柯爾百貨 (KSS) 2024 Q2 法說會逐字稿

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 2024 Kohl's Corporation earnings conference call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Mark Rupe, Senior Vice President, Investor Relations and Treasurer. Please go ahead.

早安.我叫奧德拉，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Kohl's Corporation 2024 年第二季財報電話會議。今天的會議正在錄製中。 （操作員指示）此時，我想將會議交給投資者關係高級副總裁兼財務主管馬克·魯普 (Mark Rupe)。請繼續。

Thank you. Certain statements made on this call, including projected financial results and 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，包括預期的財務表現和公司的未來舉措，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. 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，所有這些都明確表示前瞻性陳述透過引用納入本文，涉及最初做出的日期。 Kohl's 不承擔更新這些資訊的義務。

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 it is available on the company's Investor Relations website.

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，並且可以在公司的投資者關係網站上找到。

Please note that this call will be recorded. However, replays of this call will not be updated. So if you're listening to a replay of this call, it is possible that the information discussed is no longer current and Kohl's undertakes no obligation to update such information.

請注意，此通話將會被錄音。不過，本次通話的重播不會更新。因此，如果您正在收聽本次電話會議的重播，則所討論的資訊可能不再是最新的，並且 Kohl's 不承擔更新此類資訊的義務。

With me this morning are Tom Kingsbury, our Chief Executive Officer; and Jill Timm, our Chief Financial Officer. I will now turn the call over to Tom.

今天早上與我在一起的是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。我現在會把電話轉給湯姆。

Thank you, Mark, and good morning, everyone. We continue to work hard to reposition Kohl's for future growth and have taken significant actions to accomplish this. While we recognize the efforts of this scale take time. We were hopeful that a return to top line growth would materialize more quickly. We are making progress against our strategic priorities.

謝謝你，馬克，大家早安。我們將繼續努力重新定位 Kohl's 的未來發展，並採取重大行動來實現這一目標。雖然我們認識到這種規模的努力需要時間。我們希望能夠更快地恢復營收成長。我們正在根據我們的戰略重點取得進展。

However, our performance has been impacted by a continued challenging environment and in softness in our core business. During the second quarter, we attracted more new customers to Kohl's and experienced an increase in overall transactions, both of which are positive developments. At the same time, however, our customers exhibited more discretion in their spending, which pressured overall sales and overshadowed strong performance in our key growth areas, including Sephora, home decor, gifting and impulse.

然而，我們的業績受到持續充滿挑戰的環境和核心業務疲軟的影響。第二季度，我們為 Kohl's 吸引了更多新客戶，整體交易量增加，這都是正面的發展。然而，與此同時，我們的客戶在支出方面表現出更多的自由裁量權，這給整體銷售帶來了壓力，並掩蓋了我們在絲芙蘭、家居裝飾、禮品和衝動等關鍵增長領域的強勁表現。

Although we are disappointed with our second quarter sales, we continue to execute well operationally, enabling us to deliver a 13% increase in earnings driven by gross margin expansion and strong inventory and expense management.

儘管我們對第二季的銷售感到失望，但我們的營運繼續表現良好，在毛利率擴張以及強大的庫存和費用管理的推動下，我們的利潤增長了 13%。

Looking ahead, we are focused on ensuring that the substantial work that we've done across product, value, and experience is fully recognized by both new and existing customers. We will capitalize on new opportunities such as our partnership with Babies R Us and expect to continue to benefit from our key growth areas, and we will evolve our marketing to highlight all of our new product initiatives while also amplifying our focus on value with an emphasis on lower price messaging.

展望未來，我們致力於確保我們在產品、價值和體驗方面所做的實質工作得到新舊客戶的充分認可。我們將利用新的機遇，例如與Babies R Us 的合作夥伴關係，並期望繼續從我們的關鍵成長領域中受益，我們將發展我們的行銷以突出我們所有的新產品計劃，同時也強調我們對價值的關注較低價格的消息傳遞。

As Jill will discuss in more detail, our outlook for the balance of the year assumes the macro-economic environment will remain challenging. Importantly, our operating discipline, our solid cash flow generation in healthy balance sheet will continue to provide meaningful support as we work to return calls to growth as demonstrated by our Q2 operating performance.

正如吉爾將更詳細地討論的那樣，我們對今年剩餘時間的展望假設宏觀經濟環境仍將充滿挑戰。重要的是，我們的營運紀律，我們在健康的資產負債表中產生的穩定現金流將繼續提供有意義的支持，因為我們努力恢復成長，正如我們第二季的營運表現所證明的那樣。

Through all of this, we will remain focus 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. As I look at the progress we are making, we continue to manage inventory and expenses tightly and have strengthened our balance sheet.

透過這一切，我們將繼續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。當我看到我們所取得的進展時，我們繼續嚴格管理庫存和費用，並加強了我們的資產負債表。

And though we have taken significant action to enhance the customer experience and simplify our value strategies, we simply have more work to do to ensure we are fully capitalizing on our efforts. Let me start with what's working.

儘管我們已採取重大行動來增強客戶體驗並簡化我們的價值策略，但我們還有更多工作要做，以確保我們充分利用我們的努力。讓我從有效的方法開始。

First Sephora at Kohl's continued to deliver strong growth in Q2 with total beauty sales increasing approximately 45%. Comparable beauty sales grew in the [low-teens percent] with consistent performance across shops opened in 2021 and 2022. And shops opened in the past year are performing better than expected.

Kohl's 的第一絲芙蘭在第二季度繼續強勁成長，美容品總銷售額成長約 45%。同類美容產品銷售額以[百分之十幾]的速度成長，2021 年和 2022 年開設的商店表現一致。

We also continue to see solid growth digitally. Fragrance, bath and body and skincare were especially strong in the quarter in brands, including Sol de Janeiro, Sephora Collection, Rare Beauty, Charlotte Tilbury drove impressive growth. Our partnership with Sephora has been incredibly successful. Together, we have acquired millions of new customers and gained significant market share within the industry.

我們也繼續看到數位化的穩健成長。 Sol de Janeiro、Sephora Collection、Rare Beauty、Charlotte Tilbury 等品牌的香水、沐浴、身體和護膚品在本季度表現尤其強勁，推動了令人印象深刻的成長。我們與絲芙蘭的合作非常成功。我們共同獲得了數百萬新客戶，並在該行業內獲得了巨大的市場份額。

Sephora now has a presence in 1,050 of our stores following the opening of 140 shops this year. Looking ahead, we are confident in our ability to continue driving solid growth. We are introducing new brands such as Haus Labs by Lady Gaga and Glossier in makeup and Ariana Grande in fragrance. We are also significantly expanding our holiday gifting assortment building off of last year's success.

繼今年開設 140 家門市後，絲芙蘭目前已在 1,050 家門市開店。展望未來，我們對持續推動穩健成長的能力充滿信心。我們正在推出新品牌，例如 Lady Gaga 的 Haus Labs 和化妝品領域的 Glossier 以及香水領域的 Ariana Grande。在去年成功的基礎上，我們也大幅擴展了節日禮物種類。

Second, our work in underpenetrated categories continues to gain traction. Sales trends in home decor, gifting and impulse accelerated in Q2. And earlier this month, we successfully launched our partnership with Babies R Us. These collective areas continue to represent a significant sales growth opportunity in the coming years.

其次，我們在滲透不足的類別中的工作繼續受到關注。第二季家居裝飾、禮品和衝動的銷售趨勢加速。本月早些時候，我們成功啟動了與 Babies R Us 的合作關係。這些共同領域在未來幾年將繼續代表著巨大的銷售成長機會。

Let me share a little more on each of these. Our efforts to build our home decor business continues to progress, benefiting from our expanded assortment and recent investments in marketing and Q2 sales of seasonal and everyday to core increase more than 35% year over year. And we also experienced strong growth across many other areas such as storage, wall art, glassware set.

讓我對其中每一個進行更多分享。我們打造家居裝飾業務的努力不斷取得進展，這得益於我們產品種類的擴大以及最近在營銷方面的投資，以及第二季度季節性和日用核心銷售額同比增長超過 35%。我們在儲存、牆壁藝術、玻璃器皿套裝等許多其他領域也經歷了強勁的成長。

For back to school, we have highlighted backpacks and dorm room essentials. In gifting our customers continued to respond well to our assortment and front of store positioning. In Q2, sales increased more than 30%, with solid performances across key events, including Mother's Day, Father's Day and 4th of July. We will build on our success with an even more robust gift assortment for the upcoming holiday season.

回到學校，我們重點介紹了背包和宿舍必需品。在送禮方面，我們的客戶繼續對我們的品種和店面定位反應良好。第二季銷售額成長超過 30%，在母親節、父親節和 7 月 4 日等重要活動中表現強勁。我們將在即將到來的節日期間推出更豐富的禮品種類，以鞏固我們的成功。

As it relates to impulse, we drove sales growth of more than 70% as we expanded [queue] lines to 50 more stores in the second quarter. In Q3, we will add 200 more queue lines, bringing the total to 435 queue lines in time for the holiday season.

就衝動而言，我們在第二季將[排隊]隊伍擴大到 50 家以上，推動了銷售額成長超過 70%。第三季度，我們將再增加 200 個隊列，使假期期間隊列總數達到 435 個。

Now let me provide a brief update on our initial launch of Babies R Us, which allows us to broaden our reach with young families. We are in the process of opening 200 baby shops featuring thousands of products across baby gear furniture and accessories from a number of high quality brands.

現在讓我簡要介紹一下我們最初推出的 Babies R Us 的最新情況，這使我們能夠擴大與年輕家庭的接觸範圍。我們正在開設 200 家嬰兒用品商店，出售來自多個高品質品牌的數千種嬰兒用品、家具和配件產品。

We have opened more than 100 of our shops in August and are planning to open the remainder during the next month. Our baby offering is also available to customers online. We will learn from this initial launch, which will inform our plans for future expansion. In conjunction with the launch, we are introducing Motherhood, a leading maternity brand to enhance our offering for expectant mothers.

我們在 8 月開設了 100 多家商店，並計劃在下個月開設其餘商店。我們的嬰兒產品也可供客戶在線上購買。我們將從這次首次發布中吸取教訓，這將為我們未來的擴張計劃提供資訊。在發布產品的同時，我們也推出了領先的孕婦品牌 Motherhood，以增強我們為準媽媽們提供的服務。

And in Q3, we will introduce a Babies R Us registry in addition to baby gear and maternity will also see a halo opportunity to grow sales of our infant and newborn apparel. Moving beyond product, let me share some of our other initiatives that are working. We continue to effectively manage inventory and expenses. Inventory in Q2 declined 9% versus last year.

在第三季度，除了嬰兒用品和孕婦裝之外，我們還將推出 Babies R Us 註冊，這也將帶來增加嬰兒和新生兒服裝銷售的光環機會。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。我們繼續有效地管理庫存和費用。第二季庫存比去年下降 9%。

We continue to operate with greater flexibility and open-to-buy, which has enabled us to manage our inventory effectively despite lower sales. Looking ahead, we remain committed to increasing inventory turns and managing inventory down mid-single digits.

我們繼續以更大的靈活性和開放購買的方式經營，這使我們能夠在銷售額下降的情況下有效管理我們的庫存。展望未來，我們仍致力於提高庫存週轉率並將庫存控制在中個位數。

From an expense perspective, I am pleased with how the organization has remained disciplined in what continues to be a challenging environment. SG&A expenses in Q2 declined over 4% compared to last year. And lastly, we continued to strengthen our balance sheet. During the second quarter, we reduced our long-term debt by $113 million and reduced our revolver borrowings by $150 million as compared to last year.

從費用角度來看，我對該組織在仍然充滿挑戰的環境中保持紀律的方式感到滿意。第二季的 SG&A 費用與去年相比下降了 4% 以上。最後，我們繼續加強我們的資產負債表。與去年相比，第二季我們的長期債務減少了 1.13 億美元，循環借款減少了 1.5 億美元。

Now let me discuss some of the headwinds, our business continues to face in the actions we are taking. As I previously mentioned, our customers exhibited more discretion during the second quarter. Inflation and high interest rates continued to pressure spending, especially among our middle income consumers. We are seeing the clearest evidence of this in the performance of our core apparel and footwear offerings, which experienced broad softness in the quarter.

現在讓我討論一下我們的業務在我們正在採取的行動中繼續面臨的一些阻力。正如我之前提到的，我們的客戶在第二季度表現出了更多的自由裁量權。通貨膨脹和高利率繼續給支出帶來壓力，特別是對中等收入消費者來說。我們在核心服裝和鞋類產品的表現中看到了最明顯的證據，該產品在本季度經歷了廣泛的疲軟。

To better navigate this environment, we are taking a number of actions to ensure that our customers recognize all of the enhancements we have made across product value and experience during the past year. We are evolving our marketing message to increase consideration of Kohl's as a leading destination for value for the entire family.

為了更好地應對這種環境，我們正在採取一系列行動，以確保我們的客戶認可我們在過去一年中在產品價值和體驗方面所做的所有增強。我們正在改進我們的行銷訊息，以提高人們對 Kohl's 作為為整個家庭提供價值的領先目的地的考慮。

Our advertising has already begun to include messaging around lower price points across our assortment, and we will begin leveraging real customers and influencers to showcase not only our great values, but also our enhanced product offering. And of course, we'll continue to lean into Kohl's cash as a key value differentiator.

我們的廣告已經開始在我們的產品系列中包含圍繞較低價格點的信息，我們將開始利用真實的客戶和影響者不僅展示我們的巨大價值，而且展示我們增強的產品供應。當然，我們將繼續依靠科爾的現金作為關鍵的價值差異化因素。

Beyond our marketing efforts, we know, we have more work to do in our core apparel and footwear business to improve the sales trends, which frankly, have been disappointing. To be clear, we remain confident that the product we are offering today is more relevant to our customers. This is supported by our recent customer insight work that indicates more of their customers' field Kohl's resonates with them and by an increase in conversion we experienced in the second quarter.

我們知道，除了行銷工作之外，我們在核心服裝和鞋類業務上還有更多工作要做，以改善銷售趨勢，坦白說，銷售趨勢令人失望。需要明確的是，我們仍然相信我們今天提供的產品與我們的客戶更相關。我們最近的客戶洞察工作證明了這一點，該工作表明科爾士的更多客戶領域與他們產生了共鳴，並且我們在第二季度經歷了轉換率的增加。

We are delivering growth in our new products, including dresses, which are benefiting from expanded space in our stores as well as market brands, which are resonating well with our customers. And we are seeing promising initial sell through trends in newly introduced brands such as Aeropostale and Limited Too. We are also encouraged by trend improvement in active witness during the quarter.

我們正在實現包括連身裙在內的新產品的成長，這些產品受益於我們商店空間的擴展以及與我們的客戶產生良好共鳴的市場品牌。我們看到了 Aeropostale 和 Limited Too 等新推出品牌的初步銷售趨勢。我們也對本季活躍見證人的趨勢改善感到鼓舞。

Our private active brands, which include FLX and Tek Gear grew low double digits, and we delivered positive growth in several of our national brands, including Nike, Skechers, Columbia and Eddie Bauer.

我們的自有活躍品牌（包括 FLX 和 Tek Gear）實現了兩位數的低成長，我們的幾個國內品牌也實現了正成長，包括 Nike、Skechers、Columbia 和 Eddie Bauer。

As it relates to back-to-school, we are pleased with our position in backpacks, kids, footwear and boys and girls apparel. Nonetheless, there are several areas of our business that are holding us back, some of which are self-inflicted. Jewelry is a good example of a category where we failed to retain sales as we made space for Sephora in stores.

由於涉及返校，我們對我們在背包、兒童、鞋類以及男孩和女孩服裝領域的地位感到滿意。儘管如此，我們的業務仍有幾個領域阻礙了我們，其中一些是我們自己造成的。珠寶就是一個很好的例子，我們在商店裡為絲芙蘭騰出了空間，但未能保留銷售額。

s we've discussed on last quarter's call, this is a category that was highly valued by our customers, and we are committed to reestablishing our positioning. This holiday season, we will reintroduce fine jewelry in 200 stores as well as expand in-aisle placement of bride jewelry. We have also identified opportunities to rebuild our assortment with increased newness in areas, including petites and classic sportswear, where we've lost traction in recent years. And we continue to see opportunity in growing our juniors and legacy home businesses, which candidly underperformed in Q2.

正如我們在上季度的電話會議中所討論的那樣，這是一個受到我們客戶高度重視的類別，我們致力於重新確立我們的定位。這個假期，我們將在 200 家商店重新推出高級珠寶，並擴大新娘珠寶的過道擺放。我們也找到了重建我們產品系列的機會，在一些領域增加新意，包括近年來我們在這些領域失去吸引力的小件和經典運動裝。我們繼續看到發展我們的初級和傳統家庭業務的機會，這些業務在第二季度表現不佳。

During Q2, we began to reposition juniors back to the front of the store, which is expected to positively influence sales this fall by capitalizing on to Sephora traffic. We will also continue to leverage market brands to bring in trend-right product to better connect with our younger customers.

在第二季度，我們開始將初級員工重新定位到商店前面，預計這將利用絲芙蘭的客流量對今年秋季的銷售產生正面影響。我們也將繼續利用市場品牌，引入符合潮流的產品，以便更好地與年輕客戶建立聯繫。

As it relates to our legacy home business, sales within kitchen electrics, floorcare and bedding remained under pressure. However, we expect trends to stabilize as we move through fall based on increased innovation, new brand introductions and a stronger value messaging.

由於與我們的傳統家居業務相關，廚房電器、地板護理和床上用品的銷售仍然面臨壓力。然而，隨著創新的增加、新品牌的推出和更強大的價值訊息傳遞，我們預期隨著秋季的到來，趨勢將趨於穩定。

Lastly, it's important that we continue to drive traffic across our omnichannel platform. In Q2, digital sales outperformed store sales with transactions increasing in both channels. To support future growth, we are investing to enhance our omni experience.

最後，重要的是我們要繼續推動全通路平台的流量。第二季度，數位銷售優於實體銷售，兩個通路的交易量均增加。為了支持未來的成長，我們正在投資增強我們的全方位體驗。

In stores, we are strengthening our leadership structure, adding an additional layer of management closer to stores to ensure we are driving a consistent experience across the chain. And digitally, we continued to increase personalization while also leaning into social commerce to reach a younger audience. So as you heard, we have a number of actions underway to stabilize and improve our sales trend. Collectively, we believe our strategic initiatives will help us reach new customers and increase engagement with existing customers.

在商店中，我們正在加強我們的領導結構，在靠近商店的地方增加一個額外的管理層，以確保我們在整個連鎖店中提供一致的體驗。在數位化方面，我們持續提高個人化，同時也傾向於社交商務來吸引年輕受眾。正如您所聽到的，我們正在採取一系列行動來穩定和改善我們的銷售趨勢。總的來說，我們相信我們的策略性舉措將幫助我們吸引新客戶並增加與現有客戶的互動。

I will now summarize my comments today and I want to leave you with three things. First, we continue to operate in a difficult consumer environment. Our customers are feeling the burden of the higher cost of living. This is evident in smaller basket sizes in Q2. Recognizing this, we have amplified our focus on value, especially in our marketing messaging.

我現在總結一下我今天的評論，我想給你們留下三件事。首先，我們繼續在困難的消費環境中運作。我們的客戶正在感受到生活成本上升的負擔。這在第二季較小的購物籃規模中表現得很明顯。認識到這一點，我們加大了對價值的關注，尤其是在行銷訊息方面。

Second, we continue to execute well operationally and remain in a sound financial position. Despite the decline in sales, we increased Q2 earnings by 13%. We are expanding our gross margin managing inventory and expenses with discipline and strengthening our balance sheet by reducing long-term debt. We also remain committed to returning capital to shareholders through the dividend, which is supported by our solid cash flow generation.

其次，我們繼續良好的營運並保持良好的財務狀況。儘管銷售額下降，我們第二季的獲利仍成長了 13%。我們正在透過嚴格管理庫存和費用來擴大毛利率，並透過減少長期債務來加強我們的資產負債表。我們也仍然致力於透過股利向股東返還資本，這得到了我們穩定的現金流產生的支持。

And third, our investments in key growth areas are building momentum. Sephora at Kohl's continues to drive strong sales growth and will benefit in the back half of the year from the additional 140 shops opened. We're also gaining traction in home decor, significantly expanding our holiday gifting offering and adding impulse queuing lines to 200 more stores in Q3, all of which are positioned to deliver incrementally this holiday season. And we are optimistic that our Babies R Us launch will bring in new customers as awareness builds.

第三，我們在關鍵成長領域的投資正在形成動能。 Kohl's 旗下絲芙蘭繼續推動強勁的銷售成長，並將在今年下半年因新增 140 家門市而受益。我們在家居裝飾方面也獲得了關注，顯著擴大了我們的節日禮品供應，並在第三季度為另外 200 家商店增加了脈衝排隊隊伍，所有這些商店都準備在這個節日季逐步交付。我們樂觀地認為，隨著意識的增強，Babies R Us 的推出將帶來新客戶。

As I said at the outset, we are working hard to reposition Kohl's for future growth and we are taking significant action to accomplish this against a difficult economic backdrop. That said, our confidence in our strategy remains strong. We continue to believe that we are making the right strategic decisions to set Kohl's up for the long term success. And in time, I look forward to delivering results that reflect this. I want to thank all of our associates for their dedication to Kohl's in support of our strategic efforts.

正如我一開始所說的，我們正在努力重新定位科爾的未來成長，並且我們正在採取重大行動，以在困難的經濟背景下實現這一目標。儘管如此，我們對我們的策略仍然充滿信心。我們仍然相信，我們正在做出正確的策略決策，幫助科爾士百貨取得長期成功。隨著時間的推移，我期待提供反映這一點的結果。我要感謝我們所有的員工為科爾的奉獻，支持我們的策略努力。

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

我現在將電話轉給吉爾，討論我們第二季的業績和 2024 年的前景。

Thank you, Tom, and good morning, everyone. For today's call. I will provide additional details on our second quarter results as well as an update on our fiscal year 2024 guidance. Net sales decreased 4.2% in Q2 and are down 4.7% year to date, comparable sales declined 5.1% in Q2 and declined 4.8% year to date.

謝謝你，湯姆，大家早安。為了今天的電話。我將提供有關第二季度業績的更多詳細資訊以及 2024 財年指導的最新資訊。第二季淨銷售額下降 4.2%，年初至今下降 4.7%，較銷售額第二季下降 5.1%，年初至今下降 4.8%。

As Tom indicated, in Q2, we attracted more new customers to Kohl's and experienced an increase in overall transactions, both of which are positive developments. However, customers exhibited more discretionary spending, which led to a smaller average basket size. Digital sales outperformed store sales in the quarter, so both were down to last year. Other revenue, which is primarily our credit business, decreased 5% in the quarter and year to date in line with our expectations.

正如湯姆指出的那樣，在第二季度，我們為 Kohl's 吸引了更多新客戶，整體交易量有所增加，這都是積極的發展。然而，客戶表現出更多的可自由支配支出，這導致平均購物籃規模較小。本季數位銷售優於實體店銷售，因此兩者均低於去年同期。其他收入（主要是我們的信貸業務）本季和年初至今下降了 5%，符合我們的預期。

Moving down the P&L, second quarter gross margin was 39.6%, up 59 basis points versus last year. This increase was driven by inventory management and lower freight expense. Year to date, gross margin was 39.6%, an increase of 54 basis points. SG&A expenses declined 4.2% to $1.2 billion in Q2, benefiting from lower store-related expenses, even as we invested in marketing and technology to support our growth initiatives.

從損益表來看，第二季毛利率為 39.6%，比去年同期成長 59 個基點。這一增長是由庫存管理和運費降低所推動的。年初至今，毛利率為39.6%，成長了54個基點。儘管我們投資了行銷和技術來支持我們的成長計劃，但受益於商店相關費用的減少，第二季的銷售、行政管理費用下降了 4.2%，至 12 億美元。

The decline in store-related expenses was driven by fewer Sephora openings, fewer store refreshes and tightly managing expenses with the decline in sales. Year to date, SG&A expenses have decreased 2.5% compared to last year. Depreciation expense in the quarter was $188 million and $376 million year-to-date, both up $2 million to last year.

與商店相關的費用下降是由於絲芙蘭開業減少、商店更新減少以及銷售額下降而嚴格管理費用所致。今年迄今為止，SG&A 費用與去年相比下降了 2.5%。本季的折舊費用為 1.88 億美元，年初至今為 3.76 億美元，均比去年增加了 200 萬美元。

Interest expense of $86 million in the quarter, down $3 million from last year. As a reminder, Q2 interest expense included a $4.6 million pretax charge related to the May con call we executed on our May 2025 notes during the quarter.

本季利息支出為 8,600 萬美元，比去年減少 300 萬美元。提醒一下，第二季的利息支出包括 460 萬美元的稅前費用，該費用與我們在本季度對 2025 年 5 月票據執行的 5 月 con 看漲期權相關。

Year to date, interest expense decreased $4 million to $169 million. Net income for the quarter was $66 million and earnings per diluted share was $0.59. Year to date, net income of $39 million and earnings per diluted share was $0.35.

年初至今，利息支出減少了 400 萬美元，達到 1.69 億美元。該季度淨利潤為 6,600 萬美元，稀釋後每股收益為 0.59 美元。年初至今，淨利為 3,900 萬美元，稀釋後每股收益為 0.35 美元。

Moving on to the balance sheet and cash flow. We ended Q2 with $231 million of cash and cash equivalents. Inventory at quarter end was down 9% compared to last year, once again exceeding our commitment of mid-single digits decline.

接下來是資產負債表和現金流量。第二季結束時，我們擁有 2.31 億美元的現金和現金等價物。季度末庫存比去年下降 9%，再次超出我們中個位數下降的承諾。

Inventory management remains a key focus of ours with the goal of increasing churn, which increased 7% in Q2. Looking ahead, we feel good about how we are positioned entering the fall season. Year to date operating cash flow was $247 million, an increase of $228 million last year. And year to date adjusted free cash flow was a use of $34 million, an improvement from a use of $140 million in the prior year.

庫存管理仍然是我們的重點，目標是增加客戶流失率，第二季客戶流失率增加了 7%。展望未來，我們對進入秋季的定位感到滿意。年初至今的營運現金流為 2.47 億美元，比去年增加了 2.28 億美元。年初至今，調整後的自由現金流使用了 3,400 萬美元，比前一年的 1.4 億美元有所改善。

Now let me touch on our capital allocation priorities. Capital expenditures year to date for $239 million, significantly less than the $338 million last year, driven by fewer Sephora openings. We are still planning 2024 CapEx of approximately $500 million, consisting of investment in 350 impulse queuing lines, 140 Sephora small shop openings, the launch of 200 Babies R Us shops and six new store openings, including one relocation.

現在讓我談談我們的資本配置優先事項。由於絲芙蘭開業數量減少，今年迄今的資本支出為 2.39 億美元，遠低於去年的 3.38 億美元。我們仍計劃 2024 年資本支出約為 5 億美元，包括投資 350 條脈衝排隊線、開設 140 家絲芙蘭小店、開設 200 家 Babies R Us 商店以及開設 6 家新店，其中包括 1 家搬遷。

After investing in the business, strengthening the balance sheet and returning capital to shareholders also remains a top priority. We ended Q2 with $410 million on our revolver, down from $560 million at the end of Q2 last year. During the second quarter, we redeemed the remaining $113 million of our 9.5% notes due May 2025, lowering our long-term debt. For the remainder of the year, our focus will be on paying down our revolver balance and rebuilding our cash position.

投資業務後，加強資產負債表和向股東返還資本也仍然是首要任務。第二季末，我們的左輪手槍銷售額為 4.1 億美元，低於去年第二季末的 5.6 億美元。在第二季度，我們贖回了 2025 年 5 月到期的 9.5% 票據中剩餘的 1.13 億美元，降低了我們的長期債務。在今年剩下的時間裡，我們的重點將是償還我們的左輪手槍餘額和重建我們的現金部位。

Looking ahead, we will continue to monitor our options with respect to the July 2025 notes, and we'll likely address them closer to maturity given the favorable coupon rate. As for shareholder returns, we continue to prioritize the payment of our dividend at current levels. In Q2, we distributed $56 million in dividends to our shareholders and as previously disclosed, the board on August 13 declared a quarterly cash dividend of $0.5 per share, payable to shareholders on September 25.

展望未來，我們將繼續監控 2025 年 7 月票據的選擇，鑑於優惠的票面利率，我們可能會在接近到期時處理它們。至於股東回報，我們繼續優先按當前水準支付股息。在第二季度，我們向股東派發了 5,600 萬美元的股息，正如先前披露的那樣，董事會於 8 月 13 日宣布季度現金股息為每股 0.5 美元，並將於 9 月 25 日向股東支付。

Now let me share some details on our updated outlook for 2024. As you've heard this morning, we continue to have strong confidence in our strategy. We are working hard to reposition calls for future growth. We are approaching our financial outlook for the year prudently taking into account our first half performance and 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。我們正在努力重新定位未來成長的訴求。考慮到我們上半年的業績和消費者環境持續的不確定性，我們正在謹慎地對待今年的財務前景。

For the full year, we currently expect net sales to be in the range of a 4% decrease to a 6% decrease versus 2023 as compared to our previous guidance range of a decrease of 2% to 4%. Comparable sales to be in the range of a 3% decrease to a 5% decrease. Our previous full year comparable sales guidance range was a 1% decrease to a 3% decrease.

對於全年，我們目前預計淨銷售額將比 2023 年下降 4% 至 6%，而我們先前的指導範圍為下降 2% 至 4%。可比銷售額下降3%至5%。我們之前的全年可比銷售指導範圍是下降 1% 至 3%。

Other revenue is expected to be down mid-single digits for the full year, given the uncertainty surrounding the timing of the implementation of the CFPB late fee rule, which is currently being challenged in litigation, we have excluded any potential impact from our updated guidance. We will continue to monitor development and will provide an update when appropriate in the future.

考慮到 CFPB 滯納金規則實施時間的不確定性（該規則目前正在訴訟中受到質疑），預計全年其他收入將下降中個位數，我們已排除更新後指引中的任何潛在影響。我們將繼續監控開發情況，並在未來適當的時候提供更新。

We expect gross margin to expand 40 basis points to 50 basis points, and SG&A dollars to be down 2% to 3% for the year. We expect operating margin to be in the range of 3.4% to 3.8% as compared to our prior guidance range of 3% to 3.5%.

我們預計今年毛利率將擴大 40 個基點至 50 個基點，SG&A 美元將下降 2% 至 3%。我們預計營業利潤率將在 3.4% 至 3.8% 之間，而我們先前的指導範圍為 3% 至 3.5%。

And EPS to be in the range of $1.75 to $2.25. This compares to our prior guidance of $1.25 to $1.85. In closing, I want to reiterate that we remain financially strong and are prepared to navigate this environment. As we've demonstrated in Q2, our operating discipline, solid cash flow generation and healthy balance sheet will continue to provide meaningful support as we continue our work to return Kohl's to growth. With that, Tom and I are happy to take questions at this time.

每股收益將在 1.75 美元至 2.25 美元之間。相比之下，我們之前的指導價為 1.25 美元至 1.85 美元。最後，我想重申，我們的財務狀況依然強勁，並準備好應對這種環境。正如我們在第二季度所展示的那樣，我們的營運紀律、穩定的現金流生成和健康的資產負債表將繼續為我們繼續努力讓科爾恢復成長提供有意義的支持。至此，湯姆和我很樂意在這個時候回答問題。

Thank you. We will now begin the question and answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Bob Drbul, Guggenheim.

鮑勃·德布爾，古根漢。

Hi, good morning. I guess, if I could get two questions in. The first one is just, Tom, on the core business with what you're doing in women's and dresses and the shops, can you just expand more on like how those businesses with shops are doing versus non -- stores that don't have the shops in them? And just wondering if you could just talk a little bit more on the expectations for promotional environment for the rest of the year?

嗨，早安。我想，如果我可以問兩個問題。還是不做？只是想知道您是否可以多談談對今年剩餘時間促銷環境的期望？

Well, I think it's to answer the last question first, it's going to be very promotional. We're really focused on that. The customer is squeezed, and we think it's really important that we deliver as much value on the selling floor as we possibly can. The fourth quarter is always promotional, but we think it's going to be even more promotional just based on what we're currently experiencing right now.

嗯，我想先回答最後一個問題，這樣會很有宣傳作用。我們真的很專注於此。客戶受到擠壓，我們認為在銷售場所提供盡可能多的價值非常重要。第四季總是促銷活動，但根據我們目前的經歷，我們認為促銷力道將會更大。

Overall, the customer that was the middle income customer, they're really stressed in terms of what they're dealing with right now. So, we're going to try to deliver as much value as possible as I said. As far as women's in terms of shops versus non-shops, obviously, if they have dresses, they are performing better, because dresses are performing very well.

總的來說，對於中等收入客戶來說，他們現在面臨的壓力確實很大。因此，正如我所說，我們將盡力提供盡可能多的價值。就女性而言，就商店與非商店而言，顯然，如果她們有連身裙，她們的表現會更好，因為連身裙的表現非常好。

We are very pleased with our performance in that category. We are expanding to all stores based on our current performance overall. The women's business is one of the businesses in the second quarter that from the first quarter went backwards. We're not happy with that. The team is working really hard to turn it around. We have a really good team there. The intimate apparel business really hurt us there. We struggled with some of the key brands in our assortments there. It made up a lot of the decrease that we had overall.

我們對我們在該類別中的表現感到非常滿意。根據我們目前的整體業績，我們正在擴展到所有商店。女裝業務是第二季較第一季倒退的業務之一。我們對此並不滿意。該團隊正在努力扭轉局面。我們那裡有一支非常優秀的團隊。那裡的內衣業務確實傷害了我們。我們在那裡的產品類別中與一些主要品牌陷入了困境。它彌補了我們整體下降的很大一部分。

We haven't really turned the corner in the active business. Active improves in the other areas very nicely. The junior business, it's really in the middle of a transformation. We are moving that product from the middle of the women's sportswear business to the front of the store. We saw a real nice lift in those stores that have been able to accomplish that, that should be done, obviously in the third quarter overall, but we're putting the women's business under the microscope and we really are trying to work hard to turn that business around as soon as we can.

我們的活躍業務還沒有真正走出困境。 Active 在其他方面的改善也非常好。初級企業確實正處於轉型之中。我們正在將該產品從女士運動服業務的中間轉移到商店的前面。我們看到那些能夠實現這一目標的商店確實取得了不錯的提升，顯然應該在第三季度完成這一目標，但我們正在密切關注女性業務，我們確實正在努力努力扭轉局面我們會盡快解決這個問題。

Great. Thank you very much. Good luck.

偉大的。非常感謝。祝你好運。

Thank you.

謝謝。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Hi, good morning. This is Amy Teske on for Mark this morning. Can you speak to the cadence of demand through the quarter and if there were any material differences between regular pricing, clearance? And then, amid the ongoing macro challenges, what is giving you the confidence that core merchandise initiatives are on track?

嗨，早安。我是艾米‧特斯克，今天早上為馬克代言。您能否談談整個季度的需求節奏以及常規定價和清倉之間是否存在任何重大差異？那麼，在持續的宏觀挑戰中，是什麼讓您對核心商品計畫步入正軌充滿信心？

I can start with the cadence for the comps, and we really don't speak inter-month. What I would say is we had a pretty consistent quarter from that perspective. Nothing to call out this quarter on reg and clearance. We had a unique event in Q1 when we were comping a very large markdown from the year before. And so, we're really back to normal business, and Q2 isn't a huge clearance quarter for us.

我可以從比賽的節奏開始，我們真的不會跨月交談。我想說的是，從這個角度來看，我們的季度表現相當穩定。本季在監管和清理方面沒有什麼值得指出的。我們在第一季發生了一次獨特的事件，當時我們比前一年進行了大幅降價。因此，我們確實恢復了正常業務，第二季對我們來說並不是一個巨大的清倉季度。

Obviously, Q1 is much more impactful because of the seasonal change and then Q3 is another time that we have a big clearance. So, there really isn't much to talk about from that perspective. I think we said we had started out, on the call in May, a little softer. So, we saw some ebbs and flows, but obviously, down at the where we were in Q1, so down 5% was well below where expectations were for the quarter.

顯然，由於季節變化，第一季的影響更大，然後第三季是我們再次進行大清倉的時間。所以，從這個角度來看，確實沒什麼好談的。我想我們在五月的電話會議上說過，我們已經開始變得更溫和了。因此，我們看到了一些潮起潮落，但顯然，我們在第一季的水平有所下降，因此下降 5% 遠低於本季的預期。

And I think the big things is the newness is working, and you heard that from Tom on the call, but it does, to your second question, really come back to some of these core items, particularly as Tom just talked about in women's. We saw that not only in intimates, we saw it in the seasonal assortment as well. So, swim and some of the other summer assortment had not really resonated as much, but the newness with dresses is doing incredibly well.

我認為最重要的是新鮮感正在發揮作用，你在電話中聽到了湯姆的說法，但對於你的第二個問題，確實回到了其中一些核心項目，特別是正如湯姆剛剛在女裝中談到的那樣。我們不僅在內衣中看到了這一點，還在季節性產品中看到了這一點。因此，游泳和其他一些夏季服飾並沒有引起太大的共鳴，但連身裙的新穎性表現得非常好。

So, as we look ahead, we're looking at what we can do to continue to bring in that newness and really leveraging the market, and that's the strategy that Tom has brought to the table. So, you should see a lot more newness on the floor, which has been resonating with the customer. And then, as Tom mentioned, the juniors business was soft in those areas that we left it in the middle, but as we moved to the front right across from Sephora, we saw that business pick up and we think we're really taking advantage of that Sephora customer, bringing it to the forefront, so they can see the newness that we're bringing in, particularly around brands like Aeropostale, Limited Too and madden girl have done well as we've launched them as well.

因此，當我們展望未來時，我們正在考慮如何繼續引入新事物並真正利用市場，這就是湯姆提出的策略。因此，您應該會在地板上看到更多新奇的東西，這已經引起了客戶的共鳴。然後，正如湯姆所提到的，在我們把它留在中間的那些區域，青少年業務很疲軟，但當我們搬到絲芙蘭對面的右前方時，我們看到業務有所回升，我們認為我們真的在利用優勢絲芙蘭客戶的關注度，將其帶到最前沿，這樣他們就可以看到我們帶來的新鮮感，特別是像Aeropostale、Limited Too 和Madden Girl 這樣的品牌，我們推出的這些品牌也做得很好。

Thank you.

謝謝。

Chuck Grom, Gordon Haskett.

查克·格羅姆，戈登·哈斯克特。

Good morning, thanks so much. Can you guys speak about the percentage of customers that are cross shopping the store when they make a Sephora purchase today and how that compares to, say, maybe earlier in the year or maybe 12 months ago? And then zooming out, you talked about revisiting juniors. I guess, how can you take advantage of Sephora in a better way going forward?

早安，非常感謝。你們能否談談今天在絲芙蘭購買商品時在商店交叉購物的顧客所佔的百分比，以及與今年早些時候或 12 個月前相比如何？然後鏡頭拉遠，你談到了重溫年輕球員。我想，未來如何才能更好地利用絲芙蘭呢？

Well, we've seen a nice crossover in terms of customers that are shopping at Sephora. Primarily it's around 35% of the Sephora baskets have another product from Kohl's in their basket. It's primarily, there's women's in the basket, juniors is in the basket, impulse and accessories overall. We're trying to take advantage of that. That's one reason why we're moving juniors to the front of the store, because we think there's a lot of crossover from the Sephora customer into juniors, because of the fact that it's a trend it's a -- Sephora is a trend product, juniors is a trend product overall.

嗯，我們看到在絲芙蘭購物的顧客出現了很好的交叉。主要是大約 35% 的絲芙蘭購物籃中都有 Kohl's 的另一種產品。主要是女裝、青少年、衝動和配件。我們正在努力利用這一點。這就是我們將青少年移到商店前面的原因之一，因為我們認為絲芙蘭顧客與青少年有很多交叉，因為這是一種趨勢，絲芙蘭是一種趨勢產品，青少年整體來說是一款潮流產品。

We feel that's true with accessories as well. So, we're trying to connect those categories as much as possible. We feel that over time the more and more we do that, the more we are going to have repeat customers overall. It's been sort of stable. I think it was initially it was a little bit higher, but it hasn't changed dramatically. I don't know, Jill, do you have anything you want to add to that?

我們認為配件也是如此。因此，我們正在嘗試盡可能地將這些類別連結起來。我們認為，隨著時間的推移，我們做得越多，我們的回頭客就會越多。已經有點穩定了我認為最初是有點高，但並沒有發生太大變化。吉爾，我不知道你還有什麼要補充的嗎？

No, I think we've seen it very consistent in terms of the cross shop that we have. We also see that those customers do shop us like 1.5 times more frequently. So that, I think one of the calls we had in the quarter was that our transactions were up. And I think Chuck, we haven't seen that for a while. So, we are seeing that customer shop and buy more frequently and the conversion was also up. So, the new product that we're bringing resonating.

不，我認為我們在交叉商店方面看到的情況非常一致。我們也發現，這些顧客在我們這裡購物的頻率是原來的 1.5 倍。因此，我認為本季我們接到的電話之一是我們的交易量增加了。我想查克，我們已經有一段時間沒有看到這種情況了。因此，我們看到客戶購物和購買更加頻繁，轉換率也有所提高。因此，我們帶來的新產品引起了共鳴。

I think the only thing I would add is kids was also seen in the basket. So, as we now can complement that with our Babies R Us initiative that we'll be launching. So, really all the areas that we've seen in the basket really trying to have some enhancements around that to take advantage of the fact that we're seeing it over a third of the baskets, but really how can we continue to grow that, and then even get more trips out of that customer knowing that beauty is a replenishable item.

我想我唯一要補充的是孩子們也出現在籃子裡。因此，我們現在可以透過我們將推出的 Babies R Us 計劃來補充這一點。因此，實際上，我們在籃子中看到的所有區域都在嘗試圍繞這一點進行一些增強，以利用我們在籃子中看到的超過三分之一的事實，但實際上我們如何繼續增長這一點，然後甚至讓客戶知道美容是可補充的物品，從而獲得更多的旅行。

Yeah, the other thing that's exciting about the Sephora and we've said this multiple times before is that 40% of the customers that are shopping Sephora at Kohl's are new to Kohl's. So that's a pretty phenomenal number overall. And we're still on target to hit the numbers that we've been saying all along.

是的，絲芙蘭的另一件令人興奮的事情是，我們之前多次說過，在 Kohl's 購買 Sephora 的顧客中有 40% 是 Kohl's 的新顧客。所以整體來說這是一個非常驚人的數字。我們仍然致力於達到我們一直以來所說的數字。

That's great. It seems like a big opportunity. And then, just on Babies R Us, any early reads thus far? How impactful do you think it could be to comps? And then just, Jill, just on the back half outlook, anything on the phasing of comps or gross margins that we should be thinking about in our models? Thank you.

那太棒了。這似乎是一個很大的機會。然後，就《Babies R Us》而言，到目前為止有什麼早期讀物嗎？您認為這對比較有多大影響？然後，吉爾，就後半部分的前景而言，我們應該在模型中考慮有關分階段比較或毛利率的任何內容？謝謝。

I'll let Jill answer that obviously, but I'll talk about Babies R Us. It's early. I mean, we have it in 100 stores, and it's just really got into 100 stores and it's obviously by the end of September, it will be in the 200 stores. Just some color on it. The number one category so far is baby gear, car seats and strollers, et cetera, which is really good, because that's what we really want to see.

我會讓吉爾顯然回答這個問題，但我會談談《Babies R Us》。現在還早。我的意思是，我們有 100 家商店有它，而且它確實已經進入了 100 家商店，顯然到 9 月底，它將出現在 200 家商店中。只是在上面加點顏色而已。到目前為止排名第一的類別是嬰兒用品、汽車座椅和嬰兒車等，這非常好，因為這是我們真正希望看到的。

The second category really is furniture, that's another positive that they are really shopping us. I mean, if it was feeding or something like that or gifts, we wouldn't be as excited about it, but candidly though, it's so early. We hate to really tout it too much because give us some time and we'll be giving you color on that as it emerges. Jill?

第二類確實是家具，這是他們真正在購買我們的另一個積極因素。我的意思是，如果是餵食或類似的東西或禮物，我們就不會那麼興奮，但坦白說，現在還太早了。我們不想過多地宣傳它，因為給我們一些時間，我們會在它出現時為您提供顏色。吉爾？

Yeah. And in terms of the guidance, I guess, what I would say is a lot of our initiatives for the back half are starting. So, we do expect there to be a build from that perspective. Obviously, we just talked about 100 stores for BRU opening in August and another 100 coming in September.

是的。就指導而言，我想我想說的是，我們下半年的許多舉措正在開始。因此，我們確實希望從這個角度來看會有一個構建。顯然，我們剛剛談到 BRU 在 8 月開設 100 家商店，並在 9 月開設另外 100 家商店。

The impulse lines, we're opening up an additional 200 in the back half of the year as well. And that's been a real positive for us, really getting that extra item, a little extra dollars from that customer. So, we're looking to bring that into 350 stores this year. So that will happen in the back half as well. And then, a lot of these brand launches that we're talking about are just setting on the store, so the newness that you'll see.

至於脈衝線，我們也將在今年下半年額外開放 200 條。這對我們來說是一個真正的積極因素，我們真的從客戶那裡得到了額外的東西，一點額外的錢。因此，我們希望今年將其引入 350 家商店。所以這也會發生在後半段。然後，我們談論的許多品牌發布都只是在商店中進行，所以你會看到新的東西。

And then, as we go into holiday, I think what we're excited about is building off some of the successes from last year, particularly around gifting. So, we're going to have a stronger presence in gifting across the store. I think almost 2x what we saw last year. We're going to have big Sephora gift shops if we think about how we can bring those gift boxes out onto the floor as well really around fragrance and skincare, so learning from what we saw last year.

然後，當我們進入假期時，我認為我們感到興奮的是在去年取得的一些成功的基礎上再接再厲，尤其是在送禮方面。因此，我們將在整個商店的禮品方面擁有更強大的影響力。我認為幾乎是去年的兩倍。如果我們考慮如何將這些禮品盒放在地板上，以及真正圍繞香水和護膚品，我們將擁有大型絲芙蘭禮品店，因此請從去年的情況中學習。

So, I would just say that it probably is going to be a build from a sales perspective as those initiatives continue to build for us. And then, from a margin perspective, I think it's probably going to be pretty similar. I mean, Q3 has more of a clearance, but I think with the inventory management that we've had, we've really been able to benefit off of that strength. So, I would say a pretty clear, between the two, a pretty even margin increase for the year.

因此，我只想說，隨著這些舉措繼續為我們打造，這可能會是從銷售角度來看的一個構建。然後，從利潤的角度來看，我認為它可能會非常相似。我的意思是，第三季有更多的清倉，但我認為透過我們的庫存管理，我們確實能夠從這種優勢中受益。因此，我想說，在兩者之間，今年的利潤率成長相當均勻。

Michael Binetti, Evercore.

邁克爾·比內蒂，Evercore。

Hi, this is [Jacquelyn Wang]. On behalf of Michael. Just on the guidance, what's driving the increased margin leverage in the guidance in the second half despite the lower sales, and how durable is this? Also, what's the impact of excluding the CFPB from the 2024 guidance? I know it was included in the first quarter.

大家好，我是【王傑琳】。代表麥可.就指導而言，儘管銷售額較低，但下半年指引中的利潤率槓桿增加的原因是什麼？另外，將 CFPB 排除在 2024 年指導方針之外會產生什麼影響？我知道它包含在第一季中。

Sure. I think, from the back half of the year, the way we looked at the guidance is the low end is really the trend that we have seen in the front half of the year, so down 5%. And then, the down 3% really is about the initiatives that we just talked about in the build in which we think that they can bring in. So, really around the newness in Babies R Us, the completion of 140 Sephora shops, having new brands launching into the business, having impulse. So that's really how we see the build.

當然。我認為，從今年下半年來看，我們看待指引的方式是低端，這確實是我們在今年上半年看到的趨勢，所以下降了 5%。然後，下降的 3% 實際上是關於我們剛才在構建中談到的我們認為他們可以引入的舉措。品牌進入該行業，有衝動。這就是我們看待建構的方式。

In terms of margin, obviously [40 basis points to 50 basis points], we just completed the first half of the year, up over [50 basis points]. So, we will see some freight moderation that did benefit us in the front half. We won't have that same benefit into the back half. And then, I think that also gives us room to really lean in from promotions where Tom started this call, we do expect it to be highly promotional in the holiday.

就利潤率而言，顯然[40個基點到50個基點]，我們剛剛完成了上半年的工作，成長了[50個基點]以上。因此，我們將看到一些貨運放緩，這在上半年確實使我們受益。我們在後半場不會有同樣的好處。然後，我認為這也為我們提供了真正從湯姆發起這次電話會議的促銷活動中獲益的空間，我們確實希望它在假期中得到大力促銷。

So, we did give ourselves some room from that perspective as well. So, that's how the margin plays out. And then, from a SG&A perspective, obviously showed some really good disciplines in the front half of the year. I think, we've proven we have a pretty cost discipline culture from an expense management perspective. So, we'll continue to lean in on that, particularly if we have those softer sales, it will ebb and flow.

所以，從這個角度來看，我們也確實給了自己一些空間。所以，這就是利潤的發揮方式。然後，從 SG&A 的角度來看，今年上半年顯然表現出了一些非常好的紀律。我認為，從費用管理的角度來看，我們已經證明我們擁有相當嚴格的成本紀律文化。因此，我們將繼續依靠這一點，特別是如果我們的銷售疲軟，它會起起落落。

From a CFPB perspective, I think the way I would contextualize it for you is when we originally guided we said that our other revenue line would be down mid-teens for the year and it would be down mid-single-digits in the front half of the year.

從 CFPB 的角度來看，我認為我為您介紹的方式是，當我們最初指導時，我們說我們的其他收入線今年將下降到十幾位數，並且前半部分將下降到個位數左右今年的。

Well, we just completed the front half of the year and it was down 5%. And now, we said for the full year, it would be down mid-single digits. So, really that differential in the back half, it will be much more in line with the front half. And I think if you do that math, you'll get kind of the impact for the CFPB on the guide that we just updated. So, hopefully that hits on your three points

嗯，我們剛完成了上半年的工作，下降了 5%。現在，我們說全年的數字將下降到個位數左右。所以，實際上後半部的差異，它將與前半部更加一致。我認為，如果您進行數學計算，您將了解我們剛剛更新的指南對 CFPB 的影響。所以，希望這能擊中你的三點

Yeah. Thank you.

是的。謝謝。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Hi. Thanks a lot, Tom and Jill. On the core apparel footwear and the microscope that you're taking, which issues will be easier to fix in the nearer versus longer term? And on the guidance, Jill, on the raise, what happened regarding the top-line and just the mechanics of the guidance in terms of having a softer revenue? Thanks.

你好。非常感謝，湯姆和吉爾。在核心服裝鞋類和您正在觀察的顯微鏡下，哪些問題在近期和長期內更容易解決？在指導方面，吉爾，在加薪方面，就收入疲軟而言，就收入和指導機製而言，發生了什麼？謝謝。

Well, as far as the women's business, I think the junior business will be an easier business to turn around, because we can really leverage the marketplace in order to turn it around, because there's a lot of product out there, and it's quick turn. So, I think the trend business will be the easier piece of it. I think, some things like intimate apparel will be harder, just because it's a more traditional business and it's really driven by the brands overall.

嗯，就女性業務而言，我認為初級業務將是一個更容易扭虧為盈的業務，因為我們可以真正利用市場來扭轉局面，因為那裡有很多產品，而且轉變很快。所以，我認為趨勢業務將是其中更容易的一部分。我認為，像內衣這樣的事情會更難，因為它是一個更傳統的業務，而且它確實是由整體品牌驅動的。

So, I think that'll be harder. Trying to integrate more of the classic brands into the assortment will also take a little bit more time. Rebuilding our petite business, I think that will be something that we can react to fairly quickly, because we really went out of that business. So, I think just rebuilding the inventories, we'll be able to do that. But I think that I think we'll see progress quicker, as I mentioned in juniors, plus moving it back and putting it in the front of the store. I think that'll help a lot overall. Jill?

所以，我認為這會更難。嘗試將更多經典品牌融入產品中也需要更多時間。重建我們的小型業務，我認為這將是我們可以很快做出反應的事情，因為我們確實已經退出了該業務。所以，我認為只要重建庫存，我們就能夠做到這一點。但我認為我們會看到更快的進展，正如我在初級中提到的那樣，再加上將其移回商店前面。我認為這總體上會有很大幫助。吉爾？

Yeah. I think in terms of guidance, Oliver, the way I look at it is from a topline perspective, really centering the low end at the actuals that we just produced in the front half of the year. So, I'm saying that that would have no trend change from that. And then, the upside is really about the build of all the initiatives that we laid out, which is where we do have confidence.

是的。我認為就指導而言，奧利弗，我的看法是從營收的角度來看，真正將低端集中在我們今年上半年剛剛生產的實際情況上。所以，我的意思是，趨勢不會因此而改變。然後，積極的一面實際上是我們制定的所有舉措的建立，這是我們確實有信心的地方。

We continue to see Sephora outperform our expectations. It's doing incredibly well. We added another 140 stores. We have a lot of newness happening there, as well as learning from our last holiday around gifting and how we can lean into that more to make it even bigger. We have Babies R Us, which just literally set this month, and it really complements that younger customer. They're coming in for product that's complete white space for us.

我們繼續看到絲芙蘭的表現超出了我們的預期。它的表現非常好。我們又增加了 140 家商店。我們在那裡發生了很多新鮮事，也從上個假期中學到了關於送禮的知識，以及我們如何能夠更多地利用這一點，使其變得更大。我們推出了《Babies R Us》，這個月剛上映，它確實與年輕顧客相得益彰。他們來找我們的產品完全是空白。

So, it is a big opportunity for us. And then, impulse we've seen huge success with just bringing in those extra products. It does have a lower [AUR] drain, but it does have them come in and add that extra item into the basket, which has been a success for us as well. So that will go to another 200 stores.

所以，這對我們來說是一個很大的機會。然後，我們一衝動就看到了引進這些額外產品所取得的巨大成功。它的[AUR]消耗確實較低，但它確實讓它們進來並將額外的物品添加到購物籃中，這對我們來說也是成功的。因此，這將流向另外 200 家商店。

And then, just really hitting on some of those areas like Tom mentioned around the fashion element. We're going to have a bigger dress presentation in all stores, really even hitting on holiday dress, which wasn't something that we have typically done in the past, but really helping from a women's perspective. And then, new brand introductions across juniors, young men's, women's.

然後，真正觸及湯姆提到的時尚元素領域中的一些領域。我們將在所有商店進行更大規模的服裝展示，甚至推出節日服裝，這不是我們過去通常會做的事情，但從女性的角度來看確實有幫助。然後，推出青少年、年輕男裝、女裝的新品牌。

So, I think that's how I feel good about the top-line of it. And then, I think, we've proven with inventory management, since Tom has come in, we've been able to run inventory down even more than mid-single digits, which has really helped manage the margin, but giving ourselves room to make sure we can be competitive during a very promotional holiday season.

所以，我認為這就是我對它的頂線感覺良好的原因。然後，我認為，我們已經通過庫存管理證明了，自從湯姆進來後，我們已經能夠將庫存減少到中個位數以上，這確實有助於管理利潤，但也給我們自己留出了空間確保我們在促銷假期期間具有競爭力。

And then, I think the cost discipline on SG&A makes me -- we've confidently done that over the last several years, which helps us get to the op margin for the year. So, I think that's kind of how I looked at from a guidance perspective. Really the low end just saying we do nothing different and it stays on trend. So, it kind of feels like de-risk from that perspective, and then the initiatives can build us back up to the top end.

然後，我認為 SG&A 的成本紀律讓我——我們在過去幾年充滿信心地做到了這一點，這有助於我們實現今年的營運利潤。所以，我認為這就是我從指導角度看待的方式。真正的低端只是說我們沒有做任何不同的事情並且它保持潮流。因此，從這個角度來看，這感覺就像是降低了風險，然後這些舉措可以讓我們回到頂端。

Okay. Thanks. And a follow up. Are you more concerned on UPTs or traffic and how might that relate to what you're seeing? And second, what changed the most in terms of the health of the consumer, because we've had this choiceful-considered mixed consumer when we last spoke as well? Thanks.

好的。謝謝。並跟進。您更關心 UPT 還是流量？其次，就消費者的健康而言，什麼變化最大，因為當我們上次講話時，我們也遇到了這種經過深思熟慮的混合消費者？謝謝。

Yeah. I think the biggest thing we saw, one is, what makes me happy is I actually talked about positive transactions. And Oliver, I think that's probably the first time we talked about that in several years. So, we're seeing transactions go up and we're seeing conversion go up and that gives us indication that the newness we're bringing in is really resonating with the customer.

是的。我認為我們看到的最重要的事情是，讓我高興的是我實際上談論了積極的交易。奧利佛，我想這可能是我們幾年來第一次談論這個問題。因此，我們看到交易量上升，轉換率上升，這表明我們引入的新事物確實引起了客戶的共鳴。

What we're seeing is that middle income customer, that is our core customer, continues to be squeezed. And I think we've seen that they're being more discerning with what they're purchasing and that has been either less items because of the fact that they're spending some more money on a higher ticket item like a Sephora, or they're just spending less in general.

我們看到的是，中等收入客戶，也就是我們的核心客戶，繼續受到擠壓。我認為我們已經看到，他們對購買的商品更加挑剔，要么是因為他們花更多的錢購買絲芙蘭等高價商品而減少了商品數量，要么是他們購買了更多的商品。支出減少了。

So, I think the pressure from an AUR perspective. Some of the AUR, we introduced lower AUR items, home decor, lower AUR, impulse, lower AUR. So, some of it was just as the newness came in, it was in that forefront. If we think of what we're introducing in the back half of the year, bringing back fine jewelry into 200 stores, bringing in Babies R Us, like Tom mentioned, gear being a number one seller, those are all going to be higher-ticket items and we're seeing that resonate with the customer.

所以，我認為從AUR角度來看壓力。一些AUR，我們推出了較低AUR的物品，家居裝飾，較低AUR，衝動，較低AUR。所以，其中一些是隨著新鮮事物的出現而出現的，它就處於最前線。如果我們考慮到今年下半年我們將推出什麼，將高級珠寶帶回 200 家商店，引入 Babies R Us，就像 Tom 提到的那樣，裝備成為銷量第一，這些都會更高——門票項目，我們發現這引起了客戶的共鳴。

We know fine jewelry is something our customer misses. So, we just have to really deliver that back for her. So, I think that's how we can get back from an AUR perspective. But also expecting that that wall is going to be continue to be pressured and that's why we included the guide that we did for the back half of the year.

我們知道高級珠寶是我們的客戶所懷念的。所以，我們只需要真正為她回報。所以，我認為這就是我們從 AUR 角度回來的方式。但也預計這堵牆將繼續受到壓力，這就是為什麼我們包含了我們在今年下半年所做的指南。

Okay. Thank you. Best regards.

好的。謝謝。此致。

Thanks, Oliver.

謝謝，奧利佛。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Hi, good morning, everyone. Jill, as you mentioned, the conversion and traffic, which is obviously something new. As you think about the Babies R Us and some of the other new partnerships, where do you expect some of the biggest impact to come from? And then, Tom, on the category of home, what are you seeing there as opportunities going forward? Thank you.

嗨，大家早安。吉爾，正如你所提到的，轉換率和流量，這顯然是新的。當您考慮 Babies R Us 和其他一些新的合作夥伴關係時，您認為最大的影響來自哪裡？然後，湯姆，在家居領域，您認為未來的機會是什麼？謝謝。

Sure. I think for Babies R Us, it did just launch and we are going to be launching a registry to complement that and I think that happens at the beginning of October. So, I do think there's a large opportunity for us really first on that younger customer. I think as we have a registry really having that beginning part of their lifecycle from a family perspective having them come in. And early days, we are seeing a nice halo effect to the kids' business.

當然。我認為對於 Babies R Us 來說，它剛剛推出，我們將推出一個註冊表來補充它，我認為這會在 10 月初發生。所以，我確實認為我們首先在年輕客戶身上有很大的機會。我認為，我們有一個註冊表，從家庭的角度來看，確實是他們生命週期的開始部分，讓他們進來。

So, I think that really just helps us bring extra items into their basket as well from, a, how can we be more relevant to that customer. And not only do we have gear, we have all of the feeding and toys and accessories as well. So, I think those are quick add-ons that we can see come into the basket. So, I do think Babies R Us could be a larger impact not just for the sale of that product, but for the halo that it does for the store. But also really as we talked about earlier that Sephora customer is buying kids.

因此，我認為這確實有助於我們將額外的商品放入他們的購物籃中，以及我們如何與該客戶更加相關。我們不僅有裝備，還有所有的餵食、玩具和配件。所以，我認為這些是我們可以看到的快速附加元件。因此，我確實認為 Babies R Us 不僅會對該產品的銷售產生更大的影響，而且還會對其商店的光環產生更大的影響。但正如我們之前談到的，絲芙蘭顧客正在購買兒童產品。

So, really how to expand them to buy even more across the store and then continue to increase that 35% of attachment up higher. And I think Babies R Us can be a key place to do that. I also think some of the newness, Dana, that we've talked about in terms of relevancy of brands and fashion and just going to the market and being much more relevant from that perspective on chasing.

那麼，真正如何擴大他們在整個商店購買更多商品，然後繼續增加 35% 的附著力。我認為 Babies R Us 可以成為實現這一目標的關鍵場所。我還認為一些新鮮感，Dana，我們在品牌和時尚的相關性方面討論過，只是進入市場，從追逐的角度來看更加相關。

So, we're really chasing in a reactive way for things that the customer likes is going to be something that continues to benefit us and it's a muscle we're building. So, when we do it, it works really well. We just have to do it more broadly and more I think deep in some of the areas that are just getting started and I think that could be a large benefit for us as well.

因此，我們實際上正在以被動的方式追逐客戶喜歡的東西，這些東西將繼續使我們受益，這是我們正在增強的力量。所以，當我們這樣做時，效果非常好。我們只需要在一些剛起步的領域進行更廣泛、更深入的思考，我認為這對我們來說也有很大的好處。

And I would just say I think there's a lot of partnerships that Tom and the merchant teams are out there looking for that we're excited about as well. So, I think there's going to be a lot more newness coming into the store, which I think is important to our customer.

我只想說，我認為湯姆和商人團隊正在尋找很多合作關係，我們也對此感到興奮。所以，我認為商店裡將會有更多的新鮮事物，我認為這對我們的顧客來說很重要。

Yeah, as far as the home business goes, I feel very good about the home in terms of the progress the team has made their overall. Home decor has been very good, not only in the seasonal decor, but also in everyday decor. Yeah, I'm looking forward to the holiday season. Team has put together an incredible holiday decor presentation, which will be right in the front of the store as it was last year, but you'll see a significant build in terms of the presentation there overall.

是的，就主場業務而言，就球隊整體的進展而言，我對主場感覺非常好。家居裝飾一直非常好，不僅在季節性裝飾上，而且在日常裝飾上也是如此。是的，我很期待假期的到來。團隊整理了一個令人難以置信的節日裝飾展示，它將像去年一樣放在商店的前面，但你會看到整體展示的顯著構建。

The pet business has been extremely strong overall, and we see that building as well. The big issue we have there is, we have a very large electrics business, which is hurting us. Our bedding business needs to be turned around overall. The wall art business has been good, and obviously, that's part of the core business, but we are seeing a lot of progress there.

寵物業務總體上非常強勁，我們也看到了這一趨勢的發展。我們面臨的一個大問題是，我們擁有非常龐大的電力業務，這對我們造成了傷害。我們的床上用品業務需要全面扭轉局面。牆壁藝術業務一直很好，顯然，這是核心業務的一部分，但我們在那裡看到了很多進展。

I feel very good about that. We just have to get over the hurdle of the electrics business and we have to rebuild the bedding business. But in general, I think the team has done a very nice job of repositioning the home business for growth. The other thing that we're excited about is our entire gifting presentation there as well. But again, we look forward to the back half of the year to see some growth there.

我對此感覺很好。我們只需要克服電氣業務的障礙，我們必須重建床上用品業務。但總的來說，我認為團隊在重新定位家庭業務以促進成長方面做得非常好。另一件讓我們興奮的事情是我們在那裡的整個禮品展示。但我們再次期待下半年能看到一些成長。

Thank you.

謝謝。

Thank you. Well, I want to thank everyone for listening on the call today. Have a good day.

謝謝。嗯，我要感謝大家今天收聽電話會議。祝你有美好的一天。

And this concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。