Victoria's Secret & Co (VSCO) 2024 Q1 法說會逐字稿

Good morning. My name is Ivy and I will be your conference operator today. At this time, I'd like to welcome everyone to the Victoria's Secrets & Company first-quarter 2024 earnings conference call. Please be advised that today's conference is being recorded. (Operator Instructions)

早安.我的名字是艾薇 (Ivy)，今天我將擔任您的會議主持人。現在，我歡迎大家參加維多利亞的秘密公司 2024 年第一季財報電話會議。請注意，今天的會議正在錄音。（操作員指令）

I would now like to turn the call over to Mr. Kevin Wynk, Vice President of External Financial Reporting and Investor Relations at Victoria's Secrets & Company. Kevin, you may begin.

現在，我想將電話轉給維多利亞的秘密公司外部財務報告和投資者關係副總裁 Kevin Wynk 先生。凱文，你可以開始啦。

Thank you, Ivy. Good morning, and welcome to Victoria's Secret & Company's first quarter earnings conference call for the period ending May 4, 2024. As a matter of formality, I would like to remind you that any forward-looking statements we may make today are subject to our Safe Harbor statements found in our SEC filings and in our press release. Joining me on the call today is CEO, Mark Waters, and CFO, Tim Johnson. We are available today for up to 45 minutes to answer any questions.

謝謝你，艾薇。早安，歡迎參加維多利亞的秘密公司截至 2024 年 5 月 4 日的第一季財報電話會議。出於形式考慮，我想提醒您，我們今天做出的任何前瞻性陳述均受我們提交給美國證券交易委員會 (SEC) 的文件和新聞稿中的安全港聲明的約束。今天與我一起參加電話會議的還有執行長馬克沃特斯 (Mark Waters) 和財務長 Tim Johnson。我們今天最多會有 45 分鐘的時間來解答您的任何問題。

Certain results we discuss on the call today are adjusted results and exclude the impact of certain items described in our press release and our SEC filings. Reconciliations of these and other non-GAAP measures to the most comparable GAAP measures are included in our press release, our SEC filings, and the investor presentation posted on the Investors section of our website.

我們今天在電話會議上討論的某些結果是調整後的結果，不包括我們新聞稿和美國證券交易委員會文件中描述的某些項目的影響。這些和其他非 GAAP 指標與最具可比性的 GAAP 指標的對帳包含在我們的新聞稿、美國證券交易委員會 (SEC) 文件以及網站「投資者」部分發布的投資者介紹中。

Thanks, and now I'll turn the call over to Martin.

謝謝，現在我將電話轉給馬丁。

Thanks, Kevin, and good morning, everyone. I am pleased to report that first quarter results exceeded or met our expectations for the quarter on all key financial metrics. We experienced sequential improvement in quarterly sales trends for the third consecutive quarter in North America in both our stores and digital business for both Victoria's Secret and PINK brands. We delivered meaningful newness in merchandise and brand projection during the quarter, and our customers responded, particularly in April, which was our strongest month of the quarter.

謝謝，凱文，大家早安。我很高興地報告，第一季的業績所有關鍵財務指標均超過或達到了我們對本季的預期。在北美，維多利亞的秘密和 PINK 品牌的門市和數位業務的季度銷售趨勢連續第三個季度出現較上季改善。我們在本季推出了具有重大意義的新產品和品牌推廣，我們的客戶也做出了積極的反應，特別是在四月份，這是我們本季表現最強勁的一個月。

In North America, the improvement in trend was evident in both our store and digital businesses. From a stores perspective, we experienced significant improvement in traffic in April, meaningfully outperforming the balance of the mark. In terms of our digital business, the investments we've made to improve the customer experience resulted in digital sales performance outperforming stores. Traffic levels in our digital channels improved with April as the strongest month.

在北美，我們的實體店和數位業務都呈現出明顯的改善趨勢。從商店的角度來看，我們四月份的客流量顯著改善，遠遠超過了其他水平。在我們的數位業務方面，我們為改善客戶體驗所做的投資使得數位銷售業績優於實體店。我們的數位管道的流量水準有所提高，四月是流量最強勁的月份。

And our conversion continues to grow, driven by improving customer experience and positive customer receptivity to our improving merchandise assortment. From a market perspective, we are encouraged to see that sales trends in the intimates market in North America improved quarter-to-quarter, and we recognize a similar improvement in our intimates business performance, in particular, in March and April time frame. Our combined Victoria's Secret and PINK market share in the intimates category remained at about 20%.

在客戶體驗不斷改善和客戶對我們不斷改進的商品組合的積極接受的推動下，我們的轉換率持續成長。從市場角度來看，我們很高興看到北美貼身衣物市場的銷售趨勢逐季改善，我們發現貼身衣物業務表現也有類似的改善，尤其是在三月和四月。維多利亞的秘密和PINK在內衣領域的市佔率合計維持在20%左右。

We were also encouraged to see our digital market share in both bras and panties along with an increase with our sports bra market share. From a merchandise category perspective, Victoria's Secret Beauty business continues to be our best performing category, with year-over-year growth for the third consecutive quarter and was followed by improving performance in panties and bras. The combined intimates and beauty business for Victoria's Secret was about flat in the quarter compared to last year.

我們也很高興地看到，我們在胸罩和內褲的數位市場份額以及運動胸罩市場份額都在增加。從商品類別來看，維多利亞的秘密美容業務繼續成為我們表現最好的類別，連續第三個季度實現同比增長，其次是內褲和胸罩的表現有所提升。與去年同期相比，維多利亞的秘密的內衣和美容業務本季總體持平。

PINK experienced improving sales trends throughout the quarter, and April was the strongest month for the brand in the last several quarters with bras, sleep, and apparel as the best performing categories helping to offset a slow start to the quarter. The retail environment in North America was challenging and the promotional environment was very competitive. But importantly, our gross margin rate in the quarter was above last year and we were disciplined with traffic-driving offerings for our customers and managed our inventories well, which were down 5% compared to last year.

PINK 在整個季度的銷售趨勢都在改善，而 4 月是該品牌近幾個季度以來銷售表現最強勁的月份，其中胸罩、睡眠和服裝作為表現最好的類別，有助於抵消本季度開局緩慢的影響。北美的零售環境充滿挑戰，促銷環境競爭非常激烈。但重要的是，本季我們的毛利率高於去年同期，我們嚴格為客戶提供流量驅動產品，並管理好庫存，庫存與去年同期相比下降了 5%。

In addition to improving North American trends, our international business continues to have real momentum with net sales up 16% in the first quarter compared to last year. International system-wide retail sales increased low double digits in the first quarter and we continue to deliver profitable growth across stores and digital as compared to last year. International sales in the first quarter were driven by significant year-over-year growth in China and globally with our franchise and travel retail partners. We're optimistic about sales, profit, and growth opportunities for all of our partners around the world and remain on track with the growth plans we discussed at our Investor Day in October 2023.

除了北美趨勢改善之外，我們的國際業務繼續保持良好的發展勢頭，第一季的淨銷售額與去年相比增長了 16%。第一季度，國際系統零售額實現了低兩位數成長，與去年相比，我們在門市和數位通路繼續實現獲利成長。第一季的國際銷售得益於中國市場以及全球特許經營和旅遊零售合作夥伴的大幅同比增長。我們對全球所有合作夥伴的銷售、利潤和成長機會持樂觀態度，並將繼續執行我們在 2023 年 10 月投資者日討論的成長計畫。

Our adjusted SG&A rate in the quarter was better than our guidance, primarily due to disciplined and proactive expense management initiatives to drive incremental efficiency within our operating model. The combination of SG&A and buying and occupancy dollars were down slightly to last year. At our Investor Day in 2022, we committed to transforming the foundation of our company and established a $250 million 3-year goal, and we're on track to meet that goal and we believe we've demonstrated our commitment to continually focusing on efficiencies within our operating model and improving the cost structure of our business.

本季度，我們調整後的銷售、一般及行政開支率優於預期，這主要歸功於嚴謹、積極主動的費用管理舉措，從而推動了我們營運模式的效率提升。銷售、一般及行政費用以及購買和入住費用總額較去年同期略有下降。在 2022 年的投資者日上，我們致力於改變公司的基礎，並製定了 2.5 億美元的 3 年目標，我們有望實現這一目標，我們相信我們已經展示了我們持續關注營運模式效率和改善業務成本結構的承諾。

Aside from the financials, over the last 90 days, we've executed several key actions in support of our strategy and brand positioning for the long term. For example, we continue to develop our understanding of the Victoria's Secret and PINK customer through our multi-tender loyalty program, which has now been active for one year. We have 30 million members who drive 80% of our sales on a weekly basis. Through insights and data, we're focused on turning our understanding of our customer into world-class seamless customer experiences.

除了財務狀況之外，在過去的 90 天裡，我們還採取了幾項關鍵行動來支持我們的長期策略和品牌定位。例如，我們透過多投標忠誠度計劃不斷加深對維多利亞的秘密和PINK客戶的了解，該計劃現已實施一年。我們擁有 3000 萬會員，他們每週為我們帶來 80% 的銷售額。透過洞察和數據，我們致力於將對客戶的理解轉化為世界一流的無縫客戶體驗。

We continue to introduce newness in bras with the relaunch of our number one bra collection Body by Victoria with all new styles and our latest innovation offering lightweight design that smooths, shapes, and supports without an ounce of padding. In March, we launched a campaign focused on our top rating sports bra, Featherweight Max, available in a variety of new colorways and also featured our Flex Sports bra and Flex leggings with Invisible Lift Technology as well as our Elevate compression leggings.

我們繼續推出胸罩的新品，重新推出我們最暢銷的胸罩系列 Body by Victoria，該系列採用全新的款式和我們最新的創新技術，提供輕巧的設計，能夠撫平、塑形並支撐身體，而不需要一絲填充物。3 月份，我們發起了一場以我們的頂級運動胸罩 Featherweight Max 為重點的活動，該胸罩有多種新顏色可供選擇，同時還展示了我們的 Flex 運動胸罩和採用 Invisible Lift 技術的 Flex 緊身褲以及我們的 Elevate 壓縮緊身褲。

In April, we launched our Escape to Summer collection, featuring all new swim intimates and sun-ready pieces to wear day or night, as well as our iconic Archive Swim styles that are beloved by our customers. The new swim collection has been designed to celebrate our heritage in a fresh and modern way. As part of our commitment to expand our categories, we continue to introduce new swim products under the collaborative label, PINK terms Frankies Bikinis, that celebrates the iconic PINK brand reimagined through the lens of founder and Creative Director of Frankies, Francesca Aiello.

今年 4 月，我們推出了「Escape to Summer」系列，其中包括適合白天或晚上穿著的全新泳裝和防曬單品，以及深受顧客喜愛的標誌性 Archive Swim 款式。新款泳裝系列的設計旨在以一種新穎和現代的方式頌揚我們的傳統。作為我們擴大產品類別承諾的一部分，我們繼續推出合作品牌 PINK 旗下的 Frankies Bikinis 新款泳裝產品，透過 Frankies 創始人兼創意總監 Francesca Aiello 的視角重新構想，以慶祝標誌性的 PINK 品牌。

In May, we announced the Victoria's Secret Fashion Show is coming back in 2024. The show will deliver precisely what our customers have been asking for. The glamor, runway, fashion, fun, wings, entertainment, all through a powerful modern lens reflecting who we are today. We're thrilled to share this iconic property later this year. As we look forward, albeit with some caution around the broader retail environment in North America, we're planning the business in an appropriately conservative way in the near term, but are encouraged by April and the month of May was a solid start to the second quarter.

今年 5 月，我們宣布維多利亞的秘密時裝秀將於 2024 年回歸。這次展會將準確滿足我們客戶的要求。魅力、T台、時尚、樂趣、翅膀、娛樂，所有這些都透過強大的現代鏡頭反映了今天的我們。我們很高興能在今年稍後與大家分享這項標誌性的財產。展望未來，儘管我們對北美更廣泛的零售環境持謹慎態度，但我們仍在以適當保守的方式規劃短期業務，但 4 月份和 5 月份為第二季度帶來了良好的開端，這讓我們備受鼓舞。

We're optimistic about the positive signs we're seeing and remain focused on accelerating our core by leveraging our market leadership position and delivering on multiple initiatives to drive growth in our business, including product innovations to enhance Victoria's Secret brand, the reimagined merchandise strategy for PINK, new customer experience enhancements in our digital business, and of course, a multi-tender loyalty program.

我們對看到的積極跡象感到樂觀，並將繼續專注於通過利用我們的市場領導地位和實施多項舉措來加速我們的核心業務，以推動我們的業務增長，包括產品創新以提升維多利亞的秘密品牌，重新構想的PINK商品戰略，我們數字業務中的新客戶體驗增強，當然還有多招標忠誠度計劃。

For the second quarter of 2024, we're forecasting sales to decrease in the low single-digit range compared to the second quarter of 2023. This forecast reflects performance to start the quarter and tracks in line with the trajectory we've discussed for 2024, which assumes the broader intimates market in North America will remain promotional and could remain pressured throughout the first half. At this level of sales, we're forecasting second quarter adjusted operating income to be in the range of $30 million to $45 million.

對於 2024 年第二季度，我們預測銷售額將與 2023 年第二季相比下降個位數。該預測反映了本季初的表現，與我們討論的 2024 年軌跡一致，該軌跡假設北美更廣泛的貼身衣物市場將保持促銷狀態，並可能在整個上半年繼續承受壓力。在這種銷售水準下，我們預測第二季調整後的營業收入將在 3,000 萬美元至 4,500 萬美元之間。

For fiscal year 2024, we're reaffirming our forecast and expect sales to be about $6 billion or down low single digits to comparative 52 weeks from fiscal 2023. Our forecast assumes that trends improved throughout the back half of 2024. At this forecasted level of sales, we expect our adjusted operating income in 2024 to be about $250 million to $275 million.

對於 2024 財年，我們重申我們的預測，預計銷售額約為 60 億美元，或與 2023 財年的 52 週相比下降個位數。我們的預測假設 2024 年下半年趨勢會有所改善。依照這項預測的銷售水平，我們預計 2024 年的調整後營業收入將達到約 2.5 億美元至 2.75 億美元。

Lastly, as we've shared consistently inside and outside the business with the long-term health of the business in mind, we remain committed to our strategic priorities: firstly, to accelerate our core; second, to ignite growth; and thirdly, to transform the foundation of our company. As we look into the balance of the year, we're committed to the initiatives designed to leverage our market leadership position and unlock our opportunity to convert our significant cultural influence into long-term financial growth.

最後，正如我們在業務內部和外部不斷分享的那樣，我們著​​眼於業務的長期健康，我們仍然致力於我們的策略重點：首先，加速我們的核心；第二，激發成長；第三，轉變公司的基礎。展望今年，我們致力於實施旨在發揮我們的市場領導地位並釋放機會的舉措，將我們重要的文化影響力轉化為長期的財務成長。

Thank you. And that concludes our prepared comments. At this time, we'd be more than happy to take any questions you might have. Over to you, Ivy.

謝謝。這就是我們準備好的評論的結尾。目前，我們非常樂意解答您可能提出的任何問題。交給你了，艾薇。

(Operator Instructions) Simeon Siegel, BMO Capital Markets.

（操作員指示） Simeon Siegel，BMO 資本市場。

Thank you, everyone. Morning. I hope you're all doing well. Martin, you mentioned the fashion show returning. How are you thinking about marketing this year? Maybe speak to the work you did to come to this decision? Any change is signaling a shift in the marketing imagery messaging? Just anything you could speak to that -- and then just a more nuance. Did the April strength comment include PINK as well? Any thoughts how you're thinking about the progress of the stabilization of a turnaround of PINK. Thanks.

謝謝大家。早晨。我希望你們一切都好。馬丁，你提到了時裝秀的回歸。您覺得今年的行銷怎麼樣？也許可以談談您為做出這個決定所做的工作？任何變化都預示著行銷形象訊息的轉變嗎？您可以談論任何事情 — — 然後只是更細微的差別。四月的實力評論也包括PINK嗎？您對 PINK 轉型穩定進程有何看法？謝謝。

Yeah. Thanks, Simeon. Appreciate the question. I'll take the second one first. So yes, PINK performance definitely improved in April. April was the strongest month for PINK that we've seen in a long time, frankly, and it was driven by strength in new merchandise, particularly Wink bra, cinched corset. We had some success with flare bottoms. As I mentioned in the prepared remarks, the PINK and Frankies was big. Sports bra have been good. So across the board, PINK had a much improved April. And so we're encouraged by that, still a way to go in PINK. It is underperforming Victoria's. But we feel like we're getting there and making some progress.

是的。謝謝，西緬。我很感謝你提出這個問題。我先選擇第二個。因此，PINK 的表現在四月確實有所改善。坦白說，四月是我們長期以來看到的PINK表現最強勁的一個月，這得益於新商品的強勁增長，尤其是Wink 胸罩和束腰胸衣。我們在喇叭褲的製作上取得了一些成功。正如我在準備好的演講中提到的那樣，PINK 和 Frankies 很受歡迎。運動胸罩效果很好。整體來看，PINK 四月的表現大幅提升。我們對此感到鼓舞，PINK 還有很長的路要走。其表現不如維多利亞州。但我們感覺我們正在接近目標並取得一些進展。

Thank you for asking about the fashion show, one of my favorite subjects. We were delighted to announce in May that the show is coming back. We had a pretty incredible response to be honest, 1.8 billion media impressions in about two weeks. And I'm really encouraged to say that it was 98% positive. We don't always get positive to our post, but 98% positive. It was our number one video on TikTok this year. We picked up 130,000 new followers on TikTok following that was also very strong on Instagram.

感謝您詢問時裝秀，這是我最喜歡的話題之一。我們很高興在五月宣布該節目將回歸。說實話，我們的反應相當驚人，大約兩週的媒體曝光量達到 18 億次。我很高興地說，這個結果有 98% 是正面的。我們對自己的貼文的評價並不總是正面的，但 98% 都是正面的。這是我們今年在 TikTok 上排名第一的影片。我們在 TikTok 上獲得了 13 萬名新粉絲，在 Instagram 上我們的粉絲數量也非常可觀。

In terms of the marketing of the show and the positioning of the show, it's going to be -- as I said earlier, it's going to be all about Game, going to be feature of runway. It's going to be fashion, it's going to be fun, wings, entertainment, but through the modern lens of who we are today. So not exactly a repeat of who we used to be, but picking up on the moments that people enjoyed most about our fashion show historically. It will also be the kick-off to our holiday campaign, and that's important. It's not just top of funnel halo.

就展會的營銷和定位而言，正如我之前所說，它將完全圍繞著遊戲展開，成為時裝秀的特色。它將會是一種時尚，一種樂趣，一種翅膀，一種娛樂，但是透過現代的視角來看待我們今天的樣子。因此，我們並不是完全重複過去的時裝秀，而是重現人們在我們時裝秀歷史上最喜歡的時刻。這也將成為我們假期活動的啟動，這很重要。這不僅僅是漏斗頂部的光環。

Investment, it's directly linked to our sales performance going into the all-important holiday campaign and perhaps the biggest single element of difference will be that it will be merchandise driven. That's kind of the headline for the fashion show throughout the business. It's merchandise driven. It needs to focus our merchandise, not other people. It needs to be fun. It needs to be less aerial than we've been before. It needs to be commercial, mainstream and a great celebratory kick-off to the holiday season filled with Joy. So I hope that helps to give you some sense of what it is that we're trying to do, Simeon.

投資與我們在至關重要的假期活動的銷售表現直接相關，也許最大的不同因素在於它由商品驅動。這可以說是整個時裝秀的頭條新聞。它是由商品驅動的。它需要關注我們的商品，而不是其他人的商品。它必須要有趣。與以前相比，我們需要減少空中飛行。它需要具有商業性、主流性並且成為充滿歡樂的假期季節的一個盛大的慶祝開端。所以我希望這能幫助你了解我們正在做的事情，西緬。

That's great. Thanks, guys. Best luck for the rest of year.

那太棒了。謝謝大家。祝你今年餘下的時間好運。

Thank you.

謝謝。

Dana Telsey, Telsey Group.

達娜‧特爾西 (Dana Telsey)，特爾西集團 (Telsey Group)。

Hi, good morning, everyone. As you think about the swim category, how did the swim category perform? Where are you on the trajectory? And obviously, you've had some new product launches to like the reintegration of Body by Victoria, what did you see in intimates and panties? And then Store of the Future, how did that perform versus the base? Thank you.

大家早安。當您考慮游泳類別時，游泳類別的表現如何？您處在軌跡的哪個位置？顯然，您已經推出了一些新產品，例如 Body by Victoria 的重新整合，您對內衣和內褲有何看法？那麼未來商店與基礎商店相比表現如何？謝謝。

Thank you, Dana. I think I got at least four questions there. Let me -- I'll see if I can capture them all. Swim. So swim right now, if we take year-to-date, we're about flat to last year. However, we started late. We deliberately flowed swim later. So we were playing catch-up.

謝謝你，達娜。我想我至少有四個問題。讓我——我看看能否將它們全部捕獲。游泳。所以現在游泳，如果我們以年初至今的數據來看，我們與去年持平。然而，我們起步較晚。後來我們特意順流游泳。因此，我們正在奮力追趕。

I will tell you that April was terrific for swim. Swim has been difficult in the last couple of years across the board, which is hard to explain in the post-COVID era with people traveling more and going on vacation more. But it's been a tough couple of years, but I'm delighted that our recent performance on Swim, both in Victoria's and PINK driven by the Frankies merchandise has been really strong, so that's good.

我會告訴你四月非常適合游泳。近幾年，游泳一直都是件很困難的事，這在後疫情時代很難解釋，因為人們出行更多，度假也更多。雖然這幾年過得很艱難，但我很高興看到我們最近在 Swim 上的表現，無論是在維多利亞還是在 PINK，在 Frankies 商品的推動下都非常強勁，所以這很好。

Body by Victoria, very strong. I mean perhaps the most important bra launch we've had in the last three years in that it is our number one collection. And so relaunching the entire collection across the board with some really stunning new features focused on comfort. And every day wear was a really big moment for the brand, and that performed in line or ahead of our expectations. So that was good.

維多利亞的身體，非常強壯。我的意思是，這也許是我們過去三年來推出的最重要的胸罩系列，因為這是我們的頭號系列。因此，我們全面重新推出整個系列，並加入了一些真正令人驚嘆的、以舒適性為重點的新功能。日常穿著對於品牌來說非常重要，其表現符合甚至超出了我們的預期。這很好。

You asked about panties. Our panty business was very strong in April with about the strongest month we've seen in a while. It is a promotional category, as you know. We're not embarrassed to be promotional in panties far from it. It's a traffic driver for the business. We've worked very hard on the quality of our panties and there have been significant structural improvements to that business over the last six months or so.

您問的是內褲。四月份，我們的內褲生意非常強勁，是我們這段時間以來最強勁的一個月。如您所知，這是一個促銷類別。我們根本不會因為穿著內褲做廣告而感到尷尬。它是企業的流量驅動力。我們非常努力地提高內褲的質量，在過去六個月左右的時間裡，該業務取得了顯著的結構性改善。

It was one of the key priorities for Greg Unis and his team. When they took their leadership together about a year ago, one of the key focuses was to make the panty business as strong as it could be. So that's been a really big area of focus. And I might go to rest my voice, might go to Store of the Future with TJ, if that's okay.

這是 Greg Unis 和他的團隊的首要任務之一。大約一年前，當他們共同組建領導團隊時，其中一個主要關注點就是讓內褲業務盡可能強大。因此，這一直是一個非常受關注的領域。如果可以的話，我可能會去休息一下我的嗓子，可能會和 TJ 一起去未來商店。

Absolutely. Thanks for the question, Dana. We continue to be encouraged by Store of the Future performance in stores that have been recently remodeled. And in many of the stores that have been opened as new. We have not opened as many new stores yet in 2024. So we're really monitoring those stores that we touched, remodeled, or opened in 2023.

絕對地。謝謝你的提問，達娜。我們繼續對最近重新裝修的商店中「未來商店」的表現感到鼓舞。並且在許多新開業的商店中。到 2024 年，我們還沒有開設那麼多新店。因此，我們確實在監控我們在 2023 年接觸、改造或開設的那些商店。

We are confident that those stores are outperforming the fleet. We're confident that we're getting the work done and getting our messaging across and creating a better shopping experience for the customer and doing it at a lower cost. So our cost on Store of the Future continues to improve. In fact, we'll do as many -- we have as many activities this year or as many stores touched this year as last year, but do it for several million dollars less. So I feel very good about the progress that we're making with Store of the Future.

我們確信這些商店的表現優於其他商店。我們有信心完成工作，傳達我們的訊息，為顧客創造更好的購物體驗，而且成本更低。因此我們未來商店的成本持續改善。事實上，我們今年開展的活動和涉及的商店數量與去年一樣多，但花費卻減少了幾百萬美元。因此，我對我們在未來商店方面取得的進展感到非常滿意。

As we exit this year, we'll have about 17% or 18% of our fleet in North America in the new Store of the Future format and equally as impressive as we exit the year in our international business, we'll have about 30% of our stores in the new Store of the Future format. So a significant amount of work has been done well in a very short period of time. Thanks for the question.

今年結束時，我們在北美約有 17% 或 18% 的門市將採用新的「未來商店」模式；今年結束時，我們在國際業務中同樣令人印象深刻的是，我們將有約 30% 的門市採用新的「未來商店」模式。因此，在很短的時間內，大量工作已經完成。謝謝你的提問。

Lorraine Hutchinson, Bank of America.

美國銀行的洛林‧哈欽森 (Lorraine Hutchinson)。

Thanks. Good morning. TJ, I wanted to ask about the SG&A outperformance in the first quarter. And if these cost savings are something that we can count on as we start to model growth for the rest of the year?

謝謝。早安.TJ，我想問第一季銷售、一般及行政開支的優異表現。當我們開始為今年剩餘時間的成長做模型時，這些成本節約是否是我們可以依賴的？

Yeah. Thanks for the question, Lorraine. I think taking a big step back, really, we started on the cost journey probably 18 months or more ago, you may recall. So in 2022, really all four quarters of the year were down from a cost perspective. Front half of 2023 same story in our VS and PINK businesses. It really wasn't until the third quarter when we reimagined the fashion show with the world tour and brought that back, that costs were up slightly year-over-year. So we've been on the journey for an extended period of time.

是的。謝謝你的提問，洛林。我想退一步來說，實際上，您可能還記得，我們​​大概在 18 個月或更早之前就開始了成本之旅。因此，從成本角度來看，2022 年全年四個季度實際上都是下降的。2023 年上半年我們的 VS 和 PINK 業務也將面臨相同的情況。直到第三季度，我們重新構思了全球巡迴的時裝秀並將其恢復，成本才比去年同期略有上升。所以我們已經踏上漫長的旅程。

And the importance in mentioning that is we -- in our prepared comments mentioned that when we think about buying an occupancy along with SG&A dollars, they were down to last year. So really, that's the first quarter that's down on '23 to which is down on '22. So it's been a long runway of good work and really keeping costs in check has been somewhat cultural across the organization now.

提到這一點的重要性在於，我們在準備好的評論中提到，當我們考慮購買入住率以及銷售、一般和行政費用時，這些費用下降到了去年的水平。因此實際上，這是第一季度，比23年有所下降，比22年也有所下降。因此，這是一個長期的良好工作，現在整個組織都已經真正地將成本控製作為一種文化。

So I feel very comfortable that we'll continue to be very diligent on costs as we move through the balance of the year on both the SG&A line and on the buying and occupancy line. And this is separate or in addition to the great work that's been done by the merchant and product sourcing teams and in terms of the cost of goods sold initiatives and lowering average unit cost in partnership with our vendors. So we feel very comfortable about the trajectory of keeping costs in check and really setting the business up nicely for the improving trends that we expect in North America as the year goes on setting the business up nicely for a very strong flow through.

因此，我感到非常放心，我們將繼續在成本方面非常努力，因為我們將在全年的銷售、一般和行政費用以及購買和入住率方面保持平衡。這是獨立於或補充了商家和產品採購團隊所做的出色工作，以及在降低銷售成本舉措和與供應商合作降低平均單位成本方面所做的出色工作。因此，我們對控製成本的軌跡感到非常滿意，並且確實為業務做好了良好的準備，以適應我們預計今年北美市場的改善趨勢，為業務的強勁流通做好準備。

Thanks, TJ.

謝謝，TJ。

Thank you. And then if I could just follow up on the fashion show. As you think about the cost of that versus the cost of the world tour last year, is it similar in magnitude? Or would we see an increase or decrease in that third quarter marketing expense?

謝謝。然後我可以繼續關注時裝秀。當您將這次巡演的費用與去年世界巡迴的費用進行比較時，其數量是否相似？或者我們會看到第三季的行銷費用增加或減少？

Yeah. I think it's fair to assume that the fashion show cost this year will be lower than the world tour cost last year, again, keeping in mind the world tour span many countries, many different cultures, and a significant amount of work that probably in round numbers, 15 to 18 months to all come together. So it's fair to assume that if you just look at fashion show versus World Tour, the fashion show should come in at a lower cost. Having said that, it will come in at a lower cost.

是的。我認為可以合理地假設今年的時裝秀成本將低於去年的世界巡迴成本，再次考慮到世界巡迴演唱會跨越許多國家，許多不同的文化，並且需要大量的工作，大概需要 15 到 18 個月才能完成。因此，可以合理地推斷，如果只比較時裝秀和世界巡迴演唱會，時裝秀的成本應該會更低。話雖如此，成本會較低。

It will (laughter) --

它將（笑聲）——

Having said that, we also make trade-offs in our business. So I wouldn't want you to expect that all of those dollars, the range should flow through to the bottom line. We want to make sure that to Martin's point, we're supporting the fashion show with both top of funnel and lower funnel as the support for kicking off holiday and really launching holiday performance probably earlier than in the prior year in the third quarter. So it's not a dollar for dollar trade-off or per dollar flow-through just because one is lower than the other.

話雖如此，我們在經營上也會做出權衡。所以我不希望你期望所有這些美元，這些範圍都應該流到底線。我們希望確保如馬丁所說，我們同時透過漏斗頂部和漏斗底部來支持時裝秀，作為開啟假期的支持，並真正啟動假期表演，可能比去年第三季度更早。因此，這並不是一美元對一美元的權衡，也不是每美元的流通，只是因為一個比另一個低。

We'll be looking at the marketing spend in total, which we think still across the year will be down a little bit to last year, but we want to make sure we're doing everything we can to get the word out on some of the merchandise assortment changes, expansions and newness that we have coming. So it's a holistic picture from a marketing perspective.

我們將專注於整體行銷支出，我們認為全年的行銷支出仍將比去年略有下降，但我們希望確保盡一切努力宣傳我們即將推出的一些商品分類變化、擴展和新品。從行銷角度來看，這是一個整體情況。

Thank you.

謝謝。

Brooke Roach, Goldman Sachs.

高盛的布魯克·羅奇。

Good morning, and thank you for taking our question. Can you speak to the level of customer engagement you're seeing in response to promotions relative to the full price assortment? And as you do get these customer driving traffic initiatives, are they beginning to cross shop the rest of the store?

早安，感謝您回答我們的問題。您能否談談相對於全價商品，促銷活動的顧客參與度如何？當您採取這些措施吸引顧客時，顧客是否開始在商店的其他部分購物？

Thank you for that question. Our level of promotionality is up a nudge year-over-year, keeping pace with how we see the market in total. What we experience with promotions is that it's a good way to bring people into the business as a whole. And yes, they do cross shop. I won't say it doesn't happen, but it's rare for us to have customers who just come in, take advantage of the promotion and nothing else.

感謝您的提問。我們的促銷水準逐年提高，與我們對整個市場的看法保持同步。根據我們的經驗，促銷是吸引人們參與整個業務的好方法。是的，他們確實會進行交叉購物。我不是說這種事不會發生，但我們店裡很少會遇到只進店享受促銷優惠而不做其他事情的顧客。

Generally, the promotion drivers impact the box as a whole. They're a great way of bringing new customers into the file at any given time about 40% to 50% of the customers that are coming into the business are new or reconverted, meaning we haven't seen them in the last 18 months to two years. So promotions are an important part of the overall mix. I think that's probably about as much as I can say in response to that question.

一般來說，促銷驅動因素會對整個盒子產生影響。它們是吸引新客戶的絕佳方式，在任何時候，進入企業的客戶中大約有 40% 到 50% 是新客戶或回頭客，這意味著我們在過去的 18 個月到兩年內沒有見過他們。因此，促銷是整體組合的重要組成部分。我想這可能就是我對這個問題能說的全部答案了。

Yeah. I think in addition to that, Brooke, I think it's important to understand, we have a pretty rigorous test and control environment in the business. So we are testing stores that have promotion stores that don't have promotion to make sure that it's a good do and drives both sales and gross margin dollars. I think that's one point. And I think the second point is you're kind of following along in traveling stores, you probably noticed that we did use our beauty business and some promotions from a beauty perspective to help get people across the lease line.

是的。布魯克，我認為除此之外，重要的是要了解，我們的業務中有一個相當嚴格的測試和控制環境。因此，我們正在測試有促銷活動的商店和沒有促銷活動的商店，以確保促銷活動有效並能推動銷售額和毛利率的提高。我認為這是一方面。我認為第二點是，如果你關注流動商店，你可能會注意到，我們確實利用了我們的美容業務和一些從美容角度進行的促銷活動來幫助人們跨越租賃線。

And as Martin mentioned, particularly in the month of April, where we did see more promotions year-over-year. You saw the whole box get better. You saw all three lines of business. Both brands get better and perform as evidenced by -- PINK evidenced best month in several quarters. So it wasn't necessarily always the promotion in PINK as an example, but just the way that we're using the traffic driver mentality across the business to make the whole box rise.

正如馬丁所提到的，特別是在四月份，我們確實看到了同比增長的促銷活動。您會看到整個盒子變得更好了。您看到了所有三條業務線。兩個品牌的表現均有所改善，PINK 的表現在幾個季度中表現最佳。因此，這不一定總是以PINK中的促銷為例，而只是我們在整個業務中利用流量驅動思維來使整個盒子上升的方式。

Great. Thank you. And then one other question for you. Can you talk to the customer reaction to the marketing campaigns behind the sport business that you executed this quarter? How does that inform your plans for support in the back half of the year?

偉大的。謝謝。我還想問您一個問題。您能談談客戶對您本季執行的體育業務行銷活動的反應嗎？這對您下半年的支援計畫有何指導意義？

Yeah. Thank you for that question about sport. The response to us being in the sports business has been overwhelmingly positive. We see that in two ways, maybe three ways. First, our sales compared to prior year are up significantly, very significantly, particularly driven by sports price. Secondly, the response to social media and to our marketing is very positive amongst the most positive that we have across the system. And the third is a bit, like I said, with promotions, the halo that it has to the business as a whole that part of our strategic intent is to be in broader categories that give more reasons for the customer to come to us.

是的。感謝您提出關於體育的問題。我們涉足體育產業所獲得的反應非常正面。我們從兩個甚至三個面向來看這個問題。首先，我們的銷售額與去年相比大幅成長，非常大幅成長，尤其是受體育用品價格的推動。其次，社群媒體和我們的行銷的反應非常積極，是整個系統中最積極的反響之一。第三，就像我說的，透過促銷，它對整個業務具有光環，我們的策略意圖之一是涵蓋更廣泛的類別，為客戶提供更多理由來找我們。

And as we know, sport is a well-shopped category that we were wrong to have exited wrong to have got out of that business. It's taken us, frankly, longer to get back into the sport business than we would have liked. But we're now doing still with real conviction. And what we're doing right now informs what we will do during July and August as we put even more conviction behind the sports part of our business.

我們知道，體育是一個很受追捧的行業，我們退出這個行業是錯的。坦白說，我們重返體育界的時間比我們希望的要長。但現在我們仍然滿懷信心地這麼做。我們現在所做的事情決定了我們7月和8月要做的事情，因為我們對體育業務更有信心。

I will say that we've seen a market share uptick already in sports bras, which to see an instant reaction like that is particularly encouraging. So more of the same for the balance of the year, I think, would be the answer.

我想說的是，我們已經看到運動胸罩的市佔率上升，看到這樣的即時反應尤其令人鼓舞。因此，我認為，答案就是在今年餘下的時間裡採取更多相同的措施。

Great. Thank you so much. I'll pass the line.

偉大的。太感謝了。我會通過這條線。

Ike Boruchow, Wells Fargo.

富國銀行的艾克·博魯喬（Ike Boruchow）。

Hey, morning, everyone. I just wanted to understand a little bit more the promotional environment is TJ, can you just talk about the intensity you're seeing? And I'm really most interested in what's embedded in your fan both for the second quarter and remainder of the year. Are you planning to pull back on promo at any time? Is that baked into your guide? Or again, just trying to try to understand how you're kind of level setting right? Thank you.

大家早安。我只是想進一步了解 TJ 的促銷環境，你能談談你所看到的強度嗎？我最感興趣的是第二季以及今年剩餘時間內你的風扇的情況。您是否計劃隨時停止促銷？這已經寫在你的指南裡了嗎？或者，只是想了解你的水平設定方式對嗎？謝謝。

Yes. Thanks for the question, Mike. I know there's been a lot written and a lot of attention paid to promotions across retail. I think from our perspective, the promotion level year-over-year in first quarter did impact our gross margin rate slightly and was effective in the business as evidenced by driving past our original guidance from a sales perspective and the strength across both brands as we mentioned. So we're confident it was a good due in first quarter.

是的。謝謝你的提問，麥克。我知道已經有很多文章寫到了零售業的促銷活動，並且引起了很多關注。我認為從我們的角度來看，第一季的同比促銷水平確實對我們的毛利率產生了輕微影響，但對業務是有效的，這一點從銷售角度超出了我們最初的預期，以及我們提到的兩個品牌的強勁表現就可以看出。因此我們相信第一季的業績表現良好。

As we move through second and third quarter, we start to anniversary what we thought was a more promotional environment last year. So our year-over-year compares probably won't be as noticeable on the gross margin rate as we move forward as they were in the first quarter. Having said that, I don't think it's appropriate for us yet to start to think about letting up on promotion. And the reason I say that is as we move into the fall season, I think it's fair to assume the environment could continue to be challenging from a consumer standpoint. We're going to head into a national election cycle, which, again, from a media standpoint and how we break through, we'll continue to challenge the business or challenge retail in general.

隨著我們進入第二季和第三季度，我們開始紀念去年我們認為的更具促銷性的環境。因此，隨著毛利率的同比變化，我們的毛利率可能不會像第一季那麼明顯。話雖如此，我認為我們現在還不宜開始考慮放棄推廣。我這樣說的原因是，隨著我們進入秋季，我認為可以合理地假設從消費者的角度來看環境可能會繼續充滿挑戰。我們即將進入全國選舉週期，再次從媒體的角度以及我們如何取得突破的角度來看，我們將繼續挑戰商業或挑戰零售業。

And then as we move into the fourth quarter, as you know, we had the shortest time in our calendar this year between Thanksgiving and Christmas. So the shopping days and the importance of each day will be more and more compressed. So it would be difficult to imagine taking our foot off of the gas on promotions in this type of environment that we expect going forward. Having said that, as I mentioned, we feel very comfortable that what we're doing is driving incremental sales and incremental gross margin dollars.

然後，當我們進入第四季度時，如你所知，今年感恩節和聖誕節之間的時間間隔是日曆上最短的。所以購物的日子和每一天的重要性會越來越壓縮。因此，在我們預期的未來這種環境下，我們很難想像會停止促銷。話雖如此，正如我所提到的那樣，我們感到非常舒服，我們正在做的事情正在推動增量銷售和增量毛利率。

We've tested it -- we feel very comfortable in how we're managing inventory as evidenced by delivering our inventory guidance in the first quarter. And I think what's in front of us and what we're more hopeful and more focused on is just as the newness grows, the newness should only grow from here from a merchandising up. And what does that suggest from a pricing and promotional standpoint is something we're going to learn also. So we feel very comfortable about how we're managing the margin and inventory in the business.

我們已經對其進行了測試——我們對我們的庫存管理方式非常滿意，這從我們在第一季提供的庫存指導中可以看出。我認為，我們面臨的以及我們更充滿希望和關注的是，隨著新鮮事物的增長，新事物應該從商品化開始不斷增長。從定價和促銷的角度來看這意味著什麼也是我們要了解的。因此，我們對業務利潤和庫存的管理方式感到非常滿意。

Thank you.

謝謝。

Lauren Slade, Evercore ISI.

勞倫·斯萊德（Lauren Slade），Evercore ISI。

Hey, good morning. Thanks for taking my question here. I was wondering if you can give a little bit of a deeper diagnostic on why the international business is outperforming so significantly here, especially in China. I know there's some key structural differences. Is this something structural? Or are there lessons that you could learn from and apply to the US?

嘿，早安。感謝您在這裡回答我的問題。我想知道您是否可以更深入地分析為什麼我們的國際業務在這裡，尤其是在中國，表現如此出色。我知道存在一些關鍵的結構差異。這是結構性的東西嗎？或是有哪些經驗教訓你可以學習並應用到美國？

Yeah. Thank you for that question. Maybe I'll give some context to international as a whole and then go a little deeper on China. So our international business continues to be extremely strong. It has been strong for a decade, but for two markets where we had challenges. One was the UK, one was China. When this management team took over, we changed the structure of both of those businesses to eradicate the losses that we were seeing. And so the business has gone from strength to strength in all five areas of the business.

是的。感謝您的提問。也許我會先介紹國際整體情況，然後再更深入地談談中國。因此我們的國際業務持續保持強勁勢頭。十年來它一直保持強勁勢頭，但在兩個市場我們仍面臨挑戰。一個是英國，一個是中國。當這個管理團隊接手時，我們改變了這兩個業務的結構，以消除我們所看到的損失。因此，公司五個業務領域的業務都不斷發展壯大。

We're now at nearly 550 stores around the world. We have more digital sites than I can remember to count, multiple tens of digital sites, and we've seen excellent growth in retail sales and system-wide sales. I think we're in 65 countries with a physical presence and we're shipping to over 200 countries. And we're super excited about the response that we see just a couple of weeks ago, we launched a new store in Madrid, fantastic response. So just about all around the world wherever the brand is popping up, we're seeing strong performance. We're also seeing strong performance on a like-for-like basis, which is very encouraging. So we will continue to focus on both physical retail and digital, about 90 new stores this year through our partner network.

我們目前在全球有近 550 家門市。我們擁有的數位站點多得數不清，有幾十個，而且我們的零售額和全系統銷售額都實現了顯著增長。我想我們在 65 個國家設有實體業務，並且我們的產品出貨到 200 多個國家。我們對幾週前看到的反應感到非常興奮，我們在馬德里開了一家新店，反應非常好。因此，幾乎在世界各地，無論該品牌出現在哪裡，我們都能看到強勁的表現。我們也看到同類產品的表現強勁，這非常令人鼓舞。因此，我們將繼續專注於實體零售和數位零售，今年將透過我們的合作夥伴網路開設約 90 家新店。

You're right to point out China as being very important. The big structural change that we made there, which was a fantastic decision was to partner with Regina Miracle, experts in China, experts in intimate apparel, long-standing partners of ours. We've been in business with them for over two decades. And we're fantastic partners, both in the domestic business and in the international business. That was the biggest single change.

您指出中國非常重要，這是正確的。我們所做的重大結構性變革是一個絕佳的決定，那就是與 Regina Miracle 合作，他們是中國內衣領域的專家，也是我們的長期合作夥伴。我們與他們合作了二十多年。無論在國內業務或國際業務方面，我們都是優秀的合作夥伴。這是最大的改變。

We market the brand around the world in an elevated way. We find that we can be slightly less promotional in our international markets. We command a higher retail price than we do in the domestic market and generally, working from a base of low single-digit share is much easier than working from a base of 20% or 25% market share. So that's a big thing to remember in the difference.

我們以高端的方式在世界各地推銷該品牌。我們發現，我們在國際市場上的促銷力道可以稍微減弱一些。我們的零售價比國內市場要高，而且一般來說，以低個位數份額為基礎開展工作比以 20% 或 25% 的市場份額為基礎開展工作要容易得多。所以，這是需要記住的一件大事。

The overall presentation of the brand is substantially similar. And I think to the untrained eye, most people would say it's exactly the same. But under the covers, there are some important differences, particularly around size curve, around mix of merchandise, some color variations some category focus. We have less of a focus on PINK in our international markets, more of a focus on Glamour. So there are definitely differences, and that team is now 15 years old with many members of that team being there from the beginning. And so very skilled, very practiced in how to market internationally and the team just gets better and better. So a big shoutout to them and the China team for everything they're doing.

品牌整體呈現大致相似。我認為，在外行人看來，大多數人都會說它們一模一樣。但在表面之下，存在一些重要的差異，特別是在尺寸曲線、商品組合、一些顏色變化和一些類別重點方面。在國際市場上，我們較少關注粉紅色，而更多關注魅力。所以肯定存在差異，而且該團隊現已成立 15 年了，其中許多成員從一開始就在那裡。而且非常熟練，非常熟悉如何進行國際行銷，團隊也變得越來越好。因此，我要向他們和中國團隊致以最誠摯的謝意，感謝他們所做的一切。

I'd be remiss not to mention the UK as well, where our partner, Next, is a fantastic partner. They know that market better than we do. They buy real estate better than we do. And we've moved that business from being loss making to be nicely profitable. We had to close our flagship store on Bond Street is because the lease was up about 13 years of occupation, and we'll be delighted to open a new flagship store in London next year. So that's an exciting milestone for the brand. So all in all, international is a very, very positive story. Thank you for asking.

我還要提到英國，我們的合作夥伴 Next 是一家非常出色的合作夥伴。他們比我們更了解那個市場。他們購買房地產比我們更好。我們已將該業務從虧損狀態轉變為獲利狀態。我們不得不關閉邦德街的旗艦店，因為租約 13 年已到期，我們很高興明年能在倫敦開設一家新的旗艦店。這對該品牌來說是一個令人興奮的里程碑。總的來說，國際上的情況非常非常正面。謝謝你的提問。

Thanks, Martin. That's really useful color. And then as my follow-up, you talked a little bit in the prepared remarks about utilizing the new customer data you're getting from the multi-tender loyalty rollout. What's in the hopper there in terms of how we may see leverage those insights?

謝謝，馬丁。這確實是很實用的顏色。然後作為我的後續問題，您在準備好的評論中談到了利用從多投標忠誠度推出中獲得的新客戶數據。就我們如何利用這些見解而言，那裡有什麼潛力呢？

Yeah. So good question on insights. Chris Rupp joined our business about 18 months ago. And her primary focus is in the area of insights data and customer experience. And we've made incredible progress across each of those areas. I mean if I take digital enhancements, which is adjacent to data, since the beginning of Q1 we've had 75 new releases that are customer facing. We've had 45 new releases that are non-customer facing. So more releases, more activity than we've ever had.

是的。關於見解的問題問得真好。大約 18 個月前，Chris Rupp 加入了我們公司。她的主要關注點是洞察數據和客戶體驗領域。我們在每個領域都取得了令人難以置信的進步。我的意思是，如果我採取與資料相鄰的數位增強功能，自第一季初以來，我們已經發布了 75 個面向客戶的新產品。我們已發布了 45 個非面向客戶的新版本。因此，我們發布的版本比以往更多，活動也比以往更多。

And all of that is generating important insights for our customer and a stronger digital performance, which is driving our share in the digital environment, which is particularly interesting because most of our competition -- and all of the new competition that we've seen over the last five years is in the digital marketplace. So we're encouraged by that. Specifically on loyalty, as you know, we moved from a credit card arrangement to a multi-tender arrangement. And that's built our business to about 80% of our sales coming through that device and something like 30 million customers taking advantage of that, which gives us a tremendous platform on which to learn. I would say we're at the beginning of the beginning of how we market to that audience on a personalized basis but the future of marketing in this country and around the world will be personalized.

所有這些都為我們的客戶提供了重要的見解和更強大的數位化表現，從而推動了我們在數位環境中的份額，這尤其有趣，因為我們的大多數競爭對手——以及過去五年中我們看到的所有新競爭對手都在數位市場上。因此我們對此感到鼓舞。具體到忠誠度方面，如您所知，我們從信用卡安排轉變為多投標安排。這使得我們約 80% 的銷售額都來自該設備，大約有 3,000 萬名客戶利用了該設備，這為我們提供了一個龐大的學習平台。我想說，我們才剛開始以個人化的方式向受眾進行行銷，但未來這個國家乃至全世界的行銷將是個人化的。

And so having a very strong data -- having a relationship with customers where you understand their preferences informs the opportunity to give them a curated and individual experience. And that's the new frontier for us. As I say, we're at the beginning of the beginning. And so I see upside in that arena. I'm very grateful that we have the team that we have working on it because we've significantly enhanced our capability in that area in the last 18 months or so.

因此，擁有非常強大的數據——與客戶建立關係，了解他們的偏好，就有機會為他們提供精心策劃的個人化體驗。這對我們來說是一個新領域。正如我所說，我們才剛剛開始。因此我看到了該領域的優勢。我非常感謝我們擁有一支致力於此的團隊，因為在過去 18 個月左右的時間裡，我們在該領域的能力得到了顯著增強。

Thanks, Martin. Good luck.

謝謝，馬丁。祝你好運。

Thank you.

謝謝。

Jonna Kim, TD Cowen.

喬娜金（Jonna Kim），TD Cowen。

Thank you for taking my question. It was nice to see (technical difficulty). So what's your expectation for the remainder for that particular business? And also would love to get any update on the Adore Me business, how that's tracking versus your expectations? Thank you so much.

感謝您回答我的問題。很高興看到（技術難度）。那麼您對該特定業務的剩餘預期是什麼？並且還想了解 Adore Me 業務的最新進展，與你的預期相比進展如何？太感謝了。

Yeah. We got the Adore Me question, but we didn't get the first question. Sorry, could you repeat the first question?

是的。我們收到了「Adore Me」的問題，但沒有收到第一個問題。抱歉，您能重複第一個問題嗎？

Yeah. Just on PINK business, you've seen improvement there. What's your expectation for the remainder of the year? How that business will evolve?

是的。僅就 PINK 業務而言，您已經看到了改善。您對今年剩餘時間有何期望？該業務將如何發展？

Sorry, none of us got which business you're talking about. Would you say it again slowly, what business you're talking about?

抱歉，我們都不知道您在說什麼業務。你能慢慢再說一次嗎，你在說什麼事？

It's the PINK business, PINK.

這是PINK事業，PINK。

PINK. Got it. Okay. I'll take the Adore Me question first. So yeah, Adore Me is going well. For the year, we're on track for growth in sales and operating income. We continue to work very closely with the team on technology and marketing synergies.

粉紅色的。知道了。好的。我先回答關於「愛我」的問題。是的，Adore Me 進展順利。今年我們的銷售額和營業收入可望成長。我們將繼續與該團隊在技術和行銷協同方面密切合作。

A reminder, we set out at the beginning of the year to use three synergies. The first was to sell Adore Me on victoriasecret.com and to do so in a drop-ship environment so we don't carry inventory, done. Very strong performance in that arena, adds to our curated marketplace, gives us broader size inclusivity than we've had before, gives us access to different kind of fashion and price point than we've had before. So pleased with that.

提醒一下，我們在年初就制定了三種綜效。第一個是在 victoriasecret.com 上銷售 Adore Me，並且採用直銷環境進行銷售，這樣我們就不會存貨，就這樣。在該領域的表現非常強勁，擴大了我們的精選市場，為我們提供了比以前更廣泛的尺寸包容性，使我們能夠接觸到比以前不同類型的時尚和價格點。我對此非常高興。

Second synergy was around Try-On at Home, very important marketing initiative. And I should have mentioned that when we were talking about data in the previous question. we have been in test mode for the last couple of months on Try-On at Home that we hope that that will go live later this year, will be a very, very exciting and interesting marketing innovation, driven off of the Adore Me platform.

第二個協同作用是圍繞「在家試穿」這一非常重要的行銷舉措。當我們在上一個問題中討論數據時我應該提到這一點。在過去的幾個月裡，我們一直在對 Try-On at Home 進行測試，希望它能在今年稍後正式上線，這將是一項非常非常令人興奮且有趣的行銷創新，由 Adore Me 平台推動。

And then thirdly, other loyalty-based features like subscription member services, which will come in 2025. So whether it's in the core stand-alone business where we're seeing good performance from Adore Me and from Dailylook or whether it's on the technology side, we're very pleased with the way that things are going. And as we get to the end of the year, we'll anniversary the second year of our ownership of that business.

第三，其他基於忠誠度的功能，如訂閱會員服務，將於 2025 年推出。因此，無論是在核心獨立業務方面，我們都看到 Adore Me 和 Dailylook 表現良好，還是在技術方面，我們對事情的進展感到非常滿意。隨著今年年底的到來，我們將迎來擁有該業務的兩週年紀念日。

The other thing that's interesting about Adore Me is that they provide an incubator opportunity for us. So as we think about AI and GenAI, in particular, Adore Me is the typical spare. The small, agile, technology-led business who can test and tiptoe into that kind of environment for us and Victoria's Secret can pick up the learnings on the back end. So we're very pleased to have Adore Me as part of our family and delighted with how things are going.

Adore Me 的另一個有趣之處是，他們為我們提供了孵化器機會。因此，當我們考慮 AI 和 GenAI 時，Adore Me 是典型的替代品。小型、敏捷、以技術為主導的企業可以為我們測試並小心翼翼地進入這種環境，維多利亞的秘密也可以從後端吸取經驗教訓。因此，我們很高興 Adore Me 成為我們家庭的一部分，並且對目前的進展感到高興。

In PINK, as we repeatedly say, it's a turnaround strategy, it could not have been more off-color when -- if we think about two years ago, when we identified the problems in that business, the business had got away from the core of who the customer is. We want that customer to be collegiate, youthful, evolving, confident, optimistic, and the assortments that we had two years ago didn't look like that at all. So the team have been rebuilding. We have new talent in place who've been in place for the last 12, 18 months, and they're really getting after it and reenergizing the entirety of the company.

正如我們一再說的，PINK 是一種扭虧為盈的策略，回想兩年前，當我們發現該業務存在問題時，我們發現該業務已經脫離了以客戶為核心的理念，而這一策略卻顯得格格不入。我們希望顧客是大學生，年輕，有發展前途，自信，樂觀，而我們兩年前的商品組合根本不是那樣的。因此球隊一直在重建。我們擁有新的人才，他們已經在公司任職 12 到 18 個月，他們正在努力為整個公司注入新的活力。

I would say the four watch words that I would give you around PINK are youthful, evolving, confident, and optimistic. That's what you should see from us, and that shows up in the categories that are performing best for us, which are to repeat myself, the Frankies collaboration, flare bottoms, the Natalia Bryant brand collaboration was very strong. We see good growth in sleep, in sports bras, in corset tops, across the board where we have merchandise that points that useful, evolving, confident, and optimistic we're doing well.

我想說，關於PINK，我想給你們四個口號：年輕、進步、自信、樂觀。這就是您應該從我們這裡看到的，並且這體現在我們表現最好的類別中，我再重複一遍，Frankies 合作款喇叭褲、Natalia Bryant 品牌合作款都非常強勁。我們看到睡眠、運動胸罩、緊身胸衣等各個領域的良好增長，我們的商品都表明我們功能強大、不斷發展、充滿信心和樂觀，我們做得很好。

So very pleased with the team and how they're doing in that environment. More to do, no question, it remains a drag on the company as a whole, but cautiously optimistic as we go into the rest of the year.

我對團隊以及他們在那種環境中的表現感到非常滿意。毫無疑問，還有很多事情要做，這仍然會拖累整個公司，但隨著我們進入今年剩餘時間，我們可以謹慎樂觀地看待這種情況。

Thank you so much.

太感謝了。

Alex Straton, Morgan Stanley.

摩根士丹利的亞歷克斯·斯特拉頓。

Perfect. Thanks so much for taking the question. Maybe one for Martin and one for TJ. So Martin, you noted some intimates market improvement in North America. Any sense for what enabled that trend change and then the magnitude? I'm wondering if it impacts your view from here?

完美的。非常感謝您回答這個問題。也許一個給馬丁，一個給TJ。馬丁，你注意到北美貼身衣物市場有改善。有什麼原因會導致這種趨勢發生變化，而且變化幅度如此之大？我想知道這是否會影響您的觀點？

And then, TJ, just pretty upbeat on the digital result, though I did notice the sales declined year-over-year after growing throughout last year. So can you help me just understand the change in trend there? Thanks so much.

然後，TJ，我對數字結果非常樂觀，儘管我確實注意到銷售額在去年全年增長後同比下降。那麼你能幫助我了解那裡的趨勢變化嗎？非常感謝。

Thanks, Alex. Appreciate the question. So I'll take the market share question. I think there are three headlines in my mind about market share. Number one, the overall market decline that we've seen for the past five quarters improved. Now there's some noise in the first quarter around 53rd week and Easter shift and so on. So it's not a brilliant compared to prior year, but undisputedly, the overall market was better in the first quarter. Not a massive turnaround, but it was definitely better.

謝謝，亞歷克斯。我很感謝你提出這個問題。因此我將回答市場佔有率的問題。我認為關於市場佔有率有三個標題。第一，過去五個季度以來的整體市場下滑趨勢有所改善。現在第一季第 53 週左右以及復活節輪換等期間出現了一些噪音。因此，與去年相比，這並不是什麼亮點，但無可爭議的是，第一季的整體市場表現更好。雖然不是一個巨大的轉變，但肯定是好轉了。

Second headline would be, as I said earlier, our share remains essentially flat at 20%. There are some puts and takes within the digital up a nudge, stores down a nudge, sports bras showing growth for the first time in as long as I can remember, and solid performance in bras and panties.

第二個標題是，正如我之前所說，我們的份額基本上保持在 20% 左右。在數位化方面，有一些事情需要改變，有些事情需要改變，例如數位化稍微上升，有些商店稍微下降，運動胸罩在我記憶中首次出現增長，胸罩和內褲的表現也比較穩健。

The third headline would be around what we call Marpril, March and April, which was the strongest performance we've seen in a while. I really don't want to get into month-on-month looking at reviews of market share. It's a very short period of time. But we are encouraged that both the market and our performance were good during the Marpril period.

第三個標題是關於我們所說的 Marpril，三月和四月，這是我們一段時間以來看到的最強勁的表現。我真的不想逐月查看市場份額的評論。這是一段非常短暫的時間。但我們很高興看到，在 Marpril 期間，市場和我們的表現都表現良好。

So early days. We're pleased that it looks like a turnaround in the market that we'd anticipated it might not happen until the very back end of this year. So I hope that it sustains and builds from here. Why would it be. I mean we were very surprised that there was a decline at all. Over the long run that we've been in -- that I've been in this business, 16 years, don't remember seeing decline in the intimates market. So it's unusual to have had decline. And so I hope it's a return to situation normal. Nothing overly structural going on in the world at large as far as we can detect. So probably just a normalization and a correction I would say. TJ?

還太早。我們很高興看到市場似乎出現了好轉，而我們之前預計這種情況可能要到今年年底才會出現。所以我希望它能持續發展。為什麼會這樣呢？我的意思是，我們對出現如此大的下降感到非常驚訝。自從我從事這個行業 16 年以來，我不記得看到過貼身衣物市場衰退。因此出現衰退的情況並不常見。我希望情況能夠恢復正常。據我們所知，世界上沒有發生任何過度結構化的事情。所以我會說這可能只是一種正常化和修正。TJ？

Yeah, your second question, Alex, from a digital perspective, again, really looking at trends throughout the quarter as much as the quarter in total. So we saw the digital trends move in a positive direction throughout the quarter, again, supporting April, it's the biggest month, and also outperforming stores. So we're seeing digital grow as a percent of the mix. As Martin mentioned, the volume of customer-facing changes, again, the cumulative effect on that is what we're seeing build through Q1, obviously sets us up well for Q2.

是的，亞歷克斯，你的第二個問題，從數字角度來看，再次真正關注整個季度的趨勢以及整個季度的趨勢。因此，我們看到整個季度的數位趨勢都朝著積極的方向發展，再次支持了 4 月份，這是最大的月份，表現也優於商店。因此，我們看到數位化佔總消費量的百分比正在成長。正如馬丁所提到的，面向客戶的變化量，以及我們在第一季看到的累積效應，顯然為第二季做好了準備。

I think additionally, just from an actual reporting standpoint, as we come across the end of the quarter, we really recognized sales based on when the customer receives it. So the importance of that is, again, as the business got stronger as we move through the quarter on a retail basis, we could see the sales happening at the end of April those likely get recorded and when the customer receives the product. So there is a little bit of timing difference there.

我認為此外，從實際報告的角度來看，當我們到達季度末時，我們確實根據客戶收到貨物的時間來確認銷售額。因此，這一點很重要，隨著我們在本季度的零售業務中變得更加強勁，我們可以看到 4 月底發生的銷售情況，這些銷售可能會在客戶收到產品時進行記錄。因此這裡存在一點點時間差異。

And then, again, the feedback on the enhancements to the site whether it's fewer clicks or removing category, landing pages, visual search, shoppable video, Martin mentioned Try-On at Home in test mode, just the volume of opportunities and strengths that we've built over a number of months and invested in are just now coming home and starting to show up in a positive way in results. So we're seeing that show up in better traffic trends. We're seeing it show up in improved conversion, again, week-on-week, month-on-month.

然後，再次，關於網站增強功能的反饋，無論是減少點擊次數還是刪除類別、登錄頁面、視覺搜索、可購物視頻，馬丁在測試模式下提到了在家試穿，我們在過去數月中建立並投資的大量機會和優勢現在才剛剛開始顯現，並開始在結果中以積極的方式展現出來。所以我們看到了更好的交通趨勢。我們看到轉換率逐週、逐月都有所提升。

So that's what we're really pointing to when you hear us talk optimistically about the digital business. What we're seeing currently and what we know is kind of that cumulative or building effect that will support the balance of the year.

所以當您聽到我們樂觀地談論數位業務時，我們真正要指的就是這一點。我們目前所看到的和所知道的是，這種累積效應或建設效應將支撐今年的平衡。

Thanks, Alex. Ivy let's go with one more question. I think we have time for one more, please.

謝謝，亞歷克斯。Ivy，我們再問一個問題。我想我們還有時間再說一次。

Marni Shapiro, The Retail Tracker.

Marni Shapiro，零售追蹤者。

Hey, guys, congratulations. Honestly, PINK is notably different. And I loved your comment about off color because I think the colors now look significantly better. I'm curious if you could just talk a little bit more about PINK though. Are you seeing the lapse shopper come in? Are you bringing in a new shopper there? And I'm curious how you feel about -- I know the apparel inventory has been a big part of the conversation there. How do you feel about the level and the balance of apparel versus intimates at PINK? And how should we think about where that balance is in the back half of the year?

嘿，夥計們，恭喜你們。說實話，PINK 確實與眾不同。我很喜歡您關於顏色偏色的評論，因為我認為現在的顏色看起來好多了。我很好奇您是否可以再多談一談 PINK 呢。您看到失誤的顧客進來了嗎？您會帶來新的顧客嗎？我很好奇您的感受——我知道服裝庫存一直是人們討論的重要部分。您如何看待 PINK 的服裝與內衣的檔次與平衡？那我們該如何看待今年下半年的平衡點呢？

Thank you, Marni. And as always, we appreciate your encouragement. For those that don't know, Marni runs a fantastic track that gives us real-time feedback and other brands. And you're more right than not, Marni, I will tell you. And we are pleased that the performance in PINK is across all categories. So our intimates business has been good and our apparel business has been better.

謝謝你，瑪尼。和往常一樣，我們感謝您的鼓勵。對於那些不知道的人來說，Marni 擁有一條很棒的賽道，可以為我們提供即時回饋和其他品牌的資訊。你說得對，瑪尼，我告訴你。我們很高興看到PINK在各個類別中都有出色的表現。因此，我們的貼身衣物業務表現良好，服裝業務也表現較好。

You're right to suggest that the balance between those two might adjust. I think we got overly long in intimates and underinvested in apparel, and that's primarily because of what we were doing in apparel wasn't working. It became self-fulfilling that we had less inventory and we had less buy. We got to change that. PINK is fundamentally a young person's brand who shops multiple categories. She comes into the franchise through apparel. We got to be good at apparel. It's the most important thing to do. So you should see the balance -- still seeing that intimates is important, but less dominant on intimates, more dominant on all aspects of apparel.

您說得對，這兩者之間的平衡可能會調整。我認為我們在內衣領域投入的時間太長，而對服裝領域的投資不足，這主要是因為我們在服裝領域的做法沒有取得效果。我們的庫存減少了，購買量也減少了，這成為了必然結果。我們必須改變這種狀況。PINK 本質上是一個針對購買多種類別商品的年輕人的品牌。她透過服裝進入該特許經營領域。我們必須擅長服裝。這是最重要的事。因此，你應該看到平衡——仍然看到貼身衣物很重要，但在貼身衣物上占主導地位的程度較低，而在服裝的各個方面占主導地位的程度較高。

In terms of the customer, clearly, it's a Gen Z customer. The good news -- very, very, very good news for Victoria's Secret & Co. as a whole is that we over-index on Gen Z, we really do, particularly on Victoria's Secret. So that gives us an unfair advantage if it's coming in for Victoria's Secret, we should be able to get it for PINK at the same time. It's really, as you know, all about the merchandise, the customer is there. She has a high curiosity for what we're doing. We just got to deliver really compelling merchandise assortments.

就客戶而言，顯然這是 Z 世代客戶。好消息——對於維多利亞的秘密公司整體來說非常非常非常好的消息是，我們過度關注 Z 世代，我們確實如此，尤其是維多利亞的秘密。因此，如果它進入維多利亞的秘密，這將為我們帶來不公平的優勢，我們應該能夠同時將它進入PINK。正如你所知，一切都與商品有關，顧客就在那裡。她對我們所做的事情非常好奇。我們只需要提供真正引人注目的商品組合。

And as I said, I feel confident the team are on it. We're being more bullish, and we're putting more of our inventory behind the brand as we get more conviction as we get more confidence and we see the results coming in. So again, thank you, Marni, for your encouragement. And thank you, everybody, for your calls this morning. We appreciate it.

正如我所說的，我對團隊有信心。我們變得更加樂觀，隨著我們變得更加確信，更加有信心，並且看到了成果，我們將把更多的庫存投入到該品牌。所以，再次感謝 Marni 的鼓勵。感謝大家今天早上的來電。我們對此表示感謝。

Thanks, everyone. That concludes the call this morning. We appreciate your continuing interest in Victoria's Secret. Have a great day.

謝謝大家。今天早上的通話到此結束。感謝您對維多利亞的秘密的持續關注。祝你有美好的一天。

Thank you all for participating in the Victoria's Secrets & Company first-quarter 2024 earnings conference call. That concludes today's conference. Please disconnect at this time and enjoy the rest of your day.

感謝大家參加維多利亞的秘密公司 2024 年第一季財報電話會議。今天的會議到此結束。請立即斷開連接並享受剩餘的一天。