Citi Trends Inc (CTRN) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Citi Trends second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加花旗趨勢2025年第二季財報電話會議。 （操作員指示）溫馨提示：本次會議正在錄製中。

It is now my pleasure to introduce your host, Nitza McKee, Senior Associate at ICR. Thank you. Please go ahead.

現在，我很高興介紹主持人，ICR 高級助理 Nitza McKee。謝謝。請開始。

Thank you, and good morning, everyone. Thank you for joining us on Citi Trends second-quarter 2025 earnings call. On our call today is Chief Executive Officer, Ken Seipel; and Chief Financial Officer, Heather Plutino.

謝謝大家，早安！感謝大家參加花旗趨勢2025年第二季財報電話會議。今天參加電話會議的有執行長肯·塞佩爾 (Ken Seipel) 和財務長希瑟·普魯蒂諾 (Heather Plutino)。

Our earnings release was sent out this morning at 6:45 AM, Eastern Time. If you have not received a copy of the release, it's available on the company's website under the Investor Relations section at www.cititrends.com.

我們的收益報告已於今天早上6:45（美國東部時間）發出。如果您尚未收到該報告，可在本公司網站www.cititrends.com的「投資人關係」欄位下查看。

You should be aware that prepared remarks today made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Management may make additional forward-looking statements in response to your questions.

您應該知道，今天在本次電話會議中發表的準備好的評論可能包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述。管理層可能會針對您的問題做出額外的前瞻性陳述。

These statements do not guarantee future performance. Therefore, you should not place undue reliance on these statements. We refer you to the company's most recent report on Form 10-K and other subsequent filings within the Securities and Exchange Commission for a more detailed discussion of the factors that can cause actual results to differ materially from those described in the forward-looking statements.

這些陳述並非對未來業績的保證。因此，您不應過度依賴這些陳述。我們建議您參閱本公司最新的10-K表格報告以及隨後向美國證券交易委員會提交的其他文件，以更詳細地了解可能導致實際結果與前瞻性陳述中描述的結果存在重大差異的因素。

I will now turn the call over to our Chief Executive Officer, Ken Seipel. Ken?

現在我將電話轉給我們的執行長 Ken Seipel。肯？

Thank you. Well, good morning, everyone, and thank you for joining us today on our second-quarter earnings call.

謝謝大家。大家早安，感謝大家今天參加我們的第二季財報電話會議。

I'm pleased to report another quarter of consistent performance, demonstrating disciplined execution and progress across every area of our business. Our transformation remains guided by a clear three-phase framework designed to deliver sustainable, profitable growth.

我很高興地報告，本季業績表現穩健，展現出我們各個業務領域嚴謹的執行力和持續的進步。我們的轉型仍以清晰的三階段框架為指導，旨在實現可持續的獲利成長。

First, Phase 1 is repair. That's restoring our fundamentals and establishing a strong foundation. Phase 2 is our execute phase embedding consistent best practices and driving reliable performance. And we are going to be entering in the future Phase 3, which is optimized, leveraging new systems and expansion capabilities to accelerate our growth. These three phases create the foundation for a disciplined approach to capture the near-term and long-term opportunity of growth for Citi Trends.

首先，第一階段是修復，即恢復我們的基本面並奠定堅實的基礎。第二階段是執行階段，即植入一致的最佳實踐並推動可靠的績效。未來，我們將進入第三階段，該階段將進行最佳化，利用新系統和擴展能力來加速成長。這三個階段為花旗趨勢採取嚴謹的策略奠定了基礎，以抓住短期和長期的成長機會。

Now turning to our results. In the second quarter, we generated strong comparable sales growth of 9.2%, marking our fourth consecutive quarter of mid- to high single-digit comp sales growth. Year to date, we delivered year-over-year comp growth of 9.6%.

現在來看看我們的業績。第二季度，我們的可比銷售額強勁成長9.2%，這是我們連續第四個季度實現中高個位數的可比銷售額成長。年初至今，我們的年成長率為9.6%。

And I'm happy to report that sales momentum consistent with our first half top line trends has continued into the back-to-school season. This August will be representing 13 consecutive months of comparable store sales growth.

我很高興地告訴大家，與上半年營收趨勢一致的銷售動能一直延續到返校季。今年8月將實現同店銷售額連續13個月成長。

Gross margin dollars have increased meaningfully, achieving our highest rate performance in the last several years. As our buying teams have fine-tuned assortments for our core customers, we've experienced faster sell-throughs of regular-priced product, reduced markdowns, and improved operational controls for shrinkage and transportation rates.

毛利率大幅提升，創下過去幾年的最高水準。由於我們的採購團隊針對核心客戶優化了產品組合，我們正價產品的銷售速度加快，降價幅度減少，損耗和運輸成本的營運控制也得到改善。

Our SG&A was slightly deleveraged in the quarter due to the inclusion of incentive compensation for the consistent financial performance of our employees. It's been quite a few years since the company achieved its bonus targets, so I'm excited to add performance-based bonus back to our financial profile. Excluding the new performance bonus incentive compensation, our SG&A leverage in the quarter and leverage year to date, consistent with our guidance.

由於納入了員工持續財務績效的激勵薪酬，本季我們的銷售、一般及行政管理費用（SG&A）略有去槓桿。公司距離實現獎金目標已有好幾年了，因此我很高興將績效獎金重新納入我們的財務狀況。剔除新的績效獎金激勵薪酬後，本季及年初至今的銷售、一般及行政管理費用（SG&A）槓桿率均與我們的預期一致。

Our top line continues to grow to be broad-based and healthy. Transaction growth has consistently accounted for the majority of our sales gain, which validates the strategic advantage of our neighborhood locations.

我們的營收持續成長，且基礎廣泛且健康。交易量成長一直是我們銷售成長的主要來源，這充分證明了我們社區門市的策略優勢。

And additionally, we saw growth in units per transaction while maintaining stable average unit retails. Also, our performance was consistent across climate zones, regions, and store volume deciles, which underscores the breadth of improvement across the business.

此外，我們在維持平均零售單位數量穩定的同時，每筆交易的單位數量也實現了成長。此外，我們的業績在各個氣候區、地區和門市數量十分位區間都保持了一致，這凸顯了我們業務的全面改善。

Our turnaround is rooted in a clear and unwavering focus on the needs of our African American customer, who is at the center of everything we do. Neighborhood-based locations remain a differentiated advantage, with proximity and word of mouth serving those powerful traffic drivers.

我們的轉型源於對非裔美國客戶需求的清晰而堅定的關注，他們是我們一切工作的核心。社區型門市仍然是我們差異化的優勢，地理位置和口碑是這些強大的客流量驅動力。

We continue to strengthen this connection by elevating the cultural relevance of our assortments, refreshing the shopping experience to better align with our brand voice, and investing in customer engagement. Work is underway to design and implement a CRM and loyalty platform that will deepen interaction with our most frequent shoppers, thus enhancing long-term customer value.

我們持續加強這種聯繫，提升產品系列的文化相關性，更新購物體驗以更好地契合我們的品牌定位，並投資於客戶互動。我們正在設計和實施一個客戶關係管理和忠誠度平台，以加深與常客的互動，從而提升長期客戶價值。

Our product performance in Q2 was broad-based and balanced across apparel, non-apparel, family basics, home and lifestyle, and children's categories. In all categories, customers responded well to elevated fashions and expansion of brand name apparel.

我們第二季的產品表現廣泛均衡，涵蓋服飾、非服飾、家庭基本用品、家居及生活方式以及兒童用品等類別。在所有品類中，消費者對高端時尚和品牌服飾的擴張反應良好。

Women's plus and big men's apparel had strong performance, and both remain early-stage businesses with significant runway ahead. Men's delivered improved results as trend-relevant assortments and improved in-stocks on basics resonated with customers.

女裝加大尺碼和男裝大尺碼業務表現強勁，且均處於早期階段，未來發展潛力巨大。男裝業績有所改善，得益於緊跟潮流的系列產品和基本款庫存的增加，男裝業務取得了良好的業績。

And children, a cornerstone of our business, has continued strong year-over-year performance. And our customers continue to respond to extreme value deals on well-known brands at exceptional prices as we continue to build capabilities to expand this important segment of our strategy.

兒童產品是我們業務的基石，其業績較去年同期持續強勁成長。隨著我們不斷提升能力，拓展這項重要策略性板塊，我們的客戶也持續對以超值價格購買知名品牌的超值優惠做出積極回應。

Looking ahead in product, we've made good progress in improving our three-tiered good, better, and best product assortments, but we are still in early stages. The majority of our initial initiatives, which include better in-stocks on basic product, accelerated growth of women's plus and big men's sizes, expansion of the consumables category, and the addition of extreme value products have had good early success. We see significant growth runway ahead, though, as we continue to fulfill consumer demand in all of these categories.

展望產品未來，我們在完善「好」、「更好」和「最佳」三個層級的產品組合方面取得了良好進展，但仍處於早期階段。我們最初的大部分舉措，包括提高基礎款產品的庫存、加速女士加大碼和男士大碼的增長、擴大消耗品類別以及增加超值產品，都取得了良好的早期成功。不過，隨著我們繼續滿足所有這些類別的消費者需求，我們預計未來將有顯著的成長空間。

In addition, our merchants have identified several growth opportunities through assortment refinement as we learn more about our customers. For example, our men's team is working to develop an expanded and more refined assortment for young men. We believe we are underserving this trendy value-oriented consumer. Young men's will complement the already strong men's classic and core business.

此外，隨著我們對客戶的了解不斷加深，我們的商家透過優化產品組合發現了一些成長機會。例如，我們的男裝團隊正在努力為年輕男士開發更多、更精緻的產品組合。我們認為，我們目前對這群追求時尚價值的消費者的服務不足。年輕男士產品將補充我們本已強勁的經典男士核心業務。

In our women's apparel, customers are responding to the increased offering of trending missy-sized product. Missy product broadens the availability of style and size for women and complements the strong offering of junior product.

在我們的女裝系列中，顧客對日益流行的小尺碼產品反應熱烈。小尺寸產品豐富了女性的款式和尺寸選擇，並與強大的青少年產品系列相得益彰。

Customer reaction to our best trendy product has been strong, giving us confidence there's more demand to address. This has led us to add a trend director to identify emerging trends and guide curation of product assortment.

顧客對我們最熱門的潮流產品反應強烈，這讓我們相信還有更多需求需要滿足。因此，我們增設了一位潮流總監，負責識別新興趨勢並指導產品組合的規劃。

We were fortunate to find an accomplished trend director with a successful track record of trend curation at well-known brands in the industry. I believe the elevation of trend in our men's and men's assortment will be additive and supportive to our merchant teams and resonate strongly with our customers.

我們非常榮幸地找到了一位經驗豐富的潮流總監，他曾在業界知名品牌擁有豐富的潮流策劃經驗。我相信，我們男裝和男鞋系列的潮流趨勢提升將對我們的銷售團隊起到補充和支持作用，並能與顧客產生強烈共鳴。

From an operational standpoint, we made continued progress on our initiatives in the second quarter. Foundational improvements in pre-season product planning, in-season allocation execution, and supply chain speed have enabled us to support a 9.2% comp growth while operating with 5.7% less in-store inventory than last year. Working capital optimization provides liquidity and flexibility to react quickly to emerging trends and new opportunities while also enhancing gross margin.

從營運角度來看，我們在第二季持續推動各項措施。季前產品規劃、季中配置執行和供應鏈速度的根本性改進，使我們在店內庫存較去年同期下降5.7%的情況下，實現了9.2%的同比增長。營運資本優化提供了流動性和靈活性，使我們能夠快速應對新興趨勢和新機遇，同時提升毛利率。

Our stores continue to make strides in improving neat, clean, and organized shopping experiences for customers. We've implemented improved in-store navigation signing and updated presentation standards to make shopping experience easier.

我們的門市持續致力於提升顧客整潔有序的購物體驗。我們改進了店內導航標識，並更新了展示標準，力求讓購物體驗更加便利。

Our supply chain remains stable with progress against productivity and steam goals. And looking ahead, we're in the process of implementing improved work processes throughout the DCs and implementing special handling areas to assist us in overall processing speed and capacity to grow extreme value product in family footwear. I look forward to sharing more on this initiative on future calls.

我們的供應鏈保持穩定，生產力和蒸汽目標正在穩步推進。展望未來，我們正在整個配送中心實施改進的工作流程，並設立特殊處理區域，以提升整體處理速度和產能，從而提升家庭鞋類產品的高價值化水平。我期待在未來的電話會議上分享更多關於這項舉措的資訊。

Looking ahead in operations, test results for our new AI-based allocation system have been well above expectations, allowing us to more accurately allocate products based on individual store demand, which has in turn increased sales and improved inventory turns. We are in the process of implementing AI-based allocations to all categories with expected completion in mid-September, in time to impact holiday.

展望未來的運營，我們基於人工智慧的新分配系統的測試結果遠超預期，這使我們能夠根據各門店的需求更精準地分配產品，從而提升了銷售額並改善了庫存週轉率。我們正在對所有品類實施基於人工智慧的分配系統，預計9月中旬完成，以應對假日的衝擊。

Concurrently, we're in the early stages of developing a complementary AI-based merchandise planning system that we hope to have ready for early 2026. Here, again, we'll keep you updated on our progress.

同時，我們正處於開發基於人工智慧的互補商品規劃系統的早期階段，希望能夠在 2026 年初完成。在這裡，我們將再次向您通報我們的進展。

As we all know, retail is detail, and execution without measurement is just simply guesswork, which is why our use of KPIs and dashboards for all key functions is critical. The visibility provided helps our teams stay on track, identifying where we're hitting the plans and where we need more attention. The combination of simple, repeatable processes supported by operating procedures plus KPIs makes us confident that we'll be able to drive continual operational improvement for years to come.

眾所周知，零售業注重細節，缺乏衡量的執行力只是猜測，因此，我們在所有關鍵職能部門使用 KPI 和儀表板至關重要。這些視覺化功能有助於我們的團隊保持正軌，了解哪些方面正在按計劃進行，哪些方面需要加強關注。簡單、可重複的流程，輔以操作規程和 KPI，讓我們有信心在未來幾年持續推動營運改善。

And a few comments on tariffs. As evidenced in our results, we are successfully navigating the ever-changing tariff landscape. In fact, we've actually found the off-price products deal-making environment to be very robust and advantageous.

關於關稅，我有一些評論。正如我們的業績所證明的那樣，我們成功地應對了不斷變化的關稅情況。事實上，我們發現折扣產品的交易環境非常強勁且有利。

My direction to the team is be aggressive, remain flexible with ample liquidity. Our strategy is working. We intend to play our game and win at our game.

我對團隊的指導是積極進取，保持彈性，並保持充足的流動性。我們的策略正在奏效。我們決心打出自己的風格，並且取得勝利。

Now I'll turn the call over to Heather to discuss the financial performance. Heather?

現在我將把電話轉給 Heather，討論財務表現。 Heather？

Thank you, Ken, and good morning, everyone. I'm excited to have the opportunity to walk you through the details of our second-quarter and first-half results as well as our improved outlook for the year.

謝謝肯，大家早安。我很高興有機會向大家詳細介紹我們第二季和上半年的業績，以及我們對今年業績的展望。

Before I do that, let me echo some themes from Ken's comments. The transformation of Citi Trends is underway and is driving significant improvement in both top- and bottom-line results. As I've said in previous calls, there is a new energy at Citi Trends. And the results we get to share with you today are proof that our team's hard work is paying off.

在此之前，我想重複一下Ken評論中的一些主題。花旗趨勢的轉型正在進行中，並正在推動營收和淨利潤的顯著提升。正如我在先前的電話會議中所說，花旗趨勢煥發出新的活力。今天我們與大家分享的成果證明了我們團隊的辛勤工作正在獲得回報。

Turning to the specifics of second-quarter results. Starting with the top line, Q2 sales were $190.8 million, up 8% compared to Q2 2024, with comp store sales growth of 9.2%, our fourth consecutive quarter of mid- or high single-digit comps.

談到第二季業績的具體情況。首先是營收，第二季銷售額為 1.908 億美元，較 2024 年第二季成長 8%，同店銷售額成長 9.2%，這是我們連續第四個季度實現中高個位數的同店銷售額成長。

We delivered high single-digit comps in each month of the quarter and saw growth to last year in each of our retail metrics, traffic, basket, and conversion, as the impact of our revised merchandise assortment, including off-price deals and more branded extreme value product, continues to resonate strongly.

我們在本季度的每個月都實現了高個位數的同比增長，並且我們的每項零售指標、流量、購物籃和轉換率都比去年有所增長，因為我們修改後的商品組合（包括折扣交易和更多品牌超值產品）的影響繼續產生強烈共鳴。

As Ken mentioned in his remarks, and similar to our first-quarter results, second-quarter top-line improvement to last year is a story of consistency. We saw consistent results across climate zones and across store volumes, and we drove consistent broad-based strength across most product categories. We produced a 40% gross margin rate in the quarter as planned, our highest Q2 rate since fiscal 2021 and an 890 basis point expansion versus Q2 last year.

正如Ken在演講中提到的，與我們第一季的業績類似，第二季營收較去年同期的成長體現了持續性。我們在各個氣候區和門市數量方面都取得了一致的業績，並且我們在大多數產品類別中都保持了持續的全面增長。本季我們的毛利率按計畫達到了40%，這是自2021財年以來第二季的最高水平，與去年第二季相比成長了890個基點。

Recall that in the second quarter of last year, we incurred significant markdowns from our strategic inventory reset, allowing us to exit aged and slow-moving products while freeing up open to buy for our revised product strategy. The effect of lapping that event, net of the in-season markdown cadence established last year, significantly improved year-over-year markdown expense.

回想一下，去年第二季度，我們因策略性庫存調整而大幅降價，這使我們能夠清倉老舊和滯銷產品，同時釋放出可供購買的庫存，以支持我們修訂後的產品策略。扣除去年確定的當季降價節奏後，此次調整帶來的效果顯著改善了同比降價支出。

We also drove decrease trend shrink expense in the quarter as a result of ongoing cross-functional efforts plus the lap of an accrual adjustment last year. Our broad-based Q2 margin rate improvement was also impacted by higher selling margins due to increased full-price selling and a favorable mix of higher-margin products, all while maintaining our sharp price value equation throughout the store. And finally, we saw improvement in cost of freight from favorable contract rates put in place last fall.

由於持續的跨職能部門努力以及去年應計調整的影響，本季我們也推動了趨勢性損耗費用的下降。第二季利潤率的全面提升也得益於全​​價銷售增加和高利潤產品組合的優化，從而提高了銷售利潤率，同時保持了全店的精準價格價值平衡。最後，由於去年秋季實施的優惠合約費率，我們看到了運費成本的改善。

Second-quarter adjusted SG&A expense totaled $78.9 million compared to $72.1 million in the prior period. The increase to last year was driven by higher incentive compensation accrual on improved business performance and store and DC expense to process higher sales.

第二季調整後的銷售、一般及行政費用（SG&A）總計7,890萬美元，去年同期為7,210萬美元。較上年同期成長，主要由於業務業績改善帶來的激勵性薪酬增加，以及為因應銷售額成長而產生的門市和配送中心費用。

As we shared with you in our last call, we reinstated incentive compensation accruals in Q1 of fiscal 2025 after incurring very minimal bonus and equity expense in the last three quarters of fiscal 2024, causing a bonus to no-bonus comparison in the second quarter.

正如我們在上次電話會議中與您分享的那樣，在 2024 財年最後三個季度產生了極少的獎金和股權支出之後，我們在 2025 財年第一季度恢復了激勵薪酬應計，導致第二季度的獎金與無獎金進行比較。

On a rate basis, Q2 adjusted SG&A was 41.3% of revenue, 50 basis points higher than the 40.8% rate in Q2 last year. The rate increase was driven entirely by this year's incentive compensation accruals.

以比率計算，第二季調整後的銷售、行政及管理費用佔營收的41.3%，較去年同期的40.8%高出50個基點。該比率的上升完全是由今年的激勵薪酬應計項目推動的。

All other SG&A levered by approximately 150 basis points in the quarter, reflecting continued disciplined cost controls and the impact of improved top-line results. And it's important to note that for the first half of the year, total adjusted SG&A, including incentive comp, levered about 90 basis points to last year.

本季所有其他銷售、一般及行政費用的槓桿率均上漲約150個基點，反映出持續嚴格的成本控制以及營收績效改善的影響。值得注意的是，上半年調整後銷售、一般及行政費用總額（包括激勵性薪酬）的槓桿率較去年同期上漲約90個基點。

Adjusted EBITDA for the quarter was a loss of $2.6 million, in line with management expectations and an increase of $14.6 million versus Q2 2024 results.

本季調整後的 EBITDA 虧損 260 萬美元，符合管理層預期，與 2024 年第二季業績相比增加了 1,460 萬美元。

In the quarter, we sold our 72,000 square foot building in Savannah, Georgia, realizing a gain on the sale of approximately $11 million which is included in reported net income and reported EBITDA, but is excluded from adjusted results. We will maintain our presence in Savannah, having leased a new, smaller office space, not far from the building we sold, giving our teams a fresh new space for continued collaboration.

本季度，我們出售了位於喬治亞州薩凡納的7.2萬平方英尺辦公大樓，實現了約1100萬美元的銷售收益，該收益已計入報告淨利潤和報告息稅折舊攤銷前利潤 (EBITDA)，但不計入調整後業績。我們將繼續在薩凡納開展業務，並在距離出售的辦公大樓不遠的地方租賃了一套新的、較小的辦公空間，為我們的團隊提供全新的合作空間。

During Q2, we remodeled 19 stores, ending the quarter with 28% of the fleet in an updated format. We also closed one store in the quarter, bringing our total store count to 590 locations.

第二季度，我們改造了19家門市，截至本季末，28%的門市已實現升級。我們也關閉了一家門市，門市總數達到590家。

Before turning to the balance sheet, let me provide a few details on our performance in the first half of fiscal 2025. First-half comparable store sales were 9.6% with a two-year comp stack of 10.3%. First-half comps were driven by approximately 6% increase in transactions.

在討論資產負債表之前，請容許我先介紹一下我們2025財年上半年的表現。上半年可比門市銷售額較去年同期成長9.6%，兩年同期可比銷售額較去年同期成長10.3%。上半年可比銷售額的成長主要得益於交易量約6%的成長。

Adjusted first-half EBITDA was $2.8 million, an increase of about $21 million to last year. EBITDA growth was driven by $29 million of incremental sales, 480 basis points of gross margin rate expansion, and 90 basis points of SG&A leverage.

調整後上半年EBITDA為280萬美元，較去年同期成長約2,100萬美元。 EBITDA的成長主要得益於2,900萬美元的增量銷售額、480個基點的毛利率提升以及90個基點的銷售、一般及行政費用（SG&A）槓桿率的下降。

Now turning to the balance sheet. Total inventory dollars at quarter end decreased 12.9% compared to last year, with average in-store inventory down 5.7%. Our success in driving high single-digit increases, sales increases with less inventory, reflects our focus on improved inventory efficiency through higher turns plus improvements in supply chain speed. We remain pleased with our inventory levels, composition and freshness.

現在來看看資產負債表。季度末庫存總額較去年同期下降了12.9%，平均店內庫存下降了5.7%。我們成功實現了高個位數成長，銷售額在庫存減少的情況下實現了成長，這反映了我們致力於透過提高週轉率和加快供應鏈速度來提升庫存效率。我們對庫存水準、組成和新鮮度仍然感到滿意。

At the end of the quarter, we remained in a healthy financial position with a strong balance sheet, including no debt, no drawings on our $75 million revolver, and $50 million in cash.

截至本季末，我們的財務狀況依然健康，資產負債表強勁，沒有債務，沒有動用 7,500 萬美元的循環信貸額度，並且擁有 5,000 萬美元的現金。

Now turning to our fiscal 2025 outlook. Based on our first-half results, our confidence in the continued effectiveness of our turnaround plan, plus recognition that the macro economic environment remains uncertain, we are pleased to update our outlook for 2025 as follows.

現在來談談我們對2025財年的展望。基於我們上半年的業績、對重振計畫持續有效性的信心，以及對宏觀經濟環境依然不確定的認識，我們很高興更新我們對2025財年的展望，具體如下。

With the strength of sales in the first half of the year, we now expect full-year comp store sales growth of mid- to high single digits, above our previous outlook of mid-single-digit growth.

鑑於上半年銷售強勁，我們目前預計全年同店銷售額將成長中高個位數，高於我們先前預測的中個位數成長。

We now expect full-year gross margin expansion of approximately 210 to 230 basis points versus 2024, slightly above previous outlook due to improved inventory efficiency and initial progress on our planned supply chain improvement.

我們現在預計，與 2024 年相比，全年毛利率將擴大約 210 至 230 個基點，略高於先前的預期，這得益於庫存效率的提高以及我們計劃的供應鏈改進的初步進展。

SG&A is expected to leverage in the range of 60 to 90 basis points versus 2024, consistent with our first-half trend and an improvement to our previous outlook. Note that this is inclusive of the build of the incentive comp accrual.

預計銷售、一般及行政費用 (SG&A) 槓桿率將在 2024 年基礎上保持在 60 至 90 個基點之間，與我們上半年的趨勢一致，並較先前的預測有所改善。請注意，此數據已包含激勵性薪酬的累積。

To be clear, we now expect full year SG&A expense of approximately $310 million and (technical difficulty) is guidance due to cost to process and support higher sales and a higher bonus accrual on better business performance.

需要明確的是，我們現在預計全年銷售、一般及行政費用約為 3.1 億美元，並且（技術難度）是由於處理和支持更高銷售額的成本以及更好的業務表現帶來的更高獎金累積而得出的指導性數字。

With these updates, we now expect full-year EBITDA to be in the range of $7 million to $11 million, an increase the previous outlook. This revised guidance is $21 million to $25 million above fiscal 2024 results.

經過這些更新，我們目前預計全年EBITDA將在700萬美元至1100萬美元之間，高於先前的預期。修訂後的指引比2024財年的業績高出2,100萬美元至2,500萬美元。

There is no change to our expected effective tax rate of approximately 0% for the year. We now expect to open three new stores, close three stores, and to remodel approximately 60 locations in the year. And finally, full year capital expenditures are now expected to be in the range of $22 million to $25 million.

我們預計今年的有效稅率約為0%，維持不變。我們目前預計今年將開設三家新店，關閉三家門市，並翻新約60家門市。最後，預計全年資本支出將在2,200萬美元至2,500萬美元之間。

Before I turn the call back to Ken, I'll reiterate that we are very proud of our Q2 and first-half results and the meaningful progress we've achieved so far. Our teams remain focused on continuous improvement with full recognition that there are still significant opportunities ahead of us.

在把電話轉回給肯之前，我想重申一下，我們對第二季和上半年的業績以及迄今為止的重大進展感到非常自豪。我們的團隊將繼續專注於持續改進，並充分認識到我們面前仍有巨大的機會。

We still have processes to refine and areas to optimize as we continue the transformation of our business. The consistency of our performance over the past four quarters gives me confidence that we're building something durable and that our disciplined approach to driving shareholder value will continue to deliver results.

隨著我們業務轉型的持續推進，我們仍有一些流程需要完善，有些領域需要優化。過去四個季度我們業績的穩定讓我充滿信心，我們正在建立持久的基石，我們嚴謹的股東價值驅動方法也將繼續帶來成效。

With that, I'll turn the call back to Ken. Ken?

這樣，我就把電話轉回給肯。肯？

Thank you, Heather. Before we open the call to Q&A, I do want to share a few thoughts about our longer-range growth for Citi Trends.

謝謝你，希瑟。在開始問答環節之前，我想分享一些關於花旗趨勢長期成長的想法。

So looking forward, we are preparing for store expansion growth. We expect to remodel approximately 50 stores per year and expand square footage in the mid-single-digit range.

展望未來，我們正在為門市擴張做好準備。我們預計每年將改造約50家門市，並將門市面積擴大到中等個位數。

We have engaged a third-party analytics team to assist us with dissecting the demographics, biographics, and geo proximity location of our current customers right down to the individual household level. These insights, coupled with a robust financial performance, will greatly improve our accuracy in real estate site selection, leading to improved new store return on investment performance. We've identified several MSAs that are attractive expansion opportunities for Citi Trends in 2026 and beyond.

我們聘請了第三方分析團隊，協助我們深入分析現有客戶的人口統計、個人簡介和地理位置，直到每個家庭的層面。這些洞察，加上強勁的財務業績，將大大提高我們房地產選址的準確性，進而提升新店的投資報酬率。我們已經確定了幾個MSA，這些MSA對於Citi Trends在2026年及以後的擴張來說，都是極具吸引力的機會。

Long range, our goal at Citi Trends is to achieve $40 million or more of EBITDA by 2027 -- in 2027. This will be driven by consistent single-digit sales growth, gross margin dollar expansion, leveraged SG&A, and new store expansion.

從長遠來看，Citi Trends 的目標是到 2027 年實現 4,000 萬美元或更多的 EBITDA——即在 2027 年。這將由持續的個位數銷售額成長、毛利率擴張、槓桿化的銷售、一般及行政費用 (SG&A) 以及新店擴張所推動。

Each initiative within our value creation plan is supported by clear accountability, key performance indicators, and execution rigor. Our leadership team is highly engaged in building out the detailed plans to execute and is fully committed to making these plans a reality.

我們價值創造計畫中的每項措施都擁有明確的責任制、關鍵績效指標和嚴謹的執行力。我們的領導團隊積極參與制定詳細的執行計劃，並全心全意致力於將這些計劃付諸實踐。

In summary, Citi Trends has delivered four consecutive quarters of comp growth, underpinned by transaction increases, broad-based product strength, and disciplined execution. Our strategy is working, our operational capabilities are advancing, and our customer connection is strengthening.

綜上所述，花旗趨勢已連續四季實現業績成長，這得益於交易量的成長、廣泛的產品實力以及高效的執行力。我們的策略正在奏效，營運能力正在提升，客戶關係也不斷加強。

But there's still a lot of work to do. We have processes to refine. We have categories to optimize and more systems to build, but the path forward is clear. We are confident in our ability to deliver continued transformation, drive shareholder value, and expand our role as the leading neighborhood retailer for African American families.

但我們仍有許多工作要做。我們有一些流程需要完善，有些產品類別需要優化，還有更多系統需要構建，但前進的道路是清晰的。我們有信心實現持續轉型，提升股東價值，並鞏固我們作為非裔美國家庭社群零售商的領先地位。

I'll say thank you to our Citi Trends team for their discipline, their dedication, and great results. And thank you to our shareholders for your continued confidence and support.

我要感謝花旗趨勢團隊的嚴謹紀律、奉獻精神和卓越的表現。也感謝股東們一直以來的信任與支持。

And with that, I'll turn the call back over to operator for questions. Dana?

說完這些，我將把電話轉回給接線生詢問。達娜？

(Operator Instructions) Michael Baker, D.A. Davidson.

（操作員指示）Michael Baker，D.A. Davidson。

Hopefully, you can hear me. I wanted to ask -- great quarter. One question, one follow-up.

希望您能聽到我的聲音。我想問——這是一個很棒的季度。一個問題，一個後續問題。

Let's first just talk about the expenses, the incentive comp, and how that plays out going forward. And just -- how should we think about expenses on a quarterly basis?

我們先來談談費用、激勵薪酬以及未來如何運作。我們該如何考慮季度費用？

I think the math implies about $78 million in SG&A for each quarter in the back half, on average. Is that the right run rate going forward as we think about 2026 and 2027.

我認為，根據計算，下半年平均每季的銷售、行政及行政管理費用（SG&A）約為7,800萬美元。考慮到2026年和2027年的情況，這個運行率是否合理？

Heather here, loud and clear. A question on SG&A, sure. $78 million per quarter, I think that's exactly right. The thing that I will remind you of, though, that's a good average per quarter. But Q4 ticks up about 3% versus Q3 because of holiday sales. So just think about that as you calendarize.

我是 Heather，聲音清晰。關於銷售、一般及行政費用 (SG&A) 的問題，當然。每季 7800 萬美元，我想完全正確。不過，我要提醒你的是，這是一個不錯的季度平均值。但由於假日促銷，第四季的銷售額比第三季成長了約 3%。所以在安排日曆的時候，可以考慮一下這一點。

And as we go forward into 2026, we haven't conveyed that yet broadly. I can help you with modeling in our follow-up call.

邁入2026年，我們尚未廣泛傳達這一點。我可以在後續電話會議中幫助您進行建模。

Well, I guess I don't want to waste my follow-up on this, but -- let me ask two more, if I could. What you -- thinking about that and the gross margin outlook, what's the right incremental margin flow-through on incremental sales? I understand there's a lot of noise this year, particularly, as you cycled some things last year, but more about 2026 and 2027. How do we think about incremental margins?

好吧，我想我不想在這個問題上浪費時間，但是——如果可以的話，我再問兩個問題。考慮到這一點以及毛利率前景，增量銷售額的正確增量利潤率流向是多少？我知道今年有很多噪音，特別是因為您去年重複了一些事情，但更多是關於2026年和2027年。我們如何看待增量利潤率？

Yeah. So we've mentioned before that our goal is 20% to 25% EBITDA flow-through, which we define as the change in EBITDA over the change of sales versus the prior year.

是的。我們之前提到過，我們的目標是 20% 到 25% 的 EBITDA 流轉率，我們將其定義為 EBITDA 的變化與去年銷售額的變化之比。

This particular fiscal year is a little choppy because of some odd compares in the last year period and the build of the incentive comp this year. So if you try to normalize that, then you end up at about 25% certainly in the back half of the year of 2025. But that's what we're looking at going forward is 20% to 25% profit flow-through.

由於去年同期的一些異常數據以及今年激勵補償的構建，本財年略顯波動。因此，如果嘗試將其正常化，那麼到2025年下半年，利潤流出率肯定會達到25%左右。但我們預計未來利潤流出率將達到20%到25%。

Got it. All right. If I could sneak in one more, I'm intrigued by the trend director, I think you called her or Fashion Creative Director -- or him, I guess I don't know. Any examples of what you're learning from that new hire, how we think that might show up in terms of what the merchandise looks like?

明白了。好的。如果可以再插一句，我對潮流總監很有興趣，我記得你叫她時尚創意總監——或者叫他，我不太清楚。能不能舉個例子，說明你從這位新進員工身上學到了什麼？我們認為這些經驗會如何反映在產品的設計上？

Yeah. A couple of things on that, Mike. Since she's joined, she has really been acutely focused on really interpreting and understanding the consumer voice. But more importantly, the current landscape around the consumer and what we've been able to gain from her insights is really taking the what I call the voice of the consumer and starting to translate that into tangible style and tangible trends.

是的。麥克，關於這一點，我想說幾點。自從她加入以來，她一直非常專注於解讀和理解消費者的聲音。但更重要的是，當前的消費者情況以及我們從她的洞察中獲益良多，真正地將我所說的消費者的聲音轉化為切實的風格和趨勢。

So looking at obviously all the emerging things that are happening culturally around on the landscape, it's pretty difficult to swift through all that. She's done a nice job of sifting through all the things, all the noise out there and distilling it into a handful of key focus trends.

因此，縱觀文化領域正在發生的所有新興事物，想要快速梳理清楚並非易事。她出色地篩選了所有事物和外界的紛擾，並將其提煉成幾個關鍵的焦點趨勢。

And what that has allowed our merchants to do then is to go to market with very specific filters on curating against this trend. And so we're starting to see some of that show up.

這使得我們的商家能夠透過非常具體的篩選條件來篩選市場，從而應對這一趨勢。因此，我們開始看到一些這樣的趨勢顯現。

I gave the props to our men's team earlier. They've done a nice job of embracing the concept right out the gate, and they're getting good results in addition to the work that they're doing in their core programs, which has been good work.

我之前對我們男隊的表現表示讚賞。他們從一開始就很好地接受了這個理念，除了在核心項目上做得很好之外，他們還取得了不錯的成績。

So these two things come in together and give us a sense that we're on to something. And I believe that you'll start to see the results of a better, more accurate, and more thoughtful curation as we get into Q4. Really excited about where we're headed there.

所以，這兩件事結合在一起，讓我們感覺到我們正在取得一些進展。我相信，隨著我們進入第四季度，你們將開始看到更優質、更精準、更周到的策展成果。我們對此感到非常興奮。

Jeremy Hamblin, Craig Hallum.

傑里米·漢布林、克雷格·哈勒姆。

Congrats on the impressive results. I wanted to get into the commentary about -- it sounds like the momentum has really continued here in Q3, even as you're lapping much, much tougher compares. I wanted to see if you can provide a bit more color on what's driving that sustained momentum.

恭喜你取得如此驕人的成績。我想談談你的評論——聽起來你的勢頭在第三季度確實延續了下來，儘管你的賽道條件比第三季度更加艱難。我想看看你能否更詳細地解釋一下是什麼推動了這種持續的勢頭。

I know you talked about broad-based execution in Q2. But are you seeing more branded deals potentially driving the sustained strength for more well-rounded assortment? Any color you might be able to share on that would be helpful.

我知道您在第二季度談到了廣泛的執行。但您是否認為更多的品牌交易有可能推動更全面的產品組合的持續成長？您能否分享一下顏色方面的情況，這將會很有幫助。

Yeah. Sure, Jeremy. And it literally is all of the above. What's happened, I think, in the course of the last year as we've continued to refine, starting first with -- I mentioned on the call earlier pre-season planning capabilities where we've really been thoughtful about how do we go in and attack the season, as we call it.

是的，當然，傑里米。以上所有情況確實如此。我認為，在過去的一年裡，我們一直在不斷改進，首先是——我在之前的電話會議上提到了季前賽的規劃能力，我們認真思考瞭如何開始並迎接我們所說的賽季。

So we really -- we put a good road map out there for winning in Q3 and what do we need to do to get Q3 off to a good start from a back-to-school perspective. And then that was supported with very thoughtful plans from all of our merchant teams to do something in a category review process where we generally put stakes in the ground on what categories can grow.

所以，我們真的製定了一個很好的路線圖，以贏得第三季的勝利，並指出從開學季的角度來看，我們需要做些什麼才能讓第三季有一個良好的開端。之後，我們所有的商家團隊都制定了周到的計劃，在品類審核流程中採取了一些措施，我們通常會對哪些品類能夠增長進行打下基礎。

And then behind that, we back that up with the finances, right, and the open to buy and the amount of receipts required to support those ideas. And it's a very basic program, to be honest with you. Most retailers do it, but I think we're doing it better than ever and very disciplined and very thoughtful about it.

除此之外，我們還會提供財務支持，對吧？開放購買率，以及支持這些想法所需的收據數量。說實話，這是一個非常基礎的計劃。大多數零售商都這麼做，但我認為我們做得比以往任何時候都好，而且非常自律，非常周到。

And then the bottom line is you can put a good plan together, but then it comes down to execution. So that's where our teams have been out in the market, finding the better product, finding the better styles.

歸根究底，你可以製定一個好的計劃，但最終還是要落實到執行上。所以，我們的團隊一直在市場上尋找更好的產品，尋找更好的款式。

So I'd give you a combination -- and you can see this in our store. But to give you one example, the team really embraced the brand True Religion, which has been around for a while. But it actually resonated across the board with our consumers, and it was shared against multiple categories. And it's showing up across the store in all lines versus just in one category where we might have approached that in the past.

所以我給你一個組合——你可以在我們店裡看到。舉個例子，團隊非常支持True Religion這個品牌，這個品牌已經存在了一段時間。它實際上引起了我們消費者的廣泛共鳴，並在多個品類中得到了推廣。現在它出現在我們店裡的所有產品線中，而不是像過去那樣只出現在一個品類中。

And those ideas like that, there are many more that -- our teams are building on each other's ideas. And we're starting to see a much better curated product assortment for the total consumer.

諸如此類的想法還有很多——我們的團隊正在互相借鑒彼此的想法。我們開始看到面向所有消費者的產品組合更加完善。

And then I'd be remiss if I didn't mention our teams in the field and the execution that's going on there, where they've really stepped up their game considerably when it comes to moving freight from the background to the floor in a more expedient way. Presentation standards have improved, and our DC as well is moving things through.

如果我沒提到我們一線團隊以及他們出色的執行力，那真是太失職了。他們在以更便捷的方式將貨物從後台運送到現場方面確實取得了顯著的進步。展示標準提高，我們的配送中心也正在推進各項工作。

So it literally is -- from my desk, it's a combination of all things coming together quite well. And I guess I would also share with you that as we sit around as a leadership team and think about what's working and what opportunities we have ahead, frankly, we come up with more things on the to-do list than we do on the done list, right?

所以，從我的辦公桌上看，所有事情都進展得相當順利。我想跟大家分享的是，當我們領導團隊聚在一起，思考哪些工作有效，以及未來有哪些機會時，坦白說，我們列出的待辦事項比已完成事項多，對吧？

And it's a little bit humbling to realize how far we've come and how far we really have to go. But anyway, I'm sorry about the rambling answer there, but the point is it really truly is -- it's a combination of all of the detailed execution of the strategy coming together.

意識到我們已經取得了多大的進步，以及我們還有很長的路要走，這讓我們感到有些謙卑。不過，無論如何，我很抱歉我的回答有點冗長，但重點是，這確實是——它是所有戰略細節執行的結合。

Very helpful. I wanted to shift gears then and talk a little bit about the store base. So you've increased the number of remodels from 50 to 60 that you planned for this year. And I think it sounds like 50 on an ongoing basis.

非常有幫助。我想換個話題，談談門店數量。所以，您今年計劃的改造門市數量從50家增加到了60家。而且我覺得這個數字聽起來像是持續增加50家。

And then as you plan to get back into a unit growth mode, should we be thinking that FY26 is a mid-single-digit type unit growth? And then if you could, just share some of the economics behind how much the remodels cost, what type of lift you're getting from them, and then what you expect the new store economics to be on new openings on a go-forward basis.

然後，當您計劃恢復單位成長模式時，我們是否應該認為26財年是中等個位數的單位成長？然後，如果可以的話，請分享一些經濟因素，例如改造成本是多少，您從中獲得了什麼樣的提升，以及您對未來新開門店的經濟效益的預期。

Sure. I'll give you some of the strategy then and have Heather fill in some of the color on the results there for you. But -- yeah, a couple of things.

當然。到時候我會給你一些策略，然後請希瑟幫你補充一些結果。不過——是的，有幾件事。

So this year, we did adjust -- we actually added a few more remodels. I think we previously announced 50, and we had line of sight to add 10 more for strategic reasons. Actually, to let you know what we're up to, we had some stores in our Jacksonville market in Colombia, South Carolina market, to complement a couple of new store openings we have in those markets.

所以今年我們確實做了一些調整——實際上我們又增加了一些門市改造。我記得我們之前宣布過要改造50家門市，出於策略性原因，我們原本計劃再增加10家。實際上，為了讓大家了解我們的計劃，我們在傑克遜維爾市場、哥倫比亞市場和南卡羅來納州市場開設了一些門市，以補充我們在這些市場開設的幾家新店。

We're going to try to go in and revitalize those markets and refresh the brand on an entire MSA basis. I'm excited about what that might do. We're going to learn a little bit more about that.

我們將嘗試進入這些市場，重振品牌，並在整個MSA基礎上進行品牌重塑。我對此感到興奮。我們將對此進行更深入的了解。

Our new stores opened up in October, and all of those remodels will be completed there. So the reason we added 10 more stores was just to accomplish the full remodel in both of those marketplaces.

我們的新店於10月份開業，所有改造工作都將在那裡完成。所以我們新增10家門市的原因，就是為了完成這兩個市場的全面改造。

Going forward on a new store growth perspective, we are going to get into the mid-single digits. We have line of sight to a number of sites already for 2026.

從新店成長的角度來看，我們未來將實現中等個位數的成長。我們已經規劃了2026年的一些門市。

We don't have an exact number of where we're going to be in there, but there'll be some number between 25 and 40 new stores in 2026. I would expect at least 25 in that mix and then maybe more, we'll see. We'll have -- I'll be able to announce that on future calls more specifically, but they'll be in that range.

我們目前還沒有確切的數字，但到2026年，新店數量將在25到40家之間。我預計至少會有25家，甚至更多，我們拭目以待。具體數字我會在未來的電話會議上公佈，但會在這個範圍內。

And in the out years after that, we'll have the flywheel built. So we're still building our pipeline. And as I mentioned earlier in my remarks, we're looking very specifically at opportunistic MSAs across the nation.

在接下來的幾年裡，我們將打造飛輪。所以我們仍在建造我們的管道。正如我之前在演講中提到的，我們正在全國範圍內非常關注機會型MSA。

We've identified many of those already as places to go. And now, we have the hard work of trying to get in and find the right site inside of the market. So that work is underway as we speak as well in a lot of key markets.

我們已經確定了許多值得進入的市場。現在，我們正努力進入市場，並在其中找到合適的地點。目前，這項工作也正在許多關鍵市場進行。

The final thing I'll say in terms of return on investment at a high level, our new stores, we're putting them under a financial rigor. And I want you to think about our new store growth going forward as a triangle, right?

最後，關於高水準的投資報酬率，我想說的是，我們的新店正在接受嚴格的財務考量。我希望大家能把我們未來的新店成長想像成三角形，對嗎？

There's -- on one side of the triangle is the rigor and discipline around making sure that we have the right site selection, consumer demographics, and so forth. The other part of the triangle is the actual end market site itself being in an attractive center and so forth. And then the third part of the triangle is financial rigor, which is making sure that we hold ourselves to a high standard of return on investment.

三角形的一邊是嚴謹性和紀律性，確保我們擁有正確的選址、消費者人口統計等等。三角形的另一邊是實際的終端市場選址本身是否位於一個有吸引力的中心地帶等等。三角形的第三部分是財務嚴謹性，確保我們堅持高標準的投資報酬率。

And so with that, I'll turn that over to Heather to let her fill in a little bit of color on that as well as the remodel question you had.

因此，我將把這個問題交給 Heather，讓她對此進行一些解釋，並解答您提出的有關改造的問題。

Yeah. I'm going to start with the remodel, if you don't mind, Jeremy. You asked about model expense and results.

是的。傑里米，如果你不介意的話，我先從改造開始。你問的是模型費用和效果。

So remodel expense, you'll remember. I think it was 2023. We cut the expense of a remodel in about half, right? So on average, we're somewhere between $85,000 per location to $130,000. I can tell you that the remaining remodels for this year are averaging at $100,000 per store, and these are high-volume stores, like 1.9 million per.

你應該還記得裝潢費用吧。我記得是2023年。我們把裝修費用削減了大約一半，對吧？平均下來，每家店的裝修費用在8.5萬美元到13萬美元之間。我可以告訴你，今年剩下的裝修費用平均每家店10萬美元，而且都是客流量很大的門市，每家店的客流量大概在190萬美元左右。

And then from a results perspective, we continue to see sales lift when we remodel stores. It varies by market, but we're still very comfortable that we're getting return.

從業績來看，我們在門市改造過程中持續看到銷售額的提升。具體情況因市場而異，但我們仍然對獲得的回報感到非常欣慰。

I think it's important, though, that on a store-by-store basis -- that amount is going to change store-by-store. So in some locations, it's really is a matter of refreshing the fleet and doing a market presentation, right?

不過，我認為重要的是，根據每家店的具體情況，這個數字會有所不同。所以在某些地方，這實際上只是更新門市陣容和進行市場展示的問題，對嗎？

So Ken just talked about Jacksonville. He talked about Columbia, South Carolina. We're going to touch stores in that market to make sure that we are doing a full market press on here is the new iteration of Citi Trends.

肯剛才談到了傑克遜維爾。他還提到了南卡羅來納州的哥倫比亞。我們將與那裡的門市接觸，以確保我們能對Citi Trends的全新版本進行全面的市場宣傳。

And what we want, excitement in every door. We want excitement with our associates. We don't want anybody to feel left behind. So we're thinking about remodels maybe a little bit differently. And that it's about fleet maintenance as much as it is about driving incremental sales.

我們想要的是，每一扇門都充滿熱情。我們希望員工們都能感到興奮。我們不想讓任何人感到落伍。所以我們對改造的思考可能略有不同。這不僅關乎提升銷量，也關乎車隊維修。

For new stores, the financial rigor that Ken spoke of, yes, absolutely. We are applying financial metrics, making sure we've got the right return on investment. We've got the right payback period. We've got the right with the right right. We're looking at it very closely in partnership with our real estate team.

對於新店，Ken 提到的財務嚴謹性是絕對必要的。我們正在運用財務指標，確保獲得合理的投資報酬率。我們擁有合適的投資回收期。我們採取了正確的措施。我們正在與房地產團隊密切合作，並密切關注此事。

Top line, you've heard Ken talk about this before. Ideally, we want our per store average at about $1.45 million -- not to put too fine a point on it, but $1.45 million per door. Are we going to get that every time? No, but that's what we're striving for, right?

最重要的是，你之前聽肯說過這件事。理想情況下，我們希望每家店的平均銷售額約為145萬美元——說得更直白些，就是每家店145萬美元。我們每次都能達到這個目標嗎？不會，但這正是我們努力的目標，對吧？

And rent's at 10%. We've got controlled payroll, all of that, right? So from a four-wall flow-through, we look for mid-teens and up to make sure that we're supporting the financial performance of the full chain. So that's a look behind the curtain there.

租金是10%。我們控制了工資單等等，對吧？所以，從四面牆的流程來看，我們尋找的是中期及以上的收入，以確保我們能夠支持整個連鎖店的財務表現。這就是幕後情況。

That's great color. If I could sneak in just one more, Ken, on the last call, you had mentioned some supply chain initiatives that you're working on. trying to reduce, I think, the number of days in supply chain. And that would allow you to see -- to save some money and cost.

太棒了！肯，如果我能再插播一點，上次電話會議的時候，你提到了一些你正在實施的供應鏈計劃，我想是試圖減少供應鏈的運行天數。這樣你就能節省一些金錢和成本。

And I wanted to just understand where are you on that initiative. I know it sounds like as you make progress, you realize you have more progress to make. But I was hoping for a quick update on where that initiative stands.

我想了解你在這個倡議上的進展。我知道聽起來好像你隨著取得進展，會意識到還有更多進步空間。但我希望你能快速更新這個倡議的進展。

For sure, Jeremy. We are in -- again, I use the term early stages, but I think it's fair to say early stages there. We've -- what I would call taking out the low-hanging fruit. Obviously, we're much faster now.

當然，傑里米。我們處於——我再次強調，我用了「早期階段」這個詞，但我認為說「早期階段」是公平的。我們——我稱之為「摘取低垂的果實」。顯然，我們現在的速度要快得多。

And so think about the supply chain in three big parts. Part number one is vendor to DC. And we're better at managing that in our transportation routing and speed of picking up. And there, we've taken out a few days of that moment.

所以，把供應鏈分成三個主要部分。第一部分是從供應商到配送中心。我們在運輸路線和提貨速度方面做得更好。在這方面，我們節省了幾天時間。

Then you have your NDC processing. And then the third part is DC to store. And we've actually sped up the DC to store considerably. That -- we've changed our routing to actually UPS carrier. It's taken three or four days out of the supply chain from DC to store.

然後是 NDC 處理。第三部分是從 DC 到門市。我們實際上已經大大加快了 DC 到門市的速度。也就是說，我們已將路線改為使用 UPS 承運商。從 DC 到門市的供應鏈流程只需三到四天。

So the team did that really at the beginning of the year. We learned how to optimize that, and so we're significantly faster there.

所以團隊在年初就真正做到了這一點。我們學會瞭如何優化，因此速度明顯加快了。

The area that we're really focused on right now is what I would call the NDC portion and some of the work that is underway is in our receiving characteristics. You mentioned -- I mentioned earlier in vent analytics the AI-based system.

我們目前真正關注的領域是我所說的NDC部分，正在進行的一些工作是在我們的接收特性方面。您曾提過－我之前提到過vent analytics基於人工智慧的系統。

When we throw the switch on that in September, that will save two days out of our receiving process 1.5 days, right there. And then we're going to be adding to that better ticketing standards, which are already being worked on and getting in place right now.

當我們在9月啟用這項功能時，我們的收貨流程將節省兩天，也就是一天半。此外，我們還將在此基礎上改進票務標準，目前這些標準已經在製定中，並正在逐步實施。

That will speed up our ticketing portion and then there's a processing portion, which will speed up as well. So those things have been designed now. We understand what we need to do. Now it's a matter of getting them implemented.

這將加快我們的票務處理速度，處理速度也會加快。所以這些部分現在已經設計好了。我們知道需要做什麼。現在的問題是將它們付諸實行。

And so we're at different stages of implementation. But I would expect over the third quarter, the majority of these ideas will at least be implemented in our DC. And then we'll start to see and feel better optimization as we get into Q4. So it definitely is a work in progress, but we've made good steps forward with a lot more to do there in the DC.

所以，我們目前處於不同的實施階段。但我預計，在第三季度，這些想法中的大部分至少會在我們的資料中心實施。然後，到第四季度，我們將開始看到並感受到更好的優化。所以，這肯定是一項正在進行的工作，但我們已經取得了良好的進展，在資料中心還有很多工作要做。

Thank you. At this time, I would like to turn the floor back over to Mr. Seipel for closing comments.

謝謝。現在，我想把發言權交還給塞佩爾先生，請他發表最後評論。

All right. Well, I want to thank everyone for joining us today. We look forward to keeping you updated on our progress. Bye-bye.

好的。好的，感謝大家今天的參與。我們期待隨時向大家通報進度。再見。

Ladies and gentlemen, this concludes today's event. You may disconnect your lines and walk off the webcast at this time, and enjoy the rest of your day.

女士們，先生們，今天的活動到此結束。各位可以掛斷電話，退出網路直播，享受剩下的時間。