Signet Jewelers Ltd (SIG) 2024 Q1 法說會逐字稿

Hello, everyone, and welcome to the Signet Jewelers Q1 Earnings Call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)

大家好，歡迎參加 Signet Jewelers 第一季度收益電話會議。我叫艾米麗，今天我將協調您的電話。 （操作員說明）

I will now turn the call over to our host, Rob Ballew.

現在我將把電話轉給我們的主持人 Rob Ballew。

Good morning. Welcome to Signet Jewelers first 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。歡迎參加 Signet Jewelers 第一季度收益電話會議。今天參加電話會議的是 Signet 的首席執行官 Gina Drosos；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. Actual results may differ materially. We urge you to read the risk factors, cautionary language and other disclosures 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。任何不屬於歷史事實的陳述都會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。我們強烈建議您閱讀我們的年度報告（表格 10-K）、季度報告（表格 10-Q）和當前報告（表格 8-K）中的風險因素、警示性語言和其他披露內容。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 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，我們將討論某些非公認會計準則財務指標。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 指標的調節，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.

這樣，我就把電話轉給吉娜。

Thank you, Rob. We're happy to have you joining your first Signet earnings call today and appreciate the extensive experience you bring, and thanks to all of you for joining us today.

謝謝你，羅布。我們很高興您今天參加第一次 Signet 財報電話會議，感謝您帶來的豐富經驗，並感謝大家今天加入我們。

Before getting into our prepared remarks, I want to thank our Signet team. Our company continues to be recognized as a great place to work because of the outstanding people we work alongside. In a pressured quarter, we delivered on our commitments, thanks to their agility and excellent customer service. I'm proud to lead this team.

在開始我們準備好的發言之前，我要感謝我們的 Signet 團隊。由於與我們一起工作的優秀員工，我們的公司繼續被認為是一個理想的工作場所。在充滿壓力的季度，我們兌現了我們的承諾，這要歸功於他們的敏捷性和卓越的客戶服務。我很自豪能夠領導這個團隊。

There are 3 key messages I'd like to reinforce in my remarks today. First, we achieved our revenue and bottom line commitments in Q1 despite macro economic headwinds that worsened late in the quarter. Additionally, as we predicted, there were fewer engagements in the quarter resulting from COVID's disruption of dating 3 years ago. Given softening trends in late April, we've leveraged high margin innovation in services and fashion as well as strategic promotions to quickly respond to competitive pressures. These results reflect the agility we've built in our team and our flexible operating model.

我想在今天的講話中強調三個關鍵信息。首先，儘管宏觀經濟逆風在本季度末惡化，但我們在第一季度實現了收入和利潤承諾。此外，正如我們預測的那樣，由於 3 年前新冠疫情對約會的干擾，本季度的互動量有所減少。鑑於 4 月下旬趨勢疲軟，我們利用服務和時尚領域的高利潤創新以及戰略促銷來快速應對競爭壓力。這些結果反映了我們團隊的敏捷性和靈活的運營模式。

Second, we are adjusting our guidance for the year, reflecting current market conditions, lowering revenue expectations based on increasing macro pressure on consumer spending. On the bottom line, our operating model continues to deliver at a double-digit annual rate. However, we are intentionally choosing to invest in the capabilities that we believe are creating sustainable competitive advantages and driving market share growth to expand the moat around our business. We have the advantage of having built a fortress balance sheet that fuels our ability to invest in a period of disruption, which we believe gives us significant competitive advantage.

其次，我們正在調整今年的指引，以反映當前的市場狀況，根據消費者支出宏觀壓力的加大，降低收入預期。總而言之，我們的運營模式繼續以兩位數的年增長率交付。然而，我們有意選擇投資於我們認為能夠創造可持續競爭優勢並推動市場份額增長的能力，以擴大我們業務的護城河。我們的優勢在於建立了堡壘式的資產負債表，增強了我們在顛覆時期的投資能力，我們相信這給我們帶來了顯著的競爭優勢。

Third, we remain confident in our mid-term goals that we outlined at our April Investor Day. In fact, our proprietary consumer insights give us increased confidence that engagements will begin to recover at the end of fiscal '24 and we're positioning ourselves to accelerate market share growth.

第三，我們對四月份投資者日概述的中期目標仍然充滿信心。事實上，我們專有的消費者洞察讓我們更有信心，我們的業務量將在 24 財年末開始恢復，並且我們正在定位自己以加速市場份額的增長。

Turning to the quarter. We delivered nearly $1.7 billion in sales and more than $106 million in non-GAAP operating income, both at the high end of our guidance. We achieved this despite 50% of our business being in bridal, which we expected to decline and in an environment that deteriorated late in the quarter, which we've seen continue in the second quarter. The swing factors in recent consumer confidence, lower tax refunds, economic concerns triggered by regional bank failures and continued inflation led to a weakening trend in spending across the jewelry industry of an additional 10 points that we estimate based on external reports.

轉向季度。我們實現了近 17 億美元的銷售額和超過 1.06 億美元的非 GAAP 營業收入，均處於我們指導的上限。儘管我們 50% 的業務是婚紗業務，但我們還是實現了這一目標，我們預計這一業務將會下降，並且在本季度末環境惡化的情況下，我們預計這種情況將在第二季度繼續惡化。近期消費者信心、退稅減少、地區銀行倒閉引發的經濟擔憂以及持續的通貨膨脹等波動因素導致整個珠寶行業的支出進一步減弱 10 個百分點（我們根據外部報告估計）。

Bridal and macro economic conditions were 2 important drivers in the quarter, so I'll comment on both of them. We expected the low-double-digit decline in engagement that we saw this quarter. Similar to the fourth quarter, we expected to see units decline, but we also expect a growth in average transaction value, which did not materialize. This reflects the accelerated macro pressures on spending as well as a heightened promotional environment, those factors that we expect to continue. We believe we are growing market share in bridal in this environment.

婚禮和宏觀經濟狀況是本季度的兩個重要驅動因素，因此我將對兩者進行評論。我們預計本季度的參與度將出現兩位數的低位下降。與第四季度類似，我們預計單位數量會下降，但我們也預計平均交易價值會增長，但這並沒有實現。這反映了宏觀支出壓力的加速以及促銷環境的加強，我們預計這些因素將持續下去。我們相信，在這種環境下，我們的婚紗市場份額將會不斷增長。

In fashion, we continue to see pressure at lower price points as has been the case for the past year. However, later in the quarter, we began to see degradation at higher price points between $1,000 and $5,000 in fashion. Price points remained strong at $5,000 and above. This price erosion continued into the second quarter. Nonetheless, our intentional focus on building out our fashion category over the last 3 years, which has grown 36% in that time to become a bigger portion of our mix has positioned us to gain market share and is having the positive impact we designed for in this current environment.

在時尚領域，我們繼續看到價格較低的壓力，就像去年的情況一樣。然而，在本季度晚些時候，我們開始看到時尚產品在 1,000 美元至 5,000 美元之間的較高價格點出現退化。價格點仍然堅挺在 5,000 美元及以上。這種價格侵蝕持續到第二季​​度。儘管如此，我們在過去 3 年裡有意專注於打造我們的時尚品類，當時時尚品類增長了 36%，在我們的產品組合中佔據了更大的比例，這使我們能夠獲得市場份額，並產生了我們設計的積極影響。目前的這個環境。

I'll talk more about our guidance update shortly, but I want to first look at the value of the investments we've made to differentiate Signet from competitors and position us to gain market share. In particular, our banner portfolio, our services business and our digital and data capabilities, all of which were important strengths in Q1. Our broad portfolio of banners is working as it is designed to do. As we've repositioned it, Jared is a good example. Jared now represents an important mezzanine between fine jewelry and luxury jewelry.

我很快就會詳細討論我們的指導更新，但我想首先看看我們為使 Signet 與競爭對手區分開來並使我們獲得市場份額而進行的投資的價值。特別是我們的橫幅產品組合、我們的服務業務以及我們的數字和數據能力，所有這些都是第一季度的重要優勢。我們廣泛的橫幅產品組合正在按其設計目的發揮作用。正如我們重新定位的那樣，賈里德就是一個很好的例子。 Jared 現在代表著高級珠寶和奢華珠寶之間的重要夾層。

In each of the last 9 quarters, Jared has increased average transaction value versus previous year by providing the higher quality metals, elegant cuts and exclusive brands that Jared customers want, and we're piloting a preferred assortment in select stores that has driven a 600 basis point improvement in sales versus the balance of the fleet and a 1,500 basis point improvement to average ticket sales. We expect to roll it out more broadly in the months ahead.

在過去 9 個季度中，Jared 通過提供 Jared 客戶想要的更高質量的金屬、優雅的切割和獨家品牌，平均交易價值比去年有所增加，我們正在精選商店中試行首選品種，該品種已吸引了 600 名顧客與其餘機隊相比，銷售額提高了一個基點，平均機票銷售額提高了 1,500 個基點。我們預計在未來幾個月內更廣泛地推出它。

The value and potential of our services business continues to be evident. Services grew more than 5% compared to this time last year, reflecting the notable progress across our services offerings. A key driver was our extended service agreements or ESAs. The attachment rate for ESAs increased more than 2 points, exiting the quarter with higher velocity. This is a particularly impressive result since our highest attachment is typically in bridal.

我們服務業務的價值和潛力仍然顯而易見。與去年同期相比，服務增長了 5% 以上，反映出我們的服務產品取得了顯著進步。一個關鍵的驅動因素是我們的擴展服務協議或 ESA。 ESA 的附著率增加了 2 個百分點以上，以更高的速度退出本季度。這是一個特別令人印象深刻的結果，因為我們最高的依戀通常是在婚禮上。

Custom is another good example. We expect a custom to decline in the quarter at a similar rate to merchandise sales, yet this growing service bucked the trend, increasing penetration and contributing to core margin expansion. We've been building our services offerings based on deep consumer research and it's working. The improvements we've made in custom and repair drove a service margin increase of 340 basis points compared to the prior year.

定制是另一個很好的例子。我們預計本季度定制服務的下降速度與商品銷售的速度相似，但這種不斷增長的服務卻逆勢而上，提高了滲透率，並有助於核心利潤率的擴張。我們一直在基於深入的消費者研究來構建我們的服務產品，並且它正在發揮作用。我們在定制和維修方面所做的改進使服務利潤率比上一年增加了 340 個基點。

Our loyalty program is demonstrating meaningful growth as well. We recently introduced the option to enroll in our loyalty program when first creating an account on one of our banner sites, creating a frictionless point of entry for our customers. This enhancement has enabled a more than 50% increase in members in the quarter. This matters because our loyalty members are more frequent purchasers and have a 20% higher spend than non-loyalty members.

我們的忠誠度計劃也呈現出有意義的增長。最近，我們推出了在我們的一個橫幅網站上首次創建帳戶時註冊忠誠度計劃的選項，為我們的客戶創建了一個無摩擦的進入點。這一增強功能使本季度會員數量增加了 50% 以上。這很重要，因為我們的忠誠會員購買頻率更高，並且比非忠誠會員的支出高出 20%。

These examples represent continued progress toward our mid-term goal of $1.2 billion in service business revenue as well as an important step change in the way services perform as a category. Historically, services revenue has trended alongside merchandise, often impacted by the same drivers. This quarter, services is a standout category and a clear reflection of our investments. We've changed the trajectory of this part of our business through ESA product differentiation, increased digital access and visibility and increased training.

這些例子代表了我們在實現服務業務收入 12 億美元的中期目標方面的持續進展，以及服務作為一個類別的表現方式的重要一步變化。從歷史上看，服務收入與商品收入趨勢一致，通常受到相同驅動因素的影響。本季度，服務是一個突出的類別，清楚地反映了我們的投資。通過 ESA 產品差異化、增加數字訪問和可見性以及增加培訓，我們改變了這部分業務的發展軌跡。

The final strength I'd like to highlight is the value of our digital and data analytics capabilities. Our investments in digital continue to be a differentiator and a bright spot for us in the current environment, increasing penetration in the quarter. We believe that's both an indication of the macro environment where consumers are browsing and researching more before they buy and also the investments we've made to create a great customer experience.

我想強調的最後一個優勢是我們的數字和數據分析能力的價值。在當前環境下，我們對數字化的投資仍然是我們的優勢和亮點，本季度的滲透率不斷提高。我們相信，這既表明了消費者在購買前進行更多瀏覽和研究的宏觀環境，也表明了我們為創造良好的客戶體驗而進行的投資。

Our digital Net Promoter Score or NPS, is now at an all-time high, having grown 3 points over the last quarter and 9 points compared to this time last year and 96% of promoters say they will shop with us again. As consumer expectations continue to increase, we are updating our digital experience, meeting customers how and where they want to shop with us at a scale that's hard to match. We implemented more than a dozen new priority feature launches this quarter and we're on track for an additional 20 in the second quarter. These features include enhancements to online merchandise presentation, messaging, appointment bookings and services. With these and future improvements to come, we are sharply focused on customer delight and increased conversion.

我們的數字淨推薦值（NPS）目前處於歷史最高水平，比上個季度增長了 3 個點，與去年同期相比增長了 9 個點，96% 的促銷者表示他們將再次在我們這裡購物。隨著消費者期望的不斷提高，我們正在更新我們的數字體驗，以難以匹敵的規模滿足客戶希望如何以及在哪裡購物。本季度我們推出了十多項新的優先功能，並有望在第二季度再推出 20 項。這些功能包括在線商品展示、消息傳遞、預約和服務的增強。隨著這些以及未來的改進，我們將重點關注客戶滿意度和提高轉化率。

Beyond digital, our proprietary data and ability to mine it for insights is a significant source of competitive advantage. We see its value in bridal, for example. As we mentioned at our Investor Day, we have identified and tracked a proprietary list of 45 milestones that trace a couple's journey through 4 major relationship stages; meeting, exclusivity, committed and engagement.

除了數字化之外，我們的專有數據和挖掘洞察的能力也是競爭優勢的重要來源。例如，我們看到了它在婚禮上的價值。正如我們在投資者日提到的，我們已經確定並跟踪了一份包含 45 個里程碑的專有列表，這些里程碑追踪了夫妻關係的 4 個主要階段：會議、排他性、承諾和參與。

What our data has shown is that once couples experience at least 27 of these milestones, it becomes highly likely that they will move to engagement. For example, couples traveling together is one of the top milestones later in the couple's journey to engagement. We see evidence of this milestone currently across our data sources, including online search activity. Searches for couple vacation on TikTok are currently twice what they were in Q4. Google searches for travel or vacation together are up more than 30%. In fact, multiple data sources that we track for other key proprietary indicators are also up significantly. The key point is that we're seeing the engagement milestones occurring as expected, which reinforces our confidence that engagements will begin to recover as we approach the end of the year. We are investing to win as this unfolds.

我們的數據顯示，一旦夫妻經歷了至少 27 個這樣的里程碑，他們就很有可能轉向訂婚。例如，情侶一起旅行是情侶訂婚之旅中最重要的里程碑之一。我們目前在我們的數據源（包括在線搜索活動）中看到了這一里程碑的證據。目前，TikTok 上情侶度假的搜索量是第四季度的兩倍。 Google 上關於旅行或度假的搜索量合計增長了 30% 以上。事實上，我們跟踪的其他關鍵專有指標的多個數據源也顯著上升。關鍵是，我們看到參與度里程碑如期發生，這增強了我們的信心，即隨著年底的臨近，參與度將開始恢復。隨著事態的發展，我們正在投資以取得勝利。

Personalized marketing is another example of our data capabilities. Our marketing efficiency and effectiveness continue to improve as we personalize our approach, including a 9% increase to our return on ad spend in the first quarter with advertising as a percent of sales flat compared to this time last year. Our customer data platform, which enables our personalized journeys is still relatively new in implementation. That said, we've already built nearly 30 million customer profiles and the platform is configured to activate across channels like email, SMS texting, web and social.

個性化營銷是我們數據能力的另一個例子。隨著我們個性化我們的方法，我們的營銷效率和效果不斷提高，包括第一季度的廣告支出回報率增加了 9%，廣告佔銷售額的百分比與去年同期持平。我們的客戶數據平台支持我們的個性化旅程，在實施方面仍然相對較新。也就是說，我們已經建立了近 3000 萬個客戶資料，並且該平台配置為跨電子郵件、短信、網絡和社交等渠道激活。

I want to put this into perspective for you. We estimate those 30 million customer profiles represent roughly 40% of the U.S. jewelry customers who make a purchase in a given year. And we've been adding over 1 million new profiles every month. The marriage of these 2 things, our proprietary consumer insights and our leading customer data platform is a powerful combination that doesn't exist at our scale anywhere else in the North America jewelry industry.

我想為您闡述這一點。我們估計，這 3000 萬客戶資料約佔特定年份購買珠寶的美國客戶的 40%。我們每個月都會添加超過 100 萬個新個人資料。我們專有的消費者洞察和領先的客戶數據平台這兩件事的結合是一個強大的組合，在北美珠寶行業的其他任何地方都不存在這種規模的組合。

Our unique consumer insight capability enables us to see and understand pre-engagement couples as they make progress through their relationships toward engagement. And our personalization capability enables us to interact with them at important steps, increasing the likelihood that they'll come to us when they're ready to get engaged. This also generates insights into all the milestone moments that come later in their lives and enables us to build lifetime relationships with them. This integrated approach to our insights and customer data is at the heart of our transformation and our long-term growth potential. We will continue to invest behind it as we get better and better every year.

我們獨特的消費者洞察能力使我們能夠看到並了解訂婚前的情侶在訂婚關係中取得的進展。我們的個性化功能使我們能夠在重要步驟與他們互動，增加他們在準備好參與時來找我們的可能性。這也讓我們深入了解他們以後生活中的所有里程碑時刻，並使我們能夠與他們建立終生的關係。這種對我們的見解和客戶數據的綜合方法是我們轉型和長期增長潛力的核心。隨著我們每年變得越來越好，我們將繼續對其進行投資。

One final example of how we're leveraging data is the way we're driving out product costs without compromising quality and innovation. A recent example is a sourcing technology that we've activated, which we call The Loupe. This is a leading sourcing system that allows us to benchmark standardized component costs, establish should cost pricing model and create transparency and cost negotiations across our network, lowering costs and matching product demand and supply needs with the right vendors across all our banners. We're early in our implementation, but already in Q1, we estimate that we avoided mid-single-digit cost increases to [loose stones]. Based on our early success, we are now doubling our expectation of savings from $20 million to $40 million this year and believe we can ultimately save up to $200 million annually over time. This level of cost transparency gives us a clear competitive advantage, particularly with current macro headwinds.

我們如何利用數據的最後一個例子是我們在不影響質量和創新的情況下降低產品成本的方式。最近的一個例子是我們激活的採購技術，我們稱之為 The Loupe。這是一個領先的採購系統，使我們能夠對標準化組件成本進行基準測試，建立成本定價模型，並在我們的網絡中建立透明度和成本談判，從而降低成本並與我們所有旗下的正確供應商匹配產品需求和供應需求。我們還處於實施的早期階段，但在第一季度，我們估計我們避免了[鬆散石頭]的中個位數成本增加。基於我們早期的成功，我們現在將今年的節省預期從 2000 萬美元增加了一倍至 4000 萬美元，並相信隨著時間的推移，我們最終每年可以節省高達 2 億美元。這種成本透明度為我們帶來了明顯的競爭優勢，特別是在當前的宏觀不利因素下。

The point of these examples is to underscore that the investments we've made and continue to make to strengthen critical capabilities and create competitive advantages are working. Our financial strength allows us to keep investing to widen the moat around our business and position Signet for ongoing market share gains.

這些例子的目的是強調我們已經和繼續進行的用於增強關鍵能力和創造競爭優勢的投資正在發揮作用。我們的財務實力使我們能夠繼續投資，以擴大我們的業務護城河，並為 Signet 贏得持續的市場份額增長。

I'll touch briefly now on our guidance update. As a result of the deteriorating macro environment and impact on consumer spending patterns we saw late in Q1 and throughout May, we are revising guidance to reflect continuation of these trends for the balance of the year. We have updated our forecast to account for a lower range of top-line outcomes and now expect revenue for the year to be between $7.1 billion to $7.3 billion. Based on sales data in May and June for the industry, we believe this guide positions us to grow market share as current trends are pointing to a larger decline across the industry.

我現在將簡要介紹一下我們的指導更新。由於宏觀環境惡化以及我們在第一季度末和整個 5 月份看到的消費者支出模式受到的影響，我們正在修訂指導意見，以反映這些趨勢在今年餘下時間的延續。我們更新了預測，以考慮較低範圍的營收結果，現在預計今年的收入將在 71 億美元至 73 億美元之間。根據該行業 5 月和 6 月的銷售數據，我們相信本指南將使我們能夠擴大市場份額，因為當前趨勢表明整個行業將出現更大的下降。

As I said earlier, our model provides double-digit operating margins even in a tough macro environment. We are maintaining investments this year of nearly $75 million in OpEx to enhance our digital and IT capabilities and up to $200 million in capital, which is a demonstration of our increasing confidence in the recovery of engagement and our ability to achieve our mid-term goals. These investments will pressure margins by approximately 1 point, placing us temporarily below our double-digit target in a range of 8.9% to 9.2%. Importantly, these investments strategically position us to take advantage of the expected recovery in bridal that will begin later this year and capture share when the current macro headwinds recede. Our flexible operating model is in place and working and our fortress balance sheet gives us this opportunity.

正如我之前所說，即使在嚴峻的宏觀環境下，我們的模型也能提供兩位數的營業利潤率。今年，我們將維持近 7500 萬美元的運營支出投資，以增強我們的數字和 IT 能力，以及高達 2 億美元的資本，這表明我們對恢復參與度和實現中期目標的能力越來越有信心。這些投資將使利潤率下降約 1 個百分點，使我們暫時低於 8.9% 至 9.2% 的兩位數目標。重要的是，這些投資在戰略上使我們能夠利用今年晚些時候開始的婚慶行業的預期復蘇，並在當前宏觀不利因素消退時搶占市場份額。我們靈活的運營模式已經到位並正在發揮作用，我們堡壘般的資產負債表給了我們這個機會。

We're also taking action in 3 key areas. We're heightening our focus on innovation at the right price point working to stimulate demand through relevant newness within our assortments, personalized customer journeys and strategic promotions, all while balancing our inventory position. We believe our lean inventory and heightened turn gives us the opportunity to bring newness to market faster than our competition and our scale allows us to create excellent value. Secondly, we are more than doubling our cost savings initiatives from $100 million this year to $225 million to $250 million. And third, we're accelerating our ongoing fleet optimization and plan to close up to 150 stores over the next 12 months that are not meeting our expectations for productivity.

我們還在 3 個關鍵領域採取行動。我們正在以適當的價格加強對創新的關注，努力通過我們的產品類別中的相關新穎性、個性化客戶旅程和戰略促銷來刺激需求，同時平衡我們的庫存狀況。我們相信，我們的精益庫存和提高的周轉率使我們有機會比競爭對手更快地將新產品推向市場，而我們的規模使我們能夠創造卓越的價值。其次，我們將成本節約計劃從今年的 1 億美元增加到 2.25 億至 2.5 億美元，增加了一倍多。第三，我們正在加速正在進行的車隊優化，併計劃在未來 12 個月內關閉多達 150 家未達到我們對生產力預期的商店。

Joan will provide more perspective, but I'll close just by coming back to the core messages we're focusing on today. We delivered our revenue and bottom line commitments in Q1 despite significant pressure, reflecting our agility and flexible operating model. We're adjusting our guidance to reflect current macro economic conditions, while continuing to invest intentionally in the capabilities that we believe are driving market share growth. And we remain confident in both the recovery of engagement and in our ability to achieve the mid-term goals that we outlined at our April Investor Day.

瓊將提供更多觀點，但我將回到我們今天關注的核心信息來結束。儘管面臨巨大壓力，我們還是在第一季度實現了收入和利潤承諾，反映出我們的敏捷性和靈活的運營模式。我們正在調整我們的指導，以反映當前的宏觀經濟狀況，同時繼續有意識地投資於我們認為正在推動市場份額增長的能力。我們對參與度的恢復以及實現我們在四月投資者日概述的中期目標的能力仍然充滿信心。

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

關於這一點，我會將其轉交給瓊。

Thanks, Gina, and good morning, everyone. I want to reinforce today's message by focusing on one of the most important factors in our control, our flexible operating model. We are able to proactively respond to the current business environment and continue to strategically invest to drive market share gains precisely because of our model and our strong balance sheet.

謝謝吉娜，大家早上好。我想通過關注我們控制中最重要的因素之一，即我們靈活的運營模式來強調今天的信息。我們能夠主動應對當前的商業環境，並繼續進行戰略投資，以推動市場份額的增長，正是因為我們的模式和強大的資產負債表。

Turning to the quarter. We delivered nearly $1.7 billion in sales. This represents a sales decline of 9.3% and 13.9% on a same-store sales basis. Traffic was down in the quarter in a mid-single-digit range on a relatively flat ATV and lower conversion. We leveraged strategic promotions towards the end of the quarter as we saw trends soften. In addition, we were able to drive growth in services of over 5%, notably outperforming merchandise performance in the quarter. This is a clear competitive advantage for us in the jewelry industry given our scale and skilled network of artisan jewelers. Our e-commerce penetration increased 500 basis points to nearly 23% compared to a year ago, reflecting our strategic investments in digital.

轉向季度。我們實現了近 17 億美元的銷售額。按同店銷售額計算，銷售額分別下降 9.3% 和 13.9%。由於 ATV 相對平穩且轉化率較低，本季度的流量下降了中個位數。當我們看到趨勢減弱時，我們在本季度末利用了戰略促銷。此外，我們能夠推動服務增長超過 5%，尤其是本季度的商品表現。鑑於我們的規模和熟練的工匠珠寶商網絡，這對我們在珠寶行業來說是一個明顯的競爭優勢。與一年前相比，我們的電子商務滲透率增長了 500 個基點，達到近 23%，這反映了我們對數字化的戰略投資。

Turning now to gross margin. We delivered non-GAAP gross margin of $633 million or 38% of sales, a decline of 160 basis points compared to the prior year. Core merchandise margin expanded more than 100 basis points compared to last year, including the positive contribution of services, discount controls and strategic sourcing initiatives that generated product cost savings. That benefit was offset by deleveraging of fixed costs such as occupancy and lower sales as well as the 50 basis point impact relating to product mix of the digital banner.

現在轉向毛利率。我們的非 GAAP 毛利率為 6.33 億美元，佔銷售額的 38%，比上年下降 160 個基點。與去年相比，核心商品利潤率擴大了 100 個基點以上，其中包括服務、折扣控制和戰略採購舉措的積極貢獻，這些舉措節省了產品成本。這一收益被入住率和銷售額下降等固定成本的去槓桿化以及與數字橫幅產品組合相關的 50 個基點影響所抵消。

Moving on to SG&A. Our non-GAAP spend of $524 million or 31.4% was 240 basis points higher than last year and reflects deleveraging of fixed costs on lower sales and incremental investments and capabilities. And we delivered on our cost savings expectations for the quarter as we continue to identify sourcing opportunities and leverage the flexibility inherent in our labor model. Importantly, in the quarter, our financial services team reached a 3-year extension with [Bread] Financial to further secure stability and the cost of our financial services program.

繼續討論SG&A。我們的非 GAAP 支出為 5.24 億美元，即 31.4%，比去年高出 240 個基點，反映出銷售額下降以及增量投資和能力帶來的固定成本去槓桿化。隨著我們繼續尋找採購機會並利用我們勞動力模式固有的靈活性，我們實現了本季度的成本節約預期。重要的是，在本季度，我們的金融服務團隊與 [Bread] Financial 達成了為期 3 年的延期，以進一步確保我們金融服務計劃的穩定性和成本。

All of this builds to a non-GAAP operating margin of $106.5 million or 6.4% which compares to 10.6% in the prior year. The reduction included approximately 200 basis points related to strategic investments and the Blue Nile acquisition for which we expect the margin pressure to abate in the third quarter. The balance of the reduction in rate is related to deleveraging of cost on a mid-teen comp sales decline.

所有這些使得非 GAAP 營業利潤率為 1.065 億美元，即 6.4%，而上一年為 10.6%。此次下調包括與戰略投資和 Blue Nile 收購相關的約 200 個基點，我們預計第三季度的利潤率壓力將減輕。利率降低的平衡與中位數銷售額下降的成本去槓桿化有關。

Turning to the balance sheet. We ended the quarter with over $650 million of cash and equivalents, down $270 million compared to a year ago. Excluding $200 million in legal settlements paid this quarter and the nearly $390 million acquisition of Blue Nile in the third quarter of last year, we would have increased our cash by over $300 million. We ended the quarter with just under $2.2 billion in inventory. Our inventory was down $33 million compared to last year. Excluding Blue Nile, our core inventory was down $128 million or 6% lower, reflecting our use of data analytics to inform working capital management on a store-by-store basis.

轉向資產負債表。本季度結束時，我們擁有超過 6.5 億美元的現金及等價物，比去年同期減少了 2.7 億美元。如果不包括本季度支付的 2 億美元法律和解金以及去年第三季度近 3.9 億美元收購 Blue Nile 的費用，我們的現金將增加超過 3 億美元。本季度結束時，我們的庫存略低於 22 億美元。與去年相比，我們的庫存減少了 3300 萬美元。不包括 Blue Nile，我們的核心庫存減少了 1.28 億美元，即 6%，這反映出我們使用數據分析來為逐家商店的營運資金管理提供信息。

We've maintained nearly a 1.4x turn with our capital efficiency efforts and our inventory is healthy, paving the way for continued newness in our assortment. We continue to value the strength of our debt position. With an adjusted debt to EBITDA leverage ratio of 2.1x and 1.7x on a net debt basis, we remain in a healthy position to execute on our capital priorities and well below our target of less than 2.75x.

通過我們的資本效率努力，我們的周轉率保持了近 1.4 倍，而且我們的庫存狀況良好，為我們的品種不斷推陳出新鋪平了道路。我們繼續重視我們的債務狀況。在淨債務基礎上，調整後債務與 EBITDA 槓桿比率分別為 2.1 倍和 1.7 倍，我們在執行資本優先事項方面仍處於健康狀態，遠低於我們低於 2.75 倍的目標。

Capital returns to shareholders continues to be a priority for Signet. Year-to-date, we have repurchased $39 million or 500,000 shares and have $761 million in repurchase authorization remaining. We also announced a quarterly cash dividend on common shares this morning of $0.23 per share for the second quarter, payable August 25 to shareholders of record on July 28 of this year.

股東資本回報仍然是 Signet 的首要任務。今年迄今為止，我們已回購了 3,900 萬美元或 50 萬股股票，剩餘回購授權為 7.61 億美元。今天上午，我們還宣布第二季度普通股季度現金股息為每股 0.23 美元，將於 8 月 25 日支付給今年 7 月 28 日登記在冊的股東。

Consistent with our rigorous cost control, we are proactively flexing our model to respond to trends in our business. As Gina mentioned, we are increasing our cost savings target for the year from $100 million to a range of $225 million to $250 million. We expect to achieve this by maximizing our flexible labor model, which allows for dynamic staffing both in stores and in our customer care centers, leveraging AI as a growing capability across many business areas to drive costs out of the system; accelerating the benefits of vertical integration, while working with our supply chain to drive cost transparency; driving out administrative costs that do not impact customers; and finally, accelerating the benefits of our investments and capabilities to build competitive advantages.

與我們嚴格的成本控制相一致，我們正在積極調整我們的模式以應對業務趨勢。正如 Gina 提到的，我們將今年的成本節約目標從 1 億美元提高到 2.25 億美元至 2.5 億美元。我們希望通過最大化靈活的勞動力模式來實現這一目標，該模式允許在商店和客戶服務中心進行動態的人員配置，利用人工智能作為跨多個業務領域不斷增長的能力來降低系統成本；加速垂直整合的效益，同時與我們的供應鏈合作提高成本透明度；消除不影響客戶的管理成本；最後，加速我們的投資和能力的效益，以建立競爭優勢。

Further, as part of our ongoing evaluation of underperforming stores, we now expect to close up to 150 stores over the next 12 months, largely at expiration. We take a holistic approach to drive share market-by-market, leveraging our leading consumer insight capabilities at scale. We perform a continuous review of mall, off-mall and digital channel activity in a given trade area to ensure we are most effectively supporting our connected commerce experience. Most of these closures will likely be in traditional mall locations.

此外，作為我們對錶現不佳商店持續評估的一部分，我們現在預計在未來 12 個月內關閉多達 150 家商店，大部分是在到期時關閉。我們採取整體方法，大規模利用我們領先的消費者洞察能力，逐個市場地提高份額。我們對特定貿易區域的商場、商場外和數字渠道活動進行持續審查，以確保我們最有效地支持我們的互聯商務體驗。大多數關閉的地點可能是在傳統的購物中心地點。

Compared to fiscal '20, off-mall and outlet comparable revenues have outperformed malls by over 800 basis points and we've seen over 70% growth in comparable e-commerce revenue. Further, compared to fiscal '20, comp sales of stores in our top 7 markets have outperformed our remaining fleet by more than 500 basis points as we continue our strategy to drive share in top markets.

與 20 財年相比，商場外和奧特萊斯的可比收入比商場高出 800 個基點，而且我們看到可比電子商務收入增長了 70% 以上。此外，與 20 財年相比，隨著我們繼續實施提高主要市場份額的戰略，我們前 7 個市場的商店的綜合銷售額比我們剩餘的店面高出 500 個基點以上。

I'll now turn to guidance. As a result of declining trends in late April and through the second quarter to date, we expect the current softness will continue throughout the year and have updated our guidance to account for a lower range of top-line outcome. We believe the current trend reflects the impact of increasing macro pressure on discretionary categories, including the jewelry industry. For example, going into Mother's Day, we expected to see a $40 million to $50 million shift from Q1 into Q2 as a result of timing and we did not see this shift materialize.

我現在轉向指導。由於 4 月下旬和第二季度至今的下降趨勢，我們預計當前的疲軟狀況將持續全年，並更新了我們的指引，以考慮較低的營收結果範圍。我們認為，目前的趨勢反映了宏觀壓力加大對包括珠寶行業在內的非必需品類的影響。例如，在母親節到來之際，我們預計由於時間安排，會有 4,000 萬至 5,000 萬美元的資金從第一季度轉移到第二季度，但我們沒有看到這種轉變成為現實。

Additionally, we began to see softening at higher price points which previously had been relatively insulated and lower price points remained under pressure. With this in mind, we expect revenue in the second quarter to be in the range of $1.53 billion to $1.58 billion. We expect non-GAAP operating income in the range of $85 million to $100 million. This outlook includes a small portion of the cost actions we detailed earlier as well as the continuation of strategic investments and the impact of the Blue Nile acquisition in the quarter.

此外，我們開始看到之前相對隔離的較高價格點出現疲軟，而較低價格點仍然面臨壓力。考慮到這一點，我們預計第二季度的收入將在 15.3 億美元至 15.8 億美元之間。我們預計非 GAAP 營業收入在 8500 萬美元至 1 億美元之間。這一展望包括我們之前詳細介紹的一小部分成本行動以及戰略投資的持續性以及本季度收購 Blue Nile 的影響。

Looking to the full year, we now expect fiscal '24 revenue in the range of $7.1 billion to $7.3 billion with the fourth quarter year-over-year performance expected to be slightly higher than the second and third quarters. In addition to bridal recovery and the 53rd week in the fourth quarter this year, we will be lapping the U.K. strike during last year's holiday season. We now expect revenue for the year to decline between 7% to 9% after reducing our full year revenue expectations by approximately $550 million. We anticipate that we will outperform the industry despite a higher bridal mix, thus driving market share gains.

展望全年，我們目前預計 24 財年收入在 71 億美元至 73 億美元之間，第四季度同比業績預計將略高於第二和第三季度。除了新娘復甦和今年第四季度的第53週外，我們還將慶祝去年假期期間的英國罷工。在將全年收入預期下調約 5.5 億美元後，我們現在預計今年收入將下降 7% 至 9%。我們預計，儘管新娘組合較多，但我們的表現仍將優於行業，從而推動市場份額的增長。

We now expect non-GAAP operating income in the range of $635 million to $675 million, reflecting lower revenue, the additional cost savings impacting both gross margin and SG&A, primarily in the second half of the year and maintaining strategic investments. This represents a non-GAAP operating margin of approximately 9% or a low-double-digit margin excluding the investments, showcasing the true flexibility of our model. This translates to a non-GAAP earnings per diluted share in the range of $9.49 to $10.09, which reflects a reduction of interest expense for the year and share repurchases through today to partially offset reduced expectations in operating income.

我們目前預計非 GAAP 營業收入在 6.35 億美元至 6.75 億美元之間，反映出收入下降、額外成本節約影響毛利率和 SG&A（主要在下半年）以及維持戰略投資。這代表著約 9% 的非 GAAP 營業利潤率或不包括投資的低兩位數利潤率，展示了我們模型的真正靈活性。這意味著非公認會計準則每股攤薄收益在 9.49 美元至 10.09 美元之間，反映出本年度利息支出和截至今日的股票回購的減少，部分抵消了營業收入預期的下降。

Before we move on to Q&A, I want to thank our team members who exemplify our culture for their resilience and agility which consistently drive results and serves our customers. And now I'd like to open the line for Q&A.

在我們進行問答之前，我要感謝我們的團隊成員，他們體現了我們的文化，堅韌和敏捷，始終如一地推動成果並為我們的客戶提供服務。現在我想開通問答熱線。

(Operator Instructions) Our first question today comes from the line of Ike Boruchow with Wells Fargo.

（操作員說明）我們今天的第一個問題來自富國銀行的艾克·博魯喬（Ike Boruchow）。

I guess, 2 questions. I think one for Joan and one for Gina. Joan, on the 150 store closures, any chance you could tell us -- you said they're underperforming, but what's the revenue and EBIT associated with those stores? Are they actually losing money? Just kind of curious if there's any more color there. And then Gina, understanding the lowering of the guide, you talked about accelerating some of the investments which is why the margins are below your double-digit target. Does that mean that when we get into next year, assuming engagement starts to inflect the way you think, that you should -- that you believe you'll return to a 10% operating margin? Just kind of curious how we should take those comments that you made.

我想，2個問題。我想一個給瓊，一個給吉娜。瓊，關於 150 家商店關閉，您是否有機會告訴我們——您說它們表現不佳，但與這些商店相關的收入和息稅前利潤是多少？他們真的在賠錢嗎？只是有點好奇那裡是否還有更多顏色。然後吉娜，了解指南的降低，您談到了加速一些投資，這就是利潤率低於兩位數目標的原因。這是否意味著，當我們進入明年時，假設參與度開始改變您的思維方式，您應該相信自己會恢復到 10% 的營業利潤率？只是有點好奇我們應該如何看待您發表的評論。

So I'll start, Ike, with the stores. Up to 150 stores that we believe are underperforming are a mix. In fact, stores that are not cash flow positive and stores that are down trending. And we believe with the current view of the year in terms of our guidance that they're not on the good trajectory. They're not meeting our labor productivity -- I'm sorry, our store productivity targets. So it's a mixture.

艾克，我將從商店開始。我們認為表現不佳的商店有多達 150 家。事實上，現金流不為正的商店和呈下降趨勢的商店。我們認為，就我們的指導而言，從目前對今年的看法來看，它們並沒有走上良好的軌道。他們沒有達到我們的勞動生產率——對不起，我們商店的生產率目標。所以它是一種混合物。

And on the margin, Ike, so our operating model is working exactly as we've designed it to and we are operating at a double-digit rate. We've chosen this year because we see an opportunity to lean in to invest about a point to continue to expand our digital and consumer personalized marketing capabilities. We think this really sets us up to drive an accelerated share growth, especially as engagements come back. But on an ongoing basis, we are well positioned to deliver those double-digit operating margins. This is a temporary decision, intentional decision to invest.

在邊際上，艾克，我們的運營模式完全按照我們設計的方式運作，並且我們的運營速度達到了兩位數。我們選擇今年是因為我們看到了一個機會，可以進行投資，以繼續擴大我們的數字和消費者個性化營銷能力。我們認為這確實使我們能夠推動份額的加速增長，尤其是在業務量恢復的情況下。但在持續的基礎上，我們有能力實現兩位數的營業利潤率。這是一個臨時決定，有意投資的決定。

Our next question comes from Lorraine Hutchinson with Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的洛林·哈欽森 (Lorraine Hutchinson)。

I wanted to follow-up on the new 3-year agreement with Bread. How has the lending standards changed, if at all? Are there any guardrails that give you confidence that they'll continue to lend to your customer base as they have been?

我想跟進與 Bread 簽訂的新的三年協議。貸款標準有何變化（如果有的話）？是否有任何措施讓您相信他們會繼續像以前一樣向您的客戶群提供貸款？

Yeah, within our agreement, we have very clear guidelines on our lending practices approval rates, Lorraine. What I'd say about what we're seeing within our own credit business is that approval rates are in fact down. However, it's because we see an increase in applications online. So as you recall, we have the ability to -- the customers have the ability to apply for credit online and those approval rates are lower and I think you would see that across the industry. So that's what we're seeing with approval rates.

是的，在我們的協議中，我們對貸款實踐批准率有非常明確的指導方針，洛林。關於我們在自己的信貸業務中看到的情況，我想說的是，批准率實際上在下降。然而，這是因為我們看到在線申請數量有所增加。正如您所記得的，我們有能力——客戶有能力在線申請信貸，而且批准率較低，我想您會在整個行業看到這一點。這就是我們所看到的支持率。

And our payment penetration rates are up overall and roughly 300 basis points. And I would also say that the amount financed is also up, Lorraine. So we're seeing a good response within the financial services offering. Our partners, of which Bread is on the prime portfolio partner for that, we're seeing health and we have a very watchful eye on as things move forward. We'll keep an eye on if there's any delinquency or change in approval rates. I would say that we have -- just as a reminder, we don't have credit risk on our balance sheet. And as you know, we removed that several years ago.

我們的支付滲透率總體上升了大約 300 個基點。我還要說的是，融資金額也增加了，洛林。因此，我們在金融服務領域看到了良好的反響。我們的合作夥伴，其中 Bread 是主要的投資組合合作夥伴，我們看到了健康狀況，並且隨著事情的進展，我們非常密切地關注。我們將密切關注是否有任何拖欠或批准率的變化。我想說的是，只是提醒一下，我們的資產負債表上沒有信用風險。如您所知，我們幾年前刪除了它。

And then can you provide us with some insight on how you're thinking about gross margin for the rest of the year? I imagine we'll continue on the fixed cost deleverage, but what do you think the merchandise margin trajectory will look like in this environment?

那麼您能否向我們提供一些關於您如何看待今年剩餘時間毛利率的見解？我想我們將繼續固定成本去槓桿化，但您認為在這種環境下商品利潤率軌跡會是什麼樣子？

Well, what I'd offer there, Lorraine, is that the cost savings that both Gina and I commented on, which increased from $100 million to $125 million to $250 million, half of those impact -- roughly half impact gross margin and largely in the back half of the year. And what did they relate to? Clearly, product cost savings, Gina talked about it, upping that from $20 million to $40 million.

好吧，洛林，我要提供的是吉娜和我都評論過的成本節約，從 1 億美元增加到 1.25 億美元，再到 2.5 億美元，其中一半影響——大約一半影響毛利率，主要是在下半年。它們與什麼有關？顯然，吉娜談到了產品成本節省，並將其從 2000 萬美元提高到了 4000 萬美元。

We're also seeing opportunity given the clearance and the health -- the clearance position and health of our inventory. First quarter, we saw core merchandise margin expansion of 100 basis points. So we're very pleased to see that. So our continued health of our inventory helps us manage margin and just use promotion as a strategic lever for us. So back half, just to recap, half of the cost savings is gross margin and SG&A position and we're just leveraging the initiatives and the competitive advantages we've put in place to deliver that.

考慮到清倉和健康狀況——我們庫存的清倉狀況和健康狀況，我們也看到了機會。第一季度，我們看到核心商品利潤率擴大了 100 個基點。所以我們很高興看到這一點。因此，我們庫存的持續健康有助於我們管理利潤，並利用促銷作為我們的戰略槓桿。因此，回顧一下，成本節省的一半是毛利率和銷售管理費用（SG&A）狀況，我們只是利用我們為實現這一目標而採取的舉措和競爭優勢。

Our next question comes from Paul Lejuez with Citi.

我們的下一個問題來自花旗銀行的 Paul Lejuez。

Can you talk about the promotional landscape out there? Curious who's driving it? You guys have pretty large market share, so I would think that you would typically take more of a lead rather than follow. So I just want to understand that dynamic a little bit in terms of what you're seeing? And then also on your expectations for the bridal business for the rest of the year, any way you can quantify that recovery and engagement? How that translates into your bridal business in terms of just what do you expect over the next couple of quarters in bridal on 2Q and 3Q versus what you expect in 4Q?

您能談談那裡的促銷情況嗎？好奇誰在開車？你們擁有相當大的市場份額，所以我認為你們通常會更多地引領而不是跟隨。所以我只是想根據您所看到的情況稍微了解一下這種動態？然後還有您對今年剩餘時間婚紗業務的期望，您可以通過什麼方式來量化復甦和參與度？這對您的婚禮業務有何影響？您對未來幾個季度第二季度和第三季度婚禮業務的預期與第四季度的預期有何不同？

So let me comment kind of on those in reverse. So on bridal, our predictive models which incorporated trends for many years and 45 different factors that we are tracking on consumers are spot on in terms of the number of consumers who are getting engaged and the units of engagement rings that we sold in the quarter. What's changed a bit is the pressure on consumer spending from the macro environment. So we saw some degradation in ATV in bridal late in the quarter. That's different from what we saw in Q4. So that's a changing trend. And our revised guidance reflects an assumption that units will continue to track in line with our predictions, but we'll continue to see some pressure on ATV.

那麼讓我對那些相反的評論進行評論。因此，在新娘方面，我們的預測模型結合了多年來的趨勢和我們跟踪消費者的 45 個不同因素，在訂婚消費者數量和本季度銷售的訂婚戒指單位方面都是準確的。發生一些變化的是宏觀環境對消費者支出的壓力。因此，我們在本季度末看到新娘的 ATV 有所下降。這與我們在第四季度看到的不同。所以這是一個變化的趨勢。我們修訂後的指導反映了這樣一個假設，即單位將繼續符合我們的預測，但我們將繼續看到 ATV 面臨一些壓力。

So what's the pressure coming from? It's a combination of 2 things. One is a bit of consumer trade down. So people still getting engaged, but buying a ring at a slightly lower price. And we don't think that everyone in the bridal category predicted this downturn in engagements as accurately as we did and have some excess inventory in bridal. And so we've seen a slightly heightened rate of promotion in bridal that we wouldn't typically have seen. We're assuming both of those things continue for the rest of the year in the revised guidance.

那麼壓力來自於什麼呢？這是兩件事的結合。一是消費者貿易略有下降。所以人們仍在訂婚，但以略低的價格購買戒指。我們認為，婚禮類別中的每個人都不像我們那樣準確地預測了訂婚量的下滑，並且婚禮庫存有一些過剩。因此，我們看到婚禮的促銷率略有上升，這是我們通常不會看到的。我們假設在修訂後的指導中，這兩件事將在今年剩餘時間內繼續下去。

Our next question comes from Mauricio Serna with UBS.

我們的下一個問題來自瑞銀集團的 Mauricio Serna。

First, I guess, I'd like to ask on the gross margin guidance. Are you expecting to maintain the core merchandise margins expanding in the next couple of quarters? And then if I think about like industry dynamics, is there anything you can tell us about like how the lab grown diamonds are disrupting maybe ATV or the discounting that you're seeing across the space? And just very lastly, on the cost savings, the increase that you are expecting, would you say like that change is like mostly attributed to the savings from the store closures that you're expecting now or what are the other main drivers behind that increase of $100 million to $150 million on the cost savings target?

首先，我想我想問一下毛利率指導。您是否期望在未來幾個季度保持核心商品利潤率的擴大？然後，如果我考慮行業動態，您有什麼可以告訴我們的，比如實驗室種植的鑽石如何顛覆 ATV 或您在整個領域看到的折扣？最後，關於成本節省，您期望的增長，您是否會說這種變化主要歸因於您現在期望的商店關閉帶來的節省，或者這種增長背後的其他主要驅動因素是什麼成本節約目標為 1 億至 1.5 億美元？

So as I mentioned, Mauricio, on gross margin, we are very pleased with our inventory position and the health of our inventory, which really reflects it within our core businesses. So yes, we would expect to see continued positivity in our positive results in our core merchandise margin. In May, just importantly, in May, we also saw the continued decline in inventory year-over-year. So very pleased with how the team is managing inventory to continue to position us well, to take strategic promotion as needed and really paving the way for newness for us, which is a critical component of continuing to deliver that margin expansion.

正如我所提到的，毛里西奧，就毛利率而言，我們對我們的庫存狀況和庫存狀況非常滿意，這確實反映了我們的核心業務。所以，是的，我們預計我們的核心商品利潤率將繼續保持積極的業績。 5月份，重要的是，5月份，我們還看到庫存同比持續下降。我們對團隊管理庫存的方式感到非常滿意，以便繼續為我們提供良好的定位，根據需要採取戰略促銷，並真正為我們的創新鋪平道路，這是繼續實現利潤擴張的關鍵組成部分。

The other point I'd make on margin is services. Services, as we said at our Investor Day, carries a 20% premium to merchandise margin and we're seeing services growth of 5% outpacing clearly merchandise growth and services itself. When we are advancing repair, we're advancing our warranty programs as well and the customer continues to respond to those. And we're holding -- very importantly, holding our attachment rate in bridal and overall raising attachment rate 200 basis points in the first quarter, as Gina mentioned.

關於保證金，我要說的另一點是服務。正如我們在投資者日所說，服務的利潤率比商品利潤高出 20%，而且我們看到服務增長 5%，明顯超過了商品和服務本身的增長。當我們推進維修時，我們也在推進我們的保修計劃，並且客戶會繼續對這些計劃做出回應。正如吉娜提到的，非常重要的是，我們在第一季度將新娘的依戀率和總體依戀率提高了 200 個基點。

And then Mauricio, on lab-created diamonds, we do not see ATV in bridal being driven by LCDs. They're less than 15% of our overall sales and just an important consumer trend and offering for us. We believe that the majority of our customers still prefer the rarity that comes from buying a one-of-a-kind natural diamond. What tends to happen is that engagement shoppers begin their journey with a predetermined budget. And so for those who are open to lab-created diamonds, we've consistently seen them trade up to a larger stone, which we have a competitive advantage in our offering because we're vertically integrated. And so we've been able to I think really manage that very effectively to have an equal or higher ATV typically with a better margin profile for the company.

然後 Mauricio，關於實驗室製造的鑽石，我們沒有看到婚禮中的 ATV 由 LCD 驅動。它們只占我們總銷售額的 15% 以下，但對我們來說只是一個重要的消費趨勢和產品。我們相信，大多數客戶仍然更喜歡購買獨一無二的天然鑽石所帶來的稀有性。通常發生的情況是，參與式購物者以預定的預算開始他們的旅程。因此，對於那些對實驗室製造的鑽石持開放態度的人來說，我們一直看到他們升級為更大的鑽石，我們在產品中具有競爭優勢，因為我們是垂直整合的。因此，我認為我們能夠真正有效地管理這一點，以擁有同等或更高的 ATV，通常為公司帶來更好的利潤狀況。

And then with respect to cost savings, Mauricio, the $150 million increase, a portion of that clearly relates to our -- the store closings. However, we continue to lean into our store, the dynamic store labor model that we have and we apply that as well to our customer care centers, which enables us to continue to flex at a nice rate to continue to drive our double-digit operating model that we believe is very much intact and working.

然後，關於成本節約，Mauricio，增加了 1.5 億美元，其中一部分顯然與我們的——商店關閉有關。然而，我們繼續依靠我們的商店，我們擁有的動態商店勞動力模式，我們也將其應用於我們的客戶服務中心，這使我們能夠繼續以良好的速度靈活地繼續推動我們兩位數的運營我們認為該模型非常完整且有效。

I would also articulate that the sourcing opportunities itself are -- that provide cost transparency, we believe it can take costs out of the product without compromising quality and innovation and that is factored into here as well as driving out administrative costs that the customer just doesn't see. And our team is very much -- this is a muscle and a rigor that we've built over the last 2 to 3 years and we are in step and plan and see the path to delivering this incremental cost savings.

我還想闡明的是，採購機會本身提供了成本透明度，我們相信它可以在不影響質量和創新的情況下降低產品成本，這一點也被考慮在內，並消除了客戶不希望看到的管理成本。沒看到。我們的團隊非常——這是我們在過去 2 到 3 年裡建立起來的力量和嚴謹性，我們正在按部就班、計劃並尋找實現這種增量成本節約的途徑。

And did you provide or can you talk about the signing bonus for the Bread Financial contract renewal?

您是否提供或能否談談麵包金融續約的簽約獎金？

We didn't mentioned that. We have an appropriate arrangement with Bread. We've extended it 3 years. It's a very strong partnership for us. And we believe strongly that this helps us really stabilize a view of cost of funds as we navigate into the future together.

我們沒有提到這一點。我們與麵包有適當的安排。我們已經將其延長了 3 年。這對我們來說是非常牢固的合作夥伴關係。我們堅信，這有助於我們在共同走向未來時真正穩定對資金成本的看法。

Our next question comes from Jim Sanderson with Northcoast Research.

我們的下一個問題來自北海岸研究公司的吉姆·桑德森。

I wanted to dig in a little bit more to the same-store sales expectation based on the revised guidance. Should we anticipate a continued negative double-digit teen comp pretty much through the holiday quarter? And can you give us a sense of how you're looking at that balance between transaction value and declines in actual transactions throughout the rest of the fiscal year?

我想根據修訂後的指導進一步深入了解同店銷售預期。我們是否應該預計整個假期季度青少年收入將持續呈兩位數負值？您能否讓我們了解您如何看待本財年剩餘時間內交易價值與實際交易下降之間的平衡？

So I'll take that, Jim. So in terms of the pace across the year, I mentioned that we would expect second and third quarter to continue the trends that we saw in first quarter. Fourth quarter, we see it slightly higher due to a few things, and we don't really give comp guidance, as you know. So when you look at it on a total revenue basis, there are a few things in there. One is the fact that we have a 53rd week. We were lapping the U.K. labor strikes. We also had a significant impact over holiday, the last 3 days of holiday due to weather, although we're very well aware that that could happen again.

所以我會接受的，吉姆。因此，就全年的步伐而言，我提到我們預計第二季度和第三季度將延續第一季度的趨勢。第四季度，由於一些原因，我們認為它略有上升，而且如您所知，我們並沒有真正給出比較指導。因此，當你從總收入的角度來看時，你會發現其中有一些東西。一是我們已經有 53 週了。我們正在關注英國的勞工罷工。由於天氣原因，我們在假期的最後三天也受到了重大影響，儘管我們非常清楚這種情況可能會再次發生。

And then I'd say, lastly, the bridal recovery is factored into the fourth quarter as well. But to Gina's point, we are very mindful and thoughtful about the ATV level that we're seeing in bridal today and we have carried that through the balance of the year in our guidance. So we would expect a continued decline in transactions, being the same impact on ATV that we saw in the first quarter related to bridal. And we're positioned for -- with good inventories and healthy inventories to take the appropriate promotional actions that we believe we would need to take throughout the year.

最後，我想說的是，新娘的複蘇也被納入了第四季度。但就吉娜而言，我們對今天在婚禮中看到的 ATV 水平非常謹慎和深思熟慮，並且我們在今年餘下的時間裡一直在指導中貫徹這一水平。因此，我們預計交易量將持續下降，這與我們在第一季度看到的與婚禮相關的對 ATV 的影響相同。我們的定位是——擁有良好的庫存和健康的庫存，以採取我們認為全年都需要採取的適當促銷行動。

Just a follow-up question on the 150 store closure announcement. I think that will be complete some time in fiscal 2025. Can you give us a sense, first of all, what you would expect based on your history with closing stores? How much of the sales from the closed stores you would expect to recapture from omnichannel? And then wondering if you can provide any thoughts on what type of positive impact that will have on EBIT margin going forward?

只是關於關閉 150 家商店的公告的後續問題。我認為這將在 2025 財年的某個時候完成。您能否首先告訴我們，根據您關閉商店的歷史，您的期望是什麼？您希望通過全渠道重新奪回已關閉商店的多少銷售額？然後想知道您是否可以就這將對未來息稅前利潤率產生何種類型的積極影響提供任何想法？

We haven't dimensioned the overall impact of the store closings, but clearly as part of our $250 million cost savings program. What I would say is that they -- what we see in transference is, we have stronger transference in our largest banners, the Kay and Zales banner. And as I said, we would expect most of these closures to occur in traditional mall locations. So we've seen nice transference there.

我們尚未評估關閉商店的總體影響，但顯然這是我們 2.5 億美元成本節約計劃的一部分。我想說的是，我們在移情中看到的是，我們最大的橫幅，即凱和扎爾斯橫幅，有更強的移情。正如我所說，我們預計大部分關閉將發生在傳統購物中心地點。所以我們在那裡看到了很好的轉移。

We have been able to capture -- if you look at our sales per square feet, over the last several years, we've seen significant increase in sales per square feet, indicating that as we've -- as you know, over the last 5 years, we've closed -- 5 years to 6 years, we've closed over 1,000 stores and we've had a significant increase in sales per selling square foot that we expect as well to pick up volume within our e-commerce channel.

我們已經能夠捕捉到——如果你看看我們每平方英尺的銷售額，在過去的幾年裡，我們看到每平方英尺的銷售額顯著增長，這表明我們——如你所知，在過去 5 年，我們關閉了 - 5 年到 6 年，我們關閉了 1,000 多家商店，每銷售平方英尺的銷售額顯著增加，我們預計我們的電子銷售量也會增加商務渠道。

And just one like quick last question on Blue Nile. That will be fully included in the comp base by the fourth quarter?

還有一個關於 Blue Nile 的最後一個問題。到第四季度這將完全納入補償基礎嗎？

Yes. And as you recall, we've acquired it in mid-August. We acquired Blue Nile. And that business is doing quite nicely for us in terms of the combination of the digital banners has really demonstrated strength. Synergies are pacing to expectation. And really expect to -- we'll have the re-platforming done for the start of the third quarter. So really, as you recall, we said last quarter that we expect a 1 point impact on our EBIT margins related to that acquisition in the first and second quarter and that begins to abate in the third and fourth quarter of next year. So very good news there.

是的。正如您所記得的，我們是在八月中旬購買的。我們收購了 Blue Nile。就數字橫幅的組合而言，這項業務對我們來說做得非常好，確實展示了實力。協同效應正在達到預期。我們真的希望——我們將在第三季度初完成平台重組。所以，實際上，正如您所記得的那樣，我們上個季度表示，我們預計第一和第二季度與此次收購相關的息稅前利潤率將受到 1 個百分點的影響，並且這種影響將在明年第三和第四季度開始減弱。這是非常好的消息。

Our next question comes from Dana Telsey with Telsey Advisory Group.

我們的下一個問題來自特爾西諮詢小組的達納·特爾西。

As you think about the current environment and the volatility, the market share opportunities given the large size that independents are of the jewelry industry, what do you see as the -- any quantitative market share opportunities you have, especially with the new businesses that you've acquired that expand the customer base? Is there maybe even into next year, revenue opportunities that you can leverage with services that you're thinking about as we move forward? And then lastly, in the current environment, obviously, we know about the bridal business, what are you seeing in self-purchase? And what are you seeing by brand there? And just one other quick thing. Any shift in the exit rate of the business versus during the quarter? And did it vary by region?

當您考慮當前的環境和波動性時，鑑於珠寶行業獨立人士的規模很大，您認為您擁有的任何定量市場份額機會是什麼，特別是您的新業務已經收購擴大了客戶群？在我們前進的過程中，您考慮的服務是否可以在明年利用，帶來收入機會？最後，在當前的環境下，顯然，我們了解婚紗行業，您對自購有何看法？您在那裡看到的品牌是什麼？還有另一件快事。與本季度相比，業務退出率有何變化？是否因地區而異？

So in terms of market share, Dana, we see this as a huge opportunity. One of the things we've done in our transformation is created the flexibility by having lean inventory, by paying down our debt, by creating a fortress balance sheet. We've created the flexibility to invest in the midst of disruption. That's what we did when we acquired Blue Nile at what we think was a very favorable price. We were able because of our cash position to do that. And we find ourselves in a similar position now where we see significant disruption in the industry. And so we're leaning in and playing offense.

因此，就市場份額而言，Dana，我們認為這是一個巨大的機會。我們在轉型中所做的事情之一就是通過精益庫存、償還債務、創建堡壘資產負債表來創造靈活性。我們創造了在顛覆中進行投資的靈活性。當我們以我們認為非常優惠的價格收購 Blue Nile 時，我們就是這麼做的。由於我們的現金狀況，我們能夠做到這一點。我們發現自己現在處於類似的境地，我們看到該行業發生了重大顛覆。所以我們正在向前推進並進攻。

If you look at the first quarter, we believe that we grew share in bridal relative to independence. If you look at fashion, we have been building our fashion business to increase it as a percent of our total mix for the last three years in preparation for this moment that we anticipated that engagements would be down based on the COVID lack of dating 3 years ago. So we've grown our fashion business 36% over the last several years in preparation for this moment.

如果你看一下第一季度，我們相信我們的婚禮份額相對於獨立份額有所增長。如果你看看時尚界，過去三年來，我們一直在建立我們的時尚業務，以提高其在我們總業務中的比例，為這一刻做好準備，我們預計，由於新冠病毒導致三年內缺乏約會，參與度將會下降。前。因此，我們的時尚業務在過去幾年中增長了 36%，為這一刻做好準備。

So that's why we've made the choice to lean in and continue those investments so that especially as engagements return, which we think happens toward the end of this fiscal year in our fourth quarter, and ultimately, as macro pressures abate, we are ready to really put our foot on the accelerator and move ahead more quickly. So we are seeing that as a big opportunity this year. And I appreciate you asking that because I hope that's a key takeaway from this call is that we are leaning in to accelerate our competitive advantages.

因此，這就是為什麼我們選擇傾斜並繼續這些投資，以便特別是當業務回歸時，我們認為這種情況會在本財年末的第四季度發生，最終，隨著宏觀壓力的減輕，我們已經做好了準備真正踩下油門，更快地前進。因此，我們認為這是今年的一個巨大機遇。我很感謝你問這個問題，因為我希望這次電話會議的一個關鍵要點是我們正在努力加速我們的競爭優勢。

In terms of self-purchase, we are seeing self-purchase at higher price points continue, lower price points continue to be pressured, but we're very pleased with the breadth of our banner portfolio and how that is allowing us to play into consumer trends at all price points. So for example, Banter represents a strong self-purchase opportunity for us. We've seen the lower price points a bit challenge, but with our scale, we can bring excellent value. So we believe that we're performing better as a result.

在自購方面，我們看到較高價位的自購仍在繼續，較低價位繼續受到壓力，但我們對我們的橫幅產品組合的廣度以及這如何讓我們能夠吸引消費者感到非常滿意所有價位的趨勢。例如，Banter 對我們來說代表了一個強大的自我購買機會。我們已經看到較低的價格點有點挑戰，但憑藉我們的規模，我們可以帶來卓越的價值。因此，我們相信我們的表現會因此而更好。

And we lean into services like piercing, which really has been growing. We've -- I think I mentioned a couple of quarters ago that we've expanded from just ear piercing to also needle piercing, which has really been a great new service offering for us. In the quarter, we leaned in heavily on services. It's a high margin competitive advantage for us and we saw that really work with services, totally changing the trajectory of how they've ever been in the past. Typically, they follow merchandise comps almost point-for-point. We were able to grow services 5 percentage points in the quarter even though merchandise was down. So we're pleased with how those competitive advantages are coming to life. And all of that's really why we're leaning in to drive more market share growth.

我們傾向於穿孔等服務，這種服務確實一直在增長。我想我在幾個季度前就提到過，我們已經從只穿耳洞擴展到了穿針，這對我們來說確實是一項很棒的新服務。本季度，我們嚴重依賴服務。這對我們來說是一個高利潤的競爭優勢，我們看到它確實與服務相結合，完全改變了它們過去的軌跡。通常，他們幾乎逐點跟踪商品比較。儘管商品數量下降，我們仍能夠在本季度將服務增長 5 個百分點。因此，我們對這些競爭優勢的實現感到高興。所有這些都是我們致力於推動更多市場份額增長的真正原因。

Dana, on your question on, I guess, exiting the actual rate of the quarter-to-quarter, we saw the softening start, Dana, in the really late into April and we pivoted to strategic promotion, to your point, double down on services. We saw actually late in the quarter our services attachment rate go up higher than the 200 basis points that we saw during the quarter and then it continued. The trend continued really across the fleet and online. We continue to see the same trends throughout May and June. What we're really pleased with is that inventories continue to be well controlled and managed by the team.

達納，關於你的問題，我想，從季度到季度的實際增長率來看，我們看到了疲軟的開始，達納，在四月末，我們轉向戰略促銷，就你的觀點而言，加倍努力服務。事實上，我們在本季度末看到我們的服務附加率高於本季度的 200 個基點，然後這種情況持續下去。這一趨勢在整個車隊和線上持續持續。我們在五月和六月繼續看到相同的趨勢。我們真正感到滿意的是，團隊繼續很好地控制和管理庫存。

Those are all the questions we have for today, so I'll turn the call back to the management team for any concluding remarks.

這些就是我們今天提出的所有問題，因此我會將電話轉回給管理團隊以獲取任何結論性意見。

Well, I want to thank all of you again for joining us today. What I hope you took away is that despite the pressured environment in which we're operating, our flexible operating model and strategic investments are working. We are confident in our capabilities, and so we're playing offense, leaning in to widen our competitive advantages to drive market share growth. Thank you.

好吧，我想再次感謝大家今天加入我們。我希望您學到的是，儘管我們的運營環境充滿壓力，但我們靈活的運營模式和戰略投資正在發揮作用。我們對自己的能力充滿信心，因此我們正在積極進攻，努力擴大我們的競爭優勢，以推動市場份額的增長。謝謝。

Thank you everyone for joining us today. This concludes the Signet Jewelers Q1 earnings call. And you may now disconnect your lines.

感謝大家今天加入我們。 Signet Jewelers 第一季度財報電話會議到此結束。現在您可以斷開線路了。