Duluth Holdings Inc (DLTH) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to the Duluth Holdings Incorporated first-quarter 2024 conference call. (Operator instructions) Please also note today's event is being recorded.

大家早安，歡迎參加德盧斯控股公司 2024 年第一季電話會議。（操作員說明）也請注意，今天的活動正在錄製中。

At this time, I'd like to turn the floor over to Nitza McKee. Ma'am, please go ahead.

現在，我想把發言權交給 Nitza McKee。女士，請繼續。

Thank you and welcome to today's call to discuss Duluth Trading's first-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.

感謝並歡迎您今天致電討論德盧斯貿易公司第一季的財務業績。我們今天早上發布的收益報告可在我們的投資者關係網站 ir.duluthtrading.com 的新聞稿下查看。

I'm here today with Sam Sato, President and Chief Executive Officer; and Heena Agrawal, Senior Vice President and Chief Financial Officer. On today's call, management will provide prepared remarks and then we will open the call to your questions.

今天我和總裁兼執行長 Sam Sato 一起來到這裡。和 Heena Agrawal，資深副總裁兼財務長。在今天的電話會議上，管理層將提供準備好的發言，然後我們將開始回答您的問題。

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 estimates, 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 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 the date of this conference call and should not be relied upon as predictions of future events.

在我們開始之前，我想提醒您，今天電話會議的評論將包括前瞻性陳述，可以透過使用估計、預期、期望和類似短語等詞語來識別。前瞻性陳述本質上涉及估計、預測、目標、預測和假設，並受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果或結果與前瞻性陳述中表達的結果有重大差異。此類風險和不確定性包括但不限於我們最新的 10-K 表格年度報告和其他適用的 SEC 文件中所述的風險和不確定性。這些前瞻性陳述僅代表本次電話會議的日期，不應被視為對未來事件的預測。

And with that, I'll turn the call over to Sam Sato, President and Chief Executive Officer. Sam?

接下來，我會將電話轉給總裁兼執行長 Sam Sato。薩姆？

Thank you for joining today's call.

感謝您參加今天的電話會議。

Let me begin by stating that despite some key quarter wins, we are not satisfied with our first-quarter results, which fell short of our internal expectations. Our top-line performance at a decline of 5.7% was hampered by challenging traffic and a subpar in-stock position following stronger than expected unit selling late in the fourth quarter. In fact, we entered the first quarter with inventory levels 19% below the prior year. We took swift action to improve our in-stock position in core items, which improved throughout the quarter and into Q2.

首先我要指出的是，儘管取得了一些關鍵的季度勝利，但我們對第一季的業績並不滿意，該業績未達到我們的內部預期。我們的營收業績下降了 5.7%，這是由於客流量挑戰以及第四季度末單位銷售強於預期後庫存狀況低於標準而受到影響。事實上，進入第一季時，我們的庫存水準比去年同期低了 19%。我們迅速採取行動，改善核心商品的庫存狀況，在整個季度和第二季度都有所改善。

Let me highlight a few actions we're focused on to improve our results. We are doubling down on our efforts to further leverage technology to deliver more targeted advertising to drive incremental traffic, both online and in stores. We continue to leverage additional streaming platforms and vendor technologies to hone our marketing efforts and to better target specific audiences and markets. Across our 65-store fleet, we're elevating events to mostly engage with existing and new customers within our local markets.

讓我重點介紹我們為改善結果而重點採取的一些行動。我們正在加倍努力，進一步利用科技提供更有針對性的廣告，以增加線上和商店的流量。我們繼續利用其他串流媒體平台和供應商技術來磨練我們的行銷工作並更好地瞄準特定受眾和市場。在我們的 65 家門市中，我們正在提升活動的水平，以便主要與當地市場的現有客戶和新客戶互動。

For example, during the first quarter, we successfully tested an underwear trade-up event. On the day of the event, store traffic jumped more than 50%, contributing a 120-basis-point benefit for the entire quarter. And more than one-third of the underwear trade-ups were from female shoppers, which remain a key strategic growth opportunity for Duluth. During the quarter, we completed a comprehensive benchmarking study to identify opportunities to improve our operating margin, working capital, and asset efficiency. More to come on this initiative over the coming quarters.

例如，第一季度，我們成功測試了內衣換購活動。活動當天，門市人流激增超過50%，為整個季度貢獻了120個基點的效益。超過三分之一的內衣交易來自女性購物者，這仍然是德盧斯的關鍵策略成長機會。本季度，我們完成了一項全面的基準研究，以確定提高營業利潤、營運資本和資產效率的機會。未來幾個季度，該計劃還將推出更多內容。

And finally, we've engaged a third-party expert to partner with our internal team to conduct an in-depth review of our retail strategy to identify efficiencies and solidify our go-forward plan. As you can see, we're not standing still. We've taken immediate action to improve our near-term performance. We're in the process of identifying opportunities to build on our successes and drive further efficiencies across our operations, and we are controlling what we can control. Although there is much work ahead of us, we have made significant progress on our foundational initiatives aligned with our long-term strategic road map.

最後，我們聘請了一位第三方專家與我們的內部團隊合作，對我們的零售策略進行深入審查，以確定效率並鞏固我們的前進計劃。正如你所看到的，我們並沒有停滯不前。我們已立即採取行動來改善我們的近期業績。我們正在尋找機會，以鞏固我們的成功並進一步提高我們的營運效率，並且我們正在控制我們可以控制的事情。儘管我們還有很多工作要做，但我們在符合長期策略路線圖的基礎措施方面已經取得了重大進展。

Let me highlight a few key wins during the quarter. Our Adairsville unit fulfillment costs were 56% lower compared to the prior year average of the remaining three fulfillment centers, and we processed 60% of total volume in the first quarter through this facility. We are now moving into phase two of evaluating our fulfillment center network footprint.

讓我重點介紹本季的一些關鍵勝利。與其餘三個營運中心去年的平均水準相比，我們的阿代爾斯維爾單位履行成本降低了 56%，並且我們在第一季透過該設施處理了總數量的 60%。我們現在正進入評估我們的履行中心網路足跡的第二階段。

In mid-April, we diversified our carrier base lowering our outbound shipping costs. As we discussed on our last call, we meaningfully advanced our sourcing and product innovation functions. This is a critical strategic unlock for the business, which will allow us to bring to market high-quality, innovative products more frequently, increase our speed to market, and significantly reduce our product costs. I'm pleased to report that this initiative is delivering product cost improvements above our expectations, and we have clear line of sight to continued benefits this year.

4 月中旬，我們實現了承運人基礎多元化，降低了出境運輸成本。正如我們在上次電話會議中所討論的那樣，我們有意義地推進了我們的採購和產品創新職能。這對業務來說是一個關鍵的策略解鎖，這將使我們能夠更頻繁地將高品質的創新產品推向市場，加快上市速度，並顯著降低產品成本。我很高興地向大家報告，這項措施所帶來的產品成本改善超出了我們的預期，而且我們對今年的持續效益有清晰的認識。

We continue to see the positive outcomes from our previous replatforming investments in our Duluth training.com website to the next generation of e-commerce tailored for mobile usability. In the quarter, our mobile penetration continued to grow accounting for over half of our digital sales and more than two-thirds of site visits. We remain focused on enhancing digital accessibility while providing a frictionless shopping experience.

我們繼續看到我們先前對德盧斯 Training.com 網站的平台重組投資到專為行動可用性量身定制的下一代電子商務所取得的積極成果。本季度，我們的行動滲透率持續成長，占我們數位銷售額的一半以上和網站訪問量的三分之二以上。我們仍然專注於增強數位可訪問性，同時提供無摩擦的購物體驗。

Now some product innovation highlights that resonated with consumers. The first layer of business grew 4%, driven by both men and women. We tested photo-ready prints [on books moves] during the holidays, selling out quickly and have expanded it with new prints and more inventory received in April for Father's Day. We shipped the Father's Day three pack to Costco as a test to increase our reach with our target consumer who shops at Costco. We're excited to see what opportunities this test enables moving forward.

現在一些產品的創新亮點引起了消費者的共鳴。在男性和女性的共同推動下，第一層業務成長了 4%。我們在假期期間測試了[在圖書運輸上]的照片打印印刷品，很快就銷售一空，並通過新的印刷品和四月份父親節收到的更多庫存擴大了它的範圍。我們將父親節三包運送到 Costco 作為測試，以擴大我們對在 Costco 購物的目標消費者的影響力。我們很高興看到該測試能夠帶來哪些向前發展的機會。

As I mentioned earlier, we tested a successful underwear trade-up event in April that was extremely well received and drove [120] basis points of traffic to stores for the quarter. Women's first layer grew 8%, serving as an accelerator for the overall franchise. Success in women's first layer was driven by Armachillo, Buck Naked, and Lost Lake.

正如我之前提到的，我們在 4 月測試了一次成功的內衣換購活動，該活動非常受歡迎，並為該季度的商店帶來了 [120] 個基點的客流量。女子第一層成長了 8%，成為整體特許經營的加速器。女子第一層比賽的成功由 Armachillo、Buck Naked 和 Lost Lake 推動。

Drivers with strategic significance include building out the bra business, delivering a 200% increase within Armachillo and representing 45% of that collection for her. And our continued focus on size inclusivity with the launch of Lost Lake Plus, driving 25% of the swim collection for her in the first season. Our DuluthFlex Fire Hose collection grew 1% as our innovation in Fire Hose HD and Fire Host sweat management pants delivered significant volume for the quarter.

具有戰略意義的推動因素包括拓展胸罩業務、使 Armachillo 的業務成長 200%，並為她提供了該系列產品的 45%。我們繼續關注尺寸包容性，推出了 Lost Lake Plus，第一季為她帶來了 25% 的游泳系列產品。我們的 DuluthFlex Fire Hose 系列成長了 1%，因為我們在 Fire Hose HD 和 Fire Host 汗水管理褲方面的創新在本季度實現了顯著的銷量。

Excitingly, we held the Fire Hose HD try-on event in stores, which resulted in 25% of the transactions, including a pair of Fire Hose HD pants. The strength in our women's Heirloom garden collection continues posting a 4% increase for the quarter, driven by overalls in-prints. We continue to build awareness with our female consumer and saw a year-over-year increase in our women's only buyers for the eighth straight quarter.

令人興奮的是，我們在店裡舉辦了Fire Hose HD試穿活動，促成了25%的成交，其中包括一條Fire Hose HD褲子。在印刷工裝褲的推動下，本季女款 Heirloom 花園系列的銷量持續成長 4%。我們繼續提高女性消費者的意識，並且我們的女性買家數量連續第八個季度同比增長。

The Heirloom bib overall consistently ranked as the number one style this quarter and are show us your bibs campaign was supported through social, retail, and print. [It may take] over 550,000 times across Meta and TikTok with bib content seeing the highest engagement rate across our own social channels since the start of the campaign.

Heirloom 圍兜總體上一直被評為本季度第一款式，並向我們展示您的圍兜活動得到了社交、零售和印刷的支持。自活動開始以來，在 Meta 和 TikTok 上[可能需要]超過 550,000 次，圍兜內容在我們自己的社交管道上看到了最高的參與率。

In the latter half of Q4 last year, we expanded our quick drying Dry on the Fly technology into tees and underwear across both men's and women's. Customers are responding favorably to the new fabrications, and these programs are off to a strong start exceeding our expectations thus far.

去年第四季下半年，我們將速乾 Dry on the Fly 技術擴展到男士和女士 T 恤和內衣。客戶對新製造的反應良好，這些項目已經有了一個良好的開端，超出了我們迄今為止的預期。

AKHG fitness was a successful launch in the latter half of Q4 is on track to add approximately 100 basis points of growth to the overall company sales this year. In Q1, this new collection represented 26% of AKHG sales and will continue to be a growth driver as we expand the offering in outdoor recreational fitness.

AKHG Fitness 在第四季下半年成功推出，預計今年公司整體銷售額將成長約 100 個基點。第一季度，這個新系列佔 AKHG 銷售額的 26%，隨著我們擴大戶外休閒健身產品範圍，該系列將繼續成為成長動力。

Successful [prints and colas] drove buzz and full price sales in Q1. Within women's Heirloom bibs, our top three regular price prints were [fur, knowns, and daisy]. We continued our wear collaboration with our men's BBQ shirt featuring Busch Light which was the number one choice with twice the sell-through of the overall style.

成功的[印刷品和可樂]推動了第一季的熱潮和全價銷售。在女士 Heirloom 圍兜中，我們排名前三的正價印花是[毛皮、已知物和雛菊]。我們繼續與男士燒烤襯衫合作，以 Busch Light 為特色，這是第一選擇，銷量是整體款式的兩倍。

In summary, although our first quarter did not meet our internal expectations, we delivered several key wins. We took swift and appropriate near-term actions to improve the trajectory of the business. We are in the process of identifying and actioning opportunities to drive efficiencies across our operations, and our foundational investments are paying off, setting the stage for long-term sustainable, profitable growth. I remain proud of our team's unwavering dedication to operating with excellence, flexibility, and agility, always with our customers at the center of all that we do, celebrating the can-do spirit, enabling anyone and takes on life with their own two hands as our greater purpose.

總而言之，儘管我們的第一季沒有達到我們的內部預期，但我們取得了一些關鍵的勝利。我們採取了迅速而適當的近期行動來改善業務發展軌跡。我們正在尋找並採取行動來提高整個營運效率，我們的基礎投資正在獲得回報，為長期可持續的獲利成長奠定了基礎。我仍然為我們的團隊堅定不移地致力於以卓越、靈活和敏捷的方式運營而感到自豪，始終以客戶為中心，弘揚進取精神，為每個人提供幫助，並用自己的兩隻手來迎接生活我們更大的目標。

Now I'll turn it over to Heena to discuss Q1 financials and our full-year outlook.

現在我將把它交給 Heena 討論第一季的財務狀況和我們的全年展望。

Heena?

希娜？

Thanks, Sam and good morning.

謝謝，山姆，早安。

Let me start by reflecting on my first 90 days with the business. This is a resilient organization. The team has been resolute in taking on the challenge to future-proof the business. I'm encouraged to see meaningful impact some investments in talent and infrastructure to enable the company to capture the next inflection point of growth. I'm impressed by this team that embodies the desire to excel, the dedication, and can-do spirit of the Duluth brand.

首先讓我回顧一下我加入公司的前 90 天。這是一個有彈性的組織。團隊堅定地接受挑戰，使業務面向未來。我很高興看到人才和基礎設施的一些投資產生了有意義的影響，使公司能夠抓住下一個成長轉折點。這支團隊體現了德盧斯品牌追求卓越的願望、奉獻精神和進取精神，給我留下了深刻的印象。

Our strength (inaudible) our brand, our unique and loyal consumer base, our innovative and superior product design, our cutting-edge and engaging storytelling, and the capabilities we have built through key hires, infrastructure, and technology. The opportunity and in turn the significant work ahead of us is to build on this progress, first to unlock the full profit potential of Duluth current business. Next, to strategically deploy capital to unlock growth and whitespace opportunities.

我們的優勢（聽不清楚）我們的品牌、我們獨特而忠誠的消費者基礎、我們創新和卓越的產品設計、我們前沿且引人入勝的故事講述，以及我們透過關鍵員工、基礎設施和技術建立的能力。我們面臨的機會和重要工作就是在這項進展的基礎上再接再厲，首先釋放德盧斯目前業務的全部利潤潛力。接下來，策略性地部署資本以釋放成長和空白機會。

Let me first elaborate on unlocking the full profit potential of Duluth's current business. We are focused on three key areas of opportunities. As Sam mentioned first, an in-depth review of our real estate portfolio strategy and operating productivity. Second, embarking on phase two of our fulfillment center network footprint to maximize productivity and capacity. And third, leveraging the insights from a comprehensive benchmarking study to unlock structural gains in operating margin, working capital, and asset efficiency. As we get deeper into the work behind these three strategic workstreams, we look forward to updating you on our progress and the potential current business unlock.

讓我先詳細闡述如何釋放德盧斯目前業務的全部利潤潛力。我們專注於三個關鍵的機會領域。正如薩姆首先提到的，對我們的房地產投資組合策略和營運生產力進行深入審查。其次，開始實施我們的履行中心網路足跡的第二階段，以最大限度地提高生產力和容量。第三，利用全面基準研究的見解來釋放營業利潤、營運資本和資產效率的結構性收益。隨著我們深入研究這三個策略工作流程背後的工作，我們期待向您通報我們的最新進展和當前潛在的業務解鎖。

Our next lever is the strategic allocation of capital to drive growth in our current channels and capture whitespace opportunities. To drive growth in our current channels, we are focused on consumer acquisition and retention through traffic drivers to our stores and digital channels. Additionally, we continue to leverage our learnings from (inaudible), for example, Costco, as we look to unlock whitespace opportunities. Recognizing there is much work ahead of us, I'm excited to leverage my experience, collaborating with our leadership and teams across the organization to unlock the full potential of our business.

我們的下一個槓桿是資本的策略配置，以推動我們當前通路的成長並抓住空白機會。為了推動我們當前通路的成長，我們專注於透過商店和數位管道的流量驅動來吸引和保留消費者。此外，當我們尋求釋放空白機會時，我們將繼續利用從 Costco 等公司（聽不清楚）學到的知識。認識到我們還有很多工作要做，我很高興能夠利用我的經驗，與整個組織的領導和團隊合作，釋放我們業務的全部潛力。

Moving to our Q1 results. Today, we reported first-quarter 2024 net sales of $116.7 million, adjusted EBITDA of $1.8 million, and an EPS loss of $0.24. Starting with the top line, our Q1 2024 net sales were $116.7 million, down 5.7%, impacted by lower traffic and in-stock levels. This quarter, sales benefited from the Father's Day order shipped to Costco, worth 310 basis points. The women's business declined 3.3%, driven by softness in woven bottoms and No-Yank, partially offset by continued growth in the Heirloom Garden collection, the first layer business and Dry on the Fly collection.

轉向我們的第一季業績。今天，我們報告 2024 年第一季淨銷售額為 1.167 億美元，調整後 EBITDA 為 180 萬美元，每股收益虧損 0.24 美元。從營收開始，受客流量和庫存水準下降的影響，我們 2024 年第一季的淨銷售額為 1.167 億美元，下降 5.7%。本季度，銷售受益於運往 Costco 的父親節訂單，價值 310 個基點。受梭織底褲和 No-Yank 柔軟性的推動，女裝業務下降了 3.3%，但 Heirloom Garden 系列、第一層業務和 Dry on the Fly 系列的持續增長部分抵消了這一影響。

Patterned bibs and accessories drove continued strength in the women's business. The men's apparel business declined 7.1% due to softness in Dry on the Fly bottoms, Longtail, and AKHG. The decline in AKHG was largely driven by a low in-stock position on our number one pant collection. Within men's, we saw strength in the DuluthFlex Fire Hose program, Double Flex denim, and Buck Naked.

帶有圖案的圍兜和配件推動了女裝業務的持續發展。由於 Dry on the Fly 下裝、Longtail 和 AKHG 的疲軟，男裝業務下降了 7.1%。AKHG 的下降主要是由於我們排名第一的褲子系列的庫存量較低所致。在男裝方面，我們看到了 DuluthFlex Fire Hose 計劃、Double Flex denim 和 Buck Naked 的優勢。

From a channel perspective, retail store sales declined 7% as a result of challenging traffic. However, we continue to see healthy shopper conversion. Direct channel saw sales decline of 10%, driven by lower traffic and reduced in-stock levels. Mobile penetration of site visits continued to inch higher up 100 basis points over last year. And mobile sales accounted for 55% of digital sales, reflecting an increase of 300 basis points over last year.

從通路角度來看，由於客流量挑戰，零售店銷售額下降了7%。然而，我們繼續看到健康的購物者轉換。由於流量減少和庫存水準減少，直接通路銷售額下降了 10%。網站訪問的行動滲透率繼續小幅上升，比去年增長了 100 個基點。行動銷售佔數位銷售的55%，較去年成長300個基點。

Moving to gross margin for the first quarter of 2024, our gross margin contracted 20 basis points to 52.8% versus our expectation to see gross margin improvement starting in Q1. While new product cost came in better than expected, we are seeing a delay and impact to gross margin as we sell through older higher-cost inventory. Our AURs increased slightly versus last year, driven by a lower mix of clearance sales from better inventory lifecycle management. Given the better-than-expected product costing we are experiencing, we continue to have line of sight to delivering full-year gross margin expansion of approximately 200 basis points.

談到 2024 年第一季的毛利率，我們的毛利率收縮了 20 個基點，至 52.8%，而我們預計毛利率從第一季開始就會改善。雖然新產品成本好於預期，但由於我們透過舊的成本較高的庫存進行銷售，因此我們看到了延遲和對毛利率的影響。由於更好的庫存生命週期管理帶來的清倉銷售組合減少，我們的 AUR 與去年相比略有增加。鑑於我們正在經歷的產品成本好於預期，我們繼續預期全年毛利率將成長約 200 個基點。

Now onto SG&A. For the first quarter, SG&A increased by 0.6% to $70.6 million and deleveraged by 380 basis points to last year at 60.5% of sales. As guided in the prior call, we expect SG&A to increase mainly driven by higher fixed costs and depreciation from strategic investments, partially offset by improvements in variable cost benefits being realized from these initiatives.

現在討論SG&A。第一季度，SG&A 成長 0.6%，達到 7,060 萬美元，去槓桿化程度較去年降低 380 個基點，佔銷售額的 60.5%。正如先前電話會議的指導，我們預計銷售、管理及行政費用將增加，主要是由於固定成本上升和戰略投資折舊，但這些舉措所實現的可變成本效益的改善部分抵消了這一增長。

For the quarter, advertising expenses grew 4.9%, deleveraging by 110 basis points to 10.3% of sales as we continued to invest behind our brands and support new product innovation. Variable or selling expenses, which include outbound shipping costs as well as labor across our contact center, fulfillment centers, and store fleet continues to improve, leveraging by 130 basis points. We diversified our carrier base, lowering our outbound shipping costs starting mid-April, and continue to realize efficiencies from our Adairsville fulfillment center.

由於我們繼續投資於我們的品牌並支持新產品創新，本季廣告費用增加了 4.9%，去槓桿化了 110 個基點，佔銷售額的 10.3%。變動費用或銷售費用（包括出境運輸成本以及我們的聯絡中心、履行中心和商店車隊的勞動力成本）持續改善，槓桿率提高了 130 個基點。我們實現了承運人基礎的多元化，從 4 月中旬開始降低了出境運輸成本，並繼續提高阿代爾斯維爾履行中心的效率。

Fixed expenses or general and administrative expenses increased 6.2% deleveraging by 400 basis points, primarily from annualizing depreciation and fixed costs from strategic initiatives like the Adairsville investments initiated in Q3 of 2023. Q1 net loss was $7.9 million or minus $0.24 per diluted share compared to a net loss of minus $3.9 million or minus $0.12 per diluted share last year.

固定費用或一般和管理費用增加了 6.2%，去槓桿化了 400 個基點，主要來自於 2023 年第三季啟動的 Adairsville 投資等策略性措施的年化折舊和固定成本。第一季淨虧損為 790 萬美元，即稀釋後每股虧損 0.24 美元，去年淨虧損為-390 萬美元，即稀釋後每股虧損 0.12 美元。

First-quarter adjusted EBITDA was positive $1.8 million. Our balance sheet remains strong with liquidity of $195.8 million. We took on $11 million of outstanding debt on our line of credit as we accelerated inventory receipts in core items into April. And we ended the quarter with $6.8 million of cash and cash equivalents.

第一季調整後 EBITDA 為正 180 萬美元。我們的資產負債表依然強勁，流動性達 1.958 億美元。隨著我們將核心項目的庫存收貨速度加快到 4 月份，我們的信貸額度承擔了 1,100 萬美元的未償債務。本季結束時，我們擁有 680 萬美元的現金和現金等價物。

Inventory balance was down 6% or $8.5 million. Our inventory composition is healthy with 93% in current products and 7% in clearance, flat to prior year. Our capital expenditures were $4.3 million versus $22.8 million in the prior year, primarily used to invest in strategic digital capabilities as per our IT road map.

庫存餘額下降 6%，即 850 萬美元。我們的庫存構成健康，目前產品佔 93%，清倉產品佔 7%，與去年持平。我們的資本支出為 430 萬美元，而前一年為 2,280 萬美元，主要用於根據我們的 IT 路線圖投資策略數位能力。

Now turning to our outlook for fiscal-year 2024. We are updating our full-year guidance to approximately $640 million in net sales, the low end of our previous range. This includes 60 basis points from Costco, Father's Day shipment, and 150 basis points of growth from the 53rd week. We expect the first half to be down mid-to-high single digits. We expect gross margin for the full year to be up approximately 200 basis points, driven by our sourcing and product development initiatives.

現在轉向我們對 2024 財年的展望。我們將全年淨銷售額指引更新為約 6.4 億美元，這是我們先前範圍的下限。其中包括 Costco 的 60 個基點、父親節出貨量以及第 53 週的 150 個基點的增長。我們預計上半年將出現中高個位數下降。在我們的採購和產品開發計劃的推動下，我們預計全年毛利率將增加約 200 個基點。

Gross margin will be flat in the first half and improve in the back half as we sell through older, higher-cost inventory, reiterating the expectation of a further improvement in margin in the out years as we continue to optimize our sourcing. We expect SG&A to deleverage by approximately 100 basis points. Advertising expenses are planned to be in line with sales growth at approximately 11% of sales. Variable or selling expenses will continue to leverage by over 100 basis points, driven by transportation savings from addition of carriers as of mid-April and continuing Adairsville efficiencies.

上半年毛利率將持平，下半年毛利率將有所改善，因為我們透過舊的、成本較高的庫存進行銷售，重申了隨著我們繼續優化採購，未來幾年毛利率將進一步提高的預期。我們預期 SG&A 將去槓桿化約 100 個基點。廣告費用計劃與銷售額成長保持一致，約為銷售額的 11%。由於 4 月中旬新增承運人帶來的運輸節省以及阿代爾斯維爾持續提高的效率，可變費用或銷售費用將繼續增加 100 個基點以上。

Fixed expenses or general and administrative expenses will increase in 2024, deleveraging by over 200 basis points, primarily from annualizing depreciation and fixed costs of strategic initiatives. With that, we are confirming the low end of our prior full year adjusted EBITDA guidance range or approximately $39 million and EPS of negative $0.22. This includes estimated diluted shares of approximately $33 million and a tax rate of 25%. Our capital expenditure spend is on track to be reduced by more than half to approximately $25 million with the primary focus on our strategic technology roadmap.

固定費用或一般及管理費用將在 2024 年增加，去槓桿化超過 200 個基點，主要來自年化折舊和策略措施的固定成本。至此，我們確認了上一全年調整後 EBITDA 指引範圍的下限，約 3,900 萬美元，每股收益為負 0.22 美元。其中包括估計約 3,300 萬美元的稀釋股份和 25% 的稅率。我們的資本支出預計將減少一半以上，達到約 2500 萬美元，主要關注我們的策略技術路線圖。

In closing, we are focused on driving traffic and improved in-stock positions, maximizing return from our foundational investments and rightsizing our cost structure. Our capital expenditures are normalizing, and our liquidity remains strong.

最後，我們的重點是增加流量和改善庫存狀況，最大限度地提高基礎投資的回報並調整我們的成本結構。我們的資本支出正在正常化，流動性依然強勁。

With that, we'll open the call for questions.

至此，我們將開始提問。

Ladies and gentlemen, at this time, I'm showing no questions. I'd like to turn the floor back over to Sam for any closing remarks.

女士們先生們，此時此刻，我沒有提出任何問題。我想請 Sam 發表結束語。

Thank you again for joining this morning's call. I want to reiterate our near-term focus is on improving results and unlocking the full potential of the current business. Although our first quarter did not meet internal expectations, we delivered several key wins. We took swift and appropriate near-term action to improve the trajectory of the business. We're in the process of identifying and actioning opportunity to drive efficiencies across our operations and our foundational investments are paying off setting the stage for long-term sustainable, profitable growth.

再次感謝您參加今天早上的電話會議。我想重申，我們近期的重點是改善業績並釋放當前業務的全部潛力。儘管我們的第一季沒有達到內部預期，但我們取得了一些關鍵的勝利。我們採取了迅速而適當的近期行動來改善業務發展軌跡。我們正在尋找並採取行動，以提高我們整個營運的效率，我們的基礎投資正在獲得回報，為長期可持續的獲利成長奠定了基礎。

Thanks again, and we'll speak to you again during our next quarter's call.

再次感謝，我們將在下個季度的電話會議中再次與您交談。

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

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