Duluth Holdings Inc (DLTH) 2024 Q2 法說會逐字稿

Good morning, and welcome to the Duluth Holdings Inc. second-quarter 2024 conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Nitza McKee.

早安，歡迎參加德盧斯控股公司 2024 年第二季電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給尼扎·麥基 (Nitza McKee)。

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'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.

謝謝您，歡迎參加今天的電話會議，討論德盧斯貿易公司第二季的財務表現。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。今天我和總裁兼執行長 Sam Sato 一起來到這裡。以及資深副總裁兼財務長 Heena Agrawal。在今天的電話會議上，管理層將提供準備好的發言，然後我們將在電話會議中回答您的問題。

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 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 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.

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，這些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之日的情況，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. I'm pleased with our second-quarter performance as we delivered top-line sales growth of 1.8% while expanding our gross margin 90 basis points as we began to see the benefits of our sourcing initiatives.

感謝您參加今天的電話會議。我對我們第二季的業績感到滿意，我們的營收成長了 1.8%，同時毛利率擴大了 90 個基點，因為我們開始看到採購計畫的好處。

The quarter was highlighted by strength in women's and our first layer business as well as strength in our cooling technologies across Armachillo and Dry on the Fly, keeping consumers cool during the hot summer months. We saw a trend line improvement in both conversion and transactions, coupled with healthy increases over last year in both average order value and units per transaction.

本季的亮點是女裝和頭層業務的實力，以及 Armachillo 和 Dry on the Fly 冷卻技術的實力，讓消費者在炎熱的夏季保持涼爽。我們看到轉換率和交易量均呈現趨勢線改善，平均訂單價值和每筆交易數量均較去年健康成長。

Before I review our second-quarter results, I'm excited to update you on a key addition to our leadership team. On August 12, Eli Getson joined Duluth Trading Company as our senior vice president and chief merchandising officer. Eli has more than 20 years of leadership and expertise.

在回顧我們第二季的業績之前，我很高興向您介紹我們領導團隊的重要補充。8 月 12 日，Eli Getson 加入德盧斯貿易公司，擔任我們的高級副總裁兼首席行銷長。Eli 擁有 20 多年的領導經驗和專業知識。

Most recently, Eli served as the senior vice president and general merchandise manager at Academy Sports and Outdoors, where he was responsible for merchandising, strategic planning, and product innovation.

最近，Eli 擔任 Academy Sports and Outdoors 的高級副總裁兼總經理，負責銷售、策略規劃和產品創新。

Eli brings with him a wealth of experience and knowledge and has hit the ground running. We look forward to sharing his insights on future calls. I'm excited to provide an update on the progress we are making on our key strategic initiatives, including product development and sourcing, logistics network optimization, and our retail store portfolio strategy. As mentioned in prior calls, we are seeing the benefits of our sourcing and product innovation efforts.

Eli 帶來了豐富的經驗和知識，並且已經開始起步。我們期待在未來的通話中分享他的見解。我很高興能夠介紹我們在關鍵策略舉措方面取得的最新進展，包括產品開發和採購、物流網絡優化以及我們的零售店組合策略。正如之前的電話中提到的，我們看到了我們的採購和產品創新努力的好處。

This remains a critical strategic unlock for the business, which is allowing us to bring to market high-quality, innovative products more frequently, increase our speed to market, and significantly reduce our product costs. As Heena will discuss, we remain on track to realize significant product cost benefits this year with more to come over the next several years.

這仍然是業務的關鍵策略解鎖，使我們能夠更頻繁地向市場推出高品質的創新產品，加快上市速度，並顯著降低產品成本。正如 Heena 將討論的那樣，我們今年仍有望實現顯著的產品成本效益，並在未來幾年內實現更多。

I shared on the first quarter call that we identified and began Phase 2 of our fulfillment center network plan to maximize productivity and cost. Our highly automated fulfillment center at Adairsville is now efficiently processing nearly 60% of all online orders and replenishment volume.

我在第一季的電話會議上分享了我們確定並開始履行中心網路計劃的第二階段，以最大限度地提高生產力和成本。我們位於阿代爾斯維爾的高度自動化履行中心目前正在有效處理近 60% 的線上訂單和補貨量。

This has increased overall network capacity and enabled us to exit one of our legacy fulfillment centers. With the variable CPU and Adairsville 65% lower than the average legacy facilities, and elimination of fixed costs from the exit, we anticipate annualized run rate savings of approximately $5 million with expected benefits to start late in the fourth quarter of this year.

這增加了整體網路容量，並使我們能夠退出我們的傳統履行中心之一。由於可變CPU 和Adairsville 的成本比傳統設施的平均水平低65%，並且消除了退出時的固定成本，我們預計年化運行率將節省約500 萬美元，預計收益將在今年第四季末開始。

We're making great progress on our retail store portfolio strategy. Stores are a critical component of our omnichannel strategy with nearly two-thirds of new consumers preferring to shop in-store.

我們的零售店投資組合策略正在取得巨大進展。商店是我們全通路策略的重要組成部分，近三分之二的新消費者更喜歡在店內購物。

In addition, our omnichannel consumers spend more on average per order and shop at more than twice the frequency of our single-channel consumers. Stores also offer important services like returns, buy online, pick up in-store, and fulfilling orders, creating a seamless consumer experience.

此外，我們的全通路消費者平均每筆訂單花費更多，購物頻率是單通路消費者的兩倍以上。商店還提供退貨、線上購買、店內取貨和履行訂單等重要服務，創造無縫的消費者體驗。

Combining our digital-first strategy with a relevant and productive store portfolio is critical to winning in an omnichannel ecosystem. The three key pillars of our retail store portfolio strategy include new stores, existing store evaluation and rationalization, and revamping marketing to drive traffic and brand awareness.

將我們的數位優先策略與相關且高效的商店組合相結合對於在全通路生態系統中獲勝至關重要。我們零售店組合策略的三個關鍵支柱包括新店、現有店評估和合理化，以及改善行銷以提高客流量和品牌知名度。

As we look to future new sites, our primary criteria are location, market share opportunity with our target customer, and productivity, format, and assortment will be based on our Store of the Future with equal representation of men and women's products.

當我們展望未來的新網站時，我們的主要標準是地點、與目標客戶的市場份額機會，以及生產力、格式和品種將基於我們的未來商店，男女產品具有平等的代表性。

We've recently signed two LOIs and are targeting new store openings in the second half of next year. In terms of our current fleet, about 25% of our stores are coming up for lease renewals through 2026. We're evaluating these locations for remodel, relocation, or exit.

我們最近簽署了兩份意向書，並計劃在明年下半年開設新店。就我們目前的機隊而言，大約 25% 的商店將在 2026 年之前續租。我們正在評估這些地點的改造、搬遷或退出。

In the short term, we're leveraging our strengths to capture market share and to optimize our marketing spend. Longer term, we're focused on building our existing presence in priority markets and entering new priority markets. We look forward to updating you on our retail store portfolio strategy on future calls. Our key strategies are on track with benefits flowing through.

在短期內，我們正在利用我們的優勢來佔領市場份額並優化我們的行銷支出。從長遠來看，我們的重點是在優先市場建立現有業務並進入新的優先市場。我們期待在未來的電話會議上向您通報我們的零售店投資組合策略的最新情況。我們的關鍵策略正在步入正軌，效益正在不斷顯現。

In addition, we're leveraging the benchmarking study to identify and implement structural improvements to improve the business model with a sense of urgency. Let me now provide key second-quarter highlights on product innovation and consumer and brand marketing successes.

此外，我們正在利用基準研究來確定和實施結構性改進，以緊迫感改進業務模式。現在讓我介紹第二季產品創新以及消費者和品牌行銷成功的主要亮點。

Our level of newness sequentially improved in the second quarter and increased by more than 300 basis points when compared to last year. Some product innovation highlights that resonated with consumers include our women's business grew nearly 6% this quarter with positive results across both brands, particularly in Duluth.

第二季度我們的新鮮度連續提高，與去年相比增加了 300 多個基點。一些引起消費者共鳴的產品創新亮點包括我們的女裝業務本季成長了近 6%，兩個品牌都取得了積極的成果，尤其是在德盧斯。

Growth was largely driven by strength in the women's first-layer business, which grew by 22%. We continue to see success across our Armachillo, Buck Naked, and Dry on the Fly collections and women's bras flourished with a 20% increase driven by the popularity of our TeeLUXE bra as well as plus sizes.

成長主要是由女性第一層業務的實力推動的，該業務成長了 22%。我們的 Armachillo、Buck Naked 和 Dry on the Fly 系列繼續取得成功，而在我們的 TeeLUXE 胸罩以及加大尺寸的受歡迎程度的推動下，女士胸罩的銷量增長了 20%。

Additionally, our Heirloom Garden collection continues to be a favorite for her as evidenced by growth of 18% this quarter, bolstered by a variety of new prints. In our men's business, the Duluth brand delivered growth of 1% this quarter.

此外，我們的 Heirloom Garden 系列仍然是她的最愛，在各種新印花的推動下，本季成長了 18%。在我們的男裝業務中，德盧斯品牌本季實現了 1% 的成長。

The men's Armachillo collection led the way with a strong 10% increase while Woven Short saw an 8% uplift driven by the success of the DuluthFlex Fire Hose Sweat Management and Dry on the Fly lines. These collections were all haloed by our cooling technology focus that ran for the majority of June and July.

男士 Armachillo 系列以 10% 的強勁增長領跑，而梭織短褲則因 DuluthFlex Fire Hose Sweat Management 和 Dry on the Fly 系列的成功而增長了 8%。這些系列都因我們在 6 月和 7 月的大部分時間裡對冷卻技術的關注而受到關注。

Our Double Flex Denim collection also performed well with a growth of 3%. Our focus on expanding the woven shirt category resulted in growth of more than 40%, driven by strength in barbecue shirts and our Wrinklefighter collection.

我們的 Double Flex Denim 系列也表現出色，成長了 3%。在燒烤襯衫和 Wrinklefighter 系列的推動下，我們專注於擴大梭織襯衫類別，實現了 40% 以上的成長。

Within AKHG, we saw double-digit growth in our women's Lost Lake collection as well as renew bamboo across both men's and women's. With regard to our recently launched Fitness collection, we remain encouraged by its performance in the first half.

在 AKHG 中，我們的 Lost Lake 女裝系列實現了兩位數的增長，男裝和女裝的竹子系列也得到了更新。至於我們最近推出的健身系列，我們對其上半年的表現仍然感到鼓舞。

And as previously stated, is on track to be a meaningful part of our overall AKHG business this year. As part of our Hero underwear collection, we launched Bullpen 3D in July, an enhancement to our Bullpen technology that provides even more support and lift while reducing chasing and pinching.

如前所述，該業務有望成為我們今年 AKHG 整體業務的重要組成部分。作為 Hero 內衣系列的一部分，我們在 7 月推出了 Bullpen 3D，這是對 Bullpen 技術的增強，可提供更多支撐和提升力，同時減少追逐和擠壓。

In early August, we introduced souped-up sweats to lose take on a better basic, which features a heftier 14-ounce brush cotton for added softness and warmth. And later this month, we're excited to launch two new Duluth footwear collections, founders and ground effect, which will expand our work and casual offerings.

8 月初，我們推出了增強型汗衫，以取代更好的基本款，其中採用了更厚的 14 盎司刷棉，增加了柔軟度和溫暖度。本月晚些時候，我們很高興推出兩個新的德盧斯鞋類系列：Founders 和 Ground Effect，這將擴大我們的工作和休閒產品範圍。

Looking ahead, we're introducing several exciting collaborations and new prints. In the coming weeks, we will continue our beer underwear collaborations with the launch of hands alongside a Pheasants Forever collab featuring a new on-brand underwear print.

展望未來，我們將推出幾項令人興奮的合作和新印花。在接下來的幾週內，我們將繼續與啤酒內衣合作，推出 Hands 以及 Pheasants Forever 合作款，推出全新品牌內衣印花。

Building on the success of the Busch BBQ shirt from earlier this year, we're launching a Busch hoodie, t-shirt, and socks in October. We're adding new prints to our popular Heirloom Garden collection that will continue to drive excitement throughout the fall harvest season.

基於今年早些時候 Busch BBQ 襯衫的成功，我們將於 10 月推出 Busch 連帽衫、T 恤和襪子。我們正在為廣受歡迎的 Heirloom Garden 系列添加新印花，這將在整個秋季收穫季節繼續帶來興奮感。

Our strategic shift toward targeting younger consumers continues to gain momentum. New consumers are five years younger than existing consumers with the average age trending younger for the past several years.

我們面向年輕消費者的策略轉變持續獲得動力。新消費者比現有消費者年輕五歲，過去幾年平均年齡呈現年輕化趨勢。

Further, when looking at our active customer file for the quarter, the biggest gains in both customer count and sales growth came from customers below 50 years old and importantly, women's buyers increase in penetration within our target customer.

此外，在查看本季的活躍客戶檔案時，客戶數量和銷售成長的最大成長來自 50 歲以下的客戶，重要的是，女性買家在我們目標客戶中的滲透率增加。

We're building on the success with our mobile-first strategy as mobile penetration continues to grow as a percentage of total, both across visits and sales on our website.

我們正在透過行動優先策略取得成功，因為行動滲透率在我們網站的訪問量和銷售量中所佔的百分比持續增長。

In the quarter, 70% of visits and 57% of sales came through a mobile device, reflecting increases of 100 basis points and 230 basis points, respectively. Further, conversion on mobile devices improved 10 basis points, and we saw a sales increase of nearly 10% in the quarter.

本季度，70% 的訪問量和 57% 的銷售量來自行動裝置，分別成長了 100 個基點和 230 個基點。此外，行動裝置上的轉換率提高了 10 個基點，本季銷售額成長了近 10%。

On the marketing front, in the second quarter, we successfully focused our paid media on brand awareness, driving higher orders, conversion, and average order value. This is the first time we invested in Amazon Prime Video for Mother's Day and Father's Day, targeting new buyers in the 40- to 50-year-old cohort.

在行銷方面，第二季度，我們成功地將付費媒體重點放在品牌知名度上，推動了更高的訂單、轉換率和平均訂單價值。這是我們首次針對母親節和父親節投資 Amazon Prime Video，目標客戶為 40 至 50 歲的新買家。

We continue to grow our influencer program and launch targeted social and search tactics to drive consumer engagement, resulting in improved traffic trends. Our email optimization drove 10% higher traffic sequentially versus the prior quarter.

我們繼續發展影響者計劃，並推出有針對性的社交和搜尋策略，以推動消費者參與，從而改善流量趨勢。與上一季相比，我們的電子郵件優化使流量連續增加了 10%。

We have exciting marketing campaigns and events planned for the second half of the year. On August 10th, we hosted our second in-store underwear trade-up event with much fanfare. The event was even more successful than the April event as we not only experienced an increase in in-store traffic but the brand building and awareness also drove higher traffic online.

我們計劃在下半年舉辦令人興奮的行銷活動和活動。8月10日，我們大張旗鼓地舉辦了第二屆店內內衣換購活動。這次活動比四月份的活動更加成功，我們不僅看到了店內客流量的增加，而且品牌建設和知名度也帶動了網上客流量的增加。

We are also pleased to see an increase in the proportion of women participating in the underwear trade ups a strategic consumer target as we continue to grow our women's business.

我們也很高興地看到，隨著我們繼續發展女性業務，參與內衣貿易的女性比例增加，這成為了策略消費者目標。

We're thrilled to be partnering again with Yellowstone, which returns this November. We've planned some exciting new created to air during the premiere episode and just in time for the holiday selling season. The creative will include a new brand spot as well as a custom vignette featuring a Yellowstone cast member.

我們很高興能再次與黃石公園合作，黃石公園將於今年 11 月回歸。我們計劃在首播期間播出一些令人興奮的新作品，並正好趕上假日銷售季節。該創意將包括一個新的品牌廣告以及一個以黃石公園演員為特色的客製化小插圖。

As we move into the back half of the year, we'll be leaning further into audio media with several podcasts as well as streaming media with Amazon Prime, Max, and Hulu.

進入今年下半年，我們將進一步關注音訊媒體（包括多個播客）以及串流媒體（包括 Amazon Prime、Max 和 Hulu）。

Collectively, these networks reached nearly 80% of our target 40- to 50-year-old consumer and more than 70% of existing Duluth buyers. In summary, we returned the business to top-line growth and expanded gross margin. Importantly, we're realizing benefits from our long-term strategic initiatives, including logistics and supply chain, product development and sourcing, and our digital mobile-first efforts. We filled an important merchandising leadership role.

總的來說，這些網路覆蓋了我們近 80% 的 40 至 50 歲目標消費者以及超過 70% 的現有德盧斯買家。總而言之，我們使業務恢復了營收成長並擴大了毛利率。重要的是，我們正在從長期策略舉措中獲益，包括物流和供應鏈、產品開發和採購，以及數位移動優先的努力。我們扮演了重要的銷售領導角色。

We're delivering a higher level of product newness and innovation, which is resonating with both existing and new customers. We're taking swift action on structural initiatives like Phase 2 of our fulfillment center network restructuring plan, and we've made great progress on our retail store portfolio strategy. We ended the quarter in a strong financial position. During the quarter, we paid off a $11 million of outstanding debt on our line of credit, leaving us debt-free.

我們正在提供更高水準的產品新穎性和創新性，這引起了現有客戶和新客戶的共鳴。我們正在迅速採取結構性舉措，例如我們的履行中心網路重組計劃的第二階段，並且我們在零售店組合策略方面取得了巨大進展。本季結束時，我們的財務狀況良好。本季度，我們還清了信用額度上 1,100 萬美元的未償債務，使我們擺脫了債務。

Our total liquidity stood at $210 million, and our ending cash balance was approximately $10 million. We're leveraging and benefiting from Heena's deep experience, expertise, and leadership in identifying and driving structural improvements and strategic priorities with financial discipline.

我們的總流動資金為 2.1 億美元，期末現金餘額約為 1,000 萬美元。我們正在利用並受益於 Heena 在確定和推動財務紀律的結構改進和策略優先事項方面的豐富經驗、專業知識和領導力。

Our can-do spirit continues to fuel all that we do. I'm incredibly proud of our team's hard work in what remains a dynamic consumer environment, and I look forward to building upon our many successes.

我們的進取精神繼續為我們所做的一切提供動力。我對我們的團隊在充滿活力的消費環境中的辛勤工作感到無比自豪，我期待著在我們取得的眾多成功的基礎上再接再厲。

Now I'll turn the call over to Heena to discuss Q2 financials and our full-year outlook.

現在我將把電話轉給 Heena，討論第二季的財務狀況和我們的全年展望。

Thanks, Sam, and good morning. Echoing Sam's comments I am proud of the team for delivering top-line sales growth, coupled with gross margin expansion this quarter in what remains a resilient and value-seeking consumer environment.

謝謝，山姆，早安。與 Sam 的評論相呼應，我為團隊在保持彈性和追求價值的消費者環境中實現頂線銷售增長以及本季度毛利率的增長感到自豪。

We not only successfully returned the business to growth with expanding gross margins, but also took important steps toward improving the structural aspects of our business model.

我們不僅成功地使業務恢復成長，毛利率不斷擴大，而且還採取了重要步驟來改善我們業務模式的結構。

As I stated on our first call, our primary focus is to unlock the full profit potential of the enterprise and to strategically deploy capital to unlock growth and white space opportunities, realizing savings from Phase 2 of the fulfillment center optimization, evaluating the existing store portfolio to increase productivity and profitability and allocating capital to new stores are key steps toward making structural changes to drive sustainable, profitable growth.

正如我在第一次電話會議上所說，我們的主要重點是釋放企業的全部利潤潛力，並策略性地部署資本以釋放成長和空白機會，實現營運中心優化第二階段的節省，評估現有商店組合提高生產力和盈利能力以及向新店分配資金是進行結構性變革以推動可持續盈利增長的關鍵步驟。

As Sam mentioned, we started phase 2 of our fulfillment center network to maximize productivity and capacity. We are leveraging our most efficient and cost-effective Adairsville fulfillment center for a planned exit out of our Dubuque, Iowa facility by the end of October.

正如 Sam 所提到的，我們啟動了履行中心網路的第二階段，以最大限度地提高生產力和容量。我們正在利用我們最高效、最具成本效益的阿代爾斯維爾履行中心，計劃於 10 月底退出愛荷華州迪比克工廠。

This will incur restructuring expenses of $7.4 million with $4.4 million in cash and $3 million in write-offs. The $7.4 million in restructuring expenses will be spread between 2 quarters with $1.6 million recognized in Q2 and $5.8 million in Q3 this year.

這將產生 740 萬美元的重組費用，其中包括 440 萬美元的現金和 300 萬美元的沖銷。740 萬美元的重組費用將分攤到兩個季度，其中今年第二季確認 160 萬美元，第三季確認 580 萬美元。

We expect to begin realizing savings late in Q4 for a full-year annualized run rate savings of $5 million. Adding more color to the progress on our retail store portfolio strategy that Sam spoke about earlier. We have identified priority markets and are on track to open two new sites in the back half of 2025. As it relates to our existing fleet, 15 stores or almost 25% of our current store portfolio are coming up for renewal by 2026.

我們預計在第四季末開始實現節省，全年年化運行率節省 500 萬美元。為 Sam 先前談到的零售店投資組合策略的進展增添更多色彩。我們已經確定了優先市場，並預計在 2025 年下半年開設兩個新站點。由於與我們現有的店群相關，到 2026 年，我們將有 15 家商店（占我們目前商店組合的近 25%）進行更新。

We are actively evaluating options including remodel, relocate, or exit to enhance the productivity and profitability of our portfolio. We are revamping our store marketing efforts to include local advertising, experiential events and targeted digital marketing to drive traffic and brand and store awareness in priority markets starting this fall. More to come on the glide path of our strategic initiatives and structural improvements to the business model in future calls. Now speaking to our Q2 results.

我們正在積極評估包括改造、搬遷或退出在內的選項，以提高我們投資組合的生產力和獲利能力。我們正在改善商店行銷工作，包括本地廣告、體驗式活動和有針對性的數位行銷，以從今年秋季開始提高優先市場的流量以及品牌和商店知名度。在未來的電話會議中，我們的策略舉措和業務模式的結構改進將會有更多進展。現在談談我們第二季的業績。

Today, we reported second-quarter 2024 net sales of $141.6 million, up 1.8% with gross margin expansion of 90 basis points versus last year to 52.3%. Our reported EPS loss is $0.11 and adjusted EPS loss is $0.02 favorable to last year by $0.04.

今天，我們報告 2024 年第二季淨銷售額為 1.416 億美元，成長 1.8%，毛利率較去年增長 90 個基點，達到 52.3%。我們報告的 EPS 損失為 0.11 美元，調整後的 EPS 損失為 0.02 美元，比去年有利 0.04 美元。

Adjustments to EPS include $1.6 million in restructuring charges and a onetime sales tax contingency of $2.4 million. Adjusted EBITDA for the quarter was $10.6 million at 7.5% of net sales, up $2 million or 23.9% versus last year.

EPS 調整包括 160 萬美元的重組費用和 240 萬美元的一次性銷售稅意外費用。本季調整後 EBITDA 為 1,060 萬美元，佔淨銷售額的 7.5%，比去年增加 200 萬美元，即 23.9%。

Starting with our top line. Our Q2 2024 net sales growth of 1.8% to $141.6 million was fueled by strong growth in the average order value driven by higher units per transaction. All months of the quarter were positive, with June representing the strongest growth contributor. Shopper conversion increased slightly over the prior year and remains strong across both our direct and retail channels.

從我們的頂線開始。每筆交易數量增加推動平均訂單價值強勁成長，推動 2024 年第二季淨銷售額成長 1.8%，達到 1.416 億美元。本季所有月份均呈現正向成長態勢，其中 6 月的成長貢獻最為強勁。購物者轉換率比前一年略有增加，並且在我們的直營和零售通路中仍然保持強勁。

Our women's business posted strong quarter growth of 5.8%, driven by strength in the first-layer business. Men's trend improved sequentially to almost flat year over year, driven by strength in Armachillo and the Double Flex Denim collection.

在第一層業務實力的推動下，我們的女裝業務季度強勁成長 5.8%。在 Armachillo 和 Double Flex Denim 系列的推動下，男性趨勢逐年改善，與去年同期幾乎持平。

From a channel perspective, both direct and retail channels saw improved sales versus prior quarter. Retail store sales declined 4.4% as traffic trends improved sequentially, declining 4% versus 7% in the prior quarter.

從通路角度來看，直營通路和零售通路的銷售額均較上一季改善。由於客流量趨勢較上季改善，零售店銷售額下降 4.4%，與上一季的 7% 相比下降了 4%。

Direct channel sales grew 5.6%, a significant reversal from Q1, benefiting from double-digit growth in units per transaction. In addition, mobile penetration of site visits and sales continues to increase over last year. Moving to gross margin. For the second quarter, our gross margin expanded 90 basis points to 52.3%, driven by improved product cost from our direct-to-factory sourcing initiatives.

直接通路銷售額成長 5.6%，與第一季相比出現顯著逆轉，受益於每筆交易數量的兩位數成長。此外，網站訪問和銷售的行動滲透率比去年繼續增加。轉向毛利率。第二季度，我們的毛利率成長了 90 個基點，達到 52.3%，這得益於我們的直接工廠採購計畫提高了產品成本。

We have now sold through the older higher-cost inventory and our gross margin year to date is 30 basis points higher than last year. Partially offsetting the improvement in product cost was a lower AUR driven by deeper promotions and a higher-than-planned mix of clearance sales this quarter. Moving to second-quarter SG&A expenses. SG&A expenses increased 4.6% to $76.3 million at 53.9% of sales.

我們現在已經出售了成本較高的舊庫存，今年迄今的毛利率比去年高出 30 個基點。由於促銷力度加大以及本季清倉銷售高於計劃，導致 AUR 降低，部分抵銷了產品成本的改善。轉向第二季的銷售、管理和行政費用。SG&A 費用成長 4.6%，達到 7,630 萬美元，佔銷售額的 53.9%。

This included a nonrecurring $2.4 million estimated sales tax expense for prior fiscal years. Excluding the onetime sales tax expense, adjusted SG&A increased by 1.3% to $73.9 million and leveraged by 20 basis points to last year at 52.2% of sales, ahead of our expectations.

其中包括上一財年預計的 240 萬美元非經常性銷售稅費用。不包括一次性銷售稅費用，調整後的銷售及管理費用增長 1.3%，達到 7,390 萬美元，槓桿率較去年提高 20 個基點，佔銷售額的 52.2%，超出了我們的預期。

The favorable leverage was mainly driven by efficiencies across logistics and our fulfillment center network, partially offset by higher fixed costs and depreciation from foundational investments. For the quarter, advertising expenses declined slightly compared to last year, leveraging by 20 basis points to 8.3% of sales.

有利的槓桿率主要是由整個物流和我們的履行中心網絡的效率推動的，部分被較高的固定成本和基礎投資的折舊所抵消。本季廣告費用與去年相比略有下降，佔銷售額的 8.3%，下降了 20 個基點。

For the first half, advertising expenses as a percent of sales are in line with last year as we continue to invest behind our brands, support new product innovation, and drive omnichannel sales. Variable or selling expenses, which include outbound shipping costs as well as labor across our customer contact centers, fulfillment centers, and store fleet continued to improve, leveraging by 120 basis points.

上半年，隨著我們繼續投資於品牌、支持新產品創新並推動全通路銷售，廣告費用佔銷售額的百分比與去年持平。變動費用或銷售費用（包括出庫運輸成本以及我們的客戶聯絡中心、履行中心和商店車隊的勞動力）繼續改善，槓桿率提高了 120 個基點。

The favorable leverage was driven by optimizing our outbound shipment network, new parcel agreements, and efficiencies across the fulfillment center network, particularly at Adairsville. Fixed expenses are general and administrative expenses, excluding the sales tax contingency increased 6.7%, deleveraging by 120 basis points, primarily from annualizing depreciation and fixed costs from strategic initiatives like the Adairsville investment initiated in Q3 of 2023.

有利的槓桿作用是透過優化我們的出境運輸網絡、新的包裹協議以及整個履行中心網絡（尤其是在阿代爾斯維爾）的效率來推動的。固定費用是一般費用和管理費用，不包括增加6.7% 的銷售稅意外費用，去槓桿化了120 個基點，主要來自年化折舊和來自2023 年第三季度啟動的Adairsville 投資等戰略舉措的固定成本。

As mentioned earlier, we recognized two discrete expenses this quarter. The first was a $1.6 million restructuring expense from the exit of 1 of our legacy fulfillment centers. The second was a $2.4 million estimated sales tax expense recorded in SG&A. After reviewing the company's sales tax positions, it was determined that certain local sales taxes within one state had not been fully collected in the prior fiscal years, resulting in a contingency expense.

如前所述，我們本季確認了兩項離散費用。第一個是因退出我們的 1 個遺留履行中心而產生的 160 萬美元重組費用。第二個是 SG&A 中記錄的 240 萬美元的估計銷售稅費用。在審查了該公司的銷售稅狀況後，確定某個州內的某些地方銷售稅在上一財年尚未完全徵收，從而導致了意外開支。

Our Q2 adjusted net loss was $0.6 million or $0.02 per diluted share, compared to a net loss of $2 million or $0.06 per diluted share last year. Adjusted EBITDA was positive $10.6 million in the second quarter and positive $12.4 million year to date.

我們第二季調整後的淨虧損為 60 萬美元，即稀釋後每股 0.02 美元，而去年的淨虧損為 200 萬美元，即稀釋後每股 0.06 美元。第二季調整後 EBITDA 為正 1,060 萬美元，年初至今為正 1,240 萬美元。

Inventory balance was up 7% or approximately $11.6 million with clearance inventory at 11% versus 7% last year and 89% in current products. Our capital expenditures for the first half were $8 million versus $34 million in the prior year, primarily used to invest in strategic digital capabilities as per our technology road map.

庫存餘額增加了 7%，約 1,160 萬美元，清倉庫存率為 11%，而去年為 7%，目前產品為 89%。我們上半年的資本支出為 800 萬美元，而前一年為 3,400 萬美元，主要用於根據我們的技術路線圖投資策略數位能力。

As Sam mentioned, during the quarter, we paid off $11 million of outstanding debt, ending the period with no debt on our line of credit, we had $9.8 million of cash and cash equivalents at the end of the quarter, our balance sheet remains strong with liquidity of $210 million.

正如Sam 所提到的，在本季度，我們還清了1100 萬美元的未償債務，在本季度末我們的信用額度上沒有任何債務，在本季度末我們擁有980 萬美元的現金和現金等價物，我們的資產負債表仍強勁流動資金為2.1億美元。

Now turning to our outlook for fiscal year 2024. We are reconfirming our full-year top-line sales guidance of $640 million, which includes 60 basis points from the cost per order and approximately 150 basis points of growth from the 53rd week. Our adjusted EPS guidance is negative $0.22, which excludes the impact of restructuring and the onetime sales tax expense.

現在轉向我們對 2024 財年的展望。我們再次確認 6.4 億美元的全年營收指引，其中包括每份訂單成本 60 個基點以及自第 53 週起​​約 150 個基點的成長。我們調整後的每股盈餘指引為負 0.22 美元，其中不包括重組和一次性銷售稅費用的影響。

We are reaffirming our adjusted EBITDA guidance of $39 million for the full year. We expect to continue to benefit from year-over-year gross margin expansion in the second half driven by lower product costs, partially offset by higher clearance inventory.

我們重申全年調整後 EBITDA 指引值為 3,900 萬美元。我們預計下半年將繼續受惠於產品成本下降所推動的毛利率年增，但清倉庫存增加部分抵銷了毛利率的成長。

We are now projecting full-year gross margin expansion of 150 basis points. Our product sourcing and innovation efforts are expected to continue to reduce product costs and expand margins for the next four years as we increase the percentage of product sourced direct from factory.

我們目前預計全年毛利率將成長 150 個基點。隨著我們增加直接從工廠採購產品的比例，我們的產品採購和創新工作預計將在未來四年繼續降低產品成本並擴大利潤。

We expect SG&A, excluding the sales tax contingency to deleverage by approximately 80 basis points, an improvement versus prior guidance as we realize additional savings from efficiencies in fixed expenses like services and contracts and benefits from our fulfillment center network optimization initiative expected to begin late in Q4.

我們預計SG&A（不包括銷售稅意外費用）將比先前的指導降低約80 個基點，因為我們意識到服務和合約等固定費用的效率可以帶來額外的節省，並且我們的營運中心網路優化計劃預計將於2019 年稍後開始，帶來的好處Q4。

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 120 basis points driven by transportation savings from addition of carriers as of mid-April and continuing Adairsville efficiencies.

廣告費用計劃與銷售額成長保持一致，約為銷售額的 11%。可變費用或銷售費用將繼續增加 120 個基點以上，這是由於 4 月中旬增加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所推動的。

Fixed expenses or general and administrative expenses are expected to be higher, deleveraging by approximately 200 basis points primarily from annualizing depreciation and fixed costs of strategic initiatives.

固定費用或一般和管理費用預計會更高，主要由於年化折舊和策略措施的固定成本，去槓桿化約 200 個基點。

With that, we are confirming our full-year adjusted EBITDA guidance of $39 million. Our adjusted EPS guidance is minus $0.22, with estimated diluted shares of approximately $33 million and a tax rate of 23%.

至此，我們確認全年調整後 EBITDA 指引值為 3,900 萬美元。我們調整後的每股盈餘指引為負 0.22 美元，預計稀釋後股份約為 3,300 萬美元，稅率為 23%。

Our liquidity remains strong, and our capital expenditure is on track to be reduced by more than half to approximately $25 million with the primary focus on our strategic technology road map.

我們的流動性仍然強勁，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, as we build on a solid Q2, we are focused on managing our business prudently, maximizing return from our foundational investments, and taking swift structural actions to improve our business model to unlock profitability and invest in growth.

最後，在我們第二季度業績穩健的基礎上，我們專注於謹慎管理業務，最大限度地提高基礎投資回報，並採取迅速的結構性行動來改進我們的業務模式，以釋放盈利能力並投資於增長。

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

至此，我們將開始提問。

(Operator Instructions)

（操作員說明）

Jeanine Stichter, BTIG.

珍妮·斯蒂克特，BTIG。

Hi, Good morning and congratulations on the progress. I want to start out with some questions around the store fleet. So I guess, first off, I'd love to hear more about the two sites you're planning for next year, what you look for in terms of site selection.

你好，早安，祝賀你的進展。我想先問一些有關商店的問題。所以我想，首先，我很想了解更多有關您明年計劃的兩個站點的信息，以及您在選址方面尋找的內容。

And then as you think about the 25% of the fleet that's up for renewal, how -- maybe some parameters of how these stores look versus the rest of the fleet, either in terms of comp performance or profitability, and how we should think about what the range of outcomes might look like for this portion of the fleet?

然後，當你想到 25% 的車隊需要更新時，也許這些商店與其他車隊相比的一些參數，無論是在比較績效還是盈利能力方面，以及我們應該如何考慮這部分機隊的結果範圍可能是什麼樣的？

Yes. Hi, Janine. I'll maybe take the first part of your question, then I'll allow Heena to dive in a little more detail. So the two LOIs we're excited for their locations.

是的。嗨，珍妮。我可能會回答你問題的第一部分，然後我會讓希娜更詳細地討論一下。因此，我們對這兩個意向書的位置感到興奮。

We haven't announced it publicly yet. We keep that pretty close to the vest. But as was stated in our prepared remarks, our primary criteria is obviously location, and we look at adjacencies. It's the size of the opportunity within the market share for our target consumer.

我們還沒有公開宣布。我們對此非常保密。但正如我們準備好的發言中所述，我們的首要標準顯然是位置，我們會考慮鄰近地區。這是我們的目標消費者的市場佔有率中機會的大小。

And then undoubtedly, we've got some financial criteria that we look at. We stated on our last call that in 2023, our entire fleet was four-wall profitable, and yet we continue to look for improvement and want to ensure that we set appropriate hurdle rates on key metrics so that the store fleet continues to be additive to the company's results, both in terms of sales and profits.

毫無疑問，我們已經有了一些我們要考慮的財務標準。我們在上次電話會議中表示，到2023 年，我們的整個車隊將實現四壁盈利，但我們仍在繼續尋求改進，並希望確保我們在關鍵指標上設定適當的門檻率，以便商店車隊繼續增加公司的業績，包括銷售額和利潤。

And I can add to that, as we look at the fleet that's coming up, so we have about 15 stores coming up for lease renewal by 2026. And the way we are evaluating it, we are looking at a higher threshold of profitability as the renewals come up for those sites and we are evaluating all options, whether it's remodel, relocate, or exit. So that -- as we look at our entire portfolio structurally, we want to make sure that it's improving in profitability overall.

我還可以補充一點，當我們查看即將到來的車隊時，我們將有大約 15 家商店將在 2026 年之前續租。我們評估它的方式是，隨著這些網站的更新，我們正在考慮更高的盈利門檻，並且我們正在評估所有選項，無論是改造、搬遷還是退出。因此，當我們從結構上審視整個投資組合時，我們希望確保其整體獲利能力得到改善。

Perfect. And then I also want to ask about gross margin. So it sounds like you're really seeing the benefits from the sourcing initiatives. Maybe a bit more color on how that unfolds and it sounds like there's a longer tail on those benefits.

完美的。然後我還想問毛利率。聽起來您確實看到了採購計劃的好處。也許對它如何展開有更多的色彩，聽起來這些好處有更長的尾巴。

So kind of what that looks like over the next year or so. And then on the flip side, it sounds like you're seeing consumers continue to gravitate toward clearance. Just more color on what you're seeing from a consumer lens, how you're seeing them dropping and what you're expecting from a promotional standpoint.

未來一年左右的情況會是什麼樣子。另一方面，聽起來消費者繼續傾向於清倉。只是更多地說明您從消費者角度看到的情況、您如何看待它們的下降以及您從促銷角度的期望。

We talked about the introduction of our product development and sourcing strategic initiative. And in a vertical operation like ours, that's one of the most critical, an important strategic unlocks to allow us to not only compete long term and improve our profitability, but quite frankly, it's about bringing to market high-quality innovative products, importantly, more frequently increase our speed to market, meaning from ideation to actual on the floor, so to speak. And obviously, at the same time, leveraging our size and expertise to improve our profit margins.

我們討論了我們的產品開發和採購策略計劃的介紹。在像我們這樣的垂直營運中，這是最關鍵的一項重要策略解鎖，它不僅使我們能夠長期競爭並提高盈利能力，而且坦率地說，它是將高品質的創新產品推向市場，重要的是，更頻繁地提高我們進入市場的速度，可以這麼說，這意味著從構思到實際落地。顯然，同時，利用我們的規模和專業知識來提高我們的利潤率。

And as we have now over a handful of quarters started to really build out that team and bring in expertise to help us leverage our relationships. Our team has historically done a really great job within product development. I think this is the next level to that. And based on our time lines, we're now starting to see the benefits of that and see it flow through.

現在我們已經花了幾個季度的時間開始真正建立這個團隊，並引入專業知識來幫助我們利用我們的關係。我們的團隊在產品開發方面歷來做得非常出色。我認為這是下一個層次。根據我們的時間表，我們現在開始看到這樣做的好處並看到它的進展。

In terms of the consumer today, we're being cautious about our outlook as we move forward. At the same time, we've talked a lot about our philosophical approach to ensuring that our inventories remain clean and healthy.

就當今的消費者而言，我們對未來的前景持謹慎態度。同時，我們討論了很多關於確保我們的庫存保持清潔和健康的哲學方法。

And our clearance inventories ticked up a little bit at the end of Q2, and we are swiftly taking action against that and that impact we've contemplated within our guidance. And at the end of the day, we don't want to be carrying pre -- past seasons clearance inventory into the next season and certainly not into the next year.

我們的清倉庫存在第二季末有所增加，我們正在迅速採取行動應對這一情況以及我們在指導範圍內考慮到的影響。歸根究底，我們不想將上一季的清倉庫存帶入下一季，當然也不想帶入明年。

And so we're going to be really, really focused and urging about getting that in line. The great news is although it ticked up a bit, the quality and health of our inventory is in a really good place, nearly 90% of our current inventory is current seasons goods.

因此，我們將非常非常專注並敦促大家保持一致。好消息是，雖然價格略有上漲，但我們庫存的品質和健康狀況非常好，我們目前庫存的近 90% 都是當季商品。

And so this is a moment in time, we've got to address it and maybe not unlike other times we've had or will have, but we're going to stay focused on turning that inventory and focusing on new product innovation and bringing just great products and stories to market.

因此，這是一個及時的時刻，我們必須解決這個問題，也許與我們已經經歷過或將經歷的其他時期沒有什麼不同，但我們將繼續專注於庫存週轉，專注於新產品創新，並帶來只是將優秀的產品和故事推向市場。

Yes. And just to add on the gross margin piece, Janine, we -- like we said, in Q2, we delivered 90 basis points for the full year, we have line of sight to 150 basis points net of the inventory clearance issue. And as we look ahead, this is a tailwind that is expected to continue for the next four to five years, as we sourced a higher percentage of our products from -- directly from factories. And our goal is to get us back to and ultimately exceed the gross margins that we had pre-pandemic.

是的。Janine，為了補充毛利率，我們——就像我們所說的，在第二季度，我們全年實現了 90 個基點，扣除庫存清理問題後，我們預計將達到 150 個基點。展望未來，這種順風預計將在未來四到五年內持續，因為我們直接從工廠採購的產品比例更高。我們的目標是讓我們回到並最終超過疫情前的毛利率。

Just in terms of a little bit more color on where gross margin is going. On the promotion piece, we're going to continue to be flexible and agile. Our approach is to stay competitive, make sure our brand has integrity with our pricing, and that we are balancing both sales and margins.

只是就毛利率的走向而言，有更多的色彩。在促銷方面，我們將繼續保持靈活和敏捷。我們的方法是保持競爭力，確保我們的品牌與定價的完整性，並確保我們平衡銷售和利潤。

And so that's kind of our approach as we are looking at the second half but we feel very good about our second half in terms of all the innovations coming to market that Sam mentioned.

這就是我們在展望下半年時採取的方法，但就山姆提到的所有即將上市的創新而言，我們對下半年感到非常滿意。

And with Eli on board, we are really excited about the disciplined approach he's going to bring to the merchandising.

隨著 Eli 的加入，我們對他將在行銷中採用的嚴格方法感到非常興奮。

Perfect. That's helpful color. Thanks so much. I can pass it on.

完美的。這是有用的顏色。非常感謝。我可以把它傳遞下去。

Jonathan Komp, Baird.

喬納森康普，貝爾德。

Yes, hi, good morning. A couple of questions this morning. Maybe first, following up on the store topic. When you look at the retail stores, I'm curious what you make of the traffic declines that you're seeing? And given the lower traffic, do you still expect the store base, all the stores to be profitable this year. And if you were to consider closing some stores in the future. Any sense of what impact that might have on your direct business in those markets?

是的，嗨，早安。今天早上有幾個問題。也許首先，跟進商店主題。當您觀察零售店時，我很好奇您對所看到的客流量下降有何看法？考慮到客流量較低，您是否仍期望商店基數，所有商店今年都能獲利？如果您考慮將來關閉一些商店。您知道這可能會對您在這些市場的直接業務產生什麼影響嗎？

Yes, Jonathan, a couple of things I'll say. As we've discussed in the past, traffic trends in the stores have been challenging, we saw the trends improved sequentially this last quarter. Having said that, we're starting to see where we're getting benefits from a multichannel market strategy, although stores have declined.

是的，喬納森，我要說幾件事。正如我們過去所討論的，商店的客流量趨勢一直充滿挑戰，我們看到上個季度的趨勢有所改善。話雖如此，我們開始看到我們從多通路市場策略中獲得的好處，儘管商店數量有所下降。

We're seeing improvements in our online business in those markets. Importantly, we've started to maybe unlock some real local in-store events that are, in fact, driving traffic back to the stores that it's not a price-driven event like this underwear trade-up event.

我們看到這些市場的線上業務有所改善。重要的是，我們可能已經開始解鎖一些真正的本地店內活動，事實上，這些活動將流量帶回商店，因為這不是像內衣換購活動那樣的價格驅動活動。

I said in my prepared remarks, and I want to just emphasize this because it's really, I think, important but gives us an optimism around an event like that is, in the first one in April, we had a pretty good response from the female consumer that was actually participating in the trade-up event. And that number in terms of the proportion to total people coming to the stores to trade up the proportion of women's anticipating jumped dramatically.

我在準備好的發言中說過，我想強調這一點，因為我認為這確實很重要，但讓我們對這樣的事件感到樂觀，在四月份的第一個事件中，我們從女性那裡得到了很好的回應實際參與以舊換新活動的消費者。而這個數字在前往商店進行交易的總人數中所佔的比例方面，女性預期的比例急劇上升。

And so we think that we've now had a couple of those. We've had smaller tests in some other categories that is showing similar results. And so we believe we've unlocked some really, really valuable and relevant experiences for the consumer. As it relates to the profitability and back to Heena's comments around our store portfolio strategy, we're looking at a combination of new locations as well as rationalizing the current portfolio based on productivity and profitability.

所以我們認為我們現在已經有了其中一些。我們在其他一些類別中進行了較小的測試，也顯示出類似的結果。因此，我們相信我們已經為消費者帶來了一些非常非常有價值且相關的體驗。由於它與盈利能力有關，並回到 Heena 對我們商店投資組合策略的評論，我們正在考慮新地點的組合，並根據生產力和盈利能力合理化當前的投資組合。

And as stores come up for renewal, we've got about 25% of the chain here in the next, call it, year and a half. We're also looking beyond that and engaging our landlords and discussions where we believe we can make some meaningful improvements in the profitability.

當商店需要更新時，我們將在接下來的一年半內保留約 25% 的連鎖店。我們也超越了這一點，與我們的房東進行了接觸和討論，我們相信我們可以在盈利能力方面做出一些有意義的改進。

And in some cases where we just don't believe it's going to meet our thresholds, we're open and prepared to exit those locations. So our focus is really, really deep on ensuring that the retail portfolio is a profitable contributor to the overall enterprise.

在某些情況下，我們只是不相信它會達到我們的門檻，我們持開放態度並準備退出這些地點。因此，我們的重點非常非常深入，確保零售投資組合能為整個企業帶來獲利。

At the same time, we recognize the importance of a multichannel ecosystem and the benefits it provides the company from a consumer engagement and sales and transaction perspective.

同時，我們認識到多通路生態系統的重要性以及它從消費者參與、銷售和交易的角度為公司帶來的好處。

Got it. And then maybe to follow up on inventory, just to ask a little bit further the sequential dollar increase from the first to second quarter looks pretty substantial, maybe the largest that we've seen in the past for Duluth. So could you maybe give a little more color? Were there any early receipts? Are there signed some of the new categories aren't resonating? And maybe a broader question about sort of SKU proliferation and how you avoid adding too much in terms of the overall SKU count as you pursue some of these new categories?

知道了。然後也許要跟進庫存，只是想進一步詢問一下，從第一季到第二季的美元連續增長看起來相當可觀，也許是我們過去在德盧斯看到的最大增幅。那你能多給一點顏色嗎？有早期收據嗎？是否有一些新類別沒有引起共鳴？也許還有一個更廣泛的問題，涉及 SKU 激增，以及在追求某些新類別時如何避免在整體 SKU 數量方面增加過多？

Yes. So in Q2, we shared in Q1 coming out of -- let me be clear. Coming out of Q4, sold a lot more units in a highly promotional environment. So we came out of Q4 in a much leaner inventory position than what we had projected when we were placing that spring season orders.

是的。因此，在第二季度，我們在第一季分享了——讓我澄清一下。從第四季開始，在高度促銷的環境下銷售了更多單位。因此，我們第四季的庫存狀況比我們下春季訂單時預計的要少得多。

And so 1 of the areas that we sold through at a higher rate was our core inventory, which had an impact on our Q1 sales as we ramped up heading into Q2, not only were we able to react to our core products, but the team did go back and react to some areas within the spring or summer collection that they thought we were light on those orders weren't receded until April.

因此，我們銷售率較高的領域之一是我們的核心庫存，隨著我們進入第二季度，這對我們第一季的銷售產生了影響，我們不僅能夠對我們的核心產品做出反應，而且團隊也能夠做出反應確實回去並對春季或夏季系列中的某些領域做出反應，他們認為我們對這些訂單的關注度很低，直到四月份才撤回。

And so candidly, it cut short our selling window which impacted our sell-throughs and led to higher clearance inventories. And as I said before, we're going to address that here this quarter. We're going to continue to see sequential improvements in our inventory levels, clearance specifically as it relates to the penetration to the total.

坦白說，它縮短了我們的銷售窗口，影響了我們的銷售量並導致清倉庫存增加。正如我之前所說，我們將在本季解決這個問題。我們將繼續看到庫存水準的連續改善，尤其是清倉，因為它與總滲透率有關。

And largely, I think the health of our inventory, as I said, to Janine, nearly 90% is current seasoned stock. And so we feel good about where we are today, and we've got a little bit of this moment in time where inventories are going.

在很大程度上，我認為我們庫存的健康狀況，正如我對 Janine 所說的，近 90% 是當前的舊庫存。因此，我們對今天的處境感覺良好，而且我們在庫存方面也有一些進展。

And are you willing to share how much incremental markdown pressure? I know you -- given the outlook on a net basis for the gross margin, but how much incremental discounting pressure are you assuming or any detail there?

而你願意分擔多少增量降價壓力嗎？我了解您 - 考慮到毛利率的淨值前景，但您假設的增量折現壓力有多大或有任何細節嗎？

Yes, that's contemplated in that 50 basis points that we took back for the year-end guidance.

是的，我們在年終指導中收回的 50 個基點就考慮到了這一點。

Yes. So, Jonathan, just reiterating, we had 200 basis points -- cost and sourcing initiatives, and we've layered in 50 basis points to ensure we come out clean and are able to take mitigating actions for clearance inventory in the second half.

是的。所以，喬納森，重申一下，我們有 200 個基點——成本和採購計劃，我們已經分層了 50 個基點，以確保我們能夠乾淨利落，並能夠在下半年採取緩解行動清理庫存。

Okay, great. And then Heena, just one last one, if I could follow up. I know you don't guide quarterly specifically, but third quarter typically is your lowest profitability quarter.

好的，太好了。然後希娜，最後一位，如果我可以跟進的話。我知道您不會具體提供季度指導，但第三季度通常是盈利能力最低的季度。

So I'm wondering if you're expecting to be flat or positive on adjusted EBITDA or any other just directional color as we think about modeling the quarters?

所以我想知道，當我們考慮對季度進行建模時，您是否期望調整後的 EBITDA 或任何其他方向性顏色持平或為正？

I think from a top line perspective, the quarter is expected to follow the seasonality as in prior years. From a margin perspective, I would say, given the clearance inventory, we will see higher pressure in Q3 as we try to clean out of it sooner rather than later.

我認為從營收角度來看，本季預計將遵循前幾年的季節性。從利潤率的角度來看，我想說，考慮到清倉庫存，我們將在第三季看到更大的壓力，因為我們試圖盡快清理庫存。

Okay. Great. Appreciate the color. Thanks, again.

好的。偉大的。欣賞顏色。再次感謝。

Thank you.

謝謝。

Dylan Carden, William Blair.

迪倫卡登，威廉布萊爾。

Thanks. I'm curious if you can provide any color on just the range of performance between the stores. And sort of what's the best way to think about the productivity, if you go all the way back to kind of 2017 when you're really ramping the count it's more or less half since then.

謝謝。我很好奇您是否可以提供有關商店之間性能範圍的任何顏色。考慮生產力的最佳方式是什麼，如果你一直追溯到 2017 年，當你真正增加數量時，從那時起它或多或少是一半。

So what's -- is that the entire fleet? Is that a factor of sort of an early pop from direct business? I guess -- and the ultimate sort of theme here is just to kind of get a sense of what the potential impact could be as you close or renovate?

那麼整個艦隊是什麼呢？這是直接業務早期流行的因素嗎？我想——這裡的最終主題只是為了了解關閉或翻新時可能產生的潛在影響？

Yes. So, Dylan, maybe I can just give more of how we are thinking about the store portfolio. The stores play a critical role as we think about our omnichannel strategy. Our customers that come to the stores and shop online.

是的。所以，迪倫，也許我可以更多地介紹一下我們對商店組合的看法。當我們考慮全通路策略時，商店發揮著至關重要的作用。我們的客戶來到商店並在線購物。

They, on average, have a higher transaction or higher order value plus they shop more than twice with more than twice the frequency compared to single channel. So stores remain a critical part of our overall omnichannel strategy. They play off each other. They also offer a lot of services like buy online, pick up in-store returns, etc.

平均而言，他們的交易量或訂單價值更高，而且與單一管道相比，他們的購物次數是兩倍以上，頻率是單一管道的兩倍以上。因此，商店仍然是我們整體全通路策略的重要組成部分。他們互相較量。他們還提供很多服務，例如線上購買、店內退貨等。

So they are a critical component of offering that seamless consumer experience. In terms of profitability of the fleet, like any fleet, there is a normal curve. So some stores are in the top 15, some are in the bottom. And that's why we are -- we have a three-pronged approach.

因此，它們是提供無縫消費者體驗的關鍵組成部分。就機隊的獲利能力而言，與任何機隊一樣，存在正常曲線。因此，有些商店位於前 15 名，有些商店位於最後 15 名。這就是我們的原因——我們採取三管齊下的方法。

One is to address one of the things that was asked earlier on store traffic. One prong is making the brand awareness and store awareness for the entire fleet, higher by having locally targeted efforts on marketing and experiential events.

一是解決先前提出的有關商店客流量的問題之一。一方面是透過在當地開展有針對性的行銷和體驗活動來提高整個車隊的品牌知名度和商店知名度。

The other one is rationalizing our current fleet and holding them to a higher standard of profitability as we come up for renewals naturally, whether it's through remodel, exit, or relocate. And then the third one is adding new sites to gain market share with our target consumer in the context of the omnichannel market.

另一個是合理化我們現有的機隊，並在我們自然地進行更新時使它們保持更高的盈利標準，無論是透過改造、退出還是搬遷。第三個是新增網站，以在全通路市場的背景下獲得目標消費者的市場份額。

So that kind of how I would look at the overall portfolio, the goal is really to grow that entire portfolio profitability.

因此，我如何看待整個投資組合，目標實際上是提高整個投資組合的獲利能力。

I guess as you think about square footage growth over the next five years then as these leases come through between openings and rationalization is the goal to kind of maintain a flat overall square footage to more productive level? Is that sort of broad strokes what we're talking about here?

我想，當您考慮未來五年的平方英尺成長時，隨著這些租賃在空缺和合理化之間進行，目標是保持整體面積平坦以提高生產力水平嗎？我們在這裡討論的就是這種粗略的思路嗎？

We will give you more specifics on those as we get deeper into especially the renewal portfolio. Like we said earlier, we are on track to open two new stores in the back half of '25 and we -- our goal is to maintain a healthy level of stores that are growing and profitable.

隨著我們深入研究尤其是更新產品組合，我們將為您提供更多詳細資訊。正如我們之前所說，我們預計在 25 年下半年開設兩家新店，我們的目標是保持門市的健康成長和獲利水準。

Let me try another one. So if you're -- it seems like you've got a better handle on sort of line of sight into a lot of really nice cost efficiencies here. I'm curious as you kind of roll those through when you might expect to kind of get back to a level of more consistent profitability. Is that something that you think -- you kind of mentioned four years there on at least sort of the gross margin side? Is this going to be a sort of relatively slow process? Or do you think this model can inflect relatively quickly kind of the next year?

讓我嘗試另一個。因此，如果您——似乎您已經更好地掌握了這裡的許多非常好的成本效率。我很好奇，當您可能希望恢復到更穩定的盈利水平時，您會滾動這些內容。您是否也這麼認為──您提到了四年，至少在毛利率方面？這會是一個相對緩慢的過程嗎？或者您認為這種模式明年會相對快速地改變嗎？

Yes. I think Dylan, Heena brought some incredible rigor and insight into how we're going about both our benchmarking studies as well as then the application of those findings, evidenced in part with the announcement we made to close one of our legacy fulfillment centers through the lens of the investment we made in the Adairsville and the efficiency gains we're getting out of that.

是的。我認為迪倫、希娜對我們如何進行基準測試以及這些研究結果的應用帶來了令人難以置信的嚴謹和洞察力，這在我們宣布關閉我們的一個遺留履行中心的公告中得到了部分證明。

And so I think that that's an example of where -- there's some real-time benefits that we will continue to look for as well as ensure that we have visibility to what the longer-term implications are. That, coupled with some of the benefits we're starting to see from some of these other initiatives like our product development and sourcing initiative.

所以我認為這就是一個例子——我們將繼續尋求一些即時的好處，並確保我們了解長期影響。再加上我們開始從其他一些措施（例如我們的產品開發和採購措施）中看到的一些好處。

I think we're getting some benefits on the margin line. We're getting some benefits in the SG&A line, this legacy fulfillment strategy, the capacity and optimization strategy, it's leading to Q4 benefits of this year. And then on an annual basis, a new baseline run rate of about a $5 million reduction in our SG&A line and that's real money. And so we believe that that benefit is actually not coming at the cost of us doing more business for flowing through greater profitability.

我認為我們在利潤線上獲得了一些好處。我們在 SG&A 系列、傳統履行策略、產能和優化策略方面獲得了一些好處，它帶來了今年第四季的收益。然後，每年，新的基準運行率使我們的 SG&A 線減少約 500 萬美元，這是真正的錢。因此，我們認為，這種好處實際上並不是以我們開展更多業務來獲得更高的盈利能力為代價的。

So it's a combination of the different line items that are attached to our different strategic initiatives. And I think this is an ongoing focus of ours, there's really no end in sight in terms of us continuing to look for ways to optimize our costs and get ourselves into a place where our investment strategies really are driving greater top line and flow through.

因此，它是附屬於我們不同策略計劃的不同項目的組合。我認為這是我們持續關注的焦點，我們繼續尋找優化成本的方法，讓我們的投資策略真正推動更高的營收和流量，這實際上是沒有盡頭的。

And Very good. And just -- I just want to be sort of crystal. The comment that you can get gross margins above pre-pandemic? Are you talking about getting back to, if not above, the 57%, just so we're using real numbers?

非常好。只是──我只是想成為某種水晶。有評論說毛利率可以高於疫情前嗎？您是在談論回到（如果不是高於）57%，以便我們使用真實數字嗎？

Yes, I would just -- I would say directionally, our goal and what we're marching toward is getting gross margins at or better than pre-pandemic levels.

是的，我只是——我想說的是，我們的目標和我們正在努力的目標是使毛利率達到或高於疫情前的水平。

Okay. And then I had one more that's escaping me, apologies. Oh, freight. And maybe I missed it, but is there any contemplation of higher freight rates in the guide? Or is it that given how you turn inventory that, that's more like 2025 story that we can kind of wait for?

好的。然後還有一件事我沒能忘記，抱歉。噢，貨運。也許我錯過了，但指南中是否有更高運費的考慮？或者考慮到你如何週轉庫存，這更像是我們可以等待的 2025 年故事？

Yes, that's more of a '25 impact versus the '24 impact. But yes, we've contemplated the various headwinds and tailwinds in our guide.

是的，這更多的是 25 年的影響與 24 年的影響。但是，是的，我們在指南中考慮了各種逆風和順風。

Excellent. Thanks a lot.

出色的。多謝。

Thank you, Dylan.

謝謝你，迪倫。

And this concludes the question and answer session and concludes the conference. Thank you for attending. You may now disconnect.

問答環節到此結束，會議結束。感謝您的出席。您現在可以斷開連線。