Petco Health and Wellness Company Inc (WOOF) 2025 Q2 法說會逐字稿

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

下午好，歡迎參加 Petco 2025 年第二季財報電話會議。（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主管兼財務主管蒂娜·羅馬尼女士。請繼續，女士。

Good afternoon, everyone, and thank you for joining Petco's second 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.

大家下午好，感謝您參加 Petco 2025 年第二季財報電話會議。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.

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。

These risks and uncertainties include those set out in our earnings materials and SEC filings. 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.

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。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。

With that, let me turn it over to Joel.

說完這些，讓我把麥克風交給喬爾。

Good afternoon, everyone, and thank you for joining us today. I'm incredibly proud to share the progress we are making in strengthening the foundation of our operating model and improving our retail fundamentals, while positioning Petco for sustainable, profitable growth.

大家下午好，感謝大家今天的參與。我非常自豪地與大家分享我們在加強營運模式基礎和改善零售基礎方面所取得的進展，同時使 Petco 實現可持續的盈利增長。

We are continuing our transformation journey and pleased we have the confidence to raise our earnings outlook. In addition to the progress we are making on our transformation, this month marks the 60th birthday of Petco, celebrating our rich heritage. In our six-decade history, Petco has been where the pets go for consumables, for grooming, for vet services, for pharmacy and more.

我們正在繼續我們的轉型之旅，並且很高興我們有信心提高我們的獲利前景。除了我們在轉型方面的進展之外，本月還是 Petco 成立 60 週年，慶祝我們豐富的傳統。在我們六十年的發展歷史中，Petco 一直是寵物購買消耗品、美容、獸醫服務、藥房等的地方。

I'm honored to be leading Petco along a talented team as we embark on the next 60 years. As I complete my first year on the ground at Petco, it is gratifying to watch Petco regain confidence and relevancy in the pet sector. I will spend a few minutes later in my prepared remarks outlining what this means and where I'm seeing progress.

我很榮幸能夠帶領 Petco 和一支才華橫溢的團隊邁向下一個 60 年。當我在 Petco 工作的第一年結束時，我很高興地看到 Petco 在寵物行業中重新獲得了信心和相關性。稍後我將花幾分鐘時間在準備好的發言中概述這意味著什麼以及我看到了哪些進展。

Looking to our financial performance in Q2. Sales were in line with our outlook, and we meaningfully improved our profitability, increasing operating income by over $40 million and generating more than $50 million in free cash flow. For the quarter, we delivered $114 million in adjusted EBITDA.

展望我們第二季的財務表現。銷售額符合我們的預期，我們的獲利能力也顯著提高，營業收入增加了 4,000 多萬美元，產生了超過 5,000 萬美元的自由現金流。本季度，我們的調整後 EBITDA 為 1.14 億美元。

This is a true testament to the hard work all the teams of Petco have leaned into. As we enter the back half, we continue to execute on Phase 2 of our transformation and expect to make improvements to our bottom line and overall performance versus last year.

這真正證明了 Petco 所有團隊的辛勤工作。進入下半年，我們將繼續執行轉型的第二階段，並期望與去年相比，我們的底線和整體業績有所改善。

It is with this confidence in our ability to deliver improvements that we are able to raise our guidance, and at the same time, begin thoughtful reinvestment behind the business as we set the stage for Phase 3 of our journey, returning to profitable sales growth.

正是憑藉著對我們實現改進的能力的信心，我們才能夠提高我們的指導，同時，開始對業務進行深思熟慮的再投資，為我們旅程的第三階段奠定基礎，恢復盈利的銷售增長。

As part of this work, our leadership team has been engaged in a North Star project to reimagine every key element of Petco. We've uncovered so many positive aspects about our heritage and identified the details of what our customers expect us to improve and have honed in on Petco's differentiated positioning in the marketplace.

作為這項工作的一部分，我們的領導團隊一直參與北極星項目，以重新構想 Petco 的每一個關鍵要素。我們發現了許多關於我們傳統的積極方面，並確定了客戶期望我們改進的細節，並磨練了 Petco 在市場上的差異化定位。

From a marketing perspective, it quickly became obvious we needed to bring back a more emotional element to how we go to market and connect with pet parents. Our research has told us that we have an amazing heritage that resonates with our customers still today.

從行銷角度來看，我們很快就發現我們需要在行銷和與寵物主人的聯繫中重新加入更多的情感元素。我們的研究表明，我們擁有令人驚嘆的傳統，至今仍能引起客戶的共鳴。

As part of our 60th celebration, we reintroduced our beloved Where the Pets Go tagline, returning to the heart and soul of our brand with a fresh approach designed to increase relevancy. The campaign started in July and fully launched in August. Initial results indicate it is resonating with strong feedback and positive reactions from our customers.

作為我們 60 週年慶典的一部分，我們重新推出了深受喜愛的“寵物去哪裡”標語，以一種旨在提高相關性的全新方法回歸我們品牌的核心和靈魂。該活動於 7 月啟動，8 月全面啟動。初步結果表明，它得到了客戶的強烈回饋和積極反應。

As part of the campaign relaunch, we reintroduced unique in-store events and experiences for all members of pet families. In July, we hosted several experiences like free pet food tasting and Meet the Critters, where families had the opportunities to meet our companion animals while learning from our knowledgeable and friendly pet experts. And personally, one of my favorites, in honor of Shark Week, we hosted a Feed the Sharks event, allowing families to get up close and personal with our freshwater fish.

作為活動重新啟動的一部分，我們為所有寵物家庭成員重新推出了獨特的店內活動和體驗。7 月份，我們舉辦了多項活動，例如免費寵物食品品嚐和與小動物見面，讓家庭有機會與我們的伴侶動物見面，同時向我們知識淵博、友好的寵物專家學習。就我個人而言，我最喜歡的活動之一是，為了紀念鯊魚週，我們舉辦了餵鯊魚活動，讓家庭近距離接觸我們的淡水魚。

Petco truly is where the pets go in real life. The key for us to successfully move to Phase 3, a return to growth, is to bring this to life through compelling marketing, improved merchandising, engaging creative and stronger store execution, giving customers a reason to step away from their screens and shop with their pets.

Petco 確實是寵物在現實生活中去的地方。我們成功進入第三階段，即恢復成長的關鍵是透過引人注目的行銷、改進的商品推銷、引人入勝的創意和更強大的店鋪執行來實現這一目標，讓顧客有理由離開螢幕，帶著寵物一起購物。

While certainly acknowledging we are still in the early days, I'm pleased to share that we have seen positive customer sentiment and engagement around these events on our social channels and sequential increases in our NPS score since the end of last year.

雖然我承認我們還處於早期階段，但我很高興地告訴大家，我們在社交管道上看到了客戶對這些活動的積極情緒和參與度，並且自去年年底以來我們的 NPS 得分也連續上升。

Survey respondents highlighted partner friendliness and helpfulness with an average satisfaction rating above 90%, which speaks to our ability to deliver experiences that pets and their people aren't getting anywhere else.

調查受訪者強調了伴侶的友善性和樂於助人，平均滿意度超過 90%，這表明我們有能力為寵物及其主人提供在其他地方無法獲得的體驗。

In addition, several of our store managers reported people waiting outside our doors before we open for in-store events. This is simply evidence the marketing message is breaking through the clutter and our pet parents want to engage and have in-store experiences with our store partners.

此外，我們的幾位店長報告說，在我們開店舉辦店內活動之前，有人在門外等候。這恰恰證明行銷訊息正在突破混亂，我們的寵物主人希望與我們的商店合作夥伴互動並獲得店內體驗。

Now as I look to Q3, I mentioned earlier that we are going to begin to test our way into Phase 3 and invest back into the business. An important step towards cementing our brand for the future is to invest internally. And next month, I'm looking forward to bringing leaders across the organization together for our Leadership Summit.

現在，當我展望第三季時，我之前提到過，我們將開始測試進入第三階段的方法並重新投資於業務。鞏固我們品牌未來的一個重要步驟是內部投資。下個月，我期待召集整個組織的領導者參加我們的領導力高峰會。

This is an opportunity for our support center and store leaders to come together to not only celebrate our 60th anniversary, but to launch our updated values, and most importantly, align on what a reimagined Petco means for our customers and our plans to execute on that vision.

這是我們的支援中心和商店領導者齊聚一堂的機會，不僅可以慶祝我們的 60 週年紀念日，還可以推出我們最新的價值觀，最重要的是，就重新構想的 Petco 對我們的客戶意味著什麼以及我們實現這一願景的計劃達成一致。

Throughout my career, I found that company culture is the baseline for success. Since joining Petco, I've been incredibly proud of the culture that exists today centered around pets first. We are harvesting that cultural heritage with an equal focus on operating discipline and a winning mindset. It has been rewarding to watch the collective commitment and energy grow as we instill a One Petco Way attitude across the entire organization and set the foundation for the next stage of our journey.

在我的整個職業生涯中，我發現公司文化是成功的基礎。自從加入 Petco 以來，我一直對如今以寵物為中心的企業文化感到無比自豪。我們正在繼承和發揚這文化遺產，同時同樣注重經營紀律和必勝心態。當我們在整個組織中灌輸「一個 Petco 之道」態度並為我們下一階段的旅程奠定基礎時，看到集體的承諾和能量不斷增長，這是令人欣慰的。

Alongside culture, driving operational improvements remains in focus, and that was a success story in Q2. During the quarter, we continued to take steps towards strengthening our retail fundamentals. For example, our operations, merchandising, and supply chain teams work together to simplify and optimize our processes that drive inventory accuracy four-wall in-stock and ultimately improve on-shelf in-stock of our entire assortment. These efforts were a contributor to our improved Q2 EBITDA performance. Additionally, we continue to see improvements in both inventory per store and sales per square foot.

除了文化之外，推動營運改善仍然是重點，這是第二季度的一個成功案例。本季度，我們繼續採取措施加強零售基本面。例如，我們的營運、銷售和供應鏈團隊共同努力，簡化和優化我們的流程，提高庫存準確性，最終提高我們整個商品的貨架庫存。這些努力有助於我們提高第二季 EBITDA 業績。此外，我們繼續看到每家商店的庫存和每平方英尺的銷售額都在改善。

In addition to operations, merchandising excellence remains at the forefront of our work. You've heard me talk about allocating more space to our higher productivity SKUs, adding capacity on shelf and improving end-cap displays, all of which just launched over the last few months and are contributing to improved store performance.

除了營運之外，卓越的商品銷售仍然是我們工作的重中之重。您已經聽我談到為更高生產力的 SKU 分配更多空間、增加貨架容量和改進端蓋展示，所有這些舉措都是在過去幾個月內推出的，並且有助於提高商店的業績。

We're also focused on bringing in product newness. For example, we launched our very first product category aimed at humans online and in-stores selectively in response to a customer survey where 90% of our pet parents shared that they are interested in buying pet-themed products. Price under $20, products are designed to be giftable, affordable, and impulse worthy, celebrating the bond between pets and the people who love them.

我們也注重推出新產品。例如，我們根據一項客戶調查結果選擇性地推出了第一個針對人類的線上和線下產品類別，該調查顯示 90% 的寵物主人表示他們有興趣購買寵物主題產品。產品價格低於 20 美元，適合作為禮物贈送，價格實惠，值得購買，頌揚寵物與愛它們的人之間的紐帶。

This is just one example of the merchandise overhaul we are making to reinvent Petco's overall product offering. Over time, you will begin to see newness throughout our entire assortment that will differentiate us from others and surprise our customers with unexpected ideas for their pets.

這只是我們為重塑 Petco 整體產品供應而進行的商品改革的一個例子。隨著時間的推移，您將開始看到我們整個產品系列中的新穎之處，這將使我們與眾不同，並為我們的客戶提供意想不到的寵物驚喜創意。

Moving on to marketing. Last quarter, I spoke to you about the relaunch of our loyalty program, which is a great example of the work that is ongoing to implement a more sophisticated approach to customer segmentation.

繼續進行行銷。上個季度，我與您討論了我們忠誠度計劃的重新啟動，這是我們正在進行的實施更複雜的客戶細分方法的一個很好的例子。

The new program will feature personalized rewards with a retention focus designed to strengthen long-term relationships throughout the pet life cycle. More to come in 2026, and I'm pleased with the strategic customer insights our teams are utilizing to guide the development of the program and the enhanced customer experience it will ultimately deliver.

新計劃將以個人化獎勵為特色，並專注於保留，旨在加強寵物整個生命週期的長期關係。2026 年將會有更多舉措，我很高興看到我們的團隊利用策略客戶洞察來指導該計劃的開發以及最終將提供的增強的客戶體驗。

As we've talked, we do not expect progress to be linear. And it's also important to note that some of the early top line progress is masked by areas where we still have opportunity for improvement or the need to further sunset prior behaviors and implement new Petco defined go-forward operating principles. For example, in-store services growth is stronger than the total reported figure as we temporarily deprioritize our paid loyalty program ahead of the relaunch in 2026.

正如我們所說的，我們並不期望進步是線性的。值得注意的是，一些早期的營收成長被我們仍有改進空間的領域或需要進一步終止先前行為並實施 Petco 新定義的未來營運原則的領域所掩蓋。例如，由於我們在 2026 年重新推出付費忠誠度計劃之前暫時降低了該計劃的優先級，店內服務的增長強於報告的總體數字。

Similarly, consumables performance in stores is stronger than the total reported figure as underlying improvements in stores is offset by the softness in e-comm as we retool that channel. And finally, as we look to Q3, it's important to remember we are lapping our toughest compare from a comparable sales perspective.

同樣，商店中消耗品的表現要強於報告的總體數字，因為隨著我們重新調整該管道，商店中潛在的改善被電子商務的疲軟所抵消。最後，展望第三季度，重要的是要記住，從可比銷售角度來看，我們正在進行最艱難的比較。

Most importantly, we believe our stores, together with our comprehensive services offering are Petco's differentiator in the market long term, and this is where our initial transformation efforts have been concentrated and our success has been seen.

最重要的是，我們相信我們的商店以及我們提供的綜合服務是 Petco 在市場上的長期差異化因素，這也是我們最初的轉型努力集中的地方，並且我們已經看到了成功。

That said, while we have intentionally concentrated our Phase 2 efforts on improving our physical store fleet, given they represent the vast majority of our sales, we have a tremendous opportunity to continue to enhance our omnichannel customer experience.

話雖如此，雖然我們有意將第二階段的努力集中在改善實體店陣容上，但考慮到實體店占我們銷售額的絕大部分，我們仍有巨大的機會繼續提升全通路客戶體驗。

We recently welcomed a new leader for our e-commerce channel, and he has already identified several opportunities. I look forward to spending more time personally with the digital team to eliminate barriers and drive improvements with the goal of delivering a seamless omni experience that our customers are excited about. And we can then increase our marketing efforts to invite new customers back to petco.com.

我們最近迎來了電子商務管道的新領導，他已經發現了幾個機會。我期待親自花更多時間與數位團隊一起消除障礙並推動改進，以期提供讓客戶興奮的無縫全方位體驗。然後我們可以加大行銷力度，邀請新客戶重返 petco.com。

Before I wrap up my thoughts and turn to Sabrina to share our financial details, I want to specifically comment on Phase 3 growth. While our strategy thus far has been intentional to give up certain sales, these decisions are making us more profitable, which allows us to begin to invest back into the business. The speed at which everyone worked to get us to this point is gratifying, and the work I'm seeing internally for the future is promising.

在我結束我的想法並讓薩布麗娜分享我們的財務細節之前，我想特別評論一下第三階段的成長。雖然迄今為止我們的策略是有意放棄某些銷售，但這些決定使我們更有利可圖，這使我們能夠開始重新投資於業務。每個人努力工作以達到這一點的速度令人欣慰，而且我看到內部對未來的工作充滿希望。

Growing sustainable sales the right way takes time. And it also takes a company that has discipline, a positive attitude, a winning can-do mindset, and a commitment to merchandise differentiation. I've shared examples of each with you today. We have begun to order new merchandise and are working now to sell through our existing inventory. I'm confident you'll be excited about what is coming.

以正確的方式增加永續銷售需要時間。它還需要一家有紀律、積極態度、必勝信念和致力於商品差異化的公司。我今天已經與大家分享了每個例子。我們已經開始訂購新商品，目前正在努力銷售現有庫存。我相信你會對即將發生的事情感到興奮。

And please know that while our merchandise overhaul is happening, all the wheels are in motion with our marketing, operations, services, and digital teams to move ahead with speed and rigor.

請注意，在我們的商品改革進行的同時，我們的行銷、營運、服務和數位團隊也在全力以赴，以快速和嚴謹的方式向前邁進。

While this is in motion, we expect the bottom line improvements to continue and further provide the necessary strengths to return Petco to growth. In closing, I'm incredibly proud of the work the teams have accomplished in my first year at Petco, while acknowledging at the same time, more work is ahead.

在此過程中，我們預計底線改善將繼續，並進一步提供必要的優勢，使 Petco 恢復成長。最後，我對團隊在加入 Petco 的第一年所取得的成就感到無比自豪，但同時也承認，未來還有更多的工作要做。

I'm looking forward to our national meeting next month and engaging directly with our store general managers, vet leadership teams, and leaders throughout our support centers. We are bringing everyone together to make sure the message is consistent, the focus is sharp, and the urgency is universal.

我期待著下個月的全國會議，並直接與我們的商店總經理、獸醫領導團隊以及各個支援中心的領導進行交流。我們將大家聚集在一起，以確保訊息的一致性、焦點的明確性和迫切性具有普遍性。

We must be known as a company that celebrates amazing pet experiences, creates great strategies and delivers on our promises both internally as well as externally. We will accept nothing less. The initiatives planned for the back half will continue to move our transformation forward, and I look forward to sharing updates as we progress.

我們必須成為一家頌揚奇妙的寵物體驗、制定出色策略並在內部和外部兌現承諾的公司。我們不會接受任何低於這個標準的。下半年計畫採取的措施將繼續推動我們的轉型，我期待分享進展。

With that, I'll hand the call over to Sabrina to take you through the specifics of our strong second quarter results and share the details of what we plan to accomplish over the balance of 2025. Sabrina?

接下來，我將把電話交給薩布麗娜，向大家介紹我們第二季度強勁業績的具體情況，並分享我們計劃在 2025 年剩餘時間實現的目標的細節。薩布麗娜？

Thank you, Joel. Good afternoon, everyone. I'm pleased to share our continued progress on strengthening our economic model. As we've discussed with you previously and in line with our goals laid out at the start of the year, we are executing with intention to build a strong foundation from which to grow. This means expanding our gross margins and leveraging SG&A, resulting in improved profit, cash flow, and overall returns.

謝謝你，喬爾。大家下午好。我很高興與大家分享我們在加強經濟模式方面取得的持續進展。正如我們之前與您討論過的，並且根據我們年初制定的目標，我們正在有意地建立堅實的發展基礎。這意味著擴大我們的毛利率並利用銷售、一般及行政費用，從而提高利潤、現金流量和整體回報。

Our teams are moving with urgency as we execute against this phase of our transformation, and our second quarter results reflect our continued progress. In line with our outlook, net sales were down 2.3%, with comparable sales down 1.4%.

我們的團隊正在緊急行動，執行這一轉型階段，第二季的業績反映了我們不斷取得的進展。與我們的預期一致，淨銷售額下降 2.3%，可比銷售額下降 1.4%。

As a reminder, the difference between comp sales and net sales is driven by the 25 net store closures in 2024 and the additional 10 net closures year to date, bringing our US store count at the end of the second quarter to 1,388. It's worth noting, on a two-year basis, comparable sales improved 130 basis points from Q1 to Q2, driven by improvement in our store performance.

提醒一下，可比銷售額和淨銷售額之間的差異是由於 2024 年淨關閉 25 家門店以及今年迄今為止另外淨關閉 10 家門店，使我們在第二季度末的美國門市數量達到 1,388 家。值得注意的是，從兩年來看，受門市業績改善的推動，第二季可比銷售額從第一季提高了 130 個基點。

Our top line results primarily reflect the decisions we are making to move away from unprofitable sales, shifting instead to disciplined promotional strategy, better retail execution and enhanced customer experience. This work resulted in gross margin expansion of more than 120 basis points versus last year to 39.3%, with gross margin in both products and services expanding once again this quarter.

我們的營收績效主要反映了我們所做的擺脫無利可圖的銷售、轉向嚴謹的促銷策略、更好的零售執行和增強的客戶體驗的決定。此項工作使毛利率較去年同期擴大超過 120 個基點，達到 39.3%，本季產品和服務的毛利率均再次擴大。

Similar to Q1, gross margin expansion was driven by a more disciplined approach to both average unit costs and average unit retail, including stronger guardrails and the deployment of more disciplined processes to effectively manage our pricing and promotional strategies. It's also worth noting that there was minimal tariff impact in the second quarter.

與第一季類似，毛利率的成長得益於對平均單位成本和平均單位零售採取更嚴格的方法，包括更強有力的防護措施和部署更嚴格的流程以有效管理我們的定價和促銷策略。另外值得注意的是，第二季關稅的影響微乎其微。

Moving to SG&A. For the quarter, SG&A decreased $36 million below last year and leveraged more than 150 basis points. As we've discussed previously, our management of expenses is not simply a one-time cost-cutting exercise, but rather a fundamental shift in mindset around how we operate, and that new rigor is evident in our results.

轉向銷售、一般及行政費用 (SG&A)。本季度，銷售、一般及行政費用較去年同期減少 3,600 萬美元，槓桿率超過 150 個基點。正如我們之前所討論的，我們的費用管理不僅僅是一次性的成本削減措施，而是我們運作方式的根本性思維轉變，這種新的嚴謹性在我們的結果中得到了充分體現。

A little over a quarter of the $36 million improvement year over year came from employee benefits optimization work. Over the last several months, we conducted a comprehensive review that resulted in meaningfully improved actuarial results. We recognize the benefit of all this work as we trued up our reserves to the semi-annual actuarial report in the second quarter.

與去年同期相比，3,600 萬美元的增幅中，略高於四分之一來自員工福利優化工作。在過去的幾個月裡，我們進行了全面的審查，並取得了顯著的精算結果改善。當我們在第二季將儲備金與半年精算報告進行核對時，我們認識到了所有這些工作的好處。

More efficient store labor and operations expense, along with expense management across the board, drove the remainder of the improvement. Though notably, marketing expenses were about flat on a year-over-year basis in the quarter. While there is more work ahead, we're pleased with the progress we've made to adopt a more disciplined mindset.

更有效率的商店勞動力和營運費用以及全面的費用管理推動了其餘的改進。值得注意的是，本季的行銷費用與去年同期相比基本持平。雖然還有更多的工作要做，但我們對採取更嚴謹的思維方式所取得的進展感到滿意。

Our expanded gross margin and expense leverage resulted in a $41 million increase year over year in operating profit to $43 million. Adjusted EBITDA increased $30 million to $114 million and expanded nearly 220 basis points to 7.6% as a percent of sales.

我們擴大了毛利率和費用槓桿，使營業利潤年增 4,100 萬美元，達到 4,300 萬美元。調整後的 EBITDA 增加了 3,000 萬美元，達到 1.14 億美元，佔銷售額的百分比增加了近 220 個基點，達到 7.6%。

Moving to the balance sheet and cash flow. Inventory continues to be well-managed, with ending inventory 9.5% below last year, all while achieving higher in-stocks for our customers. Free cash flow for the quarter was over $50 million, and year-to-date was about $10 million. Both the quarter and year to date were well above the prior year. We ended the quarter with a cash balance of $190 million and total liquidity of $684 million, including the availability on our undrawn revolver.

轉到資產負債表和現金流量表。庫存繼續得到良好管理，期末庫存比去年同期低 9.5%，同時為我們的客戶實現了更高的庫存。本季的自由現金流超過 5,000 萬美元，年初至今的自由現金流約為 1,000 萬美元。本季和今年迄今的表現均遠高於去年同期。本季末，我們的現金餘額為 1.9 億美元，總流動資金為 6.84 億美元，其中包括未提取的循環信貸額度。

And now turning to our outlook for the full year. We are raising our adjusted EBITDA outlook for 2025. We now expect adjusted EBITDA to be between $385 million and $395 million, an increase of roughly 16% at the midpoint.

現在來談談我們對全年的展望。我們上調了 2025 年調整後 EBITDA 預期。我們現在預計調整後的 EBITDA 將在 3.85 億美元至 3.95 億美元之間，中間值成長約 16%。

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 store closures in 2024 and 2025. It's important to note that the impacts of tariffs will become sequentially more meaningful as we move through the back half.

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 2024 年和 2025 年門市關閉的影響。值得注意的是，隨著我們進入下半年，關稅的影響將變得越來越顯著。

Additionally, the significant progress we've made during the first half against strengthening our economic model and improving our earnings profile provides us the flexibility to selectively invest behind the business where it makes sense as part of our ongoing efforts to set the stage for Phase 3, a return to profitable sales growth.

此外，我們在上半年在加強經濟模式和改善盈利狀況方面取得的重大進展，使我們能夠靈活地選擇性地投資於有意義的業務，這是我們為第三階段（恢復盈利銷售增長）奠定基礎的持續努力的一部分。

For the third quarter specifically, it's important to keep in mind that over the last five years, adjusted EBITDA in the third quarter has been sequentially lower than the second quarter. In line with that historical seasonality, we expect adjusted EBITDA to be between $92 million and $94 million, up nearly 15% year-over-year at the midpoint. We expect net sales to be down low single digits versus the prior year. And as an important reminder, we are lapping the toughest sales compare of the year in the third quarter.

具體來說，對於第三季而言，需要記住的是，在過去五年中，第三季的調整後 EBITDA 一直低於第二季。根據歷史季節性，我們預計調整後的 EBITDA 將在 9,200 萬美元至 9,400 萬美元之間，中位數年增近 15%。我們預期淨銷售額將比上年下降個位數。需要提醒的是，第三季我們將迎來今年最艱難的銷售業績。

With regards to other guidance items. For the full year, we expect depreciation to be about $200 million, net interest expense of approximately $130 million, about 25 net store closures, and approximately $125 million to $130 million of capital expenditures with a greater focus on ROIC.

關於其他指導事項。就全年而言，我們預計折舊約為 2 億美元，淨利息支出約為 1.3 億美元，淨關閉門市約 25 家，資本支出約為 1.25 億至 1.3 億美元，更加重視投資報酬率 (ROIC)。

In closing, Joel spoke about the energy inside the organization. And I wanted to also take a moment to thank all of our teams for the incredible work accomplished to date, the output of which is clearly evident in our strengthening bottom line results. With that, we welcome your questions.

最後，喬爾談到了組織內部的活力。我還想花點時間感謝我們所有團隊迄今為止所完成的出色工作，這些工作的成果在我們不斷增強的底線業績中得到了明顯的體現。我們歡迎您提出問題。

(Operator Instructions)

（操作員指示）

Michael Lasser, UBS.

瑞銀集團的麥可拉瑟。

So it sounds like you're moving closer to Phase 3. Joel, when is a reasonable expectation for us to hold the firm accountable for generating a positive comp? Is that by the fourth quarter of this year? Or is that more likely a 2026 outcome?

聽起來你正在接近第三階段。喬爾，什麼時候我們才可以合理地期望公司要為創造正向的利潤負責呢？是到今年第四季嗎？或者這更有可能是 2026 年的結果？

Thanks, Michael. As I think both of us mentioned, Tina went into detail -- sorry, Sabrina went into detail, third quarter is our hardest compare of the year. And so like I outlined earlier, we are smack in the middle of Phase 2, Michael. And while we are beginning to seed ideas and test and learn as we like to call it for Phase 3, the results will begin to show up in 2026 as it relates to a positive comp. But we will start to work on ideas right now, Michael.

謝謝，麥可。我想我們倆都提到過，蒂娜詳細說明了——抱歉，薩布麗娜詳細說明了，第三季是我們今年最難比較的。正如我之前概述的那樣，我們正處於第二階段的中期，邁克爾。雖然我們才剛開始播下想法、進行測試和學習（我們喜歡稱之為第三階段），但結果將在 2026 年開始顯現，因為它與積極的競爭有關。但是我們現在就開始研究想法，麥可。

Okay. And my follow-up question is, it sounds like the gross margin gains came in part from eliminating some promotional and unproductive activities. Were those mostly online? And is that what drove the weakness in the online segment? And if you were to take away the online channel, would Petco have generated a positive comp in the stores business?

好的。我的後續問題是，聽起來毛利率的成長部分來自於取消一些促銷和非生產性活動。這些大多是在線的嗎？這是否是造成線上業務疲軟的原因？如果您取消線上管道，Petco 是否會在門市業務中產生積極的效益？

Yeah, Michael, I don't want to get into specific segments. But as you can tell from my remarks, we've really been focused on the stores. It is where the majority of our sales are. And so therefore, it was intentional that that's where we start. We see it as the biggest opportunity long term for us, and we wanted to get that underway.

是的，邁克爾，我不想談論具體的部分。但正如你從我的評論中看到的，我們確實一直專注於商店。我們的銷售額主要來自這裡。因此，我們有意從那裡開始。我們認為這是我們長期面臨的最大機遇，我們希望能夠抓住這個機會。

So not only are we pleased in the results the stores are making, but the traction we're getting on e-comm is working as well, but that's been more focused on the bottom line.

因此，我們不僅對商店取得的業績感到滿意，而且我們在電子商務方面取得的進展也同樣有效，但我們更關注的是利潤。

And just to add a little bit to that, Michael. I would say everything Joel said about the stores, ditto. Online last year did have much more promo and stacking that we needed to clean up. So we have -- if you think about -- if you want to think about it between stores and e-comm, there was more cleanup to be done on the e-comm side to be helpful.

我再補充一點，麥可。我想說喬爾關於商店說的一切，同上。去年網路上確實有更多促銷和堆積，我們需要清理。因此，如果您考慮一下，如果您想考慮商店和電子商務之間，那麼在電子商務方面需要做更多的清理工作以提供幫助。

Steven Zaccone, Citi.

花旗銀行的史蒂文‧扎科內 (Steven Zaccone)。

I want to follow up on Michael's question on gross margin. So could you just take a little bit more detail there, how that performed relative to your own expectation? Because it looks like a big beat. And then it sounds like there's some timing aspect with tariffs. So can you just elaborate on that a little bit more, how we should think about gross margin rate in the back half of the year?

我想跟進邁克爾關於毛利率的問題。那麼，您能否更詳細地介紹一下，相對於您自己的預期，它的表現如何？因為它看起來像是一個大節拍。聽起來關稅似乎與時間因素有關。那麼，您能否再詳細解釋一下，我們該如何看待下半年的毛利率？

Yeah. So we have been super focused. From our first call together, we've talked about the economic model and how one of the most important tenets of that is expanding our gross margin on a year-over-year basis for the full year to get our business healthy so that when we do regrow sales, it has a nice flow-through on healthy margins.

是的。所以我們一直都非常專注。從我們第一次通話開始，我們就討論了經濟模式，以及其中最重要的原則之一就是在全年基礎上逐年擴大毛利率，以保持業務健康，這樣當我們重新增長銷售額時，就能在​​健康的利潤率上獲得良好的流通。

So we've been working every lever, AUR, AUC. Within those, every lever, promo, pricing, clearance, markdown to deliver on that gross margin expansion, and we're really pleased how it came through on both merchandise and services in the second quarter.

因此我們一直在努力利用每一個槓桿，AUR，AUC。其中，促銷、定價、清倉、降價等每一個手段都是為了實現毛利率的擴大，我們對第二季商品和服務的毛利率表現感到非常滿意。

When you look forward though, Steve, for sure, tariffs start to impact. So we had almost no tariff impact in Q2. There were some, but it's like, let's call it, rounding. As we go to Q3, it becomes meaningful, and then it becomes even much more meaningful in the fourth quarter.

不過，史蒂夫，當你展望未來時，關稅肯定會開始產生影響。因此，第二季幾乎沒有受到關稅的影響。有一些，但我們稱之為四捨五入。當我們進入第三季時，它變得有意義，然後在第四季度它變得更加有意義。

Okay. Understood. I guess the follow-up then on that is just how do we think about mitigation efforts? And maybe as it relates to top line specifically, how did pricing perform in the second quarter? And what's your view on pricing as we get into the back half of the year?

好的。明白了。我想接下來的問題是，我們如何看待緩解措施？或許就其與營業收入的具體關係而言，第二季的定價表現如何？進入下半年，您對定價有何看法？

Well, we've been doing pricing all year long. So maybe different than a lot of retailers who perhaps are reacting to the second half tariffs. We have been using this vehicle as we came together as a new leadership team from the get-go. So really, there's less of a change in the second half, but will we be using that lever? Of course, we will.

嗯，我們全年都在做定價。因此可能與許多對下半年關稅做出反應的零售商有所不同。從我們組建新領導團隊以來，我們就一直在使用這個工具。所以實際上，下半年的變化較小，但我們會利用這一槓桿嗎？當然會。

But it will be with a consumer-first lens. We are very focused on delivering on a value proposition to our customer. So no change there, but yes, it will continue to be used.

但它將採用以消費者為先的鏡頭。我們非常注重向客戶提供價值主張。所以沒有變化，但是會繼續使用。

Steve Forbes, Guggenheim.

古根漢的史蒂夫福布斯。

This is Jake Nivasch on for Steve. So two questions for me here. One, I think you guys mentioned last time that you were working on some planogram resets. And I wanted to circle back to see if you could provide some updates on the work there? And then I have a follow-up.

我是傑克‧尼瓦施 (Jake Nivasch)，代替史蒂夫。所以我這裡有兩個問題。首先，我想你們上次提到過，你們正在進行一些規劃圖重置。我想再回頭看看您是否可以提供一些有關那裡工作的最新進展？然後我有一個後續問題。

Yeah. I think we were specifically talking about our dog and cat reset back then. And so think about my prepared remarks where I talked about on-shelf availability, better in-stocks, making it easier for our store associates to fill the shelves, which therefore makes them more productive, which makes our stores more profitable.

是的。我想我們當時正在專門談論我們的狗和貓的重置。因此，請考慮一下我準備好的發言，我談到了貨架上的可用性、更好的庫存，使我們的店員更容易填滿貨架，從而使他們更有效率，從而使我們的商店更有利可圖。

So it was very successful. We've completed those resets. You'll continue to see more of those as we move through this year and into next year in other categories. But it's just a great example of the diligence the teams are making to improve the profitability in the stores, improve on-shelf in-stock for our customers and make our stores more customer-friendly.

所以它非常成功。我們已經完成了這些重置。隨著我們進入今年和明年，您將在其他類別中繼續看到更多這樣的內容。但這只是團隊努力提高商店盈利能力、改善客戶貨架庫存以及使我們的商店更加客戶友好的一個很好的例子。

Yeah. Just to tag on to that, as you heard me say, part of our SG&A savings was store labor and operations. And that is exactly what Joel was talking about, that we got a lot of operational benefits that are flowing through in our expense savings.

是的。補充一下，正如您聽到我說的，我們的銷售、一般和行政費用節省的一部分來自商店勞動力和營運。這正是喬爾所說的，我們獲得了許多營運效益，這些效益體現在我們的費用節省上。

You had a follow-up, Steve?

史蒂夫，你有後續行動嗎？

Just a follow-up here. And I know -- yes, but you touched on this a little bit, but I'm curious if you guys can share some more detail around the North Star initiative that you guys have been working on? And maybe it's too early, but curious if you have any updates there?

這裡只是後續內容。我知道——是的，但你稍微談到了這一點，但我很好奇你們是否可以分享一些有關你們一直在努力的北極星計劃的更多細節？也許現在還為時過早，但我很好奇您是否有任何更新？

Yeah. I think we'll certainly give you a more detailed outlook on that as we get into the specifics of Phase 3 and growth. But I can tell you, as we think about Phase 3, there are really four main pillars to it. It's all about delivering amazing store experience. Our partners are pet first, and that's what sets us apart. It's delivering services at scale.

是的。我認為，當我們進入第三階段和成長的具體細節時，我們一定會為您提供更詳細的展望。但我可以告訴你，當我們考慮第三階段時，它實際上有四大支柱。這一切都是為了提供令人驚嘆的購物體驗。我們的合作夥伴首先是寵物，這就是我們的與眾不同之處。它正在大規模提供服務。

Services aren't easy. And in many ways, I think of that as our moat, and that clearly showed up in our North Star work of how important our services were, the ecosystem of interacting between grooming, hospital and center of store is something Petco only can do.

服務並不容易。在很多方面，我認為這就是我們的護城河，這在我們的北極星工作中清楚地表明了我們的服務有多重要，美容、醫院和商店中心之間的互動生態系統是 Petco 才能做到的。

Third pillar, merchandising differentiation, I've alluded to that. I gave you several examples in my prepared remarks, but you're going to see more newness out of us, more surprise and delight. We have to be relevant, no more of set it and forget it. Seasonal categories, pricing, that all comes into the merchandise differentiation.

第三個支柱是商品差異化，我已經提到過這一點。我在準備好的發言中給了你們幾個例子，但你們將會看到我們更多的新事物、更多的驚喜和喜悅。我們必須與時俱進，不能再只是設定了目標然後就忘記了。季節性類別、定價，所有這些都與商品的差異化有關。

And then finally, number four is over time, winning with omnichannel. So those are kind of some of the pillars that are coming out of our North Star work that's going to drive our growth down the road. Thanks, Jake.

最後，第四點是隨著時間的推移，全通路取勝。這些就是我們北極星工作產生的一些支柱，它們將推動我們未來的成長。謝謝，傑克。

Kaumil Gajrawala, Jefferies.

傑富瑞的 Kaumil Gajrawala。

I guess a couple of things. The first is just where we sort of are in the process of the e-commerce sort of pullback and eventual retools, is that sort of complete? And exactly the same question, I guess, on the inventory side. Inventories came down nicely. And so are inventories where you sort of intend them to be now? Or is there some more work to do? But really, like are those two projects kind of mission complete and time to move on, or still more to get done?

我想有幾件事。首先，我們正處於電子商務回調和最終重組的過程中，這個過程是否已經完成？我想，庫存方面也有同樣的問題。庫存大幅下降。那麼庫存現在是否處於您想要的位置？或是有其他工作要做嗎？但實際上，這兩個項目是否已經完成了任務，可以繼續前進了，還是還有更多工作要做？

Yeah, Kaumil, let me take e-comm, and then Sabrina, if you want to chime in on inventories. Look, as I said earlier, it was our intentional focus to start on the stores first in a unique way by us reducing sales in e-comm. Our e-comm channel is actually more profitable today. But the work we've been doing is just getting started and is ongoing. We hired a new leader.

是的，Kaumil，讓我來談談電子商務，然後 Sabrina，如果你想加入關於庫存的內容。你看，正如我之前所說的，我們有意以獨特的方式首先從商店開始，透過減少電子商務的銷售額。如今，我們的電子商務管道實際上獲利更多。但我們所做的工作才剛開始，而且還在持續進行中。我們聘請了一位新領導者。

He's already making a big impact, reducing friction. And quite honestly, we're just improving basic retail 101 operating principles like speed, page load time, appointment scheduling enhancements, improving repeat delivery.

他已經產生了巨大的影響，減少了摩擦。坦白說，我們只是在改善零售業 101 的基本營運原則，例如速度、頁面載入時間、預約安排增強功能、改進重複交付。

Our loyalty program will come in '26. We think we've got plenty of media buying optimization to do and really improve our targeting and personalization. So those are just several examples, but I would say we're in the phase on e-comm of identifying, and now we'll focus on implementing. And then Sabrina, on inventory?

我們的忠誠度計劃將於 26 年推出。我們認為，我們需要進行大量的媒體購買優化，並真正改善我們的定位和個人化。這些只是幾個例子，但我想說我們正處於電子商務識別階段，現在我們將專注於實施。那麼薩布麗娜，關於庫存嗎？

Yeah. With regard to inventory, I mean, yes, we're so proud of the work the teams have done even in the face of tariffs to get the inventory dollars down so far. So we're big on continuous improvement. I believe there's always opportunity, but we don't want to push it too far. We pulled off, as I said, down 9.5 with improving in-stocks at the same time.

是的。關於庫存，我的意思是，是的，我們對團隊在面臨關稅的情況下所做的工作感到非常自豪，他們迄今為止一直致力於降低庫存成本。因此我們非常重視持續改善。我相信機會總是存在的，但我們不想把它推得太遠。正如我所說的，我們實現了 9.5 的下降，同時庫存也在增加。

So our goal is to always have a tight relationship between sales and inventory. And inventory below sales, to me, is always a great thing as long as it's not hurting the customers, and that's what we'll be focused on continuing to deliver.

因此，我們的目標是始終保持銷售和庫存之間的緊密關係。對我來說，只要不損害客戶的利益，庫存低於銷售始終是一件好事，而這正是我們將致力於繼續實現的目標。

Got it. And if I could ask about your commentary on the increasing NPS scores. It's sort of postmortem, what's behind that? Is it just the marketing? Is it what's happening in-store? It just feels, given the way you've laid out the phases, that is something that you'd expect when you're much further along Phase 3 than at this stage. So I'm just curious if there's anything behind that?

知道了。我可以問一下您對不斷提高的 NPS 分數有何評論。這有點像事後分析，背後是什麼？這僅僅是行銷嗎？這是店內發生的事嗎？只是感覺，考慮到您所佈置的階段的方式，當您在第 3 階段比現階段走得更遠時，這是您所期望的事情。所以我只是好奇這背後有什麼事情嗎？

Well, nothing specific. It's a whole host of a lot of improvements. Joe Venezia, who leads our stores organization, the new leadership team has probably been here the longest. And he's made traction in many different areas. We've already had one leadership meeting with the leaders of the stores organization.

嗯，沒什麼特別的。這是一大堆改進。領導我們門市組織的喬·威尼斯 (Joe Venezia) 可能是新領導團隊中任職時間最長的。他在許多不同領域都取得了進展。我們已經與商店組織的領導者舉行了一次領導會議。

We've got another one I talked about coming up next month with all our store general managers and above. And those are just examples of us reinvesting back in our people and really putting effort into the store experience.

我之前說過，下個月我們將與所有門市總經理及以上級別的人員一起舉行另一次會議。這些只是我們重新投資於員工並真正努力改善商店體驗的例子。

And it's clearly beginning to resonate with our customers. It's showing up in the metrics I shared with you. And I really believe it's really important for Petco to have a great store experience. And so that's why we've really leaned in initially with our store partners.

並且它顯然開始引起我們客戶的共鳴。它出現在我與您分享的指標中。我確實相信，對於 Petco 來說，擁有良好的購物體驗非常重要。這就是為什麼我們最初真正依靠我們的商店合作夥伴。

Kendall Toscano, Bank of America.

肯德爾·托斯卡諾，美國銀行。

First thing I wanted to ask was just on the comp, if you could comment on any of the transactions versus AUR trends that you saw during the quarter?

我想問的第一件事是關於公司情況，您是否可以評論本季看到的任何交易與 AUR 趨勢？

Sure. Overall, we're pleased with UPT and basket. Transactions is a place we are very focused on improving. So that's really the biggest opportunity for us. And you heard Joel talk about how we're starting these great efforts on events and making the store fun and doing much more marketing. So we're looking forward to improvement there, but that was the one that held us back in the quarter. Joel, do you want to add anything?

當然。總體而言，我們對 UPT 和籃子感到滿意。交易是我們非常注重改進的一個領域。所以這對我們來說確實是最大的機會。您聽到喬爾談到我們如何開始在活動上做出這些巨大努力，讓商店變得有趣，並做更多的行銷。因此，我們期待這方面的改進，但這正是我們本季發展受阻的原因。喬爾，你還有什麼要補充嗎？

No. I think that really covers it nicely. And as we get towards growth, the real focus will be on starting to invite customers back into Petco, and we shared with you some examples of that with the store experiences.

不。我認為這確實很好地涵蓋了這一點。隨著我們實現成長，真正的重點將放在開始邀請顧客重返 Petco，我們與您分享了一些有關商店體驗的例子。

Okay. That's helpful. And then the other question was just -- so it sounds like there's been a lot of progress in key areas like inventory and in-stocks. And curious just where the biggest remaining execution gaps are that you're working to address before you'd be more confident to shift fully into Phase 3?

好的。這很有幫助。然後另一個問題是——聽起來庫存和存貨等關鍵領域已經取得了巨大進展。您是否好奇，在您更有信心全面進入第三階段之前，您正在努力解決的最大的剩餘執行差距在哪裡？

Well, I think as I alluded to in my prepared remarks that our back half begins to contemplate reinvesting back in the business. So I think it's less about the gaps and it's more about how pleased we are with the progress we've made to date. And that progress gives us the confidence that we will continue to make progress.

好吧，我想正如我在準備好的演講中提到的那樣，我們的後半部分開始考慮重新投資於業務。所以我認為這與差距無關，而是與我們對迄今為止所取得的進展的滿意程度有關。這項進步讓我們有信心繼續進步。

Sabrina talked about inventory. There's always opportunities there. But the teams made such progress that we're beginning to invest. So it's now the shift starts to be talking about those four pillars of growth that I alluded to on a couple of questions ago, that's where our focus is.

薩布麗娜談到了庫存。那裡總是有機會的。但這些團隊取得瞭如此大的進步，以至於我們開始投資。所以現在的轉變是開始談論我在幾個問題之前提到的四大成長支柱，這就是我們的重點。

And just to elaborate on what Joel said, we just think there's such a nice runway here even if you just think about margins alone. So we've been really focused, like we said, on AUC and AUR levers, including inventory management and pricing and promo and markdown and clearance.

為了詳細說明喬爾所說的話，我們認為，即使你只考慮利潤率，這裡的跑道也很好。因此，正如我們所說的那樣，我們一直非常關注 AUC 和 AUR 槓桿，包括庫存管理和定價以及促銷、降價和清倉。

But what's kind of yet to come that we're in the early stages of is we think there's a lot of opportunity in sourcing. We think there's a lot of opportunity in expanding categories like pharmacy, in regrowing over time, our supplies business. So we still have a lot of levers left in front of us, which makes us very excited.

但我們認為，由於我們正處於早期階段，因此在採購方面還有很多機會。我們認為，在擴大藥品等類別以及隨著時間的推移重新發展我們的供應業務方面有很多機會。所以我們面前還有很多槓桿，這讓我們非常興奮。

Simeon Gutman, Morgan Stanley.

摩根士丹利的西蒙古特曼。

Can you talk about number of pet families, can you talk about growing, declining? And then Joel, what are you learning about the families as far as the departments they're shopping, the services they're using you for, anything that's surprising you from when you started?

能談談寵物家庭的數量嗎？您能談談成長和下降的情況嗎？那麼喬爾，就這些家庭購物的部門、他們使用你的服務而言，你了解到了什麼？從你剛開始工作以來，有什麼事情讓你感到驚訝嗎？

Yeah, Simeon, good question. I would say our industry data is showing that the pet space is relatively flat right now. And in fact, for us, as we've intentionally focused on the bottom line rather than the top line, we're really pleased with our performance as we're not giving up that much market share and at the same time, making significant improvement on the bottom line.

是的，西緬，問得好。我想說的是，我們的產業數據顯示，寵物市場目前相對穩定。事實上，對我們來說，由於我們有意關注底線而不是頂線，我們對我們的表現感到非常滿意，因為我們沒有放棄那麼多的市場份額，同時在底線上取得了顯著的改善。

As far as the observations we've made from -- that I've seen, I've been surprised at how many one-time customers we have. And I think that's probably some areas where we were too bottom of the funnel focused on our e-commerce channel as opposed to being more focused on omni customers, lifetime value of customers.

據我觀察，我們有這麼多的一次性客戶，這讓我感到驚訝。我認為這可能是因為我們在某些​​領域過於專注於電子商務管道，而不是更專注於全客戶和客戶的終身價值。

So those are some of the changes we'll make. And we also have a significant amount of customers that shop us for our services only. And we've got an opportunity really there to grow that share of wallet with our customer into some of our other categories, merchandise, improve our repeat delivery capabilities so they use us. So those are just a couple of examples, Simeon, of things we've observed through our -- all our North Star work.

這些就是我們將要做出的一些改變。而且我們也有大量客戶只購買我們的服務。我們確實有機會擴大客戶的錢包份額，讓他們購買我們的其他類別的商品，提高我們的重複交付能力，以便他們使用我們產品。西緬，這些只是我們透過所有北極星工作觀察到的一些例子。

Okay. And then you mentioned like just toggling some inventory, bringing some new stuff in. Is there any -- and I'm sorry if this was asked. Is there any inventory movement, markdown risk associated with changing merchandise mix going forward?

好的。然後你提到就像切換一些庫存，引入一些新東西。有沒有——如果有人問到這個問題，我很抱歉。未來商品組合的改變是否會帶來庫存變動與降價風險？

Yeah, nothing significant, Simeon. I mean, obviously, when you change inventories, optimize inventory, you can tell that Sabrina said that our inventory was nearly down double digits. And that didn't come with a huge inventory risk at all. So look, we got to be disciplined about it, Simeon, and go at it methodically, but I don't see any big inventory risk on the horizon.

是的，沒什麼大不了的，西緬。我的意思是，顯然，當你改變庫存，優化庫存時，你可以看出薩布麗娜說我們的庫存幾乎下降了兩位數。而且這根本不會帶來龐大的庫存風險。所以，西緬，我們必須對此嚴守紀律，有條不紊地進行，但我認為不會有任何大的庫存風險。

And just to underscore that, the teams are really focused on improving the governance and processes around inventory and buys. And we absolutely need more newness for our customers, and we're excited to bring it in. But those buys will be tight and well controlled and seasonal and fast turning. So we intend to manage it with a lot of good process and governance.

需要強調的是，團隊真正專注於改善庫存和採購的治理和流程。我們絕對需要為客戶提供更多新鮮事物，我們很高興能夠將其引入。但這些購買將會很嚴格、控制得很好、具有季節性並且變化很快。因此，我們打算透過許多良好的流程和治理來管理它。

Justin Kleber, Baird.

賈斯汀·克萊伯，貝爾德。

So first off, Joel, you've been talking about cleaning up the empty calorie promos for a handful of quarters. I'm curious if you could help us size the drag to the comp from this activity? If we normalize for what you're doing, I mean, is the business comping up, kind of excluding the cleanup of these promotions?

首先，喬爾，你一直在談論清理幾個季度以來的空洞卡路里促銷。我很好奇您是否可以幫助我們確定此活動對計算機的阻力大小？如果我們對你所做的事情進行規範，我的意思是，業務是否在增加，排除這些促銷活動的清理？

Well, I don't know, that's a little probably too specific to get into. I think it's more important to look at it of where we're at with the progress. And both Sabrina and I commented that Q3 is the toughest compare. So what you can glean from that is we started in on this progress in Q4 of last year. We identified more in Q1 and so on.

嗯，我不知道，這可能太具體了，難以深入探討。我認為更重要的是看看我們目前的進展如何。薩布麗娜和我都表示，第三季是最難比較的。因此，您可以從中了解到，我們從去年第四季就開始取得這項進展。我們在第一季等發現了更多內容。

So as we continue to find opportunities where there were empty calorie sales, we are offsetting those with some of the growth initiatives that are starting to take place. But we still need to get through especially this Q3 and the beginning of the holiday season.

因此，當我們繼續尋找空熱量銷售機會時，我們會透過一些正在開始實施的成長措施來抵消這些機會。但我們仍然需要度過這個第三季和假期的開始。

I was just going to add, Justin, what Joel already said in his remarks, which is what we see under the covers is improvement in our store performance. And that's really important to us because that's the vast majority of our sales. So just to reiterate, that was our first area of focus, and it's just great to see the improvement there. And e-comm is probably six months behind because new leader just started. And as Joel said, identification phase.

賈斯汀，我只是想補充喬爾在他的評論中已經說過的內容，也就是我們看到的我們商店業績的改善。這對我們來說非常重要，因為這是我們銷售額的絕大部分。因此，重申一下，這是我們首先關注的領域，很高興看到那裡的進步。由於新領導剛上任，電子商務可能落後了六個月。正如喬爾所說，這是識別階段。

So we will get there because we know all the levers we need to work. But we're very pleased with what's happened in our stores.

因此，我們將會實現這一目標，因為我們知道我們需要採取的所有措施。但我們對商店的現狀感到非常滿意。

Helpful color. And then just a follow-up on the implied fourth quarter adjusted EBITDA guide. It looks like at the midpoint, if you do the midpoint of your third quarter guidance, you'd be down 2% year over year. So just trying to understand what is driving the decline? Is it more about the tariff headwinds building or more about your intentional investments back into the business as you set the stage for a return to growth?

有用的顏色。然後只是對隱含的第四季度調整後 EBITDA 指南的後續報導。看起來，如果按照第三季指引的中點計算，那麼年減將為 2%。那麼，只是想了解一下導致這種下降的原因是什麼？這更多的是因為關稅阻力加大，還是因為您在為恢復成長奠定基礎時有意重新投資於業務？

Yeah, I mean, we gave ranges. So it kind of depends where you model it and end up. But what I will reiterate about the fourth quarter is definitely, tariffs have the most meaningful negative impact in Q4. Secondly, we're excited because of our strong performance in the first half, we're excited that we get to keep some powder dry in the second half for areas of investments should we deem them worthy of investing.

是的，我的意思是，我們給了範圍。所以這取決於你在哪裡建模以及最終結果。但關於第四季度，我要重申的是，關稅無疑對第四季產生了最顯著的負面影響。其次，我們對上半年的強勁表現感到興奮，我們很高興能夠在下半年為我們認為值得投資的投資領域做好一些準備。

The only thing we have committed to, by the way, is the Leadership Summit that Joel talked about, but we want to keep that dry powder.

順便說一句，我們唯一承諾的事情就是喬爾談到的領導力高峰會，但我們希望保留這種動力。

And then finally, I think it's good to just protect against volatility because I don't think the macro is completely out of the woods. We live in times where there's big news cycles nearly every day. So we feel like we've taken a prudent approach to the back half.

最後，我認為最好只是防範波動，因為我認為宏觀經濟尚未完全擺脫困境。我們生活在一個幾乎每天都有重大新聞的時代。因此，我們覺得我們對後半部採取了謹慎的態度。

Makes perfect sense. Thank you both for your perspective, and best of luck.

非常有道理。謝謝你們的觀點，祝你們好運。

This will conclude our question-and-answer session. I would like to turn the conference back over to Ms. Tina Romani for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議交還給蒂娜·羅馬尼女士，請她做最後發言。請繼續。

Perfect. Thank you so much, Joel and Sabrina, and thank you, everyone, for your time and your questions. We're looking forward to seeing many of you next week. And with that, that concludes our call.

完美的。非常感謝喬爾和薩布麗娜，也感謝大家抽出時間和提出的問題。我們期待下週見到你們。我們的通話到此結束。

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。