Signet Jewelers Ltd (SIG) 2023 Q4 法說會逐字稿

Hello and welcome to the Signet Jewelers Fourth Quarter of Fiscal 2023 Earnings Call. My name is Alex and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎來到 Signet Jewelers 2023 財年第四季度財報電話會議。我叫亞歷克斯，今天我將負責協調電話會議。 （操作員說明）

I'll now hand over to your host Vince Ciccolini, Senior Vice President Finance and Chief Accounting Officer to begin, please go ahead.

我現在將交給主持人 Vince Ciccolini，財務高級副總裁兼首席會計官開始，請繼續。

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

早上好，歡迎來到我們的第三季度收益電話會議。 Signet 的首席執行官吉娜·德羅索斯 (Gina Drosos) 今天參加電話會議；首席財務、戰略和服務官 Joan Hilson。

During today's presentation, we will 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存在許多風險和不確定性，實際結果可能存在重大差異。我們敦促您閱讀我們的 10-K 表年度報告、10-Q 表季度報告和 8-K 表當前報告中的風險因素、警示性語言和其他披露。除非法律要求，否則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'll discuss certain non-GAAP financial measures. For further discussion of the non-GAAP financial measures as well as reconciliations of the non-GAAP financial 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 GAAP 財務指標。如需進一步討論非 GAAP 財務指標以及非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬，投資者應查看我們在網站 www.signetjewelers.com/investors 上發布的新聞稿。

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

有了這個，我會把電話轉給吉娜。

Thanks to all of you for joining us today. Let me begin by thanking our entire Signet team for delivering on our commitment. Their dedication to our customers and their agility in the face of unrelenting challenges and change continues to be our most enduring competitive advantage.

感謝大家今天加入我們。首先讓我感謝我們整個 Signet 團隊兌現我們的承諾。他們對客戶的奉獻精神以及他們在面對無情挑戰和變化時的敏捷性仍然是我們最持久的競爭優勢。

Through fiscal '23, our company has been recognized as a great place to work certified company for 3 years in a row. And for the sixth consecutive year, we've been honored as the only specialty retailer included in the Bloomberg Gender-Equality Index. I'm grateful to lead such a strong and diverse team.

截至 23 財年，我們公司已連續 3 年被公認為最佳工作場所認證公司。我們連續第六年榮膺彭博社性別平等指數中唯一的專業零售商。我很感激能夠領導這樣一支強大而多元化的團隊。

There's one clear message I want to convey today. Our Signet team delivered in fiscal year '23, and are poised to do it again in fiscal '24. There are three reasons for confidence. First, Signet is uniquely positioned to grow market share because of our differentiated and broad banner portfolio, industry leading connected commerce presence, and ability to invest in our competitive advantages consistently and sustainably.

今天我想傳達一個明確的信息。我們的 Signet 團隊在 23 財年交付，並準備在 24 財年再次交付。有信心的三個原因。首先，由於我們差異化和廣泛的旗幟產品組合、行業領先的互聯商務存在以及持續和可持續地投資於我們的競爭優勢的能力，Signet 在增加市場份額方面處於獨特的地位。

Second, we are confident in our ability to deliver an annual double digit non-GAAP EBIT margin based on our transformed operating model and the flexibility it creates.

其次，我們有信心根據我們轉型後的運營模式及其創造的靈活性，實現每年兩位數的非 GAAP EBIT 利潤率。

And third, our healthy balance sheets and strong cash generation enables us to invest in our business, while also consistently returning meaningful cash to shareholders.

第三，我們健康的資產負債表和強勁的現金生成能力使我們能夠投資於我們的業務，同時也持續向股東返還有意義的現金。

At this time last year, we expected the U.S. jewelry and watch market to be down low to mid-single digits, with particular pressure at lower price points, coupled with the difficult year-over-year comps. Added to that was the volatility created by the war in Ukraine, inflationary shocks, economic turmoil in the UK, and a major winter storm occurring in the peak selling period before Christmas. As a result, the category declined to the lowest end of our range. These were serious headwinds.

去年這個時候，我們預計美國珠寶和手錶市場將下滑至中等個位數，尤其是在較低的價格點，再加上困難的同比比較。除此之外，還有烏克蘭戰爭、通脹衝擊、英國經濟動盪以及聖誕節前銷售高峰期發生的一場大冬季風暴造成的波動。結果，該類別下降到我們範圍的最低端。這些都是嚴重的不利因素。

During three of the highest revenue days of the year, winter storm Elliott caused almost 1/3 of our stores to close or operate at reduced hours. And consumers in roughly 3/4 of our trade areas were under a travel advisory warning. For perspective, these days are 8x more valuable than an average shopping day in January. For example, in a way that is unique to jewelry, a critical consumer segment for our category at holiday is the late inspiration seeker, who typically spends more than other consumer segments and buys gifts in person for their significant other in the last days before Christmas.

在一年中收入最高的三天裡，冬季風暴埃利奧特導致我們近 1/3 的商店關閉或縮短營業時間。我們大約 3/4 貿易區的消費者受到了旅行警告警告。從長遠來看，這些天的價值是 1 月份平均購物日的 8 倍。例如，以一種珠寶獨有的方式，假期中我們類別的一個關鍵消費者群體是遲到的靈感尋求者，他們通常比其他消費者群體花費更多，並在聖誕節前的最後幾天親自為他們的另一半購買禮物.

Many of these shoppers delayed their purchases as long as possible this year, with the storm disrupting their normal behavior at a critical time. But our team pivoted quickly in the face of all these challenges, enabling us to deliver our commitments and provide strong returns to shareholders. This is a testament to our culture of agility and innovation, the flexibility we've created in our operating model and to our financial liquidity. We've created both the culture and the capabilities to adjust as market conditions require.

今年，這些購物者中的許多人盡可能推遲了他們的購物，因為風暴在關鍵時刻擾亂了他們的正常行為。但面對所有這些挑戰，我們的團隊迅速轉變，使我們能夠兌現承諾並為股東提供豐厚的回報。這證明了我們的敏捷和創新文化、我們在運營模式中創造的靈活性以及我們的財務流動性。我們創造了文化和能力來根據市場條件需要進行調整。

For fiscal '23, we estimate -- we again outpaced category growth and gained 40 basis points of market share, driving our share to 9.7%. We delivered 7.8 billion of revenue up slightly versus fiscal '22 and an annual EBIT margin of 10.8%. Despite a negative 6.1% sales comp. We also executed well on our capital priorities, which are to, first, invest in growth through organic investments and M&A. Second, optimize our capital structure and maintain a leverage ratio less than 2.75x EBITDAR. And third, return cash to shareholders through share repurchases and dividends, in line with our commitment to be a dividend growth company.

對於 23 財年，我們估計 - 我們再次超過類別增長並獲得 40 個基點的市場份額，將我們的份額推高至 9.7%。與 22 財年相比，我們實現了 78 億美元的收入，年息稅前利潤率為 10.8%。儘管銷售額為負 6.1%。我們還很好地執行了我們的資本優先事項，首先是通過有機投資和併購投資於增長。其次，優化我們的資本結構並保持低於 2.75 倍 EBITDAR 的槓桿率。第三，根據我們成為股息增長公司的承諾，通過股票回購和派息向股東返還現金。

We allocated more than $1 billion of capital in fiscal '23 to achieve these priorities. Specifically, this included $210 million of CapEx, $426 million of share repurchases, $390 million for the cash acquisition of Blue Nile, and $37 million to shareholders in the form of common dividends, all while maintaining a 2x leverage ratio that is well below our stated goal. Our strong liquidity position allowed for these investments and shareholder returns. Based on our confidence in our operating performance and cash flow, we are raising the dividend to $0.23 per share on a quarterly basis, and are increasing our multi-year share repurchase program by $263 million for a total authorization of $775 million.

我們在 23 財年分配了超過 10 億美元的資金來實現這些優先事項。具體而言，這包括 2.1 億美元的資本支出、4.26 億美元的股票回購、3.9 億美元的現金收購 Blue Nile，以及以普通股息形式向股東派發的 3700 萬美元，同時保持遠低於我們聲明的 2 倍槓桿率目標。我們強大的流動性狀況允許這些投資和股東回報。基於我們對經營業績和現金流的信心，我們將每季度的股息提高至每股 0.23 美元，並將我們的多年期股票回購計劃增加 2.63 億美元，總授權額為 7.75 億美元。

For the fourth quarter, revenue came in at $2.7 billion, down 5.2% or a down 9.1% comp. Blue Nile contributed to our total growth and performed ahead of sales and profit expectations in its first full quarter as part of our portfolio. It was slightly accretive to the quarter. We continue to see strength at higher price points overall. And the strength of our fashion assortment continues, helping to partially offset the expected decline in bridal. Importantly, we saw some recovery post-holiday and we had one of our strongest January in Signet history.

第四季度收入為 27 億美元，下降 5.2%，同比下降 9.1%。作為我們投資組合的一部分，Blue Nile 為我們的總體增長做出了貢獻，並且在其第一個完整季度的銷售額和利潤超出預期。這對本季度略有增加。我們繼續看到整體價格較高的實力。我們的時尚品類繼續保持強勁勢頭，有助於部分抵消婚紗的預期下降。重要的是，我們在節後看到了一些復甦，我們經歷了 Signet 歷史上最強勁的一月。

As we look ahead, the fiscal '24, we believe the jewelry industry will continue to be pressured by a combination of macroeconomic and industry specific bridal dynamics. We forecast the jewelry industry to be down mid-single digits this year. Given this, we expect to deliver topline results that are flat to down low single digits, and believe we are well positioned to continue gaining market share.

展望未來，即 24 財年，我們認為珠寶行業將繼續受到宏觀經濟和行業特定婚禮動態的雙重壓力。我們預測珠寶行業今年將出現中等個位數的下滑。鑑於此，我們預計將實現持平至低個位數的營收業績，並相信我們有能力繼續獲得市場份額。

Despite the anticipated economic and industry headwinds, we also believe our strength in the operating model will continue to deliver annual double digit operating margins. And we expect to maintain our approach to capital allocation, investing to widen our competitive advantages and deliver strong returns to shareholders.

儘管預期經濟和行業逆風，但我們也相信我們在運營模式方面的優勢將繼續帶來每年兩位數的運營利潤率。我們希望保持我們的資本配置方法，投資以擴大我們的競爭優勢並為股東帶來豐厚的回報。

I want to comment briefly on bridal, which has been temporarily impacted by COVID. The jewelry industry's bridal segment is composed of two distinct parts; weddings, and engagements. After a decline during COVID, fiscal '23 was the year of the wedding, a 40-year 00:17:43 high. Having anticipated this, Signet delivered strong growth in wedding bands and bridal jewelry.

我想簡單評論一下暫時受到 COVID 影響的 bridal。珠寶行業的婚慶細分市場由兩個截然不同的部分組成；婚禮和訂婚。在 COVID 期間下跌之後，23 財年是結婚之年，創下 40 年 00:17:43 的新高。預料到這一點後，Signet 在結婚戒指和新娘首飾方面實現了強勁增長。

Meanwhile, engagements held flat during COVID at pre-pandemic levels but declined low double digits in fiscal '23, and will again decline low double digits in fiscal '24. We expect fiscal '24 to be the trough of engagements, with fiscal '25 seeing a return of growth and fiscal '26 returning to normalize levels.

與此同時，在 COVID 期間，參與度保持在大流行前的水平，但在 23 財年下降了兩位數的低位，並將在 24 財年再次下降兩位數的低位。我們預計 24 財年將是接觸的低谷期，25 財年將恢復增長，26 財年將恢復正常水平。

So why this shift? It's temporary and COVID driven. We have rich proprietary data on couples behavior. Engagements typically occur approximately 3 years after couples began dating. COVID had a meaningful impact on dating, delaying the formation of new relationships because of the lack of in-person activities for the majority of 2020. So as we began to lapse that 3 year period, since COVID began, we expect engagements and engagement rings sales to start recovering toward the end of fiscal '24 and continue rebounding in fiscal '25 and '26.

那麼為什麼會發生這種轉變呢？這是暫時的，由 COVID 驅動。我們擁有豐富的夫妻行為專有數據。訂婚通常發生在情侶開始約會後大約 3 年。 COVID 對約會產生了重大影響，由於在 2020 年的大部分時間裡缺乏面對面的活動，因此推遲了新關係的形成。因此，隨著 3 年期的結束，自 COVID 開始以來，我們期待訂婚和訂婚戒指銷售額將在 24 財年末開始恢復，並在 25 和 26 財年繼續反彈。

The important point is this: bridal jewelry is a great business to be in. Absent COVID, it has been and we believe will be, again, a very steady business with roughly 2.8 million engagements and 2.2 million weddings each year. It is the financial and emotional point of market entry to our category, and the opportunity to build relationships and trust that drive lifetime value. With our leadership position in this important segment, Signet is well positioned to take full advantage of the engagement recovery as it happens, both to grow sales and gain market share.

重要的一點是：婚嫁首飾是一項值得從事的偉大業務。沒有 COVID，它一直是而且我們相信將再次成為一項非常穩定的業務，每年約有 280 萬次訂婚和 220 萬次婚禮。這是進入我們類別的市場的財務和情感點，也是建立關係和信任的機會，可推動終身價值。憑藉我們在這一重要領域的領導地位，Signet 可以充分利用參與度恢復的機會，既可以增加銷售額，也可以增加市場份額。

In fiscal '24, we will continue to widen the mode of competitive advantages that we've built around our business in 3 interdependent ways. First, we're continuing to differentiate our banners with improved in-store experiences, including new store concept pilots and where appropriate, higher price point assortments. As we cast our net wider covering more customer demographics, we have higher potential to grow market share.

在 24 財年，我們將繼續以 3 種相互依存的方式擴大圍繞我們的業務建立的競爭優勢模式。首先，我們將繼續通過改進店內體驗來區分我們的橫幅廣告，包括新店概念試點和在適當情況下更高價位的產品組合。隨著我們將網絡撒得更廣，覆蓋更多的客戶人口統計數據，我們有更大的潛力來增加市場份額。

Second, we are continuing to strengthen our capabilities to accelerate new customer acquisition, to increase repeat purchases, to drive higher transaction values, and to improve the increasing sophistication of our supply chain.

其次，我們正在繼續加強我們的能力，以加速新客戶的獲取，增加重複購買，推動更高的交易價值，並改善我們日益複雜的供應鏈。

Third, we're growing the value of our lifetime customer relationships by strengthening our service offerings through warranty programs, repair services, piercing services, and our new loyalty program.

第三，我們通過保修計劃、維修服務、穿孔服務和新的忠誠度計劃來加強我們的服務，從而增加我們終身客戶關係的價值。

Let's take a closer look at each of these efforts. First, we're continuing to differentiate our banners. Given our breadth, we're able to serve accessible luxury customers, digitally native customers, and value-conscious customers in a scaled way that no other company in our industry can. We have clarified our banner value propositions, significantly reduced overlap, and created the flexibility to lean into trends to best meet changing customer's needs and economic conditions.

讓我們仔細看看這些努力中的每一個。首先，我們繼續區分我們的橫幅廣告。鑑於我們的廣度，我們能夠以我們行業中其他公司無法比擬的規模化方式為無障礙奢侈品客戶、數字原生客戶和注重價值的客戶提供服務。我們闡明了我們的重要價值主張，顯著減少了重疊，並創造了適應趨勢的靈活性，以最好地滿足不斷變化的客戶需求和經濟條件。

For example, over the past several years, we've successfully tiered up our product mix, to drive penetration at higher price points, and to move our customers up the value chain where appropriate within each banner. Signet's average transaction value is up over 30% as a result with higher price points also resulting in higher service plan attachment.

例如，在過去的幾年裡，我們成功地對我們的產品組合進行了分層，以更高的價格推動滲透，並在每個橫幅中適當地將我們的客戶提升到價值鏈的上游。 Signet 的平均交易價值上漲了 30% 以上，因為更高的價格點也導致更高的服務計劃附件。

In addition, in anticipation of some cyclicality in the bridal segment, we heightened focus on sentimental gifting and self-purchase occasions, resulting in fashion driving nearly 36% growth since pre-pandemic. These 2 strategic actions helped us to partially offset the double-digit decline in engagements in FY '23.

此外，由於預計婚慶市場會出現一些週期性，我們更加關注情感禮物和自購場合，導致時尚自大流行前以來增長了近 36%。這兩項戰略行動幫助我們部分抵消了 23 財年參與度兩位數的下降。

The next way we're differentiating our banners is by optimizing our store footprint. We've aggressively closed underperforming doors, over 1,000 of them over the past 6 years. Wearing in technology to enhance the connected commerce experience, and leveraging data to provide highly personalized service. In fact, our sales per square foot productivity has improved nearly 50% since the beginning of our transformation.

下一個讓我們的橫幅與眾不同的方法是優化我們的商店足跡。我們積極關閉表現不佳的門店，在過去 6 年中關閉了 1,000 多家。穿戴技術以增強互聯商務體驗，並利用數據提供高度個性化的服務。事實上，自轉型開始以來，我們每平方英尺的銷售額生產力提高了近 50%。

In fiscal '24, we expect to invest more than $100 million in our fleet to showcase our banners unique differentiators. This includes expansion of new stores with proven formats in key markets, continued repositioning or closing of low-performing stores, important sustainability investments like LED lighting and modern HVAC, and cosmetic upgrades in key markets to bring more doors to brand standard and deliver seamless banner experiences across channels.

在 24 財年，我們預計將在我們的機隊中投資超過 1 億美元，以展示我們橫幅廣告的獨特優勢。這包括在主要市場擴展具有成熟模式的新店，繼續重新定位或關閉表現不佳的商店，重要的可持續發展投資，如 LED 照明和現代 HVAC，以及在主要市場進行外觀升級，以提高品牌標準並提供無縫橫幅跨渠道體驗。

Here are a few examples that I'm especially excited about. We will be piloting new accessible luxury Jared concepts as we continue to shift to higher price points, along with additional selling features, offerings and technology. We are accelerating Diamonds Direct growth, leveraging Signet's scale to double our pace of store openings, and give us more exposure to this highly efficient mega store model. And we are opening a number of new Kay modular concepts, which require lower inventory and build-out costs, and delivered a very attractive return in our pilot.

這裡有一些我特別興奮的例子。隨著我們繼續轉向更高的價格點，以及額外的銷售功能、產品和技術，我們將試行新的無障礙豪華 Jared 概念。我們正在加速 Diamonds Direct 的增長，利用 Signet 的規模將我們的開店速度提高一倍，並讓我們更多地接觸到這種高效的大型商店模式。我們正在開放一些新的 Kay 模塊化概念，這些概念需要較低的庫存和擴建成本，並在我們的試點中提供了非常有吸引力的回報。

Importantly, fiscal '24 is also a year of marketing transformation. Marketing has been a competitive advantage for Signet for some time, given our scale and ability to build national brand recognition, coupled with a local marketing spend. With our new CDP coming online in fiscal '24, our marketing will become increasingly personalized. This advanced database and localized approach is important because we are seeing as much as a 40% increase in marketing efficiency. When we can identify a customer in social media, present them with the right item based on what we know about their needs, and then send them directly to a nearby store to complete the transaction.

重要的是，24 財年也是營銷轉型的一年。一段時間以來，營銷一直是 Signet 的競爭優勢，因為我們的規模和建立全國品牌知名度的能力，再加上本地營銷支出。隨著我們新的 CDP 在 24 財年上線，我們的營銷將變得越來越個性化。這種先進的數據庫和本地化方法非常重要，因為我們看到營銷效率提高了 40%。當我們可以在社交媒體上識別客戶時，根據我們對他們需求的了解向他們展示合適的商品，然後直接將他們送到附近的商店以完成交易。

Personalization is also an important theme for product in fiscal '24. Customers have a broad mindset when they think about custom jewelry. For some, it's simple, like engraving or tailored sizing. For others, it's configuring a piece from a set of options with a consultant in the store or virtually. For example, Kay and Zales will have more than 25 different configurators, giving our jewelry consultants and customers the ability to mix and match, cut quality and finish. And the fast-growing segment wants to combine and modify pieces, or design a custom piece entirely from scratch, even from a hand-drawn sketch that we transform into a beautiful bespoke piece of jewelry.

個性化也是 24 財年產品的一個重要主題。當客戶考慮定制珠寶時，他們的心態很寬泛。對於某些人來說，這很簡單，例如雕刻或量身定做尺寸。對於其他人來說，它是在店內或虛擬地與顧問一起從一組選項中配置一件。例如，Kay 和 Zales 將擁有超過 25 種不同的配置器，使我們的珠寶顧問和客戶能夠混合搭配、切工質量和修飾。快速增長的細分市場想要組合和修改作品，或者完全從頭開始設計定製作品，甚至是將手繪草圖轉化為精美的定制珠寶。

High-touch in-store events are a great way to co-create custom jewelry, and can be uniquely shaped by each banner's differentiators. We generated nearly $100 million through our pilot events in fiscal '23, and we see meaningful upside as we expand them across the portfolio. We are under-indexed in important areas of product personalization, leaving us plenty of room to grow with this trend. In fact, our proprietary research indicates that this is a $700 million growth opportunity across Signet, making it an investment priority for us this year and beyond.

高觸感店內活動是共同打造定制珠寶的絕佳方式，並且可以根據每個橫幅的差異化因素進行獨特塑造。我們通過 23 財年的試點活動獲得了近 1 億美元的收入，並且隨著我們將這些活動擴展到整個投資組合，我們看到了有意義的上行空間。我們在產品個性化的重要領域的指標不足，這讓我們有足夠的空間來順應這一趨勢。事實上，我們的專有研究表明，這是整個 Signet 的 7 億美元增長機會，使其成為我們今年及以後的投資重點。

The next way we're widening our moat is by continuing to invest in our operating model, including the scale and sophistication of our supply chain. We've been on a journey to both buy product less expensively, leveraging our scale while also using data to improve our inventory turn and store assortments. For example, we've vertically integrated within our operations, enabling us to remove layers of cost in the system. Avoiding the middleman, so to speak, and offering the best value to our customers despite inflationary and other pressures.

我們拓寬護城河的下一個方法是繼續投資於我們的運營模式，包括我們供應鏈的規模和復雜性。我們一直在努力以更低的價格購買產品，利用我們的規模，同時使用數據來改善我們的庫存周轉率和商店分類。例如，我們在我們的運營中進行了垂直整合，使我們能夠消除系統中的成本層。可以這麼說，避免中間人，並在通貨膨脹和其他壓力下為我們的客戶提供最佳價值。

For example, in fiscal '23, we introduced a new sourcing system, which we call the Loop. This proprietary system gives us far more visibility into components and labor costs across our banners. And the ability to break apart, analyze and act on the components of product costs. In addition, machine learning and AI are driving increased efficiency and inventory costing and pricing, moving us from a sequential test and react approach to a best-in-class data-driven analytical model for both price and promotion. We're investing in these capabilities because they are already unlocking significant margin benefits.

例如，在 23 財年，我們引入了一個新的採購系統，我們稱之為 Loop。這個專有系統使我們能夠更清楚地了解橫幅中的組件和人工成本。以及分解、分析和處理產品成本組成部分的能力。此外，機器學習和人工智能正在推動提高效率和庫存成本核算和定價，使我們從順序測試和反應方法轉變為用於價格和促銷的一流數據驅動分析模型。我們正在投資這些功能，因為它們已經釋放出可觀的利潤收益。

One point I want to underscore is that virtually all of the capabilities that I've referenced here and many others are fueled by the investments we've made in digital technology and data analytics. Since forming our digital organization 4 years ago, and ramping up our transformational investments over the past 2 years, we've more than doubled the return on our investments.

我想強調的一點是，實際上我在這裡提到的所有功能以及許多其他功能都是由我們在數字技術和數據分析方面的投資推動的。自 4 年前組建我們的數字化組織並在過去 2 年加大轉型投資以來，我們的投資回報率翻了一番還多。

We continue to make very meaningful progress across digital. Fiscal '23 was the best Cyber Monday in Signet history with traffic up 18% and an 11% increase in demand revenue versus last year. And we're seeing improvements across nearly all our digital touch points. More customers are adding ESAs to their orders, up 12% versus a year ago in Q4. Royalty digital enrollment was up 2.9x in Q4 compared to Q3. Two-way SMS now represents 20% of digital sales and support contacts, growing fast as a channel of choice. And 40% of customers who engage are virtual jewelry consultants ultimately purchase in store.

我們繼續在數字領域取得非常有意義的進展。 23 財年是 Signet 歷史上最好的網絡星期一，與去年相比，流量增長了 18%，需求收入增長了 11%。我們看到幾乎所有數字接觸點都有改進。越來越多的客戶將 ESA 添加到他們的訂單中，與去年第四季度相比增長了 12%。與第三季度相比，第四季度版稅數字註冊人數增長了 2.9 倍。雙向 SMS 現在佔數字銷售和支持聯繫人的 20%，並作為一種選擇渠道快速增長。參與的客戶中有 40% 是虛擬珠寶顧問，最終會在店內購買。

In total, digital as a percent of overall sales is almost 4x pre-transformation levels. Our connected commerce presence is a driving force behind our growth, maximizing the enormous potential of our team. And we will continue to invest in this strength as a critical competitive advantage.

總的來說，數字銷售佔總銷售額的百分比幾乎是轉型前水平的 4 倍。我們的互聯商務存在是我們成長的推動力，最大限度地發揮了我們團隊的巨大潛力。我們將繼續投資於這一優勢，將其作為一項關鍵的競爭優勢。

The third way we're extending our advantages is by continuing to invest in our team and our culture. We know that our team members continue to be inspired by Signet's purpose and are confident in our strategy, which drives our performance and has also helped improve retention by 4 points to 80% in the past year. Since the beginning of our transformation, we've seen a 15-point jump in the organization's belief in our growth strategy. And we've seen a nearly 30 point increase in our team's connection to our purpose of inspiring Love.

我們擴大優勢的第三種方式是繼續投資於我們的團隊和我們的文化。我們知道，我們的團隊成員繼續受到 Signet 宗旨的啟發，並對我們的戰略充滿信心，這推動了我們的業績，並在過去一年中幫助將保留率提高了 4 個百分點，達到 80%。自我們開始轉型以來，我們已經看到組織對我們增長戰略的信心躍升了 15 個百分點。我們已經看到我們團隊與我們激發愛的目的的聯繫增加了近 30 分。

We are building on our strong engagement scores by investing in our team's growth as retail leaders through advanced learning and development. We call it Brilliant University. This growth focused training improves our customer experiences, drives execution and agility, and enables performance and career growth for every team member who participates in the program. This past year, the average Signet team member visited Brilliant University 23x, completed nearly 10 courses in virtual classes and consent 12 hours of training content.

我們正在通過高級學習和發展投資於我們的團隊作為零售業領導者的成長，從而鞏固我們強大的參與度分數。我們稱之為輝煌大學。這種以增長為中心的培訓改善了我們的客戶體驗，提高了執行力和敏捷性，並為參與該計劃的每個團隊成員提供了績效和職業發展。在過去的一年裡，Signet 團隊成員平均訪問 Brilliant University 23 次，完成近 10 門虛擬課程課程並同意 12 小時的培訓內容。

Usage of our training and development offerings increased 14% last year compared to the prior year, with 15% more overall course completions and a 76% increase in instructor-led training in fiscal '23 versus the year before. In total, more than 29,000 team members completed more than 650,000 hours of training and development in fiscal '23. Our team members are highly motivated to learn and excel, and we are continuing to add more offerings to develop leadership at all levels across the company.

與前一年相比，去年我們培訓和發展產品的使用率增加了 14%，總體課程完成率增加了 15%，23 財年的講師指導培訓比前一年增加了 76%。總共有超過 29,000 名團隊成員在 23 財年完成了超過 650,000 小時的培訓和發展。我們的團隊成員非常積極地學習和超越，我們將繼續增加更多的產品來培養公司各個層面的領導能力。

The key point is that we have achieved a cultural transformation at Signet, and created an environment that is dedicated to ongoing growth galvanized by our authentic sense of purpose. By investing in our strategic choices and capabilities, we are creating a wider mode of competitive advantages year after year. And we're able to continue fueling this growth through revenue generation and ongoing cost discipline that will deliver more than $100 million in cost savings in fiscal '24.

關鍵是我們在 Signet 實現了文化轉型，並創造了一個致力於在我們真正的使命感的激勵下持續發展的環境。通過投資於我們的戰略選擇和能力，我們正在年復一年地創造更廣泛的競爭優勢模式。我們能夠通過創收和持續的成本控制繼續推動這一增長，這將在 24 財年節省超過 1 億美元的成本。

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

關於這一點，我會把它交給 Joan。

Thanks, Gina, and good morning, everyone. Our key message today is clear. In fiscal '23, we delivered on our stated commitment of a double-digit annual non-GAAP operating margin or 10.8% on a negative comp of 6.1%. We delivered a consistent inventory turn of 1.4x, and we maintained a 2x leverage ratio even with the acquisition of Blue Nile, and cash returned to shareholders.

謝謝，吉娜，大家早上好。我們今天的關鍵信息很明確。在 23 財年，我們兌現了我們的承諾，即在 6.1% 的負利潤下實現兩位數的年度非 GAAP 營業利潤率或 10.8%。我們實現了 1.4 倍的一致庫存周轉率，即使在收購 Blue Nile 和向股東返還現金的情況下，我們也保持了 2 倍的槓桿率。

Our performance reflects our commitment to disciplined capital allocation. And inventory strategy that enables us to respond to market dynamics. And a data spending practice that maximizes returns on invested capital. We are confident in our ability to deliver our commitments again this year because our strategies and our operating model are working as designed, even when faced with the challenging headwinds that we expect in fiscal '24.

我們的業績反映了我們對有紀律的資本配置的承諾。以及使我們能夠響應市場動態的庫存策略。以及最大化投資資本回報的數據支出實踐。我們對今年再次兌現承諾的能力充滿信心，因為我們的戰略和運營模式正在按設計運作，即使面臨我們在 24 財年預期的具有挑戰性的逆風。

For the fourth quarter, we delivered total sales of $2.66 billion, a decrease of 5.2% from last year, and a down comp of 9.1%. This includes a 2 to 3-point negative impact related to severe weather on Signet's largest shopping days of the year, along with labor strikes and volatility in the U.K. economy.

第四季度，我們的總銷售額為 26.6 億美元，比去年下降 5.2%，同比下降 9.1%。這包括與 Signet 一年中最大購物日的惡劣天氣相關的 2 到 3 點負面影響，以及英國經濟的罷工和波動。

Services posted 4% revenue growth based on the success of our warranty program and service bundles, which as you'll remember, we rolled out over the summer. In addition, Blue Nile delivered sales ahead of expectations, and was slightly accretive in the fourth quarter. As a reminder, we expect more significant synergies over the summer of fiscal '24 as the integration is fully completed.

基於我們的保修計劃和服務包的成功，服務收入增長了 4%，您會記得，我們在夏季推出了這些服務包。此外，Blue Nile 的銷售額超出預期，第四季度略有增長。提醒一下，隨著整合的全面完成，我們預計在 24 財年夏季將產生更顯著的協同效應。

During the quarter, bridal declined on the expected engagement headwinds, while fashion had a sequential improvement throughout the quarter on strength at higher price points. Coming into the quarter, we expected that engagements would be down low double digits based on the consumer insights work that our teams have done. So we pivoted appropriately, moving our assortment into higher price points across our banners, value engineering products at the more value-sensitive tiers and refining our marketing and labor approach to capture share.

在本季度，婚紗由於預期的參與度逆風而下降，而時裝在整個季度因較高的價格點而出現環比改善。進入本季度，我們預計根據我們團隊所做的消費者洞察工作，參與度將下降兩位數。因此，我們進行了適當的調整，將我們的產品類別轉移到更高的價格點，在對價值更敏感的層級對工程產品進行價值評估，並改進我們的營銷和勞動力方法以獲取市場份額。

By leveraging the rich data we have, our team began tracking consumer behavior in time-based segments, last-minute customers, late in the year engagements, and post-holiday self-purchasing. We adjusted as needed to appeal to those customers at precisely the time they needed us most.

通過利用我們擁有的豐富數據，我們的團隊開始跟踪基於時間段的消費者行為、最後一分鐘的客戶、年底的參與和節後自購。我們根據需要進行調整，以便在客戶最需要我們的時候吸引他們。

While we knew the overall trend was negative, we still expected the week between Christmas and New Year's to be an important period for engagement and other shopping. We also think of that period after Christmas and New Year's, January 2 through Martin Luther King Day as the self-purchaser's holiday, which includes the redemption of gift cards. Our plan allowed us to partially recover from the storm, by having marketing already in place during these key windows.

雖然我們知道整體趨勢是負面的，但我們仍然預計聖誕節和新年之間的那一周將是訂婚和其他購物的重要時期。我們還將聖誕節和新年之後的這段時間（從 1 月 2 日到馬丁路德金紀念日）視為自購者的假期，其中包括兌換禮品卡。我們的計劃通過在這些關鍵窗口期間進行營銷，使我們能夠部分地從風暴中恢復過來。

For example, we made it easy to exchange gifts, and helps customers purchase gifts for others that they weren't able to get to in time for Christmas. The net result of all of this activity was that we were able to deliver within our guidance despite the storm. And post a record high January for Signet with only slightly elevated promotional activity to effectively manage our inventory position.

例如，我們讓交換禮物變得很容易，並幫助客戶為他們無法在聖誕節及時到達的其他人購買禮物。所有這些活動的最終結果是，儘管暴風雨，我們仍能夠在我們的指導範圍內交付。並為 Signet 創下歷史新高，促銷活動僅略有增加，以有效管理我們的庫存狀況。

Average transaction value in North America was up 3.9% in the fourth quarter and 11.2% for the year. Reflecting both the shift in our portfolio towards accessible luxury, and a tiering up of assortments within each banner where appropriate. As Gina mentioned, the anticipated decline in bridal impacted ATV in the quarter as did a more normalized mix of Banter in our portfolio. Compared to pre-pandemic levels, sales per square foot were up 35% in the quarter and 40% for the year, demonstrating the strength of our connected commerce presence, our data analytics capabilities and our optimized fleet.

北美第四季度平均交易額增長 3.9%，全年增長 11.2%。這既反映了我們的產品組合向輕奢品的轉變，也反映了在適當的情況下每個橫幅內的分類分級。正如 Gina 提到的那樣，本季度新娘的預期下降影響了 ATV，我們投資組合中更正常化的 Banter 組合也是如此。與大流行前的水平相比，本季度每平方英尺的銷售額增長了 35%，全年增長了 40%，這表明我們的互聯商業存在、數據分析能力和優化車隊的實力。

Now turning to gross margin. Non-GAAP gross margin in the quarter was 41.6%, up 40 basis points compared to last year. This improvement reflects the expected dilution of Blue Nile, which was more than offset by a 100 basis point merchandise margin expansion in our core businesses and growth in services.

現在轉向毛利率。本季度非美國通用會計準則毛利率為 41.6%，較去年同期上升 40 個基點。這一改善反映了 Blue Nile 的預期稀釋，這被我們核心業務的 100 個基點商品利潤率擴張和服務增長所抵消。

Sourcing is also a margin driver, as Gina mentioned earlier. We expect to capture nearly $20 million in sourcing savings in fiscal '24, reflecting the benefit of investments in our proprietary sourcing model. Core inventory was flat compared to last year, excluding acquisitions. Compared to pre-pandemic levels, inventory is down $485 million or 21%, and down 8% with acquisitions. Clearance and sell down are relatively flat compared to last year, and down 12% compared to pre-pandemic levels in our core banners.

正如 Gina 之前提到的，採購也是一個利潤驅動因素。我們預計在 24 財年將節省近 2000 萬美元的採購費用，這反映了投資我們專有採購模式的好處。核心庫存與去年持平，不包括收購。與大流行前的水平相比，存貨減少了 4.85 億美元或 21%，並因收購而減少了 8%。與去年相比，清倉和降價相對持平，與我們核心橫幅的大流行前水平相比下降了 12%。

Non-GAAP SG&A was approximately $695 million or 26% of sales, leveraging slightly year-over-year on a high single-digit negative comp, and leveraged 340 basis points compared to fiscal '20. This is due in part to incentive compensation, but is also a good example of the agility that is built into our operating system. We have a gated approach to spending and a flexible labor productivity model. This was effective in Q4 and throughout the year.

非美國通用會計準則 SG&A 約為 6.95 億美元，佔銷售額的 26%，在高個位數的負補償上同比略有增加，與 20 財年相比增加了 340 個基點。這部分是由於激勵性薪酬，但也是我們操作系統內置敏捷性的一個很好的例子。我們有一個封閉的支出方式和一個靈活的勞動生產率模型。這在第四季度和全年都有效。

In fiscal '23, we took $96 million of cost savings out of the operating model in anticipation of volatile market conditions and delivered leverage on a down 6.1% comp. This strategy is intentional. We are fueling investment in critical areas as we continue to strengthen our competitive advantages.

在 23 財年，我們因預期市場環境波動而從運營模式中節省了 9600 萬美元的成本，並在下降 6.1% 的情況下提供了槓桿作用。這個策略是有意的。隨著我們繼續加強我們的競爭優勢，我們正在加大對關鍵領域的投資。

Fourth quarter non-GAAP operating income of $405 million was slightly down from $411 million last year, and is a 15.2% margin, a 60 basis point improvement from last year. Non-GAAP operating income excluded $35.2 million in charges related to asset impairments and nonrecurring litigation, as well as acquisition and integration charges related to Blue Nile. Non-GAAP diluted EPS of $5.52 is up from $5.01 in Q4 of fiscal '22. For the year, non-GAAP diluted EPS of $11.80 was down from $12.28 in fiscal '22.

第四季度非 GAAP 營業收入為 4.05 億美元，略低於去年的 4.11 億美元，利潤率為 15.2%，比去年提高 60 個基點。非 GAAP 營業收入不包括與資產減值和非經常性訴訟相關的 3,520 萬美元費用，以及與 Blue Nile 相關的收購和整合費用。非 GAAP 稀釋每股收益為 5.52 美元，高於 22 財年第四季度的 5.01 美元。今年，非 GAAP 稀釋每股收益為 11.80 美元，低於 22 財年的 12.28 美元。

Turning to the balance sheet. We had another positive year with $659 million of free cash flow, resulting in $1.2 billion in cash on hand and $2.6 billion in overall liquidity at year-end. Further, we were able to maintain a strong DPO due to continued terms management. Our debt leverage ratio of 2x EBITDAR is down nearly half from pre-pandemic levels and well below our stated goal of 2.75x.

轉向資產負債表。我們又迎來了積極的一年，自由現金流為 6.59 億美元，年末手頭現金為 12 億美元，整體流動資金為 26 億美元。此外，由於持續的條款管理，我們能夠保持強大的 DPO。我們 2 倍 EBITDAR 的債務槓桿率比大流行前水平下降了近一半，遠低於我們設定的 2.75 倍目標。

Looking forward, we expect capital investments of up to $200 million for fiscal '24. Roughly half will go to investments in our fleet, with the balance being invested in digital and technology advancements, as well as other critical capabilities. We will focus on marketing transformation and personalized communication, next-gen automation and demand planning in our supply chain, and digital features that drive e-commerce conversion.

展望未來，我們預計 24 財年的資本投資將高達 2 億美元。大約一半將投資於我們的機隊，其餘投資於數字和技術進步，以及其他關鍵能力。我們將專注於營銷轉型和個性化溝通、供應鏈中的下一代自動化和需求規劃，以及推動電子商務轉化的數字功能。

There's one important point that I want to make regarding capital allocation. Our strong cash position and disciplined capital management enables us to generate free cash flow that funds critical investments even during a slower economy. This ensures that we'll have the capability we need to win with customers and to grow share as economic conditions improve. This is a meaningful advantage. We've created a cash generation engine that enables us to invest when others cannot. We will continue to invest and return cash to shareholders despite challenging market and economic conditions.

關於資本配置，我想強調一點。我們強大的現金狀況和嚴格的資本管理使我們能夠產生自由現金流，即使在經濟放緩的情況下也能為關鍵投資提供資金。這確保了我們將擁有贏得客戶所需的能力，並隨著經濟狀況的改善而擴大份額。這是一個有意義的優勢。我們已經創建了一個現金生成引擎，使我們能夠在其他人無法投資時進行投資。儘管市場和經濟形勢充滿挑戰，我們仍將繼續投資並向股東返還現金。

I'll turn to guidance shortly, but first, I want to talk about the ongoing potential we see in our services business. Services are a big piece of the jewelry ownership cycle and a key driver of lifetime value. Service customers are 78% more likely to return for a repeat purchase, and repeat service customers have a 3x higher spend than other customers. Every additional 1% of repeat services customers is worth $100 million in incremental revenue to Signet.

我很快就會轉向指導，但首先，我想談談我們在服務業務中看到的持續潛力。服務是珠寶擁有周期的重要組成部分，也是終身價值的關鍵驅動因素。服務客戶再次購買的可能性高出 78%，而重複服務客戶的支出是其他客戶的 3 倍。每增加 1% 的重複服務客戶，Signet 就可以增加 1 億美元的收入。

We've made meaningful progress in this business, growing revenue by roughly $150 million over the past 3 years. We are building awareness of our services offering by mobilizing and training our store teams, amplifying marketing and by bringing even sharper insights through data analytics into the role that services play in our customers' jewelry ownership experience. For instance, we've really come to understand how much anxiety some people have when they place a piece of jewelry that they treasure into the hands of someone else for repair. We've acted on that understanding by making that process much more transparent.

我們在這項業務中取得了有意義的進展，在過去 3 年中收入增加了大約 1.5 億美元。我們正在通過動員和培訓我們的商店團隊、擴大營銷以及通過數據分析為服務在我們客戶的珠寶擁有體驗中所扮演的角色帶來更敏銳的洞察力，來提高我們所提供服務的知名度。例如，我們真正了解到有些人在將自己珍愛的珠寶交給別人修理時會有多麼焦慮。我們通過使該過程更加透明來根據這種理解採取行動。

With online customer repair trackers, for example, customer usage of this tracker has increased by 29x since we expanded it across all banners. And we know that repair customers check the tracker 3x on average during the course of a repair. All of which are further opportunities to connect and communicate. We're also working with strategic partners on tracking technology innovation to increase transportation visibility throughout our network.

以在線客戶維修跟踪器為例，自從我們將其擴展到所有橫幅後，客戶對該跟踪器的使用率增加了 29 倍。我們知道，維修客戶在維修過程中平均檢查追踪器 3 次。所有這些都是進一步聯繫和交流的機會。我們還與戰略合作夥伴合作跟踪技術創新，以提高整個網絡的運輸可見性。

In addition, we know that our warranty program, our largest services business provides peace of mind for engagement rings, wedding bands and other sentimental pieces that customers think of as their forever jewelry. We are communicating peace of mind as a key benefit of repair, along with the quality of a repair itself.

此外，我們知道我們的保修計劃是我們最大的服務業務，可以讓訂婚戒指、結婚戒指和其他客戶認為是他們永遠的珠寶的感傷物品讓您高枕無憂。我們將安心作為維修的主要好處，以及維修本身的質量。

Another example is our Vault Rewards loyalty program. Loyalty members generate 55% higher average transaction rate than nonmembers, but that's not their only value. They are also enabling our personalization efforts. The Vault Rewards program enables us to identify and get to know our customers with increasing precision, who they are, how they like to shop with us, where we exceed their expectations and where we have opportunity.

另一個例子是我們的 Vault Rewards 忠誠度計劃。忠誠會員產生的平均交易率比非會員高 55%，但這並不是他們唯一的價值。它們還支持我們的個性化工作。 Vault Rewards 計劃使我們能夠更準確地識別和了解我們的客戶、他們是誰、他們喜歡在我們這裡購物的方式、我們超出他們期望的地方以及我們有機會的地方。

We've launched Vault Rewards in Jared, Kay and Zales, and already have roughly 2 million members. We expect to reach approximately 4 million Vault Rewards members by the end of fiscal '24, as we realize the full year effect of the Kay and Zales programs. In total, we expect the enhancements we're making across services will generate more than $100 million in incremental revenue this fiscal year. Putting us on track to build services into a billion dollar business within 2 years and to continue growing in a range of mid to high single digits.

我們已經在 Jared、Kay 和 Zales 推出了 Vault Rewards，並且已經擁有大約 200 萬會員。隨著我們意識到 Kay 和 Zales 計劃的全年影響，我們預計到 24 財年末將達到約 400 萬 Vault Rewards 會員。總的來說，我們預計我們在服務方面所做的改進將在本財年產生超過 1 億美元的增量收入。讓我們走上正軌，在 2 年內將服務打造成價值 10 億美元的企業，並繼續以中高個位數的速度增長。

Now let me discuss our full year guidance for fiscal '24. Guidance reflects top line performance that we believe will outpace the market, while also delivering an annual double-digit operating margin. We expect the U.S. jewelry industry to be down mid-single digits in fiscal '24. As Gina mentioned earlier, we expect headwinds to continue in engagement with recovery beginning later this year. In addition, with the slowing economy and continued inflationary pressures, we do not expect to see a rebound in the lower price point consumer, and we'll continue to manage our assortment and marketing accordingly.

現在讓我討論我們對 24 財年的全年指導。指導反映了我們認為將超過市場的最高業績，同時也提供了每年兩位數的營業利潤率。我們預計美國珠寶行業在 24 財年將出現中等個位數的下滑。正如 Gina 之前提到的，我們預計從今年晚些時候開始，逆風將繼續參與復蘇。此外，隨著經濟放緩和持續的通脹壓力，我們預計低價消費者不會出現反彈，我們將繼續相應地管理我們的品類和營銷。

With this in mind, we expect full year revenue in the range of $7.67 billion to $7.84 billion, and non-GAAP EBIT of $765 million to $800 million or 10.2% on the high end. This assumes over $100 million in cost savings, the completion of the Blue Nile integration in the third quarter, provisions for incentive compensation back to normalized levels, and benefits from investments and improved capabilities. We expect non-GAAP EPS in the range of $11.07 to $11.59 which includes share repurchase activity through March 15.

考慮到這一點，我們預計全年收入在 76.7 億美元至 78.4 億美元之間，非 GAAP 息稅前利潤在 7.65 億美元至 8 億美元之間，即高端的 10.2%。這假設成本節省超過 1 億美元，第三季度完成 Blue Nile 整合，激勵補償準備回到正常水平，以及投資和能力提高帶來的收益。我們預計非 GAAP 每股收益在 11.07 美元至 11.59 美元之間，其中包括截至 3 月 15 日的股票回購活動。

As a reminder, our EPS guidance does not include the impact of further share repurchase activity, tax discrete items and any changes in current tax laws. It also lag of roughly 100 basis points of deleverage related to rent expense, with a similar level of impact on SG&A from investment spending and our digitally native banners.

提醒一下，我們的 EPS 指南不包括進一步的股票回購活動、稅收離散項目和現行稅法的任何變化的影響。它還落後於與租金支出相關的大約 100 個基點的去槓桿化，投資支出和我們的數字原生橫幅廣告對 SG&A 的影響程度相似。

Our digitally native banners, James Allen and Blue Nile will remain a margin headwind until Q3, when we expect meaningful accretion from this business. The underlying point here is that we believe we are poised to continue growing market share. And cementing our competitive advantages because our strategies and operating model are working precisely as we designed them to do. We're delivering consistently in a range of environments because we are able to leverage our capabilities and flexibility to adjust as market conditions require.

我們的數字原生橫幅廣告 James Allen 和 Blue Nile 將在第三季度之前保持利潤逆風，屆時我們預計該業務將實現有意義的增長。這裡的根本要點是，我們相信我們已準備好繼續擴大市場份額。並鞏固我們的競爭優勢，因為我們的戰略和運營模式正在按照我們設計的方式發揮作用。我們能夠在各種環境中始終如一地提供服務，因為我們能夠利用我們的能力和靈活性根據市場條件進行調整。

I want to thank our Signet team for delivering on our commitments despite a highly challenging environment. I'm very proud to work by their side. With that, we're happy to take your questions.

我要感謝我們的 Signet 團隊在極具挑戰性的環境中兌現了我們的承諾。我很自豪能在他們身邊工作。有了這個，我們很樂意回答您的問題。

(Operator Instructions) Our first question for today comes from Lorraine Hutchinson from Bank of America.

（操作員說明）我們今天的第一個問題來自美國銀行的 Lorraine Hutchinson。

I just wanted to understand the cadence of the guidance. It looks like a tougher first quarter and the Mother's Day shift commentary was helpful. But with a nice recovery as we move through the year in both sales and margins. So can you talk about some of the factors at play in the guidance that would get you there?

我只是想了解指導的節奏。第一季度看起來更艱難，母親節輪班評論很有幫助。但是隨著我們在銷售和利潤方面度過這一年，我們有了很好的複蘇。那麼，您能否談談指導中發揮作用的一些因素，這些因素會讓您到達那裡？

Yes. Thanks, Lorraine, for the question. As we mentioned, we saw in the -- for the Q1 guidance, we're assuming the trend in bridal for Q4 continues. As well as the wrap effect of stimulus, which we estimate to be 2 to 3 points in the quarter. And Mother's Day selling shift really meaning the build of Mother's Day selling moves more into the second quarter. And that's roughly a 3-point impact. And then just to pull -- wrapping all of that, last quarter -- last year for the first quarter, was at an 8.9% high mark for last year. That sums up the impact for Q1.

是的。謝謝，洛林，這個問題。正如我們所提到的，我們在第一季度的指導中看到，我們假設第四季度的婚禮趨勢繼續下去。以及刺激的包裹效應，我們估計該季度的包裹效應為 2 至 3 個百分點。而母親節銷售轉移實際上意味著母親節銷售的建立更多地進入了第二季度。這大約是 3 點的影響。然後只是拉動 - 總結所有這些，上個季度 - 去年第一季度，去年的高點為 8.9%。這總結了第一季度的影響。

If we look at the way that we think about the full year revenue guidance, we expect bridal headwinds to begin to moderate later in the year. Gina mentioned, a more towards holiday period, which is the peak period for bridal and engagement is when we begin to see recovery. So that's a critical point to consider as you're thinking about the year.

如果我們審視我們對全年收入指引的思考方式，我們預計婚禮逆風將在今年晚些時候開始緩和。吉娜提到，更接近假期，這是婚禮和訂婚的高峰期，也是我們開始看到復甦的時候。因此，這是您在考慮這一年時要考慮的關鍵點。

Services as well is a key component for us, as we look throughout the balance of the year. As we wrap services impact for bundles as well as our warranty programs, which we've added additional designs to that program, which will serve as a non-comp opportunity for us. So as we look to the year, bridal, just to summarize, bridal base towards the fourth quarter. We expect to see -- we're anticipating -- we're anniversaring a high comp in the prior year in the first quarter and the shift of the Mother's Day. So second quarter should see an improvement and then continue to drive that throughout the year.

服務對我們來說也是一個關鍵組成部分，因為我們在今年餘下的時間裡都會看到這一點。當我們包裝服務對捆綁包的影響以及我們的保修計劃時，我們已經為該計劃添加了額外的設計，這將成為我們的非補償機會。因此，當我們展望這一年時，新娘，只是總結一下，第四季度的新娘基地。我們希望看到——我們正在期待——我們將在第一季度和母親節的轉變中實現上一年的高業績。因此，第二季度應該會有所改善，然後在全年繼續推動這種情況。

And then how much pressure will you face with the rebuild of incentive comp? And how should we think about SG&A as we move through the year?

那麼重建激勵機制會面臨多大的壓力？在這一年中，我們應該如何考慮 SG&A？

Yes. What I said in my remarks is that there's -- we had pressure in the full year restoring incentive compensation throughout the year, not only for support center, but also for our field teams as against this performance that we're forecasting. So without -- we're just positioning it to return to normalized levels. Another thing to think about there is we have $100 million of cost savings that we've included in our guidance. And that's helping us to offset some of that incentive compensation, as well as the ramp of investments and the continued investments that I mentioned in my remarks throughout the year.

是的。我在發言中所說的是 - 我們在全年都面臨恢復激勵薪酬的壓力，不僅針對支持中心，而且針對我們的現場團隊，這與我們預測的這種表現不同。因此，沒有 - 我們只是將其定位為返回正常水平。另一件需要考慮的事情是，我們已經在我們的指導中節省了 1 億美元的成本。這有助於我們抵消部分激勵性薪酬，以及我在全年發言中提到的投資增長和持續投資。

So cost savings, as you've seen in our history, we've saved over $500 million of costs when you look back over time. And this is how we've been able to fund the investments and manage some of the ups and downs in the SG&A line. And then just as a reminder, the Blue Nile integration is expected to be completed by the third quarter. And when that's fully integrated, we expect to be able to get the benefit of the synergies that we signed in our acquisition model. So -- and we're optimistic about that.

所以節省成本，正如你在我們的歷史中看到的那樣，當你回顧過去時，我們已經節省了超過 5 億美元的成本。這就是我們能夠為投資提供資金並管理 SG&A 系列中的一些起伏的方式。然後提醒一下，Blue Nile 整合預計將在第三季度完成。當它完全整合時，我們希望能夠從我們在收購模型中籤署的協同效應中獲益。所以 - 我們對此持樂觀態度。

Our next question for today comes from Ike Boruchow from Wells Fargo.

我們今天的下一個問題來自富國銀行的 Ike Boruchow。

A couple of questions. Gina, just a clarification from you. I think you said earlier on the call, you expect the engagement trends, which you gave us a lot of color on to inflect in late 2024. Was that fiscal year '24, meaning later this year? Or are you talking about calendar '24 when you made those comments about the industry.

幾個問題。吉娜，只是你的澄清。我想你早些時候在電話會議上說過，你期待參與趨勢，你給了我們很多顏色，以便在 2024 年末發生變化。那個財政年度是 24 年，意思是今年晚些時候嗎？或者當您對行業發表這些評論時，您是在談論日曆'24。

Yes, all fiscal year are related. So we expect this to be the trough of the year of engagements. They were down low double digits in our fiscal '23. So last year, calendar '22, we expect them to be down low double digits again in our fiscal '24 but begin to moderate toward the end of this year. And then we'll see an uptick in our fiscal '25 with a return to normal levels of engagements by FY '26. So this is really the -- is an important part of our strategy and why we're continuing to invest, so that we're ready to be able to take full advantage of those inflection points.

是的，所有財政年度都是相關的。因此，我們預計這將是訂婚年的低谷。他們在我們的 23 財年下降了兩位數。因此，去年，日曆'22，我們預計他們將在我們的'24財政年度再次下降兩位數，但在今年年底開始放緩。然後我們將看到我們的 25 財年有所上升，到 26 財年恢復到正常的參與水平。所以這真的是——是我們戰略的重要組成部分，也是我們繼續投資的原因，這樣我們就可以充分利用這些拐點。

And should we assume that the organic comps in the business likely remain negative up until the point of that category inflecting back positively?

我們是否應該假設業務中的有機組合可能會保持負值，直到該類別出現正向轉折點？

Yes. I mean remember, bridal represents roughly 50% of our business. We love that. It's a great business to be in. And absent COVID it's a very steady business to be in. It's the point of market entry, creates relationships, lifetime value, the potential for services, all of that, but we're just seeing a temporary blip from COVID.

是的。我的意思是請記住，婚禮約占我們業務的 50%。我們喜歡那個。這是一項偉大的業務。沒有 COVID，這是一項非常穩定的業務。這是市場進入點，創造關係，終生價值，服務潛力，所有這些，但我們只是看到暫時的來自 COVID 的信號。

And then just one last one for Joan. Just on the accretion of Nile, I think you mentioned that it should inflect pretty meaningfully in the third quarter. Can you just give us maybe a little bit more detail? What exactly is driving that? What are the synergies that you're expecting? And if there's any way you could share what kind of revenue or EBIT or margin you're planning for Nile this year that might help us.

然後是瓊的最後一張。關於尼羅河的增長，我想你提到它應該在第三季度出現非常有意義的變化。你能給我們更多的細節嗎？究竟是什麼驅動了它？您期望的協同效應是什麼？如果您有任何方式可以分享您今年為尼羅河計劃的收入或息稅前利潤或利潤率，這可能會對我們有所幫助。

For the synergies, when you think about replatforming the business, you're taking overhead out as we integrate it into the James Allen platform. So that's the biggest piece of the synergies that we see. That's been creating cost savings for us as well as we see the opportunity for continued margin expansion within gross margin as we refine the assortment and integrate into Signet's buying practices, would be the 2 key points that I would call out for you, Ike.

對於協同效應，當你考慮重新構建業務平台時，你會在我們將其集成到 James Allen 平台時減少開銷。所以這是我們看到的最大的協同作用。這一直在為我們節省成本，而且我們看到了在我們改進產品組合併融入 Signet 的購買實踐時毛利率持續擴大的機會，這將是我要為你指出的兩個關鍵點，艾克。

(Operator Instructions) Our next question comes from Jim Sanderson of Northcoast Research.

（操作員說明）我們的下一個問題來自 Northcoast Research 的 Jim Sanderson。

I just wanted to follow up on Blue Nile a little bit. How do you look at the actual sales retention post acquisition? I think at one point, the Blue Nile was generating about $560 million in revenue. I'm just looking at the difference in fourth quarter revenue growth and comp growth, and that differential suggests to me that you're capturing about 60% to 70% of that level. Is that the right way to look at that? And is there any reason why that asset lost sales over the past couple of years?

我只是想跟進一下 Blue Nile。您如何看待收購後的實際銷售保留率？我認為 Blue Nile 曾經創造了大約 5.6 億美元的收入。我只是在看第四季度收入增長和 comp 增長的差異，這種差異對我來說表明你獲得了該水平的 60% 到 70%。這是看待它的正確方法嗎？在過去的幾年裡，該資產的銷量下降有什麼原因嗎？

So we think of Blue aisle on the top line, we really are thinking about Blue Nile and James Allen as a combined entity of digitally native banners. And as we're working through, Jim, that integration and balancing lab-created diamonds, fine jewelry, fashion jewelry along with bridal jewelry. We are continuing to refine the assortment and continuing to understand the differences and the opportunities as we look at the 2 commercial banners. So we will continue to navigate that. We find it as we go through FY '24. And certainly, we are believing in the optimization of the 2 banners together are stronger than individually, as we optimize the back end of the operation as well.

因此，我們將 Blue aisle 放在首位，我們確實將 Blue Nile 和 James Allen 視為數字原生橫幅廣告的組合實體。吉姆，我們正在努力整合和平衡實驗室製造的鑽石、高級珠寶、時尚珠寶以及新娘珠寶。我們將繼續完善分類，並繼續了解這兩個商業橫幅的差異和機會。所以我們將繼續導航。我們在經歷 24 財年時發現了它。當然，我們相信 2 個橫幅的優化一起比單獨優化更強大，因為我們也優化了操作的後端。

And just a quick follow-up on margin contribution for Blue Nile. Combined, should we expect the segment EBIT margin to be contribute to a stronger EBIT margin in 2024? That's if you take into account the overhead synergies and gross profit margin, that might be a little bit weaker.

并快速跟進 Blue Nile 的保證金貢獻。綜合起來，我們是否應該期望該部門的息稅前利潤率在 2024 年有助於提高息稅前利潤率？如果你考慮到間接費用協同效應和毛利率，那可能會弱一些。

Yes. Well, what I said in the guidance, Jim, is that yes, the first half will continue to feel the pressure, roughly 100 basis points related to the impact of the digitally native banners. And that will then begin to moderate as we move through the back half of the year (inaudible) the full integration.

是的。好吧，吉姆，我在指南中所說的是，上半年將繼續感受到壓力，大約 100 個基點與數字原生橫幅的影響有關。然後，隨著我們在今年下半年（聽不清）全面整合，這種情況將開始緩和。

I just wanted one last quick question on store count. I think that you had a slight decline in international. Is your square footage in 2024 relatively stable? Or how do we look at that on a year-over-year basis?

我只想問一個關於商店數量的最後一個快速問題。我認為你在國際上略有下降。您在 2024 年的建築面積是否相對穩定？或者我們如何逐年看待這一點？

Well, we're opening and closing stores. So I would say, yes, relatively stable based on how we're seeing the business today.

好吧，我們正在開店和關店。所以我會說，是的，根據我們今天對業務的看法，相對穩定。

We currently have no further questions. So I'll hand back to the speaker team for any further remarks.

我們目前沒有進一步的問題。因此，我將交還給發言人團隊以徵求任何進一步的意見。

Yes. Thank you, everyone. Our key message today is simple and clear. We delivered in fiscal '23, and we believe we'll do it again this year for all the reasons that we've outlined today. Signet is a transformed company with sustainable and growing competitive advantages. And our financial strength allows us to continue smartly investing to widen those advantages, to grow market share, while consistently returning meaningful value to our shareholders. We're eager to go deeper into the ways we've transformed our business and organization.

是的。謝謝大家。我們今天的關鍵信息簡單明了。我們在 23 財年交付，我們相信今年我們會出於今天概述的所有原因再次這樣做。 Signet 是一家轉型後的公司，具有可持續且不斷增長的競爭優勢。我們的財務實力使我們能夠繼續明智地投資以擴大這些優勢，增加市場份額，同時持續為我們的股東回報有意義的價值。我們渴望更深入地了解我們改變業務和組織的方式。

So with that in mind, I'm pleased to invite you to join us at the New York Stock Exchange for our next Investor Day on April 18. I'll be joined by Joan, Jamie and several other Signet lead team members to take you through our strategies and capabilities. And many others will be on hand to meet and talk with you as well.

因此，考慮到這一點，我很高興邀請您參加 4 月 18 日在紐約證券交易所舉行的下一個投資者日。我將與 Joan、Jamie 和其他幾位 Signet 領導團隊成員一起帶您通過我們的戰略和能力。許多其他人也將在現場與您會面和交談。

As we continue through fiscal '24 and beyond, we remain focused on our priorities, growing share, delivering double-digit EBIT margin and maintaining our disciplined capital allocation to invest in our business, and deliver enhanced shareholder return. Thank you.

隨著我們在 24 財年及以後的持續發展，我們將繼續專注於我們的優先事項，增加份額，實現兩位數的息稅前利潤率，並保持我們嚴格的資本分配以投資於我們的業務，並提供更高的股東回報。謝謝。

Thank you for joining today's call. You may now disconnect your lines.

感謝您參加今天的電話會議。您現在可以斷開線路。