諾德斯特龍百貨 (JWN) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Nordstrom First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 Nordstrom 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

At this time, I'd like to turn the call over to Sara Penner, Manager of Investor Relations for Nordstrom. You may now begin.

在這個時候，我想把電話轉給 Nordstrom 投資者關係經理 Sara Penner。你現在可以開始了。

Good afternoon, and thank you for joining us. Before we begin, I want to mention that we'll be referring to slides, which can be viewed in the Investor Relations section on nordstrom.com. Our discussion may include forward-looking statements, so please refer to the slide with our safe harbor language. As a reminder, we are here today to discuss our business and first quarter performance, and we will not be taking questions on other matters.

下午好，感謝您加入我們。在我們開始之前，我想提一下，我們將參考幻燈片，可以在 nordstrom.com 的投資者關係部分查看。我們的討論可能包括前瞻性陳述，因此請使用我們的安全港語言參考幻燈片。提醒一下，我們今天來這裡是為了討論我們的業務和第一季度的業績，我們不會回答其他問題。

Participating in today's call are Erik Nordstrom, Chief Executive Officer; Pete Nordstrom, President and Chief Brand Officer; and Michael Maher, Chief Accounting Officer, who will provide a business update and discuss the company's first quarter performance.

參加今天電話會議的有首席執行官 Erik Nordstrom； Pete Nordstrom，總裁兼首席品牌官；和首席會計官 Michael Maher，他將提供業務更新並討論公司第一季度的業績。

And now I'll turn the call over to Erik.

現在我會把電話轉給埃里克。

Thank you, Sara. Good afternoon, everyone. For the first quarter, we delivered net sales of $3.1 billion, a loss per share of $1.27 and adjusted earnings per share of $0.07. Adjusted earnings were higher than the first quarter of last year despite lower sales, reflecting the progress we are making against the priorities we laid out at the beginning of the year: improving Nordstrom Rack performance, increasing inventory productivity, and optimizing our supply chain.

謝謝你，薩拉。大家下午好。第一季度，我們的淨銷售額為 31 億美元，每股虧損 1.27 美元，調整後每股收益為 0.07 美元。儘管銷售額下降，但調整後的收益仍高於去年第一季度，反映出我們在年初制定的優先事項方面取得了進展：提高 Nordstrom Rack 績效、提高庫存生產率和優化我們的供應鏈。

As we've seen since June of last year, customer demand continued to be pressured given the current macroeconomic backdrop, which impacted our top line results across both banners. By comparison, the first quarter of 2022 benefited from a strong pent-up demand for a return to occasions as the pandemic receded. As a result, our year-over-year sales comparisons for Q1 were difficult, but those comparisons get progressively easier as we proceed through the year.

正如我們自去年 6 月以來所看到的那樣，鑑於當前的宏觀經濟背景，客戶需求繼續受到壓力，這影響了我們在兩個方面的最高業績。相比之下，2022 年第一季度受益於隨著大流行消退而被壓抑的對恢復活動的強烈需求。因此，我們很難對第一季度的同比銷售額進行比較，但隨著這一年的進行，這些比較會變得越來越容易。

Given the uncertain macro environment, we remain focused on executing with agility. Our 3 key priorities position us for improved profitability in 2023 and a return to long-term profitable growth. I'd now like to talk about our progress against those priorities during the first quarter.

鑑於不確定的宏觀環境，我們仍然專注於敏捷執行。我們的 3 個關鍵優先事項使我們能夠在 2023 年提高盈利能力並恢復長期盈利增長。我現在想談談我們在第一季度針對這些優先事項取得的進展。

Our first priority is to improve the performance of Nordstrom Rack. We're pleased with the progress our teams are making across multiple fronts. Consistent with our customer promise to deliver great brands at great prices, we've increased the penetration of our top-performing strategic brands. As strategic brand penetration increases, we're seeing Rack sales trends improve. April was our best month of the quarter, and we have continued to see trends improve in May.

我們的首要任務是提高 Nordstrom Rack 的性能。我們對我們的團隊在多個方面取得的進展感到高興。與我們以優惠價格提供優質品牌的客戶承諾一致，我們提高了我們表現最好的戰略品牌的滲透率。隨著戰略品牌滲透率的提高，我們看到 Rack 銷售趨勢有所改善。 4 月是我們本季度最好的月份，我們繼續看到 5 月的趨勢有所改善。

We also continue to expand our reach and convenience for customers by opening 2 new stores during the quarter, which, together with the 2 stores we opened last year, have performed well so far, with sales productivity exceeding the fleet average. Rack stores are a great investment with returns that exceed our cost of capital and a short payback period. They also represent the largest source of new customers for Nordstrom. We are excited to roll out to more markets as we expand our Rack footprint. We opened 6 more stores in May, and plan to open 13 additional new stores later this year. With an improved assortment and more new stores, we expect Rack performance to sequentially improve throughout 2023.

我們還在本季度開設了 2 家新店，繼續擴大我們的覆蓋範圍並為客戶提供便利，這與我們去年開設的 2 家店一起，到目前為止表現良好，銷售效率超過了車隊平均水平。貨架商店是一項巨大的投資，回報超過我們的資本成本，而且回收期短。他們也是 Nordstrom 最大的新客戶來源。隨著我們擴大機架足跡，我們很高興能夠推廣到更多市場。我們在 5 月又開了 6 家店，併計劃在今年晚些時候再開 13 家新店。隨著品種的改進和新店的增加，我們預計貨架的性能將在整個 2023 年逐步提高。

Moving to our second priority of increasing inventory productivity, we are managing with leaner and more current inventories, improved sell-through and faster churn across most of our categories, resulting in a 110-basis-point increase in our gross profit margin over the first quarter of last year. Overall inventory levels were 8% lower than last year, with non-designer inventory down 11%. Pete will talk more about the performance of our designer business and the actions we're taking to rightsize our designer inventory.

轉向我們提高庫存生產率的第二個優先事項，我們正在管理更精簡和更當前的庫存，提高我們大多數類別的銷售率和更快的周轉率，從而使我們的毛利率比第一個提高 110 個基點去年四分之一。總體庫存水平比去年下降 8%，非設計師庫存下降 11%。皮特將更多地談論我們設計師業務的表現以及我們為調整設計師庫存而採取的行動。

We continue to make significant progress on our third priority, optimizing our supply chain. For the third consecutive quarter, variable supply chain costs fell by over 100 basis points as a rate of sales versus the prior year, helping to mitigate overall SG&A deleverage on lower sales. We are continuing to increase productivity throughout our network, reduce transportation costs and shorten delivery time to customers.

我們繼續在第三個優先事項上取得重大進展，即優化我們的供應鏈。連續第三個季度，可變供應鏈成本與去年同期相比下降了超過 100 個基點，有助於緩解銷售下降帶來的整體 SG&A 去槓桿化。我們將繼續提高整個網絡的生產力，降低運輸成本並縮短向客戶交付的時間。

To illustrate our progress, we made double-digit improvements in productivity and throughput in our distribution and fulfillment centers. In addition, we are delivering better service to our customers through faster delivery, with overall delivery speed up 9% from last year. Supply chain is the largest component of our SG&A expenses, and we believe there is more opportunity to improve our efficiency and drive overall expense leverage as sales improve.

為了說明我們的進步，我們在配送和履行中心的生產力和吞吐量方面取得了兩位數的提高。此外，我們通過更快的交付速度為客戶提供更好的服務，總體交付速度比去年提高了 9%。供應鍊是我們 SG&A 費用的最大組成部分，我們相信隨著銷售的改善，我們有更多機會提高我們的效率並推動整體費用槓桿。

I'm also thrilled we added new leaders to help us advance our strategic priorities. We welcome Cathy Smith as our Chief Financial Officer; and Jason Morris as Chief Technology and Information Officer. They will play a critical role as we continue to advance our Closer to You strategy. Cathy has a long track record as CFO with many well-known brands and brings deep expertise in retail. I look forward to having her join our next earnings call. In addition, we welcomed Atticus Tysen and Eric Sprunk to our Board of Directors this year. Together, they bring a wealth of expertise in retail, including in technology, cybersecurity and operational excellence.

我也很高興我們增加了新的領導者來幫助我們推進我們的戰略重點。我們歡迎 Cathy Smith 擔任我們的首席財務官； Jason Morris 擔任首席技術和信息官。他們將在我們繼續推進 Closer to You 戰略的過程中發揮關鍵作用。 Cathy 曾擔任許多知名品牌的首席財務官，並擁有深厚的零售專業知識。我期待著她加入我們的下一次財報電話會議。此外，我們今年還歡迎 Atticus Tysen 和 Eric Sprunk 加入我們的董事會。他們共同帶來了豐富的零售專業知識，包括技術、網絡安全和卓越運營。

In summary, we are delivering on our priorities to improve profitability against what remains an uncertain macro environment. We believe continued focus and execution will drive incremental improvement over the balance of the year and will position us well to create long-term shareholder value. We look forward to sharing our continued progress in the quarters ahead.

總而言之，我們正在實現我們的優先事項，以在仍然不確定的宏觀環境下提高盈利能力。我們相信，持續的關注和執行將推動今年餘下時間的逐步改善，並將使我們處於創造長期股東價值的有利位置。我們期待在未來幾個季度分享我們的持續進展。

With that, I'll turn it over to Pete.

有了這個，我會把它交給皮特。

Thanks, and good afternoon, everyone. Erik discussed the progress we're making against our key priorities. So I'll focus my remarks on our category performance and our approach to agile inventory management.

謝謝，大家下午好。 Erik 討論了我們在關鍵優先事項方面取得的進展。因此，我將把我的評論集中在我們的品類表現和我們的敏捷庫存管理方法上。

Starting with category performance. Most categories had tough comparisons to last year's strong double-digit increases from pent-up demand coming out of the pandemic. Still, this quarter, both Men's and Women's Active apparel and sneakers performed well. Beauty and Men's Apparel performed better than average, with men's dresswear continuing to be strong.

從品類表現開始。大多數類別與去年因大流行病導致的被壓抑的需求強勁的兩位數增長相比，表現不佳。儘管如此，本季度男女運動服裝和運動鞋表現良好。美容和男裝表現優於平均水平，男裝繼續保持強勁勢頭。

Within Active, customers responded well to our fresh offerings from powerhouse brand partners like Nike, as well as newer brands like Vuori, On and HOKA. Our ability to partner with up-and-coming brands and scale them highlights the important role we play in helping customers discover new and exciting products. Designer was our toughest category, continuing the trend we saw last quarter.

在 Active 中，客戶對我們來自耐克等強大品牌合作夥伴以及 Vuori、On 和 HOKA 等新品牌的新產品反應良好。我們與嶄露頭角的品牌合作並擴大規模的能力凸顯了我們在幫助客戶發現令人興奮的新產品方面發揮的重要作用。設計師是我們最艱難的類別，延續了我們上個季度看到的趨勢。

Moving to inventory management. Our focus on improving inventory productivity helped us deliver more than 100 basis points of gross profit margin improvement in the first quarter.

轉向庫存管理。我們專注於提高庫存生產率，幫助我們在第一季度實現了超過 100 個基點的毛利率改善。

During our Q2 earnings call last August, we talked about our work to rightsize inventory in 4 areas: first, unproductive regular priced merchandise primarily in the Nordstrom banner, which require deeper markdowns to clear through the back half of the year; second, our private brands product, which had soft performance last year; third, lower price point items at Nordstrom Rack, which did not resonate with our customer; and fourth, designer, where trends decelerated after exceptionally strong growth during the pandemic.

在去年 8 月的第二季度財報電話會議上，我們談到了我們在 4 個領域調整庫存規模的工作：首先，主要是 Nordstrom 旗下非生產性正價商品，這需要更大幅度的降價才能在今年下半年清倉；第二，我們的自有品牌產品，去年表現疲軟；第三，Nordstrom Rack 的低價商品，沒有引起我們客戶的共鳴；第四，設計師，在大流行期間異常強勁的增長之後，趨勢減速。

We took additional markdowns in the second half of '22 as we prioritized finishing the year with leaner and healthier inventory levels. In '23, we are managing with conservative plans and targeting faster turns. At the Rack banner, we've increased the penetration of strategic brands, which had strong sell-through during the first quarter and are contributing to our faster inventory turn. At both banners, we're encouraged to see improved performance in our private brands product, which contributed meaningfully to sales in men's dresswear and was also the #1 volume driver at Nordstrom Rack.

我們在 22 年下半年進行了額外的降價，因為我們優先考慮以更精簡和更健康的庫存水平結束這一年。在 23 年，我們採用保守的計劃進行管理，並以更快的速度為目標。在 Rack 橫幅上，我們提高了戰略品牌的滲透率，這些品牌在第一季度銷售強勁，並為我們更快的庫存周轉做出了貢獻。在這兩個橫幅上，我們很高興地看到我們的自有品牌產品的性能有所提高，這對男士正裝的銷售做出了有意義的貢獻，並且也是 Nordstrom Rack 銷量第一的推動因素。

As a result of these efforts, we are now well positioned in 3 of the 4 areas of excess inventory we discussed last year, and we are actively working to address designer.

由於這些努力，我們現在在我們去年討論的 4 個庫存過剩領域中的 3 個領域處於有利地位，我們正在積極努力解決設計師問題。

Designer has a longer buying cycle and takes more time to clear excess product. The category had a strong run up during the pandemic, and we're now seeing demand normalize. We are working to rightsize our designer inventory, which will include incremental markdowns over the balance of this year. The potential impact is already reflected in our financial outlook for the year. It's important to note that designer sales in Q1 remained above pre-pandemic levels. Overall, the category continues to be a strong contributor to our core offering and a key differentiator to our unique breadth of selection.

設計師有更長的購買週期，需要更多的時間來清理多餘的產品。該類別在大流行期間強勁增長，我們現在看到需求正常化。我們正在努力調整我們的設計師庫存，這將包括今年餘下時間的增量降價。潛在影響已經反映在我們今年的財務展望中。值得注意的是，第一季度的設計師銷售額仍高於大流行前的水平。總體而言，該類別仍然是我們核心產品的重要貢獻者，也是我們獨特的選擇範圍的關鍵差異化因素。

In addition to managing our merchandise mix with greater precision across our banners, we are also enhancing our capabilities to manage inventory with higher accuracy at the unit level through investments in RFID and the shift to cost accounting for internal merchandising. We completed the internal shift to cost accounting in Q1 and began to launch RFID. These capabilities will improve our ability to buy, allocate and track merchandise across our network, provide us greater visibility into profitability at the unit level, increase efficiency and reduce shrinkage.

除了在我們的橫幅廣告中更精確地管理我們的商品組合外，我們還通過投資 RFID 和轉向內部銷售的成本核算來增強我們在單位級別更準確地管理庫存的能力。我們在第一季度完成了內部向成本核算的轉變，並開始推出 RFID。這些功能將提高我們在整個網絡中購買、分配和跟踪商品的能力，使我們能夠更好地了解單位級別的盈利能力，提高效率並減少損耗。

Looking forward, we are excited to serve our customers during our upcoming Anniversary Sale. Our event offers a uniquely curated and diverse assortment of new products from our best brands that will inspire customers across all categories and occasions. This year, we are enhancing our Anniversary experience based on customer feedback, providing more ways to participate and delivering the right product while also driving higher profitability. We are focused on engaging and rewarding our best customers through targeted in-store and digital experiences, and our print catalog is backed by popular demand. We have optimized our inventory mix to include more product from the most highly coveted brands, including some exciting new first-time brands. We are excited about our approach to Anniversary, which is highly anticipated by our customers and has an outsized impact on our second quarter and fiscal year results.

展望未來，我們很高興能在即將到來的周年促銷期間為我們的客戶提供服務。我們的活動提供了來自我們最佳品牌的獨特策劃和多樣化的新產品，這些產品將激發所有類別和場合的客戶。今年，我們將根據客戶反饋改善我們的周年紀念體驗，提供更多參與方式和交付合適的產品，同時推動更高的盈利能力。我們專注於通過有針對性的店內和數字體驗來吸引和獎勵我們最好的客戶，我們的印刷目錄得到了大眾需求的支持。我們優化了我們的庫存組合，以包括更多來自最令人垂涎的品牌的產品，包括一些令人興奮的新品牌。我們對我們的周年紀念方式感到興奮，這受到了客戶的高度期待，並對我們的第二季度和財政年度業績產生了巨大影響。

In closing, we're encouraged to see the early results of the disciplined execution of our operational priorities. We're delivering a better customer experience and improving financial outcomes through these ongoing efforts.

最後，我們很高興看到嚴格執行我們的運營優先事項的早期結果。通過這些持續的努力，我們正在提供更好的客戶體驗並改善財務成果。

I'll now turn it back over to Erik to say a few words before Michael discusses our financial results.

在邁克爾討論我們的財務結果之前，我現在將它轉回給埃里克說幾句話。

Before I turn it over to Michael, I would like to thank him, not only for serving as a great partner in his expanded role as interim CFO during this important transition, but also for his dedication to our customers, our employees and our shareholders. Michael, you have made significant contributions to our business over the past 13 years, including guiding many strategic initiatives during and after the pandemic, and you have been an integral part in building an outstanding finance organization. Many of you know Michael, and I know you would agree that not only is he an outstanding finance executive and a tremendous leader, I'll tell you he's an even better person. Thank you for your leadership over the years. We wish you all the best in your next chapter.

在我將其移交給邁克爾之前，我要感謝他，不僅感謝他在這一重要過渡期間作為臨時首席財務官的擴展角色提供了出色的合作夥伴，而且感謝他對我們的客戶、員工和股東的奉獻。邁克爾，在過去的 13 年裡，您為我們的業務做出了重大貢獻，包括在大流行期間和之後指導了許多戰略舉措，並且您在建立卓越的金融組織方面發揮了不可或缺的作用。你們中的許多人都認識邁克爾，而且我知道你們會同意他不僅是一位傑出的財務主管和出色的領導者，而且我會告訴你們他是一個更好的人。感謝您多年來的領導。我們祝你在下一章一切順利。

Thanks, Erik. It's been a privilege to be part of such a great organization. I'll talk now about our first quarter results and then discuss our outlook for the remainder of 2023.

謝謝，埃里克。能成為這樣一個偉大組織的一員是一種榮幸。我現在將談談我們第一季度的業績，然後討論我們對 2023 年剩餘時間的展望。

For the first quarter, we reported a loss per share of $1.27. After excluding the charges from the wind-down of Canadian operations, adjusted earnings per share was $0.07 compared to an adjusted loss per share of $0.06 in the prior year. Net sales as well as gross merchandise value, or GMV, decreased 12% in Q1. Net sales included a negative impact of 175 basis points from the wind-down of Canadian operations. During the quarter, sales trends softened in March, but recovered in April, with the most pronounced improvement at Rack.

第一季度，我們報告每股虧損 1.27 美元。剔除加拿大業務結束後的費用後，調整後每股收益為 0.07 美元，而上一年調整後每股虧損為 0.06 美元。第一季度淨銷售額和商品總價值 (GMV) 下降了 12%。淨銷售額包括加拿大業務結束帶來的 175 個基點的負面影響。在本季度，銷售趨勢在 3 月份有所放緩，但在 4 月份有所回升，其中 Rack 的改善最為明顯。

Nordstrom banner sales decreased 11% and GMV decreased 12% versus last year. The wind-down of Canadian operations had a negative impact on Nordstrom banner net sales of 270 basis points.

Nordstrom 橫幅銷售額與去年相比下降了 11%，GMV 下降了 12%。加拿大業務的結束對 Nordstrom 旗下的淨銷售額產生了 270 個基點的負面影響。

Nordstrom Rack sales decreased 12%, with approximately 600 basis points of this decline attributable to the elimination of store fulfillment of Rack digital orders starting in the third quarter of 2022.

Nordstrom Rack 銷售額下降了 12%，下降幅度約為 600 個基點，原因是從 2022 年第三季度開始取消商店履行 Rack 數字訂單。

Digital sales decreased 17% in the first quarter, including an estimated 800-basis-point negative impact from eliminating store fulfillment of Rack digital orders in the third quarter of 2022 and sunsetting Trunk Club earlier in 2022.

第一季度數字銷售額下降了 17%，其中包括 2022 年第三季度取消商店履行 Rack 數字訂單和 2022 年初關閉 Trunk Club 帶來的估計 800 個基點的負面影響。

Gross profit as a percentage of net sales increased 110 basis points, reflecting our focus on improving inventory productivity. Ending inventory decreased 8% versus last year compared to a 12% decrease in sales. Inventory levels for categories outside of designer are in line with our sales trend. We remain committed to a disciplined approach to inventory management with a goal of improving turns by at least 10% this year.

毛利潤占淨銷售額的百分比增加了 110 個基點，反映出我們專注於提高庫存生產率。期末存貨與去年相比下降了 8%，而銷售額下降了 12%。設計師以外類別的庫存水平與我們的銷售趨勢一致。我們仍然致力於採用嚴格的庫存管理方法，目標是今年將周轉率提高至少 10%。

Total SG&A as a percentage of net sales increased 240 basis points in the first quarter. Half of the increase was due to the comparison to one-time items in the first quarter of last year, with the remainder driven by deleverage from lower sales. Our ongoing initiatives to improve our supply chain delivered improvements in variable costs which helped to partially offset the deleverage impact. This marks the third consecutive quarter where we've delivered at least 100 basis points of improvement in our variable costs as a percentage of sales reflecting our team's focus on improving the efficiency of our operations. We are pleased with the momentum in our supply chain initiatives and expect additional benefits from these efforts throughout the year.

第一季度總 SG&A 占淨銷售額的百分比增加了 240 個基點。增長的一半是由於與去年第一季度的一次性項目相比，其餘部分是由於銷售額下降導致的去槓桿化。我們為改善供應鏈而採取的持續舉措改善了可變成本，這有助於部分抵消去槓桿化的影響。這標誌著我們連續第三個季度將可變成本（佔銷售額的百分比）提高了至少 100 個基點，這反映了我們團隊對提高運營效率的關注。我們對供應鏈計劃的發展勢頭感到滿意，並期望全年從這些努力中獲得更多收益。

The wind-down of our Canadian operations is on track with all stores expected to be closed by the end of June. We recorded $309 million in pretax expenses related to the wind-down in the first quarter, toward the low end of our previous estimate range of $300 million to $350 million.

我們的加拿大業務正在逐步結束，所有商店預計將在 6 月底前關閉。我們在第一季度記錄了 3.09 億美元與停業相關的稅前費用，接近我們先前估計範圍 3 億至 3.5 億美元的低端。

EBIT margin was negative 8.5% for the first quarter. After excluding the charges from the wind-down of Canadian operations this year, adjusted EBIT margin was positive 1.6% versus an adjusted EBIT margin of 0.9% in the first quarter of last year. Adjusted EBIT increased $18 million over last year despite $403 million lower sales, reflecting progress on our profit improvement initiatives.

第一季度的息稅前利潤率為負 8.5%。剔除今年加拿大業務結束後的費用後，調整後的息稅前利潤率為 1.6%，而去年第一季度調整後的息稅前利潤率為 0.9%。儘管銷售額減少了 4.03 億美元，但調整後的息稅前利潤比去年增加了 1800 萬美元，這反映了我們在利潤改善計劃方面取得的進展。

We continue to maintain a solid balance sheet and financial position, ending the first quarter with $1.4 billion in available liquidity, including the full $800 million available on our revolving line of credit.

我們繼續保持穩健的資產負債表和財務狀況，第一季度結束時可用流動資金為 14 億美元，其中包括我們循環信貸額度中可用的全部 8 億美元。

Turning to our outlook for the remainder of 2023, I'll first cover the backdrop and related assumptions underlying our guidance. We expect elevated inflation and interest rates will continue to pressure consumer spending throughout the year. We also expect to make continued progress on our key priorities, which will help improve our profitability and mitigate inflationary cost pressures.

談到我們對 2023 年剩餘時間的展望，我將首先介紹我們指導的背景和相關假設。我們預計通貨膨脹和利率上升將繼續對全年的消費者支出造成壓力。我們還期望在我們的關鍵優先事項上繼續取得進展，這將有助於提高我們的盈利能力並減輕通脹成本壓力。

Taking these factors into consideration, we are reaffirming our outlook for revenue, adjusted EBIT and adjusted earnings per share. We are updating our outlook to reflect the charge related to the wind-down of Canadian operations and related tax impacts.

考慮到這些因素，我們重申對收入、調整後息稅前利潤和調整後每股收益的展望。我們正在更新我們的展望，以反映與加拿大業務結束和相關稅收影響相關的費用。

I'll highlight a few factors that shape our outlook in the first and second half of the year for revenue and EBIT margin, starting with revenue. We continue to expect revenue to decline 4% to 6% versus 2022. This outlook includes an approximately 2.5 percentage point negative impact from the wind-down of our Canadian operations, which delivered sales of approximately $400 million in 2022. It also includes an approximately 1.3 percentage point positive impact from the 53rd week in fiscal 2023, which we expect will add approximately $200 million in sales to the fourth quarter.

我將強調幾個影響我們今年上半年和下半年收入和息稅前利潤率前景的因素，首先是收入。我們繼續預計與 2022 年相比，收入將下降 4% 至 6%。這一前景包括我們加拿大業務結束後約 2.5 個百分點的負面影響，該業務在 2022 年實現了約 4 億美元的銷售額。它還包括約與 2023 財年第 53 週相比產生 1.3 個百分點的積極影響，我們預計第四季度銷售額將增加約 2 億美元。

Year-over-year sales comparisons will be more difficult in the first half against our stronger first half in 2022, with more favorable comparisons expected in the second half.

與 2022 年強勁的上半年相比，上半年的同比銷售比較將更加困難，預計下半年會有更有利的比較。

We expect sequential improvements in our business in the second quarter and building into the second half, especially in the Rack as our merchandise assortment continues to improve and we open new stores. We will also lap the impact of discontinuing Rack store fulfillment of online orders beginning in the third quarter.

我們預計我們的業務在第二季度和下半年會有所改善，尤其是在貨架方面，因為我們的商品種類不斷改善，我們開設了新店。我們還將考慮從第三季度開始停止 Rack 商店履行在線訂單的影響。

As a reminder, one week of the Anniversary Sale will shift from the second quarter into the third quarter this year. This will negatively impact second quarter sales and positively impact third quarter sales by approximately 200 basis points.

提醒一下，週年促銷的一周將從今年的第二季度轉移到第三季度。這將對第二季度的銷售額產生負面影響，並對第三季度的銷售額產生約 200 個基點的正面影響。

As a result of these factors, we expect a slight sequential improvement in our top line trend in the second quarter, resulting in a low double-digit decrease in total revenue for the first half, followed by a low single-digit percentage increase in the second half versus the prior year.

由於這些因素，我們預計第二季度的收入趨勢將略有改善，導致上半年總收入出現低兩位數的下降，隨後是低個位數的百分比增長下半年與上年相比。

Turning to EBIT. We remain on track to deliver on our previous outlook for an adjusted EBIT margin of approximately 3.7% to 4.2% for the full year versus 3.3% in 2022. Our forecast assumes that adjusted EBIT margin expansion will be driven primarily by gross margin improvements from our focus on inventory productivity, especially in the second half of the year when compared to the elevated markdowns we took in 2022. We do not expect gross profit margin expansion in the second quarter as we will lap our best gross profit margin of 2022, which was approximately 200 basis points higher than the second half of the year.

轉向息稅前利潤。我們仍然有望實現我們先前的預期，即全年調整後的息稅前利潤率約為 3.7% 至 4.2%，而 2022 年為 3.3%。我們的預測假設調整後的息稅前利潤率擴張將主要由我們的毛利率改善推動專注於庫存生產率，尤其是在下半年，與我們在 2022 年採取的大幅降價相比。我們預計第二季度的毛利率不會擴大，因為我們將達到 2022 年的最佳毛利率，這是比下半年高出約200個基點。

We expect SG&A expenses will continue to deleverage in the second quarter on lower sales, partially mitigated by continued progress on our supply chain optimization efforts. We expect more favorable SG&A expense rate comparisons in the second half of the year as sales trends improve.

我們預計，由於銷售額下降，SG&A 費用將在第二季度繼續去槓桿化，部分原因是我們供應鏈優化工作的持續進展有所緩解。隨著銷售趨勢的改善，我們預計下半年的 SG&A 費用率比較會更加有利。

Given these revenue, gross margin and expense assumptions, we continue to expect adjusted EBIT margin to decrease slightly in the first half of the year and to increase in the second half of the year relative to 2022.

鑑於這些收入、毛利率和費用假設，我們繼續預計調整後的息稅前利潤率將在上半年略有下降，並在下半年相對於 2022 年有所上升。

We are also reaffirming our outlook for adjusted EPS for the full year. On a GAAP basis, we updated estimates for the Canadian wind-down charges and related tax impact. Our revised GAAP earnings per share outlook is now $0.60 to $1 for the full year. Excluding the impact of these charges, we continue to expect adjusted earnings per share of $1.80 to $2.20 for the full year. Our EPS projections exclude the impact of share repurchases, if any.

我們還重申了我們對全年調整後每股收益的展望。在 GAAP 的基礎上，我們更新了對加拿大結束費用和相關稅收影響的估計。我們修訂後的全年 GAAP 每股收益展望現在為 0.60 美元至 1 美元。排除這些費用的影響，我們繼續預計全年調整後的每股收益為 1.80 美元至 2.20 美元。我們的每股收益預測不包括股票回購的影響（如果有）。

Shifting to capital allocation, our priorities remain unchanged. Our first priority, as always, is investing in the business to better serve our customers and support long-term growth. We continue to plan for capital expenditures of 3% to 4% of net sales.

轉向資本配置，我們的優先事項保持不變。一如既往，我們的首要任務是投資於業務，以更好地為我們的客戶服務並支持長期增長。我們繼續計劃資本支出占淨銷售額的 3% 至 4%。

Our second priority is reducing our leverage. We remain committed to an investment-grade credit rating through a combination of earnings improvement and debt reduction. We continue to target a leverage ratio below 2.5x.

我們的第二個優先事項是降低我們的槓桿作用。我們仍然致力於通過收益改善和債務減少相結合的投資級信用評級。我們繼續將槓桿率目標定在 2.5 倍以下。

Our third priority is returning cash to shareholders. Earlier this month, our Board of Directors declared a quarterly cash dividend of $0.19 per share. We repurchased a very small number of shares during the first quarter. We will continue to take a measured approach to share repurchases as we also take into account the macroeconomic environment and market conditions.

我們的第三個優先事項是向股東返還現金。本月早些時候，我們的董事會宣布派發每股 0.19 美元的季度現金股息。我們在第一季度回購了極少數股票。在考慮宏觀經濟環境和市場狀況的同時，我們將繼續採取審慎的方式進行股票回購。

As you've heard from our call today, we continue to execute with agility given uncertainty in the macroeconomic environment. We are making progress in our focus areas, which will continue to drive greater profitability through improving the performance of Rack, increasing inventory productivity and optimizing our supply chain initiatives. We are confident in our ability to navigate through the near-term challenges and remain excited about the future of Nordstrom and our ability to deliver significant shareholder value over time.

正如您今天從我們的電話會議中聽到的那樣，鑑於宏觀經濟環境的不確定性，我們將繼續靈活執行。我們正在我們的重點領域取得進展，這將通過提高 Rack 的性能、提高庫存生產率和優化我們的供應鏈計劃來繼續推動更大的盈利能力。我們對我們應對近期挑戰的能力充滿信心，並對 Nordstrom 的未來以及我們隨著時間的推移為股東創造重大價值的能力保持興奮。

With that, we're ready for questions.

有了這個，我們準備好提問了。

Thank you, Michael. Before we get started with Q&A, we ask that participants please limit themselves to one question and one follow-up. We'll now move to the Q&A session.

謝謝你，邁克爾。在我們開始問答之前，我們要求參與者將自己限制在一個問題和一個後續問題上。我們現在進入問答環節。

(Operator Instructions) Our first question is from Ed Yruma with Piper Sandler.

（操作員說明）我們的第一個問題來自 Ed Yruma 和 Piper Sandler。

I guess, first, a housekeeping question. On the 110 basis points in gross margin improvement, what would that look like if you had stripped Canada out of the comparison? And then just kind of a bigger picture question on the softness in designer, is this driven by a higher-end consumer that's weakening? Or is it a trade-up consumer that maybe during the pandemic bought designer and is maybe normalizing now?

我想，首先，一個內務管理問題。就毛利率提高 110 個基點而言，如果您將加拿大排除在比較之外會是什麼樣子？然後是關於設計師軟性的一個更大的問題，這是由正在減弱的高端消費者驅動的嗎？還是可能在大流行期間購買了設計師並且現在正在正常化的折價消費者？

Ed, it's Michael. I'll take the housekeeping question first and let Pete dive in on designer. So the gross margin expansion is really primarily about the U.S. Our -- the Canada impact is mostly on buying and occupancy costs. It's about 20 basis points or so. And so the vast majority of that improvement is from merchandise margin expansion.

埃德，是邁克爾。我會先回答內務管理問題，然後讓皮特深入了解設計師。因此，毛利率的增長實際上主要與美國有關——我們對加拿大的影響主要是對購買和入住成本的影響。大約是20個基點左右。因此，這種改善的絕大部分來自商品利潤率的擴張。

Yes, it's Pete. Relative to the designer subject, I think we would categorize it more like normalizing. As you know, there was a big run up over the last few years in the designer business and a lot of that was just with more people, new customers in that space than had been in there previously. I think particularly when you look at more of the entry price points of where we participate in designer, that's where we saw, and particularly around items and what have you, we saw quite a bit of growth that has kind of normalized.

是的，是皮特。相對於設計器主題，我認為我們將其歸類為歸一化。如你所知，過去幾年設計師行業出現了巨大的增長，其中很多只是因為這個領域的人和新客戶比以前多了。我認為，特別是當你看到更多我們參與設計師的入門價格點時，這就是我們看到的地方，特別是圍繞物品和你擁有的東西，我們看到了相當多的增長，這種增長已經正常化了。

And so it's important that we mention that relative to where we were pre-pandemic, it's ahead of that. It's still a very big robust part of it, but it is off its peak of what was in the last couple of years during the pandemic time.

因此，重要的是我們要提到相對於大流行前的情況，它領先於大流行。它仍然是它的一個非常強大的部分，但它已經脫離了過去幾年大流行期間的高峰期。

Our next question is from Ashley Helgans with Jefferies.

我們的下一個問題來自 Jefferies 的 Ashley Helgans。

Kind of a follow-up to Ed's question. Just anything you can tell us broadly on the high-end consumer. And then your thoughts around the promotional environment overall?

有點像埃德問題的後續行動。關於高端消費者，您可以廣泛地告訴我們任何事情。然後您對整體促銷環境有何看法？

Yes. With the high-end customer, I guess we would say they're pretty resilient, but they're also cautious. And we're seeing that really across the board, that caution. So we've been really well served to have conservative sales plans and inventory plans so that we have the ability to flow through and sell through. And the good news is that for 1 quarter, we've got momentum and progress on that front. And our plans going forward bodes well, I think, for our ability to continue to improve. I'm sorry, the second question was what? On promotional environment.

是的。對於高端客戶，我想我們會說他們非常有彈性，但他們也很謹慎。我們真的看到了這一點，即謹慎。因此，我們在保守的銷售計劃和庫存計劃方面得到了很好的服務，這樣我們就有能力流通和銷售。好消息是，在第一季度，我們在這方面取得了勢頭和進展。我認為，我們未來的計劃預示著我們繼續改進的能力。對不起，第二個問題是什麼？在促銷環境上。

Is any color you can give us there, yes.

是的，你可以給我們任何顏色嗎？

Yes. So on the promotional environment, the most telling sign of that is just inventory position that our competitors are in. We tend to respond to what's happening around us in terms of price. And you've seen, I think, with -- at least as we've been paying attention to the different companies reporting, it seems like almost everyone is down in their year-over-year inventory level. So I think that probably bodes pretty well for the promotional pressures we might find. But again, it's early days. We'll see how this all plays out. We're anticipating, use that normalized word again, but that we've kind of reached a more expected level, more predictability around where the price promotion is going to come, and we're prepared for that.

是的。因此，在促銷環境中，最明顯的跡象就是我們的競爭對手所處的庫存狀況。我們傾向於在價格方面對我們周圍發生的事情做出反應。我認為，你已經看到——至少在我們一直關注不同公司的報告時，似乎幾乎每個公司的庫存水平都在下降。所以我認為這可能預示著我們可能會遇到促銷壓力。但同樣，現在還為時過早。我們將看看這一切如何進行。我們正在期待，再次使用那個標準化的詞，但我們已經達到了一個更預期的水平，對價格促銷將要到來的地方有更多的可預測性，我們已經為此做好了準備。

Our next question is from Chuck Grom with Gordon Haskett.

我們的下一個問題來自 Chuck Grom 和 Gordon Haskett。

I'm just curious within both banners, any changes in basket composition or basket size since last quarter, are you seeing any incremental trade down at the Rack over the past couple of months? And maybe that helped the business since April?

我只是好奇在兩個橫幅中，自上個季度以來籃子構成或籃子大小的任何變化，你是否看到過去幾個月在機架上有任何增量交易？也許自四月以來這對業務有所幫助？

Chuck, this is Erik. Really not seeing signs of trade down. Traffic remains fairly soft. Our spend per trip is up. It -- if it comparisons to last year, last year's first quarter was unusual on several dimensions. One was we had a lot more clearance business last year. So part of what we're seeing is a bigger percentage of our sales is being done at regular price, which helps that spend per trip.

查克，這是埃里克。真的沒有看到貿易下降的跡象。交通仍然相當疲軟。我們每次旅行的花費增加了。它 - 如果與去年相比，去年第一季度在幾個方面是不尋常的。一是我們去年有更多的清關業務。因此，我們看到的部分情況是，我們的銷售額中有更大比例是以正常價格完成的，這有助於減少每次旅行的支出。

Okay. Great. And then my follow-up would be on Anniversary, you talked about bringing back catalog. Any other changes that you guys are bringing back this year to help the business?

好的。偉大的。然後我的後續行動將在周年紀念日上進行，您談到了帶回目錄。你們今年為幫助業務帶來的任何其他變化？

This is Pete. What we do is we try to iterate on learnings every year and find ways where we can make improvements. I think what we've learned over the years is that it's important to keep in mind, this is a scarcity event based on new product coming in, and when we can create a compelling reason for people to come in and buy something new that, that always works well for us.

這是皮特。我們所做的是嘗試每年重複學習並找到可以改進的方法。我認為多年來我們學到的是，記住這一點很重要，這是一個基於新產品上市的稀缺事件，當我們可以創造一個令人信服的理由讓人們進來購買新產品時，這對我們總是很有效。

And then it's really tapping into our existing loyal customer base. There's a lot of anticipation for this event, it's a unique event. We have a lot of loyalty around that. And so our communications with customers is important. That's why you've seen us with the print catalog, doing more of that, because that's probably the #1 thing we heard from customers that they wanted more of.

然後它真正利用了我們現有的忠實客戶群。對這個事件有很多期待，這是一個獨特的事件。我們對此非常忠誠。因此，我們與客戶的溝通非常重要。這就是為什麼您看到我們在印刷目錄方面做得更多，因為這可能是我們從客戶那裡聽到的他們想要更多的第一件事。

Our next question is from Brooke Roach with Goldman Sachs.

我們的下一個問題來自高盛的布魯克羅奇。

Can you contextualize with a little bit more detail, the recent improvement that you are seeing at Nordstrom Rack, how much of a sequential improvement in trend did you see at quarter end? And were there any particular categories driving the growth? Was it new consumers coming into the brand or higher spend among your existing customers? Any additional detail would be helpful.

您能否更詳細地說明您在 Nordstrom Rack 看到的最近的改進，您在季度末看到了多少趨勢的連續改進？是否有任何特定類別推動了增長？是新消費者進入該品牌還是您現有客戶的更高消費？任何額外的細節都會有所幫助。

Brooke, I'll start and others can fill in. What we mostly see, cause and effect, is as we increase our percentage of strategic brands to our overall inventory mix, our business continues to get better. That happened throughout the quarter. April was our best month of the quarter, and that has continued into May. But we have a ways to go. We're not there yet, but we're laser-focused on that subject in particular.

布魯克，我會開始，其他人可以填寫。我們最常看到的，因果關係是，隨著我們增加戰略品牌在我們整體庫存組合中的百分比，我們的業務繼續變得更好。這在整個季度都發生了。 4 月是本季度表現最好的月份，這種情況一直持續到 5 月。但我們還有很長的路要走。我們還沒有到那一步，但我們特別專注於那個主題。

And I just bring you back to what we know about our customers at the Rack and where we really compete well is having great brands at great prices. And great brands for the most part are brands that they see in our Nordstrom banner. And again, we're seeing good traction on that. So I wouldn't point to any categories in particular that stood out. It's fairly across the board where we get those great brands and higher penetration, we're seeing good traction.

我只是帶你回到我們對機架客戶的了解，以及我們真正競爭激烈的地方是以優惠的價格擁有偉大的品牌。大多數偉大的品牌都是他們在我們的 Nordstrom 橫幅上看到的品牌。再一次，我們看到了很好的牽引力。所以我不會特別指出任何突出的類別。我們獲得了那些偉大的品牌和更高的滲透率，這是相當全面的，我們看到了良好的牽引力。

Our next question is from Noah Zatzkin with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Noah Zatzkin。

This is Ashley on for Noah. Just one for me on Anniversary. Given the tighter buying you guys have called out this year, has anything changed in terms of your planned approach?

這是諾亞的阿什利。週年紀念日只給我一個。鑑於你們今年呼籲收緊購買，你們計劃的方法有什麼變化嗎？

Well, our approach is the same. What we try to do is give customers a compelling reason to buy something new. It's why we talk about new brands. That's why the sale is really different. It's about new products. It's not about old clearance products. And customers clearly like to see their favorite brands, but that's when we partner with the different brand partners that we have to see how we can bring some newness in around the stuff that they also expect. So it's a pretty collaborative effort. It's really a year-round effort. We plan this thing out. I mean literally once the sale starts, stops I mean, we start planning the next year, and we buy it a solid 6 to 8 months out.

好吧，我們的方法是一樣的。我們試圖做的是給客戶一個令人信服的理由來購買新東西。這就是我們談論新品牌的原因。這就是銷售真正不同的原因。它是關於新產品的。這不是關於舊的清倉產品。客戶顯然喜歡看到他們最喜歡的品牌，但當我們與不同的品牌合作夥伴合作時，我們必須了解如何為他們也期望的東西帶來一些新鮮感。所以這是一項非常協作的工作。這真是一年四季的努力。我們計劃好這件事。我的意思是一旦銷售開始，停止我的意思是，我們開始計劃明年，我們會在 6 到 8 個月後購買它。

Our next question is from Matthew Boss with JPMorgan.

我們的下一個問題來自摩根大通的 Matthew Boss。

Great. So 2 questions. Could you speak to the cadence of sales as the quarter progressed at full line? And then here in May, what you're seeing? Maybe just elaborate on the change in category trends that you cited between active or casual relative to dressy and occasion wear? And then, Michael, on gross margin, could you just expand on the inventory productivity initiative that was a key driver of gross margin in the first quarter? And then how best to think about the duration of those initiatives as we think about the balance of the year?

偉大的。所以2個問題。隨著本季度全線進展，您能否談談銷售節奏？然後在五月這裡，你看到了什麼？也許只是詳細說明您引用的運動或休閒相對於正裝和場合穿著的類別趨勢變化？然後，邁克爾，關於毛利率，你能否擴大庫存生產率計劃，這是第一季度毛利率的關鍵驅動因素？那麼，在我們考慮一年的餘額時，如何最好地考慮這些舉措的持續時間？

Yes, Matt, I can take both of those. So first of all, on the cadence of sales during the quarter. Directionally, it was consistent in that we started off with a decent February. We saw softness in March in both banners. And we saw a pretty meaningful recovery in April. As Erik said, April was our best month. We saw improvement in both banners and most pronounced at the Rack. We've seen continued sequential improvement in May also, again, both banners, but more pronounced at Rack. I wouldn't say huge differences in terms of category mix across that time. So it was more or less kind of the tide that lifted or lowered the boats as we went through.

是的，馬特，我可以接受這兩個。首先，關於本季度的銷售節奏。從方向上講，我們從一個不錯的二月開始是一致的。我們在三月份的兩個橫幅中都看到了疲軟。我們在 4 月份看到了非常有意義的複蘇。正如埃里克所說，四月是我們最好的月份。我們看到兩個橫幅都有改進，在機架上最為明顯。我們在 5 月份也看到了持續的連續改進，同樣是兩個橫幅，但在 Rack 上更為明顯。我不會說那段時間在類別組合方面存在巨大差異。因此，當我們經過時，或多或少是潮汐使船隻升高或降低。

As far as gross margins, so we talked about one of our big key priorities this year around inventory productivity was first and foremost, starting the year with cleaner and more current inventories and we did that. As you'll recall, we took some meaningful excess markdowns in the third and fourth quarters of last year to get ourselves in a cleaner and healthier position. And that just put us in a better position to start the quarter.

至於毛利率，所以我們談到了今年我們圍繞庫存生產率的一個重要優先事項，首先是，從今年開始以更清潔和更新的庫存開始，我們做到了。你會記得，我們在去年第三和第四季度進行了一些有意義的過度降價，以使我們自己處於更清潔和更健康的位置。這讓我們在本季度開始時處於更好的位置。

Secondly, we're managing with conservative sales plans as we go through the year, and that includes use of reserves and other measures to hold back some of our buying until we get closer into season. And then we're targeting faster turns. We've set a target for ourselves of a 10% increase in turn for the year.

其次，我們在這一年中採用保守的銷售計劃進行管理，其中包括使用儲備金和其他措施來阻止我們的一些購買，直到我們接近旺季。然後我們的目標是更快的轉彎。我們為自己設定了今年增長 10% 的目標。

And so just collectively, what that means is that we're operating on leaner inventory levels, more current inventory levels, with less to markdown, less susceptible to shrink, and you just get better margins and better productivity out of that. We would expect, as we hold to those disciplines throughout the year, that those benefits should continue.

因此，總的來說，這意味著我們在更精簡的庫存水平、更多的當前庫存水平、更少的降價、更不容易收縮的情況下運營，你只會從中獲得更好的利潤和更高的生產率。我們預計，隨著我們全年堅持這些紀律，這些好處應該會持續下去。

But as you look at the year-over-year comparisons, where we have the biggest opportunity for improvement over last year is the second half because, again, that's when we took really elevated levels of markdowns last year. And if we can just get back to something more in keeping with sort of historical trend, we've got a lot of upside in the second half of the year.

但是當你看一下同比比較時，我們比去年有最大的改進機會是下半年，因為那是我們去年真正提高降價水平的時候。如果我們能夠回到更符合某種歷史趨勢的東西，那麼我們在今年下半年會有很大的上漲空間。

Our next question is from Dana Telsey with Telsey Advisory Group.

我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

Just wanted to follow up on you mentioned about the penetration of strategic brands was increasing at Rack. Where are you relative to where you were, where you want to be and what benefit to margin does come from that? And the other thing you mentioned in terms of brands and margin is the expansion of the private brand performance. Where is that? Where is it going? And how do you see the margin impact there, too?

只是想跟進你提到的戰略品牌在 Rack 的滲透率正在增加。相對於你過去的位置，你現在在哪裡，你想去哪裡，利潤率從中得到什麼好處？你在品牌和利潤方面提到的另一件事是自有品牌業績的擴大。哪裡是？它要去哪裡？您如何看待那裡的利潤率影響？

Dana, I'll take the first part. Pete can take the private brand question. We're still somewhat early innings on the strategic brands. And to Michael's point he's made of starting the year clean, that put us in a position to be more aggressive and get after the strategic brands. And again, we're seeing good traction there.

Dana，我來做第一部分。皮特可以回答自有品牌問題。我們在戰略品牌方面仍處於早期階段。就邁克爾的觀點而言，他讓今年一帆風順，這讓我們能夠更加積極進取，追逐戰略品牌。再一次，我們在那裡看到了良好的牽引力。

Just for context, it's a means to an end. It's a way of driving profitable sales. We get higher sell-through in the strategic brands, so it does drive top line, but also is more sell-through at regular price. We do get higher margins from the increased penetration of these strategic brands. So exactly what those brands are can and should evolve as we move through the year and customers respond differently. So we need to stay nimble, which is even more important.

就上下文而言，這是達到目的的一種手段。這是推動盈利銷售的一種方式。我們在戰略品牌中獲得了更高的銷售率，因此它確實推動了收入增長，但在正常價格下的銷售率也更高。我們確實從這些戰略品牌的滲透率提高中獲得了更高的利潤。因此，這些品牌究竟是什麼，可以而且應該隨著我們一年的發展和客戶的不同反應而發展。所以我們需要保持敏捷，這一點更為重要。

But I think the -- what Michael pointed out of having -- starting the year clean and having dollars available and planning for faster turns, I think that is most impactful on our Rack business. To be opportunistic, to be aggressive of what's available out there in the off-price market and be able to really see the brands that are most resonating with our customers is super important. So we expect to continue to have improvement. We expect continued sequential improvement in Rack performance as we go through the year, again, because we still see upside on that strategic brand initiative.

但我認為 - 邁克爾指出的 - 以乾淨的方式開始新的一年，並有可用的資金併計劃更快的周轉，我認為這對我們的機架業務影響最大。投機取巧，積極進取低價市場上的可用產品，並能夠真正看到最能引起客戶共鳴的品牌，這一點非常重要。所以我們希望繼續有改進。我們預計，隨著這一年的到來，機架性能將繼續持續改善，因為我們仍然看到該戰略品牌計劃的上行空間。

Yes, it's Pete. With the private brands, and you've heard us talk about this a bit. I mean we had poor performance in '21 and '22. We took a lot of efforts to clean up all inventory that was not working for us at the end of '22, and that's put us in a good position in '23 and going forward. Now with private brands, the lead times are a lot longer. We're designing it and producing it and bringing it in, what have you. And that just takes more time. So it's not a switch we can flip all at once.

是的，是皮特。對於自有品牌，您已經聽我們談過一點。我的意思是我們在 21 年和 22 年的表現不佳。我們付出了很多努力來清理所有在 22 年底對我們不起作用的庫存，這使我們在 23 年和未來處於有利地位。現在有了自有品牌，交貨時間要長得多。我們正在設計它，生產它並把它帶進來，你有什麼。而這只是需要更多的時間。所以這不是我們可以一次翻轉的開關。

I can tell you that, for example, in the Rack division, private brands was the #1 volume brand for us was the Nordstrom brand, which is very encouraging. In terms of the Nordstrom banner, we've got some green shoots around some of the new product that's been coming in, and we expect to see incremental improvement throughout this year. And hopefully, as we get into next year, you'll start seeing some more outsized growth improvement. It's a big area of opportunity for us, and we are counting on sizable improvements over the next couple of years in our private brands.

我可以告訴你，例如，在貨架部門，自有品牌是我們銷量第一的品牌是 Nordstrom 品牌，這非常令人鼓舞。就 Nordstrom 的旗幟而言，我們已經圍繞一些新產品出現了一些新芽，我們預計今年會看到逐步改進。希望隨著我們進入明年，您將開始看到一些更顯著的增長改善。這對我們來說是一個巨大的機會領域，我們指望在未來幾年內我們的自有品牌會有可觀的改進。

Our next question is from Alex Straton with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Straton。

I've got 2 for you. First, it sounds like some of the supply chain initiatives are certainly shining through in SG&A. So can you just give some examples of the success there and how you're thinking about it going forward? And then second, just the reiterated profitability guide on the back of the first quarter beat, seems to imply you've got a more conservative 2Q onwards outlook. Can you just walk us through what's driving that? Is it gross margin, SG&A? Or how do we think about that?

我有 2 個給你。首先，聽起來一些供應鏈計劃肯定在 SG&A 中大放異彩。那麼，您能否舉例說明那裡取得的成功，以及您如何看待它的發展？其次，只是在第一季度擊敗後重申的盈利能力指南，似乎暗示你對第二季度的展望更為保守。你能告訴我們是什麼驅動了它嗎？是毛利率、SG&A 嗎？或者我們如何看待它？

Alex, it's Michael. Yes, I'll take those. First of all, on supply chain. I'll just give you a couple of examples there. So we started talking about this last year as well, and we just continue to kind of build on all of them in different areas. But there's unit flow, optimizing that with better inbound processes. There's velocity and throughput in the centers, we improved that by over 20% with better scheduling and training. There's click to delivery speed, getting the number of orders under 4 days, for example, that's up over 40% from last year.

亞歷克斯，是邁克爾。是的，我會拿那些。首先，在供應鏈上。我只會給你舉幾個例子。所以我們去年也開始討論這個問題，我們只是繼續在不同領域的所有這些方面進行建設。但是有單位流程，通過更好的入站流程對其進行優化。中心有速度和吞吐量，我們通過更好的調度和培訓將其提高了 20% 以上。例如，點擊交付速度，4 天以內的訂單數量，比去年增加了 40% 以上。

So we just continue to see a lot of opportunities across productivity and efficiency in our network, return transportation efficiencies, scaling our West Coast omnichannel center. As you heard Erik say, it's our largest component of SG&A, and there's a lot of opportunity there, and we're really pleased with how much progress we've made, but we think there's still more to come. Now we will start lapping the third quarter of last year when we really started to see that reach critical mass. So the year-over-year improvement will not be quite as robust then, but we do believe there's continued opportunity.

因此，我們只是繼續看到我們網絡中生產力和效率的大量機會，返回運輸效率，擴展我們的西海岸全渠道中心。正如您聽到 Erik 所說，它是我們 SG&A 中最大的組成部分，那裡有很多機會，我們對我們取得的進步感到非常高興，但我們認為還有更多。現在，當我們真正開始看到達到臨界質量時，我們將開始對去年第三季度進行研磨。因此，同比改善不會那麼強勁，但我們相信仍有持續的機會。

As far as the guidance and holding that for the year, yes, we were pleased with the first quarter performance on our profitability. But for context, it's a small quarter. Anniversary is a big driver in Q2. And of course, then there's the holidays in Q4, and it remains an uncertain environment. So while we're happy with the way we're starting off Q2, it remains early days in the year.

就今年的指導和持有而言，是的，我們對第一季度的盈利表現感到滿意。但就上下文而言，這是一個小四分之一。週年紀念日是第二季度的重要推動力。當然，還有第四季度的假期，這仍然是一個不確定的環境。因此，雖然我們對第二季度開始的方式感到滿意，但它仍然是今年的早期。

Our next question is from Simeon Siegel with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Simeon Siegel。

Is there any way to characterize what percent of the increased penetration of strategic brands at Rack came from buys specifically for Rack versus maybe product that came from the full-price banner? And then can you just maybe elaborate a little bit on the GMV versus revenues? I know the GMV is, I think, trending slightly below revenues. So just how to think about that as initiative given the context before?

有什麼方法可以描述 Rack 戰略品牌滲透率增加的百分比是來自專門為 Rack 購買的產品還是來自全價橫幅的產品？然後您能否詳細說明 GMV 與收入的關係？我知道 GMV 的趨勢略低於收入。那麼，在之前的背景下，如何將其視為倡議呢？

Okay. I'll take the Rack. It's mostly product we're buying for the Rack. As we entered the year in a clean inventory position, so we haven't had a lot of cleanup to do in the Nordstrom banner of transferring goods for the Rack. So it's mostly been our dedicated Rack buying team focusing on these strategic brands.

好的。我會拿架子。它主要是我們為機架購買的產品。當我們以乾淨的庫存狀況進入這一年時，我們在為貨架轉移貨物的 Nordstrom 橫幅上沒有太多的清理工作要做。因此，主要是我們專門的機架購買團隊專注於這些戰略品牌。

Yes, Simeon, this is Michael. As far as the sales versus GMV dynamics, as you indicated, GMV is slightly below sales performance. The designer is a category where we are more likely to have concession-type models and unowned inventory models where the volume, the totality of the volume will show up in GMV and only the commission revenue, if you will, will show up in sales. So to the extent the designer has softened recently, that's going to play out in that dynamic.

是的，西蒙，這是邁克爾。正如您所指出的，就銷售與 GMV 的動態關係而言，GMV 略低於銷售業績。設計師是我們更有可能擁有特許類型模型和無庫存模型的類別，其中數量，總數量將顯示在 GMV 中，只有佣金收入（如果你願意的話）將顯示在銷售額中。因此，就設計師最近軟化的程度而言，這將在這種動態中發揮作用。

Our next question is from Lorraine Hutchinson with Bank of America.

我們的下一個問題來自美國銀行的 Lorraine Hutchinson。

It sounds like your outlook for improvement through the year at Rack includes better product and the benefit of new stores. How are you thinking about full line progression through the year if we exclude some of the timing shifts around the Anniversary Sale and the Canadian exit? And then what are the key drivers to improving full-line sales this year?

聽起來你在 Rack 全年的改進前景包括更好的產品和新店的好處。如果我們排除週年促銷和加拿大退出的一些時間變化，您如何考慮全年的全線進展？那麼今年提高全線銷售的主要驅動因素是什麼？

Lorraine, it's Michael. I can talk a little bit about the assumptions and Erik, or Pete can talk about just some of the things we got going on in our Nordstrom banner. So yes, we do expect sequential improvement. As you indicated, we'll continue to see the Canada impact of roughly 250 basis points every quarter weigh on us there. You'll see some timing shift between Q2 and Q3 around Anniversary.

洛林，是邁克爾。我可以談談假設，Erik 或 Pete 可以談談我們在 Nordstrom 旗幟上發生的一些事情。所以是的，我們確實期望連續改進。正如您所指出的，我們將繼續看到加拿大每季度對我們造成大約 250 個基點的影響。您會在周年紀念前後看到 Q2 和 Q3 之間的一些時間變化。

But other than that, I think we would just expect kind of continued sequential improvement in the business. And part of that is also a reflection of, again, last year's comparisons. We had a much tougher second half of the year in 2022. So those comparisons will be easier. We did have some excess inventories to clean up there as well, but -- and that negatively impacted our business. So you should see that come through in terms of the Nordstrom performance as well.

但除此之外，我認為我們只希望業務能夠持續改進。部分原因也再次反映了去年的比較結果。我們在 2022 年下半年經歷了更加艱難的時期。所以這些比較會更容易。我們確實也有一些多餘的庫存需要清理，但是——這對我們的業務產生了負面影響。因此，您也應該在 Nordstrom 的性能方面看到這一點。

Yes. When I call out in the Nordstrom banner, first of all stores continue to recover from the pandemic. And there's -- as we talked about previously, there's been some geographic difference that we had during the pandemic, more urban stores, in particular, being slower to recover. So we're seeing that recovery in stores being much more across the board at Nordstrom banner and for that to continue.

是的。當我在 Nordstrom 的旗幟上大聲疾呼時，首先所有的商店都在繼續從大流行中恢復過來。而且——正如我們之前談到的那樣，我們在大流行期間存在一些地域差異，尤其是更多城市商店的恢復速度較慢。因此，我們看到 Nordstrom 旗下商店的複蘇更為全面，而且這種情況還會繼續。

Digitally, we continue to look for ways to bring more selection to our customers and that especially through alternative inventory models, drop-ship being one, having ways of bringing selection to our customers from the brands that they really love and finding different ways to work with our partners to do that. And then connecting all that is the omnichannel capabilities we've been investing in for a number of years. We're continuing to see a lot of goodness come from that, and that's goodness in both sales, but that's also a goodness in engagement, customer engagement, things like taking returns more convenient, with stylists and having digital capability for our stylists to connect with customers without them coming into the store. Things like alterations capabilities, being able to do a Buy Online, Pick Up In-Store of a nordstrom.com order in a Rack store, things like that, that are fairly unique or mature for us. We continue to see a lot of opportunities and get feedback from Nordstrom banner customers, in particular, that those capabilities are really resonating with them.

在數字化方面，我們繼續尋找方法為我們的客戶帶來更多選擇，尤其是通過替代庫存模型，drop-ship 是一種，有辦法從他們真正喜歡的品牌中為我們的客戶帶來選擇，並找到不同的工作方式與我們的合作夥伴一起做到這一點。然後連接我們多年來一直投資的全渠道功能。我們繼續看到很多好處來自於此，這在銷售方面都是好處，但在參與度、客戶參與度、退貨等方面也有好處，與造型師以及我們的造型師具有數字連接能力與沒有進入商店的顧客在一起。諸如更改功能、能夠在線購買、在 Rack 商店中提取 nordstrom.com 訂單的店內取貨之類的事情，對我們來說是相當獨特或成熟的。我們繼續看到很多機會，並從 Nordstrom 的旗幟客戶那裡得到反饋，特別是，這些功能確實引起了他們的共鳴。

I'm going to pile on here, it's Pete. The one thing that we probably don't talk about enough on these calls is the way the customer service impacts our business. And that is most played out really in the physical store environment. It matters everywhere, but it really is a sharp focus that happens there in stores.

我要在這裡繼續前進，是皮特。我們在這些電話中可能沒有充分討論的一件事是客戶服務影響我們業務的方式。這在實體店環境中最能發揮作用。它無處不在，但它確實是商店裡發生的一個尖銳的焦點。

And we've spent a lot of time in our different stores across the country over the last several months, and it's very heartening for us to see the spirit is alive and well in terms of people feeling that accountability, that ownership and that empowerment to take care of the customer in front of them. And as we have more coming in the door these days, I think it gives a lot of momentum and purpose and intention to what we're doing there. So I just want to give a shout out to our teams in the stores. They're doing a really nice job. And you can see the way customers appreciate that. And it is no doubt that it pays dividends in our business results.

在過去的幾個月裡，我們在全國各地的不同商店度過了很多時間，看到這種精神在人們感受到責任感、主人翁感和賦權方面依然存在和良好，這讓我們感到非常振奮照顧好他們面前的客戶。隨著這些天我們有更多人進來，我認為這為我們在那裡所做的事情提供了很大的動力、目的和意圖。所以我只想向我們在商店的團隊大聲疾呼。他們做得很好。您可以看到客戶欣賞這一點的方式。毫無疑問，它會為我們的業務成果帶來紅利。

Our last question comes from Janet Kloppenburg with JJK.

我們的最後一個問題來自 JJK 的 Janet Kloppenburg。

I just wondered on the Rack, where you think you are in terms of planned content improvement, I've noticed the change and the elevation. And I'm wondering if the outlook is for the content to further improve and if that means that higher price points will come to the Rack as you bring in more elevated products? And on the designer matrix at the full-line stores, I'm just wondering where you are in that improvement. Do you understand what designers you want to have, when will you achieve the right balance and mix of designers? And when do you expect that the clearance of the problematic designer product will be behind you?

我只是想知道在機架上，你認為你在計劃的內容改進方面的位置，我注意到了變化和提升。我想知道內容的前景是否會進一步改善，這是否意味著隨著您引入更多升級產品，更高的價格點將出現在機架上？在全線商店的設計師矩陣上，我只是想知道你在改進中的位置。你明白你想要什麼樣的設計師嗎？你什麼時候才能達到設計師的正確平衡和組合？您預計什麼時候問題設計師產品的清關會在您身後？

Yes, this is Pete. I wish I had a perfect answer for all that but it's a little bit the crystal ball of retailing. I'll start with the Rack part of it. We've been on this journey to really transform our business there and be very focused about our strategy. So -- but I'd still say it's relatively early innings. And we've known what we wanted to do, but it's hard to flip the switch all once there as well. We've got the green shoots. We've got the momentum. We know we've got a proof of concept that's worth continuing to invest in. And what we would hope to be able to do here is to fill you in our progress every quarter and how that's going, and we fully expect that, that will continue to improve for us.

是的，這是皮特。我希望我對所有這些都有一個完美的答案，但這有點像零售業的水晶球。我將從它的機架部分開始。我們一直在努力真正改變我們在那裡的業務，並非常關注我們的戰略。所以——但我仍然會說這是相對較早的局。而且我們已經知道我們想做什麼，但也很難一次又一次地翻轉開關。我們已經萌芽了。我們有動力。我們知道我們已經有了一個值得繼續投資的概念證明。我們希望能夠在這裡做的是讓您了解我們每個季度的進展以及進展情況，我們完全期待，這將繼續為我們改進。

So I guess we view that as early innings that we've got more to accomplish there. Erik mentioned it in terms of our strategic brand penetration, what have you. It's pretty good. It needs to be better, and it will be. And we'll keep you informed as, again, what he said is, this is all the means to an end, and that's how to improve sales and productivity in the stores.

所以我想我們認為這是我們還有更多工作要做的早期局。 Erik 在我們的戰略品牌滲透方面提到了它，你有什麼。這個很不錯。它需要變得更好，而且會變得更好。我們會再次通知您，因為他所說的是，這是達到目的的所有手段，這就是提高商店銷售額和生產力的方法。

Related to designer, what works and what doesn't work. Again, that's just the fickle nature of fashion to some degree. I mean, we're lucky that we've got a relationship with all of the biggest designer brands and we have access to a lot of it. We have to partner with them to figure out the best, most effective distribution strategies but I hope you get the impression, it's an important part -- foundational part of our end-to-end offer that has kind of a unique breadth to it.

與設計師有關，什麼有效，什麼無效。同樣，這在某種程度上只是時尚善變的本質。我的意思是，我們很幸運，我們與所有最大的設計師品牌都有關係，而且我們可以接觸到很多。我們必須與他們合作，找出最好、最有效的分銷策略，但我希望你能得到這樣的印象，這是一個重要的部分——我們端到端產品的基礎部分，具有獨特的廣度。

We have a lot of customers that want the best the world has to offer, and we take that responsibility seriously and working with our brand partners to deliver. So we think designer is going to continue to be an important part of our future. We need the remainder of this year to clean up the relatively unproductive inventory. Michael talked about that. That is all contemplated and baked into the forecast that we have. But we continue on and we, again, have a lot of confidence that designer will continue to be an important part of our mix.

我們有很多客戶想要世界上最好的產品，我們認真對待這一責任，並與我們的品牌合作夥伴合作交付。所以我們認為設計師將繼續成為我們未來的重要組成部分。我們需要今年剩餘時間來清理相對低產的庫存。邁克爾談到了這一點。這一切都已考慮並納入我們的預測中。但我們繼續前進，我們再次充滿信心，設計師將繼續成為我們組合的重要組成部分。

We want to thank you for joining today's call. A replay, along with the slide presentation and prepared remarks, will be available for 1 year on our website. Thank you for your interest in Nordstrom.

我們要感謝您參加今天的電話會議。重播連同幻燈片演示和準備好的評論將在我們的網站上提供 1 年。感謝您對 Nordstrom 的關注。

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

今天的會議到此結束。您此時可以斷開線路，我們感謝您的參與。