Signet Jewelers Ltd (SIG) 2025 Q1 法說會逐字稿

Good morning, and welcome to Signet Jewelers First Quarter Fiscal 2025 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Signet Jewelers 2025 財年第一季財報電話會議。（操作員指示）請注意，此事件正在記錄中。

Joining us on the call today are Rob Ballew, Senior Vice President of Investor Relations; Gina Drosos, Chief Executive Officer; and Joan Hilson, Chief Financial, Strategy and Services Officer.

今天參加電話會議的有投資者關係高級副總裁 Rob Ballew；吉娜·德羅索斯（Gina Drosos），執行長；以及財務、策略與服務長瓊‧希爾森 (Joan Hilson)。

At this time, I would like to turn this conference over to Mr. Rob Ballew, Senior Vice President of Investor Relations. Please go ahead, sir.

現在，我想將本次會議交給投資者關係高級副總裁 Rob Ballew 先生。先生，請繼續。

Good morning. Welcome to Signet Jewelers First Quarter Fiscal '25 Earnings Conference Call.

早安.歡迎參加 Signet Jewelers 25 財年第一季財報電話會議。

During today's discussion, 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.

在今天的討論中，我們將做出一些前瞻性的陳述。任何非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。我們建議您閱讀我們的 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、警示語言和其他揭露內容。除法律要求外，我們不承擔根據新資訊或未來事件修改或公開更新前瞻性聲明的義務。

During the call, we will discuss certain non-GAAP financial measures. For further discussions of the non-GAAP financial measures, as well as reconciliation 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 ir.signetjewelers.com. Additionally, a new investor presentation deck was also posted to our IR website this morning that we believe investors will find helpful.

在電話會議中，我們將討論某些非公認會計準則財務指標。有關非公認會計準則財務指標的進一步討論，以及非公認會計準則財務指標與最直接可比較的公認會計準則指標的調節，投資者應查看我們在 ir.signetjewelers.com 網站上發布的新聞稿。此外，今天早上我們還在 IR 網站上發布了一份新的投資者演示文稿，我們相信投資者會覺得很有幫助。

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

說完這些，我會把電話轉給吉娜。

Thanks, Rob, and good morning, everyone. I'd first like to thank our Signet team for delivering our expectations for the quarter. This continues to be a challenging environment with macro pressure on the consumer and heightened discount activity among many jewelry participants. Our team's tenacity and commitment to our customers is delivering our success and is an inspiration to me every day.

謝謝，羅布，大家早安。我首先要感謝我們的 Signet 團隊實現了本季的預期。這仍然是一個充滿挑戰的環境，消費者面臨宏觀壓力，許多珠寶參與者的折扣活動也加強了。我們團隊的堅韌和對客戶的承諾為我們帶來了成功，並且每天激勵我。

I'd like to leave you with three key takeaways today. First, we delivered quarterly results within our guidance and are seeing momentum in the business driven by the accelerating engagement recovery, the success of our new fashion product offerings, and a continued strong performance in jewelry services. Second, we increased guidance for the year in April and are reaffirming that higher guide, which includes an inflection to positive same-store sales in the second-half of the year.

今天我想留給你們三個關鍵要點。首先，我們實現了預期的季度業績，並且業務發展勢頭良好，這得益於參與度加速恢復、新時尚產品的成功以及珠寶服務的持續強勁表現。其次，我們在四月提高了年度業績預期，並重申了這一更高預期，其中包括今年下半年同店銷售額將轉為正成長。

Third, our flexible operating model is working as designed, driving margin performance, strong free cash flow conversion and improving our balance sheet, all of which are delivering meaningful growth to adjusted diluted EPS. For perspective, our adjusted diluted EPS this quarter is nearly 14 times higher than pre-pandemic, and we've more than doubled our adjusted operating income.

第三，我們靈活的營運模式正在按設計運行，推動利潤率表現、強勁的自由現金流轉換並改善我們的資產負債表，所有這些都為調整後的攤薄每股收益帶來了有意義的成長。從角度來看，本季我們的調整後攤薄每股收益比疫情前高出近 14 倍，調整後的營業收入增加了一倍以上。

I'll now elaborate on each of these important takeaways. This quarter we delivered $1.5 billion in sales and $58 million in adjusted operating income in the top half of guidance. Recall that February was sluggish for retail. We saw trends begin to improve with late Valentine's Day shopping and further momentum through March and April, delivering a quarter with meaningful acceleration to Q4.

我現在將詳細說明每一個重要要點。本季度，我們實現了 15 億美元的銷售額和 5,800 萬美元的調整後營業收入，均達到預期目標的上半部。回想一下，二月是零售業不景氣的月份。我們看到，隨著情人節後期的購物，趨勢開始好轉，並在三月和四月進一步增強勢頭，使第四季度出現了有意義的加速。

In bridal, we've seen the expected sequential improvement in engagements to last quarter, excluding our digital banners. From low double-digit decline in the fourth quarter, we've seen engagements improve to mid-single-digit decline in Q1 with April and May reflecting low single-digit decline. Our most bridal-focused banner, Diamonds Direct, has already inflected to positive units in April, with Kay and Jared having delivered several weeks of unit growth in recent months.

在婚紗方面，我們看到上個季度的參與度出現了預期的連續改善（不包括我們的數位橫幅）。從第四季的低兩位數降幅，我們看到參與度在第一季有所改善，降至中等個位數降幅，其中四月和五月均出現了低個位數降幅。我們最專注於婚禮的品牌 Diamonds Direct 在 4 月的銷售量已經出現正成長，其中 Kay 和 Jared 在最近幾個月的銷售量連續數週都實現了成長。

Engagement units below $5,000 were flat to last year in April. We are seeing slower recovery at price points above $5,000, in part due to the digital banner challenges we discussed last quarter, which contributed to a small decrease in average transaction value or ATV. Engagements continued to improve in May and we anticipate further improvement as the second quarter progresses.

4 月份，5,000 美元以下的參與單位數量與去年持平。我們發現 5,000 美元以上價格點的復甦速度較慢，部分原因是我們上個季度討論過的數位橫幅挑戰，這導致平均交易價值或 ATV 略有下降。五月參與度持續改善，我們預計隨著第二季的進展，參與度將進一步改善。

Our proprietary data continues to point to a multi-year recovery and we believe we remain on track to see engagements in the US increase 5% to 10% for fiscal 2025. We are continuing to leverage our data on 17 million individuals in a dating relationship to do targeted marketing at the right time to win the bridal recovery.

我們的專有數據繼續指向多年的復甦，我們相信我們仍有望看到美國的參與度在 2025 財年增長 5% 至 10%。我們將繼續利用 1700 萬處於約會狀態的個人數據，在適當的時間進行有針對性的行銷，以贏得新娘的青睞。

Sales of fashion merchandise are also gaining momentum. From March through May, fashion sales improved nearly 500 basis points, compared to February in the fourth quarter, driven by branding and new merchandise items. We continue to see strong sell-through of newness with new merchandise as a percent of sales, up more than 25% to this time last year in core banners. For example, revenue from the Shy Collection at Jared and our Unstoppable Love collection at Kay are both up materially, driven by strong performance of new items in those assortments. Our new product strategy is also working to protect our ATV, as well as expand merchandise margins.

時尚商品的銷售也日益增加。從 3 月到 5 月，在品牌推廣和新商品的推動下，時尚銷售額比第四季 2 月成長了近 500 個基點。我們繼續看到新品銷售強勁，新商品佔銷售額的百分比與去年同期相比增長了 25% 以上。例如，Jared 的 Shy 系列和 Kay 的 Unstoppable Love 系列的營收均大幅成長，這得益於這些系列中新品的強勁表現。我們的新產品策略也致力於保護我們的 ATV，並擴大商品利潤率。

We leverage our scale to innovate at attractive price points, delivering strong value for our customers. These include items such as lab-created diamond fashion pieces and precious metal jewelry, including gold, silver, and platinum. For example, the strength of our branded Neil Lane collection held a near-flat ATV to this quarter last year, while delivering a 20% increase in units. Further, our value-focused fashion banner, Banter by Piercing Pagoda, had flat same-store sales in the quarter on the continued strength of our gold assortment. We saw this same trend extend to peoples in Canada and H Samuel in the UK.

我們利用我們的規模以具有吸引力的價位進行創新，為我們的客戶提供強大的價值。這些物品包括實驗室製造的鑽石時尚飾品和貴金屬珠寶，包括黃金、白銀和鉑金。例如，我們品牌的 Neil Lane 系列的強勁表現使 ATV 銷量與去年本季基本持平，但銷量卻成長了 20%。此外，由於我們黃金系列的持續強勁成長，我們注重價值的時尚品牌 Banter by Piercing Pagoda 本季同店銷售額持平。我們看到同樣的趨勢延伸到加拿大人民和英國的 H Samuel。

Another key driver of fashion is our loyalty program, which delivers a more personalized shopping experience and grows lifetime value. This includes targeted marketing to drive follow-up purchases in fashion, it's working. In Q1, the penetration of active loyalty members purchasing fashion increased 20 points, compared to a year ago.

時尚的另一個關鍵驅動力是我們的忠誠度計劃，它提供了更個人化的購物體驗並增加了終身價值。這包括有針對性的行銷來推動時尚的後續購買，它正在發揮作用。第一季度，購買時尚產品的活躍忠誠會員的滲透率與去年同期相比增加了 20 個百分點。

We've also extended efforts to win new members to include engagement ring recipients, which has contributed to a more than 25% increase in total members since fiscal ‘24 year-end. Our targeted marketing provides members value in select merchandise based on their tastes and shopping preferences and is a key strategy in our merchandise margin expansion plan.

我們也加強了吸引新會員的力度，包括訂婚戒指接收者，這使得自 24 財年末以來會員總數增加了 25% 以上。我們的目標行銷根據會員的品味和購物偏好為他們提供精選商品的價值，這是我們商品利潤擴展計劃的關鍵策略。

Before moving on from fashion, I'd like to provide an update on lab-created diamonds or LCDs. Over the past five years, LCD production has grown more efficient. This has allowed LCD costs in retails to come down, providing attractive options for many price-conscious customers that are looking for larger-carat options than they can afford in a natural diamond engagement ring. Our merchandise strategy and trade-up selling has been effective at largely maintaining our ATV, while many engagement ring consumers looking to maintain a long-term value continue to be attracted to natural diamonds for their rarity and uniqueness.

在談時尚之前，我想先介紹一下實驗室製造的鑽石或液晶顯示器的最新情況。過去五年來，LCD 的生產效率不斷提高。這使得零售中的 LCD 成本下降，為許多注重價格的客戶提供有吸引力的選擇，這些客戶正在尋找比他們能負擔得起的天然鑽石訂婚戒指中克拉數更大的鑽石。我們的商品策略和以舊換新銷售在很大程度上維持了我們的 ATV，而許多尋求保持長期價值的訂婚戒指消費者繼續被天然鑽石的稀有性和獨特性所吸引。

In fashion, however, we see meaningful runway for LCD expansion in a segment of the industry that is traditionally seen lower overall penetration of natural diamond assortment. It's a trade-up opportunity. For example, in Q1, we've increased LCD fashion offerings, driving a 14% increase in LCD fashion revenue, compared to a year ago. These LCD fashion pieces carry more than two times the ATV of non-LCD pieces at attractive margins for Signet.

然而，在時尚領域，我們看到 LCD 擴張具有有意義的空間，因為傳統上該行業的天然鑽石品種整體滲透率較​​低。這是一個升級的機會。例如，在第一季度，我們增加了 LCD 時尚產品，與一年前相比，LCD 時尚收入成長了 14%。這些 LCD 時尚單品的 ATV 是非 LCD 時尚單品的兩倍多，為 Signet 帶來了頗具吸引力的利潤。

My next takeaway builds off my first. We remain on track to inflect positive same-store sales in the second-half of this year. The building blocks of our Q1 performance will gain strength as the year plays out. We will further increase the penetration of merchandise newness in our inventory through more frequent deliveries and increased depth of new product offerings. We also believe our competitive advantages such as scale, consumer insights and technology provide Signet the opportunity to continue to drive fashion and bridal categories in a challenging macro environment.

我的下一個收穫是基於我的第一個收穫。我們仍有望在今年下半年實現同店銷售額的正面成長。隨著時間的推移，我們第一季業績的基礎將不斷增強。我們將透過更頻繁的交貨和增加新產品的深度來進一步提高商品新品在庫存中的滲透率。我們也相信，我們的規模、消費者洞察和技術等競爭優勢為 Signet 提供了在充滿挑戰的宏觀環境中繼續推動時尚和婚禮類別的機會。

There are two leading indicators that we believe point to sales traction. First, our largest banner in each country we operate has delivered flat or positive comp sales in May. Second, our e-commerce sales, excluding our digital banners, also comped positive in May.

我們認為有兩個領先指標可以顯示銷售吸引力。首先，我們在每個營運國家最大的橫幅廣告在五月都實現了持平或正成長的銷售額。其次，我們的電子商務銷售額（不包括數位橫幅）在 5 月也實現了正成長。

Our optimized physical and digital footprints are a competitive advantage with jewelry shoppers. It's the combination of both footprints that provide for connected commerce capabilities like ship from store and virtual jewelry consultants or JCs. More recently, we've introduced social selling capabilities for our JCs, which are showing a positive impact already. Our jewelry consultants are combining their social outreach with personalized storefronts, and we expect social selling will triple its revenue contribution in fiscal '25, or approximately 0.5 point of Signet comp growth this year.

我們優化的實體和數位足跡對於珠寶購物者來說具有競爭優勢。兩種模式的結合提供了互聯商務功能，例如從商店發貨和虛擬珠寶顧問或 JC。最近，我們為JC引入了社交銷售功能，並且已經產生了積極的影響。我們的珠寶顧問正在將他們的社交推廣與個人化店面結合起來，我們預計社交銷售將在 25 財年使其收入貢獻增加兩倍，或今年 Signet 公司收入增長約 0.5 個百分點。

Last quarter, we spoke about the integration challenges at our digital banners. Planned interventions are underway and showing progress. For example, we're working to correct or establish inventory API connections with our just-in-time vendors to streamline our supply chain management and improve the speed of our fulfillment. And we've launched a fast shipping program for select wedding bands that we can create in-house. As a reminder, our full-year guidance does not include any improvement in our digital banners. We'll continue to provide operational updates as the year progresses.

上個季度，我們討論了數位橫幅的整合挑戰。計劃的干預措施正在進行中並取得進展。例如，我們正在努力修正或建立與即時供應商的庫存 API 連接，以簡化我們的供應鏈管理並提高我們的履行速度。我們也針對部分我們可以自行製作的結婚戒指推出了快速運輸計劃。提醒一下，我們的全年指引並不包括數位橫幅的任何改進。隨著時間的推移，我們將繼續提供營運更新。

Service revenue growth outpaced merchandise by more than 10 points in the first quarter, driven by a 550-basis-point increase in attachment rate. Our newer service offerings, including post-repair extended service agreements are performing well. As merchandise sales improve, services will also benefit, especially from engagement rings, which have more than 80% in-store attachment.

第一季度，服務收入增幅超過商品收入增幅 10 個百分點，這得益於附加率增加 550 個基點。我們新推出的服務產品（包括維修後延長服務協議）表現良好。隨著商品銷售的改善，服務也將受益，尤其是訂婚戒指，其購買率超過 80% 是在店內購買。

Turning to my final takeaway for this quarter, our flexible operating model and strong free cash flow conversion are driving meaningful impact to our adjusted diluted EPS. Recall that we've generated more than $600 million in pro forma free cash flow in each of the last four years, driven by operating margin expansion of approximately 400 basis points to pre-pandemic. This provided the dry powder to reduce our debt outstanding by approximately 70% since fiscal ‘20 to date.

談到本季的最後一個要點，我們靈活的營運模式和強勁的自由現金流轉換正在對我們的調整後攤薄每股收益產生有意義的影響。回想一下，在過去四年中，我們每年都產生了超過 6 億美元的預期自由現金流，這得益於營業利潤率較疫情前擴大了約 400 個基點。這為我們減少了自 20 財年至今約 70% 的未償還債務提供了有力支持。

We increased our EPS guidance in April by 9% to 10%, reflecting the redemption of preferred shares. This will continue to be a positive impact into fiscal ‘26, as redemption of the preferreds will reduce our share count by 8.2 million shares from the end of fiscal 2024. We continue to expect strong free cash conversion. With our balance sheet now in great shape, we will focus excess liquidity on investing in the business, returning significant capital to shareholders, and leveraging opportunistic M&A in order to drive shareholder value.

我們將 4 月的每股盈餘預期上調了 9% 至 10%，以反映優先股的贖回。這將持續對 26 財年產生正面影響，因為優先股的贖回將使我們的股票數量從 2024 財年末開始減少 820 萬股。我們繼續期待強勁的自由現金轉換。由於我們的資產負債表目前狀況良好，我們將把多餘的流動性集中在業務投資上，向股東返還大量資本，並利用機會性併購來推動股東價值。

To summarize, the three key takeaways for today are, first, we delivered on our commitments again this quarter. Second, we are on track to see an inflection to positive same store sales in the second half of this year. And third, our flexible operating model is driving EPS growth through higher margins and strong free cash flow.

總而言之，今天的三個關鍵要點是：第一，本季我們再次履行了承諾。其次，我們可望看到今年下半年同店銷售額轉為正成長。第三，我們靈活的營運模式透過更高的利潤率和強勁的自由現金流推動每股收益成長。

With that, I'll turn it over to Joan

接下來，我會把話題轉給瓊

Thanks, Gina, and good morning, everyone. Revenue for the quarter was $1.5 billion, just above the midpoint of our guidance. Same-store sales were down 8.9% to last year, including approximately two points of pressure from the digital banners as expected. This also reflects improvements in March and April from the slower start we saw in February.

謝謝，吉娜，大家早安。本季營收為 15 億美元，略高於我們預期的中位數。同店銷售額較去年同期下降 8.9%，其中數位橫幅帶來的壓力約為兩個百分點，這一點符合預期。這也反映了 3 月和 4 月較 2 月開局較慢的狀況有所改善。

We were able to largely hold ATV even with continued heightened promotions in our industry as North America declined just 1.6% to last year. Loose Stone saw the largest decline in ATV, which disproportionately impacts Jared, Diamonds Direct and our digital banners. While finished products maintained ATV through branding and product innovation, traffic was down low-single-digits, services grew 1.3% reflecting an increased attachment rate and pricing on ESAs.

儘管我們行業的促銷活動不斷加強，但我們基本上能夠保持 ATV 不變，因為北美市場比去年僅下降了 1.6%。Loose Stone 的 ATV 降幅最大，這對 Jared、Diamonds Direct 和我們的數位橫幅產生了嚴重影響。雖然成品透過品牌和產品創新保持了 ATV，但流量下降了個位數，服務成長了 1.3%，反映了 ESA 的附加率和定價的提高。

We continue to develop training and technology improvements that our jewelry consultants use to educate customers on the lifetime value of our service offerings. With an in-store bridal attachment rate over 80%, we will see tailwinds from the engagement recovery and we see significant opportunity to further build on the current fashion attachment rate of approximately 40%.

我們將繼續進行培訓和技術改進，以便我們的珠寶顧問能夠讓客戶了解我們服務的終身價值。隨著店內婚紗購買率超過 80%，我們將看到訂婚率復甦帶來的順風，並且我們看到在目前約 40% 的時尚購買率基礎上進一步提升的巨大機會。

We delivered gross margin of $572 million this quarter, or approximately 38% of sales in line with the prior year on lower revenue. Adjusted merchandise margin expanded by 100 basis points, led by growth in services and product newness, including expansion of lab-grown diamonds within fashion, but was offset by deleveraging of occupancy costs on lower sales.

本季我們的毛利為 5.72 億美元，約佔銷售額的 38%，與去年同期相比持平，但營收有所下降。調整後的商品利潤率擴大了 100 個基點，主要原因是服務和產品新穎性的成長，包括時尚領域實驗室培育鑽石的擴張，但被銷售額下降導致的佔用成本去槓桿化所抵消。

Turning to SG&A, our adjusted expense of $515 million was $9 million lower than last year, even with increased marketing spend from Mother's Day. Adjusted SG&A was 34% of sales, or 270 basis points higher than last year, as we deleveraged fixed costs on lower revenue.

談到銷售、一般及行政費用，我們的調整後支出為 5.15 億美元，比去年低 900 萬美元，儘管母親節增加了行銷支出。調整後的銷售、一般及行政費用佔銷售額的 34%，比去年高出 270 個基點，因為我們在收入較低的情況下降低了固定成本的槓桿率。

Adjusted operating income was $58 million for the quarter, or 4% of sales and at the high-end of our guidance expectations. Adjusted EPS for the quarter was $1.11 per diluted share. With the redemption of half of the preferred shares and the net shares settlement agreement, we averaged 48 million fully diluted shares this quarter, a reduction of 10% from the end of fiscal ‘24.

本季調整後營業收入為 5,800 萬美元，佔銷售額的 4%，達到我們預期的高點。本季調整後每股收益為 1.11 美元。隨著一半優先股的贖回和淨股份和解協議的達成，我們本季平均完全攤薄股份為 4,800 萬股，較 24 財年末減少 10%。

Turning to inventory, we ended the quarter at $2 billion, down 9% to last year in line with revenue, even while investing in additional new products. We're optimizing the pace at which we take markdowns and are strategically using clearance to reduce inventory levels of less productive and lower-margin products in order to bring in higher-margin, more relevant merchandise.

談到庫存，儘管我們投資了更多新產品，但本季末的庫存為 20 億美元，比去年同期下降 9%，與收入持平。我們正在優化降價的速度，並策略性地使用清倉來減少生產力較低和利潤較低的產品的庫存水平，以便引進利潤更高、更相關的商品。

Turning to leverage, we ended the quarter with gross debt to adjusted EBITDA at 2.2 times turns, with net debt to adjusted EBITDA approximately flat, which reflects the preferred share redemption in April. We will retire our unsecured senior debt in the coming days, and we have the liquidity to address the remaining preferred shares this year. These efforts on our balance sheet have been noted by recent ratings upgrades by both S&P and Fitch. While we are on track to have zero debt in the coming months, we believe a modest amount of debt in our capital structure is the most efficient way to drive returns for our shareholders.

談到槓桿率，本季末我們的總負債與調整後 EBITDA 比率為 2.2 倍，淨負債與調整後 EBITDA 之比基本持平，這反映了 4 月優先股的贖回。我們將在未來幾天償還無擔保優先債務，我們有足夠的流動資金來處理今年剩餘的優先股。標準普爾和惠譽最近都提升了我們的資產負債表評級，這都表明我們在資產負債表上做出了努力。雖然我們預計在未來幾個月內實現零債務，但我們認為，資本結構中適度的債務是推動股東回報的最有效方式。

Funded debt is also required to maintain a public credit rating, which is important to provide flexibility in the future. As such, we will explore options in the market this year to lower our weighted average cost of capital, boost dry powder for opportunistic investments, and return excess cash to shareholders, all while remaining well below our leverage targets. Any amount borrowed will be modest and materially lower than where we ended the year in fiscal ‘24.

融資債務還需要維持公共信用評級，這對於提供未來的靈活性非常重要。因此，我們今年將探索市場上的選擇，以降低我們的加權平均資本成本，增加機會性投資的資金，並將多餘的現金返還給股東，同時保持遠低於我們的槓桿率目標。任何借款金額都將是適度的，並且大幅低於我們在 24 財年末的金額。

On fleet optimization, we closed 23 stores this quarter, primarily in our Ernest Jones banner. We also materially reduced our overhead costs in the UK going forward. Both were part of our previously announced efforts to improve the performance and margins of our UK business. We remain on track to open 20 to 30 stores and renovate approximately 300 existing stores this year.

在門市優化方面，本季我們關閉了 23 家門市，主要是 Ernest Jones 旗下的門市。我們也大幅削減了英國未來的管理費用。這兩項舉措都是我們先前宣布的提高英國業務業績和利潤率的努力的一部分。我們仍計劃今年開設 20 至 30 家門市，並翻新約 300 家現有門市。

Looking to guidance, we expect second quarter revenue in the range of $1.46 billion to $1.52 billion with same-store sales down in the range of 6% and 2%, a material improvement from the first quarter. We believe that engagements will continue to improve in the second quarter with some AUR pressure in Loose Stone. We expect flat to higher gross margins with similar SG&A deleverage, compared to the first quarter. We expect adjusted operating income between $50 million and $75 million and adjusted EBITDA between $98 million to $123 million.

展望未來，我們預計第二季營收將在 14.6 億美元至 15.2 億美元之間，同店銷售額將下降 6% 至 2%，較第一季大幅改善。我們相信，第二季的參與度將繼續改善，而 Loose Stone 的 AUR 仍將承受一些壓力。我們預計，與第一季相比，毛利率將持平或上升，銷售、一般及行政費用去槓桿率也將類似。我們預計調整後的營業收入在 5,000 萬美元至 7,500 萬美元之間，調整後的 EBITDA 在 9,800 萬美元至 1.23 億美元之間。

We are reaffirming our full-year guidance today. However, there are two potential impacts we are watching. First, the potential early redemption of further outstanding preferred shares may lower our diluted share count and reduce our preferred dividends this year, both of which would boost our adjusted diluted EPS.

我們今天重申我們的全年指引。然而，我們正在關注兩種潛在影響。首先，進一步提前贖回未償還的優先股可能會降低我們今年的稀釋股數並減少優先股股息，這兩者都會提高我們調整後的稀釋每股收益。

Second, heightened competitive discounting may pressure margins into the back half more than we expected at the beginning of the year. We are monitoring the potential impact of this discounting to our gross margins for the full year while we work to mitigate that impact in the second half of fiscal ‘25 through assortment architecture and balanced promotional strategies.

其次，競爭性折扣的加劇可能會對下半年的利潤率造成比我們年初預期更大的壓力。我們正在監測此次折扣對我們全年毛利率的潛在影響，同時我們將努力透過產品組合架構和平衡的促銷策略在 25 財年下半年減輕這種影響。

We continue to expect engagement incidents to be up 5% to 10% for the year. And we also continue to expect to spend $160 million to $180 million in capital expenditures.

我們繼續預計今年的交戰事件將上升 5% 至 10%。我們也將繼續預計花費 1.6 億至 1.8 億美元的資本支出。

Before we move on to Q&A, I'd like to thank our Signet team in our stores, in our support centers, our repair shops, and in our distribution centers. Thank you for your commitment to excellence in the execution of our strategy and your devotion to our purpose of inspiring love. Your efforts are a steady source of inspiration for all of us.

在我們進入問答環節之前，我想感謝我們商店、支援中心、維修店和配送中心的 Signet 團隊。感謝您致力於卓越地執行我們的策略，並致力於激發愛心的宗旨。您的努力是我們所有人的穩定靈感來源。

Operator, let's now go to questions.

接線員，現在我們來提問。

(Operator Instructions) Lorraine Hutchinson, Bank of America.

（操作員指示）美國銀行洛林·哈欽森（Lorraine Hutchinson）。

This is Melanie, on Lorraine. I just wanted to touch on the margins a bit specifically for 2Q. They did look a little different than what was expected. So can you just break that apart a little bit more? And then what gives you the confidence in getting those better for the second half? Thanks.

我是洛琳的梅蘭妮。我只是想稍微談談第二季的獲利狀況。它們看起來確實與預期的有點不同。那你能再進一步分解嗎？那麼什麼讓您有信心在下半場取得更好的成績呢？謝謝。

Well, thanks, Melanie. The margins for Q2 are impacted by a few things. One, higher marketing expense, which we've seen be impactful for us and improved ROAs and just return on ad spend, so that's number one. We see higher staffing costs, as well as we are seeing some deleverage on our fixed costs within SG&A. We would expect that to abate somewhat over the back half of the year as we inflect to positive comps.

好吧，謝謝你，梅蘭妮。第二季的利潤率受到一些因素的影響。第一，更高的行銷費用，我們已經看到這對我們產生了影響，並且提高了 ROA 和廣告支出回報率，所以這是第一點。我們看到員工成本上升，同時銷售、一般及行政開支中的固定成本也出現了一定程度的去槓桿。我們預計，隨著我們轉向正面的比較，這種現象將在下半年減弱。

Thanks. And then just to follow-up on that a bit, just, can you talk about the promotionality that you're seeing in the industry? I know you said it's heightened just what you're doing to respond to that and how you see that trending for the year. Thanks.

謝謝。然後稍微跟進一下，您能談談您在業界看到的促銷活動嗎？我知道您說過，這凸顯了您對此採取的應對措施以及您如何看待今年的趨勢。謝謝。

Sure. So we've continued to see a highly promotional category. Independent jewelers were significantly over-inventoried for the last 18 months. That has been now getting back to a more normalized level. So we'd hope to see the competitive environment get back to a level of normalcy potentially in Q2 and Q3, although we haven't accounted for that in our plans.

當然。因此，我們繼續看到高度促銷的類別。過去 18 個月，獨立珠寶商的庫存嚴重過剩。現在已恢復到更正常的水平。因此，我們希望看到競爭環境在第二季和第三季恢復到正常水平，儘管我們還沒有在計劃中考慮到這一點。

And I think what we've been doing, I really feel great about. So we use our scale in newness to really find great values as we are buying gemstones and metals and then offer those great values to our customers in our fashion assortment. That's been one of the key drivers of our fashion assortment, which was a great story in the first quarter, up nearly 500 basis points in the last three months, compared to Q4 in February.

我認為我們所做的事情讓我感到非常高興。因此，我們在購買寶石和金屬時，利用新鮮度的尺度來真正找到巨大的價值，然後在我們的時尚系列中將這些巨大的價值提供給我們的客戶。這是我們時尚產品系列的主要驅動力之一，第一季的業績表現優異，與 2 月的第四季相比，過去三個月成長了近 500 個基點。

A second strategy for us is our loyalty program. We're increasingly offering targeted value opportunities to the right customers at the right time. That allows us to reduce broad-scale discounting and instead be much more targeted. So we have a number of strategies that we've put in place that we think help us to have the right level of promotionality in this kind of a challenged environment. And hopefully, we'll see competition also utilize more healthy strategies.

我們的第二個策略是忠誠度計劃。我們持續在適當的時間為合適的客戶提供有針對性的價值機會。這使我們能夠減少大規模的折扣，並更有針對性。因此，我們制定了一系列策略，我們認為這些策略可以幫助我們在這種充滿挑戰的環境中保持適當的促銷水平。我們希望看到競爭對手也能採取更健康的策略。

Great. Thank you.

偉大的。謝謝。

Paul Lejuez, Citigroup.

花旗集團的 Paul Lejuez。

Curious as you're seeing engagements recover, can you talk about the composition of what customers are buying between natural versus lab-created? And is the mix any different than what you expected? And then second, can you just talk about the pricing in both natural and lab-created on both the engagement piece of the business, as well as the fashion piece? Thank you.

您很好奇，看到交易量有所恢復，您能談談顧客購買的天然產品和實驗室製造產品的結構嗎？這種混合和你預期的有什麼不同嗎？其次，您能否談談業務參與部分和時尚部分的天然和實驗室製造的定價？謝謝。

Hey, Paul, thanks for your question. So in engagement, we still are seeing far and away a choice of natural diamonds by customers for engagement. Lab created has been a good choice for more price-conscious customers. We've had a challenge consumer environment for a while now. And so, I think that it has been a good innovation in that context for people who can't afford to get the size and clarity of stone they'd like in natural. And so we continue to offer that choice to customers both in our finished product and in our loose diamonds. We have continued to be able to leverage lab created as a trade-up opportunity in engagement, still with a higher AUR on LCD than we have on natural.

嘿，保羅，謝謝你的提問。因此在訂婚方面，我們仍然看到顧客普遍選擇天然鑽石作為訂婚戒指。對於更重視價格的顧客來說，Lab Create 是個不錯的選擇。一段時間以來，我們一直面臨充滿挑戰的消費環境。因此，我認為，對於那些買不起他們想要的天然寶石尺寸和清晰度的人來說，這是一個很好的創新。因此，我們將繼續向客戶提供成品鑽石和裸鑽的選擇。我們能夠繼續利用實驗室創造的機會來提高參與度，並且 LCD 的 AUR 仍然高於自然的。

But I think fashion is the real interesting story here. So one of the things I said in the prepared remarks is that we grew our LCD fashion assortment 14% in the first quarter and that's at an ATV, more than twice the average ATV of fashion. So it's really a trade-up opportunity in fashion. At the general price points that we're selling, it's very expensive to have natural diamonds in fashion product, but LCD gives us an opportunity to add bling to those fashion pieces and then help consumers trade up into a more expensive and sometimes a more beautiful piece. Obviously, that's at a very healthy margin also for Signet.

但我認為時尚才是這裡真正有趣的故事。因此，我在準備好的發言中提到的一件事是，我們在第一季的 LCD 時尚產品組合成長了 14％，這是平均銷售額 (ATV)，是時尚產品平均銷售額 (ATV) 的兩倍多。所以這確實是一個時尚領域的升級機會。以我們銷售的一般價位而言，時尚產品中使用天然鑽石是非常昂貴的，但 LCD 使我們有機會為這些時尚產品增添光彩，然後幫助消費者購買更昂貴、有時更漂亮的產品。顯然，這對 Signet 來說也是一個十分可觀的利潤。

So little bit of a different story on both. But our diamond strategy has worked very effectively both in engagement and in fashion. And we're seeing continued opportunity.

兩者的故事略有不同。但我們的鑽石策略無論在訂婚還是時尚方面都非常有效。我們看到的機會還在持續。

Yes. And then just on the pricing, are you seeing year-over-year declines in natural or lab created?

是的。那麼就定價而言，您是否看到天然或實驗室製造的價格比去年同期下降？

Yes. So it's our expectation that the pricing on lab-created continues to decline. There's significant availability. The production has become much more efficient. Costs have come down. Retails have come down at a slower rate, but still are pressured. That's why the need for a good strategy on it. It matters, which is what we've put in place.

是的。因此，我們預計實驗室製造的價格將繼續下降。有大量可用資源。生產變得更有效率。成本已經下降了。零售業下降速度有所放緩，但仍面臨壓力。這就是為什麼需要有一個好的策略。這很重要，這就是我們已經實施的。

And as I said, we've been able to continue to use lab created as a way to drive a higher AUR, even though the cost per carat has come down to some extent. In natural, we see that getting to a normalized level. There has been pressure in general in the category due to heavy discounting, primarily by independent jewelers.

正如我所說的，即使每克拉的成本已經下降，我們仍然能夠繼續使用實驗室製造的鑽石來提高 AUR。自然地，我們看到它達到了正常化的水平。由於大幅折扣（主要是獨立珠寶商的折扣），該類別總體上面臨壓力。

Thank you. Good luck.

謝謝。祝你好運。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

富國銀行的艾克·博魯喬（Ike Boruchow）。

Two questions from me. Maybe first for Gina. Just you give some color around May and you give some interesting details. Gina, could you just tell us specifically how was Mother's Day, how was the Mother's Day selling season overall for you guys? And just maybe quarter-to-date, where are you guys running relevant to that guide?

我有兩個問題。對吉娜來說這可能是第一次。只需在五月左右添加一些色彩並提供一些有趣的細節。吉娜，您能具體告訴我們母親節過得怎麼樣嗎？也許就本季而言，你們的情況與該指南有何關聯？

And then, Joan, could you just to really simplify it for us, just on the share count and the preferred dividends, like what diluted share count are we using for the second quarter and preferreds, as well as I don't know if you can give Q3 and Q4, but exiting the year, the diluted share count would also be helpful. Just trying to make sure that we all get the models straight. Thank you.

然後，瓊，你能否為我們真正簡化一下，僅關於股票數量和優先股股息，例如我們在第二季度和優先股中使用的稀釋股票數量，以及我不知道你是否可以給出第三季度和第四季度的數據，但在年底，稀釋股票數量也會有所幫助。只是想確保我們都正確理解模型。謝謝。

Yeah. Hi, Ike. And thanks a lot for your question. I think probably the keyword for this call is momentum. I mean, that is the word that the Signet team is resonating with from the C-Suite to every store team member. If you recall, February was a pretty sluggish start to the quarter, not only for Signet, but all of retail. We started to see the business come back post-Valentine's Day with some late Valentine's Day shopping. We saw momentum through March and April and May and Mother's Day actually were in the top half of our Q2 guide.

是的。你好，艾克。非常感謝您的提問。我認為這次通話的關鍵字可能是動力。我的意思是，這是 Signet 團隊從高階主管到每位商店團隊成員都一致認同的字。如果你還記得的話，2 月是本季的一個相當低迷的開局，不僅對於 Signet 而言，對於整個零售業而言都是如此。我們開始看到生意在情人節後隨著一些較晚的情人節購物而回升。我們在三月、四月和五月看到了發展勢頭，而母親節實際上位於我們第二季度指南的上半部分。

So significant momentum in the business that we are really leaning into that is broad scale. So significant improvement in engagement units, fashion accelerating significantly versus where we were in the fourth quarter and February over the last three months, with May being at the high end of that acceleration. So we're seeing a lot of momentum in the business right now, and we're leaning into what's working. So one of those things is newness.

我們真正傾向的業務發展動能十分巨大，而且規模龐大。因此，參與度單位有了顯著改善，與過去三個月的第四季和二月相比，時尚業務顯著加速，而五月處於加速的最高端。因此，我們現在看到業務中有很多發展勢頭，並且我們傾向於採用有效的方法。其中之一就是新穎性。

Our investment in consumer insights and data analytics not only allowed us to predict this COVID lull in engagements that is finally abating and be more prepared for that than anyone in the industry, but it also allows us to predict customer trends. We're seeing a very value-conscious customer right now and so we are targeting sharp price points with value-engineered product that offers an incredible value. And with our scale, a value-conscious customer actually plays to our strength.

我們對消費者洞察和數據分析的投資不僅使我們能夠預測最終正在減弱的新冠疫情低迷，並比業內任何人都對此做好更充分的準備，而且還使我們能夠預測客戶趨勢。我們現在看到的客戶非常注重價值，因此我們以具有令人難以置信的價值的價值工程產品為目標，設定了明確的價格點。而且憑藉我們的規模，注重價值的客戶實際上能夠發揮我們的優勢。

So we're leaning into what's working to keep driving that momentum. The second quarter with our guide is shaping up to be our fifth consecutive quarter of same-store sales improvement. So we have a good trend going here and we're leaning into what's working in Q2.

因此，我們正在努力尋找有效的措施來繼續推動這一勢頭。根據我們的指導，第二季可望成為我們連續第五個季度實現同店銷售成長。因此，我們現在有一個很好的趨勢，我們正傾向於第二季的運作方式。

Ike, with respect to the diluted share count, Q1 was 48 million shares. For the full year, we expect the view to be 46.3 million shares. That's what's considered in the guidance that we've given for the full year.

艾克，就稀釋股數而言，第一季的稀釋股數為 4,800 萬股。我們預計全年銷售量將達到 4,630 萬股。這就是我們在全年指引中所考慮的。

Can you help on the second quarter as well?

您也可以對第二季提供協助嗎？

Just from our view, I would think about it as 46 million shares throughout the balance of the year and stay tuned as I mentioned in my shared remarks that any earlier redemptions then the retirement date would impact that number.

僅從我們的角度來看，我會將其視為全年餘額的 4600 萬股，並請繼續關注，因為我在分享的評論中提到，任何早於退休日期的贖回都會影響該數字。

Great. Very helpful. Thank you.

偉大的。非常有幫助。謝謝。

Mauricio Serna, UBS.

Mauricio Serna 的瑞銀。

First, I would like to just follow-up on that commentary about Mother's Day. Could you talk about what sales have looked like post-Mother's Day? Just, it seems like, yes, it was a good event, but just trying to understand whether the momentum has carried. I know you mentioned that, but just wanted to make sure about it. And then on the Q2 sales guidance, what kind of engagement volumes are considered in the Q2 sales guidance? Thank you.

首先，我想跟進一下有關母親節的評論。能談談母親節後的銷售狀況嗎？只是，看起來，是的，這是一個很好的活動，但只是想知道這種勢頭是否能夠持續下去。我知道您提到過這一點，但我只是想確認一下。那麼，在第二季銷售指引中，我們考慮了哪些參與量呢？謝謝。

Hi, Mauricio. So as I said in answer to Ike's question, Mother's Day, week and May, overall we're in the top half of our Q2 guide. So a strong month. We continue to see strong sales in our fashion business. Our newness sell-through was up 25% versus year ago, and it's a significantly higher percent also of our receipts. So Joan talked in her remarks about the great job that our teams have done managing inventory. Despite all the newness that we've launched in, our inventory was down 9% in the quarter.

你好，毛里西奧。因此，正如我在回答艾克的問題時所說的那樣，母親節當週和五月，總體而言，我們處於第二季度指南的上半部分。這是一個強勁的月份。我們的時尚業務持續保持強勁銷售勢頭。我們的新品銷售量比去年同期成長了 25%，占我們營收的百分比也顯著提高。瓊在演講中談到了我們的團隊在庫存管理方面所做的出色工作。儘管我們推出了許多新產品，但本季我們的庫存仍然下降了 9%。

And if you look pre-pandemic, I mean, it's down significantly. So we're in a very healthy place to be able to lean into particular items that are working to spread those quickly across our fleet. We use our ship-from-store capabilities so that every jewelry consultant across the country can access those new items from another new store if they sold out in their own store. So that is, I think, something we're really leaning into at this point in time. And as I mentioned, we think it's a competitive advantage for us, because of our scale and the way we construct new items in a value-conscious environment like this to really have sharp price points and a great value for our customers.

如果你看一下疫情之前的情況，你會發現它已經大幅下降了。因此，我們目前處於非常健康的狀態，能夠依靠特定的項目，將這些項目迅速推廣到我們的整個車隊。我們利用從商店發貨的功能，這樣全國各地的每位珠寶顧問都可以從另一家新商店獲得他們自己商店售罄的新產品。所以我認為，這是我們目前真正傾向的事情。正如我所提到的，我們認為這是我們的競爭優勢，因為我們的規模以及我們在這種注重價值的環境中建立新產品的方式，能夠真正為我們的客戶提供準確的價格點和巨大的價值。

The other super interesting thing on fashion is how our loyalty program is kicking in. So we only launched it a couple of years ago, but we are growing it quickly. We had 25% new users come into the loyalty program just in Q1, and we had a 50% increase in the number of loyalty members, the active loyalty members who made a purchase.

時尚方面另一件非常有趣的事情是我們的忠誠度計劃如何發揮作用。雖然我們幾年前才推出它，但我們正在迅速發展它。僅在第一季度，就有 25% 的新用戶加入了忠誠度計劃，忠誠度會員（進行購買的活躍忠誠度會員）的數量增加了 50%。

So we're really now able to use this combination of our consumer data platform, our personalized marketing content and messaging to laser target our customers and provide them opportunities or visibility to items that they might be interested to buy. And that is one of the things that's helping to drive our fashion purchases. So it's another thing that we're really leaning into to achieve that positive inflection to same-store sales that we talked about.

因此，我們現在能夠真正利用我們的消費者數據平台、個人化行銷內容和資訊來精準定位我們的客戶，並為他們提供他們可能有興趣購買的商品的機會或可見性。這也是推動我們購買時尚產品的因素之一。因此，這是我們真正傾向於實現我們談到的同店銷售額的積極變化的另一件事。

And with respect to the bridal question. In Q2, we would expect, excluding the digital banners, as we have talked about, we would expect up mid-single-digit to flat in terms of bridal unit selling. Once again, that's excluding digital. And it's what this reflects is the continued momentum and the recovery of engagements throughout the fiscal year. And as we said, we expect the back half of the fiscal year to inflect positive on the high end of our guidance.

關於新娘的問題。在第二季度，我們預計，不包括數位橫幅，正如我們已經討論過的，新娘服裝的銷量將出現中等個位數增長至持平。再次強調，這不包括數字。這反映出整個財年持續的動能和業務的復甦。正如我們所說，我們預計本財年下半年將對我們的預期上限產生正面影響。

Sorry, I just want to make sure this was up mid-single digits to flat for, in total bridal units?

抱歉，我只是想確保新娘總數的成長幅度在個位數中間到持平之間？

For engagement units.

對於交戰單位。

Okay. Got it. And then --

好的。知道了。進而--

Including digital.

包括數字的。

Digital. And then just quick follow-up on the merchandise margin. Could you talk about what kind of trends you saw, like on brick and mortar versus online? And one thing just to understand, on the last commentary on the risk to the guide, are you expecting higher promotions year-over-year? And why would that be? It seems like independent jewelers, like independent inventory, should be getting in better shape, shouldn't they? Thank you.

數位的.然後快速跟進商品利潤。可以談談你看到了什麼樣的趨勢嗎，例如實體店和線上的趨勢？還有一件事要了解，關於指南風險的最後一則評論，您是否預計逐年會有更高的促銷活動？為什麼會這樣呢？看起來獨立珠寶商，就像獨立庫存一樣，應該狀況變得更好，不是嗎？謝謝。

Yes. Versus what Gina had said. Yes, the inventories are in better shape, but I think in general, the consumer is cautious and our guidance incorporates that for the full year. We are cognizant of the promotional environment overall in the industry and in retail. And so we are prepared for that within our guidance. And we are working through a lot of the great newness that the team has brought forward for our customers.

是的。與吉娜所說的相反。是的，庫存狀況更好，但我認為總體而言，消費者比較謹慎，我們的全年指導也考慮到了這一點。我們了解產業和零售業的整體促銷環境。因此，我們在指導範圍內為此做好了準備。我們正在努力實現團隊為客戶帶來的許多全新事物。

That's helping us to mitigate potential promotion impact, as well as services as it continues to ramp up, Mauricio, is a key lever for us in our merchandise margin expansion. We saw that in Q1 and we expect to see that for the remainder of the year. So it's merchandise, new merchandise, add strong margins, services and the influence of LCD within the fashion assortment that Gina mentioned is also a contributor for us within the merchandise margin.

這有助於我們減輕潛在的促銷影響，隨著服務的不斷提升，Mauricio 是我們擴大商品利潤率的關鍵槓桿。我們在第一季就看到了這一點，預計在今年剩餘時間內也會發生這種情況。因此，它的商品，新產品，增加了強勁的利潤率，服務以及 Gina 提到的時尚系列中 LCD 的影響也是我們商品利潤率的貢獻者。

Between stores and e-commerce, not a meaningful difference in merchandise margin. As you know, we have shipped from store and we were able to really reduce our clearance inventories, which have tended to be more online in prior years. But we are in a very healthy place in terms of inventory hygiene and clearance, so we don't really see a significant difference between the two channels.

實體店和電商之間，商品利潤率並沒有太大差異。如您所知，我們已經從商店發貨，並且我們能夠真正減少清倉庫存，而前幾年清倉庫存往往更多地集中在線上。但就庫存衛生和清倉而言，我們的狀況非常良好，因此我們並沒有看到這兩個管道之間有顯著差異。

The one other thing I would say on promotionality, Mauricio, is, remember that it is not our strategy to be the promotion leader in the category. We follow and we remain competitive. The way we win is on the tenured excellence of our store team who provide great counsel and advice to our customers, our winning brand equities, our ability to innovate quickly, and the investments in competitive advantage that we've made in digital and data. So we don't lead promotionality, but we do stay competitive to make sure that we can close sales and bring customers into our Signet family to drive lifetime value.

毛里西奧，關於促銷，我還想說一件事，請記住，我們的策略不是成為該類別的促銷領導者。我們遵循並保持競爭力。我們成功的關鍵在於我們商店團隊的長期卓越表現，他們為我們的客戶提供出色的諮詢和建議，我們的成功品牌資產，我們快速創新的能力，以及我們在數字和數據方面所做的競爭優勢投資。因此，我們不主導促銷，但我們保持競爭力，以確保我們能夠完成銷售並將客戶帶入我們的 Signet 大家庭，以推動終身價值。

Understood. Thanks so much and best of luck.

明白了。非常感謝，祝你好運。

Thank you.

謝謝。

Jim Sanderson, Northcoast Research.

吉姆·桑德森（Jim Sanderson），Northcoast Research。

I wanted to go back to the commentary on average transaction value being down slightly in the first quarter. What is included in your guidance for the year? How should that ATV progress going forward given the momentum you're experiencing today?

我想回顧一下關於第一季平均交易價值略有下降的評論。今年的指導包含哪些內容？鑑於您目前所處的勢頭，那輛 ATV 下一步該如何發展？

Yes, we would expect to see a similar ATV or average transaction value for the balance of the year. In terms of the comp performance of ATV, what Gina talked about, Jim, is really critical in terms of driving LCD into our fashion product. We are seeing a nice performance in bridal continue to recover. So between those two factors, we really expect to see an ATV that we're able to hold a similar level as we saw.

是的，我們希望看到今年餘下時間的 ATV 或平均交易價值出現類似的變化。就 ATV 的綜合性能而言，吉姆，吉娜談到的內容對於將 LCD 引入我們的時尚產品至關重要。我們看到婚紗市場表現持續回升。因此，根據這兩個因素，我們確實希望看到一款能夠保持與我們所見類似水平的 ATV。

Okay, okay. So maybe possibly a slight decline, but very, very modest. Right way to look at it.

好的，好的。因此，可能會出現輕微下降，但幅度非常非常小。正確的看待方式。

Slight decline, yes.

是的，略有下降。

And does that include an assumption that you'll maintain those 80% and 40%, attach rates on the services warranties or the engagement?

這是否包括這樣的假設：您將維持服務保固或約定的 80% 和 40% 的附加費率？

Great question. Yeah, it's a great question. Yes, definitely in bridal, and we see opportunity with the engagement tailwind to continue to drive revenue growth. But in fashion, with the 40% overall attachment rate, we see opportunity there as price points increase with the infusion of LCD in fashion. We would expect to see an attachment rate increase. Just to make a note that services is not included in our ATV count, but it is a considerable driver for us as we progress through the year.

好問題。是的，這是一個很好的問題。是的，絕對是在婚禮領域，我們看到訂婚帶來的順風機會，可以繼續推動收入成長。但在時尚領域，由於整體附著率達到 40%，隨著 LCD 融入時尚領域，價格也會跟著上漲，我們看到了商機。我們預計附著率將會增加。需要注意的是，服務不包括在我們的 ATV 數量中，但隨著我們全年的進步，它對我們來說是一個重要的驅動力。

Okay, thank you for that. Just another follow-up question on lab-created diamonds. Did you provide an estimate of what your sales mix for lab-grown diamonds in the engagement category is in bridal?

好的，謝謝你。這只是關於實驗室製造鑽石的另一個後續問題。您是否對婚禮訂婚類別中實驗室培育鑽石的銷售組合進行了估算？

No, we didn't. We continue to offer consumers choice, both in finished engagement rings, as well as loose diamonds as a choice. We see a lot of consumers who have a budget to be able to afford it, leaning into natural, which has the specialness, rarity and traditionally holds its value over time. But we didn't provide any kind of a mix.

沒有。我們將繼續為消費者提供選擇，包括成品訂婚戒指以及裸鑽。我們看到許多有預算的消費者傾向於購買天然產品，因為天然產品具有特殊性、稀有性並且傳統上可以隨著時間的推移保持其價值。但我們並沒有提供任何類型的混合。

Okay, last question for me. I think the De Beers announced that they will be partnering with you in the United States in the back half of the year with a major training initiative, as I understood it. So I'm wondering, what do you expect from De Beers as far as their training incrementally to your sales team that you haven't been able to offer the US consumer to date? Thank you.

好的，這是我的最後一個問題。據我了解，戴比爾斯宣布他們將在今年下半年與你們在美國合作一項大型培訓計畫。所以我想知道，您對戴比爾斯有什麼期望，例如對他們的銷售團隊進行逐步培訓，而到目前為止您還無法為美國消費者提供這些培訓？謝謝。

Yes. So we're very excited about partnering with De Beers. It's a great thing when the world's largest specialty retail jeweler of diamonds and the world's largest producer of diamonds get together, we have already a relationship with them, obviously, because we're one of very few retail site holders who are vertically integrated and buy rough diamonds directly from the mine. So this is really an extension of that partnership, and it's a return to what I would say was the historical approach of helping customers to understand the specialness, uniqueness, and allure of natural diamonds.

是的。因此，我們非常高興與戴比爾斯合作。當世界上最大的鑽石專業零售珠寶商和世界上最大的鑽石生產商走到一起時，這是一件很棒的事情，顯然我們已經與他們建立了關係，因為我們是極少數垂直整合並直接從礦場購買鑽石原石的零售站點持有者之一。所以這其實是這種合作關係的延伸，也是對我所說的歷史方法的回歸，即幫助客戶了解天然鑽石的特殊性、獨特性和魅力。

I mean, what forms over a billion years in the center of the earth's core, in the tubes of prehistoric volcanoes, is a very rare and special thing with natural diamonds. And so we thought it would be a great time to remind our store teams about that specialness, to share with them some of the excitement that I myself saw when I was in Botswana, seeing the wonderful improvements in that economy and the life of people of that country to be able to share that with them.

我的意思是，在地核中心、在史前火山管道中經過十億年形成的天然鑽石是非常稀有和特殊的。因此，我們認為這是一個很好的時機來提醒我們的商店團隊這種特殊性，與他們分享我在博茨瓦納時親眼看到的一些令人興奮的事情，看到那個國家的經濟和人民生活發生了巨大的改善，並能夠與他們分享這些。

So it's really an educational opportunity for our teams, just like we would train and coach them on any new item that we would launch. We're treating natural diamonds almost like new item, again, like a reminder of that specialness and uniqueness. So it's a great partnership. It'll exist not only on the training front, but also on marketing to consumers. We find that one of the key questions that young consumers, especially, who are buying a diamond for the first time, are asking is what's the difference? And so having our store teams be able to clearly answer that question, and I'll also providing education directly to consumers is a goal of the partnership.

因此，這對我們的團隊來說確實是一個教育機會，就像我們對即將推出的任何新產品進行培訓和指導一樣。我們幾乎把天然鑽石當作新物品來對待，再次提醒它的特殊性和獨特性。所以這是一次很棒的合作關係。它不僅存在於培訓方面，也存在於面向消費者的行銷方面。我們發現，年輕消費者，尤其是首次購買鑽石的消費者，所問的一個關鍵問題是，它們之間有什麼不同？因此，讓我們的商店團隊能夠清楚地回答這個問題，我還將直接向消費者提供教育，這是合作的目標。

All right. Thank you.

好的。謝謝。

Dana Telsey, Telsey Group.

達娜‧特爾西 (Dana Telsey)，特爾西集團 (Telsey Group)。

Given the more cautious or discerning consumer and the promotional levels that are out there, is the promotional levels different by banner in terms of what you're seeing? And then on the newness that you're offering, how is that increased by banner? Is it different? And is the opening price points changing? How are you adjusting them in this environment? And that impact on margins? Thank you.

考慮到消費者越來越謹慎或越來越挑剔，以及現有的促銷水平，就您所看到的橫幅廣告而言，促銷水平是否有所不同？那麼，就您所提供的新穎性而言，橫幅廣告是如何增加其吸引力的呢？有什麼不同嗎？開盤價點有變動嗎？您如何在這種環境下調整它們？這對利潤有什麼影響嗎？謝謝。

Hi, Dana. Good morning. So we have pretty differentiated strategies on our banners across the board. So which customers they're targeting, how we think about average price points in our assortments, even the real estate strategy of how much on mall or off mall. So we don't say a lot about those differentiated strategies, obviously for competitive reasons.

你好，達娜。早安.因此，我們在各個橫幅廣告上都採取了相當差異化的策略。那麼，他們的目標客戶是誰，我們如何考慮產品組合的平均價格點，甚至是商場內和商場外的房地產策略。因此，我們不會過多談論這些差異化策略，顯然是出於競爭的原因。

And I think the promotional strategy would be one of those things. But what I can say is that within each banner, we've done some great consumer work to say, what are value-conscious customers for this banner looking for? So a value-conscious customer in Jared might be quite different from a value-conscious customer in Banter by Piercing Pagoda. And the price point that they're looking for would also be different, the value that they're looking for.

我認為促銷策略就是其中之一。但我可以說的是，在每一個橫幅廣告中，我們都做了一些出色的消費者工作，以了解這個橫幅廣告中註重價值的客戶在尋找什麼？因此，Jared 中註重價值的顧客可能與 Piercing Pagoda 中註重價值的顧客有很大不同。他們尋求的價格點和價值也會不同。

So we have looked at that and designed our assortment to hit price points, that we think are really right for those customers. So take gold as an example. We have done, I think, some really innovative things with a technology we call sculpted gold, which creates a very big look at a lower price point. And we're able to offer something like that at a higher end with more gold in a Jared and at a lower end with a bit less gold in a Banter by Piercing Pagoda. But it still is an innovation that's allowing us to get to a sharp price point in both of those banners.

因此，我們考慮到了這一點，並設計了符合價格點的產品組合，我們認為這些價格點對於這些客戶來說是真正合適的。以黃金為例。我認為，我們利用一種我們稱之為「雕金」的技術做了一些真正具有創新性的事情，這種技術可以以較低的價格創造出非常大的外觀。我們能夠提供類似的產品，高端的 Jared 含金量較高，而低端的 Piercing Pagoda 的 Banter 含金量稍低。但它仍然是一項創新，使我們能夠在這兩個品牌中達到合理的價格點。

Thank you.

謝謝。

Dana, to answer the newness aspect of it, we've infused newness across all of our banners, and it's a key merchandise strategy for us. And we'll be flowing newness in and importantly, as we are flowing and increasing the penetration of newness, we are reducing older inventory and getting through that in a meaningful, strategic way for our customers as we progress through the year. So balanced approach to increasing newness by taking out old inventory but really bringing forth new assortments for our customer across banners. but really bringing forth new assortments for our customer across banners.

達娜，關於新穎性的問題，我們在所有橫幅中都注入了新穎性，這是我們的一個關鍵的商品策略。我們將繼續推出新品，重要的是，隨著新品的不斷湧入和滲透，我們將減少舊庫存，並以有意義的、策略性的方式為我們的客戶解決這個問題。因此，我們採取平衡的方法來增加新鮮度，即透過清理舊庫存，同時真正為我們的客戶提供全新的產品組合。而是真正透過各種管道為客戶帶來新的產品組合。

And newness naturally can come with lower promotionality. It's new, it's hot. We're designing some of our lines with the intention that they'll sell out and so you need to get it quickly or it won't be available and that then precludes the need for discounting.

而新鮮感自然會伴隨較低的推廣性。它是新的，它是熱門的。我們在設計某些產品線時就考慮到它們會售罄，因此您需要盡快購買，否則將無法購買，這樣就不需要打折了。

Thank you.

謝謝。

And that concludes our question-and-answer session. I would like to turn it back to Gina Drosos for closing remarks.

我們的問答環節到此結束。我想請吉娜·德羅索斯作最後發言。

Before we end the call, I'd like to highlight our recently published Corporate Citizenship and Sustainability Report, which provides great insight into our purpose-led accomplishments and goals, our industry-leading standards for responsible sourcing, which we believe is a key driver of attracting and retaining younger customers in the jewelry category. Another bright spot is our doubling of the rate of recycled materials at our core banners. These are resonating with customers. The full report is now available on our website, and I hope you'll take a look at it.

在結束通話之前，我想重點介紹我們最近發布的《企業公民和永續發展報告》，該報告深入了解了我們以目的為主導的成就和目標，以及我們行業領先的負責任採購標準，我們相信這是吸引和留住珠寶類別年輕客戶的關鍵驅動力。另一個亮點是我們核心橫幅的再生材料率提高了一倍。這些都引起了顧客的共鳴。完整的報告現在已經發佈在我們的網站上，希望您能看一下。

Thank you all for joining our call this morning. Goodbye.

感謝大家參加我們今天上午的電話會議。再見。

Thank you. And ladies and gentlemen, this concludes today's conference call. Thank you all for participating. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。