Vera Bradley Inc (VRA) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Vera Bradley First Quarter Conference Call for Fiscal 2024. (Operator Instructions).

早上好，女士們，先生們。謝謝你的支持。歡迎參加 Vera Bradley 2024 財年第一季度電話會議。（操作員說明）。

As a reminder, today's conference call is being recorded. I would now like to turn the call over to Mark Dely, Vera Bradley's Chief Administrative Officer. Please go ahead.

提醒一下，今天的電話會議正在錄音。我現在想將電話轉給維拉·布拉德利 (Vera Bradley) 的首席行政官馬克·戴利 (Mark Dely)。請繼續。

Good morning, and welcome, everyone. We'd like to thank you for joining us for today's call. Some of the statements made during our prepared remarks and in response to your questions may constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended.

早上好，歡迎大家。我們感謝您參加今天的電話會議。我們在準備好的發言中以及在回答您的問題時所做的一些陳述可能構成根據經修訂的 1995 年《私人證券訴訟改革法案》的安全港條款並在其含義範圍內做出的前瞻性陳述。

Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those that we expect. Please refer to today's press release and the company's most recent Form 10-K filed with the SEC for a discussion of known risks and uncertainties. Investors should not assume that the statements made during the call will remain operative at a later time. We undertake no obligation to update any information discussed on today's call.

此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與我們的預期存在重大差異。請參閱今天的新聞稿和公司向 SEC 提交的最新 10-K 表，了解已知風險和不確定性的討論。投資者不應假設電話會議期間所做的聲明將在以後繼續有效。我們沒有義務更新今天電話會議中討論的任何信息。

I would now like to turn the call over to Vera Bradley's CEO, Jackie Ardrey. Jackie?

我現在想將電話轉給維拉·布拉德利 (Vera Bradley) 的首席執行官傑基·阿德雷 (Jackie Ardrey)。傑基？

Thank you, Mark. Good morning, and thank you for joining us on today's call. Today, I'm joined by both John Enwright, our departing CFO; and Michael Schwindle, our newly appointed CFO.

謝謝你，馬克。早上好，感謝您參加今天的電話會議。今天，我們即將離任的首席財務官約翰·恩賴特 (John Enwright) 也加入了我的行列。以及我們新任命的首席財務官 Michael Schwindle。

Before we begin, I want to express my sincere thanks to John for his 9 years of service to Vera Bradley and his many contributions to our company, and we wish him all the best in the future. And we welcome Michael Schwindle to our team, who joined the company on May 8. He is a retail industry veteran with over 30 years of experience, including more than 15 years in CFO roles, delivering strong results through profit improvement and by providing innovative solutions.

在我們開始之前，我要向 John 表示衷心的感謝，感謝他為 Vera Bradley 服務了 9 年，並對我們公司做出了許多貢獻，並祝愿他未來一切順利。我們歡迎 Michael Schwindle 加入我們的團隊，他於 5 月 8 日加入公司。他是一位零售行業資深人士，擁有 30 多年的經驗，其中擔任首席財務官職位超過 15 年，通過提高利潤和提供創新解決方案取得了強勁的業績。

For the 3 years prior to joining our company, he served as CFO for accessory and jewelry retailer at Clair's. Previously, he held CFO roles at specialty retailers, Fleet Farm, Payless ShoeSource, Harry & David and Musician's Friend as well as other key financial roles at Home Depot and Limited Brands. You'll hear from both John and Michael later in today's call.

在加入我們公司之前的 3 年裡，他在 Clair's 擔任配飾和珠寶零售商的首席財務官。此前，他曾在專業零售商、Fleet Farm、Payless ShoeSource、Harry & David 和 Musician's Friend 擔任首席財務官，並在 Home Depot 和 Limited Brands 擔任其他重要財務職務。您將在今天的電話會議中聽到約翰和邁克爾的聲音。

Now let me turn to the quarter. We are very pleased the meaningful gross margin expansion and diligent expense control led to a significant year-over-year improvement in bottom line performance for the first quarter. On the revenue side, Vera Bradley factory stores experienced challenging traffic trends in March and April that led to weaker-than-expected performance for the quarter. This was partially offset, however, by several positive highlights in other areas of our business.

現在讓我談談本季度。我們非常高興的是，有意義的毛利率擴張和嚴格的費用控制導致第一季度淨利潤同比顯著改善。在收入方面，Vera Bradley 工廠店在 3 月和 4 月經歷了充滿挑戰的客流量趨勢，導致該季度的業績弱於預期。然而，我們業務其他領域的一些積極亮點部分抵消了這一影響。

First, we delivered our first positive quarterly revenue performance in 5 quarters at Pura Vida, primarily driven by noncomparable retail store sales. We also saw improved year-over-year sales trends in both our Pura Vida wholesale and e-commerce channels. Second, we delivered strong Vera Bradley e-commerce performance and solid Vera Bradley full-line store revenues. Vera Bradley Indirect revenue declined as expected due to a nonrecurring key account order that took place in last year's first quarter, but the underlying business remains healthy.

首先，我們在 Pura Vida 實現了 5 個季度以來首次實現積極的季度收入業績，這主要是由無與倫比的零售店銷售推動的。我們還看到 Pura Vida 批發和電子商務渠道的銷售趨勢同比有所改善。其次，我們實現了強勁的 Vera Bradley 電子商務業績和穩定的 Vera Bradley 全線商店收入。由於去年第一季度發生的非經常性大客戶訂單，維拉·布拉德利 (Vera Bradley) 間接收入按預期下降，但基礎業務仍然健康。

We are building a collaborative team with a mindset of generating long-term revenue increases, expanding gross margin and ensuring strong financial discipline and cost control, which we expect will drive long-term profitable growth. The team is working hard and taking strategic proactive steps to steadily grow Pura Vida's revenues and to reverse the trends in Vera Bradley's factory channel through the expansion of successfully tested targeting targeted marketing programs designed to drive traffic and average order size.

我們正在建立一支協作團隊，其理念是實現長期收入增長、擴大毛利率並確保強有力的財務紀律和成本控制，我們預計這將推動長期盈利增長。該團隊正在努力工作，採取積極主動的戰略措施，以穩定增長 Pura Vida 的收入，並通過擴大經過成功測試、旨在提高流量和平均訂單規模的目標營銷計劃來扭轉 Vera Bradley 工廠渠道的趨勢。

At Pura Vida, we have a solid organizational structure in place with newly promoted General Manager, Sujay Shah, leading the team with heightened discipline and focus on day-to-day execution and driving business results. Sujay was Pura Vida's former VP of Finance and is leading the team to return the e-commerce business to growth through utilization of the newly launched comprehensive customer data platform, diversification of the marketing program improving site navigation and focusing on customer retention.

在 Pura Vida，我們擁有堅實的組織結構，新晉升的總經理 Sujay Shah 以嚴格的紀律領導團隊，專注於日常執行和推動業務成果。 Sujay 是 Pura Vida 的前財務副總裁，他領導團隊通過利用新推出的綜合客戶數據平台、改善網站導航的多樣化營銷計劃以及注重客戶保留，使電子商務業務恢復增長。

On the product front, our custom bracelet program and new friendship packs are a big focus and are working, and we will continue to pursue high-profile collaborations like Sanrio, Harper Charms and Crumbl Cookies that are always fan favorites. The hard work on Project Restoration began in the first quarter, which is focused on 4 key pillars of the business for each brand, consumer, brand, product and channel, to drive the long-term profitable growth we expect.

在產品方面，我們的定製手環計劃和新的友誼包是一個重點，並且正在發揮作用，我們將繼續尋求高調的合作，例如一直深受粉絲喜愛的 Sanrio、Harper Charms 和 Crumbl Cookies。恢復項目的艱苦工作從第一季度開始，重點關注每個品牌的4個關鍵業務支柱：消費者、品牌、產品和渠道，以推動我們預期的長期盈利增長。

To support Project Restoration and lay the foundation for our success, we made additional corporate changes and announced incremental cost reductions including the elimination of approximately 25 corporate positions as part of an overall plan to further rightsize the expense structure of the company. Of course, Michael Schwindle's track record of driving profitable growth, along with his passion for retail and operational excellence will be instrumental as the company executes Project Restoration. We also made several organizational changes in the marketing, e-commerce, product design and product development areas that flattened and streamlined the organizational structure to improve execution, make faster decisions and provide support for the 4 pillars of Project Restoration. These most recent organizational changes and non-payroll expense reductions are expected to produce annualized savings of approximately $12 million on top of our fiscal 2023 cost reductions.

為了支持項目恢復並為我們的成功奠定基礎，我們進行了額外的公司變革，並宣布逐步削減成本，包括取消約 25 個公司職位，作為進一步調整公司費用結構的總體計劃的一部分。當然，Michael Schwindle 在推動利潤增長方面的記錄以及他對零售和卓越運營的熱情將在公司執行恢復項目時發揮重要作用。我們還在營銷、電子商務、產品設計和產品開發領域進行了多項組織變革，扁平化和精簡了組織結構，以提高執行力、更快地做出決策並為項目恢復的四大支柱提供支持。除了 2023 財年成本削減之外，這些最新的組織變革和非工資費用削減預計每年還可節省約 1200 萬美元。

Let me give you a bit more detail on Project Restoration's 4 key pillars and some of the initiatives we currently have underway. At Vera Bradley, for the consumer, we will focus on restoring brand relevancy, targeting casual and feminine 35- to 54-year-old women who value both fashion and function. For the brand, we will strategically market our distinctive and unique position as a feminine fashionable brand that connects with consumers on a deep emotional level. For product, we will refocus on core categories and items we are best at by innovating and expanding within our core products like travel and back to campus. We will elevate our colorful feminine heritage, keeping it distinctive but more trend relevant through updated print and design. We will also innovate into strategic adjacent lifestyle item introductions that make sense for our customers. As part of this, travel and travel accessories performed strongly across all channels in the first quarter and the travel category will continue to be a key focus of our go-forward assortment.

讓我向您詳細介紹項目恢復的 4 個關鍵支柱以及我們目前正在進行的一些舉措。在 Vera Bradley，對於消費者來說，我們將專注於恢復品牌相關性，瞄準注重時尚和功能的 35 至 54 歲休閒女性。對於該品牌，我們將戰略性地營銷我們作為女性時尚品牌的獨特地位，在深刻的情感層面上與消費者建立聯繫。在產品方面，我們將通過在旅行、返校等核心產品上進行創新和拓展，重新聚焦於我們最擅長的核心品類和項目。我們將提升我們豐富多彩的女性傳統，通過更新的印花和設計保持其獨特性，但更貼近潮流。我們還將創新推出對客戶有意義的戰略性鄰近生活方式產品。作為其中的一部分，旅行和旅行配件在第一季度在所有渠道中表現強勁，旅行類別將繼續成為我們未來產品類別的重點。

Additionally, our performance fabrics are trending well across all channels with the core customer being younger with a higher household income. This remains a big opportunity for us. Patterns will always be our signature, but coordinating solids continues to be a key opportunity for us as well. We will expand our solid collection this fall, including our foray bag into a small collection of leather goods. Finally, product collaborations are still an important part of our brand expression. Our Winnie the Pooh capsule was a huge success. Our first, Hello Kitty collaboration was just launched this month, and our NFL collection will be launched in August just in time for football season.

此外，我們的高性能面料在所有渠道中都表現良好，核心客戶更年輕，家庭收入更高。這對我們來說仍然是一個巨大的機會。圖案永遠是我們的標誌，但協調實體仍然是我們的一個關鍵機會。今年秋天，我們將擴大我們的實體系列，包括將我們的包袋擴展到小型皮革製品系列中。最後，產品合作仍然是我們品牌表達的重要組成部分。我們的小熊維尼膠囊取得了巨大成功。我們的首個 Hello Kitty 合作系列於本月剛剛推出，我們的 NFL 系列將於 8 月推出，正好趕上橄欖球賽季。

And then finally, for channel, we will accelerate our digital first focus and online presence build a balanced footprint that more clearly differentiates full line from factory stores and target and/or strengthen relationships with strategically aligned wholesale partners. As part of this, our recent site rebranding and navigation changes have been successful in reducing bounce rate and driving conversion and sales.

最後，對於渠道，我們將加速我們的數字第一重點和在線業務，建立一個平衡的足跡，更清晰地將全線產品與工廠店區分開來，並瞄準和/或加強與戰略一致的批發合作夥伴的關係。作為其中的一部分，我們最近的網站品牌重塑和導航更改成功地降低了跳出率並推動了轉化和銷售。

So turning to Pura Vida. For the consumer, we will sharpen our focus on the carefree 18- to 24-year old girl, who both those younger and older aspire to be. For the brand, we will recenter our brand ethos on living life to the fullest with marketing authentically sharing real moments, places and faces. Our [Loop] free campaign launched this month and will accentuate travel, adventure, friendship and freedom and will create engagement and excitement in our customer base for the entire summer.

所以轉向普拉維達。對於消費者，我們將更加關注無憂無慮的 18 至 24 歲女孩，無論年輕還是年長的女孩都渴望成為這樣的人。對於該品牌，我們將通過營銷真實地分享真實的時刻、地點和麵孔，重新塑造我們的品牌精神，讓生活更加充實。我們本月推出的 [Loop] 免費活動將強調旅行、冒險、友誼和自由，並將在整個夏天為我們的客戶群帶來參與度和興奮感。

For products, we will focus on delivering unique, fun, playful designs that are affordable and accessible with a dominant emphasis on bracelets and jewelry as well as other strategic adjacent categories. Some great examples of this are our new summer collection and our Harper Charms collection, which are both resonating with our customers. And then finally, for channel. We will have a strong focus on restoring e-commerce growth, which I just talked about, and growth of wholesale by pursuing larger, more strategic partnerships and expanding larger existing accounts and refining our existing store model.

對於產品，我們將專注於提供獨特、有趣、俏皮的設計，這些設計價格實惠且易於使用，主要側重於手鐲和珠寶以及其他戰略相鄰類別。這方面的一些很好的例子是我們的新夏季系列和 Harper Charms 系列，它們都引起了我們客戶的共鳴。最後，對於頻道。我們將重點關注我剛才談到的恢復電子商務增長，以及通過尋求更大、更具戰略性的合作夥伴關係、擴大更大的現有客戶以及完善我們現有的商店模式來恢復批發的增長。

Now let me turn the call over to John to review the financial results. John?

現在讓我把電話轉給約翰來審查財務業績。約翰？

Thanks, Jackie, and good morning. Let me go over a few highlights for the first quarter. The numbers I will discuss today are all non-GAAP and exclude the charges outlined in today's release. For a complete detail of items excluded from the non-GAAP numbers as well as a reconciliation of GAAP to non-GAAP numbers, please reference today's press release. Consolidated net revenues totaled $94.4 million compared to $98.5 million in the prior year first quarter. The consolidated net loss totaled $2.6 million or $0.09 per diluted share compared to $6 million or $0.18 per diluted share last year. Vera Bradley Direct segment revenues totaled $58.9 million, a 4.4% decrease from $61.6 million in the prior year.

謝謝，傑基，早上好。讓我回顧一下第一季度的一些亮點。我今天要討論的數字都是非公認會計準則的，不包括今天新聞稿中列出的費用。有關非 GAAP 數據中排除的項目的完整詳細信息以及 GAAP 與非 GAAP 數據的調節表，請參閱今天的新聞稿。合併淨收入總計 9,440 萬美元，而去年同期第一季度為 9,850 萬美元。合併淨虧損總計 260 萬美元，即稀釋後每股 0.09 美元，而去年為 600 萬美元，即稀釋後每股 0.18 美元。 Vera Bradley Direct 部門收入總計 5,890 萬美元，比上一年的 6,160 萬美元下降 4.4%。

Comparable sales declined 3.3%, primarily due to weakness in the factory channel, Jackie noted earlier. Vera Bradley Indirect segment revenues totaled $15.4 million, a 9.4% decrease from $17 million last year. Prior year revenues reflected a large onetime key account order that was not repeated this year. Pura Vida segment revenues totaled $20.1 million, a 1.2% increase over $19.8 million in the prior year first quarter, primarily driven by noncomparable retail store sales.

Jackie 早些時候指出，可比銷售額下降了 3.3%，主要是由於工廠渠道疲軟。 Vera Bradley 間接部門收入總計 1,540 萬美元，比去年的 1,700 萬美元下降 9.4%。去年的收入反映了一次大客戶訂單，今年沒有重複。 Pura Vida 部門的收入總計 2,010 萬美元，比去年第一季度的 1,980 萬美元增長 1.2%，這主要是由無可比性的零售店銷售推動的。

First quarter gross margin totaled $51.7 million or 54.8% of net revenues compared to $52.5 million or 53.3% of net revenues in the prior year. The current year gross margin rate was favorably impacted by lower year-over-year inbound and outbound freight expense and the sell-through of previously reserved inventory, partially offset by an increase in promotional activity.

第一季度毛利率總計 5,170 萬美元，占淨收入的 54.8%，而去年同期毛利率為 5,250 萬美元，占淨收入的 53.3%。本年度的毛利率受到進出境運費同比下降以及先前保留庫存的銷售的有利影響，但促銷活動的增加部分抵消了這一影響。

SG&A expenses totaled $55.6 million or 58.9% of net revenues compared to $59.4 million or 60.3% of net revenues in the prior year. Current year expenses were lower than the prior year, primarily due to cost reduction initiatives and the reduction in variable related expenses related to lower sales volumes. The company's first quarter consolidated operating loss totaled $3.5 million or 3.7% of net revenues compared to $6.7 million or 6.8% of net revenues in the prior year.

SG&A 費用總計 5,560 萬美元，占淨收入的 58.9%，而上一年為 5,940 萬美元，占淨收入的 60.3%。本年度的費用低於上年，主要是由於成本削減舉措以及與銷量下降相關的可變相關費用的減少。該公司第一季度綜合運營虧損總計 350 萬美元，占淨收入的 3.7%，而上年同期為 670 萬美元，占淨收入的 6.8%。

Now let's turn to the balance sheet. Quarter-end cash and cash equivalents totaled $25.3 million compared to $46.6 million at fiscal year-end. We had no borrowings on our $75 million credit facility at quarter end. Total quarter end inventory was $142.7 million compared to $161.8 million at the end of the first quarter of last year. During the quarter, we purchased 128,100 shares at an average price of $5.71 per share for an aggregate amount of approximately $732,000. $27 million remains under the $50 million repurchase authorization that expires in December 2024.

現在讓我們轉向資產負債表。季末現金和現金等價物總額為 2530 萬美元，而財年末為 4660 萬美元。截至季度末，我們的 7500 萬美元信貸額度中沒有任何借款。季末庫存總額為 1.427 億美元，而去年第一季度末的庫存為 1.618 億美元。本季度，我們以每股 5.71 美元的平均價格購買了 128,100 股股票，總金額約為 732,000 美元。 5000 萬美元的回購授權尚有 2700 萬美元，該授權將於 2024 年 12 月到期。

Now let me turn the call over to Michael to talk about the company's fiscal 2024 outlook.

現在讓我把電話轉給 Michael，談談公司 2024 財年的展望。

Thanks, John, and good morning, everyone. Based on first quarter performance, as both Jackie and John have discussed as well as our initiatives underway and the macro environment trends and expectations, we are revising our guidance for this fiscal year. As a result, all of our forward-looking guidance -- or as a reminder, rather, all of our forward-looking guidance is on a non-GAAP basis. For fiscal 2024, our updated guidance is as follows: we expect total revenues of $490 million to $510 million. As a reminder, revenues totaled $500 million in fiscal 2023, and we expect both Vera Bradley and Pura Vida revenues to be approximately flat on a year-over-year basis. We also expect gross margin rates of between 52.8% and 53.8%, which compares to 51.4% for last year.

謝謝約翰，大家早上好。根據傑基和約翰討論的第一季度業績以及我們正在進行的舉措以及宏觀環境趨勢和預期，我們正在修訂本財年的指導。因此，我們所有的前瞻性指導——或者提醒一下，我們所有的前瞻性指導都是基於非公認會計原則的。對於 2024 財年，我們更新的指導如下：我們預計總收入為 4.9 億至 5.1 億美元。需要提醒的是，2023 財年的收入總計為 5 億美元，我們預計 Vera Bradley 和 Pura Vida 的收入將同比基本持平。我們還預計毛利率將在 52.8% 至 53.8% 之間，而去年為 51.4%。

Our fiscal 2024 gross margin rate is expected to be favorably impacted by lower year-over-year freight expenses, cost reduction initiatives and the sell-through of previously reserved inventory which will be partially offset by an increase in promotional activity. Our SG&A expenses are expected to be between $237 million and $247 million compared to $245.3 million last year.

預計我們 2024 財年的毛利率將受到同比貨運費用降低、成本削減舉措以及先前保留庫存的銷售的有利影響，而促銷活動的增加將部分抵消這些影響。我們的 SG&A 費用預計在 2.37 億美元至 2.47 億美元之間，而去年為 2.453 億美元。

The expected year-over-year decline in SG&A expense is being driven by company-wide cost reduction initiatives, partially offset by restoring incentive compensation to more normalized levels and incremental marketing investment intended to accelerate customer file growth. This results in anticipated consolidated operating income of $24 million to $28 million compared to $12.3 million last year, and diluted EPS of $0.57 to $0.67 based on diluted weighted average shares outstanding of 30.7 million and an effective tax rate of approximately 28%. Our diluted EPS totaled $0.24 last year.

SG&A 費用的預期同比下降是由全公司範圍的成本削減舉措推動的，部分抵消了激勵薪酬恢復到更正常水平以及旨在加速客戶檔案增長的增量營銷投資。這導致預計綜合營業收入為 2400 萬美元至 2800 萬美元，而去年為 1230 萬美元，稀釋後每股收益為 0.57 美元至 0.67 美元（基於 3070 萬股稀釋加權平均流通股和約 28% 的有效稅率）。去年我們的攤薄後每股收益總計 0​​.24 美元。

We also expect net capital spending of approximately $5 million compared to $8.2 million last year, which reflects investments associated with Vera Bradley factory stores as well as technology and logistics enhancements. And as a result, our free cash flow is anticipated to be between $35 million and $40 million compared to a cash usage of $21.7 million in fiscal 2023.

我們還預計淨資本支出約為 500 萬美元，而去年為 820 萬美元，這反映了與 Vera Bradley 工廠店以及技術和物流增強相關的投資。因此，我們的自由現金流預計在 3500 萬美元至 4000 萬美元之間，而 2023 財年的現金使用量為 2170 萬美元。

So with that, operator, we'd like to open up the call to questions.

因此，接線員，我們想開始提問。

(Operator Instructions) And our first question today comes from Joe Gomes with Noble Capital.

（操作員說明）今天我們的第一個問題來自 Noble Capital 的 Joe Gomes。

So I wanted to start off. You talked about some lower traffic levels at Vera Bradley, I think, in March and April. Maybe you could give us a little more color or detail as to what was behind that.

所以我想開始。我想，您談到了維拉布拉德利 (Vera Bradley) 在三月和四月的交通量較低。也許你可以給我們更多的顏色或細節來了解其背後的原因。

Sure, Joe. So first, I want to say that the traffic challenges were limited really to the factory channel, and they were primarily in March. I think where we were seeing some other retailers report similar slowdowns.

當然，喬。首先，我想說，流量挑戰實際上僅限於工廠渠道，而且主要是在三月份。我想我們看到其他一些零售商也報告了類似的放緩。

And what we've done in this quarter is really look at some marketing programs that -- to drive more traffic to the REIT -- to those factory stores. And that's part of the reinvestment that we're going to make for the rest of the year is really we had some successful test results from some of those programs to help increase in targeted markets, and we're going to continue to deploy those programs. So -- but again, it was really just limited to the factory channel.

我們在本季度所做的實際上是研究一些營銷計劃，這些計劃旨在為房地產投資信託基金和工廠商店帶來更多流量。這是我們將在今年剩餘時間進行的再投資的一部分，我們確實從其中一些計劃中獲得了一些成功的測試結果，以幫助增加目標市場，我們將繼續部署這些計劃。所以——但同樣，它實際上僅限於工廠渠道。

Our full line traffic was strong throughout the quarter.

我們整個季度的全線客流量都很強勁。

And Joe, all I would add on to that, and I think, Jackie did a good job is to say that to the point it was March was really kind of the toughest month in the quarter, and we saw it rebound a little still down in April, but we saw a rebound in April better than March. And then in May, we've seen kind of that continued progression.

喬，我想補充一點，我認為，傑基做得很好，就是說，三月份確實是本季度最艱難的一個月，我們看到四月份的反彈仍然有所下降，但我們看到四月份的反彈比三月份更好。然後在五月份，我們看到了這種持續的進展。

Okay. And I don't know if you talked about this before, or not. Maybe you can kind of give us a little bit of size as to what that nonrecurring account order last year was. Just so we can kind of get a better idea of the year-over-year ex that performance? .

好的。我不知道你之前是否談過這個問題。也許您可以給我們一些關於去年的非經常性賬戶訂單的規模。只是為了讓我們更好地了解去年同期的表現？ 。

Yes. So indirect would have been down about 2%, excluding that onetime sale last year for the key account order. So it was a little bit over $1 million.

是的。因此，如果不包括去年大客戶訂單的一次性銷售，間接成本將下降約 2%。所以這個金額略高於 100 萬美元。

Okay. Great. And then one more, if I may, and I'll pass it along. Michael, congrats on joining the team. You've been there now a little over a month, early days, kind of maybe give us your first impressions and what are you kind of laying out is what your initial short-term goals would be here? .

好的。偉大的。如果可以的話，然後再寫一篇，我會把它傳遞給大家。邁克爾，恭喜您加入團隊。您已經在那里呆了一個多月了，早期的日子，也許可以給我們您的第一印象，您打算在這裡列出您最初的短期目標是什麼？ 。

Thank you, Joe. I appreciate the question. With my days and days of experience as Jackie and others say, so this is a tremendous brand. It's got a great solid foundation here, great customer base, great brand recognition, that gives a tremendous foundation from which to build upon. And so Jackie and I have talked a lot about that. I'm very excited about that.

謝謝你，喬。我很欣賞這個問題。正如傑基和其他人所說，根據我日復一日的經驗，這是一個巨大的品牌。它在這裡擁有堅實的基礎、龐大的客戶群、良好的品牌認知度，這為我們的發展奠定了巨大的基礎。傑基和我就此談了很多。我對此感到非常興奮。

Obviously, initially, there's a lot to learn here around all the different channels of the business as well as with the Pura Vida brand. And so I'm a bit vertical in the learning curve, as you might imagine, as I'm trying to just understand all of that. In the meantime, I've already been engaged pretty deeply in a lot of the cost initiatives that Jackie referred to earlier, making sure that we've got good controls around that and making sure we have good visibility to delivering those initiatives as well as gathering additional understanding of the different areas of the business.

顯然，最初，圍繞業務的所有不同渠道以及 Pura Vida 品牌，有很多東西需要學習。因此，正如你可能想像的那樣，我的學習曲線有點垂直，因為我試圖理解所有這些。與此同時，我已經深入參與了傑基之前提到的許多成本計劃，確保我們對此有良好的控制，並確保我們對交付這些計劃有良好的可見性，並收集對不同業務領域的更多了解。

I think one of the advantages I have been around lots of different retail organizations, I've had a lot of different operational experiences of our my 35 years, and that makes it a little bit faster, kind of running start for me to jump into different areas of operations and other things to kind of have a solid foundation at the onset and then look for the opportunities in the business.

我認為我的優勢之一是，我在許多不同的零售組織工作過，在 35 年的時間裡，我獲得了很多不同的運營經驗，這讓我可以更快地開始，進入不同的運營領域和其他事情，以便在一開始就打下堅實的基礎，然後尋找業務機會。

(Operator Instructions) And our next question will come from Eric Beder with SCC Research.

（操作員說明）我們的下一個問題將來自 SCC Research 的 Eric Beder。

Congratulations on the quarter. I know that this new management team joined -- it's a little bit tough in the near term to really change the product mix and flows. Obviously, you've done a great job in controlling what you can control on the expense side. When should we be thinking that we'll see like what you, Jackie or team envision the stores to fully be? Is that back half of this year? Or is that really into next year?

祝賀本季度。我知道這個新管理團隊的加入——短期內要真正改變產品組合和流程有點困難。顯然，您在控制費用方面做得很好。我們什麼時候應該考慮看到您、Jackie 或團隊所設想的商店的樣子？是今年下半年嗎？或者說真的到了明年嗎？

Yes, that's a great question, Eric. And as you said, it's tough to change product trajectory quickly. But I think the team has done a great job of really getting in and dissecting what's working and what's not working, especially as it relates to our future customer target. So we have -- one of the things we learned that I talked about today is just the balance of solids and print in our assortment and looking at the fabrics that we currently offer who they attract in terms of a customer level and a price point level. So you'll definitely see some product mix changes at the back half of the year, and then it will steadily increase as we get closer to the middle of next year.

是的，這是一個很好的問題，埃里克。正如你所說，快速改變產品軌跡是很困難的。但我認為該團隊在真正深入了解並剖析哪些有效、哪些無效方面做得非常出色，特別是因為它與我們未來的客戶目標相關。所以我們今天談到的一件事就是我們學到的一件事就是我們品種中純色和印花的平衡，並看看我們目前提供的面料在客戶水平和價格水平方面所吸引的人。因此，你肯定會在今年下半年看到一些產品組合的變化，然後隨著接近明年年中的臨近，它會穩步增加。

Okay. That makes sense. How should we be thinking about stores? I mean, obviously, the Pura Vida store openings that have happened last year helped historically been closing full-price stores opening outlets. What should we be thinking about this year and I guess, longer term?

好的。這就說得通了。我們應該如何考慮商店？我的意思是，很明顯，去年開設的 Pura Vida 商店幫助歷史上關閉了開設直銷店的全價商店。今年以及我想，從長遠來看，我們應該考慮什麼？

Yes. Another great question, Eric. And I would have to say that we are deep in that work. And that's part of the channel pillar of Project Restoration for both brands. our Pura Vida stores are working pretty well. So -- but it's really about right now pausing to be sure that can deliver the right strategic plan for the business. So that's the only reason that we haven't continued opening Pura Vida stores. But I think you'll hear more from us by the end of the year about our plans for stores.

是的。另一個很好的問題，埃里克。我不得不說我們正在深入開展這項工作。這是兩個品牌恢復項目渠道支柱的一部分。我們的 Pura Vida 商店經營得很好。所以，但現在真正需要停下來確保能夠為企業提供正確的戰略計劃。所以這是我們沒有繼續開設 Pura Vida 商店的唯一原因。但我認為，到今年年底，您會從我們這裡聽到更多關於我們的商店計劃的信息。

But it's just really important that, again, right now, we're focusing on the health of the of the overall portfolio and making sure that we're making the right strategic decisions for store openings for both brands.

但非常重要的是，我們現在再次關注整個產品組合的健康狀況，並確保我們為兩個品牌的門店開設做出正確的戰略決策。

Sure. And last question, what should we be thinking about in terms of inventory flows. Obviously, Q1, you brought the inventories down significantly. Is there opportunities to continue that throughout the rest of the year? .

當然。最後一個問題，我們應該在庫存流動方面考慮什麼。顯然，第一季度，您的庫存大幅下降。是否有機會在今年餘下的時間裡繼續這樣做？ 。

Eric, this is Michael. I'll jump in on that, and Jackie can add some more color. As you noted, we have seen some pretty good reductions on a year-over-year basis. It's roughly flat with the end of the year. We do expect to continue to see a downward trajectory in our overall inventory through the end of the year, something in the probably down 10-ish, maybe a little bit more than 10-ish percent by the time we get to the end of the year.

埃里克，這是邁克爾。我會介入，傑基可以添加更多顏色。正如您所指出的，我們看到同比出現了一些相當不錯的減少。與年底基本持平。我們確實預計到今年年底我們的整體庫存將繼續呈下降趨勢，到年底時可能會下降 10% 左右，甚至可能略高於 10% 左右。

And just a little color on that. We've been -- the company has been engaged in an exercise around SKU reduction. It's called the [SOR] project, and that has really contributed to kind of cutting off the tail of some of our unproductive inventory, and that's really contributing to some of the declines that you've seen. We're continuing that work and really I think you'll see the continued evidence as Michael mentioned, by -- within the rest of the year of those reductions.

只是一點點顏色。我們公司一直在開展圍繞減少 SKU 的活動。這就是所謂的 [SOR] 項目，這確實有助於切斷我們一些非生產性庫存的尾部，這確實導致了您所看到的一些下降。我們正在繼續這項工作，實際上，我認為您將在今年剩餘時間內看到邁克爾提到的持續證據。

Thank you. That does conclude the question-and-answer session. I'll now turn the conference back over to Jackie Ardrey for closing remarks.

謝謝。問答環節到此結束。現在我將把會議轉回傑基·阿德雷 (Jackie Ardrey) 致閉幕詞。

Thank you. In closing, we're committed to returning both of our brands to healthy top and bottom line growth and generating strong cash flow through Project Restoration which I believe will deliver value to our shareholders over the long term. This year, by focusing on stabilizing sales, expanding gross margin and controlling expenses, we believe we can, at a minimum, nearly double year-over-year operating income and more than double EPS.

謝謝。最後，我們致力於使我們的兩個品牌恢復健康的營收和利潤增長，並通過項目恢復產生強勁的現金流，我相信這將從長遠來看為我們的股東帶來價值。今年，通過重點穩定銷售、擴大毛利率、控制費用，我們相信至少可以實現營業收入同比增長近一倍、每股收益增長一倍以上。

We have an exciting future ahead. Thank you for joining us today, and we look forward to sharing our progress with you on our second quarter call on August 30.

我們有一個令人興奮的未來。感謝您今天加入我們，我們期待在 8 月 30 日的第二季度電話會議上與您分享我們的進展。

Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝。今天的會議到此結束。我們非常感謝您的參與。祝你有美好的一天。