Stitch Fix Inc (SFIX) 2023 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Second Quarter Fiscal Year 2023 Stitch Fix Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Hayden Blair.

美好的一天，謝謝你的支持。歡迎來到 2023 財年第二季度 Stitch Fix 收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的發言人海登布萊爾。

Good afternoon and thank you for joining us today to discuss the results for Stitch Fix's second quarter of fiscal year 2023. Joining me on the call today are Katrina Lake, Interim CEO of Stitch Fix and Dan Jedda, CFO. Also joining us on today's call is David Aufderhaar. We have posted complete second 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 財年第二季度的結果。今天和我一起參加電話會議的有 Stitch Fix 臨時首席執行官 Katrina Lake 和首席財務官 Dan Jedda。參加今天電話會議的還有 David Aufderhaar。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 年第二季度財務業績。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 sections 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 second 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二季度的 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 Katrina.

有了這個，我會把電話轉給卡特里娜颶風。

Thanks, Hayden. 12 years ago, I was inspired by a very simple human problem to help people look and feel their best. Now as I find myself back as Interim CEO, this simple mission feels more resonant than ever. I am proud of the ways that we have made our mission a reality, but also motivated by the opportunity ahead. We are still in the early days of transforming the industry of apparel and I feel optimistic that Stitch Fix can continue to lead the way in personalization and achieve greater impact in the years to come.

謝謝，海登。 12 年前，我受到一個非常簡單的人類問題的啟發，希望幫助人們展現最佳狀態。現在，當我發現自己重新擔任臨時 CEO 時，這個簡單的使命比以往任何時候都更能引起共鳴。我為我們實現使命的方式感到自豪，同時也為未來的機遇所激勵。我們仍處於服裝行業轉型的早期階段，我對 Stitch Fix 能夠在未來幾年繼續引領個性化並取得更大影響感到樂觀。

While many companies maybe starting to define an AI strategy, our company was built on data science from day one. We have built technology and systems that leverage the best elements of human stylist combined with machine learning and the billions of proprietary data points that we have around client and product interactions are rich, meaningful datasets that predict outcomes and help us to understand what clients need. At the same time, I realized we haven't met recent expectations. Driving towards an ambitious vision has resulted in a loss of focus. We must now more than ever deliver on the client experience, bring focus in our marketing efforts and drive results for our shareholders. We have clarity on our path, long-term and short-term.

雖然許多公司可能開始定義人工智能戰略，但我們公司從第一天起就建立在數據科學之上。我們已經構建了技術和系統，利用人類造型師的最佳元素與機器學習相結合，我們擁有的數十億個圍繞客戶和產品交互的專有數據點是豐富、有意義的數據集，可以預測結果並幫助我們了解客戶的需求。與此同時，我意識到我們沒有達到最近的預期。朝著雄心勃勃的願景前進導致失去焦點。我們現在比以往任何時候都更需要提供客戶體驗，將重點放在我們的營銷工作上，並為我們的股東帶來成果。我們對我們的道路，長期和短期都有清晰的認識。

Long-term, I continue to have great conviction that the market opportunity for a more personalized way to buy apparel is large and growing and that we have a significant advantage rooted in our decade of experience and leveraging data to deliver personalization at scale. Shorter term, we also have clarity. We need to get back to a position of execution and profitability. We have a history of achieving both in the past and I am confident we will get there again. There were two major events in fiscal second quarter intended to help reposition and refocus the company to set ourselves up to optimize for liquidity and profitability in the short-term and maximize our long-term growth potential.

從長遠來看，我仍然堅信，以更個性化的方式購買服裝的市場機會是巨大的，而且還在不斷增長，而且我們擁有植根於我們十年經驗和利用數據大規模提供個性化服務的顯著優勢。短期內，我們也很清楚。我們需要回到執行和盈利的位置。我們過去曾取得過這兩項成就，我相信我們會再次實現這一目標。第二財季發生了兩件大事，旨在幫助公司重新定位和調整重點，以便在短期內優化流動性和盈利能力，並最大限度地發揮我們的長期增長潛力。

First, we restructured our operating model and made the difficult decisions to reduce our headcount by 20% of salary position and to set our operations in our Salt Lake City warehouse. Late last year, we began analyzing the team and determined to restructure the organization in an effort to create a leaner operating model. This also allows us an opportunity to reorganize and refocus to more nimbly execute. These decisions are never easy, but we know it was the right decision to achieve our goals of liquidity and profitability and for the overall health of the business.

首先，我們重組了我們的運營模式並做出了艱難的決定，將我們的員工人數減少了 20% 的工資職位，並將我們的業務設在我們的鹽湖城倉庫。去年年底，我們開始分析團隊並決定重組組織以努力創建更精簡的運營模式。這也讓我們有機會重新組織和重新聚焦以更靈活地執行。這些決定絕非易事，但我們知道這是實現流動性和盈利能力目標以及業務整體健康發展的正確決定。

And second, we are conducting a search for a permanent CEO. The Board and I realized that the macroeconomic environment, competitive landscape, and even our own business has changed meaningfully over the past few years. And we are excited to find the right leader for the present and future of Stitch Fix. I am encouraged by the process thus far. And I am confident that we can find an inspiring person to lead the Stitch Fix team and help reestablish the track record of results we were once known for.

其次，我們正在尋找一位常任首席執行官。董事會和我意識到宏觀經濟環境、競爭格局，甚至我們自己的業務在過去幾年都發生了重大變化。我們很高興能為 Stitch Fix 的現在和未來找到合適的領導者。到目前為止，我對這個過程感到鼓舞。我相信我們可以找到一個鼓舞人心的人來領導 Stitch Fix 團隊，並幫助重建我們曾經聞名的業績記錄。

In addition, we shared in our press release this afternoon that Dan Jedda will be stepping down as CFO to pursue a new opportunity. The Board and I want to thank Dan for his service to Stitch Fix and wish him well for the future. David Aufderhaar, our SVP of Finance will succeed him as CFO. David joined us 4 years ago with an eye towards CFO's succession. And working together these many years I have been impressed and inspired by his depth of partnership with the functional leaders at Stitch Fix, his deep commitment to and understanding of our business and our team. He is a thoughtful and trusted leader and I am excited for him to step into the CFO role.

此外，我們在今天下午的新聞稿中分享了 Dan Jedda 將辭去首席財務官一職以尋求新的機會。董事會和我要感謝 Dan 為 Stitch Fix 所做的貢獻，並祝愿他未來一切順利。我們的財務高級副總裁 David Aufderhaar 將接替他擔任首席財務官。 David 4 年前加入我們，著眼於 CFO 的繼任。多年來一起工作，他與 Stitch Fix 職能領導的深度合作，他對我們的業務和團隊的深刻承諾和理解，給我留下了深刻的印象和啟發。他是一位深思熟慮且值得信賴的領導者，我很高興他能擔任首席財務官一職。

Now on to the financials in the quarter. Fiscal second quarter revenue came in at $412.1 million, which was at the lower end of the provided range. Despite this, we delivered adjusted EBITDA of $3.8 million, which was at the high-end of our guidance range due to effective cost controls and our corporate restructuring. Dan will dive more into the financials later on. But before handing it over, I want to touch on topics in marketing and our products that demonstrate how the company is rallying around bringing focus and clarity to better deliver results for our clients and shareholders.

現在談談本季度的財務狀況。第二財季收入為 4.121 億美元，處於所提供範圍的下限。儘管如此，由於有效的成本控制和公司重組，我們的調整後 EBITDA 為 380 萬美元，處於我們指導範圍的高端。丹稍後將更深入地研究財務問題。但在交接之前，我想談一談營銷和我們的產品方面的話題，這些話題展示了公司如何集中註意力和清晰度，以更好地為我們的客戶和股東帶來成果。

Consistent with the broader company, our marketing strategy aims to preserve liquidity and achieve profitability while simultaneously attracting long term customers to fuel a return to growth. This will be the case as we continue to refine our traditional paid channels as well as diversify into underpenetrated channels we have yet to scale. We are also continuing to lean into client retention and reengagement strategies in an effort to continue to increase engagement and optimize our CPAs. It's worth highlighting that our CPAs were down over 40% from a year ago, which shows despite a significant reduction in overall budget, we are gaining traction in more effectively deploying our marketing dollars. Overall, we know these are the right things to focus on. And when combined with our efforts to maximize the client experience and improve retention should maximize ROI in the short-term and set the stage for a return to growth.

與更廣泛的公司一致，我們的營銷策略旨在保持流動性並實現盈利，同時吸引長期客戶以推動恢復增長。隨著我們繼續完善我們的傳統付費渠道，並向我們尚未擴展的滲透率低的渠道多樣化，情況將會如此。我們還將繼續採用客戶保留和重新參與策略，以努力繼續提高參與度並優化我們的 CPA。值得強調的是，我們的每次轉化費用比一年前下降了 40% 以上，這表明儘管總體預算大幅減少，但我們在更有效地部署營銷資金方面取得了進展。總的來說，我們知道這些是需要關注的正確事情。結合我們最大限度地提高客戶體驗和提高保留率的努力，應該會在短期內最大限度地提高投資回報率，並為恢復增長奠定基礎。

Moving on to the client experience. A complicated macroeconomic environment and tighter client wallets make it more critical than ever to reexamine and bring focus to our client experience. The ambitious vision we embrace for the past many months has resulted in a client experience that is less focused on our core areas of differentiation. And we believe that there is opportunity to drive long-term value by being really deliberate and targeted about the role of features and functionalities in the Stitch Fix ecosystem. As an example, we have recently refined our point of view on Fix Preview. Although at the highest level, Fix Preview has demonstrated a positive impact on AOVs. Digging into the data, we see a more nuanced story. There absolutely are clients who significantly benefit from Fix Preview. But there are also clients for whom showing a preview actually increases cancellation.

繼續進行客戶體驗。複雜的宏觀經濟環境和緊縮的客戶錢包使得重新審視和關注我們的客戶體驗比以往任何時候都更加重要。在過去的幾個月裡，我們抱有雄心勃勃的願景，導致客戶體驗不太關注我們的差異化核心領域。我們相信，通過真正深思熟慮和有針對性地了解特性和功能在 Stitch Fix 生態系統中的作用，有機會推動長期價值。例如，我們最近改進了對 Fix Preview 的觀點。儘管處於最高級別，修復預覽已顯示出對 AOV 的積極影響。深入研究數據，我們看到了一個更微妙的故事。絕對有一些客戶從 Fix Preview 中受益匪淺。但也有一些客戶顯示預覽實際上增加了取消率。

Acting on this data, we found an opportunity to drive better outcomes and LTV by experimenting with eliminating the preview for some clients, allowing those clients to enjoy the surprise and delight that we know those clients value while allowing other clients to benefit from the agency of Fix Preview. I share this example of letting data drive our decisions and providing more intention and focus in the client experience. I anticipate there are many similar opportunities as we dig into the data and the experience and we believe these strategies will drive LTV enabling us to optimize cash flow and profitability in the short-term while positioning ourselves for an eventual return to growth.

根據這些數據，我們找到了一個機會來推動更好的結果和 LTV，方法是嘗試取消某些客戶的預覽，讓這些客戶享受我們知道這些客戶重視的驚喜和喜悅，同時讓其他客戶從代理中受益修復預覽。我分享了這個讓數據驅動我們的決策並提供更多意圖和關注客戶體驗的例子。我預計在我們深入研究數據和經驗時會有很多類似的機會，我們相信這些策略將推動 LTV，使我們能夠在短期內優化現金流和盈利能力，同時為最終恢復增長做好準備。

Before I turn it over to Dan, I want to thank the entire team at Stitch Fix. We talk internally about celebrating Stitch Fix Grit as one of our core operating tenants. And I have been inspired by the grit I have experienced day in and day out from the team these past few months. I continue to be inspired by the passion I see to deliver value for our clients and our business and to make our company a fantastic place to work. Our continued focus and data-driven decision-making are paving the way for a bright future for Stitch Fix. I believe we are on the right track to get there and I look forward to continuing the journey with you all.

在我把它交給 Dan 之前，我想感謝 Stitch Fix 的整個團隊。我們在內部討論慶祝 Stitch Fix Grit 作為我們的核心運營租戶之一。在過去的幾個月裡，我日復一日地從團隊中感受到的勇氣鼓舞了我。我繼續被我看到的為我們的客戶和我們的業務創造價值並使我們的公司成為一個理想的工作場所的熱情所鼓舞。我們持續的關注和數據驅動的決策正在為 Stitch Fix 的光明未來鋪平道路。我相信我們正走在正確的道路上，我期待著與大家一起繼續這段旅程。

With that, I will turn it over to Dan.

有了這個，我會把它交給丹。

Thank you, Katrina and hello to everyone on the call. Before jumping in, I want to thank Katrina and the Stitch Fix board for this opportunity and congratulate David on his new role. David and I have enjoyed a positive and productive working relationship during my tenure and I am confident he is the right person to lead the team. David and I will be working together over the next several weeks to ensure an orderly transition.

謝謝你，卡特里娜颶風，並向通話中的每個人問好。在開始之前，我要感謝卡特里娜颶風和 Stitch Fix 董事會給我這個機會，並祝賀大衛擔任新角色。在我任職期間，大衛和我一直保持著積極而富有成效的工作關係，我相信他是領導團隊的合適人選。大衛和我將在接下來的幾週內共同努力，以確保有序過渡。

On to our Q2 results, Q2 net revenue declined 20% year-over-year to $412.1 million due to the lower net active clients and higher promotional activity in the quarter. Net active clients in the quarter declined 11% year-over-year year over year to approximately $3.6 million. As Katrina mentioned earlier, we have continued to diversify our marketing channel, while ensuring we realized positive near-term ROI on advertising spend. Total advertising spend in the quarter was 5% of net revenue and down 46% year-over-year. We like the trends we are seeing in overall CPA. Even with the lower spend in advertising, we did see positive year-over-year and gross client adds in men's in Q2. And while women's and kids gross adds were down year-over-year, our rates are improving in both lines of business. We do continue to see elevated levels of inactive clients and continue to focus on improving this with the right client experience.

關於我們第二季度的業績，由於本季度淨活躍客戶減少和促銷活動增加，第二季度淨收入同比下降 20% 至 4.121 億美元。本季度淨活躍客戶同比下降 11% 至約 360 萬美元。正如卡特里娜颶風之前提到的，我們繼續使我們的營銷渠道多樣化，同時確保我們在廣告支出方面實現積極的近期投資回報率。本季度總廣告支出占淨收入的 5%，同比下降 46%。我們喜歡我們在總體 CPA 中看到的趨勢。即使在廣告支出較低的情況下，我們確實看到第二季度男裝的同比增長和總客戶增加。雖然女性和兒童的總收入同比下降，但我們在這兩個業務領域的增長率都在提高。我們確實繼續看到不活躍客戶的水平升高，並繼續專注於通過正確的客戶體驗來改善這一點。

We expect advertising to be 6% to 7% of net revenue for the rest of the year. So we will continue to be opportunistic if we experienced the right ROI and lean in where appropriate. Revenue per active client declined 6% year-over-year to $516. While our overall average order value is holding relatively steady year-over-year, similar to Q1, our analysis continues to show that all client cohorts are spending less than in prior years. We expect this trend to continue through the rest of FY ‘23.

我們預計今年剩餘時間廣告收入將占淨收入的 6% 至 7%。因此，如果我們獲得了正確的投資回報率並在適當的時候傾斜，我們將繼續投機取巧。每個活躍客戶的收入同比下降 6% 至 516 美元。雖然我們的總體平均訂單價值與去年同期相比保持相對穩定，與第一季度類似，但我們的分析繼續表明，所有客戶群體的支出都低於往年。我們預計這一趨勢將持續到 23 財年的剩餘時間。

Q2 gross margin came in at 41%, down 400 basis points year over year, driven primarily by lower product margins due to increased promotional activity and higher product cost. Total transportation costs were also up year-over-year due to increased carrier rates. Sequentially, gross margin was down approximately 100 basis points from Q1 due mostly to increased promotional activity. We expect gross margins to be around 42% for the remainder of that fiscal year and are actively focused on improving gross margins as we see opportunities to improve product margin, transportation efficiency and inventory efficiency over time.

第二季度毛利率為 41%，同比下降 400 個基點，這主要是由於促銷活動增加和產品成本上升導致產品利潤率下降。由於承運人費率上漲，總運輸成本也同比上漲。因此，毛利率較第一季度下降約 100 個基點，主要原因是促銷活動增加。我們預計該財年剩餘時間的毛利率約為 42%，並積極專注於提高毛利率，因為我們看到了隨著時間的推移提高產品利潤率、運輸效率和庫存效率的機會。

Q2 adjusted EBITDA came in at $3.8 million, reflecting our ongoing cost control efforts, including a reduction in force and the closure of our Salt Lake City warehouse. The adjusted EBITDA excludes $34.7 million of restructuring and one-time costs. Net inventory ended the quarter at $159 million, down 28% quarter-over-quarter and down 13% year-over-year. Free cash flow for the quarter was positive $15.4 million, our first quarter of positive free cash flow since Q1 of FY ‘22. And we ended the quarter with $224 million in cash, cash equivalents and highly rated securities.

第二季度調整後的 EBITDA 為 380 萬美元，反映了我們正在進行的成本控制工作，包括裁員和關閉我們的鹽湖城倉庫。調整後的 EBITDA 不包括 3470 萬美元的重組和一次性成本。本季度末淨庫存為 1.59 億美元，環比下降 28%，同比下降 13%。本季度的自由現金流為正 1540 萬美元，這是我們自 22 財年第一季度以來第一季度的正自由現金流。本季度末，我們擁有 2.24 億美元的現金、現金等價物和高評級證券。

In summary, on our cost structure, with the execution of our restructuring actions and our reduced advertising levels, we have now executed against all the actions needed to realize $135 million of cost reduction targets for FY ‘23. Additionally, we shipped our last fix from the Salt Lake City distribution center at the end of January and we have distributed the inventory across the remaining fulfillment centers in our network. We will begin to see cost savings from the closure in Q4. Our goal remains to achieve positive adjusted EBITDA and free cash flow in the short-term, while continuing to position ourselves for profitable growth in the future. And we believe we are well on our way to achieving these goals.

總之，在我們的成本結構上，隨著重組行動的執行和廣告水平的降低，我們現在已經執行了實現 23 財年 1.35 億美元成本削減目標所需的所有行動。此外，我們於 1 月底從鹽湖城配送中心運送了最後一次修復，我們已將庫存分配到我們網絡中的其餘運營中心。我們將開始看到第四季度關閉帶來的成本節約。我們的目標仍然是在短期內實現積極的調整後 EBITDA 和自由現金流，同時繼續為未來的盈利增長做好準備。我們相信我們在實現這些目標的道路上進展順利。

Now on to our outlook. For the remainder of the fiscal year, we expect to continue to face a challenge and highly promotional operating environment. With that said, we are leaning into our areas of differentiation and focusing on managing the things within our control. We will continue to responsibly manage our cost structure with the goal of staying adjusted EBITDA and free cash flow positive for the remainder of the year. For our fiscal Q3, we anticipate revenue to be between $385 million and $395 million. We expect adjusted EBITDA for the quarter to be between negative $5 million and positive $5 million, largely reflecting increased seasonal advertising spend as we continue into the spring summer season, where our CPAs are generally more efficient.

現在談談我們的展望。在本財年的剩餘時間內，我們預計將繼續面臨挑戰和高度促銷的運營環境。話雖如此，我們正傾向於我們的差異化領域，並專注於管理我們控制範圍內的事情。我們將繼續負責任地管理我們的成本結構，目標是在今年剩餘時間內保持調整後的 EBITDA 和自由現金流為正。對於我們的第三財季，我們預計收入將在 3.85 億美元至 3.95 億美元之間。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，這主要反映了隨著我們進入春夏季節，我們的註冊會計師通常效率更高，季節性廣告支出增加。

For the full year, FY ‘23, we now expect revenue to be between $1.625 billion$1.645 billion. We expect adjusted EBITDA for the year to be between breakeven to positive $10 million. Going forward, we remain relentlessly focused on liquidity and profitability. The improvements we have made in our cost structure will allow us to invest in growth as we continue to focus on improving our client experience. And over time, we expect the improved client experience will enable us to grow our net active revenue and free cash flow.

對於全年，即 23 財年，我們現在預計收入將在 16.25 億美元和 16.45 億美元之間。我們預計今年調整後的 EBITDA 將介於盈虧平衡和正 1000 萬美元之間。展望未來，我們將繼續不懈地關注流動性和盈利能力。我們在成本結構方面所做的改進將使我們能夠在繼續專注於改善客戶體驗的同時投資於增長。隨著時間的推移，我們預計改善的客戶體驗將使我們能夠增加淨活躍收入和自由現金流。

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。

Thank you. (Operator Instructions) Our first question comes from Youssef Squali with Truist. You may proceed.

謝謝。 （操作員說明）我們的第一個問題來自 Youssef Squali with Truist。你可以繼續。

Great, thank you very much. Hi, guys. Couple of questions. Good to hear from you, Katrina again. So the first question maybe for Katrina, can you just speak at a high level about how you see, I mean, you talked earlier about you on the one hand, you've had a lot of focus on the other, you have clarity on the path forward, when maybe can you just expand a little more about what pinpoint the two or three areas where you felt the Stitch Fix has had lost its focus, and then maybe, kind of what gives you the confidence that that you are back on the path that should ultimately get you to growth? And then maybe can you double click a little bit on your EBITDA margin guide of negative $5 million to positive $5 million and just help us that how you get there, obviously, I think you said gross margin should be around 42%, which really only leaves advertising sales and marketing and G&A as the other components. So maybe just provide a little more color on where you see those for the second half the year. That'd be very helpful. Thank you both.

太好了，非常感謝。嗨，大家好。幾個問題。很高興收到你的來信，又是卡特里娜颶風。所以第一個問題可能是針對卡特里娜颶風的，你能不能從高層次上談談你的看法，我的意思是，你早些時候談到了你的一方面，你已經非常關注另一方面，你很清楚前進的道路，也許你什麼時候可以稍微擴展一下你覺得 Stitch Fix 失去焦點的兩三個區域，然後也許，是什麼讓你有信心你又回來了最終應該讓你成長的道路？然後也許你可以雙擊你的 EBITDA 利潤率指南，從負 500 萬美元到正 500 萬美元，然後幫助我們了解你是如何到達那裡的，顯然，我認為你說毛利率應該在 42% 左右，這真的只有將廣告銷售和市場營銷以及 G&A 留作其他組成部分。因此，也許只是在下半年看到這些的地方提供更多顏色。那會很有幫助。謝謝你倆。

Great. Thanks, Youssef. Good to be back. I'll answer your first question. And then I will have Dan weigh in on the second around EBITDA margin. On kind of the focus and clarity, I think there's, there's innumerable examples that I could bring, I think, just at a very high level, as we thought about expanding the business and very ambitious way, we took a marketing approach that, that probably tried to bring people in to a variety of different customer segments. And very notably, we spent marketing dollars trying to bring people into a freestyle first experience as an example. So that's a place where not only did we find that that marketing of freestyle first wasn't as effective as what we had done historically in fixes. But it also actually made it harder for us to be able to be acquiring people into the Fix channel. And so that's – I think, one example of how that comes to life.

偉大的。謝謝，優素福。很高興回來。我會回答你的第一個問題。然後我將讓 Dan 在 EBITDA 利潤率方面權衡第二個問題。關於重點和清晰度，我認為我可以舉出無數的例子，我認為，只是在一個非常高的層次上，當我們考慮擴展業務和非常雄心勃勃的方式時，我們採取了一種營銷方法，即可能試圖將人們帶入各種不同的客戶群。非常值得注意的是，我們花費了營銷資金，試圖將人們帶入自由泳的首次體驗中作為一個例子。因此，在這個地方，我們不僅發現首先進行自由式營銷不如我們過去在固定式營銷中所做的那樣有效。但這實際上也讓我們更難將人們吸引到 Fix 渠道。所以這就是——我認為，這是如何實現的一個例子。

Another one is around inventory. We definitely built up an inventory in anticipation of a freestyle customer that, was a different set of inventory than fixes and also more unknown, it was a customer we hadn't served before. It was a channel we hadn't served before. And so, there was more risk in the inventory and going forward, we can use our 10 years plus of historical data to really be able to buy with confidence on the inventory side and that's another good example of focus. And the customer experience as well I mentioned, I mentioned, us to looking at preview as an example. And I think there's still other places where we can really kind of clean up the customer experience so that we're really maximizing value for the client and value for the shareholder at the same time.

另一個是關於庫存。我們肯定是在預期自由式客戶的情況下建立了一個庫存，這是一組不同於修復的庫存，而且更不為人知，這是我們以前沒有服務過的客戶。這是我們以前沒有服務過的頻道。因此，庫存方面存在更多風險，展望未來，我們可以利用我們 10 年以上的歷史數據，真正能夠在庫存方面充滿信心地購買，這是另一個很好的重點示例。我也提到過客戶體驗，我提到過，我們以預覽為例。而且我認為還有其他地方我們可以真正清理客戶體驗，以便我們真正同時為客戶和股東實現價值最大化。

In terms of confidence back to growth, I think, there's a lot of places where, yes, I think all of those places are areas where, the inventory front, I think we can feel confident looking at what we're doing going ahead for now. And on the marketing front, I think we have near-term results that show that things are working when Dan referenced that we saw customer acquisition cost down by 40%, compared to last year. And to me, that's a great example of how focus is kind of creating value in the business today. And I think we feel really confident that it's creating value in the business long-term. Dan, you want to talk about EBITDA?

就恢復增長的信心而言，我認為，有很多地方，是的，我認為所有這些地方都是庫存方面的領域，我認為我們可以自信地看待我們正在做的事情現在。在營銷方面，我認為我們的近期結果表明，當 Dan 提到我們看到客戶獲取成本與去年相比下降了 40% 時，一切都在發揮作用。對我來說，這是一個很好的例子，說明專注如何在當今的業務中創造價值。而且我認為我們真的很有信心，它正在為企業創造長期價值。丹，你想談談 EBITDA 嗎？

Yes. Hi, Youssef. On the on the EBITDA guide the negative $5 million to positive $5 million. Again, I think we've provided obviously revenue and gross margin. And we also provided that 6% to 7% advertising number for Q3, we're going to be on the higher end of that 6% to 7%, simply because as we enter our spring summer season, it's a very efficient quarter for us. We talked – Katrina talked about it. And we're very focused on the efficiencies within our marketing channel. And we just feel as we exited to Q2 and go into Q3, we're like what we're seeing. And so think of the Q3 as the higher end of that 6% to 7%. That leads us of course, with SG&A, excluding advertising on a run rate basis, after our restructuring, that gets you to that negative $5 million to positive $5 million, if, of course, if we're not seeing the efficiencies, we won't spend the advertising dollars. So we feel pretty good about the guidance. And of course, the level of spend that we're now targeting for advertising.

是的。嗨，優素福。在 EBITDA 上，將負 500 萬美元引導至正 500 萬美元。同樣，我認為我們已經提供了明顯的收入和毛利率。我們還提供了第三季度 6% 到 7% 的廣告數量，我們將處於 6% 到 7% 的較高端，因為當我們進入春夏季節時，這對我們來說是一個非常高效的季度.我們談過——卡特里娜颶風談到了它。我們非常關注營銷渠道的效率。我們只是覺得當我們退出第二季度並進入第三季度時，我們就像我們所看到的那樣。因此，將第三季度視為 6% 至 7% 的較高端。這當然會導致我們，SG&A，不包括運行率的廣告，在我們重組之後，這會讓你達到負 500 萬美元到正 500 萬美元，當然，如果我們沒有看到效率，我們就贏了'花廣告費。所以我們對指導感覺很好。當然，還有我們現在針對廣告的支出水平。

And just to be clear, that $34 million that I think you mentioned in one-time restructuring costs and other that hit the SG&A and expense line of 187 in Q2.

需要明確的是，我認為你在一次性重組成本中提到的 3400 萬美元，以及其他在第二季度達到 SG&A 和費用線 187 的成本。

It did.

它做了。

Our next question comes from Simeon Siegel with BMO Capital Markets. You may proceed.

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

Hi, this is Garrett Klingshirn on for Simeon. Thanks for taking our question today. Just noticing in the press release, you guys noticed, going back to more of a stylus focused approach is that kind of a de-emphasis maybe a little bit for kind of freestyle. And Katrina, you just mentioned getting inventories right from within the freestyle versus a Fix business, understanding how those are different. I'm just curious how you guys are thinking about that business going forward? And how you're planning – kind of how to work around some of some of the challenges maybe you've had there?

嗨，我是 Simeon 的 Garrett Klingshirn。感謝您今天提出我們的問題。只是在新聞稿中註意到，你們注意到，回到更多以手寫筆為中心的方法是那種對自由泳的一種去強調可能有點。卡特里娜颶風，你剛剛提到從自由泳和修復業務中獲取庫存，了解它們的不同之處。我很好奇你們是如何看待這項業務的發展的？你是如何計劃的——如何解決你可能遇到的一些挑戰？

Yes, thanks, Garrett. It's a good question. I think what we're – there's no question that freestyle adds value in ways that fixes didn't and go, I think the most clear way that we think about that is looking at the assortment data. And we've shared in call historically that we're seeing a different assortment being bought and freestyle than fixes. We're seeing more outerwear, shoes, accessories. And so that says to us that this is helping to fill a different need for our clients. That being said, as I mentioned in the last question, I think, the using freestyle is a customer acquisition vehicle as an example that was less effective. And so, what we're really trying to do is to say, where are areas of differentiation and personalization, styling are really at the core of that, especially if you think about our kind of competitive positioning relative to others. Those are spaces that we really uniquely own. And so as we think about what is the customer experience that best delivers, again, personalization, again styling, I think freestyle can be a component of that but we're probably thinking of it more as one ecosystem that has a more clear customer journey, rather than thinking of as kind of separate business units.

是的，謝謝，加勒特。這是個好問題。我認為我們是什麼——毫無疑問，自由式以固定方式沒有的方式增加了價值，我認為我們考慮的最清晰的方式是查看分類數據。從歷史上看，我們在電話中分享過，我們看到購買的品種和自由泳與固定泳不同。我們看到更多的外套、鞋子和配飾。所以這對我們說，這有助於滿足我們客戶的不同需求。話雖這麼說，正如我在上一個問題中提到的，我認為使用自由式是一種不太有效的客戶獲取工具。因此，我們真正想做的是說，差異化和個性化領域在哪裡，造型確實是其中的核心，尤其是當你考慮我們相對於其他公司的競爭定位時。這些是我們真正獨特擁有的空間。因此，當我們考慮什麼是最能提供的客戶體驗時，再次是個性化，再次是造型，我認為自由式可以成為其中的一個組成部分，但我們可能更多地將其視為一個具有更清晰客戶旅程的生態系統，而不是將其視為一種獨立的業務部門。

Great. Appreciate that. And just as a quick follow-up, I'm just looking at the 42% guidance for gross margin for the remainder of the year. And then your comments on how the difference from 1Q to 2Q is about 100 bps of markdown pressure, are you guys seeing kind of a return to markdown levels where you were going back a few quarters, I'm just curious how you're planning about markdown pressure for kind of the back half of the year and kind of what you're seeing more broadly within your customers and their ability in their willingness to shop on kind of more of a full price level compared to kind of a discounted one?

偉大的。感謝。作為快速跟進，我只關註今年剩餘時間 42% 的毛利率指導。然後你評論說第一季度到第二季度的降價壓力大約是 100 個基點關於今年下半年的降價壓力，以及您在客戶中更廣泛地看到的情況，以及與打折商品相比，他們願意購買更多全價商品的能力？

Yes, the way we approach we talked about this in the past and thanks for the question, the way we've approached markdown is really focused on where we think we have access or the wrong inventory and using our freestyle channel to that inventory. And we've seen success in that, as opposed to the option of selling it out to a third-party liquidator. And so we've seen success in that. And we will continue to utilize that. Although, as you can see from our inventory levels, now we've come down considerably, and we feel we've right sized our inventory, we feel very good about the inventory position that we're in now in terms of total dollars, and we still have some buckets to work through. And so we are using the freestyle channel for that. And in the Fix channel, we are not discounting a lot, we simply aren't doing that clients love with the styling service that we give them. And we have not seen the need to discount in the Fix business. And we don't anticipate doing that going forward.

是的，我們過去討論過這個問題的方式，感謝您提出這個問題，我們處理降價的方式實際上集中在我們認為我們可以訪問或錯誤庫存的地方，並使用我們的自由式渠道來訪問該庫存。我們已經看到了成功，而不是將其出售給第三方清算人的選擇。所以我們已經看到了成功。我們將繼續利用它。雖然，正如您從我們的庫存水平中看到的那樣，現在我們已經大幅下降，並且我們認為我們的庫存規模是正確的，但我們對我們現在的總美元庫存狀況感到非常滿意，我們還有一些工作要做。因此，我們為此使用了自由式頻道。在 Fix 渠道中，我們並沒有打很多折扣，我們只是沒有做客戶喜歡我們為他們提供的造型服務。而且我們還沒有看到 Fix 業務需要打折。我們預計今後不會這樣做。

Our next question comes from Mark Altschwager with Baird. You may proceed.

我們的下一個問題來自 Baird 的 Mark Altschwager。你可以繼續。

Hi, this is Amy Teske on for Mark. Thanks for taking our question. On the inventory point, as you've worked down inventory and pulled back on your receipts, what is your level of comfort that you now have the right type of inventory? So how do you think about the composition of your inventory between casual and dressing styles and product categories? Thank you.

嗨，我是馬克的艾米特斯克。感謝您提出我們的問題。在庫存方面，當您減少庫存並收回收據時，您對現在擁有正確類型的庫存感到滿意嗎？那麼，您如何看待休閒和著裝風格以及產品類別之間的庫存構成？謝謝。

Yes, I'll take that one. That's a great question, Amy. And thanks for asking it. First of all, we talked about inventory in our Q4 again in our Q1 results and how we had a lot of inventory. And we simply needed to work it down. And we've done that. And a lot of that, of course was getting rid of excess inventory and or the wrong styles or brands of inventory, we're in a much better position. Now as I mentioned, we still have a little bit of work to do on the inventory that is going to be short-term. And that's included in our guidance going forward. But we feel really good about the brands that we're targeting and with a big focus on our on our exclusive brands, which are trending very well for us. And in fact, I'll just share that we did notice in January, where we were soft on some of our exclusive brands on our customers told us they wanted that and we quickly pivoted and where we were short on inventory, we chased back into it. And that's a great sign for us that our customers love our exclusive and our Stitch Fix only brands that we are selling and so we are going to continue to focus on that in the very near-term as we get into spring, summer and then as we get back into fall winter, a year from now.

是的，我會拿那個。這是一個很好的問題，艾米。感謝您的提問。首先，我們在第一季度的結果中再次談到了第四季度的庫存，以及我們如何擁有大量庫存。我們只需要解決它。我們已經做到了。其中很多，當然是擺脫了過多的庫存和/或錯誤的款式或品牌的庫存，我們處於一個更好的位置。現在正如我提到的，我們仍然需要對短期庫存做一些工作。這包含在我們未來的指導中。但我們對我們所針對的品牌感覺非常好，並且非常關注我們的獨家品牌，這些品牌對我們來說趨勢非常好。事實上，我只想分享一下，我們在 1 月份確實注意到了，我們對我們的一些獨家品牌持軟態度，因為我們的客戶告訴我們他們想要那個，我們很快就調整了方向，在我們庫存短缺的地方，我們追回了它。這對我們來說是一個很好的跡象，表明我們的客戶喜歡我們銷售的獨家品牌和 Stitch Fix 獨家品牌，因此我們將在短期內繼續關注這一點，因為我們將進入春季、夏季，然後是一年後，我們又回到了秋冬。

Our next question comes from Ed Yruma with Piper Sandler. You may proceed.

我們的下一個問題來自 Ed Yruma 和 Piper Sandler。你可以繼續。

Hey, thanks very much for taking my question and welcome back, Kat. I guess just the bigger picture question you guys are really known for personalization. You have talked about this a lot today, can you talk about competitive gap, you think that your competitors have gotten better? And since the inception of your business and maybe Kat, do you have any observations of things that have changed adversely since the last one and I will come back there looking to rectify quickly? We would appreciate that. Thank you.

嘿，非常感謝你回答我的問題，歡迎回來，Kat。我想只是更大的問題，你們真的以個性化而聞名。你今天講了很多，能不能講一下競爭差距，你覺得你的競爭對手變好了？自從您的業務開始以來，也許還有 Kat，您是否對自上次以來發生的不利變化有任何觀察，我會回到那裡尋求迅速糾正？我們將不勝感激。謝謝。

Thank you, Ed. I think I got your question here. So in terms of just more of the competitive gap, honestly, I feel really strong about our capabilities. And we've been able to be in this business for 10 years plus with a history of profitability with a history of being able to deliver cash flows. And there's not a lot in the competitive set that are able to claim the same thing. And so, the focus that we've had around data science, the focus that we've had around personalization, I strongly believe that we continue to lead on that front. And I feel just as good, if not better about that coming back into the role. In terms of things that I think your question was more of just like what has adversely changed? I think I spoke to it on the call, but I really do think it's focused, I do think hindsight is 2020. And I think we had some really ambitious visions that we were chasing after and with kind of chasing an ambitious big vision came a kind of reduction of focus on what I would consider our core differentiators, which are really around personalization and the styling. And so, I think a lot of what we've been talking about internally is just how can we make sure that everything that we are doing with our valuable resources and time are really focusing again, delivering that for our clients and ultimately our shareholders and being able to deliver an experience that feels personalized for all of our clients and making sure that everything that we invest in achieves that goal.

謝謝你，埃德。我想我在這裡得到了你的問題。因此，就更多的競爭差距而言，老實說，我對我們的能力感到非常強大。我們已經能夠從事這項業務 10 年，並且擁有盈利歷史和能夠提供現金流的歷史。並且在競爭環境中沒有多少人能夠聲稱同樣的事情。因此，我們對數據科學的關注，對個性化的關注，我堅信我們將繼續在這方面處於領先地位。我對回到這個角色感覺同樣好，如果不是更好的話。就我認為您的問題更像是發生了不利變化的事情而言？我想我在電話中談到了它，但我確實認為它是專注的，我確實認為事後看來是 2020 年。而且我認為我們有一些我們正在追求的真正雄心勃勃的願景，並且在某種程度上追逐一個雄心勃勃的大願景來了減少對我認為是我們核心差異化因素的關注，這些差異化因素實際上是圍繞個性化和样式設計的。因此，我認為我們在內部討論的很多內容就是我們如何才能確保我們用寶貴的資源和時間所做的一切真正再次集中註意力，為我們的客戶以及最終為我們的股東和能夠為我們所有的客戶提供一種個性化的體驗，並確保我們投資的一切都能實現這一目標。

Our next question comes from Trevor Young with Barclays. You can proceed.

我們的下一個問題來自巴克萊銀行的 Trevor Young。你可以繼續。

First one Katrina just on the testing of discontinuing the Fix Preview, are you getting any sort of signal that keep rates are eroding in those circumstances? And then more broadly big picture, do you feel like the cost space is in a good place now, to set the stage for recovery in some future quarter after we go through kind of the reset on core fixes here or is there some work to be done and maybe even some reinvestment to be done on the tech side to get that into a better place? Just any thoughts on that would be appreciated?

第一個卡特里娜颶風剛剛停止 Fix Preview 的測試，你是否收到任何信號表明在這種情況下利率正在下降？然後從更廣泛的角度來看，您是否覺得成本空間現在處於一個好位置，以便在我們在這裡對核心修復進行某種重置之後為未來某個季度的複蘇奠定基礎，或者是否有一些工作要做完成，甚至可能在技術方面進行一些再投資以使其進入更好的位置？對此有任何想法嗎？

I'll take the first one and have Dan talk more about the cost basis. On this preview, I mean, one way to really think about it is to try to maximize the ROI and LTV is a given cohort. And so as we do some segmentation, we can see at a high level that overall, we saw AOV go up with the ability to have access to Fix Preview, but once you dig in, there's going to be some cohorts where we see people more likely to cancel when they see a Fix Preview. And so what we're really trying to optimize for are those LTVs. And so we – I think we're able to do is to fine tune, I guess a little bit more at a more personalized level of where we're going to be deploying Fix Preview to be able to maintain that benefit that you mentioned, to keep rate an AOV for the populations for whom we know that that will occur, while at the same time reducing cancellations and making sure that we are retaining and engaging clients that in all of our cohorts by eliminating Fix Preview from those who we don't think will benefit from it. And I would say also, from a customer survey perspective, like one of the things that we hear is that one of the real benefits of Stitch Fix is surprise and delight. And so to be able to – for some clients, you can think of it as a lack of agency, but you can also think of it as actually allowing people to have that surprise and delight. Somebody said to me with I love this quote of like, as an adult, you just don't get a whole lot of good surprises in your life. And Stitch Fix can be one of those. And so we know there are clients who really, really value that and actually being able to continue to maintain that for those clients is valuable and LTV positive for those clients. Dan, you want to answer the question on the cost basis?

我會選擇第一個，讓 Dan 多談談成本基礎。在這個預覽中，我的意思是，真正考慮它的一種方法是嘗試最大化 ROI，而 LTV 是給定的隊列。因此，當我們進行一些細分時，我們可以在總體上看到更高的層次，我們看到 AOV 具有訪問 Fix Preview 的能力，但是一旦你深入研究，就會有一些群體，我們會看到更多的人當他們看到修復預覽時可能會取消。因此，我們真正要優化的是那些 LTV。所以我們 - 我認為我們能夠做的是微調，我想在我們將部署 Fix Preview 的更個性化的水平上更多一點，以便能夠保持你的好處提到，為我們知道會發生這種情況的人群保持 AOV 率，同時減少取消，並確保我們通過消除那些我們的人群中的 Fix Preview 來保留和吸引我們所有隊列中的客戶不要認為會從中受益。我還要說，從客戶調查的角度來看，就像我們聽到的一件事一樣，Stitch Fix 的真正好處之一是驚喜和喜悅。因此，為了能夠——對於某些客戶，您可以將其視為缺乏代理，但您也可以將其視為實際上允許人們擁有那種驚喜和喜悅。有人對我說我喜歡這句話，就像，作為一個成年人，你的生活中並沒有太多驚喜。而 Stitch Fix 就是其中之一。因此，我們知道有些客戶真的非常重視這一點，並且實際上能夠繼續為這些客戶維持這一點對這些客戶來說是有價值的，並且 LTV 是積極的。丹，你想根據成本回答這個問題嗎？

Yes. On the total cost, when you look at where we ended Q2 and adjusted for restructuring, we're back to fiscal 2019 SG&A excluding SPC. And we feel very good about that. And going forward, and there's still more efficiency to have in my prepared remarks. You heard us talk about gross margin and the opportunities that we see there. There's also this further opportunity on our footprint to better monetize that as we reduce our corporate office space. We have variable efficiency projects that are ongoing. So yes, I feel the cost structure is in very good space – in a very good place. And I think there's tremendous opportunity to improve it going forward. So we're in a good place from a cost standpoint and a liquidity standpoint.

是的。關於總成本，當您查看我們在第二季度末的位置並針對重組進行調整時，我們回到了 2019 財年的 SG&A，不包括 SPC。我們對此感覺很好。展望未來，在我準備好的發言中還有更多的效率。你聽到我們談論毛利率和我們在那裡看到的機會。隨著我們減少公司辦公空間，我們的足跡也有更多機會更好地從中獲利。我們有正在進行的可變效率項目。所以是的，我覺得成本結構的空間非常大——在一個非常好的地方。而且我認為未來有巨大的機會來改進它。因此，從成本和流動性的角度來看，我們處於有利位置。

Our next question comes from David Bellinger with ROTH MKM. You may proceed.

我們的下一個問題來自 ROTH MKM 的 David Bellinger。你可以繼續。

On the cost per acquisition being down 40% in the quarter, how much of that is internally driven through some type of channel mix shift and the ROI your where that's getting better versus some of call it the external factors that play within the broader apparel category?

關於本季度每次獲取成本下降 40%，其中有多少是通過某種類型的渠道組合轉變和投資回報率在內部驅動的，你認為這是在更廣泛的服裝類別中發揮作用的外部因素？

I can start and might benefit from some of Dan's weighing in here. But I think honestly a lot of that is really more from a perspective of focus. And so if you think about where we were last year, we were doing more freestyle first marketing, we were driving people to an immediate purchase experience instead of driving people into a styling experience through fixes. And just very simply put that freestyle first marketing was not as efficient as our core Fixed experience. And so I think just to be able to have the marketing messages be more clear around the benefits of personalization and styling and to be really focused on driving people through one channels and conversion has been driving that efficiency. We definitely are always looking at diversifying our channels and so we have our tried and true channels that we know perform. And those have performed well as you've kind of heard in the numbers. And at the same time, we're always experimenting to make sure that we're getting all the emerging channels and to make sure that we're kind of exercising that muscle of acquiring and converting clients in all the new places that we see our clients kind of spending time. I don't know, Dan, if you have anything to add to that.

我可以開始，並且可能會從丹在這裡的一些權衡中受益。但老實說，我認為其中很多更多的是從專注的角度來看。因此，如果你想想我們去年的處境，我們正在做更多的自由式優先營銷，我們正在推動人們立即購買體驗，而不是通過修復來推動人們進入造型體驗。簡單地說，自由式優先營銷不如我們的核心固定體驗有效。因此，我認為只要能夠讓營銷信息更加清楚地圍繞個性化和造型的好處，並真正專注於通過一個渠道和轉化來推動人們，就可以提高效率。我們肯定一直在考慮使我們的渠道多樣化，因此我們擁有我們知道執行的久經考驗的真實渠道。正如您在數字中聽到的那樣，這些表現良好。與此同時，我們一直在嘗試確保我們獲得所有新興渠道，並確保我們在我們看到的所有新地方鍛煉獲取和轉化客戶的力量客戶有點花時間。丹，我不知道你是否還有什麼要補充的。

Yes, the only – I presume – I 100% agree with what Katrina said. And I think I would simply add that part of the experiences where we really hardened the funnel really helped with conversion of traffic, and therefore the efficiency of the marketing spend. In addition to just being very focused on the next dollar spent within the channels. And is that an efficient spend. And I think the marketing team has done a tremendously good job of diversifying the channels, but then focusing on the efficiency and making sure we're bringing in the right clients, which we feel very good about. And I think we've talked about that in the earlier remarks.

是的，唯一的——我想——我 100% 同意卡特里娜颶風所說的話。而且我想我會簡單地添加我們真正強化漏斗的那部分體驗，這確實有助於流量的轉換，從而提高了營銷支出的效率。除了非常關注在渠道內花費的下一美元。這是一種有效的支出。而且我認為營銷團隊在渠道多元化方面做得非常好，但隨後專注於效率並確保我們引入合適的客戶，我們對此感覺非常好。我想我們在之前的評論中已經談到了這一點。

And just one other follow-up, I think you mentioned some type of chasing inventory. It sounds like you're more comfortable with the assortment. So what's the next step, if we think bigger picture here and getting your core customer back and spending again? Is there some type of refresh needed on top of that on the inventory side or is there more of a technology connectivity issue you need with your core customers to get them back again?

還有一個後續行動，我想你提到了某種類型的追逐庫存。聽起來您對分類更滿意。那麼下一步是什麼，如果我們在這裡考慮更大的圖景並讓您的核心客戶回來並再次消費？在庫存方面是否需要某種類型的更新，或者您是否需要與核心客戶建立更多的技術連接問題才能再次吸引他們？

Yes, I mean, I can take that. And I think to be clear, like we're seeing that customer perform in a pretty healthy way. I mean, we're seeing our AOV be pretty consistent on the inventory side. It's of course been gradual over the last few months of kind of evolving into the inventory next that we want, but we feel really good about where we are in the inventory perspective. That being said like, there's definitely opportunity, I think, we see, Dan mentioned, we're seeing some cohort weakness. There is no question. There's some macro headwind, but I'm not willing to accept that it's all macro, I think there are still opportunities for us to improve the customer journey for us to improve the ways that we're serving our clients so that they can have the best possible experience that then leads to LTV, it leads to shareholder value. And so I definitely still think that there's a lot of opportunity. But as we kind of dig in and look at how our Fix is doing, how are people feeling in their actual transactions, we're actually seeing goodness there. And I think, it's on us now to be able to deliver more goodness to the rest of the customer experience.

是的，我的意思是，我可以接受。而且我認為很清楚，就像我們看到客戶以非常健康的方式表現一樣。我的意思是，我們看到我們的 AOV 在庫存方面非常一致。在過去的幾個月裡，它當然是逐漸演變成我們想要的下一個庫存的，但我們對我們在庫存方面所處的位置感到非常滿意。話雖這麼說，我認為肯定有機會，我們看到，丹提到，我們看到了一些隊列弱點。毫無疑問。有一些宏觀逆風，但我不願意接受這一切都是宏觀的，我認為我們仍然有機會改善客戶旅程，以改善我們為客戶提供服務的方式，以便他們能夠可能導致 LTV 的最佳體驗，它會帶來股東價值。所以我絕對仍然認為有很多機會。但是，當我們深入研究並查看我們的 Fix 的表現時，人們在實際交易中的感受如何，我們實際上在那裡看到了好處。而且我認為，現在我們有責任為其他客戶體驗提供更多的好處。

Our next question comes from Ike Boruchow with Wells Fargo. You may proceed.

我們的下一個問題來自富國銀行的 Ike Boruchow。你可以繼續。

Hi, everyone, this is Jesse Sobelson for Ike. It looks like taking down inventory was a major source of cash this quarter. So on the liquidity front, I'm just curious, how much cash do you guys need to run the business? And what should investors expect regarding cash flow generation throughout the rest of the year?

大家好，我是 Ike 的 Jesse Sobelson。看起來減少庫存是本季度的主要現金來源。所以在流動性方面，我很好奇，你們需要多少現金來經營業務？投資者對今年餘下時間的現金流產生有何期待？

Yes, thanks for the question. And so yes, we did have a source of cash come from our inventory position, which we implied was going to happen last quarter as we brought our inventory down, and on a go forward how much cash do we need to run the position that from a liquidity standpoint, we're in a very good position, we have $323 million, $223 million of cash equivalents. And we have a credit facility which we don't plan to use. And so going forward, as we guided to a positive H2 adjusted EBITDA, we talked about EBITDA is a great proxy for cash flow for us, simply because we do not have a lot of CapEx, and we do not anticipate a lot of CapEx spend over the next several quarters. And so we feel that both our EBITDA and cash flow are trending positive for H2. And we will get more guidance on FY ‘24 at a later date. But overall, we feel very good about the liquidity position that we're in and the cash flow that we've generated in both Q2 and for H2, as we go forward.

是的，謝謝你的提問。所以是的，我們確實有一個現金來源來自我們的庫存頭寸，我們暗示這將在上個季度發生，因為我們降低了庫存，並且在未來我們需要多少現金來經營這個頭寸從流動性的角度來看，我們處於非常有利的地位，我們有 3.23 億美元、2.23 億美元的現金等價物。我們有一個我們不打算使用的信貸工具。因此，展望未來，當我們指導下半年調整後的 EBITDA 為正時，我們談到 EBITDA 是我們現金流量的一個很好的代表，僅僅是因為我們沒有很多資本支出，而且我們預計不會有很多資本支出支出在接下來的幾個季度裡。因此，我們認為下半年的 EBITDA 和現金流都呈正趨勢。我們將在晚些時候獲得有關 FY'24 的更多指導。但總的來說，我們對我們所處的流動性狀況以及我們在第二季度和下半年產生的現金流感到非常滿意，因為我們向前邁進。

Our next question comes from Blake Anderson with Jefferies. You may proceed.

我們的下一個問題來自 Jefferies 的 Blake Anderson。你可以繼續。

Hi, thanks for taking our question. Wanted to revisit the freestyle topic and how the tone has seemed to maybe change a little bit on that. This is more of a philosophical one. But should we expect any strategic changes to that business before a new CEO is announced? Just wondering Katrina, how much influence we could have on that business in the short-term? Thank you.

您好，感謝您提出我們的問題。想重新討論自由泳主題以及基調似乎可能會有所改變。這更像是一種哲學。但是，在宣布新 CEO 之前，我們是否應該期待該業務的任何戰略變化？只是想知道卡特里娜颶風，我們在短期內對該業務有多大影響？謝謝。

Yes, thanks, Blake for the question. I mean, we're always evolving to experience and so at a very high level like I really don't see a big foundational shift in the strategy I think the strategy of focusing on personalization and focusing on styling and focusing on the areas that we know are valuable areas of differentiation for our client, I think it's hard to imagine that we would deviate from that. That being said, like, we are always doing experiments, we are always doing AB test to better understand what are we doing that to what can we be doing differently or better in order to optimize that client journey to drive LTV, to drive value for our clients, to drive profitability and long-term growth. And so we are always making changes. And so hopefully, what I can say is like, you can probably expect to see some small changes in terms of the way that that the customer journey evolves over time. But I honestly, I wouldn't see them as like fundamental big changes, I think we know that freestyle adds value. We know that there – we know which ways in which it adds value. And so really, it's about how do we make sure to tailor and target the right customer experience so that clients are getting the most value out of their experience with Stitch Fix and thus, we are getting the most value out of clients that we acquire.

是的，謝謝布萊克提出的問題。我的意思是，我們一直在不斷發展以體驗，所以在一個非常高的水平上，我真的沒有看到戰略的重大轉變，我認為專注於個性化、專注於造型和專注於我們所關注的領域的戰略知道對我們的客戶來說是有價值的差異化領域，我認為很難想像我們會偏離這一點。話雖這麼說，我們總是在做實驗，我們總是在做 AB 測試，以更好地了解我們在做什麼，以及我們可以做些什麼不同或更好的事情，以優化客戶旅程以推動 LTV，推動價值我們的客戶，以推動盈利能力和長期增長。所以我們總是在做出改變。因此，希望我能說的是，您可能會期望看到客戶旅程隨時間演變的方式發生一些小變化。但老實說，我不會將它們視為根本性的重大變化，我認為我們知道自由泳會增加價值。我們知道那裡 - 我們知道它增加價值的方式。所以真的，這是關於我們如何確保定制和瞄準正確的客戶體驗，以便客戶從他們使用 Stitch Fix 的體驗中獲得最大價值，因此，我們從我們獲得的客戶中獲得最大價值。

And maybe I missed it, but did you talk about kind of trends by month throughout the quarter and any commentary you guys can provide on the quarter-to-date, especially how that – how the budget shopper is holding up? Thanks so much.

也許我錯過了它，但是您是否談到了整個季度每個月的趨勢以及你們可以提供的本季度迄今為止的任何評論，尤其是預算購物者的表現如何？非常感謝。

Yes, I can take that. So, we did not provide trends by quarter for our Q2. I will say that, February has largely been as expected for us. We are – again the guidance that we gave of course, takes into account 5 weeks of February and we are not seeing anything that is out of the ordinary where we have seen a change in trajectory to the negative. So, we continue to see our keep rates trending positively. There might be some frequency with the cohorts analysis that we talked about for Q2 to see that trend continue. We haven't looked at that yet for Q3, but we will, but no real trend update beyond what we have provided in the – for the guidance for Q3 and the commentary we gave on Q2.

是的，我可以接受。因此，我們沒有提供第二季度的季度趨勢。我要說的是，2 月基本上符合我們的預期。我們是——當然，我們給出的指導再次考慮了 2 月的 5 週，我們沒有看到任何不尋常的事情，我們已經看到軌跡向負面變化。因此，我們繼續看到我們的利率保持積極趨勢。我們在第二季度談到的同期群分析可能會出現一些頻率，以看到這種趨勢繼續下去。我們還沒有研究第三季度的情況，但我們會，但除了我們在第三季度的指導和我們對第二季度的評論中提供的內容之外，沒有真正的趨勢更新。

Our next question comes from Tom Nikic with Wedbush Securities. You may proceed.

我們的下一個問題來自 Wedbush Securities 的 Tom Nikic。你可以繼續。

Dan, quick one for you. Sorry, if I missed this, did you actually say what the marketing expense was in Q2 as either in dollars or as a percentage of revenue?

丹，快給你一個。抱歉，如果我漏掉了這個，你真的說過第二季度的營銷費用是多少，是美元還是佔收入的百分比？

We did 5%.

我們做了5%。

And Kat, welcome back to the CEO role in an interim basis, but when we think about the permanent CEO role or the successor, what are you looking for like what skill sets – are you looking for like what optimally who is – what attributes would your ideal candidate have for the permanent CEO seat? Thanks.

Kat，歡迎臨時回到 CEO 的角色，但是當我們考慮永久 CEO 角色或繼任者時，你在尋找什麼，比如什麼技能組合——你在尋找什麼樣的最佳人選？ “您的理想人選具備哪些特質才能獲得 CEO 常任席位？謝謝。

Yes, so we have kicked off a search. We have engaged with the search firm and we have been having conversations with candidates quite a few conversations with candidates. And overall I feel excited and optimistic about kind of the quality of people that we are meeting. And at the highest level, like, are very simply like, I really do think it's having a history of delivering results and executing a business that our business is fairly complex. And so, I think somebody who has had experience in a business that has similar complexity to ours and have a kind of history of delivering results is, of course, first and foremost, important. And then relatedly, we have a large company that has a lot of people in different types of roles. And so that leadership and someone who has a natural leadership and somebody who is going to be able to be successful and leading a diverse organization is really important. And so at the highest level, I think those are two things that that we're really looking for. But we've kind of talked and as we have had a lot of conversations, we have had a lot of candidates who have firsthand experience with Stitch Fix who know the business well and feel really connected to the business and the customer. And I think we are excited about the people we are meeting, so optimistic.

是的，所以我們已經開始了搜索。我們已經與獵頭公司進行了接觸，並且我們一直在與候選人進行對話，與候選人進行了多次對話。總的來說，我對我們遇到的人的素質感到興奮和樂觀。在最高級別，就像，非常簡單，我真的認為它有交付結果和執行業務的歷史，我們的業務相當複雜。因此，我認為，在與我們的業務具有相似複雜性的業務中有過經驗並且具有交付成果的歷史的人當然是最重要的。然後相關地，我們有一家大公司，有很多人擔任不同類型的角色。因此，領導力和具有天生領導力的人以及能夠成功並領導多元化組織的人非常重要。因此，在最高級別，我認為這是我們真正需要的兩件事。但是我們已經進行了某種程度的交談，並且由於我們進行了很多對話，所以我們有很多候選人對 Stitch Fix 有第一手經驗，他們非常了解業務並且感覺與業務和客戶真正相關。而且我認為我們對我們遇到的人感到興奮，非常樂觀。

Our next question comes from Kunal Madhukar was UBS. You may proceed.

我們的下一個問題來自 Kunal Madhukar，是瑞銀。你可以繼續。

Hi, thanks for taking the question. One more housekeeping and then one more longer term. So on the housekeeping side, can you help us understand the LTM active clients has been declining for the past five quarters now? How should we kind of think of the trend for LTM active clients going forward? And then Katrina, you talked about the eventual return to growth and you also talked about having a lot more visibility on the business. So can you help us understand in your mind how you are thinking of growth going into 2024 and maybe into 2025, when are we going to get to growth? And part of the reason is, in fiscal 4Q of this year, that is going to be a 14-week period rather than a 13. So, the guide does not inspire a lot of confidence. Thank you.

您好，感謝您提出問題。多一份家政服務，然後再多一份長期服務。那麼在客房服務方面，您能否幫助我們了解 LTM 活躍客戶在過去五個季度中一直在下降？我們應該如何看待 LTM 活躍客戶未來的趨勢？然後卡特里娜颶風，你談到了最終恢復增長，你也談到了對業務的更多了解。那麼，您能否幫助我們了解您如何看待 2024 年甚至 2025 年的增長，我們什麼時候才能實現增長？部分原因是，在今年第四財季，這將是 14 周而不是 13 週。因此，該指南並沒有激發很多信心。謝謝。

So I'll take the RPAC question. RPAC is a trailing metric. It's trailing 12-month metric on actives. And so there is a lot of math that goes into the mix of RPAC. And so – and I know your models take into account RPAC, but I think the best way we can say that is well, we are seeing some cohort degradation in terms of spend, which will impact RPAC. Mix is a bigger impact of RPAC – mix of the tenure of our clients. We have mentioned in the past that our older clients spend less our new clients spend more as their closets get filled up. And so we will continue to talk about RPAC from an actual basis, but we are not guiding the future RPAC. That being said, I think it's safe to say that, where we might see some cohort degradation on spend and some mix, we are not expecting big reductions in RPAC on a go forward basis. So we will probably see some of that because of the spend in cohort on a year-over-year, but we don't think it's going to be material. Our clients do continue to spend with us. They do continue to stay with us. The newer clients that we are bringing in as we look at them are cash flow positive clients that we talked about the near-term ROI, all that will have the effect eventually of stabilizing that RPAC and ultimately bringing it up, but that's going to happen over time.

所以我會回答 RPAC 問題。 RPAC 是尾隨指標。它是活躍度的尾隨 12 個月指標。因此，在 RPAC 的組合中有很多數學運算。所以 - 我知道你的模型考慮了 RPAC，但我認為我們可以說的最好的方式是，我們看到在支出方面出現了一些隊列退化，這將影響 RPAC。 Mix 是 RPAC 的一個更大的影響——混合我們客戶的任期。我們過去曾提到，我們的老客戶花得更少，而我們的新客戶花得更多，因為他們的衣櫥裡裝滿了東西。因此，我們將繼續從實際基礎上討論 RPAC，但我們不會指導未來的 RPAC。話雖這麼說，我認為可以肯定地說，我們可能會看到一些隊列支出下降和一些混合，我們預計 RPAC 不會在前進的基礎上大幅減少。所以我們可能會看到其中的一些，因為同齡人的支出同比增長，但我們認為這不會很重要。我們的客戶確實會繼續與我們一起消費。他們確實繼續和我們在一起。在我們看來，我們引入的新客戶是現金流為正的客戶，我們談到了近期的投資回報率，所有這些最終都會產生穩定 RPAC 並最終提升它的效果，但這將會發生隨著時間的推移。

Thank you.

謝謝。

Sorry, I think we want to get to the second.

抱歉，我想我們想談談第二個。

So, the part two is more around like how am I thinking about the eventual return to growth, is that? Okay, I think I mean, Dan mentioned, I think – I totally agree with everything that Dan mentioned. And I would just add also that in our business, so much of our business is serving clients that are returning, and that's a great part of our business. We generate a lot of revenue from our existing customer base. And so all of the benefits that we – all the things that we are able to do to be able to make that client more valuable. And so all of the ways in which we can reengage that client, all the ways in which we can offer those clients reasons to come back also add and so we are always thinking about new clients, we are also thinking about how do we make sure that our existing base is healthy. And I think we have seen some positive signals that we have been excited about and feel really confident that we are doing the right things and the things we need to be doing right now.

所以，第二部分更像是我如何考慮最終恢復增長，是嗎？好吧，我想我的意思是，丹提到過，我想——我完全同意丹提到的一切。我還要補充一點，在我們的業務中，我們的大部分業務都是為回頭客提供服務，這是我們業務的重要組成部分。我們從現有客戶群中獲得了大量收入。因此，我們的所有好處 - 我們能夠做的所有事情都能夠使該客戶更有價值。因此，我們可以重新吸引該客戶的所有方式，我們可以為這些客戶提供回來理由的所有方式也增加了，因此我們一直在考慮新客戶，我們也在考慮如何確保我們現有的基礎是健康的。而且我認為我們已經看到了一些積極的信號，我們對此感到興奮，並且非常有信心我們正在做正確的事情以及我們現在需要做的事情。

Our next question comes from Janet Joseph Kloppenburg with JJK Research Associates. You may proceed.

我們的下一個問題來自 JJK Research Associates 的 Janet Joseph Kloppenburg。你可以繼續。

I just wanted to follow-up on that question is, it seems to me that and please correct me when I am wrong that you are going to be spending your investment, will spending will shift to a higher degree of investing in fix and low degree in freestyle and that should drive up your active customer participation and your sales. But I think that's what you are saying and that you will use freestyle as to some extent as a liquidation channel for fix, but that your investment spending will go back towards the personalization fix business and that, that should help to improve the EBITDA performance of the company as well? And does it mean that maybe the advertising rates can stay below 7%, 8% as we go forward or is that something that needs to be tested and refined? Thank you.

我只是想跟進這個問題，在我看來，如果我錯了，請糾正我，你將花費你的投資，支出會轉向更高程度的固定投資和低程度投資嗎？自由泳，這應該會提高您的積極客戶參與度和銷售額。但我認為這就是你所說的，你將在某種程度上使用自由泳作為修復的清算渠道，但你的投資支出將回到個性化修復業務，這應該有助於提高 EBITDA 的表現公司也是？這是否意味著隨著我們的前進，廣告費率可能會保持在 7%、8% 以下，或者這是否需要測試和完善？謝謝。

Sure. I can answer at a high level and then Dan can kind of weigh in on more of the specifics. But I mean I think at a high level, the way to think about it is, that we are really focusing the business around personalization and styling. And yes, Fix is a very big part of that. And having a more focused messaging from a marketing perspective helps us to drive marketing efficiency, having a more focused point of view around who the client is. I think one of the challenges with acquirer, trying to acquire freestyle for the clients was that, we were definitely deviating from our historical client and trying to kind of – trying to have many different messages, and to actually have an assortment that back that. And so simplifying on the inventory side also delivers efficiency. And freestyle definitely still has a role to play in order to be able to help our client to fill in their closet, to be able to engage in between fixes. And so we definitely are going to continue to have to be thinking about how to freestyle add value to that client experience. But I would say that the investing is more around thinking more holistically around, what is the Fix – what is the Stitch Fix ecosystem and how do all these pieces fill in together in order to drive the best LTV and experience for our clients, but then also, of course delivering results for our shareholders. So, maybe I will – and Dan will you talk a little bit about the marketing side?

當然。我可以高級別回答，然後 Dan 可以權衡更多細節。但我的意思是，我認為在高層次上，思考它的方式是，我們真正將業務重點放在個性化和造型上。是的，Fix 是其中非常重要的一部分。從營銷的角度來看，更集中的信息傳遞有助於我們提高營銷效率，更集中地關注客戶是誰。我認為收購方面臨的挑戰之一是，試圖為客戶獲得自由風格，我們肯定會偏離我們的歷史客戶，並試圖 - 試圖獲得許多不同的信息，並且實際上有一個分類那。因此，在庫存方面進行簡化也可以提高效率。為了能夠幫助我們的客戶填滿他們的衣櫃，能夠在修理之間進行，自由泳肯定仍然可以發揮作用。因此，我們肯定會繼續考慮如何通過自由式為客戶體驗增加價值。但我想說的是，投資更多的是圍繞更全面地思考，什麼是 Fix——什麼是 Stitch Fix 生態系統，以及如何將所有這些部分整合在一起，以便為我們的客戶帶來最佳的 LTV 和體驗，但當然也為我們的股東帶來了成果。所以，也許我會——丹，你能談談營銷方面嗎？

Yes. On the marketing side, again, Katrina mentioned, we are not marketing a freestyle first experience, which we had done in the past. And that along with a lot of the product, the client experience improvements we have made. It just has allowed us to focus on that fixed first client in a very efficient way. And so well, the advertising drop year-over-year seems large. When you look at the clients that we are bringing in, we are seeing very efficient spend. And that was the point, when we talked about men's actually being up on a gross adds basis, and women's and kids improving, while still down year-over-year improving from current trends. That's with that 46% reduction in marketing, in advertising. So, we do anticipate to stay on this trend of lower advertising spend, but focusing on the right client, the fixed first client. And then having freestyle be a very important incremental opportunity, once the client is in the door and engaged in the Fix business. It still is a material part of our business and will continue to be freestyle, that is.

是的。在營銷方面，卡特里娜再次提到，我們不是在營銷我們過去做過的自由式首次體驗。除了許多產品，我們還改進了客戶體驗。它只是讓我們能夠以一種非常有效的方式專注於那個固定的第一個客戶。好吧，廣告同比下降似乎很大。當您查看我們帶來的客戶時，我們會看到非常有效的支出。這就是重點，當我們談到男性實際上在總增加的基礎上有所上升，女性和兒童有所改善，但與當前趨勢相比仍同比下降。這是因為營銷和廣告減少了 46%。因此，我們確實預計會保持這種較低廣告支出的趨勢，但會專注於合適的客戶，即固定的第一客戶。然後讓自由泳成為一個非常重要的增量機會，一旦客戶上門並從事修復業務。它仍然是我們業務的重要組成部分，並且將繼續是自由式的。

Our next question comes from Dana Telsey with Telsey Advisory Group. You may proceed.

我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。你可以繼續。

Hi, good afternoon everyone. Kat, welcome back for the interim period. As you think about the near-term and the long-term, on the near-term, how are you thinking about the core customer, what they are spending on pricing, how you are thinking of brands? And how do you think about the differentiation between the freestyle and the fix in terms of whether it's AUR or captivating the customer? And then on the long-term, obviously new processes, it sounds like are being put in place right now. What do you see is the most incremental driver to return to growth under the hood in terms of operations or logistics or processes? Thank you.

嗨，大家下午好。 Kat，歡迎在過渡期間回來。當你考慮近期和長期時，在短期內，你如何看待核心客戶，他們在定價上的花費，你如何看待品牌？您如何看待自由泳和固定泳在是 AUR 還是吸引客戶方面的區別？然後從長遠來看，顯然是新流程，聽起來好像現在正在實施。您認為在運營、物流或流程方面恢復增長的最大增量驅動力是什麼？謝謝。

Thanks Dana. Let's see. So, on the first part, as we think about like, kind of what are we seeing on the customer side, we actually are seeing – we are seeing AOVs hold pretty strong. We are seeing AURs hold pretty strong. And I think in terms of what the customer is looking for, I think that's really differentiated about our channel relative to others, it's not necessarily price. It's not necessarily, kind of finding the brand that you love. It is actually around fit. It's about fit. It's about style. It's about finding things that you love. And in some cases, find things that you love that are surprising to you. And that's something that really only our channel can deliver on. And that's kind of how we are thinking about who the core customer is. And the good news is, I think there is a lot of that core customer. There is some data that we had that, like that men, most men and even half of women would characterize themselves as you know, not loving to shop. And there is not a lot of other retailers that are focusing on that customer.

謝謝達娜。讓我們來看看。因此，在第一部分，正如我們所考慮的那樣，我們在客戶方面看到的是什麼，我們實際上看到了——我們看到 AOV 非常強勁。我們看到 AUR 非常強勁。而且我認為就客戶正在尋找的東西而言，我認為我們的渠道相對於其他渠道確實有所不同，不一定是價格。這不一定，有點像找到你喜歡的品牌。它實際上是合適的。這是關於合適的。這是關於風格。這是關於找到你喜歡的東西。在某些情況下，找到令您驚訝的您喜愛的事物。這真的只有我們的頻道才能提供。這就是我們思考核心客戶是誰的方式。好消息是，我認為有很多核心客戶。我們有一些數據，比如男人，大多數男人甚至一半的女人都會將自己描述為不喜歡購物。並且沒有很多其他零售商專注於該客戶。

And Stitch Fix is one that really makes shopping more tenable and makes it easier. It helps people to look their best without spending a lot of effort to do it. And those are really differentiating qualities in our customer that we can build the right assortment to be able to deliver on. In terms of what's most influential under the hood, I mean that's a good question. But I mean really for me, I think the broad umbrella that really is focused. And it really is around focusing those marketing messages, focusing that conversion funnels, focusing on the inventory side. I think just really being able to focus on the things that we already know that we are able to deliver on that we have a business that's 10-plus-years-old, that has a history of profitability delivering on this business to be able to focus back on the things that we know and know that we can deliver is kind of the core thesis.

而 Stitch Fix 是一款真正讓購物變得更可靠、更輕鬆的產品。它可以幫助人們在不花費大量精力的情況下展現最佳狀態。這些確實是我們客戶的差異化品質，我們可以構建合適的產品組合來交付。就幕後最有影響力的問題而言，我的意思是這是一個很好的問題。但我的意思是對我來說，我認為真正集中的廣泛保護傘。它真的是圍繞著關注那些營銷信息，關注轉化渠道，關注庫存方面。我認為真正能夠專注於我們已經知道我們能夠實現的事情，我們擁有一個 10 多年曆史的業務，具有盈利能力的歷史，能夠實現這一業務重新關注我們知道和知道我們可以提供的東西是核心論點。

And I would say, there is rather than having one big thing. It's probably a lot of little things like the ones that I mentioned around marketing and inventory. And I shouldn't call them little things are really meaningful. And I think you could see that in the marketing numbers that we shared. But I feel optimistic by kind of what we have been able to see as we dig into the business and excited to be able to deliver more in the quarters to come.

而且我會說，有而不是有一件大事。這可能是很多小事情，比如我在營銷和庫存方面提到的那些。而且我不應該稱它們為真正有意義的小事。我想你可以在我們分享的營銷數據中看到這一點。但我對我們在深入研究業務時所看到的情況感到樂觀，並很高興能夠在未來幾個季度交付更多產品。

Our next question comes from Mark Mahaney with Evercore ISI. You may proceed.

我們的下一個問題來自 Evercore ISI 的 Mark Mahaney。你可以繼續。

Katrina, you talked about marketing diversification into newer channels that have yet to scale. Can you provide more color on what those newer channels could be? And then secondly, I was wondering if I could just get to the comment on sort of macro trends. And I realized there is a lot of other factors going on here. You have got year-over-year revenue declines pretty consistent in Q1, Q2, Q3, and Q4. So, my sense is that maybe overall macro trends are soft, but kind of consistently soft. They are kind of lagging along at the bottom. But can you just comment on whether you think macro trends in the consumer macro – consumer demand trends, are the margins further softening, stabilizing or possibly recovering? And I know there is a lot of other factors going on, but I am wondering if you would just address that question. Thank you.

卡特里娜颶風，你談到了營銷多元化，進入尚未擴大規模的新渠道。你能提供更多關於這些新頻道的顏色嗎？其次，我想知道我是否可以就某種宏觀趨勢發表評論。我意識到這裡還有很多其他因素。第一季度、第二季度、第三季度和第四季度的收入同比下降非常一致。所以，我的感覺是，也許整體宏觀趨勢是疲軟的，但有點持續疲軟。他們有點落後於底部。但您能否評論一下您是否認為消費宏觀的宏觀趨勢——消費者需求趨勢，利潤率是否進一步走軟、穩定或可能恢復？我知道還有很多其他因素在發生，但我想知道你是否願意解決這個問題。謝謝。

So, first on marketing diversification, I think it's probably some of the obvious. But we have done some experimenting with TikTok that I think had some promise. We have done some experimenting in YouTube and trying to think about how does YouTube get into kind of our overall conversion funnel. And then actually returned to our organic is definitely a big place to. I think we have seen being able to use influencers, both I think well-known influencers, but also more of what you would call, like micro influencers be effective. And that's definitely been a part of the history of Stitch Fix is, some of the very early years of growth of Stitch Fix were driven by that, by that kind of at the time was more bloggers, but more of those micro influencer categories.

因此，首先關於營銷多元化，我認為這可能是顯而易見的。但我們已經對 TikTok 進行了一些試驗，我認為這些試驗是有希望的。我們在 YouTube 上做了一些實驗，並試圖思考 YouTube 如何進入我們的整體轉化渠道。然後居然回到了我們有機絕對大的地方去。我認為我們已經看到能夠使用有影響力的人，我認為既有知名的有影響力的人，也有更多你所說的，比如微有影響力的人是有效的。這絕對是 Stitch Fix 歷史的一部分，Stitch Fix 早期的一些增長就是受此驅動的，當時有更多的博主，但更多的是那些微觀影響者類別。

And so that's another place that we are making sure we rebuild the muscle in. And in terms of macro, I mean I wish I had a crystal ball, and that I could tell you what's happening from – what's happening in our business, we see AUR and AOV actually be pretty stable. And so I think the places where we would expect to see macro headwinds would be probably around more conversion and customer acquisition. We have seen some successor as we shared in this last quarter. But I think that's the place that you could anticipate that we – that there could be some headwinds.

所以這是我們確保重建肌肉的另一個地方。在宏觀方面，我的意思是我希望我有一個水晶球，我可以告訴你發生了什麼——我們的業務正在發生什麼，我們看到 AUR 和 AOV 實際上非常穩定。因此，我認為我們預計會遇到宏觀逆風的地方可能是更多的轉化率和客戶獲取。正如我們在上個季度分享的那樣，我們已經看到了一些繼任者。但我認為這是你可以預料到的地方——可能會有一些不利因素。

And then I think – and the other place is probably around just longer term, like fixed frequency or purchase frequency. And I think Dan shared that we have seen some softer cohorts. And I think we do believe that some of that is macro. But as I have said, I do – I am not willing to accept that it's all macro, I do think that there are things that we can be doing better to be able to deliver on a better client experience that delivers more LTV. And so I don't know, Dan, if you have any quantification to add, but I wish I could give you a solid answer on what to expect.

然後我想——另一個地方可能只是長期的，比如固定頻率或購買頻率。我認為 Dan 分享了我們已經看到了一些更溫和的群體。而且我認為我們確實相信其中一些是宏觀的。但正如我所說，我願意——我不願意接受這一切都是宏觀的，我確實認為有些事情我們可以做得更好，以便能夠提供更好的客戶體驗，從而提供更多的 LTV。所以我不知道，丹，你是否有任何量化要補充，但我希望我能給你一個可靠的答案，告訴你會發生什麼。

I don't have anything to add. I completely agree with all of that. Specifically, on some of the macro, we talked about how we liked the trends we are seeing on gross adds, on the improvement, I think that's a positive. But we are still seeing some elevated in actives. And that's something that we are very focused on fixing with improvements in the client experience. And we do believe a lot of that of course, is macro related.

我沒有什麼要補充的。我完全同意所有這些。具體來說，在一些宏觀方面，我們談到了我們如何喜歡我們在總增加量和改進方面看到的趨勢，我認為這是積極的。但我們仍然看到一些活躍度有所提高。這是我們非常專注於通過改善客戶體驗來解決的問題。我們確實相信其中很多當然與宏觀相關。

Our next question comes from Aneesha Sherman with Bernstein. You may proceed.

我們的下一個問題來自 Aneesha Sherman 和 Bernstein。你可以繼續。

Yes. Thank you for taking my question. So, continuing on the theme of the macro and the consumer demand behavior trend. Last quarter, you talked about the consumer being more judicious with their spending and frequency declines? It sounds like you have seen that again. Is the mix shift or higher demand for own brands over national brands? Do you think that is part of it? Do you think that's – are you seeing the consumer sort of trade down a little bit to lower price points, rather than the national brands? And if so does that – how does that or does that change your national brand strategy that you have been talking about for the last few quarters on increasing your mix of national brands? And can you also talk about how that impacts gross margins, because I understand that your own brands are more profitable. Does that change your margin mix kind of looking into next year? Thanks.

是的。謝謝你提出我的問題。因此，繼續以宏觀和消費者需求行為趨勢為主題。上個季度，您談到消費者在支出和頻率下降方面更加明智？聽起來你又看到了。是自有品牌的組合轉變還是對民族品牌的更高需求？你認為這是其中的一部分嗎？你認為那是——你是否看到消費者為了降低價格而不是民族品牌而稍微降價？如果是這樣的話——那將如何改變您過去幾個季度一直在談論的關於增加國家品牌組合的國家品牌戰略？你能不能也談談這對毛利率的影響，因為我知道你自己的品牌更有利可圖。這會改變您對明年的利潤率組合嗎？謝謝。

I will answer the first part. And I know Dan is chomping at the bit to answer the gross margin part. But yes, I mean it's, I don't know if I would say that it's necessarily mix shift that's driven by macro. But I would say like, historically, it's very interesting in our channel. Historically, national brands do not perform very well in fixes. And I do think fixes are a place where the apparel is kind of the most stripped down version of itself. And people are really looking at those fixes to say, does – is this my style, does this fit me well, and brand is like a very tertiary, kind of consideration beyond those. And so historically, we have actually not seen national brands performed very well in fixes. And so a lot of the intention around bringing national brands into the portfolio recently has been to support a better freestyle experience. And so as we have and I think candidly, like those brands haven't performed as well, and the freestyle experience, although better than in the fixed experience. But I think longer term, the national brands will probably be a smaller part of our portfolio going forward is the way that they were historically respected. And I would actually really position that as a positive of being really a testament to our personalization. And at the end of the day, like even if it's not a brand that somebody recognizes, if you are delivering jeans that fit someone, someone is going to buy them. So Dan, can speak more about on the gross margins side.

我會回答第一部分。而且我知道丹迫不及待地回答毛利率部分。但是，是的，我的意思是，我不知道我是否會說這必然是宏觀驅動的混合轉變。但我想說，從歷史上看，它在我們的頻道中非常有趣。從歷史上看，民族品牌在修復方面表現不佳。而且我確實認為修復是服裝本身最精簡版本的地方。人們真的在看著這些修復說，這是否是我的風格，這是否適合我，品牌就像是一個非常第三的，超越那些的考慮。因此，從歷史上看，我們實際上並沒有看到民族品牌在修復方面表現出色。因此，最近將民族品牌納入產品組合的很多意圖都是為了支持更好的自由泳體驗。因此，正如我們所擁有的那樣，我坦率地認為，就像那些品牌表現不佳一樣，自由式體驗雖然比固定體驗要好。但我認為，從長遠來看，民族品牌可能會成為我們未來產品組合中的一小部分，這是它們歷來受到尊重的方式。實際上，我真的會將其定位為積極證明我們的個性化。在一天結束的時候，即使它不是一個有人認識的品牌，如果你提供適合某人的牛仔褲，就會有人購買。所以丹，可以在毛利率方面多談談。

Yes. Just to follow-on to your second point on that question, what Kat is saying this idea that we really focus more on our exclusive brands and be tighter with national brands having less of that, that level of course, we think it's the right client experience. And also what that does is, of course lead to higher margins simply because the private label and exclusive brands have higher product margins. When I mentioned earlier in the call that we see opportunity in gross margin, the first comment I made was in product margins. That is the big driver of product margins. So, as we get tighter with that, we do expect margins, it to positively impact margins. We do have some national brands that were so – inventory that we are still working through, although it's not a huge number. And we will get through that and we feel very good of the impact. Our focus will be on product margins. It will also have the impact of making inventory more efficient, which is a huge positive to cashflow. So, we feel good about that strategy and how it will impact financials.

是的。繼續你關於這個問題的第二點，Kat 所說的這個想法我們真的更專注於我們的獨家品牌並且更緊密地與擁有更少的國家品牌合作，當然，那個水平，我們認為它是合適的客戶經驗。而且這樣做當然會導致更高的利潤率，因為自有品牌和獨家品牌的產品利潤率更高。當我早些時候在電話會議中提到我們在毛利率方面看到了機會時，我發表的第一條評論是關於產品利潤率的。這是產品利潤率的主要驅動力。因此，隨著我們對此越來越嚴格，我們確實期望利潤率，它會對利潤率產生積極影響。我們確實有一些國家品牌如此 - 我們仍在處理庫存，儘管數量不是很大。我們將度過難關，我們對這種影響感到非常滿意。我們的重點將放在產品利潤率上。它還將產生提高庫存效率的影響，這對現金流來說是一個巨大的積極因素。因此，我們對該戰略及其將如何影響財務狀況感到滿意。

Our next question comes from Noah Zatzkin with KeyBanc Capital Markets. You may proceed.

我們的下一個問題來自 KeyBanc Capital Markets 的 Noah Zatzkin。你可以繼續。

It's kind of along the lines of the macro questions. And maybe I will ask it slightly differently. With Stitch Fix traditionally being full price business, how would you kind of frame or how do you kind of think about parsing out the impact of the broader promotional environment in apparel and what that had on Stitch Fix over the last couple of quarters? And with others in the space, talking about inventory beginning to be right sized, or at least having line of sight, to more right sized inventory positioned, how are you thinking about potential upside in the model? Should the promotional environment begin to normalize over the next couple quarters? Thanks.

這有點像宏觀問題。也許我會稍微不同地問它。由於 Stitch Fix 傳統上是全價業務，您將如何構建或如何考慮分析更廣泛的服裝促銷環境的影響以及過去幾個季度對 Stitch Fix 的影響？與該領域的其他人一起談論庫存開始大小合適，或者至少有視線，到更合適大小的庫存定位，您如何考慮模型的潛在優勢？促銷環境是否應該在接下來的幾個季度開始正常化？謝謝。

I mean Stitch Fix has been, I would say kind of oddly resilient to promotional periods. And I think we see some marginal impact, but not really as much as you would expect. And what we see is like, in the fixed experience, like first of all, I don't think people are coming to Stitch Fix in order to find a deal. That's not the primary intention. Of course, we need to do right price all the time. There is no question about that. But I would say that like people aren't coming to our channel in order to get a deal. And so what that means is people are actually coming to our channel, because they want clothes that fit them, because they want to refresh their wardrobe, because they want things that are their style. And so as a result, I would say that, we see like AOVs and AURs are kind of held pretty strong. And so I would say that we see maybe less of what you would expect, in terms of like the highly promotional environment right now. But I would say my hypothesis is that it probably impacts conversion more where that there are probably going to be fewer people that as they are looking at their budgets and as they are looking at where they are going to spend fewer dollars that they might have in a bank account that like refreshing a wardrobe might not be as high priority as it might have been 10 months ago. And so I would say our hypothesis is that our existing clients that are in this ecosystem are relatively stable, like I think they are probably the headwinds a little bit on the customer acquisition side that hopefully, if things led-up, and as we see things turn up the other way that will alleviate and make things easier for us. But I would say that it's a little bit of a unique proposition within Stitch Fix. That's not a perfect analogy to the promotional environment that you see outside of our ecosystem.

我的意思是 Stitch Fix 一直，我會說對促銷期有一種奇怪的彈性。而且我認為我們看到了一些邊際影響，但並沒有您預期的那麼大。我們看到的是，在固定體驗中，首先，我不認為人們來 Stitch Fix 是為了找到一筆交易。這不是主要意圖。當然，我們需要一直做正確的價格。毫無疑問。但我要說的是，就像人們來我們頻道不是為了達成交易一樣。所以這意味著人們實際上來到我們的頻道，因為他們想要合身的衣服，因為他們想要更新衣櫥，因為他們想要符合自己風格的東西。因此，我想說的是，我們看到 AOV 和 AUR 的表現相當強勁。所以我想說，就目前高度促銷的環境而言，我們看到的可能比你期望的要少。但我想說我的假設是，它可能會更多地影響轉換，因為他們正在查看預算的人可能會更少，因為他們正在查看他們將在哪些方面花費更少的錢一個喜歡翻新衣櫥的銀行賬戶可能不像 10 個月前那樣優先考慮。所以我想說我們的假設是，我們在這個生態系統中的現有客戶相對穩定，就像我認為他們可能在客戶獲取方面有點不利，希望如果事情有所進展，正如我們所看到的事情會以另一種方式出現，這將緩解並使我們的事情變得更容易。但我要說的是，這在 Stitch Fix 中有點獨特。這與您在我們的生態系統之外看到的促銷環境並不完美。

I will pick the second part of that question, which I believe was a question on inventory. And I hope I am answering – I hope I am interpreting that correctly. But from the standpoint of where we see inventory going forward, related to the macro, and what we are seeing in our focus on our exclusive brands is, we do expect our inventory to be more efficient. When you look at our, the way we record turns externally, we have been as high as Fix turns in the past. And while that was pre-freestyle, we do believe that we are going to see improved efficiency in the back half of this year simply because we have taken our inventory down as we ended Q2 and we do not expect significant changes for it to increase, it may ebb and flow a little bit quarter-to-quarter. But we feel very good about the inventory efficiency and we expect on a net inventory basis to be back about four in each two.

我將選擇該問題的第二部分，我認為這是關於庫存的問題。我希望我的回答是——我希望我的解釋是正確的。但從我們看到與宏觀相關的庫存未來發展的角度來看，以及我們在關注我們的獨家品牌時看到的是，我們確實希望我們的庫存更有效率。當您查看我們的外部記錄方式時，我們與過去的 Fix turn 一樣高。雖然這是自由泳之前的事，但我們確實相信今年下半年我們會看到效率的提高，這僅僅是因為我們在第二季度結束時減少了庫存，而且我們預計它不會發生重大變化，它可能會按季度起伏。但我們對庫存效率感覺非常好，我們預計在淨庫存的基礎上，每兩個都會恢復大約四個。

Thank you. And this concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。