Williams-Sonoma Inc (WSM) 2023 Q2 法說會逐字稿

Welcome to the Williams-Sonoma, Inc. Second Quarter 2023 Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Jeremy Brooks, Chief Accounting Officer and Head of Investor Relations. Please go ahead.

歡迎參加 Williams-Sonoma, Inc. 2023 年第二季度收益電話會議。 （操作員指示）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 morning, and thank you for joining our second 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. 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.

早上好，感謝您參加我們的第二季度財報電話會議。我想提醒您，在這次電話會議中，我們將做出有關未來事件和財務業績的前瞻性聲明，包括 23 財年的指導和我們的長期前景。我們相信這些陳述反映了我們的最佳估計。然而，我們不能保證這些陳述一定會實現，實際結果可能與我們的預期有很大差異。該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. Finally, a replay of this call 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我們的 GAAP 結果，而應與我們的 GAAP 結果一起閱讀。非 GAAP 指標與最直接可比的 GAAP 指標的詳細調節結果見我們今天上午早些時候發布的新聞稿的附件 1。這一呼籲還應與我們向 SEC 提交的文件結合起來考慮。最後，我們的投資者關係網站將提供本次電話會議的重播。

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

現在我想將電話轉給我們的總裁兼首席執行官勞拉·阿爾伯 (Laura Alber)。

Thank you, Jeremy. Good morning, everyone, and thank you for joining the call. Before we get into the details of the quarter, I'd like to take a moment to thank the incredible team at Williams-Sonoma, Inc. Without their outstanding work, creativity and relentless focus, none of the results we are reporting today would be possible. We are pleased to deliver another quarter of strong earnings. We significantly exceeded profitability estimates with an operating margin of 14.6% with earnings per share of $3.12, well above our pre-pandemic results. Our sales ran negative 11.9% in Q2, but our 2-year comp was essentially flat, and our 4-year comp to 2019 was positive 39.7%.

謝謝你，傑里米。大家早上好，感謝您加入通話。在我們詳細介紹本季度的細節之前，我想花點時間感謝Williams-Sonoma, Inc. 令人難以置信的團隊。如果沒有他們出色的工作、創造力和不懈的專注，我們今天報告的任何結果都不會是這樣的。可能的。我們很高興再次實現強勁的季度盈利。我們的營業利潤率為 14.6%，每股收益為 3.12 美元，大大超出了盈利預期，遠高於大流行前的業績。第二季度我們的銷售額為負 11.9%，但我們的 2 年比較基本持平，而截至 2019 年的 4 年比較為正 39.7%。

We achieved these results against an increasingly promotional environment and softening industry metrics by leveraging our market advantages and focusing on regular price selling, driving improved customer service and controlling costs. We're in a period where consumers are buying fewer large-ticket furniture pieces than they did a year ago as they shift their spending. However, our advantage is our portfolio of brands serving a range of categories, aesthetics and life stages. Only approximately half of our business is furniture, and we are seeing relative strength in kitchen purchases, fashion tech sales, dorm, baby and seasonal holidays. And our in-house design capabilities and vertically integrated sourcing organization allows us to design and develop quality products at a great value.

我們在日益促銷的環境和疲軟的行業指標下取得了這些成果，通過利用我們的市場優勢並專注於正常價格銷售，推動改善客戶服務並控製成本。我們正處於這樣一個時期，隨著消費者支出的轉移，他們購買的大件家具數量比一年前要少。然而，我們的優勢是我們的品牌組合服務於一系列品類、審美和生命階段。我們的業務中只有大約一半是家具，我們看到廚房採購、時尚科技銷售、宿舍、嬰兒和季節性假期的相對強勁。我們的內部設計能力和垂直整合的採購組織使我們能夠設計和開發具有巨大價值的優質產品。

But we are not only innovators, we are also operators. Core to our business model is a digital-first but not digital-only channel strategy that supports our world-class shopping experience. We are pleased that due to our focus and investments in operations, we have made meaningful progress on our customer service. We've seen improvements in our key metrics, including on-time delivery and damages, both of which improve customer satisfaction and reduce costs.

但我們不僅是創新者，我們也是運營者。我們商業模式的核心是數字優先但不僅僅是數字的渠道策略，以支持我們世界一流的購物體驗。我們很高興，由於我們對運營的關注和投資，我們在客戶服務方面取得了有意義的進展。我們看到了關鍵指標的改進，包括準時交貨和損壞情況，這兩者都提高了客戶滿意度並降低了成本。

On the digital front, we continue to control ad costs tightly, optimizing spend with a focus on the most productive channels, leaving some flexibility to test into formats that tap into new audiences. And as one of the largest e-commerce players, we continue to enhance our proprietary e-commerce tech stack. We believe we will lead the way in retail, and our use of AI and our tech capabilities, including our homegrown recommendations engine used for enabling relevant product selection on our website and our AI-powered room design tool with intelligent design guidance.

在數字方面，我們繼續嚴格控制廣告成本，優化支出，重點關注最高效的渠道，並保留一定的靈活性來測試吸引新受眾的格式。作為最大的電子商務參與者之一，我們不斷增強我們專有的電子商務技術堆棧。我們相信，我們將在零售、人工智能的使用和技術能力方面處於領先地位，包括用於在我們的網站上選擇相關產品的自主推薦引擎，以及具有智能設計指導的人工智能驅動的房間設計工具。

We also operate a best-in-class retail business with our stores not only serving as billboards for our brands but driving profit and customer service. I truly believe we have the best team in retail. And our stores are beautifully designed and curated with aspirational assortments, and our continued retail optimization efforts have refocused our fleet on the most profitable, inspiring and strategic locations. Additionally, we continue to enhance our omni initiatives to better serve our customers and drive profitability. We also tightly managed all the other expenses, including employment costs. In both Q1 and Q2, we made tough decisions to rightsize our organization to control costs and drive efficiency. And we closely managed our inventory levels to align with our demand trends while improving our in-stocks. Total inventory was down 15.7% versus last year.

我們還經營一流的零售業務，我們的商店不僅充當我們品牌的廣告牌，而且還推動利潤和客戶服務。我堅信我們擁有零售業最好的團隊。我們的商店設計精美，品種齊全，我們持續的零售優化工作使我們的車隊重新集中在最有利可圖、最鼓舞人心和最具戰略意義的地點。此外，我們繼續加強全方位計劃，以更好地服務客戶並提高盈利能力。我們還嚴格管理所有其他費用，包括僱傭成本。在第一季度和第二季度，我們做出了艱難的決定，調整我們的組織規模，以控製成本並提高效率。我們密切管理庫存水平，以適應我們的需求趨勢，同時改善庫存。總庫存比去年下降 15.7%。

Now I'd like to tell you about our progress and our sustainability efforts. In Q2, we released our 2022 Impact Report, highlighting our commitment to our values and our progress toward achieving our science-based targets and other sustainability goals. Notable in our report, we significantly scaled renewable energy. And in our value chain, we launched a vendor engagement and preferred material strategy to reduce emissions. We also detailed progress in our worker well-being goals. Our commitment to fair trade premiums, Nest-certified Ethically Handcrafted products and other programs that impact the lives of almost 100,000 individuals globally. We are committed to action and continuous improvement, and we are making meaningful progress on the path we've laid out. Also, we launched a new home furnishings brand, GreenRow, which I'll discuss later, which uses sustainable materials and manufacturing processes and targets an emerging demographic that prioritizes sustainability in the brands they support.

現在我想向您介紹我們的進展和可持續發展努力。第二季度，我們發布了 2022 年影響報告，強調了我們對價值觀的承諾以及我們在實現基於科學的目標和其他可持續發展目標方面取得的進展。在我們的報告中值得注意的是，我們大幅擴展了可再生能源的規模。在我們的價值鏈中，我們啟動了供應商參與和首選材料策略來減少排放。我們還詳細介紹了員工福利目標的進展情況。我們致力於公平貿易溢價、Nest 認證的道德手工產品以及影響全球近 100,000 人生活的其他計劃。我們致力於採取行動並持續改進，並且我們正在我們所製定的道路上取得有意義的進展。此外，我們還推出了一個新的家居品牌 GreenRow，我將在稍後討論該品牌，該品牌使用可持續材料和製造工藝，面向新興人群，他們優先考慮其支持的品牌的可持續性。

Now I'd like to spend a few minutes talking about our brands. Pottery Barn ran a negative 10.6% comp in Q2 but a 10.9% positive on a 2-year and a 48.7% positive on a 4-year basis. Although furniture demand has decelerated, we are seeing relative strength and easy updates in decorating, frames, pillows, throws and table linens. In late July, we launched our new and seasonal fall assortments, and we're getting a strong response to our proprietary textiles, including duvets, quilts, pillows and rugs. Halloween decorating is off to a strong start, which is a good indicator for the upcoming holiday season. In furniture, we're seeing strength in our new lighter finishes, velvets and cozy fabrications. And while it is early, the new fall assortment is up versus new fall last year.

現在我想花幾分鐘談談我們的品牌。 Pottery Barn 第二季度的綜合增長率為 10.6%，但 2 年增長率為 10.9%，4 年增長率為 48.7%。儘管家具需求有所放緩，但我們看到裝飾、框架、枕頭、休閒毯和桌布的相對強勁且易於更新。七月下旬，我們推出了新的季節性秋季系列，我們的專有紡織品（包括羽絨被、被子、枕頭和地毯）引起了強烈反響。萬聖節裝飾已經有了一個良好的開端，這是即將到來的節日的一個很好的指標。在家具方面，我們看到了新的淺色飾面、天鵝絨和舒適面料的優勢。雖然現在還為時過早，但秋季新品品種比去年秋季新品有所增加。

Also in Q2, we successfully opened our newly relocated store on Post Road in Westport, Connecticut with much success. Repositioned stores like this are proving to be very productive as they bring to life our broader product assortments and showcase our free design services. Westport is an example of the effectiveness of our company-wide retail optimization strategy, which includes closing smaller and older stores and repositioning it to larger stores in open-air lifestyle centers and destination street locations.

同樣在第二季度，我們在康涅狄格州韋斯特波特的郵政路成功開設了新搬遷的商店，取得了巨大成功。事實證明，像這樣重新定位的商店非常富有成效，因為它們使我們更廣泛的產品種類煥然一新，並展示了我們的免費設計服務。西港是我們全公司零售優化戰略有效性的一個例子，其中包括關閉較小和較舊的商店，並將其重新定位到露天生活方式中心和目的地街道位置的較大商店。

The Pottery Barn Children's business ran a negative 9% comp in Q2 and was negative 3.8% on a 2-year basis and positive 19.1% on a 4-year basis. Across these life-stage brands, we are focused on delivering compelling innovation and elevating the customer experience. One key area in the quarter has been our back-to-school offering. We're proud to expand our market-leading gear to include an accessible option and to build upon our best-selling desks with accessible study solutions. Another highlight is our dorm assortment, which addresses the distinct needs of college-bound students with XL twin bedding, no nails decor and storage. The dorm opportunity is significant, given the underserved market, and we expect to continue to pick up market share and drive year-over-year double-digit growth in this category. Customers can shop online and ship product to any of our company stores that are closest to their college campus.

Pottery Barn Children's 業務在第二季度的綜合增長率為負 9%，按 2 年計算為負值 3.8%，按 4 年計算為正值 19.1%。在這些生命階段的品牌中，我們專注於提供引人注目的創新並提升客戶體驗。本季度的一個關鍵領域是我們的返校活動。我們很自豪能夠擴展我們市場領先的設備，包括無障礙選項，並在我們最暢銷的書桌的基礎上提供無障礙學習解決方案。另一個亮點是我們的宿舍品種，它滿足了即將上大學的學生的獨特需求，配有 XL 雙人床上用品、無釘裝飾和儲物空間。鑑於市場服務不足，宿舍機會非常重要，我們預計將繼續擴大市場份額並推動該類別的同比兩位數增長。客戶可以在線購物並將產品運送到我們距離大學校園最近的任何一家公司商店。

Included in our dorm offer, we are excited to showcase our partnership with LoveShackFancy, which has gained even more traction with the dorm launch. We also continue to focus on baby, the entry point to our Pottery Barn Kids brand. Here, we are winning with our GREENGUARD Gold nursery seating, our curated selection of baby gear and the expansion of furniture and gifts in our stores.

我們很高興向大家展示我們與 LoveShackFancy 的合作夥伴關係，其中包括我們的宿舍優惠，該合作夥伴關係隨著宿舍的推出而獲得了更多關注。我們還繼續關注嬰兒，這是我們 Pottery Barn Kids 品牌的切入點。在這裡，我們憑藉 GREENGUARD Gold 嬰兒座椅、精心挑選的嬰兒用品以及店內家具和禮品的擴展而獲勝。

Now let's talk about West Elm. West Elm is a brand that has been most impacted by the customer pullback in furniture. In Q2, West Elm ran a negative 20.8% and was negative 14.7% on a 2-year basis but ran a 43.4% positive on a 4-year basis. West Elm is our brand with the highest percentage of its assortment in furniture, the most underdeveloped in other categories and a customer base that has been most impacted by the environment. Despite current challenging dynamics, the brand made progress on 2 key areas that we believe will drive improvement in their business in the near term: first newness, we are doubling our newness penetration in the back half, fueled by our fall and holiday launches. We are encouraged by the strong performance of the new fall product launch so far, which marks a real evolution in the brand's modern design voice. And while it is a small assortment, it is exceeding the performance of last year's fall newness.

現在我們來談談西榆樹。 West Elm 是受家具消費減少影響最嚴重的品牌。第二季度，West Elm 的增長率為負 20.8%，按 2 年計算為負值 14.7%，但按 4 年計算為正值 43.4%。 West Elm 是我們家具品種中佔比最高的品牌，也是其他品類中最不發達的品牌，也是受環境影響最大的客戶群。儘管當前充滿挑戰，但該品牌在兩個關鍵領域取得了進展，我們相信這將在短期內推動其業務的改善：首先，在秋季和假期推出的推動下，我們將下半年的新品滲透率提高了一倍。迄今為止，秋季新品發布的強勁表現令我們深受鼓舞，這標誌著該品牌現代設計風格的真正演變。雖然品種不多，但其表現卻超過了去年秋季新品。

And second, given the success of recent collaborations with Colin King Studio and RHODE and the response to fall product, we see sizable opportunity in West Elm as it expands into textiles, decorative accessories, entertainment and seasonal offerings. These 2 key focus areas underpin the opportunity to improve customer count and omnichannel performance in the brand. And we continue to be very optimistic about the long-term growth trajectory of West Elm with its industry-leading design and value.

其次，考慮到最近與 Colin King Studio 和 RHODE 合作的成功以及對秋季產品的反應，我們看到 West Elm 擁有巨大的機會，因為它擴展到紡織品、裝飾配件、娛樂和季節性產品。這兩個關鍵重點領域為提高品牌的客戶數量和全渠道績效奠定了基礎。我們繼續對 West Elm 以其行業領先的設計和價值的長期增長軌跡非常樂觀。

The Williams-Sonoma brand ran a negative 0.7% comp in Q2. On a 2-year basis, the brand was essentially flat and positive 35.7% on a 4-year basis. The quarter was driven by our kitchen business, which ran positive comps offset by the home business. Throughout Q2, high-end electrics, particularly in coffee and espresso continued to lead the way in growth with successful new product launches. Customers also responded well to categories like storage and organization with our exclusive Hold Everything collection. And for the balance of the year, we have a strong pipeline of exciting exclusive product launches and strong collaboration. And based on early reads on Halloween and Autumn, we expect the holiday entertaining and dining at home businesses will drive strong results for the brand.

Williams-Sonoma 品牌第二季度的淨利潤為負 0.7%。以 2 年為基礎，該品牌基本持平，以 4 年為基礎，增長了 35.7%。該季度是由我們的廚房業務推動的，該業務的積極業績被家庭業務所抵消。在整個第二季度，高端電子產品（尤其是咖啡和濃縮咖啡）憑藉成功的新產品發布繼續引領增長。客戶對我們獨家的 Hold Everything 系列的存儲和整理等類別也反應良好。在今年剩下的時間裡，我們擁有一系列令人興奮的獨家產品發布和強有力的合作。根據萬聖節和秋季的早期數據，我們預計節日娛樂和家庭用餐業務將為該品牌帶來強勁業績。

Now I'd like to update you on our other key initiatives. Business-to-Business ran down 5% in Q2. We continue to see strength in our contract business, which ran positive 23% in the quarter, sequentially improving from Q1. We won several proposals across industry segments, including with Sony in the entertainment space, the San Antonio Spurs Training Facility and multiple properties with the Montage, the Four Seasons, Westin, Hilton and Hyatt. The trade business has been more impacted by the slowed housing market. However, we see recent improvement in our trends, and we remain confident on this piece of the B2B business long term.

現在我想向您介紹我們其他重要舉措的最新情況。第二季度 B2B 業務下降 5%。我們繼續看到合同業務的強勁勢頭，該業務在本季度增長了 23%，較第一季度有所改善。我們贏得了多個行業領域的提案，包括娛樂領域的索尼、聖安東尼奧馬刺隊訓練設施以及蒙太奇酒店、四季酒店、威斯汀酒店、希爾頓酒店和凱悅酒店的多個酒店。貿易業務受到房地產市場放緩的影響更大。然而，我們看到最近趨勢有所改善，並且我們對 B2B 業務的長期發展仍然充滿信心。

Now I'd like to talk about our global business. Our standout performer this quarter is our Canadian business. We continue to see strength from our recently replatformed e-commerce website, and we are excited with the launch of our wedding registry service in August in Canada. The Mexico market continues to show strength due to strong execution of design services and an improved in-stock position. India also remains a key growth market in our global business with strong year-over-year performance and the opening of 3 new stores next month, including the first Pottery Barn Kids store.

現在我想談談我們的全球業務。本季度表現出色的是我們的加拿大業務。我們繼續看到我們最近重組的電子商務網站的實力，我們對八月在加拿大推出婚禮登記服務感到興奮。由於設計服務的強勁執行和庫存狀況的改善，墨西哥市場繼續表現強勁。印度仍然是我們全球業務的一個關鍵增長市場，同比表現強勁，下個月將開設 3 家新店，其中包括第一家 Pottery Barn Kids 店。

Lastly, I'd like to update you on our emerging brands. At Rejuvenation, we continue to see success from the replatforming of the website with improved sales, conversion and customer experience. The brand is seeing outperformance in its home project category and strength in newly entered growth categories. At Mark and Graham, our high-quality gift and personalization brand, the business drove a high single-digit comp in Q2. And at GreenRow, we are pleased with the initial reaction to the new brands and the assortment. And while it's early and the volume is small, we are ahead of plan and remain optimistic about the potential of this brand and its aesthetics. These successful and exciting emerging brands are a testament to our ability to develop new businesses that expand our portfolio of brands and address white space in our product offerings, all with minimal investment, low cost of entry and leveraging our knowledge and infrastructure.

最後，我想向您介紹我們新興品牌的最新情況。在 Rejuvenation，我們繼續看到網站平台重塑取得成功，銷售、轉化和客戶體驗得到改善。該品牌在其家居項目類別中表現出色，並在新進入的增長類別中表現強勁。在我們的高品質禮品和個性化品牌 Mark and Graham，該業務在第二季度實現了高個位數的業績增長。在 GreenRow，我們對新品牌和產品系列的初步反應感到滿意。雖然現在還為時尚早，而且產量也很小，但我們比計劃提前了，並對這個品牌的潛力及其美學保持樂觀。這些成功且令人興奮的新興品牌證明了我們開發新業務的能力，這些新業務擴大了我們的品牌組合併解決了我們產品供應中的空白，所有這些都以最少的投資、較低的進入成本並利用我們的知識和基礎設施。

In summary, we recognize there's been a pullback in spending on high-ticket discretionary goods with relative strength in certain other categories. Despite this top line pressure, the proven strength of our operating model produced strong earnings this quarter, driven by our focus on service, cost control and regular price selling. As we put this all together, we have changed our outlook for the year. We now expect full year revenues to come in at a range of down 5% to down 10%, and we are raising our outlook on operating margin to a range of 15% to 16%. It is important to note that the reduction in our revenues outlook is offset by our raised operating margin outlook. On balance, we believe that running our business with tighter inventory, stronger merchandising and design curation with fewer promotions will continue to drive customer satisfaction and long-term growth. Thank you, and now I will turn the call over to Jeff Howie.

總而言之，我們認識到高價非必需品的支出有所回落，但在某些其他類別中相對強勢。儘管存在這種收入壓力，但在我們對服務、成本控制和正常價格銷售的關注的推動下，我們的運營模式經過驗證的優勢在本季度產生了強勁的收益。當我們把所有這些放在一起時，我們改變了對今年的展望。我們現在預計全年收入將下降 5% 至 10%，並將營業利潤率預期上調至 15% 至 16%。值得注意的是，我們收入預期的下降被我們上調的營業利潤率預期所抵消。總的來說，我們相信，通過減少庫存、加強銷售和設計策劃以及減少促銷活動來經營我們的業務，將繼續提高客戶滿意度和長期增長。謝謝您，現在我將把電話轉給傑夫·豪伊。

Thank you, Laura, and good morning, everyone. As Laura said, we're proud that once again, we've delivered a strong quarter of earnings. Our Q2 results reflect the themes we've been communicating over the past several quarters: first, our steadfast commitment to maintain price integrity and not run site-wide promotions, even if it means forgoing some revenues in the short term; second, our first half supply chain cost headwinds that will become second half tailwinds; third, our ability to control SG&A costs and manage inventory levels; and finally, how we've structurally changed our operating model, driven by our higher e-commerce mix and our retail optimization strategy. Our earnings this quarter exceeded expectations despite softer top line revenues. This illustrates the profitability of our platform and supports our long-term 15% operating margin floor.

謝謝勞拉，大家早上好。正如勞拉所說，我們再次實現了強勁的季度盈利，對此我們感到非常自豪。我們第二季度的業績反映了我們過去幾個季度一直在傳達的主題：首先，我們堅定地致力於保持價格完整性，不進行全站促銷，即使這意味著在短期內放棄一些收入；其次，我們上半年的供應鏈成本逆風將成為下半年的順風；第三，我們控制SG&A成本和管理庫存水平的能力；最後，在我們更高的電子商務組合和零售優化策略的推動下，我們如何從結構上改變我們的運營模式。儘管營收疲軟，但我們本季度的收益超出了預期。這說明了我們平台的盈利能力，並支持我們 15% 的長期運營利潤率下限。

Now let's dive into our Q2 results, followed by an update on our fiscal year guidance. As I did last quarter, in addition to year-over-year results, I'll reference 2019 as it's helpful to compare our performance with pre-pandemic levels. Net revenues came in at $1.863 billion. While below our expectations, our revenues reflect the larger home furnishings backdrop and our commitment to maintain price integrity as the industry became more promotional. Our revenue growth in Q2 came in at negative 11.9% comp. Our 2-year stack was essentially flat, and our 4-year stack against 2019 grew 39.7%. Our Q2 demand at negative 11.4% was materially in line with our revenue comps, reflecting a normalized spread between demand and net comps as I mentioned last quarter. On a 2-year stack, our demand was negative 8.1%, and on a 4-year stack, our demand was a positive 37.4%. From a cadence perspective, our demand trends continued to be inconsistent and choppy and decelerated from Q1, driven by a pullback in consumer spending on high-ticket discretionary.

現在讓我們深入了解第二季度的業績，然後更新我們的財年指導。正如我上季度所做的那樣，除了同比結果之外，我還將參考 2019 年，因為這有助於將我們的表現與大流行前的水平進行比較。淨收入為 18.63 億美元。雖然低於我們的預期，但我們的收入反映了更大的家居裝飾背景以及我們在行業促銷力度加大時保持價格完整性的承諾。我們第二季度的收入同比增長為負 11.9%。我們的 2 年籌碼基本持平，而 4 年籌碼較 2019 年增長了 39.7%。我們第二季度的需求為負 11.4%，與我們的收入比較基本一致，反映了需求與淨比較之間的正常化差距，正如我上季度提到的那樣。在 2 年堆棧中，我們的需求為負 8.1%，在 4 年堆棧中，我們的需求為正 37.4%。從節奏的角度來看，由於高價非必需品消費者支出的回落，我們的需求趨勢與第一季度相比繼續不一致、波動和減速。

Moving down the income statement. Gross margin at 40.7% was in line with our expectations. While 280 basis points below last year, our gross margin sequentially improved over Q1 by 210 basis points. Merchandise margins decreased year-over-year as the residual amount of the capitalized costs from higher product costs, ocean freight, detention and demerge sitting on our balance sheet flowed into our income statement. Excluding these atypical capitalized costs, our merchandise margins were in line with last year. Selling margin also continued to be impacted by higher outbound customer shipping costs although to a lesser extent than prior quarters. We incurred these higher costs to best serve our customers by shipping from out-to-market distribution centers and, in some cases, intentionally shipping multiple times for multiunit orders, which typically would have been fulfilled in a single shipment.

將損益表向下移動。 40.7%的毛利率符合我們的預期。雖然比去年低 280 個基點，但我們的毛利率比第一季度提高了 210 個基點。商品利潤率同比下降，因為資產負債表上較高的產品成本、海運費、滯留和分拆帶來的資本化成本的剩餘金額流入了我們的損益表。排除這些非典型資本化成本，我們的商品利潤率與去年持平。銷售利潤率也繼續受到海外客戶運輸成本上升的影響，儘管影響程度較前幾個季度有所減輕。為了更好地服務客戶，我們從市場外的配送中心發貨，並且在某些情況下，故意多次運輸多件訂單，而這些訂單通常會在單次發貨中完成，因此我們產生了更高的成本。

While we still have room to elevate our customer experience, we made substantial progress in Q2 with our customer service. I'd like to congratulate and thank our supply chain organization for elevating our service experience. Altogether, our selling margins were 90 basis points lower than last year. Driven by these short-term supply chain costs and inefficiencies we've been discussing in the past several quarters. As these costs are now fully amortized, Q2 will be the last quarter we report on these headwinds. In fact, we anticipate they will become tailwinds over the next few quarters.

雖然我們仍有提升客戶體驗的空間，但我們在第二季度的客戶服務方面取得了實質性進展。我要祝賀並感謝我們的供應鏈組織提升了我們的服務體驗。總的來說，我們的銷售利潤比去年低了 90 個基點。受這些短期供應鏈成本和低效率的影響，我們在過去幾個季度一直在討論。由於這些成本現已完全攤銷，第二季度將是我們報告這些不利因素的最後一個季度。事實上，我們預計它們將在未來幾個季度成為順風車。

Occupancy costs at 10.9% of net revenues were 190 basis points above last year. Occupancy dollars at $203 million grew 5.3% over last year and were essentially flat quarter over quarter. Our 200 basis points leverage versus 2019's 12.9% occupancy rate demonstrates the impact of our higher e-commerce mix and our retail optimization strategy have had on our gross margin despite Q2 '23 softer top line results. Our Q2 gross margin at 40.7% remained 530 basis points higher than 2019's 35.4%. And that includes absorbing the residual 90 basis points in supply chain-related costs and inefficiencies.

入住成本占淨收入的 10.9%，比去年高出 190 個基點。入住率達 2.03 億美元，較去年增長 5.3%，環比基本持平。我們的 200 個基點槓桿率與 2019 年 12.9% 的入住率相比，表明我們更高的電子商務組合和零售優化策略對我們的毛利率產生了影響，儘管 23 年第 2 季度營收疲軟。我們第二季度的毛利率為 40.7%，比 2019 年的 35.4% 高出 530 個基點。這包括吸收供應鏈相關成本和低效率方面剩餘的 90 個基點。

Our SG&A rate once again reflects our ability to control costs in a challenging environment with Q2 coming in at 26.1%, leveraging 30 basis points to last year. We leveraged both employment and ad costs in the quarter. Employment leverage as we manage variable employment costs in accordance with our top line trends. We also benefited from a reduction-in-force actions in Q1 and Q2 as we continue to look for opportunities to improve efficiency, remove redundancy and streamline operations. Our advertising leverage reflects the competitive advantage of our agile, performance-driven marketing organization. Our in-house capabilities, first-party data and multi-brand platform allow us to drive efficient advertising spend as we see business trends evolve. Overall, SG&A came in 240 basis points lower than 2019's SG&A rate of 28.5%. Once again, these results highlight the impact our higher e-com mix and our retail optimization strategy have on our profitability.

我們的 SG&A 率再次反映了我們在充滿挑戰的環境中控製成本的能力，第二季度為 26.1%，較去年提高了 30 個基點。我們在本季度利用了就業和廣告成本。就業槓桿，因為我們根據收入趨勢管理可變的就業成本。我們還受益於第一季度和第二季度的裁員行動，因為我們繼續尋找提高效率、消除冗餘和簡化運營的機會。我們的廣告槓桿反映了我們敏捷、績效驅動的營銷組織的競爭優勢。我們的內部能力、第一方數據和多品牌平台使我們能夠隨著業務趨勢的發展而推動高效的廣告支出。總體而言，SG&A 比 2019 年 28.5% 的 SG&A 率低 240 個基點。這些結果再次凸顯了我們更高的電子商務組合和零售優化策略對我們盈利能力的影響。

With regard to the bottom line, we are pleased with our results, especially in light of the quarter's challenging industry environment. Q2 operating income came in at $272 million and operating margin at 14.6%. While down 250 basis points below last year, 14.6% stands 770 basis points above 2019's 6.9%. These results reflect the power of our profitability initiatives and underpins our 15% operating margin long-term guidance. Our diluted earnings per share of $3.12 was $0.75 or 19% below last year's record second quarter earnings per share of $3.87 but significantly above 2019's earnings per share of only $0.87. On the balance sheet, we ended the quarter with a cash balance of $514 million with no debt outstanding. This was after investing $43 million in capital expenditures supporting our long-term growth and returning over $69 million to our shareholders through quarterly dividends and share repurchases.

就利潤而言，我們對我們的業績感到滿意，特別是考慮到本季度充滿挑戰的行業環境。第二季度營業收入為 2.72 億美元，營業利潤率為 14.6%。雖然比去年下降 250 個基點，但 14.6% 比 2019 年的 6.9% 高出 770 個基點。這些結果反映了我們盈利計劃的力量，並支撐了我們 15% 營業利潤率的長期指導。我們的稀釋後每股收益為 3.12 美元，比去年第二季度創紀錄的每股收益 3.87 美元低 0.75 美元，即 19%，但明顯高於 2019 年僅 0.87 美元的每股收益。在資產負債表上，本季度末我們的現金餘額為 5.14 億美元，沒有未償債務。這是在投資 4,300 萬美元用於支持我們長期增長的資本支出，並通過季度股息和股票回購向股東返還超過 6,900 萬美元之後。

Merchandise inventories at $1.3 billion were down 15.7% to last year. Three important points I'd like to emphasize here: first, we are well positioned to maintain our price integrity as we proactively managed our inventory levels in line with our demand trends; second, our in-stock levels are robust and near historical highs, and our regional balance and composition has improved considerably; and finally, third, our Q2 ending inventory levels are up only 9.5% versus same period in 2019. And that's with revenue comps of 40% over the same time frame. This highlights how we've improved our efficiency and turnover.

商品庫存為 13 億美元，比去年下降 15.7%。我想在這裡強調三個要點：首先，我們有能力保持價格完整性，因為我們根據需求趨勢主動管理庫存水平；其次，我們的庫存水平強勁，接近歷史高位，區域平衡和構成也有很大改善；最後，第三，我們第二季度期末庫存水平與 2019 年同期相比僅增長了 9.5%。而同期收入對比為 40%。這凸顯了我們如何提高效率和營業額。

Summing up our Q2 results. We're pleased to have delivered earnings exceeding expectations. I want to pause and thank all our associates across our stores, supply chain, customer service centers, global operations and corporate offices for delivering these results in a challenging environment.

總結我們第二季度的結果。我們很高興交付超出預期的收益。我想暫停一下，感謝我們商店、供應鏈、客戶服務中心、全球運營和公司辦事處的所有員工在充滿挑戰的環境中取得了這些成果。

Now let's turn to our outlook. We are updating our fiscal '23 guidance to reflect both the ongoing top line uncertainty and the proven strength in our operating margin. We now expect full year '23 net revenues to be in a range of down 5% comp to down 10% comp, and we are increasing our operating margin outlook to a range of 15% to 16%. It's important to note that our lower sales outlook is offset by our raised operating margin, producing materially similar implied EPS guidance.

現在讓我們談談我們的展望。我們正在更新 23 財年指引，以反映持續的營收不確定性和經證實的運營利潤率實力。我們現在預計 23 年全年淨收入將下降 5% 至 10%，並且我們將營業利潤率預期提高至 15% 至 16%。值得注意的是，我們較低的銷售前景被我們提高的營業利潤率所抵消，產生了實質上相似的隱含每股收益指引。

On the top line, our updated guidance is based upon the facts and trends we know today by extrapolating our 1-, 2- and 4-year trends in Q2 to full year '23 net revenues. Specifically, our Q2 1-year trend yields full year revenues at the low end of guidance. While our Q2 2-year trend yields full year revenues at the midpoint of guidance, and our Q2 4-year trend yields full year revenues at the high end of guidance. While our top line year-over-year comparison gets easier in the back half, we recognize the challenging environment for home furnishings.

最重要的是，我們更新的指導基於我們今天所知的事實和趨勢，通過將我們第二季度的 1 年、2 年和 4 年趨勢推斷為 23 年全年淨收入。具體來說，我們第二季度的一年趨勢得出的全年收入處於指導值的低端。雖然我們的第二季度 2 年趨勢得出的全年收入處於指導值的中點，而我們的第二季度 4 年趨勢得出的全年收入處於指導值的高端。雖然我們的收入同比比較在下半年變得更加容易，但我們認識到家居裝飾的充滿挑戰的環境。

On the bottom line, when aligned with historical quarter-over-quarter builds, our strong Q2 operating margin produces full year operating margin within our updated range of 15% to 16%. Additionally, in the back half of the year, our headwinds from the short-term supply chain costs will become tailwinds to support our operating margin guidance. We also expect our full year income tax rate to be approximately 26%. Our 2023 capital allocation plans remain unchanged. We will continue to prioritize funding our business operations. Commensurate with our industry-leading return on invested capital, we will also invest $250 million in capital expenditures in high-return projects to support our long-term growth.

總而言之，當與歷史季度環比增長保持一致時，我們強勁的第二季度營業利潤率使全年營業利潤率在我們更新的 15% 至 16% 範圍內。此外，今年下半年，短期供應鏈成本帶來的不利因素將成為支持我們營業利潤率指引的有利因素。我們還預計全年所得稅稅率約為 26%。我們的 2023 年資本配置計劃保持不變。我們將繼續優先為我們的業務運營提供資金。與我們行業領先的投資資本回報率相稱，我們還將在高回報項目上投資 2.5 億美元的資本支出，以支持我們的長期增長。

As we have communicated quarterly, we are committed to returning excess cash to shareholders through dividends and opportunistic stock repurchases. We will continue to pay our quarterly dividend of $0.90 per share, and we have almost $700 million remaining under our current $1 billion share repurchase authorization to repurchase our stock opportunistically. As we look further into the future, we are reiterating our long-term guidance of mid- to high single-digit top line growth with operating margins exceeding 15%.

正如我們每季度所傳達的那樣，我們致力於通過股息和機會性股票回購將多餘的現金返還給股東。我們將繼續支付每股 0.90 美元的季度股息，根據目前 10 億美元的股票回購授權，我們還剩下近 7 億美元，可以趁機回購我們的股票。當我們進一步展望未來時，我們重申我們的長期指導，即實現中高個位數收入增長，營業利潤率超過 15%。

We're confident we'll continue to outperform our peers and deliver profitable growth for these reasons. Our ability to gain market share in the 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. With that, I'll open the call for questions.

由於這些原因，我們相信我們將繼續超越同行並實現盈利增長。我們在分散的家居行業中獲得市場份額的能力、我們內部專有設計的實力、我們數字優先而非純數字渠道戰略的競爭優勢、我們增長計劃的持續優勢以及我們的彈性我們的堡壘資產負債表。接下來，我將開始提問。

(Operator Instructions) Our first question comes from Max Rakhlenko from TD Cowen.

（操作員說明）我們的第一個問題來自 TD Cowen 的 Max Rakhlenko。

Congrats on the nice results. So as we think about your margin profile and the long-term outlook, what do you view as structural differences today compared to pre-pandemic versus ones that have been a little bit more temporary in nature and could still potentially have risk ahead?

恭喜取得好成績。因此，當我們考慮您的利潤狀況和長期前景時，與大流行前相比，您認為今天的結構性差異是什麼，而結構性差異本質上是暫時的，並且未來仍可能存在風險？

It's a great question. I think it all goes back to what I've been talking about over the past few quarters regarding our 15% operating margin floor. These structural changes in the business start with our higher e-commerce sales mix where we continue to drive growth in the higher contribution channel and our retail optimization strategy, where we've really repositioned our fleet to be more profitable and more productive.

這是一個很好的問題。我認為這一切都可以追溯到我過去幾個季度一直在談論的關於我們 15% 營業利潤率下限的內容。這些業務結構性變化始於我們更高的電子商務銷售組合，我們繼續推動更高貢獻渠道的增長和我們的零售優化策略，我們真正重新定位了我們的車隊，以提高利潤和生產力。

It also comes down to -- those are structural changes that in and of itself bridge us to a lot of our margin results we're seeing today in second quarter and in our guidance. Additionally, we have the supply chain efficiency that's coming. We've been talking for the past few quarters about the headwinds and the short-term supply chain costs that we're seeing on our balance sheet and how they flowed through our income statement. Those are now behind us, and these headwinds are going to become tailwinds in the back half of '23 and into '24.

它還歸結為 - 這些結構性變化本身將我們與我們今天在第二季度和我們的指導中看到的許多利潤率結果聯繫起來。此外，我們即將提高供應鏈效率。在過去的幾個季度中，我們一直在談論我們在資產負債表上看到的不利因素和短期供應鏈成本以及它們如何在我們的損益表中流動。這些現在已經成為過去，這些逆風將在 23 世紀後半段和 24 世紀變成順風。

We also have the pricing power that I think we demonstrated in Q2 where our in-house design, our proprietary products command a higher price point in the market. And with the strength of our design teams and our global sourcing organization, we're able to provide the consumer with a very competitive value equation for them to consider. We've also demonstrated our ad cost optimization and our in-house capabilities with our own hands on the keyboard really make a difference in our ability to control those costs and leverage them with sales.

我們還擁有定價能力，我認為我們在第二季度展示了這一點，我們的內部設計、我們的專有產品在市場上佔據了更高的價格點。憑藉我們設計團隊和全球採購組織的實力，我們能夠為消費者提供非常有競爭力的價值方程式供他們考慮。我們還展示了我們的廣告成本優化以及我們親手操作鍵盤的內部能力，確實對我們控制這些成本並利用它們進行銷售的能力產生了影響。

And then finally, I'd say our cost inventory reductions, which we demonstrated in the past few quarters, we've managed our SG&A very efficiently. And as you can see, this quarter with our inventory down 16%, we're very good at managing inventory levels over time. Here's the key point. Our operating margin is sustainable and could even go higher from here with more leverage from higher revenues.

最後，我想說的是，我們在過去幾個季度中證明了我們的成本庫存減少，我們非常有效地管理了我們的銷售管理費用。正如您所看到的，本季度我們的庫存下降了 16%，隨著時間的推移，我們非常擅長管理庫存水平。這是關鍵點。我們的營業利潤率是可持續的，甚至可以從現在開始更高，因為更高的收入帶來更多的槓桿作用。

Our next question comes from Seth Basham from Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 Seth Basham。

Could you help us dimensionalize the difference in performance of your business between furniture and nonfurniture categories? How much stronger were nonfurniture categories or how much of a decline did you see year-over-year in furniture-related growth?

您能否幫助我們衡量家具和非家具類別之間的業務績效差異？非家具類別的增長程度如何，或者您認為家具相關的增長同比下降了多少？

Sure. Laura. Yes, so we are so fortunate to have a portfolio of brands serving life stages, different aesthetics and different parts of the house for that matter. And while we do have a large portion of our business in furniture, we also have business and textiles decorating, entertaining. We have quite a robust children's business. Baby is the entry point, dorm. And these are all very different businesses. And so while we did see a generalized pullback across many categories, there's some real winners.

當然。勞拉。是的，所以我們很幸運能夠擁有一系列服務於不同人生階段、不同審美和不同家居領域的品牌。雖然我們的大部分業務確實是家具，但我們也有業務和紡織品裝飾、娛樂業務。我們有相當強勁的兒童業務。寶貝是入口點，宿舍。這些都是非常不同的業務。因此，雖然我們確實看到了許多類別的普遍回調，但還是有一些真正的贏家。

And these winners are not just happenstance. It's because we've been working so hard to build these businesses. We've talked about our growth drivers and that there's both growth in new brands and new ways to sell to customers like B2B. But there's also growth in categories where the market is underserving the customer. And one of those is dorm, and the dorm business is a very large fractioned market. And with the exit of Bed Bath & Beyond and others struggling, we've picked up, I believe, pretty considerable market share very quickly. And we've been working both on the product assortment side of that equation but also on logistics. And there's still a lot of room to grow from here because we're still relatively small.

這些獲獎者不僅僅是偶然。這是因為我們一直在努力建立這些業務。我們已經討論了我們的增長動力，以及新品牌和向 B2B 等客戶銷售的新方式的增長。但市場對客戶服務不足的類別也出現了增長。其中之一就是宿舍，宿舍業務是一個非常大的細分市場。隨著 Bed Bath & Beyond 的退出和其他公司的困境，我相信我們很快就獲得了相當可觀的市場份額。我們不僅致力於產品分類方面的工作，還致力於物流方面的工作。而且還有很大的增長空間，因為我們仍然相對較小。

Thus I give you that as an example of a category that's really outperforming what you see in our total average numbers. And there's a lot of other examples like that, whether it's Hold Everything and Williams-Sonoma. Williams-Sonoma itself, I think you see the performance in the kitchen business. That team has worked very hard to build new businesses and expand their branded assortments as a percent of total. Those are things that they are designing and developing that cannot be found elsewhere. That's been a very important strategy.

因此，我將其作為一個類別的示例，該類別的表現確實優於您在我們的總平均數字中看到的結果。還有很多類似的例子，無論是“Hold Everything”還是“Williams-Sonoma”。威廉姆斯-索諾瑪本身，我想你看到了廚房業務的表現。該團隊非常努力地建立新業務並擴大其品牌種類占總數的百分比。這些是他們正在設計和開發的東西，在其他地方找不到。這是一個非常重要的策略。

And yes, furniture is softer. There is definitely a pullback in furniture. And we are planning the -- this will be the case until the environment strengthens. And so as you look at us to the back half of the year, the reality is these holidays, entertaining, gift-giving, those are strong points for us. And so we're going to be really leaning into them with exciting new products and really relevant marketing as we go to the holiday season.

是的，家具更柔軟。家具肯定會出現回調。我們正在計劃——這種情況將持續到環境改善為止。因此，當你回顧今年下半年的情況時，現實是這些假期、娛樂、送禮，這些都是我們的強項。因此，當我們進入假期時，我們將通過令人興奮的新產品和真正相關的營銷來真正依靠它們。

Our next question comes from Chuck Grom from Gordon Haskett.

我們的下一個問題來自戈登·哈斯克特的查克·格羅姆。

Laura, I was wondering if you could talk about the health of your customer today and overall demand indicators that you guys evaluate. As we've kind of progressed through earnings here, a number of retailers, some off-price names have called out the category as rebasing a little bit. I'm just wondering if you would share in that thought process. And then my follow-up is just on your overall pricing strategy. You talked about it a little bit in your prepared remarks, but I was wondering if you could elaborate a little bit more on that and how big of an advantage it is for Sonoma.

勞拉，我想知道您是否可以談談今天客戶的健康狀況以及你們評估的總體需求指標。隨著我們的盈利取得一定進展，許多零售商和一些折扣品牌都稱該類別的基礎有所調整。我只是想知道你是否願意分享這個思考過程。然後我的後續行動只是關於您的整體定價策略。您在準備好的發言中談到了這一點，但我想知道您是否可以詳細說明這一點以及這對索諾瑪來說有多大的優勢。

Yes. Thank you, Chuck. It's definitely an uneven macro environment. Every day, we hear different messages, right? So we have the positive indicators in the stock market and jobs, but there's still a fear of layoffs at the higher income levels. And then you also have the obvious negative indicators for businesses like ours, like interest rates and housing. So it's a mixed bag but the consumer confidence is up. They're spending a lot of money on travel and services. We all know that there's definitely a movement out of categories like ours into some of those other areas.

是的。謝謝你，查克。這絕對是一個不平衡的宏觀環境。我們每天都會聽到不同的消息，對嗎？因此，我們在股市和就業方面有積極的指標，但仍然擔心較高收入水平的裁員。對於我們這樣的企業來說，還有明顯的負面指標，比如利率和住房。因此，情況好壞參半，但消費者信心有所上升。他們在旅行和服務上花了很多錢。我們都知道，肯定會有一種運動從我們這樣的類別轉移到其他一些領域。

And yet at the same time, we talked about this, we were in New York. Customers love their homes. And right now is not a time when they're buying a new one or moving as much, but they're always thinking about it and thinking about the next project. And easy updates to the home and life stage changes and gift-giving around the home are very relevant and as relevant today as they've ever been.

但與此同時，我們在紐約談論了這個。顧客熱愛他們的家。現在不是他們購買新房子或搬家的時候，但他們總是在思考它並思考下一個項目。家庭的簡單更新和生活階段的變化以及家庭周圍的禮物贈送是非常相關的，並且在今天和以往一樣相關。

In terms of pricing, Jeff touched on it in the beginning. But I just want to remind everybody what makes this really, really different than other people in this business. We design and source 90% of our products. And as a result, we are able to deliver a higher-quality value equation to our customers, and we have scale. And so the vendors are very happy to work with us to value engineer our products and it's a huge advantage. There are a lot of people out there buying offline. And so it's a race to the bottom on pricing because there's not a lot of differentiation.

在定價方面，傑夫一開始就談到了這一點。但我只是想提醒大家，是什麼讓這與這個行業的其他人真正、真正不同。我們 90% 的產品都是由我們設計和採購的。因此，我們能夠為客戶提供更高質量的價值方程式，並且我們擁有規模。因此，供應商非常樂意與我們合作，對我們的產品進行價值設計，這是一個巨大的優勢。有很多人在線下購買。因此，這是一場價格戰，因為沒有太多差異化。

Honestly, they're selling a totally different level of quality. And then there's people who are really at the high end and substantially more expensive than we are. But honestly, we care about all of them. And so we're constantly checking our prices against the competition. And we are constantly reviewing our products in person vis-à-vis the competition. I got to tell you, I feel really good about where we sit because there are big differences, and we have a huge advantage in the design quality value equation. In some cases, yes, we have reduced prices, but we have also received cost decreases from our vendors. It's a big important point.

老實說，他們銷售的質量水平完全不同。還有一些人確實處於高端，而且比我們貴得多。但老實說，我們關心他們所有人。因此，我們不斷對照競爭對手檢查我們的價格。我們不斷親自與競爭對手一起審查我們的產品。我必須告訴你，我對我們所處的位置感覺非常好，因為存在很大差異，而且我們在設計質量價值等式中擁有巨大優勢。是的，在某些情況下，我們降低了價格，但我們也從供應商那裡獲得了成本降低。這是非常重要的一點。

I have to be honest, we also have increased prices still in some categories where we thought we were too low. And this is a constant testing, learning, rolling across brands. And part of our religion just like retail optimization or real estate, all of it, this is our discipline and I think we're quite good at it.

老實說，我們還提高了某些我們認為價格太低的類別的價格。這是一個不斷測試、學習、跨品牌滾動的過程。我們宗教的一部分就像零售優化或房地產一樣，所有這一切，這是我們的學科，我認為我們非常擅長。

Our next question comes from Cristina Fernández from Telsey Advisory Group.

我們的下一個問題來自特爾西諮詢集團的克里斯蒂娜·費爾南德斯。

Nice profitability. I wanted to ask on the gross margin. Came better than expected I expected this quarter. So if you could talk about what is leading to that outperformance relative to the first quarter. And as you look at the revised operating margin for the year, maybe you can help us with what are the buckets where you're seeing better profitability that gives you confidence to raise the outlook even with the lower sales.

盈利能力不錯。我想問一下毛利率。本季度的表現比我預期的要好。那麼，您是否可以談談是什麼導致了相對於第一季度的優異表現。當您查看今年修訂後的營業利潤率時，也許您可​​以幫助我們了解哪些領域的盈利能力更好，讓您有信心在銷售額較低的情況下提高前景。

Yes, so gross margin at 40.7% sequentially improved 210 basis points over Q1. There were really 3 main drivers behind this: first, our lower inventory levels enabled us to maintain our promotional levels consistent, unlike others in the marketplace; second, our improved customer service resulted in lower costs. We had less out-of-market, fewer multiple shipments for an order as well as things like damages, appeasements and replacements that go along with all those things; and finally, it was the wind-down of the residual capitalized supply chain costs that have been sitting on our balance sheet that we've been talking about the past few quarters.

是的，毛利率為 40.7%，比第一季度提高了 210 個基點。這背後確實有 3 個主要驅動因素：首先，與市場上的其他公司不同，我們較低的庫存水平使我們能夠保持一致的促銷水平；其次，我們改進的客戶服務降低了成本。我們的缺貨情況、訂單的多次發貨以及與所有這些事情相關的損害、綏靖和更換等情況都減少了；最後，過去幾個季度我們一直在談論我們資產負債表上剩餘資本化供應鏈成本的逐步減少。

We don't like to guide individual lines as we look towards the back half, but the important thing to remember is we've been consistently speaking about all these headwinds becoming tailwinds. And the capitalized costs are behind us. The ocean freight, as everyone knows, has come down, and we do anticipate that we'll see the benefit of that in the second half.

當我們展望後半段時，我們不喜歡引導單獨的路線，但要記住的重要一點是，我們一直在談論所有這些逆風變成順風。資本化成本已經成為過去。眾所周知，海運費已經下降，我們預計下半年我們將看到其好處。

Our next question comes from Anthony Chukumba from Loop Capital Markets.

我們的下一個問題來自 Loop Capital Markets 的 Anthony Chukumba。

Congrats on the better-than-expected profitability as well. I guess my question is on the promotional environment -- competitive promotional environment. I just was wondering if you can comment on what you've seen, let's say, sequentially over the last few months and then also how it compares to pre-pandemic levels.

也祝賀好於預期的盈利能力。我想我的問題是關於促銷環境——競爭性促銷環境。我只是想知道您是否可以評論一下您在過去幾個月中所看到的情況，以及與大流行前的水平相比如何。

Sure. We do definitely see elevated levels of promotion in the market, really exacerbated by the liquidation of Bed Bath & Beyond. And we are tracking pricing decreases at key competitors, noting that they are much more promotional versus last year and versus us. We are committed, as you know, it's running our business without the use of site-wide promotions. We are using markdowns to manage some reverse as we've always done.

當然。我們確實看到市場上的促銷活動不斷增加，而 Bed Bath & Beyond 的清算確實加劇了這種情況。我們正在跟踪主要競爭對手的價格下降情況，並指出與去年和我們相比，他們的促銷力度要大得多。如您所知，我們致力於在不使用全站促銷的情況下運營我們的業務。正如我們一直所做的那樣，我們正在使用降價來管理一些反向操作。

But when you look at all the other people out there as well, you'll see hidden promo tactics, including e-mail sign-up discounts, coupon matches, reductions of price in different categories, none of which we are doing at this point. And we are absolutely committed to the stance. We think it's the healthiest way to run our business for the long term, and it's a function of the high-quality sustainable products we offer. So I don't know that I can comment about versus pre-pandemic, it seems so long ago. It was quite promotional then too but we haven't done that analysis.

但當你看看其他人時，你會發現隱藏的促銷策略，包括電子郵件註冊折扣、優惠券匹配、不同類別的價格降低，而我們目前還沒有這樣做。我們絕對致力於這一立場。我們認為這是長期經營我們業務的最健康的方式，並且它是我們提供的高質量可持續產品的功能。所以我不知道我可以對大流行前的情況發表評論，這似乎是很久以前的事了。當時也有相當多的促銷活動，但我們還沒有進行分析。

Our next question comes from Peter Benedict from Baird.

我們的下一個問題來自貝爾德 (Baird) 的彼得·本尼迪克特 (Peter Benedict)。

Jeff, maybe 1 for you. Just I don't know if you could help us maybe size the advertising cost leverage you guys have seen in the first half of the year. And maybe how do you think about the second half, given the various revenue paths that you've laid out? I understand the agility of that model, but just trying to think through how much leverage you expect to get on that. Or is it did your ad spend just come down as the sales are coming down? And so just if you can help kind of dimensionalize that for us, that would be super helpful.

傑夫，也許 1 適合你。只是我不知道你們是否可以幫助我們調整你們在今年上半年看到的廣告成本槓桿的大小。考慮到您制定的各種收入途徑，您如何看待下半年？我理解該模型的敏捷性，但只是想思考一下您希望在該模型上獲得多少槓桿作用。或者是隨著銷售額的下降，您的廣告支出也隨之下降？因此，如果您能幫助我們將其維度化，那將非常有幫助。

Yes, sure. Peter, thank you. Look, our Q2 SG&A at 26.1% leveraged 30 basis points. This reflects our financial discipline and ability to control costs. And in the quarter, we leveraged both employment and ad costs. And as you all know, we don't like to guide individual P&L line items. But I think you can keep 3 factors in mind as you model the back half.

是的，當然。彼得，謝謝你。看，我們第二季度的 SG&A 率為 26.1%，槓桿率為 30 個基點。這反映了我們的財務紀律和控製成本的能力。在本季度，我們利用了就業和廣告成本。眾所周知，我們不喜歡指導單個損益行項目。但我認為在為後半部分建模時可以記住 3 個因素。

From an employment standpoint, the majority of our employment is in our stores, distribution centers and call centers where we have the ability to flex with sales. But look, there are some fixed costs that will leverage with lower sales. Getting specifically to your question our in-house advertising with our in-house own hands on the keyboard approach to marketing its competitive advantage, it does allow us to adjust spend as we see business trends evolve. But there's a minimum amount of advertising we'd always do. So there's a limit to the amount that we would be able to leverage that line.

從就業的角度來看，我們的大部分就業機會是在我們的商店、配送中心和呼叫中心，在那裡我們有能力靈活調整銷售。但你看，有一些固定成本會影響銷售額的下降。具體到你的問題，我們的內部廣告通過我們內部自己親自動手的鍵盤方法來營銷其競爭優勢，它確實允許我們隨著業務趨勢的發展而調整支出。但我們始終會做最低限度的廣告。因此，我們能夠利用該線的金額是有限的。

And third, I think this is the most important point for everyone. I just want to remind everyone that in Q4 last year, we benefited from a reduction in incentive compensation and some insurance proceeds. We do not anticipate being able to anniversary that this year, which will likely impact our Q4 SG&A rate. When you take a step back, I think the key takeaway here is our SG&A leverage shows the flexibility of our operating model, our commitment to financial discipline and our ability to control costs.

第三，我認為這對每個人來說都是最重要的一點。我只是想提醒大家，去年第四季度，我們受益於激勵補償和部分保險收益的減少。我們預計今年不會迎來週年紀念日，這可能會影響我們第四季度的銷售、管理及行政費用率。當你退後一步時，我認為這裡的關鍵要點是我們的銷售及管理費用槓桿顯示了我們運營模式的靈活性、我們對財務紀律的承諾以及我們控製成本的能力。

Our next question comes from Brian Nagel from Oppenheimer.

我們的下一個問題來自奧本海默的布萊恩·內格爾。

Congrats on a nice quarter here. So my question just with regard with furniture. So maybe I'll kind of wrap a few questions into one. But you talked about a more challenged backdrop there. So the question I have is, are you seeing -- as you look at the furniture category, is it getting worse? Are you seeing -- did you see weakening demand through the quarter so far in the back half?

恭喜您度過了一個愉快的季度。所以我的問題只是關於家具。所以也許我會把幾個問題合併成一個。但你談到了那裡更具挑戰性的背景。所以我的問題是，當你審視家具類別時，你是否發現情況正在變得更糟？您是否看到--您是否看到本季度下半年迄今為止的需求疲軟？

And I guess it's easy though it's not. There's a lot of reasons we can in bigger tickets. A lot of other companies have called out weakness in bigger ticket. Is it a consumer dynamic? Are you seeing something more competitively there as well? And then just a final piece of it, as we think about the back half of the year, just remind us on the seasonality, the general seasonality of furniture. I mean, does furniture become less significant as we head towards the holiday season?

我想這很容易，但事實並非如此。我們可以有很多理由購買更大的門票。許多其他公司也指出了大票的弱點。這是消費者動態嗎？您是否也看到了更具競爭力的東西？最後一點，當我們思考下半年時，提醒我們季節性，家具的一般季節性。我的意思是，隨著假期的臨近，家具是否變得不那麼重要了？

Thanks, Brian. Yes. I mean, certainly, furniture becomes less significant as we head towards the holiday season and Williams-Sonoma becomes a larger part of our total. And also the Pottery Barn decorating and gift-giving business also really shines at that time of the year. We have been working hard to increase the seasonal holiday assortment in West Elm as well. And I'm excited that we have a good amount of newness for West Elm this holiday season. I think it looks great.

謝謝，布萊恩。是的。我的意思是，當然，隨著假期的臨近，家具變得不再那麼重要，而威廉姆斯-索諾瑪在我們的總數中所佔的比例更大。陶器穀倉的裝飾和送禮業務在每年的這個時候也非常火爆。我們也一直在努力增加西榆樹的季節性假期種類。我很高興西榆樹這個假期有很多新鮮事。我認為它看起來很大。

In terms of furniture cadence, we don't really comment on cadence. I think you know that. There are some real winners in our furniture assortment. It's amazing to look at all the differences and see where the customer is going. And we're thrilled to see some of our new fall programs doing really well and seeing what the customer is looking for. And we're building on those wins, of course, and then reducing inventory on things that are not working. But it's in total, the furniture business, I said earlier, there's pullback. And it's, I think, a real function of people not moving as much right now and being scared of the high ticket.

就家具節奏而言，我們並不真正評論節奏。我想你知道這一點。我們的家具系列中有一些真正的贏家。看到所有差異並了解客戶的去向真是令人驚奇。我們很高興看到我們的一些新的秋季項目做得非常好，並看到了客戶的需求。當然，我們正在這些勝利的基礎上再接再厲，然後減少不起作用的庫存。但總的來說，我之前說過，家具業務出現了衰退。我認為，這是人們現在沒有那麼多活動並且害怕高價的真正原因。

And we still continue to see the opposite in high-end electrics. So there's a lot of mix messages out there for the consumer -- the consumer is giving us. And what we're doing is really without giving away the farm competitively on this call, focusing on what they're telling us. And the good news is that we -- when we go to the back half of the year, the comps get easier. And we have our strength in the categories that they seem to be responding to at this point anyway.

我們仍然繼續在高端電子產品中看到相反的情況。因此，消費者向我們傳達了很多混合信息。我們所做的實際上是在這次電話會議上不競爭性地放棄農場，而是專注於他們告訴我們的內容。好消息是，當我們進入下半年時，比賽會變得更容易。無論如何，我們在他們目前似乎正在回應的類別上擁有我們的優勢。

Our next question comes from Oliver Wintermantel from Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Oliver Wintermantel。

I had a question just regarding your online penetration, if that was still about mid-60s percent or if that has shifted? And then longer term, how you think about the store base. I know there were like some store closures. And what do you think your online penetration should be going forward with store closures on that?

我有一個關於你們的在線滲透率的問題，是否仍然在 60% 左右，或者是否已經發生變化？然後從長遠來看，您如何看待商店基礎。我知道有些商店關門了。您認為隨著商店的關閉，您的在線滲透率應該如何發展？

I think we're seeing consistent performance, and my answer would be consistent with what we've been saying. From a long-term standpoint, we see the industry continuing to transition from retail to online. And with our penetration around 66%, we see it going to 70% over time. That's Williams-Sonoma's penetration of e-commerce. From a retail optimization standpoint, our strategy remains unchanged. We have about 50% of our leases come due over the next 3 years. We will very carefully go through those and look to optimize the fleet.

我認為我們看到了一致的表現，我的答案將與我們所說的一致。從長遠來看，我們看到該行業繼續從零售向在線轉型。我們的滲透率約為 66%，我們預計隨著時間的推移，這一比例將達到 70%。這就是威廉姆斯-索諾瑪對電子商務的滲透。從零售優化的角度來看，我們的策略保持不變。我們大約 50% 的租約將在未來 3 年內到期。我們將非常仔細地檢查這些內容並尋求優化機隊。

Some of that is closing underperforming stores that don't meet our profitability thresholds. Others are repositioning stores to better locations where we see a very quick return on investment and really pick up some nice market share and good results. A good example of that is the Pottery Barn store in Westport, Connecticut, which we moved from one location where we were underperforming both on the top and bottom line. And the new location not only looks fantastic, I invite everybody to go join it, but it's way outperforming the prior location and giving us a very good return on the investment there.

其中一些是關閉不符合我們盈利閾值的表現不佳的商店。其他人正在將商店重新定位到更好的位置，我們看到投資回報非常快，並且確實獲得了一些不錯的市場份額和良好的業績。康涅狄格州韋斯特波特的 Pottery Barn 商店就是一個很好的例子，我們從一個在營收和利潤方面都表現不佳的地點搬遷了該店。新地點不僅看起來棒極了，我邀請每個人都去加入它，而且它的表現遠遠優於之前的地點，並為我們在那裡的投資帶來了非常好的回報。

So we do continue to see that we'll continue to call the fleet and optimize that. But overall, I think this is part of our key strategy and part of our key things that are going to make us really come out ahead over the long run. The fundamental dynamics in the home furnishing industry haven't really changed. It's a very fragmented market with no one clear commanding sizable share. Our key differentiators, which include our in-house design, our digital-first but not digital-only channel strategy, our strong portfolio of brands, our growth initiatives and our fortress balance sheet position us well to take market share in any environment.

因此，我們確實會繼續呼叫車隊並對其進行優化。但總的來說，我認為這是我們關鍵戰略的一部分，也是我們關鍵事情的一部分，從長遠來看，這些事情將使我們真正取得領先。家居行業的基本動態並沒有真正改變。這是一個非常分散的市場，沒有人明確佔據相當大的份額。我們的主要差異化因素包括我們的內部設計、我們的數字優先但不僅僅是數字的渠道戰略、我們強大的品牌組合、我們的增長計劃和我們的堡壘資產負債表，使我們能夠在任何環境下佔據市場份額。

Our next question comes from Brad Thomas from KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Brad Thomas。

Good execution here. I wanted to follow up on B2B. Still a ton of opportunity there. Hoping you could just give us a little more sense of maybe where you're thinking the revenues come in on B2B for the year in your updated guidance. And maybe any updated thoughts on what gets that business growing again?

這裡執行得很好。我想跟進B2B。那裡仍然有很多機會。希望您能在更新的指南中讓我們更多地了解您認為今年 B2B 收入的情況。也許對於如何讓該業務再次增長有任何最新的想法？

Yes. Thank you. That's a great question. B2B continues to be one of our most exciting initiatives. And while the total business ran down 5% in Q2, which was an improvement over Q1, the contract business, which is the source of our growth and really where our focus is, grew 23% in the quarter to achieve our largest quarter-to-date in contract. And as Laura mentioned in her prepared remarks, we've seen quite a few notable wins. San Antonio Spurs training facility, Sony in the entertainment space and multiple projects with The Montage, Four Seasons, Westin, Hilton and Hyatt.

是的。謝謝。這是一個很好的問題。 B2B 仍然是我們最令人興奮的舉措之一。雖然第二季度總業務下降了5%，比第一季度有所改善，但作為我們增長源泉、也是我們真正關注的重點的合同業務在本季度增長了23%，實現了我們最大的季度環比增長。 - 合同日期。正如勞拉在她準備好的發言中提到的那樣，我們已經看到了很多值得注意的勝利。聖安東尼奧馬刺隊訓練設施、索尼娛樂領域以及蒙太奇酒店、四季酒店、威斯汀酒店、希爾頓酒店和凱悅酒店的多個項目。

Overall, we're not seeing a slowdown in the contract side of the business. There's a large backlog of projects coming out of the pandemic, and we see a steady pipeline of bids we've gone out of. And I think you have to remember, this business has 2 formats, trade and contract. Trade is currently more volume but contract is the source of our growth. And while the trade business has been more impacted by the slowed housing market, we've seen recent improvement in the trend, but our focus is on accelerating our contract growth.

總體而言，我們沒有看到合同方面的業務放緩。疫情期間出現了大量積壓的項目，我們看到我們已經完成了穩定的投標。我認為你必須記住，這項業務有兩種格式：貿易和合同。目前貿易量較大，但合同是我們增長的源泉。雖然貿易業務受到房地產市場放緩的影響更大，但我們最近看到趨勢有所改善，但我們的重點是加速合同增長。

The key point when you think about B2B is it continues to be a winning strategy for us, and we continue to capture market share in an $80 billion fragmented market. It leverages our portfolio of brands, our in-house design team and our global sourcing capabilities, and we can really service the B2B customer in multiple ways.

當你想到 B2B 時，關鍵是它仍然是我們的製勝戰略，我們繼續在價值 800 億美元的分散市場中佔領市場份額。它利用我們的品牌組合、內部設計團隊和全球採購能力，我們可以通過多種方式真正為 B2B 客戶提供服務。

Our next question comes from Steven Zaccone from Citi.

我們的下一個問題來自花旗銀行的 Steven Zaccone。

Laura, I'm curious for your perspective of the overall industry at the halfway point in the year. Do you think the industry has gotten more promotional than you've expected and you're just not willing to participate? Or is it just overall, you've seen a bigger pullback in kind of furniture spending? And then as you look to the second half of the year, if the industry stays promotional, would you not be comfortable in kind of participating in that? We should think sales are probably going to come in at the low end of the range.

勞拉，我很好奇你對今年中期整個行業的看法。您是否認為該行業的宣傳力度超出了您的預期，而您只是不願意參與？或者只是總體而言，您看到家具支出出現了更大的縮減？然後，當你展望下半年時，如果該行業繼續促銷，你會不願意參與其中嗎？我們應該認為銷量可能會處於該範圍的低端。

The industry has always been promotional. Honestly, it is promotional before the pandemic and promotional now. Our stance is the same that it's been. We want to give our customers the best design, the best quality and the best value versus running up and down pricing, which is a very short-term way to run your business and creates a lot of customer friction, honestly. Think about a customer who buys something and then sees the price get reduced. So it's not good for customer service.

這個行業一直都是促銷的。老實說，疫情前是促銷，現在也是促銷。我們的立場與過去一樣。我們希望為客戶提供最好的設計、最好的質量和最好的價值，而不是上下定價，老實說，這是一種非常短期的業務經營方式，會造成很多客戶摩擦。想像一下一位顧客購買了某樣東西，然後發現價格降低了。所以這不利於客戶服務。

And when we think about what the right thing to do is, we think about our customer. And how do we always give them a better product? How do we improve the quality? How do we improve the pricing versus thinking about the short term? And so I feel very good about our product lineup. I feel that we are continually looking at where we should make small pricing adjustments. We are maniacal about inventory optimization and clearing things that are not selling. And I think that's the right way to run a retail business. You've seen us bring our inventory levels down pretty substantially. And yet, we're in better stock than we've been in for a long time. So we're pretty, I think, well set up. And as we said earlier, that's why we're confident in the guidance we gave this morning.

當我們思考什麼是正確的做法時，我們會想到我們的客戶。我們如何才能始終為他們提供更好的產品？我們如何提高質量？相對於短期考慮，我們如何改進定價？所以我對我們的產品陣容感覺非常好。我覺得我們正在不斷研究應該在哪裡進行小幅定價調整。我們熱衷於庫存優化和清理賣不出去的東西。我認為這是經營零售業務的正確方式。您已經看到我們大幅降低了庫存水平。然而，我們的庫存比長期以來更好。所以我認為我們已經準備好了。正如我們之前所說，這就是為什麼我們對今天早上給出的指導充滿信心。

Our last question will come from Marni Shapiro from Retail Tracker.

我們的最後一個問題將來自 Retail Tracker 的 Marni Shapiro。

And Laura, that LoveShackFancy has like taken over TikTok. Congrats on that. Can you just touch back again on the pricing and promotion? It seems from being in your stores and on your sites on a very regular basis that you've taken a very focused and consistent view on pricing on furniture and not really promoting on furniture where it's a considered purchase. Somebody is not passing your store and saying, "Oh, I think I want to update my couch today." It's a considered purchase.

還有 Laura，LoveShackFancy 已經接管了 TikTok。對此表示祝賀。您能再談談定價和促銷嗎？從您定期出現在您的商店和網站上來看，您似乎對家具定價採取了非常集中和一致的看法，而不是在考慮購買的家具上進行真正的促銷。不會有人經過你的商店並說：“哦，我想我今天想更新我的沙發。”這是經過深思熟慮的購買。

And you're pulling promotions where you need to in things like seasonal holiday, even something like a throw or something like that, where a consumer might be on your site and say, "Oh, you know what, 20% off, I think I will buy that." Is that sort of the path forward? Is that how we should think about your use of promotion and pricing going forward for the brands?

你會在季節性假期等你需要的地方進行促銷活動，甚至是扔東西之類的東西，消費者可能會在你的網站上說：“哦，你知道嗎，我想有 20% 的折扣我會買那個。”這是前進的道路嗎？我們應該如何考慮您對品牌未來的促銷和定價的使用？

It's an interesting comment, Marni, and I think you're right about considered purchases versus things that just inspire you to buy. But we're not actually actively doing it that way. We're looking at, as I said earlier, what's the best price for the product in the market and how do we win and really being self-critical to constantly improve our pricing value equation. And sometimes that means reducing a price. Sometimes that means changing the color or making something smaller or making something larger.

這是一個有趣的評論，Marni，我認為你對於深思熟慮的購買與僅僅激發你購買的東西的看法是正確的。但我們實際上並沒有積極這樣做。正如我之前所說，我們正在研究市場上產品的最佳價格是多少，以及我們如何獲勝，並真正進行自我批評，不斷改進我們的定價價值方程式。有時這意味著降低價格。有時這意味著改變顏色或使某些東西變小或使某些東西變大。

And it's really based on the customer's reaction to the product and every day they vote with their sales, and we can see we have a lot of data, what they're interested in and what is exciting them. And as I said, I'm optimistic about not just the near term but the future of the business because we have such competitive advantages with our products -- proprietary product pipeline platform, others don't -- who don't design and endorse their own products. So thank you for the question. And yes, LoveShackFancy is fantastic.

它實際上是基於客戶對產品的反應以及他們每天對銷售進行投票，我們可以看到我們有大量數據，他們對什麼感興趣以及什麼讓他們興奮。正如我所說，我不僅對近期而且對業務的未來感到樂觀，因為我們的產品擁有如此的競爭優勢 - 專有產品管道平台，其他人則沒有 - 誰不設計和認可他們自己的產品。謝謝你的提問。是的，LoveShackFancy 非常棒。

This will conclude today's question-and-answer session. I would like to turn the call back over to Laura Alber for any closing remarks.

今天的問答環節到此結束。我想將電話轉回給勞拉·阿爾伯 (Laura Alber)，讓其發表結束語。

Well, thank you, all. I really appreciate your support and all your questions and your interest, and I look forward to seeing you all soon.

嗯，謝謝大家。我非常感謝您的支持以及您的所有問題和興趣，我期待很快見到您。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。