DICK'S Sporting Goods Inc (DKS) 2022 Q1 法說會逐字稿

Hello, everyone, and welcome to the First Quarter 2022 DICK'S Sporting Goods, Inc. Earnings Conference Call. My name is Victoria, and I will be coordinating your call today. (Operator Instructions)

大家好，歡迎來到 2022 年第一季度 DICK'S Sporting Goods, Inc. 收益電話會議。我的名字是維多利亞，今天我將協調你的電話。 （操作員說明）

I'll now pass you over to your host, Nate Gilch, Senior Director of Investor Relations, to begin. Please go ahead.

我現在將您轉給您的主持人投資者關係高級總監 Nate Gilch 開始。請繼續。

Good morning, everyone and thank you for joining us to discuss our first quarter 2022 results. On today's call will be Lauren Hobart, our President and Chief Executive Officer; and Navdeep Gupta, our Chief Financial Officer. A playback of today's call will be archived in our Investor Relations website located at investors.dicks.com for approximately 12 months.

大家早上好，感謝您加入我們討論我們 2022 年第一季度的業績。今天的電話會議將是我們的總裁兼首席執行官 Lauren Hobart；和我們的首席財務官 Navdeep Gupta。今天電話會議的回放將在我們位於 Investors.dicks.com 的投資者關係網站上存檔大約 12 個月。

As a reminder, we will be making forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our last annual report on Form 10-K and cautionary statements made during this call. We assume no obligation to update any of these forward-looking statements or information.

提醒一下，我們將做出前瞻性陳述，這些陳述受到各種風險和不確定性的影響，可能導致我們的實際結果與這些陳述產生重大差異。任何此類聲明都應與我們在提交給美國證券交易委員會的文件中的收益發布和風險因素討論中的警告聲明一起考慮，包括我們上一份關於 10-K 表格的年度報告和在本次電話會議期間做出的警告聲明。我們不承擔更新任何這些前瞻性陳述或信息的義務。

As required by new accounting rules adopted in the current period, our first quarter GAAP earnings per diluted share assumes share of settlement of our convertible senior notes issued in Q1 2020, which excludes the after-tax interest expense and includes the total shares underlying these notes. Given our intent to settle the principal portion of these notes in cash and the shares that will be delivered by our bond hedged settlements, we do not expect the notes to have a dilutive effect at settlement. Accordingly, we believe that reflecting the notes as debt more closely aligns with the underlying economics of the transaction, which is reflected in our non-GAAP earnings per diluted share. For additional details on this or to find a reconciliation of any non-GAAP financial measure referenced on today's call, please refer to our Investor Relations website.

根據本期採用的新會計規則的要求，我們的第一季度 GAAP 每股攤薄收益假設我們在 2020 年第一季度發行的可轉換優先票據的結算份額，其中不包括稅後利息費用，並包括這些票據的總股份.鑑於我們打算以現金結算這些票據的主要部分以及將通過我們的債券對沖結算交付的股份，我們預計票據不會在結算時產生攤薄效應。因此，我們認為將票據反映為債務更符合交易的基本經濟學，這反映在我們的非公認會計準則每股攤薄收益中。有關這方面的更多詳細信息或查找今天電話會議中引用的任何非公認會計原則財務指標的對賬，請參閱我們的投資者關係網站。

And finally, for your future scheduling purposes, we are tentatively planning to publish our second quarter 2022 earnings results on August 23, 2022.

最後，為了您未來的日程安排，我們暫定於 2022 年 8 月 23 日發布我們的 2022 年第二季度收益結果。

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

有了這個，我現在將把電話轉給勞倫。

Thank you, Nate, and good morning, everyone. We are pleased with our first quarter results as our team continued to move with agility and execute well in a highly dynamic environment. Before diving into the results of the quarter, I think it's important to recognize that over the past 2 years, we have demonstrated our ability to adeptly manage through the pandemic and other challenges and we are confident in our continued ability to adapt quickly and execute through uncertain macroeconomic conditions, while keeping our athletes at the heart of every decision we make.

謝謝你，Nate，大家早上好。我們對第一季度的業績感到滿意，因為我們的團隊繼續靈活地行動，並在高度動態的環境中執行良好。在深入了解本季度的結果之前，我認為重要的是要認識到，在過去的 2 年中，我們已經證明了我們能夠熟練應對大流行和其他挑戰的能力，並且我們對我們繼續快速適應和執行的能力充滿信心。不確定的宏觀經濟條件，同時讓我們的運動員處於我們做出的每一個決定的核心。

With that context, I do want to take a moment to address the adjustments we made to our 2022 outlook this morning. Like everyone else, we have been carefully monitoring the rapidly evolving macroeconomic environment and assessing our expectations based on our experience running our business across economic cycles. With this perspective, we believe it's appropriate to be cautious and are, therefore, lowering our outlook for the year.

在這種情況下，我確實想花一點時間來談談我們今天早上對 2022 年展望所做的調整。與其他所有人一樣，我們一直在仔細監控快速發展的宏觀經濟環境，並根據我們在整個經濟周期中開展業務的經驗評估我們的預期。從這個角度來看，我們認為謹慎行事是適當的，因此正在降低我們對今年的展望。

To be clear, we expect our performance will continue to meaningfully exceed 2019 levels, reflecting the strength of our core strategies and the changes we've made in our business over the past 5 years. DICK'S is the clear market leader, and we are well positioned to extend our lead and build on our competitive advantages in the years ahead. We continue to closely watch the macro landscape and have the flexibility in our business to remain nimble.

需要明確的是，我們預計我們的業績將繼續顯著超過 2019 年的水平，這反映了我們核心戰略的實力以及過去 5 年我們在業務中所做的變化。 DICK'S 是當之無愧的市場領導者，我們有能力在未來幾年擴大我們的領先地位並建立我們的競爭優勢。我們將繼續密切關注宏觀形勢，並在我們的業務中保持靈活性。

Now getting back to our results. As we announced earlier this morning, we delivered sales of $2.7 billion in the first quarter. This included a comparable store sales decline of 8.4%, which followed a 117% increase in comp sales in the same period of the prior year. This also reflected the anniversary of significant stimulus payments as well as anticipated sales normalization in certain categories.

現在回到我們的結果。正如我們今天早上早些時候宣布的那樣，我們在第一季度實現了 27 億美元的銷售額。其中包括可比商店銷售額下降 8.4%，而去年同期的可比銷售額增長了 117%。這也反映了重大刺激支付的周年紀念日以及某些類別的預期銷售正常化。

Importantly, sales continued to run substantially above pre-COVID levels, up 41% versus Q1 2019 and sequentially accelerated from last quarter. These top line results reinforce our strong conviction that the shift in consumer behavior over the past 2 years is indeed structural. Consumers have made lasting lifestyle changes, with an increased focus on health and fitness and greater participation in sports and outdoor activities. Our business is squarely at the center of these secular trends and the actions we have taken over the past 5 years to transform our company have given us significant competitive advantages across all aspects of our business.

重要的是，銷售額繼續大幅高於 COVID 之前的水平，與 2019 年第一季度相比增長了 41%，並且比上一季度有所增長。這些頂級結果強化了我們的堅定信念，即過去 2 年消費者行為的轉變確實是結構性的。消費者的生活方式發生了持久的改變，更加註重健康和健身，更多地參與體育和戶外活動。我們的業務正處於這些長期趨勢的中心，過去 5 年我們為實現公司轉型而採取的行動使我們在業務的各個方面都具有顯著的競爭優勢。

Our increasingly differentiated product assortment, combined with our disciplined and more sophisticated promotional strategies, continues to drive strong merchandise margin growth. During the quarter, we expanded our merchandise margin rate by 143 basis points versus 2021.

我們日益差異化的產品分類，加上我們嚴謹和更複雜的促銷策略，繼續推動強勁的商品利潤率增長。在本季度，我們將商品利潤率與 2021 年相比擴大了 143 個基點。

Before continuing, let me underscore this critical point that is not always appreciated about our transformation. The content of the product that we carry today is very different from the products we carried 5 years ago. It's higher heat and more narrowly distributed than what you'll find in the market as a whole, and therefore, it is not as susceptible to promotion. In addition, the tools we have today to surgically adjust pricing are significantly more sophisticated than they were several years ago. With these fundamental changes, we are very confident that the majority of our merchandise margin rate expansion that we've driven over the past 2 years is sustainable.

在繼續之前，讓我強調這個關鍵點，我們的轉型並不總是被理解。我們今天攜帶的產品的內容與我們5年前攜帶的產品有很大的不同。它比您在整個市場上發現的熱量更高且分佈更窄，因此不易受到推廣。此外，我們今天用來調整定價的工具比幾年前要復雜得多。有了這些根本性的變化，我們非常有信心，我們在過去 2 年推動的大部分商品利潤率擴張是可持續的。

Led by our structurally higher sales and merchandise margin compared to pre-COVID levels, we achieved double-digit EBT margin of over 12% and non-GAAP earnings per diluted share of $2.85, both significantly ahead of any pre-COVID first quarter in our history. We entered 2022 in a position of tremendous strength and we're focused on enhancing our existing strategy to further strengthen our core business and drive long-term profitable growth.

與 COVID 之前的水平相比，在我們結構性更高的銷售和商品利潤率的帶領下，我們實現了超過 12% 的兩位數 EBT 利潤率和 2.85 美元的非公認會計原則每股攤薄收益，這兩者都大大領先於我們在 COVID 之前的任何第一季度歷史。我們以強大的實力進入 2022 年，我們專注於加強我們現有的戰略，以進一步加強我們的核心業務並推動長期盈利增長。

Our approach is centered on our best-in-class omnichannel platform, which features our stores as a hub. During the first quarter, our stores enabled over 90% of total sales, serving both our in-store athletes and providing over 800 forward points of distribution for omnichannel fulfillment through ship from store, in-store pickup or curbside. We also continue to invest in an enhanced service model and lean into highly engaging experiences to better serve our athletes and reinforce their loyalty.

我們的方法以我們一流的全渠道平台為中心，該平台以我們的商店為中心。在第一季度，我們的商店實現了超過 90% 的總銷售額，為我們的店內運動員提供服務，並通過從商店發貨、店內取貨或路邊提供超過 800 個全渠道配送點。我們還繼續投資於增強的服務模式，並傾向於高度參與的體驗，以更好地為我們的運動員服務並增強他們的忠誠度。

Our digital capabilities remain core to our omnichannel success and we are continuing to prioritize investments in technology and data science. Furthermore, we remain focused on maintaining our strong culture, putting our teammates, athletes and communities at the center of everything we do. This work continues to have a positive impact, as we were recently awarded back-to-back annual certification by Great Place to Work. I spend a lot of time visiting our stores and distribution centers and the positive energy and sense of community from the teams I meet is fantastic. Our strong dedicated team and our ability to attract and retain talent are key competitive advantages for us.

我們的數字能力仍然是我們全渠道成功的核心，我們將繼續優先考慮對技術和數據科學的投資。此外，我們仍然專注於維護我們強大的文化，將我們的隊友、運動員和社區置於我們所做的一切的中心。這項工作繼續產生積極影響，因為我們最近獲得了 Great Place to Work 的背靠背年度認證。我花了很多時間參觀我們的商店和配送中心，我遇到的團隊的積極能量和社區意識非常棒。我們強大的敬業團隊以及吸引和留住人才的能力是我們的主要競爭優勢。

Next, within merchandising, our relationships with key brands remain stronger than ever. Our assortment is on trend and we are providing our athletes with enhanced access to the hottest styles across a wide range of categories from the top brands in sports. Importantly, we also are ensuring that we have products at prices that address the needs of all athletes. For example, through DSG, our largest vertical brand, we offer high-quality, fashion-forward product at a tremendous value across men's, women's and youth. Our key lifestyle vertical brands, including CALIA and VRST, are also resonating strongly with our athletes and we continue to invest in and grow these brands.

接下來，在商品銷售方面，我們與主要品牌的關係比以往任何時候都更加牢固。我們的產品系列緊跟潮流，我們為運動員提供更多接觸頂級運動品牌的各種類別中最熱門款式的機會。重要的是，我們還確保我們的產品價格能夠滿足所有運動員的需求。例如，通過我們最大的垂直品牌 DSG，我們為男士、女士和青年提供具有巨大價值的高品質、時尚前衛的產品。我們的主要生活方式垂直品牌，包括 CALIA 和 VRST，也與我們的運動員產生了強烈的共鳴，我們將繼續投資和發展這些品牌。

Lastly, our new concepts, including DICK'S House of Sport, Golf Galaxy Performance Center, Public Lands and Going, Going, Gone!, are delivering promising early results. Today, we are really excited to open our third House of Sport store in Minnetonka, Minnesota. House of Sport has exceeded our expectations and has been a great example of the power of elevated service, community engagement and merchandise presentations. We look forward to continuing to refine and grow these concepts, while pulling key learnings into our core DICK'S and Golf Galaxy chains.

最後，我們的新概念，包括 DICK'S House of Sport、Golf Galaxy 表演中心、Public Lands 和 Going, Going, Gone!，正在取得可喜的早期成果。今天，我們非常高興在明尼蘇達州明尼通卡開設我們的第三家運動之家商店。體育之家超出了我們的預期，是提升服務、社區參與和商品展示力量的一個很好的例子。我們期待繼續完善和發展這些概念，同時將關鍵知識融入我們的核心 DICK'S 和 Golf Galaxy 連鎖店。

In closing, we remain confident in our strategies and our ability to deliver long-term sales and earnings growth. DICK'S has a unique and powerful position in the marketplace. Sports and an active lifestyle are important in all times and now more than ever as we help families get outside together and lead active and healthy lives. Our teammates are united behind our common purpose, which is to create confidence and excitement by personally equipping all athletes to achieve their dreams, especially during these times of uncertainty.

最後，我們對我們的戰略以及實現長期銷售和盈利增長的能力充滿信心。 DICK'S 在市場上擁有獨特而強大的地位。運動和積極的生活方式在任何時候都很重要，現在比以往任何時候都更重要，因為我們幫助家庭一起外出並過上積極健康的生活。我們的隊友團結在我們共同的目標背後，即通過個人裝備所有運動員實現他們的夢想來創造信心和興奮，尤其是在這些不確定的時期。

Before concluding, I want to thank all of our teammates for their hard work and unwavering dedication to our business. I'll now turn the call over to Navdeep to review our financial results and outlook in more detail.

在結束之前，我要感謝我們所有的隊友，感謝他們的辛勤工作和對我們業務的堅定奉獻。我現在將電話轉給 Navdeep，以更詳細地審查我們的財務業績和前景。

Thank you, Lauren, and good morning, everyone. Let's begin with a brief review of our first quarter results. Consolidated sales decreased 7.5% to approximately $2.7 billion. Comparable store sales decreased 8.4% following a 117% increase in comp sales in the same period last year. As Lauren indicated, comps were impacted as we anniversaried significant stimulus payments from the prior year quarter. And in addition, we saw the anticipated sales normalization in certain categories that surged throughout the pandemic. And as part of this year-over-year anniversary, transactions declined by 6.4% and average ticket declined by 2%.

謝謝你，勞倫，大家早上好。讓我們首先簡要回顧一下我們的第一季度業績。合併銷售額下降 7.5% 至約 27 億美元。可比商店銷售額在去年同期增長 117% 後下降了 8.4%。正如勞倫所指出的，當我們從上一季度開始紀念重大刺激付款時，補償受到了影響。此外，我們看到在整個大流行期間飆升的某些類別的預期銷售正常化。作為今年同比周年紀念的一部分，交易量下降了 6.4%，平均票價下降了 2%。

Importantly, our sales continue to run significantly above pre-COVID levels. Compared to 2019, consolidated sales increased 41% and sequentially accelerated from the most recent quarter. Gross profit in the first quarter was $984.7 million or 36.7% of net sales and declined 83 basis points versus last year. This decline was driven by 103 basis points increase in supply chain-related costs and a deleverage on fixed occupancy cost of 94 basis points from the sales decrease. These items were partially offset by continued merchandise margin rate expansion. For the quarter, merchandise margin increased 143 basis points as we continue to see the benefits from our increasingly differentiated product assortment, combined with our disciplined and more sophisticated promotional strategies and clearance pricing. We also saw favorable sales mix.

重要的是，我們的銷售額繼續大大高於 COVID 之前的水平。與 2019 年相比，綜合銷售額增長了 41%，並且比最近一個季度環比增長。第一季度毛利潤為 9.847 億美元，占淨銷售額的 36.7%，與去年相比下降了 83 個基點。這一下降是由於供應鏈相關成本增加 103 個基點，以及銷售下降導致固定入住成本去槓桿化 94 個基點。這些項目被持續的商品利潤率擴張部分抵消。在本季度，商品利潤率增加了 143 個基點，因為我們繼續看到我們日益差異化的產品分類以及我們更嚴格和更複雜的促銷策略和清倉定價所帶來的好處。我們還看到了有利的銷售組合。

SG&A expenses were $615.3 million or 22.79% of net sales and deleveraged 195 basis points compared to last year, primarily due to the decrease in sales. The increase in SG&A expense dollar is driven by our investment in advertising and hourly wage rates. These items were partially offset by lower incentive compensation expense and $17 million of income associated with changes in the investment values of our deferred compensation plans, which is fully offset by the investment loss recognized in other expense line. In addition, SG&A also included approximately $13 million of COVID-related safety costs in the prior year quarter.

SG&A 費用為 6.153 億美元，占淨銷售額的 22.79%，與去年相比去槓桿化 195 個基點，主要是由於銷售額下降。 SG&A 費用美元的增加是由我們對廣告和小時工資率的投資推動的。這些項目被較低的激勵薪酬費用和與我們遞延薪酬計劃的投資價值變化相關的 1700 萬美元收入部分抵消，這被其他費用項目中確認的投資損失完全抵消。此外，SG&A 還包括上一季度約 1300 萬美元的 COVID 相關安全成本。

Driven by our structurally higher sales and merchandise margin compared to pre-COVID levels, EBT was $331.9 million or 12.29% of net sales. In total, we delivered non-GAAP earnings per diluted share of $2.85. This compares to a non-GAAP earnings per diluted share of $3.79 last year and $0.62 in 2019.

由於與 COVID 之前的水平相比，我們結構性地提高了銷售和商品利潤率，EBT 為 3.319 億美元，占淨銷售額的 12.29%。總的來說，我們實現了非公認會計原則每股攤薄收益 2.85 美元。相比之下，去年非公認會計準則每股攤薄收益為 3.79 美元，2019 年為 0.62 美元。

Now looking to our balance sheet. We ended Q1 with approximately $2.25 billion of cash and cash equivalent and no borrowings on our $1.6 billion unsecured credit facility. Our quarter-end inventory levels increased 40% compared to Q1 of last year, with product flow improving as the quarter progressed. Looking ahead, we feel good about our overall inventory levels for Q2 and are prepared to continue navigating a dynamic global supply chain environment through the rest of the year.

現在看看我們的資產負債表。我們在第一季度結束時擁有約 22.5 億美元的現金和現金等價物，並且我們 16 億美元的無擔保信貸額度沒有借款。與去年第一季度相比，我們的季度末庫存水平增加了 40%，隨著季度的進展，產品流量也在改善。展望未來，我們對第二季度的整體庫存水平感覺良好，並準備在今年餘下時間繼續駕馭充滿活力的全球供應鏈環境。

Turning to our first quarter capital allocations, net capital expenditures were $53.9 million and we paid $46.1 million in quarterly dividends. During the quarter, we exchanged $100 million at approximately 17% of the outstanding principle of our convertible senior notes for cash and unwound the corresponding portion of convertible note hedge and warrants for 1.8 million shares of our common stock. Following this exchange, we have approximately $475 million in aggregate principal amount outstanding. We also repurchased 417,000 shares of our stock for $42 million at an average price of $101.39.

談到我們第一季度的資本分配，淨資本支出為 5390 萬美元，我們支付了 4610 萬美元的季度股息。在本季度，我們以可轉換優先票據未償本金約 17% 的比例將 1 億美元換成現金，並為我們的 180 萬股普通股解除可轉換票據對沖和認股權證的相應部分。在此次交換之後，我們的未償本金總額約為 4.75 億美元。我們還以 101.39 美元的平均價格以 4200 萬美元的價格回購了 417,000 股我們的股票。

Now let me wrap up with our outlook for 2022. We are pleased with the start of our year and continue to see meaningful growth above 2019 levels. However, as Lauren mentioned, we have been carefully monitoring the economic environment and there are many puts and takes at play. With an increasingly uncertain macroeconomic backdrop, geopolitical environment and a dynamic global supply chain, we believe it is prudent to adopt an appropriately cautious outlook for the year. Thus, we are adjusting our 2022 guidance range.

現在讓我總結一下我們對 2022 年的展望。我們對今年的開始感到高興，並繼續看到高於 2019 年水平的有意義的增長。然而，正如勞倫所提到的，我們一直在仔細監控經濟環境，並且有很多看跌期權在起作用。在宏觀經濟背景、地緣政治環境和充滿活力的全球供應鏈日益不確定的情況下，我們認為對今年的前景採取適當謹慎的態度是審慎的做法。因此，我們正在調整 2022 年的指導範圍。

For the year, we now expect non-GAAP earnings per diluted share in the range of $9.15 to $11.70 and a comparable store sales in the range of negative 8% to negative 2%. EBT is expected to be in the range of $1.05 billion to $1.35 billion, with EBT margins expected to be approximately 10% at the midpoint. This includes additional risk in supply chain-related costs and higher wage rates as well as greater than originally anticipated normalization of promotional landscape over the balance of the year. As a reminder, this also includes approximately $55 million of pretax interest expense associated with our $1.5 billion long-term debt.

今年，我們現在預計非公認會計準則每股攤薄收益在 9.15 美元至 11.70 美元之間，可比商店銷售額在負 8% 至負 2% 之間。 EBT 預計將在 10.5 億美元至 13.5 億美元之間，預計 EBT 利潤率在中點約為 10%。這包括供應鏈相關成本的額外風險和更高的工資率，以及今年餘下時間促銷環境的正常化程度高於最初預期。提醒一下，這還包括與我們 15 億美元的長期債務相關的大約 5500 萬美元的稅前利息費用。

Our earnings guidance assumes an effective tax rate between 23% and 24%, and is based on an approximately 88 million average diluted shares outstanding. In addition, our plan now includes a minimum of $300 million of share repurchases, the effect of which is included in our EPS guidance. Importantly, we are continuing to invest in our business for long term, and for the year, expect the net capital expenditure of $340 million to $365 million.

我們的收益指引假設有效稅率在 23% 至 24% 之間，並基於約 8800 萬股平均攤薄後流通股。此外，我們的計劃現在包括至少 3 億美元的股票回購，其影響包含在我們的每股收益指導中。重要的是，我們將繼續長期投資於我們的業務，預計今年的淨資本支出為 3.4 億至 3.65 億美元。

In closing, we are pleased with the results of our first quarter. And while we recognize we are in an uncertain economic environment, DICK'S is a clear market leader, and we remain structurally stronger and more profitable company today compared to pre-COVID. And at the midpoint of our updated outlook, we expect sales to increase approximately 35% versus 2019 and EBT margin of approximately 10%, doubling our 2019 EBT rate. Our financial position is strong, ending Q1 with approximately $2.25 billion of cash and cash equivalents, and we remain confident in our strategy and our ability to drive sales and profitability growth over the long term.

最後，我們對第一季度的業績感到滿意。雖然我們認識到我們處於不確定的經濟環境中，但 DICK'S 是一個明顯的市場領導者，與 COVID 之前相比，我們今天在結構上仍然更強大，利潤更高。在我們更新展望的中點，我們預計銷售額將比 2019 年增長約 35%，EBT 利潤率約為 10%，是 2019 年 EBT 率的兩倍。我們的財務狀況強勁，第一季度末現金和現金等價物約為 22.5 億美元，我們對我們的戰略以及長期推動銷售和盈利能力增長的能力充滿信心。

This concludes our prepared comments. Thank you for your interest in DICK'S Sporting Goods. Operator, you may now open the line for questions.

我們準備好的評論到此結束。感謝您對 DICK'S 體育用品的關注。接線員，您現在可以打開線路提問。

(Operator Instructions) And our first question comes from Simeon Gutman at Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Simeon Gutman。

I would like to follow up on the revision. I think the midpoint, it's about a 16% cut, and Navdeep, you mentioned a few factors. Can you talk to us about the current environment? What's changing as we speak? Sales, gross margin, can you talk about the inventory balance? It looks like you're carrying a good amount going into the year. Are you already seeing that elevated promotion? Are you seeing in line with what's in your guidance? So that's my first question.

我想跟進修訂。我認為中點，大約是 16% 的削減，而 Navdeep，你提到了一些因素。你能和我們談談目前的環境嗎？我們說話時發生了什麼變化？銷售額，毛利率，你能談談庫存餘額嗎？看來你今年要帶很多錢了。您是否已經看到提升的促銷活動？你看到的是否與你的指導一致？所以這是我的第一個問題。

Thanks, Simeon. It's Lauren. I think those are all very important questions, and I'll try and parse them all out and answer all of them. We have had, as you know, a fantastic, a very good Q1. We're pleased with our Q1. And we had anticipated increases in our freight cost, in our labor costs and in our product costs as we went into the quarter and we were accurate in our forecasting of those expenses.

謝謝，西蒙。是勞倫。我認為這些都是非常重要的問題，我將嘗試將它們全部解析並回答所有問題。如您所知，我們有一個很棒的、非常好的第一季度。我們對我們的第一季度感到滿意。隨著我們進入本季度，我們預計運費成本、勞動力成本和產品成本會增加，我們對這些費用的預測是準確的。

There's 2 things that have changed that are driving our approach to the guidance for the rest of the quarter. First is that the consumer is going through an awful lot right now. So obviously, macroeconomic trends are challenging, inflation is putting pressure on the consumer at the gas pump and in grocery store, we all know. And then there's this geopolitical environment that is very, very challenging. At the same time, we see that the expenses of those 3 line items, so freight, labor and perhaps product input costs, are accelerating more quickly than we had anticipated. And so we want to be appropriately cautious as we look forward to the year.

有兩件事發生了變化，推動了我們在本季度剩餘時間裡制定指導方針。首先是消費者現在正在經歷很多事情。顯然，宏觀經濟趨勢充滿挑戰，眾所周知，通貨膨脹正在給加油站和雜貨店的消費者帶來壓力。然後是這種非常非常具有挑戰性的地緣政治環境。同時，我們看到這 3 個項目的費用，即運費、人工和產品投入成本，正在以比我們預期更快的速度增長。因此，我們希望在展望這一年時保持適當的謹慎。

However, I want to be very clear that we are not seeing any meaningful trends that are different from what we saw in Q1 and we believe our inventory at plus 40% actually is very healthy and we are very pleased with it. In fact, there are areas where if we could have more, we would have more. There's been some disruption in terms of when inventory is flowing in. But we had anticipated that certain categories, like fitness and outdoor equipment would normalize this year. And they have normalized as we expected. We are still chasing products in certain categories and our inventory is healthy. We are not anticipating any significant markdown risk.

但是，我想非常清楚的是，我們沒有看到任何與第一季度不同的有意義的趨勢，我們相信我們 40% 以上的庫存實際上是非常健康的，我們對此感到非常滿意。事實上，有些領域如果我們可以擁有更多，我們就會擁有更多。在庫存流入方面存在一些干擾。但我們預計某些類別，如健身和戶外設備，今年會正常化。正如我們預期的那樣，它們已經正常化。我們仍在追逐某些類別的產品，我們的庫存很健康。我們預計不會有任何重大的降價風險。

To answer your other question, our -- the promotional environment, we are not seeing a change in the promotional environment. We will obviously continue to monitor that and we will be surgically addressing price changes as we absorb some of the cost increases. But the marketplace has not shifted dramatically in any meaningful way. We are just being appropriately cautious as we look toward a lot of things that are outside of our control when we look at the rest of the year.

為了回答您的另一個問題，我們的促銷環境，我們沒有看到促銷環境發生變化。顯然，我們將繼續對此進行監控，並且隨著我們吸收部分成本增加，我們將通過外科手術解決價格變化。但市場並沒有以任何有意義的方式發生巨大變化。當我們看到今年剩下的時間時，我們會適當地謹慎對待許多我們無法控制的事情。

Okay. The follow-up is the confidence that the industry or your business won't revert further, and we've been talking about this question for 2 years. But is there any categories that you can point to that -- in which consumption is holding or growing at the structurally higher level? Because we're at a much higher water level, as you mentioned, 30%, 40%, even at the midpoint, I think Navdeep said. So which categories are showing us that we won't see that level of reversion?

好的。後續是對行業或您的業務不會進一步恢復的信心，我們已經談論這個問題2年了。但是，您是否可以指出任何類別——其中消費在結構性更高的水平上保持或增長？因為我們的水位要高得多，正如你提到的，30%、40%，甚至在中點，我想 Navdeep 說過。那麼哪些類別向我們展示了我們不會看到這種水平的回歸？

Yes. Across the board, you're absolutely right. If you look at the last 2 years and look at the consumer, every single category in our business has -- virtually everyone except for hunt, has rebaseline meaningfully higher than our pre-pandemic volume. And that reflects the fact that the consumer is outdoors more. They are running, they are walking, they are playing golf. The pandemic-surging categories that we've all been talking about and we expected to normalize are fitness, outdoor equipment, which will include things like bikes and paddles and golf. And those 3 normalize as we expected them to normalize, but we believe they all have long-term growth potential.

是的。總的來說，你是絕對正確的。如果您查看過去 2 年並查看消費者，我們業務中的每個類別（幾乎除了狩獵之外的每個類別）的重新基線都顯著高於我們大流行前的數量。這反映了消費者更多地在戶外的事實。他們在跑步，他們在走路，他們在打高爾夫球。我們一直在談論並希望正常化的流行病激增類別是健身、戶外設備，其中包括自行車、槳和高爾夫球等。並且這 3 個正常化正如我們預期的那樣正常化，但我們相信它們都具有長期增長潛力。

So we are not changing our outlook on any aspect of our business. We actually think in these types of times, people need to get outside. They need to be active. They want to be with their families, and we are well positioned to serve the needs of these athletes.

因此，我們不會改變對業務任何方面的看法。我們實際上認為在這些類型的時代，人們需要走出去。他們需要活躍。他們想和家人在一起，我們有能力滿足這些運動員的需求。

Our next question comes from Adrienne Yih at Barclays.

我們的下一個問題來自巴克萊的 Adrienne Yih。

Great. Lauren, I want to stay on the promo topic because we as well did not see promos this quarter. I guess my question really is the notion that, say, a partnership with Nike, where you're sort of their premier partner, let's just call it, for lack of a better term. Is that causing other competing brands to actually offer you their best and highest heat product as well, so thereby elevating the entire brand and product platform? That's my first question.

偉大的。勞倫，我想繼續討論促銷主題，因為本季度我們也沒有看到促銷。我想我的問題確實是這樣的概念，比如說，與耐克合作，你是他們的主要合作夥伴，讓我們稱之為，因為沒有更好的術語。這是否會導致其他競爭品牌實際上也為您提供他們最好和最高熱度的產品，從而提升整個品牌和產品平台？這是我的第一個問題。

Yes. So our partnership with Nike is at an all-time high, as is our partnership with all of our strategic partners. And I think that's a result, not just of a situational moment in time with certain partners, but the fact that we have invested so much in our stores and in our experience, such that brands who are rooted in sport want to actually showcase their product and their brand in our stores.

是的。因此，我們與耐克的合作關係以及我們與所有戰略合作夥伴的合作關係都處於歷史最高水平。我認為這是一個結果，不僅僅是與某些合作夥伴的情境時刻，而是我們在商店和經驗中投入如此多的事實，以至於植根於運動的品牌想要真正展示他們的產品以及他們在我們商店中的品牌。

So yes, across the board, we are getting access to higher heat and more pristine premier product that's high in consumer demand. And that's a big part of our strategy, and that has been driving our results.

所以，是的，全面而言，我們正在獲得更高的熱量和更原始的優質產品，這些產品對消費者的需求很高。這是我們戰略的重要組成部分，這一直在推動我們取得成果。

Great. And then for Navdeep, a couple of quick ones. Inventory at the end of the quarter was up 40%. You're comfortable with that. What portion of that is cost inflation, like AUC increase? And what portion of that is in transit? So effectively, I'm trying to get to units, so yes.

偉大的。然後對於 Navdeep，有幾個快速的。本季度末的庫存增加了 40%。你對此很滿意。其中哪一部分是成本膨脹，例如 AUC 增加？其中哪一部分在運輸中？如此有效，我正試圖到達單位，所以是的。

Yes. Adrienne, maybe before I go into the details, I think one of the ways to think about the inventory is to also look at what was happening to our inventory position as we were going through 2021. If you look at it, as we called out last year, our inventory position continued to build as we went into the year. So what you're comparing Q1 versus Q1 last year, especially our inventory starts and in-stock levels last year in...

是的。 Adrienne，也許在我詳細介紹之前，我認為考慮庫存的一種方法是同時查看我們在 2021 年期間的庫存狀況。如果你看一下，正如我們所說的那樣去年，隨著我們進入這一年，我們的庫存狀況繼續增加。所以你在比較去年第一季度和第一季度，特別是我們去年的庫存開始和庫存水平......

(technical difficulty)

（技術難度）

Hello, everybody, and thank you for standing by. We have reconnected with the speakers. Adrienne, if you would like to go ahead.

大家好，感謝大家的支持。我們已經重新連接了揚聲器。 Adrienne，如果你想繼續。

I think that you were in the middle of your discussion on last year's inventory?

我認為您當時正在討論去年的庫存？

Yes. Sorry, I'll start back again. So we apologize. I don't know what happened on the line here. We were -- we seem to be connected here at our end and somehow lost the connection. So Adrienne, back to your question, the way we are looking at inventory. We are looking at inventory trends versus 2019 internally because as we talked about in 2021, our inventory levels were building through the year. So the better comparison for inventory is compared to 2019. So our sales are up 41%. Our inventory is up 32%.

是的。對不起，我會重新開始。所以我們道歉。我不知道這裡發生了什麼。我們——我們似乎在我們的盡頭被連接在一起，但不知何故失去了聯繫。 Adrienne，回到你的問題，我們看待庫存的方式。我們正在內部研究與 2019 年相比的庫存趨勢，因為正如我們在 2021 年談到的那樣，我們的庫存水平在全年都在增加。因此，與 2019 年相比，庫存比較好。所以我們的銷售額增長了 41%。我們的庫存增加了 32%。

In terms of the balance between in transit as well as unit versus the prices, I would say, yes, we have a little bit elevated levels of in-transit inventory, not necessarily associated with buying the product ahead for the balance of the year. It's much more of -- to do with the product that we expected to receive in Q1 that is slightly delayed. So that's the reason we have a little bit of elevated levels of in-transit inventory. And it's a balance between unit increase versus AUR increases.

就在途以及單位與價格之間的平衡而言，我想說，是的，我們的在途庫存水平略有升高，這不一定與在今年餘下時間提前購買產品有關。這更多是與我們預計在第一季度收到的產品有關，該產品略有延遲。所以這就是我們在途庫存水平有點高的原因。這是單位增加與 AUR 增加之間的平衡。

Our next question comes from Kate McShane at Goldman Sachs.

我們的下一個問題來自高盛的 Kate McShane。

I wanted to ask about average ticket, which I think you mentioned was down about 2%. Is there any way to parse out that in terms of how much was price inflation versus how much was the change in mix away from maybe some bigger ticket items during the quarter?

我想問一下平均票價，我想你提到的下降了大約 2%。有沒有什麼辦法可以分析出價格上漲的幅度與本季度可能出現的一些更大的票價項目的組合變化有多大？

Yes. Kate, we haven't given the details on that one. But the way -- the easiest way to think about it is it's a combination. Yes, as you expected and as you called out, that as the COVID surge in categories like fitness and the outdoor equipment normalize, that does put a little bit of a pressure on the ticket size, and that is balanced against the overall AUR increases, inflation related that we have seen.

是的。凱特，我們還沒有給出那個的細節。但是方式——考慮它的最簡單的方式是它的組合。是的，正如你所預料的那樣，正如你所說的那樣，隨著健身和戶外設備等類別的 COVID 激增正常化，這確實給門票規模帶來了一點壓力，這與整體 AUR 的增長相平衡，我們已經看到了與通貨膨脹有關的東西。

Okay. And then my follow-up question is, we've heard a lot about adverse weather, whether it be in apparel or auto part retail and just how it affected sales in the first quarter. I know you have some weather-sensitive categories like apparel and team sports in the quarter. Were there any markdowns related to that? And if so, could merch margins have been higher in the quarter?

好的。然後我的後續問題是，我們聽到了很多關於惡劣天氣的消息，無論是服裝還是汽車零部件零售，以及它如何影響第一季度的銷售。我知道您在本季度有一些對天氣敏感的類別，例如服裝和團隊運動。有沒有與此相關的降價促銷？如果是這樣，本季度的商品利潤率會更高嗎？

Yes. Kate, we -- it's Lauren. We had -- we did not see a significant weather impact in any of the key categories, certainly didn't drive any markdown behavior. The main category that experienced an impact from the colder and wetter spring was golf. But as I said, that met our expectations of normalizing.

是的。凱特，我們——是勞倫。我們有 - 我們沒有看到任何關鍵類別的重大天氣影響，當然沒有推動任何降價行為。受到寒冷和潮濕春季影響的主要類別是高爾夫。但正如我所說，這符合我們對正常化的期望。

Our next question comes from Robert Ohmes at Bank of America.

我們的下一個問題來自美國銀行的 Robert Ohmes。

My follow-up question would be maybe more for Navdeep. I was hoping to get more thoughts on what is implied in the, maybe, the midpoint of guidance. The -- I think, Lauren, you said that the consumer is still doing well into 2Q. Does the midpoint of guidance sort of assume the consumer is going to do less well as we move through the year?

對於 Navdeep，我的後續問題可能更多。我希望對指導的中點所隱含的內容有更多的想法。 - 我認為，勞倫，你說消費者在第二季度仍然表現良好。指導的中點是否假設隨著我們這一年的發展，消費者的表現會有所下降？

And then also, merchandise margins, really good in the first quarter. Should we expect merchandise margins to look less good kind of sequentially through the year? And then also, you've highlighted these expenses coming through higher than expected. Would you be planning them to accelerate, growth and expenses, to accelerate year-over-year as well?

此外，第一季度的商品利潤率非常好。我們是否應該期望全年商品利潤率看起來不太好？然後，您還強調了這些費用高於預期。您是否會計劃它們加速增長和支出，並逐年加速？

And also just a clarification on the 2Q to date being similar to 1Q, is that a same-store sales meaning? So should we sort of look for minus 8% to 9% comps in 2Q?

也只是澄清一下2Q至今和1Q類似，是同店銷售的意思嗎？那麼我們應該在第二季度尋找負 8% 到 9% 的補償嗎？

So Robert, that was a very in-depth question. Maybe I'll begin with the last question. So one, we're not giving an inter-quarter guidance here. So what we -- the sentiment that Lauren called out is that we are not seeing a material change in the trends of the business. It has much more to do with the customer and not trying to imply anything in terms of the expectations for Q2.

所以羅伯特，這是一個非常深入的問題。也許我會從最後一個問題開始。因此，我們在這裡不提供季度間指導。所以我們 - 勞倫所說的情緒是，我們沒有看到業務趨勢發生重大變化。它與客戶有更多關係，而不是試圖暗示對第二季度的期望。

So I'll address 3 big questions that you asked. One is the kind of what is our implied midpoint expectations on the sales. Like Lauren said, Q1, we were pleased with our Q1 performance. The business reaccelerated versus 2019 and especially if you look at where we finished in Q4. So we feel really good about the trends of the business and the core categories in Q1. And like Lauren called out again, like we're not seeing a meaningful change in the trajectory of the business in the month of May.

因此，我將解決您提出的 3 個大問題。一種是我們對銷售的隱含中點預期。就像 Lauren 所說，第一季度，我們對第一季度的表現感到滿意。與 2019 年相比，該業務重新加速，尤其是如果您看看我們在第四季度完成的情況。因此，我們對第一季度的業務趨勢和核心類別感覺非常好。就像 Lauren 再次呼籲的那樣，我們沒有看到 5 月份的業務軌跡發生有意義的變化。

The takedown in our guidance on the top line expectation is purely coming out of we being appropriately cautious about the outlook on what is happening in kind of the overall economic landscape. The pressure that our consumer and the consumer in general has is something that we wanted to not ignore and wanted to address that upfront. And that has been kind of included in our sales guidance.

我們對頂線預期的指導被取消純粹是因為我們對整體經濟形勢的前景保持適當謹慎。我們的消費者和一般消費者所面臨的壓力是我們不想忽視並希望提前解決的。這已經包含在我們的銷售指南中。

As we think about the other 2 elements that we called out, we have -- we anticipated that the freight expenses would be elevated. There will be inflation as well as there will be wage pressures. But what we are seeing is that these costs have gotten more pronounced in the last 3 months since we gave the original guidance. The fuel prices continue to remain elevated as well as are continuing to go up. So we wanted to acknowledge these risks that we are seeing from a cost structure perspective and we incorporated that in our guidance.

當我們考慮我們提到的其他兩個要素時，我們已經 - 我們預計運費會增加。會有通貨膨脹，也會有工資壓力。但我們看到的是，自從我們給出最初的指導後，這些成本在過去 3 個月中變得更加明顯。燃料價格繼續保持高位並繼續上漲。因此，我們想承認我們從成本結構的角度看到的這些風險，並將其納入我們的指導。

And the last piece, like we called out, right, we anticipated, again, a little bit of normalization of the promotions in the back half of the year. And now we feel that there may be a higher propensity of the promotions in the back half of the year. Again, we are not seeing anything. It's just being cautious about the overall economic landscape and kind of anticipating what might be happening. And potentially, as Lauren called out, we may be seeing -- we are seeing some increase in input costs. And we may decide not to pass all of those costs to our athletes as well, just trying to do the right thing between the athlete as well as the long-term potential of our business. So that is the third piece that has been contemplated into our guidance.

最後一點，就像我們所說的那樣，對，我們再次預計下半年的促銷活動會稍微正常化。而現在我們覺得下半年可能會有更高的促銷傾向。同樣，我們什麼也沒看到。它只是對整體經濟形勢保持謹慎，並預測可能發生的事情。正如勞倫所說，我們可能會看到——我們看到投入成本有所增加。我們可能決定不將所有這些成本也轉嫁給我們的運動員，只是試圖在運動員之間做正確的事情以及我們業務的長期潛力。這是我們指導中考慮的第三部分。

Yes. Robby, I just want to build on one thing, which is that our merch margin forecast going forward still assumes, even in the new guidance, that we are going to maintain the majority of our merch margin gains over the past few years.

是的。羅比，我只想建立一件事，即我們未來的商品利潤率預測仍然假設，即使在新的指導下，我們將在過去幾年保持大部分商品利潤率增長。

Our next question comes from Paul Lejuez at Citi.

我們的下一個問題來自花旗的 Paul Lejuez。

Can you talk about private label penetration and performance during the quarter? And then are there any places where private label is not gaining share within your business?

您能談談本季度的自有品牌滲透率和表現嗎？那麼，在您的業務中，是否有任何自有品牌沒有獲得份額的地方？

And then just secondly, if you could just talk about your -- specifically, about apparel and footwear performance and inventory, where you saw strength, where you saw weakness and how you feel about inventories in those categories specifically?

其次，如果你能談談你的——特別是服裝和鞋類的表現和庫存，你在哪裡看到了優勢，你在哪裡看到了劣勢，以及你對這些類別的庫存的看法？

Yes. Paul, our vertical brand did extremely well in Q1. And I would point specifically to how pleased we are with the DSG line, and the fact that, that does provide an opening price point with really wonderful fashion is doing incredibly well, as is our new VRST line and our CALIA line. So really, really pleased. And there's not an area I can point to where I think vertical brands are not gaining share across the business.

是的。 Paul，我們的垂直品牌在第一季度表現非常出色。我要特別指出我們對 DSG 系列的滿意程度，事實上，它確實提供了一個具有真正美妙時尚的開盤價點，而且我們的新 VRST 系列和我們的 CALIA 系列也做得非常好。所以真的，真的很高興。我無法指出我認為垂直品牌沒有在整個業務中獲得份額的領域。

From an apparel and footwear performance standpoint in the quarter, footwear did really, really well for all the reasons that we've been talking about and inventory in that category is good. And again, if we could chase more, we would chase more. On the apparel side, we did have some inventory challenges during the quarter, just making sure that we have the right product, the right season product in stock. But we are planning to buy around anything that came in late, so it's not a markdown risk for us, and we believe that by back-to-school apparel should be getting better.

從本季度服裝和鞋類表現的角度來看，由於我們一直在談論的所有原因，鞋類確實非常非常好，並且該類別的庫存很好。再說一次，如果我們能追得更多，我們就會追得更多。在服裝方面，我們在本季度確實遇到了一些庫存挑戰，只是確保我們有合適的產品、合適的季節產品庫存。但是我們計劃購買任何遲到的東西，所以這對我們來說不是降價風險，我們相信返校服裝應該會變得更好。

Our next question comes from Christopher Horvers at JPMorgan.

我們的下一個問題來自摩根大通的 Christopher Horvers。

So I just want to follow up on the merchandise margin point. If I could characterize what you said, you basically, at this point, you have passed through input cost pressures and have essentially at least maintained your gross margin rate. Going forward, you're saying there could be some input cost absorption where it causes degradation in your merchandise margin.

所以我只想跟進商品保證金點。如果我可以描述你所說的，你基本上，在這一點上，你已經克服了投入成本的壓力，並且基本上至少保持了你的毛利率。展望未來，您說可能會吸收一些投入成本，這會導致您的商品利潤率下降。

So my follow-up is that if you look on a sort of stack basis versus 2019, merchandise margins did decelerate relative to what you experienced in the fourth quarter. Can you talk about what drove that?

所以我的後續行動是，如果你從某種堆棧基礎上看與 2019 年相比，商品利潤率確實相對於你在第四季度的經歷有所減速。你能談談是什麼推動了這一點嗎？

I'll start off and pass it over to Navdeep to answer your last question. I want to be -- I want to clarify one thing. We have passed some input cost pressures on to consumers, specifically in hardlines, a little bit in softlines, but we have not been passing through all of our input cost pressures. We have been benefiting from some of our improved assortment, our mix and the fact that we're not promotional. So our merch margins are not reflecting the -- even though they're so strong, it's not reflecting the fact that we've passed 100% of the cost forward.

我將開始並將其傳遞給 Navdeep 以回答您的最後一個問題。我想成為——我想澄清一件事。我們已經將一些投入成本壓力轉嫁給了消費者，特別是在強硬線，在軟線中也有一點，但我們並沒有把所有投入成本壓力都轉嫁給消費者。我們一直受益於我們改進的分類、組合以及我們不進行促銷的事實。因此，我們的商品利潤率並沒有反映出——即使它們如此強勁，也沒有反映出我們已經將 100% 的成本向前轉移。

Now as we look to the future, if costs continue to increase at an accelerated rate, we may have to start passing higher cost increases on. And at that point, we're going to be down at the really specific data-driven pricing optimized level in terms of what the consumer will bear versus what our margin will absorb. And so I just want to clarify that. And then Navdeep, if you can answer the latter part of the question.

現在展望未來，如果成本繼續以加速的速度增長，我們可能不得不開始將更高的成本增長傳遞下去。到那時，就消費者將承受的價格與我們的利潤將吸收的價格而言，我們將處於真正具體的數據驅動定價優化水平。所以我只想澄清一下。然後是 Navdeep，如果你能回答問題的後半部分。

Yes. Chris, I think there are 2 ways to think about it. Like if you compare it versus -- in fourth quarter of last year, we had called out that we were not promotional. So when you -- and considering how promotional fourth quarter typically is, that benefit was included in our Q4 expectation. We are very pleased with the performance that we have seen from the merchandise margin expansion, especially when you look at it compared to 2019.

是的。克里斯，我認為有兩種思考方式。就像你將它與去年第四季度相比，我們曾呼籲我們沒有促銷。因此，當您考慮到第四季度通常的促銷方式時，該收益已包含在我們的第四季度預期中。我們對商品利潤率擴張的表現感到非常滿意，尤其是與 2019 年相比時。

Like Lauren called out, we expect to be able to maintain a vast majority of the merchandise margin gains that we have seen over the last 2 years into this year, and that has been contemplated in our guidance as well. We do anticipate that the promotional landscape will not remain as benign as it has been for the last few years. But our expectation is also not that the promotional landscape goes back to where it used to be pre-COVID levels. So it's somewhere -- it's going to be landing somewhere between the 2, and that's the piece that we will continue to watch out.

就像 Lauren 所說的那樣，我們希望能夠保持我們在過去兩年中看到的絕大多數商品利潤率增長，這也在我們的指導中得到了考慮。我們確實預計促銷環境不會像過去幾年那樣保持良性。但我們的期望也不是促銷環境回到以前的水平。所以它在某個地方——它將落在 2 之間的某個地方，這是我們將繼續關注的部分。

Okay. So just that -- just so I understand. So then really in the fourth quarter, it was just a lack of normal promotion in the holiday season that caused an extra benefit, where in the first quarter you didn't have sort of that year-to-year effect?

好的。就這樣——我明白了。那麼實際上在第四季度，只是假日季節缺乏正常促銷導致了額外的收益，在第一季度你沒有那種同比效應？

Exactly. Q1 is not as promotional of a quarter as you typically expect, right, compared to fourth quarter. And that's kind of -- we still were able to expand our merchandise margin, even when compared to Q1 of 2021. And when you look at the merchandise margin expansion versus 2019, we are very pleased with the trajectory that we are holding.

確切地。與第四季度相比，第一季度的促銷活動不如您通常預期的那樣。這就是——即使與 2021 年第一季度相比，我們仍然能夠擴大我們的商品利潤率。當您查看與 2019 年相比的商品利潤率擴張時，我們對我們所持有的軌跡感到非常滿意。

Got it. And then my quick follow-up is the 100 bps of -- was that all freight? Obviously, diesel sort of mid-quarter -- to your points in the prepared remarks, diesel really ripped higher, up 70% year-over-year mid-quarter. So is that all that impact? And sort of how are you thinking about modeling that on a go-forward basis?

知道了。然後我的快速跟進是 100 個基點的 - 都是運費嗎？顯然，柴油有點像季中——就你在準備好的評論中的觀點而言，柴油真的漲得更高，在季中同比增長 70%。那麼，這就是所有影響嗎？您如何考慮在前進的基礎上進行建模？

Yes. I would say there are -- the biggest one is freight, no questions about it. There are 2 pieces, fuel is what we called out as well as like when you think of the fixed expenses and the deleverage that you get when you have a negative 8.5% comp, that is also included. But the vast majority, I would say, was driven by the freight pressures that we saw.

是的。我想說有——最大的一個是貨運，沒有問題。有兩部分，燃料是我們所說的，當你想到固定費用和當你有一個負的 8.5% 補償時你得到的去槓桿化時，這也包括在內。但我想說，絕大多數是由我們看到的貨運壓力驅動的。

Maybe -- sorry, I'll add to this, that this was not a surprise to us. When you look at that decline, it was more of a year-over-year. We, like Lauren called out, both these expenses, the wage rate pressure as well as the freight pressure that we saw in Q1 was more in line with our internal expectation, what we thought was there will be some normalization, which we are not expecting right now in the back half.

也許——對不起，我要補充一點，這對我們來說並不意外。當你看到這種下降時，它更像是同比下降。我們，就像 Lauren 所說的那樣，我們在第一季度看到的這些費用、工資率壓力以及運費壓力都更符合我們的內部預期，我們認為會有一些正常化，這是我們沒有預料到的現在在後半部分。

Our next question comes from Warren Cheng at Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Warren Cheng。

I just wanted to ask about your confidence that the majority of the merchandise margin rate expansion is sustainable. So you've talked about some of these tools you've developed to surgically adjust pricing. You've developed some new clearance concepts. Have these tools and concepts been tested in an inventory clearance environment? So as in 1Q, as some of the pandemic winter categories normalize, were there pockets of inventory or situations where you actually had to clear inventories because it hasn't really happened much in the last couple of years? And if so, can you just talk about the -- how some of these tools are changing the realizations that you're getting on these excess inventories?

我只是想問一下你對大部分商品利潤率擴張是可持續的信心。所以你已經談到了你開發的一些工具來調整定價。您開發了一些新的清除概念。這些工具和概念是否在庫存清關環境中進行了測試？因此，在第一季度，隨著一些大流行冬季類別的正常化，是否存在少量庫存或您實際上必須清理庫存的情況，因為在過去幾年中並沒有真正發生太多？如果是這樣，你能談談 - 這些工具中的一些如何改變你對這些過剩庫存的認識？

Yes. Thanks, Warren. We have -- we didn't have a substantial amount of clearance with some of those normalized categories that you're referencing because, as I said before, we are going to buy around healthy, good inventory. So it doesn't -- it's not like we started marking things down. That said, our clearance levels are really, really healthy and improved. And that's partly because of our digital marketing tools and the fact that we can be very surgical. We've moved away from any sort of site-wide and store-wide offers to much more specifically targeted either personalized offers or category-led offers.

是的。謝謝，沃倫。我們有 - 我們對您所引用的一些標準化類別沒有大量的許可，因為正如我之前所說，我們將圍繞健康、良好的庫存進行購買。所以它沒有 - 它不像我們開始標記東西。也就是說，我們的許可水平非常非常健康並且有所提高。這部分是因為我們的數字營銷工具以及我們可以非常外科手術的事實。我們已經從任何類型的站點範圍和商店範圍的優惠轉移到更有針對性的個性化優惠或類別主導的優惠。

And then we are having a lot of success with our Going, Going, Gone! concept, where we can get clearance products, both out of the DICK'S store so that we can bring new fresh product in there, but also in Going, Going, Gone! Once we've consolidated the clearance, we can offer it online easier because we don't have safety stock issues at higher prices without having to let it sort of sit for a long, long time. So generally speaking, our tools are really strong.

然後我們的 Going, Going, Gone 取得了很大的成功！概念，我們可以在哪裡獲得清倉產品，既可以從 DICK'S 商店購買，以便我們可以在那裡帶來新的新鮮產品，也可以在 Going, Going, Gone！一旦我們鞏固了清關，我們就可以更輕鬆地在網上提供它，因為我們沒有以更高的價格出現安全庫存問題，而不必讓它擱置很長時間。所以總的來說，我們的工具非常強大。

Yes. Warren, I'll add one more color to what Lauren said. Back to your initial part of the question, which is the confidence that we can hold on to the vast majorities. Again, if you think back to 2019, hunt's penetration has significantly gone down. The vertical brand penetration has significantly gone up and vertical brands, just to remind, 600 to 800 basis points higher margin rate as well as our approach to marketing has significantly changed. So we no longer are doing big promotions that we used to do back in 2019. And those are all structural capabilities that we have developed over the last 3 years that give us tremendous confidence in addition to kind of the price optimization capabilities we have built.

是的。沃倫，我會為勞倫所說的再添加一種顏色。回到問題的最初部分，即我們可以保持絕大多數人的信心。同樣，如果你回想 2019 年，亨特的滲透率已經顯著下降。垂直品牌滲透率顯著上升，垂直品牌，提醒一下，利潤率提高了 600 到 800 個基點，我們的營銷方式也發生了顯著變化。因此，我們不再像 2019 年那樣進行大型促銷活動。這些都是我們在過去 3 年中開發的結構性能力，除了我們建立的價格優化能力外，還給了我們極大的信心。

That's very helpful. And my follow-up is, are you seeing any evidence of trade down, either the private brands are doing really well? Are you seeing those private brands take share from national brands or new customers coming in? Just any thoughts on trade-down behavior that you might have observed in the first quarter.

這很有幫助。我的後續行動是，您是否看到任何貿易下降的跡象，或者自有品牌的表現真的很好？您是否看到這些自有品牌從民族品牌或新客戶中分一杯羹？只是您可能在第一季度觀察到的有關折價行為的任何想法。

Yes. I don't think that would be an accurate thing to say that we're watching trade down. I actually think in some ways, it's notable that our Gold customer penetration has actually increased, and our sales from that group have been positive, which is evidence, I think, of the fact that people are still spending on categories that are important to them and the fact that our assortment has become so much more premium and attractive and high heat.

是的。我認為說我們正在觀察貿易下降是不准確的。實際上，我認為在某些方面，值得注意的是，我們的黃金客戶滲透率實際上有所增加，我們來自該群體的銷售額一直是積極的，我認為這證明人們仍在對他們很重要的類別進行消費事實上，我們的產品種類已經變得更加優質、有吸引力和高熱量。

At the same time though, at the opening price point, we have -- we've been having success with things like DSG brand, it's accelerated. But I don't think that -- I wouldn't view that as a trade down. I just think it's the right product for this time in people's lives right now. So it's kind of a bifurcated answer.

但與此同時，在開盤價上，我們已經 - 我們在 DSG 品牌等方面取得了成功，它正在加速發展。但我不這麼認為——我不認為這是一種交易。我只是認為它是現在人們生活中這個時代的正確產品。所以這是一個分叉的答案。

Our next question comes from Sam Poser at Williams Trading.

我們的下一個問題來自 Williams Trading 的 Sam Poser。

I have 2. One is on the prior guidance you gave, I mean, you sort of gave real direction on the overall gross margin and SG&A. You said that SG&A would likely lever versus '19 by 150 bps. And I think around 640 bps, the gross margin would end up above '19. So could you update those numbers for us?

我有 2 個。一個是關於你之前給出的指導，我的意思是，你對整體毛利率和 SG&A 給出了真正的指導。你說 SG&A 可能會比 19 年槓桿率提高 150 個基點。而且我認為大約 640 個基點，毛利率最終將高於 19 年。那麼你能為我們更新這些數字嗎？

Yes, Sam. I think our -- I think we have given an appropriate level of guidance today and so I won't go into the details. And maybe if there are modeling questions, we can take that off-line. But I would say that there are three big drivers, just to reiterate, as we talk about the updated guidance, especially when it came to profitability.

是的，山姆。我認為我們 - 我認為我們今天已經給出了適當水平的指導，所以我不會詳細介紹。也許如果有建模問題，我們可以離線處理。但我想說的是，在我們談論更新的指導時，特別是在盈利能力方面，重申一下，有三大驅動因素。

The first and foremost is the currently updated expectations for the top line range. So that's been contemplated. The freight pressures just -- and supply chain pressures, which kind of sit between -- which sits primarily in our gross profit line. And then the wage pressure, which if you think about it, is predominantly in our store labor line and that will be on an SG&A line. So that's being contemplated. Potentially, there are other inflationary pressures as well, but we have taken some actions as part of the revised guidance that are kind of offsetting the pressures that we are seeing in other lines.

首先也是最重要的是當前更新的對頂線範圍的預期。所以這是考慮過的。貨運壓力——以及介於兩者之間的供應鏈壓力——主要存在於我們的毛利潤線中。然後是工資壓力，如果你想一想，主要是在我們的商店勞動力線上，這將在 SG&A 線上。所以這是正在考慮的。潛在地，還有其他通脹壓力，但我們已採取一些行動作為修訂指導的一部分，以抵消我們在其他方面看到的壓力。

And then during the crisis, you guys did a good job of sort of adjusting to better face your consumers and we're able to internally overcome a lot of the macro craziness that's going on. This is a little bit different coming the other way. What are -- I understand you're sort of being prudent about what could happen. But I guess the question I have is what are the -- what are you doing to sort of raise your own game to overcome these macro pressures that you would -- that caused you to adjust your guidance?

然後在危機期間，你們做了很好的調整以更好地面對消費者，我們能夠在內部克服很多正在發生的宏觀瘋狂。這有點不同。是什麼——我知道你對可能發生的事情有點謹慎。但我想我的問題是——你正在做些什麼來提高自己的遊戲水平以克服你會的這些宏觀壓力——導致你調整你的指導？

Yes. Sam, I will agree with you that I think our team did an incredible job managing through crisis, and we found a few things about our business. One is that we have somewhat of a -- maybe an overstatement, but a natural hedge within our business, such that when people stop playing team sports in that case, they still wanted to get outside with their families. And so we saw other businesses increase. And then similarly, when people started to go back onto the field, you see those businesses normalize. So generally speaking, I think we're in a great lane in terms of the products that we carry.

是的。山姆，我同意你的看法，我認為我們的團隊在危機管理方面做得非常出色，我們發現了一些關於我們業務的事情。一個是我們有點——也許是誇大了，但在我們的業務中是一種自然的對沖，這樣當人們在這種情況下停止參加團隊運動時，他們仍然想和家人一起出去玩。因此，我們看到其他業務增加。然後類似地，當人們開始回到該領域時，您會看到這些業務正常化。所以總的來說，我認為就我們所攜帶的產品而言，我們處於一條很好的道路上。

We are being prudent. Looking forward, we just -- the consumer is going through an awful lot right now. And frankly, it's getting more challenging every single day. And so we will work like heck to pull every lever that we have to drive sales and to manage expenses, and you can expect us to do that. But we want to be appropriately cautious, given how rapidly some costs are accelerating and that the consumer is really in a very challenged state right now.

我們是謹慎的。展望未來，我們只是 - 消費者現在正在經歷很多事情。坦率地說，它每天都變得越來越具有挑戰性。因此，我們將竭盡全力推動我們必須推動銷售和管理費用的每一個槓桿，您可以期望我們這樣做。但考慮到一些成本加速增長的速度以及消費者現在確實處於非常具有挑戰性的狀態，我們希望保持適當的謹慎。

Our next question comes from Michael Baker at D.A. Davidson.

我們的下一個問題來自 D.A. 的 Michael Baker。戴維森。

Two questions. One, just on the comp, it's fair to say that the new guidance range down -- I think it was down 2% to down 8%. That does anticipate some change in the consumer environment because you're not seeing it yet. But again, I guess you're saying in your guidance, you are assuming some of it, but the second part of that question is, I presume that you still -- you are still running within your previous guidance of 5% to down 4%, because you're not seeing any change, you're just taking it down based on what you think might -- or being cautious on what could happen. Is that the right interpretation of the change in the top line?

兩個問題。一，就比較而言，可以公平地說新的指導範圍下降了——我認為下降了 2% 到 8%。這確實預示著消費者環境會發生一些變化，因為您還沒有看到它。但同樣，我猜你在你的指導中說，你假設了一些，但這個問題的第二部分是，我認為你仍然——你仍然在你之前的指導範圍內運行 5% 到下降 4 %，因為你沒有看到任何變化，你只是根據你認為可能發生的事情將其刪除——或者對可能發生的事情保持謹慎。這是對收入變化的正確解釋嗎？

Michael, I think you said it perfectly. That is exactly that our new guidance anticipates, that there's a lot of things that we can't control going forward. But we are still operating and expect -- within our guidance range on the comp side is absolutely our old guidance, and we are expecting to -- everything we can control, we feel really, really positive about.

邁克爾，我認為你說得很好。這正是我們的新指南所預期的，未來有很多事情我們無法控制。但我們仍在運營並期待——在我們的指導範圍內，我們的補償方面絕對是我們的舊指導，我們期待——我們可以控制的一切，我們感到非常非常積極。

Okay. Yes. That makes sense. One other question, if I could ask specifically about the golf business. I think you said quickly in there at one point that, that business wasn't as strong. And maybe that was weather related, but you had anticipated that. I guess what's your outlook for the golf business for the year? If there was a weather impact, now that the weather seems to have gotten a little bit better, do we expect that business to get better? Just curious how you're thinking about that category.

好的。是的。那講得通。另一個問題，如果我可以具體詢問高爾夫業務。我想你有一次很快就說，那家企業沒有那麼強大。也許這與天氣有關，但你已經預料到了。我猜你對今年的高爾夫業務有什麼展望？如果有天氣影響，現在天氣似乎變好了一點，我們是否期望業務會好轉？只是好奇你是如何看待這個類別的。

Yes. Golf is a category that we think has tremendous growth in the long term. Rounds played are still really, really strong. The new consumers who have come into the game have not dropped it and are buying new products. So I think there's going to be some normalization, which we expected. The weather shifts don't bother me at all because that happens every year, one either snowing in December or maybe snowing in April, I don't know. But long term, we have a lot of confidence in the golf business.

是的。從長遠來看，高爾夫是我們認為具有巨大增長的一個類別。打的回合仍然非常非常強大。進入遊戲的新消費者並沒有放棄它，並且正在購買新產品。所以我認為會有一些正常化，這是我們預期的。天氣變化根本不會打擾我，因為每年都會發生這種情況，要么在 12 月下雪，要么在 4 月下雪，我不知道。但從長遠來看，我們對高爾夫業務充滿信心。

Makes sense. And I'll just say your Golf Galaxy offering, the club fitting, I took advantage of that, tremendous offer. Appreciate it.

說得通。我只想說你的 Golf Galaxy 產品，球桿配件，我利用了這個，巨大的報價。欣賞它。

Michael, wonderful. Thank you. We appreciate that. Thank you.

邁克爾，太棒了。謝謝你。我們對此表示讚賞。謝謝你。

Our next question comes from John Kernan at Cowen.

我們的下一個問題來自 Cowen 的 John Kernan。

So from what we're hearing from a lot of the softline vendors, apparel footwear vendors, the athletic brands, there's plans for an acceleration and in some cases, a meaningful acceleration in their North American businesses as we get into the back half of the year. Can you talk to that opportunity and what you're seeing in that market? How you're buying to that trend as we get into the back half?

因此，根據我們從許多軟線供應商、服裝鞋類供應商、運動品牌那裡聽到的消息，隨著我們進入後半部分，他們的北美業務計劃加速，在某些情況下，有意義的加速年。你能談談那個機會以及你在那個市場上看到的東西嗎？當我們進入後半部分時，您如何看待這種趨勢？

John, we do see and we guided originally to the fact that we think the year is going to start off -- sequentially accelerate as the year goes on. I mentioned in my remarks that softlines, in particular on the apparel side, have had some supply chain challenges and that we're bullish as we look at more back-to-school in the rest of the year. So I think the consumer is there and the product is good, and we are absolutely buying into these trends.

約翰，我們確實看到並且我們最初認為我們認為今年將開始 - 隨著時間的推移依次加速。我在講話中提到，軟線，特別是在服裝方面，面臨一些供應鏈挑戰，我們看好今年剩下的時間裡會有更多的返校。所以我認為消費者在那裡，產品很好，我們絕對相信這些趨勢。

Got it. And then maybe just on the -- if we look at the high end and the low end of guidance, the down 8% to down 2% and then the $9.15 to $11.70 on EPS, what do you think is the biggest swing factor in the guidance, both from a sales and margin standpoint? What gets you to the high end? And what's the scenario where we're more towards the low end from a macro standpoint? Go ahead.

知道了。然後也許只是——如果我們看一下指導的高端和低端，下降 8% 到下降 2%，然後每股收益從 9.15 美元到 11.70 美元，你認為最大的波動因素是什麼？從銷售和利潤的角度來看？是什麼讓你走向高端？從宏觀角度來看，我們更傾向於低端的情況是什麼？前進。

John, I would say the biggest overriding factor is comp sales. The -- if we continue to see that the consumer is holding up well, and we are not -- and it's not getting impacted by this cumulative impact of inflation, gas prices, commodity prices increasing, if the consumer continues to hold well, that, to me, would be a good indication of how our business will do. And so to me, that is the biggest factor that we are looking into. The cost, yes, we know those will continue to remain elevated. Those have already been incorporated. And so the biggest factor is going to be the top line expectations.

約翰，我想說最大的壓倒一切的因素是銷售。 - 如果我們繼續看到消費者保持良好狀態，而我們沒有 - 並且它不會受到通貨膨脹、天然氣價格、商品價格上漲的累積影響的影響，如果消費者繼續保持良好狀態，那對我來說，這將很好地表明我們的業務將如何運作。所以對我來說，這是我們正在研究的最大因素。成本，是的，我們知道這些將繼續保持高位。這些已經被納入。因此，最大的因素將是對頂線的期望。

Got it. And then maybe just one quick follow-up there. When you look at -- simplistically look at inventory growth on the balance sheet on a dollar basis versus where we are from a top line growth perspective, pretty much across the industry, what gives you such confidence that we're not going to be over-inventoried into the back half of the year right now? And this goes to the vendors and the retailers, inventory is clearly trending above sales trends at this point.

知道了。然後也許只是一個快速的後續行動。當您查看 - 以美元為基礎簡單地查看資產負債表上的庫存增長與我們從頂線增長的角度來看幾乎整個行業的情況，是什麼讓您如此有信心我們不會結束-現在庫存到下半年？這對供應商和零售商來說，此時庫存明顯高於銷售趨勢。

Go ahead, Navdeep.

來吧，納夫迪普。

Yes. I think to me, this is where -- on the confidence that our merchandising team come from and the supply chain team. They have a very good pulse on the business, and we have perfected this art on -- as we called out at the beginning of the last 2 years on the upside, and we are very, very careful about thinking about different scenarios, what are the potential, where are the categories where the business could be impacted. And as you expect, that we are doing all of these internal evaluations a lot, discussing about different scenarios. And to me, the confidence that we have in our team is probably the biggest indicator of the overall confidence that we have on our inventory position. Yes.

是的。我認為，這就是我們的銷售團隊和供應鏈團隊的信心所在。他們對業務有很好的把握，我們已經完善了這門藝術——正如我們在過去兩年開始時所說的那樣，我們在考慮不同的場景時非常非常小心，什麼是潛力，業務可能受到影響的類別在哪裡。正如您所期望的那樣，我們正在進行所有這些內部評估，討論不同的場景。對我來說，我們對團隊的信心可能是我們對庫存狀況總體信心的最大指標。是的。

And I think the fact that wherever we are -- where we are right now, the inventory is not toxic. We don't plan to create any level of risk with toxicity, and we can manage through and buy around any inventory we have. So this does not concern us.

而且我認為無論我們在哪裡 - 我們現在在哪裡，庫存都沒有毒性。我們不打算製造任何級別的毒性風險，我們可以通過我們擁有的任何庫存進行管理和購買。所以這與我們無關。

Our next question comes from Joe Feldman at Telsey Advisory Group LLC.

我們的下一個問題來自 Telsey Advisory Group LLC 的 Joe Feldman。

I want to go back to -- on the gross margin line, I know we've talked about merch margin a lot, but you actually mentioned that occupancy costs deleveraged quite a bit. And I just was curious as to what drove that. Was it simply just the sales? Or are you actually seeing rents going up? Or was there incremental pressure related to the real estate side of things?

我想回到毛利率線上，我知道我們已經談論了很多商品利潤率，但你實際上提到入住成本降低了很多。我只是好奇是什麼推動了這一點。僅僅是銷售嗎？或者你真的看到租金上漲了嗎？或者是否存在與房地產相關的增量壓力？

No, Joe, it's all driven by sales. So -- and at a minus 8.5% comp and 7.5% sales decline, it's all being driven by sales decline. To answer your question, the flexibility that we have in our real estate portfolio and the strength that we have in terms of our financial performance and the strong balance sheet, we actually feel really good about the opportunity that we have to be able to drive more efficiencies in our occupancy costs.

不，喬，這一切都是由銷售驅動的。所以——在負 8.5% 的銷售額和 7.5% 的銷售額下降的情況下，這一切都是由銷售額下降所驅動的。為了回答您的問題，我們在房地產投資組合中擁有的靈活性以及我們在財務業績和強勁的資產負債表方面的實力，我們實際上對我們必須能夠推動更多發展的機會感到非常滿意我們的入住成本的效率。

Got it. That's great to hear. And then kind of a bigger picture question I had was, as you think -- or as we all start to think about what's the right level of operating profit going forward or operating margin, EBIT margin, if you will, I mean, how should we think about that? I think we all agree it's probably not going back to pre-COVID levels. It's also probably not going to be at the peak of last year, 16.5%. But 3 months ago, we all thought it was going to be more like 13-ish, and now we're thinking it's 10-ish. So I'm just kind of curious if you can give us any kind of help around that to think about the future?

知道了。聽到這個消息我很高興。然後我遇到的一個更大的問題是，正如你所想的那樣 - 或者當我們都開始思考未來的營業利潤或營業利潤率，息稅前利潤率，如果你願意的話，我的意思是，應該如何我們考慮一下？我想我們都同意它可能不會回到 COVID 之前的水平。它也可能不會達到去年的峰值，即 16.5%。但 3 個月前，我們都認為它會更像 13-ish，現在我們認為它是 10-ish。所以我只是有點好奇你是否可以在這方面給我們任何幫助來思考未來？

Thank you, everybody. Unfortunately, we lost connection with the speakers. (Operator Instructions)

謝謝大家。不幸的是，我們失去了與演講者的聯繫。 （操作員說明）

(technical difficulty)

（技術難度）

Hello, everybody. We have the connection with the speakers again. Please continue the Q&A.

大家好。我們再次與揚聲器建立聯繫。請繼續問答。

Joe, this is Navdeep. I don't know where we got dropped off. I'll try to probably rephrase the last part of my sentence. Basically, what we are saying is that structurally, there's nothing that we believe is going to hold us back from achieving kind of the profitability levels that we saw in 2021. What -- the thing that is at play is the macroeconomic conditions. So to me, that's the piece that we will continue to look to. And structurally, our merchandising margin is really strong, our e-commerce business continues to be really strong, and it's very profitable. So structurally, when you think about it, we are very optimistic about the long-term sales and the profitability of our business.

喬，這是納夫迪普。我不知道我們在哪裡下車。我會嘗試改寫我句子的最後一部分。基本上，我們所說的是，在結構上，我們認為沒有什麼會阻礙我們實現我們在 2021 年看到的那種盈利水平。什麼 - 正在發揮作用的是宏觀經濟狀況。所以對我來說，這是我們將繼續關注的部分。從結構上講，我們的商品利潤率非常強勁，我們的電子商務業務繼續非常強勁，而且非常有利可圖。所以在結構上，當你考慮它時，我們對長期銷售和我們業務的盈利能力非常樂觀。

This concludes our Q&A session. I would now like to pass back over to Lauren Hobart, President and CEO, for any final remarks.

我們的問答環節到此結束。我現在想請總裁兼首席執行官 Lauren Hobart 發表最後的評論。

Thank you, and thank you all for your interest in DICK'S Sporting Goods. We apologize for some of the technical glitches on this call, but hopefully, you were able to hear the confidence that we have in our business. We look forward to seeing you next quarter. Thank you.

謝謝，也感謝大家對 DICK'S Sporting Goods 的關注。對於本次電話會議中的一些技術故障，我們深表歉意，但希望您能夠聽到我們對我們業務的信心。我們期待在下個季度見到您。謝謝你。

Thank you, everybody, for joining today's call. You may now disconnect.

謝謝大家參加今天的電話會議。您現在可以斷開連接。