Stitch Fix Inc (SFIX) 2023 Q4 法說會逐字稿

Good afternoon, and thank you for standing by. Welcome to the Fourth Quarter and Full Year Fiscal 2023 Stitch Fix Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.

下午好，感謝您的耐心等待。歡迎參加 2023 財年第四季和全年 Stitch Fix 財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the call over to Hayden Blair.

我現在想將電話轉交給海登·布萊爾。

Good afternoon, and thank you for joining us today for the Stitch Fix Fourth Quarter and Full Year 2023 Earnings Call. With me on the call are: Matt Baer, Chief Executive Officer; and David Aufderhaar, Chief Financial Officer. We have posted complete fourth quarter and full year 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，感謝您今天參加我們的 Stitch Fix 第四季和 2023 年全年財報電話會議。與我一起參加電話會議的有：執行長馬特貝爾 (Matt Baer)；和財務長戴維‧奧夫德哈爾 (David Aufderhaar)。我們已在我們網站 Investors.stitchfix.com 的「季度業績」部分發布新聞稿，發布了完整的 2023 年第四季度和全年財務業績。您也可以在我們的網站上找到今天電話會議網路廣播的連結。

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 quarterly report on Form 10-Q for our third quarter previously filed with the SEC, and the annual report on Form 10-K for our fiscal year 2023, which we expect to be filed later this week. 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中做出前瞻性陳述，其中涉及風險和不確定性。實際結果可能與我們前瞻性陳述中預期的結果有重大差異。報告的結果不應被視為未來績效的指標。請查看我們向 SEC 提交的文件，以討論可能導致結果不同的因素。特別是，我們今天發布並提交的新聞稿，以及先前向 SEC 提交的第三季 10-Q 表格季度報告中的風險因素部分，以及我們財年 10-K 表格中的年度報告2023 年，我們預計將於本週晚些時候提交。另請注意，本次電話會議的前瞻性陳述是基於截至今天為止我們所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

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.

在本次電話會議中，我們將討論某些非公認會計準則財務指標。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較的公認會計準則財務指標的調節表。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。最後，本次電話會議的全部內容將在我們的投資者關係網站上進行網路直播，並且很快將在網站上提供本次電話會議的重播。

And now, let me turn the call over to our CEO, Matt Baer.

現在，讓我將電話轉給我們的執行長 Matt Baer。

Thanks, Hayden, and good afternoon. I want to thank everyone at Stitch Fix for such a warm welcome and for your passion and commitment to helping our clients discover and express their style. I also want to thank Katrina and the Board of Directors for entrusting me to lead the company, and for sharing their perspective with me.

謝謝，海登，下午好。我要感謝 Stitch Fix 的每個人的熱烈歡迎，以及你們對幫助我們的客戶發現和表達他們的風格的熱情和承諾。我還要感謝卡崔娜颶風和董事會委託我領導公司，並與我分享他們的觀點。

I've spent the last 90 days getting to know our business and our brands, working closely with our executive leadership team to understand the issues and opportunities; and meeting our corporate, stylists, customer experience and warehouse teams to learn about how we serve clients today. I've also met with a number of clients, attended several client research sessions and read a lot of client feedback to help me understand our opportunities from their vantage point. Consistent personalized client service is at the core of what we do. So it was important to me to become grounded in what we're doing well, how we can do better and where we can do more. These first few months have reaffirmed my conviction about the bright future ahead for Stitch Fix. And at the same time, I fully appreciate the focus, time and resources required to realize our ambitions for the brand and the business.

在過去的 90 天裡，我一直在了解我們的業務和品牌，與我們的執行領導團隊密切合作，了解問題和機會；與我們的公司、造型師、客戶體驗和倉庫團隊會面，了解我們今天如何為客戶提供服務。我還會見了許多客戶，參加了幾次客戶研究會議並閱讀了大量客戶回饋，以幫助我從他們的角度了解我們的機會。一致的個人化客戶服務是我們工作的核心。因此，對我來說，紮根於我們做得好的事情、如何做得更好以及在哪些方面可以做得更多對我來說很重要。最初的幾個月再次堅定了我對 Stitch Fix 光明未來的信念。同時，我完全感謝為實現我們的品牌和業務抱負所需的專注、時間和資源。

Today, I'll say a few words about why I joined Stitch Fix, share my initial observations about where we are today and how that will inform our future strategy, then David will take you through our Q4 and FY '23 results. When I first became aware of Stitch Fix, I recognized right away that it was a unique business model. And as a digital leader, I was impressed. Stitch Fix presented a compelling, differentiated and innovative experience powered by advanced technology, offering personalization, convenience and service at scale. When the opportunity to join Stitch Fix presented itself, it appealed to me because I saw a powerful idea that hadn't yet realized its full potential. And I believed that my background, experience and drive could get that done.

今天，我將談談我加入Stitch Fix 的原因，分享我對我們今天所處位置的初步觀察，以及這將如何影響我們未來的戰略，然後David 將帶您了解我們的第四季度和23 財年業績。當我第一次意識到 Stitch Fix 時，我立即意識到這是一種獨特的商業模式。身為數位化領導者，我印象深刻。 Stitch Fix 呈現了由先進技術驅動的引人注目的、差異化的創新體驗，提供大規模的個人化、便利性和服務。當加入 Stitch Fix 的機會出現時，它吸引了我，因為我看到了一個強大的想法，但尚未充分發揮其潛力。我相信我的背景、經驗和動力可以實現這一目標。

I've always had a passion for retail and an appreciation for the importance of customer service. My first job was at my family's furniture business, which taught me the fundamentals of retail. I took those early lessons to a few retail startups where I learned the value of a compelling, curated assortment strategy and then ran digital businesses in some of the most complex and competitive marketplaces for the world's largest retailer, and the country's largest department store. What has excited me the most throughout my career is identifying opportunities to provide better experiences for our customers, the kinds of experiences that solve their problems, fulfill their desire for value and exceed their expectations.

我一直對零售充滿熱情，並且重視客戶服務的重要性。我的第一份工作是在家族的家具企業，這教會了我零售的基礎知識。我在一些零售新創公司中學到了這些早期的經驗教訓，在那裡我了解到了引人注目的、精心策劃的分類策略的價值，然後在一些最複雜和競爭最激烈的市場中為世界上最大的零售商和美國最大的百貨公司經營數位業務。在我的整個職業生涯中，最令我興奮的是尋找機會為我們的客戶提供更好的體驗，解決他們的問題，滿足他們對價值的渴望並超越他們的期望。

I've always been drawn to digital and tech forward businesses because I believe customers want and deserve a better way to shop. And with more options available than ever before, at a time when people feel more time constrained than ever before, I think customers need that better way to shop more than ever before. In most instances, shopping off-line is cumbersome and shopping online can be overwhelming. The brick-and-mortar apparel shopping experience is time-consuming, and at times, frustrating. And although the online experience has gotten better, it is still too focused on session-level conversion and lacks the inspiration and personalization that make great style, great fit and great value attainable.

我一直被數位和技術前沿的企業所吸引，因為我相信客戶想要並且應該有更好的購物方式。在人們感覺時間比以往任何時候都更加緊張的時候，有了比以往更多的選擇，我認為顧客比以往任何時候都更需要更好的購物方式。在大多數情況下，線下購物很麻煩，而網上購物可能會讓人不知所措。實體服裝購物體驗非常耗時，有時甚至令人沮喪。儘管線上體驗已經變得更好，但它仍然過於專注於會話級轉換，缺乏實現出色風格、完美合身和巨大價值的靈感和個性化。

Part of the magic of Stitch Fix is that we can deliver all of that in a way that is truly convenient, not only in terms of ease of shopping, but also in terms of anticipating our clients' needs. Of course, we believe the richness of our data also makes it possible for us to leverage our assortment to deliver fresh and compelling styles and drive better margins. Stitch Fix is a brand that really means something to people who rely on us to help them find their style and experience a better way to shop. We exist to make getting dressed easier, and our model has always combined the power of data science with the personalization of a human connection.

Stitch Fix 的神奇之處在於，我們能夠以一種真正方便的方式提供所有這些服務，不僅在購物的便利性方面，而且在預測客戶的需求方面。當然，我們相信豐富的數據也使我們能夠利用我們的品種來提供新鮮且引人注目的款式並提高利潤。 Stitch Fix 這個品牌對於那些依靠我們幫助他們找到自己的風格並體驗更好的購物方式的人來說確實意義重大。我們的存在是為了讓穿衣變得更容易，我們的模型始終將數據科學的力量與人際連結的個人化結合在一起。

As I've spent time with our stylists and customer service teams, I've heard them talk about the interactions they have with our clients. And it's clear that these connections are powerful. One of our stylists shared a message from a client that really speaks to the role Stitch Fix can play in our clients' lives. She wrote, "Brought to tears, by how special the Stitch Fix made me feel. I have 2 babies and started working as a teacher last week. I pour from my cup all day, and all I could think was that I deserve this?" To me, that note reinforces how important and integral this Stitch Fix stylist-client relationship is to who we are and what we represent.

當我與我們的造型師和客戶服務團隊相處時，我聽到他們談論他們與客戶的互動。很明顯，這些聯繫是強大的。我們的一位造型師分享了一位客戶的留言，該留言真正說明了 Stitch Fix 在客戶生活中可以發揮的作用。她寫道：「我熱淚盈眶，Stitch Fix 給我帶來了多麼特別的感覺。我有兩個孩子，上週開始擔任老師。我整天從杯子裡倒水，我只想到這是我應得的嗎？ ”對我來說，這句話強調了 Stitch Fix 設計師與客戶之間的關係對於我們是誰以及我們代表什麼是多麼重要和不可或缺。

I read another client note that reinforces the value of making shopping for clothes easier and more convenient. "Selection is tailored to my taste, and it is very easy to find new items that I like. Saves time from going to a store and searching through so much stock that isn't my style." Now those are just 2 of many examples of terrific client experiences. And of course, there are also examples of experiences where we missed the mark. And within both sets are key learnings that will guide us. As a long time student and operator in the retail space, I am both energized by the challenges and motivated by the opportunities I see for Stitch Fix. As I begin to shape our long-term vision and define our future corporate strategy, some of my early observations informed my thinking.

我讀到另一份顧客說明，強調了讓購買衣服變得更容易、更方便的價值。 “選擇是根據我的口味量身定制的，而且很容易找到我喜歡的新商品。節省了去商店搜索大量不符合我風格的庫存的時間。”這些只是出色客戶體驗的眾多例子中的兩個。當然，也有一些我們未能達到目標的經驗的例子。這兩套書中都有可以引導我們的重要經驗教訓。作為零售領域的長期學生和營運商，我既因挑戰而充滿活力，又因 Stitch Fix 所看到的機會而受到激勵。當我開始塑造我們的長期願景並定義我們未來的企業策略時，我的一些早期觀察啟發了我的想法。

First, personalization algorithms, artificial intelligence, machine learning and data science are fundamental elements of our model. It is clear that these capabilities are changing the way companies create and deepen relationships with customers. And while they have certainly become popular buzzwords among retailers who are investing heavily to catch up, they have been part of the DNA of Stitch Fix since its inception, and something we will build upon going forward.

首先，個人化演算法、人工智慧、機器學習和資料科學是我們模型的基本要素。顯然，這些功能正在改變公司建立和加深與客戶關係的方式。雖然它們無疑已成為那些大力投資追趕的零售商中的流行流行語，但自 Stitch Fix 成立以來，它們一直是其 DNA 的一部分，也是我們未來發展的基礎。

Second, the relationship between our clients and their stylists are amazing, unlike anything I've seen before. These connections are built on service and trust, they foster loyalty to the brand and represent long-term value to the business, and I believe these relationships are especially relevant as staffing levels in so many retail stores continue to decline. I expect us to deepen and enrich these relationships in the future.

其次，我們的客戶和他們的造型師之間的關係非常好，這與我以前見過的任何事情都不一樣。這些聯繫建立在服務和信任的基礎上，它們培養了對品牌的忠誠度並代表了企業的長期價值，我相信這些關係尤其重要，因為許多零售商店的人員配備水平持續下降。我希望我們未來能夠加深和豐富這些關係。

Third, I think the assortment and service we offer today creates a better experience because it solves for many of the frustrations we know people feel about both physical and digital shopping. Because of this, I believe we can and will introduce more people to the Stitch Fix way, and I believe we can drive market share gains.

第三，我認為我們今天提供的商品種類和服務創造了更好的體驗，因為它解決了人們在實體購物和數位購物中感受到的許多挫折感。正因為如此，我相信我們能夠並且將會向更多的人介紹 Stitch Fix 方式，我相信我們能夠推動市場份額的成長。

You'll hear much more from me about our long-term strategy in the near future. In the meantime, we are focused on enhancing the client experience to deliver personalization, strengthening profitability and investing carefully to drive growth.

在不久的將來，您會從我那裡聽到更多有關我們長期策略的資訊。同時，我們專注於增強客戶體驗以提供個人化、增強獲利能力並謹慎投資以推動成長。

Looking ahead, I am confident that being data-led, customer-centric and technology-driven will continue to be key contributors to ensuring that every client engagement, interaction and solution is personalized. Stitch Fix has already created a model based on a combination of data science and human connection. And as we continue to evolve the application of both AI and human touch, we plan to further advance this key point of differentiation. This will help us constantly look at things through the lens of our clients and think about the experience we provide to someone trying Stitch Fix for the first time or returning for the tenth.

展望未來，我相信以數據為主導、以客戶為中心和技術驅動將繼續成為確保每個客戶參與、互動和解決方案個人化的關鍵貢獻者。 Stitch Fix 已經創建了一個基於數據科學和人際關係相結合的模型。隨著我們不斷發展人工智慧和人性化的應用，我們計劃進一步推進這一差異化關鍵點。這將幫助我們不斷地從客戶的角度看待事物，並思考我們為第一次嘗試 Stitch Fix 或第十次返回的人提供的體驗。

Doing this, will ensure we are consistently investing in new capabilities to bring stylists and clients closer together, creating new ways of interacting with clients and continuing to advance our operational capabilities to be optimized for scale. The leadership team and I are aligned and focused on delivering long-term profitable growth.

這樣做將確保我們持續投資於新能力，使造型師和客戶更加緊密地聯繫在一起，創造與客戶互動的新方式，並繼續提高我們的營運能力以優化規模。我和領導團隊一致致力於長期獲利成長。

With that, I will turn the call over to David, who will take you through our Q4 and full year financial results as well as our future outlook.

接下來，我將把電話轉給 David，他將向您介紹我們第四季和全年的財務表現以及我們的未來展望。

Thanks, Matt. This is a pivotal time for Stitch Fix, and we're fortunate to have someone with Matt's retail, digital and operational expertise leading us into the future. He's asking a lot of great questions and has a fresh perspective that's challenging our thinking in a really positive way.

謝謝，馬特。對於 Stitch Fix 來說，這是一個關鍵時刻，我們很幸運能有一位擁有 Matt 零售、數位和營運專業知識的人帶領我們走向未來。他提出了很多很棒的問題，並擁有新鮮的視角，以非常積極的方式挑戰我們的思維。

Let me begin with setting some context around FY '23. We made the decision to focus on the core fix experience, which meant changing our inventory, product and marketing strategies. To allow time for those strategies to take hold, we focused on near-term profitability and cash flow. This meant restructuring our organization, consolidating our warehouse footprint and making the decision to exit the U.K. market. Decisions like this are never easy, but we believe these actions were the right ones. Throughout the course of the year, we improved our inventory position, realized over $150 million of annualized cost savings and achieved our goal of returning to positive adjusted EBITDA and free cash flow.

讓我先介紹一下 23 財年的背景。我們決定專注於核心修復體驗，這意味著改變我們的庫存、產品和行銷策略。為了讓這些策略有時間落實，我們將重點放在近期獲利能力和現金流。這意味著重組我們的組織、鞏固我們的倉庫足跡並做出退出英國市場的決定。這樣的決定絕非易事，但我們相信這些行動是正確的。在這一年中，我們改善了庫存狀況，實現了超過 1.5 億美元的年度成本節省，並實現了恢復正調整 EBITDA 和自由現金流的目標。

FY '23 net revenue was $1.64 billion, a decline of 21% year-over-year. We ended the year with approximately 3.3 million active clients, a decrease of 13% year-over-year. Despite the revenue decline, we believe we effectively unlocked the leverage potential for our business moving forward. We made great progress through cost savings and restructuring initiatives and ended the year with adjusted EBITDA of approximately $17 million, an improvement of more than $35 million versus the prior year. We also generated nearly $39 million of free cash flow.

23 財年淨收入為 16.4 億美元，年減 21%。截至年底，我們的活躍客戶數量約為 330 萬，年減 13%。儘管收入下降，但我們相信我們有效地釋放了業務向前發展的槓桿潛力。我們透過成本節約和重組措施取得了巨大進展，年底調整後 EBITDA 約為 1,700 萬美元，比前一年增加了 3,500 萬美元以上。我們還產生了近 3900 萬美元的自由現金流。

For Q4, our performance was better than we expected and reflects the work we have done to improve gross margin and right-size our cost structure. We also made progress on a number of key initiatives in the quarter. After a careful review of our operations in the U.K., we made the decision to wind down that business. We notified the affected employees in August, and we expect the full closure of our U.K. operations to be completed this calendar year. Additionally, the plan to consolidate from 5 U.S. warehouse locations to 3 is on track to be completed this fiscal year. We believe the consolidation will have immediate cost savings and having inventory in fewer warehouses will make it easier for stylists to build more relevant assortments for clients, and we will realize inventory efficiencies as we scale. We continue to expect the combined annualized cost savings related to the closure of the U.K. operation and the U.S. warehouse consolidation to be approximately $50 million.

第四季度，我們的業績優於我們的預期，反映了我們為提高毛利率和調整成本結構所做的工作。本季我們也在一些關鍵措施上取得了進展。在仔細審查我們在英國的業務後，我們決定結束這項業務。我們在 8 月通知了受影響的員工，預計我們的英國業務將於今年全面關閉。此外，將美國 5 個倉庫地點合併到 3 個的計畫預計在本財政年度完成。我們相信，整合將立即節省成本，並且在更少的倉庫中擁有庫存將使造型師更容易為客戶打造更多相關的品種，並且隨著規模的擴大，我們將實現庫存效率。我們仍預計，關閉英國業務和美國倉庫整合相關的年化成本節省總計約為 5,000 萬美元。

Q4 net revenue was $376 million, down 22% year-over-year, but above the high end of our prior guidance due to higher order volume. Revenue per active client declined 9% year-over-year in Q4 to $497 million. Q4 gross margin expanded 330 basis points year-over-year to 43.3%, thanks to the really hard work our merchandising teams did to improve the composition of our inventory over the last year. We ended Q4 with net inventory down 30% year-over-year and down 10% quarter-over-quarter to $137 million as we continue our efforts to align our inventory position with demand and increase the assortment composition of our successful private brands.

第四季淨收入為 3.76 億美元，年減 22%，但由於訂單量增加，高於我們先前指引的上限。第四季每個活躍客戶的營收年減 9% 至 4.97 億美元。第四季毛利率年增 330 個基點，達到 43.3%，這要歸功於我們的銷售團隊去年為改善庫存組成所做的努力。截至第四季度，我們的淨庫存年減 30%，環比下降 10%，至 1.37 億美元，因為我們繼續努力使庫存狀況與需求保持一致，並增加我們成功的自有品牌的品種組成。

Advertising was 7% of net revenue in Q4, down slightly over Q3 and down more than 350 basis points year-over-year as we right-sized our marketing spend based on specific payback methodologies. Q4 adjusted EBITDA was $10.4 million, above our range due to better-than-expected revenues and the gross margin and operating leverage I mentioned earlier. We generated $18 million of free cash flow in Q4 and ended the quarter with $258 million in cash, cash equivalents and investments and no bank debt.

第四季廣告佔淨收入的 7%，比第三季略有下降，年減超過 350 個基點，因為我們根據特定的投資回收方法調整了行銷支出規模。第四季調整後 EBITDA 為 1,040 萬美元，高於我們的範圍，因為收入以及我之前提到的毛利率和營運槓桿比預期好。我們在第四季產生了 1,800 萬美元的自由現金流，季末現金、現金等價物和投資為 2.58 億美元，沒有銀行債務。

Turning to our outlook. We remain focused on improving the client experience, retaining and attracting clients, maximizing the effectiveness of our marketing, increasing leverage in our cost structure and driving positive free cash flow. Before we get into the numbers, there are 2 key callouts in our guidance. First, I want to remind everyone that FY '24 is a 53-week fiscal year. We will also be providing this guidance in the context of U.S.-only operations as we anticipate reporting our U.K. results as discontinued operations beginning in Q1. Our guidance provided in the press release details the reconciliation between FY '23 and FY '24 for both of these items.

轉向我們的展望。我們仍然專注於改善客戶體驗、留住和吸引客戶、最大限度地提高行銷效率、增加成本結構槓桿並推動積極的自由現金流。在我們討論這些數字之前，我們的指南中有兩個關鍵標註。首先，我想提醒大家，24 財年是為期 53 週的財政年度。我們還將在僅限美國的業務中提供此指導，因為我們預計從第一季開始將我們的英國業績報告為已終止的業務。我們在新聞稿中提供的指導詳細介紹了 23 財年和 24 財年這兩個項目之間的調節情況。

For the full year, we expect total U.S. revenue to be between $1.3 billion and $1.37 billion. We expect total U.S. adjusted EBITDA to be between $5 million and $30 million, primarily reflecting an improved gross margin and ongoing cost savings initiatives. This guidance also assumes we will be free cash flow positive for the full year, though we may see some variability between quarters due to the timing of working capital requirements related to our inventory purchases.

我們預計美國全年總收入將在 13 億美元至 13.7 億美元之間。我們預計美國調整後 EBITDA 總額將在 500 萬至 3,000 萬美元之間，主要反映了毛利率的提高和持續的成本節約舉措。該指引還假設我們全年的自由現金流將為正，儘管由於與我們的庫存採購相關的營運資金需求的時間安排，我們可能會看到季度之間存在一些變化。

Moving on to Q1. We expect total U.S. revenue to be between $355 million and $365 million, and we expect Q1 U.S. adjusted EBITDA will be between $2 million and $7 million. We also expect revenues from the U.K., which we anticipate will be reported as discontinued operations in Q1 to contribute approximately an additional $7 million in Q1. We expect both Q1 and full year gross margin to be approximately 43% to 44% as we continue to drive improvement in our inventory position with a higher mix of private brands and continued efficiencies in transportation costs. We also expect advertising to be approximately 7% to 8% of revenue, but we'll continue to be opportunistic if we see the right return on our investment.

繼續第一季。我們預計美國總營收將在 3.55 億美元至 3.65 億美元之間，我們預計第一季美國調整後 EBITDA 將在 200 萬美元至 700 萬美元之間。我們還預計來自英國的收入將在第一季額外貢獻約 700 萬美元，我們預計該收入將在第一季報告為終止業務。我們預計第一季和全年的毛利率約為 43% 至 44%，因為我們將繼續透過更多的自有品牌組合和持續的運輸成本效率來推動庫存狀況的改善。我們也預期廣告收入將佔收入的 7% 至 8% 左右，但如果我們看到合適的投資回報，我們將繼續抓住機會。

We do expect inventory balances to rise in Q1 due to the timing of receipts ahead of Fall-Winter, but expect our inventory turns to improve as the year progresses. We began FY '24 with an eye to rebuilding, leveraging the cost savings work already accomplished in FY '23. Our unit economics remain strong, and we will continue to identify opportunities to improve both fixed and variable costs in order to increase our contribution margin and fixed leverage potential. We expect this continued focus on leverage and profitability, along with the acquisition and engagement of high lifetime value clients will help us maintain profitability today and provide a solid foundation for our future growth strategy.

由於收貨時間在秋冬之前，我們確實預計第一季的庫存餘額將會增加，但預計我們的庫存週轉率會隨著年份的推移而改善。我們從 24 財年開始著眼於重建，利用 23 財年已經完成的成本節約工作。我們的單位經濟效益仍然強勁，我們將繼續尋找改善固定和變動成本的機會，以提高我們的邊際貢獻和固定槓桿潛力。我們預計，對槓桿率和獲利能力的持續關注，以及高生命週期價值客戶的收購和參與，將有助於我們保持當前的獲利能力，並為我們未來的成長策略奠定堅實的基礎。

Now, let me turn the call back to Matt.

現在，讓我把電話轉回給馬特。

Thanks, David. As I said at the top of the call, my first 90 days as CEO, have reaffirmed my conviction about the bright future of Stitch Fix. The insight and vision on which this company was founded are just as powerful and just as relevant today. We are evaluating and assessing every aspect of our brand, our business and our operating model. We are carefully examining what we do and how we do it, optimizing where we can right now while also looking ahead to the longer-term opportunities.

謝謝，大衛。正如我在電話會議開頭所說，我擔任執行長的頭 90 天再次堅定了我對 Stitch Fix 光明未來的信念。這家公司創立時所依據的洞察力和願景在今天同樣強大且具有現實意義。我們正在評估和評估我們的品牌、我們的業務和我們的營運模式的各個方面。我們正在仔細檢查我們的工作以及我們的工作方式，優化我們現在可以做的事情，同時也展望更長期的機會。

Stitch Fix was founded on the belief that the technology meets humanity model could create an individually tailored shopping experience that would make it easy and enjoyable for people defined their style and by clothing. The company's commitment and investment in that belief has never wavered. While we have a lot of hard work to do, our clients deserve the best from us, and I am confident in our ability to deliver that. I am determined to unlock every opportunity for us to realize the full potential of Stitch Fix and drive long-term profitable growth.

Stitch Fix 相信科技與人性模式的結合可以創造出個人化的購物體驗，讓人們透過服裝來定義自己的風格和服裝，從而輕鬆愉快地享受購物體驗。公司對這項信念的承諾和投資從未動搖過。雖然我們還有很多艱苦的工作要做，但我們的客戶值得我們提供最好的服務，我對我們實現這一目標的能力充滿信心。我決心釋放每一個機會，讓我們充分發揮 Stitch Fix 的潛力並推動長期獲利成長。

Thank you for your interest in our company. And now, operator, we'll take the first question.

感謝您對我們公司的關注。現在，接線員，我們將回答第一個問題。

Thank you. (Operator Instructions) Our first question comes from the line of Youssef Squali of Truist. Please go ahead, Youssef.

謝謝。 （操作員說明）我們的第一個問題來自 Truist 的 Youssef Squali。請繼續，優素福。

Can you hear me?

你聽得到我嗎？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Excellent. I have 2. So first, Matt, you talked a little bit about how you've been on the job now for 90 days, you've had a chance to talk to a lot of people internally, externally, et cetera. Maybe can you just summarize for us some of the key learnings that you had during this period? What are kind of the 2 or 3 key challenges that are kind of top of mind for you based on those learnings?

出色的。我有 2 個。首先，馬特，你談了一些關於你在 90 天的工作中是如何工作的，你有機會與內部、外部的很多人交談，等等。或許您能為我們總結一下您在這段期間學到的一些重要知識？根據這些經驗，您最關心的 2 或 3 個關鍵挑戰是什麼？

And then, Dave, for the fiscal '24 guide, can you talk about the assumptions you're making in terms of active client count and maybe just how you see pricing kind of progressing throughout the year?

然後，戴夫，對於 24 財年指南，您能否談談您在活躍客戶數量方面所做的假設，以及您對全年定價進展的看法？

All right. Thank you, Youssef. Appreciate the questions. So yes, so 12 weeks in and definitely have spent a considerable amount of time onboarding, learning everything that I can, talking to all of our internal stakeholders as well as external advisors and also trying to get as close to our clients as we possibly can to truly understand the business from their standpoint as well.

好的。謝謝你，優素福。感謝您提出的問題。所以，是的，12 週以來，我確實花了相當多的時間入職，學習我能學到的一切，與我們所有的內部利益相關者以及外部顧問交談，並試圖盡可能接近我們的客戶也從他們的角度真正了解業務。

And in addition to what I shared in the earnings transcript preceding this, one of the things that I learned was just how strong of a bond our most loyal clients have with our service. And that, to me, is something that really creates a tremendous opportunity for us as we continue to drive growth in our business into the future. It is quite rare to have an e-commerce business or any retail business where you're able to get such high levels of engagement from your clients. In the last quarter, as we shared what is our business down 22% and our marketing spend down nearly 50%, it's pretty rare to be able to see those kind of proportions and that speaks to the testament of how we engage our clients in an organic manner and how they continue to come back to us time after time despite any challenges we might see in the macro environment.

除了我在先前的收益記錄中分享的內容之外，我學到的一件事是我們最忠實的客戶與我們的服務之間的連結有多麼牢固。對我來說，隨著我們繼續推動未來業務的成長，這確實為我們創造了巨大的機會。在電子商務企業或任何零售企業中，能夠獲得如此高水準的客戶參與度的情況是非常罕見的。在上個季度，我們分享了我們的業務下降了 22%，行銷支出下降了近 50%，能夠看到這樣的比例是非常罕見的，這證明了我們如何與客戶互動儘管我們在宏觀環境中可能遇到任何挑戰，但它們如何繼續一次又一次地回到我們身邊。

Another learning that I think is really important to us is the strength of our private brand business. One of the things that becomes really important for us as we go forward is to have an assortment that's not only exclusive, but has a strong desirability from our clients. And if we look at our total brand portfolio, of our top 25 brands, they deliver about 50% of our total revenue and over half of those brands are private brands. Those private brands are also delivering approximately 5% to 10% higher IMU than the national brands, and our clients absolutely love them with materially higher keep rates than our national brands.

我認為對我們來說真正重要的另一個教訓是我們自有品牌業務的實力。隨著我們的發展，對我們來說真正重要的事情之一是擁有不僅是獨家的，而且是我們的客戶強烈渴望的品種。如果我們看一下我們的總品牌組合，在我們排名前 25 名的品牌中，它們約占我們總收入的 50%，其中一半以上是自有品牌。這些自有品牌的 IMU 也比國內品牌高出約 5% 到 10%，我們的客戶絕對喜歡它們，因為它們的保留率比我們國內品牌高得多。

In terms of challenges, I really see those as opportunities going forward. As we continue to listen to our clients, we'll continue to see where we need to tweak our experience, improve our business model, where we need to find operational efficiencies to lock further savings to further improve our bottom line and profitability, going forward. And as I continue to onboard further, I look forward to pulling all of thar -- all of those learnings together and sharing our long-range plan and strategy at a future date.

就挑戰而言，我確實將其視為未來的機會。當我們繼續傾聽客戶的意見時，我們將繼續了解我們需要在哪些方面調整我們的體驗，改善我們的業務模式，我們需要在哪些方面提高營運效率以鎖定更多節省，從而進一步提高我們的利潤和盈利能力，繼續前進。隨著我繼續進一步加入，我期待將所有這些知識整合在一起，並在未來分享我們的長期計劃和策略。

And then Youssef, on the FY '24 guide, a couple of callouts. First, on active clients. We aren't sharing any specifics on full year active clients, but it definitely remains a primary focus for the team to drive towards growth. We do expect Q1 active clients to be negative. You saw for Q4 FY '23, we're down about 5% quarter-over-quarter, and we expect Q1 to be slightly better than that quarter-over-quarter.

然後是 Youssef，在 24 財年指南中，有一些標註。首先，針對活躍客戶。我們沒有透露有關全年活躍客戶的任何具體信息，但它絕對仍然是團隊推動成長的主要焦點。我們確實預計第一季的活躍客戶將為負數。您看到，23 財年第 4 季我們的季度環比下降了約 5%，我們預計第一季的環比情況將略好一些。

On the revenue side, a couple of callouts, the active client loss in FY '23 and the Q1 loss I just described are definitely a big contributor to the revenue headwind in FY '24. We also expect the headwind that we've recently seen in existing client order frequency to remain in FY '24, with clients still being cautious in the macro environment that we're in.

在收入方面，一些值得注意的事情，23 財年的活躍客戶損失和我剛才描述的第一季的損失絕對是 24 財年收入逆風的一個重要因素。我們也預計，我們最近在現有客戶訂單頻率方面看到的逆風將在 24 財年繼續存在，客戶對我們所處的宏觀環境仍持謹慎態度。

You touched on pricing. Pricing, we expect it to continue to remain stable with what we've seen in the past few quarters.

您談到了定價。定價方面，我們預計將繼續與過去幾季的情況保持穩定。

Please standby for our next question. Our next question comes from the line of Simeon Siegel of BMO Capital Markets.

請等待我們的下一個問題。我們的下一個問題來自 BMO 資本市場的 Simeon Siegel。

Welcome, Matt. So nice progress on the gross margins. Could you just maybe quantify the moving pieces a little bit more, just given there's nuance out there? And maybe how you're thinking about those moving pieces into the Q1 and full year guide you gave?

歡迎，馬特。毛利率取得了很好的進步。鑑於存在細微差別，您能否進一步量化移動部分？也許您如何考慮將這些內容納入您提供的第一季和全年指南中？

And then did you guys say what you are expecting the 53rd week to represent for revs and EBITDA?

然後你們有沒有說過你們對第 53 週的轉速和 EBITDA 有何預期？

Yes. Thanks, Simeon. Appreciate the question. It's Matt here. I'll speak to the gross margin at a high level. David can share some additional color as well as answer your question regarding the 53rd week. A lot of recognition to our merchants and many others within our organization for all the hard work that they've put in over the last year to ensure that we have a healthy inventory composition. It's a strong perspective of mind that more inventory is not better, but better inventory is better. And the merchant organization has truly taken that to heart and that's evidenced by what we just previously shared with inventory down 30% year-over-year. That also allows us to mix into higher-margin products.

是的。謝謝，西蒙。感謝這個問題。這是馬特。我將談論高水平的毛利率。 David 可以分享一些額外的顏色並回答您有關第 53 週的問題。我們對我們的商家和組織內的許多其他人在過去一年中為確保我們擁有健康的庫存組成而付出的辛勤工作表示高度認可。有一個強烈的觀點認為，庫存並不是越多越好，而是庫存越多越好。商業組織確實牢記了這一點，我們之前分享的庫存年減 30% 就證明了這一點。這也使我們能夠融入利潤率更高的產品。

As part of that, it's our reinforcement and our continued investment within our private brands. And as I just shared, the IMU there is about 5% to 10% higher overall. So, I believe that we still -- while we still have additional work that we can do in order to improve our overall inventory health, really encouraged by the early signs of success that we're having already.

作為其中的一部分，這是我們對自有品牌的強化和持續投資。正如我剛剛分享的那樣，IMU 總體高出約 5% 到 10%。因此，我相信，儘管我們仍然可以做額外的工作來改善我們的整體庫存健康狀況，但我們已經取得的早期成功跡象確實讓我們感到鼓舞。

And then, Simeon, on gross margin and just to give you a little bit more color around that. For FY '24, we are showing between a 100 basis point and 200 basis point improvement, and that really ties back to what Matt was describing that focus on improving our inventory health as well as sort of the transportation efficiencies that we continue to drive.

然後，西蒙，關於毛利率，只是為了讓你對此有更多的了解。對於 24 財年，我們顯示了 100 個基點到 200 個基點的改進，這確實與馬特所描述的重點聯繫在一起，即重點改善我們的庫存健康狀況以及我們繼續推動的運輸效率。

A couple of other callouts just as you go further down the P&L. There's also an annualized impact of the cost savings initiatives that we had in FY '23. And then there is also a good portion of the $50 million of annualized savings with the U.K. and the warehouse closures that we would realize in FY '24 as well. And then on the 53rd week, we do have specifics in the press release as well. So, you can see the impact there as well as the impact of the U.K., but it's about 1 point to 1.5 points.

當您進一步查看損益表時，還有一些其他標註。我們在 23 財政年度採取的成本節約措施也產生了年度影響。此外，英國每年節省的 5000 萬美元以及我們將在 24 財年實現的倉庫關閉也有很大一部分。然後在第 53 週，我們在新聞稿中也有具體細節。所以，你可以看到那裡的影響以及英國的影響，但大約是 1 到 1.5 個點。

Great. Best of luck with the year ahead.

偉大的。祝來年好運。

Thank you. Our next question comes from the line of Trevor Young of Barclays.

謝謝。我們的下一個問題來自巴克萊銀行的特雷弗楊（Trevor Young）。

Great. Just back to the full year guide for kind of core U.S. What are you baking in, in terms of underlying assumptions in terms of like the macro environment, impact from student loan repayments starting back up and continued competitive pressure given higher levels of discounting at peers are at retail? Just any color on kind of what your kind of broader macro outlook is?

偉大的。回到美國核心的全年指南，就宏觀環境等基本假設而言，學生貸款償還開始回升的影響以及鑑於同行貼現水平較高而持續的競爭壓力是零售的嗎？您對更廣泛的宏觀前景有什麼看法嗎？

And then just more of a housekeeping one. I appreciate the color on U.K. revs being able to back that out, but any directional commentary on what average revenue was for those customers so we can kind of contemplate that in our models as well?

然後更多的是一種家事服務。我很欣賞英國轉速的顏色能夠支持這一點，但是對這些客戶的平均收入有任何定向評論，以便我們也可以在我們的模型中考慮這一點嗎？

Trevor, I appreciate the questions. This is Matt. I'll speak at a high level to how we're thinking about the macro environment. and our competitive positioning around discounting. David can share additional perspective on that as well as try to answer your question around the U.K.

特雷弗，我很高興提出這些問題。這是馬特。我將在高層次上談論我們如何看待宏觀環境。以及我們在折扣方面的競爭定位。大衛可以分享對此的更多觀點，並嘗試回答您在英國各地的問題。

So in terms of the macro environment, I think that there's ample reason to take a cautious view of the U.S. consumer. They remain under pressure. Energy prices are rising. Interest rates are at the highest levels in recent years. Student loan payments resume next month, and there's a continued drawdown in consumer savings, and you already know all of that. And also all of those factors are outside of our control.

因此，就宏觀環境而言，我認為有充分的理由對美國消費者持謹慎態度。他們仍然面臨壓力。能源價格正在上漲。利率處於近年來的最高水平。學生貸款支付下個月恢復，消費者儲蓄持續減少，這些你都已經知道了。而且所有這些因素都超出了我們的控制範圍。

So for myself and the team, what we're focused on are the factors that are within our control. So do we have the right assortment, are we priced intelligently, are we acquiring high lifetime value potential clients? Is our brand resonating with the target market? And are we fostering deep, enduring relationships with our clients? And I think also with our service, we have that privilege of being delivered in the customers' homes when the macro environment is both a headwind and a tailwind. So during tough times, when discretionary spend is constrained or when a customer is reducing trips to the mall or resisting opening that addictive shopping app on their phone, we're still being delivered to our loyal clients homes, and our focus remains on that experience.

因此，對於我自己和團隊來說，我們關注的是我們控制範圍內的因素。那麼我們是否擁有合適的產品組合，我們的定價是否明智，我們是否獲得了高終身價值的潛在客戶？我們的品牌與目標市場產生共鳴嗎？我們是否與客戶建立了深厚、持久的關係？我認為，透過我們的服務，我們有幸在宏觀環境既逆風又順風的情況下將服務送到客戶家中。因此，在困難時期，當可自由支配的支出受到限制，或者當客戶減少去購物中心的次數或拒絕在手機上打開令人上癮的購物應用程式時，我們仍然會被送到我們忠實客戶的家裡，我們的重點仍然是這種體驗。

Our focus is on winning that wallet share upfront. And we also have that awesome advantage of owning a direct relationship with every single client. So, if a client's budget is stretched, they can share that with their stylists, and then we can adjust the assortment we send to ensure that we meet their current needs. So as I think about it is, no matter what the macro environment is, we remain focused on serving our clients, each of them individually.

我們的重點是預先贏得錢包份額。我們也擁有與每位客戶建立直接關係的巨大優勢。因此，如果客戶的預算緊張，他們可以與造型師分享，然後我們可以調整發送的品種，以確保滿足他們當前的需求。因此，我認為，無論宏觀環境如何，我們仍然專注於為每位客戶提供單獨的服務。

In terms of discounting, I think we also have a competitive advantage when it comes to discounting as we continue to mix more and more into our private brands, and we see great adoption of those brands with our clients. We don't have to worry about any price pressures in terms of price checking from consumers. And also, we have the luxury of already having that product into a customer's home, and as they're thinking about the assortment, whether they keep it or not, we have that aided advantage of [whether or] not actively price checking that assortment as well. And it gives us a unique advantage to be much more of a full-price retailer.

在折扣方面，我認為我們在折扣方面也具有競爭優勢，因為我們繼續將越來越多的產品融入我們的自有品牌，並且我們看到客戶對這些品牌的廣泛採用。我們不用擔心消費者查價方面的價格壓力。而且，我們已經擁有該產品進入客戶家中的奢侈，當他們考慮該品種時，無論他們是否保留它，我們都具有[無論是否]積極檢查該品種價格的輔助優勢以及。它為我們提供了獨特的優勢，讓我們成為全價零售商。

Now of course, at times, we don't meet the sell-through targets that we want to on the inventory that we've acquired. And we're also really investing in and getting smarter about our pricing intelligence to ensure that we have the right markdown cadence in order to drive the right sell-through and the right keep rates as our inventory ages, as well as continuing to test and learn and become better at using our freestyle channel in order to move inventory that isn't hitting our sell-through targets. So I do feel really good overall about our ability to compete in a tough macro environment as well as our ability to compete against retailers that might be more heavily discounting than we are.

當然，現在有時我們無法達到我們所希望的庫存銷售目標。我們也真正投資並更明智地利用我們的定價情報，以確保我們擁有正確的降價節奏，以便隨著我們的庫存老化，推動正確的銷售和正確的保留率，以及繼續測試和學習並更好地使用我們的自由式管道，以轉移未達到銷售目標的庫存。因此，我確實對我們在嚴峻的宏觀環境中競爭的能力以及我們與可能比我們打折幅度更大的零售商競爭的能力感到非常滿意。

And then, Trevor, on your specific question around the U.K., yes, there's definitely a reconciliation in the press release as well to give you the top line as well as gross profit and SG&A to help you sort of back those numbers out of the models.

然後，特雷弗，關於你在英國各地的具體問題，是的，新聞稿中肯定也會有一個調節，為你提供頂線以及毛利和銷售管理費用，以幫助你從模型中支持這些數字。

From an active client standpoint, the U.K. represented about approximately 180,000 clients. And so you can back into our pack with that to be able to back that out of the models.

從活躍客戶的角度來看，英國約有 18 萬名客戶。因此，您可以將其放回我們的包中，以便能夠將其從模型中取出。

Thank you. Please standby for our next question. Our next question comes from the line of Blake Anderson of Jefferies.

謝謝。請等待我們的下一個問題。我們的下一個問題來自傑富瑞 (Jefferies) 的布萊克安德森 (Blake Anderson)。

I had two. I wanted to first ask on, just if you could provide any more color on the trajectory of the year in terms of sales and margins? It seems like Q2 through Q4 EBITDA seems like it's around breakeven after Q1. So just wondering kind of the puts and takes on profitability for the back half of the year -- last 3 quarters versus the first quarter?

我有兩個。我想先問一下，您能否提供有關今年銷售額和利潤率軌蹟的更多資訊？看起來第二季到第四季的 EBITDA 似乎在第一季後就達到了盈虧平衡。那麼，只是想知道今年下半年的看跌期權和承兌期權的盈利能力——最後三個季度與第一季相比？

And then second question, I was just curious if you could talk at all about kind of your return rates, how many of your customers on the [fix] business are keeping boxes? How many items are they keeping? Wondering if you could share any color on how those KPIs are trending?

然後是第二個問題，我只是很好奇您是否能談談您的退貨率，您的[修復]業務中有多少客戶保留了盒子？他們保留了多少物品？想知道您是否可以分享這些 KPI 趨勢的任何顏色？

Yes, Blake, on the first part of your question, I think you're talking about EBITDA throughout the year. And the guide for Q1 was between $2 million and $7 million. And then the guide for the full year was between $5 million and $30 million. And so you can see from that, that we actually do expect to be profitable in the back half of the year as well. Because that's -- going back to what we've talked about in prior calls, like our focus on profitability has been something we have been really digging into, and we're certainly proud of the work that we've seen there. And so, we expect to be EBITDA positive for the year. We also expect to be free cash flow positive for the year as well.

是的，布萊克，關於你問題的第一部分，我認為你談論的是全年的 EBITDA。第一季的指導價在 200 萬至 700 萬美元之間。全年指導價在 500 萬至 3000 萬美元之間。所以你可以從中看到，我們實際上也預計在今年下半年獲利。因為那是——回到我們在之前的電話會議中討論過的內容，就像我們對盈利能力的關註一直是我們真正深入研究的事情，我們當然對我們在那裡看到的工作感到自豪。因此，我們預計今年的 EBITDA 將為正值。我們也預計今年的自由現金流也將為正值。

On the second question, I can jump in there and David, feel free as well. But in terms of the key metrics that we track from AUR, AOV and keep rate, overall, we're seeing relatively stable metrics across the board. And then going forward, we'll be working to put processes in place and strategy in place to improve those metrics over time.

關於第二個問題，我可以插話，大衛也請隨意。但就我們從 AUR、AOV 和保留率追蹤的關鍵指標而言，總體而言，我們看到了全面相對穩定的指標。然後，展望未來，我們將努力製定流程和製定策略，以隨著時間的推移改善這些指標。

Thank you. Our next question comes from the line of Tom Nikic of Wedbush Securities.

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

Matt, welcome aboard. I just want to ask, so obviously, you had a big revenue decline last year. You're calling for another double-digit revenue decline this year. So kind of -- in aggregate, it's a pretty significant decline versus where you were a couple of years ago.

馬特，歡迎加入。我只是想問，很明顯，去年你們的收入大幅下降。您呼籲今年的收入再次出現兩位數的下降。總的來說，與幾年前相比，這是一個相當顯著的下降。

Just kind of conceptually, sort of the idea that you're kind of resetting the revenue base to, I guess, kind of a sort of healthy, sustainable base and then you find opportunities to grow from there? And I guess when you do kind of think about like how to kind of inflect the top line from negative to hopefully positive again, like how is it? Is it inflecting customer growth? Is it share of wallet, like kind of how do we think about that?

只是從概念上講，你將收入基礎重置為一種健康、可持續的基礎，然後你從中找到成長的機會？我想當你確實考慮如何將頂線從負面轉為希望再次正面時，就像它怎麼樣？它會影響客戶成長嗎？這是錢包的份額嗎？就像我們如何看待這個問題？

Hey, Tom, I appreciate the question. It's, Matt. I'll answer that question and then David, if there's anything you'd like to add, please feel free. So in terms of where we see the business going forward and where our focus remains, we're working really hard to ensure that we have a healthy foundation for our business that we have a healthy inventory position for our business, that we have a healthy client franchise for our business and that we have a healthy financial and P&L ultimately for our business.

嘿，湯姆，我很欣賞這個問題。是，馬特。我會回答這個問題，然後大衛，如果您還有什麼要補充的，請隨意。因此，就我們對業務未來發展的看法以及我們的重點仍然而言，我們正在非常努力地確保我們的業務擁有健康的基礎，我們的業務擁有健康的庫存狀況，我們擁有健康的庫存狀況。我們的業務擁有客戶特許經營權，並且我們的業務最終擁有健康的財務和損益。

And we also have a strong perspective that as we continue to invest in and deliver experiences that resonate best with our clients and as we continue also to ensure that as we really judiciously rationalize our marketing spend, we're going to be able, over time, to both improve the experience and do a better job acquiring high lifetime value customers that will ultimately lead to future revenue growth, and we'll be able to do that on a profitable basis.

我們也堅信，隨著我們繼續投資並提供最能與客戶產生共鳴的體驗，並繼續確保我們真正明智地合理化我們的行銷支出，隨著時間的推移，我們將能夠，既改善體驗，又更好地獲取高終身價值客戶，最終帶來未來的收入成長，我們將能夠在獲利的基礎上做到這一點。

What I can also tell you confidently is that the service that we provide is a phenomenal one. The ability to get product delivered to your home that matches your style preferences, that aligns with your value orientation, that actually fits is a surprisingly rare experience, and it's one that we have an exceptional experience and we excel in competitively. And I believe that, that service resonates with an incredibly wide audience and untapped future markets, which, over time, will be able to expand our target market audiences and deliver growth. Right now, we're focused on the healthy foundations for our business. And in the future, we'll be focused on driving that long-term profitable growth

我也可以自信地告訴您，我們提供的服務是非凡的。能夠將符合您的風格偏好、符合您的價值取向、真正適合的產品送到您的家中，這是一種令人驚訝的罕見體驗，我們擁有非凡的經驗，並且我們在競爭中表現出色。我相信，這項服務會引起極其廣泛的受眾和尚未開發的未來市場的共鳴，隨著時間的推移，這些市場將能夠擴大我們的目標市場受眾並實現成長。目前，我們專注於為我們的業務奠定健康的基礎。未來，我們將專注於推動長期獲利成長

Thank you. Our next question comes from the line of Dylan Carden of William Blair.

謝謝。我們的下一個問題來自威廉布萊爾的迪倫卡登。

I'm just curious, maybe even follow up to that last answer. How are you thinking about the relationship now between marketing and sales? You're kind of keeping the ratio relatively stable next year. Is that driven by the sales outlook? Or is that driving the sales outlook? And kind of what's the strategy as it relates to retention and sort of new customer engagement?

我只是好奇，甚至可能會跟進最後一個答案。現在您如何看待行銷和銷售之間的關係？明年你會保持這比例相對穩定。這是由銷售前景驅動的嗎？或者這會推動銷售前景嗎？與保留和新客戶參與相關的策略是什麼？

Dylan, I appreciate the question. It's Matt. I'll answer your question, and then David, if you'd like to provide additional color, feel free. The way -- what we're focused on right now in marketing is exactly as you called out, that we need to ensure that when we go to market, we have a judicious marketing spend that rationalizes every dollar to ensure we're doing our best job to acquire high lifetime value customers into our portfolio.

迪倫，我很欣賞這個問題。是馬特。我會回答你的問題，然後大衛，如果你想提供額外的顏色，請隨意。我們現在在行銷方面關注的重點正是您所說的，我們需要確保當我們進入市場時，我們有明智的行銷支出，使每一美元合理化，以確保我們做我們的事情將高終身價值客戶納入我們的投資組合的最佳工作。

And I've been -- based on my experience, I've seen where at times, if you're just chasing client growth from a vanity metrics perspective, you can get yourself into some really difficult situations that become then ultimately very difficult to unwind. More important for me and the guidance to the team is that we need to focus on the health of our client franchise. So are we acquiring the right customers? Are we acquiring customers that display all of the signals that would indicate a high likelihood of high lifetime value? And how the marketing team is focused and what gives me a lot of encouragement is that there's a few different things that guide their work.

根據我的經驗，我有時會發現，如果你只是從虛榮指標的角度來追求客戶成長，你可能會讓自己陷入一些非常困難的境地，最終變得非常困難。放鬆。對我和團隊的指導來說，更重要的是我們需要專注於客戶特許經營的健康狀況。那我們是否獲得了合適的客戶？我們是否正在獲取那些顯示出高終身價值可能性高的所有訊號的客戶？行銷團隊的專注程度以及給我很大鼓勵的是，有一些不同的事情指導他們的工作。

The first is that they go to market with a really clear audience focus. They know who it is that they're speaking to and who it is that they're working to acquire. Two, they're doing a really good job of telling our story, what's the uniqueness of our brand, what's the uniqueness of our business model and what is that value proposition for a prospective client. Three, they're doing a good job balancing the budget between higher funnel brand and awareness campaigns and then lower funnel programmatic acquisition tactics.

首先，他們以非常明確的受眾焦點進入市場。他們知道他們正在與誰交談，也知道他們正在努力爭取誰。第二，他們在講述我們的故事方面做得非常好，我們品牌的獨特性是什麼，我們商業模式的獨特性是什麼以及對潛在客戶的價值主張是什麼。第三，他們在平衡較高漏斗品牌和認知度活動與較低漏斗程序化獲取策略之間的預算方面做得很好。

And to your point, we also have to be very mindful in terms of our retention and reactivation campaigns. And the marketing team is really dialed in here as well. And recently, we've had a lot of success in terms of reengagement. And then going forward, we look to continue those efforts, not just to continue to harvest reactivation but also to improve retention and fend off dormancy in the first place. So we feel confident that if we focus on these right things, we get the client experience right, we're really acquiring and engaging with high lifetime value customers, will create a better trajectory for our total client health over time.

就您而言，我們還必須非常注意我們的保留和重新激活活動。行銷團隊也確實在這裡撥了。最近，我們在重新參與方面取得了巨大成功。展望未來，我們希望繼續這些努力，不僅是繼續收穫重新激活，而且首先要提高保留率並避免休眠。因此，我們相信，如果我們專注於這些正確的事情，我們就能獲得正確的客戶體驗，我們真正獲得並與高終生價值客戶互動，隨著時間的推移，將為我們的整體客戶健康創造更好的軌跡。

So if I can sort of follow up on that. I mean, is this -- I don't know if you're going to answer this per se, but as you think about sort of the active customers you're left with now at the end of this year, and to your point about kind of unwinding past marketing spend or unwinding past growth, do you feel -- you kind of mentioned the stability of some of those key metrics. Do you feel like this 3-some million is a more engaged core group? Or are you still kind of weeding out some less efficient customer base in the model?

所以我是否可以跟進一下。我的意思是，我不知道你是否會回答這個問題，但是當你想到今年年底你剩下的活躍客戶時，就你的觀點而言關於放鬆過去的營銷支出或放鬆過去的增長，你有沒有覺得——你提到了其中一些關鍵指標的穩定性。您是否覺得這三百萬人是一個更積極參與的核心群體？或者您仍在在模型中淘汰一些效率較低的客戶群？

Yes. Dylan, I'll touch on that. I think to Matt's point, sort of this holistic approach to marketing touches on a couple of areas. First is in gross adds, and I think that was a lot of what I was describing as well. But I think what you're alluding to is on the dormancy side, we've talked about this in the past where we are still cycling through some of the Freestyle first clients that we've talked about in the past, although it's definitely less of an impact than it's been in the past. And we're also still seeing some of that elevated first fix dormancy that we've talked about in prior calls, but we're also seeing improvements in some of that first fix engagement as well. And so that, it's still a big area of focus for us.

是的。迪倫，我會談到這一點。我認為按照馬特的觀點，這種整體行銷方法涉及到幾個領域。首先是總增加，我認為這也是我所描述的很多內容。但我認為你所指的是休眠方面，我們過去已經討論過這個問題，我們仍然在循環使用我們過去討論過的一些 Freestyle 第一個客戶端，儘管它肯定較少比過去的影響更大。我們仍然看到我們在之前的電話會議中討論過的一些首次修復休眠狀態有所提高，但我們也看到一些首次修復參與度有所改善。因此，它仍然是我們關注的一個重要領域。

Thank you. Please stand by for our next question. Our next question comes from the line of Mark Altschwager of Baird. Please go ahead, Mark. Mark Altschwager your line is open.

謝謝。請等待我們的下一個問題。我們的下一個問題來自貝爾德 (Baird) 的馬克·阿爾特施瓦格 (Mark Altschwager)。請繼續，馬克。馬克·阿爾茨瓦格 (Mark Altschwager) 您的線路已開通。

Let me go to our next question. The next question comes from the line of Edward Yruma of Piper Sandler.

讓我談談下一個問題。下一個問題來自 Piper Sandler 的 Edward Yruma。

Matt, thanks for all the forthrightness. I guess just stepping back and maybe as a follow-up to the last question. When you look at churn, obviously, maybe introduce some customers that were lower value or just not as focused on the service. But if you kind of talk to your customer base and look at some of these longer-term customers that have churned or gone dormant, I guess what are the top 2 or 3 things that cause them to churn or go dormant? And how do you expect to address that long term?

馬特，謝謝你的直言不諱。我想只是退一步，也許作為最後一個問題的後續。當你考慮客戶流失時，顯然，可能會引入一些價值較低或不那麼專注於服務的客戶。但是，如果您與您的客戶群交談並查看其中一些已經流失或休眠的長期客戶，我猜導致他們流失或休眠的前 2 或 3 件事是什麼？您預計如何解決這個長期問題？

Ed, I appreciate the question, Matt here. I will provide an answer, and then David can follow up with additional context, if he'd like. So I've spent a lot of time as noted with our clients. I've been a participant in multiple client focus groups. I'll be participating in two more tomorrow. And one of the reasons or one of the things that really piqued my interest is both why they're excited about the service that we offer. And then also, to answer your question, for those that have decided to leave us, what were those drivers and what could we do in order to improve our service such that we mitigate the dormancy that we see from some of our clients.

艾德，我很欣賞這個問題，馬特在這裡。我將提供答案，然後大衛可以根據需要提供更多背景資訊。因此，正如我們的客戶所說，我花了很多時間。我曾參加過多個客戶焦點小組。明天我還要參加另外兩場。真正引起我興趣的原因之一或一件事是他們對我們提供的服務感到興奮。然後，為了回答你的問題，對於那些決定離開我們的人來說，這些司機是什麼，我們可以做些什麼來改善我們的服務，從而減輕我們從一些客戶那裡看到的休眠狀態。

And the top couple of reasons are probably no surprise and actually give me a lot of optimism in terms of the value of our service overall. Number one, it's just that there's a life-changing event that they've had that interrupts their need for our service. And it's something where it's without -- beyond our control, and something that is why we're also seeing, I think, a lot of success with the more recent reengagement campaigns that we have.

最主要的幾個原因可能並不令人意外，而且實際上讓我對我們整體服務的價值感到非常樂觀。第一，只是他們經歷了一件改變生活的事件，中斷了他們對我們服務的需求。這是我們無法控制的，也是我們最近的重新參與活動取得巨大成功的原因。

There's times in people's lives where our service is one that's of incredible value to them, and they might want to receive a fix every 30 days. And then something else changes in their life circumstance that then they might go for a while where the service is less valuable for them. But then, we have a really great opportunity to reengage them in the future when their life circumstance changes again.

在人們的生活中，有時我們的服務對他們來說具有難以置信的價值，他們可能希望每 30 天獲得一次修復。然後，他們的生活環境發生了其他變化，他們可能會在一段時間內接受服務對他們來說價值較低的地方。但是，當他們的生活環境再次改變時，我們有一個非常好的機會在未來重新吸引他們。

The second, and that I'm really proud of the work the team is doing is around continuing on -- the second is around what we're really doing to continue to improve the assortment quality and what we send to our customers. Overall, our customers give us really high marks in terms of the quality of our assortment and our keep rates and our success growing the business demonstrate that. Our merchants are definitely focused on making sure that our assortment is holistically focused on our core customer segments that we serve today. So the experience then is at its best when we have the assortment, breadth and depth to meet the needs of the entire closet for our customers, and that continues to be a focus for us.

第二個，我對團隊正在做的工作感到非常自豪，第二個是我們真正正在做的事情，以繼續提高品種品質以及我們向客戶發送的產品。總體而言，我們的客戶在我們的品種品質和保留率方面給了我們很高的評價，以及我們業務發展的成功證明了這一點。我們的商家絕對致力於確保我們的產品類別全面專注於我們今天所服務的核心客戶群。因此，當我們擁有足夠的品種、廣度和深度來滿足客戶整個衣櫃的需求時，體驗就會達到最佳狀態，而這仍然是我們關注的焦點。

Thank you. Our next question comes from the line of Kunal Madhukar of UBS. Please go ahead, Kunal. (Operator Instructions)

謝謝。我們的下一個問題來自瑞銀集團的 Kunal Madhukar。請繼續，庫納爾。 （操作員說明）

Our next question comes from the line of Mark Altschwager of Baird. Please go ahead. (Operator Instructions)

我們的下一個問題來自貝爾德 (Baird) 的馬克·阿爾特施瓦格 (Mark Altschwager)。請繼續。 （操作員說明）

We'll go to the next question. The next question comes from Kunal Madhukar of UBS.

我們將討論下一個問題。下一個問題來自瑞銀集團 (UBS) 的庫納爾馬杜卡 (Kunal Madhukar)。

A quick numbers one and then a follow-up. So on the numbers one, you mentioned that U.K. had about 180 active clients, 180,000. So when we -- when I take that out from the 1Q numbers, that implies that on a Q-over-Q basis, your -- that would be a negative 5.5% in 1Q, which is worse than the negative 5.1% in 4Q. -- which kind of tells me, and since you said that the expectation would be that in 1Q, there would be an improvement. That would suggest that at least as far as the U.S. is concerned, you expect to add active clients. Is that right?

快速排名第一，然後跟進。在第一點上，您提到英國大約有 180 個活躍客戶，即 180,000 名。因此，當我們從第一季的數據中取出這一數字時，這意味著，在季度環比的基礎上，第一季的成長率將是負5.5%，比第四季的負5.1% 更糟糕。 。 ——這告訴我，既然你說預期會在第一季有所改善。這表明至少就美國而言，您預計會增加活躍客戶。是對的嗎？

No, I don't think that's right, Kunal. We definitely expect -- another way to look at this is quarter-over-quarter, we definitely expect active clients from an absolute number to get better from a loss standpoint than what you saw in Q4.

不，我認為這是不對的，庫納爾。我們肯定預期——另一種看待這個問題的方式是季度環比，我們肯定預計活躍客戶的絕對數量從損失的角度來看會比第四季度看到的更好。

So in Q4, you lost 179,000 clients. Now if 180,000 clients are going to go out of the system in 1Q because U.K. would be a discontinued op?

因此，在第四季度，您失去了 179,000 名客戶。現在，如果因為英國將不再營運而導致 180,000 名客戶將在第一季退出系統呢？

Yes. And so, the down 3% that we were quoting included, it was a U.S.-only number.

是的。因此，我們引用的下降 3% 也包括在內，這只是美國的數字。

The down 3%. Okay.

下降3%。好的。

Yes. When I was talking about the quarter-over-quarter sequential decline in Q1 -- it was U.S.-only. It was a U.S.-only comp.

是的。當我談論第一季的環比下降時——這只是美國的情況。這是一個僅限美國的公司。

Okay. Okay. Okay. Okay. Great. And then -- and I think this has been asked before. So I apologize, it takes me a bit to kind of understand stuff. But the negative 15% to negative 20% revenue guide for the full year, how should we kind of think about it in terms of where you'll probably end up with active clients versus where you will end up with LTM revenue per active client?

好的。好的。好的。好的。偉大的。然後──我想這個問題以前就有人問過。所以我很抱歉，我需要一些時間才能理解這些事。但全年負 15% 到負 20% 的收入指導，我們應該如何考慮您最終可能獲得的活躍客戶以及每個活躍客戶的 LTM 收入？

Yes, Kunal, we -- I think, we touched on this earlier that we aren't giving specifics around active clients from a full year guide standpoint. And the guidance that we've given assumes pretty stable pricing throughout the year as well.

是的，庫納爾，我們——我想，我們早些時候談到過這一點，我們沒有從全年指南的角度提供有關活躍客戶的具體資訊。我們給出的指導也假設全年價格相當穩定。

The stable pricing. Okay.

物價穩定。好的。

Yeah.

是的。

Thank you. And as there are no further questions in queue, this does conclude today's conference call. Thank you for participating. You may now disconnect.

謝謝。由於沒有其他問題，今天的電話會議就到此結束。感謝您的參與。您現在可以斷開連線。