Chico's FAS Inc (CHS) 2019 Q4 法說會逐字稿

Good morning, and welcome to Chico's FAS Fourth Quarter 2019 Earnings Conference Call and Webcast. (Operator Instructions) Please note this call is being recorded.

早上好，歡迎來到 Chico 的 FAS 2019 年第四季度收益電話會議和網絡廣播。（操作員說明）請注意此通話正在錄音。

I would now like to turn the conference over to David Oliver, Interim Chief Financial Officer and Senior Vice President - Controller. Mr. Oliver, please go ahead.

我現在將會議交給臨時首席財務官兼高級副總裁兼財務總監 David Oliver。奧利弗先生，請繼續。

Thanks, Anita, and good morning, everyone. Welcome to the Chico's FAS Fourth Quarter 2019 Earnings Call and Webcast. Joining me today are Bonnie Brooks, CEO and President and Molly Langenstein, President, Apparel Group. Our earnings release issued today can be found on our website at www.chicosfas.com under Investor Relations Press Releases.

謝謝安妮塔，大家早上好。歡迎參加 Chico 的 FAS 2019 年第四季度收益電話會議和網絡廣播。今天與我一起出席的還有服裝集團首席執行官兼總裁邦妮·布魯克斯 (Bonnie Brooks) 和總裁莫莉·蘭根斯坦 (Molly Langenstein)。我們今天發布的收益報告可以在我們的網站 www.chicosfas.com 的“投資者關係新聞稿”下找到。

Let me caution you that today's comments will include forward-looking statements about current expectations, assumptions, plans, estimates, judgments and projections about our business and our industry, which speak only as of today's date. You should not unduly rely on forward-looking statements. Important factors that could cause actual results or events to differ materially from these projections or implied by our forward-looking statements are included in our earnings release issued this morning, in our SEC filings and in the comments that are made on this call. We disclaim any obligation to update or revise any information discussed in this call, except as may be otherwise required by law.

讓我提醒您，今天的評論將包括有關我們業務和行業當前預期、假設、計劃、估計、判斷和預測的前瞻性陳述，這些陳述僅截至今天。您不應過度依賴前瞻性陳述。可能導致實際結果或事件與這些預測或我們的前瞻性陳述暗示的重大差異的重要因素包含在我們今天早上發布的收益報告、我們向 SEC 提交的文件以及本次電話會議中發表的評論中。除非法律另有要求，否則我們不承擔更新或修改本次電話會議中討論的任何信息的義務。

In addition, our comments and discussion of fourth quarter financial results will be on an adjusted or non-GAAP basis. You will find a GAAP and non-GAAP reconciliation schedule included in our press release issued this morning, which is available on our website. And with that, I'll turn it over to Bonnie.

此外，我們對第四季度財務業績的評論和討論將基於調整後或非公認會計準則的基礎上。您可以在我們今天早上發布的新聞稿中找到 GAAP 和非 GAAP 調節表，該新聞稿可以在我們的網站上找到。有了這個，我會把它交給邦妮。

Thank you, David, and good morning, everyone. As announced this morning, we delivered a fantastic fourth quarter across all 3 of our brands. Chico's FAS, reported a question comparable sales of 2.2%, marking the first positive comp quarter for Chico's FAS since Q2 of 2015. This is an improvement of 440 basis points from Q3 and a 920 basis points swing since Q1, demonstrating 3 quarters of sequential sales increases, and not only stabilization of the business, but strong growth. The fourth quarter also marks the first positive sales quarter for all 3 brands since Q4 of 2014.

謝謝大衛，大家早上好。正如今天早上宣布的那樣，我們所有三個品牌的第四季度業績都非常出色。Chico's FAS 報告的可比銷售額為 2.2%，標誌著 Chico's FAS 自 2015 年第二季度以來第一個積極的季度業績。這比第三季度提高了 440 個基點，自第一季度以來波動了 920 個基點，表明銷售額連續三個季度增長，不僅業務穩定，而且增長強勁。第四季度也標誌著這三個品牌自 2014 年第四季度以來第一個銷售正增長的季度。

Chico's had significant improvement in the quarter, reporting a comparable sales increase of point 0.9% driven by improvements to the assortment in the quality, design and relevance of our product. This is an improvement of 450 basis points from Q3 and is Chico's first positive comp sales quarter Since Q2 2015.

Chico's 在本季度取得了顯著的進步，報告稱，由於我們產品的質量、設計和相關性方面的改進，可比銷售額增長了 0.9%。這比第三季度提高了 450 個基點，也是 Chico 自 2015 年第二季度以來第一個正銷售季度。

White House Black Market delivered a 10 basis point comparable sales results, it's best quarter in the past 18 quarters since Q1 2015. The improvement was driven by our ability to quickly edit our assortment and bring in new products. The positive comp is a full 16-point swing from Q2, an extraordinary recovery, which we believe is one of the fastest ever in fashion retailing.

白宮黑市銷售業績同比增長 10 個基點，這是自 2015 年第一季度以來過去 18 個季度中最好的季度。這一改進是由我們快速編輯品種和引入新產品的能力推動的。積極的業績比第二季度足足上升了 16 個百分點，這是一次非凡的複蘇，我們認為這是時尚零售業有史以來最快的複甦之一。

Our fourth quarter financial performance for Chico's and White House Black Market was fueled by our disciplined focus on delivering our strategic priorities. We worked quickly to make significant changes to nearly 50% of the fall assortment.

我們對奇科和白宮黑市的第四季度財務業績得益於我們對實現戰略重點的嚴格關注。我們迅速行動，對近 50% 的秋季品種做出了重大改變。

This came in the form of major changes to the pipeline of goods and sizable cancellations that the team were stellar at executing to drive positive results. We invested in elevating the quality, taste and styling of our new products, and it's resonating with customers.

這是通過對貨物管道的重大改變和大規模取消的形式實現的，該團隊在執行這些改變方面表現出色，以取得積極的成果。我們投資提升新產品的質量、品味和款式，並引起了客戶的共鳴。

We got behind items in a major way from both an inventory and marketing perspective. The trajectory change in both Chico's and White House Black Market validates we're on the right path. And, today, I'm pleased to have Molly Langenstein, President of our Apparel Group on the call with us to elaborate on how she is driving the impressive performance for both Chico's and White House Black Market.

從庫存和營銷的角度來看，我們在很大程度上支持了產品。奇科和白宮黑市的軌跡變化證明我們走在正確的道路上。今天，我很高興邀請我們服裝集團總裁 Molly Langenstein 與我們通話，詳細介紹她如何為 Chico's 和白宮黑市帶來令人印象深刻的業績。

Soma's incredible growth continued in the fourth quarter under Intimates President, Mary van Praag, and all categories drove outstanding results, delivering a comparable sales growth of 9.4%. This was the sixth consecutive quarter of positive comp growth for Soma on top of a strong 6.2% increase last year in fourth quarter comp sales.

在 Intimates 總裁 Mary van Praag 的領導下，Soma 在第四季度繼續實現令人難以置信的增長，所有類別都取得了出色的業績，可比銷售額增長了 9.4%。這是 Soma 繼去年第四季度同業銷售額強勁增長 6.2% 的基礎上，連續第六個季度實現同業正增長。

We realized the opportunity to grow Soma exponentially early in 2019 and moved quickly to increase investments in inventory and marketing for the brand. This momentum is supported by our focus on creating a continuous pipeline of innovative and solution-oriented products, which are key for customer acquisition and retention. Our sleep business had a strong double-digit comp in a record-setting Q4.

我們在 2019 年初意識到了 Soma 呈指數級增長的機會，並迅速採取行動增加對該品牌的庫存和營銷投資。我們致力於創建一系列創新和以解決方案為導向的產品，這為獲取和保留客戶的關鍵提供了支持。我們的睡眠業務在第四季度實現了強勁的兩位數業績，創紀錄。

Earlier this week, we announced an extension to Soma's Vanishing 360 franchise with new styles and extended sizes. This launch and others will continue to increase sales through innovation. As well we have a significant growth plan for Soma, supported by increased investments in the store footprint in 2020 and in digital, both for acquisition and new customers.

本週早些時候，我們宣布延長 Soma 的 Vanishing 360 系列產品的新款式和尺寸。此次發布和其他產品將繼續通過創新增加銷量。此外，我們還為 Soma 制定了一項重大增長計劃，並通過 2020 年增加對門店佈局和數字化方面的投資來支持，以吸引新客戶。

For Chico's FAS Q4 was also a very strong quarter for digital sales. Our company-wide online penetration had double-digit growth as more customers shopped seamlessly and conveniently, however, wherever and whenever they want. Style Connect, our proprietary digital styling tool has exceeded our goal of deepening our personal connection with our customers in our boutiques and in digital. Notably in the quarter, all 3 brands had record high mobile traffic.

對於 Chico 的 FAS 來說，第四季度的數字銷售也是非常強勁的。隨著越來越多的客戶隨時隨地無縫、便捷地購物，我們全公司的在線滲透率實現了兩位數的增長。Style Connect 是我們專有的數字造型工具，它超越了我們在精品店和數字領域加深與客戶的個人聯繫的目標。值得注意的是，在本季度，所有 3 個品牌的移動流量均創歷史新高。

Additionally, in the back half of the year, the team reduced click to delivery time, and enhanced shipping and product tracking information, which improved customer experience. We also set new records to online order fulfillment performance at our distribution centers during the peak holiday period. We've implemented digital improvements, including a digital shoppable catalog, improved search engine optimization, and better site navigation.

此外，在今年下半年，該團隊減少了點擊交貨時間，並增強了運輸和產品跟踪信息，從而改善了客戶體驗。假期高峰期間，我們的配送中心的在線訂單履行績效也創下了新紀錄。我們實施了數字化改進，包括數字化購物目錄、改進的搜索引擎優化和更好的網站導航。

Lastly, BOPIS and mobile POS were fully operational across all banners in Q4, and for 2020, we have invested in a significantly platform and are transforming the sourcing and supply chain operations to increase overall efficiency. Our sourcing group continues to focus on reducing our overall China penetration and diversifying our country of origin mix.

最後，BOPIS 和移動 POS 在第四季度在所有橫幅上全面運行，2020 年，我們投資了一個重要的平台，並正在轉變採購和供應鏈運營，以提高整體效率。我們的採購團隊繼續專注於減少我們在中國的整體滲透率並使我們的原產國組合多樣化。

I'd like to comment on the impact of COVID-19, specifically to our business. We are very closely monitoring and measuring the situation and 3 things are working in our favor. First, fortunately for us, our total penetration of China goods has been reduced from the high 40% last year in this time period, to the low 20% range this year. So any slowdown in summer delivery will impact a much lower percent of our total inventory.

我想談談 COVID-19 的影響，特別是對我們業務的影響。我們正在密切監視和衡量局勢，有三件事對我們有利。首先，對我們來說幸運的是，我們對中國商品的總滲透率已從去年同期的 40% 的高位下降到今年的 20% 的低位。因此，夏季交貨的任何放緩都會影響我們總庫存的比例大大降低。

Secondly, we have fully accounted for all of our Q1 products and at this time expect minimal to low impact from the virus on Q1 delivery. Third, we do have time to implement mitigation strategies, should they be needed going forward, to move some production to other countries. The movement of goods out of China will also positively offset the impact of the tariffs.

其次，我們已經充分考慮了第一季度的所有產品，目前預計病毒對第一季度交付的影響極小至較低。第三，如果未來需要的話，我們確實有時間實施緩解戰略，將一些生產轉移到其他國家。貨物運出中國也將積極抵消關稅的影響。

When I joined the business at the end of Q1, I stated then that we would strengthen our team with seasoned apparel merchants who had demonstrated a proven track record in our specific product categories. I'm pleased to report that major progress has been made against that initiative in the last 9 months, with 12 new members added to the overall company leadership in significant senior role, not only in merchandising and design, but also in digital and marketing. These executives with impressive and directly related experience, further enhance and reinforce the bench strength right across the company in all 3 brands.

當我在第一季度末加入該公司時，我表示我們將通過經驗豐富的服裝商人來加強我們的團隊，這些商人在我們的特定產品類別中表現出了良好的業績記錄。我很高興地向大家報告，在過去 9 個月中，該計劃取得了重大進展，公司整體領導層增加了 12 名新成員，擔任重要的高級職務，不僅在銷售和設計領域，而且在數字和營銷領域。這些高管擁有令人印象深刻且直接相關的經驗，進一步增強和加強了整個公司所有 3 個品牌的後備力量。

We also have implemented new disciplines to the financial planning, forecasting and tracking of all components of inventory and sales to ensure we not only meet, but exceed our goals. Along with these, we have focused our effort on the proper market positioning for each brand, and the closer alignment of the brand DNA to the customer. We are a company of 3 unique brands, each with specific and unique DNA, each with compelling competitive advantages and each operating in its own white space.

我們還對庫存和銷售的所有組成部分的財務規劃、預測和跟踪實施了新的規定，以確保我們不僅達到而且超越我們的目標。除此之外，我們還重點關注每個品牌的正確市場定位，以及品牌 DNA 與客戶的緊密結合。我們是一家擁有 3 個獨特品牌的公司，每個品牌都具有特定且獨特的 DNA，每個品牌都具有引人注目的競爭優勢，並且每個品牌都在自己的空白領域運營。

The market share we lost in recent years in apparel was directly related to the products not being precisely aligned to the target customer. And the experts we now have on the teams have already begun to apply their knowledge, their familiarity and competence in aligning the products with the exact target customer.

近年來我們在服裝領域失去的市場份額與產品未能精確定位目標客戶直接相關。我們團隊中現有的專家已經開始運用他們的知識、熟悉程度和能力，使產品與準確的目標客戶保持一致。

We are on a terrific path forward and expect the improvements and new disciplines in our business to continue to reap benefits in 2020 and beyond, as we work diligently to return Chico's FAS to the strong past performance track -- performance track record. It is certainly capable of delivering in the future.

我們正走在一條偉大的道路上，預計我們業務的改進和新規則將在 2020 年及以後繼續獲得收益，因為我們將努力工作，使 Chico 的 FAS 恢復到過去強勁的績效軌道——績效記錄。它肯定有能力在未來交付。

I'd now like to turn this morning's call over to Molly Langenstein to discuss the Chico's and White House Black Market brands in more detail.

我現在想把今天早上的電話轉給莫莉·朗根斯坦 (Molly Langenstein)，更詳細地討論奇科和白宮黑市品牌。

Thanks, Bonnie. I'm delighted to speak with you this morning about the strong results at Chico's and White House Black Market and the great momentum we are seeing in both brands. Chico's had a remarkable 450 basis point improvement from Q3 to Q4 and White House Black Market had a 580 basis point improvement from Q3 to Q4. The rigor and discipline that was put in place is working.

謝謝，邦妮。我很高興今天早上與您談論奇科和白宮黑市的強勁業績以及我們在這兩個品牌中看到的巨大勢頭。Chico's 從第三季度到第四季度顯著提高了 450 個基點，白宮黑市從第三季度到第四季度提高了 580 個基點。所實行的嚴格性和紀律正在發揮作用。

The challenges we experienced at Chico's and White House Black Market were related the fundamental disciplines that can be and are being fixed. We identified our talent gaps and made swift changes in the organization, which streamlines decision making. The new and existing leadership teams across both brands have multiple years of experience in multi-brand management which brought rigor and focus to driving every detail in the business.

我們在奇科和白宮黑市遇到的挑戰與可以並且正在解決的基本規則有關。我們發現了人才缺口，並迅速對組織進行了變革，從而簡化了決策。兩個品牌的新任和現有領導團隊都擁有多年的多品牌管理經驗，這使得嚴謹和專注推動業務的每一個細節。

We addressed our assortment architecture, editing process and category investments. We have built a more robust forecasting process to more accurately forecast and identify risks and opportunities. We also have established a fashion matrix to drive change in our product. Our disciplined approach is delivering results. We are continuing to make progress, and I'm excited to share the highlights for our fourth quarter.

我們討論了我們的分類架構、編輯流程和類別投資。我們建立了更強大的預測流程，以更準確地預測和識別風險和機遇。我們還建立了一個時尚矩陣來推動我們產品的變革。我們嚴格的方法正在交付成果。我們正在繼續取得進展，我很高興分享我們第四季度的亮點。

At Chico's we made great strides in our assortment and we had big wins as a result of improvements in quality, design and newness. The teams quickly reassorted our fashion product and also we worked our marketing plan to highlight the renewed aesthetics and value our customers love and expects from us.

在 Chico's，我們在品種方面取得了長足的進步，並且由於質量、設計和新穎性方面的改進而取得了巨大的勝利。團隊迅速重新組合了我們的時尚產品，我們還制定了營銷計劃，以突出客戶喜愛和期望我們的新美學和價值。

We were able to cancel product in the pipeline and reinvest more deeply in key items, while promoting -- excuse me, while protecting a balanced assortment between basics and fashion. We were more successful this year with gifting. Our customers are reacting positively to our assortment changes and elevated product aesthetic, evidenced by both our higher average unit retail and increased units per transaction.

我們能夠取消正在開發的產品，對關鍵產品進行更深入的再投資，同時進行促銷——對不起，同時保護基本款和時尚之間的平衡。今年我們在送禮方面更加成功。我們的客戶對我們的品種變化和產品美觀度的提高做出了積極的反應，我們更高的平均零售量和每筆交易的增加量就證明了這一點。

At White House Black Market, we have returned to the core DNA of the brand, which is centered on a versatile black and white framework. Aligning our merchandising and design functions was key to getting our product right, and the 580 basis point comp improvement was driven by the work our team has done to quickly edit our assortment and bring in new products. Similar to Chico's, we cancelled orders during the quarter and capitalized on opportunities with key items. During the holiday season, we highlighted self-gifting and featured categories that appeal to our customers. We also used extensive data which inform new assortments and flow of inventory.

在White House Black Market，我們回歸了品牌的核心DNA，即以多功能的黑白框架為中心。協調我們的銷售和設計職能是我們產品正確的關鍵，而 580 個基點的補償改進是由我們的團隊為快速編輯我們的品種和引入新產品所做的工作推動的。與 Chico 類似，我們在本季度取消了訂單，並利用關鍵產品的機會。在假期期間，我們突出了自我禮物和吸引客戶的特色類別。我們還使用了大量數據來了解新的品種和庫存流程。

With regards to marketing activity, at Chico's we followed a promotional cadence similar for holiday in the prior year, but we saw better full-priced performance as customers responded more positively to our new offerings. Our focus was on architecting a unique and beautiful boutique assortment, and we built a promotional strategy around our elevated styles.

關於營銷活動，在 Chico's，我們遵循了與去年假期類似的促銷節奏，但隨著客戶對我們的新產品反應更加積極，我們看到了更好的全價表現。我們的重點是打造獨特而美麗的精品系列，並圍繞我們的高端風格製定了促銷策略。

At White House Black Market, we have engaged in more editorial marketing, and our holiday performance was strong. We made changes to our store window strategy and interior visual presentation to drive additional traffic. We also cleared aged inventory which better showcased our new assortments and improved the shopping experience for our customers.

在白宮黑市，我們進行了更多的社論營銷，我們的假期表現強勁。我們改變了商店櫥窗策略和內部視覺呈現，以增加流量。我們還清理了陳舊庫存，以更好地展示我們的新品種並改善客戶的購物體驗。

Recently, we met with our top Chico's and White House Black Market customers and built a product and end-use assortment architecture that is similar to what I have used in my past. This, along with our Q4 learnings, will inform our go-forward strategy and put the customer at the center of our decisions. I am pleased with how our teams are working collaboratively and holding each other accountable. I am confident that the breadth and depth of the new disciplines in the organization will continue the momentum into 2020.

最近，我們會見了奇科和白宮黑市的頂級客戶，並構建了一個與我過去使用的類似的產品和最終用途分類架構。這與我們第四季度的經驗教訓一起，將為我們的前進戰略提供信息，並將客戶置於我們決策的中心。我對我們的團隊如何協作並互相負責感到滿意。我相信，該組織新學科的廣度和深度將在 2020 年繼續保持這一勢頭。

I'll now pass it to David Oliver to discuss the financial.

我現在將其交給大衛·奧利弗討論財務問題。

Thanks, Molly, and good morning, everyone. Our comments and discussion today of fourth quarter and fiscal 2019 results are on an adjusted or non-GAAP basis. A GAAP to non-GAAP reconciliation schedule is included with our press release issued this morning.

謝謝，莫莉，大家早上好。我們今天對第四季度和 2019 財年業績的評論和討論是在調整後或非公認會計原則的基礎上進行的。我們今天上午發布的新聞稿中包含了 GAAP 與非 GAAP 調節表。

We reported fourth quarter comparable sales up 2.2%, which is above the updated outlook we provided in January. We delivered our first all brand positive comp since the fourth quarter of fiscal 2014. The sequential improvement in comparable sales was driven by strong performance in our stores across all 3 of our brands and continued growth in our e-commerce business. For the full year, our e-commerce penetration grew double digits when compared to last year. We believe our ongoing investments in our digital capabilities will continue to feel healthy growth in this channel.

我們報告第四季度可比銷售額增長 2.2%，高於我們 1 月份提供的最新預期。自 2014 財年第四季度以來，我們交付了首個全品牌正面補償。可比銷售額的環比增長得益於我們所有三個品牌商店的強勁業績以及電子商務業務的持續增長。全年來看，我們的電子商務滲透率與去年相比增長了兩位數。我們相信，我們對數字能力的持續投資將繼續在該渠道中實現健康增長。

We reported fourth quarter adjusted net loss per share of $0.03, which excludes the impact of accelerated depreciation charges related to our retail fleet optimization plan.

我們報告第四季度調整後每股淨虧損為 0.03 美元，其中不包括與我們的零售車隊優化計劃相關的加速折舊費用的影響。

Merchandising margin in the quarter was down 100 basis points, primarily due to a full quarter impact of tariffs, approximately $5 million. We exited the year clean and current on inventory. Total inventory was up 4.9% compared to last year, primarily due to planned investments in Soma to create and test additional assortment strategies. Notably, gross margin for the quarter was up 50 basis points.

本季度的商品利潤率下降了 100 個基點，主要是由於關稅對整個季度的影響，約為 500 萬美元。我們以乾淨的狀態結束了這一年，庫存充足。總庫存比去年增加 4.9%，主要是由於計劃投資 Soma 以創建和測試額外的分類策略。值得注意的是，該季度的毛利率上升了 50 個基點。

Fourth quarter SG&A was down $4 million or 80 basis points compared to last year. On a full year basis, SG&A was down $6 million, primarily due to decrease in employee cost, partially offset by investments in marketing. Our balance sheet remains strong and we ended the quarter with $128 million in cash and short term investments, and $43 million in debt. In fiscal 2019, net cash from operating activities approximated property and equipment purchases. This resulted in net zero free cash flow for the year.

與去年相比，第四季度的 SG&A 下降了 400 萬美元，即 80 個基點。按全年計算，SG&A 減少了 600 萬美元，主要是由於員工成本下降，但部分被營銷投資所抵消。我們的資產負債表仍然強勁，本季度末我們擁有 1.28 億美元的現金和短期投資，以及 4300 萬美元的債務。2019財年，經營活動產生的淨現金接近財產和設備採購。這導致本年度自由現金流淨額為零。

In 2019, we continue to focus our capital and cloud-based expenditures on investments in technology and existing store remodels and refreshes. Capital and capitalized cloud-based expenditures totaled $45 million.

2019年，我們繼續將資本和基於雲的支出集中在技術投資以及現有商店改造和更新上。資本和資本化雲支出總計 4500 萬美元。

As part of our retail fleet optimization plan in the fourth quarter, we opened 2 new stores and closed a total of 34. For the full year 2019, we opened 6 new stores and closed a total of 83. Since the announcement of the retail fleet optimization program, we have closed 94 stores. In fiscal '20, we expect to close 60 to 70 stores, and due to significant improvement in our sales trends, we are reevaluating every closure decision. We also plan to invest in opening as many as 10 new Soma stores in 2020.

作為第四季度零售店優化計劃的一部分，我們新開了 2 家門店，總共關閉了 34 家門店。2019 年全年，我們新開 6 家門店，共關閉 83 家門店。自宣布零售車隊優化計劃以來，我們已經關閉了 94 家門店。在 20 財年，我們預計將關閉 60 至 70 家商店，由於我們的銷售趨勢顯著改善，我們正在重新評估每一項關閉決定。我們還計劃在 2020 年投資開設多達 10 家新的 Soma 商店。

In the fourth quarter, we returned approximately $10 million to shareholders in the form of dividends. As announced earlier today, we are pleased to report the company declared a 3% increase in our quarterly cash dividend. This represents our sixth consecutive 3% increase in the dividend.

第四季度，我們以股息的形式向股東返還了約 1000 萬美元。正如今天早些時候宣布的那樣，我們很高興地報告公司宣布將季度現金股息增加 3%。這代表我們連續第六次將股息增加 3%。

Turning now to our financial outlook for the first quarter and full year fiscal 2020. Our outlook excludes any potential impact from COVID-19, otherwise known as the coronavirus. In addition, we expect tariff headwinds for the year to be largely offset by our sourcing initiatives.

現在轉向我們對 2020 財年第一季度和全年的財務展望。我們的展望不包括 COVID-19（也稱為冠狀病毒）的任何潛在影響。此外，我們預計今年的關稅阻力將在很大程度上被我們的採購計劃所抵消。

For the first quarter of fiscal '20 compared to last year's first quarter, we expect a low single-digit increase in total net sales and consolidated comparable sales, reflecting continued progress and momentum in the business.

與去年第一季度相比，20 財年第一季度，我們預計總淨銷售額和合併可比銷售額將出現低個位數增長，反映出業務的持續進展和勢頭。

Gross Margin, as a percent of net sales, up 20 to 40 basis points, due primarily to strategic reductions and promotional depth as well as leverage over fixed cost on higher sales. SG&A will be approximately flat.

毛利率占淨銷售額的百分比增長了 20 至 40 個基點，這主要是由於戰略性削減和促銷深度以及銷售額增加對固定成本的槓桿作用。SG&A 將大致持平。

Now for the full year fiscal 2020 outlook compared to last year, we expect a pattern similar to Q1, a low single-digit increase in total net sales and consolidated comparable sales. Gross margin as a percent of net sales increasing approximately 50 to 100 basis points.

現在，與去年相比，我們預計 2020 財年全年的格局與第一季度類似，淨銷售額和綜合可比銷售額將出現低個位數增長。毛利率占淨銷售額的百分比增加約 50 至 100 個基點。

SG&A to be approximately $10 million, reflecting increased investment in marketing and a return to target incentive compensation levels, partially offset by ongoing cost management. A fiscal 2020 tax expense in the range of $3 million to $5 million and capital and cloud-based expenditure of approximately $45 million to $50 million, primarily driven by technology enhancement and targeted reinvestments in stores.

SG&A 約為 1000 萬美元，反映了營銷投資的增加和目標激勵薪酬水平的回歸，部分被持續的成本管理所抵消。2020 財年的稅收支出約為 300 萬至 500 萬美元，資本和基於雲的支出約為 4500 萬至 5000 萬美元，主要由技術增強和對商店的有針對性的再投資推動。

Please note, that accelerated depreciation related to our retail fleet optimization will not be reflected as a GAAP to non-GAAP adjustment in fiscal '20 based on the declining significance of this charge.

請注意，由於此項費用的重要性不斷下降，與我們的零售車隊優化相關的加速折舊不會反映為 20 財年的 GAAP 到非 GAAP 調整。

I'll now turn the call back over to Anita.

我現在將把電話轉回給安妮塔。

(Operator Instructions) The first question today comes from Susan Anderson with B. Riley FBR.

（操作員說明）今天的第一個問題來自 Susan Anderson 和 B. Riley FBR。

I guess, looking at the gross margin for this year and then the impact of China sourcing, it's amazing you're able to get it down to 20%. I guess, I'm kind of curious, can you quantify the impact and will that mainly be in the first half and does that become a tailwind in the second half given the decline in penetration?

我想，看看今年的毛利率以及中國採購的影響，你能將其降至 20%，真是令人驚訝。我想，我有點好奇，你能量化影響嗎？這主要是在上半年，鑑於滲透率下降，這會成為下半年的順風車嗎？

And then, Molly, maybe if you could talk about the new products that customers are responding well to at Chico's and White House, and maybe talk about which products and designs they're really resonating with. And then, I guess, from an inventory perspective, what percent for spring do you feel will be old inventory -- I guess, older designs versus new designs?

然後，莫莉，也許你可以談談顧客在奇科和白宮反應良好的新產品，或者談談他們真正產生共鳴的產品和設計。然後，我想，從庫存的角度來看，您認為春季的舊庫存百分比是多少——我猜是舊設計與新設計相比？

Thanks, Susan. I'll take the first half of that question and then defer to Bonnie for the second. With respect to your tailwind question specifically, the -- our efforts underway to diversify country of origin really is mitigating the impact of the tariffs. So I'm not looking for a major win in that respect. All the supply chain initiatives as a whole are all about the mitigation of the tariff as it currently exists, and so I don't see that being a tailwind moving forward beyond that. With that I'll let Bonnie take the second half.

謝謝，蘇珊。我將回答這個問題的前半部分，然後請邦妮回答第二個問題。具體到你的順風問題，我們正在努力實現原產國多元化，這確實正在減輕關稅的影響。因此，我並不尋求在這方面取得重大勝利。所有供應鏈舉措作為一個整體都是為了減輕目前存在的關稅，因此我認為這不會成為除此之外的推動因素。這樣我就讓邦妮主持下半場了。

I think actually the second half of the question was for Molly. Because it was -- hi, Susan, by the way, thank you and thanks for your comments. I think your question was what product is resonating with customers at White House and Chico's. So I think I -- it's best to let Molly answer that. Thanks.

我認為實際上問題的後半部分是針對莫莉的。因為它是——嗨，蘇珊，順便說一句，謝謝你，也謝謝你的評論。我認為你的問題是哪種產品能引起白宮和奇科顧客的共鳴。所以我想我——最好讓莫莉回答這個問題。謝謝。

Thank you, Susan. Our customer data has informed our product mix between work and casual for the White House brand and also the wearing occasions by the Chico brand. We are aligned to that and by design we have balanced our fashion and basics to ensure we have excitement in all stores as well as giving the customer the special items that she wants. As we said, we shared -- we used extensive data to be able to inform these decisions and those have informed the design decisions for spring and go forward. We have a new fashion discipline and have brought in fashion talent with proven track records in designing and merchandizing.

謝謝你，蘇珊。我們的客戶數據告訴我們 White House 品牌的工作和休閒產品組合以及 Chico 品牌的穿著場合。我們與此保持一致，通過設計平衡我們的時尚和基本款，以確保我們在所有商店中都令人興奮，並為顧客提供她想要的特殊商品。正如我們所說，我們共享 - 我們使用大量數據來為這些決策提供信息，並且這些數據為 Spring 和未來的設計決策提供了信息。我們擁有新的時尚學科，並引進了在設計和銷售方面擁有良好記錄的時尚人才。

As related to your question about old versus new designs, as we shared, we came into the season clean and we feel that the impact on the new designs is very good for spring and gets better every single month as we move through the year.

至於你關於舊設計與新設計的問題，正如我們所分享的，我們進入這個季節時是乾淨的，我們認為新設計對春季的影響非常好，並且隨著一年的推移，每個月都會變得更好。

Well, the palette looks improved that both.

嗯，調色板看起來比兩者都有改進。

Thank you, Susan.

謝謝你，蘇珊。

Your next question comes from Kimberley Greenberger with Morgan Stanley.

您的下一個問題來自摩根士丹利的金伯利格林伯格。

This is Cynthia Campo on for Kimberley Greenberger. We're wondering if you could talk more about your expectations in 2020 for free cash flow and how you plan to manage the expenses there going forward?

我是金伯利·格林伯格的辛西婭·坎波。我們想知道您是否可以更多地談談您對 2020 年自由現金流的期望以及您計劃如何管理未來的費用？

Sure. I think the key element with respect to free cash flow to call out, we expect to return to our targeted level of incentive compensation, which tells you that we're going to be a lot better in that respect. I mean, our free cash flow as a whole in 2020 in our plan, would have us returning to more positive territory that would more than cover our capital expenditures as well as our dividend and beyond that. And so we feel really good about the year. Positive comp sales is a wonderful thing and gives you a lot of traction.

當然。我認為關於自由現金流的關鍵因素是，我們期望回到我們的激勵薪酬目標水平，這告訴你我們在這方面會做得更好。我的意思是，我們計劃中的 2020 年整體自由現金流將使我們回到更積極的領域，這將不僅僅是我們的資本支出以及股息等。所以我們對這一年感覺非常好。積極的補償銷售是一件很棒的事情，會給你很大的吸引力。

David has a long history with our company as well, so he was here for the many good years and he's going to keep us focused on those numbers for sure.

大衛在我們公司也有著悠久的歷史，所以他在這裡度過了很多美好的時光，他肯定會讓我們專注於這些數字。

The next question comes from Lorraine Hutchinson with Bank of America.

下一個問題來自美國銀行的洛林·哈欽森 (Lorraine Hutchinson)。

Can you talk a little bit about the $10 million increase in SG&A. Any specific buckets outside of marketing that you're working through? And if we should expect SG&A dollar growth to continue as a run rate in the out year?

您能談談 SG&A 增加 1000 萬美元的情況嗎？您正在從事營銷之外的任何具體工作嗎？我們是否應該預期 SG&A 美元的增長將繼續作為今年的運行率？

With respect to the $10 million, that number reflects both the increase in incentive compensation returning to target levels and marketing. We do have cost initiatives that are mitigating part of total spend for incentive comp and marketing and so we feel really good about it.

就 1000 萬美元而言，這個數字既反映了激勵薪酬的增加，又回到了目標水平，同時也反映了營銷活動。我們確實有一些成本計劃，可以減少激勵補償和營銷總支出的一部分，所以我們對此感覺非常好。

With respect to the marketing cost, that's pretty spread evenly over the year as a whole. But going beyond, I don't have any color on the outer years at this point in time. That's a future conversation. But the $10 million is really focused on the fact that the business is expected to do better and we're investing in the business marketing.

就營銷成本而言，全年分佈相當均勻。但除此之外，我目前對外部年份沒有任何顏色。那是未來的對話。但這 1000 萬美元的真正重點是希望業務做得更好，並且我們正在投資於業務營銷。

And then just a follow-up. The elevated levels of CapEx, I know you mentioned some investments in the cloud. Is any of that going to stores or will most of that be related to your digital strategy?

然後只是後續行動。資本支出水平提高，我知道您提到了對雲計算的一些投資。其中是否有任何內容會進入商店，或者其中大部分與您的數字策略有關？

And so now we are investing in our store base, as well as technology. The $45 million is really consistent with our historical level. What really occurred here is, instead of having on premise installations of software, we're putting in the cloud. It goes into a different bucket on the balance sheet. So we talk about it holistically -- the total spend. And so that -- the $45 million that we spent in '19 is really fairly consistent with what we have done historically in the last few years, and what we plan as well for the fiscal '20.

因此，現在我們正在投資我們的商店基礎和技術。4500萬美元確實符合我們的歷史水平。這裡真正發生的是，我們不是在本地安裝軟件，而是將其放入雲中。它進入資產負債表上的另一個桶。所以我們從整體上討論它——總支出。因此，我們在 19 年花費的 4500 萬美元確實與我們過去幾年的歷史所做的事情以及我們為 20 財年的計劃相當一致。

But, you know, we're focused on investing. We're looking at -- in the summer brands, we're looking at 10 new markets, potentially, for stores. And we're doing our refreshes. We have required remodels that we do on a regular basis in our fleet as part of the lease. And I think we feel really good about where we stand on capital.

但是，你知道，我們專注於投資。我們正在尋找夏季品牌，我們正在尋找 10 個潛在的新市場。我們正在進行刷新。作為租賃的一部分，我們要求定期對我們的機隊進行改造。我認為我們對我們在資本方面的立場感到非常滿意。

The next question comes from Roxanne Meyer with MKM Partners.

下一個問題來自 MKM Partners 的 Roxanne Meyer。

My question is on Soma. Just -- obviously, the results there have been spectacular and I'm just wondering how you think about the long term potential for Soma's market share perceptive and just contribution to FAS operating results overall longer term.

我的問題是關於索瑪的。顯然，結果非常出色，我只是想知道您如何看待 Soma 市場份額的長期潛力以及對 FAS 整體長期運營業績的貢獻。

Well, thank you for your comments. Yes, Soma has had a truly spectacular run in 2019. A lot of things contributing to that success. Most importantly, the innovative team they have and the products that they're creating that is absolutely solution-based. The launch they've had this -- earlier this week of Vanishing 360 has a fantastic tagline. It starts out with, "We've got your back, and your sides and your fronts." It's a truly amazing product that's resonating with customers and, you know, that's really a major part of the Soma's success. Along with the innovation pipeline is further intensification of products in the stores and testing of products in the stores and not on the additional inventory level that we were talking about.

嗯，謝謝您的評論。是的，Soma 在 2019 年的表現確實非常出色。許多因素促成了這一成功。最重要的是，他們擁有的創新團隊和他們正在創建的產品絕對是基於解決方案的。他們本週早些時候發布的《Vanishing 360》有一個很棒的口號。它的開頭是：“我們支持你的背部、側面和正面。”這是一款真正令人驚嘆的產品，能夠引起客戶的共鳴，你知道，這確實是 Soma 成功的一個重要部分。除了創新渠道之外，還進一步強化了商店中的產品和商店中的產品測試，而不是我們所討論的額外庫存水平。

Soma is planned to open 10 new stores this year. There is huge runway ahead for growth in Soma, because we are still extremely underpenetrated in footprints across the country, and we also have a lot of other opportunities in front of us for additional distribution. So I would say that we are extremely excited about the Soma potential and that's why we have been investing in the marketing, the stores and the inventory. And it has really one of the top teams in the industry.

Soma今年計劃開設10家新店。索馬的增長還有巨大的空間，因為我們在全國范圍內的足跡仍然極其不足，而且我們還有很多其他機會進行額外的分銷。所以我想說，我們對 Soma 的潛力感到非常興奮，這就是我們一直在營銷、商店和庫存方面進行投資的原因。它確實擁有業內最頂尖的團隊之一。

And I guess just as a follow-up, I know that you've never necessarily broken out the margins of your different businesses, but just trying to appreciate how impactful the continued success that Soma can have on the total organization? How meaningful can it be to Chico's?

我想作為後續行動，我知道您從來沒有必要細分不同業務的利潤率，而只是想了解 Soma 的持續成功對整個組織的影響有多大？這對奇科來說有多有意義？

Well, it's been meaningful this year, clearly, in terms of 2019. And we've done a lot of work actually with BCG, et cetera, who came in and thoroughly analyzed the market and our own opportunities within the market. I mean, we do believe that we still have more growth in the categories, because we are still underpenetrated in certain categories of Intimates, and so we have a lot of potential there. We are riding a wave that is the opposite of some of our competitors in terms of being modern and being solution-based. So we are really feeling very strong about the opportunity. And, yes, Soma is making a major contribution to the total company. Thank you.

嗯，就 2019 年而言，今年顯然很有意義。實際上，我們已經與 BCG 等機構合作開展了大量工作，他們深入分析了市場以及我們在市場中的機會。我的意思是，我們確實相信我們在這些類別中仍有更多增長，因為我們在某些​​內衣類別中的滲透率仍然不足，因此我們在那裡有很大的潛力。我們正在乘風破浪，在現代化和基於解決方案方面與我們的一些競爭對手相反。所以我們對這個機會真的感覺非常強烈。是的，Soma 正在為整個公司做出重大貢獻。謝謝。

The next question comes from Janet Kloppenberg with JJK Research.

下一個問題來自 JJK Research 的 Janet Kloppenberg。

I had a couple of questions. I know that the gross margin outlook is being somewhat inhibited by the tariff pressures, but you had a much larger rate of improvement in the fourth quarter. So I was wondering if you could help us understand why there couldn't be further upside beyond that -- beyond what you are guiding to for the first quarter and for fiscal '20, especially with inventories being lean?

我有幾個問題。我知道毛利率前景在一定程度上受到關稅壓力的抑制，但第四季度的改善幅度要大得多。因此，我想知道您是否可以幫助我們理解為什麼除了您對第一季度和 20 財年的指導之外，尤其是在庫存較少的情況下，不能有進一步的上升空間？

Also, I was wondering if [Maggie] or Bonnie could talk about the spring -- the February trends and if they continue to resonate? And specifically about inventory investments at Chico's and White House Black Market, do you have enough of the right products? Are your inventories aligned with demand trends? That would be really important for us to understand.

另外，我想知道 [Maggie] 或 Bonnie 是否可以談論春季 - 二月的趨勢以及它們是否會繼續引起共鳴？特別是關於奇科和白宮黑市的庫存投資，您是否有足夠的合適產品？您的庫存與需求趨勢一致嗎？理解這一點對我們來說非常重要。

And as we go forward, perhaps you could tell us whether the reconfiguration of the assortments are completely worked out or if that will take quarter-by-quarter, and when you think they'll reflect the vision of the merchandising team? And just lastly, if we could get an idea of tax rate by the quarter?

隨著我們的前進，也許您可以告訴我們品種的重新配置是否已經完全解決，或者是否需要逐季度進行，以及您認為它們何時會反映銷售團隊的願景？最後，我們能否了解每季度的稅率？

I'll take the first and the last and have Molly respond to the middle question there. Specifically, with respect to gross margin expansion and in the fourth quarter what you're saying as whole. As we did call out, we did have a headwind with tariffs in the fourth quarter on maintaining margin roughly 100 bps. But in addition to that, we did have wins by leveraging ourselves. As you know, we closed 83 stores last year -- some of our underperforming stores. And so that did deliver some gross margin improvement overall. The work that we're doing in supply chain logistics to -- on country of origin is offsetting the tariffs and we're going to continue to run in that space and, ultimately, I think they pay dividends long term.

我將採取第一個和最後一個，並讓莫莉回答中間的問題。具體來說，關於毛利率擴張以及您所說的第四季度的整體情況。正如我們所指出的，我們在第四季度確實遇到了關稅的阻力，無法將利潤率維持在 100 個基點左右。但除此之外，我們確實通過利用自己取得了勝利。如您所知，我們去年關閉了 83 家商店——其中一些表現不佳。因此，這確實帶來了整體毛利率的一些改善。我們在原產國的供應鏈物流方面所做的工作正在抵消關稅，我們將繼續在這個領域開展業務，最終，我認為它們會帶來長期紅利。

I would also call out that we are getting better product acceptance, which is resulting in better full-priced selling, less discounting overall. Speaking to the tax rate, we did call out $3 million to $5 million. We will have a higher rate in the first quarter, really driven by our incentive compensation limitations under the tax code. But, otherwise, the -- in terms of the rate, it's going to be fairly consistent the balance of the year.

我還要指出的是，我們的產品接受度越來越高，這導致全價銷售更好，整體折扣更少。說到稅率，我們確實標出了 300 萬至 500 萬美元。我們將在第一季度獲得更高的利率，這實際上是由於稅法規定的激勵性薪酬限制所致。但是，除此之外，就利率而言，今年的餘額將相當一致。

Molly?

莫莉？

Janet, in regards to the inventory investments aligned to trends, as you know in our business that is a constant juggle to make sure that we are chasing the needs of the customers. We were pleased with the results of the customers' reaction to our inventory, and how she positively reacted to the new offerings in fourth quarter and we're seeing the same in the month of February.

珍妮特，關於與趨勢相符的庫存投資，正如您在我們的業務中所知，這是一個不斷的努力，以確保我們追逐客戶的需求。我們對客戶對我們庫存的反應結果以及她對第四季度新產品的積極反應感到滿意，我們在二月份也看到了同樣的情況。

As we move forward, and we reconfigure the assortments to reflect the vision, that is, we feel really positive about the changes that we've made and the information that we got from our top customers to inform that we are on the right track. So we are really pleased and confident about the 2020 year.

隨著我們前進，我們重新配置品種以反映願景，也就是說，我們對我們所做的改變以及我們從頂級客戶那裡獲得的信息感到非常積極，這些信息表明我們正走在正確的軌道上。因此，我們對 2020 年感到非常高興和充滿信心。

And do you think that the inventory investments right now are where they should be or is that a gradual refinement process?

您認為目前的庫存投資是否處於應有的水平，還是一個逐步完善的過程？

It's a gradual refinement process and the good thing is that we came into the year clean.

這是一個逐步完善的過程，好消息是我們乾淨利落地進入了這一年。

And do you think that the back half assortments will be where they should be or do you think you'll get there sooner, Molly?

你認為後半部分的品種會在它們應該在的地方嗎？還是你認為你會更快到達那裡，莫莉？

We believe that there is progress being made every month on the information that we have from our extensive customer data and we are pleased with the way that she is reacting, not only in fourth quarter, but how she's reacting today. So we're on a...

我們相信，我們從廣泛的客戶數據中獲得的信息每個月都在取得進展，我們對她的反應方式感到滿意，不僅在第四季度，而且她今天的反應方式。所以我們正在...

And I could squeeze in -- can I squeeze in one more just on the -- I know [AUL] will benefit from lower clearance and markdowns. But I was just wondering about the mix of price points, if you saw them remaining flat, moving higher or if your opening price points have modified somewhat?

我可以擠進去——我可以再擠進去一個嗎——我知道[AUL]將受益於較低的清倉和降價。但我只是想知道價格點的組合，您是否看到它們保持持平、上漲，或者您的開盤價點是否有所改變？

We believe that we will be moving higher. We expect continued progress in our AUR, mostly with the benefit of the better product acceptance and more strategic promotional decisions. There will be some mix impact as the customer response to our fashion offering.

我們相信，我們會走得更高。我們預計 AUR 將繼續取得進展，這主要得益於更好的產品接受度和更具戰略性的促銷決策。隨著客戶對我們時尚產品的反應，將會產生一些混合影響。

The next question comes from Paul Trussell with Deutsche Bank.

下一個問題來自德意志銀行的保羅·特魯塞爾。

This is Gabby Carbone on for Paul. So you've been successful recently with your promotion reductions. Maybe if you could just discuss bigger picture on how you view the promotional environment, and if you think anything has changed over the last few quarters?

我是蓋比·卡本 (Gabby Carbone) 替保羅發言。因此，您最近在促銷折扣方面取得了成功。也許您可以討論一下您對促銷環境的看法，以及您認為過去幾個季度發生了什麼變化嗎？

And then I know you don't usually comment separately on the outlets but just curious if you're seeing anything different in that channel versus the full line stores.

然後我知道您通常不會單獨評論商店，只是好奇您是否在該渠道中看到與全線商店不同的東西。

Thank you so much, Gabriella. It's Molly. Regarding the promotional cadence. We are being very strategic with our promotional cadence and testing into strategies and pulling back where the product allows us to pull back. We are confident that our focus on architecting a unique, beautiful boutique assortment, and building new promotional strategies will result in AUR expansion across all of our brands. As it relates to outlet or outlet business remains a small part of our portfolio and it continues to perform to our expectations.

非常感謝你，加布里埃拉。是莫莉。關於促銷節奏。我們的促銷節奏和測試策略非常具有戰略性，並在產品允許我們撤退的地方撤退。我們相信，我們專注於打造獨特、精美的精品店系列，並製定新的促銷策略，將導致我們所有品牌的 AUR 擴張。由於它與直銷或直銷業務相關，因此仍然只占我們投資組合的一小部分，並且它的表現將繼續符合我們的預期。

On the marketing investments, could you maybe discuss redirecting those dollars, maybe versus what you have done historically?

關於營銷投資，您能否討論一下重新調整這些資金的方向，也許與您歷史上所做的相比？

Hi, Gabriella. I'll take that one. It's Bonnie. One of the things that we have been doing over the last year probably more intensely is shifting marketing spend to digital. And the comp growth that we've had in digital, as we said, was double digit this year. So we know that that is paying off. And I think the most important things that we understand about our customers is that the majority of their shopping begins online. It may not end online, but the process definitely begins online. And our marketing works that has been the most well received and the changes that we've made that have been the best received are particularly evident, I would say, in Chico's were the marketing, if you saw it in the fourth quarter, was very editorial. I urge you to take a look at it now online if you haven't seen it, because it's really stand out marketing. And I would think it's fair to say that that's the direction that we're moving towards. The Soma brand marketing has also been exceptional. And so we are having some fantastic results based on new marketing strategies.

嗨，加布里埃拉。我會接受那個。是邦妮。去年我們一直在做的事情之一可能更加集中，就是將營銷支出轉向數字化。正如我們所說，今年我們在數字領域的增長率達到了兩位數。所以我們知道這是有回報的。我認為我們對客戶了解的最重要的一點是，他們的大部分購物都是從網上開始的。它可能不會在網上結束，但這個過程肯定是在網上開始的。我們的營銷工作最受好評，我們所做的最受好評的改變尤其明顯，我想說，奇科的營銷，如果你在第四季度看到的話，非常明顯。社論。如果你還沒有看過的話，我強烈建議你現在就在網上看一下，因為它的營銷確實很出色。我認為可以公平地說，這就是我們前進的方向。Soma 品牌營銷也非常出色。因此，我們基於新的營銷策略取得了一些出色的成果。

The next question comes from Manny Shapiro (sic) [Marni Shapiro] with Retail Tracker.

下一個問題來自 Retail Tracker 的 Manny Shapiro（原文如此）[Marni Shapiro]。

I have a technology question for you. You have a very engaged digital consumer. And it sounds like in all your commentary that your e-commerce, your online sales, digital continue to grow at a rapid clip. And years ago Chico's was one of the first to kind of roll out the in-store apps for their sales associates. So I'm curious what you guys are thinking next steps POS and BOPIS and things like that for your consumer. And could you talk a little bit about apps and linking loyalty programs into apps and things like that the Chico's consumer?

我有一個技術問題要問你。您有一個非常活躍的數字消費者。聽起來您的所有評論都表明您的電子商務、在線銷售和數字化繼續快速增長。多年前，Chico's 是第一批為其銷售人員推出店內應用程序的公司之一。所以我很好奇你們對 POS 和 BOPIS 以及類似的消費者的下一步有何想法。您能否談談應用程序以及將忠誠度計劃鏈接到應用程序以及奇科消費者之類的事情？

Sure. The tool that we have -- that the proprietary tool that was developed a couple of years ago --- well, over the last few years, and has been rolled out across all the brand is called Style Connect. And it is a tool that has had incredible response and is really taking our most amazing personnel service and moving it through a digital platform.

當然。我們擁有的工具——幾年前開發的專有工具——過去幾年，已經在所有品牌中推廣，稱為 Style Connect。它是一個引起了令人難以置信的反響的工具，它真正利用了我們最令人驚嘆的人事服務，並將其通過數字平台轉移。

There are new steps in the pipeline for that program that we can't share right now. But it continues to evolve. And the actual rollout of Style Connect that was completed by the end of Q3 was really fully implemented across the business and Q4 has beat our expectations. So we do believe that the team's work is over performing and we're very excited about some of the new developments that are coming down the pipeline.

該計劃正在醞釀新的步驟，但我們目前無法分享。但它仍在不斷發展。在第三季度末完成的 Style Connect 的實際部署確實在整個業務中全面實施，第四季度超出了我們的預期。因此，我們確實相信團隊的工作表現出色，並且我們對即將推出的一些新開發項目感到非常興奮。

And are you going to roll out an app for the customers? Because I suppose you don't have an app yet, right?

您打算為客戶推出一款應用程序嗎？因為我想你還沒有應用程序，對吧？

Well, we'll share that -- I will share all of that with you next time.

好吧，我們將分享這一點——下次我將與您分享所有這些。

The next question comes from Dana Telsey with Telsey Advisory Group.

下一個問題來自特爾西諮詢小組的達納·特爾西。

Can you unpack a little bit more about the merchandize margin, what the components were and how you're thinking about that going forward given the improvements that you're seeing in brand reception and what looks to be some full-priced sell-through?

您能否詳細介紹一下商品利潤、組成部分以及考慮到您在品牌接受度方面看到的改善以及看起來全價銷售的情況，您如何看待未來的發展？

And secondly, can you touch on the real estate state aspect of the business, not only openings and closings little bit more, but inside the store, any changes do you experienced given the heavy loyalty component you have to your customer?

其次，您能否談談業務的房地產狀態方面，不僅是開業和關門，而且在商店內部，考慮到您對客戶的高度忠誠度，您經歷過任何變化嗎？

I'll take the first half of that question with respect to margin. In terms of where we're going to have the wins, that's really going to be split fairly evenly between maintain margin and other. As you know, costs or occupancy cost is a component of the other. But, as we -- on the maintain side, as we have better product acceptance, you're going to achieve basis points improvement on the maintain side, and as we increase the sales, we're going to get leverage on the occupancy cost. And we're also with growth in digital you're going to get -- you're going to have leverage on your omnichannel cost where we've invested there as well.

我將回答有關保證金的問題的前半部分。就我們將在哪裡取得勝利而言，這實際上將在維持利潤和其他方面相當平均地分配。如您所知，成本或占用成本是另一個的組成部分。但是，在維護方面，由於我們有更好的產品接受度，您將在維護方面實現基點改進，並且隨著我們增加銷售額，我們將獲得佔用成本的槓桿作用。我們還看到數字化的增長，您將能夠利用我們在全渠道成本上的投資。

In regards in the store, Dana, we have a huge customer loyalty in both of the apparel brands. And evidenced by the acceptance in Q4 and the sales recovery, she is responding to our assortments and to our associates that we have in our store.

就商店而言，Dana，我們在這兩個服裝品牌中都擁有巨大的客戶忠誠度。第四季度的接受度和銷售復甦證明了她正在對我們的品種和我們店裡的員工做出回應。

Any other factoids on the loyalty program, number of loyalty members or increase in response given the newest assortments that since you've been there, Molly?

自從您加入以來，關於忠誠度計劃、忠誠度會員數量或響應增加的任何其他事實，莫莉？

You know, our customer is fiercely loyal and responds quickly and positively when we deliver the products she wants. This quarter we affirmed that for us, we saw our file and our health of our file improve. Thanks, Dana.

您知道，我們的客戶非常忠誠，當我們交付她想要的產品時，他們會快速而積極地做出反應。本季度我們確認，對於我們來說，我們看到我們的文件和文件的健康狀況有所改善。謝謝，達納。

This concludes our question and answer sessions. I would now like to turn the call back over to Bonnie for any closing comments.

我們的問答環節到此結束。我現在想將電話轉回給邦妮以徵求結束意見。

Thank you very much, Anita. In conclusion, we continue to execute on our 3 strategic priorities and now have a strong team and a solid foundation in place to drive growth. I remain very confident in our business, in our market position, and in our opportunity to gain market share. I firmly believe we will deliver long term increased value for all of our shareholders.

非常感謝你，安妮塔。總之，我們繼續執行我們的 3 個戰略重點，現在擁有強大的團隊和堅實的基礎來推動增長。我對我們的業務、我們的市場地位以及我們獲得市場份額的機會仍然充滿信心。我堅信我們將為所有股東帶來長期的增值。

Thank you all very much for participating in today's call and for your kind words on our business. Thanks very much.

非常感謝大家參加今天的電話會議並對我們的業務表示讚賞。非常感謝。

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。