Genesco Inc (GCO) 2024 Q1 法說會逐字稿

Good day, everyone, and welcome to the Genesco First Quarter Fiscal 2024 Conference Call. Just a reminder, today's call is being recorded.

大家好，歡迎參加 Genesco 2024 財年第一季度電話會議。提醒一下，今天的通話正在錄音中。

I will now turn the call over to Darryl MacQuarrie, Senior Director of FP&A. Please go ahead, sir.

我現在將把電話轉給 FP&A 高級總監 Darryl MacQuarrie。請繼續，先生。

Good morning, everyone, and thank you for joining us to discuss our first quarter fiscal '24 results. Participants on the call expect to make forward-looking statements reflecting our expectations as of today, but actual results could be different. Genesco refers you to this morning's earnings release and the company's SEC filings, including its most recent 10-K and 10-Q filing for some of the factors that could cause differences from the expectations reflected in the forward-looking statements made today.

大家早上好，感謝您加入我們討論我們第一季度的 24 財年業績。電話會議的參與者希望做出前瞻性陳述來反映我們截至今天的預期，但實際結果可能會有所不同。 Genesco 向您推薦今天上午的收益發布和公司向美國證券交易委員會提交的文件，包括其最近提交的 10-K 和 10-Q 文件，其中列出了一些可能導致與今天發表的前瞻性聲明中反映的預期存在差異的因素。

Participants also expect to refer to certain adjusted financial measures during the call. All non-GAAP financial measures are reconciled to their GAAP counterparts in the attachments to this morning's press release and in schedules available on the company's website in the Quarterly Results section. We have also posted a presentation summarizing our results here as well.

與會者還希望在電話會議期間提及某些調整後的財務措施。所有非 GAAP 財務指標都與今天上午新聞稿的附件中的 GAAP 對應指標以及公司網站“季度業績”部分提供的時間表相一致。我們還在這裡發布了一份總結我們結果的演示文稿。

With me on the call today is Mimi Vaughn, Board Chair, President and Chief Executive Officer; and Tom George, Chief Financial Officer.

今天和我一起打電話的是董事會主席、總裁兼首席執行官 Mimi Vaughn；以及首席財務官 Tom George。

Now I'd like to turn the call over to Mimi.

現在我想把電話轉給 Mimi。

Thanks, Darryl. Good morning, everyone. Thank you for joining us.

謝謝，達里爾。大家，早安。感謝您加入我們。

While this quarter was undoubtedly a challenging one, I'd like to provide context on the factors impacting the current operating environment, including the shift we've seen in consumer dynamics within our Journeys business, what we've learned from them and most importantly, the immediate actions we're taking to improve our performance against a difficult macro backdrop across the industry.

雖然本季度無疑是一個充滿挑戰的季度，但我想提供有關影響當前運營環境的因素的背景信息，包括我們在 Journeys 業務中看到的消費者動態變化、我們從中學到的東西，最重要的是，在整個行業艱難的宏觀背景下，我們為提高業績而採取的立即行動。

Before we get into the details, I'll start by underscoring that despite the near-term turbulence, which we have reflected in our revised outlook for fiscal '24, I am confident in our footwear-focused strategy and believe in our future prospects. While the first quarter was even tougher than we anticipated for Journeys, both Johnston & Murphy and Schuh excelled, delivering record Q1 sales and demonstrating the benefit of our multi-division multichannel operating model.

在我們深入討論細節之前，我首先要強調，儘管近期出現動盪，我們已在修訂後的 24 財年展望中反映了這一點，但我對我們以鞋類為重點的戰略充滿信心，並相信我們的未來前景。雖然第一季度比我們對 Journeys 的預期還要艱難，但 Johnston & Murphy 和 Schuh 都表現出色，創造了創紀錄的第一季度銷售額，並展示了我們多部門多渠道運營模式的優勢。

In addition, we advanced many of the initiatives underlying this strategy that drive value. We continue to grow our digital business, and we further strengthen the connections with our consumer through progress on loyalty and customer insights.

此外，我們推進了許多推動價值的戰略舉措。我們繼續發展我們的數字業務，並通過提高忠誠度和客戶洞察力進一步加強與消費者的聯繫。

As a company, we have, in the past, successfully navigated multiple adverse retail cycles across our businesses, with the most recent being the COVID shutdowns in calendar 2020. As the leading destination for fashion footwear for teens, Journeys' track record of performance, including record sales and profits in the year following the shutdowns, demonstrates the resilience of the business, the importance of its value proposition to the consumer, and the ability to rebound from economic headwinds and fashion shift. I am confident we will come out on the other side of this environment in an even stronger competitive position.

作為一家公司，我們過去曾在我們的業務中成功度過多個不利的零售週期，最近一次是 2020 日曆年的 COVID 停工。作為青少年時尚鞋類的主要目的地，Journeys 的業績記錄，包括停產後一年創紀錄的銷售額和利潤，展示了企業的彈性、其價值主張對消費者的重要性，以及從經濟逆風和時尚轉變中反彈的能力。我相信我們會在這種環境的另一端以更強大的競爭地位脫穎而出。

That said, we are not satisfied with our Q1 performance. Following a positive end to the holiday season, our outlook in March assumed that this year's normalized spring deliveries would have had a more positive impact against the pronounced negative trend that emerged early in the quarter with our teen customer at Journeys. However, business did not improve as we changed seasons in the latter half of March and into April.

也就是說，我們對第一季度的表現並不滿意。在假期結束後，我們在 3 月份的展望中假設，今年正常化的春季交付會對本季度初出現的 Journeys 青少年客戶出現的明顯負面趨勢產生更積極的影響。然而，隨著我們在 3 月下半月和 4 月換季，業務並沒有好轉。

It's clear that given the dramatic change in consumer sentiment in recent months, we continue to contend with a bumpy post-pandemic reset with factors such as inflation, lower tax refunds and competitive discounting, particularly in athletic footwear, disrupting normal seasonal demand and shopping patterns at Journeys. Consumers continue to stretch their wallets and make harder choices on what to buy or not buy, particularly after filling up their closets with our footwear and other offerings earlier in the pandemic. That said, consumers are responding well to newness and seeking more of it, and we, and our brands, are moving quickly to create more newness after a focus primarily on core products.

很明顯，鑑於近幾個月消費者情緒的巨大變化，我們繼續應對大流行後顛簸的重置，包括通貨膨脹、較低的退稅和有競爭力的折扣等因素，特別是在運動鞋方面，擾亂了正常的季節性需求和購物模式在旅程中。消費者繼續掏空他們的錢包，在買什麼或不買什麼上做出更艱難的選擇，尤其是在大流行初期，他們的衣櫥裡擺滿了我們的鞋類和其他產品。也就是說，消費者對新鮮事物反應良好並尋求更多新鮮事物，而我們和我們的品牌在主要關注核心產品之後正在迅速採取行動創造更多新鮮事物。

Given the pressure Journeys is under, we are taking significant further actions to mitigate the near-term environment and consumer shifts. We are aggressively working to reposition the product assortment at Journeys as quickly as possible to meet the customers' appetite for newness.

鑑於 Journeys 面臨的壓力，我們正在採取進一步的重大行動來緩解近期環境和消費者轉變。我們正在積極努力盡快重新定位 Journeys 的產品分類，以滿足客戶對新奇事物的需求。

In addition, we've now identified more than 100 Journeys stores for closing and up to $40 million in cost savings, adding to the targets we initially laid out. We're also working harder to rationalize our inventory and making good progress against it, and Tom will address some of these efforts in more detail.

此外，我們現在已經確定要關閉 100 多家 Journeys 商店，並節省高達 4000 萬美元的成本，這比我們最初制定的目標還要多。我們也在更加努力地使我們的庫存合理化並取得良好進展，Tom 將更詳細地討論其中的一些努力。

Despite the challenges in Q1, I'd like to highlight some key accomplishments. We achieved record top line results for both Schuh and J&M, highlighting the in-depth work we did to evolve their customer value propositions, to set the strategy in both the retail and branded sides of our business and execute well to it.

儘管第一季度面臨挑戰，但我想強調一些關鍵成就。我們為 Schuh 和 J&M 取得了創紀錄的最高業績，突顯了我們為發展他們的客戶價值主張所做的深入工作，為我們業務的零售和品牌方面製定戰略並順利執行。

We grew our comparable digital sales by 7% over last year, while digital penetration grew to 21% of total retail sales versus 19% last year. And we advanced important strategic initiatives that will help set the stage for longer-term sustainable growth and profitability objective, which I will discuss further momentarily.

我們的可比數字銷售額比去年增長了 7%，而數字滲透率從去年的 19% 增長到零售總額的 21%。我們推進了重要的戰略舉措，這將有助於為長期可持續增長和盈利目標奠定基礎，我將在稍後進一步討論。

Now moving to our businesses in more detail, and starting with retail. The Journeys consumer, already squeezed by inflation and lower tax refund dollars, did not respond to the change of seasons as we had anticipated as we shifted away from boots into spring merchandise, continuing instead to trade down to lower price points and take advantage of the abundance of discounted athletic products elsewhere in the market. This elevated inventory in the channel continues to suppress demand for other products.

現在更詳細地轉向我們的業務，並從零售開始。 Journeys 的消費者已經受到通貨膨脹和退稅美元減少的擠壓，並沒有像我們預期的那樣對季節變化做出反應，因為我們從靴子轉向春季商品，而是繼續降價到更低的價格點並利用市場其他地方有大量打折的運動產品。渠道中庫存的增加繼續抑制對其他產品的需求。

Additionally, with closets already full, we saw lower store traffic and demand for a number of key styles this year. As a result, Journeys did not see the desired sell-through in some of its core fashion, athletic and casual products. Journeys countered with reduced receipts of core items and increased promotions and markdowns to clear slower-moving noncore goods, taking these actions, along with others, like returns to vendors to rationalize inventory.

此外，由於衣櫥已經滿了，我們看到今年商店客流量和對一些主要款式的需求有所下降。因此，Journeys 的一些核心時尚、運動和休閒產品未能達到預期的銷量。 Journeys 通過減少核心商品的收貨以及增加促銷和降價以清除流動較慢的非核心商品來應對，並採取這些行動以及其他措施，例如退貨給供應商以合理化庫存。

Encouragingly, we saw meaningful strength for newness in Journeys' assortment. However, the demand for that product versus our core styles was greater than we typically see in a given season. The core differentiator of the Journeys model is its ability to rotate its assortment quicker than competitors given our unparalleled vendor relationships, and the team is working diligently to make those adjustments. This will take some time to execute, but should begin to be evident by the back half of the year.

令人鼓舞的是，我們在 Journeys 的產品組合中看到了具有創新意義的優勢。然而，與我們的核心款式相比，對該產品的需求比我們在特定季節通常看到的要大。考慮到我們無與倫比的供應商關係，Journeys 模型的核心區別在於它能夠比競爭對手更快地輪換商品，並且團隊正在努力進行這些調整。這需要一些時間來執行，但應該會在今年下半年開始顯現。

While our store traffic remains challenged, our digital business was a bright spot. Having digested the outsized digital growth from the pandemic, we have inflected to growth again. Although consumer behavior remains unpredictable in the near term, we are taking extensive efforts to bolster our Journeys business, while we weather the current environment.

雖然我們的商店流量仍然面臨挑戰，但我們的數字業務是一個亮點。在消化了大流行帶來的巨大數字增長之後，我們再次轉向增長。儘管短期內消費者的行為仍然無法預測，但我們正在努力加強我們的旅程業務，同時我們也在應對當前的環境。

These include working with our brand partners in a bigger way to test new brands and styles, tell additional unique brand and product stories and garner even more allocated and exclusive products, conducting a much deeper dive on consumer and market insights to better understand current purchase intent and inform our future actions; strengthening Journeys' presence in key marketing channels to drive awareness, traffic and sales, such as boosting paid search and paid social media investments; and refining our in-store selling approach using input from recently completed time and activity studies, such as adjusted selling tactics, promoting use of new technology and tools in stores and incentivizing our store employees to focus further on engaging with customers and driving conversion.

其中包括以更大的方式與我們的品牌合作夥伴合作以測試新品牌和款式，講述更多獨特的品牌和產品故事並獲得更多分配和獨家產品，更深入地了解消費者和市場洞察力以更好地了解當前的購買意圖並告知我們未來的行動；加強 Journeys 在主要營銷渠道中的存在，以提高知名度、流量和銷售額，例如促進付費搜索和付費社交媒體投資；利用最近完成的時間和活動研究的輸入改進我們的店內銷售方法，例如調整銷售策略、在商店中推廣新技術和工具的使用以及激勵我們的商店員工進一步專注於與客戶互動和推動轉化。

Moving now to Schuh. The business delivered another quarter of strong double-digit comp growth, driven by solid increases in both stores and digital, with store traffic and average selling prices up. Schuh continues to benefit from a resilient consumer despite a challenging U.K. economy. Operating income improved nicely over last year, driven by stronger gross margins, market share gains and at roughly 40% of sales, a digital platform that leads our overall company.

現在搬到舒赫。該業務又實現了四分之一的強勁兩位數增長，這得益於商店和數字業務的穩步增長，商店客流量和平均售價上漲。儘管英國經濟充滿挑戰，但 Schuh 繼續受益於富有彈性的消費者。營業收入比去年有了很好的改善，這得益於更高的毛利率、市場份額的增長以及大約 40% 的銷售額，這是一個引領我們整個公司的數字平台。

Efforts to improve access to the top brands and styles and reinvigorate its relationship with its customers through marketing and loyalty initiatives has resulted in a business operating much more effectively. These successful efforts inform the playbook for what we're now executing at Journeys.

努力改善對頂級品牌和款式的訪問，並通過營銷和忠誠度計劃重振與客戶的關係，從而使企業運營更加有效。這些成功的努力為我們現在在 Journeys 執行的行動提供了信息。

Touching on loyalty. In its first year, the total Schuh Club members now stand at 1.6 million, and accounted for 27% of total sales in Q1, well surpassing expectations. Continuing to capitalize on loyalty remains key to driving market share gains and repeat customer purchases going forward. Congratulations to the Schuh team for driving the business to even greater heights.

觸及忠誠度。第一年，Schuh Club 會員總數達到 160 萬，佔第一季度總銷售額的 27%，遠超預期。繼續利用忠誠度仍然是推動市場份額增長和客戶重複購買的關鍵。祝賀 Schuh 團隊將業務推向更高的高度。

Switching to our branded platform. Johnston & Murphy remained a bright spot, delivering its ninth consecutive quarter of double-digit top line growth as well as the strongest gross margin and operating income gains among our businesses. This record start to the year was driven by strength across all channels, digital, retail and wholesale, as the business continued to capitalize on the long tail of the post-pandemic [workplace] casualization trend.

切換到我們的品牌平台。 Johnston & Murphy 仍然是一個亮點，連續第九個季度實現兩位數的收入增長以及我們業務中最強勁的毛利率和營業收入增長。今年創紀錄的開局是由數字、零售和批發等所有渠道的實力推動的，因為該企業繼續利用大流行後[工作場所]臨時化趨勢的長尾效應。

J&M's more affluent consumer is proving resilient against the challenging macro backdrop. But most importantly, J&M's assortment continues to resonate, led by casual, and the Upton and Amherst franchises, in particular, as well as major strength in apparel, which grew 35%.

事實證明，J&M 更富裕的消費者在充滿挑戰的宏觀背景下具有韌性。但最重要的是，J&M 的品類繼續引起共鳴，尤其是休閒系列、Upton 和 Amherst 系列，以及增長 35% 的主要服裝。

Finally, we are very encouraged by the traction of J&M Insiders affinity program, which is now approaching 800,000 members. Not only is it driving stronger customer engagement and higher average transaction size with our existing customers, but nearly 2/3 of new customers are joining the program, which should result in better retention and customer value.

最後，我們對 J&M Insiders 親和力計劃的吸引力感到非常鼓舞，該計劃現已接近 800,000 名成員。它不僅推動了與我們現有客戶的更強的客戶互動和更高的平均交易規模，而且近 2/3 的新客戶加入了該計劃，這應該會帶來更好的保留率和客戶價值。

I couldn't be more pleased with J&M's success, the team's effort to fundamentally reposition and reimagine the business as a more lifestyle-oriented brand in the face of a sea change in where-to-work trends is driving outstanding and sustainable results.

我對 J&M 的成功感到非常高興，面對工作地點趨勢的巨大變化，該團隊努力從根本上重新定位和重新構想該業務，使其成為一個更加以生活方式為導向的品牌，從而取得了出色且可持續的成果。

And there's a lot of runway ahead of us. With the product foundation in place, we're now focused on expanding our marketing reach to tell a bigger story and increase J&M's awareness as we invest for the next leg of growth.

我們前面還有很多跑道。隨著產品基礎的到位，我們現在專注於擴大我們的營銷範圍以講述一個更大的故事並提高 J&M 的知名度，因為我們投資於下一階段的增長。

In finishing out the divisional recap, Genesco Brands Group surpassed our expectations in the quarter despite going up against large sell-ins to accounts that were replenishing from supply chain disruption in Q1 last year. Results were driven by strengthening performance in the value channel and improved gross margins as freight costs ease, contributing to breakeven operating income. While there's more work to be done, Q1 was an encouraging start to the year that we believe should progress further as headwinds subside over the course of fiscal '24.

在完成部門回顧時，Genesco Brands Group 在本季度超出了我們的預期，儘管與去年第一季度因供應鏈中斷而補充的客戶進行了大量銷售。由於運費成本下降，價值渠道的績效增強和毛利率提高推動了業績的增長，從而實現了盈虧平衡的營業收入。雖然還有更多工作要做，但第一季度是今年令人鼓舞的開端，我們認為隨著逆風在 24 財年期間消退，這一開端應該會進一步取得進展。

Now I'd like to touch on our outlook. Given our Q1 results and the lack of visibility into consumer demand, we're taking a much more conservative view for the remainder of the year.

現在我想談談我們的前景。鑑於我們第一季度的業績以及對消費者需求缺乏可見性，我們對今年剩餘時間的看法要保守得多。

The second quarter is off to a similar start as Q1 for Journeys. And looking forward, even with shopping catalysts, like back-to-school and holiday, we're not planning for a change in the trend. We anticipate consumers will continue to primarily shop when there is a reason, which will be at a time when our product assortment will also better reflect the newness our customer is craving. And we expect some benefit here. Beyond this, we're not factoring in a shift in consumer patterns or economic improvement.

Journeys 第二季度的開局與第一季度相似。展望未來，即使有購物催化劑，如返校和假期，我們也不打算改變趨勢。我們預計，如果有原因，消費者將繼續主要購物，屆時我們的產品分類也將更好地反映客戶渴望的新奇事物。我們期望這裡有一些好處。除此之外，我們沒有考慮消費模式的轉變或經濟改善。

Looking at the longer-term horizon, fundamental to our success and capitalizing on the opportunities ahead of us is executing on the six pillars of our footwear-focused strategy, the right strategy for moving our business forward. We've made progress in several areas. And while it's still early in the year, I'd like to briefly update you on a few of the strategic initiatives we're implementing.

從長遠來看，我們成功的基礎和利用我們面前的機會正在執行我們以鞋類為重點的戰略的六大支柱，這是推動我們業務向前發展的正確戰略。我們在幾個領域取得了進展。雖然現在還處於年初，但我想向您簡要介紹一下我們正在實施的一些戰略舉措。

Beginning with Journeys' loyalty program, part of the third pillar of our strategy, deepening consumer connections and insights, we soft launched Journeys All Access earlier this month. Starting in June, you'll see us fully launch the program to consumers as we gear up for back-to-school. We couldn't be more excited about how this will amplify our connection with our customer as loyalty has done with our other brands.

從 Journeys 的忠誠度計劃開始，作為我們戰略第三支柱的一部分，加深消費者聯繫和洞察力，我們在本月早些時候軟啟動了 Journeys All Access。從 6 月開始，您將看到我們在為返校做準備時向消費者全面推出該計劃。我們對這將如何加強我們與客戶的聯繫感到非常興奮，因為忠誠度已經與我們的其他品牌相提並論。

This platform provides fun and creative ways to connect with our teen customer base and incentivizes them to consolidate their branded purchases with Journeys as they achieve higher tiers. With Journeys All Access rolling out, we're also better leveraging our investments in data analytics and personalization to increase customer retention rates and drive size and frequency of purchases.

該平台提供了有趣且富有創意的方式來與我們的青少年客戶群建立聯繫，並激勵他們在達到更高級別時通過 Journeys 鞏固他們的品牌購買。隨著 Journeys All Access 的推出，我們還可以更好地利用我們在數據分析和個性化方面的投資來提高客戶保留率並推動購買規模和頻率。

Next, as we work to accelerate our digital business, the first pillar in our strategy, we continue to ramp up a variety of initiatives at Journeys to fuel digital growth back to the double-digit rates we saw both before and during the pandemic. One example of the steps we're taking to drive growth is increasing the number of styles available to online consumers. Year-to-date, we're up more than 10% versus the same time last year and up 50% versus 2 years ago. and we're better highlighting the availability of new product releases and launches of products exclusive to Journeys.

接下來，在我們努力加速數字業務（我們戰略的第一個支柱）的過程中，我們繼續在 Journeys 推出各種舉措，以推動數字增長回到我們在大流行之前和期間看到的兩位數增長率。我們為推動增長而採取的措施之一就是增加可供在線消費者使用的款式數量。今年迄今為止，我們比去年同期增長了 10% 以上，比 2 年前增長了 50%。我們更好地強調新產品發布的可用性和 Journeys 獨有產品的發布。

Following Journeys' loyalty rollout, we also look forward to the launch of buy online, pick up in store at Journeys and J&M later this year, which aligns with our second pillar of maximizing the relationship between our physical and digital channels. Rolling out our new point-of-sale hardware and software, including new mobile devices, was a foundational step toward enabling BOPUS functionality. We expect to complete the U.S. rollout in a few weeks, and the Canadian rollout in July. BOPUS represents as much as 20% of Schuh's online sales, and we expect Journeys and J&M to see benefits like this over time.

隨著 Journeys 忠誠度的推出，我們也期待今年晚些時候在 Journeys 和 J&M 推出在線購買、店內提貨服務，這與我們最大化物理和數字渠道之間關係的第二個支柱相一致。推出我們新的銷售點硬件和軟件，包括新的移動設備，是實現 BOPUS 功能的基礎步驟。我們預計將在幾週內完成美國的推出，並在 7 月完成加拿大的推出。 BOPUS 佔 Schuh 在線銷售額的 20%，我們預計 Journeys 和 J&M 會隨著時間的推移看到這樣的收益。

Earlier this month, we also completed our receiving automation project at our largest distribution center, which not only reduces labor costs, but also accelerates how quickly we can make new products available to customers for purchase, both in store and online. In addition, we continue to make progress on moving Journeys' footprint off-mall. We're testing and learning in places such as power centers across multiple markets.

本月早些時候，我們還在我們最大的配送中心完成了收貨自動化項目，這不僅降低了勞動力成本，而且加快了我們向客戶提供新產品以供在商店和網上購買的速度。此外，我們在將 Journeys 的足跡移出購物中心方面繼續取得進展。我們正在多個市場的電力中心等地方進行測試和學習。

Supported by ramped up marketing campaigns to build awareness, we have so far opened 13 off-mall locations out of the 25 pilot stores we currently have planned. We still have work to do, but we are so far encouraged by the early reads and believe this initiative will represent a key element in Journeys' growth moving forward.

在加強營銷活動以提高知名度的支持下，我們目前計劃開設的 25 家試點門店中有 13 家位於商場外。我們仍有工作要做，但到目前為止，我們對早期閱讀感到鼓舞，並相信這一舉措將成為 Journeys 向前發展的關鍵因素。

In closing now, before handing the call over to Tom, I would like to thank all of our people. The incredible dedication of each of you drives our business forward and is especially inspiring during challenging times. Although we faced some near-term turbulence, I believe in our ability to successfully navigate these dynamics and come out ahead as we leverage our uniquely positioned retail and branded businesses. Our commitment to innovation with our footwear-focused strategy and leadership positions with Journeys in teen fashion footwear.

現在結束，在將電話轉交給湯姆之前，我要感謝我們所有的人。你們每個人令人難以置信的奉獻精神推動我們的業務向前發展，在充滿挑戰的時期尤其鼓舞人心。儘管我們近期面臨一些動盪，但我相信我們有能力成功駕馭這些動態並在我們利用我們獨特定位的零售和品牌業務時取得領先。我們致力於以鞋類為中心的戰略進行創新，並在青少年時尚鞋類領域的 Journeys 中佔據領導地位。

And with that, I'll pass it to you, Tom.

有了這個，我會把它傳遞給你，湯姆。

Thanks, Mimi. The headwinds faced in Journeys had a greater impact on our Q1 financial performance than we anticipated, and we are taking more aggressive steps to course correct and manage our P&L as we move forward.

謝謝，咪咪。 Journeys 面臨的逆風對我們第一季度財務業績的影響比我們預期的要大，我們正在採取更積極的措施來糾正和管理我們前進的損益。

In the meantime, we remain very pleased with the strength at J&M and Schuh and we're encouraged by the better-than-expected results at Genesco Brands Group.

與此同時，我們仍然對 J&M 和 Schuh 的實力感到非常滿意，我們對 Genesco Brands Group 好於預期的業績感到鼓舞。

Turning to our results for the quarter. Consolidated revenue was $483 million, down 7% compared to last year and down 6% on a constant currency basis. Our total comps were down 5%, as strong double-digit gains for Schuh and J&M were offset by the negative comp at Journeys. By channel, total store comps were down 8%, while direct comps were up 7%. By business, Schuh total comps increased 13%, J&M total comps increased 18% and Journeys total comps were down 14%.

談談我們本季度的業績。綜合收入為 4.83 億美元，比去年下降 7%，按固定匯率計算下降 6%。我們的總收入下降了 5%，因為 Schuh 和 J&M 強勁的兩位數收益被 Journeys 的負收入所抵消。按渠道劃分，商店總收入下降了 8%，而直接收入增長了 7%。按業務劃分，Schuh 總收入增長 13%，J&M 總收入增長 18%，Journeys 總收入下降 14%。

Gross margins were down 100 basis points as compared to last year. The main driver of the year-over-year change, as expected, was the return to a more normalized promotional environment at Journeys compared to essentially none last year. And the decrease beyond expectations was due to the markdowns we took to clear slower-moving product given the pressure on Journeys' top line. All other businesses improved year-over-year and exceeded our expectations.

與去年相比，毛利率下降了 100 個基點。正如預期的那樣，同比變化的主要驅動因素是 Journeys 回歸更加正常的促銷環境，而去年基本沒有。超出預期的下降是由於我們在 Journeys 的收入壓力下採取降價措施來清除銷售較慢的產品。所有其他業務都同比有所改善，超出了我們的預期。

By business, Journeys' gross margin was down 360 basis points. Schuh's gross margin was up 230 basis points as efforts to improve gross margin and strengthen relationships with key brands continue to gain traction. J&M's gross margin was up 300 basis points as we lapped the air freight headwinds we experienced a year ago. Finally, Genesco Brands Group gross margin was up 220 basis points as pressure from freight and logistics costs began to ease and due to mix.

按業務劃分，Journeys 的毛利率下降了 360 個基點。 Schuh 的毛利率上升了 230 個基點，因為提高毛利率和加強與主要品牌的關係的努力繼續獲得牽引力。由於我們克服了一年前經歷的空運逆風，J&M 的毛利率上升了 300 個基點。最後，Genesco Brands Group 的毛利率上升了 220 個基點，因為來自運費和物流成本的壓力開始緩解，並且由於混合。

Moving down the P&L. Adjusted SG&A expense was 52% of sales, an increase of 550 basis points over last year. The deleverage is mainly due to the lower sales volumes on what is already typically one of our lower volume quarters, given that we are at minimum levels of expenses at this time of the year, making it difficult to drive them lower. The increased expenses relative to guidance are largely attributable to variable expenses associated with a higher mix of digital sales as well as some onetime expenses in Schuh.

向下移動損益表。調整後的 SG&A 費用佔銷售額的 52%，比去年增加 550 個基點。去槓桿化主要是由於我們通常是銷量較低的季度之一的銷量下降，因為我們在一年中的這個時候處於最低水平的支出，因此很難降低它們。與指導相關的費用增加主要歸因於與更高的數字銷售組合相關的可變費用以及 Schuh 的一些一次性費用。

On the flip side, occupancy costs declined given our initiatives to lower rent expense and close underperforming stores. Meanwhile, selling salaries the second largest bucket in operating expenses, were only up modestly as our efforts to improve productivity and reduced hours has helped to mitigate the legislated increases in minimum wages.

另一方面，由於我們降低租金支出和關閉表現不佳的商店的舉措，入住成本有所下降。與此同時，由於我們提高生產率和減少工作時間的努力有助於緩解最低工資的法定增長，銷售工資是運營支出中第二大支出，僅略有上升。

Lowering to making the occupancy costs more variable in the store channel remains a key priority, and we continue to make good progress. In Q1, we achieved a 15% reduction in straight-line expense, on 37 lease renewals across the company, with an average term of approximately 3 years. This is in addition to the 237 renewals and 13% rent reduction we achieved in fiscal '23. With over 50% of our fleet coming up for renewal in the next couple of years, we have a lot of runway ahead of us to capture more savings.

降低門店渠道的入住成本，使其更具可變性仍然是一個關鍵優先事項，我們繼續取得良好進展。在第一季度，我們在全公司進行了 37 次續租，平均期限約為 3 年，實現了直線費用減少 15%。這是我們在 23 財年實現的 237 次續約和 13% 租金減免的補充。未來幾年，我們將有超過 50% 的機隊進行更新，我們還有很長的路要走，才能節省更多成本。

In light of current traffic and sales trends and general consumer uncertainty, we have identified over 40 more Journeys stores for closure, in addition to the roughly 60 we announced earlier this year. These are largely mall-based locations. With more sophisticated consumer information and tools, we believe we can recapture lost sales and profits through our online business and nearby stores, while at the same time, reducing our store fixed cost base.

鑑於當前的客流量和銷售趨勢以及消費者的普遍不確定性，除了我們今年早些時候宣布的大約 60 家門店外，我們還確定了另外 40 多家 Journeys 門店將關閉。這些主要是基於購物中心的位置。有了更複雜的消費者信息和工具，我們相信我們可以通過我們的在線業務和附近的商店重新獲得損失的銷售和利潤，同時減少我們的商店固定成本基礎。

In summary, for the first quarter, we incurred an adjusted operating loss of $22.7 million compared to adjusted operating income of $9.5 million for Q1 last year. This all resulted in an adjusted diluted loss per share of $1.59, which compared to earnings per share of $0.44 last year. Increased borrowings and interest rates, a lower tax rate and a reduced share count also contributed to the decline in EPS.

總而言之，與去年第一季度調整後營業收入 950 萬美元相比，我們第一季度調整後營業虧損為 2270 萬美元。這一切導致調整後的攤薄每股虧損為 1.59 美元，而去年的每股收益為 0.44 美元。借款和利率增加、稅率降低和股票數量減少也導致每股收益下降。

Turning now to capital allocation and the balance sheet. After a year of reinventory and repurchasing another 10% and of our outstanding shares, we ended the quarter as planned in a net borrowing position, and we are pleased inventories came in lower than expected. Despite the pressure on our Journeys business, we were able to adjust receipts and ended the quarter with inventories flat to last year and better positioned to invest in the newness trends we need in the assortment. The overall increase in inventories was driven by J&M, too, to support the higher levels of demand in their businesses.

現在轉向資本配置和資產負債表。經過一年的重新庫存和回購另外 10% 的流通股後，我們按計劃在本季度結束時處於淨借款狀態，我們很高興庫存低於預期。儘管我們的 Journeys 業務面臨壓力，但我們能夠調整收入並在本季度結束時庫存與去年持平，並且能夠更好地投資於我們需要的新趨勢。庫存的整體增加也是由 J&M 推動的，以支持其業務中更高水平的需求。

We continue to work with our brand partners to adjust our inventory levels and product assortments, and believe inventories will be more in line with last year as we get into the back half. We expect to end the year with lower inventories than last year.

我們繼續與我們的品牌合作夥伴合作，調整我們的庫存水平和產品分類，並相信隨著我們進入下半年，庫存將與去年持平。我們預計年底庫存將低於去年。

Capital expenditures in Q1 were $17 million, with the investments primarily directed to our digital and omnichannel initiatives in these stores. Given current trends, we are lowering our full year CapEx by roughly 10% to $50 million to $55 million. We opened 12 stores, which were primarily off-mall and in-outlets and closed 26, to end the quarter with 1,396 total stores.

第一季度的資本支出為 1700 萬美元，投資主要針對我們在這些商店的數字和全渠道計劃。鑑於目前的趨勢，我們將全年資本支出降低約 10% 至 5000 萬至 5500 萬美元。我們開設了 12 家商店，主要是商場外和奧特萊斯，關閉了 26 家，本季度末共有 1,396 家商店。

Finally, we repurchased 255,000 shares during the quarter or 2% of total outstanding shares for $9.2 million, leaving $25 million on our current authorization. As we've said, we are also doing a holistic review of our cost structure in connection with our fifth strategic pillar to reshape our cost base.

最後，我們在本季度以 920 萬美元的價格回購了 255,000 股股票或已發行股票總數的 2%，目前的授權還剩下 2500 萬美元。正如我們所說，我們還在對與第五個戰略支柱相關的成本結構進行全面審查，以重塑我們的成本基礎。

To that end, we have identified an incremental $15 million of cost savings on top of the $20 million to $25 million reduction we outlined earlier this year, with a large portion of the savings hitting the Journeys P&L. We can achieve SG&A savings through further occupancy reductions, implementing our time study findings to drive selling salary efficiencies, by capitalizing on new technology initiatives to drive productivity and procurement efficiencies on overhead.

為此，我們確定了在今年早些時候概述的 2000 萬至 2500 萬美元成本削減的基礎上再節省 1500 萬美元的成本，其中很大一部分節省的成本用於 Journeys P&L。我們可以通過進一步減少入住率來實現 SG&A 節省，實施我們的時間研究結果來提高銷售工資效率，通過利用新技術舉措來提高生產率和間接採購效率。

Finally, as I mentioned, we are working hard to variabilize our cost structure further to provide more flexibility to fluctuations in revenue. We expect to realize approximately $20 million of the savings in fiscal '24 and achieve an annualized run rate for the total of up to $40 million in fiscal '25.

最後，正如我提到的，我們正在努力進一步改變我們的成本結構，以便為收入波動提供更大的靈活性。我們預計在 24 財年實現約 2000 萬美元的節省，並在 25 財年實現總額高達 4000 萬美元的年化運行率。

Now turning to guidance. Given the lack of visibility in the consumer environment, we believe it's prudent to adopt a much more cautious view and extrapolate current trends through the balance of the year. Our outlook for Journeys assumes consumer demand will remain muted as it has thus far year-to-date, improving only somewhat as we inject more newness into the assortment in the back half, particularly in Q4.

現在轉向指導。鑑於消費者環境缺乏可見性，我們認為採取更加謹慎的觀點並通過今年剩餘時間推斷當前趨勢是明智的。我們對 Journeys 的展望假設消費者需求將像年初至今一樣保持低迷，隨著我們在下半年（尤其是第四季度）為產品系列注入更多新品而有所改善。

While this will drive better results in the back half versus the front, our expectation on the magnitude of improvement is substantially more conservative than when we last spoke in March. We expect Schuh and J&M to perform well. However, this will not be enough to offset the pressure at Journeys.

雖然這將在後半部分帶來比前半部分更好的結果，但我們對改善幅度的預期比我們在 3 月份上次發言時要保守得多。我們預計 Schuh 和 J&M 表現良好。然而，這不足以抵消 Journeys 的壓力。

Taking this into account, we now expect fiscal year '24 total sales to decrease 4% to 5% or down 5% to 6%, excluding the 53rd week, versus our initial guidance for flat to up 2% for the year. The takedown in sales over the remainder of the year is due primarily to lower expectations for Journeys.

考慮到這一點，我們現在預計 24 財年的總銷售額將下降 4% 至 5% 或下降 5% 至 6%，不包括第 53 週，而我們最初的指導是全年增長 2%。今年剩餘時間的銷售額下降主要是由於對 Journeys 的預期降低。

With regard to earnings per share, we now expect adjusted earnings per share in the range of $2 to $2.50 compared to our prior range of $5.10 to $5.90. Using the midpoint on our prior range, more than half of the reduction is driven by our Q1 actual results versus prior guidance and our assumptions for another earnings per share loss in Q2, which I'll outline in a moment. We continue to expect the 53rd week to add approximately $25 million of sales and have a small negative effect on earnings per share.

關於每股收益，我們現在預計調整後的每股收益在 2 美元到 2.50 美元之間，而我們之前的範圍是 5.10 美元到 5.90 美元。使用我們先前範圍的中點，一半以上的減少是由我們第一季度的實際結果與先前的指導以及我們對第二季度每股收益損失的假設驅動的，我稍後將對此進行概述。我們繼續預計第 53 週將增加約 2500 萬美元的銷售額，並對每股收益產生較小的負面影響。

While the takedown in sales dollars in the back half is greater than the front half, as I mentioned earlier, difficult sales periods, like the one we're facing, are significantly tougher on our P&L earlier in the year, given our largely fixed expense base. However, the flow-through on higher sales volumes in the back half will allow us to better leverage our fixed costs and generate solid profitability.

正如我之前提到的，儘管下半年銷售額的下降幅度大於上半年，但考慮到我們的大部分固定費用，今年早些時候，困難的銷售時期，就像我們面臨的那樣，對我們的損益表來說要困難得多根據。然而，下半年更高銷量的流通將使我們能夠更好地利用我們的固定成本並產生穩固的盈利能力。

Finally, our cost reductions and efforts to reflect newness in our assortment largely benefit Q4 this year. As such, that's where we expect to see the most positive impact to the bottom line and still expect to generate year-over-year earnings per share growth.

最後，我們的成本降低和努力反映我們產品種類的新穎性在很大程度上有利於今年第四季度。因此，我們預計這將對利潤產生最積極的影響，並且仍有望產生每股收益同比增長。

Some color on sales by business compared to last year. For Journeys, we expect a low double-digit sales decline. For Schuh, we expect growth in the high single-digit range. For J&M, a double-digit rate. And for Genesco Brands, modest growth through the remainder of the year. We now expect gross margin rates to be down 30 to 40 basis points compared to our prior view for fiscal year '24 gross margins to be up 35 to 45 basis points.

與去年相比，業務銷售額的一些顏色。對於 Journeys，我們預計銷售額會出現兩位數的低跌幅。對於 Schuh，我們預計將實現高個位數增長。對於 J&M，兩位數的比率。對於 Genesco Brands，在今年剩餘時間裡增長溫和。我們現在預計毛利率將下降 30 至 40 個基點，而我們之前預計 24 財年的毛利率將上升 35 至 45 個基點。

The change in our guidance is being driven by increased markdowns at Journeys, offsetting the benefit from lower freight and logistics costs and continued margin improvement at Schuh and J&M. We now expect adjusted SG&A as a percentage of sales to deleverage 170 to 200 basis points compared to our initial expectation of 40 to 70 basis points of deleverage, with the cost reduction efforts I described earlier and other actions working to partially offset deleverage on fixed expenses.

我們指引的變化是由於 Journeys 的降價幅度增加，抵消了運費和物流成本下降以及 Schuh 和 J&M 的利潤率持續提高帶來的好處。我們現在預計調整後的 SG&A 佔銷售額的百分比將比我們最初預期的去槓桿化 40 到 70 個基點低 170 到 200 個基點，我之前描述的成本削減努力和其他行動將部分抵消固定費用的去槓桿化.

In summary, we expect operating margin to decline versus fiscal '23 as the macro and industry challenges will offset our near-term strategic margin expansion and cost savings efforts. Our guidance assumes no additional share repurchases, which results in fiscal '24 and average shares outstanding of approximately 12 million shares, and we expect the tax rate to be approximately 25%.

總之，我們預計營業利潤率將低於 23 財年，因為宏觀和行業挑戰將抵消我們近期的戰略利潤率擴張和成本節約努力。我們的指導假設沒有額外的股票回購，這導致 24 財年平均流通股約為 1200 萬股，我們預計稅率約為 25%。

I'd like to now provide some specifics around Q2 to help you with your modeling. Starting with the top line, we expect Q2 sales to be down in a similar range as the first quarter. Regarding Q2 gross margins, we expect an overall gross margin decrease to 40 to 50 basis points given additional markdowns we have built in at Journeys to clear inventory. As Q2 is also one of our lower-volume quarters, the sales decline will result in roughly 460 to 490 basis points of SG&A deleverage, resulting in an earnings per share loss for the quarter of approximately $1.25 at the midpoint.

我現在想提供一些關於 Q2 的細節，以幫助您進行建模。從收入開始，我們預計第二季度的銷售額將下降至與第一季度相似的範圍。關於第二季度的毛利率，我們預計整體毛利率將下降至 40 至 50 個基點，因為我們在 Journeys 進行了額外的降價以清理庫存。由於第二季度也是我們銷量較低的季度之一，銷售下降將導致 SG&A 去槓桿化約 460 至 490 個基點，導致本季度每股收益中點損失約 1.25 美元。

In closing, we are taking appropriate actions to weather the near-term environment, and we remain confident that our footwear-focused strategy will position us to deliver solid longer-term growth and shareholder value.

最後，我們正在採取適當的行動來應對近期環境，我們仍然相信，我們以鞋類為重點的戰略將使我們能夠實現穩健的長期增長和股東價值。

Operator, we are now ready to open the call for questions.

接線員，我們現在可以開始提問了。

(Operator Instructions) Our first question comes from the line of Mitch Kummetz with Seaport Research.

（操作員說明）我們的第一個問題來自海港研究公司的 Mitch Kummetz。

I have several. So I hope you will indulge me. So starting with Journeys. I guess my first question, just big picture, what's kind of the biggest piece that changed? It kind of feels like you're originally thinking, boots were a drag because of weather and pricing. And once you kind of got through that, maybe once you got through the negative impact of tax refunds, that things would get better. And now it looks like that's not the case.

我有一些。所以我希望你能寬容我。所以從旅程開始。我想我的第一個問題是大局，最大的變化是什麼？感覺就像你最初在想，由於天氣和價格，靴子是一個拖累。一旦你度過了難關，也許一旦你度過了退稅的負面影響，事情就會好轉。而現在看來並非如此。

So has the consumer taken another step down from kind of where they were? And is that kind of the biggest piece? Or maybe you can just elaborate on why the big change on the Journeys side?

那麼，消費者是否從他們原來的位置又退了一步？那是最大的一塊嗎？或者，也許您可以詳細說明為什麼 Journeys 方面發生了巨大變化？

Mitch, thanks for your question. Thanks for joining us this morning, and that's exactly what we've seen. We are in a very unusual time. And first, I want to say is that we have a really good track record of successfully navigating times like this, multiple adverse economic cycles and fashion shifts within Journeys. And the most recent one was during the COVID pandemic, and Journeys took a hit and came out much stronger on the other side with record profits and sales. And so we anticipate that we will navigate this as well.

米奇，謝謝你的問題。感謝您今天早上加入我們，這正是我們所看到的。我們正處在一個非常不尋常的時期。首先，我想說的是，我們在成功度過這樣的時代、多個不利的經濟周期和 Journeys 的時尚轉變方面擁有非常好的記錄。最近一次是在 COVID 大流行期間，Journeys 受到了打擊，但在另一方面卻變得更加強大，利潤和銷售額創歷史新高。因此，我們預計我們也將對此進行導航。

But specifically, you're exactly right. As we were in the first quarter, we saw a pretty dramatic drop-off in store traffic and comp as we -- after we completed a successful holiday season. We believe that the trend would improve in March, for a couple of reasons. One is that we got further away from boots, and we talked about the consumer trading down in boots, and also just really holding back on overall purchases.

但具體來說，你是完全正確的。與我們在第一季度一樣，我們看到商店客流量和收入急劇下降——在我們成功地完成了一個假期之後。出於幾個原因，我們認為 3 月份的趨勢會有所改善。一是我們離靴子更遠了，我們談到了消費者在靴子上的交易，也只是真正抑制了整體購買。

And we thought that the switch into spring and a reason to re-wardrobe and to buy spring fashion would also bring the consumer in. But we frankly didn't see the improvement in store traffic. The consumer just seems to be sitting on the sidelines. It's such a unique time right now because of so many factors at play, the economic headwinds that are out there with inflation, tax refunds were certainly a part of it.

我們認為進入春季以及重新穿衣和購買春季時裝的理由也會吸引消費者。但坦率地說，我們沒有看到商店客流量的改善。消費者似乎只是坐在場邊。現在是一個非常獨特的時期，因為有太多因素在起作用，通貨膨脹帶來的經濟逆風，退稅肯定是其中的一部分。

The -- I want to underscore how much the excess inventory and the athletic discounting is a factor in the market because -- that coupled with the price increases that we and our brands taken across the assortment, have just pivoted the consumer to taking part in what usually isn't marked down and taking part in some of that product.

- 我想強調庫存過剩和運動折扣在多大程度上是市場中的一個因素，因為 - 再加上我們和我們的品牌在整個分類中採取的價格上漲，剛剛讓消費者轉向參與通常沒有降價的東西並參與其中的某些產品。

So bottom line, there is that we did not see the pickup in consumer traffic and purchases, and we think it is prudent to just reflect that in our guidance.

所以最重要的是，我們沒有看到消費者流量和購買量的回升，我們認為在我們的指導中反映這一點是謹慎的。

I guess a few follow-ups. I'll -- maybe I'll ask them together and feel free to have me repeat. But you mentioned the athletic discounting and the drag there. When do you think that you'll see that? And you also talked about the trade down. I know that, that was an issue with boots in particular, consumers buying $100-ish minis versus $200 classic talls. How did that manifest itself now that you've transitioned to spring?

我想有一些後續行動。我會——也許我會一起問他們，隨時讓我重複一遍。但是你提到了運動折扣和那裡的拖累。你認為你什麼時候會看到它？你還談到了交易。我知道，這尤其是靴子的問題，消費者購買 100 美元的迷你靴而不是 200 美元的經典高靴。既然你已經過渡到春天，那是如何表現出來的？

And do you think maybe you're losing customers to lower tiers of distribution and the trade down? And then lastly, just in terms of kind of the change of season, is that having a big impact on sandals? And is it -- do you think it's -- there's some weather component to that, that could potentially get better as we get further into in the summer? So really three follow-ups, so one on the athletic discounting, one on the trade down and one on the seasonal.

您是否認為您正在將客戶流失到較低層級的分銷和降價交易？最後，就季節變化而言，這對涼鞋有很大影響嗎？它是否 - 你認為它 - 有一些天氣因素，隨著我們進入夏季，天氣可能會變得更好嗎？所以真的是三個後續行動，一個關於運動折扣，一個關於交易，一個關於季節性。

Okay. Great. Let me start with the athletic discounting. And I think as much as everyone in the industry was anticipating that the athletic discounting would subside, by the time we hit midyear, before back-to-school, we've actually had a number of others within the industry who've announced recently, who have said that, that discounting will have a -- will continue through the balance of the year. And they've actually built more markdowns in to be able to affect that clearance.

好的。偉大的。讓我從運動折扣開始。而且我認為，正如業內每個人都預計到年中時，在返校之前，運動折扣將會消退，我們實際上已經有許多業內人士最近宣布，誰說過，折扣將有 - 將持續到今年的餘額。他們實際上已經建立了更多的降價促銷以影響清倉。

And these are really dramatic discounts, and it's on good products, and it's on products that normally isn't discounted. And that's why we think it attracts a lot of attention.

這些都是非常大的折扣，而且是在優質產品上，而且是在通常不打折的產品上。這就是為什麼我們認為它吸引了很多關注。

I'm going to answer your question around boots and the change of season by just talking about just the fashion cycle that we're in. Boots become much less of our assortment as we travel through the first quarter. They are more than 30% of our mix in February, and they go down to about 10% in April.

我將通過談論我們所處的時尚週期來回答你關於靴子和季節變化的問題。隨著我們在第一季度的旅行，靴子變得越來越少。他們在 2 月份占我們組合的 30% 以上，4 月份下降到 10% 左右。

And so they certainly become less of a factor. What we're really seeing is that our consumer is sitting on the sidelines. When we asked our consumer about -- on our most recent research at the end of the year, about how they feel about Journeys, we're still at the top of the league tables in consideration for where teens shop. We outscore others on being welcoming and cool and fun and having helpful employees. And so I think that it's really just sitting on the sidelines right now.

因此，它們肯定變得不那麼重要了。我們真正看到的是我們的消費者正在觀望。當我們詢問我們的消費者時——在我們年底的最新研究中，關於他們對 Journeys 的看法時，我們仍然在考慮青少年購物地點的排行榜中名列前茅。我們在熱情、冷靜、有趣以及樂於助人的員工方面勝過其他人。所以我認為它現在真的只是坐在場邊。

One of the things that I called out is that our consumer is looking for newness. We, and our brands, gravitated to core products in recent times, it made a lot of sense because it was a safer way to play it when there were so many ups and downs in the consumer cycle. And quite frankly, that's what we didn't have when we had supply chain shortages, and we felt -- we actually saw the demand for this core product.

我指出的一件事是我們的消費者正在尋找新鮮事物。我們和我們的品牌最近被吸引到核心產品上，這很有意義，因為在消費者周期起伏不定的情況下，這是一種更安全的玩法。坦率地說，這就是我們在供應鏈短缺時所沒有的，我們覺得——我們實際上看到了對這個核心產品的需求。

But there's a greater appetite for newness. And our merchants, our Journeys merchants have really hustled. They've moved heaven and earth to chase into some of this newness. And there are some examples of exclusive products for Journeys that we brought in that sold out, that is just newness and freshness. We're chasing into products that we were testing, and we had good reads on. We're shortening the cycle of being able to bring in product.

但人們對新鮮事物的胃口更大。而我們的商家，我們的 Journeys 商家真的很忙。他們竭盡全力追逐這種新鮮感。還有一些我們帶來的 Journeys 獨家產品售罄的例子，這只是新鮮感。我們正在追逐我們正在測試的產品，並且我們有很好的閱讀。我們正在縮短能夠引入產品的周期。

We're buying into styles that we saw working last winter. We are clearing out whatever we need to, but we're testing a lot of things and bringing in a lot of things. And so we think our chance to be able to affect this newness is going to be a little bit during back-to-school, but (technical difficulty).

我們正在購買去年冬天看到的款式。我們正在清除我們需要的任何東西，但我們正在測試很多東西並引入很多東西。因此，我們認為在返校期間我們有機會影響這種新鮮感，但是（技術難度）。

It was the first time in a long time when athletic grew more than casual, and we saw that again in the first quarter. But one thing I'd call out on the casual side is that there's a real interest in product that's comfortable. It's more structured that you can slip into. Part of what we're seeing is this real trend in clogs. And we're seeing the trend in clogs across lots of different brands. And it's early for the sandal season. It's not really taken off so far. But I think that there's a lot of trading into this clog product and into some specific brands. We've had a lot of success with collaborations, and we are seeing that shift through the course of the spring.

這是很長一段時間以來運動的增長超過休閒的第一次，我們在第一季度再次看到了這一點。但我想在休閒方面指出的一件事是，人們對舒適的產品真正感興趣。它更有條理，你可以滑進去。我們看到的一部分是木屐的這種真正趨勢。我們看到許多不同品牌的木屐趨勢。現在是涼鞋季節的早期。到目前為止還沒有真正起飛。但我認為這種木屐產品和某些特定品牌的交易量很大。我們在合作方面取得了很多成功，並且我們在整個春季都看到了這種轉變。

Okay. And then one final question. On the store closings, it looks like you now expect 45 fewer Journeys stores at the end of the year. Could you kind of walk us through kind of what the schedule of getting to that number looks like and its impact on the P&L? I know that you -- it sounds like you're hoping to kind of maybe pick up lost sales online. But does that have -- how much of a sales impact do you think that has? And what does that do to the SG&A in particular?

好的。然後是最後一個問題。關於門店關閉，您現在預計年底 Journeys 門店數量將減少 45 家。您能否向我們介紹一下達到該數字的時間表及其對損益的影響？我知道你——聽起來你可能希望在網上彌補失去的銷售。但這是否有——您認為這對銷售有多大影響？這對 SG&A 有何影響？

Sure, Mitch. I'll start, and then I'll hand it over to Tom. But in response to this, as you said, we are closing over 100 underperforming Journeys stores at this time, and we've added to our cost reduction. And we really do believe that we are going to position the business well, that sets us up for profitability to improve very quickly and materially when sales rebound.

當然，米奇。我會開始，然後我會把它交給湯姆。但作為對此的回應，正如你所說，我們目前正在關閉 100 多家表現不佳的 Journeys 商店，並且我們已經加大了成本削減力度。而且我們確實相信我們會很好地定位業務，這使我們能夠在銷售反彈時快速而實質性地提高盈利能力。

But we've identified these stores that we intend to close. And we are with more sophisticated analytics. And our real estate tools can -- and our customer information can drive the sales in these other businesses to our other locations and certainly, to online, where we're having a lot of success.

但是我們已經確定了我們打算關閉的這些商店。我們有更複雜的分析。我們的房地產工具可以——我們的客戶信息可以推動這些其他業務的銷售到我們的其他地點，當然還有在線，我們在那裡取得了很大的成功。

And here, we think that it doesn't take a lot when you remove the fixed expenses to replace the profitability that we would lose in these stores and will eliminate a lot of fixed expenses. And so we think that's going to be a real positive for the business.

在這裡，我們認為，當您刪除固定費用以取代我們在這些商店中損失的盈利能力並消除大量固定費用時，並不需要太多。因此，我們認為這將對業務產生真正的積極影響。

And I'll hand it over to Tom to talk about when we think that impact -- that will impact sales and overall profitability.

我會把它交給湯姆來談談我們何時認為這種影響——這將影響銷售和整體盈利能力。

Yes, Mitch, just to level set here. With the information we posted, we're going to be down a net 78 stores for Journeys over the course of the year, just to level set on that number. And the ones that we're opening are mainly -- they're not mall locations, they're off-mall locations, plus some premium outlets. And we've done very well with premium outlets.

是的，米奇，只是在這裡設置水平。根據我們發布的信息，我們將在這一年中減少 78 家 Journeys 商店，只是為了達到這個數字的水平。我們開設的主要是——它們不是商場，而是商場外，還有一些高級商店。我們在高級商店方面做得很好。

Most of those will be open in time for the back half of the year. The closures, you can see, we're making big headway on those early. And a lot of those will be closed for the back half. So they have a bigger impact in the back half of the year, both the third quarter and the fourth quarter. Some impact in the second quarter, but the bigger impact on closures is in the third quarter and the fourth quarter. So bigger impact on sales, big impact on SG&A, especially in the fourth quarter. Minimal impact, if any, on profitability.

其中大部分將在今年下半年及時開放。關閉，你可以看到，我們在早期取得了很大進展。其中很多將在後半部分關閉。因此，它們在今年下半年（第三季度和第四季度）的影響更大。第二季度有一些影響，但對關閉影響更大的是第三季度和第四季度。對銷售的影響更大，對 SG&A 的影響更大，尤其是在第四季度。對盈利能力的影響很小（如果有的話）。

In these stores that we're closing, on average, have lower sales volumes. And so they're...

在我們關閉的這些商店中，平均而言，銷量較低。所以他們是...

Significantly lower.

顯著降低。

Yes. So they have less of an impact than an average store closure would have.

是的。因此，它們的影響小於一般的商店關閉所產生的影響。

And our next question comes from the line of Ryan Lountzis with Jefferies.

我們的下一個問題來自 Jefferies 的 Ryan Lountzis。

This is Ryan on for Corey. I was just curious, as it relates to the store closing update, can you just provide any color around the trends you're seeing in off-mall versus in-mall locations? And then just what's the current mix between off-mall and on-mall locations? And how you're thinking about that moving forward?

這是科里的瑞恩。我只是好奇，因為它與商店關閉更新有關，您能否提供您在商場外和商場內看到的趨勢的任何顏色？那麼目前商場外和商場內地點的組合是什麼？你是如何考慮向前發展的？

Thanks for joining us this morning, Ryan, and I will talk a bit about our off-mall strategies. We are primarily located within mall locations right now for Journeys. We've got a number of street locations for Schuh. A number of airport locations for Johnston & Murphy.

感謝今天早上加入我們，Ryan，我將談談我們的場外策略。我們現在主要位於購物中心內的 Journeys。我們有許多 Schuh 的街道位置。 Johnston & Murphy 的多個機場位置。

And in general, in the Journeys portfolio, we also have a lot of outlets. So we don't really consider that to be off-mall. We consider off-mall to be more of those power centers and locations that are anchored by a different mix of tenants. So a lot by some of the value channel folks, a lot of the larger box off-mall locations.

總的來說，在 Journeys 組合中，我們也有很多網點。所以我們真的不認為這是購物中心。我們認為，off-mall 更像是那些由不同租戶組成的權力中心和地點。因此，一些價值渠道人員，很多較大的商場外地點。

And so this is really a newer initiative for us. We, in our market research with our consumers, have gotten the feedback that our customers go to off-mall locations multiple times per month, and it's part of their -- of the places that they go. They enjoy the convenience of shopping closer to home and combined with some of the omnichannel services that we can offer like curbside pickup.

因此，這對我們來說確實是一項較新的舉措。我們在與消費者進行的市場調查中得到的反饋是，我們的客戶每月多次去商場外的地點，這是他們去的地方的一部分。他們享受在離家較近的地方購物的便利，並結合我們可以提供的一些全渠道服務，例如路邊取貨。

And so we've had success with a number of early off-mall locations that delivered attractive four wall, and that encouraged us to test more. And so we are -- we've opened 13 of what we expect to open to be 25 off-mall stores. And these are with a larger footprint and ability to carry the full assortment of kids and adults.

因此，我們在許多早期的商場外地點取得了成功，這些地點提供了有吸引力的四面牆，這鼓勵我們進行更多測試。所以我們 - 我們已經開設了 13 家我們預計將開設的 25 家商場外商店。而且它們的佔地面積更大，能夠承載各種各樣的兒童和成人。

What we've seen so far is that they are significantly lower rent expense, which is great for our economics. We've got a double up early on with our marketing spend so that we can drive traffic and build awareness to know that we're there, but we see that there is a nice amount of conversion within these locations, and it puts us in a position to diversify away from malls.

到目前為止，我們所看到的是它們的租金支出顯著降低，這對我們的經濟非常有利。我們的營銷支出在早期就翻了一番，這樣我們就可以增加流量並建立意識，讓我們知道我們在那裡，但我們看到這些地點的轉化率很高，這讓我們處於遠離購物中心的多元化定位。

We're really enthusiastic about this growth opportunity, and it just gives us the potential of really a number of growth locations for Journeys. There are a lot of our peers that are out there. There are some formats that appeal to teens and to tweens, and we'd be looking to co-locate with them as well.

我們對這個增長機會充滿熱情，它給了我們在 Journeys 的許多增長點的潛力。我們有很多同行。有一些形式對青少年和青少年有吸引力，我們也希望與他們合作。

Okay. Great. And then could you just provide some additional information around the loyalty programs at Journeys, Schuh and Johnston & Murphy? Any sort of stats you could provide around the typical demographic? How member retention or transactions sizes defer from nonmembers?

好的。偉大的。然後你能提供一些關於 Journeys、Schuh 和 Johnston & Murphy 忠誠度計劃的額外信息嗎？您可以提供有關典型人口統計數據的任何類型的統計數據嗎？非會員的會員保留率或交易規模如何不同？

Sure. We are really excited about the soft launch of our Journeys All Access program. which took place earlier this month. And we will be rolling that out in time for back-to-school, which is -- which we think will do a lot to drive repeat purchases and also do a lot to drive average transaction size.

當然。我們對 Journeys All Access 計劃的軟啟動感到非常興奮。發生在本月早些時候。我們將及時推出返校，這是 - 我們認為這將大大推動重複購買，也將大大推動平均交易規模。

And so we launched the Johnston & Murphy Insiders program a couple of years ago, and I talked today on our call about having 800,000 members. And what we're seeing is that new members -- or new customers are really joining at a very, very high rate. And we're seeing higher average transaction size within their purchases.

因此，我們在幾年前啟動了 Johnston & Murphy Insiders 計劃，今天我在電話會議上談到了擁有 800,000 名成員的問題。我們看到的是，新成員或新客戶的加入率非常非常高。我們看到他們購買的平均交易規模更高。

On the Schuh side, we have just anniversaried the Schuh Club, which launched a year ago. And we have 1.8 million members -- sorry, 1.6 million members that we have added pretty quickly. And the U.K. -- size of the U.K. is 1/5 of the size of the U.S. so we're pretty pleased by how many we've added.

在 Schuh 方面，我們剛剛成立了一年前成立的 Schuh 俱樂部。我們有 180 萬會員——抱歉，我們很快就增加了 160 萬會員。而英國——英國的面積是美國的 1/5，所以我們很高興我們增加了多少。

And we've seen more purchase frequency within the Schuh Club as well. And so we think that overall, our loyalty efforts, coupled with all of our efforts on CRM and on personalization, are going to drive the ability for us to increase the number of pairs of shoes that our customers buy every year.

我們在 Schuh 俱樂部也看到了更多的購買頻率。因此我們認為，總的來說，我們的忠誠度努力，加上我們在 CRM 和個性化方面的所有努力，將推動我們增加客戶每年購買的鞋子數量的能力。

So we've got lots of teams across our organization working on these initiatives, and they're excited about the results that we are seeing and also excited about the potential for Journeys.

因此，我們的組織中有很多團隊致力於這些計劃，他們對我們看到的結果感到興奮，也對 Journeys 的潛力感到興奮。

Our next question comes from the line of Mitch Kummetz with Seaport Research.

我們的下一個問題來自 Mitch Kummetz 與 Seaport Research 的合作。

Yes. I have three follow-ups. First, Tom, on the guide, I got the impression from your comments earlier that maybe 3Q is another loss as far as earnings. Is that what you're essentially guiding to or...

是的。我有三個後續行動。首先，湯姆，在指南中，我從你之前的評論中得到的印像是，就收益而言，第三季度可能是另一個損失。那是你本質上要引導的還是...

No. No. Not at all. We expect Q3, we're going to see some growth in earnings. As we talked about the store closures, we'll have some of the cost savings in Q3 as well. Journeys will have much lower operating expenses in Q3 as well. So we expect -- relative to the prior year, we expect Q3 to be -- from the sales perspective, we do expect Q3 to be down some overall. That's really driven by Journeys. The rest of the businesses are going to be up.

不，不，一點也不。我們預計第三季度，我們將看到收益有所增長。當我們談到關閉商店時，我們也會在第三季度節省一些成本。旅程在第三季度的運營費用也將低得多。所以我們預計 - 相對於去年，我們預計第三季度 - 從銷售的角度來看，我們確實預計第三季度整體會有所下降。這真的是由 Journeys 驅動的。其餘的業務將會上升。

We do expect to take down, relative to the prior guidance, Journeys' gross margins some more to reflect the current environment. What we may need to do there, they'll have some lower operating expenses, but we expect Q3 operating income to be fairly comparable to last year's Q3 operating income.

相對於之前的指導，我們確實希望降低 Journeys 的毛利率，以更多地反映當前環境。我們可能需要在那裡做的是，他們的運營費用會有所降低，但我們預計第三季度的營業收入與去年的第三季度營業收入相當。

Okay. And then on the Genesco Brands Group, I believe you said modest growth over the balance of the year. I know that Q1 was hurt by the spring order books, based on how retailers were ordering product. How is the fall order book there setting up? Are you still optimistic about that?

好的。然後在 Genesco Brands Group 上，我相信你說的是今年餘下時間的溫和增長。根據零售商訂購產品的方式，我知道第一季度受到春季訂單的影響。那裡的秋季訂單簿是如何設置的？您還對此持樂觀態度嗎？

We feel good where that order book is heading. Still the general market dynamics are less of an order book relative to the prior year. But with the traction we saw in the first quarter, we expect, going forward, we'll be able to have some modest growth, more of that being for fall product more in the third quarter and the fourth quarter.

我們感覺訂單簿的方向很好。與前一年相比，總體市場動態仍然沒有那麼多訂單。但憑藉我們在第一季度看到的牽引力，我們預計，展望未來，我們將能夠實現適度增長，其中更多的是第三季度和第四季度的秋季產品。

Our biggest -- the biggest headwinds we were facing were in the first quarter, Mitch, with the sell-ins that we were anniversary-ing from last year.

我們最大的 - 我們面臨的最大逆風是在第一季度，米奇，我們從去年開始週年紀念銷售。

Got it. And then -- and lastly, just on the inventory, it sounds like you're a bit heavy on the Journeys side. You mentioned pressure on gross margins, not only just lapping the lack of promotions last year, but then also clearing through slow-moving product. When do you think you can have, I guess, the overall inventory kind of in the right shape, but particularly the Journeys inventory where you won't have like excess product to move through anymore?

知道了。然後——最後，就清單而言，聽起來你在 Journeys 方面有點沉重。你提到毛利率的壓力，不僅彌補了去年促銷活動的不足，而且還通過滯銷產品進行清算。我猜你認為你什麼時候可以擁有正確形狀的整體庫存，特別是你不會再有多餘產品移動的旅程庫存？

Yes. Let me echo Mimi's comments on the job the Journeys team has done in terms of working the inventory and changing the assortment, and kudos to them. We have great relationships with all the key brands that I'm sure you're all familiar with. So kudos to them being able to get their hands around the Journeys inventory.

是的。讓我回應 Mimi 對 Journeys 團隊在處理庫存和改變分類方面所做的工作的評論，並向他們表示敬意。我們與所有重要品牌都建立了良好的關係，我相信你們都很熟悉。因此，他們能夠獲得 Journeys 庫存，這讓他們倍感榮幸。

So as we move through the back half of the year, we do expect some improvement in Journeys inventory. And we certainly expect it to be below last year. And when you look at it relative to pre-pandemic levels, there'll be some elevation, but in the scheme of things, fairly small when you consider the cost increases in that inventory relative to pre-pandemic levels.

因此，當我們度過今年下半年時，我們確實預計 Journeys 庫存會有所改善。我們當然預計它會低於去年。當你相對於大流行前的水平來看它時，會有一些提升，但在事情的計劃中，當你考慮相對於大流行前水平的庫存成本增加時，它相當小。

So I feel really good about what the team has done. They've got a good history of getting their hands around inventory and rightsizing it according to the sales trends. So we feel good. We're going to end the year with lower inventories than last year, and we will -- that certainly will help us generate good cash flow for the year.

所以我對團隊所做的事情感到非常滿意。他們在掌握庫存並根據銷售趨勢調整庫存方面有著良好的歷史。所以我們感覺很好。我們將以低於去年的庫存結束今年，而且我們會 - 這肯定會幫助我們在今年產生良好的現金流。

And we are a full-price retailer, Mitch. We are not going on a promotional run here. The comments around first quarter, it was the last quarter that we're having to anniversary essentially no markdowns from last year. And so we think that the pressure on gross margins going forward will be less as we go through the year.

我們是一家全價零售商，米奇。我們不會在這裡進行促銷活動。關於第一季度的評論，這是我們必須週年紀念的最後一個季度，與去年相比基本上沒有降價。因此，我們認為隨著我們度過這一年，未來毛利率的壓力將會減少。

In addition to that, what we're adding in terms of additional markdowns for Journeys is really just to clear the slow-moving product in response to the consumer environment for core products, our intent isn't to mark down the core products, it's just a management of receipts forward. So the pressure on gross margins should ease up.

除此之外，我們在 Journeys 的額外降價方面添加的內容實際上只是為了響應核心產品的消費者環境來清除滯銷產品，我們的目的不是要降價核心產品，而是只是對收據的管理。因此，毛利率的壓力應該會有所緩解。

And we have reached the end of the question-and-answer session. And I'll now turn the call back over to Board Chair, President and CEO, Mimi Vaughn, for closing remarks.

我們已經結束了問答環節。我現在將把電話轉回給董事會主席、總裁兼首席執行官 Mimi Vaughn，請他作結束語。

Thank you for joining us today. We just want to point out again, we've got a great record of successfully navigating challenges like this. And we're taking the right action to respond to the consumer environment, and also to take the appropriate actions to be able to drive profitability as we move forward, and sales improve.

感謝您今天加入我們。我們只想再次指出，我們在成功應對此類挑戰方面擁有出色的記錄。我們正在採取正確的行動來應對消費者環境，並採取適當的行動以在我們前進和銷售改善的同時推動盈利能力。

So thank you for your time today, and I look forward to speaking with you on our next earnings call.

所以感謝你今天的時間，我期待著在我們的下一次財報電話會議上與你交談。

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時你們可以掛斷電話。感謝您的參與。