Signet Jewelers Ltd (SIG) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Signet Jewelers Fiscal 2023 Second Quarter Earnings Call. (Operator Instructions) Please note, this event is being recorded. I'd like to turn the conference over to Vinnie Sinisi, Senior Vice President, Investor Relations.

早上好，歡迎參加 Signet Jewelers 2023 財年第二季度財報電話會議。 （操作員說明）請注意，此事件正在記錄中。我想將會議轉交給投資者關係高級副總裁 Vinnie Sinisi。

Good morning, and welcome to our second quarter earnings conference call. On the call today are Signet's CEO, Jim Drosos; and Chief Financial and Strategy Officer, Joan Hilson.

早上好，歡迎參加我們的第二季度收益電話會議。今天的電話會議是 Signet 的首席執行官 Jim Drosos；和首席財務和戰略官瓊·希爾森。

During today's presentation, we'll make certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. We urge you to read the risk factors, cautionary language and other disclosure in our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Except as required by law, we undertake no obligation to revise or publicly update forward-looking statements in light of new information or future events.

在今天的演講中，我們將做出某些前瞻性陳述。任何非歷史事實的陳述都受到許多風險和不確定性的影響，實際結果可能存在重大差異。我們敦促您閱讀我們的 10-K 表格年度報告、10-Q 表格季度報告和 8-K 表格當前報告中的風險因素、警示性語言和其他披露。除法律要求外，我們不承擔根據新信息或未來事件修改或公開更新前瞻性陳述的義務。

During the call, we will discuss certain non-GAAP financial measures. For further discussion of the non-GAAP financial measures as well as reconciliations of the non-GAAP measures to the most directly comparable GAAP measures, investors should review the news release we posted on our website at www.signetjewelers.com/investors.

在電話會議期間，我們將討論某些非公認會計原則的財務措施。如需進一步討論非 GAAP 財務指標以及將非 GAAP 指標與最直接可比的 GAAP 指標進行核對，投資者應查看我們在網站 www.signetjewelers.com/investors 上發布的新聞稿。

And with that, I'll turn the call over to Gina.

有了這個，我會把電話轉給吉娜。

Thank you, Vinny, and thanks to all of you for joining us today. I want to begin by thanking our Signet team. Their passion for building lifetime relationships with our customers and fulfilling our purpose is central to everything we do.

謝謝你，Vinny，也感謝大家今天加入我們。首先，我要感謝我們的 Signet 團隊。他們對與我們的客戶建立終生關係和實現我們的目標的熱情是我們所做的一切的核心。

I continue to be inspired by their excellence and agility every day, no matter the conditions. It's an honor to work at their side. Here are the key takeaways from my remarks today. We believe that Signet's growth strategy and the structural advantages we've created in our operating model enable us to do 3 things consistently. First, deliver an annual double-digit operating margin; second, invest to achieve market share expansion; and third, create meaningful shareholder value.

無論條件如何，我每天都繼續受到他們卓越和敏捷的啟發。能在他們身邊工作是一種榮幸。以下是我今天講話的主要內容。我們相信，Signet 的增長戰略和我們在運營模式中創造的結構優勢使我們能夠始終如一地做三件事。一是實現年均兩位數的營業利潤率；二是投資實現市場份額擴大；第三，創造有意義的股東價值。

Q2 was yet another demonstration of these advantages. Our team delivered $1.8 billion in revenue and $193 million in non-GAAP operating income. Revenue was down 1.9% versus record-setting second quarter sales last year, and up 29% versus the second quarter of our fiscal year '20, which was the pre-pandemic base.

Q2 再次證明了這些優勢。我們的團隊實現了 18 億美元的收入和 1.93 億美元的非公認會計準則營業收入。與去年創紀錄的第二季度銷售額相比，收入下降了 1.9%，與大流行前基數的 20 財年第二季度相比增長了 29%。

Importantly, we delivered operating income within our original guidance range and non-GAAP operating margin was strong at 11%, which is nearly 3x higher than Signet's operating rate in fiscal year '20. So despite a softer top line environment, our structural transformation and the flexibility we now have in our operating model enabled us to leverage SG&A to deliver double-digit operating margin and maintain strategic investments and return capital to shareholders in Q2.

重要的是，我們在最初的指導範圍內實現了營業收入，非 GAAP 營業利潤率高達 11%，比 Signet 在 20 財年的營業率高出近 3 倍。因此，儘管頂線環境較為疲軟，但我們的結構轉型和我們現在在運營模式中擁有的靈活性使我們能夠利用 SG&A 實現兩位數的運營利潤率，並在第二季度維持戰略投資並向股東返還資本。

Our strategy is working. We are winning in our biggest businesses with our diversified portfolio of Banter, expanding accessible luxury, accelerating services and leading in digital. We are able to be strategically flexible, leaning further into the areas of our business with the most growth opportunities driving both customer and shareholder value.

我們的策略正在奏效。我們憑藉多元化的 Banter 產品組合、擴大無障礙奢侈品、加速服務和引領數字化，贏得了我們最大的業務。我們能夠在戰略上保持靈活性，進一步向我們的業務領域傾斜，這些領域具有最大的增長機會，可以推動客戶和股東價值。

Before I get into our results, let me first share some jewelry category context. What we're seeing in our proprietary data is that consumers shopping at lower price points, primarily buying discretionary fashion items or with lower incomes are being impacted most directly by macroeconomic pressures. We believe lower jewelry price tiers are also seeing the most negative impact from deep discounting in apparel and other fashion and discretionary categories. So in general, jewelry price points below $500, are seeing steep decline with price points below $1,000 also being negatively impacted.

在我進入我們的結果之前，讓我先分享一些珠寶類別的背景。我們在專有數據中看到的是，以較低價格購物的消費者，主要是購買可自由支配的時尚商品或收入較低的消費者正受到宏觀經濟壓力的最直接影響。我們認為，較低的珠寶價格等級也受到服裝和其他時尚和非必需品類別大幅折扣的最大負面影響。因此，總的來說，低於 500 美元的珠寶價格點正在急劇下降，低於 1,000 美元的價格點也會受到負面影響。

Conversely, higher price point items are showing more strength and this is reflected in the fastest jewelry growth being luxury price tiers, followed by accessible luxury.

相反，更高價位的項目表現出更大的實力，這反映在珠寶增長最快的是奢侈品價格層，其次是平價奢侈品。

What's particularly interesting is that our proprietary customer research for Kay, Jared and Zales is showing relative strength in what we call considered purchases. That is sentimental items over $1,000 like engagement rings, anniversary bands and other sentimental gifts are outperforming their categories. Our strategies around consumer insights, Banner differentiation and tearing up into accessible luxury are allowing us to lean into these trends.

特別有趣的是，我們對 Kay、Jared 和 Zales 的專有客戶研究在我們所謂的考慮購買方面顯示出相對優勢。也就是說，訂婚戒指、週年紀念樂隊和其他情感禮物等價值超過 1,000 美元的情感物品的表現優於其類別。我們圍繞消費者洞察、Banner 差異化和進軍可及奢侈品的策略使我們能夠順應這些趨勢。

So while Q2 was a mix of headwinds and tailwinds, we responded to these precisely as our company is now designed to do. We drove growth in bridal in our biggest Banners, especially in the $4,000 to $5,000 price range where revenue increased 11% versus last year, and all banners grew 15% in aggregate for purchases in the $10,000 plus price range. We grew services nearly 7%, which has a higher margin profile and drives traffic to our stores. We reduced core inventory, excluding Diamonds Direct, almost 2% versus last year with more efficient data-driven assortment and flexible fulfillment.

因此，雖然第二季度是逆風和順風的混合體，但我們對這些問題的反應正是我們公司現在的設計目標。我們推動了我們最大橫幅廣告的增長，尤其是在 4,000 美元到 5,000 美元的價格範圍內，收入比去年增長了 11%，所有橫幅廣告在 10,000 美元以上的價格範圍內的購買總額增長了 15%。我們的服務增長了近 7%，這具有更高的利潤率並推動了我們商店的客流量。通過更高效的數據驅動分類和靈活的履行，我們減少了不包括 Diamonds Direct 的核心庫存，與去年相比減少了近 2%。

This is enabling us to quickly respond to changes in consumer trends, maximize newness and limit clearance. With that context, let's take a closer look at how we're doing across our 4 growth strategies and why we believe we're building moats of competitive advantage that will lead to long-term profitable share growth. Winning in our biggest businesses is our first where-to-play strategy and bridal is a big part of the story this quarter. We estimate that our bridal share is now approximately 30%. This is a real advantage, driven by the high consumer awareness of our banners, our leadership marketing spend and personalized, always-on media approach.

這使我們能夠快速響應消費趨勢的變化，最大限度地提高新鮮度並限制通關。在這種情況下，讓我們仔細看看我們在 4 種增長戰略中的表現，以及為什麼我們認為我們正在建立競爭優勢的護城河，這將導致長期的盈利份額增長。在我們最大的業務中獲勝是我們的第一個遊戲策略，而新娘是本季度故事的重要組成部分。我們估計我們的新娘份額現在約為 30%。這是一個真正的優勢，這得益於我們橫幅的高消費者認知度、我們的領先營銷支出和個性化、始終在線的媒體方法。

Our connected commerce presence which is unrivaled in the jewelry category ensures that we are uniquely able to meet our customers' needs whenever, wherever and however they want to engage. Relevance plus readiness is a powerful combination, and it is precisely the combination we've built with our portfolio of highly differentiated banners, our optimized footprint of brick-and-mortar stores, and our expanding digital capabilities and experiences.

我們在珠寶類別中無與倫比的互聯商務存在確保我們能夠以獨特的方式隨時隨地滿足客戶的需求，以他們希望參與的方式。相關性和就緒性是一個強大的組合，這正是我們與高度差異化的橫幅產品組合、我們優化的實體店佈局以及我們不斷擴大的數字能力和體驗所建立的組合。

As predicted, 2022 has become the year of the wedding with 2.5 million weddings expected this year. In addition, with in-person events growing, we've seen an increase in pre-wedding and other wedding-related events, which are great opportunities for gifting. In fact, our data suggests that jewelry represents 43% of the gifts shared at wedding-related celebrations, including gifts for the bridal party, mothers and the couple themselves making this a $1.9 billion opportunity in the U.S.

正如預測的那樣，2022 年已成為婚禮之年，預計今年將舉行 250 萬場婚禮。此外，隨著面對面活動的增加，我們看到婚前和其他與婚禮相關的活動有所增加，這是送禮的絕佳機會。事實上，我們的數據表明，珠寶佔婚禮相關慶祝活動中分享的禮物的 43%，包括送給新娘派對、母親和夫婦自己的禮物，這在美國創造了 19 億美元的機會。

Because Signet delights so many couples with engagement ring purchases, we are now focused on making the most of all wedding opportunities.

因為 Signet 通過購買訂婚戒指讓許多夫婦感到高興，所以我們現在專注於充分利用所有婚禮機會。

We've made changes to our assortment, services and marketing and are creating new digital content, online shopping guides and targeted media campaigns, all to serve our customers throughout their special events and capture the entire value of the wedding. Our second where-to-play strategy is to expand the market we play in. And in this economic environment, we are both leaning into accessible luxury while also increasing our value equation for more economically challenged customers. To delight higher-income customers, we've added higher price point items to our assortments across banners.

我們已經對我們的分類、服務和營銷進行了更改，並正在創建新的數字內容、在線購物指南和有針對性的媒體活動，所有這些都是為了在他們的特殊活動中為我們的客戶提供服務，並捕捉婚禮的全部價值。我們的第二個戰略是擴大我們所涉足的市場。在這種經濟環境下，我們都傾向於購買可訪問的奢侈品，同時也為更多經濟困難的客戶增加我們的價值等式。為了取悅高收入客戶，我們在橫幅的分類中添加了更高價位的商品。

We've expanded concierge-level services like Jared Foundry, which offers customers the ability to design custom pieces from scratch with increased availability of personalized appointment bookings, particularly at Jared and Diamonds Direct. Diamonds Direct is proving to be the strong strategic acquisition we anticipated it would be, delivering $113 million in revenue this quarter, ahead of acquisition expectations. We believe we grew our share of accessible luxury in the quarter more than 2 points.

我們已經擴展了 Jared Foundry 等禮賓級服務，它使客戶能夠從頭開始設計定製件，並增加個性化預約的可用性，尤其是在 Jared 和 Diamonds Direct。 Diamonds Direct 被證明是我們預期的強有力的戰略收購，本季度實現了 1.13 億美元的收入，超出了收購預期。我們相信我們在本季度的無障礙奢侈品份額增長了 2 個百分點以上。

We are also navigating the impact of inflation and economic pressure on value shoppers. To maximize the value of their spend, we are leveraging our scale, our vertical integration capabilities and our strategic vendor relationships to value-engineer pieces that make jewelry more affordable for all our customers. A great example is how we are leveraging lab-created diamonds for a bigger look for less in our fashion pieces. We've also designed innovative new items using diamonds that are more plentiful and have a lower cost basis.

我們也在應對通貨膨脹和經濟壓力對超值購物者的影響。為了最大限度地提高他們的支出價值，我們正在利用我們的規模、我們的垂直整合能力和我們的戰略供應商關係來打造價值工程師作品，讓我們所有的客戶都能負擔得起珠寶。一個很好的例子是我們如何利用實驗室製造的鑽石在我們的時尚單品中以更少的成本獲得更大的外觀。我們還使用更豐富且成本更低的鑽石設計了創新的新物品。

Finally, we've strengthened our financing offerings, including expanding our 0% down payment promotional financing. Accelerating services is our third where-to-play strategy and is delivering strong revenue growth with first half sales up nearly 12% versus a year ago and Q2 up 7%. This performance was driven largely by growth in warranty attachment and repairs.

最後，我們加強了融資服務，包括擴大我們的 0% 首付促銷融資。加速服務是我們的第三個戰略，實現了強勁的收入增長，上半年銷售額同比增長近 12%，第二季度增長 7%。這一業績主要是由保修附件和維修的增長推動的。

Extended service agreements revenue was driven by a mix of our newer, more customer appealing bundles. Price increases and higher attachment rates. Repair growth reflects increasing NPS scores, driven by faster turnaround time, team training and new digital tracking visibility.

擴展服務協議收入是由我們更新的、更具客戶吸引力的捆綁組合推動的。價格上漲和更高的附加率。維修增長反映了 NPS 分數的提高，這得益於更快的周轉時間、團隊培訓和新的數字跟踪可見性。

Further, in the second quarter, we launched several new services based on our consumer research, these included appraisal services at Kay and a new insurance product at Jared, Kay and Zales to protect cherished jewelry from theft and loss. We also launched Bridal by Rocksbox, a new premium rental service for brides at all their wedding events, ranging from bridal showers to bachelorette parties, to their wedding day. We believe this service will help us continue attracting younger and more diverse customers as well as expand repeat purchases.

此外，在第二季度，我們根據我們的消費者研究推出了幾項新服務，其中包括 Kay 的評估服務和 Jared、Kay 和 Zales 的新保險產品，以保護珍貴的珠寶免遭盜竊和丟失。我們還推出了 Bridal by Rocksbox，這是一項新的高級租賃服務，適用於新娘的所有婚禮活動，從新娘送禮會到單身派對，再到婚禮當天。我們相信這項服務將幫助我們繼續吸引更年輕、更多樣化的客戶，並擴大重複購買。

The Rocksbox subscriber base increased 15% in Q2 and illustrating the power of Signet's scale for a newly acquired banner. We continue to be very bullish about the expansion of our Vault Rewards loyalty program, which is currently in Jared and select Kay's. It's on pace to be rolled out in e-commerce and to more than 1,800 Jared, Kay and Zales stores by this holiday. This continues to be a meaningful source of future growth with transaction values among loyalty members at Jared, for example, nearly $600 higher and repeat rates up 700 basis points versus non-loyalty members. We continue to see services as a $1 billion business and are steadily making progress toward that goal.

Rocksbox 的用戶群在第二季度增長了 15%，這說明了 Signet 對新收購的橫幅廣告的影響力。我們繼續非常看好我們的 Vault Rewards 忠誠度計劃的擴展，該計劃目前在 Jared 和 select Kay's 中進行。到這個假期，它將在電子商務中推廣到 1,800 多家 Jared、Kay 和 Zales 商店。這仍然是未來增長的重要來源，Jared 忠誠會員之間的交易價值比非忠誠會員高出近 600 美元，重複率提高了 700 個基點。我們繼續將服務視為一項價值 10 億美元的業務，並且正在朝著這一目標穩步前進。

Importantly, service margins remain consistent and accretive. Our fourth quarter to play strategy is leading in digital. Digital is our multiplier. It is the capability that creates the most advantage and is most difficult for competitors to match given the investments we've made.

重要的是，服務利潤率保持一致和增值。我們第四季度的戰略在數字方面處於領先地位。數字是我們的乘數。鑑於我們所做的投資，這種能力創造了最大的優勢，也是競爭對手最難以匹敵的。

It's a multiplier because it makes browsing, shopping and buying even easier and more fulfilling for our customers who are increasingly looking for an integrated multichannel experience and it leverages our data and scale in powerful and targeted ways to drive conversion.

它是一個倍增器，因為它使我們的客戶更容易和更充實地瀏覽、購物和購買，他們越來越尋求集成的多渠道體驗，並且它利用我們的數據和規模以強大和有針對性的方式來推動轉換。

Being the digital leader of jewelry means much more than leading in e-commerce. We are leveraging our digital capability and technology to innovate in every part of our business, now with industry-leading speed. For example, we've added several new and easy ways for customers to book appointments, which is driving higher levels of customer engagement.

成為珠寶的數字領導者不僅僅意味著在電子商務中處於領先地位。我們正在利用我們的數字能力和技術在我們業務的每個部分進行創新，現在以行業領先的速度進行。例如，我們為客戶添加了幾種新的、簡單的預約方式，從而提高了客戶參與度。

In the second quarter, 65% more appointments were booked online versus a year ago. This is important because the conversion rate of a merchandise appointment is 3x greater than for a walk-in customer. And the average transaction value is 30% higher, and we've also expanded virtual try-on for more of our key products, which increases conversion rates between 3 and sixfold.

與一年前相比，第二季度在線預約的人數增加了 65%。這一點很重要，因為預約商品的轉化率是預約顧客的 3 倍。平均交易價值高出 30%，我們還擴大了更多關鍵產品的虛擬試穿，這將轉化率提高了 3 到 6 倍。

We saw a 22% increase in checkout [start] rates this quarter versus last year after launching our new mobile first mini bag shopping companion. This makes it easy for customers to see at a glance views of their orders, applied discounts, total cost and progress toward earning loyalty incentives. In Q2, more than 20% of customers used 1 or more of our flexible fulfillment options, including ship to and from store, buy online, pick up in store or same-day delivery, all of which improved both customer convenience and inventory efficiency. These offerings also drive traffic to stores so that our expert jewelry consultants can further build relationships.

在推出我們新的移動首個迷你手袋購物伴侶後，本季度的結帳 [開始] 率與去年相比增加了 22%。這使客戶可以輕鬆一目了然地查看他們的訂單、應用的折扣、總成本和獲得忠誠度獎勵的進度。在第二季度，超過 20% 的客戶使用了我們的一種或多種靈活的履行選項，包括往返商店、在線購買、店內取貨或當日交付，所有這些都提高了客戶便利性和庫存效率。這些產品還為商店帶來流量，以便我們的專業珠寶顧問可以進一步建立關係。

We are increasingly linking our digital and physical experiences. We now have 28,000 e-tags tracking loose diamonds at the store level. This proprietary e-tag ecosystem was developed at Signet. E-tags are innovative and valuable technology for many reasons. First, because our e-TAGS enabled storytelling with a visible QR code, customers can easily access information about each diamond. Second, by leveraging a motion sensor and sales data, e-TAGS give us the ability to dynamically adjust pricing or offer incentives to close a sale within seconds. We can now optimize inventory levels and maximize sales and margin on a nearly real-time basis.

我們越來越多地將我們的數字體驗和物理體驗聯繫起來。我們現在有 28,000 個電子標籤在商店級別跟踪裸鑽。這個專有的電子標籤生態系統是在 Signet 開發的。出於多種原因，電子標籤是一種創新且有價值的技術。首先，由於我們的 e-TAGS 支持通過可見的 QR 碼講故事，因此客戶可以輕鬆訪問有關每顆鑽石的信息。其次，通過利用運動傳感器和銷售數據，e-TAGS 使我們能夠動態調整定價或提供激勵措施以在幾秒鐘內完成銷售。我們現在可以幾乎實時地優化庫存水平並最大限度地提高銷售額和利潤。

Nearly every loose diamond at Jared will soon have an e-TAG and we are continuing to expand the technology across other products and banners. With the digital innovation of our proprietary e-TAG system, we're essentially adding Internet of Things technology to our connected commerce capabilities in a way that no other jewelry company is doing. We invested in digital from the beginning of our past a Brilliance transformation, and we're not letting up. Our recent acquisition of Blue Nile is a good example.

Jared 幾乎每顆裸鑽都將很快擁有一個 e-TAG，我們將繼續將該技術擴展到其他產品和橫幅。通過我們專有的 e-TAG 系統的數字創新，我們實質上是在以其他珠寶公司沒有的方式將物聯網技術添加到我們的互聯商務功能中。我們從過去的 Brilliance 轉型之初就投資於數字化，而且我們不會鬆懈。我們最近收購 Blue Nile 就是一個很好的例子。

Blue Nile is the pioneer in online diamond marketplace shopping, bringing a new customer cohort to our portfolio, younger, more affluent and highly diverse. It has the highest brand recognition of any digital pure-play jewelry retailer and expands the top end of our accessible luxury offerings.

Blue Nile 是在線鑽石市場購物的先驅，為我們的產品組合帶來了更年輕、更富裕和高度多樣化的新客戶群。它擁有所有數字純珠寶零售商中最高的品牌知名度，並擴展了我們無障礙奢侈品產品的高端。

Blue Nile has unique shopping technology featured in their 23 showrooms through which customers are educated by a trained jewelry consultant and are then able to complete their purchase online. We can learn from this low inventory showroom model. We see incredible synergy opportunities with Blue Nile and James Allen, while strengthening and growing each of their unique banner value propositions, we now expect the Blue Nile acquisition to be accretive through both revenue and cost synergies, no later than Q4 of next year.

Blue Nile 在其 23 間陳列室中採用了獨特的購物技術，客戶通過這些技術接受訓練有素的珠寶顧問的培訓，然後能夠完成在線購買。我們可以從這種低庫存陳列室模式中學習。我們看到了與 Blue Nile 和 James Allen 的難以置信的協同機會，在加強和發展他們各自獨特的旗幟價值主張的同時，我們現在預計 Blue Nile 的收購將在不遲於明年第四季度通過收入和成本協同效應實現增值。

The final point I want to make is that a significant factor in our performance from quarter-to-quarter is the strength of our financial position. We've reset our operating model with significantly reduced fixed costs such as occupancy through our store fleet optimization and leaned into zero-based budgeting. Our operating model takes advantage of our scale. That's why we're confident in committing to annual double-digit operating margin with expansion over time. We've demonstrated that we have several levers we can pull to respond to changing market conditions, which is precisely what we did in Q2.

我想說的最後一點是，影響我們季度業績的一個重要因素是我們的財務狀況。我們已經重置了我們的運營模式，通過我們的商店車隊優化顯著降低了固定成本，例如入住率，並傾向於零基預算。我們的運營模式利用了我們的規模優勢。這就是為什麼我們有信心承諾隨著時間的推移實現年度兩位數的營業利潤率。我們已經證明，我們可以利用幾個槓桿來應對不斷變化的市場條件，這正是我們在第二季度所做的。

We're using our financial strength and flexibility to invest in the business in ways that create most of competitive advantage and that our customers see and are delighted by, whether that's through the value of our assortment, the breadth of virtual shopping journeys we enable, or through strategic acquisitions. We are focused on consistent long-term value creation and our stated capital allocation priorities.

我們正在利用我們的財務實力和靈活性，以創造最大競爭優勢並讓我們的客戶看到並感到高興的方式投資於業務，無論是通過我們的分類價值，我們支持的虛擬購物旅程的廣度，或通過戰略收購。我們專注於一致的長期價值創造和我們規定的資本配置優先事項。

First, investing strategically in our core business and acquisitions to expand market share. Second, maintaining appropriate levels of leverage; and third, returning cash to shareholders through repurchases and dividends with a goal of being a dividend growth company.

首先，戰略性地投資於我們的核心業務和收購以擴大市場份額。第二，保持適當的槓桿水平；第三，通過回購和分紅向股東返還現金，目標是成為股息增長公司。

So I'll close where I began. Signet's Q2 results are a strong reason to believe our core message. We have the strategic clarity, structural advantages, financial flexibility and winning culture to deliver consistent, reliable and sustainable growth and meaningful shareholder value. Signet is strong and growing stronger.

所以我會關閉我開始的地方。 Signet 的第二季度業績是相信我們的核心信息的有力理由。我們擁有清晰的戰略、結構優勢、財務靈活性和製勝文化，可以提供持續、可靠和可持續的增長以及有意義的股東價值。印章很強大，而且越來越強大。

On that note, I'll hand it over to Joan.

在那張紙條上，我會把它交給瓊。

Thanks, Gina, and good morning, everyone. I want to leave you with 3 messages today that all illustrate the sustainability of our operating model. First, we are confident we can deliver annual double-digit operating margin, while growing market share consistently and reliably. We believe we have the disciplined operating structure and innovative culture to do this year after year.

謝謝，吉娜，大家早上好。今天我想給你留下 3 條信息，它們都說明了我們運營模式的可持續性。首先，我們有信心能夠實現每年兩位數的營業利潤率，同時持續可靠地增加市場份額。我們相信我們有紀律嚴明的運營結構和創新文化可以年復一年地做。

Second, with the health of our balance sheet and working capital efficiencies, we believe we are well positioned to make strategic investments that drive long-term growth. And third, we continue to prioritize shareholder returns alongside continued investments.

其次，憑藉我們健康的資產負債表和營運資本效率，我們相信我們有能力進行戰略投資以推動長期增長。第三，我們繼續優先考慮股東回報以及持續投資。

Now turning to second quarter performance. Q2 is a perfect example of how we are effectively managing the top and bottom line. We delivered total sales of $1.8 billion down 1.9% compared to the record-setting sales performance we delivered in Q2 a year ago. The answer represented almost 1/3 of our comp decline during the quarter, offsetting a strong performance in bridal and accessible luxury. As Gina explained, we are taking full advantage of our strength in bridal and leaning into higher price points, while at the same time, moving banter out of underperforming malls and accelerating the growth of digital. As previously reported, we saw trends soften across all price points in July, along with weaker traffic. That said, for the quarter, our average transaction value in North America was up 10.8% on a comp basis.

現在轉向第二季度的表現。第二季度是我們如何有效管理頂線和底線的完美示例。與一年前第二季度創紀錄的銷售業績相比，我們實現了 18 億美元的總銷售額，下降了 1.9%。答案幾乎占我們本季度銷售額下降的 1/3，抵消了新娘和無障礙奢侈品的強勁表現。正如 Gina 解釋的那樣，我們正在充分利用我們在婚禮方面的優勢並傾向於更高的價格點，同時將玩笑從表現不佳的商場中剔除並加速數字化的增長。正如之前報導的那樣，我們看到 7 月份所有價格點的趨勢都趨於疲軟，而且客流量也有所減弱。也就是說，在本季度，我們在北美的平均交易價值在比較基礎上增長了 10.8%。

Sales per square foot was up over 40% compared to the second quarter of FY '20, a direct result of our connected commerce strategy, coupled with our fleet rationalization that reduced our store base by 20%. In addition, warranty and repair services were drivers in the quarter and delivered nearly 7% growth. Importantly, we began to see improvement in August as a result of non-comp activities. Now let's turn to gross margin. Non-GAAP gross margin was 38% of sales, down 190 basis points compared to the second quarter last year. This reflects deleverage of occupancy on a negative 8.2% comp and the impact of Diamond's Direct, which carries a lower relative margin.

與 20 財年第二季度相比，每平方英尺的銷售額增長了 40% 以上，這是我們互聯商務戰略的直接結果，再加上我們的車隊合理化使我們的門店數量減少了 20%。此外，保修和維修服務是本季度的驅動因素，實現了近 7% 的增長。重要的是，由於非補償活動，我們在 8 月開始看到改善。現在讓我們轉向毛利率。非美國通用會計準則毛利率為銷售額的 38%，與去年第二季度相比下降了 190 個基點。這反映了入住率下降 8.2% 以及 Diamond's Direct 的影響，後者的相對利潤率較低。

Importantly, our organic banners merchandise margin was similar to last year. Additionally, strategic technology investments and the absence of COVID-related tax abatements from prior year also impacted the change in gross margin. In spite of softer top line, we leveraged SG&A this quarter. SG&A was $477 million or 27% of sales, a 90 basis point improvement over last year.

重要的是，我們的有機橫幅商品利潤率與去年相似。此外，戰略技術投資和上一年沒有與 COVID 相關的稅收減免也影響了毛利率的變化。儘管頂線較軟，但我們本季度利用了 SG&A。 SG&A 為 4.77 億美元，佔銷售額的 27%，比去年提高了 90 個基點。

Our team managed SG&A in response to shifting market conditions, all while maintaining priority growth investments and returns to shareholders. This is driven by our disciplined spend management, our gating approach to investments, lower payroll costs, driven by our flexible labor model and benefits from our enhanced financial services agreements.

我們的團隊管理 SG&A 以應對不斷變化的市場條件，同時保持優先增長投資和股東回報。這是由我們嚴格的支出管理、我們的投資門控方法、更低的工資成本、我們靈活的勞動力模式以及我們增強的金融服務協議所推動的。

Non-GAAP operating income was $190 million or 11% of sales, which excludes acquisition-related charges of $6.4 million and compares to $223 million or 12.5% of sales last year. Please note that last year included $9 million of income, primarily from COVID-related brands. Notably, our Q2 operating margin performance is nearly 3x higher than FY '20. Looking back further, this also exceeds our performance 7 years ago when we had credit factored into our margin mix. This demonstrates the strength of our transformed operating model.

非美國通用會計準則營業收入為 1.9 億美元，佔銷售額的 11%，其中不包括與收購相關的 640 萬美元費用，而去年為 2.23 億美元，佔銷售額的 12.5%。請注意，去年包括 900 萬美元的收入，主要來自與 COVID 相關的品牌。值得注意的是，我們第二季度的營業利潤率表現比 20 財年高出近 3 倍。進一步回顧，這也超過了我們 7 年前將信用因素計入利潤率組合時的表現。這證明了我們轉型運營模式的實力。

Let's look now at the strength of our balance sheet. We have the flexibility to innovate and invest in even a softer top line environment because of our working capital efficiencies. We continue to deploy capital consistent with our stated priorities. At the end of the quarter, we had $852 million in cash from equivalents. Our focus on cash and working capital efficiencies have enabled us to achieve the following since FY '20.

現在讓我們看看我們的資產負債表的實力。由於我們的營運資金效率，我們可以靈活地創新和投資於更軟的頂線環境。我們將繼續按照我們聲明的優先事項部署資本。在本季度末，我們有 8.52 億美元的現金等價物。自 20 財年以來，我們對現金和營運資金效率的關注使我們能夠實現以下目標。

We returned cash to shareholders through $600 million of share repurchases and given our stock's current multiple, which we believe is undervalued, we will continue to use our remaining $622 million multiyear authorization. We paid $37 million in common dividends since reinstatement with a goal to become a dividend growth company.

我們通過 6 億美元的股票回購向股東返還了現金，鑑於我們認為我們認為被低估的股票當前倍數，我們將繼續使用我們剩餘的 6.22 億美元多年授權。自恢復以來，我們支付了 3700 萬美元的普通股息，目標是成為一家股息增長公司。

We've also invested nearly $900 million in strategic acquisitions, augmenting our accessible luxury tier within our differentiated portfolio. Further, our leverage ratio on a trailing 12-month basis currently stands at approximately 1.9x EBITDA, and well below our previously stated goal of below 3x and down nearly 50% from FY '20. And today, reflecting the strength and confidence in our operating model, we're revising our leverage ratio target to maintain below 2.75x EBITDA.

我們還投資了近 9 億美元進行戰略收購，在我們的差異化投資組合中擴大了我們的無障礙奢侈品級別。此外，我們過去 12 個月的槓桿率目前約為 1.9 倍 EBITDA，遠低於我們先前設定的低於 3 倍的目標，比 20 財年下降近 50%。今天，為了反映我們對運營模式的實力和信心，我們正在修改我們的槓桿率目標，以維持低於 2.75 倍 EBITDA。

Now I'd like to turn to inventory, which remains a critical differentiator for Signet. Inventory management is at the heart of our working capital efficiencies. Since fiscal year '20, we've made it a strategic imperative to reduce inventory overall, and we've done it even including Diamonds Direct. Overall, core inventory is down 13% in the quarter compared to the second quarter of FY '20 or $300 million and importantly, it's also nearly 2% down for last year, indicating our ability to change quickly in response to macroeconomic shifts.

現在我想談談庫存，這仍然是 Signet 的關鍵差異化因素。庫存管理是我們營運資金效率的核心。自 20 財年以來，我們已將減少整體庫存作為戰略要務，甚至包括 Diamonds Direct。總體而言，與 20 財年第二季度或 3 億美元相比，本季度核心庫存下降了 13%，重要的是，它也比去年下降了近 2%，這表明我們有能力快速改變以應對宏觀經濟變化。

Penetration of clearance inventory at the end of Q2 is down 1 point to last year and down 8 points compared to FY '20, reflecting the health of our inventory, and inventory turn of 1.5x at quarter end is turning 47% faster compared to pre-pandemic levels and is also improved to last year. We continue to use the appropriate levers to maintain a healthy level of inventory and are well prepared for holiday season. We partnered with our vendors to secure the right inventory to meet consumer demands and trends, While still maintaining the rigorous inventory management that drives much of our cash and cost discipline, we manage inventory holistically to grow market share and improve operating margin. This has become a reliable component of our annual double-digit operating margin commitment.

第二季度末清倉庫存滲透率比去年下降 1 個百分點，與 20 財年相比下降 8 個百分點，反映了我們庫存的健康狀況，季度末 1.5 倍的庫存周轉率比前一季度快 47% - 大流行水平，也改善到去年。我們繼續使用適當的槓桿來維持健康的庫存水平，並為假期做好充分準備。我們與供應商合作以確保合適的庫存來滿足消費者的需求和趨勢，在保持嚴格的庫存管理推動我們的大部分現金和成本紀律的同時，我們全面管理庫存以增加市場份額並提高營業利潤率。這已成為我們年度兩位數營業利潤率承諾的可靠組成部分。

Now let me move to guidance and then we're happy to take your questions. We are reaffirming our full year fiscal '23 annual revenue and operating income guidance. We now expect non-GAAP earnings per share for full year of fiscal 2023 in the range of $10.98 to $11.57, including the impact of share repurchases through the second quarter. Our full year fiscal '23 guidance does not include a material worsening of macroeconomic factors, and it does not include Blue Nile's performance. For the third quarter, we expect revenue in the range of $1.46 billion to $1.49 billion with non-GAAP operating income in the range of $20 million to $34 million.

現在讓我轉向指導，然後我們很樂意回答您的問題。我們重申我們的 23 財年全年收入和營業收入指導。我們現在預計 2023 財年全年非 GAAP 每股收益在 10.98 美元至 11.57 美元之間，包括第二季度股票回購的影響。我們的 23 財年全年指引不包括宏觀經濟因素的實質性惡化，也不包括 Blue Nile 的業績。對於第三季度，我們預計收入在 14.6 億美元至 14.9 億美元之間，非美國通用會計準則營業收入在 2000 萬美元至 3400 萬美元之間。

Please note that our strategic shift to an always-on marketing model has moved cost to the third quarter with associated revenue largely occurring in the fourth quarter. Before we open the call for Q&A, I want to acknowledge the capability and commitment that I see in our team day in and day out. Our team members operate with such commitment to our customers and accountability to our shareholders, and it is genuinely inspiring. What I love most about this team is that they are both high performance and high potential, delivering exceptional performance every single day and striving to be even better without fail.

請注意，我們向始終在線營銷模式的戰略轉變已將成本轉移到第三季度，相關收入主要發生在第四季度。在我們打開問答電話之前，我想承認我在我們團隊中日復一日地看到的能力和承諾。我們的團隊成員以對客戶的承諾和對股東的責任心運作，這確實令人鼓舞。我最喜歡這支球隊的一點是，他們既高績效又高潛力，每天都表現出色，並且努力做到更好而不失敗。

And on that note, we'll be happy to take your questions.

在這方面，我們很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

We take our first question from Ike Boruchow from Wells Fargo.

我們從富國銀行的 Ike Boruchow 那裡得到第一個問題。

Two quick ones. Just on the quarter-to-date, it sounds like August has gotten a little better. When we look at your Q2 performance versus the Q3 guide, it does look like you're embedding a decent slowdown in revenues organically both 1 year and on a multiyear basis. So just kind of walk us through the conservatism built in and what you commented on what you've seen in August, a lot of retailers have seen a little bit of a rebound?

兩個快的。就在本季度至今，聽起來八月已經好一些了。當我們查看您的第二季度業績與第三季度指南時，看起來您確實在 1 年和多年的基礎上有機地嵌入了收入的體面放緩。因此，請讓我們了解一下內在的保守主義以及您對 8 月份所見所見的評論，許多零售商已經看到了一點點反彈？

And then a quick follow-up is just on the Blue Nile transaction, Assuming this does close before holiday, I understand your guidance does not include any impacts from them. But if the deal does close ahead of holiday, would that be a positive or a negative to your EBIT that you're currently guiding to in the fourth quarter.

然後快速跟進 Blue Nile 交易，假設這確實在假期前結束，我理解您的指導不包括它們的任何影響。但是，如果交易確實在假期前完成，那麼這對您目前在第四季度指導的 EBIT 是積極的還是消極的。

Ike, thanks for your questions. I'll start with the first one. So when we guided a couple of weeks on the balance of the year at the time that we announced the transaction with Blue Nile. We really wanted to make sure we were reflecting the current reality of where we see the customer now. And so the low end of our guide was very clearly representing a continuation of the trends that we were seeing, not a material worsening, not including Blue Nile.

艾克，謝謝你的提問。我將從第一個開始。因此，當我們在宣布與 Blue Nile 的交易時，我們就年度餘額進行了幾週的指導。我們真的很想確保我們反映了我們現在看到客戶的當前現實。因此，我們指南的低端非常清楚地代表了我們所看到的趨勢的延續，而不是實質性惡化，不包括 Blue Nile。

We did see some improvement in August. I think that's really a combination of the customer. We have continued to see some strength, as I said in my remarks, at higher price points. and also for considered purchases, especially sentimental gifts and bridal, which we saw up 5% in the quarter. So I think there's some good news as we've come into August, but we didn't reflect any of that in the low end of the guide that we gave.

我們確實在 8 月份看到了一些改善。我認為這確實是客戶的組合。正如我在講話中所說，我們在更高的價格點上繼續看到一些力量。還有考慮購買，特別是感傷的禮物和新娘，我們在本季度看到了 5%。因此，我認為進入八月時有一些好消息，但我們沒有在我們提供的指南的低端反映任何這些。

And then, Joan, you want to talk a little bit about Blue Nile. We have already closed that transaction.

然後，瓊，你想談談青尼羅河。我們已經關閉了該交易。

Yes, we closed the transaction recently. Our team has been on the ground over the last week or so really pulling together and working hand-in-hand with the Blue Nile team to put together our holiday plans. And so it would be premature at this time to talk about our view of the fourth quarter, Ike. But that said, based on the work that we've done. We're very excited about the opportunities for synergy and the ability to integrate the 2 banners under the -- with the James Allen team. So and really leveraging the synergies of back office. So lots of opportunity in our view and just a little premature to really give guidance on the fourth quarter.

是的，我們最近完成了交易。過去一周左右，我們的團隊一直在實地工作，真正齊心協力，與 Blue Nile 團隊攜手合作，制定我們的假期計劃。所以現在談論我們對第四季度的看法還為時過早，艾克。但這就是說，基於我們所做的工作。我們對協同合作的機會以及將這兩個旗幟與詹姆斯艾倫團隊整合的能力感到非常興奮。所以並真正利用後台辦公室的協同作用。在我們看來，有很多機會，而真正給出第四季度的指導還為時過早。

The next question comes from Lorraine Hutchinson from Bank of America.

下一個問題來自美國銀行的 Lorraine Hutchinson。

Encouraging to hear about the August stabilization. But I guess I just wanted to see how you were stress testing the model. And maybe here your view if sales soften further, just talk through some of the levers that you can use to offset that deleverage to allow you to maintain that goal of double-digit operating margin?

令人鼓舞的是聽到關於八月穩定的消息。但我想我只是想看看你是如何對模型進行壓力測試的。如果銷售進一步疲軟，也許在這裡您的看法是，只需談談您可以用來抵消去槓桿化以使您保持兩位數營業利潤率的目標的一些槓桿嗎？

Thanks, Lorraine for the question. So our commitment and goal is to maintain an annual double-digit operating margin. And so what -- if you think about what we closed off in the second quarter, it was a negative 8.2% comp, and we delivered a very strong double-digit operating margin. So how did we do that was, one, strong inventory management, healthy inventories, clearance was below last year. And clearance sales were below last year.

謝謝，洛林的問題。因此，我們的承諾和目標是保持每年兩位數的營業利潤率。那又怎樣——如果你想想我們在第二季度的收盤情況，那是一個負的 8.2% 的比較，我們實現了非常強勁的兩位數營業利潤率。那麼我們是如何做到的，第一，強大的庫存管理，健康的庫存，清倉量低於去年。清倉銷售低於去年。

So again, healthy margins, as I mentioned, merchandise mix in our organic banners was similar to last year. So really able to leverage and build on the strong inventory disciplines that our teams are working on and have really put as part of our daily operating.

同樣，正如我提到的，健康的利潤率，我們有機橫幅中的商品組合與去年相似。所以真的能夠利用和建立我們團隊正在努力的強大的庫存紀律，並將其作為我們日常運營的一部分。

The other levers are labor, right? What we said is we have a very flexible labor model, we use data analytics to manage labor to traffic and ensure that our teams are -- We're putting coverage in the stores to support our customers at the right time and in the right locations and then our spend management, we gate our investments. And it is -- and it's really gated against our view of where we see the top line trending. We protect priority investments that are critical to long-term growth and really evaluate each based on our -- the ability to support our revenue in the short term with the eye to the long term, as I mentioned.

其他槓桿是勞動力，對吧？我們所說的是我們有一個非常靈活的勞動力模型，我們使用數據分析來管理勞動力流量並確保我們的團隊 - 我們在商店中進行覆蓋，以便在正確的時間和正確的地點為我們的客戶提供支持然後是我們的支出管理，我們控制我們的投資。它是 - 它真的與我們對頂線趨勢的看法相悖。正如我所提到的，我們保護對長期增長至關重要的優先投資，並根據我們在短期內支持我們的收入並著眼於長期的能力來真正評估每一項投資。

I would also say that as we're looking forward into the back half, we've applied all of these same disciplines, and we work very closely with our NPI teams and vendors on inventory to ensure that we have the right trends, but we have the flexibility to move receipts should that be needed. And then from the P&L perspective, are always on marketing, the shift that I mentioned, the range for the third quarter is just wanted to amplify that because it's a cost in the quarter that we continue to drive, and the revenue relates to the fourth quarter.

我還要說，當我們展望後半部分時，我們已經應用了所有這些相同的規則，並且我們與我們的 NPI 團隊和供應商在庫存方面密切合作，以確保我們擁有正確的趨勢，但我們如果需要，可以靈活地移動收據。然後從損益的角度來看，總是在營銷上，我提到的轉變，第三季度的範圍只是想放大這一點，因為這是我們繼續推動的季度成本，而收入與第四季度有關四分之一。

And then I would say in the third quarter, recall that as we are anniversarying investments in the prior year, we don't really get to that investment anniversary until the fourth quarter. So we are very closely watching our investments. And really, as we think of our guidance for the third quarter and then the implied guide for the back half, we have considered all of those factors.

然後我會在第三季度說，回想一下，由於我們正在為上一年的投資週年紀念，我們要到第四季度才能真正達到那個投資週年紀念日。因此，我們正在密切關注我們的投資。實際上，當我們考慮第三季度的指導以及後半部分的隱含指導時，我們已經考慮了所有這些因素。

The next question comes from Dana Telsey from the Telsey Advisory Group.

下一個問題來自 Telsey 諮詢小組的 Dana Telsey。

As you think about the gross margin and now the new buckets of the gross margin with new businesses entering like Diamonds Direct, how do you think about the shaping of it, whether on an annual basis, a quarterly basis and what the opportunity is for the levers of gross margin?

當您考慮毛利率以及現在隨著新業務（如 Diamonds Direct）的進入而產生的新毛利率時，您如何看待它的形成，無論是每年還是每季度，以及機會對於毛利率的槓桿？

Thanks, Dana. So gross margin, as I mentioned, our organic banners in the second quarter were similar to last year. As we move forward into the back half of the year, we have the same Diamond's direct mix, which carries a relatively lower margin because of the bridal mix, but also our inventories are healthy. And what that means is that our clearance marks are not as deep. And therefore, our yield on clearance selling is stronger. So that's a lever that we continue to pull and use clearance as a strategic lever for us for promotion, but able to carry a relatively higher margin given the health of the clearance inventory.

謝謝，達娜。所以毛利率，正如我提到的，我們第二季度的有機橫幅與去年相似。隨著我們進入今年下半年，我們擁有相同的 Diamond 直接組合，由於新娘組合，其利潤率相對較低，但我們的庫存也很健康。這意味著我們的清除標記沒有那麼深。因此，我們的清倉銷售收益更高。因此，這是我們繼續拉動並使用清倉作為我們促銷的戰略槓桿的槓桿，但鑑於清倉庫存的健康狀況，能夠帶來相對較高的利潤率。

Then vertical integration is another lever for us to continue to drive to optimize our costs and continue to drive expansion in gross margin over time. And then I would also add the value engineering that Gina mentioned in her remarks, as we work with our vendor base in this environment, we continue to value engineer to ensure that we're bringing beautiful product that's relevant on trend, a cost that enables us to have the right pricing and also bring value to the customer.

然後垂直整合是我們繼續推動優化成本並隨著時間的推移繼續推動毛利率擴張的另一個槓桿。然後我還要補充 Gina 在她的講話中提到的價值工程，當我們在這種環境下與我們的供應商合作時，我們繼續重視工程師，以確保我們帶來與趨勢相關的漂亮產品，成本能夠我們擁有正確的定價並為客戶帶來價值。

The next question comes from Oliver Chen from Cowen and Company.

下一個問題來自 Cowen and Company 的 Oliver Chen。

Regarding the lower price point products, what do you see for innovation there ahead? And what's necessary and timing on that? And how does that relate to traffic and merchandise margins and you're calling out promotions and also the reality of the bifurcation in the lower end to consumer?

關於低價產品，您認為未來的創新是什麼？那有什麼必要和時機？這與流量和商品利潤有什麼關係？您正在呼籲促銷活動以及低端消費者分叉的現實？

And Joan, as we think about inventory turns, you made a lot of progress there. Which parts of the product portfolio have the most opportunity to increase inventory turns.

瓊，當我們考慮庫存周轉時，你在這方面取得了很大進展。產品組合的哪些部分最有機會增加庫存周轉率。

Oliver, thanks for your questions. So we -- as we've really developed our consumer insight capability over the last several years, look at the category by price tiers, also by journeys. So from a price tier standpoint, as I mentioned in my remarks, luxury has been very strong. So that's a part of the category that continues to grow. That's generally above where Signet plays. But what we've been doing is tiering up all of our banners to have higher price point offerings. And we think we grew 2 points of market share in accessible luxury in the quarter. That's something we got behind very early. So, we've placed our holiday orders by Memorial Day.

奧利弗，謝謝你的問題。因此，由於我們在過去幾年中真正發展了我們的消費者洞察能力，因此按價格等級以及旅程來查看類別。因此，從價格層的角度來看，正如我在講話中提到的那樣，奢侈品一直非常強勁。所以這是繼續增長的類別的一部分。這通常高於 Signet 播放的位置。但我們一直在做的是將所有橫幅分層以提供更高價位的產品。我們認為我們在本季度的無障礙奢侈品市場份額增長了 2 個百分點。這是我們很早就落後的東西。所以，我們已經在陣亡將士紀念日之前下了假期訂單。

So we really have gotten ahead of that and everything Joan talked about on inventory includes the fact that we have tiered up to higher price points in our inventory this year. In terms of lower price customers, like you were talking about, they're really, I think, challenged by 2 factors, one is macroeconomic inflation, all of that. And so particularly in the self-purchase journey, we've seen a falloff there that would be primarily price points under $500.

所以我們真的走在了前面，瓊談到的所有關於庫存的事情都包括這樣一個事實，即我們今年的庫存已經達到了更高的價格點。就價格較低的客戶而言，就像您所說的那樣，我認為他們確實受到兩個因素的挑戰，一個是宏觀經濟通脹，所有這些。因此，特別是在自購過程中，我們已經看到價格下降，主要是價格低於 500 美元。

The other factor impacting that is the very heavy discounting that we're seeing because of high inventories in apparel and other discretionary categories. So that is impacting that customer right now. We would expect to see, as we go toward holiday, that the product that we've worked on for those customers, the value engineered product we think will be very appealing.

另一個影響這一點的因素是我們看到的非常大的折扣，因為服裝和其他非必需品類別的庫存很高。因此，這正在影響該客戶。隨著假期的臨近，我們希望看到我們為這些客戶開發的產品，我們認為價值工程的產品將非常有吸引力。

So we've been using lab-created diamonds, for example, as a way to get a big look for less for those customers. We have worked on our items at a price in a way to make sure that we are providing excellent value. We've been very conscious of how we've taken price increases especially at the low end, and we believe we've done that in a way that creates a superior value at Signet relative to the rest of the market.

因此，我們一直在使用實驗室製造的鑽石，例如，為這些客戶以更少的成本獲得大的外觀。我們以一定的價格處理我們的物品，以確保我們提供卓越的價值。我們一直非常清楚我們如何應對價格上漲，尤其是在低端價格上漲，我們相信我們這樣做的方式是在 Signet 相對於其他市場創造更高的價值。

We've worked with our vendors to use diamonds they had on hand. So had a lower cost basis, call it last year's inventory, and we've been able to use those to create product that can really appeal to that customer. Another area of innovation is diamond cut gold. So we've worked with many of our factories in Italy to come up with a laser cutting technique that actually creates the look of diamonds in a piece of gold even though there are no diamonds present. So it gives a really rich look for still a very affordable price point.

我們與供應商合作使用他們手頭的鑽石。所以有一個較低的成本基礎，稱之為去年的庫存，我們已經能夠使用這些來創造能夠真正吸引該客戶的產品。另一個創新領域是鑽石切割金。因此，我們與我們在意大利的許多工廠合作，提出了一種激光切割技術，即使沒有鑽石存在，它實際上也能在一塊黃金上創造出鑽石的外觀。因此，它以非常實惠的價格提供了非常豐富的外觀。

And then the last thing is we've leaned into the financing offers that we have for our value customers. Those are, of course, split pay. We saw a 35% increase on split pay use in e-commerce. So we're definitely seeing customers lean into that as an opportunity. Leasing we have available and then we've increased our 0% down promotional offerings for our private label credit card as an opportunity for those value challenge customers.

最後一件事是我們已經向我們的價值客戶提供了融資服務。當然，這些是分薪。我們看到電子商務中的分薪使用增加了 35%。因此，我們肯定會看到客戶將其視為一個機會。租賃我們可用的，然後我們增加了我們的自有品牌信用卡的 0% 折扣促銷產品，作為那些價值挑戰客戶的機會。

So we're really, I think, based on our consumer insights, we've been able to get our orders in early and to work early on the kind of innovation that is giving us more access to the part of the market that's growing, but also helping us be very competitive and offer great value at the lower end of the market.

所以我們真的，我認為，基於我們對消費者的洞察，我們已經能夠及早獲得我們的訂單，並儘早開展創新，讓我們更多地進入正在增長的市場部分，同時也幫助我們提高競爭力，並在低端市場提供巨大的價值。

And Oliver, to address your inventory turns, there's a couple of things that I would note here. One is that because of the health of our inventory and our consignment inventory position has been substantially lowered from several years ago. We've been able to work more flexibly with our vendors to test product, bring it in on memo and roll to the balance of our portfolio based on its acceptance by the customer.

奧利弗，為了解決您的庫存周轉問題，我要在這裡指出幾件事。一是由於我們的庫存狀況良好，我們的寄售庫存狀況已比幾年前大幅下降。我們已經能夠更靈活地與我們的供應商合作來測試產品，將其引入備忘錄並根據客戶的接受情況滾動到我們產品組合的平衡。

So that enhances our ability to have strong newness as well as improved churn. So I think that's something that we'll continue to drive with the merchandise teams and they're really -- that's something that we started last year in a smaller way and really -- it's really taking hold as we drive through this fiscal year.

因此，這增強了我們擁有強大的新鮮感以及改善客戶流失的能力。所以我認為這是我們將繼續與商品團隊一起推動的事情，他們真的 - 這是我們去年以較小的方式開始的事情，而且真的 - 在我們推動本財年時它確實佔據了主導地位。

And then the other is flexible fulfillment capabilities. Our team has done a really amazing job with our fulfillment team, our supply chain team and our merchandise planning teams to really integrate our flexible fulfillment capabilities into our purchasing as well as into the fulfillment of product from all of our locations, our stores and our DCs, which really has opened up are the selling aperture for us and able to really continue to drive inventory turn there. So that's underway, but still moving up the maturity curve to enhance inventories.

另一個是靈活的履行能力。我們的團隊與我們的履行團隊、我們的供應鏈團隊和我們的商品規劃團隊一起完成了一項非常了不起的工作，將我們靈活的履行能力真正整合到我們的採購以及我們所有地點、商店和我們的產品的履行中真正開放的 DC 是我們的銷售空間，並且能夠真正繼續推動那裡的庫存周轉。所以這正在進行中，但仍在向上移動成熟度曲線以增加庫存。

And then I think -- the third would just be this idea of turning inventory more towards just in time and working with our vendors with core inventory products. So we believe that we still have room to go but it will take time, and it will be -- it will take more precision across our operation.

然後我認為 - 第三個就是將庫存更多地轉向及時並與我們的供應商合作提供核心庫存產品的想法。因此，我們相信我們仍有空間，但這需要時間，而且會 - 在我們的運營中需要更高的精確度。

(Operator Instructions) We take our next question from Jim Sanderson from North Coast Research.

（操作員說明）我們從 North Coast Research 的 Jim Sanderson 那裡得到下一個問題。

Just wondering if you could walk us through the back half of the year, how -- what the puts and takes are between overhead expense and gross margin that gets you to a considerably lower dollar operating income in the current quarter and a nice pickup or acceleration in the fourth quarter. What are the building blocks between those cost centers that get you to the end of the year guidance based on what you're looking at for the third quarter?

只是想知道你是否可以帶領我們度過下半年，如何 - 間接費用和毛利率之間的看跌期權讓你在本季度獲得相當低的美元營業收入以及不錯的回升或加速在第四季度。根據您對第三季度的看法，這些成本中心之間的構建塊是什麼，可以讓您獲得年終指導？

Thanks for the question. So when we think about the back half, the third and fourth quarter splits, our guidance for the third quarter includes incremental investments that we will anniversary in the fourth quarter. So that's the operating income deterioration that you see in the third quarter, but it's largely due to these investments that we will anniversary in the future quarter.

謝謝你的問題。因此，當我們考慮後半部分，第三季度和第四季度的拆分時，我們對第三季度的指導包括我們將在第四季度週年紀念的增量投資。這就是您在第三季度看到的營業收入惡化，但這主要是由於這些投資我們將在未來一個季度進行週年紀念。

I'd also say that as we're looking at our always-on marketing strategy, this -- as I mentioned in my remarks, this seeds marketing costs in the third quarter that are incremental, but the revenue is not generated until the fourth quarter largely. So I think that's the split between the quarters that you're seeing, Jim.

我還要說，當我們正在研究我們始終在線的營銷策略時，正如我在講話中提到的那樣，這會在第三季度增加營銷成本，但直到第四季度才產生收入季度大部分。所以我認為這就是你所看到的季度之間的分歧，吉姆。

And then lastly, things to remember about last year, in the fourth quarter of last year, we had an inventory-related charge based on the reduction in our inventory. We took a charge related to capitalized overhead that was positioned in inventory. So that is a positive for us as we anniversary that this year.

最後，關於去年的事情要記住，去年第四季度，我們根據庫存的減少收取了與庫存相關的費用。我們收取了與庫存中的資本化間接費用相關的費用。所以這對我們來說是積極的，因為我們今年是周年紀念日。

So the next question comes from Paul Lejuez from Citi.

所以下一個問題來自花旗的 Paul Lejuez。

This is Brandon Cheatham on for Paul. I was wondering if you could talk a little bit about how ticket and traffic trended this quarter? And when did you start seeing this kind of inflection in the kind of higher price point penetration that seemingly is driving results? And what are your expectations for that price point for the rest of the year?

這是保羅的布蘭登·奇塔姆。我想知道您能否談談本季度的門票和交通趨勢？您是什麼時候開始看到這種似乎正在推動結果的更高價格滲透率的拐點？您對今年剩餘時間的這個價格點有什麼期望？

So in terms of traffic, we actually saw traffic begin to go down in the spring. So call it, March, April kind of time line with a more significant drop after Mother's Day, brick-and-mortar traffic this year relative to e-commerce traffic has been stronger that's customers' desire to return to store. Of course, in our case, it's really not just about e-commerce sales. Digital for us is very much about browsing and preparing customers for their store journey, we have 2/3 of our customers now that are having a multichannel experience with us, but we have seen more purchase and more traffic happening in brick-and-mortar.

所以在流量方面，我們實際上看到春天的流量開始下降。這麼說吧，3、4月這種時間線，母親節後下降比較明顯，今年實體客流量相對電商客流量更強了，那就是顧客回店的慾望。當然，在我們的案例中，這真的不僅僅是電子商務銷售。數字化對我們來說非常重要的是瀏覽客戶並為他們的商店之旅做好準備，我們現在有 2/3 的客戶與我們一起擁有多渠道體驗，但我們看到更多的購買和更多的流量發生在實體店.

And then in terms of the sort of bifurcation of challenged lower price points and growing higher price points, I would say that was most pronounced following Mother's Day. We saw that as a big kind of June sort of phenomenon. July, the surprise of July was that higher price points actually became a bit more challenged. But as we've said, we have seen some stabilization in August from that.

然後就挑戰的較低價格點和不斷增長的較高價格點的分歧而言，我想說這在母親節之後最為明顯。我們認為這是六月的一種大現象。七月，七月的驚喜是更高的價格點實際上變得更具挑戰性。但正如我們所說，我們在 8 月份看到了一些穩定。

Okay. And is your guidance assumed that, that trend kind of continues in the higher price points? Or are you expecting kind of an inflection in your lower value range?

好的。您的指導是否假設這種趨勢會在更高的價格點繼續？或者您是否期望在您的較低價值範圍內出現拐點？

So the way to think about it is our high guide assumes a continuation of the Q2 trend on comp, carries into Q3, and Q4 is positioned with a modest improvement, largely from noncomp activities that we're putting in place to improve performance. Our low guide positions Q3 and Q4 comps similar to the trends that we saw in July and August. And the underlying assumption here is that the macro environment remains constrained in the back half.

因此，考慮它的方式是我們的高指導假設第二季度的趨勢延續到第三季度，第四季度的定位有適度的改善，主要來自我們為提高績效而實施的非補償活動。我們在第三季度和第四季度的低指導位置與我們在 7 月和 8 月看到的趨勢相似。這裡的基本假設是宏觀環境在後半部分仍然受到限制。

Got it. That's helpful. And then I was wondering, you've talked in the past about gaining more share of kind of wedding day related jewelry. I think historically, you did a good job of capturing the engagement and then you didn't capture as much of the wedding day, as you wanted. So I was wondering if you could kind of talk about how is your penetration on the wedding day related jewelry going? Where do you think that, that can kind of grow to and where you are in kind of that progression?

知道了。這很有幫助。然後我想知道，您過去曾談到獲得更多與婚禮相關的珠寶的份額。我認為從歷史上看，你在捕捉訂婚方面做得很好，然後你沒有如你所願地捕捉到婚禮當天的大部分時間。所以我想知道您是否可以談談您在婚禮當天相關珠寶的滲透情況如何？你認為那會發展到哪裡，你在哪裡？

I would say we're reasonably early in that progression, but our first-party data capture the investments we've made in our consumer data platform, all of that is really a big help to us. So we are, I would say, more than ever able to not just get to know couples at the engagement stage but then really stay with them to work toward wedding band purchases and all the different wedding day purchases I talked about. The research that I quoted is Signet's proprietary research around wedding activities and the fact that 43% of all gifts given around the wedding or jewelry, we think, is a big opportunity for us.

我想說我們在這一進程中處於相當早的階段，但我們的第一方數據捕獲了我們在消費者數據平台上所做的投資，所有這些對我們來說確實有很大幫助。因此，我想說，我們比以往任何時候都更能不僅在訂婚階段結識新人，而且真正與他們在一起，努力購買結婚戒指和我談到的所有不同的婚禮當天購買。我引用的研究是 Signet 關於婚禮活動的專有研究，我們認為，在婚禮或珠寶周圍贈送的所有禮物中有 43% 對我們來說是一個巨大的機會。

We are launching new programs to go after that. So give guides that help the bride. She is a big to-do list coming out of the engagement and working toward the wedding.

我們正在推出新的計劃來實現這一目標。因此，請提供幫助新娘的指南。她是一個很大的待辦事項清單，從訂婚中走出來，為婚禮而努力。

So the more we can help on that, the better. And I'm excited about some of the other innovations. So I talked in my remarks about what we're doing on Rocksbox and having launched a bridal event rental program. That's a great opportunity for brides to be able to where nice or jewelry than they might have otherwise for all of their events, whether it's the bachelorette party or announcement of the engagement all the way to the wedding day.

所以我們在這方面能提供的幫助越多越好。我對其他一些創新感到興奮。因此，我在評論中談到了我們在 Rocksbox 上所做的事情以及推出了婚禮活動租賃計劃。對於新娘來說，這是一個很好的機會，可以在他們所有的活動中，無論是單身派對還是宣布訂婚一直到婚禮當天，都可以擁有比其他方式更好的珠寶或珠寶。

And of course, once she's been looking at those photos for a year or more of that beautiful jewelry, we're certainly then using our data and our targeted marketing efforts to try to drive a choice of that as a great first anniversary gift or birthday gift during the first year. So it's really a combination of the consumer insights that we've developed the work that we're doing with our CDP to capture more and more information and be more helpful to our customers throughout the process and then the assortment that we're putting in place that we think can really help them. So our services business coming to life matched up with data and assortment.

當然，一旦她看了一年或更長時間的那些漂亮珠寶的照片，我們肯定會使用我們的數據和有針對性的營銷努力來嘗試將其作為一周年紀念禮物或生日禮物的選擇第一年的禮物。因此，這實際上是我們開發的消費者洞察力的組合，我們正在使用 CDP 進行工作，以捕獲越來越多的信息，並在整個過程中為我們的客戶提供更多幫助，然後是我們投入的分類我們認為可以真正幫助他們的地方。因此，我們的服務業務與數據和分類相匹配。

Our final question comes from Mauricio Serna from UBS.

我們的最後一個問題來自瑞銀的 Mauricio Serna。

I wanted to ask just very quickly, you mentioned that you closed the Blue Nile acquisition. So I'm just wondering like is that something that will be already be reflected in Q3? Or it just -- does that begin in Q4? So maybe if you could provide some guidance around that? And then maybe if you could elaborate a little bit more about how you see this acquisition versus specifically the James Allen business. Just wondering if there's any big customer overlap or anything there that could be leading to some cannibalization between both formats?

我想很快問一下，你提到你完成了對 Blue Nile 的收購。所以我只是想知道這是否已經反映在第三季度？或者它只是 - 從第四季度開始？所以也許你能提供一些指導？然後也許你能詳細說明一下你如何看待這次收購與特別是詹姆斯艾倫的業務。只是想知道是否有任何大的客戶重疊或任何可能導致兩種格式之間相互蠶食的東西？

And then maybe if you can talk about Q3 sales outlook, I think it implies roughly 24% sales growth versus in 2019. But if you take your guidance for the year, I think that assumes like a 20% growth in Q4. So just wondering what are you thinking there in the guidance for sales?

然後也許如果你能談談第三季度的銷售前景，我認為這意味著與 2019 年相比，銷售額增長大約 24%。但如果你接受今年的指導，我認為這假設第四季度增長 20%。所以只是想知道您在銷售指南中的想法是什麼？

Thanks, Mauricio. I'll take the first one, and then I'll come back on the guidance, Gina. So that Blue Nile acquisition we closed in the third quarter, and it will be reflected in our performance from the point of closing forward. As I mentioned, Mauricio, we were -- our teams have been working diligently. They've been on the ground there for about a week, and we have really been working very closely to develop the forecast and the plans collectively for the balance of the year. So stay tuned on that. But as I mentioned, it is not in our guidance for the balance of this year.

謝謝，毛里西奧。我會拿第一個，然後我會回來指導，吉娜。因此，我們在第三季度完成了對 Blue Nile 的收購，這將反映在我們從關閉的角度出發的業績中。正如我提到的，毛里西奧，我們是——我們的團隊一直在努力工作。他們已經在那里工作了大約一周，我們一直在密切合作，共同製定今年餘下時間的預測和計劃。所以請繼續關注。但正如我所提到的，這不在我們對今年餘額的指導中。

And then in terms of incrementality of Blue Nile, we see that as a great market share growth opportunity. We did a considerable amount of consumer research before the acquisition. And we found that blue Nile has a distinctive cohort, it's younger, more diverse, more affluent than the rest of our portfolio.

然後就 Blue Nile 的增量而言，我們認為這是一個巨大的市場份額增長機會。在收購之前，我們進行了大量的消費者研究。我們發現藍色尼羅河擁有一個獨特的群體，它比我們的其他投資組合更年輕、更多樣化、更富裕。

They also have some different go-to-market models versus our James Allen business. So with 23 showrooms, they have a very low inventory model, but a high-touch, high-service environment for customers to be able to see styles, try-on pieces, really get a feel for what they want, but then they place the order online in a marketplace that's very similar what we do on James Allen.

與我們的 James Allen 業務相比，他們也有一些不同的上市模式。因此，他們擁有 23 個陳列室，庫存模式非常低，但提供高接觸、高服務的環境，讓客戶能夠看到款式、試穿件，真正感受到他們想要的東西，然後他們就放置市場上的在線訂單與我們在 James Allen 上所做的非常相似。

So there are a lot of back-office synergies, we think that can come to life in this acquisition, which then will give us more fuel to really invest to grow both of these as distinctive banners within our portfolio. And to Joan's point, we did -- we had our team out meeting with the Blue Nile team the day after we closed. And we've just been so pleased with the caliber of talent in the Blue Nile organization and the excitement that they have to really make this transition a very successful one. So I would say we're off to a good start on that front.

因此，有很多後台協同效應，我們認為這可以在這次收購中實現，這將為我們提供更多真正投資的動力，以將這兩者發展為我們投資組合中的獨特旗幟。就瓊而言，我們做到了——我們在關閉的第二天讓我們的團隊與 Blue Nile 團隊會面。我們對 Blue Nile 組織中的人才水平以及他們必須真正使這一過渡非常成功的興奮感到非常滿意。所以我想說我們在這方面有了一個良好的開端。

Then to address the Q3, Q4, as I mentioned, the high guide assumes a continuation of the Q2 trend on a comp basis. And it carries -- that carries into Q3 and modest improvement in Q4 related to non-comp activities that the team has tested and put in play for the holiday -- it will put in play for the holiday season. On the low end, the guide positions Q3 and Q4 similar to the trend that we saw in July and August, and I believe that's more conservative and just put out the note again that we did see some improvement in August, which gave us confidence in the high guide.

然後，正如我所提到的，為了解決 Q3、Q4，高指導假設 Q2 趨勢在比較的基礎上延續。它攜帶 - 進入第三季度並在第四季度與團隊已經測試並為假期投入使用的非補償活動相關的適度改進 - 它將在假期季節投入使用。在低端，第三季度和第四季度的指導位置與我們在 7 月和 8 月看到的趨勢相似，我認為這更加保守，只是再次發布說明，我們確實在 8 月看到了一些改善，這讓我們對高指導。

But just to be really clear, Blue Nile is not in our guide at this point in time. It's just too early for us to really know what that's going to look like for Q3 or Q4.

但需要明確的是，Blue Nile 目前不在我們的指南中。我們現在要真正知道第三季度或第四季度會是什麼樣子還為時過早。

That's very helpful. And any thoughts on the share repurchases outlook or potential share repurchases given that you still have over $600 million available?

這很有幫助。鑑於您仍有超過 6 億美元的可用資金，您對股票回購前景或潛在的股票回購有何想法？

Well, what we said is that we -- it remains part of our state of capital priorities. And given our belief that we believe our stock is undervalued, that we will remain part of our priorities, and we have a multiyear program and the authorization is $622 million.

好吧，我們所說的是我們 - 它仍然是我們資本優先事項狀態的一部分。鑑於我們相信我們的股票被低估，我們仍將是我們優先事項的一部分，我們有一個多年計劃，授權為 6.22 億美元。

We have no further questions left in the queue. So I'll hand it back to management for any closing remarks.

隊列中沒有其他問題了。因此，我將把它交還給管理層，以備不時之需。

I want to thank everyone again for joining us today. What I hope you took away is that Signet has the strategic clarity, structural advantages, financial flexibility and winning culture to deliver consistent, reliable and sustainable growth and meaningful shareholder value. Thank you, everyone.

我要再次感謝大家今天加入我們。我希望你帶走的是，Signet 具有戰略清晰性、結構優勢、財務靈活性和製勝文化，可以提供持續、可靠和可持續的增長以及有意義的股東價值。謝謝大家。

Thank you all for joining. This now concludes today's call. Please disconnect your lines.

謝謝大家的加入。今天的電話會議到此結束。請斷開您的線路。