Williams-Sonoma Inc (WSM) 2022 Q1 法說會逐字稿

Welcome to the Williams-Sonoma, Inc. Q1 2022 Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor Relations. Please go ahead.

歡迎參加 Williams-Sonoma, Inc. 2022 年第一季度收益電話會議。 （操作員說明）我現在想將電話轉給首席會計官兼投資者關係主管 Jeremy Brooks。請繼續。

Good afternoon, and thank you for joining our first quarter earnings call. I'd like to remind you that during this call, we will make forward-looking statements with respect to future events and financial performance, including guidance for fiscal '22 and our long-term outlook. Although we believe these statements reflect our best estimates and all available information, we cannot make any assurances that these statements will materialize, and actual results may differ significantly from our expectations. The company undertakes no obligation to publicly update or revise any of these statements to reflect events or circumstances that may arise after today's call.

下午好，感謝您參加我們的第一季度財報電話會議。我想提醒您，在本次電話會議期間，我們將對未來事件和財務業績做出前瞻性陳述，包括對 '22 財年的指導和我們的長期展望。儘管我們相信這些陳述反映了我們的最佳估計和所有可用信息，但我們不能保證這些陳述將成為現實，實際結果可能與我們的預期有很大差異。公司不承擔公開更新或修改任何這些聲明以反映今天電話會議後可能出現的事件或情況的義務。

Additionally, we will refer to certain non-GAAP financial measures. These measures should not be considered replacements for and should be read together with our GAAP results. A reconciliation of non-GAAP measures to the most directly comparable GAAP measure, along with an explanation of how and why we use these measures, appears in Exhibit 1 to the press release we issued earlier today. This call should also be considered in conjunction with our periodic and annual filings with the SEC.

此外，我們將參考某些非公認會計準則財務指標。這些措施不應被視為替代我們的公認會計原則結果，而應與我們的公認會計原則結果一起閱讀。非公認會計原則措施與最直接可比的公認會計原則措施的對賬，以及我們如何以及為什麼使用這些措施的解釋，出現在我們今天早些時候發布的新聞稿的附件 1 中。此電話還應與我們向 SEC 提交的定期和年度文件一起考慮。

Finally, the call is being recorded, and a replay will be available on our Investor Relations website.

最後，通話將被錄音，我們的投資者關係網站上將提供重播。

Now I'd like to turn the call over to Laura Alber, our President and Chief Executive Officer.

現在我想把電話轉給我們的總裁兼首席執行官勞拉·阿爾伯。

Thanks, Jeremy. Good afternoon, everyone. We've been looking forward to this release. The first quarter of fiscal '22 represented another quarter of outperformance with a 9.5% comp on the top line with both demand and net sales in line with each other and 19.5% growth on the bottom line to $3.50 per share.

謝謝，傑里米。大家下午好。我們一直期待著這個版本。 '22 財年第一季度代表了另一個季度的優異表現，收入增長 9.5%，需求和淨銷售額相互一致，利潤增長 19.5%，達到每股 3.50 美元。

These results continue to demonstrate the strength of our multibrand portfolio and our team's ability to navigate challenges and outperform. These results are even more impressive when considering that we were up against last year's strong performance with a comp of more than 40%. We are confident in our annual guidance and longer-term goal of $10 billion in revenues by 2024 with growth across our core businesses and within our B2B, marketplace and global initiatives.

這些結果繼續證明我們多品牌組合的實力以及我們團隊應對挑戰和超越業績的能力。考慮到我們以超過 40% 的比例與去年的強勁表現相抗衡，這些結果更加令人印象深刻。我們對我們的年度指導和到 2024 年收入 100 億美元的長期目標充滿信心，我們的核心業務以及我們的 B2B、市場和全球計劃都將實現增長。

Understanding our industry is key to putting our outstanding results in perspective. We operate in a large and fragmented industry that generates more than half of its sales from smaller brick-and-mortar retailers that do not have sophisticated e-commerce capabilities. We are one of the strongest market players, and we believe we have an opportunity to capture more of this $830 billion total addressable market. Our revenues in FY '21 of $8.2 billion represented just about 1% of the opportunity, and we continue to prove our ability to incrementally capture share.

了解我們的行業是正確看待我們傑出成果的關鍵。我們在一個龐大而分散的行業中運營，該行業一半以上的銷售額來自不具備複雜電子商務能力的小型實體零售商。我們是最強大的市場參與者之一，我們相信我們有機會在這個 8300 億美元的潛在市場中佔據更多份額。我們在 21 財年 82 億美元的收入僅佔機會的 1% 左右，我們繼續證明我們有能力逐步獲取份額。

The current economic environment is challenging, but the housing market remains strong. Hybrid work means people will continue to spend more time in their homes, and the rising costs related to gas and travel have historically led people to stay at home to cook and entertain. We believe that these 3 trends will result in continued momentum to outfit and improve the home. And as a company, we are prepared to manage through economic uncertainty. We are a multichannel portfolio of brands with a management team that has expertise and experience in managing through historical times of economic challenge.

當前的經濟環境充滿挑戰，但房地產市場依然強勁。混合工作意味著人們將繼續在家中度過更多時間，而與汽油和旅行相關的成本上升歷來導致人們呆在家裡做飯和娛樂。我們相信這三個趨勢將帶來持續的動力來裝備和改善家居。作為一家公司，我們準備好應對經濟的不確定性。我們是一個多渠道的品牌組合，擁有一支管理團隊，他們在應對經濟挑戰的歷史時期方面擁有專業知識和經驗。

Another large point of change in our industry is the movement of the consumer to purchase online. Further compounding this trend is the arrival of the millennial generation to the household creation stage. In an industry occupied by companies who are behind in developing their digital experiences and capabilities and pure plays that don't have experience running stores, we believe we are well positioned as a digital-first but not digital-only company.

我們行業的另一個重大變化是消費者在線購買的趨勢。千禧一代進入家庭創造階段，進一步加劇了這一趨勢。在一個被那些在開發數字體驗和能力方面落後的公司所佔據的行業中，以及沒有經營商店經驗的純粹公司所佔據的行業中，我們相信我們作為一家數字優先但不僅僅是數字公司的公司處於有利地位。

These macro trends are perfectly aligned with our key differentiators. Our customers continue to look for us and turn to us for our exclusive, inspirational and high-quality products that we are able to value-engineer because of our in-house design capabilities. The benefits of our in-house design capabilities extend far beyond physical product design. We've also been able to design our own supply chain efficiencies and proprietary technology that allowed us -- has allowed our business to be resilient.

這些宏觀趨勢與我們的主要差異化因素完全一致。我們的客戶繼續尋找我們，並尋求我們的獨家、鼓舞人心和高質量的產品，由於我們的內部設計能力，我們能夠對這些產品進行價值設計。我們內部設計能力的好處遠遠超出了物理產品設計。我們還能夠設計我們自己的供應鏈效率和專有技術，使我們能夠 - 使我們的業務具有彈性。

Our channel strategy provides a competitive edge in scaling the business into the future compared to both retail and marketplace-only players. And of course, our values, which are deeply rooted in sustainability, diversity, equity and inclusion, are embedded in our products and central in our actions. These principles will continue to be fundamental to our customers, who have shown us they will use their disposable income and purchasing power to support what is important to them. In fact, in a recent survey released in April, more than half of consumers said they're willing to pay a premium for sustainable products.

與零售和僅市場參與者相比，我們的渠道戰略在將業務擴展到未來方面提供了競爭優勢。當然，我們的價值觀深深植根於可持續性、多樣性、公平和包容性，這些價值觀植根於我們的產品中，並成為我們行動的核心。這些原則將繼續成為我們客戶的基礎，他們向我們展示了他們將利用他們的可支配收入和購買力來支持對他們來說重要的事情。事實上，在最近 4 月發布的一項調查中，超過一半的消費者表示他們願意為可持續產品支付溢價。

All of this, combined with our growth strategies, not only provide for sizable opportunities to grow our core business but also to drive momentum in reaching new customers, geographies and industries. This expansion and diversification of our customer base presents many exciting opportunities to deliver solutions for underserved markets.

所有這些與我們的增長戰略相結合，不僅為發展我們的核心業務提供了可觀的機會，而且還推動了接觸新客戶、地區和行業的勢頭。我們客戶群的擴展和多樣化為服務不足的市場提供解決方案提供了許多令人興奮的機會。

Our B2B business had its largest quarter ever, driving almost $250 million in demand and increasing 53% over last year. We are winning in the space by leaning into our best-in-class in-house product design capabilities to develop products specifically for large contract projects. This, along with the continued expansion of our client base is not only growing our book of business but also allowing us to focus on a wide breadth of client types and industry verticals.

我們的 B2B 業務實現了有史以來最大的季度，推動了近 2.5 億美元的需求，比去年增長了 53%。我們憑藉一流的內部產品設計能力為大型合同項目開發產品，從而在該領域取得成功。隨著我們客戶群的不斷擴大，這不僅增加了我們的業務量，而且使我們能夠專注於廣泛的客戶類型和行業垂直領域。

For instance, in the hospitality industry, we continue to establish ourselves as a trusted partner in the large project space, including recent installs at Marriott's new headquarter hotel. In terms of B2B recognition, in April, we won an award for the Best Booth at the Hospitality Design Expo, which is North America's largest hospitality-focused trade show. Heading into Q2, this business has strong momentum and energy.

例如，在酒店業，我們繼續將自己確立為大型項目空間中值得信賴的合作夥伴，包括最近在萬豪新總部酒店的安裝。在 B2B 認可方面，4 月，我們在北美最大的酒店業貿易展覽會酒店設計博覽會上獲得了最佳展位獎。進入第二季度，該業務具有強勁的勢頭和活力。

Turning to marketing. We are pleased with the performance of our investments. This quarter, we delivered strong top line growth while leveraging our advertising spend. Key drivers of this efficiency include our proprietary in-house platform, which gives us the ability to identify customers who are in the market for home furnishings and ensures we are optimizing the spend per customer through our loyalty program and our cross-brand marketing.

轉向營銷。我們對我們的投資表現感到滿意。本季度，我們在利用廣告支出的同時實現了強勁的收入增長。這種效率的關鍵驅動因素包括我們專有的內部平台，它使我們能夠識別家居市場上的客戶，並確保我們通過忠誠度計劃和跨品牌營銷優化每位客戶的支出。

On the digital front, during the quarter, we focused our efforts on 2 main areas: improving the conversion funnel throughout the customer journey and driving our AUR with enhanced product recommendation functionality and an improved furniture shopping experience.

在數字方面，在本季度，我們將精力集中在兩個主要領域：改善整個客戶旅程的轉化渠道，以及通過增強的產品推薦功能和改善的家具購物體驗來推動我們的 AUR。

On the sustainability front, our ESG leadership continues to distinguish our brands individually and our company as a whole. We are well on our way in our expanded cross-brand commitment to plant 6 million trees through 2023 in partnership with the Arbor Day Foundation.

在可持續發展方面，我們的 ESG 領導層繼續使我們的品牌和整個公司脫穎而出。我們正在與植樹節基金會合作，擴大跨品牌承諾，到 2023 年種植 600 萬棵樹。

Also, we launched an internal award for sustainable innovation. It's called the Williams-Sonoma, Inc. Good By Design Changemaker. This award celebrates associates doing great things across the company in sustainability. And we were recognized for the fifth year as a REPREVE Champion of Sustainability for the use of recycled materials.

此外，我們還為可持續創新設立了內部獎項。它被稱為 Williams-Sonoma, Inc. Good By Design Changemaker。該獎項旨在表彰在公司範圍內為可持續發展做出傑出貢獻的員工。我們連續第五年被公認為使用再生材料的可持續發展 REPREVE 冠軍。

Now I'd like to talk about our global business. We continue our franchise-first strategy, focusing on both retail and digital execution. We are building our franchise presence in markets like the Middle East with 3 new stores opening in Dubai during the quarter and with more global stores coming in 2022.

現在我想談談我們的全球業務。我們繼續我們的特許經營優先戰略，專注於零售和數字執行。我們正在中東等市場建立特許經營權，本季度在迪拜開設了 3 家新店，2022 年還將開設更多全球門店。

Before we get into the brands, I want to take a minute to talk about the supply chain, where we continue to experience delays, challenges and additional costs across our network. We continue to navigate through challenging starts and stops from COVID-related pressures and shortages of raw materials and labor. Nonetheless, we are focused on meeting the expectations of our customers, and we are pleased that our customer satisfaction scores remain high and that we are beginning to see some improvement with in-stock inventory across our brands.

在我們進入品牌之前，我想花一點時間談談供應鏈，我們在整個網絡中繼續遇到延遲、挑戰和額外成本。我們繼續在與 COVID 相關的壓力以及原材料和勞動力短缺的挑戰中度過難關。儘管如此，我們專注於滿足客戶的期望，我們很高興我們的客戶滿意度得分仍然很高，並且我們開始看到我們品牌的庫存有所改善。

And now let's turn to the performance of our brands that comprise our portfolio. Pottery Barn delivered another high-performance quarter with a comp of 14.6% on top of 41.3% last year or 55.9% on a 2-year basis. All channels and product categories contributed to driving incremental demand. Our high-quality proprietary furniture business continues to lead the growth. We see strength across the business in core product, new offerings and our seasonal inventories.

現在讓我們來看看構成我們產品組合的品牌的表現。 Pottery Barn 在去年的 41.3% 或 2 年的 55.9% 的基礎上實現了 14.6% 的業績表現。所有渠道和產品類別都有助於推動需求增長。我們的高品質專有家具業務繼續引領增長。我們在核心產品、新產品和季節性庫存方面看到了整個業務的優勢。

In our stores, we see particular strength in our design services. As we move to Q2 and the summer season, we have further extended these services into outdoor spaces, and our newly remodeled stores continue to outperform expectations with a reimagined store design that has expanded the footprint for displaying lifestyle furniture in store.

在我們的商店中，我們看到了我們設計服務的特別優勢。隨著我們進入第二季度和夏季，我們將這些服務進一步擴展到戶外空間，我們新改造的商店通過重新設計的商店設計繼續超越預期，擴大了在商店展示生活方式家具的足跡。

Moving to West Elm. West Elm delivered a 12.8% comp in the first quarter on top of 50.9% last year or 63.7% on a 2-year basis. Growth in the quarter was driven by strong performance in furniture. Customers responded to new collections and line extensions and incremental sizes and aesthetics. Additionally, new categories such as kids and bath are also fueling incremental growth.

搬到西榆樹。 West Elm 在第一季度實現了 12.8% 的收益，高於去年的 50.9% 或 2 年的 63.7%。本季度的增長是由家具的強勁表現推動的。客戶對新系列和產品線擴展以及增加的尺寸和美學做出了回應。此外，兒童和沐浴等新品類也在推動增長。

Looking forward to Q2, we are particularly excited to launch our expanded B2B West Elm assortment and customer experience, specifically servicing the many small- and medium-sized businesses in the U.S. We are uniquely positioned to offer a broad assortment of full space, performance-led design solutions directly to these customers. This is an important initiative in our long-term strategy to capture additional growth to become a $3 billion brand.

展望第二季度，我們特別興奮地推出我們擴展的 B2B West Elm 產品系列和客戶體驗，專門為美國的許多中小型企業提供服務。我們具有獨特的優勢，可以提供廣泛的全空間、性能-直接為這些客戶提供設計解決方案。這是我們實現額外增長以成為價值 30 億美元的品牌的長期戰略中的一項重要舉措。

Now I'd like to update you on our Pottery Barn Kids and Teen business. In our Q4 call, we talked about the challenges in our children's business driven by supply chain pressure out of Vietnam. This continued into Q1, and the brands ran a negative 3.1% comp. We have seen recovery in inventory in the business. However, our back orders remain at significant levels, and our back order rates -- our creation rates are still higher than last year. As we look to the balance of the year, we expect to see recovery in inventory levels in the back half.

現在，我想向您介紹我們的 Pottery Barn 兒童和青少年業務。在我們的第四季度電話會議中，我們談到了受越南供應鏈壓力驅動的兒童業務所面臨的挑戰。這種情況一直持續到第一季度，這些品牌的銷售額為負 3.1%。我們已經看到該業務的庫存有所回升。然而，我們的延期交貨率仍然很高，我們的延期交貨率——我們的創造率仍然高於去年。當我們展望今年的餘額時，我們預計下半年庫存水平將恢復。

Also impacted by out-of-stocks is our Williams-Sonoma brand with a fourth quarter comp of negative 2.2% following a 35.3% comp last year. Unfortunately, these out-of-stocks were in some key programs that had an outsized impact on our exclusive products. On a 3-year basis, on-hand inventories are down almost 40% in Williams-Sonoma on sales growth of 30%. We are focused on getting more in stock, and we believe we will see the recovery before Q4.

我們的 Williams-Sonoma 品牌也受到缺貨的影響，繼去年同期為 35.3% 後，第四季度的銷售額為負 2.2%。不幸的是，這些缺貨出現在一些對我們的獨家產品產生巨大影響的關鍵項目中。在 3 年的基礎上，Williams-Sonoma 的現有庫存下降了近 40%，銷售額增長了 30%。我們專注於增加庫存，我們相信我們將在第四季度之前看到復蘇。

As part of the Williams-Sonoma brand, our Williams-Sonoma Home business ran a high double-digit comp this quarter and continues to be an opportunity. Given the strength of the Williams-Sonoma brand name, our expertise in the furniture category and the clear opportunity in the high-end home market, we believe that Williams-Sonoma Home is destined to be a product leader of distinctive, design-led, high-quality furnishing.

作為 Williams-Sonoma 品牌的一部分，我們的 Williams-Sonoma Home 業務本季度實現了兩位數的高位業績，並繼續提供機會。鑑於 Williams-Sonoma 品牌的實力、我們在家具類別的專業知識以及高端家居市場的明顯機遇，我們相信 Williams-Sonoma Home 注定會成為與眾不同、以設計為主導、高品質的家具。

And finally, let's not forget about our emerging brands, which include Rejuvenation and Mark and Graham. Together, these businesses ran a 31% comp this quarter, and they continue to outperform. We are confident in these brands and their ability to contribute to the long-term growth of our company. In fact, we believe Rejuvenation, which is on track to generate more than $200 million in revenue this year, has the potential to be our next $1 billion brand.

最後，我們不要忘記我們的新興品牌，包括 Rejuvenation 和 Mark and Graham。這些企業本季度的業績合計為 31%，並且繼續表現出色。我們對這些品牌及其為公司長期發展做出貢獻的能力充滿信心。事實上，我們相信今年有望創造超過 2 億美元收入的 Rejuvenation 有可能成為我們下一個 10 億美元的品牌。

In summary, we are proud of our continued outperformance. As we look to the balance of the year, we remain confident and committed to our guidance of mid- to high single-digit comps with operating margins relatively aligned to fiscal '21. We have a solid lineup of growth initiatives and operational improvements planned for the balance of the year. And as we look further, we are confident in our path to be a $10 billion company by 2024.

總而言之，我們為我們的持續優異表現感到自豪。當我們展望今年的餘額時，我們仍然有信心並致力於我們對中高個位數業績的指導，其營業利潤率與 21 財年相對一致。我們在今年餘下時間計劃了一系列穩固的增長計劃和運營改進。隨著我們進一步展望，我們對到 2024 年成為一家價值 100 億美元的公司充滿信心。

Before I pass the call to Julie to go through the financials in more detail, I want to thank our customers, our employees and our shareholders. We are committed to delivering for all of our stakeholders.

在我打電話給朱莉詳細了解財務狀況之前，我要感謝我們的客戶、員工和股東。我們致力於為所有利益相關者提供服務。

And with that, I'd like to turn the call to Julie.

有了這個，我想把電話轉給朱莉。

Thank you, Laura, and hello, everyone. We are pleased to report another quarter of outstanding financial results with strong top line growth at record profitability levels, including revenue comps of 9.5%, operating margins expanding 120 basis points to 17.1% with gross margin expanding 80 basis points and EPS growing 19.5% to $3.50.

謝謝你，勞拉，大家好。我們很高興地報告另一個季度的出色財務業績，收入增長強勁，盈利水平達到創紀錄水平，包括收入增長 9.5%，營業利潤率擴大 120 個基點至 17.1%，毛利率擴大 80 個基點，每股收益增長 19.5% 至3.50 美元。

Our results are even more impressive considering we were up against our strongest year-over-year compare, and we outperformed against the backdrop of ongoing macro volatility, including continued global supply chain pressures, rising inflation, increasing interest rates and the continued evolution of consumer spending in a post-pandemic world. Our results further validate the demand for our proprietary and sustainable products, the success of our growth strategies and the efficiencies of our operating model, highlighting why we believe we are best positioned to succeed in the short and long term with strong profitable growth.

考慮到我們與去年同期相比最強勁的比較，我們的業績更加令人印象深刻，並且在持續宏觀波動的背景下，包括持續的全球供應鏈壓力、通脹上升、利率上升和消費者的持續發展，我們的表現優於大盤在大流行後的世界中消費。我們的結果進一步驗證了對我們專有和可持續產品的需求、我們的增長戰略的成功以及我們運營模式的效率，突出了為什麼我們認為我們最有能力在短期和長期內以強勁的盈利增長取得成功。

Moving to our first quarter results in more detail. Net revenues grew to nearly $1.9 billion with comparable brand revenue growth at 9.5%, which was in line with our demand comp. And this growth was on top of a 40.4% comp last year for a 2-year stack of 50%. These strong top line results actualized in both channels, including retail at a 14.4% comp, which was an 82.1% 2-year stack despite retail traffic still negative 20% to pre-pandemic levels in 2019. And in e-commerce, we delivered a 7.3% comp on top of a 30.6% comp last year, maintaining our e-commerce mix as a percent of total revenues at 65%.

轉到我們的第一季度結果更詳細。淨收入增長至近 19 億美元，可比品牌收入增長 9.5%，符合我們的需求。這一增長是在去年 40.4% 的比較之上的，而 2 年的增長為 50%。這些強勁的頂線結果在兩個渠道中都實現了，包括零售額為 14.4%，這是 82.1% 的 2 年堆棧，儘管零售流量在 2019 年仍為大流行前水平的負 20%。在電子商務中，我們交付了在去年 30.6% 的基礎上增加了 7.3%，使我們的電子商務組合佔總收入的百分比保持在 65%。

Moving down the income statement. Gross margin came in at a record 43.8%, an 80 basis point expansion over last year, driven primarily by the strength of our merchandise margins where we're able to continue to preserve our pricing integrity without utilizing site-wide promotions. The demand for our full-priced products once again allowed us to more than offset higher product and freight costs while still delivering record margins and strong top line sales.

向下移動損益表。毛利率達到創紀錄的 43.8%，比去年增長 80 個基點，這主要是由於我們的商品利潤率強勁，我們能夠在不利用全站促銷的情況下繼續保持定價完整性。對我們全價產品的需求再次使我們能夠抵消更高的產品和運費成本，同時仍然提供創紀錄的利潤和強勁的頂線銷售。

Occupancy costs came in at 9.9% of net revenues and leveraged 20 basis points, resulting from another quarter of higher sales and lower occupancy dollar growth. Occupancy dollars increased 6.1% to approximately $186 million, which includes the incremental costs from our new East Coast distribution center to support our strong customer demand as well as higher depreciation costs primarily from our capital expenditures to support our e-commerce business. All of this was partially offset by our ongoing retail optimization actions. The occupancy benefits we are seeing from our rent renegotiations and the incremental net closure of 37 stores at the end of 2021 has enabled us to minimize occupancy dollar growth and deliver this leverage.

入住成本占淨收入的 9.9%，槓桿率提高了 20 個基點，這是由於另一個季度的銷售額增長和入住美元增長放緩。入住費用增加 6.1% 至約 1.86 億美元，其中包括我們新的東海岸配送中心為支持我們強勁的客戶需求而增加的成本，以及主要來自我們支持電子商務業務的資本支出的較高折舊成本。所有這些都被我們正在進行的零售優化行動部分抵消了。我們從租金重新談判中看到的入住率收益以及 2021 年底 37 家門店的增量淨關閉使我們能夠最大限度地減少入住率增長並提供這種槓桿作用。

Our SG&A rate was a first quarter low of 26.7%, leveraging 40 basis points over last year, driven primarily by employment and advertising. This leverage was a function of our strong top line performance and operational efficiencies, holding our payroll costs, advertising and general expense growth below sales growth. We are proud of the disciplined culture we have built, which demands efficiency and returns from our spend.

我們的 SG&A 率是第一季度的低點 26.7%，比去年增加了 40 個基點，主要受就業和廣告的推動。這種槓桿是我們強大的頂線業績和運營效率的函數，使我們的工資成本、廣告和一般費用增長低於銷售增長。我們為我們建立的紀律嚴明的文化感到自豪，這種文化要求我們的支出效率和回報。

These results led to our most profitable Q1 ever with operating income growth of 16% to $323 million and an operating margin at 17.1%, our highest non-holiday quarter ever, expanding 120 basis points over last year. This resulted in diluted earnings per share of $3.50, up 19.5% from last year's record first quarter earnings per share of $2.93.

這些結果促成了我們有史以來最賺錢的第一季度，營業收入增長 16% 至 3.23 億美元，營業利潤率為 17.1%，是我們有史以來最高的非假日季度，比去年擴大了 120 個基點。這導致每股攤薄收益為 3.50 美元，比去年第一季度創紀錄的每股收益 2.93 美元增長 19.5%。

On the balance sheet, we ended the quarter with strong liquidity levels with a cash balance of $325 million and no debt outstanding. Our strong liquidity and operating cash flow of almost $185 million during the quarter allowed us to not only fund the operations of the business but to also invest in the business at higher year-over-year levels in the form of $71 million in capital expenditures to pay incremental dividends increasing to over $58 million in the quarter and to repurchase a record $500 million in shares, a 60% year-over-year first quarter increase off of a prior year high.

在資產負債表上，我們以強勁的流動性水平結束了本季度，現金餘額為 3.25 億美元，沒有未償債務。我們在本季度強勁的流動性和近 1.85 億美元的經營現金流使我們不僅能夠為業務運營提供資金，而且還能夠以 7100 萬美元的資本支出形式對業務進行同比更高的投資，以本季度支付的增量股息增加到超過 5800 萬美元，並回購創紀錄的 5 億美元的股票，第一季度較去年同期增長 60%。

These decisions reflect our commitment to maximizing returns for our shareholders. And with our strong and disciplined balance sheet, combined with our expected cash flow strength and our remaining over $1 billion share repurchase authorization, this allows us the flexibility to continue to opportunistically invest in our own stock and drive long-term shareholder returns.

這些決定反映了我們為股東實現最大回報的承諾。憑藉我們強大而嚴謹的資產負債表，加上我們預期的現金流實力和我們剩餘的超過 10 億美元的股票回購授權，這使我們能夠靈活地繼續機會主義地投資於我們自己的股票並推動長期股東回報。

Moving down the balance sheet. Merchandise inventories, which include in-transit inventory, were $1,396,000,000, increasing 28.4% over depressed levels last year. Inventory on hand increased 17.7% over last year. And our units were only up 1% year-over-year, which primarily reflects the mix shift to higher AUR furniture inventory. And on a 3-year basis, our on-hand inventory was down nearly 7% to 2019 pre-pandemic levels as compared to sales that have grown over 50% over the same time frame.

向下移動資產負債表。包括在途庫存在內的商品庫存為 1,396,000,000 美元，比去年低迷的水平增加了 28.4%。庫存比去年增加17.7%。我們的單位同比僅增長 1%，這主要反映了向更高 AUR 家具庫存的轉變。在 3 年的基礎上，我們的現有庫存比 2019 年大流行前的水平下降了近 7%，而同期銷售額增長了 50% 以上。

As a result, given our ongoing higher sales volumes, our continued elevated back order levels and the significant macro supply chain disruptions we are still experiencing, we are still below optimal levels, particularly in our best-selling back-ordered items. And we expect this to continue into the back half of 2022.

因此，鑑於我們持續增加的銷量、持續升高的延期交貨水平以及我們仍在經歷的重大宏觀供應鏈中斷，我們仍低於最佳水平，特別是在我們最暢銷的延期交貨項目中。我們預計這種情況將持續到 2022 年下半年。

Now let me turn to our expectations for the rest of the year and beyond. We remain optimistic in the long-term outlook of the business. As a result, we are reiterating our financial outlook of mid- to high single-digit revenue growth with operating margins relatively in line with 2021. We are confident in our ability to deliver our revenue outlook given the strength of our business year-to-date, the momentum in our growth initiatives such as B2B and our expected sequential improvement in our in-stock inventory levels, enabling us to fill our significant back orders and recognize net revenue and potentially at a higher comp than demand even if demand were to soften as we move throughout the year.

現在讓我談談我們對今年剩餘時間及以後的期望。我們對業務的長期前景保持樂觀。因此，我們重申了中高個位數收入增長的財務前景，營業利潤率與 2021 年相對一致。鑑於我們的業務年復一年的實力，我們對實現收入前景的能力充滿信心日期，B2B 等增長計劃的勢頭以及我們預期的庫存水平連續改善，使我們能夠填補大量延期交貨並確認淨收入，即使需求疲軟，也可能高於需求當我們全年移動時。

From a profitability perspective, we remain confident in our ability to hold our operating margins relatively in line with 2021 despite expected ongoing cost pressures. Like everyone else, we are experiencing higher product costs and supply chain-related costs, including higher freight, and incremental distribution center costs for additional space to support our overall growth and our ongoing mix shift to furniture that is a larger cube.

從盈利能力的角度來看，儘管預期成本壓力持續存在，但我們仍然有能力將營業利潤率保持在與 2021 年相對一致的水平。與其他所有人一樣，我們正在經歷更高的產品成本和供應鏈相關成本，包括更高的運費和增加的配送中心成本，以增加空間以支持我們的整體增長以及我們持續向更大立方體的家具組合轉變。

We are also experiencing higher costs to best serve our customers to get product to them as timely as possible by shipping product from out-of-market distribution centers. And for multiunit orders, we are shipping multiple times to the same customer, which typically would have all been done in one shipment * and an incremental cost to us.

我們也正在經歷更高的成本，以便通過從市場外的配送中心運送產品來最好地為我們的客戶提供產品以盡可能及時地向他們提供產品。對於多件訂單，我們會多次向同一個客戶發貨，這通常會在一次發貨中完成 * 並且會給我們增加成本。

However, because of the power of our operating model, we believe we are best positioned to mitigate these costs in both the short and long term, whether it is the leverage from our higher sales on our path to $10 billion; the accelerating expansion of our highly accretive growth initiatives such as B2B; the growth of our e-commerce business, which operates at a higher margin profile; our strong merchandise margins from the pricing power our proprietary and vertically integrated products provide; our retail optimization efforts, reducing rents and other efficiencies to drive margins more in line with e-commerce; various supply chain efficiencies, including automation and in-stock inventory levels over time; and our continued emphasis on strong financial discipline.

然而，由於我們運營模式的強大力量，我們相信我們最有能力在短期和長期內降低這些成本，無論是我們在通往 100 億美元的道路上更高銷售額的槓桿作用；加速擴展我們高度增值的增長計劃，例如 B2B；我們的電子商務業務的增長，該業務的利潤率較高；我們從我們的專有和垂直整合產品提供的定價能力中獲得了強大的商品利潤；我們的零售優化工作，降低租金和其他效率，以使利潤率更符合電子商務；各種供應鏈效率，包括隨時間推移的自動化和庫存水平；我們繼續強調嚴格的財務紀律。

We continue to believe the combination of all of these opportunities provides several levers we can utilize to drive incremental earnings to offset higher costs. And this is what gives us the confidence to hold our operating margins relatively in line with last year.

我們仍然相信，所有這些機會的結合提供了幾個槓桿，我們可以利用這些槓桿來推動增加收益以抵消更高的成本。這讓我們有信心將我們的營業利潤率與去年保持一致。

In summary, we are pleased with our outperformance this quarter. These results further validate that our key differentiators, our incremental growth strategies and our proven operational execution, combined with an environment where consumers are investing more in their homes, are shifting increasingly online and are prioritizing value and sustainability in their purchases now more than ever before, leave us uniquely positioned to continue to take market share and profitably in this evolving macro environment.

總之，我們對本季度的出色表現感到滿意。這些結果進一步證實了我們的關鍵差異化因素、我們的增量增長戰略和我們經過驗證的運營執行，以及消費者對房屋投資更多的環境，正在越來越多地轉向在線，並且現在比以往任何時候都更加重視購買的價值和可持續性，讓我們在這個不斷變化的宏觀環境中繼續佔據市場份額並盈利。

And this, combined with our strong operating cash flow and liquidity, our operational levers that enable us to help mitigate incremental costs, along with a proven track record of strong financial discipline and a tenured management team with a winning culture, give us the confidence to reiterate our accelerated long-term growth and profitability outlook of $10 billion in revenues by 2024 with operating margins relatively in line with last year and to drive strong financial returns for our shareholders.

再加上我們強大的運營現金流和流動性，我們能夠幫助降低增量成本的運營槓桿，以及強大的財務紀律和具有成功文化的終身管理團隊的良好記錄，使我們有信心重申我們的加速長期增長和盈利前景，即到 2024 年收入將達到 100 億美元，營業利潤率與去年基本持平，並為我們的股東帶來強勁的財務回報。

Finally, I would like to thank our associates for all that they do to make our company great. The commitment, creativity and integrity of our talent is the backbone for the results we continue to deliver.

最後，我要感謝我們的員工為使我們的公司變得更好所做的一切。我們人才的承諾、創造力和誠信是我們繼續取得成果的支柱。

And now I'd like to open the call for questions. Thank you.

現在我想開始提問。謝謝你。

(Operator Instructions) And our first question will come from Seth Basham with Wedbush Securities.

（操作員說明）我們的第一個問題將來自 Wedbush Securities 的 Seth Basham。

Congrats on a set of great results. My question is on the demand outlook. Are you seeing any slowdown in demand as you look into the second quarter here? And how are you considering the demand comp relative to sales comp for the balance of the year?

恭喜取得了一系列出色的成績。我的問題是關於需求前景。展望第二季度，您是否看到需求放緩？您如何考慮今年餘下時間相對於銷售額的需求補償？

Seth, it's Julie. As far as the -- I mean, first of all, the first quarter, we certainly haven't seen it. You could see it in our results with a 9.5% comp on top of the 40% last year with a 50% 2-year stack, and we said that demand is in line with that. When we're talking about the second quarter, I mean, we're really only 3 weeks into the quarter. It's super early. But we have seen some short-term moderation in demand sales within our portfolio of brands, but nothing to the degree that we're hearing others reporting out there at all.

賽斯，是朱莉。至於 - 我的意思是，首先，第一季度，我們當然沒有看到它。你可以在我們的結果中看到它，在去年的 40% 和 50% 的 2 年堆棧之上，9.5% 的補償，我們說需求與此一致。當我們談論第二季度時，我的意思是，我們真的只有 3 週進入該季度。時間超級早。但我們已經看到我們品牌組合中的需求銷售出現了一些短期放緩，但沒有達到我們聽到其他人報告的程度。

And remember, from a net perspective or our actual reported results, we have seen and expect to continue to see sequential improvement in our in-stock inventory levels, enabling us to fill significant back orders and recognize net revenue even if demand were to wane as we move throughout the year. So this, of course, combined with, as we said, our key differentiators, our incremental growth strategies and our operational execution, make us best positioned to outperform even in an evolving macro environment.

請記住，從淨額角度或我們實際報告的結果來看，我們已經看到並期望繼續看到我們的庫存水平連續改善，使我們能夠填補大量延期交貨並確認淨收入，即使需求減弱我們全年都在搬家。因此，正如我們所說，這當然與我們的關鍵差異化、增量增長戰略和運營執行相結合，使我們即使在不斷變化的宏觀環境中也能獲得最佳表現。

Okay. And just to reframe the question, thinking about that delta between demand and sales comps, how much would demand have to slow for you to come in at the low end of your guidance?

好的。只是為了重新構建這個問題，考慮需求和銷售組合之間的差異，需求必須放緩多少才能讓您進入指導的低端？

We haven't disclosed that. But I think, obviously, we have said many times that we have significant amount of backlog that gives us the confidence to move throughout the year to be able to hit our guidance on the year.

我們還沒有透露。但我認為，很明顯，我們已經多次表示，我們有大量的積壓工作，這讓我們有信心全年採取行動，以達到我們今年的指導。

And our next question will come from Adrienne Yih with Barclays.

我們的下一個問題將來自 Barclays 的 Adrienne Yih。

Julie, congratulations on really remarkable results. Laura, so here's -- I guess here is where the macro and kind of your results don't kind of mesh. A couple of days ago, sales of new homes were down about 17% in April, rising prices, higher mortgage rates, et cetera. How do you put what's happening with the overall kind of like the big macro backdrop with your results? And I know that you did -- you went over several things. But is it the millennials that are continuing that home buying where you have really that touch point? And what do you look for in order to see whether the macro might ultimately impact you?

朱莉，祝賀你取得了非凡的成績。勞拉，所以這裡是——我想這是你的結果的宏觀和種類沒有網格的地方。幾天前，由於價格上漲、抵押貸款利率上升等原因，4 月份新房的銷量下降了約 17%。您如何將整體上發生的事情與您的結果相提並論？我知道你做到了——你經歷了幾件事。但是，千禧一代是否會在您真正擁有這種接觸點的地方繼續購買房屋？為了確定宏觀是否最終會影響您，您會尋找什麼？

That's a good question because on my desk today, I got a report from Google with some, I think, pretty fresh data. And here are some interesting stats. Nearly 40% of Americans are pondering a move in 2022, and most hope to buy. The desire for more space is the #1 reason Americans plan to move. Others have certain features in mind. Those features include outdoor space and a large kitchen, also pet friendly, which is really consistent with what we do in all of our brands with the casual lifestyle that we show.

這是一個很好的問題，因為今天在我的辦公桌上，我收到了一份來自谷歌的報告，其中包含一些我認為非常新鮮的數據。這裡有一些有趣的統計數據。近 40% 的美國人正在考慮在 2022 年採取行動，並且大多數人希望購買。對更多空間的渴望是美國人計劃搬家的第一大原因。其他人則考慮到某些功能。這些功能包括戶外空間和一個大廚房，也可以養寵物，這與我們在所有品牌中所做的以及我們展示的休閒生活方式非常一致。

And so there's all sorts of different pieces about the macro you can read negatively. And then there's things like this and the reality that I said in the prepared remarks about people working from home, people learn how to cook. They care more about their homes. They have invested. And now they're moving. They want to move. And when you talk to -- we talked to New York about this, talked to many people. Most people are planning a remodel, or they're planning to move, and that drives our sales more than anything else.

因此，您可以負面地閱讀有關宏的各種不同的部分。然後是這樣的事情，以及我在準備好的關於在家工作的人的評論中所說的現實，人們學習如何做飯。他們更關心自己的家。他們投資了。現在他們要搬家了。他們想搬家。當你和 - 我們和紐約談過這個問題時，和很多人談過。大多數人都在計劃改造，或者他們計劃搬家，這比其他任何事情都更能推動我們的銷售。

And as we also know, the market is so fractured. Let's say I'm wrong and the housing comes in a little -- there's still a lot of room to pick up share because we are so small -- even though we're the leader, we're still so small relative to the total addressable market. And so I just -- I really believe that with our differentiators, which make us really unique, and that, combined with our growth initiatives, they are not just a plan, but you see them actualize. You see us prove it. Now many quarters in a row despite what others might think, we keep proving that we have a big runway on these initiatives. Now those are all things that are really in our favor right now and very real.

而且我們也知道，市場是如此支離破碎。假設我錯了，房子進來了一點——還有很大的空間可以搶占份額，因為我們太小了——儘管我們是領導者，但相對於總數來說，我們仍然太小了可尋址市場。所以我只是 - 我真的相信，憑藉我們的差異化因素，這使我們真正獨一無二，並且結合我們的增長計劃，它們不僅僅是一個計劃，而且你會看到它們實現。你看我們證明了這一點。儘管其他人可能會怎麼想，但現在連續很多個季度，我們不斷證明我們在這些舉措上有很大的發展空間。現在，這些都是現在真正對我們有利且非常真實的事情。

Okay. And then for Julie, always helping to shape the near-end quarter, the quarter that we're in, 2Q. I know you gave sort of long, long-term LRP guidance and then for the year. But how should we think about kind of the trends, the momentum continuing into May? How should we think about gross margin? Should we just think of Q2 as a continuum of what we're seeing here today in Q1?

好的。然後對於朱莉來說，總是幫助塑造即將結束的季度，我們所處的季度，第二季度。我知道你給出了某種長期的、長期的 LRP 指導，然後是一年。但是我們應該如何看待這種趨勢，這種勢頭會持續到 5 月？我們應該如何看待毛利率？我們是否應該將第二季度視為我們今天在第一季度看到的情況的連續體？

Yes. I mean obviously, we're not providing quarterly guidance. But we would say, as we've said before, you need to kind of stick within our band range on the top line that we've said for the year. I would say on the gross margin line, certainly, there could be pressure from supply chain costs that we've been experiencing, like everybody else has. But we're committed on the year to hitting our operating margin relatively in line with 2021, which, as a reminder, is more than 2x where it was 2 years ago. So we feel really good about that. And obviously, we've proven that we can do that with this quarter's results being up 120 basis points.

是的。我的意思很明顯，我們沒有提供季度指導。但我們會說，正如我們之前所說，你需要在我們今年所說的頂線上堅持我們的樂隊範圍。我會說在毛利率線上，當然，我們一直在經歷供應鏈成本的壓力，就像其他人一樣。但我們承諾在這一年將我們的營業利潤率與 2021 年保持一致，提醒一下，這是 2 年前的 2 倍以上。所以我們對此感覺非常好。顯然，我們已經證明我們可以在本季度業績上升 120 個基點的情況下做到這一點。

And our next question will come from Chuck Grom with Gordon Haskett.

我們的下一個問題將來自 Chuck Grom 和 Gordon Haskett。

Congrats on a really tremendous quarter. I just wanted to follow up on Seth's question on the slowing demand comp. Curious when that began in the quarter. And we heard from a lot of retailers that business started to slow in the middle of March. And I know that started for you at that point in time. And I guess curious if it happened across all 4 banners equally or if it was with the PB and West Elm parts of the business where the tickets are greater.

祝賀一個非常棒的季度。我只是想跟進賽斯關於需求放緩的問題。好奇什麼時候開始的。我們從許多零售商那裡聽說，3 月中旬業務開始放緩。我知道那是從那個時候開始的。而且我想很好奇它是否同樣發生在所有 4 個橫幅上，或者是否發生在 PB 和 West Elm 業務的門票更大的部分。

Yes. So I mean I guess I wouldn't read too much into it. As I said before, it's been 3 weeks into the second quarter. Clearly, with our performance in Q1 and the demand in line with net, we don't really see it in Q1. And Q2, it's 3 weeks in. And so I specifically said that it's within our portfolio of brands, so it's not necessarily across all. And we've seen things improve as well. So it's just -- it's very short term, this moderation we have seen. And at the end of the day, because of our net bill and B2B and everything else that we have going from our growth initiatives perspective, we feel very confident in our outlook for the year.

是的。所以我的意思是我想我不會讀太多。正如我之前所說，第二季度已經過去了 3 週。顯然，鑑於我們在第一季度的表現以及與淨值一致的需求，我們在第一季度並沒有真正看到它。第二季度，已經是 3 週了。所以我特別說它在我們的品牌組合中，所以不一定在所有品牌中。我們也看到情況有所改善。所以這只是 - 這是非常短期的，我們已經看到了這種溫和。歸根結底，由於我們的淨賬單和 B2B 以及從增長計劃的角度來看我們所擁有的一切，我們對今年的前景充滿信心。

Okay. Great. And just a quick follow-up would be you've had great success raising prices over the past 12 to 24 months. When we look at recent trends and more particularly demand trends, is there any pushback on higher prices, any demand destruction? It doesn't sound like it, but we're hearing that from other retailers. And I didn't know if you were saying it so far.

好的。偉大的。只需快速跟進，您就可以在過去 12 到 24 個月內成功提高價格。當我們觀察最近的趨勢，尤其是需求趨勢時，是否有任何價格上漲的阻力，是否有任何需求破壞？聽起來不像，但我們從其他零售商那裡聽說過。到目前為止，我不知道你是否這麼說。

No, we haven't seen it. I mean furniture is our biggest growth vehicle. Furniture has been very, very good for us. And so you would think that if there was a problem with big ticket or higher prices or things like that, we'd see that coming down, and we have not. That merch has been very strong for us.

不，我們沒見過。我的意思是家具是我們最大的增長工具。家具對我們來說非常非常好。所以你會認為，如果大票價或更高的價格或類似的事情存在問題，我們會看到它會下降，而我們沒有。那個商品對我們來說非常強大。

And our next question will come from Cristina Fernández with the Telsey Advisory Group.

我們的下一個問題將來自 Telsey 諮詢小組的 Cristina Fernández。

Congratulations also on a really great result. I wanted to ask about promotions. And it definitely looks like a lot of retailers either are starting to get more promotional or expect to be as the year progresses. What is your stance in case -- in the event the industry gets more promotional?

也祝賀一個非常好的結果。我想問一下促銷活動。而且看起來很多零售商要么開始獲得更多促銷活動，要么期望隨著時間的推移進行促銷。你的立場是什麼——如果這個行業得到更多的宣傳？

Thanks, Cristina. It's Lauren. We've definitely seen more promotional environments, especially as you heard about the general softness out there. And it really hasn't changed our stance at all, as you can see by the results we just put up. We made a strategic decision not to do site-wide promotions, and that has not changed. And you can see from pre-pandemic to now, we are a much more profitable business. And this is a structural change for us and one that we continue to see opportunity in once we get out of the supply chain costly year that we're in. There's a lot of things that we expect to have the improvements to our operations, not this year, but into the future.

謝謝，克里斯蒂娜。是勞倫。我們肯定已經看到了更多的促銷環境，尤其是當您聽說那里普遍的柔軟度時。正如您從我們剛剛提出的結果中所看到的那樣，它確實根本沒有改變我們的立場。我們做出了不進行全站點促銷的戰略決定，這並沒有改變。你可以看到，從大流行前到現在，我們是一個更有利可圖的企業。這對我們來說是一個結構性變化，一旦我們擺脫供應鏈成本高昂的一年，我們將繼續看到機會。有很多事情我們希望改善我們的運營，而不是今年，而是未來。

And so we are always looking at turning our inventory, being better at inventory accuracy and getting rid of slow movers. And you're going to constantly see us package those things up and make them really appealing to our customers. So it's very different than wholesale price reductions across the board that you see many using right now.

因此，我們一直在考慮周轉庫存，提高庫存準確性並擺脫慢動作。你會經常看到我們把這些東西打包起來，讓它們真正吸引我們的客戶。因此，它與您現在看到的許多人使用的全面批發降價非常不同。

And our next question will come from Jason Haas with Bank of America.

我們的下一個問題將來自美國銀行的 Jason Haas。

The first is just on a definition question. When you say that demand and net sales were in line with each other, are you referring to the dollar amount? Or is that also the growth rates were in line with each other?

第一個只是關於定義問題。當您說需求和淨銷售額彼此一致時，您指的是美元金額嗎？或者這也是增長率彼此一致？

Relatively one and the same. But yes, I mean, I would focus on the growth rate, but if the growth rates are the same, then the demand -- I mean, the dollars have to be close as well. Yes.

相對來說一模一樣。但是，是的，我的意思是，我會關注增長率，但如果增長率相同，那麼需求——我的意思是，美元也必須接近。是的。

Got it. That's helpful. That makes sense. That's what I thought. In terms of -- I wanted to dig into the advertising expense a little bit. I think there was a point of deleverage through last year and I think in 4Q as well. And I know you called it out as a point of leverage now. So I'm curious, what are you changing there that's different there to drive that leverage?

知道了。這很有幫助。這就說得通了。那正是我所想。就--我想稍微挖掘一下廣告費用。我認為去年有一個去槓桿化點，我認為在第四季度也是如此。我知道你現在把它稱為一個槓桿點。所以我很好奇，你在那裡改變了什麼不同的地方來推動這種槓桿作用？

Yes. I think if you recall, last year, we were basically getting our advertising dollars back to the level they were previously. So in 2020, it was one of the big drivers for cost cuts as we are moving throughout that year. And so as we said all throughout 2021 that we are investing back into advertising for the future, long-term health of the business. And so last year was more of a year of deleverage.

是的。我想如果你還記得，去年，我們基本上把我們的廣告收入恢復到了以前的水平。因此，在 2020 年，隨著我們全年的行動，這是削減成本的主要驅動力之一。正如我們在整個 2021 年所說的那樣，我們正在重新投資於廣告，以實現業務的未來和長期健康。所以去年更像是去槓桿的一年。

And now that we've sort of lapped that, we now are back to more normalized levels of advertising, and we're very happy to see that we were able to generate leverage with the top line sales and our philosophy of ROI on advertising spend. We don't spend advertising to go get customer counts or traffic numbers or -- we do advertising to get a return because we think that's the right thing to do. And so that's what we generated this quarter.

既然我們已經完成了這一點，我們現在又回到了更加正常化的廣告水平，我們很高興看到我們能夠利用頂線銷售和我們的廣告支出投資回報率理念產生影響.我們不會花費廣告來獲取客戶數量或流量數字，或者 - 我們做廣告是為了獲得回報，因為我們認為這是正確的做法。這就是我們本季度產生的結果。

I'd just say also, as a portfolio of brands, we have a big advantage because we're bidding as one. We're not bidding separately. And also, we're looking at what works in one brand and applying it to the other. And that's a huge advantage as a multibrand company that we have.

我還想說，作為一個品牌組合，我們有很大的優勢，因為我們是作為一個品牌競標的。我們不單獨出價。而且，我們正在研究一個品牌的工作原理並將其應用於另一個品牌。作為我們擁有的多品牌公司，這是一個巨大的優勢。

Felix, do you want to -- I know we just stole your thunder. We're so excited about marketing. Do you want to add to what Julie and I already said?

菲利克斯，你想不想——我知道我們只是搶了你的風頭。我們對營銷感到非常興奮。你想補充一下朱莉和我已經說過的話嗎？

No, I think Julie is right. I mean everything we do is ROI-focused. And so when we see the return on investment, even if advertising costs go up, if we see AUR increases and dollars per customer increase, exceed that, we'll invest. So we have that ability to throttle given the business conditions because we manage it in-house and because we're all committed to the op margin growth.

不，我認為朱莉是對的。我的意思是我們所做的一切都以投資回報為重點。因此，當我們看到投資回報時，即使廣告成本上升，如果我們看到 AUR 增加和每位客戶的美元增加，超過這個，我們就會投資。因此，我們有能力根據業務狀況進行節流，因為我們在內部進行管理，而且我們都致力於實現營業利潤率的增長。

And our next question will come from Max Rakhlenko with Cowen and Company.

我們的下一個問題將來自 Cowen and Company 的 Max Rakhlenko。

So first, just if the industry were to slow, what are some tools and strategies that you have to play offense? And then what are some of those initiatives that you alluded to in your prepared remarks?

所以首先，如果這個行業要放緩，你必須採取哪些工具和策略來進攻？然後，您在準備好的講話中提到了哪些舉措？

Yes. So I mean from a leverage perspective, in a downturn, I think, first of all, we just went through this at the beginning of the pandemic. We've all been through it in '08 and '09. And thankfully, we have a lot of the same management team that's here, so we know how to do it. Hopefully, we're not in that situation. Certainly, we're not seeing anything close to that situation today. But we know how to pull back on expenses. We know how to cut inventory, capital, advertising, put a cease to all discretionary spend.

是的。所以我的意思是從槓桿的角度來看，在經濟低迷時期，我認為，首先，我們剛剛在大流行開始時經歷了這一切。我們在 08 年和 09 年都經歷過。值得慶幸的是，我們這裡有很多相同的管理團隊，所以我們知道該怎麼做。希望我們不是那種情況。當然，我們今天沒有看到任何接近這種情況的情況。但我們知道如何縮減開支。我們知道如何削減庫存、資金、廣告，停止所有可自由支配的支出。

On the flip side, to your point about being on the offense, as we're seeing other folks not have the same results as us and here we are with these incredible results and we're seeing that momentum continue, there's lots of opportunities there. I mean advertising is one example where people are pulling out from advertising. That could be an interesting play for us to play. But it really depends. Obviously, it's confidential as to what we want to -- what levers we can pull. But certainly, we can if we're generating the cash flow and the earnings that we are.

另一方面，就你在進攻端的觀點而言，因為我們看到其他人的成績與我們不同，而我們在這裡取得了這些令人難以置信的成績，而且我們看到這種勢頭仍在繼續，那裡有很多機會.我的意思是廣告是人們退出廣告的一個例子。這對我們來說可能是一場有趣的比賽。但這真的取決於。顯然，我們想要做什麼是保密的——我們可以拉動什麼槓桿。但可以肯定的是，如果我們產生現金流和收益，我們就可以做到。

And then in terms of supply chain efficiencies, I think you asked that question as well as your second piece. So there's a lot of things that are getting better. They're still not where they should be. I do want to bring up a couple. So our Sutter Street upholstery operation has cut its lead time down in half from where it was last year. It's still too high, frankly, but we have the best custom quote times, I believe, in the market right now.

然後在供應鏈效率方面，我想你問了這個問題以及你的第二個問題。所以有很多事情正在變得更好。他們仍然不在他們應該在的地方。我確實想養一對。因此，我們的 Sutter Street 室內裝潢業務已將交貨時間比去年縮短了一半。坦率地說，它仍然太高了，但我相信，我們現在擁有市場上最好的自定義報價時間。

In-stock improvement, less out of market, less duplicate shipping, reduction in damages, return rates, utilization of hubs, retail stores to drive efficiencies. I think we talked about this year, we've told you we're putting together -- we're opening a new Arizona distribution center. And we'll have more automation there. That should give us some efficiencies. And eventual reduction of shipping costs in general and reduction of the cost I brought up before of customer accommodations because we've been, and unfortunately, in some cases, with the Vietnam slowdown, so embarrassingly having to tell a customer 1 or 2 or 3x even that their delivery is delayed because of all the problems that we've had due to COVID in some of those countries.

改善庫存，減少缺貨，減少重複運輸，減少損壞，退貨率，利用樞紐，零售店提高效率。我想我們今年談到了，我們已經告訴過你我們正在整合——我們正在開設一個新的亞利桑那州配送中心。我們將在那裡實現更多自動化。這應該會給我們一些效率。最終總體上降低了運輸成本，並降低了我之前提出的客戶住宿成本，因為我們一直在，不幸的是，在某些情況下，越南經濟放緩，所以不得不告訴客戶 1 倍或 2 倍或 3 倍，這很尷尬即使由於我們在其中一些國家因 COVID 而遇到的所有問題，他們的交付也被延遲了。

So it just begins the list of things I think about when you ask me about efficiencies into the future. And I'm excited when I hear about these opportunities because it means we can do better, and that's our mantra, is to just make it better.

所以當你問我關於未來效率的問題時，它只是我所考慮的事情清單的開始。當我聽到這些機會時我很興奮，因為這意味著我們可以做得更好，這就是我們的口號，就是讓它變得更好。

Great. That's helpful. And just very quickly, I don't know if I missed it, but did you call out how your cancel rates are trending? And then I imagine that you check a lot of your competitors, but how do you rate how your lead times are today versus some of your top peers?

偉大的。這很有幫助。很快，我不知道我是否錯過了它，但你有沒有指出你的取消率趨勢如何？然後我想像你檢查了很多競爭對手，但是你如何評價你今天的交貨時間與你的一些頂級同行相比？

As far as cancel rates, they're really low. I mean we haven't seen much movement from week to week, thankfully. I mean the customer is obviously voting with their wallet and they're willing to stay on and work with us to get the product that they want. And so we haven't seen that change at all.

至於取消率，他們真的很低。我的意思是，謝天謝地，我們每週都沒有看到太多的動靜。我的意思是客戶顯然是在用他們的錢包投票，他們願意留下來並與我們合作以獲得他們想要的產品。所以我們根本沒有看到這種變化。

I don't know if you want to talk about the lead times.

我不知道你是否想談談交貨時間。

Lead times. I mentioned the upholstery. It looks like we're significantly lower. Most people have about 100 days. On the other things -- and we have so many different brands, product lines. I can answer on one but not on all of them, so I'll hesitate to say what it is specifically other than it seems based on what the customers are telling us that we're faster. And exciting, we have some new tools that allow us to see what's in stock across brands.

交貨時間。我提到了內飾。看起來我們明顯低了很多。大多數人有大約100天。另一方面——我們有很多不同的品牌、產品線。我可以回答一個問題，但不能回答所有問題，所以我會猶豫說它具體是什麼，而不是基於客戶告訴我們我們更快的內容。令人興奮的是，我們有一些新工具可以讓我們查看各個品牌的庫存。

Yasir, do you want to comment about that?

Yasir，你想對此發表評論嗎？

Yes. I think we've been continuously working on this opportunity of the challenges that we are seeing in inventory. And we have built our in-house, cross-brand, product finding tool that allows us to serve the customers even upfront, especially in the B2B channel. But also when there are situations whether there are gaps and delays, we can quickly find across the brand the right product the customer needs for their design, and it is turning out to be a very, very strong, powerful tool for us.

是的。我認為我們一直在努力利用我們在庫存中看到的挑戰的機會。我們已經建立了我們的內部跨品牌產品查找工具，使我們能夠提前為客戶服務，尤其是在 B2B 渠道中。但是，當存在是否存在差距和延遲的情況時，我們可以在整個品牌中快速找到客戶設計所需的正確產品，這對我們來說是一個非常、非常強大、強大的工具。

And our next question will come from Oliver Wintermantel with Evercore ISI.

我們的下一個問題將來自 Oliver Wintermantel 和 Evercore ISI。

Yes. I had a question regarding the divergence between the Williams-Sonoma and Pottery Barn Kids and Teens versus Pottery Barn and West Elm. Is that -- in your prepared remarks, you said it was out-of-stocks or you don't have enough inventory. Were these the only drivers for the divergence there? And when do you expect that to be getting better? And then on top of that is then would you expect Pottery Barn and West Elm to slow down in the second half? Or could we see then you being at the upper end of the spectrum of your guidance if that Williams-Sonoma and Pottery Barn teen and Kids improves?

是的。我有一個關於 Williams-Sonoma 和 Pottery Barn Kids and Teens 與 Pottery Barn 和 West Elm 之間的分歧的問題。那是 - 在你準備好的評論中，你說它缺貨或者你沒有足夠的庫存。這些是那里分歧的唯一驅動因素嗎？你預計什麼時候會好轉？然後最重要的是，您是否希望 Pottery Barn 和 West Elm 在下半場放慢腳步？或者，如果 Williams-Sonoma 和 Pottery Barn 的 teen and Kids 有所改善，我們是否可以看到您處於指導範圍的高端？

Well, Oliver, I wish I had the crystal ball. We're confident in our guidance is what I'll say again, like Julie has said. In terms of our portfolio of brands, they serve sometimes similar markets but often different and -- life stages and product types. The product types that Kids and Teen serves were allotment -- many more were from Vietnam, unfortunately, furniture, and big backbone of that business is the furniture. And we all know what happened in Vietnam with the full shutdown.

好吧，奧利弗，我希望我有水晶球。我們對我們的指導充滿信心，就像朱莉所說的那樣，我會再說一遍。就我們的品牌組合而言，它們有時服務於相似的市場，但往往不同——生命階段和產品類型。兒童和青少年服務的產品類型是分配的——更多的是來自越南，不幸的是，家具，而該業務的主要支柱是家具。我們都知道越南完全關閉時發生了什麼。

So it's been the one that has had the most out-of-stocks, the highest back orders, still continues to have the highest back order create rates versus Pottery Barn and West Elm have seen more recovery in their inventory. You can measure that by all the numbers we look at. And so that's been an advantage to them.

因此，它是缺貨最多、延期交貨率最高的公司，但仍繼續擁有最高的延期交貨率，而 Pottery Barn 和 West Elm 的庫存回升幅度更大。您可以通過我們查看的所有數字來衡量這一點。所以這對他們來說是一個優勢。

And then Williams-Sonoma is in a totally different business: kitchenware, housewares, furniture. So they don't have the benefit of the strong furniture trend that we have. And as I said earlier, they had some out-of-stocks that were pretty unfortunate. And unfortunately, they affected the amount of exclusives that we presented to the customer, which is a big part of our strategy. You've heard us talk about that before. And I'm optimistic that we are going to get them in this year before holiday.

然後 Williams-Sonoma 從事完全不同的業務：廚具、家居用品、家具。所以他們沒有我們所擁有的強勁家具趨勢的好處。正如我之前所說，他們有一些非常不幸的缺貨。不幸的是，它們影響了我們向客戶展示的獨家商品的數量，這是我們戰略的重要組成部分。你以前聽我們談論過這個。我很樂觀，我們將在今年假期前讓他們進來。

Kids and Teen, I think it's going to be sooner than that. But I've predicted this before, and unfortunately, I've been wrong because you think you get one thing fixed and you have another problem happen in the supply chain. So it's good to have a portfolio of brands to produce results, and we are on top of the details. But in terms of the second half, that would be my best estimate.

孩子們和青少年，我認為它會比那更早。但我之前已經預測到了這一點，不幸的是，我錯了，因為你認為你解決了一個問題，而供應鏈中又出現了另一個問題。因此，擁有一系列品牌來產生成果是件好事，而且我們掌握著細節。但就下半年而言，這將是我最好的估計。

And our next question will come from Peter Benedict with Baird.

我們的下一個問題將來自 Peter Benedict 和 Baird。

I want to talk a little bit about the -- to ask you about the B2B business. It looks like it was probably over 60% of your growth in the first quarter. So incredibly robust. Can you help us maybe break down the future opportunity you see there? I know you expect to double it, I think, in the next 3 years, so another $750 million or so in revenue. Kind of where is that coming from? And I guess the real question is if -- is that less exposed to, let's say, the macro concerns that people have in the market right now around consumer spending and housing and all these types of things? Is that a business that you think can kind of be, I guess, a bit acyclical over the next few years?

我想談談 - 向您詢問 B2B 業務。看起來這可能是您第一季度增長的 60% 以上。如此令人難以置信的強大。你能幫助我們打破你在那裡看到的未來機會嗎？我知道你希望在未來 3 年內翻一番，這樣收入就會增加 7.5 億美元左右。那是從哪裡來的？而且我想真正的問題是——比方說，人們現在在市場上對消費者支出和住房以及所有這些類型的事情的宏觀擔憂是否會減少？我想，在接下來的幾年裡，你認為這是一個有點非週期性的業務嗎？

Yes. It's great. It's a different customer. And the slowdown of the building and the pandemic means there's a backlog of all this. Remember they build, then they furnish. So there's, I think, more opportunity even now than there was. And we write estimates. We see our book. Our business is very strong. We haven't seen a slowdown. A big win for us. Clearly, one of our differentiators even if it's a more challenging environment in the future.

是的。這很棒。這是一個不同的客戶。建築物的放緩和大流行意味著所有這些都積壓了。記住他們建造，然後他們提供。所以，我認為，即使是現在，也比以前有更多的機會。我們寫估計。我們看到我們的書。我們的業務非常強大。我們還沒有看到放緩。對我們來說是一個巨大的勝利。顯然，這是我們的差異化因素之一，即使它在未來是一個更具挑戰性的環境。

And so it's across multiple verticals. We've told you that. We're excited because we're designing for people products that are specific to their needs, and then we're finding that those are just great wins for even consumer. So it's a really interesting innovator also of new product wins.

所以它跨越多個垂直領域。我們已經告訴過你了。我們很興奮，因為我們正在為人們設計特定於他們需求的產品，然後我們發現這些對於甚至消費者來說都是巨大的勝利。所以它也是一個非常有趣的新產品創新者。

And it's interesting also, it's becoming a real -- first, this is just an idea, and now it's big business. People are starting to take notice of it. And it's a really a source of confidence. Furniture is everywhere. It's not just in your home. And we're going to continue to invest in this white space, and we're winning awards. And we're building this business, and it's a competitive advantage.

它也很有趣，它正在成為現實——首先，這只是一個想法，現在它是大生意。人們開始注意到它。這是一個真正的信心來源。家具無處不在。它不只是在你的家裡。我們將繼續在這個空白領域投資，我們正在贏得獎項。我們正在建立這項業務，這是一項競爭優勢。

Absolutely. It sounds like -- and I know you guys asked only one question, but everyone seems to be asking 2. So I'll just throw one in. Can you give us a sense for how many shares you bought back in the quarter with that $500 million?

絕對地。這聽起來像 - 我知道你們只問了一個問題，但每個人似乎都在問 2。所以我就扔一個。你能告訴我們你在本季度買回了多少股票嗎？ 5億美元？

I think that will be in the Q when we release the Q. So we'll give it to you then. But certainly, it was, as I said in my prepared remarks, that it's up 60% off of last year's all-time high. So it is considerable amount of shares that we bought. And we believe wholeheartedly, obviously, in the strength of our business and believe certainly that we're at a level of our stock price that we shouldn't be at. And so we're going to continue to opportunistically invest in our own company.

我認為當我們發布 Q 時，它會出現在 Q 中。所以我們會在那時給你。但可以肯定的是，正如我在準備好的講話中所說，它比去年的歷史最高點上漲了 60%。因此，我們購買了相當數量的股票。顯然，我們全心全意地相信我們的業務實力，並且確信我們的股價處於我們不應該處於的水平。因此，我們將繼續機會主義地投資於我們自己的公司。

And moving on to Simeon Gutman with Morgan Stanley.

並與摩根士丹利一起轉向西蒙古特曼。

My question is on ticket. Is there anything that's surprising you? Or maybe the spread between ticket and unit, is it widening? And then it sounds like given that there's higher costs coming into the system that maybe even higher prices maybe by the back half of the year. So how do you kind of weigh that trade-off with -- look, maybe macro headwinds or maybe not, but it feels like prices probably go even higher in the back half. And you're reiterating your guide, but curious how that fits into it.

我的問題是關於票的。有什麼讓你吃驚的嗎？或者，票和單位之間的價差是否擴大了？然後聽起來好像有更高的成本進入系統，可能到今年下半年甚至更高的價格。那麼你如何權衡這種權衡 - 看，可能是宏觀逆風，也可能不是，但感覺後半部分的價格可能會更高。你在重申你的指南，但很好奇它是如何融入其中的。

A couple of things. First of all, it's not just about ticket of one thing. It's about our mix of business, right? So we are growing our furniture business, which has a higher ticket. And that's where our growth is coming versus the small business. So that is going to continue to be an interesting dynamic as we think about these things. So I don't think worrying about that as just an inflationary issue is the right way to think about it because I know that it's also because we're very deliberately building the world's greatest furniture business.

有幾件事。首先，這不僅僅是關於一件事的票。這是關於我們的業務組合，對吧？所以我們正在發展我們的家具業務，它的票價更高。這就是我們的增長與小企業相比的地方。因此，當我們考慮這些事情時，這將繼續是一個有趣的動態。所以我不認為把這僅僅作為一個通貨膨脹問題來擔心是正確的思考方式，因為我知道這也是因為我們非常刻意地建立了世界上最偉大的家具企業。

So that's going to mean that ticket goes up. So that's the first. And then Pottery Barn is higher ticket, obviously, than some of our other brands, even higher than -- bed is more expensive than a crib. So if you don't need a crib -- there's so many dynamics underneath ticket as a question. So it's not just as easy as saying it's an inflationary issue.

所以這意味著票會上漲。所以這是第一個。然後 Pottery Barn 的票價顯然比我們的其他一些品牌要高，甚至比——床比嬰兒床貴。因此，如果您不需要嬰兒床 - 門票下面有很多動態作為一個問題。因此，這並不像說這是一個通貨膨脹問題那麼容易。

In terms of pricing, I mean, the first thing is we just we beat the op margin substantially. We're not guiding that beat through the balance of this year, okay? So that's because we know there's additional costs that are coming through the balance of this year. So it's not that we're raising prices. It's that we don't expect to be by -- how much we'd be by, Julie?

在定價方面，我的意思是，首先我們只是大幅超過了營業利潤率。我們不會在今年的餘額中指導那個節拍，好嗎？這是因為我們知道今年的餘額中會產生額外的成本。因此，我們並不是在提高價格。是我們不期望會過——我們會過多久，朱莉？

120 basis points.

120 個基點。

120 basis points. We said we're going to be in line for the balance of the year.

120 個基點。我們說我們將在今年的餘額中保持一致。

Fair enough. If I can sneak in my first follow-up question, outdoor and seasonal, is anything deferred, whether because it's coming in late or because the weather didn't break? And how do you plan that category?

很公平。如果我可以潛入我的第一個後續問題，戶外和季節性，是否有任何延遲，無論是因為它遲到還是因為天氣沒有休息？您如何計劃該類別？

I mean there's no specific weather pattern that I've ever seen, frankly, impact us. But versus last year, of course, coming out of COVID or because we're still in COVID, we sold it earlier. And so we're back at a more normalized curve for outdoor that's later in the season, which is actually a really good thing. We have a year-round business, so it's not a business that we just have during the summertime, and that also helps us with stability of inventory. But outdoor business is a very strong business for us. It's one where we continue to gain market share and push our assortments and have better product and better marketing. And it's a real growth vehicle for us.

我的意思是，坦率地說，我從未見過任何特定的天氣模式會影響我們。但是，與去年相比，當然是從 COVID 中走出來，或者因為我們仍處於 COVID 中，所以我們更早地出售了它。因此，我們在本賽季後期回到了更加標準化的戶外曲線，這實際上是一件非常好的事情。我們有全年業務，所以這不是我們僅在夏季進行的業務，這也有助於我們穩定庫存。但戶外業務對我們來說是一項非常強大的業務。這是我們繼續獲得市場份額並推動我們的分類並擁有更好的產品和更好的營銷的地方。這對我們來說是一個真正的增長工具。

Our next question comes from Jonathan Matuszewski with Jefferies.

我們的下一個問題來自 Jefferies 的 Jonathan Matuszewski。

Laura, Julie, great results. A follow-up question about a scenario of the economy slowing. Could you remind us how much of your COGS and SG&A could flex the fixed and variable split for both, if you could share?

勞拉，朱莉，偉大的成果。關於經濟放緩情景的後續問題。如果您可以分享，您能否提醒我們您的 COGS 和 SG&A 有多少可以靈活調整兩者的固定和可變拆分？

We've never really disclosed that. And I guess what I would say, what we've learned is nothing is fixed. If you're depending on the environment, we go after it all, and we've been very successful at that. So it's kind of irrelevant for us. We've been very successful going after it.

我們從未真正披露過這一點。我想我會說，我們學到的是沒有什麼是固定的。如果您依賴環境，我們會全力以赴，我們在這方面非常成功。所以這對我們來說有點無關緊要。我們一直非常成功地追求它。

Remember, if prices come down, costs come down, too, from our vendors.

請記住，如果價格下降，我們供應商的成本也會下降。

Okay. And just a quick follow-up on B2B. A lot of traction there. Any sense of how much of your business on B2B has been driven by repeat engagements? Presumably, if you've done a hotel or a satellite office for one hospitality or corporate client, how often does that translate into a future project? Trying to get a sense of how much of this is relationship-driven or would be open to kind of recurring competitive bidding.

好的。並且只是對 B2B 的快速跟進。那裡有很大的吸引力。是否知道您的 B2B 業務有多少是由重複參與推動的？據推測，如果您為一個酒店或企業客戶建造了酒店或衛星辦公室，那麼這多久會轉化為未來的項目？試圖了解其中有多少是由關係驅動的，或者對反復出現的競爭性投標持開放態度。

Yes. So that piece of the business is growing. But we still have a lot of small projects, too. We love both. So teasing it out that way. I don't think there's anything really to that yet other than to say that we're building this more consistent annuity business, and that will get more and more stable as we grow.

是的。因此，這部分業務正在增長。但是我們還有很多小項目。我們都愛。所以就這樣戲弄它。除了說我們正在建立這個更加一致的年金業務之外，我認為沒有什麼真正的意義，並且隨著我們的成長，這將變得越來越穩定。

And moving on to Steven Zaccone with Citi.

並與花旗一起轉向史蒂文扎科內。

Great. I wanted to follow up on Simeon's question. So you referenced inventory on hand was up 17%, and then I think units on hand are up about 1%. Is that spread a good proxy to think about how much AUR is up?

偉大的。我想跟進西蒙的問題。所以你提到的手頭庫存增加了 17%，然後我認為手頭的單位增加了大約 1%。這是否是一個很好的代理來考慮 AUR 上漲了多少？

Not necessarily. It's mix shift. It's pricing. It's all sorts of things that are a combination that make up that delta. But I think the point there is to really think about that we don't have excess inventory like the other companies that have been reporting. We have been very thoughtful about that, and we only have 1% up in units to make the point that the 28% is overstated relative to what we've heard from others.

不必要。是混音。是定價。各種各樣的東西構成了這個三角洲的組合。但我認為真正要考慮的是，我們沒有像其他公司報告的那樣有過多的庫存。我們對此進行了非常深思熟慮，我們僅增加了 1% 的單位，以表明 28% 相對於我們從其他人那裡聽到的內容被誇大了。

Got it. Perfect. The other question, just to follow up, I just want to make sure I understand the messaging correctly. So it sounds like there's some more costs coming online as we think about the balance of the year. Should we interpret that, that gross margin expansion gets a bit more challenging as we go through the year? I'm just trying to understand if that's new or is it just -- this is still a little bit of conservatism that you're factoring in on the gross margin line.

知道了。完美的。另一個問題，只是為了跟進，我只是想確保我正確理解了消息。因此，當我們考慮今年的餘額時，聽起來網上會有更多的成本。我們是否應該解釋一下，隨著這一年的過去，毛利率的擴張變得更具挑戰性？我只是想了解這是新的還是只是 - 這仍然是您在毛利率線上考慮的一點保守主義。

It's possible. I mean certainly, we do have higher costs coming throughout the year. As we've said, we've got higher product costs, higher freight costs. There's costs that we're incurring to have additional distribution space to house the fact that we've got this mix shift to furniture, which is a larger cube.

這是可能的。我的意思是，我們全年確實有更高的成本。正如我們所說，我們的產品成本更高，運費更高。我們需要額外的分配空間來容納我們已經將這種混合轉移到家具的事實，這是一個更大的立方體。

And we're also doing the right thing by our customers. As I said before, we are shipping things to them that are out of market -- from out-of-market distribution centers because we want to get it to them faster. Customer service is critical for us. And we might ship multiple times to a same customer if they've got a multiunit order. And we want to do the right thing by the customer.

我們也在為客戶做正確的事。正如我之前所說，我們正在向他們運送市場外的東西 - 從市場外的配送中心，因為我們希望更快地將其送到他們手中。客戶服務對我們來說至關重要。如果他們有多件訂單，我們可能會多次向同一客戶發貨。我們希望為客戶做正確的事。

And so yes, there could be pressures moving through. But at the end of the day, we're committed to obviously doing everything we can to mitigate it as we've done in the past. And we are committed to holding our op margin on the year relatively in line, which, again, is more than 2x where it's been.

所以是的，可能會有壓力通過。但歸根結底，我們顯然致力於盡我們所能減輕它，就像我們過去所做的那樣。而且我們致力於保持我們今年的運營利潤率相對穩定，這再次是過去的 2 倍以上。

Thank you. And that does conclude the question-and-answer session. I'll now turn the conference back over to you for any additional or closing remarks.

謝謝你。這確實結束了問答環節。我現在將會議轉回給您，以獲取任何補充或結束語。

Yes. I just want to thank all of you for your support and interest in our company, and we look forward to talking to you next quarter.

是的。我只想感謝大家對我們公司的支持和關注，我們期待在下個季度與您交談。

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

嗯，謝謝。今天的會議到此結束。我們非常感謝您的參與。有一個美好的一天。