Petco Health and Wellness Company Inc (WOOF) 2025 Q1 法說會逐字稿

Good afternoon, and welcome to the Petco first quarter 2025 earnings conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Tina Romani, Head of Investor Relations and Treasury. Please go ahead.

下午好，歡迎參加 Petco 2025 年第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係和財務主管蒂娜·羅馬尼 (Tina Romani)。請繼續。

Good afternoon and thank you for joining Petco's first quarter 2025 earnings conference call. In addition to the earnings release, there is a presentation available to download on our website at ir.petco.com. On the call with me today are Joel Anderson, Petco's Chief Executive Officer; and Sabrina Simmons, Petco's Chief Financial Officer.

下午好，感謝您參加 Petco 2025 年第一季財報電話會議。除了財報之外，您還可以在我們的網站 ir.petco.com 下載一份簡報。今天與我一起參加電話會議的還有 Petco 執行長 Joel Anderson 和 Petco 財務長 Sabrina Simmons。

Before we begin, I'd like to remind everyone that on this call, we will make certain forward-looking statements, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include those set out in our earnings materials and SEC filings.

在我們開始之前，我想提醒大家，在這次電話會議上，我們將做出某些前瞻性陳述，這些陳述受許多風險和不確定性的影響，可能導致實際結果與這些陳述有重大差異。這些風險和不確定性包括我們的收益資料和美國證券交易委員會文件中列出的風險和不確定性。

In addition, on today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings release, presentation, and SEC filings. With that, I'll turn it over to Joel.

此外，在今天的電話會議上，我們將參考某些非公認會計準則財務指標。這些措施的對帳可以在我們的收益報告、簡報和美國證券交易委員會 (SEC) 文件中找到。說完這些，我就把麥克風交給喬爾。

Good afternoon, everyone, and thank you for joining us today. As I discussed with you at the start of the year, we have a unique opportunity to reinvent our iconic brand for the future and position the business to regain share in the large, highly fragmented, and resilient pet market.

大家下午好，感謝大家今天的參與。正如我在今年年初與您討論的那樣，我們有一個獨特的機會來重塑我們未來的標誌性品牌，並使業務重新獲得龐大、高度分散且具有彈性的寵物市場的份額。

We are taking a multi-phased approach to this work through improving our operating model, giving our stores a voice and restoring retail fundamentals. Our first quarter performance reflects these ongoing efforts as we delivered top line results in line with expectations, but most importantly, over delivered on our profitability goals.

我們正採取多階段方式進行這項工作，包括改善營運模式、賦予門市發言權和恢復零售基本面。我們第一季的業績反映了這些持續的努力，因為我們實現了符合預期的營收業績，但最重要的是，超額完成了我們的獲利目標。

This is a great testament to how our teams across the organization are coalescing around our overarching goal of delivering profitable sales growth, while operating with discipline. I'm proud of our team's dedication, agility and execution and delivering on our commitments.

這充分證明了我們整個組織的團隊如何齊心協力，共同實現獲利性銷售成長的整體目標，同時嚴格遵守營運紀律。我為我們團隊的奉獻精神、敏捷性和執行力以及兌現承諾感到自豪。

During the quarter, I had the opportunity to spend time with our district managers and our service leaders at our field leadership team meeting, where we bought our stores and service leaders together for the first time ever. I saw firsthand the energy that was created by connecting as One Petco team and was motivated by the work underway to simplify our operations, strengthen our retail and services foundation and get back to our roots.

在本季度，我有機會與我們的地區經理和服務領導一起參加現場領導團隊會議，在會上我們有史以來第一次將我們的商店和服務領導聚集在一起。我親眼目睹了作為一個 Petco 團隊團結在一起所產生的能量，並受到正在進行的工作的激勵，以簡化我們的運營，加強我們的零售和服務基礎並回歸我們的根源。

Our first quarter results bolster my confidence that we have the right strategy in place and a reenergized team that shares a collective commitment to unlocking Petco's full potential. With Phase 1 complete, and a highly experienced leadership team in place, our full attention has quickly turned to Phase 2. This phase is all about implementing and executing the multiple work streams we identified in Phase 1 to improve our overall retail fundamentals and financial performance.

我們第一季的業績增強了我的信心，我相信我們制定了正確的策略，並擁有一支充滿活力的團隊，共同致力於釋放 Petco 的全部潛力。隨著第一階段的完成以及經驗豐富的領導團隊的到位，我們的全部注意力迅速轉向第二階段。此階段主要涉及實施和執行我們在第一階段確定的多個工作流程，以改善我們的整體零售基礎和財務表現。

Said another way, we are putting our work into action and seeing our customers respond and react in real time. The examples I will share with you today all represent foundational building blocks that will support us when we transition to Phase 3, focused on growth.

換句話說，我們正在將我們的工作付諸行動，並看到我們的客戶即時回應和反應。我今天要與大家分享的例子都代表了基礎建構模組，這些模組將在我們過渡到專注於成長的第三階段時為我們提供支援。

Before getting into the progress against Phase 2, I'd like to spend some time on sourcing and the progress we've made to preserve maximum flexibility in the face of tariff uncertainties. Our cross-functional teams across merchandising, assortment planning, supply chain, finance and operations have mobilized together to identify various contingency plans and mitigation strategies. We are leaning into our long-standing scale vendor relationship, and we truly appreciate their partnership as we navigate ongoing fluid dynamics and uncertainty.

在介紹第二階段的進展之前，我想花一些時間討論一下採購以及我們在面對關稅不確定性時為保持最大靈活性所取得的進展。我們的商品銷售、分類規劃、供應鏈、財務和營運跨職能團隊齊心協力，共同製定各種應急計畫和緩解策略。我們傾向於長期的規模供應商關係，我們非常感謝他們的合作，因為我們正在應對持續的流體動力學和不確定性。

The current environment has served as a catalyst to accelerate work that was already underway as we strengthen our operating fundamentals. We are working towards building best-in-class product cost management, pricing capabilities and centralized operating principles to our product import process, just to name a few. I'm proud of the work the teams have accomplished to date, pleased to see them harnessing the energy that comes from seeing their work positively impact our results. Our ability to reiterate our full year outlook despite absorbing the impact of tariffs currently in place illustrates the meaningful progress we've made.

隨著我們加強營運基礎，當前的環境已成為加速已在進行的工作的催化劑。我們正在努力為我們的產品進口流程建立一流的產品成本管理、定價能力和集中營運原則，僅舉幾例。我為團隊迄今為止所取得的成就感到自豪，很高興看到他們利用自己的工作對我們的成果產生積極影響所產生的能量。儘管受到現行關稅的影響，我們仍能重申全年展望，這表明我們已經取得了有意義的進展。

Now turning back to Phase 2 is all about implementing and executing. Merchandise excellence is at the forefront of this work. As I discussed last quarter, we are optimizing our product assortment to more closely align with consumer demand, we are allocating more shelf space to higher productivity brands and SKUs. Let me give you a couple of examples, the teams executed on since our last call that you can already see in our stores.

現在回到第二階段，一切都與實施和執行有關。商品的卓越性是這項工作的重中之重。正如我在上個季度所討論的，我們正在優化我們的產品組合，以更緊密地滿足消費者的需求，我們正在為更高生產力的品牌和 SKU 分配更多的貨架空間。讓我給你舉幾個例子，自從我們上次通話以來，團隊的執行情況你已經可以在我們的商店中看到了。

First, we completed our cat category product reset at the end of May. Second, we kicked off our dog category reset this week. Both are being executed earlier in the year than we had done previously. What are many elements that go into a planogram reset, key focus for this year is centered around adding capacity for top-selling SKUs through both lower productivity SKU rationalization and increased shelf space. Let me give you one simple but powerful example.

首先，我們在五月底完成了貓咪產品的重置。其次，我們本週啟動了狗類別重置。這兩項工作的執行時間都比我們之前提早。規劃圖重置涉及許多要素，今年的重點是透過低生產力 SKU 合理化和增加貨架空間來增加暢銷 SKU 的容量。讓我舉一個簡單但有力的例子。

As we complete the dog food reset, you will see our shelves move about 6 inches higher. While this may not seem material, it allows us to remove a lot of airspace throughout our dog consumable department and increases shelf capacity by more than 10%. This example demonstrates how detailed the teams are in fixing every part of our business.

當我們完成狗糧重置時，您會看到我們的貨架移動了大約 6 英寸高。雖然這看起來並不重要，但它使我們能夠消除整個狗消耗品部門的大量空域，並將貨架容量提高 10% 以上。這個例子顯示了團隊在修復我們業務的每個部分時是多麼細緻。

Increased capacity drives both operational improvements and customer experience enhancements. Operationally, we are reducing lost sales from on-shelf stock outs and improving labor productivity by eliminating constant or continuous replacement between truck replenishments.

容量的增加既推動了營運的改善，也增強了客戶體驗。在營運方面，我們透過消除卡車補貨之間的持續或連續更換，減少了因貨架缺貨而造成的銷售損失，並提高了勞動生產力。

From the customer perspective, we are improving ability with higher in-stock availability. When you put all this together, it reinforces Petco as a reliable destination for all our customers that care needs. Another example, you will begin to see in stores this quarter, with the continued rollout throughout the year is a more strategic approach to end-cap displays.

從客戶角度來看，我們正在透過提高庫存可用性來提高能力。綜合以上所有因素，Petco 將成為所有需要照護的客戶的可靠選擇。另一個例子是，您將在本季開始在商店中看到，並且全年將繼續推出更具策略性的端蓋展示方法。

Historically, our end-cap displays were more transactional agreements with our vendors without a customer lens. Today, we are implementing a more strategic sales-focused approach that is mutually beneficial to Petco, our vendor partners and, most importantly, our customers.

從歷史上看，我們的端蓋展示更多是與供應商達成的交易協議，而沒有從客戶的角度考慮。今天，我們正在實施一種更具策略性的以銷售為中心的方法，這對 Petco、我們的供應商合作夥伴以及最重要的是我們的客戶都是互惠互利的。

We will leverage end-cap displays to highlight newness, spotlight innovation, feature seasonal offerings, and promote value. I encourage all our vendors to bring forth ideas of newness and innovation that can create a physical spotlight for our customers' needs to better serve their pets.

我們將利用端蓋展示來突顯新品、聚焦創新、展示季節性產品並提升價值。我鼓勵我們所有的供應商提出新穎和創新的想法，為我們的客戶的需求創造物理焦點，以便更好地為他們的寵物服務。

Next, services, the fastest-growing area of the pet category. In my view, our services offering is what fortifies our competitive moat. We have an established leadership position and a differentiated model of owned grooming and vet locations at scale. During Phase 1, we identified several opportunities for improved productivity and have already implemented several of them.

接下來是服務，這是寵物類別中成長最快的領域。在我看來，我們提供的服務鞏固了我們的競爭力。我們擁有穩固的領導地位，並擁有規模化的自有美容和獸醫診所的差異化模式。在第一階段，我們發現了幾個提高生產力的機會，並且已經實施了其中的幾個。

For example, our Grooming software has been upgraded to allow more flexibility for online appointments. With over 40% of our appointments made online, it is important our pet parents constantly see multiple open time slots. They don't consider an alternative rooming solution.

例如，我們的美容軟體已經升級，可以為線上預約提供更大的靈活性。由於我們的預約有超過 40% 是透過線上進行的，因此，讓寵物主人不斷看到多個空閒時間段非常重要。他們沒有考慮其他的住宿解決方案。

On the vet side, we've made several software enhancements to our vet scheduling system to ensure we have better coverage. I believe our industry-leading services offering once optimized, will be a key driver of in-store customer traffic, customer retention and loyalty over time. Our aim is to provide a comprehensive ecosystem that embodies our mission to improve the lives of pets and pet parents.

在獸醫方面，我們對獸醫排程系統進行了幾項軟體改進，以確保我們能夠提供更好的覆蓋範圍。我相信，我們業界領先的服務一旦優化，將成為店內顧客流量、顧客留任率和忠誠度的關鍵驅動力。我們的目標是提供一個全面的生態系統，體現我們改善寵物和寵物主人生活的使命。

Services remains our fastest-growing business and continues to deliver positive growth. Additionally, we are pleased with the productivity improvements seen in both hospitals and grooming operations supporting gross margin expansion in the quarter.

服務仍然是我們成長最快的業務，並繼續實現正成長。此外，我們對醫院和美容業務的生產力提高感到高興，這支持了本季毛利率的擴大。

With respect to operational efficiencies, as you've heard me talk for several quarters now, we are instilling an owner's mindset when it comes to cost discipline. Though we've made some great progress in areas like marketing, store expenses and supply chain, we have more opportunity ahead and are leaving no stone unturned across the organization.

關於營運效率，正如你們幾個季度以來聽到我談論的那樣，我們在成本紀律方面正在灌輸一種所有者的心態。雖然我們在行銷、門市費用和供應鏈等領域取得了一些重大進展，但我們未來還有更多的機會，我們正在整個組織內竭盡全力。

In light of a more uncertain macro environment, this work is paramount. I'm impressed with how our teams have come together, working cross-functionally and in a more coordinated fashion with everyone driving towards the same objective. Specifically, the operations team led by Joe Venezia, our Chief Revenue Officer, is working on three areas of improvement: store simplification, retail excellence around leveraging the One Petco way and customer engagement.

鑑於更不確定的宏觀環境，這項工作至關重要。我們的團隊團結一致，跨職能地開展工作，以更協調的方式開展工作，每個人都朝著同一個目標努力，這令我印象深刻。具體來說，由我們的首席營收長喬·威尼斯 (Joe Venezia) 領導的營運團隊正在致力於三個改進領域：商店簡化、利用 One Petco 方式的卓越零售和客戶參與。

All three of these work streams were kicked off at the field leadership meeting I discussed earlier. Since joining last year, Joe has quickly assessed the opportunities and is unifying both the services and operations team to make quick and lasting optional efficiencies.

所有這三個工作流程都是在我之前討論過的現場領導會議上啟動的。自去年加入以來，喬迅速評估了機遇，並統一了服務和營運團隊，以實現快速和持久的可選效率。

As we enter the second quarter and move into the back half, we remain focused positioning the business for a return to offense. But it is important to remind you that improving our retail fundamentals and delivering better financial performance is our first priority. We will continue driving productivity while beginning to seed and test revenue growth initiatives across product innovation, marketing, and store experience.

當我們進入第二季並進入下半年時，我們將繼續專注於為業務定位，以恢復進攻。但需要提醒您的是，改善我們的零售基本面和實現更好的財務表現是我們的首要任務。我們將繼續提高生產力，同時開始在產品創新、行銷和商店體驗方面播下並測試收入成長計劃。

Finally, let me conclude our Phase 2 progress from a customer lens. The Petco brand marks the sixth anniversary this year. This is an amazing milestone not many reach. With our rich heritage, we have an obligation to serve our customers a robust assortment of solutions-based and trend-right product with a compelling value proposition, and we see significant opportunity to continue to improve on this front. Let me give you some specific examples of customer-facing areas, you should expect to see change.

最後，讓我從客戶的角度來總結我們第二階段的進展。Petco 品牌今年迎來了六週年。這是一個令人驚嘆的里程碑，很少有人能達到。憑藉我們豐富的傳統，我們有義務為客戶提供一系列基於解決方案、符合潮流且具有引人注目的價值主張的產品，並且我們看到了在這方面繼續改進的巨大機會。讓我給你舉一些面向客戶領域的具體例子，你應該會看到改變。

Number one, our stores over time will feature increased newness and more fun product with the convenient weekly consumable items they count on always being in stock. Number two, our marketing message will be evolving to a more solutions-oriented framework, showcasing our comprehensive offerings. And number three, a new membership program is being designed to create a more personalized long-term loyalty experience with an expected launch in 2026.

首先，隨著時間的推移，我們的商店將推出更多新穎、更有趣的產品，並且每週都會提供方便的消耗品，確保庫存充足。第二，我們的行銷訊息將演變為更以解決方案為導向的框架，展示我們全面的產品。第三，我們正在設計一項新的會員計劃，旨在創造更個人化的長期忠誠度體驗，預計將於 2026 年推出。

In addition, our North Star work, which we expect to complete in the back half of 2025 has helped us better understand the customer segments we can own. We are in the midst of conducting both qualitative and quantitative analysis that will inform both our strategy and our customer engagement going forward. Results of this work will be foundational to informing our Phase 3, a return to growth.

此外，我們預計將於 2025 年下半年完成的北極星工作幫助我們更了解我們可以擁有的客戶群。我們正在進行定性和定量分析，這將為我們未來的策略和客戶參與提供資訊。這項工作的成果將為我們第三階段恢復成長奠定基礎。

These examples demonstrate that while we are moving fast to improve productivity, and deliver better financial performance, we are equally now focused on identifying areas to grow and how to better communicate with our customers. We will be unified in our message to include both online and in-store and utilize a test-and-learn approach to ensure these changes truly resonate with our customers. We look forward to sharing more as this evolves on future calls this year.

這些例子表明，雖然我們正在快速提高生產力並實現更好的財務業績，但我們現在同樣專注於尋找成長領域以及如何更好地與客戶溝通。我們將統一我們的訊息，包括線上和店內，並採用測試和學習的方法來確保這些變化真正引起客戶的共鳴。我們期待在今年未來的電話會議上分享更多進展。

So in summary, 2025 is a year of transformation for Petco. I'm incredibly pleased with the work accomplished to date, which you can see in our Q1 results. This is especially gratifying as it's all been done while we navigate today's evolving trade environment. Our leader team and our Board are aligned to the same goal of returning Petco to an industry-leading destination for pets and pet parents. I want to thank our nearly 30,000 Petco partners are leaning into our transformation while simultaneously delivering customers' service and experience they look to Petco for.

總而言之，2025 年是 Petco 轉型的一年。我對迄今為止所完成的工作感到非常滿意，您可以在我們的第一季業績中看到這一點。這尤其令人欣慰，因為這一切都是在我們應對當今不斷變化的貿易環境時完成的。我們的領導團隊和董事會有著共同的目標，那就是讓 Petco 重新成為寵物和寵物主人的行業領先目的地。我要感謝我們近 30,000 名 Petco 合作夥伴，他們致力於我們的轉型，同時為客戶提供他們期望 Petco 提供的服務和體驗。

Acknowledging there is work ahead, I'm confident in the detailed multiphased approach currently in place. progress to date and optimistic in Petco's ability to reach its full potential over time. With that, I'd like to turn the call over to Sabrina, who will review the financials in more detail.

儘管我承認未來還有工作要做，但我對目前實施的詳細多階段方法充滿信心。迄今為止的進展並對 Petco 隨著時間的推移充分發揮其潛力的能力持樂觀態度。說完這些，我想把電話轉給薩布麗娜，她將更詳細地審查財務狀況。

Thank you, Joel, and good afternoon, everyone. We entered the year with the number one financial priority being to restore the health of our economic model through three key pillars, gross margin expansion, SG&A leverage and ROIC improvement. I'm very pleased we delivered against all three of these pillars in the first quarter. For the first quarter, comparable sales were down 1.3% with net sales down 2.3%. The difference between the comp and sales decline was driven by 25 net store closures in 2024 and the additional five closures we had in Q1, bringing our ending store count to 1,393.

謝謝你，喬爾，大家下午好。進入新的一年，我們的首要財務重點是透過三大支柱——毛利率擴大、銷售、一般及行政費用槓桿和投資回報率提高——恢復經濟模式的健康。我很高興我們在第一季實現了這三個支柱。第一季度，可比銷售額下降 1.3%，淨銷售額下降 2.3%。同店銷售額下降與同店銷售額下降之間的差異是由於 2024 年淨關閉 25 家門市以及第一季額外關閉 5 家門市，使我們的期末門市數量達到 1,393 家。

We expanded gross margin rate by over 30 basis points versus last year to 38.2% with expansion across both our products and services business. As an organization, we're focused on improving all levers within margin, including a more robust approach to average unit cost and average unit retail management. We established stronger guardrails, implemented more robust reviews of our pricing gaps, and deployed more data-driven processes to better manage markdowns and promotions.

隨著產品和服務業務的擴張，我們的毛利率較去年同期提高了 30 多個基點，達到 38.2%。作為一個組織，我們專注於改善利潤範圍內的所有槓桿，包括更強大的平均單位成本和平均單位零售管理方法。我們建立了更強有力的護欄，對我們的價格差距進行了更嚴格的審查，並部署了更多數據驅動的流程，以更好地管理降價和促銷。

All of this work exemplifies our focus on executing the retail fundamentals well with greater attention to detail and higher levels of accountability with the goal of expanding our margins. It's through the same focus on disciplined execution that we delivered more than 180 basis points of expense leverage during the quarter.

所有這些工作都體現了我們專注於執行好零售基本原則，更加重視細節和更高水準的責任，目標是擴大我們的利潤率。正是透過同樣注重嚴格執行，我們在本季度實現了超過 180 個基點的費用槓桿。

Excluding last year's onetime disposition costs, we leveraged approximately 160 basis points. As we've spoken about previously, this work is not a onetime cost-cutting exercise, but rather a shift in mindset, resulting in greater efficiency, agility and increase productivity.

不包括去年的一次性處置成本，我們的槓桿比率約為 160 個基點。正如我們之前所說，這項工作不是一次性的成本削減行動，而是思維方式的轉變，進而提高效率、靈活性和生產力。

Given the turbulent environment, we are especially proud of how our teams have mobilized quickly to accelerate several efficiency initiatives such as optimization of marketing spend, and implementation of operational improvements in our store labor model. We're pleased with the progress to date, and our teams continue to identify further savings opportunities as we adopt this more disciplined mindset in our day-to-day operations.

鑑於動盪的環境，我們尤其為我們的團隊能夠迅速動員起來加速實施多項效率措施感到自豪，例如優化行銷支出和實施門市勞動力模式的營運改善。我們對迄今為止的進展感到滿意，隨著我們在日常營運中採用這種更嚴謹的思維方式，我們的團隊將繼續尋找進一步的節約機會。

Operating profit was $16.4 million, an increase of $33 million or approximately $29 million when excluding disposition costs last year. Adjusted EBITDA increased $13.8 million to $89.4 million and expanded 105 basis points to 6% of sales. We're pleased that in the first quarter, we delivered on the framework we laid out at the start of the year to expand our gross margin rate and to leverage SG&A driving improvement in profitability.

營業利潤為 1,640 萬美元，增加了 3,300 萬美元，若扣除去年的處置成本則增加約 2,900 萬美元。調整後的 EBITDA 增加了 1,380 萬美元，達到 8,940 萬美元，並擴大了 105 個基點，達到銷售額的 6%。我們很高興，在第一季度，我們實現了年初制定的框架，擴大了毛利率，並利用銷售、一般及行政費用 (SG&A) 來提高盈利能力。

Moving to the balance sheet and cash flow. We ended the quarter with a cash balance of $139 million, an improvement of $48 million versus last year. Inventory continues to be managed well with ending inventory 5% below last year. Free cash flow was negative $44 million, primarily driven by incentive payout during the quarter.

轉到資產負債表和現金流量表。本季末，我們的現金餘額為 1.39 億美元，比去年同期增加了 4,800 萬美元。庫存繼續得到良好管理，期末庫存比去年同期低 5%。自由現金流為負 4,400 萬美元，主要受本季激勵支出的影響。

Now turning to our outlook. Let me start with an update on our tariff exposure. As a reminder, our most direct tariff exposure sits within our owned brands. On our fourth quarter call, we shared that our own brand inventory purchases from China, Canada and Mexico, were about 5% of our total merchandise cost of goods sold. When updating for the revised and expanded list of countries currently impacted, our exposure is only slightly higher at about 7%.

現在轉向我們的展望。首先讓我介紹一下我們的關稅風險的最新情況。提醒一下，我們最直接的關稅風險在於我們自己的品牌。在第四季電話會議上，我們表示，我們從中國、加拿大和墨西哥購買的自有品牌庫存約占我們銷售商品總成本的 5%。當更新目前受影響的國家的修訂和擴大名單時，我們的風險敞口僅略高，約為 7%。

Our indirect exposure sits primarily within our national brands. For many of these suppliers, we have long-standing relationships at scale and we are partnering together to navigate fluid dynamics and deploy mitigation excess.

我們的間接曝光主要集中在我們的國家品牌。對於許多這樣的供應商，我們擁有長期的大規模合作關係，我們正在合作探索流體動力學並部署緩解措施。

With that, for the full year, we are reiterating our full year outlook for 2025. As a reminder, our outlook at the beginning of the year excluded any potential impact of tariffs. Assuming tariffs remain at today's current level and no higher, we believe we can still deliver on the outlook we provided at the start of the year. For the full year, we continue to expect overall net sales to be down low single digits to last year, which includes the impact of 20 to 30 net store closures in 2025.

因此，對於全年而言，我們重申對 2025 年全年的展望。提醒一下，我們年初的展望排除了關稅的任何潛在影響。假設關稅維持在今天的水平並且不會更高，我們相信我們仍然可以實現年初提出的前景。就全年而言，我們仍然預計整體淨銷售額將比去年下降個位數，其中包括 2025 年關閉 20 至 30 家淨門市的影響。

We continue to expect adjusted EBITDA to be between $375 million and $390 million. With regard to other guidance items for the full year, we expect depreciation to be approximately $200 million, net interest expense of approximately $130 million and approximately $125 million to $130 million of capital expenditures with a greater focus on ROIC.

我們繼續預計調整後的 EBITDA 將在 3.75 億美元至 3.9 億美元之間。關於全年的其他指導項目，我們預計折舊約為 2 億美元，淨利息支出約為 1.3 億美元，資本支出約為 1.25 億至 1.3 億美元，更加重視投資回報率 (ROIC)。

For the second quarter specifically, we expect net sales to be down low single digits versus the prior year and adjusted EBITDA to be between $92 million and $94 million, up approximately 11% year-over-year at the midpoint.

具體來說，對於第二季度，我們預計淨銷售額將比上年下降個位數，調整後的 EBITDA 將在 9,200 萬美元至 9,400 萬美元之間，中位數年增約 11%。

In closing, I want to thank our teams across the organization for moving with urgency as we execute against the phases of our transformation while also mobilizing quickly and taking action to prioritize profitability in light of a fast-changing operating environment. We are pleased with the progress we've made is demonstrated in our first quarter results and guidance for the remainder of the year.

最後，我要感謝我們整個組織的團隊，在我們執行轉型階段的同時，迅速行動起來，在快速變化的營運環境中優先考慮獲利能力。我們對所取得的進展感到滿意，這體現在我們的第一季業績和今年剩餘時間的指導中。

With that, we welcome your questions.

我們歡迎您提出問題。

(Operator Instructions) Michael Lasser, UBS.

（操作員指示）瑞銀 (UBS) 的 Michael Lasser。

This is Sachin Verma on for Michael Lasser. I'd like to start with what are you seeing in pet adoption trends? And how do these trends impact your full year outlook?

這是 Sachin Verma 取代 Michael Lasser 上場的表演。首先我想問一下，您認為寵物收養趨勢是怎麼樣的？這些趨勢如何影響您的全年展望？

Yes. Thanks for the call. We're seeing -- it's pretty stable, not much change from the last call we had. And as far as the full year goes, and I said this last quarter as well, the 2025 is really a self-help story for Petco. So we're not relying on any tailwinds from the category like pet adoption to increase in order for us to deliver on the financial improvements that we talked about on this call and the last call.

是的。謝謝您的來電。我們看到——它相當穩定，與我們上次通話時相比沒有太大變化。就全年而言，我在上個季度也說過，2025 年對 Petco 來說真的是一個自救的故事。因此，我們不會依賴寵物收養等類別的任何順風來增加我們在此電話會議和上次電話會議上談到的財務改善。

So we feel really good about the progress we've made. And I think Q1 is a great indicator of how strong the year is playing out.

因此，我們對所取得的進展感到非常滿意。我認為第一季是一個很好的指標，可以反映今年的業績表現有多強勁。

My follow-up question is, as you're focused on improving your profitability and not focusing on onetime cost out, how are you ensuring guardrails to take permanent cost out while keeping the customer experience intact? In other words, what kind of ways are you looking to take permanent cost out while still maintaining your top line and adjusted EBITDA?

我的後續問題是，由於您專注於提高盈利能力而不是一次性成本，您如何確保在保持客戶體驗完好的同時消除永久性成本？換句話說，您希望透過什麼方式來消除永久性成本，同時仍維持您的營業收入和調整後的 EBITDA？

Yes, it's a good question, and maybe I'll turn it over to Sabrina for some specifics. But I can tell you, Sabrina has been here about 90 days now. And the discipline she's brought to the entire organization on cost controls has been a great focus for all of us. And -- Sabrina, maybe you want to talk about a couple of the findings you found and how we're not focused on onetime?

是的，這是一個很好的問題，也許我會把它交給薩布麗娜來具體了解一下。但我可以告訴你，薩布麗娜已經來這裡大約 90 天了。她為整個組織帶來的成本控制紀律一直是我們所有人關注的重點。而且——薩布麗娜，也許你想談談你發現的幾個問題以及我們為什麼不只專注於一次性的事情？

Yes. And I'll start at the highest level. I talked about last quarter and again this quarter, that we're really working on a change in mindset. That's the most important thing. Also, as I've articulated, our goal is not just about cost cutting. Our goal is to leverage SG&A.

是的。我將從最高級別開始。我在上個季度和本季都談過，我們確實在努力改變思維方式。這是最重要的事。此外，正如我所闡述的，我們的目標不僅僅是削減成本。我們的目標是利用銷售、一般和行政費用 (SG&A)。

So we're very much setting the stage, building the strong foundation right now. This year but as we grow sales, we can manage SG&A well and still deliver leverage that will help operating margin expansion. So it's not all about cutting and cutting. It's about managing it well to get high returns and help drive our business growth going forward.

因此，我們現在正在做好準備，建立堅實的基礎。但今年，隨著銷售額的成長，我們可以很好地管理銷售、一般和行政費用，並且仍然可以提供有助於擴大營業利潤率的槓桿。所以這不僅僅是切割和切割的問題。重要的是管理好它以獲得高回報並幫助推動我們未來的業務成長。

Simeon Gutman, Morgan Stanley.

摩根士丹利的西蒙古特曼。

Joel, the top line journey, I realize Phase 3 is still a ways away to return to growth. As far as the pieces that you're putting in place now, can you go to the baseball analogy? Are you in the innings? Or you still haven't even started in terms of the repositioning the brands and product assortment, anything front-end customer facing?

喬爾，在營收旅程中，我意識到第三階段距離恢復成長還有一段距離。就您現在所安排的部分而言，您能用棒球來打個比方嗎？你在局中嗎？或者您甚至還沒有開始重新定位品牌和產品組合，或是任何面向前端客戶的工作？

Yes. Look, Simeon, great question. I think to answer the baseball analogy, it depends on how you're looking at it. From your guys' perspective on the outside, you would say we haven't even started, you haven't seen it. But I'll tell you, inside we're already beginning to identify several levers of growth.

是的。瞧，西緬，這個問題問得好。我認為回答棒球類比取決於你如何看待它。從你們外在的角度來看，你們會說我們甚至還沒開始，你們還沒看到它。但我要告訴你，我們已經開始發現幾個成長槓桿。

We got to get better at, one voice to our customer. We're an omnichannel retailer. And I think that's a real opportunity. Our marketing being more solutions-oriented. We're starting to look at a lot of product innovation, which brings newness and differentiation. The North Star project work is underway.

我們必須做得更好，用同一個聲音向客戶傳達訊息。我們是一家全通路零售商。我認為這是一個真正的機會。我們的行銷更加重視解決方案。我們開始關注大量產品創新，它們帶來新穎性和差異化。北極星計畫工作正在進行中。

And so all those put together are really starting to bubble up a lot of ideas on the organization. And just like in Phase 1 on the cost cutting, we started with really looking at all the opportunities and Phase 2 has been about implementing and executing. We're doing the same on the growth side, Simeon, right? Now we're gathering the ideas, looking at all of them and then we're going to put them through a lens of both test and learn, backed up with data and analytics to ensure they really produce profitable growth for us.

所以所有這些放在一起確實開始為組織帶來很多想法。就像第一階段的成本削減一樣，我們首先認真審視所有機會，而第二階段則是實施和執行。西緬，我們在成長方面也做著同樣的事情，對嗎？現在，我們正在收集這些想法，對它們進行全面審查，然後透過測試和學習來檢驗它們，並透過數據和分析來確保它們真正為我們帶來獲利成長。

So the work is starting. You just won't see it yet until we get to the back half and into '26.

所以工作開始了。直到我們進入後半部分並進入 26 年，您才會看到它。

I don't know if I can do a follow-up, but I wanted to ask, when Sabrina was mentioning, I think pricing gaps looking at some things. I don't know if that was in reference to markdowns or actual price gaps that you have versus competitors today. So I wanted to ask what you learned? And are there any things you learned through this. It sounds like deep dive on the merchandising and product side, where there's some opportunities either to drive top line or actually take out costs?

我不知道我是否可以進行跟進，但我想問一下，當 Sabrina 提到時，我認為定價差距正在考慮一些事情。我不知道這是否是指降價或您與當今競爭對手之間的實際價格差距。所以我想問你學到了什麼？透過這件事你學到了什麼嗎？這聽起來像是在商品銷售和產品方面的深入研究，其中是否存在一些機會來推動營業額或實際降低成本？

Yes. Maybe I'll start with that since those were my words and what I meant. So we, as in 2023 started to shift and broaden our assortment to make sure we had enough value for our customers. So that was really important work strategically. The execution was a bit choppy. We're working through that now.

是的。也許我會從那裡開始，因為那是我的話和我的意思。因此，我們從 2023 年開始轉變並擴大我們的產品種類，以確保為客戶提供足夠的價值。所以從戰略上來說這是一項非常重要的工作。執行過程有點不順利。我們現在正在努力解決這個問題。

So we're looking at our full assortment, how we're offering value to our customer at sort of every level of target. And unlike, I would say, importantly, unlike maybe some other retailers, we were already in progress on using all our levers, including pricing as a tool for our margin expansion goals long before tariffs in the current macro situation. So that's sort of how we think about it. We're always balancing what the customer needs with driving the health of our own business.

因此，我們正在研究我們的全部產品種類，如何在各個目標層面為客戶提供價值。我想說的是，與其他一些零售商不同的是，在當前宏觀形勢下，早在關稅之前，我們就已經開始使用所有槓桿，包括定價作為擴大利潤目標的工具。這就是我們對此的看法。我們始終在客戶需求和自身業務健康發展之間尋找平衡。

And certainly, none of this is a one-fits-all approach. We're doing work very surgically down to the SKU level and using a lot of good data and analytics now.

當然，這些都不是萬能的方法。我們正在非常細緻地開展工作直至 SKU 級別，並且現在使用大量優質數據和分析。

Steven Zaccone, Citi.

花旗銀行的史蒂文‧扎科內 (Steven Zaccone)。

I was going to focus on margins. So Sabrina, could you just talk about gross margin a bit, how that performed versus your own expectations? And then in light of some of the new news in the guide, should we still expect gross margin to expand for the full year?

我打算專注於利潤。那麼薩布麗娜，您能否簡單談談毛利率，以及與您的預期相比表現如何？那麼，根據指南中的一些新消息，我們是否仍應預期全年毛利率會擴大？

Yes. So I will start with the quarter. We're pleased with where we came out. We actually -- I think I said in my remarks last quarter that we would start modestly initially on this journey of expanding our margins. So pleased where they came out.

是的。因此我將從本季開始。我們對於結果很滿意。實際上——我想我在上個季度的演講中說過，我們將在擴大利潤率的旅程中以適度的速度起步。很高興他們能來到這裡。

AUC was a powerful lever this quarter. But of course, we're using every lever in the margin mix as we move forward. And it's very much still our goal to deliver gross margin expansion for the year. We feel, given our starting point, given all our work with all our levers including not just the AUC side, but of course, promo markdown clearance, assortment mix, pricing, that is a very important goal for us.

AUC 是本季的一個有力槓桿。但當然，在前進的過程中，我們會利用利潤組合中的每一個槓桿。我們今年的目標仍然是實現毛利率的擴大。我們認為，考慮到我們的起點，考慮到我們所有的工作以及所有槓桿，不僅包括 AUC 方面，當然還包括促銷降價清倉、組合組合、定價，這對我們來說是一個非常重要的目標。

Okay. And then maybe a sales question to follow-up because it sounds like you did a bit of a planogram reset here in the month of May. As you think about that as an impact to sales, could this be a bit of a helper in the near term or the Phase 3 to kind of return to growth is probably going to take a little bit longer?

好的。然後也許會有一個銷售問題需要跟進，因為聽起來您在五月對這裡的規劃圖做了一些重置。當您認為這會對銷售產生影響時，這是否會在短期內有所幫助，或者第三階段恢復成長可能需要更長的時間？

Yes. No, look, I think the cat and dog reset that I spoke to on my prepared remarks was really more to show you the -- a specific example of how we're making progress. And the fact that we pulled that up into the year earlier is certainly will show up as we get into the back half of the year. Remember, every time you do these resets, they're very disruptive. So you don't see an improvement immediately.

是的。不，你看，我認為我在準備好的發言中提到的貓和狗重置實際上更多的是為了向你們展示——我們如何取得進展的一個具體例子。事實上，我們在年初就已將這一目標提前實現，而這一目標在進入下半年後必將顯現出來。請記住，每次進行這些重置都會造成很大的破壞。因此你不會立即看到改善。

But early signs of the cat reset look very promising, and we got to get through the dog reset next week. But we wouldn't have brought these forward if we didn't think they wouldn't be a contributor getting back to growth in the back half of the year. But you shouldn't see it in Q2 as much as you'll see it in future quarters.

但貓咪重置的早期跡像看起來非常有希望，我們必須在下週完成狗狗重置。但如果我們認為這些措施不會對下半年恢復成長起到推動作用，我們就不會提前推出這些措施。但你不應該在第二季度看到它，但在未來幾個季度你會看到它。

(Operator Instructions) Kaumil Gajrawala, Jefferies.

（操作員指示）Kaumil Gajrawala，Jefferies。

Can we maybe just talk a little bit about sort of services versus supplies and different sort of divisions, if you're seeing anything in today's consumer environment that's maybe suggesting that maybe they're fine, which is what we hear from some or that things are weaker and maybe they're delaying pet purchases or maybe they're backing off of discretionary? I'm just curious if as you look at the mix of your revenue, if it tells you anything about where the consumer is.

我們是否可以稍微談談服務與供應以及不同類型的部門，如果您在當今的消費環境中看到任何可能表明他們狀況良好（這是我們從一些人那裡聽到的）的情況，或者情況較弱，也許他們正在推遲購買寵物，或者也許他們正在放棄自由裁量權？我只是好奇，當你查看你的收入組合時，它是否能告訴你消費者在哪裡。

Yes. I mean, look, services has continued to lead our business. And I think it's leading for a couple of reasons. But most importantly, it's leading because, as I said, this is a self-help story here. And we saw significant opportunities for us to increase productivity.

是的。我的意思是，服務一直引領著我們的業務。我認為它之所以處於領先地位有幾個原因。但最重要的是，它具有引領作用，因為正如我所說，這是一個自助故事。我們看到了提高生產力的重大機會。

I gave you a couple of examples on in my prepared remarks, and I'll reiterate the grooming one. We've made several upgrades to the software, so that our pet parents are always seeing openings in calendar. Almost 50% of our customers schedule a grooming appointment online. And if they don't see openings or they have to wait a week or two, they're going to consider somebody else besides Petco.

我在準備好的發言中給了幾個例子，我將重申修飾的例子。我們對軟體進行了多次升級，以便我們的寵物主人總是能在日曆中看到空閒時間。我們幾乎有 50% 的顧客會在網路上預約美容服務。如果他們沒有看到空位或必須等待一兩週，他們就會考慮 Petco 以外的其他人。

So that change has been very positive for us. Grooming is something that probably is more needs-based than, say, supplies. And so we continue to see our more needs-based categories driving our business. And I think that's a testament to how resilient the overall pet category is. And two out of the three of our pet categories are consumable in nature or needs based in nature. So that will continue to drive the business for us.

所以這種改變對我們來說非常正面。梳理可能更多的是基於需求而不是物資。因此，我們繼續看到更多基於需求的類別推動我們的業務。我認為這證明了整個寵物類別的彈性。我們的三種寵物類別中有兩種本質上是可消耗的或基於需求的。因此這將繼續推動我們的業務發展。

Kendall Toscano, Bank of America.

肯德爾·托斯卡諾，美國銀行。

Curious, another kind of follow-up on the category growth. Just given that services, it looks like the growth slowed a little bit, just plus 1% year-over-year. Now curious within services, if there's any callouts in terms of businesses that are still seeing stronger growth versus maybe any that were a little bit softer in the quarter.

好奇，對類別成長的另一種跟進。僅從服務來看，成長似乎有所放緩，僅比去年同期成長 1%。現在，在服務領域，我很好奇，是否有任何跡象表明哪些業務仍然保持著更強勁的成長，而哪些業務在本季可能成長略微疲軟。

Do you want me to start on. Yes. I would say, within services, we have our Vital Care membership business. And as Joel talked about, we're super excited about relaunching that. We're doing a lot of work in the back half, and we'll have the bigger relaunch in '26. We might have some soft relaunch in the back half.

你想讓我開始嗎？是的。我想說，在服務領域，我們有 Vital Care 會員業務。正如喬爾所說的，我們對重新推出這個產品感到非常興奮。我們在後半段做了很多工作，並將在 26 年進行更大規模的重新啟動。我們可能會在後半段進行一些軟重啟。

But because we have been deemphasizing that, while we work to relaunch it, that is within services and others. And that's actually been a bit of a drag. Our core service business without that is actually quite healthy.

但因為我們一直在淡化這一點，所以儘管我們努力重新啟動它，但這是在服務和其他領域內。這確實有點麻煩。即使沒有這些，我們的核心服務業務實際上也相當健康。

Yes. And it continues to get stronger as we make the changes that I just gave an example from the previous question.

是的。而隨著我們做出改變，這種影響會變得越來越強大，正如我剛才從上一個問題中舉的一個例子。

Got it. Okay. That's helpful. And then another question on category sales, which is for consumables with that inflecting negatively during the quarter. Curious if that was in line with expectations and what kind of contributed to the softness there?

知道了。好的。這很有幫助。然後是關於類別銷售的另一個問題，即本季消耗品銷售額出現負面影響。好奇這是否符合預期以及是什麼導致了那裡的疲軟？

Yes. No, that was certainly in line with expectations. And part of the reason we pulled forward the reset is we can see changes that will have for us on having a bigger impact later in the year. But as we continue to clean up promotions that I'd like to call empty calorie, that is kind of self-induced, but we're really pleased with the margin profile and how we're continuing to get that business back on track.

是的。不，這當然符合預期。我們提前重置的部分原因是我們可以看到這些變化將在今年稍後對我們產生更大的影響。但是，隨著我們繼續清理我稱之為空熱量的促銷活動，這有點自我誘導，但我們對利潤率狀況以及我們如何繼續讓業務重回正軌感到非常滿意。

Steve Forbes, Guggenheim.

古根漢的史蒂夫福布斯。

This is Jake on for Steve. A quick question on, I guess, thinking through your wallet share opportunities here. So help us frame -- maybe help us frame up, I guess, what are your most loyal customer cohorts looking for here? It sounds like you guys have a lot of -- done a lot of work on and some exciting opportunities up ahead here. But maybe help us frame maybe in order of magnitude, what your loyal cohorts are looking for here?

傑克代替史蒂夫發言。我想問一個簡單的問題，考慮一下您的錢包份額機會。所以請幫助我們構思—我想，也許請幫我們構思，您最忠實的客戶群在這裡尋找什麼？聽起來你們已經做了很多工作，並且前面還有一些令人興奮的機會。但也許可以幫助我們按數量級來構建，您的忠實追隨者在這裡尋找什麼？

Yes. Look, I think you'll hear more about that from us as we complete our North Star work. We're right in the middle right now of really understanding the customer segments that we believe we can not only win but grow. And so the stage we're in with our North Star work is really doing some qualitative and quantitative analysis of that. And with that, that will really inform everything we do as we focus on growth in the back half of the year. But it's too early here to give you some specifics on the segmentation piece of it.

是的。瞧，我想當我們完成北極星工作時，你會從我們這裡聽到更多關於這方面的資訊。我們現在正處於真正了解客戶群的過程中，我們相信我們不僅可以贏得客戶，而且可以實現成長。因此，我們北極星工作目前所處的階段實際上正在對此進行一些定性和定量分析。有了它，我們就能真正了解下半年所做的一切，專注於成長。但現在就提供有關其細分部分的具體細節還為時過早。

Oliver Wintermantel, Evercore.

奧利佛·溫特曼特爾，Evercore。

I had a question on your leverage ratio. In your deck, you said that you want to achieve below two times. Can you give us a little bit more details on the timing and what do you expect the free cash flow to look like this year?

我對您的槓桿率有疑問。在你的牌組中，你說你想要達成以下兩個目標。您能否向我們提供一些有關時間安排的更多細節，以及您預計今年的自由現金流會是什麼樣子？

Yes. So that is a very important goal that will take some time, and the first step forward is the focus on profitability that we've articulated. So as we increase profit that will fairly bring the ratio back into a better position where we want it. The advantage of driving to this profitability goal is also that it improves free cash flow, obviously. So we're very focused on both, but the profitability is the most important piece of achieving our goals, both on bringing down the leverage ratio and expanding our cash flow over time.

是的。所以這是一個非常重要的目標，需要一些時間才能實現，而第一步就是專注於我們已經闡明的獲利能力。因此，隨著我們增加利潤，該比率將回到我們想要的更好的位置。實現這一獲利目標的優勢顯然還在於它可以改善自由現金流。因此，我們非常關注這兩者，但獲利能力是實現我們目標的最重要部分，既可以降低槓桿率，又可以隨著時間的推移擴大我們的現金流。

Got it. And then on the comp, can you maybe talk a little bit about what the drivers were? Was it mostly transactions or was there some you are offsets, just to level set us there. Thank you.

知道了。然後，在比賽中，您能否稍微談論一下驅動因素是什麼？主要是交易嗎，還是有一些抵消，只是為了讓我們達到同樣的水平。謝謝。

Yes. The strongest driver in the comp this quarter was UPTs and the drag the offset was mostly in transactions. So that's where we'll be really focused as we evolve the marketing message that Joel was talking about and driving traffic back into the store once we have this new setup, add new assortment, then roll out more exciting marketing. That's the big lever that we want to see improve its transactions.

是的。本季公司業績最強勁的驅動力是 UPT，而抵銷的拖累主要在於交易。因此，我們將真正集中精力，不斷改進喬爾所談論的營銷訊息，並在我們有了新的設置、增加了新的商品種類後，將客流重新吸引回商店，然後推出更令人興奮的營銷活動。這是我們希望看到的改善交易的重要槓桿。

Peter Benedict, Baird.

彼得·本尼迪克特，貝爾德。

Curious, just your view on inflation and pricing, what the view is over the balance of this year, what's kind of baked in, whether it be on the commodity front, the food front or I know it was kind of a tariff exposure, but just on those items, what's the outlook in terms of pricing?

好奇，您對通貨膨脹和定價的看法，對今年的平衡有何看法，有哪些影響，無論是在商品方面，食品方面，還是我知道這是一種關稅風險，但就這些商品而言，定價前景如何？

Look, you heard our forecast and that forecast includes us embedding the tariff impact. And I think the tariff side, it's relatively stable, and it's something we're watching consistently, but we haven't seen any strong spikes in inflation year-to-date. But we're certainly watching that piece and seeing where tariffs play out.

瞧，您聽到了我們的預測，該預測包括我們嵌入的關稅影響。我認為關稅方面相對穩定，而且我們也一直在關注，但今年迄今為止我們還沒有看到通膨出現任何強勁飆升。但我們當然在關注這個問題並觀察關稅將如何發揮作用。

Yes. And just to reiterate a little bit what I said, our approach and strategy around pricing started long before any of the choppiness and the noise in the macro. So we are always going to balance what is best for our customer with what is best for our business. And any action we take at pricing, whether after or at times down, is going to be surgical and focused on getting that for both our customers and our business.

是的。我再重申我說過的話，我們圍繞定價的方法和策略早在宏觀經濟出現波動和噪音之前就開始了。因此，我們始終會在客戶利益和業務利益之間尋找平衡。我們在定價方面採取的任何行動，無論是在定價之後還是有時在定價時，都將是精準的，並專注於為我們的客戶和我們的企業實現這一目標。

Okay. That's helpful. And then maybe just a follow-up on. I think somebody may have asked about price gaps. You mentioned that earlier. I was a lot clear. Have you rightly identified price gas places where maybe you were off size? Or have you addressed those? Just curious maybe expand a little more on the price cap comment that you had earlier.

好的。這很有幫助。然後也許只是後續行動。我想有人可能會問到價格差距。您之前提到過這一點。我很清楚。您是否正確識別了可能尺寸不合適的價格區域？還是你已經解決了這些問題？只是好奇，也許可以進一步闡述您之前關於價格上限的評論。

Yes. No, look, we -- I think Sabrina said it in her comments, we're now looking at the SKU level and not just at the category level. And so we've identified opportunities where we took price down. We've identity opportunities where we think there was an opportunity to take some price up. But as Sabrina said, reiterate this has been part of our holistic look at improving the retail fundamentals of the business more than it just being a tariff exercise.

是的。不，看，我們——我認為薩布麗娜在她的評論中說過，我們現在關注的是 SKU 級別，而不僅僅是類別級別。因此，我們發現了降低價格的機會。我們發現了一些機會，我們認為這些機會可以提高價格。但正如薩布麗娜所說，重申一下，這是我們全面改善業務零售基本面的一部分，而不僅僅是一項關稅措施。

But we feel really good about the progress we've made on price and making sure we're able to still deliver value for our customers. It was a really good quarter for us. We feel really good on the long term strategy. The progress we made with leadership team, with phased approach is really working, and I think the Q1 results are a great example of that.

但我們對我們在價格方面取得的進展感到非常滿意，並確保我們仍然能夠為客戶提供價值。對我們來說這是一個非常好的季度。我們對長期策略感到非常滿意。我們與領導團隊分階段取得的進展確實有效，我認為第一季的結果就是一個很好的例子。

This concludes our question-and-answer session. I would like to turn the conference back over to Tina Romani for any closing remarks.

我們的問答環節到此結束。我想將會議交還給蒂娜·羅馬尼 (Tina Romani) 做最後演講。

Fantastic. Thank you, Joel, and Sabrina, and thank you, everyone, for your time and your questions. As always, feel free to reach out to the IR team for any follow-ups. And that concludes today's call.

極好的。謝謝喬爾和薩布麗娜，也謝謝大家抽出時間和提出的問題。與往常一樣，如有任何後續事宜，請隨時聯繫 IR 團隊。今天的電話會議到此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。