諾德斯特龍百貨 (JWN) 2023 Q3 法說會逐字稿

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

您好，歡迎參加 Nordstrom 2023 年第三季財報電話會議。 （操作員說明）。提醒一下，本次會議正在錄製中。

At this time, I'd like to turn the call over to Jamie Duies, Head of Investor Relations for Nordstrom. Thank you. You may begin.

現在，我想將電話轉給 Nordstrom 投資者關係主管 Jamie Duies。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.

下午好，感謝您加入我們。在開始之前，我想提一下，我們將參考投影片，您可以在nordstrom.com 的投資者關係部分查看投影片。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。

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

執行長 Erik Nordstrom 參加了今天的電話會議；皮特·諾德斯特龍，總裁；財務長 Cathy Smith 將提供業務最新情況，討論公司第三季的業績。

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

現在我將把電話轉給埃里克。

Thank you, Jamie, and good afternoon, everyone. Thank you for joining us today. I'll start with our Q3 performance. For the third quarter, we delivered revenue of $3.3 billion, earnings per share of $0.41 and adjusted earnings per share of $0.25. Our teams executed against our priorities, adapted quickly to shifting sales trends and delivered year-over-year profit growth despite lower sales in a challenging macroeconomic environment. We managed our inventory well as evidenced by the positive sales to inventory spread while leaning into pockets of demand. As we enter the holiday season, our teams worked hard to deliver the right assortment and engaging experiences for our customers.

謝謝傑米，大家下午好。感謝您今天加入我們。我將從第三季的表現開始。第三季度，我們營收 33 億美元，每股收益 0.41 美元，調整後每股收益 0.25 美元。我們的團隊按照我們的優先事項執行任務，迅速適應不斷變化的銷售趨勢，儘管在充滿挑戰的宏觀經濟環境中銷售額下降，但仍實現了同比利潤成長。我們很好地管理了我們的庫存，這可以從積極的銷售與庫存利差中得到證明，同時迎合需求。隨著假期的到來，我們的團隊努力為客戶提供合適的產品組合和引人入勝的體驗。

In the third quarter, we continued to make progress on our 3 priorities: improving Nordstrom Rack performance, increasing inventory productivity, and optimizing our supply chain. We will continue to focus on these areas in the quarters ahead in order to drive growth, profitability, and an improved customer experience. Based on our year-to-date results, we remain confident in our outlook, expect to deliver full year results within our updated guide range.

第三季度，我們繼續在 3 個優先事項上取得進展：提高 Nordstrom Rack 效能、提高庫存生產力和優化供應鏈。我們將在未來幾季繼續關注這些領域，以推動成長、提高獲利能力並改善客戶體驗。根據我們今年迄今為止的業績，我們對前景仍然充滿信心，預計全年業績將在我們更新的指導範圍內。

Turning now to our priorities. Our brand purpose is to help our customers feel good and look their best. At Nordstrom Rack, we know what works and believe in our strategy, delivering great brands at great prices expanding our reach and convenience with new Rack stores in key markets and driving greater engagement and profitability at nordstromrack.com. Throughout the quarter, our team stayed us on our assortment and move quickly to meet shifting demand, providing a compelling flow of new and relevant products for our customers.

現在轉向我們的優先事項。我們的品牌宗旨是幫助我們的客戶感覺良好並展現最佳狀態。在Nordstrom Rack，我們知道什麼是有效的，並相信我們的策略，以優惠的價格提供偉大的品牌，透過在主要市場開設新的Rack 商店來擴大我們的影響力和便利性，並提高Nordstromrack.com的參與度和獲利能力。在整個季度中，我們的團隊堅持我們的品種，並迅速採取行動以滿足不斷變化的需求，為我們的客戶提供了引人注目的新產品和相關產品。

In the third quarter, we continued to grow the most desirable brands, which had over a 300 basis point higher sell-through than other brands in our Rack assortment and feel good about our offering as we head into holiday. We also know that Rack customers value convenience, and we believe our stores are underpenetrated. We opened 11 new Rack stores during the third quarter and really in the fourth quarter, bringing the full year total to 19 new stores. We saw a strong customer response at each opening and have received positive feedback from customers. Rack stores continue to be a great investment for us. delivering returns well in excess of their cost of capital with a short payback period. They also continue to be our largest source of new customer acquisition.

第三季度，我們繼續發展最受歡迎的品牌，這些品牌的銷售量比我們的 Rack 系列中的其他品牌高出 300 個基點，並且在我們即將進入假期時對我們的產品感到滿意。我們也知道 Rack 客戶重視便利性，我們相信我們的商店滲透率較低。我們在第三季和第四季開設了 11 家新的 Rack 商店，使全年新店總數達到 19 家。我們在每次開業時都看到了強烈的客戶反響，並收到了客戶的正面回饋。貨架商店對我們來說仍然是一項巨大的投資。提供的回報遠超過其資本成本，且投資回收期短。他們也仍然是我們獲取新客戶的最大來源。

The scale of our digital off-price business is differentiated and unique, allowing us to serve our customers via omnichannel offerings in a way that other off-price retailers do not. And, while we still have work to do on our digital offering for the Rack, we're making progress as we've reworked the business model to ensure sustained profitability. The Rack digital channel is now profitable on a year-to-date basis, and we expect it to continue to be profitable for the full year. This digital channel plays an important role for the Rack in serving customers across stores and digital.

我們的數位折扣業務規模具有差異化和獨特性，使我們能夠透過全通路產品以其他折扣零售商無法做到的方式為客戶提供服務。而且，雖然我們在 Rack 的數位產品方面仍有工作要做，但我們正在取得進展，因為我們重新設計了業務模式以確保持續獲利。 Rack 數位頻道目前已於年初至今實現盈利，我們預計其全年將繼續盈利。此數位管道在為 Rack 跨商店和數位客戶提供服務方面發揮著重要作用。

Turning to our next priority. Increasing inventory productivity is critical in providing our customers with a consistent flow of the most relevant merchandise when and where they want it. Total inventory was down 9% in the third quarter and resulted in a positive sales to inventory spread. This lower level of inventory required fewer markdowns than last year and helped to drive expansion in our gross margin by 180 basis points in the third quarter. We're also pleased with the traction that our Nordstrom private brands are gaining. As a retailer of the best brands in the world, we believe our own brands will play a critical role in our overall mix as they have higher margins and lower return rates.

轉向我們的下一個優先事項。提高庫存效率對於為我們的客戶隨時隨地提供最相關的商品至關重要。第三季總庫存下降 9%，導致銷售與庫存利差擴大。庫存水準的降低需要比去年更少的降價，並有助於推動我們第三季的毛利率擴大 180 個基點。我們也對 Nordstrom 自有品牌獲得的吸引力感到高興。作為世界上最好品牌的零售商，我們相信我們的自有品牌將在我們的整體組合中發揮關鍵作用，因為它們具有更高的利潤和更低的退貨率。

Additionally, our investments in RFID technology continued to deliver improvements, enhancing the integrity of our inventory by providing improved stock accuracy and creating operational efficiencies across our stores and supply chain. Thanks to the hard work of our teams all year long, our overall inventory position is healthy heading into the holiday season.

此外，我們對 RFID 技術的投資不斷帶來改進，透過提高庫存準確性並提高整個商店和供應鏈的營運效率來增強庫存的完整性。由於我們團隊全年的辛勤工作，我們的整體庫存狀況在進入假期期間保持健康。

We also continue to make good progress on our third priority of optimizing our supply chain capabilities. Following four consecutive quarters of reductions in variable supply chain costs of more than 100 basis points, we were able to drive another 50 basis points reduction in the third quarter. Looking ahead, the absolute level of cost savings will stabilize as we've now been focused on this priority for over a year. However, we'll continue to seek out additional efficiencies and flow and improve productivity through inventory management initiatives. Our efforts to improve our supply chain have also contributed to increased productivity and store fulfillment for online orders at the Nordstrom banner and better inventory positioning and flow across the company.

我們也在優化供應鏈能力的第三個優先事項上繼續取得良好進展。繼連續四個季度可變供應鏈成本降低超過 100 個基點之後，我們在第三季又實現了 50 個基點的降低。展望未來，成本節省的絕對水準將穩定下來，因為我們一年多來一直專注於這項優先事項。然而，我們將繼續透過庫存管理計劃尋求額外的效率和流程並提高生產力。我們改善供應鏈的努力也有助於提高 Nordstrom 旗下線上訂單的生產效率和商店履行情況，以及更好的庫存定位和整個公司的流動。

Q3 marked our seventh consecutive quarter of year-over-year improvement in click to delivery times. We've been able to improve click-to-deliver times by nearly 20% over the last couple of years. All of this translates into a better experience for our customers and cost savings for us through fed delivery, lower cancellation rates and increased accuracy of inventory.

第三季標誌著我們的點擊交付時間連續第七個季度同比改善。在過去的幾年裡，我們已經將點擊交付時間縮短了近 20%。所有這些都為我們的客戶帶來了更好的體驗，並透過聯合配送、更低的取消率和更高的庫存準確性為我們節省了成本。

During the quarter, we announced some key leadership changes and welcomed a new member to our Board of Directors. Jamie Nordstrom was appointed Chief Merchandising Officer. Jamie has worked across nearly every aspect of our business and has held broad-based leadership roles, including in merchandising, store operations, and across our digital channels. Fanya Chandler was named President, Nordstrom stores. She has held several leadership positions, most recently serving as Senior Vice President and Regional Manager of the Southwest region. Gemma Lionello was appointed the role of President, Nordstrom Rack. She has served in numerous executive positions, including in both merchandising and stores and she spent 11 years in within our Nordstrom Rack business.

在本季度，我們宣布了一些關鍵的領導層變動，並迎來了董事會的新成員。傑米·諾德斯特龍 (Jamie Nordstrom) 被任命為首席行銷長。 Jamie 幾乎涉足了我們業務的各個方面，並擔任過廣泛的領導職務，包括在商品推銷、商店營運和整個數位管道方面。 Fanya Chandler 被任命為 Nordstrom 商店總裁。她曾擔任多個領導職務，最近擔任西南地區高級副總裁兼區域經理。 Gemma Lionello 被任命為 Nordstrom Rack 總裁。她曾擔任過多個管理職位，包括銷售和商店部門，並在 Nordstrom Rack 業務部門工作了 11 年。

And Lisa Price rejoined Nordstrom as Chief Human Resources Officer. Having most recently served as a CHRO of a large U.S. consumer company. Lisa understands that the success of our business starts with our people. All 4 have proven track records of leading successful teams while maintaining a relentless focus on our customers, we look forward to what they will accomplish in their new roles. We also welcomed Guy Persaud to our Board of Directors. Guy is a senior leader at Procter & Gamble.

麗莎·普萊斯 (Lisa Price) 重新加入 Nordstrom，擔任首席人力資源長。最近擔任一家美國大型消費品公司的首席人力資源長。麗莎明白，我們業務的成功始於我們的員工。所有 4 人都擁有領導成功團隊的良好記錄，同時保持對客戶的不懈關注，我們期待他們在新角色中取得的成就。我們也歡迎 Guy Persaud 加入我們的董事會。蓋伊是寶潔公司的高階領導者。

In closing, we are well positioned for the holiday season as we navigate near-term macroeconomic headwinds while continuing to advance our long-term strategic priorities and remain focused on improving the customer experience.

最後，我們為假期做好了充分準備，因為我們應對近期宏觀經濟逆風，同時繼續推動我們的長期策略重點，並繼續專注於改善客戶體驗。

Before I hand it over to Pete, I'd like to recognize the teams throughout our company that have been instrumental in driving our progress this year despite a challenging environment across the retail landscape. Their focus on and passion for our customer is what makes our success possible.

在將其交給皮特之前，我想對整個公司的團隊表示認可，儘管整個零售環境充滿挑戰，但他們在推動我們今年取得進步方面發揮了重要作用。他們對客戶的關注和熱情使我們的成功成為可能。

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

這樣，我就把它交給皮特了。

Thanks, Erik, and good afternoon, everyone. I'll focus my remarks on category performance and inventory position and provide some highlights of the actions we are taking to drive holiday sales. Starting with category performance. The majority of our categories improved sequentially from the second quarter of year-over-year trends with active, beauty, and accessories leading. Active sales growth was led by footwear, driven by New Balance, HOKA and On Running, and in apparel, Vuori. Beauty was strong at both manners as well, driven by designer brands and fragrance. Beauty has been a consistently solid performing category for us and continues to be a top trip driver.

謝謝埃里克，大家下午好。我將重點討論品類表現和庫存狀況，並重點介紹我們為推動假日銷售而採取的行動。從品類表現開始。我們的大多數品類的年比趨勢均較第二季度有所改善，其中運動用品、美容用品和配件處於領先地位。在 New Balance、HOKA 和 On Running 的推動下，鞋類產品的銷售成長強勁，而服裝領域的 Vuori 則帶動了鞋類產品的銷售成長。在設計師品牌和香水的推動下，美在禮儀和禮儀上也很強大。對我們來說，美容一直是表現穩定的類別，並且仍然是最主要的旅行驅動力。

This quarter, the introduction of a new beauty 5x points promotion for our Nordy Club loyalty program members supported category growth in stores and online. In anticipation of holiday, our in-stock rates at Nordstrom are above last year's levels, and we have a strong gift selection in beauty. The accessory category also posted positive growth in the quarter, led by sales at the Rack where handbags as well as jewelry and watches were strong.

本季度，我們為 Nordy Club 忠誠度計畫會員推出了新的美容 5 倍積分促銷活動，支持了商店和線上類別的成長。考慮到節日的到來，我們 Nordstrom 的庫存價格高於去年的水平，並且我們有豐富的美容禮品選擇。配件類別在本季也實現了正成長，其中手袋、珠寶和手錶的銷售表現強勁，帶動了 Rack 的銷售。

As Erik mentioned, we are gaining traction with our Nordstrom private brands, which are more profitable with lower return rates, which suggests strong content at a good value. Consistent with trends all year, Designer remains pressured, primarily in shoes and handbags, and we continue to rightsize our inventory to meet that demand. Looking ahead, we expect to end the year with an improved inventory position in this category.

正如 Erik 所提到的，我們的 Nordstrom 自有品牌正在獲得越來越多的關注，這些品牌的利潤更高，退貨率更低，這表明內容豐富且物有所值。與全年趨勢一致，設計師仍然面臨壓力，主要是鞋子和手袋，我們繼續調整庫存以滿足這一需求。展望未來，我們預計到年底該類別的庫存狀況將有所改善。

Heading into today, we're optimistic and pleased that our offering strikes the right balance of newness and relevance that our customers want. We've launched a number of efforts to drive sales and create memorable experiences. From a merchandise perspective, we're offering more newness than we had at this time last year. And we're investing in hot brands and products. For example, we've set up our investment in holiday favorite Ugg, and we've leaned into beauty gift sets, cashmere sweaters, and affordable stocking stuffers.

進入今天，我們感到樂觀和高興的是，我們的產品在客戶所需的新穎性和相關性之間取得了適當的平衡。我們採取了一系列措施來推動銷售並創造難忘的體驗。從商品的角度來看，我們提供的商品比去年這個時候更多。我們正在投資熱門品牌和產品。例如，我們投資了節日最受歡迎的 Ugg，並投資了美容禮品套裝、羊絨毛衣和價格實惠的聖誕襪。

We've also teamed up with Disney to celebrate its 100th year anniversary. Not only are we offering Disney merchandise from over 80 brands, we're also hosting events and immersive in-store experiences to celebrate. The Disney merchandise is featured in 25 Nordstrom stores and is also available online.

我們也與迪士尼合作慶祝其成立 100 週年。我們不僅提供 80 多個品牌的迪士尼商品，還舉辦活動和沈浸式店內體驗來慶祝。迪士尼商品在 Nordstrom 的 25 家商店有售，也可以在網路上購買。

We're taking a differentiated approach to connecting with customers this holiday season. Based on customer feedback, we're providing new ways for customers to discover gifts for everyone on their list. Including more than 20 inspirational gifting guides and curated gift categories. We're also leveraging our data and analytics to show more relevant and personalized content on nordstrom.com and on our app, based on shopping paver to further our key differentiator and that is serving customers.

在這個假期期間，我們將採取差異化的方式與客戶建立聯繫。根據客戶回饋，我們正在為客戶提供新的方式來為他們名單上的每個人找到禮物。包括 20 多個鼓舞人心的禮物指南和精心策劃的禮物類別。我們也利用我們的數據和分析，在nordstrom.com 和我們的應用程式上顯示更多相關和個人化的內容，基於購物鋪路器，以進一步推動我們的關鍵差異化優勢，即為客戶提供服務。

We've also positioned the Rack as a holiday destination, and we're prepared to welcome some with an enhanced assortment. We're excited that our teams took a sharp focus around gifting to enhance the customer experience.

我們還將 Rack 定位為度假勝地，並準備好以更豐富的品種迎接一些人。我們很高興我們的團隊專注於送禮以增強客戶體驗。

Ahead of the holiday season, we've announced actions designed to not only drive sales in-store and online, but to also improve the customer experience. We're expanding free 2-day shipping to all Nordstrom.com customers in our top markets as we know that customers are more likely to make additional purchases and remain a Nordstrom customer if they're confident their purchases will arrive quickly. And given the success that we've already seen with the new loyalty beauty promotion, we will continue to offer it throughout the holiday season.

在假期來臨之前，我們宣布了一些行動，不僅旨在推動店內和線上銷售，還旨在改善客戶體驗。我們正在向主要市場的所有 Nordstrom.com 客戶提供免費 2 天送貨服務，因為我們知道，如果客戶確信自己購買的商品會很快送達，他們更有可能進行額外購買並繼續成為 Nordstrom 客戶。鑑於我們在新的忠誠美容促銷活動中已經取得的成功，我們將在整個假期期間繼續提供該促銷活動。

Looking ahead, we are excited to serve our customers this holiday season and into '24. Our teams have worked hard all year to provide a curated and diverse assortment of brands and products that balances relevance and inspiration. We've made meaningful improvements to the customer that will help our customers shop seamlessly across both of our banners, both in stores and online. By doing this work, we're fulfilling our brand promise: to help customers feel good and look their best.

展望未來，我們很高興能夠在這個假期和 24 世紀為我們的客戶提供服務。我們的團隊全年努力工作，提供精心策劃的多樣化品牌和產品，平衡相關性和靈感。我們為客戶做出了有意義的改進，這將幫助我們的客戶在我們的兩個橫幅上無縫購物，無論是在商店還是在線上。透過這項工作，我們正在履行我們的品牌承諾：幫助客戶感覺良好並展現最佳狀態。

And with that, I'll hand it over to Cathy to discuss our financial results.

接下來，我將把它交給凱西討論我們的財務表現。

Thanks, Pete. I'll start with our third quarter results and then discuss our outlook for the remainder of the year. For the third quarter, we reported earnings per share of $0.41 compared to a loss of $0.13 per share in the year ago quarter. After excluding a favorable true-up related to the wind down of our Canadian operations, third quarter adjusted earnings per share was $0.25. Last year's adjusted earnings per share was $0.20 after excluding an asset impairment charge. We are pleased with the year-over-year gross margin and EPS increase despite lower net sales.

謝謝，皮特。我將從第三季的業績開始，然後討論我們對今年剩餘時間的展望。第三季度，我們報告每股收益為 0.41 美元，而去年同期每股虧損 0.13 美元。在排除與加拿大業務關閉相關的有利調整後，第三季調整後每股收益為 0.25 美元。扣除資產減損費用後，去年調整後每股收益為 0.20 美元。儘管淨銷售額較低，但我們對毛利率和每股盈餘的同比增長感到滿意。

Net sales and gross merchandise value, or GMV, both decreased 7% in Q3. Net sales included a negative impact of 270 basis points from the wind down of Canadian operations. It also reflects a positive impact of approximately 200 basis points from the timing shift of the anniversary sale with about 1 week falling into the third quarter this year.

第三季淨銷售額和商品總價值 (GMV) 均下降 7%。淨銷售額包括加拿大業務縮減造成的 270 個基點的負面影響。這也反映出週年慶銷售時間的轉變帶來了約200個基點的正面影響，今年第三季大約有1週時間。

Excluding the impact of these 2 items, net sales would have been down about 6% versus last year.

排除這兩項的影響，淨銷售額將比去年下降約 6%。

Nordstrom banner sales and GMV is 9% and 10%, respectively, versus last year. The wind down of Canadian operations had a negative impact on Nordstrom banner net sales of 410 basis points. and the anniversary timing shift had a positive impact of approximately 300 basis points. Nordstrom Rack sales decreased 2%. 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 Q3 sales of approximately 100 basis points, and we've now lapped that change.

與去年相比，Nordstrom 的橫幅銷售額和 GMV 分別成長了 9% 和 10%。加拿大業務的結束對 Nordstrom 旗下的淨銷售額產生了 410 個基點的負面影響。週年紀念時間轉移產生了約 300 個基點的正面影響。 Nordstrom Rack 銷售額下降 2%。從 2022 年第三季開始取消商店履行貨架數位訂單的決定對今年第三季的銷售額產生了約 100 個基點的負面影響，我們現在已經接受了這一變化。

As Erik said, new Rack stores continue to be a bright spot. New Rack stores performed well during the quarter. Digital sales decreased 11% in the third quarter. This includes an approximately 100 basis points negative impact from eliminating store fulfillment of Rack digital or last year and an approximately 400 basis points positive impact from the anniversary timing shift.

正如埃里克所說，新的 Rack 商店仍然是一個亮點。 New Rack 商店在本季表現良好。第三季數位銷售額下降 11%。這包括去年取消 Rack digital 商店履約帶來的約 100 個基點的負面影響，以及週年紀念時間轉變帶來的約 400 個基點的正面影響。

Gross profit as a percentage of net sales increased 180 basis points, primarily due to lower markdowns, increased inventory productivity and lower buying and occupancy costs. Partially offset by deleverage on lower sales. Ending inventory decreased 9% versus last year compared to a 7% decrease in sales. As Pete said, we are continuing to work through some aged Designer inventory. However, we're pleased with our overall inventory position as we enter the holiday season. Looking ahead, we expect to continue to benefit from improved inventory management routines and disciplines while meeting customer demand.

毛利潤佔淨銷售額的百分比增加了 180 個基點，這主要是由於降價幅度降低、庫存生產力提高以及購買和占用成本降低。銷售額下降的去槓桿化部分抵消了這一影響。期末庫存較去年下降 9%，銷售額則下降 7%。正如皮特所說，我們正在繼續處理一些老設計師的庫存。然而，隨著進入假期季節，我們對整體庫存狀況感到滿意。展望未來，我們預計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。

Reported SG&A as a percentage of net sales of 36.3% declined 5 basis points versus Q3 2022. Compared to adjusted SG&A in the year ago quarter, SG&A increased 200 basis points, primarily due to deleverage from lower sales and higher labor costs, partially offset by improvements in variable costs from supply chain efficiency initiatives. Adjusted SG&A expenses as a percentage of net sales, up 34.3% in the third quarter last year excluded an impairment charge.

報告的SG&A 佔淨銷售額的百分比為36.3%，與2022 年第三季相比下降了5 個基點。與去年同期調整後的SG&A 相比，SG&A 增加了200 個基點，主要是由於銷售額下降和勞動成本上升帶來的去槓桿化，部分抵銷了透過供應鏈效率措施改善變動成本。調整後的 SG&A 費用佔淨銷售額的百分比，去年第三季成長了 34.3%（不包括減損費用）。

We have been pleased with the results that our supply chain initiatives have delivered over the last year. As Erik mentioned, following 4 consecutive quarters in which we were able to deliver over 100 basis points of savings each quarter we were able to drive another 50 basis points reduction in variable supply chain costs in the third quarter.

我們對去年供應鏈計畫所取得的成果感到滿意。正如 Erik 所提到的，在連續 4 個季度每季實現超過 100 個基點的節省之後，我們在第三季又推動可變供應鏈成本降低了 50 個基點。

EBIT margin was 3.2% for the third quarter. After excluding the $25 million favorable true-up related to the wind down of Canadian operations in this year's third quarter and the impairment charge in the third quarter a year ago, adjusted EBIT margin improved 25 basis points to 2.4% despite lower sales leverage this quarter. We continue to maintain a solid balance sheet and financial position ending the third quarter with $375 million in cash as well as the full $800 million available on our revolving line of credit.

第三季息稅前利潤率為 3.2%。在排除與今年第三季加拿大業務縮減相關的2,500 萬美元有利調整以及去年第三季的減損費​​用後，儘管本季銷售槓桿較低，但調整後的息稅前利潤率仍提高了25 個基點至2.4% 。截至第三季末，我們繼續保持穩健的資產負債表和財務狀況，擁有 3.75 億美元現金以及 8 億美元的循環信貸額度。

Turning to our outlook for the rest of the year. I'll start by discussing the current environment and related assumptions underlying our guidance.

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。

Regardless of external impacts, we expect to make continued progress on our key priorities which will help drive sales, improve our profitability and mitigate inflationary cost pressures. We continue to see a cautious consumer, and it remains to be seen how changes in inflation, higher interest rates and the resumption of student loan repayments will affect discretionary consumer spending during the holiday season. Considering these factors and the consistent execution all year long, we are maintaining our full year revenue guide and narrowing our EPS guidance range.

無論外部影響如何，我們預計將在關鍵優先事項上取得持續進展，這將有助於推動銷售、提高獲利能力並減輕通膨成本壓力。我們仍然看到消費者持謹慎態度，通膨變化、利率上升和學生貸款償還的恢復將如何影響假期期間的可自由支配消費支出，還有待觀察。考慮到這些因素以及全年的一致執行，我們維持全年收入指引並縮小每股盈餘指引範圍。

I'll highlight a few factors that shape our outlook for the rest of the year, starting with revenue. We continue to expect full year 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。我們仍預期全年營收將比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。較 2023 財年第 53 週產生約 1.3 個百分點的正面影響，我們預計這將為第四季度的銷售額增加約 2 億美元。

Year-to-date credit card revenues have increased 9% versus last year, primarily as a result of our credit card partner agreement. This improvement has come despite credit card losses, which have risen at a slower pace than expected. As we mentioned last quarter, we have seen delinquencies rise gradually, and they are now above pre-pandemic levels. However, delinquencies remain below industry levels and are contemplated in our guidance.

今年迄今的信用卡收入比去年增長了 9%，這主要歸功於我們的信用卡合作夥伴協議。儘管信用卡損失的成長速度低於預期，但這種改善還是出現了。正如我們上季度提到的，我們看到拖欠率逐漸上升，目前已高於疫情前的水平。然而，拖欠率仍低於行業水平，並且在我們的指導中有所考慮。

Turning to EBIT. We now expect adjusted EBIT margin of 3.8% to 4.1% for the full year versus 3.3% in 2022. Our forecast assumes that adjusted EBIT margin expansion would be driven primarily by gross margin improvements in the fourth quarter from our focus on inventory productivity when compared to the elevated markdowns we took in 2022. We are updating our outlook for adjusted EPS for the full year. Our GAAP earnings per share outlook is now $0.74 to $0.94 for the full year, which includes the Canadian wind-down charges and related tax impact. Excluding the impact of these charges, we now expect adjusted earnings per share of $1.90 to $2.10 for the full year.

轉向息稅前利潤。我們目前預計全年調整後息稅前利潤率為3.8% 至4.1%，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我們對庫存生產率的關注所帶來的第四季度毛利率的改善所推動。我們在 2022 年進行了大幅降價。我們正在更新全年調整後每股收益的展望。目前，我們對全年 GAAP 每股盈餘的預期為 0.74 美元至 0.94 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，我們目前預計全年調整後每股收益為 1.90 美元至 2.10 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成長。我們繼續計劃將資本支出佔淨銷售額的 3% 至 4%。我們的第二要務是減少槓桿。我們仍然致力於透過獲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.

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利為每股 0.19 美元。

Our third quarter results along with the progress we've made on our priorities of improving Nordstrom Rack increasing inventory productivity and optimizing our supply chain capabilities, position us well to drive profitable growth in the fourth quarter and over the longer term. We are navigating through near-term uncertainty while remaining laser-focused on delivering shareholder value over the long term.

我們的第三季業績以及我們在改善 Nordstrom Rack 、提高庫存生產力和優化供應鏈能力等優先事項上取得的進展，使我們能夠在第四季度和長期內推動盈利成長。我們正在克服近期的不確定性，同時繼續專注於長期為股東創造價值。

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

傑米，我們已經準備好提問了。

Thank you, Cathy. Before we get started with the Q&A, we ask that participants please limit themselves to 1 question and 1 follow-up. We'll now move to the Q&A session.

謝謝你，凱西。在我們開始問答之前，我們要求參與者將自己限制在 1 個問題和 1 個後續行動。我們現在進入問答環節。

(Operator Instructions). Our first question comes from the line of Dana Telsey with Telsey Advisory Group.

（操作員說明）。我們的第一個問題來自 Telsey Advisory Group 的 Dana Telsey。

Good afternoon, everyone. And as we're getting to the end of the year with the fourth quarter and the guidance that you provided, the Rack banner improved the touch in the third quarter as compared to the second quarter. And then taking a look at the Nordstrom batter also improved the touch. What are you seeing in the different categories with some of them remain the same, like Active and like Beauty? Was it a step? Was it a pickup in terms of the categories? What were the components of the same-store sales that drove that improvement? And then as you think about the EBIT margins and the work on the supply chain that you've done, how are you initially thinking about frame in 2024? Thank you.

大家下午好。當我們第四季即將進入年底時，在您提供的指導下，與第二季相比，第三季的機架橫幅改善了觸感。然後看看 Nordstrom 擊球手也改善了觸感。您在不同類別中看到了什麼，其中一些類別保持不變，例如“活躍”和“美容”？這是一個步驟嗎？就類別而言，這是一個回升嗎？推動這項改善的同店銷售額的哪些組成部分？然後，當您考慮息稅前利潤率和您在供應鏈上所做的工作時，您最初是如何考慮 2024 年的框架的？謝謝。

Hi, Dana, it's Pete. I think what really drove the improved sales is the continued improvement we have in the balance and the content and quantity of our inventory. We've rightsized our inventory. We definitely got it in the right place in terms of the aging and the categories that matter.

嗨，達納，我是皮特。我認為真正推動銷售改善的是我們庫存平衡、內容和數量的持續改善。我們已經調整了庫存規模。就老化和重要類別而言，我們絕對把它放在了正確的位置。

As the year has gone and particularly in the last few weeks, as is always the case this time of the year, you're waiting for the weather to change so you can flip the switch to selling more sweaters and boots and coat have you on. It's gotten a little bit better of late.

隨著一年的過去，特別是在最後幾週，就像每年這個時候的情況一樣，您正在等待天氣變化，這樣您就可以打開銷售更多毛衣、靴子和外套的開關。 。最近已經好一點了。

But yes, I think in terms of the stuff that's performing well, generally Beauty is a good example of that, that's kind of working across the board. But I would say, in general, if you're looking for reasons why we've had sequential improvement and actually have had better inflection most recently. It's just the quality and content of our inventory.

但是，是的，我認為就表現良好的東西而言，一般來說，美容就是一個很好的例子，這是一種全面的工作。但我想說，總的來說，如果你正在尋找我們連續改進並且最近實際上有更好的變化的原因。這只是我們庫存的品質和內容。

And then Dana, it's Cathy. Nice to hear you again. With regards to 2024, obviously, we haven't given guidance yet. We do look forward to sharing our 2024 guidance next time we're together. But a couple of things you should expect to see, which is we're going to continue to see the strength of our Rack strategy, great brands at great prices is continuing to work.

然後是達納，是凱西。很高興再次聽到你的聲音。關於 2024 年，顯然我們還沒有給予指導。我們期待下次聚會分享我們的 2024 年指導。但有幾件事你應該期待看到，那就是我們將繼續看到我們的 Rack 策略的優勢，偉大的品牌以優惠的價格繼續發揮作用。

You'll see us continue to lean into those trends that Pete just noted, like Active and Beauty. Clearly, that's what's resonating with the customer. and we'll continue to refine our inventory productivity to enable us to be agile as we respond to our consumer demand. So more to come in 2024, but that's what we're thinking about.

您會看到我們繼續關注皮特剛才指出的趨勢，例如“活躍”和“美麗”。顯然，這就是引起客戶共鳴的原因。我們將繼續提高庫存生產力，使我們能夠靈活地回應消費者的需求。 2024 年還會有更多的事情發生，但這就是我們正在考慮的。

Next is Blake Anderson with Jefferies.

接下來是布萊克·安德森和傑弗瑞斯。

I wanted to ask on SG&A initiatives. You've obviously done a good job of improving the supply chain there as you have marching towards your medium-term margin goals for EBIT, what are the other drivers that you can deploy to improve SG&A? And on top of that, how much sales leverage do you feel like you need to also maybe improve leverage there?

我想詢問有關 SG&A 計劃的問題。顯然，隨著您朝著息稅前利潤的中期利潤目標邁進，您在改善供應鏈方面做得很好，您可以部署哪些其他驅動因素來改善 SG&A？最重要的是，您認為您需要多少銷售槓桿來提高槓桿？

Good afternoon, Blake, it's Cathy. So with regards to SG&A, as you noted, what we seen great progress this year first with -- really driven by our supply chain initiatives, the 4 quarters of 100 basis points improvement. And then back to begin this quarter with another 50 basis points. So seeing great strength there continuing to drive in SG&A. Offsetting some of the other headwinds that we've seen. So the cost of inflation coming through some of the SG&A categories, which we've been offsetting.

下午好，布萊克，我是凱西。因此，就 SG&A 而言，正如您所指出的，我們今年首先看到了巨大的進步，這實際上是由我們的供應鏈計劃推動的，四個季度實現了 100 個基點的改善。然後在本季開始時又升息 50 個基點。因此，我們看到了巨大的力量繼續推動 SG&A 的發展。抵消我們所看到的其他一些不利因素。因此，通貨膨脹成本來自於某些SG&A類別，我們一直在抵銷這些成本。

Each year, though, as we go into planning, we test ourselves with offsetting inflation with productivity improvement. So we would expect to see that same challenge coming into next year pretty much across all of our categories in SG&A. It's an extreme focus of ours right now.

不過，每年，當我們進行規劃時，我們都會測試自己能否透過提高生產力來抵銷通貨膨脹。因此，我們預計明年我們的 SG&A 幾乎所有類別都會面臨相同的挑戰。這是我們現在的一個極端焦點。

Got it. And then the follow-up would be more of a high-level question, but as you look at the gap between the Nordstrom banner sales decline in Nordstrom Rack, what do you really attribute that to? And as we think about next year, are there any puts and takes or thoughts on if that gap could close or what banner might be positioned better than the other?

知道了。接下來的問題將是一個更高級的問題，但是當您查看 Nordstrom Rack 中 Nordstrom 橫幅銷售下降之間的差距時，您真正將其歸因於什麼呢？當我們考慮明年時，是否有任何看跌期權或想法，是否可以縮小這一差距，或者哪條橫幅的位置可能比其他橫幅更好？

Hi, this is Erik. Along the way, the banners are independent. There's certainly a synergy to our business. Rack stores are our #1 source of new customer acquisition and we get good migration between the brands. But they do -- they have a very separate and distinct business model. And so they're hard-pressed to predict, it depend a lot on the external environment.

嗨，這是艾瑞克。一路走來，旗幟獨立。我們的業務肯定會產生協同效應。貨架商店是我們獲取新客戶的第一來源，我們在品牌之間實現了良好的遷移。但他們確實有——他們有一個非常獨立和獨特的商業模式。所以他們很難預測，這在很大程度上取決於外部環境。

As far as what's driving the results, how we came into the year, very focused on our Rack business, and we saw opportunities and really goes to last year where the supply chain challenges we had were most acute in our Rack business and it really disrupted our flow, our mix from being what we want it to be. So that's been a big focus of the team this year, and that's what we're seeing our sequential improvement as we've had the quantity right where we can be more aggressive in responding to what we're hearing from the customer, and we can bring in a bigger mix of these strategic brands that we know really make the difference in customers coming to Nordstrom Rack.

就推動結果的因素而言，我們如何進入這一年，非常專注於我們的機架業務，我們看到了機會，而且確實去年我們在機架業務中遇到的供應鏈挑戰最為嚴峻，這確實擾亂了我們我們的流程、我們的組合都是我們想要的。因此，這是團隊今年的重點，這就是我們所看到的連續改進，因為我們已經有了足夠的數量，可以更積極地回應我們從客戶那裡聽到的信息，並且我們可以引入更多的策略品牌組合，我們知道這些品牌確實可以為Nordstrom Rack 的客戶帶來不同。

For the Nordstrom banner business, the stores have been -- I think you're seeing around, there's been a bit of a return to stores this year. Digital business has been a little more pressured in that. For us, we really don't look at the separate channels much. We want to be there for how the customer wants to shop with us. And so our inventories are in great shape, as Pete mentioned, and we're set up well for the holiday business in both banners.

對於諾德斯特龍 (Nordstrom) 的旗幟業務來說，商店——我想你已經看到了，今年商店有所回升。數位業務在這方面受到的壓力更大一些。對我們來說，我們確實不太關注單獨的管道。我們希望滿足客戶的購物需求。因此，正如皮特所提到的，我們的庫存狀況良好，而且我們已經為這兩個旗幟的假期業務做好了準備。

Next is Michael Binetti with Evercore.

接下來是 Evercore 的 Michael Binetti。

I want to just, you might have said something to Dana about what you're seeing in the current quarter just because I think the -- there's a little bit of wood to chop through some of the normalizations here for the 53rd week in Canada, but I think it embeds a little bit of an acceleration in the underlying rate. I wanted to see if that was something you're seeing today. You might have mentioned that it was something related to the -- you're feeling better about the content of inventory heading into the holiday. If you don't mind just talk about for a minute, let us know what you're seeing.

我想說的是，你可能已經向 Dana 說了一些你在本季度所看到的情況，因為我認為，在加拿大第 53 週的正常化過程中，還有一些問題需要解決，但我認為它在基本利率中嵌入了一點加速。我想看看你今天看到的是不是這樣的東西。您可能已經提到，這與您對即將進入假期的庫存內容感覺更好有關。如果您不介意談一分鐘，請告訴我們您所看到的內容。

And then I also want to zero on the SG&A, the 100 basis point run rate kind of rolling off, you said you got another 50 in this quarter. It didn't sound like you were suggesting at that kind of level of 50 basis points would go forward. Is there any reason that wouldn't? The figure that you saw this quarter wouldn't continue for the next few quarters? And maybe just a few comments on what the new 50 basis points from what you guys are actually able to do as you did work on the supply chain.

然後我還想將 SG&A 歸零，100 個基點運行率有點下降，你說你在本季度又得到了 50 個基點。聽起來您並沒有建議以 50 個基點的水平繼續前進。有什麼理由不這樣做嗎？您本季看到的數字在接下來的幾季不會持續嗎？也許只是對你們在供應鏈上工作時實際能夠做的事情的新 50 個基點進行一些評論。

Hi, Michael. On the first one, sales drivers, as we shared, we're pleased first off, to drive more profitability on fewer sales year-over-year. So we'll start there with just the quality of earnings continues to have seen strength. And it's really around all of the initiatives we've been driving. But with regards to the drivers of the sales, it's clear that customers are responding to newness and promotion, as Pete shared in the prepared remarks.

嗨，邁克爾。在第一個方面，正如我們所分享的，銷售驅動因素，我們首先很高興能夠以逐年減少的銷售額提高盈利能力。因此，我們將從獲利品質繼續強勁開始。它確實圍繞著我們一直在推動的所有舉措。但就銷售驅動因素而言，正如皮特在準備好的演講中所分享的那樣，很明顯，客戶正在對新鮮事物和促銷做出反應。

And we're seeing it in a couple of things the actions like our 5x Beauty to our Nordic Club members and the free 2-day shipping as we move into the holidays is really resonating, I think, with our customers. So great progress there with newness and promotion.

我認為，我們在一些事情上看到了這一點，例如我們為北歐俱樂部會員提供的 5x Beauty 活動以及我們進入假期時提供的免費 2 天送貨服務，這些行動確實引起了我們客戶的共鳴。在新鮮感和促銷方面取得了巨大的進步。

On SG&A, what's the new 50 basis points, I like the way you asked that. So as the supply chain has continued to drive improvements now for a number of quarters. It will just be more challenging to lap those improvements. And so I would expect those to start to moderate over time, we're seeing really good progress across every element of the supply chain, but those will start to moderate. And we'll continue to work to offset the other lines of SG&A with productivity and initiatives.

關於SG&A，新的50個基點是多少，我喜歡你問的方式。因此，供應鏈在幾個季度中持續推動改善。實現這些改進只會更具挑戰性。因此，我預計隨著時間的推移，這些因素將開始放緩，我們看到供應鏈的每個要素都取得了很好的進展，但這些因素將開始放緩。我們將繼續努力透過生產力和主動性來抵消 SG&A 的其他方面。

Thank you. Our next question comes from the line of Oliver Chen with TD Cowen.

謝謝。我們的下一個問題來自 Oliver Chen 和 TD Cowen 的對話。

Hi, Erik, Peter and Cathy. Regarding the 2 banners, as you think about full line as well as Rack, what would you say are key aspects to positive comping and returning to growth just more generally or specifically and also as we think about the e-comm channel. And Cathy, as we look at the credit card income, just what are some key variables you're assuming in terms of the next quarter and also perhaps like the framework from which that may differ if you have any thoughts.

嗨，艾瑞克、彼得和凱西。關於這兩個橫幅，當您考慮全線以及機架時，您會說什麼是積極競爭和恢復成長的關鍵方面，更普遍或更具體，以及當我們考慮電子商務管道時。凱茜，當我們研究信用卡收入時，您對下個季度假設的一些關鍵變數是什麼，如果您有任何想法，可能還喜歡可能有所不同的框架。

This is Erik. Let me start on the Rack banner. We definitely see Rack as a growth vehicle for us in a couple of ways. The one just kind of our core strategy that I touched on of great brands, great prices, getting that assortment right. And that's an evergreen subject. We always have opportunities to get that mix better and better. And our teams have done that.

這是埃里克。讓我從機架橫幅開始。我們確實將 Rack 視為我們在幾個方面的成長工具。我談到的就是我們的核心策略，即偉大的品牌、優惠的價格、正確的品種。這是一個常青的話題。我們總是有機會讓這種組合變得越來越好。我們的團隊已經做到了。

I would say when we were really pouring the gas on there is having more and more dedicated roles there. So you saw our announcement of Gemma as Rack President, that follows earlier that we really have built out a separate Rack buying team there. So we think we're better positioned to be more agile and really product mix, right?

我想說，當我們真正投入精力時，就會有越來越多的專門角色。所以你看到了我們宣布 Gemma 擔任 Rack 總裁，隨後我們確實在那裡建立了一個單獨的 Rack 採購團隊。所以我們認為我們更有能力變得更敏捷和真正的產品組合，對吧？

The second part, Rack growth would be around new stores. We see a lot of opportunity to add profitable new Rack stores. And we've been opening up more this year. We have more planned for next year and we're getting really great returns out of those investments there. And again, we lots of runway there to keep add new stores.

第二部分，貨架成長將圍繞新商店。我們看到了許多增加有利可圖的新 Rack 商店的機會。今年我們開放了更多。明年我們有更多的計劃，我們從這些投資中獲得了非常好的回報。再說一遍，我們在那裡有很多跑道可以不斷增加新商店。

The other piece is really around the digital part and omni-channel capabilities that Rack.com affords us. And as you know, there's really not many players in the online off-price space. It's a hard business to be profitable at. Our Rack.com business is profitable, and that was really the first step of leveraging that asset is to get to profitability. Now we're there, we've we see more opportunity around profitability. But we see opportunity to leverage that capability to engage with customers more and more. And so we have a path forward of a lot of omni-channel capabilities that we feel good about driving some growth there.

另一部分實際上是圍繞 Rack.com 為我們提供的數位部分和全通路功能。如您所知，在線折扣領域的參與者確實不多。這是一個很難獲利的行業。我們的 Rack.com 業務是盈利的，而利用該資產的第一步就是實現盈利。現在我們已經看到了更多圍繞盈利能力的機會。但我們看到了利用這種能力與客戶進行越來越多互動的機會。因此，我們擁有許多全通路能力的前進道路，我們對推動這些能力的成長感到滿意。

In the Nordstrom banner, I really would start with our digital business there. We see opportunities are well underway of having different inventory models that allow us to bring greater selection on the digital journey, whether we own the merchandise or not. So having other models to bring selection to our customers, he's got a step one. Step two is then using the data capabilities we've been building out to curate that larger offer for our customers.

在 Nordstrom 旗幟下，我真的會從那裡的數位業務開始。我們看到擁有不同庫存模型的機會正在順利進行，這使我們能夠在數位化旅程中帶來更多選擇，無論我們是否擁有商品。因此，透過其他型號為我們的客戶帶來選擇，他已經邁出了第一步。第二步是使用我們一直在建立的數據功能來為我們的客戶提供更大的服務。

In the end, it's about winning on the discovery journey for customers and having a fluent newness is important. But having that selection and being able to offer up the right curated offering for customers on their journey is super important as well.

最終，這是為了贏得客戶的發現之旅，而流暢的新鮮感非常重要。但擁有這樣的選擇並且能夠為客戶的旅程提供合適的策劃產品也非常重要。

And then Oliver, I'll answer on the credit card revenues. Just remembering that, first and foremost, they're a part of our loyalty program and they're part of our most loyal customers. And as we think about the credit card revenues for Q3, they were up year-over-year, and that really was driven by higher customer balances, higher interest rates, a little bit of benefit from the new relationship with our TD partner and then offset a little bit by increased losses. As we move into Q4, I'd expect them to be around the same level, around that 3% or so of sales, so about the same level as we clear out the rest of the year.

然後奧利弗，我將回答信用卡收入問題。請記住，首先也是最重要的是，他們是我們忠誠度計畫的一部分，也是我們最忠誠的客戶的一部分。當我們考慮第三季的信用卡收入時，它們同比增長，這實際上是由更高的客戶餘額、更高的利率、與我們的道明合作夥伴的新關係帶來的一點好處推動的，然後增加的損失抵消了一點。當我們進入第四季度時，我預計它們將處於同一水平，大約佔銷售額的 3% 左右，因此與我們清理今年剩餘時間的水平大致相同。

Happy holidays. Nice regards. Nice work on the marketplace model. Thank you.

節日快樂。親切的問候。市場模型方面的出色工作。謝謝。

Next is Matthew Boss with JPMorgan.

接下來是摩根大通的馬修·博斯。

So Erik, maybe could you just elaborate on the continued softness at the full lines? Maybe how much should we attribute it to the macro backdrop relative to company-specific execution? And then Pete, just maybe to tie into that from a category perspective, could you touch on trends in women's apparel relative to the above-average performance that you cited in Active and Beauty?

那麼艾瑞克，也許你能詳細說明一下全線的持續柔軟度嗎？也許我們應該在多大程度上將其歸因於相對於公司特定執行的宏觀背景？然後，Pete，也許從類別的角度來看，您能否談談與您在“活力”和“美容”中提到的高於平均水平的表現相關的女裝趨勢？

Hi, Matthew. I'll start with, we feel good about our execution. And that starts with having the right inventory levels that allow us to be responsive to the customer and get our mix right. And our merchandising teams have done a great job on that. Really pleased with our inventory levels and the agility that's affording us. We still have some designer inventory to work through. Outside of that, we feel really good about that execution.

嗨，馬修。首先，我們對我們的執行情況感到滿意。首先是擁有正確的庫存水平，使我們能夠回應客戶並獲得正確的組合。我們的銷售團隊在這方面做得很好。對我們的庫存水準和為我們提供的敏捷性非常滿意。我們還有一些設計師庫存需要處理。除此之外，我們對這次執行感到非常滿意。

I think our execution is good. Now that being said, sales is a controllable for us. That is the scoreboard and on how we're serving customers. And we see lots of opportunity to continue to do things within our control, in particular, around traffic. Traffic has been soft. Our average order size has gone up, but traffic has been down a bit.

我認為我們的執行力很好。話雖這麼說，銷量對我們來說是可控的。這是記分板以及我們如何為客戶服務的方式。我們看到有很多機會繼續在我們的控制範圍內做事情，特別是在交通方面。交通一直疲軟。我們的平均訂單量有所增加，但流量有所下降。

So we've done some things as of late. Like we have a 5x Beauty rewards promotion going on right now through holiday that we're getting good response from and that is driving extra traffic and conversion. And we also have expanded our free 2-day shipping. We've had -- we've built out free 2-day shipping capabilities as part of our loyalty program and it really leverages our closer to you, market strategy capabilities that we've talked about for a while.

所以我們最近做了一些事情。就像我們現在在假期期間正在進行 5 倍美容獎勵促銷活動一樣，我們得到了良好的反響，這推動了額外的流量和轉換。我們也擴大了免費 2 天送貨服務。我們已經建立了免費的 2 天送貨功能，作為我們忠誠度計劃的一部分，它確實利用了我們離您更近的市場戰略能力，我們已經討論了一段時間了。

That's the built out the point that we're able to expand that for the holiday season and get customers faster delivery, which we know is always a good thing, both for conversion and for return rate. So again, in short, I think the execution has been really solid and put us in a good position to respond to the customers with the holiday season.

這就是我們能夠在假期期間擴大這一範圍並讓客戶更快地交貨的目的，我們知道這對於轉換率和退貨率來說始終是一件好事。簡而言之，我認為執行力非常紮實，使我們能夠在假期期間更好地回應客戶。

And this is Pete. Relative to women's that Erik talked about, look, it's a big and important category for us, and it's got a lot of attention. We've been making improvements, and we're not where we need to be, but it's definitely got momentum moving in the right direction. We've spent a lot of time in the last couple of months in our own stores and actually in the competition. And I think what's been good about this whole process is the real return to the merchant stuff that's super important.

這是皮特。相對於艾瑞克談到的女性，你看，這對我們來說是一個大而重要的類別，並且受到了很多關注。我們一直在做出改進，雖然還沒有達到我們需要達到的目標，但它肯定有朝著正確方向發展的勢頭。在過去的幾個月裡，我們花了很多時間在我們自己的商店和實際的競爭中。我認為整個過程的好處是真正回歸商人的東西，這是非常重要的。

That's just being close to what customers are asking for, what their choices are there in the marketplace. And we've got some areas of strength we're going to invest into. One of them is our own label programs. You've heard us talk about that and that it's an opportunity for us to grow, and that is true. Our sell-throughs in our -- in the Nordstrom product, our own label is up 30% year-over-year.

這只是接近客戶的要求以及他們在市場上的選擇。我們已經在一些優勢領域進行了投資。其中之一是我們自己的標籤計劃。您已經聽我們談論過這一點，這是我們成長的機會，這是事實。我們自己的品牌 Nordstrom 產品的銷售量較去年同期成長了 30%。

We have strong growth and a lot of that's in women's apparel as why's we're bringing this up. We have strong growth planned in '24. And when we can get that right, that's going to have a lot to do with the overall health of our women's apparel business.

我們有強勁的成長，其中很大一部分是在女裝領域，這就是我們提出這個問題的原因。我們計劃在 2024 年實現強勁成長。當我們能夠做到這一點時，這將對我們女裝業務的整體健康產生很大影響。

The other thing I'd say is being out in the stores to call it, we tend to get is about the things that we can bring in that feel special, elevated, and aspirational relatively in every store that we serve. And a lot of that ends up in the kind of advanced contemporary space. And so we're doing a good job of editing down and prioritizing and focusing on brands.

我想說的另一件事是，在商店裡，我們傾向於得到的是我們可以帶來的東西，這些東西在我們服務的每家商店中都感覺特別、高貴和令人嚮往。其中許多最終都進入了先進的當代空間。因此，我們在精簡、優先排序和專注於品牌方面做得很好。

I would say one of the things that hurt us in the last couple of years, probably we're a little too wide with the breadth of our selection. Therefore, probably weren't making strong enough statements on the stuff that matter most, and we have an opportunity to improve that, and we've been working on it. So I'm going to have to give us a little bit of an incomplete here, but we'll definitely be circling back with you as time goes on to let you know about our progress, but there's a lot of reason to believe that we have a good improvement to make there in women's apparel.

我想說的是過去幾年傷害我們的一件事，可能是我們的選擇範圍有點太寬了。因此，可能沒有對最重要的事情做出足夠有力的聲明，我們有機會改進這一點，並且我們一直在努力。因此，我必須在這裡給我們一些不完整的信息，但隨著時間的推移，我們肯定會和您一起回來，讓您了解我們的進展，但有很多理由相信我們女裝方面有很大的改進。

Our last question comes from Brooke Roach with Goldman Sachs.

我們的最後一個問題來自高盛的布魯克·羅奇。

I was hoping we could get a deeper update on what you're seeing in the Designer business. Is that trend starting to stabilize versus the softening trend that you had seen earlier in the year, either on a 1-year or a 4-year stock basis? And then for Cathy, can you elaborate on how you're planning markdowns for the year, particularly what's embedded for promotional recapture in your fourth quarter outlook relative to last year's outsized pressure?

我希望我們能夠更深入地了解您在設計師業務中所看到的情況。與您今年早些時候看到的一年期或四年期股票的疲軟趨勢相比，這一趨勢是否開始穩定？然後，Cathy，您能否詳細說明今年的降價計劃，特別是相對於去年的巨大壓力，第四季度展望中包含哪些促銷活動？

Yes, Pete. I'll start on the Designer part. I think relative to what's happening, the trend is normalizing and stabilizing. And if you look at it over that -- the multiple year stack you talked about it, we're still doing more business in Designer now year-to-date in '23 than we did year-to-date in '19, for example. So while it has come back from some of the heights that we had in the last couple of years, I guess, we would view that really more as normalizing. And I think that's natural given the big run-up we had there for a while.

是的，皮特。我將從設計師部分開始。我認為相對於正在發生的事情，趨勢正在正常化和穩定。如果你仔細觀察一下——你談到的多年堆棧，我們在 23 年迄今為止在 Designer 方面的業務仍然比 19 年迄今為止更多，因為例子。因此，雖然它已經從過去幾年的一些高度回升，但我想，我們會認為這實際上更像是正常化。我認為考慮到我們一段時間以來的大幅增長，這是很自然的。

It's an important part of our business. We continue to invest in. And I think for us is making sure we get the inventory levels in a good spot, so we can have that flow in newness. I think particularly in that business, it's important that we keep having new things to show customers, and we're getting a healthier position in that regard every month that goes forward.

這是我們業務的重要組成部分。我們繼續投資。我認為對我們來說，就是確保我們的庫存水準處於一個好的位置，這樣我們就可以擁有新鮮的流動。我認為特別是在這個行業，重要的是我們不斷向客戶展示新的東西，而且我們在這方面每個月都會獲得更健康的地位。

And with regards to markdowns, maybe I'll take it to a little bit bigger perspective, which is gross margin first. And that is we're really pleased with the gross margin improvements we've delivered this year for the whole year. And then that's really been largely driven by our inventory productivity priority. Our Q3 35% gross margin rate is a historically healthy rate for the third quarter.

關於降價，也許我會從更大的角度來看，首先是毛利率。也就是說，我們對今年全年的毛利率改善感到非常滿意。這在很大程度上是由我們的庫存生產力優先考慮所推動的。我們第三季 35% 的毛利率是第三季歷史上健康的水平。

And then so as we think about going into the fourth quarter with regards to the gross margin rate and then obviously, the embedded assumption around markdowns is, given that we're going into the fourth quarter and the holidays with a healthy inventory place, you would expect us to be favorable to last year, really driven by those improved year-over-year markdowns, just given the strength of our inventory.

然後，當我們考慮進入第四季度的毛利率時，顯然，圍繞降價的內在假設是，考慮到我們將進入第四季度和假期，庫存狀況良好，你考慮到我們的庫存實力，我們預計去年的表現將是有利的，這實際上是由於逐年降價的改善所推動的。

So we're pleased with our performance all year, the inventory productivity has been driving it. Probably always room to continue to improve, but I am really pleased where we're starting at.

因此，我們對全年的業績感到滿意，庫存生產力一直在推動這一業績。也許總是有繼續改進的空間，但我真的很高興我們的起點。

All right. 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.

好的。謝謝。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。