Shoe Carnival Inc (SCVL) 2025 Q2 法說會逐字稿

Good morning, and welcome to Shoe Carnival's second-quarter 2025 conference call. Today's conference call is being recorded and is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited.

早安，歡迎參加鞋類嘉年華2025年第二季電話會議。今天的電話會議正在錄音，同時也會透過網路直播。嚴禁以任何形式複製或轉播本次通話的任何部分。

Management's remarks today may contain forward-looking statements that involve a number of risk factors. These risk factors could cause the company's actual results to be materially different from those projected in such statements. Forward-looking statements should also be considered in conjunction with the discussion of risk factors included in the company's SEC filings and today's earnings press release.

管理階層今天的演講可能包含涉及許多風險因素的前瞻性陳述。這些風險因素可能導致公司的實際業績與此類聲明中預測的業績有重大差異。前瞻性陳述也應與公司向美國證券交易委員會提交的文件和今天發布的盈利新聞稿中包含的風險因素討論結合起來考慮。

Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. The company disclaims any obligation to update any of the risk factors or to publicly announce any revisions to the forward-looking statements discussed on today's conference call or contained in today's press release to reflect future events or developments.

投資人請注意，不要過度依賴這些前瞻性陳述，這些陳述僅代表截至今日的觀點。公司聲明，沒有義務更新任何風險因素，也沒有義務公開宣布對今天電話會議中討論的或今天新聞稿中包含的前瞻性聲明進行任何修訂，以反映未來的事件或發展。

I will now turn the conference over to Mr. Mark Worden, President and CEO of Shoe Carnival, for opening remarks. Mr. Worden, you may begin.

現在我將把會議交給鞋業嘉年華總裁兼執行長馬克沃登先生，請他致開幕詞。沃登先生，您可以開始了。

Good morning, everyone, and thank you for joining us today for Shoe Carnival's second-quarter 2025 earnings conference call. Joining me on today's call are Patrick Edwards, Chief Financial Officer; and Tanya Gordon, Chief Merchandising Officer. Our second quarter results demonstrate meaningful progress on our corporate strategy. We beat earnings consensus by over 20% and expanded gross margins 270 basis points to 38.8%, our strongest Q2 margin in years.

各位早安，感謝各位今天參加鞋業嘉年華2025年第二季財報電話會議。今天與我一起參加電話會議的有財務長帕特里克·愛德華茲和首席商品官坦尼婭·戈登。第二季業績表明，我們的企業策略取得了實質進展。我們的獲利超出市場預期 20% 以上，毛利率提高了 270 個基點至 38.8%，這是我們多年來第二季最高的毛利率。

Our rebanner strategy is exceeding targets. EPS declined year-over-year from our planned rebanner investments, as expected, but margins expanded faster than planned, driving our strong earnings beat for the quarter. Since our last call, we've completed our back-to-school season, the period that defines our year. Fiscal August represents less than 8% of our days, but drives approximately 25% of our annual profits.

我們的重新投放廣告策略超額完成了目標。正如預期的那樣，由於我們計劃的品牌重塑投資，每股收益同比下降，但利潤率的成長速度超過預期，推動了我們本季強勁的獲利成長。自上次通話以來，我們已經結束了返校季，這段時期定義了我們一年的走向。8 月的財政年度僅占我們全年天數的不到 8%，但卻貢獻了我們全年約 25% 的利潤。

As we moved into back-to-school in August, we achieved a significant milestone. The company returned to positive comparable sales growth for this must-win period. Shoe Station grew sales high single digits and expanded margins. Shoe Carnival delivered positive children's category comp sales growth and margin growth. Rogan's expanded both comparable sales and margins. Every banner stepped up when it mattered most.

八月開學季到來之際，我們取得了一項重要的里程碑成就。在這個必須取勝的時期，公司恢復了同店銷售額的正成長。鞋站銷售額實現了接近兩位數的成長，利潤率也得到了提升。鞋類嘉年華實現了童裝品類同店銷售額和利潤率的雙重成長。Rogan 的同店銷售額和利潤率均有所成長。每面旗幟都在最關鍵的時刻挺身而出。

Let me walk through what drove these results and why it matters for our future. Three strategic decisions shaped our quarter in back-to-school success. First, we prioritized margin dollars over pursuing lower-quality, lower-profit sales. Second, we invested in inventory depth to improve availability for back-to-school. Third, we continued investing in our rebanner program despite market uncertainty. These choices are paying off. Q2 gross margins reached 38.8%. That 270-basis point expansion came from disciplined pricing, improved mix and better inventory availability, not from deep discounting.

讓我來解釋一下造成這些結果的原因，以及這對我們未來為何如此重要。三個策略決策決定了我們本季返校季的成功。首先，我們優先考慮利潤率，而不是追求低品質、低利潤的銷售。其次，我們增加了庫存投入，以提高返校季的供貨能力。第三，儘管市場存在不確定性，我們仍繼續投資於我們的品牌重塑計畫。這些選擇正在發揮成效。第二季毛利率達38.8%。這 270 個基點的成長來自於嚴格的定價、改進的產品組合和更好的庫存供應，而不是大幅折扣。

The rebanner strategy contribution was significant. Shoe Station outperformed Shoe Carnival by over 10% on merchandise sales during Q2 and back-to-school. Beyond top line sales gains, we're seeing a shift in demographics from Carnival's sub-$30,000 household towards Shoe Station's over $50,000 range. This evolution and customer mix is driving improved economics across the portfolio and reducing the corporation's exposure to economic downturns.

重新投放廣告的策略發揮了重要作用。在第二季和返校季期間，鞋站 (Shoe Station) 的商品銷售額比鞋嘉年華 (Shoe Carnival) 高出 10% 以上。除了銷售額的成長，我們還看到人口統計數據發生了變化，從嘉年華郵輪公司年收入低於 3 萬美元的家庭轉向了鞋站郵輪公司年收入超過 5 萬美元的家庭。這種演變和客戶組合正在推動整個產品組合的經濟效益提升，並降低公司受經濟衰退影響的風險。

These new Shoe Station households shop differently. They purchase premium brands and build higher-priced baskets. The result, product margins expanded 280 basis points at Shoe Station in Q2 plus fiscal August versus the prior year.

這些新加入鞋站的家庭購物方式有所不同。他們購買高端品牌商品，並建立價格更高的商品組合。結果，鞋站第二季及第八財年的產品利潤率比上年同期成長了 280 個基點。

Carnival and Rogan both expanded margins, too. But the new customer buying higher-priced premium brands at Shoe Station is the big strategic win to highlight. All of this delivered $0.70 in EPS, beating expectations and giving us the confidence to raise our annual profit guidance range today.

嘉年華郵輪和羅根郵輪的利潤率也都提高了。但值得強調的是，新客戶開始在鞋站購買價格更高的優質品牌，這才是真正的策略勝利。所有這些因素共同促成了每股收益 0.70 美元，超出預期，也讓我們有信心在今天提高年度利潤預期範圍。

Turning to back-to-school. August was our first real test of Shoe Station at scale, and we passed convincingly. We ran one campaign idea across three banners with ruthless simplicity. We have the brands families want at prices that make sense, heavy digital, strategic social, surgical television and rebanner markets.

又到了開學季。8 月是我們對 Shoe Station 進行大規模實際測試的第一年，我們以優異的成績通過了測試。我們以極為簡潔的方式，在三個橫幅廣告中推廣同一個宣傳理念。我們擁有家庭想要的品牌，價格合理，並專注於數位行銷、策略社交行銷、精準電視廣告和橫幅廣告市場。

The fiscal August numbers were strong. Shoe Station grew comparable sales high single digits overall, driven by the children's category growing sales high singles with margin expansion and the adult athletics category growing sales in the low 20s, also with margin growth. Notably, Shoe Carnival delivered positive children's comp sales and margin growth for fiscal August back-to-school also, despite a challenging environment to the lower-income customer.

8月份的財政數據表現強勁。鞋站整體同店銷售額實現了接近兩位數的成長，其中童鞋類銷售額實現了接近兩位數的增長，利潤率也隨之提高；成人運動鞋類銷售額也實現了接近兩位數的增長，利潤率同樣有所提高。值得注意的是，儘管低收入消費者面臨嚴峻的市場環境，但鞋類零售商 Shoe Carnival 在 8 月的返校季依然實現了兒童服飾同店銷售額和利潤率的正成長。

Each banner contributed differently during back-to-school. Station attracted new higher-income shoppers. Carnival competed effectively without sacrificing economics. Rogan started its rebannering efforts toward Shoe Station and migration toward the more accretive pricing strategy. Based on encouraging sales growth results during the Rogan's rebanner start, we extended the campaign into fall.

每面橫幅在返校季都發揮了不同的作用。車站吸引了更多高收入的購物者。嘉年華郵輪在不犧牲經濟效益的前提下，有效地參與了競爭。Rogan 開始重新打造品牌形象，轉向鞋站，並轉型為更具增值性的定價策略。鑑於羅根重新推出橫幅廣告後銷售成長勢頭良好，我們將活動延長至秋季。

Now let me review the latest details on our rebanner rollout progress because this is where our strategy becomes reality. We acquired Shoe Station's 21 stores at the end of 2021. We entered fiscal 2025 with double the store count since the acquisition with 42 Shoe Station stores, approximately 10% of our fleet. Through relentless execution, we're now at 87 Shoe Station stores, approximately 20% of the company. By the end of fiscal 2025, we'll operate 145 Shoe Station stores, approximately one-third of our entire fleet.

現在讓我來回顧一下我們重新推廣橫幅廣告的最新進展，因為這是我們的策略變成現實的關鍵時刻。我們在 2021 年底收購了 Shoe Station 的 21 家門市。截至 2025 財年，我們的門市數量比收購前翻了一番，擁有 42 家 Shoe Station 門市，約佔我們門市總數的 10%。透過不懈努力，我們目前擁有 87 家鞋站門市，約占公司門市總數的 20%。到 2025 財年末，我們將經營 145 家鞋站門市，約占我們全部門店的三分之一。

By back-to-school 2026, we'll surpass 215 stores, 51% of the current fleet at Shoe Stations. That's the tipping point where growth begins to overtake the climb, and we become a different company. The performance gap is developing as we anticipated. Shoe Station rebanners sales are up 8% year-to-date through August, while Carnival comps declined high singles. The Shoe Station rebanners are generating product margins 270 basis points above prior year through August year-to-date.

到 2026 年返校季，我們的門市數量將超過 215 家，佔 Shoe Station 目前門市總數的 51%。這是成長開始超過攀升的轉捩點，我們將成為一家不同的公司。正如我們預期的那樣，績效差距正在擴大。截至 8 月，Shoe Station 的重新掛牌銷售額年增 8%，而 Carnival 的同店銷售額則大幅下滑。截至今年8月，鞋站重新包裝的商品毛利率比去年同期高出270個基點。

Importantly, we are growing sales with a more affluent target we aim to attract to Shoe Station, with sales now growing in the core demographic of over $50,000 household income. Shoe Station's back-to-school taught us valuable lessons. We won in athletics. We expanded margins across categories. We sharply grew our children's category penetration.

重要的是，我們正在透過吸引更富裕的目標客戶群來提高鞋站的銷售額，目前在家庭年收入超過 5 萬美元的核心人群中，銷售額正在增長。鞋站的返校季活動教會了我們許多寶貴的經驗。我們在田徑比賽中獲勝。我們提高了各品類的利潤率。我們大幅提高了兒童產品的市場滲透率。

But despite the growth achieved, we left sales on the table in the children's category, too conservative on depth, not prominent enough in key store areas. Valuable insights captured, now we know how to grow the children's category even higher next back-to-school.

儘管取得了成長，但我們在兒童品類方面仍有銷售潛力，因為在深度上過於保守，在重點門市區域的知名度不夠高。我們已經獲得了寶貴的見解，現在我們知道如何在下一個返校季進一步提升兒童用品類別的表現了。

Rogan's continues to exceed expectations. August sales and product margin growth surpassed the metrics we set. Our response was decisive. Finished the rebanner process at all Rogan's locations to Shoe Station this year. The station model works, the economics are proven. Wisconsin becomes our next Shoe Station stronghold to expand from.

羅根的表現持續超乎預期。8月份的銷售額和產品利潤率成長都超過了我們設定的指標。我們的應對措施果斷有力。今年已完成所有 Rogan's 門市的橫幅更換工作，全部更換為 Shoe Station。車站模式是可行的，其經濟效益已被證明。威斯康辛州將成為我們鞋站擴張的下一個據點。

Let me address to Carnival directly as transparency here is important. Carnival Q2 comps declined high single digits, though we saw sequential improvement from Q1 and sharp improvement at quarter end as back-to-school began. August showed further progress, delivering low single-digit [declines] with growth in children's categories and solid athletic performance. The sub-$30,000 income consumer faces ongoing pressure.

鑑於透明度至關重要，我想直接向嘉年華郵輪公司提出這個問題。嘉年華郵輪第二季度同店銷售額下降了接近兩位數，但與第一季相比有所改善，隨著返校季的開始，季度末業績出現了大幅增長。8 月取得了進一步進展，降幅降至個位數，兒童類別有所增長，體育方面表現穩健。年收入低於 3 萬美元的消費者面臨持續的壓力。

While we could pursue more aggressive promotions to drive traffic, we believe maintaining margin discipline is the right long-term decision versus propping up this customer segment, we are strategically shifting away from. We're managing the Carnival banner as a cash generator during our transition to Shoe Station.

雖然我們可以採取更積極的促銷措施來吸引流量，但我們認為，維持利潤率紀律才是正確的長期決策，而不是扶持我們正在策略性地轉向的這個客戶群。在向鞋站過渡期間，我們利用嘉年華品牌來賺取現金。

Over each upcoming quarter, Carnival's percentage of our portfolio declined systematically. By back-to-school 2026, it will represent less than 49% of our company. This deliberate shift reduces our exposure to a more volatile consumer segment while we diversify our customer base by building our premium banner.

在接下來的每個季度裡，嘉年華郵輪在我們投資組合中所佔的比例都呈現系統性下降。到 2026 年返校季，它將占我們公司員工總數的不到 49%。這種刻意的轉變降低了我們對波動性較大的消費群的風險敞口，同時透過打造我們的高端品牌來實現客戶群的多元化。

Our financial position gives us advantages many competitors do not have. As of fiscal August end, cash and securities are up double digits year-over-year at nearly $150 million, debt is zero. While others navigate covenants and credit line, we invest from strength. We are investing approximately $25 million this year in our rebanner strategy with an expected two- to three-year ROI payback, a strong payback model and currently our highest profit return for our cash flow.

我們的財務狀況賦予了許多競爭對手所不具備的優勢。截至 8 月底，現金和證券年增兩位數，接近 1.5 億美元，債務為零。當其他人還在為契約和信貸額度而苦惱時，我們已經憑藉自身實力進行投資了。今年，我們將在品牌重塑策略上投資約 2,500 萬美元，預計投資回報期為兩到三年，投資回報模型強勁，目前是我們現金流利潤回報率最高的策略。

We continue to evaluate acquisitions in a disciplined fashion. Our aim is to elevate our customer demographics, expand into new markets and do so at a fair valuation. As announced after the Q1 call, I asked Kerry Jackson to return to my executive leadership team. Kerry's 35 years with the company and over 25 years as our CFO is a great asset to have back up by side. I'm excited about this extra horsepower supporting our strategic growth initiatives.

我們將繼續以嚴謹的態度評估收購項目。我們的目標是提升客戶群素質，拓展新市場，並以合理的估值實現這一目標。正如第一季財報電話會議後宣布的那樣，我邀請 Kerry Jackson 重返我的高階主管領導團隊。Kerry 在公司工作了 35 年，擔任財務長超過 25 年，他的存在對我們來說是一筆寶貴的財富。我非常高興這額外的動力能夠支持我們的策略成長計畫。

On inventory, yes, we're heavy. This is strategy reflecting the macroeconomic volatility, not accident. Our intentional inventory investment delivered sharply improved in-stock rates on key items during back-to-school versus last year. When demand spiked in August, we captured it and drove comp sales growth with accretive margins. That availability at a lower cost basis was a key element that drove our margin expansion and our Q2 earnings beat.

是的，我們的庫存很重。這是反映宏觀經濟波動性的策略，並非偶然。與去年相比，我們有意進行的庫存投資使返校季期間關鍵商品的庫存率大幅提高。8 月需求激增時，我們抓住了機遇，並透過提高利潤率推動了同店銷售成長。以更低的成本獲得產品是推動我們利潤率擴張和第二季獲利超預期的關鍵因素。

We expect to normalize inventory levels in 2026, with completion timing dependent on tariffs and supply chain clarity. But understand this, with our balance sheet and our margin profile, carrying extra inventory that's selling profitably is a luxury problem. We'd rather have it and sell it than miss the sale entirely.

我們預計庫存水準將在 2026 年恢復正常，完成時間取決於關稅和供應鏈的穩定性。但請理解，以我們的資產負債表和利潤率來看，持有額外且獲利的庫存是一種奢侈的問題。我們寧願先擁有它再賣掉，也不願完全錯過這次銷售機會。

Looking forward, our confidence is building on multiple fronts. Our rebanner strategy is delivering strong sales and margin growth. Gross profit margins are robust and on pace to exceed our high-side guidance, given current trends. We tightened sales guidance to reflect Station's and Rogan's growth in Carnival's reality. Overall, we raised our annual EPS guidance range to reflect the Q2 profit beat and fiscal August comp growth results.

展望未來，我們的信心正從多方面不斷增強。我們的重新推廣策略帶來了強勁的銷售額和利潤成長。鑑於目前的趨勢，毛利率表現強勁，預計將超過我們先前的最高預期。我們收緊了銷售預期，以反映嘉年華郵輪旗下 Station 和 Rogan 的成長情況。總體而言，我們提高了年度每股收益預期範圍，以反映第二季度利潤超出預期以及 8 月份的同店銷售成長業績。

Importantly, we can see the inflection point approaching. When Station hits 51% of our fleet next year, the math flips. Station growth begins to overtake Carnival decline, median income customers overtake deep discount shoppers as our core.

重要的是，我們可以看到拐點正在臨近。明年當 Station 占我們車隊的 51% 時，情況就完全不同了。車站業務成長開始超過嘉年華郵輪業務的下滑，中等收入客戶超過低價購物者成為我們的核心客戶。

I'll now turn the call over to Patrick to walk through the detailed financials and updated outlook. Patrick?

現在我將把電話交給派崔克，讓他詳細解說財務數據和最新展望。派崔克？

Thank you, Mark. Good morning, everyone. Let me provide additional detail on our second quarter and back-to-school financial performance and our updated fiscal 2025 outlook. Starting with our Q2 and August sales results, second quarter net sales were $306.4 million compared to $332.7 million in the prior year. The 7.9% change reflects our strategic focus on higher-margin business as we transform our customer mix and banner portfolio.

謝謝你，馬克。各位早安。讓我進一步詳細介紹一下我們第二季和返校季的財務表現以及我們更新後的 2025 財年展望。從我們第二季和八月的銷售業績來看，第二季淨銷售額為 3.064 億美元，而去年同期為 3.327 億美元。7.9% 的變化反映了我們在轉變客戶結構和品牌組合的同時，將策略重點放在利潤率更高的業務上。

Our 7.5% comparable store sales decline includes approximately 100 basis points of impact from the 20 rebanners we completed this quarter. The divergent performance by banner in the quarter reinforces our rebanner strategy. Shoe Station sales grew 1.6% with essentially flat comparable store sales. Through August year-to-date, Station rebanner comps are now up high single digits.

本季我們同店銷售額下降了 7.5%，其中包括本季完成的 20 家門市重新招牌帶來的約 100 個基點的影響。本季不同橫幅廣告表現的差異強化了我們的重新投放橫幅廣告策略。鞋店銷售額成長了 1.6%，而同店銷售額則基本持平。截至今年8月，Station重新投放廣告的廣告數量已達到接近兩位數的成長。

In Q2, Shoe Carnival sales declined 10.1%, as we maintain pricing discipline despite pressure on the low-income consumer. Shoe Carnival's high single-digit comp decline in the quarter was the main driver of our overall comparable store sales decrease. Rogan delivered approximately $20 million in net sales, in line with our integration plans.

第二季度，儘管低收入消費者面臨壓力，但我們仍保持價格紀律，鞋類嘉年華的銷售額下降了 10.1%。鞋類零售商 Shoe Carnival 本季同店銷售額出現高個位數下滑，這是我們整體同店銷售額下降的主要原因。Rogan 實現了約 2000 萬美元的淨銷售額，符合我們的整合計劃。

Let me now provide some additional color on our performance by major footwear category during August, our highest stake month of the year. Total company comparable growth was achieved with mid-singles growth in children's and low singles growth in athletics.

現在讓我再詳細介紹一下我們在 8 月份（一年中最重要的月份）主要鞋類產品的銷售業績。公司整體可比成長主要來自兒童業務的中等單筆成長和體育用品業務的低單筆成長。

Shoe Station far outperformed the total company, achieving high singles growth in children's and low 20s growth in men's and women's athletics. Total company men's and women's non-athletics declined low singles, reflecting the strong athletic cycle we are in, with Station also in the low singles, outperforming Carnival.

鞋站 (Shoe Station) 的表現遠優於公司整體水平，童鞋銷量實現了較高的單筆增長，男女運動鞋銷量也實現了 20% 左右的增長。公司男女非體育類單打總分下降，反映出我們正處於強勁的體育週期，Station 的單打總分也低於 Carnival。

Now moving on to gross profit. Our gross profit margin of 38.8% represents a 270-basis point expansion versus last year. Let me break this down. Merchandise margins improved 390 basis points, driven by three factors: disciplined pricing strategy across all banners, favorable mix shift as Shoe Station grows and strategic inventory investments that improved in-stock rates. This more than offset 120 basis points of deleverage in buying, distribution and occupancy costs.

接下來我們來看毛利。我們的毛利率為 38.8%，比去年提高了 270 個基點。讓我來詳細解釋一下。商品利潤率提高了 390 個基點，這主要得益於三個因素：所有品牌的嚴格定價策略、隨著鞋站業務增長而出現的有利的產品組合變化以及提高庫存率的戰略性庫存投資。這足以抵消採購、分銷和佔用成本方面 120 個基點的去槓桿化。

SG&A expenses were $93.6 million or 30.6% of sales compared to 27.1% last year. Approximately 200 basis points of this increase relates to our rebanner investments, with the remainder due to deleverage, partially offset by disciplined cost management. Our effective tax rate in the quarter was 25.9% versus 26.3% last year. Net income was $19.2 million or $0.70 per diluted share compared to $22.6 million or $0.82 last year. Our Q2 2025 earnings included $0.21 of rebanner investments and otherwise exceeded the prior year by $0.09.

銷售、一般及行政費用為 9,360 萬美元，佔銷售額的 30.6%，去年同期為 27.1%。此次成長中約有 200 個基點與我們的重新廣告投資有關，其餘部分是由於去槓桿化造成的，部分被嚴格的成本管理所抵消。本季實際稅率為 25.9%，去年同期為 26.3%。淨利為 1,920 萬美元，即每股攤薄收益 0.70 美元，而去年同期為 2,260 萬美元，即每股攤薄收益 0.82 美元。我們 2025 年第二季的收益包括 0.21 美元的重新推廣投資，除此之外，比前一年增加了 0.09 美元。

Turning to our balance sheet and cash flow. We ended the quarter with $91.9 million in cash and marketable securities, up from $84.5 million last year. Following our strong August performance, cash and securities exceeded $148 million, up over 10% versus prior year, and we continue to operate debt-free.

接下來來看看我們的資產負債表和現金流量表。本季末，我們持有現金及有價證券9,190萬美元，高於去年同期的8,450萬美元。繼 8 月強勁的業績表現之後，現金和證券超過 1.48 億美元，比上年增長超過 10%，我們繼續保持零負債營運。

Inventory at quarter end was $449 million, up 5% versus last year. This strategic investment delivered the product availability that drove our margin expansion and positive comps during back-to-school. Year to date, capital expenditures totaled $24.4 million, with approximately $20 million funding our 44 rebanner conversions.

季度末庫存為 4.49 億美元，比去年同期成長 5%。這項策略性投資確保了產品的充足供應，從而推動了我們在返校季期間的利潤率成長和同店銷售額的積極提升。今年迄今為止，資本支出總額為 2,440 萬美元，其中約 2,000 萬美元用於我們的 44 個重新橫幅廣告轉換項目。

Let me provide more detail on our rebanner economics. The $0.21 second quarter EPS impact includes store closure costs, four to six weeks of lost sales during conversion, additional depreciation, customer acquisition costs and grand opening expenses. Year to date, we've absorbed $0.36 of EPS impact. We now expect approximately $0.70 for the full year or about $25 million in operating income impact. Given the margin increases and high single-digit comp lifts we are achieving, these investments are a compelling use of our resources.

讓我更詳細地介紹一下我們的橫幅廣告經濟效益。第二季每股收益 0.21 美元的影響包括門市關閉成本、轉換期間四到六週的銷售損失、額外折舊、客戶獲取成本和盛大開幕費用。今年迄今為止，我們已吸收了 0.36 美元的每股盈餘影響。我們現在預計全年約為 0.70 美元，或約 2500 萬美元的營業收入影響。鑑於我們實現了利潤率提升和接近兩位數的同店銷售額成長，這些投資是對我們資源的有效利用。

Now turning to our updated fiscal 2025 outlook. Based on our second quarter outperformance and positive August momentum, we are raising several key metrics. Net sales guidance is now $1.12 billion to $1.15 billion, tightened from our previous range. This implies significant sequential improvement in the back half, with comparable store sales improving from down high single digits in Q2 to down low single digits in the back half of the year.

現在來看看我們更新後的2025財年展望。基於我們第二季優異的業績和8月的良好勢頭，我們上調了幾個關鍵指標。淨銷售額預期目前為 11.2 億美元至 11.5 億美元，較先前的預期範圍有所收緊。這意味著下半年業績將出現顯著的環比改善，同店銷售額將從第二季的高個位數下降幅度改善至下半年的低個位數下降幅度。

This improvement reflects a growing Shoe Station mix and strong event period performance, including August positive comparable sales. We're raising the EPS guidance range from $1.70 to $2.10, increasing the low end by $0.10. This reflects our Q2 beat and confidence in sustained margin expansion. The wide EPS range reflects macro uncertainty and expected traffic volatility outside key selling periods.

這項改善反映了鞋類產品組合的不斷擴大和促銷期間的強勁表現，包括 8 月份同店銷售額的成長。我們將每股盈餘預期範圍從 1.70 美元上調至 2.10 美元，下限上調 0.10 美元。這反映了我們第二季業績超出預期，以及對利潤率持續成長的信心。每股盈餘波動範圍較大，反映了宏觀經濟的不確定性以及主要銷售期間以外的預期客流量波動。

Gross profit margin guidance increases 150 basis points to 36.5% to 37.5%, reflecting the structural margin improvement from rebanners and disciplined pricing. SG&A is expected to be $355 million to $360 million, including the increased rebanner investment. Capital expenditures are expected to be $45 million to $55 million, with $30 million to $35 million for rebanners. For the third quarter specifically, we expect net sales of $290 million to $300 million and EPS of $0.50 to $0.55.

毛利率預期上調 150 個基點至 36.5% 至 37.5%，反映了重新包裝和嚴格定價帶來的結構性利潤率改善。銷售、一般及行政費用預計為 3.55 億美元至 3.6 億美元，其中包括增加的重新招牌投資。預計資本支出為 4500 萬至 5500 萬美元，其中 3000 萬至 3500 萬美元用於重新製作橫幅。具體到第三季度，我們預計淨銷售額為 2.9 億美元至 3 億美元，每股收益為 0.50 美元至 0.55 美元。

In closing, we are successfully evolving our business mix toward higher-margin categories and customers. Our rebanner investments are generating strong returns, and our balance sheet provides the flexibility to execute our rebanner strategy while remaining opportunistic on acquisitions.

最後，我們正在成功地將業務組合轉向利潤率較高的類別和客戶。我們的重新推廣投資正在產生強勁的回報，我們的資產負債表提供了執行重新推廣策略的靈活性，同時保持對收購的機會。

I'll now turn it back over to Mark for closing remarks.

現在我將把發言權交還給馬克，讓他做總結陳詞。

Before opening for Q&A, let me briefly summarize where we are. We delivered $0.70 EPS in Q2, beating expectations by over 20%, with gross margins at 38.8%, our highest Q2 margin in years. That 270 basis point expansion came from strategic choices that are working. We increased our annual EPS guidance range today, reflecting the Q2 beat and fiscal August results.

在正式進入問答環節之前，讓我先簡單總結一下我們目前的情況。第二季每股收益為 0.70 美元，超出預期 20% 以上，毛利率為 38.8%，是多年來第二季最高的毛利率。這270個基點的擴張源自於行之有效的策略選擇。今天，我們提高了年度每股收益預期範圍，以反映第二季度業績超出預期以及 8 月份的財年業績。

Fiscal August delivered something significant. We achieved positive comparable sales growth during back-to-school, our highest stakes period. Shoe Station grew sales high single digits, carnival delivered positive children comps, Rogan grew sales and margins while being rebannered. Every banner contributed when it mattered most.

8 月的財政報告取得了重大成果。我們在開學季（我們最重要的時期）實現了同店銷售額的正成長。鞋站銷售額實現了接近兩位數的增長，嘉年華的兒童用品銷售額實現了積極的增長，羅根在重新包裝後實現了銷售額和利潤率的增長。每一面旗幟都在最關鍵的時刻發揮了作用。

Our rebanner strategy is working. Station outperformed Carnival merchandise sales by over 10% in Q2 and fiscal August. Product margin resulting from our rebanner strategy expanded nearly 300 basis points. We'll operate 145 Shoe Station stores by year-end, on track for majority Shoe Station by next back-to-school. We set out to build a company that serves median-income families with better brands and better experiences. The company is no longer a concept. It's operating, it's growing, and it's delivering.

我們的重新投放廣告策略奏效了。在第二季和第八財年，Station 的商品銷售額比 Carnival 的商品銷售額高出 10% 以上。我們的重新推廣策略使產品利潤率提高了近 300 個基點。到今年年底，我們將經營 145 家鞋站門市，預計到下一個返校季，大部分門市將由鞋站門市營運。我們的目標是打造一家能夠為中等收入家庭提供更優質品牌和更佳體驗的公司。這家公司不再只是一個概念。它正在運營，正在發展，並且正在交付成果。

With that, Patrick, Tanya, and I would be happy to take your questions. Operator, please open the line for Q&A.

那麼，派崔克、坦妮亞和我將很樂意回答你們的問題。接線員，請開通問答線。

(Operator Instructions)

（操作說明）

Mitch Kummetz, Seaport Research Partners.

米奇‧庫梅茨，海港研究夥伴公司。

Excuse me. Thanks for taking my questions. Going to be a handful. First of all, Mark, I'm curious on the second quarter. Your sales came a little below plan, but obviously, your gross margins were well ahead of plan. You talked about prioritizing margin dollars.

打擾一下。謝謝您回答我的問題。將會很棘手。首先，馬克，我對第二季的情況很感興趣。您的銷售額略低於計劃，但顯然，您的毛利率遠遠超出計劃。你剛才提到要優先考慮利潤空間。

I'm just curious, is there something about the quarter that was a bit unexpected? Or did you kind of change your priorities in the quarter in order to kind of achieve the results that you did that were a bit different than what you kind of laid out three months ago?

我只是好奇，這個季度有沒有什麼出乎意料的地方？或者說，為了取得與三個月前製定的目標略有不同的結果，你是否在本季改變了你的工作重點？

Hi, Mitch, thanks for the question. I think the opportunistic buys and additional inventory that the team brought in performed better than we expected. We captured success at a lower cost basis and strength at a higher-margin run first. Second, the Shoe Station performance continues to accelerate. And as that grows towards a higher percent of our mix, that's helping us drive our margins higher than we expected.

嗨，米奇，謝謝你的提問。我認為團隊抓住機會進行的採購和額外進貨的表現比我們預期的要好。我們首先以較低的成本獲得了成功，並以較高的利潤率獲得了優勢。其次，鞋站的表現持續加速成長。隨著這部分產品在我們產品組合中所佔比例的不斷提高，我們的利潤率也因此超過了預期。

And third, we continue to see competitors do irrational things related to pricing, and we believe that's not the strategy for us. We've stayed true while others were doing very aggressive profit dilutive activities before back-to-school. We stayed true and steady to our focus of where we're going to be, ready to deliver growth when the customer is ready to shop profitably during back-to-school.

第三，我們不斷看到競爭對手在定價上做出不理智的行為，我們認為這不是我們應該採取的策略。在開學季之前，當其他公司都在進行非常激進的稀釋利潤的活動時，我們始終堅持初心。我們始終堅持既定目標，穩步前進，準備在顧客返校季購物盈利時實現成長。

And it delivered, with comparable growth coming in Q3 right away as soon as back-to-school started. It was an exciting period of time.

事實證明，這一策略奏效了，第三季隨著返校季的開始，立即實現了類似的成長。那是一段令人興奮的時期。

And then, Patrick, on the third quarter, you gave us guidance in terms of sales and earnings. Is there anything more you can say in terms of kind of what your comp expectations are for the quarter and then also margins gross versus SG&A?

然後，帕特里克，在第三季度，你給我們提供了銷售額和收益的指導。關於本季的薪資預期以及毛利率與銷售、管理及行政費用的比率，您還有什麼可以透露的嗎？

Hey, Mitch, thanks for the question. Yeah, there's a little bit more detail that we can provide on our third quarter results. First, our -- on our sales, the $290 million to $300 million range that we've given is down 2 to down 5. So midpoint somewhere in the 3% range, similar to our annual guide in the back half of the year. We don't have any meaningful difference in stores, so our comp would be very similar to our total sales on that front.

嘿，米奇，謝謝你的提問。是的，關於第三季業績，我們還有一些細節可以提供。首先，關於我們的銷售額，我們之前給出的 2.9 億美元至 3 億美元的範圍下降了 2% 至 5%。因此，中間值大約在 3% 的範圍內，與我們下半年的年度指引值類似。我們在門市方面沒有任何實質差異，因此我們的同店銷售額與總銷售額在這方面會非常接近。

With respect to margin, we earned 36% in the quarter last year. We would expect a number that is 100 to 150 basis points above that in Q3 this year. So targeting a number of like 37% to 37.5% would be the thought process. SG&A, I think the best way to think about that is a pure number that is $95 million. So consistent with what we spent in Q2, which was about $94 million.

就利潤率而言，我們去年同期實現了 36% 的利潤率。我們預計今年第三季的數字將比這個數字高出 100 到 150 個基點。因此，目標數字設定在 37% 到 37.5% 左右是比較合理的想法。銷售、一般及行政費用，我認為最好的理解方式就是用一個純粹的數字來表示，那就是 9500 萬美元。這與我們第二季的支出基本一致，當時的支出約為 9,400 萬美元。

That's very helpful. And then just as a follow-up to that. I mean, it sounds like August is off to a very good -- or 3Q is off to a very good start, given August. Can you just maybe talk through kind of your expectations for the balance of the quarter in order to get to sales down 2 to 5?

那很有幫助。然後，作為對那件事的後續。我的意思是，聽起來八月開局非常好——或者說，考慮到八月份的情況，第三季開局非常好。您能否簡要談談您對本季剩餘時間的預期，以便實現銷售額下降 2% 到 5% 的目標？

Sure. That would -- that's a pretty easy take to make for us. The low end of our range at $290 million would assume comparable sales and total sales declines in the high singles, consistent with what we've seen in the first half of the year. And then at the low side of it, we see a number that is more flat. But the midpoint is this 3% sort of decline, which is a meaningful improvement from where we've been in the first half of the year.

當然。那——對我們來說，這很容易理解。我們預測的最低區間為 2.9 億美元，這意味著同期銷售額和總銷售額在上半年下滑，這與我們今年上半年所看到的情況一致。然後，在低端，我們看到一個較為平坦的數字。但中間值是大約 3% 的降幅，這比今年上半年的情況有了顯著改善。

And then, Mark, you made a comment in your prepared remarks that you're managing Shoe Carnival as a cash generator. Can you just elaborate on that?

馬克，你在事先準備好的演講稿中提到，你把鞋類嘉年華當作一個賺錢的生意來經營。能詳細解釋一下嗎？

Yeah. I think that comes back to our margin integrity and not chasing traffic gains at any cost for that sub-$30,000 household. We're seeing the competitive set go after that low-income strap household with very aggressive pricing activity that's eroding margins and delivering different outcomes than we just put up, let's say, our 270-basis point growth in Q2. That was discipline.

是的。我認為這歸根結底還是為了保證利潤率，而不是為了追求流量成長而犧牲年收入低於 3 萬美元的家庭的利益。我們看到競爭對手正以非常激進的價格策略瞄準低收入家庭，這正在侵蝕利潤率，並帶來與我們剛剛實現的（比如說）第二季度 270 個基點的成長截然不同的結果。這就是紀律。

We think that's the right thing as we're strategically moving away from that sub-$30,000 households. Instead of propping that up, chasing unprofitable low-quality sales now, we decided, and we'll continue to decide with Shoe Carnival, not to prop up that segment.

我們認為這是正確的做法，因為我們正在策略性地逐步減少對年收入低於 3 萬美元家庭的關注。與其支撐這個領域，追逐無利可圖的低品質銷售，我們決定，我們將繼續對鞋類嘉年華做出同樣的決定，不去支撐這個領域。

So we will expect to see in our guidance, that lower-income customer choosing to shop elsewhere and that median-income household shopper, $50,000 and up, choosing to shop at us. It's profitable, it's where we're heading, and it's a strategic path.

因此，我們預計在我們的指導下會看到，低收入顧客會選擇去其他地方購物，而中等收入家庭購物者（年收入 5 萬美元及以上）會選擇在我們這裡購物。它有利可圖，這是我們前進的方向，也是一條戰略道路。

With that, Shoe Carnival throws off very strong cash characteristics and as we shared, cash up sharply as we sit here today, positioning us to fund fully our growth initiatives, to fund fully this transition to Shoe Station, the median customer and to be ready for further strategic initiatives as they arise.

因此，Shoe Carnival 展現出非常強勁的現金流特徵，正如我們今天所分享的，現金流大幅增長，使我們能夠為增長計劃提供充足的資金，為向 Shoe Station（面向中端客戶）的轉型提供充足的資金，並為未來可能出現的進一步戰略舉措做好準備。

And then maybe last for me. You mentioned that once Shoe Station gets to -- like 51% of your store base kind of the model lifts, that would happen kind of midway through next year. Does that mean that the impact of the rebannering is kind of net neutral to next year's earnings because whatever drag that you see in the first half gets offset by a tailwind in the back half? How should we think about that? I know you're not giving next year guidance yet, but if you could just kind of walk us through that intuitively.

也許對我來說，那是最後一個了。你提到，一旦鞋站的門市數量達到——例如占到你門市總數的 51%，這種模式就會有所提升，這大概會在明年年中發生。這是否意味著品牌重塑對明年收益的影響基本上持平，因為上半年的任何拖累都會被下半年的利好因素所抵消？我們該如何看待這個問題？我知道您目前還沒有給出明年的指導意見，但如果您能用簡單易懂的方式給我們講解一下就太好了。

I can give you broad strokes. As you said, we're not ready to provide the full financial thought on it. But you've got it right. We believe when we hit 51% of our fleet is operating a Shoe Station, next back-to-school, we start seeing sustained comp positive versus a sporadic, which we're delivering now in key event periods.

我可以給你一個大致的概括。正如您所說，我們目前還不便提供完整的財務分析。但你說得對。我們相信，當我們的車隊中有 51% 經營鞋站時，下一個返校季，我們將開始看到持續的同店銷售成長，而不是像我們現在在關鍵活動期間那樣零星地增長。

So we think about it in our early planning that the back half of next year is where we start showing a comp positive for the total corporation for the Q3, Q4 period. Shoe Carnival will still represent a significant percent, and we still expect that will be a headwind from that lower-income customer. So we're not anticipating high or mid-single digit comp in the back half of the year. But rather, it turns an inflection point to low singles, just barely comp. But that's something to build on as we continue to transition.

因此，我們在早期規劃中考慮到，明年下半年我們將開始在第三季和第四季實現公司整體業績的正成長。鞋類嘉年華仍將佔據相當大的份額，我們仍然預期來自低收入顧客的阻力將持續存在。因此，我們預期下半年的同業拆借利率不會達到個位數高點或中位數。但相反，它成為了低單打的轉捩點，勉強達到參賽水準。但這是我們在繼續轉型過程中需要努力的方向。

Financially, we're not really ready to share broader thoughts on that beyond that comp directional concept. And the rebannering fact of a significant amount in the guide would be rebannered in Q1 and Q2. And those financial implications, we'll provide more guidance as we get further along this year.

從財務角度來看，除了上述比較方向性概念之外，我們目前還不方便分享更廣泛的想法。指南中大量內容的重新發布將在第一季和第二季重新發布。至於這些財務影響，我們將在今年稍後提供更多指導。

All right. That's helpful. Thank you, good luck.

好的。那很有幫助。謝謝，祝你好運。

Sam Poser, Williams Trading.

Sam Poser，威廉斯貿易公司。

Good morning. A couple of mine. I'd like to talk to you about the inventory levels and the gross margin guidance and get some color on maybe where inventories are at the end of August. And just looking at the 3Q guidance and the gross margin guidance there, it looks like you'll sell $60 million, $70 million of cost of goods in August, give or take, you have $449 million of inventory on hand. How do you keep the gross margin guidance as high as it is with all this inventory? Doesn't the rubber have to hit the road sometime?

早安.我的幾張。我想和您談談庫存水準和毛利率預期，並了解一下八月底的庫存。單從第三季業績指引和毛利率指引來看，8月的商品成本約為6,000萬至7,000萬美元，而目前庫存為4.49億美元。在庫存如此龐大的情況下，如何才能維持如此高的毛利率預期？難道總要等到真正考驗的時候才行嗎？

Hey, Sam, it's Tanya. Just expand on your question in terms of inventory at the end of August, to answer your question, it's really in line with where we ended Q2, up mid-singles. And we strategically went after inventory to bill for back-to-school, which helped us deliver that comp growth in the month of August.

嘿，山姆，我是坦婭。請您就八月底的庫存情況再補充一些資訊。回答您的問題，庫存狀況與第二季末基本一致，略高於單週中段。我們採取了策略性措施，進軍返校季市場，從而實現了8月的同店銷售成長。

We also worked through and bought opportunistic buys, which we're carrying in that inventory. So that number that you see in terms of inventory is opportunistic buys that will carry until we get to spring 2026. So that's just carrying through and then the balance where we built -- so we built in sandals and opportunistic buys for 2026.

我們也進行了一些機會性採購，這些採購目前都存放在我們的庫存中。所以你看到的庫存數字是機會性採購，這些採購將持續到 2026 年春季。所以這只是延續之前的策略，然後是我們在 2026 年建造的平衡——所以我們為涼鞋和機會性購買做了規劃。

And then the other place that we're carrying additional inventory is in the athletic business, specifically in kids athletic because we built that for back-to-school, which again helped us deliver that comp growth in the month of August. And those are all in key items, high-margining styles that will carry all the way through the season. So we recognize we have more inventory than we would like to, but we strategically did that for better margin opportunities and growth as we work through third quarter into the balance of the year.

此外，我們還在體育用品行業，特別是兒童體育用品行業增加了庫存，因為我們為返校季打造了這部分庫存，這也幫助我們在 8 月份實現了同店銷售增長。而且這些都是關鍵單品，利潤率高的款式，可以貫穿整個季度。因此，我們意識到我們的庫存比我們希望的要多，但我們這樣做是為了在第三季及今年剩餘時間獲得更好的利潤機會和成長。

And then on the margin side of the equation, Mark spoke to that. But again, we continue to see better margins based on the opportunistic buys that we've done, our disciplined pricing, which we will strategically be disciplined through the balance of the year; and the key item position that we have this year and the better key item position that we're in this year than we've ever been.

然後，在等式的邊緣部分，馬克也談到了這一點。但是，我們仍然看到利潤率有所提高，這得益於我們採取的機會性收購、我們嚴格的定價策略（我們將在今年餘下的時間裡繼續嚴格執行這一策略）、以及我們今年所擁有的關鍵產品地位，而且我們今年的關鍵產品地位比以往任何時候都要好。

Just a follow-up. So we know a hard number. The inventory was $449 million. That's a hard number that can tell us what's happening. Is that -- what is the number -- I mean, I don't know -- since we don't know what the mid-single-digit increase year-over-year means, is -- what -- I mean, what is the number? Is it higher or lower than $449 million? Is it -- since you had that strong August, is that now at $420 million? Because it's really what the number is, not what the increase is. It's looking forward, not looking backwards.

補充一下。所以我們知道了一個確切的數字。庫存價值4.49億美元。這是一個確切的數字，可以告訴我們發生了什麼事。那是——具體數字是多少——我的意思是，我不知道——因為我們不知道年增長率達到個位數中段意味著什麼，那是——什麼——我的意思是，具體數字是多少？高於還是低於 4.49 億美元？是嗎？因為8月業績強勁，現在是不是已經達到4.2億美元了？因為真正重要的是數字本身，而不是成長幅度。這是向前看，而不是向後看。

Sam, it's Mark. We're not going to give an interim inventory for a right to second, books aren't closed for all of that. We're sharing -- sales are closed for fiscal August, and we're really delighted to be able to give the full back-to-school growth and margins closed. We're really delighted to be able to share that and the category information.

山姆，我是馬克。我們不會提供中期庫存清單以獲得二次購買權，所有此類交易的帳目都不會關閉。我們正在分享—8 月的銷售已經結束，我們非常高興能夠公佈完整的返校季成長和利潤率數據。我們非常高興能夠分享這些資訊以及類別資訊。

Here's the message on inventory. We have too much, as I said in my speech. And as Tanya said, we have it in places we feel good about delivering strong margins as we work through the fall season, the spring season and the key items.

以下是庫存資訊。正如我在演講中所說，我們擁有的太多了。正如 Tanya 所說，我們在一些我們感覺能夠帶來強勁利潤的地方已經做好了準備，我們將努力完成秋季、春季和關鍵項目。

Next year, once we have complete clarity or better clarity on the supply chain and tariffs, we will be working through and normalizing inventory levels. But we do not see that margin erosion becoming relevant in this fiscal year, and we do not see that product being margin deteriorating next year. It's a good product.

明年，一旦我們對供應鏈和關稅有了更清晰的了解，我們將著手解決庫存水準問題，使其正常化。但我們認為本財年利潤率下降不會成為問題，我們也不認為該產品的利潤率會在明年惡化。這是個好產品。

Okay. And then just a little question. Are you guys going to see Jordan product for Spring '26? And with the Shoe Carnival business comping down high singles, could we assume that their brands such as Birkenstock and Skechers and others that were probably significantly better or possibly up, and it was a lot of the real low-end, moderate non-branded products that really drove the comp down because the -- even the lower-income customers want those sort of high-in-demand brand?

好的。最後還有一個小問題。你們覺得喬丹品牌會在2026年春季上市嗎？鑑於鞋類嘉年華業務的同店銷售額下降，我們可以假設像 Birkenstock 和 Skechers 等品牌的銷售額可能明顯提高，而真正拉低同店銷售額的卻是很多低端、中等價位的非品牌產品，因為即使是低收入顧客也想要那些需求量大的品牌？

Yeah, I'm going to grab that, Sam. We're not going to share with our competitors what new products are coming in. I have great confidence. We have outstanding exciting brands that will be on our sales floor in early 2026, but I'm not going to share what those are with our competitive set to think about that.

是的，我去拿，山姆。我們不會向競爭對手透露即將推出的新產品。我信心十足。我們有一些非常優秀的品牌，將於 2026 年初在我們的銷售區推出，但我不會透露這些品牌是什麼，以免我們的競爭對手為此擔心。

On the second part of that question, our higher ticket items, best brands in the world, whether that's a footbed or an athletic in performance, performing outstanding. We've seen those drive the results, we're seeing those lead to capturing the higher-income customer, to delivering sales growth, to delivering margin growth.

關於問題的第二部分，我們的高價商品，世界頂級品牌，無論是鞋墊還是運動鞋，都表現出色。我們已經看到這些因素推動了業績成長，我們看到這些因素有助於吸引高收入客戶，實現銷售成長，實現利潤成長。

Without a doubt it's tight focus on the best brands in select segments and not private label. It's been a winning recipe for us being a retailer and not a manufacturer, and we're seeing that play out incredibly well at this point of time. While others navigate their covenants and manufacturing, we just stay focused on buying the world's best brands and delivering margin growth.

毫無疑問，它專注於特定細分市場中的最佳品牌，而不是自有品牌。對我們來說，作為零售商而不是製造商，這種模式一直都是成功的秘訣，而且目前來看，這種模式的效果非常好。當其他公司忙於應對合約和生產製造問題時，我們只專注於收購世界頂級品牌並實現利潤成長。

Thank you. And then lastly, how are you seeing -- like how are the brands in general taking price? What are you seeing from price increases going into the balance of this year and going into next year due to the tariff impact from your wholesale partners?

謝謝。最後，您如何看待——例如，各個品牌總體上是如何定價的？由於批發合作夥伴的關稅影響，您認為今年剩餘時間和明年價格會有哪些上漲？

Hi, Sam. Just recently, it had been a little quiet because we're on a pause, a 90-day pause with China right now. So China at 30%. But when they came back with the Vietnam with the additional 10, so it was 10 on top of 10, we're starting to get some more increases there. So as we move into spring, we're looking at price increases between 5% and 7% in total based on what we've gotten back thus far.

嗨，山姆。最近這段時間比較平靜，因為我們與中國的關係處於暫停狀態，目前暫停了90天。所以中國佔30%。但當他們帶著越戰的戰果回來時，又增加了 10 倍，也就是在 10 倍的基礎上又增加了 10 倍，我們開始看到那裡又出現了一些增長。因此，隨著春季的到來，根據我們目前得到的消息，我們預計價格總漲幅將在 5% 到 7% 之間。

Okay. Thanks very much.

好的。非常感謝。

(Operator Instructions)

（操作說明）

There are no further questions at this time. I would now like to turn it back over to Mark Worden for closing remarks.

目前沒有其他問題了。現在我謹將發言權交還給馬克‧沃登，請他作總結發言。

Thank you all for joining us for our second quarter call. We're excited about the progress we're seeing with our growth strategy and look forward to discussing it in greater depth with you at our Q3 call later this year.

感謝各位參加我們的第二季電話會議。我們對成長策略的進展感到興奮，並期待在今年稍後的第三季電話會議上與您更深入地討論該策略。

That concludes today's conference call. You may disconnect.

今天的電話會議到此結束。您可以斷開連線。