1-800-Flowers.Com Inc (FLWS) 2025 Q2 法說會逐字稿

Good day and welcome to the 1-800-Flowers.Com Inc Fiscal Year 2025 Second Quarter conference call. (Operator instructions)

大家好，歡迎參加 1-800-Flowers.Com Inc 2025 財年第二季電話會議。（操作員指令）

I would now like to turn the conference over to Andy Milevoj, Senior Vice President of Investor Relations.

現在，我想將會議交給投資者關係高級副總裁 Andy Milevoj。

Good morning and welcome to our fiscal 2025 second quarter earnings call. Joining us today are Jim McCann, Chairman and CEO, Tom Hartnett, President and James Landrock, CFO. Before we begin, I'd like to remind you that some of the statements we make on today's call are covered by the safe harbor disclaimer contained in our press release and public documents. During this call, we will make forward-looking statements with predictions, projections and other statements about future events.

早安，歡迎參加我們的 2025 財年第二季財報電話會議。今天與我們一起出席的有董事長兼執行長 Jim McCann、總裁 Tom Hartnett 和財務長 James Landrock。在我們開始之前，我想提醒您，我們在今天的電話會議上所做的一些聲明屬於我們新聞稿和公開文件中的安全港免責聲明的範疇。在本次電話會議中，我們將做出前瞻性陳述，包括對未來事件的預測、預期和其他陳述。

These statements are based on current expectations and assumptions that are subject to risks and uncertainties including those contained in our press release and public filings with the securities and exchange commission. The company disclaims any obligation to update any of the forward-looking statements that may be made or discussed during this call.

這些聲明是基於目前的預期和假設，這些預期和假設受風險和不確定性的影響，包括我們新聞稿和向美國證券交易委員會提交的公開文件中包含的風險和不確定性。本公司不承擔更新本次電話會議中可能做出或討論的任何前瞻性陳述的義務。

Additionally, we will discuss certain supplemental financial measures that were not prepared in accordance with GAAP reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the tables of our earnings release and now I'll turn the call over to Jim.

此外，我們將討論某些未按照 GAAP 編制的補充財務指標，這些非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整可以在我們的收益報告表格中找到，現在我將把電話轉給吉姆。

Thanks Andy and good morning everyone this morning. I'll begin with a brief overview of our second quarter performance and then I'll turn it over to James and Tom who will provide a context for the results and look ahead, our second quarter revenue declined 5.7% showing year over year improvement, but not at all at the pace that we have been anticipating. There were several factors that contributed to our performance. First, we experienced softer than anticipated consumer demand and we saw business businesses reduce their corporate gifting orders this holiday season.

謝謝安迪，大家早安。我將首先簡要概述我們第二季度的業績，然後我將把它交給詹姆斯和湯姆，他們將提供業績背景並展望未來，我們的第二季度收入下降 5.7%，同比有所改善，但完全沒有達到我們預期的速度。有幾個因素影響了我們的表現。首先，我們經歷了比預期更疲軟的消費者需求，我們發現企業在這個假期季節減少了企業禮品訂單。

Second, we encountered challenges with the implementation of a new Harry and David Order management system or what we call OMS that escalated during the peak of the holiday season, impacting revenue and earnings for Harry and David and for all the brands. This morning, James and Tom will share more details behind some of these factors and how we are responding to them Additionally, we'll discuss our view of the ever changing post COVID world of consumer behavior and how we engage with our customers. And now I'll turn the call over to James.

其次，我們在實施新的 Harry and David 訂單管理系統（我們稱之為 OMS）時遇到了挑戰，該系統在節日高峰期不斷升級，影響了 Harry and David 以及所有品牌的收入和收益。今天上午，詹姆斯和湯姆將分享其中一些因素背後的更多細節以及我們如何應對這些因素，此外，我們還將討論我們對不斷變化的後 COVID 消費者行為世界的看法以及我們如何與客戶互動。現在我將電話轉給詹姆斯。

Thanks Jim and good morning, everyone. This morning, I will walk you through our second quarter performance and discuss the items that contributed to our performance. In further detail, our consolidated second quarter revenue declined 5.7% with several factors contributing to this performance. First, we experienced lower consumer demand in a highly competitive and promotional environment combined with changes in the online marketing environment that a negative impact on our marketing efficiency.

謝謝吉姆，大家早安。今天上午，我將向大家介紹我們第二季的業績，並討論對我們業績有所貢獻的因素。具體來說，我們的第二季綜合收入下降了 5.7%，造成這種狀況的因素有很多。首先，在激烈的競爭和促銷環境中，我們經歷了消費者需求的下降，再加上網路行銷環境的變化，這對我們的行銷效率產生了負面影響。

As a result, our increased marketing spend did not generate the results we anticipated in particular free and lower cost marketing channels declined or cost more than anticipated. Second, our corporate business partners became more cautious with their spending leading to decreases in a OVS items per order and total number of orders placed in total. Our AOV declined 1.2% for the quarter and third, we experienced challenges with the new Harry and David S implementation which escalated during the surge of holiday orders.

結果，我們增加的行銷支出並沒有產生預期的結果，特別是免費和低成本的行銷管道減少或成本高於預期。其次，我們的企業業務夥伴在支出方面變得更加謹慎，導致每份訂單的 OVS 商品數量和總訂單數量減少。我們的 AOV 本季度下降了 1.2%，第三季度，我們在實施新的 Harry 和 David S 計劃時遇到了挑戰，這種挑戰在假期訂單激增期間進一步加劇。

Our ecommerce business declined 8.3% for the quarter. We estimate the RMS related issues reduced Q2 e-commerce revenue by approximately $20 million. These trends were slightly offset by an increase in our wholesale gift baskets business adjusting for the $20 million impact of lost revenue. Q2 e-commerce revenue would have declined 5.6% and total revenue would have declined 3.2% before I move on to gross margin. I did want to take a moment to discuss the RMS implementation that affected our performance as the business began to scale significantly in December, the new Harry and David Order management system that were recently implemented present the challenges with certain customer orders that were more complex during the peak of the holiday season.

我們的電子商務業務本季下降了 8.3%。我們估計 RMS 相關問題導致第二季電子商務收入減少約 2,000 萬美元。這些趨勢被我們的批發禮品籃業務的成長稍微抵消了，以適應 2000 萬美元的收入損失的影響。在我談到毛利率之前，第二季電子商務營收將下降 5.6%，總營收將下降 3.2%。我確實想花點時間討論一下影響我們業績的 RMS 實施情況，因為業務在 12 月開始大幅擴大，最近實施的新 Harry 和 David 訂單管理系統給假日高峰期某些更為複雜的客戶訂單帶來了挑戰。

These orders created bottlenecks in the system that hindered our ability to process orders in a timely manner and other cases caused order cancellations. We were able to resolve many of these problems manually but it caused certain order cancellations and additional expenses to correct orders and to make it right for our customers. Although the implementation issues we face were challenging, it's important to recognize that we successfully delivered over $7 million orders this holiday season an enterprise level.

這些訂單造成了系統瓶頸，妨礙了我們及時處理訂單的能力，還有一些情況導致訂單取消。我們能夠手動解決許多這些問題，但這會導致某些訂單取消，並且需要花費額外的費用來糾正訂單並為客戶提供正確的服務。儘管我們面臨的實施問題具有挑戰性，但重要的是要認識到，我們在這個假期成功地在企業層面交付了超過 700 萬美元的訂單。

While the RMS implementation primarily impacted our Harry and David business, we estimate it also had some spillover effect to our other brands given our centralized customer care function as Tom will discuss further in just a moment. We are in the process of resolving the new system issues now turn to gross margins.

雖然 RMS 的實施主要影響了我們的 Harry 和 David 業務，但考慮到我們的集中客戶服務功能，我們估計它也會對我們的其他品牌產生一些溢出效應，Tom 稍後將進一步討論。我們目前正在解決新系統問題，現在轉向毛利率。

Our second quarter gross margin was 43.3% flat. With the prior year, the second quarter was highly promotional as consumers continued to look for and respond to promotional offers, our gross margin was also affected by the incremental costs associated with the R MS implementation challenges including expediting shipping fees that we estimate impacted gross profit by approximately 20 basis points, excluding the RMS related costs, gross margin would have been 43.5% adjusted operating expenses declined by $2.9 million to $239 million. As compared with the prior year period continuing to benefit from our work smarter initiatives.

我們第二季的毛利率持平於43.3%。與去年同期相比，第二季度的促銷活動非常活躍，因為消費者繼續尋找和響應促銷優惠，我們的毛利率也受到了與 R MS 實施挑戰相關的增量成本的影響，包括加快運輸費用，我們估計這影響了毛利潤約 20 個基點，不包括 RMS 相關成本，毛利率將為 43.5%，調整後的營業費用下降至 290 萬美元。與去年同期相比，我們持續受益於更聰明的工作措施。

We believe that we're only beginning to tap into the potential to enhance our planned operational efficiencies and there is much more, we can achieve the meticulous cost management and strategic investments in technology. We aim to streamline processes and reduce expenses without compromising the quality of our offerings while improving the customer experience.

我們相信，我們才剛開始挖掘提高計畫營運效率的潛力，而且，我們還可以實現細緻的成本管理和對技術的策略性投資。我們的目標是簡化流程、降低開支，同時不影響產品品質，並改善客戶體驗。

In addition to the impact on revenue, we estimate that the incremental costs associated with the RMS challenges included expedited shipping fees and higher customer care costs impact the Q2 EBITDA by approximately $4.8 million.

除了對收入的影響之外，我們估計與 RMS 挑戰相關的增量成本包括加急運輸費和更高的客戶服務成本，這將對第二季的 EBITDA 造成約 480 萬美元的影響。

We also incurred expenses of approximately $1.5 million consisting primarily of redundancy costs as we migrated to our new customer care platform altogether. This impacted Q2 results by approximately $6.3 million. Taking this into account. Q2 adjusted EBITA was $116.3 million as compared with $130.1 million in the prior year period. Just to be clear, our adjusted EBITDA does not reflect the approximately $20 million of estimated lost revenue during the quarter, which equates to lost EBITDA of approximately $8 million.

我們還產生了約 150 萬美元的費用，主要包括我們遷移到新客戶服務平台時的冗餘成本。這對第二季業績影響了約 630 萬美元。考慮到這一點。第二季調整後的 EBITA 為 1.163 億美元，去年同期為 1.301 億美元。需要明確的是，我們的調整後 EBITDA 並未反映本季預計約 2,000 萬美元的營收損失，相當於約 800 萬美元的 EBITDA 損失。

Over the past few years, we have discussed our gross margin returning to its historical average and we are pleased that postpandemic, it has recovered much of the way to our long term average in the low 40% range going forward. As you will hear from Tom, we are elevating our focus on all aspects of our sales and marketing spend.

過去幾年，我們一直在討論讓毛利率恢復到歷史平均水平，我們很高興看到，疫情過後，毛利率已基本恢復到長期平均水平，預計未來將在 40% 左右。正如湯姆所說，我們正在加強對銷售和行銷支出各個方面的關注。

We believe there is opportunity for further efficiency gains as we adapt to changing technology and changing consumer preferences for engagement with e-commerce platforms. And now let's turn to our balance sheet.

我們相信，隨著我們適應不斷變化的技術和消費者對電子商務平台參與偏好的變化，我們有機會進一步提高效率。現在我們來看看資產負債表。

Net cash was $87 million compared with $117 million at the end of last year's second quarter, our cash balance was $247 million at the end of the second quarter, inventory declined to $157 million compared with inventory of $161 million at the end of last year's second quarter.

淨現金為 8,700 萬美元，而去年第二季末為 1.17 億美元，第二季末的現金餘額為 2.47 億美元，庫存下降至 1.57 億美元，而去年第二季末的庫存為 1.61 億美元。

In terms of our debt, we had $160 million in term debt and no borrowings under our revolving credit facility as compared with $195 million a year ago. At the end of the quarter, we made a $25 million prepayment to our term loan and amended our credit agreement guiding guidance for fiscal 2025 as a result of our Q2 performance we are updating our fiscal 2025 outlook.

就我們的債務而言，我們有 1.6 億美元的定期債務，並且沒有循環信貸額度下的借款，而一年前為 1.95 億美元。在本季末，我們預付了 2,500 萬美元的定期貸款，並修改了 2025 財年的信用協議指導方針，根據我們第二季的業績，我們正在更新 2025 財年的展望。

We now expect full fiscal year revenue to decline in the mid single digits adjusted EBITA is expected to be in the range of $65 million to $75 million. And free cash flow is expected to be in the range of $25 million to $35 million. We are disappointed that our Q2 performance did not meet our expectations.

我們現在預計整個財年收入將下降中等個位數，調整後的 EBITA 預計在 6,500 萬美元至 7,500 萬美元之間。預計自由現金流在 2,500 萬至 3,500 萬美元之間。我們很失望，第二季的業績沒有達到我們的預期。

Some of the challenges were self inflicted and as we resolve these challenges, we remain optimistic about our future performance and the initiatives that we are executing on. We are confident that the strategies and the foundational steps we have implemented will significantly improve our trends and create substantial shareholder value. And now I will turn it over to Tom.

有些挑戰是我們自己造成的，當我們解決這些挑戰時，我們對我們的未來表現和正在執行的舉措仍然持樂觀態度。我們相信，我們實施的策略和基礎步驟將顯著改善我們的趨勢並創造可觀的股東價值。現在我將把話題交給湯姆。

Thanks James and good morning, everyone. As James outlined the second quarter presented us with several unexpected challenges. Changes in online marketing trends impacted our performance and businesses reduced their corporate gifting orders this holiday season, both in terms of AOV and total orders placed.

謝謝詹姆斯，大家早安。正如詹姆斯所概述的，第二季度給我們帶來了一些意想不到的挑戰。網路行銷趨勢的變化影響了我們的業績，無論是 AOV 還是總訂單量，企業在這個假期都減少了公司禮品訂單。

Furthermore, our results were pressured by challenges that escalated with our new Harry and David S implementation. As with any new system implementation, it's difficult to anticipate every issue that might arise. We felt the system was prepared for the holiday rush. The OMES implementation presented mounting challenges during the peak of the holiday season.

此外，隨著我們實施新的 Harry 和 David S 方案，挑戰不斷升級，這也給我們的業績帶來了壓力。與任何新系統的實施一樣，很難預料到可能出現的每一個問題。我們覺得該系統已經為假日高峰做好了準備。在節慶高峰期，OMES 的實施面臨越來越大的挑戰。

The order issues were directly related to Harry and David orders and in particular more complex orders that needed to be manually corrected, such as certain product bundles, wine gifts and club orders. It is important to highlight that many of the system challenges were exacerbated due to the significant surge in demand that we experienced during the holiday season.

訂單問題與 Harry 和 David 的訂單直接相關，特別是需要手動更正的更複雜的訂單，例如某些產品捆綁、葡萄酒禮品和俱樂部訂單。值得強調的是，許多系統挑戰因假期期間需求大幅增加而加劇。

We have resolved many of the issues and prioritized the remaining ones which we expect to correct in short order. These challenges further reinforce our conviction that in addition to our work smarter and relationship innovation initiatives which have improved our company, we need to fundamentally review all aspects of our marketing and sales strategy.

我們已經解決了許多問題，並優先處理剩餘問題，希望很快就能解決。這些挑戰進一步堅定了我們的信念：除了我們的工作更加智慧和關係創新舉措已經改善了我們的公司之外，我們還需要從根本上審查我們的行銷和銷售策略的各個方面。

We must accelerate our evolution to ensure our platform is both highly effective and efficient in supporting our customers' gift giving needs. We will accelerate our work smarter initiatives to cut cost and in turn increase investment in our growth oriented relationship innovation initiatives and marketing strategies.

我們必須加速發展，以確保我們的平台能夠有效率地支援客戶的送禮需求。我們將加速我們的工作智慧計畫以削減成本，進而增加對以成長為導向的關係創新計畫和行銷策略的投資。

As we focus on expanding our customer base, we see significant opportunities to leverage new technology to enhance engagement and build deeper relationships with our customers. These initiatives are designed to inspire our customers to help them connect with the important people in their lives. They are also designed to give them more and better ways to interact with us.

當我們專注於擴大客戶群時，我們看到了利用新技術來增強參與度並與客戶建立更深層關係的重大機會。這些措施旨在激勵我們的客戶，幫助他們與生活中重要的人建立聯繫。它們的設計目的還在於為它們提供更多更好的與我們互動的方式。

Our relationship innovation initiatives are in the process of transforming our organization into a comprehensive celebratory ecosystem. We are continuing our evolution from a transactional company and one that is experiential and personalized, focusing on enhancing customer engagement and satisfaction.

我們的關係創新舉措正在將我們的組織轉變為一個綜合的慶祝生態系統。我們將繼續從交易型公司轉向體驗式和個人化公司轉變，專注於提高客戶參與度和滿意度。

This shift reflects a growing expectation for seamless enjoyable shopping experiences that integrate advanced technologies to deliver tailored content and recommendations based on individual consumer behavior. We are confident that our efforts will enhance our customer experience and yield better results.

這種轉變反映出人們對無縫愉快的購物體驗日益增長的期望，這種體驗融合了先進技術，可根據個人消費者行為提供客製化的內容和建議。我們相信，我們的努力將提升客戶體驗並取得更好的結果。

Now I'll turn the call back to Jim for his closing comments before we open it up for Q&A.

現在，在我們開始問答環節之前，我將把電話轉回給吉姆，請他發表最後評論。

Thanks Tom. As we reflect on the past 18 months, our company has made progress in our relationship, innovation initiatives that are focused on strengthening our relationships, enhancing our platform and offering a wider range of gift giving options. But we also recognize the need to move faster and be more aggressive in certain areas including our marketing and sales strategy.

謝謝湯姆。回顧過去的 18 個月，我們公司在關係、創新舉措方面取得了進展，這些舉措致力於加強我們的關係、增強我們的平台並提供更廣泛的禮品選擇。但我們也意​​識到，我們需要在某些領域採取更快、更積極的行動，包括我們的行銷和銷售策略。

We must respond quicker and provide better value for our customers that have curtailed their spending the most in the current macro environment, we must become more effective with our advertising spend and invest more in marketing until we can rely less on external channels and more on our existing customer base. AI can significantly help us here. It will provide us with opportunity to accelerate our personalization efforts and present customers with content that is specific and appropriate for the sentiments that they are expressing our robust customer data set will enable us to deliver highly personalized marketing experiences, ensuring that we are not only attracting new customers but also nurturing the existing relationships.

我們必須做出更快的反應，為在當前宏觀環境下支出削減最多的客戶提供更好的價值，我們必須更有效地利用廣告支出，並在行銷上投入更多，直到我們能夠減少對外部管道的依賴，更多地依賴現有的客戶群。人工智慧可以在這裡為我們帶來很大的幫助。它將為我們提供機會來加速我們的個人化努力，並向客戶提供具體的、適合他們所表達的情緒的內容，我們強大的客戶資料集將使我們能夠提供高度個人化的行銷體驗，確保我們不僅吸引新客戶，而且還培養現有的關係。

Leveraging these innovative tools presents an unparalleled opportunity to better serve our customers and forge even deeper, more meaningful relationships with them. The future holds incredible promise for us and I'm thrilled about the possibilities that lie immediately ahead.

利用這些創新工具為我們提供了無與倫比的機會，可以更好地服務我們的客戶，並與他們建立更深、更有意義的關係。未來對我們來說充滿著無限的希望，我對即將出現的可能性感到興奮不已。

Now we look forward to keeping you appraised on our progress. And now I'll ask the operator to restate the Q&A instructions operator.

現在我們期待向您通報我們的進展。現在我請接線員重申問答指示。

We will now begin the question and answer session to ask a question. (Operator instructions)

我們現在開始問答環節來問一個問題。（操作員指令）

The first question today comes from Anthony Lebiedzinski, Sidoti & Company.

今天的第一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

Good morning everyone. Thank you for taking the question. So first, I guess, sort of a kind of a bigger picture type of question here. So obviously after the pandemic, we've seen changing patterns in consumer engagement. Do you feel like these shifts in the consumer engagement actually accelerated during the quarter? Or is it just kind of more of the same that you saw here in the December quarter?

大家早安。感謝您回答這個問題。所以首先，我想，這是一個更大層次的問題。顯然，疫情過後，我們看到消費者參與模式改變了。您是否覺得消費者參與度的轉變在本季實際上有所加速？或者這只是您在 12 月季度看到的相同情況？

Thanks for your question. I think what we saw, we have to read through the smoke here, the smoke being the difficulties we had with the implementation of the OMS. But yes, I think we're seeing an end of the what we call here, the COVID bullwhip, where we had a great acceleration of demand when people were homebound and that's eased up considerably. So we think that this fiscal year is the end of that for us, we're seeing signs of the consumer responding better. We've introduced some lower price points and some highs.

感謝您的提問。我想，我們必須看透我們所看到的煙霧，煙霧就是我們在實施 OMS 時遇到的困難。但是的，我認為我們正在看到所謂的「新冠疫情鞭策」的結束，當人們被困在家中時，需求會大大加速，而這種情況已經大大緩解。因此我們認為本財年對我們來說是一個結束，我們看到了消費者反應更好的跡象。我們推出了一些較低的價格點和一些較高的價格點。

So a broadening of our price range and we've seen good take on the lower end, but we need to be to do even more of that. So we have some of those products in the pipeline. So Tom, I would say that we're seeing good response from the customer. You pointed out in your remarks, Tom, that we saw a degradation in our business demand, but the consumer demand was actually actually making up for some of that until we hit the wall with the system.

因此，隨著我們的價格範圍不斷擴大，我們看到低端產品的良好表現，但我們需要做得更多。我們已經在籌備一些這樣的產品。所以湯姆，我想說我們看到了客戶的良好反應。湯姆，您在演講中指出，我們的業務需求有所下降，但消費者需求實際上彌補了部分需求下降，直到我們的系統遇到瓶頸。

I think we're seeing similar bifurcation the customer. We are seeing that that lower demographic, that lower household income customer, which is continuing obviously watch their budget and their pocketbooks and we have seen some good results with some of the product introductions and the prices that we've brought forth. But as Jim mentioned, we need to do more.

我認為我們看到了類似的客戶分歧。我們看到，較低的人口統計和較低的家庭收入客戶顯然會繼續關注他們的預算和錢包，而且我們推出的一些產品和價格也取得了良好的效果。但正如吉姆所說，我們還需要做得更多。

Got you. And then as far as the issues with the order of management system, when was this initially put in place. And as far as getting this system to work as it should be, what's the time frame as to when you would expect to be, 100% fully functional as the system was designed to be.

明白了。至於管理系統秩序的問題，它是什麼時候最初建立的。為了讓這個系統正常運行，您期望什麼時候能實現系統 100% 完全按照設計運行？

Hi Anthony, this is James. So we implemented the system at the end of August into September. We did all of the, necessary user acceptance testing. We did regression analysis simulation testing to simulate the peak of the busy season. So like with any system implementation, there's going to be some issues along the way. But what happened as we, got into the peak of the busy season after Thanksgiving, the surge of that and with some of the complex orders in the system, they were getting put on hold and it was creating a real backlog. So a lot of orders were being put on hold and you know, or cancelled because of that, we had manual workarounds on that. So it kind of showed itself in the peak in December the issue. We're working through that now it really.

嗨，安東尼，我是詹姆斯。因此我們在八月底到九月實施了這個系統。我們進行了所有必要的用戶驗收測試。我們做了迴歸分析模擬測試來模擬旺季的高峰。因此，與任何系統實施一樣，在此過程中肯定會出現一些問題。但當我們進入感恩節後的繁忙季節高峰期時，出現了訂單激增的情況，而且系統中出現了一些複雜的訂單，這些訂單被擱置，造成了嚴重的積壓。因此許多訂單被擱置或取消，我們對此採取了手動解決方法。因此，這個問題在 12 月達到頂峰。我們現在正在努力解決這個問題。

Did the last two weeks of a real impact because, we're doing huge order volumes every day and anything that had to be was done in a manual workaround was just backlogging for us. And because we have a platform customer service system, as Tom mentioned in his remarks, there was contagion from that problem that is we were sucking up all of our resources across the enterprise to try and deal with the issues and that was causing staff shortages or lack of availability across the brands. So it was that last couple of weeks that the small problems that they could work around through those test periods just became overwhelming. So, Tom, where are we on the path to a full recoveries?

過去兩週是否產生了真正的影響，因為我們每天都要處理大量的訂單，任何必須以手動方式完成的工作對我們來說都只是積壓。而且由於我們有一個平台客戶服務系統，正如湯姆在發言中提到的那樣，這個問題具有傳染性，即我們耗費了整個企業的所有資源來嘗試解決這些問題，而這導致各個品牌的員工短缺或缺乏可用性。因此，在過去的幾周里，他們在測試期間能夠解決的小問題變得難以解決。那麼，湯姆，我們在全面康復的道路上走得怎麼樣了？

Anthony asked so many of those challenges were addressed within the quarter, we still have some open items. We expect that the majority of those will be resolved in this quarter or our Q3 quarter. And all 100% to get to the 100% level within these next two quarters. However, I would point out Anthony that these volume levels on the food group, in particular, it doesn't cause us any system systemic issues now because they're all manageable because of the volumes on the flower side. We didn't change the order management system and flowers becomes a more dominant part of our business during these next this quarter.

安東尼要求在本季度內解決許多挑戰，但我們仍有一些未解決的問題。我們預計其中大部分問題將在本季或第三季解決。並且全力以赴，在接下來的兩個季度內達到 100% 的水平。然而，我想指出的是，安東尼，特別是食物群體的這些數量水平現在不會給我們帶來任何系統性問題，因為由於花卉方面的數量，它們都是可控的。我們沒有改變訂單管理系統，鮮花將成為接下來這個季度我們業務中更主要的一部分。

And next with Valentine's Day, Easter Mother's Day, Father's day. So that order management system wasn't touched that we implemented that a couple of years ago. So that's in and debugged.

接下來是情人節、復活節、母親節、父親節。因此，我們幾年前實施的訂單管理系統並沒有受到影響。至此，一切已完成並調試完畢。

So while we're doing the fixes on the OMS system for Harry and David and the food group, the, it doesn't cause the customer any difficulty because we have the bandwidth to deal with as we fix the last of the issues. So for the customers that cancel their orders because of these issues, do you plan to do a specific marketing outreach to them to make sure you don't lose those customers permanently? I was just wondering how you're thinking about that from a marketing perspective.

因此，當我們為 Harry 和 David 以及食品集團修復 OMS 系統時，這不會給客戶帶來任何困難，因為我們有足夠的頻寬來處理最後一個問題。那麼，對於因為這些問題而取消訂單的客戶，您是否計劃對他們進行特定的行銷推廣，以確保您不會永遠失去這些客戶？我只是想知道您從行銷角度是如何看待這個問題的。

Yeah, absolutely. We've reached out already to those customers. We plan and we have a win back program going on. We're extremely focused that will go on throughout the year. There'll be multiple touch points with those customers throughout the year. It is extremely important to us. In some cases, we did lose the trust of some of those customers that we fail. We take that very seriously and we're working to regain their trust.

是的，絕對是如此。我們已經聯繫了這些客戶。我們計劃並正在實施一個贏回計劃。我們非常專注於此目標，並將持續全年。全年我們將與這些客戶有多次接觸。這對我們來說極為重要。在某些情況下，我們確實失去了一些客戶的信任，我們失敗了。我們對此非常重視，並正在努力重新贏得他們的信任。

Got it. Thank you very much. I'll pass it on to others and the best of luck going forward.

知道了。非常感謝。我會將它傳遞給其他人，並祝他們未來好運。

The next question comes from Alex Fuhrman with Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Alex Fuhrman。

Hey, guys, thanks very much for taking my question. Looking out over the next couple of weeks, it looks like a little bit of a better placement for Valentine's Day relative to the Super Bowl this year. Can you talk about how you're going to go after Valentine's Day this year? I know it's been challenging. The last couple of years since the Super Bowl moved a week later, are there maybe opportunities to engage with customers before the Super Bowl or maybe be hyper engaged during that couple of days between the Super Bowl and Valentine's Day? Just curious what you've learned and how that's going to impact your strategy this year?

嘿，夥計們，非常感謝你們回答我的問題。展望未來幾週，今年情人節的舉辦位置似乎比超級盃略好一些。可以聊聊今年情人節之後要怎麼過嗎？我知道這很具挑戰性。自從超級盃比賽推遲了一周以來，過去幾年，是否有機會在超級盃比賽之前與客戶互動，或者在超級盃和情人節之間的那幾天內進行高度互動？只是好奇你學到了什麼以及這將如何影響你今年的策略？

Thanks for your question. And in answer to your the day placement question, we're pleased that the day moves to a Friday this year. It's the best day placement from a sales point of view for us. And yes, thank you for using your influence to move the Super Bowl date. That's very helpful too because last year it was two days before Valentine's day. So that that was a crusher for us in terms of attention distraction. So yes, having five big selling days post Super Bowl is critical for us for the holiday. So we have a marketing scheme in place to reach out to customers.

感謝您的提問。關於您關於日期安排的問題，我們很高興今年的活動日期改為週五。從銷售角度來看，這是我們最好的日間展示位置。是的，感謝您利用自己的影響力來推遲超級盃的日期。這也非常有幫助，因為去年它是在情人節前兩天。所以從分散我們的注意力的角度來說，這對我們來說是一個毀滅性的打擊。所以是的，超級盃之後的五天大銷售對於我們的假期至關重要。因此，我們制定了行銷計劃來接觸客戶。

Well, before EMPS giving them a lot of incentives to place their orders early in the cycle. So we have a two week selling period and right in the middle of that is Super Bowl. So again, that's so much better than last year where it was just before Super Super Bowl was just before Valentine's day. So good day placement. I also point out that Easter is a better place than last year. Easter was at the very beginning of the fourth quarter last year.

嗯，在 EMPS 給予他們很多激勵讓他們在周期早期下訂單之前。因此，我們有兩週的銷售期，中間剛好是超級盃。所以，這比去年好多了，去年是在超級盃之前和情人節之前。真是好日子安排。我還指出，今年的復活節比去年更好。去年復活節正值第四季初。

So a couple of selling days in the third quarter and when it's early, it retards the appeal and the sales of Easter because it comes up so early on people. So having it later in April in the in the April 20, I think it is a great selling time for us. So not the biggest of holidays, but an important holiday and one with good margins and a good distribution of customer demand. So it's easier for our florist to really delight our customers then. And so those two day placements help us a lot more. You did Tom on a marketing plan.

因此，第三季的幾天銷售時間以及時間尚早，會降低復活節的吸引力和銷售量，因為復活節對人們來說來得太早了。因此，四月下旬，也就是 4 月 20 日，我認為這對我們來說是一個很好的銷售時機。因此，雖然這不是最重要的節日，但卻是一個重要的節日，而且利潤豐厚，客戶需求分佈良好。這樣，我們的花店就能更容易取悅顧客。所以這兩天的實習對我們幫助很大。你為湯姆制定了行銷計劃。

Just obviously, we've been at this Valentine's thing for a long time. And there are different personalities that can be engaged and attracted early in the season and those who are more planful, sometimes those who are more price conscious, etcetera earlier around that and can engage those customers pre Super Bowl in this case. And then there's an awful lot of those procrastinators out there that, we will enjoy the extra days of selling this year compared to last year.

顯然，我們已經慶祝情人節很久了。我們可以早在賽季初期就吸引和接觸不同個性的客戶，有些客戶更有計劃性，有時對價格更敏感等等，我們可以在超級盃之前就吸引這些客戶。然後，還有很多拖延者，與去年相比，今年我們將享受額外的銷售天數。

This year in the fourth quarter that five less selling days between Thanksgiving and Christmas seem to have an impact on us too. So day placement for those particularly for those three big holidays, really makes a difference for us and we're happy to see in the second half of the year, we have two good placements around Valentine's day and Easter.

今年第四季度，感恩節和聖誕節之間少了五天的銷售日似乎也對我們產生了影響。因此，特別是針對這三個重大節日的安排，對我們來說確實意義重大，我們很高興看到在下半年，我們在情人節和復活節期間有兩個很好的安排。

Okay, that's really helpful. Thanks. And then, if I could just ask quickly on corporate gifting, it sounds like the decline, there was a little bit self inflicted, a little bit demand. Can you just help to kind of, give us a little bit more historical context. How big is your corporate gifting business today compared to what it was before the pandemic? And what's your kind of outlook there for the next couple of years?

好的，這確實很有幫助。謝謝。然後，如果我可以快速問一下關於公司禮品的問題，聽起來像是下降了，有點是自己造成的，也有點是需求。您能否幫助我們，為我們提供更多一些歷史背景？與疫情前相比，您目前的企業禮品業務規模有多大？您對未來幾年有什麼展望？

So just this year was around $70 million compared to last year of $84 million. So it was down almost $15 million or 17.5% on a year-over-year basis. And it was higher, obviously coming out of the pandemic. So it was obviously much bigger than the decline in e-commerce was the corporate sales. We did see the our corporate customers, reduce their, reduced their spend, so the AOV was down and they reduced the item per order that let you know, and also less orders. So we were obviously looking at that very closely, some of it was impacted by the RMS. We're trying get to the bottom but we definitely did see weakness in our corporate consumer more more than our, consumer on the corporate side was obviously, much more, significant as a percentage decline. Just to add Alex. We are bullish about the corporate business.

因此，今年的收入約為 7,000 萬美元，而去年的收入為 8,400 萬美元。因此與去年同期相比下降了近 1500 萬美元，即 17.5%。而且顯然由於疫情的影響，這一數字有所上升。因此，企業銷售額的下降幅度顯然比電子商務的下降幅度大得多。我們確實看到我們的企業客戶減少了他們的支出，因此平均訂單價值 (AOV) 下降了，他們也減少了每個訂單的商品數量，訂單也減少了。因此我們顯然在密切關注這個問題，其中一些問題受到了 RMS 的影響。我們正在努力找出原因，但我們確實看到企業消費者的疲軟程度超過了我們的預期，企業方面的消費者明顯，從百分比下降來看更為顯著。只是為了添加 Alex。我們對公司業務充滿信心。

We have some hotspots in the corporate business on lower price point items across the enterprise.

我們在整個企業的低價位產品上存在一些企業業務熱點。

We have to retool some of our offerings but.

我們必須重新調整我們的一些產品。

And how we and how we go to market, how we, how we staff our teams on the marketing and stay engaged more year round because we have the breadth of product offerings now that certain year round.

以及我們如何進入市場，我們如何配備行銷團隊並全年保持參與，因為我們現在擁有廣泛的產品供應。

Okay, guys, that's really helpful.

好的，夥計們，這真的很有幫助。

The next question comes from Michael Kupinski, Noble Capital.

下一個問題來自 Noble Capital 的 Michael Kupinski。

Thanks for taking my questions and good morning. In terms of the marketing strategy you talked about, I was just wondering in some of the issues that you have with marketing. I was wondering it was more the content and message or related to maybe some of the channels you were using and just getting a lower return. I was just wondering as you kind of look forward in terms of the marketing strategy, what types of changes are you anticipating at this point?

感謝您回答我的問題，早安。關於您所談到的行銷策略，我只是想知道您在行銷方面遇到的一些問題。我想知道這更多的是內容和訊息，或者可能與您正在使用的一些管道有關，但獲得的回報較低。我只是想知道，當您展望行銷策略時，目前預計會發生哪些類型的變化？

I think there were some specific changes in some of our bottom of the funnel channels where our the search engine results page changes some of the ranking that really hit us in kind of natural search in branded search where those were a very low cost channels for us and and those those declined more than expected. As we go forward, we continue to to push more in the mid and upper funnel channels, etcetera. And we think we continue to obviously refine our content and we find our content to be more relevant to individual segments of our customers. So we think we continue to make strong strides there. And we're hopeful that, you hear the AI term used a lot, but we're hopeful that, we'll see in the increased efficiency with our ability to create content that that larger scale.

我認為我們的一些底部管道發生了一些特定的變化，我們的搜尋引擎結果頁面改變了一些排名，這些排名在自然搜尋和品牌搜尋中對我們產生了很大影響，這些管道對我們來說是成本非常低的管道，但下降幅度超出了預期。隨著我們不斷前進，我們將繼續在中上層漏斗渠道等方面加強。我們認為我們顯然會繼續完善我們的內容，並且我們發現我們的內容與我們客戶的各個群體更加相關。因此我們認為我們將繼續在那裡取得長足進步。我們希望，您會經常聽到使用 AI 術語，但我們希望，我們創建更大規模內容的能力將提高效率。

Michael, what we're seeing with the technology deployments that we're and by the way, we don't fail to notice the irony of we had a technology fail in terms of an implementation, not the technology itself but the anticipation of how the demand would impact it yet. We're full speed ahead on other technology investments and that manifests itself in two different ways. One is on the cost side, we're able to operate more efficiently by digitizing so many more of the things that we do and it impacts us and we certainly anticipate that it will impact us on the marketing side too as we employ more tools and capabilities there.

邁克爾，順便說一下，我們看到技術部署的諷刺之處在於，我們的技術在實施方面失敗了，不是技術本身，而是對需求將如何影響它的預期。我們正全速推進其他技術投資，這體現在兩個不同的面向。一方面是成本方面，透過將更多的工作數位化，我們能夠更有效率地運作，這對我們產生了影響，我們當然預計，隨著我們在行銷方面採用更多的工具和能力，它也將對我們產生影響。

So we expect it to do two things, especially beginning this these next two quarters in front of us. And then throughout the rest of this calendar year, we see this calendar year is a big year for us in terms of changing things we do on the cost side and changing how we do things that will generate more revenue on the top line side. And these new digital tools are really, really intended to impact us in both ways on the growth side and on the cost side.

因此，我們預計它會做兩件事，特別是從接下來的兩個季度開始。然後，在今年剩下的時間裡，我們認為這一年對我們來說是重要的一年，因為我們將改變成本的所作所為，並改變我們的做事方式，以便在營收方面創造更多的收入。這些新的數位工具確實會在成長和成本兩個方面對我們產生影響。

And just to follow up on that, the margin outlook is actually a little bit better than what I was looking for, especially with the lowered revenue expectations for the year. Can you talk about where you anticipate to see improved adjusted margins? Will it be a combination or, maybe if you can give me the weighting of reduced commodity costs, transportation costs or just from your work smarter initiatives? I was just wondering if you can kind of give us some additional color on that.

順便說一下，利潤率前景實際上比我預期的要好一點，特別是在今年的收入預期降低的情況下。您能談談您預計調整後的利潤率會在哪些方面有所提高嗎？這是一種組合嗎？或者您能否告訴我降低商品成本、運輸成本的權重，或者僅僅是從您的更聰明的工作舉措中得出的？我只是想知道您是否能就此問題給我們一些進一步的詳細資訊。

I'll ask James to give you some color and we're not anticipating on the any savings on the commodity costs. You always they've moderated, they've come back closer to the mean now, but you get little bubble up, things that impact us. So we're comfortable with cocoa prices, for example, on the commodity side through the rest of this calendar year, which it gets us through the Christmas season. But then you have a bird flu and egg costs go through the roof and availability is always a question.

我會讓詹姆斯給你一些說明，我們不會期望在商品成本上有任何節省。他們總是會有所節制，現在已經回到了更接近平均值的水平，但是也會出現一些小泡沫，一些對我們造成影響的事情。因此，就商品方面而言，我們對今年剩餘時間的可可價格感到滿意，這將幫助我們度過聖誕季。但一旦爆發禽流感，雞蛋價格就會飛漲，供應就成了問題。

So those are things where we expect to be able to manage day to day. So no real savings there. The savings will be in terms of how to work smarter initiatives, how we do things, the amount of people we deploy to do them, the automation that we've been constantly installing now in our distribution centers, those are in place and have shown good, good results. What would you do?

所以這些都是我們希望能夠日常管理的事情。因此，並沒有真正的節省。節省的資金體現在如何實施更聰明的工作計劃、我們如何做事、我們部署的人員數量以及我們現在在配送中心不斷安裝的自動化系統等方面，這些系統已經到位，並顯示出良好的效果。你會怎麼辦？

Michael, what I would add is that, we're obviously we're continually to look at all the aspects of the business. We're aiming to streamline processes and reduce costs. But I also want to caution that we will some of that savings from, even the margin standpoint, we plan on investing back in the business and our sales and marketing strategy. So we are taking cost out, but we do have to reinvest some of that savings into marketing and sales.

邁克爾，我想補充的是，我們顯然會持續關注業務的各個方面。我們的目標是簡化流程並降低成本。但我也想提醒一下，我們計劃將部分節省下來的資金，甚至從利潤的角度來看，重新投資於業務以及我們的銷售和行銷策略。因此，我們正在削減成本，但我們必須將部分節省的成本重新投資到行銷和銷售中。

But having reverted to closer to the mean now on gross margin and seeing that actually, we would have a better gross margin except for the OMS issue, that gave us the confidence there.

但現在毛利率已經恢復到更接近平均值，實際上看到，除了OMS問題之外，我們的毛利率實際上會更高，這給了我們信心。

Got you and typically you guys in periods like this, which has been challenged for some ecommerce type companies and things like that, you kind of stepped on the M&A activity and was just wondering if you can just kind of gauge what the M&A level might be at this point.

在這樣的時期，一些電子商務類型的公司面臨挑戰，您通常會涉足併購活動，我只是想知道您是否可以判斷此時併購的水平。

I think those of so many of us who are in the consumer facing ecommerce, almost exclusive, but not 100% exclusive e-commerce have all felt similar drains. So that creates a strain for us. Yes, but because of the good balance sheet we have and the leverageable assets we have. I would tell you that the tenor of people interested in linking up is increased, whether or not we actually do anything there is to be determined. But I think the opportunities will be quite a bit better than they've been in the last couple of years. So if we find the right opportunity and we think it's accretive to what we do helps our customer in a better way, I think you'll see us have the potential to be more active in the quarters ahead.

我認為，我們當中的許多人都從事面向消費者的電子商務，幾乎是獨家的，但不是 100% 獨家的電子商務，都感受到了類似的損失。這給我們帶來了壓力。是的，但是因為我們的資產負債表良好，並且擁有可槓桿資產。我想告訴你的是，對建立聯繫感興趣的人的熱情正在增加，無論我們是否真的採取任何行動，這都有待確定。但我認為，現在的機會將比過去幾年好得多。因此，如果我們找到正確的機會，並且我們認為這有利於我們更好地幫助客戶，那麼我想你會看到我們有可能在未來幾季更加活躍。

Got you. That's all I have.

明白了。這就是我的所有了。

The next question comes from Linda Bolton Weiser, D. A. Davidson.

下一個問題來自 Linda Bolton Weiser 和 D. A. Davidson。

So just a clarification if you would on the Valentine's Day placement, maybe I'm confused but I always thought that when Valentine's Day is in the middle of the week, it's better because then the guys will be placing orders they have delivered to, women's offices, etcetera. And I thought if it was Friday or Saturday, it's bad because they won't send the flowers, I'll just buy them and take the woman out to dinner or something. So I thought Wednesday was much better than Friday and Wednesday was last year and Friday this year. So can you just clarify? Maybe I'm just confused on that.

因此，如果您願意的話，我想澄清一下情人節的安排，也許我感到困惑，但我一直認為，當情人節在周中時，情況會更好，因為那時男士們會下訂單，送貨到女士辦公室等地方。我想，如果是星期五或星期六，那就糟糕了，因為他們不會送花，我只會買花然後帶那個女人出去吃飯或做其他事情。所以我認為星期三比星期五好得多，去年是星期三，今年是星期五。你能澄清一下嗎？也許我只是對此感到困惑。

No problem on the confusion. The having been doing this now with this is my 48th Valentine's day. Actually, it would be my 49th Valentine's Day. The trends are inescapable for us. We Wednesday is better than Tuesday. Thursday is the best day all around. From my point of view, not from the sales point of view, but from an overall point of view because it gives you the last minute. Charlie's will be very accepting of a delay. They come online midday on Thursday and see that it's not available, they'll accept the Friday delivery.

混淆上沒問題。我現在正在做這件事，這是我的第 48 個情人節。事實上，這將是我的第 49 個情人節。對我們來說，這些趨勢是不可避免的。我們週三比周二好。星期四是最好的一天。從我的角度來看，不是從銷售的角度，而是從整體的角度，因為它給了你最後一分鐘。Charlie's 非常樂意接受延遲。他們週四中午上網發現沒有貨，所以就接受週五送貨。

So it extends your extends your selling ability with the delivery window on Friday. So, but from a pure sales point of view, not from a delivery point of view. Pure sales point of view. Friday is the best day because we like our customer to be at work and busy. And when it's on weekend, they have other options. They're out shopping, they'll take them out to dinner, they'll pop into a store and pick something up. But when they're working, either at home or in the office, it narrows the field of options and it's a better sales placement for us. So Friday is much better than Wednesday. I would prefer not to have leap year, take the Thursday out because next year it does move to a weekend, but this year it's on the best day.

因此，透過週五的交貨窗口，可以延長您的銷售能力。但從純粹銷售的角度來看，而不是從交貨的角度來看。純粹的銷售觀點。星期五是最好的一天，因為我們希望我們的客戶上班並且忙碌。而到了週末，他們還有其他選擇。他們出去購物，帶他們出去吃飯，或走進商店買東西。但當他們工作時，無論是在家還是在辦公室，選擇範圍就縮小了，對我們來說這是一個更好的銷售機會。所以星期五比星期三好多了。我寧願沒有閏年，把星期四去掉，因為明年它確實會移到週末，但今年它是最好的日子。

Thanks for that explanation. And then just to be clear because I'm not kind of talked about still some fixit actions coming in the next few quarters for Valentine's day on the food side, will the issues be all fixed or not? I know the flower side is much bigger but will the issues be completely fixed on the food side for Valentine's Day or not really.

謝謝你的解釋。然後需要明確的是，因為我還沒有談到在接下來的幾個季度針對情人節食品方面採取一些修復措施，這些問題會全部得到解決嗎？我知道鮮花的問題更大，但情人節的食物方面的問題能否完全解決呢？

On the food side, we are expecting the majority of those to be fixed. But as Jim had mentioned, if there are still remaining challenges, there won't be customer facing issues. We have the resources internally to make sure anything that does get, bogged down in the system. If you will, we can address it to manual intervention and you know that the and it will not have any impact on demand.

在食品方面，我們預計大部分問題都能夠解決。但正如吉姆所提到的，如果仍然存在挑戰，那麼就不會出現客戶面臨的問題。我們擁有內部資源來確保系統中遇到的任何問題都能解決。如果您願意，我們可以將其轉化為人工幹預，並且您知道這不會對需求產生任何影響。

And Linda, obviously we're extremely disappointed with the challenges from the OMS system. But I just want to remind everyone that we shipped over, he delivered over $7 million orders in Q4. So while we did have some issues, we still got the lion's share of all the orders were delivered to our customers and KHO, right.

Linda，我們顯然對 OMS 系統帶來的挑戰感到非常失望。但我只想提醒大家，我們的出貨量已經超過了，他在第四季交付了超過 700 萬美元的訂單。因此，雖然我們確實遇到了一些問題，但我們仍然將大部分訂單交付給了我們的客戶和 KHO，對吧。

We won't have that same kind of demand in the food group. So if there are any things that are unresolved but manageable with our existing processes, so to get to 100% with the new system is working the way we want, that's by the end of the fourth fiscal quarter of the spring quarter, but it won't be anything that's not resolved, will not be noticeable to the customers. And that's because what demand is good. It's not nearly as high as those couple of last couple of weeks of December in the food group.

在食品領域我們不會有同樣的需求。因此，如果有任何尚未解決但可以透過我們現有流程進行管理的問題，那麼為了使新系統 100％按照我們想要的方式運行，那就是在春季第四財季末，但這不會是任何尚未解決的問題，客戶不會注意到。這是因為需求是好的。它遠不及 12 月最後幾週食品類的價格那麼高。

Okay, understood. And then finally, I was just curious about, you talked about your efficiency of your marketing costs then, but I was wondering in general about, about rates for digital spending, digital marketing cost rates. They were expected to go lower postelection. Is that what you found general in the more macro marketing environment? There was a pullback in rates after the election.

好的，明白了。最後，我只是很好奇，您談到了您的行銷成本效率，但我總體上想知道數位支出率、數位行銷成本率。預計選舉後支持率會下降。您在更宏觀的行銷環境中發現了這樣的普遍現象嗎？選舉後利率有所回落。

I'd say certainly compared to before the election, compared to after there rates were more reasonable. Overall, if we compare it to kind of the prior year, we did see increased costs in the lower portion of the funnel that we advertised. So a lower portion.

我想說，與選舉前相比，利率肯定比選舉後更合理。總體而言，如果我們將其與前一年進行比較，我們確實看到我們所宣傳的漏斗下部的成本增加。因此比例較低。

That was efficiency. Right.

這就是效率。正確的。

It was more about efficiency and then on the mid and top, it was kind of a mixed bag, I'd say. We saw definitely some part, some great opportunities with some partners and some tactics we had and others were a little higher. So let's say it was mixed across the board, but certainly as we came out of the election, the costs were down.

我想說，這更多的是關於效率，然後在中端和高端，這是一種混合體。我們確實看到了一些部分，與一些合作夥伴一起看到了一些很好的機會，看到了我們採取的一些策略，而其他的策略則更高一些。因此，我們可以說各方面情況都有好有壞，但可以肯定的是，隨著選舉的進行，成本確實下降了。

And then just one last one, just if you could review your tariff exposure, you've probably got some on the PMA side and also some of your baskets and stuff. Could you review what the plan is there?

最後一個問題，如果你能審查一下你的關稅風險，你可能會在 PMA 方面有一些，也可能在你的籃子裡有一些。您能回顧一下那裡的計劃嗎？

It's an ever changing landscape, Linda, this is Jim. We had a little jolt to our cardiac systems earlier in the week. When Colombia was threatened with tariffs. Colombia is an important market for us. On the floral side of things, they grow a lot of product that we use here in the US. So we were very happy. A couple of days later to see that resolved, but we'll never get that sleeve back, but perhaps something much James, how do you give us some context again to Linda about how, how our sourcing materials where they come from and how they be exposed to.

這是一個不斷變化的景觀，琳達，這是吉姆。本週早些時候，我們的心臟系統受到了輕微的震動。當哥倫比亞受到關稅威脅時。哥倫比亞對我們來說是一個重要的市場。就花卉方面而言，他們種植了許多我們在美國使用的產品。所以我們非常高興。幾天后，事情解決了，但我們再也無法拿回那個袖子了，但也許詹姆斯會給我們帶來更多東西，你能再次向琳達提供一些背景信息嗎，關於我們的採購材料來自哪里以及它們是如何接觸到的。

So Linda, just a little way of context. If you look at our cost of goods sold approximately a billion dollars, on an annual basis, our cost of goods sold within that roughly 40% of that is comprised of the cost of merchant of merchandise. And within that, it's about 10% of that would be China. So we're talking about there's, 40 $45 million of purchases from China. So clearly, the tariff will have an impact but it's off of a base, of a billion dollars of cost of goods sold. So, we're looking at it, we're up cost of goods sold a billion dollars, $40 million & $45 million of exposure to Asia. And so that's what we'd be watching. So we don't want to see any increase in cost, but any increase in cost would be of that $40 million $45 million for China specifically.

Linda，我們只是稍微介紹一下背景。如果您看看我們每年約 10 億美元的銷售成本，其中約 40% 是商品商家的成本。其中約10%來自中國。所以我們談論的是來自中國的採購額為 4000 萬美元。因此顯然，關稅將產生影響，但它是以 10 億美元的銷售成本為基礎的。因此，我們正在考慮，我們的銷售成本增加了 10 億美元，其中 4,000 萬美元來自亞洲市場，4,500 萬美元來自亞洲市場。這就是我們所關注的。因此，我們不希望看到成本增加，但如果增加任何成本，對中國來說，這筆費用就會增加 4,000 萬美元至 4,500 萬美元。

Thank you. Very helpful.

謝謝。非常有幫助。

(Operator instructions)

（操作員指令）

The next question comes from Doug Lane, Water Tower Research.

下一個問題來自水塔研究公司的道格‧萊恩 (Doug Lane)。

Hi, good morning, everybody. Just to follow up on Linda's question, what would you have done if terrorists had been enacted in Colombia?

大家早安。我只是想回答琳達的問題，如果哥倫比亞出現了恐怖份子，你會怎麼做？

We would have postponed this call to see what the impact would be. That would have been, that would have been painful because we rely on Columbia and other joining markets for a good supply of our product here. So the good news is we don't have to dust off that plan and it seems has been completely resolved, but it would have been damaging. So I don't, I don't have a hard answer for you. Doug, we're just glad we don't have to answer that.

我們本來會推遲這次通話，看看會產生什麼影響。那將會是，那將會是痛苦的，因為我們依賴哥倫比亞和其他加入的市場來獲得我們產品的良好供應。因此，好消息是我們不必重新制定該計劃，而且它似乎已經完全解決了，但它可能會造成損害。所以我沒有辦法給你一個確切的答案。道格，我們很高興我們不必回答這個問題。

In the short term. It would be challenging, in weeks, especially leading into Valentine's. Obviously our florist buys that have been, largely In place for a period Of time. So I assume the tariff to would have been on top of our contracted prices, right?

短期內。在接下來的幾周里，這將會充滿挑戰，尤其是在情人節來臨之前。顯然，我們的花店購買的這些產品大部分已經存放了一段時間。所以我認為關稅應該是在我們合約價格之上的，對嗎？

I would assume, all to be negotiated, but midterm we would be able to not completely but move product around to different markets throughout the world, et cetera to mitigate it somewhat. And we've been conscious of that for a while. So we had a whole program to encourage domestic growing of product in partnership with our grower community and some of it independent with our domestic growers that program is not produced the results we wanted.

我認為，所有這些都需要協商，但中期我們可以將產品（雖然不是完全）轉移到世界各地的不同市場，等等，以在一定程度上緩解影響。我們早就意識到了這一點。因此，我們制定了整個計劃，鼓勵與種植者社區合作進行國內產品種植，其中一些是與國內種植者獨立的，但該計劃並未產生我們想要的結果。

Because frankly, some of our providers who we spent a long time cultivating decided that cannabis was a more profitable crop. Well, that didn't turn out to be the case and a few of them have returned to flower production but not all of them yet. So it's something we're always conscious of doug. And we've had 10 year plans in place to, to increase the breadth of sources for our flower product. A lot of it in partnership with our grower community because they have the same issues and concerns. So it's something we work on all the time.

因為坦白說，我們花了很長時間培育的一些供應商認為大麻是一種更有利可圖的作物。但事實並非如此，其中一些已經恢復開花，但還不是全部。所以這是我們一直意識到的事情，道格。我們制定了十年計劃來擴大花卉產品的來源範圍。我們與種植者社區進行了很多合作，因為他們有相同的問題和擔憂。所以這是我們一直致力於的事情。

Is Colombia that important or could you shift of supplies to other countries in case it's just an isolated incident?

哥倫比亞真的那麼重要嗎？或者如果只是孤立事件，你能將供應轉移到其他國家嗎？

No, it's that important to us. It's a when I say us, it's the whole country, the whole industry is is dependent on Colombia probably for 50% to 60% of all the fresh flour product grown and grown and sold in this country.

不，這對我們而言非常重要。當我說我們時，是指整個國家、整個產業都依賴哥倫比亞，這個國家種植、生產和銷售的所有新鮮麵粉產品大概有 50% 到 60% 都依賴哥倫比亞。

Wow. So everybody would be in the same boat. That's helpful and just to be in the boat because we don't want to be in that boat.

哇。所以每個人都會面臨同樣的情況。這很有幫助，因為我們不想處於那種境地。

No, but that is not good for anybody. I get that just to shift gears on the wholesale business because you hit on the first quarter. Call that wholesale is going to be good. This year and frankly, it was a lot better than I thought it was going to be. So, it's a bit of a reversal from recent trends where ecommerce has been outperforming wholesale and now you have ecommerce down in the mid to high single digits depending upon your adjustments and the wholesale was up strongly in the 10s. So that's a big shift. I just wondered if you could talk a little bit more about that shift and whether you think that's something that's going to continue or will ecommerce revert back out before in wholesale.

不，但這對任何人都沒有好處。我明白，因為你在第一季就取得了成功，所以要改變批發業務的方向。稱批發為好。坦白說，今年的情況比我想像的要好得多。因此，這與最近的趨勢有些逆轉，最近的趨勢是電子商務的表現優於批發，而現在，根據您的調整，電子商務下降到了中高個位數，而批發則強勁上漲了 10%。這是一個巨大的轉變。我只是想知道您是否可以再多談一下這種轉變，以及您是否認為這種轉變將會持續下去，或者電子商務是否會在批發之前恢復。

Doug. What we think on that is it's counter counter indicative. In other words, wholesale is up because retail in store traffic was better. So that's where that product is sold. So that shows you that the customer felt comfortable going out and about and shopping in the retail store which took away from the shopping on e-commerce. So that's going to be a counterbalance to the e-commerce hit when however, going forward, we expect wholesale to stay stronger because we've cultivated new relationships in the wholesale channels this year. So we'll have a broader base of customers in the years ahead.

道格。我們對此的看法是，這是相反的。換句話說，批發量上漲是因為店內零售客流量增加。該產品就是在那裡銷售的。這表明，顧客覺得外出和在零售店購物很舒服，而這取代了電子商務購物。因此，這將抵消電子商務的衝擊，然而，展望未來，我們預計批發業務將保持強勁，因為我們今年在批發管道建立了新的關係。因此，未來幾年我們將擁有更廣泛的客戶群。

So we expect that it won't be counter in indicative of the e-commerce pressure. We saw, we expect both to go up next year. We're anticipating and, and I hope we haven't built the plan yet. But on the wholesale side, we have a broader wholesale customer base. So we'd expect that will continue to look good because of the breadth of customers and a product products, frankly that we've introduced there, that was so successful in the retail stores this year.

因此我們預計這不會對電子商務壓力產生負面影響。我們看到，我們預計明年兩者都會上漲。我們正在期待，我希望我們還沒有製定計劃。但在批發方面，我們擁有更廣泛的批發客戶群。因此，我們預計情況將繼續保持良好，因為客戶範圍廣泛，而且我們推出的產品今年在零售店中取得了巨大成功。

And which particular channels are you talking about?

您指的是哪些特定管道？

But that's where we manufacture a gift products and sell into our retail partners as a wholesale product. So into the big big box stores that we sell to all the time.

但那是我們生產禮品產品並作為批發產品銷售給我們的零售夥伴的地方。因此，我們一直將產品銷售到大型倉儲式商店。

So like the mass merchants or the club stores in particular or I take it it's the large chains and not the mom and pops.

尤其是像大眾商店或俱樂部商店，或者我認為是大型連鎖店而不是夫妻店。

That's right.

這是正確的。

Okay, thank you.

好的，謝謝。

Thank you all for your time and attention today for your interest. It was a tough quarter for us. I will tell you that as I look at the big influences that we've experienced during this during this period, we think three things have happened here. One is that the COVID bullwhip that so many of us in ecommerce have experienced is playing its hand out. So it's coming to a close. So we won't have that. We're hopeful that we won't have that to deal with. We are concerned that the bigger macro environment is still impacting the paycheck to customers who for a couple of years there as a result of a recovery programs had a great deal of discretionary spending capability. We're still concerned about them.

感謝大家今天抽出時間和關注。對我們來說這是一個艱難的季度。我會告訴你，當我回顧我們在這段時期所經歷的巨大影響時，我們認為這裡發生了三件事。一是，我們許多電商從業者所經歷的新冠肺炎疫情「長鞭」正在發揮作用。所以它就要結束了。所以我們不會發生這種事。我們希望我們不會遇到這樣的問題。我們擔心更大的宏觀環境仍然對客戶的薪水產生影響，因為這些客戶的幾年來由於復甦計劃而擁有很大的可自由支配的支出能力。我們仍然擔心他們。

That's why Tom spoke about the work we're doing to broaden our product lines and prices both, more attractive and higher end for our higher end customers who seem to be weathering the storm quite well. And frankly, we're disappointed in our own execution this quarter and the first two quarters of the fiscal year for us, the OMS issue should never have happened. We're embarrassed by it. We're very disappointed by it. And as Tom and James both mentioned, we're doing everything we can to make sure it never happens again, that these issues are fixed and that we do everything we can to do the right thing for the customers that were impacted by this. Yes, we have $7 million very happy customers, but even a few 1,000 customers that were hurt, negatively impacted by this bothers the heck out of us and we'll do everything we can to make it right. So, thanks for your interest, your attention. We look forward to further discussions with you when you, when you reach out. Thanks so much.

這就是為什麼湯姆談到我們正在做的工作，以擴大我們的產品線和價格，以便為我們的高端客戶提供更具吸引力和更高端的產品，他們似乎已經很好地經受住了這場風暴。坦白說，我們對本季以及本財年前兩個季度的執行情況感到失望，OMS 問題本不應該發生。我們對此感到很尷尬。我們對此感到非常失望。正如湯姆和詹姆斯都提到的，我們正在竭盡全力確保這種情況不再發生，確保這些問題得到解決，並盡一切努力為受此影響的客戶做正確的事情。是的，我們有價值 700 萬美元的非常滿意的客戶，但即使只有幾千名客戶受到了傷害，受到了負面影響，這也讓我們非常困擾，我們將竭盡全力糾正錯誤。所以，感謝您的關注與關注。當您聯繫我們時，我們期待與您進一步討論。非常感謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。