WEYCO Group Inc (WEYS) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Weyco second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Weyco 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Judy Anderson, Chief Financial Officer. Judy?

現在我想將會議交給今天的第一位發言人，財務長朱迪·安德森。朱迪？

Good morning, and welcome to Weyco Group's conference call to discuss second-quarter 2024 results. On the call with me today are Tom Florsheim, Jr., Chairman and Chief Executive Officer; and John Florsheim, President and Chief Operating Officer. Before we begin to discuss the results for the quarter, I will read a brief cautionary statement.

早安，歡迎參加 Weyco 集團的電話會議，討論 2024 年第二季業績。今天與我通話的是董事長兼執行長 Tom Florsheim, Jr.；以及總裁兼營運長 John Florsheim。在我們開始討論本季的業績之前，我將閱讀一份簡短的警告聲明。

During this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that these statements are just predictions and that actual events or results may differ materially. We refer you to the section entitled Risk Factors in our most recent annual report on Form 10-K, which provides a discussion of important factors and risks that could cause our actual results to differ materially from our projections. These risk factors are incorporated herein by reference. They include, in part, the uncertain impact of inflation on our cost and consumer demand for our products increased interest rates and other macroeconomic factors that may cause a slowdown or contraction in the US or Australian economies.

在這次電話會議中，我們可能會就我們對未來事件和公司未來財務表現的當前預期做出預測或其他前瞻性陳述。我們希望提醒您，這些陳述只是預測，實際事件或結果可能會有重大差異。我們建議您參閱我們最新的 10-K 表年度報告中標題為「風險因素」的部分，其中討論了可能導致我們的實際結果與我們的預測有重大差異的重要因素和風險。這些風險因素透過引用併入本文。其中部分包括通貨膨脹對我們的成本和消費者對我們產品的需求的不確定影響、利率的增加以及可能導緻美國或澳洲經濟放緩或收縮的其他宏觀經濟因素。

Overall net sales for the second quarter of 2024 were $63.9 million, down 5% compared to sales of $67 million in 2023. Consolidated gross earnings increased to 43.9% of net sales compared to 43.3% of net sales in last year's second quarter due mainly to higher gross margins in our North American wholesale segment. Earnings from operations were flat at $6.7 million in both the second quarters of 2024 and 2023. Net earnings were a second quarter record of $5.6 million or $0.59 per diluted share, up 15% over our previous record of $4.9 million or $0.50 per diluted share last year.

2024 年第二季的整體淨銷售額為 6,390 萬美元，比 2023 年的 6,700 萬美元下降 5%。綜合毛收益佔淨銷售額的比例從去年第二季的 43.3% 增至 43.9%，主要是由於北美批發部門毛利率的增加。2024 年和 2023 年第二季的營運利潤均持平於 670 萬美元。第二季淨利創歷史新高，達 560 萬美元，即稀釋後每股收益 0.59 美元，比去年創下的 490 萬美元，即稀釋後每股收益 0.50 美元的記錄增長了 15%。

Net sales in our North American wholesale segment were $50.2 million, down 2% from $51.5 million in the second quarter of 2023. The decrease was due to lower sales of our BOGS and Stacy Adams brands, partially offset by higher sales of our Nunn Bush and Florsheim brands. Wholesale gross earnings were 38.2% of net sales in the second quarter of 2024 compared to 37% of net sales last year. Gross margins improved as a result of lower inventory costs. Wholesale selling and administrative expenses totaled $13.4 million for the quarter compared to $13.7 million last year, which constituted 27% of net sales in both periods.

我們北美批發部門的淨銷售額為 5,020 萬美元，比 2023 年第二季的 5,150 萬美元下降 2%。下降的原因是我們的 BOGS 和 Stacy Adams 品牌的銷售下降，但部分被我們的 Nunn Bush 和 Florsheim 品牌的銷售成長所抵消。2024 年第二季批發總收入佔淨銷售額的 38.2%，而去年為淨銷售額的 37%。由於庫存成本降低，毛利率有所改善。本季批發銷售和管理費用總計 1,340 萬美元，而去年同期為 1,370 萬美元，佔兩個期間淨銷售額的 27%。

Wholesale operating earnings totaled $5.8 million for the quarter, up 8% from $5.4 million in 2023, primarily due to the impact of higher gross margins. Net sales in our retail segment were flat at $7.6 million in both the second quarters of 2024 and 2023. Retail gross earnings as a percent of net sales were 67.5% and 66.2% in the second quarter of 2024 and '23, respectively. Retail operating earnings were $700,000, down from $1.1 million in last year's second quarter. The decrease was due to higher retail selling and administrative expenses this year. primarily web advertising and freight costs.

該季度批發營業利潤總計 580 萬美元，比 2023 年的 540 萬美元增長 8%，這主要是由於毛利率上升的影響。2024 年和 2023 年第二季度，我們零售部門的淨銷售額持平於 760 萬美元。2024 年第二季和 2023 年第二季零售總收入佔淨銷售額的百分比分別為 67.5% 和 66.2%。零售營業利潤為 70 萬美元，低於去年第二季的 110 萬美元。下降的原因是今年零售銷售和管理費用增加。主要是網路廣告和運費。

Web advertising expenses in the second quarter of 2024 increased compared to last year's second quarter due to the reallocation of certain expenditures historically charged in our wholesale segment that primarily benefit our website. Our other operations historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific, collectively referred to as Florsheim Australia. We ceased operations in the Asia Pacific region in 2023 and are in the final stages of winding down that business. As a result, the 2024 operating results of the other category primarily reflect that of Australia and South Africa.

與去年第二季相比，2024 年第二季的網路廣告費用有所增加，原因是我們批發部門歷史上收取的某些支出進行了重新分配，這些支出主要有利於我們的網站。我們的其他業務歷史上包括我們在澳洲、南非和亞太地區（統稱為 Florsheim Australia）的零售和批發業務。我們於 2023 年停止在亞太地區的業務，目前正處於結束該業務的最後階段。因此，其他類別的2024年經營業績主要反映澳洲和南非的表現。

Net sales of Florsheim Australia were $6.1 million, down 23% from $7.9 million in the second quarter of 2023. Florsheim Australia's gross earnings were 62% of net sales for the quarter compared to 62.4% of net sales last year. Its operating earnings totaled $200,000 for the period down from $300,000 last year as a result of lower sales. Interest income totaled $1 million in the second quarter of 2024 compared to $200,000 in last year's second quarter. This year included interest earned on higher cash balances in the US and Canada.

Florsheim Australia 的淨銷售額為 610 萬美元，比 2023 年第二季的 790 萬美元下降 23%。Florsheim Australia 本季的總收入佔淨銷售額的 62%，而去年為淨銷售額的 62.4%。由於銷售額下降，該公司當期營業利潤總計 20 萬美元，低於去年的 30 萬美元。2024 年第二季利息收入總計 100 萬美元，而去年第二季為 20 萬美元。今年包括美國和加拿大因現金餘額增加而賺取的利息。

At June 30, 2024, our cash and marketable securities totaled $84.8 million, and we had no debt outstanding on our $40 million revolving line of credit. During the first six months of 2024, we generated $17.7 million of cash from operations and used funds to pay $7.2 million in dividends. We also repurchased $0.5 million of company stock and had $300,000 of capital expenditures. We estimate that 2024 annual capital expenditures will be between $1 million and $3 million. On August 6, 2024, our Board of Directors declared a cash dividend of $0.26 per share to all shareholders of record on August 19, 2024, payable September 30, 2024.

截至 2024 年 6 月 30 日，我們的現金和有價證券總額為 8,480 萬美元，我們的 4,000 萬美元循環信貸額度沒有未償債務。2024 年前六個月，我們從營運中產生了 1,770 萬美元的現金，並使用資金支付了 720 萬美元的股息。我們也回購了 50 萬美元的公司股票，並有 30 萬美元的資本支出。我們預計 2024 年年度資本支出將在 100 萬至 300 萬美元之間。2024年8月6日，我們的董事會宣布向2024年8月19日在冊的所有股東派發每股0.26美元的現金股息，並於2024年9月30日支付。

I would now like to turn the call over to Tom Florsheim, Jr., Chairman and CEO.

我現在想將電話轉給董事長兼執行長 Tom Florsheim, Jr.。

Thanks, Judy. And good morning, everyone. We are pleased with our wholesale performance, especially given the challenging economic environment for discretionary purchases like footwear. While total brand shipments were down 2% for the quarter, we were able to deliver higher wholesale operating earnings driven by improved gross margins and we registered solid increases with two of our brands.

謝謝，朱迪。大家早安。我們對批發業績感到滿意，特別是考慮到鞋類等非必需品採購面臨的經濟環境充滿挑戰。雖然本季品牌總出貨量下降了 2%，但由於毛利率提高，我們能夠實現更高的批發營業收入，並且我們的兩個品牌實現了穩健成長。

As we enter the back half of the year, many retailers remain conservative in their approach to future order bookings. However, we are encouraged by the strength of our at-once business, and we believe we are well positioned with the right inventory to leverage an uptick in consumer demand. Our legacy wholesale business increased slightly in the second quarter with Florsheim and Nunn Bush up 3% and 8%, respectively, and Stacy Adams down 10%. The increase for Nunn Bush was partially due to a timing shift of shipments to a large retailer from third to second quarter.

隨著下半年的到來，許多零售商對未來訂單的預訂方式仍然保守。然而，我們對一次性業務的實力感到鼓舞，我們相信我們處於有利位置，擁有合適的庫存來利用消費者需求的上升。我們的傳統批發業務在第二季度略有成長，Florsheim 和 Nunn Bush 分別成長 3% 和 8%，Stacy Adams 下降 10%。納恩布什的成長部分是由於向大型零售商的出貨時間從第三季轉移到了第二季。

Our legacy brands faced the challenge of maintaining a strong position and refined footwear while expanding their presence in the casual segment. The traditional dress and dress casual footwear categories comprise a meaningful but shrinking market. We have done well over the years with all three legacy brands picking up market share by offering great product value in fresh, relevant designs that resonate with consumers.

我們的傳統品牌面臨著保持強勢地位和精緻鞋類的挑戰，同時擴大其在休閒領域的影響力。傳統正裝鞋和正裝休閒鞋類別構成了一個有意義但正在萎縮的市場。多年來，我們做得很好，所有三個傳統品牌都透過提供與消費者產生共鳴的新鮮、相關設計的巨大產品價值來提高市場份額。

While we remain committed to maximizing our leadership position in refined footwear, growth over the medium to long term is dependent on each brand's ability to navigate the casual lifestyle aesthetic that accelerated during the pandemic. From a product perspective, we are focused on introducing more hybrid and athleisure styles that appeal to today's consumer who places a premium on versatility and comfort. Our success in these categories is most evident on our websites.

雖然我們仍然致力於最大限度地擴大我們在精緻鞋類領域的領導地位，但中長期成長取決於每個品牌駕馭休閒生活方式美學的能力，這種美學在大流行期間加速了。從產品角度來看，我們專注於推出更多混合和運動休閒風格，以吸引當今注重多功能性和舒適性的消費者。我們在這些類別中的成功在我們的網站上最為明顯。

Nunn Bush and Florsheim now derived more than half of their direct-to-consumer sales volume from true casual and hybrid footwear. Stacy Adams, our most dress-oriented brand has also started to make inroads selling hybrid footwear. As we move forward, we expect all three brands to benefit from a more balanced product offering.

Nunn Bush 和 Florsheim 現在一半以上的直接面向消費者的銷售來自真正的休閒鞋和混合鞋。Stacy Adams 是我們最注重服飾的品牌，也開始進軍混合鞋類銷售領域。隨著我們的前進，我們預計所有三個品牌都將受益於更平衡的產品供應。

Our BOGS business experienced a 33% decline for the quarter. As noted in previous quarters, the outdoor weather boot market has been affected by oversaturation of inventory in two relatively mild winters. Retailers have spent the last 18 months working to normalize their inventory levels, and we are now seeing early signs of renewed wholesale demand in the US as retailers evaluate their upcoming inventory needs. We remain cautiously optimistic as we approach the key fall selling season. Our current focus for BOGS is to enhance the brand's presence in the workwear category, which is a more year-round business.

本季我們的 BOGS 業務下降了 33%。正如前幾季所指出的，戶外天氣靴市場在兩個相對溫和的冬季受到庫存過度飽和的影響。零售商在過去 18 個月裡一直致力於使庫存水準正常化，隨著零售商評估其即將到來的庫存需求，我們現在看到了美國批發需求復甦的早期跡象。隨著關鍵的秋季銷售季節臨近，我們保持謹慎樂觀。我們目前對 BOGS 的關注點是增強該品牌在工作服類別中的影響力，這是一項全年業務。

We're introducing lighter insulated boots with seamless construction suitable for use from September through May. These seamless construction boots offer more than twice the durability of traditional vulcanized boots and should serve as a significant differentiator as we expand our footprint in the farm and ag channel. Retail sales, which are generated mainly by our websites were flat for the quarter. We are encountering a more price-sensitive competitive environment.

我們推出了更輕的無縫結構絕緣靴，適合從 9 月到 5 月使用。這些無縫建築靴子的耐用性是傳統硫化靴子的兩倍以上，當我們擴大在農場和農業管道的足跡時，它們應該成為一個顯著的差異化因素。主要由我們的網站產生的零售額本季持平。我們正面臨一個對價格更加敏感的競爭環境。

Nunn Bush and Stacy Adams experienced slight declines for the quarter, while BOGS and Florsheim have low single-digit increases. We continue to invest in our online platform and believe that there is considerable room for future growth in e-commerce sales. Sales at Florsheim Australia were down 23% for the quarter. Approximately half of the decrease was attributable to the closing of our Asia Pacific business in late 2023. Australia's results were also impacted by the loss of a sizable wholesale customer. Three fewer stores operated in the quarter compared to the same period last year and a challenging environment at retail.

納恩布希 (Nunn Bush) 和史黛西亞當斯 (Stacy Adams) 本季度略有下降，而 BOGS 和弗洛舍姆 (Florsheim) 則出現低個位數增長。我們持續投資線上平台，相信未來電商銷售有相當大的成長空間。Florsheim Australia 本季銷售額下降 23%。大約一半的下降是由於我們在 2023 年底關閉了亞太地區業務。澳洲的業績也受到大量批發客戶流失的影響。與去年同期相比，本季營運的門市減少了 3 家，零售環境充滿挑戰。

Like their counterparts in the US, Australian consumers are facing inflationary pressures for basic everyday necessities in housing, leading to reduced spending on discretionary items such as footwear and apparel. We are focused on controlling our costs, while working to turn around both our Australian retail and wholesale businesses. Our overall inventory as of June 30, 2024, was $67.9 million up from $62 million at March 31, 2024.

與美國消費者一樣，澳洲消費者也面臨著房屋等基本日常必需品的通膨壓力，導致鞋類和服裝等非必需品的支出減少。我們專注於控製成本，同時努力扭轉我們的澳洲零售和批發業務。截至 2024 年 6 月 30 日，我們的整體庫存為 6,790 萬美元，高於 2024 年 3 月 31 日的 6,200 萬美元。

As discussed in our last conference call, we are in the process of bringing up inventories to meet our fall needs and to support our at-once business. Our inventory is currently at a good level, and we are forecasting it to be slightly higher at the end of the third quarter. Our overall gross margins were 43.9% for the quarter, up from 43.3% last year. We feel our margins are at a healthy level.

正如我們在上次電話會議中所討論的，我們正在增加庫存，以滿足我們的秋季需求並支援我們的即時業務。我們的庫存目前處於良好水平，我們預計第三季末庫存會略高。本季我們的整體毛利率為 43.9%，高於去年的 43.3%。我們認為我們的利潤率處於健康水平。

This concludes our formal remarks. Thank you for your interest in Weyco Group, and I would now like to open the call to your questions.

我們的正式發言到此結束。感謝您對 Weyco 集團的關注，現在我想開始回答您的問題。

(Operator Instructions) David Wright, Henry Investment Trust.

（操作員說明）大衛·賴特，亨利投資信託公司。

Congratulations on another great quarter. You continue to chug along and deliver results better than might be expected given what you hear about the overall economy. So congratulations.

恭喜又一個偉大的季度。鑑於您對整體經濟的了解，您將繼續前進並取得比預期更好的結果。所以恭喜你。

Thank you. We appreciate it.

謝謝。我們很感激。

And also, thanks for having the call and the obvious effort that you put into drawing up the script and the information that you share, it is really appreciated.

另外，感謝您的來電以及您為起草腳本和分享的資訊所付出的明顯努力，我們真的很感激。

We feel that it's something that we need to do for shareholders. But thanks for acknowledging that.

我們認為這是我們需要為股東做的事情。但感謝您承認這一點。

I wanted to ask, it's kind of obvious on its face, but just so I'm not confused. What is at-once business?

我想問一下，表面上很明顯，但只是為了讓我不感到困惑。什麼是一次性業務？

At-once business is business that comes in without having orders ahead from retailers. So most of the large retailers will give us orders for the future. So right now, we're out booking spring '25. So we're getting orders for next spring. And then once we get into the season retailers will give us their fill into their inventory if they haven't forecasted enough when they give us their orders and especially in an environment like right now, where retailers still have their memory, the situation that they ran into in 2023 when they had quite a bit too much inventory, which was caused by all the supply chain issues.

一次性業務是指無需零售商提前下訂單即可進入的業務。所以大多數大型零售商都會給我們未來的訂單。所以現在，我們正在預訂 25 年春季。所以我們收到了明年春天的訂單。然後，一旦我們進入季節，如果零售商在給我們訂單時沒有做出足夠的預測，他們就會向我們提供他們的庫存，特別是在像現在這樣的環境下，零售商仍然有記憶，他們的情況到了 2023 年，他們的庫存有點太多了，這是所有供應鏈問題造成的。

And so because of that, they're being very conservative when it comes to giving us future bookings. And so what that does is it means there's going to be more at-once business than there used to be. It's kind of a trend, actually, where the retailers are. We hope that trend doesn't go on forever, but right now, that is the trend where retailers want us to have the inventory when they need it instead of committing to in the future. So what we mean by at-once business is just a business that comes in with an order without having orders ahead for retailers.

因此，他們在為我們提供未來的預訂時非常保守。因此，這意味著一次性業務將比以前更多。事實上，這在零售商那裡是一種趨勢。我們希望這種趨勢不會永遠持續下去，但現在，零售商希望我們在需要時擁有庫存，而不是承諾在未來提供庫存。所以我們所說的一次性業務只是指沒有事先向零售商下訂單的情況下收到訂單的業務。

This is John. I just want to add to that. A great example would be BOGS where a lot of retailers kind of sit back and see what the weather is going to do. And then if there's a lot of precipitation or early winter, you get at once business. And last year, every fall, we get a fair amount of at-once business with BOGS, but we're more dependent on it than previous years right now because the retail trades being so conservative based on the last two mild winters.

這是約翰。我只想補充一點。BOGS 就是一個很好的例子，許多零售商都會袖手旁觀，看看天氣會發生什麼事。如果降水較多或初冬，你就會立刻有生意。去年，每年秋天，我們都會與 BOGS 獲得相當多的一次性業務，但我們現在比前幾年更加依賴它，因為零售貿易基於過去兩個溫和的冬季而變得非常保守。

Okay. So it's sort of on-demand business and you're trying to gain how much might be coming in so that you can meet it just right?

好的。因此，這是一種按需業務，您正在嘗試獲得可能的收入，以便能夠恰到好處地滿足它？

Exactly. And we have been pretty good at forecasting the needs of these retailers that are buying at-once and what we do is it's kind of the 80-20 rule, where we do a lot of business on the 20% of best styles. And so what we do is we stock in extra inventory on those styles that we know we're going to be able to use the inventory. It's not perishable like some of the seasonal goods. And so that we're in a position to take advantage of the at-once business. And the retailers really count on us to do that today.

確切地。我們非常擅長預測這些一次性購買的零售商的需求，我們所做的就是 80-20 法則，也就是我們在 20% 的最佳款式上做很多生意。因此，我們所做的就是為那些我們知道我們將能夠使用庫存的款式儲備額外的庫存。它不像一些季節性商品那樣容易腐爛。這樣我們就能夠利用即時業務。如今，零售商確實指望我們能夠做到這一點。

All right. And in wholesale, you called out lower inventory costs and I recall during the pandemic, freight was a big issue and was putting the cost of things up and you do mention freight costs in retail, but I wonder generally, is trade really still an issue?

好的。在批發方面，您呼籲降低庫存成本，我記得在大流行期間，運費是一個大問題，並且提高了成本，您確實提到了零售中的運費成本，但我想知道，總體而言，貿易真的仍然是一個問題嗎？

Freight costs have definitely come back down from their peak that was in 2022 was when we experienced the very high freight cost. However, in 2023, we were still experiencing those higher freight costs as we worked through the inventory that kind of had those higher freight costs attached. So we're still anniversarying right now when we look at 2024 compared to 2023, some higher freight costs last year that were kind of hangover from 2022. But freight costs normalized by late 2023. So we should be starting to we're kind of down at this more normalized level and it's been stable for some time. It's just when I kind of flow through our inventory.

貨運成本肯定已經從 2022 年的高峰迴落，當時我們經歷了非常高的貨運成本。然而，到 2023 年，當我們處理具有較高運費的庫存時，我們仍然遇到了較高的運費。因此，當我們將 2024 年與 2023 年進行比較時，我們現在仍然處於週年紀念日，去年貨運成本較高，這是 2022 年的後遺症。但到 2023 年底，貨運成本將恢復正常。因此，我們應該開始在這個更正常化的水平上有所下降，並且它已經穩定了一段時間。就在我整理庫存的時候。

So you're working off the last of that, we'll call it, higher-priced inventory?

那麼您正在處理最後一個，我們稱之為高價庫存？

We worked it off last year, and now we're into the lower -- well, actually, you're correct. You're correct. We'll be anniversarying the higher cost inventory still until about October of this year.

去年我們已經解決了這個問題，現在我們進入了較低的階段——嗯，實際上，你是對的。你是對的。我們將在今年 10 月之前慶祝成本較高的庫存。

It really is impressive these last few quarters, you just continue to be able to squeeze out a little bit of margin when one might be thinking that everything that's been -- could be done has been done. So I hope you can keep finding some extra places to squeeze.

過去幾季確實令人印象深刻，當人們可能認為已經完成的所有事情都已經完成時，你仍然能夠擠出一點利潤。所以我希望你能繼續尋找一些額外的地方來擠。

My last question is going to be on BOGS. And Tom, you mentioned obviously the mild winters. But I wonder, do you look at your BOGS sales historically for geographic. Has there been geographic concentration and where you are making most of the sales and then you try to like correlate those geographies with what the weather was in the winter versus what the weather is in the winter, obviously, up where you are. You know you're going to get winter every year but some other places like the Mid-Atlantic, they sort of stop getting winter. The Mid-Atlantic, the last few years doesn't get virtually no snow at all. So I'm curious geographically how you look at BOGS.

我的最後一個問題是關於 BOGS 的。湯姆，你顯然提到了溫和的冬天。但我想知道，您是否查看過 BOGS 的地理銷售歷史。是否存在地理集中度以及您在哪裡進行大部分銷售，然後您嘗試將這些地理位置與冬天的天氣聯繫起來，顯然，與您所在的地方的冬天天氣聯繫起來。你知道每年都會有冬天，但其他一些地方，例如大西洋中部，他們有點停止冬天了。大西洋中部地區，過去幾年幾乎沒有下雪。所以我很好奇你在地理上如何看待 BOGS。

Yes. No, we definitely look at it geographically in the areas where we do the best in our high season, which is fall are the areas that get more weather. And even last year in the Midwest, our snowfall was very light and the temperatures were warm. So it's just the reality of the situation is we need to build product that's going to sell and be less dependent on the weather. And that's why we're really focused on the farm and ag channel right now, which is a big channel and one that we're not that penetrated in that sells footwear like BOGS that is used by people in a more functional way than, say, in a city where people are buying boots only when it snows.

是的。不，我們肯定會從地理位置上看旺季表現最好的地區，即秋季，天氣晴朗的地區。即使去年在中西部，我們的降雪量也很小，氣溫也很溫暖。因此，現實情況是我們需要製造出能夠暢銷且更少依賴天氣的產品。這就是為什麼我們現在真正關注農場和農業管道，這是一個很大的管道，我們還沒有滲透到這個管道，銷售像 BOGS 這樣的鞋類，人們以更實用的方式使用它，比說， ，在一個人們只在下雪的時候才買靴子的城市。

And so you really want to get that business that is more functional. And what we're also trying to do is build lighter insulated footwear so that it just is more appropriate in these milder winters. We kind of have to assume that we're going to see this continue because it's really been the pattern. If you look over the last 5 or 10 years, we've had a lot of mild winners. And so we're trying to build a product that will be appropriate and that will sell in those milder temperatures.

因此，您確實希望獲得更實用的業務。我們也試著製造更輕的保暖鞋，以便更適合這些溫暖的冬天。我們必須假設我們會看到這種情況繼續下去，因為這確實是一種模式。如果你回顧過去 5 年或 10 年，我們有很多溫和的贏家。因此，我們正在努力開發一種適合併在較溫和的溫度下銷售的產品。

(Operator Instructions) I am showing no further questions at this time. I would now like to turn the call over to Judy Anderson, Chief Financial Officer, for closing remarks.

（操作員說明）我目前沒有提出任何進一步的問題。現在我想將電話轉給財務長朱迪·安德森 (Judy Anderson)，讓其致閉幕詞。

We just wanted to say thank you, everyone, for joining us today, and we hope you have a great day.

我們只想對大家今天加入我們表示感謝，希望你們有個愉快的一天。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。