Duluth Holdings Inc (DLTH) 2025 Q2 法說會逐字稿

Good day, and welcome to the Duluth Holdings Inc. Second-quarter 2025 conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加Duluth Holdings Inc. 2025年第二季電話會議。 （操作員指示）請注意，本次會議正在錄製中。

I would now like to turn the conference over to Mr. Chris Steffes with Duluth Investor Relations. Please go ahead, sir.

現在我想把會議交給德盧斯投資者關係部的克里斯·史蒂芬斯先生。先生，請講。

Thank you, and welcome to today's call to discuss Duluth Trading second quarter financial results. Our earnings release, which was issued this morning, is available on our Investor Relations website at ir.duluthtrading.com under News Releases. I'm here today with Stephanie Pugliese, President and Chief Executive Officer; and Heena Agrawal, Senior Vice President and Chief Financial Officer.

謝謝大家，歡迎大家參加今天的電話會議，討論Duluth Trading第二季的財務表現。我們今天上午發布的收益報告可在我們投資者關係網站ir.duluthtrading.com的「新聞稿」欄位下查閱。今天，我和總裁兼執行長Stephanie Pugliese以及資深副總裁兼財務長Heena Agrawal一同出席了會議。

On today's call, management will provide prepared remarks and then open the call for questions. Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements, which can be identified by the use of words such as estimate, anticipate, expect and similar phrases.

在今天的電話會議上，管理階層將提供準備好的發言稿，然後開始提問。在開始之前，我想提醒大家，今天電話會議上的評論將包含前瞻性陳述，這些陳述可以透過使用「估計」、「預期」、「期望」等類似詞語來識別。

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.

前瞻性陳述本質上涉及估計、預測、目標、預報和假設，並受風險和不確定性的影響，可能導致實際結果與前瞻性陳述中表達的結果有重大差異。

Such risks and uncertainties include, but are not limited to, those that are described in our most recent annual report on Form 10-K and other SEC filings as applicable. These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events. And with that, I will turn the call over to Stephanie.

此類風險和不確定因素包括但不限於我們最近提交的10-K表格年度報告以及其他適用的美國證券交易委員會文件中所述的風險和不確定因素。這些前瞻性陳述僅代表截至本次電話會議召開之日的觀點，不應被視為對未來事件的預測。接下來，我將把電話會議交給Stephanie。

Good morning, everyone, and thank you for joining us today. We are encouraged by our second quarter results, demonstrating positive momentum in our initial turnaround efforts. Our team has worked tirelessly and made improvements across several critical areas of the business. This includes promotional reset, cost control, tariff mitigation and a disciplined approach to inventory management.

大家早安，感謝大家今天與我們分享。我們對第二季的業績感到鼓舞，這反映了我們初步扭轉局面的努力中展現出的積極勢頭。我們的團隊不懈努力，在業務的幾個關鍵領域取得了改進，包括促銷重置、成本控制、關稅降低以及嚴謹的庫存管理方法。

Our strategic and operational efforts have begun to yield tangible benefits leading to an enhanced gross margin, reduced expenses and lower inventory levels, which played out in our Q2 results. As we reduced the depth of promotional activity, we anticipated that our top line revenue would contract year-over-year. Yet despite a sales decline of 7% versus last year, we delivered gross margin improvement and SG&A leverage, which drove a $1.5 million increase in adjusted EBITDA, reaching $12 million or 9% of sales.

我們的策略和營運努力已開始產生實際的效益，毛利率提高、費用減少、庫存水準降低，這些都體現在我們第二季的業績中。由於我們減少了促銷活動的力度，我們預計營收將年減。然而，儘管銷售額較去年下降了7%，但我們仍實現了毛利率的提升和銷售、一般及行政費用（SG&A）槓桿的提升，這推動調整後息稅折舊攤銷前利潤（EBITDA）增加了150萬美元，達到1200萬美元，佔銷售額的9%。

We concluded the quarter with a strong liquidity of $73 million and a 12% reduction in inventory compared to last year, meeting our expectations of sequential inventory improvement each quarter. Let me elaborate further on each of the areas of improvement. Starting with an update on the resetting of our promotional cadence.

本季結束時，我們的流動性強勁，達到7,300萬美元，庫存較去年同期下降12%，符合我們每季庫存較上季改善的預期。讓我進一步闡述每個改進領域。首先，我想先介紹一下我們調整促銷節奏的最新情況。

We have reduced the depth of our promotions to strategically elevate full-price sales increase our average unit retails and drive improved profitability. We are intentionally shifting our focus towards higher quality sales. At the same time, we know that we are operating in a dynamic environment. We will continue to test, read and react to pricing initiatives throughout the second half of the year, to meet customers' needs and manage higher profitability.

我們已降低促銷力度，旨在策略性地提升全額銷售，從而提高平均零售額並提升獲利能力。我們正積極將重點轉向更高品質的銷售。同時，我們深知自身營運環境瞬息萬變。下半年，我們將繼續測試、解讀並回應定價策略，以滿足客戶需求並實現更高的獲利能力。

As mentioned last quarter, we also quickly began to right size the cost structure and alleviate pressure from tariffs. I am pleased to report that we are on track to realize $10 million in cost savings in fiscal 2025. While we are simplifying the cost structure, we have also continued to invest time and energy to improve processes that optimize productivity now and in the future.

如上季所述，我們也迅速著手優化成本結構，並減輕關稅壓力。我很高興地報告，我們預計在2025財年實現1000萬美元的成本節約。在簡化成本結構的同時，我們也持續投入時間和精力，改善流程，以優化目前和未來的生產力。

Our ongoing commitment to inventory management and enterprise planning has led to enhancements in our operational and planning processes. This end-to-end cross-functional initiative has resulted in the 12% reduction in Q2 ending inventory that I mentioned earlier, primarily due to our emphasis on rightsizing inventory receipts. We expect that these efforts, combined with SKU and style count reductions in future seasons will lead to better use of cash, stronger inventory turns and improved margins.

我們持續致力於庫存管理和企業規劃，這促進了我們的營運和規劃流程的改進。這項端到端的跨職能舉措已使我之前提到的第二季期末庫存減少了12%，這主要歸功於我們注重合理調整庫存收貨量。我們預計，這些舉措，加上未來季度SKU和款式數量的減少，將帶來更有效率的現金利用、更強勁的庫存週轉率和更高的利潤率。

Now let me provide an update on our approach to mitigating tariffs, focusing on short-term actions that do not compromise the long-term integrity of our products. In addition to working closely with our manufacturing base, and finding areas of SG&A to offset margin impact. In fall 2025, we have selected targeted products for retail increases.

現在，請容許我介紹我們降低關稅的最新措施，並專注於不損害我們產品長期完整性的短期措施。此外，我們還將與我們的製造基地密切合作，並尋找能夠抵銷銷售、一般及行政費用（SG&A）影響的領域。 2025年秋季，我們已選定了零售額有望成長的目標產品。

We did this while recognizing the need for a balance of styles that are lower priced and continue to be a great value for our customers, all with our uncompromising eye on maintaining quality. And while we are reducing deeper discounted promotions, we have implemented buy more and save discounts on some of our key programs like underwear and Longtail T. We believe that this will maintain our quality standards, help to offset the increase in cost of goods and still allow our customers to realize the value that we offer.

我們在實施這項措施的同時，也意識到需要在價格更低的同時，繼續為顧客提供物超所值的款式之間取得平衡，同時我們始終致力於維持產品品質。雖然我們減少了大幅折扣的促銷活動，但我們對內衣和長尾T恤等一些主要產品推出了買多省的優惠。我們相信，這將維持我們的品質標準，有助於抵銷商品成本的上漲，同時仍能讓顧客感受到我們所提供的價值。

Now let's move on to our performance in the second quarter, starting with some of our product highlights. Duluth men's bottoms drove higher profitability as we pulled back on promotional depth delivering more than a 10% increase in AUR as we continue to expand the offering in men's tops, new items like the [BBQ] shirt in standard fit, Breezeshooter untucked, and Drumlin Slub cotton shirts resonated with our customers.

現在，讓我們回顧一下我們第二季的業績，首先介紹一些產品亮點。 Duluth 男士下裝的盈利能力有所提升，因為我們減少了促銷力度，導致平均銷售額增長了 10% 以上。我們繼續擴大男士上衣的供應，標準版型 [BBQ] 襯衫、Breezeshooter 不塞進褲腰的襯衫和 Drumlin Slub 棉襯衫等新品引起了顧客的共鳴。

Our Mother's Day Print collection in women's was our most successful print launch ever, with our Heirloom Bibs complemented by matching garden accessories. New product lines such as Artisan Hemp, a durable yet breathable hemp and organic cotton blend, and feather-light Chick-Nic shirts were well received and speak to the commitment we have to comfort durability and functionality in all that we do.

我們推出的女裝母親節印花系列是我們迄今為止最成功的印花系列，Heirloom 圍兜和配套的園藝配件也相得益彰。 Artisan Hemp（一種耐用透氣的大麻和有機棉混紡面料）和輕盈如羽毛的 Chick-Nic 襯衫等新產品系列廣受好評，彰顯了我們對舒適、耐用和功能性的承諾。

And lastly, AKHG grew by more than 10% in both men's and women's, driven by better in-stock position in key items like stone run pants. We also saw positive responses to new Wonderwear performance shorts, Tun-Dry and the After Sweat collection. Now turning to our marketing efforts for the quarter. We saw success with a full funnel approach highlighted by our Q2 Father's Day campaign. We focused on both awareness and consideration with this campaign.

最後，AKHG 男裝和女裝的銷售額均增加了 10% 以上，這得益於 Stone Run 長褲等關鍵單品的庫存狀況改善。我們也看到了對新款 Wonderwear 高性能短褲、Tun-Dry 和 After Sweat 系列的正面反應。現在來談談我們本季的行銷工作。我們採用的全漏斗行銷策略取得了成功，這一點在第二季的父親節行銷活動中尤為突出。我們在此次行銷活動中專注於提升知名度和購買意願。

And our Good Morning America Gift for Dads feature drove better awareness than our similar spot during last year's peak season. Finally, this quarter, we launched the Big Dam van, a mobile retail experience, enabling Duluth to be more visible at events throughout the country including store openings. Moving on to our retail portfolio. Our store sales grew 5% year-on-year. This success was driven by improved traffic trends combined increased conversion rates and higher average order values.

我們的「早安美國爸爸禮物」廣告比去年旺季的類似廣告提升了知名度。最後，本季我們推出了「大壩」行動購物車，這是一種行動零售體驗，使德盧斯在全國各地的活動（包括門市開業）上更加引人注目。接下來是我們的零售業務。我們的門市銷售額較去年同期成長了5%。這一成功得益於客流量趨勢的改善、轉換率的提升以及平均訂單價值的提高。

Store marketing efforts were successful in generating awareness and driving traffic through tactics like geo-targeted ads and connected TV. We closed one underperforming store this quarter and have renewed leases on 2 stores that are meeting our higher profit hurdle rate. Further, we are excited to open our first new store since 2021 in Kansas City, Kansas and Maple Grove, Minnesota.

門市行銷工作透過地理定位廣告和連網電視等策略，成功提升了品牌知名度並增加了客流量。本季度，我們關閉了一家業績不佳的門市，並續簽了兩家符合我們更高利潤預期的門市的租約。此外，我們很高興在堪薩斯州堪薩斯城和明尼蘇達州楓樹林開設了自2021年以來的首家新店。

These are priority markets for us and we are thrilled to see these stores come to life and join our improving retail portfolio in the coming weeks. And speaking of fall, we have begun the process of tightening our assortment and have reduced our SKU count compared to the prior year with a more focused collection. Our business is built on a foundation of core products strengthened by innovative new solutions designed to solve our customers' problems. We are revitalizing our product and marketing strategies to reflect the true essence of our brands.

這些是我們的重點市場，我們很高興看到這些門市在未來幾週內開業，加入我們不斷完善的零售組合。說到秋季，我們已經開始精簡產品線，與去年相比減少了SKU數量，並推出了更專注的產品系列。我們的業務建立在核心產品的基礎上，並透過旨在解決客戶問題的創新解決方案來增強其競爭力。我們正在重塑產品和行銷策略，以體現我們品牌的真正精髓。

For example, this month, we are relaunching core men's and women's denim that is built for greater durability and comfort, along with adding new products like the Seawool collection, which is naturally thermo regulating, wicks away moisture and controls odor. These products provide the kind of functional apparel our customers depend on as the seasons change. We know that the second half of the year is our most important for customer engagement, revenues and profitability.

例如，本月我們將重新推出男女核心牛仔系列，旨在提升耐用性和舒適度，同時還將推出Seawool系列等新品，該系列具有天然的溫控、吸濕排汗和控臭功能。這些產品能夠滿足客戶在季節更替時對功能性服裝的需求。我們深知，下半年對於客戶參與度、收入和獲利能力至關重要。

As we lead up to our peak season, our focus remains on continuing the turnaround efforts and leading with a sense of urgency. Through rigorous preparation and alignment of all functions in the business, including marketing and promotional productivity, inventory positioning and customer communication, our goal is to not only meet but exceed our customers' expectations during this critical period.

隨著旺季臨近，我們的工作重點仍是繼續努力扭轉頹勢，並保持緊迫感。透過嚴謹的準備和協調業務各職能部門，包括行銷和促銷效率、庫存定位和客戶溝通，我們的目標是在這段關鍵時期不僅滿足客戶期望，更要超越客戶的期望。

In closing, we are pleased with our Q2 performance and the progress we have made so far on the first phase of our turnaround efforts, and I am committed to building on this momentum. In the near term, our focus remains on simplifying the business, managing costs, mitigating the ongoing impacts of tariffs and most importantly, delivering on our promise to customers with excellence.

最後，我們對第二季度的業績以及第一階段扭虧為盈舉措迄今取得的進展感到滿意，我將致力於延續這一勢頭。短期內，我們的重點仍將放在簡化業務、管理成本、減輕關稅的持續影響，以及最重要的，以卓越的品質兌現對客戶的承諾。

Looking ahead, we acknowledge the significant work that is to come in the second half of this year and in our turnaround plan. We will continue to leverage our foundational work in product sourcing optimizing our fulfillment center network and rationalizing our store portfolio. In addition, we are refocusing our marketing efforts and product assortment to celebrate the self-reliant spirit of our customers.

展望未來，我們深知下半年以及重振計畫中將面臨許多重要工作。我們將繼續利用在產品採購方面的基礎工作，優化我們的配送中心網絡，並合理化我們的門市組合。此外，我們正在重新調整行銷工作和產品組合，以弘揚客戶的自力更生精神。

Moving on to 2026, we are reducing our SKUs and refining our assortment. This focused approach will enable us to emphasize the core products that distinguish the Duluth brand. I am confident that in the long term, focusing on Duluth Trading's core strengths customer engagement with our brand, solution-based products and product innovation, and excellent customer service in our omnichannel environment will create shareholder value and ultimately restore the company to profitable growth and success.

展望2026年，我們將減少SKU數量並優化產品組合。這種專注的策略將使我們能夠突顯Duluth品牌的核心產品。我相信，從長遠來看，專注於Duluth Trading的核心優勢——客戶與我們品牌的互動、基於解決方案的產品和產品創新，以及在全通路環境中提供卓越的客戶服務——將創造股東價值，並最終幫助公司恢復盈利增長和成功。

Now I'll hand it over to Heena, to discuss our financial results for the second quarter and our outlook for fiscal year 2025.

現在我將把時間交給 Heena，討論我們第二季的財務表現以及對 2025 財年的展望。

Thanks, Stephanie, and good morning. Echoing Stephanie's comments, we are pleased with our Q2 results, which represent an important step forward in our turnaround efforts. As stated on our last two calls, our primary focus this year is to reset our promotional cadence to restore price integrity, improve inventory management and strengthen operational execution. In April, as new tariffs were announced, we responded proactively with mitigation actions.

謝謝，Stephanie，早安。與Stephanie的評論一致，我們對第二季的業績感到滿意，這代表我們扭轉頹勢的努力邁出了重要一步。正如我們前兩次電話會議所述，我們今年的首要任務是調整促銷節奏，以恢復價格的完整性，改善庫存管理，並加強營運執行力。 4月份，隨著新關稅的公佈，我們積極採取了緩解措施。

In addition, we initiated cost reduction efforts and implemented steps to manage cash flow and liquidity during this period of macroeconomic uncertainty. I am proud of the team's unwavering commitment to the goals we established at the start of this year and their agility in developing solutions to mitigate macro headwinds. Now to provide an update on our second quarter results and progress in these areas.

此外，在宏觀經濟不確定的時期，我們啟動了成本削減措施，並採取措施管理現金流量和流動性。我為團隊堅定不移地致力於我們今年年初設定的目標，並靈活地制定解決方案以應對宏觀經濟逆境感到自豪。現在，我將更新我們第二季的業績以及在這些領域的進展。

Today, we reported second quarter 2025 net sales of $131.7 million, down 7%, with gross margin expansion of 240 basis points versus last year to 54.7% and SG&A leverage, driven by cost reductions. Our reported EPS is $0.04, and adjusted EPS is $0.03 favorable to last year by $0.05. Adjustments to EPS include restructuring charges of $0.7 million net of tax and tax valuation allowance of negative $0.9 million.

今天，我們公佈了2025年第二季淨銷售額1.317億美元，下降7%，毛利率較去年同期增長240個基點至54.7%，且由於成本削減，銷售、一般及行政管理費用（SG&A）槓桿率有所下降。我們公佈的每股收益為0.04美元，調整後每股收益為0.03美元，較去年同期上漲0.05美元。每股盈餘調整包括稅後70萬美元的重組費用和負90萬美元的稅務估值準備金。

Adjusted EBITDA for the quarter increased by $1.5 million versus last year to $12 million or 9.1% of sales. Starting with the top line as we reset our promotional depth to drive greater profitability, our Q2 net sales declined 7% versus last year and declined 9.8%, excluding the wholesale shipment shift from Q1 to Q2 this year.

本季調整後EBITDA較去年同期成長150萬美元，達1,200萬美元，佔銷售額的9.1%。首先從營收來看，由於我們調整了促銷力道以提升獲利能力，第二季淨銷售額較去年同期下降7%，若不計今年批發出貨量從第一季轉移到第二季的影響，則下降了9.8%。

Direct channel sales, excluding wholesale, saw an 18% decrease primarily due to a decline in web traffic resulting from the promotional reset partially offset by a higher average order value. Mobile sales penetration continued to improve, increasing by 100 basis points. Retail store sales increased 5.3%, driven by improved traffic trends from targeted marketing efforts, increased conversion rates and an optimized inventory allocation strategy leading to improved in-stock levels.

不包括批發的直銷通路銷售額下降了18%，主要原因是促銷活動重置導致網路流量下降，但平均訂單金額上升部分抵消了這一影響。行動端銷售滲透率持續提升，成長了100個基點。零售店銷售額成長了5.3%，這得益於精準行銷活動帶來的流量趨勢改善、轉換率提升以及優化的庫存配置策略，從而提升了庫存水準。

In addition, store profitability improved as we reduced promotional depth driving higher average unit retail and average order values. Duluth's men's sales declined by 8% and women's declined by 11.3% as we reset promotions while AKHG grew by 11.4%, with double-digit growth across both men's and women's, driven by improved inventory availability. Effective inventory management led to improved in-stock rates and profitability improved across channels and businesses with shallower promotions.

此外，由於我們降低了促銷力度，從而提高了平均單位零售額和平均訂單價值，門市獲利能力也得到了提升。由於我們重新調整了促銷力度，Duluth 的男裝銷售額下降了 8%，女裝銷售額下降了 11.3%。而 AKHG 的銷售額成長了 11.4%，男裝和女裝均實現了兩位數成長，這得益於庫存可用性的提升。有效的庫存管理提高了庫存率，並降低了促銷力度，從而提升了各通路和業務的獲利能力。

Gross profit margin rate for the quarter was 54.7%, expanding by 240 basis points compared to last year, driven by an 8% increase in average unit retail and a greater proportion of full price sales as we reset promotions. Gross margin continues to improve due to two factors: a rebalancing of promotions to restore price integrity by reducing the depth of discounts and the flow-through of lower product costs resulting from our direct-to-factory sourcing initiative.

本季毛利率為54.7%，較去年同期成長240個基點，主要得益於平均零售額成長8%，以及我們重新調整促銷策略後全額銷售佔比的提升。毛利率持續提升得益於兩個因素：一是重新平衡促銷策略，透過降低折扣力度來恢復價格的完整性；二是工廠直採計畫帶來的產品成本降低。

The impact of tariffs on Q2 margin was negligible and will be felt more strongly in the second half of the year. To offset the impact of tariff costs, we began implementing our targeted price increases at the end of July, in addition to vendor negotiations and inventory receipt management. SG&A spend was $68.8 million, which is $5.2 million or 7.1% lower than last year.

關稅對第二季利潤率的影響微乎其微，下半年將更加明顯。為了抵​​銷關稅成本的影響，我們在7月底開始實施目標價上調，並加強了供應商談判和庫存收據管理。銷售、一般及行政管理（SG&A）支出為6,880萬美元，較去年同期減少520萬美元，降幅7.1%。

SG&A as a percentage of sales improved by 10 basis points to 52.2% compared to last year. Advertising came in at 8.9% of sales, deleveraging by 60 basis points. The improved SG&A leverage was driven by reduced outbound shipping costs and lower fixed overhead expenses, including personnel and depreciation.

銷售、一般及行政費用佔銷售額的比重較去年同期提升10個基點，達52.2%。廣告費用佔銷售額的8.9%，去槓桿率降低60個基點。銷售、一般及行政費用槓桿率的改善得益於出貨運輸成本的降低以及包括人員和折舊在內的固定間接費用的降低。

As Stephanie mentioned, we are on track to deliver $10 million in cost reductions this year as we rightsize our expense structure. Inventory at the end of the quarter was $148.1 million, a decrease of $20.7 million or 12% compared to the prior year. In addition, store in-stock levels increased by 200 basis points year-over-year. These improvements were driven by enhanced processes like enterprise planning, which optimized inventory receipts and inventory positioning to drive greater availability.

正如Stephanie所說，透過調整支出結構，我們今年可望實現1,000萬美元的成本削減。本季末庫存為1.481億美元，較上年減少2,070萬美元，降幅12%。此外，門市庫存水準年增了200個基點。這些改進得益於企業規劃等流程的改進，這些流程優化了庫存收貨和庫存定位，從而提高了庫存可用性。

We have made progress in managing receipts with year-round inventory levels currently 6% lower than last year. a healthy level to support appropriate depth in our core products. As Stephanie mentioned, we have also reduced SKUs and inventory levels for the upcoming fall/winter season.

我們在收貨管理方面取得了進展，目前全年庫存水準比去年下降了6%，處於健康的水平，足以支持我們核心產品的適當深度。正如Stephanie所提到的，我們也為即將到來的秋冬季節減少了SKU數量和庫存水準。

At the end of the quarter, our inventory mix included 78% in current products and 22% in clearance goods compared to 11% in clearance last year, primarily due to slower-than-expected sell-throughs of our spring/summer merchandise. To address this, we activated the Big Dam clearance event, reducing our clearance inventory to 16% of the total as of the first week of September.

截至本季末，我們的庫存結構中，現有商品佔78%，清倉商品佔22%，而去年同期清倉商品佔11%，這主要是由於春夏商品的銷售速度低於預期。為了解決這個問題，我們啟動了「大壩」清倉活動，截至9月第一周，清倉庫存已降至總庫存的16%。

For spring/summer 2026, we've adopted a more sustainable approach, reducing our SKU count by over 20%, creating a more focused and relevant assortment to ultimately drive higher sell-throughs. Our capital expenditures for the first half were $9.7 million compared to $8 million in the prior year with the increase in spend primarily driven by our two new stores set to open this month.

2026春夏系列，我們採取了更永續的策略，將SKU數量減少了20%以上，打造了更具針對性和針對性的商品組合，最終推動了更高的銷售量。上半年我們的資本支出為970萬美元，而去年同期為800萬美元，支出的成長主要得益於我們本月即將開幕的兩家新店。

We ended the quarter with net liquidity of $73.3 million and net debt of $26.7 million. Our cash and cash equivalents were $5.7 million with borrowing on our credit facility at $32.5 million. As we actively managed our inventory levels, we cut our borrowing in half versus prior quarter. As communicated last quarter, we anticipate that our peak borrowings for the year are behind us.

本季末，我們的淨流動資金為 7,330 萬美元，淨債務為 2,670 萬美元。我們的現金及現金等價物為 570 萬美元，信貸額度為 3,250 萬美元。由於我們積極管理庫存水平，借款金額較上一季減少了一半。如上季所述，我們預計今年的借款高峰已經過去。

Now turning to our outlook for fiscal year 2025. We are maintaining our fiscal year 2025 financial guidance, the adjusted EBITDA range of $20 million to $25 million considers several factors: First, mitigating the impact of tariffs with price actions, vendor negotiations and management of the timing of inventory receipts. Next, reducing expenses to protect against top line headwinds from dialing back discount levels and to align our overall expense structure with the current scale of our business.

現在來談談我們對2025財年的展望。我們維持2025財年的財務指引不變，調整後的EBITDA在2,000萬美元至2,500萬美元之間，這主要考慮了以下幾個因素：首先，透過價格調整、供應商談判以及庫存收貨時間管理來降低關稅的影響。其次，降低費用，以抵禦因折扣水準降低而帶來的營收逆風，並使我們的整體費用結構與當前業務規模保持一致。

Lastly, further integrating our planning processes and financial discipline to drive a higher return on our investments in inventory and assets like the fulfillment center network and store portfolio. Further elaborating on tariffs, we now anticipate an impact to the current year of approximately $15 million based on the last announced rates by country.

最後，進一步整合我們的規劃流程和財務紀律，以提高我們在庫存和資產（例如配送中心網路和門市組合）方面的投資報酬率。進一步闡述關稅問題，根據各國最新公佈的稅率，我們預期關稅將對本年度產生約1500萬美元的影響。

The average tariff rate based on country of origin and timing of receipts is approximately 12% this fiscal. The impact of tariff costs in the first half of the year was negligible and will primarily hit the second half. We have offset the majority of these additional costs by strategically increasing prices in select categories.

本財年，基於原產國和收貨時間的平均關稅稅率約為12%。上半年關稅成本的影響微乎其微，主要影響將集中在下半年。我們已透過策略性地提高部分品類的價格，抵銷了大部分額外成本。

These price increases implemented in late July and early August are currently meeting sales expectations in terms of elasticity. In addition, we have partnered with our vendors to share in the cost impact and continue to actively manage the timing of inventory receipts. Speaking of SG&A, we've implemented over $10 million in cost reductions this year, while maintaining our investment in marketing as a percent of sales.

7月底和8月初實施的漲價措施目前在彈性方面符合銷售預期。此外，我們已與供應商合作，分擔成本影響，並繼續積極管理庫存收貨時間。說到銷售、一般及行政費用 (SG&A)，我們今年已削減了超過1000萬美元的成本，同時保持了行銷投資佔銷售額的一定比例。

We are strategically optimizing our organizational expenses in line with the current size of our business, effectively managing the revenue impact of our pricing and promotional adjustments mitigating tariff impacts and balancing the short- and long-term needs of the business. Regarding our balance sheet and capital expenditures.

我們正在根據當前業務規模策略性地優化組織支出，有效管理定價和促銷調整對收入的影響，減輕關稅影響，並平衡業務的短期和長期需求。關於我們的資產負債表和資本支出。

First, we continue to project inventory levels to normalize in the second half of the year due to a rebalancing of sales and inventory receipts. We expect year-end inventory to decrease by double digits compared to the prior year. This reduction and rightsizing of receipts ensures that we are past our peak borrowing levels.

首先，由於銷售額和庫存收入的重新平衡，我們預計下半年庫存水準將恢復正常。我們預計年底庫存將較上年同期下降兩位數。庫存的減少和收入的合理調整確保我們已度過借貸高峰期。

Second, we are maintaining our capital expenditure plan at approximately $17 million for the year. This includes funding for the two new stores opening this month, along with Manhattan omni fulfillment software and regular maintenance. Finally, our asset-based lending facility continues to enable higher flexibility in maintaining liquidity and access to cash.

其次，我們將本年度的資本支出計畫維持在約1700萬美元。這筆資金將用於本月開幕的兩家新店，以及曼哈頓Omni物流軟體的採購和定期維護。最後，我們的資產抵押貸款工具將繼續為保持流動性和現金獲取提供更高的靈活性。

To summarize, we are encouraged by the strides we are making in restoring price integrity, improving inventory management and strengthening operational execution. These initiatives will allow us to fully leverage the benefits of our strategic and structural initiatives over time.

總而言之，我們在恢復價格完整性、改善庫存管理和加強營運執行方面取得的進展令人鼓舞。這些舉措將使我們能夠充分利用策略和結構性舉措的優勢。

We are taking holistic actions to counteract the impact of tariffs, making decisive moves to optimize our expense structure and under Stephanie's leadership, focusing on our product assortment and brand marketing investments. With that, we will now open the call for questions.

我們正在採取全面措施應對關稅的影響，並果斷優化支出結構，並在Stephanie的領導下，專注於產品組合和品牌行銷投資。現在，我們將開始提問環節。

(Operator Instructions)

（操作員指示）

Jonathan Komp, Baird.

喬納森康普，貝爾德。

Yeah, hi, good morning. Thank you, Stephanie, I want to follow up, if you could maybe share more on some of the specific metrics that you're looking at and the team is looking at as you decide the appropriate level of pullback in your promotional activity. And then as you look forward into the key selling period in fall and surrounding holiday, just any thoughts on your confidence level of being able to maintain more discipline on the promotional side given some of the results you saw here in the quarter?

是的，早安。謝謝你，Stephanie。我想跟進一下，在決定促銷活動的適當縮減幅度時，你能否分享一些你和團隊正在關注的具體指標？然後，展望秋季和假日前後的關鍵銷售期，考慮到本季取得的一些業績，你對在促銷方面保持更嚴格的紀律性有何信心？

Sure. So let me start with the question around the key metrics that we're looking at. Gross margin dollars are the primary measure that we are looking at because we know, John, that obviously that drives all of the dollars then below that line on the P&L through the discipline that we've been able to very quickly enact in the business around SG&A leverage, it's given us the ability to continue what we started in first quarter around the promotional pullback knowing that there will be a contraction of sales, but ultimately, the profitability is our first and foremost objective for this year to get us to that -- the EBITDA that we just reinforced on the bottom line for the year.

當然。那麼，我先從我們正在關注的關鍵指標開始。毛利率是我們關注的主要指標，因為我們知道，約翰，這顯然會導致所有收入都低於損益表上的毛利率，因為我們在業務中能夠非常迅速地控制銷售、一般及行政費用槓桿，這使我們能夠繼續在第一季度開始的促銷活動縮減措施，儘管我們知道銷售額會萎縮，但最終，盈利能力是我們今年的首要利潤，我們強調了全年利潤。

In terms of as we look forward and the confidence that we have in the fourth quarter. As we said in first quarter, actually and reiterated today, we are seeing success in the pullback of the depth of promotion we are still -- in terms of the frequency of promotion. We're still pretty consistent to where we've been in the past. So the ultimate gross margin dollars that we're generating are due to the pullback in depth. And that's the plan that we have as we go forward for the balance of this quarter and then into fourth quarter. And the fact that we've seen the success so far this year in the first two quarters is what gives us a lot of confidence there.

就我們對第四季度的展望和信心而言，正如我們在第一季所說的，實際上也是今天重申的，我們在降低促銷深度方面取得了成功，就促銷頻率而言，我們仍然保持著相當穩定的水平。因此，我們最終產生的毛利率歸功於促銷深度的降低。這就是我們為本季剩餘時間以及第四季制定的計劃。今年前兩個季度迄今為止的成功，給了我們很大的信心。

Yes, that's encouraging to hear. Maybe a question then on gross margin. Just given some of the dynamics with the tariff impacts ramping up, but obviously, some benefits from the activity you just mentioned and then the pricing that you're putting in place. Just any further color on the ability to continue the gross margin rate expansion and especially in the fourth quarter, I know it looks like quite an easy comparison, but just any more color on the back half gross margin rate expectation?

是的，聽到這個消息令人鼓舞。接下來我想問毛利率。考慮到關稅影響不斷上升帶來的一些動態，但顯然，您剛才提到的舉措以及您正在實施的定價策略也帶來了一些好處。能否進一步說明毛利率能否繼續擴張，尤其是在第四季度，我知道這看起來很容易比較，但能否進一步說明下半年毛利率的預期？

Yes, Jonathan, this is Heena. I'll take that question. So we implemented price increases in two waves, starting July 25 and August 8. And what we are seeing so far is it is meeting our sales expectations from a price and unit elasticity standpoint. So we are going to continue to mitigate the impact of tariffs on the -- from our pricing activities. We've also had vendor negotiations to fulfill some of the cost increases.

是的，喬納森，我是希娜。我來回答這個問題。我們分兩輪漲價，分別從7月25日和8月8日開始。目前來看，從價格和單位彈性的角度來看，價格上漲符合我們的銷售預期。因此，我們將繼續透過定價活動來減輕關稅的影響。我們也與供應商進行了談判，以彌補部分成本上漲。

And then we are managing the timing of our receipts. In addition to that, the SG&A cost reductions are definitely helping from an overall P&L standpoint. So we feel very good about the second half and our ability to meet our gross margin requirements. There will be some differentiation between Q3 and Q4, we'll see a bigger ramp up in Q4 versus in Q3 where these tariff impacts are just beginning to take hold.

然後，我們正在管理收款時間。此外，從整體損益表的角度來看，銷售、一般及行政費用的降低無疑有所幫助。因此，我們對下半年以及我們滿足毛利率要求的能力感到非常樂觀。第三季和第四季之間會有一些差異，與關稅影響才剛開始顯現的第三季相比，第四季的增幅將更大。

Okay. Great. Two other questions for me. Just on the SG&A, the cost savings that you're targeting, the $10 million to be achieved in fiscal 2025. Any further color just how much you achieved in the second quarter and then how the savings will ramp here looking forward?

好的。太好了。還有兩個問題。關於銷售、一般及行政費用（SG&A），也就是您設定的成本節約目標，也就是2025財年達到1,000萬美元。您能進一步說明一下您在第二季實現了多少，以及未來成本節省將如何成長嗎？

Yes. I mean what we can say is the $10 million is primarily coming from two areas. One is headcount that we had announced on June 4 and then the other is controllable expenses like consulting, travel and also some depreciation and amortization. So we started seeing the benefits of that in Q2. I would say we are about one-third of the way there already. So we feel very good about the $10 million for the rest of the year -- for the entire year.

是的。我的意思是，我們可以說這1000萬美元主要來自兩個方面。一是我們在6月4日宣布的員工人數，二是可控支出，例如諮詢、差旅以及一些折舊和攤提。所以我們在第二季開始看到這些支出帶來的好處。我想說我們已經完成了大約三分之一。所以我們對今年剩餘時間——也就是全年——這1000萬美元的收益感到非常樂觀。

Okay. And then last question for me. Just stepping back, bigger picture. As you think about reestablishing appropriate margin targets for the business, just I'm curious what you'd need to see in order to be able to share more detail on an appropriate levels of margin for the business or longer-term expectations around the profitable sales base you need to get back to more reasonable annual profitability levels?

好的。最後一個問題。退一步來說，從更大的角度來看。當您考慮重新設定合適的業務利潤率目標時，我很好奇您需要看到什麼才能更詳細地分享關於業務利潤率的合理水平，或者關於盈利銷售基礎的長期預期，以便恢復到更合理的年度盈利水平？

So I'll take that one, Jon. I think the primary thing for the balance of this year is the -- two things, really, are the manageable expenses, as Heena just talked about a moment ago, and the resetting of price integrity. And part of that resetting of price integrity is certainly the promotional cadence that we just talked about. But the other part is the inventory management and within inventory management, SKU and style productivity. So the balance of this year, as we know, we are still in the process of rightsizing that inventory.

喬恩，我來回答這個問題。我認為今年餘下時間的首要任務是——實際上有兩件事：一是可控的開支，正如希娜剛才提到的；二是價格誠信的重塑。價格誠信的重塑部分當然包括我們剛才提到的促銷節奏。但另一部分是庫存管理，以及庫存管理中的SKU和款式效率。所以，正如我們所知，今年餘下時間我們仍在調整庫存規模。

As we move forward into 2026, as we talked about in the last quarter's call, we are planning and actually executing to a 20% decrease in SKU and style count. So as we get to that point where our assortment is rationalized, our expense plan, if you will, is rationalized. That's where we will have the ability to really create a strong margin profile for the business.

正如我們在上個季度的電話會議上所討論的，隨著我們邁入2026年，我們計劃並實際執行了SKU和款式數量減少20%的目標。因此，當我們的產品組合更加合理時，我們的費用計劃也會更加合理。屆時，我們將有能力真正為公司創造強勁的利潤率。

So at this point, our focus is executing really well the balance of the year. both in all of the things we just talked about around the margin profile and also obviously operationally and for our customers. And then as we move forward to 2026, that's where we start to really start implementing those key KPIs around SKU productivity around promotional cadence and around inventory management that will lead to a stronger margin profile long term.

因此，目前我們的重點是在今年餘下的時間裡取得好成績，這不僅體現在我們剛才談到的利潤率方面，也體現在營運和客戶方面。然後，隨著我們邁向2026年，我們將開始真正實施那些圍繞SKU生產力、促銷節奏和庫存管理的關鍵KPI，這將帶來長期更強勁的利潤率。

Okay, great. That's very clear. Thanks again for taking all the questions.

好的，太好了。很清楚。再次感謝您回答所有問題。

Sure, absolutely, thanks.

當然，非常感謝。

This will conclude our question-and-answer session as well as our conference call for today. Thank you for your participation. You may now disconnect.

今天的問答環節和電話會議到此結束。感謝您的參與。現在可以斷開連線了。