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

早安，歡迎參加 Designer Brands 2024 年第三季業績電話會議。 （操作員說明）也請注意，今天的活動正在錄製中。

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

現在，我想請財務高級副總裁達斯汀·豪恩斯坦 (Dustin Hauenstein) 發言。請繼續。

Good morning. 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.

早安.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週期間和截至2023年10月28日的13週期間的營運結果。

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

請注意，除非另有說明，否則我們將在今天電話會議的剩餘時間內參考的財務業績不包括根據公認會計準則記錄的某些調整。有關 GAAP 與調整後收益的完整調整表，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. Results may differ materially due to the various factors listed in today's press release and the company's public filings with the SEC. The company assumes no obligation to update any 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。由於今天的新聞稿中列出的各種因素以及該公司向美國證券交易委員會提交的公開文件，結果可能會存在重大差異。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. Now, let me turn the call over to Doug.

今天加入我們的是執行長 Doug Howe；和財務長 Jared Poff。現在，讓我把電話轉給道格。

Thank you everyone for joining us this morning. 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.

感謝大家今天早上加入我們。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，這得益於我們的運動和運動休閒產品，並在 8 月帶來了積極的業績。

This gave us confidence that we had reached the inflection point in our business that we have been working towards. However, we saw a tough transition into the fall seasonal business as a result of unseasonably warm weather. This was exacerbated by an ongoing pullback in consumer discretionary spending due to sustained uncertainty in the macro environment.

這讓我們相信我們已經達到了我們一直在努力實現的業務轉折點。然而，由於反常的溫暖天氣，我們看到了向秋季季節性業務的艱難過渡。由於宏觀環境的持續不確定性，消費者可自由支配支出持續回落，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%. However, according to Circana for Q3 footwear sales excluding boots remain flat to prior year in the footwear market. While DSW footwear sales excluding boots grew 8% versus prior year, outpacing the footwear market results.

雖然我們看到大多數類別的需求低於預期，但我們的靴子業務雖然已經計劃削減，但大約下降了 15%，下降了 27%。然而，根據 Circana 的數據，第三季鞋類市場（不包括靴子）的鞋類銷售額與去年同期持平。 DSW 鞋類銷售額（不包括靴子）較上年增長 8%，超過鞋類市場業績。

This was largely due to our athletic category continuing to comp positive throughout the quarter. Additionally, in US retail, we saw growth across key categories in the quarter, like women's dress, luxury athletic and kids. And our top eight brands, seven of which were at leisure continue to lead the way.

這主要是由於我們的運動類別在整個季度繼續保持積極的業績。此外，在美國零售業，我們看到本季關鍵類別的成長，如女裝、奢侈品運動和童裝。我們的前八個品牌（其中七個是休閒品牌）繼續保持領先地位。

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

在今年剩下的時間裡，我們意識到壓力可能會持續下去。因此，我們將繼續專注於我們控制範圍內的這些舉措，並專注於我們獲勝和客戶購物的領域。

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

我稍後會介紹該策略。但我想向我們的員工致以誠摯的謝意，感謝他們在實施我們更新的策略時的勤奮和承諾。

Let me first touch on our consolidated results. 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. This was primarily driven by a negative 2.8% comp in our US retail segment driven by the dynamics I discussed earlier.

讓我先談談我們的綜合業績。第三季度，我們的銷售額比去年同期下降了 1.2%，綜合成本下降了 3.1%。這主要是由我之前討論的動態推動的美國零售部門的 2.8% 的負成長率所致。

Despite these external pressures, we continue to see our strategic priorities yielding strong results. 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. This helped to offset negative boot performance at DSW.

儘管面臨這些外部壓力，我們仍然看到我們的策略重點取得了強勁成果。據 Circana 稱，第三季 DSW 鞋類銷售額與去年鞋類市場持平，在性能鞋類、休閒鞋類以及[正裝]場合鞋類方面超過了市場。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. 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.

重要的是，我們調整後的營業收入比去年增加了約 40%，達到 4,360 萬美元。由於持續的費用優化和前幾季確認的激勵薪酬的逆轉，我們的獲利能力也連續改善，因為業績低於預期。

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. 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.

談到我們的零售業務，美國零售額與去年相比下降了 2.6%，本季公司銷售額下降了 2.8%，原因是運動和運動休閒持續成長，但被季節性疲軟所抵消。據 Circana 稱，我們並不是唯一感受到這種疲軟的人，DSW 和鞋類市場第三季的銷量和靴子銷量均下降了兩位數。

As we continue to evolve our assortment, seasonal still remains an area where we are significantly penetrated, therefore, overly affecting our consolidated results. We noted to you last quarter that we had taken unprecedented material actions to reduce our seasonal assortment into the fall.

隨著我們不斷發展我們的品種，季節性仍然是我們顯著滲透的領域，因此過度影響我們的綜合業績。我們在上個季度向您指出，我們採取了前所未有的實質行動，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.

我們看到，由於持續疲軟，我們在第四季度主動進一步削減了季節性收入，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. It is clear, more decisive actions are needed to decrease seasonal penetration an ongoing basis. And as such, we are planning accordingly for 2025. We are committed to more aggressively leveraging consumer insights to lean into our greatest areas of differentiation.

我們第四季末的目標是庫存與去年持平至低個位數。顯然，需要採取更果斷的行動來持續降低季節性滲透率。因此，我們正在為 2025 年做出相應的規劃。

This includes prioritizing investments and focusing on areas where we know we differentiate ourselves including our stores. As we continue to focus on executing on those things within our control. I'm going to briefly walk through our efforts against DSWs three strategic pillars in the third quarter.

這包括優先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。當我們繼續專注於執行我們控制範圍內的事情時。我將簡要介紹我們在第三季度針對 DSW 三個戰略支柱所做的努力。

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

重振我們的品類，提升我們的行銷水平並增強我們的全通路購物體驗。從我們的品種開始，我們的前八個品牌仍然是積極業績的主要推動力，與去年第三季度相比，銷售額增長了 27%。

As anticipated, we saw continued strength in athletic with both adults and kids growing double digits. Our athletic penetration increased by nearly 5 points versus the prior year, and we see remaining white space in this category.

正如預期的那樣，我們看到成人和兒童的體育運動持續強勁，增長了兩位數。與前一年相比，我們的運動滲透率增加了近 5 個百分點，我們看到該類別中仍存在空白。

Athletic socks also continue to perform well up triple digits. Excitingly, we also saw a positive mid-single digit comp in women's dress. 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.

運動襪的表現也持續保持三位數的成長。令人興奮的是，我們也看到女裝的銷售額達到了中個位數。隨著節日季節的到來，我們也對極具禮品價值的品牌進行了投資，其中一些品牌將在我們店面舒適的商店中出售。

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.

正如我稍後將詳細介紹的那樣，我們正以前所未有的方式迎接DSW 假期，與主要的國內品牌合作夥伴合作，大聲喧嘩、令人興奮，最重要的是，我們庫存了每年這個時候最令人嚮往的品牌。

Moving to marketing, our ability to amplify our evolved assortment is more critical than ever. And our new Chief Marketing Officer has hit the ground running. 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.

轉向行銷，我們擴大產品種類的能力比以往任何時候都更重要。我們的新任首席行銷長已經開始行動。我們在第三季度取得了許多成功，包括以返校季為開端，部署名人和有影響力的人士分享他們的本季精選商品，以及精心策劃的在線返校購物指南以滿足學生的需求，各年齡層的家長和老師。

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

這項方法帶來了 261 億美元的媒體印象，而去年同期為 150 億美元。以名為「秋季趨勢」的全通路活動拉開秋季序幕，引導顧客選擇最時尚的款式，從過膝靴到紅色，再到兇猛的動物印花和重金屬細節。

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贏得了 670 億美元的媒體印象，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. 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%.

改善和增強我們的社交媒體管道和參與。 9 月是表現最好的一個月，我們看到整體通路參與度為 500%，月度參與度為 4%，新追蹤者率接近 7%。

Paired with our enhanced influencer and content strategy. This resulted in an average of 15 million views across our social content monthly. 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.

與我們增強的影響者和內容策略結合。這使得我們的社群內容每月平均有 1500 萬次瀏覽。幫助我們的 DSW 品牌在策略目標受眾（特別是男鞋和兒童鞋消費者）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. 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.

雖然我們相信我們還處於旅程的早期階段，並且還有更大的改進空間，但這些早期跡象令人鼓舞。最後，聘請世界一流的品牌代理商 Crispin 作為我們新的品牌策略合作夥伴，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. We know that roughly 70% of our customers start their search online and still go to the stores.

為此，我們圍繞第三個支柱來增強 DBI 客戶的全通路購物體驗仍然是我們的核心策略重點。我們知道，大約 70% 的客戶開始在線搜索，但仍然會去商店。

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

我們的商店仍然是我們淨新客戶獲取的最大來源。為了在本季充分利用我們的全通路平台，DSW 傾向於成為返校目的地，無論是在網路上還是在商店中，我們都建立了一個巨大而有影響力的視覺形象，並提供了令人印象深刻且引人注目的宣傳品。

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. 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.

因此，有了這些新的經驗教訓，讓我們來談談我們在美國正在採取哪些措施來減輕第四季度的不利因素。我們的團隊發現，我們有一個很好的機會在這個假期執行送禮策略，這很大程度上超出了我們的配件領域，包括襪子、緊身帽子和寒冷天氣服裝。

It will include a completely reimagined line and several updates to our gifting and impulse product offerings that can only be found in stores. This will be accompanied by creative collateral to support a gift guide, key trends, prioritize brands and other relevant holiday messaging.

它將包括一個完全重新設計的產品線，以及我們只能在商店中找到的禮品和衝動產品的一些更新。這將伴隨著創意宣傳材料，以支持禮品指南、主要趨勢、優先品牌和其他相關節日訊息。

We have an action pack consumer engagement plan that will showcase great value, top trends and the season's best giftable. And we are amplifying this with a 360-degree holiday campaign that evolves with the customers’ needs throughout the extended period.

我們有一個行動包消費者參與計劃，將展示巨大的價值、熱門趨勢和當季的最佳禮品。我們正在透過 360 度假期活動來擴大這一點，該活動會隨著客戶在整個較長時期內的需求而變化。

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.

雖然銷售額與預測相對一致，但由於我們的促銷活動與去年相比有所減少，因此我們的利潤率有所上升。

Turning to our Canadian business. 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%.

轉向我們的加拿大業務。在加拿大，靴子對我們秋季業務的影響更大，尤其是技術性和寒冷天氣靴子，極不合時宜的溫暖天氣導致第三季度靴子銷量下降兩位數，涼鞋銷量增長近40%，打破了通常的趨勢。

Given the typical boot buying trends in the Canadian market are so unique and historically have not been impacted by weather. We did not plan inventory down in this geography for the quarter as we did in the US. Therefore, we felt an outsized impact.

鑑於加拿大市場典型的靴子購買趨勢非常獨特，且歷史上並未受到天氣的影響。我們沒有像在美國那樣計劃在本季減少該地區的庫存。因此，我們感受到了巨大的影響。

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

與美國類似，運動和休閒繼續呈現正面表現。儘管打破了通常的季節性因素，但在兒童消費強勁的推動下，第三季加拿大市場份額連續九個月增長。本季度，我們在加拿大開設了兩家新的鞋業公司商店，使我們在 28 家 Rubino 商店的基礎上，今年迄今淨增 8 家新商店。

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

現在，我們的品牌組合細分市場，正如之前的財報電話會議所提到的那樣，我們努力降低成本，擴大利潤，精簡和簡化我們的工作方式仍然是2024 年的首要任務。評估我們的採樣和設計流程，以提高偏差生產力並推動利潤率提高。

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，我們的設計方案採用率約為 20%，我們對 25 春季系列的採用率達到 50% 的顯著改進感到振奮，我們計劃在長期內保持更高的數字。

Successes in these areas led to a meaningful improvement in earnings contribution from the segment. As we look forward, we are positioned for continued growth as we build upon this foundation. 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.

這些領域的成功導致該部門的獲利貢獻顯著改善。展望未來，我們將在此基礎上持續發展。我們繼續對 Topo Athletic 和 Jessica Simpson 品牌的成長感到興奮，特別是，隨著我們擴大分銷範圍並提高產品知名度，隨著我們在行銷投資。

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

此外，圍繞跑步類別有很多討論，而 Topo 處於前沿和中心位置，推動了興奮度並為客戶提供了更多舒適度。傑西卡辛普森 (Jessica Simpson) 表現出色，我們看到了特殊場合服裝的強勁表現，銷售額增長了 14%。

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

最後，我對我們的業務繼續成功執行策略重點的方式感到滿意。我們仍然專注於繼續在我們的零售和品牌業務中創造正確的紀律和績效，並對我們實現盈利增長的長期道路感到興奮。

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，隨著這些不利因素的減弱，我們正在採取的措施將使我們在長期內提高業績。

With that. I'll turn it over to Jared. Jared?

有了這個。我會把它交給賈里德。賈里德？

Thank you, Doug and good morning, everyone. 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.

謝謝你，道格，大家早安。我們仍然對我們的投資領域的結果感到滿意，我們相信，即使挑戰仍然存在，這也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. For the third quarter of fiscal 2024, net sales of $777 million were down 1.2% versus the prior year period as reported. And we're down 3.1% on a 13-week comparable basis.

讓我更詳細地介紹我們第三季的財務業績，然後更新我們的年度指引。 2024 財年第三季度，淨銷售額為 7.77 億美元，較上年同期下降 1.2%。與 13 週可比相比，我們下跌了 3.1%。

In our US retail segment, comps were down 2.8% in the third quarter. As mentioned, our performance was bolstered by our back-to-school season which saw double digit comps in athletic and kids. Unfortunately, this strong performance was more than offset by negative comps in seasonal categories.

在我們的美國零售部門，第三季的比較下降了 2.8%。如前所述，我們的表現得到了返校賽季的提振，在運動和兒童方面的表現達到了兩位數。不幸的是，這種強勁的表現被季節性類別的負面競爭所抵消。

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

由於通常是靴子銷售季節的異常溫暖天氣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第三季度業績下降了 4.6%。由於我們的商店基地增加了 Rubino 門市，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. 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. 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.

最後，我們的品牌組合細分市場第三季銷售額成長了 18.5%。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處理方式。這一變化導致本季度我們品牌細分市場的同比銷售額增加了約 1500 萬美元，但在合併中被消除了。

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優勢，我們一直在投資topo.com，以三位數的價格交付，然而，Topo 的實力被vc.com 的減少所抵消，導致VC.com 的總價格下降了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%，與去年同期相比下降了80 個基點，這主要是由於IMU 下降，這是由於我們持續滲透到國家品牌，特別是更多的運動鞋和運動休閒鞋中。

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

調整後的 SG&A 佔銷售額的 26.7%，比去年第三季提高了 220 個基點。這是由於為應對營收挑戰而削減開支，包括扭轉本季應計管理層激勵薪酬，但營收下降導致的費用去槓桿化略有抵消。

As noted last quarter, we are undertaking an expense efficiency initiative with outside consultants. Our partners have identified a number of opportunities to spend more effectively. 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.

正如上季所指出的，我們正在與外部顧問一起實施費用效率計劃。我們的合作夥伴已經發現了許多更有效的支出機會。我們現在已經制定了詳細的費用節省路線圖，將於 2025 年開始執行，我們期待在未來幾季與您分享更多資訊。

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.

第三季調整後營業收入為 4,360 萬美元，比去年的 3,140 萬美元有所改善，也是過去兩年來首次出現季度年比改善。

In the third quarter of 2024, we had $11.6 million of net interest expense compared to $8.8 million last year. Higher interest expense is a direct result of the term loan we installed last year as well as higher interest rates on our ABL.

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。較高的利息支出是我們去年安裝的定期貸款以及較高的 ABL 利率的直接結果。

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. 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.

我們在第三季利用了 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謹慎的做法，以此作為我們信念和長期策略的證據。為此，我們以平均價格 6.59 美元回購了價值 5,060 萬美元的 DBI 股票。在第三季度，我們購買了今年最大的份額。

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

我們第三季調整後業績的有效稅率為 54.8%，去年為 34.6%。我們第三季調整後淨利為 1,450 萬美元，去年為 1,480 萬美元，攤薄每股收益為 0.27 美元，去年為 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. 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.

談到我們的庫存，我們第三季末的庫存比前一年增加了 6%，這主要是由於季節性鞋類需求嚴重缺乏所致。因此，道格指出，我們在第四季度進一步減少了季節性產品的收入，以確保我們在年底前進入健康的庫存狀況。

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

第三季結束時，我們的現金為 3,620 萬美元，包括 ABL 左輪手槍下的現金和可用資金在內的總流動資金為 1.545 億美元。截至第三季末，未償債務總額為 5.363 億美元。

Before I conclude, I want to take a minute to discuss our fiscal 2024 guidance. Through the first half of the year, we had been signalling our confidence and an inflection point in the third quarter. A sentiment bolstered by the positive comps we saw in August as a result of our successful back to school efforts. 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.

在結束之前，我想花一點時間討論我們的 2024 財年指導。今年上半年，我們一直在釋放信心，並在第三季迎來拐點。由於我們成功重返校園，我們在八月看到了積極的業績，這提振了我們的情緒。然而，九月和十月的異常溫暖天氣加上持續的消費者壓力，嚴重削弱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. 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. Importantly, we do still continue to project our fourth quarter as our strongest comp growth quarter.

展望未來，我們認為向您提供有關 2024 年完整業績預期的最新資訊是謹慎的做法。提醒一下，我們的指導包括 2023 財年第 53 週記錄的銷售逆風，以及耐吉在 2023 年第四季回歸我們的產品系列。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成長將下降到低個位數，其中考慮了第 53 週虧損的影響，而先前的指導是持平到小幅成長。

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

我們預計我們品牌組合的外部批發銷售額將比之前持平的指導值降低個位數。此外，儘管銷售水平低迷，但我們一直在創造更大的利潤，並且排除第 53 週的影響，我們的指導中位數將考慮連續第二個季度的同比調整後營業收入增長，導致年度攤薄收益股價展望為0.10 美元至0.30 美元，而我們先前的指導為0.50 美元至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. Given the share repurchase activity that has occurred thus far throughout the year. 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. Our estimates also assume an effective tax rate of roughly 32%.

我們的加權平均稀釋後流通股預計第三季約為 5,350 萬美元，全年約為 5,540 萬美元。鑑於全年迄今發生的股票回購活動。目前，我們想重申我們對今年資本支出在 6,000 萬至 6,500 萬美元範圍內的預期。我們的估計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. 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.

我仍然相信，隨著時間的推移，我們概述的舉措將繼續提高績效。隨著這些外部挑戰的緩解，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能夠在長期內取得更強勁的業績。

With that, we will open the call for questions. Operator?

至此，我們將開始提問。操作員？

(Operator Instructions) Dylan Carden, William Blair.

（操作員說明）迪倫卡登、威廉布萊爾。

Jared, -- if you mentioned this. November trends or just trends generally, once the weather kind of co-operated, did you provide that?

賈里德，——如果你提到這一點。 11 月趨勢或只是總體趨勢，一旦天氣配合，您提供了嗎？

Yeah. 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. And on the -- on kind of through the holiday, what we saw was overall demand slightly below last year, but it was distorted. Stores were actually positive, digital because we were not chasing excess boot inventory like we were last year.

是的。我們所說的就是我們的——我們指導的中點意味著什麼，說實話，我想說，它是由我們看到的 11 月趨勢所表明或告知的。在整個假期期間，我們看到整體需求略低於去年，但它是扭曲的。商店實際上是積極的、數位化的，因為我們沒有像去年那樣追逐過剩的靴子庫存。

So very different targeted promotions were below last year. But gross margin dollars and rate obviously were well above last year. And we're seeing that trend continue. So our midpoint of the guidance kind of incorporates all of that.

因此，有針對性的促銷活動與去年截然不同。但毛利率和毛利率顯然遠高於去年。我們看到這種趨勢仍在持續。因此，我們的指導中點包含了所有這些。

Great. And then kind of related to that. Are you losing share in boots? I mean, the industry was also down, double digits, you were down, I think you said 27%. And you care and I guess sort of the implied question and that is, it sorts of a waterbed. 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.

偉大的。然後與此相關。您正在失去靴子市場份額嗎？我的意思是，這個行業也下降了，兩位數，你下降了，我想你說的是 27%。你關心，我猜這是一個隱含的問題，那就是，它有點像水床。受到這種影響，你會在其他地方看到收益，但在其他地方會遭受損失，這會讓你處於不利地位，直到你獲得更好的組合。

Yeah, this is Doug. Dylan, thanks for your question. We consciously plan the category down, as we mentioned, 15%, it was almost double that decrease. I mean, we're going to be very strategic about continuing to kind of de weatherize the business obviously.

是的，這是道格。迪倫，謝謝你的問題。我們有意識地計劃將該類別下調，正如我們所提到的，15%，幾乎是降幅的兩倍。我的意思是，我們將採取非常策略性的策略，繼續使業務不再受天氣影響。

So we're still working through the level of what that would look like. Fourth quarter is actually even a higher percent of our business in the boot category, obviously than Q3. And we have seen a bit of a rebound with the weather as we move through the quarter.

所以我們仍在研究它的樣子。實際上，第四季我們靴子類別的業務比例甚至更高，明顯高於第三季。隨著本季的天氣變化，我們看到了一些反彈。

And then as you said, we've been particularly pleased with how we've seen that show up in our stores. I think the assortment work that the teams are doing. I would give credit to that as well as the marketing and messaging. We really showed up for holiday with messaging in our store. 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.

正如您所說，我們對商店中出現的情況感到特別滿意。我認為團隊正在做的分類工作。我會讚揚這一點以及行銷和訊息傳遞。我們真的是在假期裡在商店裡發訊息的。因此，這也是有利的，但正如我們所說，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.

然後到了這一點，你不會，你不會因為天氣變化而過度修正靴子而把錢留在桌子上，我想這是一種想法。

No, we don't believe so at all. I mean, we still saw a slight decrease in traffic, right? 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.

不，我們根本不相信。我的意思是，我們的流量仍然略有下降，對吧？因此，這就是為什麼我們感到興奮，明年我們將以更積極的方式進行行銷，以增加流量，但根本不會留下任何業務。

Awesome. Thank you.

驚人的。謝謝。

(Operator Instructions) Mauricio Serna, UBS.

（操作員指示）Mauricio Serna，UBS。

Great. Good morning. Thanks for taking my question. Just wanted to hear because -- if I missed this. Did you talk about what was your performance in across your, top eight national brands? What are you seeing there? And also if you mentioned what was your quarter to date trend?

偉大的。早安.感謝您提出我的問題。只是想聽聽，因為——如果我錯過了這個。您是否談過您在前八名民族品牌中的表現？你在那裡看到什麼？另外，如果您提到您的季度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. How are you thinking about depth level management considering that, I guess like the business has been a little bit more challenged than expected?

另一方面，在資產負債表上，你看到現金流量，就像你提到的，你進行了今年最大的股票回購。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期的要大一些？

Hi Mauri. So this is Doug, thanks for your question. 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. Yeah, we did share the performance of the top eight brands, they were up 27% in Q3 is roughly about 40% of the total.

嗨毛里。我是道格，謝謝你的提問。我將首先評估品牌表現，然後評估季度至今，然後交給賈里德償還債務。是的，我們確實分享了前八個品牌的表現，它們在第三季度增長了 27%，約佔總數的 40% 左右。

Really proud of the work the team's done on really going out to the relationships with those top brands. Being mindful, also that, we're not becoming overly relying on any of them, think about, 40% penetration on eight brands. None of them are close to the 10% of the business. So we think that's a very thoughtful approach.

我們對團隊在與這些頂級品牌建立關係方面所做的工作感到非常自豪。也要注意的是，我們不會過度依賴其中任何一個，想想八個品牌的 40% 滲透率。他們中沒有一個接近該業務的 10%。所以我們認為這是一個非常深思熟慮的方法。

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

正如賈里德剛才所說，本季迄今的情況符合我們提供的指導。同樣，我們在黑色星期五和網路星期一看到了一點疲軟，但我們看到保證金金額有所增加，隨著我們進入 12 月，這種情況仍在繼續，主要是因為我們的促銷活動沒有像我們去年是這樣，因為我們的庫存狀況要好得多。

And on kind of day level management. What we always look at is more of a liquidity management. We've got two big working capital cycles a year. We're actually on the cash generation side of one of those cycles happening right now, very, very typical and cyclical.

以及日常管理。我們始終關注的更多是流動性管理。我們每年有兩個大的營運資金週期。實際上，我們正​​處於目前正在發生的其中一個週期的現金產生方面，非常非常典型和週期性。

We are comfortable with our overall debt levels and more importantly, comfortable with our liquidity levels. I would say obviously, we want to remain cautious as we just look at the consumer environment out in the future. 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.

我們對整體債務水準感到滿意，更重要的是，對流動性水準感到滿意。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。因此，我們覺得我們的資本結構現在處於正確的位置，但始終關注這一點，當然也關注它所帶來的利息負擔。

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

得到它非常有幫助。然後您能否提供有關您所看到的耐克的任何詳細資訊。我記得你對此感到非常興奮，今年該品牌推出的產品數量比幾年前你擁有該品牌時還要多。

Yeah, this is Doug, I mean, we continue to be very pleased with an IT performance. 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. They've been great partners.

是的，我是 Doug，我的意思是，我們仍然對 IT 效能感到非常滿意。他們是最好的合作夥伴，真的很受鼓舞，我的意思是，這對我們來說仍然是一個全新的積極因素，當他們專門回到鋸子上時，我們已經拍了幾圈，但同樣，我們對業務和關係感到非常滿意。他們一直是很棒的合作夥伴。

Got it. Thank you very much.

知道了。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，此時此刻，我想請 Doug Howe 發表結束語，不再提出其他問題。

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. Thanks again for joining us.

我要感謝大家今天加入我們，我們期待向您通報最新情況，因為我們將繼續在我們的策略重點方面取得進展。再次感謝您加入我們。

Ladies and gentlemen, that does conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

女士們先生們，今天的電話會議和演講到此結束。我們非常感謝您的加入。現在您可以斷開線路。