Designer Brands Inc. (DBI) 2026 Q1 法說會逐字稿

(audio in progress) A more durable earnings model for the business going forward. We generated adjusted operating income of $19 million and adjusted EPS of $0.07, representing a significant improvement versus last year and ahead of our expectations.

(音訊進行中) 未來業務將採用更具韌性的獲利模式。我們實現調整後營業利益1,900萬美元與調整後每股盈餘(EPS)0.07美元，較去年顯著改善，且優於我們的預期。

I'm encouraged by the strong start to the year in a bit more detail. Starting with our retail segment, which as a reminder, reflects the aggregation of our US retail and Canada retail operating segments. Our total sales for the first quarter were approximately flat year-over-year with comparable sales down slightly.

我對今年強勁的開局感到振奮，以下提供更詳細說明。先從我們的零售部門談起，提醒一下，該部門反映我們美國零售與加拿大零售營運部門的合併。第一季總銷售額與去年同期大致持平，可比銷售略為下滑。

Sales in the quarter, which was more prevalent in Canada. In the US, revenue was up slightly, and according to Circana data, in Q1, DSW held in footwear market share versus last year. Traffic trends were price sales, supported by our enhanced assortment and effective inventory management.

本季的銷售情況在加拿大更為明顯。在美國，營收小幅成長；根據Circana數據，第一季DSW的鞋類市占率與去年持平。客流趨勢與價格型銷售表現良好，受惠於我們強化的商品組合與有效的庫存管理。

From a product perspective, we shared on our last call that in 2026, we are focused on winning with the merchandise that matters most to our consumers. And we saw encouraging response across several categories in the first quarter. Our dress business was strong in Q1, up approximately 4%. Affordable Luxury continues its significant growth trajectory with a category enhancing relevance and driving differentiation within the assortment.

從產品角度來看，我們在上次電話會議中分享，於2026年我們聚焦以最能打動消費者的關鍵商品取勝。第一季我們在多個品類看到令人鼓舞的回應。我們的正裝鞋業務在第一季表現強勁，約成長4%。平價奢華(Affordable Luxury)持續維持顯著的成長軌跡，該品類提升了相關性，並在商品組合中帶來差異化。

On our last earnings call, we also spoke about an opportunity to increase market share in categories adjacent to footwear, and we were pleased to drive double-digit sales growth in these categories during the first quarter, led by strong performance across the accessories assortment.

在上次財報電話會議中，我們也談到在鞋類相鄰品類提升市占的機會；我們很高興第一季這些品類實現雙位數銷售成長，其中以配件商品組合的強勁表現領先。

At the same time, weather-related headwinds impacted our seasonal sandals business, which was down low single digits in the quarter. We also saw softness in the casual and athletic categories as consumers shifted back toward fashion and occasion-based products following several years of elevated demand in casual and athletic.

同時，天候相關的不利因素影響了我們的季節性涼鞋業務，本季下滑低個位數。我們也看到休閒與運動品類走弱，因消費者在休閒與運動品類需求高漲數年後，開始轉回更偏時尚與場合導向的產品。

These trends are not unique to our business, and we are confident that our assortment breadth positions us well to capitalize on these cyclical shifts in consumer preferences. Performance of our top 10 brands was generally in line with our retail trend during the quarter, with growth across several strategic partners offset by the category headwinds I mentioned earlier.

這些趨勢並非我們獨有；我們有信心，我們商品組合的廣度使我們能把握消費者偏好這些週期性轉變。本季前十大品牌的表現大致與我們的零售趨勢一致，數個策略合作夥伴的成長抵銷了我先前提到的品類逆風。

These strategic brand partners continue to play an important role in driving customer engagement and reinforcing the strength and relevance of our assortment. Our marketing team amplified our assortment strength by building on our let us surprise you platform in Q1. We continue to curate our DSW brand positioning throughout the quarter, driving increased engagement and impressions across PR and social channels.

這些策略品牌合作夥伴持續在推動顧客互動、並強化我們商品組合的實力與相關性方面扮演重要角色。我們的行銷團隊在第一季延伸「讓我們給你驚喜」(let us surprise you)平台，放大我們商品組合的優勢。整個季度我們持續精煉DSW的品牌定位，推動公關與社群渠道的互動與曝光提升。

We also rolled out an evolved influencer strategy with elevated storytelling-driven campaigns intending to strengthen DSW's authority as a destination for seasonally relevant occasion-based dressing through trusted influencer recommendations. We intend to continue building on these marketing initiatives through Q2, driving brand relevance as we support key seasonal categories across the business.

我們也推出升級版的網紅策略，以更高質感、故事導向的行銷活動，旨在透過值得信賴的網紅推薦，強化DSW作為季節性、場合穿搭目的地的權威性。我們計畫在第二季持續推進這些行銷舉措，在支持業務關鍵季節性品類的同時，提升品牌相關性。

We were encouraged to see positive momentum in our stores with improving traffic and sales trends and demand that outpaced the broader footwear market in the quarter. We believe these trends reflect the progress we are making in refining our assortment and enhancing the customer experience across our store base.

我們很高興看到門市端出現正向動能，客流與銷售趨勢改善，且本季需求增速超越整體鞋類市場。我們認為這些趨勢反映了我們在精進商品組合、並在整體門市據點提升顧客體驗方面所取得的進展。

As we've mentioned, we are planning several new store openings as well as several remodels this year as we continue focusing on delivering a more elevated and distinctive in-store experience. Turning to our brand portfolio segment, on our last call, we talked about our focus on building and scaling our brand portfolio in 2026.

如我們先前提到的，今年我們規劃數家新店開幕以及多家門市改裝，持續聚焦提供更高端且更具差異化的店內體驗。接著談到我們的品牌組合部門，在上次電話會議中，我們談到於2026年聚焦打造並擴大我們的品牌組合。

And we were pleased with the strong start to the year, with Q1 sales increasing 19% and operating income improving by $13 million versus last year. Within our exclusive brands business, we continued to build on our strong partnership with the DSW team.

我們對今年的強勁開局感到滿意：第一季銷售成長19%，營業利益較去年改善1,300萬美元。在我們的獨家品牌業務中，我們持續深化與DSW團隊的強勁合作關係。

Newness across the assortment resonated well with consumers during the quarter, and we remain confident in our ability to build on momentum in categories where we are seeing meaningful growth opportunities at DSW throughout the year. Topo continued its strong momentum and grew 32% during the quarter in line with our expectations.

本季商品組合的新品表現獲得消費者良好回響；我們仍對全年在DSW具備明顯成長機會的品類上延續動能充滿信心。Topo延續強勁動能，本季成長32%，符合我們的預期。

Growth was driven by strong demand across core franchises. Successful new product introductions, momentum in the specialty running and expanded distribution partnerships that further strengthens the brand positioning within the category.

成長主要由核心系列的強勁需求所帶動。成功的新產品導入、專業跑步領域的動能，以及擴大的通路合作夥伴關係，進一步強化該品牌在品類中的定位。

Jessica Simpson also delivered another strong quarter, growing 35% versus last year, benefiting from continued strength in dress trends and positive response to the evolution of the assortment, including lower heel heights across keystones.

Jessica Simpson同樣交出另一個強勁季度，較去年成長35%，受惠於正裝趨勢持續強勁，以及消費者對商品組合演進的正面回應，包括在主力款式上採用更低的跟高。

Keds generated encouraging growth of 35%, benefiting from expanded distribution and momentum from newness across the assortment in both digital and wholesale channels as we entered the year with a sharper assortment and cleaner inventory levels.

Keds實現令人鼓舞的35%成長，受惠於通路擴張，以及我們以更精準的商品組合與更乾淨的庫存水位進入新年度後，在數位與批發渠道的新品動能。

Across the portfolio, we remain focused on supporting profitable, sustainable growth while leveraging the strategic advantages of vertical integration and sourcing capabilities as well as our strong retail partnerships.

在整體品牌組合方面，我們仍聚焦支持具獲利性、可持續的成長，同時運用垂直整合與採購能力的策略優勢，以及我們強大的零售合作夥伴關係。

As we continue scaling the brand portfolio segment, we believe this diversified operating model enhances both profitability and flexibility across our organization. Before I conclude, I want to share a few thoughts on our 2026 guidance. Based on our strong first quarter performance, we now expect full-year EPS to trend toward the high end of the guidance range we shared on our last call.

隨著我們持續擴大品牌組合部門規模，我們相信這種多元化的營運模式能提升整體組織的獲利能力與彈性。在我結束之前，我想分享幾點關於我們2026年財測的看法。基於第一季的強勁表現，我們目前預期全年每股盈餘(EPS)將趨近於上次電話會議所提供指引區間的高端。

We have also had a solid start to Q2 with results trending in line with our expectations. Sheamus will share more detail on the assumptions underlying guidance in a moment. Overall, we are pleased with the progress we are driving across the business.

第二季開局也相當穩健，結果走勢符合我們的預期。Sheamus稍後將更詳細說明指引所依據的假設。整體而言，我們對推動全公司各項進展感到滿意。

Importantly, we continue to deliver sequential improvement in both top-line trends and profitability while remaining disciplined in our execution. I'm proud of the work our teams are doing to strengthen the foundation of designer brands, and I remain confident that our strategic actions position us well for long-term profitable growth.

重要的是，我們在保持執行紀律的同時，持續在營收趨勢與獲利能力上實現逐季改善。我為團隊強化Designer Brands基礎所做的工作感到自豪，也持續有信心，我們的策略行動使我們在長期、具獲利性的成長上具備良好定位。

With that, I'll turn it over to Sheamus.

接下來我把時間交給Sheamus。

Thank you, Doug, and good morning, everyone. We were pleased to deliver a strong start to fiscal 2026 with another quarter of improved operating performance trends. First quarter consolidated net sales of $696 million were up 1.4% versus last year with comparable store sales down 1.1%.

謝謝你，Doug，各位早安。我們很高興在2026財年以強勁開局展開，並再度交出一個營運表現趨勢改善的季度。第一季合併淨銷售額為6.96億美元，較去年成長1.4%，可比門市銷售下滑1.1%。

In our retail segment, first quarter sales were approximately flat versus last year, with comparable store sales down 1.2%. We continue to see strength in average unit retail and traffic trends improved meaningfully with traffic comps improving sequentially by over 500 basis points compared to Q4.

在我們的零售部門，第一季銷售額較去年大致持平，可比門市銷售下滑1.2%。我們持續看到平均單價(AUR)的強勁表現，且客流趨勢明顯改善；相較第四季，客流可比值按季改善超過500個基點。

As Doug mentioned. We experienced some weather-related headwinds in Q1 that impacted sales trends, particularly in our Canada retail business. In our brand portfolio segment, first quarter sales increased 19.4% compared to last year, driven by strong growth in external wholesale sales and continued momentum across Topo, Jessica Simpson and Keds, with each brand contributing meaningful growth during the quarter.

如 Doug 所提到的。我們在第一季遭遇了一些與天氣相關的逆風，影響了銷售趨勢，尤其是在我們加拿大零售業務。在我們的品牌組合部門，第一季銷售額較去年成長 19.4%，主要受外部批發銷售強勁成長，以及 Topo、Jessica Simpson 與 Keds 持續的動能所帶動，且各品牌在本季皆貢獻了顯著成長。

In addition, intercompany sales were also up 24% for the quarter, and as a reminder, these intercompany sales are eliminated through consolidation. Consolidated gross margin in the first quarter was 45.3%, representing a 240 basis points improvement versus last year, driven primarily by stronger IMU, fewer markdowns, and continued optimization of our promotional strategy.

此外，本季公司間銷售亦成長 24%；提醒一下，這些公司間銷售在合併報表中會予以抵銷。第一季合併毛利率為 45.3%，較去年提升 240 個基點，主要由更強的 IMU、較少的折價促銷，以及我們促銷策略持續優化所驅動。

We also continued to see benefits from our focus on channel profitability and fulfillment optimization within retail. As a result of these drivers of margin expansion and the strong increase in brand portfolio sales, consolidated gross profit increased by $20.8 million compared to last year.

我們也持續看到在零售端聚焦通路獲利能力與履約最佳化所帶來的效益。在這些毛利擴張驅動因素以及品牌組合銷售強勁成長的帶動下，合併毛利較去年增加 2,080 萬美元。

For the first quarter, adjusted operating expenses were 42.9% of sales, leveraging 50 basis points versus last year, driven by the cost reduction actions and organizational changes implemented during 2025 and diligent expense management during the quarter.

第一季調整後營業費用占銷售額 42.9%，較去年槓桿改善 50 個基點，主要受 2025 年實施的成本削減措施與組織調整，以及本季嚴謹的費用管理所帶動。

For the first quarter, adjusted operating income was $19.4 million compared to an adjusted operating loss of $1.1 million last year, with the improvement primarily driven by gross profit expansion as discussed earlier. In the first quarter, we had $10.1 million of net interest expense compared to $12 million last year.

第一季調整後營業利益為 1,940 萬美元，相較去年調整後營業損失 110 萬美元，改善主要來自前述毛利擴張。第一季我們的淨利息費用為 1,010 萬美元，去年為 1,200 萬美元。

Our adjusted effective tax rate for the quarter was 54.5% compared to 0% last year. First quarter adjusted net income was $3.8 million or $0.07 per diluted share compared to an adjusted net loss of $13 million last year or a loss of $0.27 per diluted share in the prior year.

本季調整後有效稅率為 54.5%，去年為 0%。第一季調整後淨利為 380 萬美元，或稀釋後每股 0.07 美元；相較去年調整後淨損 1,300 萬美元，或前一年稀釋後每股虧損 0.27 美元。

Turning to inventory, we ended the first quarter with total inventories down 6% compared to last year as we continued to tightly manage inventory levels and focus on improving productivity across the assortment. Importantly, inventory remains clean entering the second quarter with healthy composition across key growth categories.

談到庫存，我們在第一季末的總庫存較去年下降 6%，因我們持續嚴格控管庫存水位，並著重提升整體商品組合的生產力。重要的是，進入第二季時庫存仍維持健康、乾淨的狀態，且在關鍵成長品類上具備良好的結構。

We ended the quarter with $50 million of cash compared to $46 million in Q1 of last year and total liquidity of $189 million. We continued to prioritize balance sheet strength during the quarter. And further reduced debt levels with total debt outstanding of $475 million compared to $523 million at the end of Q1 last year.

本季末現金為 5,000 萬美元，去年第一季為 4,600 萬美元；總流動性為 1.89 億美元。本季我們持續優先強化資產負債表。並進一步降低負債水位，期末未償總負債為 4.75 億美元，較去年第一季末的 5.23 億美元下降。

Now I'd like to spend a few moments on our outlook. As Doug mentioned in his remarks, while we continue to expect sales for the fiscal year in line with our original guidance. Given the strong results in Q1, we now expect full year earnings per share to trend toward the high end of our annual guidance range.

接下來我想花幾分鐘談談我們的展望。如 Doug 在發言中提到，雖然我們仍預期本會計年度銷售將符合原先指引。鑑於第一季的強勁表現，我們現在預期全年每股盈餘將趨近年度指引區間的高端。

In Q2, quarter-to-date performance is supportive of our approach to our annual sales guidance. The quarter began with unfavorable weather that impacted demand for seasonal products. But results improved sequentially week over week in May as weather has normalized and we anticipate total sales to be flat to slightly up for the quarter.

在第二季，截至目前的表現支持我們對全年銷售指引的看法。本季一開始遇到不利天候，影響季節性商品需求。但隨著天氣恢復正常，5 月的結果逐週呈現連續改善，我們預期本季總銷售將持平至小幅成長。

That being said, there remains a moderate amount of uncertainty with tariffs and the macro environment. We are taking a cautious approach to the potential impact of tariff dynamics on our business. And assuming a substantial portion of any potential refunds will be offset by increased risk from the new Section 301 tariffs that may begin in August.

話雖如此，關稅與總體環境仍存在中度不確定性。我們對關稅變動可能對業務造成的影響採取審慎態度。並假設任何潛在退稅中的相當一部分，將被可能於 8 月開始的新《301 條款》關稅所帶來的風險上升所抵銷。

Given that a significant portion of our business relies on partnerships with national brands who have their own tariff exposure, it also remains to be seen how they will respond to the latest developments on tariffs. Therefore, we have remained cautious in our approach, and we want to clarify that our earnings guidance excludes these potential impacts.

由於我們相當一部分業務仰賴與全國性品牌的合作夥伴關係，而這些品牌也各自承擔關稅曝險，因此他們將如何回應最新的關稅進展仍有待觀察。因此，我們在作法上維持審慎，並希望釐清：我們的獲利指引不包含這些潛在影響。

Looking ahead to the balance of the year, as a reminder, we continue to anticipate sales and earnings growth to be stronger in the first half of the year. Within the second half of the year, we expect earnings to be pressured in the third quarter. As we lap strong performance and return to a normalized level of incentive-based compensation.

展望今年剩餘時間，提醒一下，我們仍預期上半年銷售與獲利成長會較強。在下半年，我們預期第三季獲利將承受壓力。因為我們將面臨去年強勁表現的比較基期，並回到較正常的績效獎酬水準。

We anticipate earnings per share in the fourth quarter will improve notably year over year. To conclude, we're encouraged by the continued improvement in our operating performance and the momentum we have built over the last several quarters.

我們預期第四季每股盈餘將較去年同期顯著改善。總結而言，我們對營運表現持續改善，以及過去幾季累積的動能感到鼓舞。

While the macro environment remains dynamic, we remain focused on discipline execution, inventory productivity, expense management and driving profitable growth across both our retail and brand portfolio segments. We believe that the progress that we've made over the last year continues to strengthen the foundation of the business and positions designer brands for sustainable, profitable growth over the long-term.

儘管總體環境仍在變動，我們仍專注於嚴謹執行、庫存生產力、費用管理，並在零售與品牌組合兩大部門推動具獲利性的成長。我們相信，過去一年所取得的進展持續強化公司的基礎，並使 Designer Brands 在長期具備可持續且具獲利性的成長定位。

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

接下來，我們將開放提問。接線員。

(Operator Instructions)

(接線員指示)

Mauricio Serna, UBS.

Mauricio Serna，瑞銀（UBS）。

Great, good morning. Thanks for taking my question. Just a couple of things to start on the Q2 outlook you just laid out, flat to slightly be up, how does that look between. The retail segment and brands portfolio, how are you thinking about that would be when you think about the two segments?

很好，早安。謝謝讓我提問。先就你們剛才提出的第二季展望談幾點：持平到小幅成長，這在零售部門與品牌組合之間會呈現什麼樣的情況？你們在看這兩個部門時，是如何思考的？

And then nice to see the very strong performance on the gross margin and your initiatives really coming to fruition. On that front, how much more room do you see for gross margin improvement due to all these initiatives that you've implemented over the last year? Thank you.

另外，很高興看到毛利率表現非常強勁，你們的各項措施確實開始開花結果。就這方面而言，基於過去一年你們所推動的這些措施，你們認為毛利率改善還有多大的空間？謝謝。

Morning, Mauricio. This is Doug. Thanks for your question. I'll start and then I'll turn it over to Sheamus to add a little bit of additional color on the financial aspect of it. As it relates to May, we have been encouraged by the trend that we've seen sequentially through the month. As we said, similar to Q1, there was a pretty large headwind.

早安，Mauricio。我是 Doug。謝謝你的提問。我先回答，接著我會請 Sheamus 補充一些財務面的細節。就 5 月而言，我們對本月一路以來看到的逐步改善趨勢感到鼓舞。如我們所說，類似第一季，當時有相當大的逆風。

More impacted in the Canadian business, obviously more prevalent in the Canadian business than it even was in the US but we did see that start to rebound with pretty significant sequential improvement as we move through May. So again, I think we're prudently cautious with regard to our outlook for Q2, which on the retail side would be flat up slightly positive. Still seeing a pretty nice increase on the brand side for Q2.

加拿大業務受到的影響更大，顯然在加拿大的影響甚至比美國更為明顯；但隨著 5 月推進，我們確實看到開始回升，且呈現相當顯著的連續改善。因此，我認為我們對第二季展望仍保持審慎；在零售端將是持平到小幅正成長。而在品牌端，第二季仍可望看到相當不錯的成長。

That was a pretty stellar performance that brands delivered in Q1, obviously up 19%. And again, we see a similar trend continuing into Q2. On the gross margin piece of it, a lot of -- it is structural with regards to the actions that the team has been working on, 240 basis points expansion on overall consolidated gross margin.

品牌在第一季交出相當亮眼的表現，顯然成長19%。而且我們看到類似的趨勢延續到第二季。在毛利率方面，其中很大一部分——是結構性的，與團隊一直在推動的各項行動有關，整體合併毛利率擴張240個基點。

But on the retail side of note, about 65% of the favorability was related to lower markdowns. And about 35% related to IMU, so it's not just mix. It's a combination of really focusing on channel profitability, removing some of the stacking of promotions that we're doing that were just not OI accretive, taking a look at the shipping threshold on the digital platform and then obviously the teams that have done a stellar job managing inventory.

不過在零售端值得注意的是，大約65%的有利因素來自較少的降價促銷（markdown）。約35%來自IMU，因此不只是產品組合（mix）。這是多項因素的結合：真正聚焦通路獲利能力、移除我們正在做但對營業利益（OI）沒有增益的促銷疊加、檢視數位平台的免運門檻，當然還有團隊在庫存管理上做得非常出色。

We ended the quarter with 6% less inventory than last year, so just lower reliance on clearance markdowns and pulling back on a little bit of the promotionality of it as well. So that's kind of the high level as it relates to the GM aspect. Anything to add, Sheamus?

本季結束時，我們的庫存比去年少6%，因此對清倉降價的依賴更低，也稍微降低了促銷力度。以上大致是與毛利（GM）面向相關的重點。Sheamus，你還要補充什麼嗎？

Yeah, I think as Doug mentioned, the great thing about the margin improvement is we've seen it from a number of different areas, whether it's improved IMU, improved markdowns, improved promotional cadence. What we've talked about consistently is we see that as a bigger opportunity in the first half of the year, so we're seeing that in Q1, we expect to see that in Q2 as we move into the back half of the year and begin to lap some of the significant improvements that we had last year those margin improvements relative to prior year results become a little bit more challenging. But in Q2, we are expecting to see continued margin improvement.

是的，我想如Doug提到的，毛利改善最棒的一點是，我們在多個不同領域都看到了改善，不論是IMU提升、降價促銷改善、促銷節奏改善。我們一直在談的是，我們認為這在上半年是更大的機會，所以我們在第一季看到了，也預期在第二季會持續看到；但當我們進入下半年，開始與去年已經取得的顯著改善形成比較基期（lap）時，相較於前一年的毛利改善會變得更具挑戰。不過在第二季，我們預期仍會看到毛利持續改善。

Very helpful. And then a couple of other things. Just below the operating line, how should we think about interest expenses, tax rate and share count just for housekeeping of our models? Thank you.

非常有幫助。接著還有幾點。在營業利益線以下，為了我們模型的基本假設整理，利息費用、稅率與股數應該如何看待？謝謝。

So in terms of the overall guidance, obviously, we gave expectations for the full year in terms of EPS to give you some color in terms of the OpEx expenses. There are some puts and takes as you think about it relative to last year. As I commented on margin, I think we see a similar trend in terms of OpEx in the back half of the year, where last year we had some significant benefits and reductions.

就整體財測指引而言，顯然我們已提供全年EPS的預期，讓你對營業費用（OpEx）有一些脈絡。相較去年，當你思考時會有一些此消彼長的因素。如同我在毛利上所評論的，我認為在OpEx方面，我們也看到類似的趨勢出現在下半年；去年下半年我們有一些顯著的效益與費用降低。

And we are anticipating that there will be some pressure on those expenses as we move into the back half of the year. For example, in Q3, as we layer in our full incentive compensation programs and stock comp programs, there's upwards of a $10 million impact in terms of OpEx in the quarter relative to putting some of those programs back in full effect. They're obviously variable based upon results and profitability, but last year had no expenses in the quarter.

而我們預期，隨著進入下半年，這些費用會面臨一些壓力。例如在第三季，當我們把完整的激勵薪酬計畫與股票薪酬（stock comp）計畫納入後，相較於把這些計畫恢復至全面實施之前，該季OpEx的影響最高可達約1,000萬美元。這些費用顯然會依結果與獲利而變動，但去年該季沒有相關費用。

So we are anticipating the gross expense to increase as a result of that. In terms of the tax rate. This quarter was a relatively unusual quarter in terms of the tax rate being 54.5%, and that's due to a combination of factors, one being some fixed state and local taxes and the second being as we again layer in various executive comp expenses that are excluded for taxes.

因此我們預期總費用會因此增加。至於稅率。本季稅率為54.5%，相對不尋常，這是多項因素共同造成：其一是一些固定的州與地方稅，其二是我們在重新納入各項高階主管薪酬費用時，其中有些項目在稅務上不得扣除。

Those permanent items when calculated on a relatively low taxable income can skew the rate to a higher-than-normal rate, and that's what we saw in Q2. For the full year, we're anticipating some impact of that, but it lessens. So I would expect our full year tax rate to be in the low 40s in terms of the percentage and that's what we have built into our guidance expectations that we laid out earlier in the year and as are continuing to reiterate those expectations for the full year in terms of EPS.

這些永久性差異項目在相對較低的課稅所得下計算時，會把有效稅率拉高到高於正常水準，而這就是我們在第二季看到的情況。就全年而言，我們預期仍會有一些影響，但程度會降低。因此我預期全年有效稅率會落在40%出頭（low 40s）的區間，這也已納入我們先前提出的全年指引假設中；我們也持續重申先前對全年EPS的預期。

Got it, in terms of share count?

了解，那股數方面呢？

Share count, we're continuing to anticipate based upon shifting back to profitability this year that the share count will include the fully diluted calculations. So we're expecting share count to be approximately 58 million shares as we move through the year.

股數方面，基於今年回到獲利狀態的預期，我們仍預期股數將採完全稀釋（fully diluted）計算。因此我們預期全年過程中的股數約為5,800萬股。

Thank you so much.

非常感謝。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Doug Howe for any closing remarks.

(接線員指示) 問答環節到此結束。我想把電話會議交回給Doug Howe，請他做結語。

In closing, I just want to reiterate that we are successfully transforming our business. The strategic actions that we're taking are delivering results and we're seeing clear momentum across those priorities. Our strategy is working, winning with the merchandise that matters of our customers amplifying DSW's brand positioning, elevating our in-store experience and building a scalable profitable brand portfolio. None of this progress would be possible without the dedication and the hard work of our associates.

最後，我想再次強調，我們正在成功轉型我們的業務。我們所採取的策略性行動正在帶來成果，我們也看到這些優先事項上有明確的動能。我們的策略正在奏效：以對客戶重要的商品取勝、強化DSW的品牌定位、提升門市體驗，並打造可擴張且具獲利能力的品牌組合。若沒有同仁們的投入與辛勤付出，這些進展都不可能實現。

Their commitment continues to drive our success, and I want to express my sincere appreciation for everything that they do every day. I'd also like to thank everyone who joined us on today's call for your continued interest and your support. We remain focused. We are confident in our direction and we're excited about the opportunities ahead. Thank you.

他們的承諾持續推動我們的成功，我也想對他們每天所做的一切表達由衷的感謝。我也要感謝今天加入電話會議的各位，謝謝你們持續的關注與支持。我們將持續專注。我們對方向充滿信心，也對未來的機會感到振奮。謝謝。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議到此結束。感謝各位參加今天的簡報。您現在可以掛線。