Duluth Holdings Inc (DLTH) 2022 Q2 法說會逐字稿

Good morning, and welcome to the Duluth Holdings, Inc. Second Quarter 2022 Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Nitza McKee. Please go ahead.

早安，歡迎參加 Duluth Holdings, Inc. 2022 年第二季電話會議。 （操作說明）請注意，本次會議正在錄音。現在我將會議交給 Nitza McKee，請開始。

Thank you, and welcome to today's call to discuss Duluth Trading's second quarter financial results. Our earnings release, which was issued this morning is available on our Investor Relations website at ir.duluthtrading.com under Press Releases. I am here today with Sam Sato, President and Chief Executive Officer; and Dave Loretta, Chief Financial Officer.

謝謝各位，歡迎參加今天關於 Duluth Trading 第二季財務表現的電話會議。我們今天上午發布的獲利報告可在公司投資者關係網站 ir.duluthtrading.com 的「新聞稿」欄位下查閱。今天與我一同出席會議的還有總裁兼執行長 Sam Sato 和財務長 Dave Loretta。

On today's call, management will provide prepared remarks, and then we will open the call to your questions. Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements, which can be identified by the use of words such as estimate, anticipate, expect and similar phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause the actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, those that are described in our most recent annual report on Form 10-K and other SEC filings as applicable. These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events. And with that, I'll turn the call over to Sam Sato, President and Chief Executive Officer. Sam?

在今天的電話會議上，管理階層將首先發言，之後我們將開放問答環節。在會議開始之前，我想提醒各位，本次電話會議的內容將包含前瞻性陳述，這些陳述通常使用「估計」、「預期」、「期望」等詞語或類似表述。前瞻性陳述本質上涉及估計、預測、目標、預期和假設，並受風險和不確定性因素的影響，這些因素可能導致實際結果與前瞻性陳述中表達的內容有重大差異。此類風險和不確定性因素包括但不限於我們在最新的10-K表格年度報告以及其他適用的美國證券交易委員會（SEC）文件中所述的風險和不確定性因素。這些前瞻性陳述僅代表截至本次電話會議當日的觀點，不應被視為對未來事件的預測。接下來，我將把電話會議交給總裁兼執行長佐藤山（Sam Sato）。佐藤先生？

Thank you, Nitza, and thank you for joining today's call. We're excited to share progress and updates on our key strategic initiatives as we move into the back half of the year and prepare for the fall/winter season. As you recall from the last quarter's earnings call, we recently updated our brand positioning by introducing by Duluth trading and the AKHG sub-brands to our brand platform. We also launched our AKHG women's collection to fill the open space for innovative and technical outdoor clothing designed for women. The brand positioning directly addresses our customers' desire for apparel and gear that meet their active work and outdoor recreational activities while staying true to the Duluth Trading heritage of standing for quality, durability and problem-solving functionality.

謝謝Nitza，也謝謝您參加今天的電話會議。我們很高興與您分享下半年各項關鍵策略措施的進展和最新動態，並為秋冬季做好準備。正如您在上個季度財報電話會議上所了解到的，我們最近更新了品牌定位，將Duluth Trading和AKHG子品牌引入我們的品牌平台。此外，我們還推出了AKHG女裝系列，旨在填補專為女性設計的創新專業戶外服裝的市場空白。此次品牌定位直接滿足了客戶對能夠滿足其工作和戶外休閒活動的服裝和裝備的需求，同時秉承了Duluth Trading一貫的品質、耐用性和實用功能。

The customer response to our brand positioning has been strong and confirms our view of long-term growth potential embedded in our strategic plans. In particular, we see the women's apparel categories across our sub-brands, having outsized expansion opportunities. During the second quarter, women's grew nearly 4% over last year and represented a nearly 30% increase from the pre-pandemic period in 2019. The introduction of the women's AKHG collection was a key driver of this growth in Q2. But also contributing to the multiyear expansion is our core Duluth Garden and Wave Forgers Workwear collections. By focusing on both fit and function, our broad size inclusive options and trusted technical designs continue to build loyal brand consumers.

消費者對我們品牌定位的正面回饋印證了我們策略規劃中蘊含的長期成長潛力。尤其值得一提的是，我們認為旗下所有次品牌的女裝類別都擁有巨大的成長潛力。第二季度，女裝銷售額年增近4%，較2019年疫情前水準成長近30%。 AKHG女裝系列的推出是第二季成長的關鍵驅動力。此外，我們的核心產品Duluth Garden和Wave Forgers Workwear系列也為未來多年的成長做出了貢獻。我們注重合身性和功能性，提供尺寸齊全、功能可靠的服裝，並採用值得信賴的專業技術設計，持續培養忠實的品牌消費者。

Moving to a more balanced assortment across men's and women's, expands our addressable market potential and leverages the technical and logistics investments we're making to support product offerings that appeal to a broader customer base. I'll share more regarding recent product launches and customer insights informing our growth strategy shortly, but first, I'd like to touch on our recent results. Today, we reported second quarter net sales of 141.5 million, net income of 2.4 million and earnings per share of $0.07. While these results fell short of our internal plans as we were not immune to the heightened level of macro uncertainty and inflationary pressures impacting discretionary spending we're encouraged by the healthy momentum in our direct channel, which posted a slight year-over-year increase in the quarter and improved sequentially when compared to the 12% decline in Q1.

轉向更均衡的男裝和女裝產品組合，擴大了我們的潛在市場，並充分利用了我們在技術和物流方面的投資，以支持能夠吸引更廣泛客戶群的產品供應。稍後我將分享更多關於近期產品發布和客戶洞察的信息，這些信息將指導我們的成長策略。但首先，我想談談我們最近的業績。今天，我們公佈了第二季淨銷售額為1.415億美元，淨利潤為240萬美元，每股收益為0.07美元。儘管由於宏觀經濟不確定性加劇和通膨壓力影響了可自由支配支出，這些業績未能達到我們的內部預期，但我們對直銷管道的良好發展勢頭感到鼓舞。該通路本季同比增長略有增長，並且環比改善，彌補了第一季12%的下滑。

Additionally, our cleaner inventory position this year weighed on the top line sales growth with sales of clearance goods down roughly $13 million compared to the second quarter of last year. Excluding clearance goods, net sales in the quarter were up roughly 5% over the last year. While we are seeing some signs of consumer spending softness with store traffic down the prior year and customers' purchase behavior influenced more by promotional events our product selling gross margins were nearly flat the last year and average transaction size for the retail channel also held firm. Additionally, store conversion rates increased the prior year, supporting brand health and strong product acceptance.

此外，今年我們更清倉的庫存狀況對營收成長造成了一定影響，清倉商品銷售額較去年同期下降約1,300萬美元。剔除清倉商品後，本季淨銷售額較去年同期成長約5%。儘管我們看到一些消費者支出疲軟的跡象，例如客流量較去年同期有所下降，且顧客的購買行為更多地受到促銷活動的影響，但我們的產品銷售毛利率與去年同期基本持平，零售通路的平均交易額也保持穩定。此外，門市轉換率較去年同期有所提高，有助於提升品牌形象和增強產品市場接受度。

Dave will share more details on the gross profit margin for the quarter, but nearly all of the 120 basis point decline was attributed to an isolated inventory write-down on goods damaged while in transit. Our overall inventory position is in good shape after shipping delays that impacted last year and the first quarter have mostly subsided. Importantly, aligned with our strategic shift to carry meaningfully lower levels of clearance inventories, our end-of-season clearance represented roughly 8% of total inventory compared to 10% the last year. We are entering the fall selling season clean and well positioned to capture demand.

Dave 將分享更多關於本季毛利率的細節，但近 120 個基點的下降幾乎全部歸因於運輸途中受損貨物的個別庫存減值。去年和第一季受發貨延誤影響的情況已基本緩解，目前我們的整體庫存狀況良好。值得注意的是，為了配合我們大幅降低清倉庫存水準的策略調整，季末清倉庫存約佔總庫存的 8%，而去年同期為 10%。我們以良好的庫存狀態和充足的庫存儲備迎接秋季銷售旺季，並已做好充分準備滿足市場需求。

Having said that, we are certainly adjusting our sales outlook for the back half of the year to reflect an evolving yet uncertain macro and consumer operating environment, but we still do expect to recapture sales that were missed last year because of the significant shipping delays. As a reminder, we ended our second quarter last year with inventory levels down 20% against the prior year in which we missed sales in the second half due to these delays. As we enter the third quarter, our inventories are up 22% versus last year and if you exclude in-transit inventory, our year-over-year inventory is up 13%.

儘管如此，我們確實正在調整下半年的銷售預期，以反映不斷變化且充滿不確定性的宏觀經濟和消費者經營環境，但我們仍然期望能夠彌補去年因嚴重的運輸延誤而錯失的銷售業績。需要指出的是，去年第二季末，我們的庫存水準較上年同期下降了20%，而下半年的銷售業績正是由於這些延誤造成的。進入第三季度，我們的庫存較上年同期增長了22%，如果剔除在途庫存，則同比增長了13%。

Importantly, nearly 90% of the increase in inventory is made up of year-round goods with our total inventory in a much better position and with an improved flow of new seasonal receipts, we believe our better in-stock positions will support overall sales growth. We are managing expenses well in the face of inflationary headwinds and remain committed to the investments we previously discussed in support of our Big Dam blueprint to build out our infrastructure and technical skill sets while also investing in our teams.

值得注意的是，新增庫存中近90%為常年供應商品，我們的整體庫存狀況已大幅改善。隨著季節性新品到貨量的提升，我們相信，更充足的庫存將支撐整體銷售成長。面對通膨壓力，我們有效控制了各項支出，並將繼續致力於此前討論過的各項投資，以支持我們的“大壩計劃”，即在提升基礎設施和技術能力的同時，加大對團隊的投入。

Progress on our logistics expansion and automation project in our new fulfillment center in Adersville, Georgia is going well and on track to be operational mid-2023. We are in the final stages of adding capabilities to speed up inbound and outbound inventory flows in both our Belleville and Dubuque fulfillment centers, which will better support our needs as we enter the all-important peak holiday season. Additionally, we've kicked off a key technology project to upgrade our Microsoft ERP system to the current generation which is an important piece of our technology initiative to advance our internal capabilities and build the foundation to support long-term growth. The new ERP system is expected to go live mid-2023.

我們在喬治亞州阿德斯維爾新建的物流中心的物流擴建和自動化項目進展順利，預計在2023年中期開始營運。我們正在貝爾維爾和迪比克兩個物流中心進行最後階段的升級改造，以加快入庫和出庫的庫存週轉速度，從而更好地滿足即將到來的重要假日銷售旺季的需求。此外，我們已啟動一項關鍵技術項目，將微軟ERP系統升級至最新版本。這是我們技術策略的重要組成部分，旨在提升內部能力，並為長期發展奠定基礎。新的ERP系統預計將於2023年中期正式上線。

Finally, we recently announced the hiring of a new Chief Technology and Logistics Officer, A.J. Sotera. AJ has tremendous experience and expertise across the critical components of our strategy, and we're very excited to have AJ join the Duluth family. We are also committed to building our family of brands with the necessary awareness marketing and customer data insights needed to flex our mix of advertising. The customers' adoption of digital platform and influencer-based purchase behavior has never been greater and is informing our shift to prioritizing social media and paid digital media to gain greater visibility to our sub-brands.

最後，我們近期宣布聘請 A.J. Sotera 擔任首席技術與物流長。 A.J. 在我們策略的關鍵環節擁有豐富的經驗和專業知識，我們非常高興他能加入 Duluth 大家庭。同時，我們也致力於透過必要的品牌認知行銷與顧客數據洞察，打造出我們旗下的品牌家族，進而靈活調整我們的廣告組合。消費者對數位平台和網紅行銷的接受度空前高漲，也促使我們調整策略，優先投入社群媒體和付費數位媒體，以提升旗下子品牌的知名度。

The best return on advertising spend comes from where we're able to leverage data models to identify specific customer segments to focus on purchase frequency within priority geographies. As we further develop our customer insight capabilities, we're refining our understanding of who makes up the most valuable Duluth training customer in terms of their initial purchase, spend frequency and average transaction size. Our data tells us that customers who first purchased with a heavy promotional or clearance discount typically have lower retention rates and lower overall spend. Over the last 2 years, many new buyers made up this profile and account for roughly 20% of our bio files.

廣告支出報酬率最高的途徑在於利用數據模型來辨識特定客戶群，從而在重點區域內提升他們的購買頻率。隨著我們客戶洞察能力的不斷提升，我們正在深入了解哪些客戶構成了德盧斯培訓行業最有價值的客戶群體，包括他們的首次購買行為、消費頻率和平均交易額。數據顯示，首次購買時享受大幅促銷或清倉折扣的客戶，其留存率和整體消費額通常較低。過去兩年，許多新客戶都屬於這群人，約占我們客戶資料的20%。

These buyers are more price-driven and lead to lagging lifetime value. Buyers who first purchased was not on a steep discounted transaction, make up the 80% of our bio file and on average, are worth twice the lifetime value. These customers are our conventional spenders who retain better and spend more than price-driven buyers. While new buyer acquisition is critical to our long-term success, more importantly, is acquiring conventional spend customers, even when that means we may acquire fewer new buyers annually than we have over the last 2 years. Once acquired, our focus on messaging shift to engagement and retention. Our marketing technology capabilities are allowing us to introduce new communication tracks and enhance personalization through triggered and transactional communication.

這些買家更注重價格，導致其終身價值較低。首次購買時並非享有大幅折扣的買家，占我們客戶資料庫的80%，平均而言，他們的終身價值是前者的兩倍。這些客戶是我們的常規消費客戶，他們的留存率更高，消費額也高於價格驅動買家。雖然獲取新客戶對我們的長期成功至關重要，但更重要的是獲取常規消費客戶，即便這意味著我們每年新增客戶數量可能少於過去兩年。一旦獲得客戶，我們的訊息傳遞重點將轉向互動和留存。我們的行銷技術能力使我們能夠引入新的溝通管道，並透過觸發式和交易式溝通來增強個人化體驗。

Understanding the unmet needs, perceptions, attitudes and purchase decisions of our target customers are better informing our differentiated and competitive offerings in-store and online to drive incrementality. Altogether, we've recently mapped a 12-month new customer journey program that begins with digitally-driven prospecting through social media and paid search based on look-alike customer modeling. Next, we focused on an onboarding process designed to introduce the Duluth brand values, share peer reviews and customer picks, prioritize premium brand messaging and encourage the new customers to follow and share our stories.

了解目標客戶的未滿足需求、認知、態度和購買決策，有助於我們更好地制定線上和線下差異化且具競爭力的產品和服務，從而推動業績成長。我們近期制定了一項為期12個月的新客戶旅程計劃，該計劃首先基於相似客戶模型，透過社群媒體和付費搜尋進行數位化客戶開發。接下來，我們著重打造了新客戶引導流程，旨在介紹Duluth品牌價值，分享用戶評價和精選客戶案例，突出高端品牌訊息，並鼓勵新客戶關注和分享我們的故事。

Finally, with data-driven recommendations based on prior customers, we provide personalized offers for a second purchase to nurture loyalty and cross-brand selling. This intentional approach to building customer retention informs our marketing decision and test and learn acumen for ongoing refinement. The early results of these efforts have led to a mid-single-digit increase in new conventional spend buyers. During the second quarter, we realized a high single-digit increase in website visits and nearly 70% of all visits came through mobile devices, generating just over half of total direct net sales.

最後，我們利用基於以往客戶數據驅動的推薦，為二次購買提供個人化優惠，以培養客戶忠誠度並促進跨品牌銷售。這種旨在提升客戶留存率的策略，為我們的行銷決策和持續改進的測試學習提供了基礎。這些努力的初步成果是，新客戶（傳統消費型客戶）數量實現了中等個位數的成長。第二季度，我們的網站訪問量實現了接近兩位數的成長，其中近70%的訪問量來自行動設備，並貢獻了超過一半的直接淨銷售額。

These results continue to give us confidence that investing in a digital-first strategy is the right way to go. The benefit of employing more targeted messaging in more real-time platforms is that our seasonal product categories have greater relevance and appeal during their best-selling time frames. When we can capture business that is by now, where now, we not only meet our customers' real-time demand and fuel brand loyalty, but drive higher sell-throughs at full price, resulting in higher gross profit margins. This is a good seg into recent merchandising performance as we transition between our spring/summer season and our fall/winter season. Our seasonal categories such as gardening, swim, shorts and short-sleeve shirts are continuing to build year-over-year momentum in both the Duluth Workwear and AKHG outdoor recreational collections.

這些成果讓我們更加確信，投資數位化優先策略才是正確的方向。在更多即時平台上採用更具針對性的資訊傳遞方式，能夠使我們的季節性產品類別在銷售旺季更具相關性和吸引力。當我們能夠掌握當下，抓住當下的銷售機會時，我們不僅能夠滿足客戶的即時需求，增強品牌忠誠度，還能提高全價銷售率，從而獲得更高的毛利率。這很好地反映了我們近期的銷售業績，尤其是在春夏系列和秋冬系列交替之際。我們的季節性產品類別，例如園藝、泳裝、短褲和短袖襯衫，在 Duluth Workwear 和 AKHG 戶外休閒系列中，銷量均持續保持同比增長勢頭。

Also, our proprietary fabrications that serve customers' needs in the warmer climates, such as dry on the fly, Armachillo and CoolMax are among the strongest positive growth product sets for us. Included in these product categories are items within our first layer brands such as the Armachillo cooling bra, which has been selling extremely well, along with the overall bra business that grew nearly 60% in the second quarter. Total women's first layer category grew nearly 20% in the quarter with continued strength in our No-Yank Tank collection. From a sub-brand standpoint, AKHG led the pack with total sales growth of 21% in the second quarter, followed by our first layer collection at 2%.

此外，我們專為滿足顧客在溫暖氣候下的需求而研發的布料，例如速乾布料、Armachillo 和 CoolMax，也是我們成長最強勁的產品系列之一。這些產品類別包括我們內衣品牌中的一些產品，例如銷量極佳的 Armachillo 清涼文胸，以及整體胸罩業務在第二季度近 60% 的成長。本季女性內衣總銷量成長近 20%，其中 No-Yank Tank 系列持續保持強勁勢頭。從子品牌來看，AKHG 以 21% 的總銷售額成長領先，其次是我們的內衣系列，成長 2%。

Overall, by Duluth trading was down in the quarter 9%, with the largest impact coming from less clearance sales. The good news is we're already starting to see good demand for new fall products such as flannels, Duluth flex fire hose pants, and footwear items such as our Duluth grindstone work boots and Jackpine hikers. Our fall and winter season is poised for growth with exciting new collaborations that include a sponsorship with the Green Bay Packers on a limited edition Duluth game-day apparel assortment and a partnership with Macio for the introduction of camouflage pattern and highly visible outerwear items for our hunting enthusiasts. We are also expanding one of our best and long-standing men’s program of long-tail tees that will provide a wider assortment of fit, features and colors to further command ownership in the workwear first layer category.

總體而言，Duluth本季交易額下降了9%，其中清倉銷售減少是主要影響因素。好消息是，我們已經開始看到市場對新款秋季產品（例如法蘭絨襯衫、Duluth Flex消防水帶褲以及Duluth Grinderstone工裝靴和Jackpine健行鞋等鞋類產品）的良好需求。隨著一系列令人興奮的新合作，我們的秋冬季產品有望實現成長，其中包括與綠灣包裝工隊合作推出限量版Duluth比賽日服裝系列，以及與Macio合作推出迷彩圖案和高可見度外套，以滿足狩獵愛好者的需求。此外，我們還將擴展我們最受歡迎的男士長尾T卹系列，提供更多款式、功能和顏色選擇，進一步鞏固我們在工作服內層領域的領先地位。

In the women's first layer business, we are introducing new silhouettes of our successful line tamer collection of bras and underwear that feature invisible, bonded strings and supersoft construction providing the ultimate comfort and support our customers are asking for. Lastly, we're excited to share the publication of Duluth Trading's first corporate responsibility report that articulates our commitment to critical aspects of our ESG initiatives. The report showcases where we delivered, how we are progressing and the ways we plan to grow in our commitment to sustainability, being a people-first organization that values diversity and inclusion and practicing good corporate governance. As with any organization, we understand we have work to do and strive for continuous improvement.

在女性內衣領域，我們推出了備受歡迎的Line Tamer系列胸罩和內褲的全新款式，採用隱形粘合肩帶和超柔軟面料，為顧客提供他們夢寐以求的極致舒適度和支撐力。此外，我們很高興地宣布Duluth Trading首份企業社會責任報告正式發布，該報告闡述了我們對ESG（環境、社會和治理）舉措關鍵方面的承諾。報告展示了我們在哪些方面取得了成果，目前進展如何，以及我們計劃如何進一步實踐永續發展承諾，成為一家以人為本、重視多元化和包容性並實踐良好公司治理的企業。與任何組織一樣，我們深知自身仍有許多工作要做，並將持續努力，不斷改進。

With guidance from our ESG Steering Committee and Board of Directors, our approach to reporting is to be straightforward, realistic and not overstate where we are in the process. As we demonstrate in the reports, responsibility goes beyond our own business, and I'm proud of the (inaudible) and of the meaningful progress our team has made. With that, I'll turn it over to Dave to provide more details on our second quarter results and discussion of our back half of the year outlook. Dave?

在ESG指導委員會和董事會的指導下，我們的報告方式力求簡潔明了、務實，不誇大我們目前所處的階段。正如我們在報告中所展示的，責任不僅限於我們自身的業務，我為我們團隊的顯著進展感到自豪。接下來，我將把發言權交給Dave，讓他詳細介紹我們第二季的業績，並探討下半年的展望。 Dave？

Thanks, Sam, and good morning. For the second quarter, we reported net sales of $141.5 million, down 5.1% compared to $149.1 million last year and up 3% compared to the same period in 2020. The decrease in clearance sales between this year and last was roughly $13 million and was the contributing factor in our sales decline year-over-year. Our direct channel sales were up 0.1% from last year, while the retail channel was down 12%, driven by a decline in store traffic, partially offset by an improvement in store conversion. As we shared on our last call, better inventory balances, combined with our new brand positioning and marketing support, drove sales growth in April and during the first 6 weeks of Q2.

謝謝，Sam，早安。第二季度，我們的淨銷售額為1.415億美元，較去年同期的1.491億美元下降5.1%，較2020年同期成長3%。今年與去年相比，清倉銷售額減少了約1,300萬美元，這是我們銷售額年減的主要原因。我們的直銷通路銷售額較去年成長0.1%，而零售通路銷售額下降12%，主要原因是客流量下降，但部分被門市轉換率的提高所抵銷。正如我們在上次電話會議上提到的，庫存狀況的改善，加上我們新的品牌定位和行銷支持，推動了4月份以及第二季度前六週的銷售成長。

However, a slowdown leading into the Father's Day selling period impacted both channels. Our direct channel recovered in July with sales growth of mid-single digits, driven by adjustments made in our digital advertising mix and continued focus on the new brand messaging. Additionally, direct sales and store markets outperformed nonstore markets, with strength coming from both established markets in the Midwest and newer markets in the Southeast and Mountain states. As Sam mentioned, our other strategic objective is to adjust our new customer prospecting to attract conventional spend buyers versus purely price-driven buyers.

然而，父親節銷售旺季前的銷售放緩對兩個管道都造成了影響。我們的直銷管道在7月實現了中等個位數的銷售成長，這得益於我們對數位廣告組合的調整以及對新品牌訊息的持續關注。此外，直銷和實體店市場的表現優於非實體店市場，其中中西部成熟市場以及東南部和山區各州的新興市場均表現強勁。正如Sam所提到的，我們的另一個策略目標是調整新客戶開發策略，以吸引消費習慣傳統的消費者，而非單純的價格驅動型消費者。

Early signs of progress here show a mid-single-digit percent increase in the second quarter in conventional spend buyers. As we continue to strategically utilize deeper customer analytics to inform our media and messaging strategies, we expect our active buyer file will continue to shift slightly younger and will be reflective of customers whose long-term value is tied to our brand propositions. Our second quarter gross profit margin was 53.4% compared to 54.6% last year. This represents a 7.1% decline in gross profit dollars from $81.4 million last year to $75.6 million this year. Of the 120 basis point decline, 110 basis points was related to inventory adjustments, most of which was the result of a onetime inventory write-down on goods that were damaged during transit to our fulfillment center.

初步跡象表明，第二季傳統消費型買家數量實現了中等個位數百分比的成長。隨著我們持續策略性地運用更深入的客戶分析來指導我們的媒體和訊息傳遞策略，我們預期活躍買家群體將繼續略微年輕化，並反映出那些長期價值與我們的品牌主張緊密相關的客戶群。第二季毛利率為53.4%，去年同期為54.6%。這意味著毛利從去年的8,140萬美元下降至今年的7,560萬美元，降幅為7.1%。這120個基點的降幅中，110個基點與庫存調整有關，其中大部分是由於對運往物流中心途中損壞的貨物進行了一次性庫存減值。

These goods were core men's underwear that are on a regular replenishment cycle, and therefore, will not have an impact on sales. The remaining 10 basis point decline in gross profit margin was due to the impact of selling mix between full price, promotional and clearance sales. As we previously noted, our position in clearance goods is less than the prior year, and at the end of Q2 was 8% of total inventory compared to 10% last year. Importantly, as supply chain congestion has eased over the last 6 months, we are in a much better position on core year-round items and are seeing good inflows on our fall/winter seasonal items, giving us the confidence that we'll recapture a portion of the early seasonal demand that was missed last year due to shipping delays.

這些商品是男士核心內衣，屬於常規補貨週期，因此不會對銷售產生影響。毛利率下降10個基點是由於正價、促銷和清倉銷售組合的變化所致。正如我們之前提到的，清倉商品的庫存低於去年同期，第二季末佔總庫存的8%，去年同期為10%。重要的是，過去六個月供應鏈擁堵情況有所緩解，我們核心常年商品的供應狀況已顯著改善，秋冬季季節性商品的到貨情況也良好，這讓我們有信心能夠彌補去年因運輸延誤而錯失的部分早期季節性需求。

Turning to expenses. SG&A for the second quarter increased 5% to $71.7 million compared to $68.3 million last year. As a percentage of net sales, SG&A expense increased to 50.7% compared to 45.8% last year. This included an increase of $700,000 in general and administrative expenses, $2.3 million in advertising and marketing expenses and an increase of $400,000 in selling expenses. Selling expenses as a percentage of net sales increased 100 basis points to 15% compared to 14% last year, driven by the higher hourly wage rates implemented across our store fleet and fulfillment center network in the back half of 2021.

接下來談談費用。第二季銷售、管理及行政費用（SG&A）年增5%，達7,170萬美元，去年同期為6,830萬美元。 SG&A費用佔淨銷售額的比例從去年的45.8%上升至50.7%。這其中包括一般及行政費用增加70萬美元、廣告及行銷費用增加230萬美元、銷售費用增加40萬美元。銷售費用佔淨銷售額的比例從去年的14%上升100個基點至15%，主要原因是我們在2021年下半年提高了門市和配送中心的員工時薪。

Additionally, fuel surcharges on our outbound customer shipments contributed to the selling expense deleverage. We expect to realize a slight deleverage in selling expenses in the third quarter before annualizing the wage rate increases and realizing efficiency gains to offset the higher costs. In terms of the fuel surcharges, we are anticipating the elevated levels will continue throughout the year. Advertising and marketing costs as a percentage of net sales increased 210 basis points to 10.3% compared to 8.2% last year because of our increase in paid digital media advertising as we continue to shift from traditional catalog marketing to brand and product messaging aimed at target customer audiences in the social and search platforms.

此外，我們出境客戶貨物的燃油附加費也導致了銷售費用槓桿率的下降。我們預計，在第三季度，銷售費用槓桿率將略有下降，但在此之前，薪資成長和效率提升將抵消更高的成本。至於燃油附加費，我們預計其高位將持續全年。由於我們增加了付費數位媒體廣告支出，廣告和行銷成本佔淨銷售額的比例從去年的8.2%上升了210個基點，達到10.3%。我們正持續從傳統的目錄行銷轉向在社群和搜尋平台上針對目標客戶群進行品牌和產品訊息推送。

Overall, we expect our advertising and marketing costs will be slightly below last year for the back half of the year, and we will realize leverage of 80 to 100 basis points the last year with all of that improvement coming in the fourth quarter. General and administrative expenses as a percentage of net sales increased 180 basis points to 25.4% compared to 23.6% last year. The $700,000 increase from last year represents personnel and technology costs as well as fixed cost for our Cherry Hill, New Jersey store and Salt Lake City fulfillment center that opened in the back half of last year. We expect a similar deleverage in our third quarter for the same reasons. For the fourth quarter, we expect to realize expense leverage in G&A in connection with anticipated sales growth. As of today, our store count stands at 65 with no planned store openings for the balance of the year.

總體而言，我們預計下半年廣告和行銷成本將略低於去年同期水平，並且由於第四季度業績改善，我們將實現比去年同期水平降低 80 至 100 個基點。一般及行政費用佔淨銷售額的比例較去年同期成長 180 個基點，達到 25.4%，而去年同期為 23.6%。較去年同期增加的 70 萬美元主要包括人員和技術成本，以及去年下半年新開業的位於新澤西州櫻桃山 (Cherry Hill) 的門市和鹽湖城 (Salt Lake City) 物流中心的固定成本。基於同樣的原因，我們預期第三季也將出現類似的去槓桿化。對於第四季度，我們預計將隨著銷售成長而實現一般及行政費用方面的槓桿化。截至目前，我們的門市數量為 65 家，今年剩餘時間內暫無新店開幕計畫。

As we discussed previously, we are evaluating locations for potential store sites in 2023, and we'll share more details once we have more information on the timing. Adjusted EBITDA for the second quarter was $13.2 million, a 38% decrease from last year and 500 basis points of adjusted EBITDA margin contraction. Our net income was $2.4 million or $0.07 per diluted share compared to $0.27 per diluted share reported in the second quarter last year. Moving on to the balance sheet. We ended the quarter with net working capital of $102.4 million, including $15 million in cash and 0 outstanding on our line of credit. Compared to the same period last year, we had $19 million in cash and 0 outstanding on a line. During the second quarter, we took the opportunity at minimal cost and no increase in our borrowing rates to increase and extend our line of credit.

正如我們之前討論過的，我們正在評估2023年潛在門市的選址，一旦掌握更多時間信息，我們將分享更多細節。第二季調整後EBITDA為1,320萬美元，較去年同期下降38%，調整後EBITDA利潤率下降500個基點。我們的淨利為240萬美元，即每股攤薄收益0.07美元，而去年同期為每股攤薄收益0.27美元。接下來是資產負債表。本季末，我們的淨營運資本為1.024億美元，其中包括1500萬美元現金，且無未償還信貸額度。與去年同期相比，我們擁有1,900萬美元現金，且無未償還信貸額度。第二季度，我們抓住機會，以極低的成本且未增加借款利率的方式，提高了信貸額度並延長了期限。

With the amendment completed with our existing bank group, the facility now stands at $200 million in revolver capacity and expires in July of 2027. As of today, we have $5 million outstanding on the line of credit and expect to minimally increase our borrowings during the third and fourth quarters to fund our inventory ramp-up as is typical for our seasonal liquidity needs. We expect the borrowings to be paid down with an excess cash balance by year-end on the balance sheet. Our inventory level is 22% higher than last year at quarter end and is in a healthier position than last year at this time with a lower level of clearance and a higher mix of year-round goods.

與現有銀行集團完成修訂後，該信貸額度目前為2億美元，將於2027年7月到期。截至目前，我們仍有500萬美元未償還，預計在第三季和第四季將略微增加借款，以滿足庫存成長需求，這符合我們季節性流動性需求的慣例。我們預計到年底，資產負債表上的超額現金餘額將用於償還借款。截至季末，我們的庫存水準比去年同期高出22%，由於清倉量減少和常年商品比例增加，我們的庫存狀況比去年同期更為健康。

Our year-round mix drove roughly 90% of the increase. The increase in total inventory units is roughly 19% over the last year, with the delta to our total dollar increase, reflecting higher average costs and a shift in the mix of balances with growth in our AKHG sub-brand. As a reminder, delays on the inbound receipts we experienced last year resulted in an inventory decrease of 20% compared to the prior year.

全年產品組合的調整推動了約90%的成長。總庫存量較上年增長約19%，而總金額的增長幅度則反映了平均成本的上升以及AKHG子品牌成長帶來的庫存結構變化。要注意的是，由於去年入庫延遲，庫存量較前一年下降了20%。

Our capital expenditures year-to-date of $19 million, including the cost of software implementation is in line with our plans. Our outlook for the full year CapEx remains at $40 million and reflects the investments we're making in logistics automation, the expansion of our fulfillment network with a new facility in Adairsville, Georgia and technology upgrades. We now expect free cash flow for 2022 will be flat to slightly positive. Consistent with our big dam blueprint, the investments we're making across the business will facilitate an expanded and more automated distribution capacity, product and brand development capabilities and add to our customer insights and data analytics to better inform our assortment and marketing mix.

今年迄今為止，我們的資本支出為1900萬美元，其中包括軟體實施成本，符合我們的計劃。我們對全年資本支出的預期仍為4000萬美元，這反映了我們在物流自動化、透過在喬治亞州阿代爾斯維爾新建設施來擴展我們的物流網絡以及技術升級方面的投資。我們現在預計2022年的自由現金流將持平或略有成長。與我們宏偉的策略規劃一致，我們在業務各環節的投資將有助於擴大和提升自動化程度，增強產品和品牌開發能力，並增加我們對客戶的洞察和數據分析，從而更好地指導我們的產品組合和行銷策略。

These investments are all focused on being more digitally led as a business and positioning our business to support continued organic growth and consider strategic acquisition opportunities down the road. To summarize our outlook for the third and fourth quarters. We expect sales in our direct channel to be up high single digits in the third and fourth quarters. For retail sales, we expect to be down to prior year mid-single digits in the third and fourth quarters. We expect gross profit margin to be down roughly 120 basis points in the third quarter and down 50 basis points in the fourth quarter with the full year gross profit rate close to flat year-over-year.

這些投資都旨在推動公司業務數位轉型，並為持續的內生成長做好準備，同時考慮未來的策略性收購機會。總結我們對第三季和第四季的展望：我們預計第三季和第四季直銷通路的銷售額將實現接近兩位數的成長。零售通路的銷售額預計在第三季和第四季將與去年同期持平，降幅約為個位數。我們預期第三季毛利率將下降約120個基點，第四季毛利率將下降約50個基點，全年毛利率與去年同期基本持平。

We plan to increase advertising expense in the third quarter by roughly $2 million and decreased in the fourth quarter by roughly $3 million compared to last year. With selling expenses, we expect the third and fourth quarters to be flat to up 30 basis points as a percentage of sales. Overhead expenses in the third quarter will increase as a percentage of sales by roughly 180 basis points and be down 150 to 200 basis points in the fourth quarter relative to last year as we gained leverage on sales growth. We are updating our full year guidance with the net sales of 680 million to 705 million, adjusted EBITDA of $69 million to 73 million and EPS in the range of $0.61 to $0.71.

我們計劃第三季廣告支出較去年同期增加約200萬美元，第四季則減少約300萬美元。銷售費用方面，我們預計第三季和第四季佔銷售額的比例將與去年同期持平或略有成長（約30個基點）。由於銷售成長帶來的利好，第三季管理費用佔銷售額的比例將較去年同期成長約180個基點，而第四季則將下降150至200個基點。我們更新了全年業績預期，預計淨銷售額為6.8億美元至7.05億美元，調整後EBITDA為6,900萬美元至7,300萬美元，每股收益為0.61美元至0.71美元。

In closing, while we recognize the consumer uncertainty has challenged our original business plans for 2022, we remain committed to driving demand and awareness in our multi-brand positioning as well as committed to the capital investments necessary to unlock the company's full value creation potential. Our teams remain focused on what is in our control and making the adjustments needed to navigate a dynamic consumer environment. And with that, we'll open the call for questions.

最後，儘管我們意識到消費者的不確定性為我們的2022年原定業務計劃帶來了挑戰，但我們仍致力於提升多品牌定位的需求和品牌認知度，並將繼續進行必要的資本投資，以充分釋放公司的價值創造潛力。我們的團隊將繼續專注於我們可控的因素，並做出必要的調整以應對瞬息萬變的消費環境。接下來，我們將開放提問環節。

(Operator Instructions) And the first question will be from Jonathan Komp from Robert Baird.

（操作說明）第一個問題將來自 Robert Baird 公司的 Jonathan Komp。

I want to just start on the changes to the guidance for the year. Could you maybe just break out how you've thought about roughly the $50 million reduction in the revenue guidance for the year? And as we think about the plans you just outlined for the second half and the sequential acceleration in both of your channels. Can you just share more how you're thinking about modeling that in light of some of the uncertainties out there?

我想先談談年度業績指引的調整。您能否詳細說明您是如何考慮將年度營收指引下調約5000萬美元的？另外，考慮到您剛才概述的下半年計劃以及兩​​個渠道的逐步加速增長，您能否進一步分享一下，鑑於目前存在的一些不確定因素，您是如何進行建模的？

Yes, Jon, this is Dave. Certainly, the back half of the year, as we look at it, always had a significant opportunity from a year-over-year standpoint given the inventory shortages that we had last year. So despite some of the macro headwinds that we know we're facing, we really feel like we're in a position with the inventory to recapture lost sales that were missed last year, and some of it was in a good part of Q3, where we know we didn't have an inventory and we dialed down marketing in response to that and then continued with a greater delay in inventory in Q4. So that's the primary driver for seeing some of the inflection on sales growth rates heading into the back half of the year.

是的，喬恩，我是戴夫。的確，從我們的角度來看，鑑於去年庫存短缺的情況，下半年一直存在著巨大的年成長機會。因此，儘管我們知道目前面臨一些宏觀經濟的不利因素，但我們仍然覺得，憑藉現有的庫存，我們有能力彌補去年錯失的銷售機會。其中一部分損失發生在第三季的大部分時間裡，當時我們庫存不足，因此我們不得不縮減行銷預算，而第四季庫存的補貨時間又進一步延長。這就是下半年銷售成長率出現轉折點的主要原因。

I'll say quarter-to-date, we're trending similar to the overall Q2 down slightly in aggregate, low single digits, but direct is outperforming retail. And retail has improved relative to where it was at the end of the second quarter. So momentum is improving, and the inventory position is really what's going to be a big driver of that sales growth in addition to putting into place out of the marketing tactics that we held off last year in doing.

就本季至今而言，我們的趨勢與第二季整體情況類似，整體略有下降，降幅在個位數低位，但直銷業務的表現優於零售業務。零售業務也比第二季末有所改善。因此，成長動能正在增強，庫存狀況將成為推動銷售成長的重要因素，此外，我們去年擱置的行銷策略也將逐步落實。

And just as a follow-up, could you maybe share what you're seeing in terms of promotions across the industry and just how you think about competitive promotional intensity impacting your business, especially as you shift your focus to more high-value customers.

另外，能否請您分享您觀察到的整個行業的促銷活動情況，以及您認為激烈的促銷競爭會對您的業務產生怎樣的影響，尤其是在您將重心轉移到高價值客戶方面。

We're really happy with our gross margin performance and despite the write-off that we talked about in the second quarter, our product margins are holding pretty strong, especially if you think about year-to-date, you take out some of the isolated items. We're up significantly year-over-year on gross margins on product selling. So while we're seeing some customers shift to more promotional periods, we're holding our margin rates fairly healthy on that front. Average transaction value in the retail channel is strong in folding where we've been at conversion rates continue to be better than prior years and we're just in a better in-stock position as well throughout this period of time now that the supply chain is released. And I'd say on top of that, we're excited about the women's collections that better a lot of momentum with the launch of AKHG and the base layer categories. So I think competitively, we're feeling like we're in a good spot.

我們對毛利率表現非常滿意。儘管我們在第二季度進行了減損處理，但我們的產品毛利率依然保持強勁，尤其是在剔除部分個別項目的影響後，年初至今的毛利率更是顯著增長。雖然我們看到一些客戶轉向了促銷期，但我們在這一領域的毛利率仍然保持在相當健康的水平。零售通路的平均交易額表現強勁，轉換率也持續優於往年。此外，隨著供應鏈的恢復，我們的庫存狀況也更加充足。更重要的是，我們對女裝系列充滿信心，AKHG 和基礎層服裝系列的推出也帶來了強勁的成長動能。因此，我認為我們在競爭中處於有利地位。

Got it. And just last one for me, bigger picture question on the margin time. The adjusted EBITDA margin for this year, I think now has guided a little bit below 2021. And so just thinking more broadly, longer term, I know you have your long-term targets for 14% to 15% adjusted EBITDA margins. Are those still viable and realistic in this environment or are there changes in the degree of spending or the intensity of some of the investments or other efficiencies you see that still keep those as relevant targets out to 2025, thank you.

明白了。最後一個問題，關於利潤率方面，想了解更宏觀的情況。今年的調整後 EBITDA 利潤率，我認為目前的預期略低於 2021 年。從更宏觀、更長遠的角度來看，我知道你們的長期目標是調整後 EBITDA 利潤率達到 14% 到 15%。在當前環境下，這些目標是否仍然可行且現實？或者說，支出規模、投資力度或其他方面的效率提升是否會影響到這些目標的實現，使其在 2025 年之前仍然有效？謝謝。

Yes, John, we're still seeing a high receptiveness for our products and selling performance. So I don't think that pulls down some of our longer-term goals at this point. We'll see how the back half of the year goes and we'll refresh our long-term goals when we come out of this back half of this year and share a perspective there. But we don't see any underlying signs of not being able to achieve those operating margins in that time frame.

是的，約翰，我們仍然看到市場對我們產品的接受度很高，銷售表現也很好。所以我認為這目前不會影響我們的一些長期目標。我們會觀察下半年的銷售情況，並在下半年結束後重新調整長期目標，屆時會和大家分享我們的看法。但我們目前沒有看到任何跡象表明我們無法在預期的時間範圍內實現這些營業利潤率。

And the next question will be from Jim Duffy from Stifel.

下一個問題將來自 Stifel 公司的 Jim Duffy。

Guys because so much of the earnings power is in the fourth quarter, there's going to be a lot of focus on trajectory, momentum and the assumptions in the guide. I wanted to dig in some about just trends across the quarter and into the 3Q. You spoke about things slowing around Father's Day. Was that true for both retail and direct to consumer or is that more of a retail comment?

各位，由於大部分獲利能力都集中在第四季度，所以大家會非常關注業績軌跡、成長動能以及業績指引中的各項假設。我想深入探討本季以及第三季的趨勢。您提到父親節前後銷售放緩。這種情況在零售和直銷通路都存在嗎？還是說這主要針對零售通路？

Yes, Jim, that was really more of a retail foot traffic situation where Direct was coming out of the first quarter, much stronger and pretty healthy now. Direct, I think, also was impacted a bit by the slowdown but relative to the trend it was on, it was much better. So it's foot traffic to the stores is where we saw the slowdown, materialized the most.

是的，吉姆，這主要體現在零售客流量方面。 Direct在第一季結束後表現強勁，目前狀況良好。我認為Direct也受到了經濟放緩的一些影響，但相對於其整體趨勢而言，情況要好得多。因此，我們看到經濟放緩最明顯的體現是在實體店的客流量方面。

Presumably, maybe some link with gas prices there. I'm curious as gas prices came down into the third quarter did you see any improvement in traffic trends in the retail locations?

或許這與當地的油價有關。我很好奇，隨著第三季油價下降，零售場所的客流量是否有改善？

Yes we have seen since August and through this past month, the trend improved from what it was on, whether that was gas prices or not. But when we do look at our customers, those that live further away from the store is where the impact was most and those that are closer to the stores had a better performance. So I think that's probably a connection to possibly driving in gas prices.

是的，從八月到上個月，我們看到情況有所好轉，無論是否與油價有關。但當我們觀察顧客時，發現居住地離門市較遠的顧客受到的影響最大，而居住地離門市較近的顧客表現較好。所以我認為這可能與油價上漲有關。

And then the guide for the second half, it seems to me imply improving retail productivity in 3Q and 4Q and it sounds like much of that is you believe that you're better in stock and in a better inventory position, and that should help conversion. What's assumed for traffic in this?

那麼，下半年的指導方針似乎暗示著第三季和第四季要提高零售效率，而且聽起來你們認為庫存狀況會更好，這應該有助於提高轉換率。這份指導方針對流量的假設是什麼？

Well, the assumption is that we'd still be down slightly to last year, but we're talking mid-single digits versus the mid-teens that it was in the second quarter. And so continuing at the pace that we're now on right now where retail foot traffic is down, again, mid- to high single digits instead of double digits, and that's what we're going to assume is going to continue through the back half of the year.

嗯，我們預計客流量仍會略低於去年同期水平，但降幅將控制在個位數中段，而第二季則為十幾個百分點。因此，如果零售客流量繼續以目前的速度下降，降幅將再次降至個位數中段到高段，而不是兩位數，我們預計這種情況將持續到下半年。

And then from a tactical standpoint, guys, should store traffic remain challenged or be more difficult than you'd anticipated. What's the philosophy around promotion? Do you see promotion as a tool to drive traffic or given your focus on acquiring consumers at full price, is that something you hope to avoid?

那麼從戰術角度來看，各位，如果客流量持續低迷，甚至比預期更難達到，你們的促銷理念是什麼？你們是把促銷視為引流工具，還是考慮到你們的重點是全價銷售，所以希望避免促銷？

Yes. Jim, at a high level, we want clearance and promotions really to be just a necessary evil, so to speak, and continue to drive greater regular priced business and importantly, drive engagement through our highest value, most loyal consumers. And so while we're watching carefully the competitive landscape, we're watching some of the macroeconomic headwinds like gas prices. We're also going to make sure that we're prudently managing our cost, but also ensuring that we're making the right pricing decisions to help our consumers but also not compromise our longer-term brand position. And so as I said in my prepared remarks, the consumer purchasing behavior has shifted a bit more heavily towards our promotional time frames.

是的，吉姆，從宏觀層面來說，我們希望清倉和促銷活動真正成為一種必要的手段，而不是一種無奈之舉，而是繼續推動正價商品銷售的成長，更重要的是，透過我們最有價值、最忠誠的消費者來提升品牌參與度。因此，在密切關注競爭格局的同時，我們也關註一些宏觀經濟不利因素，例如油價上漲。我們也會確保謹慎控製成本，同時確保做出正確的定價決策，既能幫助消費者，又不會損害我們長期的品牌地位。正如我在準備好的發言稿中所說，消費者的購買行為已經更傾向於我們的促銷活動。

But when you do the math and you look at the reduction of clearance sales at those really low margins, our gross product margins are remaining pretty healthy and near flat for the quarter, and we expect that it will be similar as we get through the back half of the year. So we're going to be really thoughtful and purposeful about our pricing and promotional strategy, more focused around the long term than any near-term benefits that we may get from just taking severe price actions.

但仔細計算一下，考慮到清倉銷售利潤率極低，我們的毛利率仍然相當健康，本季基本上持平，我們預計下半年情況也將如此。因此，我們將更加謹慎、有目的地制定定價和促銷策略，更加重視長期發展，而不是僅僅追求短期內大幅降價帶來的收益。

And the next question is from Dylan Carden with William Blair.

下一個問題來自 Dylan Carden 和 William Blair。

Just continuing on that same thing of the outlook here, and I agree with Jim, that's the crux of this. The deleverage or the reduction of 3 million in marketing spend in the fourth quarter, I'm just trying to track that with having the inventory back in stock and having pulled back in marketing last year. I guess what am I missing? It would stand the reason then that you would increase the dollar amount and I guess what's the nuance in that outlook.

繼續討論前景展望，我同意吉姆的觀點，這才是問題的關鍵。第四季行銷支出減少了300萬美元，我試圖將其與庫存恢復以及去年行銷預算縮減聯繫起來。我想知道我是否遺漏了什麼？如果是這樣，那麼增加金額就說得通了，我想知道這種展望的細微差別是什麼。

Yes. Some of that is really just a shift from the amount of dollars we had allocated last year in response to the inventory delays. So we are increasing our marketing in Q3 knowing that we're in a better position heading into the back half of the year. And so the reduction in Q4 is really just a shift. The minor decline is coming out of some of the TV national brand awareness areas of advertising that's not as efficient in the short term. What is efficient in the short term is the digital spend, and that's where we are increasing quite a bit in both quarters. So digital, social and paid search are where we're seeing the most near-term traction in driving traffic and sales. And so it's more of a mix opportunity in our overall spend to get to those sales.

是的。部分原因在於，我們去年因庫存延遲而調整了預算分配。因此，考慮到下半年情況好轉，我們在第三季增加了行銷投入。所以，第四季的減少其實只是預算調整的結果。略微下降的支出來自一些短期內效果不佳的電視全國品牌推廣廣告。短期內效果顯著的是數位行銷支出，這也是我們在兩個季度都大幅增加的支出方向。數位行銷、社群媒體和付費搜尋是我們看到近期在流量和銷售方面效果最顯著的管道。因此，為了實現銷售目標，我們在整體支出中採取了更多元化的策略。

Got you. But is having the inventory enough here? It seems like we're almost in a similar position that we were in coming into the second quarter where there was anticipation, acceleration in sales predicated on having certain inventory backed up by marketing. And I get all the enhancements to market and I agree with them. But is the guidance now reflective of simply just having core basic items that you didn't have last year and that customer you know is going to show up or is there a certain amount of recovery still necessary in the broader economy to hit the new targets? Does that make sense?

我明白了。但是，目前的庫存量足夠嗎？感覺我們現在的情況和進入第二季時差不多，當時市場預期銷售額會加速成長，而這都建立在一定的庫存和行銷支援之上。我理解所有市場推廣方面的改善措施，也贊同這些措施。但是，現在的業績指引僅僅反映了我們擁有了去年沒有的核心基礎產品，並且知道客戶肯定會來購買，還是說整體經濟還需要一定程度的復甦才能達到新的目標？我這樣說您懂嗎？

Yes, Dylan, this is Sam. I would say a couple of things. One is, when you look at our year-over-year comps, last year, as we analyzed our business, we were pretty short on a big chunk of our core products, and that represents over half of our business. And so the fact that we are going to be or are and will continue to be in a much better in-stock position relative to our needs and certainly, when you look at it year-over-year, that absolutely gives us greater confidence in the back half of the year. We really try not to build much into the improvements in the macro conditions.

是的，迪倫，我是山姆。我想說幾點。首先，如果我們看一下去年同期的數據，就會發現，去年我們分析業務時發現，我們核心產品庫存嚴重短缺，這部分產品占我們業務的一半以上。因此，我們現在以及將來都會保持良好的庫存狀況，這無疑增強了我們對下半年的信心。當然，從年比數據來看，這確實讓我們對下半年的表現更有信心。不過，我們盡量避免過度依賴宏觀經濟環境的改善。

It's so uncertain and so choppy that it wouldn't be prudent of us to do that. And so we really believe that the combination of being in really good stock in our year-round goods, coupled with the early reads we're getting on new products for fall in some big categories for us like Flannels as an example, and then the continued escalation of our women's business continues to give us confidence that the back half, we've got some opportunity for some expansion there relative to not only our current trends, but equally important relative to the year-over-year comparisons.

市場情勢如此不明朗動盪，我們貿然行動並不明智。因此，我們堅信，全年供應充足的庫存，加上我們對秋季新品（例如法蘭絨襯衫等一些重要品類）的早期反饋，以及女裝業務的持續增長，都讓我們有信心在下半年實現業務擴張，這不僅體現在我們目前的趨勢上，更重要的是，也體現在與去年同期相比的增長上。

And then finally here, just in closing, any update on how wholesales performing in this environment?

最後，在結語中，批發業務在這種環境下的表現如何？有什麼最新的消息嗎？

Yes. Well, if specifically, Tractor Supply, our results there, we continue to see positive momentum. In fact, we're in the process now of expanding our test to an additional 70 stores ahead of the peak holiday season. So we'll now be in 180 stores and then online. We recently partnered with them on an offer through their loyalty club membership and that resulted in thousands of new buck-naked customers from Tractor Supply. So we continue to work closely with them. They've been great partners and continue to look forward to expanding that business.

是的。具體來說，就 Tractor Supply 而言，我們在那裡的表現持續向好。事實上，我們正​​在將測試範圍擴大到另外 70 家門市，以迎接即將到來的假期購物季高峰。屆時，我們的產品將涵蓋 180 家門市以及線上通路。我們最近與他們合作，透過他們的會員俱樂部推出了一項優惠活動，為 Tractor Supply 帶來了數千名新客戶。因此，我們將繼續與他們保持密切合作。他們一直是優秀的合作夥伴，我們期待繼續拓展這項業務。

How does that customer match up with that core customer, you're talking to speaking with directly to some of these new engagement type things. Is that a more, I guess, agricultural working-class customer does that line up pretty closely with who you are trying to get on the other side of the retail business?

這個客戶群和你正在直接接觸的核心客戶群，以及你正在嘗試的一些新的互動方式，它們之間有什麼匹配度？這個客戶群更偏向農業工人階級，這和你想要在零售業務另一端吸引的客戶群非常吻合嗎？

Yes, I think at a high level, lines up really well with us. It's a segment of that consumer. So to your point around this agricultural farming industry, that's only a subset of the more high level of consumer we're focused on. But certainly, within demographic, sociographic, economic standings and whatnot, it fits really nicely within where Duluth continues to target our engagement and customer journey strategy.

是的，我認為從宏觀層面來看，這與我們的目標非常契合。這屬於我們目標消費群體的一部分。所以，您提到的農業產業，只是我們關注的高端消費族群的一部分。但可以肯定的是，從人口統計、社會經濟地位等方面來看，它與德盧斯持續推進的客戶互動和客戶旅程策略非常契合。

Ladies and gentlemen, this concludes our question-and-answer session, and thus concludes the recordings second quarter 2022 Conference Call. Thank you very much for joining today's presentation. You may now disconnect.

女士們、先生們，問答環節到此結束，2022年第二季電話會議錄音也到此結束。非常感謝您參加今天的會議。您可以斷開連線了。