Genesco Inc (GCO) 2024 Q3 法說會逐字稿

Good day, everyone, and welcome to the Genesco Third Quarter Fiscal 2024 conference call. Just a reminder, today's call is being recorded. I'll now turn the call over to Dow Macquarie, Senior Director of FP&A. Please go ahead, sir.

大家好，歡迎參加 Genesco 2024 財年第三季電話會議。提醒一下，今天的通話正在錄音。現在我將把電話轉給 FP&A 高級總監 Dow Macquarie。請繼續，先生。

Good morning, everyone, and thank you for joining us to discuss our third 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.

大家早安，感謝您加入我們討論我們的第三季 24 財年業績。電話會議的參與者希望做出反映我們今天預期的前瞻性聲明，但實際結果可能有所不同。

Genesco refers you to this morning's earnings release in the Company's SEC filings, including its most recent 10K and 10Q filings for some of the factors that could cause differences from the expectations reflected in the forward-looking statements made today. Participants also expect to refer to certain adjusted financial measures during the call.

Genesco 請您參考今天上午公司向 SEC 提交的財報，包括其最近的 10K 和 10Q 提交的文件，以了解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一些因素。與會者也希望在電話會議期間提及某些調整後的財務措施。

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.

所有非公認會計原則財務指標均與今天早上新聞稿的附件中的公認會計原則財務指標以及公司網站季度業績部分的時間表進行了核對。

We have also posted a presentation summarizing our results here as well. 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 Mi,

我們也在這裡發布了總結我們結果的簡報。今天與我一起參加電話會議的是董事會主席、總裁兼執行長 Mimi Vaughn 和財務長 Tom George。現在我想把電話轉給Mi，

Thanks Dow good morning, everyone, and thank you for joining us. Before I discuss third quarter performance. Earlier this week, we announced the appointment of Andy Gray as Journeys, new President, Andy, as an exceptional experience later, who brings invaluable expertise in brand building, product innovation and the other areas essential to building journeys businesses for the future.

謝謝大家早安，謝謝您加入我們。在討論第三季業績之前。本週早些時候，我們宣布任命安迪·格雷(Andy Gray) 為旅程新任總裁，安迪為我們帶來了一段非凡的經歷，他在品牌建設、產品創新以及其他對於打造未來旅程業務至關重要的領域帶來了寶貴的專業知識。

And is connection to yield culture and the strong brand relationships to build over his accomplished career, make him the ideal person to lead the talented team we have in place at Journeys as we work to elevate the business and unlock the great potential we see ahead, I look forward to his partnership and I'm excited for him to join recently appointed COO, Mike Fifer, to drive success going forward.

與收益文化和在他成功的職業生涯中建立的強大品牌關係的聯繫，使他成為領導我們在旅程中擁有的才華橫溢的團隊的理想人選，因為我們致力於提升業務並釋放我們看到的未來​​的巨大潛力，我期待與他的合作，也很高興他能加入最近任命的營運長 Mike Fifer，共同推動未來的成功。

Welcome. Andy is now moving to results, following a later start to back-to-school. Sales picked up early in the third quarter and were generally tracking to our expectations. However, we saw a market change in trend in October as well. Later change of seasons need an initial demand and delayed the start of the selling season for fall product.

歡迎。安迪在稍後開始返校後，現在正在走向結果。第三季初銷售額回升，整體符合我們的預期。然而，我們在十月也看到了市場趨勢的變化。後期換季需要初始需求，導致秋季產品的銷售季節開始延遲。

In addition, our branded businesses were impacted by implementation of an ERP system contributing to lower our overall results than we anticipated for the quarter. Despite these headwinds, we were pleased that sales trends within our Journeys business continued to show sequential improvement and shoe and Johnston & Murphy delivered record third quarter sales.

此外，我們的品牌業務受到 ERP 系統實施的影響，導致我們本季的整體業績低於我們的預期。儘管存在這些不利因素，我們很高興我們的旅程業務的銷售趨勢繼續呈現持續改善，鞋類和 Johnston & Murphy 的第三季度銷售額創歷史新高。

The operating environment remains challenging as ongoing inflationary pressures and economic certainty continued to impact discretionary spending as we've seen throughout this year consumers continue to make tough choices on where to spend their dollars often choosing other categories for teenagers against strategies, consumer demand and make the business more productive and more profitable Journeys store closure plans are on track, having closed 75% of the approximately 100 doors planned through the end of Q3 and the remainder targeted to close by year end.

由於持續的通膨壓力和經濟確定性繼續影響可自由支配支出，營運環境仍然充滿挑戰，我們在今年全年看到，消費者繼續在花錢的地方做出艱難的選擇，經常根據策略、消費者需求和決策為青少年選擇其他類別。業務效率更高、利潤更高的Journeys 門市關閉計劃正在按計劃進行，計劃在第三季末關閉約100 家門市中的75%，其餘門市計劃在年底前關閉。

We also remain on pace with efforts to realign our cost base and realized $40 million of annualized costs cost savings by the end of fiscal 25. Finally, we once again had strong inventory discipline in Q3 with total inventory down high single digits year over year.

我們也繼續努力調整成本基礎，到 25 財年末實現了 4000 萬美元的年化成本節省。最後，我們在第三季度再次實行嚴格的庫存紀律，總庫存同比下降了高個位數。

Other key highlights from Q3 included growing our overall comparable digital business by 8% and expanding digital penetration to 21% versus 18% a year ago. We launched buy online takeover offers a variance.

第三季的其他主要亮點包括我們的整體可比數位業務成長了 8%，並將數位滲透率從一年前的 18% 擴大到 21%。我們推出了線上購買收購優惠。

And finally, during the All-Access loyalty program is off to a strong start performing well against our high expectations. Now discussing our individual businesses in more detail and starting with journey is the negative sales trend we expect to continually improve in Q3.

最後，在 All-Access 忠誠度計畫期間，我們取得了良好的開端，表現良好，超越了我們的高期望。現在更詳細地討論我們的各個業務，並從旅程開始，我們預計在第三季將持續改善負面的銷售趨勢。

Back-to-school trends we discussed in late August, accelerated into September, and the changes are merchants were able to effect across the product mix resonated well enabling journeys to outpace our most recent expectations.

我們在 8 月底討論的返校趨勢，在 9 月加速，商家能夠在整個產品組合中產生的變化引起了良好的共鳴，使旅程超出了我們最近的預期。

Sales of must-have items were strong and we can to continue to chase into that product. Even though this wasn't enough to offset the lack of newness and industry discounting in athletic already on anticipated, late start to fall, selling, Journeys traffic and conversion nonetheless improved considerably versus Q2 and quarter to date.

必備品的銷售強勁，我們可以繼續追逐該產品。儘管這不足以抵消體育運動領域缺乏新鮮感和行業折扣的影響，但與第二季度和本季迄今相比，銷售、旅程的流量和轉換率仍顯著改善。

I'm pleased to say that Journeys comps has shifted into positive territory for the first time this year, driven in part by a strong Black Friday weekend. Although the environment remains volatile, consumers are responding well to the you know, we and our brand partners have injected into the product assortment.

我很高興地說，Journeys 的業績今年首次進入正值，部分原因是黑色星期五週末的強勁表現。儘管環境仍然不穩定，但消費者對我們和我們的品牌合作夥伴注入的產品種類反應良好。

We are excited to amplify the journey story to our holiday campaigns, which, among other things will feature more SMS campaign, uses an increase this investment in digital marketing as well as new campaigns and rewards for All Access members.

我們很高興能夠將旅程故事放大到我們的假期活動中，其中包括更多簡訊活動、增加對數位行銷的投資以及針對 All Access 會員的新活動和獎勵。

Now moving to the UK. Despite facing the consumer pull back in October to deliver the strongest constant currency in third quarter sales to date, reflecting our efforts to enhance customer value proposition and access to top tier product, solid double digit sales growth and a 5% comp for us driven by compelling back-to-school assortment led by the kids business, followed by women's.

現在搬到英國。儘管10 月消費者需求回落，但第三季銷售額達到迄今為止最強勁的固定匯率，這反映了我們為增強客戶價值主張和獲得頂級產品而做出的努力，但我們的銷售額實現了兩位數的穩定成長，並在以下因素的推動下實現了5% 的成長：引人注目的返校季產品系列以童裝為主，其次是女裝。

Adding to the outstanding performance who has achieved this year to accomplish this through growth of casual product, aided by higher average selling prices and success and non-footwear categories like backpacks for July and change of seasons and resulting pressure on sales later in the quarter was most pronounced in stores to digital business notch PA positive gains throughout two three and continues to account for nearly 40% of total sales.

今年透過休閒產品的成長取得了出色的業績，得益於更高的平均售價和成功，以及 7 月份背包等非鞋類產品和季節變化以及由此產生的本季度晚些時候的銷售壓力，在商店中，數位業務最為明顯，PA 在整個二、三季中取得了積極的成長，並繼續佔總銷售額的近40%。

Choose growing strength and recognition as the leading fashion footwear destination for the UK days as of mid-October shoe ranked number 10 in UK footwear market share according to cure, maintaining its position after moving it up three spots earlier in the year.

根據Cure的統計，截至10月中旬，作為英國領先的時尚鞋類目的地，其實力和認可度不斷增強，在英國鞋類市場份額中排名第十，在今年早些時候上升了三位之後，保持了其地位。

Loyalty continues to bolster this effort tracking at about 30% of shoes. Q3 sales totals to club members now stand above $2 million and counting with members more highly engaged and purchasing more frequently. Steel is running exciting holiday campaign to surprise and delight customers, including bundled promotions and digital content tied to its loyalty program.

大約 30% 的鞋子的忠誠度繼續支持這種努力。第三季俱樂部會員的銷售額現已超過 200 萬美元，會員的參與度更高，購買頻率更高。 Steel 正在進行令人興奮的假期活動，為客戶帶來驚喜和愉悅，其中包括與其忠誠度計劃相關的捆綁促銷和數位內容。

Turning now to Johnston & Murphy, the brand added to its strong run this year, posting positive sales growth and record third quarter sales despite a unique set of headwinds and a tough multiyear compare. While the challenges J&M encountered from the new ERP system implementation led to some lost sales in Q three.

現在轉向 Johnston & Murphy，該品牌今年繼續保持強勁勢頭，儘管面臨一系列獨特的不利因素和艱難的多年比較，但仍實現了積極的銷售增長和創紀錄的第三季度銷售額。而 J&M 在新 ERP 系統實施中遇到的挑戰導致第三季的一些銷售損失。

More robust modern platform provides greater agility to support J&M growth and the growth of our other branded business. J&M was also not immune to the broader consumer pullback that hits in October, installed sales of outerwear and other fall products cash and will continue to drive results accounting for over 75% of direct to consumer footwear sales apparel as a bright spot growing 7% and together with accessories now accounts for over 40% of J & M's DTC. sales.

更強大的現代平台提供了更大的靈活性，以支持 J&M 的成長和我們其他品牌業務的成長。 J&M 也未能倖免於10 月發生的更廣泛的消費者回調，外套和其他秋季產品的安裝銷售現金，並將繼續推動業績，佔直接面向消費者鞋類銷售的75% 以上，服裝是增長7 % 的亮點，連同配件現在佔 J & M 的 DTC 的 40% 以上。銷售量。

We're benefiting from the all-encompassing changes we made coming out of the pandemic to reposition the business as a more casual multi-category lifestyle brand. Supporting this effort is J & M's insiders affinity program.

我們受惠於疫情結束後所做的全方位變革，將業務重新定位為更休閒的多品類生活風格品牌。支持這項努力的是 J & M 的內在親和力計劃。

Insiders now account for approximately 60% of JNMDTC. revenue was over 60% of new customers joining the program. Looking ahead, we remain very positive on J & M's longer-term potential and are investing against it as part of this next phase of growth, Jan and his partner to the new creative agency to unlock the significant opportunity to increase brand awareness, which currently stands at only 35% and educate consumers about the shift away from its heritage dress shoe legacy.

目前，內部人士約佔 JNMDTC 的 60%。加入該計劃的新客戶的收入超過 60%。展望未來，我們對J & M 的長期潛力仍然非常樂觀，並將對其進行投資，作為下一階段增長的一部分，Jan 和他的新創意機構合作夥伴將釋放提高品牌知名度的重大機會，目前品牌知名度僅佔 35%，並教育消費者如何擺脫傳統正裝鞋的傳統。

This new top of that funnel marketing launches of spring as we expand our marketing reach to broader range of customers were forward, but our Elevate plan, which leverages the elements of our footwear focused strategy and drive action to meaningfully accelerate journeys improvement and top line growth.

隨著我們將行銷範圍擴大到更廣泛的客戶，春季推出的這一新的漏斗行銷頂部是向前推進的，但我們的提升計劃利用了我們以鞋類為中心的戰略要素並推動行動，以有意義地加速旅程改善和營收成長。

Journeys has a proven track record of managing through adverse cycles, responding to changing consumer and fashion dynamics and coming out stronger. On the other side, the fundamental tenants absurd journeys value proposition to customers remain intact. With our focus on fashion footwear and compelling mix of and access to top brands.

Journeys 在管理逆週期、響應不斷變化的消費者和時尚動態以及變得更強大方面有著良好的記錄。另一方面，基本租戶荒謬的旅程對客戶的價值主張保持不變。我們專注於時尚鞋類以及頂級品牌的引人注目的組合和接觸。

No other retailer serves the team consumer quite the same as journeys. While we have much more to unlock as we finish this year and get into fiscal 25, the work we've done to date is paying dividends. Today, I'll highlight the key areas of our plan where we're making good progress.

沒有其他零售商能夠像旅程一樣為團隊消費者提供相同的服務。雖然今年結束並進入第 25 財年，我們還有很多事情需要解鎖，但我們迄今為止所做的工作正在帶來紅利。今天，我將重點介紹我們計劃中取得良好進展的關鍵領域。

Number one, strengthening customer engagement and expanding relationships with our target team customer. Initial results from the All Access loyalty program are very encouraging. With roughly 1.5 million members signed up since launching in July.

第一，加強客戶參與並擴大與目標團隊客戶的關係。 All Access 忠誠度計畫的初步結果非常令人鼓舞。自 7 月推出以來已有約 150 萬會員註冊。

Members are already buying more often than nonmembers and spending more per average order with considerable runway ahead of us were just beginning to maximize our CRM and loyalty data to more strategically targeted customers based on purchase history and brand preferences.

會員已經比非會員更頻繁地購買商品，平均每筆訂單的支出也更高，我們剛開始根據購買歷史和品牌偏好，最大限度地利用我們的CRM 和忠誠度數據，為更具戰略目標的客戶提供服務。

During Q3, we ran integrated campaigns focused on key brand partners to elevate journeys as the destination for these top brands. These included all access tie-ins, in-store presence, campaign, homepage presence and social callouts, number two, elevating product and strengthening our brand relationships.

在第三季度，我們針對主要品牌合作夥伴開展了綜合活動，以將旅程提升為這些頂級品牌的目的地。其中包括所有訪問搭配、店內展示、活動、主頁展示和社交宣傳，第二，提升產品和加強我們的品牌關係。

We've been working diligently with our brand partners to add more differentiation to the Journeys assortment, increase. Our access to the most in-demand brands and styles, expand the number of exclusive and test new brands, which would add new dimensions of the resource.

我們一直在與我們的品牌合作夥伴努力合作，為 Journeys 產品系列增加更多差異化。我們接觸最受歡迎的品牌和款式，擴大獨家數量並測試新品牌，這將增加資源的新維度。

But more than that, we further focus the partners of conversation on a strategic view that reinforces journey value proposition and unique position in accessing the coveted teen customer. While fully repositioning the assortment will take some time. We've made good progress that we will build upon for upcoming seasons.

但更重要的是，我們進一步將對話夥伴集中在策略觀點上，以強化旅程價值主張和在接觸令人垂涎的青少年客戶方面的獨特地位。雖然完全重新定位該品種還需要一些時間。我們已經取得了良好的進展，我們將為接下來的賽季繼續努力。

Number three, sharpening journeys brand marketing, our customer insight work also into the U.S. that while Journeys is top of mind to consumers for certain brands we carry, we have the opportunity and brands we sell. We are applying those learnings to drive stronger awareness and strengthened journeys voice across social channels.

第三，加強旅程品牌行銷，我們的客戶洞察力也深入美國，雖然旅程是我們所經營的某些品牌的消費者的首要考慮，但我們有機會和我們銷售的品牌。我們正在應用這些知識來提高跨社交管道的意識和加強旅程的聲音。

We incur Kris paid social investment for back-to-school and are doubling down our efforts for holiday number four, implementing incremental initiatives to drive digital and omnichannel growth. We recently launched buy online pickup in-store across the Journeys fleet to a strong initial response. We are encouraged by what we're seeing at this early stage in terms of customer adoption and attachment rates.

我們為克里斯返校進行了有償社會投資，並在第四個假期加倍努力，實施漸進計劃以推動數位和全通路成長。我們最近在 Journeys 車隊中推出了線上購買店內取貨服務，並獲得了強烈的初步反應。我們對早期階段所看到的客戶採用率和依戀率感到鼓舞。

When customers pickup in store, although small in total right now, these add-on purchases are driving a meaningful lift in AOV. We're excited to see how focus continues to evolve in our full service environment.

當顧客在商店取貨時，儘管目前總數很小，但這些附加購買正在推動 AOV 的顯著提升。我們很高興看到我們的全方位服務環境中的重點如何繼續發展。

Beyond Vocus as part of our effort to grow journeys digital business, we've also raised product SKU counts on our website and expanded our drop-ship partners to more than 50 and number five, optimizing our juries footprint and driving productivity and efficiency.

除了Vocus 之外，作為我們發展旅程數位業務的一部分，我們還增加了網站上的產品SKU 數量，並將我們的代發貨合作夥伴擴大到50 多個，排名第五，優化了我們的評審團足跡並提高了生產力和效率。

We did implement a key learnings from our store time studies that are having a positive impact on conversion and productivity. These include shortening the time it takes to get shoes from the stockroom and eliminating unproductive daily processes.

我們確實從商店時間研究中學到了一些重要知識，這些知識對轉換率和生產力產生了積極影響。其中包括縮短從庫房獲取鞋子所需的時間以及消除非生產性的日常流程。

Our new point-of-sale hardware and software are also generating additional operating efficiencies and contributing to higher average transaction size.

我們新的銷售點硬體和軟體也提高了營運效率，並有助於提高平均交易規模。

Regarding the store closures I mentioned earlier, we expect to achieve annualized savings of about $25 million, which is in addition to the $40 million of annualized cost savings we're targeting, given that we need very little sales transfer from those stores to achieve a breakeven.

關於我之前提到的關閉商店，我們預計每年可以節省約2500 萬美元，這是我們目標的每年節省4000 萬美元的成本之外的目標，因為我們只需要從這些商店轉移很少的銷售就可以實現收支平衡。

Operating income were deploying customized communications to direct consumers to online Fortune nearby stores. To sum it up, we're pleased with the progress we're making with the Journeys elevate plan and the ongoing improvement in comp sales. The team has worked hard this year to adapt to the dynamic shifts and challenges in the market.

營業收入來自部署客製化通信，引導消費者前往附近的《財富》線上商店。總而言之，我們對旅程提升計畫所取得的進展以及贈品銷售的持續改善感到滿意。今年，該團隊努力適應市場的動態變化和挑戰。

I have strong belief in our abilities to address these challenges and in a much stronger journeys future. Now moving to our outlook.

我堅信我們有能力應對這些挑戰，並堅信我們的未來會更加美好。現在轉向我們的展望。

As we entered the fourth quarter, we saw an acceleration in all selling and positive store traffic with the following a strong start to the holiday season. I'm pleased to say our total company comps are currently running positive quarter to date.

當我們進入第四季度時，我們看到所有銷售都在加速，商店客流量也隨之增加，隨之而來的是假期季節的強勁開局。我很高興地說，到目前為止，我們公司的整體業績目前正處於正成長狀態。

In addition to journey strength, J & M's experienced record online demand and especially Thanksgiving weekend to date leading us more confident we are on the other side of the pullback of October. That said, the environment remains choppy and footwear promotions or even more widespread than we anticipated over the holiday weekend.

除了旅程實力之外，J & M 經歷了創紀錄的線上需求，尤其是迄今為止的感恩節週末，讓我們更有信心應對 10 月的回調。儘管如此，市場環境仍然不穩定，鞋類促銷活動甚至比我們在假日週末預期的更為廣泛。

In response, we've made the strategic decision to increased promotional activity going forward, especially at Journeys over the holidays to drive sales in this competitive environment. The resulting margin impact is reflected in our revised guidance, for which Tom will provide more details.

作為回應，我們做出了策略決策，增加未來的促銷活動，特別是在假期期間的促銷活動，以在競爭激烈的環境中推動銷售。由此產生的利潤率影響反映在我們修訂後的指導中，湯姆將提供更多詳細資訊。

We're largely a non-promotional retailer and plan to stay that way, but I believe this is a moment in time and these actions are appropriate for this season. Before closing, I'd like to thank all our amazing people across our company for your hard work and dedication through this challenging environment.

我們基本上是一家非促銷零售商，並計劃保持這種狀態，但我相信這是一個及時的時刻，這些行動適合這個季節。在結束之前，我要感謝公司所有優秀的員工在這個充滿挑戰的環境中的辛勤工作和奉獻精神。

I appreciate your efforts throughout the year, but especially heading into the busy holiday season. When I'm certain, you'll raise your game to an even higher level as we look forward, I'm very encouraged by the many initiatives that are driving meaningful progress.

我感謝您全年的努力，尤其是在繁忙的假期季節。當我確信，正如我們所期望的那樣，您將把您的遊戲提升到更高的水平時，我對許多推動有意義進展的舉​​措感到非常鼓舞。

The strength of our brands and retail concepts and the strategies we're executing that will show the resilience of our business. And with that, I'll pass the call over to Tom.

我們的品牌和零售理念的實力以及我們正在執行的策略將顯示我們業務的彈性。然後，我會將電話轉給湯姆。

Thanks, Mimi. Our third quarter financial performance not only reflects the challenges and hurdles we faced, but also the progress we've continued to make as we now round out the fiscal year and begin to look to fiscal 25, we believe our solid foundation and increased efforts through financial discipline will position us to drive stronger results.

謝謝，咪咪。我們第三季的財務表現不僅反映了我們面臨的挑戰和障礙，也反映了我們在結束本財年並開始展望 25 財年時繼續取得的進展，我們相信我們的堅實基礎和加大的努力通過財務紀律將使我們能夠取得更好的業績。

Turning to our results for the quarter, consolidated revenue was $579 million, down 4% compared to last year and down 5% on a constant currency basis. But mainly driven by the sales decline in Germany relative to our expectations on loan expected sales and associated deleverage on expenses in our branded businesses and shoe, total comps were down 4%.

轉向我們本季的業績，綜合收入為 5.79 億美元，比去年下降 4%，以固定匯率計算下降 5%。但主要是由於相對於我們對貸款預期銷售額的預期以及我們品牌業務和鞋類支出的相關去槓桿化，德國銷售額下降，總比較下降了 4%。

Although still negative, we were pleased to see another sequential improvement in the trend or journeys. Meanwhile, Cox shoe and J&M remained positive despite the later seasonal transition in our branded businesses.

儘管仍然是負面的，但我們很高興看到趨勢或旅程的再次連續改善。與此同時，儘管我們的品牌業務經歷了較晚的季節性轉變，但考克斯鞋業和 J&M 仍然保持積極的勢頭。

Dealing with this ERP conversion challenges by channel, total store comps were down 7%, while direct comps were up 8%. Business choose total comps increased 5%, J&M total comps increased 1% and Journeys total comps were down 8%.

為了應對按通路劃分的 ERP 轉換挑戰，商店總銷售額下降了 7%，而直接銷售額則增加了 8%。 Business choice 總比較成長了 5%，J&M 總比較成長了 1%，Journeys 總比較下降了 8%。

Overall gross margin was in line with our expectations down 60 basis points compared to last year. By business. Journeys' gross margin was down 110 basis points, mostly due to the expected increase in promotional activities, including introductory coupons for Journeys loyalty program, along with some mix shift choose gross margin was up 100 basis points as the divisions fitted from reduced through these from us through Ireland boost distribution center as well as a more elevated product assortment mix.

整體毛利率比去年下降 60 個基點，符合我們的預期。靠生意。 Journeys 的毛利率下降了 110 個基點，主要是由於促銷活動的預期增加，包括 Journeys 忠誠度計劃的介紹性優惠券，以及一些混合轉變選擇毛利率上升了 100 個基點，因為部門從減少到這些我們透過愛爾蘭增強了配送中心以及更優質的產品種類組合。

James gross margin was down 210 basis points due to a more normalized markdown and close out cadence versus last year.

與去年相比，由於降價和結帳節奏更加正常化，詹姆斯毛利率下降了 210 個基點。

J&M had much more inventory available to school this year versus last because much of last year's product was cotton transit. Finally, Genesco brands group gross margin was up 270 basis points as we continue to benefit from lower freight and logistics cost and price increases.

與去年相比，今年 J&M 為學校提供的庫存要多得多，因為去年的大部分產品都是棉花運輸。最後，Genesco 品牌集團的毛利率上升了 270 個基點，因為我們繼續受益於較低的貨運和物流成本以及價格上漲。

Adjusted SG&A expense was 46.2% of sales, an increase of 190 basis points over last year, with most of the de-leverage driven by the lower journeys sales in absolute dollars, SG&A expenses were flat to last year, in line with our strategic pillar to reshape the cost base to reinvest for future growth.

調整後的SG&A 費用佔銷售額的46.2%，比去年增加190 個基點，其中大部分去槓桿化是由旅行銷售額下降（以絕對美元計）推動的，SG&A 費用與去年持平，這與我們的策略支柱一致重塑成本基礎，為未來成長進行再投資。

We have gained traction with our cost-savings initiatives will help the same time increasing the variability of our expense base. This resulted in reduced occupancy, selling salaries and other store costs and enable us to invest.

我們透過成本節約計畫獲得了關注，同時也有助於增加我們費用基礎的可變性。這導致入住率、銷售工資和其他商店成本減少，使我們能夠進行投資。

This year we invested in systems and people to drive our business forward, which resulted in increased depreciation in Q2. Compensation for new technology initiatives, lowering overall occupancy costs and reducing the amount of fixed expense in the store channel remains a key priority.

今年，我們投資於系統和人員來推動我們的業務發展，這導致第二季的折舊增加。對新技術措施的補償、降低整體佔用成本和減少商店通路的固定費用仍然是關鍵優先事項。

In Q3, we achieved a 16% reduction in straight-line rent expense on 59 lease renewals across the Company with an average term of approximately three years. This brings our year-to-date renewals to 155 with over 50% of our fleet still coming up for renewal in the next couple of years.

第三季度，我們在全公司 59 次續約中實現了直線租金支出減少 16%，平均期限約為三年。這使得我們今年迄今的續約次數達到 155 次，其中超過 50% 的機隊在未來幾年內仍將進行續約。

We have a long runway to capture additional savings. While we have been making nice headway on rent savings and savings on selling salaries, increase in wages continue to be an area of challenge. All told in an environment where these and other cost pressures have been probably Pro prevalent and ubiquitous.

我們有很長的路要走才能獲得額外的節省。雖然我們在租金節省和銷售工資節省方面取得了良好進展，但薪資成長仍然是一個挑戰領域。總而言之，在這些和其他成本壓力可能普遍存在且無處不在的環境中。

We were pleased to hold our SG&A dollars flat two last year. In summary, for the third quarter, we realized adjusted operating income of $11 million compared to adjusted operating income of $26.3 million for Q3 last year.

我們很高興去年的SG&A 美元持平兩成。總之，第三季我們實現調整後營業收入 1,100 萬美元，去年第三季調整後營業收入為 2,630 萬美元。

This all resulted in adjusted diluted earnings per share of $0.57 for the quarter. Versus earnings per share of $1.65 last year. Relative to our internal expectations. The extent of the ERP disruption, coupled with a higher than expected tax rate, had a large impact on this lower EPS result.

這一切導致本季調整後攤薄每股收益為 0.57 美元。去年每股收益為 1.65 美元。相對於我們的內在期望。 ERP 中斷的程度，加上高於預期的稅率，對每股盈餘較低的結果產生了很大影響。

Turning now to capital allocation and the balance sheet. As expected, we ended the quarter and a net borrowing physicians regarding inventory. We were very pleased to keep our inventory levels well controlled, down 8% year over year.

現在轉向資本配置和資產負債表。正如預期的那樣，我們在本季結束時淨借入了醫生的庫存。我們很高興能夠很好地控制庫存水平，比去年同期下降 8%。

With respect to Journeys specifically, we continue to work with our brand partners to just receipts, enabling us to in the quarter with inventories 14% lower than last year and more fully positioned with the new business was needed.

特別是在 Journeys 方面，我們繼續與我們的品牌合作夥伴合作，以確保收入，使我們能夠在本季度將庫存比去年減少 14%，並且需要對新業務進行更全面的定位。

The assortment choose inventories increased compared to last year to support the higher levels of demand in the business. Novel J&M's inventories were down versus a year ago.

與去年相比，品種選擇庫存增加，以支持更高水準的業務需求。 Novel J&M 的庫存較一年前有所下降。

As I mentioned, a significant amount of last year's inventory was in transit and unavailable for sale. Overall, we expect to end this year with inventory down high single digits versus last year as we continue to thoughtfully manage our assortments and keep our inventory position claim entering fiscal 25 capital expenses, which primarily directed to retail stores in our digital and omnichannel initiatives, we opened five stores, which were primarily of malls and outlets and close 20 ending the quarter was 1,360 total stores.

正如我所提到的，去年的大量庫存正在運輸途中，無法出售。總體而言，我們預計今年年底庫存將比去年下降高個位數，因為我們將繼續深思熟慮地管理我們的產品類別，並將我們的庫存頭寸索賠納入25 財年的資本支出，這主要針對我們數字和全通路計畫中的零售店，我們開設了 5 家商店，主要是購物中心和直銷店，截至本季度末，我們開設了近 20 家商店，商店總數為 1,360 家。

Lastly, we didn't repurchase any shares during the quarter and our current authorization remains at $52 million. Over the past five years, we repurchased almost 50% of our outstanding shares. Regarding our cost-savings initiatives, we are working diligently to deliver the annualized run rate of up to $40 million in cost savings by the end of fiscal 25.

最後，我們在本季沒有回購任何股票，目前的授權仍為 5,200 萬美元。過去五年，我們回購了近50%的流通股。關於我們的成本節約計劃，我們正在努力工作，以期在 25 財年末實現高達 4000 萬美元的年化成本節約。

We expect savings from reduced store rents, lower corporate shared services and Journeys central expenses. So showing solid productivity gains, reduce warehouse and logistics costs and reduce freight costs from Omni channel inventory location optimization initiatives.

我們預計，商店租金的降低、企業共享服務的降低和旅程中心費用的降低將節省開支。因此，透過全通路庫存位置優化計劃，可以實現生產力的大幅提升、倉庫和物流成本的降低以及貨運成本的降低。

When you combine our efforts to increase the variability of our cost structure of progress on our cost savings plan, we are on pace to achieve approximately $20 million of cost reductions in fiscal 24, which perspective store closures.

當您結合我們的努力，增加成本節約計劃進度的成本結構的可變性時，我們預計在 24 財年實現約 2000 萬美元的成本削減，這預示著商店的關閉。

We closed 74 Journeys stores to the end of Q3 or roughly 7% for the total fleet since the beginning of this year. These were primarily mall-based locations. As Mary mentioned, the savings from the 100 Journeys stores we aim to close by the end of the year eliminates roughly an additional $25 million in costs from SG&A expense, which on an annualized basis will begin to benefit us in fiscal 25.

截至第三季末，我們關閉了 74 家 Journeys 門市，約佔今年年初以來總門市數的 7%。這些主要是基於購物中心的地點。正如Mary 所提到的，我們計劃在今年年底前關閉100 家Journeys 商店，從而節省下來的成本大約可額外消除2500 萬美元的SG&A 費用，按年化計算，這將在第25 財年開始讓我們受益。

The goal of these cost savings and store closure program is to achieve expense leverage and drive operating margin expansion on more modest increases in sales growth. Now turning to guidance.

這些成本節約和門市關閉計畫的目標是實現費用槓桿，並在銷售成長適度成長的情況下推動營業利潤率擴張。現在轉向指導。

Overall sales trends have accelerated nicely first for into Q4, in part due to positive adjustments we made several months ago to the product assortment that given product lead times are having an impact now at Journeys.

進入第四季度，整體銷售趨勢首先大幅加速，部分原因是我們幾個月前對產品分類進行了積極調整，考慮到產品交付週期現在對 Journeys 產生了影響。

However, the variability in consumer demand we see week-to-week, coupled with a heightened promotional activity at the start of the holiday season, has led us to take a more promotional stance going forward, especially to drive demand and Journeys and remain competitive in this environment axles.

然而，我們看到的消費者需求每週都在變化，再加上假期開始時促銷活動的加強，促使我們在未來採取更多的促銷立場，特別是為了推動需求和旅程並保持競爭力在這種環境下的車軸。

It will also result in some additional gross margin pressure. We now also expect growth. It should be somewhat more muted than our prior expectations, given the softer consumer trends of late, and we expect the ongoing lack of visibility in the wholesale channel to put some pressure on J and in our other branded business.

它還將導致一些額外的毛利率壓力。我們現在也期望成長。鑑於最近消費趨勢疲軟，它應該比我們之前的預期更加溫和，我們預計批發管道持續缺乏可見性會給 J 和我們的其他品牌業務帶來一些壓力。

Combining all these factors, we now expect full year total sales to decrease 1% to 2% versus our prior expectations of down 2% to 4% excluding the 53rd week, which we expect to add approximately $25 million of sales and have a small negative effect on earnings per share.

綜合所有這些因素，我們現在預計全年總銷售額將下降1% 至2%，而我們先前的預期為下降2% 至4%，不包括第53 週，我們預計該週銷售額將增加約2500萬美元，並有小幅負值對每股盈餘的影響。

We expect sales to decrease 2% to 3%, some color by division on the total year-end sales compared to last year. For journeys, we continue to expect a high single digit decline for Sue will continue to expect low double-digit growth for J&M. We now expect high single digit growth for Genesco brands, a low double-digit decline.

與去年相比，我們預計年終銷售額將下降 2% 至 3%，並按部門劃分。對於旅行，我們繼續預計 Sue 將出現較高的個位數下降，而 J&M 將繼續預計較低的兩位數成長。我們現在預計 Genesco 品牌將出現高個位數成長，而低兩位數下降。

We now expect gross margins will be down 40 to 50 basis points compared to our prior view for fiscal 24, gross margin to be flat to down 20 basis points or change in our guidance is driven primarily by increased promotional activities at Journeys going forward, the fourth quarter as well as products product mix shift.

我們現在預計毛利率將比我們先前對 24 財年的預期下降 40 至 50 個基點，毛利率將持平至下降 20 個基點，或者我們的指導變化主要是由於未來旅程的促銷活動增加，第四季度還有產品產品結構的轉變。

We now expect adjusted SG&A as a percentage of sales to deleverage 200 to 220 basis points compared to our prior view, 220 to 240 basis points of deleverage. Given our Q. three extra results and revised assumptions for Q4, we now expect full year adjusted earnings per share or $1.50 to $2 compared to our prior range of $2 to $2.50.

我們現在預期調整後的 SG&A 佔銷售額的百分比將去槓桿化 200 至 220 個基點，而我們先前的觀點是去槓桿化 220 至 240 個基點。鑑於我們第三季的額外業績和第四季度的修訂假設，我們現在預計全年調整後每股收益為 1.50 美元至 2 美元，而我們之前的區間為 2 美元至 2.50 美元。

Our expectation is that we will be near the midpoint of this range. Our guidance assumes no additional share repurchases, which results in fiscal 24 average shares outstanding of approximately $11.4 million, and we expect the tax rate to be approximately 24% to close.

我們的預期是我們將接近該範圍的中點。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約為 1,140 萬美元，我們預計截至收盤時稅率約為 24%。

We continue to take the necessary measures to navigate the current consumer environment while also proactively evolving our company towards a leaner and more agile state to better meet the needs of our consumer, drive stronger profitability and ultimately deliver greater return to our shareholders. Operator will now ready to open the call for questions. Thank you.

我們將繼續採取必要措施應對當前的消費者環境，同時積極將公司發展為更精簡、更敏捷的狀態，以更好地滿足消費者的需求，推動更強的盈利能力，並最終為股東帶來更大的回報。接線員現在準備好開始提問。謝謝。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Mitch Kummetz, Seaport Research.

米奇·庫梅茨，海港研究中心。

Yes, thanks for taking my questions. I guess I've got to do, maybe what you guys reported 2Q. You raised your gross margin outlook, in part of that was because of you are expecting improvement in the journeys for Q2 gross margin with more newness kind of flowing into the store.

是的，感謝您回答我的問題。我想我必須做，也許你們在第二季報告的那樣。您提高了毛利率預期，部分原因是您預計第二季毛利率會有所改善，更多新事物會流入商店。

But I think you also made a comment at the time that like the consumer's looking for two things, must-have product or good deals. And I'm wondering what's changed from three months ago?

但我想你當時也發表了評論，就像消費者在尋找兩件事，必須擁有的產品或優惠的價格。我想知道與三個月前相比有何變化？

Is the numerous not performing as well or well, I would maybe call sort of non-newness, the new assortment is that this requiring, you know, deeper discounts to move the product. Can you just maybe sort of elaborate on that?

是不是很多表現不佳或不好，我可能會稱之為某種非新穎性，新的品種是，這需要，你知道，更大的折扣來移動產品。能詳細說明一下嗎？

Thanks for your question match. And there really has been quite a lot going on and we've seen a lot of up and up than down in the consumer environment over the last few months. And absolutely, the newness is working.

感謝您的問題配對。在過去的幾個月裡，確實發生了很多事情，我們看到消費者環境的起起落落。毫無疑問，這種新鮮感正在發揮作用。

Our merchants have done a phenomenal job chasing into product that is resonating with the consumer and that is selling through quite nicely. What we saw. And I'm going to take you through, I'm going to take into October and then bring you into November and bring into Black Friday just to give you a sense of where we are.

我們的商家在尋找能夠引起消費者共鳴並且銷售良好的產品方面做得非常出色。我們所看到的。我將帶您了解十月，然後帶您進入十一月，帶您進入黑色星期五，只是為了讓您了解我們的情況。

But starting in October, traffic was out there, but conversion was tough. And I think we and anybody else who sells fall product and sell boots really saw that the consumer was not motivated to spend in October like they were looking, but you know, for US Foods represent 40% to 50% of our mix in the fourth quarter for them than that.

但從十月開始，流量就在那裡，但轉換卻很困難。我認為我們和其他銷售秋季產品和銷售靴子的人確實看到消費者並沒有像他們想像的那樣在 10 月份消費，但你知道，美國食品在第四季度占我們產品組合的 40% 到 50%對他們來說比這更重要。

That's what made for October. We saw a market change in November where with colder weather, there was a lot of good positive traffic in all of our retail concepts over by expanding into malls and tightening for shopping.

這就是十月的成果。我們在 11 月看到了市場變化，隨著天氣變冷，我們所有的零售概念都透過擴展到購物中心和收緊購物而帶來了許多良好的積極流量。

But what we also saw is that our brands in particular or really promotional, we were as promotional as we thought we would be over by Friday and really in the third quarter. But we also saw that some of the inventory buildup from center to slow our sales and footwear over the course of the year.

但我們也看到的是，我們的品牌特別是促銷活動，我們的促銷活動正如我們所認為的那樣，會在周五之前結束，實際上是在第三季。但我們也看到，中心地區的一些庫存積壓導致我們的銷售和鞋類產品在這一年中放緩。

That some of our brands to say that they were going to deviate from that pricing and get more promotional now that promotional activity worked well, it drove it drove sales. And so with traffic and some of the progression on the right product, there is a bifurcation in the market here match where the must-have items are flying off at full price, but anything else needs some encouragement in order to in order to move.

我們的一些品牌表示，由於促銷活動效果良好，他們將偏離該定價並獲得更多促銷，這推動了銷售。因此，隨著流量和正確產品的一些進展，這裡的市場出現了分歧，必備品以全價飛走，但其他任何東西都需要一些鼓勵才能移動。

And so as we have evaluated that and it's a bit of a have and I have not world these days within our brand world, the footwear category is lining up to be a more promotional this holiday. And what you'll see in our guidance is that we that we are driving more sales and is that we are going to be taking a few more markdowns to be able to get there.

因此，正如我們所評估的那樣，這有點像我現在在我們的品牌世界中沒有的世界，鞋類類別將在這個假期進行更多促銷。您將在我們的指導中看到，我們正在推動更多銷售，我們將採取更多降價措施來實現這一目標。

But we are anticipating and what we're hopeful for is that this will be there the final push through the year. It is clear through the inventory overhang in the market. And that would be all We for sure we'll be able that, that we all as an industry will be able to start next airplane.

但我們期待並希望這將是今年的最後衝刺。透過市場的庫存積壓就可以清楚看出。這就是全部，我們確信我們能夠做到這一點，我們整個行業都將能夠啟動下一架飛機。

That's helpful. And then you talked about on some of the some of the strategy, a journey. I think all of them, you said repositioning reassortment kind of got the impression that this is more significant than kind of a typical tweaks that you guys are always making in terms of the assortment, merchandising.

這很有幫助。然後你談到了一些策略、一段旅程。我想你們所有人都說過，重新定位重新分類給人的印像是，這比你們在分類、銷售方面總是做出的典型調整更重要。

Um, can you maybe speak more to that is what exactly are you looking to do in terms of repositioning of assortment there with the aim to that strategy?

嗯，您能否更多地談談您到底希望做什麼來重新定位那裡的品種，以實現該策略？

Yes. So Mitch, we were the destination for where teams go to buy their fashion footwear. And we always have done a great supply as the best items that people are that our teams are looking for and that our customer and they're being very discerning when it comes to retail spend and the choices of what they're spending on.

是的。所以米奇，我們是球隊購買時尚鞋類的目的地。我們總是提供大量的供應，因為我們的團隊正在尋找人們正在尋找的最好的商品，而且我們的客戶和他們在零售支出和他們的支出選擇方面都非常挑剔。

I think that all of the comments, and I don't know that were deviating from our merchandising trends. But what we did see at the beginning of this year is that our consumer had a huge appetite for newness and fashion what we're chasing into and that's why we've chased into for the back part of the year.

我認為所有的評論（我不知道這些評論）都偏離了我們的銷售趨勢。但我們在今年年初確實看到的是，我們的消費者對我們所追求的新穎和時尚有著巨大的興趣，這就是我們在今年下半年追逐的原因。

And that's what is driving our sales. And the improvement were quite pleased at the improvement from where we started at the beginning of the year in journeys to the point we are right now where we're having the best results of the year and a big, big pickup.

這就是推動我們銷售的因素。我們對從年初開始的旅程到現在取得今年最好成績和大幅提升的進步感到非常高興。

So it really is that we're chasing into this newness. We're working with our brands in order to further differentiate our assortment to have more of a must-have product to have more exclusive and add to continue to get in front of the consumer, the destination of choice.

所以我們確實在追求這種新鮮感。我們正在與我們的品牌合作，以進一步差異化我們的產品種類，以提供更多必備產品，擁有更多獨家產品，並繼續吸引消費者，成為他們的首選目的地。

And then Lastly, just in terms of the uptick in promotional activity, I mean you did mention that of boots are a large percentage of your mix in 4Q and that the season got off to a slow start. Looks like the Journeys' inventory is actually a good state.

最後，就促銷活動的增加而言，我的意思是您確實提到靴子在第四季度的產品組合中佔很大比例，並且本賽季開局緩慢。看來征途的庫存狀況其實還不錯。

But in terms of its content from, are you guys and sitting Motional energy are the kind of worked through maybe some excess inventory? There's about a month?

但就其內容而言，你們和坐著的動能是透過一些多餘的庫存來實現的嗎？還有一個月左右吧？

Yes, I would say that we want to make sure that we have enough dry powder niche to be able to move on whatever items that we need to move on for the holiday unfolds. And certainly, you know, I think that they were in the third quarter and certainly over the course of November, we saw good sales and journeys.

是的，我想說的是，我們希望確保我們有足夠的乾粉利基，以便能夠搬運我們在假期期間需要搬運的任何物品。當然，我認為在第三季度，當然在 11 月份，我們看到了良好的銷售和旅程。

And so in spite of some of the lower boot sales, we were selling other products that the consumer was interested in buying. When we'd have these hold spurred simply E&O here. And as much of the rest of the country, we had coal spurts, and it has gotten warm and cold person has gotten warm again.

因此，儘管靴子銷量有所下降，我們仍在銷售消費者有興趣購買的其他產品。當我們有這些保留時，只需在這裡 E&O 即可。和全國其他地方一樣，我們也發生了煤炭噴發，天氣變得溫暖，寒冷的人們又變得溫暖了。

And in those coal spurts, we do see that the sell through of boots and we see a pickup in the US. And so, we are we know that it will be called. We know that consumer, we believe the consumer is going to be out shopping around holiday and I will move the boot inventory that we have, and then we'll take them whatever marks we need to at the end of the season.

在這些煤炭噴發中，我們確實看到靴子的銷售，並且我們看到美國的銷量有所回升。所以，我們知道它將被呼叫。我們知道消費者，我們相信消費者會在假期前後外出購物，我將轉移我們擁有的靴子庫存，然後我們將在季節結束時採取我們需要的任何標記。

Thank you.

謝謝。

[Corey Tarlowe], Jefferies.

[科里·塔洛]，傑弗里斯。

Hi. Thank you for taking our call. I just wanted to see if you could describe the differences between the US and UK consumers. Are there any trends really worth calling out between those two and two? We expect those trends to continue into next year.

你好。感謝您接聽我們的電話。我只是想看看你是否能描述美國和英國消費者之間的差異。這兩者之間有什麼真正值得指出的趨勢嗎？我們預計這些趨勢將持續到明年。

Thank you for your questions.

謝謝您的提問。

And so interestingly, the US market and the UK market have tracked and you know it from an economic point of view. Similarly, in terms of high inflation and they are having to make choices. Our shoe business has had an exceptional year has outperformed the market, has that moved out three places in terms of ranking in overall market share. And so we have been out I'll punching the competition.

有趣的是，美國市場和英國市場已經跟踪，你從經濟角度就知道了。同樣，在高通膨方面，他們也不得不做出選擇。我們的鞋類業務今年表現出色，跑贏了市場，在整體市場份額排名中上升了三位。所以我們已經出局了，我會狠狠地打擊競爭對手。

Most recently and so I think if you have process that the consumer wants and if you have product that resonates with the consumer than among other items that they're spending on, you can motivate that that purchase.

最近，我認為，如果你有消費者想要的流程，並且如果你的產品比他們購買的其他商品更能引起消費者的共鳴，你就可以激勵他們購買。

What we've seen most recently is that across the board there was a slowdown with a start of the fall selling season, and we have seen a turnaround there in the US with a really robust Black Friday sales. Our store traffic was up stores where the great highlight of the Black Friday weekend.

我們最近看到的是，隨著秋季銷售季節的開始，整體銷售放緩，並且我們看到美國出現了好轉，黑色星期五的銷售非常強勁。我們的商店客流量增加了，這是黑色星期五週末的一大亮點。

But all together, this consumer in the United States was out to shop. We had a very strong Black Friday weekend in the UK last year. Right now, we think that the UK consumer is waiting holding out. Typically the UK market goes on sale before Christmas.

但總而言之，這位美國消費者是出去購物的。去年我們在英國度過了一個非常精彩的黑色星期五週末。目前，我們認為英國消費者正在等待。英國市場通常在聖誕節前開始銷售。

We think there may be some holdback in the UK market and that's the difference right now is that the US showed a lot the pickup in traffic over the Black Friday weekend and the UK, we think that there will be the season has to unfold further. Altogether, the way that consumers acting is that they'll pay up for the must-have product. But other than that, they really they are seeking the value that I talked about.

我們認為英國市場可能會出現一些阻礙，而現在的不同之處在於，美國在黑色星期五週末的客流量顯著回升，而英國，我們認為這個季節必須進一步展開。總而言之，消費者的行為方式是他們願意為必備產品付費。但除此之外，他們確實正在尋求我所說的價值。

Thank you and a quick follow-up. Are there any supply chain or material costs that are headwinds at the moment? And if there are any that we'll turn to tailwinds like here. Thank you.

謝謝您並快速跟進。目前是否有任何供應鏈或材料成本的不利因素？如果有的話，我們會像這裡一樣轉向順風。謝謝。

Yeah, I would say at this point, we feel really good about the supply chain in the costs that we're going to expect going forward for this year. We're getting a lot of relief fund freight logistics cost in our in our branded business. And that was the big headwind last year as well as air freight product.

是的，我想說，在這一點上，我們對今年預計的供應鏈成本感到非常滿意。我們在我們的品牌業務中獲得了大量的救濟基金貨運物流成本。這是去年航空貨運產品面臨的巨大阻力。

And so we're starting to see improvements in our gross margins in our branded business as a result of the reduced freight logistics cost and really not a headwind at all as all the efforts we're making in our branded business from a sourcing perspective and a design and development, perspective and a cost estimating perspective, we expect good gross margin expansion going forward from that perspective.

因此，由於貨運物流成本降低，我們開始看到我們品牌業務的毛利率有所改善，而且實際上根本不是一個逆風，因為我們從採購的角度在品牌業務中所做的所有努力和從設計和開發、角度和成本估算的角度來看，我們預期從這個角度來看，毛利率將會出現良好的成長。

And then on the retail business that we are, we in our in our we really think we're in a good position with all our branded partners. And we don't see any headwinds there are going forward.

然後就我們的零售業務而言，我們確實認為我們與所有品牌合作夥伴處於有利地位。我們認為未來不會有任何阻力。

The cost pressure that we've been facing has been around wages. And so a lot of the initiatives that we are talking about is to be able to make on our use of labor, more efficient and so in our distribution center that help to bend the curve on just overall wage increases.

我們一直面臨的成本壓力與薪資有關。因此，我們正在討論的許多舉措都是為了能夠提高我們的配送中心對勞動力的使用效率，有助於扭轉整體薪資成長的曲線。

In our stores we have spent a lot of time on store time studies where we are looking to get much more efficient within our stores, take out the nonproductive out ores and shift the labor into selling. And we're seeing that pay some dividends.

在我們的商店中，我們花了很多時間進行商店時間研究，希望提高商店的效率，剔除非生產性的礦石，並將勞動力轉移到銷售上。我們看到這帶來了一些紅利。

They've started on that work in Journeys and ensure we are doubling down on our efforts there. But that's where we're seeing a lot of the of the overall cost pressure for this year that with a with the work we're doing, we anticipate that we will we'll make progress in this area for the coming year.

他們已經在《旅程》中開始了這項工作，並確保我們加倍努力。但這就是我們今年看到的整體成本壓力很大的地方，透過我們正在做的工作，我們預計來年我們將在這一領域取得進展。

Thank you and best of luck. I mean what's the quarter?

謝謝你，好運。我的意思是第幾季？

Thank you.

謝謝。

Thank you. At this time, I'll turn the floor back to Mimi for any closing remarks.

謝謝。此時，我將把發言權轉回 Mimi 進行結束語。

Thank you for joining us today and wish everybody the best of the holiday season and look forward to talking with you in the new year.

感謝您今天加入我們，祝大家假期愉快，並期待在新的一年與您交談。

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。