諾德斯特龍百貨 (JWN) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Nordstrom Second Quarter 2023 Earnings Conference Call. (Operator Instructions). And as a reminder this conference is being recorded. At this time, I'll turn the call over to Sara Penner, Manager of Investor Relations for Nordstrom. Thank you. You may begin.

您好，歡迎參加 Nordstrom 2023 年第二季度收益電話會議。 （操作員說明）。作為提醒，本次會議正在錄製中。此時，我會將電話轉給 Nordstrom 投資者關係經理 Sara Penner。謝謝。你可以開始了。

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. Participating in today's call are Erik Nordstrom, Chief Executive Officer; Pete Nordstrom, President and Chief Brand Officer; and Cathy Smith, Chief Financial Officer, who will provide a business update and discuss the company's second quarter performance.

下午好，感謝您加入我們。在開始之前，我想提一下，我們將參考幻燈片，您可以在nordstrom.com 的投資者關係部分查看幻燈片。我們的討論可能包括前瞻性陳述，因此請參閱包含我們安全港語言的幻燈片。首席執行官 Erik Nordstrom 參加了今天的電話會議； Pete Nordstrom，總裁兼首席品牌官；首席財務官 Cathy Smith 將提供業務最新情況並討論公司第二季度的業績。

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

現在我將把電話轉給埃里克。

Thank you, Sara, and good afternoon, everyone. Thanks for joining us today. Before we begin, I'd like to welcome our new CFO, Cathy Smith to our earnings call. Cathy is a proven finance leader with many years of experience delivering business results. She has deep expertise navigating the dynamic retail environment in her prior roles with some of the largest retailers in the country. We are thrilled to have her on the team. You will hear more from her today.

謝謝薩拉，大家下午好。感謝您今天加入我們。在我們開始之前，我想歡迎我們的新任首席財務官 Cathy Smith 參加我們的財報電話會議。 Cathy 是一位久經考驗的財務領導者，擁有多年交付業務成果的經驗。她之前在國內一些最大的零售商任職，在應對動態零售環境方面擁有深厚的專業知識。我們很高興她加入我們的團隊。今天你會聽到她的更多消息。

I'll start with our Q2 performance. We delivered solid results in the second quarter, with earnings per share higher than last year despite lower sales. As we've said since the beginning of this year, we saw clear opportunities to drive higher profitability even in a challenging sales environment. We continue to make progress on our 3 key priorities to improve performance at Nordstrom Rack, increased inventory productivity and optimize our supply chain capabilities.

我將從我們第二季度的表現開始。我們在第二季度取得了穩健的業績，儘管銷售額下降，但每股收益仍高於去年。正如我們自今年年初以來所說，即使在充滿挑戰的銷售環境中，我們也看到了提高盈利能力的明顯機會。我們繼續在 3 個關鍵優先事項上取得進展，以提高 Nordstrom Rack 的績效、提高庫存生產力並優化我們的供應鏈能力。

Our teams performed well, working to improve the customer experience while staying focused on these priorities. Our top line results improved sequentially from the first quarter at both banners. At the Nordstrom banner, our teams did a good job curating the assortment for our anniversary sale, balancing relevance that things customers expect to find with inspiration, the new items they discover shopping online and in-store. Customers responded positively to newness in our fall assortment during our successful anniversary event particularly in stores.

我們的團隊表現良好，致力於改善客戶體驗，同時專注於這些優先事項。我們的營收業績較第一季度連續有所改善。在諾德斯特龍(Nordstrom) 旗幟下，我們的團隊出色地策劃了周年紀念促銷的商品，平衡了客戶期望找到的東西與靈感的相關性，以及他們在網上和店內購物時發現的新商品。在我們成功的周年紀念活動期間，顧客對我們秋季產品系列的新產品做出了積極的反應，特別是在商店裡。

At its core, anniversary is a one-of-a-kind event that rewards and engages our loyal customers with brand-new product from the best brands at reduced prices for a limited time. We saw higher engagement throughout the event with more customers this year attending over 740 events and over 90% of our highest level Nordy Club members shopping during the sale. In addition, we're pleased that anniversary had a very strong inventory sell-through, which was up 15% from last year and puts us in a better inventory position as we enter the second half.

從本質上講，週年紀念是一項獨一無二的活動，旨在獎勵並吸引我們的忠實客戶，在有限的時間內以折扣價提供來自最佳品牌的全新產品。我們在整個活動期間看到了更高的參與度，今年有更多客戶參加了 740 多場活動，超過 90% 的最高級別 Nordy Club 會員在促銷期間進行了購物。此外，我們很高興周年紀念日的庫存銷售量非常強勁，比去年增長了 15%，這使我們在進入下半年時處於更好的庫存狀況。

At Nordstrom Rack, our initiatives to improve our product mix with strategic brands helped deliver sequential improvements in both top line and profitability. Sales trends at the Rack also improved sequentially throughout the quarter, and July was our best month.

在 Nordstrom Rack，我們通過戰略品牌改善產品組合的舉措有助於實現營收和盈利能力的連續改善。 Rack 的銷售趨勢在整個季度也連續改善，7 月是我們表現最好的月份。

Looking ahead, we remain confident in our ability to deliver against the financial outlook we set for 2023, even as we continue to navigate economic uncertainty in the near term. We're encouraged by the progress we made this year and remain focused on delivering against our 3 key priorities in the second half to drive higher profitability and return to long-term profitable growth. I'll highlight a few wins we had during the second quarter within our 3 priorities: improving performance at Nordstrom Rack, increasing inventory productivity, and continuing to advance our supply chain optimization initiatives. At Nordstrom Rack, we are delivering on our promise of offering great brands at great prices, and our teams made significant progress on our initiatives to improve both sales and profitability. As we shift our assortment mix to include more of the brands we know our customers respond to, we are seeing results improve through a higher sell-through and faster inventory turns, giving customers newness each time they shop at Nordstrom Rack.

展望未來，儘管我們在短期內繼續應對經濟不確定性，但我們仍然對實現 2023 年財務前景的能力充滿信心。我們對今年取得的進展感到鼓舞，並將繼續專注於實現下半年的 3 個關鍵優先事項，以提高盈利能力並恢復長期盈利增長。我將重點介紹我們在第二季度的 3 個優先事項中取得的一些成果：提高 Nordstrom Rack 的績效、提高庫存生產力以及繼續推進我們的供應鏈優化計劃。在 Nordstrom Rack，我們兌現了以優惠價格提供優質品牌的承諾，我們的團隊在提高銷量和盈利能力的舉措方面取得了重大進展。當我們改變商品組合以納入更多我們知道客戶反應的品牌時，我們看到業績通過更高的銷量和更快的庫存周轉而得到改善，讓客戶每次在 Nordstrom Rack 購物時都有新鮮感。

In the second quarter, sales from strategic brands came in at our target of 65%, and we've planned our on-order for the second half similarly to meet our goal. We are pleased with the progress we made to expand our reach with 8 new Rack stores opened to date in 2023, and we look forward to opening 11 additional new stores by the end of the year. Rack stores are a great investment with returns that exceed our cost of capital in a short payback period. Rack stores also represent the largest source of new customers for Nordstrom and we are bringing the Rack's unique product offering and suite of convenient services to more markets as we expand our footprint.

第二季度，戰略品牌的銷售額達到了我們目標的 65%，我們也計劃了下半年的訂單，以實現我們的目標。我們對 2023 年迄今為止開設 8 家新 Rack 商店在擴大業務範圍方面取得的進展感到高興，我們期待在今年年底前再開設 11 家新商店。貨架商店是一項偉大的投資，其回報在短時間內就超過了我們的資本成本。 Rack 商店也是 Nordstrom 最大的新客戶來源，隨著我們擴大業務範圍，我們正在將 Rack 的獨特產品和一系列便捷服務推向更多市場。

Turning to our second priority of improving inventory productivity, we continue to manage with leaner inventories, improved sell-through, and faster turns across most of our categories, resulting in gross margins that are on par with last year's Q2, which was the highest margin quarter of 2022. We also made progress rightsizing our designer inventory and continue our work to further reduce our position there. We are entering the second half of the year in a good inventory position at both banners with overall levels down 18% compared to last year versus an 8% decrease in sales. Stronger sell-through during the anniversary sale positions us well to be more responsive to what customers are buying in the second half of the year. Our lower inventory levels will set us up to deliver gross margin improvements, particularly in the fourth quarter compared to last year.

談到提高庫存生產力的第二要務，我們繼續通過精簡庫存、提高銷售率和加快大多數類別的周轉速度來進行管理，從而使毛利率與去年第二季度的毛利率持平，這是毛利率最高的季度2022 年第四季度。我們還在調整設計師庫存方面取得了進展，並繼續努力進一步減少我們的職位。進入今年下半年，我們的兩個品牌的庫存狀況都很好，總體水平比去年下降了 18%，而銷售額則下降了 8%。週年促銷期間的強勁銷售量使我們能夠更好地響應客戶在下半年購買的商品。我們較低的庫存水平將使我們能夠實現毛利率的提高，特別是與去年相比，第四季度。

Turning now to our third priority, supply chain optimization, we delivered a better experience to our customers through faster delivery, especially during anniversary. For the fourth 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.

現在轉向我們的第三個優先事項，即供應鏈優化，我們通過更快的交貨速度為客戶提供更好的體驗，尤其是在周年紀念日期間。與上一年相比，可變供應鏈成本與銷售額相比連續第四個季度下降了 100 個基點，有助於緩解銷售額下降導致的整體 SG&A 去槓桿化。

Since we started, we're delivering faster and at lower cost. We began our current supply chain optimization work in early 2022. And since then, we have delivered significant customer benefits and operational efficiencies. Compared to the first quarter of 2022, supply chain cost per unit in the second quarter of this year were 5% lower against an inflationary backdrop of about 7% over that time. Looking ahead, we continue to seek out additional efficiencies in flow and improve productivity through inventory management initiatives.

自成立以來，我們的交付速度更快，成本更低。我們於 2022 年初開始當前的供應鏈優化工作。自那時起，我們為客戶帶來了顯著的效益並提高了運營效率。與 2022 年第一季度相比，今年第二季度的單位供應鏈成本降低了 5%，而當時的通脹背景約為 7%。展望未來，我們將繼續通過庫存管理舉措尋求更高的流程效率並提高生產力。

In closing, we are making solid progress against the 3 priorities we set at the beginning of the year, and we'll continue to focus on these goals. We are fortunate to have an experienced team who has embraced a more disciplined operational approach we are taking to manage near-term headwinds while continuing to keep the customer at the center of everything we do.

最後，我們在年初設定的 3 個優先事項上取得了紮實的進展，我們將繼續關注這些目標。我們很幸運擁有一支經驗豐富的團隊，他們採用了更加嚴格的運營方法，我們正在採取這種方法來管理近期的不利因素，同時繼續將客戶置於我們所做的一切的中心。

We have a strong balance sheet and cash position and are confident that by continuing to invest in our digital and supply chain capabilities as well as in our stores, we will be better positioned to drive sustained profitable growth and long-term shareholder value. We look forward to sharing our continued progress in the quarters ahead.

我們擁有強大的資產負債表和現金狀況，並相信通過繼續投資於我們的數字和供應鏈能力以及我們的商店，我們將能夠更好地推動持續的盈利增長和長期股東價值。我們期待分享我們在未來幾個季度的持續進展。

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

這樣，我就把它交給皮特了。

Thanks, Erik. I'll cover our category performance and the anniversary sale, and then I'll discuss the progress we're making on inventory management and supply chain. Starting with merchandise performance. Most categories improved sequentially from the first quarter in terms of year-over-year trends. The active category was up slightly from last year, driven by active footwear. Customers responded well to new offerings and selections from brands HOKA, On Running, New Balance, and Nike. Beauty continued to perform relatively well at both banners and the category was up slightly versus last year. At Nordstrom Rack, our expanded offerings from great brands, including MAC, Too Faced and Clinique did well. Kids and Men's apparel each performed better than average. Women's apparel improved sequentially from the first quarter but performed lower than average.

謝謝，埃里克。我將介紹我們的品類表現和周年銷售，然後我將討論我們在庫存管理和供應鏈方面取得的進展。從商品性能開始。大多數類別的同比趨勢較第一季度連續改善。在運動鞋的推動下，運動類別較去年略有增長。顧客對 HOKA、On Running、New Balance 和 Nike 等品牌的新產品和選擇反應良好。美容在兩個橫幅上繼續表現相對較好，該類別較去年略有上升。在 Nordstrom Rack，我們來自知名品牌（包括 MAC、Too Faced 和 Clinique）的擴展產品表現良好。童裝和男裝的表現均優於平均水平。女裝較第一季度環比有所改善，但表現低於平均水平。

Within men's and women's apparel, we saw customers drawn to more dressed up and tailored looks with contemporary brands, including Veronica Beard, Vince and Theory. At Nordstrom Rack, sales of accessories, especially handbags, showed strength. As anticipated, designer remains under pressure. We made significant progress reducing our inventory position during the second quarter, and we'll continue to rightsize to the shift in consumer demand in this category. In order to improve inventory flow and margin health, we are focused on driving faster turns this year across both banners. During the second quarter, we made solid progress on this.

在男裝和女裝方面，我們發現顧客被 Veronica Beard、Vince 和 Theory 等當代品牌的更考究和定制的外觀所吸引。在 Nordstrom Rack，配飾尤其是手袋的銷售表現強勁。正如預期的那樣，設計師仍然面臨壓力。第二季度我們在減少庫存方面取得了重大進展，我們將繼續調整規模以適應該類別消費者需求的變化。為了改善庫存流量和利潤健康狀況，我們今年的重點是加快這兩個領域的周轉速度。第二季度，我們在這方面取得了紮實的進展。

Now turning to anniversary. As Erik described, the Anniversary Sale is a unique event that rewards and engages our loyal customers with brand-new products for many of their favorite brands, markdown during the sale before they are marked up to full price. Customers responded well to our curated assortment, which balanced both relevance and inspiration. This helped drive the very strong sell-through Erik highlighted earlier and puts us in a favorable inventory position as we entered the second half. We are pleased to see customers shop activewear and fall items, including dressed up looks and sweaters, boots and jackets. They also shop for baby gear from brands like Nuna.

現在轉向周年紀念日。正如 Erik 所描述的，週年紀念促銷是一項獨特的活動，旨在獎勵和吸引我們的忠實客戶，為他們喜愛的許多品牌提供全新產品，在促銷期間降價，然後再標價至全價。客戶對我們精心策劃的產品系列反應良好，平衡了相關性和靈感。這有助於推動埃里克之前強調的非常強勁的銷售量，並使我們在進入下半年時處於有利的庫存位置。我們很高興看到顧客購買運動服和秋季單品，包括盛裝造型、毛衣、靴子和夾克。他們還購買 Nuna 等品牌的嬰兒用品。

In addition, customers responded positively to our improved assortment of Nordstrom private brands, which are important to the event's success. Our teams did an outstanding job during anniversary, welcoming customers into our stores and at nordstrom.com and delivering a convenient and connected experience through events and personalized services. We were better prepared to start the sale this year given complete and timely delivery of product as a result of the continued productivity initiatives in our supply chain. Total anniversary event sales were 5% lower compared to last year, in line with overall trends given the ongoing softness in customer spending. This includes the 8 days that fell in the third quarter this year, whereas 1 day was included in last year's Q3 results. We are pleased by the strong sell-through on anniversary products, which exceeded our plans and put us in a favorable inventory position as we enter the second half of the year. We are committed to serving customers on their own terms, and we've integrated our physical and digital assets to create a seamless journey.

此外，客戶對我們改進的 Nordstrom 自有品牌品種做出了積極反應，這對於活動的成功至關重要。我們的團隊在周年紀念期間表現出色，歡迎顧客來到我們的商店和nordstrom.com，並通過活動和個性化服務提供便捷且互聯的體驗。由於我們供應鏈中持續的生產力舉措，我們已經為今年開始銷售做好了更充分的準備，完整、及時地交付了產品。鑑於客戶支出持續疲軟，週年紀念活動總銷售額比去年下降 5%，與整體趨勢一致。這包括今年第三季度的 8 天，而去年第三季度業績中包括 1 天。我們對周年紀念產品的強勁銷售感到高興，這超出了我們的計劃，並使我們在進入下半年時處於有利的庫存狀況。我們致力於按照客戶自己的方式為他們提供服務，並且我們整合了我們的實體資產和數字資產以創建無縫的旅程。

Digital sales accounted for over 60% of the overall event and over 40% of these digital sales were enabled by our stores through either buy online, pick up in store, store fulfill or ship to store. We had our highest hour of demand on nordstrom.com of all time during our early loyalty member access window of the sale. We continue to enhance our inventory flow across most of our categories with inventory turn improving slightly in the second quarter. For the second half, we are focused on managing with discipline by improving inventory health in both banners and will continue to drive for higher productivity. We are maintaining reserves against our buy plans, which enables us to respond in season to trends and customer demand.

數字銷售佔整個活動的 60% 以上，其中超過 40% 的數字銷售是由我們的商店通過在線購買、店內提貨、商店配送或送貨到商店實​​現的。在我們早期忠誠會員訪問銷售窗口期間，nordstrom.com 上的需求達到了有史以來最高的時段。我們繼續加強大多數類別的庫存流動，第二季度庫存周轉略有改善。下半年，我們的重點是通過改善兩個橫幅的庫存健康狀況來進行紀律管理，並將繼續提高生產力。我們根據購買計劃保留儲備，這使我們能夠及時響應趨勢和客戶需求。

At Nordstrom Rack, we made significant progress increasing strategic brand penetration, and we'll continue to improve our mix in the second half. Strategic brands have better productivity than other brands in terms of sell-through. They also create a point of differentiation with our customers because we know they want great brands at great prices.

在 Nordstrom Rack，我們在提高戰略品牌滲透率方面取得了重大進展，我們將在下半年繼續改善我們的產品組合。戰略品牌在銷售方面比其他品牌具有更好的生產力。他們還為我們的客戶創造了一個差異化點，因為我們知道他們想要以優惠的價格獲得偉大的品牌。

Turning to supply chain. Erik spoke earlier to the benefits our teams delivered from our supply chain optimization initiatives. Looking forward, we expect to deliver additional operational efficiencies by continuing our work in inventory productivity, returns processing and transportation, and ramping up RFID initiatives.

轉向供應鏈。埃里克早些時候談到了我們的團隊從供應鏈優化計劃中獲得的好處。展望未來，我們希望通過繼續在庫存生產力、退貨處理和運輸方面的工作以及加強 RFID 計劃來提高運營效率。

To wrap up, we're making solid progress on each of our 2023 priorities. We're confident in our ability to improve our profitability this year. There's more to accomplish ahead, and we're well positioned for the second half.

總而言之，我們在 2023 年的每一項優先事項上都取得了紮實的進展。我們對今年提高盈利能力的能力充滿信心。未來還有更多工作要做，我們已經為下半年做好了準備。

With that, I'd like to welcome Cathy to our call, and I'll now turn it over to her to discuss our financial results.

在此，我歡迎 Cathy 參加我們的電話會議，現在我將把會議交給她來討論我們的財務業績。

Thanks, Pete. I'm excited to be part of the Nordstrom team. I have tremendous respect for the company, brand and legacy of customer experience and service. I am honored to help Nordstrom drive profitable growth and long-term success. I look forward to reconnecting with those of you I already know and getting to know those of you I don't.

謝謝，皮特。我很高興成為 Nordstrom 團隊的一員。我非常尊重公司、品牌以及客戶體驗和服務的傳統。我很榮幸能夠幫助 Nordstrom 推動盈利增長和長期成功。我期待著與那些我已經認識的人重新建立聯繫，並結識那些我不認識的人。

Now I will expand on what Erik and Pete have already shared about our quarter. I'll start with our second quarter results and then discuss our outlook for the remainder of 2023. For the second quarter, we reported earnings per share of $0.84 compared to last year's earnings per share of $0.77. When excluding charges related to the wind down of Trunk Club, last year's adjusted earnings per share was $0.81. We are pleased with the year-over-year EPS increase despite the $330 million fewer sales. Net sales as well as gross merchandise value, or GMV, decreased 8% in Q2. Net sales included a negative impact of 275 basis points from the wind down of Canadian operations. They also reflect a negative impact of approximately 200 basis points from the timing shift of the anniversary sale with approximately 1 week falling into the third quarter this year compared to 1 day last year. Excluding the impact of these 2 items, net sales would have been down about 4% versus last year.

現在我將擴展埃里克和皮特已經分享的有關我們季度的內容。我將從第二季度的業績開始，然後討論我們對 2023 年剩餘時間的展望。第二季度，我們報告的每股收益為 0.84 美元，而去年的每股收益為 0.77 美元。排除與 Trunk Club 關閉相關的費用後，去年調整後的每股收益為 0.81 美元。儘管銷售額減少了 3.3 億美元，但我們對 EPS 同比增長感到滿意。第二季度淨銷售額和商品總價值 (GMV) 下降了 8%。淨銷售額包括加拿大業務縮減造成的 275 個基點的負面影響。它們還反映了周年紀念銷售時間變化帶來的大約 200 個基點的負面影響，今年第三季度大約有 1 週的時間，而去年只有 1 天。排除這兩項的影響，淨銷售額將比去年下降約 4%。

During the quarter, sales trends improved each month when excluding the impact of the anniversary timing shift and the improvement was most pronounced at Rack. Nordstrom banner sales and GMV each decreased 10% versus last year, with sales improving sequentially from the first quarter when year-over-year net sales decreased 11%. The wind down of Canadian operations included a negative impact on Nordstrom banner net sales of 400 basis points, and the anniversary timing shift had a negative impact of approximately 300 basis points. Nordstrom Rack sales decreased 4%, improving sequentially compared to a 12% year-over-year decrease in the first quarter. We estimate the decision to eliminate store fulfillment of Rack digital orders starting in the third quarter of 2022 had a negative impact to this year's Q2 sales of approximately 500 basis points.

在本季度，排除週年紀念時間變化的影響後，銷售趨勢每個月都有所改善，其中 Rack 的改善最為明顯。 Nordstrom 橫幅銷售額和 GMV 均較去年下降 10%，銷售額較第一季度環比有所改善，當時淨銷售額同比下降 11%。加拿大業務的縮減對 Nordstrom 旗下的淨銷售額產生了 400 個基點的負面影響，而周年紀念時間的轉變也產生了約 300 個基點的負面影響。 Nordstrom Rack 銷售額下降 4%，較第一季度同比下降 12% 有所改善。我們估計，從 2022 年第三季度開始取消 Rack 數字訂單商店履行的決定對今年第二季度的銷售額產生了約 500 個基點的負面影響。

Digital sales decreased 13% in the second quarter. This includes an estimated 500 basis point negative combined impact from eliminating store fulfillment of Rack digital orders in the third quarter last year and sunsetting Trunk Club in the second quarter of 2022. It also includes an estimated 300 basis points negative impact from the anniversary timing shift. Gross profit as a percentage of net sales decreased 20 basis points, primarily reflecting deleverage on lower sales, partially offset by lower buying and occupancy cost. Ending inventory decreased 18% versus last year compared to an 8% decrease in sales. Our inventory is better positioned as we move into the back half of the year, thanks to the strong sell-through during our anniversary sale.

第二季度數字銷售額下降 13%。這包括去年第三季度取消 Rack 數字訂單的商店履行和 2022 年第二季度取消 Trunk Club 帶來的估計 500 個基點的負面綜合影響。還包括週年紀念時間轉變帶來的估計 300 個基點的負面影響。毛利潤占淨銷售額的百分比下降了 20 個基點，主要反映了銷售額下降帶來的去槓桿化，但部分被購買和入住成本下降所抵消。期末庫存較去年下降 18%，而銷售額則下降 8%。由於週年促銷期間的強勁銷售，進入下半年，我們的庫存狀況更加良好。

Looking ahead, we will continue to benefit from improved inventory management routines and disciplines while meeting customer demand. SG&A as a percentage of net sales was flat to last year's second quarter, driven by improvements in variable costs from supply chain efficiency initiatives, which helped offset higher labor expenses and deleverage from lower sales. In addition, expenses in the second quarter this year benefited from a couple of items outside of our normal run rate, namely a gain on the sale of our real estate assets and lower carrier costs than previously expected. We are pleased with the momentum in our supply chain initiatives. And as Erik mentioned, this marks the fourth consecutive quarter where we have delivered over 100 basis points of improvement in our variable cost as a percentage of sales.

展望未來，我們將繼續受益於改進的庫存管理程序和紀律，同時滿足客戶需求。 SG&A 占淨銷售額的百分比與去年第二季度持平，這是由於供應鏈效率舉措改善了可變成本，這有助於抵消勞動力成本上升和銷售額下降帶來的去槓桿化。此外，今年第二季度的支出受益於我們正常運行率之外的幾個項目，即出售我們的房地產資產的收益以及低於先前預期的承運成本。我們對供應鏈計劃的勢頭感到高興。正如 Erik 提到的，這標誌著我們的可變成本佔銷售額的百分比連續第四個季度實現了超過 100 個基點的改善。

EBIT margin was 5.3% for the second quarter, up 20 basis points from last year's EBIT margin. After excluding charges in last year's second quarter related to the sunsetting of Trunk Club for comparison purposes, EBIT margin was flat to last year's adjusted margin of 5.3%, and again, despite lower sales this quarter. We continue to maintain a solid balance sheet and financial position, ending the second quarter with $1.7 billion in available liquidity and including the full $800 million available on our revolving line of credit.

第二季度息稅前利潤率為 5.3%，比去年同期上升 20 個基點。出於比較目的，排除去年第二季度與 Trunk Club 關閉相關的費用後，息稅前利潤率與去年調整後的 5.3% 持平，儘管本季度銷售額較低，但息稅前利潤率再次持平。我們繼續保持穩健的資產負債表和財務狀況，第二季度末可用流動資金為 17 億美元，其中包括我們的循環信貸額度中可用的全部 8 億美元。

Turning to our outlook for the rest of the year. I'll start by discussing the current environment and related assumptions underlying our guidance. We continue to see a cautious consumer, and it remains to be seen how changes in inflation and higher interest rates will affect discretionary consumer spending in the second half of the year, particularly during the holiday season. We saw sequential top line improvement in the second quarter. However, while it is early in the third quarter, sales trends have decelerated at both banners. We expect to make continued progress on our key priorities, which will help improve our profitability and mitigate inflationary cost pressures. Considering these factors, we are taking a cautious approach to planning we maintain our outlook for the full year despite better-than-expected results in the first half.

轉向我們對今年剩餘時間的展望。我將首先討論當前環境和我們指導背後的相關假設。我們仍然看到消費者持謹慎態度，通貨膨脹和利率上升的變化將如何影響下半年的可自由支配的消費者支出，特別是在假期期間，還有待觀察。我們看到第二季度的營收連續改善。然而，儘管現在還處於第三季度初期，但這兩個品牌的銷售趨勢均已放緩。我們預計在關鍵優先事項上不斷取得進展，這將有助於提高我們的盈利能力並減輕通脹成本壓力。考慮到這些因素，儘管上半年業績好於預期，但我們在規劃時仍採取謹慎態度，維持全年展望。

I'll highlight a few factors that shape our outlook for the rest of the year, 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 in the fourth quarter. Year-over-year sales comparisons will become more favorable in the second half of the year, and we continue to expect sequential top line improvement compared to the first half.

我將重點介紹影響我們今年剩餘時間前景的幾個因素，首先是收入。我們仍然預計收入將比2022 年下降4% 至6%。這一前景包括我們加拿大業務的縮減帶來的約2.5 個百分點的負面影響，該業務在2022 年的銷售額約為4 億美元。還包括約1.3 個百分點的負面影響。從 2023 財年第 53 週開始，我們預計第四季度的銷售額將增加約 2 億美元。下半年的同比銷售比較將變得更加有利，我們繼續預計營收將比上半年有所改善。

Two things benefit year-over-year comparisons in the third quarter. One, we will start to lap the impact of eliminating the store fulfillment of Rack digital orders. Second, the anniversary sale timing shift will positively impact third quarter sales by approximately 200 basis points. Offsetting the tailwinds are headwinds with respect to our credit card business. Our credit card revenues were up 10% in the first half of the year from higher revenue recognized in connection with our credit card partner agreement and with lower-than-expected credit card losses. That said, we have seen delinquencies rising gradually, and they are now above pre-pandemic levels, which could result in higher credit losses in the second half and into 2024.

有兩件事有利於第三季度的同比比較。第一，我們將開始研究取消 Rack 數字訂單的商店履行的影響。其次，週年紀念銷售時間的轉變將對第三季度的銷售產生約 200 個基點的積極影響。我們信用卡業務的逆風抵消了順風。上半年，我們的信用卡收入增長了 10%，原因是與我們的信用卡合作夥伴協議相關的收入增加以及信用卡損失低於預期。也就是說，我們看到拖欠率逐漸上升，目前已高於大流行前的水平，這可能會導致下半年和 2024 年的信貸損失上升。

Turning to EBIT, we continue to expect 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 in the second half from our focus on inventory productivity when compared to the elevated markdowns we took in 2022. We expect SG&A expense rate will be impacted by deleverage from lower sales given our sales trend outlook with partial offset from our ongoing supply chain optimization initiatives, although to a lesser extent, as time progresses.

談到息稅前利潤，我們繼續預計全年調整後息稅前利潤率約為3.7% 至4.2%，而2022 年為3.3%。我們的預測假設調整後息稅前利潤率擴張將主要由下半年毛利率的改善推動。與我們在2022 年採取的大幅降價相比，我們重點關注庫存生產率。考慮到我們的銷售趨勢前景，我們預計SG&A 費用率將受到銷售下降的去槓桿化的影響，部分抵消了我們正在進行的供應鏈優化舉措，儘管程度較小，隨著時間的推移。

We also maintain our outlook for adjusted EPS for the full year. Our GAAP earnings per share outlook remains $0.60 to $1 for the full year, which includes the Canadian wind-down charges and related tax impact. Excluding the impact of these charges, we continue to expect adjusted earnings per share of $1.80 to $2.20 for the full year.

我們還維持全年調整後每股收益的預期。我們的全年 GAAP 每股收益展望仍為 0.60 至 1 美元，其中包括加拿大的逐步終止費用和相關稅收影響。排除這些費用的影響，我們繼續預計全年調整後每股收益為 1.80 美元至 2.20 美元。

Shifting to capital allocation. Our priorities remain the same. The first 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. 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 and continue to target a leverage ratio below 2.5x.

轉向資本配置。我們的優先事項保持不變。首先是投資業務以更好地服務客戶並支持長期增長。我們繼續計劃將資本支出占淨銷售額的 3% 至 4%。我們的第二要務是減少槓桿。我們仍然致力於通過盈利改善和債務削減相結合來實現投資級信用評級，並繼續將槓桿率設定為低於 2.5 倍。

Our third priority is returning cash to shareholders. Last week, our Board of Directors declared a quarterly cash dividend of $0.19 per share. We are pleased with our solid results in the second quarter and progress on our 2023 priorities of improving Nordstrom Rack, increasing inventory productivity and optimizing our supply chain capabilities. We continue to focus on driving profitable growth. We remain confident in our ability to navigate through the near-term uncertain environment and deliver shareholder value over the long term.

我們的第三個優先事項是向股東返還現金。上週，我們的董事會宣布季度現金股息為每股 0.19 美元。我們對第二季度的穩健業績以及 2023 年改善 Nordstrom Rack、提高庫存生產力和優化供應鏈能力等優先事項的進展感到滿意。我們繼續專注於推動盈利增長。我們對度過近期不確定環境並長期為股東創造價值的能力充滿信心。

With that, Sara, we're ready for questions.

薩拉，我們準備好回答問題了。

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

謝謝凱茜。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行動上。我們現在進入問答環節。

(Operator Instructions) And the first question comes from the line of Noah Zatzkin with KeyBanc Capital Markets.

（操作員說明）第一個問題來自 KeyBanc Capital Markets 的 Noah Zatzkin。

This is Ashley on for Noah. Just first with the guidance and stronger improvement in Rack relative to full price this quarter, how should we be thinking about the pace of both banners in the back half? And then I have a follow-up.

這是諾亞的阿什利。首先，隨著本季度 Rack 相對於全價的指導和更強勁的改進，我們應該如何考慮後半段兩個旗幟的步伐？然後我有一個後續行動。

Ashley, it's Cathy. I'm sorry, can you repeat that? I didn't quite catch the back half of your question?

艾什莉，我是凱茜。抱歉，您能再說一遍嗎？我沒聽清你問題的後半部分？

Yes. So with the stronger improvement in Rack relative to full price, just how should we be thinking about the pace at both banners in the back half of the year?

是的。因此，隨著 Rack 相對於全價的強勁改善，我們應該如何考慮下半年這兩個旗幟的步伐？

Yes. Thank you. Ashley. So as we -- first off, just to remind us, we had a good, solid second quarter. We're really pleased with the results that we're delivering, and we did reiterate our full year guidance for the back half. So thinking through the sequential improvement we've seen already through the first half of the year, we would expect that to continue sequential improvement through the back half. So particularly Q4, we'll -- you'll see the benefit of that 53rd week. So think about that. And then it's going to be a little bit offset by the loss of the Canadian operations. And then obviously, we have a little bit better, easier comp in the fourth quarter. And then Q3, I would think of it as kind of in between Q2 and Q4.

是的。謝謝。阿什利。因此，首先，提醒我們，我們有一個良好、穩定的第二季度。我們對所交付的結果感到非常滿意，並且我們確實重申了下半年的全年指導。因此，考慮到我們在上半年已經看到的連續改善，我們預計下半年將繼續連續改善。因此，特別是第四季度，我們將——您將看到第 53 週的好處。所以想一想。然後，加拿大業務的損失將稍微抵消這一損失。顯然，我們在第四季度有更好、更輕鬆的表現。然後是第三季度，我認為它介於第二季度和第四季度之間。

Okay. Great. And then just on inventory, could you provide us with some additional color on the current mix? And then maybe where you think you are in your efforts to rightsize designer?

好的。偉大的。然後就庫存而言，您能為我們提供當前組合的一些額外顏色嗎？那麼您認為您在調整設計師規模方面的努力處於什麼階段？

Maybe -- Ashley, this is Cathy. I'll start, and then I'll ask Pete to comment on designer a little bit. So we're really pleased that we've continued to drive inventory productivity. It's 1 of our top 3 priorities this year, as you guys know, and the team has done a terrific job. Inventory is down almost 18% on sales down 8%. Units are down even more than that. And so we're really pleased that we're going into the back half of the year in a healthy inventory position. It allows us to really chase after the consumer demand and make sure that we can meet them. And then on designer, maybe Pete can answer a little bit there.

也許——阿什利，這是凱茜。我會開始，然後我會請皮特對設計師進行一些評論。因此，我們非常高興我們能夠繼續提高庫存生產力。正如你們所知，這是我們今年的三大優先事項之一，而且團隊做得非常出色。庫存下降近 18%，銷售額下降 8%。單位下降幅度甚至更大。因此，我們非常高興今年下半年我們的庫存狀況良好。它使我們能夠真正追逐消費者的需求並確保我們能夠滿足他們。然後關於設計師，也許皮特可以回答一點。

Yes. On designer, as you know, if you've been listening to the calls over time, we've had really good growth in the designer category, and we've invested against that. And it changed rather abruptly about a year ago. And so we found ourselves with more inventory, more on-orders than we would have liked, given the sales trends. And we have yet to work through that. It takes some time, this doesn't turn as fast as other categories.

是的。在設計師方面，如您所知，如果您一直在傾聽這些呼聲，我們在設計師類別中確實取得了良好的增長，並且我們對此進行了投資。大約一年前，情況發生了相當突然的變化。因此，考慮到銷售趨勢，我們發現自己的庫存和訂單量都超出了我們的預期。我們還沒有解決這個問題。這需要一些時間，這不像其他類別那麼快。

A lot of that product is continuative product. And so it's not as inherently perishable, but it is aging at the same time, and we do have more week forward covered than we need. So it takes time to work through that, and we're working through it with our vendor partners on the design side.

很多產品都是連續產品。因此，它本質上並不容易腐爛，但它同時也在老化，而且我們確實有比我們需要的更多的未來一周的時間。因此，解決這個問題需要時間，我們正在與設計方面的供應商合作夥伴一起解決這個問題。

Next is from Brooke Roach with Goldman Sachs.

接下來是高盛的布魯克·羅奇 (Brooke Roach)。

I was hoping you could provide some more context on the drivers of the Rack performance during the quarter. You mentioned that trends performed better each month of the year, but you've also seen a little bit of a recent deceleration. How did traffic ticket and conversion trend throughout the quarter and into the beginning period of back-to-school relative to your expectations? And as you look ahead, can you contextualize the most important drivers of Rack performance, do you expect through the back-to-school and holiday season?

我希望您能夠提供有關本季度機架性能驅動因素的更多背景信息。您提到趨勢在一年中的每個月都表現得更好，但您也看到了最近的一些減速。與您的預期相比，整個季度以及返校初期的客流量和轉化趨勢如何？當您展望未來時，您能否了解機架性能最重要的驅動因素，以及您對返校和假期的預期？

Brooke, this is Erik. Yes, we're really pleased with our -- the trend of our Rack performance. So it's in a steady upward trajectory throughout this year. And as you know, really, the foundation of our focus has been great brands at great prices. We know the reason most customers come to Nordstrom Rack is to find the great brands they love at terrific prices. And so we've been very intentional in devoting more of our inventory to these strategic brands. And as we've increased that proportion, we've seen our business get better. And I know it sounds simple, but it's -- that has been our focus and it is paying off for us. So we feel really good about our inventories there that we're in a position to be more aggressive and reactive to what we're seeing from customers. But again, the overarching strategy is to put more of those dollars into these strategic brands. So that's what we mainly look at.

布魯克，這是埃里克。是的，我們對機架性能的趨勢感到非常滿意。因此，今年它一直處於穩定上升的軌道。正如您所知，我們的重點實際上是以優惠的價格提供優質品牌。我們知道大多數顧客來到 Nordstrom Rack 的原因是為了以優惠的價格找到他們喜愛的優質品牌。因此，我們非常有意識地將更多庫存投入到這些戰略品牌上。隨著這一比例的增加，我們的業務也得到了改善。我知道這聽起來很簡單，但這一直是我們的重點，而且它正在為我們帶來回報。因此，我們對那裡的庫存感到非常滿意，因此我們能夠對客戶提供的信息更加積極主動地做出反應。但同樣，總體戰略是將更多資金投入到這些戰略品牌中。所以我們主要看這個。

And again, as we've done that, we've seen our business get better. To your question on traffic conversion ticket. Traffic has both -- across both banners has been softer. What's -- what we've seen strength in is in conversion and spend per customer. So that's a good reflection of the content we have and the customer experience we're providing.

再次，當我們這樣做時，我們看到我們的業務變得更好。關於您關於流量轉換票的問題。兩面旗幟上的交通都比較疲軟。我們看到的優勢在於轉化率和每位客戶的支出。因此，這很好地反映了我們擁有的內容和我們提供的客戶體驗。

Great. And if I could just ask one second question. You spoke in the prepared remarks about rising headwinds in credit as a result of delinquencies. Can you provide a bit more detail on what you're seeing there and your expectation for credit contribution into the back half?

偉大的。如果我能問第二個問題就好了。您在準備好的講話中談到了由於拖欠而導致的信貸逆風加劇。您能否提供更多有關您所看到的情況以及您對後半部分信用貢獻的期望的更多詳細信息？

So first, bigger picture, our loyalty program and our credit card customers are really an important part of our business. They are typically our most engaged and most loyal customers. So we always think of that cohort in that light. We do typically have a little higher quality credit consumer as well in our credit customer, which means they're going to be a little bit more resilient. What you did hear us say, and you'll see it in the filings that are -- we're seeing good strength in credit card revenues through the first half of the year. But as we mentioned in the prepared remarks, we've seen delinquencies slowly rising throughout the course of the year, and they are now at a kind of around pre-pandemic levels. That just -- those can be a precursor for higher credit losses in the future. And so we're going to be mindful there and continue to watch it. And we do watch the portfolio closely. But as we said, I think our consumer tends to be a little bit more resilient, and so we'll continue to watch that.

首先，從更大的角度來看，我們的忠誠度計劃和信用卡客戶確實是我們業務的重要組成部分。他們通常是我們最積極、最忠誠的客戶。所以我們總是從這個角度來考慮這個群體。我們的信貸客戶中通常也有質量更高的信貸消費者，這意味著他們的彈性會更強一些。你確實聽到了我們所說的話，你會在文件中看到它——我們看到今年上半年信用卡收入的強勁勢頭。但正如我們在準備好的發言中提到的那樣，我們看到拖欠率在這一年中緩慢上升，目前大約處於大流行前的水平。這可能是未來更高信貸損失的先兆。因此，我們將對此保持警惕並繼續關注。我們確實密切關注投資組合。但正如我們所說，我認為我們的消費者往往更具彈性，因此我們將繼續關注這一點。

And next is from Dana Telsey with the Telsey Advisory Group.

接下來是來自 Telsey Advisory Group 的 Dana Telsey。

Welcome Cathy. Just following up on the credit for a moment. When you go back to the great financial crisis 2008, 2009, any parallels to learn of what happened then and what you're seeing now? And then following up on the Rack business and the new stores that you're opening this year, how is new store productivity ramping versus what you may have expected or versus previous? And then just lastly, seeing what happening currently in the current environment. Any adjustments to plans for holiday from what you've typically done in the past?

歡迎凱茜。只是暫時跟進信用情況。當你回顧 2008 年、2009 年的金融危機時，當時發生的事情和你現在所看到的情況有什麼相似之處嗎？然後跟進機架業務和您今年開設的新店，與您的預期或之前相比，新店的生產力如何提升？最後，看看當前環境中正在發生什麼。您的假期計劃與過去通常所做的相比有何調整？

Dana, first off, great to see you or hear you again. So I appreciate that. Maybe I'll start with credit. And if Erik wants to talk a little bit about Rack productivity or I can, and then maybe I'll finish up with Pete on holiday and how we're doing that. So with regards to credit, you made me smile when you asked the question because I lived through the financial crisis in a homebuilder. And to my very first question, to the team was tell me about how we performed in '08, '09 and '10 as well. So it made me smile that that's where you went as well. And I would tell you, first off, for a lot of reasons, the business is a little different now than then, we have a different arrangement with our credit card partner. We have a great partner there. And so it is a little different arrangement. We continue to have a very strong credit quality in our portfolio as well.

達納，首先，很高興再次見到你或聽到你的聲音。所以我很欣賞這一點。也許我會從信用開始。如果 Erik 想談談 Rack 生產力，或者我可以，然後也許我會和 Pete 一起度假，以及我們是如何做到這一點的。因此，關於信貸，當你問這個問題時，我笑了，因為我在一家住宅建築商那裡經歷了金融危機。我向團隊提出的第一個問題是告訴我我們在 08 年、09 年和 10 年的表現如何。所以你也去了那裡，這讓我笑了。我想告訴你，首先，由於很多原因，現在的業務與那時有所不同，我們與信用卡合作夥伴有不同的安排。我們在那裡有一個很棒的合作夥伴。所以這是一個有點不同的安排。我們的投資組合也繼續擁有非常強大的信用質量。

So for a lot of reasons, although our credit losses aren't projected to be anywhere near where they were in the financial crisis, it's a different book of business and a different arrangement. So we feel very good about where we are and kind of how we're projecting it. They have pretty good insights because you do see the delinquencies coming. So feel like we're in a good place there.

因此，由於多種原因，儘管我們的信貸損失預計不會接近金融危機時的水平，但這是不同的業務和不同的安排。因此，我們對自己所處的位置以及我們的規劃方式感到非常滿意。他們有很好的洞察力，因為你確實看到了拖欠行為的發生。所以感覺我們處在一個很好的位置。

And again, I'll go back to the big picture, and that is they're a really important part of our customer set. We -- they typically are most engaged customers, so we're really pleased with that. Maybe I'll turn it over to Erik on Rack productivity of new stores and then Pete on holiday.

再次，我會回到大局，那就是他們是我們客戶群中非常重要的一部分。我們——他們通常是最活躍的客戶，所以我們對此感到非常滿意。也許我會把新店的貨架生產力交給埃里克，然後度假的皮特。

Dana, we're really pleased with our Rack new store performance and I'll just center you on the importance of Rack new stores, first and foremost, it's a great return on our investment. And Rack new stores, the returns we're getting out of those is very strong, well ahead of the cost of capital, and we're encouraged by that.

Dana，我們對 Rack 新店的表現非常滿意，我只想向您介紹 Rack 新店的重要性，首先，這是我們投資的巨大回報。開設新店，我們從中獲得的回報非常強勁，遠遠超過資本成本，我們對此感到鼓舞。

Dana, it's Pete. With regards to holiday, in terms of changes from the past, I think the biggest thing is coming out of anniversary sales clean and having efficient inventory is super helpful. And we obviously have our plan, and it's to continue to focus on the gifting target, but we also have some dry powder so that whatever we're able to learn here in the first couple of months of fall, we could invest back into holiday in terms of replenishment and a lot of those more kind of staple items that can help us a lot during the holiday season. So I think we feel really good about the new things we're able to invest in and how we're able to activate and energize the store and the shopping experience with making sure that we've got the proper amount of money we can properly invest into the business for that time. So we feel good about it.

達納，是皮特。關於假期，就與過去的變化而言，我認為最大的事情是周年紀念銷售乾淨利落，擁有高效的庫存非常有幫助。我們顯然有我們的計劃，那就是繼續專注於送禮目標，但我們也有一些乾粉，這樣無論我們在秋季的前幾個月能在這裡學到什麼，我們都可以投資回假期在補貨方面以及許多更多類型的主食方面，它們可以在假期期間為我們提供很多幫助。因此，我認為我們對能夠投資的新事物以及我們如何能夠激活和激發商店和購物體驗感到非常滿意，同時確保我們擁有適當數量的資金投資當時的業務。所以我們對此感覺良好。

And the next question is from Edward Yruma with Piper Sandler.

下一個問題是愛德華·尤魯瑪和派珀·桑德勒提出的。

I guess first on gross margin. I was wondering if you could unpack a little bit and kind of break out the impact of deleverage on lower sales versus lower markdowns versus last year? And how we should think about markdowns given the improved inventory level going forward? And then just as a follow-up, obviously, lots of discussion about shrink. We all saw the video what happened in Topanga. Just trying to understand how you see [shrinks] play out for the remainder of the year?

我想首先是毛利率。我想知道您是否可以稍微解釋一下，與去年相比，去槓桿化對銷售額下降和降價下降的影響？鑑於未來庫存水平的改善，我們應該如何考慮降價？顯然，作為後續行動，有很多關於收縮的討論。我們都看過托潘加發生的視頻。只是想了解您如何看待[收縮]在今年剩餘時間內的表現？

Ed. So good to hear you again and look forward to seeing you live at some point. On gross margin, I'll impact that a little bit. And then maybe I'll ask Erik to comment on shrink and theft as I know it's been a topic with many retailers. But starting with gross margin to your question on deleveraging of sales, that absolutely has an impact, as you think about for the quarter, always does. Overall, though, with our -- the continued work of the team, we were down gross margin only 20 basis points on the deleveraging of the sales, partially offset by a little bit of lower building and occupancy costs, so -- or buying and occupancy cost. So generally, I would feel really good about gross margin. As we think about going forward, though, for gross margin, Q3, you're going to see -- continue to see that the supply chain productivity for EBIT, which obviously don't show up in gross margin as much. A little bit of sales deleverage.

埃德。很高興再次聽到你的聲音，並期待在某個時候見到你。在毛利率方面，我會稍微影響一下。然後也許我會請埃里克對收縮和盜竊發表評論，因為我知道這是許多零售商的一個話題。但從毛利率開始，到你關於銷售去槓桿化的問題，這絕對會產生影響，正如你對本季度的思考一樣，總是會產生影響。不過，總體而言，在我們團隊的持續努力下，由於銷售去槓桿化，我們的毛利率僅下降了 20 個基點，部分被建築和占用成本的降低所抵消，因此，或者購買和佔用成本。所以總的來說，我對毛利率感覺非常好。不過，當我們考慮未來的毛利率時，第三季度，您將繼續看到息稅前利潤的供應鏈生產力，這顯然不會在毛利率中體現得那麼多。一點點銷售去槓桿化。

But then going into the back quarter or the fourth quarter, last year, remember, we had a lot of inventory that we bought through and marked down. We're not going to see that same level or not planning to this year, given the quality or the health of our inventory going into the back half. So I think, overall, we feel really good about being able to focus on the things we can control, no matter what the consumer environment provides. Maybe, Erik, you could talk a little bit about shrink or theft.

但是，進入去年的後季度或第四季度，請記住，我們有大量庫存，我們購買並降價了。考慮到下半年我們庫存的質量或健康狀況，我們今年不會看到同樣的水平或不計劃這樣做。所以我認為，總的來說，無論消費者環境如何，我們都對能夠專注於我們可以控制的事情感到非常高興。埃里克，也許你可以談談心理諮詢或盜竊。

Yes, sure. Let me start with just, the safety of employees and customers is always a top priority. Certainly, what happened in our Topanga store is disturbing to all of us. But the loss is a concern. Losses from theft are at historical highs. And I'd say we find it unacceptable and needs to be addressed. That being said, while it's unacceptable, it is within our plans. We have not seen continuing rising of shrinkage that has exceeded what we've planned. So it's in line with how we lead out this year.

是的，當然。首先，員工和客戶的安全始終是重中之重。當然，我們 Topanga 商店發生的事情讓我們所有人都感到不安。但損失令人擔憂。盜竊造成的損失處於歷史高位。我想說，我們發現這是不可接受的，需要解決。話雖這麼說，雖然這是不可接受的，但它在我們的計劃之內。我們還沒有看到收縮率持續上升超出我們的計劃。因此，這與我們今年的領導方式是一致的。

But the drag on earnings, just from a financial performance, that needs to come down. And we've done a lot of things, and we're looking at everything we can do to make our stores safe and secure, first of all that they can be, but also to address the loss. And there's things within our control that we can invest in, but also involves partnering with local jurisdictions, law enforcement. I think the legislation is part of the mix to here that all industry needs to come to some better solutions on.

但僅從財務表現來看，對盈利的拖累需要下降。我們已經做了很多事情，我們正在考慮採取一切措施來確保我們的商店安全可靠，首先是它們可以做到的，而且還要解決損失問題。我們可以投資一些在我們控制範圍內的事情，但也涉及與當地司法管轄區和執法部門合作。我認為立法是所有行業都需要找到更好解決方案的一部分。

Next is from Blake Anderson with Jefferies.

接下來是布萊克·安德森 (Blake Anderson) 和杰弗里斯 (Jefferies) 的報導。

I wanted to start with Nordstrom Rack. Can you talk about kind of what inning are we now for getting the top brands back to normal in terms of the mix? I think you're pretty close, but just wanted to ask about that? And then just more broadly on newness, how did that trend throughout the quarter? And how are you planning on newness for the back half?

我想從 Nordstrom Rack 開始。您能否談談我們現在要如何讓頂級品牌在組合方面恢復正常？我認為你很接近，但只是想問一下？然後，從更廣泛的角度來看，整個季度的趨勢如何？您打算如何為後半部分增添新意？

Yes. This is Pete. In terms of the Rack top brands and where we are in that journey. It's a little hard to say, but we've made considerable progress. And I think if you go back to our original intentions of how to think about this, we're getting pretty close. It feels like by the end of this year, we should have a really I think a good picture of where this settles out. And I don't think we're particularly far from that right now. And certainly, our [buys] indicated. We're talking about it relative to the sales our future on-order, I think, really represents where we think we should be. So we're fairly close. I don't know. Maybe we're in the bottom of the 6 that are top of the seventh I don't know, in terms of innings, if that's the analogy. And I'm sorry, the second question was about what? Just newness in the Rack stores?

是的。這是皮特。就 Rack 頂級品牌以及我們在這一旅程中所處的位置而言。這有點難說，但我們已經取得了相當大的進步。我認為，如果你回到我們思考這個問題的初衷，我們已經非常接近了。感覺到今年年底，我們應該對這個問題的解決方案有一個很好的了解。我認為我們現在離這個目標並不遠。當然，我們的[購買]表明了這一點。我認為，我們正在談論與我們未來的訂單銷售相關的問題，這確實代表了我們認為應該達到的水平。所以我們已經相當接近了。我不知道。也許我們在六局中排名墊底，在第七局中排名靠前，我不知道就局數而言，是否是這樣的類比。抱歉，第二個問題是關於什麼？只是 Rack 商店裡的新鮮事嗎？

Yes, that's right. I wanted to ask I guess more about Rack in terms of (inaudible).

恩，那就對了。我想問一下我對 Rack 的更多猜測（聽不清）。

Yes. We talk a lot about inventory turns, and there's really 2 reasons for that. One of them is inventory -- faster inventory turns, the leading indicator of margin health, means you're probably selling through pretty well. You don't have markdowns. But particularly in the Rack business and the Nordstrom banner, too, the flow really matters. And if we can really even out our flow and have that stability and predictability. It gives us a lot of agility down the line to be able to respond. And your customers, particularly in the Rack, they like to come in often and see what's new and what's going on there. So a big part of our turn agenda is around flow and that impacts the newness. So we're -- I think probably like a lot of retailers are hearing from the newness has always been a key driver for us in terms of what drives top line.

是的。我們經常談論庫存周轉率，這實際上有兩個原因。其中之一是庫存——更快的庫存周轉率是利潤健康狀況的主要指標，意味著你的銷售情況可能相當不錯。你沒有降價。但特別是在 Rack 業務和 Nordstrom 旗下，流量確實很重要。如果我們真的能夠平衡我們的流程並具有穩定性和可預測性。它使我們能夠非常靈活地做出響應。而您的客戶，尤其是機架中的客戶，他們喜歡經常進來看看有什麼新鮮事以及那裡發生了什麼。因此，我們的回合議程的很大一部分是圍繞流程，這會影響新穎性。所以我們——我想可能就像很多零售商都聽到的那樣，新穎性一直是我們收入增長的關鍵驅動力。

That's helpful. And then I wanted to ask on the quarter-to-date traffic decline. Can you give any more detail on maybe what you think is driving that in terms of any type of income cohort? Or how much is it -- I know you talked about designer remains under pressure. Any other commentary you could provide would be helpful.

這很有幫助。然後我想詢問本季度至今的流量下降情況。您能否提供更多詳細信息，說明您認為在任何類型的收入群體中推動這一趨勢的因素是什麼？或者是多少——我知道你談到的設計師仍然面臨著壓力。您可以提供的任何其他評論都會有所幫助。

Yes, Blake, maybe I'll give it a try. So traffic, as Erik mentioned, traffic trends have remained soft. We're seeing sales made up obviously with higher conversion and higher selling price than we've seen versus last year. On an income cohort basis, we do see softness across the income cohorts, but the higher income cohorts are performing better than obviously the lower. I guess that seems pretty obvious when I say it out loud. But we see that in the data as well. So the good news is we tend to have a little higher income cohort in the Nordstrom banner, and those are performing well. So I think that's generally what's been driving the traffic trend. In the buy banner, though, earlier in the quarter was a little softer, and then we did see some strength. But again, we'll continue to think about where we're going in the back half, and we'll focus on the things we can control and hopefully have a great assortment for our customers to keep coming in.

是的，布萊克，也許我會嘗試一下。因此，正如埃里克提到的，流量趨勢仍然疲軟。與去年相比，我們看到銷售額明顯由更高的轉化率和更高的售價組成。在收入群體的基礎上，我們確實看到收入群體的疲軟，但高收入群體的表現明顯好於低收入群體。我想當我大聲說出來時，這似乎很明顯。但我們也在數據中看到了這一點。因此，好消息是 Nordstrom 旗下的收入群體往往較高，而且表現良好。所以我認為這通常是推動流量趨勢的因素。不過，在本季度早些時候，買入旗幟有點疲軟，然後我們確實看到了一些力量。但同樣，我們將繼續思考下半年的發展方向，我們將專注於我們可以控制的事情，並希望為我們的客戶提供豐富的產品組合以繼續進來。

And if I could squeeze in 1 more. Maybe, Cathy, if you want to take a shot at this and welcome. On can you help us at all in terms of how to think about Q3 versus Q4 EPS? Or maybe just a little more commentary on the margins.

如果我能再擠進1個就好了。也許，凱茜，如果你想嘗試一下，歡迎。您能否幫助我們了解如何看待第三季度與第四季度的每股收益？或者也許只是在邊緣添加一些評論。

Yes. Sure, I'm happy to. And then -- Blake, always happy to do that in a follow-up as well. But thinking about Q3 versus Q4. So top line has got a little bit of noise moving through. Obviously, still a sequential improvement, which I talked about earlier. As you think about from Q1 to Q2, we'd expect Q3 and then the Q4 continued sequential improvement. That's also coming off of last year a little bit easier comps. Q3 and then Q4 was the easier comp. So that's the first thing top line. Second thing is we have the 53rd week in the fourth quarter. So think about those as you think about the shape of the quarter.

是的。當然，我很樂意。然後——布萊克，也總是很樂意在後續行動中這樣做。但考慮一下第三季度和第四季度。因此，頂線已經受到了一些噪音的影響。顯然，這仍然是一個連續的改進，我之前談到過。當您考慮從第一季度到第二季度時，我們預計第三季度和第四季度將繼續連續改善。這也比去年的比賽更容易一些。 Q3 和 Q4 是更容易的比賽。這是第一件事。第二件事是第四季度的第 53 週。因此，當您考慮四分之一的形狀時，請考慮這些。

On an EBIT or EPS and subsequently, on a profitability level. We're going to have continued supply chain productivity continuing in the back half of the year. It will start to moderate a little bit. We've been seeing the 4 quarters of over 100 basis points of improvement, so you'll start to see that moderate a little bit in the quarters going forward. But I think probably most significantly is in the fourth quarter, you're going to see the lack of markdown to the extent we had last year. So that will help the profile of profitability into the fourth quarter.

息稅前利潤或每股收益，以及隨後的盈利水平。今年下半年我們將繼續保持供應鏈生產力。它將開始稍微緩和一些。我們已經看到 4 個季度的改善超過 100 個基點，因此在接下來的幾個季度中您將開始看到這種情況有所緩和。但我認為最重要的可能是在第四季度，你會看到我們沒有像去年那樣降價。因此，這將有助於第四季度的盈利能力。

Next is from Oliver Chen with TD Cowen.

接下來是 Oliver Chen 和 TD Cowen 的報導。

Regarding e-commerce, what's your path forward in terms of resuming growth there? And what's assumed for the back half in terms of guidance. And as we think about women's merchandise at large at both banners, what are your thoughts on the main issues? And also how you're doing with the younger customer as well within women's apparel.

關於電子商務，您在恢復增長方面有何前進道路？以及後半部分在指導方面的假設。當我們思考這兩個品牌的女性商品時，您對主要問題有何看法？以及您在女裝領域如何對待年輕顧客。

Oliver, it's Erik. I'll start on the digital one and Cathy can join in and then Pete can take the one merchandising question. As you know with us, we don't really get hung up on channel splits. It's -- we look at our business by banner. We've invested a lot over the years to have a seamless experience and really be where the customer wants us to be. And you add to it that economically we get the same profitability -- roughly the same profitability of nordstrom.com sale that we do or Nordstrom store sale. So we always got to -- start with the customer experience as a real focus on the channel experience.

奧利弗，這是埃里克。我將從數字問題開始，凱西可以加入，然後皮特可以回答一個銷售問題。正如您所知道的，我們並不真正沉迷於渠道分裂。我們以旗幟來看待我們的業務。多年來，我們投入了大量資金來獲得無縫體驗，並真正滿足客戶的需求。此外，從經濟角度來看，我們獲得了相同的盈利能力——與我們的 Nordstrom.com 銷售或 Nordstrom 商店銷售的盈利能力大致相同。因此，我們始終必須從客戶體驗開始，真正關注渠道體驗。

That being said, I think this year, you're seeing out of us and I think others too, that there is a return to stores. Stores have relatively performed well. With us, there's some added noise in our digital sales of -- and the comparisons against last year. If you remember, last year, we turned store fulfilled from our rack.com that had some softness, Trunk Club sunsetting, there's some noise in those numbers there. That being said, longer term, we think Nordstrom.com is a growth vehicle for us. We think Rack stores are the big growth vehicle for -- in the Rack banner. But in the Nordstrom banner, we think that the digital channel presents a lot of opportunity for us. It is leveraging our physical assets. So we see continued making investments in particular things around selection that we can continue to bring our customers the breadth of selection that they want from us.

話雖這麼說，我認為今年，你會從我們這裡看到，我想其他人也看到，商店正在回歸。實體店的表現相對較好。對於我們來說，我們的數字銷售以及與去年的比較有一些額外的噪音。如果你還記得，去年，我們從rack.com開始實現了商店的滿足，該網站有一些軟性，Trunk Club的日落，這些數字中有一些噪音。話雖如此，從長遠來看，我們認為 Nordstrom.com 是我們的增長工具。我們認為 Rack 商店是 Rack 旗幟下的重要增長工具。但在諾德斯特龍旗下，我們認為數字渠道為我們提供了很多機會。它正在利用我們的實物資產。因此，我們看到繼續在選擇方面進行投資，我們可以繼續為客戶提供他們想要從我們這裡得到的廣泛選擇。

Relative to the women's apparel, we make good progress there, and it feels like a broken record probably. A lot of that has to do with just having our inventory levels to be in the right spot. We've had good success and we learned a lot through Anniversary Sale, which is a huge advantage for us being able to get that kind of read on what's going on and how to be able to project a little bit what's going to happen in fall.

相對於女裝，我們在這方面取得了良好的進展，感覺可能像是打破了記錄。這在很大程度上與我們的庫存水平處於正確的位置有關。我們取得了巨大的成功，並且通過週年紀念促銷學到了很多東西，這對我們來說是一個巨大的優勢，我們能夠了解正在發生的事情以及如何能夠預測秋季將會發生的事情。

But the dressed up looks for us really across the board in men's and women's has been good. But I think about women's like selling a third piece, so it's a jacket or it's a sweater. That business has been really strong. I think particularly in the contemporary types of categories, if you look at that price level and with those types of brands, we've had a good -- really good solid business, and we feel great about that. We feel like we're on a positive trajectory with women's apparel.

但對於我們來說，男裝和女裝的著裝確實非常好。但我認為女裝就像賣第三件衣服，所以它是一件夾克或一件毛衣。那項業務確實非常強勁。我認為，特別是在當代類型的類別中，如果你看看價格水平和這些類型的品牌，我們已經有了很好的、非常好的、堅實的業務，我們對此感覺很好。我們覺得女裝市場正處於積極的發展軌道上。

The other thing I'd say about women's apparel and the Rack, it's a disproportionately important category there. And that's another place where we just -- we have a lot more efficiency with our inventory. We're focusing on those strategic brands, you might make up a much higher percentage of our inventory ownership and so that inventory is working for us better. So if we can continue to smooth up the flow and respond to the newness that goes with that, be opportunistic in the Rack, in particular, we're in good shape.

關於女裝和 Rack，我要說的另一件事是，它是一個極其重要的類別。這是我們的庫存效率大大提高的另一個地方。我們專注於這些戰略品牌，您可能會在我們的庫存所有權中佔據更高的比例，因此庫存對我們來說會更好。因此，如果我們能夠繼續理順流程並應對隨之而來的新鮮事物，特別是在機架中抓住機會，我們就處於良好狀態。

You mentioned the younger customer. I mean it feels like that's a bit of an evergreen opportunity. We need to do better with the younger customer and we have plans to do that. I think our own label programs are going to be a big part of that. I wish we could flip the switch and change that overnight. But as you know, these things take a little while. But I like where our plans are with that and what we're trying to accomplish and how that's going to appeal to young customer, both with style and price. But I think that's a good opportunity for us. And then in '24, we should be able to see improvements to that young customer business that will be accretive to our total women's business.

你提到了年輕的顧客。我的意思是，感覺這是一個常青的機會。我們需要更好地對待年輕客戶，我們已經計劃這樣做。我認為我們自己的標籤計劃將成為其中的重要組成部分。我希望我們能打開開關並在一夜之間改變這一點。但如您所知，這些事情需要一些時間。但我喜歡我們的計劃，我們正在努力實現的目標，以及如何通過風格和價格吸引年輕客戶。但我認為這對我們來說是一個很好的機會。然後在 24 年，我們應該能夠看到年輕客戶業務的改善，這將增加我們整個女性業務的增長。

Okay. And a follow-up, as we zoom out a bit, you do have advanced data analytics platform as well as AI within your IT. What are you thinking about your merchant organization and how that can get faster and test, read and react and how that can intersect with the analytics capabilities you have to just drive more inventory agility overall?

好的。接下來，當我們縮小一點時，您的 IT 中確實擁有先進的數據分析平台和人工智能。您對您的商業組織有何看法？如何才能更快地進行測試、讀取和反應，以及如何與您必須的分析功能相結合，以提高整體庫存敏捷性？

This is Peter. I mean relative to AI and analytics and all that, it has to go without saying, I guess that, that is a key element to success in retailing. I mean we've got to be able to embrace the data and I think whatever tool technology brings to the party that allows us to be faster and more agile. We learned nothing else with COVID -- that's the kind of stuff that we need to invest in. And we talk a lot here about how technology becomes an enabler for all things we do, but particularly in merchandising. So I don't have anything to announce or declare here other than we're staying close to that, and we're always looking for ways that we can improve our efficiency and effectiveness in merchandising.

這是彼得。我的意思是，相對於人工智能和分析等，不言而喻，我想這是零售業成功的關鍵要素。我的意思是，我們必須能夠擁抱數據，我認為無論工具技術為聚會帶來什麼，都可以讓我們變得更快、更敏捷。我們從新冠疫情中沒有學到任何其他東西——這就是我們需要投資的東西。我們在這裡談論了很多關於技術如何成為我們所做的所有事情的推動者，特別是在銷售方面。因此，除了我們一直在接近這一目標之外，我沒有任何要宣布或聲明的內容，而且我們一直在尋找提高銷售效率和效果的方法。

Maybe the only thing I would add on is, as all companies right now, and particularly all retailers, too, our team has been working for some time on great data platform. So we have a lot of richness there and are now starting to apply AI in all the places you would expect, everything from enhancing the customer experience to the operational capabilities to the merchant organization, like you just said, probably a long way to go, but I think everyone is putting some real energy around it.

也許我唯一要補充的是，正如目前所有公司，特別是所有零售商一樣，我們的團隊已經在出色的數據平台上工作了一段時間。所以我們在那裡有很多豐富的東西，現在開始將人工智能應用到你期望的所有地方，從增強客戶體驗到運營能力再到商業組織，就像你剛才說的，可能還有很長的路要走，但我認為每個人都在為此投入一些真正的精力。

And our last question comes from the line of Matthew Boss with JPMorgan.

我們的最後一個問題來自摩根大通的馬修·博斯（Matthew Boss）。

So Erik, at the Rack, with the strategic brand penetration target now reached, what do you see as the time line from here for Rack to return to positive top line growth? Maybe just help us to think about incremental opportunities that you see to drive continued top line improvement at the Rack banner multiyear as we think about price mix or categories?

那麼，Erik，在 Rack，隨著戰略品牌滲透率目標現已達到，您認為從現在起 Rack 恢復收入正增長的時間線是多少？也許只是幫助我們思考增量機會，您認為在我們考慮價格組合或類別時，您認為這些機會可以推動機架橫幅多年持續改善？

Yes. We -- as we've mentioned, we see continued sequential improvement, which you play that out, that gets us to having increases by the end of the year. And we see the Rack banner overall being a growth driver for us. One part of that is new stores, but we do see comp store growth coming. The strategic brand, it's part of the power and effectiveness for us has been in simplicity. But it is a bit of a blunt instrument. As you get within those strategic brands, they're not all created equal. And it varies with seasons.

是的。正如我們所提到的，我們看到了持續的連續改進，你可以看出，這使我們能夠在年底之前實現增長。我們認為 Rack 橫幅總體上是我們的增長動力。其中一部分是新店，但我們確實看到比較店的增長即將到來。戰略品牌，它是我們力量和有效性的一部分，一直很簡單。但這是一個有點生硬的工具。當你了解這些戰略品牌時，你會發現它們並不是生來平等的。而且隨季節變化。

So within that mix of strategic brands, we're in a position to move quickly and invest in those brands that are performing better. So it's not just about hitting a number of 65% our sales are in strategic brands. It is -- we continue to see opportunities within that chunk to have more productive inventory. And there's a lot of opportunities out there in [off-price]. And we have our inventories in a position to where we can be on offense and we have the focus directionally where we want to go. So we see those growth opportunities ahead of us and that they're sustainable.

因此，在戰略品牌組合中，我們能夠快速行動並投資那些表現更好的品牌。因此，這不僅僅是要達到 65% 的銷售額來自戰略品牌的目標。我們繼續看到該領域有機會擁有更高效的庫存。而且[折扣]有很多機會。我們的庫存處於可以進攻的位置，並且我們的重點是我們想要去的地方。因此，我們看到了擺在我們面前的這些增長機會，而且它們是可持續的。

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。我們的網站將提供為期一年的重播以及幻燈片演示和準備好的評論。感謝您對諾德斯特龍的興趣。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。