Signet Jewelers Ltd (SIG) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Signet Jewelers second quarter fiscal 2025 earnings call. (Operator Instructions) Please note, this event is being recorded. 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.

早安，歡迎參加 Signet Jewelers 2025 財年第二季財報電話會議。 （操作員說明）請注意，正在記錄此事件。今天加入我們電話會議的還有投資者關係資深副總裁 Rob Ballew；吉娜·德羅索斯，執行長；財務策略和服務長 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，我想將這次會議交給投資者關係高級副總裁 Rob Ballew 先生。請繼續，先生。

Good morning. Welcome to Signet Jewelers second quarter fiscal '25 earnings conference call. 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.

早安.歡迎參加 Signet Jewelers '25 財年第二季財報電話會議。在今天的討論中，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。

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.

我們強烈建議您閱讀我們的 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、警示性語言和其他揭露資訊。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 discussion of the non-GAAP financial measures as well as a 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.

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較的 GAAP 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。

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

這樣，我就把電話轉給吉娜。

Thanks, Rob, and good morning, everyone. I'd like to first thank our Signet team for delivering another quarter of sequential same-store sales improvement and an encouraging start to the third quarter. Our team is our greatest competitive advantage and the key to our success. That's never more abundantly clear to me than at earnings time, when we have the chance to see the tangible impact of our knowledgeable, dedicated and empowered team members. I'd like to leave you with three key takeaways today.

謝謝羅布，大家早安。我首先要感謝我們的 Signet 團隊，他們的同店銷售又實現了一個季度的連續成長，並為第三季帶來了令人鼓舞的開局。我們的團隊是我們最大的競爭優勢，也是我們成功的關鍵。對我來說，這一點在盈利時最為清晰，因為此時我們有機會看到我們知識淵博、敬業且有能力的團隊成員所產生的實際影響。今天我想給大家留下三個要點。

First, we continue to see momentum in same-store sales, improving more than 5 points from the first quarter, led by strong Fashion sales to deliver results in the top half of our expectations. This sequential acceleration is both the fifth consecutive quarter of same-store sales improvement and the largest improvement we've delivered in more than two years, driven by higher levels of new and innovative merchandise as we emerge from the Engagement trough caused by COVID.

首先，我們繼續看到同店銷售的勢頭，在強勁的時裝銷售的帶動下，同店銷售比第一季度提高了 5 個百分點以上，業績達到了我們預期的上半部分。這一環比加速既是同店銷售連續第五個季度實現增長，也是我們兩年多來實現的最大改善，這是由於我們走出了新冠疫情造成的參與度低谷，新產品和創新商品水平更高，推動了這一增長。

Second, we grew merchandise margin and average transaction value or ATV as our merchandise strategy continues to drive performance in a dynamic time for the industry. Third, we are on track to deliver on our fiscal '25 guidance, our momentum has carried into Q3 with same-store sales turning positive third quarter-to-date and Engagement units now growing.

其次，我們的商品利潤率和平均交易價值（ATV）不斷增長，因為我們的商品策略在行業充滿活力的時期繼續推動業績。第三，我們預計將實現 25 財年的指導，我們的勢頭已延續到第三季度，同店銷售額第三季度迄今轉為正值，參與單位目前正在增長。

Let's go into each of these in detail. Same-store sales improved to a low single-digit decline in the second quarter, led by an acceleration in Fashion, but also with improvement in Bridal and continued strength in Services. As I mentioned last quarter, we continue to focus on new, innovative and on-trend pieces. This is a proven strategy for us in tougher macro environments, and there's been a strong response from customers. In the second quarter, we delivered a 50% increase in revenue from new merchandise which comprised 25% of sales in our core banners, up 8 points from a year ago.

讓我們詳細討論其中的每一個。第二季同店銷售額下降至個位數低位，主要得益於時尚業務的加速成長，以及婚紗業務的改善和服務業務的持續強勁。正如我上季度提到的，我們繼續關注新的、創新的和流行的單品。在更嚴峻的宏觀環境中，這對我們來說是一個行之有效的策略，並且得到了客戶的強烈迴響。第二季度，我們的新商品收入成長了 50%，其中核心橫幅銷售額佔 25%，比去年同期成長 8 個百分點。

In Fashion, this trend was broad-based as all banners improved sequentially this quarter, led by our three largest banners, Jared, Zales and Kay. In fact, we delivered positive Fashion same-store sales in July, August and September-to-date.

在時尚領域，這一趨勢基礎廣泛，本季所有橫幅均連續改善，其中以我們最大的三個橫幅 Jared、Zales 和 Kay 為首。事實上，迄今為止，我們在 7 月、8 月和 9 月實現了積極的時尚同店銷售。

As we head toward the key gifting season of the year, we expect this trend to continue. We are well positioned to further grow our penetration of new merchandise while maintaining our inventory discipline. We see our ability to be nimble and manage our merchandise assortment as a real competitive advantage.

隨著一年中關鍵的送禮季節的到來，我們預計這種趨勢將持續下去。我們處於有利位置，可以進一步提高新商品的滲透率，同時保持我們的庫存紀律。我們將靈活管理商品品種的能力視為真正的競爭優勢。

When compared to industry data, we turn our inventory roughly 2x as fast as independent jewelers, which to consumers, means more frequency of great new products at the right price points. Our innovation in Fashion includes sculpted gold that allows us to provide big chunky looks at attractive price points. Lab Diamond Fashion Jewelry continues to grow, up more than 25% in the quarter to last year and is a driver of ATV.

與行業數據相比，我們的庫存週轉速度大約是獨立珠寶商的 2 倍，這對消費者來說意味著以合適的價格更頻繁地推出優質新產品。我們在時尚方面的創新包括雕刻黃金，這使我們能夠以有吸引力的價格提供大而厚實的外觀。 Lab Diamond Fashion Jewelry 持續成長，較去年同期成長超過 25%，是 ATV 的推動力。

We're also seeing traction in watches led by new designs in Citizen and Bulova. Further, our proprietary branding is aiding Bridal ATV, led by pieces from Chosen, Neil Lane and Monique Lhuillier. We're also leveraging our De Beers partnership to advance jewelry consultant training, natural diamond marketing, and several new branded natural diamond merchandise collections launching in the third quarter.

我們也看到以西鐵城 (Citizen) 和寶路華 (Bulova) 的新設計為主導的手錶的吸引力。此外，我們的專有品牌正在幫助以 Chosen、Neil Lane 和 Monique Lhuillier 為首的 Bridal ATV。我們也利用與戴比爾斯的合作關係來推進珠寶顧問培訓、天然鑽石行銷以及第三季推出的幾個新品牌天然鑽石商品系列。

Services continues to be a source of strength for Signet, growing 1.4% in the quarter, with extended service agreement or ESA attachment rates up 210 basis points, led by strong attachment in Engagement and early traction on new products like post-repair ESA. Importantly, the attachment rate on Lab-Diamond jewelry is well above other merchandise in both Bridal and Fashion categories.

服務仍然是 Signet 的力量源泉，本季增長 1.4%，延長服務協議或 ESA 附著率上升 210 個基點，這主要得益於參與度的強勁附著力以及修復後 ESA 等新產品的早期吸引力。重要的是，Lab-Diamond 珠寶的購買率遠高於新娘和時尚類別的其他商品。

Services has grown every quarter for the past two years, outpacing Merchandise revenue by over 20 points. The progress we've made will be an important tailwind as Merchandise same-store sales improve in the back half of the year, particularly as Engagements continue to increase. Engagements also improved in the second quarter by approximately 400 basis points on a same-store sales basis.

過去兩年，服務每季都在成長，超過商品收入 20 個百分點以上。隨著今年下半年商品同店銷售的改善，特別是隨著參與度的持續增加，我們所取得的進展將成為重要的動力。第二季的同店銷售額也提高了約 400 個基點。

As predicted, the Engagement recovery is happening. Google and Instagram searches for Engagement rings are now up significantly in recent months, couples achieving at least 26 of our proprietary Engagement milestones, where they become highly likely to get engaged, is now 900 basis points higher than last year and the highest number of couples ready to get engaged, we've seen since we began tracking these milestones a few years ago.

正如預測的那樣，參與度正在恢復。近幾個月來，Google 和Instagram 上訂婚戒指的搜尋量顯著上升，至少達到26 個我們專有的訂婚里程碑的情侶（即他們訂婚的可能性很高）現在比去年高出900 個基點，是情侶數量最高的自從幾年前我們開始追蹤這些里程碑以來，我們就已經看到了準備訂婚的情況。

Based on these leading indicators and the positive Engagement unit growth we've seen third quarter-to-date, we have confidence that we're well positioned for the upcoming peak engagement season over the holidays and the multiyear Engagement recovery back to pre-pandemic levels. That said, separately, customers are approaching engagement in a more cautious way in this macro environment, slowing the recovery.

根據這些領先指標以及我們第三季度迄今為止看到的積極的參與度單位增長，我們有信心為即將到來的假期期間的參與度高峰季以及多年的參與度恢復到大流行前做好準備。 。也就是說，在這種宏觀環境下，客戶正在以更謹慎的方式參與，減緩了復甦。

For example, customers are visiting our sites 15% more often than a year ago before making a purchase. Our Digital Banners progress has been steady as we saw sequential improvement of 600 basis points in same-store sales compared to the first quarter with further improvement into the third quarter. We now have the majority of our vendor API connections corrected, facilitating more real-time communication for custom pieces, and we expect more vendor connections to be updated ahead of the holiday season. We're also making improvements to the customer website experience, and we've significantly expanded our new merchandise assortment.

例如，客戶在購買前造訪我們網站的頻率比一年前增加了 15%。我們的數位橫幅進展一直穩定，同店銷售額比第一季連續提高了 600 個基點，並且到第三季進一步改善。現在，我們已經糾正了大部分供應商 API 連接，從而促進了定製件的更即時通信，並且我們預計將在假期季節之前更新更多供應商連接。我們也改進了客戶網站體驗，並且大幅擴展了新的商品種類。

My second takeaway today is that we grew both merchandise margin and ATV despite industry promotional pressure. Our merchandise strategy is to deliver the right products at the right value while balancing market share, margins and long-term value of natural diamonds. This strategic balance is working to offset competitive price pressure on loose diamonds. For example, North America Bridal ATV was nearly flat in the second quarter.

我今天的第二個收穫是，儘管面臨行業促銷壓力，但我們的商品利潤率和 ATV 都實現了成長。我們的商品策略是以正確的價值提供正確的產品，同時平衡天然鑽石的市場份額、利潤和長期價值。這種策略平衡正在努力抵消裸鑽的競爭價格壓力。例如，北美新娘全地形車第二季幾乎持平。

Further, our merchandise innovation drove North America Fashion ATV up mid single-digits in the second quarter and helped expand merchandise margins. We are investing ahead of holiday to improve the customer shopping experience. This includes additional training for our jewelry consultants, further rollout of personalized digital storefronts, enhanced Wi-Fi across the fleet as well as more than 300 store renovations.

此外，我們的商品創新推動北美時尚 ATV 在第二季度實現中個位數成長，並有助於擴大商品利潤。我們在假期前進行投資，以改善客戶的購物體驗。這包括對我們的珠寶顧問進行額外培訓、進一步推出個人化數位店面、增強整個車隊的 Wi-Fi 以及對 300 多家商店進行翻修。

At Kay, we're renovating over 200 stores this year. At Jared, we've invested in both the fleet and up-tiering of the assortment, delivering Fashion ATV up nearly double-digits in the second quarter. In marketing, we're increasingly leveraging data and AI to personalize our messaging. In digital, we're launching a number of new features, including self-learning search capability on our websites which will curate results and listings to the most relevant products.

在 Kay，我們今年將翻新 200 多家商店。在 Jared，我們對產品種類和產品系列進行了投資，使時尚 ATV 在第二季度實現了近兩位數的成長。在行銷中，我們越來越多地利用數據和人工智慧來個性化我們的訊息傳遞。在數位領域，我們推出了許多新功能，包括我們網站上的自學搜尋功能，該功能將整理最相關產品的結果和清單。

We believe all these investments will drive incremental sales over the holidays. This tight net combination of merchandise and banner strategy has been a competitive advantage for Signet. Since wide-scale availability in 2019, price decreases in Lab Diamonds have been an ongoing story. In the second quarter and across this longer time period, our merchandise strategy delivered growth, both in our ATV and merchandise margins, driven by our strengths in sourcing, branding and diamond expertise. The consumer remains dynamic and is focused on value, promotions and new on-trend merchandise, and we believe we have the right playbook to navigate this environment.

我們相信所有這些投資將推動假期期間的銷售增量。這種商品和橫幅策略的緊密網路組合一直是 Signet 的競爭優勢。自 2019 年大規模供應以來，實驗室鑽石的價格一直在下降。在第二季以及整個較長時期內，我們的商品策略在我們的 ATV 和商品利潤率方面實現了成長，這得益於我們在採購、品牌和鑽石專業知識方面的優勢。消費者仍然充滿活力，專注於價值、促銷和新流行商品，我們相信我們有正確的策略來駕馭這種環境。

This leads me to my third and final takeaway that we are on track to deliver our fiscal 2025 guide. We've seen strong progression in same-store sales with the shape of the year on track with our expectations. Our confidence is also supported by the multiple ways to achieve our guide.

這引出了我的第三個也是最後一個要點：我們預計將交付 2025 財政年度指南。我們看到同店銷售強勁成長，今年的情況符合我們的預期。我們的信心也得到了實現指南的多種方式的支持。

We continue to expect positive Engagement units in the second half of the year, and we believe our new merchandise assortment will continue to drive strong Fashion sales. And while we expect sequential improvement in both categories, it's not required, simply maintaining our current pace of sales would deliver within our provided range. Further, our flexible operating model and continued efforts to streamline operations is leading us to increase our cost savings target for the year to upto $200 million. These savings will help balance the continued promotional environment as we go into the back half of the year.

我們仍然預計下半年將出現積極的參與度，並且我們相信我們的新商品品種將繼續推動強勁的時尚銷售。雖然我們預計這兩個類別都會連續改善，但這不是必需的，只需保持當前的銷售速度即可在我們提供的範圍內實現。此外，我們靈活的營運模式和對簡化營運的持續努力使我們將今年的成本節約目標提高到高達 2 億美元。這些節省將有助於平衡下半年持續的促銷環境。

We're also increasing our three-year savings target from $350 million to $450 million. In summary, our same-store sales progress continues and has turned positive. We're successfully managing margins and ATV, and we are on track to deliver the year.

我們還將三年節省目標從 3.5 億美元提高到 4.5 億美元。總而言之，我們的同店銷售進度仍在繼續，並已轉為正值。我們成功地管理了利潤率和 ATV，並且有望實現這一年的目標。

With that, I'll turn it over to Joan.

這樣，我就把它交給瓊。

Thanks, Gina, and good morning, everyone. Revenue for the quarter was $1.5 billion, down 7.6%, same-store sales were down 3.4% to last year. Same-store sales reflects the continued drag from our Digital Banners of approximately 150 basis points. The larger gap between same-store sales and total revenue this quarter is related to the 53rd week last year, as it shifted early Mother's Day shopping from Q2 to Q1, and we expect the gap to normalize in the back half of the year.

謝謝吉娜，大家早安。該季度營收為 15 億美元，下降 7.6%，同店銷售額較去年下降 3.4%。同店銷售額反映出我們的數位橫幅的持續拖累約 150 個基點。本季同店銷售額與總收入之間較大的差距與去年第 53 週有關，因為它將母親節提前購物從第二季度轉移到第一季度，我們預計這一差距將在下半年恢復正常。

North America ATV was up 1.6% this quarter, as we accelerated our push into Fashion newness, a strategy that is also effectively expanding merchandise margin. Importantly, Bridal ATV was nearly flat and Fashion ATV was up mid single-digits. We delivered gross margin of $566 million or 38% of sales this quarter, up 10 basis points to last year despite lower revenue.

北美 ATV 本季上漲 1.6%，因為我們加快了進軍時尚新穎的步伐，這項策略也有效地擴大了商品利潤。重要的是，新娘 ATV 幾乎持平，而時尚 ATV 則上漲了中等個位數。儘管營收有所下降，本季我們的毛利率仍達到 5.66 億美元，佔銷售額的 38%，比去年增長了 10 個基點。

The strength of new products at higher margins, a higher Fashion penetration and continued strength of Services drove a merchandise margin expansion of 120 basis points, fully offsetting fixed cost deleverage. Turning to SG&A. Expense was down $13 million to $498 million for the quarter. SG&A deleveraged by 170 basis points to 33.4% of sales due to the decline in revenue and modestly higher marketing expense. Adjusted operating income was $68.6 million for the quarter or 4.6% of sales.

利潤率更高的新產品、更高的時尚滲透率以及服務業的持續強勁推動商品利潤率擴大了 120 個基點，完全抵消了固定成本去槓桿化的影響。轉向SG&A。本季費用減少 1,300 萬美元，至 4.98 億美元。由於收入下降和行銷費用小幅上漲，SG&A 去槓桿化了 170 個基點，佔銷售額的 33.4%。該季度調整後營業收入為 6,860 萬美元，佔銷售額的 4.6%。

Adjusted EPS for the quarter was $1.25, down less than operating income due to higher interest income and a lower share count from the retirement and amendment of the convertible preferred shares as well as open market share repurchases.

本季調整後每股收益為 1.25 美元，低於營業收入，原因是利息收入增加，可轉換優先股的退役和修改以及公開市場股票回購導致股票數量減少。

As a result of our annual evaluation of goodwill and trade names, we took non-cash impairment charges of $166 million during the second quarter that were primarily a result of factors impacting our digital banners, which included the lengthened integration time frame and the slower engagement recovery. As you may recall, our Digital Banners strongly over-indexed into Bridal and loose diamonds, compared to Signet as a whole. This means that the slower engagement recovery and, to a lesser degree, impacts from market declines in the Lab-Created Diamond pricing has a more material impact on our Digital Banners. This charge caused an operating loss and negative EPS for the quarter on a GAAP basis.

根據我們對商譽和商號的年度評估，我們在第二季度收取了1.66 億美元的非現金減值費用，這主要是由於影響我們的數位橫幅的因素造成的，其中包括整合時間框架延長和參與速度減慢恢復。您可能還記得，與整體 Signet 相比，我們的數位橫幅對新娘鑽石和裸鑽的索引強烈過度。這意味著參與度恢復較慢，以及實驗室製造鑽石定價市場下降的影響（在較小程度上）對我們的數位橫幅產生了更大的實質影響。根據公認會計準則（GAAP）計算，這項費用導致該季度出現營運虧損和每股盈餘為負。

As mentioned earlier, our Digital Banners delivered a 6 point same-store sales improvement to Q1, and we expect further improvement in the back half, based on quarter-to-date trends. Turning to inventory. We ended the quarter at just below $2 billion, down more than 5% to last year. New product comprises approximately 25% of inventory in our core banners, up more than 7 points compared to a year ago. We plan to continue to drive higher penetration of new merchandise as we head into holiday.

如前所述，我們的數位橫幅使第一季的同店銷售額提高了 6 個百分點，根據本季至今的趨勢，我們預計下半年將進一步改善。轉向庫存。本季末，我們的營收略低於 20 億美元，比去年下降了 5% 以上。新產品約占我們核心橫幅庫存的 25%，比一年前增加了 7 個百分點以上。我們計劃在假期來臨之際繼續提高新商品的滲透率。

We believe customers will be value-focused this year, and our newness provides assortment at a wide range of price points. We increased the pace of share repurchases in the second quarter, buying approximately 441,000 shares for nearly $40 million to take advantage of the pullback in the share price. We continue to see share repurchases as an attractive use of capital and ended the second quarter with over $800 million in our multiyear remaining authorization.

我們相信今年顧客將注重價值，而我們的新品提供了各種價位的產品組合。我們在第二季加快了股票回購的步伐，以近 4,000 萬美元的價格購買了約 441,000 股股票，以利用股價回檔的機會。我們仍然認為股票回購是一種有吸引力的資本用途，截至第二季末，我們的多年剩餘授權已超過 8 億美元。

As a reminder, we are allocating up to $1.1 billion to the retirement of debt, redemption of preferred shares and open market common share repurchases in fiscal '25, of which we've already executed over $700 million through the second quarter. Importantly, these actions will reduce our diluted share count by over 15% on an annualized basis and also improve our leverage profile.

提醒一下，我們將在 25 財年分配最多 11 億美元用於債務償還、優先股贖回和公開市場普通股回購，其中我們已經在第二季度執行了超過 7 億美元。重要的是，這些行動將使我們的稀釋後股份數量按年計算減少 15% 以上，並改善我們的槓桿狀況。

Turning now to our balance sheet. We recently secured a three-year extension to our ABL at attractive terms similar to the existing facility, which now provides liquidity for the next five years. The ABL was also lower to $1.2 billion to align to our significantly reduced inventory base in the last few years as well as to provide savings on lower fees associated with our undrawn balance.

現在轉向我們的資產負債表。我們最近以類似於現有設施的有吸引力的條款將我們的 ABL 延長了三年，該設施現在為未來五年提供流動性。 ABL 也降低至 12 億美元，以適應過去幾年我們大幅減少的庫存基礎，並節省與未提取餘額相關的較低費用。

Looking to guidance, we are pleased with our agility in the second quarter, balancing new merchandise, competitive pricing, and sourcing savings to deliver on our expectations. We will continue this strategy in the back half of the year. We believe this, combined with our additional cost savings provides flexibility in a competitive environment.

展望指導，我們對第二季的敏捷性感到滿意，平衡了新商品、有競爭力的價格和採購節省，以實現我們的預期。下半年我們將繼續這項策略。我們相信，這一點與我們節省的額外成本相結合，可以在競爭環境中提供靈活性。

Turning to the third quarter. We expect revenue in the range of $1.345 billion to $1.38 billion, with same-store sales between down 1% to up 1.5%. We expect adjusted operating income between $8 million and $25 million and adjusted EBITDA between $55 million to $72 million. Our quarter-to-date same-store sales through this past weekend have turned positive, which is reflected in the upper half of our guide, while the low-end provides some cushion for variability throughout the quarter.

轉向第三季。我們預計營收在 13.45 億美元至 13.8 億美元之間，同店銷售額下降 1% 至成長 1.5% 之間。我們預計調整後營業收入在 800 萬美元至 2,500 萬美元之間，調整後 EBITDA 在 5,500 萬美元至 7,200 萬美元之間。上週末我們的季度至今同店銷售額已轉為正數，這反映在我們指南的上半部分，而下半部分則為整個季度的變化提供了一定的緩衝。

Gross margin rate is expected to expand modestly in the quarter with SG&A deleveraging somewhat, in part due to the shift of marketing spend into the third quarter ahead of the upcoming election. We are reaffirming our guidance range for the year. We now expect revenue near the middle of our range or better and are on path to deliver adjusted operating margin rate near the low-end of our expectations. Importantly, we have inventory flexibility to meet consumer demand for engagements within a range of down 5% to up 5% for the year. In addition, Fashion performance is now expected to be materially better based on recent trends.

由於行銷支出在即將到來的選舉之前轉移到第三季度，預計本季毛利率將小幅擴張，SG&A 將會有所去槓桿化。我們重申今年的指導範圍。我們現在預計收入將接近我們範圍的中間或更好，並且正在努力實現調整後的營業利潤率接近我們預期的下限。重要的是，我們的庫存彈性可以滿足消費者今年下降 5% 到上升 5% 範圍內的參與需求。此外，根據最近的趨勢，時尚界的表現預計將大幅改善。

The Digital Banner impact is also expected to be less of a negative impact this year, at roughly down 1% of sales compared to our prior view of down nearly 2%. We also continue to expect to spend $160 million to $180 million in capital expenditures with our investments in real estate on track. Before we move on to Q&A, I'd like to thank our Signet team for the momentum we are seeing in our business. I continue to be inspired by their passion and commitment to our customers and each other.

數位橫幅影響預計今年的負面影響也會較小，銷售額約下降 1%，而我們先前的預期是下降近 2%。隨著我們對房地產的投資步入正軌，我們也預計將花費 1.6 億至 1.8 億美元的資本支出。在我們進行問答之前，我要感謝我們的 Signet 團隊，感謝我們在業務中所看到的勢頭。他們對客戶和彼此的熱情和承諾繼續激勵著我。

Operator, now let's go to questions.

接線員，現在我們開始提問。

(Operator Instructions) Ike Boruchow, Wells Fargo.

（操作員指示）Ike Boruchow，富國銀行。

Question for me on the gross margin line. So up modestly in the third quarter, you've had merch margins up around 100 bps in the first two quarters of the year. Is there reason to believe that the merch margin trajectory should remain consistent into the back half and just there would be less offsets from deleverage as the comps improve? And then I guess, the second question, maybe for Joan or Gina. Just can you give us some guardrails around holiday specifically.

問我關於毛利率的問題。因此，第三季的商品利潤率略有上升，而今年前兩個季度的商品利潤率則上升了約 100 個基點。是否有理由相信，商品利潤率軌跡應該在下半年保持一致，並且隨著競爭的改善，去槓桿化的抵銷會減少？然後我想，第二個問題，也許是給瓊或吉娜的。您能給我們一些關於假期的具體防護措施嗎？

It's just obviously, it makes the breaks the year, given how much volume you guys do. Can you give us some thoughts on what exactly your expectations are whether it's comp or -- I don't know if there's any other variables you could point out to us, that would probably be helpful.

很明顯，考慮到你們的工作量，它是今年的突破口。您能否給我們一些關於您的期望到底是什麼的想法，無論是補償還是——我不知道您是否可以向我們指出任何其他變量，這可能會有所幫助。

Thanks, Ike, for the questions. With respect to gross margin, we continue to drive Fashion newness into the back half of the year. And as I mentioned, there's a push to increase the penetration of that inventory within our assortment. So that is what is driving the margin expansion for us.

謝謝艾克提出的問題。就毛利率而言，下半年我們將持續推動時尚新潮。正如我所提到的，我們正在努力提高該庫存在我們產品類別中的滲透率。這就是推動我們利潤率擴張的原因。

We said Bridal ATV was flat in the second quarter and Fashion was up mid single-digits. So we expect to continue to see the Fashion really providing that margin expansion for us at a merchandise margin level. We will continue to amplify and drive Services in the back half of the year.

我們表示，Bridal ATV 第二季度持平，而 Fashion 則實現中位數個位數成長。因此，我們預計時尚產業將繼續在商品利潤水平上真正為我們提供利潤成長。下半年我們將繼續擴大和推動服務。

And notably, the Bridal attachment rate has been increasing as we're seeing Bridal units increase. And so our penetration in store now is up over 90 -- 90% and as we're looking into the third quarter. And I would say that the Fashion attachment rate is also increasing. So that is also providing the margin expansion. And we would expect those components to continue to provide margin expansion for us in the back half of the year.

值得注意的是，隨著我們看到新娘單位的增加，新娘的依戀率也在增加。因此，我們在商店的滲透率現在已超過 90% - 90%，我們正在展望第三季。我想說的是，時尚依戀率也在增加。因此，這也提供了利潤率的擴張。我們預計這些組件將在今年下半年繼續為我們帶來利潤成長。

With respect to thinking about the quarters and what we expect for holiday, the back -- our guidance range enables us, as I said, to be at the mid-point, top-line, or better, you can see what the third quarter is. And so we're very pleased with the assortment that we have lined up for the back half, for the Bridal assortment. The amount of newness that's coming in is also in Bridal, and we expect the Engagement recovery to continue.

關於季度和我們對假期的預期，正如我所說，我們的指導範圍使我們能夠達到中點、頂線或更好，你可以看到第三季度的情況是。因此，我們對後半部分新娘系列的品種非常滿意。新娘領域也出現了大量的新鮮事物，我們預計訂婚率將繼續復甦。

And also bear in mind, like, that December is a very important and critical timing for engagements as we head into that, the holiday selling period. So we believe that we're -- our assortments is strong. we're seeing a strong response. And we're seeing the Engagement recovery happen. Although, as Gina mentioned, it's a little bit slower, than we had anticipated.

還要記住，當我們進入假期銷售期時，12 月是一個非常重要且關鍵的參與時機。所以我們相信我們的產品種類很豐富。我們看到了強烈的反應。我們看到參與度正在恢復。不過，正如吉娜所提到的，它比我們預期的要慢一些。

The customer is more cautious, visiting -- 15% higher visit rate before they actually make the purchase. So all of that is considered within our guidance. But to your point, fourth quarter is important. And we see that we're prepared for it.

客戶更加謹慎，在實際購買之前訪問率高出 15%。因此，所有這些都在我們的指導範圍內考慮。但就你而言，第四季很重要。我們看到我們已經準備好了。

Got it. And then just to go back to the gross margin. Juts, where there was a lot of talk on the last conference call about the promo environment, the competitions, what was going on that you guys spoke at length about that. Can you just give us an update three months later? How is that playing out?

知道了。然後回到毛利率。特斯，上次電話會議上有很多關於促銷環境、比賽以及正在發生的事情的討論，你們詳細地談到了這一點。三個月後可以給我們更新一下嗎？進展如何？

Is anything worsening? Is it improving? Is it flat lining, just at a high level? That would probably be helpful too.

有什麼事情在惡化嗎？有改善嗎？是平襯裡，只是處於高水準嗎？這可能也會有幫助。

Well, we have included in our guidance, Ike, is the idea that the competitive environment will remain as such and that we are prepared with flexibility within our guidance for promotion. And we will continue to -- with the balanced strategy of newness at strong margins, particularly in Fashion, and pacing of promotions to meet the competitive dynamic. So we will be leveraging the same components that we did in the second quarter for the balance of the year.

嗯，艾克，我們在我們的指導中包含了這樣的想法：競爭環境將保持不變，並且我們在晉升指導中做好了靈活的準備。我們將繼續採取平衡的策略，即以高利潤推出新產品，特別是在時尚領域，並調整促銷節奏以滿足競爭動態。因此，我們將在今年剩餘時間內利用第二季使用的相同組件。

Got it. Thank you.

知道了。謝謝。

Paul Lejuez, Citi.

保羅‧勒胡埃斯，花旗銀行。

Can you say what Engagement units are running year-to-date and quarter-to-date? And curious what do you have to see in 4Q to hit the plus 5% for the year? And then within that Engagement units being up quarter-to-date, I guess, it sounds like sales are still down. So maybe can you talk about the average ticket engagement and how that average ticket looks in Naturals specifically versus like Lab. specifically when you compare it to last year?

您能說出今年迄今和本季至今正在運行哪些參與單元嗎？好奇您在第四季會看到什麼才能實現全年 5% 的成長？然後，我想，在參與度單位截至目前的季度成長中，聽起來銷售額仍在下降。那麼也許您可以談談平均門票參與度以及平均門票在 Naturals 中的表現，特別是與 Lab 之類的相比。特別是當你與去年相比時？

Sure. Paul. Why don't I start on that? And then Joan, you can jump in. I think in terms of units, as Joan was just saying, we said in our prepared remarks, the Engagement recovery is happening.

當然。保羅.我為什麼不開始呢？然後瓊，你可以插話。 我認為就單位而言，正如瓊剛才所說，我們在準備好的發言中說過，參與度正在恢復。

And all of the data that we track indicates that, that will continue to accelerate throughout this fiscal year. But our guidance doesn't need that in order for us to deliver. In other words, if the pace of unit growth that we're seeing right now just flattens to where it is, and continues through the year, we would still deliver within our guide.

我們追蹤的所有數據都表明，這一趨勢將在本財年繼續加速。但我們的指導並不需要這樣才能讓我們達成目標。換句話說，如果我們現在看到的單位成長速度只是趨於平緩，並持續到今年，我們仍然會在我們的指導範圍內實現目標。

So we see that everything that we're looking at, external data like searches across different search engines as well as the proprietary milestones that we track. Those are at their highest that we've seen them. So up 900 basis points versus last year in terms of number of couples ready to get engaged. So we see a good tailwind on Engagements, but we don't have to have that in order to achieve our guide.

因此，我們可以看到我們正在查看的所有內容，外部資料（例如跨不同搜尋引擎的搜尋）以及我們追蹤的專有里程碑。這是我們見過的最高水平。因此，準備訂婚的情侶數量比去年增加了 900 個基點。因此，我們在參與度方面看到了良好的推動力，但我們不必擁有它才能實現我們的指導。

And then you also asked a question about LCD. We have had a strategy since beginning to trade customers up if they're interested in LCD. And we have continued to do that. So we actually see a higher ATV on LCD pieces than we do in natural. We see a higher attachment rate of ESA on LCD as a result.

然後你也問了一個關於LCD的問題。自開始以來，我們就制定了一項策略，如果客戶對 LCD 感興趣，我們就會向他們進行交易。我們一直在做這件事。所以我們實際上在液晶顯示器上看到的 ATV 比我們在自然中看到的要高。因此，我們看到 ESA 在 LCD 上的附著率更高。

So in that context, our team has worked very hard to maintain strong value across diamonds. And we're also seeing a lot of great innovation come on natural diamonds. I think we're getting to a point where consumers seem to understand the difference.

因此，在這種背景下，我們的團隊非常努力地維持鑽石的強勁價值。我們也看到許多關於天然鑽石的偉大創新。我認為我們已經到了消費者似乎能夠理解其中差異的地步。

They understand the specialness and uniqueness of natural diamonds and are very interested in that context and that's the value that has been able to have over time. But they understand that with LCD, they have an opportunity potentially to trade up because it's cheaper, there's more availability.

他們了解天然鑽石的特殊性和獨特性，並對這種背景非常感興趣，這就是隨著時間的推移而能夠擁有的價值。但他們明白，有了 LCD，他們就有機會升級，因為它更便宜，可用性更高。

Got it. And just to follow up with the plus 5% for the year, would that be consistent with the high end of guidance then?

知道了。如果只是跟進今年的 5%，這是否與指導的高端一致？

Yes. When you think of the guidance range, it's a minus 5% to plus 5% units in Bridal. But to Gina's earlier comments, I would say, Paul, there's a several scenarios to hit our overall high end of guide, we have Fashion running positively right now. We have Bridal units running positive. So there's a combination of outcomes to deliver the high end of guide, but one of those combinations has the high end at plus 5% units for Bridal.

是的。當你想到指導範圍時，新娘的指導範圍是負 5% 到正 5%。但對於吉娜之前的評論，我想說，保羅，有幾種情況可以達到我們指南的整體高端，我們現在的時尚正在積極運行。我們的新娘單位運作良好。因此，有多種結果組合可以提供指南的高端，但其中一種組合的高端為新娘加 5% 單位。

And, sorry, right. And then what do you need to do in the fourth quarter to get to that plus 5%?

而且，抱歉，是的。那麼第四季你需要做什麼才能達到 5% 的成長呢？

The fourth quarter is -- would be toward high single-digit, low double-digit in Bridal units to get to the high end of the guide. And importantly, the trajectory that we're on today shows that quarter-to-date in the third quarter is that we're running up units in Bridal. So it's a positive trend for us.

第四季度，新娘單位將朝著高個位數、低兩位數的方向發展，以達到指南的高端。重要的是，我們今天的發展軌跡表明，從第三季度至今，我們正在增加 Bridal 的單位數量。所以這對我們來說是一個正面的趨勢。

Thank you, guys. Good luck.

謝謝你們，夥計們。祝你好運。

Thank you.

謝謝。

Lorraine Hutchinson, Bank of America.

洛琳‧哈欽森，美國銀行。

Thank you. Good morning. Has the volatility in Lab-Created-Diamond prices changed your customers' perception of that as an option? I'd just be curious to hear the feedback you're hearing from customers and if it's different between Bridal and Fashion?

謝謝。早安.實驗室製造鑽石價格的波動是否改變了顧客對其作為一種選擇的看法？我只是想聽聽您從顧客那裡聽到的回饋，以及新娘和時尚之間是否有不同？

Lorraine, thanks for the question. So I think the interesting thing is we tend to think of lab-created as a new phenomenon, but it's been broadly available in jewelry since 2019. So the story of Lab Diamond pricing dropping has been a consistent story over that time period.

洛林，謝謝你的提問。因此，我認為有趣的是，我們傾向於將實驗室製造的鑽石視為一種新現象，但自2019 年以來，它已在珠寶中廣泛使用。一直是個一致的故事。

And what we're seeing is that consumers are understanding that. They're seeing that with lab created, they have a point-in-time opportunity to trade-up to potentially a larger diamond but that -- I don't believe they have the expectation that it will hold its value necessarily over time in the same way that natural diamonds traditionally have.

我們看到消費者正在理解這一點。他們看到，隨著實驗室的建立，他們有一個時間點機會來換取可能更大的鑽石，但我不相信他們期望它會隨著時間的推移而必然保持其價值。相同。

So I think we're seeing a more educated consumer over time about the difference. And I do think that it is somewhat different, at least that's what our research would indicate and our jewelry consultants is that it is somewhat different in Engagement and Fashion.

因此，我認為隨著時間的推移，我們會看到更多受過教育的消費者了解這種差異。我確實認為這有些不同，至少我們的研究表明，我們的珠寶顧問認為，在參與和時尚方面有所不同。

So Fashion LCD offers the chance really to add bling to pieces where it would have been too expensive to do that, previously. So we see continued opportunity to trade-up to higher ATVs in Fashion using LCD.

因此，時尚 LCD 確實提供了為單品添加閃亮元素的機會，而以前這樣做的成本太高。因此，我們看到了在時尚領域使用 LCD 升級至更高 ATV 的持續機會。

Thank you.

謝謝。

Jim Sanderson, Northcoast Research.

吉姆桑德森，北海岸研究中心。

Just wanted to talk a little bit more about marketing spending. I think you mentioned that you might see an acceleration in the current quarter in anticipation of holidays. But can you step back and give us an idea of how you expect this dollar budget to grow over time? Is that -- are you starting to lean into marketing as an investment to drive stronger foot traffic? Is that something that could be a near-term pressure point on operating income, just how we should look at that line item?

只是想多談談行銷支出。我想您提到過，由於假期的到來，本季的銷售量可能會加速成長。但您能否退後一步，告訴我們您預計這筆美元預算將如何隨著時間的推移而成長？您是否開始傾向於將行銷視為一項投資來增加客流量？這是否可能成為營業收入的近期壓力點，我們該如何看待這個項目？

Sure. Jim, we see marketing as a real area of competitive advantage for our company. We are far and away the biggest spender in the jewelry category across all of our different banners. And so we, as a result of that, create great partnerships with all of our partners, whether that's Google or Meta or our agencies who are working to bring us data that we can use our loyalty data to match with and create more personalized marketing. So we've been leaning into investments in marketing.

當然。吉姆，我們認為行銷是我們公司真正的競爭優勢領域。在我們所有不同品牌的珠寶類別中，我們無疑是最大的消費者。因此，我們與所有合作夥伴建立了良好的合作夥伴關係，無論是Google、Meta 還是我們的代理機構，他們正在努力為我們提供數據，我們可以使用我們的忠誠度數據來匹配並創建更個性化的行銷.因此，我們一直傾向於在行銷方面進行投資。

I think, gosh, since our transformation began because we've continued to see a great opportunity to drive more traffic to our winning brands. And as we've spent more time differentiating what each of these banners or brand stands for, it just makes more and more sense. I think it might have been a couple of calls ago, I talked about the fact that while as of the end of last year, we're 9% share of the jewelry category. We now have positioned our banners to appeal to 80% of jewelry customers.

我想，天哪，自從我們開始轉型以來，我們一直看到一個很好的機會來為我們的獲勝品牌帶來更多流量。隨著我們花費更多的時間來區分這些橫幅或品牌所代表的意義，它變得越來越有意義。我想可能是在幾次電話之前，我談到了這樣一個事實：截至去年年底，我們在珠寶類別中的份額為 9%。我們現在已經定位了我們的橫幅，以吸引 80% 的珠寶客戶。

So we see that as a lot of headwind or headroom, I'm sorry, to really communicate what our value proposition is and how it's different to our customers. So I think the big picture answer to your question is, yes, we've been leaning into differentiating our banners and investing in both marketing capability and media dollars behind of that over time to really drive those brand equities and to drive traffic into our stores and online.

因此，我很抱歉，我們認為要真正傳達我們的價值主張以及它與我們的客戶有何不同，存在著很大的阻力或空間。所以我認為你的問題的總體答案是，是的，我們一直傾向於差異化我們的橫幅，並隨著時間的推移投資於行銷能力和媒體資金，以真正推動這些品牌資產並增加我們商店的流量和在線。

(inaudible) sorry, Jim, just to dimension the question regarding spend dollars. We do expect dollars to be up for the year. And as we've said in both the -- reported in both the second quarter and third quarter, we see that as a part of the SG&A deleverage that we would expect.

（聽不清楚）抱歉，吉姆，只是為了解決有關花費美元的問題。我們確實預計今年美元將會上漲。正如我們在第二季和第三季報告中所說，我們認為這是我們預期的 SG&A 去槓桿化的一部分。

Understood. And then going forward, though, should we think of that line item is something that would grow in tandem with revenue growth? Or do you expect to see some investment to drive broader brand awareness over the next several years? So I think that's really what I'm getting at.

明白了。但展望未來，我們是否應該認為該訂單項會隨著營收的成長而成長？或者您期望在未來幾年內看到一些投資來提高更廣泛的品牌知名度？所以我認為這就是我真正想要表達的意思。

Yes. The investment, we would expect to continue investment, Jim, while driving efficiencies in our spend. And as we refined our algorithms and the work that we're doing within our personalized marketing and all of those capabilities that we're building, we would expect to build efficiencies in. But clearly, it is an investment for us to continue to drive business. And as Gina said, foot-traffic online, so to speak, and in-store.

是的。吉姆，我們希望繼續投資，同時提高我們的支出效率。隨著我們完善我們的演算法和我們在個人化行銷中所做的工作以及我們正在建立的所有這些功能，我們期望提高效率。正如吉娜所說，可以說是網路和店內的客流量。

Understood. Just a quick follow-up on the Lab-Grown-Diamond category. Could you update us on what your lab-grown mix is to date? How that's changed?

明白了。只是實驗室培育鑽石類別的快速後續。您能否向我們介紹一下您迄今為止實驗室培育的混合物的最新情況？怎麼變了？

So the mix is growing in terms of lab-grown. It's -- I think total sales is up like mid single-digit penetration to get to roughly a mid-teens. And then when we think about it from a diamond alone, it's a bit higher, but growing similarly in terms of penetration.

因此，實驗室培育的混合物正在不斷增長。我認為總銷售額的滲透率會上升到個位數左右，達到大約十幾歲左右。然後，當我們僅從鑽石角度考慮時，它會更高一些，但在穿透力方面也有類似的增長。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Mauricio Serna, UBS.

毛里西奧·塞爾納，瑞銀。

Just maybe could you talk a little bit more about -- just thinking about the guidance for the -- implied guidance for fourth quarter. If I want to get to like the low end of the range, I think I'm seeing like a high single-digit decline in total revenues for the third quarter, what would that scenario be? I guess, just you guys are trying to be conservative, but I just want to understand like what are the puts and takes for that particular scenario? And then I have another quick follow-up on margins.

也許您可以多談談 - 只是想想第四季度的隱含指導。如果我想達到該範圍的低端，我認為我看到第三季總收入出現高個位數下降，那麼情況會怎麼樣？我想，只是你們想保守一點，但我只是想了解在這種特定情況下的看跌期權是什麼？然後我對利潤率進行了另一次快速跟進。

Yes. For the low end of guide, you're directing it to that direction, Mauricio, we assumed Engagement units on the low end could be down 5%, as we mentioned earlier. In Fashion could also be down low single digits. So as stay within our guidance range, we don't need to see the high -- we don't need to do better than the current trend that we're seeing.

是的。對於指南的低端，你將其引導到那個方向，毛里西奧，我們假設低端的交戰單位可能會下降 5%，正如我們之前提到的。時尚產業也可能下降低個位數。因此，只要保持在我們的指導範圍內，我們就不需要看到高點——我們不需要做得比我們所看到的當前趨勢更好。

So it's really -- we feel that what we're seeing in Q3 to date as well as the response to newness and the margin expansion we're seeing related to that, that we're squarely positioned with the guidance we have to be at the midpoint or better on revenue and towards the low- to middle-end of guidance on EBIT.

因此，我們確實認為，迄今為止在第三季度所看到的情況以及對新事物的反應以及我們所看到的與此相關的利潤率擴張，我們完全符合我們必須遵循的指導方針收入接近中點或更好，息稅前利潤指導接近中低端。

So really feel solid on the trajectory of the business and the flexibility that we factored into our guidance around promotion and the variability that we might see across the back half of the year. So the cost savings that we've outlined, we've increased to upto $200 million. That again also gives us flexibility in delivering on our margins.

因此，我們對業務的發展軌跡以及我們在促銷指導中所考慮的靈活性以及我們在今年下半年可能會看到的變化感到非常堅定。因此，我們概述的成本節約已增加至 2 億美元。這也讓我們能夠靈活地實現利潤。

Got it. And then just a quick follow-up on the fourth quarter on the margin side, actually, just doing the numbers again, like it does imply like a year-over-year expansion at operating margin, I think, over 300 basis points. Just trying to understand like where is that coming from? Is that like better gross margin acceleration, SG&A dollars are going to be down like high single-, low double-digits? Just trying to understand what is really contemplated into that really good fourth quarter?

知道了。然後，對第四季度的利潤率進行快速跟進，實際上，只是再次計算數字，我認為這確實意味著營業利潤率同比擴張，超過 300 個基點。只是想了解它是從哪裡來的？這是否就像更好的毛利率加速一樣，SG&A 美元將會像高個位數、低兩位數一樣下降？只是想了解這個非常好的第四季真正考慮了什麼？

Yes. And what I would highlight for you is that we have deleveraged SG&A in both the second and third quarter. And as we are within positive comps that you'll see expansion come naturally from leveraging a fixed cost. We'll continue to drive Fashion as I've mentioned, and Services. And with the Engagement recovery, you can see a higher penetration of Services that will also help to expand margin in the quarter.

是的。我要向您強調的是，我們在第二季和第三季都對銷售及管理費用進行了去槓桿化。由於我們處於積極的競爭之中，您會看到利用固定成本自然地實現了擴張。正如我所提到的，我們將繼續推動時尚和服務。隨著參與度的恢復，您可以看到服務的滲透率更高，這也將有助於擴大本季的利潤率。

So it's consistent leverage of our consistent drive on the tools that we have to leverage in newness services as well as the competitive pricing that we factored in as well as in the positive comp to help us offset or help us leverage on our fixed cost base. Those are the components.

因此，我們對新服務中必須利用的工具的持續驅動力以及我們考慮的有競爭力的定價以及積極的補償來幫助我們抵消或幫助我們利用我們的固定成本基礎。這些是組件。

Got it. And how much was the 53rd week from an SG&A dollar standpoint? Just to bear that in mind -- have that in mind?

知道了。從 SG&A 美元的角度來看，第 53 週是多少？只是要記住這一點——記住了嗎？

We'll have to -- I don't have that off the top of my head. So we'll get back to you on that, Mauricio.

我們必須──我腦子裡沒有這個想法。所以我們會盡快回覆您，毛里西奧。

Thank you so much. Yes.

太感謝了。是的。

Dana Telsey, Telsey Group.

達納‧特爾西，特爾西集團。

As you think about the margins on the Digital Banners, can you get -- and I think last quarter, you had some improvement of up to 300 basis points. How is that margin -- what are you seeing in terms of the Digital Banner margin now?

當你考慮到數位橫幅的利潤時，你可以得到——我認為上個季度，你有高達 300 個基點的改善。這個利潤率如何——您現在對數位橫幅利潤率有何看法？

And also, it sounds like Services continues to be meaningful. Is that an increasing contribution to margins? And then just a follow-up on the real estate side, what did you see during the quarter in terms of performance of the physical real estate, whether it's location or banner?

而且，聽起來服務仍然很有意義。這對利潤率的貢獻是否越來越大？然後是房地產方面的後續行動，您在本季度中看到實體房地產的表現如何，無論是地點還是橫幅？

So the Digital Banners improvement in terms of comp -- we've indicated in the past that it was down [2%], and we're seeing it move to having a negative impact of 1 point in the back half of the year. So a 600 basis point sequential improvement in top-line for the Digital Banners.

因此，數位橫幅在競爭方面有所改善 - 我們過去曾表示它下降了 [2%]，並且我們看到它在今年下半年產生了 1 個百分點的負面影響。因此，數位橫幅的營收環比提高了 600 個基點。

That's helping us to offset some of the fixed costs as well or leverage some of the fixed costs. So we're seeing bottom-line margin expansion, albeit, Dana, it's slight at this point. And so -- but we'll continue to drive efficiencies there as we drive the top-line.

這也有助於我們抵銷一些固定成本或利用一些固定成本。因此，我們看到底線利潤率有所擴張，儘管達納，目前增幅很小。因此，我們將在提高營收的同時繼續提高效率。

The integration itself is as Gina mentioned in her remarks that we have the majority of API fixed and we keep -- we are adding new vendors. But importantly, with respect to the Digital Banners, we're also adding finished products and some Fashion products, which will continue to drive expansion in their gross margin as well.

整合本身正如吉娜在她的評論中提到的那樣，我們已經修復了大部分 API，並且我們保留了——我們正在添加新的供應商。但重要的是，就數位橫幅而言，我們還添加了成品和一些時尚產品，這也將繼續推動其毛利率的擴張。

So it's an important, a strategic move that the Digital banner team has made, and it's been helpful, and we'll see more of that coming into the fourth quarter. With respect to real estate, we've -- e-commerce overall for the quarter was relatively flat, the banner by banner. We were really pleased to see that Zales has -- with the influx of Fashion product into that business. We're seeing that help drive the e-commerce performance for that banner. And as we look overall, we -- our stores are well positioned.

因此，這是數位橫幅團隊採取的一項重要的策略舉措，而且很有幫助，我們將在第四季度看到更多這樣的舉措。就房地產而言，本季電子商務整體表現相對平淡。我們非常高興看到 Zales 已經將時尚產品湧入該行業。我們發現這有助於推動該橫幅的電子商務績效。總體而言，我們的商店定位良好。

We're renovating in anticipation of improved traffic, and we believe based on the testing that we've done and the stores that we've already completed that we'll see a nice lift on the top line relative to that as we complete the balance of the stores heading into holiday.

我們正在進行翻新，以期改善客流量，我們相信，根據我們已經完成的測試和我們已經完成的商店，當我們完成進入假期的商店餘額。

Thank you.

謝謝。

There are no further questions at this time. I'd now like to turn the call back over to Ms. Drosos for final closing comments.

目前沒有其他問題。我現在想將電話轉回給 Drosos 女士，以徵求最後的總結意見。

Well, thank you, everyone. We called out a number of competitive advantages today, but I'd like to end the call highlighting the same one that I started with this morning, our experienced, knowledgeable and dedicated team. Their execution is key to the accelerating momentum we are delivering in the business. So thank you all for joining our call today, and we look forward to speaking to you all again in December.

嗯，謝謝大家。我們今天列舉了許多競爭優勢，但我想在通話結束時強調我今天早上開始時所強調的同樣的優勢，即我們經驗豐富、知識淵博且敬業的團隊。他們的執行力是我們業務加速發展的關鍵。感謝大家今天加入我們的電話會議，我們期待在 12 月再次與大家交談。

Thank you, ma'am. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.

謝謝你，女士。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。祝你有美好的一天。