Sleep Number Corp (SNBR) 2023 Q4 法說會逐字稿

Yes, welcome, everyone to Sleep Number's Q4 and full-year 2013 earnings conference call. (Operator Instructions) Today's call is being recorded. If anyone has any objections, you may disconnect at this time.

是的，歡迎大家參加 Sleep Number 的第四季和 2013 年全年財報電話會議。（操作員說明）今天的通話正在錄音。如果有人有任何異議，您可以此時斷開連接。

I would like to introduce Dave Schwantes, Vice President of Finance and Investor Relations. Thank you, you may begin.

我想介紹一下財務與投資者關係副總裁 Dave Schwantes。謝謝，你可以開始了。

Good afternoon, and welcome to the Sleep Number Corporation fourth-quarter 2023 earnings conference call. Thank you for joining us.

下午好，歡迎參加 Sleep Number Corporation 2023 年第四季財報電話會議。感謝您加入我們。

I am Dave Schwantes, Vice President of Finance and Investor Relations. With me today are Shelly Ibach, our Chair, President, and CEO; and Francis Lee, our Chief Financial Officer.

我是戴夫‧施萬特斯 (Dave Schwantes)，財務與投資者關係副總裁。今天與我在一起的有我們的董事長、總裁兼執行長 Shelly Ibach；和我們的財務長弗朗西斯李。

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.

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資訊以觀看重播。另請參閱我們的新聞稿，以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公認會計準則財務指標和補充財務資訊的對帳。

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.

這次電話會議的主要目的是討論剛結束的財政期間的結果。然而，我們對您問題的評論和答案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。

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, everyone, and thank you for joining our 2023 year end earnings call. My sleep IQ score was 84 last night.

大家下午好，感謝您參加我們的 2023 年年終財報電話會議。昨晚我的睡眠智商分數是 84。

While the consumer demand environment remains challenging for our industry, the swift actions we took to improve demand and reduce costs allowed us to make important progress in the fourth quarter. We are continuing to transform our operating model to improve our financial resilience through the broad-based restructuring actions we discussed with you last quarter. As we streamline our cost structure and strengthen our balance sheet, we are poised for accelerating growth as the mattress industry demand environment improves.

儘管消費者需求環境對我們的行業仍然充滿挑戰，但我們為改善需求和降低成本的迅速行動使我們在第四季度取得了重要進展。我們正在繼續轉變我們的營運模式，透過我們上季度與您討論的廣泛重組行動來提高我們的財務彈性。隨著我們精簡成本結構並強化資產負債表，隨著床墊產業需求環境的改善，我們準備加速成長。

Importantly, our long-term opportunity remains intact as we lead through this transformation. During today's call, I'll start with some observations on the industry and macroeconomic environment, then focus my comments on our performance in the three strategic imperatives for repositioning our business, which are: competing effectively, restoring profit margins, and paying down debt. Following my remarks, Francis will provide further details on our 2023 financial results and 2024 outlook.

重要的是，在我們引領這項轉型的過程中，我們的長期機會仍然完好無損。在今天的電話會議中，我將從對產業和宏觀經濟環境的一些觀察開始，然後重點評論我們在重新定位業務的三個戰略要務方面的表現，這三個戰略要務是：有效競爭、恢復利潤率和償還債務。在我發表演講後，弗朗西斯將提供有關我們 2023 年財務業績和 2024 年前景的更多詳細資訊。

Many of the macroeconomic challenges we discussed during our last call persisted in the fourth quarter. Low consumer sentiment, slower new home purchases, and elevated interest rates continued to pressure demand for our category. Additionally, consumer purchasing power continues its steady downward trend.

我們在上次電話會議中討論的許多宏觀經濟挑戰在第四季度仍然存在。消費者信心低迷、新房購買放緩以及利率上升繼續給我們類別的需求帶來壓力。此外，消費者購買力持續呈現穩定下降趨勢。

We estimate that mattress units in 2023 were below 2015 levels and down more than 25% from their 2020 peak. Per capita spending on mattresses is also nearing historic lows, approaching levels not experienced since the 2008, 2009 great recession. And although we are seeing some indications that the consumer environment may stabilize in the coming year, the mattress industry remains in a historic recession.

我們估計 2023 年的床墊數量將低於 2015 年的水平，並且比 2020 年的峰值下降超過 25%。人均床墊支出也接近歷史低點，接近2008年、2009年經濟大衰退以來從未經歷過的水平。儘管我們看到一些跡象表明消費環境可能在未來一年趨於穩定，但床墊產業仍處於歷史性衰退之中。

Considerations, like price and perceived value, continue to drive consumer purchasing decisions, which remain highly responsive to external factors and events that are disruptive for the mattress industry. This challenging demand environment continue to weigh on our financial results in the fourth quarter, though, we slightly outperformed our demand and cost reduction expectations.

價格和感知價值等因素繼續推動消費者的購買決策，消費者的購買決策仍然對對床墊產業造成破壞的外部因素和事件高度敏感。這種充滿挑戰的需求環境持續影響我們第四季的財務業績，不過，我們的表現略優於我們的需求和成本削減預期。

For the fourth quarter, net sales of $430 million were down 14% from the prior year with demand down low single digits. For the full year, our net sales were $1.89 billion, a year-over-year decline at 11% with demand down high single digits.

第四季淨銷售額為 4.3 億美元，較上年同期下降 14%，需求下降幅度較低。全年淨銷售額為 18.9 億美元，年減 11%，需求下降幅度高達個位數。

Against this backdrop, we executed several actions to strengthen our competitive positioning, which is our first strategic imperative. With consumers' heightened focus on price and value and scrutiny of every purchase, we prioritize actions to increase per consideration and conversion.

在此背景下，我們採取了多項行動來加強我們的競爭地位，這是我們的首要策略要務。隨著消費者更加關注價格和價值以及對每次購買的審查，我們優先採取行動以提高每次考慮和轉換。

We sharpened our marketing messages to emphasize our differentiated benefits of adjustable firmness and temperature, promoting the value of your best sleep every night, and for every budget. We renegotiated with our media partners to improve impressions per dollar spent, optimize the media mix, and reflighted media in Q4 resulting in improved traffic and media ROI.

我們強化了行銷訊息，強調可調節硬度和溫度的差異化優勢，提升您每晚最佳睡眠的價值，滿足各種預算。我們與媒體合作夥伴重新協商，以提高每美元支出的展示次數、優化媒體組合併在第四季度重新轉發媒體，從而提高流量和媒體投資回報率。

We refined our promotional strategy and selling process to focus on smart beds first, before communicating the additional benefits of our smart adjustable bases. This approach is resonating with today's consumer who is acutely focused on value. Our vertical integrated model allows us to stay close to the customer and adjust our marketing strategy and coordinate our in-store an online experience in real time.

我們改進了促銷策略和銷售流程，首先專注於智慧床，然後再傳達智慧可調式底座的額外優勢。這種方法引起了當今高度關注價值的消費者的共鳴。我們的垂直整​​合模式使我們能夠與客戶保持密切聯繫，調整我們的行銷策略，並即時協調我們的店內線上體驗。

We also drove greater brand awareness through our partnership with the NFL. Our why choose a Sleep Number smart bed campaign, featuring Justin Jefferson and Ja'Marr Chase, increased purchase consideration with NFL fans who represents approximately half of the US population.

我們還透過與 NFL 的合作提高了品牌知名度。我們的「為什麼選擇 Sleep Number」智慧床活動由賈斯汀·傑斐遜 (Justin Jefferson) 和賈馬爾·蔡斯 (Ja’Marr Chase) 主演，提高了約占美國人口一半的 NFL 球迷的購買考慮度。

Since implementing these actions, our demand trajectory improved significantly to a low single-digit year-over-year decline in the fourth quarter compared with a double-digit decline in Q3. We also drove positive unit growth on a demand basis in the fourth quarter for the first time since the third quarter of 2021. With this demand performance, we expected that we outperformed the industry in the fourth quarter.

自實施這些行動以來，我們的需求軌跡顯著改善，第四季的年減幅度為個位數，而第三季的下降幅度為兩位數。自 2021 年第三季以來，第四季我們首次推動了需求量的正成長。憑藉這種需求表現，我們預計第四季的表現將優於產業。

With our second strategic imperative, we are taking steps to reduce costs across our business and restore margins. During the third quarter, we began aggressively executing our contingency plans to align our discretionary costs with the softer demand environment.

根據我們的第二個策略要務，我們正在採取措施降低整個業務的成本並恢復利潤。第三季度，我們開始積極執行應急計劃，以使可自由支配成本與疲軟的需求環境保持一致。

In the fourth quarter, we established operating mechanisms and tools to accelerate our restructuring efforts and drive sustainable change across the organization. We have initiated dozens of work streams, with program charters, timelines, and weekly reporting to promote accountability, continuous progress, and recognition as benefits are realized. I'm proud of our team's energy and efforts in executing this cost reduction roadmap and identifying and validating new opportunities.

第四季度，我們建立了運作機制和工具，以加快重組工作並推動整個組織的可持續變革。我們啟動了數十個工作流程，包括計劃章程、時間表和每週報告，以促進問責制、持續進步和在效益實現時得到認可。我為我們團隊在執行成本削減路線圖以及識別和驗證新機會方面所付出的精力和努力感到自豪。

Broadly, our cost reduction initiatives fell into four categories: cost of customer acquisition, including streamlining vendors, and indirect spend based on capability; costs to serve our customers, such as condensing service, outsourcing functions, and increasing digital support assets for greater efficiency; COGS leverage through value engineering, including an exhaustive material cost reduction program; and R&D leverage, as we reprioritize R&D spend to accelerate near term innovation, while driving greater efficiencies.

總的來說，我們的成本削減措施分為四類：客戶獲取成本，包括精簡供應商和基於能力的間接支出；服務客戶的成本，例如壓縮服務、外包功能以及增加數位支援資產以提高效率；透過價值工程發揮銷貨成本的槓桿作用，包括詳盡的材料成本降低計畫；和研發槓桿，因為我們重新調整研發支出的優先順序，以加速近期創新，同時提高效率。

We are also realizing the benefits of the workforce restructuring actions taken in the fourth quarter, which reduced the number of team members to approximately 4,100 at the end of 2023, 7% lower than in 2019. Together, these efforts enabled us to reduce our operating expenses in the fourth quarter before restructuring costs by $24 million, $5 million more than we had planned. For the full year, we reduced operating expenses by $85 million. With our team's commitment to the execution of our cost improvement roadmap, we expect $40 million to $45 million of in-year cost reductions in 2024, and expect full-year operating expenses to be $125 million to $130 million below 2022 levels.

我們也意識到第四季採取的勞動力重組行動的好處，到 2023 年底，團隊成員人數減少至約 4,100 人，比 2019 年減少了 7%。總而言之，這些努力使我們能夠在第四季度將重組成本前的營運費用減少 2,400 萬美元，比我們的計畫多出 500 萬美元。全年營運費用減少了 8500 萬美元。隨著我們團隊致力於執行成本改​​善路線圖，我們預計 2024 年年內成本將減少 4,000 萬至 4,500 萬美元，並預計全年營運費用將比 2022 年水準低 1.25 億至 1.3 億美元。

As a result of this restructuring, we will have a leaner, more efficient business model with higher margins in stronger cash flow as industry trends improve. We also remain intently focused on restoring our gross margin rate to our historical average in the low-60s in a normalized demand environment.

透過此次重組，我們將擁有更精簡、更有效率的業務模式，隨著產業趨勢的改善，我們將擁有更高的利潤率和更強的現金流。我們也繼續專注於在正常化的需求環境中將毛利率恢復到 60 多歲的歷史平均值。

In 2023, we grew gross margin rate by 80 basis points, while navigating a double-digit decline in our net sales as the mattress industry experienced its second consecutive year of recession. In 2024, we are targeting approximately 100 basis points of gross margin rate expansion from the cost improvements initiatives I highlighted earlier. We expect the mattress industry to remain under pressure in 2024, and our outlook for the year reflects that assumption. Thus, we continue to prioritize liquidity and paying down debt, our third strategic imperative.

2023 年，我們的毛利率成長了 80 個基點，同時由於床墊產業連續第二年陷入衰退，我們的淨銷售額出現了兩位數的下降。到 2024 年，我們的目標是透過我先前強調的成本改善措施將毛利率擴大約 100 個基點。我們預計床墊產業在 2024 年仍將面臨壓力，我們對今年的展望也反映了這個假設。因此，我們繼續優先考慮流動性和償還債務，這是我們的第三個策略要務。

In the third quarter of 2023, we took steps aimed at enhancing our financial flexibility, including working with our bank group to amend our financial covenants. Reducing our outstanding credit line balance and related financial leverage remain key priorities for us in 2024 and beyond. The actions we have taken to date and have underway are making Sleep Number a stronger and more durable business.

2023 年第三季度，我們採取了旨在增強財務靈活性的措施，包括與我們的銀行集團合作修改我們的財務契約。減少未償信貸額度餘額和相關財務槓桿仍然是我們 2024 年及以後的首要任務。我們迄今為止已採取和正在進行的行動正在使 Sleep Number 成為更強大、更持久的業務。

As we realize additional benefits of our cost management strategy in 2024, we expect to generate $60 million to $80 million in positive free cash flow and intend to use this cash to pay down debt. We also expect depreciation to be significantly greater than CapEx. With our focus on cash flow generation and paying down debt, we plan to reduce capital expenditures in 2024 by roughly half to approximately $30 million.

隨著我們在 2024 年認識到成本管理策略的額外好處，我們預計將產生 6,000 萬至 8,000 萬美元的正自由現金流，並打算用這些現金來償還債務。我們也預期折舊將顯著高於資本支出。由於我們專注於現金流產生和償還債務，我們計劃在 2024 年將資本支出減少約一半，達到約 3,000 萬美元。

2023 was a challenging year. We have initiated fundamental changes to transform our business, and we have more work to do. That said, our long-term opportunity supported by our consumer innovation strategy remains strong.

2023年這是充滿挑戰的一年。我們已經啟動了根本性變革來實現業務轉型，但我們還有更多工作要做。也就是說，我們的消費者創新策略支援的長期機會仍然強勁。

Sleep remains one of the areas in which consumers have the most unmet need. According to the CDC, one-third of US adults report they usually get less than the recommended amount of sleep. Not getting enough sleep is linked with many chronic diseases and conditions, which threaten our nation's health. And in a recent McKinsey Future of Wellness Survey, sleep ranked as one of the highest wellness priorities among consumers who indicated they are looking for data-driven, science-backed solutions that empower them to take more control over their health outcomes.

睡眠仍然是消費者需求最未被滿足的領域之一。根據疾病預防控制中心的數據，三分之一的美國成年人表示他們的睡眠時間通常低於建議的睡眠時間。睡眠不足與許多威脅我們國家健康的慢性疾病和狀況有關。在最近的麥肯錫健康未來調查中，睡眠被消費者列為最重要的健康優先事項之一，他們表示他們正在尋找數據驅動、有科學支持的解決方案，使他們能夠更好地控制自己的健康結果。

Our competitive advantages, including our connected physical and digital sleep wellness platform, network of millions of smart sleepers, vertically integrated operating model, and purpose-driven team member culture uniquely positions Sleep Number to solve the many untapped opportunities related to sleep across the continuum of care. The foundation of our differentiated long-term value proposition in our smart bed wellness is our smart bed wellness platform, which provides an individually customized adjustable and responsive sleep experience.

我們的競爭優勢，包括我們互聯的實體和數位睡眠健康平台、數百萬智慧睡眠者的網路、垂直整合的營運模式以及目標驅動的團隊成員文化，使Sleep Number 處於獨特的地位，能夠解決整個睡眠過程中與睡眠相關的許多未開發的機會。關心。我們的智慧床健康差異化長期價值主張的基礎是我們的智慧床健康平台，該平台提供個人化客製化的可調式和反應式睡眠體驗。

By effortlessly adjusting to sleeper's unique needs, our smart beds help millions of people achieve more restful sleep every night. In fact, 94% of smart bed sleepers report benefiting from better quality sleep compared with sleeping on a non-smart bed. Our innovative technology supported by a robust portfolio of over 800 patents and patents pending worldwide is a key differentiator in a consolidating and commoditizing smart bed.

透過輕鬆調整睡眠者的獨特需求，我們的智慧床幫助數百萬人每晚獲得更安寧的睡眠。事實上，94% 的智慧床睡眠者表示，與睡在非智慧床上相比，他們的睡眠品質更高。我們的創新技術由全球 800 多項專利和正在申請的專利組成的強大產品組合支持，是整合和商品化智慧床的關鍵差異化因素。

These unique assets empower us to protect and take market share even in a difficult environment. Additionally, our proprietary ecosystem of loyal smart sleepers continues to grow, reaching nearly $3 million at the end of 2023. And their advocacy of our brand is an important element of our future growth.

這些獨特的資產使我們即使在困難的環境下也能保護和佔領市場份額。此外，我們專有的忠誠智慧睡眠者生態系統持續成長，到 2023 年底將達到近 300 萬美元。他們對我們品牌的宣傳是我們未來發展的重要因素。

Our innovation road map supports ongoing engagement initiatives with in this ecosystem. For example, in the fourth quarter, we integrated our loyalty rewards program and customer support into the Sleep Number app. And in 2024, smart sleepers will also be able to shop within the app.

我們的創新路線圖支持該生態系統中持續的參與計劃。例如，在第四季度，我們將忠誠度獎勵計劃和客戶支援整合到了 Sleep Number 應用程式中。到 2024 年，智慧睡眠者還可以在應用程式內購物。

Our average monthly engagement rate of 80% is best in class for digital products. This high engagement with our sleep wellness platform increases customer lifetime value and drives lower cost customer acquisition through referrals. Our vertically integrated operating model enables margin efficiency opportunities, which are amplified with scale through our smart bed ecosystem and optimized fulfillment networks.

我們的平均每月參與率為 80%，是數位產品領域中最好的。與我們的睡眠健康平台的高度互動增加了客戶的終身價值，並透過推薦降低了客戶獲取成本。我們的垂直整​​合營運模式帶來了利潤效率機會，並透過我們的智慧床生態系統和優化的履行網絡隨著規模的擴大而擴大。

In our culture of individuality and well-being reinforced by our team members' dedication to our mission is a vital factor in our successful business model transformation, continued innovation, and profitable growth. We are prepared for accelerating growth, as the mattress industry environment improves.

在我們的文化中，團隊成員對使命的奉獻精神強化了個性和幸福感，這是我們成功實現業務模式轉型、持續創新和獲利成長的重要因素。隨著床墊產業環境的改善，我們已做好加速成長的準備。

I'm grateful for our team's resilience and strong execution, as we work together to build a more sustainable business and capitalize on opportunities to deliver meaningful value for our shareholders.

我感謝我們團隊的韌性和強大的執行力，我們共同努力打造更永續的業務，並利用機會為股東創造有意義的價值。

With that, I'll turn the call over to Francis, who will provide more details on our 2023 financial results and 2024 guidance.

接下來，我會將電話轉給弗朗西斯，他將提供有關我們 2023 年財務業績和 2024 年指導的更多詳細資訊。

Thank you, Shelly, and good afternoon. As we closed fiscal year 2023 and have started the new year, our teams have shown agility and diligence, as we work to build a more durable operating model and greater financial resilience.

謝謝你，雪莉，下午好。在我們結束 2023 財年並開始新的一年之際，我們的團隊展現了敏捷性和勤奮，我們致力於建立更持久的營運模式和更強的財務彈性。

As we navigated a pullback in demand for the industry over the last couple of years, the important actions we are taking will lead to a stronger foundation for our business, which will enable accelerating profitability as the industry backdrop improves. In my comments today, I will focus my remarks in three primary areas. One, review of our fourth quarter and full-year results. Two, progress we have made in our cost restructuring and impacts to our 2024 financial outlook. And three, key assumptions underlying our 2024 guidance.

隨著過去幾年行業需求的回落，我們正在採取的重要行動將為我們的業務奠定更堅實的基礎，隨著行業背景的改善，這將有助於加速獲利。在今天的評論中，我將重點放在三個主要領域。一、回顧我們的第四季和全年業績。第二，我們在成本重組方面取得的進展以及對 2024 年財務前景的影響。第三，我們 2024 年指導的關鍵假設。

Let's move on to a review of our fourth quarter and full year results. Fourth quarter net sales of $430 million were down 14% versus last year. Demand for the quarter was down low-single digits and slightly better than our expectations of a mid-single digit demand declined year over year. Changes in backlog drove a majority of the net sales decline.

讓我們繼續回顧第四季和全年的業績。第四季淨銷售額為 4.3 億美元，比去年同期下降 14%。本季的需求下降了低個位數，略好於我們對中個位數需求年減的預期。積壓訂單的變化是淨銷售額下降的主要原因。

Our fourth-quarter gross margin of 56.6% was up 190 basis points year over year and included the benefit from pricing actions taken over the past 12 months, an improvement in commodity prices. These benefits are partially offset by increased promotional offers aimed at budget and value-conscious consumers and fixed cost deleverage from a year-over-year decline in delivered units.

我們第四季的毛利率為 56.6%，年增 190 個基點，其中包括過去 12 個月採取的定價行動以及大宗商品價格改善帶來的收益。這些好處被針對預算和價值意識消費者的促銷優惠增加以及交付量同比下降帶來的固定成本去槓桿化所部分抵消。

We also faced year-over-year gross margin rate pressure related the mix of FlexFit smart adjustable bases as we had the full good, better, best assortment of FlexFit smart bases in 2023.

我們也面臨與 FlexFit 智慧可調式底座組合相關的同比毛利率壓力，因為我們在 2023 年擁有完整、更好、最好的 FlexFit 智慧底座品種。

In 2022, the smart base portfolio was limited to higher margin product due to semiconductor ships constraints. We were ahead of the plan with cost reduction actions in the fourth quarter with operating expenses pre-restructuring costs down $24 million year over year. We are making broad-based cost cuts across the entire business, impacting all areas of our operating cost structure.

2022 年，由於半導體出貨量限制，智慧基地產品組合僅限於利潤率較高的產品。我們在第四季度採取了成本削減行動，提前完成了計劃，重組前的營運費用年減了 2,400 萬美元。我們正在整個業務範圍內進行廣泛的成本削減，影響我們營運成本結構的所有領域。

We recorded $16 million of restructuring costs in the quarter versus our original 2023 estimate of $10 million. This included the acceleration of a few store closures late in the quarter.

我們本季的重組成本為 1,600 萬美元，而我們最初估計 2023 年為 1,000 萬美元。這包括本季末加速關閉一些商店。

With the advancement of our cost initiatives, we estimate our 2024 restructuring costs will be approximately $12 million. As a reminder, restructuring costs are reported as a separate line item in our financial statements, and we will continue to provide an as-adjusted EPS figure for comparative purposes.

隨著成本計畫的推進，我們預計 2024 年的重組成本將約為 1,200 萬美元。提醒一下，重組成本在我們的財務報表中作為單獨的項目報告，我們將繼續提供調整後的每股盈餘數據以供比較。

We generated $18 million of EBITDA in the quarter versus $23 million last year, primarily due to the year-over-year net sales decline partially offset by a higher gross margin rate, and year-over-year operating expense reductions.

本季我們實現了 1,800 萬美元的 EBITDA，而去年為 2,300 萬美元，這主要是由於淨銷售額同比下降，但被較高的毛利率和同比營運費用減少部分抵消。

Our 2023 full-year results included net sales of $1.89 billion, down 11% versus prior year with demand down high-single digits for the year, our gross margin rate increased 80 basis points for the year. We reduced operating expenses by $85 million or 7% year over year prior to the $16 million of restructuring costs.

我們的 2023 年全年業績包括淨銷售額 18.9 億美元，比上年下降 11%，由於全年需求下降高個位數，我們全年的毛利率增加了 80 個基點。在扣除 1,600 萬美元的重組成本之前，我們的營運費用年減了 8,500 萬美元，即 7%。

We reported a full-year diluted loss per share of $0.68 and a full year as adjusted loss per share of $0.14. Excluding $16 million of restructuring costs recorded in the fourth quarter.

我們報告全年攤薄每股虧損為 0.68 美元，全年調整後每股虧損為 0.14 美元。不包括第四季記錄的 1600 萬美元重組成本。

Adjusted EBITDA declined 14% to $127 million compared to $148 million last year, driven by the net sales decline, partially offset by higher a higher gross margin rate in ongoing operating expense reductions.

調整後 EBITDA 下降 14%，至 1.27 億美元，而去年為 1.48 億美元，原因是淨銷售額下降，但部分被持續營運費用削減帶來的較高毛利率所抵銷。

Now let me discuss in a little more detail the important work we are doing to adjust our cost structure in support of a more durable business model and financial resilience. With the change in demand trends in the third quarter, we have been executing accelerated cost reduction actions across the business to strengthen our financial position, as we continue to navigate the ongoing challenging demand environment for the mattress industry.

現在，讓我更詳細地討論我們為調整成本結構以支援更持久的商業模式和財務彈性所做的重要工作。隨著第三季需求趨勢的變化，我們一直在整個業務範圍內實施加速成本削減行動，以增強我們的財務狀況，同時繼續應對床墊行業持續充滿挑戰的需求環境。

These efforts contributed to the $85 million year-over-year reduction in operating expenses in 2023, and our plans for an additional 40 to $45 million operating expense reduction for 2024. This will result in a two-year cost reduction total of $125 million to $130 million.

這些努力使得 2023 年營運費用年減 8,500 萬美元，並計劃在 2024 年再減少 4,000 至 4,500 萬美元營運費用。這將導致兩年成本總計減少 1.25 億至 1.3 億美元。

Our operational transformation work is progressing with velocity, and we have established operating mechanisms to promote and build sustainable change across the organization. Each initiative we are implementing has been developed with a projected range of cost improvement and relative risk assessment.

我們的營運轉型工作正在快速推進，我們已經建立了運作機制來促進和建構整個組織的可持續變革。我們正在實施的每項措施都是根據預期的成本改進範圍和相對風險評估而製定的。

Some of the specific cost actions we have taken include: workforce reductions across the organization as we enter 2024 with 25% less team members than in 2021, reducing our cost to serve customers through service simplification programs, adjusting hours outsourcing and increasing digital customer support assets. Given the down market environment, we also seized the opportunity to reduce our store density in selected markets and accelerate the closing of lower-performing stores with natural lease expirations. This includes closing stores where we had been testing store proximity in selected markets.

我們採取的一些具體成本行動包括：進入 2024 年，在整個組織內裁員，團隊成員比 2021 年減少 25%，透過服務簡化計畫降低服務客戶的成本，調整外包時間和增加數位客戶支援資產。考慮到低迷的市場環境，我們也抓住機會降低選定市場的門市密度，並加速關閉自然租賃到期的業績不佳門市。這包括關閉我們一直在選定市場測試商店鄰近度的商店。

In each case, we carefully considered the opportunity to transfer sales to other stores in the same DMA or online to minimize lost sales, while reducing overall fixed store costs and increasing total DMA profit, we expect the net impact of store closures to be about a one point drag to the 2024 net sales growth, and we expect to end 2024 with 25 to 30 fewer stores compared to 2023.

在每種情況下，我們都仔細考慮了將銷售轉移到同一DMA 或線上其他商店的機會，以最大限度地減少銷售損失，同時降低總體固定商店成本並增加DMA 總利潤，我們預計商店關閉的淨影響約為拖累 2024 年淨銷售額成長 1 個百分點，我們預期 2024 年底門市數量將比 2023 年減少 25 至 30 家。

We also continue to drive gross margin improvement actions across the business. These actions include value engineering, material cost reductions, and driving additional efficiencies through our manufacturing and home delivery network. We expect to grow our gross margin rate by approximately 100 basis points in 2024. As we move into 2025, we expect to realize additional cost savings as we annualize 2024 cost actions.

我們也持續推動整個業務的毛利率改善行動。這些行動包括價值工程、降低材料成本以及透過我們的製造和送貨上門網路提高效率。我們預計 2024 年毛利率將成長約 100 個基點。進入 2025 年，我們預計將實現 2024 年成本行動年度化，從而實現額外的成本節約。

Now, let me turn to 2024. As Shelly mentioned, we built our 2024 plans on the assumption that the industry does not experience any material recovery from 2024 despite having experienced two years of recessionary demand levels. While the mattress industry is likely at bottoming levels, we feel it is prudent to plan our cost structure on the basis of no improvement in demand levels this year.

現在，讓我把目光轉向 2024 年。正如 Shelly 所提到的，我們制定 2024 年計畫的假設是，儘管經歷了兩年的需求水準衰退，但該行業自 2024 年起不會出現任何實質復甦。雖然床墊產業可能已觸底，但我們認為，在今年需求水準沒有改善的基礎上規劃我們的成本結構是謹慎的。

For our 2024 outlook, we are providing adjusted EBITDA as a primary guidance metric. As we transform our business to a more durable business operating model, we see adjusted EBITDA as the best way to communicate our performance and the earnings power of our business. Adjusted EBITDA is a key metric we are using to track our transformation progress, and in particular, cash generation to pay down debt.

對於 2024 年的展望，我們提供調整後的 EBITDA 作為主要指導指標。當我們將業務轉變為更持久的業務營運模式時，我們將調整後的 EBITDA 視為傳達我們的績效和業務獲利能力的最佳方式。調整後的 EBITDA 是我們用來追蹤轉型進度的關鍵指標，特別是用於償還債務的現金產生。

Let me unpack some of the specific assumptions included in our 2024 outlook. The outlook assumes net sales are down mid-single digits for the year with a low-single digit demand decline. Our net sales guidance assumes 3 percentage points of headwind from year-over-year backlog changes and 1 percentage point from net store closures.

讓我來解釋一下我們 2024 年展望中的一些具體假設。展望假設今年淨銷售額將下降中個位數，而需求下降幅度將小至個位數。我們的淨銷售指引假設積壓訂單年變動將帶來 3 個百分點的阻力，淨門市關閉將帶來 1 個百分點的阻力。

We expect net sales to be down high single digits in the first half of the year based on tougher comparisons, followed by low single-digit growth for the back half of the year, we expect the majority of approximately 100 basis points of gross margin rate expansion in 2024 to be in the back half of the year. Key drivers include further reductions in our material costs through product value engineering and ongoing supplier negotiations.

基於更嚴格的比較，我們預計上半年淨銷售額將出現高個位數下降，隨後下半年將出現低個位數增長，我們預計毛利率大部分約為 100 個基點2024年下半年將進行擴張。主要驅動因素包括透過產品價值工程和持續的供應商談判進一步降低我們的材料成本。

We are also expecting benefit from further optimization of our fulfillment network, including facility closures and using temporary labor where it makes sense. Headwinds for the year include fixed cost deleverage from slightly declining delivered units for the year.

我們還期望從進一步優化我們的履行網路中受益，包括關閉設施和在有意義的情況下使用臨時勞動力。今年的不利因素包括今年交付量略有下降導致的固定成本去槓桿化。

We expect operating expenses to be down $40 million to $45 million versus last year, with the cost savings spread across the P&L. We are estimating restructuring costs of approximately $12 million to be incurred in 2024, with approximately $10 million of the costs falling in Q1. We expect an interest rate of approximately $45 million for the year. The above assumptions support our adjusted EBITDA outlook range for the year of $125 million to $145 million.

我們預計營運費用將比去年減少 4,000 萬至 4,500 萬美元，成本節省將分佈在損益表中。我們預計 2024 年將產生約 1,200 萬美元的重組成本，其中約 1,000 萬美元的成本下降在​​第一季。我們預計今年的利率約為 4500 萬美元。上述假設支持我們調整後的 EBITDA 全年預期範圍為 1.25 億美元至 1.45 億美元。

We remain intently focused on liquidity and balance sheet strength, and expect to meet our liquidity needs for 2024 from operating cash flow in our existing credit facility. We expect to generate $90 million to $110 million of operating cash flow, with $30 million of planned capital expenditures.

我們仍然專注於流動性和資產負債表實力，並期望透過現有信貸安排的營運現金流來滿足 2024 年的流動性需求。我們預計將產生 9,000 萬至 1.1 億美元的營運現金流，其中計畫資本支出為 3,000 萬美元。

This results in $60 million to $80 million of free cash flow for the year, which we intend to use to pay down our credit line. Working capital changes are expected to be a source of cash in 2024 versus a significant use of cash the last two years. We expect non-cash charges to be a combined $90 million or similar to 2023 levels.

這將帶來今年 6,000 萬至 8,000 萬美元的自由現金流，我們打算用它來償還我們的信貸額度。預計營運資本變動將成為 2024 年的現金來源，而過去兩年則大量使用現金。我們預計非現金費用總計將達到 9,000 萬美元，或與 2023 年的水準相似。

We also want to provide some clarity regarding our first quarter 2024 performance expectations. We are expecting net sales to be down approximately 10% versus the prior year's quarter, including three to four points of headwind from year over year backlog changes, we expect first quarter adjusted EBITDA to be just over $30 million.

我們也希望澄清 2024 年第一季的業績預期。我們預計淨銷售額將比去年同期下降約 10%，其中包括同比積壓變化帶來的 3 到 4 個百分點的阻力，我們預計第一季調整後 EBITDA 將略高於 3000 萬美元。

Our outlook for 2024 provides appropriate clearance against the revised bank covenants put in place last quarter. The new bank agreement and related covenants have provided increased flexibility to enable us to restructure the business and navigate the demand environment. In 2024, we expect our debt to EBITDA leverage to peak in Q2 of this year and ended the year below 3.75 times under our covenant levels.

我們對 2024 年的展望為上季實施的修訂後的銀行契約提供了適當的依據。新的銀行協議和相關契約提供了更大的靈活性，使我們能夠重組業務並應對需求環境。到 2024 年，我們預計我們的債務與 EBITDA 槓桿率將在今年第二季度達到峰值，並在年底時低於我們的契約水平的 3.75 倍。

As the industry recovers, we see a significant opportunity for our business to accelerate by building a more durable operating model with greater financial resilience. We are transforming our business to deliver profitability and free cash flows across the highs and lows of the mattress industry cycle. We are at a cycle low right now and expect to generate $60 million to $80 million of free cash flow this year.

隨著產業的復甦，我們看到了透過建立具有更強財務彈性的更持久的營運模式來加速業務發展的重大機會。我們正在轉型我們的業務，以在床墊行業週期的高潮和低谷中提供盈利能力和自由現金流。我們目前正處於週期低點，預計今年將產生 6,000 萬至 8,000 萬美元的自由現金流。

As we continue to benefit from the cost optimization initiatives underway, we expect our gross margin rate to return to 60%-plus and low double digit EBITDA margins as industry unit trends return to more normalized levels.

隨著我們繼續受益於正在進行的成本優化舉措，隨著行業單位趨勢恢復到更正常化的水平，我們預計我們的毛利率將恢復到 60% 以上，以及較低的兩位數 EBITDA 利潤率。

With that, Lisa, please open the line for questions.

那麼，麗莎，請打開提問線。

(Operator Instructions) Bobby Griffin, Raymond James.

（操作員說明）鮑比·格里芬、雷蒙德·詹姆斯。

Good afternoon, everybody. Thanks for taking my questions. (technical difficulty) And all the details given on around the moving parts for 2024. And so I guess first, when we spoke last we were talking about some of the store closures to strengthen the store portfolio. And maybe you've done a few so far.

大家下午好。感謝您回答我的問題。（技術難度）以及 2024 年活動部件的所有細節。所以我想首先，當我們上次談話時，我們正在討論關閉一些商店以加強商店組合。也許到目前為止您已經做了一些。

So can you give us a little detail on what you're seeing on recapture rates, as you're closing some of these stores?

那麼，當您關閉其中一些商店時，您能否向我們詳細介紹您所看到的重新奪回率？

Yes, Bobby, thanks for the question. First is it's early on that. But what we have is a very detailed store-transfer strategy to be able to capture those sales, and expect approximately 45% to 50% of the sales to transfer. We focus on the total DMA and positive profitability for the DMA. And we have a lot of historical experience on store transfer.

是的，鮑比，謝謝你的提問。首先，現在還為時過早。但我們擁有非常詳細的商店轉移策略，能夠捕獲這些銷售額，並預計大約 45% 到 50% 的銷售額將被轉移。我們關注 DMA 總量和 DMA 的正獲利能力。而且我們在店鋪轉讓方面有很多歷史經驗。

And then over the years, as we've been executing our portfolio to try to keep a very current retail strategy and of stores and online, we look at the DMAs. We relocate stores. We understand how to capture that consumer and digitally and pull her through, and develop relationships. And so we're bullish on what we can do here, and therefore expect only one point pressure due to due to our net stores this year.

多年來，當我們一直在執行我們的投資組合以試圖保持商店和線上零售策略時，我們會專注於 DMA。我們搬遷商店。我們了解如何以數位方式吸引消費者並幫助她渡過難關並發展關係。因此，我們看好我們在這裡可以做的事情，因此預計今年我們的淨商店只會帶來一點壓力。

Okay. That's helpful. And I guess selling maybe to step back and talk a little bit on 4Q and some of the changes you've got put into place. I mean, pretty notable change in where the demand was. I think we ended 3Q running down low double digit and in 4Q running down low single digits.

好的。這很有幫助。我想出售可能是為了退後一步，談談第四季以及你們已經實施的一些變化。我的意思是，需求發生了相當顯著的變化。我認為我們第三季的業績下滑了兩位數，第四季的業績下滑了個位數。

So can we talk about the progression and what you saw as we move some of the advertising or different initiatives? Because that is a pretty sizable change against some comparisons that are roughly about the same last year

那麼我們可以談談進度以及您在我們移動一些廣告或不同舉措時看到的情況嗎？因為與去年大致相同的一些比較相比，這是一個相當大的變化

Yes. Thanks, Bobby. You know, we did make better progress in both generating demand and reducing costs than we had expected in the fourth quarter. Regarding demand, it was about strengthening our competitive positioning. We had a low single digit decline for the quarter, pretty consistent performance across the the three months.

是的。謝謝，鮑比。要知道，第四季度我們在創造需求和降低成本方面確實取得了比我們預期更好的進展。關於需求，是為了加強我們的競爭地位。本季我們的跌幅較低，為個位數，這三個月的表現相當穩定。

And we took many actions, integrated actions, in the back half at the end of September and heading into October, which is focused on messaging, media, selling process, and promotions. And the integrated work led to improved brand metrics, and also traffic, and media ROI, and therefore our demand performance.

我們在九月底和十月前採取了許多行動，綜合行動，重點是訊息、媒體、銷售流程和促銷。綜合工作提高了品牌指標、流量和媒體投資報酬率，從而提高了我們的需求績效。

How is the demand trended so far in 2024? There's been a lot of comments out there that the industry unfortunately took a step back in January with some winter weather, as well as February. So just curious if you can tell us how things are trending year to date for you?

2024 年到目前為止，需求趨勢如何？有很多評論稱，不幸的是，由於冬季天氣，該行業在一月份以及二月後退了一步。所以只是好奇您能否告訴我們今年迄今為止您的情況如何？

Sure. This speaks to the highly reactive consumer that I spoke about in my prepared remarks. You're right. It's been widely reported that January demand trends for the mattress industry were very challenging, including the weather impact, but it was also a pullback in spending across the category. And we saw that from the consumer and probably tied to purchasing power.

當然。這反映了我在準備好的發言中談到的高度反應的消費者。你說得對。根據廣泛報導，一月份床墊行業的需求趨勢非常具有挑戰性，包括天氣的影響，但這也是整個類別支出的縮減。我們從消費者那裡看到了這一點，並且可能與購買力有關。

We were also impacted by these same factors in January and had a double digit decline in January. February has returned to a low single digit decline for us, including a low single digit growth over the President's weekend, which I think is probably a little better than what I'm hearing for the industry.

我們一月份也受到了這些相同因素的影響，一月份出現了兩位數的下降。對我們來說，二月已經恢復到低個位數下降，包括總統週末期間的低個位數成長，我認為這可能比我聽到的行業情況要好一些。

We're forecasting Q1 demand to be down mid single digits, with Q1 net sales down 10% year over year. Then in the back half of the year, we expect a low single digit growth as we lap easier compares, particularly against Q3.

我們預測第一季的需求將下降中個位數，第一季的淨銷售額將年減 10%。然後，在今年下半年，我們預計會出現較低的個位數成長，因為我們的比較比較容易，特別是與第三季相比。

Okay. I appreciate that detail. I'll jump back in the queue. And turn it over to others. but thank you and best of luck here.

好的。我很欣賞這個細節。我會跳回到隊列中。並將其轉交給其他人。但謝謝你，祝你好運。

Thank you, Bob.

謝謝你，鮑伯。

(Operator Instructions) Brad Thomas, KeyBanc Capital Markets.

（操作員說明）Brad Thomas，KeyBanc 資本市場。

Hi. Good afternoon. Thanks for taking my question on Shelley, I was wondering if you could just talk a little bit about some of the product and promotional strategies you think might be most effective for you own in this current backdrop. What, if anything, you're planning to do from a product standpoint and how much of the line might be changing after this year?

你好。午安.感謝您提出有關雪萊的問題，我想知道您是否可以談談您認為在當前背景下可能對您最有效的一些產品和促銷策略。從產品的角度來看，您計劃做什麼（如果有的話），以及今年之後產品線可能會有多少變化？

Hi, Brad. I think I'll start with our consumer innovation strategy, which reshaped really what consumers should be expecting out of their bed. We see our smart bed platform continuing to set pace for this category and certainly for the consumer. We continue to have value-added solutions that, not only deliver the highest quality fleet, our platform also has the opportunity with digital innovation to solve many untapped opportunities in the future around sleep and the continuum of care.

嗨，布拉德。我想我將從我們的消費者創新策略開始，該策略真正重塑了消費者對起床的期望。我們看到我們的智慧床平台繼續引領這一類別的步伐，當然也為消費者引領。我們繼續提供增值解決方案，不僅提供最高品質的車隊，我們的平台還有機會透過數位創新來解決未來圍繞睡眠和連續護理的許多未開發的機會。

So we continue to focus on setting pace there. And we'll compete aggressively in this marketplace to win the consumer with delivering the highest quality sleep.

因此，我們繼續專注於在那裡加快步伐。我們將在這個市場上積極競爭，透過提供最高品質的睡眠來贏得消費者。

You asked specifically about some of the messaging and promotion strategy that's resonating in. We still are operating with a scrutinizing consumer in the marketplace, and we worked on a lot of -- took a lot of actions in the third and fourth quarter to be able to refine our messaging to be able to reach this consumer, breakthrough with a strong value equation, and we're liking what we're seeing.

您特別詢問了一些引起共鳴的訊息傳遞和促銷策略。我們仍然在市場上與仔細審查的消費者合作，我們在第三和第四季度採取了很多行動，以便能夠完善我們的訊息傳遞，以便能夠接觸到這個消費者，並透過強大的價值方程式，我們喜歡我們所看到的。

And I think, as we completed here in the month of February and over the President's weekend, we're seeing the advancement of our work from Q4 to effectively reach the consumer. And specifically, this is one of the advantages around our vertical model where we're able to integrate our plans, and look at total variable margin, inclusive of promotional dollars, financing in media investments in and structure our promotional plan accordingly, being able to manage discounts in a way that drives higher mix, which we're seeing, as well as attach and an overall focus on optimizing our variable margin and still delivering media efficiency in a challenged environment.

我認為，正如我們在二月和總統週末期間完成的那樣，我們看到我們的工作從第四季度開始取得了進展，可以有效地接觸消費者。具體來說，這是我們垂直模式的優勢之一，我們能夠整合我們的計劃，並考慮總可變利潤，包括促銷資金、媒體投資融資並相應地構建我們的促銷計劃，能夠以一種推動更高組合的方式管理折扣，我們看到了這一點，並附加並全面關注優化我們的可變利潤，並在充滿挑戰的環境中仍然提供媒體效率。

That's helpful, Shelly. And just to follow up on that. I don't know that we can totally tell, as we look through some of the items you disclosed, because there's some issues with comparability and M&A. But, a, are you ticked down a little bit from where it's been the last several quarters?

這很有幫助，雪莉。只是為了跟進。我不知道我們可以完全判斷，因為我們查看了你披露的一些項目，因為可比性和併購方面存在一些問題。但是，你是否比過去幾季的情況有所下降？

Gross margins up to the comparisons will play into it. And then you mentioned the units going positive. I guess, all of this maybe implies that you've got a bit more promotional fear. Is that accurate? Did you get more promotional, and is that going to be a strategy and push on more in 2024 to drive the business?

比較的毛利率將發揮作用。然後你提到單位轉正。我想，所有這些可能意味著你對促銷有更多的恐懼。準確嗎？您是否獲得了更多促銷活動？這是否會成為一項策略並在 2024 年推動更多活動以推動業務發展？

Yeah. Thanks for asking those additional specific questions. We did in Q4, you can see that in our ARU. And then as you noted, units were positive and offset that. But for us, even though ARU was up, we were a few hundred below where we were forecasting.

是的。感謝您提出這些額外的具體問題。我們在第四季度做到了，你可以在我們的 ARU 中看到這一點。然後正如您所指出的，單位為正並抵消了這一點。但對我們來說，儘管 ARU 上升了，但仍比我們的預測低了幾百。

And we've continued to iterate and really happy with the progression since that time, and right on what we would expect right now in February, and for the President's weekend, where you'd have seen some good movement in ARU and at the same time having heavy units fairly flattish. So it's advancing.

從那時起，我們一直在不斷迭代，並對進展感到非常滿意，這正是我們在二月份以及總統週末所期望的，在那裡你會看到 ARU 的一些良好動作，同時重單位相當平坦的時間。所以它正在進步。

And if you look at, I think, specifically, for the President's weekend, if you look at our discounts, you may look at it by model and say, oh, the discounts are higher. But that was designed to drive mix up. So again, fully loaded variable margin using discounts to drive mix, using financing differently, we look at discounts and financing as a total bucket. We actually have year-over-year reduction in dollars and some of the favorability and in the variable margin.

我想，如果你看看，特別是總統週末，如果你看看我們的折扣，你可能會按型號查看，然後說，哦，折扣更高。但這是為了引起混淆。因此，再次強調，充分利用折扣來驅動組合的可變利潤，以不同的方式使用融資，我們將折扣和融資視為一個整體。事實上，我們的美元和一些優惠以及可變利潤率逐年減少。

That's very helpful, Shelly. Thank you so much, and I'll turn it over to others. Good luck.

這很有幫助，雪莉。非常感謝，我會把它轉給其他人。祝你好運。

Thanks.

謝謝。

Bobby Griffin, Raymond James.

鮑比·格里芬、雷蒙德·詹姆斯。

Hey, guys, thanks for bringing me back in here. Shelly, just to clarify, the positive unit comment in 4Q, is that on a demand basis? So excluding the moving parts with the backlog year over year?

嘿，夥計們，謝謝你帶我回到這裡。雪莉，我想澄清一下，第四季的正面單位評論是基於需求嗎？那麼排除逐年積壓的移動部件嗎？

Yeah, demand basis. Thank you. Thank you for clarifying that.

是的，需求基礎。謝謝。感謝您澄清這一點。

Yeah, okay.

好的。

My comment here about ARU in demand and our current performance here in the quarter is all demand related.

我在這裡對 ARU 需求的評論以及我們本季目前的表現都與需求相關。

Okay. That's helpful. In reference to the data, is the backlog comparison largely just a 1Q issue? Or is it going to impact all the quarters in 2024?

好的。這很有幫助。從數據來看，積壓的比較很大程度只是第一季的問題嗎？還是會影響 2024 年的所有季度？

Hey, Bobby, thanks for asking. We have -- the backlog comparison will largely impact the front half of the year and be weighted toward Q1 for '24.

嘿，鮑比，謝謝你的提問。我們發現，積壓訂單的比較將在很大程度上影響今年上半年，並專注於 24 年第一季。

And then I wanted to circle back -- (multiple speakers)

然後我想繞回來——（多位發言者）

Bobby, (multiple speakers) so on the first half of the year, we're probably looking at about, as Shelly said, a three- to four-point drag on net sales growth year over year with the backlog changes. The back half of the year, it's probably less than a point the way we see it now.

鮑比（多位發言者）因此，在今年上半年，正如雪莉所說，我們可能會看到，由於積壓訂單的變化，淨銷售增長同比受到三到四個百分點的拖累。今年下半年，它可能比我們現在看到的還要少一個點。

Okay. Just pure backlog headwinds. Okay.

好的。只是純粹的積壓逆風。好的。

Yeah, pure backlog headwinds exclusively really focused on the first half of the year.

是的，純粹的積壓逆風確實集中在今年上半年。

Okay. And then the second part is, is that part of the reason the gross margin progression is different than maybe you would have expected with all the expansion in 2H? Or is there some other things going on inside gross margins that are impacting the timing throughout the year?

好的。第二部分是，這是否是毛利率進展與您對 2H 擴張的預期不同的部分原因？或者毛利率內部是否發生了其他一些事情，影響了全年的時間安排？

I think the underlying gross margin shifts will be largely to the timing of some of these cost initiatives that we're putting in place through the work, and the programs that we're putting in for our cost improvement profitability improvement overall.

我認為潛在的毛利率變化將主要取決於我們在工作中實施的一些成本措施的時機，以及我們為整體成本改善和盈利能力改善而實施的計劃。

I'll say that I've been here for several months now. And as the new CFO, one of my top priorities is to build a more durable operating model. And we've left no stone unturned as we look across all elements of our cost structure with gross margin and the initiatives we're putting in place. And those will take hold in the second half of the year and be annualizing and could you see even more benefit in 2025.

我會說我已經在這裡幾個月了。作為新任財務官，我的首要任務之一是建立更持久的營運模式。當我們審視成本結構的所有要素、毛利率和我們正在實施的措施時，我們不遺餘力。這些將在今年下半年紮根並按年計算，您是否會在 2025 年看到更多收益。

Okay. And then I guess, lastly, for me is just you guys are part tightening up on CapEx to drive cash flow and pay down debt, and obviously, is the right strategy. Just curious, what is it in pull it out of CapEx to see it go down to $30 million or some of the historical rates? What are we deferring in, things like that?

好的。最後，我想，對我來說，你們正在部分收緊資本支出，以推動現金流和償還債務，顯然，這是正確的策略。只是好奇，是什麼讓它從資本支出中撤出，看到它下降到 3000 萬美元或一些歷史利率？我們在延後什麼，諸如此類的事情？

Yeah, our CapEx is around $30 million this year. It's about half of what it's been in the last couple of years. In addition to store closures, we're also being more thoughtful about store openings. And we're focusing the rest of that CapEx on some critical tech spend for our key systems.

是的，我們今年的資本支出約為 3000 萬美元。這大約是過去幾年的一半。除了關店之外，我們在開店方面也更加謹慎。我們將剩餘的資本支出集中在我們關鍵系統的一些關鍵技術支出。

I would add. So it's really a slow down; a slow down of of newer expansion, and a slow down in some of our assets infrastructure.

我想補充一點。所以這確實是一個緩慢的過程；新擴張的放緩，以及我們一些資產基礎設施的放緩。

Okay. That's helpful. That's what I was looking for. I appreciate you guys just let me ask some additional questions and best of luck in first quarter.

好的。這很有幫助。這就是我一直在尋找的。我很感謝你們讓我問一些額外的問題，祝第一季好運。

Thank you.

謝謝。

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

目前，沒有其他問題了。因此，我會將電話轉交給管理團隊，以徵求任何補充或結束語。

Thank you for joining us today. We look forward to discussing our first quarter 2024 performance with you in April. Sleep well and dream big.

感謝您今天加入我們。我們期待在 4 月與您討論 2024 年第一季的業績。睡個好覺，夢想遠大。

And again, everyone, that does conclude this conference. Thank you for your participation.

各位，這次會議到此結束。感謝您的參與。