Brand House Collective Inc (TBHC) 2024 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 February 1, 2025.

大家早安，感謝大家參加今天的電話會議，討論 Kirkland 截至 2025 年 2 月 1 日的第四季度和財政年度的財務業績。

Joining us today are Kirkland's Home CEO, Amy Sullivan; EVP and CFO, Mike Madden; and the company's External Director of Investor Relations, Caitlin Churchill. (Operator Instructions)

今天與我們一起參加活動的有 Kirkland's Home 執行長 Amy Sullivan；執行副總裁兼財務長 Mike Madden；以及該公司的外部投資者關係總監凱特琳·邱吉爾 (Caitlin Churchill)。（操作員指示）

Before we go further, I would like to turn the call over to Ms. Churchill as she reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Caitlin, please go ahead.

在我們進一步討論之前，我想將電話轉給邱吉爾女士，她將根據 1995 年《私人證券訴訟改革法案》的含義閱讀公司的安全港聲明，該聲明對前瞻性陳述提供了重要的警告。凱特琳，請繼續。

Thank you. 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 1,995.

謝謝。除本次電話會議中討論的歷史資訊外，公司管理層所作的聲明均為前瞻性聲明，並根據 1995 年《私人證券訴訟改革法案》的安全港條款作出。

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 of 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，這可能導致凱易未來期間的實際結果與預測結果有重大差異。這些風險和不確定性在 Kirkland 提交給美國證券交易委員會的文件中進行了更詳細的描述。

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.

您還可以透過今天的新聞稿中提供的連結以及公司網站 Kirklands.com 觀看網路直播重播。

Now, I'll turn the call over to Kirkland's CEO Amy Sullivan. Amy?

現在，我將把電話轉給 Kirkland 執行長 Amy Sullivan。艾米？

Thank you Caitlin and good morning everyone.

謝謝凱特琳，大家早安。

Over the past year and a half, we have been intently focused on transforming our Kirkland's home brand through re-engaging our core customer, refocusing our product assortment, and strengthening our omnichannel capabilities. We have seen a significant reactivation of lapsed customers and have delivered positive brick and mortar comparable sales growth for 5 consecutive quarters.

在過去的一年半里，我們一直專注於透過重新吸引核心客戶、重新調整產品組合和加強全通路能力來轉型我們的 Kirkland 家居品牌。我們看到流失客戶的數量大幅回升，並且連續 5 個季度實現了實體店可比銷售額的成長。

In addition, we significantly improved adjusted EBITDA with a fiscal 2024 results reflecting a $6 million year over year EBITDA improvement.

此外，我們大幅提高了調整後的 EBITDA，2024 財年的表現反映 EBITDA 年成長 600 萬美元。

Perhaps most importantly, this year also marked the beginning of our strategic partnership with beyond.

或許最重要的是，今年也標誌著我們與 Beyond 策略夥伴關係的開始。

This partnership not only helped recapitalize our balance sheet but also opened new avenues for growth, enabling us to further reimagine our future as a retail house of brands, leveraging our expertise in merchandizing, supply chain, and store operations.

此次合作不僅幫助我們重組資產負債表，還開闢了新的成長途徑，使我們能夠進一步重新構想作為品牌零售公司的未來，利用我們在商品銷售、供應鏈和門市營運方面的專業知識。

We believe these brands need an omnichannel strategy to meet the customer whenever and wherever she wants to shop.

我們相信這些品牌需要全通路策略來滿足顧客隨時隨地的購物需求。

And while we intend to reimagine the physical retail experience for each brand, we recognize the challenges in the current consumer and operating environment. Therefore, we are shifting our priorities to deliver value to our customers through an aggressive but capital li store conversion strategy, leveraging Bed Bath and Beyond home and overstock.

雖然我們打算重新構想每個品牌的實體零售體驗，但我們認識到當前消費者和營運環境中的挑戰。因此，我們正在轉變工作重點，透過積極但資本充足的門市轉換策略，利用 Bed Bath and Beyond 家居和庫存過剩的優勢，為客戶提供價值。

As announced this morning, we are in active discussions to finalize a $5 million term loan expansion with beyond that we expect to close next week, which will be used for general working capital purposes and to support our store conversion strategy.

正如今天早上宣布的那樣，我們正在積極討論最終確定 500 萬美元的定期貸款擴展，此外，我們預計將於下週完成，這筆貸款將用於一般營運資金用途並支持我們的門市轉型策略。

First, let's discuss the introduction of and our vision for Bed Bath and Beyond Home stores.

首先，讓我們討論一下 Bed Bath and Beyond Home 商店的介紹和我們的願景。

We see this as a sister brand to Kirkland's home, allowing us to maximize the current contribution of our existing home decor and furnishings inventory while taking advantage of the iconic Bed Bath and Beyond brand name through simple storefront conversions without capital intensive remodels.

我們將其視為 Kirkland's home 的姊妹品牌，使我們能夠最大限度地發揮現有家居裝飾和家具庫存的當前貢獻，同時透過簡單的店面改造（無需進行資本密集型改造）利用標誌性的 Bed Bath and Beyond 品牌名稱。

These locations will have a differentiated assortment from our current Kirkland's Home stores as we expand bedroom and bathroom and reduce slower turning categories such as wall and lighting.

隨著我們擴大臥室和浴室的規模，並減少牆壁和照明等周轉較慢的類別，這些地點的商品種類將與我們目前的 Kirkland's Home 商店有所差異。

We expect these stores to deliver more consistent foot traffic and improved inventory turns, driving increased store productivity compared to our current Kirkland's home locations.

我們預計這些商店將提供更穩定的人流量和更高的庫存週轉率，與我們目前的 Kirkland 總店相比，從而提高商店的生產力。

Bed Bath and Beyond Home blends the category expertise we have in house with the power of the iconic name and is well positioned to compete at a national level as we deliver style and value for every corner of her home.

Bed Bath and Beyond Home 將我們內部擁有的類別專業知識與標誌性品牌的力量融為一體，並且在全國範圍內具有競爭力，因為我們為她家中的每個角落提供風格和價值。

Next, we see tremendous opportunity in the overstock name as a true off price brand filled with a treasure hunt of deals from our family of friends.

接下來，我們在 overstock 這個品牌中看到了巨大的商機，它是一個真正的折扣品牌，充滿了來自我們家人和朋友的尋寶交易。

Excess inventory from our best vendor partners and a more profitable solution for liquidating returns. We tested a similar concept in Kirkland's home stores called the Attic, and given the incremental list we saw, we believe a fully dedicated overstock store should deliver at least 2 times the revenue of a current Kirkland's home store driven by an increase in average tickets.

我們的最佳供應商合作夥伴擁有過剩庫存，並且提供更有利可圖的清算退貨解決方案。我們在 Kirkland 家居用品店 Attic 測試了類似的概念，根據我們看到的增量清單，我們相信，一家完全專注於庫存過剩的商店應該能夠帶來至少兩倍於當前 Kirkland 家居用品店的收入，這得益於平均票價的上漲。

Following the initial real estate review we completed earlier this year, we have now expanded that review as we begin to roadmap a multi-brand national real estate strategy.

繼今年稍早完成初步房地產審查之後，我們現已擴大審查範圍，並開始製定多品牌全國房地產策略。

Through deep analysis of historical store performance, current consumer demographic, and the evolving competitive landscape, we see significant opportunity to accelerate store conversion in the markets we believe will yield the greatest results.

透過深入分析歷史門市業績、當前消費者人口統計數據以及不斷變化的競爭格局，我們發現在我們認為將產生最大成果的市場中加速門市轉化存在重大機會。

We have identified a Nashville location as the first of many Bed Bath and Beyond home conversions, as well as 4 initial locations for the Overstock brand.

我們已將納許維爾的一處地點確定為眾多 Bed Bath and Beyond 家居改造項目中的第一家，同時也將為 Overstock 品牌確定 4 個初始地點。

Overall, we remain committed to maximizing the progress we have made in our best Kirkland's Home stores. And while timing of opening our initial pilot of the traditional Bed Bath and Beyond True Blue store and Bye Bye Baby store in Nashville may be slightly pushed due to the reprioritization of strategies at the moment, we are continuing to work closely with our design partner JLL as we set the vision for these brands.

總體而言，我們仍然致力於最大限度地發揮我們在最好的 Kirkland's Home 商店所取得的進步。雖然由於目前策略優先順序的重新調整，我們在納許維爾開設傳統 Bed Bath and Beyond True Blue 商店和 Bye Bye Baby 商店的初始試點時間可能會略有推遲，但我們將繼續與我們的設計合作夥伴 JLL 密切合作，為這些品牌設定願景。

We believe these pilots, along with our Capital li, Bed Bath and Beyond Home, and overstock store conversions allow us to leverage our store base to drive profitable growth for each brand.

我們相信，這些試點項目，加上我們的 Capital Li、Bed Bath 和 Beyond Home 以及庫存過剩商店的轉換，使我們能夠利用我們的商店基礎來推動每個品牌的盈利增長。

Shifting to our e-commerce channel, while we saw improvements in conversion rates and an increase in transaction count and units sold in 2024, this was not enough to offset the overall revenue decline, largely driven by declines in our higher ticket drop ship business.

轉向我們的電子商務管道，雖然我們看到轉換率有所提高，交易數量和銷售單位在 2024 年也有所增加，但這不足以抵消整體收入的下降，這主要是由於我們的高價直銷業務下滑所致。

As we shared in February, we are intently focused on improving the profitability of our e-commerce channel.

正如我們在二月所分享的，我們專注於提高電子商務管道的獲利能力。

We are taking an aggressive approach to skew rationalization and optimizing our inventory allocation to take advantage of buy online, pick up and store across our store fleet.

我們正在採取積極的方式來傾斜合理化並優化我們的庫存分配，以利用在線購買、提貨和在我們的商店中存儲的優勢。

While early in our optimization, we have begun to see significant year over year margin improvement in our direct to consumer orders and are beginning the same process in our drop ship business.

雖然我們處於優化的早期階段，但我們已經開始看到直接面向消費者的訂單的利潤率同比顯著提高，並且我們也開始在直銷業務中實施同樣的流程。

Our mandate to deliver profitability may result in revenue declines in this channel initially, but e-commerce is an important part of our omnichannel vision. It is our largest store and will be part of the connective tissue driving by online pickup and store to both Kirkland's home and Bed Bath and Beyond home.

我們實現盈利的任務最初可能會導致該管道的收入下降，但電子商務是我們全通路願景的重要組成部分。這是我們最大的商店，並將成為透過線上提貨和商店連接 Kirkland's 家居和 Bed Bath and Beyond 家居的連接組織的一部分。

Before I turn the call over to Mike, let me touch on how we are navigating the current tariff situation.

在我將電話轉給麥克之前，請容許我談談我們如何應對當前的關稅狀況​​。

While we have reduced our exposure to China from over 90% just a few years ago to approximately 70% in 2024. We are actively working through a number of strategies to help mitigate the impact the current tariff policy has on our business.

雖然我們已將對中國的曝險從幾年前的 90% 以上減少到 2024 年的 70% 左右，但我們正在積極制定一系列策略，以幫助減輕當前關稅政策對我們業務的影響。

Our merchandizing and sourcing teams are actively engaged in cost negotiations, resourcing opportunities, and strategic price increases.

我們的商品銷售和採購團隊積極參與成本談判、資源機會和策略性價格上漲。

Assuming that current tariffs are tempered in the near term and through the efforts we have under way with the support of our long term vendor partners, I believe in our ability to navigate these headwinds.

假設當前的關稅在短期內得到緩和，並且透過我們在長期供應商合作夥伴的支持下所做的努力，我相信我們有能力克服這些不利因素。

The current environment notwithstanding, we have a golden opportunity alongside our partners at beyond to leverage these iconic brands to drive profitable growth.

儘管當前環境如此，我們仍然擁有與 Beyond 合作夥伴共同利用這些標誌性品牌推動獲利成長的黃金機會。

With that, I'll turn the call over to Mike to review our 4th quarter financial results and current views on performance to date in more detail.Thank you, Caitlin, and good morning, everyone. Over the past 1.5 years, we have been intently focused on transforming our Kirkland's Home brand through reengaging our core customer, refocusing our product assortment and strengthening our omnichannel capabilities. We have seen a significant reactivation of lapsed customers and have delivered positive brick-and-mortar comparable sales growth for 5 consecutive quarters.

說完這些，我將把電話交給麥克，讓他更詳細地回顧我們第四季度的財務業績以及迄今為止對業績的當前看法。謝謝你，凱特琳，大家早安。在過去的一年半里，我們一直專注於透過重新吸引核心客戶、重新調整產品組合和加強全通路能力來轉型我們的 Kirkland's Home 品牌。我們看到流失客戶的數量大幅回升，並且連續 5 個季度實現了實體店可比銷售額的正成長。

In addition, we significantly improved adjusted EBITDA with a fiscal 2024 results, reflecting a $6 million year-over-year EBITDA improvement. Perhaps most importantly, this year also marked the beginning of our strategic partnership with Beyond. This partnership not only helped to recapitalize our balance sheet, but also opened new avenues for growth enabling us to further reimagine our future as a retail health of brands, leveraging our expertise in merchandising, supply chain and store operations. We believe these brands need an omnichannel strategy to meet the customer whenever and wherever she wants to shop.

此外，我們 2024 財年的調整後 EBITDA 也顯著改善，與去年同期相比 EBITDA 成長了 600 萬美元。或許最重要的是，今年也標誌著我們與 Beyond 策略夥伴關係的開始。此次合作不僅有助於重組我們的資產負債表，而且還開闢了新的成長途徑，使我們能夠利用我們在商品銷售、供應鏈和店面營運方面的專業知識，進一步重新構想我們作為品牌零售健康的未來。我們相信這些品牌需要全通路策略來滿足顧客隨時隨地的購物需求。

And while we intend to reimagine the physical retail experience for each brand, we recognize the challenges in the current consumer and operating environment. Therefore, we are shifting our priorities to deliver value to our customers through an aggressive, but capital-light store conversion strategy leveraging Bed Bath & Beyond Home and Overstock. As announced this morning, we are in active discussions to finalize a $5 million term loan expansion with Beyond that we expect to close next week which will be used for general working capital purposes and to support our store conversion strategy.

雖然我們打算重新構想每個品牌的實體零售體驗，但我們認識到當前消費者和營運環境中的挑戰。因此，我們正在轉變我們的工作重點，透過利用 Bed Bath & Beyond Home 和 Overstock 的積極但輕資本的店鋪轉換策略為客戶提供價值。正如今天早上宣布的那樣，我們正在與 Beyond 積極討論敲定 500 萬美元的定期貸款擴展協議，預計下週將完成，該貸款將用於一般營運資金用途並支持我們的門店轉型戰略。

First, let's discuss the introduction of and our vision for Bed Bath & Beyond Home stores. We see this as a sister brand to Kirkland's Home, allowing us to maximize the current contribution of our existing home decor and furnishings inventory while taking advantage of the iconic Bed Bath & Beyond brand name through simple storefront conversions without capital-intensive remodels.

首先，讓我們討論一下 Bed Bath & Beyond Home 商店的介紹和我們的願景。我們將其視為 Kirkland's Home 的姊妹品牌，使我們能夠最大限度地發揮現有家居裝飾和家具庫存的當前貢獻，同時透過簡單的店面改造（無需進行資本密集型改造）利用標誌性的 Bed Bath & Beyond 品牌名稱。

These locations will have a differentiated assortment from our current Kirkland's Home stores as we expand bedroom and bathroom and reduced lower-turning categories such as wall and lighting. We expect these stores to deliver more consistent foot traffic and improved inventory turns, driving increased store productivity compared to our current Kirkland's Home location.

隨著我們擴大臥室和浴室的商品種類，並減少牆壁和照明等低週轉率的商品類別，這些地點的商品種類將與我們目前的 Kirkland's Home 商店有所差異。我們預計這些商店將帶來更穩定的人流量和更高的庫存週轉率，與我們目前的 Kirkland's Home 門市相比，從而提高商店的生產力。

Bed Bath & Beyond Home lends the category expertise we have in-house with the power of the iconic name and is well positioned to compete at a national level as we deliver style and value for every corner of her home.

Bed Bath & Beyond Home 將我們內部擁有的品類專業知識與標誌性品牌的力量相結合，並具備在全國範圍內競爭的有利條件，因為我們為她家中的每個角落提供了風格和價值。

Next, we see tremendous opportunity in the Overstock name as a true off-price brand filled with a treasure hunt of deals from our family of brands, excess inventory from our best vendor partners and a more profitable solution for liquidating returns. We tested a similar concept in Kirkland's Home stores called The Attic. And given the incremental lift we saw, we believe a fully dedicated Overstock store should deliver at least 2x the revenue of a current Kirkland's Home store driven by an increase in average ticket.

其次，我們在 Overstock 這個真正的折扣品牌中看到了巨大的機遇，它充滿了來自我們品牌家族的交易寶藏、來自我們最佳供應商合作夥伴的過剩庫存以及更有利可圖的清算回報解決方案。我們在 Kirkland's Home 商店測試了類似的概念，稱為 The Attic。鑑於我們看到的增量增長，我們相信，在平均票價上漲的推動下，完全專注於 Overstock 的商店應該能夠帶來至少當前 Kirkland's Home 商店收入的 2 倍。

Following the initial real estate review we completed earlier this year, we have now expanded that review as we begin to road map a multibrand national real estate strategy. Through deep analysis of historical store performance, current consumer demographic and the evolving competitive landscape, we see significant opportunity to accelerate store conversions and the markets we believe will yield the greatest results. We have identified a Nashville location as the first of many Bed Bath & Beyond Home conversions as well as 4 initial locations for the Overstock brand.

繼今年稍早完成初步房地產審查之後，我們現已擴大審查範圍，並開始製定多品牌全國房地產策略。透過深入分析歷史門市業績、當前消費者人口結構和不斷變化的競爭格局，我們發現了加速門市轉換​​的巨大機遇，並且我們認為這些市場將產生最大的效益。我們已將納許維爾的一家門市確定為 Bed Bath & Beyond Home 眾多改建門市中的第一家，同時也將為 Overstock 品牌確定 4 家初始門市。

Overall, we remain committed to maximizing the progress we have made in our best Kirkland's Home stores. And while timing of opening our initial pilot of the traditional Bed Bath & Beyond TrueBlue store and BuyBuy Baby store in Nashville may be slightly pushed due to the reprioritization of strategies at the moment, we are continuing to work closely with our design partner, JLL as we set the vision for these brands.

總體而言，我們仍然致力於最大限度地發揮我們在最好的 Kirkland's Home 商店所取得的進步。雖然由於目前策略優先順序的重新調整，我們在納許維爾開設傳統 Bed Bath & Beyond TrueBlue 商店和 BuyBuy Baby 商店的初始試點時間可能會略有推遲，但我們將繼續與我們的設計合作夥伴 JLL 密切合作，為這些品牌設定願景。

We believe these pilots, along with our capital-light, Bed Bath & Beyond Home and Overstock store conversions allow us to leverage our store base to drive profitable growth for each brand.

我們相信，這些試點項目以及我們的輕資本化、Bed Bath & Beyond Home 和 Overstock 商店轉型使我們能夠利用我們的商店基礎來推動每個品牌的獲利成長。

Shifting to our e-commerce channel. While we saw improvements in conversion rates, and an increase in transaction count and units sold in 2024, this was not enough to offset the overall revenue decline, largely driven by declines in our higher ticket dropship business. As we shared in February, we are intently focused on improving the profitability of our e-commerce channel.

轉向我們的電子商務管道。雖然我們看到轉換率有所提高，2024 年交易數量和銷售單位也有所增加，但這不足以抵消整體收入的下降，這主要是由於我們的高價直銷業務下滑所致。正如我們在二月所分享的，我們專注於提高電子商務管道的獲利能力。

We are taking an aggressive approach to SKU rationalization and optimizing our inventory allocation to take advantage of buy online, pick up in store across our store fleet. While early in our optimization, we have begun to see significant year-over-year margin improvement in our direct-to-consumer orders and are beginning the same process in our dropship business.

我們正在積極地對 SKU 進行合理化，並優化我們的庫存分配，以充分利用我們的門市在線購買、店內取貨的優勢。雖然我們處於優化的早期階段，但我們已經開始看到直接面向消費者的訂單的利潤率同比顯著提高，並且我們也開始在直銷業務中採取同樣的流程。

Our mandate to deliver profitability may result in revenue declines in this channel initially, but e-commerce is an important part of our omnichannel vision, it is our largest store and will be part of the connective tissue driving buy online pick up in store to both Kirkland's Home and Bed Bath & Beyond Home.

我們實現盈利的任務最初可能會導致該管道的收入下降，但電子商務是我們全通路願景的重要組成部分，它是我們最大的商店，並將成為推動 Kirkland's Home 和 Bed Bath & Beyond Home 的在線購買店內取貨的連接組織的一部分。

Before I turn the call over to Mike, let me touch on how we are navigating the current tariff situation. While we have reduced our sourcing exposure to China from over 90% just a few years ago to approximately 70% in 2024, we are actively working through a number of strategies to help mitigate the impact the current tariff policy has on our business.

在我將電話轉給麥克之前，請容許我談談我們如何應對當前的關稅狀況​​。雖然我們已將對中國的採購比例從幾年前的 90% 以上降低到 2024 年的 70% 左右，但我們正在積極制定一系列策略，以幫助減輕當前關稅政策對我們業務的影響。

Our merchandising and sourcing teams are actively engaged in cost negotiations, resourcing opportunities and strategic price increases. Assuming the current tariffs are tempered in the near term and through the efforts we have underway with the support of our long-term vendor partners, I believe in our ability to navigate these headwinds. The current environment notwithstanding, we have a golden opportunity alongside our partners at Beyond to leverage these iconic brands to drive profitable growth.

我們的銷售和採購團隊積極參與成本談判、資源機會和策略性價格上漲。假設當前的關稅在短期內得到緩和，並且透過我們在長期供應商合作夥伴的支持下所做的努力，我相信我們有能力克服這些不利因素。儘管當前環境如此，我們仍然擁有與 Beyond 合作夥伴共同利用這些標誌性品牌推動獲利成長的絕佳機會。

With that, I'll turn the call over to Mike to review our fourth quarter financial results and current views on performance to date in more detail.

說完這些，我將把電話轉給麥克，讓他更詳細地回顧我們第四季的財務表現以及迄今為止的業績表現。

Thank you, Amy, and good morning. The fourth quarter capped off another year of progress in our transformation efforts. And though there is still work to be done, as Amy reviewed, we are pleased to have delivered significant year-over-year improvement in adjusted EBITDA for fiscal 2024.

謝謝你，艾米，早安。第四季為我們轉型努力取得進展的另一年畫上了圓滿的句點。儘管仍有工作要做，但正如艾米所說，我們很高興看到 2024 財年的調整後 EBITDA 年比顯著改善。

While we are continuing to navigate a highly dynamic environment, the agility and resilience that our teams have demonstrated thus far should continue to serve us well as we move forward.

雖然我們將繼續在高度動態的環境中前行，但我們的團隊迄今所展現出的敏捷性和韌性應該會繼續為我們未來的發展提供良好的服務。

I will share more on our current thoughts for fiscal 2025 in a moment, but first, let me review our fourth quarter performance. As a reminder, the fourth quarter of fiscal 2024 included 13 weeks as compared to 14 weeks in the fourth quarter of last year. The impact from the extra week and the associated calendar shift resulted in a headwind of approximately $10 million to the year-over-year comparison in the fourth quarter of fiscal 2024.

稍後我將分享更多關於我們目前對 2025 財年的想法，但首先，讓我回顧一下我們第四季的業績。提醒一下，2024 財年第四季有 13 週，而去年第四季有 14 週。額外一周和相關日曆變化的影響導致 2024 財年第四季度的同比損失約為 1000 萬美元。

For the fourth quarter, net sales declined to $148.9 million versus $165.9 million in the prior year quarter. The decrease was primarily driven by the extra week and calendar shift, a decline in the store count of approximately 4% and the decline in e-commerce sales, partially offset by growth in comparable store sales.

第四季淨銷售額下降至 1.489 億美元，去年同期為 1.659 億美元。下降的主要原因是額外一周和日曆變化、商店數量下降約 4% 以及電子商務銷售額下降，但可比商店銷售額的成長部分抵消了這一影響。

On a 13-week shifted basis, comparable sales decreased 0.6% compared to the fourth quarter of 2023, including a 1.6% increase in comparable store sales that was offset by a 7.9% decline in e-commerce sales. The decrease in overall comparable sales was primarily driven by a decrease in consolidated average ticket and e-commerce traffic partially offset by an increase in consolidated conversion and store traffic.

以 13 週輪換計算，可比銷售額與 2023 年第四季相比下降了 0.6%，其中可比店銷售額增長了 1.6%，但被電子商務銷售額下降 7.9% 所抵消。整體可比較銷售額的下降主要是由於合併平均票價和電子商務流量的下降，但被合併轉換率和商店流量的增加部分抵消。

As we discussed in our last call, given the calendar shift, we believe that it is best to look at the fiscal months of November and December combined when breaking down comparable sales within the period. The November and December combined comp was down 0.6%, and the January comp was also down 0.6%.

正如我們在上次電話會議中所討論的那樣，考慮到日曆的變化，我們認為在細分期間內的可比銷售額時，最好將 11 月和 12 月的財政月份結合起來看。11 月和 12 月的合併年減了 0.6%，1 月的年比也下降了 0.6%。

From a merchandise perspective, we saw increases versus the prior year in the holiday, fragrance, gift and textiles categories reflecting our shift in emphasis to faster-turning lower price point items. However, these increases were not enough to offset declines in the higher ticket categories of furniture, mirrors, art, wall decor and lamps.

從商品角度來看，節日、香水、禮品和紡織品類別的銷售額與前一年相比有所增長，這反映出我們將重點轉向了更快週轉的低價商品。然而，這些增長不足以抵消家具、鏡子、藝術品、牆面裝飾和燈具等高價位類別的下降。

From a geographic perspective, sales performance was relatively consistent across the country with marginally better results in Texas and the South partially offset by weaker results in the Midwest and the West.

從地域角度來看，全國的銷售業績相對一致，德克薩斯州和南部地區的業績略好，但中西部和西部地區的業績較弱，部分抵消了這一影響。

Gross profit margin decreased 180 basis points to 30.3% of sales compared to 32% of sales in the prior quarter. The year-over-year change in gross profit margin was primarily driven by a 150 basis point decline in merchandise margin due to increased promotional activity during the holiday period. Store occupancy costs also increased 50 basis points as a percentage of sales, largely due to deleverage from the sales decline.

毛利率下降 180 個基點至銷售額的 30.3%，而上一季為 32%。毛利率較去年同期變動的主要原因是假日期間促銷活動增加導致商品利潤率下降 150 個基點。店鋪佔用成本佔銷售額的百分比也增加了 50 個基點，這主要是由於銷售額下降導致的去槓桿化。

Partially offsetting these factors was a reduction in outbound freight, which resulted in approximately 30 basis points of improvement as a percentage of sales.

部分抵銷了這些因素的是出站貨運量的減少，導致銷售額百分比提高了約 30 個基點。

Total operating expenses decreased $6.4 million to $36 million or 24.1% of sales compared to $42.4 million or 25.5% of sales in the prior year quarter. The decrease in dollars was primarily the result of lower store and corporate compensation and benefit expenses and reduced advertising costs.

總營運費用減少 640 萬美元至 3,600 萬美元或占銷售額的 24.1%，而去年同期為 4,240 萬美元或占銷售額的 25.5%。金額減少主要是因為商店和公司薪資及福利費用降低以及廣告成本減少。

Adjusted EBITDA, which excludes stock compensation, impairment and severance charges and certain expenses related to the Beyond transaction, was $12 million compared to $14.2 million in the prior year quarter.

調整後的 EBITDA（不包括股票薪酬、減損和遣散費以及與 Beyond 交易相關的某些費用）為 1,200 萬美元，而去年同期為 1,420 萬美元。

Operating income in the fourth quarter of 2024 was $9.2 million compared to operating income of $10.7 million in the prior year quarter.

2024 年第四季的營業收入為 920 萬美元，而去年同期的營業收入為 1,070 萬美元。

Excluding the items I reviewed in adjusted EBITDA, adjusted operating income was $9.7 million compared to $11.3 million in the prior year quarter.

不包括我在調整後的 EBITDA 中審查的項目，調整後的營業收入為 970 萬美元，而去年同期為 1130 萬美元。

Net interest expense was $1.7 million for the quarter compared to approximately $900,000 in the prior year quarter. The increase compared to the prior year quarter was due to higher borrowing levels and higher interest rates.

本季淨利息支出為 170 萬美元，而去年同期約為 90 萬美元。與去年同期相比的成長是由於借款水準和利率的提高。

Net income was $7.9 million for the quarter compared to $10.1 million for the prior year quarter. Excluding the impact of stock compensation, impairment and severance charges and financing related legal and professional fees, not subject to capitalization, adjusted net income was $8.4 million in the quarter compared to $10.7 million in the prior year.

本季淨收入為 790 萬美元，而去年同期為 1,010 萬美元。不包括股票薪酬、減損和遣散費以及與融資相關的法律和專業費用的影響（不進行資本化），本季調整後淨收入為 840 萬美元，而去年同期為 1,070 萬美元。

Adjusted earnings per diluted share was $0.54 compared to $0.82. Approximately half of the year-over-year decline in adjusted EPS was driven by the increase in diluted share count from 13 million shares to 15.8 million shares due to the initial part of the Beyond transaction that was completed in the late third quarter.

調整後每股攤薄收益為 0.54 美元，之前為 0.82 美元。調整後每股盈餘年減約一半是由於 Beyond 交易的初始部分於第三季末完成，導致稀釋股數從 1,300 萬股增加至 1,580 萬股。

From a balance sheet perspective, we ended the quarter with $81.9 million in inventory, a 10.5% increase from the $74.1 million at the end of the prior year. Much of this increase was expected reflecting higher year-over-year freight costs and the timing of our planned receipt flow. The inventory comparison also reflects lower shrinkage reserves versus the prior year.

從資產負債表的角度來看，本季末我們的庫存為 8,190 萬美元，比上年末的 7,410 萬美元增長了 10.5%。預計這一增長很大程度上反映了同比更高的運費成本以及我們計劃的收貨流程的時間。庫存比較也反映出與前一年相比損耗儲備有所下降。

We had debt outstanding of $58.5 million at the end of the quarter, which was comprised of $43 million under our senior revolving line of credit and $15.5 million in debt to Beyond related to the term loan, convertible term loan and the sale of a percentage of Kirkland's future revenues to Beyond, net of debt issuance and original issue discount costs.

截至本季末，我們的未償還債務為 5,850 萬美元，其中包括 4,300 萬美元的高級循環信貸額度和 1,550 萬美元的欠 Beyond 的債務，這些債務與定期貸款、可轉換定期貸款以及將 Kirkland 未來收入的一定比例出售給 Beyond 有關，扣除債務發行和原始發行折扣成本。

Total debt declined $21.9 million compared to the end of the third quarter, reflecting the pay down of our revolving line of credit with free cash flow generated during the fourth quarter.

與第三季末相比，總債務減少了 2,190 萬美元，反映了我們利用第四季度產生的自由現金流償還了循環信貸額度。

Subsequent to fiscal year-end on February 5, 2025, upon shareholder approval of the transaction with Beyond that we announced in October of last year, we converted the $8.5 million Beyond convertible note to equity, and we received $8 million in additional equity financing from Beyond, bringing Beyond equity ownership of our outstanding common stock to approximately 40%.

在 2025 年 2 月 5 日財年結束後，在股東批准我們去年 10 月宣布的與 Beyond 的交易後，我們將 850 萬美元的 Beyond 可轉換票據轉換為股權，並從 Beyond 獲得了 800 萬美元的額外股權融資，使 Beyond 對股權我們已發行約 40%。

Additionally, as we announced this morning, we are in active discussions to finalize a $5 million term loan expansion with Beyond that we expect to close next week. As of May 1, 2025, the company had $44.1 million of outstanding debt and letters of credit under its revolving credit facility with minimal availability pending the closing of the expanded term loan.

此外，正如我們今天上午宣布的那樣，我們正在與 Beyond 積極討論完成 500 萬美元定期貸款擴展，預計將於下週完成。截至 2025 年 5 月 1 日，該公司循環信貸額度下的未償還債務和信用證為 4,410 萬美元，在延長定期貸款結清之前，可用餘額很少。

As a reminder, availability under our revolving credit facility fluctuates largely based on eligible inventory levels and as eligible inventory increases in the second and third quarters in support of our back half sales plans, our borrowing capacity increases correspondingly.

提醒一下，我們的循環信貸額度下的可用性在很大程度上根據合格庫存水平而波動，並且隨著第二季度和第三季度合格庫存的增加以支持我們的後半年銷售計劃，我們的借貸能力也相應增加。

The additional term loan funding from Beyond will provide us with additional short-term flexibility in our borrowing base to build our inventory position for the upcoming holiday periods and as we accelerate our store conversion plans assuming some normalization in tariff policy, particularly regarding the US and China.

Beyond 提供的額外定期貸款資金將為我們的借貸基礎提供額外的短期靈活性，以便我們為即將到來的假期建立庫存，並加快我們的商店轉換計劃，假設關稅政策（特別是美國和中國）恢復正常。

As we noted in our press release this morning given the current 145% tariff on Chinese imported goods, the general uncertainty around tariff and trade policy and the wide range of potential impact on our business, we are unable to forecast sufficient liquidity to maintain our debt covenant compliance over the next 12 months.

正如我們今天早上在新聞稿中指出的那樣，鑑於目前對中國進口商品徵收 145% 的關稅、關稅和貿易政策的普遍不確定性以及對我們業務的廣泛潛在影響，我們無法預測未來 12 個月內是否有足夠的流動性來維持我們的債務契約合規性。

That said, as Amy reviewed, our teams are actively working to resource goods to other countries and domestically as quickly as possible. We are also partnering with our key vendors to manage flow to minimize the impact and sharing the cost. And we are strategically raising prices where possible to offset the impact.

話雖如此，正如艾米所說，我們的團隊正在積極努力，盡快向其他國家和國內提供貨物。我們也與主要供應商合作管理流程，以盡量減少影響並分攤成本。我們正在盡可能地提高價格以抵消影響。

We are hopeful that the current escalations will be resolved, and we are prepared to manage our inventory flow and operating expenses in a disciplined manner as we have in prior years, to ensure adequate liquidity to fund our operations.

我們希望當前的升級問題能夠解決，並且我們準備像前幾年一樣以嚴謹的方式管理我們的庫存流和營運費用，以確保有足夠的流動性來資助我們的營運。

Given the evolving tariff policies as well as the increased uncertainty with respect to broader macroeconomic environment and the consumer landscape, we are not able to provide formal guidance at this time. That said, to be helpful, let me provide some color as to what we've experienced thus far in fiscal 2025. Like others, we experienced a very soft start to the year with February impacted by weather and the broader decline in consumer sentiment. While our store channel has seen an improvement from those trends in the combined March-April period delivering a relatively flat comp, we have seen softer sales trends over the last couple of weeks and our e-commerce business continues to be a headwind to our overall top line performance.

鑑於不斷變化的關稅政策以及更廣泛的宏觀經濟環境和消費者格局的不確定性增加，我們目前無法提供正式指引。話雖如此，為了提供幫助，讓我來介紹一下我們在 2025 財年迄今為止所經歷的情況。與其他國家一樣，我們今年的開局非常疲軟，2 月受到天氣和消費者信心普遍下降的影響。雖然我們的商店通路在 3 月至 4 月期間的趨勢有所改善，實現了相對平穩的同比增長，但過去幾週的銷售趨勢有所疲軟，我們的電子商務業務繼續對我們的整體營收表現造成阻力。

Notwithstanding the current challenges, we continue to believe in the long-term opportunities ahead especially as we layer in our strategic partnership with Beyond. We believe through our transaction with Beyond, we have the potential to accelerate the time line to achieve our long-term targeted margins and growth guidance.

儘管面臨當前挑戰，我們仍然相信未來的長期機遇，特別是當我們與 Beyond 建立策略夥伴關係時。我們相信，透過與 Beyond 的交易，我們有可能加快實現長期目標利潤率和成長指引的時間表。

I'll now turn the call over to Amy for a few closing remarks before we open the call up for questions. Amy?

在我們開始提問之前，我現在將電話交給艾米，請她做幾點結束語。艾米？

Thank you, Mike. We recognize this is our moment to reimagine the future of this company, and although we face headwinds, we are steadfast in our belief that Omnichannel is the best strategy for each of these brands.

謝謝你，麥克。我們意識到這是我們重新構想公司未來的時刻，儘管我們面臨阻力，但我們堅信全通路是每個品牌的最佳策略。

While we have demonstrated our ability to deliver sequential improvements to the business through a thoughtfully curated assortment and compelling brick and mortar experience, our turnaround is not behind us until we return to profitability. Results are all that matter, and we will continue to adapt our operating model to maximize the benefit of the brands in our portfolio while eliminating underperforming assets.

雖然我們已經證明了我們有能力透過精心策劃的商品組合和引人注目的實體店體驗來持續改善業務，但直到我們恢復盈利能力之前，我們的轉機還沒有到來。結果才是最重要的，我們將繼續調整我們的營運模式，以最大限度地發揮我們投資組合中品牌的利益，同時消除表現不佳的資產。

We cannot lose sight of the opportunity on the other side of today's challenges to disrupt the value home sector. We know this customer. We know how to develop and curate attainable style for every budget, and we have strong partners who believe in these brands and support our vision.

我們不能忽視當今挑戰的另一面，即顛覆價值住宅領域的機會。我們認識這位顧客。我們知道如何針對每種預算開發和策劃可實現的風格，我們擁有強大的合作夥伴，他們相信這些品牌並支持我們的願景。

We are intently focused on delivering results and returning to profitability.

我們專注於取得成果並恢復獲利能力。

That concludes our prepared remarks, and operator, we're now ready to take Q&A.

我們的準備好的演講到此結束，接線員，我們現在準備進行問答。

We will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。（操作員指示）

Jeremy Hamblin with Craig-Hallum Capital Group.

Craig-Hallum Capital Group 的 Jeremy Hamblin。

Thanks, good morning and thanks for taking the questions. I wanted to start by coming back to kind of the fundamental sales trends that you're seeing and just make sure if I could clarify. So it sounded like February was soft like we saw across most of the consumer sector, impacted by weather and a decline in consumer confidence. I just -- as you get to March and April, I wanted to make sure I understood. I think you said that same-store sales were roughly flat. Was that just for the retail stores or total same-store sales?

謝謝，早上好，謝謝您回答這些問題。首先我想回顧一下您所看到的基本銷售趨勢，並確保我是否可以澄清這一點。因此，聽起來二月就像我們看到的大多數消費領域一樣疲軟，受到天氣和消費者信心下降的影響。我只是——當你進入三月和四月時，我想確保我理解了。我認為您說過同店銷售額大致持平。這只是針對零售店還是整個同店銷售？

Yes. Jeremy, that comment was related to the brick-and-mortar channel. So flat for that combined period, March, April, but with a little more weakness later in that period is what we called out.

是的。傑里米，該評論與實體管道有關。因此，我們認為，3 月和 4 月的合併期間經濟表現平穩，但後期經濟表現略顯疲軟。

And then -- and you mentioned that e-com remains a headwind. Can you give me a sense of magnitude in terms of kind of how that's tracking here in Q1?

然後——您提到電子商務仍然是一個阻力。您能否為我介紹一下第一季的追蹤情況？

I think the way I would characterize that is just what you saw last year with the kind of difference between the channel performance that has continued.

我認為我對此的描述就像您去年所看到的，頻道表現之間的差異一直持續著。

Got it. Okay. And then I want to come back to the issue around tariffs and just see if we can understand, so I think the China exposure, roughly 70%. We've heard from other retailers that at this point in time that tariff rate is really kind of forcing companies to just halt taking new shipments product. I wanted to understand what Kirkland's Home was doing at this point in time. In terms of bringing in new inventory and that obviously is tied in a little bit to your borrowing capacity as well.

知道了。好的。然後我想回到關稅問題上，看看我們是否能夠理解，所以我認為中國的影響大約是 70%。我們從其他零售商聽說，目前關稅稅率確實迫使公司停止接收新產品。我想了解柯克蘭之家此時正在做什麼。就引入新庫存而言，這顯然也與您的借貸能力有一點關係。

But just understanding if you had kind of similar strategy of not taking or halting orders for the time being? And then how long -- if that's the case, how long before you would start to bring new goods in, whether that'd be from China or other sourcing partners?

但您是否有類似的策略，即暫時不接受或停止訂單？那麼，如果是這樣的話，多久之後你們才會開始引進新商品，無論是來自中國還是其他採購夥伴？

Jeremy, I'll start. So obviously, the overall tariff landscape is certainly a challenge, and particularly in China. Our teams are going through every PO at this moment and partnering with every vendor to discuss the best path whether holding goods, sharing costs of the tariff impact. And then obviously, from there, what that means to how we think about our pricing and discount strategy. We have been holding goods from China for several days now. We had a significant review this week, and we are going to begin very surgical sort of metering of goods that we believe are seasonally relevant and key to our peak selling seasons as we get later in the year.

傑里米，我先開始。因此，顯然，整體關稅格局無疑是一個挑戰，尤其是在中國。我們的團隊目前正在審查每一份採購訂單，並與每家供應商合作，討論最佳途徑，無論是持有貨物，還是分擔關稅影響的成本。顯然，從那裡開始，這對我們如何看待我們的定價和折扣策略意味著什麼。我們已經扣留來自中國的貨物好幾天了。本週我們進行了一次重要的審查，我們將開始對我們認為與季節相關且對我們今年稍後的銷售旺季至關重要的商品進行非常精確的計量。

But certainly, a fluid situation that we're monitoring day by day. Obviously, with our diversification and our sourcing strategy, we're more generous with what we're releasing from India and Vietnam and Cambodia and other countries that have a less significant impact from the latest tariff changes. But it is a fluid situation, and we are certainly similar to what you described, metering goods and holding goods to ensure that we can try to wait this out. Hopeful that there is some relief that makes the path in which we hurdle these tariffs easier for both us and our partners and the consumer.

但可以肯定的是，局勢瞬息萬變，我們正在每天監測。顯然，憑藉我們的多元化和採購策略，我們對來自印度、越南、柬埔寨和其他受最新關稅變化影響較小的國家的產品的供應更加慷慨。但這是一個不穩定的情況，我們的情況肯定與您描述的類似，計量貨物並持有貨物以確保我們可以嘗試等待。希望能夠有一些緩解措施，讓我們、我們的合作夥伴和消費者更輕鬆地跨越這些關稅。

Got it. And in terms of the -- where you are in the kind of calendar ordering cycle, the goods that you are holding or metering right now, is that kind of fall harvest? Is that already into the holiday season? Or can you give us a sense of the time line of goods that are being impacted or kind of withheld from being shipped at this point?

知道了。就您所處的日曆訂購週期而言，您現在持有或計量的貨物是秋季收穫嗎？已經進入假期了嗎？或者您能否向我們介紹目前受到影響或被阻止運輸的貨物的時間表？

Sure. I would prioritize it as how we harvest being really what we're tackling right now. And as you know, we set that product pretty early in the season and the peak selling season of it comes sort of third of the way into that season. So while we anticipate there could be some late or maybe not perfect set date, I do think that we still have a little bit of buffer and time to ensure that the goods that we do choose to bring in, still arrive at this point ahead of the peak selling season. So we have some cushion there. And then obviously, holiday, meaning Christmas orders, not shipping yet. But certainly, that's our next chunk to prioritize as we navigate getting through Halloween and Harvest.

當然。我會優先考慮如何收穫，這才是我們現在真正要解決的問題。如您所知，我們在季節初期就推出了該產品，其銷售旺季大約出現在季節的三分之一處。因此，儘管我們預計日期可能會晚一些或可能不完美，但我確實認為我們仍然有一點緩衝和時間來確保我們選擇進口的商品仍然能夠在銷售旺季之前到達。因此我們在這方面有一定的緩衝。然後顯然，假期，也就是聖誕節的訂單，還沒有發貨。但毫無疑問，這是我們度過萬聖節和豐收節時要優先考慮的下一個部分。

And then last one on the topic. If we aren't to get movement in that -- in the percentage that we have, what portion of goods do you feel like you can source from other locations just to have some product on shelves as we get into that fall harvest and into the traditional holiday season?

最後再來談談這個話題。如果我們沒有取得進展 - 在我們擁有的百分比中，您認為有多少比例的商品可以從其他地方採購，只是為了在秋季收穫和傳統假日季節時將一些產品擺上貨架？

Yes. We just sent our -- one of our head merchants overseas, and she's been sort of all across the globe over the past 19 days, moving orders where we can. And I would say the parts of our business that would be the most challenging are some of the elements of our seasonal business, things like floral and components of the holiday business. So if we were very aggressive in future years of how we rethink diversification, I would say we could probably get China import cut in half again. Obviously, pending the shifts and the capabilities, a lot about shifting to Cambodia right now, but we certainly feel like there's some gaps in what production could look like there.

是的。我們剛剛派遣了一位首席商務官前往海外，在過去的 19 天裡，她幾乎跑遍了世界各地，盡可能地運送訂單。我想說，我們業務中最具挑戰性的部分是季節性業務的一些元素，例如花卉和假日業務的組成部分。因此，如果我們在未來幾年積極地重新思考如何多樣化，我想我們可能會讓中國的進口量再次減少一半。顯然，在等待轉變和能力的同時，現在很多都轉移到了柬埔寨，但我們確實覺得那裡的生產情況可能存在一些差距。

So I think there's a decent portion of our floral or holiday business that could be impacted. What I'll say on the flip side of that is we are reengaging all of our domestic partners. We have been doing that intentionally for some time now as we've partnered with Beyond to think about these family of brands and what that would look like in terms of the assortment mix under those brands.

因此我認為我們的花卉或節日業務的很大一部分可能會受到影響。另一方面，我想說的是，我們正在與所有國內夥伴重新接觸。我們有意這樣做已經有一段時間了，因為我們與 Beyond 合作思考這些品牌家族，以及這些品牌下的商品組合會是什麼樣子。

And so we are working every day to make sure that we are top of mind with vendors on available domestic inventory and overstock inventory. I think as we all look at the retailers navigating this, there will certainly be some order cancellations and things like that. While that's not going to help us day 1, I do expect there to be excess available inventory in the market as we get later in the year.

因此，我們每天都在努力確保我們在國內可用庫存和積壓庫存方面是供應商最關心的問題。我認為，當我們所有人都看到零售商應對這一情況時，肯定會出現一些訂單取消之類的情況。雖然這在第一天不會對我們有幫助，但我確實預計，隨著今年稍後的到來，市場上會出現過剩的可用庫存。

So we are really looking at all options and okay with kind of shifting the, let's call it, format of the store and even how we think about messaging to a little more of a treasure hunt mentality even in the Kirkland store, if needed. And so we really think there's still a way to surprise and delight the customer with new product arriving every day, even if it doesn't flow as perfectly as we have planned.

因此，我們確實在考慮所有的選擇，如果有必要的話，我們可以改變商店的形式，甚至改變我們如何思考訊息傳遞，使其更具尋寶心態，即使在 Kirkland 商店也是如此。因此，我們確實認為，仍然有辦法透過每天推出新產品來給客戶帶來驚喜和愉悅，即使它不像我們計劃的那樣完美。

Got it. That's helpful color. And then just shifting gears here, I want to talk about the balance sheet for a second. And just to make sure I understand kind of the mechanics of where we are. I understand you're looking for a 5 -- a waiver of the kind of default and debt covenants, which sounds like that's going to come next week. But I think you said total debt ended February 1, $58.5 million and then about $44.1 million today. I just wanted to make sure, Mike, to understand the math of what that would imply for cash burn between kind of February 1 and May 1 ?

知道了。這是很有幫助的顏色。然後換個話題，我想談談資產負債表。只是為了確保我了解我們所處位置的機制。我知道您正在尋找 5——一種對違約和債務契約的豁免，聽起來這將在下週到來。但我認為您說過截至 2 月 1 日的總債務為 5850 萬美元，而今天約為 4410 萬美元。麥克，我只是想確保你理解這對 2 月 1 日到 5 月 1 日之間的現金消耗意味著什麼？

Yes. There's a lot of moving parts in there given that we closed the kind of second part of that original Beyond transaction a week after the end of the fiscal year. So that needs to be taken into account. And we're also including $5 million of letters of credit in that $44 million number. So we effectively paid down some of the debt with that transaction closing.

是的。由於我們在財政年度結束一周後就結束了原始 Beyond 交易的第二部分，因此其中有很多變動。所以需要考慮到這一點。在這 4,400 萬美元中，我們還包括了 500 萬美元的信用證。因此，隨著交易的結束，我們有效地償還了部分債務。

We did have some operating losses in the first quarter. So as we look forward this -- as you mentioned, this transaction that we're working close here in the short term will help the profile going into the period where we're building inventory. And as you recall, and we talk about often, the way our facility works is we're at the low point in terms of valuation on the inventory that's in the borrowing base.

我們在第一季確實遭遇了一些經營虧損。因此，正如您所提到的，我們期待這一點，短期內我們正在密切合作的這筆交易將有助於我們進入庫存建設期。正如您所記得的，我們經常談論的，我們的設施的運作方式是，就借貸基礎中的庫存估值而言，我們處於低點。

And as we get into July, August time frame when we're really building up inventory, the valuation of the inventory goes up, we have more availability at -- that's there for us. And that's how we see the buildup to the season playing out. And this transaction here is a key component of that. In addition to allowing us to try to make some progress on some of these store changes that Amy talked through in her remarks earlier.

當我們進入七月、八月的時間範圍時，我們真正開始建立庫存，庫存的估價上升，我們就有更多的可用庫存 - 這對我們來說是可行的。這就是我們所看到的賽季進程。而這筆交易就是其中的關鍵組成部分。除了允許我們嘗試在艾米之前的評論中談到的一些商店變革上取得一些進展之外。

Jeremy, I would add, we're really excited about this sort of pivot on our approach to store conversions. And when I describe them as capital-light, we believe that the current Kirkland store footprint with a fine changes and a slight mix of assortments and redesigning within our current fixtures is definitely an attainable solution for our Bed Bath & Beyond Home store and an Overstock store.

傑里米，我想補充一點，我們對這種商店轉化方法的轉變感到非常興奮。當我將它們描述為輕資本時，我們相信，對當前的 Kirkland 商店佈局進行細微的改變、稍微混合各種商品並在現有設備中進行重新設計，對於我們的 Bed Bath & Beyond Home 商店和 Overstock 商店來說絕對是一個可行的解決方案。

And so still want to as we progress and our partnership with Beyond support the growth of all 4 brands that I think both us and Beyond recognize consumer is right now, too, and a better approach to try to be disruptive in this value off-price business in the near term, which obviously also lightens the capital needs required to convert these stores. So we're excited and optimistic about what those could mean to us, and they definitely don't require the same capital outlay to convert those stores.

因此，隨著我們的進步以及我們與 Beyond 的合作，我們仍然希望支持所有 4 個品牌的成長，我認為我們和 Beyond 都認識到消費者現在也面臨著同樣的問題，因此，我們採取了一種更好的方法來嘗試在短期內顛覆這種低價業務，這顯然也減輕了轉換這些商店所需的資金需求。因此，我們對這些可能對我們意味著什麼感到興奮和樂觀，而且它們絕對不需要相同的資本支出來轉換這些商店。

A follow-up question on that point. In -- you mentioned Nashville for Bed Bath and then kind of 4 Overstock stores. Can you give us a sense of the timing on when you think those might be ready for the banner changeover?

關於這一點的後續問題。您提到了納許維爾的 Bed Bath 商店，然後是 4 家 Overstock 商店。您能否告訴我們您認為什麼時候可以準備好進行橫幅轉換？

The location mentioned in Nashville, we have already received alignment with the landlord to convert to that Kirkland's Home store. And so we are in the process of pricing signage and next week, we're actually walking that store to talk about the modification of the floor plan and categories that would begin to minimize and the introduction of bedroom and bathroom. So I would say in the very near future, expect that really capital-light scrappy conversion to happen in this Nashville location. And then as I shared on the call -- we shared on our February call that you hosted with us the review of our store fleet focused on profitability.

提到的納許維爾地點，我們已經與房東達成協議，將其改建為 Kirkland's Home 商店。因此，我們正在對標誌進行定價，下週，我們實際上會走進那家商店，討論平面圖的修改和將開始減少的類別，以及臥室和浴室的引入。因此我想說，在不久的將來，預計納許維爾地區將會發生真正輕資本的轉型。然後，正如我在電話中分享的那樣 - 我們在二月份的電話會議上分享了您與我們一起主持的對我們商店車隊的審查，重點是盈利能力。

And while that is still very important, we have various paths on how we will address unprofitable stores. So we really expanded that view to try to take a look at our entire footprint and all of the assets we have across our brands and the Beyond brands and really start to plot out what the future could and should look like.

雖然這仍然非常重要，但我們有多種方法來解決無利可圖的商店問題。因此，我們確實擴展了這一視野，試圖審視我們的整個足跡以及我們旗下品牌和 Beyond 品牌的所有資產，並真正開始規劃未來可能和應該是什麼樣子。

And so as we learn the Bed Bath & Beyond Home potential and really validate that assortment and the signage change and what that needs to feel like for the consumer when she goes into those stores and thinks of it as a sister brand of Kirkland, I think that's where we would really accelerate many conversions. And if you look at a market where we have currently 4, 6 or 8 Kirkland stores, those are areas where we really believe that there's great potential to diversify that brand offering in those spaces.

因此，當我們了解 Bed Bath & Beyond Home 的潛力並真正驗證其產品組合和標誌變化，以及當消費者走進這些商店並將其視為 Kirkland 的姊妹品牌時，消費者會有什麼樣的感受時，我認為這就是我們真正加速許多轉化的地方。如果你看一下我們目前擁有 4、6 或 8 家 Kirkland 商店的市場，我們確實相信在這些領域中，實現品牌多樣化的潛力巨大。

Got it thanks so much for the caller and best wishes.

明白了，非常感謝來電者並致以最良好的祝愿。

Thank you Jeremy.

謝謝你，傑瑞米。

This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節到此結束。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。