Williams-Sonoma Inc (WSM) 2023 Q1 法說會逐字稿

Welcome to the Williams-Sonoma, Inc. First Quarter 2023 Earnings Conference Call. (Operator Instructions)

歡迎來到 Williams-Sonoma, Inc. 2023 年第一季度收益電話會議。 （操作員說明）

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

我現在想把電話轉給首席會計官兼投資者關係主管傑里米布魯克斯。請繼續。

Good morning, 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 '23 and our long-term outlook.

早上好，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，我們將就未來事件和財務業績做出前瞻性陳述，包括對 23 財年的指導和我們的長期展望。

We believe these statements reflect our best estimates. However, we cannot make any assurances 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.

我們相信這些陳述反映了我們的最佳估計。但是，我們無法保證這些聲明一定會實現，實際結果可能與我們的預期大相徑庭。公司沒有義務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。

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 detailed reconciliation of non-GAAP measures to the most directly comparable GAAP measures appears in Exhibit 1 to the press release we issued earlier this morning. This call should also be considered in conjunction with our filings with the SEC.

此外，我們將參考某些非 GAAP 財務指標。這些措施不應被視為替代，應與我們的 GAAP 結果一起閱讀。非 GAAP 措施與最直接可比的 GAAP 措施的詳細調節出現在我們今天上午早些時候發布的新聞稿的附件 1 中。此電話會議還應與我們向美國證券交易委員會提交的文件一起考慮。

Finally, a replay of this call will be available on our Investor Relations website. Now I'd like to turn the call over to Laura Alber, our President and Chief Executive Officer.

最後，我們的投資者關係網站上將提供此次電話會議的重播。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。

Thank you, Jeremy. Good morning, everyone, and thank you for joining the call. I want to begin by thanking our strong team at Williams-Sonoma, Inc. for their talent and hard work in delivering another solid quarter of earnings despite a challenging macro backdrop. With our focus on compelling products, customer service and profitability, we achieved our financial expectations.

謝謝你，傑里米。大家早上好，感謝您加入電話會議。首先，我要感謝我們在 Williams-Sonoma, Inc. 的強大團隊，感謝他們的才華和辛勤工作，儘管宏觀背景充滿挑戰，但仍能實現又一個穩健的季度收益。通過專注於引人注目的產品、客戶服務和盈利能力，我們實現了財務預期。

We continue to distinguish ourselves as the world's largest digital-first, design-led, sustainable home retailer. What are the things that distinguish us? No other home furnishings company offers our in-house design capabilities and vertically integrated sourcing organization. This allows us to deliver high-quality, sustainable products at the best value to market that cannot be found anywhere else.

作為世界上最大的以數字為先、以設計為主導、可持續發展的家居零售商，我們繼續脫穎而出。是什麼讓我們與眾不同？沒有其他家居用品公司提供我們的內部設計能力和垂直整合的採購組織。這使我們能夠以最佳價值向市場提供高質量、可持續的產品，這是其他任何地方都找不到的。

Most importantly, it allows us to lead with innovation, distinguishing us from our competition. We are always looking for new opportunities to inspire our customers through our in-house design. From the new summer block prints and exclusive heritage quilts in Pottery Barn to the Viv Swivel Chair in West Elm to the compelling new dorm assortment in Pottery Barn Teen and the exclusive electronics and ergonomic tools in the Williams-Sonoma brand, our company leads with innovation.

最重要的是，它使我們能夠引領創新，使我們在競爭中脫穎而出。我們一直在尋找新的機會，通過我們的內部設計來激發我們的客戶。從 Pottery Barn 的全新夏季版畫和獨家傳統被子到 West Elm 的 Viv 轉椅，再到 Pottery Barn Teen 引人注目的新宿舍組合以及 Williams-Sonoma 品牌的獨家電子產品和人體工學工具，我們公司以創新引領潮流.

And just last week, we launched the newest brand in the Williams-Sonoma, Inc. portfolio, GreenRow. This new brand has been internally designed and developed, utilizing sustainable materials and manufacturing practices to create powerful, vintage-inspired heirloom quality products. GreenRow addresses white space within our portfolio and in the market. It is this type of innovation that distinguishes us within the home furnishings industry and most importantly, resonates with our customers.

就在上週，我們推出了 Williams-Sonoma, Inc. 產品組合中的最新品牌 GreenRow。這個新品牌是內部設計和開發的，利用可持續材料和製造實踐來創造強大的、復古風格的傳家寶品質產品。 GreenRow 解決了我們產品組合和市場中的空白問題。正是這種類型的創新使我們在家居行業中脫穎而出，最重要的是，引起了我們客戶的共鳴。

But not only are we innovators, we are operators. As you know, no other home furnishings company offers our digital-first but not digital-only channel strategy that's transforming the customer experience. With our proprietary e-commerce platform, we are one of the largest e-commerce players in the United States. And our in-house CRM and data analytics teams optimize our digital spend and customer connections.

但我們不僅是創新者，我們還是經營者。如您所知，沒有其他家居裝飾公司提供我們的數字優先而非純數字渠道戰略來改變客戶體驗。憑藉我們專有的電子商務平台，我們是美國最大的電子商務公司之一。我們的內部 CRM 和數據分析團隊優化了我們的數字支出和客戶關係。

And we operate a world-class retail business with our stores serving as billboards for our brands. They are beautifully designed and curated with aspirational assortments. Our retail optimization efforts have refocused our fleet on the most profitable, most inspiring and most strategic locations. And our omni capabilities are a competitive advantage in the market.

我們經營世界級的零售業務，我們的商店充當我們品牌的廣告牌。它們設計精美，精選各種令人嚮往的商品。我們的零售優化工作已將我們的車隊重新集中在最賺錢、最鼓舞人心和最具戰略意義的地點。我們的全方位能力是市場上的競爭優勢。

In Q1, examples of our operational excellence continued. We replatformed Rejuvenation's website, capturing new demand and driving higher conversions through enhanced imagery and an elevated customer experience. We managed our SG&A expense, leveraging our ad cost by limiting our spend to more proven efficient channels where customers show a higher level of intent to purchase. We made tough decisions to rightsize our organization to control costs and to drive focus and efficiency. We managed our receipts to control inventory levels. And we are making substantial progress on our customer service, which was affected by the pandemic.

在第一季度，我們卓越運營的例子繼續存在。我們對 Rejuvenation 的網站進行了平台改造，通過增強圖像和提升客戶體驗來捕捉新需求並推動更高的轉化率。我們管理我們的 SG&A 費用，通過將我們的支出限制在更有效的渠道上來利用我們的廣告成本，在這些渠道中，客戶表現出更高的購買意向。我們做出了艱難的決定，以調整我們的組織規模以控製成本並推動重點和效率。我們管理收據以控制庫存水平。我們在受大流行影響的客戶服務方面取得了實質性進展。

We have successfully improved customer metrics, including on-time delivery. We are working hard to rebalance inventory to reduce multiple and out-of-market shipments, both of which will improve service levels further and reduce costs. We are here to serve our customers. Without them, nothing else matters.

我們已經成功地改進了客戶指標，包括準時交貨。我們正在努力重新平衡庫存，以減少多次發貨和場外發貨，這兩者都將進一步提高服務水平並降低成本。我們在這里為我們的客戶服務。沒有他們，其他一切都不重要。

Lastly, we lead the home furnishings industry with our sustainability efforts and values-based culture. In Q1, we are recognized as one of the top 10 companies on Forbes list of America's Best Employers for Diversity in 2023. We were the highest ranking home furnishings retailer on the list.

最後，我們以可持續發展努力和基於價值觀的文化引領家居行業。在第一季度，我們被公認為福布斯 2023 年美國最佳多元化雇主排行榜前 10 名的公司之一。我們是榜單上排名最高的家居用品零售商。

Turning to the quarter. While our top line comp ran down 6%, our 2-year comp was 3.5%, our 4-year comp to 2019 was plus 46.5% and we delivered an operating margin of 12.9%, with earnings per share of $2.64, significantly above our prepandemic results.

轉向季度。雖然我們的收入下降了 6%，但我們 2 年的收入為 3.5%，我們到 2019 年的 4 年收入增加了 46.5%，我們的營業利潤率為 12.9%，每股收益為 2.64 美元，大大高於我們的預期大流行前的結果。

In terms of demand, our trend softened from negative mid-single digits in Q4 to down 10% in Q1. The softness in demand was most notable in our high-ticket furniture offerings, but we didn't see that same trend in our high-ticket electronics and kitchen offerings. These disparate trends tell that the customer is still spending. The diversification and durability within our portfolio of brands and product offerings positions us better than our competition with this shift in spending.

在需求方面，我們的趨勢從第四季度的負中個位數下降到第一季度的 10%。需求疲軟在我們的高價家具產品中最為明顯，但我們在高價電子產品和廚房產品中沒有看到同樣的趨勢。這些不同的趨勢表明客戶仍在消費。我們的品牌和產品組合的多樣化和持久性使我們在這種支出轉變中比競爭對手更勝一籌。

Now let's turn to more details in the brands. Pottery Barn ran down slightly with a negative 0.4% net comp in Q1, but ran 14% on a 2-year basis and 54.4% on a 4-year basis. We are seeing subdued demand in our furniture business, with customers demonstrating more caution on high-ticket considered purchases.

現在讓我們轉向品牌的更多細節。 Pottery Barn 第一季度的淨利潤略有下降，為負 0.4%，但 2 年和 4 年分別為 14% 和 54.4%。我們看到家具業務的需求低迷，客戶對考慮購買的高價商品表現出更加謹慎。

And in our outdoor business, we are seeing delayed purchasing until later in the summer season versus early spring. However, we are seeing strength in our exclusive decorating and textiles categories as customers choose to postpone bigger redesign projects to focus on easy updates, leveraging our beautiful print and pattern pillows, table linens, bedding and bath textiles, frames and decorative lighting.

在我們的戶外業務中，我們看到採購推遲到夏季晚些時候，而不是早春。然而，我們看到了我們獨家裝飾和紡織品類別的優勢，因為客戶選擇推遲更大的重新設計項目以專注於輕鬆更新，利用我們漂亮的印花和圖案枕頭、桌布、床上用品和浴室紡織品、框架和裝飾燈。

In PB, summer seasonal newness is off to a good start with strong demand for block print quilts and heritage patchwork quotes. The customer response to our Americana and coastal decorating across tabletop, textile and decor has been strong ahead of the Memorial Day weekend and should extend into the summer season. As we look to the year ahead, the brand has a strong lineup of textiles, decorating and entertaining products at a great value and we are increasing our marketing of these categories to drive performance.

在 PB，夏季季節性新品開局良好，對版畫被子和傳統拼布報價的需求強勁。在陣亡將士紀念日週末之前，客戶對我們在桌面、紡織品和裝飾方面的美式和沿海裝飾反應強烈，應該會延續到夏季。展望未來一年，該品牌擁有一系列價值不菲的紡織品、裝飾和娛樂產品，我們正在增加這些類別的營銷以推動業績。

The Pottery Barn children's business ran a negative 3.3% comp in Q1. It was a negative 6.4% on a 2-year basis, but ran positive 29.6% on a 4-year basis. We see pressure in some of our children's furniture categories, but we continue to see strength in many parts of the baby business. And we are focused on elevating the customer experience in these life stage businesses. For example, in our baby business, we saw strength in our GREENGUARD Gold nursery seating, personalized baby gifts and our curated selection of baby gear, which positions us well as a destination for the registry business. And in our stores and across our mobile app, customers can register with Pottery Barn Kids and receive help from our nursery experts.

Pottery Barn 兒童業務在第一季度的利潤為負 3.3%。 2 年期為負 6.4%，但 4 年期為正 29.6%。我們看到我們的一些兒童家具類別面臨壓力，但我們繼續看到嬰兒業務的許多部分的實力。我們專注於提升這些生命週期業務中的客戶體驗。例如，在我們的嬰兒業務中，我們看到了 GREENGUARD Gold 嬰兒床座椅、個性化嬰兒禮品和精選嬰兒用品的優勢，這使我們成為註冊業務的目的地。在我們的商店和我們的移動應用程序中，客戶可以註冊 Pottery Barn Kids 並獲得我們的托兒專家的幫助。

In our Teen brand, we are excited to have launched a compelling new dorm assortment, covering the needs of college-bound students with extra-long twin bedding and storage. Customers can shop online and ship products to any of our company stores near their college campus. Included in our dorm offer, we are excited to showcase our partnership with LoveShackFancy which has resonated with customers. Also, we are pleased with our first full quarter of results for our Pottery Barn Kids and Teen shopping apps. We are seeing customers respond to the easy-to-shop, thoughtfully designed experience and both apps are outperforming the mobile web across all KPIs.

在我們的 Teen 品牌中，我們很高興推出引人注目的全新宿舍系列，通過超長單人床和儲物空間滿足即將上大學的學生的需求。客戶可以在線購物並將產品運送到大學校園附近的任何一家公司商店。在我們的宿舍優惠中，我們很高興展示我們與 LoveShackFancy 的合作夥伴關係，這引起了客戶的共鳴。此外，我們對 Pottery Barn 兒童和青少年購物應用程序的第一個完整季度業績感到滿意。我們看到客戶對易於購物、精心設計的體驗做出了反應，並且這兩個應用程序在所有 KPI 方面的表現都優於移動網絡。

The West Elm brand continues to be the most affected by the tough macro environment. In Q1, West Elm ran a negative 15.8% and was negative 3% on a 2-year basis, but 51.1% positive on a 4-year basis. We're excited that Day Kornbluth started with the team as the new Brand President on April 3. She'll lead West Elm through its next chapter of growth, most immediately with a focus on 4 areas: one, industry-leading design and value; two, increasing brand awareness and customer acquisition; three, expanding into product white space; and four, leveraging channel growth opportunities.

West Elm 品牌仍然是受嚴峻宏觀環境影響最大的品牌。第一季度，West Elm 的負利率為 15.8%，兩年期負利率為 3%，但四年期利率為 51.1%。我們很高興 Day Kornbluth 於 4 月 3 日以新任品牌總裁的身份加入團隊。她將帶領 West Elm 開啟下一階段的增長，最直接的重點是 4 個領域：一個，行業領先的設計和價值;二、提高品牌知名度和客戶獲取；三、拓展產品空白；第四，利用渠道增長機會。

West Elm is our brand with the highest percentage of its assortment in furniture. We see opportunity in West Elm as it expands into textiles, decorating, accessories, entertaining and seasonal offerings. We continue to be very excited about the long-term growth trajectory of West Elm.

West Elm 是我們的品牌，在其家具種類中所佔比例最高。我們在 West Elm 看到了機會，因為它擴展到紡織品、裝飾、配飾、娛樂和季節性產品。我們繼續對 West Elm 的長期增長軌跡感到非常興奮。

The Williams-Sonoma brand ran a negative 4.4% comp in Q1. On a 2-year basis, the brand ran negative 6.7%, but positive 33.9% on a 4-year basis. The Williams-Sonoma team remains focused on increasing product exclusivity, innovation, relevant content and full price selling. We have a pipeline of innovative product launches and collaborations planned throughout the year, and we see new opportunities from the integration of the Williams-Sonoma Home furnishings assortment into our kitchen business. We remain confident in our ability to gain market share in the housewares industry.

Williams-Sonoma 品牌在第一季度的銷售額為負 4.4%。在 2 年的基礎上，該品牌負增長 6.7%，但在 4 年的基礎上增長 33.9%。 Williams-Sonoma 團隊仍然專注於提高產品的獨家性、創新、相關內容和全價銷售。我們全年計劃推出一系列創新產品和合作，我們看到了將 Williams-Sonoma 家居用品分類整合到我們的廚房業務中的新機遇。我們對我們在家庭用品行業獲得市場份額的能力充滿信心。

Now I'd like to update you on our growth initiatives, beginning with Business-to-Business. This business has 2 formats: trade and contract. The trade side of the business has been more impacted by the macro environment, but we continue to remain focused on the growth opportunity on the contract side. Contract grew mid-double digits in the quarter despite B2B running down 7% in total. We continue to win B2B accounts due to our design capabilities and a wide range of products offered in our multi-brand portfolio. And in fact, we have a stronger pipeline of projects currently out for bid compared to last year.

現在我想向您介紹我們的增長計劃，從企業對企業開始。該業務有 2 種格式：貿易和合同。業務的貿易方面受宏觀環境的影響更大，但我們繼續關注合同方面的增長機會。儘管 B2B 總量下降了 7%，但該季度的合同增長了兩位數。由於我們的設計能力和多品牌組合中提供的廣泛產品，我們繼續贏得 B2B 客戶。事實上，與去年相比，我們目前正在競標的項目數量更多。

Another growth initiative is our expansion into global markets. Our brand momentum continues to exceed expectations in the India market and we are driving growth through retail expansion with the opening of our third West Elm store, our second Pottery Barn store and our first Pottery Barn Kids store in Q3 2023. India is a strategic market as we expand globally, and we plan to open additional locations in 2024.

另一項增長計劃是我們向全球市場的擴張。我們的品牌勢頭繼續超出印度市場的預期，我們正在通過零售擴張推動增長，我們將於 2023 年第三季度開設第三家 West Elm 商店、第二家 Pottery Barn 商店和第一家 Pottery Barn Kids 商店。印度是一個戰略市場隨著我們在全球擴張，我們計劃在 2024 年開設更多地點。

Additionally, we are seeing strength across all of our brands in the Middle East led by strong design services. We'll be expanding in the region with the opening of an additional Pottery Barn and West Elm store in Saudi Arabia in Q2. Canada is also a highlight with digital representing our biggest growth opportunity for the market. We launched B2B in Q1 in Canada, and we look forward to introducing the Canadian customer to Rejuvenation, Mark and Graham and Williams-Sonoma Home with the launch of their websites later this year.

此外，在強大的設計服務的帶動下，我們在中東的所有品牌都實力強勁。我們將在第二季度在沙特阿拉伯開設一家新的 Pottery Barn and West Elm 商店，從而擴大在該地區的業務。加拿大也是一個亮點，數字代表了我們最大的市場增長機會。我們在第一季度在加拿大推出了 B2B，我們期待著在今年晚些時候推出網站時向加拿大客戶介紹 Rejuvenation、Mark and Graham 和 Williams-Sonoma Home。

In summary, we recognize that there is continued uncertainty with the environment and the consumer, but we operate in a highly fragmented market and we will continue to gain share by inspiring customers with our portfolio of strong brands and by building trust with a return to world-class customer service. And we will continue to generate strong profits.

總而言之，我們認識到環境和消費者持續存在不確定性，但我們在高度分散的市場中運營，我們將通過我們強大的品牌組合激勵客戶並通過回歸世界建立信任來繼續獲得份額-一流的客戶服務。我們將繼續產生可觀的利潤。

On the guidance front, we are only 1 quarter into the fiscal year with a lot more volume to come. We have a lineup of opportunities in our brands which, considered with our 2-year and 4-year trends, supports our 2023 guidance. As we indicated in Q4, the first half of the year will be tougher with the strong comps we are up against and the declining macro. But in the back half, our compares get easier and our supply chain cost pressures start to roll off. Looking past the short term, we remain confident in our long-term guidance and our opportunity to furnish our customers everywhere.

在指導方面，本財年僅進入 1 個季度，未來會有更多的交易量。我們的品牌擁有一系列機會，考慮到我們 2 年和 4 年的趨勢，這些機會支持我們的 2023 年指導方針。正如我們在第四季度指出的那樣，由於我們所面對的強勁競爭和宏觀經濟下滑，今年上半年將更加艱難。但在後半段，我們的比較變得更容易，我們的供應鏈成本壓力開始下降。展望短期，我們對我們的長期指導和我們為世界各地的客戶提供服務的機會充滿信心。

We have built a company of loved brands with a shared platform of competitive differentiators that lead the industry: in-house design, a digital-first but not digital-only platform and our values. We have identified opportunities for growth through strategic initiatives like B2B, Emerging Brands and Global where we have the opportunities to disrupt. We have a culture of innovation and an experienced team who knows how to increase operational efficiency, control costs, deliver world-class customer service and drive new growth opportunities.

我們已經建立了一家由深受喜愛的品牌組成的公司，擁有一個領先行業的競爭優勢共享平台：內部設計、數字優先但並非僅限數字的平台和我們的價值觀。我們已經通過 B2B、新興品牌和全球等戰略舉措確定了增長機會，我們有機會在這些領域進行顛覆。我們擁有創新文化和經驗豐富的團隊，他們知道如何提高運營效率、控製成本、提供世界一流的客戶服務並推動新的增長機會。

And finally, with our focus on compelling products and restoring world-class customer service, along with our financial discipline and our great team, we are confident that we will continue to deliver on our commitment to our customers, our employees and our shareholders, all of whom I'd like to thank for their support. Now I will turn it over to Jeff.

最後，憑藉我們專注於引人注目的產品和恢復世界一流的客戶服務，以及我們的財務紀律和優秀的團隊，我們相信我們將繼續履行我們對客戶、員工和股東的承諾，所有我要感謝他們的支持。現在我將把它交給 Jeff。

Thank you, Laura, and good morning, everyone. As Laura said, we're proud that we've delivered solid quarter of earnings in a challenging environment. On the top line, we continue to distinguish ourselves from the home furnishing industry through the strength of our proprietary in-house design, our family of strong and stable brands and our culture of innovation. On the bottom line, our operating margin demonstrates the resiliency of our profitability despite softer top line results and illustrates how the structural changes in our operating model support our long-term 15% operating margin floor.

謝謝勞拉，大家早上好。正如勞拉所說，我們很自豪我們在充滿挑戰的環境中實現了穩定的季度收益。最重要的是，我們憑藉專有的內部設計、我們強大而穩定的品牌系列以及我們的創新文化，繼續在家居行業中脫穎而出。歸根結底，我們的營業利潤率證明了儘管營收疲軟但我們的盈利能力具有彈性，並說明了我們運營模式的結構性變化如何支持我們 15% 的長期營業利潤率底線。

Before I walk through our Q1 results and our fiscal year '23 guidance, I'll first touch on our non-GAAP adjustments. As Laura said, we continue to distinguish ourselves through innovation and good operations. Laura touched on the innovation across our brands that will continue to propel our market share gains and the newest member of our family of brands, GreenRow.

在我介紹我們的第一季度業績和我們的 23 財年指南之前，我將首先談談我們的非 GAAP 調整。正如勞拉所說，我們將繼續通過創新和良好的運營來脫穎而出。勞拉談到了我們品牌的創新，這些創新將繼續推動我們的市場份額增長，以及我們品牌家族的最新成員 GreenRow。

On the operations side, we are committed to driving efficiency across all our operations. As part of this commitment, we undertook 3 key initiatives to drive efficiency in Q1 that resulted in our recording $26 million in non-GAAP expenses. First, we completed a company-wide reduction in force, rightsizing our teams domestically and internationally, primarily focused on corporate noncustomer-facing positions.

在運營方面，我們致力於提高所有運營的效率。作為這一承諾的一部分，我們採取了 3 項關鍵舉措來提高第一季度的效率，使我們的非 GAAP 支出達到 2600 萬美元。首先，我們完成了全公司範圍的裁員，對我們的國內和國際團隊進行了精簡，主要集中在企業非面向客戶的職位上。

Second, we closed our Southern West Coast upholstery manufacturing facility, moving our production from California to our lower-cost Southeastern U.S. facilities. Third, we exited our noncore Aperture SaaS business. Combined, these changes will result not only in an estimated annualized savings of $40 million, but also increased focus and efficiency across our corporate, supply chain and technology teams. For more details, please refer to the GAAP to non-GAAP schedule in our press release.

其次，我們關閉了我們的南西海岸內飾製造工廠，將我們的生產從加利福尼亞轉移到我們成本較低的美國東南部工廠。第三，我們退出了我們的非核心 Aperture SaaS 業務。結合起來，這些變化不僅會導致估計每年節省 4000 萬美元，而且還會提高我們公司、供應鍊和技術團隊的注意力和效率。有關詳細信息，請參閱我們新聞稿中的 GAAP 與非 GAAP 時間表。

Now let's dive into our Q1 results. As I do so, in addition to year-over-year results, I'll reference 2019 as it's helpful to compare our performance with prepandemic levels. Net revenues came in at $1.755 billion, slightly below our expectations. While comparable brand revenue growth on the 1-year stack came in at negative 6%, our 2-year stack grew 3.5% and our full year stack against 2019 grew 46.5%.

現在讓我們深入研究第一季度的結果。在我這樣做時，除了同比結果外，我還將參考 2019 年，因為這有助於將我們的表現與大流行前水平進行比較。淨收入為 17.55 億美元，略低於我們的預期。雖然 1 年堆棧的可比品牌收入增長為負 6%，但我們的 2 年堆棧增長了 3.5%，而我們的全年堆棧與 2019 年相比增長了 46.5%。

In demand, we were up against our toughest 1-year compare to the year, leading Q1 demand to come in at negative 10% on a 1-year stack. However, our demand was negative 1% on a 2-year stack and positive 46.7% on a 4-year stack. Our net revenues were driven by strong order fulfillment and timing of revenue recognition as we had less undelivered orders in Q1 than in Q4. For context, in a normalized environment, typically, there is a spread between demand and net comps.

在需求方面，我們遇到了與今年相比最艱難的 1 年，導致第一季度需求在 1 年堆棧中出現負 10%。但是，我們的需求在 2 年堆棧中為負 1%，在 4 年堆棧中為正 46.7%。我們的淨收入是由強勁的訂單履行和收入確認時間推動的，因為我們第一季度的未交付訂單少於第四季度。對於上下文，在規範化環境中，通常情況下，需求和淨補償之間存在差異。

Moving down the income statement. Gross margin at 38.6% was in line with our expectations. Coming in 520 basis points below last year, reflects the impact of the short-term supply chain costs and inefficiencies flowing through our income statement that we've been discussing in the past several quarters.

向下移動損益表。毛利率為 38.6%，符合我們的預期。比去年低 520 個基點，反映了我們過去幾個季度一直在討論的損益表中短期供應鏈成本和效率低下的影響。

Merchandise margins decreased from last year as we experienced the full effect of the capitalized costs from higher product costs, ocean freight, detention and demerge into our income statement. This was partially offset by the higher pricing power, our proprietary products command and by our ongoing commitment to forgo site-wide promotions.

商品利潤率較去年有所下降，因為我們經歷了更高的產品成本、海運、滯留和拆分到我們的損益表中的資本化成本的全部影響。這部分被更高的定價權、我們的專有產品控制以及我們放棄全站促銷的持續承諾所抵消。

Selling margin continue to be impacted by higher outbound customer shipping costs as well. We continue to incur these higher costs to best serve our customers by shipping from out-of-market distribution centers and, in some cases, shipping multiple times for multiunit orders, which typically would have been fulfilled in a single shipment.

銷售利潤率也繼續受到較高的出境客戶運輸成本的影響。我們繼續承擔這些更高的成本，通過從場外配送中心發貨來為我們的客戶提供最好的服務，並且在某些情況下，為多件訂單發貨多次，這通常會在一次發貨中完成。

We're working hard to rebalance our inventory composition and regional inventory location to improve our customer service. As Laura touched on, we are pleased with the improvements in customer service we are already seeing, and we expect customer service will continue to improve over the course of 2023. Altogether, our selling margins were 350 basis points lower than last year. We estimate more than 300 of the 350 basis points are attributable to the short-term supply chain costs and inefficiencies I just discussed. At 38.6%, our Q1 gross margin remains 270 basis points higher than 2019's 35.9%. And that's inclusive of absorbing these more than 300 basis points in supply chain-related costs and inefficiencies.

我們正在努力重新平衡我們的庫存構成和區域庫存位置，以改善我們的客戶服務。正如勞拉所說，我們對已經看到的客戶服務改善感到滿意，我們預計客戶服務將在 2023 年繼續改善。總而言之，我們的銷售利潤率比去年低 350 個基點。我們估計 350 個基點中有 300 多個可歸因於我剛才討論的短期供應鏈成本和效率低下。我們第一季度的毛利率為 38.6%，比 2019 年的 35.9% 高出 270 個基點。這包括吸收與供應鏈相關的成本和低效率方面的 300 多個基點。

Occupancy costs at 11.5% of net revenues were 170 basis points above last year with occupancy dollars increasing 8.6% to approximately $202 million. Our ongoing retail store optimization initiatives partially offset incremental costs from our new distribution centers on both the East and West Coast.

佔用成本占淨收入的 11.5%，比去年高出 170 個基點，佔用費用增長 8.6% 至約 2.02 億美元。我們正在進行的零售店優化計劃部分抵消了我們在東海岸和西海岸的新配送中心的增量成本。

These new distribution centers will support our long-term growth, improve service time for our customers and drive cost efficiencies over time. Our 250 basis points leverage versus 2019's 14% occupancy rate demonstrates the impact of our higher e-com mix and retail optimization has had on our gross margin.

這些新的配送中心將支持我們的長期增長，改善我們客戶的服務時間，並隨著時間的推移提高成本效率。我們的 250 個基點槓桿率與 2019 年 14% 的入住率相比表明我們更高的電子商務組合和零售優化對我們的毛利率產生了影響。

Our SG&A rate continues to be at a historic low for Q1 at 25.7%, leveraging 100 basis points over last year. This reflects our financial discipline and ability to control costs in a challenging environment. We held employment expenses as a rate of revenues flat to last year as we managed variable employment costs in accordance with our top line trends.

我們的 SG&A 率在第一季度繼續處於 25.7% 的歷史低位，比去年高 100 個基點。這反映了我們的財務紀律和在充滿挑戰的環境中控製成本的能力。由於我們根據收入趨勢管理可變就業成本，因此我們將就業費用與收入的比率持平於去年。

Our advertising leverage continues to reflect the agile, performance-driven proficiency of our marketing team. Our in-house capabilities, first-party data and multi-brand platform are an underappreciated competitive advantage that allow us to drive efficient advertising spend in near real time as we see trends evolve in the business. Overall, SG&A came in 320 basis points lower than 2019's SG&A rate of 28.9%. This once again highlights the impact of our higher e-com mix and retail optimization on our profitability.

我們的廣告影響力繼續反映出我們營銷團隊敏捷、以績效為導向的熟練程度。我們的內部能力、第一方數據和多品牌平台是一項未被充分認識的競爭優勢，它使我們能夠在看到業務發展趨勢時近乎實時地推動高效的廣告支出。總體而言，SG&A 比 2019 年 28.9% 的 SG&A 率低 320 個基點。這再次凸顯了我們更高的電子商務組合和零售優化對我們盈利能力的影響。

With regard to the bottom line, we are pleased with our results despite the quarter's declining macroeconomic backdrop. Q1 operating income came in at $226 million, and operating margin at 12.9%. While down 420 basis points below last year, 12.9% stands 590 basis points above 2019's 7%.

關於底線，儘管本季度宏觀經濟背景下滑，但我們對我們的業績感到滿意。第一季度營業收入為 2.26 億美元，營業利潤率為 12.9%。雖然比去年下降了 420 個基點，但 12.9% 比 2019 年的 7% 高出 590 個基點。

These results reflect the durability of our profitability and underpin our 15% operating margin long-term guidance, [and that's another] quarter marked by significant macroeconomic headwinds, softer top line results and over 300 basis points in short-term supply chain-related cost pressures.

這些結果反映了我們盈利能力的持久性，並支撐了我們 15% 的營業利潤率長期指導，[這是另一個] 宏觀經濟逆風、疲軟的頂線結果和短期供應鏈相關成本超過 300 個基點的季度壓力。

Our diluted earnings per share of $2.64 was $0.86 or 25% below last year's record first quarter earnings per share of $3.50, but significantly above 2019's earnings per share of $0.81. On the balance sheet, we ended the quarter with a cash balance of $297 million with no debt outstanding. This is inclusive of investing $50 million in capital expenditures supporting our long-term growth, paying $58 million in quarterly dividends and opportunistically repurchasing [300 million] or 3.8% of shares outstanding, congruent with our commitment to maximizing shareholder value.

我們的稀釋後每股收益為 2.64 美元，比去年創紀錄的第一季度每股收益 3.50 美元低 0.86 美元或 25%，但遠高於 2019 年每股收益 0.81 美元。在資產負債表上，我們在本季度末的現金餘額為 2.97 億美元，沒有未償債務。這包括投資 5000 萬美元用於支持我們的長期增長的資本支出，支付 5800 萬美元的季度股息，以及機會主義地回購 [3 億] 或 3.8% 的已發行股票，這與我們實現股東價值最大化的承諾一致。

Merchandise inventories, which include in-transit inventory, at $1.402 billion were essentially flat year-over-year, while inventory on hand increased 28% over last year. Two important points to emphasize here once again. First, our inventory on hand increase continues to be skewed by last year's pandemic-related supply chain disruption, creating an artificially low base. An apples-to-apples comparison versus 2019 highlights how we've improved our inventory turnover as our on-hand inventory levels have increased only 19% against revenue growth of over 41% during that time. Second, our lower balance sheet inventory growth reflects a 46% reduction in merchandise in transit as we've aligned our future on order with cautious forward-looking demand given our Q1 trends and the macroeconomic outlook.

包括在途庫存在內的商品庫存為 14.02 億美元，同比基本持平，而手頭庫存比去年增長 28%。這裡要再次強調兩個要點。首先，我們手頭庫存的增長繼續受到去年與大流行相關的供應鏈中斷的影響，人為地壓低了基數。與 2019 年的同類比較突顯了我們如何提高庫存周轉率，因為我們的現有庫存水平僅增加了 19%，而同期收入增長超過 41%。其次，我們較低的資產負債表庫存增長反映了在途商品減少 46%，因為我們根據第一季度的趨勢和宏觀經濟前景將我們的未來訂單與謹慎的前瞻性需求結合起來。

Summing up our Q1, we are pleased to have delivered results in line with our expectations. We continue to distinguish ourselves within a fragmented home furnishings industry. Our operating margin demonstrates the resiliency of our profitability and our ability to maintain at least a 15% operating margin over the long term. I want to thank all our associates for their hard work and dedication in delivering these results in a challenging environment.

總結我們的第一季度，我們很高興交付了符合我們預期的結果。我們繼續在分散的家居裝飾行業中脫穎而出。我們的營業利潤率證明了我們盈利能力的彈性以及我們長期保持至少 15% 營業利潤率的能力。我要感謝我們所有的員工在充滿挑戰的環境中為取得這些成果所做的辛勤工作和奉獻。

Now let's turn to our guidance for 2023. As we look to the balance of the year, we are reiterating our fiscal '23 guidance. We recognize there is uncertainty in the macro and the consumer is becoming increasingly cautious, but this is our best estimate based on the facts and trends we know today.

現在讓我們談談我們對 2023 年的指導。在展望今年的餘額時，我們重申了我們的 23 財年指導。我們認識到宏觀經濟存在不確定性，消費者變得越來越謹慎，但這是我們根據當今已知的事實和趨勢做出的最佳估計。

On the top line, extrapolating our 2- and 4-year trends in Q1 to full year '23 revenues land us within our guidance range. Specifically, our Q1 2-year trend yields full year revenues at the low end of guidance, while our Q1 4-year trend yields full year revenues between the midpoint and high end of guidance. On the bottom line, our Q1 results project our operating margin landing within our guidance, especially with the cost reductions we undertook this quarter. We continue to anticipate the first half of the year will be materially tougher.

最重要的是，將我們在第一季度的 2 年和 4 年趨勢外推到 23 年全年的收入，使我們處於我們的指導範圍內。具體而言，我們的第一季度 2 年趨勢產生的全年收入處於指導的低端，而我們的第一季度 4 年趨勢產生的全年收入介於指導的中點和高端之間。最重要的是，我們第一季度的業績表明我們的營業利潤率在我們的指導範圍內，尤其是在我們本季度進行的成本削減之後。我們繼續預計今年上半年將更加艱難。

On the top line, our year-over-year demand comparisons and last year's high back order fill, coupled with the declining macro will yield negative comps. On the bottom line, we continue to foresee gross margin pressures as the supply chain cost sitting on our balance sheet continue to amortize into our income statement as well as ongoing incremental shipping costs to service our customers.

最重要的是，我們的同比需求比較和去年的高訂單補貨，再加上宏觀經濟的下滑，將產生負面影響。最重要的是，我們繼續預見到毛利率壓力，因為我們資產負債表上的供應鏈成本將繼續攤銷到我們的損益表中，以及為客戶提供服務的持續增量運輸成本。

In the back half of the year, these headwinds should turn into tailwinds as our top line year-over-year comparisons get easier and our gross margin pressures become tailwinds that support our profitability. As we look beyond 2023, we remain confident in the long-term fundamentals of our business. We believe our long-term growth algorithm will continue to drive mid- to high single-digit top line growth with operating margins exceeding a floor of 15%.

在今年下半年，這些逆風應該會變成順風，因為我們的收入同比比較變得更容易，我們的毛利率壓力會變成支持我們盈利能力的順風。展望 2023 年以後，我們對我們業務的長期基本面仍然充滿信心。我們相信我們的長期增長算法將繼續推動中高個位數的收入增長，營業利潤率超過 15%。

As the world's largest digital-first, design-led, sustainable home retailer, we're committed to furnishing our customers everywhere. And we're confident that we'll continue to outperform our peers and deliver profitable growth for these reasons: our ability to gain market share in a fractured home furnishings industry, the strength of our in-house proprietary design, the competitive advantage of our digital-first, but not digital-only channel strategy, the ongoing strength of our growth initiatives and the resiliency of our fortress balance sheet.

作為全球最大的以數字為先、以設計為主導、可持續發展的家居零售商，我們致力於為世界各地的客戶提供家具。我們有信心，我們將繼續超越同行並實現盈利增長，原因如下：我們在支離破碎的家居裝飾行業中獲得市場份額的能力、我們內部專有設計的實力、我們的競爭優勢數字優先，但不是僅限數字的渠道戰略，我們增長計劃的持續實力以及我們堡壘資產負債表的彈性。

With that, I'll open the call for questions.

有了這個，我將打開問題電話。

(Operator Instructions) Cristina Fernández with Telsey Advisory Group.

（操作員說明）Cristina Fernández 與 Telsey Advisory Group。

I wanted to see if you could expand on the demand. You gave a good amount of color, but is the consumer still focused on, I mean, full price selling? And how are you conveying value to the customer in this environment?

我想看看你是否可以擴展需求。你給了很多顏色，但消費者是否仍然關注，我的意思是，全價銷售？在這種環境下，您如何向客戶傳達價值？

Thanks, Cristina. It's been since Labor Day last year where we've seen choppiness in our demand across brands, channels, categories. It's no wonder because of the housing, higher rates, job loss, it does make the customer more cautious. However, it is clear that the customer is still spending and our portfolio of brands, our omni platform and our positioning allows us to compete better than our competition. We can serve our customers across a wide range of price points, product categories and aesthetics. And while we are seeing softness in our furniture business, we are also seeing quite a lot of strength in our high-end electrics and kitchen business.

謝謝，克里斯蒂娜。自去年勞動節以來，我們就看到了跨品牌、渠道和品類的需求波動。難怪因為住房、更高的利率、失業，這確實讓客戶更加謹慎。然而，很明顯，客戶仍在消費，我們的品牌組合、我們的全平台和我們的定位使我們能夠比我們的競爭對手更好地競爭。我們可以為客戶提供廣泛的價位、產品類別和美學服務。雖然我們看到家具業務疲軟，但我們也看到高端電器和廚房業務相當強勁。

And so there's areas where we are shifting our focus, particularly on our marketing. Customers are interested in easy updates for their house. They are entertaining at home, they are cooking at home and they are buying gifts. The recent news about some of the large-scale retailers like Bed Bath & Beyond going out of business gives us a wonderful opportunity to pick up even more market share. There's a lot out there that they served, whether it be dorm or baby and wedding registry that are areas of focus for us but are really going to be exaggerated now that we see the opportunity.

因此，我們正在轉移注意力的領域，尤其是我們的營銷領域。客戶對他們房屋的簡單更新很感興趣。他們在家招待，在家做飯，在買禮物。最近有關 Bed Bath & Beyond 等一些大型零售商倒閉的消息為我們提供了獲得更多市場份額的絕好機會。他們有很多服務，無論是宿舍還是嬰兒和婚禮登記，這些都是我們關注的領域，但現在我們看到機會真的會被誇大。

So we are seeing some subdued areas, we also see that they are buying at full price the things that they are really looking for that are unique and that gives them the ability to update their home, which is so important to them without making that very large scale purchase.

所以我們看到一些低迷的地區，我們也看到他們以全價購買他們真正想要的東西，這些東西是獨一無二的，這讓他們有能力更新他們的家，這對他們來說非常重要，但又不至於讓那變得非常大規模採購。

And then as a follow-up, on the revenue guidance for the year, if the environment stays the same, I guess, how are you thinking about specific, either brand merchandising initiatives or as you commented, market share gains from Bed Bath that would allow you to hit the guidance range you laid -- you maintained today?

然後作為後續行動，關於今年的收入指導，如果環境保持不變，我想，你如何考慮具體的品牌營銷計劃，或者如你所評論的那樣，Bed Bath 的市場份額增長將讓你達到你設定的指導範圍——你今天保持的？

I'm going to start by letting Jeff talk about our approach to the guidance range.

我首先讓 Jeff 談談我們對指導範圍的方法。

Thank you, Laura. So we recognize that there's still uncertainty in the macro and the consumer is becoming increasingly cautious. As I said in my prepared remarks, if we extrapolate our 2- and 4-year trends in Q1, it lends us within our guidance range. And we've talked a lot about how the first half of the year is going to be materially tougher, especially on the top line, we're up against last year's more higher demand comps and the back order fill. But the back half is a different story, where our demand really started to decelerate last year after Labor Day. And that's where some of our headwinds right now should become tailwinds.

謝謝你，勞拉。所以我們認識到宏觀仍然存在不確定性，消費者變得越來越謹慎。正如我在準備好的發言中所說，如果我們推斷第一季度的 2 年和 4 年趨勢，它就會在我們的指導範圍內。我們已經談了很多關於今年上半年將如何變得更加艱難的問題，尤其是在收入方面，我們面臨著去年更高的需求和延期交貨訂單。但後半部分是另一回事，去年勞動節後我們的需求真正開始減速。這就是我們現在的一些逆風應該變成順風的地方。

On the -- respect to things like Bed Bath & Beyond, that's an area where we continue to believe we gain market share. It's clear to us we're gaining our share of the Bed Bath & Beyond volume up for grabs. For example, in the Williams-Sonoma brand, we're picking up share in kitchen electrics and registry. In Kids, we're picking up share from buybuy BABY. Those customers want certainty when decorating their nurseries and know that the store they're buying from will still be there in a few months. And in Teen, we're seeing an early benefit in dorm that we anticipate will ramp as we hit the back-to-school season.

關於 - 關於 Bed Bath & Beyond 之類的東西，這是我們繼續相信我們獲得市場份額的領域。我們很清楚，我們正在搶占 Bed Bath & Beyond 的份額。例如，在 Williams-Sonoma 品牌中，我們正在獲取廚房電器和註冊市場的份額。在 Kids 中，我們正在從 buybuy BABY 中獲取份額。這些顧客在裝飾他們的托兒所時想要確定性，並且知道他們購買的商店在幾個月後仍然存在。在青少年中，我們看到了宿舍的早期好處，我們預計隨著返校季的到來，這種好處將會增加。

Bottom line is we think we're positioned to -- well positioned to gain market share in this fractured home furnishings industry with our in-house design, our digital-first, but not digital-only channel strategy and our strong and stable portfolio of brands.

底線是我們認為我們有能力通過我們的內部設計、我們的數字優先但不是純數字的渠道戰略以及我們強大而穩定的產品組合，在這個支離破碎的家居行業中獲得市場份額。品牌。

Your next question will come from the line of Max Rakhlenko with TD Cowen.

您的下一個問題將來自 Max Rakhlenko 與 TD Cowen 的合作。

All right. Great. So first, just staying on the reiterated guidance. For top line, how much breathing room do you think that you're giving yourself for second half of the year? Especially, I think, you said demand comps was down 10% in 1Q and then B2B is also softening.

好的。偉大的。因此，首先，只需堅持重申的指導方針。對於頂線，您認為下半年您會給自己多少喘息空間？特別是，我認為，你說第一季度需求下降了 10%，然後 B2B 也在走軟。

Max, we -- like I spoke to in the last question in my prepared remarks, when we extrapolate our 2- and 4-year trends in Q1, it lands us pretty squarely in the guidance range. And so if you think about what that range could be, very specifically, our 2-year trend in Q1 land us at the low end, but our 4-year trend, which has been very consistent over Q1, land us between the midpoint and high end of guidance. So looking at that, combined with opportunities we have in the brand, what's happening in the market with people exiting like Bed Bath & Beyond, some of the smaller players who don't have the balance sheet to withstand some of the current pressures, we see there's opportunity for us to gain market share.

Max，我們 - 就像我在準備好的發言中的最後一個問題中所說的那樣，當我們推斷第一季度的 2 年和 4 年趨勢時，它使我們完全處於指導範圍內。因此，如果你考慮這個範圍可能是多少，非常具體地說，我們在第一季度的 2 年趨勢使我們處於低端，但我們的 4 年趨勢在第一季度非常一致，使我們介於中點和高端指導。因此，看看這一點，結合我們在品牌中擁有的機會，市場上正在發生的事情，人們退出 Bed Bath & Beyond，一些沒有資產負債表來承受當前壓力的小公司，我們看到我們有機會獲得市場份額。

Got it. Okay. Fair enough. And then can you speak specifically to product margins in 1Q, how they look compared to last year in prepandemic and the key drivers there? And then just how should we think about gross margin cadence for the remainder of the year? And how much of the pressure from second half of last year do you think that you can get back this year versus some of that continuing into next year?

知道了。好的。很公平。然後，您能否具體談談第一季度的產品利潤率，與去年大流行前的產品利潤率相比如何，以及那裡的主要驅動因素？那麼我們應該如何考慮今年剩餘時間的毛利率節奏？去年下半年的壓力有多大，你認為今年可以恢復，而有些壓力會持續到明年？

Yes. I think if you take a look at it, we don't break out product margins separate from our selling margins. But if we look at it all together, selling margins were down 350 basis points, driven by lower merch margins and higher shipping costs. As we've been talking about for several quarters, our merch margins reflect the full impact of the capitalized cost in our balance sheet from higher product costs, ocean freight, the tension and demerge that are now flowing through our income statement. And on the selling margins, it continues to reflect the additional costs we've incurred shipping multiple items to customers as I've enumerated.

是的。我想如果你看一下，我們不會將產品利潤率與我們的銷售利潤率分開。但如果我們綜合來看，由於商品利潤率下降和運輸成本上升，銷售利潤率下降了 350 個基點。正如我們幾個季度以來一直在談論的那樣，我們的商品利潤率反映了我們資產負債表中資本化成本的全部影響，這些影響來自更高的產品成本、海運費、現在流經我們損益表的緊張局勢和分拆。在銷售利潤率方面，它繼續反映了我們向客戶運送多件商品所產生的額外成本，正如我所列舉的那樣。

When we think about it, in terms of the back half, it's really what we keep talking about in terms of headwinds and tailwinds. We quantified in the call that altogether, these incremental short-term costs accounted for over 300 basis points of the 350 basis points decline in our gross margin as well as our selling margin. So we see that in the back half, the main point is we've been guiding that we have near-term cost pressures that are a headwind, but in the back half, this will become a tailwind as we look to the back half of '23 and into '24.

當我們考慮它時，就後半部分而言，這確實是我們一直在談論的逆風和順風。我們在電話會議中量化說，這些增量短期成本總共占我們毛利率和銷售利潤率下降 350 個基點的 300 多個基點。所以我們看到，在後半部分，主要的一點是我們一直在指導我們的近期成本壓力是逆風，但在後半部分，當我們展望後半部分時，這將成為順風'23 和 '24。

Got it. And then just maybe more specifically on promos, curious how those look, both versus last year and then prepandemic levels.

知道了。然後可能更具體地在促銷上，好奇那些看起來如何，與去年和大流行前的水平相比。

We are maintaining our stance on not running site-wide promos and only marking down things where we have a little bit too much inventory. And we are comped in our current Memorial Day promotion that we're running this year. We do that, I'd say, quarterly to reduce our overstocks and keep our inventory as clean as possible. and you're going to just continue to see us take markdowns where we need to.

我們維持我們的立場，即不在全站範圍內進行促銷活動，只在庫存過多的地方進行標記。我們參加了今年正在進行的陣亡將士紀念日促銷活動。我想說，我們每季度這樣做一次，以減少積壓庫存並儘可能保持庫存清潔。你會繼續看到我們在需要的地方進行降價。

(Operator Instructions) Your next question will come from the line of Simeon Gutman with Morgan Stanley.

（操作員說明）您的下一個問題將來自 Simeon Gutman 與摩根士丹利的合作。

Laura, Jeff, I wanted to ask first about the 14% to 15%. I know it said above 15% in the long-term guidance. Can you talk about the path and how much you'll protect that, especially if we see a weaker consumer continue through the back half of the year. Are you intent on protecting this number through cost efficiency, et cetera? Or could we see that dip below and then a return back to some of the longer-term ranges?

勞拉，傑夫，我想先問一下 14% 到 15%。我知道它在長期指導中說超過 15%。你能談談路徑以及你將在多大程度上保護它，特別是如果我們看到下半年消費者繼續疲軟。您是否打算通過成本效率等方式保護這個數字？或者我們可以看到跌破然後回到一些長期範圍嗎？

Simeon, thank you for the question. I love talking about operating margin. We are very confident in our guidance for fiscal year '23 at the 14% to 15%. If you take a look at where it's coming from in terms of our SG&A leverage, we are very focused on our cost control, managing our employment expenses, which we can flex with sales and managing our advertising costs, which you can see in Q1, we leveraged to drive the SG&A leverage there.

西蒙，謝謝你的提問。我喜歡談論營業利潤率。我們對 23 財年 14% 至 15% 的指導非常有信心。如果你看看它在我們的 SG&A 槓桿方面的來源，我們非常專注於我們的成本控制，管理我們的僱傭費用，我們可以通過銷售和管理我們的廣告成本來調整，你可以在第一季度看到，我們利用槓桿來推動那裡的 SG&A 槓桿。

And if I think about the back half of the year and where we're headed, we've quantified that of the 350 basis points decline in selling margin year-over-year, 300 of that we attribute to the short-term supply chain costs and efficiencies we've been talking to. That gives us a lot of room and a lot of confidence to be able to hit the 14% to 15% guidance. And then we throw on top of that, the restructuring charges we took in Q1, which should add $40 million annualized to fiscal year '23, which only a small portion of which actually hit in Q1. That adds another, say, 45, 50 basis points to our opportunity to hit the 14% to 15%.

如果我考慮下半年以及我們的發展方向，我們已經量化了銷售利潤率同比下降 350 個基點，其中 300 個歸因於短期供應鏈我們一直在談論的成本和效率。這給了我們很大的空間和很大的信心來達到 14% 到 15% 的指導。然後我們最重要的是，我們在第一季度採取的重組費用，這應該為 23 財年增加 4000 萬美元的年度化，其中只有一小部分在第一季度實際發生。這為我們達到 14% 至 15% 的機會增加了 45、50 個基點。

So bottom line is we feel confident in our 14% to 15% guidance for fiscal year '23. And we think longer term to the 15% operating margin floor, we think that our Q1 results provide the building blocks so everyone can see how we get there, especially when you take a look at the occupancy and SG&A leverage, versus 2019, and that's evidence of our structural change because of our higher e-com mix and our retail optimization strategy.

因此，底線是我們對 23 財年 14% 至 15% 的指引充滿信心。我們認為從長遠來看，到 15% 的營業利潤率下限，我們認為我們的第一季度業績提供了基石，這樣每個人都可以看到我們是如何實現這一目標的，尤其是當你看看與 2019 年相比的入住率和 SG&A 槓桿時，那就是由於我們更高的電子商務組合和我們的零售優化策略，我們的結構變化的證據。

And if I'm allowed to sneak in a follow-up, did you -- can you quantify backlog at all? I think you helped us talk about it last quarter, I think. Can you help frame the year for us?

如果允許我偷偷跟進，你能量化積壓嗎？我想你上個季度幫助我們談論了它，我想。你能幫我們勾勒出這一年嗎？

Yes. In terms of the backlog, the backlog is normalized. It's not necessarily a factor like it's been in '20, '21 or '22. So we -- as we said on our Q4 call, the backlog is pretty much normalized at this point. It's not a factor in terms of our results.

是的。積壓方面，積壓常態化。這不一定是像 20 年、21 年或 22 年那樣的因素。所以我們——正如我們在第四季度電話會議上所說的那樣，積壓在這一點上已經非常正常化了。就我們的結果而言，這不是一個因素。

Your next question will come from the line of Chuck Grom with Gordon Haskett.

您的下一個問題將來自 Chuck Grom 與 Gordon Haskett 的對話。

Clearly, on the SGA side, you're doing a great job controlling what you can control. But the Home category in itself is really rebased much higher than 2019. And I guess I'm just curious what gives you the confidence that the category doesn't continue to mean reverts. So when we get into, say, '24 or maybe even '25,some of these sales issues persist.

顯然，在 SGA 方面，您可以很好地控制您可以控制的內容。但是家庭類別本身確實比 2019 年重新調整了很多。我想我只是好奇是什麼讓你相信該類別不會繼續意味著恢復。因此，當我們進入 24 歲甚至 25 歲時，其中一些銷售問題仍然存在。

Thanks, Chuck. I think the first thing to remember is that the category is very fractured and very large and no one company owns much share. And so companies like ours that are positioned to take share will continue to win. Customers are still spending. They love their homes. When I talked to you last, the housing was down 37% last year, it's now down 22%. It's gotten a little bit better, but we're certainly not counting on that.

謝謝，查克。我認為首先要記住的是，該類別非常分散且非常龐大，沒有一家公司擁有太多份額。因此，像我們這樣有能力分享的公司將繼續獲勝。客戶仍在消費。他們愛自己的家。我上次和你談話時，去年房價下跌了 37%，現在下跌了 22%。它變得更好了一點，但我們當然不會指望這一點。

The reality is that the cycle of how they purchase is in phases. Some people are in their home for -- a lot of our customers, mostly in their home for a year, but a lot of them have been in their home for over 3 years, right? And there's a large group that's been in their home for more than 10 years. And these are all opportunities for remodel, update, decorate. You don't have to just redo the whole house to come shop with us because we sell so many other things. We sell pillows. We have frames for those grad gifts that you're all looking for. We are showing you beautiful tablescapes. The gift giving, the babies, all those life stages are embedded and they're real pieces of our business.

事實上，他們的購買週期是分階段進行的。有些人在他們家裡——我們的很多客戶，大部分都在他們家里呆了一年，但他們中的很多人已經在他們家里呆了 3 年多了，對吧？並且有一大群人已經在他們家里呆了 10 多年。這些都是改造、更新、裝飾的機會。您不必為了和我們一起購物而只重新裝修整個房子，因為我們賣很多其他東西。我們賣枕頭。我們為您尋找的畢業禮物準備了相框。我們正在向您展示美麗的桌面景觀。送禮、嬰兒，所有這些生命階段都是內在的，它們是我們業務的真實組成部分。

And so it's not just about that movement to buy a new house and buy everything in it. And people love their homes. There's no question that it's on everyone's mind still. And I think they're just very cautious right now to buy the big ticket. And they are still shopping, as I said to you before, we can see it in so many of our categories where they're coming to us every -- we have newness, whether it's LoveShackFancy or some of the new bedding products in Pottery Barn. When we have that high fashion newness that we're so good at, that's exclusive, they definitely purchase and they're purchasing at regular price.

因此，這不僅僅是關於購買新房子併購買其中所有東西的運動。人們熱愛自己的家園。毫無疑問，它仍然在每個人的腦海中。而且我認為他們現在只是非常謹慎地購買大票。而且他們仍在購物，正如我之前對你說的，我們可以在我們的許多類別中看到它，他們每次都來找我們——我們有新鮮事物，無論是 LoveShackFancy 還是 Pottery Barn 的一些新床上用品.當我們擁有我們擅長的高級時尚新品時，那是獨家的，他們肯定會購買，而且他們會以正常價格購買。

Okay. Great. That's helpful. Thank, Laura. And then just for Jeff, I mean, clearly, the math on the 2- and the 4-year stacks are correct, and you would be within your guidance. But I guess I'm curious on the demand comp, your comments about the consumer becoming increasingly cautious, if the trend line in that demand comp changed at all as we progressed throughout the past couple of months and into May?

好的。偉大的。這很有幫助。謝謝，勞拉。然後就 Jeff 而言，我的意思是，很明顯，2 年和 4 年堆棧的數學是正確的，你會在你的指導範圍內。但我想我對需求比較很好奇，你對消費者變得越來越謹慎的評論，如果隨著我們在過去幾個月和進入 5 月份的進展，需求比較的趨勢線是否發生了變化？

So our demand trends have remained consistent. They did on the -- 1- and 2-year they did...

所以我們的需求趨勢一直保持一致。他們做了——他們做了 1 年和 2 年……

It's really choppy.

這真的很波濤洶湧。

Yes. But the 1- and 2-year did decelerate across Q1, but the 4-year was remarkably consistent. So when we look at these trends and we extrapolate them forward, both on the demand side and the net side, we feel it supports our guidance that we've given, as I outlined in the call.

是的。但是 1 年期和 2 年期確實在整個第一季度減速，但 4 年期卻非常穩定。因此，當我們審視這些趨勢並將它們向前推斷時，無論是在需求方面還是在淨方面，我們都認為它支持我們給出的指導，正如我在電話中概述的那樣。

Your next question will come from the line of Anthony Chukumba with Loop Capital Markets.

您的下一個問題將來自 Loop Capital Markets 的 Anthony Chukumba。

Just had a question about GreenRow. Obviously, it's super, super early, just launched the brand next week, but I would love to just get some perspectives in terms of the way you think about positioning GreenRow. It looks like it's a lot of furniture. It looks like it's an heirloom, like more traditional furniture. But how are you sort of thinking about that? And obviously, once again, super early, but dream the dream in terms of the long-term opportunity there.

剛剛有一個關於 GreenRow 的問題。顯然，現在太早了，下周剛剛推出該品牌，但我很想就您對 GreenRow 定位的思考方式了解一些觀點。看起來家具很多。它看起來像是一件傳家寶，就像更傳統的家具。但是你是怎麼想的呢？顯然，再一次，超級早，但就那裡的長期機會而言，夢想夢想。

Thank you for bringing that up, Anthony. We're very excited and proud of what we've done on GreenRow. We are very focused on sustainability across all of our brands, but we thought it was time that we really approached a brand from the beginning with that as a -- as one of the primary things that we're doing. And so we are able to use all that we know to build an assortment that is both completely sustainable, but also really beautiful and differentiated in the market.

謝謝你提出來，安東尼。我們對我們在 GreenRow 上所做的一切感到非常興奮和自豪。我們非常關注我們所有品牌的可持續性，但我們認為是時候從一開始就真正接觸一個品牌——作為我們正在做的主要事情之一。因此，我們能夠利用我們所知道的一切來構建一個既完全可持續，又非常漂亮且在市場上與眾不同的產品組合。

Many times, when you think about sustainable products, you think about neutrals, very basic products. You don't think about fashion. And GreenRow has both. It's colorful, it's optimistic, it's, I would say, vintage-inspired, European-inspired, and we are giving a range of products from table linens to furniture, very carefully selected, built-to-last. It should be the last table that you buy. It's -- the product is high quality, durable and beautiful.

很多時候，當您想到可持續產品時，您會想到中性的、非常基本的產品。你不考慮時尚。 GreenRow 兩者兼備。它色彩繽紛，樂觀，我想說，它是複古風格，歐洲風格，我們提供從桌佈到家具的一系列產品，經過精心挑選，經久耐用。它應該是您購買的最後一張桌子。它是——產品質量上乘、耐用且美觀。

And I'd say in terms of white space, the aesthetic is definitely more feminine than our other brands. And just like there are so many different types of music and new songs that come out as best sellers, we knew that there was -- there's always opportunities for new brands, and we've been good at starting them. Most of our business today we're internally started brands. And so while it's going to be very small, it is significant for a while, we're optimistic and it's an example of innovation at Williams-Sonoma, Inc.

我想說的是，就白色空間而言，審美絕對比我們的其他品牌更女性化。就像有這麼多不同類型的音樂和新歌成為暢銷書一樣，我們知道——新品牌總是有機會，而且我們一直很擅長啟動它們。我們今天的大部分業務都是內部創立的品牌。因此，雖然它會非常小，但在一段時間內意義重大，我們很樂觀，這是 Williams-Sonoma, Inc. 創新的一個例子。

Got it. That's helpful. And then a quick related follow-up. So you've talked in the past about the fact that as access to easy money has dried up a lot of these smaller DTC brands, these ankle biters, I believe is the term that you've used, you're seeing more like inbounds where they're trying to sell to you or maybe they're going away. I guess any change that you've seen over the last few months in terms of what's going on with the ankle biters?

知道了。這很有幫助。然後是快速相關的跟進。所以你過去曾談到這樣一個事實，即隨著輕鬆賺錢的途徑已經枯竭了很多較小的 DTC 品牌，這些腳踝咬傷者，我相信你使用過的術語，你看到的更像是入站他們想賣給你的地方，或者他們可能會離開。我想你在過去幾個月中看到的腳踝咬傷發生了什麼變化？

Yes. I mean they're certainly having a tougher time. And we're seeing it in all the ways you mentioned, whether it's people looking for an exit or site-wide promotions. We can see that some of them are buying less ad terms than they were previously, and not enough innovation. I mean this innovation piece is really key to the future. And so they may have had a product or an idea that was very good a couple of years ago, but they can't keep up. They're falling behind. So it's a real opportunity for us. None of them -- put them all together and it's a part of the market and I think some of them will make it, but most of them will not.

是的。我的意思是他們肯定有更艱難的時期。我們在您提到的所有方面都看到了它，無論是人們在尋找退出還是網站範圍內的促銷活動。我們可以看到，他們中的一些人購買的廣告條款比以前少了，而且創新也不夠。我的意思是這個創新作品真的是未來的關鍵。因此，他們可能在幾年前擁有非常好的產品或想法，但他們跟不上了。他們落後了。所以這對我們來說是一個真正的機會。他們都沒有——把它們放在一起，這是市場的一部分，我認為他們中的一些人會成功，但大多數人不會。

Yes. I would just jump in and say I think this is a competitive advantage for us in the marketplace that is going to come -- potentially come under some pressure, where our fortress balance sheet will enable us to withstand these pressures that many of these small competitors were not. And so we'll just continue to pick up market share as they run into trouble.

是的。我只想說，我認為這對我們來說是在即將到來的市場上的競爭優勢——可能會承受一些壓力，我們的堡壘資產負債表將使我們能夠承受這些壓力，許多這些小競爭對手不是。因此，當他們遇到麻煩時，我們只是繼續獲得市場份額。

Your next question will come from the line of Oliver Wintermantel with Evercore ISI.

您的下一個問題將來自 Evercore ISI 的 Oliver Wintermantel 系列。

I had a question regarding B2B. I think, Laura, you said it was down 7% in the quarter, but then contract was up mid-double digits. Can you explain the difference there? What drove that up mid-double digits? And then trading must have been down, obviously, a lot worse than the 7%.

我有一個關於 B2B 的問題。我想，勞拉，你說本季度下降了 7%，但後來合同上漲了兩位數。你能解釋一下那裡的區別嗎？是什麼推動了中兩位數的增長？然後交易一定是下降了，很明顯，比 7% 差很多。

Yes. Thank you. This continues to be an area that we're very excited about, and we've seen continued success in driving large project growth including it was our largest quarter history to date for our brand standard and annuity programs. Our contract business has maintained an accelerated growth trajectory, most notably this quarter in hospitality, multi-residential mixed use, along with increased engagement from the commercial sector. Although the trade business has softened over the last few months, we are starting to see signs of volume building back in our designer business, and we are confident in our ability to compete for this business, and we continue to take share while maintaining a very, very strong focus on growing our contract project pipeline, which is really where we want to increase the penetration over the future. Jeff, do you want to add anything to what I...

是的。謝謝。這仍然是一個讓我們非常興奮的領域，我們已經看到在推動大型項目增長方面持續取得成功，包括這是我們品牌標準和年金計劃迄今為止最大的季度歷史。我們的合同業務保持了加速增長的軌跡，本季度最引人注目的是酒店、多住宅混合用途以及商業部門的參與度增加。儘管貿易業務在過去幾個月有所疲軟，但我們開始看到設計師業務量增加的跡象，我們對我們競爭該業務的能力充滿信心，我們將繼續佔據份額，同時保持非常高的份額，非常注重發展我們的合同項目管道，這確實是我們希望在未來增加滲透率的地方。傑夫，你想對我...

Yes. I think it's always helpful to dimensionalize with some of our notable wins in the last quarter. So with Marriott and Starbucks, both names everyone knows, we saw our best quarter ever. They both logged triple-digit growth. In our residential developer business, we continue to expand our portfolio with key industry names, such as [Related], Pulte and Lennar. We completed office projects with Salesforce, [Dan's Corporation], Republic Airways. In the stadium space, we helped Auburn University update their Gameday suites. And we're getting traction in some of our newer industry segments like cruise, where we partnered with Celebrity Cruises to furnish some of the departure lounges and continue to build out our book of business in the space. The key point here is B2B continues to be a winning strategy for us, and we continue to capture market share in this $80 billion fragmented market.

是的。我認為通過我們在上個季度取得的一些顯著勝利來衡量總是有幫助的。因此，對於萬豪和星巴克這兩個眾所周知的名字，我們看到了有史以來最好的季度。他們都取得了三位數的增長。在我們的住宅開發商業務中，我們繼續擴大我們的投資組合，包括 [Related]、Pulte 和 Lennar 等主要行業名稱。我們與 Salesforce、[Dan's Corporation]、Republic Airways 一起完成了辦公項目。在體育場空間，我們幫助奧本大學更新了他們的比賽日套房。我們在一些較新的行業領域越來越受歡迎，比如郵輪，我們與 Celebrity Cruises 合作提供一些出發休息室，並繼續在該領域建立我們的業務簿。這裡的關鍵點是 B2B 仍然是我們的製勝戰略，我們繼續在這個價值 800 億美元的分散市場中奪取市場份額。

Got it. And then just as a follow-up, when I hear your commentary there, the -- on contract, that mid-double digit, it sounds like it should continue to grow nicely, but the trade should recover. So should we -- for the rest of the year, in other words, should we see that negative 7% to improve throughout the year?

知道了。然後作為後續行動，當我聽到你在那裡的評論時，合同中的兩位數，聽起來它應該繼續良好增長，但貿易應該恢復。那麼我們是否應該——換句話說，在今年餘下的時間裡，我們是否應該看到 7% 的負增長在全年有所改善？

We don't guide B2B specifically across the quarters, but we do continue to expect B2B will aid our comps throughout the quarter. And it's all baked in to...

我們不會在整個季度專門指導 B2B，但我們確實繼續期望 B2B 將在整個季度幫助我們的公司。這一切都被烘烤到......

Throughout the [year]. Yes, throughout the year .

貫穿[年]。是的，全年無休。

Yes, thank you. Thank you, Laura. And it's all contemplated in our annual guidance.

是的，謝謝。謝謝你，勞拉。我們的年度指南中都考慮到了這一切。

Your next question will come from the line of Seth Sigman with Barclays.

你的下一個問題將來自 Seth Sigman with Barclays。

I wanted to follow up on the shape of demand. So there was clearly a step down in Q1, maybe even within Q1. But I wanted to confirm, based on an earlier comment that it sounds like you're seeing some stabilization. I don't know if that was late Q1 or a Q2 comment, but maybe you could just clarify that.

我想跟進需求的形態。因此，Q1 顯然出現了下滑，甚至可能在 Q1 內出現了下滑。但我想確認，根據之前的評論，聽起來你看到了一些穩定。我不知道那是第一季度末還是第二季度的評論，但也許你可以澄清一下。

And then the second part of the question, it's more about visibility into some of the specific operational drivers that you have that I think you've embedded in the sales outlook for the year. Maybe you could just elaborate on where you are with respect to some of those, thinking about rebalancing inventory, improving delivery accuracy, maybe reducing some of the concessions. I think you've built some of those into the sales outlook. So where are we with those today? And how important are those for the outlook?

然後是問題的第二部分，它更多地是關於你擁有的一些特定運營驅動因素的可見性，我認為你已經嵌入了今年的銷售前景。也許你可以詳細說明你在其中一些方面的進展，考慮重新平衡庫存、提高交付準確性，或者減少一些讓步。我認為您已經將其中一些納入了銷售前景。那麼我們今天在哪裡呢？這些對前景有多重要？

Sure. It's Laura, and then I'll let Jeff add some more detail. So as I said, we've seen choppiness since Labor Day. So the consistency is the choppiness. And when we look at the balance of the year and we take into consideration our opportunities by brand and the fact that Williams-Sonoma becomes a bigger part of the mix in Q4. And then we run our 2- and 4- years, Jeff, when we get to our guidance range.

當然。我是勞拉，然後我會讓傑夫添加更多細節。所以正如我所說，自勞動節以來我們就看到了波動。所以一致性就是波動。當我們審視今年的餘額時，我們會考慮品牌帶來的機會，以及威廉姆斯-索諾瑪在第四季度成為組合中更重要部分的事實。傑夫，當我們達到我們的指導範圍時，我們會運行 2 年和 4 年。

But there's a lot of other things other than just sales that are extremely important. And there's a lot of opportunities even in the short term. And the biggest one of all is customer service. The pandemic was a time where supply chain was very disrupted. Products were late -- very late. We had to repeatedly tell customers that they weren't getting things and that cost us a lot of money and a lot of credibility with our customers.

但除了銷售之外，還有很多其他事情非常重要。即使在短期內也有很多機會。其中最大的一項是客戶服務。大流行是供應鏈嚴重中斷的時期。產品遲到了——非常遲。我們不得不反復告訴客戶他們沒有得到東西，這讓我們損失了很多錢，也失去了客戶的信譽。

And during this time, we have been working so hard to improve our service levels and return to world-class service, which has always been a key tenet of who we are and why our customers come to us. And I'm pleased to tell you that we are already seeing significant improvements in on-time delivery, which is a key part of customer satisfaction.

在這段時間裡，我們一直在努力提高我們的服務水平並恢復世界一流的服務，這一直是我們是誰以及我們的客戶為什麼來找我們的關鍵原則。我很高興地告訴您，我們已經看到準時交貨有了顯著改善，這是客戶滿意度的關鍵部分。

Customer service is also a profit driver. So Jeff went through some of the areas where we're going to see natural improvement just because we're lapping high cost from last year. But what we haven't quantified is the -- all the costs that are embedded that were wastes, that will improve our operating margin. So while, yes, the top line is subdued, we have opportunity to build for the long term and ensure that we deliver a very profitable business while others really suffer. And over time, you're going to see us be one of the strongest players, I believe, in the industry.

客戶服務也是利潤驅動因素。所以 Jeff 經歷了一些我們將看到自然改進的領域，因為我們從去年開始成本很高。但我們沒有量化的是——所有嵌入的成本都是浪費，這將提高我們的營業利潤率。因此，是的，雖然收入低迷，但我們有機會進行長期建設並確保我們提供非常有利可圖的業務，而其他人則真正受苦。隨著時間的推移，我相信你會看到我們成為業內最強大的參與者之一。

So then -- that's really helpful. So I guess, one follow-up would be just around the sensitivity in the financial model, right? Obviously, top line is under pressure but that's not the only thing that matters, right? And so how much have you built in here? How much can sales potentially flex lower while still achieving the margins and EPS that you laid out here based on some of those drivers?

那麼——這真的很有幫助。所以我想，一項後續行動將圍繞財務模型的敏感性展開，對吧？顯然，頂線面臨壓力，但這並不是唯一重要的事情，對吧？那麼你在這裡建造了多少？在仍然實現您根據其中一些驅動因素在此處列出的利潤率和每股收益的同時，銷售額可能會降低多少？

I think Jeff has already answered that question. I think you saw us -- I know you saw us deliver a higher operating margin than expected in Q1. And with, I think, lower sales than most people's model showed, and that is because we've always been very disciplined. We are aggressive about finding efficiencies and cutting costs but also our platform and our omni positioning allows us to flex more than others. We've been doing this for a while. We went through the downturn and we came out stronger. And so I would tell you that our track record versus me just saying I'm confident, our track record shows you that we are able to produce even if the top line is more subdued.

我認為 Jeff 已經回答了這個問題。我想你看到了我們——我知道你看到我們在第一季度提供了比預期更高的營業利潤率。而且，我認為，銷售額低於大多數人的模型，這是因為我們一直非常自律。我們積極尋求效率和削減成本，而且我們的平台和我們的全方位定位使我們能夠比其他人更加靈活。我們這樣做已經有一段時間了。我們經歷了低迷，變得更加強大。所以我會告訴你，我們的業績記錄與我只是說我有信心，我們的業績記錄表明，即使頂線更加低迷，我們也能夠生產。

Your next question will come from the line of Anna Andreeva with Needham.

你的下一個問題將來自 Anna Andreeva 與 Needham 的對話。

Great. Two quick ones from us, keeping in mind that it's volatile out there, like you've said. Just curious on what are you seeing with demand so far in the second quarter? I think you mentioned the Memorial Day promos are being planned similar to last year's levels. Can you talk if you're still seeing the consumer come out for events? And then secondly, on the $40 million in cost reduction I think you said some of it affected the P&L already in the first quarter. Just any color on how we should think about those savings as we go through the year.

偉大的。兩個來自我們的快速消息，請記住，就像你說的那樣，那裡是不穩定的。只是好奇您對第二季度到目前為止的需求有何看法？我想你提到陣亡將士紀念日促銷活動的計劃類似於去年的水平。如果您仍然看到消費者出來參加活動，您能談談嗎？其次，關於 4000 萬美元的成本削減，我想你說過其中一些已經影響了第一季度的損益表。關於我們在這一年中應該如何考慮這些節省的任何顏色。

Yes. Thank you. We're really early in the quarter, couple of weeks in here versus when we talked about after Q4, we were more -- we're further along in the quarter. So I wouldn't read anything into -- I wouldn't make any comment about at least a couple of weeks into the quarter. I did mention we're seeing softer sales in furniture and outdoor seems to be following a later curve than it did obviously in the pandemic where people bought it earlier. We are seeing strength in our textile decorating business, gift giving, kitchen business. And so all those were covered in my prepared remarks.

是的。謝謝。我們真的在本季度的早期，在這裡幾週與我們在第四季度之後談論的時候相比，我們更多 - 我們在本季度走得更遠。所以我不會讀任何東西——我不會對本季度的至少幾週發表任何評論。我確實提到過，我們看到家具和戶外用品的銷售疲軟，其曲線似乎比人們較早購買的大流行病中明顯要晚。我們在紡織品裝飾業務、禮品贈送、廚房業務方面看到了實力。因此，所有這些都包含在我準備好的發言中。

And when we think about the back half of the year, we're going to continue to build on those strengths, both in marketing, but also as we think about West Elm, the opportunity to add more assortment in gift giving and also in entertaining for the more modern customer, you will see us do that this fall and holiday season with some more newness in those categories, which I think was a really good strategy to do that because we're seeing that that's where the strength is in the business.

當我們考慮下半年時，我們將繼續鞏固這些優勢，不僅在營銷方面，而且在我們考慮 West Elm 時，有機會在送禮和娛樂方面增加更多種類對於更現代的客戶，您會看到我們在今年秋季和假日季節這樣做，並在這些類別中推出更多新品，我認為這是一個非常好的策略，因為我們看到這是業務的優勢所在.

And Anna, in respect to your question on the $40 million in savings, our cost-cutting measures happened in phases across the quarter, both domestically and internationally. And because of that timing, only a very small portion of the $40 million actually booked into Q1. So the majority of that savings will be recognized over the next 3 quarters. So that is factored into our guidance, but it gives us additional confidence in the op margin guidance range we gave of 14% to 15% for 2023.

安娜，關於你關於節省 4000 萬美元的問題，我們的成本削減措施在整個季度在國內和國際上分階段實施。由於那個時間點，實際上只有很小一部分計入第一季度的 4000 萬美元。因此，大部分節省將在接下來的 3 個季度內得到確認。因此，這已納入我們的指導中，但它讓我們對我們給出的 2023 年 14% 至 15% 的運營利潤率指導範圍更有信心。

At this time, I will hand the call back over to management for closing remarks.

屆時，我會將電話轉回給管理層作結束語。

Well, thank you all for joining us. I really appreciate all the great questions, and I wish you all the best over the summer. Looking forward to talking to you soon.

好吧，謝謝大家加入我們。我真的很感謝所有重要的問題，祝你在這個夏天一切順利。期待盡快與您交談。

That will conclude today's meeting. Thank you all for joining. You may now disconnect.

今天的會議到此結束。謝謝大家的加入。您現在可以斷開連接。