Designer Brands Inc (DBI) 2024 Q3 法說會逐字稿

Good morning and welcome to the Designer Brands third quarter, 2024 results conference call.

早安，歡迎參加設計師品牌 2024 年第三季業績電話會議。

(Operator Instructions) Please also note, today's event is being recorded.

（操作員指示）另請注意，今天的活動正在被記錄。

At this time, I'd like to turn the floor over to Dustin Hauenstein, Senior Vice President of Finance.

現在，我想把發言權交給財務高級副總裁達斯汀·豪恩斯坦 (Dustin Hauenstein)。

Please go ahead.

請繼續。

Good morning.

早安.

Earlier today, the company issued a press release comparing results of operations for the 13-week period ended November 2, 2024 to the 13-week period ended October 28, 2023.

今天早些時候，該公司發布了一份新聞稿，比較了截至 2024 年 11 月 2 日的 13 週與截至 2023 年 10 月 28 日的 13 週的經營業績。

Please note that the financial results that we will be referencing during the remainder of today's call excludes certain adjustments recorded under GAAP unless specified otherwise.

請注意，除非另有說明，我們在今天電話會議剩餘時間內將參考的財務結果不包括根據 GAAP 記錄的某些調整。

For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.

有關 GAAP 與調整後收益的完整對賬，請參閱我們的新聞稿。

Additionally, please note that remarks made about future expectations, plans and prospects of the company constitute forward-looking statements.

此外，請注意，有關公司未來預期、計劃和前景的言論構成前瞻性陳述。

Results may differ materially due to the various factors listed in today's press release and the company's public filings with the SEC.

由於今天的新聞稿和公司向美國證券交易委員會提交的公開文件中列出的各種因素，結果可能會存在重大差異。

The company assumes no obligation to update any forward-looking statements.

該公司不承擔更新任何前瞻性陳述的義務。

Joining us today are Doug Howe, Chief Executive Officer; and Jared Poff, Chief Financial Officer.

今天與我們一起參加的是執行長 Doug Howe；以及財務長 Jared Poff。

Now, let me turn the call over to Doug.

現在，讓我把電話轉給 Doug。

Thank you everyone for joining us this morning.

感謝大家今天早上加入我們。

We were pleased with our strong start to the third quarter, anchored on the success of back to school season, which was fueled by our athletic and athleisure offerings and led to positive comps in August.

我們對第三季的強勁開局感到滿意，這得益於返校季的成功，得益於我們的運動和運動休閒產品的推動，並在 8 月份取得了積極的業績。

This gave us confidence that we had reached the inflection point in our business that we have been working towards.

這讓我們有信心，我們已經達到了我們一直在努力實現的業務轉折點。

However, we saw a tough transition into the fall seasonal business as a result of unseasonably warm weather.

然而，由於天氣異常溫暖，我們看到秋季季節性業務的轉型十分艱難。

This was exacerbated by an ongoing pullback in consumer discretionary spending due to sustained uncertainty in the macro environment.

由於宏觀環境持續不確定，消費者可自由支配支出持續回落，進一步加劇了這種情況。

While we saw demand below expectations across most of our categories, our boot business, while already planned down, approximately 15% was down 27%.

雖然我們發現大多數類別的需求都低於預期，但我們的靴子業務雖然已經計劃下降，但實際上下降了約 15%，即 27%。

However, according to Circana for Q3 footwear sales excluding boots remain flat to prior year in the footwear market.

然而，根據 Circana 的數據，第三季鞋類銷售額（不含靴子）與去年同期持平。

While DSW footwear sales excluding boots grew 8% versus prior year, outpacing the footwear market results.

而DSW鞋類（不包括靴子）的銷售額比去年成長了8%，超過了鞋類市場的表現。

This was largely due to our athletic category continuing to comp positive throughout the quarter.

這主要是因為我們的運動類別在整個季度持續保持積極表現。

Additionally, in US retail, we saw growth across key categories in the quarter, like women's dress, luxury athletic and kids.

此外，在美國零售業，我們看到本季女裝、奢侈運動和兒童等主要類別均實現成長。

And our top eight brands, seven of which were at leisure continue to lead the way.

我們的八大品牌（其中七個為休閒品牌）持續保持領先地位。

As we navigate through the remainder of the year, we are mindful that pressures are likely to continue.

當我們度過今年剩餘的時間時，我們意識到壓力可能會持續存在。

As such, we will continue to focus on those initiatives within our control and lean into areas where we are winning, and the customer is shopping.

因此，我們將繼續專注於我們能夠控制的舉措，並傾向於我們正在獲勝的領域和客戶正在購物的領域。

I will get into the strategy in a moment.

我馬上就會開始講解該策略。

But I want to extend a sincere thank you to our employees for their diligence and commitment in applying our refreshed strategy.

但我要向我們的員工表達誠摯的謝意，感謝他們在實施我們新的策略過程中的勤奮和奉獻。

Let me first touch on our consolidated results.

首先讓我談談我們的綜合業績。

In the third quarter, our sales were down 1.2% compared to last year, and our costs were down 3.1% at a consolidated level.

第三季度，我們的銷售額比去年下降了 1.2%，綜合成本下降了 3.1%。

This was primarily driven by a negative 2.8% comp in our US retail segment driven by the dynamics I discussed earlier.

這主要是由於我們美國零售部門的年減 2.8%，這由我之前討論過的動態因素造成。

Despite these external pressures, we continue to see our strategic priorities yielding strong results.

儘管面臨這些外部壓力，我們的策略重點仍能取得強勁成果。

According to Circana for Q3 DSW footwear sales were in-line with the footwear market versus last year, outpacing the market in performance and leisure footwear as well as in [dress] occasion footwear.

據 Circana 稱，DSW 第三季鞋類銷售額與去年同期的鞋類市場表現一致，在性能鞋、休閒鞋以及正裝鞋方面均超過了市場表現。

This helped to offset negative boot performance at DSW.

這有助於抵消 DSW 的負面啟動性能。

Importantly, our adjusted operating income improved roughly 40% compared to last year, taking us to $43.6 million.

重要的是，我們的調整後營業收入比去年增長了約 40%，達到 4,360 萬美元。

Our profitability also improved sequentially as a result of ongoing expense optimization and the reversal of incentive compensation recognized in previous quarters, following softer than expected performance.

由於持續的費用優化和前幾季確認的激勵薪酬的逆轉，我們的獲利能力也比預期有所提高。

Turning to our retail business, US retail sales were down 2.6% compared to last year, comp sales were down 2.8% in the quarter driven by continued growth in athletic and athleisure which was more than offset by weaknesses in seasonal.

談到我們的零售業務，美國零售額與去年相比下降了 2.6%，本季同店銷售額下降了 2.8%，這主要是由於運動和運動休閒市場的持續增長，但被季節性疲軟所抵消。

We aren't the only ones who felt this weakness, according to Circana, both DSW and the footwear market were down double digits and boot sales for Q3.

我們並不是唯一感受到這種疲軟的人，根據 Circana 的數據，第三季 DSW 和鞋類市場以及靴子銷售額均出現兩位數下降。

As we continue to evolve our assortment, seasonal still remains an area where we are significantly penetrated, therefore, overly affecting our consolidated results.

隨著我們不斷改進產品組合，季節性仍然是我們受到嚴重影響的領域，因此對我們的綜合業績產生了巨大影響。

We noted to you last quarter that we had taken unprecedented material actions to reduce our seasonal assortment into the fall.

我們在上個季度向您指出，我們已採取前所未有的重大措施，以減少秋季的季節性品種。

As a result of the continued weakness, we've seen, we have proactively pulled back even further on fourth quarter, receipts in seasonal as part of our efforts to ensure we are moving forward with a healthy inventory position by the end of the year.

由於我們看到持續的疲軟，我們主動進一步削減了第四季度的季節性收貨，以確保我們在年底前保持健康的庫存狀況。

Our target for the end of Q4 is to have inventory flat to up low single digits compared to last year.

我們第四季末的目標是庫存量與去年同期相比持平或成長個位數。

It is clear, more decisive actions are needed to decrease seasonal penetration an ongoing basis.

顯然，需要採取更果斷的行動來持續減少季節性滲透。

And as such, we are planning accordingly for 2025.

因此，我們正在為 2025 年制定相應的規劃。

We are committed to more aggressively leveraging consumer insights to lean into our greatest areas of differentiation.

我們致力於更積極地利用消費者洞察力來挖掘我們最大的差異化領域。

This includes prioritizing investments and focusing on areas where we know we differentiate ourselves including our stores.

這包括優先考慮投資並專注於我們知道自己與眾不同的領域，包括我們的商店。

As we continue to focus on executing on those things within our control.

我們將繼續專注於執行那些我們能夠控制的事情。

I'm going to briefly walk through our efforts against DSWs three strategic pillars in the third quarter.

我將簡要介紹第三季我們針對 DSW 三大策略支柱所做的努力。

Reinvigorating our assortment, elevating our marketing and enhancing our omni channel shopping experience.

重振我們的產品組合，提升我們的行銷能力並增強我們的全通路購物體驗。

Starting with our assortment, our top eight brands continue to be a primary driver of positive performance with sales of 27% compared to the third quarter last year.

從我們的產品組合開始，我們的八大品牌繼續成為積極業績的主要推動力，銷售額與去年第三季相比增長了 27%。

As anticipated, we saw continued strength in athletic with both adults and kids growing double digits.

正如預期的那樣，我們看到成人和兒童的運動能力持續增強，都實現了兩位數的成長。

Our athletic penetration increased by nearly 5 points versus the prior year, and we see remaining white space in this category.

我們的運動滲透率比前一年增加了近5個百分點，我們看到這一類別仍有空白。

Athletic socks also continue to perform well up triple digits.

運動襪的銷售量也持續保持三位數的良好成長。

Excitingly, we also saw a positive mid-single digit comp in women's dress.

令人興奮的是，我們也看到女裝銷量出現了中等個位數的正成長。

As we head into the holiday season, we have also made investments in highly giftable brands including several that will be merchandise in our cozy shop at the front of our stores.

隨著節日季節的臨近，我們也對一些非常適合送禮的品牌進行了投資，其中幾個品牌將在我們商店前面的舒適商店中擺放商品。

As I'll detail shortly, we are leaning into holiday like never before DSW, partnering with key national brand partners to be loud, exciting and most importantly in stock on the most desirable brands for this time of year.

我稍後會詳細介紹，我們前所未有地傾向於假期，DSW 與主要的國家品牌合作夥伴合作，熱鬧、令人興奮，最重要的是，儲備一年中這個時候最受歡迎的品牌。

Moving to marketing, our ability to amplify our evolved assortment is more critical than ever.

在行銷方面，擴大我們不斷發展的產品組合的能力比以往任何時候都更加重要。

And our new Chief Marketing Officer has hit the ground running.

我們的新任首席行銷長已開始投入工作。

We've had a number of successes in the third quarter including starting off strong with back to school season, deploying celebrity and influencers to share their picks for the season and a curated online back to school shopping guide to cater to the needs of students, parents and teachers of all ages.

我們在第三季度取得了許多成功，包括開學季開門紅、邀請名人和有影響力的人士分享他們為本季挑選的商品，以及精心策劃的在線開學購物指南，以滿足學生的需求，各個年齡段的家長和老師。

The approach drove $26.1 billion media impressions, compared to $15 billion last year at the same time.

這一做法帶來了價值 261 億美元的媒體曝光量，而去年同期為 150 億美元。

Kicking off the fall with an omni channel campaign titled Fall Trends that guided customers towards the trendiest styles from over the knee boots to the color red to fierce animal prints and heavy metal details.

透過名為「秋季潮流」的全通路活動拉開秋季序幕，引導顧客了解最潮流的款式，從過膝靴到紅色，再到兇猛的動物圖案和重金屬細節。

The results of these efforts included $67 billion earned media impressions, the equivalent of $4 billion in advertising value from top tier outlets including the Today Show, US Weekly, and PureWow.

這些努力的成果包括 670 億美元的媒體曝光量，相當於《今日秀》、《美國周刊》和 PureWow 等頂級媒體的 40 億美元廣告價值。

Improving and enhancing our social media channels and engagement.

改善和增強我們的社交媒體管道和參與。

September was a top performing month, and we are seeing overall channel engagement of 500%, monthly engagement of 4% and a new follower rate of nearly 7%.

9 月是表現最好的一個月，我們看到整體頻道參與度達到 500%，每月參與度達 4%，新粉絲率接近 7%。

Paired with our enhanced influencer and content strategy.

與我們增強的影響力和內容策略相結合。

This resulted in an average of 15 million views across our social content monthly.

這使得我們的社群內容每月平均瀏覽量達到 1500 萬次。

Helping our DSW brand to rise in the ranks of strategic target audiences, specifically men's and kids’ footwear consumers and has improved our brand awareness ranking with these key audiences.

幫助我們的 DSW 品牌在策略目標受眾，特別是男士和兒童鞋類消費者中的排名上升，並提高了我們在這些關鍵受眾中的品牌知名度排名。

While we believe we are early on in our journey and have more room to improve these early signs are encouraging.

雖然我們相信我們的旅程才剛開始並且還有很大的進步空間，但這些早期跡像是令人鼓舞的。

And finally, bringing on a world class brand agency Crispin as our new brand strategy partner initiating robust work aimed at elevating the re-energizing DSW brand and improving overall awareness.

最後，我們引進世界級品牌代理公司 Crispin 作為我們的新品牌策略合作夥伴，開展強有力的工作，旨在提升 DSW 品牌的活力並提高整體知名度。

To that end our efforts around our third pillar to enhance our omni channel shopping experience for DBI customers remain a core strategic priority.

為此，我們圍繞第三支柱的努力——為 DBI 客戶提供增強全通路購物體驗——仍然是我們的核心策略重點。

We know that roughly 70% of our customers start their search online and still go to the stores.

我們知道，大約 70% 的客戶先在網路上開始搜索，然後才會前往商店。

Our stores also remain our largest source of net new customer acquisition.

我們的商店仍是我們淨新增客戶獲取的最大來源。

To fully take advantage of our omni channel platform in the quarter, DSW leaned into being a back to school destination, both online and in particular in stores where we established a large and impactful visual presence with impressive and attention grabbing collateral.

為了充分利用我們在本季度的全通路平台，DSW 傾向於成為返校目的地，無論是在線還是在商店中，我們都建立了龐大而有影響力的視覺形象，並具有令人印象深刻和吸引注意力的附屬品。

So with these new learnings, let's talk about what we're doing in the US to mitigate headwinds as we move through the fourth quarter.

因此，基於這些新的知識，讓我們來談談我們在美國正在採取哪些措施來緩解第四季度面臨的阻力。

Our team has identified that we had a significant opportunity to execute a gifting strategy this holiday, this is largely driven out of our accessories area and encompasses socks, tight hats and cold weather wear.

我們的團隊發現，我們在這個假期有一個很好的機會來執行送禮策略，這主要來自我們的配件領域，包括襪子、緊身帽和寒冷天氣的服裝。

It will include a completely reimagined line and several updates to our gifting and impulse product offerings that can only be found in stores.

它將包括一條完全重新設計的產品線和幾項對只能在商店中找到的禮品和衝動產品的更新。

This will be accompanied by creative collateral to support a gift guide, key trends, prioritize brands and other relevant holiday messaging.

這將伴隨創意附屬品來支持禮品指南、主要趨勢、優先品牌和其他相關節日資訊。

We have an action pack consumer engagement plan that will showcase great value, top trends and the season's best giftable.

我們有一個行動包消費者參與計劃，將展示巨大的價值、頂級趨勢和本季最好的禮物。

And we are amplifying this with a 360-degree holiday campaign that evolves with the customers’ needs throughout the extended period.

我們將透過 360 度的假期活動來擴大這一範圍，該活動將在延長的期間內隨著客戶的需求而不斷發展。

While sales have been relatively in-line with projections, we've seen an uptick in margins as we've become less promotional compared to last year.

雖然銷售額與預期基本一致，但與去年相比，我們的促銷力道有所減少，因此利潤率上升。

Turning to our Canadian business.

談到我們的加拿大業務。

In Canada, boots are even more impactful to our fall business, especially technical and cold weather boots, extremely unseasonable warm weather led to a break in the usual third quarter trends with boots down, double digits and sandal sales up nearly 40%.

在加拿大，靴子對我們的秋季業務影響更大，尤其是技術靴和寒冷天氣靴，極不合時宜的溫暖天氣導致第三季度的正常趨勢被打破，靴子的銷量下降了兩位數，而涼鞋的銷量增長了近40%。

Given the typical boot buying trends in the Canadian market are so unique and historically have not been impacted by weather.

鑑於加拿大市場典型的靴子購買趨勢非常獨特，並且從歷史上看並不受天氣的影響。

We did not plan inventory down in this geography for the quarter as we did in the US.

與美國不同，我們本季沒有計劃減少該地區的庫存。

Therefore, we felt an outsized impact.

因此，我們感受到了巨大的衝擊。

Similar to the US, athletic and casual continue to post positive performance.

與美國類似，運動和休閒服裝繼續表現良好。

Despite the break in the usual seasonality, the third quarter marked nine straight months of market share gains in Canada, driven by strength in kids.

儘管打破了通常的季節性規律，但第三季加拿大市場份額仍連續九個月成長，這主要得益於兒童市場的強勁成長。

This quarter, we opened two new shoe company stores in Canada, bringing us to a net eight new store year-to-date on top of the 28 Rubino stores.

本季度，我們在加拿大開設了兩家新的鞋業公司商店，使我們今年迄今在 28 家 Rubino 商店的基礎上又淨增 8 家新店。

Now to our brand portfolio segment, as referenced on prior earnings calls, our efforts to reduce costs right size, the organization expand margins, streamline and simplify the way we work remain the top priorities in 2024.

現在談到我們的品牌組合部門，正如先前的收益電話會議中所提到的，我們努力降低成本，擴大組織利潤率，精簡和簡化我們的工作方式仍然是 2024 年的首要任務。

To this end, we continue to evaluate our sampling and design process to improve skew productivity and drive margin improvement.

為此，我們繼續評估我們的採樣和設計流程，以提高偏差生產力並提高利潤率。

Historically, our adoption rate of design proposals was roughly 20% and we are energized by significant improvement we've seen with a 50% adoption rate for our spring 25 collection, a number we plan to take even higher over the long term.

從歷史上看，我們的設計提案的採用率大約為20%，而我們看到的顯著進步讓我們備受鼓舞，2025 年春季系列的採用率已達到50%，我們計劃從長遠來看將這一數字提高得更高。

Successes in these areas led to a meaningful improvement in earnings contribution from the segment.

這些領域的成功使得該部門的獲利貢獻顯著提升。

As we look forward, we are positioned for continued growth as we build upon this foundation.

展望未來，我們將在此基礎上繼續發展。

We continue to be excited about the growth we are seeing in our Topo Athletic and Jessica Simpson brand specifically, Topo athletic of 66% in net sales for the quarter continues to build momentum as we expand our distribution and raise product awareness supported by our increase in marketing investments.

我們繼續對 Topo Athletic 和 Jessica Simpson 品牌的成長感到興奮，特別是 Topo Athletic 本季度淨銷售額增長了 66%，隨著我們擴大分銷範圍並提高產品知名度，這一勢頭繼續增強，這得益於我們行銷投資。

Furthermore, there is a lot of buzz around the running category and Topo is front and center, driving the excitement and offering customers more comfort.

此外，跑步鞋類別也備受關注，而 Topo 則位居中心位置，引領潮流並為顧客提供更多舒適感。

Jessica Simpson did well as we saw strength in our special occasion wear with sales up 14%.

傑西卡辛普森 (Jessica Simpson) 表現不俗，特殊場合服裝銷量上漲 14%。

As I conclude, I am pleased with the way our business has continued to execute successfully on our strategic priorities.

最後，我對我們的業務能夠繼續成功執行我們的策略重點感到非常高興。

We remain focused on continuing to create the right discipline and performance within our retail and brand businesses and are excited about our long-term path to profitable growth.

我們將繼續專注於在零售和品牌業務中繼續創造正確的紀律和績效，並對我們的長期獲利成長道路感到興奮。

I am confident the steps we are taking will set us up for improved performance over the long term as these headwinds abate.

我相信，隨著這些不利因素逐漸減弱，我們正在採取的措施將使我們在長期內提高業績。

With that.

就這樣。

I'll turn it over to Jared.

我將把它交給賈里德。

Jared?

賈里德？

Thank you, Doug and good morning, everyone.

謝謝你，道格，大家早安。

We continue to be pleased with the results of our investment areas that we believe will support our outperformance versus the market in those areas even while challenges persist.

我們對我們的投資領域的表現感到滿意，儘管挑戰依然存在，但我們相信這些投資領域的表現將支持我們在這些領域的表現優於市場。

Let me provide a bit more detail on our financial results from the third quarter followed by an update to our annual guidance.

讓我詳細介紹一下我們第三季的財務業績，然後更新我們的年度指引。

For the third quarter of fiscal 2024, net sales of $777 million were down 1.2% versus the prior year period as reported.

據報道，2024 財年第三季的淨銷售額為 7.77 億美元，較去年同期下降 1.2%。

And we're down 3.1% on a 13-week comparable basis.

以 13 週可比價格計算，我們下降了 3.1%。

In our US retail segment, comps were down 2.8% in the third quarter.

在我們的美國零售領域，第三季同店銷售額下降了 2.8%。

As mentioned, our performance was bolstered by our back-to-school season which saw double digit comps in athletic and kids.

如上所述，我們的表現因開學季而得到提升，運動和兒童項目的比賽成績均達到兩位數。

Unfortunately, this strong performance was more than offset by negative comps in seasonal categories.

不幸的是，這一強勁表現被季節性類別的負面表現所抵消。

Our Canada retail segment comps were down 4.6% in the third quarter driven by unseasonably warm weather during what is usually a heavy boot sales season as well as continued macro challenges that have led to a reduction in overall consumer discretionary spending activity.

由於在通常是靴子銷售旺季的情況下天氣異常溫暖，以及持續的宏觀挑戰導致整體消費者可自由支配支出活動減少，我們的加拿大零售部門同店銷售額在第三季度下降了 4.6%。

Total sales were up double digits as a result of the addition of Rubino locations to our store base.

由於我們的門市數量增加了 Rubino，總銷售額增加了兩位數。

Finally, in our brand portfolio segment sales were up 18.5% in the third quarter.

最後，我們品牌組合部門的銷售額在第三季成長了 18.5%。

As a reminder, starting this fiscal year, we have harmonized our approach to how we transact business between our brand portfolio segment and our retail segments.

提醒一下，從本財年開始，我們已經協調了品牌組合部門和零售部門之間的業務往來方式。

This change resulted in approximately $15 million of year-over-year additional sales for our brand segment in the quarter that gets eliminated in consolidation.

這一變化導致我們品牌部門本季的銷售額與去年同期相比增加了約 1500 萬美元，但在合併時被抵消了。

We saw notable strength in our DTC sites where we have been investing in particular topo.com delivered at a triple digit comp, the strength of Topo however, was offset by a reduction at vc.com leading to a total comp decline of 7.5% for our brands DTC sites.

我們在DTC 網站上看到了顯著的實力，我們特別投資了topo.com，其營收同比增長了三位數，然而Topo 的強勁表​​現卻被vc.com 的下滑所抵消，導致總營收下降了7.5%。

Consolidated gross margin of 31.8% in the third quarter decreased 80 basis points versus the prior year, primarily driven by lower IMU, as a result of our continued penetration shifts into National Brands, and specifically more athletic and athleisure footwear.

第三季的綜合毛利率為 31.8%，較上年下降 80 個基點，主要原因是由於我們繼續向國家品牌（特別是運動和運動休閒鞋類）滲透，導致 IMU 下降。

Our adjusted SG&A was 26.7% of sales, a 220 basis points improvement from the third quarter of last year.

我們的調整後銷售、一般及行政費用佔銷售額的 26.7%，比去年第三季提高了 220 個基點。

This was driven by expense cuts made in response to the challenge top-line including the reversal of management incentive compensation accrual in the quarter, which was slightly offset by expense deleverage as a result of top-line decline in sales.

這是由於為應對營收挑戰而削減費用所致，包括本季度管理層激勵薪酬應計的逆轉，但由於銷售額下降導致費用去槓桿，這一削減略微抵消了這一影響。

As noted last quarter, we are undertaking an expense efficiency initiative with outside consultants.

正如上個季度所指出的，我們正在與外部顧問合作進行一項費用效率計劃。

Our partners have identified a number of opportunities to spend more effectively.

我們的合作夥伴已經發現了許多更有效的支出機會。

And we now have a detailed expense savings road map that we will begin executing in 2025, and we look forward to sharing more with you in the coming quarters.

現在，我們有了詳細的費用節約路線圖，將於 2025 年開始執行，我們期待在接下來的幾個季度與您分享更多資訊。

For the third quarter, adjusted operating income was $43.6 million, an improvement over $31.4 million last year, and the first quarterly year-over-year improvement in the last two years.

第三季度，調整後營業收入為 4,360 萬美元，較去年同期的 3,140 萬美元有所改善，也是近兩年來首次季度年增。

In the third quarter of 2024, we had $11.6 million of net interest expense compared to $8.8 million last year.

2024 年第三季度，我們的淨利息支出為 1,160 萬美元，而去年為 880 萬美元。

Higher interest expense is a direct result of the term loan we installed last year as well as higher interest rates on our ABL.

更高的利息支出直接源自於我們去年發放的定期貸款以及資產抵押債券的利率上升。

We drew on our ABL in the third quarter, as our team and the Board deemed it prudent to continue our share repurchase activity as evidence of our conviction and our long term strategy.

我們在第三季度利用了 ABL，因為我們的團隊和董事會認為繼續進行股票回購活動是明智之舉，這證明了我們的信念和長期策略。

To that end, we repurchase $50.6 million worth of DBI shares at an average price of $6.59. In Q3, our biggest share we purchase of the year.

為此，我們以平均 6.59 美元的價格回購了價值 5,060 萬美元的 DBI 股票。第三季度，我們購買了今年以來最大的份額。

Our effective tax rate in the third quarter on an adjusted results were 54.8% compared to 34.6% last year.

我們第三季調整後的有效稅率為 54.8%，去年同期為 34.6%。

Our third quarter adjusted net income was $14.5 million versus $14.8 million last year or $0.27 in diluted earnings per share versus $0.24 last year.

我們第三季的調整後淨收入為 1,450 萬美元，而去年同期為 1,480 萬美元，每股攤薄收益為 0.27 美元，而去年同期為 0.24 美元。

Turning to our inventory, we ended the third quarter with inventories up 6% versus the prior year, mostly driven by the significant lack of demand for seasonal footwear.

談到我們的庫存，第三季末的庫存比上年增長了 6%，主要原因是季節性鞋類需求嚴重不足。

As a result, Doug noted that we have pulled back further on fourth quarter, receipts for seasonal product to ensure we are moving into a healthy inventory position by the end of the year.

因此，道格指出，我們進一步減少了第四季度季節性產品的收貨量，以確保我們在年底前進入健康的庫存狀態。

We ended the third quarter with $36.2 million of cash, and our total liquidity which includes cash and availability under our ABL revolver was $154.5 million.

截止第三季度，我們的現金餘額為 3,620 萬美元，包括現金和 ABL 循環信貸下的可用資金在內的總流動資金為 1.545 億美元。

Total debt outstanding was $536.3 million, as of the end of the third quarter.

截至第三季末，未償還債務總額為 5.363 億美元。

Before I conclude, I want to take a minute to discuss our fiscal 2024 guidance.

在結束之前，我想花一點時間討論我們的 2024 財年指引。

Through the first half of the year, we had been signalling our confidence and an inflection point in the third quarter.

今年上半年，我們一直在表達我們的信心，並預示第三季將出現一個轉折點。

A sentiment bolstered by the positive comps we saw in August as a result of our successful back to school efforts.

由於我們成功地進行了返校工作，8 月我們看到了積極的業績表現，這進一步增強了我們的情緒。

However, the unseasonably warm weather in the September and October period coupled with sustained consumer pressure, significantly dampened performance in the last two months of the quarter.

然而，9月和10月異常溫暖的天氣加上持續的消費者壓力，嚴重抑制了本季最後兩個月的業績。

As we look ahead, we feel it is prudent to give you an update on our expectations for the full 2024 results.

展望未來，我們認為有必要向您更新我們對 2024 年全年業績的預期。

As a reminder, our guidance includes the headwind of the sales recorded in the 53rd week of fiscal 2023 as well as the lapping of Nike's return to our assortment in the fourth quarter of 2023.

提醒一下，我們的預期包括 2023 財年第 53 週銷售業績不佳以及耐吉在 2023 年第四季重返我們的產品線所帶來的影響。

Importantly, we do still continue to project our fourth quarter as our strongest comp growth quarter.

重要的是，我們仍然預測第四季將成為我們成長最強勁的季度。

Should macro conditions remain consistent to what we are seeing now, we would anticipate net sales growth for the year to be down low single digits, which incorporates the impact of the loss of the 53rd week compared to prior guidance of flat to up slightly.

如果宏觀條件與我們現在看到的保持一致，我們預計今年的淨銷售額成長將下降個位數，其中包括第 53 週損失的影響，而先前預期的是持平或小幅上漲。

We would expect external wholesale sales in our brand portfolio to be down low single digits versus prior guidance of flattish.

我們預計，我們品牌組合中的外部批發銷售額將下降個位數，而先前預期的持平。

Additionally, despite depressed sales levels, we have been generating larger profits and the midpoint of our guidance, excluding the impact of the 53rd week would contemplate the second consecutive quarter of year-over-year adjusted operating income growth leading to an annual diluted earnings per share outlook in the range of $0.10 to $0.30 versus our prior guidance of $0.50 to $0.60.

此外，儘管銷售水準低迷，但我們的利潤卻有所增加，我們的預期中位數（不包括第53 週的影響）將預期連續第二季實現調整後營業收入同比增長，從而實現年度攤薄每股收益股價前景在 0.10 美元到 0.30 美元之間，而我們先前的預期是 0.50 美元到 0.60 美元。

Our weighted average diluted shares outstanding are anticipated to be approximately $53.5 million for the third quarter and approximately $55.4 million for the full year.

我們預計第三季的加權平均稀釋流通股數約為 5,350 萬美元，全年加權平均稀釋流通股數約為 5,540 萬美元。

Given the share repurchase activity that has occurred thus far throughout the year.

鑑於今年迄今已經發生的股票回購活動。

At this time, we would like to reaffirm our expectations for Capital expenditures to be in the range of $60 million to $65 million for the year.

這次，我們想重申我們的預期，今年的資本支出將在 6,000 萬美元至 6,500 萬美元之間。

Our estimates also assume an effective tax rate of roughly 32%.

我們的估算也假設有效稅率約為32%。

I remain confident that our outlined initiatives will continue to deliver improved performance over time.

我堅信，隨著時間的推移，我們所提出的措施將持續取得更好的成效。

Remaining focused on our core business strategy throughout the holidays will position us for stronger performance over the long-term as these external challenges ease.

在整個假期期間繼續專注於我們的核心業務策略，將使我們在這些外部挑戰緩解的同時，在長期內獲得更強勁的業績。

With that, we will open the call for questions.

現在，我們將開始提問。

Operator?

操作員？

(Operator Instructions) Dylan Carden, William Blair.

（操作員指示） Dylan Carden，William Blair。

Jared, -- if you mentioned this.

賈里德，——如果你提到了這一點。

November trends or just trends generally, once the weather kind of co-operated, did you provide that?

十一月份的趨勢，或只是整體趨勢，一旦天氣配合，您會提供這些資訊嗎？

Yeah.

是的。

What we said is what we're, -- what the midpoint of our guidance implies and to be perfectly honest, I would say it, it's indicated or informed by the November trends we're seeing.

我們所說的就是我們的指導中點所暗示的，坦白說，我想說，它是根據我們看到的 11 月份趨勢所表明或告知的。

And on the -- on kind of through the holiday, what we saw was overall demand slightly below last year, but it was distorted.

在整個假期期間，我們看到整體需求略低於去年，但這種需求被扭曲了。

Stores were actually positive, digital because we were not chasing excess boot inventory like we were last year.

商店實際上是積極的，數字化的，因為我們沒有像去年那樣追逐多餘的靴子庫存。

So very different targeted promotions were below last year.

因此，去年的針對性促銷活動有很大不同。

But gross margin dollars and rate obviously were well above last year.

但毛利率和毛利率顯然遠高於去年。

And we're seeing that trend continue.

我們看到這一趨勢仍在繼續。

So our midpoint of the guidance kind of incorporates all of that.

所以我們的指導中點就涵蓋了所有這些內容。

Great.

偉大的。

And then kind of related to that.

然後有點與此相關。

Are you losing share in boots?

你們的靴子市佔率正在下降嗎？

I mean, the industry was also down, double digits, you were down, I think you said 27%.

我的意思是，整個產業也下滑了，兩位數，你下滑了，我想你說的是 27%。

And you care and I guess sort of the implied question and that is, it sorts of a waterbed.

而且您關心的，我想這有點隱含的問題，那就是，它是一種水床。

Affected to this point where your kind of seeing gains elsewhere, but losses in other places and kind of keeping you in that disadvantaged position until you get the assortment in a better sort of mix.

受到影響的是，您會在其他地方看到收益，但在其他地方看到損失，並且會一直處於不利地位，直到您獲得更好的組合。

Yeah, this is Doug.

是的，這是道格。

Dylan, thanks for your question.

迪倫，謝謝你的提問。

We consciously plan the category down, as we mentioned, 15%, it was almost double that decrease.

我們有意識地將類別削減，正如我們所提到的，15%，幾乎是這個降幅的兩倍。

I mean, we're going to be very strategic about continuing to kind of de weatherize the business obviously.

我的意思是，我們顯然會非常有策略地繼續去氣候化業務。

So we're still working through the level of what that would look like.

所以我們仍在努力研究它看起來會是什麼樣子。

Fourth quarter is actually even a higher percent of our business in the boot category, obviously than Q3.

第四季度，靴子類業務在我們業務中所佔的比例實際上明顯高於第三季。

And we have seen a bit of a rebound with the weather as we move through the quarter.

隨著本季的到來，我們看到天氣有所反彈。

And then as you said, we've been particularly pleased with how we've seen that show up in our stores.

正如您所說，我們對它在我們的商店中的出現感到特別高興。

I think the assortment work that the teams are doing.

我認為這是團隊正在進行的分類工作。

I would give credit to that as well as the marketing and messaging.

我對此以及行銷和訊息傳遞都給予高度評價。

We really showed up for holiday with messaging in our store.

我們確實在商店裡傳遞著節日訊息。

So that's been favorable as well, but again, we're going to continue to be conservative on the seasonal categories as we've stated.

所以這也是有利的，但是，正如我們已經說過的，我們將繼續對季節性類別保持保守。

And then to that point, you're not, you're not leaving money on the table here by sort of over correcting for boots as the weather has turned, I guess would be one thought.

然後到那時，你就不會，你不會因為天氣轉變而對靴子進行過度修正而損失錢財，我想這是一個想法。

No, we don't believe so at all.

不，我們根本不這麼認為。

I mean, we still saw a slight decrease in traffic, right?

我的意思是，我們仍然看到流量略有下降，對嗎？

So that's why we're excited about, the marketing that we'll be leaning into in a more aggressive way for next year with regards to just driving that traffic, but not leaving business on the table at all.

因此，我們對此感到興奮，明年我們將以更積極的方式進行行銷，以吸引流量，但不會放棄任何業務。

Awesome.

驚人的。

Thank you.

謝謝。

(Operator Instructions) Mauricio Serna, UBS.

(操作員指示) 瑞銀 (UBS) 的 Mauricio Serna。

Great.

偉大的。

Good morning.

早安.

Thanks for taking my question.

感謝您回答我的問題。

Just wanted to hear because -- if I missed this.

只是想聽聽因為——如果我錯過了這個。

Did you talk about what was your performance in across your, top eight national brands?

您有沒有談過您在八大全國品牌的表現如何？

What are you seeing there?

你在那看到了什麼？

And also if you mentioned what was your quarter to date trend?

另外，如果您提到了本季迄今為止的趨勢是什麼？

And also, and on the other hand, on the balance sheet, saw -- in cash flow, you saw, like you mentioned, you did your biggest share repurchase of the year.

另一方面，在資產負債表上，從現金流來看，正如您所提到的，您進行了今年最大的股票回購。

How are you thinking about depth level management considering that, I guess like the business has been a little bit more challenged than expected?

考慮到這一點，您如何看待深度管理？ 我想業務面臨的挑戰比預想的要大一些？

Hi Mauri.

你好，Mauri。

So this is Doug, thanks for your question.

我是 Doug，感謝您的提問。

I'll take the first two on the brand performance and then quarter to date and then I'll turn it over to Jared for the debt.

我將首先討論品牌表現，然後討論本季迄今為止的表現，然後我將把債務交給賈里德。

Yeah, we did share the performance of the top eight brands, they were up 27% in Q3 is roughly about 40% of the total.

是的，我們確實分享了前八大品牌的業績，它們在第三季成長了 27%，約佔總銷售額的 40%。

Really proud of the work the team's done on really going out to the relationships with those top brands.

我真的很為團隊在與這些頂級品牌建立良好關係方面所做的工作感到自豪。

Being mindful, also that, we're not becoming overly relying on any of them, think about, 40% penetration on eight brands.

也要注意的是，我們不會過度依賴其中任何一個，想想看，八個品牌的滲透率達 40%。

None of them are close to the 10% of the business.

他們中沒有一個人接近該業務的 10%。

So we think that's a very thoughtful approach.

所以我們認為這是一個非常周到的方法。

Quarter to date, as Jared said a couple of moments ago, is in-line with the guidance that we're providing.

正如賈里德剛才所說，本季迄今的表現符合我們提供的指導。

Again, we saw a little bit of softness in Black Friday and Cyber Monday, but we're seeing an expansion in margin dollars and that's continuing as we move through December as well, largely due to the fact that we're not as promotional as we were last year because we're in a much better position inventory.

再次，我們看到黑色星期五和網路星期一的銷售略有疲軟，但我們看到利潤率擴大，而且這種情況在 12 月也將繼續，這主要是因為我們的促銷力度不如因為我們的庫存狀況比去年好得多。

And on kind of day level management.

並進行日常管理。

What we always look at is more of a liquidity management.

我們始終關注的是流動性管理。

We've got two big working capital cycles a year.

我們每年有兩個大的營運資金週期。

We're actually on the cash generation side of one of those cycles happening right now, very, very typical and cyclical.

我們實際上正處於當前正在發生的一個週期的現金產生方面，這是非常非常典型和週期性的。

We are comfortable with our overall debt levels and more importantly, comfortable with our liquidity levels.

我們對我們的整體債務水準感到滿意，更重要的是，我們對我們的流動性水準感到滿意。

I would say obviously, we want to remain cautious as we just look at the consumer environment out in the future.

我想說，顯然，我們希望保持謹慎，因為我們只關注未來的消費環境。

So we feel like we've got our capital structure in the right place right now, but always have an eye on that and certainly also an eye on to the interest load that it brings.

因此，我們覺得我們的資本結構現在處於正確的位置，但要時時注意這一點，當然也要注意它所帶來的利息負擔。

Got it very helpful.

非常有幫助。

And then just could you provide any details on what you've seen with Nike.

然後您能否提供有關耐吉的詳細資訊？

I remember like you were very excited about, new more just having more products available from that brand this year than even when you had the brand, a few years before.

我記得你非常興奮，因為今年品牌提供的產品比幾年前還要多。

Yeah, this is Doug, I mean, we continue to be very pleased with an IT performance.

是的，這是 Doug，我的意思是，我們仍然對 IT 表現感到非常滿意。

They couldn't be better partners, really encouraged, I mean, still a net new positive for us, we have now lapped when they came back to the saw specifically, but again, couldn't be more pleased with the business and the relationship.

他們是我們最好的合作夥伴，我們非常受鼓舞，我的意思是，這對我們來說仍然是一個新的積極因素，當他們回來時，我們已經超過了預期，但同樣，我們對業務和關係感到非常滿足。

They've been great partners.

他們一直是很好的合作夥伴。

Got it.

知道了。

Thank you very much.

非常感謝。

Thank you

謝謝

And ladies and gentlemen, at this time, in showing no additional questions, I'd like to turn the floor back over to Doug Howe for closing remarks.

女士們、先生們，現在沒有其他問題了，我想將發言權交還給道格·豪 (Doug Howe) 做結束語。

I'd like to thank everyone for joining us today and we look forward to updating you as we continue to make progress on our strategic priorities going forward.

我想感謝大家今天的出席，我們期待在未來的策略重點上繼續取得進展，並向大家通報最新情況。

Thanks again for joining us.

再次感謝您的加入。

Ladies and gentlemen, that does conclude today's conference call and presentation.

女士們、先生們，今天的電話會議和演講到此結束。

We do thank you for joining.

我們非常感謝您的加入。

You may now disconnect your lines.

現在您可以斷開線路了。