Leslie's Inc (LESL) 2024 Q4 法說會逐字稿

Good afternoon and welcome to the Fiscal Fourth Quarter and Full Year 2024 earnings conference call for Leslie's. (Operator Instructions) As a reminder, this conference call is being recorded and will be available for replay later today on the company's website.

下午好，歡迎參加 Leslie's 的第四財季和 2024 年全年財報電話會議。（操作員說明）謹此提醒，本次電話會議正在錄製中，並將於今天稍晚在公司網站上重播。

I will now turn the call over to Matt Skelly, Vice President of Investor Relations

我現在將把電話轉給投資者關係副總裁馬特‧斯凱利 (Matt Skelly)

Thank you, and good afternoon. I would like to remind everyone that comments made today may include forward-looking statements which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations.

謝謝你，下午好。我想提醒大家，今天發表的評論可能包括前瞻性陳述，這些陳述受到重大風險和不確定性的影響，可能導致公司的實際結果與管理層目前的預期有重大差異。

These statements speak as of today and will not be updated in the future if circumstances change. Please review the cautionary statements and risk factors contained in the company's earnings press release and recent filings with the SEC.

這些聲明截至今天，如果情況發生變化，將來不會更新。請查看該公司收益新聞稿和最近向美國證券交易委員會提交的文件中包含的警示性聲明和風險因素。

During the call today, management will refer to certain non-GAAP financial measures. A reconciliation between the GAAP and non-GAAP financial measures can be found in the company's earnings press release, which was furnished to the SEC today and posted to the Investor Relations section of Leslie's website at ir.lesliespool.com.

在今天的電話會議中，管理階層將參考某些非公認會計準則財務指標。GAAP 和非 GAAP 財務指標之間的調整可以在該公司的收益新聞稿中找到，該新聞稿已於今天提交給 SEC，並發佈在 Leslie 網站 ir.lesliespool.com 的投資者關係部分。

For this quarter, we have opted not to post an earnings presentation as we continue to refine our materials under our new Chief Executive Officer. On the call today are Jason McDonell, Chief Executive Officer; and Scott Bowman, Chief Financial Officer.

在本季度，我們選擇不發布收益報告，因為我們在新任執行長的領導下繼續完善我們的材料。今天參加電話會議的是執行長 Jason McDonell；和財務長斯科特·鮑曼。

With that, I will turn the call over to Jason.

這樣，我會將電話轉給傑森。

Thanks Matt and thank you all for joining us this afternoon. I'd like to take this opportunity to share how appreciative I am, to serve Leslie's customers, team members and shareholders as our new CEO. I'm not only a longtime admirer of the 60-year legacy of the Leslie's brand, but I'm also a longtime customer, and I'd like to thank the Leslie's frontline team, our corporate team members and our Board of Directors for the warm welcome I've received.

謝謝馬特，也謝謝大家今天下午加入我們。我想藉此機會表達我對作為新任執行長為 Leslie 的客戶、團隊成員和股東提供服務的感激之情。我不僅是 Leslie's 品牌 60 年傳承的長期崇拜者，也是我們的長期客戶，我要感謝 Leslie's 的前線團隊、我們的企業團隊成員和我們的董事會。

Also to our shareholders, I want to make it clear that shareholder value creation, is top of mind as I enter the role. I believe Leslie's has a strong set of near term and long-term opportunities, and the team and I are very motivated to build on the legacy of Leslie's, and ensure that we perform while we transform.

對於我們的股東，我想明確表示，在我入職時，創造股東價值是首要考慮的事情。我相信 Leslie's 擁有一系列強大的近期和長期機會，我和團隊都非常積極地繼承 Leslie's 的遺產，並確保我們在轉型時表現出色。

Understanding the needs of our customers and our employees who serve them, is critically important to me, and I plan on putting the customer at the center of everything we do. Since joining the Leslie's team in September, I've had the pleasure of visiting over 40 stores, multiple distribution centers and regional commercial service centers, across more than half a dozen states including California, Texas, Florida, Arizona, Colorado and North Carolina.

了解客戶和為他們服務的員工的需求對我來說至關重要，我計劃將客戶置於我們所做的一切的中心。自從9月加入Leslie's團隊以來，我有幸參觀了超過6個州的40多家商店、多個配送中心和區域商業服務中心，包括加州、德州、佛羅裡達州、亞利桑那州、科羅拉多州和北卡羅來納州。

While I'm less than 80 days in my role, I've captured a lot of learnings in that short period of time. And while spending time in the market, I've been really pleased to witness the pride and expertise with, which our team members care for the customer. When I step back and put my customer hat on, one thing really resonates with me. We do a lot more than just sell pool supplies.

雖然我任職時間還不到 80 天，但我在這麼短的時間內學到了很多東西。在市場上度過的時間裡，我非常高興地見證了我們的團隊成員對客戶的關心和專業知識。當我退後一步，戴上我的客戶帽子時，有一件事確實引起了我的共鳴。我們做的不僅僅是銷售泳池用品。

At Leslie's, our purpose is to enable joy through customized pool care solutions. And when you're in our stores, you can see and feel the passion of our purpose, with our frontline team members. They take pride in serving customers, and I've seen this exemplified with Clara in Texas, Don in Florida and Scott in Arizona.

在 Leslie's，我們的目標是透過客製化的泳池護理解決方案帶來歡樂。當您進入我們的商店時，您可以看到並感受到我們一線團隊成員對我們目標的熱情。他們為服務客戶而感到自豪，我在德克薩斯州的克拉拉、佛羅裡達州的唐和亞利桑那州的斯科特身上看到了這一點。

I saw this firsthand when a customer came into our store and called our general manager by their first name. That relationship mindset, whether it's assisting a residential or as I call it, a DIY customer with our best-in-class AccuBlue water testing technology, helping our local pros with liquid chlorine, so they can get on their way or helping our retail customers with an equipment repair. Our employees' commitment to serve is unwavering.

當一位顧客走進我們的商店並直呼總經理的名字時，我親眼目睹了這一點。這種關係心態，無論是幫助住宅客戶還是我所說的 DIY 客戶，利用我們一流的 AccuBlue 水測試技術，幫助我們當地的專業人士使用液氯，以便他們能夠繼續前進，或者幫助我們的零售客戶與設備維修。我們的員工對服務的承諾是堅定不移的。

Leslie's represents an empowered team that provides trusted care for DIY and PRO customers, with customized pool and spa care solutions. I have also had the opportunity, to connect with many of our vendor partners, and each conversation has deepened my appreciation for this industry. The pool industry has experienced one of the most dynamic five-year periods in its history, which of course Leslie's has experienced as well.

Leslie's 代表著一支強大的團隊，為 DIY 和 PRO 客戶提供值得信賴的護理，並提供客製化的泳池和水療護理解決方案。我也有機會與我們的許多供應商合作夥伴建立聯繫，每次談話都加深了我對這個行業的欣賞。泳池產業經歷了歷史上最具活力的五年時期之一，萊斯利的泳池當然也經歷過。

We believe our industry has been, and will remain advantaged for the long-term. The installed base of pools and spas at over 14 million bodies of water, with a total addressable market of approximately $15 billion, typically grows 1% to 2% every year. And those pools need to be maintained.

我們相信，我們的行業一直並將長期保持優勢。超過 1,400 萬個水體的泳池和水療中心的安裝基礎，潛在市場總額約為 150 億美元，通常每年增長 1% 至 2%。這些池需要維護。

As we turn the page to the next chapter of Leslie's history, one observation has been abundantly clear. Sharpen our focus on the fundamentals of retailing, presents a compelling opportunity and that's just what we plan to do. So what does that mean? It's about getting back to basics. Blocking and tackling retail 101.

當我們翻到萊斯利歷史的下一章時，有一個觀察結果已經非常清晰了。加強我們對零售業基本面的關注，提供了一個引人注目的機會，而這正是我們計劃要做的。那麼這意味著什麼呢？這是關於回歸基礎。封鎖和打擊零售業 101.

At Leslie's, we remain the only national large scale omnichannel player in aftermarket pool and spa care that, serves both DIY and pro customers. In addition, we are closest to the pools. In fact, our 1,000 plus store network is within 20 miles of 80% of the pools in the United States. In the Sunbelt, we're even closer. With almost 88% of our pools within 10 miles of a Leslie store. Our footprint remains a major competitive advantage that we plan to leverage to deliver more value to our DIY and pro customers through our omnichannel approach.

在 Leslie's，我們仍然是售後泳池和水療護理領域唯一一家全國性大型全通路參與者，為 DIY 客戶和專業客戶提供服務。此外，我們距離泳池最近。事實上，我們的 1,000 多家商店網路距離美國 80% 的泳池均在 20 英里範圍內。在陽光地帶，我們更加接近。我們近 88% 的泳池距離 Leslie 商店 10 英里以內。我們的足跡仍然是一個主要的競爭優勢，我們計劃利用這一優勢，透過我們的全通路方法為我們的 DIY 和專業客戶提供更多價值。

In addition to our proximity advantage, Leslie's has a well-known pool, expertise and capabilities that, are key to personalized customer care. Our brand strength and NPS scores are strong, driven by our ability to serve the DIY and PRO customer quickly and efficiently. So we believe our industry and our company remains advantaged.

除了鄰近優勢之外，Leslie's 還擁有知名人才庫、專業知識和能力，這些都是個人化客戶服務的關鍵。我們的品牌實力和 NPS 得分很強，這得益於我們快速且有效率地為 DIY 和 PRO 客戶提供服務的能力。因此，我們相信我們的行業和公司仍然具有優勢。

The next logical question is, how do we leverage those advantages even better going forward? What you can expect from Leslie's is a clear focus on fundamentals, in that we plan to leverage our competitive advantages to drive long-term profitable growth. It starts with three strategic themes customer centricity, convenience and asset utilization.

下一個合乎邏輯的問題是，我們如何更好地利用這些優勢來繼續前進？您可以對萊斯利的期望是明確關注基本面，因為我們計劃利用我們的競爭優勢來推動長期獲利成長。它從三個策略主題開始：以客戶為中心、便利性和資產利用率。

Each theme has a set of related priorities and defined initiatives, intended to deliver sustainable, profitable growth and fuel long-term shareholder value. I will speak to these three themes today, and plan to expand on them each quarter in fiscal 2025. The first strategic theme is customer centricity. As I noted, we are putting the customer at the center of everything we do. Since 1963, the Leslie's brand has been synonymous with trust and expert care. While our marketing research still indicates these words are associated with our brand, I believe we can take these to the next level in the future.

每個主題都有一組相關的優先事項和明確的舉措，旨在實現可持續的獲利成長並推動長期股東價值。我今天將討論這三個主題，並計劃在 2025 財年每季擴展這些主題。第一個戰略主題是以客戶為中心。正如我所指出的，我們將客戶置於我們所做的一切的中心。自 1963 年以來，Leslie's 品牌一直是信任和專業護理的代名詞。雖然我們的行銷研究仍然表明這些詞與我們的品牌相關，但我相信我們將來可以將這些詞提升到一個新的水平。

Continuing to elevate our customer care, through pool expertise for the DIYer and the PRO will make it even more rewarding to shop with us. As we look to the future, we can elevate this experience with a more personalized approach. The customers who choose to take care of their pool, know the value of Leslie's. In fact, over eight out of 10 DIY customers are members of our loyalty program that, is extremely powerful.

透過為 DIY 者和專業人士提供專業知識，繼續提升我們的客戶服務水平，這將使在我們這裡購物變得更加有價值。展望未來，我們可以透過更個人化的方法來提升這種體驗。選擇維護泳池的顧客都知道 Leslie's 的價值。事實上，十分之八的 DIY 客戶都是我們忠誠度計劃的會員，該計劃非常強大。

We know a lot about them and their pool including location, size of their pool, whether it is a salt or chlorine pool, equipment preferences, the health of their pool following a water test, and even their last purchase of an inflatable for their family. This wealth of information allows us, to know our customer more deeply, offer more personalized solutions and inform us, on what winning in service can be.

我們對他們和他們的泳池了解很多，包括位置、泳池大小、是鹽池還是氯池、設備偏好、水測試後泳池的健康狀況，甚至是他們最後一次為家人購買充氣設備。這些豐富的資訊使我們能夠更深入地了解客戶，提供更個人化的解決方案，並告訴我們如何在服務中獲勝。

Having had experience in loyalty programs, I believe that we have an ability to elevate our loyalty program, even further for both the retail customer and the PRO. Our primary goals will be to increase the awareness of the program, to attract new loyalty members and enhance its value proposition to the loyalty member and for Leslie's.

憑藉在忠誠度計劃方面的經驗，我相信我們有能力提升我們的忠誠度計劃，甚至進一步提高零售客戶和專業人士的忠誠度計劃。我們的主要目標是提高該計劃的知名度，吸引新的忠誠會員並增強其對忠誠會員和萊斯利的價值主張。

Lastly, in this customer centricity theme, I believe we can build traffic by increasing awareness around our best-in-class water testing, our differentiated expertise localized for the customer's neighborhood, our product availability and by customized services leveraging our omnichannel approach.

最後，在這個以客戶為中心的主題中，我相信我們可以透過提高對我們一流的水測試、針對客戶社區本地化的差異化專業知識、我們的產品可用性以及利用我們的全渠道方法的定制服務的認識來建立流量。

Our second strategic theme is convenience. We believe this theme is core to us winning within the DIY and PRO customer. Being closest to the pools with a best-in0class footprint, is a key competitive advantage to helping customers with their pool needs. Whether it's a part a PRO needs to make their customers equipment work, specialty chemicals for a DIYer to balance their pool to be clean, safe and beautiful, or that special pool toy to brighten a child's day, we want to be able to satisfy any pool need quickly.

我們的第二個策略主題是便利。我們相信這個主題是我們贏得 DIY 和 PRO 客戶的核心。距離泳池最近且擁有一流的佔地面積，是幫助客戶滿足泳池需求的關鍵競爭優勢。無論是專業人士讓其客戶的設備正常工作所需的零件，還是讓DIY 愛好者平衡泳池清潔、安全和美觀的特種化學品，還是讓孩子的一天充滿歡樂的特殊泳池玩具，我們希望能夠滿足任何人的需求。

Convenience is such an important aspect, of being a trusted total solution provider. Time to solve a customer's problem often determines who wins the sale, and who is key to delivering on our customers' expectations. A major element of enabling this through inventory, and store assortment with a solution orientation, we're reframing availability with a customer centric and convenience approach in terms of minutes, hours and days.

作為值得信賴的整體解決方案提供者，便利性是一個非常重要的面向。解決客戶問題的時間通常決定誰贏得銷售，以及誰是實現客戶期望的關鍵。透過以解決方案為導向的庫存和商店分類來實現這一目標的一個主要要素是，我們正在以以客戶為中心的便捷方法在分鐘、小時和天數方面重新建立可用性。

In our portfolio, some products have customer availability expectation of minutes, they have a need and time is of the essence. Included as part of that thinking, is our new inventory segmentation. I like to call never outs. For these items we measure in minutes and we have to have the best in stock performance and we can never be out.

在我們的產品組合中，有些產品的客戶可用性期望為幾分鐘，他們有需求，時間至關重要。作為這個想法的一部分，我們新的庫存細分。我喜歡打電話永不出局。對於這些商品，我們在幾分鐘內進行測量，我們必須擁有最佳的庫存表現，我們永遠不會缺貨。

To complement to this line of thinking, we are evolving Leslie's focus towards localized assortment. There are regional and local differences in the pool market, and we need to have the right inventory in the right place at the right time. It's about being able to get to the place of precision inventory in our local markets.

為了補充這一思路，我們正在將 Leslie 的重點轉向在地化分類。泳池市場有區域和地方差異，我們需要在正確的時間、正確的地點擁有正確的庫存。這是關於能夠到達我們當地市場的精確庫存的地方。

This precision inventory approach, will better leverage our existing advantage footprint. It can also speed up reverse logistics, lower inventory adjustment expense and reduce shrink. To reiterate, this is about convenience as a competitive advantage and we expect improving inventory management, will help accelerate our time to serve.

這種精確的庫存方法將更好地利用我們現有的優勢足跡。它還可以加快逆向物流、降低庫存調整成本並減少損耗。重申一下，這是將便利性作為一種競爭優勢，我們預計改善庫存管理將有助於加快我們的服務時間。

Our third and final strategic theme is asset utilization. The areas of focus in improving asset utilization include our physical assets, our technology and data assets, and our human capital. First, on improving our physical asset utilization, I've already discussed our best-in-class footprint including our 1,000 plus stores, but our physical assets also include our strategic network of distribution centers, and commercial service centers.

我們的第三個也是最後一個策略主題是資產利用。提高資產利用率的重點領域包括我們的實體資產、我們的技術和數據資產以及我們的人力資本。首先，關於提高我們的實體資產利用率，我已經討論了我們一流的足跡，包括我們的 1,000 多家商店，但我們的實體資產還包括我們的配送中心和商業服務中心的策略網絡。

In fiscal 2025, we expect to add approximately three stores to our footprint. That said, the majority of our attention will be getting more out of our combination of assets to drive higher organic sales. Expanding average sales per store will drive comp growth, fueling positive leverage through the P&L.

到 2025 財年，我們預計將增加約 3 家門市。也就是說，我們的大部分注意力將集中在如何充分利用我們的資產組合來推動更高的有機銷售額。擴大每家商店的平均銷售額將推動公司成長，並透過損益表推動積極的槓桿作用。

Internally, the company has made significant investments over the past couple of years to enhance our technical capabilities such as adding the Blue Yonder tool, and I believe we can do more to maximize the value that these strategic investments can bring to our processes, and our operations. We will plan to also prioritize incremental investments that enhance our ability to serve the customer, as we pursue our strategic objectives for the coming year.

Internally, the company has made significant investments over the past couple of years to enhance our technical capabilities such as adding the Blue Yonder tool, and I believe we can do more to maximize the value that these strategic investments can bring to our processes, and our營運.在我們追求來年的策略目標時，我們還將計劃優先考慮增量投資，以增強我們為客戶服務的能力。

Finally, in the area of human capital, we believe we can use our national scale and local community presence to make a stronger positive impact in the communities we serve. As the industry's market leader, Leslie's workforce is dedicated to making human capital, a positive differentiator through the expertise we provide, our pool and spa customers, and the care they entrust in us to keep their pool clean, safe and beautiful.

最後，在人力資本領域，我們相信我們可以利用我們的全國規模和當地社區的存在，為我們所服務的社區產生更強大的正面影響。作為行業的市場領導者，Leslie 的員工致力於透過我們提供的專業知識、我們的泳池和水療客戶以及他們委託我們保持泳池清潔、安全和美麗的護理，使人力資本成為積極的差異化因素。

These three strategic themes, customer centricity, convenience and asset utilization will be supported by empowering our teams, to drive a continuous improvement culture. At Leslie's, we will focus on the customer and the fundamentals and prioritize what helps achieve our objectives and deprioritize what does not.

以客戶為中心、便利性和資產利用率這三個策略主題將透過授權我們的團隊來支持，以推動持續改進的文化。在 Leslie's，我們將專注於客戶和基本面，並優先考慮有助於實現我們目標的事情，並降低無助於我們目標的事情的優先順序。

Turning to our results for the fourth quarter and for fiscal 2024, sales for the fiscal fourth quarter were $398 million, down 8%, which was in line with our revised guidance from July. Sales for fiscal 2024, were $1.33 billion, down 8%. Also in line with our expectations.

轉向我們第四季和 2024 財年的業績，第四財季的銷售額為 3.98 億美元，下降 8%，這與我們 7 月修訂後的指導一致。2024 財年銷售額為 13.3 億美元，下降 8%。也符合我們的預期。

Adjusted earnings per share were $0.02 for the fourth quarter, and a loss of $0.01 for the year. Adjusted EBITDA in the fourth quarter was $43 million and was $109 million for the full year. Consistent with our primary capital allocation priority of reducing debt, we expect to paydown approximately $25 million of our debt balance during the current quarter. Scott will detail further our financial performance for the fourth quarter and full year during his prepared remarks.

第四季調整後每股收益為 0.02 美元，全年虧損 0.01 美元。第四季調整後 EBITDA 為 4,300 萬美元，全年調整後 EBITDA 為 1.09 億美元。根據我們減少債務的主要資本分配優先事項，我們預計本季將償還約 2,500 萬美元的債務餘額。斯科特將在準備好的演講中進一步詳細介紹我們第四季和全年的財務表現。

During the first seven weeks of the fiscal year, trends were in line with our expectations. We had some positive demand activity from post-storm cleanup in Florida, and throughout the Southeast. However, as I mentioned earlier, the macro environment continues to be dynamic and we're in the process of orienting our business, around our three key strategic themes and related initiatives.

在本財年的前七週，趨勢符合我們的預期。佛羅裡達州和整個東南部的風暴後清理工作帶來了一些積極的需求活動。然而，正如我之前提到的，宏觀環境仍然充滿活力，我們正在圍繞我們的三個關鍵策略主題和相關舉措來調整我們的業務。

Given these factors, at this time we're only providing financial guidance for the first quarter of 2025, which includes top line sales expected in a range of down 3% to up 1% year-over-year. We continue to form our thoughts on the year ahead, and expect to update the market with some of that thinking on our next earnings call.

考慮到這些因素，目前我們僅提供 2025 年第一季的財務指導，其中包括預計營收年減 3% 至成長 1% 的範圍。我們將繼續形成對未來一年的想法，並期望在下一次財報電話會議上向市場通報一些最新的想法。

I'll now turn it over to Scott to give his remarks. Scott?

現在我將把它交給斯科特發表講話。史考特？

Thank you Jason, and good afternoon everyone. I would like to remind everyone that, my comments on our quarterly and annual performance, are on a year-over-year basis unless otherwise indicated. On the top line, we finished the fiscal fourth quarter and year in line, with our revised guidance we communicated in July. Our profitability was mainly impacted by items that we expect to be one-time in nature, which I will address in my prepared remarks.

謝謝傑森，大家下午好。我想提醒大家，除非另有說明，我對我們季度和年度業績的評論都是按年計算的。最重要的是，我們按照 7 月發布的修訂後的指導方針完成了第四財季和全年的工作。我們的獲利能力主要受到我們預計一次性的項目的影響，我將在準備好的發言中討論這一點。

I will also provide commentary on how we see the start to the year, including our first quarter fiscal 2025 guidance. But first I'll take you through our fourth quarter, and annual performance for fiscal 2024. For the fiscal fourth quarter, we reported total sales of $398 million, a decrease of 8%, driven primarily by a continued softness in traffic and larger ticket and discretionary products.

我也會就我們如何看待今年的開局發表評論，包括我們對 2025 財年第一季的指導。但首先我將向您介紹我們的第四季以及 2024 財年的年度業績。第四財季，我們報告的總銷售額為 3.98 億美元，下降 8%，這主要是由於客流量持續疲軟以及門票和自由支配產品的持續疲軟。

Comparable sales decreased 8.3% and non-comparable sales contributed $1.5 million in the quarter. With respect to sales trends by consumer group, residential pool declined 10%, PRO pool declined 1%, and residential hot tub declined 5%. We were encouraged to see relative strength in our PRO pool consumer group, which outperformed with a low single-digit sales decline through the second half of the fiscal year, which is our peak pool season.

本季可比銷售額下降 8.3%，不可比銷售額貢獻 150 萬美元。從消費群體的銷售趨勢來看，住宅泳池下降了 10%，PRO 泳池下降了 1%，住宅熱水浴缸下降了 5%。我們很高興看到我們的專業池消費群體的相對實力，該群體的表現優於本財年下半年，即我們的池旺季，銷售額呈低個位數下降。

That compares to a total company sales decline of just over 7% during the same period. This consumer group has proven to be resilient during a very dynamic season, and we see more opportunity for this group going forward.

相比之下，同期公司總銷售額下降了 7% 多一點。事實證明，這個消費者群體在一個非常活躍的季節裡具有彈性，我們看到這個群體未來有更多的機會。

Gross profit was $143 million, compared to $160 million in the same period last year, and gross margin rate decreased 105 basis points to 36%. The decline in rate was largely due to 77 basis points of deleverage on occupancy expense, and to a lesser extent deleverage on DC costs.

毛利為1.43億美元，去年同期為1.6億美元，毛利率下降105個基點至36%。利率下降主要是因為入住費用去槓桿化77個基點，以及較小程度上因資料中心成本去槓桿化所致。

Additionally, we had a one-time item of approximately $5 million in the quarter, related to rebates and warranties on a vendor contract. This contract has since been revised to eliminate this issue for 2025 and going forward.

此外，本季我們還有一項價值約 500 萬美元的一次性項目，與供應商合約的回扣和保固相關。此後，該合約已進行修訂，以在 2025 年及以後消除此問題。

Excluding this one-time item, gross margin would have been 37.3%, an increase of 20 basis points versus the prior year. SG&A was $117 million for the quarter, a decline of 4% or $5 million and represented 29% of sales. We continue to make solid progress on our cost management initiatives, which we expect to help fuel our operating leverage, when we return to positive sales growth.

剔除這項一次性項目，毛利率將為37.3%，比前一年增加20個基點。本季 SG&A 為 1.17 億美元，下降 4%，即 500 萬美元，佔銷售額的 29%。我們繼續在成本管理措施方面取得紮實進展，預計當我們恢復正銷售成長時，這將有助於提高我們的營運槓桿。

Fourth quarter adjusted EBITDA was $43 million, compared to $59 million in the same period last year and was primarily impacted by softer sales, and a one-time gross margin item partially offset by lower SG&A expense. Interest expense was $17 million in the quarter, approximately flat compared to the same period last year.

第四季調整後 EBITDA 為 4,300 萬美元，而去年同期為 5,900 萬美元，主要受到銷售疲軟以及一次性毛利率項目的影響，但 SG&A 費用下降部分抵消了這一影響。本季利息支出為 1,700 萬美元，與去年同期基本持平。

Adjusted net income was $4 million, compared to $26 million in the same period last year, and adjusted diluted earnings per share was $0.02, compared to $0.14 in the same period last year. Diluted weighted average shares outstanding were $185 million.

調整後淨利為 400 萬美元，去年同期為 2,600 萬美元；調整後攤薄每股收益為 0.02 美元，去年同期為 0.14 美元。稀釋後加權平均已發行股票為 1.85 億美元。

Now turning to our fiscal full year results. For fiscal 2024, total sales were $1.33 billion, a decrease of 8% compared to the prior year, with comparable sales down 8.8%. Non-comparable sales totaled $8 million for the year. As mentioned earlier, our total sales were in line with our revised guidance, communicated in our July release.

現在轉向我們的全年財務表現。2024 財年，總銷售額為 13.3 億美元，較上年下降 8%，可比銷售額下降 8.8%。該年度非可比銷售額總計 800 萬美元。如前所述，我們的總銷售額符合我們在 7 月發布的報告中傳達的修訂後的指導方針。

With respect to trends by consumer group, sales for residential pool declined 9%, PRO pool declined 4%, and residential hot tub declined 9%. While we experienced another year of softness in our core residential category, we were encouraged by sequential improvement in our PRO pool, and hot tub consumer groups. We expect further improvement across our consumer groups in fiscal 2025, as industry conditions continue to normalize, though as Jason noted, the macroeconomic environment remains dynamic.

從消費族群趨勢來看，住宅泳池銷售額下降 9%，PRO 泳池銷售額下降 4%，住宅熱水浴缸銷售額下降 9%。雖然我們的核心住宅類別又經歷了一年的疲軟，但我們的專業池和熱水浴缸消費者群體的連續改善令我們感到鼓舞。我們預計，隨著產業狀況繼續正常化，我們的消費者群體在 2025 財年將進一步改善，儘管正如 Jason 所指出的那樣，宏觀經濟環境仍然充滿活力。

Gross profit was $477 million, compared to $548 million in 2023, and gross margin rate decreased 193 basis points to 35.9%. The year-over-year decline was primarily due to headwinds from the June 2023 chemical price actions, the expensing of previously capitalized DC costs and deleverage on occupancy costs. These were partially offset by favorability in inventory adjustments and DC costs.

毛利為 4.77 億美元，而 2023 年為 5.48 億美元，毛利率下降 193 個基點至 35.9%。年比下降主要是由於 2023 年 6 月化學品價格走勢、先前資本化的 DC 成本費用化以及佔用成本去槓桿化帶來的阻力。這些被庫存調整和 DC 成本的優惠部分抵消。

Full year SG&A was $420 million, down $26 million from a year ago and represented 31.6% of sales. We continue to look for further opportunities, to optimize our cost structure, as we focus on increasing asset utilization across the company.

全年 SG&A 為 4.2 億美元，比去年同期減少 2,600 萬美元，佔銷售額的 31.6%。我們繼續尋找更多機會來優化我們的成本結構，因為我們專注於提高整個公司的資產利用率。

Fiscal 2024, adjusted EBITDA was $109 million, compared to $168 million in the prior year, and adjusted net income was a loss of $1 million, compared to income of $51 million in the prior year. Adjusted EBITDA was impacted primarily by lower sales, partially offset by favorability in SG&A expense.

2024 財年，調整後 EBITDA 為 1.09 億美元，上一年為 1.68 億美元，調整後淨收入虧損 100 萬美元，而上一年營收為 5,100 萬美元。調整後的 EBITDA 主要受到銷售額下降的影響，但部分被 SG&A 費用的優惠所抵銷。

Interest expense was $70 million for fiscal 2024, an increase of $5 million compared to the prior year, which was primarily due to higher interest rates. Adjusted diluted earnings per share was a loss of $0.01 in fiscal 2024, compared to income of $0.28 in the same period last year.

2024 財年的利息支出為 7,000 萬美元，比前一年增加 500 萬美元，主要是由於利率上升。2024 財年調整後攤薄每股收益虧損 0.01 美元，去年同期收益為 0.28 美元。

Diluted weighted average shares outstanding were 185 million. Related to income tax expense, we established a valuation allowance of approximately $11 million in the quarter, in order to provide an offset to our deferred tax assets. This balance is subject to change, as the realization of future deferred tax assets changes over time.

稀釋加權平均流通股數為1.85億股。與所得稅費用相關，我們在本季度設立了約 1,100 萬美元的估值備抵，以抵消我們的遞延稅資產。由於未來遞延稅資產的實現會隨著時間的推移而變化，因此該餘額可能會發生變化。

Moving to the balance sheet, we ended fiscal 2024, with cash and cash equivalents of $109 million, compared to $55 million in fiscal 2023. The increase was primarily due to significant efforts by the team, to reduce inventory through improved analytics and operational efficiencies. Inventory ended the year at $234 million, a decrease of $78 million or 25%, compared to the prior year. Even as our in stock position service metrics, and Net Promoter Scores all remained very strong.

轉向資產負債表，2024 財年結束時，我們的現金和現金等價物為 1.09 億美元，而 2023 財年為 5,500 萬美元。這一成長主要歸功於團隊的巨大努力，透過改進分析和營運效率來減少庫存。年終庫存為 2.34 億美元，比上年減少 7,800 萬美元，即 25%。即使我們的庫存位置服務指標和淨推薦值仍然非常強勁。

At the end of fiscal 2024, we had $784 million outstanding on our secured term loan, and no amounts outstanding on our revolving credit facility. This compares the $790 million on our term loan, and a zero balance on a revolver at the end of fiscal 2023. Overall, our debt levels were $6 million lower than a year ago and our leverage ratio was 6.2 times. The effective interest rate on our term loan was 8.1% for fiscal 2024, compared to 8.2% in the prior year.

截至 2024 財年末，我們的擔保定期貸款未償還金額為 7.84 億美元，循環信貸額度沒有未償還金額。相比之下，我們的定期貸款為 7.9 億美元，而 2023 財年末左輪手槍餘額為零。總體而言，我們的債務水準比一年前減少了 600 萬美元，槓桿率為 6.2 倍。2024 財年我們定期貸款的實際利率為 8.1%，而前一年為 8.2%。

With that, I'd like to turn to our first quarter of fiscal 2025 outlook. Considering our recent CEO transition, we are providing our outlook for only the first quarter of fiscal 2025, at this time. Our first quarter outlook reflects expectations for continued softness in larger ticket, and discretionary categories and a balanced view of year-to-date company performance, in the current macroeconomic environment.

接下來，我想談談我們對 2025 財年第一季的展望。考慮到我們最近的執行長換屆，我們目前僅提供 2025 財年第一季的展望。我們對第一季的展望反映了在當前宏觀經濟環境下，對大宗商品和非必需品類別持續疲軟的預期，以及對今年迄今公司業績的平衡看法。

As Jason outlined earlier, we believe we have a great opportunity to improve how we serve the customer, leveraging our themes of customer centricity, convenience and asset utilization. We expect these strategic themes and resulting initiatives, to help drive sales and market share growth, and to produce incremental efficiencies in working capital and capital spending.

正如 Jason 之前所概述的那樣，我們相信我們有很好的機會利用我們以客戶為中心、便利性和資產利用率的主題來改善我們為客戶提供服務的方式。我們預計這些策略主題和由此產生的舉措將有助於推動銷售和市場份額的成長，並提高營運資本和資本支出的效率。

All combined, we are working to maximize free cash flow generation to serve our number one capital allocation priority, the reduction of debt, and corresponding leverage levels. While we won't see these initiatives contribute meaningfully to our first quarter results, we expect them to begin contributing to our performance later in fiscal 2025.

總之，我們正在努力最大限度地產生自由現金流，以服務我們的第一資本配置優先事項、減少債務和相應的槓桿水平。雖然我們不會看到這些舉措對我們第一季的業績做出有意義的貢獻，但我們預計它們將在 2025 財年晚些時候開始為我們的業績做出貢獻。

For the first quarter of fiscal 2025, we expect the following sales of $169 million to $176 million, adjusted EBITDA of negative $29 million to negative $27 million, adjusted net loss of $39 million to $37 million, adjusted diluted EPS of a loss of $0.21 to $0.20 and target debt paydown of $25 million in the quarter.

對於2025 財年第一季，我們預期銷售額為1.69 億美元至1.76 億美元，調整後EBITDA 為負2,900 萬美元至負2,700 萬美元，調整後淨虧損為3,900 萬美元至3,700 萬美元，調整後攤薄每股收益虧損0.21 美元至本季目標債務償還額為 0.20 美元，目標債務償還額為 2,500 萬美元。

After the first seven weeks of the year, we are trending broadly in line with our expectations, and slightly above when accounting for hurricane-related demand incurred during this time period. We are seeing strong results in our PRO and ecommerce channels with other channels showing sequential improvement from the fourth quarter.

今年前七週之後，我們的趨勢大致符合我們的預期，並且在考慮到這段期間發生的颶風相關需求時略高於我們的預期。我們看到我們的 PRO 和電子商務管道取得了強勁的業績，其他管道也從第四季度開始連續改善。

Although we are very early in the fiscal year, these are encouraging signs as we continue to position ourselves to win pool season in 2025, and to generate long-term sustainable growth. I would like to remind everyone that, the first two quarters of our fiscal year are historically smaller in volume, and thus have an inherently higher degree of operating leverage embedded within them.

儘管我們還處於本財年的初期，但這些都是令人鼓舞的跡象，因為我們將繼續為贏得 2025 年泳池賽季做好準備，並實現長期可持續增長。我想提醒大家的是，我們財政年度的前兩個季度的交易量歷來較小，因此本質上具有較高程度的營運槓桿。

From a balance sheet perspective, we continue to improve our cash position in order to enhance liquidity and paydown debt. With $109 million in cash to start the fiscal year, we believe we have the ability to paydown debt and execute on our strategic priorities. We expect the magnitude and timing of future debt reduction, to be determined by general business trends, the need to build inventory in the first half of the year, and the amount of excess cash generated in the back half of the year, during pool season.

從資產負債表的角度來看，我們持續改善現金狀況，以增強流動性和償還債務。以 1.09 億美元的現金開始本財年，我們相信我們有能力償還債務並執行我們的戰略重點。我們預期未來債務削減的幅度和時機將取決於整體業務趨勢、上半年建立庫存的需要以及下半年池季期間產生的超額現金金額。

Moving to capital allocation, we plan to pay down debt by $25 million in the current quarter, with further guidance on paydown to be communicated during our February call. As a result, we expect to limit new store openings and M&A activity, to focus on our debt paydown priority.

談到資本配置，我們計劃在本季度償還 2500 萬美元的債務，並在 2 月的電話會議上傳達有關償還債務的進一步指導。因此，我們預計將限制新店開業和併購活動，以專注於我們的債務償還優先事項。

I will now turn it back over to Jason, for closing remarks.

現在我將把它轉回傑森，讓他發表結束語。

As we move forward in fiscal 2025, I believe there is strong value creation potential for Leslie's and all of our stakeholders. We believe we have what every successful retailer needs, to win with the customer. We believe Leslie's is in an advantaged industry, has key competitive advantages, differentiated omnichannel solutions, and a great team to serve our DIY and PRO customers.

隨著 2025 財年的推進，我相信 Leslie 和我們所有的利害關係人都有強大的價值創造潛力。我們相信我們擁有每個成功零售商所需的東西來贏得客戶。我們相信 Leslie's 處於優勢產業，擁有關鍵的競爭優勢、差異化的全通路解決方案以及為 DIY 和 PRO 客戶提供服務的優秀團隊。

Our three strategic themes of customer centricity, convenience and asset utilization will drive our key initiatives, and be fueled by the pride of our employees. We believe that their pursuit of excellence in execution, provides a value proposition that our customers are going to embrace. As we let the Leslie's pride shine through, we are going to ensure we have a clear focus on the fundamentals.

我們的三大策略主題：以客戶為中心、便利性和資產利用將推動我們的關鍵舉措，並受到員工自豪感的推動。我們相信，他們對卓越執行力的追求提供了我們的客戶將會接受的價值主張。當我們讓萊斯利的驕傲閃耀時，我們將確保我們明確地專注於基本面。

Over the coming weeks and months. I look forward to continuing my conversations with our stakeholders to frame our opportunity set, solicit their valuable feedback and then go and win with our team.

在接下來的幾週和幾個月裡。我期待著繼續與我們的利害關係人進行對話，以建立我們的機會集，徵求他們的寶貴回饋，然後與我們的團隊一起贏得勝利。

I will now turn it back over to the operator for Q&A. Please proceed.

我現在將其轉回給接線員進行問答。請繼續。

(Operator Instructions) Kate McShane with Goldman Sachs.

（操作員說明）Kate McShane 與高盛。

Hi, good afternoon. Thanks for taking our question. Jason, I wanted to ask a little bit more about the strategic focus for Leslie's. Just which one of those strategic themes do you think will make the largest impact in the near to medium term?

嗨，下午好。感謝您提出我們的問題。傑森，我想多問一些關於萊斯利的戰略重點的問題。您認為這些策略主題中的哪一個將在中短期內產生最大影響？

Thanks Kate. Thanks for the question. Firstly, when I look at the strategic themes, for me what I love about those themes, is that they are strategic themes that are developed by the team members, and it's a result of listening and learning through the early days that I've been CEO here at Leslie's, and helps shape our go forward plan.

謝謝凱特。謝謝你的提問。首先，當我看到策略主題時，對我來說，我喜歡這些主題的原因是它們是由團隊成員開發的策略主題，這是我早期傾聽和學習的結果。我們的前進計劃。

The other piece is it focuses on the comp sales side of the growth. And also making sure that we have focus on driving improved efficiency, to drive leverage through the P&L. So on your question specifically around impact, having that as a backdrop, asset utilization is the one area and the one theme that I think does the best job of that, because it helps us focus on optimization, but it also helps in regards to how we improve same-store sales.

另一件事是它專注於成長的比較銷售方面。同時確保我們專注於提高效率，透過損益表提高槓桿。因此，關於你的問題，特別是關於影響的問題，以此為背景，資產利用率是我認為做得最好的一個領域和一個主題，因為它幫助我們專注於優化，但它也有助於如何我們提高同店銷售額。

So early on and when looking at Leslie's, prior to starting and then often when I came in and spending time looking at the stores and DCs, I identified that - this is an area with the team that, we should have as a critical focus. So as I broke that out between physical assets, technology and data assets, and then obviously people and human capital, I think there's an opportunity here for Leslie's.

因此，在很早的時候，當我開始考察 Leslie's 之前，以及經常當我進來並花時間查看商店和 DC 時，我發現 - 這是我們團隊應該重點關注的一個領域。因此，當我在實體資產、技術和數據資產，以及顯然是人員和人力資本之間進行區分時，我認為萊斯利的這裡有一個機會。

Our proximity advantage -- sorry our proximity of assets really demonstrates that we are structurally advantaged at Leslie's. And with that with combination with our supply chain, and our DCs as well as our customer service centers and where our proximity of stores are, is one thing that we can really leverage.

我們的鄰近優勢——抱歉，我們的資產鄰近確實表明我們在萊斯利的結構上具有優勢。與我們的供應鏈、配送中心、客戶服務中心以及我們鄰近的商店結合，這是我們真正可以利用的一件事。

And I think that that's an area of focus that, I want to make sure we as a company have, to make sure that we're delivering on customer needs going forward. Another piece of the physical assets is inventory. I'm pleased with how the team has reduced inventory in '24.

我認為這是一個重點領域，我想確保我們作為一家公司擁有這一點，以確保我們能夠滿足客戶未來的需求。實體資產的另一部分是庫存。我對團隊在 24 年減少庫存的方式感到滿意。

That said, I think from visiting stores, et cetera in DCs, I think there's also an opportunity to drive some optimization. Optimization meaning further reduction over time, but also this concept of precision inventory, which I mentioned in my opening remarks. The precision inventory for us is about how do, we make sure we have the right product at the right place at the right time, and not every part of the country is equal in terms of our assortment that needs to be there.

也就是說，我認為透過參觀 DC 的商店等，我認為還有機會推動一些優化。優化意味著隨著時間的推移進一步減少，也意味著我在開場白中提到的精確庫存的概念。對我們來說，精確庫存是關於如何做到這一點，我們確保我們在正確的時間、正確的地點擁有正確的產品，而且並非全國每個地區的產品種類都是相同的。

On the tech side, we have a tool that's going to help us with that. We have an inventory management tool that, enables us to really bring precision there, and really drive the precision around the depth and the breadth of the inventory that we have. So in that combination, I think we have opportunities both in breadth, but then also depth.

在技​​術方面，我們有一個工具可以幫助我們實現這一點。我們有一個庫存管理工具，使我們能夠真正實現精確度，並真正提高我們庫存的深度和廣度的精確度。因此，在這種結合中，我認為我們既有廣度上的機會，也有深度上的機會。

And I want to make sure we have the right depth in things as I mentioned around never outs, the most important SKUs for our company. Another piece on the tech side for asset utilization, is one item around first party data. We have a lot of information regarding our customers, and how they a lot about their pool and how they operate.

我想確保我們在事情上有正確的深度，正如我在永不過時所提到的，這是我們公司最重要的 SKU。資產利用技術的另一部分是圍繞第一方資料的一項。我們有很多關於我們的客戶的信息，以及他們如何了解他們的池以及他們如何運作。

And what they're - and how their day-to-day operations of their pool are, and how we can best serve them. I think it's an opportunity for us to even get more personalized. And we have that personalized ability through our water test, where people come in and get their water tested, and we can provide that level of technology and trust for them. So I feel great about that. I got to see this first hand in California, and when I was standing there I saw a customer come in and the GM leaned over to me and said that, this lady comes in every week.

他們是什麼 - 以及他們的泳池的日常運作如何，以及我們如何最好地為他們服務。我認為這對我們來說是一個變得更加個性化的機會。我們透過水測試擁有個人化的能力，人們進來測試水，我們可以為他們提供這種程度的技術和信任。所以我對此感覺很好。我在加州親眼目睹了這一點，當我站在那裡時，我看到一位顧客進來，總經理向我傾身說道，這位女士每週都會來。

And I said really? Every week? Yes, she just wants to see what her score was. So she was excited when she got over an 80% on her score, and I asked her, I said so you come in every week? She goes yes, I just love the ladies here. So that showed me, a real key area around the other part of leveraging our assets, which is literally our human capital, and our people in the front line are great, and they have an opportunity to share their expertise and build confidence.

我說真的嗎？每個星期？是的，她只是想看看自己的成績是多少。所以當她的分數超過80%時她很興奮，我問她，我說那你每週都會來嗎？她說是的，我就是喜歡這裡的女士們。這向我展示了利用我們資產的另一部分的真正關鍵領域，這實際上是我們的人力資本，我們在第一線的員工都很棒，他們有機會分享他們的專業知識並建立信心。

So in a nutshell, I think it's asset utilization to answer your question. And I firmly believe it's the balance that - of really a clear focus here for comp sales growth, and then driving efficiency to drive leverage through the P&L. And then as Scott mentioned, continuously paydown the debt.

簡而言之，我認為用資產利用率來回答你的問題。我堅信，這是一種平衡——真正明確地關注公司銷售成長，然後透過損益表提高效率以提高槓桿率。然後正如斯科特所提到的，不斷償還債務。

Thank you. And I just wonder if I could follow-up with a second question. Just wondered if you could talk a little bit more, as to why you're seeing the relative strength in the PRO business versus the rest of the business, and what you think is driving that?

謝謝。我只是想知道我是否可以跟進第二個問題。只是想知道您是否可以多談談，為什麼您看到專業業務相對於其他業務的相對優勢，以及您認為是什麼推動了這一趨勢？

Yes, I'll take that one. Kate. Thanks for the question. A couple good things going on in the PRO business under Dave Caspers' leadership. He's really engaged the team to driving sales and so knowing what's important to the PRO, right. And so, we've done several flash sales that we've done in the past, and we've kind of reinvigorated those and have seen really good response.

是的，我會接受那個。凱特.謝謝你的提問。在 Dave Caspers 的領導下，PRO 業務正在發生一些好事。他確實讓團隊致力於推動銷售，因此知道什麼對專業人士來說是重要的，對吧。因此，我們已經進行了幾次閃購，就像我們過去所做的那樣，我們已經重振了這些活動，並看到了非常好的反響。

And so it's really more targeted kind of promotional activity around more kind of an event, or flash sale has played out well. We continue to add more PRO partners. So we have 4,400 PRO partners today. It's about 14% higher than last year. And so, those PRO partners spend in excess of $10,000 a year at Leslie's.

因此，這確實是一種更有針對性的促銷活動，圍繞著更多類型的活動，或者閃購效果很好。我們將繼續增加更多 PRO 合作夥伴。現在我們有 4,400 個 PRO 合作夥伴。比去年高出約14%。因此，這些 PRO 合作夥伴每年在 Leslie's 的花費超過 10,000 美元。

So another positive, and then just really dialing into pricing and all of the key SKUs. To understand, where the market is and where we need our pricing, to be the most competitive. And so that's paid big dividends, because as you probably know, the PROs are very price sensitive. They want to shop at Leslie's, but we have to be competitively priced. And so that's another area, where I think we're doing better and getting more refined data, and it's paying off with our PROs.

這是另一個積極因素，然後就是真正深入研究定價和所有關鍵 SKU。了解市場在哪裡以及我們需要定價的地方，以便最具競爭力。因此，這帶來了巨大的紅利，因為您可能知道，PRO 對價格非常敏感。他們想在 Leslie's 購物，但我們的價格必須具有競爭力。所以這是另一個領域，我認為我們做得更好，獲得了更精確的數據，並且我們的專業人士得到了回報。

Thank you.

謝謝。

Thank you. Our next question is from Simeon Gutman with Morgan Stanley. Please proceed with your question.

謝謝。我們的下一個問題來自摩根士丹利的西蒙·古特曼。請繼續你的問題。

Hi. Thank you so much for taking our question. I guess the first question is just on comps of negative 8.3 for the quarter. Just curious if you can break this out, between ticket and traffic was this driven and one more so over the other? Thank you.

你好。非常感謝您提出我們的問題。我想第一個問題只是關於本季負 8.3 的比較。只是好奇你是否能解決這個問題，在門票和交通之間是這樣驅動的，還是一個比另一個驅動的？謝謝。

It was driven more by traffic. So very similar to what we've seen in recent quarters. Traffic has been the main driver of our comps. And so as Jason talks about some of the initiatives, it's really laser focused on driving that top line, and really leveraging our competitive advantages in our stores, and in other channels. And so, that's one of our main focuses right now, to drive traffic.

它更多是由交通驅動的。與我們最近幾季看到的情況非常相似。流量一直是我們競爭的主要驅動力。因此，當傑森談到一些舉措時，它確實專注於推動營收，並真正利用我們在商店和其他管道的競爭優勢。因此，增加流量是我們目前的主要關注點之一。

Okay. Great. That's helpful. And I guess our follow-up is just on the unit growth. So current focus is to - focus on the current assets you have. And you talked about opening three stores for fiscal '25. Can you talk about how this maybe changes your long-term unit growth outlook of the 2% to 3%? Is that still something we can get to in the medium term? Thank you.

好的。偉大的。這很有幫助。我想我們的後續行動只是關注單位成長。因此，目前的重點是 - 專注於您現有的資產。您談到了在 25 財年開設三家商店。您能否談談這可能如何改變您 2% 至 3% 的長期單位成長前景？從中期來看，這仍然是我們可以實現的目標嗎？謝謝。

I think so. I think at some point our near term priority, is to paydown debt. And so, we generated a lot of cash last year and ended the year with about $108 million on the balance sheet. Puts us in a good position, to start executing that paydown on debt. And that will remain our key priority for the near term, from a capital allocation standpoint.

我想是的。我認為在某些時候我們的近期優先事項是償還債務。因此，我們去年產生了大量現金，年底資產負債表上的現金約為 1.08 億美元。使我們處於有利位置，可以開始償還債務。從資本配置的角度來看，這仍然是我們近期的首要任務。

As we think about future growth, whether it be a buy or build situation, there's still plenty of opportunities out there. And so, when we get to a point where we're comfortable with an adequate paydown of debt, we will start, engaging on new store builds in a bigger way and more M&A activity. But that being said, the other reason, is just we want to focus on the core, right? We want to really focus in on our initiatives, improve the core profitability and top line. And then after we get some traction with that, we'll be in a better position to reengage on growth.

當我們考慮未來的成長時，無論是購買還是建造情況，仍然存在大量機會。因此，當我們能夠滿意地償還足夠的債務時，我們將開始以更大的方式參與新店建設和更多的併購活動。但話雖這麼說，另一個原因是我們想專注於核心，對嗎？我們希望真正專注於我們的舉措，提高核心獲利能力和營收。然後，在我們獲得一些牽引力之後，我們將能夠更好地重新實現成長。

And just to build on that. I think the biggest piece of us from a focus standpoint on growth, and I'm glad you asked that question, is because it is a crystal clear focus for us in terms of baseline growth, and really it has to do with -- going deep with the customer. We believe that we have some really strong competitive advantages in the marketplace around proximity, obviously the quality of the product portfolio.

並以此為基礎。我認為，從關注成長的角度來看，我們最重要的一點是，我很高興你問了這個問題，因為就基線成長而言，這對我們來說是一個非常明確的關注點，而且它確實與－與客戶深入交流。我們相信，我們在市場上擁有一些非常強大的競爭優勢，尤其是產品組合的品質。

The expertise that we have in our stores, the water testing technology that we have in omnichannel approach that, we need to continue to work to bring more awareness to, and that can help us drive some traffic.

我們在商店中擁有的專業知識，我們在全通路方法中擁有的水質測試技術，我們需要繼續努力提高人們的認識，這可以幫助我們增加一些流量。

In addition to that, when we are driving that level of awareness, and people are visiting Leslie's is to then continue to bolster our loyalty program. We have a strong level of personalized data today that, gives us information about our customer. But I think we have the opportunity, to even go further with that. Both of those are going to allow us, to build plans to drive long-term sustainable growth at Leslie's.

除此之外，當我們提高意識水平並且人們造訪 Leslie’s 時，我們將繼續加強我們的忠誠度計劃。今天，我們擁有強大的個人化數據，可以為我們提供有關客戶的資訊。但我認為我們有機會在這方面走得更遠。這兩點都將使我們能夠制定計劃，推動萊斯利的長期永續成長。

Great, thank you.

太好了，謝謝。

Thank you. Our next question is from Ryan Merkel with William Blair. Please proceed with your question.

謝謝。我們的下一個問題來自瑞安·默克爾和威廉·布萊爾。請繼續你的問題。

Great. Thanks for taking the questions. I wanted to start off on gross margins, which have been sort of a disappointment and were again this quarter. So what are some of the strategies, you're thinking about to improve gross margins? And are you thinking, you need to have more cost takeout from here, or is your focus on more, improving the top line?

偉大的。感謝您提出問題。我想從毛利率開始，毛利率有點​​令人失望，本季再次出現這種情況。那麼，您正在考慮採取哪些策略來提高毛利率？您是否在想，您需要從這裡獲得更多成本，還是您的重點是提高收入？

Yes, good question, Ryan. I think -- well, first off, I think it's more top line focus. Okay. And so this past quarter we had, a little bit higher inventory and scrap entries. Some of that was, kind of weighted towards the back half of the year. And so, we'll always have that, probably a little bit of room to reduce that. But by and large, I mean, I think we control our DC expenses pretty well, and it's all about driving that top line so we can get leverage, right.

是的，好問題，瑞安。我認為——首先，我認為這更關注營收。好的。因此，上個季度我們的庫存和報廢條目有所增加。其中一些是在今年下半年進行的。所以，我們永遠都會有這樣的情況，可能還有一點減少的空間。但總的來說，我的意思是，我認為我們很好地控制了我們的 DC 費用，這一切都是為了推動營收，這樣我們就可以獲得槓桿作用，對吧。

So our, deleverage on occupancy alone was, almost 80 basis points last quarter, we had more deleverage on DC costs as well. And so as we look at it, we'll continue to refine kind of the DC operations and inventory adjustments and so forth. So some marginal improvements there to be had.

因此，上季度我們僅對入住率的去槓桿化就接近 80 個基點，我們對 DC 成本的去槓桿化也更多。因此，當我們審視它時，我們將繼續完善 DC 營運和庫存調整等。因此，還需要進行一些邊際改進。

But it's really about driving top line so we can leverage those fixed costs. And so, it really comes back to, what Jason's talking about and kind of those key initiatives that we see that we can start to engage on, to drive the top line in PRO and other categories.

但這其實是為了提高收入，這樣我們就可以利用這些固定成本。因此，這真的回到了 Jason 所談論的內容以及我們認為可以開始參與的關鍵舉措，以推動 PRO 和其他類別的營收成長。

Okay. That's helpful. And then a question on inventory. Do you feel like you're right sized here, or do you have to cut more in? I think you mentioned, the localized assortment and the precision inventory. So just how do we, balance all those things?

好的。這很有幫助。然後是關於庫存的問題。您覺得這裡的尺寸合適嗎，還是需要減少更多尺寸？我想你提到了本地化的品種和精確的庫存。那麼我們該如何平衡所有這些事情呢？

Yes, good question. We, as we look at it, there's still some room to take out inventory. Not nearly as much as we saw this past year. But as Jason has walked a lot of stores and distribution centers and commercial centers, there's a lot of inventory out there that has kind of stuck, right.

是的，好問題。我們認為，仍有一些去庫存的空間。幾乎沒有我們去年看到的那麼多。但當傑森走過很多商店、配送中心和商業中心時，那裡有很多庫存被困住了，對吧。

And so, from an allocation standpoint, there's a pretty nice opportunity to consolidate some of that inventory, get it back to our warehouses. And really just tighten up our allocation strategy, especially on the high ticket items. So that initiative will help us free up dollars, to put more dollars into those specific items, those never outs that are so important, to our customers and our PROs.

因此，從分配的角度來看，這是一個很好的機會來整合一些庫存，將其送回我們的倉庫。實際上只是收緊我們的分配策略，特別是在高價商品上。因此，這項措施將幫助我們騰出資金，將更多資金投入到那些對我們的客戶和專業人士來說非常重要的特定項目上，這些項目永遠不會被淘汰。

I think the big word, the big word I used in discussing this with the team, and as we're proceeding is this word like, as you mentioned, precision. And it is about making we have the benefit of having stores, so close to all the pools across America that, we can build an efficient assortment, because we can be very tailored to the pools in those neighborhoods.

我認為最重要的詞，我在與團隊討論這個問題時使用的最重要的詞，正如我們所討論的，這個詞就像你提到的「精確」。這是為了讓我們受益於擁有商店，離美國所有的泳池都很近，我們可以建立一個高效的品種，因為我們可以非常適合這些社區的泳池。

And I think that that's a significant opportunity for us. And then at the same time, we leverage some of the technology we've had, and we have and further utilize it even better to then really manage the breadth and the depth, of what we're talking about from an inventory standpoint. So we can do the level of utilization, and almost any efficiency that we need for inventory, which is what Scott mentioned.

我認為這對我們來說是一個重要的機會。同時，我們利用我們已經擁有的一些技術，我們已經並進一步更好地利用它，然後從庫存的角度真正管理我們所討論的內容的廣度和深度。因此，我們可以確定利用率水準以及庫存所需的幾乎任何效率，這就是史考特提到的。

All right, thanks. I'll pass it on.

好的，謝謝。我會把它傳遞下去。

Thank you.

謝謝。

Thank you. Our next question is from Jonathan Matuszewski with Jefferies. Please proceed with your question.

謝謝。我們的下一個問題來自 Jefferies 的 Jonathan Matuszewski。請繼續你的問題。

Great. Good afternoon. Hi, Jason. Hi, Scott. Thanks for taking my questions. The first one was just on 2025, without formal guidance for the year. Maybe you could just share some high level qualitative views in terms of some of the underlying trends that you expect.

偉大的。午安.嗨，傑森。嗨，斯科特。感謝您回答我的問題。第一個是 2025 年，這一年沒有正式的指導。也許您可以就您預期的一些潛在趨勢分享一些高水準的定性觀點。

Maybe just some, any nuances in terms of how you're thinking about chemical demand versus equipment or AOV versus traffic. I know this past year, it was a big theme between discretionary versus non-discretionary. So any high level views, would be helpful? Thanks.

也許只是一些，在您如何考慮化學品需求與設備或 AOV 與流量方面的任何細微差別。我知道去年，這是自由裁量權與非自由裁量權之間的一個大主題。那麼任何高層觀點都會有幫助嗎？謝謝。

Yes, sure. Yes. So a lot there. I think for us from an equipment standpoint still down 15% or so. We are seeing some bright spots in that category. And some of the promotions that we've ran targeting equipment, free installs and things like that had resonated quite well. And so, I think there's some learnings that we've taken, from the last quarter that we can further deploy, this year to try to boost that business.

是的，當然。是的。那裡有很多。我認為從設備的角度來看，我們仍然下降了 15% 左右。我們在該類別中看到了一些亮點。我們針對設備、免費安裝等進行的一些促銷活動引起了很好的迴響。因此，我認為我們從上個季度吸取了一些教訓，今年可以進一步部署，以嘗試促進該業務。

But at the end of the day, a lot of this is going to come down to, consumer behavior and just how willing they are to spend, those dollars on the more discretionary items. That being said, we have made some improvements in our hot tub business. So we were down 5% for the quarter, down 9% for the year, and that is really a function of the team, really engaging more with the leads that we generate.

但歸根結底，這很大程度上取決於消費者的行為以及他們花在更多可自由支配物品上的意願。話雖這麼說，我們的熱水浴缸業務已經取得了一些進步。因此，我們本季下降了 5%，全年下降了 9%，這實際上是團隊的一項功能，真正與我們產生的潛在客戶進行更多互動。

And having better tools to execute against those leads and then being more creative. Having more hot tub events at Costco and other areas, as really paid big dividends for us. And so part of it is on us, just to really spur that demand with targeted events and promos, and part of it is external. But the way that we think about it is how can, we improve what we do to make sure that our pricing right -- is right.

並擁有更好的工具來執行這些線索，然後變得更有創意。在 Costco 和其他地區舉辦更多的熱水浴缸活動，確實為我們帶來了巨大的紅利。因此，一部分責任在我們身上，只是為了透過有針對性的活動和促銷來真正刺激這種需求，一部分是外部的。但我們思考的方式是如何改善我們的工作，以確保我們的定價是正確的。

Make sure the awareness is there, make sure that marketing is targeted to draw those customers in, and then just leverage our competitive advantages. We have so many advantages, we think there's still more to do there to take full advantage.

確保存在意識，確保行銷有針對性地吸引這些客戶，然後充分利用我們的競爭優勢。我們擁有如此多的優勢，我們認為還需要做更多的工作才能充分利用這些優勢。

That's really helpful. Thank you. And then just my follow-up question was on e-commerce. I think it's annualizing around, or in excess of 20% of total sales. So just wanted to understand the opportunity there. I think historically Leslie's has been a large chunk of Amazon's pool and spa care business. So where does that business stand today, and is there incremental growth there? Thanks.

這真的很有幫助。謝謝。我的後續問題是關於電子商務的。我認為年化銷售額約佔或超過總銷售額的 20%。所以只是想了解那裡的機會。我認為從歷史上看，萊斯利一直是亞馬遜泳池和水療護理業務的很大一部分。那麼，該業務如今處於什麼位置，是否有增量成長？謝謝。

Yeah, so it's kind of two sides of the business really. Our marketplace business and somewhat our in the swim business is, much more kind of price sensitive. And especially Amazon to get that buy box, you got to have your pricing sharp. And so that's a piece of it that, we continue to get better with.

是的，所以這確實是業務的兩個方面。我們的市場業務以及游泳業務對價格更加敏感。尤其是亞馬遜，要獲得黃金購物車，你必須提高定價。這就是我們不斷改進的一部分。

And the other part is just making sure the availability is there and that prime. We're hitting all the targets to make sure that we're on prime. So it's really just making sure, we have the right products there and we're competitively priced, and we make adjustments almost on a daily basis.

另一部分只是確保可用性並且處於最佳狀態。我們正在實現所有目標，以確保我們處於最佳狀態。因此，這實際上只是確保我們擁有合適的產品，並且我們的價格具有競爭力，並且我們幾乎每天都會進行調整。

For the Leslie proprietary site, a little bit different story. I mean, Leslie's proprietary site was actually positive in the quarter, and certainly there's some synergies there, and tie-ins to our store with that site.We can offer promos on equipment, offer free installs on that site, and it gives us a big advantage. And so there's some threads there that we're going to continue, to work on that can leverage that site probably more than the other two.

對於萊斯利專有​​網站，情況略有不同。我的意思是，萊斯利的專有網站在本季度實際上是積極的，當然那裡有一些協同效應，並且與我們的商店與該網站捆綁在一起。提供免費安裝，這給了我們一個大優勢。因此，我們將繼續進行一些工作，這些工作可以比其他兩個網站更多地利用該網站。

And just to build on that. What you're sensing here is that the opportunity for us, is really about taking a omnichannel approach going forward as well, and sort of looking at the digital side, which is not only the e-commerce site, but is also the effectiveness of our mobile app. How do we connect both the digital, the digital way of doing business with our brick and mortar, and finding the best ways to serve our customers, by making sure that we meet them where they are.

並以此為基礎。您在這裡感受到的是，我們的機會實際上是採取全通路方法向前發展，並著眼於數位方面，這不僅是電子商務網站，而且還包括電子商務網站的有效性。 。我們如何將數位化、數位化的經營方式與我們的實體連結起來，並透過確保我們滿足客戶的需求，找到服務客戶的最佳方式。

And that's one of the pieces that we're very focused on, is how do we leverage some of the successes that we've had around e-commerce, as Scott just mentioned on some of those, but do so in an integrated way to best serve the customer's needs. And it's really about us, spending a lot of time going deep on each of the customer journeys candidly for growth, DIY and for PRO and meeting them and providing them with the solutions that, they want going forward.

這是我們非常關注的問題之一，就是我們如何利用我們在電子商務方面取得的一些成功，正如斯科特剛剛提到的，但要以綜合的方式做到這一點最好地滿足客戶的需求。這實際上是關於我們的，花大量時間坦誠地深入每個客戶的旅程，以實現成長、DIY 和 PRO，並與他們會面，並為他們提供他們想要繼續發展的解決方案。

Thanks for that. Best of luck.

謝謝你。祝你好運。

Thank you.

謝謝。

Thank you. Our next question is from Steven Forbes with Guggenheim Securities. Please proceed with your question.

謝謝。我們的下一個問題來自古根漢證券公司的史蒂文·福布斯。請繼續你的問題。

Good evening. This is Rene Marin for Steve Forbes. Jason, Scott can you just expand on the $5 million contractual gross margin headwind, I guess was it volume related?And then as you think about your sourcing agreements, across all product categories, are there any other risks we should be aware of, as we reframe the out your gross margin profile?

晚安.我是史蒂夫·福布斯的雷內·馬林。傑森，斯科特，你能談談 500 萬美元的合約毛利率逆風嗎？那麼，當您考慮所有產品類別的採購協議時，在我們重新制定您的毛利率概況時，我們是否應該注意任何其他風險？

Yes. First off, we don't really see any additional risk. So as far as kind of the vendor contract language, what happened there is late in the year, we renegotiated one of our supplier contracts. And what it involved was taking on some responsibility for warranties in exchange for higher volume based rebate.

是的。首先，我們確實沒有看到任何額外的風險。就供應商合約語言而言，今年年底發生的事情是，我們重新談判了一份供應商合約。它涉及的是承擔一些保固責任，以換取更高的基於數量的回扣。

And so in doing that, we had a fixed rebate that we had over the years that was actually taken out of that contract as well. And so it was kind of a total recast of that agreement. What we saw was that the warranty costs were escalating, and much higher than what we thought they would be.

因此，在這樣做的過程中，我們多年來獲得了固定回扣，這實際上也從該合約中扣除。所以這是對該協議的徹底改寫。我們看到的是保固成本不斷上升，並且遠高於我們的預期。

And so, we quickly renegotiated with that vendor, and talk through a scenario that could work for both of us, and ultimately came up to an agreement that no longer had us liable for those warranties, as of the first day of this fiscal year.

因此，我們很快就與該供應商重新談判，並討論了一個對我們雙方都適用的方案，並最終達成了一項協議，從本財年的第一天起，我們不再對這些保固承擔責任。

Okay. And so, I think it was an anomaly where we saw those escalating warranty costs. We reacted with the vendor pretty quickly, got a new contract in place, and so that won't be an issue going forward.

好的。因此，我認為我們看到保固成本不斷上升是一種反常現象。我們很快就與供應商做出了反應，簽訂了新合同，因此這不會成為未來的問題。

Got it. And then as a follow-up, can you breakdown or provide any additional color on the 1Q gross margin pressures, as implied by the guidance into various factors?

知道了。作為後續行動，您能否對第一季度毛利率壓力進行細分或提供任何額外的信息，正如對各種因素的指導所暗示的那樣？

Yes, sure. First off, based on the old contract with that supplier I just talked about, we did have some fixed rebates that hit in the first quarter and that will cause about 75 basis points of pressure there. Without that, our kind of our product margin will actually be slightly favorable, which is a function of some lower cost. We also, we'll see a little bit higher cost in some DC cost and some inventory adjustments.

是的，當然。首先，根據我剛才談到的與供應商的舊合同，我們確實有一些固定回扣，這些回扣會在第一季度出現，這將導致大約 75 個基點的壓力。如果沒有這一點，我們的產品利潤率實際上會稍微有利，這是成本較低的結果。我們還將看到一些 DC 成本和一些庫存調整的成本稍高。

And that's really a function of doing, things like cycle counts on a more regular basis instead of, kind of waiting till a physical inventory. And we've done that in the past, but, based on some of the adjustments we saw in fourth quarter, tells us that we need to do more cycle counts on a regular basis and kind of spread out, the cost of those inventory adjustments and keep track of it. And other than that, the main drag is occupancy, so occupancy will be about 100 basis points of drag in the quarter.

這確實是一個功能，例如更定期地進行週期盤點，而不是等待實際庫存。我們過去已經這樣做過，但是，根據我們在第四季度看到的一些調整，我們需要定期進行更多的週期盤點，並進行分散化，這些庫存調整的成本並追蹤它。除此之外，主要拖累因素是入住率，因此本季入住率將受到約 100 個基點的拖累。

Got it. Thank you.

知道了。謝謝。

Thank you. Our next question is from David Bellinger with Mizuho Securities. Please proceed with your question.

謝謝。我們的下一個問題來自瑞穗證券 (Mizuho Securities) 的 David Bellinger。請繼續你的問題。

Hi guys, thanks for the time here. Appreciate all the prepared remarks from Jason. Our question just on the - some of the internal initiatives you guys laid out, and maybe some of the retail fundamentals, maybe not where they should be at this point.

大家好，感謝您抽空來到這裡。感謝 Jason 準備好的所有發言。我們的問題只是關於你們提出的一些內部舉措，也許還有一些零售基本面，也許目前還沒有達到應有的水準。

Could you talk about any potential reinvestment that's needed? I know you talked about building awareness. Is there a certain level of dollars that have to go back in to get awareness where it should be, and get Leslie's back to being top of the mind for the consumer? And then anything about wages too, should we expect some kind of increase in wages to get that, asset leverage out of the store base that you're talking about?

您能談談需要的任何潛在的再投資嗎？我知道你談到了建立意識。是否需要投入一定程度的資金才能獲得應有的認知度，並讓萊斯利重新成為消費者心目中的首選？然後還有關於工資的事情，我們是否應該期望工資有所增加，以實現您所說的商店基地的資產槓桿？

Thanks for the question. I think, firstly, we're at the early stages of the development as the team is going through, as I mentioned, the collaboratively around the focus of the clear priorities around those three initiatives, and then they're building the plan around the specifics around those initiatives. And I'll be able to discuss that more from quarter-to-quarter as we go throughout the year and I'll make sure to do that.

謝謝你的提問。我認為，首先，我們正處於開發的早期階段，正如我所提到的，團隊正在圍繞這三項舉措的明確優先事項進行協作，然後他們圍繞著圍繞這些舉措的具體細節。當我們全年進行時，我將能夠逐季度更多地討論這個問題，我將確保這樣做。

Maybe to answer the second part of your question regarding maybe just investments in the spirit of delivering and driving traffic. For me, it's not determined yet in terms of additional funding that's required. I sort of look at two things when thinking about driving critical traffic for Leslie's going forward.

也許是為了回答你問題的第二部分，也許只是以提供和推動流量的精神進行投資。對我來說，所需的額外資金尚未確定。在考慮為 Leslie 的未來推動關鍵流量時，我會考慮兩件事。

The first is, is I want to make sure that we look at, I guess maybe the art and the science of that being an answer. The art being, what's the key messaging and the communication that we need to do to our customers, so that it persuades them to obviously come to Leslie's and drive traffic.

首先，我想確保我們看到，我想這可能是一個答案的藝術和科學。藝術在於，我們需要向客戶傳達什麼關鍵訊息和溝通，以便說服他們顯然來到萊斯利店並增加客流量。

So I think the foundation of the competitive advantages we have around obviously being the proximity around being in their local neighborhood to our, sorry to our - the water testing capability we have, the expertise we have in stores. These are all things that we can then communicate to our customers, and make sure we do so.

因此，我認為我們的競爭優勢的基礎顯然是靠近我們的當地社區，對不起我們的水測試能力，我們在商店中擁有的專業知識。這些都是我們可以與客戶溝通的內容，並確保我們這樣做。

The science part of this and that would be the art. The science to me is, I've spent a lot of time in my career as early as maybe 2006 on marketing mix modeling. And when looking at marketing mix modeling, it doesn't necessarily build awareness. You need to just add marketing spending. You can reallocate your current marketing spending to areas that, drive efficiency and drive the best performance based off of good modeling.

這個和那個的科學部分將是藝術。對我來說，科學是，早在 2006 年，我就在職業生涯中花了大量時間在行銷組合建模上。當考慮行銷組合模型時，它並不一定能建立意識。您只需添加行銷支出即可。您可以將目前的行銷支出重新分配到能夠提高效率並基於良好建模實現最佳績效的領域。

And leveraging data and analytics to then see what kind of best return we can get from the investments we make and choose the mediums appropriately. So I plan on doing both with the team is defining the best message, and obviously the best in supporting our initiatives around that. But then doing so the right way, with a prudent approach on how do I leverage the consistent -- the spend we have today, and do it as most efficient as possible.

利用數據和分析來了解我們可以從我們所做的投資中獲得什麼樣的最佳回報，並適當地選擇媒介。因此，我計劃與團隊一起定義最好的信息，並且顯然是支持我們圍繞這一點的舉措的最佳信息。但是，然後以正確的方式這樣做，以謹慎的方式對待我如何利用我們今天的一致支出，並盡可能最有效地做到這一點。

Great, thanks for that. And then -- my second question. Looks like you're essentially pausing new store growth, likely pausing some of the tuck-in M&A activity. We think about 2025, the vast majority of free cash flow going to debt paydowns. Is there any way to frame up, just how much that could be in addition to the $25 million you mentioned in Q1?

太好了，謝謝你。然後——我的第二個問題。看起來你基本上暫停了新店的成長，很可能暫停了一些隱藏的併購活動。我們認為到 2025 年，絕大多數自由現金流將用於償還債務。除了您在第一季提到的 2500 萬美元之外，還有什麼辦法可以確定嗎？

Yes, good question. It's hard to frame up the exact dollar amount for the remainder of the year. But I think the point here and the message here, is that we are committed to that priority. It will remain our number one priority of the paydown debt, for the foreseeable future. Store growth and M&A is important to us and long-term it plays a big role in our growth.

是的，好問題。很難確定今年剩餘時間的確切金額。但我認為這裡的要點和資訊是我們致力於這項優先事項。在可預見的未來，它仍將是我們償還債務的第一要務。商店成長和併購對我們很重要，從長遠來看，它對我們的成長發揮著重要作用。

And so in the meantime, we'll continue to build the pipeline and to fine tune where those next stores will be. We already have a pretty robust pipeline of M&A targets, and we'll continue to build on that. And so, when we're ready to reengage, we can shorten the time window that that's going to take.

因此，與此同時，我們將繼續建立渠道並微調下一批商店的位置。我們已經擁有相當強大的併購目標管道，我們將在此基礎上繼續發展。因此，當我們準備好重新參與時，我們可以縮短所需的時間窗口。

Appreciate all the details. Thank you.

欣賞所有細節。謝謝。

Thank you. Our next question is from Justin Kleber with Baird. Please proceed with your question.

謝謝。我們的下一個問題來自 Justin Kleber 和 Baird。請繼續你的問題。

Hi, good afternoon guys. Thanks for taking the questions. First one was just on wanted to ask about chemical AUR trends. We noticed you've been highlighting a new low price on shock. Curious if that's you being proactive and passing through lower product costs, or are you following others in the industry that are taking price lower?

嗨，大家下午好。感謝您提出問題。第一個只是想詢問化學 AUR 趨勢。我們注意到您一直在強調衝擊的新低價。好奇這是否是您積極主動並透過降低產品成本，或者您是否跟隨行業中其他人降低價格？

And then just how do we think about any sales, or margin impact from this change, compared to some of the broader chemical price reductions you took in June of '23?

那麼，與 2023 年 6 月採取的一些更廣泛的化學品降價措施相比，我們如何看待這項變更對銷售或利潤率的影響？

Yes, so first off, it's not, near the magnitude and really not comparable to June 2023. What I would say is we're being kind of targeted on pricing, and it's particularly in the PRO area. I mentioned earlier that, we need to be more competitive on PRO pricing, and we're doing that, and it's showing some good top line results.

是的，所以首先，它的震級並不接近，而且與 2023 年 6 月確實無法比較。我想說的是，我們在定價上有一定的針對性，尤其是在 PRO 領域。我之前提到過，我們需要在 PRO 定價上更具競爭力，我們正在這樣做，並且它顯示了一些良好的營收結果。

And so that's, that's where we're kind of placing our chips right now is in the PRO area.In the kind of the residential customer pricing is pretty stable. And so, we haven't really had to move too much at the retail customer level. In order to fund kind of lower pricing on PRO, we have had some better pricing come through on our key chemicals. And so that is basically covering most, if not all of that reduced price.

所以，這就是我們現在將晶片放置在 PRO 區域的地方。因此，我們實際上不必在零售客戶層面採取太多行動。為了資助 PRO 的較低定價，我們對我們的關鍵化學品進行了一些更好的定價。因此，這基本上涵蓋了大部分（如果不是全部）降價。

Got it. Great. Thanks for that color, Scott. And just a follow-up to David's question regarding investments. Can you just talk conceptually about the SG&A line? Certain states that you operate in continue to raise minimum wages. So I guess the question is, can you continue to reduce SG&A dollars on a year-over-year basis, like you did this past year, while simultaneously making these investments that are needed to turn the traffic and the top line?

知道了。偉大的。謝謝你的顏色，斯科特。這只是大衛關於投資問題的後續。能從概念上談談 SG&A 線嗎？您所在的某些州繼續提高最低工資。所以我想問題是，你能否像去年一樣繼續逐年減少銷售、行政管理費用，同時進行這些必要的投資來扭轉交通和營收？

Yes, good question. I think it's more difficult for sure, because we have made some pretty significant reductions in SG&A, and we want to be thoughtful about that, right. We want to make sure that we have the structure to support the business, and the growth of the business.

是的，好問題。我認為這肯定更困難，因為我們已經大幅削減了銷售管理費用，我們希望對此深思熟慮，對吧。我們希望確保我們擁有支援業務和業務成長的結構。

And so really our mentality on SG&A is that we will continue to invest in that area, but we want to follow the growth, right. And so, we want to start to see the growth first and then we'll follow with the SG&A growth behind that. I think one thing that to keep in mind, as we move forward here, the incentive compensation has been, quite low, in the last two years.

因此，我們對 SG&A 的態度實際上是，我們將繼續在該領域進行投資，但我們希望跟隨成長，對吧。因此，我們希望首先看到成長，然後我們將專注於其背後的 SG&A 成長。我認為要記住一件事，當我們在這裡前進時，過去兩年的激勵薪酬相當低。

And so, I think one thing to think about, when things do pick up a little bit, that incentive compensation will move higher as that happens. But all the other areas in SG&A, I think we have a really good handle on and we have good control over, and we're very mindful on spending additional G&A, and we'll do that to take care of our teams, and to make sure we're funding the growth.

因此，我認為需要考慮的一件事是，當情況確實有所改善時，激勵性薪酬將會隨之提高。但在 SG&A 的所有其他領域，我認為我們有很好的處理能力，我們有很好的控制力，我們非常注意花費額外的 G&A，我們會這樣做來照顧我們的團隊，並確保我們為成長提供資金。

Appreciate the color. Thanks and best of luck.

欣賞顏色。謝謝，祝你好運。

Thank you. That's all the time we have for Q&A today. Thank you for joining the call. You may now disconnect.

謝謝。這就是我們今天問答的全部時間。感謝您加入通話。您現在可以斷開連線。