Hooker Furnishings Corp (HOFT) 2023 Q3 法說會逐字稿

Greetings, ladies and gentlemen, and welcome to the Hooker Furnishings quarterly investor conference call, reporting its operating results for its fiscal 2023 third quarter. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Paul Huckfeldt, Senior Vice President and Chief Financial Officer for Hooker Furnishings Corporation.

女士們先生們，大家好，歡迎參加 Hooker Furnishings 季度投資者電話會議，報告其 2023 財年第三季度的經營業績。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹主持人，Hooker Furnishings Corporation 的高級副總裁兼首席財務官 Paul Huckfeldt。

Thank you, Michelle. Good morning, and welcome to our quarterly conference call to review earnings financial results for the fiscal 2023 third quarter, which began August 1, 2022, and ended on October 30, 2022.

謝謝你，米歇爾。早上好，歡迎參加我們的季度電話會議，回顧從 2022 年 8 月 1 日開始到 2022 年 10 月 30 日結束的 2023 財年第三季度的收益財務結果。

Joining me this morning is Jeremy Hoff, our Chief Executive Officer. We appreciate your participation today. During our call, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of factors that could cause our actual results to differ materially from management's expectations is contained in our press release and SEC filing announcing our fiscal 2023 third quarter results. Any forward-looking statements speak only as of today, and we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after today's call.

今天早上加入我的是我們的首席執行官傑里米·霍夫 (Jeremy Hoff)。感謝您今天的參與。在我們的電話會議期間，我們可能會做出前瞻性陳述，這些陳述受到風險和不確定性的影響。在我們宣布 2023 財年第三季度業績的新聞稿和 SEC 文件中，討論了可能導致我們的實際業績與管理層預期存在重大差異的因素。任何前瞻性陳述僅在今天發表，我們沒有義務更新或修改任何前瞻性陳述以反映今天電話會議後的事件或情況。

This morning, we reported consolidated net sales of $152 million, an increase of $18 million or 13.6% compared to last year's third quarter. The increase was attributable to the addition of Sunset West results as well as sales increases across all the other domestic upholstery division and higher sales at Home Meridian compared to last year when container direct business was severely impacted by the temporary COVID-related lockdowns in Vietnam and Malaysia. The higher consolidated revenue was slightly offset by a $1.3 million or 2.4% sales decrease at Hooker Branded when comparing to record sales in the third quarter of last year.

今天上午，我們報告了 1.52 億美元的合併淨銷售額，與去年第三季度相比增加了 1800 萬美元或 13.6%。這一增長歸因於 Sunset West 業績的增加以及所有其他國內裝飾部門的銷售額增長以及 Home Meridian 的銷售額高於去年，當時集裝箱直接業務受到越南與 COVID 相關的臨時封鎖的嚴重影響，以及馬來西亞。與去年第三季度的創紀錄銷售額相比，Hooker Branded 銷售額下降 130 萬美元或 2.4%，略微抵消了較高的綜合收入。

The company reported net income of $4.8 million or $0.42 per diluted share compared to a net loss of $1.2 million or $0.10 per diluted share a year ago. For the fiscal 2023 9-month period, consolidated net sales decreased by $7 million or 1.5% compared to last year's same period due to decreased net sales in the Home Meridian and Hooker Branded segment, partially offset by higher sales in the Domestic Upholstery segment and in our H Contract business.

該公司報告的淨收入為 480 萬美元或每股攤薄收益 0.42 美元，而一年前的淨虧損為 120 萬美元或每股攤薄收益 0.10 美元。在 2023 財年的 9 個月期間，合併淨銷售額比去年同期減少 700 萬美元或 1.5%，原因是 Home Meridian 和 Hooker Branded 部門的淨銷售額下降，部分被 Domestic Upholstery 部門的銷售額增加和在我們的 H 合同業務中。

Hooker Branded sales volume decreased due to inventory on availability, primarily in the first quarter of this year. Home Meridian sales decreased was attributable to the absence of sales from the unprofitable Clubs channel, which we exited at the end of last year as well as lower sales in the e-commerce channel and lower sales with some retailers who are delaying shipments to help rationalize the [new port orders.] We reported net income of $13.6 million or $1.14 per diluted share for the 9-month period compared to $15.7 million and $1.30 in the prior period. Now I'll turn the call over to Jeremy to comment on our 2023 third quarter results.

Hooker Branded 的銷量因庫存不足而下降，主要是在今年第一季度。 Home Meridian 銷售額下降的原因是我們去年年底退出的無利可圖的 Clubs 渠道沒有銷售，電子商務渠道的銷售額下降以及一些零售商的銷售額下降，這些零售商延遲發貨以幫助合理化[新港口訂單]。我們報告 9 個月期間的淨收入為 1360 萬美元或每股攤薄收益 1.14 美元，而上一期間為 1570 萬美元和 1.30 美元。現在我將電話轉給傑里米，讓他對我們 2023 年第三季度的業績發表評論。

Thank you, Paul, and good morning, everyone. Despite macroeconomic uncertainties and a challenging retail inventory environment, we were grateful that many of the obstacles we faced last year were behind us, and we were able to report revenue and earnings, which both exceeded the prior year third quarter. Steady order backlog fulfillment, full production capacity, healthier inventory levels and operational improvements fueled these gains which we expect to build and improve upon next quarter.

謝謝你，保羅，大家早上好。儘管存在宏觀經濟不確定性和充滿挑戰的零售庫存環境，但我們很高興去年面臨的許多障礙已經過去，我們能夠報告收入和收益，均超過去年第三季度。穩定的訂單積壓履行、滿負荷生產能力、更健康的庫存水平和運營改進推動了這些收益，我們預計將在下個季度建立和改進這些收益。

Year-over-year profitability gains for the quarter were driven by sales growth and successful mitigation of supply chain bottlenecks that have impacted us for over the last 2 years. Improving our operational cost and exiting unprofitable businesses at HMI is beginning to show up in our margins and will continue to help improve profitability.

本季度的同比盈利增長受到銷售增長和成功緩解過去兩年影響我們的供應鏈瓶頸的推動。改善我們的運營成本和退出 HMI 的無利可圖業務開始體現在我們的利潤中，並將繼續幫助提高盈利能力。

However, economic indicators are mixed and there are potential headwinds, including rising interest rates, declining home sales and consumer confidence. On a positive note, the recent fall High Point market was the best attended market since the pandemic and gave us a real momentum boost.

然而，經濟指標喜憂參半，並且存在潛在的不利因素，包括利率上升、房屋銷售下降和消費者信心。從積極的方面來看，最近下跌的高點市場是自大流行以來參與人數最多的市場，給了我們真正的動力。

The market attendance exceeded October 2019 by 12%. We found retailers to be upbeat and receptive to new products they can now expect to receive within several months of order for the first time in a couple of years. HMI debuted a remodeled 100,000 square foot showroom including a 10,000 square foot area showcasing the new portfolio program featuring a breadth of in-stock styles of bedroom, dining, occasional and upholstery across HMI brands, which was very well received. Portfolio's launch was a successful first step in expanding and diversifying HMI's customer base to include interior designers and a greater number of independent furniture retailers.

市場出席人數比 2019 年 10 月增加了 12%。我們發現零售商對新產品持樂觀態度並樂於接受，他們現在可以期望在幾個月內收到訂單，這是幾年來的第一次。 HMI 首次展示了經過改建的 100,000 平方英尺的陳列室，其中包括一個 10,000 平方英尺的區域，展示了新的產品組合計劃，其中包括 HMI 品牌的臥室、餐廳、休閒和室內裝潢等多種庫存風格，受到了廣泛好評。 Portfolio 的推出是 HMI 客戶群擴大和多樣化的成功的第一步，包括室內設計師和更多的獨立家具零售商。

At Hooker Casegoods, we debuted the Charleston collection. The updated traditional styling and finishes were met with enthusiasm from retailers who believe there's a void for timeless designs in the marketplace, a furnishing style that's sought after by a significant set of younger consumers in their prime furniture buying years.

在 Hooker Casegoods，我們推出了 Charleston 系列。更新後的傳統風格和飾面受到了零售商的熱情，他們認為市場上沒有永恆的設計，這種家具風格在購買家具的黃金時期受到大量年輕消費者的追捧。

This collection will be shipped before the next High Point market in spring 2023 when we look forward to the grand opening of our new Hooker legacy showroom encompassing an entire floor of the Show Place building in High Point. Now I want to turn the discussion over to Paul, who will discuss highlights in each of our segments.

該系列將在 2023 年春季的下一個 High Point 市場之前發貨，屆時我們期待著我們新的 Hooker 傳統陳列室的盛大開幕，該陳列室涵蓋了 High Point 的 Show Place 大樓的整個樓層。現在我想將討論轉交給 Paul，他將討論我們每個部分的亮點。

Thanks, Jeremy. At Hooker Branded, net sales decreased by $1.3 million or 2.4% compared to the same period last year. The lower sales were driven by temporary inventory mix issues, some vendor factory shipments were received in our warehouses as incomplete collections with missing items and retailers delayed receipt of orders until collections and groups get shipped completely. This issue is being resolved, and we're shipping more of our backlog now. Our Asian suppliers are improving their lead times and Hooker Branded inventories are now about $44 million higher than they were at the end of last year's third quarter, positioning us well for the holiday selling season.

謝謝，傑里米。 Hooker Branded 的淨銷售額與去年同期相比下降了 130 萬美元或 2.4%。銷售額下降的原因是暫時的庫存組合問題，我們的倉庫收到了一些供應商工廠的貨物，因為收藏品不完整，缺少物品，零售商延遲收到訂單，直到收藏品和組完全發貨。這個問題正在解決，我們現在正在運送更多積壓訂單。我們的亞洲供應商正在改善他們的交貨時間，Hooker Branded 的庫存現在比去年第三季度末高出約 4400 萬美元，這使我們在假期銷售旺季做好了準備。

Gross profit increased by about 100 basis points for the quarter, which partially offset that slight sales decline and higher SG&A expenses, which are up due to higher salary and benefit costs and higher commission rates among other things. Hooker Branded reported $5.2 million in operating income and a 9.5% operating margin for the quarter.

本季度毛利潤增長約 100 個基點，部分抵消了銷售額的小幅下降和 SG&A 費用的增加，這些費用因更高的工資和福利成本以及更高的佣金率等因素而增加。 Hooker Branded 報告本季度營業收入為 520 萬美元，營業利潤率為 9.5%。

Incoming orders in Hooker Branded decreased as compared to the prior year quarter as the market is gradually returning to more typical levels of demand. The quarter end backlog was lower than the prior year-end quarter, but was still about 3x higher than pre-pandemic levels in calendar 2019.

由於市場逐漸恢復到更典型的需求水平，與去年同期相比，Hooker Branded 的新訂單有所減少。季度末積壓訂單低於上一季度，但仍比 2019 日曆年大流行前水平高出約 3 倍。

Moving to Home Meridian. Segment net sales increased by about $4.4 million or 9.4% as compared to the abnormally low volume in the prior year third quarter when container business was severely impacted by the temporary COVID-related factory shutdowns in Vietnam and Malaysia. In addition, the hospitality division reported strong sales as that sector continues to recover from COVID-related downturns. The sales increases were largely offset by the absence of the unprofitable Clubs channel sales and decreased e-commerce sales. The exit from Clubs channel resulted in significant improvement in returns and allowances and gross margin.

移動到 Home Meridian。與去年第三季度異常低的銷量相比，該部門的淨銷售額增加了約 440 萬美元或 9.4%，當時集裝箱業務受到越南和馬來西亞與 COVID 相關的臨時工廠關閉的嚴重影響。此外，酒店部門報告銷售強勁，因為該部門繼續從 COVID 相關的低迷中復蘇。銷售額的增長在很大程度上被無利可圖的俱樂部渠道銷售和電子商務銷售額的減少所抵消。退出俱樂部渠道導致回報和津貼以及毛利率顯著改善。

E-commerce sales decreased mostly due to normalization of post-COVID consumer demand. Gross profit and margin improved significantly due to the absence of excess charge backs from the club channel and order cancellation costs when we exited the ready-to-assemble furniture category last year. However, HMI shipments were lower than expected due to mass merchant retailers with high inventories delaying some shipments.

電子商務銷售額下降的主要原因是 COVID 後消費者需求正常化。去年我們退出現成組裝家具類別時，由於沒有俱樂部渠道的超額退款和訂單取消成本，毛利潤和利潤率顯著提高。然而，HMI 出貨量低於預期，原因是庫存高的大型零售商延遲了部分出貨。

Due to deflated sales from delayed shipments and higher-than-expected transition and labor costs related to our new Georgia distribution center, HMI reported an operating loss of $3.2 million, a $7 million improvement from the operating loss in the prior year quarter. As expected, incoming orders and quarter end backlog decreased significantly due to the absence of Clubs channel orders as well as decreased orders from our retail customers who are delaying orders to rationalize inventories with current demand.

由於發貨延遲導致銷售額下降以及與我們新的佐治亞州配送中心相關的過渡和勞動力成本高於預期，HMI 報告營業虧損 320 萬美元，比去年同期的營業虧損減少 700 萬美元。正如預期的那樣，由於缺少俱樂部渠道訂單以及我們的零售客戶的訂單減少，新訂單和季末積壓顯著減少，這些客戶正在延遲訂單以根據當前需求合理化庫存。

In the Domestic Upholstery segment, we were pleased to report the seventh consecutive quarter of double-digit sales growth. Net sales increased by $14.1 million or 48% compared to the prior year third quarter. The increase was driven by the addition of Sunset West results as well as organic sales growth at each of the domestically produced divisions, Bradington-Young, Sam Moore and Shenandoah, which all delivered double-digit net sales gains for the quarterly and 9-month periods.

在國內裝潢領域，我們很高興地報告連續第七個季度實現兩位數的銷售額增長。與去年第三季度相比，淨銷售額增加了 1410 萬美元或 48%。這一增長是由 Sunset West 業績的增加以及每個國內生產部門 Bradington-Young、Sam Moore 和 Shenandoah 的有機銷售增長推動的，這些部門在本季度和 9 個月內都實現了兩位數的淨銷售增長期間。

Gross profit and margin increased due to the inclusion of Sunset West results, favorable sales variances, better overhead absorption on higher sales volumes and near full operating capacity. These improvements were partially offset by increased raw material costs such as leather, home and upholstery materials. For the third quarter, the segment generated operating income of $3.8 million and reported an operating margin of 8.8%.

由於納入了 Sunset West 的業績、有利的銷售差異、更高的銷量和接近滿負荷的運營能力更好地吸收了間接費用，毛利潤和利潤率有所增加。這些改進部分被皮革、家居和室內裝潢材料等原材料成本的增加所抵消。第三季度，該部門產生了 380 萬美元的營業收入，營業利潤率為 8.8%。

Incoming orders decreased compared to the prior year quarter due to current demand, long lead times and high backlog, but year-to-date orders were about on the same level as calendar 2019. Quarter end backlog was lower than the prior year quarter end and fiscal 2022 year-end when demand was exceptionally strong and production capacity was constrained.

由於當前需求、交貨時間長和積壓量大，新訂單與去年同期相比有所減少，但今年迄今的訂單與 2019 年的日曆水平大致相同。季度末積壓量低於去年同期和2022 財年年底，需求異常強勁，產能受到限制。

Comparing to calendar 2019, backlog was more than 3x higher than pre-pandemic level. Turning now to our cash inventory and debt position. Cash and cash equivalents stood at $6.5 million at the fiscal 2023 quarter end, down $62.9 million from the previous -- from the balance at fiscal 2022 year-end due primarily to $58.9 million increase in inventory as well as almost $10 million of share repurchases. During the fiscal 2023 9-month period, we purchased and retired 598,000 shares of our common stock under the $20 million share repurchase authorization approved by our Board of Directors earlier this year.

與 2019 年日曆相比，積壓比大流行前水平高出 3 倍多。現在轉向我們的現金庫存和債務頭寸。現金和現金等價物在 2023 財年季度末為 650 萬美元，比上一季度減少 6290 萬美元——低於 2022 財年末的餘額，主要原因是庫存增加 5890 萬美元以及近 1000 萬美元的股票回購。在 2023 財年的 9 個月期間，我們根據今年早些時候董事會批准的 2000 萬美元股票回購授權購買並退回了 598,000 股普通股。

Through December 7, we purchased 705,000 shares at a total cost of $11.2 million. And even while spending $11 million on share repurchases to date, we've been generating cash since last quarter. With lead times shortening as much as they have, we're aiming to reduce inventories by $25 million by roughly this time next year, which will further enhance our cash position. To improve liquidity, we've also implemented some target promotions on certain products.

截至 12 月 7 日，我們以 1120 萬美元的總成本購買了 705,000 股股票。即使迄今為止，我們在股票回購上花費了 1100 萬美元，但自上個季度以來我們一直在產生現金。隨著交貨時間的縮短，我們的目標是到明年大約這個時候將庫存減少 2500 萬美元，這將進一步增強我們的現金狀況。為了提高流動性，我們還對某些產品實施了一些目標促銷。

Also related to cash flow, let me take a minute just to discuss our capital allocation priorities. On December 5 2022, our Board of Directors declared a quarterly cash dividend of $0.22 per share, which will be paid on December 30 to shareholders of record on December 16. This 10% increase in the dividend is the seventh consecutive year in which we've been able to increase our annual dividend. We believe it demonstrates our continued confidence in our strategy and business model.

同樣與現金流有關，讓我花一分鐘時間討論一下我們的資本配置優先事項。 2022 年 12 月 5 日，我們的董事會宣布了每股 0.22 美元的季度現金股息，將於 12 月 30 日支付給 12 月 16 日登記在冊的股東。股息增加 10% 是我們連續第七年我們已經能夠增加我們的年度股息。我們相信這表明我們對我們的戰略和商業模式充滿信心。

We believe our relatively stable balance sheet and variable cost business model will allow us to adapt the economic downturn that may be on the horizon. Other capital allocation priorities include rebuilding our cash reserves, fulfilling the remainder of our share repurchase authorization and capital investments in our soon-to-be implemented ERP upgrade and other capital expenditures to improve our competitive position, such as outfitting the new Hooker legacy brand showroom for its opening in April 2023. Now I'll turn the discussion back to Jeremy for his outlook.

我們相信我們相對穩定的資產負債表和可變成本業務模式將使我們能夠適應可能即將到來的經濟衰退。其他資本分配優先事項包括重建我們的現金儲備、完成我們剩餘的股份回購授權和對我們即將實施的 ERP 升級的資本投資以及其他資本支出以提高我們的競爭地位，例如裝備新的 Hooker 傳統品牌陳列室將於 2023 年 4 月開業。現在我將討論轉回 Jeremy 的展望。

Thank you, Paul. Current economic indicators are mixed, and we are closely monitoring potential disruptors, including rising interest rates, consumer confidence in a slowing housing market. At the same time, we see reasons for optimism as the U.S. enjoys healthy employment levels, rising household incomes and continuing strength in consumer spending. Our backlogs on the legacy side are still much higher than pre-pandemic levels and our recent entry into outdoor furniture with Sunset West is performing above expectations. We believe the environment in the home furnishings industry is shifting from a reliance on historic demand to a dependence on market share and we believe that many of our initiatives will help us gain market share, including launch of portfolio and our new showroom next spring.

謝謝你，保羅。當前的經濟指標喜憂參半，我們正在密切關注潛在的干擾因素，包括利率上升、消費者對房地產市場放緩的信心。與此同時，我們看到了樂觀的理由，因為美國擁有健康的就業水平、家庭收入增加和消費者支出持續強勁。我們在遺留方面的積壓仍遠高於大流行前的水平，我們最近與 Sunset West 一起進入戶外家具領域的表現超出預期。我們相信家居裝飾行業的環境正在從依賴歷史需求轉變為依賴市場份額，我們相信我們的許多舉措將幫助我們獲得市場份額，包括明年春天推出產品組合和新陳列室。

Strategically, we believe we are well-positioned to capitalize on this change. Despite our relative optimism, we are paying close attention to economic indicators and retail trends to ensure that our inventory planning and cost structure are appropriate to the short to midterm conditions while continuing to invest in our longer-term strategies. Typically, our earnings calls focus on financial highlights.

從戰略上講，我們相信我們已做好充分準備利用這一變化。儘管我們相對樂觀，但我們正在密切關注經濟指標和零售趨勢，以確保我們的庫存計劃和成本結構適合中短期條件，同時繼續投資於我們的長期戰略。通常，我們的財報電話會議側重於財務亮點。

However, we are grateful as an organization to be in a position to support charitable organizations throughout the communities we live and work and where great needs exist. Most recently, we had the opportunity to partner with two key retailers in Florida to send over 1,200 beds and supplies to help us relief efforts for Hurricane Ian. This spirit of giving back is embedded in our culture and has been for almost 100 years. Our employees take this part of our culture seriously and dedicate a significant amount of their own time and resources to many of these efforts. We believe this is a key differentiator for us at the company, which is why I wanted to mention this in our call today.

然而，作為一個組織，我們很高興能夠在我們生活和工作的整個社區以及存在巨大需求的地方支持慈善組織。最近，我們有機會與佛羅里達州的兩家主要零售商合作，發送了 1,200 多張床位和物資，以幫助我們為颶風伊恩開展救災工作。這種回饋精神植根於我們的文化中，已經存在了將近 100 年。我們的員工認真對待我們文化的這一部分，並為其中的許多工作投入了大量的時間和資源。我們相信這是我們公司的一個關鍵差異化因素，這就是為什麼我想在今天的電話會議中提到這一點。

This ends the formal part of our discussion. And at this time, I will turn the call back over to our operator, Michelle, for questions.

我們討論的正式部分到此結束。此時，我會將電話轉回給我們的接線員 Michelle，請其提問。

(Operator Instructions) Our first question comes from Andrew (sic) [Anthony] Lebiedzinski with Sidoti.

（操作員說明）我們的第一個問題來自 Andrew（原文如此）[Anthony] Lebiedzinski 和 Sidoti。

Yes. And I'm actually Anthony Lebiedzinski, not Andrew. So First, on Hooker Branded, just wanted to get a better sense as far as the inventory mix issues. Any way that you guys could quantify what the impact was? And I know you said you're shipping better in 4Q. So do you expect to get most of that back in 4Q, whatever you lost because of these mix issues? Or do you think that will spill over into the first quarter of next year?

是的。我實際上是 Anthony Lebiedzinski，不是 Andrew。所以首先，在 Hooker Branded 上，只是想更好地了解庫存組合問題。你們有什麼辦法可以量化影響是什麼？我知道你說你在第四季度出貨更好。那麼，無論您因這些混合問題而損失了什麼，您是否希望在第四季度收回大部分資金？還是您認為這會蔓延到明年第一季度？

I think we'll get a lot of it back. We're shipping considerably better than we were through most of the quarter.

我想我們會收回很多。我們的出貨量比本季度的大部分時間要好得多。

Just quantifying, I think it's a little tough to do. Although I know that, for example, the category of furniture on hold due to waiting on other orders of ship, I believe, was somewhere in the $5 million to $7 million neighborhood. So that's kind of -- that would probably be one number we could somewhat quantify. And yes, we are -- we've actually been in -- it's a weekly process at this point. We feel like we've managed through it, and we feel like we will get that back in the fourth quarter.

只是量化，我覺得做起來有點難。雖然我知道，例如，由於等待其他船舶訂單而擱置的家具類別，我相信，在 500 萬到 700 萬美元附近。所以這有點——這可能是一個我們可以量化的數字。是的，我們是——我們實際上已經進入了——此時是每週一次的流程。我們覺得我們已經度過難關，而且我們覺得我們會在第四季度找回它。

Got it. Okay. And then I know you guys talked about the backlog being up overall versus pre-pandemic. Any way you guys could quantify what the consolidated backlog was at the end of the quarter? And how does that compare to the third quarter from calendar '19?

知道了。好的。然後我知道你們談到了與大流行前相比總體積壓情況。你們有什麼辦法可以量化本季度末的綜合積壓情況嗎？與日曆'19 的第三季度相比如何？

Consolidated backlog was $137 million?

合併積壓訂單為 1.37 億美元？

Yes.

是的。

$137 million now and $126 million in '19.

現在是 1.37 億美元，19 年是 1.26 億美元。

Okay. Got it. And then...

好的。知道了。然後...

And that obviously consolidated the legacy side gets much more pronounced as far as how much larger it is.

顯然，就其規模而言，遺留方面的整合變得更加明顯。

Right. I mean brand is 35% versus 11, right?

正確的。我的意思是品牌是 35% 對 11，對嗎？

Okay. All right. So that's a meaningful difference. Okay. All right. And then for Home Meridian, you said that some customers are delaying shipments, obviously, where we all know that there's a lot of inventory out there in the retail channel. So I mean, do you think these are mostly firm orders or could some of these get canceled? And I guess, what's your view as to when do you think that inventory levels at the retail partners that you're dealing with? I mean when do you think those will kind of be more normal?

好的。好的。所以這是一個有意義的差異。好的。好的。然後對於 Home Meridian，您說一些客戶正在延遲發貨，顯然，我們都知道零售渠道中有大量庫存。所以我的意思是，你認為這些主要是確認訂單還是其中一些會被取消？而且我想，您對您所處理的零售合作夥伴的庫存水平何時有何看法？我的意思是你認為這些什麼時候會更正常？

First of all, the first part of the question, we do believe we -- those are firm orders. We feel like we went through the process of rationalizing our backlog with all of our major retailers and what we have left is solid. So that's how we feel on that question. Secondly, a lot of that is starting -- because there is a fairly decent retail environment going on out there, you just can't -- you can't feel it on the order side because of what's going on with inventories, but we are hearing that the inventories are starting to correct themselves to the level that it's going to finally break through. We don't really know, but we feel like it's definitely getting better kind of on a weekly basis.

首先，問題的第一部分，我們確實相信我們 - 這些是確定的訂單。我們覺得我們已經完成了與所有主要零售商的積壓合理化的過程，我們剩下的是可靠的。這就是我們對這個問題的看法。其次，很多事情正在開始——因為那裡有一個相當不錯的零售環境，你只是不能——你不能在訂單方面感受到它，因為庫存正在發生，但我們聽說庫存開始自行修正到最終將要突破的水平。我們真的不知道，但我們覺得它每週都會變得更好。

That's good to hear. And then as far as the distribution center in Georgia, I know you talked about some labor costs and some inefficiencies there. I mean when would you expect that facility to be operational as far as -- just the -- from an efficiency standpoint, when should that be just as fully efficient to your standards?

聽起來還不錯。然後就佐治亞州的配送中心而言，我知道你談到了那裡的一些勞動力成本和一些低效率問題。我的意思是，從效率的角度來看，您希望該設施何時投入運營，什麼時候應該完全符合您的標準？

We feel like we'll make significant steps at the end of and into the second quarter. And I think we'll make more significant steps actually into the third quarter, too, because as we rationalize our inventory more and more on that side of the business, we're going to be able to reduce our costs pretty significantly.

我們覺得我們將在第二季度末和進入第二季度時邁出重要的一步。而且我認為我們實際上也會在第三季度採取更重要的步驟，因為隨著我們在業務的這一方面越來越合理化我們的庫存，我們將能夠顯著降低成本。

We've already seen some improvement there. We're not incurring a lot of excess freight charges for goods that haven't been unloaded correct on time and stuff like that. So we're starting to see that progress. And we just need continued efficiency.

我們已經看到了一些改進。對於沒有按時正確卸載的貨物，我們不會產生很多超額運費。所以我們開始看到這種進步。我們只需要持續的效率。

Got it. Okay. Okay. And then a couple of more questions, if I could. So as far as on the cost side, so ocean freight costs have sort of normalized. What -- as far as the other costs across the business, what are you seeing there, whether it's labor or domestic transportation. Can you just talk about what you're seeing there?

知道了。好的。好的。如果可以的話，還有幾個問題。就成本方面而言，海運成本已經正常化。什麼——就整個企業的其他成本而言，你在那裡看到了什麼，無論是勞動力還是國內運輸。你能談談你在那裡看到的嗎？

I think the environment now is what I would call much more stable before you were getting daily increases, whether it be foam, whether it be plywood, whether it be whatever you're talking about and now there's a much more stable environment. And to your point, obviously, the freight, the ocean freight, particularly is coming way down. Now as we've said I think before, it's difficult to quickly take advantage of that due to the fact we have the contracts in place, and we've renegotiated a lot of our contracts, but that's a continuous push from our side to realize the benefits of that lower ocean freight on top of the fact that everything you shipped into your warehouse still had a lot of the higher cost.

我認為現在的環境在你每天增加之前我會稱之為更加穩定，無論是泡沫，膠合板，無論你在說什麼，現在都有一個更加穩定的環境。就你的觀點而言，顯然，運費，尤其是海運費正在下降。正如我們之前所說，我認為很難快速利用這一點，因為我們已經簽訂了合同，而且我們已經重新談判了很多合同，但這是我們不斷推動實現的降低海運費的好處是，你運到倉庫的所有東西仍然有很多更高的成本。

Okay. Got it. Okay. And then as far as your ability to gain market share, so you talked about benefiting from portfolio. You're moving to a new showroom next year in High Point. What are some of the other things that you think will enable you to gain market share? And also one of your competitors, Lane Furniture just abruptly shut down. Just wondering if you think that could be an opportunity for you to also gain share from that?

好的。知道了。好的。然後就您獲得市場份額的能力而言，您談到了從投資組合中獲益。明年您將搬到 High Point 的新陳列室。您認為還有哪些其他因素可以讓您獲得市場份額？還有您的競爭對手之一，Lane Furniture 突然倒閉了。只是想知道您是否認為這可能是您也從中獲得份額的機會？

I'm going to start with the last part of that. And absolutely, that category, there's definitely a hole in the marketplace for what they were doing. And so yes, I think once there's a lot of product out there from them exiting overseas and factories and whatnot, that will be interesting getting through a little bit of a bottleneck in that what they have going on over there. But after that, I believe there is an opportunity. As far as where we think we're going to really take advantage of our growth opportunities since that Sunset West is one big part of that.

我將從最後一部分開始。絕對，那個類別，他們正在做的事情在市場上肯定存在漏洞。所以是的，我認為一旦他們有很多產品離開海外和工廠等等，克服他們在那裡發生的事情的一點瓶頸將會很有趣。但在那之後，我相信會有機會。至於我們認為我們將真正利用我們的增長機會的地方，因為 Sunset West 是其中的重要組成部分。

We bought the -- we acquired that company because we see this huge opportunity to put our operational scale on their business and be able to drive that east of the Mississippi, they were pretty West Coast centric. So we've been able to already expand that throughout the country. And also with Savannah, they'll have a distribution model that's freight friendly, if you will, on that part of the country as well. So there's a lot of opportunity in the outdoor category.

我們買了 - 我們收購了那家公司，因為我們看到了這個巨大的機會，可以將我們的運營規模用於他們的業務，並能夠推動密西西比河以東，他們以西海岸為中心。所以我們已經能夠在全國范圍內擴展它。而且對於 Savannah，如果您願意的話，他們也將在該國的那個地區擁有一個貨運友好的分銷模式。因此，戶外類別有很多機會。

Portfolio, it's going to take time, but we already had a really good high point market that we believe is going to turn into some pretty significant revenue on the HMI side in diversifying that customer base as well. Moving into Show place, usually you say, we are just moving into another showroom, but we're moving into a showroom that's going to give us a significant multiplier of audience that we haven't had before.

投資組合，這需要時間，但我們已經擁有一個非常好的高點市場，我們相信在使客戶群多樣化的過程中，這也會在 HMI 方面轉化為相當可觀的收入。搬進展廳，通常你會說，我們只是搬進另一個展廳，但我們搬進的展廳會給我們帶來前所未有的觀眾數量。

It's easy to get in the mindset that, well, we're a fairly large furniture company, and all these customers know who we are. But being on the tenth floor in commerce where we were did not enable us to -- our visibility just wasn't where we wanted it to be. This is a real opportunity for us to really show a whole new audience who we are, which is a great opportunity, and we believe it's a great revenue growth opportunity.

人們很容易認為，好吧，我們是一家相當大的家具公司，所有這些客戶都知道我們是誰。但是，在我們所在的商業區的第十層並沒有使我們能夠——我們的知名度不是我們想要的。這是一個真正的機會，讓我們真正向全新的觀眾展示我們是誰，這是一個很好的機會，我們相信這是一個很好的收入增長機會。

And lastly, speed, we're working on the time we get an order to how fast we can ship it and being in stock and all the things that matter as far as getting turns, and we believe that's going to have a significant impact to our revenues as well.

最後，速度，我們正在研究我們收到訂單的時間、我們可以多快發貨、有庫存以及所有與輪流有關的重要事情，我們相信這將對我們的收入也是如此。

That's great to hear. And best of luck.

聽到這個消息我很高興。祝你好運。

(Operator Instructions) There are no further questions. I'd like to turn the call back over to Jeremy Hoch for any closing remarks.

（操作員說明）沒有進一步的問題。我想將電話轉回 Jeremy Hoch 以聽取任何結束語。

I would like to thank everyone on the call for their interest in Hooker furnishings. We look forward to sharing our fiscal '23 full year results in April next year. I hope everyone has a wonderful holiday season. Take care.

我要感謝電話中的每個人對 Hooker 家具的興趣。我們期待在明年 4 月分享我們的 23 財年全年業績。我希望每個人都有一個美好的假期。小心。

This concludes the program. You may now disconnect. Everyone, have a great day.

程序到此結束。您現在可以斷開連接。大家，祝你有美好的一天。