Brand House Collective Inc (TBHC) 2022 Q4 法說會逐字稿

Good morning, everyone, and thank you for participating in today's conference call to discuss Kirkland's financial results for the fourth quarter and fiscal year ended January 28, 2023.

大家早上好，感謝您參加今天的電話會議，討論柯克蘭截至 2023 年 1 月 28 日的第四季度和財政年度的財務業績。

Joining us today are Kirkland's Home CEO; Steve Woody Woodward; EVP and CFO, Mike Madden; and the company's External Director of Investor Relations, Cody Cree.

今天加入我們的是 Kirkland's Home 首席執行官；史蒂夫·伍迪·伍德沃德；執行副總裁兼首席財務官 Mike Madden；以及公司的投資者關係外部總監 Cody Cree。

Following their remarks, we'll open the call for questions. Before we go further, I'd like to turn the call over to Mr. Cree as he reads the company's safe harbor statement with the meaning of the Private Securities Litigation Reform Act of 1995, provides important cautions regarding forward-looking statements. Cody, please go ahead.

在他們發言後，我們將開始提問。在我們繼續之前，我想把電話轉給 Cree 先生，因為他正在閱讀公司的安全港聲明，其含義是 1995 年私人證券訴訟改革法案，提供了關於前瞻性聲明的重要警告。科迪，請繼續。

Thanks, Jamie. Except for historical information discussed during this conference call, the statements made by company management are forward-looking and made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.

謝謝，傑米。除了本次電話會議中討論的歷史信息外，公司管理層的陳述是前瞻性的，是根據 1995 年《私人證券訴訟改革法》的安全港條款作出的。

Forward-looking statements involve known and unknown risks and uncertainties, which may cause Kirkland's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties are more fully described in Kirkland's filings with the Securities and Exchange Commission.

前瞻性陳述涉及已知和未知的風險和不確定性，這可能導致凱易在未來期間的實際結果與預測結果存在重大差異。 Kirkland 向美國證券交易委員會提交的文件中更全面地描述了這些風險和不確定性。

I'd like to remind everyone that this call will be available for replay through April 11, 2023. A webcast replay will also be available via the link provided in today's press release as well as on the company's website at kirklands.com. Now I'd like to turn the call over to Kirkland's Home CEO, Woody Woodward. Woody, over to you.

我想提醒大家，該電話會議將在 2023 年 4 月 11 日之前進行重播。還可以通過今天新聞稿中提供的鏈接以及公司網站 kirklands.com 進行網絡直播重播。現在我想把電話轉給 Kirkland's Home 的首席執行官 Woody Woodward。伍迪，交給你了。

Thank you, Cody, and good morning, everyone. It's a pleasure to be speaking with you all today. And as I announced this morning, I provided the Board of Directors with notice that I will be retiring from my position at the end of May. And as a result, the Board has commenced a CEO transition plan. It's been an honor leading this great organization since 2018. I have respect for our Board and all the great colleagues I've served over these past 5 years.

謝謝科迪，大家早上好。很高興今天能與大家交談。正如我今天早上宣布的那樣，我已向董事會發出通知，我將在 5 月底從我的職位上退休。因此，董事會已啟動 CEO 交接計劃。自 2018 年以來領導這個偉大的組織是我的榮幸。我尊重我們的董事會以及我在過去 5 年中服務過的所有優秀同事。

While I couldn't have predicted all the highs and lows we would face on this journey, I knew our transformation plan would take time and patience. The largest and most successful home furnishings retailers in our industry all took decades to reshape their business, build their reputation and capture market share to become the leaders they are today.

雖然我無法預測我們在這段旅程中會遇到的所有高潮和低谷，但我知道我們的轉型計劃需要時間和耐心。我們行業中最大、最成功的家居用品零售商都花了數十年時間重塑業務、建立聲譽並佔領市場份額，才成為今天的領導者。

So we knew this was not going to be an overnight success. In fact, the last several years have truly been some of the most challenging periods I've ever experienced throughout my career. However, I'm proud of our organization's ability to navigate this highly volatile macro environment, and the resilience of our team makes me proud to serve alongside them.

所以我們知道這不會一夜成名。事實上，過去幾年確實是我整個職業生涯中經歷過的最具挑戰性的時期。然而，我為我們的組織有能力駕馭這個高度動蕩的宏觀環境而感到自豪，我們團隊的韌性讓我為能與他們一起工作而感到自豪。

I firmly believe that this organization has made significant improvements across every facet of the business and is in a better position to capitalize on the opportunities that lie ahead.

我堅信，該組織在業務的各個方面都取得了重大改進，並且能夠更好地利用未來的機遇。

As our Board considers this option for my successor, I will be staying as CEO through the end of May to ensure a smooth transition. Ann Joyce, a member of our Board, will be stepping in as the interim CEO. By way of background, she has served as a senior executive, in many senior executive roles throughout the retail industry over the past 3 decades, including notable brands such as Ralph Lauren, Aeropostale and Chico's.

由於我們的董事會正在考慮我的繼任者的這個選擇，我將在 5 月底之前繼續擔任首席執行官，以確保平穩過渡。董事會成員 Ann Joyce 將擔任臨時 CEO。作為背景，在過去 3 年裡，她曾擔任高級管理人員，在整個零售行業擔任過許多高級管理人員職務，其中包括 Ralph Lauren、Aeropostale 和 Chico's 等知名品牌。

In more recent years, Ann has spent most of her time on board for various public and private companies in addition to running her own consulting practice in which she advises senior business executive and Board member. Ann joined Kirkland's Board as an Independent Director in June 2021 and has an extensive view into the challenges we currently face and more importantly, the opportunities ahead. In addition, we announced the promotion of Amy Sullivan, who currently serves as Senior Vice President and Chief Merchandising and Stores Officer to the role of President and Chief Operating Officer.

近年來，除了經營自己的諮詢業務外，Ann 大部分時間都在多家上市公司和私營公司任職，為高級業務主管和董事會成員提供建議。 Ann 於 2021 年 6 月以獨立董事的身份加入柯克蘭董事會，對我們當前面臨的挑戰以及更重要的是未來的機遇有著廣泛的看法。此外，我們還宣布將現任高級副總裁兼首席營銷和門店官的 Amy Sullivan 提升為總裁兼首席運營官。

Amy has been an invaluable member of our leadership team over the past decade and has been instrumental in evaluating the brand -- in elevating the brand to a much improved design and quality that we have today. Amy has more than 20 years of experience in senior merchandising roles across the retail landscape, having worked for Express, Lands' End, Kohl's and JCPenney.

在過去的十年裡，艾米一直是我們領導團隊的寶貴成員，並且在評估品牌方面發揮了重要作用——將品牌提升到我們今天所擁有的大大改進的設計和質量。艾米在零售領域擔任高級營銷職務方面擁有超過 20 年的經驗，曾在 Express、Lands' End、Kohl's 和 JCPenney 工作過。

With Ann and Amy in these roles, along with the rest of our skilled leadership team, I firmly believe that I will be leaving the company in great hands, and I look forward to rooting for their success from the sidelines.

有了 Ann 和 Amy 擔任這些角色，以及我們技術嫻熟的領導團隊的其他成員，我堅信我將在偉大的領導下離開公司，我期待在場外為他們的成功加油。

With that, let's transition over to our performance, as we disclosed in our holiday sales release earlier this year. We stated the fourth quarter -- we started the fourth quarter with promising sales trends as the month of November and our Black Friday event was relatively successful.

有了這個，讓我們過渡到我們的表現，正如我們在今年早些時候的假期銷售發布中所披露的那樣。我們說了第四季度——我們以 11 月份的良好銷售趨勢開始了第四季度，我們的黑色星期五活動相對成功。

However, soon thereafter, we began to see traffic decline rapidly, both in-store and online, along with experiencing the effects of significant inventory reductions on our merchandise mix, both of which ultimately drove our overall quarterly sales lower on a year-over-year basis.

然而，此後不久，我們開始看到店內和網上的客流量迅速下降，同時經歷了庫存大幅減少對我們商品組合的影響，這兩者最終導致我們的整體季度銷售額同比下降年的基礎。

Although it's disappointing, importantly, we were able to generate over $40 million in operating cash flow, which allowed us to repay $45 million in debt. Even in a volatile customer market with declining customer traffic and a less-than-ideal merchandise (inaudible), we were able to generate meaningful cash flow and strengthen our balance sheet.

儘管令人失望，但重要的是，我們能夠產生超過 4000 萬美元的運營現金流，這使我們能夠償還 4500 萬美元的債務。即使在客戶流量下降和商品不太理想（聽不清）的動盪客戶市場中，我們也能夠產生有意義的現金流並加強我們的資產負債表。

But stepping back for a moment, I'd like to provide some perspective on the power of our brand and the potential value that our omnichannel platform can provide shareholders.

但退後一步，我想就我們品牌的力量以及我們的全渠道平台可以為股東提供的潛在價值提供一些觀點。

If we look at our performance from fiscal 2014 to fiscal 2018, our average annual revenue during that 5-year period was almost $600 million, and our EBITDA margin was almost 8%. We were able to accomplish that with an operating structure that was not as well positioned to support omnichannel growth as it is today. There was no direct sourcing program, and we had declining merchandise relevancy with outdated designs and quality issues.

如果我們看一下 2014 財年到 2018 財年的業績，我們在這 5 年期間的平均年收入接近 6 億美元，我們的 EBITDA 利潤率接近 8%。我們能夠通過一個不像今天那樣能夠很好地支持全渠道增長的運營結構來實現這一目標。沒有直接採購計劃，我們的商品相關性下降，設計過時和質量問題。

Since then, we've made significant changes to our organization, including digital transformation efforts to create a true omnichannel platform, removed significant cost from our operating structure, revitalized our brand image with updated logos and refreshed stores and refined our distribution footprint to provide better coverage across our store and customer footprint.

從那時起，我們對我們的組織進行了重大變革，包括數字化轉型工作以創建一個真正的全渠道平台，從我們的運營結構中削減了大量成本，通過更新徽標和更新商店重振我們的品牌形象，並完善我們的分銷足跡以提供更好的服務覆蓋我們的商店和客戶足跡。

It wasn't that long ago during a heightened customer spending environment that we were able to capitalize on these transformative changes and report impressive financial results, although unprecedented macro challenges soon followed and significantly affected customer sentiment.

就在不久前，在客戶支出增加的環境中，我們能夠利用這些變革性變化並報告令人印象深刻的財務業績，儘管前所未有的宏觀挑戰很快隨之而來並顯著影響了客戶情緒。

I firmly believe we have the ability to continue positioning our organization for long-term success. With better liquidity and an improved merchandise strategy in place, we believe this sets us on a path to stabilize our business in fiscal 2023 and reinvigorate sustainable growth from there.

我堅信我們有能力繼續定位我們的組織以取得長期成功。憑藉更好的流動性和改進的商品戰略，我們相信這將使我們走上在 2023 財年穩定我們的業務並從那裡重振可持續增長的道路。

So how do we get to this point? While the transformative changes that we made over the past few years have been beneficial in elevating the quality, design and sourcing of our merchandise, we also recognize that many of our loyal customers who are dedicated shoppers to our value decor and holiday assortments have felt somewhat neglected through this transition period.

那麼我們如何做到這一點呢？雖然我們在過去幾年中所做的變革有利於提升我們商品的質量、設計和採購，但我們也認識到，我們的許多忠實顧客都對我們的價值裝飾和節日分類有一定的感受在這個過渡時期被忽視了。

This customer has been incredibly important for Kirkland's Home throughout our history, and we believe there is an opportunity to reinvigorate this portion of our customer base.

縱觀我們的歷史，這位客戶對 Kirkland's Home 來說非常重要，我們相信有機會重振這部分客戶群。

While we're still planning to provide larger ticket items in categories such as furniture and outdoor, we're going to be working on rebalancing our merchandise assortment with a focus on opening price points starting in the $20 range and ensuring that our inventory availability appropriately supports customer demand.

雖然我們仍計劃在家具和戶外等類別中提供更大價的商品，但我們將努力重新平衡我們的商品分類，重點關注從 20 美元起的開盤價點，並確保我們的庫存可用性適當支持客戶需求。

In fact, we've already begun shifting store layout to more effectively highlight these opening price point items while still showing how they can be a wonderful [accent] to larger ticket items.

事實上，我們已經開始改變商店佈局，以更有效地突出這些開盤價商品，同時仍然展示它們如何成為大價商品的絕妙 [口音]。

As part of these efforts, we're continuing to push a strong selling culture among our store-level employees to drive improved conversion with this updated merchandise mix.

作為這些努力的一部分，我們將繼續在我們的商店級員工中推動強大的銷售文化，以通過這種更新的商品組合來推動改進的轉換。

We're also going to be much more calculated with our promotional strategy to ensure we're supporting these value-seeking customers, which includes leveraging improvements in our initial markup to drive more demand with a higher discount rate.

我們還將對促銷策略進行更多計算，以確保我們支持這些尋求價值的客戶，其中包括利用我們初始加價的改進以更高的折扣率推動更多需求。

Through this process, we're evaluating the effectiveness of our marketing and going to be a laser focus on improving the ROI on advertising and marketing spend to ensure that our efforts are ultimately resulting in sales dollars.

通過這個過程，我們正在評估我們營銷的有效性，並將專注於提高廣告和營銷支出的投資回報率，以確保我們的努力最終帶來銷售收入。

We've developed a very powerful tool with our customer data platform that provides us with ample insight into the customer behavior and pattern, which we will look forward to leveraging in the coming fiscal year to drive these merchandise and promotional strategies in the right direction.

我們已經利用我們的客戶數據平台開發了一個非常強大的工具，使我們能夠深入了解客戶的行為和模式，我們期待在下一個財政年度利用它來推動這些商品和促銷策略朝著正確的方向發展。

In addition to our revised merchandise strategy, we're expecting to see some relief from the supply chain show up in our margin structure in fiscal 2023.

除了我們修改後的商品戰略外，我們預計在 2023 財年我們的利潤率結構中會出現供應鏈的一些緩解。

We are seeing pricing on shipping containers and rates come back to more normalized levels and expecting to see material margin improvements starting in the first quarter of this fiscal year. While this is welcome news, we remain vigilant on our efforts to tightly manage our operating costs across the organization.

我們看到海運集裝箱的定價和費率回到更正常的水平，並預計從本財年第一季度開始，利潤率將出現實質性改善。儘管這是個好消息，但我們仍對嚴格管理整個組織的運營成本的努力保持警惕。

We've also amended our existing credit agreement to further extend our credit availability during peak season and strengthen our liquidity position. I'll let Mike dive into the details of the new agreement, but it was important for us to secure the added availability and flexibility at what is the lowest cost of capital available to us. The facility was set to mature in 2024, and this amendment extends the term out to 2028.

我們還修改了現有的信貸協議，以進一步擴大我們在旺季的信貸可用性並加強我們的流動性狀況。我會讓 Mike 深入了解新協議的細節，但重要的是我們要確保以我們可用的最低資本成本獲得更多的可用性和靈活性。該設施原定於 2024 年到期，該修正案將期限延長至 2028 年。

Overall, I'm very proud of what this organization has been able to accomplish in such a difficult macro environment as this past year, including improving the quality and design of our merchandise, updating the customer -- the company's branding, enhancing the omnichannel experience and optimizing our operating structure with a focus on delivering long-term profitability.

總的來說，我為這個組織在去年如此困難的宏觀環境中取得的成就感到非常自豪，包括提高我們商品的質量和設計，更新客戶——公司品牌，增強全渠道體驗優化我們的運營結構，專注於提供長期盈利能力。

We're well positioned to provide our customers with affordable, stylish alternatives in refreshing their homes. I do believe that we are laying a strong foundation to fully unlock the potential of our platform over time.

我們有能力為我們的客戶提供價格實惠、時尚的替代品，讓他們的家煥然一新。我確實相信，隨著時間的推移，我們正在為充分釋放我們平台的潛力奠定堅實的基礎。

With that, now I'll turn the call over to Mike, who will provide detailed commentary on our performance in the fourth quarter and fiscal year, along with our outlook. Once again, I'd like to thank our stakeholders for their support over the last several years as we embarked on this journey. Mike, the floor is yours.

有了這個，現在我將把電話轉給邁克，他將對我們在第四季度和財政年度的業績以及我們的前景進行詳細評論。我要再次感謝我們的利益相關者在過去幾年中為我們踏上這段旅程提供的支持。邁克，地板是你的。

Thank you, Woody, and good morning, everybody. For the fourth quarter, net sales were $162.5 million compared to $176.2 million in the year ago quarter, which includes a 4% decline in store count and a comparable store sales decline of 6.1%.

謝謝你，Woody，大家早上好。第四季度淨銷售額為 1.625 億美元，去年同期為 1.762 億美元，其中門店數量下降 4%，可比門店銷售額下降 6.1%。

The comparable store sales result was largely driven by a year-over-year traffic decline, partially offset by an increase in the average ticket. E-commerce was 25% of total sales in the quarter, which was similar to the prior year.

可比店面銷售業績主要受客流量同比下降的推動，部分被平均票價的增長所抵消。電子商務佔本季度總銷售額的 25%，與去年持平。

Breaking down sales within the quarter, comps were flat in November, followed by a decrease of 11% in December and a decrease of 8% in January. Gross profit margin declined 850 basis points to 24.8% of sales compared to 33.3% in the prior year quarter.

按季度細分，11 月份的銷售額持平，12 月份下降 11%，1 月份下降 8%。毛利率下降 850 個基點，佔銷售額的 24.8%，而去年同期為 33.3%。

There are 5 components to this year-over-year change as follows: First, merchandise margin declined 420 basis points to 49.9% versus 54.1% in the prior year quarter. Increased discounting associated with our efforts to reduce inventory levels and sell through the holiday assortment, along with higher inbound freight rates, led to this decrease.

這一同比變化有 5 個組成部分，如下所示：首先，商品利潤率下降 420 個基點至 49.9%，而去年同期為 54.1%。與我們降低庫存水平和通過假日分類銷售的努力相關的折扣增加，以及更高的入境運費，導致了這一下降。

As we previously discussed, inbound freight rates spiked in late '21 and early '22 and much of the product that sold through in Q4 carried the impact of higher freight rates and cost of goods.

正如我們之前討論的那樣，入港運費在 21 世紀末和 22 年初飆升，第四季度銷售的大部分產品都受到運費和貨物成本上漲的影響。

Second, central distribution costs increased 170 basis points to 6.3% of sales from 4.6% in the prior year quarter. Operational inefficiencies in our distribution centers resulting from elevated inventory levels and uneven product flows led to the increase.

其次，中央分銷成本佔銷售額的比例從去年同期的 4.6% 上升 170 個基點至 6.3%。由於庫存水平升高和產品流動不均衡導致我們的配送中心運營效率低下，導致了這一增長。

These costs spiked in the first and second quarters and were capitalized as the underlying inventory was held prior to sale. Most of the inventory that sold through during the fourth quarter was burdened by these costs.

這些成本在第一季度和第二季度飆升，並且由於基礎庫存在銷售前持有而被資本化。第四季度售罄的大部分存貨都受到了這些成本的負擔。

Third, store occupancy costs increased 140 basis points to 9% of sales from 7.6% in the prior year quarter largely due to deleverage from a lower sales base.

第三，商店入住成本從去年同期的 7.6% 增加 140 個基點至銷售額的 9%，這主要是由於較低的銷售基數導致的去槓桿化。

Fourth, outbound freight costs, including both store and e-commerce shipping expenses, increased to 150 basis points to 8.3% of sales from 6.8% in the prior year quarter.

第四，包括商店和電子商務運費在內的出境運費從去年同期的 6.8% 增加到 150 個基點，佔銷售額的 8.3%。

Sales deleverage, coupled with additional routes deployed to move more product to stores due to elevated inventory levels, led to the increase as a percentage of sales. E-commerce shipping costs were up slightly versus the prior year, reflecting the launch of our in-home delivery service.

銷售去槓桿化，加上由於庫存水平升高而部署更多路線以將更多產品運送到商店，導致銷售額百分比增加。電子商務運輸成本與上一年相比略有上升，反映了我們推出的送貨上門服務。

And lastly, the depreciation included in cost of sales decreased 30 basis points to 1.5% of sales from 1.8% in the prior year quarter. Total operating expenses were $43.5 million or 26.8% of sales compared to $44.6 million or 25.3% of sales in the prior year quarter, an increase of 150 basis points. We recorded an impairment charge of $1.6 million during the current year quarter primarily related to underperforming stores.

最後，包含在銷售成本中的折舊從去年同期的 1.8% 下降 30 個基點至銷售額的 1.5%。總運營費用為 4350 萬美元，佔銷售額的 26.8%，而去年同期為 4460 萬美元，佔銷售額的 25.3%，增加了 150 個基點。我們在本年度季度記錄了 160 萬美元的減值費用，主要與表現不佳的商店有關。

Excluding this charge, operating expenses deleveraged by only 40 basis points due to tight management of expenses at the store and corporate levels. Adjusted EBITDA, including impairment -- excluding impairment, stock compensation and other minor expenses was $2.6 million compared to $20.3 million in the prior year quarter.

不包括這項費用，由於商店和公司層面的費用管理嚴格，運營費用僅減少了 40 個基點。調整後的 EBITDA，包括減值——不包括減值、股票補償和其他小費用為 260 萬美元，而去年同期為 2030 萬美元。

Our normalized tax rate for the fourth quarter was 18.9% compared to 25.9% in the prior year quarter. Adjusted loss per share, which excludes noncash impairment and other minor adjustments and includes a normalized tax rate, was $0.09 compared to adjusted earnings per share of $0.84 in the prior year quarter. GAAP loss per share, including these items, was $0.30 compared to earnings per share of $0.91 in the prior year quarter.

我們第四季度的標準化稅率為 18.9%，而去年同期為 25.9%。調整後每股虧損為 0.09 美元，不包括非現金減值和其他微小調整，包括正常稅率，而去年同期調整後每股收益為 0.84 美元。包括這些項目在內的 GAAP 每股虧損為 0.30 美元，而去年同期每股收益為 0.91 美元。

Today, we also announced an extension of our existing credit agreement with Bank of America. The amended asset-based facility increases the size of line of credit to $90 million from $75 million, which provides us with incremental line availability and flexibility during our peak season months. The credit agreement was originally scheduled to mature in late 2024. We are pleased to already have this extension behind us and signed up through March 2028.

今天，我們還宣布延長與美國銀行的現有信貸協議。修改後的基於資產的貸款將信貸額度從 7500 萬美元增加到 9000 萬美元，這為我們在旺季月份提供了更多的線路可用性和靈活性。信貸協議原定於 2024 年底到期。我們很高興已經完成了這一延期，並簽署至 2028 年 3 月。

Moving to our outlook for 2023. We are not providing specific guidance for the year given the lack of visibility around the macroeconomic environment and its impact on customer traffic and conversion trends. However, we do want to provide some color around our expectations for certain key areas of the business.

轉向我們對 2023 年的展望。鑑於宏觀經濟環境及其對客戶流量和轉化趨勢的影響缺乏可見性，我們沒有提供今年的具體指導。但是，我們確實希望圍繞我們對業務某些關鍵領域的期望提供一些顏色。

In the early part of fiscal 2023, sales trends have remained challenging, but we are encouraged by the merchandise margin recovery we have seen thus far. Quarter-to-date, comp sales trends are down in the high single-digit range as traffic trends, both in-store and online, continue to be difficult.

在 2023 財年初期，銷售趨勢仍然充滿挑戰，但我們對迄今為止所看到的商品利潤率回升感到鼓舞。本季度至今，由於店內和網上的客流量趨勢仍然困難重重，同類產品的銷售趨勢處於高個位數範圍內。

Merchandise margins are providing an offset, running higher than the prior year in the 150 basis point range. Merchandise margin is benefiting from lower inbound freight costs as container rates return to pre-pandemic levels and a decrease in product costs through vendor negotiations.

商品利潤率提供了抵消，高於上一年的 150 個基點範圍。隨著集裝箱運費恢復到大流行前的水平，以及通過供應商談判降低產品成本，商品利潤率受益於較低的入境運費。

Supply chain costs inside our distribution facilities are reflecting lower inventory levels and increased labor efficiency. We've made moves to simplify our supply chain infrastructure by recently closing our Las Vegas e-commerce distribution hub and reducing our reliance on off-site storage. Inventories are under control and flowing according to plan, and we continue to be vigilant about operating expense control.

我們配送設施內的供應鏈成本反映了較低的庫存水平和提高的勞動效率。我們採取措施簡化我們的供應鏈基礎設施，最近關閉了我們在拉斯維加斯的電子商務配送中心並減少了對場外存儲的依賴。庫存受控並按計劃流動，我們繼續對運營費用控制保持警惕。

With these positive factors in place, our efforts are focused on establishing sales momentum as the year progresses through merchandise assortment adjustments and value-added promotional activities. As we think ahead for the full year and beyond, our priority is returning the business to profitability.

有了這些積極因素，我們的工作重點是通過商品分類調整和增值促銷活動來建立銷售勢頭。在我們展望全年及以後的未來時，我們的首要任務是讓業務恢復盈利。

Historically speaking, while volatility has always played a part in our results, we've been able to maintain EBITDA margins in the mid- to high single-digit range over time. Earlier, Woody cited the period 2014 to 2018, where we achieved EBITDA margins in the 7% to 8% range.

從歷史上看，雖然波動性一直在我們的業績中發揮作用，但隨著時間的推移，我們一直能夠將 EBITDA 利潤率維持在中高個位數範圍內。早些時候，Woody 引用了 2014 年至 2018 年期間，我們實現了 7% 至 8% 的 EBITDA 利潤率。

We've made significant improvements in our operations since then, including within our omnichannel capabilities in our supply chain infrastructure. We've also tightened up our store base and improved our leasing terms in many of our locations.

從那時起，我們在運營方面取得了重大改進，包括我們在供應鏈基礎設施中的全渠道能力。我們還收緊了我們的商店基礎，並改善了我們許多地點的租賃條款。

We remain in competitive sought-after real estate locations with steady customer traffic. We've done an effective job in reducing our operating expenses and continue to manage each expense line item prudently.

我們保持在具有穩定客戶流量的具有競爭力的搶手房地產位置。我們在減少運營費用方面做得很有效，並繼續審慎地管理每個費用項目。

As in the past, top line momentum can generate a sizable flow-through effect and yield substantial earnings growth. We believe that with some of the shifts in emphasis in our merchandise assortment, we can garner more enthusiasm from our core customer segment while maintaining interest from those we've attracted over the last few years.

與過去一樣，頂線勢頭可以產生相當大的流通效應並產生可觀的收益增長。我們相信，隨著我們商品分類重點的一些轉變，我們可以從我們的核心客戶群中獲得更多的熱情，同時保持我們在過去幾年吸引的那些人的興趣。

We are prioritizing more depth and seasonal buys, key items across our home decor categories and an emphasis on more accessible price points in an environment where home consumers are stretched, all while we continue to feature the improvements in style and quality that we've gained over the last few years.

我們正在優先考慮更多的深度和季節性購買，我們家居裝飾類別中的關鍵項目，並強調在家庭消費者緊張的環境中更容易獲得的價格點，與此同時，我們繼續展示我們已經獲得的風格和質量的改進在過去幾年間。

Many of the macro issues affecting the supply chain and input costs have abated. And with firmer control over our inventory levels and our expenses, any improvement in top line trajectory will have an outsized effect on our earnings power.

許多影響供應鍊和投入成本的宏觀問題已經減輕。隨著對我們的庫存水平和支出的更嚴格控制，收入軌蹟的任何改善都將對我們的盈利能力產生巨大影響。

Finally, as to capital allocation, our first priority is to reduce borrowings and reestablish a level of liquidity that allows us to operate the business with more flexibility. Once that has been achieved, we'll focus on growth and ROI opportunities to push the business forward.

最後，在資本配置方面，我們的首要任務是減少借款並重新建立流動性水平，使我們能夠更靈活地經營業務。一旦實現，我們將專注於增長和 ROI 機會，以推動業務向前發展。

Share repurchases and dividends have been valuable components of our capital allocation historically, and we expect to use them again in the future once our near-term goals have been achieved.

從歷史上看，股票回購和股息一直是我們資本配置的重要組成部分，我們希望在實現近期目標後再次使用它們。

With that, I'll turn the call back over to the operator for Q&A.

有了這個，我會把電話轉回給接線員進行問答。

(Operator Instructions) Our first question today comes from Jeremy Hamblin from Craig-Hallum Capital Group.

（操作員說明）我們今天的第一個問題來自 Craig-Hallum Capital Group 的 Jeremy Hamblin。

So I wanted to start with the commentary around adjusting the merchandise assortment. And it sounds like what you've suggested is maybe you were a little too aggressive in some of the changes in merchandise assortment over the last couple of years that maybe your value customer felt somewhat neglected.

所以我想從調整商品分類的評論開始。聽起來你的建議是，在過去的幾年裡，你在商品分類的某些變化中可能有點過於激進，以至於你的價值客戶可能覺得有些被忽視了。

In terms of that rebalancing of the assortment that you mentioned, how long do you expect that to take? What do you think that, that will do in terms of impacting your overall average ticket?

就您提到的品種重新平衡而言，您預計需要多長時間？你認為這會影響你的整體平均票價嗎？

How do we think about that in terms of comps getting back from down high single digits to flat or positive? How is that going to play out in terms of the mix of ticket versus transaction growth?

我們如何看待從高個位數下降到持平或正值的補償？就門票與交易增長的組合而言，這將如何發揮作用？

Well, good question, Jeremy. That's good. And we had a good insight into this year, what's coming and it might be a challenging year. And we also realized that maybe we pushed our furniture assortment too aggressively.

嗯，問得好，傑里米。那挺好的。我們對今年、即將發生的事情以及這可能是充滿挑戰的一年有了很好的洞察力。我們還意識到，也許我們過於激進地推動了我們的家具分類。

And so while we're not backing off of the idea of being a complete home furnishings retailer and having the total package, we have let the customer guide us a little bit more fluidly.

因此，雖然我們沒有放棄成為完整的家居用品零售商並擁有完整包裝的想法，但我們讓客戶更流暢地指導我們。

So one, we started making these decisions that we wanted to have more opportunity at the opening price point is for 2 reasons: one, because that's what our customer is asking for; and #2 was, settling into the fact that there might be recessionary pressures or whatever the macro environment was.

因此，第一，我們開始做出這些決定，我們希望在開盤價有更多機會，原因有二：一，因為這是我們客戶的要求；而#2 是，接受可能存在衰退壓力或任何宏觀環境的事實。

So starting in the fourth quarter of last year, we have purchased products in the $20 range and under to be about 40% of our assortment. Now that's SKU numbers because remember that some of these are huge power SKUs and where we might have ordered 5,000 before we've ordered 10,000. These are proven bestsellers.

因此，從去年第四季度開始，我們購買了 20 美元及以下的產品，約占我們產品種類的 40%。現在這是 SKU 編號，因為請記住，其中一些是強大的 SKU，我們可能在訂購 10,000 之前訂購了 5,000。這些都是久經考驗的暢銷書。

And not only did we buy it that way, but we've also adjusted our visual presentation in the stores to show that and make it easy for the customers that are just coming to spend $20 to $50 that these are the choices that they have.

我們不僅以這種方式購買，而且還調整了我們在商店中的視覺展示，以表明這一點，並讓剛來花 20 到 50 美元的顧客很容易知道這些是他們的選擇。

And so I think it's very clear. It does build up. We've gotten some traction in the first quarter, and we're enjoying that benefit, and it really comes out throughout the entire year and will be fully set and have that equation with the 40% of our purchases in the $20 and under set for the third and fourth quarter.

所以我認為這很清楚。它確實建立起來了。我們在第一季度獲得了一些牽引力，我們正在享受這種好處，而且它確實在整個一年中都出現了，並且將完全確定並與我們購買的 40% 的 20 美元及以下的產品相提並論第三和第四季度。

So we're really excited about it. And like I said, we're not reducing our impetus. We're just letting the customer guide us now that we've got a fully laid out assortment in strategy. And we've done a really good job of bringing in these power items and key items for the balance of the year.

所以我們真的很興奮。就像我說的，我們並沒有減少我們的動力。我們只是讓客戶指導我們，因為我們已經制定了全面的戰略組合。我們在為今年餘下時間引進這些電力項目和關鍵項目方面做得非常好。

Jeremy, just to add on to that, you're asking about ticket. And one thing I would say our team has been working on this. Our buys as they start flowing in toward the back half are going to really reflect what we talked about year-to-date.

傑里米，補充一點，你問的是票的問題。我要說的一件事是我們的團隊一直在努力解決這個問題。我們的購買開始流入後半部分，這將真正反映我們今年迄今所談論的內容。

But as it affects ticket, I think the way we're looking at this is, first of all, we're still going to have a healthy assortment of higher ticket furniture in the store. But with these other items surrounding it, it's going to help us drive items per transaction better and couple that with what we've seen in the ticket so far with the higher ticket items driving that historically.

但由於它會影響門票，我認為我們看待這個問題的方式是，首先，我們仍然會在商店裡提供一系列健康的高價家具。但是，有了這些圍繞它的其他項目，它將幫助我們更好地推動每筆交易的項目，並將其與我們迄今為止在票證中看到的內容相結合，而高票項目在歷史上推動了這一點。

Well, now I think we have a better chance to drive IPT and conversion in the stores with this, and that's kind of how we're looking at the ticket mix here, knowing that traffic may still be difficult in the near term.

好吧，現在我認為我們有更好的機會通過它來推動商店中的 IPT 和轉化，這就是我們在這裡查看門票組合的方式，因為我們知道短期內交通可能仍然很困難。

Got it. That's helpful. And then in terms of the inventory overall, so you had some nice recapture from a working capital perspective on your inventories this year, I think, about plus $30 million.

知道了。這很有幫助。然後就整體庫存而言，我認為從營運資金的角度來看，今年你對庫存進行了一些不錯的收回，大約增加了 3000 萬美元。

As you go through this, kind of swinging back on the product assortment, how should we be thinking about -- like from a cash flow perspective, you did end the year with inventories that were at least $5 million higher than what you had expected in January when you updated.

當你經歷這個，有點回到產品分類時，我們應該如何思考——比如從現金流的角度來看，你年底的庫存確實比你預期的高出至少 500 萬美元一月份更新的時候。

How do we think about the level of inventories? And from a working capital usage perspective, is that something that -- obviously, if you see a real acceleration of sales, then that won't have as much of an impact, but should we be thinking about inventories is something that's going to be a cash usage this year? Or something that could also contribute to your cash flow?

我們如何看待庫存水平？從營運資金使用的角度來看，很明顯，如果你看到銷售真正加速，那麼這不會產生太大的影響，但我們應該考慮庫存嗎？今年的現金使用情況？或者也可以為您的現金流做出貢獻的東西？

Yes. The way -- first of all, to touch on the ending inventory number in '22, it was a little higher, I think, largely due to sales being a little underperforming in December and January. And the other thing I'll mention is transit times have gotten tighter. So our receipts were showing up a little bit earlier than they had been in previous quarters.

是的。方式 - 首先，談到 22 年的期末庫存數量，我認為它略高一些，主要是由於 12 月和 1 月的銷售表現不佳。我要提到的另一件事是運輸時間變得更緊了。因此，我們的收據出現時間比前幾個季度要早一些。

So that timing effect had a little bit of an impact there as well. But as I look into '23, I think you should probably think about it as neutral, I think, and maybe a slight cash generator, just given where we are from a store count basis.

因此，時間效應也在那裡產生了一點影響。但當我研究 23 年時，我認為你應該將其視為中性的，我認為，也許是一個輕微的現金產生者，只是考慮到我們從商店數量的角度來看。

As we end the year, I think the way to think about it is we'll probably end the year right around the way we started it with a little bit of a -- obviously, a peak in the third quarter as we prep for the high selling season and then that coming back down to at or a little bit below where we started is the way to think about it. But it's a traditional type of ramp up and ramp down that we didn't see in '22, we expect to see that in '23.

當我們年底時，我認為考慮它的方式是我們可能會在我們開始它的時候結束這一年 - 顯然，在我們為第三季度做準備時達到頂峰銷售旺季然後回落到或略低於我們開始的水平是思考它的方式。但這是我們在 22 年沒有看到的傳統類型的上升和下降，我們希望在 23 年看到。

Got it. And then last one for me before I hop out of the queue. In terms of the store portfolio, so you closed the 10 locations in Q4, I think, 16-or-so for the year. As you take a look at where the store portfolio is today, is there any thought that maybe -- I'm sure that some of those stores are losing money on a four-wall basis. Is there a thought that maybe you might need to trim more stores on a go-forward basis? Or how should we be thinking about that as we look at '23?

知道了。然後在我跳出隊列之前給我最後一個。就商店組合而言，我認為您在第四季度關閉了 10 家門店，全年約 16 家。當你看看今天商店組合的位置時，是否有任何想法 - 我敢肯定，其中一些商店在四壁的基礎上正在虧損。有沒有想過你可能需要在未來的基礎上削減更多的商店？或者我們應該如何看待'23？

Yes. Right now, we're looking at that as kind of a maintain strategy. I mean I think you may see a few stores drop off kind of similar to what you saw in '22. But we've done a lot of work over the last few years to get our rents in line. And I think largely that's accomplished. We can still track down a few of those and get rent reductions.

是的。現在，我們將其視為一種維護策略。我的意思是，我認為您可能會看到一些商店的流失情況與您在 22 年看到的情況類似。但是在過去的幾年裡，我們做了很多工作來控制我們的租金。我認為這在很大程度上已經完成。我們仍然可以找到其中的一些並獲得減租。

But I think it's maintained thought process. And we've done some recent analysis on our store base and looking at how well traffic those centers are using some of the mobile phone data that's out there.

但我認為它保持了思維過程。我們最近對我們的商店基礎進行了一些分析，並研究了這些中心的流量如何使用那裡的一些手機數據。

And what it tells us is, and we're -- by and large, we're in really good centers across the board. So I think with these changes that we're expecting to see with our merchandise and hopefully some sales momentum as the year progresses, I think we want to hold on to our store base.

它告訴我們的是，我們——總的來說，我們全面處於非常好的中心。因此，我認為隨著我們期待在我們的商品中看到這些變化，並希望隨著時間的推移出現一些銷售勢頭，我認為我們希望保持我們的商店基礎。

Now to your point, we're constantly analyzing areas of the country, areas of the store base that we think we can improve and maybe reduce our exposure. But largely, I think we want to see the store base benefit from what's coming.

現在就您的觀點而言，我們一直在分析該國的地區，我們認為我們可以改善並可能減少曝光率的商店基地地區。但在很大程度上，我認為我們希望看到商店基礎從即將發生的事情中受益。

Our next question comes from Anthony Lebiedzinski from Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

Woody, best of luck on your pending retirement. Certainly a pleasure to work with you last few years.

伍迪，祝你退休前好運。過去幾年與您合作當然很愉快。

Thank you, Anthony.

謝謝你，安東尼。

Sure. So first, as far as just going back to the fourth quarter, just curious as far as same-store sales. Were there any regional differences that you can speak of? And as far as product categories, can you maybe just highlight what perhaps worked and what -- where were the biggest laggards in terms of product categories?

當然。所以首先，就回到第四季度而言，只是對同店銷售額感到好奇。您能說說地區差異嗎？就產品類別而言，您能否只強調哪些可能有效以及哪些產品類別方面最大的落後者在哪裡？

Yes, Anthony, in the fourth quarter, I would say from a region standpoint, things were pretty even across the board. There were really no geographic areas that were all that different than others.

是的，安東尼，在第四節，從地區的角度來看，我想說的是，一切都非常均勻。確實沒有與其他地理區域完全不同的地理區域。

From a merchandise standpoint, I think the big callout about the fourth quarter, I think, was -- we looked good in November. We did really well with our seasonal assortment. It performed very well in December or in November and then through Black Friday. And I think what we saw in December was the effect of a lot of cutbacks that we had to make earlier in the year in our assortment.

從商品的角度來看，我認為關於第四季度的重要宣傳是——我們在 11 月看起來不錯。我們的季節性分類做得很好。它在 12 月或 11 月以及黑色星期五期間表現非常出色。而且我認為我們在 12 月看到的是今年早些時候我們不得不在我們的品種中進行大量削減的影響。

So we kind of found ourselves in a position where the mix was a little off, just given all the cancellations and effects of really having to run that inventory down last year. So we felt like our mix got a little off, and we saw that in December.

因此，考慮到所有取消和去年真正不得不減少庫存的影響，我們發現自己處於一個有點不合時宜的位置。所以我們覺得我們的組合有點不對勁，我們在 12 月看到了這一點。

So what we're doing this year to recover to that is really focusing on the seasonal buy, making sure it's deep enough in the key items that we now sell, instituting a lot of these lower price point items that Woody mentioned across the assortment and taking advantage of that time frame between Black Friday and Christmas, where we felt like we just didn't have the ammunition that we normally have.

因此，我們今年為恢復這一狀況所做的工作實際上是專注於季節性購買，確保它在我們現在銷售的關鍵商品中有足夠的深度，建立許多 Woody 在整個分類中提到的低價商品和利用黑色星期五和聖誕節之間的時間框架，我們覺得我們只是沒有通常擁有的彈藥。

So that's kind of the take forward and I think we'll be in a better inventory position, better merchandise mix position this year relative to last year.

所以這是一種進步，我認為與去年相比，今年我們將處於更好的庫存狀況、更好的商品組合狀況。

Got you. And then in terms of the inventory, are you pretty much now flushed out of the higher cost inventory. How should we think about that?

明白了然後就庫存而言，您現在是否已經從成本較高的庫存中沖掉了。我們應該如何考慮？

We pretty much are, Anthony. The freight costs had been declining all -- really all last year after it spiked early. And now we're in the period where most of the buys that we have on the floor and in our DCs reflect that.

我們幾乎是，安東尼。運費一直在下降——實際上是在去年早些時候飆升之後。現在我們正處於我們在場內和 DC 中的大部分購買都反映了這一點的時期。

So right now, the freight looks like it will be a benefit this year as well as the distribution center cost affected this. Those 2 spiked at about the same time and affected the seasonal selling in Q4 and then bled over a little bit into Q1. And as we work our way through the rest of the year, absent any change in the supply chain environment, that seems to be through.

所以現在，運費看起來會在今年受益，配送中心成本也會影響到這一點。這兩個幾乎同時飆升並影響了第四季度的季節性銷售，然後在第一季度略有下降。當我們在今年餘下的時間裡努力工作時，供應鏈環境沒有任何變化，這似乎已經過去了。

Got you. Okay. And then in terms of the merchandise margins, I think, Mike, you mentioned that so far, Q1 to date, they're running about 150 basis points higher than a year ago.

明白了好的。然後就商品利潤率而言，我認為，邁克，你提到到目前為止，到目前為止，第一季度，它們比一年前高出約 150 個基點。

If you're -- if you could just kind of help us understand as far as if everything goes kind of according to your plan as far as being able to head on your goals as far as this rebalanced merchandise strategy? What's kind of the potential improvement for merch margins? .

如果你 - 如果你能幫助我們了解一切都按照你的計劃進行，能夠實現你的目標，就這種重新平衡的商品戰略而言？商品利潤有哪些潛在改善？ .

Yes. So we're talking about 150 basis points so far this quarter. And just keep in mind, last year first quarter was our highest margin quarter. We hadn't really gotten to the point where we started discounting aggressively.

是的。因此，本季度到目前為止，我們談論的是 150 個基點。請記住，去年第一季度是我們利潤率最高的季度。我們還沒有真正達到開始大幅打折的地步。

So we're up against kind of the toughest comparison, if you will, on the merchandise margin, and we're eclipsing it right now so far, which is good news.

因此，如果你願意的話，我們在商品利潤率方面面臨著最艱難的比較，到目前為止，我們正在超越它，這是個好消息。

And as we get into the second, third and fourth quarters, we were doing a lot of discounting, we're trying to clear a lot of inventory, and we don't have that overhang this year that we did last year. So I think the possibilities there in terms of running at a higher merchandise margin for the balance of the year is there for us.

當我們進入第二、第三和第四季度時，我們進行了很多折扣，我們正試圖清理大量庫存，今年我們沒有去年那樣的積壓。因此，我認為我們有可能在今年餘下時間以更高的商品利潤率運行。

Got you. Okay. And then lastly, as far as this rebalanced merchandise strategy. So obviously, I think it makes a lot of sense given the current slowdown -- macro slowdown.

明白了好的。最後，就這種重新平衡的商品策略而言。很明顯，鑑於當前的經濟放緩——宏觀經濟放緩，我認為這很有意義。

Are you looking to do more advertising? I mean what is going to be the main way that you're looking to get people in the stores so they know that your -- you do have more affordable price points?

你想做更多的廣告嗎？我的意思是，您希望吸引人們進入商店的主要方式是什麼，以便他們知道您的 - 您確實有更實惠的價格點？

It's a good question. I mean we -- we give a lot of thought in terms of heading into what is kind of a recessionary-like environment, and our belief here is that our promotional strategy can really be effective in driving that traffic.

這是個好問題。我的意思是我們 - 我們在進入類似衰退的環境方面進行了很多思考，我們相信我們的促銷策略可以真正有效地推動流量。

I mean we've got some margin room to do discounting, both at the category level, using some coupons and then backing that up with a strong marketing message. We've already seen some things in Q1 that are working.

我的意思是我們有一些利潤空間可以在類別級別進行折扣，使用一些優惠券，然後用強大的營銷信息來支持它。我們已經在第一季度看到了一些正在發揮作用的東西。

And so we're trying to -- we're kind of looking at this week to week and seeing what worked, and we're going to apply that going forward. And with a little bit more margin to work with, I think that will help us.

因此，我們正在努力——我們每週都在觀察，看看什麼有效，我們將在未來應用它。有了更多的工作餘地，我認為這會對我們有所幫助。

And then as we get into the back half, I think we'll have more of an assortment to back it up. So I think it's a lot about our promotional strategy. That's where we're really spending our time and trying to understand what's driving it and when it does, how to deploy that going forward. So that's what I would say there.

然後當我們進入後半部分時，我認為我們會有更多的分類來支持它。所以我認為這在很大程度上與我們的促銷策略有關。這就是我們真正花費時間並試圖了解驅動它的原因以及它何時發生的地方，以及如何部署它。這就是我要說的。

Got it. Okay. Well, thank you and best of luck. .

知道了。好的。嗯，謝謝你，祝你好運。 .

Thanks, Anthony.

謝謝，安東尼。

Thank you.

謝謝。

And our next question comes from John Lawrence from Benchmark.

我們的下一個問題來自 Benchmark 的 John Lawrence。

Congrats Woody, for hopefully a wonderful retirement. We have enjoyed it over the last few years, thanks.

恭喜 Woody，希望他能有一個美好的退休生活。在過去的幾年裡，我們很享受它，謝謝。

Thank you so much, John.

非常感謝你，約翰。

Would you talk about -- I mean, we talk about 40% of the mix, [while] we get to the second half. How much of that -- what percentage would that be now as far as the value merchandise opening price point? How much of the mix would we have today?

你能談談——我的意思是，我們談論 40% 的組合，[而]我們進入下半場。其中有多少 - 就價值商品開盤價而言，現在的百分比是多少？我們今天會有多少混合？

That's a good question because we are working towards getting it up to that 40%. And I want to talk about the components that make that up. But right now, we're running about 30%. Traditionally, when you look at it on an annual basis, we've been around 35%.

這是一個很好的問題，因為我們正在努力將其提高到 40%。我想談談構成它的組件。但是現在，我們運行了大約 30%。傳統上，當你每年查看它時，我們一直在 35% 左右。

So to move that category by 5% or 6% in the overall scheme of things is pretty good. And what we did to fund that was that we went back and we picked all of our items in furniture that have been very successful and have caused us to have gains in the past years. and we really narrowed that down, and we took some of those dollars out of furniture to fund this increase of new items that are more in line with our taste level more in line with our design but certainly below the price points that we've had.

因此，在整體方案中將該類別移動 5% 或 6% 是非常好的。我們為資助所做的事情是，我們回去了，我們挑選了家具中的所有物品，這些物品非常成功，並使我們在過去幾年中有所收穫。我們真的縮小了範圍，我們從家具中拿出了一些錢來資助新產品的增加，這些新產品更符合我們的品味水平，更符合我們的設計，但肯定低於我們的價格點.

And we've rebalanced our marketing that was very heavily focused last year on room settings and higher ticket and kind of said, let's do both. Let's have some of that, but it's also really emphasize to our core customers that we have this new quick come in, surprise and delight, pick up something around $20 to $30 and really make happiness happen in our stores. And the stores have embraced it. Our customers are loving it.

我們已經重新平衡了去年非常關注房間設置和更高票價的營銷，並且有點說，讓我們兩者兼顧。讓我們有一些，但它也真正向我們的核心客戶強調，我們有這個新的快速進來，驚喜和喜悅，拿起大約 20 到 30 美元的東西，真正讓幸福發生在我們的商店。商店已經接受了它。我們的客戶很喜歡它。

And so as those products flow in, and we actually -- not just the flow in product, but we emphasize how we show those products in the store because remember, we had that up to maybe 30% in the past, but we made it almost like a hunt that the customer had to find.

因此，當這些產品流入時，我們實際上 - 不僅僅是產品流，而且我們強調我們如何在商店中展示這些產品，因為請記住，我們過去可能有 30%，但我們做到了幾乎就像客戶必須找到的狩獵一樣。

Now we're putting that on table, really focusing on them and saying, here's a whole table of items under $20, if you're interested in that. And the taste level and items, they really look great.

現在我們把它擺在桌面上，真正專注於它們並說，如果您對此感興趣，這裡有一整張低於 20 美元的商品。還有品位和品位，真的很好看。

So a lot of work's gone into that. Amy Sullivan and her team have done a fantastic job about recalibrating towards what we think the customer wants right now and being able to make those adjustments, we can reap the benefits this year.

所以很多工作都進入了。艾米·沙利文 (Amy Sullivan) 和她的團隊在重新校准我們認為客戶現在想要的東西並能夠做出這些調整方面做得非常出色，我們今年可以從中獲益。

Yes. And just quickly, would you give us just a little insight into maybe a couple of those categories that you're really aiming for or showing some promise first half of the year that stretch -- consumer is going to find a real value?

是的。很快，你能不能讓我們稍微了解一下你真正瞄準的幾個類別，或者在今年上半年展示一些承諾——消費者會找到真正的價值？

Yes. Really, there's a couple that have been ongoing successful both in the back half of last year and certainly into this year. Our customer loves newness. So our floral category has been wonderful. It kind of feeds into that lower price point coming in and getting something, whether it's a Reef or an arrangement for your table. So that's been doing really well.

是的。真的，有一對夫婦在去年下半年和今年肯定都取得了成功。我們的客戶喜歡新鮮事物。所以我們的花卉類別非常棒。它有點融入了進入並獲得某些東西的較低價格點，無論是珊瑚礁還是餐桌佈置。所以這一直做得很好。

Our textile business continues to do really well. And our furniture business at the end of last year was very good, and this year, it's stabilized and our inventory levels are kind of where we want them to be.

我們的紡織業務繼續做得很好。去年年底我們的家具業務非常好，今年穩定下來，我們的庫存水平達到了我們希望的水平。

So we have multiple categories that are doing well. And right now, it's just the balancing and making sure we think we have some payback that we needed to do in some decorative accessories where our price points got a little too high, and we lowered those so that somebody can come in and buy something for their home that's fun and exciting.

所以我們有多個表現良好的類別。而現在，這只是平衡，並確保我們認為我們需要在一些裝飾配件上做一些回報，我們的價格點有點太高了，我們降低了這些，以便有人可以進來買東西他們的家既有趣又令人興奮。

We've had some pluses and minuses in our [wall decor] business. But generally, our art business has been pretty well done for this past. And so there are definitely pluses and minuses. And I think that our stores probably look better than they've looked for a long time. If you walk in, it doesn't look like we cut our inventory. It looks like we've just really leaned into the items that we feel like the customer is desiring right now.

我們的 [牆壁裝飾] 業務有一些優點和缺點。但總的來說，過去我們的藝術業務做得很好。所以肯定有優點和缺點。而且我認為我們的商店看起來可能比他們很長一段時間以來看起來更好。如果你走進去，看起來我們並沒有削減庫存。看起來我們只是真正了解了我們認為客戶現在想要的項目。

Great. Good luck.

偉大的。祝你好運。

Thank you.

謝謝。

And ladies and gentlemen, with that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to the management team for any closing remarks.

女士們先生們，我們將結束今天的問答環節。我想將發言權交還給管理團隊，聽取任何結束語。

Yes, I'd like to just say thank you for the past 4.5 years. With your support. I think that we have done so much to stabilize the ship and get us ready for the next 10 to 15 years as a value player in the home furnishings pyramid for specialty.

是的，我只想對過去的 4.5 年說聲謝謝。在您的支持下。我認為我們已經做了很多工作來穩定這艘船，並讓我們為未來 10 到 15 年做好準備，成為專業家居金字塔中的價值參與者。

And I just want to say thank you to everyone, thank you to every associate that's been working so hard on this transition and thanks to all of our supporters out there, and look forward to better results. Thanks.

我只想對大家說聲謝謝，感謝每一位在這次過渡中一直努力工作的同事，感謝我們所有的支持者，並期待更好的結果。謝謝。

And ladies and gentlemen, this does conclude today's teleconference. You may now disconnect your lines at this time. Thank you for your participation.

女士們，先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。

Thank you.

謝謝。