Torrid Holdings Inc (CURV) 2022 Q1 法說會逐字稿

Greetings, and welcome to the Torrid Holdings Inc. First Quarter Fiscal 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 Torrid Holdings Inc. 2022 財年第一季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

I would now like to turn the conference over to your host, Mr. Vince Adams, SVP of FP&A and Investor Relations. Please go ahead.

我現在想把會議轉交給你的主持人，FP&A 和投資者關係高級副總裁 Vince Adams 先生。請繼續。

Good afternoon, everyone. Thank you for joining Torrid's call today to discuss first quarter financial results for 2022, which we released this afternoon and can be found on our website at investors.torrid.com.

大家下午好。感謝您今天加入 Torrid 的電話會議，討論我們今天下午發布的 2022 年第一季度財務業績，可以在我們的網站 investors.torrid.com 上找到。

With me today on the call are Lisa Harper, Chief Executive Officer of Torrid; and Tanner MacDiarmid, Interim Chief Financial Officer.

今天和我一起打電話的是 Torrid 的首席執行官 Lisa Harper；臨時首席財務官 Tanner MacDiarmid。

Before we get started, I would like to remind you of the company's safe harbor language, which I'm sure you're familiar with. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC.

在我們開始之前，我想提醒你公司的安全港語言，我相信你很熟悉。管理層可能會做出前瞻性陳述，包括指導和基本假設。前瞻性陳述基於涉及風險和不確定性的預期，這些風險和不確定性可能導致實際結果存在重大差異。有關與我們業務相關的風險的進一步討論，請參閱我們向美國證券交易委員會提交的文件。

This call will contain non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin. Reconciliations to these non-GAAP measures to the most comparable GAAP measure are included in the earnings release furnished to the SEC and available on our website.

此電話會議將包含非 GAAP 財務指標，例如調整後的 EBITDA 和調整後的 EBITDA 利潤率。這些非 GAAP 措施與最具可比性的 GAAP 措施的調節包含在提供給 SEC 的收益發布中，並可在我們的網站上查閱。

With that, I will now turn the call over to Lisa.

有了這個，我現在將把電話轉給麗莎。

Good afternoon, everyone, and thanks for joining us for a discussion of our first quarter results. I'd like to start by saying that I'm very pleased to be hosting my first call today as the CEO of Torrid. I have a long history with the brand, serving on the Board of Directors for the past 14 years. I also served as the CEO of Torrid and Hot Topic from 2011 to 2016. I've been incredibly proud to see the growth and evolution of Torrid over the last decade, and I believe there is tremendous opportunity for us to continue that growth. A large part of our success comes from the remarkable team behind the Torrid brand, and I want to personally thank Liz for serving as our CEO for the past 4 years. Liz and I have worked together for more than a decade. She has an incredible passion for our product, customer and our brand and has played an integral role in getting the business to where it is today.

大家下午好，感謝您加入我們討論我們的第一季度業績。我想首先說，我很高興今天作為 Torrid 的首席執行官主持我的第一個電話會議。我與該品牌有著悠久的歷史，在過去的 14 年裡一直在董事會任職。 2011 年至 2016 年，我還擔任過 Torrid 和 Hot Topic 的首席執行官。看到 Torrid 在過去十年中的成長和演變，我感到無比自豪，我相信我們有巨大的機會繼續這種成長。我們的成功很大一部分來自 Torrid 品牌背後的卓越團隊，我要親自感謝 Liz 在過去 4 年擔任我們的首席執行官。 Liz 和我一起工作了十多年。她對我們的產品、客戶和我們的品牌有著難以置信的熱情，並在將業務發展到今天的過程中發揮了不可或缺的作用。

I'm thrilled that Liz is taking on the role of Chief Creative Officer, where she will continue to lead the vision for design, product development, merchandising and creative marketing. As for me, I bring a strong background in business strategy and operational oversight, and I will lead the brand's overall vision and direction. Based on early observations, I've determined where we need to strengthen our focus, and my top priority is to provide direction to the team that will drive sustainable and profitable growth.

我很高興 Liz 擔任首席創意官一職，她將繼續領導設計、產品開發、營銷和創意營銷的願景。至於我，我在商業戰略和運營監督方面有著深厚的背景，我將領導品牌的整體願景和方向。根據早期的觀察，我確定了我們需要加強重點的地方，我的首要任務是為團隊提供方向，以推動可持續的盈利增長。

Before I share this action plan, I want to take a moment to briefly highlight our first quarter results.

在我分享這個行動計劃之前，我想花點時間簡要介紹一下我們第一季度的業績。

Net sales were $328 million, exceeding our high guidance of $305 million despite being up against stimulus from last year. This was an increase of 1% compared to last year and 30% compared to pre-pandemic level 2019.

淨銷售額為 3.28 億美元，超過了我們 3.05 億美元的高指導，儘管受到了去年刺激措施的影響。與去年相比增長了 1%，與 2019 年大流行前水平相比增長了 30%。

Our results for the quarter were impacted by an estimated net 5 percentage points on a year-over-year basis due to shifts in events and shipment timing. Adjusted EBITDA came in at $52 million, exceeding our high guidance of $48 million with adjusted EBITDA margin of 15.8% of sales. Our gross margin rate was slightly below our expectations, primarily due to higher promotional activity. Looking ahead, we believe we can manage gross margin more proactively while executing a plan that will continue to drive a long-term profitable growth.

由於事件和發貨時間的變化，我們本季度的業績受到估計同比淨 5 個百分點的影響。調整後的 EBITDA 為 5200 萬美元，超過我們 4800 萬美元的高指導，調整後的 EBITDA 利潤率為銷售額的 15.8%。我們的毛利率略低於我們的預期，主要是由於較高的促銷活動。展望未來，我們相信我們可以更主動地管理毛利率，同時執行一項將繼續推動長期盈利增長的計劃。

This brings me to my 3 main priorities for the business: number one, enhance promotional and marketing strategies to better balance margin and sales growth. Number two, drive growth across multiple opportunities, including our curve concept; and number three, develop a more efficient and effective organization by realigning resources. We have a significant opportunity to refine our promotional and marketing strategy to drive sales at higher margin rates by reducing our reliance on site-wide promotions, focusing on product franchises and launches and better balancing retention, reactivation and acquisition activities within our customer file. We also plan to enhance our marketing strategy with better storytelling around our unparalleled fit and compelling assortment rather than the primary focus being the discount.

這讓我想到了業務的 3 個主要優先事項：第一，加強促銷和營銷策略，以更好地平衡利潤率和銷售增長。第二，通過多種機會推動增長，包括我們的曲線概念；第三，通過重新調整資源，建立一個更有效率和效力的組織。我們有一個重要的機會來改進我們的促銷和營銷策略，以通過減少我們對全站促銷的依賴、專注於產品特許經營和發布以及更好地平衡我們客戶檔案中的保留、重新激活和獲取活動來以更高的利潤率推動銷售。我們還計劃通過圍繞我們無與倫比的合身性和引人注目的分類更好地講述故事來加強我們的營銷策略，而不是主要關注折扣。

In the past, our promotions have been largely broad-based offers to all customers and across categories, which was anchored heavily on percentage discount. Going forward, we plan to take a more surgical approach to promotions by closely aligning them with our merchandising and marketing strategies and our inventory investment. It will take time to refine these strategies, and we will maintain site-wise promotions in the near term while we test and react into more targeted promotions. I'll keep you updated on our progress in revising our promotional tactics as we learn more from these tests. We will create a more balanced approach to our marketing investments to drive stronger conversion of lapsed customers and improve customer retention and frequency while maintaining a focus on acquiring new customers.

過去，我們的促銷活動主要是面向所有客戶和跨類別的廣泛優惠，主要以百分比折扣為基礎。展望未來，我們計劃通過將促銷與我們的商品銷售和營銷策略以及我們的庫存投資緊密結合起來，採取更加手術式的促銷方式。完善這些策略需要時間，我們將在短期內保持站點促銷，同時我們測試和反應更有針對性的促銷。當我們從這些測試中了解更多信息時，我會及時向您通報我們在修改促銷策略方面的最新進展。我們將為我們的營銷投資創建一種更加平衡的方法，以推動流失客戶的更強轉化並提高客戶保留率和頻率，同時繼續專注於獲取新客戶。

Once we get customers into the funnel, the foundation of our highly successful unified commerce model is built on migrating single-channel customers become omni where they spend over 3x their single-channel counterparts and deliver exceptional lifetime value. Stores continue to be the #1 vehicle for acquiring customers, so we are expanding our efforts to drive traffic to our high conversion store environment. We will continue to advance our growth strategies in both our core Torrid business as well as curve.

一旦我們讓客戶進入漏斗，我們非常成功的統一商務模型的基礎就建立在遷移的單渠道客戶成為全能客戶的基礎上，他們的消費是單渠道客戶的 3 倍以上，並提供卓越的終身價值。商店仍然是獲取客戶的第一大渠道，因此我們正在努力為我們的高轉化率商店環境吸引流量。我們將繼續推進我們核心 Torrid 業務和曲線的增長戰略。

We remain committed to expanding curve with an emphasis on sustainable and high-quality growth. While we continue to believe in the ultimate growth potential, we have seen growth in this business normalize and no longer expect to reach $500 million in sales by 2023. We are reevaluating our approach to the business, still believing that it will deliver substantial growth over the next 3 to 5 years. Our previously discussed plans for curve this year remain intact, and we will be opening up to 10 stand-alone curve stores this fall, expanding the curve assortment in up to 1/3 of the store fleet and launching a tab experience on our website.

我們仍然致力於擴大曲線，強調可持續和高質量的增長。雖然我們仍然相信最終的增長潛力，但我們已經看到該業務的增長正常化，並且不再期望到 2023 年銷售額達到 5 億美元。我們正在重新評估我們的業務方法，仍然相信它將在未來 3 到 5 年。我們之前討論的今年 curve 計劃保持不變，今年秋天我們將開設 10 家獨立的 curve 商店，將 curve 的種類擴大到多達 1/3 的商店數量，並在我們的網站上推出標籤體驗。

We'll keep you informed about the results of these initiatives and will plan the future expansions occur based on these learnings. We are also focused on a balanced approach that ensures the continued growth of our core business. Our renewed focus on innovative product launches and building franchises such as our studio and lovesick assortments in apparel and our wire-free and T-shirt bras and Curve will support compelling storytelling to the customer. Fit specific products like bras and denim continue to drive the results for customer acquisition in the stores, and we're seeing positive traffic trends in that channel.

我們會及時通知您這些舉措的結果，並將根據這些經驗規劃未來的擴展。我們還專注於確保核心業務持續增長的平衡方法。我們重新關注創新產品發布和建立特許經營權，例如我們的工作室和相思病服裝系列以及我們的無線和 T 卹文胸和 Curve 將支持向客戶講述引人入勝的故事。文胸和牛仔布等合身特定產品繼續推動商店客戶獲取的結果，我們看到該渠道的客流量呈積極趨勢。

My third priority will be to develop a more efficient and effective organizational structure by realigning resources to focus on the most critical tasks. We plan to put more rigor around our resource allocation to support long-term scalable growth. This will include thoughtful investments in technology to support the business such as the e-com site enhancements, we'll also increase capacity for our e-comm order fulfillment in Q2, which will improve productivity and throughput to better support our growing business. As part of realigning resources to focus on critical areas, we are also making organizational changes such as the recent promotion of Vivian Alhorn to SVP Chief Digital Officer.

我的第三個優先事項是通過重新調整資源以專注於最關鍵的任務來建立更高效和有效的組織結構。我們計劃更加嚴格地分配資源，以支持長期可擴展的增長。這將包括對技術的深思熟慮的投資以支持業務，例如電子商務網站的增強，我們還將在第二季度提高我們的電子商務訂單履行能力，這將提高生產力和吞吐量，以更好地支持我們不斷增長的業務。作為重新調整資源以專注於關鍵領域的一部分，我們也在進行組織變革，例如最近將 Vivian Alhorn 提升為高級副總裁首席數字官。

Vivian has been with the business for almost a year and previously ran the e-com business at the [nano] Republican Pottery Barn. She brings strong leadership to our digital team and will drive the initiative in developing the customer file. We are continuing the search for a permanent Chief Financial Officer and will meanwhile leverage the expertise of our interim CFO, Tanner MacDiarmid and our strong finance team until a replacement is found.

Vivian 已經在這家公司工作了將近一年，之前曾在 [nano] Republican Pottery Barn 經營電子商務業務。她為我們的數字團隊帶來了強有力的領導，並將推動開發客戶檔案的主動性。我們正在繼續尋找永久首席財務官，同時將利用我們的臨時首席財務官 Tanner MacDiarmid 和我們強大的財務團隊的專業知識，直到找到替代者。

Looking ahead, I am confident in our ability to continue to drive sustainable and profitable growth. Torrid has exceptionally strong brand equity, and we are uniquely positioned to serve our existing and new customers during this changing environment by focusing on what is most important to our customers unparalleled fit. I'm excited to be working with a talented, passionate and innovative team that is energized by the opportunities that lie ahead for our brand.

展望未來，我對我們繼續推動可持續盈利增長的能力充滿信心。 Torrid 擁有非常強大的品牌資產，我們具有獨特的優勢，可以在這個不斷變化的環境中通過專注於對我們的客戶最重要的無與倫比的契合度來為我們的現有和新客戶提供服務。我很高興能與一支才華橫溢、充滿激情和創新精神的團隊合作，這支團隊為我們品牌未來的機遇而充滿活力。

And with that, I'll now hand the call over to Tanner to provide more detailed financials on the quarter and updated guidance.

有了這個，我現在將電話轉交給坦納，以提供本季度更詳細的財務數據和更新的指導。

Thank you, Lisa, and good afternoon, everyone. I'm pleased to be here today as the interim CFO of Torrid. I have spent the majority of my career working with businesses to execute operational improvements, increase productivity and to determine where to best invest cash to drive profitable growth both as an adviser and an interim management roles. I look forward to working with Lisa to help Torrid strengthen its foundation in support of long-term growth until a permanent CFO is named. I will begin my discussion with a review of our financial results for the quarter followed by our outlook.

謝謝你，麗莎，大家下午好。我很高興今天作為 Torrid 的臨時首席財務官來到這裡。作為顧問和臨時管理角色，我職業生涯的大部分時間都在與企業合作，以執行運營改進、提高生產力並確定最佳投資現金以推動盈利增長的領域。我期待與 Lisa 合作，幫助 Torrid 鞏固其支持長期增長的基礎，直到任命一名永久首席財務官。我將首先回顧我們本季度的財務業績，然後是我們的展望。

Starting with the first quarter results. We exceeded our sales guidance as net sales grew 1% to $328 million compared to $326 million in the first quarter last year, and they were up 30% versus pre-pandemic 2019. Comparable sales in the quarter declined 2% on a year-over-year basis. Our sales in the quarter were impacted by an estimated net 5 percentage points on a year-over-year basis due to shifts in events and shipment timing.

從第一季度的結果開始。我們超出了我們的銷售指引，因為淨銷售額從去年第一季度的 3.26 億美元增長了 1% 至 3.28 億美元，並且與 2019 年大流行前相比增長了 30%。本季度的可比銷售額同比下降 2% -年的基礎。由於活動和發貨時間的變化，我們本季度的銷售額估計同比淨下降 5 個百分點。

Adjusting for these shifts, our net sales growth would have been up 6% for the quarter and comparable sales would have been up 3%. As a reminder, we were up against a difficult 108% comp increase last year as government stimulus and pent-up customer demand drove significant consumer spending. We were pleased with the strong consumer demand throughout the first quarter and into our core cash event, which delivered above expectations.

調整這些變化後，本季度我們的淨銷售額增長 6%，可比銷售額增長 3%。提醒一下，由於政府的刺激措施和被壓抑的客戶需求推動了大量消費者支出，我們去年面臨著 108% 的艱難增長。我們對整個第一季度的強勁消費者需求以及對我們核心現金活動的強勁需求感到滿意，這超出了預期。

Gross profit for the quarter was $125 million or 38.1% of net sales. This compares to $145 million or 44.5% of net sales in the first quarter of last year. Roughly half of the 640 basis point decline in gross margin was from higher discounts and promotions compared to last year, and the remainder was due to increased product and transportation costs which were partially offset by select price increases.

本季度的毛利潤為 1.25 億美元，占淨銷售額的 38.1%。相比之下，去年第一季度為 1.45 億美元，占淨銷售額的 44.5%。毛利率下降 640 個基點，其中大約一半是由於與去年相比更高的折扣和促銷，其餘部分是由於產品和運輸成本增加，部分被部分價格上漲所抵消。

As Lisa mentioned, we are focused on actions to drive margin performance. Selling, general and administrative expenses in the quarter were $67 million compared to $110 million for the first quarter in the prior year. As a percentage of sales, SG&A was better than expected and decreased to 20.5% from 33.7% compared to the first quarter of last year due to lower share-based compensation and performance bonus expense.

正如 Lisa 提到的，我們專注於推動利潤率表現的行動。本季度的銷售、一般和管理費用為 6700 萬美元，而去年第一季度為 1.1 億美元。由於基於股票的薪酬和績效獎金支出較低，SG&A 佔銷售額的百分比好於預期，與去年第一季度的 33.7% 相比下降至 20.5%。

This was slightly offset by an increase in store payroll and store expenses as we are operating with more normalized operating hours and wages is an increase since last year. Marketing expenses in the quarter were $18 million compared to $10 million in the first quarter of last year. As a percentage of sales, marketing increased approximately 250 basis points to 5.5% compared to 2.9% in the first quarter of last year. The higher marketing costs as a percentage of sales was driven by further investment in digital marketing channels to drive acquisition and the incremental marketing tests we discussed last quarter.

這被商店工資和商店費用的增加略微抵消了，因為我們的營業時間更加正常化，而且工資自去年以來有所增加。本季度的營銷費用為 1800 萬美元，而去年第一季度為 1000 萬美元。與去年第一季度的 2.9% 相比，營銷佔銷售額的百分比增加了約 250 個基點，達到 5.5%。較高的營銷成本佔銷售額的百分比是由於對數字營銷渠道的進一步投資以推動收購以及我們上個季度討論的增量營銷測試。

Turning to profitability. Net income for the quarter was $24 million or $0.23 per share versus net income of $13 million or $0.12 per share for the same period last year. We had no adjustment to net income in the first quarter of 2022. But for comparison purposes, adjusted net income last year was $45 million or $0.41 per share.

轉向盈利能力。本季度淨收入為 2400 萬美元或每股 0.23 美元，而去年同期的淨收入為 1300 萬美元或每股 0.12 美元。我們沒有對 2022 年第一季度的淨收入進行調整。但為了進行比較，去年調整後的淨收入為 4500 萬美元或每股 0.41 美元。

In addition to GAAP measures, we believe that adjusted EBITDA and adjusted net income are important measures that we use to evaluate and manage our business. Adjusted EBITDA came in above the high end of our guidance at $52 million or 15.8% of net sales compared to $76 million or 23.2% of net sales in the first quarter of 2021.

除了 GAAP 措施外，我們認為調整後的 EBITDA 和調整後的淨收入是我們用來評估和管理我們業務的重要措施。調整後的 EBITDA 高於我們指導的上限，為 5200 萬美元或淨銷售額的 15.8%，而 2021 年第一季度為 7600 萬美元或淨銷售額的 23.2%。

Turning to the balance sheet. Our cash and cash equivalents at the end of the quarter totaled $25 million. Total liquidity at the end of the first quarter, including available credit was $145 million. During the quarter, we repurchased 23 million of the common shares outstanding and had 54 million remaining on our stock repurchase program at the end of the quarter.

轉向資產負債表。本季度末我們的現金和現金等價物總計 2500 萬美元。第一季度末的總流動資金（包括可用信貸）為 1.45 億美元。本季度，我們回購了 2300 萬股已發行普通股，本季度末我們的股票回購計劃中剩餘 5400 萬股。

Total debt at the end of the quarter was $357 million compared to $202 million in the first quarter of 2021. Our net debt to adjusted EBITDA was 1.5x at quarter end. Inventory at the end of the quarter was $179 million compared to $112 million in the prior year. Excluding in-transit, inventory was up 51% to pre-pandemic 2019 with approximately 30% sales growth and increased product costs over that period of time. We ended the quarter with a comparatively elevated inventory balance. But with our current level of planned sales and receipts, inventory levels should be better positioned going into the second half of the year.

本季度末的總債務為 3.57 億美元，而 2021 年第一季度為 2.02 億美元。本季度末我們的淨債務與調整後 EBITDA 之比為 1.5 倍。本季度末的庫存為 1.79 億美元，而去年同期為 1.12 億美元。不包括在途庫存，與 2019 年大流行前相比，庫存增長了 51%，在此期間銷售額增長了約 30%，產品成本也有所增加。我們以相對較高的庫存餘額結束了本季度。但根據我們目前的計劃銷售和收貨水平，進入下半年的庫存水平應該會更好。

We opened 4 Torrid stores in the first quarter and remain on track to open 35 for the year, including up to 10 Curve stores.

我們在第一季度開設了 4 家 Torrid 門店，並有望在今年開設 35 家門店，其中包括多達 10 家 Curve 門店。

Turning to the outlook for the second quarter. While we were pleased with our first quarter results, we remain thoughtful in our outlook as we continue to face macro headwinds and lap significant stimulus from last year. We expect net sales to be between $350 million and $360 million for the quarter, and we expect adjusted EBITDA to be between $53 million to $58 million.

轉向第二季度的展望。儘管我們對第一季度的業績感到滿意，但由於我們繼續面臨宏觀逆風並實施了去年的重大刺激措施，因此我們對前景仍然深思熟慮。我們預計本季度的淨銷售額將在 3.5 億美元至 3.6 億美元之間，我們預計調整後的 EBITDA 將在 5300 萬至 5800 萬美元之間。

This outlook assumes our gross margin rate will be below Q1 as we clear through inventory heading into the back half of the year. For the full year, we are maintaining our full year sales guidance of between $1.3 billion and $1.365 billion. As Lisa stated, we are focused on creating a better balance of sales and margin in the business that is expected to moderate sales growth in the back half, while driving improvements in margin.

這一展望假設我們的毛利率將低於第一季度，因為我們將在今年下半年清理庫存。對於全年，我們將全年銷售額指引維持在 13 億美元至 13.65 億美元之間。正如 Lisa 所說，我們專注於在業務中創造更好的銷售和利潤平衡，預計將在下半年緩和銷售增長，同時推動利潤率的提高。

For adjusted EBITDA, we still expect to deliver between $195 million to $220 million for the year. Capital expenditures are expected to be between $30 million to $35 million for fiscal 2022, reflecting infrastructure investments and roughly 35 new store openings in 2022 including up to 10 Curve only test stores. We're also planning to close approximately 5 stores this year.

對於調整後的 EBITDA，我們仍預計今年將交付 1.95 億至 2.2 億美元。預計 2022 財年的資本支出將在 3000 萬至 3500 萬美元之間，這反映了基礎設施投資和 2022 年大約 35 家新店的開設，其中包括多達 10 家僅 Curve 的測試店。我們還計劃今年關閉大約 5 家商店。

As we move into the remainder of the year, I'm looking forward to the opportunity to help strengthen the foundation for Torrid that will allow for sustainable long-term growth. Torrid has an incredible brand equity and customer loyalty. and I'm excited to help build upon Torrid's organization and operations.

隨著我們進入今年剩餘時間，我期待著有機會幫助加強 Torrid 的基礎，從而實現可持續的長期增長。 Torrid 擁有令人難以置信的品牌資產和客戶忠誠度。我很高興能幫助建立 Torrid 的組織和運營。

With that, I will now turn it over to the operator for questions.

有了這個，我現在將把它交給接線員提問。

(Operator Instructions) Your first question comes from Mark Altschwager with Baird.

（操作員說明）您的第一個問題來自 Baird 的 Mark Altschwager。

I guess, first off, you commented in the release that the brand and the Torrid customer have proven to be extremely resilient. I was hoping you could expand on that a bit. How we should think about the durability of demand, should the economic backdrop soften a bit in the back half of the year? And whether there's anything you're seeing within your customer data that would indicate she's pulling back at all?

我想，首先，您在新聞稿中評論說該品牌和 Torrid 客戶已被證明具有極強的彈性。我希望你能稍微擴展一下。我們應該如何考慮需求的持久性，下半年經濟背景是否會有所緩和？您是否在客戶數據中看到任何表明她正在撤退的信息？

Thanks, Mark. Our customer is incredibly resilient. They have a household income of approximately $85,000. We continue to see the shopping patterns, more customers coming into the store, which is encouraging. Average unit retails we're comfortable with so that we are seeing what we consider to be a sustained performance by the customer broadly. So encouraging to that standpoint because I think of the lack of kind of competitive opportunities. Our customers have -- are highly retentive as well as that higher household income, we think, may have a combination to help provide a net of stability as we kind of continue to navigate.

謝謝，馬克。我們的客戶非常有彈性。他們的家庭收入約為 85,000 美元。我們繼續看到購物模式，越來越多的顧客進入商店，這是令人鼓舞的。我們對平均單位零售感到滿意，因此我們看到了我們認為廣泛的客戶持續表現。如此令人鼓舞的觀點是因為我認為缺乏競爭機會。我們的客戶 - 具有很高的保留率以及更高的家庭收入，我們認為，這可能有助於在我們繼續導航時提供穩定的網絡。

That's very helpful. And just as a follow-up, with respect to the new marketing and promotional strategy, does there necessarily need to be a sales reset in the near term or even into 2023, as you walk away from some of the less profitable sales? Or is this transition going to be a little bit more subtle than that? Just any further color there would be helpful.

這很有幫助。作為後續行動，關於新的營銷和促銷策略，是否有必要在近期甚至 2023 年重新設置銷售，因為您會放棄一些利潤較低的銷售？或者這種轉變會比那更微妙一點？任何其他顏色都會有所幫助。

Sure. I think reassessing our promotional strategy and time period that we have a little bit more inventory than we would ideally like to have. We have to be very cautious about that in addition to the macro conversations that are perpetually being shared at this point. We feel very strongly that we have an opportunity to test price elasticity models in terms -- with a more surgical approach to proportion. So -- and also to enhance our product launch strategy, so building franchise businesses. So for instance, we have a big relaunch of the studio concept in September of this year, which is one of our biggest launches ever.

當然。我認為重新評估我們的促銷策略和時間段，我們的庫存比理想情況下要多一點。除了此時不斷共享的宏觀對話之外，我們必須對此非常謹慎。我們非常強烈地感到，我們有機會測試價格彈性模型——採用更手術的比例方法。所以——還要加強我們的產品發布戰略，從而建立特許經營業務。因此，例如，我們在今年 9 月重新啟動了工作室概念，這是我們有史以來最大的發布之一。

So we have good product progression and innovation. I also think it's something I am excited about it in the back half of the year. But broadly to the promotional mindset, we're not resetting sales. We've considered this as we continue to reinforce our guidance moving forward. I feel like we just have to take a more holistic 360-degree strategic approach to our promotional as well as our marketing strategies that allow us to really give the best advantage and really call out the advantages of the product and our brand to the customers, that's where acquiring them and retaining them.

所以我們有很好的產品進步和創新。我也認為這是我在今年下半年對此感到興奮的事情。但從廣義上講，對於促銷心態，我們並沒有重置銷售。我們在繼續加強我們的指導方針時考慮到了這一點。我覺得我們只需要對我們的促銷和營銷策略採取更全面的 360 度戰略方法，使我們能夠真正發揮最大優勢，並真正向客戶宣傳產品和品牌的優勢，這就是獲取和保留它們的地方。

So Mark, to your point, all of that has been considered into -- in our forecasting. And we'll test and learn, particularly in second quarter, but going into the third quarter with these more surgical offerings that give -- so that we can really model the price elasticity as we move forward. And then again, to reinforce focusing on product launches and product benefits and features that I think will enhance our variability as we move forward at a lower discount rate.

所以馬克，就你的觀點而言，所有這些都已在我們的預測中得到考慮。我們將測試和學習，特別是在第二季度，但進入第三季度，這些更多的手術產品可以提供——這樣我們就可以在前進的過程中真正模擬價格彈性。再一次，加強對產品發布、產品優勢和功能的關注，我認為這些將在我們以較低的折扣率前進時增強我們的可變性。

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

你的下一個問題來自美國銀行的 Lorraine Hutchinson。

Can you talk a little bit more about what happened in the quarter with Curve that's causing you to step away from the longer-term goals? Was it a specific product line? Was it the attachment to other products? Maybe just a little more insight into that. And then the changes you're making to try to improve on that business.

您能否多談談本季度 Curve 發生的導致您偏離長期目標的事情？它是一個特定的產品線嗎？是對其他產品的依戀嗎？也許只是對此有更多的了解。然後是您為改善該業務所做的更改。

Sure. I wouldn't say that there was an abrupt shift in Curve. There are some categories of business, particularly active, the athletic businesses that are waning, I think as the customer comes out of the pandemic and make different choices. I also think that we have an opportunity to highlight our 5 core frames and really build franchises off of those. We are a little bit overbought in which isn't a long-term issue. We'll work out of those -- that inventory really productively. But I just wanted to make sure that we have so many things that we're learning about Curve, 50-50 stores towards the Curve stand-alone stores that are launching in the third quarter the tab experience. I wanted to make sure that we were moving forward in a really productive and profitable long-term mindset versus really just wishing to make those things happen.

當然。我不會說 Curve 有一個突然的轉變。有一些業務類別，特別是活躍的，運動業務正在減弱，我認為隨著客戶從大流行中走出來並做出不同的選擇。我還認為我們有機會突出我們的 5 個核心框架，並真正從中建立特許經營權。我們有點超買，這不是一個長期問題。我們解決了這些——庫存將真正富有成效。但我只是想確保我們有很多關於 Curve 的知識，50-50 家商店將在第三季度推出標籤體驗的 Curve 獨立商店。我想確保我們以一種真正富有成效和盈利的長期心態向前發展，而不是真的只是希望讓這些事情發生。

I'm still incredibly bullish about this. I think this -- I don't know if this is -- like now I'm thinking if I'm getting in trouble. Seven of our top 10 items for customer acquisition are bras. So it's absolutely a way that the customer enters the brand, and it still is. So we're seeing consistency in that and that it's really a driver for customer acquisition and retention.

我仍然非常看好這一點。我想這——我不知道這是不是——就像現在我在想我是否遇到了麻煩。在我們獲得客戶的前 10 件商品中，有 7 件是文胸。所以這絕對是客戶進入品牌的一種方式，現在仍然如此。所以我們看到了一致性，它確實是客戶獲取和保留的驅動力。

It's just an opportunity to be more prudent and step back a little bit, take the real learnings from the -- all of these initiatives that we have undertaken and make sure that we put together a plan that is profitable and sustainable over a slightly longer time frame.

這只是一個更加謹慎和退後一步的機會，從我們已經採取的所有這些舉措中吸取真正的教訓，並確保我們制定一個在稍長一段時間內有利可圖且可持續的計劃框架。

Your next question comes from Dylan Carden with William Blair.

你的下一個問題來自迪倫卡登和威廉布萊爾。

Yes. I guess mine is kind of a follow-up from that. I mean if you're talking about sort of a more radical -- or not radical, perhaps, but definitely a shift in the promotional activity, the promotional stance and your customer historically has really been -- it's been a call to arms for them and Curve has sort of a different outlook here. It sounds like is there something here where you're measuring profit versus growth whereby the longer-term sales outlook kind of is muted in favor of gross margin. Is that kind of the way that we should be thinking about how this progresses from where kind of our models are currently set coming out of the IPO.

是的。我想我的是那種後續行動。我的意思是，如果你談論的是一種更激進的——或者不是激進的，也許，但絕對是促銷活動、促銷立場和你的客戶歷史上的轉變——這是對他們的武裝呼籲Curve 在這裡有不同的看法。聽起來這裡有什麼東西可以衡量利潤與增長，從而使長期銷售前景變得溫和，有利於毛利率。我們應該考慮這種方式是如何從我們目前從 IPO 中設定的模型發展而來的。

No. I would still consider us to be a growth company, absolutely. I think it's prudent to make sure that we're growing productively and profitably. I think one of the things that we're really focusing on, I'll give you an example of how this applies. There is an enormous focus placed on top of funnel acquisition marketing. That -- while that is -- the acquisition is always important. Our #1 acquisition mode is through the stores. Our highest quality customer comes from the stores. Those customers all convert -- not all but a large percentage of them convert to an omni customer. All of those things still exist. Curve is still an enormous growth vehicle for the company. But we also have an enormous opportunity within the core businesses to growth, the studio launches, the dressy, pretty, polished looks. She'll buy everything in our closet. And I think we need to have a very broad-based approach to growth and profit as we move forward.

不，我仍然認為我們絕對是一家成長型公司。我認為確保我們的增長富有成效和盈利是明智的。我認為我們真正關注的事情之一，我會給你一個例子來說明它是如何應用的。人們非常關注渠道獲取營銷。那——儘管如此——收購總是很重要的。我們排名第一的收購模式是通過商店。我們最優質的客戶來自商店。這些客戶都會轉化——不是全部，但其中很大一部分會轉化為全方位客戶。所有這些東西仍然存在。 Curve 仍然是公司巨大的增長工具。但我們在核心業務中也有巨大的增長機會，工作室推出，考究、漂亮、精緻的外觀。她會買下我們衣櫥裡的所有東西。而且我認為，在我們前進的過程中，我們需要有一個基礎非常廣泛的增長和利潤方法。

So it's not one or the other, it's balancing. And I think that we -- as we move forward, we want to make sure that our margin expectations and how we're managing the business from a margin perspective, ensures that we can have to continue that long-term profitable growth, still at a high level of growth.

所以這不是一個或另一個，它是平衡的。而且我認為我們 - 隨著我們前進，我們希望確保我們的利潤率預期以及我們如何從利潤率的角度管理業務，確保我們能夠繼續保持長期盈利增長，仍然處於高水平的增長。

So I'm not changing that model at all, I'm just -- I'm trying to explain our approach, which is more prudent to ensure that we -- before we accelerate something that we're clear what that acceleration means to the ultimate business. And while we're opening the stores, I still think curves to standalone intimate concept. I still think that there's enormous growth there. There's enormous growth in the quarter of the business, the Torrid side of the business as well. And we're committed to making sure that we continue to grow and we continue it profitably.

所以我根本沒有改變那個模型，我只是 - 我試圖解釋我們的方法，這是更謹慎的做法，以確保我們 - 在我們加速某些事情之前，我們清楚加速意味著什麼最終的業務。在我們開店的同時，我仍然認為曲線會轉向獨立的親密概念。我仍然認為那裡有巨大的增長。該業務的季度有巨大的增長，業務的 Torrid 方面也是如此。我們致力於確保我們繼續增長並繼續盈利。

Understood. And I guess more near term, how should we think about sort of the cadence of gross margin second quarter, third quarter, it sounds like maybe more promotions in the near term and maybe some opportunities in the back half. Is that...

明白了。而且我想更近期的是，我們應該如何考慮第二季度、第三季度毛利率的節奏，這聽起來可能在短期內有更多的促銷活動，也許在後半段有一些機會。就是它...

Yes. As Tanner said in his comments, we would expect more promotions in the short term and also some testing of some of these more surgical concepts at -- in conjunction with that. So we can really kind of -- we can determine price elasticity and the customers' appetite for the different types of promotions, which we have an opportunity to address. And then on the back half, we would expect it would be somewhat more moderated.

是的。正如 Tanner 在他的評論中所說，我們預計在短期內會有更多的促銷活動，同時還會對其中一些更具手術性的概念進行一些測試。所以我們真的可以——我們可以確定價格彈性和客戶對不同類型促銷的興趣，我們有機會解決這些問題。然後在後半部分，我們預計它會稍微緩和一些。

Very good. And I guess one quick one. Ideal leverage ratio here, has that changed are you going to prioritize debt paydown at this point?

非常好。我想一個快速的。這裡是理想的槓桿率，這有變化嗎？您此時會優先考慮償還債務嗎？

We're comfortable with (inaudible).

我們對（聽不清）感到滿意。

We're comfortable when we're allocating capital.

我們在分配資金時感到很自在。

Your next question comes from Brooke Roach with Goldman Sachs.

你的下一個問題來自高盛的布魯克羅奇。

Can you provide some additional color on your third priority of efficiency and resource allocation? How do you envision this playing out in terms of SG&A investment in technology and fulfillment versus potentially increasing the rates and marketing spend as you invest behind profitable growth at lower promotions?

您能否就效率和資源分配的第三優先事項提供一些額外的顏色？您如何看待這種情況在 SG&A 技術和履行方面的投資與潛在增加費率和營銷支出方面的結果，因為您在較低的促銷活動中投資於盈利增長？

Sure. So when we think about resource allocation, it's really about ensuring we're making investments in infrastructure that really help us meet customer demand streamline our processes and support long-term growth. As of now, we sort of focused on investing resources and distribution capacity and some technology upgrades, which is e-comm site enhancements and looking at our ERP systems.

當然。因此，當我們考慮資源分配時，實際上是要確保我們對基礎設施進行投資，真正幫助我們滿足客戶需求，簡化我們的流程並支持長期增長。截至目前，我們有點專注於投資資源和分銷能力以及一些技術升級，即電子通信站點增強和查看我們的 ERP 系統。

As an example, we've implemented infrastructure and system enhancement in our DC, it will significantly increase our daily fulfillment the changes are really sort of focused on reconfiguration to increase throughput and productivity and should resolve some of the shipping delay issues that you're seeing through customer sentiment online.

例如，我們在我們的 DC 中實施了基礎設施和系統增強，這將顯著提高我們的日常履行這些變化實際上有點側重於重新配置以提高吞吐量和生產率，並且應該解決您正在解決的一些運輸延遲問題在線看透客戶情緒。

And from a marketing perspective, we're going to continue to invest in marketing. At the same time, we're going to be clear that the goal of marketing is to build the ultimate customer file, build retention and build frequency. And we're going to invest in all aspects of that from acquisition, retention, reactivation frequency and to reduce attrition. So we have, again, fundamentally the same goal, which is to build the customer file. We also want to make sure we're building that customer file with very high-quality customers. And so the investments will continue, not the same right as the first quarter, but we still expect to be spending about -- this year, about 5% on marketing. Does that answer your question, Brooke?

從營銷的角度來看，我們將繼續投資於營銷。同時，我們要明確營銷的目標是建立最終的客戶檔案，建立保留率和建立頻率。我們將在收購、保留、重新激活頻率和減少人員流失等各個方面進行投資。因此，我們再次從根本上實現了相同的目標，即建立客戶檔案。我們還想確保我們正在與非常高質量的客戶建立客戶檔案。因此，投資將繼續，與第一季度不同，但我們仍預計今年將花費大約 5% 用於營銷。這能回答你的問題嗎，布魯克？

Yes. And if I could squeeze in one follow-up. Would love to hear a little bit more about how you're thinking about AUC inflation into the back half. What are you seeing in terms of rate of cost increases, both in terms of raw materials and freight in the back half of this year and into early 2023?

是的。如果我能擠進一個後續行動。很想多聽聽您是如何考慮後半部分的 AUC 通貨膨脹的。在今年下半年和 2023 年初的原材料和運費方面，您對成本增長率有何看法？

We see it continuing through the remainder of the year, and it's been included in our guidance for the year. On a year-over-year basis, we believe that the product cost inflation to be somewhere close to 10% on a year-over-year basis.

我們認為它會持續到今年剩餘時間，並且已包含在我們今年的指導中。與去年同期相比，我們認為產品成本通脹率接近 10%。

And we are able to bridge that gap with increased initial retail. And so we will continue to thoughtfully and carefully reconsider retail as it applies to closing the gap on higher cost.

我們能夠通過增加初始零售來彌合這一差距。因此，我們將繼續深思熟慮地重新考慮零售業，因為它適用於縮小與更高成本的差距。

Your next question comes from Kimberly Greenberger with Morgan Stanley.

你的下一個問題來自摩根士丹利的 Kimberly Greenberger。

Okay. Great. Lisa, I wanted to dig a little bit more into marketing, if we could. If I'm sort of reading between the lines of what you're saying, it sounds like you're -- you've been most successful acquiring and retaining customers, meaning minimizing the churn rate for those customers acquired in store, whereas there has been maybe success at acquiring customers online, but you have maybe a very high churn rate. Am I reading you correctly on those? Are those the correct assumptions that I'm walking away with. And do you think that some of the shipping issues are at play here in terms of the churn in digital customer acquisition? Because I would think that there's such a vast market out there for this product that so many women -- so many of those women don't necessarily shop at the mall.

好的。偉大的。麗莎，如果可以的話，我想更深入地研究市場營銷。如果我有點理解你所說的話，聽起來你是——你在獲取和留住客戶方面做得最成功，這意味著最大限度地減少了在店內獲得的那些客戶的流失率，而也許在網上獲取客戶方面取得了成功，但您的客戶流失率可能非常高。我對你的理解正確嗎？這些是我要放棄的正確假設嗎？您是否認為一些運輸問題在數字客戶獲取方面的流失方面發揮了作用？因為我認為這種產品有如此廣闊的市場，以至於有如此多的女性——其中很多女性不一定會在商場購物。

So there has to be other ways of talking to those women, whether it's through a sort of more developed influencer network or some other form of social commerce. But I'm just wondering, I don't know if you've had time to sort of rethink if you with Vivian, for example, together, have had time to sort of rethink marketing strategies and where you take this going forward?

因此，必須有其他方式與這些女性交談，無論是通過更發達的影響者網絡還是其他形式的社交商務。但我只是想知道，我不知道你是否有時間重新考慮一下，例如，如果你和 Vivian 一起，是否有時間重新考慮營銷策略以及你將如何推進？

Sure. Thanks, Kimberly. Broadly on the marketing strategy, I think there -- if you walk away with nothing else, what I would ask you a lot is we have many different ways of filling the customer file. And the efforts that we're -- the company was focused on was very, very high top of funnel consideration mindset. And that was the big investment that went into first quarter that we're not going to continue that focused level of high funnel investment in marketing. What I'm asking the team to do and have met directly face-to-face with the digital agencies that we use is really to focus on a 360 approach to acquisition retention reactivation frequency. And because we can still have customer file, we have many different tech points that we can use to maintain and build that customer file. And I want to -- we have a real opportunity to do that in a more comprehensive, integrated strategic way. My ultimate goal is to build the customer file with high-quality, highly retentive high-frequency customers. So that is fundamentally the marketing goal. That's the brief, and we have many different tactics.

當然。謝謝，金佰利。我認為，從廣泛的營銷策略來看——如果你一無所獲，我想問你的是，我們有很多不同的方式來填充客戶檔案。我們的努力 - 公司專注於非常非常高的漏斗考慮心態。這是進入第一季度的大筆投資，我們不會繼續在營銷方面進行高漏斗投資的重點水平。我要求團隊做的，並與我們使用的數字代理商直接面對面會面，實際上是專注於 360 度方法來獲取保留重新激活頻率。而且因為我們仍然可以擁有客戶檔案，所以我們可以使用許多不同的技術點來維護和構建該客戶檔案。我想——我們有真正的機會以更全面、綜合的戰略方式來做到這一點。我的最終目標是與高質量、高保留率的高頻客戶建立客戶檔案。所以這基本上是營銷目標。這就是簡要說明，我們有許多不同的策略。

Part of that also is acknowledge the store's role in customer acquisition, the quality of the customer that comes there and that there should be -- there will be a shift in some small way to drive customers to the store because of that quality of acquisition has the highest conversion to omni customers long term.

其中一部分也是承認商店在客戶獲取中的作用，來這裡的客戶的質量以及應該有的 - 由於獲取的質量已經發生了一些小的轉變，以吸引客戶到商店從長遠來看，對全方位客戶的轉化率最高。

I do agree with you, our Net Promoter Score in stores for the store experience is exorbitantly high. It's -- I don't know if I can give it to you, but it's in the 90s, it's in the mid-90s for the experience in the store environment. It isn't echoed as effectively in our digital experience. And one of our goals and 1 of the things that Tanner has been talking about in terms of investment will even out that score. I think I would also highlight our very low return rate. Our return rate is still 9%. And so that idea that it's still a product that they very much like and that fits them well. And so that is a huge accomplishment, but I think we are making the investments, and we'll start to see some improvements in this quarter in terms of being able to ship to the customer very, very quickly. And that will, I think, resolve a lot of the issues that we have in the differentiation in line. As we bring up that experience online and make it equivalent to the experience that she has in the stores, they're more equivalent to the experience that she has in the stores.

我同意你的看法，我們在商店中的商店體驗淨推薦值非常高。這是——我不知道我是否可以給你，但它是在 90 年代，在 90 年代中期的商店環境體驗。它在我們的數字體驗中並沒有得到有效的回應。我們的目標之一和 Tanner 在投資方面一直在談論的事情之一將平衡這個分數。我想我還要強調我們非常低的退貨率。我們的退貨率仍然是9%。因此，認為它仍然是他們非常喜歡並且非常適合他們的產品的想法。所以這是一個巨大的成就，但我認為我們正在進行投資，我們將在本季度開始看到在能夠非常、非常快地向客戶發貨方面的一些改進。我認為，這將解決我們在差異化方面遇到的許多問題。當我們在網上提出這種體驗並使其等同於她在商店中的體驗時，它們更等同於她在商店中的體驗。

I think that expansion of acquisition and retention on the digital side will continue to improve. So I don't -- I see it as an opportunity and we're investing in systems and processes and capabilities and capacity to be able to improve the speed of shipping product to that customer so that we can also build frequency and retention.

我認為數字方面的收購和保留的擴展將繼續改善。所以我不 - 我認為這是一個機會，我們正在投資系統和流程以及能力和能力，以便能夠提高向該客戶運送產品的速度，以便我們也可以建立頻率和保留。

Your next question comes from Oliver Chen with Cowen and Company.

你的下一個問題來自 Cowen and Company 的 Oliver Chen。

This is Jonna on for Oliver. Could you just talk about which category performed well during the quarter? And if you think you have the ability to chase into some of the trends and categories that are working better in the second half? And maybe also touch on the opportunities to take pricing. I know you mentioned you have some room, but how do you think about that across your portfolio? And how much room there is going forward?

這是奧利弗的喬娜。您能否談談本季度哪個類別表現良好？如果您認為自己有能力追逐下半年表現更好的一些趨勢和類別？也許還會涉及定價的機會。我知道你提到你有一些空間，但你如何看待你的投資組合？前進的空間有多大？

Some of our best categories for the quarter were dresses. Anything that was occasion-based was great. Accessories is also an area, particularly shoes that we see expansion in. And anything that -- as I said, that was more occasion-based. Slim is doing well. We're happy with that. So I think that we did not shift quite enough into those more polished or occasion-based categories, and we have as we move into the back half of the year, really happy with how they bought the back half of the year and the types of product categories are reflected based on the selling that we're seeing in this half of the year where to work, dressy, those types of things. So I feel that we're well positioned in the back half to capitalize on the trends that we're seeing in the front half.

本季度我們最好的一些類別是連衣裙。任何基於場合的東西都很棒。配飾也是一個領域，尤其是我們看到擴張的鞋子。以及任何——正如我所說的，這更基於場合。斯利姆做得很好。我們對此很滿意。因此，我認為我們沒有足夠多地轉向那些更精緻或基於場合的類別，而且當我們進入下半年時，我們對他們如何購買下半年的方式和類型感到非常滿意產品類別是根據我們在這半年看到的工作地點、著裝等類型的銷售情況反映出來的。所以我覺得我們在後半部分處於有利位置，可以利用我們在前半部分看到的趨勢。

Got it. And just on pricing, how much do you think you have to increase pricing?

知道了。就定價而言，您認為您必須提高多少定價？

I think we have some room in particular categories. I think we have room. And I won't go category by category. I've seen where we have rate prices that we've actually had good results. So we're focused on the team, when you look at the value of the product and make sure that the value equation remains the same or we think that it holds a high value for the customer where we're pricing good. So that's under constant evaluation. But I do think we have room to take some prices up in the back half.

我認為我們在特定類別中有一些空間。我想我們有空間。我不會逐個分類。我已經看到我們在哪裡定價，我們實際上已經取得了很好的結果。因此，我們專注於團隊，當您查看產品的價值並確保價值等式保持不變時，或者我們認為它對我們定價良好的客戶具有很高的價值。所以這是在不斷的評估中。但我確實認為我們有空間在後半段提高一些價格。

Your next question comes from Dana Telsey with Telsey Advisors.

您的下一個問題來自 Telsey Advisors 的 Dana Telsey。

Lisa, the framework -- the holistic framework that you set out regarding the adjustments to the business that you're making, whether it's the surgical promotions, the marketing, the efficiencies and the team -- as you think of the markers as we go through the balance of this year, what should we be looking for to say, check the box, check the box? And how do you embed this with the macro environment that you're navigating with supply chain and inventory levels?

麗莎，這個框架——你為你正在做的業務調整制定的整體框架，無論是手術促銷、營銷、效率和團隊——正如你在我們前進的過程中想到的標記在今年餘下的時間裡，我們應該說些什麼，勾選方框，勾選方框？您如何將其嵌入到您正在處理供應鍊和庫存水平的宏觀環境中？

Thank you, Dana. I think that I'm going to take the end of your question first. We've been -- the business has been managing in a very nimble way for 2.5 years now, and that continues. So I think we've all developed the skill set to be able to be nimble after different macro pressures coming, but we've certainly had a lot of shipping and cost of goods challenges for a while now. So I'm less concerned about that broadly. What I would say is in terms of marker, I would expect to see more launch messaging. I would expect to see more product franchise messaging. I would expect to see more storytelling. I would expect to see influencers that are guided towards store events. I would expect to see -- I can't give you a time line on kind of margin shifts until I can read more what we learned in the second quarter and the third quarter. But I was -- you guys are all very good about watching our marketing, our promotional cadence, and it should be more focused on storytelling as we move into the third and fourth quarter.

謝謝你，丹娜。我想我要先結束你的問題。我們一直 - 2.5 年來，該業務一直以非常靈活的方式進行管理，而且這種情況仍在繼續。因此，我認為我們都已經發展出一套技能，能夠在不同的宏觀壓力到來後變得靈活，但我們現在肯定已經遇到了很多運輸和商品成本方面的挑戰。所以我不太關心這一點。我要說的是就標記而言，我希望看到更多的啟動消息。我希望看到更多的產品特許經營信息。我希望看到更多的講故事。我希望看到有影響力的人被引導參加商店活動。我希望看到 - 在我可以閱讀更多我們在第二季度和第三季度學到的知識之前，我不能給你一個關於利潤率變化的時間表。但我是——你們都非常擅長觀察我們的營銷、我們的促銷節奏，而且隨著我們進入第三和第四季度，它應該更側重於講故事。

That being said, we always have the opportunity if the macro pressures are there to be slightly more promotional in order to -- based on the competitive scenario that we might face in the broader marketplace. So we will be nimble in those terms. But our goal is we have world-class fit. We have product that she wants that she fills her closet with, and we want to make sure that we have the opportunity to tell her that story and sell the product on its own merit and make sure that we focus on the opposite side on the customer file development, and that will kind of offset our need for high levels of promotionality to continue to build that file.

話雖這麼說，如果存在宏觀壓力，我們總是有機會進行更多的促銷活動，以便——根據我們在更廣闊的市場中可能面臨的競爭情景。所以我們在這些方面會很靈活。但我們的目標是擁有世界一流的健康水平。我們有她想要裝滿衣櫥的產品，我們希望確保我們有機會告訴她這個故事並根據產品本身的優點銷售產品，並確保我們關注客戶的另一面文件開發，這將抵消我們對高水平促銷的需求，以繼續構建該文件。

Got it. And then on the inventory levels, Lisa and Tanner, what should we be thinking about inventory growth as you move through the year?

知道了。然後關於庫存水平，Lisa 和 Tanner，我們應該如何考慮今年的庫存增長？

So we are comfortable with the position of the inventories within remainder of the year. We are going to have to be more promotional in Q2 so that we're doing clean-off of our inventory heading to the post summer time frame. But we feel like we've planned receipts in the back half of the year such that we're going to be comfortable with our inventory position Q3 to Q4 time frame.

因此，我們對今年剩餘時間內的庫存狀況感到滿意。我們將不得不在第二季度進行更多的促銷活動，以便我們在夏季後的時間框架內清理我們的庫存。但我們覺得我們已經計劃在今年下半年收貨，這樣我們就會對第三季度到第四季度的庫存狀況感到滿意。

Yes, our reseats are in the back half or below last year, and I'm happy with the categories that we've invested in. And so that we should be -- I think we can turn faster, obviously, even in the back half of this year, on a year-over-year basis. And our goal will be to make sure that we are investing appropriately in inventory to also drive the highest level of productivity in the overall business.

是的，我們的重新定位在去年的後半部分或以下，我對我們投資的類別感到滿意。所以我們應該 - 我認為我們可以更快地轉向，顯然，即使在後面今年過半，按年計算。我們的目標是確保我們在庫存方面進行適當投資，以推動整體業務的最高生產力水平。

Ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the call back to Lisa Harper, CEO, for closing remarks.

女士們，先生們，我們的問答環節已經結束，我想把電話轉回給首席執行官麗莎·哈珀，聽取結束語。

Thank you, everyone, for joining us today. I really appreciate your focus on Torrid and our time together. We'll look forward to our next call with you at the end of the summer. Have a great season, everybody. Thanks.

謝謝大家今天加入我們。我真的很感謝你對 Torrid 的關注以及我們在一起的時光。我們期待在夏末與您再次通話。祝大家度過一個美好的賽季。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

今天的會議到此結束。此時您可以斷開線路。謝謝大家的參與。