Sleep Number Corp (SNBR) 2023 Q2 法說會逐字稿

Welcome to Sleep Number's Q2 2023 Earnings Conference Call. (Operator Instructions) Today's call is being recorded. If anyone has objections, you may disconnect at this time. I would like to introduce Dave Schwantes, Vice President of Finance and Investor Relations. Thank you, Dave. You may begin.

歡迎參加 Sleep Number 2023 年第二季度收益電話會議。 （操作員說明）今天的通話正在錄音。如果有人反對，您可以此時斷開連接。我想介紹一下財務和投資者關係副總裁 Dave Schwantes。謝謝你，戴夫。你可以開始了。

Good afternoon, and welcome to the Sleep Number Corporation Second Quarter 2023 Earnings Conference Call. Thank you for joining us. I am Dave Schwantes, Vice President of Finance and Investor Relations. With me today are Shelly Ibach, our Chair, President and CEO; and Chris Krusmark, our Interim CFO and Chief Human Resources Officer. This telephone conference is being recorded and will be available on our website at sleepnumber.com. Please refer to the details in our news release to access the replay. Please also refer to our news release for a reconciliation of certain non-GAAP financial measures and supplemental financial information included in the news release or that may be discussed on this call.

下午好，歡迎參加 Sleep Number Corporation 2023 年第二季度收益電話會議。感謝您加入我們。我是戴夫·施萬特斯 (Dave Schwantes)，財務和投資者關係副總裁。今天與我在一起的有我們的董事長、總裁兼首席執行官 Shelly Ibach；以及我們的臨時首席財務官兼首席人力資源官 Chris Krusmark。本次電話會議正在錄製中，並將在我們的網站 sleepnumber.com 上提供。請參閱我們新聞稿中的詳細信息以觀看重播。另請參閱我們的新聞稿，了解新聞稿中包含的或本次電話會議中可能討論的某些非 GAAP 財務指標和補充財務信息的調節表。

The primary purpose of this call is to discuss the results of the fiscal period just ended. However, our commentary and responses to your questions may include certain forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties outlined in our earnings news release and discussed in some detail in our annual report on Form 10-K and other periodic filings with the SEC. The company's actual future results may vary materially. We also want to refer you to our second quarter earnings presentation, which can be accessed on the Investor Relations page of our website.

這次電話會議的主要目的是討論剛剛結束的財政期間的結果。然而，我們對您問題的評論和答复可能包含某些前瞻性陳述。這些前瞻性陳述受到我們的收益新聞稿中概述的許多風險和不確定性的影響，並在我們向 SEC 提交的 10-K 表格年度報告和其他定期文件中進行了詳細討論。公司未來的實際業績可能會存在重大差異。我們還想向您推薦我們的第二季度收益報告，您可以在我們網站的投資者關係頁面上訪問該報告。

I will now turn the call over to Shelly for her comments.

我現在將把電話轉給雪莉徵求她的意見。

Good afternoon, and thank you for joining our second quarter 2023 earnings call. My Sleep IQ score was 85 last night. I'm pleased to share that today, Sleep Number announced the appointment of Francis Lee as our company's Executive Vice President and Chief Financial Officer effective August 14. Francis brings significant leadership experience in finance and strategy at Fortune 500 consumer-focused brands, including Nike and Gap and most recently as CFO of Wise Labs, an AI-powered Smart Home innovator.

下午好，感謝您參加我們的 2023 年第二季度財報電話會議。昨晚我的睡眠智商分數是 85。我很高興與大家分享，今天，Sleep Number 宣布任命 Francis Lee 為我們公司的執行副總裁兼首席財務官，該任命於 8 月 14 日生效。Francis 在包括 Nike 在內的財富 500 強消費者品牌中帶來了財務和戰略方面的重要領導經驗和 Gap，最近擔任人工智能驅動的智能家居創新公司 Wise Labs 的首席財務官。

At Wise, Francis increased cash flow and profitability through a business model evolution from hardware to software with reoccurring revenue streams that emphasize customer lifetime value. He has a proven track record in business planning, operational transformation and capital structure. We look forward to benefiting from Francis' leadership in advancing our differentiated strategy and creating superior shareholder value. During today's call, I'll provide highlights of our second quarter performance in the context of current market conditions, describe actions we are prioritizing in 2023 to compete effectively, drive operational efficiencies and generate cash and share how we have positioned our business for strong earnings growth and significant value creation as demand improves.

在 Wise，Francis 通過從硬件到軟件的業務模式演變，以及強調客戶終身價值的重複收入流，增加了現金流和盈利能力。他在業務規劃、運營轉型和資本結構方面擁有良好的記錄。我們期待從弗朗西斯的領導中受益，推進我們的差異化戰略並創造卓越的股東價值。在今天的電話會議上，我將重點介紹我們在當前市場狀況下第二季度的業績，描述我們在 2023 年優先採取的行動，以實現有效競爭、提高運營效率並產生現金，並分享我們如何定位我們的業務以實現強勁的盈利隨著需求的改善，增長和顯著的價值創造。

Sleep Number and the mattress industry overall have been operating in a disrupted and challenging macro environment, which has resulted in a historic contraction in demand for mattresses with 6 consecutive quarters at recessionary spend levels. In this environment, our demand driving and efficiency actions delivered second quarter results that included net sales of $459 million with demand down mid-single digits. Over -- our year-over-year demand improved 7 percentage points sequentially compared with the first quarter, but was a few percentage points below our Q2 expectations of flat to down slightly.

Sleep Number 和整個床墊行業一直在一個混亂且充滿挑戰的宏觀環境中運營，這導致床墊需求出現歷史性萎縮，連續 6 個季度處於衰退支出水平。在這種環境下，我們的需求驅動和效率行動帶來了第二季度的業績，其中包括 4.59 億美元的淨銷售額，而需求下降了中個位數。與第一季度相比，我們的同比需求連續增長了 7 個百分點，但比我們對第二季度持平或略有下降的預期低了幾個百分點。

As the quarter progressed, year-over-year demand trends improved with combined May and June demand down low single digits. Gross profit rate of 57.6% was right in line with our expectations. Our ongoing cost control actions drove a $22 million year-over-year reduction in operating expenses. Earnings per share for the quarter were [$0.03]. Based on analyst Q2 surveys, we believe we outperformed the industry and gained market share in the quarter. As an additional reference point, industry unit levels on a trailing 12-month basis through Q1 are 14% below 2019, representing 26 million industry units compared with more than 30 million units in 2019. On the same basis, Sleep Number units are down 1% and even with chip shortages that disproportionately impacted our company in 2021 and 2022.

隨著本季度的進展，同比需求趨勢有所改善，五月和六月的總需求下降了低個位數。 57.6%的毛利率符合我們的預期。我們持續採取的成本控制措施使運營費用同比減少了 2200 萬美元。本季度每股收益為[0.03 美元]。根據分析師第二季度的調查，我們相信我們在本季度的表現優於行業並獲得了市場份額。作為另一個參考點，截至第一季度的過去 12 個月的行業單位水平比 2019 年低 14%，即 2600 萬個行業單位，而 2019 年則超過 3000 萬個單位。在同樣的基礎上，睡眠數量單位下降了 1 %，即使芯片短缺在 2021 年和 2022 年對我們公司造成了不成比例的影響。

Year-to-date, our demand has steadily improved, and we expect continued improvement in the back half with mid-single to low double-digit demand growth year-over-year. In 2023, we are focused on 3 priorities to deliver our financial commitments, taking market share by leveraging our brand building, innovation and connected smart sleepers, restoring gross profit after the global supply chain disruptions and generating increased cash flows and reducing leverage.

今年迄今為止，我們的需求穩步改善，我們預計下半年需求將繼續改善，需求同比增長為中個位數至低兩位數。 2023年，我們將重點關註三個優先事項來兌現我們的財務承諾，通過利用我們的品牌建設、創新和互聯智能臥舖來佔據市場份額，在全球供應鏈中斷後恢復毛利潤，並增加現金流並降低杠桿率。

Let me share a few examples of how we are delivering on these priorities. Life-changing innovations and world-class marketing continue to be important drivers of our top line. Climate360 smart bed, which launched in Q4 last year, continues to generate strong performance at the high end of our line. More than 80% of couples say one of them sleeps too hot or too cold. The Climate360 smart bed with active heating and cooling technology provides individualized temperature control, so each sleeper can benefit from their ideal microclimate. And our recent proof point that Climate360 sleepers can get up to 44 more minutes of restful sleep per night from using the features in this temperature balancing smart bed affirms its value.

讓我分享一些我們如何實現這些優先事項的例子。改變生活的創新和世界一流的營銷仍然是我們營收的重要驅動力。去年第四季度推出的 Climate360 智能床繼續在我們的高端產品線中產生強勁的表現。超過 80% 的夫婦表示其中一方睡得太熱或太冷。 Climate360 智能床採用主動加熱和冷卻技術，可提供個性化的溫度控制，讓每個睡眠者都能受益於理想的微氣候。我們最近的證據表明，通過使用這款溫度平衡智能床的功能，Climate360 睡眠者每晚最多可以多獲得 44 分鐘的安寧睡眠，這證實了其價值。

With the introduction of our next-generation smart beds, all Sleep Number smart beds now have temperature benefits with opening price points under $1,100. These competitively advantaged smart beds offer an adaptive and effortless connected sleep health experience and the new technology platform positions us for expanded offerings in the future through digital products and services. We are efficiently managing the transition to our new smart bed portfolio. Our teams have planned and executed for holistic demand, unit and margin management.

隨著我們新一代智能床的推出，所有 Sleep Number 智能床現在都具有溫度優勢，開盤價格低於 1,100 美元。這些具有競爭優勢的智能床提供了自適應且輕鬆的互聯睡眠健康體驗，新技術平台使我們能夠在未來通過數字產品和服務擴展產品。我們正在有效地管理向新智能床產品組合的過渡。我們的團隊已規劃並執行整體需求、單位和利潤管理。

In Q2, we introduced the M7 and i10, and we will complete the set of the remaining 90% of our next-gen smart bed portfolio in all Sleep Number stores next week. Well in advance of our biggest event of the year, the Labor Day selling period. We are growing brand interest with our new next -- Sleep next level advertising campaign. Since introducing the campaign in late April, we have driven positive search interest in Sleep Number compared to mid-single-digit declines for other premium brands and double-digit declines for the industry over the same period.

在第二季度，我們推出了 M7 和 i10，下週我們將在所有 Sleep Number 商店完成下一代智能床產品組合剩餘 90% 的設置。遠遠早於我們今年最大的活動——勞動節銷售期。我們通過新的“下一個睡眠級別”廣告活動來提高品牌興趣。自 4 月下旬推出該活動以來，我們推動了 Sleep Number 的搜索興趣上升，而同期其他高端品牌的搜索興趣呈中個位數下降，該行業的搜索興趣呈兩位數下降。

With the start of the NFL season, we will introduce a compelling advancement of this campaign, which tested at all-time highs. And we are driving media efficiency and effectiveness through optimization tools and simplified digital experiences. These initiatives are resulting in high-quality digital and store traffic while generating media leverage. Complementing these drivers of top line growth our initiatives that we expect to drive gross margin rate expansion by more than 150 basis points for the full year.

隨著 NFL 賽季的開始，我們將介紹本次活動的一項引人注目的進步，該活動已達到歷史最高水平。我們正在通過優化工具和簡化的數字體驗來提高媒體效率和效果。這些舉措帶來了高質量的數字和商店流量，同時產生了媒體影響力。作為對這些收入增長驅動因素的補充，我們預計將推動全年毛利率擴張超過 150 個基點。

In addition to higher margin mix from our new smart bed introductions as we move through the back half, sources of margin improvement across our operations include pricing, easing of commodity costs, steady and predictable supply and digital efficiency tools supporting workforce planning and data management. We expect these and additional initiatives to be positive drivers of gross margin in the balance of the year and beyond.

除了隨著下半年推出的新智能床帶來更高的利潤組合外，我們整個運營利潤率改善的來源還包括定價、商品成本的降低、穩定和可預測的供應以及支持勞動力規劃和數據管理的數字效率工具。我們預計這些和其他舉措將成為今年餘下及以後毛利率的積極推動因素。

With these demand and margin drivers, we expect to generate more than $100 million in cash from operations in 2023. As we entered the third quarter, year-over-year demand trends continue to improve. Consumer sentiment is beginning to move in the right direction, and our brand indicators are strong. However, given the challenging economic environment with demand slightly behind our expectations for the first half, we have narrowed our guidance range to $1.25 to $1.75 earnings per share for the full year.

憑藉這些需求和利潤驅動因素，我們預計 2023 年的運營現金將超過 1 億美元。進入第三季度後，同比需求趨勢繼續改善。消費者情緒開始朝著正確的方向發展，我們的品牌指標也很強勁。然而，鑑於經濟環境充滿挑戰，上半年需求略低於我們的預期，我們將全年盈利指引範圍縮小至每股 1.25 美元至 1.75 美元。

Importantly, the earnings power of our strategy and business model and our significant value creation potential are as strong as ever. Even as we have navigated a period of extended disruption, we have continued to position our business for long-term growth and market share gains. On Page 12 of the supporting deck posted to the Investor Relations page on our website, we highlight our expectations for the next few years including accelerating top and bottom line growth as we execute our strategy of consumer innovation and operational advancement and as consumer sentiment improves and the industry recovers from depressed demand levels.

重要的是，我們的戰略和商業模式的盈利能力以及我們巨大的價值創造潛力一如既往地強大。即使我們經歷了一段長期的混亂時期，我們仍繼續將我們的業務定位為長期增長和市場份額增長。在我們網站投資者關係頁面上發布的支持平台第 12 頁上，我們強調了我們對未來幾年的期望，包括隨著我們執行消費者創新和運營進步戰略以及消費者情緒改善和該行業從低迷的需求水平中復蘇。

Specifically, we expect our differentiated innovation pipeline, including the Climate360 smart bed and next-generation smart bed ecosystem with millions of highly engaged customers combined with our Sleep next level brand building and advanced digital capabilities to support high single-digit sales growth. We are intensely focused on expanding our gross margin rate with a goal to return it to 60% within a year and 62% over the next couple of years. Initiatives to drive margin expansion include: Increased mix of higher-margin products, including Climate360 and next-gen smart beds; addition of new, high-margin adjacent revenue streams from our innovation pipeline, opportunities to further leverage our retail and fulfillment networks through continued unit growth, and relief in commodity and other cost pressures that we absorbed in our operations during the past few years.

具體來說，我們期望我們的差異化創新管道，包括氣候360智能床和下一代智能床生態系統，擁有數百萬高度參與的客戶，結合我們的睡眠新水平品牌建設和先進的數字能力，以支持高個位數的銷售增長。我們高度重視擴大毛利率，目標是在一年內恢復到 60%，在未來幾年內恢復到 62%。推動利潤增長的舉措包括： 增加高利潤產品的組合，包括 Climate360 和下一代智能床；來自我們的創新渠道的新的、高利潤的相鄰收入流的增加，通過持續的單位增長進一步利用我們的零售和履行網絡的機會，以及過去幾年我們在運營中吸收的商品和其他成本壓力的緩解。

These margin driving efficiencies, combined with ongoing productivity improvements are expected to return our EBITDA margins to a low double-digit rate. While our 2022 and 2023 financial performance reflects the sustained impact of external business and economic disruptions we've effectively navigated the challenges while strengthening our brand, culture and competitive advantages. By hitting our strategic milestones and keeping the drivers of our business intact and healthy, we are well-positioned to accelerate performance and deliver superior returns to Sleep Number shareholders for years to come.

這些利潤驅動效率，加上持續的生產力提高，預計將使我們的 EBITDA 利潤率恢復到較低的兩位數。雖然我們 2022 年和 2023 年的財務業績反映了外部業務和經濟動蕩的持續影響，但我們有效地應對了挑戰，同時加強了我們的品牌、文化和競爭優勢。通過實現我們的戰略里程碑並保持業務驅動力的完整和健康，我們有能力在未來幾年加速業績增長並為 Sleep Number 股東提供卓越的回報。

Before I turn the call over to Chris, I want to thank him for his exceptional leadership as interim CFO. We appreciate his significant contributions to the business, team and the CFO search. Now Chris will provide additional financial details on our 2023 second quarter and first half performance and outlook for the balance of the year.

在將電話轉接給克里斯之前，我要感謝他作為臨時首席財務官的出色領導。我們感謝他對業務、團隊和首席財務官搜尋做出的重大貢獻。現在，克里斯將提供有關我們 2023 年第二季度和上半年業績以及今年剩餘時間展望的更多財務細節。

Thank you, Shelly. For the second quarter, net sales of $459 million were 16% below last year, with demand slightly below our expectations for the quarter, we leveraged our fulfillment network to deliver incremental smart beds from our existing backlog. As a result, we delivered nearly 77,000 smart bed units with an ARU of just under $6,000.

謝謝你，雪莉。第二季度淨銷售額為 4.59 億美元，比去年同期下降 16%，需求略低於我們對本季度的預期，我們利用我們的履行網絡從現有積壓訂單中交付增量智能床。結果，我們交付了近 77,000 個智能床單元，ARU 略低於 6,000 美元。

Our second quarter gross profit rate of 57.6% was consistent with our expectations. Focused spending controls resulted in operating expenses of $253 million in the quarter down $22 million versus the prior year. We delivered second quarter EPS of $0.03. As a reminder, a shortage of semiconductor chips in last year's first quarter resulted in more than $100 million of margin-rich deliveries shifting into the second quarter of 2022. This shift included our higher-priced FlexFit 3 adjustable bases and related smart beds.

我們第二季度毛利率為57.6%，符合我們的預期。重點支出控制導致本季度運營支出為 2.53 億美元，比上年同期減少 2200 萬美元。我們第二季度的每股收益為 0.03 美元。提醒一下，去年第一季度的半導體芯片短缺導致超過 1 億美元的利潤豐厚的交付轉移到 2022 年第二季度。這一轉變包括我們價格較高的 FlexFit 3 可調節底座和相關智能床。

Last year's second quarter net sales, ARU gross margin and net operating profit all benefited from this higher margin backlog reduction. This resulted in prior year second quarter EPS of $1.54 in what is traditionally our lowest sales and EPS quarter of the year.

去年第二季度的淨銷售額、ARU 毛利率和淨營業利潤均受益於利潤率較高的積壓訂單減少。這導致去年第二季度每股收益為 1.54 美元，這也是我們歷來銷售額和每股收益最低的季度。

Now I'll spend a few minutes covering our year-to-date financial results before turning to our full year outlook. Year-to-date net sales declined 8% to $985 million with demand down high single digits year-over-year. The first half of 2023 included approximately $50 million of net sales benefit from the servicing of excess backlog, which was similar to the benefit in the first half of the prior year. Our year-to-date gross margin rate of 58.3% was consistent with the prior year. We offset deleverage from the net sales decline with pricing actions easing of commodities and ongoing operating efficiencies.

現在，我將花幾分鐘介紹我們今年迄今為止的財務業績，然後再轉向我們的全年展望。年初至今的淨銷售額下降了 8%，至 9.85 億美元，需求同比下降了高個位數。 2023 年上半年，超額積壓訂單服務帶來約 5000 萬美元的淨銷售收益，與上一年上半年的收益類似。年初至今，我們的毛利率為 58.3%，與上年持平。我們通過商品定價行動的放鬆和持續的運營效率來抵消淨銷售額下降帶來的去槓桿化。

Importantly, our year-to-date gross profit rate is up nearly 300 basis points from the back half of last year as we continue to recover from the disruption of chip shortages and related operating inefficiencies. Year-to-date we've generated net operating profit of $37 million compared with $54 million for the same period last year. The year-over-year decline in gross margin dollars was partially offset by a $36 million reduction in operating expenses.

重要的是，隨著我們繼續從芯片短缺和相關運營效率低下的影響中恢復過來，我們今年迄今的毛利率比去年下半年增長了近 300 個基點。今年迄今為止，我們的淨利潤為 3,700 萬美元，而去年同期為 5,400 萬美元。毛利率同比下降被運營費用減少 3600 萬美元部分抵消。

Here are specific actions we have taken year-to-date to reduce operating expenses versus the prior year. We've driven media efficiency leverage of 50 basis points for the first half of the year. We adjusted consumer financing offers to mitigate increased costs associated with this higher interest rate environment. We have slowed our store actions and are now planning net new store growth of 1% year-over-year, which is down about 10 stores versus our original plan for the year.

以下是我們今年迄今為止為減少與上一年相比的運營費用而採取的具體行動。今年上半年，我們已將媒體效率槓桿提高了 50 個基點。我們調整了消費者融資方案，以減輕與高利率環境相關的成本增加。我們已經放慢了門店行動，目前計劃新店淨增長同比 1%，比我們今年的原計劃減少了約 10 家門店。

We reduced labor cost as we optimize staffing levels and our G&A and R&D expenses are also down versus the prior year. We generated $0.54 of EPS for the first 6 months of 2023 compared with $1.60 for the same period last year. Our year-to-date results include a $0.46 headwind from $13 million more in interest expense than a year ago. We generated $19 million of operating cash flow for the first 6 months of the year compared to $29 million for the same period last year.

我們通過優化人員配置水平降低了勞動力成本，我們的一般管理費用和研發費用也比上一年有所下降。 2023 年前 6 個月，我們的每股收益為 0.54 美元，而去年同期為 1.60 美元。我們今年迄今為止的業績包括 0.46 美元的逆風，利息支出比一年前增加了 1300 萬美元。今年前 6 個月，我們產生了 1,900 萬美元的運營現金流，而去年同期為 2,900 萬美元。

Turning to liquidity and leverage. We ended the quarter with $334 million of liquidity under our revolving credit facility and a leverage ratio of 4.7x EBITDAR, below our amended 5x covenant. Given the uncertain macro environment, we partnered with our bank group to extend the 5x EBITDAR covenant through our fiscal third quarter. We continue to expect to end the year with a leverage ratio under 4x EBITDAR. We have updated our 2023 full year EPS outlook to a range of $1.25 to $1.75 per share, which narrows the range by $0.25 versus our previous guidance.

轉向流動性和槓桿。截至本季度末，我們的循環信貸安排下的流動資金為 3.34 億美元，槓桿率為 4.7 倍 EBITDAR，低於我們修訂後的 5 倍承諾。鑑於宏觀環境的不確定性，我們與銀行集團合作，將 5 倍 EBITDAR 承諾延長至第三財季。我們繼續預計年底槓桿率將低於 4 倍 EBITDAR。我們已將 2023 年全年 EPS 展望更新至每股 1.25 美元至 1.75 美元的範圍，與我們之前的指導相比，該範圍縮小了 0.25 美元。

Here are specific assumptions regarding our full year outlook. For the full year, we expect net sales to be down low to mid-single digits, which is approximately 1 to 2 points lower than our prior expectations. This is reflective of lower demand in the first half of the year. For the back half, we expect net sales down low single digits to up mid-single digits on improving demand as we face easier comparisons and fully benefit from next-gen smart bed introductions. As a reminder, year-over-year backlog changes represent a 5- to 6-point headwind in the back half of the year as we returned to normalized backlog levels at the end of the second quarter.

以下是有關我們全年展望的具體假設。就全年而言，我們預計淨銷售額將下降至個位數中低位，比我們之前的預期低約 1 至 2 個百分點。這反映了今年上半年的需求下降。對於下半年，我們預計隨著需求的改善，淨銷售額將從低個位數下降到中個位數，因為我們面臨更容易的比較並充分受益於下一代智能床的推出。提醒一下，隨著我們在第二季度末恢復到正常的積壓水平，積壓的同比變化意味著今年下半年出現了 5 到 6 個百分點的逆風。

We continue to expect at least 150 basis points of gross margin rate expansion in 2023. We expect more than $100 million in cash from operations in 2023 and positive free cash flows. Our guidance includes $0.18 of headwind in the back half of the year from an expected $5 million increase in interest expense year-over-year.

我們繼續預計 2023 年毛利率至少將增長 150 個基點。我們預計 2023 年運營現金將超過 1 億美元，自由現金流為正。我們的指導包括今年下半年利息支出預計同比增加 500 萬美元，帶來 0.18 美元的阻力。

We also want to provide additional clarity regarding third and fourth quarter performance expectations. For the third quarter, we expect EPS to be slightly below last year's third quarter EPS of $0.22. Specifically, we are expecting demand to be up mid- to high single digits compared to last year with net sales down low to mid-single digits due to the impact of year-over-year backlog changes. We anticipate an increase in backlog in this year's third quarter as we optimize for efficiency with our newly transformed fulfillment network, including staffing levels.

我們還希望進一步明確第三和第四季度的業績預期。對於第三季度，我們預計每股收益將略低於去年第三季度的每股收益 0.22 美元。具體來說，我們預計與去年相比，需求將增長中個位數至高個位數，而由於同比積壓變化的影響，淨銷售額將下降至中個位數。我們預計，隨著我們通過新轉型的履行網絡（包括人員配置水平）來優化效率，今年第三季度的積壓量將會增加。

Also, for the third quarter, we expect a gross margin rate of approximately 58%. This includes transition costs associated with promotional closeout activity of our existing smart beds and launch costs related to setting all stores with next-generation smart beds. For the fourth quarter, we are expecting demand to be up mid-single to low double digits with net sales up mid- to high single digits. We expect our Q4 gross margin rate to approach 60% as our margin initiatives mature. We expect to end the year with a normalized backlog.

此外，我們預計第三季度的毛利率約為58%。這包括與我們現有智能床的促銷清倉活動相關的過渡成本，以及與為所有商店設置下一代智能床相關的啟動成本。對於第四季度，我們預計需求將增長中個位數至低兩位數，淨銷售額將增長中個位數至高個位數。隨著我們的利潤計劃的成熟，我們預計第四季度的毛利率將接近 60%。我們預計年底時積壓情況將正常化。

I will now turn the call back to Shelly for a few closing comments prior to opening up the call for Q&A.

現在，我將把電話轉回給雪莉，在開始問答電話之前，請其發表一些結束語。

I'm extremely grateful to our highly engaged team. whose commitment to our purpose is apparent every day in their innovative mindset, dedication to our stakeholders and consistent execution of our strategy. Our investments and achievement of strategic milestones along with major operational improvements, a digitally connected customer and world-class partnerships have transformed our company, revolutionized the industry and positioned us for significant value creation in the future.

我非常感謝我們高度敬業的團隊。他們對我們目標的承諾每天都體現在他們的創新思維、對利益相關者的奉獻以及對我們戰略的一致執行中。我們的投資和戰略里程碑的實現，以及重大運營改進、數字化互聯的客戶和世界一流的合作夥伴關係已經改變了我們的公司，徹底改變了行業，並使我們在未來創造重大價值。

Now Chris, Dave and I will respond to your questions. Lisa, please open the line.

現在克里斯、戴夫和我將回答你們的問題。麗莎，請接通電話。

(Operator Instructions) We'll take the first question from Bobby Griffin, Raymond James.

（操作員說明）我們將回答鮑比·格里芬、雷蒙德·詹姆斯提出的第一個問題。

I guess first, and Chris, maybe I missed a few of the details there, but -- can we just spend a little time unpacking the acceleration in demand that's implied to kind of get to the guidance because it seems things are still running negative at least as at the end of the second quarter. And I know the comparisons get a little easier starting here in 3Q, I believe they ease by 4% or so. Is that the main function of what gives you guys the confidence in demand going back positive? Or is there some other embedded assumptions in there from the new product launches or whatnot or pricing or whatnot that helps you kind of get to that positive demand clip?

我想首先，克里斯，也許我錯過了一些細節，但是 - 我們可以花一點時間來解開需求的加速，這意味著某種程度的指導，因為事情似乎仍然在負增長至少截至第二季度末。我知道從第三季度開始，比較會變得容易一些，我相信它們會減少 4% 左右。這是讓你們對需求回升充滿信心的主要作用嗎？或者是否有一些其他嵌入的假設來自新產品的發布或其他什麼或定價或其他什麼可以幫助你達到積極的需求剪輯？

Great. Thanks for the question, Bobby, I will comment on this. First, our expectations for demand in the third quarter are up mid- to high single digits as you noted. We're coming from a place of progression in demand. We've had positive improving demand trends since the start of the year, although a bit slower than we had originally planned, which put us a couple of points behind in demand here coming out of second quarter. But through second quarter, we believe we took market share. We outperformed each of the periods, demand steadily improved and we were down low single digits here in May and June. And that steady improvement has continued here into the third quarter, July month-to-date were flat to prior year, which is where we expected to be as we head into the third -- the balance of the third quarter with expectations of mid- to high single digits. Yes, compares as a factor.

偉大的。謝謝你的提問，鮑比，我會對此發表評論。首先，正如您所指出的，我們對第三季度需求的預期為中高個位數。我們來自需求不斷增長的地方。自今年年初以來，我們的需求趨勢一直在積極改善，儘管比我們最初計劃的要慢一些，這使我們第二季度的需求落後了幾個百分點。但通過第二季度，我們相信我們佔據了市場份額。我們的表現優於每個時期，需求穩步改善，五月和六月我們的業績下降了低個位數。這種穩定的改善一直持續到第三季度，7 月至今與去年同期持平，這正是我們進入第三季度時的預期——第三季度的平衡與中期的預期到高個位數。是的，比較作為一個因素。

Importantly, our initiatives innovation, all next-gen smart bed implementation, along with our next level -- the next fleet next level campaign are the big drivers of demand in our business. And we like what we're seeing here early on. We see green shoots. There's consumer sentiment moving the right direction. We have positive search numbers for our brand. We have positive traffic as we're heading into the time period in the biggest event of the year. So we like what we're seeing, and we had a big progress, big demand trend progress here in the first half, and we expect that to continue in the back half.

重要的是，我們的創新舉措、所有下一代智能床的實施以及我們的下一個水平——下一個車隊下一個水平的活動是我們業務需求的主要驅動力。我們喜歡我們早期在這裡看到的東西。我們看到了綠芽。消費者情緒正朝著正確的方向發展。我們的品牌搜索量良好。隨著我們進入一年中最大活動的時間段，我們的客流量很高。因此，我們喜歡我們所看到的情況，上半年我們取得了很大的進步，需求趨勢也取得了很大的進展，我們預計這種情況將在下半年繼續下去。

Okay. I appreciate that helpful. For the improvement that we saw quarter-to-date, was just to help us kind of connect the dots, was the promotional aspects in 2Q of this year, relatively similar to 2Q of last year, so we can read into this improvement that we saw as real and fundamental? Or was there something different in terms of closeouts or promotional calendar that might have been impacting what we saw throughout the second quarter and into July?

好的。我很感激你的幫助。對於我們本季度迄今看到的改進，只是為了幫助我們把各個點聯繫起來，今年第二季度的促銷方面，與去年第二季度相對相似，所以我們可以解讀我們的這一改進被視為真實且基本的嗎？或者在清倉或促銷日曆方面是否有什麼不同可能影響我們在整個第二季度和進入 7 月份看到的情況？

Well, it's a great question. And absolutely, we continue to drive promotional activity. And I think one of the benefits of our vertical model is we can adjust and make changes in pretty real time and certainly within the quarter. Closeout is a great example of that. We plan for our closeouts in the second quarter and we delivered accelerated units at the low end of our line through our closeout activity.

嗯，這是一個很好的問題。當然，我們會繼續推動促銷活動。我認為我們垂直模型的好處之一是我們可以實時調整和做出改變，當然是在一個季度內。收尾就是一個很好的例子。我們計劃在第二季度進行清倉，並通過清倉活動在產品線的低端交付加速單位。

We did not drive the top line as big as we had hoped we would here in that closeout period in the June timeframe. So we saw the unit impact, very positive we did not get incremental demand lift from that. So when you look at that and you look at where our performance and the step-up of performance, it's been progressive all year. We see it as real. I think July is another good example of that. And now we'll move into some higher ARU with our next-gen smart beds and continue to drive our performance going forward.

在 6 月份的收尾階段，我們並沒有像我們希望的那樣推動營收增長。因此，我們看到了單位影響，非常積極的是，我們沒有從中獲得增量需求提升。因此，當你看看我們的表現和表現的提升時，你會發現全年都在進步。我們認為它是真實的。我認為七月是另一個很好的例子。現在，我們將通過下一代智能床進入更高的 ARU，並繼續推動我們的業績向前發展。

I appreciate the details. I'll turn it over to somebody else. Best of luck in the back half of year.

我很欣賞細節。我會把它交給別人。祝下半年好運。

Next, we'll take a question from Brad Thomas, KeyBanc Capital Markets.

接下來，我們將回答 KeyBanc Capital Markets 的 Brad Thomas 的問題。

I want to ask a little bit about the Synchrony relationship and what you're seeing out of them. I believe they've been public recently about saying that they kind of selectively done some tightening where they perhaps lower the approval rate and lower the amount that they're approving. Just curious how important they've been to you here of late and what you're seeing out of them, just given their importance to your business?

我想問一些有關同步關係的問題以及您從其中看到的內容。我相信他們最近公開表示他們有選擇地進行了一些緊縮政策，他們可能會降低批准率並降低批准的金額。只是好奇他們最近對您有多重要以及您從他們身上看到了什麼，只是考慮到他們對您的業務的重要性？

Yes. Thanks for the question, Brad. Synchrony is certainly an important partner, and our customers at Sleep Number are important to the Synchrony portfolio as well. So we've made adjustments in our financing strategy which have been very favorable for us, especially from an efficiency or margin and productivity standpoint. And we took on these actions in Q2, we tested into them, and we like what we're seeing. We've been able to mitigate a lot of cost increase related to interest. The programs have been effective. Our approval rates and sales conversion and financing are all in line with where we expect. So a specific answer to your question, no, we have not seen an impact based on the actions that you highlighted.

是的。謝謝你的提問，布拉德。 Synchrony 無疑是一個重要的合作夥伴，我們 Sleep Number 的客戶對於 Synchrony 產品組合也很重要。因此，我們對融資策略進行了調整，這對我們非常有利，特別是從效率、利潤和生產率的角度來看。我們在第二季度採取了這些行動，並對它們進行了測試，我們喜歡我們所看到的。我們已經能夠減少大量與利息相關的成本增加。這些計劃是有效的。我們的批准率、銷售轉化率和融資都符合我們的預期。因此，對您的問題的具體回答是，不，我們沒有看到您強調的行動產生的影響。

Got you. Okay. And then just a follow up on Bobby's earlier comment as we think about demand in the back half -- can you just give us some updated thoughts on how you're thinking about the benefits from the average transaction size and how you're thinking about promotions and if at all, that might be different than what your plans were 3 or 6 months ago?

明白你了。好的。然後，在我們考慮後半部分的需求時，對鮑比之前的評論進行跟進——您能否給我們一些最新的想法，說明您如何看待平均交易規模的好處以及您如何考慮促銷活動，如果有的話，可能與您 3 或 6 個月前的計劃有所不同？

Yes. I think the promotion difference, I'll maybe start there. In Q2, we pulled forward our closeout activity closer to the start of June to drive increased units and demand, and we did drive increased units not so much on the overall top line. So that would be a good example of an adjustment. Right now as we head into the back half, we've made some adjustments to our financing plans based on what we've learned along the way. And we utilize financing programs and discounts as a conversion tool. So that's probably the area where we've made the adjustments. We are excited about our next-gen smart bed line here with the whole new portfolio and Climate360 and having those important drivers of our top line, along with the advancement of the advertising. And we also look at a number of leading indicators and we look at traffic, sentiment, we have our econometric model and our year-over-year, importantly, the 13-week trend.

是的。我認為晉升的差異，我可能會從那裡開始。在第二季度，我們將清倉活動提前到六月初，以推動單位數量和需求的增加，但我們確實推動了單位數量的增加，但在整體營收上並沒有那麼大。所以這將是一個很好的調整例子。現在，當我們進入下半年時，我們根據一路上所學到的知識對我們的融資計劃進行了一些調整。我們利用融資計劃和折扣作為轉換工具。這可能就是我們進行調整的領域。我們對我們的下一代智能床系列以及全新的產品組合和 Climate360 感到興奮，並擁有我們收入的重要驅動力以及廣告的進步。我們還關註一些領先指標，關注流量、情緒，我們有計量經濟模型，以及重要的 13 週趨勢。

Again, we've continued to see progression, positive progression on that 13-week trend. And then we also look at our performance compared to 2019. And we had a very robust almost about a 20% increase to 2019 in the first half. We're not expecting as high of an increase to 2019 in the back half, which gives us some room to outperform.

我們再次看到 13 週趨勢的進展，積極的進展。然後我們還比較了與 2019 年相比的表現。上半年我們的業績比 2019 年增長了約 20%，非常強勁。我們預計 2019 年下半年的增幅不會那麼高，這給了我們跑贏大市的空間。

The next question is Peter Keith, Piper Sandler.

下一個問題是彼得·基思（Peter Keith）、派珀·桑德勒（Piper Sandler）。

Shelly, just I want to dig into some more of those green shoots to get us comfortable with the demand outlook for the back half. I guess with the new product line, you have had the M7 and the i10 in the marketplace now for a couple of weeks. Has the consumer reaction been positive on those newer models such that those specific models have moved up within your sales mix?

雪莉，我只是想深入挖掘更多的萌芽，讓我們對後半段的需求前景感到滿意。我想隨著新產品線的推出，M7 和 i10 已經上市幾週了。消費者對這些新型號的反應是否積極，從而使這些特定型號在您的銷售組合中有所提升？

Thanks for the question, Peter. Our frontline has been really excited about our new model. So they have performed very well since the launch, and we're just completing the set in all stores for all next-gen smart beds. We're almost done. We have a few left here over the coming days. And we're on track with our expectations and feel very confident about our ability and to some degree, the ease of fully transitioning to all [one line] in the marketplace as we head into the Labor Day event. So we're excited about our promotional plans and feel they're right on track with where they need to be, considering price sensitivity with some consumers yet the high value that our Climate360 gives at the top of our line. So yes, we feel bullish about where we are.

謝謝你的提問，彼得。我們的前線人員對我們的新模型感到非常興奮。因此，自推出以來，它們的表現非常好，我們剛剛完成所有商店中所有下一代智能床的設置。我們快完成了。未來幾天我們還剩下一些。我們正在實現我們的期望，並且對我們的能力以及在某種程度上，當我們進入勞動節活動時完全過渡到市場上的所有[一條線]的輕鬆性非常有信心。因此，我們對我們的促銷計劃感到很興奮，並認為它們正處於預期的軌道上，考慮到一些消費者對價格的敏感性，以及我們的 Climate360 為我們提供的最高價值。所以，是的，我們對我們的現狀感到樂觀。

Okay. So I guess, has there been a standout demand for those initial products in the market?

好的。所以我想，市場上對這些初始產品的需求是否突出？

They have performed slightly ahead of our expectations while we've been in close out. It's small at this time because we haven't had a lot against it. So the real demonstration is now.

當我們已經接近尾聲時，他們的表現略高於我們的預期。目前規模很小，因為我們還沒有遇到太多反對。所以真正的示範是現在。

Okay. And then I wanted to just touch on the commodity costs, which have been a headwind for you and now a future opportunity. I think at the beginning of the year, you were expecting about $15 million to $20 million of relief or recovery.

好的。然後我想談談商品成本，這對你們來說是一個阻力，但現在卻是一個未來的機會。我想在今年年初，您預計會獲得約 1500 萬至 2000 萬美元的救濟或恢復資金。

What's going on now that we're at midyear. Has anything changed? Maybe is there a little bit more relief, less relief give us an update on how that's looking.

現在已經是年中了，現在發生了什麼？有什麼改變嗎？也許是有更多的緩解，還是更少的緩解，讓我們了解一下情況的最新情況。

Yes. Peter, this is Dave. I would say largely the commodity benefits that we expected for the year are coming in as planned. We talked about that in the first quarter. And I think as we look at the full year and getting to that 150 basis points of expansion, it's still really the 3 drivers that we talked about at the beginning of the year, which is pricing is one of them that we've taken. It's the commodity relief that we talked about, and it's the mix benefits that we're getting from having Climate360 at the high end of our line, be a growing and important part of our mix.

是的。彼得，這是戴夫。我想說的是，我們今年預期的商品收益很大程度上正在按計劃實現。我們在第一季度討論過這個問題。我認為，當我們回顧全年並實現 150 個基點的擴張時，這實際上仍然是我們在年初討論的 3 個驅動因素，其中定價是我們採取的其中之一。這是我們談論的大宗商品救濟，也是我們從高端產品線 Climate360 中獲得的綜合效益，成為我們產品組合中不斷增長的重要組成部分。

So I think if we look at those 3 drivers, there's always puts and takes each year, but those 3 drivers are coming in as planned. And I think we continue to see additional opportunities on the commodity side for the back half of the year and beyond as we just kind of work through unraveling some of the pressures that we've taken on over the last couple of years.

所以我認為，如果我們看看這 3 名車手，每年都會有變化，但這 3 名車手都會按計劃加入。我認為，今年下半年及以後，我們將繼續在大宗商品方面看到更多機會，因為我們只是在努力緩解過去幾年所承受的一些壓力。

Your next question comes from Atul Maheswari, UBS.

您的下一個問題來自瑞銀集團的 Atul Maheswari。

Shelly, I had a question about your media strategy. It sounds like media costs are down meaningfully given you're leveraging on lower sales. So do you run the risk of lowering the efficacy of the launch given historically sleep number and others in the industry have typically raised media spending ahead of important launches.

雪莉，我有一個關於你的媒體策略的問題。鑑於您正在利用較低的銷售額，聽起來媒體成本已顯著下降。那麼，考慮到歷史上的睡眠時間和業內其他人通常會在重要發布之前增加媒體支出，您是否會面臨降低發布效率的風險？

Atul, thank you for your question. Media is such an important part of our demand-driving formula. And we do expect efficiency on our media compared to last year's environment. Last year, we were -- we're in a much stronger position than we were a year ago. A year ago, we did not have the supply we needed of chips. And it impacted not only our delivery timeframe, it also impacted our ability to offer our full assortment. And so we had tremendous limitations and media, media wasn't as efficient as being in the situation we are today with strong, including a full new line of smart beds and Climate360.

阿圖爾，謝謝你的提問。媒體是我們需求驅動模式的重要組成部分。與去年的環境相比，我們確實預計我們的媒體效率會更高。去年，我們比一年前處於更有利的地位。一年前，我們沒有所需的芯片供應。它不僅影響了我們的交貨時間，還影響了我們提供全品類產品的能力。因此，我們面臨著巨大的限制和媒體，媒體的效率不如我們今天所處的情況，包括全新的智能床系列和 Climate360。

So we are driving greater efficiencies while also driving traffic and much stronger search interest to our brand versus other brands in the industry. So we had 50 basis points of leverage in the first half. We do expect leverage in the back half, and we also expect to fully support our next-generation smart beds and lean into it. Part of what we utilize as an econometric model, which helps us understand based on consumer sentiment and many other factors where to place that next dollar and how many dollars to lean into it, what that return is going to be. So we're approaching it prudently given the environment we're in and given our focus on taking share as well as expanding margin.

因此，與業內其他品牌相比，我們在提高效率的同時也提高了我們品牌的流量和搜索興趣。因此，上半年我們的槓桿率為 50 個基點。我們確實期望下半年能夠發揮槓桿作用，我們也期望全力支持我們的下一代智能床並投入其中。這是我們用作計量經濟學模型的一部分，它可以幫助我們根據消費者情緒和許多其他因素了解在哪裡放置下一美元以及投入多少美元，以及回報將是多少。因此，考慮到我們所處的環境，以及我們專注於佔領市場份額和擴大利潤率，我們正在謹慎對待這一問題。

Got it. That's super helpful. Shelly, just my follow-up, it sounds like the 2023 guidance is fourth quarter heavy. So as things stand today, if we were to understand the risk to this guidance, is the greater risk of a miss on the top line? Or is there a greater risk of a miss on the gross margin?

知道了。這非常有幫助。 Shelly，我想跟進一下，聽起來 2023 年的指導對第四季度的影響很大。因此，就目前的情況來看，如果我們要了解這一指引的風險，那麼錯過營收的風險是否更大？還是毛利率達標的風險更大？

Well, as you think about the shape of Q3 and Q4, I'll start with both sales and margin. So we expect a net sales decline for third quarter, in part due to the year-over-year backlog changes. And gross margin impact of the onetime product portfolio transition cost, they're all hitting in the third quarter.

好吧，當你考慮第三季度和第四季度的情況時，我將從銷售額和利潤率開始。因此，我們預計第三季度的淨銷售額將下降，部分原因是積壓訂單同比變化。一次性產品組合轉型成本對毛利率的影響，都在第三季度受到影響。

So while we expect continued demand improvements, including the mid- to high single-digit growth in Q3, we were a few points behind demand expectations in the second quarter, which resulted in a lower backlog heading into the third quarter. We're very focused on fulfillment efficiency, and we're expecting to build a little backlog in Q3. So we'll be benefit or building backlog from the low levels that we're entering the quarter with.

因此，雖然我們預計需求將持續改善，包括第三季度實現中高個位數增長，但第二季度的需求預期落後幾個百分點，這導致進入第三季度的積壓訂單減少。我們非常注重履行效率，預計在第三季度會積壓一些訂單。因此，我們將從進入本季度的低水平中受益或積壓積壓。

So when you look at the fourth quarter, we expect progressive demand improvement. So Q3, up mid- to high single digits and then Q4 up mid-single digits to low double digits. And this is a continuation of what we've been seeing in demand. And it also contemplates our initiatives as they continue to progress and how we layer on to those initiatives throughout the months of the back half and also the compare is getting increasingly easier as we approach the fourth quarter.

因此，當你觀察第四季度時，我們預計需求將逐步改善。因此，第三季度，中個位數上升到高個位數，然後第四季度，中個位數上升到低兩位數。這是我們所看到的需求的延續。它還考慮了我們的舉措不斷取得進展，以及我們如何在下半年的幾個月中分層實施這些舉措，而且隨著我們接近第四季度，比較變得越來越容易。

And Atul, just to add a little color on gross margin as a part of your question. So first half of the year, we did 58.3% gross margin rate, which was right on top of what we had expected. And importantly, it was almost 300 basis points improvement from the back half of last year. So as we head into the back half of this year, we're going up against, I'll call it, relative -- a much challenged compare from the prior year.

阿圖爾，只是為了在你的問題中對毛利率添加一點色彩。所以上半年我們的毛利率達到了58.3%，超出了我們的預期。重要的是，比去年下半年提高了近 300 個基點。因此，當我們進入今年下半年時，我們將面臨，我稱之為相對的——與上一年相比，我們面臨著很大的挑戰。

And the initiatives that really help us achieve that 58.3% in the first half of the year are intact for the back half of the year. So we're looking at a gross margin rate of 58% to 59%. We certainly recommend if people have a chance to go out and look at the supporting deck we put on our website that covers how we're thinking about the back half versus the first half and as compared to the back half of last year.

上半年真正幫助我們實現 58.3% 的舉措在下半年仍然完好無損。因此，我們預計毛利率為 58% 至 59%。我們當然建議人們有機會出去看看我們在網站上發布的支持平台，其中涵蓋了我們如何看待下半年與上半年以及與去年下半年相比。

And that kind of shows you the progression we expect in the back half of the year and frankly, the fact that we aren't expecting our gross margin rate in the back half of the year to be materially higher than the first half of the year with the initiatives intact and what we think is going to be a stronger top line year-over-year as well.

這向您展示了我們預計下半年的進展，坦率地說，我們預計下半年的毛利率不會大幅高於上半年這些舉措完好無損，我們認為收入也將逐年增長。

Got it. Okay. That is helpful. If I could sneak in one last one. Shelly or Dave who wants to answer it. Like what has been the percentage of your sales in the -- historically that have happened on financing? And is that percentage lower or higher today?

知道了。好的。這很有幫助。如果我能偷偷溜進最後一張就好了。雪莉或戴夫想要回答這個問題。比如，歷史上您的銷售中融資所佔的百分比是多少？今天這個百分比是更低還是更高？

Yes. It's about 50%, and it's steady.

是的。大約是50%，而且很穩定。

Got it. good luck with the rest of the year.

知道了。祝今年剩下的時間一切順利。

We'll now hear from Seth Basham with Bush Securities.

我們現在將聽取布什證券公司塞斯·巴沙姆 (Seth Basham) 的發言。

My first question is just around pricing on the new line. Can you remind us, is there a price increase that you're taking on any models that's substantial relative to the previous models?

我的第一個問題是關於新產品線的定價。您能否提醒我們，您對某些型號的價格上漲是否比以前的型號大幅上漲？

Yes, Seth. So we did -- when we introduced the new [M&I] models this year, we have taken $100 of pricing on those new models. And that went into effect, I think, in April of this year. And if you think about pricing more broadly for the year, we are expecting around 3 to 4 points of benefit from pricing. That would include the actions we took with the new line as well as the wrap around pricing from what we took last year.

是的，賽斯。所以我們做到了——當我們今年推出新的 [M&I] 型號時，我們對這些新型號採取了 100 美元的定價。我認為該規定於今年四月生效。如果您更廣泛地考慮今年的定價，我們預計定價將帶來大約 3 到 4 個百分點的收益。這將包括我們對新產品線採取的行動以及我們去年採取的環繞定價。

We did take some actions in both particularly August and December of last year, which are providing additional benefit as we get the full year benefit this year. So yes, $100 on the top of the line and then the wraparound benefit from the rest of the actions we took last year.

我們確實在去年 8 月和 12 月採取了一些行動，這些行動為我們今年獲得全年福利提供了額外的福利。所以，是的，最高 100 美元，然後從我們去年採取的其餘行動中受益。

Got it. Okay. And the margin richness of the new products with limited price increases? Is it a much higher margin rate that you should earn on those new products?

知道了。好的。價格上漲有限的新產品的利潤豐富度如何？您應該從這些新產品中獲得更高的利潤率嗎？

I would consider it to be relatively similar, Seth, relative to the margin profile. I would just say similar.

賽斯，我認為相對於保證金概況來說，它是相對相似的。我只想說類似。

Got it. Can you just remind us then the drivers behind the new line? What are the big changes in the features and functionality. I think that there are some changes in selling internal components like that was supposed to be [cost efficiency], what else is different?

知道了。您能提醒我們新線路背後的司機嗎？特性和功能有哪些重大變化？我認為銷售內部組件有一些變化，就像應該是[成本效率]，還有什麼不同？

Yes. You're right. And I would start with that we now, with the next-generation smart beds have temperature features across the entire line, starting at the C2, which is just below $1,100. So we're -- we're really excited about having these features, and so it's our front line, especially based on how well Climate360 has performed and the traffic that Climate360 drives to our stores.

是的。你說得對。我首先要說的是，我們現在的下一代智能床在整個產品線上都具有溫度功能，從 C2 開始，它的價格略低於 1,100 美元。因此，我們對擁有這些功能感到非常興奮，因此這是我們的第一線，特別是基於 Climate360 的表現以及 Climate360 為我們商店帶來的流量。

And then also, there is increased comfort and support, which has also been well received by our frontline and it's noticeable to change and very exciting. And then the technology platform with much broader sensors that sets up our future additional revenue streams through digital products and services.

此外，舒適度和支持也有所增加，這也受到了我們前線人員的好評，變化非常明顯，非常令人興奮。然後是具有更廣泛傳感器的技術平台，通過數字產品和服務為我們未來的額外收入流奠定基礎。

And then you also -- you highlighted the -- a large percentage of common parts, which will help us with especially with our new assembly distribution center to be able to add more flexibility and scale in the future as we ramp up units.

然後您還強調了很大比例的通用零件，這將幫助我們，特別是我們新的裝配配送中心，以便我們能夠在未來增加單位數量時增加更多的靈活性和規模。

Great. And my last question for now is just on the promotional environment as you had in the Labor Day with this new product line. Do you think you'll have to be as promotional as you've been around other major holiday selling periods recently.

偉大的。我現在的最後一個問題是關於新產品線在勞動節期間的促銷環境。您是否認為您必須像最近在其他主要假日銷售期間那樣進行促銷？

Well, we'll certainly compete aggressively as we have in the past. It won't be our closeout. Our closeout pricing was more aggressive that you saw in Q2, but we have a lot of confidence in our promotional strategy and how we're applying that throughout the Labor Day period, especially based on like what we've learned in this environment and even this year in the past few months, we apply it quickly to how we're approaching the time periods, the duration how we're utilizing the promotional dollars and financing for optimized results from both the top and bottom line.

好吧，我們肯定會像過去一樣積極競爭。這不會是我們的收尾。我們的清倉定價比您在第二季度看到的更加激進，但我們對我們的促銷策略以及我們如何在整個勞動節期間應用該策略充滿信心，特別是基於我們在這種環境中學到的知識，甚至今年在過去的幾個月裡，我們迅速將其應用於我們如何接近時間段、我們如何利用促銷資金和融資的持續時間，以從頂線和底線獲得優化結果。

We'll take a follow-up from Bobby Griffin, Raymond James.

我們將聽取鮑比·格里芬、雷蒙德·詹姆斯的後續報導。

On the progression, do we expect ARU to step up sequentially meaningfully in 2H and that's part of how we get the improvement as well in demand. So I'm just trying to connect the dots between what units demand can improve versus what dollar demand going to improve? Because it still just looks like a pretty strong step-up even when you factor in the positive comparisons moving in your favor?

在進展方面，我們是否期望 ARU 在 2H 中連續有意義地進步，這是我們如何獲得改進以及需求的一部分。所以我只是試圖將哪些單位需求可以改善與哪些美元需求將改善之間聯繫起來？因為即使你考慮到對你有利的積極比較，它看起來仍然是一個相當強大的進步？

Bobby, this is Dave again. So if you look at the first half of the year, we had an ARU of around $5,900, a little over $5,900. And that was approaching $6,000 in Q2, which is the number I used on the last call. As you look at the back half of the year, we're actually looking at an ARU that's likely going to be quite similar to the first half, so around $5,900. We do expect the ARU to be stronger in Q4 than Q3. Q3 is going to have the impact of the closeout activity that we had late in Q2 at the low end of the line, in particular, which will put a little bit of pressure on ARU, I'd call Q3 maybe closer to 5,800. And then I'd call Q4 around that $6,000 mark for an ARU.

鮑比，這又是戴夫。因此，如果你看看今年上半年，我們的 ARU 約為 5,900 美元，略高於 5,900 美元。第二季度接近 6,000 美元，這是我上次通話時使用的號碼。當你看看今年下半年時，我們實際上看到的 ARU 可能與上半年非常相似，所以約為 5,900 美元。我們確實預計 ARU 在第四季度將強於第三季度。第三季度將受到我們在第二季度末在該線低端進行的清倉活動的影響，特別是這會給 ARU 帶來一點壓力，我認為第三季度可能會接近 5,800 點。然後我認為第四季度的 ARU 價格約為 6,000 美元。

Okay. And that's -- that's a function of the pricing, the new line and then offset by the closeouts or whatnot. Is there any mix going on there? Are you [attaching] more items, more beds or anything else like that or no?

好的。那是——這是定價、新產品線的函數，然後被清倉或諸如此類的東西所抵消。那裡有什麼混合嗎？您是否[附加]更多的物品、更多的床或其他類似的東西？

Yes. So if you look at year-over-year, particularly in Q3, Q3 last year didn't have any Climate360. Q3 this year will have a full quarter of Climate360. Last year, we introduced Climate 360 in October, and we did have a fair amount of deliveries in the fourth quarter. But we do expect even more deliveries in the fourth quarter this year with Climate than we did last year, which will help the ARU year-over-year. And the other thing you're going to get in both Q3 and Q4 is the benefit of the pricing actions we took.

是的。因此，如果你看一下同比情況，特別是第三季度，去年第三季度沒有任何 Climate360。今年第三季度將有整個季度的 Climate360。去年，我們在 10 月份推出了 Climate 360​​，並且在第四季度確實實現了相當數量的交付。但我們確實預計今年第四季度氣候交付量將比去年更多，這將有助於 ARU 同比增長。您將在第三季度和第四季度獲得的另一件事是我們採取的定價行動的好處。

Some of the pricing we took last year was in August, some was in December. So really Q3 didn't get the full benefit of those August promotions or December from pricing action. So we expect both pricing and some mix to help us in both Q3 and Q4 to get those numbers up. So if you do the math, Bob, I just gave it to you, but the back half of last year was $5,200 per unit, which means we're looking at a number north of -- double-digit ARU growth for the back half of the year.

我們去年的定價有些是在 8 月，有些是在 12 月。因此，第三季度確實沒有從 8 月促銷活動或 12 月定價行動中充分受益。因此，我們預計定價和一些組合將幫助我們在第三季度和第四季度提高這些數字。所以，鮑勃，如果你算一下，我剛剛給了你，但去年下半年的每單位價格為 5,200 美元，這意味著我們看到的是下半年的兩位數 ARU 增長。今年的。

At this time, there are no further questions. I'll hand the call back to management for any additional or closing remarks.

目前，沒有其他問題了。我會將電話轉交給管理層，以徵求任何補充或結束語。

Thank you for joining us today. We look forward to discussing our third quarter 2023 performance with you in October. Sleep well and dream big.

感謝您今天加入我們。我們期待在 10 月份與您討論 2023 年第三季度的業績。睡個好覺，夢想遠大。

And once again, that does conclude today's conference. Thank you all for your participation.

今天的會議再次結束。感謝大家的參與。