Williams-Sonoma Inc (WSM) 2022 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Williams-Sonoma, Inc. Q2 2022 Conference Call.

女士們，先生們，美好的一天，歡迎參加 Williams-Sonoma, Inc. 2022 年第二季度電話會議。

(Operator Instructions)

（操作員說明）

Today's call is being recorded. I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor Relations. Please go ahead.

今天的電話正在錄音。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 second quarter earnings call.

下午好，感謝您參加我們的第二季度財報電話會議。

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 estimate 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.

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. Those 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 those 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. The call is being recorded, and a replay will be available on our Investor Relations website.

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，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。通話正在錄音，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.

謝謝，傑里米。大家下午好。

I'm excited to share our second quarter earnings today. Q2 marked another quarter of strong performance, delivering an 11.3% comp on the top line and earnings growth of over 19% to $3.87 per share. These impressive results reflect the strength of our multi-brand portfolio, the success of our growth initiatives and the ongoing execution of the team. We continue to demonstrate our ability to perform by offering high-quality, differentiated and sustainable products that our customers know and love.

我很高興今天分享我們第二季度的收益。第二季度標誌著又一個季度的強勁表現，收入增長 11.3%，盈利增長超過 19%，達到每股 3.87 美元。這些令人印象深刻的結果反映了我們多品牌組合的實力、我們增長計劃的成功以及團隊的持續執行力。我們通過提供客戶了解和喜愛的高質量、差異化和可持續產品來繼續展示我們的執行能力。

Our performance was driven by 3 factors: strong order fulfillment, positive demand comps and our successful continued elimination of site-wide promotions. I'm very proud of this performance, especially given the macroeconomic backdrop and the strong compares we are up against, all while delivering an impressive 41.1% comp on a 2-year basis. And it is this continued outperformance that gives us the confidence to reiterate our 2022 guidance and longer-term outlook today.

我們的業績受到 3 個因素的推動：強勁的訂單履行、積極的需求補償以及我們成功地持續消除全站促銷活動。我為這種表現感到非常自豪，特別是考慮到宏觀經濟背景和我們所面臨的強勁對比，同時在 2 年的基礎上實現了令人印象深刻的 41.1% 的比較。正是這種持續的優異表現讓我們有信心在今天重申我們的 2022 年指導和長期前景。

Our positioning in the industry is a competitive strength. Our industry is large and fragmented with more than half of sales from small brick-and-mortar retailers that do not have sophisticated e-commerce capabilities. And with the arrival of the millennial generation for the household creation stage, this is a huge opportunity for ongoing market share gains for us, while the rest of the players try to catch up.

我們在行業中的定位是一種競爭優勢。我們的行業規模龐大且分散，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。隨著千禧一代進入家庭創造階段，這對我們來說是一個持續增加市場份額的巨大機會，而其他玩家則試圖迎頭趕上。

At the same time, our digital-first but not digital-only channel strategy provides a competitive edge in scaling the business into the future compared to both retail and marketplace only players. All of this creates an environment that is ripe for disruption and for us to take market share.

同時，與零售和僅市場參與者相比，我們的數字優先而非僅數字渠道戰略在將業務擴展到未來方面提供了競爭優勢。所有這一切都為顛覆和我們佔領市場份額創造了一個成熟的環境。

We continue to win because of our key differentiators, which include our in-house design capabilities with inspirational, exclusive, sustainable and high-quality products at compelling price points. Our digital-first but not digital-only channel strategy and our values rooted in sustainability, diversity, equity and inclusion, which are becoming even more fundamental to purchasing decisions for many customers. These differentiators set us apart as a leader in the industry.

我們之所以能繼續獲勝，是因為我們的主要差異化因素包括我們的內部設計能力，以及具有啟發性、獨特性、可持續和高品質的產品，並且價格極具吸引力。我們的數字優先而非僅數字渠道戰略以及我們植根於可持續性、多樣性、公平和包容性的價值觀，這些對於許多客戶的購買決策來說變得更加重要。這些差異化因素使我們在行業中脫穎而出。

And now I want to highlight one of our opportunities, business to business. Our B2B business had another terrific quarter driving a 32% increase in demand in Q2 and it is well on track to becoming a $1 billion business this year. We continue to grow in this space by focusing on diversifying our product pipeline across a range of industry verticals.

現在我想強調我們的機會之一，企業對企業。我們的 B2B 業務又經歷了一個非常棒的季度，推動第二季度的需求增長了 32%，並且有望在今年成為 10 億美元的業務。我們通過專注於在一系列垂直行業中使我們的產品線多樣化，繼續在這一領域發展。

In sports and entertainment, we are excited to service our first collegiate sports facility at San Diego State New Snapdragon Stadium. In hospitality, we continue to gain market share through renovations and new builds, leveraging our diverse fleet of brands. And in our commercial office pipeline, we are encouraged to see the momentum continue as companies return to the office and workspaces are reimagined.

在體育和娛樂方面，我們很高興為聖地亞哥州立新 Snapdragon 體育場的第一個大學體育設施提供服務。在酒店業，我們利用我們多元化的品牌隊伍，繼續通過翻新和新建獲得市場份額。在我們的商業辦公室管道中，隨著公司重返辦公室和重新構想工作空間，我們很高興看到這種勢頭繼續下去。

To drive the B2B growth, we are focused on the continued development of our sales team and expansion of our contract-grade product assortment. We remain optimistic and excited about the potential of this business as there is no one else providing the full suite of services and offerings that we do.

為了推動 B2B 增長，我們專注於銷售團隊的持續發展和合同級產品種類的擴展。我們對這項業務的潛力保持樂觀和興奮，因為沒有其他人提供我們提供的全套服務和產品。

Moving to sustainability. We are thrilled to announce the recent publication of our 2021 impact report highlighting the progress and fulfillment of our industry-leading ESG goals. We remain committed to prioritizing sustainability, diversity, philanthropy and worker well-being as key differentiators for our business. In the report, we detailed progress on our long-standing commitment, including responsibly sourced cotton and wood, waste diversion and increased fair trade premium. We are also one of the first home furnishing brands to set a science-based target for reducing our emissions across our company, and we have made progress decreasing our carbon intensity.

轉向可持續性。我們很高興地宣布我們最近發布的 2021 年影響報告強調了我們行業領先的 ESG 目標的進展和實現情況。我們仍然致力於優先考慮可持續性、多樣性、慈善事業和工人福祉，將其作為我們業務的關鍵差異化因素。在報告中，我們詳細介紹了我們長期承諾的進展，包括負責任採購的棉花和木材、廢物轉移和增加公平貿易溢價。我們也是首批在全公司範圍內設定科學減排目標的家居品牌之一，我們在降低碳強度方面取得了進展。

Now I'd like to talk about our global business. We continue to believe that global expansion represents a sizable opportunity, and we are focused on a multichannel strategy in key markets. In Q2, we continued building momentum with our franchise partnerships. Our presence in Mexico continues to drive growth, and we launched the Pottery Barn and Pottery Barn Kids websites in India with stores beginning in Q3 of this year and further expansion into 2023. And in our company-owned business in Canada, we continue to expand our family of brands with the launch of our Pottery Barn Teen website and the relaunches of Williams-Sonoma West Elm in our Pottery Barn Kids website in the market, all with great customer response.

現在我想談談我們的全球業務。我們仍然相信全球擴張代表著巨大的機遇，我們專注於關鍵市場的多渠道戰略。在第二季度，我們繼續通過特許經營夥伴關係建立勢頭。我們在墨西哥的業務繼續推動增長，我們在印度推出了 Pottery Barn 和 Pottery Barn Kids 網站，商店從今年第三季度開始，並進一步擴展到 2023 年。在我們在加拿大的公司擁有的業務中，我們繼續擴張我們的品牌家族推出了我們的 Pottery Barn Teen 網站，並在市場上的 Pottery Barn Kids 網站上重新推出了 Williams-Sonoma West Elm，所有這些都得到了很好的客戶響應。

Before we get to the strong results of the brand, I want to update you on the supply chain. Unfortunately, this is an area where we continue to see significant disruption, inefficiencies and cost pressures. Although our in-stock position has improved, we have still room to improve our on-time shipments to customers. Also, we continue to incur higher distribution center costs to support our growth as well as higher ocean freight. And we are still incurring added costs to ship out of market and multiple shipments to service our customers. We expect this pressure will continue in the second half of this year and the first half of next. This is reflected in our guidance and our outlook.

在我們獲得該品牌的強勁成果之前，我想向您介紹供應鏈的最新情況。不幸的是，在這個領域，我們繼續看到嚴重的中斷、效率低下和成本壓力。儘管我們的庫存狀況有所改善，但我們仍有改善按時向客戶發貨的空間。此外，我們繼續承擔更高的配送中心成本以支持我們的增長以及更高的海運費用。而且，我們仍然會產生額外的成本來運出市場和多次裝運以服務我們的客戶。我們預計這種壓力將在今年下半年和明年上半年持續存在。這反映在我們的指導和展望中。

Now let's turn to the performance of our brands. Pottery Barn delivered another extremely strong quarter with a 21.5% comp or 51.1% on a 2-year basis. All channels and product divisions contributed to driving incremental demand. Our high-quality proprietary furniture business continues to lead the growth.

現在讓我們談談我們品牌的表現。 Pottery Barn 又一個非常強勁的季度實現了 21.5% 的比較或 51.1% 在 2 年的基礎上。所有渠道和產品部門都推動了需求的增長。我們的高品質專有家具業務繼續引領增長。

Pottery Barn continues to innovate with product and incremental growth initiatives. For example, in July, Pottery Barn launched the Accessible Home, an exciting new concept designed to enhance the quality of life at home with aging in-place community and people living with disabilities and injury. Our customers have responded enthusiastically about our efforts to address this underserved market, and we believe this could be a significant opportunity across our portfolio of brands.

Pottery Barn 繼續通過產品和增量增長計劃進行創新。例如，7 月，Pottery Barn 推出了無障礙住宅，這是一個令人興奮的新概念，旨在提高就地老齡化社區以及殘疾人和受傷人士的家庭生活質量。我們的客戶對我們為解決這個服務不足的市場所做的努力反應熱烈，我們相信這可能是我們品牌組合中的一個重要機會。

Moving to West Elm. West Elm delivered a 6.1% comp in the second quarter on top of 51.1% last year or 57.2% on a 2-year basis. We're excited about our new businesses in kids and bath, which continue to drive outsized growth for the brand. And we launched our dedicated B2B e-commerce experience and expanded assortment there.

搬到西榆樹。 West Elm 在第二季度實現了 6.1% 的收益，高於去年的 51.1% 或 2 年的 57.2%。我們對我們在兒童和衛浴領域的新業務感到興奮，這將繼續推動該品牌的巨大增長。我們在那裡推出了專門的 B2B 電子商務體驗並擴大了產品種類。

Looking forward to Q3, we are focused on 3 key areas of growth at West Elm. One, improving furniture in-stocks and lead time reductions; two, expanding our depth in seasonal decorating, hosting and entertainment categories; and three, launching innovative collaborations across the brand. And with the ongoing success of our strategic initiatives, we remain confident in our ability to drive West Elm to become a $3 billion brand.

展望第三季度，我們專注於 West Elm 的 3 個關鍵增長領域。一、改善家具庫存和縮短交貨時間；二、拓展季節性裝修、託管和娛樂品類的深度；第三，在整個品牌範圍內開展創新合作。隨著我們戰略計劃的持續成功，我們對推動 West Elm 成為價值 30 億美元的品牌的能力仍然充滿信心。

Now I'd like to update you on our Pottery Barn children's home furnishing business, which delivered a sequentially stronger quarter with a 5.3% comp in Q2. During the quarter, we benefited from improving inventory receipts out of Vietnam, which filed factory closures that occurred in the back half of 2021. Also, we successfully launched our biggest ever back-to-school collection, and we enabled functionality to ship dorm products in any store in any brand in our fleet across the country. Early results also indicate the seasonal holiday business will be a success given the early positive reaction to Halloween.

現在，我想向您介紹一下我們的 Pottery Barn 兒童家居業務，該業務在第二季度實現了 5.3% 的業績增長。在本季度，我們受益於越南庫存收入的改善，越南在 2021 年下半年關閉了工廠。此外，我們成功推出了有史以來最大的返校系列，並啟用了運送宿舍產品的功能在我們全國各地的車隊中的任何品牌的任何商店中。早期結果還表明，鑑於對萬聖節的早期積極反應，季節性假日業務將取得成功。

In the Williams-Sonoma brand, I want to highlight our recently announced change in leadership. Felix Carbullido, previously our Chief Marketing Officer, has assumed the role of President of the Williams-Sonoma brand. Felix brings incredible talent to the position through his experience in strategy and operations in addition to a breadth of merchandising, e-commerce and marketing expertise. Felix is only 3 weeks into the role, but sees clear opportunities for the brand, particularly in key areas, including: one, leaning further into the brand's heritage of inspiring those who love to cook at home with relevant and useful storytelling across all channels; two, the importance of offering the best product and ensuring customers can rely on Williams-Sonoma to be in stock across the key essentials of a great home kitchen. And finally, there are white space opportunities not only in our core offering, but also in new categories that have clear adjacencies to the kitchen.

在 Williams-Sonoma 品牌中，我想強調一下我們最近宣布的領導層變動。 Felix Carbullido，我們之前的首席營銷官，已擔任 Williams-Sonoma 品牌總裁一職。 Felix 憑藉他在戰略和運營方面的經驗以及廣泛的營銷、電子商務和營銷專業知識，為該職位帶來了令人難以置信的人才。 Felix 上任僅 3 週，但看到了品牌的明顯機會，尤其是在關鍵領域，包括： 一，進一步利用品牌的傳統，通過所有渠道的相關和有用的故事講述來激勵那些喜歡在家做飯的人；第二，提供最好的產品並確保客戶可以依賴 Williams-Sonoma 的庫存，以提供優質家庭廚房的關鍵必需品。最後，不僅在我們的核心產品中，而且在與廚房有明顯鄰接關係的新類別中都有留白機會。

In Q2, Williams-Sonoma came in at a positive 0.5% comp with accelerating comps throughout the quarter. This was driven by an improved in-stock position, newness in the assortment as well as higher conversion on the site driven by our ongoing e-commerce initiatives that improved imagery and shop path. In stock continues to improve, and we believe we will see further recovery in the back half.

在第二季度，威廉姆斯-索諾瑪取得了 0.5% 的正增長，整個季度的增長都在加速。這是由於庫存狀況的改善、分類的新穎性以及網站上更高的轉化率，這是由我們正在進行的電子商務計劃推動的，這些計劃改善了圖像和商店路徑。庫存繼續改善，我們相信我們將在下半年看到進一步的複蘇。

As part of the Williams-Sonoma brand, our Williams-Sonoma Home business, we had a high double-digit comp again 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 home furnishings.

作為 Williams-Sonoma 品牌的一部分，我們的 Williams-Sonoma Home 業務，本季度我們再次獲得了兩位數的高比例，並且繼續是一個機會。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 注定會成為以獨特設計為主導、高- 品質家居。

In summary, we are proud of our performance and we remain committed to executing on our growth initiatives and operational improvements to drive market share gains and strong long-term financial returns. I want to thank our customers, our employees and our shareholders. We are committed to delivering for all of you.

總之，我們為我們的業績感到自豪，我們將繼續致力於執行我們的增長計劃和運營改進，以推動市場份額增長和強勁的長期財務回報。我要感謝我們的客戶、員工和股東。我們致力於為大家提供服務。

And with that, I'd like to turn the call to Julie to go through all the financials in more detail.

有了這個，我想把電話轉給朱莉，讓她更詳細地了解所有財務狀況。

Thank you, Laura, and hello, everyone.

謝謝你，勞拉，大家好。

We had another outstanding quarter with revenues, operating margin and earnings all exceeding expectations. Our performance and execution remains strong. Our comps outperformed due to positive and healthy demand comps and accelerating order fulfillment. Our growth strategy has continued to build momentum and our operating margin continued to grow above expectations due to running a more regular priced business and another quarter of advertising and employment leverage. These factors enabled us to outperform on both the top and bottom line with double-digit comps and another quarter of operating margin expansion. Our results this quarter further validate that we are one of the best positioned to succeed in the short and long term with strong profitable growth.

我們又迎來了一個出色的季度，收入、營業利潤率和收益均超出預期。我們的表現和執行力依然強勁。由於積極和健康的需求組合和加速訂單履行，我們的組合表現出色。我們的增長戰略繼續建立動力，我們的營業利潤率繼續增長超過預期，這是由於經營更正常的定價業務以及另一個季度的廣告和就業槓桿。這些因素使我們能夠以兩位數的業績和另外四分之一的營業利潤率擴張在頂線和底線上表現出色。我們本季度的業績進一步證實，我們是在短期和長期內以強勁的盈利增長取得成功的最佳定位之一。

Moving to our second quarter results in more detail. Net revenues grew to $2.1 billion with comparable brand revenue growth at 11.3% on top of 29.8% last year for a 2-year stack of 41.1%. This includes double-digit growth in both channels. In retail, we delivered an 11.4% comp despite retail traffic down almost 19% in 2019. And in e-commerce, we delivered an 11.3% comp and grew our e-commerce penetration 60 basis points year-over-year to 65.4%.

轉到我們的第二季度結果更詳細。淨收入增長至 21 億美元，可比品牌收入增長 11.3%，高於去年的 29.8%，兩年累計增長 41.1%。這包括兩個渠道的兩位數增長。儘管零售流量在 2019 年下降了近 19%，但在零售領域，我們實現了 11.4% 的收益。在電子商務領域，我們實現了 11.3% 的收益，電子商務滲透率同比增長 60 個基點，達到 65.4%。

Moving down the income statement. Our gross margin continued to hold near historic highs at 43.5%, which was 60 basis points below last year's record Q2. Our merchandise margins remained strong with another consecutive quarter of merchandise margin expansion year-over-year as we continue to preserve our pricing integrity by remaining committed to our decision to no longer offer site-wide promotions. The gross margin decline was driven by higher freight costs from our strong furniture demand, higher back order fulfillment and global supply chain disruptions, driving freight rates higher for all.

向下移動損益表。我們的毛利率繼續保持在 43.5% 的歷史高位附近，比去年第二季度的創紀錄水平低 60 個基點。我們的商品利潤率保持強勁，商品利潤率連續一個季度同比增長，因為我們繼續致力於我們不再提供全站促銷的決定，從而繼續保持我們的定價完整性。毛利率下降的原因是我們強勁的家具需求導致運費上漲、延期交貨增加和全球供應鏈中斷，從而推高了所有運費。

We also incurred incremental freight costs in order to best serve our customers, to get product to them timely by shipping from out-of-market distribution centers and in some cases, shipping multiple times for multiunit orders, which typically would have been done in a single shipment.

我們還增加了運費，以便為我們的客戶提供最好的服務，通過從市場外配送中心發貨及時將產品送到他們手中，在某些情況下，為多件訂單發貨多次，這通常會在一個單次發貨。

Occupancy costs at 9% of net revenues were flat to last year, with occupancy dollars increasing 9.6% to approximately $193 million, which includes incremental costs from our new distribution centers on both the East and West Coast. These new distribution centers will allow us to support our ongoing growth, optimize service times for our customers and drive efficiencies in cost over time. And given our ongoing retail real estate optimization efforts, we were pleased that we were able to help mitigate these incremental costs and hold the occupancy rate flat.

占淨收入 9% 的佔用成本與去年持平，佔用美元增加 9.6% 至約 1.93 億美元，其中包括我們在東海岸和西海岸的新配送中心的增量成本。這些新的配送中心將使我們能夠支持我們的持續增長，優化客戶的服務時間，並隨著時間的推移提高成本效率。鑑於我們正在進行的零售房地產優化工作，我們很高興能夠幫助減輕這些增量成本並保持入住率不變。

Our SG&A rate continues to be at a historical low at 26.4%, leveraging 90 basis points over last year, driven by advertising and employment leverage from our strong topline performance and ongoing operational efficiency. Across the company, we continue to operate with a disciplined approach, challenging all expenditures to maximize the return from our spend.

我們的 SG&A 率繼續處於 26.4% 的歷史低位，比去年高出 90 個基點，這得益於我們強勁的營收表現和持續的運營效率帶來的廣告和就業槓桿。在整個公司範圍內，我們繼續以嚴謹的方式運營，挑戰所有支出，以最大限度地提高我們的支出回報。

These results once again led to a record quarter of earnings with our most profitable Q2 ever, including operating income growth of 12% to $366 million, and an operating margin at 17.1%, expanding 40 basis points over last year. This resulted in diluted earnings per share of $3.87, up 19.4% from last year's record second quarter earnings per share of $3.24.

這些結果再次帶來了創紀錄的季度收益，我們的第二季度利潤最高，包括營業收入增長 12% 至 3.66 億美元，營業利潤率為 17.1%，比去年擴大了 40 個基點。這導致每股攤薄收益為 3.87 美元，比去年創紀錄的第二季度每股收益 3.24 美元增長 19.4%。

On the balance sheet, we ended the quarter with a cash balance of $125 million with no debt outstanding and year-to-date operating cash flow of $384 million. This year-to-date cash flow allowed us to fund the operations of the business and to almost double our capital investments to support our growth. In addition, we returned excess cash year-to-date of almost $880 million to shareholders, through $113 million in dividends and $766 million in share repurchases, a significant increase over last year at this time. These elevated share repurchase levels reflect the confidence we have in the long-term strength of our business and demonstrate our commitment to maximizing shareholder returns.

在資產負債表上，我們在本季度末的現金餘額為 1.25 億美元，沒有未償債務，年初至今的經營現金流為 3.84 億美元。今年迄今的現金流使我們能夠為業務運營提供資金，並將我們的資本投資幾乎翻倍以支持我們的增長。此外，我們通過 1.13 億美元的股息和 7.66 億美元的股票回購向股東返還了近 8.8 億美元的超額現金，比去年同期顯著增加。這些較高的股票回購水平反映了我們對業務長期實力的信心，並表明我們致力於最大限度地提高股東回報。

Moving down the balance sheet. Merchandise inventories, which include in-transit inventory, were $1.542 billion, increasing 32% over our reduced levels last year. Inventory on hand increased 28% over last year, but was only up 1% to 2019 versus sales up 56% over the same time frame. In the quarter, back order levels decreased. However, they continue to be too high in total. We are working hard to get these goods in to fulfill our customer orders. We believe that we will be able to return to normalized back order levels next year.

向下移動資產負債表。包括在途庫存在內的商品庫存為 15.42 億美元，比我們去年減少的水平增加了 32%。庫存比去年增加了 28%，但到 2019 年僅增加了 1%，而同期銷售額增加了 56%。本季度，延期交貨水平有所下降。但是，它們的總數仍然太高。我們正在努力讓這些貨物進入我們的客戶訂單。我們相信明年我們將能夠恢復到正常的延期交貨水平。

Turning to our expectations for the remainder of the year and beyond. We are reiterating our fiscal year '22 and long-term financial outlook of mid- to high single-digit revenue growth, growing revenues to $10 billion by 2024 with operating margins relatively in line with fiscal year 2021. Our reiteration of our outlook simply acknowledges that the economic backdrop remains uncertain with currently unknown outcomes surrounding spending trends, inflation, interest rates, supply chain pressures and global unrest. The fundamentals of our business remains strong, evidenced by our first half outperformance and the accelerating demand comps we are seeing as we enter the third quarter.

談到我們對今年剩餘時間及以後的預期。我們重申我們的 22 財年和中高個位數收入增長的長期財務前景，到 2024 年將收入增長到 100 億美元，營業利潤率與 2021 財年相對一致。我們對前景的重申只是承認經濟背景仍然不確定，目前圍繞支出趨勢、通貨膨脹、利率、供應鏈壓力和全球動蕩的結果未知。我們業務的基本面依然強勁，上半年表現出色以及進入第三季度時我們看到的需求增長加速證明了這一點。

Our confidence to achieve our revenue outlook is rooted in 3 tangible drivers. Our year-to-date trends, which continue to outpace the industry and reflect market share gains, our continued improvement in our inventory receipts expected through the back half, which will enable us to fill prior orders and lower our elevated back order levels and our ongoing strength in our growth initiatives, which continue to build momentum.

我們實現收入前景的信心植根於 3 個切實的驅動因素。我們年初至今的趨勢繼續超過行業並反映市場份額的增長，我們預計下半年的庫存收入將持續改善，這將使我們能夠滿足先前的訂單並降低我們較高的延期交貨水平和我們的我們增長計劃的持續實力，繼續建立勢頭。

From a profitability perspective, we expect cost pressures to continue in the back half and into the beginning of 2023, particularly across our supply chain, from the incremental distribution centers and related costs to support our growth plus higher ocean freight and other freight-related costs resulting from the global supply chain disruptions and our efforts to best serve our customers by delivering product to them as timely as possible.

從盈利能力的角度來看，我們預計成本壓力將在下半年和 2023 年初持續存在，尤其是在我們的供應鏈中，從增量配送中心和支持我們增長的相關成本以及更高的海運和其他貨運相關成本由於全球供應鏈中斷以及我們通過盡可能及時地向客戶交付產品來為客戶提供最佳服務的努力。

Despite these pressures, we remain confident in our ability to achieve fiscal year operating margins relatively in line with our fiscal year '21 rate at 17.7%, which was an all-time high, given our strong start to the year and our culture of strong financial discipline.

儘管存在這些壓力，我們仍然有信心實現與我們 21 財年 17.7% 的相對一致的財年營業利潤率，這是歷史最高水平，因為我們今年開局強勁，文化強財務紀律。

In summary, we are very proud of the results we continue to deliver for our customers, associates and shareholders. These results further validate our ability to deliver sustainable strong growth and profitability. As we continue to navigate the dynamic changes in the macro environment, we are confident that our strong foundation of differentiators and our operating model as well as the momentum of our growth initiatives will continue to keep us ahead of the competition. And this, combined with an environment where consumers are shifting increasingly online and are prioritizing value and sustainability in their purchases now more than ever, leave us uniquely positioned to continue to take market share and profitably.

總之，我們為我們繼續為我們的客戶、員工和股東帶來的成果感到非常自豪。這些結果進一步驗證了我們實現可持續強勁增長和盈利能力的能力。隨著我們繼續應對宏觀環境的動態變化，我們相信，我們強大的差異化基礎和運營模式以及增長計劃的勢頭將繼續讓我們在競爭中保持領先地位。而這一點，再加上消費者越來越多地轉向網上，並且現在比以往任何時候都更重視購買的價值和可持續性，使我們處於獨特的地位，可以繼續佔據市場份額並實現盈利。

Finally, I would like to thank all our associates for their hard work and relentlessness in driving these great results.

最後，我要感謝我們所有的同事，感謝他們的辛勤工作和不懈努力，推動了這些偉大的成果。

I would now like to open the call for questions. Thank you.

我現在想打開提問的電話。謝謝你。

(Operator Instructions)

（操作員說明）

We'll take our first question from Max Rakhlenko with Cowen and Company.

我們將向 Cowen and Company 的 Max Rakhlenko 提出第一個問題。

Great. Nice job in the quarter. So first, just on topline, can you share what demand was in the quarter and then just provide any more color on early 3Q trends? And then just bigger picture, what do you attribute the outperformance to and ways that you can play offense from here as the environment does get tougher?

偉大的。本季度幹得不錯。因此，首先，就頂線而言，您能否分享一下本季度的需求，然後再提供有關 3Q 早期趨勢的更多信息？然後只是更大的圖景，隨著環境變得更加艱難，您將出色的表現歸因於什麼以及您可以從這裡進攻的方式？

Max, it's Julie. So as we said in our prepared remarks, our demand comps remained positive and healthy and, in fact, accelerated as we entered into the third quarter. They are lower than our double-digit net comps. We had alluded to that in our last call that we had seen the demand comps start to moderate. But they are nothing like what we've heard others indicate or report. And so we're pleased to see that we were able to deliver accelerated comps this quarter both driven by healthy demand and our accelerating net bill, and we're seeing both of those accelerate into the third quarter.

麥克斯，是朱莉。因此，正如我們在準備好的評論中所說，我們的需求組合保持積極和健康，實際上隨著我們進入第三季度而加速。它們低於我們的兩位數淨收入。我們在上次電話會議中提到過，我們已經看到需求組合開始放緩。但它們與我們聽到的其他人指出或報告的完全不同。因此，我們很高興看到本季度我們能夠在健康需求和我們不斷加速的淨賬單的推動下交付加速補償，而且我們看到這兩者都加速到第三季度。

And Max, to your question about why we're winning, and how come we're outperforming. First of all, thank you for the great question. We think it's a couple of reasons. First, we've said over and over what our key differentiators are and they're truly setting us apart. Let me just talk about the first one first in more detail than I have in the past.

Max，關於你為什麼要贏，以及我們為什麼表現出色的問題。首先，感謝您提出的好問題。我們認為這是幾個原因。首先，我們一遍又一遍地說明我們的關鍵差異化因素是什麼，它們真正讓我們與眾不同。讓我先比過去更詳細地談談第一個。

We talk about in-house design, which allows us to have proprietary products that is of high quality and at the best value. It also happens to be sustainable. But it also allows us to innovate and bring in collections that no one else has and see the white space. This culture of innovation that we have is driving a lot of the great wins for our business. And truly, I don't believe we have these results have we not continued to deliver these important points. And each one is a seed that grows and some into very large brands. But in Pottery Barn, Example A is accessible home, really obvious and sizable business opportunity. We just got started. They also have in Pottery Barn a bunch of great collaborations that they've been launching my favorite one with Hailey Bieber, which is really fun if you want to check that one out.

我們談論的是內部設計，這使我們能夠擁有高質量和最具價值的專有產品。它也恰好是可持續的。但它也使我們能夠創新並引入其他人沒有的系列並看到空白。我們擁有的這種創新文化正在為我們的業務帶來許多巨大的勝利。真的，如果我們沒有繼續提供這些重要的觀點，我不相信我們會有這些結果。每一個都是一顆成長的種子，有些會成長為非常大的品牌。但在 Pottery Barn 中，示例 A 是可訪問的家，非常明顯且可觀的商機。我們才剛剛開始。他們在 Pottery Barn 也有很多很棒的合作，他們一直在與 Hailey Bieber 推出我最喜歡的一個，如果你想看看這個真的很有趣。

On Pottery Barn Kids has always had really wonderful, exciting collaborations in different licenses that kids love from Beatrix Potter, Disney to Emily Meritt, Harry Potter, and those continue to drive relevancy for the brand and delight the trial.

On Pottery Barn Kids 一直在孩子們喜歡的不同許可證中進行非常精彩、令人興奮的合作，從 Beatrix Potter、迪士尼到 Emily Meritt、Harry Potter，這些都繼續推動品牌的相關性並為試用帶來樂趣。

For West Elm, in terms of innovation, we've talked about B2B, we've talked about kids and bath. But we also had some collaborations that really are working there like just Sarah Sherman Samuel. I don't know if you've had a chance to see that that's also in -- it's in Pottery Barn kids too. And this has really, really set us apart and gotten us more attention on our kids growth in our West Elm business. And we're still really low awareness that we even have a West Elm kids business.

對於 West Elm，在創新方面，我們談到了 B2B，我們談到了兒童和浴室。但我們也有一些真正在那里工作的合作，比如 Sarah Sherman Samuel。我不知道你是否有機會看到它也在 - 它也在 Pottery Barn 的孩子中。這真的，真的讓我們與眾不同，讓我們更加關注孩子在西榆樹業務中的成長。而且我們對我們甚至擁有西榆樹兒童業務的認識仍然很低。

So those are just some of the examples when we say innovation, we say that it's a differentiator that we design our own products. It's this culture of innovation that really, I think, is what's making us outperform.

所以這些只是我們說創新時的一些例子，我們說這是我們設計自己的產品的差異化因素。我認為，正是這種創新文化讓我們表現出色。

Got it. That's very helpful. And then just on promotions, bigger picture. Can you speak to the strategies ahead? We've seen the debt increase, but maybe not suppressed, and you obviously haven't returned site-wide promos. So just ahead, what should we expect from you? And I guess, ultimately, would you be willing to leave some topline on the table to maintain margins even if the industry does get very promotional in some of the quarters ahead?

知道了。這很有幫助。然後只是促銷，更大的圖景。你能談談未來的策略嗎？我們已經看到債務增加，但可能沒有受到抑制，而且您顯然沒有返回站點範圍的促銷。所以就在前面，我們應該對你有什麼期望？而且我想，最終，即使該行業在未來的某些季度確實得到了很大的提升，你是否願意在桌面上留下一些收入以保持利潤率？

Yes. So first of all, the industry is already very promotional, particularly with the big box retailers faltering. There's a lot that they're flushing through, and that's been going on for more than just a couple of weeks here, you've been watching this happen most of this year.

是的。因此，首先，該行業已經非常促銷，尤其是在大型零售商步履蹣跚的情況下。他們正在經歷很多事情，而且這種情況已經持續了不止幾個星期，今年大部分時間你都在看著這種情況發生。

I believe, Julie, you did detail the difference between our MMU and our...

我相信，朱莉，你確實詳細說明了我們的 MMU 和我們的...

Not financially, but yes, MMU has expanded. And the delta is on our gross margin is simply just the shipping cost. But the MMU still remains strong. It's another quarter of expansion that we're seeing. And so even with the promotional environment, we're still able to drive that.

不是在財務上，但是是的，MMU 已經擴大了。而我們毛利率的增量僅僅是運輸成本。但是MMU仍然很強大。這是我們看到的又一個季度的擴張。因此，即使有促銷環境，我們仍然能夠推動這一點。

I think that's the key point that I want to make sure that no one confuses when they just do the quick read of the gross margin that you understand where it came from and where it didn't come from. We are committed to the elimination of site-wide promos. We believe this is absolutely the healthiest way to run our business for long-term success. And it's a function of the products that we sell that have great design, as I said, and great quality and are sustainable. And as long as we continue to maintain that value equation in the product and the innovation, I believe we're really equipped to maintain this posture because no one else has the same product out there in the market.

我認為這是我想確保沒有人混淆的關鍵點，當他們快速閱讀毛利率時，您會了解毛利率的來源和來源。我們致力於消除網站範圍內的促銷活動。我們相信這絕對是我們經營業務以取得長期成功的最健康方式。正如我所說，這是我們銷售的產品的功能，它們具有出色的設計、卓越的品質和可持續發展。只要我們繼續在產品和創新中保持這種價值等式，我相信我們真的有能力保持這種姿態，因為市場上沒有其他人擁有相同的產品。

That said, this commitment doesn't mean that we're not going to use markdowns to manage our inventory. We are very aggressive about managing our inventories and markdowns are part of any retail business, and we will take markdowns particularly in seasonal products and slow-moving SKUs, but we have not expanded the amount of promotions that we're running.

也就是說，這一承諾並不意味著我們不會使用降價來管理我們的庫存。我們非常積極地管理我們的庫存，降價是任何零售業務的一部分，我們將特別針對季節性產品和滯銷 SKU 進行降價，但我們沒有擴大我們正在進行的促銷活動的數量。

We'll take our next question from Cristina Fernández with Telsey Advisory Group.

我們將向 Telsey 諮詢小組的 Cristina Fernández 提出下一個問題。

Congratulations on another good quarter. I wanted to ask about inventory receipts for the back half. I mean inventory has been tight, but it seems like it's improving. So do you expect better inventory flow in the second half of the year as what you've seen so far in the first half?

祝賀另一個好季度。我想問一下後半部分的庫存收據。我的意思是庫存一直很緊張，但似乎正在改善。那麼，您是否預計下半年的庫存流動會像您在上半年看到的那樣好？

Yes. I mean I would say we do. We certainly expect it to improve as we move throughout the back half. I think what's important to remember is that, I mean, first of all, as far as our growth to date, it's 32%, but it's still 1% on a 3-year basis versus 56% up on sales. And we are dealing with a lot of -- we're shifting more to furniture and bigger cube items, and we're dealing with inventory coming in both to fill back orders but also to fill our current demand. And so that creates a lot of inventory coming in at the same time. And yet at the same time, we still need to get more inventory in to be in stock. And we still, as Laura mentioned, need to be thoughtful about the inventory that's aging to be able to get it pushed out. So we have more room in the distribution center. So as we move to the back half, we do expect our inventory levels to get better but we'll still have elevated backorder levels into the first half of 2023.

是的。我的意思是我會說我們這樣做。我們當然希望它會隨著我們在後半場的移動而有所改善。我認為重要的是要記住，我的意思是，首先，就我們迄今為止的增長而言，它是 32%，但在 3 年的基礎上仍然是 1%，而銷售額增長了 56%。我們正在處理很多 - 我們正在更多地轉向家具和更大的立方體物品，我們正在處理庫存來填補訂單和滿足我們當前的需求。因此，這會同時產生大量庫存。然而與此同時，我們仍然需要獲得更多的庫存。正如勞拉所說，我們仍然需要考慮老化的庫存，以便能夠將其推出。所以我們在配送中心有更多的空間。因此，當我們進入後半部分時，我們確實預計我們的庫存水平會有所好轉，但到 2023 年上半年，我們的缺貨訂單水平仍將上升。

Yes. I think just to add to that, the good news is as we've gotten back in stock, which is really important to our customers, we have seen backorder crate rates come down. Back order levels have decreased even though they are still too high. Our cancel rates have moderated. And also just another thing under the covers is that, we have industry-leading lead times in our domestic in-house upholstery. Nobody else is shipping custom upholstery faster than we are. And as much as our on-time shipments are not where we want to be, we are extremely focused on getting back in stock and every day working to serve our customers the best we can in this environment. And I do believe as we go through the balance of this year and next -- early next, we should be in a much better position.

是的。我想補充一點，好消息是我們已經恢復了庫存，這對我們的客戶來說非常重要，我們已經看到缺貨的板條箱率下降了。延期交貨水平已經下降，儘管它們仍然太高。我們的取消率有所緩和。另一件事是，我們在國內室內裝潢中擁有行業領先的交貨時間。沒有其他人比我們更快地運送定制內飾。儘管我們的準時發貨不是我們想要的，但我們非常專注於恢復庫存，每天都在努力在這種環境下為我們的客戶提供最好的服務。而且我確實相信，隨著我們度過今年和明年的平衡 - 明年早些時候，我們應該處於更好的位置。

And then just a quick follow-up. On the merchandise margin, it seems like promotions are say, flattish year-over-year. So what are the other drivers that are allowing you to expand the operator -- the merchandise margin?

然後只是快速跟進。在商品利潤率上，促銷活動似乎同比持平。那麼，還有哪些其他驅動因素可以讓您擴大運營商——商品利潤率？

That's an interesting question without giving too much competitive information away. We -- I think you know that we have taken some price raises. We've been very selective. We don't pass those costs on unilaterally to our customers. We look to see where we're underpriced and where we can still offer value to this customer. And at this point, we are sort of plateauing on raising our prices. We're also starting to see that certain raw materials and fuel has come down in price. So over time, honestly, this should allow us to get price reductions from our vendor partners that we -- that could help our margins, and that would also potentially allow us to lower some of the prices to our customers.

這是一個有趣的問題，沒有透露太多競爭信息。我們——我想你知道我們已經提價了。我們一直非常挑剔。我們不會單方面將這些成本轉嫁給我們的客戶。我們希望看看我們在哪裡定價過低，以及我們仍然可以為該客戶提供價值的地方。在這一點上，我們在提高價格方面有點停滯不前。我們也開始看到某些原材料和燃料的價格已經下降。因此，老實說，隨著時間的推移，這應該使我們能夠從我們的供應商合作夥伴那裡獲得降價，這可以幫助我們提高利潤，這也可能使我們能夠向客戶降低一些價格。

We'll take our next question from Adrienne Yih with Barclays.

我們將向巴克萊銀行的 Adrienne Yih 提出下一個問題。

Congratulations again. You just keep the trend going. So Laura, there's been a lot of discussion about household income brackets and kind of the lower end, obviously, feeling much more of the pain and having that creeped into kind of the median household income in the second quarter. You guys stayed pretty high up, but I'm curious, the strength that you saw at Williams-Sonoma Home seek to really hire in. West Elm would seem to me to be maybe more median-ish in terms of household income. Can you talk about what you're seeing with regard to these different target income brackets and how they're behaving?

再次祝賀。你只是保持趨勢。所以勞拉，有很多關於家庭收入等級和低端的討論，顯然，感受到更多的痛苦，並在第二季度蔓延到家庭收入中位數。你們一直保持著很高的地位，但我很好奇，你們在 Williams-Sonoma Home 看到的實力正在尋求真正僱傭。在我看來，就家庭收入而言，West Elm 可能更加中等。你能談談你對這些不同的目標收入階層的看法以及他們的表現嗎？

Sure. First of all, Williams-Sonoma home for us is still very small, coming off a small base. So I wouldn't read much into that for the total high-end industry.

當然。首先，Williams-Sonoma 的主場對我們來說還很小，基數很小。因此，對於整個高端行業，我不會讀太多。

In terms of customers, I'm always looking at this data to see what we can see. I mean we don't see a ton of inconsistency across even location, slightly better, Southwest, Southeast, slightly better, but it's not material. Gen Z and millennials do continue to be our fastest growing segment, which is awesome. There isn't much differentiation with the income levels, except not based on income, it's about how much they spend. We're seeing people who spend more than $1,000 accelerate and people who spend less than $200 decelerate. But that's also not surprising given that furniture is a strong growth vehicle for our business that you would see that they're buying more furniture from us versus anything else.

就客戶而言，我一直在查看這些數據，看看我們能看到什麼。我的意思是，我們在均勻的位置上看不到大量的不一致，稍微好一點，西南，東南，稍微好一點，但這並不重要。 Z 世代和千禧一代確實繼續成為我們增長最快的部分，這太棒了。收入水平沒有太大差異，除了不是基於收入，而是他們花了多少錢。我們看到花費超過 1,000 美元的人加速，而花費少於 200 美元的人則減速。但這也不足為奇，因為家具是我們業務的強勁增長工具，您會看到他們從我們這裡購買的家具比其他任何東西都多。

So I don't -- I'm sharing this with you to share that we are looking at all these factors, and we're not seeing it, although one could conclude that we're more insulated because our customer is in a better situation from an income perspective. I think the bigger thing about the macro is that although there's been some slowing of the housing market, most of our customers have seen significant house appreciation, okay? And our customers love their homes, and it's one of the largest assets. And they are engaged with improving that asset.

所以我不 - 我與你分享這個是為了分享我們正在研究所有這些因素，但我們沒有看到它，儘管有人可以得出結論，我們更加絕緣，因為我們的客戶處於更好的境地從收入的角度來看。我認為宏觀上更大的事情是，儘管房地產市場有所放緩，但我們的大多數客戶都看到房屋升值幅度很大，好嗎？我們的客戶愛他們的家，這是最大的資產之一。他們正在致力於改善該資產。

And this -- I think we all know, we're all spending more time in our homes, working, entertaining and investing in them, of course. And we also know that home furnishing always lag the home sale and the home remodel. Therefore, the current period metrics on home sales and interest rates don't necessarily align with the home improvement journey. And as a result, we continue to believe there's significant runway ahead for home furnishing sales.

而這一點——我想我們都知道，當然，我們都在家里花更多的時間，工作、娛樂和投資。而且我們也知道，家居總是落後於房屋銷售和房屋改造。因此，當前有關房屋銷售和利率的指標不一定與房屋裝修過程一致。因此，我們仍然相信家居銷售前景廣闊。

And while I'm talking too much, I might as well just add, although there's a lot of smart people out there predicting a recession, we're also seeing consumer sentiment improve as inflation cools. So there's a lot of reasons, I think -- believe we're gaining share and that we're in the right business. We've looked at a lot of different data sources, and it is really in a couple of data sources is very clear that we're gaining share, significant share.

雖然我說得太多，但我不妨補充一下，儘管有很多聰明人預測經濟衰退，但隨著通脹降溫，我們也看到消費者信心有所改善。因此，我認為有很多原因 - 相信我們正在獲得份額並且我們的業務是正確的。我們已經查看了很多不同的數據源，並且確實在幾個數據源中非常清楚我們正在獲得份額，顯著份額。

Okay. And then for Julie, my follow-up is custom orders versus in-stocks. I know in-stocks have been hard to keep in stock. So I'm wondering if people have -- have you seen any noticeable difference in the movement to custom orders, those are obviously stickier and than non-cap cancellations because of the deposit, so any trends in that would be super helpful?

好的。然後對於朱莉，我的後續行動是定制訂單與庫存。我知道庫存很難保持。所以我想知道人們是否有 - 你是否看到定制訂單的移動有任何明顯的差異，這些顯然比非上限取消因為存款而更具粘性，所以這方面的任何趨勢都會非常有幫助？

I'll take that, Adrienne. So custom orders, most of our upholstery business is custom, okay? People always want to choose their own fabric and their own frame. We don't do much stock upholstery at all. So there's no dynamic there really that's changing. What's stocked is our bedroom furniture, dining furniture, all those wood pieces. But most of our upholstery business is custom.

我會接受的，艾德麗安。所以定制訂單，我們大部分的室內裝潢業務都是定制的，好嗎？人們總是想選擇自己的面料和自己的框架。我們根本不做太多的庫存裝飾。所以那裡沒有動態變化。庫存的是我們的臥室家具，餐廳家具，所有這些木製品。但我們的大部分室內裝潢業務都是定制的。

We'll take our next question from Seth Basham with Wedbush Securities.

我們將向 Wedbush Securities 的 Seth Basham 提出下一個問題。

Congrats on a great quarter. My first question is just thinking about the outlook for the back half of the year, if 2022 operating margins are in line with 2021, that implies some modest yearly decline in the second half operating margins after a strong performance in the first half. What's driving that slight decline? Is it some of the additional supply chain pressure? Or is there anything else that might get work here?

祝賀一個偉大的季度。我的第一個問題只是考慮下半年的前景，如果 2022 年的營業利潤率與 2021 年持平，這意味著在上半年表現強勁之後，下半年的營業利潤率將出現適度的年度下降。是什麼推動了這種小幅下降？是不是一些額外的供應鏈壓力？或者還有什麼可以在這里工作的嗎？

Yes. So there's 2 things there. First of all, I mean, we are obviously reiterating our strong guidance giving a nod the fact that the environment is uncertain. So we're being cautious on that, but there is definitely some pressure that we're going to feel on the op margin line, particularly associated with these ongoing supply chain costs. So we're going to continue to have incremental distribution center costs. We've got ocean freight costs that are higher along with dray and demurrage costs. So there's all the costs that are increased to get the goods to us. And then incrementally, we are doing the right thing by our customer to accelerate getting the goods to them. And so there'll be incremental cost for out-of-market shipments and for multiple shipments that we typically would have done in a single shipment. .

是的。所以那裡有兩件事。首先，我的意思是，我們顯然是在重申我們的強有力指導，承認環境是不確定的。所以我們對此持謹慎態度，但我們肯定會在運營利潤率線上感受到一些壓力，特別是與這些持續的供應鏈成本相關。因此，我們將繼續增加配送中心的成本。我們的海運成本以及滯期費和滯期費都更高。因此，將貨物送到我們這裡的所有成本都增加了。然後逐漸地，我們正在為客戶做正確的事情，以加快將貨物送到他們手中。因此，市場外發貨和我們通常會在一次發貨中完成的多次發貨會增加成本。 .

The one thing from a modeling perspective to make sure you're aware, if you remember last year in Q3, we had higher spot rate charges, and so that will help us to partially offset some of that incremental cost in Q3, but Q4, we didn't have that last year. And so you'll see that the Q4 is going to be a bigger impact than the Q3. But at the end of the day, of course, we will do everything we can to mitigate it as we always do. And thankfully, with the strength that we've had in the first half of the year, we are very confident in our ability to hit our operating margin in line with '21, which, as you know, is a 17.7% and the highest we've ever had.

從建模的角度來看，要確保您知道的一件事，如果您還記得去年第三季度的即期費率費用，這將有助於我們在第三季度部分抵消部分增量成本，但第四季度，去年我們沒有。所以你會看到第四季度的影響將比第三季度更大。但歸根結底，我們當然會像往常一樣盡我們所能減輕它。值得慶幸的是，憑藉我們在今年上半年的實力，我們對達到 21 年營業利潤率的能力非常有信心，如您所知，這是 17.7% 和最高的我們曾經有過。

That's really helpful. And then relatedly, as your inventory start to normalize, you'll have more clearance and need to mark down slow-moving SKUs. How much has that been benefiting you for the last 2 years? And what kind of reversion do we see an impact on margins over the next year or 2?

這真的很有幫助。然後相關地，隨著您的庫存開始正常化，您將有更多的清倉，並且需要減少滯銷的 SKU。在過去的 2 年中，這使您受益多少？我們認為未來一兩年的利潤率會出現什麼樣的逆轉？

I mean I wouldn't assume that that would go up per se. I mean we've always had inventories that ages, and we've always had to clear it. We've had warehouse sales for a while now. So I don't think there's anything there that is a significant shift, it should be concerning from a promotional stance or a margin perspective. Remember, most of what we sell is core. And so we're different than the apparel companies and so forth. And so as you get more inventory and you come back in stock, if it comes in late, there's a lot more pressure for them to push it out and get it out of the distribution center. For us, it's just a space play. And so we'll continue to have markdowns and things like that where we need to get rid of aged inventory, but there's no substantial shift that should occur.

我的意思是我不會假設這本身會上升。我的意思是，我們的庫存一直很陳舊，而且我們總是必須清理它。我們的倉庫銷售已經有一段時間了。因此，我認為沒有任何重大轉變，從促銷立場或利潤的角度來看，這應該是令人擔憂的。請記住，我們銷售的大部分產品都是核心產品。所以我們不同於服裝公司等等。因此，當您獲得更多庫存並且有庫存時，如果遲到，他們就會面臨更大的壓力，將其推出並從配送中心取出。對我們來說，這只是一場太空遊戲。因此，我們將繼續進行降價促銷之類的事情，我們需要擺脫陳舊的庫存，但不會發生實質性的轉變。

We'll take our next question from Anthony Chukumba with Loop Capital Markets.

我們將向 Loop Capital Markets 的 Anthony Chukumba 提出下一個問題。

Congrats as well on a great quarter, particularly given the tough sort of macro environment. So just a real quick question, just more of a clarifying question. In prior calls, and I don't mean to nitpick particularly given the fact that you had a really great quarter. But in prior calls, you talked about the emerging brands and gave us updates there in terms of comps and your thoughts there. And I was just wondering if you -- if there's any color you would provide on the emerging brand performance in the second quarter?

也祝賀一個偉大的季度，特別是考慮到艱難的宏觀環境。所以只是一個真正的快速問題，只是一個更明確的問題。在之前的電話會議中，我並不是要特別挑剔，因為你有一個非常棒的季度。但在之前的電話會議中，您談到了新興品牌，並就組合和您的想法向我們提供了更新。我只是想知道你是否 - 如果你會為第二季度的新興品牌表現提供任何顏色？

Yes. I'm so sorry, I didn't do that just absolutely because we are being more additive in our prepared remarks, we have more time for Q&A. But they're both really driving profitable growth. So Mark and Graham, let's see, Julie won't want me to give the specific -- can I give them a specific comp? I can tell you double digit, okay? Same with rejuvenation, double-digit comp on both these brands. And in Rejuvenation consumer and B2B business are both performing consistent to each other and seeing strong performance across DTC and retail and Rejuvenation. We still would love to have a few more stores because stores are really good in driving brand awareness for Rejuvenation.

是的。很抱歉，我沒有這樣做絕對是因為我們在準備好的評論中添加了更多內容，我們有更多的時間進行問答。但它們都在真正推動盈利增長。所以馬克和格雷厄姆，讓我們看看，朱莉不想讓我給出具體的——我可以給他們一個具體的組合嗎？我可以告訴你兩位數，好嗎？與復興相同，這兩個品牌的兩位數組合。在 Rejuvenation 中，消費者和 B2B 業務的表現彼此一致，並且在 DTC 以及零售和 Rejuvenation 方面表現出色。我們仍然希望有更多的商店，因為商店在提升 Rejuvenation 的品牌知名度方面非常好。

And in Mark and Graham, we're really -- we're pushing the trends that are post pandemic trends like travel, social sports, home entertaining as primary drivers of incremental brand growth. And we're seeing particularly resurgence of Tennis and Golf, Pickleball, fueling this business. It's a really fun gift business, and we're starting to see people really noticed us and come to us for their stuff. We're excited about both Mark and Graham and Rejuvenation as growth vehicles for our company.

在馬克和格雷厄姆，我們真的 - 我們正在推動流行趨勢後的趨勢，如旅行、社交運動、家庭娛樂，作為品牌增量增長的主要驅動力。我們特別看到網球和高爾夫、Pickleball 的複蘇，推動了這項業務。這是一項非常有趣的禮品業務，我們開始看到人們真正注意到我們並來找我們要他們的東西。我們對 Mark and Graham 和 Rejuvenation 作為我們公司的增長工具感到興奮。

Got it. No, that's really helpful. And yes, I appreciate you adding your comments, but don't edit your comments just so you can hear more questions from the likes of sell-side analysts like me. Anyway, just second real brief question. I mean, obviously, very strong free cash flow in the first half of this year. I would expect to see continuous strong free cash flow in the second half, you've been very aggressive about buying back stock. Obviously, you have the dividend. But how do you think about just near term about capital allocation, particularly like in the back half of this year?

知道了。不，這真的很有幫助。是的，我感謝您添加您的評論，但不要編輯您的評論，以便您可以聽到像我這樣的賣方分析師之類的更多問題。無論如何，只是第二個真正的簡短問題。我的意思是，顯然，今年上半年的自由現金流非常強勁。我預計下半年會看到持續強勁的自由現金流，你一直非常積極地回購股票。顯然，你有紅利。但是你如何看待近期的資本配置，尤其是今年下半年？

Yes. I mean we're going to continue with buybacks and our dividends, of course, maybe not to the same degree we'll see. Certainly, we still believe our stock is undervalued. It has recovered nicely. We're pleased that we were able to buy the stock back on average for about $138, and obviously, stock is much higher now, but it's still undervalued. And so we're going to continue as long as we have some really strong free cash flow and are generating this kind of earnings and cash that we are, we think the right thing to do is to return it to our shareholders. So we're still committed to doing that.

是的。我的意思是，我們將繼續進行回購和分紅，當然，可能不會達到我們將看到的相同程度。當然，我們仍然認為我們的股票被低估了。它恢復得很好。我們很高興我們能夠以大約 138 美元的平均價格買回該股票，顯然，現在股價要高得多，但它仍然被低估了。因此，只要我們有一些非常強勁的自由現金流並產生我們現在的這種收益和現金，我們就會繼續下去，我們認為正確的做法是將其返還給我們的股東。所以我們仍然致力於這樣做。

And I think also the buyback signals also the confidence we have in our guidance.

而且我認為回購也表明了我們對指導的信心。

We'll take our next question from Chuck Grom with Gordon Haskett.

我們將回答 Chuck Grom 和 Gordon Haskett 的下一個問題。

Nice quarter. On our math, it looks like your backlog release continues to gain steam, which is obviously a good thing for your customer. But is it possible to size up where you are today on the backlog versus maybe where you were last year? And is there a banner where the backlog levels are more severe than others?

漂亮的季度。根據我們的計算，您的待辦事項發布似乎繼續獲得動力，這對您的客戶來說顯然是一件好事。但是，是否有可能將您今天在積壓工作中的位置與您去年的位置進行比較？是否存在積壓級別比其他級別更嚴重的橫幅？

Yes. I mean we haven't disclosed the total amount, as you guys know, but it has come down, but it's still incredibly sizable. I think we may have said before that most of the back orders associated with furniture. So certainly, Pottery Barn and West Elm have a sizable amount of back orders, but every brand has them. And the good news is we are starting to bring that balance down, and certainly, that's a tailwind for the back half and as we move into 2023.

是的。我的意思是，正如你們所知，我們還沒有透露總金額，但它已經下降了，但它仍然非常龐大。我想我們之前可能已經說過大多數與家具相關的延期交貨。所以當然，Pottery Barn 和 West Elm 有大量的延期交貨，但每個品牌都有。好消息是我們開始降低這種平衡，當然，這對後半部來說是一個順風，隨著我們進入 2023 年。

Okay. And is there a banner that is higher? Would you say PB is higher than maybe Sonoma or West Elm?

好的。還有更高的橫幅嗎？你會說 PB 可能比 Sonoma 或 West Elm 高嗎？

Well, Sonoma is obviously lower, less furniture.

好吧，索諾瑪顯然更低，家具更少。

Pottery Barn is our largest brand.

Pottery Barn 是我們最大的品牌。

Okay. And then on the 9% or so increase in occupancy dollars year-over-year. It sounds like the distribution center openings are an incremental spend on that line item. I guess is there a way to think about the occupancy line over the next couple of quarters given those openings?

好的。然後入住率同比增長 9% 左右。聽起來配送中心的開口是該行項目的增量支出。考慮到這些空缺，我想有沒有辦法考慮接下來幾個季度的入住率？

Yes, it will be a little bit higher, kind of similar to where it has been now because of those incremental distribution centers. At the same time, we've had some offsite that should be coming off. We've got some incremental hubs that over time will come off. But I think the bigger play, as you know, is our retail real estate optimization strategy, and most of our stores that we plan on closing close at the end of the year. And so as you start to lap into the new year, you'll get the benefit again from that reduced occupancy costs associated with those stores. So -- but in the shorter term, yes, there will be pressure on that line.

是的，它會更高一點，有點類似於現在的位置，因為這些增量配送中心。同時，我們也有一些異地應該退出。我們有一些增量集線器隨著時間的推移會消失。但我認為，如您所知，更大的作用是我們的零售房地產優化策略，以及我們計劃在今年年底關閉的大部分商店。因此，當您開始進入新的一年時，您將再次從與這些商店相關的入住成本降低中受益。所以——但在短期內，是的，這條線上會有壓力。

We'll take our next question from Jonathan Matuszewski with Jefferies.

我們將向 Jefferies 的 Jonathan Matuszewski 提出下一個問題。

Nice quarter. First one was just on supply chain. Laura, you mentioned challenges still persist there. Just curious where you guys are from a diversification standpoint? I think a while ago, you mentioned reducing China exposure by half. So just curious how much there is to go on that initiative? That's my first question.

漂亮的季度。第一個只是在供應鏈上。勞拉，你提到挑戰仍然存在。只是好奇你們從多元化的角度來看在哪裡？我想不久前，您提到將中國的風險敞口減少一半。所以只是好奇有多少可以採取這一舉措？這是我的第一個問題。

Yes. I think that's an ongoing journey. We have significantly reduced the China exposure. What we're working on now is just having multiple high-quality vendors who can make some of our high-risk furniture for kids. it's been harder to find multiple vendors who can do that and to also do the -- yes, this has hit the sustainability mark that we're looking for. So we're really always looking for additional high-quality suppliers would be what I would say to that.

是的。我認為這是一個持續的旅程。我們顯著降低了中國的風險敞口。我們現在正在做的只是擁有多個高質量的供應商，他們可以為孩子們製作一些高風險的家具。很難找到能夠做到這一點並且也做到這一點的多家供應商——是的，這已經達到了我們正在尋找的可持續性標誌。所以我們真的一直在尋找更多的高質量供應商，這就是我要說的。

And the continuation out of China has happened, but it doesn't mean you're moving it to a place that is free of any other issues. There's a lot of different issues in all these places around the globe, including the domestic market. So we just have to have more options in terms of where we are. I think this is going to be a continued issue for a while because these factories are skittish to open to -- much further than they are and to accelerate given the recessionary fears that everyone has out there. So I think we're going to continue to see pressure on flow from some of the highest quality vendors.

中國的延續已經發生，但這並不意味著你要把它轉移到一個沒有任何其他問題的地方。全球所有這些地方都有很多不同的問題，包括國內市場。因此，就我們所處的位置而言，我們只需要有更多的選擇。我認為這將是一個持續一段時間的問題，因為鑑於每個人都對經濟衰退的擔憂，這些工廠不敢開放——比他們現在更遠，而且要加速。因此，我認為我們將繼續看到來自一些最優質供應商的流量壓力。

That's helpful. And then my follow-up question, Laura, you mentioned millennials and Gen Z, the fastest-growing cohorts you're seeing. So a question on marketing strategy for you. It feels like you guys are leaning in a bit deeper into brand ambassadors, influencer marketing from what we see on social media. You launched the West Elm collective not long ago. I never really thought about Gen Z as really a core demo for your business, but it is a group that leverages some of those channels. So just your thoughts on how you've been leaning in more to that channel, how impactful it's been? You guys have always done a good job with digital marketing. But it seems like you guys are making a bit more of a pivot at least from what we see. So any thoughts there in terms of the impact?

這很有幫助。然後我的後續問題，勞拉，你提到了千禧一代和 Z 世代，這是你所看到的增長最快的群體。所以一個關於營銷策略的問題給你。從我們在社交媒體上看到的內容來看，感覺就像你們更深入地了解品牌大使和影響者營銷。你不久前成立了 West Elm 集體。我從未真正將 Z 世代視為您業務的真正核心演示，但它是一個利用其中一些渠道的群體。所以只是你對你如何更傾向於那個頻道的想法，它有多大的影響？你們在數字營銷方面一直做得很好。但至少從我們所看到的來看，你們似乎正在做出更多的轉變。那麼在影響方面有什麼想法嗎？

It's interesting. Felix is just there with me and since he's still doing 2 jobs. I'm going to make a few comments, too. But video is very engaging. So whether it's video on TikTok, on our sites, on Insta, we're doing more video. And as much as a lot of millennials and Gen Z get credit for liking video, don't we all like video. The stuff we're doing for that generation, I think, is appealing to all, and we're certainly always pushing to try these new channels, whether it's Pinterest or TikTok, Snapchat. Pinterest, has been much better than I expected, frankly. And I think there's still a lot of room to go there. And the TikTok, Snapchat, YouTube group is also showing that their engagement is multilayered and different than just a product ad on Google. Felix, do you want add anything to that?

這真有趣。 Felix 就在我身邊，因為他還在做兩份工作。我也將發表一些評論。但是視頻非常吸引人。因此，無論是 TikTok 上的視頻、我們的網站上還是 Insta 上的視頻，我們都在製作更多視頻。儘管很多千禧一代和 Z 世代喜歡視頻，但我們不都喜歡視頻嗎？我認為，我們為那一代人所做的事情對所有人都有吸引力，而且我們當然一直在努力嘗試這些新渠道，無論是 Pinterest 還是 TikTok、Snapchat。坦率地說，Pinterest 比我預期的要好得多。而且我認為還有很大的空間可以去那裡。 TikTok、Snapchat、YouTube 小組也表明，他們的參與是多層次的，並且與穀歌上的產品廣告不同。菲利克斯，你想添加什麼嗎？

No, I think it's undeniable, the impact that TikTok has on customers of all ages, particularly those demographics to what you talked about. But they also -- they bring a couple of things. They extend the reach of our brand, they introduce our brand to new customers, but some of the design collaborations also bring new aesthetics. So it's about offering a diverse point of view or expression of our brands to customers so we can acquire more and introduce our customers to some of these new looks and some of these new influencers. So it's -- you're correct, we've leaned more into that because society has. And we're -- we want to make sure we're as relevant as we always have been.

不，我認為不可否認的是，TikTok 對各個年齡段的客戶的影響，尤其是您所談論的人口統計數據。但他們也 - 他們帶來了一些東西。它們擴大了我們品牌的影響力，將我們的品牌介紹給新客戶，但一些設計合作也帶來了新的美學。因此，這是為了向客戶提供我們品牌的多元化觀點或表達方式，以便我們能夠獲得更多信息，並向我們的客戶介紹其中一些新面貌和一些新影響者。所以它是 - 你是對的，我們更傾向於這個，因為社會有。而且我們 - 我們希望確保我們與以往一樣具有相關性。

We'll take our next question from Brad Thomas with KeyBanc Capital Markets.

我們將回答來自 KeyBanc Capital Markets 的 Brad Thomas 的下一個問題。

Let me add my congratulations as well. Great first half of the year here. It's a little early probably to talk about the holiday season, but that's obviously your most important quarter of the year. So wondering, Laura, Julie, if you could just comment a little bit about maybe from a merchandising standpoint, how you plan for this year, how you're thinking about the consumer and any differences in how it may show up here for the holidays? And any nuances of how the mix is a little bit different during that quarter?

讓我也祝賀一下。今年上半年在這裡很棒。現在談論假期可能有點早，但這顯然是你一年中最重要的季度。所以想知道，勞拉，朱莉，如果你能從商品的角度評論一下，你今年的計劃如何，你對消費者的看法以及它在假期裡可能會出現的任何差異?以及該季度的組合有何細微差別？

We love the holidays. And frankly, we have a great lineup, and it's always good to see the Halloween off to a good start, as I alluded to, in the kids business also off to really good start in PD and Williams-Sonoma, I should have said that. But we built on last year's great sellers. We sold out very fast last year of a lot of our key holiday products. And so we're going to get a chance to fully leverage those ideas that barely made it before last year. And we're excited about Williams-Sonoma. The Williams-Sonoma holiday season was disrupted last year by COVID. Let's remember, Thanksgiving was not exactly easy. I had many -- my family not be able to make Christmas because of COVID.

我們喜歡假期。坦率地說，我們有一個很棒的陣容，看到萬聖節有一個好的開始總是很好的.但我們建立在去年的暢銷產品之上。去年，我們的許多主要假日產品都很快售罄。因此，我們將有機會充分利用去年之前勉強實現的那些想法。我們對威廉姆斯-索諾瑪感到興奮。去年，威廉姆斯-索諾瑪的假期被 COVID 打亂了。讓我們記住，感恩節並不容易。我有很多——我的家人因為新冠病毒而無法過聖誕節。

So this year, it should be a much easier celebration for people to come together, and we're really looking forward to being a part of that and giving our customers great experience and great products to celebrate the holidays with and Felix and his team are really working on holiday preparedness right now on the website. And in fact, Felix, I think you had a meeting today with our district managers?

所以今年，人們聚在一起慶祝應該更容易，我們真的很期待成為其中的一部分，為我們的客戶提供豐富的體驗和優質的產品來慶祝節日，Felix 和他的團隊正在現在真的在網站上為假期做準備。事實上，菲利克斯，我想你今天和我們的地區經理開了個會？

Yes. I mean before this meeting, I spent 4 hours with our district managers across the country to come in and look at holiday because it is such an important part of our business, but it's critically important for retail. And so we walked through the assortment. I think everyone is super excited about it. Laura mentioned a number of things I'm excited about, but seasonal holidays are another one because there's always -- every single month, there's a reason to celebrate. And I can't -- there's no better brand to celebrate with than Williams-Sonoma. So I'm super optimistic about this holiday and holidays going forward for this brand. So stay tuned.

是的。我的意思是，在這次會議之前，我花了 4 個小時與全國各地的地區經理一起進來看看假期，因為它是我們業務的重要組成部分，但對零售業至關重要。所以我們走過了這個分類。我想每個人都對此感到非常興奮。 Laura 提到了許多令我興奮的事情，但季節性假期是另一回事，因為總有 - 每個月，都有慶祝的理由。我不能——沒有比威廉姆斯-索諾瑪更好的品牌來慶祝了。所以我對這個品牌的假期和未來的假期非常樂觀。所以請繼續關注。

We'll take our next question from Simeon Gutman with Morgan Stanley.

我們將向摩根士丹利的西蒙·古特曼提出下一個問題。

I wanted to ask about the tone of the consumer. Last quarter, there was some mentioning of, I think, some choppiness coming into this quarter. And it sounds like things have picked up and the sentiment has gotten better and demand comps have gotten better. I want to make sure that that's the right read and you're not seeing the tentativeness that maybe you were at the early part of the quarter?

我想問一下消費者的語氣。上個季度，我認為本季度出現了一些波動。聽起來事情已經好轉，情緒變得更好，需求補償也變得更好。我想確保那是正確的閱讀，你沒有看到你可能在本季度初期的試探性？

No, that's exactly right. I mean as we said in our last call, as we started that call or that quarter, we saw demand comps moderate. And we're really pleased and excited to see them coming back and accelerating and being strong, heading into third quarter. And so we haven't seen, again, what others are mentioning out there. So it's really different for certain retailers. And thankfully, we're one of those that are seeing real strength in our business.

不，完全正確。我的意思是，正如我們在上次電話會議中所說，當我們開始電話會議或那個季度時，我們看到需求比較溫和。我們非常高興和興奮地看到他們回來並加速並變得強大，進入第三季度。因此，我們還沒有看到其他人在那裡提到的內容。因此，對於某些零售商來說，情況確實不同。值得慶幸的是，我們是那些在我們的業務中看到真正實力的人之一。

I remember, we're only 3 weeks into the quarter, don't overread this, but this is -- this is what we meant to signal to you is exactly what Julie just said.

我記得，我們進入這個季度只有 3 週，不要過度閱讀這個，但這是 - 這就是我們要向你發出的信號，這正是 Julie 剛剛所說的。

And B2B, the growth, I'm assuming, is outpacing the house average in terms of comp. Can you share at least the spread? Is that spread widening? Is it narrowing? And is B2B concentrated among any of your brands?

我假設 B2B 的增長在薪酬方面超過了房屋平均水平。你能至少分享一下價差嗎？傳播範圍擴大了嗎？是不是變窄了？ B2B 是否集中在您的任何品牌中？

Yes. It's a consistent beat to last year in growth. And we're seeing also a lot of innovation from the brands to see B2B. So as we mentioned, bring in products that we can offer is a big part of the strategy and more contracts means more sales for B2B because they can do even more in the project. In terms of penetration, Rejuvenation by nature, a small business, but a large percent B2B, has always been. Trade has been a big part of that as people furnish hotels with their custom-configured lighting.

是的。與去年的增長相比，這是一個持續的節拍。我們還看到品牌在 B2B 方面的許多創新。因此，正如我們所提到的，引進我們可以提供的產品是戰略的重要組成部分，更多的合同意味著 B2B 的銷售更多，因為他們可以在項目中做更多的事情。在滲透率方面，Rejuvenation 本質上是一家小企業，但 B2B 的比例一直很高。貿易一直是其中的重要組成部分，因為人們為酒店配備了定製配置的照明設備。

But West Elm and Pottery Barn are really very strong in B2B and Williams-Sonoma has a lot of opportunity. We started. You've heard us talk about the gifts that we do with wins from the holidays, the business and there's a lot more room particularly as we expand the assortment in Williams-Sonoma Home because right now the assortment is so small, it's hard to do large-scale projects Williams-Sonoma Home, lots of opportunity across the board.

但是 West Elm 和 Pottery Barn 在 B2B 方面確實非常強大，Williams-Sonoma 有很多機會。我們開始了。你聽說過我們談論我們用假期、生意和更多的空間做的禮物，特別是當我們擴大 Williams-Sonoma Home 的分類時，因為現在分類太少了，很難做到大型項目 Williams-Sonoma Home，全線有很多機會。

We'll take our next question from Oliver Wintermantel with Evercore ISI.

我們將向 Evercore ISI 的 Oliver Wintermantel 提出我們的下一個問題。

I have a follow-up question for the B2B question from Simeon. Can you maybe give us a little bit more details what the margin is on the B2B business versus the rest of your business?

我有一個來自 Simeon 的 B2B 問題的後續問題。您能否向我們提供更多細節，B2B 業務相對於您的其他業務的利潤率是多少？

Yes. We said -- I mentioned this to you in the past, but it's accretive to our total company operating margin at this time. So as that business continues to grow, we get the incremental benefit on the bottom line.

是的。我們說 - 我過去曾向您提到過這一點，但此時它會增加我們公司的總營業利潤率。因此，隨著該業務的持續增長，我們在底線上獲得了增量收益。

Perfect. And then on the -- with now the success and also the -- not just the e-commerce but also in new stores, have you reconsidered closing what you disclosed before? I think it was 25% of your store base. Is that something that you're having a different look at now with your success over the last few quarters?

完美的。然後 - 現在的成功以及 - 不僅是電子商務，還有新商店，你是否重新考慮過關閉你之前披露的內容？我認為這是您商店基礎的 25%。隨著過去幾個季度的成功，您現在對這件事有不同的看法嗎？

Great question. We continue to reassess and review our real estate strategy. And while we have been closing stores, we've also had incredible success in repositioning and relocating stores in their current market. A perfect example in our backyard, we moved our Williams-Sonoma Corte Madera storage in a small space and they are off to a very strong start in that store. And then as I look at the other Williams-Sonoma stores that we've repositioned, they are outperforming their forecast too as customers embrace the new design that provides an improved inspirational shopping experience.

好問題。我們將繼續重新評估和審查我們的房地產戰略。雖然我們一直在關閉商店，但我們在重新定位和重新定位當前市場的商店方面也取得了令人難以置信的成功。我們後院的一個完美例子是，我們將 Williams-Sonoma Corte Madera 的儲藏室搬到了一個狹小的空間裡，他們在那家商店有了一個非常好的開端。然後，當我查看我們重新定位的其他 Williams-Sonoma 商店時，他們的表現也超過了他們的預期，因為客戶接受了提供改進的鼓舞人心的購物體驗的新設計。

So we look at this as an opportunity to improve our retail fleet, not to just think of it as a line item on the P&L. But of course, there are some stores that underperform or are in areas that are not as vibrant and we are always going to look for the best location in town.

因此，我們將此視為改善我們的零售車隊的機會，而不僅僅是將其視為損益表中的一個項目。但是，當然，有些商店表現不佳或位於不那麼活躍的地區，我們總是會尋找城裡最好的位置。

We'll take our next question from Marni Shapiro with Retail Tracker.

我們將使用零售跟踪器從 Marni Shapiro 那裡回答我們的下一個問題。

Congratulations. I do want to take again on the B2B, not to beat it up, I'm actually asking on the positive. Can you just talk a little bit about how the expense structure works there? I'm assuming you have a sales team. But it sounds like the products are coming from the brand. So is the design and R&D part coming from the brands? Because that feels like a really reliant way to leverage what's already done. And then could you just touch a little bit on the relaunch of Holds Everything because I thought the timing of it was interesting. And I always liked that brand? So I'm curious about that as well.

恭喜。我確實想再次參與 B2B，而不是打敗它，我實際上是在積極地詢問。你能談談那裡的費用結構是如何運作的嗎？我假設你有一個銷售團隊。但聽起來產品來自品牌。那麼設計和研發部分來自品牌嗎？因為這感覺像是一種非常可靠的方式來利用已經完成的事情。然後你能不能稍微談談 Holds Everything 的重新發布，因為我認為它的時機很有趣。我一直很喜歡那個牌子？所以我也很好奇。

Okay. Great. So you're absolutely right, Marni. The structure is we have a dedicated sales team. And then we have Jose who runs it, who's powerhouse looking and working with the brand presidents to identify opportunities for categories that appeal to our clients. So if she sees white space, she says, "Hey, let's work on this area." And then the brands work together and they develop new products or we have to get products contract grade approved, which most of them are, they were already and then some we had a test and then some we actually had to change to make them more durable, which, by the way, I think is pretty good for consumers to make something more durable. But as I'm looking at this incredible list of client examples, she's got not just the ones I mentioned. But whether it's Marriott headquarters hotel, Waldorf Astoria, Marriott Vacations, Hilton Boston, New Orleans, Charlotte Ceria Scottsdale, IHG Kimpton, InterContinental San Antonio, Hotel Indigo, Hyatt Regency, Huntington Beach, I mean, I could just go on and on and read you all these projects that we are doing that are so exciting. And it's just new space for us to be in, and it is that we want to furnish any space with new furniture. And so this has been just a wonderful partnership between the B2B team and the brand team.

好的。偉大的。所以你是絕對正確的，瑪尼。結構是我們有一個專門的銷售團隊。然後我們有 Jose 來管理它，他是一個強大的人，他正在尋找並與品牌總裁合作，以確定吸引我們客戶的類別的機會。因此，如果她看到空白區域，她會說，“嘿，讓我們在這個區域工作吧。”然後這些品牌一起合作，他們開發新產品，或者我們必須讓產品獲得合同等級批准，其中大多數已經是，然後我們進行了一些測試，然後我們實際上必須改變一些以使它們更耐用，順便說一句，我認為這對消費者來說是相當不錯的，可以讓一些東西更耐用。但是當我查看這個令人難以置信的客戶示例列表時，她不僅有我提到的那些。但無論是萬豪總部酒店、華爾道夫酒店、萬豪度假酒店、波士頓希爾頓酒店、新奧爾良、夏洛特塞里亞斯科茨代爾酒店、IHG 金普頓酒店、聖安東尼奧洲際酒店、英迪格酒店、凱悅酒店、亨廷頓海灘酒店，我的意思是，我可以繼續說下去閱讀我們正在做的所有這些令人興奮的項目。這對我們來說只是一個新的空間，我們想為任何空間配備新家具。因此，這只是 B2B 團隊和品牌團隊之間的一次美妙的合作。

And then the question on Hold Everything. So we only have (inaudible) everything back of the day, and then we close it, wasn't doing so well. But we saw an opportunity to distort just a relevant to bring it back really under the Williams-Sonoma banner. And we've designed and housed beautiful, high-quality products. And we just made it more visible on the site. And we have, I think, up to 50 products now. My favorite being the expandable storage organizer for your drawer, which if you check out, you'll see why it's great because there's versions of that online, but they really break and it makes your kitchen look like a custom kitchen and who doesn't want to be more organized. So it's been a very successful initiative and it's gaining steam, and it's real volume for us.

然後是關於保留一切的問題。所以我們只有（聽不清）當天的所有內容，然後我們關閉它，做得不太好。但是我們看到了一個機會，可以扭曲一個相關的東西，讓它真正回到威廉姆斯-索諾瑪的旗幟下。我們設計並提供了精美、高品質的產品。我們只是讓它在網站上更加明顯。我認為，我們現在擁有多達 50 種產品。我最喜歡的是抽屜的可擴展存儲組織者，如果你檢查出來，你會明白為什麼它很棒，因為網上有版本，但它們真的壞了，它讓你的廚房看起來像一個定制廚房，誰不想要更有條理。所以這是一個非常成功的舉措，它正在獲得動力，它對我們來說是真正的數量。

We'll take our final question from Kate McShane with Goldman Sachs.

我們將向高盛的 Kate McShane 提出最後一個問題。

I'm just going back to a previous question that was asked with regards to the freight cost. I just wondered if there was any way you could compare the cost between what you're experiencing in Q1 versus Q2? And how you expect that to change just because you have been dealing with backlogs and multiple deliveries for some time? I just was curious what the change was between quarters and going forward?

我只是回到之前關於運費的問題。我只是想知道是否有任何方法可以比較第一季度和第二季度的成本？僅僅因為一段時間以來您一直在處理積壓和多次交付，您期望這種情況會如何改變？我只是好奇季度和未來之間的變化是什麼？

Yes. I think the bigger change is in the ocean freight side of things and the dray and the demurrage as we're getting these big volumes of inventory coming in, there are containers that need to be moved around, need to be stored accordingly. And ocean freight rates, as has been the case for everybody, have gone up. And so that happened sort of I think it was May or June, and then as you know, those sort of charges get capitalized on the balance sheet as part of inventory, and so you don't recognize those until you make sales. So it's a function of turn, which is why we're starting to feel some of those more towards the back half. But that's the reason.

是的。我認為更大的變化是海運方面的事情以及拖車和滯期費，因為我們收到大量庫存，需要移動集裝箱，需要相應地存儲。和每個人的情況一樣，海運費已經上漲。所以這發生在我認為是 5 月或 6 月，然後如你所知，這些費用作為庫存的一部分在資產負債表上資本化，所以在你進行銷售之前你不會識別這些費用。所以這是一個轉身的功能，這就是為什麼我們開始感覺到一些更接近後半部分的原因。但這就是原因。

And ladies and gentlemen, this will conclude today's conference call. We appreciate your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連接。

Thank you. Appreciate your support. Happy shopping.

謝謝你。感謝您的支持。開心購物。