Foot Locker Inc (FL) 2023 Q1 法說會逐字稿

Good morning, and welcome to Foot Locker's First Quarter 2023 Financial Results Conference Call. (Operator Instructions) This conference call may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements, which are based on many assumptions and factors, including the impact of COVID-19, effects of currency fluctuations, customer preferences, economic and market conditions worldwide and other risks and uncertainties, described more fully in the company's press releases and reports filed with the SEC, including the most recently filed Form 10-K or Form 10-Q. Any changes in such assumptions or factors could produce significantly different results, and actual results may differ materially from those contained in the forward-looking statements. Please note that this conference is being recorded.

早上好，歡迎來到 Foot Locker 2023 年第一季度財務業績電話會議。 （操作員說明）本次電話會議可能包含反映管理層當前對未來事件和財務業績的看法的前瞻性陳述。管理層不承擔更新這些前瞻性陳述的義務，這些陳述基於許多假設和因素，包括 COVID-19 的影響、貨幣波動的影響、客戶偏好、全球經濟和市場狀況以及其他風險和不確定性，描述更多公司向美國證券交易委員會提交的新聞稿和報告中的全部內容，包括最近提交的 10-K 表格或 10-Q 表格。此類假設或因素的任何變化都可能產生截然不同的結果，實際結果可能與前瞻性陳述中包含的結果存在重大差異。請注意，此會議正在錄製中。

I will now, turn the call over to Robert Higginbotham, Interim Chief Financial Officer. Mr. Higginbotham, you may begin.

現在，我將把電話轉給臨時首席財務官羅伯特·希金波坦 (Robert Higginbotham)。 Higginbotham 先生，您可以開始了。

Thank you, operator. Welcome, everyone, to Foot Locker Inc.'s First Quarter Earnings Call. Today's call will reference certain non-GAAP measures. The reconciliation of GAAP to non-GAAP results is included in this morning's earnings release. Note, we have a slide presentation posted on our Investor Relations website with information that will be referenced during the call. .

謝謝你，運營商。歡迎大家參加 Foot Locker Inc. 的第一季度財報電話會議。今天的電話會議將參考某些非 GAAP 措施。 GAAP 與非 GAAP 結果的對賬包含在今天上午的收益發布中。請注意，我們在投資者關係網站上發布了幻燈片演示文稿，其中包含電話會議期間將參考的信息。 .

Today, we'll begin our prepared remarks with Mary Dillon, President and Chief Executive Officer; Frank Bracken, Executive Vice President and Chief Commercial Officer, will then give more detail on our operating results across our banners. Then, I will review our quarterly results and financial position in more detail and provide color on our updated 2023 guidance. Following our prepared remarks, Mary, Frank and I will respond to your questions.

今天，我們將與總裁兼首席執行官 Mary Dillon 一起開始準備好的發言；執行副總裁兼首席商務官 Frank Bracken 隨後將更詳細地介紹我們的經營業績。然後，我將更詳細地審查我們的季度業績和財務狀況，並為我們更新的 2023 年指南提供色彩。在我們準備好的發言之後，瑪麗、弗蘭克和我將回答您的問題。

With that, I'll now turn it over to Mary.

有了這個，我現在將它交給瑪麗。

Thank you, Rob, and good morning, everyone. Thank you for joining us today. We are now 2 months into the launch of our new Lace Up strategy, and there's a good deal of progress to update you on, even as the environment has become more challenging. On March 20, we hosted our Investor Day, where we unveiled the updated strategic direction for Foot Locker, which we call our Lace Up plan.

謝謝羅布，大家早上好。感謝您今天加入我們。我們推出新的 Lace Up 策略已有 2 個月了，即使環境變得更具挑戰性，我們也有很多進展可以向您通報。 3 月 20 日，我們舉辦了投資者日活動，公佈了 Foot Locker 的最新戰略方向，我們稱之為 Lace Up 計劃。

Let me reiterate the premise of the plan. We operate in a large growth category with strong tailwinds. We have many assets to leverage like our 50-year heritage in the industry and our leading brand equity in the marketplace. The underlying principle of our plan is that with the right focus, investments and capabilities will more fully participate in the rapid secular growth of the category, and return our business to sustainable growth following this year, our reset year. Our conviction lies in the fact that Foot Locker occupies a unique place in the sneaker ecosystem as the #1 global brand synonymous with sneakers and sneaker culture. We have a 50-year authentic history around street basketball in use culture. And we are truly an iconic brand with over 90% brand awareness and social media engagement that dwarfs our competitors. And we're a favorite brand with the teen consumer who is the driver of future trends. By simplifying our business and investing in our core assets and capabilities, we'll be able to better harness that brand equity and drive sustainable long-term growth through the 4 new strategic imperatives that make up our Lace Up plan.

讓我重申該計劃的前提。我們經營的業務增長強勁，順風順水。我們有許多資產可以利用，比如我們 50 年的行業傳統和我們在市場上的領先品牌資產。我們計劃的基本原則是，通過正確的重點，投資和能力將更充分地參與該類別的快速長期增長，並使我們的業務在今年（我們的重置年）之後恢復可持續增長。我們的信念在於，Foot Locker 作為運動鞋和運動鞋文化的代名詞，在運動鞋生態系統中佔有獨特的地位。我們在街頭籃球使用文化方面擁有 50 年的真實歷史。我們確實是一個標誌性品牌，擁有超過 90% 的品牌知名度和社交媒體參與度，令我們的競爭對手相形見絀。我們是青少年消費者最喜歡的品牌，他們是未來趨勢的驅動力。通過簡化我們的業務並投資於我們的核心資產和能力，我們將能夠更好地利用該品牌資產並通過構成我們 Lace Up 計劃的 4 項新戰略要求推動可持續的長期增長。

In the first imperative, we will expand sneaker culture by serving more sneaker occasions, providing more choice and driving greater distinction to tap into the inner sneaker head in all of us. Our second imperative is the power of the portfolio by creating clearer lanes for our banners and transforming our real estate footprint by opening new formats, shifting off mall and closing underperforming stores. Our third imperative is to deepen our relationships with customers by reimagining and relaunching our loyalty program and building better CRM capabilities. And the fourth imperative is to be best-in-class omni by increasing our digital mix by improving the digital experience for our customers, as well as the connectivity between channels underpinned by systems improvements. As we begin to bring the Lace Up plan to live my conviction and confidence in the direction we're charging and the team's rapid execution of the plan is just continuing to grow. However, since our Investor Day in the face of increasing macro headwinds, our sales trends have slowed significantly, just in the past 1.5 months which will have an impact on our near-term results.

在第一要務中，我們將通過服務於更多運動鞋場合、提供更多選擇並推動更大差異化來擴展運動鞋文化，以挖掘我們所有人內心的運動鞋頭腦。我們的第二個當務之急是通過為我們的橫幅創造更清晰的通道並通過開設新格式、轉移購物中心和關閉表現不佳的商店來改變我們的房地產足跡來發揮投資組合的力量。我們的第三個當務之急是通過重新構想和重新啟動我們的忠誠度計劃並建立更好的 CRM 功能來加深我們與客戶的關係。第四個當務之急是通過改善客戶的數字體驗以及以系統改進為基礎的渠道之間的連接來增加我們的數字組合，從而成為一流的全方位服務。當我們開始實施 Lace Up 計劃以實現我對我們前進方向的信念和信心時，團隊對該計劃的快速執行正在繼續增長。然而，自從我們面對越來越大的宏觀逆風的投資者日以來，我們的銷售趨勢在過去 1.5 個月內顯著放緩，這將對我們的近期業績產生影響。

In the first quarter, our comps fell by 9.1%, resulting in adjusted EPS of $0.70, somewhat below our original expectations given the softer-than-expected trends that materialize beginning in April and have continued into May. Rob will go into more detail later in the call, but the recent softness has resulted in us taking a more aggressive promotional stance to drive demand and to effectively manage our inventory, and we're reducing our guidance for the year to reflect that. To give you some greater color on what we're seeing, following a much better-than-expected holiday season, we've seen the consumer retrench as they continue to face pressure from rapid inflation, which we see squeezing their ability to spend on discretionary items, including athletic footwear. In addition to overall discretionary spend seeing some pressure, those spending dollars also appear to be directed more towards services and away from products, as consumers are forced to be more choiceful on how to spend their money.

在第一季度，我們的收入下降了 9.1%，導致調整後的每股收益為 0.70 美元，略低於我們最初的預期，因為從 4 月開始出現並一直持續到 5 月的趨勢低於預期。 Rob 稍後將在電話中詳細介紹，但最近的疲軟導致我們採取更積極的促銷立場來推動需求並有效管理我們的庫存，我們正在減少今年的指導以反映這一點。為了讓您對我們所看到的情況有更多了解，在假期好於預期之後，我們看到消費者緊縮，因為他們繼續面臨快速通貨膨脹的壓力，我們認為這會擠壓他們的消費能力可自由支配的物品，包括運動鞋。除了總體可自由支配支出面臨一些壓力外，這些支出似乎也更多地用於服務而不是產品，因為消費者被迫在如何花錢方面做出更多選擇。

When we gave guidance, we are seeing steep comp declines given a number of factors: our reset with Nike, our transition of the Champs banner, our shutdown of the Eastbay banner, and a 10% decline in average tax refunds, which have an outsized impact on our business given we over index to a lower-income consumer. As part of our guidance, we had forecasted a pickup in growth in April, as we move past the tax refund drag and benefited from a more favorable launch calendar during the month. And while trends did improve, they did not improve nearly to the extent we expected, and that weakness has continued into May. As a result, we increased our promotional activity late in the first quarter and more so in the second quarter. And we expect that level of promotional activity to continue through the balance of the year, which will allow us to clear inventory and bring more newness to our customers. So while 2023 was always going to be a reset year for us, we now expect a sharper decline in both sales and earnings this year, due to steeper macro headwinds, combined with the other dynamics of our transition just mentioned.

當我們給出指導時，由於多種因素，我們看到薪酬急劇下降：我們與 Nike 的重置、Champs 橫幅的過渡、Eastbay 橫幅的關閉以及平均退稅下降 10%，這對鑑於我們過度關注低收入消費者，對我們業務的影響。作為我們指導的一部分，我們曾預測 4 月份的增長會有所回升，因為我們已經擺脫了退稅的拖累，並受益於當月更有利的發布日曆。雖然趨勢確實有所改善，但並未達到我們預期的程度，而且這種疲軟一直持續到 5 月。因此，我們在第一季度末增加了促銷活動，第二季度更是如此。我們預計這一水平的促銷活動將持續到今年剩餘時間，這將使我們能夠清理庫存並為我們的客戶帶來更多新鮮事物。因此，雖然 2023 年對我們來說總是重新開始的一年，但我們現在預計，由於更大的宏觀逆風，再加上我們剛剛提到的轉型的其他動力，今年的銷售額和收益將出現更大幅度的下降。

Despite the challenging environment, we remain confident in the Lace Up plan as a road map to return us to sustainable growth next year.

儘管環境充滿挑戰，但我們仍然對 Lace Up 計劃充滿信心，將其作為我們明年恢復可持續增長的路線圖。

With that, let me update you on our progress so far, on the Lace Up plan strategic imperatives. The first imperative is to expand sneaker culture, which has 3 major components: serve more sneaker occasions, provide more choice and drive greater distinction. I'll begin by commenting on the reset of our relationship with Nike. While the first quarter began to see the impact of the reset on our business, we did see strong results on a relative basis in our Nike and Jordan basketball business. Retro sell-throughs albeit at reduced quantities were very good. Nike and Jordan Signature Basketball delivered strong gains, including the LeBron 20, the launch of the Job 1, the Tatum 1 and Luca 1. And we believe the future of basketball is very exciting with these next-generation players, leading the way. Meanwhile, the culture of basketball also continues to connect with consumers through models like the Jordan 1, Nike Dunk and of course, the Air Force 1. And I continue to be encouraged by the strong engagement of our mutual teams, as we continue to partner around our areas of strategic alignment and strength. Basketball, kids and sneaker culture. In fact, our teams were together this week in Portland to plan our return to growth in our Nike business in 2024. We're also partnering closely on data sharing and building a stronger joint capability around demand creation for our shared customers and marketplace.

有了這個，讓我向您介紹我們迄今為止在 Lace Up 計劃戰略要務方面的進展。當務之急是拓展球鞋文化，它有3個主要組成部分：服務更多的球鞋場合、提供更多的選擇和推動更大的差異化。我將首先評論我們與耐克關係的重置。雖然第一季度開始看到重置對我們業務的影響，但我們確實在耐克和喬丹籃球業務的相對基礎上看到了強勁的業績。復古銷售雖然數量減少但非常好。 Nike 和 Jordan Signature Basketball 帶來了強勁的收益，包括 LeBron 20、Job 1、Tatum 1 和 Luca 1 的推出。我們相信籃球的未來非常令人興奮，因為這些下一代球員將引領潮流。與此同時，籃球文化也通過 Jordan 1、Nike Dunk，當然還有 Air Force 1 等款式繼續與消費者建立聯繫。隨著我們繼續合作，我們共同團隊的積極參與繼續鼓舞著我圍繞我們的戰略調整和優勢領域。籃球、兒童和運動鞋文化。事實上，我們的團隊本周齊聚波特蘭，計劃在 2024 年恢復耐克業務的增長。我們還在數據共享方面密切合作，並圍繞為我們共同的客戶和市場創造需求建立更強大的聯合能力。

Beyond continuing to partner with Nike in our mutual areas of customer focus, we will continue to serve more sneaker occasions and provide more choice, consistent with the desires of our customers. This will mean continuing to diversify our assortment through the ongoing rollout of brands like ON and HOKA on the performance side. Both of which continue to see strong sell-through in current doors. ON is now in over 250 doors globally with HOKA in about 100. On the casual side, we're also adding Hey Dude to 450 doors across banners in North America. As the Hay Dude brand is becoming increasingly adopted by the fashion forward expressionist, especially suburban young males, we see an opportunity to connect with those consumers through our banners, while also bringing new styles and stories to our core customer, the Sneaker Maven. We also continue to see strong growth from brands like New Balance, Puma and ASICS as well as outperformance in the Adidas brand, resulting in the diversity of our brand mix beyond our top brand Nike, increasing to 35% from 33% last year.

除了在我們共同關注客戶的領域繼續與耐克合作外，我們還將繼續為更多運動鞋場合提供服務並提供更多選擇，以滿足客戶的需求。這將意味著通過在性能方面不斷推出 ON 和 HOKA 等品牌，繼續使我們的產品種類多樣化。兩者都繼續看到當前門的強勁銷售。 ON 現在在全球有超過 250 家門，HOKA 大約有 100 家。在休閒方面，我們還在北美的 450 家橫幅廣告中添加了 Hey Dude。隨著 Hay Dude 品牌越來越多地被時尚前衛的表現主義者所採用，尤其是郊區的年輕男性，我們看到了通過我們的橫幅與這些消費者建立聯繫的機會，同時也為我們的核心客戶 Sneaker Maven 帶來了新的風格和故事。我們還繼續看到 New Balance、Puma 和 ASICS 等品牌的強勁增長，以及阿迪達斯品牌的出色表現，導致我們的品牌組合多元化，超越頂級品牌耐克，從去年的 33% 增加到 35%。

On serving more distinction, our exclusive mix of sales was 15% during the quarter, flat to last year. While still early days in our strategy to push that higher, we're pleased with our pipeline and evolving collaborative relationships with our brand partners, to help drive that to 25% by 2026. We added excitement to basketball in the first quarter through our exclusive LaMelo Ball Times Puma, which drove excitement during All-Star weekend with the Rick and Morty collaboration. Our exclusive Nike Air positioned in Tuned Air drove very strong results, especially through the soccer inspired material story, which performed well in international markets. And our Reebok times and well exclusive was also very well received by consumers. And finally, in apparel, our private label team is doing a great job with our brands increasing from 7% to 11% of total apparel sales led by growth in Locker and Cozi, both up over 50%.

在提供更多特色服務方面，本季度我們的獨家銷售組合為 15%，與去年持平。雖然我們的戰略仍處於早期階段，但我們對我們的渠道和與品牌合作夥伴不斷發展的合作關係感到滿意，以幫助到 2026 年將這一比例提高到 25%。我們在第一季度通過我們的獨家LaMelo Ball Times Puma，在全明星周末期間與 Rick and Morty 的合作引起了興奮。我們在 Tuned Air 中定位的獨家 Nike Air 帶來了非常強勁的結果，尤其是通過受足球啟發的材料故事，在國際市場上表現良好。而我們的Reebok times and well exclusive也很受消費者歡迎。最後，在服裝方面，我們的自有品牌團隊表現出色，在 Locker 和 Cozi 的帶動下，我們的品牌佔服裝總銷售額的比例從 7% 增加到 11%，均超過 50%。

The next imperative is power up the portfolio, which includes creating distinct lanes for our banners and optimizing our real estate. On distinct lanes, we are on track to close our side set banner in Europe by the middle of the year. And our transition of Champs to focus more on the active athlete segment is also making progress. With our current more distinct collection of 5 banners, we'll be able to differentiate more clearly in the marketplace, as well as optimally cover more of the sneaker consumer market.

下一個當務之急是加強投資組合，包括為我們的橫幅創建不同的通道和優化我們的房地產。在不同的道路上，我們有望在年中之前關閉我們在歐洲的一面旗幟。我們將 Champs 轉變為更多地關注活躍的運動員細分市場也在取得進展。憑藉我們目前更獨特的 5 條橫幅系列，我們將能夠在市場上更加明顯地脫穎而出，並以最佳方式覆蓋更多的運動鞋消費市場。

In terms of real estate transformation, in the first quarter, we opened or converted 11 new Foot Locker community and Power Stores across the globe, giving us 184 stores in these bigger formats, that allow us to offer a fuller expression of the category and sharpen our competitive edge in the marketplace. Our new formats now represent 12% of our global square footage, up from 9% a year ago, as we grow towards our target of 20% by 2026. Across all of our banners, off-mall now represents 35% of our North America square footage, up from 31% last year, as we march towards our target of over 50% by 2026. Both our new formats and off-mall doors are outcomping the rest of our fleet, which continues to give us conviction in the strategy. Lastly, as part of our real estate transformation, we closed 35 underperforming stores during the quarter, which will allow us to focus on our higher-quality locations.

在地產轉型方面，第一季度，我們在全球開設或改造了 11 家新的 Foot Locker 社區和 Power Stores，使我們擁有 184 家更大業態的門店，使我們能夠提供更全面的品類表達和銳化。我們在市場上的競爭優勢。隨著我們朝著到 2026 年 20% 的目標發展，我們的新業態現在占我們全球面積的 12%，高於一年前的 9%。在我們所有的橫幅廣告中，場外購物中心現在占我們北美地區的 35%平方英尺，高於去年的 31%，我們正在朝著到 2026 年超過 50% 的目標邁進。我們的新業態和非商場門都超過了我們其他車隊，這繼續讓我們對這一戰略充滿信心。最後，作為我們房地產轉型的一部分，我們在本季度關閉了 35 家表現不佳的商店，這將使我們能夠專注於我們更高質量的地點。

Moving on to our progress to deepen our relationship with our customers. We continue to work on enhancing our loyalty program and our overall CRM capabilities. During the first quarter, we launched our current FLX program in Canada, where we'll be conducting the pilot of our new loyalty program later this year. Approximately 25% of sales in the first quarter were through our current loyalty program, similar to last year. By launching our new program next year, we continue to expect to drive improvement in sales penetration of loyalty to 50% by 2026 and 70% long term. We also continue to develop and test new CRM capabilities with the team, making progress by standing up additional CRM campaigns to drive frequency and retention. Examples include, recommending the next best product for you based on your past purchases as well as a notification that a product in your cart is selling fast.

繼續我們的進步，以加深我們與客戶的關係。我們繼續致力於增強我們的忠誠度計劃和我們的整體 CRM 能力。第一季度，我們在加拿大推出了當前的 FLX 計劃，我們將在今年晚些時候在那裡進行新忠誠度計劃的試點。第一季度約 25% 的銷售額來自我們當前的忠誠度計劃，與去年相似。通過明年啟動我們的新計劃，我們繼續期望到 2026 年將忠誠度的銷售滲透率提高到 50%，並在長期內提高到 70%。我們還繼續與團隊一起開發和測試新的 CRM 功能，通過開展額外的 CRM 活動來提高頻率和保留率，從而取得進展。示例包括，根據您過去的購買情況為您推薦下一個最好的產品，以及通知您購物車中的產品銷售速度很快。

And then, our last imperative to be best-in-class omni which means improving our digital presence as well as better integrating our channels with each other. In digital, we've already made early progress in improving conversion through enhancements, including adding more calls to action, improve product recommendations, as well as technical improvements at a decreased error rates on our site. While our digital sales penetration for the quarter was flat versus last year, excluding Eastbay, we saw trends improved through the quarter with our April digital percent of sales, ending up year-over-year and above our plan, putting us on a strong early path towards our goal of reaching 25% by 2026, up from about 16% today. In stores, we continue to roll out upgraded handhelds across our store fleet, adding over 800 stores this quarter, giving our stripers improved visibility on inventory access to product information and ability to check out customers and improving in-store conversion. We now have updated handhelds at over 50% of our stores, up from 21% at the end of last year, and still expect to be fully rolled out by -- to 100% of the fleet by the end of this year. And as a key enabler to our strategy, our investments in technology are off to a great start. We've created agile delivery technology pods with our teams to increase speed to market and value creation more quickly.

然後，我們最後的當務之急是成為一流的全能，這意味著改善我們的數字存在以及更好地將我們的渠道相互整合。在數字方面，我們已經通過增強功能在提高轉化率方面取得了早期進展，包括添加更多號召性用語、改進產品推薦以及技術改進以降低我們網站上的錯誤率。儘管我們本季度的數字銷售滲透率與去年持平（不包括 Eastbay），但我們看到整個季度的趨勢有所改善，我們 4 月份的數字銷售額百分比最終同比高於我們的計劃，這使我們早日取得了強勁的進展到 2026 年達到 25% 的目標，高於目前的 16%。在商店中，我們繼續在我們的商店車隊中推出升級的手持設備，本季度增加了 800 多家商店，使我們的脫衣舞者提高了對產品信息的庫存訪問的可見性，並能夠檢查客戶並提高店內轉化率。我們現在已經在超過 50% 的商店更新了手持設備，高於去年年底的 21%，並且仍然預計到今年年底將全面推出 - 到 100% 的車隊。作為我們戰略的關鍵推動因素，我們對技術的投資有了一個良好的開端。我們與我們的團隊一起創建了敏捷交付技術艙，以加快上市速度和更快地創造價值。

Over the last quarter, we focus on areas that directly impact our customer, digital and loyalty. Changes that begin to remove friction points for our customers and improve the digital experience we provide from improved search, add to cart and the payment experience have all already improved, resulting in conversion improvements and NPS growth. In fact, our experimentation pod focused on e-commerce wins has already proven over $30 million in incremental sales with new experiences and campaigns, much more to come. Taken together, we're excited about what the team has been able to accomplish over the last couple of months with more in store for the future.

在上個季度，我們專注於直接影響我們的客戶、數字和忠誠度的領域。開始為我們的客戶消除摩擦點並改善我們通過改進搜索、添加到購物車和支付體驗提供的數字體驗的變化都已經得到改善，從而提高了轉化率和 NPS 增長。事實上，我們專注於電子商務勝利的實驗艙已經通過新的體驗和活動證明了超過 3000 萬美元的增量銷售額，還有更多。總而言之，我們對團隊在過去幾個月中取得的成就感到興奮，並為未來準備了更多。

So in summary, while early days since we've launched our new strategy, we're building momentum and gaining traction across all of our key strategic initiatives and remain excited and committed to reaching our goals and returning to long-term sustainable growth. We also continue to strengthen and invest in our already talented leadership team, following the recent key hires at Adrian Butler as our new Chief Technology Officer; and Kim Waldmann as our new Chief Customer Officer. We just announced that we brought on Blanca Gonzalez as Senior Vice President and General Manager of the WSS banner. Blanca joins us from Nike, where she served as Vice President of North America product merchandising. She brings nearly 20 years of experience in the category across various areas, and we couldn't be more excited to have her take leadership of our high-growth WSS banner with a unique focus on the Latino community. Welcome, Blanca. We also announced this morning that Mike Baughn will be joining us our new CFO starting next month. Mike joins us from Kohl's, where he most recently served as Executive Vice President of Finance and Treasurer, and brings him over 15 years of retail finance experience. I'm incredibly excited for Mike to come on board to help us deliver on our Lace Up plan goals. Welcome, Mike. Rob will be returning to his prior role as Head of IR and FP&A and I'd like to thank him for his leadership of the finance organization, while we conducted the search and for his ongoing contribution, including helping to lead the Lace Up plan. We truly have the best team in retail.

因此，總而言之，自從我們推出新戰略以來的早期，我們正在建立勢頭並在我們所有的關鍵戰略舉措中獲得牽引力，並保持興奮並致力於實現我們的目標並恢復長期可持續增長。在最近聘請 Adrian Butler 擔任我們的新首席技術官之後，我們還繼續加強和投資我們已經很有才華的領導團隊； Kim Waldmann 擔任我們的新首席客戶官。我們剛剛宣布聘請 Blanca Gonzalez 擔任 WSS 旗幟的高級副總裁兼總經理。布蘭卡從耐克加入我們，在那裡她擔任北美產品營銷副總裁。她在該類別的各個領域擁有近 20 年的經驗，讓她領導我們高增長的 WSS 旗幟並特別關注拉丁裔社區，我們感到無比興奮。歡迎，布蘭卡。我們今天早上還宣布 Mike Baughn 將從下個月開始加入我們的新首席財務官。 Mike 從 Kohl's 加入我們，他最近擔任該公司的財務執行副總裁兼財務主管，並為他帶來了超過 15 年的零售金融經驗。我非常高興 Mike 能加入我們，幫助我們實現我們的 Lace Up 計劃目標。歡迎，邁克。 Rob 將回到他之前擔任 IR 和 FP&A 主管的角色，我要感謝他在我們進行搜索時對財務組織的領導以及他持續的貢獻，包括幫助領導 Lace Up 計劃。我們確實擁有零售業最好的團隊。

So let me close by thanking the Foot Locker team for their dedication to executing on this challenging backdrop. I'm confident in our ability to navigate this environment, as we continue to make progress on our long-term strategy.

最後，讓我感謝 Foot Locker 團隊在這個充滿挑戰的背景下所付出的努力。隨著我們在長期戰略上繼續取得進展，我對我們駕馭這種環境的能力充滿信心。

And now, let me hand it over to Frank to provide more detail on our performance and important milestones by banner.

現在，讓我交給弗蘭克，通過橫幅提供更多關於我們的表現和重要里程碑的細節。

Thank you, Mary, and good morning, everyone. By category, footwear comped down high single digits, while apparel and accessories fell mid-teens. Lifestyle running was the category with the most disappointing sell-through for the quarter. As many of the styles were carryover from holiday '22, and were promoted throughout the Q4 season, the consumer was resistant to a return to oil price selling in Q1 2023. That, combined with lower tax refunds and a challenging financial picture for our lower-income customers created a significant headwind for our marquee lifestyle running franchises, which are normally full priced from $120 to $200.

謝謝你，瑪麗，大家早上好。按類別劃分，鞋類下降了高個位數，而服裝和配飾下降了十幾歲。生活方式跑步是本季度銷量最令人失望的類別。由於許多款式是 22 年假期的結轉款，並在整個第 4 季度進行了促銷，因此消費者對 2023 年第 1 季度的油價回歸銷售持抵觸情緒。再加上較低的退稅和我們較低的財務狀況具有挑戰性- 收入客戶對我們的大型生活方式經營特許經營權造成了巨大的阻力，這些特許經營權的全價通常在 120 美元到 200 美元之間。

Early Q1 sales in boots were also very soft. And, as we exited the quarter and entered spring seasonal selling, we experienced a soft start with CANVAS and skate inspired books. As we moved into April, we began aggressive promotions to help stimulate demand and move through inventory. While macro factors, in addition to our reset with Nike and her Champs transition resulted in steep comp declines. We also see many encouraging signs within the category. In footwear, New Balance continues to be our best-performing brand, growing nearly 100% during the quarter with strength in franchises, including 2002R, 9060 and the 530. Signature Basketball was also a bright spot, with the successful early launches of the Job 1 with Nike, the LeBron 20 as well as Jordan Signature shoes from Jason Tatum and Luca Doncic, in addition to the ongoing strength of our exclusive LaMelo Ball franchise with Puma. Combined with strong Jordan Retro sales and classic court stops from Nike, we remain excited about our position at the heart of basketball culture. Performance running has also been strong, aided by ON, HOKA, Brooks and ASICS, which all continue to grow substantially, giving us continued belief that we can serve more occasions for the active athlete and those consumers looking for performance sneakers. And there have been very positive early reads behind soccer inspired looks like the Samba and Gazelle by Adidas, which will be a key story for us at back-to-school and holiday this year.

第一季度早期的靴子銷售也非常疲軟。而且，當我們退出本季度並進入春季季節性銷售時，我們經歷了 CANVAS 和滑板書籍的軟啟動。隨著我們進入 4 月，我們開始積極促銷以幫助刺激需求和清理庫存。雖然宏觀因素，除了我們與耐克的重置和她的冠軍過渡導致薪酬急劇下降。我們還在該類別中看到許多令人鼓舞的跡象。在鞋類領域，New Balance 繼續成為我們表現最好的品牌，本季度增長近 100%，包括 2002R、9060 和 530 在內的特許經營權。Signature Basketball 也是一個亮點，早期成功推出了 Job 1 與 Nike、LeBron 20 以及來自 Jason Tatum 和 Luca Doncic 的 Jordan Signature 鞋，此外還有我們與 Puma 的獨家 LaMelo Ball 特許經營權的持續實力。結合強勁的 Jordan Retro 銷售和 Nike 的經典球場停球，我們對我們在籃球文化核心的地位仍然感到興奮。在 ON、HOKA、Brooks 和 ASICS 的幫助下，高性能跑步也很強勁，它們都在繼續大幅增長，讓我們繼續相信我們可以為活躍的運動員和那些尋找高性能運動鞋的消費者提供更多場合。在阿迪達斯的 Samba 和 Gazelle 等受足球啟發的造型背後，早期讀物非常積極，這將成為我們今年返校和假期的重要故事。

While our overall apparel business was down significantly, as Mary mentioned, our private label brands have maintained momentum growing 13% during the quarter, driven by particular strength from our new labels, Locker and Cozi, and we see emerging momentum in apparel materialization like woven bottoms and the opportunity to build new tech and outdoor-inspired collections. Importantly, even in the tougher backdrop, the consumer is still showing up for newness in key selling moments. This past weekend was a prime example where the release of the Jordan Retro or Thunder generated incredible excitement and sell-out results. Our New Balance Grade A activations drove strong omni sales, and our celebration of Mother's Day lifted our women's footwear business significantly. And, while we continue to expect a challenging backdrop for the consumer for the balance of the year, as we look ahead, we are excited about the building energy in the footwear category for the back half. Including the scaling of Nike Signature Basketball models at holiday during the '23, '24 season tip off and key icons like the Nike Dunk. Rihanna's renewed collaboration with Puma launching again this holiday, the launch of Anthony Edwards Signature Basketball shoe with Adidas, increased supply of models like the Adidas Samba and Gazelle at back-to-school, which are gaining momentum, improved inventory levels and brand presentation for New Balance life style running in court franchises and the ongoing door expansion of key growth partners ON and HOKA. With ON expected to reach 350 doors later this year, up from over 250 today, and HOKA to 150 doors, up from 100 today.

正如 Mary 所提到的，雖然我們的整體服裝業務大幅下滑，但我們的自有品牌在本季度保持了 13% 的增長勢頭，這主要得益於我們的新品牌 Locker 和 Cozi 的強勁增長，而且我們看到了機織等服裝實體化的新興勢頭下裝以及構建新技術和戶外風格系列的機會。重要的是，即使在更艱難的背景下，消費者仍然會在關鍵的銷售時刻出現以求新鮮。過去的這個週末就是一個典型的例子，Jordan Retro 或 Thunder 的發布產生了令人難以置信的興奮和銷售結果。我們的 New Balance A 級活動推動了強勁的全方位銷售，我們對母親節的慶祝活動顯著提升了我們的女鞋業務。而且，雖然我們繼續預計消費者在今年餘下時間將面臨挑戰，但展望未來，我們對下半年鞋類產品的建築能量感到興奮。包括 Nike Signature Basketball 模型在 '23、'24 賽季結束時的假期縮放以及 Nike Dunk 等關鍵圖標。蕾哈娜 (Rihanna) 在這個假期再次與彪馬 (Puma) 重新合作，與阿迪達斯 (Adidas) 推出安東尼·愛德華茲 (Anthony Edwards) 標誌性籃球鞋，增加返校時阿迪達斯 Samba 和 Gazelle 等款式的供應，這些款式勢頭強勁，庫存水平提高，品牌展示也有所改善New Balance life style 在法院特許經營中運行，以及主要增長合作夥伴 ON 和 HOKA 的持續擴張。預計 ON 將在今年晚些時候達到 350 扇門，高於今天的 250 多扇，HOKA 將達到 150 扇，高於今天的 100 扇。

By channel, comparable sales in our stores decreased 7.4%, driven mainly by traffic declines, but also from conversion and some pressure on average ticket. Digital comps fell by 16.8%. However, excluding Eastbay, the e-com-only banner we wound down late last year, digital comps declined by 9.5%, with improving conversion trends through the quarter as we capitalized on the quick digital wins that Mary described. Digital penetration of total sales was 16.3% down from approximately 18% last year on a reported basis, but flat to last year, excluding Eastbay.

按渠道劃分，我們商店的可比銷售額下降了 7.4%，這主要是由於客流量下降，但也來自轉化率和平均票價的一些壓力。數字公司下降了 16.8%。然而，不包括 Eastbay，這是我們去年底關閉的純電子商務旗幟，數字 comps 下降了 9.5%，隨著我們利用 Mary 描述的快速數字勝利，本季度的轉化趨勢有所改善。根據報告，總銷售額的數字化滲透率從去年的約 18% 下降到 16.3%，但與去年持平，不包括 Eastbay。

In North America, overall comps declined by 12.8% with pockets of strength offset by the drag from lower tax refund dollars and the reset of Nike in North America. At Foot Locker North America, comps fell by 5.5% with the consumer and product headwinds cited above, offsetting strength in Signature Basketball and performance running. Encouragingly, our power and community stores outcomped the balance of chain in Q1 by several percentage points. Key new store openings during the quarter included a community store in Baltimore, an off-mall power store in Dallas-Fort Worth and a power store in Miami. And, we are also encouraged by some new tactics we have deployed in digital media and customer targeting. In several test programs we launched this quarter, the return on ad spend we delivered encourages us to believe that we can scale the tactics and improve our digital business throughout the rest of the year.

在北美，整體收入下降了 12.8%，但由於較低的退稅美元和耐克在北美的重置所帶來的拖累抵消了一些實力。在 Foot Locker North America，由於上述消費者和產品逆風，收入下降了 5.5%，抵消了 Signature Basketball 和性能跑步的實力。令人鼓舞的是，我們的電力和社區商店在第一季度比連鎖店的平衡高出幾個百分點。本季度新開的主要商店包括巴爾的摩的一家社區商店、達拉斯-沃思堡的一家商場外商店和邁阿密的一家商店。而且，我們還對我們在數字媒體和客戶定位方面部署的一些新策略感到鼓舞。在我們本季度推出的幾個測試項目中，我們交付的廣告支出回報鼓勵我們相信，我們可以在今年餘下的時間裡擴展策略並改進我們的數字業務。

Looking forward, we have identified 3 pilot locations we have planned for our new Foot Locker store of the future concept, that we plan to open next year. Together with swift progress on our store design work streams, we will launch our first prototype store in early Q1 next year. These stores are being designed to deliver an omni connected retail experience with stripers who will provide elevated service and product knowledge, providing learnings that we can apply to the rest of the fleet. We have also landed on our new global Foot Locker brand positioning, which will inform our holiday brand campaign and give way to celebrating our 50th brand anniversary next year.

展望未來，我們已經確定了 3 個試點地點，我們計劃在明年開設我們未來概念的新 Foot Locker 商店。隨著我們商店設計工作流的快速進展，我們將在明年第一季度初推出我們的第一家原型商店。這些商店的設計旨在提供全方位連接的零售體驗，這些店員將提供更高水平的服務和產品知識，提供我們可以應用於其他車隊的知識。我們還確定了新的全球 Foot Locker 品牌定位，這將為我們的假日品牌活動提供信息，並讓位於明年慶祝我們的品牌成立 50 週年。

Kids Foot Locker comps were down 7.7%, driven by similar headwinds as Foot Locker. KFL did, however, deliver a positive digital comp for the quarter, driven by online conversion gains and effective digital media planning. KFL also opened 2 additional house of play doors in Baltimore and in Miami. Collectively, our house of play doors comped up mid-single digits or nearly 12 points better than the balance of chain, giving us confidence that these expanded formats are connecting well with consumers. With door expansion of New Balance and Hey Dude during Q2, and launch of ON running at KFL for BTS, we remain convicted that KFL is a highly differentiated and competitive advantage for Foot Locker, Inc.

受與 Foot Locker 類似的逆風影響，Kids Foot Locker 的銷售額下降了 7.7%。然而，在在線轉化收益和有效的數字媒體規劃的推動下，KFL 確實在本季度提供了積極的數字收入。 KFL 還在巴爾的摩和邁阿密開設了 2 個額外的遊樂場。總的來說，我們的遊戲屋門比連鎖店的平衡高出中等個位數或近 12 個百分點，這讓我們相信這些擴展的格式與消費者建立了良好的聯繫。隨著 New Balance 和 Hey Dude 在第二季度的擴張，以及在 KFL 為 BTS 推出 ON running，我們仍然堅信 KFL 是 Foot Locker, Inc. 的高度差異化和競爭優勢。

At Champs Sports, we are making progress on repositioning the banner to serve the active athlete segment through an evolved merchandise assortment and brand evolution. Comps were down 25% as we preferred Foot Locker for key launches and constrained supply of Nike Inc. products during the reset. The higher penetration of apparel, which underperformed as a category was also a drag on the banner. But we did see good growth from the performance running category across multiple brands, including Brooks and ASICS. And we had a strong quarter with Under Armour from an apparel standpoint, as we continue to dimensionalize the assortment and drive more distinction from the Foot Locker banner, including new athleisure ideas from the CSG private label brand.

在 Champs Sports，我們在重新定位旗幟方面取得了進展，通過不斷發展的商品分類和品牌演變為活躍的運動員群體服務。 Comps 下降了 25%，因為我們更喜歡 Foot Locker 的關鍵發布和重置期間 Nike Inc. 產品的供應受限。作為一個類別表現不佳的服裝的較高滲透率也拖累了旗幟。但我們確實看到包括 Brooks 和 ASICS 在內的多個品牌的性能跑步類別的良好增長。從服裝的角度來看，我們在 Under Armour 的季度表現強勁，因為我們繼續擴大產品種類並從 Foot Locker 旗幟中推動更多差異化，包括來自 CSG 自有品牌的新運動休閒理念。

The Champs team has also done a great job connecting with new and retained consumers behind their 3 key consumer pillars of performance, completing the sports style look and sneaker essentials. And while this reset year will most acutely impact the Champs banner from a comp perspective, the seeds of the new positioning have been planted, and the team is working hard to connect and serve the active athlete. Our WSS banner focused on the Latino consumer outperformed other banners, but comps were still down 3.4% as the macro environment has put particular pressure on lower household income consumers. While traffic was down sharply, the business executed well by implementing tactical promotions, helping to drive improved conversion, as a partial offset.

Champs 團隊在其 3 大主要消費者表現支柱背後也出色地與新消費者和留存消費者建立了聯繫，完善了運動風格外觀和運動鞋必備品。雖然從比賽的角度來看，這個重置的一年將對冠軍旗幟產生最敏銳的影響，但新定位的種子已經播下，團隊正在努力聯繫和服務現役運動員。我們以拉丁裔消費者為重點的 WSS 橫幅廣告表現優於其他橫幅廣告，但由於宏觀環境對較低家庭收入的消費者施加了特別壓力，因此廣告收入仍下降了 3.4%。雖然流量急劇下降，但通過實施戰術促銷，業務執行良好，有助於推動改進的轉換，作為部分抵消。

During the quarter, we opened 6 new stores, bringing our total to 120, and we are on track to open approximately 25 for the year, for a growth of 20%. New stores this quarter included our first store in South Florida, which is off to a strong start, and we remain excited about the expansion opportunity for WSS beyond the West and Southwest. With a unique and special connection to the growing Latino community, we continue to see potential for more than 300 WSS stores in the United States with a trajectory to reach revenues of approximately $1.3 billion by 2026. And I'm also thrilled that we have such an experienced and committed leader in Blanca Gonzalez join us to lead the WSS banner.

本季度，我們新開了 6 家門店，總數達到 120 家，今年我們有望新開約 25 家，增長率為 20%。本季度的新店包括我們在南佛羅里達州的第一家店，開局良好，我們仍然對 WSS 在西部和西南部以外的擴張機會感到興奮。憑藉與不斷增長的拉丁裔社區的獨特而特殊的聯繫，我們繼續看到美國 300 多家 WSS 商店的潛力，到 2026 年收入有望達到約 13 億美元。我也很高興我們有這樣的布蘭卡·岡薩雷斯 (Blanca Gonzalez) 一位經驗豐富、忠誠的領導者加入我們，領導 WSS 旗幟。

Turning to Europe. Overall comps were relatively flat with Foot Locker Europe up low single digits, while Sidestep was down nearly 40%, as we exit the business and liquidate inventory. While overall performance in the region was below expectation, there was solid growth in Italy, Spain and France. Tourism continues to drive growth in the region with larger key cities continuing to outperform their respective countries. This momentum was offset by declines in the U.K. and Germany, where all of our midst to expectations was concentrated.

轉向歐洲。由於我們退出業務並清算庫存，Foot Locker Europe 的整體收入相對持平，而 Sidestep 則下降了近 40%。儘管該地區的整體表現低於預期，但意大利、西班牙和法國的增長穩健。旅遊業繼續推動該地區的增長，較大的主要城市繼續跑贏各自的國家。這種勢頭被英國和德國的下滑所抵消，我們所有的預期都集中在這兩個國家。

In Asia Pacific, comps increased 8.9%, more in line with our expectations, with Foot Locker banner comps up 11.2%, driven by successful brand diversification efforts and tourism returning to Asia. Within Asia, we remain on track to close our stores in Macau and Hong Kong and convert our operations in Singapore and Malaysia to a licensed business model by the middle of the year. And at atmos, comps were up 2.7%. The top line was aided by a strong tourism rebound in Japan, along with an exciting series of sneaker drops and strong consumer engagement. So while near-term trends are not meeting our expectations, we are firmly committed to our Lace Up strategy, and the long-term plans across our banners and regions. And the early wins and traction that I referenced in my comments, gives me the confidence that our teams are executing well in tough conditions, and laying the foundation for long-term and sustainable growth.

在亞太地區，受成功的品牌多元化努力和旅遊業重返亞洲的推動，亞太地區的收入增長了 8.9%，更符合我們的預期，其中 Foot Locker 橫幅收入增長了 11.2%。在亞洲，我們仍有望在今年年中前關閉澳門和香港的門店，並將新加坡和馬來西亞的業務轉變為特許經營模式。在 atmos，comps 上漲了 2.7%。日本旅遊業的強勁反彈，以及一系列令人興奮的運動鞋降價和強勁的消費者參與，都為收入帶來了幫助。因此，雖然近期趨勢沒有達到我們的預期，但我們堅定地致力於我們的 Lace Up 戰略，以及我們各個品牌和地區的長期計劃。我在評論中提到的早期勝利和牽引力讓我相信我們的團隊在艱難的條件下表現良好，並為長期和可持續增長奠定了基礎。

I'll now hand the call, over to Rob to go over the financials and guidance in more detail.

我現在將電話轉給 Rob，讓他更詳細地了解財務和指導。

Thank you, Frank, and good morning, everyone. Starting with revenues. Our total sales fell by 11.4% on a comp decline of 9.1% compared to our comp guidance of down high single digits. Somewhat below our original expectations, given disappointing results in April. By month, both February and March were down low double digits, given the drag from lower income tax refunds, which were down on average by about 10% in addition to the reset with Nike and the repositioning of Champs.

謝謝你，弗蘭克，大家早上好。從收入開始。與我們的高個位數下降指導相比，我們的總銷售額下降了 9.1%，下降了 11.4%。鑑於 4 月份令人失望的結果，略低於我們最初的預期。按月計算，2 月和 3 月均出現兩位數的低位下降，這是由於所得稅退稅減少的拖累，除了耐克的重置和 Champs 的重新定位外，退稅平均下降了約 10%。

April improved to down low single digits on a stronger launch calendar, but our non-launch business was meaningfully below our expectations that the consumer is both seeing pressure from inflation, as well as (inaudible) to shift spending dollars to services and away from products. Moving down the income statement. Gross margin for the quarter declined 400 basis points to 30%. Merchandise margins fell by 250 basis points, driven by higher promotions, against the still unusually low levels a year ago, and our increased promotional activity late in the quarter, as sales began to come in below expectations. Also, while our overall strength is relatively low, we have seen a significant pickup in test activity that was also a drag on merchandise margins.

4 月在更強勁的發布日曆上改善至低個位數，但我們的非發佈業務明顯低於我們的預期，即消費者既看到了通貨膨脹的壓力，也看到了（聽不清）將支出美元轉移到服務而不是產品.向下移動損益表。本季度毛利率下降 400 個基點至 30%。商品利潤率下降了 250 個基點，原因是促銷力度加大，而一年前仍處於異常低的水平，而且隨著銷售額開始低於預期，我們在本季度末增加了促銷活動。此外，雖然我們的整體實力相對較低，但我們發現測試活動顯著回升，這也拖累了商品利潤率。

Occupancy deleveraged by 150 basis points given the sharp comp decline. Offsetting pressure from promos, shrink and occupancy deleverage was approximately $10 million of gross margin savings from our cost optimization programs. For the first quarter, our SG&A rate came in at 22.4%, representing deleverage of 110 basis points with savings from the cost optimization program of approximately $25 million, more than offset by underlying deleverage on the sales decline, inflation and the investments in frontline wages and technology. With our cost optimization program, generating total savings of approximately $35 million in the first quarter, we remain on track to capture approximately 40% of the total $350 million targeted savings this year. Our GAAP EPS came in at $0.38 and our non-GAAP earnings of $0.70, somewhat below our original expectations given the softness we began to see in April.

鑑於薪酬急劇下降，入住率去槓桿化了 150 個基點。我們的成本優化計劃節省了大約 1000 萬美元的毛利率，抵消了促銷、收縮和入住去槓桿化帶來的壓力。第一季度，我們的 SG&A 率為 22.4%，意味著去槓桿化 110 個基點，成本優化計劃節省了約 2500 萬美元，這被銷售下降、通貨膨脹和一線工資投資的潛在去槓桿化所抵消和技術。憑藉我們的成本優化計劃，第一季度總計節省了約 3500 萬美元，我們仍有望在今年實現總計 3.5 億美元的節省目標中的約 40%。我們的 GAAP 每股收益為 0.38 美元，非 GAAP 收益為 0.70 美元，鑑於我們在 4 月份開始看到的疲軟，略低於我們最初的預期。

Now turning to our balance sheet. We ended the quarter with $313 million of cash and $451 million of debt. At quarter end, our inventories were 25% above last year, but down slightly from the 30% year-over-year increase at the start of the quarter. We paid $38 million in dividends and did not repurchase any stock during the quarter. Moving on to our outlook for the rest of the year. Given the soft trends that began in April and have continued into May, we are lowering our full year expectations across sales and gross margin. For the year, including the extra week, we are lowering our guidance for non-GAAP EPS to the range of $2 to $2.25, down from our prior range of $3.35 to $3.65, with the following drivers: we now expect comps to decline by 7.5% to 9% compared to the prior range of down 3.5% to down 5.5%. We plan to open approximately 90 new doors for the year, including 25 WSS stores, while closing a total of approximately 330 stores. Overall, our store count will be down approximately 9% in 2023, with square footage down approximately 4% as we convert more stores to larger formats. With the extra week adding approximately 1% for sales, total sales for the 53-week year are expected to fall by 6.5% to 8%.

現在轉向我們的資產負債表。本季度結束時，我們擁有 3.13 億美元的現金和 4.51 億美元的債務。季度末，我們的庫存比去年同期高出 25%，但略低於本季度初 30% 的同比增幅。我們支付了 3800 萬美元的股息，並且在本季度沒有回購任何股票。繼續我們對今年剩餘時間的展望。鑑於從 4 月開始並一直持續到 5 月的疲軟趨勢，我們正在降低對銷售額和毛利率的全年預期。對於這一年，包括額外的一周，我們將非 GAAP 每股收益的指導從之前的 3.35 美元到 3.65 美元的範圍下調至 2 美元到 2.25 美元的範圍，原因如下：我們現在預計 comps 將下降 7.5 % 至 9% 相比之前的範圍下降 3.5% 至下降 5.5%。我們計劃今年新開約 90 家門店，包括 25 家 WSS 門店，同時關閉總共約 330 家門店。總體而言，隨著我們將更多商店轉換為更大的格式，我們的商店數量將在 2023 年減少約 9%，面積減少約 4%。由於額外的一周增加了約 1% 的銷售額，預計 53 週的年度總銷售額將下降 6.5% 至 8%。

With sales softer than anticipated, we are taking more aggressive action on promotions to drive demand and manage our inventory. As a result, we now expect our gross margin to decline by 310 basis points to 330 basis points to 28.6% to 28.8%, down from our previous guidance were 90 to 110 basis point decline, given steeper markdown activity, incremental occupancy deleverage on the bigger comping fund as well as an increase in (inaudible) related strength. We've also taken a more aggressive approach to expenses. And while sales are expected to be lower, our SG&A rate is expected to be modestly better than our original forecast. We now expect to deleverage SG&A by 60 to 80 basis points to 22.4% to 22.6%. As a result, we expect our 2023 non-GAAP earnings per share to be in the range of $2 to $2.25, including the impact of the extra week. While we will not be giving quarterly guidance on an ongoing basis, we did want to provide some color on our expectations for the second quarter and the back half.

由於銷售低於預期，我們正在採取更積極的促銷措施來推動需求和管理我們的庫存。因此，我們現在預計我們的毛利率將下降 310 個基點至 330 個基點至 28.6% 至 28.8%，低於我們之前的指引 90 至 110 個基點的下降，因為降價活動更加劇烈，入住率增加更大的補償基金以及（聽不清）相關實力的增加。我們還採取了更積極的支出方式。雖然銷售額預計會下降，但我們的 SG&A 率預計會略好於我們最初的預測。我們現在預計將 SG&A 去槓桿化 60 至 80 個基點至 22.4% 至 22.6%。因此，我們預計 2023 年的非 GAAP 每股收益將在 2 美元至 2.25 美元之間，包括額外一周的影響。雖然我們不會持續提供季度指導，但我們確實希望為我們對第二季度和下半年的預期提供一些色彩。

For the second quarter, we now expect comps to be down high single digits, below our previous expectations of down mid-single digits. On gross margins, given we are leaning into promotions, we expect merchandise margins to be down, more than what we experienced in 1Q despite starting to lap more normalized promotional levels in 2Q. On SG&A, given the wage investments we made in 1Q were in March, they will have a larger impact on expense dollars for 2Q, such that we expect to deleverage SG&A by more than what we experienced in 1Q.

對於第二季度，我們現在預計 comps 將下降高個位數，低於我們之前對中個位數下降的預期。在毛利率方面，鑑於我們傾向於促銷，我們預計商品利潤率將下降，超過我們在第一季度的經歷，儘管第二季度開始採用更正常的促銷水平。在 SG&A 方面，鑑於我們在 1Q 進行的工資投資是在 3 月份，它們將對 2Q 的費用美元產生更大的影響，因此我們預計 SG&A 的去槓桿化程度超過我們在 1Q 的經歷。

Also, because of the low level of earnings, our non-GAAP tax rate will be unusually high given our losses in Asia are nontax deductible. We, therefore, expect a non-GAAP tax rate of over 50% for the quarter. As such, we expect to be marginally profitable in 2Q with non-GAAP EPS below $0.05. Looking to the back half, we expect comp declines of down mid- to high single digits, reflecting ongoing softness in the consumer. While below our previous forecast were down low single digits, we still expect some sequential improvement on the first half, driven by promotions having a bigger impact on demand during back-to-school and winter holidays compared to 2Q, which has a directly key selling moments. Strong flow of product newness, including supply of models like Samba and Gazelle, which are gaining momentum. The increased door counts for ON and HOKA, that Frank emphasizes, Nike rebounding later in the year, as well as strategic initiatives, particularly in digital gaining traction. Heightened promotional activity is expected to continue into the back half, but March margin comparison ease resulting in moderating gross margin pressure compared to the first half.

此外，由於收入水平低，我們的非 GAAP 稅率將異常高，因為我們在亞洲的虧損是不可抵稅的。因此，我們預計本季度的非 GAAP 稅率將超過 50%。因此，我們預計第二季度非 GAAP 每股收益將略微盈利，低於 0.05 美元。展望後半部分，我們預計 comp 下降中高個位數，反映出消費者的持續疲軟。雖然低於我們先前預測的低個位數下降，但我們仍預計上半年會有一些環比改善，這是由於與第二季度相比，返校和寒假期間促銷對需求的影響更大，而第二季度直接是關鍵銷售時刻。新產品的強勁流動，包括 Samba 和 Gazelle 等模型的供應，這些模型正在獲得發展勢頭。弗蘭克強調，ON 和 HOKA 的門數增加，耐克在今年晚些時候反彈，以及戰略舉措，特別是在數字領域獲得牽引力。促銷活動的加強預計將持續到下半年，但 3 月份的利潤率比較有所緩解，導致與上半年相比毛利率壓力有所緩和。

In closing, despite the near-term weakness, we remain excited about our early progress on the strategic imperatives within our Lace Up plan and remain committed to its execution, to put us on a path towards sustainable long-term growth. With that, operator, please open the call for questions.

最後，儘管近期表現疲軟，但我們仍然對我們在 Lace Up 計劃中的戰略要務取得的早期進展感到興奮，並繼續致力於執行該計劃，以使我們走上可持續的長期增長之路。有了這個，接線員，請打開問題電話。

(Operator Instructions) Our first question comes from Janine Stichter from BTIG.

（操作員說明）我們的第一個問題來自 BTIG 的 Janine Stichter。

I guess to start out, I wanted to ask a bit about, how you think about the long-term target that you laid out in March. Any change there? And maybe in terms of the pacing to get to those targets, how we should think about fiscal '24 into fiscal '25, and the outlook that you've given previously?

我想一開始，我想問一下，您如何看待您在 3 月份制定的長期目標。那裡有什麼變化嗎？也許就實現這些目標的步伐而言，我們應該如何考慮 24 財年到 25 財年，以及您之前給出的前景？

Well, thank you for your question. Let me start by reiterating that I have complete confidence in the Lace Up plan. And, as we just discussed, we're already seeing strong progress on the strategic imperative. So we knew this was going to be a reset year with the Nike reallocation, Champs rationalization. But certainly more challenging than we thought at the time. I think, we're taking the right action but also continuing to focus on the future. And to your point, as I think about the longer-term targets, the imperatives are intact. The strategic imperatives that we outlined, we know are the right ones to drive our business to be even more competitive. And to drive that long-term sustainable growth, and the operational targets that we set are still also intact. Examples like reaching 25% digital and 50% loyalty penetration, those are unchanged by the current macro environment. So, we're going to continue towards those objectives and make the investments that we need to reach them. So Rob, can you add a little bit more about the financial targets themselves?

嗯，謝謝你的問題。首先讓我重申，我對 Lace Up 計劃充滿信心。而且，正如我們剛剛討論的那樣，我們已經看到戰略要務取得了巨大進展。所以我們知道這將是耐克重新分配、冠軍合理化的重置年。但肯定比我們當時想像的更具挑戰性。我認為，我們正在採取正確的行動，但也會繼續關注未來。就你的觀點而言，當我考慮長期目標時，當務之急是完整的。我們知道，我們概述的戰略要務是推動我們的業務更具競爭力的正確戰略。為了推動長期可持續增長，我們設定的運營目標仍然完好無損。例如達到 25% 的數字化和 50% 的忠誠度滲透率，這些在當前的宏觀環境下並沒有改變。因此，我們將繼續朝著這些目標邁進，並進行實現這些目標所需的投資。那麼羅布，你能再補充一點關於財務目標本身嗎？

Sure. So when it comes to the longer-term aspirations of that over $10 billion of revenues at over 10% EBIT margins, those are certainly the targets that we will be marching towards the over time and what we -- what ourselves accountable to over time. In terms of the more midterm targets, in terms of EBIT margins, 8.5% to 9%, revenues at $9.5 billion, that we initially set for 2026, it will take a little bit longer to get to those numbers. In terms of the algo, the trajectory to get to them that mid- to high 20s EPS growth is still the growth rate that we think that we can achieve sometime past this year. I would note that given some of the earnings pressure, much of the earnings pressure actually this year, is through promotions that are above usual levels. We would expect to, at some point, recapture some of that or most of that in a more normal environment, such that you could see a period of time where we actually grow above that mid- to high 20s EPS growth rate. So the targets themselves are very much intact. We're still very committed to them, as Mary mentioned. Importantly, we're going to continue to make the investments that will get us there. But it will take us a little bit longer than we originally anticipated.

當然。因此，當談到超過 100 億美元的收入和超過 10% 的息稅前利潤率的長期目標時，這些肯定是我們將隨著時間的推移而邁進的目標，也是我們——隨著時間的推移我們要對之負責的目標。就更多的中期目標而言，我們最初為 2026 年設定的息稅前利潤率為 8.5% 至 9%，收入為 95 億美元，要達到這些數字還需要更長的時間。就算法而言，讓他們達到 20 年代中高 EPS 增長的軌跡仍然是我們認為我們可以在今年某個時候實現的增長率。我要指出的是，考慮到一些盈利壓力，實際上今年的大部分盈利壓力來自高於平常水平的促銷活動。我們希望在某個時候在更正常的環境中重新奪回其中的一部分或大部分，這樣你就可以看到我們實際增長超過 20 年代中高 EPS 增長率的一段時間。所以目標本身非常完整。正如瑪麗所提到的，我們仍然非常重視他們。重要的是，我們將繼續進行投資以實現目標。但這將比我們原先預期的花費更長的時間。

Great. And on the promotions, inventory is a bit higher than we had expected. How are you buying for the back half of the year into next year? And should we still expect inventory to be down slightly for the year-end?

偉大的。在促銷方面，庫存比我們預期的要高一些。下半年到明年的採購情況如何？我們是否仍應預期年底庫存會略有下降？

Yes. Great question. So certainly, our merchant teams are working very hard on the promotional cadence that we outlined, and that's implied in our guidance for '23, also partnering very closely with our strategic vendor partners on assistance to make sure that we can reflow and also share some of the impact of that promotion. And then, we have made some adjustments to the order book, including back-to-school in Q4 that will allow for a reflow of some of the key items and some of the seasonless merchandise that we have. So we feel very good about our ability to flex our plans and partner with all of our key vendor partners. .

是的。很好的問題。因此，當然，我們的商家團隊正在按照我們概述的促銷節奏非常努力地工作，這在我們的 23 年指南中有所暗示，我們還與我們的戰略供應商合作夥伴密切合作以提供幫助，以確保我們可以回流並分享一些該促銷活動的影響。然後，我們對訂單簿進行了一些調整，包括在第 4 季度返校，這將允許回流一些關鍵商品和一些我們擁有的季節性商品。因此，我們對我們調整計劃並與所有主要供應商合作夥伴合作的能力感到非常滿意。 .

Our next question comes from Adrienne Yih from Barclays.

我們的下一個問題來自巴克萊銀行的 Adrienne Yih。

This is Paul Kearney on for Adrienne. My first one, on the Champs business, can you tell us, what are the metrics for success that you're looking for that the repositioning is working? With comps below the overall company, how much of this was directly driven from the repositioning, so taking some Nike product out versus overall weakness of apparel, then maybe also how did the merchandise margin at Champs trend versus Foot Locker?

這是 Paul Kearney 為 Adrienne 代言。我的第一個，關於 Champs 業務，你能告訴我們，你正在尋找重新定位有效的成功指標是什麼嗎？由於公司業績低於整體公司，其中有多少是重新定位直接驅動的，因此將一些耐克產品與服裝的整體疲軟相比，那麼 Champs 趨勢與 Foot Locker 的商品利潤率如何？

Yes. So firstly, we firmly believe that the long term, there's an opportunity to position Champs to get the active athlete, and we outlined that in our Investor Day and it's part of our sneaker growth map. And there's also really key adjacencies to the quality seeker and the fashion forward expressionist to give us a really solid consumer base. In Q1, as noted in our remarks, we did prefer Foot Locker for scarce inventory of launches over Champs, and that impact was orders of magnitude and substantial immaterial to the Champs business, and that will continue throughout the year. The other drag that you mentioned was the apparel business, which has a disproportionate impact to comps, given the penetration of apparel Champs, which is about 10 points higher than our other core banners. So that too was a significant impact. The other thing was the impact of launch in itself, there's always been a high attachment rate of apparel to launch sneakers. And so that, too, was a further drag and we continue to see that. Having said that, the repositioning and transition is making very good progress. We've outlined 3 key pillars of that. Our commitment to the performance category, our head-to-toe story telling against that sport style look, and then sneakers essentials. And throughout Q1, we saw very good early signs of that. We talked about the growth of performance running -- performance basketball from a footwear standpoint. We've moved quickly and swiftly with brands like Under Armour and New Balance to improve our position in inventory and in-store experience.

是的。因此，首先，我們堅信，從長遠來看，有機會讓 Champs 獲得活躍的運動員，我們在投資者日概述了這一點，這是我們運動鞋增長圖的一部分。質量追求者和時尚前衛表現主義者之間也存在著非常重要的關聯，為我們提供了一個真正穩固的消費者基礎。在第一季度，正如我們在評論中指出的那樣，我們確實更喜歡 Foot Locker，因為它的發布庫存比 Champs 少，而且這種影響是數量級的，對 Champs 業務來說並不重要，而且這種影響將持續一整年。你提到的另一個拖累是服裝業務，考慮到服裝 Champs 的滲透率比我們其他核心橫幅高約 10 個百分點，它對 comps 的影響不成比例。因此，這也產生了重大影響。另一件事是發射本身的影響，總是有很高的服裝附件率來發射運動鞋。因此，這也進一步拖累了我們繼續看到這一點。話雖如此，重新定位和轉型正在取得非常好的進展。我們概述了其中的 3 個關鍵支柱。我們對性能類別的承諾，我們從頭到腳的故事講述了運動風格的外觀，然後是運動鞋必需品。在整個第一季度，我們看到了非常好的早期跡象。我們談到了性能跑步的增長——從鞋類的角度來看性能籃球。我們與安德瑪 (Under Armour) 和新百倫 (New Balance) 等品牌迅速採取行動，以改善我們在庫存和店內體驗方面的地位。

We also cite CSG, as a big opportunity to move quickly into athleisure and take inspiration and some of the trends that we're seeing in technical performance, and also outdoor-inspired looks. And then, Sneakers Essentials is a third pillar, and we're seeing excellent storytelling and improvement both in store and online. And most importantly, our vendors are very committed to our long-term plans for Champs. It's an integral part of our Foot Locker ecosystem, but also an important connection to the consumer marketplace and our vendors have unilaterally supported us in this transition.

我們還引用了 CSG，這是一個快速進入運動休閒並汲取靈感和我們在技術性能以及戶外風格外觀方面看到的一些趨勢的大好機會。然後，Sneakers Essentials 是第三個支柱，我們在商店和網上看到了出色的故事講述和改進。最重要的是，我們的供應商非常致力於我們的 Champs 長期計劃。它是我們 Foot Locker 生態系統不可或缺的一部分，也是與消費者市場的重要聯繫，我們的供應商在這一轉變中單方面支持我們。

Our next question comes from Paul Lejuez from Citi.

我們的下一個問題來自花旗銀行的 Paul Lejuez。

This is Kelly on for Paul. Could you talk about where your Nike penetration shook out in the quarter? It seems like that reduced allocation was particularly impactful this quarter in that chance. So any way to quantify that impact, relative to your original expectations? And then, as we think about the year, I guess, when does that penetration ultimately shake out? Do you still expect Nike to return to growth in your new financial guidance? And then, just secondly, can you just help us quantify, how much excess inventory you feel you have to get through? What's sort of the makeup of that inventory? Is it apparel and footwear, more apparel weighted? Any kind of comment on it by a category basis would be helpful.

這是凱利替保羅。您能否談談本季度您的耐克滲透率在哪裡？在這個機會中，減少分配似乎在本季度產生了特別大的影響。那麼，相對於您最初的預期，有什麼方法可以量化這種影響？然後，當我們考慮這一年時，我猜，這種滲透最終會在什麼時候消失？您是否仍期望耐克在您的新財務指南中恢復增長？然後，其次，您能否幫助我們量化您認為必須處理多少過剩庫存？該庫存的構成是什麼樣的？它是服裝和鞋類，更多的服裝權重？按類別對其進行任何類型的評論都會有所幫助。

Sure. Kelly, thanks for the question. This is Rob. So on the vendor mix, as we noted in our prepared remarks, the mix outside of Nike was 35% this quarter. That was up a couple of points. So, we do feel like we are making progress in diversifying the brand portfolio, and we noted a number of brands that have outperformed the overall portfolio. As you look towards the rest of the year, we haven't given targets for the Nike vendor mix penetration by year. We still very much expect to over time by 2026, reach over 40% in our mix with other vendors and that kind of still the bogey that's very much intact, an important piece of the overall strategy. In terms of the composition of the inventory the inventory growth that we ended the quarter with was largely footwear. So, footwear was much higher than that average or higher than the average and apparel was actually kind of flattish. So, as you move forward, that's the way to think about the inventory composition. And again, we expect to end the year, kind of in that flattish kind of territory for inventories overall.

當然。凱利，謝謝你的提問。這是羅布。因此，在供應商組合方面，正如我們在準備好的評論中指出的那樣，本季度耐克以外的供應商組合為 35%。那是幾個點。因此，我們確實覺得我們在品牌組合多元化方面取得了進展，並且我們注意到許多品牌的表現優於整體組合。當你展望今年剩餘時間時，我們沒有給出耐克供應商組合滲透率的目標。我們仍然非常希望隨著時間的推移，到 2026 年，在我們與其他供應商的組合中達到 40% 以上，而這仍然是非常完整的柏忌，這是整體戰略的重要組成部分。就庫存構成而言，我們在本季度結束時的庫存增長主要是鞋類。因此，鞋類遠高於平均水平或高於平均水平，而服裝實際上有點平淡。因此，隨著您的前進，這就是考慮庫存構成的方式。再一次，我們預計到今年年底，整體庫存將處於那種持平的狀態。

The next question comes from Corey Tarlowe from Jefferies.

下一個問題來自 Jefferies 的 Corey Tarlowe。

Could you first talk a little bit about, how the consumer behavior has changed in recent months? Clearly, the consumer is pulling back, but just curious about how that's manifesting specifically in your stores, maybe from a traffic and ticket perspective? And then, also what you've embedded in your outlook as you look ahead?

您能否先談談最近幾個月消費者行為發生了怎樣的變化？顯然，消費者正在退縮，但只是想知道這在您的商店中具體是如何體現的，也許是從客流量和門票的角度來看？然後，當你展望未來時，你在你的前景中嵌入了什麼？

Sure, absolutely. Let me just talk about, broadly speaking. So, consumer demand has softened since Investor Day and signals are that we think that pressure will continue. We look at our middle and lower-income customers in particular, and saw that even kind of through last year some softness. But, people really rallied for back-to-school and for holiday. And so as we came into this year, though we knew there was some pressure because of the lower tax refund, we had hoped that things would snap back post that. And, what we saw is that it really hasn't to the extent that we were forecasting or hoping for. So -- and the -- when you think about just from a household spending perspective, inflation while abating is still high, higher than before. So the basics in people's household, whether it's gas, food or rents are elevated in terms of cost. So that puts pressure on ability to spend discretionary dollars, which affects our categories. People are just having to be more choiceful, as they think about discretionary spend. And, we also see an increase in usage of credit. So we're not immune to this, but we're probably a little bit more exposed to it given the income level that we skew a little bit lower income. .

當然，絕對。我簡單說一下，籠統地說。因此，自投資者日以來消費者需求已經減弱，並且有跡象表明我們認為壓力將繼續存在。我們特別關注我們的中低收入客戶，甚至在去年看到了一些疲軟。但是，人們真的為返校和假期聚集在一起。因此，當我們進入今年時，儘管我們知道由於較低的退稅而存在一些壓力，但我們曾希望事情會在那之後迅速恢復。而且，我們看到的是，它確實沒有達到我們預測或希望的程度。所以——而且——當你僅僅從家庭支出的角度考慮時，通貨膨脹率在下降的同時仍然很高，比以前更高。因此，就成本而言，人們家庭的基本用品，無論是天然氣、食品還是租金，都在上漲。因此，這對支出可支配資金的能力施加了壓力，從而影響了我們的類別。在考慮可自由支配的支出時，人們不得不更加有選擇性。而且，我們還看到信貸使用有所增加。所以我們不能倖免於此，但考慮到我們偏低收入的收入水平，我們可能更容易受到影響。 .

Having said that, I do feel really good about the fact that we see our customers showing up at key moments, key launches, key holidays. And we're focusing ourselves to take everything in our control and do the best job we can to show up for our customers. And we've seen both traffic and conversion down. And I think right now, we just expect that pressure to maintain in between maybe points that are kind of like key selling moments.

話雖如此，我確實對我們看到我們的客戶出現在關鍵時刻、關鍵發布和關鍵假期這一事實感到非常高興。我們正專注於控制一切，盡我們所能為我們的客戶展示最好的作品。我們已經看到流量和轉化率都下降了。而且我認為現在，我們只是希望壓力保持在可能點之間，這有點像關鍵的銷售時刻。

Got it. And then just on Nike, I think Rob, you might have said in your comments that you expect Nike to rebound later in the year. I wanted to just make sure I heard that correctly. And maybe, if you could talk a little bit about what's driving that, that would be great.

知道了。然後就耐克而言，我想羅伯，你可能在評論中說過，你希望耐克在今年晚些時候反彈。我只想確保我沒聽錯。也許，如果你能談談是什麼推動了這一點，那就太好了。

Sure. I'll start and maybe others can jump in. But the idea of Nike stabilizing and kind of starting to return to growth towards the back half of -- back part of the year, end of the year is still very much the dynamic that we expect. Given the backdrop, we'll see how the overall business shakes out and in terms of the magnitude of that inflection, that's still to be determined. But that dynamic of it flattening out, stabilizing kind of returning to growth, as we absorb the allocation change and including the lower allocations of launch product is still what we expect to happen.

當然。我會開始，也許其他人可以加入。但是耐克的想法穩定下來，並開始在下半年恢復增長——今年下半年，年底仍然是我們的動力預計。在這種背景下，我們將看到整體業務如何擺脫困境，而就這種拐點的幅度而言，這仍有待確定。但是，隨著我們吸收分配變化並包括較低分配的發布產品，它趨於平緩，穩定某種恢復增長的動態仍然是我們期望發生的事情。

I would just add that just at a higher level, the way that we view the relationship is really moving forward, very constructive, working together, our teams working closely together, whether it's through better sharing of data and marketplace information, whether it's really about focusing on the strategic common areas that we share a strike. So basketball, I know Frank talked about several of those in his prepared comments. Kids sneaker culture. So as Rob said, we're working actively towards a plan to go through this reset, and then build to growth, and that's our plan.

我只想補充一點，在更高的層面上，我們看待這種關係的方式確實在向前發展，非常有建設性，一起工作，我們的團隊緊密合作，無論是通過更好地共享數據和市場信息，還是真的關於專注於我們共同罷工的戰略共同領域。所以籃球，我知道弗蘭克在他準備好的評論中談到了其中的幾個。兒童運動鞋文化。正如 Rob 所說，我們正在積極制定一項計劃來完成這次重置，然後實現增長，這就是我們的計劃。

And our next question comes from Paul Nikic from Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 Paul Nikic。

Austin Breno on for Tom. I just had a quick question. You noticed that there's a slowdown in consumer spending, and your elevated inventory levels, particularly with the point you just made at them being a little bit higher in footwear. Could that possibly cause you to slow down, how quickly you guys add some of the newer brands like HOKA and ON and possibly can do to your stores throughout the rest of the year?

Austin Breno 換下 Tom。我只是有一個簡單的問題。您注意到消費者支出放緩，庫存水平升高，特別是您剛才提到的鞋類庫存水平略高。這可能會導致你放慢腳步，你們以多快的速度添加一些新品牌，如 HOKA 和 ON，並且可能會在今年餘下的時間裡對你的商店做些什麼？

This is Frank. No, actually, somewhat that inventory growth is in some ways generated and being driven by some of those brands that we have growth aspirations and the consumer is reacting positive too. So some of that inventory growth is in brands like New Balance, like HOKA, like ON, like Brooks like ASICS, where we're seeing comp growth. So we're actually fueling that growth inventory and new receipts throughout the rest of the year. At the same time, some of the slower-moving categories and franchises, we are being more aggressive with our promotional and markdown cadence. And we're also looking at future order book adjustments, and the reflow of receipts and inventory to be more in line with the sales trends. So, I think we're appropriately planned and certainly weekly discussions and reactions that we have to the marketplace make me feel very confident that we've got the inventory bottom line.

這是弗蘭克。不，實際上，在某種程度上，庫存增長在某種程度上是由我們有增長願望的一些品牌產生和推動的，消費者的反應也很積極。因此，部分庫存增長來自 New Balance、HOKA、ON、Brooks 和 ASICS 等品牌，我們在這些品牌中看到了補償增長。因此，我們實際上在今年剩餘時間里為增長庫存和新收入提供動力。與此同時，對於一些發展較慢的品類和特許經營，我們的促銷和降價節奏更加積極。我們也在考慮未來的訂單調整，以及收據和庫存的回流，以更符合銷售趨勢。因此，我認為我們的計劃是適當的，當然每週的討論和我們對市場的反應讓我對我們已經達到庫存底線感到非常有信心。

Our next question comes from Joe Feldman from Telsey Advisory Group. .

我們的下一個問題來自 Telsey Advisory Group 的 Joe Feldman。 .

I'm on for Cristina Fernandez. Wanted to ask a follow-up on shrink. And what exactly are you guys seeing there? I know it's up across retail, but I was curious, as to why you're seeing on your end and where the incremental shrink is coming from to take that number up from where you had thought, it would be at the start of the year.

我支持克里斯蒂娜·費爾南德斯。想問一下收縮的後續問題。你們到底在那裡看到了什麼？我知道整個零售業都在上升，但我很好奇，為什麼你會看到你的末端以及增量收縮的來源是從你想像的地方開始這個數字，這將是在今年年初.

Yes. I mean, I would just say that, again, this has been a multiyear dynamic in the industry. We are not immune to it. It's increasing. You've heard target talk about it and others. And so, it's having an increased impact on Foot Locker. We've seen a significant increase in that from stores. And usually through this lens of an organized retail crime type of action affecting more apparel, certainly, than footwear, where we only have one item out, but apparel is affected. So we're doing like others in retail, our best job to balance two things. One is to aid local law enforcement and tracking with trackers to track the feeds and also kind of pushing for more enforcement of repeat offenders. There's also a cross retail work at the other end of the equation, which is the informed act which is trying to really make sure that the online marketplaces are getting more vigilant about making sure the products that they sell are not through organized retail crime. So our other focus is really just making sure that we're keeping people safe. We certainly do not want our employees to get in the -- get hurt or get in the middle of this, as our customers certainly as well. So like others in retail, we see it as having an increased impact and we're managing to the best extent we can.

是的。我的意思是，我只想說，這在行業中已經持續了多年。我們不能倖免。它在增加。您已經聽過 target 談論它和其他人。因此，它對 Foot Locker 的影響越來越大。我們已經看到商店的數量有了顯著增加。通常通過這種有組織的零售犯罪類型的行動，影響的服裝肯定比鞋類更多，我們只有一件商品，但服裝受到影響。所以我們和零售業的其他人一樣，我們最好的工作是平衡兩件事。一個是幫助當地執法部門和跟踪器跟踪提要，並推動對屢犯者採取更多執法措施。在等式的另一端還有一項交叉零售工作，這是知情行為，它試圖真正確保在線市場越來越警惕，確保他們銷售的產品不是通過有組織的零售犯罪活動獲得的。所以我們的另一個重點實際上只是確保我們保證人們的安全。我們當然不希望我們的員工受到傷害或捲入其中，我們的客戶當然也是如此。因此，與零售業的其他人一樣，我們認為它的影響越來越大，我們正在盡最大努力進行管理。

Got it. That's helpful. And then, the follow-up would be on SG&A, the guidance you guys are giving a little bit better than it was before. I was curious, where maybe you're finding the incremental costs, and it seems like given your comments about the second quarter, it should be a pretty significant step-up in the second half. Is that how we or reductions, I should say, in the second half?

知道了。這很有幫助。然後，後續將是關於 SG&A，你們提供的指導比以前好一點。我很好奇，您可能在哪裡找到增量成本，而且考慮到您對第二季度的評論，下半年應該是一個非常重要的提升。我應該說，在下半場我們是這樣還是減少了？

Sure. So as we've seen the slower sales materialize, we've taken a very close look at discretionary spending. So thank everyone, everywhere from travel to special events to certain kind of purchasing that's not what we call mission-critical. So it has taken a very fine tooth comb, if you will, to what the cost structure looks like and anything that doesn't directly contribute to the Lace Up strategy. We're questioning, if those dollars need to be spent today. I mentioned a couple of them. Our performance pay relative to the lower earnings will certainly come in, and that's a big part of it as well. So that has an impact on 2Q. But keep in mind, 2Q, again, absorbs the first full quarter of the wage increase, and some of the big first step ups in terms of IT expenses. 2Q is our seasonally lowest quarter. So those dynamics in terms of margin have the biggest impact on that quarter, as opposed to the back half. But the expense actions that we've taken are relative to 2Q, but to your point, have a bigger impact on the back half. .

當然。因此，當我們看到銷售放緩成為現實時，我們已經非常仔細地研究了可自由支配的支出。因此，感謝每一個人，從旅行到特殊活動，再到某些我們稱之為非關鍵任務的採購。因此，如果你願意的話，它已經非常精細地梳理了成本結構的樣子以及任何不直接有助於 Lace Up 戰略的東西。我們在質疑，今天是否需要花掉這些美元。我提到了其中的幾個。我們相對於較低收入的績效工資肯定會出現，這也是其中的很大一部分。所以這對第二季度有影響。但請記住，第二季度再次吸收了第一個完整季度的工資增長，以及 IT 支出方面的一些大的第一步。第二季度是我們季節性最低的季度。因此，利潤率方面的動態對該季度的影響最大，而不是後半部分。但我們採取的費用行動是相對於第二季度而言的，但就你的觀點而言，對後半部分的影響更大。 .

The next question comes from Bob Drbul from Guggenheim.

下一個問題來自古根海姆的 Bob Drbul。

This is Arian Razai on for Bob Drbul. I have a question about the off-mall, given the success you drove at [Alter] with off-mall locations, to see what rise your confidence that in Foot Locker's (inaudible) strategy? And how would you balance that?

我是 Bob Drbul 的 Arian Razai。考慮到您在 [Alter] 的非購物中心位置取得的成功，我有一個關於非購物中心的問題，看看是什麼提高了您對 Foot Locker（聽不清）戰略的信心？你會如何平衡呢？

Yes. One of the key imperatives -- strategic imperatives of our Lace Up plan, we call powering up the portfolio. And it is about making sure that we optimize our real estate footprint to match where our customers most need and want from us, and macro trends around that, right? So, it's about just making sure our banners are distinct from each other and then optimizing the real estate. So, what we have in the plan and we're very committed to is that we will increase the off-mall percentage to 50% by the end of 2026. And our new store format to be about 20% of our mix by the end of 2026. The new store format, which is largely off-mall as well, our larger stores, we call them community stores or Power Stores. And their larger square footage meant to really represent the communities we operate in, and allow us to have a more full service ability to meet all things sneakers. So more brand presentation and more categories for men, women and children. So we're going to continue to increase as part of -- those as part of our mix. Now malls are still important in our portfolio as well. In fact, we have AMB malls that continue to perform really well and have historically. Often, those are malls in places where that's the best place to shop. So we're going to make sure to maximize those. The comps in our off-mall formats and our new formats are already trending higher than the fleet at large. So clearly, we feel like that's a good indication that we're moving in the right direction. .

是的。我們的 Lace Up 計劃的關鍵要務之一——戰略要務，我們稱之為增強產品組合。這是關於確保我們優化我們的房地產足跡以匹配我們的客戶最需要和最想要我們的地方，以及圍繞它的宏觀趨勢，對吧？所以，這只是確保我們的橫幅彼此不同，然後優化房地產。因此，我們的計劃是，我們非常致力於在 2026 年底之前將商場外的百分比提高到 50%。到年底，我們的新商店形式將占我們組合的 20% 左右2026 年。新的商店形式，也主要是在商場外，我們較大的商店，我們稱之為社區商店或 Power Stores。他們更大的面積意味著真正代表我們經營所在的社區，並讓我們擁有更全面的服務能力來滿足運動鞋的所有需求。所以更多的品牌展示和更多的男士、女士和兒童類別。因此，我們將繼續增加——作為我們組合的一部分。現在購物中心在我們的投資組合中仍然很重要。事實上，我們的 AMB 購物中心在歷史上一直表現良好。通常，這些購物中心位於最適合購物的地方。所以我們要確保最大化這些。我們的場外模式和新模式的競爭趨勢已經高於整個車隊。很明顯，我們覺得這是一個很好的跡象，表明我們正朝著正確的方向前進。 .

The next question comes from Matthew Boss from JPMorgan.

下一個問題來自摩根大通的 Matthew Boss。

It's Amanda Douglas on for Matt. So Mary, looking out beyond this year, I think you had previously laid out a 3% to 4% comp target for 2024 through '26. Is it 3% to 4% comps starting in 2024? Or do you see it, as an average over the 3-year period? And what just gives you confidence in the sequential improvement from here?

阿曼達·道格拉斯替馬特上場。所以瑪麗，展望今年以後，我認為你之前已經制定了 2024 年到 26 年 3% 到 4% 的補償目標。從 2024 年開始是 3% 到 4% 的補償嗎？還是您將其視為 3 年期間的平均值？是什麼讓您對從這裡開始的連續改進充滿信心？

Well, let me just start at a high level the second part of your question, which is that I'm repeating this, but I feel very confident in the plan -- the strategic plan that we put together, which we're calling the Lace Up plan. But it's a very well thought through set of strategies and imperatives, with a team that's very committed to bringing that to life, and I'm seeing it happen rapidly. So, the idea here is to position ourselves to be able to grow at the rate of the category, which were not today. We knew this was going to be a reset year. It's a bigger reset than we had anticipated with the macro consumer issues and the actions we need to take on our inventory. So we still hold the target -- those growth targets as the right ones. It may take a little longer. I can't say exactly, when the consumer pressure will lift up. But, I can say with confidence that the strategies that we put in place will allow us to be very competitive in the growth category and really hold our market share over time.

好吧，讓我從高層次開始你問題的第二部分，我正在重複這個，但我對這個計劃非常有信心——我們制定的戰略計劃，我們稱之為繫帶計劃。但這是通過一系列戰略和必要措施進行的深思熟慮，一個非常致力於將其變為現實的團隊，我看到它正在迅速發生。因此，這裡的想法是將我們自己定位為能夠以該類別的速度增長，這不是今天。我們知道這將是重置的一年。對於宏觀消費者問題和我們需要對庫存採取的行動，這是一個比我們預期更大的重置。所以我們仍然保持目標——那些增長目標是正確的。可能需要更長的時間。我不能確切地說，消費者壓力何時會解除。但是，我可以自信地說，我們制定的戰略將使我們在增長類別中具有很強的競爭力，並隨著時間的推移真正保持我們的市場份額。

That's helpful. And then a follow-up for Rob. How best to think about the time line of investments you're making across loyalty, technology and wages? Do you see these as investments primarily weighted to 2023 with opportunity to then leverage in '24 through '26? Or how about to think about expense leverage beyond this year?

這很有幫助。然後是 Rob 的跟進。如何最好地考慮您在忠誠度、技術和工資方面進行的投資的時間線？您是否認為這些投資主要集中在 2023 年，並有機會在 24 到 26 年發揮槓桿作用？或者如何考慮今年以後的費用槓桿？

Sure. So, the plan was always constructive to have much of those investments done this year, which is in fact, what's happening. So when you think about wages, we take a big wage action in March, that was over $30 million that was planned and again, acted on in a very strategic and important decision for us and actually one that's already bearing fruit in terms of improved conversion and improved NPS, improved employee engagement. So as we look to invest in our key assets, one of those being the strikers themselves. We view that as very favorable. So certainly glad that we're doing that. The cadence or rhythm investments that beyond that are really unchanged by the current environment. We're going to continue to lean into the strategy, as we've all been describing today. Some of those bigger investments are this year in terms of wages, IT certainly have a bigger impact on the margin line, given the softness in the top line. But once the top line gets reinvigorated, we expect those investments to be largely are more than offset by the cost optimization programs that we have in place. So we feel good about the trajectory, the investment cadence, what we're doing, the plan itself, we just have to get through this moment in time, if you will.

當然。因此，今年完成大部分投資的計劃始終是建設性的，事實上，這就是正在發生的事情。因此，當你考慮工資時，我們在 3 月份採取了一項大型工資行動，計劃超過 3000 萬美元，並且再次採取行動，對我們來說是一個非常具有戰略意義和重要的決定，實際上這個決定已經在提高轉化率方面取得成果並改善了 NPS，提高了員工敬業度。因此，當我們希望投資於我們的關鍵資產時，其中之一就是前鋒本身。我們認為這是非常有利的。很高興我們這樣做了。當前環境並沒有真正改變超出此範圍的節奏或節奏投資。正如我們今天所描述的那樣，我們將繼續傾向於該戰略。今年，其中一些較大的投資是在工資方面，考慮到頂線疲軟，IT 肯定會對利潤線產生更大的影響。但是，一旦收入重振，我們預計這些投資將在很大程度上被我們已經實施的成本優化計劃所抵消。所以我們對軌跡、投資節奏、我們正在做的事情、計劃本身感覺良好，如果你願意的話，我們只需要及時度過這一刻。

Our last question comes from Kate McShane from Goldman Sachs.

我們的最後一個問題來自高盛的 Kate McShane。

We wanted to go back to inventory for a moment. We just wondered, how you're feeling about the level of inventory in the channel as a whole, not just at Foot Locker, are you seeing a build across the board? And is it more in footwear versus apparel? And, how should we think about vendor support in an environment like this, when it comes to promotions?

我們想暫時回到庫存。我們只是想知道，您對整個渠道的庫存水平有何看法，而不僅僅是 Foot Locker，您是否看到全面的庫存水平？鞋類比服裝更多嗎？而且，在促銷方面，我們應該如何考慮在這樣的環境中對供應商的支持？

Yes, Kate, this is Frank. So we're going to learn more about that candidly. As some of our competitors announced their results here later in the month. And so, we'll look just like you will, to some of those indicators. What we do know is that we do have inventories that are up about 26% to last year. As we outlined, we have a very clear promotional cadence and calendar that we feel good about. We've seen and measure the lift and impact of those promotions throughout April and the first couple of weeks of May. And have, therefore, calibrated our investment in promotional dollars for the rest of the year, and that's implied again and what we've reported out is our new guidance there. We have worked very closely with all of our strategic vendor partners, to work through some of these short-term and transitory inventory issues. And that includes actions like RTVs, some vendor allowance dollars, and then also adjustments in reflows to the order book. So all of those things taken in combination with the promotional tactics that we have outlined and talked about, give us the confidence that, again, we're taking control of our destiny here and managing through this transition.

是的，凱特，這是弗蘭克。所以我們要坦率地了解更多。我們的一些競爭對手在本月晚些時候在這裡宣布了他們的結果。因此，對於其中一些指標，我們會像您一樣看待。我們所知道的是，我們的庫存確實比去年增加了約 26%。正如我們概述的那樣，我們有一個非常清晰的促銷節奏和日曆，我們對此感到滿意。我們已經看到並衡量了這些促銷活動在整個 4 月和 5 月的前幾週的提升和影響。因此，我們在今年剩餘時間裡調整了我們對促銷資金的投資，這再次暗示，我們報告的是我們在那裡的新指導。我們與所有戰略供應商合作夥伴密切合作，以解決其中一些短期和暫時的庫存問題。這包括 RTV、一些供應商津貼美元以及對訂單簿回流的調整等行動。因此，所有這些事情與我們概述和討論的促銷策略相結合，讓我們相信，我們再次控制了我們在這裡的命運，並通過這一轉變進行管理。

I would like to turn the call back to Ms. Mary Dillon for closing remarks.

我想將電話轉回給 Mary Dillon 女士，請她作結束語。

Thank you all for joining us today. While clearly navigating a challenging environment, we're steadfast in our commitment to the Lace Up plan, and I look forward to updating you on our further progress, next quarter. Thank you, and goodbye. .

感謝大家今天加入我們。在明確應對充滿挑戰的環境的同時，我們堅定地致力於 Lace Up 計劃，我期待著在下個季度向您通報我們的進一步進展。謝謝，再見。 .

This concludes today's conference. Thank you for participating. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連接。