Chico's FAS Inc (CHS) 2022 Q1 法說會逐字稿

Welcome to Chico's FAS First Quarter 2022 Conference Call and Webcast. (Operator Instructions) Please note, this call is being recorded.

歡迎參加 Chico 的 FAS 2022 年第一季度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 call over to Corporate Controller, David Oliver. Mr. Oliver, please go ahead.

我現在想將電話轉給公司財務總監 David Oliver。奧利弗先生，請繼續。

Good morning, and welcome to the Chico's FAS First Quarter 2022 Conference Call and Webcast. For reference, our earnings release can be found on our website at www.chicosfas.com under Press Releases on the Investor Relations page.

早上好，歡迎參加奇科 FAS 2022 年第一季度電話會議和網絡廣播。作為參考，我們的收益發布可以在我們的網站 www.chicosfas.com 投資者關係頁面的新聞稿下找到。

Today's comments will include forward-looking statements regarding our 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 these statements. Important factors that could cause actual results or events to differ materially from those projected or implied by our forward-looking statements are included in today's earnings release or SEC filings and the comments made on this call. We disclaim any obligation to update or revise any information discussed on this call, except as may be otherwise required by law.

今天的評論將包括有關我們當前對我們的業務和行業的預期、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。您不應過度依賴這些陳述。可能導致實際結果或事件與我們的前瞻性陳述中預測或暗示的結果或事件存在重大差異的重要因素包含在今天的收益報告或 SEC 文件以及本次電話會議的評論中。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，除非法律另有要求。

Certain non-GAAP measures may be referenced in today's call. A GAAP to non-GAAP reconciliation schedule is included in our earnings presentation posted this morning on the Chico's FAS Investor Relations page.

今天的電話會議可能會引用某些非公認會計原則措施。我們今天早上在 Chico 的 FAS 投資者關係頁面上發布的收益報告中包含了 GAAP 與非 GAAP 的調節表。

Now I'll turn the call over to our CEO and President, Molly Langenstein.

現在我將把電話轉給我們的首席執行官兼總裁 Molly Langenstein。

Thank you, David, and good morning, everyone. Fiscal '22 is off to a great start, with year-over-year comparable sales up 41% and 11% over 2019, along with EPS that was well above the high end of our guidance. This strong financial performance and continued momentum demonstrates that our strategy is working. We continue to leverage our proven business model and execute against our strategic pillars, and we are seeing the benefits in our results.

謝謝大衛，大家早上好。 22 財年有一個良好的開端，可比銷售額比 2019 年同比增長 41% 和 11%，每股收益也遠高於我們指導的上限。強勁的財務業績和持續的勢頭表明我們的戰略正在發揮作用。我們繼續利用我們經過驗證的商業模式並根據我們的戰略支柱執行，我們正在看到我們的成果所帶來的好處。

After achieving a successful turnaround, our team is focused on delivering our 3-year growth plan, and great progress is underway. Let me highlight some key accomplishments for the first quarter. We posted $0.28 diluted EPS driven by the 41% comparable sales growth, along with significant gross margin expansion and diligent expense control. Our strong first quarter sales growth in both our store and digital channels was boosted by key enhancements in product and marketing that drove full-price selling and higher average unit retails.

成功扭虧為盈後，我們的團隊專注於實現我們的三年增長計劃，並且正在取得巨大進展。讓我重點介紹第一季度的一些主要成就。在可比銷售額增長 41%、毛利率顯著擴張和嚴格的費用控制的推動下，我們公佈了 0.28 美元的攤薄每股收益。我們商店和數字渠道第一季度銷售的強勁增長得益於產品和營銷方面的重大改進，推動了全價銷售和更高的平均單位零售量。

White House Black Market was the standout in the quarter with comparable sales growth of 65% driven by the introduction of new fabrics featuring stretch and versatility, supporting her work-from-anywhere needs. White House Black Market generated higher AUR, elevated full-price selling and positive comparable sales to 2019 driven by continued diligent inventory discipline with on-hand inventory below prepandemic levels.

白宮黑市在本季度表現出色，由於推出了具有彈力和多功能性的新型面料，滿足了她隨時隨地工作的需求，可比銷售額增長了 65%。由於持續嚴格的庫存紀律，現有庫存低於大流行前的水平，白宮黑市產生了更高的 AUR、更高的全價銷售和積極的可比銷售額，與 2019 年相比。

Chico's delivered exceptional sales gain for the quarter, posting comparable sales growth of 52%. Customers responded enthusiastically to product innovation and solutions, featuring fit and comfort. Chico's delivered sales gains on leaner inventory compared to 2019, achieved higher full price sell-through rates, and drove increased AUR. And I'm pleased to report that according to data from market research firm NPD, both White House Black Market and Chico's grew faster than the market this past quarter and added meaningful market share.

Chico's 本季度的銷售額取得了非凡的增長，可比銷售額增長了 52%。客戶對以貼合度和舒適度為特色的產品創新和解決方案反應熱烈。與 2019 年相比，Chico 憑藉庫存減少實現了銷售增長，實現了更高的全價售出率，並推動了 AUR 的增長。我很高興地向大家報告，根據市場研究公司 NPD 的數據，White House Black Market 和 Chico's 在上個季度的增長速度都快於市場，並增加了可觀的市場份額。

Soma posted its seventh consecutive quarter of growth over the prior year, achieving a 0.5% sales increase versus last year's first quarter. Soma's core bra and panty business grew 5% driven by the launch of our patent-pending Smart Bra, Bodify, utilizing first-to-market technology. These solid results in the core business were partially offset by a slowdown in the lounge and cozy categories. Again, referring to NPD data, Soma's growth continues to meaningfully outpace the market in non-sport bras and panties for the quarter. We have a strong position in basic replenishment bra and panty inventory so we can meet our customers' needs.

Soma 連續第七個季度實現同比增長，銷售額較去年第一季度增長 0.5%。 Soma 的核心文胸和內褲業務增長了 5%，這得益於我們正在申請專利的智能文胸 Bodify 的推出，該文胸採用了率先上市的技術。核心業務的強勁業績被休息室和舒適品類的放緩部分抵消。再次參考 NPD 數據，本季度 Soma 的增長繼續明顯超過非運動胸罩和內褲市場。我們在基本補充文胸和內褲庫存方面擁有強大的地位，因此我們可以滿足客戶的需求。

We continue to elevate our marketing, allocating targeted resources to digital, which drove increased traffic and customers to all 3 brands. Existing, reactivated and new customers were up over the prior year with existing and new customers experiencing growth in the mid-teens. Our total customer count increased nearly 15% over last year's first quarter. The average age of new customers is also continuing to trend younger across all 3 brands.

我們繼續提升營銷水平，將有針對性的資源分配到數字領域，這為所有 3 個品牌帶來了流量和客戶的增加。現有客戶、重新激活客戶和新客戶數量均較上一年有所增加，其中現有客戶和新客戶的增長幅度為十幾歲。我們的客戶總數比去年第一季度增加了近 15%。三個品牌的新顧客平均年齡也持續呈年輕化趨勢。

At 40%, the first quarter gross margin rate exceeded our outlook by 230 basis points, and outperformed last year's first quarter by 730 basis points. This was driven by higher average unit retail and full-price sales combined with occupancy leverage partially offset by elevated raw materials and freight costs. We demonstrated ongoing cost discipline with SG&A expenses declining to 31.6% of net sales. The improvement of 300 basis points from last year's first quarter reflects the impact of sales leverage and ongoing benefit of cost savings initiatives implemented in recent years.

第一季度毛利率為 40%，超出我們的預期 230 個基點，比去年第一季度高 730 個基點。這是由於平均單位零售量和全價銷售量的增加以及入住率槓桿的推動，但原材料和貨運成本的上升部分抵消了這一影響。我們展示了持續的成本控制，SG&A 費用下降至淨銷售額的 31.6%。與去年第一季度相比提高了 300 個基點，反映了銷售槓桿的影響以及近年來實施的成本節約舉措的持續效益。

Four clearly defined strategic pillars guided our turnaround and keep us focused to deliver our growth strategy. We are customer-led, product-obsessed, digital-first and operationally excellent.

四個明確定義的戰略支柱指導著我們的轉型，並使我們專注於實現我們的增長戰略。我們以客戶為導向，專注於產品，數字化為先，運營卓越。

Let me update you on each. We are customer-led, focused on community engagement and creating exceptional and memorable customer experiences. Our unique brand portfolio is fueling growth through 3 powerful commerce channels, creating connections, community and collaboration, and enabling our customers to interact with us in a seamless manner. Digital is the first impression of our brand and an efficient platform to teach and inspire customers about our merchandise.

讓我為您更新每一項的最新情況。我們以客戶為主導，專注於社區參與並創造卓越且難忘的客戶體驗。我們獨特的品牌組合通過 3 個強大的商業渠道推動增長，建立聯繫、社區和協作，並使我們的客戶能夠以無縫的方式與我們互動。數字化是我們品牌的第一印象，也是向顧客傳授和啟發我們的商品的有效平台。

Our physical stores serve as community centers for both connections and self-discovery as well as a home for interactions with our stylists and bra experts. And finally, our social stylists can expertly connect the 2. Each of our brands has fiercely loyal customers, and we laid the groundwork last year with a new customer data platform that will fuel our new loyalty programs.

我們的實體店是聯繫和自我發現的社區中心，也是與造型師和胸罩專家互動的場所。最後，我們的社交造型師可以熟練地將兩者聯繫起來。我們的每個品牌都擁有非常忠誠的客戶，去年我們通過新的客戶數據平台奠定了基礎，該平台將為我們新的忠誠度計劃提供動力。

Our existing loyalty programs already have some of the highest participation rates in retail at over 90%. We launched our new Soma loyalty program in the fourth quarter last year and plan to launch new loyalty programs for our apparel brands in the second quarter of this year. We know our customer and look forward to further solidifying our already strong relationships through these new programs.

我們現有的忠誠度計劃已經在零售業中擁有最高的參與率，超過 90%。我們在去年第四季度推出了新的 Soma 忠誠度計劃，併計劃在今年第二季度為我們的服裝品牌推出新的忠誠度計劃。我們了解我們的客戶，並期待通過這些新計劃進一步鞏固我們業已牢固的關係。

And we are product-obsessed, delivering distinctive, innovative, premium, best-in-class goods that provide beautiful solutions, giving our customer confidence and joy. At each brand, we are focused on driving AUR and full-price sales growth. At White House Black Market, customers enthusiastically responded to versatile dressing in seasonless fabrics, including timeless tailoring, with the introduction of stretch crepe and luxe stretch knit tailoring, which drove for closet refresh for both return-to-office and work-from-home wardrobes.

我們專注於產品，提供獨特、創新、優質、一流的產品，提供精美的解決方案，給我們的客戶帶來信心和喜悅。對於每個品牌，我們都專注於推動 AUR 和全價銷售的增長。在白宮黑市，顧客對採用不季節面料製成的多功能著裝反應熱烈，其中包括永恆的剪裁，推出了彈力縐紗和奢華彈力針織剪裁，這推動了重返辦公室和在家工作的衣櫥煥然一新衣櫃。

Premium denim was strong with the launch of new Girlfriend style and inspiring dresses were a huge win for the quarter. At Chico's, we are reinvigorating growth through fit, comfort and wearability. With products like our no-iron shirt franchise, our travelers collection and pants and denim featuring our So Slimming bottom and 360-fit paneling. At both Chico's and White House Black Market, nearly every category grew significantly over last year, demonstrating that product enhancements and innovation are moving both apparel brands forward. In fact, customers appreciate our elevated quality and are receptive to paying for value across our entire brand portfolio.

隨著新女友風格的推出，優質牛仔布表現強勁，鼓舞人心的連衣裙是本季度的巨大勝利。在 Chico's，我們通過合身、舒適和耐磨來重振增長。我們的免燙襯衫系列、旅行者係列以及採用 So Slimming 底部和 360 度貼合鑲片的褲子和牛仔布等產品。在奇科和白宮黑市，幾乎每個類別都比去年大幅增長，這表明產品改進和創新正在推動這兩個服裝品牌向前發展。事實上，客戶欣賞我們的高品質，並願意為我們整個品牌組合的價值付費。

At Soma, we continue to make investments in cutting-edge product innovation and comfort solutions in panties, sleep, active, and especially bras. We are the destination for all her bra needs, and we have developed 6 key bra franchises, including our newest game-changing Smart Bra, Bodify that includes proprietary technology that adjusts to a woman's individual body measurement as they fluctuate throughout the month. At Soma, we are well positioned with replenishment and basic inventory to drive growth, which is especially critical in the foundations business.

在 Soma，我們繼續投資於內褲、睡眠褲、運動褲，尤其是胸罩的尖端產品創新和舒適解決方案。我們是滿足她所有胸罩需求的目的地，我們開發了 6 個關鍵胸罩系列產品，包括我們最新的改變遊戲規則的智能胸罩 Bodify，它包含專有技術，可以根據女性個人身體尺寸在一個月內的波動進行調整。在 Soma，我們在補貨和基本庫存方面處於有利地位，可以推動增長，這對於基礎業務尤其重要。

We are digital-first, leveraging technology to engage and deliver to our customers across channels by strengthening our core platform, data-driven insights and decision-making. In the quarter, we generated strong year-over-year double-digit growth. Our proprietary digital tools continue to fuel sales, and engagement is growing. Combined digital tools grew 26% over last year's first quarter. Customers using these tools like Style Connect and MyCloset are more engaged and have higher conversion rates, units per transaction and average order values.

我們以數字為先，通過加強我們的核心平台、數據驅動的洞察和決策，利用技術跨渠道吸引客戶並為客戶提供服務。本季度，我們實現了強勁的兩位數同比增長。我們專有的數字工具繼續推動銷售，參與度也在不斷提高。綜合數字工具比去年第一季度增長了 26%。使用 Style Connect 和 MyCloset 等工具的客戶參與度更高，轉化率、每筆交易單位和平均訂單價值也更高。

For example, customers using MyCloset have a 5x higher conversion rate than the site average and a significantly higher AOV than those not using the feature. Multichannel customers spend more than 3x single-channel customers, and this group continues to grow in customer count, sales and spend per customer in the first quarter. All 3 of our brands have now successfully launched apps and sales from the apps are tracking at 2x planned driven by higher average order values. Sales generated are approximately 15% higher than the site average. We are pleased that the apps have garnered a 4.8 star rating on the Apple app store. We will continue to invest in technology and talent, enhancing AI-driven customer engagement and science-based marketing. Our digital evolution continues.

例如，使用 MyCloset 的客戶的轉化率比網站平均水平高 5 倍，並且 AOV 明顯高於不使用該功能的客戶。多渠道客戶的支出是單渠道客戶的 3 倍以上，並且第一季度該群體的客戶數量、銷售額和每位客戶的支出持續增長。我們的所有 3 個品牌現已成功推出應用程序，並且由於平均訂單價值較高，這些應用程序的銷售額正達到計劃的 2 倍。產生的銷售額比網站平均水平高出約 15%。我們很高興這些應用程序在 Apple 應用程序商店中獲得了 4.8 星的評級。我們將繼續投資於技術和人才，增強人工智能驅動的客戶參與度和基於科學的營銷。我們的數字化發展仍在繼續。

We strive for operational excellence. During 2021 and continuing into first quarter of 2022, we prudently managed our inventory, supply chain, expenses and real estate. We also generated healthy cash flow and delivered a strong bottom line. All of this shows alignment and commitment in operating our business to the highest standards. During the quarter, we had exceptional gross margin performance driven by strength in full-price sales, higher AURs and improved leverage of occupancy costs on higher sales despite increases in raw materials.

我們努力追求卓越運營。 2021 年至 2022 年第一季度，我們審慎管理庫存、供應鏈、費用和房地產。我們還產生了健康的現金流並實現了強勁的盈利。所有這些都表明我們按照最高標準運營業務的一致性和承諾。本季度，儘管原材料價格上漲，但由於全價銷售強勁、AUR 上升以及佔用成本槓桿率提高，銷售額增加，我們的毛利率表現出色。

We actively manage the production calendar, inventory flow and the supply chain challenges to assure goods arrived on time, while controlling freight costs. We are focusing on continually improving our sourcing logistics and operational processes to help drive efficiencies. For example, the decision to extend our production calendar by 10 weeks has allowed us to reduce costly airfreight usage and even reduce year-over-year inbound logistic costs. Sales leverage and ongoing cost discipline efforts resulted in our best SG&A rate performance in several years.

我們積極管理生產日曆、庫存流和供應鏈挑戰，以確保貨物按時到達，同時控制貨運成本。我們致力於不斷改進我們的採購物流和運營流程，以幫助提高效率。例如，我們決定將生產日曆延長 10 週，這使我們能夠減少昂貴的空運使用量，甚至降低逐年入境物流成本。銷售槓桿和持續的成本控制努力使我們實現了幾年來最好的銷售管理及行政費用率表現。

Now let me turn the call over to PJ to update you on our financial performance. PJ?

現在讓我將電話轉接給 PJ，向您介紹我們的最新財務業績。睡衣？

Thank you, Molly, and good morning, everyone. Our powerful portfolio of 3 unique brands continues to outperform, with each brand contributing to growth and profitability and fueling continued momentum. During the first quarter, we achieved 41% comparable sales growth over 2021, and we surpassed 2019 comparable sales by 11%. This performance was driven by the newness and innovation of our assortments and enhanced marketing efforts that drove full-price selling. First quarter gross margin was 40% compared to 32.7% last year. The 730 basis point improvement in gross margin rate primarily reflected higher AUR combined with occupancy leverage, both of which more than offset elevated raw material and freight costs.

謝謝你，莫莉，大家早上好。我們由 3 個獨特品牌組成的強大產品組合繼續表現出色，每個品牌都對增長和盈利能力做出了貢獻，並推動了持續的發展勢頭。第一季度，我們的可比銷售額比 2021 年增長了 41%，比 2019 年可比銷售額增長了 11%。這一業績是由我們品種的新穎性和創新以及推動全價銷售的加強營銷努力推動的。第一季度毛利率為 40%，去年同期為 32.7%。毛利率提高 730 個基點主要反映了較高的 AUR 和入住率槓桿，兩者都足以抵消原材料和貨運成本的上升。

SG&A expenses for the quarter totaled $171 million or 31.6% of sales compared to 34.6% of sales in 2021, our best first quarter rate in 5 years. Higher sales, coupled with proactive expense management, have enabled us to realize meaningful leverage that will give us more financial flexibility as we continue to grow and invest in all 3 brands. For the quarter, we generated $45 million of operating income and posted our highest operating margin in 5 years at 8.4%. We also generated $57 million of EBITDA, nearly a 10x increase over last year, clear evidence of the strength of our operating model, which focuses equally on sales, earnings growth and cash flow.

本季度的 SG&A 費用總計 1.71 億美元，佔銷售額的 31.6%，而 2021 年佔銷售額的 34.6%，是我們 5 年來最好的第一季度比率。更高的銷售額，加上積極主動的費用管理，使我們能夠實現有意義的槓桿作用，隨著我們繼續發展和投資所有三個品牌，這將為我們帶來更大的財務靈活性。本季度，我們實現了 4500 萬美元的營業收入，營業利潤率為 8.4%，為 5 年來的最高水平。我們還實現了 5700 萬美元的 EBITDA，比去年增長了近 10 倍，這清楚地證明了我們同樣注重銷售、盈利增長和現金流的運營模式的實力。

Shifting to our balance sheet and the strength of our financial position, we ended the quarter with cash of $104 million and capacity on our credit facility of $157 million, equating to total liquidity of over $260 million. This provides us the flexibility to manage our current business while making investments to propel future growth.

轉向我們的資產負債表和財務狀況實力，本季度結束時，我們的現金為 1.04 億美元，信貸額度為 1.57 億美元，相當於流動資金總額超過 2.6 億美元。這使我們能夠靈活地管理當前業務，同時進行投資以推動未來增長。

At the end of the first quarter, inventories totaled $326 million compared to $210 million at the end of last year's first quarter. The $116 million, or 55% increase from last year, primarily reflects on-hand inventories to align with higher consumer demand and an increase in in-transit inventories due to extended transit times, which are currently more than double what we have seen in prior years.

截至第一季度末，庫存總額為 3.26 億美元，而去年第一季度末庫存為 2.1 億美元。 1.16 億美元，即比去年增長 55%，主要反映了現有庫存，以適應更高的消費者需求，以及由於運輸時間延長而導致的在途庫存增加，目前是我們之前看到的兩倍多年。

Now looking at sales relative to inventory levels of each brand. White House Black Market's on-hand inventory was up 46% and well in line with total sales growth of 62.5%. Higher in-transit is well positioned to ensure steady flow of newness to meet demand through summer and early fall. Chico's on-hand inventory was up 43%, and also well in line with total sales growth of 49.4% in the first quarter. In-transit inventory for Chico's also represents summer and early fall assortments that we expect to deliver on time to satisfy planned demand for the second quarter and back half of the year.

現在看看每個品牌相對於庫存水平的銷售額。白宮黑市的現有庫存增長了 46%，與 62.5% 的總銷售額增長完全一致。較高的運輸途中位置可以確保新鮮事物的穩定流動，以滿足整個夏季和初秋的需求。 Chico 的現有庫存增長了 43%，也與第一季度 49.4% 的總銷售額增長保持一致。 Chico's 的在途庫存還包括夏季和初秋品種，我們預計將按時交付以滿足第二季度和今年下半年的計劃需求。

Total Soma inventory, including on-hand and in-transit for the first quarter, was up just over 40%, and 95% comprised of core bras and panties in basic replenishment colors and styles. In short, we believe our inventory is well positioned relative to planned demand for each brand for the balance of the year.

Soma 的總庫存（包括第一季度的現有庫存和在途庫存）增長了 40% 以上，其中 95% 是基本補貨顏色和款式的核心胸罩和內褲。簡而言之，我們相信我們的庫存相對於今年剩餘時間每個品牌的計劃需求而言處於有利位置。

Now let's shift to real estate. We continue to actively manage our real estate portfolio to enhance overall store and company profitability. It is important to note that our customers love to engage with our brands in the communities where they live and our digital sales trend much higher in markets where we have a physical presence. We view our current real estate footprint as a strategic asset and competitive advantage given our prime locations across the U.S., and we plan to optimize this advantage over the coming years.

現在讓我們轉向房地產。我們繼續積極管理我們的房地產投資組合，以提高整體商店和公司的盈利能力。值得注意的是，我們的客戶喜歡在他們居住的社區與我們的品牌互動，而在我們有實體業務的市場中，我們的數字銷售趨勢要高得多。鑑於我們在美國的黃金地段，我們將當前的房地產足跡視為戰略資產和競爭優勢，並且我們計劃在未來幾年優化這一優勢。

At the end of the first quarter, we operated 1,264 boutiques compared to 1,410 boutiques for the same period in 2019. Despite this 10% reduction in the store fleet, total sales were 4.5% above the first quarter of 2019. Going forward, we plan to open up to 30 Soma stand-alone stores in the back half of this year. And although we are targeting up to 40 store closures in both Chico's and White House Black Market, store performance continues to improve, and this number will remain a moving target.

截至第一季度末，我們經營了 1,264 家精品店，而 2019 年同期為 1,410 家精品店。儘管門店數量減少了 10%，但總銷售額仍比 2019 年第一季度增長 4.5%。展望未來，我們計劃今年下半年將開設多達30家Soma獨立店。儘管我們的目標是在奇科黑市和白宮黑市關閉最多 40 家商店，但商店業績仍在持續改善，而且這一數字仍將是一個不斷變化的目標。

Now I will give some color on our outlook for the second quarter and full year. We expect strong top line growth for the year, ahead of our 12.5% compound annual growth rate target under our current long-term plan. All 3 brands are well positioned for success with innovative product launches that are resonating with our loyal customer base while attracting new customers across a wider demographic spectrum. We see opportunity for continued gross margin expansion through higher AUR and occupancy leverage. However, supply chain disruptions and inflation are expected to remain a challenge that we are working to navigate as we successfully did in 2021. We remain highly disciplined on expense control and have a lean cost structure. Although we are seeing labor inflation in our stores and distribution centers, we view both of these costs as investments that are closely linked to top line growth.

現在我將闡述我們對第二季度和全年的展望。我們預計今年的營收將實現強勁增長，超過我們當前長期計劃下 12.5% 的複合年增長率目標。所有 3 個品牌都已做好充分準備，推出創新產品，與我們忠實的客戶群產生共鳴，同時吸引更廣泛人群的新客戶，從而取得成功。我們看到了通過提高 AUR 和入住率槓桿來持續擴大毛利率的機會。然而，供應鏈中斷和通貨膨脹預計仍將是我們正在努力應對的挑戰，就像我們在 2021 年成功做到的那樣。我們在費用控制方面仍然嚴格自律，並擁有精益的成本結構。儘管我們的商店和配送中心出現了勞動力通脹，但我們將這兩項成本視為與營收增長密切相關的投資。

And marketing, our second largest expense next to labor, is one that we can adjust as the environment dictates. We are also excited about the selective investments we are making in e-commerce and marketing platforms that are supporting all 3 brands and creating a closer, more personalized relationship with our customers. This will be key in driving both traffic and conversion across channels to complement higher AURs. We forecast our cash flow and liquidity will remain strong, and provide us with the flexibility to execute on our strategic plan, and continue to navigate the current competitive retail landscape.

營銷是我們僅次於勞動力的第二大支出，我們可以根據環境的要求進行調整。我們還對我們在電子商務和營銷平台上進行的選擇性投資感到興奮，這些平台支持所有 3 個品牌，並與客戶建立更緊密、更個性化的關係。這對於推動跨渠道流量和轉化以補充更高的 AUR 至關重要。我們預測我們的現金流和流動性將保持強勁，並使我們能夠靈活地執行我們的戰略計劃，並繼續駕馭當前競爭激烈的零售格局。

With that, for the second quarter, we expect total sales of $535 million to $550 million, gross margin rate to be in the 38.7% to 39.4% range, SG&A rate to be in the 31.2% to 31.6% range, an effective tax rate of approximately 26% and diluted EPS of $0.21 to $0.26 per share. With our first quarter exceeding expectations, we have raised our full year 2022 outlook and now expect total sales of $2.13 billion to $2.16 billion, gross margin rate to be in the 38.3% to 38.6% range, SG&A rate to be in the 32.6% to 32.9% range, an effective tax rate of approximately 26% and diluted EPS of $0.64 to $0.74 per share. Our planned capital expenditures for fiscal 2022 are $65 million to $70 million, allocated approximately 1/3 for digital investments, 1/3 for new Soma stores and 1/3 for supply chain, store upgrades and facilities.

因此，我們預計第二季度總銷售額為 5.35 億至 5.5 億美元，毛利率將在 38.7% 至 39.4% 範圍內，SG&A 率將在 31.2% 至 31.6% 範圍內，有效稅率約 26%，稀釋後每股收益為 0.21 美元至 0.26 美元。由於第一季度超出預期，我們上調了 2022 年全年展望，目前預計總銷售額為 21.3 億美元至 21.6 億美元，毛利率將在 38.3% 至 38.6% 範圍內，SG&A 率將在 32.6% 至 32.6% 之間。 32.9% 範圍，有效稅率約為 26%，稀釋後每股收益為 0.64 美元至 0.74 美元。我們計劃 2022 財年的資本支出為 6500 萬至 7000 萬美元，其中約 1/3 用於數字投資，1/3 用於新 Soma 商店，1/3 用於供應鏈、商店升級和設施。

In closing, we remain confident in our ability to take advantage of our existing momentum and deliver on our 3-year plan we laid out in March. Our plan targets over $2.5 billion in sales by 2024 and includes more than $1 billion of digital sales. We are also planning to reach an annual gross margin of 40% and a minimum operating margin of 7.5%. And we plan to generate cumulative cash from operations of over $400 million. All this would help support an EPS target growth rate in excess of 15% annually.

最後，我們對利用現有勢頭並實現我們三月份制定的三年計劃的能力仍然充滿信心。我們的計劃目標是到 2024 年銷售額超過 25 億美元，其中數字銷售額超過 10 億美元。我們還計劃年毛利率達到 40%，最低營業利潤率達到 7.5%。我們計劃從運營中累計產生超過 4 億美元的現金。所有這些都將有助於支持每股收益每年超過 15% 的目標增長率。

We look forward to keeping you posted on our progress. Now I'll turn the call back over to the operator. Operator?

我們期待向您通報我們的進展。現在我將把電話轉回給接線員。操作員？

(Operator Instructions) Today's first question comes from Susan Anderson of B. Riley.

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

Alec Legg calling for Susan. Nice job on the quarter. My first question, just on the comps. So they were all positive versus 2019. But I'm just curious if you could talk about the store traffic versus conversion and the ADS and then maybe even the traffic of the mall stores versus off-mall stores?

亞歷克·萊格打電話給蘇珊。本季度工作做得很好。我的第一個問題，只是關於比較。因此，與 2019 年相比，它們都是積極的。但我很好奇，您是否可以談談商店流量與轉化率和 ADS，甚至商場商店與商場外商店的流量？

Absolutely. And thank you, Alec. So first of all, we are excited about what we're seeing in the business and what we're seeing in the customer behavior. As it specifically relates to AUR and ADS, we are seeing strong customer demand across the 3 brands. In fact, if we look at our spend per customer, our spend per customer is up 22% year-over-year, and we are experiencing higher frequency and bigger baskets. We are also exhibiting strong healthy customer when we look at the Q1 customer versus what the rolling 12 are, that we are actually seeing stronger behavior in AUR and ADS.

絕對地。謝謝你，亞歷克。首先，我們對在業務中看到的情況以及在客戶行為中看到的情況感到興奮。由於它與 AUR 和 ADS 特別相關，我們看到這 3 個品牌的客戶需求強勁。事實上，如果我們看看每位客戶的支出，我們的每位客戶的支出同比增長了 22%，而且我們正在經歷更高的頻率和更大的購物籃。當我們比較第一季度的客戶與滾動的 12 個客戶時，我們還展示了強大的健康客戶，我們實際上看到 AUR 和 ADS 的行為更強。

Perfect. And then just a follow-up on the gross margins for the year. I guess how big are you modeling in excess freight costs? And is there anything we should be mindful of as we enter the back half of this year, such as excess freight costs paid in the back half of 2021?

完美的。然後是今年毛利率的後續情況。我猜你對超額運費進行建模有多大？進入今年下半年，有哪些需要注意的地方，比如2021年下半年支付的超額運費？

Yes. Thanks, Alec. I'll take that one. So for this quarter, we reached 40%, and that was -- which was higher than last year and 2019. It was driven primarily by AUR, which drove about 400 basis points. That was offset by about 340 basis points of raw material and freight costs. However, I would note that the majority of that was raw materials and less so on the freight impact. For the quarter and for the back half of the year, we are managing our mix of ocean and air.

是的。謝謝，亞歷克。我會接受那個。因此，本季度我們達到了 40%，高於去年和 2019 年。這主要是由 AUR 推動的，AUR 推動了約 400 個基點。這被約 340 個基點的原材料和運費成本所抵消。然而，我要指出的是，其中大部分是原材料，而對貨運的影響則較少。在本季度和下半年，我們正在管理海運和空運的組合。

So although we expect continued elevated impact from inflation, we do expect the growth to slow and even, in some respects, be lower than last year because we are using more ocean and less freight. And that's a function of us extending our calendar by 10 weeks and just managing the inventory better. So AUR is outpacing average unit cost. So we're going to continue to manage that. And again, throughout the year, we do expect elevated costs. But again, we're working through it and managing around it.

因此，儘管我們預計通脹的影響將持續加大，但我們確實預計增長將放緩，甚至在某些方面低於去年，因為我們使用了更多的海運和更少的貨運。這是我們將日曆延長 10 週並更好地管理庫存的結果。因此，AUR 超過了平均單位成本。所以我們將繼續管理這一點。而且，我們確實預計全年成本都會上升。但同樣，我們正在解決這個問題並圍繞它進行管理。

And our next question today comes from Dana Telsey of Telsey Advisory.

今天我們的下一個問題來自 Telsey Advisory 的 Dana Telsey。

Nice to see the progress. As you think about supply chain and price increases, where are you in that journey for each of the brands? And I think, Molly, you had mentioned some of the slowdown in loungewear that were some of the pandemic-type clothing. How are you planning that going forward? And is space being reallocated?

很高興看到進展。當您考慮供應鍊和價格上漲時，您對每個品牌的旅程處於什麼階段？我想，莫莉，你提到了家居服的一些放緩，其中一些是流行病類型的服裝。今後您打算如何進行？空間正在重新分配嗎？

Yes. Dana, thank you. The supply chain challenges that we've experienced all the way through 2021 have obviously continued through '22, and we have been nimble on responding to these challenges by taking positions in basics and shifting the calendar to mitigate the extended in-transit times. We will continue to respond to these new challenges as they arise, and we'll keep actively managing our production calendar to avoid the costly airfreight until we see the situation changing.

是的。達納，謝謝你。我們在 2021 年一直經歷的供應鏈挑戰顯然一直持續到 2022 年，我們通過在基礎方面採取立場並改變日曆以減少運輸時間的延長，靈活地應對了這些挑戰。我們將繼續應對這些出現的新挑戰，並且我們將繼續積極管理我們的生產日曆，以避免昂貴的空運，直到我們看到情況發生變化。

And as PJ alluded to, we are seeing a favorable based upon our mix in ocean and air, and we'll continue to manage that from a supply chain standpoint. As it relates to categories and how they are shifting, this is something that is just consistent in our business that there are shifts in the business and staying close to the consumer behavior is how we manage that. So the lounge categories that you mentioned within Soma, we have shifted to our core categories in bras and panties. And if you look at for the first quarter, according to NPD data, the consumer demand for non-sport bras and panties fell, while Soma's share in these categories continued to grow.

正如 PJ 所提到的，我們看到了基於我們的海洋和空中組合的有利條件，我們將繼續從供應鏈的角度來管理這一點。由於它與品類及其變化方式相關，因此我們的業務一直在發生變化，而密切關註消費者行為是我們管理這一變化的方式。因此，您在 Soma 中提到的休息室類別，我們已轉向胸罩和內褲的核心類別。如果你看看第一季度，根據 NPD 數據，消費者對非運動胸罩和內褲的需求下降，而 Soma 在這些類別中的份額持續增長。

In fact, we had a double-digit spread between the market decline and Soma's growth, which is evidence that our strategy is working to continue to drive our core and bra and panty business. And for the quarter, even though we closed at a 0.5% increase, the core and bra and panty business grew 5% over last year based upon our launch of the Bodify, which is one of our 6 new franchises within bras. So we'll continue to be able to drive those core categories to offset what happened in lounge.

事實上，我們的市場下滑和 Soma 的增長之間存在兩位數的差距，這證明我們的戰略正在努力繼續推動我們的核心業務以及胸罩和內褲業務。在本季度，儘管我們以 0.5% 的增長率收盤，但由於我們推出了 Bodify（這是我們在胸罩領域的 6 個新特許經營產品之一），核心業務以及胸罩和內褲業務比去年增長了 5%。因此，我們將繼續推動這些核心類別的發展，以抵消休息室發生的情況。

Got it. And then just as you think about planning inventories as we go through the year, how do you look at the cadence of inventory? It's up 55% now. How do you think about that cadence of growth going forward?

知道了。然後，正如您在一年中考慮計劃庫存一樣，您如何看待庫存節奏？現在上漲了55%。您如何看待未來的增長節奏？

We believe our inventories are appropriately assorted and well positioned for growth in each brand. In particular, if you look at the apparel inventories, we are down 6% compared to the first quarter of fiscal 2019. And the total Soma inventory, including on-hand and in-transit, was up 40% over last year.

我們相信我們的庫存分類得當，並且為每個品牌的增長做好了準備。特別是，如果你看一下服裝庫存，就會發現與 2019 財年第一季度相比，我們下降了 6%。而 Soma 的總庫存（包括現有庫存和在途庫存）比去年增長了 40%。

But if you look at the composition of that, Dana, you can see that 95% of that inventory is comprised of core bras and panties, in basic replenishment colors and styles. Our markdown inventory is actually down double digits compared to last year. So anything that we had in the lounge categories that we, in the first quarter, has been liquidated. So our inventory position that is over is in core panties and bras, which are not a liability.

但如果你看看它的構成，Dana，你會發現 95% 的庫存都是由核心胸罩和內褲組成，具有基本的補充顏色和款式。與去年相比，我們的降價庫存實際上下降了兩位數。因此，我們在第一季度在休息室類別中擁有的所有內容都已被清算。因此，我們的庫存頭寸是核心內褲和胸罩，這不是負債。

And our next question today comes from Marni Shapiro of Retail Tracker.

今天我們的下一個問題來自 Retail Tracker 的 Marni Shapiro。

Congratulations on a great quarter and really beautiful assortments. PJ, if you could just walk through quickly again. I think you said you're going to open up, up to 30 Somas, close 40 each White House Black Market. If you just can confirm that? And are you opening up any White House or Chico's?

祝賀一個偉大的季度和非常漂亮的品種。 PJ，如果你能再快點走過去就好了。我想你說過要開放最多 30 個 Somas，每個白宮黑市關閉 40 個。如果你能確認一下嗎？你們會開放白宮或奇科的白宮嗎？

And then, Molly, if you could just talk about kind of following up on what Dana was saying, spring/summers feels like the peak event, wedding period, White House's dresses have been absolutely beautiful. Chico's as well. So how are you thinking about the mix of kind of dress up to more wear-to-work in the back half of the year, do you feel well positioned for that?

然後，莫莉，如果你能談談達納所說的後續的話，春夏感覺就像是高峰活動、婚禮時期，白宮的禮服絕對漂亮。奇科也一樣。那麼，你如何看待今年下半年將正裝與更多工作著裝的搭配，你覺得自己已經做好了準備嗎？

So thanks, Marni. So on the store openings, so with regards to Soma, we're planning to open up to 30 in the back half of this year. We've identified 28. We're working on potentially 2 more. So -- and then going forward, we do expect to continue to open Soma pursuant to our 3-year plan. With regards to White House and Chico's, we're targeting actually closing up to 40 mall-based Chico's and White House. We're not contemplating opening additional stores. But again, managing our fleet is an ongoing exercise, but that's the cadence that's in the plan right now for the fleet.

謝謝，瑪尼。在開店方面，就 Soma 而言，我們計劃在今年下半年開到 30 家。我們已經確定了 28 個。我們正在研究另外 2 個。因此，展望未來，我們確實希望根據我們的三年計劃繼續開放 Soma。至於 White House 和 Chico's，我們的目標是關閉多達 40 家位於購物中心的 Chico's 和 White House。我們不考慮開設更多商店。但同樣，管理我們的機隊是一項持續的工作，但這就是機隊目前計劃中的節奏。

And Marni, as it relates to spring/summer mix and dress up in the back half of the year, we're feeling very good about the position of our inventory. We have been very prudent about remaining lean in the apparel categories or actually in the fashion categories, is probably the best way to say it. We spent a tremendous amount of time looking at new fabrications to launch in both of the apparel brands. And those are not unique to a season, but really are things that have a lot of stretch so that they can last for any type of occasion, whether she is at home working or whether she is in the office or even versatility in our dresses.

至於 Marni，因為它與下半年的春夏混搭和裝扮有關，所以我們對庫存狀況感覺非常好。我們一直非常謹慎地在服裝類別或實際上在時尚類別中保持精簡，這可能是最好的說法。我們花費了大量時間尋找在這兩個服裝品牌中推出的新面料。這些並不是某個季節所獨有的，而是具有很大彈性的東西，因此它們可以適合任何類型的場合，無論她是在家工作還是在辦公室，甚至是我們衣服的多功能性。

In particular, if you look at the new category that we've launched for the second quarter in Chico's, our dresses have a tremendous amount of versatility and can take you anywhere. So we're very focused on versatility to be able to manage how the customer is dressing in a much more broad manner. We believe that this is not only a customer change and how she wants to dress, but we believe this is really just a sea change on how we need to respond to the consumer.

特別是，如果您看看我們在 Chico's 第二季度推出的新類別，您會發現我們的連衣裙具有巨大的多功能性，可以帶您去任何地方。因此，我們非常注重多功能性，以便能夠以更廣泛的方式管理客戶的著裝方式。我們相信，這不僅是客戶和她想要的著裝方式的改變，而且我們相信這實際上只是我們需要如何回應消費者的巨大變化。

So as that spring/summer mix, we're very pleased with where our inventory levels are today. And as we look at the back half of this year, we have a balance of basic categories along with fashion. We have some new things that are in the pipeline as well. We just launched shoes in Chico's. We also have a new linen fabrication that we just launched that we're excited about. We also have something new that's coming in White House in July. And also in Soma, we also continue that innovation pipeline as well. We launched a new Bodify demi. And we also have some new online things that are coming later on this quarter. So we're going to continue driving that innovation pipeline to be able to drive consumer demand and also maintain higher AURs.

因此，對於春夏組合，我們對目前的庫存水平非常滿意。回顧今年下半年，我們在基本品類和時尚品類之間取得了平衡。我們還有一些新的東西正在醞釀中。我們剛剛在 Chico's 推出了鞋子。我們還剛剛推出了一種新的亞麻製品，我們對此感到興奮。七月份，我們還將在白宮推出一些新產品。同樣在索馬，我們也繼續創新。我們推出了新的 Bodify 半身。我們還將在本季度晚些時候推出一些新的在線產品。因此，我們將繼續推動創新渠道，以推動消費者需求並維持更高的 AUR。

And our next question today comes from Janet Kloppenburg with JJK Research Associates.

今天我們的下一個問題來自 JJK Research Associates 的 Janet Kloppenburg。

Let me add my congratulations. I wanted to just follow up a little bit on Soma, and be clear that the lounge -- so lounge, and what other category, Molly, that softened up. Did you expect that and are the inventories for the back half planned down? Or do you see the category bouncing as we go into the remainder of the year?

讓我補充一下我的祝賀。我想對索瑪進行一些跟進，並明確休息室——所以休息室，以及其他類別，莫莉，軟化了。您是否預料到了這一點？下半年的庫存計劃是否減少了？或者說，隨著今年剩餘時間的到來，您認為該類別會出現反彈嗎？

And in terms of Chico's and White House Black Market, I was just wondering what level of price increases you've taken? What inning we're in on that? And how much you're thinking about the potential for the promotional environment to heat up as we go through the rest of the year with perhaps other competitors having too much inventory and maybe not inventory that's as appropriate as yours, inventory that may not be resonating?

就奇科和白宮黑市而言，我只是想知道你們的價格上漲幅度是多少？我們現在處於第幾局？當我們度過今年餘下的時間時，您有多少考慮促銷環境升溫的潛力，也許其他競爭對手擁有太多庫存，也許沒有像您一樣合適的庫存，庫存可能不會引起共鳴？

Yes. Thank you, Janet. As regards to the health of the inventory, we've taken the lounge and cozy categories that we needed to that we saw really is the change in Q1. Where we see opportunity is in the core categories. And in the back half of the year for Soma, we will continue to focus on our core categories of bras and panties and sleep. And that's where we're focused. And we believe that we have a inventory and receipts that are aligned to the demand that we see in the back half of the year that PJ mentioned in the outlook.

是的。謝謝你，珍妮特。至於庫存的健康狀況，我們已經採取了我們需要的休息室和舒適類別，我們看到的確實是第一季度的變化。我們看到的機會在於核心類別。今年下半年，Soma 將繼續專注於胸罩、內褲和睡眠等核心品類。這就是我們關注的重點。我們相信，我們的庫存和收入與 PJ 在展望中提到的下半年的需求相符。

As it relates to apparel and price increases, and what we've taken in terms of tickets, the biggest thing that we focused on, Janet, is actually newness in the assortment, and not just taking like-for-like items up in prices. So it's been very important that we've stayed focused on this innovation pipeline that we're offering new fit features in our bottoms. We're offering new bodies, and we're offering new fabrications and even new categories in our apparel brands so that -- and even in the Bodify launch in Soma, so that we are able to demonstrate to customers that this is what the product does, this is why it's extra value, and we are not seeing any customers that are having a challenge with the better quality garments that we're giving them, and that they are paying for that price point. And that is evidenced in our units being up, our AUR being up and our ADS being up and also spend per customer being up double digits across the board in addition to our customer count being up in all 3 brands. So we believe we have taken the necessary steps there.

由於它涉及服裝和價格上漲，以及我們在門票方面所採取的措施，珍妮特，我們關注的最重要的事情實際上是品種的新穎性，而不僅僅是提高同類商品的價格。因此，我們一直專注於這一創新渠道，在我們的底部提供新的合身功能，這一點非常重要。我們正在提供新的身體，我們正在提供新的面料，甚至在我們的服裝品牌中提供新的類別，甚至在索馬推出的 Bodify 中，這樣我們就能夠向客戶證明這就是我們的產品確實如此，這就是為什麼它具有額外的價值，而且我們沒有看到任何客戶對我們提供的質量更好的服裝提出挑戰，並且他們正在為這個價格點付費。這一點可以從我們的單位數量、AUR 和 ADS 的上升中得到證明，此外，除了所有 3 個品牌的客戶數量都在增加之外，每個客戶的支出也全面增長了兩位數。因此，我們相信我們已經採取了必要的步驟。

As it relates to promotion, we have -- we believe that lean inventories, in particular, in fashion categories, are the key to not going backwards on promotion. We have actually taken more promotion out of the calendar in Q1 versus last year, and are remaining to stay focused on better product, better storytelling, to be able to manage that. So we are going to remain vigilant, but we are also going to stay very close to the customer behavior. And currently, what we have not seen is we have not seen a change in the customer behavior.

就促銷而言，我們相信精益庫存，尤其是時尚品類的庫存，是促銷不倒退的關鍵。實際上，與去年相比，我們在第一季度的日曆中進行了更多促銷，並且仍然專注於更好的產品、更好的故事講述，以便能夠做到這一點。因此，我們將保持警惕，但我們也將密切關注客戶的行為。目前，我們還沒有看到客戶行為發生變化。

That's great. PJ, I was unclear about whether you -- I heard what you said about the freight and ocean and all that. But I was just wondering, does that mean that you have a tailwind on gross margin because of lower freight expense going into the back half? And does that help compensate for some of the raw material pressure you're facing right now?

那太棒了。 PJ，我不清楚你是否——我聽到了你所說的關於貨運和海運等等的事情。但我只是想知道，這是否意味著由於下半年運費較低，您的毛利率會有所提高？這是否有助於彌補您目前面臨的一些原材料壓力？

Yes, Janet. So the back half, there's still limited visibility and it's fluid. But what we can say is because we're managing our ocean and air better, we are seeing lower year-over-year inbound freight costs in the first quarter, which, as you know, will accrue to us going into the second quarter. So again, we're managing that mix. And so there's a little bit of a tailwind right now, but it's volatile. So it's subject to change. But we budgeted for higher supply chain costs in the back half. So we remain cautious there.

是的，珍妮特。所以後半部分的能見度仍然有限​​，而且很流暢。但我們可以說的是，因為我們更好地管理我們的海運和空運，我們看到第一季度的入境貨運成本同比下降，正如你所知，這將在第二季度增加到我們身上。再說一遍，我們正在管理這種組合。所以現在有一點順風，但它很不穩定。所以它可能會發生變化。但我們為下半年更高的供應鏈成本做了預算。所以我們對此保持謹慎。

But even though you're seeing it come down, you put it in at a higher level just because things could change. Is that how I should read what you just said?

但即使你看到它下降，你也會把它放在一個更高的水平，因為事情可能會發生變化。我應該這樣讀你剛才說的話嗎？

Yes. We plan the back half a little bit more conservatively just given the -- how the landscape has changed rapidly. So yes. But again, we had a benefit in Q1. We expect a benefit in Q2, and we'll continue to monitor it.

是的。考慮到形勢的迅速變化，我們對後半部分的計劃更加保守。所以是的。但我們在第一季度再次受益。我們預計第二季度會有所收益，並將繼續監控。

And what about receipt timeliness? Is it getting better? Are you starting to have shorter delays, et cetera? And I just had one more question on real estate after that.

那麼收貨時效性如何呢？情況好轉了嗎？您是否開始出現更短的延誤等等？之後我又問了一個關於房地產的問題。

Yes. Absolutely, Janet. We believe that it was a key decision to move our production calendar 10 weeks, and that has allowed us to be able to have on-time deliveries and also that more favorable mix between ocean and air freight. So that key decision has allowed us to be able to have on-time deliveries. In fact, our on-time deliveries were well over 80% for the quarter. And the few things that were a little later than we had expected were not massively delayed. We're only talking about maybe a week change in the difference of what we had expected. So all manageable.

是的。當然，珍妮特。我們認為，將生產日曆推遲 10 周是一個關鍵決定，這使我們能夠按時交貨，並在海運和空運之間實現更有利的組合。因此，這一關鍵決定使我們能夠按時交貨。事實上，本季度我們的準時交貨率遠超 80%。比我們預期晚一點的幾件事並沒有大規模推遲。我們只是談論與我們預期的差異可能有一周的變化。所以一切都可以管理。

Okay. Good. And just on the store closings of Chico's and White House Black Market, could you perhaps be negotiating better lease terms, PJ, that would make the stores' P&L more viable and keep them open?

好的。好的。就在奇科和白宮黑市的商店關閉時，PJ，您是否可以談判更好的租賃條款，這將使商店的損益表更加可行並保持營業？

Yes. Janet, so we are doing that. And in many respects, stores that were slated or at risk of close have come off that list. So we targeted closing 40 to 50 stores last year. We closed less than 40. So yes, we constantly evaluate the portfolio and negotiate the best deals we can. At the same time, we're seeing productivity at the stores improve. So that level of store closure could slow.

是的。珍妮特，所以我們正在這樣做。從很多方面來看，原本計劃關閉或面臨關閉風險的商店已經從名單上消失了。所以我們去年的目標是關閉 40 到 50 家商店。我們完成的交易還不到 40 個。所以，是的，我們不斷評估投資組合併盡可能協商最佳交易。與此同時，我們看到商店的生產力有所提高。因此，商店關閉的速度可能會放緩。

Ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to Molly Langenstein for any closing remarks.

女士們先生們，我們的問答環節到此結束。我想將會議轉回給莫莉·朗根斯坦（Molly Langenstein）做總結髮言。

Thank you. Our results and continued momentum demonstrate that our strategy is working. We are a company with 3 powerful brands, each with a clear path for profitable growth, and our pillars of customer-led, product obsessed, digital-first, and operational excellence continue to guide us.

謝謝。我們的成果和持續的勢頭表明我們的戰略正在發揮作用。我們是一家擁有 3 個強大品牌的公司，每個品牌都有明確的盈利增長路徑，以客戶為導向、以產品為中心、數字化為先和卓越運營的支柱繼續指引著我們。

After achieving a successful turnaround, we are now focused on delivering on our 3-year growth plan, and we are off to a great start. I want to thank the Chico's FAS team for continuing to deliver these great results and positioning us for an even better future. Thank you for your interest and confidence in Chico's FAS, and we look forward to speaking with you again during our second quarter call in August.

成功扭虧為盈後，我們現在專注於實現我們的三年增長計劃，我們已經有了一個良好的開端。我要感謝 Chico 的 FAS 團隊繼續取得這些出色的成果，並為我們創造更美好的未來。感謝您對 Chico FAS 的興趣和信心，我們期待在 8 月份的第二季度電話會議上再次與您交談。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。