Sally Beauty Holdings Inc (SBH) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to Sally Beauty Holdings conference call to discuss the company's first-quarter fiscal 2024 results. (Operator Instructions)

大家早安，歡迎參加 Sally Beauty Holdings 電話會議，討論該公司 2024 財年第一季業績。（操作員說明）

Now I would like to turn the call over to Jeff Harkins, Vice President of Investor Relations and Treasurer for Sally Beauty Holdings.

現在我想將電話轉給 Sally Beauty Holdings 投資者關係副總裁兼財務主管 Jeff Harkins。

Thank you. Good morning, everyone, and thank you for joining us. With me on the call today are Denise Paulonis, President and Chief Executive Officer; and Marlo Cormier, Chief Financial Officer.Before we begin, I would like to remind everyone that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent annual report on Form 10-K and other filings with the SEC. Any forward-looking statements made on this call represent our views only as of today and we undertake no obligations to update them. The company has provided a detailed explanation and reconciliations of its adjusting items and non-GAAP financial measures in its earnings press release and on its website.Now I'd like to turn the call over to Denise to begin the formal remarks.

謝謝。大家早安，感謝您加入我們。今天與我一起參加電話會議的是總裁兼執行長 Denise Paulonis；在我們開始之前，我想提醒大家，管理階層在這次電話會議上的言論可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。由於各種重要因素，包括我們最新 10-K 表格年度報告和向 SEC 提交的其他文件的風險因素部分中討論的因素，實際結果可能與這些前瞻性陳述所示的結果存在重大差異。本次電話會議中所做的任何前瞻性陳述僅代表我們今天的觀點，我們不承擔更新這些陳述的義務。該公司在其收益新聞稿和網站上提供了對其調整項目和非公認會計準則財務指標的詳細解釋和調節。現在我想將電話轉給丹尼斯，讓他開始正式發言。

Thank you, Jeff, and good morning, everyone. We're pleased with our start to fiscal 2024 marked by financial performance that was in line with our forecast. First-quarter net sales of $931 million declined 2.7%, primarily reflecting the lapping of store closures that occurred in December of 2022, while comparable sales declined 0.8% in the quarter. Adjusted gross margin was above 50% and in line with our expectations, and adjusted operating margin came in at 7.9%.

謝謝你，傑夫，大家早安。我們對 2024 財年的開局感到滿意，財務表現符合我們的預測。第一季淨銷售額為 9.31 億美元，下降 2.7%，主要反映了 2022 年 12 月發生的商店關閉，而本季可比銷售額下降了 0.8%。調整後毛利率高於 50%，符合我們的預期，調整後營業利益率為 7.9%。

Additionally, we generated solid operating cash flow of more than $50 million, enabling us to return value to shareholders through $20 million of share repurchases. In our BSG segment, Q1 comparable sales were up 1% as we saw a modest strengthening in salon demand trends, coupled with strong momentum from recent product launches and our acquisition of Goldwell of New York. Comparable transactions increased 3%, while average ticket values declined 2%.

此外，我們還產生了超過 5,000 萬美元的穩定營運現金流，使我們能夠透過 2,000 萬美元的股票回購向股東回報價值。在我們的 BSG 部門，第一季可比銷售額成長了 1%，因為我們看到沙龍需求趨勢略有加強，加上最近產品發布和我們收購紐約 Goldwell 帶來的強勁勢頭。可比交易量增加了 3%，而平均票價下降了 2%。

In our Sally segment, customer shopping behavior remains fairly consistent with recent quarters as they continued buying primarily (technical difficulty). Q1 comparable sales were down 3% with comparable transactions down 4% and average ticket value up 2%. Our teams continue to execute well against our core strategic initiatives of enhancing our customer centricity, growing our high-margin owned brands and amplifying innovation, and increasing the efficiency of our operations.

在我們的 Sally 細分市場中，客戶的購物行為與最近幾季相當一致，因為他們繼續主要購買（技術難度）。第一季可比銷售額下降 3%，可比交易量下降 4%，平均票價上漲 2%。我們的團隊持續出色地執行我們的核心策略舉措，即加強以客戶為中心、發展高利潤自有品牌、擴大創新以及提高營運效率。

To that end, we continue to expect that product innovation, territory expansion, and new services will contribute 200 to 300 basis points to our topline performance this year. During the first quarter, in line with our expectations, these initiatives contributed over 200 basis points to our comparable sales results with product innovation being the predominant driver. Let me share a few highlights.

為此，我們繼續預期產品創新、領土擴張和新服務將為我們今年的營收貢獻 200 至 300 個基點。第一季度，這些措施為我們的可比較銷售業績貢獻了 200 多個基點，與我們的預期一致，其中產品創新是主要驅動力。讓我分享一些亮點。

Starting with product innovation, we're seeing momentum across our both our own and third-party brands. In Q1, owned-brand sales penetration for the global Sally Beauty segment was 34%, up 20 basis points over the prior year. Additionally, our bondbar and ION lines continue to perform well with notable strength in bondbar care and ION color. Of note, ION remains our largest owned brand in the US and Canada, and bondbar has grown to be our fifth largest own brand in just over a year's time in the market.

從產品創新開始，我們看到了我們自己和第三方品牌的發展勢頭。第一季度，全球 Sally Beauty 細分市場的自有品牌銷售滲透率為 34%，較上年增長 20 個基點。此外，我們的 bondbar 和 ION 系列繼續表現良好，在 bondbar 護理和 ION 顏色方面具有顯著的優勢。值得注意的是，ION 仍然是我們在美國和加拿大最大的自有品牌，而 bondbar 在短短一年多的時間裡已成長為我們在市場上的第五大自有品牌。

We're also seeing strong performance in the textured hair category, where we have a pipeline of innovation planned for later this year. Beginning next month, we'll have several product launches happening throughout 2024 across color, care, styling tools, and appliances, encompassing both our proprietary lines and national brands.

我們還看到紋理頭髮類別的強勁表現，我們計劃在今年稍後推出一系列創新產品。從下個月開始，我們將在 2024 年推出多項產品，涵蓋色彩、護理、造型工具和電器，涵蓋我們的專有產品線和全國品牌。

Turning to innovation at BSG, standout performers include Amika, Wella's Ultimate Repair, Moroccan Oil, and Color Wow. During the first quarter, we expanded our distribution territory for both Moroccan Oil and Color Wow, and we have additional expansion opportunity across our brand portfolio.

談到 BSG 的創新，表現出色的包括 Amika、Wella's Ultimate Repair、Moroccan Oil 和 Color Wow。在第一季度，我們擴大了 Moroccan Oil 和 Color Wow 的分銷範圍，我們的品牌組合有更多的擴張機會。

Additionally, we captured the first full quarter of sales from our Goldwell of New York acquisition. The BSG segment also has a robust pipeline of innovation planned for this year, which will be particularly meaningful to our stylists as we partner with them to profitably grow their businesses. You can expect to see launches in both new and existing brands across blonding, glossing, and express coloring as well as conscious beauty and textured hair.

此外，我們也透過收購紐約 Goldwell 獲得了第一個完整季度的銷售額。BSG 部門今年也計劃推出一系列強大的創新，這對我們的造型師特別有意義，因為我們與他們合作，以實現業務的獲利成長。您可以期待看到新品牌和現有品牌推出的產品，涉及金髮、光澤、表達色彩以及意識美容和質感頭髮。

Our ongoing focus on customer centricity continues to serve us well. In Q1, we generated 77% of sales from our $16 million Sally US and Canada loyalty members while our BSG Rewards credit card purchases represented 8% of sales.

我們對以客戶為中心的持續關注繼續為我們提供良好服務。第一季度，我們 77% 的銷售額來自價值 1,600 萬美元的 Sally 美國和加拿大忠誠會員，而我們的 BSG Rewards 信用卡購買額佔銷售額的 8%。

Our new concepts and services are building momentum, and we are tracking to our plans for full-year fiscal '24. Our licensed colorist on-demand initiative is helping us extend our reach and continues to gain traction. In Q1, 36% of our customers who engaged in this service were new to Sally. That's up from just north of 30% in Q4. At quarter end, we had 40 licensed colorists on the platform and plan to expand that to approximately 100 this fiscal year as demand for the service grows.

我們的新概念和服務正在累積動力，我們正在追蹤 24 財年全年計畫。我們的許可調色師按需計劃正在幫助我們擴大業務範圍並繼續獲得關注。在第一季度，參與這項服務的客戶中有 36% 是 Sally 的新客戶。這比第四季的 30% 有所上升。截至季末，我們的平台上有 40 名獲得許可的調色師，併計劃隨著服務需求的增長，在本財年將其擴大到約 100 名。

We're also gaining traction in our marketplace initiatives, which launched with Walmart in Q4 of last year, building on the success we've had with (inaudible). In the coming quarters, we plan to add DoorDash and Instacart, which will enable us to leverage in-store fulfillment.

我們的市場計劃也獲得了關注，該計劃於去年第四季度與沃爾瑪合作推出，建立在我們與沃爾瑪合作取得成功的基礎上。（聽不清楚）。在接下來的幾個季度中，我們計劃添加 DoorDash 和 Instacart，這將使我們能夠利用店內配送。

Turning now to Happy Beauty Co. At fiscal year end, we had 10 pilot stores in operation, and we are very pleased with Q1 performance which included the holiday selling season. We expected the stores to be an attractive gift-giving destination, and we're gratified to see that take shape with consistent increases in traffic, conversion, and average transaction value throughout November and December. We are continuing to build awareness of Happy Beauty with grassroots marketing initiatives and remain enthusiastic about the potential to build a sizable portfolio over the long term.

現在轉向快樂美容公司。截至本財年末，我們有 10 家試點店在運營，我們對第一季的業績（包括假日銷售季）感到非常滿意。我們預計這些商店將成為一個有吸引力的送禮目的地，我們很高興地看到，整個11 月和12 月，隨著客流量、轉換率和平均交易價值的持續增長，這一目標已初具規模。我們將繼續透過草根行銷活動來提高 Happy Beauty 的知名度，並對長期建立規模可觀的產品組合的潛力保持熱情。

When we look across the business at both our Sally and BSG segments and our customers and how they're behaving and at the same time consider the potential of our newer growth strategy, we're confident that we're on the right course to reignite sales.

當我們縱觀 Sally 和 BSG 細分市場以及客戶的業務以及他們的行為方式，同時考慮我們新的成長策略的潛力時，我們相信我們正走在重新點燃活力的正確道路上。銷售量。

Building on our Q1 results which were in line with our expectations, we're maintaining our full-year fiscal 2024 guidance which calls for net sales and comparable sales to be approximately flat. This reflects 200 to 300 basis points and anticipate growth from our strategic initiatives, as I mentioned earlier, offset by the expectation that macro factors will continue to pressure consumer spending. In the second half of the year, we expect to see sequential improvement in comparable sales as we further advanced our strategic initiatives.

基於符合我們預期的第一季業績，我們維持 2024 財年全年指引，即淨銷售額和可比銷售額大致持平。正如我之前提到的，這反映了 200 至 300 個基點，並預計我們的策略舉措將帶來成長，但宏觀因素將繼續給消費者支出帶來壓力，這一預期將抵消這一增長。下半年，隨著我們進一步推進策略舉措，我們預計可比銷售額將持續改善。

We are also continuing to prioritize profitability. Our Fuel for Growth initiative is underway, and we remain on track to capture previously announced pre-tax benefit of $20 million in fiscal 2024. I want to highlight that this is a comprehensive program that is fundamentally changing the way we operate and support our long-term growth algorithm for a low double-digit operating margin. To that end, we recently partnered with an external resource and have begun to uncover incremental opportunities around merchandising margins, non-trade spend, inventory efficiency, supply chain, automation, and outsourcing that will take effect in fiscal years 2025 and 2026.

我們也繼續優先考慮盈利能力。我們的成長燃料計畫正在進行中，我們仍有望在 2024 財年獲得先前宣布的 2,000 萬美元的稅前福利。我想強調的是，這是一項全面的計劃，從根本上改變我們的營運方式，並支持我們實現低兩位數營運利潤率的長期成長演算法。為此，我們最近與外部資源合作，並開始發現圍繞商品利潤、非貿易支出、庫存效率、供應鏈、自動化和外包的增量機會，這些機會將於 2025 和 2026 財年生效。

As an outgrowth of this initial assessment, we identified another tranche of potential pre-tax benefits totaling approximately $50 million in fiscal 2025, with cumulative run rate benefits in fiscal 2026 expected to approach $120 million. We'll have more to share on our roadmap as we continue our analysis in the coming months.

初步評估的結果，我們確定了 2025 財年的另一筆潛在稅前福利總額約為 5,000 萬美元，預計 2026 財年的累積運行率福利將接近 1.2 億美元。隨著我們在未來幾個月繼續分析，我們將在路線圖上分享更多內容。

We're pleased to have started fiscal 2024 with strong execution and look forward to further advancing our initiatives across customer centricity, innovation, and efficiency throughout the year. We believe these focus areas are important pillars to attract new customers, increasing our share of wallet, and strengthening our competitive position. Our teams are highly engaged. Our deep understanding of shopping behavior and purchasing patterns among our retail customers and BSG stylists is enabling us to effectively navigate the dynamic macro environment.

我們很高興以強有力的執行力開啟 2024 財年，並期待全年進一步推進我們在以客戶為中心、創新和效率方面的舉措。我們相信這些重點領域是吸引新客戶、增加我們的錢包份額並增強我們的競爭地位的重要支柱。我們的團隊高度投入。我們對零售客戶和 BSG 造型師的購物行為和購買模式的深入了解使我們能夠有效應對動態的宏觀環境。

Our strong market positioning, and the traction we're seeing in our initiative underpin our confidence in the long-term growth algorithm we've previously communicated, which calls for low to mid-single-digit topline growth and low double-digit operating margin. We greatly appreciate your continued support and remain committed to increasing value for all of our stakeholders.

我們強大的市場定位以及我們在計劃中看到的吸引力增強了我們對先前傳達的長期成長演算法的信心，該演算法要求實現低至中個位數的營收成長和低兩位數的營業利潤率。我們非常感謝您的持續支持，並將繼續致力於為所有利害關係人增加價值。

Now I'll turn the call over to Marlo to discuss the financials.

現在我將把電話轉給馬洛討論財務問題。

Thank you, Denise, and good morning, everyone. We're pleased to begin the year with financial results in line with our expectations and continued progress against our strategic initiatives.

謝謝你，丹尼斯，大家早安。我們很高興以符合我們預期的財務業績開始新的一年，並在我們的策略舉措方面持續取得進展。

First quarter consolidated net sales of $931 million declined 2.7%, primarily reflecting the unfavorable impact from our December 2022 store closures and 90 basis points of favorable foreign currency exchange impact. Consolidated comparable sales declined 0.8%. Global e-commerce sales were $91 million and represented 10% of total net sales.

第一季合併淨銷售額為 9.31 億美元，下降 2.7%，主要反映了 2022 年 12 月門市關閉的不利影響以及 90 個基點的有利外匯影響。綜合可比銷售額下降 0.8%。全球電子商務銷售額為 9,100 萬美元，佔總淨銷售額的 10%。

Looking at gross profit, we maintained strong adjusted gross margin which came in at 50.2%, down 60 basis points versus a year ago. Supply chain efficiencies drove lower distribution and freight costs in the quarter which were more than offset by sales mix shift between Sally Beauty and BSG, as well as unfavorable fixed cost absorption related to the timing of inventory receipts. First-quarter adjusted SG&A was up $3 million to $393 million, primarily reflecting increased labor costs and rent expense as well as other costs related to our strategic initiatives, partially offset by savings from our distribution center consolidation and store optimization actions last year.

從毛利來看，我們維持了強勁的調整後毛利率，為 50.2%，比一年前下降了 60 個基點。供應鏈效率降低了本季的分銷和貨運成本，但這一成本被 Sally Beauty 和 BSG 之間的銷售組合轉變以及與庫存收貨時間相關的不利固定成本吸收所抵消。第一季調整後的SG&A 增加了300 萬美元，達到3.93 億美元，主要反映了勞動力成本和租金費用以及與我們的戰略計劃相關的其他成本的增加，部分被去年配送中心整合和商店優化行動所節省的成本所抵銷。

For the full year, we expect SG&A dollars to be up modestly versus fiscal 2023. This primarily reflects increased labor costs as well as investments in upper funnel marketing and other expenses related to our strategic growth initiatives, partially offset by the favorable impact of our Fuel for Growth initiative. As a reminder, we expect to realize $20 million of pre-tax benefits to gross margin and SG&A during the second half of fiscal 2024. For perspective, approximately 75% of the benefits will be realized in SG&A.

就全年而言，我們預計 SG&A 美元將比 2023 財年小幅成長。這主要反映了勞動力成本的增加以及對上漏斗行銷的投資以及與我們的策略成長計劃相關的其他費用，但部分被我們的成長燃料計劃的有利影響所抵消。提醒一下，我們預計在 2024 財年下半年實現毛利率和銷售管理費用 (SG&A) 的稅前收益將達 2,000 萬美元。從長遠來看，大約 75% 的收益將在 SG&A 中實現。

As Denise mentioned, we're expanding the scope of our Fuel for Growth initiative and now expect to capture incremental cost of goods and SG&A savings in fiscal year 2025 of approximately $50 million. We are in the process of uncovering additional opportunities and building the roadmap for fiscal 2026, which should see us approach $120 million in cumulative benefits. We expect to incur pre-tax charges associated with the Fuel for Growth program in the range of $25 million to $30 million in the current fiscal year, including $5 million that was realized in Q1.

正如 Denise 所提到的，我們正在擴大成長燃料計畫的範圍，現在預計在 2025 財年實現增量商品成本和 SG&A 節省約 5,000 萬美元。我們正在尋找更多機會並製定 2026 財年路線圖，預計我們的累積效益將接近 1.2 億美元。我們預計本財年將產生與成長燃料計畫相關的稅前費用在 2,500 萬至 3,000 萬美元之間，其中包括第一季實現的 500 萬美元。

Turning now to earnings. Adjusted operating margin came in at 7.9%. Adjusted EBITDA margin was 11.5%, and adjusted diluted earnings per share was $0.39. Moving to segment results, Sally Beauty comparable sales declined 2%, while net sales were down 5% as we lapped our 2022 store closures and our Sally customer remained frugal buying primarily to need.

現在轉向收益。調整後營業利益率為 7.9%。調整後 EBITDA 利潤率為 11.5%，調整後稀釋每股收益為 0.39 美元。轉向細分市場業績，Sally Beauty 可比銷售額下降了 2%，而淨銷售額下降了 5%，因為我們在 2022 年關閉了商店，而且我們的 Sally 客戶仍然主要根據需要而節儉購買。

At constant currency, Sally e-commerce sales were $35 million and represented 7% of segment net sales. For the global Sally Beauty segment, color was down 4% and care was flat. At Sally US and Canada, color was down 7%, and care was down 5%, including the impact of store closures.

以固定匯率計算，Sally 電子商務銷售額為 3,500 萬美元，佔該部門淨銷售額的 7%。對於全球 Sally Beauty 細分市場，色彩下降 4%，護理持平。在 Sally 美國和加拿大，色彩下降了 7%，護理下降了 5%，其中包括商店關閉的影響。

We believe the category data reflects macro-driven pressure on consumer spending and would highlight that market data shows our market share for color and care remained stable over the prior year. Gross margin at Sally was 58.6%, down 30 basis points to last year driven primarily by an unfavorable sales mix shift between higher margin Sally US sales and lower margin Sally international sales, as well as unfavorable fixed cost absorption, partially offset by supply chain efficiencies which drove lower distribution and freight costs. Segment operating margin came in at 14.8%.

我們認為，品類數據反映了宏觀驅動的消費者支出壓力，並強調市場數據顯示我們的色彩和護理市場份額比上一年保持穩定。Sally 的毛利率為58.6%，比去年下降30 個基點，主要是由於利潤率較高的Sally 美國銷售和利潤率較低的Sally 國際銷售之間不利的銷售組合轉變，以及不利的固定成本吸收，部分被供應鏈效率所抵消這降低了分銷和貨運成本。部門營業利益率為 14.8%。

Moving to the BSG segment, we saw an improvement in salon demand trends as well as the benefit from expanded distribution and new brand innovation. Comparable sales were up 1%, while net sales were approximately flat on 20 fewer stores. On a constant currency basis, BSG e-commerce sales were $56 million representing 14% of segment net sales for the quarter.

轉向 BSG 細分市場，我們看到沙龍需求趨勢有所改善，以及擴大分銷和新品牌創新帶來的好處。可比銷售額成長了 1%，而淨銷售額在減少 20 家商店的情況下基本上持平。以固定匯率計算，BSG 電子商務銷售額為 5,600 萬美元，佔該季度部門淨銷售額的 14%。

The color category was up 4%, while care declined 1% of BSG on a wholesale basis. Adjusted gross margin at BSG declined 40 basis points year over year and came in at 39.4%. The decline was driven primarily by unfavorable fixed cost absorption and and shrink expense, partially offset by lower distribution and freight costs from supply chain efficiencies, as well as higher product margins. Segment operating margin was 10.9%.

顏色類別上漲了 4%，而護理類別 BSG 的批發量下降了 1%。BSG 調整後毛利率年減 40 個基點，為 39.4%。下降的主要原因是不利的固定成本吸收和費用縮減，部分被供應鏈效率降低的分銷和貨運成本以及更高的產品利潤所抵消。分部營業利益率為 10.9%。

Looking at the balance sheet and cash flow, we ended the first quarter with $121 million of cash and cash equivalents and no outstanding balance under our asset-based revolving line of credit. Our net debt leverage ratio stood at 2.2 times. Quarter end inventory was just north of $1 billion which is in line with our expectations and reflects a healthy overall position, including solid in-stock levels. We anticipate that inventory levels will hold relatively steady in the $1 billion range throughout the year. We generated positive cash flow from operations of $51 million, allowing us to repurchase $20 million of stock under our share repurchase plan.

從資產負債表和現金流量來看，第一季結束時，我們的現金和現金等價物為 1.21 億美元，基於資產的循環信貸額度下沒有未償餘額。我們的淨負債槓桿率為2.2倍。季末庫存略高於 10 億美元，這符合我們的預期，反映了健康的整體狀況，包括穩定的庫存水準。我們預計全年庫存水準將相對穩定地保持在 10 億美元的範圍內。我們從營運中產生了 5,100 萬美元的正現金流，使我們能夠根據股票回購計畫回購 2,000 萬美元的股票。

We're pleased with our start to fiscal 2024, and we are maintaining our full-year outlook as follows. We expect net sales and comparable sales to be approximately flat, reflecting 200 to 300 basis points of growth from our strategic initiatives and investments in new services as well as expanded distribution in the BSG segment, offset by our expectation that consumer spending will continue to be affected by macro headwinds.

我們對 2024 財年的開局感到滿意，並維持全年展望如下。我們預計淨銷售額和可比銷售額將大致持平，反映出我們的策略舉措和新服務投資以及BSG 部門擴大分銷帶來的200 至300 個基點的增長，但我們預計消費者支出將繼續增長，從而抵消了這一增長。受宏觀不利因素影響。

We expect growth margin to remain above 50%. Adjusted operating margin is expected to be at least 9%. Operating cash flow is expected to be at least $260 million, and capital expenditures are planned to be approximately $100 million dollars.

我們預計成長率將保持在50%以上。調整後的營業利潤率預計至少為 9%。營運現金流預計至少 2.6 億美元，資本支出計畫約為 1 億美元。

Our outlook is based on the following assumptions. Comparable sales performance is expected to improve in the second half of the year, reflecting positive drivers in both of our business segments. At the BSG, the lapping of hair care headwinds from the last several quarters will lead to easier comparisons in the second half of the year. Additionally, the second half is also expected to benefit from continued momentum in new brand innovation and expanded distribution opportunities.

我們的前景基於以下假設。預計下半年的可比銷售業績將有所改善，反映出我們兩個業務部門的正面推動力。在 BSG，過去幾季護髮行業的逆風將導致今年下半年的比較變得更加容易。此外，預計下半年也將受益於新品牌創新和擴大分銷機會的持續勢頭。

At Sally, we expect incremental improvement on the top line to be driven by the ramp of Walmart marketplace as well as the addition of Instacart and DoorDash, the expansion of license colorists on-demand, and benefits in Europe from pricing and new brand launches.

在 Sally，我們預計沃爾瑪市場的成長以及 Instacart 和 DoorDash 的增加、按需授權調色師的擴展以及歐洲從定價和新品牌發布中受益將推動營收的逐步改善。

Lastly, the $20 million of benefits under our Fuel for Growth initiative are expected to be realized in the second half of the year and essentially boost full-year operating margins by approximately 50 basis points. Looking at the second quarter, we expect net sales and comps to be flat to down 2%. This includes approximately $10 million of impact from traffic softness in early January, coinciding with persistent bad weather across most of the country. Importantly, during the fourth week of January, we saw this pressure moderate and trends returned to a normalized cadence.

最後，我們的成長燃料計畫下的 2,000 萬美元效益預計將在今年下半年實現，並將使全年營業利潤率大幅提高約 50 個基點。展望第二季度，我們預計淨銷售額和比較將持平或下降 2%。其中包括 1 月初交通疲軟造成的約 1,000 萬美元的影響，當時全國大部分地區持續出現惡劣天氣。重要的是，在一月份的第四周，我們看到這種壓力有所緩解，趨勢恢復到正常化的節奏。

As a reminder, Q2 is usually our lowest quarter from the total sales dollars perspective. We expect to see sequential improvement in gross margin rate in Q2, driven in large part by diminishing impact from unfavorable fixed cost absorption related to the projected timing of inventory purchases. Additionally, we anticipate that adjusted operating margin will be approximately 8%.

提醒一下，從總銷售額的角度來看，第二季通常是我們最低的季度。我們預計第二季毛利率將持續改善，這在很大程度上是由於與預期庫存採購時間相關的不利固定成本吸收的影響逐漸減弱。此外，我們預計調整後的營業利潤率約為 8%。

Lastly, it is reasonable to expect investments and share repurchases in the second quarter that is similar to our last quarter. We appreciate your time this morning.

最後，預計第二季的投資和股票回購與上季類似是合理的。我們非常感謝您今天早上的寶貴時間。

Now I'll ask the operator to open the call for Q&A.

現在我將要求接線員打開電話進行問答。

Thank you. (Operator Instructions) Korinne Wolfmeyer, Piper Sandler.

謝謝。（操作說明）Korinne Wolfmeyer、Piper Sandler。

First, I'd like to better understand how much of the comp this quarter was driven by performance in your owned brands versus national brands? And then, as well, how much -- can you break down how much was driven by price versus volume versus mix? And then going forward, how should we be thinking about that as well?

首先，我想更了解本季的業績有多少是由貴公司自有品牌與全國品牌的業績所推動的？然後，還有多少——你能細分一下有多少是由價格、數量和組合驅動的嗎？然後展望未來，我們該如何思考這個問題？

Let me start there. So in total, the comp performance that we delivered had about 200 basis points of goodness from our strategic initiatives overall. Within that, innovation was the largest driver. And to your question, there was contribution from both growth in our own brands and growth in our national brands. The national brands growth was pronounced on the BSG side where, of course, the own brands will be pronounced within Sally, but both were healthy portion of the business as we look to contribute to that comp base.

讓我從這裡開始。因此，總的來說，我們提供的比較績效比我們的整體策略計畫高出了約 200 個基點。其中，創新是最大的驅動力。對於你的問題，我們自有品牌的成長和國家品牌的成長都做出了貢獻。國家品牌的成長在 BSG 方面很明顯，當然，自有品牌將在 Sally 中得到明顯的體現，但這兩個品牌都是業務的健康部分，因為我們希望為該競爭基礎做出貢獻。

And then when you look at the mix of how that all came together, we really thought two different stories on the BSG side and the Sally side. On the BSG side, transactions were up. We saw nice customer accounts, particularly as we came to the end of the quarter coming through as stylists saw a modest uptick in demand, so that was really through incremental transactions. And ticket was slightly down, but great news that we saw the traffic of the customers coming into the store. And while we're watching that closely, we hope that it will persist, and we'll see that demand trend continue.

然後，當你看到這一切如何組合在一起時，我們確實想到了 BSG 方面和 Sally 方面的兩個不同的故事。BSG 方面，交易量有所上升。我們看到了不錯的客戶帳戶，特別是當我們到了季度末時，造型師看到需求略有上升，所以這實際上是透過增量交易實現的。門票略有下降，但好消息是我們看到顧客湧入商店。在我們密切關注的同時，我們希望這種情況能夠持續下去，並且我們將看到這種需求趨勢繼續下去。

On the Sally side of the house, transactions were down while ticket was up a bit. That continues to reflect consumer spending a bit closer to need, buying into their core categories. But we are pleased to see overall that we continue to see strength in color. We continue to see strength in texture and believe that we're holding share in the space that we're in, really facing a bit of consumer pressure on purchasing behavior.

在房子的莎莉一側，交易量下降，而門票價格略有上漲。這繼續反映出消費者的支出更接近需求，購買他們的核心類別。但我們很高興看到總體而言，我們繼續看到色彩的力量。我們繼續看到質地的優勢，並相信我們在我們所處的領域中佔有份額，確實面臨著消費者購買行為的一些壓力。

Very helpful. And then just on the gross margin line, can you walk through the puts and takes a little bit more? You gave a little bit of color in the prepared remarks, but want to better understand how much of the contraction was driven by shrink versus fixed cost absorption versus any other pressures you may be seeing? And then how much benefit were you getting from the higher product margin?

很有幫助。然後就毛利率而言，你能看一下看跌期權和多拿一點嗎？您在準備好的評論中給出了一些顏色，但想更好地了解收縮在多大程度上是由收縮、固定成本吸收以及您可能看到的任何其他壓力驅動的？那麼您從更高的產品利潤中獲得了多少好處呢？

So on the gross margin line, we're still really pleased delivering above the 50% mark and strong gross margins there. We did see about 60 basis points of pressure in Q1. There were a handful of puts and takes. So on the positive side, as we continue to focus on driving supply chain efficiencies, we continue to see goodness coming out there with lower distribution and freight costs.

因此，在毛利率方面，我們仍然非常高興能夠實現 50% 以上的目標，並且毛利率強勁。我們確實在第一季看到了約 60 個基點的壓力。有一些看跌期權。因此，從積極的一面來看，隨著我們繼續專注於提高供應鏈效率，我們繼續看到配送和貨運成本降低的好處。

As offsets, there were few, but we did have a greater percentage of lower margin BSG sales in the quarter or a greater percentage of the BSG sales. We did incur some unfavorable fixed cost absorption. That's really due to timing. That ebbs and flows throughout the year. We expect to see that come back and diminish as we get into Q2.

作為補償，數量很少，但本季我們確實有更大比例的低利潤 BSG 銷售，或更大比例的 BSG 銷售。我們確實遭受了一些不利的固定成本吸收。這確實是由於時機的原因。全年都會有潮起潮落。我們預計，當進入第二季度時，這種情況將會回來並減少。

And then lastly, we did have some shrink, I would say that's the most minor part. It was a minor headwind, and that was really in our BSG business.

最後，我們確實有一些心理醫生，我想說這是最次要的部分。這是一個小小的逆風，而這確實是我們 BSG 業務的逆風。

Very helpful.

很有幫助。

Our next question is from Oliver Chen from TD Cowen. Please go ahead. Oliver Chen, your line is open. We'll move to Ashley Helgans from Jefferies. Please go ahead.

我們的下一個問題來自 TD Cowen 的 Oliver Chen。請繼續。奧利佛陳，您的線已接通。我們將從 Jefferies 搬到 Ashley Helgans。請繼續。

Hey, good morning. Thanks for taking our question. And I'm just curious if you could talk about how traffic trended throughout the quarter. And then we're also curious if you're seeing any new emerging trends. Bonding has been so popular over the last couple of years. Is there's anything else in hair care that's emerging on a trend level?

嗨，早安。感謝您提出我們的問題。我很好奇您能否談談整個季度的流量趨勢。我們也很好奇您是否看到了任何新的趨勢。在過去的幾年裡，黏合非常流行。護髮領域還有哪些正在流行的趨勢嗎？

Yeah. Traffic was relatively stable throughout the quarter. If we had to pick anything, we saw a little bit softer October and a little bit softer -- but a little bit stronger December with December really supported by the BSG side of the business. But we didn't see any big changes month over month as we went through the quarter overall.

是的。整個季度的流量相對穩定。如果我們必須選擇什麼的話，我們會發現 10 月和 12 月都稍顯疲軟，但 12 月確實得到了 BSG 業務的支持。但在整個季度中，我們並沒有看到每個月有任何重大變化。

And in the purpose of trends, trends remained very consistent with what we've seen. On the hair care front, it really is about about bonding and about things that are efficacy in terms of improving the look and feel of your hair and the health of your hair overall. We see a little bit more interest in scalp care that goes right along with that type of trend.

就趨勢而言，趨勢與我們所看到的非常一致。在頭髮護理方面，它實際上是關於粘合，以及關於改善頭髮的外觀和感覺以及頭髮整體健康的功效。我們看到人們對頭皮護理有了更多的興趣，這與這種趨勢一致。

And on the color front, when we think about it, the things that are ticking, we continue to see glossing important. We continue to see express important because that lets stylists turn their chairs a bit more often. So no major shift in trend but good, healthy, continued business across the board there.

在色彩方面，當我們思考那些正在發生的事情時，我們仍然認為光澤很重要。我們仍然認為表達很重要，因為這可以讓造型師更頻繁地轉動他們的椅子。因此，趨勢沒有重大轉變，但整體業務良好、健康、持續。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

My first question on consumer spending, the consumer being a little soft there, there was a time a while ago where this business, at least the Sally side, benefited from trade down while the consumer was under pressure. Can you talk about -- are you seeing that because it doesn't seem to be the case on a sequential basis, but do you see customers from different cohorts or people opting not to get serviced that are coming in and doing it themselves?

我關於消費者支出的第一個問題，消費者那裡有點疲軟，不久前，這項業務，至少是莎莉方面，在消費者面臨壓力時從貿易下降中受益。您能談談嗎？您是否看到了這一點，因為情況似乎並非按順序排列，但您是否看到來自不同群體的客戶或選擇不接受服務而自己進來做服務的人？

Overall, I think what we'd say is we have a very stable business. I mean, the businesses is pretty resistant to to some of the consumer demand trends that ebb and flow just because we can offset BSG and the Sally business to some extent. So when we see costs on our side of the world down 2%, we think that's a pretty good performance in a challenged macroenvironment. When we look within that, what we're seeing for customers is we see the particular trade down or increased frugality, no surprise, in the lower income, particularly below the $50,000 mark, where these folks are feeling outside pressure.

總的來說，我認為我們的業務非常穩定。我的意思是，這些業務對某些消長的消費者需求趨勢具有很強的抵抗力，因為我們可以在一定程度上抵消 BSG 和 Sally 業務的影響。因此，當我們看到我們這邊的成本下降 2% 時，我們認為在充滿挑戰的宏觀環境中這是一個相當不錯的表現。當我們審視這一點時，我們為客戶看到的是，我們看到收入下降，特別是低於 50,000 美元大關，這些人感受到了外部壓力，從而減少了交易或更加節儉，這並不奇怪。

The build-up of all the inflation over time, we're seeing that come through. And we're also seeing them with a higher mix to credit card and buy now pay later for what they are buying, exhibiting that stress. But they are still coming in. They are still shopping. They are just very frugal about buying to need, and buying to need means, I buy color because I do touch up my roots, and I want to keep doing that. What I'm probably not going to do is be buying that styling tool, that extra hairbrush, the things that would be more splurges at this point in time.

隨著時間的推移，所有通貨膨脹的積累，我們都看到了這一點。我們也看到他們更多地使用信用卡和先買後付的方式，這也反映出了這種壓力。但他們仍然進來。他們還在購物。他們只是非常節儉地購買需要的東西，而購買需要的東西意味著，我購買顏色是因為我確實觸及了我的根源，而且我想繼續這樣做。我可能不會做的是購買造型工具，額外的髮刷，這些在這個時候會更揮霍的東西。

So we see a little bit of trade down and around. But with the value point that we have with many of our own brands as well as our national brands in our stores, we're pretty reasonably priced to begin with in that mix of what's coming in. So I'd say behavior pretty consistent with what we've seen and, if anything, just see a little bit more stress in the way people are purchasing with that mix towards credit quality and buy now pay later.

所以我們看到了一些向下和左右的貿易。但考慮到我們在商店中擁有的許多自有品牌以及國內品牌的價值點，我們在即將推出的產品組合中的定價相當合理。因此，我想說，這種行為與我們所看到的情況非常一致，如果有什麼不同的話，那就是人們在購買信用品質和先買後付的方式時會面臨更大的壓力。

Okay. A follow-up on BSG. The press release is that it lifted first expanded distribution as the factor for improvement. At the end, there was improving salon demand trend. So can you talk about those two? Goldwell, what you bought, does that enter into the comp base or that stays out of it for a while? And then just related to it, the weather impact, did that impact BSG and Sally proportionally in January or was it more Sally?

好的。BSG 的後續行動。新聞稿稱，它取消了首次擴大分銷作為改進因素。最終，沙龍需求呈現改善趨勢。那麼您能談談這兩個人嗎？Goldwell，你買的東西，是進入了比較基礎還是暫時不在其中？與此相關的是，天氣影響在一月對 BSG 和 Sally 的影響是否成比例，還是對 Sally 的影響更大？

So overall, when we think about what drove the BSG business, there were three key factors overall, so innovation, expanded distribution, and improving salon demand trends, I'd say, in that order. With innovation, very broadly, Amika, Wella's Ultimate Repair, Color Wow, Moroccan Oil are places where we saw our customers lean in into that mix. And in particular, when we have expanded distribution in a few of those brands with Color Wow and Moroccan Oil, that certainly helped.

因此，總的來說，當我們思考推動 BSG 業務的因素時，總體而言，有三個關鍵因素，即創新、擴大分銷和改善沙龍需求趨勢，我想說，按這個順序。憑藉廣泛的創新，Amika、Wella's Ultimate Repair、Color Wow、Moroccan Oil 等我們看到我們的客戶傾向於採用這種組合。特別是，當我們擴大了其中一些品牌的 Color Wow 和 Moroccan Oil 的分銷時，這無疑有所幫助。

In the Goldwell portion of the business, part of that acquisition goes into comp and part of it does not. So the new stores that came with the acquisition do not go into the comp, but the full service and rest of the business does go into comp. So it's a bit split there, but we had expected that to be a $10 million to $15 million build for the entire year. And we're seeing that perform in line with expectations, so we're really pleased with how that has come to bear.

在 Goldwell 的業務部分，收購的一部分進入了補償，另一部分則沒有。因此，收購帶來的新商店不會納入補償範圍，但全方位服務和其餘業務確實會納入補償範圍。所以這方面有些分歧，但我們預計全年建設費用為 1000 萬至 1500 萬美元。我們看到其表現符合預期，因此我們對其結果感到非常滿意。

And then finally, the improving salon demand trend, what we're really seeing that in as we saw traffic pick up and coming to the stores and shop the intercepts with customers just saying, I'm just a little busier. And that was great for us to see coming in and feeling that as part of the mix. And then if you could remind me what your second part of your question was.

最後，沙龍需求趨勢的改善，我們真正看到的是，當我們看到客流量增加並來到商店和購物時，顧客只是說，我只是有點忙。看到我們的加入並感受到它是混合的一部分，這對我們來說真是太棒了。然後你能提醒我你問題的第二部分是什麼嗎？

It was the weather where you talked about some softness, did that affect Sally and BSG?

那是天氣，你談到了一些柔軟，這對Sally和BSG有影響嗎？

Yeah. So the softness that we saw in the early part of January tied to weather, the great news is it really has turned around at the end of January. And as we launch into February today, we believe that that world will continue. It was predominantly Sally, but it was across both businesses. So if I have to split it, it was 60% Sally, 30% BSG, give or take, 40% BSG if we look at it that way. But it did affect both businesses.

是的。因此，我們在一月初看到的疲軟與天氣有關，好消息是，情況在一月底確實出現了好轉。當我們今天進入二月時，我們相信這個世界將繼續下去。主要是莎莉，但也涉及兩個業務。所以如果我必須分割它，那就是 60% Sally，30% BSG，給予或接受，如果我們這樣看的話，40% BSG。但這確實影響了兩家公司的業務。

Makes sense. Okay, thanks. Be well.

說得通。好的謝謝。祝你一切順利。

Olivia Tong, Raymond James.

唐奧立，雷蒙德詹姆斯。

You mentioned improving salon demand trends at BSG, could you just expand on what's driving that? You did leave the full-year comp outlook unchanged, but given that BSG was a bit better than expected, could you just talk about how that influences your full-year expectations to start?

您提到了 BSG 沙龍需求趨勢的改善，您能詳細說明一下推動這一趨勢的因素嗎？您確實保持了全年業績展望不變，但考慮到 BSG 的業績略好於預期，您能否談談這對您的全年預期有何影響？

Yeah. When we talked about seeing and improving salon demand trends, we talked about it being modest improvement in demand trends. And the way that we understand that is really just watching the purchase behavior of our stylists as they come into our stores, as they transact with us online and how they talk about their businesses. The way they phrased it was, coming into the holiday season, they saw a bit more normalcy and people wanting to come in ahead of the holiday, refresh their look, kind of filling their chair to a bit more extent than they had been in the earlier period of the year.

是的。當我們談論觀察和改善沙龍需求趨勢時，我們談論的是需求趨勢的適度改善。我們理解這一點的方式實際上只是觀察我們的造型師進入我們商店時的購買行為，當他們在網上與我們進行交易時，以及他們如何談論他們的業務。用他們的話來說，進入假期季節，他們看到了更多的常態，人們想要在假期前進來，煥然一新，讓椅子上的座位比以前多一些。今年早些時候。

So you are encouraged that we've seen a little bit of that uptick for our stylists and their salon business, but it's a really knew trend line. So we're not really making an expectation that that's going to have further growth or continuation as we look to our projections for the remainder of the year. We'll certainly watch it and continue to react as we see that come through. Overall, in holding our guidance, the thing that I would come back to is we really performed in line with our expectations in the first quarter.

因此，我們看到我們的造型師及其沙龍業務有所上升，這讓您感到鼓舞，但這是一條眾所周知的趨勢線。因此，當我們展望今年剩餘時間的預測時，我們並沒有真正期望這種情況會進一步增長或持續。我們一定會關注它，並在看到它發生時繼續做出反應。總的來說，在維持我們的指導方針的情況下，我要回想的是我們第一季的表現確實符合我們的預期。

As we look to the second quarter, we did this unusually persistent weather very early in January to start things off. And overall retail traffic was certainly pressured through that point. It lasted long enough that in our minds, we're not betting that we are going to recoup a bit of the softness that we saw in those early couple of weeks but rather get back on the rest of the trend for the quarter has really happened at the last week of January and going forward.

當我們展望第二季時，我們在一月初就遇到了這種異常持續的天氣，以此作為開始。到那時，整體零售流量肯定會受到壓力。它持續了足夠長的時間，在我們看來，我們不會打賭我們會恢復一些我們在前幾週看到的疲軟狀態，而是回到本季度的其餘趨勢確實發生了一月的最後一周以及未來。

So our guide for Q2 really reflects the fact that we think that that was a pocket of air and a little bit of lost sales that came from that, but the rest of the business underneath that quite healthy. So down 0% to 2% on comp sales for the quarter reflects that bit of early January pressure. But we believe that gross margins will continue to improve from Q1 to Q2 as Marlo had discussed in an earlier question.

因此，我們第二季的指南確實反映了這樣一個事實，即我們認為這是一個空洞，並因此造成了一些銷售損失，但背後的其他業務相當健康。因此，本季公司銷售額下降 0% 到 2% 反映了 1 月初的壓力。但我們相信，正如 Marlo 在先前的問題中所討論的那樣，第一季到第二季的毛利率將繼續提高。

And then we're really well prepared to ramp into the back half of the year. We also outlined that on the call, but we think about the strength of BSG that will find a lack of the haircare headwinds from one brand from last year. We're also continuing to be set up for this momentum with new brand innovation and expanded distribution.

然後我們就為今年下半年的發展做好了充分準備。我們也在電話會議上概述了這一點，但我們考慮到 BSG 的實力，它會發現去年某個品牌在護髮方面遇到的阻力。我們也將繼續透過新的品牌創新和擴大分銷來保持這一勢頭。

And then Sally, as we continue to embark in the back half of the year with the growth that we see in marketplaces coming through, our licensed colorists on-demand, and then some improvements in Europe as well, where we've been working hard on pricing and new brand launches that we think are going to elevate the second half of the year. So all in all, the year is unfolding generally the way that we expected it to. And we do expect the second half of the year to be a bit stronger on the top line than what we see for the first half of the year but pleased with our start.

然後莎莉，隨著我們在今年下半年繼續著手，我們看到市場的成長，我們的授權調色師按需提供，然後歐洲也有一些改進，我們一直在努力工作關於定價和新品牌發布，我們認為這將提升今年下半年的表現。總而言之，這一年的進展總體上符合我們的預期。我們確實預計今年下半年的營收將比上半年強一些，但對我們的開局感到滿意。

That's very helpful. So if I could just summarize, it sounds like Q1, more or less in line, maybe a touch better. Q2, obviously impacted by the weather, but you don't expect that to get back. And then, second half, more or less no change in expectation relative to your expectations going into the December quarter?

這非常有幫助。因此，如果我可以簡單總結一下，聽起來就像 Q1，或多或少符合要求，也許更好一些。第二季度，顯然受到天氣的影響，但你預計這種影響不會恢復。然後，下半年，相對於您進入 12 月季度的預期，預期或多或少沒有變化？

Fair enough.

很公平。

Got it. Okay. And then just my -- my next question is around the Fuel for Growth program. You talked a little bit about incremental savings, could you talk about where that savings is coming from? Any new bucket or just as you continue that program, you're just seeing a little bit better success rate with achieving savings in the existing bucket.

知道了。好的。我的下一個問題是關於成長燃料計劃的。您談到了增量節省，您能談談這些節省來自哪裡嗎？任何新的儲存桶或當您繼續該計劃時，您都會看到在現有儲存桶中實現節省的成功率更高一些。

Yeah. So as we called out last quarter, we were really in our early stages of our Fuel for Growth work. We had identified $20 million of benefits that we expect to flow through 2024. Most of that is back half loaded. And we talked about that being weighted 75% SG&A, 25% cost of goods.

是的。因此，正如我們上個季度所指出的那樣，我們確實處於成長燃料工作的早期階段。我們已確定預計到 2024 年將帶來 2,000 萬美元的收益。其中大部分是半負載的。我們談到，SG&A 加權為 75%，商品成本加權 25%。

We did talk about our partnership with an external advisor. We have completed that assessment. And now we believe we're on a path to identifying another $50 million that we can see flow through fiscal 2025. And then cumulative through the program, get to $120 million run rate as we get into 2026.

我們確實討論了與外部顧問的合作關係。我們已經完成了該評估。現在，我們相信我們正在確定另外 5000 萬美元的資金，我們可以在 2025 財年看到這些資金的流動。然後透過該計劃累積，到 2026 年運行率將達到 1.2 億美元。

And where we see that coming from, on the early stages, it's programs that we were testing in our supply chain like our biweekly shipping frequency. We are approaching 80% of the fleet for Sally. We're shy of that on BSG. Our goal is to get to around 85% across both banners, and we're on path for that for this year.

我們看到，在早期階段，這是我們在供應鏈中測試的項目，例如我們的每兩週一次的發貨頻率。我們正在接近 80% 的機隊尋找莎莉。我們在 BSG 上對此感到害羞。我們的目標是兩個橫幅的使用率都達到 85% 左右，今年我們正朝著這個目標邁進。

But as we look forward, we're seeing greater opportunities within our our merchandising and vendor negotiations and relationships. We've got a goods not for resale opportunities within our nontrade payables. We see automation. We see outsourcing. So we see a variety of programs.

但展望未來，我們在銷售和供應商談判及關係中看到了更多的機會。我們的非貿易應付帳款中有一種不可轉售的商品。我們看到自動化。我們看到外包。所以我們看到了各種各樣的節目。

But as we look forward and we start to see where that falls, more so in the merchandising and supply chain areas, we'll get more benefits within gross margin. So you'll see that 75%, 25% start to balance out a bit as we get into the future years. But we're pretty excited about the program, and we're off to a great start.

但當我們展望未來時，我們開始看到下降的地方，尤其是在銷售和供應鏈領域，我們將在毛利率範圍內獲得更多好處。因此，隨著我們進入未來幾年，您會發現 75%、25% 開始有所平衡。但我們對該計劃感到非常興奮，我們有了一個良好的開始。

Great. Best of luck.

偉大的。祝你好運。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

We were curious about the promotional environment now that you're seeing in terms of the landscape and how that's interplaying with how you're thinking about pricing. Also, as we look forward, do you expect volatility and traffic? Just curious about underlying trends there. And then finally, as we model inventory, I would love views on how you're planning inventory relative to sales.

我們對您所看到的促銷環境以及它與您對定價的看法如何相互作用感到好奇。另外，當我們展望未來時，您預期會出現波動和流量嗎？只是對那裡的潛在趨勢感到好奇。最後，當我們對庫存進行建模時，我希望了解您如何規劃相對於銷售的庫存。

So I'll start with the point on promotional landscape. It remains pretty consistent with how we described it last quarter. Value remains important for both of our Sally customers and our BSG stylists. On the BSG stylist point, we actually see a little bit higher promotional activity in play consistent with what we saw last quarter as compared to last year, and a lot of that is that we do see that unit demand pull through when that promotional activity happens. So we have that built into our model, like I said, nothing particularly outsized in terms of trend, but we do see the stylists there respond a bit better to promotion.

我將從促銷環境開始。它與我們上季的描述非常一致。對於我們的 Sally 客戶和 BSG 造型師來說，價值仍然很重要。在 BSG 造型師方面，我們實際上看到與去年相比，上季度的促銷活動有所增加，其中很大一部分是我們確實看到促銷活動發生時單位需求的增長。因此，正如我所說，我們將其內建到我們的模型中，就趨勢而言，沒有什麼特別大的，但我們確實看到那裡的造型師對促銷的反應更好一些。

On the Sally side, I would call it a bit steady Eddy. At the end of the day, customers are just being frugal overall with their dollars. So with or without a promotion, we don't see meaningful changes in traffic coming into the store. And in turn, we are moderating that and ensuring that we're doing the right thing that will drive value for us overall.

在莎莉方面，我會稱之為有點穩定的艾迪。歸根究底，客戶整體而言只是在花錢方面比較節儉。因此，無論是否進行促銷，我們都沒有看到商店的流量有有意義的變化。反過來，我們正在調節這一點，並確保我們正在做正確的事情，從而為我們整體帶來價值。

I think importantly, in light of the landscape that's out there on both sides of the business, you can expect that we'll remain conservative on pricing. The good news is we're seeing fewer price increases come through for our vendors as commodity costs and other things have moderated. But importantly, we look right now and would not expect to be flowing through any significant increases that will drive AUR in the near term in light of the macro environment. So not much different than what we saw last quarter but certainly very value-oriented consumer on both sides of our business today.

我認為重要的是，鑑於業務雙方的情況，您可以預期我們將在定價上保持保守。好消息是，隨著商品成本和其他因素的緩和，我們的供應商的價格上漲幅度減少。但重要的是，我們現在就看，鑑於宏觀環境，預計短期內 AUR 不會出現任何大幅成長。因此，與我們上個季度看到的情況沒有太大不同，但我們今天業務雙方的消費者肯定都是以價值為導向的。

In terms of volatility and traffic, we definitely see -- we saw volatility in the quarter, but I'd call it moderate volatility up and down. I think we've been seeing that now since inflation really started to tick up, which we're now probably six quarters in to see that impact where when people need to come to buy for for need for an event or something like that, you're going to see a little bit more strength. And then in the down periods, a little bit less traffic come through. I will expect to see that, but it's not wild swings. It's just customers are really tailoring their purchase habits as aligned with needs.

就波動性和流量而言，我們確實看到了本季度的波動性，但我將其稱為適度的上下波動。我認為，自從通貨膨脹真正開始上升以來，我們已經看到了這一點，我們現在可能需要六個季度才能看到這種影響，當人們需要為活動或類似活動的需要而購買時，你將會看到更多的力量。然後在低迷時期，流量會減少一些。我預計會看到這種情況，但這並不是劇烈的波動。只是客戶真正根據需求調整了他們的購買習慣。

And then your final question was on inventory. I'll kick that one over to Marlo.

最後一個問題是關於庫存的。我會把那個踢給馬洛。

Yeah. With inventory, we expect it to run really in the $1 billion range. As you look at the quarterly cadence, fairly level loaded, a little bit of build as we progress into the year and then drop back down into the $1 billion range. One thing to keep in mind on inventory, we are on a weighted average cost method, so we've got a bit of a lag to those vendor price increases that we had seen previously. Those are still making their way through the process, but we continue to maintain improved levels of unit inventory.

是的。就庫存而言，我們預計它實際上會在 10 億美元範圍內運行。當你看一下季度節奏時，你會發現，隨著我們進入今年，負載相當均衡，有一點建設，然後又回落到 10 億美元的範圍。關於庫存要記住的一件事是，我們採用加權平均成本法，因此我們對之前看到的供應商價格上漲有一點滯後。這些仍在進行中，但我們繼續保持單位庫存水準的提高。

More units are down to where where you see there level or increases. That's all due to the vendor cost increases making their way through the system. And we are hitting our unit weeks of supply targets, and our in-stock levels are at really healthy levels.

更多單位下降到您看到的水平或增加的位置。這都是由於系統中供應商成本的增加所造成的。我們正在實現單位週的供應目標，並且我們的庫存水準處於非常健康的水平。

One follow-up. One on your competitive advantages of the company is your own brand portfolio. What are highlights of opportunities do you see there for innovation and change?

一項後續行動。公司的競爭優勢之一是您自己的品牌組合。您認為創新和變革的機會有哪些亮點？

Yeah, spot on. We're very excited about the own brand portfolio. Of late, the biggest change that we had made with the launch of bondbar and the extension of bondbar from care into color. We're seeing good customer response there with a very modern brand bringing in new customers when we get that out there and in front of them. Innovation come forward is going to follow a similar track as being very aligned with maybe a younger consumer trend around desire for more natural products free-from products, certainly good for the environment spaces where we think we can play there particularly in the care side, and we'll talk about that.

是的，恰到好處。我們對自有品牌組合感到非常興奮。最近，我們做出的最大改變是推出 bondbar 並將 bondbar 從護理擴展到顏色。當我們將一個非常現代的品牌推出並擺在他們面前時，我們看到了良好的客戶反應，並帶來了新客戶。創新的出現將遵循類似的軌道，因為可能與年輕的消費者趨勢非常一致，人們渴望更天然的產品，不含產品，這當然有利於我們認為我們可以在那裡發揮作用的環境空間，特別是在護理方面，我們會討論這個。

And all things about how you can be more mindful as you shop coming through. You'll also see us continue to expand things like ION into a sunscreen for your hair and places where people are looking once again from more solution orientation that you'll see us push on as well. So I'd really focus on the dial-up on mindful natural items coming through as well as continued expansion of our bondbar business, and then problem solving tied to our ION brand.

以及有關如何在購物時更加謹慎的所有資訊。您還將看到我們繼續將 ION 等產品擴展為頭髮防曬霜，以及人們再次從更多解決方案方向尋找的地方，您也會看到我們正在推動這些解決方案。因此，我真的會專注於開發純天然產品，以及不斷擴展我們的 bondbar 業務，然後解決與我們的 ION 品牌相關的問題。

Very helpful. Best regards.

很有幫助。此致。

Linda Bolton-Weiser, D.A. Davidson.

琳達·博爾頓·韋瑟，D.A.戴維森。

I was just curious about, you've been talking about your experimentation and pilot studies with these other store concepts. And I was wondering if you could quantify the costs related to those pilot tests in this fiscal year? And then, sorry if I missed it, but did you give any more color about your plans to expand the value concept, like in FY25, do you think you will open more of those stores?

我只是好奇，你一直在談論你對其他商店概念的實驗和試點研究。我想知道您是否可以量化本財年與這些試點測試相關的成本？然後，抱歉，如果我錯過了，但是您是否對擴展價值概念的計劃進行了更多說明，例如在 2025 財年，您認為您會開設更多這樣的商店嗎？

Yeah, I appreciate the question. When I think about the concept initiatives that we're piloting right now, I'd really focus on two key areas. One is the Studio By Sally concept, and the other is our value initiative with Happy Beauty Co. So I'll start with it with Happy Beauty Co or maybe I'll back up one step.

是的，我很欣賞這個問題。當我想到我們現在正在試驗的概念舉措時，我真的會專注於兩個關鍵領域。一個是 Studio By Sally 概念，另一個是我們與 Happy Beauty Co 的價值倡議。所以我將從 Happy Beauty Co 開始，或者也許我會後退一步。

You first asked about financial impact of this year. It's quite modest financial impact for what we've stood up this year, both in the remodel or relocation costs of opening the studio stores or in the case of Happy Beauty, it's 10 stores that we put into play last year, and this year is really about operating them. So no material impact to the bottom line from either initiative this year.

您首先詢問了今年的財務影響。對於我們今年所面臨的財務影響來說，無論是開設工作室商店的改造或搬遷成本，還是以快樂美容為例，我們去年開設了 10 家商店，今年是真正關於操作它們。因此，今年這兩項舉措都沒有對淨利潤產生重大影響。

But if I look at the opportunity set, Happy Beauty Co, we have 10 stores up and running. We've been gaining traction in the first six months since our launch. And we're continuing to build awareness and traffic. And with 10 stores, we're really doing that grassroots social media coming through. We were very pleased with what we saw through the holiday season.

但如果我看一下機會集，Happy Beauty Co，我們有 10 家商店正在運作。自推出以來的前六個月內，我們一直受到關注。我們正在繼續提高知名度和流量。透過 10 家商店，我們真正做到了草根社群媒體的普及。我們對假期期間所看到的情況感到非常滿意。

We thought that the brand was very well positioned for gifting, and that's what we saw. And our teams executed quite well. We're seeing ticket over $25, then UPT around 5. December and the holiday shopping weeks, we saw stronger performance than that and supporting that idea that is gifting.

我們認為該品牌非常適合送禮，這就是我們所看到的。我們的團隊執行得相當好。我們看到票價超過 25 美元，然後 UPT 大約 5 美元。12 月和假日購物週，我們看到了比這更強勁的表現，並支持了送禮的想法。

So we're carrying through those learnings as we consider additional openings. More to come on future calls about a path there, but we remain excited about the potential and believe that if we see some of the metrics continue to perform as they could perform, we could be pushing an opportunity for over 500 stores over the long term where the real start of that expansion would be going into next year rather than meaningfully more this year.

因此，我們在考慮其他空缺職位時正在總結這些經驗教訓。未來還會有更多關於這條路徑的電話會議，但我們仍然對潛力感到興奮，並相信，如果我們看到一些指標繼續發揮應有的作用，從長遠來看，我們可能會為500 多家商店提供機會真正的擴張將在明年開始，而不是今年才有意義。

And then on the studio side, we have six stores open. We're really reading performance there and understanding what they deliver to us. As you'll remember, these stores have the opportunity for people to participate in the salon environment with a DIY salon. But in addition, we made changes to the stores in terms of look and feel, so graphics, lower gondolas, better sightlines, much stronger navigation, difference in how we think about education and finance throughout the stores overall.

然後在工作室方面，我們開設了六家商店。我們確實在閱讀那裡的表現並了解他們為我們帶來了什麼。您會記得，這些商店讓人們有機會參與 DIY 沙龍的沙龍環境。但除此之外，我們還對商店的外觀和感覺進行了更改，例如圖形、更低的吊籃、更好的視線、更強的導航，以及我們對整個商店的教育和金融的看法的不同。

We're seeing very positive reaction to what the store experience is delivering to a customer and how they feel about the brand having gone into those stores. So we think that we're learning a lot there that can just inform overall how we think about relocations and remodels within the Sally fleet. And the studio is giving us a great opportunity to understand how people use our products, what their pain points are, how we can help them. And we're continuing to build on those learnings as well.

我們看到，人們對商店體驗為顧客帶來的體驗以及他們對進入這些商店的品牌的感受做出了非常積極的反應。因此，我們認為我們在那裡學到了很多東西，可以總體上告訴我們如何考慮薩莉機隊內的搬遷和改造。工作室為我們提供了一個很好的機會來了解人們如何使用我們的產品、他們的痛點是什麼以及我們如何幫助他們。我們也將繼續以這些經驗為基礎。

We have the potential as we go through the balance of the year to get a few dozen more of those out there if we see the potential of being what we'd like it to see. So on both cases, really seeing them come true. They are pilot, so they are not meaningful contributors to 2024. But we would look and hope that they will all be able to be great contributors as we look to the longer term.

如果我們看到了我們希望看到的潛力，那麼在今年餘下的時間裡，我們有潛力再推出幾十個這樣的產品。所以在這兩種情況下，真的看到它們成真了。它們是試點項目，因此對 2024 年不會做出有意義的貢獻。但從長遠來看，我們希望他們都能成為偉大的貢獻者。

Thank you, and there are no further questions in queue.

謝謝，隊列中沒有其他問題了。

Thank you all for joining us today, and thank you to all our associates around the world. We appreciate what you do every day to serve our customers. And to all of our investors, thank you for dialing in this morning and hearing more of our story, and we look forward to keeping you posted in the coming quarters.

感謝大家今天加入我們，也感謝我們在世界各地的所有同事。我們感謝您每天為服務我們的客戶所做的一切。對於我們所有的投資者，感謝您今天早上撥打我們的電話並聽到更多我們的故事，我們期待在未來幾個季度向您通報最新情況。

Thank you and, ladies and gentlemen, that does conclude our conference for today. Thans for your participation and for using AT&T teleconference. You may now disconnect.

謝謝你們，女士們先生們，我們今天的會議到此結束。感謝您的參與和使用 AT&T 電話會議。您現在可以斷開連線。