Five Below Inc (FIVE) 2024 Q2 法說會逐字稿

Good day and welcome to the Five Below second-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 2024 年第二季財報電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Christiane Pelz, Vice President of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係副總裁克里斯蒂安·佩爾茲 (Christiane Pelz)。請繼續。

Thank you, Drew. Good afternoon, everyone, and thanks for joining us today for Five Below's second-quarter 2024 financial results conference call. On today's call are Tom Vellios, Executive Chairman and Founder; and Ken Bull, Interim President and Chief Executive Officer and Chief Operating Officer; and Kristy Chipman, Chief Financial Officer and Treasurer. After management has made their formal remarks, we will open the call to questions.

謝謝你，德魯。大家下午好，感謝您今天參加我們的 Five Below 2024 年第二季財務業績電話會議。出席今天電話會議的有執行主席兼創辦人 Tom Vellios；臨時總裁兼執行長兼營運長 Ken Bull；財務長兼財務主管克里斯蒂·奇普曼 (Kristy Chipman)。管理層發表正式講話後，我們將開始提問。

I need to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the press release and our SEC filings. The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update our forward-looking statements.

我需要提醒您的是，本次電話會議期間發表的某些評論可能構成前瞻性陳述，並且是根據經修訂的1995 年《私人證券訴訟改革法案》的安全港條款並在其含義範圍內發表的。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與此類陳述有重大差異。這些風險和不確定性在新聞稿和我們向 SEC 提交的文件中進行了描述。今天所做的前瞻性陳述截至本次電話會議之日，我們不承擔任何更新前瞻性陳述的義務。

In this presentation, we will refer to our SG&A expenses for -- SG&A means selling, general and administrative expenses, including payroll and other compensation, marketing and advertising expense, depreciation, amortization expense, and other selling and administrative expenses. Additionally, we will be discussing certain non-GAAP financial measures. The reconciliation of these items to US GAAP are included in today's press release. If you do not have a copy of today's press release, you may obtain one by visiting the Investor Relations page of our website at fivebelow.com.

在本簡報中，我們將提及我們的 SG&A 費用——SG&A 是指銷售、一般和管理費用，包括薪資和其他報酬、行銷和廣告費用、折舊、攤提費用以及其他銷售和管理費用。此外，我們也將討論某些非公認會計準則財務指標。這些項目與美國公認會計準則的調整包含在今天的新聞稿中。如果您沒有今天新聞稿的副本，您可以造訪我們網站 Fivebelow.com 的投資者關係頁面以取得一份。

I will now turn the call over to Tom.

我現在會把電話轉給湯姆。

Thank you, Christiane, and thank you all for joining us today to discuss our fiscal second-quarter results and our path forward.

謝謝克里斯蒂安，也謝謝大家今天加入我們討論我們的第二財季業績和前進的道路。

Over the past six weeks, I have been heavily engaged with the company, working closely with Ken and the team as we thoroughly assessed our business challenges, navigated the CEO transition and launched the search for a permanent CEO. When David and I founded Five Below, our vision was clear -- to be the go-to destination for pre-teens and teens, a cool store for kids and a yes store for parents.

在過去的六週裡，我一直與公司密切合作，與肯和團隊密切合作，徹底評估了我們的業務挑戰，引導了執行長的過渡，並開始尋找永久執行長。當大衛和我創立 Five Below 時，我們的願景很明確——成為青少年和青少年的首選目的地，成為孩子們的酷店和家長們的認可商店。

Our mission has always been to deliver an exciting assortment of extreme value, trend-right, high-quality products in a fun shopping environment. We have always been intensely focused on the customer. And this commitment has made Five Below a successful standout growth retailer. Over the past few years, we lost some of that sharp focus on our core customers.

我們的使命始終是在有趣的購物環境中提供各種令人興奮的超值、潮流、高品質的產品。我們始終高度關注客戶。這項承諾使 Five Below 成為一家成功的、傑出的成長型零售商。在過去的幾年裡，我們失去了對核心客戶的一些敏銳關注。

Since 2022, we launched a new store format, opened over 450 new stores, remodeled over 750 locations and over expanded our product assortment. We did this all while managing a challenging macro environment and consumer shifts, which stretched our teams.

自 2022 年以來，我們推出了新的門市業態，開設了 450 多家新店，改造了 750 多個門市，並過度擴展了我們的產品種類。我們在做到這一切的同時也要應對充滿挑戰的宏觀環境和消費者的變化，這讓我們的團隊捉襟見肘。

We know the resulting issues are fixable. In fact, work is already underway, and we are committed to an operational and strategic refocus of our business. Going forward, we are refocusing on our core customers. We are prioritizing initiatives that enhance value, improve the shopping experience, streamline our operations and ensure that we meet the evolving needs of our customers.

我們知道由此產生的問題是可以解決的。事實上，工作已經在進行中，我們致力於重新調整業務的營運和策略重點。展望未來，我們將重新專注於核心客戶。我們優先考慮提升價值、改善購物體驗、簡化營運並確保滿足客戶不斷變化的需求的措施。

Specifically, we need to regain our speed and intensity in identifying and bringing in key trend items into our stores that delight our customers. We need to deliver more wow and value, which for Five Below is the intersection of trend, quality, and price.

具體來說，我們需要恢復識別關鍵趨勢商品並將其引入商店以取悅顧客的速度和強度。我們需要提供更多的驚喜和價值，這對「五以下」來說是趨勢、品質和價格的交集。

We are fortunate to have an engaged, energized and motivated team who understand the task at hand and the steps necessary to execute. We are confident in our leadership with Ken at the helm. His operational experience, knowledge of the business and keen understanding of our culture position us well to execute this reset of our business.

我們很幸運擁有一支敬業、充滿活力和積極進取的團隊，他們了解手頭上的任務以及執行所需的步驟。我們對 Ken 的領導充滿信心。他的營運經驗、業務知識以及對我們文化的敏銳理解使我們能夠很好地執行這次業務重組。

As we move forward, we are fully committed to making the necessary changes to deliver the wow factor our customers, associates, and shareholders deserve. Together, we will emerge stronger and more vibrant than ever. And with that, I will hand it over to Ken to give you more information on our strategy and initiatives. Ken?

隨著我們的前進，我們完全致力於做出必要的改變，以提供我們的客戶、員工和股東應得的驚喜。在一起，我們將變得比以往任何時候都更強大、更有活力。接下來，我將把它交給 Ken，向您提供有關我們的策略和舉措的更多資訊。肯？

Thanks, Tom. Second-quarter results fell short of what we know this business is capable of delivering. On today's call, I will discuss the learnings of the last six weeks and how we are approaching a refocus of the business, and Kristy will then provide the details of our financial performance and outlook.

謝謝，湯姆。第二季業績未達到我們所知的該業務所能提供的水準。在今天的電話會議上，我將討論過去六週的經驗教訓以及我們如何重新調整業務重點，然後克里斯蒂將提供我們財務業績和前景的詳細資訊。

Tom and I and the teams have spent the last several weeks thoroughly assessing the business. Before I share how we are addressing the issues we have identified, I want to take a minute to discuss how we got here. We experienced many macro pressures over the last several years that significantly impacted our business. Post-pandemic, we saw stimulus-driven demand, supply chain disruptions, and inflation as well as evolving customer preferences and changes in where and how our teams worked.

湯姆和我以及團隊在過去的幾週內對業務進行了徹底的評估。在分享我們如何解決已發現的問題之前，我想花一點時間討論我們是如何走到這一步的。過去幾年，我們經歷了許多宏觀壓力，對我們的業務產生了重大影響。大流行後，我們看到了刺激驅動的需求、供應鏈中斷和通貨膨脹，以及不斷變化的客戶偏好以及我們團隊工作地點和方式的變化。

To manage the inflationary impact to our margins, we increased prices and expanded the number of price points. We over expanded our assortments across our worlds without a strict editing process of past years and without the key item focus that screamed value and differentiation. During this time, we also set our Triple-Double vision, to triple our store count by 2030 and double EPS by 2025.

為了應對通貨膨脹對我們利潤的影響，我們提高了價格並擴大了價格點的數量。我們在世界範圍內過度擴展了我們的品種，沒有過去幾年嚴格的編輯過程，也沒有強調價值和差異化的關鍵項目焦點。在此期間，我們也制定了「三倍」願景，即到 2030 年將門市數量增加兩倍，到 2025 年將每股盈餘增加一倍。

With the benefit of hindsight, the timeline for these goals was too aggressive and put a tremendous amount of pressure on the organization. In addition, we added corporate overhead, further weight raised retail prices and tightened store labor. Recent shrink mitigation efforts also increased the complexity and workload for our stores.

事後看來，這些目標的時間表過於激進，對組織帶來了巨大的壓力。此外，我們還增加了企業管理費用，進一步提高了零售價格並收緊了商店勞動力。最近減少損耗的努力也增加了我們商店的複雜性和工作量。

To address these issues, we have a plan in place that includes key areas of focus and supporting initiatives across product and value as well as store experience. Starting with product and value, we are renewing our commitment to being that yes store for kids and parents. The pre-teen and teen demographic is our core customer, and while we will always work to deliver universal appeal, we need to refocus on delivering an assortment that will wow this core customer demographic.

為了解決這些問題，我們制定了一項計劃，其中包括重點關注領域以及跨產品和價值以及商店體驗的支援計劃。從產品和價值開始，我們重申我們的承諾，成為兒童和家長的「yes」商店。青春期前和青少年群體是我們的核心客戶，雖然我們將始終努力提供普遍吸引力，但我們需要重新專注於提供讓這個核心客戶群驚嘆不已的產品組合。

We are focused on the following actions to achieve this. We will significantly reduce the breadth of our assortment and return to pre-pandemic levels. We will lead with value amplifying the price points that are most impactful for our core customer. We will emphasize key items at $5 and below price points. We will also reduce the number of price points to drive simpler store execution and customer experience and strengthen our competitive pricing.

為了實現這一目標，我們將重點放在以下行動。我們將大幅減少產品種類的廣度，並恢復到疫情前的水準。我們將以價值放大對我們的核心客戶最有影響力的價格點為主導。我們將重點放在 5 美元及以下價位的關鍵商品。我們還將減少價格點的數量，以簡化商店執行和客戶體驗，並增強我們的競爭性定價。

We will increase the flow of newness across all worlds. We will reinvent and maximize our seasonal businesses. We will raise the bar on Five Beyond, focusing on key items amplifying value and trend. And we will leverage our scale and vendor relationships to a far greater degree to accomplish all of this. As we reduce SKUs and refocus on key items across all of our merchandise world, the broader sales performance will allow us to reinvest in price while maintaining a stable product margin profile.

我們將增加世界各地的新鮮事物的流動。我們將重塑並最大化我們的季節性業務。我們將提高「五個超越」的標準，並專注於放大價值和趨勢的關鍵項目。我們將更大程度地利用我們的規模和供應商關係來實現這一切。隨著我們減少 SKU 並重新關注我們所有商品領域的關鍵商品，更廣泛的銷售業績將使我們能夠在價格上進行再投資，同時保持穩定的產品利潤率。

To help achieve all of this, we are returning to in-person work at our office in Philadelphia. We work better when we're together, and I know this will drive better performance as we return to the culture that has driven our success. I am particularly excited about what this means for collaboration and innovation within our merchandising organization as we renew our focus on delivering wow and value for our customers.

為了幫助實現這一切，我們將恢復在費城辦公室的面對面工作。當我們在一起時，我們會工作得更好，而且我知道，當我們回歸推動我們成功的文化時，這將帶來更好的績效。當我們重新專注於為客戶提供驚喜和價值時，我對這對我們銷售組織內的協作和創新意味著什麼感到特別興奮。

Our strategies to improve the product will only be successful if we deliver our customers a store experience that reflects our brand: fun and energizing. To accomplish this, we are evaluating our store operating model with the goal of reducing complexity and optimizing our store labor. The outcome of this work will be simplifying store tasks and adding labor hours where necessary.

只有為客戶提供體現我們品牌的商店體驗：有趣且充滿活力，我們改進產品的策略才會成功。為了實現這一目標，我們正在評估我們的商店營運模式，以降低複雜性並優化我們的商店勞動力。這項工作的結果將是簡化商店任務並在必要時增加勞動時間。

As we do all this work, we are also continuing to optimize our cost structure and sharpening our approach to investments as we implement each of these initiatives across product and value as well as store experience. Over time, these cost savings will serve as a partial offset to the labor investments I just mentioned.

在我們進行所有這些工作的同時，我們也在產品、價值以及商店體驗方面實施每一項舉措，從而繼續優化我們的成本結構並強化我們的投資方法。隨著時間的推移，這些成本節省將部分抵消我剛才提到的勞動投資。

Finally, we will continue to be a leading growth retailer with best-in-class new store economics. As we reset the business, we are moderating our store growth for 2025 and currently expect to open 150 to 180 stores. This moderation allows us to focus on execution in the key areas that I have outlined. It also allows us to be more selective in our real estate locations, optimize our capital outlay, and deliver better overall store execution.

最後，我們將繼續成為一家領先的成長型零售商，擁有一流的新店經濟效益。隨著我們重新調整業務，我們正在放緩 2025 年門市成長速度，目前預計將開設 150 至 180 家門市。這種節制使我們能夠專注於我概述的關鍵領域的執行。它還使我們能夠更有選擇性地選擇我們的房地產位置，優化我們的資本支出，並提供更好的整體商店執行。

In summary, we have done a lot of work in the last several weeks, digging deep to understand our issues and implementing actions to address them, including our focus on the all-important upcoming holiday season. We believe our issues are fixable. We are moving with urgency, and we will see improvement in the business as newness and value are added to our product assortment. I would like to thank the teams across the organization for their hard work and dedication in helping us execute against our goals.

總之，我們在過去幾週做了很多工作，深入了解我們的問題並採取行動解決這些問題，包括我們對即將到來的最重要的假期的關注。我們相信我們的問題是可以解決的。我們正在緊急行動，隨著產品種類的新穎性和價值的增加，我們將看到業務的改善。我要感謝整個組織的團隊為幫助我們實現目標而付出的辛勤工作和奉獻精神。

And with that, I'll hand it over to Kristy. Kristy?

這樣，我就把它交給克里斯蒂。克里斯蒂？

Thanks, Ken, and good afternoon, everyone. I will begin my remarks with a review of our second-quarter results and then discuss our outlook. Sales in the second quarter increased 9.4% to $830 million with comparable sales down 5.7%, driven by a decrease in comp transactions of 5.4% and comp ticket of 0.3%. Traffic to the stores was positive with conversion, the driver of the negative comp. The comp ticket decline was driven by lower units per transaction, nearly offset by an increase in the average unit retail price.

謝謝，肯，大家下午好。我將首先回顧我們第二季度的業績，然後討論我們的前景。第二季銷售額成長 9.4%，達到 8.3 億美元，可比銷售額下降 5.7%，原因是贈品交易量下降 5.4%，贈品門票下降 0.3%。商店的客流量與轉換率呈正相關，這是負補償的驅動因素。贈券的下降是由於每筆交易的單位數量減少造成的，但幾乎被平均單位零售價格的上漲所抵消。

Many of the categories that underpinned our comp performance in the first quarter continued as customers remained discerning with their discretionary spending. Our version of consumables in our Candy and Style worlds delivered positive results but was more than offset by underperformance in other worlds, including the Now world summer set and the Sports world, including games and toys as a result of the slowing squishmallow trends.

由於客戶對可自由支配的支出保持敏銳，支撐我們第一季業績表現的許多類別仍在繼續。我們的糖果和時尚世界中的消耗品版本取得了積極的成果，但被其他世界的表現不佳所抵消，包括現在世界的夏季套裝和體育世界，包括由於擠壓軟糖趨勢放緩而導致的遊戲和玩具。

We opened 62 new stores across 22 states in the second quarter compared to 40 new stores opened in the second quarter last year. We ended the quarter with 1,667 stores, an increase of 260 stores or approximately 18%.

第二季度，我們在 22 個州開設了 62 家新店，而去年第二季度則開設了 40 家新店。本季末，我們擁有 1,667 家門市，增加了 260 家門市，增幅約 18%。

Gross profit for the second quarter of 2024 was up 2.7% to $271.8 million. Gross margin decreased by approximately 220 basis points to 32.7%, driven primarily by deleverage of fixed costs on the negative comp and a higher year-over-year shrink accrual, partially offset by lower inbound freight.

2024 年第二季毛利成長 2.7% 至 2.718 億美元。毛利率下降約 220 個基點至 32.7%，主要是由於負補償固定成本的去槓桿化以及應計費用同比下降，部分被入境運費下降所抵消。

As a percentage of sales, SG&A for the quarter of 2024 increased approximately 60 basis points to 27.7% versus last year's second quarter. This was driven primarily by fixed cost deleverage on the negative comp and the impact of new retention awards, partially offset by lower incentive compensation expenses, and a non-recurring stock compensation benefit.

與去年第二季相比，2024 年季度的銷售、管理及行政費用 (SG&A) 佔銷售額的百分比增加了約 60 個基點，達到 27.7%。這主要是由於固定成本去槓桿化對負面補償和新的保留獎勵的影響所致，部分被較低的激勵補償費用和非經常性股票補償福利所抵消。

As a result, operating income for the quarter was $41.5 million versus $58.6 million in the second quarter of 2023. And operating margins decreased approximately 270 basis points to 5.0%. Adjusted operating margin, excluding non-recurring items, was $37 million and adjusted operating margin was 4.5%.

因此，本季營業收入為 4,150 萬美元，而 2023 年第二季為 5,860 萬美元。調整後營業利益率（不包括非經常性項目）為 3,700 萬美元，調整後營業利益率為 4.5%。

Net income for the second quarter of 2024 was $33.0 million versus net income of $46.8 million last year. Adjusted net income for the second quarter was $29.7 million. Earnings per diluted share was $0.60, and adjusted earnings per diluted share for the second quarter was $0.54 compared to last year's earnings per diluted share of $0.84.

2024 年第二季淨利為 3,300 萬美元，而去年淨利為 4,680 萬美元。第二季調整後淨利為 2,970 萬美元。稀釋每股收益為 0.60 美元，第二季調整後每股稀釋收益為 0.54 美元，而去年的稀釋每股收益為 0.84 美元。

We ended the second quarter with $328 million in cash, cash equivalents, and investments, and no debt. Inventory at the end of the second quarter was $640 million as compared to $544 million at the end of the second quarter last year. Average inventory on a per-store basis decreased approximately 1% versus the second quarter last year.

第二季末，我們擁有 3.28 億美元的現金、現金等價物和投資，沒有債務。第二季末的庫存為 6.4 億美元，而去年第二季末的庫存為 5.44 億美元。每家商店的平均庫存比去年第二季下降了約 1%。

Turning to guidance. For the full year, we are comparing against fiscal year 2023 on a 52-week basis as the extra week in fiscal 2023 added approximately $48 million in sales and approximately $0.15 in EPS. I will also refer to comparisons to fiscal year 2024 on an adjusted basis that excludes the impact of non-recurring or non-cash items, including asset disposals, retention awards, and costs associated with our cost optimization initiatives. Our press release outlines our sales, new-store, and earnings guidance for Q3 and the full year 2024, so I will focus my commentary on additional details or drivers for that guidance.

轉向指導。對於全年，我們以 52 週為基礎與 2023 財年進行比較，因為 2023 財年額外一周增加了約 4800 萬美元的銷售額和約 0.15 美元的每股收益。我也會參考調整後的 2024 財年的比較，排除非經常性或非現金項目的影響，包括資產處置、保留獎勵以及與我們的成本優化計畫相關的成本。我們的新聞稿概述了我們第三季和 2024 年全年的銷售、新店和盈利指引，因此我的評論將重點放在該指引的其他細節或驅動因素上。

On an adjusted basis, the midpoint of our third-quarter guidance assumes a gross margin improvement of approximately 190 basis points, primarily due to lapping the prior year's shrink reserve true up as well as efficiencies in our distribution centers and some timing benefits on product margin, partially offset by fixed cost deleverage on the negative comp.

在調整後的基礎上，我們第三季度指導的中位數假設毛利率提高約190 個基點，這主要是由於上一年的收縮準備金的真實性以及我們配送中心的效率以及產品利潤率的一些時間優勢，部分被固定成本去槓桿化的負補償抵銷。

SG&A at the midpoint is expected to be 290 basis points worse than the prior year, driven by fixed cost deleverage on the negative comp, modest store labor investments and a small timing shift in marketing. Net interest income is expected to be approximately $2 million for the third quarter, and taxes are expected to be approximately 25%.

由於負補償的固定成本去槓桿化、商店勞動力投資適度以及營銷時機的小幅調整，預計 SG&A 中點將比上年低 290 個基點。第三季淨利息收入預計約200萬美元，稅費預計約25%。

Now on to the full year. On an adjusted basis, the midpoint of our full-year guidance assumes gross margin delevers 40 basis points as benefits from inbound freight and lapping last year's shrink reserve true up is more than offset by higher fixed cost deleverage due to the negative comp. SG&A at the midpoint is expected to be 170 basis points higher than the prior year as incentive comp benefits and cost optimization savings are more than offset by fixed cost deleverage on the negative comp and modest investments in store labor.

現在進入全年。在調整後的基礎上，我們全年指引的中點假設毛利率去槓桿化40個基點，因為入境貨運和去年縮減準備金的實際增長所帶來的好處被負面補償帶來的固定成本去槓桿化的提高所抵消。 SG&A 中點預計將比上年高出 170 個基點，因為激勵補償收益和成本優化節省被負補償的固定成本去槓桿化和商店勞動力的適度投資所抵消。

As a result, adjusted operating margin, excluding approximately $25 million in non-recurring or non-cash items is expected to be approximately 8.6% or deleverage of 210 basis points on a 52-week basis. Net interest income is forecasted to be approximately $12 million for the year, and we expect a full-year effective tax rate for 2024 of approximately 25%.

因此，調整後的營業利潤率（不包括約 2,500 萬美元的非經常性或非現金項目）預計約為 8.6%，即 52 週去槓桿化 210 個基點。預計全年淨利息收入約為 1,200 萬美元，我們預計 2024 年全年有效稅率約為 25%。

With respect to gross CapEx, we now plan to spend between $335 million and $345 million, excluding the impact of tenant allowances. This reflects the opening of approximately 230 new stores converting about 180 store locations to the Five Beyond format, the completion of expansions in our distribution centers in Georgia and Arizona, and investments in systems and infrastructure.

就總資本支出而言，我們現在計劃支出 3.35 億至 3.45 億美元，不包括租戶津貼的影響。這反映了約 230 家新店的開業，約 180 家店面轉變為 Five Beyond 模式，完成了佐治亞州和亞利桑那州配送中心的擴建，以及對系統和基礎設施的投資。

For the fourth quarter, on a 13-week year-over-year basis, which excludes the extra week in 2023, this full-year guide implies the following. Total sales increased between 1% to 5% with an implied comp decline in the mid-single-digit range, in line with the second-quarter results and the third-quarter guidance. This sales range reflects five fewer shopping days between Thanksgiving and Christmas. It also implies a year-over-year adjusted operating margin decline at the midpoint of approximately 200 basis points due to fixed cost deleverage on the negative comp, partially offset by lapping a shrink true-up in the fourth quarter last year and lower incentive compensation.

對於第四季度，以 13 週同比計算（不包括 2023 年額外的一周），這份全年指南意味著以下內容。總銷售額成長 1% 至 5%，隱含年減幅度在中個位數範圍內，與第二季業績和第三季指引一致。這個銷售範圍反映了感恩節和聖誕節之間購物日減少了五個。這也意味著，由於負補償的固定成本去槓桿化，調整後的營業利潤率年減約200個基點，部分被去年第四季的收縮調整和較低的激勵薪酬所抵銷。

To wrap up, we know what needs to be done to return the business to its roots and realize its potential. That work is well underway. However, it will take time to be reflected in our financial results. We have a significant growth opportunity ahead, coupled with a meaningful opportunity to improve our comp trajectory, and the entire Five Below team is focused on executing against this.

總而言之，我們知道需要採取哪些措施才能使業務回歸根源並發揮其潛力。這項工作正在順利進行中。然而，這需要時間才能反映在我們的財務表現中。我們前面有一個重大的成長機會，還有一個改善我們的競爭軌蹟的有意義的機會，整個「五以下」團隊都專注於執行這一目標。

For all other details related to our results and guidance, please refer to our earnings press release. And with that, I'd like to turn the call back over to the operator for the question-and-answer session. Operator?

有關我們的業績和指導的所有其他詳細信息，請參閱我們的收益新聞稿。這樣，我想將電話轉回給接線生進行問答環節。操作員？

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。 （操作員說明）

Edward Kelly, Wells Fargo.

愛德華凱利，富國銀行。

Hi, everyone. Good morning or good afternoon. I wanted to ask you, taking a step back, it sounds like you believe a lot of the problems here are self-inflicted. Obviously, there's been some macro pressure, but there's been a lot of worry about competition as well and how that has shifted. Can you just maybe talk a bit more about what you think is fixable? Why aren't there more structural challenges here?

大家好。早安或下午好。我想問你，退一步說，聽起來你認為這裡的許多問題都是你自己造成的。顯然，存在一些宏觀壓力，但人們也對競爭以及競爭如何變化感到許多擔憂。能多談談你認為可以解決的問題嗎？為什麼這裡沒有出現更多的結構性挑戰？

And then as you think about the EBIT margin, 8.6% this year, almost 12% in 2019. It is going to be -- it seems like investment in value. It looks like there's some investment in labor. What's the right margin of the business when the dust settles?

然後，當你考慮息稅前利潤率時，今年為 8.6%，2019 年幾乎為 12%。看來勞動力方面有一些投資。當塵埃落定後，企業的正確利潤率是多少？

Okay. Thanks, Ed, for that question. There's a lot there. Just to go back to the beginning of your comment around -- you mentioned about structural challenges. We do not believe this is a structural issue at all. As I mentioned, and as Tom mentioned, also, this is fixable. And when we went back in over the past several weeks, I've kind of looked at the business, there were the macro pressures that I spoke about that actually drove strategies that at the time delivered results, but they had longer term consequences.

好的。謝謝埃德提出這個問題。那裡有很多東西。回到您評論的開頭——您提到了結構性挑戰。我們認為這根本不是結構性問題。正如我所提到的，也正如湯姆所提到的，這是可以修復的。當我們過去幾週回顧時，我對業務進行了一些研究，我談到的宏觀壓力實際上推動了當時取得成果的策略，但它們產生了長期後果。

And really what we got away from was the core part of our business around pre-teens and teens and really the mission for us in delivering an edited assortment trend product, high quality, at extreme value in a fun and exciting environment. I mean that's really what it was. We just kind of lost our way a little bit based on the things that we were focused on post-pandemic.

我們真正擺脫的是我們圍繞青少年和青少年的業務的核心部分，我們的使命是在一個有趣和令人興奮的環境中提供經過編輯的高品質、高價值的分類趨勢產品。我的意思是事實確實如此。基於我們在疫情後關注的事情，我們有點迷失了方向。

Regarding competition, there's always been competition out there, whether you go back to the days when people were speaking about Amazon, and that was going to have a huge impact on us. And you fast forward to where we are today, a $4 billion company with 1,700 stores. So we know when we're at our best and we're performing at the level and delivering to our customers, we'll do really well, competition or not. And I think what you've seen is the competition has kind of inched up to us over the last few years, and we got to get out there and push the lead like we always used to have back in the day.

關於競爭，無論你是否回到人們談論亞馬遜的時代，競爭總是存在的，這將對我們產生巨大的影響。您快轉到今天，我們是一家價值 40 億美元、擁有 1,700 家商店的公司。因此，我們知道，當我們處於最佳狀態、達到一定水平並為客戶提供服務時，無論是否存在競爭，我們都會做得很好。我認為你所看到的是，在過去的幾年裡，競爭已經逐漸逼近我們，我們必須走出去，像以前那樣，推動領先地位。

Kate McShane, Goldman Sachs.

凱特麥克肖恩，高盛。

Hi, good afternoon. Thanks for taking our question. We wondered how much change or influence you could see for the product around holiday based on some of these new strategic actions. I wouldn't imagine that there would be much wiggle room for change there. But curious if you would have any kind of impact and how soon -- if not, holiday, how soon can we see these changes at the store?

嗨，下午好。感謝您提出我們的問題。我們想知道，基於這些新的策略行動，您在假期期間可以看到產品有多大的變化或影響。我不認為那裡會有很大的改變空間。但很好奇您是否會產生任何影響，以及多久——如果沒有，那就放假，我們多久才能在商店看到這些變化？

Yeah, thanks, Kate. As you would guess, given lead times, the overwhelming majority of holiday products has already been purchased. Although we do have an opportunity to go and chase some items, again -- and you heard - I spoke about, and Tom also, we have to return to our basis here of being a item-driven business at the end of the day. So we will chase some of those in the marketplace to try to help us.

是的，謝謝，凱特。正如您所猜測的，考慮到交貨時間，絕大多數節日產品已經被購買。雖然我們確實有機會去追逐一些物品，但你也聽到了，我和湯姆都談過，最終我們必須回到我們作為物品驅動業務的基礎。因此，我們會在市場上尋找一些人來幫助我們。

In terms of an improvement in the business, I think when we get to the point where we see that newness and value in our assortment, I think that's when you're going to start to see the improvement in our business and obviously, with the lead times. And we were looking at the spring, summer now, but I would say we'd start to see that improvement as we see the improvements in our assortment. Thanks, Kate.

就業務的改進而言，我認為當我們看到我們的品種的新穎性和價值時，我認為那時您將開始看到我們業務的改進，顯然，隨著交貨時間。我們現在正在考慮春季、夏季，但我想說，當我們看到我們的產品種類的改進時，我們就會開始看到這種改進。謝謝，凱特。

John Heinbockel, Guggenheim.

約翰·海因博克爾，古根漢。

Hey, guys, multipart -- you talked about speed and you've always had a trend department. You need to do anything with how you're structuring, merchandising, make any organizational changes, just maybe internally to get that speed and get that newness? Number one.

嘿，夥計們，多部分——你們談到了速度，而且你們一直都有一個趨勢部門。你需要對你的結構、推銷方式做任何事情，進行任何組織變革，也許只是在內部，以獲得那樣的速度和新鮮感？第一。

Number two, you did your work with the consumer. Has the perception of the brand change from what it was two or three years ago? And then lastly, how do you -- as you make these changes, how do you get the customer recognize right that you've made the changes, and you've got kind of gone back to what you were.

第二，你與消費者一起工作。與兩、三年前相比，人們對該品牌的看法是否改變了？最後，當你做出這些改變時，你如何讓客戶正確地認識到你已經做出了改變，並且你已經回到了原來的狀態。

Yeah. Thanks, John. On the first part of the question around speed, it's interesting. I think we talked about it over the last few quarters, We have gone through what -- internally here merchandising organization transformation. Again, kind of getting back to our roots in terms of how those teams, the buying teams, the planning teams, allocation teams are operating. So we're in the middle of putting that into place. And so I think that's going to help a lot to get back to speed, which we really have historically used it as an advantage, and we have to pull that forward again.

是的。謝謝，約翰。關於速度問題的第一部分，很有趣。我想我們在過去的幾季裡討論過這個問題，我們在內部經歷了銷售組織的轉型。再次回到我們的根源，也就是這些團隊、採購團隊、規劃團隊、分配團隊的運作方式。所以我們正在將其落實到位。因此，我認為這將有助於恢復速度，我們歷史上確實將其用作優勢，並且我們必須再次推動這一點。

From a customer perception standpoint, part of the analysis we did was not only looking at internal data and some metrics, but also customer surveys and intercepts. And I think one of the things that was clear was the customers looking for more value for us at the end of the day.

從客戶感知的角度來看，我們所做的分析的一部分不僅是查看內部數據和一些指標，還包括客戶調查和攔截。我認為很明顯的一件事是客戶最終會為我們尋找更多價值。

And that's -- the way we look at value, it's not just price. It's really a combination of trend and quality and price. So that's where we know we have to do better and we're going to be working on.

這就是我們看待價值的方式，而不僅僅是價格。這確實是趨勢、品質和價格的結合。因此，我們知道我們必須做得更好，並且我們將繼續努力。

And then to pull customers back in, I think that's going to be marketing for us. We've done some marketing tests. We know we have the ability with testing to improve traffic, but you heard Kristy talk about our challenges with conversion. So we'll focus on the marketing piece of it after we have the ability to improve the product and drive conversion.

然後為了吸引顧客回來，我認為這對我們來說就是行銷。我們做了一些行銷測試。我們知道我們有能力透過測試來提高流量，但您聽到克里斯蒂談到了我們在轉換方面面臨的挑戰。因此，在我們有能力改進產品並提高轉換率之後，我們將專注於行銷部分。

Matthew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Great. Thanks. So two questions, Ken. First, maybe could you just elaborate on customer behaviors and comp trends that you saw to exit the quarter, maybe what you've seen in August across worlds? And then on store growth, could you speak to the reduction for 2025 growth, and what you'll be looking for to potentially reaccelerate unit growth over time?

偉大的。謝謝。所以有兩個問題，肯。首先，也許您可以詳細說明您在本季結束時看到的客戶行為和比較趨勢，也許您在 8 月在世界各地看到了什麼？然後關於商店增長，您能否談談 2025 年增長的減少，以及隨著時間的推移，您將尋求什麼來潛在地重新加速單位增長？

Thanks, Matt. Around customer behaviors, it was actually very similar to what we saw in Q1, where our lower-income demographic was underperforming and our higher-income demographic was outperforming, which tells us well two things along with the other information. One, we were getting some trade down there from the higher-income demographic, and the lower income was probably more around value, which I just mentioned that we have to do better on.

謝謝，馬特。圍繞著客戶行為，它實際上與我們在第一季度看到的情況非常相似，其中低收入人群表現不佳，而高收入人群表現出色，這很好地告訴了我們兩件事以及其他資訊。第一，我們從高收入人群那裡獲得了一些貿易，而較低收入可能更多地圍繞價值，我剛才提到我們必須在這方面做得更好。

So those dynamics have continued. As we've exited Q2 and gone into August, we have seen improvements in traffic. I think that's -- you've probably heard that from other retailers. I mean, it's out there, whether it's back-to-school and that that's kicked in. But we still have continued to see that same dynamic between lower-income and higher-income customers -- that dispersion between performance.

因此，這些動態仍在繼續。隨著第二季的結束並進入八月，我們看到流量有所改善。我認為您可能已經從其他零售商那裡聽說過這一點。我的意思是，它就在那裡，無論是返校還是開始。

In terms of store growth, I mentioned that we are going to moderate in 2025, right? 150 to 180 stores. We're doing that primarily, so we can focus on execution of these initiatives. And we'll give you more detail as we move through the year and talk about it when we get to the fourth quarter. But for the most part, we'll probably have growth rates that are similar in the near term to the growth rate there were outlined for 2025, but more to come on that as we get to the end of the year.

在商店成長方面，我提到我們將在 2025 年放緩，對嗎？ 150至180家商店。我們主要這樣做，這樣我們就可以專注於這些措施的執行。我們將在這一年中向您提供更多詳細信息，並在第四季度時討論。但在大多數情況下，短期內我們的成長率可能與 2025 年概述的成長率相似，但到年底時還會有更多成長。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Hi, everyone. Good afternoon. Hey, Ken. I wanted to ask about the unit growth for '25? Question is how do you land that whatever -- I think at the 9% number, and how much did you evaluate just cutting deeper for now triage the business, get the operations in order and then come back to the store growth once everything is in order? And as part of that question, does it reflect that you're seeing a stabilization at least at the current run rate such that you don't have to do anything even more harsh right now to the unit growth? Thank you.

大家好。午安.嘿，肯。我想問一下 '25 的單位增長情況？問題是你如何實現這一點——我想是 9% 的數字，你對現在更深層次的業務分類、運營井然有序，然後在一切就緒後回到商店增長的評價是多少命令？作為這個問題的一部分，它是否反映出您至少在當前的運行速度上看到了穩定，這樣您現在就不必對單位增長採取任何更嚴厲的措施？謝謝。

Right. Thanks, Simeon. We did a deep dive on all the deals. As you know, Simeon, there's a pretty long lead time for real estate. So we've got a lot of deals that are in the pipeline, and we looked at those closely, because one of the other things we want to get back to are the returns that we've seen historically from us and look to improve those and reinforce those. So we did a deep dive on all the deals that we have. And we have the ability to be selective around the real estate locations.

正確的。謝謝，西蒙。我們對所有交易進行了深入研究。如你所知，西蒙，房地產的交貨時間相當長。因此，我們有很多交易正在進行中，我們仔細研究了這些交易，因為我們想要回到的另一件事是我們歷史上看到的回報，並希望改善這些回報並強化這些。因此，我們深入研究了我們擁有的所有交易。我們有能力選擇房地產地點。

But I'll mentioned to you again, the real reason was we wanted to make sure we weren't taxing the organization with a number because, as I said before, we really need focus across the company. So the real driver in terms of the number of stores was that we can have the organization focus again and go after the initiatives that we feel that we've put out there.

但我會再次向您提到，真正的原因是我們希望確保我們不會用數字向組織徵稅，因為正如我之前所說，我們確實需要整個公司的關注。因此，就商店數量而言，真正的驅動力是我們可以再次讓組織集中精力，並繼續執行我們認為已經推出的舉措。

Michael Lasser, UBS.

麥可拉瑟，瑞銀集團。

Good evening. Thank you so much for taking my question. Can you quantify the collective impact from the investments that you're making in both labor as well as value not only this year, but what you expect that to be next year?

晚安.非常感謝您回答我的問題。您能否量化您今年在勞動力和價值方面進行的投資的集體影響，以及您預計明年的影響？

And then on top of that, presumably there are some expenses you mentioned retention bonus, but less incentive comp that are impacting the P&L this year that are going to come back or at least change next year. This will help formulate the building blocks that we can model your business more effectively as we make assumptions up and down the P&L. Thank you very much.

最重要的是，大概有一些您提到的保留獎金費用，但影響今年損益的激勵補償較少，這些費用將在明年回來或至少發生變化。這將有助於製定建置模組，以便我們在對損益表進行上下假設時更有效地為您的業務建模。非常感謝。

Thanks, Michael. I'll start with that and Kristy will add to that in terms of some of the details. I think from a labor perspective, at least in the near term, we're going to make what I would call it modest improvements in our labor out in the stores in the near term. As we move into next year, we'll build on that.

謝謝，麥可。我將從這一點開始，克里斯蒂將補充一些細節。我認為，從勞動力的角度來看，至少在短期內，我們將在短期內對商店的勞動力進行適度的改善。當我們進入明年時，我們將在此基礎上繼續努力。

From a value perspective and pricing, as I mentioned in my prepared remarks, what we would expect to see is improvement across all of our worlds and merchandise, which not only will help drive an overall top-line improvement, but it should also help to kind of fund, whether it's pricing, investments, or other things that we're going to do throughout the company that we can reinvest. So again, I would expect our overall merch margins to be relatively consistent year over year, being able to get a kind of a broader performance from our worlds and then using that to offset any price investments. But Kristy, if you have --

從價值角度和定價角度來看，正如我在準備好的發言中提到的，我們期望看到的是我們所有世界和商品的改善，這不僅有助於推動整體營收的改善，而且還應該有助於類型的基金，無論是定價、投資或我們將在整個公司進行的其他可以再投資的事情。因此，我再次預期我們的整體商品利潤率將同比相對穩定，能夠從我們的世界中獲得更廣泛的表現，然後用它來抵消任何價格投資。但是克里斯蒂，如果你有——

Yeah. I'll just add onto that. And my comments for this year are on that adjusted basis. And all of this has been reflected in our guide. And Ken, you hit it with pricing actions for this year would be margin neutral if we move forward with any and again, included in the guide.

是的。我就補充一下。我今年的評論就是在此基礎上進行調整的。所有這些都反映在我們的指南中。肯，如果我們繼續推進指南中包含的任何定價行動，那麼今年的定價行動將是利潤中立的。

From an SG&A perspective, that modest store labor investment also included in our guide has a nominal effect on a full-year basis. When you go into 2025, again, on an adjusted basis, margin neutral, as you mentioned, the labor investments we are expecting to be on higher, but that we are expecting to partially offset those with cost optimization savings that we are working through, and you've heard me talk about before, but we've widened that lens a bit.

從SG＆A的角度來看，我們的指南中也包含了適度的商店勞動力投資，這對全年產生了名義影響。當你進入2025 年時，再次在調整後的基礎上，利潤率中性，正如你提到的，我們預計勞動力投資會更高，但我們預計會透過我們正在努力實現的成本優化節省來部分抵消這些投資，你以前聽過我談論過，但我們已經擴大了這個視角。

And so we're not really prepared to talk too much about 2025 right now. Obviously, this isn't the time where we would typically be guiding, but I will tell you that in a scenario where we have a 3% comp, that is when we'll begin to start to leverage the business again into the future. I think the other piece you asked about was if I take the $25 million of adjustments that we have, about half of those will be repeated next year.

因此，我們現在還沒有準備好過多談論 2025 年。顯然，這不是我們通常會指導的時間，但我會告訴你，在我們有 3% 的補償的情況下，我們將開始在未來再次利用業務。我想你問的另一件事是，如果我進行 2500 萬美元的調整，其中大約一半將在明年重複。

Scot Ciccarelli, Truist.

斯科特·西卡雷利，真理論者。

Good afternoon, everyone. So everything you talked about in terms of the challenges of business -- that the business is facing really should have been true for several quarters. So I guess the question is why do you think the business seemed to slow so quickly kind of positive low-single digits to negative mid-single digits? And I guess somewhat related to that, it sounds like you're going to focus more on lower price points, if I understood your comments properly. So should we expect Noble ASP compression as you start to undergo that process? Thanks.

大家下午好。因此，您談到的有關業務挑戰的所有內容 - 業務面臨的挑戰確實應該在幾個季度內都是如此。所以我想問題是，為什麼你認為業務似乎放緩得如此之快，從正低個位數到負中個位數？我想與此有些相關的是，如果我正確理解你的評論，聽起來你會更專注於較低的價格點。那麼當您開始經歷這個過程時，我們是否應該期待 Noble ASP 壓縮呢？謝謝。

Thanks, Scot. Your question around kind of the timing of this, it really was a culmination of things over a period of years that I discussed and again, reactions to kind of post-pandemic macro pressures that we had. One of the things that may be -- and I'm just speculating here -- is the some of the challenges and pressures on lower-income customers, because we're seeing that with the data that we're looking at that they're underperforming versus higher-income customers.

謝謝，斯科特。你的問題是關於這個時機的，這確實是我討論過的幾年時間裡事情的高潮，也是我們對大流行後宏觀壓力的反應。其中一件事可能是——我只是在這裡推測——是低收入客戶面臨的一些挑戰和壓力，因為我們從我們正在查看的數據中看到，他們「與高收入客戶相比表現不佳。

And then we also saw an underperformance in our seasonal product in summer. That gets back to what I discussed around our focus on product and value and trend and delivering well. And that just wasn't there for us this year. And that's probably why you started to see it late in the first quarter and then into the second quarter.

然後我們也看到夏季季節性產品的表現不佳。這又回到了我圍繞著我們對產品、價值、趨勢和交付的關注所討論的內容。而今年我們就沒有這樣的經驗了。這可能就是為什麼你在第一季末開始看到它，然後進入第二季。

The lower price points, as Kristy mentioned, there's -- we'll be working through this, and we'll give you more information as we move forward. But we're going to be introducing and refocusing on those lower price points, $1, $3, $5. We'll selectively adjust prices where we feel we need to, but I don't think that's going to be that large at this time. It's going to be the reintroduction of those key price points for our customer. And again, it gets back to value. And for us, again, value is not just around price, it's around trend product, and it's around quality and price. So we'll continue to focus on that. Thanks, Scot.

正如克里斯蒂所提到的，較低的價格點 - 我們將解決這個問題，並且隨著我們的進展，我們將向您提供更多資訊。但我們將推出並重新關注那些較低的價格點，1 美元、3 美元、5 美元。我們將選擇性地在我們認為需要的地方調整價格，但我認為目前調整幅度不會那麼大。這將是為我們的客戶重新引入這些關鍵價格點。再一次，它又回到了價值。對我們來說，價值不僅在於價格，還在於趨勢產品、品質和價格。所以我們將繼續關注這一點。謝謝，斯科特。

Seth Sigman, Barclays.

塞思‧西格曼，巴克萊銀行。

Great. Hey, everybody. I wanted to focus more specifically on the Five Beyond strategy, maybe just speak about the performance in those locations. And I'm just curious, do you think that strategy has played any role in the challenges? Do you think it's added to perhaps price perception issues or quality then and shopping complexity for certain customers in the store, just that wide range of price points? And then ultimately, what type of changes should we see in that assortment? Thank you.

偉大的。嘿，大家。我想更具體地關注「五個超越」策略，也許只是談談這些地點的表現。我只是很好奇，您認為該策略在挑戰中發揮了任何作用嗎？您認為這是否會增加價格認知問題或品質問題，以及商店中某些顧客的購物複雜性，只是這麼廣泛的價格點？最終，我們應該在該類別中看到什麼類型的變化？謝謝。

Yeah, thanks. I'll start and Tom, you could add in on that too. We still believe in the Five Beyond product at the end of the day. We also realized that we're in a position where we need to re strategize around Five Below. So that's what we're going to be working on. And then, Tom, if you have any other comments?

是的，謝謝。我先開始，湯姆，你也可以補充。歸根結底，我們仍然相信「五超越」產品。我們也意識到，我們需要圍繞「五以下」重新制定策略。這就是我們要努力的事情。那麼，湯姆，您還有其他意見嗎？

I think that -- I think, again, it's correct. We believe in the Five Beyond opportunity. But I think as we relook at our strategy around that, I think it has -- we have to apply the same length, the same focus, the same discipline as we're trying to do with the rest of the business. And that's around very focused, narrow assortment, key items, extreme value trend, but equally important focus specifically on our core customer. And that's something we are actively looking at, and we'll have more to say about the overall Five Beyond as we move forward.

我認為——我再次認為這是正確的。我們相信「五個超越」的機會。但我認為，當我們重新審視我們的策略時，我認為我們必須採用與我們對其他業務相同的長度、相同的重點和相同的紀律。這是圍繞著非常集中的、狹窄的品種、關鍵項目、極端價值趨勢，但同樣重要的是特別關注我們的核心客戶。這是我們正在積極關注的事情，隨著我們的前進，我們將有更多關於整體「五個超越」的內容。

Yeah, I would just add, the performance itself has been pretty similar to what it -- what we've shared previously and in the first quarter as it relates to the lift from our supercharged versus not as well as the sales penetration being in the mid-single digit range of products.

是的，我想補充一點，業績本身與我們之前和第一季分享的內容非常相似，因為它與我們增壓與非增壓的提升以及銷售滲透率有關。

Paul Lejuez, Citi.

保羅‧勒胡埃斯，花旗銀行。

Thanks, guys. Curious how you would characterize the environment in terms of trend. Are there trends out there that you feel like you're not capitalizing on? Would you say it's more of an environment where there isn't a very strong trend?

謝謝，夥計們。很好奇您如何用趨勢來描述環境。是否存在您覺得自己沒有利用的趨勢？您是否認為這更像是一個沒有很強趨勢的環境？

And I guess maybe relate that to some of your conversion issue that you spoke to, do you think it is more of a lower-income consumer -- strapped consumer issue? Or is it maybe more tied to just not being a very strong trend out there right now driving traffic and conversion to stores?

我想這可能與您談到的一些轉換問題有關，您是否認為這更像是低收入消費者——拮据的消費者問題？或者，這可能與目前推動商店客流量和轉換率的趨勢不強有關？

Yeah. Thanks, Paul. I'll take the beginning and then Tom, you can weigh in on that too. One of the reasons we have a world is that it gives the buyers the flexibility to go after whatever trends may be out there. And we realize that they may shift from one world to another as time goes on, but there's always something going on with those trends. And those trends drive newness, which is so important for our customer, and we do think we have the ability to continue to deliver newness, which then obviously drives the traffic in our customers. Tom?

是的。謝謝，保羅。我先開始，然後湯姆，你也可以對此發表意見。我們擁有這個世界的原因之一是它讓買家能夠靈活地追隨可能出現的任何趨勢。我們意識到，隨著時間的推移，它們可能會從一個世界轉移到另一個世界，但這些趨勢總是會發生一些事情。這些趨勢推動了新鮮感，這對我們的客戶來說非常重要，我們確實認為我們有能力繼續提供新鮮感，這顯然會增加我們客戶的流量。湯姆？

I would add to that. We almost need to separate the two. Five Below was build and needs to be focused on newness inside the store. And the element of trend right does not necessarily relate to what is a trend out there, but what is it that our customers looking for. Through a narrow assortment, a focused assortment, speed, I think, and the ability to move quickly and shift and create this ability to bring newness constantly into our stores is a trend in itself.

我想補充一點。我們幾乎需要將兩者分開。 「五層以下」已經建成，需要注意店內的新穎性。趨勢正確的要素並不一定與那裡的趨勢有關，而是與我們的客戶正在尋找的是什麼有關。我認為，透過狹窄的品種、集中的品種、速度，以及快速行動和轉變的能力，以及創造這種不斷為我們的商店帶來新鮮感的能力，本身就是一種趨勢。

So it's how we reinvigorate our worlds, how we inject newness and how we focus on key items that will drive the biggest upside, we believe, for business. And then as a trend comes into fruition, then obviously that's an added benefit.

因此，我們相信，這就是我們如何重振我們的世界，如何注入新鮮感，如何專注於關鍵項目，從而為業務帶來最大的好處。然後，隨著趨勢的實現，顯然這是一個額外的好處。

Chuck Grom, Gordon Haskett.

查克·格羅姆，戈登·哈斯克特。

Hey, thanks a lot. Good afternoon. I just wanted to circle back to Seth's question. And just philosophically, can you guys talk -- or maybe Tom specifically, can you talk about your level of commitment to the Five Beyond strategy and if there's been any internal thoughts about moving away from it and having Five Below get back to its core roots of being priced $5 and below across the store? And if you were to do that, how do we think about the sort of one-time implications on sales and margins? Thanks.

嘿，非常感謝。午安.我只是想回到賽斯的問題。就哲學而言，你們能談談嗎？內部想法整個商店的定價為 5 美元或以下？如果你要這樣做，我們如何考慮對銷售額和利潤率的一次性影響？謝謝。

I'll start and then Ken can jump in. We think value is key, and Five Below is all about extreme value. We think price points in the $1 to $5 price point, a very important -- especially for our core customers, especially for mom and dad and kids coming into our stores and create that impulse environment and that arrival. We feel, Chuck, equally that value and opportunity at Five Beyond exists for Five Below. So we believe in that.

我先開始，然後肯可以加入。我們認為 1 至 5 美元的價格點非常重要，尤其是對於我們的核心客戶，尤其是對於進入我們商店並創造衝動環境和到達的父母和孩子。查克，我們同樣認為，五人之上的價值和機會也存在於五人之下。所以我們相信這一點。

What we want to do and we're focusing on is to make sure that our strategy applies the same principles in the Five Beyond as we try to do in the rest of the store of how we select product, how we added the product, and how we presented.

我們想要做的、我們關注的重點是確保我們的策略在「五個超越」中應用與我們在商店的其他部分中嘗試執行的相同原則，即如何選擇產品、如何添加產品以及我們如何呈現。

And then, Tom, I'll just -- I'll add to that. I mean that's related to the product. And then obviously, Chuck, we've got the Five Beyond prototype. I think that's another thing we're going to relook at in terms of what's appropriate for the presentation for our customer going forward with that Five Beyond product. Thanks, Chuck.

然後，湯姆，我會補充一點。我的意思是這與產品有關。顯然，查克，我們已經有了「五之外」原型。我認為這是我們要重新考慮的另一件事，即什麼適合向我們的客戶展示五超越產品。謝謝，查克。

Anthony Chukumba, Loop Capital Markets.

安東尼·楚昆巴 (Anthony Chukumba)，Loop 資本市場。

Thank you so much for taking my question. So you mentioned some complexity in the store and that being an issue and you did make -- somewhat a quick reference to that assistant self-checkout. So I guess my question is, are you reassessing assistant self-checkout as part of this restructuring effort? Thank you.

非常感謝您回答我的問題。因此，您提到了商店中的一些複雜性，這是一個問題，您確實對助理自助結帳做了一些快速參考。所以我想我的問題是，作為重組工作的一部分，您是否正在重新評估助理自助結帳？謝謝。

Yeah, thanks, Anthony. Related to the complexity in the stores I mentioned, I mean, there's a lot of things that we did to the stores over the years here that we require them to do. We introduce services. I mentioned shrink, right, and what shrink did.

是的，謝謝，安東尼。與我提到的商店的複雜性相關，我的意思是，多年來我們在這裡的商店做了很多我們要求他們做的事情。我們介紹服務。我提到了收縮，對吧，以及收縮做了什麼。

We went to associate scanning at our checkout. We're looking at that now, but where we're going to take that is probably back to where we were, where it's more of an associate-monitored process at the front of the store around ACO, which will actually probably work out better for us all around. But we're going to look at a lot of things that the stores are doing.

我們在結帳時進行了關聯掃描。我們現在正在考慮這個問題，但我們要採取的做法可能會回到我們原來的狀態，更多的是在 ACO 周圍商店前面進行員工監控的流程，這實際上可能會效果更好對於我們周圍的人來說。但我們將關注商店正在做的很多事情。

We're also looking at systems and other efficiencies to put in the stores to the extent we can save them time. It gives them the ability to repurpose that time, and then focus on the critical work that needs to be done. So really, that's one piece of a lot of things that we're going to be doing to simplify the work that goes on in the stores. And then also along with that, it's kind of a -- it's two sided where we're going to be hopefully reducing workload for them, but also, as Kristy mentioned, reinvesting in labor. Thanks, Anthony.

我們也正在考慮在商店中安裝系統和其他效率，以節省他們的時間。它使他們能夠重新利用這段時間，然後專注於需要完成的關鍵工作。事實上，這只是我們為簡化商店工作而要做的許多事情之一。除此之外，這是兩方面的，我們希望減少他們的工作量，而且，正如克里斯蒂所提到的，對勞動力進行再投資。謝謝，安東尼。

Joe Feldman, Telsey Advisory Group.

喬·費爾德曼，特爾西諮詢小組。

Yeah, hey, good morning, guys -- good afternoon, sorry. You've talked about trying to improve your focus on the customer and capturing demand from the customer. And it makes me think about we've asked -- we've collectively have asked you guys about a loyalty program for years. And I'm wondering how effective that could have been in helping to better understand your customer, better understand what they want, when they want, the prices they want. Any further thoughts on accelerating a loyalty program?

是的，嘿，早上好，夥計們——下午好，抱歉。您談到了嘗試提高對客戶的關注度並捕捉客戶的需求。這讓我想起我們多年來一直向你們詢問忠誠度計畫的問題。我想知道這對於幫助更好地了解您的客戶、更好地了解他們想要什麼、何時需要以及他們想要的價格有多大效果。關於加速忠誠度計畫還有什麼進一步的想法嗎？

Yeah. Thanks, Joe. You're right. We had talked about that for a while. I think that got caught up with a lot of those macro pressures and the other things that we dealt with post-pandemic. Fast forward to today, we are working on developing a program. It looks like we should probably have a possibly a test done, a very early test done by the end of the year.

是的。謝謝，喬。你說得對。我們已經討論過這個問題有一段時間了。我認為這受到了很多宏觀壓力以及我們在大流行後處理的其他事情的影響。快進到今天，我們正在開發一個程式。看來我們可能應該進行一次測試，在今年年底前進行非常早期的測試。

We'll see where that goes into next year. But to your point, we have kind of refocused on that, because we did. We did really work on that over the last few years, and we do view that as a potential driver for us too. Thanks, Joe.

我們將看看明年會發生什麼。但就你的觀點而言，我們已經重新關注了這一點，因為我們確實做到了。過去幾年我們確實在這方面做了很多工作，我們也確實認為這對我們來說是一個潛在的驅動力。謝謝，喬。

Brian Nagel, Oppenheimer.

布萊恩·內格爾，奧本海默。

Hi, good afternoon. Thanks for taking my questions. So I want to focus just on the store growth and maybe a two-part question. But we first have to understand better, you should talk about the moderation growth here, I guess, in '25. Should we be -- looked at that as -- from your standpoint, now recognizing there's a lot going on, is that a one-time pause? Or is this should this be how we're thinking about store growth potentially going forward?

嗨，下午好。感謝您回答我的問題。所以我想只關注商店的成長，也許還有一個由兩部分組成的問題。但我們首先必須更好地理解，我想，你應該在這裡談論 25 年的適度增長。我們是否應該——從你的角度來看——現在認識到發生了很多事情，這是一次性的停頓嗎？或者這應該是我們思考未來商店成長潛力的方式？

And then the second part of the question is, as you look at new store growth target here in the near term from what you had previously, is there any thinking behind the stores that you're not opening? Is it broad-based? Or are you changing strategy in some way?

問題的第二部分是，當你從先前的目標來看近期新店成長目標時，你不開店的背後是否有任何想法？其基礎廣泛嗎？還是你正在以某種方式改變策略？

Thanks, Brian. You're right. As we mentioned, we are going to moderate for 2025. We'll provide more detail as we move forward. Again, the key for doing that is to be able to focus on these initiatives. And to the extent that we see success coming out of our focus around product and value and store experience, we'll be able to provide more details on that.

謝謝，布萊恩。你說得對。正如我們所提到的，我們將在 2025 年進行調整。同樣，做到這一點的關鍵是能夠專注於這些舉措。如果我們看到我們對產品、價值和商店體驗的關注取得了成功，我們將能夠提供更多細節。

If I had to talk about it now, most likely it would be similar -- a similar growth rate that we're seeing. But the focus for us is to go back and build a great company. That's what we really need to do. And when we see that I think then we'll be able to answer more specific questions around growth, but that's what we see right now from a -- in the very near term from a growth perspective.

如果我現在必須談論它，很可能它會是類似的——我們看到的類似的成長率。但我們的重點是回去建立一家偉大的公司。這才是我們真正需要做的。當我們看到這一點時，我認為我們將能夠回答有關成長的更具體問題，但這就是我們現在從成長角度看到的情況。

Your comment around, I think it was around other store locations, we've always been a model that's had flexibility around being able to be successful in various locations. And I think that's going to continue for us at the end of the day, I mean, we're successful in urban locations in semi-rural, your typical shopping centers in rural areas. I think that opportunity is still out there for us.

您的評論，我認為是圍繞其他商店地點的，我們一直是一個能夠在不同地點取得成功的靈活性的模型。我認為這對我們來說最終會繼續下去，我的意思是，我們在半農村地區的城市地區、農村地區典型的購物中心取得了成功。我認為我們仍然有機會。

And as I mentioned, we remain a growth company. So we all feel very confident that that opportunity and white space and area for growth is still there for us. With that, thanks, Brian.

正如我所提到的，我們仍然是一家成長型公司。因此，我們都非常有信心，我們仍然存在這樣的機會、空白空間和成長領域。就這樣，謝謝，布萊恩。

Michael Montani, Evercore ISI.

邁克爾·蒙塔尼，Evercore ISI。

Hey, there. Good evening. Thanks for taking the questions. I just wanted to think through two lines of questioning. The first was on the SKU front. I don't know, Ken, if you can share kind of what the average SKU count was pre-pandemic, how high it had gotten, and now where you see it shaking out moving forward, as you mentioned, intensifying the focus.

嘿。晚安.感謝您提出問題。我只是想思考一下兩方面的問題。第一個是在 SKU 方面。 Ken，我不知道您是否可以分享一下大流行前的平均 SKU 數量是多少，它已經達到了多高，以及現在您看到它在哪裡震動，正如您提到的，加強了關注。

And then I guess the second part of the question was trying to better understand the store labor model and the two specific things that at week one is average hourly wages. We were thinking 13 to 14 an hour. And our I don't know if you'd care to comment on that where they need to go or if you're happy with that.

然後我想問題的第二部分是試著更好地理解商店勞動力模式以及第一週的平均小時工資這兩個具體內容。我們以為每小時 13 到 14 點。我不知道你是否願意對他們需要去的地方發表評論，或者你是否對此感到滿意。

And then the other one is store hours, are we talking about kind of low-single-digit increases in store hours kind of get the experience right? Or is it a more material investment than that?

另一個是商店營業時間，我們是在談論商店營業時間的低個位數成長以獲得正確的體驗嗎？還是比這更物質的投資？

Okay. Thanks Michael, on the SKU front. I'm not going to give you the details around the SKU counts and things like that. But suffice it to say, we had a -- I would call it a double-digit percentage increase in SKUs versus pre-pandemic. And that's us becoming over SKU-ed and over-assorted, as I discussed over the last several years, and we're going to get that back. As Tom mentioned, we're an item-driven business at the end of the day. So we're going to renew that focus and also renew a focus in terms of reducing those SKUs.

好的。謝謝邁克爾，在 SKU 方面。我不會向您提供有關 SKU 數量之類的詳細資訊。但我只想說，與大流行前相比，我們的 SKU 出現了兩位數的百分比增長。正如我在過去幾年中所討論的那樣，我們正在變得過度庫存和過度分類，我們將恢復這種狀態。正如湯姆所提到的，我們歸根結底是一家以產品為導向的企業。因此，我們將重新關注這一重點，並重新專注於減少這些 SKU。

In terms of store labor and hourly wages, we always want to remain competitive in the marketplace, and we've always been that way. So we've had to adjust our labor rates accordingly within the various markets around the country. We're going to continue to do that, because we have to remain competitive.

就商店勞動力和小時工資而言，我們始終希望在市場上保持競爭力，而且我們一直都是這樣。因此，我們必須根據全國各市場相應地調整勞動力價格。我們將繼續這樣做，因為我們必須保持競爭力。

And with regards to store hours, we will reinvest the hours that are necessary to be able to deliver the store experience that we need. We're going to be looking at the workloads. We're going to be looking at standards in terms of how long it takes to perform process and things like that. But at the end of the day, it has to be about the customer coming in and our stores and crew delivering a great experience for them. So that will drive the hours that we put back into the model. Thanks, Michael.

關於商店營業時間，我們將重新投入必要的時間，以便能夠提供我們所需的商店體驗。我們將關注工作負載。我們將根據執行流程所需的時間以及類似的事情來研究標準。但歸根結底，重要的是顧客進來，我們的商店和工作人員為他們提供良好的體驗。因此，這將推動我們投入模型的時間。謝謝，麥可。

David Bellinger, Mizuho.

大衛貝林格，瑞穗。

Thanks for the question. Just two parts. So Ken, you laid out a number of initiatives at the onset of your prepared remarks. What's the biggest near-term opportunity within that?

謝謝你的提問。只有兩個部分。肯，您在準備好的演講一開始就提出了一些倡議。其中最大的近期機會是什麼？

And then also connected to here, is there a specific category, maybe toys, beauty, et cetera, that we should be watching for as part of this edited assortment in order to get back to that core younger customer, and that eventually will lead to, call it, more spending across a complete store?

然後也與這裡相關的是，是否有一個特定的類別，也許是玩具、美容品等，我們應該在這個編輯過的分類中關注它，以便回到年輕的核心客戶，這最終將導致，稱其為，整個商店的更多支出？

Thanks, David. David, listen, we've always been a merchandise-driven business at the end of the day. So when I mentioned product and value, I think that leads across everything. And then again, I mentioned store experience is going to be critical to it. So we're going to make sure we focus on that.

謝謝，大衛。大衛，聽著，歸根結底，我們一直是一家以商品為導向的企業。因此，當我提到產品和價值時，我認為這會引領一切。我再次提到，商店體驗對其至關重要。所以我們要確保我們專注於此。

In terms of the areas of the business, where we can get back to that edited assortment and trend in quality, the beauty of Five Below, as I mentioned before, we've got eight worlds. And we have the ability to do that across all worlds, and that's what we're going to do. This isn't targeted against targeted or one area versus another. That's the beauty of our model that we have the ability to have this impact across all these worlds.

就業務領域而言，我們可以回到經過編輯的品種和品質趨勢，以及《五下》的美麗，正如我之前提到的，我們有八個世界。我們有能力在全世界做到這一點，這就是我們要做的。這並不是針對某個特定區域或某個區域相對於另一個區域。這就是我們模型的美妙之處，我們有能力對所有這些世界產生影響。

And then when we're humming, it has a cumulative effect on the business. So we are definitely going to go after it in all departments and areas and categories of the business. Thanks, David.

當我們哼唱時，它會對業務產生累積效應。因此，我們肯定會在所有部門、領域和業務類別中追求這一目標。謝謝，大衛。

Brad Thomas, KeyBanc Capital Markets.

Brad Thomas，KeyBanc 資本市場。

Hi. Thanks. Two follow-ups on some earlier topics. The first would be around the traffic and the self-checkout on initiatives and efforts underway here. I don't know if you quantified it, but do you have a sense if there's any quantification how much is impacting sales right now just to address that directly?

你好。謝謝。關於一些早期主題的兩個後續行動。第一個是關於這裡正在進行的舉措和努力的交通和自助結帳。我不知道你是否量化了它，但你是否知道是否有任何量化現在對銷售的影響有多大，只是為了直接解決這個問題？

And then secondly, just as you work on changing merchandising, Tom, if I go back and look at when we started the business in '22, we adjust for inflation, $5 would be closer to $9. Do we think we can do this still under $5 or should you be turning ourselves into $10 below just to throw it out there? Thanks.

其次，正如你致力於改變商品銷售一樣，湯姆，如果我回頭看看我們在 22 年開始經營業務時，我們會根據通貨膨脹進行調整，5 美元將更接近 9 美元。我們是否認為我們可以在 5 美元以下做到這一點，或者您是否應該將自己變成 10 美元以下只是為了把它扔掉？謝謝。

Thanks, Brett. I'll take the first part, Tom, if you want to take the second. Around self-checkout, Brad, you mentioned that would have an impact on processing and -- part of the work that we've done, we've surveyed customers and done intercepts and actually ranked pretty high in among other retailers in terms of speed and efficiency through self-checkout. So we do think that's appropriate for the stores at the end of the day, and our customers seem to appreciate it. So obviously, we're going to continue that.

謝謝，布雷特。湯姆，如果你想參加第二部分，我就參加第一部分。布拉德，關於自助結帳，您提到這會對處理產生影響——我們所做的部分工作，我們調查了客戶並進行了攔截，實際上在速度方面在其他零售商中排名很高通過自助結帳提高效率。因此，我們確實認為這最終適合商店，而且我們的顧客似乎也很欣賞它。顯然，我們將繼續這樣做。

We're just going to go about it a different way than what we've been doing recently to trying to mitigate shrink, because we think we can mitigate and control shrink by having that assisted -- associate-monitored area in self-checkout as opposed to the scanning side of it that we were doing for a while. So we're going to institute that over the next, say, 30 to 60 days. And then on the product --

我們只是要採取與最近所做的不同的方式來嘗試減少損耗，因為我們認為我們可以透過在自助結帳中設置輔助監控區域來減輕和控制損耗與我們一段時間以來所做的掃描方面相反。因此，我們將在接下來的 30 到 60 天內實施這項措施。然後是產品——

I think with regard to the product, you have a great point. Maybe the best way to answer it, as we look back to that, gee, I think we had a few less stores than we did today just as a starting point, which have put us in a different position. But I would tell you what I've been very impressed by. As I've spent time and we sat with the whole merchandising team inside the organization, to be honest with you, I think we need to focus on the areas that Ken outlined, create a disciplined, narrow focus on what's important inside the company, move away from the destructions.

我認為關於產品，你有一個很好的觀點。也許是回答這個問題的最佳方法，當我們回顧這一點時，哎呀，我認為我們的商店比今天少了一些，只是作為一個起點，這使我們處於不同的位置。但我會告訴你令我印象深刻的事。由於我花了時間與組織內部的整個銷售團隊坐在一起，說實話，我認為我們需要專注於 Ken 概述的領域，對公司內部重要的事情形成有紀律的、狹隘的關注，遠離破壞。

And I will tell you I've seen enough opportunity, and this team is ready to move. And they're ready to engage, and they're confidence in their ability to deliver on product, price points, and value. I've seen them so energized. So I must tell you I don't have any concern that this team will be able to deliver. It just will take some time, and we need to support them with some of the initiatives that Ken highlighted, and we'll be in a good place, I believe.

我會告訴你我已經看到了足夠的機會，而這個團隊已經準備好採取行動。他們已準備好參與，並且對自己提供產品、價格點和價值的能力充滿信心。我見過他們如此充滿活力。所以我必須告訴你，我並不擔心這個團隊能否交付成果。這只是需要一些時間，我們需要透過肯強調的一些舉措來支持他們，我相信我們會處於一個好的位置。

Jeremy Hamblin, Craig-Hallum Capital Group.

傑里米·漢布林 (Jeremy Hamblin)，克雷格·哈勒姆資本集團。

Thanks for taking the question. So first, just wanted to ask if -- you've always had all of your stores profitable on a four-wall basis. Want to make sure that that still stood.

感謝您提出問題。首先，我想問一下，您的所有商店是否總是在四面牆的基礎上實現盈利。想要確保它仍然存在。

And then just in terms of thinking about store development going forward, what do you think is your kind of new unit productivity expectations? And as you look into next year, cannibalization is something that's come up a little bit. How do you expect your overlap to be in 2025 in, let's say, new markets versus infill?

然後，就考慮未來商店的發展而言，您認為您對新單位生產力的期望是什麼？當你展望明年時，會出現一些問題。您預計 2025 年新市場與填充市場的重疊情況如何？

Thanks, Jeremy. In terms of the profitability of the stores, we're still in that position where our stores, across the board, deliver profit on a four-wall basis. So we're very pleased with that. And as we mentioned before, our new store economics are still leading. Even though they fallen off a little bit in the recent past, they're still tops out there in retail.

謝謝，傑里米。就門市的獲利能力而言，我們的門市仍處於四面牆基礎上全面獲利的狀態。所以我們對此非常滿意。正如我們之前提到的，我們的新店經濟效益仍然領先。儘管它們最近略有下降，但它們仍然是零售業中的佼佼者。

In terms of the unit productivity, for years, we were in that like 95% to 100% productivity. And if you recall back in the day, I would only say -- I don't know how long this is going to last, but now we're probably in that 80% to 85% range, which we think is reasonable and appropriate, keeping in mind to your point that we do have levels of cannibalization given the densification we're doing in markets. I would expect to consider to see those similar levels that we've experienced recently as we go forward.

就單位生產力而言，多年來我們的生產力一直維持在 95% 到 100% 左右。如果你回想起來，我只會說——我不知道這種情況會持續多久，但現在我們可能處於 80% 到 85% 的範圍內，我們認為這是合理且適當的，請記住你的觀點，鑑於我們在市場上所做的緻密化，我們確實存在一定程度的蠶食。我希望在我們前進的過程中考慮看到我們最近經歷過的類似水平。

But it's one of the things we can do, and it's having more data and more locations in the base to be able to look at performance. We've got some pretty good measurements in determining and estimating what cannibalization will be. So we'll take that into consideration. But I would say in the near term, we'll be looking at that. And I think Kristy has mentioned it in the last couple of quarters around that 80% to 85% productivity, I think that's reasonable in the near term. Thanks, Jeremy.

但這是我們可以做的事情之一，它擁有更多的數據和基地中的更多位置，以便能夠查看效能。我們已經有了一些非常好的測量方法來確定和估計蠶食將會是什麼。所以我們會考慮到這一點。但我想說，在短期內，我們會考慮這一點。我認為克里斯蒂在過去幾個季度中提到 80% 到 85% 的生產率，我認為這在短期內是合理的。謝謝，傑里米。

Melanie Nuñez, Bank of America.

梅蘭妮·努涅斯，美國銀行。

Hi. Thanks for taking my question here. So I know in the past you've talked about the spring and summer timeframe as being a bit more of a lull given the lack of events. I was just wondering if you could talk about back-to-school performance that's typically been a driver. Obviously, I know these assortment changes aren't coming through yet, but just any thoughts as we're in the midst of this and then how you're feeling entering the holidays? Thanks.

你好。感謝您在這裡提出我的問題。所以我知道你過去曾說過，由於缺乏活動，春季和夏季的時間框架有點平靜。我只是想知道你是否可以談談返校後的表現，這通常是司機的表現。顯然，我知道這些品種的變化還沒有實現，但是當我們處於這之中時，有什麼想法嗎？ 然後您在進入假期時感覺如何？謝謝。

Yes. Thanks, Melanie. The seasons are important to us. The Now section of the store is where we present our seasonal product. And Tom mentioned it too, we're all about newness, and it gives a chance for us to present that newness in the store. You mentioned spring and summer in a lull; actually, spring and summer should be a big season for us given the length of the season, kids are out of school, and what we can go after there.

是的。謝謝，梅蘭妮。季節對我們來說很重要。商店的“Now”部分是我們展示季節性產品的地方。湯姆也提到了這一點，我們都追求新鮮感，這給了我們在商店裡展示新鮮感的機會。你在平靜中提到了春天和夏天；事實上，考慮到季節的長度、孩子們失學以及我們可以去那裡做什麼，春季和夏季對我們來說應該是一個重要的季節。

With regards to back-to-school, again, I would say going forward in terms of the product assortment and some of the things I outlined that we're going to go after, that will affect the go-forward. Again, I think I mentioned we've pretty much bought up holiday, and we're going to go chase some items to drive the business. But we're not going to see an improvement until we have a chance to adjust that assortment, and we put the wow back in the assortment and the value. But again, we feel confident in our ability to go after that and refocus on the core customers and the products.

關於返校，我想說的是，在產品種類和我概述的一些我們將要追求的事情方面繼續前進，這將影響前進。我想我再次提到，我們幾乎已經買完了假期，我們將去追逐一些物品來推動業務。但是，除非我們有機會調整該品種，並且我們將令人驚嘆的品種和價值重新帶回，否則我們不會看到任何改進。但我們再次對我們追求這一目標並重新關注核心客戶和產品的能力充滿信心。

But as some as we've talked about, there's a lot of work to be done. I know it's only been several weeks in terms of all the analysis that we've done, but we've put together a plan that we're going to work on. But again, a lot of work needs to be done. And as I mentioned, the team is extremely energized and motivated and going after it. Thanks, Melanie.

但正如我們所討論的，還有很多工作要做。我知道我們完成的所有分析只花了幾週的時間，但我們已經制定了一個我們將要實施的計劃。但同樣，還有很多工作要做。正如我所提到的，該團隊非常充滿活力和動力，並不斷追求這一目標。謝謝，梅蘭妮。

This concludes our conference call and the Q&A session. At this time, I'd like to turn the call back over to Ken Bull for any closing remarks.

我們的電話會議和問答環節到此結束。現在，我想將電話轉回給肯·布爾 (Ken Bull)，讓其發表結束語。

Thanks, operator, and thank you all for joining us on the call today, and we look forward to updating you on our progress in a few months. Thanks, everyone.

謝謝操作員，感謝大家今天加入我們的電話會議，我們期待在幾個月內向您通報我們的最新進展。謝謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。