Rocky Brands Inc (RCKY) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Rocky Brands third quarter 2023 earnings conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded.

下午好，女士們先生們，感謝你們的支持。歡迎參加 Rocky Brands 2023 年第三季財報電話會議。 （操作員說明）我想提醒大家，本次電話會議正在錄音。

I will now turn the conference over to Brendon Frey of ICR.

我現在將會議交給 ICR 的 Brendon Frey。

Thank you, and thanks to everyone joining us today. Before we begin, please note that today's session, including the Q&A period, may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.

謝謝你們，也謝謝今天加入我們的所有人。在我們開始之前，請注意，今天的會議，包括問答環節，可能包含 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。

Such statements are based on information and assumptions available at this time and are subject to changes, risks, and uncertainties, which may cause actual results to differ materially. We assume no obligation to update such statements.

此類陳述基於目前可用的資訊和假設，可能會發生變化、風險和不確定性，這可能導致實際結果有重大差異。我們不承擔更新此類聲明的義務。

For a complete discussion of the risks and uncertainties, please refer to today's press release and our reports filed with the Securities and Exchange Commission, including our 10-K for the year ended December 31, 2022.

有關風險和不確定性的完整討論，請參閱今天的新聞稿和我們向美國證券交易委員會提交的報告，包括截至 2022 年 12 月 31 日的年度 10-K。

I will now turn the conference over to Jason Brooks, Chief Executive Officer of Rocky Brands. Jason?

我現在將會議交給 Rocky Brands 執行長 Jason Brooks。傑森？

Thank you, Brendon. With me on today's call is Tom Robertson. After Tom's and my prepared remarks, we will be happy to take questions.

謝謝你，布倫登。和我一起參加今天電話會議的是湯姆羅伯森。在湯姆和我準備好的發言之後，我們將很樂意回答問題。

We are pleased with our third quarter results which were highlighted by a meaningful topline improvement compared with the second quarter and a significant increase in profitability on both a sequential and year-over-year basis.

我們對第三季的業績感到滿意，與第二季相比，營收顯著改善，獲利能力環比和年比顯著提高。

As we outlined on our Q2 call, we anticipated that our performance would start to revamp beginning in the second half, thanks to the sustained consumer demand we've seen all year for our product offering.

正如我們在第二季電話會議中所概述的那樣，我們預計我們的業績將從下半年開始改善，這要歸功於我們全年看到的消費者對我們產品的持續需求。

It's important to remember that while 2023 got off to a difficult start, much of the topline pressure was experienced was related more to macro-economic headwinds and industry dynamics, notably excess channel inventory, along with tough comparisons versus the strength and desirability of our brands.

重要的是要記住，雖然 2023 年開局艱難，但所經歷的大部分收入壓力更多地與宏觀經濟逆風和行業動態有關，特別是渠道庫存過剩，以及與我們品牌的實力和需求的嚴格比較。

In fact, our sell-through has held up relatively well despite persistent inflation that has impacted consumer discretionary spending. This performance, combined with early actions by retailers to better align overall inventory levels with the current demand environment, drove an acceleration in at-once orders for many of our key wholesale partners as the third quarter progressed.

事實上，儘管持續的通貨膨脹影響了消費者的可自由支配支出，但我們的銷售量仍保持相對較好的水準。這項業績，加上零售商為更好地調整整體庫存水準與當前需求環境而採取的早期行動，隨著第三季的進展，推動了我們許多主要批發合作夥伴的一次性訂單加速。

While third quarter sales did not reach our year-ago levels. The work we've done enhancing our distribution and fulfilment capabilities, along with lower expense levels, including reduced freight rates, allowed us to translate a 13% decrease in revenue into a 40% increase in operating income on an adjusted basis.

雖然第三季的銷售額沒有達到去年同期的水平。我們所做的工作增強了我們的分銷和履行能力，同時降低了費用水準（包括降低的運費），使我們能夠將收入減少 13% 轉化為調整後營業收入增加 40%。

Tom will cover the numbers in more detail shortly, but before that I would like to spend a few minutes reviewing the drivers of our recent topline performance.

湯姆很快就會更詳細地介紹這些數字，但在此之前，我想花幾分鐘回顧我們最近的營收表現的驅動因素。

Starting with work. Our four brands that make up this category: Georgia, Rocky, Muck, and XTRATUF, collectively delivered a sequential sales increase in the third quarter after selling in was severely impacted by high retail inventories in the first half of 2023.

從工作開始。我們構成該類別的四個品牌：Georgia、Rocky、Muck 和 XTRATUF 在受到 2023 年上半年高零售庫存的嚴重影響後，第三季的銷售額總體實現環比增長。

And on a year-over-year basis, the decline moderated significantly from what we experienced in the first and second quarters. Momentum for the Georgia built throughout the quarter was sales turning positive in the month of September as many key customer accounts began returning to more consistent ordering as their inventories further normalized.

與去年同期相比，下降幅度較第一季和第二季明顯放緩。 Georgia 整個季度的勢頭是 9 月的銷售轉正，因為隨著庫存進一步正常化，許多主要客戶客戶開始恢復更一致的訂購。

At the same time, lowing pricing on a certain Georgia styles, which is the result of recently realized cost savings that we passed along to customers, has spurred a notable pickup in demand.

同時，某些喬治亞風格的價格降低，這是我們最近實現的成本節約的結果，並將其轉嫁給客戶，刺激了需求的顯著回升。

Looking ahead, we are optimistic about the brand's growth prospects. Consumer response to the Georgia's fall 2023 line has been very positive, while wholesale bookings for spring have been much stronger than we've seen in quite some time.

展望未來，我們對品牌的成長前景持樂觀態度。消費者對 Georgia 2023 年秋季系列的反應非常積極，而春季的批發預訂量比我們在相當長一段時間內看到的要強勁得多。

Our Rocky work brand had a bit more challenge than the Georgia this quarter, with excess inventory levels continuing to impact replenishment orders. However, there were some bright spots, particularly with strength in our own e-commerce channel, along with solid success with new key independent retailers driven by new product introductions.

我們的 Rocky 工作品牌本季比 Georgia 面臨更多的挑戰，庫存水準過高繼續影響補貨訂單。然而，也有一些亮點，特別是我們自己的電子商務管道的實力，以及在新產品推出的推動下與新的主要獨立零售商取得的堅實成功。

Shifting to our rubber-based work products, both the Muck and the XTRATUF brands delivered solid results. While warm weather weighed on category demand and elevated inventories continue to impact sell-in, we saw steady improvement in Q3 compared to the first six months of this year.

轉向我們的橡膠基工作產品，Muck 和 XTRATUF 品牌都取得了紮實的成果。儘管溫暖的天氣影響了品類需求，庫存增加繼續影響銷售，但與今年前六個月相比，我們看到第三季的穩定改善。

Of note, much new fall collection featuring 12 new styles and supported by a new marketing campaign that targets the brand's core consumer is performing well at the gate, setting the stage for continued success in the months to come.

值得注意的是，許多新的秋季系列擁有 12 種新款式，並得到針對該品牌核心消費者的新行銷活動的支持，在門口表現良好，為未來幾個月的持續成功奠定了基礎。

With XTRATUF shipments were up year over year for the first time in 2023 as we delivered the brand's highly anticipated new fall product. Inventory levels for our key partners have begun to rightsize, resulting in a return to steady and growing wholesale demand.

由於我們交付了品牌備受期待的秋季新品，XTRATUF 的出貨量在 2023 年首次比去年同期成長。我們主要合作夥伴的庫存水準已開始調整規模，導致批發需求恢復穩定且持續成長。

As we finalize our spring '24 booking season, we are seeing continued success for the brand in both existing and new channels and expect this positive trajectory to continue into the fourth quarter and next year.

當我們結束 24 年春季預訂季時，我們看到品牌在現有管道和新管道中持續取得成功，並預計這種積極的軌跡將持續到第四季度和明年。

Turning now to our western business, while inventory levels with some key account partners were again a hurdle, we saw steady sales improvements in the third quarter over the first half of the year. With Durango, strength in our direct to consumer channel and increases in our special makeup business helped offset a portion of the lower sell-in compared to a year ago.

現在轉向我們的西方業務，雖然一些大客戶合作夥伴的庫存水準再次成為障礙，但我們看到第三季的銷售比上半年穩步改善。憑藉杜蘭戈，我們直接面向消費者的管道的實力和特殊化妝品業務的成長幫助抵消了部分與一年前相比較低的銷售量。

In terms of sell through, lower MAP pricing on certain key products, which is the result of the affirmation cost efficiencies that we were able to pass through to customers, helped drive demand and further reduce on-hand inventory levels for several retailers.

在銷售方面，某些關鍵產品的 MAP 定價較低，這是我們能夠向客戶傳達的成本效率確認的結果，有助於推動需求並進一步降低多家零售商的現有庫存水準。

We also saw notable improvement with our Rocky branded western product driven by new distribution with key western retailers. Along with these new partnerships, updates to long-standing Rocky western bestsellers drove new interested brand this quarter.

在西方主要零售商的新分銷推動下，我們的 Rocky 品牌西方產品也取得了顯著改善。除了這些新的合作關係之外，長期暢銷的西部片《洛基》的更新也推動了本季新的有興趣的品牌。

Looking ahead, the Durango and Rocky western teams are focused on launching of existing new collections in Q4 and ensuring that the right wholesale partners have the right product and meet the needs of our consumers.

展望未來，杜蘭戈和洛基西部團隊的重點是在第四季度推出現有的新系列，並確保合適的批發合作夥伴擁有合適的產品並滿足消費者的需求。

Outdoor, which includes under Rocky, Muck and XTRATUF brands, was again the category most impacted by retailer inventory levels in the period. A poor 2022 for industry created greater carryover than normal, which led to reduced bookings for new products ahead of this year's primary fall season.

戶外用品（包括 Rocky、Muck 和 XTRATUF 品牌）再次成為這段期間受零售商庫存水準影響最大的類別。 2022 年行業表現不佳，導致結轉量高於正常水平，導致今年主要秋季季節之前新產品的預訂量減少。

Hunting boots and apparel were most affected by carryover. And this was compounded by one large sporting goods retailer exiting the category altogether. That said, as I mentioned, when discussing our work product, both the XTRATUF and Muck brands delivered a notable improvement in this quarter, driven in part by new penetration of the outdoor product in more outdoor focused markets.

狩獵靴和服裝受殘留影響最大。一家大型體育用品零售商完全退出該類別，使情況變得更加複雜。也就是說，正如我所提到的，在討論我們的工作產品時，XTRATUF 和Muck 品牌在本季度都取得了顯著的進步，部分原因是戶外產品在更多以戶外為主的市場中的新滲透。

And last but not least within our wholesale segment, commercial military was a bright spot in the third quarter as orders from several suppliers to the US Army and the United States Marine Corps drove the strongest Q3 in recent memory for the business.

最後但並非最不重要的一點是，在我們的批發領域，商業軍事是第三季度的一個亮點，美國陸軍和美國海軍陸戰隊的幾家供應商的訂單推動了該業務第三季度的強勁表現。

Shifting to our retail segment, where sales were up 5% over last year, thanks to a very solid quarter from our direct e-commerce channel, each of our branded sites, Rocky, Georgia, Durango, Muck, and XTRATUF, were up double digits, which more than offset expected declines in marketplace transactions.

轉向我們的零售領域，銷售額比去年增長了 5%，這要歸功於我們直接電子商務管道的強勁季度表現，我們的每個品牌網站 Rocky、Georgia、Durango、Muck 和 XTRATUF 都增長了一倍數字，這遠遠抵消了市場交易的預期下降。

Through enhanced digital marketing efforts, we've been successful fostering more direct engagement with consumers, and we expect this trend to continue going forward, which should positively impact the segment's growth and margin portfolio.

透過加強數位行銷工作，我們已經成功地促進了與消費者更直接的接觸，我們預計這一趨勢將繼續向前發展，這應該會對該細分市場的成長和利潤組合產生積極影響。

Shifting to our B2B Lehigh business. Sales were in line with a year-ago levels. The temporary headwind from upgrades to our security protocols that we spoke about on our last earnings call in August are now fully behind us. And based on the recent event bookings, we are optimistic about the return to growth in the fourth quarter.

轉向我們的 B2B Lehigh 業務。銷售額與去年同期水準一致。我們在八月的上次財報電話會議上談到的安全協議升級帶來的暫時阻力現在已經完全過去了。根據最近的活動預訂情況，我們對第四季度的恢復成長持樂觀態度。

We are still very positive about our Lehigh business and the opportunity it provides in 2024 and beyond. While overall market conditions remain challenging, we are confident that our topline is positioned for further improvement on a sequential basis in the fourth quarter.

我們對 Lehigh 業務及其在 2024 年及以後提供的機會仍然非常樂觀。儘管整體市場狀況仍然充滿挑戰，但我們相信我們的營收將在第四季環比進一步改善。

With channel inventories continuing to come down and the demand for our durable, innovative, and accessibility priced work, western and outdoor footwear pickup, the difference between our sell-through and sell-in is nearly in parity. This dynamic, along with an improved balance sheet, sets us up for a good finish to 2023 and a strong start to next year.

隨著通路庫存持續下降，以及對我們耐用、創新和價格實惠的產品、西部和戶外鞋類提貨的需求，我們的銷售量和銷售量之間的差異幾乎持平。這種動態，加上資產負債表的改善，為我們在 2023 年取得良好的成績和明年的良好開局奠定了基礎。

I'll now turn the call over to Tom. Tom?

我現在會把電話轉給湯姆。湯姆？

Thanks, Jason. As Jason shared, an improving wholesale inventory landscape, along with our greater ability to convert sales into year-over-year earnings growth, allowed us to deliver better than expected results in the third quarter.

謝謝，傑森。正如傑森分享的那樣，批發庫存狀況的改善以及我們將銷售額轉化為同比盈利增長的能力更強，使我們能夠在第三季度取得好於預期的業績。

Net sales for the third quarter decreased 14.8% year over year or 12.7% on an adjusted basis to $125.6 million. By segment, on a reported basis, wholesale sales decreased 17.4% or 14.9% on an adjusted basis to $99.7 million. Retail sales increased 4.7% to $24.5 million, and contract manufacturing sales were $1.4 million.

第三季淨銷售額年減 14.8%，調整後下降 12.7%，至 1.256 億美元。按部門劃分，根據報告，批發銷售額下降 17.4%，調整後下降 14.9%，至 9,970 萬美元。零售額成長 4.7%，達到 2,450 萬美元，合約製造銷售額為 140 萬美元。

Turning to gross profit. For the third quarter, gross profit was $46.5 million or 37% of sales compared to adjusted gross margin of $50.8 million or 35.3% of sales the same period last year.

轉向毛利。第三季毛利為 4,650 萬美元，佔銷售額的 37%，而去年同期調整後毛利率為 5,080 萬美元，佔銷售額的 35.3%。

The 170 basis point increase in adjusted gross margin as a percentage of adjusted net sales was mainly attributable to increased wholesale segment gross margin as we realized the benefit of pricing action taken in 2022 as well as lower inbound logistics costs compared with the same period last year.

調整後毛利率佔調整後淨銷售額的百分比增加了170 個基點，主要歸因於批發部門毛利率的增加，因為我們意識到2022 年採取的定價行動的好處，以及與去年同期相比較低的入境物流成本。

A higher mix of retail segment sales which carry a higher gross margin than wholesale and contract manufacturing segments also contributed to the expansion in overall gross margins. During Q3 this year, we capitalized on some strategic opportunities to move certain discontinued products in our inventory.

零售業務的銷售組合比批發和合約製造業務的毛利率更高，這也促進了整體毛利率的擴張。今年第三季度，我們利用一些策略機會轉移了庫存中的某些停產產品。

While these sales were dilutive to gross margins versus our plan, this decision puts us on track to come in below our initial year-end inventory target and sets us up to begin 2024 in a much cleaner position.

雖然與我們的計劃相比，這些銷售稀釋了毛利率，但這一決定使我們預計將低於最初的年終庫存目標，並使我們在 2024 年開始時處於更加乾淨的狀態。

Gross margins by segment were as follows: wholesale, up 160 basis points to 34.7%; retail down, 70 basis points to 48.0%; and contract manufacturing, down 390 basis points to 11.5%. Operating expenses were $32.3 million or 25.7% of net sales in the third quarter of 2023 compared to $40.3 million or 27.3% net sales last year.

各部門的毛利率如下：批發，成長160個基點至34.7%；零售下降70個基點至48.0%；合約製造業下降 390 個基點至 11.5%。 2023 年第三季營運費用為 3,230 萬美元，佔淨銷售額的 25.7%，而去年為 4,030 萬美元，佔淨銷售額的 27.3%。

On an adjusted basis, operating expenses were $30.7 million this year and $39.5 million a year ago, with the decrease driven primarily by lower outbound freight expense, improved distribution center efficiencies, and other variable expenses associated with lower sales volumes.

調整後的營運費用今年為 3,070 萬美元，去年為 3,950 萬美元，下降的主要原因是出境貨運費用降低、配送中心效率提高以及與銷售下降相關的其他可變費用。

As a percentage of adjusted net sales, adjusted operating expenses improved 290 basis points to 24.5% in the third quarter of 2023. Income from operations was $14.3 million or 11.4% of net sales compared to $11.6 million or 7.9% of net sales in a year ago period.

2023 年第三季度，調整後營運費用佔調整後淨銷售額的百分比提高了290 個基點，達到24.5%。營運收入為1,430 萬美元，佔淨銷售額的11.4%，而上年同期為1,160 萬美元，佔淨銷售額的7.9%前一段時間。

Adjusted operating income was $15.8 million or 12.6% of net sales compared to adjusted operating income of $11.3 million or 7.9% of adjusted net sales a year ago. For the third quarter of this year, interest expense was $5.8 million compared with $4.2 million in the year ago period. The increase reflects increased interest rates on interest payments on our senior term loan and credit facility.

調整後營業收入為 1,580 萬美元，佔淨銷售額的 12.6%，而一年前調整後營業收入為 1,130 萬美元，佔調整後淨銷售額的 7.9%。今年第三季度，利息支出為 580 萬美元，去年同期為 420 萬美元。這一增長反映了我們的高級定期貸款和信貸安排的利息支付利率的增加。

On a GAAP basis, we reported net income of $6.8 million or $0.93 per diluted share compared to net income of $5.7 million or $0.77 per diluted share in the third quarter of 2022.

根據 GAAP 計算，我們報告的淨利潤為 680 萬美元，即稀釋後每股收益 0.93 美元，而 2022 年第三季淨利潤為 570 萬美元，即稀釋後每股收益 0.77 美元。

Adjusted net income for the third quarter of 2023 was $8 million or $1.09 per diluted share compared to adjusted net income of $5.5 million or $0.74 per diluted share in the year ago period.

2023 年第三季調整後淨利為 800 萬美元，即稀釋後每股收益 1.09 美元，而去年同期調整後淨利為 550 萬美元，即稀釋後每股收益 0.74 美元。

Turning to our balance sheet. At the end of the third quarter, cash and cash equivalents stood at $4.2 million and our debt totaled $213.9 million. We've made good progress in paying down our debt over the last 12 months with total indebtedness down 24.9% from the end of last September and down 16.7% since the end of 2022.

轉向我們的資產負債表。截至第三季末，現金和現金等價物為 420 萬美元，債務總額為 2.139 億美元。過去 12 個月，我們在償還債務方面取得了良好進展，總債務比去年 9 月底下降了 24.9%，自 2022 年底以來下降了 16.7%。

The big part of the debt paydown has been driven by our ability to strategically reduce inventory levels. At the end of the third quarter, inventories were $194.7 million, down 26.5% compared to $265.1 million a year ago, and down 17.3% compared with the end of 2022.

債務償還的很大一部分是由我們策略性降低庫存水準的能力所推動的。第三季末庫存為 1.947 億美元，比去年同期的 2.651 億美元下降 26.5%，比 2022 年底下降 17.3%。

Our plan is to now exit 2023 with inventories of approximately $175 million compared with our prior target of $185 million.

我們的計劃是到 2023 年結束時庫存約為 1.75 億美元，而先前的目標為 1.85 億美元。

Now to our outlook. Based on our year-to-date results and current view of the fourth quarter, we are reiterating our guidance for 2023 net sales to be approximately $470 million. This implies fourth quarter sales improve sequentially from Q3 and decline in Q4 on a year-over-year basis, further moderates compared to recent trends.

現在談談我們的展望。根據我們今年迄今的業績和對第四季度的當前看法，我們重申 2023 年淨銷售額約為 4.7 億美元的指導。這意味著第四季度的銷售額比第三季度連續改善，而第四季度的銷售額同比下降，與最近的趨勢相比進一步放緩。

Following the discontinued inventory reduction, actions we took in the third quarter and some planned promotions to move certain non-core products in the fourth quarter, we now expect full-year adjusted gross margins to be in the 38% to 39% range compared with 36.6% in 2022.

在停產庫存減少、我們在第三季採取的行動以及計劃在第四季度轉移某些非核心產品的促銷活動之後，我們現在預計全年調整後的毛利率將在38% 至39% 的範圍內，而2022 年為 36.6%。

For comparative purposes, it is important to remember that in Q4 of last year, gross margins benefited by 230 basis points from a onetime tariff overpayment recovery.

出於比較目的，重要的是要記住，去年第四季度，毛利率因一次性關稅超額支付恢復而受益於 230 個基點。

SG&A is now expected to only deleverage approximately 100 basis points from 2022's adjusted level and interest expense is now projected to be around $23 million due to higher interest rates.

目前，SG&A 預計僅比 2022 年調整後的水平去槓桿化約 100 個基點，由於利率上升，利息支出目前預計約為 2,300 萬美元。

All this implies that the fourth quarter adjusted earnings per share will be similar to both third quarter of this year and fourth quarter of 2022.

所有這些都意味著第四季度調整後每股收益將與今年第三季和 2022 年第四季相似。

That concludes our prepared remarks. Operator, we are now ready for questions.

我們準備好的演講到此結束。接線員，我們現在準備好提問了。

(Operator Instructions) Jeff Lick, B. Riley.

（操作員說明）Jeff Lick，B. Riley。

Hi, guys. Congrats on a great quarter. Jason, I was curious, you mentioned that sell-in and sell-through were at parity now. So I guess that's the implication there is you're fulfilling one for one.

嗨，大家好。恭喜您度過了一個出色的季度。傑森，我很好奇，你提到現在的賣出和賣出是平價的。所以我想這意味著你正在一對一地履行職責。

I'm just -- I'm kind of curious, where has the improvement picked up the most and where -- and you also made the comment that the spring orders were stronger than quite some time.

我只是——我有點好奇，哪裡的改善最大，哪裡——你也評論說春季訂單比相當長一段時間都強勁。

So I'm just kind of curious as things evolved in Q3 and now we start to look at the spring where have things picked up the most?

所以我有點好奇第三季情況的發展，現在我們開始關注春季，哪裡的情況回升最多？

Yes, thanks, Jeff. I would tell you -- it might be easier to tell you where things are the slowest. The outdoor category is still our most difficult. So in the work -- in the work western and then really the XTRATUF, ankle deck boots and stuff, that's all doing much better.

是的，謝謝，傑夫。我會告訴你——告訴你哪裡的速度最慢可能會更容易。戶外類別仍然是我們最難的。所以在工作中——在西部工作中，然後是 XTRATUF、踝靴之類的東西，這些都做得更好。

I will tell you, though, the retailers are still being very cautious and they're ordering from us on a little more regular basis. But I don't see any big things coming there, just more of a normal pattern.

不過，我會告訴你，零售商仍然非常謹慎，他們從我們這裡訂購的情況更加頻繁。但我沒有看到任何重大事件發生，只是更正常的模式。

And then yes, we are definitely seeing good spring bookings for all the brands. Outdoor, again, is the smaller of any of them, and that would probably be pretty normal for spring product anyway.

是的，我們肯定看到所有品牌的春季預訂量都不錯。同樣，戶外是其中較小的一個，無論如何，這對於春季產品來說可能是很正常的。

And then as it relates to SG&A, Tom, obviously you guys are -- that's become a source of some upside. I'm just curious where's that coming from in terms of just different types of buckets?

然後，當涉及到 SG&A 時，湯姆，顯然你們是——這已經成為一些好處的來源。我只是好奇不同類型的桶子的這種情況是從哪裡來的？

Hey, Jeff, thanks. I would say that the two biggest areas are very clearly on the freight and handling side. So you know, renegotiation of parcel rates, part of that has been more effective on where we're shipping product from, right?

嘿，傑夫，謝謝。我想說，兩個最大的領域非常明顯是在貨運和裝卸方面。所以你知道，包裹費率的重新談判，其中一部分對於我們從哪裡運送產品來說更加有效，對吧？

And we've talked a lot about getting inventory in the right distribution centers. We've made progress there. And we've also -- we're shipping product smarter than we shipped product in the same period last year.

我們已經討論了很多關於在正確的配送中心獲取庫存的問題。我們在那裡取得了進展。我們也—我們以比去年同期更聰明的方式交付產品。

Also a lot of work has been put into the distribution centers themselves and reducing a lot of the costs that are associated with picking and packing the orders. So we're just being really overall more efficient on all the inventory going outbound.

此外，配送中心本身也投入了大量工作，並減少了與訂單揀選和包裝相關的大量成本。因此，我們只是在所有庫存出庫方面真正提高了整體效率。

Also, we've talked about some of the synergies. You recognize it from some of the reorganization too. And so, we're seeing some of the benefits from a wage and benefit standpoint as well.

此外，我們也討論了一些協同效應。你也可以從一些重組中認識到這一點。因此，從薪資和福利的角度來看，我們也看到了一些好處。

And so the freight and handling -- so if we were talking about SG&A, that's -- you're talking about outbound freights then, correct?

那麼貨運和裝卸——如果我們談論SG&A，那麼——你談論的是出境貨運，對嗎？

Yes, correct.

是，對的。

Okay. And then if I could just one more question. You had mentioned your retail, your direct sites, each of the five were up double digits. I'm curious, Q4 is your biggest kind of retail component given the holiday season. Anything you could elaborate there interest in terms of what you're seeing and how you're feeling about holiday?

好的。那我還能再問一個問題嗎？您提到了您的零售、直接網站，這五個網站都實現了兩位數的成長。我很好奇，第四季是假期期間最大的零售組成部分。您可以詳細說明您所看到的內容以及您對假期的感受嗎？

Yeah, I think I can start off and Jason (technical difficulty) I think we're feeling very good about our e-commerce business. We think this is, again, the one area that takes out any kind of inventory challenge that we have in the wholesale category.

是的，我想我可以開始了，傑森（技術難度）我認為我們對我們的電子商務業務感覺非常好。我們認為，這再次是解決我們在批發類別中面臨的任何庫存挑戰的一個領域。

An important call out too, is that is that we have been much more promotional with our discontinued product online. This is the most profitable way for us to unload our discontinued inventory. And so, we've been much more aggressive in marketing that and we're priced much more aggressively, hence the slight decrease in retail margins.

一個重要的呼籲是，我們對已停產的產品進行了更多的線上促銷。這是我們卸載停產庫存的最有利可圖的方式。因此，我們在行銷方面更加積極，定價也更加積極，因此零售利潤略有下降。

But we've continued to see a similar trend, and yet to the start of Q4 from the e-commerce perspective.

但我們繼續看到類似的趨勢，從電子商務的角度來看，直到第四季開始。

Yeah, I would just add weather like today and this week that's happening here really on the East Coast is definitely going to help us. It's unbelievable and particularly in the Muck brand when weather comes, how it affects that brand, it really affects all the brands.

是的，我只想添加像今天這樣的天氣，本週在東海岸發生的情況肯定會對我們有所幫助。這是令人難以置信的，特別是在 Muck 品牌中，當天氣來臨時，它如何影響該品牌，它確實影響了所有品牌。

If it's cold and nasty and wet outside, people are more likely to go buy some new boots to keep their feet warm and dry. I will say that I think we are being cautiously optimistic in regards to the economy and what might happen from a holiday standpoint.

如果外面又冷又濕，人們更有可能去買一些新靴子來保持雙腳溫暖和乾燥。我想說的是，我認為我們對經濟以及從假期的角度可能發生的情況持謹慎樂觀的態度。

And I think most of the retail partners are taking a similar kind of approach just to be -- they want to have the product and they want to have the inventory, but they're being cautious about it.

我認為大多數零售合作夥伴都採取了類似的方法——他們想要擁有產品，他們想要擁有庫存，但他們對此持謹慎態度。

So I think it's going to be fine, but it's -- I don't think it's going to be as planned, though.

所以我認為一切都會好起來的，但我認為它不會按計劃進行。

I think to Jason's point there, we're seeing our at once business compared to bookings as a percent of sales over the last quarter and certainly over the last few quarters has been elevated, right?

我認為傑森的觀點是，我們看到我們的一次性業務與上個季度的預訂量相比，在過去幾個季度的銷售額中所佔的百分比有所上升，對嗎？

So that just shows you the retailers are buying when they need it versus looking at it in advance. So that's why a little bit of cautiousness in Q4.

因此，這只是表明零售商是在需要時購買，而不是提前查看。這就是為什麼第四季有點謹慎的原因。

Great. I'll let someone else ask a question.

偉大的。我讓別人問一個問題。

Thanks, Jeff.

謝謝，傑夫。

Jonathan Komp, Baird.

喬納森康普，貝爾德。

Yeah, hi, thanks. Good afternoon. Maybe just to follow up there to start, Tom, I know previously you're expecting to get back closer to flat year-over-year revenue growth in the fourth quarter.

是的，嗨，謝謝。午安.湯姆，我知道您之前預計第四季度的收入將接近持平的水平，也許只是從這裡開始。

So could you just talk a little bit more about the revised view, what's shaping that, and how much, if any, third and fourth quarter is -- they're more onetime in nature to clear goods versus what you see for underlying demand signals?

那麼，您能否多談談修訂後的觀點，是什麼影響了這一觀點，以及第三和第四季度的影響程度（如果有的話）——與您所看到的潛在需求信號相比，它們本質上更像是一次清理商品？

Yeah, sure, John. I think we are, again, to use Jason's vocabulary here, being cautiously optimistic for the fourth quarter and just reiterating overall top-line guidance.

是的，當然，約翰。我認為我們在這裡再次使用傑森的詞彙，對第四季度持謹慎樂觀態度，並重申整體營收指引。

Q3 was a little bit better than we anticipated, and that's probably low single digits, in the $1 million range -- low million range of discontinued product at the new down in the third quarter, and we'll probably continue that into Q4.

第三季比我們預期的要好一點，這可能是低個位數，在100 萬美元範圍內——第三季度新的停產產品的低百萬範圍，我們可能會在第四季度繼續這種情況。

But I think we're just going to continue to be cautious here as we work through the rest of the year, given everything that's going on back in the macro-environment.

但我認為，考慮到宏觀環境中發生的一切，我們在今年剩餘時間將繼續保持謹慎。

And then if I could just ask maybe a broader question.

然後我是否可以問一個更廣泛的問題。

Given some of the commentary you shared around order bookings and some of the product initiatives, when you think out looking forward beyond fourth quarter, how soon do you think you can return to growth overall just based on your planning and what you see in the environment?

鑑於您分享的有關訂單預訂和一些產品計劃的一些評論，當您展望第四季度之後的情況時，您認為僅根據您的規劃和您在環境中看到的情況，您多久可以恢復整體增長？

Yeah, it's a great question. We have we have been really trying to dig into this and understand. I think we are going to take a pretty cautious approach to what that might look like in 2024.

是的，這是一個很好的問題。我們一直在努力深入研究並理解這一點。我認為我們將對 2024 年的情況採取非常謹慎的態度。

We're coming off one of the -- in my opinion, one of the craziest years in 2023, and we're getting ready to go into a 2024 election year, which is also another challenging component.

在我看來，2023 年是最瘋狂的一年之一，我們正準備進入 2024 年選舉年，這也是另一個具有挑戰性的組成部分。

So I think, our plan will be to go into 2024, continue to stay focused on our operations, our internal operational excellence, and manage our SG&A, and try to continue to find ways to grow the brands where we see the opportunities.

因此，我認為，我們的計劃是進入 2024 年，繼續專注於我們的營運、我們的內部卓越運營，並管理我們的 SG&A，並嘗試繼續尋找在我們看到機會的地方發展品牌的方法。

Like I said, we're still excited about Lehigh, and we think that might be a different kind of approach next year or different opportunity next year, too. So, you know, excited to get the hell out of '23 and get into '24 and get back kind of on our regular pattern, John, of just slow growth, but throwing some money on online.

就像我說的，我們仍然對裡哈伊大學感到興奮，我們認為明年這可能會是一種不同的方法，或者明年會有不同的機會。所以，你知道，很高興能擺脫 23 年的困境，進入 24 年，回到我們的常規模式，約翰，增長緩慢，但在網上投入了一些錢。

I think just to add on to that, John, this quarter is a good example of how the operations have been rightsized. And so, we'll be prepared for 2024, right? And retail will do what retail is going to do and the time has to do with the timing will do. But we will be able to take advantage of it if the sales come.

約翰，我想補充一點，本季是如何調整營運規模的一個很好的例子。那麼，我們將為 2024 年做好準備，對吧？零售業將做零售業將要做的事情，時間與時機有關。但如果銷量到來，我們將能夠利用它。

It makes sense. And just last one for me, Tom, maybe Jason, have you shared any color on the CFO transition passed back to you, Tom, and then how long you'll be willing to take on the role again since you had other responsibilities, just any broader thoughts there? Thanks again.

這說得通。最後一個問題是，湯姆，也許是傑森，您是否分享了有關首席財務官過渡的任何信息，並傳回給您，湯姆，然後您願意在多長時間內再次擔任該職位，因為您還有其他職責，只是有更廣泛的想法嗎？再次感謝。

Yeah. So I'll be the CFO for Rocky for 6 years -- 6.5 years before we will open the last CFO. And I think the plan and intention is that we're going to take our time rehiring. We want to make sure we find the right candidate.

是的。因此，我將擔任 Rocky 的財務長 6 年，即 6.5 年，然後我們將任命最後一位財務長。我認為我們的計劃和意圖是我們將慢慢重新招募。我們希望確保找到合適的候選人。

We're very fortunate that I've done this for so long and it's not going to be a big burden on me to continue to do this while we look for the next CFO. So we look forward to updating you guys on that later.

我們很幸運，我已經這樣做了這麼長時間，在我們尋找下一任財務長的同時繼續這樣做不會對我造成很大的負擔。因此，我們期待稍後向大家通報最新情況。

Yeah, I would just add that we have a great team of people here that are supporting Tom as well from the CFO side. We've got a great team of people that are helping and supporting Tom and me from the COO side or the operation side.

是的，我想補充一點，我們這裡有一支優秀的團隊，他們也從財務長的角度支持湯姆。我們有一支優秀的團隊，他們從營運長或營運方面為我和湯姆提供幫助和支援。

And the team has really stepped up and done an amazing job in getting us where we are today through Q3. And so as Tom said, the culture of our company is really important to both of us and I think everybody in the company. And so we're going to be cautious here and take our time and make sure the next our fit is right for us.

團隊確實加強了工作，並做了出色的工作，使我們在第三季度取得了今天的成績。正如湯姆所說，我們公司的文化對我們雙方以及公司裡的每個人都非常重要。因此，我們將在這裡保持謹慎，慢慢來，確保下一次適合我們。

All right. Thanks again.

好的。再次感謝。

Thanks, John.

謝謝，約翰。

Janine Stichter, BTIG.

珍妮‧史蒂克特 (Janine Stichter)，BTIG。

Hey, you got Ethan Saghi for Janine. Hope you guys are doing well. I just got one on my end, it's regarding SG&A margin.

嘿，你為珍妮找到了伊森·薩吉。希望你們一切順利。我剛剛收到一份關於銷售、管理及行政費用 (SG&A) 利潤的資訊。

I was just wondering if you could give any color on what that might look like in Q4 and going forward, and if we should maybe expect it to stay lower in that kind of mid-20s range or if we should expect it to go kind of back further towards the high 20s, low 30s range? Thanks.

我只是想知道您是否可以對第四季度和未來的情況給出任何顏色，以及我們是否應該期望它保持在 20 年代中期的較低範圍內，或者我們是否應該期望它會變得有點進一步回到20多歲、30多歲低的範圍？謝謝。

Yeah. Hey, Ethan. I'll take this one and Jason feel free to add. But I think we kind of guided to the deleveraging in the prepared remarks. But it implies essentially kind of in between the 25% and 30% range, probably leaning closer to the higher 20s.

是的。嘿，伊森。我會接受這個，傑森隨時補充。但我認為我們在準備好的演講中有點引導去槓桿化。但它本質上意味著介於 25% 和 30% 之間，可能更接近 20%。

And I think it's important to call out that is if you think about the mix of sales in the fourth quarter, significant more e-commerce orders in particular, so we see freight as a percent of sales, I mean, even our handling as a percent of sales ticked up in the fourth quarter, historically. So I would I would put it in that 27% to 29% range.

我認為重要的是要指出這一點，如果你考慮第四季度的銷售組合，特別是電子商務訂單的顯著增加，所以我們將運費視為銷售額的百分比，我的意思是，甚至我們的處理作為從歷史上看，第四季度的銷售額百分比有所上升。所以我會把它放在 27% 到 29% 的範圍內。

Got it. Appreciate it and congrats on the nice quarter.

知道了。對此表示讚賞並祝賀這個美好的季度。

Thanks, Ethan.

謝謝，伊森。

There are no further questions at this time. I would now like to turn the floor back over to Jason Brooks closing comments.

目前沒有其他問題。我現在想請傑森布魯克斯發表結束語。

Thank you very much. Just to wrap things up, I'd really like to thank our shareholders, our vendors and customers as we've really had to navigate a challenging 2023 and which has been challenging for a lot of companies and people.

非常感謝。總而言之，我真的要感謝我們的股東、供應商和客戶，因為我們確實必須度過充滿挑戰的 2023 年，這對許多公司和個人來說​​都是一個挑戰。

And then I really would like to thank the entire Rocky team, who just works effortlessly and diligently to make Rocky Brands the best company it can be. The team's morale is well, and we are excited about the future of this company and look forward to continuing to build Rocky Brands. So thank you all very much, Rocky.

然後，我真的要感謝整個 Rocky 團隊，他們毫不費力、勤奮工作，讓 Rocky Brands 成為最好的公司。團隊士氣高昂，我們對公司的未來感到興奮，並期待繼續打造 Rocky Brands。非常感謝你們，洛基。

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

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。