Duluth Holdings Inc (DLTH) 2024 Q3 法說會逐字稿

Good morning, and welcome to Duluth Trading's third-quarter financial results conference call. (Operator Instructions). Please note, this event is being recorded. I would now like to turn the conference over to Nitza McKee, Senior Associate, IR at ICR. Please go ahead.

早安，歡迎參加德盧斯貿易公司第三季財務業績電話會議。（操作員說明）。請注意，此事件正在被記錄。現在我想將會議交給 ICR IR 高級助理 Nitza McKee。請繼續。

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

謝謝您，歡迎參加今天的電話會議，討論德盧斯貿易公司第三季的財務表現。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。

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，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, Nitza, and thank you all for joining today's call. Our third quarter performance did not meet our expectations. We felt the impact of a highly promotional environment and unseasonably warm weather resulting in a net sales decline for the quarter of 8.1% with our direct and retail channel delivering similar year-over-year top line results. Despite the macro and weather-related impacts, we are pleased to see growth in our average order value and a double-digit increase in digital traffic. That said, these were not enough to offset the year-over-year contraction in transactions.

謝謝尼扎，也謝謝大家參加今天的電話會議。我們第三季的業績沒有達到我們的預期。我們感受到了高度促銷環境和異常溫暖天氣的影響，導致本季淨銷售額下降 8.1%，而我們的直接和零售通路的營收業績與去年同期相似。儘管受到宏觀和天氣相關的影響，我們很高興看到平均訂單價值的增長和數位流量的兩位數增長。儘管如此，這些還不足以抵消交易量的年比收縮。

We ended the quarter with inventory levels higher than planned, driven by a combination of early planned receive of core products to ensure we are in stock for the holiday selling season and cold weather goods in which sales were impacted by warmer weather. As a result, we began taking the necessary actions to increase our unit selling velocity beginning in late October. And I'm pleased to report that our top line trends have meaningfully improved, leading into the all-important Black Friday week and continuing through Cyber Monday.

本季末，我們的庫存水準高於計劃，這是由於早期計劃接收核心產品以確保我們在假日銷售季節有庫存，以及銷售受到天氣變暖影響的寒冷天氣商品。因此，我們從 10 月底開始採取必要的行動來提高單位銷售速度。我很高興地向大家報告，我們的營收趨勢已顯著改善，進入了最重要的黑色星期五週並持續到網路星期一。

As we enter the final peak selling weeks of the holiday season, we are committed to prudently managing our inventory and ending the fiscal year in a clean, high-quality position. In what remains a highly competitive market, we have an unwavering commitment to delivering value to our customers while also positioning our business for continued success in the future.

隨著我們進入假期季節的最後一個銷售高峰週，我們致力於謹慎管理我們的庫存，並以乾淨、高品質的狀態結束本財年。在競爭激烈的市場中，我們堅定不移地致力於為客戶提供價值，同時也為我們的業務在未來持續取得成功奠定基礎。

Looking past fiscal 2024, leveraging our advanced sourcing and product innovation functions and in partnership with our new Chief Merchant, Eli Getson, we are significantly enhancing our go-forward assortment and inventory management. As we look ahead to 2025 and beyond, we are building upon the success of our strategic initiatives, making meaningful progress on structural improvements and embarking on enterprise planning an end-to-end cross-functional initiative to significantly enhance our operational effectiveness and strategic planning processes.

展望 2024 財年，利用我們先進的採購和產品創新功能，並與我們的新任首席商人 Eli Getson 合作，我們將顯著增強我們的前瞻性分類和庫存管理。展望2025 年及以後，我們正在戰略舉措取得成功的基礎上，在結構改進方面取得有意義的進展，並著手開展企業規劃——一項端到端的跨職能舉措，以顯著提高我們的運營效率和策略規劃流程。

There is much work ahead of us and we are laser-focused on improving our financial performance while driving operational excellence over both the near and long term. I'd like to provide you with an update on the key initiatives tied to our Big Dam Blueprint, the foundation of our omnichannel consumer strategy, which are on track with expected benefits materializing.

我們還有很多工作要做，我們將專注於改善我們的財務業績，同時推動近期和長期的卓越營運。我想向您提供與我們的大壩藍圖相關的關鍵舉措的最新信息，大壩藍圖是我們全渠道消費者戰略的基礎，這些舉措正在實現預期效益的軌道上。

First, an update on our sourcing and product innovation efforts, which remain a critical strategic unlock for the business. As a direct result of this initiative, we registered another quarter of gross margin expansion with over 200 basis points of improvement over Q3 last year. We continue to have line of sight to multiple years of significant product cost benefits. In addition to reducing product costs, this initiative enables us to bring to market high quality, innovative products more frequently with increased speed to market.

首先，更新我們的採購和產品創新工作，這仍然是業務的關鍵策略解鎖。作為這項措施的直接結果，我們的毛利率又實現了一個季度的成長，比去年第三季提高了 200 個基點。我們繼續關注多年來顯著的產品成本效益。除了降低產品成本之外，這項措施還使我們能夠更頻繁地向市場推出高品質的創新產品，並加快上市速度。

Regarding our fulfillment center network optimization plan to maximize service, capacity, and cost, we continue to leverage Adairsville's fully operational and highly automated fulfillment center capabilities. It's enabled structural improvements like exiting the Dubuque facility successfully on time and with a smooth transition of the volume into the remaining network. As we enter the peak holiday selling season, we are on track for Adairsville to process the majority of online orders and replenishment volume. In fact, over the Thanksgiving weekend through Tuesday, Adairsville processed 64% more units compared to last year with a significant reduction in our click to delivery time.

關於我們的履行中心網路優化計劃，以最大限度地提高服務、容量和成本，我們繼續利用阿代爾斯維爾全面運作和高度自動化的履行中心功能。它實現了結構改進，例如成功按時退出迪比克設施，並將容量平穩過渡到剩餘網路。隨著我們進入假日銷售旺季，我們預計在阿代爾斯維爾處理大部分線上訂單和補貨量。事實上，從感恩節週末到週二，阿代爾斯維爾的處理量比去年增加了 64%，點擊交貨時間也顯著縮短。

Importantly, in Q3, we registered another quarter of cost per unit fulfillment benefits with the variable CPU in Adairsville, 73% lower than the legacy facility. With the elimination of fixed costs from the exit of the Dubuque fulfillment center, we continue to anticipate annualized run rate savings of approximately $5 million with expected benefits starting in the fourth quarter of this year, and we're evaluating further network optimization opportunities.

重要的是，在第三季度，我們在 Adairsville 的可變 CPU 中實現了每單位成本降低了四分之一，比傳統設施低了 73%。透過消除迪比克履行中心退出帶來的固定成本，我們繼續預計年化運行率將節省約 500 萬美元，預期收益將從今年第四季度開始，並且我們正在評估進一步的網路優化機會。

Shifting to our channel strategy to serve a predominantly and growing omnichannel consumer. The mobile device is our number one and most important digital customer touch point and represents a gateway to the brand. We continue to build on our success with our mobile-first strategy, fueling mobile penetration growth as a percentage of total across both visits and sales on our website. In the quarter, 71% of visits and 57% of sales came through a mobile device. We saw 15% growth in visits on mobile, and our conversion remains significantly higher than the industry average.

轉向我們的通路策略，為主導且不斷成長的全通路消費者提供服務。行動裝置是我們第一個也是最重要的數位客戶接觸點，也是通往品牌的門戶。我們繼續透過行動優先策略鞏固我們的成功，推動行動滲透率在我們網站的訪問量和銷售量中所佔百分比的成長。本季度，71% 的訪問量和 57% 的銷售額來自行動裝置。我們的行動訪問量成長了 15%，而且我們的轉換率仍顯著高於行業平均。

Retail stores play a critical component of our omnichannel strategy. Two-thirds of new consumers prefer shopping in-store. 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 services like returns, buy online, pick up in store and fulfilling online orders, creating a seamless consumer experience. Combining a digital strategy with a relevant and productive store portfolio is critical to winning in an omnichannel ecosystem. And as part of our structural improvements, we are making great progress to revitalize our store portfolio.

零售店是我們全通路策略的重要組成部分。三分之二的新消費者更喜歡在店內購物。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、店內取貨和履行線上訂單等服務，創造無縫的消費者體驗。將數位化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。作為我們結構改進的一部分，我們在振興我們的商店組合方面取得了巨大進展。

We're on track to open two new stores in priority markets in the second half of 2025. We've identified a handful of stores, which no longer meet our higher hurdle rate requirements and our potential targets for closure or relocation. And additionally, we've launched local marketing campaigns in priority markets to drive retail traffic.

我們預計在 2025 年下半年在優先市場開設兩家新店。我們已經確定了一些商店，它們不再滿足我們更高的門檻要求以及我們關閉或搬遷的潛在目標。此外，我們還在重點市場發起了本地行銷活動，以增加零售流量。

With respect to our go-to-market brand and marketing strategy, we've switched our media marketing partner, and we're thrilled with the new enhancements to our next generation of consumer-centric capabilities they are bringing. We remain focused on upper funnel brand building and driving more traffic and conversion with target consumers.

關於我們的市場品牌和行銷策略，我們已經更換了媒體行銷合作夥伴，我們對他們為我們帶來的下一代以消費者為中心的功能的新增強感到興奮。我們仍專注於漏斗上層品牌建設，並為目標消費者帶來更多流量和轉換。

The underpinnings of our brands and sub-brands remained strong, and our level of newness in the quarter increased by 60 basis points over last year. Despite the challenging third quarter results, we registered several merchandising and product innovation wins.

我們的品牌和子品牌的基礎仍然強勁，本季的新鮮度比去年增加了 60 個基點。儘管第三季業績充滿挑戰，但我們在銷售和產品創新方面取得了許多勝利。

While our women's business declined this quarter, we continue to see strength across the first air category up 22% and in AKHG with growth of 6%. Our Heirloom Garden collection continues to perform well. Growth in first layer was driven by our Buck Naked and Amadeo collections as well as newness offered in our pajama and loungewear business. We expanded our plus-size assortment, including our successful adjust bus, a bonded zip front bra with a sleep silhouette and crisscross back offering extra support and security.

雖然本季我們的女性業務有所下降，但我們仍然看到第一航空類別的成長勢頭強勁，成長了 22%，AKHG 成長了 6%。我們的傳家花園系列繼續表現良好。第一層的成長是由我們的 Buck Naked 和 Amadeo 系列以及我們的睡衣和家居服業務提供的新產品所推動的。我們擴大了大尺碼的產品範圍，包括成功的調整巴士、帶有睡眠輪廓的粘合拉鍊前胸文胸和提供額外支撐和安全性的十字形背部。

Coupled with continued popularity of our TeeLUXE bra, our bra business grew by 20% this quarter. Within the women's AKHG business, customers continue to respond well to our signature mid tops and bottoms, which drove overall AKHG quarter growth of 6%. Growth was driven by strength in several key collections, including Renew Bamboo, Roadless, and Trail Tech. These collections support our ongoing focus on outdoor recreation through performance attributes.

加上我們的 TeeLUXE 胸罩的持續受歡迎，我們的胸罩業務本季成長了 20%。在女裝 AKHG 業務中，客戶對我們標誌性的中上衣和下裝繼續反應良好，推動 AKHG 季度整體成長 6%。成長是由幾個關鍵系列的實力推動的，包括 Renew Bamboo、Roadless 和 Trail Tech。這些系列透過性能屬性支持我們對戶外休閒的持續關注。

Our Heirloom Garden collection continues to be a favorite for her as evidenced by growth over last year of nearly 70%. Bolstered by a variety of new prints, Heirloom Garden was the number one women's apparel collection for every week in Q3. Our strategy of refreshing core colors with the introduction of multiple exciting prints continue to prove successful.

我們的 Heirloom Garden 系列仍然是她的最愛，比去年增長近 70% 證明了這一點。在各種新印花的支持下，Heirloom Garden 成為第三季每週排名第一的女裝系列。我們透過引入多種令人興奮的印花來刷新核心色彩的策略繼續被證明是成功的。

Our men's business was more heavily impacted by unseasonably warm weather. However, we did see continued strength in our Dry on the Fly technology as recent expansions into tees and unders continue to resonate. Further, we intentionally extended the summer season with a focus on Dry on the Fly shorts, showcasing one of our key cooling technologies that resonated with warmer temperatures throughout the quarter.

我們的男裝業務受到異常溫暖天氣的影響更為嚴重。然而，我們確實看到了 Dry on the Fly 技術的持續優勢，因為最近對 T 恤和 Unders 的擴展繼續引起共鳴。此外，我們有意延長夏季，重點關注 Dry on the Fly 短褲，展示我們的一項關鍵冷卻技術，該技術與整個季度溫暖的氣溫產生共鳴。

We launched our new Souped-Up Sweats collection earning Q3, Duluth's version of your basic sweats set with unbeatable comfort and durability, allowing for easier movement of working and even better for lounging. This fabrication made for both him and her is resonating well with our customers, and fleece will continue to be a major focus for us moving forward. Our new T-shirt flannel, which is the perfect blend of your favorite flannel's warmth, and your most comfortable T-shirt's softness performed well this quarter. We saw further positive response in men's woven tops, driven by additional newness with our men's indigo twill and brushed oxford shirts, both of which are lighter-weight casual offerings in the standard fit.

我們推出了新的Souped-Up Sweats 系列，贏得了第三季度的大獎，這是基本款運動衫套裝的德盧斯版本，具有無與倫比的舒適性和耐用性，讓工作時的活動更加輕鬆，甚至更適合休閒。這種為他和她製作的面料與我們的客戶產生了良好的共鳴，羊毛將繼續成為我們前進的主要焦點。我們的新款法蘭絨T卹完美融合了您最喜愛的法蘭絨的溫暖與您最舒適的T恤的柔軟度，本季表現出色。我們在男士梭織上衣上看到了進一步的積極反應，這得益於我們的男式靛藍斜紋布和拉絨牛津襯衫的額外新穎性，這兩種襯衫都是標準版型的輕質休閒產品。

As we move into Q4, we're focused on driving volume with our largest seasonal categories, including flannels, shirt jacks, and line bottoms. We're excited about introducing new innovation in the outerwear category with our men's insulator jackets, which contain revolutionary solar ball insulation that transforms the sun's infrared energy into instantaneous warmth, no battery pack needed. And as the gift-giving season approaches, we will focus on cart builders with unders, socks, and hard goods and lean into cozy loungewear and pajama sets which are performing well, especially for her.

隨著進入第四季度，我們的重點是提高我們最大的季節性類別的銷量，包括法蘭絨、襯衫夾克和線條下裝。我們很高興在外套類別中推出男士隔熱夾克，其中包含革命性的太陽能球隔熱材料，可將太陽的紅外線能量轉化為瞬時溫暖，無需電池組。隨著送禮季節的臨近，我們將重點關注內褲、襪子和耐用品的手推車製造商，並傾向於舒適的家居服和睡衣套裝，這些套裝表現良好，尤其是對她來說。

As mentioned earlier, we onboarded our new advertising agency this quarter and increased our media spend with an enhanced focus on our target customer. The result was a double-digit increase in website traffic driven by first-time visitors. We were pleased to see the significant increase and have shifted our focus on optimizing our lower funnel conversion tactics and retargeting efforts to capitalize on this traffic. We're excited about several key branding moments, including a feature gift guide segment that aired last week on Good Morning America, a strong presence in this year's college football playoff gains and continuing our partnership with Yellowstone.

如前所述，我們本季成立了新的廣告公司，並增加了媒體支出，更加關注我們的目標客戶。結果是首次訪客帶來的網站流量出現了兩位數的成長。我們很高興看到這一流量的顯著增長，並將我們的重點轉向優化我們的下漏斗轉換策略和重新定位努力以利用這些流量。我們對幾個關鍵的品牌時刻感到興奮，包括上週在《早安美國》節目中播出的特色禮品指南片段、在今年大學橄欖球季後賽中的強勢表現以及繼續與黃石公園的合作夥伴關係。

As many of you have likely seen, Duluth Trading returned for a third year in partnership with Yellowstone to celebrate its highly anticipated fifth season, which premiered on November 11. Fan favorite stories from the bunkhouse offer a behind-the-scenes look at Jefferson White's journey as Jimmy. Jefferson White embraces our belief in taking our life with your own two hands in some of our most innovative Duluth products while sharing candid, behind-the-scene stories from life on set. He embodies the authenticity and resilience that define both the brand and Yellowstone's iconic characters. Reflecting the hard-working spirit of the American Frontier, Duluth products are designed for the candor lifestyle capturing the grip, endurance, and timeless style that resonates with fans everywhere. The partnership spans all Duluth channels website, paid social and more, amplifying the shared values of quality and authenticity.

正如你們許多人可能已經看到的那樣，德盧斯貿易公司與黃石公園合作第三年回歸，慶祝其備受期待的第五季，該季於 11 月 11 日首播。深受粉絲喜愛的工棚故事，帶您了解傑斐遜懷特 (Jefferson White) 飾演吉米 (Jimmy) 的幕後故事。Jefferson White 擁護我們的信念，用我們最具創新性的德盧斯產品用兩隻手來掌控我們的生活，同時分享片場生活中坦率的幕後故事。他體現了品牌和黃石公園標誌性人物的真實性和韌性。德盧斯產品體現了美國邊境的勤奮精神，專為坦率的生活方式而設計，捕捉抓地力、耐力和永恆的風格，引起世界各地粉絲的共鳴。此次合作涵蓋德盧斯所有管道、網站、付費社群媒體等，擴大了品質和真實性的共同價值。

In summary, we're realizing benefits from our long-term strategic initiatives, including product development and sourcing, logistics and supply chain, our mobile-first efforts and go-to-market initiatives. We're delivering a high level of product newness and innovation, which is resonating with both existing and new customers.

總而言之，我們正在從我們的長期策略舉措中獲益，包括產品開發和採購、物流和供應鏈、行動優先的努力和進入市場的舉措。我們提供高水準的產品新穎性和創新性，引起現有和新客戶的共鳴。

We are taking swift action on structural initiatives like completing Phase 2 of our fulfillment center network optimization plan and have made great progress on our retail store portfolio strategy. And we're embarking on a significantly enhanced end-to-end cross-functional enterprise planning process to drive operational excellence. Importantly, we remain in a strong financial position with quarter-end liquidity of $165 million. Finally, we're making great strides in our long-term strategic initiatives that will help us unlock the full profit potential of the enterprise, setting us up for future success.

我們正在迅速採取結構性舉措，例如完成我們的履行中心網路優化計劃的第二階段，並在我們的零售店組合策略方面取得了巨大進展。我們正著手顯著增強端到端跨職能企業規劃流程，以推動卓越營運。重要的是，我們仍然保持強勁的財務狀況，季末流動資金為 1.65 億美元。最後，我們在長期策略計畫方面取得了長足進步，這將有助於我們釋放企業的全部利潤潛力，為我們未來的成功奠定基礎。

I look forward to sharing more on our fourth quarter call, and we'll now turn it over to Heena to provide more details on our third quarter results. Heena?

我期待在第四季度的電話會議上分享更多信息，現在我們將把它交給 Heena，以提供有關我們第三季度業績的更多詳細信息。希娜？

Thanks, Sam, and good morning. In the third quarter, we expanded our gross margin by 210 basis points. However, top line sales declined 8.1%. Unusually warm weather impacted fall/winter seasonal sales, and as a result, our inventory levels increased at the end of the quarter. As Sam mentioned, we are taking swift actions to end the year clean on inventories. And as trends have improved, our second half-to-date top line is now tracking at minus 3%.

謝謝，山姆，早安。第三季度，我們的毛利率擴大了 210 個基點。然而，總銷售額下降了 8.1%。異常溫暖的天氣影響了秋冬季節的銷售，因此，我們的庫存水準在季度末有所增加。正如薩姆所提到的，我們正在迅速採取行動，以在年底清理庫存。隨著趨勢的改善，我們下半年至今的營收成長率目前為負 3%。

We are pleased with the progress of our strategic initiatives as we saw a second consecutive quarter of gross margin expansion from our sourcing initiatives and reduction in fulfillment and transportation costs from the logistics network. Our structural improvements are on track. In Q3, we successfully completed Phase 2 of our fulfillment network optimization and exited one of our legacy fulfillment centers announced last quarter. As stated on the last two calls, our primary focus is to unlock the full profit potential of the enterprise and to strategically deploy capital to unlock growth opportunities. Realizing savings from Phase 2 of the fulfillment network, revitalizing the store portfolio to increase productivity and profitability and allocating capital to omnichannel growth are key steps towards making structural changes to drive sustainable, profitable growth.

我們對策略性措施的進展感到高興，因為我們看到採購措施的毛利率連續第二季成長，以及物流網路的履行和運輸成本降低。我們的結構改進已步入正軌。在第三季度，我們成功完成了履行網路最佳化的第二階段，並退出了上個季度宣布的一個傳統履行中心。正如最後兩次電話會議所述，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機會。從履行網路第二階段實現節約、重振商店組合以提高生產力和盈利能力以及將資金分配給全渠道增長，是進行結構性變革以推動可持續盈利增長的關鍵步驟。

In addition to our strategic initiatives and structural improvements, as Sam mentioned, we have launched enterprise planning an end-to-end cross-functional initiatives to significantly enhance our operational and planning processes. Providing an update to Phase 2 of our fulfillment center network, we completed the closure of our Dubuque, Iowa facility at the end of October. This incurred restructuring expenses of $7.7 million, which was spread between two quarters with $1.6 million recognized in Q2 and $6.2 million in Q3. We have begun to realize savings in Q4 for a full year annualized run rate savings of $5 million in 2025. Leveraging our most efficient and cost-effective Adairsville fulfillment center, we are now evaluating the next phase to continue to maximize network capacity and cost.

正如 Sam 所提到的，除了我們的策略舉措和結構改進之外，我們還啟動了企業規劃和端到端跨職能舉措，以顯著增強我們的營運和規劃流程。我們對履行中心網路的第二階段進行了更新，並於 10 月底完成了愛荷華州迪比克工廠的關閉。這產生了 770 萬美元的重組費用，分攤在兩個季度中，其中第二季確認了 160 萬美元，第三季確認了 620 萬美元。我們已開始在第四季實現節省，到 2025 年全年年化運行率可節省 500 萬美元。利用我們最高效和最具成本效益的阿代爾斯維爾履行中心，我們現在正在評估下一階段，以繼續最大限度地提高網路容量和成本。

We are pleased to share the progress on our retail store portfolio strategy. 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, we have established higher hurdle rate requirements due to new leases to enhance the productivity and profitability of our portfolio. As mentioned previously, almost 25% of our current store portfolio is coming up for renewal by 2026. We have also renewed our store marketing efforts in priority markets, launching local advertising, experiential events, and targeted digital marketing to drive traffic brand awareness and store awareness.

我們很高興分享我們零售店投資組合策略的進展。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。由於與我們現有的機隊相關，我們因新租賃而設定了更高的最低門檻要求，以提高我們投資組合的生產力和盈利能力。如前所述，到 2026 年，我們現有商店組合中近 25% 的商品將進行更新。我們也更新了重點市場的門市行銷力度，推出在地廣告、體驗式活動和針對性的數位行銷，以提高流量品牌知名度和門市知名度。

Providing more color on the enterprise initiatives Sam mentioned, there are four key areas of focus to impact outcomes on a go-forward basis. first, streamlined end-to-end cross-functional processes to drive operational excellence; second, assortments driven by target customer insights with a focus on the largest category opportunities; third, inventory management will be optimized through improved in-stock and productivity metrics that are directly tied to our financial goals; and lastly, activating a holistic go-to-market strategy to launch key product stories.

Sam 提到，為企業計畫提供更多色彩，有四個關鍵重點領域可以影響未來的成果。首先，簡化端到端跨職能流程以推動卓越營運；其次，由目標客戶洞察驅動的分類，重點關注最大的類別機會；第三，將透過改善與我們的財務目標直接相關的庫存和生產力指標來優化庫存管理；最後，啟動全面的市場進入策略以推出關鍵產品故事。

Now speaking to our Q3 results. Today, we reported third quarter 2024 net sales of $127.1 million, down 8.1% with gross margin expansion of 210 basis points versus last year, to 52.3%. Our reported EPS loss is $0.85 and adjusted EPS loss is $0.41. Adjustments to EPS include $6.2 million in restructuring charges related to the exit of one of our legacy fulfillment centers as announced previously, and a $10.1 million valuation allowance on our deferred tax asset. Adjusted EBITDA loss for the quarter was $6.8 million.

現在談談我們第三季的業績。今天，我們報告 2024 年第三季淨銷售額為 1.271 億美元，下降 8.1%，毛利率較去年增長 210 個基點，達到 52.3%。我們報告的 EPS 損失為 0.85 美元，調整後的 EPS 損失為 0.41 美元。每股盈餘的調整包括與先前宣布的退出我們的一個遺留履行中心相關的 620 萬美元的重組費用，以及我們的遞延稅資產的 1,010 萬美元的估值津貼。本季調整後 EBITDA 虧損為 680 萬美元。

Starting with the top line. Our Q3 2024 net sales declined to $127.1 million as fewer transactions were partially offset by higher order value fueled by higher units per transaction. Sales in the first half of the quarter were flat to last year. In the second half, unusually warmer weather impacted sales of our fall/winter goods.

從頂線開始。我們 2024 年第三季的淨銷售額下降至 1.271 億美元，原因是交易數量減少，但每筆交易數量增加帶來的訂單價值增加部分抵消了這一影響。本季上半年的銷售額與去年同期持平。下半年，異常溫暖的天氣影響了我們秋冬商品的銷售。

Direct channel sales declined 8.3% in the quarter. Mobile penetration of site visits and sales continued to increase over last year. Retail store sales declined 7.8%, driven by traffic decline, partially offset by increased conversion rates. Our women's business declined 4%, impacted by fall/winter seasonal goods. However, we continue to see strength in women's first layer up 22%, AKHG up 6% and her all-time favorite Garden Heirloom collection up nearly 70%. The Men's business declined 10%, primarily driven by colder weather categories, including flannel, outerwear, and sweaters. However, our Dry on the Fly technology and our new Souped-Up Sweats collection resonated well.

本季直接通路銷售額下降 8.3%。網站訪問量和銷售額的行動滲透率比去年繼續增加。由於客流量下降，零售店銷售額下降了 7.8%，但部分被轉換率上升所抵消。受秋冬季節商品的影響，我們的女裝業務下降了 4%。然而，我們繼續看到女性第一層的實力增長了 22%，AKHG 增長了 6%，而她一直以來最喜歡的 Garden Heirloom 系列增長了近 70%。男裝業務下降 ​​10%，主要是因為天氣寒冷，包括法蘭絨、外套和毛衣等類別。然而，我們的 Dry on the Fly 技術和新的 Souped-Up Sweats 系列引起了很好的共鳴。

Moving to gross margin. For the third quarter, our gross margin expanded 210 basis points to 52.3%, driven by improved product cost from our direct-to-factory sourcing initiatives. Having sourced through the older higher cost inventory, our gross margin year-to-date is 90 basis points higher than last year, partially offsetting the improvement in product cost was a lower AUR.

轉向毛利率。第三季度，我們的毛利率成長了 210 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。透過舊的成本較高的庫存進行採購後，我們今年迄今為止的毛利率比去年高出 90 個基點，部分抵消了產品成本的改善被較低的 AUR 所抵消。

Moving to third quarter SG&A expenses. SG&A expenses increased 1.2% to $82.9 million. As a percentage of sales at 65.2%, it deleveraged by 600 basis points to last year, driven by a decline in sales. The continued efficiencies across logistics and fulfillment center network were offset by higher fixed costs and depreciation from foundational investments.

轉向第三季的銷售、管理及行政費用。SG&A 費用增加 1.2% 至 8,290 萬美元。由於銷售額下降，其佔銷售額的比例為 65.2%，較去年下降了 600 個基點。物流和履行中心網路的持續效率被較高的固定成本和基礎投資折舊所抵消。

For the quarter, advertising expenses increased to 15.3% of sales, deleveraging by 240 basis points, driven by lower 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 100 basis points.

在銷售額下降的推動下，本季廣告費用增加至銷售額的 15.3%，去槓桿化達 240 個基點。變動費用或銷售費用（包括出境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 100 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 or general and administrative expenses increased 6.7%, deleveraging by 460 basis points, primarily from annualizing depreciation and fixed costs from strategic initiatives like the Adairsville investment initiated in Q3 of 2023, partially offset by cost savings initiatives.

有利的槓桿作用是透過優化我們的出境運輸網絡、新的包裹協議和整個履行中心網絡（尤其是在阿代爾斯維爾）的效率來推動的。固定費用或一般及管理費用增加了6.7%，去槓桿化了460 個基點，主要來自於2023 年第三季度啟動的Adairsville 投資等戰略舉措的年化折舊和固定成本，部分被成本節約舉措所抵消。

As mentioned earlier, we recognized $6.2 million in restructuring expenses from the exit of one of our legacy fulfillment centers, and a $10.1 million valuation allowance on our deferred tax asset. Our Q3 adjusted net loss was $13.8 million or $0.41 per diluted share compared to net loss of $10.5 million or $0.13 per diluted share last year. Importantly, adjusted EBITDA year-to-date is positive $5.7 million.

如前所述，我們因退出我們的一個遺留履行中心而確認了 620 萬美元的重組費用，以及我們的遞延稅資產的 1,010 萬美元的估值備抵。第三季調整後淨虧損為 1,380 萬美元，即稀釋後每股 0.41 美元，去年淨虧損為 1,050 萬美元，即稀釋後每股 0.13 美元。重要的是，年初至今調整後的 EBITDA 為正 570 萬美元。

Our inventory balance was up 33% or approximately $57 million. 97% of the inventory is in current products, and clearance inventory improved to 3% versus 4% last year. There were three main drivers of the increase year on year. The first was in-transit inventory, which accounted for a third of the increase, as we moved from agents to buying directly from factories. Another third of the increase was driven by higher inventory receipts on core year-round products to mitigate low in-stock post Black Friday week, a key learning from last year. The final third relates to fall/winter inventory where sales were impacted due to unusually warmer weather, resulting in higher seasonal inventory levels at the end of the quarter. To reiterate, we are taking necessary and prudent actions to end the year clean on inventories.

我們的庫存餘額增加了 33%，約 5,700 萬美元。 97% 的庫存是當前產品，清倉庫存從去年的 4% 提高到 3%。年成長的三個主要驅動因素。第一個是在途庫存，佔增量的三分之一，因為我們從代理商轉向直接從工廠購買。另外三分之一的成長是由於核心全年產品的庫存收入增加，以緩解黑色星期五後庫存不足的情況，這是去年的一個重要教訓。最後三分之一與秋冬庫存有關，由於天氣異常溫暖，銷售受到影響，導致季度末季節性庫存水準較高。重申一下，我們正在採取必要和審慎的行動，以在年底清理庫存。

Our capital expenditures for the quarter were $5 million versus $9.9 million in the prior year, primarily used to invest in strategic digital capabilities as per our technology road map. We ended the quarter with $44 million of outstanding debt on our line of credit. We had $9.3 million of cash and cash equivalents at the end of the quarter. Our balance sheet remains strong with liquidity of $165 million.

我們本季的資本支出為 500 萬美元，而前一年為 990 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。本季結束時，我們的信用額度上有 4,400 萬美元的未償債務。截至本季末，我們擁有 930 萬美元的現金和現金等價物。我們的資產負債表依然強勁，流動性達 1.65 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 Costco order and approximately 150 basis points of growth from the 53rd week. We expect to continue to benefit from lower year-over-year product costs. However, driven by higher promotional activity and our commitment to end the year clean on seasonal inventory levels. We are now projecting full year gross margin reduction of approximately 125 basis points versus prior year.

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 Costco 訂單的 60 個基點以及自第 53 週以來約 150 個基點的成長。我們預計將繼續受益於同比下降的產品成本。然而，在促銷活動增多以及我們承諾在年底清理季節性庫存水準的推動下。我們目前預計全年毛利率將比上年下降約 125 個基點。

Our product sourcing and innovation efforts are expected to continue to reduce product costs and expand margins for the next several years as we increase the percentage of products sourced direct from factory. This combined with the enterprise planning initiative will significantly enhance our assortment and inventory management to not just fully capture the cost benefits of the sourcing initiative but also enable gross margin expansion. We expect SG&A, excluding the sales tax contingency to deleverage by approximately 80 basis points versus prior year, as we partially offset the increase in expenses from strategic investments with additional savings from efficiencies in fixed expenses like services and contracts and benefits from our fulfillment center network optimization initiative beginning in Q4.

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幾年繼續降低產品成本並擴大利潤。這與企業規劃計劃相結合將顯著增強我們的分類和庫存管理，不僅可以充分利用採購計劃的成本效益，還可以實現毛利率的擴大。我們預計SG&A（不包括銷售稅意外開支）將比上年去槓桿化約80個基點，因為我們透過服務和合約等固定費用的效率以及我們的履行中心網絡的好處部分抵消了戰略投資費用的增加以及額外的節省從第四季開始的優化舉措。

Advertising expenses are planned to be at approximately 10% of sales as we realize savings from our move to the new ad agency and refocus spend to drive shopper conversion. Variable or selling expenses will continue to leverage by approximately 50 basis points, driven by transportation savings from diversification of outbound carriers and continuing Adairsville efficiencies. Fixed expenses, our general and administrative expenses are expected to deleverage by approximately 170 basis points versus last year as higher depreciation and fixed costs associated with strategic initiatives are partially offset with cost savings efforts.

廣告費用計劃佔銷售額的 10% 左右，因為我們透過搬遷到新的廣告代理商實現了節省，並重新調整支出以推動購物者轉換。由於出境承運人多元化帶來的運輸節省以及阿代爾斯維爾的持續效率，可變費用或銷售費用將繼續提高約 50 個基點。固定費用、一般和管理費用預計將比去年減少約 170 個基點，因為與策略性措施相關的較高折舊和固定成本被成本節約努力部分抵銷。

With that, to summarize our full year outlook, net sales of approximately $640 million. Full year gross margin reduction of approximately 125 basis points versus prior year. SG&A expenses, excluding the sales tax contingency to deleverage by approximately 80 basis points versus prior year. Our capital expenditures are on track to be reduced by more than half to approximately $23 million. Our liquidity remains strong. We expect to end the year with no debt and liquidity of over $200 million.

因此，總結我們的全年展望，淨銷售額約為 6.4 億美元。全年毛利率較上年下降約 125 個基點。SG&A 費用（不含去槓桿化的銷售稅意外費用）比上年下降約 80 個基點。我們的資本支出預計將減少一半以上，達到約 2,300 萬美元。我們的流動性仍然強勁。我們預計到今年年底，債務為零，流動性超過 2 億美元。

In closing, we are committed to taking actions to end the year clean on inventories, maximizing return from our strategic investments, delivering on structural initiatives to improve our business model. and implementing significantly enhanced enterprise planning processes to unlock growth and profitability.

最後，我們致力於採取行動，在年底清理庫存，最大限度地提高策略性投資的回報，並實施結構性舉措來改善我們的業務模式。並實施顯著增強的企業規劃流程，以釋放成長和獲利能力。

With that, we will open the call for questions.

至此，我們將開始提問。

(Operator Instructions) Dylan Carden, William Blair.

（操作員說明）迪倫卡登、威廉布萊爾。

Thanks. Sorry if I missed this. You mentioned 25% of the fleet comes due by '26. Do you have a sense of what falls under your new threshold as far as sort of the -- even if it's a range, the magnitude of closures from here?

謝謝。抱歉，如果我錯過了這個。您提到 25% 的機隊將於 26 年到期。你是否知道什麼屬於你的新閾值——即使它是一個範圍，從這裡開始的關閉程度？

Hey Dylan, yeah. So as we said, we've got about 25% that come due. We have to our process that Heena has been working on recalibrated our hurdle rates for profitability. And we're really assessing those store by store as we get into the time frame to renew or renegotiate. So we continue to have our eyes on those '25 and as we get closer to renewal dates, we're vetting those much deeper in anticipation of either renewing, closing or relocating.

嘿迪倫，是的。正如我們所說，我們大約有 25% 的款項到期。我們必須根據 Heena 一直致力於的流程重新調整我們的獲利門檻。當我們進入續訂或重新談判的時間範圍時，我們實際上正在逐家評估這些內容。因此，我們將繼續關注那些“25”，隨著續約日期的臨近，我們正在更深入地審查這些公司，以預測續約、關閉或搬遷。

Got it. And if I'm looking at the model -- as far -- I appreciate everything you've done on production and distribution efficiencies from a gross margin standpoint. What's sort of the primary driver to get you back above the line from an SG&A perspective?

知道了。如果我看這個模型——到目前為止——我很欣賞你們從毛利率的角度來看在生產和分銷效率方面所做的一切。從 SG&A 角度來看，讓您回到正常水平的主要驅動力是什麼？

Yeah, I think -- well, a couple of things I'll say. One is, I'm really pleased with the progress and traction our teams are making on those key initiatives tied to our Big Dam Blueprint. And as you know, some of it is timing in terms of when we start to realize those benefits clearly around our product development and sourcing initiative.

是的，我想——好吧，我要說幾件事。一是，我對我們的團隊在與我們的大壩藍圖相關的關鍵舉措上取得的進展和牽引力感到非常滿意。如您所知，其中一些是我們開始清楚地認識到我們的產品開發和採購計劃帶來的這些好處的時機。

We're starting to see that the logistics strategy with Adairsville. I'll take a moment just to celebrate. We're now lapping on about a year since Adairsville came online. It has processed something like 64% more units than a year ago at this time over the Black Friday weekend.

我們開始看到阿代爾斯維爾的物流策略。我會花一點時間來慶祝一下。自從阿代爾斯維爾上線以來，我們已經過去了大約一年的時間。在黑色星期五週末期間，該公司處理的商品量比一年前增加了 64%。

And at CPU -- variable CPU costs are actually exceeding what we initially targeted. It's 73% lower than the legacy fulfillment center. So a lot of those things we're starting to see come into play now. It's enabled us to rationalize our fulfillment center network, and we were able to close Dubuque, and that on an annual run rate is about $5 million in savings. So I think over the next -- candidly, over the next handful of years, you'll continue to see the benefits of that work in addition to some of the other structural things that Heena has been charged with.

在 CPU 方面，可變的 CPU 成本實際上超出了我們最初的目標。比傳統營運中心低 73%。因此，我們現在開始看到很多這樣的事情發揮作用。它使我們能夠合理化我們的履行中心網絡，並且我們能夠關閉迪比克，按年運行率計算，可節省約 500 萬美元。所以我認為，在接下來的幾年裡，坦白說，在接下來的幾年裡，除了 Heena 負責的其他一些結構性工作之外，你還會繼續看到這項工作的好處。

And over the next handful of years, I think you'll see our SG&A come closer into line where we expect it to be. And importantly, allow the benefits of these other initiatives like the product development and sourcing initiatives to really flow through to the bottom line.

在接下來的幾年裡，我認為您會看到我們的銷售、管理及行政費用 (SG&A) 更加接近我們的預期。重要的是，讓產品開發和採購計劃等其他計劃的好處真正滲透到利潤中。

Yeah. And I would add, in addition to the structural changes, which is around fulfillment center optimization as well as improving overall store portfolio profitability. We are -- our CapEx this year was half of what -- less than half of what was last year. And that's kind of the growing run rate you are looking at, which will also improve the depreciation cost that flow into SG&A. So in addition to the structural, the equilibrium of CapEx to depreciation will help with the overall SG&A costs.

是的。我想補充一點，除了結構性變化之外，還圍繞著配送中心優化以及提高整體商店組合的盈利能力。我們今年的資本支出是去年的一半，還不到去年的一半。這就是您所看到的不斷增長的運行率，這也將提高流入SG&A 的折舊成本。因此，除了結構性成本之外，資本支出與折舊的平衡也將有助於降低整體銷售、管理和管理成本。

Got it. And also, it also feels like it's a store productivity issue. I think you kind of just blessed that there in your comments. I mean, where productivity is if you start closing stores, presumably, you get some of the productivity overall fleet productivity to improve. And I would think that, that should help a not a significant amount, given where kind of sales per square foot are at present.

知道了。而且，這也感覺像是商店生產力問題。我認為你在評論中對此表示祝福。我的意思是，如果你開始關閉商店，生產力在哪裡，大概你的整體車隊生產力會得到一些提升。我認為，考慮到目前每平方英尺的銷售額，這應該不會有太大幫助。

Yeah. Like we said, we've established higher hurdle rates for when we renew, which gives us leverage and negotiating for lease renewals with options to either relocate or close as the case might be. And as we do that, it improves the overall health of the portfolio with the new sites, meeting much higher hurdle rates, the older sites that are being renewed also being held to those same standards improves our overall productivity, and our focus on omnichannel marketing for those priority markets to improve traffic to those stores.

是的。正如我們所說，我們在續約時設定了更高的門檻率，這為我們提供了籌碼和談判租約續約的機會，並可以根據情況選擇搬遷或關閉。當我們這樣做時，它改善了新網站投資組合的整體健康狀況，滿足更高的門檻率，正在更新的舊網站也遵循相同的標準，提高了我們的整體生產力，以及我們對全通路行銷的關注對於這些優先市場，以改善這些商店的客流量。

Yeah. And Dylan, I'll add to that because I want to be clear that you all understand strategically retail stores, as we've always said, are an important part of our omnichannel ecosystem. And I think that's really important to understand. Our stores since the end of 2023, all stores were four-wall profitable. This is really about, to your point, exactly as productivity is within our fleet of stores and as we begin to open new stores, we're holding them to a higher productivity hurdle rate so that we're ensuring that we're getting the returns that we need and that those investments are aligned with our longer-term strategy.

是的。迪倫，我要補充一點，因為我想澄清的是，正如我們一直所說的那樣，戰略性零售商店是我們全通路生態系統的重要組成部分。我認為理解這一點非常重要。我們的門市自2023年底以來，所有門市四面牆都獲利。就您而言，這實際上是關於我們商店的生產力，當我們開始開設新商店時，我們讓它們保持更高的生產力門檻，以便我們確保我們獲得我們需要的回報，以及這些投資符合我們的長期戰略。

So I think in that regard, we're in a really good position because we've got 65 stores today. It's not as though we've got 500 that we've got to rationalize. And we think that we'll make good progress on that front, combined with some of the things I mentioned in my prepared remarks around our go-to-market strategy and localizing some of that. I think that we'll continue to see improvements in our retail store portfolio, both as we kind of renew and/or rationalize some locations in addition to then adding some new locations with higher hurdle rates.

所以我認為在這方面，我們處於非常有利的位置，因為我們現在有 65 家商店。並不是說我們已經有 500 人了，我們必須對其進行合理化。我們認為，結合我在準備好的發言中提到的有關我們的市場進入策略和本地化其中一些內容的一些內容，我們將在這方面取得良好進展。我認為，我們將繼續看到我們的零售店組合的改進，除了添加一些具有更高門檻率的新地點之外，我們還會更新和/或合理化一些地點。

Great. Last one for me. The cool weather gear that you couldn't sell in September, October, is any of that -- can you pack any of that away? Or do you have to kind of clearance it by year end?

偉大的。最後一張給我。你在九月、十月賣不掉的涼爽天氣裝備就是其中之一——你能把其中任何一個收起來嗎？或者你必須在年底之前清理它嗎？

Yeah. No. So part of our strategy is exactly that. And again, I want to make sure that we're clear about what led to the current inventory scenario. And as Heena said, it's really three buckets.

是的。不。所以我們戰略的一部分正是如此。再次，我想確保我們清楚是什麼導致了當前的庫存情況。正如希娜所說，這實際上是三桶。

It's -- there's a timing issue relative to the in-transit bucket that we recognize ownership. That's about a third. There's a third that is tied directly to a planned early receipt of core goods because, as you know, we're writing these things further out. And last year, we went into Q4 a little lean and came out essentially out of stock, and that led to depressed inventory levels throughout Q4. And then the third is really based on our receipt of fall and winter goods. We didn't sell it in third quarter, largely because of some weather issues.

這是－我們承認所有權的運輸中的桶子存在一個時間問題。這大約是三分之一。第三個與計劃的早期收到核心貨物直接相關，因為如您所知，我們正在進一步編寫這些內容。去年，我們進入第四季時有點精簡，但基本上缺貨，這導致整個第四季的庫存水準低迷。第三個其實是基於我們收到的秋冬商品。第三季我們沒有賣掉它，主要是因為一些天氣問題。

And so as we look at going through Q4, there's two components that we're focused on. One is ensuring that the seasonal carryover of those receipts don't hurt us into next year, meaning they don't transition into clearance inventory levels. By the way, our clearance inventory levels currently are at about 3% of total, which is 100 bps less than a year ago and sequentially improved from 11% last quarter. But we want to ensure that as we go into next year, this carryover fall-winter doesn't impact our clearance level, which then continues to put further pressure on our margins. And so the seasonal things that are unique to this season, we will mark down and we'll sell through that this quarter.

因此，當我們回顧第四季度時，我們將重點放在兩個組成部分。一是確保這些收據的季節性結轉不會影響到明年，這意味著它們不會轉變為清倉庫存水平。順便說一句，我們的清倉庫存水準目前約為總庫存的 3%，比一年前減少了 100 個基點，較上季的 11% 有所改善。但我們希望確保，進入明年時，這種秋冬季結轉不會影響我們的清倉水平，從而繼續給我們的利潤率帶來進一步的壓力。因此，本季特有的季節性商品，我們將降價並在本季出售。

There is core kind of seasonal products like black down puffer jackets that whatever we don't sell through, we're going to pack those away because we buy them every season, and it's a small amount of inventory, but inventory nonetheless, that we really don't need to mark down as we move into next year. So long answer to your question, but I think important articulation is, yeah, there is goods within fall/winter that we will not have to mark down, and we'll be able to pack away for a short period of time.

有一些核心的季節性產品，例如黑色羽絨服，無論我們不賣掉什麼，我們都會把它們打包起來，因為我們每個季節都會購買它們，而且庫存量很小，但儘管如此，我們還是有庫存。當我們進入明年時，真的不需要降價。對你的問題的回答很長，但我認為重要的一點是，是的，秋季/冬季有一些商品我們不必降價，而且我們將能夠在短時間內打包。

Excellent. Thank you.

出色的。謝謝。

This concludes our question-and-answer session and Duluth Trading's third-quarter financial results conference call. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節和德盧斯貿易公司第三季財務業績電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。