Genesco Inc (GCO) 2024 Q2 法說會逐字稿

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

大家好，歡迎參加 Genesco 2024 財年第二季度電話會議。提醒一下，今天的通話正在錄音。

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

大家早上好，感謝您與我們一起討論我們 24 年第二季度財報的結果。電話會議的參與者希望做出反映我們迄今為止預期的前瞻性聲明，但實際結果可能有所不同。 Genesco 請您參考今天早上的收益報告和公司向 SEC 提交的文件，包括我們最近的 10-K 和 10-Q 文件或一些可能導致與今天做出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 the schedules available on the company's website in the Quarterly Earnings 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 財務指標均與今天上午新聞稿的附件中的 GAAP 財務指標進行了核對，並在公司網站季度盈利結果部分的時間表中進行了調整。我們還在這裡發布了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. Now I'd like to turn the call over to Mimi.

今天與我一起參加電話會議的是董事會主席、總裁兼首席執行官 Mimi Vaughn；和首席財務官湯姆·喬治。現在我想把電話轉給咪咪。

Thanks, Darryl, and good morning, everyone. Thank you for joining us. Before I discuss our second quarter performance, I'd like to take a moment to address the other news we released yesterday, the announcement of Mario Gallione's plan retirement at the end of the fiscal year.

謝謝達里爾，大家早上好。感謝您加入我們。在討論我們第二季度的業績之前，我想花點時間討論一下我們昨天發布的其他新聞，即宣布馬里奧·加利奧內 (Mario Gallione) 計劃在本財年末退休。

Mario has had an extraordinary 44-year career with Genesco, most recently as President of Journeys Group for the last 6 years. His exceptional merchant leadership and footwear expertise has been instrumental in building Journeys into the leading teen fashion footwear retailer it is today. We will all miss his incredible passion for Journeys and for our people and thank him for his extensive contributions to our company. With Mario working to ensure a smooth transition and Mike Siefert's recent promotion to Journey's Chief Operating Officer, along with Journeys experienced senior leadership, I know we already have a strong team in place as we determine Mario's successor.

Mario 在 Genesco 度過了 44 年非凡的職業生涯，最近 6 年擔任 Journeys Group 總裁。他卓越的商業領導能力和鞋類專業知識對於將 Journeys 打造成當今領先的青少年時尚鞋類零售商發揮了重要作用。我們都會懷念他對旅程和我們員工的難以置信的熱情，並感謝他對我們公司的廣泛貢獻。 Mario 致力於確保平穩過渡，Mike Siefert 最近晉升為 Journey 的首席運營官，再加上 Journeys 經驗豐富的高級領導層，我知道在確定 Mario 的繼任者時，我們已經擁有了一支強大的團隊。

Now moving to our results. Although the headwinds pressuring our Journeys business persisted as the second quarter progressed and summer kicked in, sales trends modestly improved relative to Q1, picking up in June and sustaining into July as the back-to-school season began. Paired with our other divisions, this enabled us to deliver results ahead of our reset expectations during this lower volume time of the year. Despite a challenging consumer backdrop, Johnston & Murphy and Schuh each delivered another quarter of record sales, exceeding our expectations and helping to counter the pressure at Journeys. J&M and Schuh are concrete and recent examples of our ability to manage through adverse cycles, respond to changing consumer dynamics and come out on the other side in an even stronger competitive position.

現在轉向我們的結果。儘管隨著第二季度的進展和夏季的到來，我們的旅程業務面臨的壓力仍然存在，但銷售趨勢相對於第一季度略有改善，六月份有所回升，並隨著返校季的開始而持續到七月份。與我們的其他部門相結合，這使我們能夠在一年中銷量較低的時期提前我們重新設定的預期交付成果。儘管消費者背景充滿挑戰，Johnston & Murphy 和 Schuh 仍各自創下了季度銷售額紀錄，超出了我們的預期，並有助於應對 Journeys 的壓力。 J&M 和 Schuh 是我們管理逆週期、應對不斷變化的消費者動態以及在另一邊獲得更強大競爭地位的能力的具體且最新的例子。

At J&M, in response to the pandemic, we swiftly and effectively repositioned the brand to meet the changing needs of its consumer living in a more comfortable or casual world. While at Schuh, we evolved its customer value proposition and improved its product access and consumer marketing. Those efforts have yielded multiple quarters of growth and outperformance for both businesses, and now we're similarly acting with urgency to elevate and evolve Journeys. I am confident we will achieve the same success and value creation as we execute on our strategic plan.

在 J&M，為了應對這一流行病，我們迅速有效地重新定位了品牌，以滿足生活在更舒適或休閒世界中的消費者不斷變化的需求。在 Schuh 期間，我們發展了其客戶價值主張並改善了產品准入和消費者營銷。這些努力為兩家公司帶來了多個季度的增長和優異的業績，現在我們同樣迫切地採取行動來提升和發展旅程。我相信，我們將在執行戰略計劃時取得同樣的成功和價值創造。

The Journeys consumer remains squeezed by inflation, opting to conserve spending, making judicious choices on what to buy and primarily shopping when there's a need or a wanted item to purchase. Meanwhile, competitive discounting, most pronounced in athletic footwear continues to compete for share of wallet and suppressed demand for other products. On a positive note, our consumers' appetite for product newness remains strong, and we and our brand partners are moving quickly to inject the Journeys assortment with more of these in-demand goods.

旅程消費者仍然受到通貨膨脹的擠壓，選擇節省開支，明智地選擇購買物品，並且主要在有需要或想要購買的物品時進行購物。與此同時，競爭性折扣（在運動鞋中最為明顯）繼續爭奪錢包份額，並抑制了對其他產品的需求。從積極的方面來看，我們的消費者對新產品的興趣仍然強勁，我們和我們的品牌合作夥伴正在迅速採取行動，為旅程系列注入更多此類受歡迎的商品。

On our last call, we discussed the other immediate actions we're taking to mitigate the pressure on profits. We've made good progress on plans to close approximately 100 Journeys stores and identify $40 million of annual cost savings. We've worked hard to rationalize inventory and successfully drove inventories below last year's levels at the end of the second quarter, led by Journeys and eliminating the need to aggressively promote.

在上次電話會議中，我們討論了為減輕利潤壓力而採取的其他立即行動。我們在關閉約 100 家 Journeys 商店並確定每年節省 4000 萬美元成本的計劃方面取得了良好進展。我們努力合理化庫存，並在二季度末成功地將庫存降低至去年水平以下，這主要是在旅程的帶動下，並消除了積極促銷的需要。

We also returned capital to shareholders, repurchasing 8% of outstanding shares during the quarter for a total of 10% this fiscal year. While these measures will position us well when the consumer environment and sales recover, we are not complacent. We know we need to take further action to meaningfully accelerate Journeys' improvement and drive its top line growth. The foundation of our Journeys plan is our footwear-focused strategy and its strategic pillars that emphasize continued investment in digital and omnichannel, deepening consumer insights, driving product innovation and reshaping our cost base. We advanced several strategic initiatives in Q2, including growing our overall comparable digital business by 14%, expanding digital penetration to 21% versus 18% a year ago. We are building on this foundation with a plan to effectively elevate Journeys performance going well beyond and also accelerating several initiatives already in place.

我們還向股東返還資本，在本季度回購了 8% 的流通股，本財年總共回購了 10%。雖然這些措施將使我們在消費環境和銷售復甦時處於有利地位，但我們並不自滿。我們知道我們需要採取進一步行動，以有意義地加速旅程的改進並推動其營收增長。我們的旅程計劃的基礎是我們以鞋類為中心的戰略及其戰略支柱，強調對數字和全渠道的持續投資，加深消費者洞察，推動產品創新並重塑我們的成本基礎。我們在第二季度推進了多項戰略舉措，包括將整體可比數字業務增長 14%，將數字滲透率從一年前的 18% 擴大到 21%。在此基礎上，我們制定了一項計劃，以有效提升 Journeys 的績效，並加速已經實施的多項舉措。

Before I speak to those plans in detail, I'll touch on the recent highlights for both J&M and Schuh. Starting with Johnston & Murphy, the brand delivered a solid quarter against a tough multiyear comparison. J&M achieved record Q2 sales and at plus 12%, its fifth consecutive quarter of double-digit comp gains, driven by strong growth in its store channel, led by higher conversion and average transaction size. Sales growth would have been even stronger if not for a challenging wholesale business. As has been the case across the industry, retailers are exercising caution with their order books given the uncertainty of the environment versus last year when many were grappling with low inventory and refilling their pipelines.

在詳細討論這些計劃之前，我將談談 J&M 和 Schuh 最近的亮點。從 Johnston & Murphy 開始，該品牌在艱難的多年比較中實現了穩健的季度業績。 J&M 第二季度銷售額創歷史新高，增長12%，這是連續第五個季度實現兩位數的同比增長，這得益於其商店渠道的強勁增長，而轉化率和平均交易規模的提高帶動了這一增長。如果不是批發業務充滿挑戰，銷售增長將會更加強勁。與整個行業的情況一樣，考慮到環境的不確定性，零售商對訂單持謹慎態度，而去年許多零售商都在努力應對低庫存和補充渠道的問題。

Overall, J&M's assortment continues to really resonate with this more affluent customer base. The casual and casual athletic categories drove results, accounting for almost 90% of the direct-to-consumer footwear assortment. The brand continues to see strong growth in apparel and accessories, up more than 20% year-over-year, representing more than 40% of total DTC sales. As we've discussed before, the effort to fundamentally shift J&M's business is driving strong and sustainable results. With the work done to reposition J&M as a multi-category lifestyle brand, there now exists a significant opportunity to increase J&M's brand awareness, which is low relative to some competitors and changed the broad perception that it remains primarily a dress footwear brand. We are committed to investing to unlock this untapped market potential and excited about the multiyear growth story ahead.

總體而言，強生 (J&M) 的產品系列繼續與這一更富裕的客戶群產生真正的共鳴。休閒和休閒運動類別推動了業績，幾乎佔直接面向消費者的鞋類類別的 90%。該品牌的服裝和配飾業務繼續強勁增長，同比增長超過 20%，佔 DTC 總銷售額的 40% 以上。正如我們之前討論的，從根本上改變 J&M 業務的努力正在推動強勁且可持續的業績。隨著將J&M 重新定位為多品類生活方式品牌的工作完成，現在有一個重要的機會來提高J&M 的品牌知名度（相對於一些競爭對手而言，該品牌知名度較低），並改變了人們對J&M仍主要是正裝鞋類品牌的普遍看法。我們致力於投資以釋放這一尚未開發的市場潛力，並對未來的多年增長故事感到興奮。

Moving now to Schuh. The business had an outstanding quarter marked by 17% cost growth with solid sequential acceleration as the summer season kicked in and warm weather boosted sales. Offering a compelling assortment, Schuh drove robust sandal sales and both increased casual and athletic sales aided by higher average selling prices. Schuh delivered record operating income as well as the highest operating margin of all our businesses, led by solid full price sell-through. Strength was broad-based across stores and digital with store and web traffic up over last year. At almost 40% of sales, Schuh's digital business is the high watermark for the digital acceleration we're striving to achieve.

現在搬到舒。該業務季度表現出色，成本增長 17%，隨著夏季的到來和溫暖的天氣促進銷售，環比穩步加速。 Schuh 提供了引人注目的品種，帶動了涼鞋的強勁銷售，並且在平均售價上漲的幫助下，休閒鞋和運動鞋的銷量都增加了。在穩定的全價銷售帶動下，Schuh 實現了創紀錄的營業收入以及我們所有業務中最高的營業利潤率。商店和數字渠道的實力廣泛，商店和網絡流量比去年有所增加。 Schuh 的數字業務佔銷售額的近 40%，是我們努力實現的數字加速的高水位線。

Looking at the current quarter, Schuh's back-to-school season is off to a good start led by the kids business as targeted marketing and bundled promotions have been met with positive response. The notable momentum of this business over the last several quarters is testament to Schuh's growing strength and recognition in the market as a fashion footwear destination for the used consumer. Better access to the top brands and products and a relentless focus on customer engagement through marketing and loyalty initiatives has enabled the business to out-execute competitors and capture market share despite ongoing economic pressure. Compared to last year, Schuh moved up 3 spots to rank #10 in U.K. footwear market share in May and June, according to Kantar, and we believe the business is well positioned for continued share gains moving forward. Congratulations to the Schuh team for this exemplary performance.

從本季度來看，在兒童業務的帶動下，Schuh 的返校季開局良好，定向營銷和捆綁促銷得到了積極的反響。該業務在過去幾個季度的顯著增長勢頭證明了 Schuh 作為二手消費者時尚鞋類目的地的實力和市場認可度不斷增強。儘管面臨持續的經濟壓力，但更好地接觸頂級品牌和產品，以及通過營銷和忠誠度計劃對客戶參與的不懈關注，使企業能夠超越競爭對手並佔領市場份額。根據 Kantar 的數據，與去年相比，Schuh 在 5 月和 6 月的英國鞋類市場份額中上升了 3 位，排名第 10 位，我們相信該業務已做好準備，可以繼續擴大份額。祝賀 Schuh 團隊的出色表現。

Now I'd like to more fully discuss our initiatives at Journeys. Let me start by saying Journeys value proposition to customers is intact. It has driven our success as it separates us from competitors. The elevate plan is a multipronged strategy to drive traffic, sales and profitability with the goal of delivering not only stronger near-term improvement, but also further cementing Journeys' positioning as the dominant player in teen fashion footwear over the longer term.

現在我想更全面地討論我們在旅程中的舉措。首先我要說的是，Journeys 對客戶的價值主張是完整的。它推動了我們的成功，並將我們與競爭對手區分開來。該提升計劃是一項多管齊下的戰略，旨在推動流量、銷售和盈利能力，其目標不僅是實現更強勁的短期改善，而且從長遠來看，進一步鞏固Journeys 作為青少年時尚鞋類主導者的地位。

The key elements of the plan include: number one, strengthening customer engagement and expanding relationships with our target team customer, which is key in challenging times and it is our first priority. We launched a deep dive on consumer and market insights to build on our expansive knowledge of the teen to better understand purchase intent and how behavior has changed post- pandemic to shape future actions.

該計劃的關鍵要素包括：第一，加強客戶參與並擴大與目標團隊客戶的關係，這是在充滿挑戰的時期的關鍵，也是我們的首要任務。我們深入研究了消費者和市場洞察，以我們對青少年的廣泛了解為基礎，更好地了解購買意圖以及大流行後行為如何變化以塑造未來的行動。

As part of our engagement efforts and the lead up to back-to-school, we fully launched Journeys All Access loyalty program. While it's early on, the initial reads are very promising with a program approaching 1 million members signed up since the full launch in stores 2 months ago. We're aiming to interact with customers more frequently, driving repeat purchases, inducing them to consolidate their branded purchases with Journeys to achieve higher loyalty tiers.

作為我們參與工作和返校前準備的一部分，我們全面啟動了 Journeys All Access 忠誠度計劃。雖然還處於早期階段，但初步的結果是非常有希望的，自 2 個月前在商店全面推出以來，該計劃已有近 100 萬會員註冊。我們的目標是更頻繁地與客戶互動，推動重複購買，誘導他們將品牌購買與旅程整合，以實現更高的忠誠度等級。

Moving forward, in Q3, we will expand all access to other rewards specific to some of our top brand partners. With even more first-party data coming in through loyalty sign-ups, we're further leveraging our investments in customer analytics and more targeted personalized marketing.

展望未來，在第三季度，我們將擴大對一些頂級品牌合作夥伴特有的其他獎勵的所有訪問權限。隨著更多的第一方數據通過忠誠度註冊獲得，我們正在進一步利用我們在客戶分析和更有針對性的個性化營銷方面的投資。

Number two, elevating product and strengthening brand relationships, including expanding and adding more differentiation to the assortment, increasing the number of exclusives for Journeys and testing new brands and styles. Here, we're aggressively working to reposition the Journeys product assortment to meet the customers' appetite for newness. But beyond product, we're more fully leveraging the partnerships with our brands. Collaborating to tell key stories through social media, events and other activations to strengthen both the Journeys brand and the brands of our vendors. While repositioning the assortment will take some time, we already had several top-to-top meetings with our brand partners and in the process, secured greater access to highly allocated in-demand styles that allow us to impact the assortment by the back part of this year.

第二，提升產品質量並加強品牌關係，包括擴大產品種類並增加更多差異化、增加旅程獨家產品的數量以及測試新品牌和款式。在這裡，我們正在積極努力重新定位 Journeys 產品種類，以滿足客戶對新鮮事物的需求。但除了產品之外，我們還更充分地利用與我們品牌的合作夥伴關係。通過社交媒體、活動和其他活動合作講述關鍵故事，以加強旅程品牌和我們供應商的品牌。雖然重新定位產品系列需要一些時間，但我們已經與品牌合作夥伴舉行了幾次高層會議，在此過程中，我們獲得了更多機會獲得高度分配的需求款式，這使我們能夠通過後部影響產品系列。今年。

Number three, sharpening Journeys brand marketing. We're heightening these efforts as our insight work told us that when our customers engaged, they have a great experience with Journeys, but we have an opportunity to build greater awareness with our target consumer. The partnership with (inaudible) we launched this past quarter unites our Journeys brand purpose messaging with activities to drive commerce. In addition, in efforts to boost traffic in the back half, we're increasing paid social and paid search spend both of which are delivering positive returns.

第三，強化征途品牌營銷。我們正在加強這些努力，因為我們的洞察工作告訴我們，當我們的客戶參與時，他們會對旅程有很好的體驗，但我們有機會與目標消費者建立更高的認知度。我們上個季度與（聽不清）建立的合作夥伴關係將我們的 Journeys 品牌目的信息與推動商業活動結合起來。此外，為了增加下半年的流量，我們正在增加付費社交和付費搜索支出，這兩項支出都帶來了積極的回報。

Number four, implementing incremental initiatives to drive digital and omnichannel growth. We have the opportunity to significantly grow our e-commerce business like we've done at Schuh and are building on the successful initiatives that have driven Journeys' digital business to double-digit growth. These include increases in digital advertising and leveraging the new loyalty program. We are especially excited for the imminent launch of Buy Online Pick Up in Store, BOPUS will be phased in over the next few months beginning in September and rolled out before holiday. This leverages our store fleet while providing consumers with an additional convenient pickup option just in time for the holidays.

第四，實施漸進計劃以推動數字化和全渠道增長。我們有機會像在 Schuh 那樣顯著發展我們的電子商務業務，並在推動 Journeys 數字業務實現兩位數增長的成功舉措的基礎上繼續發展。其中包括增加數字廣告和利用新的忠誠度計劃。我們對即將推出的在線購買店內提貨服務感到特別興奮，BOPUS 將於 9 月開始的未來幾個月內分階段推出，並在假期前推出。這充分利用了我們的商店車隊，同時為消費者在假期期間提供了額外方便的提貨選項。

Number five, optimizing our Journeys footprint and driving productivity and efficiency, while closing underperforming mall stores, driving e-commerce and piloting off-mall locations are in response to the changing shopping habits of our teen consumer. Our overall objective is to grow Journeys revenue and share of market. Through improving customer data and analytics, when closing a store, we're better able to communicate with our customers and direct them to a nearby store or to online to maximize sales recapture. It's important to note that given the fixed cost we eliminate by closing a weaker performing store, we need very little sales transfer to achieve a breakeven operating income.

第五，優化我們的旅程足跡並提高生產力和效率，同時關閉表現不佳的商場商店，推動電子商務並試行商場外地點，以應對青少年消費者不斷變化的購物習慣。我們的總體目標是增加 Journeys 的收入和市場份額。通過改進客戶數據和分析，在關閉商店時，我們能夠更好地與客戶溝通，並將他們引導到附近的商店或網上，以最大限度地重新奪回銷售額。值得注意的是，考慮到我們通過關閉業績較差的商店消除了固定成本，我們需要很少的銷售轉移來實現盈虧平衡的營業收入。

Our recently completed time studies to optimize store selling efficiencies will ultimately yield positive results notably driving stronger conversion and higher productivity per hour as we eliminate excess work and focus more effective selling tactics on peak volume times.

我們最近完成的優化商店銷售效率的時間研究最終將產生積極的結果，特別是當我們消除多餘的工作並在高峰時段集中更有效的銷售策略時，將顯著推動更強的轉化和更高的每小時生產率。

Our new point-of-sale hardware and software, including in-store mobile devices, is facilitating further improvement as we deploy this and other technology towards these efforts. Importantly, I want to underscore, again, the conviction I have in our ability to address Journeys' challenges and achieve success just as we have demonstrated with our other businesses. With the great talent, creativity and dedication of the Journeys team, its unique strategic positioning as the leading destination for fashion footwear for teens and unparalleled strength of its brand relationships, I believe strongly in our future prospects. I look forward to keeping you updated on our progress as we continue to refine and evolve this plan and its priorities.

我們新的銷售點硬件和軟件（包括店內移動設備）正在促進進一步改進，因為我們部署了這項技術和其他技術來實現這些目標。重要的是，我想再次強調，我堅信我們有能力應對旅程的挑戰並取得成功，就像我們在其他業務中所展示的那樣。憑藉 Journeys 團隊的卓越才華、創造力和奉獻精神，其作為青少年時尚鞋類領先目的地的獨特戰略定位以及無與倫比的品牌關係實力，我對我們的未來前景充滿信心。隨著我們不斷完善和發展該計劃及其優先事項，我期待著向您通報我們的最新進展。

Now moving to our outlook. While we were encouraged to see some pickup in trend in Q2, we believe it's prudent to stay cautious given the lack of visibility into an acceleration in consumer demand or economic improvement. Thus far in August, back-to-school sales for Journeys have improved a little further with consumers having a reason to shop and shopping much closer to need. Overall, though, we're not planning for a major change in trend for the balance of the year. As I said, we have, however, moved quickly to inject the assortment with more freshness and into demand goods and expect to see some impact through the back half from these efforts, especially in Q4 during the holidays.

現在轉向我們的展望。雖然我們對第二季度趨勢有所回升感到鼓舞，但我們認為，鑑於消費者需求加速或經濟改善缺乏可見性，保持謹慎是明智的做法。 8 月份到目前為止，Journeys 返校季銷售略有改善，消費者有理由購物，而且購物更貼近需求。但總體而言，我們並不打算在今年餘下時間裡對趨勢進行重大改變。正如我所說，然而，我們已迅速採取行動，將更多的新鮮度注入需求商品中，並預計這些努力將在下半年產生一些影響，特別是在第四季度的假期期間。

Before I pass the call to Tom, I would like to thank our employees for your resilience, tremendous efforts and dedication, which makes all the difference navigating challenging times like these. I'm proud to work with such an inspired group of people. Our businesses are in strong and differentiated strategic positions and means something to the consumer. We have a track record of managing well through adverse cycles, and I'm confident that once again, we will succeed.

在我把電話轉給湯姆之前，我要感謝我們的員工的韌性、巨大的努力和奉獻精神，正是你們讓我們度過了這樣充滿挑戰的時期。我很自豪能與這樣一群充滿靈感的人一起工作。我們的業務處於強大且差異化的戰略地位，對消費者來說意義重大。我們擁有成功應對逆週期的良好記錄，我相信我們將再次取得成功。

And with that, I'll hand it over to Tom.

這樣，我就把它交給湯姆了。

Thanks, Mimi. While the second quarter was challenging, and we were encouraged that our profitability came in ahead of expectations in the current climate. We not only have a solid foundation in place to navigate the current consumer environment but also remain confident that our footwear-focused strategy can continue to drive strong results over time.

謝謝，咪咪。儘管第二季度充滿挑戰，但我們的盈利能力超出了當前環境下的預期，這讓我們感到鼓舞。我們不僅擁有應對當前消費環境的堅實基礎，而且對我們以鞋類為中心的戰略能夠隨著時間的推移繼續帶來強勁的業績充滿信心。

Turning to our results for the quarter. Consolidated revenue was $523 million, down 2% compared to last year and down 3% on a constant currency basis. With the stronger result relative to expectations driven primarily by Journeys and Schuh. While the Journeys consumer remained discerning when it came to spending, the magnitude of store channel traffic and sales decline improved versus Q1. And our digital business saw a nice acceleration in year-over-year growth, increasing double digits with particular strength in July as back-to-school approached.

轉向我們本季度的業績。綜合收入為 5.23 億美元，比去年下降 2%，按固定匯率計算下降 3%。與主要由 Journeys 和 Schuh 推動的預期相比，結果更為強勁。儘管旅程消費者在消費方面仍然保持敏銳，但商店渠道客流量和銷售額下降的幅度與第一季度相比有所改善。我們的數字業務同比增長出現了良好的加速，隨著返校的臨近，7 月份增長尤其強勁，達到了兩位數。

Our total comps were down 2% 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 6% and while direct comps were up 14%. But business Schuh total comps increased 17%, J&M total comps increased 12%, and Journeys' total comps were down 11%.

我們的總比較下降了 2%，因為 Schuh 和 J&M 強勁的兩位數增長被 Journeys 的負比較所抵消。按渠道劃分，商店總銷售額下降了 6%，而直營店銷售額則增長了 14%。但 Business Schuh 的總比較增長了 17%，J&M 的總比較增長了 12%，Journeys 的總比較下降了 11%。

Overall gross margin was up 20 basis points as compared to last year. Although Journeys' gross margin declined, the decrease was less than anticipated and was more than offset by improvements in all our other businesses. As compared to last year, our Journeys gross margin was primarily driven by incremental markdowns to clear product in the current environment. Overall, we are pleased with the improvement in our other businesses as our initiatives to expand gross margin continue to gain traction.

整體毛利率較去年上升20個基點。儘管Journeys 的毛利率有所下降，但降幅低於預期，並且被我們所有其他業務的改善所抵消。與去年相比，我們的旅程毛利率主要是由當前環境下清倉產品的增量降價推動的。總體而言，我們對其他業務的改善感到滿意，因為我們擴大毛利率的舉措繼續受到關注。

By business, Journeys gross margin was down 100 basis points Schuh's gross margin was up 280 basis points as the division benefited from an elevated product mix and assortment and reduce duties as a result of adding an Ireland-based distribution center. J&M's gross margin was up 60 basis points as airfreight tailwinds and better product mix more than offset higher markdowns and closeouts. Finally, Genesco Brands Group's gross margin surpassed our expectations in the quarter, up 500 basis points, a stronger operating and supply chain efficiencies took hold and the division benefited from price increases and a product mix shift.

按業務劃分，Journeys 的毛利率下降了 100 個基點，而 Schuh 的毛利率則上升了 280 個基點，因為該部門受益於產品組合和品種的增加，以及由於增加了愛爾蘭配送中心而減少了關稅。由於空運順風和更好的產品組合抵消了更高的降價和清倉，強生的毛利率增長了 60 個基點。最後，Genesco Brands Group 本季度的毛利率超出了我們的預期，增長了 500 個基點，運營和供應鏈效率增強，該部門受益於價格上漲和產品組合轉變。

Moving down the P&L. Adjusted SG&A expense was 49.6% of sales, an increase of 400 basis points over last year. Given that we are at minimum levels of expenses at this lower volume time of year, it is difficult to drive them any lower in response to sales, particularly as it pertains to selling salaries. In addition, we are experiencing hourly wage pressures. While our time studies have yielded valuable insights, converting them into store selling efficiencies is only beginning to take hold. As a result, we incurred higher-than-expected selling salaries.

損益表向下移動。調整後的 SG&A 費用佔銷售額的 49.6%，比去年增加了 400 個基點。鑑於在一年中銷量較低的時期，我們的支出處於最低水平，因此很難因銷售而降低支出，特別是與銷售工資有關。此外，我們還面臨著小時工資壓力。雖然我們的時間研究已經產生了有價值的見解，但將其轉化為商店銷售效率才剛剛開始發揮作用。結果，我們的銷售工資高於預期。

In addition, we recorded higher expenses to drive our technology initiatives as well as increased expenses in our divisions that are growing. However, the deleverage would not have been as steep had we not reversed approximately $5 million of incentive comp expense last year. Excluding the incentive comp comparison, Operating expenses deleveraged 310 basis points. When also adjusting for the incentive comp comparison, Journeys expenses were relatively flat on a dollar basis to last year.

此外，我們還記錄了推動技術計劃的費用增加以及不斷增長的部門的費用增加。然而，如果我們去年沒有扭轉大約 500 萬美元的激勵補償費用，去槓桿化不會那麼嚴重。不包括激勵補償比較，運營費用去槓桿化了 310 個基點。當對激勵補償比較進行調整時，旅程費用以美元計算與去年相比相對持平。

Low-borrowing overall occupancy cost and reducing the amount of fixed expense and the store channel remains a key priority, and we continue to make good progress. In Q2, we achieved a 15% reduction in straight-line rent expense on 59 lease renewals across the company with an average term of approximately 3 years. This brings our year-to-date renewals to 96. With over 50% of our fleet coming up for renewal in the next couple of years, we have a lot of opportunity to capture additional savings.

低借貸整體入住成本以及減少固定費用和商店渠道仍然是我們的首要任務，我們繼續取得良好進展。第二季度，我們在全公司範圍內進行了 59 次續租，平均租期約為 3 年，直線租金費用減少了 15%。這使得我們今年迄今為止的續約次數達到了 96 次。我們超過 50% 的機隊將在未來幾年內進行續約，因此我們有很多機會獲得額外的節省。

In summary, for the second quarter, we incurred a better-than-expected adjusted operating loss of $10 million compared to adjusted operating income of $10 million for Q2 last year. This all resulted in an adjusted diluted loss per share of $0.85 for the quarter, which compared to earnings per share of $0.59 last year. Increased interest expense and a reduced share count also contributed to the decline in EPS.

總而言之，第二季度我們的調整後營業虧損為 1000 萬美元，好於預期，而去年第二季度調整後營業收入為 1000 萬美元。這一切導致本季度調整後的每股攤薄虧損為 0.85 美元，而去年的每股收益為 0.59 美元。利息支出的增加和股票數量的減少也導致了每股收益的下降。

Turning now to capital allocation of the balance sheet. We ended the quarter as planned in a net borrowing position. We are pleased inventories were well controlled, down 3% to last year, achieving our goal to be below last year's levels. With respect to Journeys specifically, we were able to adjust receipts and ended the quarter with inventories 15% lower than last year and better positioned to invest in the newest trends we need in the assortment.

現在轉向資產負債表的資本配置。我們按計劃以淨借款頭寸結束本季度。我們很高興庫存得到了很好的控制，比去年下降了 3%，實現了低於去年水平的目標。特別是在旅程方面，我們能夠調整收入，並在本季度結束時庫存比去年減少了 15%，並且能夠更好地投資於我們所需的產品類別的最新趨勢。

J&M and Schuh inventories grew compared to last year to support the higher levels of demand in their businesses. We will continue to work with our brand partners to manage our inventory levels and adjust our product assortments to the back half of the year. Capital expenditures in Q2 were $18 million with investments primarily directed to our digital and omnichannel initiatives and new stores. We opened 10 stores, which were primarily off-mall and in outlets and closed 31 to end the quarter with 1,375 total stores.

J&M 和 Schuh 的庫存較去年有所增長，以支持其業務更高的需求水平。我們將繼續與品牌合作夥伴合作，管理我們的庫存水平，並在下半年調整我們的產品種類。第二季度的資本支出為 1800 萬美元，投資主要用於我們的數字和全渠道計劃以及新商店。我們開設了 10 家商店，主要位於商場外和奧特萊斯內，並在本季度末關閉了 31 家商店，商店總數達到 1,375 家。

Finally, we repurchased 1 million shares during the quarter or 8% of total outstanding shares for $23 million, leaving $52 million on our current authorization. We continue to holistically review our cost structure, and we continue to anticipate achieving an annualized run rate of up to $40 million in cost savings in fiscal '25, approximately $20 million of which will be realized in fiscal '24. We are also shifting more fixed cost to be variable, thereby decreasing our sensitivity to revenue swings during times of economic turbulence. These actions to shore up our cost structure are designed to maximize operating leverage and provide a meaningful lift in operating income and EPS growth with sales rebound.

最後，我們在本季度以 2,300 萬美元回購了 100 萬股股票，即已發行股票總數的 8%，目前授權還剩 5,200 萬美元。我們將繼續全面審查我們的成本結構，並繼續預計在 25 財年實現高達 4000 萬美元的年化成本節省，其中約 2000 萬美元將在 24 財年實現。我們還將更多的固定成本轉變為可變成本，從而降低了我們在經濟動盪時期對收入波動的敏感度。這些支撐我們成本結構的行動旨在最大限度地提高運營槓桿，並隨著銷售反彈，顯著提昇運營收入和每股收益增長。

Regarding store closures, we closed 54 Journeys stores to the end of Q2 or roughly 5% of the total fleet. These were largely mall-based locations. To help you think about the positive impact to our P&L, the savings from 100 Journeys stores we've targeted to close eliminates roughly $25 million in cost from SG&A expense which will mainly benefit fiscal '25. This is in addition to the $40 million of annualized run rate cost savings. And as Mimi mentioned, we only need to recapture the small portion of those lost sales digitally or via a nearby store to have a net neutral effect on operating income.

關於門店關閉，截至第二季度末，我們關閉了 54 家 Journeys 門店，約佔總門店數量的 5%。這些地點主要位於購物中心。為了幫助您思考對我們損益表的積極影響，我們計劃關閉 100 家 Journeys 商店，從而節省大約 2500 萬美元的 SG&A 費用，這將主要有利於 25 財年。這還不包括 4000 萬美元的年化運行成本節省。正如 Mimi 提到的，我們只需要通過數字方式或通過附近的商店重新奪回銷售損失的一小部分，即可對營業收入產生淨中性影響。

Now turning to guidance. Although Q2 results were better than we initially expected, the consumer environment remains uncertain. As such, we believe it's prudent to retain our cautious view for fiscal '24 and not assume a significant change in current sales trends through the balance of the year. We continue to expect the challenging Journeys consumer. And while we expect Schuh and J&M to continue performing well, we are seeing some continued pressure in Q3 in the wholesale channel.

現在轉向指導。儘管第二季度業績好於我們最初預期，但消費環境仍存在不確定性。因此，我們認為，謹慎的做法是對 24 財年保持謹慎看法，並且不會假設當前銷售趨勢在今年餘下時間發生重大變化。我們繼續期待充滿挑戰的旅程消費者。雖然我們預計 Schuh 和 J&M 將繼續表現良好，但我們看到批發渠道在第三季度仍面臨一些持續壓力。

On the expense side, even with our cost reduction initiatives, we anticipate some of the escalating cost pressures we experienced in Q2 to continue in the back half, particularly in Q3. In addition, we shifted some marketing expense out of Q2 and into Q3. These factors are offsetting the better-than-expected earnings per share we realized in Q2 and leading us to maintain our full year outlook for adjusted earnings per share of $2 to $2.50 with expectations for earnings to be near the midpoint of this range.

在費用方面，即使我們採取了成本削減舉措，我們預計第二季度經歷的一些不斷升級的成本壓力將在下半年繼續，特別是在第三季度。此外，我們將一些營銷費用從第二季度轉移到第三季度。這些因素抵消了我們在第二季度實現的好於預期的每股收益，並導致我們維持調整後每股收益 2 至 2.50 美元的全年預期，預計收益將接近該範圍的中點。

For the full year, we now expect total sales to decrease 2% to 4% and were down 3% to 5%, excluding the 53rd week. This improvement versus our prior guidance primarily reflects our actual Q2 sales results but also factors in an improvement Schuh. We continue to expect the third 53rd week to add approximately $25 million of sales and have a small negative effect on earnings per share.

對於全年，我們現在預計總銷售額將下降 2% 至 4%，不包括第 53 周則下降 3% 至 5%。與我們之前的指導相比，這一改進主要反映了我們第二季度的實際銷售業績，但也反映了 Schuh 的改進。我們仍然預計第 53 週的銷售額將增加約 2500 萬美元，並對每股收益產生較小的負面影響。

Some color on the total year-end sales by business compared to last year. For Journeys, we now expect a high single-digit decline. For Schuh, we now expect growth in the low double-digit range. reflecting the strong trends in the business. For J&M, we continue to expect a low double-digit growth rate. And for Genesco Brands modest growth in the back half with a slight decline in Q3 offset growth in Q4.

與去年相比，各業務的年終總銷售額有所不同。對於旅程，我們現在預計會出現高個位數的下降。對於 Schuh，我們現在預計增長將在低兩位數範圍內。反映了業務的強勁趨勢。對於 J&M，我們繼續預計較低的兩位數增長率。對於 Genesco Brands 來說，下半年的增長溫和，第三季度的小幅下滑抵消了第四季度的增長。

We now expect gross margin rates to be flat to down 20 basis points compared to our prior view for fiscal year '24 gross margins to be down 30 to 40 basis points. The change in our guidance is being driven by our Q2 actual results and some improvement in Journeys in the fourth quarter as more newness flows into the assortment. We now expect adjusted SG&A as a percentage of sales to deleverage 220 to 240 basis points compared to our prior expectation of 170 to 200 basis points of deleverage. This is largely driven by increased wages and other cost pressures. Despite this pressure, Journeys expenses are expected to decline in the back half of fiscal year '24 as cost savings measures and store closures to take hold. Our guidance assumes no additional share repurchases, which results in fiscal '24 average shares outstanding of 11.4 million, and we expect the tax rate to be approximately 24%.

我們現在預計毛利率將持平或下降 20 個基點，而我們之前預計 24 財年的毛利率將下降 30 至 40 個基點。我們的指導方針的變化是由我們第二季度的實際業績以及第四季度旅程的一些改善推動的，因為更多的新鮮事物湧入了產品類別。我們現在預計調整後的 SG&A 佔銷售額的百分比將去槓桿化 220 至 240 個基點，而我們之前的預期是去槓桿化 170 至 200 個基點。這主要是由工資上漲和其他成本壓力推動的。儘管面臨這種壓力，隨著成本節約措施和商店關閉的實施，Journeys 的支出預計將在 24 財年後半段下降。我們的指導假設沒有額外的股票回購，這導致 24 財年平均已發行股票為 1140 萬股，我們預計稅率約為 24%。

I'd like to now provide some color around Q3. Starting with the top line. We expect Q3 sales to be down low single digits or a similar percentage as the second quarter. With respect to Q3 gross margins, we expect an overall gross margin decrease of 50 to 70 basis points, given incremental markdowns we have built in a Journeys to ensure clean inventory as well as lower margins at J&M due to product mix shift and higher markdowns against last year's extremely lean inventories. Regarding expenses with additional pressure on selling salaries and other cost inflation, we expect roughly 130 to 170 basis points of overall SG&A deleverage in Q3.

我現在想提供有關第三季度的一些顏色。從頂線開始。我們預計第三季度銷售額將下降低個位數或與第二季度相似的百分比。就第三季度的毛利率而言，我們預計整體毛利率將下降50 至70 個基點，因為我們在旅程中進行了增量降價，以確保庫存清潔，以及由於產品組合轉變和更高的降價而導致J&M 的利潤率下降。去年的庫存極其匱乏。關於銷售工資和其他成本通脹帶來的額外壓力，我們預計第三季度整體 SG&A 去槓桿化大約為 130 至 170 個基點。

Finally, for Q3, we expect approximately $2 million of interest expense, a 24% tax rate and a share count of 11 million. In summary, we continue to position ourselves to weather the current consumer headwinds, while simultaneously creating a leaner and more nimble organization that is better equipped to capitalize and deliver even greater shareholder value once the tide turns.

最後，我們預計第三季度的利息支出約為 200 萬美元，稅率為 24%，股票數量為 1100 萬股。總而言之，我們將繼續定位自己以應對當前的消費者逆風，同時創建一個更精簡、更靈活的組織，以便在形勢逆轉時能夠更好地利用資本並提供更大的股東價值。

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

接線員，我們現在準備開始提問。

(Operator Instructions) Our first question is from Mitch Kummetz with Seaport Global Securities.

（操作員說明）我們的第一個問題來自 Seaport Global Securities 的 Mitch Kummetz。

I guess I have several I'll ask few now and then jump back into the queue. Maybe on the Journeys business, you referenced sequential improvement both in the press release and on the call today. Is there any way you can -- and I guess that's continued into August. Can you quantify that? I mean, are we like -- I mean, did you get to like down mid-single by August or kind of just maybe go through that.

我想我有幾個，我現在會問幾個，然後再跳回隊列。也許在旅程業務方面，您在新聞稿和今天的電話會議中都提到了連續改進。有什麼辦法可以嗎——我想這種情況會持續到八月。你能量化一下嗎？我的意思是，我們是不是——我的意思是，你是否在八月之前喜歡上了單曲中段，或者只是經歷了這一過程。

Mitch, thank you for your question. And we were pleased to see improvement overall in the Journeys business. And I'll just remind you that the Journeys comp in the first quarter was down 14%. In the second quarter, we saw that improvement to down 11%. And really, as I said on our last call, when we got into May, the comp for May was pretty much reflective of what we were seeing in the first quarter. The summer was off to a very slow start. And we didn't see comps pick up until June, but they picked up, fly in June and really picked up in July to being down in the high single digits, running down around 9%. And that really carried through into August. And so we've seen that movement from down 14 to down 11% to down 9%.

米奇，謝謝你的提問。我們很高興看到旅程業務的整體改善。我只想提醒您，Journeys 第一季度的業績同比下降了 14%。在第二季度，我們看到下降了 11%。事實上，正如我在上次電話會議上所說，當我們進入五月份時，五月份的業績幾乎反映了我們在第一季度所看到的情況。夏天的開始非常緩慢。直到 6 月份我們才看到比較情況有所回升，但他們在 6 月份開始回升，並在 7 月份真正回升，並下降到高個位數，下降了 9% 左右。這確實持續到了八月。因此，我們看到了從下降 14% 到下降 11%，再到下降 9% 的變化。

Okay. And then it sounds like from a product standpoint, I know last call, you talked about, I think, the last couple of calls, you've talked about kind of the shift away from casual more towards athletic. And I think last call, you talked about strength in clogs. Can you just give us an update in terms of what you're seeing there?

好的。然後，聽起來從產品的角度來看，我知道上次通話，您談到了，我想，最後幾次通話，您談到了從休閒向運動的轉變。我想上次通話時，您談到了木底鞋的力量。您能否向我們介紹一下您在那裡看到的最新情況？

There's been some bouncing around, Mitch, in terms of product. But in general, what we saw and what I described coming out of the pandemic is that our customers, our teen customers gravitated toward what we call the casual side versus fashion athletic. And our teen always has a huge complement of fashion athletic in their closet. It's what they were on a day-to-day basis. But fashion swung much more to casual driven by the purchases of more sandals, more boots, more shoes versus what we call fashion athletic.

米奇，在產品方面出現了一些變化。但總的來說，我們所看到的以及我所描述的大流行病後的情況是，我們的客戶，我們的青少年客戶傾向於我們所說的休閒裝，而不是時尚運動裝。我們青少年的衣櫥裡總是備有大量時尚運動服飾。這就是他們的日常。但隨著人們購買更多的涼鞋、靴子、鞋子，而不是我們所謂的時尚運動鞋，時尚更多地轉向休閒風格。

And in ups and downs, we're still seeing the strength within the casual side in terms of what customers are buying. And I've described before is that if you go back to winter, we saw a lot of trading down from tall boots into shorter boots what our teams are liking is slipper like product but a little bit more structured. So clogs I've talked about as well. There are a number of different brands that are representing the clog style. And that's a nice trend that we are seeing.

在起起落落中，我們仍然看到休閒方面在客戶購買方面的優勢。我之前已經描述過，如果你回到冬天，我們會看到很多人從高筒靴換成短筒靴，我們的團隊喜歡的是類似拖鞋的產品，但結構更加結構化。我也談到了木底鞋。有許多不同的品牌代表木鞋風格。這是我們看到的一個很好的趨勢。

We are actually getting some early reads on fall product interestingly. It's still it's still quite hot in many parts of the United States. And -- but we are seeing that there is some more interest and more appetite in product for the fall. And so I think in general, the consumer has been sitting on the sidelines. They've been picking and choosing what they want to buy, but they -- and I talked a lot about the appetite for newness, which is driving what our consumer purchase behavior is responding to more than anything else. And so that appetite for newness, we have seen translate into appetite for more fall and winter type product despite the fact that it's still summertime.

實際上，我們正在早期閱讀一些有趣的秋季產品。美國許多地方仍然很熱。而且 - 但我們發現人們對秋季產品有更多的興趣和胃口。所以我認為總的來說，消費者一直處於觀望狀態。他們一直在挑選自己想買的東西，但他們和我談了很多關於對新鮮事物的興趣，這比其他任何因素都更能推動我們的消費者購買行為。因此，我們看到，儘管現在還是夏季，但對新鮮事物的興趣轉化為對更多秋冬類型產品的興趣。

And then on Schuh, obviously, that business is trending very well. You referenced some market share gain there. I guess I'm curious how much of this is -- anything you talked about kind of a better assortment. How much of this is the assortment is that much better? Maybe the consumer in the U.K. is stronger. The competitive landscape has changed more there than here. Can you maybe parse that out a little bit more?

顯然，在 Schuh 看來，該業務的發展趨勢非常好。您提到了那裡的一些市場份額增長。我想我很好奇這有多少——你所說的任何東西都是更好的分類。這個品種有多少是更好的？也許英國的消費者更強大。那裡的競爭格局比這裡發生了更大的變化。你能再解析一下嗎？

Yes. There are lots of dynamics within the U.K. market. Schuh business has performed just remarkably well in the face of pretty extreme headwinds. There was a lot of change in the consumer in the retail landscape. There were a lot of retail store closures and the like, but that's largely behind us, and we're measuring against a market that has stabilized from the point of retail store closures. And so against the backdrop of a consumer environment in terms of inflation being high in terms of just overall spending power on the part of the consumer being competed away, Schuh is outshining competition and truly taking market share.

是的。英國市場充滿活力。面對相當極端的逆風，舒的業務表現非常好。零售環境中的消費者發生了很大的變化。有很多零售店關閉等情況，但這基本上已經過去了，我們正在衡量零售店關閉後已經穩定下來的市場。因此，在通貨膨脹較高、消費者整體消費能力受到競爭的消費環境背景下，舒赫在競爭中脫穎而出，真正佔領了市場份額。

And so the measurement of market share is that the compelling assortments that Schuh's offering the great service within stores, the terrific abilities on the website is the amplified marketing and the specific marketing to the Schuh consumer is resonating and working really well. So it's a combination of lots of factors in addition to access to more and better of our allocated product that's what's working well, and that's been a pretty remarkable move up to number 10 in the overall market. And that's a movement of 3 places overall. So it is a gaining of market share because of how well that team has created strategies to go after the market and how effectively they've executed.

因此，衡量市場份額的標準是，Schuh 在商店內提供優質服務的引人注目的品種、網站上出色的功能、放大的營銷以及針對 Schuh 消費者的特定營銷是否能引起共鳴並且效果非常好。因此，除了獲得更多更好的分配產品之外，這是許多因素的結合，這才是運作良好的原因，並且在整個市場中上升到第十名是一個非常了不起的進步。總共移動了 3 位。因此，這是市場份額的獲得，因為該團隊制定了追逐市場的策略以及執行的效率。

Okay. And then one more, and I'll get into it back in the queue. You mentioned some of the challenges around wholesale. I think you referenced some weakness for J&M in the quarter. And then also, have you changed in your outlook for the back half. Can you say what J&M wholesale was in the quarter? And then can you maybe just again add a little bit more color in terms of how you're thinking about wholesale, whether it's for J&M or the other brands for the back half?

好的。然後再來一個，我會回到隊列中。您提到了批發方面的一些挑戰。我認為您提到了強生本季度的一些弱點。另外，你對後半段的看法是否發生了變化？您能透露一下本季度 J&M 的批發情況嗎？然後，您是否可以在批發方面再次添加一點色彩，無論是 J&M 還是其他品牌的後半部分？

The way to think about that, Mitch, is that the one way you can get to it because we didn't break it out specifically, is that J&M's comps and that's really retail stores and e-commerce were plus 12%, and the growth in sales overall for the business was up 4%. So you can get a measure of the overall wholesale headwinds there.

米奇，思考這個問題的方法是，你可以得到它的一種方法，因為我們沒有具體細分，那就是 J&M 的比較，即真正的零售商店和電子商務，增長了 12%，並且增長該業務的整體銷售額增長了4%。這樣你就可以衡量那裡的整體批發逆風。

And with what we're seeing, and I think what many in the industry are talking about is that given the consumer environment, the -- our wholesale customers, that is our retail partners are just being very conservative. And right now, the number 1 thing is to keep inventories clean. And even when -- and to keep them low, and even when product is selling through nicely as it is evidenced by the great sell-through in our direct channels. Our partners are being cautious. And I think that they just are coming off of a huge bulge of inventory and want to make sure that they are able to keep inventories in line.

根據我們所看到的情況，我認為業內許多人正在談論的是，考慮到消費環境，我們的批發客戶，也就是我們的零售合作夥伴，都非常保守。目前，首要任務是保持庫存清潔。即使在產品銷售良好的情況下——並保持較低的價格，正如我們直接渠道中的出色銷售所證明的那樣。我們的合作夥伴持謹慎態度。我認為他們剛剛擺脫了庫存的巨大膨脹，並希望確保他們能夠保持庫存穩定。

And so there's tended to be really pronouncements across the board, again, in spite of sell-throughs, great sell-throughs within particular brands. And so we have seen that, in general, on the branded side of our business and have reflected that into our overall guidance for the back part of the year.

因此，儘管銷售量很大，但特定品牌的銷售量卻很高，因此往往會再次發布全面的聲明。因此，總的來說，我們在我們業務的品牌方面看到了這一點，並將其反映到我們今年下半年的總體指導中。

Our next question is from Corey Tarlowe with Jefferies.

我們的下一個問題來自 Jefferies 的科里·塔洛 (Corey Tarlowe)。

Great. I was wondering if you could talk about some of the momentum that you've seen at Johnston & Murphy. You mentioned that comps were up fairly strongly. So it would be great if you could just double-click into what's driving that momentum and what you expect to head at the division.

偉大的。我想知道您是否可以談談您在 Johnston & Murphy 看到的一些動力。您提到公司業績增長相當強勁。因此，如果您可以雙擊了解推動這一勢頭的因素以及您期望在該部門領導的內容，那就太好了。

Corey, thank you for that question. We're very excited about our prospects for J&M. It's one of the most exciting opportunities for growth within our company and very much aligned with our strategy to grow the branded side of our business.

科里，謝謝你提出這個問題。我們對 J&M 的前景感到非常興奮。這是我們公司內部最令人興奮的增長機會之一，並且與我們發展品牌業務的戰略非常一致。

What we did, what that team did in being really hard hit during the pandemic was to pivot much harder into casual and into comfort. And it's great product with great styling, but also with special technical features with proprietary chassis systems. It's waterproofing features, it's smart moisture wicking technology, and we've been investing a lot in the product. And so it's a comfortable product. It's a product that's really filled with great features, and it's much more casual. In prior times, we have been focused on a shift into casual might mean trading down average selling prices for our footwear. But because we have built in technology, we're actually able to achieve pretty similar overall pricing for casual products.

我們所做的，該團隊在大流行期間遭受嚴重打擊時所做的就是更加努力地轉向休閒和舒適。它是一款出色的產品，具有出色的造型，而且還具有專有底盤系統的特殊技術功能。它具有防水功能、智能吸濕排汗技術，我們在該產品上投入了大量資金。所以這是一款舒適的產品。這是一款真正充滿了強大功能的產品，而且更加休閒。以前，我們一直專注於轉向休閒可能意味著降低鞋類的平均售價。但由於我們擁有內置技術，我們實際上能夠為休閒產品實現非常相似的總體定價。

And in addition to that, the team has done quite a tremendous job of proliferating categories and building these technical features into the apparel and the accessories. And so I talked about our overall apparel and accessory sales being up 20%. They now comprise overall 40% of our direct-to-consumer sales. And so in general, our customer really likes what they're seeing. They're seeing an opportunity to buy product that doesn't -- that they doesn't have in their closets right now, and it's just fantastic when you put on the shoes, you put on the [parable] it is so comfortable. It is so good looking.

除此之外，該團隊在增加品類並將這些技術功能融入服裝和配飾方面做了大量工作。我談到我們的整體服裝和配飾銷售額增長了 20%。目前，它們占我們直接面向消費者銷售額的 40%。所以總的來說，我們的客戶非常喜歡他們所看到的。他們看到了一個機會去購買那些他們現在衣櫃裡還沒有的產品，當你穿上鞋子時，感覺太棒了，你穿上[寓言]，它是如此舒適。真是太好看了。

And so there's opportunities for further expansion into other categories, expansion into blazers, we've been doing really well this season. We have expanded into a boys business as well. And we think right now the opportunity is to build brand awareness. Our customers like what they're seeing. Some of our more recent research has said that we have opportunities to drive further awareness, and that's what we're intending to do.

因此，我們有機會進一步擴展到其他類別，擴展到西裝外套，我們本季做得非常好。我們也已擴展到男孩業務。我們認為現在的機會是建立品牌知名度。我們的客戶喜歡他們所看到的。我們最近的一些研究表明，我們有機會提高人們的認識，這就是我們打算做的。

Great. That's very helpful. And then just secondly, on inventory. It seems like you've made some really nice progress there. Could you maybe talk about how you expect inventories to trend throughout the rest of this year? And maybe the associated impact on margin. It seems like your inventories maybe even be in a better place than the industry more broadly. So curious just to get a sense for where you're at on that journey.

偉大的。這非常有幫助。其次，關於庫存。看起來你已經取得了一些非常好的進展。您能否談談您預計今年剩餘時間庫存的趨勢如何？也許還有對利潤率的相關影響。看起來你的庫存甚至可能比整個行業更好。很好奇只是想了解一下您在這段旅程中所處的位置。

Yes, Corey, this is Tom. Good question. We're really pleased with what we've been able to do with our inventories. The Journeys Group continues to have strong relationships with all its key vendors and those vendors work and the merchandising team works very closely with those key vendors. Making sure we have the right product at the right time and the appropriate inventory balance, so we can mitigate [month] balance. So for terms of trends going forward, you saw the overall inventory was down 2% to 3% at the end of the second quarter. We expect to even continue to improve on that for the third quarter and the fourth quarter.

是的，科里，這是湯姆。好問題。我們對庫存的處理非常滿意。 Journeys Group 繼續與其所有主要供應商保持牢固的關係，並且這些供應商和銷售團隊與這些主要供應商密切合作。確保我們在正確的時間擁有正確的產品和適當的庫存餘額，以便我們可以減輕[月]餘額。因此，就未來趨勢而言，第二季度末整體庫存下降了 2% 至 3%。我們預計第三季度和第四季度的表現將繼續改善。

And Journeys specifically, you saw it was down at the end of the second quarter, 15%, and we expect similar kind of results in the third quarter and the fourth quarter. So I'm really pleased with that. And I think in terms of how that impacts margins going forward, we feel a little bit more bullish in the fourth quarter on Journeys margin as a result of that. Because we're going to end the year with an inventory position of -- with much more of their current relevant product that's selling well vis-a-vis a year ago. So really good what we've done with inventory. We've got continued processes in place and the business is driving to continue to watch inventories going forward and help -- which will help with the margins as well.

具體而言，Journeys 在第二季度末下降了 15%，我們預計第三季度和第四季度也會出現類似的結果。所以我對此非常滿意。我認為，就這對未來利潤率的影響而言，我們對第四季度的旅程利潤率感到更加樂觀。因為我們到年底的庫存狀況將是——與一年前相比，他們當前的相關產品銷售情況要好得多。我們在庫存方面做得非常好。我們已經制定了持續的流程，並且業務正在推動繼續關注未來的庫存並提供幫助——這也將有助於提高利潤。

As Tom said, our merchants have done a great job of managing inventory. But what's so good about this is it gives us lots of flexibility to chase into the newness that I've been talking about. We, in fact, have been able to do that. And so we've got ultimate flexibility to be able to bring in the product we need to be able to drive that business.

正如湯姆所說，我們的商家在庫存管理方面做得很好。但這樣做的好處是它給了我們很大的靈活性來追求我一直在談論的新鮮事物。事實上，我們已經能夠做到這一點。因此，我們擁有極大的靈活性，能夠引入推動業務發展所需的產品。

We now have some follow-up question from Mitch Kummetz with Seaport Global.

現在我們收到 Seaport Global 的 Mitch Kummetz 提出的一些後續問題。

I've got another handful. I hope you'll indulge me. On the Journeys guide for the year. It looks like it's improved from down low doubles to down high singles. So can you kind of walk through sort of what's implied for the back half of the year. I mean, are you looking at like sort of down high singles in 3Q down mid-singles in Q4? Is that kind of the trajectory that you think that business is on?

我還有一把。我希望你能縱容我。在今年的旅行指南上。看起來它從低低雙打改進為低高單打。那麼您能否大致了解一下今年下半年的情況。我的意思是，您是否正在考慮第三季度的高單打和第四季度的中單打？您認為企業的發展軌跡是這樣的嗎？

Let me talk generally about that and let Tom be able to weigh in. But specifically, the approach that we have taken is that we believe it's prudent to just keep extrapolating the current trend, Mitch. So there's been a little bit of pickup in the current trend. And so we're incorporating that into our overall thinking. But we're not anticipating that there's going to be a big pickup in the consumer market. We're not expecting that any major economic improvement or decline in the back part of the year, we're just extrapolating out the trend.

讓我籠統地談談這一點，並讓湯姆能夠發表意見。但具體而言，我們採取的方法是，我們認為繼續推斷當前趨勢是明智的，米奇。因此，當前趨勢有所回升。因此，我們正在將其納入我們的整體思維中。但我們預計消費市場不會出現大幅回升。我們預計今年下半年經濟不會出現任何重大改善或下降，我們只是推斷出趨勢。

What we are doing though is we are building in this newness that I keep talking about and the product that is resonating with our consumer. And that's what is driving our overall pickup. It is product driven by gaining access to products that we have a good degree of confidence that we'll sell through. And so that's the general approach that we've taken. And I'll turn it over to Tom to give you any more color.

但我們正在做的是，我們正在構建我一直在談論的新穎性以及與我們的消費者產生共鳴的產品。這就是推動我們整體回升的原因。它是由產品驅動的，通過獲得我們對我們能夠銷售的產品有很大的信心。這就是我們採取的一般方法。我會把它交給湯姆給你更多的顏色。

Yes. Mitch, in the third quarter, we're really same expectations as we had 3 months ago for the third quarter. Sort of down relative to the prior year, high single digits to low double digits. And in the fourth quarter, pretty similar expectations as well. Maybe a slight improvement based on some improvement in newness, but really nothing of significance relative essentially pretty much in line with the prior expectations in both the third quarter and the fourth quarter.

是的。米奇，在第三季度，我們對第三季度的預期與三個月前的預期相同。與上一年相比有所下降，從高個位數到低兩位數。第四季度的預期也非常相似。也許是基於新穎性的一些改進而略有改善，但實際上沒有什麼重大意義，與第三季度和第四季度的先前預期基本一致。

Good. And then maybe just to clarify something you said earlier, and reconcile that with your prepared remarks. I think you said that July Journeys comp was minus 9%. And I thought you said in your prepared remarks that August was better than July in Journeys. Is that the case? Was August better than a minus 9%?

好的。然後也許只是為了澄清您之前所說的內容，並將其與您準備好的言論進行協調。我想你說過 7 月旅程的補償是負 9%。我以為你在準備好的發言中說過八月的旅程比七月更好。是這樣嗎？ 8 月份是否比負 9% 更好？

Yes. I think what I was referencing in my prepared remarks, Mitch was the pickup from the second quarter into the third quarter. And so really it was going from the down 11% in the second quarter, which, of course, had sequential improvement into overall improvement into August.

是的。我想我在準備好的發言中提到的，米奇是從第二季度到第三季度的接班人。事實上，第二季度下降了 11%，當然，到了 8 月份，第二季度的整體改善已經連續改善。

Okay. And then you mentioned the confidence that you have in the newness. In your prepared remarks, you also talked about some of the challenges around the athletic inventory overhang. Have you seen any improvement there? Or are you anticipating less of a drag from that on Journeys as we go through the balance of the year?

好的。然後你提到了你對新鮮事物的信心。在您準備好的發言中，您還談到了圍繞運動庫存過剩的一些挑戰。您看到那裡有什麼改進嗎？或者，您是否預計，隨著今年餘下的時間，這對旅程的拖累會減少？

We have been talking for several quarters at this point about the athletic overhang really within the industry, not within the product that we are selling. And initially, I think everybody was anticipating that this overhang would be cleared up by back-to-school. And then the goalposts shifted out until the end of the year. And what we are seeing out in the marketplace, and what we're hearing from other competitors and the like, is that the overhang is still out there, and it will linger certainly through the back part of the year.

幾個季度以來，我們一直在討論行業內的運動懸念，而不是我們銷售的產品內的懸念。最初，我認為每個人都預計這種懸而未決的問題將在返校後得到解決。然後球門柱就移開了，直到年底。我們在市場上看到的情況，以及我們從其他競爭對手等處聽到的情況是，懸而未決的情況仍然存在，而且肯定會持續到今年下半年。

And that's incorporated within our overall thinking. And we are anticipating that by the end of the year, we hopefully that the industry can really move past some of this, but it's still existing today. And markdowns are still being taken pretty significantly. You're not seeing that degree of markdown within. That's not a specific factor that is affecting our business. But what it is doing is suppressing demand for some of the athletic product that we're selling because the deals that are out there on really very good product is pretty attractive.

這已納入我們的整體思路中。我們預計到今年年底，我們希望該行業能夠真正克服其中的一些問題，但它今天仍然存在。而且降價幅度仍然很大。你在裡面看不到那種程度的降價。這不是影響我們業務的具體因素。但它正在抑制對我們正在銷售的一些運動產品的需求，因為真正非常好的產品的交易非常有吸引力。

And then just a couple of last one. Tom, on the Journeys stores, I know you're closing a bunch of stores. Do you have a store count for Journeys at year-end?

然後是最後一個。湯姆，關於旅程商店，我知道你要關閉很多商店。年底您有 Journeys 的商店數量嗎？

I do.

我願意。

I've got kind of a separate one for you, Tom. On the $40 million in cost savings, it sounds like $20 million of that is being realized this year. Can you maybe just kind of walk us through the phasing of that by quarter? Have we already started to see some of that in the first half or the second quarter? And how does that kind of play out over the next couple of quarters? And that's it for me.

湯姆，我給你準備了一份單獨的。就 4000 萬美元的成本節省而言，聽起來今年將實現 2000 萬美元。您能否向我們介紹一下按季度分階段進行的情況？我們是否已經在上半場或第二季度開始看到一些這樣的情況？在接下來的幾個季度中，這種情況會如何發展？對我來說就是這樣。

So answer to the first question. The projected Journeys store count is 1,057 at the end of the year. And then -- on the cost savings. Yes. In terms of cost savings, Mitch, most of the costs will still be in the fourth quarter. There will be some, some in the third quarter, but most of it is still driven in the fourth quarter. And we're still confident -- still feel confident about what we're doing from that perspective.

那麼回答第一個問題。預計到年底 Journeys 商店數量將達到 1,057 家。然後是關於成本節約。是的。在節省成本方面，Mitch，大部分成本仍將在第四季度。會有一些，有一些是第三季度，但是大部分還是第四季度帶動的。我們仍然充滿信心——從這個角度來看，我們仍然對我們正在做的事情充滿信心。

In addition to -- we did -- as we talked about, we are -- have a lot of initiatives in place relative to selling salaries, and we're losing a lot fewer hours relative to the prior year in selling salaries. At the same time, some of the traction we're getting in terms of reducing those salaries is not what we originally expected, but we'll continue to work on that. We still -- we also still continue to yield some selling salary savings. We also still have some good initiatives in place outside of selling salaries or we'll continue to double down on our occupancy cost going forward. We've got some initiatives in the branded group as well in terms of what we can do to reduce our expenses there.

除此之外，正如我們所談到的，我們還採取了許多與銷售工資相關的舉措，而且與上一年相比，我們在銷售工資方面損失的時間要少得多。與此同時，我們在降低工資方面獲得的一些動力並不是我們最初預期的，但我們將繼續努力。我們仍然——我們仍然繼續產生一些銷售工資儲蓄。除了銷售工資之外，我們還採取了一些良好的舉措，否則我們將繼續加倍降低未來的入住成本。我們在品牌集團也採取了一些舉措來減少那裡的開支。

And we also have some procurement initiatives in place relative to outside spend that will continue to work on that. And then we've also have some good visibility and line of sight on what additional cost savings we'll look for next year as well. Pretty similar categories for next year as well. So good line of sight on that, good confidence that we'll achieve that again to the original question. There's more of it in the fourth quarter. I think another thing just to point out in the fourth quarter that in this year, the Journey's fourth quarter or expenses absorbed a 53rd week of expenses as well.

我們還制定了一些與外部支出相關的採購計劃，這些計劃將繼續發揮作用。然後，我們對於明年還將尋求哪些額外的成本節省也有了一些良好的了解和視線。明年的類別也非常相似。對此的視線非常好，我們有信心再次實現最初的問題。第四季度還有更多這樣的事情。我想在第四季度指出另一件事，今年，旅程的第四季度或費用也吸收了第 53 週的費用。

So when you adjust for that and you adjust for a full year of the OpEx impact for store closings in the next year, you really start seeing the opportunity we have here with a reset cost base and you start thinking about sort of modest expectations for the other parts of the business from a sales growth and a margin perspective relative to the success we've seen there. So modest expectations on the other divisions. Even a modest comp improvement with Journeys going forward into next year. And with what we've done over the last 12 months, we bought back 13% our share. As you can see, a lot of earnings per share leverage next year.

因此，當你對此進行調整併調整明年商店關閉對全年運營支出的影響時，你真的開始看到我們在這裡重置成本基礎的機會，並且你開始考慮對從銷售增長和利潤率的角度來看，相對於我們在那裡看到的成功，業務的其他部分。對其他部門的期望如此之低。即使是明年的旅程也會有適度的改善。通過過去 12 個月的努力，我們回購了 13% 的股份。正如你所看到的，明年每股收益將發揮很大的槓桿作用。

This does conclude the question-and-answer session. I would like to hand it back to management for closing comments.

問答環節到此結束。我想將其交還給管理層以徵求結束意見。

Thank you for joining us today. We look forward to talking to you on our next quarterly call.

感謝您今天加入我們。我們期待在下一次季度電話會議上與您交談。

This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，感謝您的參與。