Floor & Decor Holdings Inc (FND) 2024 Q2 法說會逐字稿

Greetings.

問候。

And welcome to the Floor & Decor Holdings, Inc. second quarter 2024 conference call.

歡迎參加 Floor & Decor Holdings, Inc. 2024 年第二季電話會議。

At this time, all participants are in a listen-only mode.

此時，所有參與者都處於只聽模式。

A question-and-answer session will follow the formal presentation.

正式演講後將舉行問答環節。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I would now like to turn the conference over to your host, Wayne Hood, Senior Vice President of Investor Relations.

現在我想將會議交給主持人、投資者關係高級副總裁韋恩胡德 (Wayne Hood)。

Thank you, Operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

Welcome to Floor & Decor's fiscal 2024 second quarter earnings conference call.

歡迎參加 Floor & Decor 2024 財年第二季財報電話會議。

Joining me on our call today are Tom Taylor, Chief Executive Officer; Trevor Lang, President; and Bryan Langley, Executive Vice President and Chief Financial Officer.

與我一起參加今天電話會議的還有執行長湯姆泰勒 (Tom Taylor)；特雷弗·朗，總裁；以及執行副總裁兼財務長 Bryan Langley。

Before we start, I want to remind everyone of the company's Safe Harbor language.

在開始之前，我想提醒大家注意公司的安全港語言。

Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risk and uncertainties.

本次電話會議和網路廣播中發表的評論包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，這些陳述存在風險和不確定性。

Any statement that refers to expectations, projections or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement.

任何涉及未來事件的預期、預測或其他特徵的聲明，包括財務預測或未來市場狀況，均屬於前瞻性聲明。

The company's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings.

該公司未來的實際業績可能因任何原因與此類前瞻性聲明中表達的結果存在重大差異，包括其向美國證券交易委員會提交的文件中列出的結果。

Floor & Decor assumes no obligation to update any such forward-looking statements.

Floor & Decor 不承擔更新任何此類前瞻性聲明的義務。

Please also note that past performance or market information is not a guarantee of future results.

另請注意，過去的表現或市場資訊並不能保證未來的結果。

During this conference call, the company will discuss non-GAAP financial measures as defined by SEC Regulation G. We believe non-GAAP disclosures enable investors to understand better our core operating performance on a comparable basis between periods.

在本次電話會議期間，公司將討論 SEC G 條例定義的非 GAAP 財務指標。

A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on our investor relations website at ir.flooranddecor.com. A recorded replay of this call and related materials will be available on our investor relations website.

這些非 GAAP 指標與最直接可比較的 GAAP 財務指標的調整可以在收益新聞稿中找到，該新聞稿可在我們的投資者關係網站 ir.flooranddecor.com 上找到。本次電話會議的錄音重播和相關資料將在我們的投資者關係網站上提供。

Thank you, Wayne, and everyone for joining us on our fiscal 2024 second quarter earnings conference call.

感謝 Wayne 和大家參加我們的 2024 財年第二季財報電話會議。

During today's call, Trevor and I will discuss some of our fiscal 2024 second quarter earnings highlights.

在今天的電話會議上，特雷弗和我將討論我們 2024 財年第二季的一些獲利亮點。

Then Bryan will provide a more in-depth review of our second quarter financial performance and share our thoughts about some of our updated outlook for fiscal 2024.

然後 Bryan 將對我們第二季的財務表現進行更深入的回顧，並分享我們對 2024 財年最新展望的看法。

Our fiscal 2024 second quarter total and comparable store sales were modestly below our expectations.

我們 2024 財年第二季的總銷售額和可比商店銷售額略低於我們的預期。

However, our gross margin rate exceeded our expectations, which coupled with prudent expense management helped mitigate most of the impact of weak sales.

然而，我們的毛利率超出了我們的預期，加上審慎的費用管理有助於減輕銷售疲軟的大部分影響。

As a result, we were able to report fiscal 2024 second quarter diluted earnings per share of $0.52, compared with $0.66 in the same period last year.

因此，我們報告的 2024 財年第二季攤薄每股收益為 0.52 美元，去年同期為 0.66 美元。

We and our industry continue to contend with monetary policy affecting the housing market and repair and remodeling spending, including ongoing soft demand for large project discretionary hard surface flooring.

我們和我們的行業繼續應對影響房地產市場以及維修和改造支出的貨幣政策，包括對大型專案可選硬表面地板的持續疲軟需求。

Existing home sales have now declined year-over-year for almost three years.

近三年來，現房銷售量逐年下降。

In the month of June, existing home sales declined 5.4% to a seasonally adjusted annual rate of $3.89 million, the lowest level since December 2023 and one of the lowest readings in 40 years.

6 月份，成屋銷售下降 5.4%，經季節性調整後的年率為 389 萬美元，為 2023 年 12 月以來的最低水平，也是 40 年來的最低讀數之一。

Housing affordability remains a hurdle for most buyers given elevated mortgage rates and record high home prices.

鑑於抵押貸款利率上升和房價創歷史新高，住房負擔能力仍然是大多數買家的障礙。

Therefore, we are not seeing the resurgence in hard surface flooring demand that we had expected and believe some sustained mortgage interest rate relief is needed to improve existing home sales and flooring demand.

因此，我們沒有看到我們預期的硬面地板需求復甦，並認為需要持續的抵押貸款利率減免來改善現有房屋銷售和地板需求。

Our revised fiscal 2024 sales and earnings outlook provided in today’s press release reflects this muted market environment.

我們在今天的新聞稿中提供的修訂後的 2024 財年銷售和盈利前景反映了這種低迷的市場環境。

We understand the short-term challenges current market conditions pose and are adapting our strategies accordingly.

我們了解當前市場狀況帶來的短期挑戰，並正在相應地調整我們的策略。

We remain committed to executing strategies that we expect to help us continue to grow our market share while diligently working to manage our profitability and maintaining a strong balance sheet.

我們仍然致力於執行我們希望幫助我們繼續擴大市場份額的策略，同時努力管理我們的盈利能力並保持強勁的資產負債表。

We opened five new warehouse format stores in the second quarter of fiscal 2024, ending with 230 warehouse stores and five design studios compared with 203 warehouse stores and five design studios in the same period last year.

我們在 2024 財年第二季開設了 5 家新的倉儲式商店，最終擁有 230 家倉儲式商店和 5 家設計工作室，而去年同期為 203 家倉儲式商店和 5 家設計工作室。

For the full fiscal 2024 year, we now plan to open 30 new warehouse stores compared with our prior expectation of 30 to 35 stores.

在 2024 財年全年，我們現在計劃開設 30 家新倉儲店，而先前的預期為 30 至 35 家。

Looking forward to fiscal 2025 and considering current market conditions, we believe it is prudent to slow our new store opening pace to approximately 25 new warehouse stores.

展望 2025 財年並考慮到當前的市場狀況，我們認為將新店開業速度放緩至約 25 家新倉儲店是謹慎的做法。

We are pivoting most of the new store openings to larger existing markets where our brand awareness is higher.

我們將大部分新開店轉向更大的現有市場，在那裡我們的品牌知名度更高。

We believe this increases the likelihood of successful store openings and a challenging housing backdrop.

我們相信這會增加成功開店的可能性，並應對充滿挑戰的住房環境。

In fiscal 2025, we intend to focus on opening warehouse stores with the highest potential for success in this weak environment, thus maximizing our return on capital.

到 2025 財年，我們打算專注於在當前疲軟的環境中開設最有成功潛力的倉儲店，以最大限度地提高我們的資本回報率。

As Bryan will discuss in more detail, we are using this period as an opportunity to better align sales projections and capital spending growth within the current environment.

正如布萊恩將更詳細地討論的那樣，我們利用這段時期作為一個機會，在當前環境下更好地調整銷售預測和資本支出成長。

These actions have enabled us to reduce our fiscal 2025 capital investment per new store and increase the expected return for this class of stores by more than 200 basis points.

這些行動使我們能夠減少 2025 財年每家新店的資本投資，並將此類商店的預期回報提高 200 個基點以上。

As a reminder, most of the growth in capital spending per new store over the past few years reflects significant industry-wide increases in new store construction costs, a strategic decision to increase the number of self-development projects, which raised capital spending per store but lowered rent, and our entry into the Northeast where all costs are higher.

需要提醒的是，過去幾年每家新店資本支出的增長大部分反映了全行業新店建設成本的大幅增長，這是增加自主開發項目數量的戰略決策，從而提高了每家商店的資本支出但租金降低了，而且我們進入了東北，那裡的所有成本都更高。

Our long-term goal of operating 500 stores is supported by our ability to open stores in large, medium and smaller single store markets across the United States to maximize our market share and profitability.

我們經營 500 家商店的長期目標是透過我們在美國大、中、小型單店市場開設商店的能力來支持的，以最大限度地提高我們的市場份額和盈利能力。

We believe the slope and timeline of reaching 500 stores will be influenced by when we return to a historical normal level of existing home sales.

我們相信，達到 500 家商店的斜率和時間表將受到現房銷售何時恢復到歷史正常水平的影響。

We are fortunate to have a portfolio of store sizes that we can open to fit market needs ranging from 55,000 square feet to 80,000 square feet warehouse stores.

我們很幸運擁有一系列商店規模組合，可以開設從 55,000 平方英尺到 80,000 平方英尺的倉庫店以滿足市場需求。

Our ability to successfully operate this range of store sizes is underpinned by executing a local merchandising strategy at scale.

我們成功經營這種規模商店的能力是透過大規模執行本地行銷策略來支撐的。

Once we determine the market potential and store size, we micro-merchandise a targeted assortment for each store with input from our Regional Merchants, Chief Executive Merchants or Store Managers, and market analogs to optimize sales and inventory productivity.

一旦我們確定了市場潛力和商店規模，我們就會根據區域商家、執行長商家或商店經理以及市場類似人員的意見，為每家商店進行有針對性的微型商品銷售，以優化銷售和庫存效率。

We are not peanut butter spreading our assortments across the country.

我們並不是在全國各地推廣我們的花生醬產品。

In fact, we see further opportunities for customer segmentation to drive assortment decisions to widen our competitive moat.

事實上，我們看到了更多客戶細分的機會，可以推動分類決策，從而擴大我們的競爭護城河。

In smaller single store markets where our annualized sales per store could be less than larger markets, we are able to implement less costly labor and new store construction models.

在較小的單店市場中，我們每店的年銷售額可能低於較大的市場，我們能夠實施成本較低的勞動力和新店建設模式。

We can reduce our store footprint and SKUs without compromising our merchandising assortments or the customer experience.

我們可以減少商店佔地面積和 SKU，而不會影響我們的商品種類或客戶體驗。

Because these markets are generally less expensive than larger markets, it’s easier to operate.

由於這些市場通常比大型市場便宜，因此更容易運作。

We believe we can generate internal rates of return that exceed our weighted average cost of capital, making them attractive markets.

我們相信，我們能夠產生超過加權平均資本成本的內部報酬率，使它們成為一個有吸引力的市場。

We are pleased that the market demographics for these potential stores we plan to open in fiscal 2024 and 2025 have higher average household incomes and higher ownership rates than our 2023 store class.

我們很高興我們計劃在 2024 財年和 2025 財年開設的這些潛在商店的市場人口統計數據比我們 2023 年的商店類別具有更高的平均家庭收入和更高的擁有率。

Collectively, we expect our planned openings to further solidify our market share and position us for strong growth when industry fundamentals improve.

總的來說，我們預計計劃的開業將進一步鞏固我們的市場份額，並為我們在行業基本面改善時實現強勁增長奠定基礎。

Before turning the call over to Trevor, I want to express our pride in our teams.

在將電話轉給特雷弗之前，我想表達我們對我們團隊的自豪。

Their hard work enables us to sustain customer service scores and engagement that are near all-time highs and to successfully manage our profitability, liquidity, inventory and capital spending during this challenging period.

他們的辛勤工作使我們能夠維持接近歷史最高水準的客戶服務分數和參與度，並在這個充滿挑戰的時期成功管理我們的獲利能力、流動性、庫存和資本支出。

By doing so, we can position ourselves to continue growing our market share and make significant strategic growth investments towards our long-term goal of operating 500 warehouse stores in the United States.

透過這樣做，我們可以繼續擴大市場份額，並為實現在美國經營 500 家倉儲店的長期目標進行重大策略性成長投資。

We currently intend to re-accelerate our new store opening cadence, as well as generate healthy operating margin expansion and earnings growth in a normalized environment.

我們目前打算重新加快新店開幕節奏，並在正常化的環境中實現健康的營業利潤率擴張和獲利成長。

Let me now turn the call over to Trevor.

現在讓我把電話轉給特雷弗。

Thanks, Tom.

謝謝，湯姆。

I also want to express my gratitude to our associates for their hard work and dedication to serving our customers.

我也要向我們的員工表示感謝，感謝他們的辛勤工作和為客戶服務的奉獻精神。

Despite current market conditions, we are in a favorable position due to significant investments we have made over the last decade to build our business model that has significant competitive advantages.

儘管當前的市場狀況不佳，但由於我們在過去十年中進行了大量投資來建立具有顯著競爭優勢的業務模式，因此我們處於有利地位。

These investments continue to differentiate our results versus the competition.

這些投資繼續使我們的業績在競爭中脫穎而出。

Many of you may notice that some of our competitors face significant challenges in the current market environment.

你們中的許多人可能會注意到，我們的一些競爭對手在當前的市場環境中面臨重大挑戰。

Fortunately, we have a strong balance sheet and cash flow that allows us to continue to make investments in our associates, our new stores, merchandising, technology and distribution centers.

幸運的是，我們擁有強大的資產負債表和現金流，使我們能夠繼續對我們的員工、新店、銷售、科技和配送中心進行投資。

Thus, we believe we can continue to grow our market share further in both the short- and long-term as we have done for almost 25 years.

因此，我們相信我們可以像近 25 年來所做的那樣，在短期和長期內繼續進一步擴大我們的市場份額。

As Tom mentioned, we expect to generate healthy operating margin expansion and earnings growth in a normal housing environment.

正如湯姆所提到的，我們預計在正常的住房環境下實現健康的營業利潤率擴張和獲利成長。

Turning to second quarter fiscal 2024, our total sales declined by 0.2% to $1,133,100,000 and comparable store sales decreased 9% from the same period last year.

2024 財年第二季度，我們的總銷售額下降 0.2%，至 1,133,100,000 美元，可比商店銷售額較去年同期下降 9%。

Monthly, comparable store sales fell 8.9% in April, 9.7% in May, and 8.6% in June.

按月計算，4 月可比商店銷售額下降 8.9%，5 月下降 9.7%，6 月下降 8.6%。

Our fiscal 2024 third quarter to-date comparable store sales declined 7.7% from the same period last year.

我們的 2024 財年第三季迄今的可比商店銷售額比去年同期下降了 7.7%。

In the second quarter, like the first quarter of fiscal 2024, comparable store sales in the West division were better than our company average.

在第二季度，與 2024 財年第一季一樣，西部部門的可比商店銷售額優於我們公司的平均水平。

As a reminder, our West division was the first to experience softening sales in 2022 and has been less impacted by cannibalization than other divisions due to fewer new store openings.

提醒一下，我們的西部部門是 2022 年第一個經歷銷售疲軟的部門，由於新店開張較少，與其他部門相比，受到蠶食的影響較小。

Comparable store sales were similar in the East and South divisions.

東部和南部地區的可比商店銷售額相似。

Let me comment about our comparable stores’ average ticket and transaction trends.

讓我評論一下我們的可比較商店的平均票價和交易趨勢。

In the second quarter fiscal 2024, our average ticket decreased by 4.3%, compared to the same period last year in line with the 4.2% decline in the first quarter of fiscal 2024.

2024 財年第二季度，我們的平均票價與去年同期相比下降了 4.3%，與 2024 財年第一季 4.2% 的降幅一致。

Comparable store transactions declined by 4.9%, compared to a 7.7% decline in the first quarter of 2024.

同店交易額下降了 4.9%，而 2024 年第一季則下降了 7.7%。

These trends mainly stem from macroeconomic housing challenges and customer purchasing less square footage and undertaking smaller projects.

這些趨勢主要源自於宏觀經濟住宅挑戰以及客戶購買較少面積並進行較小專案。

Turning to our fiscal 2024 second quarter sales trends by merchandise categories, comparable store sales and decorative accessories, installation materials, adjacent categories, wood, stone and tile were all at or better than the overall comparable store sales which declined by 9%.

轉向我們按商品類別劃分的2024 財年第二季銷售趨勢，可比商店銷售額和裝飾配件、安裝材料、相鄰類別、木材、石材和瓷磚均等於或好於整體可比商店銷售額，後者下降了9%。

We are pleased that our strategic merchandising efforts are successfully driving sales towards our better and best price points which offer industry-leading innovation, trends and styles at everyday low prices.

我們很高興我們的策略行銷工作成功地將銷售推向更好和最好的價格點，以每日低價提供業界領先的創新、趨勢和款式。

Furthermore, these strategies continue to lead to a sales mix shift to higher margin products enhancing our profitability.

此外，這些策略繼續導致銷售組合轉向利潤率更高的產品，從而提高了我們的獲利能力。

We are also making continued strides in our strategy of diversifying the country of origin of our products and reducing our exposure to China.

我們也在產品原產國多元化和減少對中國的投資的策略方面不斷取得進展。

As a reminder, in fiscal 2023, China accounted for approximately 25% of the products we sold, compared with approximately 50% in fiscal 2018.

需要提醒的是，2023 財年，中國約占我們銷售產品的 25%，而 2018 財年這一比例約為 50%。

We expect a meaningful reduction in fiscal 2024 from our continuing diversification strategies.

我們預計 2024 財年我們持續的多元化策略將大幅削減開支。

Turning my comments to our connected customer pillar of growth, we remain pleased that our connected customer strategies continue to drive engagement and growth with our homeowner and Pro customers.

將我的評論轉向我們的互聯客戶成長支柱，我們仍然很高興我們的互聯客戶策略繼續推動我們的房主和專業客戶的參與和成長。

Our second quarter connected customer sales increased by approximately 1% from the same period last year, largely due to growth in transactions.

我們第二季的互聯客戶銷售額比去年同期成長了約 1%，這主要是由於交易量的成長。

Consequently, connected customer sales accounted for 19.5% of the second quarter sales, compared with 19.1% in the same period last year and 19% in the first quarter of 2024.

因此，互聯客戶銷售額佔第二季銷售額的19.5%，去年同期為19.1%，2024年第一季為19%。

As a reminder, we continue to observe that customers who visit our stores and engage with our websites to substantially more than single channel customers.

提醒一下，我們繼續觀察到造訪我們商店並與我們網站互動的客戶遠遠多於單一通路客戶。

Therefore, we are continuing to integrate our processes and technology solutions to further develop a seamless in-store and personalized online experience.

因此，我們正在繼續整合我們的流程和技術解決方案，以進一步開發無縫的店內和個人化的線上體驗。

We are building on these strategies with a focus on driving organic traffic growth to our website and further optimizing the customer search experience.

我們正在這些策略的基礎上，重點是推動我們網站的自然流量成長，並進一步優化客戶搜尋體驗。

We plan to achieve this by improving our website speed and the quality of website search, adding inspiring and user-generated content for customers and refining our online merchandise process to increase efficiency.

我們計劃透過提高網站速度和網站搜尋品質、為客戶添加鼓舞人心的用戶生成內容以及完善線上商品流程以提高效率來實現這一目標。

Turning to our design services, our design teams are focused on delivering an elevated design experience by working closely with our Pro desk to build relationships with our contractors, selling them entire projects to grow the basket size and following up on high-value sales opportunities.

談到我們的設計服務，我們的設計團隊致力於透過與我們的專業服務台密切合作來提供更高的設計體驗，與我們的承包商建立關係，向他們出售整個專案以擴大籃子規模並跟進高價值的銷售機會。

These strategies contributed to an improved close rates and year-over-year growth in second quarter sales from design services.

這些策略有助於提高設計服務的成交率和第二季銷售額的年成長。

As a result, our fiscal 2024 second quarter design sales penetration increased meaningfully from the same period last year.

因此，我們 2024 財年第二季的設計銷售滲透率較去年同期大幅成長。

Turning my comments to Pros, we are pleased second quarter sales to Pros improved sequentially and year-over-year accounting for approximately 48% of retail sales.

談到我對專業人士的評論，我們很高興第二季度專業人士的銷售額環比和同比有所改善，約佔零售額的 48%。

As discussed in prior earnings calls, we are growing our market share with Pros by leveraging our Pro dashboards and CRM tools to drive engagement with new, inactive and active Pros.

正如先前的財報電話會議中所討論的，我們正在透過利用我們的專業人士儀表板和CRM 工具來推動與新的、不活躍和活躍的專業人士的互動，從而擴大我們在專業人士中的市場份額。

We have added tools to better measure the effectiveness of our Pro sales managers’ new Pro acquisition efforts.

我們添加了工具來更好地衡量專業銷售經理新的專業採購工作的有效性。

We continue investing in quarterly Pro roundtables, listening to our Pro customers and adapting our tools based on what we learn to drive better engagement.

我們繼續投資於季度專業圓桌會議，傾聽專業客戶的意見，並根據我們學到的知識調整我們的工具，以提高參與度。

We also have invested in rolled out payment technology to allow our Pros to authorize payment remotely, removing friction in how our pros do business with us.

我們還投資推出了支付技術，使我們的專業人士能夠遠端授權付款，消除了專業人士與我們開展業務時的摩擦。

We continue to deepen our relationship with Pros by partnering with trade associations to host educational events.

我們透過與產業協會合作舉辦教育活動，持續加深與專業人士的關係。

In the second quarter of fiscal 2024, we hosted 27 National Tower Contractor Association and eight National Wood Flooring Association education events, training approximately 533 Pros.

2024 財年第二季度，我們舉辦了 27 場全國塔式承包商協會和 8 場全國木地板協會教育活動，培訓了約 533 名專業人士。

We remain excited about hosting approximately 145 educational events in 2024, which we believe is industry-leading in flooring.

我們仍然對 2024 年舉辦約 145 場教育活動感到興奮，我們相信這些活動在地板行業中處於領先地位。

Importantly, we see significant lift in sales from pros attending these events.

重要的是，我們看到參加這些活動的專業人士的銷售額顯著提升。

Furthermore, we continue to partner with native advertising platforms within banks’ digital channels, providing a practical and cost-efficient way to successfully drive new Pro acquisitions.

此外，我們持續與銀行數位管道內的原生廣告平台合作，提供實用且經濟高效的方式來成功推動新的 Pro 收購。

Finally, we are pleased that our sales from our regional account managers in the second quarter of fiscal 2024 exceeded our expectations.

最後，我們很高興我們的區域客戶經理在 2024 財年第二季的銷售額超出了我們的預期。

We ended the second quarter with 71 regional account managers, compared with 61 at the end of the second quarter of fiscal 2023.

截至第二季末，我們有 71 位區域客戶經理，而 2023 財年第二季末我們有 61 位區域客戶經理。

Let’s now discuss our commercial business.

現在讓我們討論我們的商業業務。

We are pleased Spartan Surfaces’ second quarter sales exceeded our expectations.

我們很高興 Spartan Surfaces 第二季度的銷售額超出了我們的預期。

Notably, June represented the best month in sales and profitability since our acquisition in 2021.

值得注意的是，6 月是自 2021 年收購以來銷售額和獲利能力最好的月份。

As discussed on our prior earnings calls, Spartan continues to progress in its diversification strategies and re-indexing to healthcare, education, and hospitality.

正如我們之前的財報電話會議中所討論的那樣，斯巴達在其多元化策略和醫療保健、教育和酒店業重新索引方面繼續取得進展。

In 2024, we plan to continue to drive sales and market share growth through organic rep growth and boosting rep productivity.

2024 年，我們計劃透過代表有機成長和提高代表生產力繼續推動銷售和市場份額成長。

We ended the second quarter of fiscal 2024 with 71 Spartan reps.

截至 2024 財年第二季度，我們有 71 位斯巴達代表。

In closing, we remain confident that we have the right people, strategies and business model to navigate this challenging macroeconomic environment.

最後，我們仍然相信我們擁有合適的人才、策略和商業模式來應對這個充滿挑戰的宏觀經濟環境。

Thank you, Tom and Trevor.

謝謝你們，湯姆和特雷弗。

I am incredibly proud of how our teams have stepped up to manage our profitability, balance sheet and inventory in fiscal 2024.

我對我們的團隊如何加強管理 2024 財年的獲利能力、資產負債表和庫存感到非常自豪。

I am particularly pleased with how we are growing our market share with Pros, which accounted for approximately 48% of retail sales in the second quarter of fiscal 2024.

我對我們如何擴大 Pros 市佔率感到特別滿意，Pros 約佔 2024 財年第二季零售額的 48%。

Additionally, our second quarter results underscore how we continue to execute our plans to grow our gross margin rate, diligently manage expenses and generate free cash flow in this muted market environment.

此外，我們第二季的業績突顯了我們如何繼續執行我們的計劃，以提高毛利率，努力管理費用並在這個低迷的市場環境中產生自由現金流。

Let me now discuss some of the changes among the significant line items in our second quarter income statement, balance sheet and statement of cash flows.

現在讓我討論第二季損益表、資產負債表和現金流量表中重要項目的一些變化。

Then I will discuss our outlook for the remainder of the year.

然後我將討論我們對今年剩餘時間的展望。

Our fiscal 2024 second quarter gross margin rate increased by 110 basis points to 43.3% from 42.2% the same period last year, exceeding our expectations and improving by 50 basis points from 42.8% in the first quarter of fiscal 2024.

我們的2024財年第二季毛利率從去年同期的42.2%成長了110個基點至43.3%，超出了我們的預期，比2024財年第一季的42.8%提高了50個基點。

The year-over-year increase in gross margin rate is primarily due to favorable supply chain costs.

毛利率年增率主要得益於有利的供應鏈成本。

Our fiscal 2024 second quarter selling and store operating expenses increased by 9.6% to $341.4 million from the same period last year.

我們的 2024 財年第二季銷售和商店營運費用比去年同期成長 9.6%，達到 3.414 億美元。

The growth in selling and store operating expenses is primarily driven by an increase of $39.1 million from operating 27 additional warehouse stores compared to the same period last year and $1.8 million at Spartan Surfaces, partially offset by a decrease of $10.9 million at our comparable stores.

銷售和商店營運費用的成長主要是由於與去年同期相比，新增 27 家倉儲商店增加了 3,910 萬美元，Spartan Surfaces 增加了 180 萬美元，部分被我們可比商店減少 1,090 萬美元所抵消。

As a percentage of sales, selling and store operating expenses increased by approximately 270 basis points to 30.1% from the same period last year.

銷售和門市營運費用佔銷售額的百分比較去年同期增加約 270 個基點至 30.1%。

This expense deleverage is primarily due to the 9.0% decline in our second quarter comparable store sales and new store investments we continue to make to support our growth.

這種費用去槓桿化主要是由於我們第二季度可比商店銷售額下降 9.0%，以及我們為支持成長而繼續進行的新店投資。

Our fiscal 2024 second quarter general and administrative expenses increased by 6.9% to $67.7 million from the same period last year.

我們的 2024 財年第二季一般和管理費用比去年同期成長 6.9%，達到 6,770 萬美元。

The growth in G&A expense was less than we anticipated due to diligently managing our costs and lower than expected incentive compensation.

由於我們努力管理成本且激勵薪酬低於預期，一般管理費用的成長低於我們的預期。

G&A expense deleveraged approximately 50 basis points to 6.0%, primarily due to the 9% decline in our comparable store sales and investments we continue to make to support our store growth.

一般及行政費用去槓桿化約 50 個基點至 6.0%，主要是由於我們的可比商店銷售額下降 9%，以及我們繼續為支持商店增長而進行的投資。

Our fiscal 2024 second quarter pre-opening expenses increased by 6.5% to $10.6 million from the same period last year.

我們的 2024 財年第二季開業前費用較去年同期成長 6.5%，達到 1,060 萬美元。

The increase primarily reflects higher store relocation expenses compared to the prior year.

這一增長主要反映了與前一年相比更高的商店搬遷費用。

Our fiscal 2024 second quarter net interest expense decreased 77.1% to $0.7 million from $2.9 million the same period last year.

我們的 2024 財年第二季淨利息支出從去年同期的 290 萬美元下降 77.1% 至 70 萬美元。

The reduction in interest expense is due to a decrease in average borrowings under the ABL facility and an increase in interest capitalized, partially offset by interest rate increases on outstanding debt and lower interest income from our interest cap derivative contracts.

利息支出的減少是由於 ABL 工具下的平均借款減少和資本化利息增加，部分被未償債務利率上升和利息上限衍生性商品合約利息收入減少所抵銷。

Our fiscal 2024 second quarter effective tax rate decreased to 19.8% from 22.4% in the same period last year, primarily due to increases in excess tax benefits related to stock-based compensation awards, partially offset by limitations on deductions for compensation to certain employees.

我們的 2024 財年第二季有效稅率從去年同期的 22.4% 降至 19.8%，這主要是由於與股票薪酬獎勵相關的超額稅收優惠增加，部分被某些員工薪酬扣除限制所抵銷。

Our fiscal 2024 second quarter adjusted EBITDA declined 10.4% to $136.9 million, primarily due to expense deleverage from the decline in our comparable store sales.

我們的 2024 財年第二季調整後 EBITDA 下降 10.4% 至 1.369 億美元，主要是因為我們可比商店銷售額下降導致費用去槓桿化。

Depreciation and amortization increased 17.6%, contributing to net income declining by 20.7% to $56.7 million and diluted earnings per share of $0.52, a decline of 21.2% from the same period last year.

折舊及攤銷成長17.6%，導致淨利下降20.7%至5,670萬美元，稀釋後每股收益為0.52美元，較去年同期下降21.2%。

Moving on to our balance sheet and cash flow.

繼續我們的資產負債表和現金流。

We continue to maintain a strong balance sheet which allows us to continue to firmly grow within our existing capital structure even during a period of industry contraction.

我們持續保持強勁的資產負債表，這使我們即使在產業收縮時期也能在現有資本結構內繼續穩健成長。

We ended the second quarter with $772.1 million of unrestricted liquidity consisting of $138.1 million in cash and cash equivalents and $634.0 million available for borrowing under the ABL facility.

截至第二季末，我們擁有 7.721 億美元的無限制流動性，其中包括 1.381 億美元的現金和現金等價物以及 6.340 億美元可根據 ABL 貸款融資。

Our inventory as of June 27, 2024 decreased by 11.5% to $1.0 billion from the same period last year and decreased by 6.2% from the end of fiscal 2023.

截至 2024 年 6 月 27 日，我們的庫存較去年同期下降 11.5%，至 10 億美元，較 2023 財年末下降 6.2%。

Let me briefly comment on the recent rise in spot rates for ocean containers.

讓我簡單評論一下近期海運貨櫃即期運價的上漲。

As a reminder, we strategically enter into long-term contracts with our ocean carrier partners which provide us with dedicated capacity at a contracted rate and the rising spot market rates are not expected to have a material impact on us in fiscal 2024.

謹此提醒，我們策略性地與海運承運商合作夥伴簽訂了長期合同，這些合作夥伴以合同費率為我們提供專用運力，並且現貨市場費率的上漲預計不會對我們2024 財年產生重大影響。

Let me now discuss how we were thinking about our updated outlook for fiscal 2024 full year.

現在讓我討論一下我們如何考慮 2024 財年全年的最新展望。

Our fiscal 2024 sales are expected to be in the range of $4,400 million to $4,490 million, compared with our prior guidance of $4,600 million to $4,770 million.

我們 2024 財年的銷售額預計在 44 億美元至 44.9 億美元之間，而我們先前的指引為 46 億美元至 47.7 億美元。

Comparable store sales are estimated to decline 6.5% to 8.5%, compared with our prior guidance of down 2% to 5.5%.

可比商店銷售額預計將下降 6.5% 至 8.5%，而我們先前的指導為下降 2% 至 5.5%。

The midpoint of this guidance assumes existing home sales and business trends remain relatively unchanged from current levels for the remainder of the year.

該指引的中點假設今年剩餘時間內現有房屋銷售和業務趨勢與當前水準保持相對不變。

We expect our comparable store sales to sequentially improve throughout the remainder of fiscal 2024 on both the high and low end of guidance primarily due to easier sales comparisons.

我們預計，在 2024 財年剩餘時間內，我們的可比商店銷售額將在指導的高端和低端連續改善，這主要是由於銷售比較更容易。

As Tom mentioned, our third quarter to-date comparable store sales declined 7.7%.

正如 Tom 所提到的，我們第三季迄今的可比商店銷售額下降了 7.7%。

We estimate our third quarter to-date comparable store sales were adversely impacted by approximately 70 basis points from Hurricane Beryl.

我們估計第三季迄今的可比較商店銷售額受到颶風 Beryl 約 70 個基點的不利影響。

The primary impact of the July storm was wind damage and we are not anticipating an offsetting increase in demand as we have experienced following other storm events involving substantial flooding.

七月風暴的主要影響是風害，我們預計需求不會增加，因為我們經歷了其他涉及嚴重洪水的風暴事件。

Gross margin is expected to be approximately 43.2% to 43.3%.

毛利率預計約43.2%至43.3%。

Depreciation and amortization expense is expected to be approximately $235 million, compared with our prior guidance of $230 million.

折舊和攤銷費用預計約為 2.35 億美元，而我們先前的指引為 2.3 億美元。

Net interest expense is expected to be approximately $6 million to $7 million, compared with prior guidance of $9 million to $11 million.

淨利息支出預計約為 600 萬至 700 萬美元，而先前的指引為 900 萬至 1,100 萬美元。

Tax rate is expected to be approximately 18%, compared with our prior guidance of 20%.

稅率預計約為 18%，而我們先前的指導值為 20%。

Adjusted EBITDA is expected to be approximately $480 million to $505 million, compared with our prior guidance of $520 million to $560 million.

調整後 EBITDA 預計約為 4.8 億至 5.05 億美元，而我們先前的指引為 5.2 億至 5.6 億美元。

Diluted earnings per share are estimated to be in the range of $1.55 to $1.75, compared with our prior guidance of $1.75 to $2.05. Diluted weighted average shares outstanding of approximately 108 million shares, compared with our prior guidance of 109 million shares.

稀釋每股收益預計在 1.55 美元至 1.75 美元之間，而我們先前的指引為 1.75 美元至 2.05 美元。稀釋加權平均已發行股數約為 1.08 億股，而我們先前的指引為 1.09 億股。

Capital expenditures are expected to be approximately $360 million to $410 million, compared with our prior guidance of $400 million to $475 million.

資本支出預計約為 3.6 億至 4.1 億美元，而我們先前的指引為 4 億至 4.75 億美元。

The decline in capital expenditures is due to the reduction in new warehouse store openings to 30 stores from 30 to 35 stores as per our prior guidance.

資本支出下降的原因是，根據我們先前的指導，新開設的倉儲店數量從 30 家減少到 35 家，減少到 30 家。

We are currently planning to open one distribution center in 2025 located in Seattle, Washington.

我們目前計劃於 2025 年在華盛頓州西雅圖開設一個配送中心。

We are strategically pushing the opening of our Baltimore distribution center to 2026 as the current industry environment does not require additional capacity.

由於目前的產業環境不需要額外的產能，我們策略性地將巴爾的摩配送中心的開幕時間延後到 2026 年。

Additionally, we are benefiting from our inventory optimization efforts.

此外，我們也受惠於庫存優化工作。

We can quickly bring this capacity on as demand improves.

隨著需求的改善，我們可以快速啟用這種能力。

In the second half of fiscal 2024, we are beginning a multiyear investment to upgrade portions of our Enterprise Resource Planning System that will replace our existing core financial and merchandising systems.

在 2024 財年下半年，我們將開始一項多年投資，以升級部分企業資源規劃系統，以取代我們現有的核心財務和銷售系統。

We expect this investment to have a minimal impact on our fiscal 2024 earnings and is incorporated into our earnings and capital expenditures guidance.

我們預計這項投資對我們 2024 財年收益的影響最小，並已納入我們的收益和資本支出指引中。

We continue making green investments that we believe position us for accelerated sales and market share and strong earnings growth when industry fundamentals improve.

我們繼續進行綠色投資，我們相信，當行業基本面改善時，這將使我們能夠加速銷售和市場份額以及強勁的盈利增長。

I want to thank our associates and vendor partners for their dedication and contributions to serving our customers every day.

我要感謝我們的員工和供應商合作夥伴每天為服務客戶所做的奉獻和貢獻。

(Operator Instructions)

（操作員說明）

Zach Fadem with Wells Fargo.

法德姆 (Zach Fadem) 與富國銀行 (Wells Fargo) 合作。

Hey.

嘿。

Good afternoon.

午安.

So, Tom, on the decision to reduce openings in 2025, how would you frame the go-forward between small format and large format stores?

那麼，Tom，對於 2025 年減少開業的決定，您將如何規劃小型商店和大型商店之間的發展？

And then, given the historical advantage of big stores with depth of assortment, in stocks, job lock quantities, does this edge still hold if you pivot to smaller boxes?

然後，考慮到大商店在品種深度、庫存、工作鎖定數量方面的歷史優勢，如果你轉向更小的盒子，這種優勢是否仍然存在？

Hey, Zach.

嘿，扎克。

So, I'll take the first part of the question first.

所以，我先回答問題的第一部分。

As we looked to the class of 2025, a couple of things.

當我們展望 2025 年畢業生時，有幾件事。

One, we've gone through and taken a large initiative and tried to determine how do we open stores that are less expensive.

第一，我們已經經歷並採取了一項重大舉措，並試圖確定如何開設更便宜的商店。

Our team has done a good job of identifying over $1.5 million of cost benefits that will affect the class of 2025.

我們的團隊出色地確定了將影響 2025 年畢業生的超過 150 萬美元的成本效益。

So, we should be able to get a better return on the store.

所以，我們應該能夠為商店獲得更好的回報。

We’re shooting for more and we’re still working, we’re not done.

我們正在爭取更多，我們仍在努力，我們還沒有完成。

Additionally, we scrubbed the list of the options that we had for 2025 and we selected stores with the greatest chance of success.

此外，我們還清理了 2025 年的選項列表，並選擇了最有可能成功的商店。

More of them are in larger markets in the class of 2025 than we did in the class of 2023.

2025 年，與 2023 年相比，更多的企業進入了更大的市場。

So, we think that gives us a better chance in those larger markets.

因此，我們認為這讓我們在這些更大的市場中有更好的機會。

Our awareness is a bit better.

我們的意識好一點了。

Stores should start off a little bit stronger.

商店一開始應該會更強大一些。

A couple of other things on the class of 2025, and then I’ll talk about the small store in the second part of the question.

關於 2025 年畢業生的其他一些事情，然後我將在問題的第二部分討論小商店。

We’re also purposely back loading the 2025.

我們也特意向後載入了 2025 年版本。

We those stores will more open at the back half of the year.

我們這些商店將在下半年開業更多。

Our hopes are that interest rates are being lowered by that time.

我們希望屆時利率能夠降低。

Macro, starting to see the better side of it so that it gives us some flexibility and we think we’ll be in a better environment where there’s more demand for the category and give those stores a better chance for a successful start.

宏觀，開始看到它更好的一面，這樣它給了我們一些靈活性，我們認為我們將處於一個更好的環境中，對該類別有更多的需求，並為這些商店提供更好的成功起步機會。

So, we are opening smaller stores, it’s a fair point, in smaller markets.

因此，我們正在較小的市場開設較小的商店，這是公平的。

We did that in the class of 2023.

我們在 2023 年畢業生中做到了這一點。

The class of 2023 was approved in 2021.

2023級學生於2021年獲得批准。

Things were a bit different, but we did take a smaller store approach.

情況有點不同，但我們確實採取了較小的商店方式。

The benefits are advantages of broad assortment, in-stock, presentation, having designers, having vignettes, services all remain intact.

好處是種類繁多、庫存充足、展示、有設計師、有小插圖、服務都保持不變。

The majority of the small 55,000 square foot stores are going in markets where the competitive environment is just less.

大多數 55,000 平方英尺的小型商店都進入競爭環境較小的市場。

I mean, it's there's 10 times the amount of competitors in the Dallas, Texas than there is in the Temple, Texas.

我的意思是，德克薩斯州達拉斯的參賽者數量是德克薩斯州坦普爾的 10 倍。

So, when we're opening those small stores, the competitive landscape is different and we feel like our advantages, even in that smaller store for a small market, they hold up to what we've always historically done.

因此，當我們開設這些小商店時，競爭格局是不同的，我們覺得我們的優勢，即使在小市場的小商店中，它們也能保持我們一直以來所做的事情。

So, and the last thing I'd just say about the small markets is, we believe they have the potential to make the same operating margin as the rest of the fleet.

因此，關於小型市場，我要說的最後一件事是，我們相信它們有潛力獲得與其他船隊相同的營運利潤。

They may be able to do less sales volume because it’s smaller markets, but they’re cheaper stores and we should be able to make the same operating margin.

他們的銷售量可能會減少，因為市場較小，但他們的商店更便宜，我們應該能夠獲得相同的營業利潤。

Got it.

知道了。

Appreciate that.

很欣賞這一點。

And then just assuming the lag from rate cut to EHS improvement to comp improvement, could you share your latest recovery timeline and what type of environment do you think you would need to see in order to comp positive in 2025?

然後假設從降息到 EHS 改善再到薪酬改善存在滯後，您能否分享一下您最新的恢復時間表以​​及您認為需要看到什麼類型的環境才能在 2025 年實現積極的薪酬？

Bryan

布萊恩

--?

——？

Hey, Zach.

嘿，扎克。

This is Bryan.

這是布萊恩。

I'll start and then Tom and Trevor can weigh in.

我先開始，然後湯姆和特雷弗可以發表意見。

So, for us, I mean, just to be clear, the midpoint of our guide assumes that trends stay the same from Q2.

因此，對我們來說，我的意思是，為了明確起見，我們指南的中點假設趨勢與第二季度保持相同。

So, we’re assuming basically on a comp basis, we'll have sequential improvement in both the high and low end throughout the back half.

因此，我們基本上假設在比較的基礎上，我們將在整個後半段的高端和低端都有連續的改進。

But the majority of that improvement is mainly due to easier comparisons.

但大部分改進主要是由於更容易進行比較。

So, you’re right, there is a lag that comes to interest rates changing to existing home sales to then where we impact that.

所以，你是對的，現有房屋銷售的利率變化到我們影響它的程度有一個延遲。

We still feel like it's somewhere around zero month to three months.

我們仍然覺得這大約是零個月到三個月。

So it is still a tight correlation whenever we have that.

因此，只要我們有這種關係，它仍然是緊密相關的。

But if there was a rate cut in September, we’ll feel a little bit of that this year.

但如果 9 月降息，今年我們就會感受到一點。

So, to hit the high end of our guidance, things would have to get a little bit better.

因此，為了達到我們指導的上限，情況必須變得更好一些。

So, that's incorporated in there.

所以，它被納入其中。

To hit the low end, things would have to get a little bit worse from where we were in exiting Q2.

為了達到低端，情況必須比第二季退出時的情況變得更糟。

Yeah.

是的。

I mean, the only thing I think I'd add, and we've said it before, we’d like to be in an environment where existing home sales are positive year-over-year.

我的意思是，我想我唯一要補充的是，我們之前已經說過，我們希望處於一個現房銷售同比增長的環境中。

And we think as that turns that there’ll be more flooring demand in the market.

我們認為，隨著這種情況的發生，市場上的地板需求將會增加。

So, there'll be a lag to that and I don’t know when they’ll return.

因此，這會有一個延遲，我不知道他們什麼時候會回來。

I certainly thought interest rates would have come down by now and I thought existing home sales would have been better by now, and that just hasn't happened yet.

我當然認為現在利率會下降，我認為現在的房屋銷售會更好，但這還沒有發生。

So, to Fed say they’re going to lower rates.

因此，聯準會表示他們將降低利率。

We’ll see how the consumer holds up and only time will tell.

我們將看看消費者的承受能力如何，只有時間才能證明一切。

Appreciate the time, guys.

珍惜時間，夥計們。

Christopher Horvers with JPMorgan.

摩根大通的克里斯多福霍弗斯。

Thanks.

謝謝。

Good evening, guys.

晚上好，夥計們。

So, my first question is, can you going back to when there were tariffs and when there was freight, can you just give us a refresh on what happened?

所以，我的第一個問題是，你能回到有關稅和貨運的時候，讓我們回顧一下發生了什麼嗎？

I know there was some gross margin rate pressure, but then there was also inflation and tickets.

我知道存在一些毛利率壓力，但也存在通貨膨脹和門票問題。

So, I guess, can you remind us what happened?

所以，我想，你能提醒我們發生了什麼事嗎？

And the second part of the question is, how do you think it's different this time?

問題的第二部分是，你認為這次有何不同？

It feels like the consumer’s pretty priced out at this point and really elasticity seems to be going up.

感覺此時消費者的價格已經相當高了，而且真正的彈性似乎正在上升。

So, I know it’s a lot of speculation, but any conjecture you could have there would be helpful.

所以，我知道這有很多猜測，但你可能有的任何猜測都會有幫助。

Thank you.

謝謝。

Sure.

當然。

Hey, Chris.

嘿，克里斯。

This is Tom.

這是湯姆。

When tariffs came the last time around, we were heavily dependent on China.

上次徵收關稅時，我們嚴重依賴中國。

We've taken now, when I joined the company, we were over 50% of what we got was out of China.

我們現在已經採取了，當我加入公司時，我們超過 50% 的產品來自中國。

That number’s down to less than 25% today and going down further.

如今，這一數字已降至 25% 以下，並且還在進一步下降。

So, we’ll have less dependency there.

因此，我們對這方面的依賴將會減少。

When it happened, we moved products outside of China to move them to the other parts of the world where we could buy similar products at similar prices.

當這種情況發生時，我們將產品從中國轉移到世界其他地方，在那裡我們可以以相似的價格購買類似的產品。

And then things we couldn't move, we passed that price along to the consumer and they were able to absorb it.

然後，我們無法移動的東西，我們將價格傳遞給消費者，他們能夠吸收它。

What’s different in this time, luckily, we have less, but we're still getting to China to some extent, everyone’s got to get out of China.

這次不同的是，幸運的是，我們擁有的更少，但我們仍然在某種程度上進入中國，每個人都必須離開中國。

It’s things that maybe are only made in China.

這些東西可能只在中國製造。

So, everyone’s going to have to deal with that pressure.

因此，每個人都必須應對這種壓力。

Our merchants are continuing to look for ways to lessen the dependency on it and we'll see how the consumer responds.

我們的商家正在繼續尋找減少對其依賴的方法，我們將看看消費者的反應如何。

My guess is they'll step into a different product within the store.

我的猜測是他們會在商店內購買不同的產品。

If the prices have to go up and they can’t afford it, they’ll step to something else out of our broad assortment.

如果價格必須上漲而他們無力承擔，他們就會從我們廣泛的產品類別中購買其他產品。

Hey.

嘿。

I'll follow up too.

我也來跟進一下

This is Bryan.

這是布萊恩。

The one difference between last time and this time too, so back in 2018 and 2019 was we only passed through the cost.

上次和這次之間的一個差異也是如此，所以在 2018 年和 2019 年，我們只傳遞了成本。

Since 2023 and into 2024, we've actually been able to recapture a lot of that margin as well.

自 2023 年到 2024 年，我們實際上也能夠重新奪回大部分利潤。

So, now we're protecting the margin rate.

所以，現在我們正在保護保證金率。

Last time the margin rate actually went down because we only passed through the cost itself.

上次保證金率實際上下降了，因為我們只轉嫁了成本本身。

Yes.

是的。

Chris, this is Trevor.

克里斯，這是特雷弗。

The last thing

最後一件事

--

--

Okay.

好的。

Chris, I’d say is the other big benefit we have is, our prices are already fairly below all of our competitors.

克里斯，我想說的是，我們的另一個好處是，我們的價格已經相當低於所有競爭對手。

And so, we think that our competitors will feel it more painfully than us, and as Tom mentioned, it’s just so different because we were sourcing 50% of what we were buying now and that number is going to be a lot lower as we get into possible tariffs if there’s a change in the administration.

因此，我們認為我們的競爭對手會比我們感受到更痛苦，正如 Tom 所提到的，情況是如此不同，因為我們現在採購的 50% 是由我們採購的，而這個數字將會低得多如果政府發生變化，我們會考慮可能徵收的關稅。

And I guess, so what about then on the freight side?

我想，那麼貨運方面呢？

I mean, presumably sourcing similar relative to competitors.

我的意思是，大概採購與競爭對手相似的產品。

You've recaptured these costs now and that’s certainly helping your gross margin.

您現在已經收回了這些成本，這肯定有助於提高您的毛利率。

If spot rates stay here, presumably contract rates go up next year.

如果即期利率維持在這個水平，明年的合約利率可能會上漲。

And again, like how do you think about, do you think the net impact is going to be worse this time from an elasticity and margin perspective?

再說一次，就像您如何看待，從彈性和利潤率的角度來看，您認為這次的淨影響會更糟嗎？

Yeah.

是的。

First off, we usually have three-year rolling contracts.

首先，我們通常會簽訂三年滾動合約。

And so, we’ll feel it a little bit, we’ll have the lower rates for a little bit longer because not all of our contracts are up next spring, which is when most of the supply chain contracts come up.

因此，我們會感覺到一點，我們會在更長的時間內享受較低的費率，因為並非所有合約都會在明年春天到期，而大多數供應鏈合約都是在那時到期的。

But yeah, I mean, if spot markets stay where they are, call it a third or whatever it’ll be that will come up for renewal next year is we likely would have higher rates.

但是，是的，我的意思是，如果現貨市場保持在原位，稱之為第三種或其他什麼——明年我們可能會進行更新，我們可能會有更高的利率。

Our view is that all of our competitors in the past have passed that along.

我們的觀點是，我們過去所有的競爭對手都已經傳承了這一點。

We would expect to see that again in this environment.

我們希望在這種環境下再次看到這種情況。

I get your point that that still affects the consumer and the consumer stretch.

我明白你的觀點，這仍然影響著消費者和消費者的延伸。

But I guess said differently is I don’t think we’ll be in any different competitive position unless our competitors decide to meaningfully lower their gross margins, which historically they have not done.

但我想換句話說，我認為我們不會處於任何不同的競爭地位，除非我們的競爭對手決定大幅降低毛利率，而他們在歷史上從未這樣做過。

Makes a lot of sense.

很有道理。

Thanks very much.

非常感謝。

Michael Lasser with UBS.

瑞銀集團的麥可·拉塞爾。

Good evening.

晚安.

Thank you so much for taking my question.

非常感謝您回答我的問題。

So, you’re on pace to have just under $18 million in sales per store this year versus $17 million on a reported basis in 2019.

因此，今年每家商店的銷售額預計將接近 1800 萬美元，而 2019 年報告的銷售額為 1700 萬美元。

So, what percent of your stores right now have lower sales in traffic than they did in 2019?

那麼，目前您的商店中有多少百分比的銷售額低於 2019 年？

And outside of just very depressed existing home sales, why do you think a good chunk of your stores are producing lower volumes today than they were in 2019?

除了現房銷售非常低迷之外，您認為為什麼您的大部分商店今天的產量低於 2019 年？

So, I guess, I’ll give the broad answer.

所以，我想，我會給出廣泛的答案。

I certainly, Bryan, can look at the store count part of it.

布萊恩，我當然可以查看部分商店的數量。

I mean, we are in a very difficult macro housing environment.

我的意思是，我們正處於一個非常困難的宏觀住房環境中。

So, prior to 2019, since we went public and going through 2019, existing home sales were hovering above 5.5 million, close to 6 million homes annualized.

因此，在 2019 年之前，自從我們上市以來，整個 2019 年，現有房屋銷量徘徊在 550 萬套以上，年化接近 600 萬套。

That was a wonderful environment for our category as people buy and sell homes.

當人們買賣房屋時，這對我們這個類別來說是一個美妙的環境。

They buy and use our category.

他們購買並使用我們的類別。

And as you look fast forward to today, you had a bit of a pull-forward during COVID.

當你快速展望今天時，你在新冠疫情期間有一些提前。

So, we’re digesting the COVID pull-forward.

因此，我們正在消化新冠疫情帶來的影響。

You've got a macro where existing home sales were in our third consecutive year of negative existing home sales.

從宏觀來看，現房銷售連續第三年出現負值。

You've got housing pricing that’s up through the roof and household affordability, which is at a 40-year high.

房價飛漲，家庭負擔能力達到 40 年來的最高水準。

Those things affect every store in every market.

這些事情影響著每個市場的每家商店。

So, it's as things improve, we believe that volume comes back.

因此，隨著情況的改善，我們相信銷量會回來。

I think we didn’t realize how good things were pre-COVID, and as we've come out, certainly our category has taken more of a challenge.

我認為我們沒有意識到新冠疫情之前的情況有多好，而且隨著我們的出現，我們的類別無疑面臨了更多的挑戰。

Yeah.

是的。

Michael, this is Bryan.

邁克爾，這是布萊恩。

I’ll jump in.

我會跳進去。

Look, on a store-by-store basis, it’s a little hard to analyze it that way because we do open in existing markets.

看起來，在逐家商店的基礎上，以這種方式進行分析有點困難，因為我們確實在現有市場中開設業務。

So, we actually do put pressure on our own stores through cannibalization.

所以，我們實際上確實透過蠶食對我們自己的商店施加壓力。

What I would really point to is our five-year geo-CAGRs.

我真正想說的是我們的五年地理複合年增長率。

And so, if you look at that, we’re still positive.

因此，如果你看一下這一點，我們仍然持樂觀態度。

Even on a transactions basis, our geo-CAGRs against 2019 from a geo-basis are still up just sub-1%.

即使以交易為基礎，我們的地理複合年增長率與 2019 年相比仍僅增長了不到 1%。

So, when you look at it in total and we look at the markets that we’re in and we look at comp in total, our transactions are still up from 2019.

因此，當你從總體上看，我們看看我們所處的市場，我們從總體上看，我們的交易量仍然比 2019 年有所增長。

And so, I wouldn’t look at it necessarily on a store-by-store basis.

因此，我不一定會逐家查看它。

Got you.

明白你了。

And then my follow-up question is, given the cycle that Floor & Decor has been through over the last several years, what do you think a normalized comp rate for the business is?

然後我的後續問題是，考慮到 Floor & Decor 在過去幾年中經歷的周期，您認為該業務的標準化補償率是多少？

Especially as you slow new stores, you’ll get less of a benefit from the waterfall effect of those new stores ramping to maturity.

特別是當你放慢新店開張速度時，你從這些新店逐漸走向成熟的瀑布效應中獲得的好處就會減少。

And there could be some structural changes in the category from the technology like LVT and LVP may mean that there’s just been less changing of flooring in the United States.

LVT 和 LVP 等技術可能會導致該類別發生一些結構性變化，這可能意味著美國地板的變化較少。

And if interest rates come down and it inspires some existing home sales, but interest rates are coming down because of a leaking macro environment, how does that play into it as well?

如果利率下降並刺激了一些現房銷售，但利率下降是因為宏觀環境洩漏，那麼這又會產生怎樣的影響呢？

Hey, Michael.

嘿，麥可。

This is Trevor.

這是特雷弗。

I’ll take a crack at that.

我會嘗試一下。

We still have 130 million housing units in the United States. 80% of them are over 20 years old and on average they’re over 40 years old.

美國仍有 1.3 億套住房。其中 80% 年齡超過 20 歲，平均年齡超過 40 歲。

And as Tom said, there was a lot of pull-forward of demand that happened during COVID.

正如湯姆所說，在新冠疫情期間，需求發生了很大的提前。

But eventually, people are going to want to likely going to want to move or they’re going to want to upgrade their houses.

但最終，人們會想要搬家，或者他們會想要升級他們的房子。

Most of the research we've seen is flooring is usually in the top three to five things that people will invest in before they sell their home because they know that’ll help the price or if they’re moving into a new home, they’ll want to invest in flooring because they want to make it look good.

我們看到的大多數研究表明，地板通常是人們在出售房屋之前會投資的前三到五件物品，因為他們知道這會有助於價格上漲，或者如果他們要搬進新房，他們會想要投資地板，因為他們想讓它看起來更好。

So I don’t think we know.

所以我認為我們不知道。

But if you look at the last 15 years, I think on average, when the existing home sales were good and we were in a decent backdrop, flooring sales kind of grew 3% per year, 4% per year, 5% per year.

但如果你看看過去 15 年，我認為平均而言，當現有房屋銷售良好且我們處於良好的背景時，地板銷售每年增長 3%、4%、5%。

I think even our most mature stores would hopefully grow at that same rate.

我認為即使是我們最成熟的商店也有望以同樣的速度成長。

So just pick 3% as a number.

所以只選 3% 作為數字。

You’re right.

你是對的。

We’re opening less new stores.

我們開設的新店數量較少。

So we’ll have less of that waterfall benefit.

因此，我們獲得的瀑布收益將會減少。

But I do think we will still have some of that going on.

但我確實認為我們仍然會有一些這樣的事情發生。

So I would think in a more normalized environment, you’d hopefully get to a mid-single-digit comp and in a good year, it’d be in a high single-digit comp, because we do still believe the last 25 years has proven that we just feel like we've got a better model than most of what’s going on out there.

因此，我認為在一個更正常化的環境中，你希望能夠達到中個位數的競爭，而在好的一年中，它會達到高個位數的競爭，因為我們仍然相信最後一個數字25年的經驗已經證明，我們感覺自己擁有比現有大多數模型更好的模型。

So don’t know what’s going to happen.

所以不知道會發生什麼事。

But we’re fortunate to be in an industry with just a very aged housing and flooring is a top thing that people will invest in either because of existing home sales or just because flooring will wear out or trends will change

但我們很幸運，我們所處的行業只有非常老化的住房，而地板是人們投資的首要因素，要么是因為現有房屋的銷售，要么只是因為地板會磨損或趨勢會改變

I think the only thing I’d add to is that if, depending on the slope of the recovery, you’re going to have, for us, I think, two of the things are benefit.

我認為我唯一要補充的是，如果根據復甦的斜率，對我們來說，我認為其中兩件事是有益的。

We've continued to open.

我們繼續營業。

While we’re not open at the 20%-unit rate that we’ve opened historically, we’ve opened a lot of stores in the last couple of years in a down market.

雖然我們沒有像以往那樣以 20% 的單位利率開業，但在過去幾年中，我們在低迷的市場中開設了許多商店。

Those stores should accelerate pretty nicely in the event that the market starts to turn.

如果市場開始轉變，這些商店應該會很好地加速發展。

Michael Lasser

麥可·拉塞爾

Thank you very much and good luck.

非常感謝，祝你好運。

(Operator Instructions) Simeon Gutman with Morgan Stanley.

（操作員指令）西蒙·古特曼（Simeon Gutman）與摩根士丹利（Morgan Stanley）。

Good afternoon, everyone.

大家下午好。

I’ll ask one question, maybe a two-parter.

我會問一個問題，也許是兩個問題。

First, if you look at the performance of immature stores, so maybe years two, three, and four, are they performing where they should and I’m assuming they’re not because the environment is weak.

首先，如果你看看不成熟商店的表現，那麼也許第二年、第三年和第四年，它們的表現是否達到了應有的水平，我假設它們不是因為環境薄弱而表現不佳。

And if you can adjust for the weakness of the macro, is that spread to where the industry is, is that about the same or is there something else within those cohorts?

如果你可以根據宏觀經濟的疲軟進行調整，那麼這種情況是否會蔓延到產業所處的位置，情況是否大致相同，或者這些群體中是否還有其他情況？

And then maybe the second part, Trevor mentioned that California was healthier because it was first in.

然後也許是第二部分，特雷弗提到加州更健康，因為它是第一個。

Are there examples of markets that were last in that are still the weakest right now?

是否有一些例子表明，過去的市場現在仍然最疲軟？

Is that trend uniform across the country?

這種趨勢在全國範圍內是否一致？

Thank you.

謝謝。

On the second part, yeah.

在第二部分，是的。

I mean, we've got markets that are big for us, particularly like Texas and Florida, and some in the Mid-Atlantic that are now starting to feel what we saw out West.

我的意思是，我們擁有對我們來說很大的市場，特別是德克薩斯州和佛羅裡達州，以及大西洋中部的一些市場，這些市場現在開始感受到我們在西部看到的情況。

That’s why the overall comp has come down over the previous three quarters or four quarters.

這就是過去三個季度或四個季度整體業績下降的原因。

Florida and Texas, places in the Mid-Atlantic, Washington, D.C., markets like that are much more meaningful for us just on raw volume numbers.

佛羅裡達州和德克薩斯州、大西洋中部地區、華盛頓特區等市場僅從原始銷售數據來看對我們來說更有意義。

So, yeah, as the housing weakness started out West and moved to the East, you've seen our comps follow that same trend.

所以，是的，隨著房地產疲軟從西部開始並向東部轉移，您已經看到我們的比較遵循相同的趨勢。

And then on the new store cohort, we still have a waterfall where, for example, our stores that we opened in 2023 that are now comping, they’re actually comping positive.

然後，在新的商店隊列中，我們仍然有一個瀑布，例如，我們在 2023 年開設的商店現在正在進行比較，它們實際上正在進行積極的比較。

Right.

正確的。

And then as you walk up to the waterfall, the comps get better the closer you get to the newer stores.

然後，當您走到瀑布時，距離新商店越近，優惠就越好。

So, yeah, we still have a comp store waterfall that the oldest stores are comping the most negative and then, as I mentioned, the stores that we just opened, there’s only a handful of them, but the stores that we just opened that are comping are comping positive.

所以，是的，我們仍然有一個比較商店瀑布，最古老的商店正在比較最負面的東西，然後，正如我提到的，我們剛剛開設的商店，只有少數，但我們剛剛開業的商店打開的正在比較的正在比較積極的。

Chuck Grom with Gordon Haskett.

查克·格羅姆和戈登·哈斯克特。

Hey.

嘿。

Thanks very much.

非常感謝。

Gross margins, real nice improvement here in the second quarter, north of 43%.

第二季的毛利率確實有了不錯的改善，達到了 43% 以上。

Is this a good level to think about going forward beyond fiscal 2024 or do you think about investing some of that back in the price or other areas to stimulate demand?

對於考慮在 2024 財年之後繼續發展來說，這是一個好的水平嗎？

Yeah.

是的。

I’ll take that.

我會接受的。

This is Tom.

這是湯姆。

Yeah.

是的。

We’re pleased with the execution and how we’re executing on the gross margin side of the business.

我們對執行情況以及我們在業務毛利率方面的執行方式感到滿意。

We have invested some back in price in categories where price makes movement better.

我們在價格使流動性更好的類別上進行了一些價格投資。

We’ve certainly tried to be sharp in installation materials, a product that the Pro buys all the time and where we see a unit improvement when we lower price, we do that.

當然，我們在安裝材料方面努力精益求精，這是專業人士一直購買的產品，當我們降低價格時，我們發現單位有所改善，我們就會這樣做。

Going across the rest of the store, our prices are still good versus the competition.

瀏覽商店的其他部分，我們的價格與競爭對手相比仍然不錯。

We feel good about them.

我們對他們感覺很好。

And we’ll continue to, like we always do, we affect prices up and down every single week, depending on what’s going up in the competitive landscape.

我們將繼續像往常一樣，每週影響價格的上下波動，這取決於競爭格局的變化。

I do believe that we can we've grown gross margin almost every year that I've been here for lots of reasons.

我確實相信，由於多種原因，我來到這裡後，我們的毛利率幾乎每年都在增加。

I think our merchants are doing a terrific job as they move product, getting it at a better margin.

我認為我們的商家在轉移產品方面做得非常出色，並獲得了更高的利潤。

I think that because the flooring category within itself is under so much pressure, we’re being able to buy better with our existing vendors because things are tough.

我認為，由於地板類別本身承受著巨大的壓力，我們能夠從現有供應商那裡購買更好的產品，因為事情很艱難。

So we’re able to negotiate better, getting a little bit of benefit from mix.

因此我們能夠更好地進行談判，從混合中獲得一點好處。

We've got a good designer emphasis.

我們有很好的設計師強調。

We have 900-plus designers in our stores.

我們的商店裡有 900 多名設計師。

When those designers are with customers, they sell a higher ticket and better margin rates.

當這些設計師與客戶在一起時，他們會賣出更高的門票和更高的利潤率。

So, I think margin expansion can continue into 2024.

因此，我認為利潤率擴張可能會持續到 2024 年。

That’s certainly our goal.

這當然是我們的目標。

Seth Sigman with Barclays.

巴克萊銀行的賽斯西格曼。

Hey, everyone.

嘿，大家。

Thanks for taking the question.

感謝您提出問題。

Just thinking about the recovery opportunity, the relationship to housing turnover makes sense, should drive an improvement in transactions at some point and actually your transaction decline was less bad in Q2.

只要考慮到復甦機會，與房屋成交量的關係就有意義，應該會在某個時候推動交易量的改善，實際上第二季度的交易量下降情況沒那麼糟糕。

I guess I’m thinking about the project size issue, and therefore, average ticket.

我想我正在考慮項目規模問題，因此，平均票價問題。

Are you seeing anything that could suggest that project sizes just don’t go back to what you’ve seen over the last few years?

您是否發現任何跡象表明專案規模不會回到過去幾年的水平？

Is there any context on that?

有相關背景嗎？

And then, I’ll tie it in with a product question as well.

然後，我也會將其與產品問題連結起來。

Just thinking about the laminate and LVP categories do seem to be under-performing quite a bit.

僅考慮層壓板和 LVP 類別似乎確實表現不佳。

It looks like down high-teens based on the 10-Q.

根據 10-Q，它看起來像是下降了十位數。

So, any more perspective on that, why those categories are under-performing and maybe ties in with the project size?

那麼，對此有更多的看法嗎，為什麼這些類別表現不佳，並且可能與專案規模有關？

Thanks.

謝謝。

Yeah.

是的。

Seth, this is Tom.

賽斯，這是湯姆。

I’ll take a shot at that and then others can weigh in if they so choose.

我會嘗試一下，然後其他人如果願意也可以參與。

So, I would say, existing home sales, in my opinion, the higher that they go, the better it is for those categories.

因此，我想說，在我看來，現有房屋銷售越高，這些類別的情況就越好。

I think that that category lends itself to if flippers are into the market and we are -- they're doing a bigger job, they’re doing whole homes, they’re doing basements, they’re doing larger projects.

我認為，如果腳蹼進入市場，那麼這個類別就適合我們——他們正在做更大的工作，他們正在做整個房屋，他們正在做地下室，他們正在做更大的項目。

And I think as existing home sales improve, that that portion of the business comes back, which would help in project size.

我認為，隨著現房銷售的改善，這部分業務將回歸，這將有助於專案規模的擴大。

I think when people are doing projects within a house that they live in, if they elect to do their powder bath or they elect to do a kitchen, they're doing one job at a time and that’s it.

我認為，當人們在他們居住的房子裡做專案時，如果他們選擇做粉末浴或選擇做廚房，他們一次只做一項工作，就是這樣。

They're not doing the whole house at once.

他們不會一次性完成整個房子的工作。

And I just think someone selling a house and someone buying a house, that house could sit vacant for a portion and that lends to be a larger size.

我只是認為有人賣房子和有人買房子，那棟房子可能會空出一部分，從而導致更大。

So, I do think that in time when existing home sales normalize, that our project size comes back to where it was pre-COVID.

因此，我確實認為，當現房銷售正常化時，我們的專案規模就會回到新冠疫情之前的水平。

The other thing I think that’s affected laminate to a certain extent is that, it’s an easier not laminate, but laminate and vinyl, it’s an easier installation process.

我認為在一定程度上影響層壓板的另一件事是，它不是層壓板，而是層壓板和乙烯基，它是一個更容易的安裝過程。

So, I think during COVID and when people were at home and not having to go into work and they’re reinvested in their homes, that that category landed to be a little bit more easy for them.

因此，我認為在新冠疫情期間，當人們留在家裡，不必去工作，他們可以對自己的房屋進行再投資時，這一類別對他們來說會更容易一些。

So, they could buy in and they could do a bedroom on their own and not have to get a Pro to do it.

因此，他們可以購買並自己建造一間臥室，而不必找專業人士來做。

So, we probably suck some business forward as people are coming out of COVID versus not everyone’s going to take on a tile installation, but a lot of people will try to do a vinyl installation.

因此，隨著人們走出新冠疫情，我們可能會吸收一些業務，而不是每個人都會進行瓷磚安裝，但許多人會嘗試進行乙烯基安裝。

So, I think those two things benefited, which affected the category a little bit more and I think as things get better, the category gets better.

所以，我認為這兩件事受益匪淺，這對這個類別的影響更大一些，我認為隨著情況變得更好，這個類別也會變得更好。

Steve Forbes with Guggenheim Securities.

古根漢證券公司的史蒂夫福布斯。

Good evening.

晚安.

Tom, I was hoping you could provide a little more detail around the cadence of the 2025 store opening plan.

湯姆，我希望您能提供更多關於 2025 年開店計畫節奏的細節。

What does back loading mean?

回載是什麼意思？

I don’t know if you could be more specific there.

我不知道你能否說得更具體一點。

And also, what does it mean for the ability to extract or generate EPS growth while still leaning into the investment profile of the business?

此外，這對於在仍傾向於業務投資狀況的同時提取或產生每股盈餘成長的能力意味著什麼？

Like, is there any way to sort of frame, like, what sort of comp level or sales growth profile would be needed next year based on the current investment plans to get EPS growth higher next year or

例如，有沒有什麼方法可以根據目前的投資計畫來制定框架，例如明年需要什麼樣的補償水準或銷售成長概況，以使明年的每股盈餘成長更高，或者

--?

——？

EPS higher?

每股收益更高？

Yeah.

是的。

I’ll take the first part of that and maybe Bryan can weigh in at the second.

我會講第一部分，也許布萊恩可以參與第二部分。

I mean, first, I’ll headline with, it’s way too early to talk about 2025.

我的意思是，首先，我的標題是，現在談論 2025 年還為時過早。

We’re trying to give you our first thoughts on kind of how we’re thinking about the class of 2025 stores.

我們試圖向您提供我們對 2025 年商店類別的初步想法。

We get lots of questions about that.

我們對此有很多疑問。

So, we wanted to give you how we’re thinking about it today and things could change, but this is how we see it today.

因此，我們想向您介紹我們今天的想法以及事情可能會發生變化，但這就是我們今天的看法。

The reason the stores are back and loaded is a bit purposeful.

商店回來並加載的原因是有目的的。

And when I say back and loaded, that means they’ll happen in the second half of the year.

當我說回來並加載時，這意味著它們將在今年下半年發生。

We will have some stores that open in the first half, but we’ll have more that open up in the back half.

我們將有一些商店在上半年開業，但我們將在下半年開業更多商店。

And part of that is, we think it’s going to take a minute for the market to get better, and the better that demand is in the category, the better the new stores will start.

其中一部分原因是，我們認為市場需要一點時間才能好起來，而且該類別的需求越好，新店開張就越好。

So, we think later in the year will be better.

因此，我們認為今年晚些時候會更好。

So, that’s why we’re, it also gives us flexibility in the stores that we select if we push them to the second half of the year.

所以，這就是我們的原因，如果我們把商店推遲到下半年，這也讓我們可以靈活地選擇商店。

So, that’s the answer on that.

所以，這就是答案。

And yeah, EPS answer, I guess I answered.

是的，EPS 回答了，我想我回答了。

Yeah.

是的。

We’re now ready to comment on 2025, kind of EPS and growth and what it’s going to take.

我們現在準備對 2025 年的每股盈餘和成長以及未來的發展進行評論。

Yeah, we've got a lot more planning to do as we get through the year.

是的，這一年我們還有很多計劃要做。

So, more to come on that as we provide guidance next year.

因此，我們明年將提供更多指導。

Steven Zaccone with Citi.

花旗銀行的史蒂文·扎科恩。

Great.

偉大的。

Thanks very much for taking my question.

非常感謝您提出我的問題。

I did want to understand the impact of slowing unit growth a bit more to the model.

我確實想了解單位成長放緩對模型的影響。

So, if you’re opening more in existing markets or the weight is more towards existing markets, is it fair to assume that there’s a little bit more cannibalization on comps?

因此，如果您在現有市場上開放更多，或者權重更多地轉向現有市場，那麼可以假設競爭中有更多的蠶食嗎？

And then, conversely, just on the bottomline, if you’re slowing unit growth, does it somewhat lower the leverage threshold for the business, because like if we do get back to a slightly positive comp next year, can you start to leverage some of those fixed costs and operating expenses?

然後，相反，就底線而言，如果您放慢單位增長速度，是否會在一定程度上降低業務的槓桿門檻，因為就像如果我們明年確實恢復到略微正值的情況一樣，您可以開始槓桿化嗎？

Yeah.

是的。

I would just say, yes, that if we do open slightly more stores in existing markets, it will have more cannibalization.

我只想說，是的，如果我們在現有市場上開設稍微多一點的商店，將會有更多的蠶食。

But because we’re going to have fewer stores as a percentage of total, we think the cannibalization probably goes down a little bit.

但由於我們的商店佔總數的比例將會減少，我們認為蠶食可能會略有下降。

So for example, this year, I think we’re going to open 13% new stores and next year, based on the 25, the estimated 25 stores, Tom mentioned, it’s more like 10% growth.

舉例來說，我認為今年我們將開設 13% 的新店，而明年，基於 25 家（估計的 25 家店），Tom 提到，成長幅度更像是 10%。

And so the math of that would be cannibalization would probably be lower.

因此，從數學上看，蠶食可能會更低。

Yeah, I mean, I think on the on the leverage point, as Tom mentioned, and you guys have all seen our gross margin has come up, and we've got a number of stores that are operating on much more minimum cost hours.

是的，我的意思是，我認為在槓桿點上，正如湯姆所提到的，你們都看到我們的毛利率上升了，而且我們有許多商店以更多的最低成本時間運作。

So when we start to get back to comp positive, which hopefully will happen next year, we don’t know.

因此，當我們開始恢復積極的狀態時（希望明年會發生），我們不知道。

But if it does, then yeah, we think the flow through should be higher on that, because we have a number of stores where the cost shouldn’t go up as much and we’re operating at a higher gross margin.

但如果確實如此，那麼是的，我們認為流量應該更高，因為我們有許多商店，成本不應該上漲那麼多，而且我們的毛利率更高。

So the flow through should be pretty high.

所以流量應該要相當高。

Yeah.

是的。

Just keep in mind that our new stores are a drag, they actually add delever.

請記住，我們的新商店是一個拖累，他們實際上增加了 deever。

And so as we open fewer stores next year, if it’s approximately 25, that’ll actually allow us delever quicker, because you've got fewer new stores coming into that combination.

因此，隨著明年我們開設的門市數量減少，如果大約為 25 家，這實際上會讓我們更快地去槓桿化，因為這種組合中的新店數量會減少。

David Bellinger with Mizuho Securities.

瑞穗證券的大衛貝林格。

Hey, guys.

嘿，夥計們。

Thanks for the question.

謝謝你的提問。

It’s on the ERP, the Enterprise Resource Planning System.

它位於 ERP（企業資源規劃系統）上。

Just help us a little more detail there.

請幫助我們提供更多細節。

Why is that needed now?

為什麼現在需要這個？

Is there anything you’re looking to improve or something that’s lacking in the system today?

目前的系統中是否存在您希望改進的內容或缺少的內容？

And then just the second part in this multiyear rollout, can you help us this frame?

然後是這個多年推出的第二部分，你能幫助我們這個框架嗎？

Are there any safeguards going into place to sort of limit just any type of disruption, whether on the merchandising side or something else?

是否有任何保障措施來限制任何類型的干擾，無論是在銷售方面還是其他方面？

How should we think about all this and just any safeguards you guys are thinking about?

我們應該如何考慮這一切以及你們正在考慮的任何保障措施？

Yeah.

是的。

This is Trevor.

這是特雷弗。

I've been here 13 years, and shortly after I got here, we knew we had an incredible business and we had to invest in technology to help us grow this business from some portion of $200 million to the $4.5 billion that we think we’ll do this year.

我已經在這裡工作了13 年，在我來到這裡後不久，我們知道我們擁有令人難以置信的業務，我們必須投資技術來幫助我們將這項業務從2 億美元的一部分發展到我們認為的45 億美元。

And so we've been putting in best-of-breed technologies really for over 10 years and the vast majority of our systems are really good companies that are big companies that you guys would know, public companies that are SaaS-based companies, whether it’s CRM or HR or what we do with supply chain.

因此，十多年來，我們一直在採用最佳技術，我們的絕大多數系統都是非常好的公司，是你們都知道的大公司，是基於 SaaS 的上市公司，無論是它是CRM 或HR或我們對供應鏈所做的事情。

And the last two that we need to invest in to move off off-prem old AS400 technology is our kind of core merchandising systems and our financial systems.

為了擺脫外部舊的 AS400 技術，我們需要投資的最後兩個是我們的核心銷售系統和財務系統。

And so, they’re not all that sexy or pretty, but they’re core to what you do to run the business.

因此，它們並不那麼性感或漂亮，但它們是您經營業務的核心。

And so we've got a lot of experience in putting in new systems.

因此，我們在安裝新系統方面擁有豐富的經驗。

As I mentioned earlier, we've done a lot of that over the last 10 or so years.

正如我之前提到的，在過去十年左右的時間裡，我們做了很多這樣的事。

And these are just the last two that are sitting on old technology that we need to move forward.

這些只是我們需要繼續發展的最後兩項舊技術。

So we've got, again, a good team that’s been here that entire time and we feel like we know what we’re doing.

因此，我們再次擁有一支優秀的團隊，他們一直都在這裡，我們感覺我們知道自己在做什麼。

We picked an incredibly strong, very large player.

我們選擇了一位非常強大、非常高大的球員。

And so when you hear the word ERP, don’t think of that in the same sense for us, because our stores, our systems that we’re putting in are going to be a small piece of that, because we've already upgraded the rest of the best-of-breed technologies.

因此，當您聽到 ERP 這個詞時，不要將其視為對我們來說相同的含義，因為我們的商店、我們正在安裝的系統將只是其中的一小部分，因為我們已經升級了其餘的最佳技術。

These are just the last two to be put in.

這些只是最後要放入的兩個。

Hey.

嘿。

This is Bryan.

這是布萊恩。

I’ll actually just jump in and weigh in a little bit, too, because I’m sure you guys have a question.

事實上，我也會介入並權衡一下，因為我確信你們有一個問題。

But as I alluded to in the comments earlier, it’s not expected to have a material impact for the full year of 2024.

但正如我之前在評論中提到的，預計不會對 2024 年全年產生重大影響。

So it’ll be minimal.

所以它會是最小的。

But I do want to call out that it is one of the reasons that we should expect sequential modest pressure on G&A as percent of sales in the back half.

但我確實想指出，這是我們應該預期管理費用佔下半年銷售額的百分比將繼續承受適度壓力的原因之一。

So it will add just a little bit of pressure.

所以它只會增加一點壓力。

And so we expect to be slightly above 6% for the full year.

因此，我們預計全年成長率將略高於 6%。

So that will put just a little bit of pressure, again, minimal for the full year, but a little bit of pressure in Q3 and Q4.

因此，這將再次帶來一點壓力，全年的壓力很小，但第三季和第四季會帶來一點壓力。

Greg Melich with Evercore ISI.

格雷格·梅利奇 (Greg Melich) 與 Evercore ISI。

Hi.

你好。

Thanks.

謝謝。

I wanted to follow up on cash flow, sort of both from CapEx and inventory.

我想追蹤現金流，包括來自資本支出和庫存的現金流。

I guess, how long can we keep inventory flat or down if we’re still opening stores?

我想，如果我們仍然開店，我們可以保持庫存持平或下降多久？

What’s the right level there?

正確的水平是多少？

And then on the CapEx side, is the decline this year about next year’s openings or will next year’s CapEx, is that where we’ll see the decline come from fewer openings?

然後在資本支出方面，今年的下降是因為明年的空缺職位還是明年的資本支出，我們會看到下降是因為空缺職位的減少嗎？

Hey.

嘿。

This is Bryan.

這是布萊恩。

I’ll take this and let Trevor and Tom weigh in if they need to.

如果特雷弗和湯姆需要的話，我會接受這個並讓他們參與權衡。

So when it comes to our free cash flow, we expect inventory, you asked on inventory, we expect inventory could be flat year-over-year as we kind of exit the year.

因此，當談到我們的自由現金流時，我們預計庫存，你問庫存，我們預計庫存可能會同比持平，因為我們即將退出今年。

But just remember, a lot of that has to do with us optimizing our inventory this year within our distribution centers and also reduction in supply chain costs.

但請記住，這很大程度上與我們今年優化配送中心的庫存以及降低供應鏈成本有關。

So I do think that as we exit this year and move into 2025, as we continue to add stores, I think, you will see inventory pick up at that point, but it should hopefully grow in line with the rate of sales.

因此，我確實認為，當我們今年退出並進入 2025 年時，隨著我們繼續增加商店，我認為，那時您會看到庫存增加，但它應該有望與銷售速度保持一致。

So you will see a pickup there just as we add stores.

因此，當我們添加商店時，您會在那裡看到提貨。

So I think the inventory reductions will kind of be over as we exit 2024 and it kind of just normalized growth as we get into 2025.

因此，我認為，隨著 2024 年的結束，庫存削減將會結束，而隨著 2025 年的到來，庫存的成長將趨於正常化。

And then on the CapEx portion of that question, the majority of the drop really has to do with us opening 30 stores this year versus the original guide of 30 to 35.

然後就該問題的資本支出部分而言，大部分下降實際上與我們今年開設了 30 家商店有關，而最初的指導方針是 30 到 35 家。

So it’s mainly that and then a little bit of timing for the spend of the class of 2025 stores, but most of it has to do with the reduction of five stores.

所以這主要是關於 2025 年商店支出的一點時間安排，但大部分與減少 5 家商店有關。

Our average new store CapEx for the class of 2024 is around $10 million to $11 million.

我們 2024 年新店平均資本支出約 1,000 萬至 1,100 萬美元。

So if you drop those five stores, that’s the majority of the reduction in the high end.

因此，如果你放棄這五家商店，這就是高端商店減少的大部分。

So, obviously, our self-development projects would be above that average and then our site use facilities would be below that average.

因此，顯然，我們的自主開發項目將高於該平均水平，而我們的場地使用設施將低於該平均水平。

Max Rakhlenko with TD Cowen.

Max Rakhlenko 和 TD Cowen。

Hey, guys.

嘿，夥計們。

Thanks a lot.

多謝。

Can you speak to competition and what you’re seeing out there?

您能談談競爭情況以及您所看到的情況嗎？

Are smaller peers increasingly struggling and if so, do you expect to see closures if the current environment persists?

規模較小的同行是否正在日益陷入困境？ 如果是這樣，如果當前的環境持續下去，您是否預計會看到倒閉？

And then are peers being rational with price or are you starting to see price points move lower?

那麼同行對價格是否保持理性，或者您開始看到價格點走低？

This is Tom.

這是湯姆。

I’ll take the first part and other can weigh in if needed.

我將承擔第一部分，如果需要，其他部分可以權衡。

So we are hearing of more pressure.

所以我們聽到了更大的壓力。

We meet with our field teams on a quarterly basis where they come in and then we do shops on a weekly basis.

我們每季與我們的現場團隊會面，然後我們每週進行一次商店活動。

We’re hearing of competition struggling more today than we've heard during the last three years as the markets turned down.

隨著市場低迷，我們今天聽到的競爭比過去三年來的更加艱難。

Distributors and small independents and publicly traded peers.

經銷商、小型獨立企業和上市同業。

So we’re hearing it across the Board.

所以我們聽到了全面的聲音。

Everyone’s under more pressure.

每個人都承受著更大的壓力。

In the last great housing recession, when things did turn, there was less competition in hard surface flooring than there was going into it and I suspect the same thing will be true during this cycle.

在上一次房地產大衰退中，當情況確實發生轉變時，硬表面地板的競爭比剛開始時要少，我懷疑在這個週期中也會出現同樣的情況。

I wouldn’t say from a pricing standpoint, it's the same decent independent competitors in some markets are they yes, they’re aggressive in price, but it’s no different than it was six months ago to a year ago.

從定價的角度來看，我不會說，在某些市場上，他們是同樣體面的獨立競爭對手，是的，他們的價格很激進，但這與六個月前到一年前沒有什麼不同。

We’re not seeing much change in it.

我們沒有看到它有太大變化。

We have a handful of competitors across the country that certainly they’re much more aggressive in price and giving things away and we've got to pay attention to that.

我們在全國各地都有一些競爭對手，他們在價格和贈品方面肯定更加激進，我們必須注意這一點。

But overall, I would say that it’s not too different than it was within the last six months to a year.

但總的來說，我想說，這與過去六個月到一年內的情況並沒有太大不同。

And our gaps versus the way we measure it on micro-like products, our gaps remain terrific against the independents and distributor network and against the home improvement centers as well.

與我們在微型產品上衡量的方式相比，我們與獨立經銷商和分銷商網路以及家居裝修中心的差距仍然很大。

Peter Keith with Piper Sandler.

彼得·基思和派珀·桑德勒。

Thanks.

謝謝。

Good afternoon, guys.

下午好，夥計們。

Just quickly on the gross margin.

只是毛利率很快。

So real nice performance for Q2 and then you've got it up the full year pretty nicely.

第二季的表現非常好，全年的表現也非常好。

Is that purely a function of the lower supply chain costs, and if so, is that freight or is there like DC efficiencies, transportation efficiencies?

這純粹是供應鏈成本降低的結果嗎？

Could you just help us understand the benefits there?

您能幫助我們了解那裡的好處嗎？

Yeah.

是的。

This is Bryan.

這是布萊恩。

I’ll jump in and let Tom and Trevor jump in if they need to.

如果湯姆和特雷弗需要的話，我會介入並讓他們介入。

So you’re right.

所以你是對的。

The sequential improvement, so actually I'll start.

順序改進，所以實際上我會開始。

Year-over-year, we were up 110 basis points, Q2 versus Q2.

第二季與去年同期相比，成長了 110 個基點。

That primarily was due to supply chain costs.

這主要是由於供應鏈成本造成的。

The increase from Q1 to Q2 sequentially was really due to a couple of items.

從第一季到第二季的成長實際上是由於幾個因素造成的。

And so first, we had less than anticipated impact from the bridge collapse in Baltimore.

首先，巴爾的摩橋樑倒塌對我們的影響低於預期。

Second, we had better operations and execution with lower shrink damage and overall markdowns.

其次，我們擁有更好的營運和執行力，收縮損壞和整體降價也更低。

And then third, not having to pass-through as much supply chain savings in retail reductions than we had planned for, that allowed us to expand the margin rate, but also allowed us to maintain our price gaps in everyday low price strategy, which we’ll always kind of maintain that.

第三，不必透過零售削減來節省比我們計劃的那麼多的供應鏈節省，這使我們能夠擴大利潤率，但也使我們能夠在日常低價策略中保持價格差距，我們將永遠保持這一點。

So that really gives us conviction that the back half should be in line with the exit rate in Q2 or moderate improvement kind of to achieve that 43.2% to 43.3% for the full year.

因此，這確實讓我們確信下半年的退出率應該與第二季的退出率一致，或適度改善，以實現全年 43.2% 至 43.3% 的目標。

So, again, we have better visibility and conviction today based on those things that we saw in Q2 versus Q1.

因此，根據我們在第二季和第一季看到的情況，我們今天再次有了更好的可見度和信念。

Jonathan Matuszewski with Jefferies.

喬納森·馬圖謝夫斯基 (Jonathan Matuszewski) 和傑弗里斯 (Jefferies)。

Great.

偉大的。

Good evening.

晚安.

Thanks for squeezing me in.

謝謝你把我擠進去。

In the past, you shared some insights regarding your most valuable Pro customers.

過去，您分享了一些關於最有價值的專業客戶的見解。

I think historically you've said the top 20% of your Pros were increasing order frequency despite the challenged overall demand for the category.

我認為您曾經說過，儘管對該類別的整體需求面臨挑戰，但您的前 20% 的專業人士仍在增加訂單頻率。

Maybe if you could refresh us on trends you’re seeing with your top 20% of Pros and how they’re behaving relative to your broader customer base, that’d be helpful?

如果您能讓我們了解您在前 20% 的專業人士中看到的趨勢以及他們相對於您更廣泛的客戶群的行為方式，也許會有幫助？

Thanks so much.

非常感謝。

I don't have the specific how our top 20% are doing, but our Pro business continues to outperform our overall business.

我不知道我們前 20% 的具體情況如何，但我們的專業業務繼續跑贏我們的整體業務。

So, yeah, we continue to see our Pro business continue to outperform and maybe we’ll have that for the next call.

所以，是的，我們繼續看到我們的專業業務繼續表現出色，也許我們會在下一次電話會議中看到這一點。

But, yeah, we’re pleased that our Pro business continues to perform better than our homeowner business.

但是，是的，我們很高興我們的專業業務繼續比我們的房主業務表現更好。

Yeah.

是的。

Okay.

好的。

Well, we appreciate everyone's interest in our company.

嗯，我們感謝大家對我們公司的興趣。

We thank everyone for joining the call.

我們感謝大家加入此次通話。

We look forward to updating you on the next quarter.

我們期待為您提供下個季度的最新情況。

This concludes today's conference.

今天的會議到此結束。

You may now disconnect your lines at this time.

此時您可以斷開線路。

Enjoy the rest of your day.

享受你一天剩下的時間。