Stitch Fix Inc (SFIX) 2023 Q1 法說會逐字稿

Hello, and thank you for standing by. Welcome to the Stitch Fix First Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions)

你好，謝謝你的支持。歡迎參加 Stitch Fix 2023 財年第一季度收益電話會議。 （操作員說明）

It is now my pleasure to introduce Hayden Blair.

現在我很高興介紹海登·布萊爾。

Good afternoon, and thank you for joining us today to discuss the results for Stitch Fix's First Quarter of Fiscal Year 2023. Joining me on the call today are Elizabeth Spaulding, CEO of Stitch Fix; and Dan Jedda, CFO. We have posted complete first quarter 2023 financial results in a press release on the quarterly results section of our website, investors.stitchfix.com. A link to the webcast of today's conference call can also be found on our site.

下午好，感謝您今天加入我們討論 Stitch Fix 2023 財年第一季度的結果。今天和我一起參加電話會議的是 Stitch Fix 的首席執行官 Elizabeth Spaulding；和首席財務官 Dan Jedda。我們在我們網站 investors.stitchfix.com 的季度業績部分的新聞稿中發布了完整的 2023 年第一季度財務業績。也可以在我們的網站上找到指向今天電話會議網絡廣播的鏈接。

We would like to remind everyone that we will be making forward-looking statements on this call, which involve risks and uncertainties. Actual results could differ materially from those contemplated by our forward-looking statements. Reported results should not be considered as an indication of future performance. Please review our filings with the SEC for a discussion of the factors that could cause the results to differ. In particular, our press release issued and filed today as well as the Risk Factors section of our annual report on Form 10-K for our fiscal year 2022 previously filed with the SEC and the quarterly report on Form 10-Q for our first quarter of fiscal year 2023, which we expect to be filed tomorrow. Also note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements, except as required by law.

我們想提醒大家，我們將在本次電話會議上做出前瞻性陳述，這涉及風險和不確定性。實際結果可能與我們的前瞻性陳述中預期的結果存在重大差異。報告的結果不應被視為未來業績的指標。請查看我們提交給美國證券交易委員會的文件，以討論可能導致結果不同的因素。特別是，我們今天發布和提交的新聞稿以及我們之前向美國證券交易委員會提交的 2022 財年 10-K 表格年度報告的風險因素部分和我們第一季度的 10-Q 表格季度報告2023 財年，我們預計將於明天提交。另請注意，本次電話會議的前瞻性陳述是基於截至今天我們可獲得的信息。除非法律要求，否則我們不承擔任何更新任何前瞻性陳述的義務。

During this call, we will discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the press release on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call in its entirety is being webcast on our Investor Relations website, and a replay of this call will be available on the website shortly.

在這次電話會議中，我們將討論某些非 GAAP 財務指標。我們的投資者關係網站上的新聞稿中提供了與最直接可比的 GAAP 財務指標的對賬。這些非 GAAP 措施無意替代我們的 GAAP 結果。最後，此次電話會議的全部內容正在我們的投資者關係網站上進行網絡直播，該電話會議的重播將很快在網站上播出。

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

有了這個，我會把電話轉給伊麗莎白。

Thanks, Hayden. As we stated on last quarter's call, following a transformative year with the rollout of Freestyle, we began fiscal year 2023 with a clear focus on growing our client base and achieving profitability. As the macroeconomic environment continues to be uncertain, we are now further balancing the need to optimize our cost structure against achieving the long-term growth objectives of the business. We are confident in this approach and are determined to use this moment as a catalyst to create a leaner, more nimble and profitable Stitch Fix, while continuing to enhance the experience for our clients.

謝謝，海登。正如我們在上一季度的電話會議上所說，在 Freestyle 推出帶來變革的一年之後，我們在 2023 財年開始時明確關注擴大客戶群和實現盈利。由於宏觀經濟環境持續不明朗，我們現正進一步平衡優化成本結構與實現業務長期增長目標的需要。我們對這種方法充滿信心，並決心利用這一時刻作為催化劑，打造更精簡、更靈活、更有利可圖的 Stitch Fix，同時繼續提升我們客戶的體驗。

In fiscal Q1, the retail industry experienced a meaningful pull forward of the holiday promotional environment, which continues to be more pronounced than expected due to weak consumer sentiment and excess inventories. We believe this resulted in lower client spending and also had a large impact on our net active clients, which declined 11% year-over-year. Overall, Q1 net revenue declined 22% year-over-year to $455.6 million, which was at the low end of the range provided on the Q4 call. Despite this, we continue to deliver on operational efficiencies and cost control, which enabled us to beat our provided outlook on adjusted EBITDA at negative $7.4 million for the first quarter. Dan will provide more details on the quarter in his section.

在第一財季，零售業經歷了假期促銷環境的有意義的拉動，由於消費者信心疲軟和庫存過剩，這種拉動繼續比預期更為明顯。我們認為這導致客戶支出減少，並對我們的淨活躍客戶產生了重大影響，同比下降 11%。總體而言，第一季度淨收入同比下降 22% 至 4.556 億美元，處於第四季度電話會議提供的範圍的低端。儘管如此，我們繼續實現運營效率和成本控制，這使我們能夠在第一季度超過我們提供的調整後 EBITDA 預期為負 740 萬美元。 Dan 將在他的部分提供有關該季度的更多詳細信息。

Today, I will discuss our plan for the balance of 2023 in a few key areas: first, our focus on profitability and how we plan to further simplify our cost structure to create a more efficient operating model; second, how we continue to strengthen our client experience with an emphasis on our biggest differentiators of discovery, fit and human relationships; and lastly, how we are evolving our marketing strategy to reach our focus on engaging and reactivating the audiences that already know us.

今天，我將在幾個關鍵領域討論我們對 2023 年剩餘時間的計劃：首先，我們對盈利能力的關注以及我們計劃如何進一步簡化成本結構以創建更高效的運營模式；其次，我們如何繼續加強我們的客戶體驗，強調我們最大的發現、契合度和人際關係差異化因素；最後，我們如何改進我們的營銷策略，以專注於吸引和重新激活已經了解我們的受眾。

First, on our focus on profitability and a leaner operating model. On the last call, we said that we recognized returning to positive adjusted EBITDA and free cash flow was of the utmost importance. This remains our central focus, and the continued uncertain macro environment underscores the value of a leaner profitable business model that will allow us to adapt quickly in the future. As such, we are increasing our FY '23 cost reduction targets that we announced 2 quarters ago to $135 million from the $40 million to $60 million previously discussed.

首先，我們專注於盈利能力和更精簡的運營模式。在上次電話會議上，我們表示我們認識到調整後的 EBITDA 恢復正數和自由現金流至關重要。這仍然是我們的核心關注點，持續不確定的宏觀環境凸顯了更精簡的盈利商業模式的價值，這將使我們能夠在未來迅速適應。因此，我們將兩個季度前宣布的 FY '23 成本削減目標從之前討論的 4000 萬美元提高到 1.35 億美元至 6000 萬美元。

While much of the new reductions will come from advertising, which I will discuss more later on, we are also targeting more fixed and variable productivity in a number of areas. We recognize we need to operate the business more efficiently and focus on the areas most critical to move us forward in the current environment. We believe we can execute these initiatives while simultaneously enhancing our client experience and without compromising the long-term growth potential our highly differentiated business model presents.

雖然大部分新的減少將來自廣告，我將在稍後詳細討論，但我們也在許多領域瞄準更固定和可變的生產力。我們認識到我們需要更有效地運營業務，並專注於在當前環境中推動我們前進的最關鍵領域。我們相信，我們可以執行這些舉措，同時提升我們的客戶體驗，同時不會損害我們高度差異化的業務模式所帶來的長期增長潛力。

To reinforce, our biggest focus is on achieving profitability. That said, we do want to give you an understanding of what we are working on in the background that is foundational to further enhancing our client experience. Our clients choose Stitch Fix to find items they would not have otherwise found for themselves for the tremendous convenience our styling service provides and for the personalization we deliver in client style and fit. We are the leaders in providing personalized styling support through our fixed model, which together with Freestyle's on-demand styling features like Shop Your Looks and Trending For You drive higher conversion and lower return rates relative to traditional e-commerce retail.

為了加強，我們最大的重點是實現盈利。也就是說，我們確實想讓您了解我們在後台所做的工作，這是進一步提升我們客戶體驗的基礎。我們的客戶選擇 Stitch Fix 來尋找他們無法通過其他方式為自己找到的物品，因為我們的造型服務提供了極大的便利，也因為我們以客戶風格和合身性提供的個性化服務。我們是通過我們的固定模型提供個性化造型支持的領導者，與 Freestyle 的按需造型功能（如 Shop Your Looks 和 Trending For You）相結合，相對於傳統電子商務零售而言，可以提高轉化率並降低退貨率。

Knowing this, there are 2 specific areas of opportunity we are focused on enhancing to grow and retain our net active client base, making it easier to enter our ecosystem and ensuring our clients feel consistently heard and served in a personalized way to keep them coming back again and again. In terms of entering our ecosystem, we made progress in the first quarter testing a new outreach strategy to a large number of signed up prospects who have not yet purchased from us, which increased conversion by 30% over last quarter. We are also working on faster sign-up processes and more personalized search-based landing pages to continue to make it easier for clients to get started with Stitch Fix.

知道這一點後，我們專注於加強 2 個特定的機會領域，以擴大和保留我們的淨活躍客戶群，使其更容易進入我們的生態系統，並確保我們的客戶始終以個性化的方式獲得傾聽和服務，以保持他們的回頭率一次又一次。在進入我們的生態系統方面，我們在第一季度取得了進展，針對大量尚未向我們購買的已簽約潛在客戶測試了一項新的外展策略，這比上一季度增加了 30% 的轉化率。我們還在努力開發更快的註冊流程和更個性化的基於搜索的登錄頁面，以繼續讓客戶更輕鬆地開始使用 Stitch Fix。

In terms of feeling heard and served in a personalized way to keep clients coming back again and again, we see clear opportunities to improve client retention at critical moments with fixed preview and fixed checkout. For example, we know that when clients keep at least 1 item and are looking forward to their next fix, they are likely to have multiple future fixes. The inverse is also true. If a client buys 0 items in their first fix, they're 3x as likely to cancel their auto shift than clients who bought 1 item.

在以個性化的方式讓客戶一次又一次地回頭客的感覺和服務方面，我們看到了通過固定預覽和固定結賬在關鍵時刻提高客戶保留率的明顯機會。例如，我們知道，當客戶保留至少 1 件物品並期待他們的下一次修復時，他們很可能會在未來進行多次修復。反之亦然。如果客戶在第一次修復時購買了 0 件商品，那麼他們取消自動換班的可能性是購買 1 件商品的客戶的 3 倍。

Given the criticality of these moments, we are testing multiple new ways for richer interaction and listening, both before clients receive their fix as well as when they share feedback if we haven't hit the mark. One test underway includes stylist experts contacting first-time clients who purchased 0 items to get to know our clients better and to proactively suggest replacement items from Freestyle for the client so that we can get it right. We expect this higher level of personal touch and communication will be meaningful in improving client happiness and ultimately improve retention.

鑑於這些時刻的關鍵性，我們正在測試多種新的方式來進行更豐富的互動和傾聽，無論是在客戶收到他們的解決方案之前，還是在他們分享反饋（如果我們沒有達到目標）時。正在進行的一項測試包括造型師專家聯繫首次購買 0 件商品的客戶，以更好地了解我們的客戶，並主動為客戶建議 Freestyle 的替換商品，以便我們能夠正確處理。我們預計這種更高水平的個人接觸和溝通將對提高客戶幸福感並最終提高保留率有意義。

And lastly, we are evolving our marketing strategy to increase our focus on engaging and reactivating the audiences that already know us while continuing to lean into new acquisition channels. This is a critical step towards increasing profitability as we will reduce marketing spend in the back half of the year. As a business, we have relied on digital performance-based channels and lower funnel spending on client prospects. While these channels did and still prove to be successful, they are now less efficient than they once were. In addition, we have a pool of over 10 million consumers that have already interacted with us but have not recently or ever made a purchase that we can more directly target to bring back into our ecosystem.

最後，我們正在改進我們的營銷策略，以更加專注於吸引和重新激活已經了解我們的受眾，同時繼續傾向於新的獲取渠道。這是提高盈利能力的關鍵一步，因為我們將在今年下半年減少營銷支出。作為一家企業，我們一直依賴基於數字績效的渠道，並降低對潛在客戶的漏斗支出。雖然這些渠道曾經並且仍然被證明是成功的，但它們現在的效率已不如從前。此外，我們擁有超過 1000 萬消費者，他們已經與我們進行過互動，但最近或從未進行過購買，我們可以更直接地將其帶回我們的生態系統。

Recent testing showed the cost per acquisition for reengagement of this pool is significantly less than prospective clients who have never interacted with us. Our experience has continued to evolve, and we want to reach those clients who already know us and help them rediscover their love for Stitch Fix. In addition, we're continuing to expand our underpenetrated marketing channels, such as affiliates, influencers and SEO, SEM, which will take time to develop into meaningful contributors but will be important over time for new customer acquisitions.

最近的測試表明，與從未與我們互動過的潛在客戶相比，重新參與該池的每次獲取成本要低得多。我們的體驗在不斷發展，我們希望接觸那些已經了解我們的客戶，幫助他們重新發現對 Stitch Fix 的熱愛。此外，我們正在繼續擴大我們未充分滲透的營銷渠道，例如附屬公司、影響者和 SEO、SEM，這需要時間才能發展成為有意義的貢獻者，但隨著時間的推移對於新客戶的獲取將很重要。

In summary, we remain confident in our unique and differentiated business model and the long-term opportunity ahead of us, and we are adapting to meet the moment in these uncertain times. By focusing on these things within our control, we will continue to set ourselves up to achieve adjusted EBITDA and free cash flow positivity in the near term while maximizing our long-term potential.

總之，我們對我們獨特和差異化的商業模式以及我們面前的長期機遇充滿信心，我們正在適應這些不確定時期的時刻。通過專注於我們控制範圍內的這些事情，我們將繼續努力在短期內實現調整後的 EBITDA 和自由現金流正數，同時最大限度地發揮我們的長期潛力。

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

有了這個，我會把電話轉給丹。

Thank you, Elizabeth, and hello to everyone on the call. Q1 net revenue declined 22% year-over-year to $455.6 million, which came in at the low end of our guidance due to lower net active clients and a pull forward of holiday-related promotions across the industry. The deep discounting the industry has experienced well in advance of the normal holiday season particularly impacted October Freestyle revenue.

謝謝你，伊麗莎白，向通話中的每個人問好。第一季度淨收入同比下降 22% 至 4.556 億美元，處於我們指引的低端，原因是淨活躍客戶減少以及整個行業假期相關促銷活動的推進。該行業在正常假期之前就經歷了大幅折扣，尤其影響了 10 月的自由泳收入。

Adjusted EBITDA for the quarter came in at negative $7.4 million, which was above our outlook largely due to effective cost controls as we continue to drive towards our goal of positive adjusted EBITDA and free cash flow.

本季度調整後的 EBITDA 為負 740 萬美元，高於我們的預期，這主要是由於有效的成本控制，因為我們繼續朝著調整後 EBITDA 和自由現金流為正的目標邁進。

Net active clients in the quarter declined 11% year-over-year to $3.7 million. While this was an improvement from the sequential loss from Q3 to Q4 of last year, net active clients were lower than what we expected at the onset of the quarter.

本季度的淨活躍客戶同比下降 11% 至 370 萬美元。雖然這比去年第三季度到第四季度的連續虧損有所改善，但淨活躍客戶低於我們在本季度初的預期。

While we are seeing an increase in new active customers, we continue to see a high number of customers delaying spending partially due to the macro environment. Revenue per active client was approximately flat year-over-year at $525. However, our analysis does show that clients are spending less across a broad set of cohorts, and we expect this to continue given the economic backdrop and the deep discounting we are seeing in the retail industry.

雖然我們看到新的活躍客戶有所增加，但我們繼續看到大量客戶部分由於宏觀環境而推遲支出。每個活躍客戶的收入同比基本持平，為 525 美元。然而，我們的分析確實表明，客戶在廣泛人群中的支出正在減少，鑑於經濟背景和我們在零售業看到的大幅折扣，我們預計這種情況將持續下去。

Q1 gross margin came in as expected at 42.1%, down 490 basis points year-over-year, driven primarily by higher product costs, higher clearance and unfavorable transportation costs year-over-year. Sequentially, gross margin was up 210 basis points from Q4 due mostly to improved inventory reserves. We continue to believe gross margin will be approximately 42% throughout the rest of FY '23.

第一季度毛利率符合預期，為 42.1%，同比下降 490 個基點，主要原因是產品成本上升、清關率上升以及運輸成本同比下降。環比而言，毛利率較第四季度上升 210 個基點，這主要歸功於庫存儲備的改善。我們繼續相信，在整個 23 財年的剩餘時間裡，毛利率將約為 42%。

Advertising was 9% of revenue in the quarter. For the remainder of the year, we expect advertising as a percent of revenue to be lower than our historic rate due to the marketing shift Elizabeth discussed. We will be laser-focused on spending advertising dollars where we see near-term positive ROI, and we'll continue to build out new marketing channels. For the remainder of this year, we expect advertising to be approximately 5% to 6% of revenue, but we'll continue to evaluate our advertising spend to ensure we are managing to the right return on investment.

廣告佔本季度收入的 9%。在今年剩餘時間裡，由於伊麗莎白討論的營銷轉變，我們預計廣告佔收入的百分比將低於我們的歷史水平。我們將專注於在我們看到近期正投資回報率的地方花費廣告資金，並且我們將繼續建立新的營銷渠道。在今年剩餘時間裡，我們預計廣告將佔收入的 5% 到 6% 左右，但我們將繼續評估我們的廣告支出，以確保我們設法獲得正確的投資回報。

Net inventory grew 20% year-over-year due to higher receipt volume. We did expect this higher inventory given our long lead times from order placement to receipt of inventory. We aggressively adjusted our binding in Q4 of last year, and we expect inventory to come down sequentially in Q2 and continue to decline in the second half of the year.

由於收貨量增加，淨庫存同比增長 20%。鑑於我們從下訂單到收到庫存的交貨時間很長，我們確實預計會有更高的庫存。我們在去年四季度積極調整了我們的綁定，我們預計庫存將在二季度環比下降，並在下半年繼續下降。

Free cash flow for the quarter was negative $16 million, and we ended the quarter with $209 million in cash, cash equivalents and highly rated securities.

本季度的自由現金流為負 1600 萬美元，本季度末我們擁有 2.09 億美元的現金、現金等價物和高評級證券。

Now on to our outlook. The challenging economic environment increases uncertainty around the trajectory of net actives and, therefore, revenue as we look forward. We know that high rates of inflation are impacting consumer purchases and high levels of inventory are impacting pricing with deeper discounting across the retail industry.

現在談談我們的展望。充滿挑戰的經濟環境增加了淨活動軌蹟的不確定性，因此增加了我們預期的收入。我們知道，高通貨膨脹率正在影響消費者的購買，高水平的庫存正在影響定價，整個零售行業的折扣力度更大。

Additionally, we are reducing our advertising spend amidst a very promotional holiday season. In these times, we are less certain how the revenue story plays out for the rest of the year, and so our goal continues to be managing our overall costs while continuing to focus on improving our client experience, with the goal of becoming adjusted EBITDA and free cash flow positive in the near term.

此外，我們正在節假日期間減少廣告支出。在這些時候，我們不太確定今年剩餘時間的收入情況如何，因此我們的目標繼續是管理我們的總體成本，同時繼續專注於改善我們的客戶體驗，目標是調整後的 EBITDA 和短期內自由現金流為正。

In light of this backdrop, we anticipate revenues to be between $410 million and $420 million for Q2 as we continue to see pressure on net active clients and expect the holiday promotional environment to continue throughout the end of the quarter. We expect adjusted EBITDA for the quarter to be between negative $5 million and positive $5 million, primarily reflecting our ongoing cost structure efforts and a reduced level of advertising spend.

鑑於這種背景，我們預計第二季度的收入將在 4.1 億美元至 4.2 億美元之間，因為我們繼續看到淨活躍客戶面臨壓力，並預計假期促銷環境將持續到本季度末。我們預計本季度調整後的 EBITDA 將在負 500 萬美元和正 500 萬美元之間，這主要反映了我們正在進行的成本結構努力和廣告支出水平的降低。

Given our current visibility around our marketing and retention efforts and balancing the uncertainty in this challenging backdrop, we are lowering our full year FY '23 revenue guide to be between $1.6 billion and $1.7 billion. This assumes no material change in the current competitive landscape and macro environment from where we are -- where we see it today. Despite this, we are raising our outlook on adjusted EBITDA for the year to be between negative $10 million and positive $10 million, reflecting our reduced advertising levels and ongoing cost management initiatives.

鑑於我們目前對我們的營銷和保留工作的可見性以及在這種充滿挑戰的背景下平衡不確定性，我們將 23 財年的全年收入指南下調至 16 億美元至 17 億美元之間。這是假設當前的競爭格局和宏觀環境與我們今天所處的位置沒有實質性變化。儘管如此，我們還是將今年調整後的 EBITDA 預期提高到負 1000 萬美元到正 1000 萬美元之間，這反映了我們降低的廣告水平和持續的成本管理舉措。

Before we turn it over to Q&A, I want to remind everyone that even at current levels, our unit and order economics continue to be strong, with contribution profit, excluding advertising, in the range of 25% to 30%. We know there is further opportunity to improve both fixed and variable costs, and therefore, we see an opportunity to increase our contribution margin in addition to improving fixed leverage.

在進入問答環節之前，我想提醒大家，即使在目前的水平上，我們的單位和訂單經濟仍然強勁，貢獻利潤（不包括廣告）在 25% 到 30% 的範圍內。我們知道還有進一步改善固定和可變成本的機會，因此，除了改善固定槓桿之外，我們還看到了增加邊際貢獻的機會。

In the meantime, we will continue to focus on the things we can control, deepening our differentiation, improving our client experience and rightsizing our overall cost structure, all with a focus on near-term positive adjusted EBITDA and free cash flow. Doing this sets us up to be in a strong position, producing healthy and profitable leverage as the economy improves and for a return to growth.

與此同時，我們將繼續專注於我們可以控制的事情，深化我們的差異化，改善我們的客戶體驗並調整我們的整體成本結構，所有這些都將重點放在近期積極的調整後 EBITDA 和自由現金流上。這樣做使我們處於強勢地位，隨著經濟的改善和恢復增長而產生健康和有利可圖的槓桿作用。

With that, I'll turn the call over to the operator for Q&A.

有了這個，我會把電話轉給接線員進行問答。

(Operator Instructions) And our first question comes from the line of Youssef Squali with Truist.

（操作員說明）我們的第一個問題來自 Youssef Squali 與 Truist 的對話。

So just a couple of questions from me. One, on the last earnings call, you guys talked a little bit about some of the new product enhancements, personalization features, efforts that you guys were doing to drive engagement and improve the user experience. You also had a brand campaign that was launched, if I remember correctly, in mid-September. Can you just speak to, one, the efforts you're making? Where are you there? Second, how the campaign did relative to your own expectations. And then broadly speaking, how are you kind of positioned for the rest of the year from kind of an inventory standpoint? Where would you like inventory to be at the end of the year?

所以我只有幾個問題。第一，在上次財報電話會議上，你們談到了一些新產品增強功能、個性化功能，以及你們為推動參與和改善用戶體驗所做的努力。如果我沒記錯的話，你還發起了一場品牌宣傳活動，時間是在 9 月中旬。你能談談，一個，你正在做的努力嗎？你在哪裡？其次，該活動相對於您自己的期望如何。然後從廣義上講，從庫存的角度來看，您對今年剩餘時間的定位如何？您希望年底的庫存在哪裡？

Thanks, Youssef. I can take the first part of that, and then I'll let Dan speak to our inventory position. On the customer experience, I think I alluded to some of this on the call, but we're pleased with the progress that we're making on clients entering our user experience. That was an area that we've been focused on over the last several quarters, and we're significantly off our lows and new client conversion, which gives us confidence that we're doing the right things to create an even more seamless entry into new to Stitch Fix customers, and that's starting to pay dividends.

謝謝，優素福。我可以做第一部分，然後讓 Dan 談談我們的庫存狀況。關於客戶體驗，我想我在電話中提到了其中的一些內容，但我們對我們在客戶進入我們的用戶體驗方面取得的進展感到滿意。這是我們在過去幾個季度一直關注的領域，我們已經大大擺脫了低谷和新客戶轉化，這讓我們相信我們正在做正確的事情來創造一個更加無縫的進入Stitch Fix 客戶的新手，並且開始帶來紅利。

We did things like improved our dynamic landing pages, depending on where clients were coming from, including some improvements to the style quiz. And we've begun to experiment with what we're really featuring and talking about in terms of how it works in the Stitch Fix experience and sort of the unique differentiators of our styling experience. And we're leaning into further improvements on that as we enter Q2 with things like delaying our e-mail capture, onetime login, just areas that we're very aware of that create friction. So pleased with the progress that we're making and continuing to focus on doing more there.

我們做了一些事情，比如改進我們的動態登陸頁面，這取決於客戶來自哪裡，包括對風格測驗的一些改進。我們已經開始試驗我們真正的特色和談論的內容，包括它在 Stitch Fix 體驗中的工作方式以及我們造型體驗的獨特差異化因素。當我們進入第二季度時，我們傾向於進一步改進，比如延遲我們的電子郵件捕獲、一次性登錄，這些都是我們非常清楚會產生摩擦的領域。對我們正在取得的進展感到非常高興，並繼續專注於在那裡做更多的事情。

More broadly, within the user experience, I also had mentioned these kind of critical moments of truth within fixed preview as well as within the checkout experience. And so we've made a number of improvements on how we're surfacing inventory to our clients. I mentioned fixed preview. That one we're a little bit -- that, as we launched and rolled that out over time, increased our overall AOV and retention as we rolled that out a year or 2 ago. We now see kind of the next wave of improvements of client listening and learning, and we're eager to dive in there. We like what we're seeing in these very early tests, but we've yet to scale them and more to come over the coming quarters.

更廣泛地說，在用戶體驗中，我還在固定預覽和結賬體驗中提到了這些關鍵的關鍵時刻。因此，我們對向客戶展示庫存的方式進行了多項改進。我提到了固定預覽。我們有點——隨著時間的推移我們推出並推出它，我們在一兩年前推出它時增加了我們的整體 AOV 和保留率。我們現在看到了客戶傾聽和學習的下一波改進浪潮，我們渴望深入其中。我們喜歡我們在這些非常早期的測試中看到的東西，但我們還沒有擴展它們，而且在接下來的幾個季度還會有更多。

And then kind of related to the -- those landing pages and how we're educating consumers, that's a good bridge into your question on the brand campaign, that was the first time we had done a campaign that was consistent across the U.K. and the U.S. and really focused on an always on messaging around how it works and really educating consumers on the unique differentiators. And so the consumer qualitative feedback that we've received from that is strong. We like what we're hearing in terms of consumer appreciation of the value proposition. We also saw some improvements in organic traffic conversion that we think could be attributed to the relevance of that campaign. It's something that we imagine kind of being layered within how our influencers are talking about Stitch Fix, how we talk at -- within TVE and OTT. So it's something that we anticipate we will build on in the future and is part of really conveying our unique value proposition.

然後有點相關 - 那些登陸頁面以及我們如何教育消費者，這是一個很好的橋樑，可以回答您關於品牌活動的問題，這是我們第一次在英國和美國開展一致的活動美國和真正專注於始終圍繞其運作方式進行信息傳遞，並真正教育消費者了解獨特的差異化因素。因此，我們從中收到的消費者定性反饋很強。我們喜歡我們聽到的消費者對價值主張的欣賞。我們還看到了有機流量轉化的一些改進，我們認為這可能歸因於該活動的相關性。這是我們想像的東西，在我們的影響者如何談論 Stitch Fix，我們如何談論 - 在 TVE 和 OTT 中。因此，這是我們預計我們將在未來發展的東西，也是真正傳達我們獨特價值主張的一部分。

I will let Dan touch on the inventory position question.

我會讓 Dan 談談庫存位置問題。

On inventory, as we mentioned in the prior call, we did expect us to increase inventory, and we did expect this quarter the $220 million to be the peak. And we are seeing that decrease throughout November and even through the first week of December. So the trajectory is right where we expected. We will be lower in Q2. We're going to continue to be lower in Q3 and Q4 sequentially because we have rightsized our buying for the second half of the year. So that inventory will go down, and I suspect it will be negative on a year-on-year basis in the back half of the year.

在庫存方面，正如我們在之前的電話會議中提到的那樣，我們確實預計我們會增加庫存，我們確實預計本季度 2.2 億美元將達到頂峰。我們看到整個 11 月甚至 12 月的第一周都在下降。所以軌跡就在我們預期的地方。我們將在第二季度降低。我們將在第三季度和第四季度連續走低，因為我們已經調整了今年下半年的購買規模。這樣庫存就會下降，我懷疑今年下半年同比會出現負數。

And our next question comes from the line of Simeon Siegel with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Simeon Siegel。

I was hoping you could give any color on gross versus net adds maybe in active clients this quarter. And then if I heard it correctly, and apologies if I didn't, I was hoping you could elaborate a little bit on the comment about consumers having choice where to shop impacting the net adds. I guess that sounds a little bit more typical for traditional retail. So I guess you guys had been maybe insulated given the loyal fixed shoppers. So are you seeing a pivot in the existing base or the customer approach to your company? And if the active client positioning is now competing against traditional retailers, does that change how you focus on running and forecasting the business? And again, if I've mistaken it or misheard, I apologize.

我希望你能在本季度的活躍客戶中給出毛增與淨增的任何顏色。然後，如果我沒聽錯，我很抱歉，如果我沒有聽錯，我希望你能詳細說明一下關於消費者可以選擇在哪裡購物影響淨增加的評論。我想這對於傳統零售業來說聽起來更典型一些。所以我想你們可能已經被隔離了，因為有忠實的固定購物者。那麼，您是否看到現有基礎或客戶方法對貴公司的影響？如果主動客戶定位現在正在與傳統零售商競爭，這是否會改變您專注於運營和預測業務的方式？再一次，如果我弄錯了或聽錯了，我深表歉意。

Yes. Thanks, Simeon. I can start, and Dan, feel free to chime in as well. So on the gross versus net adds, I think Dan touched on that where we did see an increase in clients in our gross add quarter-on-quarter, so Q1 versus Q4. That said, we also saw an increase in clients who haven't shopped with us in 12 months plus, and that is something I think we attribute in part to the macro environment and just to pull back that overall, I think the category is seeing in retail spending.

是的。謝謝，西蒙。我可以開始了，Dan，也可以隨意插話。因此，關於總增幅與淨增幅，我認為 Dan 提到了我們確實看到客戶的總增幅環比有所增加，因此第一季度與第四季度相比。也就是說，我們還看到在 12 個月多的時間裡沒有在我們這裡購物的客戶有所增加，我認為這部分歸因於宏觀環境，只是為了拉回整體，我認為該類別正在看到在零售支出方面。

We believe that a lot of the efforts that we're focused on in terms of retaining clients longer, improving the experience, reactivating clients, some of what I talked about on the marketing front, all will be important in terms of driving improvements over time. The competition with traditional retail, I think what we were referring to there is quarter-on-quarter, we did see increases in things like our AOV and our average unit retails. That said, we did see softness in Freestyle relative to what we would have anticipated.

我們相信，我們在更長時間地留住客戶、改善體驗、重新激活客戶方面所做的很多努力，以及我在營銷方面談到的一些內容，對於隨著時間的推移推動改進而言都是很重要的.與傳統零售的競爭，我認為我們所指的是季度環比，我們確實看到了 AOV 和平均單位零售等方面的增長。也就是說，相對於我們的預期，我們確實看到了 Freestyle 的柔軟度。

And we could see, as we compared it to a lot of the pull forward in the promotional calendars of other players in the space, that we were impacted by some of those promotional offers that happened August, September, just far earlier than we typically would have seen. And then I think Dan mentioned the cohort-to-cohort spending. Our consumers are telling us that in this macro environment, that they're just being more judicious with their spending. And so while our keep rates and our average order values are holding steady, we are seeing some stretching out of frequency and stretching out of those Freestyle purchases.

我們可以看到，當我們將它與該領域其他參與者的促銷日曆中的許多提前進行比較時，我們受到了 8 月、9 月發生的一些促銷優惠的影響，比我們通常會早得多看到。然後我認為 Dan 提到了隊列到隊列的支出。我們的消費者告訴我們，在這種宏觀環境下，他們只是在花錢時更加審慎。因此，雖然我們的保持率和平均訂單價值保持穩定，但我們看到一些超出頻率和超出那些 Freestyle 購買的延伸。

So we still believe we are very unique in our core value proposition. We compete on things like discovery and fit and human relationships. That said, I think Freestyle, in particular, is probably more impacted by really, really promotional environment, which we saw in particular in that August, September, October time frame.

所以我們仍然相信我們的核心價值主張非常獨特。我們在發現、適應和人際關係等方面展開競爭。也就是說，我認為特別是 Freestyle 可能更受真正、真正的促銷環境的影響，我們在 8 月、9 月和 10 月的時間框架內尤其看到了這種環境。

Got it. That's very helpful. And then just, Elizabeth, maybe just a follow-up on that comment you made about the quarter-over-quarter ASP. How was the year-over-year ASP this quarter?

知道了。這很有幫助。然後，伊麗莎白，也許只是對你對季度平均售價的評論的後續行動。本季度的同比平均售價如何？

Yes. I think quarter-over-quarter, we saw a few percentage points increase on AOV and similarly on an ASP basis. In part, I think ASP was over 10% up. Part of that is seasonal. We do see it leaning into outerwear and goods that are slightly higher priced. But overall, I mean we saw health, I would say, in general within our AOVs and average unit retail. I think it's more maybe a frequency of spending that we saw more of a pullback.

是的。我認為與上一季度相比，我們看到 AOV 和 ASP 的基礎上有幾個百分點的增長。在某種程度上，我認為 ASP 上漲了 10% 以上。其中一部分是季節性的。我們確實看到它偏向於價格略高的外套和商品。但總的來說，我的意思是我們在 AOV 和平均單位零售中總體上看到了健康。我認為更多的可能是我們看到更多回調的支出頻率。

And our next question comes from the line of Mark Altschwager with R. W. Baird.

我們的下一個問題來自 Mark Altschwager 和 R. W. Baird 的台詞。

With respect to the shift in marketing strategy, is this a temporary shift in the current macro? Or what are the proof points that you want to see in the transformation to give you confidence to more aggressively go after the TAM of consumers who haven't engaged with the platform before?

關於營銷策略的轉變，這是否是當前宏觀的暫時轉變？或者，您希望在轉型中看到哪些證據，讓您有信心更積極地追逐以前從未使用過該平台的消費者的 TAM？

Yes. Thanks, Mark. I would say it is in part a response to the environment but also a really strong belief that really happy clients and reactivating clients are some of our best channels for marketing and believing there's opportunity to further expand those in addition to the areas of TAM expansion into some of these new marketing channels that we've just historically been underpenetrated.

是的。謝謝，馬克。我想說這在一定程度上是對環境的回應，但也是一種非常堅定的信念，即真正快樂的客戶和重新激活客戶是我們最好的營銷渠道之一，並且相信除了 TAM 擴展到的領域之外，還有機會進一步擴展這些渠道其中一些新的營銷渠道我們在歷史上一直未被充分滲透。

One thing I think we were very deliberate about, and I think Dan mentioned this in his remarks, as did I, is just being very focused on near-term positive ROI. And so I think what we really work through is just being more deliberate and really raising the bar of our payback thresholds, which we're always very disciplined. We just essentially made the decision given the ambition of free cash flow positivity, EBITDA positivity and just what we're seeing in the macro backdrop to be even more disciplined in terms of those payback periods.

我認為我們非常深思熟慮的一件事，我認為丹在他的評論中提到了這一點，就像我一樣，只是非常關注近期的積極投資回報率。所以我認為我們真正要做的只是更加深思熟慮，真正提高我們的投資回報門檻，我們一直非常有紀律。鑑於自由現金流的積極性、EBITDA 的積極性以及我們在宏觀背景下看到的在這些投資回收期方面更加嚴格的情況，我們基本上做出了這個決定。

We're also using it as an opportunity to go even faster at really doubling down on opportunities to reactivate clients that have loved us in the past. That pool and that opportunity has obviously grown over time as we become a more mature business. And so Dan mentioned the 5% to 6%. That's our best view for the full year, but we'll learn over the next few quarters. And based on the paybacks we're seeing, we may opt to spend more as we go forward. But it's not a permanent shift. It's more let's learn into this and be even more disciplined on paybacks in the near term.

我們還利用它作為一個機會，更快地真正加倍努力重新激活過去愛過我們的客戶。隨著我們成為一家更加成熟的企業，這個資源庫和那個機會顯然隨著時間的推移而增長。所以 Dan 提到了 5% 到 6%。這是我們對全年的最佳看法，但我們將在接下來的幾個季度中學習。根據我們看到的回報，我們可能會選擇在未來花費更多。但這不是永久性的轉變。更重要的是讓我們了解這一點，並在近期內對回報更加嚴格。

And then a follow-up on Freestyle. Does it make sense that the heavily promotional backdrop would impact engagement there? What are you doing or what can you do to kind of manage your competitive position in such a dynamic price environment?

然後是 Freestyle 的跟進。大量促銷背景會影響那裡的參與度是否有意義？在這樣一個動態的價格環境中，您正在做什麼或可以做什麼來管理您的競爭地位？

Yes. It's a great question. I mean I think we're very focused on, first of all, just continuing to invest in our biggest differentiators, things like outfitting, things like focusing on new arrivals that are most relevant to each of our clients. Part of what we're hearing from consumers is making more value out of the wardrobe that they already have. And we know that our output-based feed showing new arrivals in the context of outfits is highly converting.

是的。這是一個很好的問題。我的意思是我認為我們非常專注於，首先，只是繼續投資於我們最大的差異化因素，比如服裝，比如關注與我們每個客戶最相關的新來者。我們從消費者那裡聽到的部分內容是從他們已有的衣櫥中獲得更多價值。而且我們知道，我們基於輸出的提要在服裝背景下顯示新品的轉化率很高。

One example recently is, we do a new outfits e-mail every week. We added dynamic content that's one-to-one for each consumer that shows them how to wear items from new arrivals that's bespoke to each client, and we saw a 30% increase in conversion rate on those e-mails. So part of our strategy, I think, is just being more relevant and differentiated on the things that make us special and relevant week to week and moment.

最近的一個例子是，我們每週都會發送一封新服裝電子郵件。我們為每個消費者添加了一對一的動態內容，向他們展示如何穿著為每個客戶定制的新品，我們發現這些電子郵件的轉化率提高了 30%。因此，我認為，我們戰略的一部分只是在讓我們每周和每時每刻都變得特別和相關的事情上變得更加相關和差異化。

I think the other is we never really had any sort of limited time offer, clearance valves, pre-Freestyle. So over the course of this year, we have been experimenting with episodic events that we feel like meet the moment within the promotional calendar, roughly, I would say, around once a quarter. But our goal is not to become a promotional retailer, but to really deliver value on these differentiators of discovery, fit, human relationship and really focus there first and foremost while also recognizing Freestyle creates an opportunity to map more fully to the retail calendar and be relevant with what consumers are seeing.

我認為另一個是我們從來沒有真正提供過任何限時優惠，間隙閥，自由式預賽。因此，在今年的整個過程中，我們一直在嘗試在促銷日曆中遇到我們認為適合的時刻，大致上，我會說，大約每季度一次。但我們的目標不是成為促銷零售商，而是真正在發現、合身、人際關係等這些差異化因素上實現價值，並真正首先關注這些，同時認識到 Freestyle 創造了一個機會，可以更充分地映射到零售日曆並成為與消費者所看到的相關。

And our next question comes from the line of Edward Yruma with Piper Sandler.

我們的下一個問題來自 Edward Yruma 和 Piper Sandler 的台詞。

I guess, first, it's a bigger picture question and making sure we are framing this correctly. Are you effectively saying that until the environment becomes less promotional, that you're going to kind of trade off net adds for profitability? And are we fair to assume that until that changes, that net adds will remain negative?

我想，首先，這是一個更大的問題，並確保我們正確地構建它。你是不是在有效地說，在環境變得不那麼促銷之前，你會為了盈利而犧牲淨增加？我們是否可以公平地假設，直到這種情況發生變化，淨增加將保持負數？

And then as a follow-up, as you think about the promotional environment staying particularly prolonged, I know that you're obviously not in the percent off game or coupon game, but are there other ways you can drive a stronger price value relationship if that's what the consumer ends up pivoting towards?

然後作為後續行動，當你想到促銷環境會持續特別長時間時，我知道你顯然不在打折遊戲或優惠券遊戲中，但如果這就是消費者最終轉向的方向？

Yes. Thank you, Ed. On the first point, in terms of where we're focused, I think both Dan and I emphasized that, that first and foremost, this return to free cash flow positivity and EBITDA profitability is our main focus. So we are very much emphasizing that. And I would say, given the current macro environment and then this deliberate and intentional decision to pull back on marketing spend for the focus of being very near-term ROI positive, we're not predicting a return to inflecting that sequential net active client base this year.

是的。謝謝你，埃德。關於第一點，就我們的關注點而言，我認為丹和我都強調，首先也是最重要的是，回歸自由現金流正和 EBITDA 盈利能力是我們的主要關注點。所以我們非常強調這一點。我要說的是，鑑於當前的宏觀環境，以及這種為了獲得非常近期的投資回報率正數而有意削減營銷支出的決定，我們預計不會回歸到影響連續的淨活躍客戶群今年。

That said, all of the things that we're working on that I talked about in the background, both the client experience to improve retention, adapting our focus on marketing to do more with the clients that already know us, we believe really sets us up for healthy client growth in the future, particularly as the economy improves. So I would say we're very focused on profitability together with the most critical places of our customer experience.

也就是說，我在後台談到的所有我們正在做的事情，包括提高保留率的客戶體驗，調整我們對營銷的關注以與已經了解我們的客戶做更多的事情，我們相信這真的讓我們為未來健康的客戶增長做好準備，特別是隨著經濟的改善。所以我想說我們非常關注盈利能力以及我們客戶體驗中最關鍵的地方。

And then on the promo environment, we have always had our buy 5 discount within the Fix offering, which we know delivers value to clients. We have our Style Pass offering for customers that have kept over 10 items where we offer them essentially unlimited fixes. Those are places that we see as a jumping off point for the expansion of our loyalty program over time.

然後在促銷環境中，我們一直在 Fix 產品中提供購買 5 的折扣，我們知道這可以為客戶帶來價值。我們為保留了 10 件以上物品的客戶提供 Style Pass 產品，我們為他們提供基本上無限的修復。我們將這些地方視為隨著時間的推移擴展我們的忠誠度計劃的起點。

Nothing to announce there yet, but that is on our road map to deliver value to our customers really across what we now know is such a compelling ecosystem between Fix and Freestyle and, to some extent, an untapped opportunity to really bring all of those elements together in a more systematic program. So we definitely see something there down the road. Nothing specific to announce just yet in terms of timing.

目前還沒有什麼可宣布的，但這已經在我們的路線圖上，通過我們現在所知道的 Fix 和 Freestyle 之間如此引人注目的生態系統，真正為我們的客戶提供價值，並且在某種程度上，這是一個真正帶來所有這些元素的未開發機會一起在一個更系統的程序中。所以我們肯定會在路上看到一些東西。就時間而言，目前尚無具體要宣布的內容。

And our next question comes from the line of David Bellinger with MKM Partners.

我們的下一個問題來自 David Bellinger 與 MKM Partners 的合作。

So first one on the revenue guidance for the year. So Q1 fell within your range, albeit towards the lower end. So did you see trends slow materially towards the end of Q1 and so far into Q2? And have you subsequently adjusted each quarter of the year down further since then? Just how should we think about the change in the pace of which it took shape in terms of the revenue guidance for the year?

所以第一個關於今年的收入指導。所以 Q1 落在您的範圍內，儘管接近下端。那麼，您是否看到趨勢在第一季度末和第二季度明顯放緩？從那時起，您隨後是否進一步下調了一年中的每個季度？我們應該如何看待它在今年的收入指導方面形成的步伐變化？

Yes, I'll take that one. We did see, as we mentioned, some impact of the deep discounting in the retail industry, which impacted our October sales, which was the last month of the quarter. And on a go-forward basis, how we're looking at the revenue guide is a function of what we saw in the holiday period and the deep discounting and expecting the macro environment to continue as is, but also taking into account some of the marketing initiatives that we've talked earlier in the call. So the way I would think about that guide going forward is it's more of a similar change on a year-on-year basis for the rest of the quarters as it is with Q1 just given that the guide that we gave of the negative $1.6 billion to $1.7 billion for full year revenue.

是的，我會拿那個。正如我們所提到的，我們確實看到了零售業大幅折扣的一些影響，這影響了我們 10 月份的銷售額，這是本季度的最後一個月。在前進的基礎上，我們如何看待收入指南取決於我們在假期期間看到的情況以及深度貼現和預期宏觀環境將繼續保持現狀，但也考慮到一些我們在電話會議之前討論過的營銷計劃。因此，我認為該指南向前發展的方式是，考慮到我們給出的負 16 億美元的指南，其餘季度的同比變化與第一季度更相似全年收入增至 17 億美元。

Got it. And then my follow-up, just bigger picture, if we step back, do you think your inventory position is holding back revenue growth and client growth in some ways? Is there some type of larger inventory issue at play for Stitch Fix? And do you need sort of a reset or a refresh in order to again connect with your core customer base?

知道了。然後我的後續行動，更大的圖景，如果我們退後一步，你認為你的庫存狀況是否在某些方面阻礙了收入增長和客戶增長？ Stitch Fix 是否存在某種較大的庫存問題？您是否需要重新設置或刷新以再次與您的核心客戶群建立聯繫？

I mean I can start, and Dan, feel free to chime in. I mean I think we feel like over the course of the last year plus, we introduced a really healthy mix of national brands together with our strong, exclusive and Stitch Fix-only brands, which is the latter make up the majority of our inventory. We onboarded north of 80 brands in FY '22. We've been able to grow our different product categories with Freestyle in particular, like footwear and outerwear and dresses. And we have a refresh/rebuy approach to our exclusive brands that makes us reasonably adaptable that we'll keep leaning into. So I think we actually have a lot of the right product.

我的意思是我可以開始了，Dan，請隨意插話。我的意思是我認為我們感覺在過去的一年中加上，我們引入了真正健康的民族品牌組合以及我們強大的、獨家的和 Stitch Fix-只有品牌，後者占我們庫存的大部分。我們在 22 財年加入了超過 80 個品牌。我們已經能夠通過 Freestyle 擴大我們不同的產品類別，例如鞋類、外套和連衣裙。我們對我們的獨家品牌採用更新/重新購買的方法，這使我們具有合理的適應性，我們將繼續努力。所以我認為我們實際上有很多合適的產品。

Now of course, for true category expansion, getting into the layers of growth we see possible as we really go after expanding our TAM. That, I think, is setting ourselves up as we work towards this fiscal year on some of the client experience. Some of the other work that we're focused on in the background are things like a unified data platform, which I think I've mentioned some of this on prior calls that our infrastructure was built very rapidly to scale our fixed business into multiple lines of business like women's, men's, kids in the U.K. It didn't have the foresight to know we'd launched Freestyle or the foresight to say let's get into a lot of different product categories.

現在，當然，對於真正的類別擴展，進入我們認為可能的增長層，因為我們在擴展我們的 TAM 之後真正去做。我認為，在我們為本財年的一些客戶體驗而努力時，這正在為我們自己做好準備。我們在後台關注的其他一些工作是統一數據平台之類的東西，我想我在之前的電話會議上已經提到了其中一些，我們的基礎設施建設非常迅速，可以將我們的固定業務擴展到多條線路在英國經營女裝、男裝、童裝等業務。它沒有先見之明知道我們推出了 Freestyle，也沒有先見之明讓我們進入許多不同的產品類別。

So we're essentially slowing down a bit to speed up in the future by preparing our infrastructure so that we can add on more of these new categories as we get into fiscal year '24. But that all said, we feel like we have the right assortment for our consumer. We're very focused on a combination of what we call our super mom within women's as well as leaning into a fashionista, and we know we've actually grown the penetration of that fashionista client over the last 12 months.

因此，我們實際上正在通過準備我們的基礎設施來放慢速度，以便在未來加快速度，這樣我們就可以在進入 24 財年時增加更多這些新類別。但總而言之，我們覺得我們為我們的消費者提供了正確的分類。我們非常專注於將我們稱為女裝中的超級媽媽以及向時尚達人傾斜的組合，我們知道在過去 12 個月中我們實際上已經增加了時尚達人客戶的滲透率。

And our next question comes from the line of Ike Boruchow with...

我們的下一個問題來自 Ike Boruchow 的...

This is Jesse Sobelson on for Ike. I was just curious, with the Freestyle offering being a little bit challenged with the promotional environment today, do you guys ever plan on evolving the offering to be maybe more in line with general retail business practices and the general retail landscape with the calendar promotions and such?

這是 Ike 的 Jesse Sobelson。我只是好奇，由於 Freestyle 產品在今天的促銷環境中受到了一些挑戰，你們是否計劃通過日曆促銷和這樣的？

Jesse, thanks for the question. Can you just clarify when you say more like traditional (inaudible)?

傑西，謝謝你的提問。當你說更像傳統（聽不清）時，你能澄清一下嗎？

A lot of traditional retailers typically exhibit promotions on a typical calendar such as deeper discounts during the holiday period or summer sales, depending on whether they're selling, whereas I kind of understand Freestyle to be a little bit more full priced. So I was curious if there was any interest in potentially adapting the offering to be more in line with the cadence of some other apparel distributors in the industry.

許多傳統零售商通常會在一個典型的日曆上展示促銷活動，例如假期期間或夏季促銷期間的更大折扣，這取決於他們是否在銷售，而我有點理解 Freestyle 的全價。因此，我很好奇是否有興趣調整產品以更符合業內其他一些服裝分銷商的節奏。

Okay. Got it. Yes. So I mentioned this a little bit earlier. I guess a few things I would offer. First, in terms of some of our highest converting areas within Freestyle, I think we've shared this in the past, between 40% to 50% of our conversions happen in outfit-based shopping, which is a big differentiator. We're helping clients see what items could go with something that they've already purchased as well as outfit-based shopping based on what we think is trending for them as well as in any of our product detail pages being able to see items in the context of algorithmically generated outfits as well as outfits that have been curated by our stylists.

好的。知道了。是的。所以我之前提到了這一點。我想我會提供一些東西。首先，就 Freestyle 中一些轉化率最高的領域而言，我想我們過去已經分享過這一點，我們 40% 到 50% 的轉化發生在基於服裝的購物中，這是一個很大的區別。我們正在幫助客戶了解哪些商品可以搭配他們已經購買的商品，以及根據我們認為對他們來說流行的服裝進行基於服裝的購物，以及在我們的任何產品詳細信息頁面中都能夠看到商品算法生成的服裝以及由我們的造型師策劃的服裝的背景。

So those characteristics, one thing that's interesting is we have done episodic, limited time offers now that we can flex that muscle similar to traditional retail, is that we see a halo effect to full-priced items during those same time periods as people come into the site experience. So I think we absolutely will continue to experiment and likely lean forward. We had our first Black Friday, Cyber Monday event, which we saw good lift in terms of what we were able to offer our clients in that window.

因此，這些特徵，一件有趣的事情是，我們已經完成了偶發的、限時的優惠，現在我們可以像傳統零售一樣展示這種力量，我們看到在人們進入的同一時間段內對全價商品產生光環效應現場體驗。所以我認為我們絕對會繼續試驗並可能向前傾斜。我們舉辦了第一個黑色星期五、網絡星期一活動，就我們能夠在該窗口中為客戶提供的服務而言，我們看到了很好的提升。

But I think we really want to strike a good balance of being relevant in those seasonal time periods, but ultimately do what we do best, which is differentiating based on style, discovery, fit. And as I mentioned to one of the prior questions I got on the notion of loyalty, we've always had the Style Pass program, but we see, down the road, no time line yet to share here, being able to offer just rewards back to our clients the same way they're rewarded if they buy 5 items in a fix. So I think rather than trying to just replicate the retail calendar, we would like to be really focused on what's unique to us.

但我認為我們真的想在這些季節性時間段之間取得良好的平衡，但最終還是做我們最擅長的事情，即根據風格、發現和合身性來區分。正如我提到的關於忠誠度概念的先前問題之一，我們一直有 Style Pass 計劃，但我們看到，在未來，還沒有時間線可以在這里分享，只能提供獎勵以同樣的方式回饋我們的客戶，如果他們一次性購買 5 件商品，他們將獲得獎勵。所以我認為，與其試圖複製零售日曆，不如真正專注於我們的獨特之處。

And our next question comes from the line of Tom Nikic with Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 Tom Nikic。

Is it safe to assume that the cut to the revenue guidance is predominantly because of more conservative functions, a lot of (inaudible) when the business (inaudible) if you start growing again, it would be predominantly driven by a recovery in the Freestyle business?

可以安全地假設收入指導的削減主要是因為更保守的功能，很多（聽不清）當業務（聽不清）如果你再次開始增長，這將主要由 Freestyle 業務的複蘇推動？

Tom, you cut out a little here. I think I'll let Dan answer. But just to play back, I think your question was, is the reduced guide largely driven by Freestyle? Was that the question? Or can you just clarify?

湯姆，你在這里切了一點。我想我會讓丹回答。但只是為了回放，我想你的問題是，減少的指南主要是由自由泳驅動的嗎？那是問題嗎？或者你能澄清一下嗎？

Yes, that's right. And then like would you expect a recovery to be driven by Freestyle as well?

恩，那就對了。然後，您是否希望 Freestyle 也推動復甦？

Yes, I can take that. It wasn't driven entirely by Freestyle. We talked a little bit about the reduction in advertise -- talked a lot about the reduction in advertising. Certainly, that's some of the reduction in revenue that we guided to. We also -- part of that is just the net actives and where we are today. And so while I do think Freestyle will -- as the economy improves, Freestyle will improve and that will help with growth. Certainly, Fix is critical and important to our business as well. And Elizabeth talked earlier about a variety of areas that we're focusing on to drive reengagement, engagement in clients who have filled out their style profile, but never purchased with us, et cetera. So that is also going to be the catalyst to grow going forward. And of course, the macro environment, as we talked about, will be a catalyst when that does improve as well.

是的，我可以接受。它並非完全由 Freestyle 驅動。我們談了一點關於廣告減少的問題——談了很多關於廣告減少的問題。當然，這是我們指導的收入減少的一部分。我們也 - 其中一部分只是淨活動和我們今天所處的位置。因此，雖然我確實認為 Freestyle 會——隨著經濟的改善，Freestyle 將會改善，這將有助於增長。當然，Fix 對我們的業務也至關重要。 Elizabeth 早些時候談到了我們正在關注的各個領域，以推動重新參與，參與那些填寫了他們的風格檔案但從未在我們這裡購買過的客戶，等等。因此，這也將成為未來增長的催化劑。當然，正如我們所說，當這種情況確實有所改善時，宏觀環境也將成為催化劑。

And our next question comes from the line of Kunal Madhukar with UBS.

我們的下一個問題來自瑞銀集團的 Kunal Madhukar。

A few, if I could. One is on the inventory side. So I go back to Q3 '22 earnings call, where you talked about the supply chain and the improvement that you have made. And I'm literally reading from the transcript. One of the big benefits of our business, we can make adjustments pretty rapidly, especially given the nature of how many goods we are actually in control of directly. And I compare that to what you said earlier in this call today is the inventory was higher because of long lead time. So can you help us understand exactly what's happening with the inventory? Are you in control of the supply chain? Are you not? Can you rapidly flex up and down? That will be the first.

一些，如果可以的話。一個是庫存方面。所以我回到 22 年第三季度的財報電話會議，您在那裡談到了供應鍊和您所做的改進。我真的是在讀文字記錄。我們業務的一大好處是，我們可以非常迅速地進行調整，尤其是考慮到我們實際直接控制的商品數量的性質。我將其與您今天早些時候在本次電話會議中所說的進行比較，因為交貨時間長，庫存較高。那麼您能幫助我們準確了解庫存情況嗎？你能控制供應鏈嗎？你不是嗎？你能快速上下彎曲嗎？那將是第一個。

So let me just explain. First of all, from order placement to receipt of inventory, for a lot of our products, especially, of course, our exclusive brand product, which is made to order, is about a 6-month lead time. So there are other areas specifically within national brands and other areas that we can flex up or down in, but we have a fairly sizable exclusive product. And those are pretty long lead times. Actually, they're probably even longer than 6 months. So what I was referring to in why our inventory was -- is higher now is because we had placed those orders when we had a different demand trajectory 6 to 9 months ago.

所以讓我解釋一下。首先，從下訂單到收到庫存，對於我們的很多產品，當然特別是我們的獨家品牌產品，它是定制的，大約需要 6 個月的交貨時間。因此，我們可以在民族品牌和其他領域的其他領域進行調整，但我們擁有相當可觀的獨家產品。這些都是相當長的交貨時間。實際上，它們可能甚至超過 6 個月。所以我指的是為什麼我們的庫存現在 - 現在更高是因為我們在 6 到 9 個月前有不同的需求軌跡時下了這些訂單。

We have since adjusted, which is why we expect inventory to go down in Q2 and then continue to go down throughout the rest of the fiscal year. That said, where there are pockets of opportunity, we absolutely can chase into that demand depending on where it is, and we do that fairly well. But we do have these slightly longer lead times for exclusive and our -- well, our exclusive product.

此後我們進行了調整，這就是為什麼我們預計庫存將在第二季度下降，然後在本財年剩餘時間繼續下降。也就是說，在有機會的地方，我們絕對可以根據需求的位置追逐需求，而且我們做得相當好。但是我們的獨家產品和我們的獨家產品確實有稍長的交貨時間。

Got it. Second one would be, you've guided to 5% to 6% of some -- advertising cost of like 5% to 6%. That is significantly below anything that you did pre-COVID. And you were extremely disciplined even then. But what that means is, this quarter, your advertising spend was down 19% year-over-year when sales were down 22% year-over-year. For the rest of the year, you're guiding to sales being down 20% in each of the following quarters, but the advertising spend will be down about 50% in each of the quarters. So what gives us the confidence that sales should not be even lower than the guide right now?

知道了。第二個是，你已經指導了 5% 到 6% 的廣告成本，比如 5% 到 6%。這大大低於您在 COVID 之前所做的任何事情。即使在那時，你也非常自律。但這意味著，本季度您的廣告支出同比下降 19%，而銷售額同比下降 22%。在今年餘下的時間裡，您預計接下來每個季度的銷售額將下降 20%，但每個季度的廣告支出將下降約 50%。那麼，是什麼讓我們有信心認為現在的銷售額不應低於指南呢？

Yes, Kunal. I can start on that, and Dan, feel free to add on. I mean first of all, I think we've always been very disciplined about how we manage our marketing spend, and I think we both touched on that to some extent, on the call. We are opting to be even more rigorous in the time period of payback than we typically are just in the spirit of the macro backdrop, this uncertain time and really ensuring that we have very near-term ROI on our marketing spend. .

是的，庫納爾。我可以從那開始，丹，請隨時補充。我的意思是，首先，我認為我們在管理營銷支出方面一直非常自律，而且我認為我們在電話會議上都在某種程度上談到了這一點。我們選擇在投資回報期上比我們通常只是本著宏觀背景、這個不確定的時間的精神更嚴格，並真正確保我們的營銷支出有非常近期的投資回報率。 .

A certain portion of our revenue, to be clear, comes from subsequent sales of existing clients that we're marketing through channels like CRM and engaging them to come back in. But it's not as much as the result of our paid spend. So our growth rate is in part due by new customer acquisitions, but it's also in part based on the installed base of our customers that are on auto ship and subsequent sales. So I don't think you should expect to see a perfectly one-to-one correlation with that downshift in marketing spend relative to our revenue rate.

需要明確的是，我們收入的一部分來自現有客戶的後續銷售，我們通過 CRM 等渠道進行營銷並吸引他們回來。但這並不像我們付費支出的結果那麼多。因此，我們的增長率部分是由於新客戶的收購，但也部分是基於我們在汽車運輸和後續銷售方面的客戶的安裝基礎。所以我認為你不應該期望看到營銷支出相對於我們的收入率的下降存在完美的一對一相關性。

I'd say overall in terms of is that a permanent shift or not, I think we got that question earlier, we are going to measure, as we always do, day to day, week to week and make adjustments accordingly. And some of the new areas that we've been leaning into that are underpenetrated for Stitch Fix, SEO, SEM, influencer affiliate, as we start to see goodness there, we will begin to scale those. So of course, that number may change over time. But I'd say net-net, the delta between those 2 rates is that part of the growth rate is an installed base and part of the growth rate is new customer acquisition.

我想說的是，總的來說是永久性轉變還是永久性轉變，我想我們早些時候得到了這個問題，我們將像往常一樣，每天、每週、每週進行衡量，並相應地做出調整。我們一直關注的一些新領域尚未被 Stitch Fix、SEO、SEM、影響者聯盟滲透，當我們開始看到那裡的好處時，我們將開始擴展這些領域。所以當然，這個數字可能會隨著時間而改變。但我想說的是淨值，這兩個比率之間的差值是增長率的一部分是安裝基礎，增長率的一部分是新客戶獲取。

Got it. And one last one, if I could. And this is with regard to the comment around keep rates and we are flat, but we see stretching frequencies. So is that -- can you give us a sense of like how the frequency is stretching? And could that stretch into once every 6 months or once every 12 months in order to further push the fixes into maybe next year kind of thing?

知道了。最後一張，如果可以的話。這是關於保持利率的評論，我們持平，但我們看到了拉伸頻率。那就是——你能告訴我們頻率是如何伸展的嗎？是否可以延長到每 6 個月一次或每 12 個月一次，以便進一步將修復推到明年之類的事情？

Yes. I can start on that. Our clients aren't all university -- universally like every 3 months. We have a mix of cohorts, some of which you get fixes every 6 weeks, some of which are every 3 months, some of which are biannual. It's more that -- and then a certain amount of our clients are what we call manual. They're episodically ordering fixes and they tend to occur at a certain frequency. I'd say a few things are probably driving that stretching out. One is a little bit of stretching across all of those cohorts. So it's not like everyone is going from 3 to 6. Somebody might have been 6 weeks and maybe they're skipping a shipment and then going back to that 6-week cadence.

是的。我可以開始了。我們的客戶並不都是大學的——普遍喜歡每 3 個月一次。我們有各種各樣的隊列，其中一些你每 6 週得到一次修復，一些是每 3 個月一次，一些是半年一次。更重要的是 - 然後我們的一定數量的客戶就是我們所說的手動。他們不定期地訂購修復程序，並且它們往往以特定的頻率發生。我想說有幾件事可能會導致這種情況發生。一個是跨越所有這些隊列。所以並不是每個人都從 3 周到 6 週。有些人可能已經 6 週了，也許他們跳過了一批貨，然後又回到了 6 週的節奏。

It also -- as we've slowed down the new ad cohorts, they tend to have some of the higher frequencies. And so some of the stretching is also a result of the mix shift of our client base in terms of the cohort age. But I think our goal is really overall on just continuing to be meeting the moment for our clients, helping their dollars go further with things like what I was describing with outfits, being incredibly effective at how we're listening, and frankly, just having the right assortment.

它還 - 由於我們放慢了新廣告群組的速度，它們往往有一些更高的頻率。因此，一些延伸也是我們客戶群在隊列年齡方面的混合轉變的結果。但我認為我們的總體目標實際上是繼續為我們的客戶滿足時刻，通過我所描述的服裝幫助他們的錢走得更遠，在我們傾聽的方式上非常有效，坦率地說，只是擁有正確的分類。

One thing we've seen is that we have sort of a sweet spot of where we've seen very strong velocity with price points under $100 blazer, sort of contemporary apparel and women's at the $150 price point. So just really making sure we're meeting them with what they're looking for regardless if they're extending a little bit or at the same frequency that they've been with us over time.

我們看到的一件事是，我們有一個甜蜜點，我們看到價格低於 100 美元的西裝外套、現代服裝和 150 美元的女裝的速度非常快。因此，只要真正確保我們能滿足他們的需求，無論他們是在擴展一點點還是以與我們一起長期使用的相同頻率。

And our next question comes from the line of Trevor Young with Barclays.

我們的下一個問題來自巴克萊銀行的 Trevor Young。

Just first on the increase in the cost reduction target to $135 million. Do you expect to realize all of that in '23 since most of that is advertising? And then within that, how much is really advertising and durable versus just more kind of near-term pulling back given the current environment?

首先是將成本削減目標增加到 1.35 億美元。你是否期望在 23 年實現所有這些，因為其中大部分是廣告？然後在其中，有多少是真正的廣告和持久的，而不是在當前環境下更多的短期回調？

Yes. Thanks, Trevor. I can start, but I definitely would love Dan to chime in here. As we said in prior quarters, we had that $40 million to $60 million. We shared that we were tracking to that and likely to go beyond it. Now this increase to $135 million, a meaningful chunk of that is, in fact, advertising dollars together with fixed and variable productivity. In terms of when we will see it realized, Dan, do you want to just share more on that?

是的。謝謝，特雷弗。我可以開始，但我絕對希望 Dan 在這裡插話。正如我們在前幾個季度所說，我們有 4000 萬至 6000 萬美元。我們分享說我們正在追踪並可能超越它。現在這個數字增加到 1.35 億美元，其中很大一部分實際上是廣告費以及固定和可變的生產力。至於我們什麼時候會看到它實現，丹，你想分享更多嗎？

Yes. That will be realized in our fiscal year. That's how we -- that's why we're quoting it the way we do because a lot of it is advertising. And when you model out that 5% to 6% of revenue, you'll see that. And then, of course, the remainder is a combination of fixed and variable efficiencies and leverage, which on the -- to answer your second part, on a go-forward basis.

是的。這將在我們的財政年度實現。這就是我們 - 這就是為什麼我們以我們的方式引用它，因為其中很多都是廣告。當您對收入的 5% 到 6% 進行建模時，您會看到這一點。然後，當然，其餘部分是固定和可變效率和槓桿的組合，在前進的基礎上回答你的第二部分。

As we mentioned on the advertising, that will -- we'll look at that very closely. We'll look at the ROI on that. We'll spend into where we have near-term positive ROI. And we're not -- we're going to pull back where we don't. And so we'll manage that very closely for the rest of the year and, of course, into our fiscal '24. And then all the -- on the variable and fixed, obviously, that is indefinite and won't continue going forward as we see those efficiencies and take advantage of them.

正如我們在廣告中提到的那樣——我們會非常仔細地研究它。我們將看看投資回報率。我們將把錢花在我們有近期正投資回報率的地方。我們不會——我們會在我們沒有的地方後退。因此，我們將在今年餘下的時間裡非常密切地管理它，當然還有我們的 24 財年。然後所有 - 關於可變和固定，顯然，這是不確定的，並且不會繼續前進，因為我們看到這些效率並利用它們。

And our next question comes from the line of Dana Telsey with Telsey Advisory Group.

我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

As you're talking about the customers delaying spending, is there any particular cohorts that you're seeing it from more or less? And then can you talk about product trends in terms of what you saw and in terms of pricing, both on Freestyle and what you're seeing requested in fixes? And lastly, with the advertising spend moving from 9% this year to 5% to 6%, what made 5% to 6% the right number? And what are you looking for to see if you need to increase advertising given what the revenue impact may be?

當您談論客戶延遲支出時，您是否從或多或少的角度看到了任何特定的群體？然後你能談談你所看到的和定價方面的產品趨勢，包括 Freestyle 和你在修復中看到的要求嗎？最後，隨著廣告支出從今年的 9% 上升到 5% 到 6%，是什麼讓 5% 到 6% 成為正確的數字？考慮到可能對收入產生的影響，您希望了解是否需要增加廣告？

Yes, I'll start with that, and I'll ask -- Elizabeth can take the second part of that question. When we look -- it's a good question on the cohorts, and we looked at this in many different ways across our cohorts. And we -- I mentioned in my prepared remarks, we did see a broad spending reduction across all our cohorts. So clearly, the macro environment is impacting spend, whether it's a client who has in 50-plus fixes or a client in their first 15 fixes and regardless of tenure, we looked at it every which way.

是的，我將從這個開始，我會問——伊麗莎白可以回答這個問題的第二部分。當我們看時——這是一個關於隊列的好問題，我們在我們的隊列中以許多不同的方式看待這個問題。而且我們——我在準備好的發言中提到，我們確實看到我們所有群體的支出都大幅減少。很明顯，宏觀環境正在影響支出，無論是擁有 50 多次修復的客戶還是前 15 次修復的客戶，無論任期如何，我們都從各個方面進行了研究。

And while we had seen increasing spend quarter-on-quarter in these cohorts, for many quarters back and even a couple of quarters back we saw an increase, we clearly saw the spending go down across the broad set of cohorts in this latest fiscal quarter. And we do expect that to continue just given the high inflationary environment, the competitive landscape and the overall macroeconomic factors.

雖然我們看到這些人群的支出環比增加，但在過去的許多季度甚至幾個季度前，我們都看到了增長，但我們清楚地看到，在最近一個財政季度，大部分人群的支出都在下降.鑑於高通脹環境、競爭格局和整體宏觀經濟因素，我們確實預計這種情況將繼續下去。

And Dana, I can touch on the trend question and the marketing question. So maybe I'll start with some of what we saw in the quarter and some of the trends we're seeing. And then we're about to release our style forecast. Our annual sale forecast will come out next week, so I can give a preview of some of what we're hearing there from our 3.7 million clients, from our stylists, from consumer surveys and industry data, which are sort of our -- some of our predictions for the coming calendar year.

Dana，我可以談談趨勢問題和營銷問題。所以也許我會從我們在本季度看到的一些情況和我們看到的一些趨勢開始。然後我們即將發布我們的風格預測。我們的年度銷售預測將在下周公布，因此我可以預覽一下我們從 370 萬客戶、造型師、消費者調查和行業數據那裡聽到的一些信息，這些都是我們的——一些我們對即將到來的日曆年的預測。

But in terms of what we saw this quarter, I would say, in particular, for women's back to work, clients shifting into workwear over more of that casual end use that we saw a year ago. So structured blazers was an area where we saw particular growth, a real sweet spot in the sub-$100 blazer price point. Those were up north of 120% year-on-year. We also saw a shift to dress your outerwear with a variety of kind of (inaudible) styles and silhouettes. We also saw strength within booties and heels against last year, up over 25% year-on-year. So clearly, a female consumer who's going out again, night out and workwear styles that can transition into the evening.

但就我們在本季度看到的情況而言，我要說的是，特別是對於女性重返工作崗位，客戶轉向工作服，而不是我們一年前看到的更多休閒終端用途。因此，結構化西裝外套是我們看到特別增長的一個領域，是低於 100 美元西裝外套價格點的真正甜蜜點。同比增長超過 120%。我們還看到了一種轉變，即用各種（聽不清）款式和款式來裝扮你的外套。我們還看到靴子和高跟鞋與去年相比表現強勁，同比增長超過 25%。很明顯，女性消費者再次外出，夜間外出和可以過渡到晚間的工作服款式。

We also saw with men some similar, I would say, trends in terms of going back to work, very strong velocity within our workwear segment. And with outerwear, seeing strength in things like shirt jackets. And then kids have stayed more casual, I would say, with graphics and cozy attire. Within our forecast, some of the things that we're seeing now and coming forward is a real focus on getting back to holiday parties and holiday trends. Brighter and bolder colors is something we're expecting in the future. And then a tendency towards wide leg bottoms, which started several seasons ago, but we're beginning to really see that shift occur in a more meaningful way.

我想說，我們在男性身上也看到了一些類似的趨勢，即重返工作崗位的趨勢，在我們的工作服細分市場中速度非常快。而在外套方面，可以從襯衫夾克之類的東西中看到力量。然後孩子們更加休閒，我會說，穿著圖形和舒適的衣服。在我們的預測中，我們現在看到和即將到來的一些事情是真正關注回到節日派對和節日趨勢。更明亮、更大膽的顏色是我們期待的未來。然後是幾個賽季前開始的闊腿褲趨勢，但我們開始真正看到這種轉變以更有意義的方式發生。

And then on the marketing spend, the 5% to 6%, I would say it was kind of a combination assessment of really being very focused on our free cash flow and EBITDA ambition for the year and really holding ourselves to this very strong threshold of the time frame of payback, together with the belief that there's opportunity for us to be doing more in areas that I mentioned on the prepared remarks, like reactivation of clients who have not shopped with us as recently and being more productive going after those segments as well as that group of clients we often call our signed up prospects. And so together, that was our estimate of what we could do to still create momentum with clients but be able to really be more efficient in the back half of the year.

然後關於營銷支出，5% 到 6%，我想說這是一種綜合評估，真正非常關注我們今年的自由現金流和 EBITDA 目標，並真正讓我們自己達到這個非常高的門檻投資回報的時間框架，以及我們有機會在我在準備好的評論中提到的領域做更多事情的信念，比如重新激活最近沒有在我們這裡購物的客戶，並在這些細分市場上提高效率以及我們通常稱為已簽約潛在客戶的那群客戶。因此，這就是我們對我們可以做些什麼來仍然為客戶創造動力但能夠在今年下半年真正提高效率的估計。

And our next question comes from the line of Mark Mahaney with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Mark Mahaney。

I think most of my questions have been answered. So I'll just ask one. Just on free cash flow and the ability to sustain positive free cash flow going forward. Outside of the macro recovery, what would be the key factors that will cause that to happen or not to happen? Like what are the variables that you can most control outside of macro that will allow you to sustain positive free cash flow over the next several years?

我想我的大部分問題都得到了回答。所以我只問一個。僅靠自由現金流和未來維持正自由現金流的能力。在宏觀復甦之外，導致這種情況發生或不發生的關鍵因素是什麼？比如在宏觀之外你最能控制哪些變量可以讓你在未來幾年維持正的自由現金流？

Yes. I can take that. I mentioned towards the end of the prepared remarks just our overall contribution margin, which is very healthy at 25% to 30% ex marketing. And so really, it is that inflection on revenue, of course, getting -- growing again at some point. We do feel like our order and unit economics are very strong. We are rightsizing our cost structure. We do have a lot of opportunity for variable productivity. All these work streams are in process and part of the cost savings initiative, $135 million, that we stated on the call. So we feel good about the second half in terms of -- and obviously, our EBITDA guide, our adjusted EBITDA guide shows that, that we feel good about the second half. And going forward, we do think there's leverage on top of that.

是的。我可以接受。我在準備好的評論的最後提到了我們的整體貢獻率，這是非常健康的 25% 到 30% ex marketing。因此，實際上，收入的變化當然會在某個時候再次增長。我們確實覺得我們的訂單和單位經濟效益非常強勁。我們正在調整我們的成本結構。我們確實有很多機會實現可變生產力。所有這些工作流都在進行中，並且是我們在電話會議上提到的 1.35 億美元成本節約計劃的一部分。因此，我們對下半年感覺良好 - 顯然，我們的 EBITDA 指南，我們調整後的 EBITDA 指南表明，我們對下半年感覺良好。展望未來，我們確實認為最重要的是有影響力。

So it's a combination of continuing on these areas that we've embarked upon to streamline our cost structure. And of course, we'll -- we need to get the revenue growing again at some point, whether that's through category expansion and/or all the initiatives that we're working on right now, inclusive of the new marketing, the new advertising models that we've talked about.

因此，我們將繼續在這些領域開展工作，以精簡我們的成本結構。當然，我們會——我們需要在某個時候讓收入再次增長，無論是通過品類擴張和/或我們目前正在開展的所有舉措，包括新營銷、新廣告我們討論過的模型。

Mark, I would just -- I think that really sums it up in terms of where we see that long-term return to free cash flow. I guess a couple of other things I would add on that gross margin side of things, the majority of our goods are exclusive brands, Stitch Fix only, and those have very meaningful gross margin kind of delta between those and national brands, and that's just continuing to be a strength for us. There's a several hundred basis point difference where just continuing to make sure that we're investing in the right brands, the right price points that we're building exclusively for our clients. And then I think that marketing piece that we're making the shift on, we really do believe that we can get stronger over time with a combination of these newer channels we're less penetrated in, but also doing more with keeping our clients happier longer. Better conversion, better retention, better reactivation, that should drive more productivity in the P&L as well.

馬克，我只是 - 我認為這真的總結了我們看到自由現金流的長期回報的地方。我想我會在毛利率方面添加一些其他的東西，我們的大部分商品都是獨家品牌，只有 Stitch Fix，那些與國家品牌之間的毛利率差異非常大，這只是繼續成為我們的力量。有幾百個基點的差異，只是繼續確保我們投資於正確的品牌，我們專門為客戶打造的正確價格點。然後我認為我們正在轉變的營銷部分，我們確實相信隨著時間的推移，我們可以通過結合這些我們較少滲透的新渠道變得更強大，但也可以做更多讓我們的客戶更快樂更長。更好的轉化率、更好的保留率、更好的重新激活，這也應該會提高損益表的生產力。

And our next question comes from the line of Aneesha Sherman with Bernstein.

我們的下一個問題來自 Aneesha Sherman 與 Bernstein 的對話。

My question is around inventory. So Elizabeth, you talked about national brands being slightly lower margin. I'm curious if you're seeing more interest from vendors, particularly national brands, as they try to clear their own inventories this quarter and probably going into next quarter as well. And is there an opportunity there in terms of gross margin from a better buying environment that you may be seeing right now? .

我的問題是關於庫存的。所以伊麗莎白，你談到民族品牌的利潤率略低。我很好奇您是否看到供應商（尤其是民族品牌）的更多興趣，因為他們試圖在本季度清理自己的庫存，並且可能也會進入下一個季度。您現在可能看到的更好的購買環境在毛利率方面是否有機會？ .

And then a follow-up also on inventory. You mentioned the 6-month lead time as your typical lead time. So I guess I would assume that the goods that you have now are spring/summer '23 goods. How do you think about the risk of sell-through for that product, especially if you see macro continuing to be weak into the next quarter or 2?

然後對庫存進行跟進。您提到 6 個月的交貨時間是您的典型交貨時間。所以我想我會假設你現在擁有的商品是 23 年春夏商品。您如何看待該產品的銷售風險，特別是如果您認為宏觀經濟在下一季度或第二季度繼續疲軟？

Yes. I can take that question. No, we're not seeing that, and it's not something we've considered in terms of national brands. Of course, we've been selective on bringing in the right national brands that we think our customers are going to love that do well within Fix or within Freestyle. But we haven't seen anything changed beyond that in terms of being approached for national brands top load inventory. And really, with our focus on exclusive brands and our Stitch Fix-only brands, which is not only higher margin, but it's what our clients love, we just feel there's an opportunity to continue to invest in those areas.

是的。我可以接受這個問題。不，我們沒有看到，這不是我們在民族品牌方面考慮過的事情。當然，我們一直有選擇地引入我們認為我們的客戶會喜歡的合適的民族品牌，這些品牌在 Fix 或 Freestyle 中表現出色。但我們沒有看到任何改變，除此之外，在接觸民族品牌頂級庫存方面。事實上，由於我們專注於獨家品牌和我們的 Stitch Fix-only 品牌，這不僅利潤率更高，而且是我們的客戶所喜歡的，我們只是覺得有機會繼續投資這些領域。

With respect to the question on inventory, we talked a little bit about summer/spring in Q4. We took some inventory reserves to account for that. We feel that we're in a very good spot in terms of what we've reserved for. And we've also -- as Elizabeth mentioned, we also have different avenues to focus on overstock inventory, mainly limited time offers and/or clearance events, whether they're at the end of the season, which we often do to help us clear out some of the inventory -- excess inventory that we do have. So while we do have a high inventory, we watch it pretty closely.

關於庫存問題，我們在第四季度談了一些關於夏季/春季的問題。我們採取了一些庫存儲備來解決這個問題。我們覺得就我們保留的內容而言，我們處於一個非常好的位置。我們也——正如伊麗莎白提到的，我們也有不同的途徑來關注積壓庫存，主要是限時優惠和/或清倉活動，無論它們是在季節結束時，我們經常這樣做來幫助我們清理一些庫存——我們確實擁有的過剩庫存。因此，雖然我們的庫存確實很高，但我們會密切關注它。

I'm not concerned about the health of the inventory at this point. Again, we looked at this in our Q4 and took the appropriate level of reserves and have since clearanced a lot of that inventory out. Very focused on fall/winter right now, which we're just getting -- going into that season. And so we're watching how that does. And again, as we expect inventory to come down sequentially over the next 3 quarters, we feel we're in a good spot going forward.

此時我不關心庫存的健康狀況。同樣，我們在第四季度對此進行了研究，並採取了適當的儲備水平，此後清理了大量庫存。現在非常關注秋冬，我們剛剛進入那個季節。所以我們正在觀察它是如何做到的。而且，由於我們預計庫存將在未來 3 個季度連續下降，我們認為我們正處於一個有利的位置。

And our final question comes from the line of Lamont Williams with Stifel.

我們的最後一個問題來自 Lamont Williams 與 Stifel 的合作。

Just -- and partly, this is already answered, but on the Freestyle penetration, I believe you've talked about that being pretty consistent, around 30% for women. Is that still the case today?

只是 - 部分地，這已經得到回答，但關於自由式滲透率，我相信你已經談到了相當一致的情況，女性約為 30%。今天還是這樣嗎？

Lamont, thanks for the question. Yes. I think overall, we look at it across our base. But yes, it's kind of in that 25% range, and it stayed pretty steady, I would say, in terms of new client adoption and then holding steady there. We do have things on the horizon that we'll be launching in the back half of the year like SMS, encouraging more app downloads. Those things, we believe -- we still believe there's opportunity for that to get higher, but it stayed pretty stable, I would say, over the last several quarters.

拉蒙特，謝謝你的提問。是的。我認為總的來說，我們會在我們的基礎上審視它。但是，是的，它有點在 25% 的範圍內，而且它保持相當穩定，我想說，就新客戶採用率而言，然後保持穩定。我們確實有一些即將在今年下半年推出的東西，比如 SMS，以鼓勵更多的應用程序下載。我們相信，那些事情——我們仍然相信它有機會變得更高，但我想說，在過去的幾個季度裡它保持相當穩定。

Thank you. And that does conclude today's conference call. Ladies and gentlemen, thank you for participating, and you may now disconnect.

謝謝你。這確實結束了今天的電話會議。女士們先生們，感謝您的參與，您現在可以斷開連接了。