Foot Locker Inc (FL) 2023 Q2 法說會逐字稿

Good morning, and welcome to Foot Locker's Second 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 effects of global economic and market conditions, currency fluctuations, customer preferences 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.

早上好，歡迎參加 Foot Locker 2023 年第二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前瞻性陳述，反映管理層對未來事件和財務業績的當前看法。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，包括全球經濟和市場狀況、貨幣波動、客戶偏好以及公司新聞稿和中更詳細描述的其他風險和不確定性的影響。向 SEC 提交的報告，包括最近提交的表格 10-K 或表格 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 also note that this conference call is being recorded. I will now turn the call over to Robert Higginbotham. Mr. Higginbotham, you may begin.

此類假設或因素的任何變化都可能產生顯著不同的結果，並且實際結果可能與前瞻性陳述中包含的結果存在重大差異。另請注意，本次電話會議正在錄音。我現在將把電話轉給羅伯特·希金博瑟姆。希金波坦先生，您可以開始了。

Thank you, operator. Welcome, everyone, to Foot Locker Inc.'s Second Quarter Earnings Call. Today's call will reference certain non-GAAP measures. A 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，接線員。歡迎大家參加 Foot Locker Inc. 第二季度財報電話會議。今天的電話會議將參考某些非公認會計原則措施。今天上午的財報中包含了 GAAP 與非 GAAP 業績的調節表。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, who will then give a more detail on our operating results across our banners and geographies. Then Mike Baughn, Executive Vice President and Chief Financial Officer, 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 Mike will respond to your questions. With that, I'll now turn it over to Mary.

今天，我們將由總裁兼首席執行官瑪麗·狄龍 (Mary Dillon) 開始我們準備好的講話；執行副總裁兼首席商務官弗蘭克·布拉肯 (Frank Bracken) 隨後將詳細介紹我們各個品牌和地區的運營業績。然後，執行副總裁兼首席財務官 Mike Baughn 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 年指導提供顏色。在我們準備好的發言之後，瑪麗、弗蘭克和邁克將回答您的問題。有了這個，我現在就把它交給瑪麗。

Thank you, Rob, and good morning, everyone. Thank you for joining us. We have a number of topics we'd like to discuss this morning, including our second quarter results, updated outlook for the year, capital allocation, additions to our team, changes in our organizational structure and the ongoing execution of our Lace Up plan. I'd like to start by touching briefly on our Lace Up plan to reinforce that we continue to believe the actions we're taking will drive our businesses forward, set Foot Locker up for sustainable and profitable growth and create long-term value for our shareholders.

謝謝你，羅布，大家早上好。感謝您加入我們。今天早上我們有很多話題想討論，包括我們的第二季度業績、今年的最新展望、資本配置、我們團隊的補充、我們組織結構的變化以及我們 Lace Up 計劃的持續執行。首先，我想簡單談談我們的Lace Up 計劃，以強調我們仍然相信我們正在採取的行動將推動我們的業務向前發展，讓Foot Locker 實現可持續和盈利的增長，並為我們的公司創造長期價值。股東。

I'm confident that we're executing the right strategies, simplifying and focusing our business and investing in capabilities required to be the modern omnichannel retailers synonymous with sneakers and sneaker culture. And we have strong assets and leverage. We have an authentic 50-year heritage that's rooted in basketball and sneaker culture with an iconic brand with over 90% brand awareness and strong social media engagement.

我相信我們正在執行正確的戰略，簡化和集中我們的業務，並投資於成為運動鞋和運動鞋文化代名詞的現代全渠道零售商所需的能力。我們擁有雄厚的資產和槓桿。我們擁有真正的 50 年傳統，植根於籃球和運動鞋文化，擁有超過 90% 的品牌知名度和強大的社交媒體參與度的標誌性品牌。

And we have strong brand partner relationships as a top wholesale partner for leading brands in our industry. With that said, we are continuing to operate in a highly dynamic retail environment. And while we developed the Lace Up plan with the knowledge that 2023 would be a reset year, sales have been softer than expected through the first half.

作為行業領先品牌的頂級批發合作夥伴，我們擁有強大的品牌合作夥伴關係。儘管如此，我們仍將繼續在高度動態的零售環境中運營。雖然我們在製定 Lace Up 計劃時知道 2023 年將是一個重置年，但上半年的銷售情況卻比預期要疲軟。

This has led us to further update our guidance for the year. In addition, as you saw in our press release this morning, our Board has made the decision to pause our dividend to provide us with additional flexibility as we execute our strategies and invest in the business to return to growth. Looking back to March, when we outlined our Lace Up plan and our longer-term targets, we were coming off a strong holiday and had not yet seen the full weight of the macro environment on our lower income consumer.

這促使我們進一步更新今年的指導。此外，正如您在今天早上的新聞稿中看到的那樣，我們的董事會已決定暫停派發股息，以便在我們執行戰略和投資業務以恢復增長時提供額外的靈活性。回顧三月份，當我們概述 Lace Up 計劃和長期目標時，我們剛剛度過了一個強勁的假期，尚未看到宏觀環境對低收入消費者的全部影響。

This became much more evident through the second quarter, including a weaker start to back-to-school. The store traffic and conversion challenges we began to see in late Q1 persisted through the second quarter as our customers remained cautious with their discretionary dollars. As a result, we promoted more heavily than initially planned to better compete for a share of our customers' wallet and manage our inventory levels.

這在第二季度變得更加明顯，包括返校開局較弱。我們在第一季度末開始看到的商店客流量和轉化挑戰一直持續到第二季度，因為我們的客戶對其可自由支配的資金保持謹慎。因此，我們的促銷力度比最初計劃的要大，以更好地爭奪客戶的錢包份額並管理我們的庫存水平。

These trends are reflected in our second quarter financial results with comps down 9.4% at the lower end of our down high single-digit guidance, which we offset with disciplined expense management, helping us to deliver a non-GAAP EPS of $0.04, near the high end of our guidance range of $0 to $0.05. The same sales and promotional dynamics have continued into August and as a result, we've lowered our sales and margin outlook for the year.

這些趨勢反映在我們第二季度的財務業績中，公司業績下降了9.4%，低於我們的高個位數指引的下限，我們通過嚴格的費用管理抵消了這一影響，幫助我們實現了0.04 美元的非GAAP 每股收益，接近我們的指導範圍上限為 0 至 0.05 美元。同樣的銷售和促銷活動一直持續到八月份，因此，我們下調了今年的銷售額和利潤率預期。

We've continued to reduce our inventory position as a result of our promotional strategies and our updated outlook for the year assumes we continue that progress to end the year flat to slightly down year-over-year. This sets us up to be better positioned into the holiday season and to transition this well into 2024.

由於我們的促銷策略，我們繼續減少庫存頭寸，並且我們更新的今年展望假設我們繼續這一進展，到年底持平或同比略有下降。這使我們能夠更好地迎接假期，並順利過渡到 2024 年。

In addition, we remain committed to expense discipline and continue to make progress on our cost savings plan this year. Our team remains agile, and we believe that the steps we're taking will allow us to continue to navigate the challenging macro environment and invest behind our strategic initiatives in support of longer-term shareholder value creation.

此外，我們仍然致力於遵守費用紀律，並在今年的成本節約計劃上繼續取得進展。我們的團隊保持敏捷，我們相信我們正在採取的步驟將使我們能夠繼續應對充滿挑戰的宏觀環境，並投資支持我們的戰略舉措，以支持長期股東價值創造。

A critical part of our path forward is having a leadership team in place that brings a right combination of industry and Foot Locker knowledge with best-in-class retail experience to bring our strategies to life. I'm excited to now have my new senior leadership team fully in place after a series of recent hires, and they bring the right combination of functional expertise, enterprise thinking and collaboration, requirements in the fast-changing world of retail and elevated customer expectations.

我們前進道路上的一個關鍵部分是建立一個領導團隊，將行業和 Foot Locker 知識與一流的零售經驗正確結合，將我們的戰略付諸實踐。在最近一系列的招聘之後，我很高興現在我的新高級領導團隊已經完全就位，他們帶來了職能專業知識、企業思維和協作、快速變化的零售世界的要求以及不斷提高的客戶期望的正確組合。

As you know, since the beginning of the year, we brought on a number of talented individuals in critical positions, including a Chief Technology Officer and Chief Customer Officer (technical difficulty). And just this quarter, we welcomed Kristin Bauer, who was most recently at TCGplayer.com and who has also spent time at T.J. Maxx, Ulta Beauty and Target as our new Chief Supply Chain Officer.

大家知道，今年以來，我們在關鍵崗位上引進了一批人才，包括首席技術官、首席客戶官（技術難度）。就在本季度，我們迎來了 Kristin Bauer，她最近加入了 TCGplayer.com，也曾在 T.J. Maxx、Ulta Beauty 和 Target 擔任我們新任首席供應鏈官。

And Jennifer Kraft, who was most recently at Starbucks, also joined us as our new EVP and General Counsel. We also welcomed our new EVP and Chief Financial Officer, Mike Baughn, who brings with him over 15 years of retail finance experience, most recently serving as Executive Vice President of Finance and Treasurer at Kohl's.

最近在星巴克任職的 Jennifer Kraft 也加入我們，擔任我們的新任執行副總裁兼總法律顧問。我們還歡迎新任執行副總裁兼首席財務官 Mike Baughn，他擁有超過 15 年的零售金融經驗，最近擔任 Kohl's 財務執行副總裁兼財務主管。

Mike's been an excellent addition to the team and will be a great partner in helping us achieve our Lace Up plan ambitions. With our senior leadership team in place, we've also recently made important structural changes to our merchandising, marketing and finance teams designed to enhance our ability to execute and immediately improve our forecasting skills and inventory management capabilities.

Mike 是團隊的出色補充，並將成為幫助我們實現 Lace Up 計劃目標的出色合作夥伴。隨著我們的高級領導團隊就位，我們最近還對我們的銷售、營銷和財務團隊進行了重要的結構性變革，旨在增強我們的執行能力，並立即提高我們的預測技能和庫存管理能力。

Frank and Mike will share more on these changes in a few moments. I'd like to now provide more details on the progress we're making within our Lace Up plan, even as we're facing a tougher year than expected. As you know, there are 4 strategic pillars to our Lace Up plan, expand sneaker culture, power up the portfolio, deepen our relationships with customers and best-in-class omni.

弗蘭克和邁克稍後將分享有關這些變化的更多信息。我現在想提供更多關於我們在 Lace Up 計劃中取得的進展的細節，儘管我們面臨著比預期更艱難的一年。如您所知，我們的 Lace Up 計劃有 4 個戰略支柱：拓展運動鞋文化、增強產品組合、加深我們與客戶的關係以及一流的全方位服務。

We're sharpening our competitive toolkit by investing behind certain technologies and capabilities to better position the business for offense and to better meet our customers' ever-evolving expectations. We're also helping our vendor partners drive incremental growth for their franchises. We're focused on being a strong partner to the brands we work with, collaborating deeply across merchandising, marketing and our omni-experience.

我們正在通過投資某些技術和能力來增強我們的競爭工具包，以更好地定位業務並更好地滿足客戶不斷變化的期望。我們還幫助我們的供應商合作夥伴推動其特許經營權的增量增長。我們致力於成為合作品牌的強大合作夥伴，在銷售、營銷和全方位體驗方面進行深入合作。

We're partnering much further upstream to build out multiyear growth plans and co-creating customer-facing marketing ideas that will drive our joint businesses. We've also been enhancing our capabilities around customer insights and data, allowing us to now share specific consumer segment opportunities and demand creation ideas with our partners.

我們正在與上游進行更深入的合作，制定多年增長計劃，並共同創造面向客戶的營銷理念，以推動我們的聯合業務。我們還一直在增強圍繞客戶洞察和數據的能力，使我們現在能夠與合作夥伴分享特定的消費者細分市場機會和需求創造想法。

As I noted earlier, we paused our dividend to provide us with greater flexibility in the current environment. We know that leaning into Lace Up is the right decision to level up our capabilities and best position the business to compete in the modern marketplace. Looking forward, we'll prioritize initiatives that will drive the greatest immediate return and also make investments in foundational areas critical to our longer-term goals as a consumer-driven omnichannel retailer.

正如我之前指出的，我們暫停了派息，以便在當前環境下為我們提供更大的靈活性。我們知道，轉向 Lace Up 是提升我們能力並讓我們的業務在現代市場競爭中處於最佳位置的正確決定。展望未來，我們將優先考慮能夠帶來最大即時回報的舉措，並對對我們作為消費者驅動的全渠道零售商的長期目標至關重要的基礎領域進行投資。

While we're in the early days of Lace Up, our team is energized by the green shoots we're seeing as our strategy starts to take hold. These proof points make us even more confident that we're moving forward in the right direction. Let me walk you through our progress on each of our 4 strategic pillars. Our first imperative is to expand sneaker culture by serving more sneaker occasions, providing more choice and driving greater distinction.

雖然我們還處於 Lace Up 的早期階段，但隨著我們的戰略開始落地，我們的團隊因看到的萌芽而充滿活力。這些證據讓我們更加確信我們正在朝著正確的方向前進。讓我向您介紹我們在四大戰略支柱上取得的進展。我們的首要任務是通過服務更多的運動鞋場合、提供更多的選擇並推動更大的差異來擴展運動鞋文化。

While our reset with Nike continues to impact the business overall, we're seeing stronger results in our Nike and Jordan Basketball business. This includes Air Force 1, AJ1, Dunk and Jordan Retro. We're also encouraged by the early sales of the new Nike Tech Fleece program, and we're thrilled to help launch Nike's first female signature basketball sneaker in the quarter.

雖然我們與耐克的重組繼續影響整體業務，但我們看到耐克和喬丹籃球業務取得了更強勁的業績。其中包括 Air Force 1、AJ1、Dunk 和 Jordan Retro。我們還對新 Nike Tech Fleece 計劃的早期銷售感到鼓舞，我們很高興能夠在本季度幫助推出 Nike 首款女性簽名籃球運動鞋。

Meanwhile, we're continuing to develop very collaborative plans with our Nike partners, investing in key areas, including basketball, kids and sneaker culture. In fact, we just partnered in bringing the best of Nike and Jordan to the basketball community in New York City with our exclusive New York versus New York Grassroots retail activation.

與此同時，我們繼續與耐克合作夥伴制定高度合作的計劃，投資於籃球、兒童和運動鞋文化等關鍵領域。事實上，我們剛剛合作，通過我們獨家的紐約對紐約草根零售活動，將耐克和喬丹的精華帶到了紐約市的籃球界。

Beyond our partnership with Nike, we're making progress on diversifying our assortments to provide more choices to our customers in line with their evolving needs, including more sneaker occasion. As a key example, we're leaning into our partnership with New Balance, now our fourth largest brand and which grew well over 100% in the second quarter.

除了與耐克的合作之外，我們還在產品種類多樣化方面取得了進展，以便為客戶提供更多選擇，以滿足他們不斷變化的需求，包括更多運動鞋場合。舉一個重要的例子，我們正在傾向於與 New Balance 建立合作夥伴關係，New Balance 現在是我們的第四大品牌，第二季度的增長遠遠超過 100%。

We also remain excited about the trajectories of newer brands like On and HOKA in performance running. While we're helping these brands extend their reach to our core shoppers, they're also helping us expand our customer base, including a more affluent and female customer. And we continue to push ahead with our growth plans with these brands. On is now in 280 doors and on its way to 350 this year. And HOKA is currently in 100 doors and headed towards 150 by year end.

我們也對 On 和 HOKA 等新品牌在高性能跑步方面的發展軌跡感到興奮。在我們幫助這些品牌擴大對核心購物者的影響力的同時，他們也在幫助我們擴大客戶群，包括更富裕的女性客戶。我們將繼續推進這些品牌的增長計劃。 On 目前已有 280 家門店，今年將增至 350 家。 HOKA 目前擁有 100 家門店，預計到年底將達到 150 家。

We also continue to see outperformance from brands like Puma, Crocs, ASICS and Brooks as our customers are seeking out other brands with us. As a result, in line with our strategy, the diversity of our brand mix beyond our top brand Nike increased to 36% from 31% last year, making good progress towards our goal of over 40% by 2026.

我們還繼續看到 Puma、Crocs、ASICS 和 Brooks 等品牌的出色表現，因為我們的客戶正在尋找我們的其他品牌。因此，根據我們的戰略，我們的頂級品牌 Nike 之外的品牌組合多樣性從去年的 31% 增加到 36%，朝著 2026 年超過 40% 的目標取得了良好進展。

Our second imperative power of the portfolio is about simplifying our portfolio of banners, creating clear lanes for each of them, while also transforming our real estate footprint through new formats and shifting off mall. Within simplifying and creating distinct lanes, first, we completed the wind down of our Sidestep banner, which will help us sharpen our focus on the Foot Locker brand in EMEA.

我們的投資組合的第二個重要力量是簡化我們的橫幅組合，為每個橫幅創建清晰的通道，同時通過新的格式和從購物中心轉移來改變我們的房地產足跡。在簡化和創建獨特的車道的過程中，首先，我們完成了 Sidestep 橫幅的逐步結束，這將幫助我們更加專注於 EMEA 地區的 Foot Locker 品牌。

And our transition of Champs Sports continues to make progress. While the Champs Sports banner continues to be the most acutely impacted by changes in our Nike allocation, the team is getting sharper with the brand's positioning as it appeals to that active athletes.

我們的冠軍體育轉型也在不斷取得進展。雖然冠軍體育的旗幟仍然受到耐克分配變化的最嚴重影響，但該團隊對該品牌的定位越來越敏銳，因為它吸引了活躍的運動員。

On real estate transformation, we opened or converted 4 new Foot Locker community and power stores across the globe in the second quarter, giving us approximately 185 stores in these newer formats, which allows us to offer a fuller expression of the category.

在房地產轉型方面，我們第二季度在全球開設或改造了 4 家新的 Foot Locker 社區和力量商店，使我們擁有約 185 家新業態的商店，這使我們能夠更全面地表達該品類。

We remain encouraged by trends that we're seeing in these locations year-to-date with traffic levels, conversion rates and average tickets all outpacing our core fleet. These stores also help us reach consumers across channels with our digital trends outperforming the rest of the market when we open up one of these new store formats.

我們仍然對今年迄今為止在這些地點看到的趨勢感到鼓舞，交通水平、轉化率和平均門票都超過了我們的核心機隊。當我們開設其中一種新的商店形式時，這些商店還可以幫助我們跨渠道接觸消費者，我們的數字趨勢優於市場上的其他產品。

All in, our new store formats now represent about 12% of our global square footage, up from 9% last year and making good progress towards our 2026 target of 20%. We're also continuing to expand the footprint at WSS, our off-mall banner that is the leading retailer focused on athletic footwear for the Latino families.

總而言之，我們的新店面面積目前約占我們全球面積的 12%，高於去年的 9%，並且在實現 2026 年 20% 的目標方面取得了良好進展。我們還繼續擴大 WSS 的業務範圍，WSS 是我們的商場外旗幟，是專注於為拉丁裔家庭提供運動鞋的領先零售商。

In the quarter, we opened 6 new locations, including 3 in the Miami metro area. Those stores are off to an encouraging start, and we remain optimistic about our regional door expansion opportunities for WSS on its path to becoming a $1.3 billion business over time, up from $600 million in 2022. Together with the off-mall locations in Foot Locker and Kids Foot Locker, we're making strides with our overall shift to more off-mall exposure with penetration reaching 36% of North American square footage, up 4 points from a year ago, and tracking well against our goal of 50% by 2026.

本季度，我們新開了 6 家門店，其中 3 家位於邁阿密都會區。這些商店有了一個令人鼓舞的開端，我們對WSS 的區域門店擴張機會保持樂觀，隨著時間的推移，WSS 的業務將從2022 年的6 億美元增長到13 億美元。加上Foot Locker 的商場外門店和Kids Foot Locker 方面，我們正在全面轉向更多的非商場曝光，滲透率達到北美面積的36%，比一年前增加4 個百分點，並且很好地實現了到2026 年50% 的目標。

Lastly, as part of our real estate transformation, we closed 108 underperforming stores during the quarter.

最後，作為我們房地產轉型的一部分，我們在本季度關閉了 108 家表現不佳的商店。

Our third imperative is deepen our relationship with our customers, which is focused on building brand equity, reaching a broader set of customers and enhancing our loyalty program and overall CRM capabilities.

我們的第三個當務之急是加深與客戶的關係，重點是建立品牌資產、接觸更廣泛的客戶並增強我們的忠誠度計劃和整體 CRM 能力。

On building brand equity, we're sharpening our creative point of view to better articulate our brand proposition and elevate our mind share with consumers. For the first time, we launched a truly global back-to-school campaign, resulting in significantly increased engagement versus last year. These efforts are translating into online customer acquisition that grew by double digits in the second quarter in North America.

在建立品牌資產方面，我們正在強化我們的創意觀點，以更好地闡明我們的品牌主張並提高我們與消費者的認知份額。我們首次發起了真正的全球性返校活動，與去年相比，參與度顯著提高。這些努力轉化為北美第二季度在線客戶獲取量實現兩位數增長。

We've invested incremental media dollars based on strong short-term online returns, fueling customer acquisitions as well as short-term online business growth. We're excited to unveil a full relaunch of the Foot Locker brand platform, including a high reach 360-degree campaign this holiday. On loyalty, 22% of our sales in the quarter were through our current loyalty program compared to 24% last year.

基於強勁的短期在線回報，我們投資了增量媒體資金，促進了客戶獲取和短期在線業務增長。我們很高興宣布全面重新推出 Foot Locker 品牌平台，其中包括今年假期的 360 度全方位宣傳活動。在忠誠度方面，本季度 22% 的銷售額來自我們當前的忠誠度計劃，而去年這一比例為 24%。

This was driven by lower Nike launch product allocation, which drives high participation among current loyalty members. We continue to make steady progress with sign-ups globally and are looking forward to our new FLX program pilot launch in Canada next month.

這是由於耐克推出的產品分配較低，從而推動了當前忠誠會員的高參與度。我們繼續在全球註冊方面取得穩步進展，並期待下個月在加拿大推出新的 FLX 計劃試點。

And our final imperative is to be best-in-class omni, which means improving our digital presence as well as better integrating our channels with each other.

我們的最後一個當務之急是成為一流的全方位服務，這意味著改善我們的數字業務以及更好地相互整合我們的渠道。

Our digital penetration in the quarter increased to 15.5%, up 50 basis points year-over-year when excluding East Bay, which we closed late last year. Digital comps in our Foot Locker and Kids Foot Locker banners in North America were actually up during the quarter with strength driven by increases in multiple conversions and new customer growth year-over-year.

本季度我們的數字滲透率增至 15.5%，若不包括去年底關閉的東灣，同比增長 50 個基點。我們在北美地區的 Foot Locker 和 Kids Foot Locker 橫幅中的數字廣告實際上在本季度有所上升，其增長動力來自於多次轉化的增加和新客戶的同比增長。

Our focus on site experience enhancements has generated significant wins, adding up to over $50 million in incremental annualized sales with new experiences and features. Our digital NPS and fulfillment NPS have improved significantly as well as we address customer friction points in our core online shopping flow as well as improve the speed and reliability of our shipments.

我們對網站體驗增強的關注已經取得了重大成果，通過新的體驗和功能，年銷售額增量超過 5000 萬美元。我們的數字 NPS 和履行 NPS 已顯著改善，我們解決了核心在線購物流程中的客戶摩擦點，並提高了發貨速度和可靠性。

Into the back half, we'll continue to upgrade our site experience with improvements in search relevancy, site navigation, product recommendations and display. This work in combination with our marketing efforts gives us confidence in our ability to achieve 25% e-commerce penetration over time. In switching to stores, this quarter, we also continued our rollout of upgraded handheld technologies, adding over 1,100 locations in the quarter.

進入下半年，我們將繼續升級我們的網站體驗，改進搜索相關性、網站導航、產品推薦和顯示。這項工作與我們的營銷工作相結合，讓我們對隨著時間的推移實現 25% 的電子商務滲透率的能力充滿信心。在轉向商店方面，本季度我們還繼續推出升級的手持技術，本季度增加了 1,100 多個門店。

This technology gives our stripers improved visibility on inventory, access to product information, ability to check out customers and improving in-store conversion. We now have updated handhelds in over 80% of our stores, up from over 50% last quarter and still expect to be fully rolled out to 100% of the fleet by the end of this year.

這項技術使我們的脫衣者能夠更好地了解庫存、獲取產品信息、了解客戶並提高店內轉化率。目前，我們已在超過 80% 的商店中更新了手持設備，高於上季度的 50% 以上，並且仍預計到今年年底將在 100% 的商店中全面推廣。

In closing, I want to emphasize that while this reset year has been tougher than we expected, I am excited about the traction we're seeing with our Lace Up plan. Importantly, our executive team is energized by the transformation taking place in the business and aligned with the Lace Up strategies. While we're early in our multiyear journey, we're confident we'll evolve Foot Locker to be a competitive omnichannel retailer and drive sustainable and profitable long-term growth and shareholder value creation. And now I'd like to hand it over to Frank to provide more detail on our performance by banner.

最後，我想強調，雖然今年的重置比我們預期的要艱難，但我對我們的 Lace Up 計劃所看到的吸引力感到興奮。重要的是，我們的執行團隊因業務轉型而充滿活力，並與 Lace Up 戰略保持一致。雖然我們仍處於多年旅程的早期階段，但我們有信心將 Foot Locker 發展成為一家具有競爭力的全渠道零售商，並推動可持續且盈利的長期增長和股東價值創造。現在我想將其交給 Frank，以按橫幅提供有關我們表現的更多詳細信息。

Thank you, Mary, and good morning, everyone. Before I dig into our 2Q performance, I wanted to address Mary's earlier comments on changes to our commercial organization. To accelerate our digital e-commerce and loyalty strategies, we just announced several key hires on our new Chief Customer Officer, Kim Waldmann. Andrew Rauch joined us as Vice President, Global Ecommerce, where he will lead our digital merchandising strategies and operations across all banners and regions.

謝謝你，瑪麗，大家早上好。在深入研究第二季度的業績之前，我想先談談瑪麗之前對我們商業組織變化的評論。為了加速我們的數字電子商務和忠誠度戰略，我們剛剛宣布了新任首席客戶官 Kim Waldmann 的幾位關鍵員工的任命。 Andrew Rauch 加入我們，擔任全球電子商務副總裁，他將領導我們在所有旗幟和地區的數字營銷戰略和運營。

Andrew joins us from PVH and Urban Outfitters, where he held similar roles. Avery Worthing-Jones also joined Foot Locker as Vice President, Digital Product Management, where he will oversee our digital customer experience across mobile, app and loyalty as well as other key technology investment areas like merchandising systems. Also, Slavka Jancikova started as our new Vice President of Marketing for Europe. Slack's experience at Nike and Adidas will be invaluable in building strong brand partnerships and consumer connections.

Andrew 在加入我們之前曾在 PVH 和 Urban Outfitters 擔任類似職務。 Avery Worthing-Jones 還加入 Foot Locker，擔任數字產品管理副總裁，負責監督我們在移動、應用程序和忠誠度以及銷售系統等其他關鍵技術投資領域的數字客戶體驗。此外，Slavka Jancikova 開始擔任我們新任歐洲營銷副總裁。 Slack 在耐克和阿迪達斯的經驗對於建立強大的品牌合作夥伴關係和消費者聯繫至關重要。

To help elevate our brand storytelling and content across all channels, Matthew Wright joins us as our new Vice President and Global Creative Director. Matthew will leverage his deep experience with brands like Nike, Levi's and Urban Outfitters to ensure our Foot Locker brands maintain their high levels of consumer engagement and relevance in sneaker culture.

為了幫助提升我們在所有渠道的品牌故事和內容，Matthew Wright 加入我們，擔任我們的新副總裁兼全球創意總監。 Matthew 將利用他在 Nike、Levi's 和 Urban Outfitters 等品牌的豐富經驗，確保我們的 Foot Locker 品牌保持高水平的消費者參與度和運動鞋文化的相關性。

And finally, we are bringing on a new Vice President of Loyalty and CRM who will drive a holistic agenda, including the relaunch of our FLX rewards program and our personalization road map. These changes under Kim give us the leadership front line to modernize our demand creation capabilities and to position our brands to connect with consumers in a truly meaningful way.

最後，我們將任命一位新的忠誠度和 CRM 副總裁，他將推動整體議程，包括重新啟動我們的 FLX 獎勵計劃和個性化路線圖。 Kim 領導下的這些變化為我們提供了領導力，使我們的需求創造能力現代化，並使我們的品牌以真正有意義的方式與消費者建立聯繫。

Next to that, we have made changes to our merchandising organization to streamline decision making and align accountabilities more directly within our consumer-led banners. First, we realigned the buying teams within our banner GM structure, enabling a higher degree of coordination and accountability across the merchandising function.

除此之外，我們對銷售組織進行了變革，以簡化決策並在以消費者為主導的旗幟下更直接地調整責任。首先，我們在總經理架構內重新調整了採購團隊，使整個銷售職能部門實現了更高程度的協調和問責。

As we have created very clear lanes of differentiation between the banners, now is the right time for this change. Additionally, this puts our buying function closer to the consumer and our marketing teams so that we can partner with vendors in a more integrated manner, leading with consumer insights and developing holistic omnichannel experiences.

由於我們在橫幅之間創建了非常清晰的區分通道，因此現在是進行此更改的最佳時機。此外，這使我們的購買職能更加貼近消費者和營銷團隊，以便我們能夠以更加一體化的方式與供應商合作，引導消費者洞察並開發整體的全渠道體驗。

We also appointed Bryon Milburn to a newly defined role as our Senior Vice President and Chief Merchandising Officer. Bryon brings over 30 years of industry experience as a merchant and general manager. And in his new capacity, he will build a merchandising center of excellence to elevate our visual merchandising and in-store experience, modernize our merchandising planning, analytics and data sharing and finally, collaborate closely with Kim's customer marketing organization to elevate our brand partnerships.

我們還任命布萊恩·米爾伯恩 (Bryon Milburn) 擔任新定義的高級副總裁兼首席營銷官。 Bryon 擁有 30 多年作為商人和總經理的行業經驗。在他的新職位上，他將建立一個卓越的營銷中心，以提升我們的視覺營銷和店內體驗，實現我們的營銷規劃、分析和數據共享的現代化，最後，與Kim 的客戶營銷組織密切合作，以提升我們的品牌合作夥伴關係。

He will also oversee our global footwear strategy team and our vertical brand development function. Bryon will be announcing some key new hires in the coming weeks to our global merchandising organization. In summary, these changes to our organization will enable us to modernize our capabilities in support of Lace Up, while bringing a more integrated and consumer-led offense to our vendor partnerships.

他還將監督我們的全球鞋類戰略團隊和垂直品牌開發職能。布萊恩將在未來幾週內向我們的全球銷售組織宣布一些重要的新員工。總之，我們組織的這些變化將使我們能夠實現支持 Lace Up 的能力現代化，同時為我們的供應商合作夥伴關係帶來更加集成和消費者主導的進攻。

Now let me comment on our second quarter performance. By category, footwear comp down high single digits, while apparel fell mid-teens and accessories were down low double digits. In footwear, recall that we are cycling through the second of 4 quarters of the Nike reset. As I've previously shared, we made the decision to prefer Foot Locker and Kids Foot Locker for that allocated product over Champ Sports.

現在讓我評論一下我們第二季度的業績。按類別劃分，鞋類的銷售額下降了高個位數，而服裝的銷售額下降了十幾歲，配飾的銷售額下降了兩位數。在鞋類方面，回想一下，我們正在經歷耐克重置的四個季度中的第二個季度。正如我之前分享的，我們決定優先選擇 Foot Locker 和 Kids Foot Locker 來分配產品，而不是 Champ Sports。

Starting with basketball, we are seeing relative strength in court classics and retro styles from Nike and Jordan, which continue to be a meaningful connection point to the culture of basketball for our men's, women's and kids consumers. And we were pleased to help launch the Nike Sabrina 1, Nike's first signature basketball shoe for a female athlete.

從籃球開始，我們看到耐克和喬丹在球場經典和復古風格方面的相對優勢，這仍然是我們的男士、女士和兒童消費者與籃球文化的有意義的連接點。我們很高興幫助推出 Nike Sabrina 1，這是 Nike 首款專為女運動員設計的簽名籃球鞋。

As we think about expanding sneaker culture, we welcome the opportunity to broaden access to new consumers with great product innovation and storytelling like the Sabrina 1. I would also like to highlight our recent basketball partnership with the Nike brand this summer to celebrate the heart and soul of basketball here in New York City. We were proud partners of the New York versus New York City basketball program and were able to activate at retail, in local communities as well as digitally.

當我們考慮擴大運動鞋文化時，我們歡迎有機會通過Sabrina 1 等出色的產品創新和故事講述來擴大新消費者的接觸範圍。我還想強調我們今年夏天與耐克品牌最近的籃球合作夥伴關係，以慶祝我們的心和紐約市的籃球靈魂。我們很榮幸成為紐約對紐約市籃球項目的合作夥伴，並且能夠在零售、當地社區以及數字領域進行激活。

And we are thrilled to be Nike's retail partner next month as we help them celebrate basketball culture across New York in the way that only Nike can. The running category continues to be a tale of 2 cities. New Balance continues to drive impressive growth in consumer connectivity across all banners and geographies. We were pleased to gain market share with the New Balance brand in Q2 and point to great innovation, storytelling and in-store presentation as the key levers, including events like Gray Day as well as featuring New Balance in our back-to-school campaign, sneaker season.

我們很高興下個月成為耐克的零售合作夥伴，因為我們幫助他們以只有耐克才能做到的方式在紐約慶祝籃球文化。跑步類別仍然是兩個城市的故事。 New Balance 繼續推動所有旗幟和地區的消費者連接性取得令人矚目的增長。我們很高興在第二季度獲得 New Balance 品牌的市場份額，並指出偉大的創新、講故事和店內展示是關鍵槓桿，包括 Gray Day 等活動以及在我們的返校活動中以 New Balance 為特色，運動鞋季節。

We are also thrilled with the performance of On Running and HOKA, 2 brands that continue to bring category-defining innovation and style to the marketplace. As we grew market share with both of these brands in Q2, we are excited that they are bringing even more female consumers into sneaker culture and our retail banners. And so we're quite pleased to expand the door base in late Q2 to capture even more opportunity at back-to-school and holiday.

我們還對 On Running 和 HOKA 的表現感到興奮，這兩個品牌繼續為市場帶來類別定義的創新和風格。隨著我們在第二季度增加這兩個品牌的市場份額，我們很高興他們將更多的女性消費者帶入運動鞋文化和我們的零售旗幟中。因此，我們非常高興在第二季度末擴大入學基礎，以在返校和假期期間抓住更多機會。

Meanwhile, challenges remain within some core lifestyle running platforms. Our team is managing our inventory levels and merchandise margins while we navigate through these challenges and move our open-to-buy dollars to more productive categories. One trend-driven footwear concept that we are excited about this fall in holiday is terrace or the local football.

與此同時，一些核心生活方式跑步平台仍然面臨挑戰。我們的團隊正在管理我們的庫存水平和商品利潤，同時我們應對這些挑戰並將我們的開放購買資金轉移到更俱生產力的類別。我們對今年秋季假期感到興奮的一種趨勢驅動的鞋類概念是露台或當地足球。

Led by the Adidas brand, we are seeing strong global sell-throughs of key silhouettes, and our inventory and in-store presentation will continue to improve as the year goes on.

在阿迪達斯品牌的帶領下，我們看到主要款式的全球銷量強勁，隨著時間的推移，我們的庫存和店內展示將繼續改善。

Moving to apparel. While the category was down significantly, our vertical brands outperformed down 1% and reaching 12% penetration or 2 points better than last year.

轉向服裝。雖然該品類大幅下降，但我們的垂直品牌表現優於大盤，下降了 1%，滲透率達到 12%，比去年提高了 2 個百分點。

We remain excited about our newer labels, Locker and Cozi as well as the launch of CSG active this fall season. We're also seeing very strong sell-throughs of the new Nike Tech Fleece collection at back-to-school, which we expect to continue into the back half. And while we've moderated our expectations for the back half, there are a number of exciting trends and innovations to point to this fall and holiday season, including the scaling of Nike signature basketball models at holiday during the NBA season tip-off and key icons like the Dunk.

我們對新品牌 Locker 和 Cozi 以及今年秋季推出的 CSG active 仍然感到興奮。我們還看到返校期間新款 Nike Tech Fleece 系列的銷量非常強勁，我們預計這種情況將持續到下半年。雖然我們降低了對後半段的期望，但今年秋季和假期仍將出現許多令人興奮的趨勢和創新，包括 NBA 賽季開場和關鍵假期期間 Nike 標誌性籃球鞋款的尺寸調整像Dunk 這樣的圖標。

Rihanna's collaboration with Puma is launching again this holiday. The exclusive launch of Anthony Edwards signature basketball shoe with Adidas, increased supply of models like the Adidas Samba, Gazelle and CANVAS which are gaining consumer momentum, seasonally relevant classics and concepts from UGG and the ongoing door expansion of On and HOKA.

Rihanna 與 Puma 的合作款將於這個假期再次推出。與阿迪達斯獨家推出安東尼·愛德華茲(Anthony Edwards) 簽名籃球鞋，增加了阿迪達斯Samba、Gazelle 和CANVAS 等型號的供應，這些鞋款正在獲得消費者的青睞，UGG 的季節性相關經典和概念以及On 和HOKA 的持續擴張。

Additionally, we are incredibly excited to introduce our new Foot Locker brand platform this holiday season. Under the positioning, the Heart of Sneakers, Foot Locker will be helping sneaker enthusiasts and gift givers across the globe with a big assist from our world famous stripers. In collaboration with our vendor partners and featuring the best of sneaker culture and a few cameos that are sure to get the consumers' attention, we will make sure that no shopper is left behind with the help of our Striper entourage.

此外，我們非常高興能在這個假期推出我們新的 Foot Locker 品牌平台。在“運動鞋之心”的定位下，Foot Locker 將在世界著名條紋運動員的大力支持下，為全球運動鞋愛好者和禮品贈送者提供幫助。通過與我們的供應商合作夥伴合作，並以最好的運動鞋文化和一些一定會引起消費者註意的客串為特色，我們將確保在我們的Striper 隨行人員的幫助下，沒有一個購物者被拋在後面。

By channel, comparable sales in our stores decreased 8.6%, driven mainly by traffic declines, but also from in-store conversion and some pressure on average ticket. Digital comps fell by 13.1%. However, excluding East Bay, the e-com-only banner we wound down late last year, digital comps declined by 5.4%, much better than our original plan. Encouragingly, our Foot Locker North America and Kids Foot Locker banners saw positive digital comps as we are seeing momentum with new nonlaunch customers and higher conversion rates led by mobile.

按渠道劃分，我們門店的可比銷售額下降了 8.6%，主要是由於客流量下降，但也受到店內轉化率和平均門票壓力的影響。數字公司下跌 13.1%。然而，如果不包括去年年底我們關閉的純電子商務旗幟 East Bay，數字比較下降了 5.4%，比我們最初的計劃要好得多。令人鼓舞的是，我們的 Foot Locker North America 和 Kids Foot Locker 橫幅看到了積極的數字競爭，因為我們看到了新的未推出客戶的勢頭以及移動設備帶來的更高轉化率。

In North America, overall comps declined by 12.4%. At Foot Locker North America, comps fell by 4.6%, with the consumer and product headwinds cited above offsetting strength in the culture of basketball and running innovation. Encouragingly, our power and community stores out comped the balance of chain in Q2 by several percentage points.

在北美，整體比較下降了 12.4%。 Foot Locker North America 的業績下降了 4.6%，上述消費者和產品不利因素抵消了籃球文化和跑步創新的優勢。令人鼓舞的是，我們的電力和社區商店在第二季度彌補了連鎖店的平衡幾個百分點。

Kids Foot Locker comps were down 4.7%, driven by similar headwinds as Foot Locker. Our House of Play doors are comping several points better than the balance of chain, giving us confidence that these expanded formats are connecting well with consumers.

Kids Foot Locker 的股價下跌 4.7%，受到與 Foot Locker 類似的不利因素的推動。我們的 House of Play 門的綜合表現比連鎖店的平衡好幾分，這讓我們相信這些擴展的業態能夠與消費者建立良好的聯繫。

With the door expansions of New Balance and HEYDUDE during Q2 and the successful launch of On Running at KFL for back-to-school, we remain convinced that KFL is a highly differentiated and competitive advantage for Foot Locker, Inc. At Champs Sports, comps were down 25%, as we prefer the Foot Locker banner for key launches and constrained supply of Nike Inc. products during the reset.

隨著 New Balance 和 HEYDUDE 在第二季度的擴張以及在 KFL 成功推出 On Running 返校計劃，我們仍然相信 KFL 是 Foot Locker, Inc. 的高度差異化和競爭優勢。下降了25%，因為我們更喜歡在重要發布中使用Foot Locker 橫幅，並且在重置期間Nike Inc. 產品的供應受到限制。

That said, the Champs team has done a great job sharpening their consumer merchandising and marketing pillars of performance, sports style and sneaker essentials. As such, we did see good growth from performance brands such as Under Armour, ASICS, Brooks and Saucony. And while Champs continues to feel the greatest impact from the change with Nike, we're encouraged by the seeds being planted with the active athlete as our repositioning continues.

也就是說，Champs 團隊在強化消費者銷售和營銷支柱（性能、運動風格和運動鞋必需品）方面做得非常出色。因此，我們確實看到了 Under Armour、ASICS、Brooks 和 Saucony 等運動品牌的良好增長。雖然Champs繼續感受到耐克的變化帶來的最大影響，但隨著我們重新定位的繼續，我們對這位現役運動員播下的種子感到鼓舞。

Our WSS banner saw comps down 7.9% in 2Q, owing to a softer macro environment. While traffic was down, the business deployed tactical promotions to drive improved conversion as a partial offset. During the quarter, we opened 6 stores, bringing our total to 126 stores. And we are on track to open approximately 25 for the year for growth of 20%.

由於宏觀環境疲軟，我們的 WSS 旗幟在第二季度的比較下降了 7.9%。雖然流量下降，但該公司部署了戰術促銷活動來提高轉化率，作為部分抵消措施。本季度，我們開設了 6 家門店，使門店總數達到 126 家。我們預計今年將開設約 25 家，增長率為 20%。

Turning to Europe. Overall comps were down by 2.3%, with Foot Locker Europe down 1.1%, while Sidestep comped down 35% as we exited the business. As the macro environment remains challenging across parts of Europe, the team is focused on controlling the controllables with emphasis on conversion, inventory liquidation and reigniting the Foot Locker brand in key markets.

轉向歐洲。整體比較下降了 2.3%，其中 Foot Locker Europe 下降了 1.1%，而隨著我們退出該業務，Sidestep 的比較下降了 35%。由於歐洲部分地區的宏觀環境仍然充滿挑戰，該團隊專注於控制可控因素，重點是轉換、庫存清算以及在關鍵市場重新點燃 Foot Locker 品牌。

In Asia Pacific, comps were up 0.4%. We saw Foot Locker banner comps up 5.7%, driven by successful brand diversification efforts and tourism returning to key big cities. Within Asia, we closed our stores in Macau and Hong Kong and completed our conversion to a licensing model in Singapore and Malaysia.

在亞太地區，同比上漲 0.4%。在成功的品牌多元化努力和旅遊業回歸主要大城市的推動下，Foot Locker 的橫幅廣告價格上漲了 5.7%。在亞洲，我們關閉了澳門和香港的門店，並在新加坡和馬來西亞完成了向授權模式的轉變。

We are thankful to have a strong local partner in MAP Active to execute our Foot Locker brand experience. And finally, at atmos, comps fell 10%, a strong tourism rebound in Japan was offset by a steep drag from launch. So while near-term trends are not meeting our expectations, the team remains committed to our Lace Up strategy.

我們很感謝 MAP Active 擁有強大的本地合作夥伴來執行我們的 Foot Locker 品牌體驗。最後，atmos 的比較下降了 10%，日本旅遊業的強勁反彈被推出後的嚴重拖累所抵消。因此，儘管近期趨勢未達到我們的預期，但團隊仍致力於我們的 Lace Up 策略。

The new leadership talent that we have added as well as the marketing and merchandising capabilities we are building gives our team confidence that we are laying the foundation for long-term growth. I'll now hand the call over to Mike to go over the financials and guidance in more detail.

我們增加的新領導人才以及我們正在建設的營銷和銷售能力使我們的團隊充滿信心，相信我們正在為長期增長奠定基礎。我現在將把電話轉給邁克，以更詳細地了解財務和指導。

Thank you, Frank, and good morning, everyone. I've been at Foot Locker for just over 2 months, and in that time, I've been diving in to learn the business and getting to know the team. And I am confident in the opportunities for growth we have ahead of us and that we are operating the right strategy to get there.

謝謝弗蘭克，大家早上好。我在 Foot Locker 工作才兩個多月，在這段時間裡，我一直在潛心學習業務並了解團隊。我對我們面前的增長機會充滿信心，並且我們正在採取正確的戰略來實現這一目標。

That said, I'm realistic about the challenges facing us today as we operate through the reset portion of the Lace Up plan. I've had the opportunity to quickly partner with the leadership team, the finance department and the leaders of our banners. And I'd like to provide an update on where I've been focusing my attention.

也就是說，我對我們今天面臨的挑戰很現實，因為我們正在執行“繫帶”計劃的重置部分。我有機會快速與領導團隊、財務部門和我們旗下的領導合作。我想提供我一直關注的最新情況。

First is prioritization. With 2023 missing our original expectations, my work has been on how the business can best optimize its financial investments within markdowns, expenses and capital expenditure dollars, while knowing the business needs to continue to make the technology and capability investments to position us for the long term.

首先是優先級。由於2023 年未達到我們最初的預期，我的工作一直是研究企業如何在降價、費用和資本支出方面最好地優化其財務投資，同時知道企業需要繼續進行技術和能力投資，以使我們能夠長期定位學期。

Second and probably most important to the people listening on this call I've been looking at how the business is forecasted internally, what process improvements we can put in place and where accountability falls within the organization. That evaluation is why we made changes to how finance is structured across Foot Locker.

其次，對於收聽本次電話會議的人們來說，可能也是最重要的一點，我一直在研究內部如何預測業務、我們可以實施哪些流程改進以及組織內部的責任歸屬。基於這一評估，我們改變了 Foot Locker 的財務結構。

Our banner Chief Financial Officers and their teams now report to me directly, whereas previously they reported up through their respective banners. I'm confident this increased connectivity across finance functions can instill more consistency into our internal forecasting capabilities and ensure we are optimizing our financial decisions for global Foot Locker.

我們的首席財務官及其團隊現在直接向我匯報，而以前他們通過各自的旗幟進行匯報。我相信，財務職能之間增強的連通性可以使我們的內部預測能力更加一致，並確保我們優化全球 Foot Locker 的財務決策。

Third, in light of the tougher reset here in 2023, I've been focused on ensuring how our current performance will translate into holiday, then into 2024 and then into our longer-term financial goals. That means the progress that we have been making on inventory levels needs to continue into the back half, and we need to remain disciplined in our cost efforts to help fund our investments.

第三，鑑於 2023 年將進行更嚴格的重置，我一直致力於確保我們當前的業績將如何轉化為假期，然後轉化為 2024 年，然後轉化為我們的長期財務目標。這意味著我們在庫存水平方面取得的進展需要持續到下半年，並且我們需要在成本方面保持嚴格，以幫助為我們的投資提供資金。

Now turning to 2Q results. Starting with revenues. Our total sales fell by 9.9% on a comp decline of 9.4% at the lower end of our outlook of down high single digits. By month, May comps were down low double digits; June, down high single digits; and July, down in the low double-digit range again. While our launch calendar improved in July, our nonlaunch business decelerated as we approached back-to-school.

現在轉向第二季度的業績。從收入開始。我們的總銷售額下降了 9.9%，而公司銷售額下降了 9.4%，處於我們預期的高個位數下降的下限。按月來看，5 月份的比較下降了兩位數的低位；六月，下降高個位數； 7 月份，再次下降至兩位數的低位。雖然我們的發布日曆在 7 月份有所改善，但隨著返校臨近，我們的非發佈業務減速了。

And while we see our customers respond to newness, they remain value focused. And as a result, we continue to utilize increased promotions to support the business.

雖然我們看到客戶對新鮮事物做出反應，但他們仍然以價值為中心。因此，我們繼續利用更多的促銷活動來支持業務。

Moving down the income statement. Gross margin for the quarter declined 460 basis points to 27.1%. Merchandise margins fell by 300 basis points, driven by higher promotions to move through inventory and to reach our price-sensitive shopper.

將損益表向下移動。該季度毛利率下降 460 個基點至 27.1%。商品利潤率下降了 300 個基點，原因是為了清理庫存並吸引對價格敏感的購物者進行更多促銷活動。

We also continued to see elevated shrink levels. Occupancy deleveraged by 160 basis points on the sales decline. Offsetting pressure from promos, shrink and occupancy deleverage was approximately $15 million of gross margin savings from our cost optimization programs. For the second quarter, our SG&A rate came in at 23.8%, representing deleverage of 190 basis points with savings from the cost optimization program of approximately $20 million, more than offset by deleverage on the sales decline, inflation and investments in frontline wage and technology.

我們還繼續看到收縮水平上升。由於銷售下降，入住率下降了 160 個基點。我們的成本優化計劃節省了約 1500 萬美元的毛利率，抵消了促銷、縮減和入住率去槓桿帶來的壓力。第二季度，我們的 SG&A 率為 23.8%，去槓桿化達 190 個基點，成本優化計劃節省了約 2000 萬美元，但被銷售下降、通貨膨脹以及一線工資和技術投資的去槓桿化所抵消。 。

With our cost optimization program generating total savings of approximately $35 million in the second quarter, we remain on track to capture approximately 40% of the total $350 million targeted savings this year. Our non-GAAP tax rate for the quarter was 59.5%, higher than our typical rate, but as expected, given the low level of overall earnings combined with losses in Asia that don't have a tax benefit.

我們的成本優化計劃在第二季度實現了約 3500 萬美元的總節省，我們仍有望實現今年 3.5 億美元目標節省總額的約 40%。我們本季度的非 GAAP 稅率為 59.5%，高於我們的典型稅率，但考慮到總體盈利水平較低，加上沒有稅收優惠的亞洲虧損，這符合預期。

GAAP EPS came in at a loss of $0.05 and our non-GAAP earnings at $0.04, which is at the higher end of our $0 to $0.05 guidance.

GAAP 每股收益虧損 0.05 美元，非 GAAP 收益為 0.04 美元，處於我們 0 至 0.05 美元指導的上限。

Moving on to our outlook for the rest of the year. Given our July exit rate and softness that is continuing into August, we are lowering our full year expectations. For the year, including the extra week, we are lowering our guidance for non-GAAP EPS to the range of $1.30 to $1.50, down from our prior range of $2 to $2.25.

繼續我們對今年剩餘時間的展望。鑑於我們 7 月份的退出率以及持續到 8 月份的疲軟狀態，我們正在降低全年預期。對於今年，包括額外的一周，我們將非 GAAP 每股收益指引從之前的 2 美元至 2.25 美元下調至 1.30 美元至 1.50 美元。

That is inclusive of the following drivers: we now expect comps to decline by 9% to 10% versus the prior range of down 7.5% to down 9%. The midpoint of that guidance range assumes no improvement in year-to-date comp performance. The lower end contemplates modest weakening in trends to reflect macro risk, including potential pressure from factors like the resumption of student loan payments.

這包括以下驅動因素：我們現在預計比較將下降 9% 至 10%，而之前的下降範圍為 7.5% 至 9%。該指導範圍的中點假設年初至今的比較業績沒有改善。低端預期趨勢略有減弱，以反映宏觀風險，包括恢復學生貸款支付等因素帶來的潛在壓力。

And the upper end reflects some of the early wins and building momentum we are seeing from our strategic initiatives. Overall, our store count will be down approximately 9% in 2023, with square footage down approximately 4% as we convert more stores to our larger formats. With the extra week adding approximately 1% to our sales, total sales for the 53-week year are expected to fall by 8% to 9%.

上限反映了我們從戰略舉措中看到的一些早期成果和勢頭。總體而言，隨著我們將更多商店轉變為更大的業態，到 2023 年，我們的商店數量將減少約 9%，面積將減少約 4%。由於額外一周的銷售額增加了約 1%，因此 53 週的一年總銷售額預計將下降 8% 至 9%。

With sales softer than anticipated, we are taking more aggressive actions on promotions to drive demand and manage our inventory to ensure we are best positioned for the upcoming holiday season and for a clean transition into 2024. As a result, we now expect our gross margin to decline by 390 to 410 basis points to a rate of 27.8% to 28.0% down from our previous guidance for a 310 to 330 basis points decline given steeper markdown activity to move through elevated inventory levels, occupancy deleverage on the bigger comp decline and elevated shrink.

由於銷售低於預期，我們正在採取更積極的促銷行動，以推動需求並管理我們的庫存，以確保我們為即將到來的假日季節做好最佳準備，並順利過渡到2024 年。因此，我們現在預計我們的毛利率考慮到庫存水平上升導致的降價活動加劇、公司規模較大下滑導致的入住率去槓桿化以及租金水平上升，我們的預期下降了390 至410 個基點，至27.8% 至28.0% 。收縮。

On SG&A, we now expect to deleverage between 90 to 110 basis points to a rate of 22.7% to 22.9%. While we continue to manage our expenses tightly, we expect to see greater deleverage on the larger sales declines. Finally, our CapEx outlook for the year is now $290 million, updated from $305 million previously due to the favorable project pricing as well as a shift of project timing into early 2024.

在SG&A方面，我們現在預計將去槓桿化90至110個基點至22.7%至22.9%。雖然我們繼續嚴格管理開支，但我們預計銷售額下降幅度更大，去槓桿化程度將會更大。最後，由於有利的項目定價以及項目時間轉移至 2024 年初，我們對今年的資本支出前景從之前的 3.05 億美元更新為 2.9 億美元。

While we will not be providing quarterly guidance on an ongoing basis, we wanted to provide some context on our back half expectations. On earnings, our current view is that the third and fourth quarters land relatively similar on a non-GAAP per share basis, excluding the 53rd week. And finally, turning to the balance sheet. We ended the quarter with $180 million of cash and total liquidity of approximately $780 million, including our untapped credit facility.

雖然我們不會持續提供季度指導，但我們希望提供一些有關下半年預期的背景信息。就收益而言，我們目前的觀點是，按非公認會計原則每股計算，第三季度和第四季度的業績相對相似（不包括第 53 週）。最後，轉向資產負債表。本季度結束時，我們擁有 1.8 億美元現金，總流動資金約為 7.8 億美元，其中包括我們未動用的信貸額度。

At quarter end, our inventories were 11% above last year, but down from the 25% at the start of the quarter. We still expect to end the year flat to slightly down versus last year. We paid $37 million in dividends and did not repurchase any stock during the quarter. And as Mary noted previously, given our 2023 performance and to position us with as much flexibility as possible, we are pausing our quarterly dividend.

季度末，我們的庫存比去年同期增加 11%，但低於季初的 25%。我們仍然預計今年年底的業績將與去年持平或略有下降。我們在本季度支付了 3700 萬美元的股息，並且沒有回購任何股票。正如瑪麗之前指出的，考慮到我們 2023 年的業績，並為了讓我們擁有盡可能多的靈活性，我們將暫停季度股息。

We will pay our dividend on October 27 to holders of record on October 13, as announced, after which we will pause.

正如所宣布的那樣，我們將於 10 月 27 日向 10 月 13 日登記在冊的持有人支付股息，之後我們將暫停支付股息。

Before we turn it over to questions, I want to reiterate that our management team at Foot Locker is aligned and dedicated to implementing the Lace Up plan, and we're motivated by the early wins we are seeing.

在我們提出問題之前，我想重申，Foot Locker 的管理團隊一致致力於實施 Lace Up 計劃，我們看到的早期勝利也激勵著我們。

Acknowledging that 2023 is performing below our initial expectations, we intend to revisit our longer-term financial target timing as well as capital allocation plans beyond 2023 when we report our fourth quarter results. We look forward to updating you on our progress against our goals next quarter. With that, operator, please open the call for questions.

承認 2023 年的表現低於我們的最初預期，我們打算在報告第四季度業績時重新審視我們的長期財務目標時間以及 2023 年之後的資本配置計劃。我們期待向您通報下季度目標的最新進展情況。那麼，接線員，請打開提問電話。

(Operator Instructions). Today's first question comes from Bob Drbul with Guggenheim.

（操作員說明）。今天的第一個問題來自古根海姆的鮑勃·德布爾（Bob Drbul）。

I guess the question that I have is just around the Nike relationship. Can you just give us an update around when you think Nike comps could return to positive from the business standpoint? And then I guess just the other update would be helpful is like exclusive penetration, sort of what you're seeing on any level of exclusives within the business?

我想我的問題只是圍繞耐克的關係。從商業角度來看，您認為耐克的業績何時會恢復正值，您能給我們介紹一下最新情況嗎？然後我想其他更新會有所幫助，就像獨家滲透一樣，您在業務中的任何級別的獨家銷售中都看到了什麼？

Thank you, Bob. This is Mary. And actually, let me just start by reiterating, we apologize for the quality of the audio of the call. Hopefully, the Q&A will be clear. And if there's anything you need to clarify, please let us know. Bob, thank you for starting there. Let me just start by saying, obviously, Nike is a very important partner, and we continue to build a strong relationship with them.

謝謝你，鮑勃。這是瑪麗。實際上，首先讓我重申，我們對通話音頻的質量表示歉意。希望問答會很清楚。如果您有任何需要澄清的地方，請告訴我們。鮑勃，謝謝你從這裡開始。首先我要說的是，顯然，耐克是一個非常重要的合作夥伴，我們將繼續與他們建立牢固的關係。

We really focus together on the areas that are unique and specific to both of us in the marketplace, basketball, kids and sneaker culture. And in fact, as you heard Frank mentioned in the prepared remarks, we just recently did a really neat grassroots event here in New York, celebrating the culture of basketball New York versus New York. And we're pleased to be one of the retailers launching the Sabrina 1 shoe for women. So that's all great.

我們確實共同關注市場、籃球、兒童和運動鞋文化等對我們雙方來說獨特且特定的領域。事實上，正如弗蘭克在準備好的發言中提到的那樣，我們最近剛剛在紐約舉辦了一場非常整潔的草根活動，慶祝紐約與紐約的籃球文化。我們很高興成為推出 Sabrina 1 女鞋的零售商之一。所以這一切都很棒。

And we see lots of strength coming. This is yet the reset year though, of course, and so we knew that we'd be working through this for a couple of quarters as there's a reset in the marketplace and would expect that we will be back to growth as we move forward into the future year starting next year. So we're working closely together on those topics and feel really good about it. And do you want to talk about exclusives?

我們看到大量的力量即將到來。當然，今年仍然是重置的一年，所以我們知道我們將在幾個季度內解決這個問題，因為市場會重置，並且預計隨著我們進入未來的一年從明年開始。因此，我們正在這些主題上密切合作，並且感覺非常好。您想談談獨家內容嗎？

Sure. Absolutely. Yes. I would just say the team continues to make really good progress. So as examples, we've had great success with the Puma LaMelo that anniversaries into its third iteration, which will be launching here for the new NBA season. This holiday, we'll also be launching the Edwards 1 with our partners at Adidas.

當然。絕對地。是的。我只想說團隊繼續取得非常好的進展。舉個例子，我們在 Puma LaMelo 的第三次迭代中取得了巨大成功，該鞋款將在新的 NBA 賽季在這裡推出。這個假期，我們還將與阿迪達斯合作夥伴一起推出 Edwards 1。

And then just recently on the topic of Nike, we celebrated a really great [junior] release in France at our stores in Marseille as well as across the better part of Continental Europe, which had incredible sell-throughs and generated a lot of tremendous buzz. So the team continues to make very good progress. And then next to that, you heard in my prepared remarks, our progress on vertical brands in Locker, Cozi and then the launch of CSG Active. So the team continues to make very good progress on exclusivity.

最近，就耐克的話題而言，我們在法國馬賽以及歐洲大陸大部分地區的商店慶祝了一款非常出色的[初級]發布，該產品的銷量令人難以置信，並引起了巨大的轟動。所以團隊繼續取得很好的進步。接下來，您在我準備好的發言中聽到了我們在 Locker、Cozi 垂直品牌方面的進展，以及 CSG Active 的推出。因此，該團隊在排他性方面繼續取得非常好的進展。

Great. And just a follow-up. On the decision to cut the dividend and the financial flexibility, just wondering if you could give us sort of your updated thoughts around the GOAT ownership stake that you have?

偉大的。只是後續行動。關於削減股息和財務靈活性的決定，只是想知道您是否可以向我們提供有關您所擁有的 GOAT 所有權股份的最新想法？

Maybe we'll start with the dividend, if that's okay, and then we can come back to that. But as we -- as you know, part of our Lace Up plan is to pay the dividend about a 30%, 35% payout ratio. So with our new EPS guidance, we're at a substantial payout ratio. And along with the Board pause -- made the decision to pause to give us more flexibility and continue to invest in our long-term Lace Up plan. Would you like to add a thing about GOAT, Frank, on that?

如果可以的話，也許我們會從股息開始，然後我們可以回到這個話題。但正如你們所知，我們 Lace Up 計劃的一部分是以 30%、35% 的派息率支付股息。因此，根據我們新的每股收益指引，我們的派息率很高。隨著董事會的暫停，我們決定暫停，以便為我們提供更大的靈活性，並繼續投資於我們的長期 Lace Up 計劃。弗蘭克，你想在此基礎上補充一點關於山羊的事情嗎？

Yes, sure. So what I can share is we continue to be a large shareholder within GOAT Group. We continue to partner each quarter on data sharing, looking for integration opportunities and insights into the marketplace. And certainly, we'll continue to update you guys as we see future results and future opportunities for the 2 brands.

是的，當然。所以我可以分享的是我們仍然是 GOAT 集團的大股東。我們繼續每個季度在數據共享方面進行合作，尋找整合機會和對市場的洞察。當然，當我們看到這兩個品牌的未來結果和未來機會時，我們將繼續向大家通報最新情況。

And our next question today comes from Warren Cheng with Evercore ISI.

今天我們的下一個問題來自 Evercore ISI 的 Warren Cheng。

I wanted to ask about the Champs reposition. Are you making any tweaks to your strategy for Champs, especially outlined for us in March given what's been a pretty significant impact from the reposition? And also, is there a way to quantify the impact of the actions you've taken around speaker launches and pulling some Nike away from that banner?

我想問一下關于冠軍重新定位的事情。鑑於重新定位產生了相當大的影響，您是否會對冠軍策略進行任何調整，特別是在三月份為我們概述的策略？另外，是否有一種方法可以量化您在揚聲器發布和將耐克從該橫幅上撤下所採取的行動所產生的影響？

Yes, I'll start. Thanks for the question on Champs. So as you recall, we talked about our sneaker growth map and then our new portfolio strategy. And Champs is very clearly positioned what we call the active athlete, which is over a $10 billion market opportunity here in North America alone. And then there's also very good adjacencies in what we call the quality seeker and the fashion forward expression.

是的，我要開始了。感謝您提出有關冠軍的問題。你還記得嗎，我們討論了我們的運動鞋增長地圖，然後是我們新的產品組合策略。 Champs 非常明確地定位了我們所說的活躍運動員，僅在北美就有超過 100 億美元的市場機會。此外，我們所說的品質追求者和時尚前衛表達之間也存在著非常好的聯繫。

And so that's where we pivoted and repositioned the Champs brand, which is a meaningfully different place than it has been in the past and also very differentiated from Foot Locker. The team is making very good progress on what we call the 3 consumer pillars: that's performance; sport style, which has led to apparel; and then sneaker essentials.

因此，這就是我們對 Champs 品牌進行調整和重新定位的地方，與過去相比，這是一個有意義的不同之處，也與 Foot Locker 截然不同。該團隊在我們所說的三大消費者支柱方面取得了非常好的進展：即性能；運動風格催生了服裝；然後是運動鞋必需品。

And in fact, we just got done resetting one of our core stores here and are very happy with how it's turning out. We've got another 20 that are planned for the quarter here. And we are starting to see some improved performance, and we're also getting very good vendor support, which is important as we think about '24.

事實上，我們剛剛完成了這裡一家核心商店的重置，並對結果非常滿意。我們還計劃在本季度推出另外 20 個項目。我們開始看到性能有所提高，而且我們還獲得了非常好的供應商支持，這在我們考慮 '24 時非常重要。

So we start to lap some of the difficult comps in terms of the Nike reset and some of the decisions we've taken, we expect that we'll see improved performance through the end of the year. And then obviously, we'll talk at a later date about our expectations for 2024.

因此，我們開始根據耐克的重置和我們做出的一些決定來進行一些困難的比較，我們預計到今年年底我們會看到性能的改善。顯然，我們稍後會討論我們對 2024 年的期望。

And just a follow-up on who that Champs customer will be once the banner is fully repositioned? Is the idea there to win new customers that weren't previously served by Foot Locker Inc. banner? Or is it more about segmenting serving your existing base?

以及一旦橫幅完全重新定位後，冠軍顧客將是誰的後續行動？這個想法是為了贏得以前沒有通過 Foot Locker Inc. 旗幟服務的新客戶嗎？或者更多的是針對現有基礎進行細分？

Yes. I think it's a combination of both. I think we see an opportunity for new customer acquisition. When we talk about some of the performance brands, ASICs, Brooks, Under Armour, I think those are brands that have arguably been underrepresented in our Foot Locker banner. Think about our Foot Locker share in Nike at 16% ex that, we only have an 8% share of the rest of the market.

是的。我認為這是兩者的結合。我認為我們看到了獲取新客戶的機會。當我們談論一些高性能品牌時，ASIC、Brooks、Under Armour，我認為這些品牌在我們的 Foot Locker 旗幟中可能沒有得到充分體現。想想我們的 Foot Locker 在 Nike 中的份額為 16%，除此之外，我們在其餘市場中只佔有 8% 的份額。

And so Champs is a really great opportunity to extend that vendor assortment with a real keen focus on performance and sports style again, led through the lens of apparel. So I think it is truly incremental. So it'll be some migration to consumers, but also the acquisition of new consumers along the way.

因此，Champs 確實是一個很好的機會，可以通過服裝的視角，再次真正熱衷於性能和運動風格，從而擴展供應商的品種。所以我認為這是真正的增量。因此，這將是一些消費者的遷移，但同時也會吸引新的消費者。

And our next question today comes from Kate McShane with Goldman Sachs.

今天我們的下一個問題來自高盛的凱特·麥克肖恩。

This is Brooke Roach filling in for Kate. How are you feeling about footwear channel inventory across the marketplace today? And as you think into the -- as you look into the back half of the year, what are you expecting for the competitive environment and for the magnitude of markdowns as you move through back-to-school and holiday?

這是布魯克·羅奇（Brooke Roach）接替凱特。您對當今市場上的鞋類渠道庫存有何看法？當你回顧今年下半年時，你對返校和假期期間的競爭環境和降價幅度有何期望？

Thank you for your question. I would say that what we're seeing is a couple of things. One is that our customer being somewhat under pressure in terms of household budget and being well discerning, price sensitive in an environment that is promotional. And we would expect that, that will continue as we go through the year.

謝謝你的問題。我想說的是，我們所看到的有幾件事。一是我們的客戶在家庭預算方面承受著一定的壓力，並且在促銷環境中具有敏銳的洞察力和對價格的敏感度。我們預計，這種情況將在今年持續下去。

It's a somewhat higher inventory -- elevated inventory. We're all competing for that share of wallet. So we would expect that, that promotional level will continue through the rest of the year.

這是一個稍高的庫存——庫存增加。我們都在爭奪那份錢包。因此，我們預計這種促銷水平將持續到今年剩餘時間。

And our next question today comes from Alex Straton with Morgan Stanley.

今天我們的下一個問題來自摩根士丹利的亞歷克斯·斯特拉頓。

Great. I wanted to clarify something on the Nike relationship that you said. So I think you said this was the second of 4 quarters in the Nike reset. But I think last quarter, if I recall correctly, you said that the vendor mix hadn't changed. So can you just clarify that for me? Maybe where did Nike penetration sit in the first quarter and second quarter versus last year? And then a follow-up on that is just how this impacts profitability or what the implications are there?

偉大的。我想澄清一下你所說的與耐克的關係。所以我想你說過這是耐克重置的四個季度中的第二個。但我認為上個季度，如果我沒記錯的話，您說過供應商組合沒有改變。那麼你能幫我澄清一下嗎？也許耐克第一季度和第二季度的滲透率與去年相比處於什麼位置？接下來是這如何影響盈利能力或者有什麼影響？

Yes. I'm not sure if can site the exact number. What I'll tell you is that we are certainly evolving. We're going through the reset year as we discussed. Our longer-term mix that we expect would be 48% of our business being other brands, and we ended this quarter at 36%, which is up from 31% a year ago. So that's plus 5 points. So we're making progress against that goal.

是的。我不確定是否可以找到確切的數字。我要告訴你的是，我們確實在不斷發展。正如我們所討論的，我們正在經歷重置年。我們預計，我們的長期組合將是我們業務的 48% 是其他品牌，本季度結束時這一比例為 36%，高於一年前的 31%。這樣就加了5分。所以我們正在朝著這個目標取得進展。

Got it. Okay. Maybe one follow-up just on the comp and how that kind of trended in the quarter. I think May was down low double digits, and it seems like the second quarter guide contemplated an acceleration. So can you just remind me why you thought that would happen, kind of what didn't come to fruition? And then maybe also what the June uptick was a result of?

知道了。好的。也許只是關於比較以及本季度的趨勢的後續行動。我認為五月份的跌幅為低兩位數，第二季度指南似乎考慮了加速。那麼你能提醒我為什麼你認為會發生這種情況，但沒有實現嗎？那麼六月份的上漲也許是由於什麼造成的呢？

Yes. This is Mike. So I think as we saw through the quarter, again, to your point, operating with May from a low double-digit perspective and exited the quarter at a low double digit with a little bit of upside in June, I think we saw a lot of volatility from a promotional standpoint throughout the quarter. And we had expected for more progression in the month of July in our original guidance, really tied to momentum expected around back-to-school and the ramp-up of that holiday.

是的。這是邁克。因此，我認為，當我們回顧本季度時，再次就您的觀點而言，從5 月份的低兩位數角度進行操作，並以低兩位數的價格退出本季度，並在6 月份有一點上行空間，我認為我們看到了很多從整個季度促銷的角度來看，波動性很大。在我們最初的指導中，我們預計 7 月份會取得更多進展，這實際上與返校期間的預期勢頭和假期的增加有關。

I think what we've seen here is that it's been a promotional environment. And as we contemplated our guidance for the back half of the year, we're acknowledging that things have continued relatively similar into the month of August. In August, our comps are trending down high single digits to date.

我認為我們在這裡看到的是這是一個促銷環境。當我們思考今年下半年的指導時，我們承認八月份的情況仍然相對相似。八月份，我們的比較迄今為止呈高個位數下降趨勢。

And that's really contemplated in the midpoint of the guidance that we provided. So again, our outlook is with our year-to-date trend. As we talk through the back half of the year, our downside scenario embeds further macro risk, really recognizing that our consumer is still under pressure. And that there are potential spending changes on the horizon with the resumption of student loans.

我們在提供的指南中確實考慮到了這一點。因此，我們的展望與今年迄今為止的趨勢一致。當我們談論今年下半年時，我們的下行情景蘊含著進一步的宏觀風險，真正認識到我們的消費者仍然面臨壓力。隨著學生貸款的恢復，支出可能會發生變化。

Our upside scenario from a guidance standpoint reflects some of the early wins and building momentum we are seeing within our strategic initiatives.

從指導的角度來看，我們的上行前景反映了我們在戰略舉措中看到的一些早期勝利和積聚勢頭。

And our next question today comes from Jonathan Komp with Baird.

今天我們的下一個問題來自 Jonathan Komp 和 Baird。

If I could just follow up -- I wanted to follow up on the last comments there, Mike, just to work clear. Are you still trending down low double digits or high single digits? And does the guidance require any improvement from the July-August levels?

如果我可以跟進的話——邁克，我想跟進最後的評論，只是為了工作清楚。您的業​​績是否仍呈下降兩位數或高個位數的趨勢？該指導意見是否要求比 7 月至 8 月的水平有所改善？

Jonathan, so you were breaking up, but to make sure I heard you correctly, you were asking about the August trend. So our August comp trend is trending down high single digits, so a little bit better than where we exited the quarter within the month of July. And that high -- down high single digits is really in line with our year-to-date performance, which again is then the midpoint of our back half guidance.

喬納森，所以你們要分手了，但為了確保我沒聽錯，你在問八月的趨勢。因此，我們 8 月份的比較趨勢呈高個位數下降趨勢，比我們在 7 月份退出本季度的情況要好一些。這個高個位數的下降確實與我們今年迄今為止的表現相符，這又是我們後半段指導的中點。

Okay. That's helpful. And hopefully, you can hear me okay. And then when we think about the comments around third and fourth quarter earnings being relatively similar, it doesn't look like traditionally, the normal pattern looks like fourth quarter typically is much higher in terms of the earnings of the profit dollars. Could you maybe just parse out a little further if there are some factors unique to the fourth quarter that we should expect?

好的。這很有幫助。希望你能聽到我的聲音。然後，當我們想到有關第三季度和第四季度收益的評論相對相似時，它看起來並不像傳統上那樣，正常模式看起來第四季度的利潤美元收益通常要高得多。如果我們應該預期第四季度有一些獨特的因素，您能否進一步分析一下？

Yes. I think as we think through the Q3, Q4 split, again, we're highlighting a relatively even split in terms of EPS, absent of the 53rd week, which we've quantified as about $0.15. I think what we're acknowledging is our guidance range with the potential that 4Q could be a little tougher than 3Q, given the compares.

是的。我認為，當我們考慮第三季度和第四季度的分割時，我們再次強調了每股收益方面相對均勻的分割，不包括第 53 週，我們將其量化為約 0.15 美元。我認為我們承認的是我們的指導範圍，考慮到比較，第四季度可能會比第三季度更艱難。

But again -- and then with Q3 having some additional margin pressure year-over-year. So a little bit of those markdowns weighted more heavily towards Q3. But again, as of right now, they're relatively even split by (inaudible).

但同樣，第三季度同比也面臨一些額外的利潤壓力。因此，其中一些降價對第三季度的影響更大。但同樣，截至目前，它們的分佈相對均勻（聽不清）。

And our next question today comes from Lorraine Hutchinson with BofA.

今天我們的下一個問題來自美國銀行的洛林·哈欽森 (Lorraine Hutchinson)。

How is your customer reacting to launches and limited product drops? Are those still driving outsized demand? Or is it really a focus on promotion that gets the core customer buying at this point?

您的客戶對產品發布和有限產品投放有何反應？這些仍然在推動巨大的需求嗎？或者說，此時真正吸引核心客戶購買的還是促銷活動嗎？

Yes. We're still seeing very good sell-through on launch type products. Whether that's release date or pure launch, retro or innovation, I think the consumer is responding very favorably, and the sell-throughs continue to be very good. I'd just remind you that 2Q was our most challenging launch quarter in the fiscal year.

是的。我們仍然看到發布型產品的銷售情況非常好。無論是發布日期還是純粹的發布、復古還是創新，我認為消費者的反應都非常積極，而且銷售量仍然非常好。我只是提醒您，第二季度是我們本財年最具挑戰性的發布季度。

So Q3, it'll moderate and be somewhere between Q1 and Q2. And in fourth quarter, it'll actually be the best relative comp comparison from a launch standpoint. So that 2 factors into our revised guidance. On the base business, sort of nonlaunch, we are seeing that promotional pressure is impacting sell-throughs, and it's been very competitive.

因此，第三季度，它將放緩，介於第一季度和第二季度之間。從發布的角度來看，第四季度實際上將是最好的相對比較。因此，我們修訂後的指導中有兩個因素。在基礎業務方面，我們發現促銷壓力正在影響銷售量，而且競爭非常激烈。

We've seen heightened promotions from both brand ETC as well as retail competitors. And that went across the U.S. marketplace and also key markets into Europe, which again put pressure on comps and also sell-through and conversions throughout our store base.

我們看到品牌 ETC 和零售競爭對手都加大了促銷力度。這遍及美國市場以及歐洲的主要市場，這再次給我們整個商店的比較以及銷售和轉化帶來了壓力。

And our next question comes from Janine Stichter with BTIG.

我們的下一個問題來自 BTIG 的 Janine Stichter。

Welcome Mike. I wanted to ask about the inventory. I think you're still planning it down slightly, which would be higher than where sales are trending. Would your expectation be to be completely clean by year-end? And how should we think about based on where we are now the potential for promotions to linger into the first half of next year?

歡迎邁克。我想問一下庫存情況。我認為您仍在計劃稍微下調，這將高於銷售趨勢。您的期望是在年底前完全清潔嗎？基於目前的情況，我們應該如何考慮明年上半年的促銷潛力？

And then I also wanted to ask about the expense base just based on your initial assessment, is there any room for additional cuts versus what was given at the Investor Day in March?

然後我還想問一下，根據您的初步評估，費用基礎是否與三月份投資者日的費用相比還有進一步削減的空間？

So from an inventory standpoint, again, we're pleased with the progress that we made in the quarter here to be up 11%. We are calling out that we will end the year flat to slightly down. We have included within our guidance the necessary promotional levels that we believe will be needed to achieve that going into the back half of the year.

因此，從庫存的角度來看，我們再次對本季度取得的 11% 增長感到滿意。我們呼籲，今年年底我們將持平或略有下降。我們已將必要的促銷水平納入我們的指導中，我們認為這是在今年下半年實現這一目標所必需的。

I think from a cost perspective, acknowledging we're operating below our expectations in '23. As you can imagine, we've been very tight with our discretionary spending. I could really commend the team for being agile in that front. I do think we'll obviously -- we have a culture that is very disciplined on expense management, and we will continue to operate in that manner.

我認為從成本角度來看，承認我們 23 年的運營低於預期。正如你可以想像的那樣，我們對可自由支配的支出一直非常緊張。我真的可以讚揚該團隊在這方面的敏捷性。我確實認為我們顯然會——我們有一種在費用管理方面非常嚴格的文化，我們將繼續以這種方式運作。

And then from an overall cost perspective, again, we quantified $35 million of savings within the quarter across margin and SG&A tied to our cost initiatives. So again, we're on track for the $350 million tied to the Lace Up plan as well.

然後，從整體成本的角度來看，我們再次量化了本季度與我們的成本計劃相關的利潤和 SG&A 節省了 3500 萬美元。因此，我們也有望獲得與 Lace Up 計劃相關的 3.5 億美元資金。

Yes. And I'll just add, going back to our first quarter call, when we saw some of the slowdown in April begin in the base business, we immediately made some order book adjustments to our Q3 and our holiday order book. So that did not stay static. And as the businesses continue to sort of slow down and miss our internal expectations, we continue to work back with our vendor partners to make adjustments, both to the order book as well as our receipt flow for the back half of '23.

是的。我想補充一點，回到我們第一季度的電話會議，當我們看到四月份基礎業務開始出現一些放緩時，我們立即對第三季度和假期訂單進行了一些訂單調整。所以這並沒有保持靜止。隨著業務繼續放緩並達不到我們的內部預期，我們繼續與供應商合作夥伴合作，對訂單簿以及 23 年下半年的收貨流程進行調整。

And our next question today comes from Joe Feldman with Telsey Advisory Group.

今天我們的下一個問題來自特爾西諮詢小組的喬·費爾德曼。

I wanted to get a quick thought on why -- if you could share more color on back-to-school and what you're seeing there? It sounds like the August-to-date trend has improved a little from July. But we're hearing back-to-school is off to a decent start from a lot of other retailers out there. And so I was just wondering what you guys are seeing and what you're hearing from your customer with some more thought on that.

我想快速思考一下為什麼——您是否可以分享更多有關返校的色彩以及您在那裡看到的內容？聽起來八月至今的趨勢比七月略有改善。但我們聽說許多其他零售商的返校季已經有了一個良好的開端。所以我只是想知道你們看到了什麼以及從客戶那裡聽到了什麼，並對此進行了更多思考。

Yes. I would say that [year] booking at of trends in July and August, a little bit weaker than we would have hoped in terms of back-to-school. We promoted more heavily initially to compete for our share of the customers' wallet to manage inventory levels. I would say back-to-school is a tale of many different kinds of products and categories that consumers participate in.

是的。我想說的是，7 月和 8 月的預訂趨勢比我們預期的返校季要弱一些。我們最初加大力度促銷，以爭奪客戶的錢包份額，以管理庫存水平。我想說，返校季是消費者參與多種不同產品和類別的故事。

So we know sneakers are a part of that equation as are things like school supplies and sports equipment, right? So we feel like we're set up well in terms of having the products that our customers want for back-to-school, but it's a little bit softer for us. And we would add that pressure on our customer skews a little bit more towards pressure on discretionary spend, so people are being a little more price sensitive and a little more choiceful on their selection.

所以我們知道運動鞋是這個方程式的一部分，就像學校用品和運動器材一樣，對嗎？因此，我們覺得我們在提供客戶想要的返校產品方面已經做好了準備，但對我們來說有點軟。我們還要補充一點，客戶面臨的壓力更多地偏向於可自由支配支出的壓力，因此人們對價格更加敏感，在選擇上也更加有選擇性。

And our next question today comes from Adrienne Yih with Barclays.

今天我們的下一個問題來自巴克萊銀行的 Adrienne Yih。

I'm kind of going to go back to the quarterly comments on the merchandise margin. I believe it was 300 basis points on higher promos and elevated shrink and then there was some offset to that. So within that 300 basis points, do you happen to take a write-down or a reserve on any aging product?

我想回到關於商品利潤的季度評論。我相信這是 300 個基點，因為較高的促銷和較高的收縮，然後有一些抵消。那麼，在這 300 個基點內，您是否會對任何老化產品進行減記或準備金？

Anything seasonal of that nature? And then with regard to shrink, just kind of tactically, how do you do that? Do you do it once a year in July? Or do you do it once a year in January? How should we think about the accrual of that going into the next couple of quarters?

有什麼季節性的東西嗎？然後關於收縮，只是戰術上的，你如何做到這一點？你每年七月做一次嗎？還是每年一月做一次？我們應該如何考慮接下來幾個季度的應計費用？

So thanks for the question. I think from a -- again, from a margin standpoint, the pressure within merch margin was the elevated promotion. We look at aged product on a regular basis, and that's always incorporated into our results. But the vast majority of what we did in the quarter and what we're doing in Q3 and then ultimately in Q4 is ensuring that we have a clean level of inventory to best operate through holiday and then best transition into 2024. So it's incorporated within our results.

謝謝你的提問。我認為，再次從利潤率的角度來看，商品利潤率的壓力來自於促銷活動的提高。我們定期檢查老化產品，並將其納入我們的結果中。但我們在本季度所做的絕大多數工作以及我們在第三季度和最終第四季度所做的工作是確保我們擁有乾淨的庫存水平，以便在假期期間最好地運營，然後最好地過渡到2024 年。因此，它已納入我們的結果。

Great. And then the shrink, if you will?

偉大的。然後是心理醫生，如果你願意的話？

And from a shrink standpoint, it's from an order of magnitude in terms of our year-to-date performance within margin and then what's embedded within our guidance. The largest driver has been the promotions. The second biggest driver has been the deleverage we've seen within occupancy costs, which are embedded within our margin.

從收縮的角度來看，這是我們今年迄今在利潤率內的表現以及我們指導中所包含的內容的一個數量級。最大的推動因素是促銷活動。第二大驅動因素是我們在入住成本中看到的去槓桿化，這已包含在我們的利潤中。

And then the third shrink is a pressure incorporated into our back half guidance is expected similar shrink levels to what we've had year-to-date. So the increase in the guidance is really around the promotional activity.

第三次收縮是納入我們後半指導的壓力，預計收縮水平與我們今年迄今為止的水平相似。所以引導的增加實際上是圍繞促銷活動進行的。

And then my very last one is freight recapture. Can you comment on that? And are you seeing that get better? If you go into the back half, is that plan to get better in the back half?

我的最後一項是貨物回收。你能對此發表評論嗎？您看到情況變得更好了嗎？如果你進入後半區，那計劃會在後半區變得更好嗎？

I apologize, you broke up. I heard recapture, could you...

對不起，你們分手了。我聽說重獲新生，你能...

Freight and/or supply chain, so mark on or the container like the shipping portion of freight, any benefit from kind of the recapture of that from last year?

貨運和/或供應鏈，因此在集裝箱上進行標記，例如貨運的運輸部分，從去年的收回中是否有任何好處？

I mean I think the easiest way to think about it is in the back half of our guidance, the biggest change, again, is to the promotional markdowns that we're incorporating to really build inventory where it needs to be.

我的意思是，我認為最簡單的思考方式是在我們指導的後半部分，最大的變化再次是我們正在整合的促銷降價，以真正在需要的地方建立庫存。

And our last question today comes from Paul Lejuez with Citi.

今天我們的最後一個問題來自花旗銀行的 Paul Lejuez。

Can you give more detail on where within the assortment of that nonlaunch product? Did you need to be promotional more so than you'd expected? And can you talk about your ability to get vendor allowances from your key partners? And then just second, curious what happens when you close stores. I think you closed over 100 thus far. And curious what kind of sales transfer you see the nearby stores or online.

您能否詳細說明該未推出產品的分類情況？您是否需要比預期更多的促銷活動？您能談談您從主要合作夥伴那裡獲得供應商津貼的能力嗎？其次，好奇當你關閉商店時會發生什麼。我想到目前為止你已經關閉了 100 多個。並好奇您在附近的商店或網上看到了什麼樣的銷售轉移。

Yes. So to the first question -- actually, I'll start at the back end. So the majority of the store closures in 2Q really related to our Sidestep wind down. And so that was highly concentrated into the German marketplace. And so Foot Locker would have benefited the most from that. And we also were very intentional about a number of store conversions, which we actually rebranded to Foot Locker and then moved some of the better inventory over.

是的。對於第一個問題——實際上，我將從後端開始。因此，第二季度大部分商店的關閉確實與我們的 Sidestep 關閉有關。因此，該產品高度集中在德國市場。因此 Foot Locker 將從中受益最多。我們還非常有意識地對一些商店進行了改造，我們實際上將其重新命名為 Foot Locker，然後將一些更好的庫存轉移過來。

So that's how we sort of mitigated the sales hit to the Sidestep wind down specifically in 2Q. As it relates to markdowns and where we're seeing some of the softness, certainly, lifestyle running as a sort of category has been the softest sort of spot in the footwear category. And that's the trend that's continued out of the first quarter and into the second quarter and something that we're going to continue to work through as we think about inventory management into the fall season.

這就是我們如何減輕 Sidestep 銷量下降帶來的影響，特別是在第二季度。由於它與降價以及我們看到的一些軟性有關，當然，生活方式跑步作為一種類別一直是鞋類類別中最軟的地方。這種趨勢從第一季度一直持續到第二季度，當我們考慮秋季的庫存管理時，我們將繼續解決這一問題。

And so I'd say a large part of the markdown allowance has been geared towards liquidating some of those franchises. We continue to work with our brand partners on vendor allowance, on RTVs and also reflowing our order book in the back half. So I think there's been good partnership and recognition that we all want to end the year as cleanly as possible and sort of reset the inventory, particularly in North America for 2024.

因此，我想說，降價補貼的很大一部分用於清算其中一些特許經營權。我們繼續與我們的品牌合作夥伴就供應商補貼、RTV 以及後半段的訂單進行回流合作。因此，我認為我們已經建立了良好的合作夥伴關係並認識到，我們都希望盡可能乾淨地結束這一年，並重新調整庫存，特別是 2024 年在北美。

Okay. So let me wrap this up. I just want to thank everybody for joining us today. And I want to reemphasize that while this reset year has been tougher than we expected, I am really excited about the traction we're seeing with our Lace Up plan. And importantly, our entire team is energized and committed to the transformation that's taking place in the business and aligned with our strategies.

好的。讓我總結一下。我只想感謝大家今天加入我們。我想再次強調，雖然今年的重置比我們預期的要艱難，但我對我們的 Lace Up 計劃所看到的吸引力感到非常興奮。重要的是，我們的整個團隊充滿活力，致力於業務中正在發生的變革，並與我們的戰略保持一致。

I also just want to close by thanking our over 45,000 employees that are working hard to help us implement the strategy and the plan and get the stores on the website and DCs continue to be ready through our back-to-school in the busy holiday season, like only our stripers can. So we look forward to updating you on our progress next quarter. Thank you, and goodbye.

最後，我還要感謝我們超過 45,000 名員工，他們正在努力幫助我們實施戰略和計劃，讓網站上的商店和配送中心在繁忙的假期期間繼續為返校做好準備。 ，就像只有我們的脫衣舞者才能做到的那樣。因此，我們期待在下個季度向您通報我們的最新進展。謝謝，再見。

Thank you. This concludes today's conference. We thank you for participating. You may now disconnect, and have a wonderful day.

謝謝。今天的會議到此結束。我們感謝您的參與。您現在可以斷開連接，並度過美好的一天。