柯爾百貨 (KSS) 2024 Q1 法說會逐字稿

Good morning, and welcome to the Kohl's Corporation first-quarter 2024 earnings conference call. Please note that today's conference is being recorded. (Operator Instructions) It is now my pleasure to turn today's call over to Mark Rupe, SVP of IR and Treasury. Please go ahead.

早安，歡迎參加 Kohl's Corporation 2024 年第一季財報電話會議。請注意，今天的會議正在錄製中。 （操作員說明） 現在，我很高興將今天的電話轉給 IR 和財務部高級副總裁 Mark Rupe。請繼續。

Thank you. Certain statements made on this call, including projected financial results in the company's future initiatives are forward looking statements. Such statements are subject to certain risks and uncertainties which could cause Kohl's actual results to differ materially from those projected in such forward looking statements.

謝謝。本次電話會議所做的某些陳述，包括公司未來計畫中的預期財務結果，均為前瞻性陳述。此類陳述存在某些風險和不確定性，可能導致科爾的實際結果與此類前瞻性陳述中的預測有重大差異。

Such risks and uncertainties include, but are not limited to those that are described in Item 1A in Kohl's most recent annual report on Form 10- K, and as may be supplemented from time to time in Kohl's other filings with the SEC. All of which are expressly incorporated herein by reference. Forward-looking statements relate to the date initially made, and Kohl's undertakes no obligation to update them.

此類風險和不確定性包括但不限於Kohl's 最近的10-K 表格年度報告第1A 項中描述的風險和不確定性，以及Kohl's 向SEC 提交的其他文件中可能不時補充的風險和不確定性。所有這些都明確地透過引用併入本文。前瞻性陳述涉及最初做出的日期，科爾士百貨不承擔更新這些陳述的義務。

In addition, during this call, we may make reference to non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found in the investor presentation filed as an exhibit to our Form 8-K filed with the SEC and is available on the company's Investor Relations website. Please note that this call will be recorded. Have a replay of this call will not be updated.

此外，在本次電話會議中，我們可能會參考非公認會計準則財務指標。非 GAAP 財務指標的調整可以在作為我們向 SEC 提交的 8-K 表格附件提交的投資者簡報中找到，也可以在公司的投資者關係網站上找到。請注意，此通話將會被錄音。本次通話的重播將不會更新。

So if you're listening to a replay of this call, if possible that the information discussed is no longer current, and Kohl's undertakes no obligation to update such information. With me this morning are Tom Kingsbury, our CEO, and Jill Timm, our Chief Financial Officer. I will now turn the call over to Tom.

因此，如果您正在收聽本次通話的重播，如果可能的話，所討論的資訊不再是最新的，並且 Kohl's 不承擔更新此類資訊的義務。今天早上與我在一起的有我們的執行長湯姆金斯伯里 (Tom Kingsbury) 和我們的財務長吉爾蒂姆 (Jill Timm)。我現在會把電話轉給湯姆。

Thank you, Mark, and good morning, everyone. Our first quarter results did not meet our expectations and are not reflective of the direction we're heading with our strategic initiative. We knew that first quarter would be our toughest comparison of the year. This was predominantly due to last year's elevated clearance activity, which is more than 600 basis points of drag on comp sales in Q1.

謝謝你，馬克，大家早安。我們第一季的業績沒有達到我們的預期，也沒有反映我們策略舉措的方向。我們知道第一季將是我們今年最艱難的比較。這主要是由於去年清倉活動增加，第一季的同類產品銷售受到拖累超過 600 個基點。

That said, we expected our regular priced business to offset this headwind. Regular price sales were strong through the first eight weeks of the quarter. So softened in late March and into April, especially for our spring seasonal product. And while regular price sales did increase low single digits in the first quarter, their best quarterly comp performance since 2018, they were below our expectations.

也就是說，我們預期我們的正常定價業務將抵消此不利因素。本季前八週，正常價格銷售強勁。因此在三月下旬和四月期間疲軟，特別是對於我們的春季季節性產品。儘管正常價格銷售在第一季確實實現了低個位數成長，這是自 2018 年以來最好的季度業績表現，但仍低於我們的預期。

With a clearance headwind now behind us, we expect our performance will improve building on our positive regular price trends, driven by our early success in new categories and continued growth in Sephora. We are also effectively managing inventory, controlling our expenses, which resulted in gross margin expansion and then SG&A declined in the quarter.

現在，清倉逆風已經過去，我們預計，在新類別的早期成功和絲芙蘭的持續增長的推動下，我們的業績將在積極的常規價格趨勢的基礎上有所改善。我們也有效地管理庫存，控制開支，這導致毛利率擴張，然後本季的銷售、管理費用（SG&A）下降。

However, there are areas of opportunity that we are actively addressing, including our active in jewellery businesses. We continue to have high conviction in our strategy, supported by the traction we are gaining in our key growth areas, as well as the increase we are seeing in the number of new customers. That said, as Jill will discuss in more detail our updated fiscal year guidance reflects the first quarter underperformance in a more conservative outlook, given the ongoing uncertainty in the consumer environment.

然而，我們正在積極應對一些機會領域，包括我們積極參與的珠寶業務。我們繼續對我們的策略充滿信心，這得益於我們在關鍵成長領域獲得的牽引力以及我們看到的新客戶數量的增加。也就是說，鑑於消費者環境持續存在不確定性，吉爾將更詳細地討論我們更新的財政年度指引，反映出在更保守的前景下第一季的表現不佳。

As it relates to the consumer backdrop, our customers continue to be pressured by a number of economic factors, including high interest rates and inflation. While spending among our high income customers has remained steady, our middle income customer continues to be impacted.

由於與消費者背景有關，我們的客戶繼續受到許多經濟因素的壓力，包括高利率和通貨膨脹。雖然我們的高收入客戶的支出保持穩定，但我們的中等收入客戶繼續受到影響。

In this environment, we are working hard to deliver even more value, recognizing that the discretionary spend of our customers is pressured. Part of this is having a strong private brand portfolio, which positions us well as the consumer is looking for value. While navigating what remains a challenging consumer backdrop, we remain focused on executing against our four strategic priorities, which are enhancing the customer experience, accelerating and simplifying our value strategies, managing inventory and expenses with discipline and further strengthening our balance sheet.

在這種環境下，我們認識到客戶的可自由支配支出面臨壓力，正在努力提供更多價值。其中一部分是擁有強大的自有品牌組合，這使我們在消費者尋求價值時處於有利地位。在應對充滿挑戰的消費者環境的同時，我們仍然專注於執行我們的四個策略重點，即增強客戶體驗、加速和簡化我們的價值策略、嚴格管理庫存和費用以及進一步加強我們的資產負債表。

Over the past year, we have implemented a significant amount of change across the organization to reposition our business. Efforts of this scale take time. If I look at our progress against these priorities, we are executing well against too. Managing the inventory and expenses tightly and strengthening our balance sheet by reducing our long-term debt. When it comes to enhancing the customer experience and simplifying our value strategies, we are making progress, but continue to have opportunities in front of us.

在過去的一年裡，我們在整個組織內實施了大量變革，以重新定位我們的業務。這種規模的努力需要時間。如果我看看我們在這些優先事項方面取得的進展，我們也執行得很好。嚴格管理庫存和費用，並透過減少長期債務來加強我們的資產負債表。在增強客戶體驗和簡化我們的價值策略方面，我們正在取得進展，但我們面前仍然有機會。

Taking a step back, let me start with what's working. So for at Kohl's continues to deliver exceptional results. In Q1, Kohl's sales increased 60%, including greater than 20% comparable beauty sales growth and better than expected contribution from shops opened in the past year. We saw especially strong growth in our skin care, bath and body and fragrant offering. Driven in part by the continued success of brands such as the (inaudible) and Sephora collection.

退後一步，讓我從有效的方法開始。因此，Kohl's 繼續創造卓越的業績。第一季度，Kohl's 銷售額成長了 60%，其中可比美容品銷售額成長超過 20%，去年開設的商店的貢獻好於預期。我們看到皮膚護理、沐浴和身體以及香氛產品的成長尤其強勁。部分原因是（聽不清楚）和絲芙蘭系列等品牌的持續成功。

In 2024, we will open 144 shops, of which the majority will open in Q2, and we will end the year with Sephora and approximately 1,050 stores. Sephora continues to be an important driver of our new customer acquisition. We are also continuing to attract a younger, more diverse customer who shops more frequently as we have expanded Sephora across our store base .

2024年，我們將開設144家商店，其中大部分將在第二季開業，年底我們將開設絲芙蘭和約1,050家商店。絲芙蘭仍然是我們獲取新客戶的重要推手。隨著我們將絲芙蘭擴展到我們的商店基地，我們也將繼續吸引更年輕、更多樣化、購物頻率更高的顧客。

In addition to Sephora, we are also making progress in building our presence in underpenetrated categories, including home, [15] and impulse and look forward to the launch of Babies R Us. We outlined is collectively as the $2 billion plus sales opportunity for us in the coming years.

除了絲芙蘭之外，我們還在滲透率較低的類別中取得了進展，包括家居、[15] 和脈衝，並期待 Babies R Us 的推出。我們概述了未來幾年我們將獲得超過 20 億美元的銷售機會。

We continue to have confidence in our ability to achieve this target. In home, by the category underperformed the company average, we did deliver incremental sales from our growth initiative into core impact.

我們仍然對實現這一目標的能力充滿信心。在國內，以表現低於公司平均的類別來看，我們確實將成長計畫的增量銷售轉化為核心影響力。

In home decor, we are seeing the initial benefits from our expanded assortment and marketing investments with sales of seasonal and everyday to core up more than 30% in Q1.

在家居裝飾領域，我們看到了擴大品種和行銷投資帶來的初步效益，第一季季節性和日用品銷售額核心成長了 30% 以上。

New areas like Walmart, lighting and glass or have been well received. And in pet sales increased more than 100% in the quarter, benefiting from last year's assortment expansion. In gifting sales increased more than 30%, with strong performances across Valentine's Day and Easter and more recently, we were pleased with the performance of our Mother's Day gift presentation.

像沃爾瑪這樣的新領域，照明和玻璃還是受到了好評。受惠於去年品種的擴張，本季寵物銷售額成長超過 100%。禮品銷售成長了 30% 以上，在情人節和復活節期間表現強勁，最近，我們對母親節禮品展示的表現感到滿意。

In an impulse sales grew more than 60% as we introduce queuing lines in nearly 100 stores during Q1, we expect continued growth and gifting and employee costs going forward. We have invested in more receipts around key gifting events such as Father's Day, as well as American Merchandise to celebrate the Memorial Day in July fourth holidays. I

由於我們在第一季在近 100 家商店引入排隊，衝動銷售增加了 60% 以上，我們預計未來的禮品和員工成本將持續成長。我們圍繞父親節等重要禮品活動以及美國商品投資了更多收據，以慶祝七月四日的陣亡將士紀念日。我

n addition, we will add dedicated queuing lines to 250 more stores to reach more than one-third of our store base by year end. We also continue to be excited about our upcoming partnership with Babies R Us. This partnership allows us to serve the family in a more complete way during important period of their lives by creating a meaningful presence in the baby gear category.

此外，我們將在另外 250 家商店增加專用排隊線，到年底將覆蓋超過三分之一的商店。我們也對即將與 Babies R Us 建立合作關係感到興奮。這種合作關係使我們能夠在嬰兒用品類別中創造有意義的存在，從而在家庭生命的重要時期以更全面的方式為他們提供服務。

Baby gear is a large category that has seen disruption in the competitive landscape in recent years. Kohl's new commitment to this space represents a significant growth opportunity and broadens our reach with the younger customers. We will open Babies R Us shops in approximately 200 Kohl's stores in Q3, which will coincide with the launch of our online presence.

嬰兒用品是一個大類別，近年來競爭格局發生了變化。科爾對這一領域的新承諾代表著一個重大的成長機會，並擴大了我們與年輕客戶的接觸。第三季度，我們將在大約 200 家 Kohl's 商店中開設 Babies R Us 商店，這與我們線上業務的推出同時進行。

It's also important to mention that we are making progress in some areas of our apparel and footwear business. We have seen the most progress in our efforts to build our polished casual and dress were offerings across categories. This is most evident in the positive underlying trends. We are seeing our women's business.

值得一提的是，我們在服裝和鞋類業務的某些領域正在取得進展。我們在打造精緻休閒裝和正裝產品方面取得的最大進展是跨類別產品。這在正面的潛在趨勢中最為明顯。我們正在關注我們的女性業務。

In Q1, regular price sales were up 3% in women's, which indicates that the newness we are introducing is resonating with our customers. One example of this is dress business where the customer response has been very favorable. Dresses is an area we identified as a large opportunity for Kohl's.

第一季度，女裝的正常價格銷售額成長了 3%，這表明我們推出的新品引起了客戶的共鳴。其中一個例子是服裝業務，客戶的反應非常好。我們認為服裝領域對 Kohl's 來說是一個巨大的機會。

And for those that have visited our stores recently, you likely noticed a much greater dress presence. We launched a dedicated in-store dress shop in 700 of our stores and will expand the offering in Q2, supporting continued sales momentum.

對於最近訪問過我們商店的人來說，您可能會注意到更多的服裝。我們在 700 家門市開設了專門的店內服裝店，並將在第二季擴大產品範圍，以支持持續的銷售動能。

In our efforts to amplify polished casual more broadly are working, we have leaned into Lauren Conrad and Simply Vera, Vera Wang and have seen solid reception with both brands delivering positive growth in the quarter. We are also seeing positive regular price sales in our juniors business. This is an area where a lot of changes happening and we've introduced market brands to better react to fashion trends.

為了在更廣泛的範圍內擴大精緻休閒的影響力，我們向 Lauren Conrad 和 Simply Vera、Vera Wang 傾斜，並看到這兩個品牌在本季度都實現了積極增長，受到了熱烈歡迎。我們的青少年業務也看到了積極的正常價格銷售。這是一個正在發生許多變化的領域，我們引入了市場品牌以更好地應對時尚趨勢。

To build our efforts, we are repositioning the juniors offering next to support our in stores to better capitalize on cross shopping opportunities. Overall, we are pleased with the direction of our women's business as it is instrumental in driving business across other categories.

為了加強我們的努力，我們正在重新定位初級產品，以支持我們的店內更好地利用交叉購物機會。總體而言，我們對女性業務的方向感到滿意，因為它有助於推動其他類別的業務。

In addition to women's, we have seen solid demand for men's suiting, dress shirts and dress pants, as well as kids dresses and suitings. We've also seen casual and dress footwear performed well in both of these areas. Moving beyond product, let me share some of our other initiatives that are working.

除了女裝之外，我們還看到對男士西裝、正裝襯衫和正裝褲以及兒童連身裙和套裝的強勁需求。我們也看到休閒鞋和正裝鞋在這兩個領域都表現良好。除了產品之外，讓我分享一下我們其他一些正在發揮作用的舉措。

First, our efforts to simplify our value strategies have shown early signs of success. We are seeing positive signals through our customer insight work with more customers agreeing that Kohl's is delivering great value.

首先，我們簡化價值策略的努力已經顯示出成功的早期跡象。透過我們的客戶洞察工作，我們看到了積極的信號，越來越多的客戶一致認為 Kohl's 正在提供巨大的價值。

In February, we scaled high volume pricing across our private brand offering, which has been received positively by customers. Also during Q1, we increased the number of targeted offers to our loyalty customers and continue to leverage Kohl's cash has a key differentiator. And we amplified the messaging around awards for our loyalty program and close credit card to drive greater enrollment.

在二月份，我們對自有品牌產品進行了大量定價，並受到了客戶的積極回應。同樣在第一季度，我們增加了向忠誠客戶提供的有針對性的優惠數量，並繼續利用科爾的現金，這是一個關鍵的差異化優勢。我們還擴大了有關忠誠度計劃獎勵的信息，並關閉信用卡以推動更多的註冊。

Collectively, these actions helped us drive an increase in new customer acquisition in the first quarter and higher enrollment in redemption rates in our loyalty program, all of which are positive indicators of future engagement.

總的來說，這些行動幫助我們推動了第一季新客戶獲取量的增加，以及忠誠度計畫中兌換率的提高，所有這些都是未來參與度的正面指標。

With that said, we know our most loyal customers are most sensitive to our promotions, and therefore, we will ensure that we continue to bring value to these customers with targeted promotions and personalized offers, while we continue forward with our strategy to simplify value.

話雖如此，我們知道我們最忠實的客戶對我們的促銷活動最敏感，因此，我們將確保我們繼續透過有針對性的促銷和個人化優惠為這些客戶帶來價值，同時繼續推進簡化價值的策略。

Second, we are successfully managing inventory and expenses with discipline. Inventory in Q1 was down 13%, as we continue to benefit from our disciplines, where we operate with greater flexibility and open to buy. This led to an increase in the inventory turn, despite the lower sales. We will continue to target inventory declines in the mid single digits percent range for the focus on driving inventory turns.

其次，我們成功地嚴格管理庫存和費用。第一季的庫存下降了 13%，因為我們繼續受益於我們的紀律，我們的營運更加靈活且開放購買。儘管銷售額下降，但這導致庫存週轉率增加。我們將繼續將庫存下降目標控制在個位數百分比範圍內，以專注於推動庫存週轉。

And we controlled expenses tightly across the organization, resulting in a slight decline as compared to last year, even as we invest in marketing and our new growth initiatives, including new support shops and impulse queuing lines.

我們嚴格控制整個組織的支出，導致支出與去年相比略有下降，儘管我們投資於行銷和新的成長計劃，包括新的支援商店和脈衝排隊線。

And third, we are further strengthening the balance sheet. In Q1, our revolver borrowings of $385 million were down significantly from [$765 million] in the prior year. This level was in line with our expectations, despite lower than anticipated sales, a strong inventory management benefited cash flow.

第三，我們正在進一步加強資產負債表。第一季度，我們的循環貸款為 3.85 億美元，較前一年的 [7.65 億美元]大幅下降。這一水準符合我們的預期，儘管銷售額低於預期，但強有力的庫存管理有利於現金流。

In Q2, we will reduce long-term debt by $113 million by executing a make whole call on our May 2025 notes, which Jill will discuss in more detail.

在第二季度，我們將透過對 2025 年 5 月票據執行全額買權來減少 1.13 億美元的長期債務，吉爾將對此進行更詳細的討論。

So we are making solid progress across several of our initiatives. We are delivering incremental growth in new underpenetrated categories in Sephora, as well as in portions of our apparel and footwear offerings. In addition, we are managing inventory and expenses with discipline and further strengthening the balance sheet.

因此，我們的多項措施正在取得紮實進展。我們正在絲芙蘭的新的未滲透品類以及我們的部分服裝和鞋類產品中實現增量增長。此外，我們正在嚴格管理庫存和費用，並進一步強化資產負債表。

Now let me discuss some of the headwinds we faced in the quarter in areas of opportunity for us going forward. As I mentioned at the outset of this call, clearances is a major drag on our comp sales performance in Q1 as we lapped last year's elevated activity.

現在讓我討論一下我們在本季面臨的一些阻力以及我們未來的機會領域。正如我在本次電話會議一開始提到的，清倉是我們第一季銷售業績的主要拖累，因為我們超過了去年的活動增加。

This was a unique headwind that weighed heavily on results across our apparel and footwear businesses and especially in active, juniors and kids. Importantly, this headwind is now behind us, as our clearance sales normalize following the first quarter of 2023.

這是一個獨特的逆風，嚴重影響了我們服裝和鞋類業務的業績，尤其是運動鞋、青少年和兒童業務。重要的是，隨著我們的清倉銷售在 2023 年第一季後恢復正常，這種逆風現已過去。

In addition, we experienced softer demand in spring seasonal product dampening what otherwise was a strong positive trend in our regular price sales through the first eight weeks of the quarter. Categories, including tees, shorts and tanks were uniquely challenge impacting our men's and kids businesses, which have historically been sensitive to seasonal transitions.

此外，我們對春季季節性產品的需求疲軟，抑制了本季前八週正常價格銷售的強勁正面趨勢。 T 卹、短褲和背心等類別是影響我們男裝和童裝業務的獨特挑戰，這些業務歷來對季節變化非常敏感。

In addition to these headwinds, we also identified areas of opportunity for us going forward. The first area is active, which accounted for the majority of the overall sales decline in the quarter. Clearances, a major factor in the active decline. It was felt most significantly in our men's and kids businesses.

除了這些不利因素之外，我們還確定了未來的機會領域。第一個領域很活躍，佔本季整體銷售額下降的大部分。清倉，是活躍度下降的主要因素。在我們的男裝和童裝業務中感受最為明顯。

We continue to work with our brand partners to increase newness in the back half of the year and we are leaning into our value oriented private brands[ flat and tech here], which performed well. In the first quarter, Flex apparel with especially strong growing in excess of 50%, as we further expanded the brand to all stores.

我們繼續與我們的品牌合作夥伴合作，在今年下半年增加新鮮感，我們正在傾向於我們以價值為導向的自有品牌[這裡是扁平化和科技]，這些品牌表現良好。第一季度，隨著我們進一步將品牌擴展到所有商店，Flex 服裝的成長尤其強勁，超過 50%。

We see a long runway of growth for Flex as we've build awareness for this very affordable athleisure brand that is building a solid reputation with customers. The second area is accessories. Over the past two years, as we made space for supporting our stores, we did not do a good job of retaining our jewellery sales, which have been on a consistent sales decline.

我們看到 Flex 的成長之路很長，因為我們已經建立了對這個價格實惠的運動休閒品牌的認知度，並在客戶中建立了良好的聲譽。第二個區域是配件。過去兩年，當我們為支持商店騰出空間時，我們並沒有很好地保留珠寶銷售，珠寶銷售一直在下降。

We know there's still an opportunity to offer jewellery to our customers, especially during key events and holidays in the year. We are currently working to re-establish our presence, which will include expanding our in-store assortment and improving as in store positioning by placing it near Sephora. We will also have a stronger presence in jewellery during the holiday season.

我們知道仍然有機會向我們的客戶提供珠寶，特別是在一年中的重要活動和假期期間。我們目前正在努力重建我們的業務，其中包括擴大我們的店內品種，並透過將其放置在絲芙蘭附近來改善店內定位。節日期間，我們也將加強珠寶業務。

The third area is our legacy home offering. During the first quarter, select areas within our home business underperform with softness in the Kitchen Electrics, Floor Care, embedding. To improve results, we are increasing newness and kitchen electrics, as well as introducing new brands and ensuring we are providing excellent value to our customers across setting and floor care. And lastly, it's important that we continue to drive traffic across our omnichannel platform.

第三個領域是我們的傳統住宅產品。第一季度，我們家居業務的部分領域表現不佳，廚房電器、地板護理、嵌入等領域表現疲軟。為了改善結果，我們正在增加新產品和廚房電器，並引入新品牌，確保我們在環境和地板護理方面為客戶提供卓越的價值。最後，重要的是我們要繼續推動全通路平台的流量。

In Q1, store sales slightly outperformed digital sales, though both decline, given the headwinds I discussed. However, transaction in each channel improve as we move past the clearance headwind. Looking ahead, we expect store performance to benefit from our growth initiatives, which are highly that highlighted in stores.

在第一季度，商店銷售略優於數位銷售，儘管考慮到我所討論的不利因素，兩者均有所下降。然而，隨著我們克服清倉逆風，每個管道的交易都會有所改善。展望未來，我們預計商店業績將受益於我們的成長舉措，這在商店中得到了高度重視。

In digital, we will continue to reinforce our value simplification in our communication and scale new targeting initiatives, while also improving the search and product recommendation capabilities of our site to drive increased traffic and higher conversion. I will now summarize my comments today and I want to leave you with three things.

在數位領域，我們將繼續加強溝通中的價值簡化，並擴大新的定位計劃，同時改善我們網站的搜尋和產品推薦功能，以增加流量和更高的轉換率。我現在總結一下我今天的評論，我想給你們留下三件事。

First, our Q1 results were not up to our expectations. Clearance was a major headwind to overall comparable sales and demand softened in late March and into April, especially for our spring seasonal product.

首先，我們第一季的業績沒有達到我們的預期。清倉是整體可比銷售的主要阻力，3 月底和 4 月需求疲軟，特別是對於我們的春季季節性產品。

However, a regular price sales increased low single digits, and we are actively addressing the areas of opportunity identified in the quarter. Importantly, the clearance headwind is now behind us, and we have confidence in our ability to address the opportunities we laid out.

然而，正常價格銷售成長較低個位數，我們正在積極解決本季發現的機會領域。重要的是，清倉逆風現已過去，我們對抓住機會的能力充滿信心。

Second, many key areas of our strategy are working. Sephora Kohl's has maintained its strong growth momentum, and we are driving incremental sales and on the core gifting and impulse. And we are seeing positive underlying trends in our women's business.

其次，我們策略的許多關鍵領域正在發揮作用。絲芙蘭·科爾 (Sephora Kohl's) 保持了強勁的成長勢頭，我們正在推動增量銷售以及核心禮品和衝動。我們看到女性業務呈現出正面的潛在趨勢。

And during the balance of the year, we will open more than a 100 additional Sephora shops expand in Paul's queuing lines to an additional 250 stores and launch our Babies R Us partnership and 200 stores in online. For these reasons, we remain confident in our strategic initiatives.

在今年剩下的時間裡，我們將在 Paul 的排隊隊伍中另外開設 100 多家絲芙蘭商店，數量將增加到 250 家，並推出我們的 Babies R Us 合作夥伴關係和 200 家線上商店。基於這些原因，我們對我們的策略舉措仍然充滿信心。

And third, the underlying structure of our business remain sound, while we work to drive top-line sales growth, we are managing inventory margin effectively, expanding gross margin, and tightly controlling expenses. We are also demonstrating our commitment to returning capital to shareholders through the dividend and strengthen the balance sheet by reducing long-term debt.

第三，我們的業務基礎架構依然健全，在努力推動營收成長的同時，我們有效管理庫存利潤，擴大毛利率，嚴格控制費用。我們也表明我們致力於透過股利向股東返還資本，並透過減少長期債務來加強資產負債表。

Reposition of business of this size is not a simple task, and I want to recognize our associates across stores, distribution centers and corporate for their continued resilience and dedication to improving Kohl's results.

重新定位如此規模的業務並不是一項簡單的任務，我想對我們在商店、配送中心和公司的員工表示認可，感謝他們持續的韌性和致力於改善 Kohl's 業績的奉獻精神。

I will now turn over the call to Jill to discuss our first quarter results and outlook for 2024.

我現在將電話轉給吉爾，討論我們第一季的業績和 2024 年的前景。

Thank you, Tom, and good morning, everyone. For today's call, I'll provide additional detail on our first quarter results, as well as an update on our fiscal year 2024 guidance. Net sales decreased 5.3% in Q1. Comparable sales declined 4.4%.

謝謝你，湯姆，大家早安。在今天的電話會議中，我將提供有關第一季度業績的更多詳細信息，以及 2024 財年指導的最新信息。第一季淨銷售額下降 5.3%。可比銷售額下降 4.4%。

As Tom indicated, clearance for the significant headwinds in the first quarter, representing more than a 600 basis point drag and comp sale. Store slightly outperformed digital on the quarter with solid down to last year.

正如 Tom 所指出的，第一季的重大阻力已被清除，這意味著拖累和比較銷售超過 600 個基點。本季實體店的表現略優於數位店，與去年相比表現穩定。

Other revenue, which is primarily our credit business, decreased 5.7% in the first quarter. Loss rate increased year-over-year, in line with our expectation. Now let me turn to the rest of the P&L. Gross margin in Q1 was 39.5%, an increase of 48 basis points. The improvement year-over-year was driven primarily by strong inventory management and lower freight expense.

其他收入（主要是我們的信貸業務）第一季下降了 5.7%。虧損率較去年同期上升，符合我們的預期。現在讓我談談損益表的其餘部分。第一季毛利率為39.5%，成長48個基點。年比改善主要得益於強大的庫存管理和較低的運費。

SG&A expenses declined approximately 1% to $1.2 billion in the first quarter. As we continue to control expenses tightly across the organization, while also investing in marketing and our new growth initiatives, including new Sephora shops and impulse queing line. Depreciation expense in the first quarter was $188 million, flat to last year.

第一季的 SG&A 費用下降約 1%，至 12 億美元。我們繼續嚴格控制整個組織的開支，同時也投資於行銷和新的成長計劃，包括新的絲芙蘭商店和衝動排隊。第一季折舊費用為 1.88 億美元，與去年同期持平。

Interest expense of $83 million in a quarter declined down $1 million from last year. Net loss for the quarter was $27 million and loss per diluted share was $0.24. Now onto the balance sheet and cash flow. We ended Q1 with $228 million of cash and cash equivalents. Inventory at quarter end declined 13% compared to last year.

第一季利息支出為 8,300 萬美元，比去年減少 100 萬美元。本季淨虧損為 2,700 萬美元，攤薄後每股虧損為 0.24 美元。現在我們來看看資產負債表和現金流量。第一季結束時，我們擁有 2.28 億美元的現金和現金等價物。季末庫存較去年下降 13%。

And we have discussed in past quarter, inventory management has been a key focus of ours with the goal of increasing churn, which we are able to do in the first quarter. Our new disciplines once again allowed us to operate with greater flexibility and manage inventory more efficiently. Operating cash flow with the use of $7 million significantly better than last year's use of $202 million driven by effective inventory management. And adjusted free cash flow with negative $154 million in the first quarter.

我們在上個季度討論過，庫存管理一直是我們的重點，其目標是增加客戶流失率，我們能夠在第一季做到這一點。我們的新規則再次使我們能夠以更大的靈活性運作並更有效地管理庫存。在有效的庫存管理的推動下，營運現金流使用了 700 萬美元，明顯優於去年使用的 2.02 億美元。第一季調整後自由現金流為負 1.54 億美元。

Now I will provide an update on our capital allocation priorities. Capital expenditures for the quarter were $156 million. For the full year 2024, we continue to expect CapEx to be approximately $500 million, which includes investment in impulse queuing line (inaudible) opening the launches of Babies R Us, partnership and new store openings.

現在我將提供有關我們資本配置優先事項的最新資訊。該季度的資本支出為 1.56 億美元。對於 2024 年全年，我們仍然預計資本支出約為 5 億美元，其中包括對推出 Babies R Us 的脈衝排隊線（聽不清楚）、合作夥伴關係和新店開業的投資。

Strengthening the balance sheet and returning capital to shareholders also remain top priorities. We ended the first quarter with $355 million on our revolver, down from $765 million last year. Our goal in 2024 and in paying down our revolver balance, rebuilding our cash position and capitalizing an opportunities to reduce debt.

加強資產負債表和向股東返還資本仍然是首要任務。第一季結束時，我們的左輪手槍銷售額為 3.55 億美元，低於去年的 7.65 億美元。我們的目標是 2024 年償還我們的左輪餘額、重建我們的現金狀況並利用減少債務的機會。

Earlier this month, we provided notice to the holders at our May 2025 notes, that we will be executing a make whole call online in mid June. As a result, we will take out the (inaudible) notes totaling $113 million, which will result in an approximate $4.5 million pre-tax charge by $0.03 per diluted share in Q2.

本月早些時候，我們在 2025 年 5 月票據中向持有人發出通知，我們將在 6 月中旬在線執行全盤看漲期權。因此，我們將扣除總額為 1.13 億美元的（聽不清楚）票據，這將導致第二季稀釋每股 0.03 美元的稅前費用約為 450 萬美元。

For subsequent interest savings bank borrowing. It's actually not only lowers the average interest rate on outstanding debt, but also reduces the amount of maturities coming due in 2025, expect to end the year with $1.5 billion in total debt. Looking ahead, we'll continue to monitor action with respect to the July 2025 notes and will likely attract them closer to maturity, given the favorable coupon rate.

用於後續儲蓄銀行借款的利息。它實際上不僅降低了未償債務的平均利率，還減少了 2025 年到期的債務金額，預計到年底債務總額將達到 15 億美元。展望未來，我們將繼續關注 2025 年 7 月票據的走勢，鑑於優惠的票面利率，可能會吸引它們接近到期日。

As for shareholder return, maintaining our dividend at current level remains a priority. In Q1, we distributed $55 million in dividends to our shareholders, as previously disclosed before, on May 15, declared a quarterly cash dividend of $0.5 per share, payable to shareholders on June 26.

至於股東回報，將股利維持在目前水準仍是首要任務。在第一季度，我們向股東派發了 5,500 萬美元的股息，正如先前披露的那樣，5 月 15 日宣布季度現金股息為每股 0.5 美元，將於 6 月 26 日支付給股東。

Now let me share some detail on our updated outlook for 2024. As you heard this morning, we are making progress against many of our key strategic initiatives. We are also working to address several FX. Can you identify in Q1. We are approaching their financial outlook for the year and more conservatively in the first quarter underperformance and the ongoing uncertainty in the consumer environment.

現在讓我分享一些有關 2024 年最新展望的細節。我們還在努力解決一些外匯問題。你能在Q1中辨識出來嗎？我們正在接近他們今年的財務前景，並且在第一季表現不佳以及消費者環境持續存在不確定性時更加保守。

For the full year, we currently expect net sales to be in the range at 2% decrease to a 4% decrease versus 2023. Comparable sales to be in a range of a 1% decrease to 3% decrease. This implies a comp of flat to down 2% for the balance of the year. We continue to expect gross margins to expand 40 to 50 basis points and SG&A dollars were down 1% to 1.5% for the year.

就全年而言，我們目前預計淨銷售額將較 2023 年下降 2% 至 4%。這意味著今年剩餘時間的綜合成本將持平或下降 2%。我們繼續預計今年毛利率將擴大 40 至 50 個基點，SG&A 美元將下降 1% 至 1.5%。

We expect operating margins be in the range of 3% to 3.5% and EPS to be in the range of $1.25 to $1.85. As a reminder, our guidance includes the potential impact from the CFPB [late febrile], assuming August 1.

我們預計營業利潤率將在 3% 至 3.5% 之間，每股收益將在 1.25 美元至 1.85 美元之間。提醒一下，我們的指導意見包括 CFPB [發燒晚期] 的潛在影響（假設 8 月 1 日）。

Well, this rule is currently being challenged. We will continue to monitor developments. I will provide an update when appropriate and et cetera. In closing, I want to reiterate that our underlying financial structure remains solid.

嗯，這條規則目前正受到挑戰。我們將繼續關注事態發展。我將在適當的時候提供更新等等。最後，我想重申，我們的基本財務結構仍然穩固。

We are expanding gross margin through effective inventory management and managing expense with discipline. And we continue to strengthen our balance sheet by reducing long-term debt.

我們透過有效的庫存管理和嚴格的費用管理來擴大毛利率。我們繼續透過減少長期債務來強化我們的資產負債表。

With that, Tom and I are happy to take your questions at this time.

至此，湯姆和我很高興此時回答你們的問題。

(Operator Instructions) Rober Drbul, Guggenheim.

（操作員說明）Rober Drbul，古根漢。

Hi, good morning. Tom, I was just wondering, if you just talk some more just around the, I guess, the general confidence in the strategy on a go-forward basis. I think when you think is some of the in some of the challenges that you're saying can within the (inaudible) business and even within the industry?

早安.湯姆，我只是想知道，您是否能再談談我想，對未來策略的普遍信心。我想當你認為你所說的一些挑戰可能出現在（聽不清楚）業務甚至產業內？

Okay. As the prepared remarks, I indicated we feel very good about what we have in terms of our overall strategy. We're going to tweak things along the way. I think when you look at the first quarter results, the clearance, the headwind really hurt us 600 basis points.

好的。正如準備好的發言一樣，我表示我們對我們的整體策略感到非常滿意。我們將一路調整事情。我認為，當你看看第一季的業績時，清倉、逆風確實讓我們損失了 600 個基點。

So we had a strong performance in our regular price business, which obviously is important, especially sport go forward. But, fundamentally out things that are working as part of our strategy is supposed to working very well with a 60% total growth and 20% comp. We've done very well in categories in the home, which are part of our major strategies like seasonal and everyday the core.

因此，我們在正常價格業務中表現強勁，這顯然很重要，尤其是在運動方面。但是，從根本上說，作為我們策略一部分的事情應該會很好地實現 60% 的總成長和 20% 的競爭。我們在家居品類方面做得非常好，這是我們主要策略的一部分，例如季節性和日常核心。

Our pet business is good. Our gifting business has good. Impulse is good. We've made a lot of progress in our apparel businesses by growing the Pulse casual and dress business really across the board. Our value strategies are working a high volume.

我們的寵物生意很好。我們的禮品生意很好。衝動是好的。透過真正全面發展 Pulse 休閒和正裝業務，我們在服裝業務方面取得了巨大進展。我們的價值策略正在大量發揮作用。

Pricing has worked very nicely. We've gotten a lot of positive feedback from our customers have come. And we're doing a good job on managing our inventories than expense. And so those fundamentals are still in place.

定價工作非常有效。我們從客戶那裡得到了很多正面的回饋。我們在庫存管理方面做得比費用管理方面做得更好。因此，這些基本原則仍然存在。

And Jill talked about producing a long term debt, but we have worked to develop candidly. Even though we feel our of our strategy is a good one, but we need to do a better job in rebuilding our active business. It's one of our priorities overall. The accessory business, our jewellery business, there's a huge, huge opportunity for us .

吉爾談到了產生長期債務，但我們一直在努力坦誠地發展。儘管我們認為我們的策略是好的，但我們需要在重建活躍業務方面做得更好。這是我們總體的優先事項之一。配件業務，我們的珠寶業務，對我們來說有一個巨大的機會。

We've lost a lot of business with the support rollout overall and some of the legacy businesses and homes such as a floor care, embedding a kitchen electrics to underperform. So we're working hard on that to bring in more newness in that.

由於整體支援的推出，我們失去了許多業務，一些傳統業務和家庭（例如地板護理、嵌入廚房電器）表現不佳。因此，我們正在努力為此帶來更多新鮮感。

And then we're working hard to to drive traffic in stores and in digital. So, but, long, long answer, but we feel good. We feel good about what's happening and we feel good that the clearance headwinds, we took it upon a smart markdowns in the fourth quarter of '22 to clean all the inventory up. So that obviously that was a huge headwind for us in the first quarter.

然後我們正在努力增加商店和數位領域的流量。所以，但是，很長很長的答案，但我們感覺很好。我們對正在發生的事情感到滿意，並且對清倉逆風感到滿意，我們在 22 年第四季度進行了明智的降價以清理所有庫存。因此，這顯然對我們第一季來說是一個巨大的阻力。

Great, thank you very much.

太好了，非常感謝。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Hi, Tom, Jill. A very helpful comments on. Why you think the clearance impact was worse than you had originally guided to. And as you think about the biggest needle movers going forward, it sounded like juniors, active apparel, jewelry. What will really drive the comp better as we think about guidance and what should happen sequentially in the back half?

嗨，湯姆，吉爾。非常有幫助的評論。為什麼您認為清理影響比您最初指導的更嚴重。當你想到未來最大的推動者時，聽起來像是青少年、運動服裝、珠寶。當我們考慮指導時，什麼才能真正推動比賽變得更好，以及後半段應該依次發生什麼？

And a follow up with your comp guidance for the quarter, what's the assumed for June and July relative to May? And are you thinking that traffic will be negative, positive or flattish? Thank you.

接下來是本季的比較指導，六月和七月相對於五月的假設是什麼？您認為流量會是負數、正數還是持平？謝謝。

So I'll start and just for clarification. It wasn't clear insight. I think we got around and the guide. It was a big headwind in the quarter. I think that was unique to us. And what we did, we started the quarter while at the right price business, incredibly strong, offsetting the clearing headwind.

所以我將開始並只是為了澄清。沒有清晰的洞察力。我想我們和導遊都繞過去了。這是本季的一大阻力。我認為這對我們來說是獨一無二的。我們所做的是，我們在本季開始時以適當的價格開展業務，業務非常強勁，抵消了清算的逆風。

And so as we came out of the market, we felt really good initiatives and the momentum behind those to help offset clearance. As we moved into the latter part, the late part of March and into April, we saw a slowdown there, right price selling, particularly around spring seasonal goods.

因此，當我們退出市場時，我們感受到了非常好的舉措以及這些舉措背後的動力，有助於抵消清倉。當我們進入下半年、三月下旬和四月時，我們看到銷售放緩，價格合適，尤其是春季季節性商品。

And that became the headwind that we couldn't overcome to get back into that flattish comp that we had guided to in. So that really is what happened in the quarter. I think fundamentally the company still did well. We manage the inventory when that a lot of new discipline in the past, we want to add to being down 13% and inventory when we saw the sales decline really is a testament to that new muscle that we have that obviously helped drive our margin and we are able to hit our margin and then we pulled back on expenses.

這成為我們無法克服的逆風，無法回到我們所引導的扁平化競爭中。我認為從根本上來說，公司的表現還是不錯的。我們管理庫存時，過去有很多新的紀律，我們希望增加下降13% 的庫存，當我們看到銷售額下降時，庫存確實證明了我們擁有的新力量，這顯然有助於提高我們的利潤率而我們能夠達到我們的利潤率，然後我們削減開支。

Our expenses actually came in better than we had anticipated because, we are able to react. So I think that just goes to the testament of IT organization and the agility we have when we do have some businesses on the top line that really came that regular-price slowdown.

我們的支出實際上比我們預期的要好，因為我們能夠做出反應。因此，我認為這證明了 IT 組織和我們所擁有的敏捷性，因為我們確實有一些業務確實在正常價格放緩的情況下實現了盈利。

So if I got a comp guide and for Q2, obviously not going to speak to the monthly our guiding. But what I would say is when we saw improvement in our business, once we got through the clearance impact, we saw a lot of that comes through our traffic and transactions, and that was actually relatively flat as we went into March and April.

因此，如果我得到第二季的補償指南，顯然不會談論我們每個月的指導。但我想說的是，當我們看到我們的業務有所改善時，一旦我們克服了清關影響，我們看到很多都是透過我們的流量和交易來實現的，而進入三月和四月時，情況實際上相對持平。

So we do see that we are gaining those steps and the momentum, but we also know the company, the customer as a little bit more discerning out there that we have to make sure are putting our first best step forward with that value, which you know calls is known for, and that's what we're going to go ahead and do.

因此，我們確實看到我們正在取得這些步驟和動力，但我們也知道公司、客戶更加挑剔，我們必須確保我們朝著這一價值邁出了最好的第一步，您知道電話是眾所周知的，這就是我們將繼續做的事情。

May did start out well for like April ended. But what I will say is that we are progressing. We're seeing ourselves pick up, particularly in that spring season doesn't coming a little bit later. We can continue to see the momentum in the strategic initiatives that Tom has outlined.

五月的開局確實不錯，就像四月結束時一樣。但我要說的是，我們正在進步。我們看到自己正在好轉，特別是在春天即將到來的時候。我們可以繼續看到湯姆概述的策略舉措的勢頭。

And that's what's really helping us drive back to the rest of the year will be flat to down to, but we're still being mindful of the uncertainty in the consumer and the macro environment.

這才是真正幫助我們回到今年剩餘時間的原因，但我們仍然關註消費者和宏觀環境的不確定性。

Yes. And to answer the question about what's going to drive the comps, as I mentioned before, Sephora is going to help us a lot on the balance of 140 shops will be rolled out by the end of the other second quarter. So that should help us collide.

是的。為了回答什麼將推動競爭的問題，正如我之前提到的，絲芙蘭將為我們提供很大幫助，到第二季末將推出其餘 140 家商店。所以這應該有助於我們碰撞。

Building on our underpenetrated category, as I mentioned before, the core business is up 30%. That was up [150] and up [30] impulse up [60.] We opened up [100], impulse queuing lines in the first quarter. We have another [50] that were rolling out in the second quarter in [200] in the third quarter.

正如我之前提到的，在我們滲透不足的類別的基礎上，核心業務成長了 30%。那是上漲[150]和上漲[30]脈衝上漲[60]。我們在第二季推出了另一個 [50]，在第三季推出了 [200]。

So obviously that based on the performance of that, that'll be good. We're doing well in juniors from a regular price perspective with all the new model, but brands that we're introducing, the women's dress business has been very, very strong. Men's suitings has been very good as well.

顯然，根據其性能，這會很好。從常規價格的角度來看，我們所有新款式的青少年服裝都表現良好，但我們推出的品牌中，女裝業務一直非常非常強勁。男士西裝也非常好。

One of the things that we're working diligently on, as I mentioned, is how to rebuild our active business to the level that we wanted to be. But it was really negatively impacted by a significant amount of clearance in the first quarter as well.

正如我所提到的，我們正在努力工作的事情之一是如何將我們的活躍業務重建到我們想要的水平。但第一季的大量清倉也確實對其產生了負面影響。

We ended inventories at the end of '22 high inactive on. But we have a lot of things that are working that are going to help the comps overall. And obviously we are working diligently on that.

我們在 22 年底結束了庫存，處於不活躍狀態。但我們有很多正在發揮作用的事情將有助於整個比賽。顯然我們正在為此努力。

Thank you. Best regards.

謝謝。此致。

Thanks, Oliver.

謝謝，奧利佛。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Good morning. Thank you for taking my questions. So the 600 basis point headwind on the lower clearance. How much of that would you categorize as somewhat onetime as somewhat once you cycled last year's actions? And how should we think about that moving forward? I guess you continue to manage inventory very lean.

早安.感謝您回答我的問題。因此，600 個基點的逆風影響了較低的清倉。如果你回顧去年的行動，你會把其中有多少歸類為「一次性」和「一次」？我們該如何思考這一點？我猜你會繼續非常精實地管理庫存。

So would it be fair to think that reduced clearance product availability would be a headwind moving forward? And then bigger picture, do you think you're losing a cohort of your customer base to other retailers as you manage to this much lower level of clearance product? And what are you doing to engage that customer and make sure they still see value in the overall assortment, but that clearance product no longer being there to such an extent.

那麼，可以公平地認為，清倉產品供應量的減少將成為未來發展的阻力嗎？然後從更大的角度來看，當您設法獲得如此低的清倉產品水平時，您是否認為您正在將一群客戶群流失到其他零售商手中？您正在做什麼來吸引該客戶並確保他們仍然看到整個分類的價值，但清倉產品不再存在到這種程度。

Well, first of all, the clearance levels going into '23 totally unique. It was a once-in-a-lifetime government clearance level because of trying to clean everything up as we went into '23. So it's highly distorted. As a percentage total of our business it was obviously larger than ever. So we never want to get to that level. We want to sell the appropriate amount of clearance, but we're focused on regular price as well.

嗯，首先，進入 23 年的許可證等級是完全獨特的。這是一個千載難逢的政府許可級別，因為我們在進入 23 世紀時試圖清理一切。所以它是高度扭曲的。作為我們業務總量的百分比，它顯然比以往任何時候都大。所以我們永遠不想達到那個水準。我們希望出售適當數量的清倉貨，但我們也關注正常價格。

But the situation going into '23 was totally unique and we're never going to get to those levels. It's always going to be part of our business. But reducing our inventories overall in as we are down 13% at the end of the first quarter.

但進入 23 年的情況是完全獨特的，我們永遠不會達到那樣的水平。它永遠是我們業務的一部分。但我們的庫存總體有所減少，第一季末庫存下降了 13%。

We're not going to have as much clearance and we're going to work to go after the customer with building our support business and building our underdeveloped, underpenetrated categories and home. We're going to go after gifting, we're going to go after impulse. We're going to continue to broaden our mix and apparel to include even more polished casual and dress.

我們不會有太多的許可，我們將努力建立我們的支援業務並建立我們欠發達、滲透不足的類別和家園來滿足客戶的需求。我們將追求禮物，我們將追求衝動。我們將繼續擴大我們的產品組合和服裝，包括更精美的休閒裝和正裝。

So we have a lot more than clearance. You don't want to pivot or we just don't want to have a business that has a underlying huge clearance position because, that just shows, I mean, those are mistakes. So you want to focus on on regular price business.

所以我們擁有的不僅僅是許可。你不想轉向，或者我們只是不想擁有一家擁有潛在巨大清倉頭寸的企業，因為，這只是表明，我的意思是，這些都是錯誤。所以你想專注於正常價格業務。

Yes, I think just to summarize it, I would assess the whole 600 mark as it relates to analyze. And to Tom's point, coming off of what I would say is a highly unique one-time situation and clear at the inventory. And we're going to have the regular balances of clearance going forward. So I think it's not a headwind, it's on tailwind because it's just, as Tom mentioned, part of the business.

是的，我想總結一下，我會評估與分析相關的整個 600 分。就湯姆而言，擺脫我所說的情況是一種非常獨特的一次性情況，並且庫存一目了然。今後我們將定期進行清算餘額。所以我認為這不是逆風，而是順風，因為正如湯姆所提到的，這只是業務的一部分。

And that's really how we looked at it when we gave the guidance. I think the other thing is the newness we are bringing in and it's really working. And that's really that discovery element that we're bringing with it market brand and having a faster turn, which we were able to improve our return quite significantly in the quarter and that's really what we're looking to do with making the right price inventory work harder for us to better margins, they can deliver newness more frequently.

當我們提供指導時，這確實是我們的看法。我認為另一件事是我們引入的新事物並且它確實有效。這確實是我們帶來的市場品牌和更快的轉變的發現元素，我們能夠在本季度顯著提高我們的回報，這確實是我們希望透過製作正確的價格庫存來實現的為我們更加努力地工作以獲得更好的利潤，他們可以更頻繁地提供新鮮事物。

So it's really just a better model that we are moving into, which will be a healthier business for us to be in and really deliver for the customer, but not for lack of value. We're still going to have value, we're starting to find and the clearance racks are going to find that when you come in and sign new brands, brands are not expecting and having it at a great pride.

因此，這實際上只是我們正在進入的一個更好的模式，這對我們來說將是一個更健康的業務，並真正為客戶提供服務，但並不是因為缺乏價值。我們仍然會有價值，我們開始發現，清倉貨架上會發現，當你進來簽下新品牌時，品牌不會期待並對此感到非常自豪。

Thank you. And Jill, with the reduced comp outlook for the year, can you speak to any incremental opportunities you see on the cost side of the equation? And then is the 78% still the right way to think about longer term, any open bridging the kind of that 400 basis point expansion versus what you're planning for this year? Thank you.

謝謝。吉爾，隨著今年的薪酬前景下調，您能談談您在成本方面看到的任何增量機會嗎？那麼，從長遠來看，78% 是否仍然是正確的考慮方式？ 與您今年計劃的 400 個基點擴張相比，任何開放式的橋樑？謝謝。

Absolutely. I think we held our margins, so we are selling on the [40] and [50], which I think puts us at that [37] mark, which we spoke about as being at the high end of that bridge and the 78%, we feel really confident with that.

絕對地。我認為我們保持了利潤，所以我們在 [40] 和 [50] 上出售，我認為這使我們處於 [37] 標記，我們所說的處於該橋的高端和 78% ，我們對此非常有信心。

I mean, everything on inventory and ranked price selling is really helping us continuing to drive the margin. And that's really what you're going to continue to see a 22 organizations. I feel very good with the margin we held that guide. It was in the 78% framework that we outlined a couple of years ago.

我的意思是，庫存和排名價格銷售方面的一切確實有助於我們繼續提高利潤。這確實是您將繼續看到的 22 個組織。我對我們持有該指南的優勢感到非常滿意。這是我們幾年前概述的 78% 框架。

From an SG&A perspective, you saw the numbers came in better for Q1. We did say they'd be down in that 1.5 range and for the rest of the year. So we know we're going to pull back commensurate with the sales being down. It's something that we're really getting calls. We have a great cost disciplined culture. We are always looking for operational efficiencies across the organization.

從 SG&A 的角度來看，您看到第一季的數字更好。我們確實說過，在今年餘下的時間裡，它們的成長率將保持在 1.5 的範圍內。所以我們知道，隨著銷售額的下降，我們將相應地縮減規模。這是我們確實接到的電話。我們擁有嚴格的成本紀律文化。我們始終致力於提高整個組織的營運效率。

And so this is where will play into that game or pullback on some of these expenses. We are still going to invest, invest in growth initiatives. So as Tom mentioned, we're rolling out the impulse lines. We're going to do Babies R Us, and we have the Sephora shops, those are important. And so we're going to make sure that we're putting the expenses, whether we're going to get that return back.

因此，這就是這場遊戲或削減其中一些費用的地方。我們仍然會投資，投資於成長計劃。正如湯姆所提到的，我們正在推出脈衝線。我們要做Babies R Us，我們還有絲芙蘭商店，這些都很重要。因此，我們將確保我們投入了這些費用，無論我們是否能收回回報。

And those are key projects that are going to be drivers for sales as we move forward. The big piece of getting back to 78% right now is going to be growth and that is really a huge focus of what we're looking at. A lot of initiatives like we mentioned are working, but we also are addressing the fact that we have opportunity needs and we are well versus what those opportunities and we're working towards correcting those.

這些都是關鍵項目，隨著我們的前進，它們將成為銷售的驅動力。現在恢復到 78% 的重要部分將是成長，這確實是我們關注的一個重點。我們提到的許多舉措正在發揮作用，但我們也在解決這樣一個事實：我們有機會需求，而且我們很好地應對這些機會，我們正在努力糾正這些機會。

And when we get back to growth, that's when you're going to see that margin expansion happen. But it will obviously take some time.

當我們恢復成長時，你會看到利潤率擴張。但這顯然需要一些時間。

Thank you and best of luck.

謝謝你，好運。

Mathew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Great. Thanks. Hey, so Tom, could you elaborate maybe on first quarter trends that you saw at stores versus digital? And how best to think about the sequential cadence across channels that you're expecting in the second quarter versus back half of the year?

偉大的。謝謝。嘿，湯姆，你能詳細說明一下你在商店和數位商店看到的第一季趨勢嗎？如何最好地考慮您預計第二季與今年下半年的跨通路順序節奏？

And then Jill, I just wanted to circle back on trends that you cited in May relative to what you saw in March and April with reg price selling?

然後吉爾，我只是想回顧一下您在 5 月提到的趨勢，以及您在 3 月和 4 月看到的以常規價格出售的情況？

As far as the digital to stores, our business, we're closing the gap, as you know, stores way outperform digital last year. And then the first quarter, they were much closer together. Going forward and incorporated in our guidance is the fact that we see digital and stores performing at the same similar levels in terms of time.

就數位商店而言，我們的業務正在縮小差距，正如你所知，去年商店的表現遠遠好於數位商店。然後第一節，他們的距離就更近了。展望未來並納入我們的指導的是，我們看到數字和商店在時間方面表現相同。

Although heavy promotions that we did previously are behind now. And now it's obviously normalizing and we should see digital and stores come together.

雖然我們之前做的大力促銷現在已經落後了。現在它顯然正在正常化，我們應該看到數字和商店結合在一起。

And then in terms of the trends for me, I think we are really past the clearance component of that, Matt and February and early March. So as we saw the softening in late March and April, I think that's really the regular price business, the core business, I mean, clearance is a small percentage once they get through the beginning part of the quarter.

然後就我的趨勢而言，我認為我們確實已經過了馬特、二月和三月初的清倉部分。因此，當我們看到三月下旬和四月的疲軟時，我認為這實際上是正常價格業務，核心業務，我的意思是，一旦他們度過了本季度的初期，清倉率就很小了。

And like I mentioned, we saw this office progress into May, but we are seeing progress and improvement as the month has gone on, particularly in that spring seasonal. It's coming a little bit later, but it's coming. And then the momentum that we've called out to Flora from the core gifting impulse continuing to fill and be very productive.

就像我提到的，我們看到這個辦公室在五月取得了進展，但隨著這個月的過去，我們看到了進步和改善，特別是在那個春季。雖然來得有點晚，但還是來了。然後，我們從核心禮物衝動中向弗洛拉呼籲的勢頭繼續充滿並非常富有成效。

Those were making some of the correction that Tom mentioned, particularly like newness start setting and small electrics leaning into some more value in that space as well around home. And then impulse line will have more of them. We longer (inaudible) Sephora shops that will be opening in Q2.

這些正在做出湯姆提到的一些修正，特別是像新的啟動設置和小型電器傾向於在該空間以及家庭周圍具有更多價值。然後脈衝線將會有更多。我們將在第二季開業更長（聽不清楚）的絲芙蘭商店。

And then you have Babies R Us that really is Q3 and never lost a lot of newness and on a new initiatives coming in front of us as well. That helps give us confidence in that flat to down Q4 the rest of the year.

然後還有《Babies R Us》，它確實是第三季的產品，從未失去很多新鮮感，而且我們面前也有新的舉措。這有助於增強我們對今年剩餘時間第四季持平甚至下降的信心。

Great. And then, Jill, just with the operating margin setback for this year's guide, is there any change to longer term that the 7% to 8% or do you see today's change is more transitory?

偉大的。然後，吉爾，隨著今年指南的營業利潤率下降，從長遠來看，7% 到 8% 是否有任何變化，或者您認為今天的變化是否更為短暫？

I would say there's not a change. We do believe we can get to 7% to 8%. I think a couple of things. Obviously, whenever we do have the CFPB legislation beginning in August in our number, we think that we have offset that we're working for us, but obviously, when you initially when we have more clarity on that.

我會說沒有改變。我們確實相信我們可以達到 7% 到 8%。我認為有幾件事。顯然，每當我們確實在 8 月開始實施 CFPB 立法時，我們都認為我們已經抵消了我們正在為我們工作的影響，但顯然，當您最初我們對此有更清晰的了解時。

We will give an update. But at this point in time, I think you know, so a lot of uncertainties that remains in the quarter with them, that's one step back. But I think we can get to 7% to 8%, like I mentioned already at [30] over [37] for our gross margins. That was above the bracket.

我們將提供最新情況。但在這個時候，我想你知道，所以本季仍然存在著許多不確定性，這是退一步。但我認為我們可以達到 7% 到 8%，就像我在 [30] 和 [37] 中提到的我們的毛利率。那是在支架上方。

As you can see in SG&A, the discipline is there. I mean, our numbers are down year-on-year. I think if you look over the last several years, our SG&A really hasn't risen. We've held it despite the inflation among wages and salaries are products that we're putting into.

正如您在 SG&A 中看到的那樣，紀律就在那裡。我的意思是，我們的數字比去年同期下降。我認為，如果你回顧過去幾年，我們的銷售、管理費用（SG&A）確實沒有上升。儘管工資和薪水的通貨膨脹是我們投入的產品，但我們仍然持有它。

We've gotten that discipline. It really comes to growth. I think that's why the biggest focus here is how we continue to drive top line. And once we get that growth, the financial structure is sound and it's there and its readiness is that grows happens.

我們已經得到了這種紀律。它真的涉及到成長。我認為這就是為什麼這裡最大的焦點是我們如何繼續推動營收。一旦我們實現了成長，金融結構就會健全，而且它已經準備好，成長就會發生。

You're going to see that expansion from our operating margin perspective, but it will be more long term as we step into the growth and we can take advadintage of that. G

從我們的營業利潤率角度來看，你會看到這種擴張，但隨著我們步入成長，這將是更長期的，我們可以利用這一點。 G

Great color, best of luck.

顏色很棒，祝你好運。

Thank you.

謝謝。

Charles Grom, Gordon Haskett.

查爾斯·格羅姆，戈登·哈斯克特。

Thanks very much. Good morning. Just wanted to go in and talk about the help of your customer today across income cohorts. And then maybe if we could talk about trends across apparel and footwear in the quarter relative to down four. I don't know if you want to pocket regular versus clearance or if there's a way to split it out just to assess the health of those two parts of your business. Thanks.

非常感謝。早安.只是想談談今天不同收入群的客戶所提供的幫助。然後也許我們可以談談本季服裝和鞋類相對於下降四季的趨勢。我不知道您是否想將常規費用和清關費用收入囊中，或者是否有辦法將其分開，以評估您業務的這兩個部分的健康狀況。謝謝。

So I think, we know that customers are definitely feeling pressure. You have heard that across the retail space. Project for us continues to be that middle income customer that spends the most impacted. I think that's been a pretty consistent theme for us.

所以我認為，我們知道客戶肯定感受到了壓力。您在整個零售領域都聽說過這一點。我們的項目仍然是支出受影響最大的中等收入客戶。我認為這對我們來說是一個非常一致的主題。

So that's where we really have to lean into value for that customer and make sure we delivering than value, whether that be through newness of value are really through our core customers to enjoy the coupon or going into deeper pricing events that making sure they know that they can come at a scratch further. Another positioning is private brands. It provides an opening price point for us.

因此，這就是我們真正必須為客戶提供價值的地方，並確保我們提供的價值高於價值，無論是透過價值的新穎性，還是透過我們的核心客戶享受優惠券，或是進行更深層的定價活動，確保他們知道這一點他們可以更進一步。另一個定位是自有品牌。它為我們提供了一個開盤價。

So I think that's definitely a place that we can lean into from that perspective. We've done a lot with our key high value pricing. We were able to take some better pricing on our opening price point brands like [Jumping Beans and tech gear]. And as Tom indicated, we're really getting credit from a customer for delivering value as we go out and talk to them.

所以我認為這絕對是我們可以從這個角度傾斜的地方。我們在關鍵的高價值定價方面做了很多工作。我們能夠對我們的開盤價品牌（例如“跳躍豆和科技裝備”）採取更好的定價。正如湯姆所指出的，當我們出去與客戶交談時，我們確實因為提供了價值而獲得了客戶的信任。

And also in the quarter, our proprietary brand, our reg price business was flat. So we can see that it's really resonating with them as we move into that space and we're able to take those markdowns to happen. So, that's what we are really going to focus on and making sure that we can continue to deliver value to the customer because, we know at this point of time dollar has to be stretched a lot further. And particularly in that middle income customer who's really critical.

同樣在本季度，我們的專有品牌、我們的價格業務持平。因此，我們可以看到，當我們進入這個領域時，它確實引起了他們的共鳴，並且我們能夠採取這些降價措施。因此，這就是我們真正要關注的重點，並確保我們能夠繼續為客戶提供價值，因為我們知道目前美元必須進一步延伸。尤其是對於那些真正挑剔的中等收入客戶。

As far as trends go, we're seeing that just under this kind of put it all together between clearance and regular price. You know, we're seeing great trends and expanding the assortments in apparel to have more and more polished casual and dress up product. Overall, the customers are really looking for that. You know, people, people are going back to work. People are are obviously spending time on special occasions, et cetera.

就趨勢而言，我們看到，就在這種情況下，所有這些都介於清倉價和正常價格之間。您知道，我們看到了巨大的趨勢，並擴大了服裝的品種，推出了越來越精緻的休閒和正裝產品。總的來說，客戶確實在尋找這一點。你知道，人們、人們正在重返工作崗位。人們顯然會在特殊場合等待時間。

So not only is the polished casual and dress good in apparel. We're also doing well in the footwear business as well. So that full package is trending very well. The one area that's negatively impacting us from a trend perspective, as I mentioned, is our active business. We've done well with our own product, tech gear and Flex, but the balance of it, we have a lot of work to do in order to come to turn that business around overall.

因此，精緻的休閒裝和正裝不僅適合服裝。我們在鞋類業務方面也表現出色。所以這個完整的包趨勢非常好。正如我所提到的，從趨勢角度來看，對我們產生負面影響的一個領域是我們的活躍業務。我們在自己的產品、技術裝備和 Flex 方面做得很好，但總的來說，我們還有很多工作要做，才能全面扭轉業務。

We really think it is an important business. We don't think it should be in lieu of the polished casual and dress, but it's a big category and we're working on that a lot. Whenever we have some special things in our assortments, as I mentioned in home, that really helps us and the gifting business is really trending well.

我們確實認為這是一項重要的業務。我們認為它不應該取代精緻的休閒裝和正裝，但這是一個很大的類別，我們正在為此做很多工作。每當我們的分類中有一些特殊的東西時，正如我在家裡提到的那樣，這確實對我們有幫助，而且禮品業務的趨勢確實很好。

We've made a big emphasis in our stores on the gifting side a bit on like. Our Mother's Day business was very good. We anticipate a good Father's Day business, American up up product selling very well. Also, so the impulse thing, that's a big opportunity for us in the future and again, it's up like 60% already.

我們在商店裡非常重視送禮物，有點像。我們的母親節生意非常好。我們預期父親節生意會很好，美國up up產品賣得很好。而且，所以衝動的事情，這對我們來說是未來的一個巨大機會，而且它已經上漲了 60% 左右。

So that's pretty much the you know, the trends we're seeing, obviously, the beauty trend is huge as well. So that sort of sums it up.

這就是我們所看到的趨勢，顯然，美容趨勢也很大。總結起來就是這樣。

Yes, that's that's very helpful. Thank you, Tom.

是的，這非常有幫助。謝謝你，湯姆。

Just one for Jill on the model. Just how should we think about the cadence and phasing of comps over the balance of the year? Should we think about it somewhere in the down 1% to 3% range by quarter or are you anticipating Q4 to be a little bit lower because of the five fewer days?

模特兒上只有吉爾的一張。我們該如何考慮今年剩餘時間的比賽節奏和階段？我們是否應該考慮按季度下降 1% 至 3% 的範圍，或者您是否預計第四季度會因為少了 5 天而略有下降？

And then on credit, you may have touched on this earlier. I hopped on a couple of minutes late, or are you still anticipating down mid 10s dollar growth in '24? Thank you.

然後順便說一下，您可能之前已經提到過這一點。我遲到了幾分鐘，還是您仍然預計 24 年美元成長率會下降 10 多美元？謝謝。

I'll with the second line, we are there's no change from a credit perspective. It came right in line with our expectations. In terms of the quarter, we'll expect that we still include, as I mentioned, the CFPB legislation in that number. And that's obviously why it's down mid teens for the year. So the back half as much more down due to the time legislation assumption starting on August 1.

我想說的是，從信用角度來看，我們沒有任何改變。它完全符合我們的預期。就本季而言，正如我所提到的，我們預計該數字中仍包括 CFPB 立法。顯然，這就是今年該指數下降到十幾歲左右的原因。因此，由於時間立法假設從 8 月 1 日開始，後半部的下降幅度更大。

And then I think in terms of some of the cap cadences, we're not really giving, I think we feel really good with the flat to down to the. 'One thing that I would tell you is we do have new initiatives in front of us. And so as you think of Q2 to Q3 and then in holiday were opening up most of our shops in Q2. So that obviously would benefit partly Q2 in the back half of the year.

然後我認為就一些上限節奏而言，我們並沒有真正給予，我認為我們對持平到下降感覺非常好。 「我要告訴你的一件事是，我們面前確實有新的舉措。因此，當您想到第二季度到第三季度，然後在假期時，我們的大多數商店都在第二季度開業。因此，這顯然將在今年下半年的第二季部分受益。

Babies R Us really opening in that Q3 periods to help benefit in Q3 and then Q4. And then as we talked about with impulse, we'll have 50 stores in Q2 opening. And I think it's like a another 200 in Q3 rates to the 350 for the year. So that two in front of us. And then gifting just in general, I think, has been working. We've called it out in terms of Valentine's Day and Easter and Mother's Day.

《Babies R Us》在第三季真正開業，有助於在第三季和第四季受益。然後正如我們衝動地談到的，我們將在第二季開設 50 家商店。我認為這就像第三季的利率又提高了 200，而今年的利率是 350。所以我們前面有兩個。我認為，總的來說，送禮一直在發揮作用。我們用情人節、復活節和母親節來稱呼它。

So we're really taking advantage of all those periods. And I think we're getting better at it and having a much bigger presence in the stores and really resonated with customers now we can be found for those type of holidays and those types of guest,s. So particularly in the holiday period, I think you're going to see a much bigger set from that perspective, and that should be a benefit as well. So really leaning into those key initiatives.

所以我們確實在利用所有這些時期。我認為我們在這方面做得越來越好，並且在商店中擁有更大的影響力，並且真正引起了顧客的共鳴，現在我們可以找到適合這些類型的假期和這些類型的客人的產品。因此，特別是在假期期間，我認為從這個角度來看，您會看到更大的集合，這也應該是一個好處。因此，真正致力於這些關鍵措施。

And then I mean, I just want to call it the fact that our women's business direct business was up 3% and we haven't seen and talked about women's and juniors being positive in any sense in a long time. So really continuing to build off of that momentum as well. We have dress shops, like Tom have mentioned, in 700 stores, those that in Q1, but we're expanding them as we move into Q2.

然後我的意思是，我只想說這樣一個事實：我們的女性業務直接業務增長了 3%，而且我們已經很長一段時間沒有看到並談論過女性和青少年在任何意義上的積極態度了。因此，我們也確實繼續利用這股勢頭。正如湯姆所提到的，我們在第一季的 700 家商店中有服裝店，但隨著進入第二季度，我們正在擴大它們。

So I just think there's going to be some build as these initiatives come throughout the year. But I guess I'm not going to give you what that cadence looks like, I'll let you kind of discern how you feel it should be.

因此，我認為隨著這些措施全年的實施，將會有一些建設。但我想我不會告訴你那種節奏是什麼樣的，我會讓你辨別出你的感覺應該是什麼樣的。

Great, thank you. Appreciate it.

太好了謝謝。欣賞它。

Thank you.

謝謝。

Dana Telsey, Telsey Group.

達納‧特爾西，特爾西集團。

Hi, good morning, everyone. (inaudible) While ago you had talked about enhancements being made in stores, whether it's the queuing lines, anything you're seeing in stores with these strategic initiatives that is, that you expect to help as we go through the balance of the year.

嗨，大家早安。 （聽不清楚）剛才您談到了商店中正在進行的改進，無論是排隊隊伍，還是您在商店中看到的任何帶有這些戰略舉措的東西，即您希望在我們度過今年剩餘時間時提供幫助的東西。

Can you talk about the difference in performance of the digital channel versus the stores channel and what you're seeing? And I think you are thinking about it as remodels or downsize their new stores? How should we be thinking of that in light of the current environment? Thank you.

您能談談數位管道與商店通路的效能差異以及您所看到的情況嗎？我認為您正在考慮改造或縮小新店的規模？在當前的環境下，我們該如何思考？謝謝。

I'll the last question first. We are doing our regular rate maintenance on our stores this year. But we're not going have any major remodels or any resets in the stores, right? Right now focusing on the business in totality right now. So that's that's really key in the digital versus store business.

我先問最後一個問題。今年我們將對我們的商店進行定期價格維護。但我們不會對商店進行任何重大改造或重置，對吧？現在專注於整體業務。因此，這才是數位業務與實體店業務的真正關鍵。

We're really looking at them being comparable in terms of trends. There was a much shorter. There is a much smaller spread between digital and stores in the first quarter. It's we think going forward, they're going to perform at a similar level, as I mentioned earlier in the call

我們確實在考慮它們在趨勢上的可比性。還有一個更短的。第一季度，數位媒體和實體店之間的差距要小得多。我們認為，展望未來，他們將表現出類似的水平，正如我之前在電話會議中提到的那樣

Yes. And then I would just I would say we've talked a lot about in-store enhancements like you talked about, but there are things in digital that we're working on as well, which is why we think they'll really run more in parity. We're doing a lot of scaling initiatives around targeting initiatives in terms of when you run store on the site, if we're out of stock on something, how can we give you your next best choice.

是的。然後我想說，我們已經討論了很多關於店內增強功能的問題，就像您談到的那樣，但是我們也在研究數字方面的一些東西，這就是為什麼我們認為它們真的會運行更多平價。我們正在圍繞目標計劃開展大量擴展計劃，例如當您在網站上經營商店時，如果我們的某些商品缺貨，我們如何為您提供下一個最佳選擇。

A lot of this, we're using AI to help us power do that for doing more personalized, relevant content recommendations based on consumer behavior to really trying to work on that side of it from a conversion perspective.

在許多方面，我們都在使用人工智慧來幫助我們根據消費者行為進行更個人化、相關的內容推薦，並真正嘗試從轉換的角度進行這方面的工作。

And then we're improving our search and product recommendations are moving to a new platform there as well. So I think the enhancements we're bringing in store are also complemented with a lot of enhancements we're doing on the digital side, and that's why we think they can run more of (inaudible).

然後我們正在改進我們的搜索，產品推薦也正在轉移到一個新平台。因此，我認為我們帶來的增強功能也與我們在數位方面所做的許多增強功能相輔相成，這就是為什麼我們認為它們可以運行更多（聽不清楚）。

And then just to complete your question, you asked about new stores. I think we have five new stores this year that are opening [one relo]. What I would say is you're not going to see a lot in the news for new store space from us in this year or the coming years, I think really right now, we want to get that formula right in our stores.

然後為了完成你的問題，你詢問了新商店的狀況。我認為今年我們將開設五家新店[一家 relo]。我想說的是，今年或未來幾年，你不會在新聞中看到太多關於我們新店空間的消息，我認為現在，我們希望在我們的商店中採用這種模式。

We're making a lot of changes, a lot of enhancements. I do think you're going to see that smaller stores and move forward. But we have a lot of work to do there. I think within 1,200 stores we own today, so you won't see a lot of newness there until we get that formula right. And then we do think there is opportunity and I'll just be more in a long-term perspective.

我們正在進行很多改變，很多增強。我確實認為你會看到較小的商店並繼續前進。但我們在那裡還有很多工作要做。我認為我們現在擁有 1,200 家商店，所以在我們找到正確的公式之前，你不會看到太多新東西。然後我們確實認為有機會，我會更著眼於長遠。

To answer your first question. In-store improvements, as I mentioned earlier, the impulse business is really growing sub up 60%. We opened 100 queuing lines in the first quarter, doing 50 in the second quarter and 200 in the third quarter, and it's doing very well. And in over the next couple of years, we plan to roll it out to all of our stores, where it makes sense in general.

回答你的第一個問題。店內改進，正如我之前提到的，衝動業務確實成長了 60%。我們第一季開通了100條排隊線，第二季開通了50條，第三季開通了200條，效果非常好。在接下來的幾年裡，我們計劃將其推廣到我們所有的商店，一般來說這是有意義的。

We've really built the gift centers for much more robust than they have been before. We're taking the junior business and we're moving it from within the women's business to the front of the store, where it used to be, so that when the customer comes out of the Sephora shop, they walk right into juniors and we're working really hard and making sure that we have more trend product.

我們確實建造了比以前更強大的禮品中心。我們正在接管初級業務，並將其從女裝業務內部轉移到商店前面，也就是以前的位置，這樣當顧客走出絲芙蘭商店時，他們就會直接走進初級業務，我們我們非常努力地工作，確保我們有更多的潮流產品。

In the juniors area, maximizing our efforts with the market brands overall. So, the stores, I think are coming together very nicely and we feel good about what's going to happen in the future.

在青少年領域，最大限度地發揮市場品牌的整體作用。因此，我認為這些商店的合作非常好，我們對未來將發生的事情感到滿意。

Thank you.

謝謝。

Thank you. I think that's it. Thank you to everyone for listening on the call today. Have a good day. Bye.

謝謝。我想就是這樣。感謝大家今天收聽電話會議。祝你有美好的一天。再見。

This concludes today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。