Williams-Sonoma Inc (WSM) 2023 Q4 法說會逐字稿

Welcome to the Williams-Sonoma, Inc. Fourth 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 年第四季財報電話會議。 （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 fourth quarter earnings call. Before we get started, 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 '24 and our long-term outlook. We believe these statements reflect our best estimates. However, we cannot make any assurances that these statements will materialize and actual results may differ significantly from our expectations.

早安，感謝您參加我們的第四季財報電話會議。在我們開始之前，我想提醒您，在這次電話會議中，我們將就未來事件和財務業績做出前瞻性聲明，包括 24 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。

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. 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 measure 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.

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。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 指標與最直接可比較的 GAAP 指標的詳細調整結果請參閱我們今天早上早些時候發布的新聞稿的附件 1。這項呼籲也應與我們向 SEC 提交的文件結合起來考慮。

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將提供本次電話會議的重播。現在我想將電話轉給我們的總裁兼執行長勞拉·阿爾伯 (Laura Alber)。

Thank you, Jeremy. Good morning, everyone, and thank you for joining the call. Before we get into our Q4 results, I'd like to acknowledge the accomplishments of the entire team at Williams-Sonoma, Inc. The results we are about to share with you today reflect their collaboration, innovation and dedication, and I want to give everybody on this team a huge shout-out and a huge thank you.

謝謝你，傑瑞米。大家早安，感謝您加入通話。在我們討論第四季度的結果之前，我想對 Williams-Sonoma, Inc. 整個團隊所取得的成就表示認可。我們今天要與您分享的結果反映了他們的協作、創新和奉獻精神，我想給予向這個團隊中的每個人致以深深的謝意和衷心的感謝。

We are pleased with our strong finish to 2023. In Q4, our comp came in above expectations at negative 6.8%, with a 2-year comp at negative 7.4% and a 4-year comp at positive 29.1%. In the quarter, we exceeded profitability estimates with an operating margin of 20.1% and earnings per share of $5.44.

我們對 2023 年的強勁業績感到滿意。第四季度，我們的比較結果為負 6.8%，超出預期，其中 2 年比較為負 7.4%，4 年比較為正 29.1%。本季度，我們的營業利潤率為 20.1%，每股收益為 5.44 美元，超出了獲利預期。

Turning to the full year. Our comp went down 9.9% with a 2-year comp at negative 3.4% and a 4-year comp at positive 35.6%. We delivered an annual operating margin of 16.4% with full year earnings per share of $14.85 beating our 2023 comp guidance of negative 10% to negative 12% and hitting our operating margin range of 16% to 16.5%.

轉至全年。我們的比較下降了 9.9%，其中 2 年比較為負 3.4%，4 年比較為正 35.6%。我們的年度營業利潤率為 16.4%，全年每股收益為 14.85 美元，超出了 2023 年負 10% 至負 12% 的公司指導，並達到了 16% 至 16.5% 的營業利潤率範圍。

I think it's worth putting these results in context. 4 years ago, the global pandemic changed how we worked and lived as most of us began to spend an unprecedented amount of time in our homes and interest rates were historical lows. As a result of these 2 dynamics, the demand for home furnishing surged. Our company was well positioned to meet this demand with its compelling product assortment, supply chain capabilities and the experience of our tenured management team. But the demand of the pandemic came with complications, including supply chain inefficiencies and higher vendor costs. Despite these increased costs and complexities, we stayed focused on innovating our proprietary products, running a full price business and managing ad costs and employment expenses.

我認為值得將這些結果放在上下文中。四年前，全球大流行改變了我們的工作和生活方式，因為我們大多數人開始在家裡度過前所未有的時間，利率處於歷史低點。由於這兩種動力，家居需求激增。我們公司憑藉其引人注目的產品種類、供應鏈能力以及我們的終身管理團隊的經驗，能夠很好地滿足這一需求。但疫情的需求也帶來了複雜性，包括供應鏈效率低下和供應商成本上升。儘管成本和複雜性增加，我們仍然專注於創新我們的專有產品、經營全價業務以及管理廣告成本和僱用費用。

As we came out of the record year in 2022, we started to see slowing in our sales trend as interest rates increased and home sales declined. Decreases in furniture demand continued to put pressure on our top line. But again, we stayed focus on transforming our operations, cutting costs and improving supply chain inefficiencies, all which drove us to nearly double our profitability compared to pre-pandemic. Our exceptional results in 2023 were driven by strong operational execution in a challenging environment for home furnishings.

當我們走出 2022 年創紀錄的年份時，我們開始看到隨著利率上升和房屋銷售下降，我們的銷售趨勢放緩。家具需求的下降持續給我們的收入帶來壓力。但我們再次專注於營運轉型、削減成本和改善供應鏈效率低下的問題，所有這些都促使我們的獲利能力與疫情前相比幾乎翻了一番。我們在充滿挑戰的家居環境中強大的營運執行力推動了我們 2023 年的卓越業績。

While the data suggested that consumers were resilient, they shifted away from home into experiences in entertainment and they have been hesitant on furniture purchases. Nonetheless, we have continued to drive results. From prepandemic through the pandemic and to today, we have navigated, learned, optimized and built all in preparation for our next chapter of growth. We have developed a strong omni-channel platform and have invested in a distribution network with additional capacity.

雖然數據顯示消費者俱有彈性，但他們從家庭轉向娛樂體驗，並且在購買家具方面一直猶豫不決。儘管如此，我們仍在繼續推動成果。從大流行前到大流行，再到今天，我們已經進行了導航、學習、優化和構建，為我們的下一個增長篇章做好了準備。我們開發了強大的全通路平台，並投資了具有額外容量的分銷網絡。

Going forward, we see another growth opportunity on the horizon for our company, resulting from a more normalized interest rate environment, improved home sales and our strategy. As we look to next year and beyond, we are focused on 3 key priorities: First, returning to growth; second, elevating our world-class customer service; and three, driving margins. Our growth will be driven by our business strategies in each of our core businesses, our B2B program, our emerging brands and our global business.

展望未來，由於利率環境更加正常化、房屋銷售改善以及我們的策略，我們看到公司即將迎來另一個成長機會。展望明年及以後，我們將重點放在三個關鍵優先事項：第一，恢復成長；第二，提升我們世界級的客戶服務；第三，提高利潤率。我們的成長將由我們每項核心業務、B2B 計畫、新興品牌和全球業務的業務策略所推動。

We will continue to improve our world-class customer service by driving supply chain improvements from reduced out of market and multiple shipments, fewer customer accommodations, lower returns and damages and reduced replacements. These improvements will continue to contribute meaningfully to our profitability in 2024 and beyond. And we see opportunity to drive margin by continuing our focus on full price selling and cost negotiations.

我們將透過減少市場外和多次發貨、減少客戶住宿、降低退貨和損壞以及減少更換來推動供應鏈改進，從而繼續改善我們的世界級客戶服務。這些改進將繼續對我們 2024 年及以後的獲利能力做出有意義的貢獻。我們看到了透過繼續關注全價銷售和成本談判來提高利潤率的機會。

As it relates to other cost efficiencies, we will maintain our employment cost savings that we achieved last year following our comprehensive review of our organization structure. Regarding marketing, we continue to increase our spend, and we are seeing very effective returns on our paid marketing and on our social strategy. This investment will both drive sales and help us acquire new customers. Our in-house marketing expertise and performance-driven approach continues to serve as a differentiator between us and our peers.

由於它與其他成本效率相關，我們將在對組織結構進行全面審查後維持去年實現的僱用成本節約。在行銷方面，我們繼續增加支出，我們在付費行銷和社交策略上看到了非常有效的回報。這項投資將推動銷售並幫助我們獲得新客戶。我們的內部行銷專業知識和績效驅動的方法繼續成為我們與同行之間的差異化因素。

Also, our ongoing investment in our proprietary e-commerce technology continues to improve our online experience. We are focused on offering customers inspiring content and dynamic tools to assist with design projects and AI is accelerating these efforts. We see many opportunities for our business from developments in AI, and we believe our leadership in this area will be yet another competitive advantage.

此外，我們對專有電子商務技術的持續投資持續改善我們的線上體驗。我們專注於為客戶提供鼓舞人心的內容和動態工具來協助設計項目，而人工智慧正在加速這些努力。我們從人工智慧的發展中看到了我們業務的許多機會，我們相信我們在這一領域的領導地位將成為另一個競爭優勢。

As focused as we are on our digital and e-commerce capabilities, we remain passionate about our best-in-class retail business. We continue to improve our in-store experiences with inspirational products and next-level design services. I truly believe our teams are the best in the industry. And our continued retail optimization efforts have transformed our fleet to be positioned in the most profitable, inspiring and strategic locations.

儘管我們專注於數位和電子商務能力，但我們仍然對一流的零售業務充滿熱情。我們繼續透過鼓舞人心的產品和更高水準的設計服務來改善我們的店內體驗。我堅信我們的團隊是業界最好的。我們持續的零售優化工作已將我們的車隊定位在最有利可圖、最鼓舞人心和最具戰略意義的地點。

On the sustainability front, in Q4, we are proud to be the only home furnishings retailer included in the 2023 Dow Jones Sustainability North America Index. And we started 2024 by being named one of Barron's 100 most sustainable companies. Our commitment to value is embedded in our company strategy, and we are proud of our recognition as a leader in sustainable home furnishings.

在永續發展方面，第四季度，我們很榮幸成為唯一入選 2023 年道瓊北美永續指數的家居用品零售商。 2024 年伊始，我們被《巴倫周刊》評為 100 家最具永續發展能力的公司之一。我們對價值的承諾融入了我們的公司策略，我們為自己被認可為永續家居裝飾領域的領導者而感到自豪。

Now I'd like to spend a few minutes talking about our brands. Pottery Barn ran a negative 9.6% comp in Q4 and ran a negative 3.8% on a 2-year basis and positive 38.1% on a 4-year basis. The comp improved sequentially from Q3 but still ran negative due to the pullback in consumer spending and furniture.

現在我想花幾分鐘談談我們的品牌。 Pottery Barn 在第四季的綜合收益為負 9.6%，以 2 年計算為負值 3.8%，以 4 年計算為正值 38.1%。該公司的業績較第三季有所改善，但由於消費者支出和家具的回落，仍出現負值。

During the holiday season, we saw strength in seasonal decor, entertaining and home textiles. The brand experienced a strong customer response over the Black Friday, Cyber Monday period, and we continue to reduce discounting and strengthen our merchandise margins. The brand benefited from a Q4 launch of the Pottery Barn mobile shopping and design app. This new app allows customers to shop full room designs, share their favorite products and connect with a design expert all through the convenience of their phone or tablet.

在節日期間，我們看到了季節性裝飾、娛樂和家用紡織品的強大。該品牌在黑色星期五和網路星期一期間得到了強烈的客戶反響，我們繼續減少折扣並提高我們的商品利潤。該品牌受益於第四季度推出的 Pottery Barn 行動購物和設計應用程式。這款新應用程式讓客戶可以透過手機或平板電腦方便地購買整個房間的設計、分享他們最喜歡的產品並與設計專家聯繫。

We anticipate the continued customer adoption of this app will drive conversion for Pottery Barn in 2024 and beyond. As we launch our exclusive spring product collections, we're seeing continued strength in fashion bedding, home furnishings and botanicals. Customers are continuing to gravitate towards easy updates with color, prints and pattern.

我們預計客戶對該應用程式的持續採用將在 2024 年及以後推動 Pottery Barn 的轉換。當我們推出獨家春季產品系列時，我們看到時尚寢具、家居用品和植物產品的持續強勁勢頭。客戶繼續傾向於顏色、印花和圖案的輕鬆更新。

The Pottery Barn children business ran a negative 2.5% comp in Q4 and was 1.5% positive on a 2-year basis and 21.1% positive on a 4-year basis. We continue to be focused on delivering compelling innovation and evolving the customer experience, and we are pleased to see improvement in the comp. Our baby business continued to be very strong and represents a sizable opportunity. We have been delivering growth in registry with our curated assortment, easy-to-use mobile app and in-store baby experts.

Pottery Barn 兒童業務在第四季的年增率為 2.5%，兩年年增 1.5%，四年年增 21.1%。我們繼續專注於提供引人注目的創新和發展客戶體驗，我們很高興看到競爭的改善。我們的嬰兒業務仍然非常強勁，並代表著巨大的機會。我們一直透過精選的產品組合、易於使用的行動應用程式和店內嬰兒專家來實現登記數量的增長。

We've also introduced new products that are both high in quality and innovation, such as our dream deluxe power swivel recliner with heat and massage. Also, we're proud of our collaborations, and we just launched (inaudible), who is making her debut line for baby with whimsical design and keepsake quality. Also in Q4, we saw a strong consumer response to our expanded seasonal offerings that range from baby's first Christmas to Grinch-themed betting for teens. We saw customers return to us for Valentine's Day and Easter with a strong response to our new collaborations, including an expanded collection of Hello Kitty. We're also seeing a particularly strong trend with our NFL offering in teens. And finally, we're seeing strength in nursery furniture, a purchase that is less dependent on new home sales.

我們還推出了高品質和創新的新產品，例如我們夢想中的加熱和按摩功能的豪華電動旋轉躺椅。此外，我們為我們的合作感到自豪，我們剛剛推出（聽不清楚），她正在製作她的首個嬰兒系列，具有異想天開的設計和紀念品品質。同樣在第四季度，我們看到消費者對我們擴大的季節性產品反應強烈，這些產品範圍從嬰兒的第一個聖誕節到青少年的格林奇主題投注。我們看到客戶在情人節和復活節回到我們這裡，對我們的新合作（包括擴展的 Hello Kitty 系列）做出了強烈反響。我們也發現 NFL 在青少年中呈現出特別強勁的趨勢。最後，我們看到了苗圃家具的強勁勢頭，這種購買不太依賴新屋銷售。

Moving to West Elm. West Elm is the brand that has been the most impacted by the consumer pullback in furniture. In Q4, West Elm ran a negative 15.3% and was negative 26% on a 2-year basis and positive 17.5% on a 4-year basis. However, what I'm excited about are our new product sales from this year's holiday assortment, which has strong growth to last year across all categories. The customers responded positively to fresh designs in furniture, textiles and decorative accessories. We also saw strong sales in holiday decor. And as we move into 2024, newness continues to accelerate and is performing well.

搬到西榆樹。 West Elm 是受家具消費下滑影響最大的品牌。第四季度，West Elm 的業績為負 15.3%，以兩年計算為負 26%，以四年計算為正 17.5%。然而，令我興奮的是我們今年假期系列的新產品銷售，所有類別的銷售比去年都有強勁成長。客戶對家具、紡織品和裝飾配件的新鮮設計反應積極。我們還看到節日裝飾的強勁銷售。隨著我們進入 2024 年，新鮮事物不斷加速並且表現良好。

Given these positive trends in newness, we continue to see a sizable opportunity in West Elm as it rebalances more inventory into these new products. The Williams-Sonoma brand ran a positive 1.6% comp in Q4. On a 2-year basis, the brand was negative 0.9% and was positive 29.8% on a 4-year basis. In Q4, the Williams-Sonoma Kitchen business ran a positive comp for the third consecutive quarter, and our Williams-Sonoma home business meaningfully improved.

鑑於新產品的這些積極趨勢，我們繼續在 West Elm 中看到相當大的機會，因為它將更多庫存重新平衡到這些新產品中。 Williams-Sonoma 品牌第四季的淨利潤為 1.6%。以 2 年為基礎，品牌為負 0.9%，以 4 年為基礎，為正 29.8%。第四季度，威廉斯-索諾瑪廚房業務連續第三個季度實現積極業績成長，我們的威廉斯-索諾瑪家庭業務也顯著改善。

Retail has been very strong, with inspiring in-store events and dramatically improved in stocks. Our seasonal categories grew double digits and we saw strength in core businesses like cookware and bakeware, as customers gravitated towards gifting and entertaining at home. Throughout the quarter, collaborations like our Cookware partnership with GreenPan and Stanley Tucci and the launch of a partnership with one of Netflix most watched shows, Bridgerton, continue to drive sales, buzz and new customer acquisition.

零售業一直非常強勁，店內活動鼓舞人心，庫存也大幅改善。我們的季節性類別成長了兩位數，我們看到了炊具和烘焙用具等核心業務的實力，因為客戶傾向於送禮和在家招待。在整個季度，我們與 GreenPan 和 Stanley Tucci 的 Cookware 合作夥伴關係以及與 Netflix 收視率最高的節目之一《Bridgerton》建立合作夥伴關係等合作繼續推動銷售、熱度和新客戶的獲取。

Now I would like to update you on our other initiatives. Business-to-business ended the year strong with Q4 at positive 5%, bringing the total year to a positive 1%, coming in just under $1 billion. The contract business exceeded expectations at positive 31% on the year, fueled by continued strength in the hospitality and residential sectors along with early traction in developing segments such as health care, gaming and senior living. Flagship projects in the back half of the year range from providing furnishings from medical office providers across the country as well as entertainment venues like Dave & Buster's.

現在我想向您介紹我們其他舉措的最新情況。 B2B 業務強勁，第四季成長 5%，全年成長 1%，營收接近 10 億美元。由於酒店和住宅行業的持續強勁，以及醫療保健、博彩和老年生活等發展中領域的早期牽引力，今年合約業務增長了 31%，超出了預期。下半年的旗艦項目包括提供全國各地醫療辦公室供應商的家具以及 Dave & Buster's 等娛樂場所。

Our B2B team also provided guest room furniture for the new Fontainebleau hotel that recently opened in Vegas. Now I'd like to talk about our global business. While macroeconomic pressures continue to affect our global business, we are pleased with our performance in India, Mexico and Canada. In India, we are seeing growth from strong marketing and brand awareness campaigns across the brands with a high penetration of our Design Crew business. In Mexico, the market continues to show strength driven by improved in-stocks and a strong holiday season. The Canada business continues to build momentum, fueled by our commitment to enhance the customer experience, both online and in retail.

我們的 B2B 團隊也為最近在拉斯維加斯開幕的新楓丹白露酒店提供客房家具。現在我想談談我們的全球業務。儘管宏觀經濟壓力繼續影響我們的全球業務，但我們對印度、墨西哥和加拿大的表現感到滿意。在印度，我們看到各個品牌強大的行銷和品牌知名度活動帶來的成長，其中 Design Crew 業務的滲透率很高。在墨西哥，由於庫存改善和假日季節強勁，市場持續表現強勁。在我們致力於增強線上和零售客戶體驗的推動下，加拿大業務繼續發展勢頭。

Our digital initiatives in the Canadian market continue to gain new customers and drive results for our brands. And we are pleased with the initial positive response to the recent launches of Rejuvenation, Mark and Graham and Williams-Sonoma Home in Canada. As we continue to expand our omnichannel presence around the globe, India, Mexico and Canada remain our key strategic growth markets.

我們在加拿大市場的數位化舉措不斷贏得新客戶並為我們的品牌帶來成果。我們對最近在加拿大推出的 Rejuvenation、Mark and Graham 和 Williams-Sonoma Home 獲得的初步積極反應感到高興。隨著我們繼續在全球擴大全通路業務，印度、墨西哥和加拿大仍然是我們的關鍵策略成長市場。

Lastly, I'd like to update you on our emerging brands. Rejuvenation delivered a strong quarter with a double-digit positive comp driven by success in our remodel product categories and new growth initiatives.

最後，我想向您介紹我們新興品牌的最新情況。在我們改造產品類別和新成長計畫的成功推動下，Rejuvenation 實現了強勁的季度業績，實現了兩位數的正淨利潤。

We continue to see strength in both consumer and B2B sales. Rejuvenation continues to establish itself as a destination for home projects by providing products with great function, high-quality and timeless design details. We're excited about the momentum in the brand and the growth potential in 2024 and beyond and believe Rejuvenation can be our next billion-dollar brand. Mark and Graham, our high-quality gifting business saw strong growth this year with a single -- high single-digit positive comp in the quarter.

我們繼續看到消費者和 B2B 銷售的強勁勢頭。 Rejuvenation 透過提供強大、高品質和永恆設計細節的產品，繼續將自己打造為家居項目的目的地。我們對該品牌的勢頭和 2024 年及以後的成長潛力感到興奮，並相信 Rejuvenation 可以成為我們下一個價值十億美元的品牌。馬克和格雷厄姆，我們的高品質禮品業務今年實現了強勁成長，本季實現了高個位數的正收益。

Our monogramming capabilities, coupled with unique high-quality gifts and the brand's curated online gift shops make it easy for customers to find a perfect gift. And finally, our startup GreenRow. We continue to gain momentum in this new brand, which utilizes sustainable materials and manufacturing practices to create colorful heirloom quality products. We remain optimistic about the potential of this brand and it's aesthetic. In 2024, we are planning to grow GreenRow with substantial increases in product assortment. These successful and exciting emerging brands demonstrate our ability to develop new businesses that expand our portfolio and address white space in the market.

我們的字母組合功能，加上獨特的高品質禮品和品牌精心策劃的線上禮品店，讓客戶可以輕鬆找到完美的禮物。最後是我們的新創公司 GreenRow。我們繼續在這個新品牌中獲得動力，該品牌利用永續材料和製造實踐來創造色彩繽紛的傳家寶優質產品。我們對這個品牌的潛力及其美學仍然持樂觀態度。 2024 年，我們計劃透過大幅增加產品種類來發展 GreenRow。這些成功且令人興奮的新興品牌展示了我們開發新業務、擴大我們的產品組合併解決市場空白的能力。

In summary, we're extremely proud of our accomplishments and financial results this year. We outperformed in 2023 despite the slowest housing market in several decades and massive geopolitical unrest. Although this pressured our top line trend, we stayed focused on full price selling, supply chain efficiencies and best-in-class customer service. We have transformed our business model, and as a result, we delivered an operating margin well above our guidance and well ahead for pre-pandemic operating margin.

總之，我們對今年的成就和財務表現感到非常自豪。儘管房地產市場出現幾十年來最緩慢的成長且地緣政治動盪，但我們在 2023 年的表現仍優於大盤。儘管這給我們的營收趨勢帶來了壓力，但我們仍然專注於全價銷售、供應鏈效率和一流的客戶服務。我們已經改變了我們的業務模式，因此，我們的營業利潤率遠高於我們的指導，並且遠遠領先於疫情前的營業利潤率。

We have a powerful portfolio of brands serving a range of categories, aesthetics and life stages, and we have built a strong omnichannel platform and infrastructure, which positions us well for the next stage of growth. It is early, but our reads on Q1 is strong, and we are optimistic about the opportunities that exist ahead.

我們擁有強大的品牌組合，服務於一系列品類、美學和生活階段，並且我們建立了強大的全通路平台和基礎設施，這為我們下一階段的成長奠定了良好的基礎。現在還為時過早，但我們對第一季的判斷很強勁，並且我們對未來存在的機會感到樂觀。

With that, I'll turn it over to Jeff to walk you through the numbers and our outlook in more detail.

接下來，我將把它交給傑夫，讓他更詳細地介紹這些數字和我們的前景。

Thank you, Laura, and good morning, everyone. As Laura said, we're pleased to deliver a strong finish to fiscal year '23 with Q4 and full year '23 earnings significantly exceeding expectations. We delivered these earnings despite a challenging backdrop for home furnishings, pressuring our top line. Our strong profitability in this environment demonstrates the durability of our operating margin. Our results once again reinforced the themes we consistently communicated in 2023.

謝謝勞拉，大家早安。正如 Laura 所說，我們很高興為 23 財年帶來強勁的業績，第四季和 23 財年全年收益顯著超出預期。儘管家居用品行業充滿挑戰，給我們的營收帶來壓力，但我們還是實現了這些盈利。在這種環境下，我們強勁的獲利能力證明了我們營業利潤率的持久性。我們的結果再次強化了我們在 2023 年一貫傳達的主題。

First, our steadfast commitment to maintain price integrity and not run site-wide promotions. Second, our first half supply chain cost pressures became tailwinds in the second half. And third, our discipline to control costs and manage inventory levels. Given the strength of our earnings through this challenging period for home furnishings, we're confident we can deliver long-term growth and even stronger earnings as the customer shifts back to home.

首先，我們堅定地致力於保持價格完整性，並且不進行全站促銷。其次，我們上半年的供應鏈成本壓力變成了下半年的順風車。第三，我們控製成本和管理庫存水準的紀律。考慮到我們在家居裝飾這一充滿挑戰的時期的盈利實力，我們有信心隨著客戶返回家鄉，我們能夠實現長期增長，甚至更強勁的盈利。

Now let's dive into the numbers. I'll start with our Q4 results, followed by our full fiscal year '23 results, then provide guidance for '24. Q4 net revenues finished at $2.28 billion. Our revenues came in at the high end of our expectations, driven by strong holiday performance across our portfolio of brands, partially offset by ongoing customer hesitancy towards big ticket expenditures.

現在讓我們深入研究數字。我將從我們第四季度的業績開始，然後是 23 年整個財年的業績，然後為 24 財年提供指導。第四季淨收入為 22.8 億美元。我們的收入達到了我們預期的上限，這得益於我們品牌組合的強勁假期表現，但部分被客戶對大額支出的持續猶豫所抵消。

During the quarter, we continued our commitment to maintain price integrity and we reduced our overall level of promotions. Our Q4 comps came in at negative 6.8%, with our 2-year comp at negative 7.4% and our full year comp to 2019 at plus 29.1%. From a cadence perspective, our comps reflect a strong Black Friday to Christmas holiday period, [bookended] by inconsistent and choppy sales on both ends.

本季度，我們繼續致力於保持價格完整性，並降低了整體促銷水平。我們的第四季比較為負 6.8%，兩年期比較為負 7.4%，截至 2019 年全年比較為正 29.1%。從節奏的角度來看，我們的比較反映了黑色星期五到聖誕節假期期間的強勁表現，但兩端的銷售情況不一致且波動較大。

Moving down the income statement. Q4 gross margin improved 480 basis points over last year to 46% as higher selling margins more than offset the impact of higher occupancy costs. Q4 selling margin at 55.1% were 560 basis points higher than last year, reflecting the full impact to our profitability of the supply chain tailwinds we've been guiding for several quarters.

將損益表向下移動。第四季的毛利率比去年提高了 480 個基點，達到 46%，因為銷售利潤率的提高足以抵消入住成本上升的影響。第四季銷售利潤率為 55.1%，比去年高出 560 個基點，反映出我們幾個季度以來一直引導的供應鏈順風對我們獲利能力的全面影響。

Our higher Q4 selling margins were driven by both higher merchandise margins, and lower costs from supply chain efficiencies. Q4 merchandise margins contributed about half the increase in selling margins, driven by lower input costs, and our focus on full price selling. The balance sheet improvement came directly from supply chain efficiencies, which drove an improved customer experience and lower costs. We're proud to see our focus on execution and investment in supply chain paying off. Key metrics, including out-of-market shipping, multiple deliveries per order, returns, accommodations, damages and replacements are all performing at pre-pandemic levels, if not better.

我們第四季較高的銷售利潤率是由較高的商品利潤率和供應鏈效率降低的成本所推動的。由於投入成本下降以及我們對全價銷售的關注，第四季度的商品利潤貢獻了銷售利潤成長的一半左右。資產負債表的改善直接來自供應鏈效率，這推動了客戶體驗的改善和成本的降低。我們很自豪地看到我們對供應鏈執行和投資的關注得到了回報。包括市場外運輸、每個訂單多次交付、退貨、住宿、損壞和更換在內的關鍵指標都達到了大流行前的水平，甚至更好。

Our higher Q4 selling margins more than offset the 2% growth in Q4 occupancy costs to $208 million or 9.1% of net revenues, up 80 basis points from last year. Turning now to SG&A. Our Q4 SG&A expense of $591 million, grew 13% and ran at 25.9% of revenues, deleveraging 460 basis points. As a reminder, our Q4 '22 SG&A results benefited from favorable items that we guided would not repeat in Q4 '23. Excluding the favorable items from last year, our SG&A dollars decreased 4%. Q4 employment was 300 basis points higher year-over-year, driven by higher performance-based incentive compensation in fiscal year '23 than last year.

我們第四季更高的銷售利潤抵銷了第四季度入住成本 2% 的成長，達到 2.08 億美元，佔淨收入的 9.1%，比去年增長 80 個基點。現在轉向SG&A。我們第四季的 SG&A 支出為 5.91 億美元，成長了 13%，佔營收的 25.9%，去槓桿化了 460 個基點。提醒一下，我們的 22 年第 4 季 SG&A 業績受益於我們指導的有利項目，而這些項目在 23 年第 4 季不會重複。排除去年的優惠項目，我們的 SG&A 美元下降了 4%。由於 23 財年基於績效的激勵薪酬高於去年，第四季就業人數較去年同期成長 300 個基點。

In Q4, we continued to manage variable employment costs in accordance with top line trends. Q4 advertising expense was 60 basis points higher year-over-year as we took advantage of opportunities to invest into higher levels of advertising spend. As Laura mentioned, we continue to increase our spend as we are seeing very effective returns on this investment. Our ability to invest in these opportunities is an example of the competitive advantage of our agile, performance-driven marketing organization. our in-house capabilities, first-party data and multi-brand platform continue to drive efficient advertising spend.

第四季度，我們繼續根據營收趨勢管理可變的就業成本。由於我們抓住機會投資更高水準的廣告支出，第四季度廣告支出較去年同期成長 60 個基點。正如勞拉所提到的，我們繼續增加支出，因為我們看到這項投資非常有效的回報。我們投資這些機會的能力是我們敏捷、績效驅動的行銷組織的競爭優勢的一個例子。我們的內部能力、第一方數據和多品牌平台持續推動高效率的廣告支出。

Q4 general expenses drove the balance of the increase as we lapped a favorable insurance settlement received in fiscal year '22. On the bottom line, our Q4 earnings significantly exceeded expectations. Q4 operating income came in at $458 million and operating margin at 20.1%, 20 basis points above last year, with Q4 diluted earnings per share of $5.44.

由於我們在 22 財年收到了有利的保險和解金，第四季度的一般費用推動了成長的平衡。總而言之，我們第四季的獲利大大超出了預期。第四季營業收入為 4.58 億美元，營業利潤率為 20.1%，比去年同期成長 20 個基點，第四季攤薄後每股收益為 5.44 美元。

Turning now to our full year results, which again exceeded expectations. Full year net revenues finished at $7.75 billion. Our full year revenues reflect a larger home furnishings backdrop and our commitment to maintain price integrity even if it meant for growing some revenues in the short term.

現在轉向我們的全年業績，再次超越預期。全年淨收入達 77.5 億美元。我們的全年收入反映了更大的家居背景，以及我們對保持價格完整性的承諾，即使這意味著在短期內增加一些收入。

Our full year comp ran down 9.9% with our 2-year comp at negative 3.4%, and our 4-year comp to 2019 at plus 35.6%. Full year gross margin ended at 42.7%, a 30 basis point improvement over last year as our first half supply chain headwinds turned into even stronger tailwinds in the back half. Full year selling margins at 53.2% were 170 basis points over last year and our highest ever selling margin rate driven by a nearly equal mix of higher merchandise margins and supply chain efficiency, these higher selling margins more than offset the 4% increase in our full year occupancy costs to $814 million.

我們的全年比較下降了 9.9%，其中 2 年比較為負 3.4%，截至 2019 年的 4 年比較為正 35.6%。全年毛利率達到 42.7%，比去年提高 30 個基點，因為我們上半年的供應鏈逆風在下半年變成了更強勁的順風。全年銷售利潤率為53.2%，比去年提高了170 個基點，我們有史以來最高的銷售利潤率是由更高的商品利潤率和供應鏈效率幾乎相等的組合推動的，這些更高的銷售利潤率遠遠抵銷了我們全年銷售利潤率4% 的成長。年佔用成本高達 8.14 億美元。

Full year SG&A expense decreased 5.8% to $2.04 billion. This decrease was driven by employment reductions taken in Q1 and Q2, our management of variable employment in line with top line trends and a 20 basis point reduction in advertising on the full year.

全年 SG&A 費用下降 5.8% 至 20.4 億美元。這一下降是由於第一季和第二季的就業減少、我們根據營收趨勢對可變就業進行管理以及全年廣告支出減少 20 個基點所致。

Full year SG&A deleverage of 140 basis points was primarily driven by lapping the favorable items recognized in Q4 '22 that I discussed earlier. On the bottom line, full year operating income finished at $1.27 billion, and operating margin at 16.4%, significantly above our pre-COVID levels and the 15% operating margin floor we established at the start of the year. Full year diluted earnings per share ended at $14.85.

全年 SG&A 去槓桿化 140 個基點主要是由於我之前討論過的 22 年第 4 季確認的有利項目的推動。整體而言，全年營業收入為 12.7 億美元，營業利潤率為 16.4%，顯著高於新冠疫情前的水平以及我們年初設定的 15% 營業利潤率下限。全年稀釋後每股收益為 14.85 美元。

On the balance sheet, we ended the year with a cash balance of $1.26 billion with no debt outstanding. This was after we invested $188 million in capital expenditures supporting our long-term growth, and we returned over $545 million to our shareholders through share repurchases and quarterly dividends. Year-end merchandise inventories stood at $1.25 billion, down 14.4% to last year. At these levels, we are well positioned to maintain our price integrity as we proactively managed our inventory levels in line with our top line trends.

在資產負債表上，我們年底的現金餘額為 12.6 億美元，沒有未償債務。在此之前，我們投資了 1.88 億美元用於支持長期成長的資本支出，並透過股票回購和季度股息向股東返還了超過 5.45 億美元。年末商品庫存為12.5億美元，比去年下降14.4%。在這些水準上，我們有能力維持價格完整性，因為我們根據營收趨勢積極管理庫存水準。

We generated a record level of free cash flow in 2023 at $1.49 billion, driven by the strength of our earnings, proactive inventory management and financial discipline. Speaking of financial discipline, a prime example is our fiscal year '23 return on invested capital of 45%. This is among the best in the retail industry.

在我們強勁的獲利、積極的庫存管理和財務紀律的推動下，我們在 2023 年創造了創紀錄的自由現金流，達到 14.9 億美元。說到財務紀律，一個典型的例子是我們 23 財年的投資資本報酬率為 45%。這是零售業中最好的。

Summing up our '23 results, we're proud to have delivered earnings substantially exceeding expectations. As Laura said, these results reflect the efforts of the entire team at Williams-Sonoma Inc. And I'd like to thank our talented team for delivering these outstanding results in a challenging environment.

總結我們 23 年的業績，我們很自豪我們的利潤大大超出了預期。正如勞拉所說，這些成果反映了威廉斯-索諾瑪公司整個團隊的努力。我要感謝我們才華橫溢的團隊在充滿挑戰的環境中取得了這些出色的成果。

Now let's turn to our '24 outlook. First, let me point out that 2024 is a 53-week year for Williams-Sonoma Inc. So the fourth quarter will consist of 14 weeks. We will report comps on a 53-week versus 53-week comparable basis. All other year-over-year compares will be 53 weeks versus 52 weeks.

現在讓我們轉向 24 世紀的展望。首先，我要指出，對於 Williams-Sonoma Inc 來說，2024 年是 53 週的一年。因此第四季將包括 14 週。我們將在 53 週與 53 週可比較的基礎上報告比較情況。所有其他同比比較將分別為 53 週和 52 週。

We anticipate the additional week will contribute 150 basis points to revenue growth and 10 basis points to operating margins, both of which are embedded in our guidance. We anticipate 2024 will be a year of continued macroeconomic uncertainty. Lower interest rates could spur the housing market and shift consumer spending back to home, but timing is hard to predict.

我們預計額外的一周將為收入成長貢獻 150 個基點，為營業利潤貢獻 10 個基點，這兩者都包含在我們的指導中。我們預計 2024 年將是宏觀經濟持續不確定的一年。較低的利率可能會刺激房地產市場並將消費者支出轉移回國內，但時機很難預測。

And there is also the election and global geopolitical tension. With this in mind, we are providing a wide range of guidance for '24. '24 net revenues are expected to be in the range of down 3% to up 3% with comps between down 4.5% to up 1.5% and operating margins between 16.5% and 16.8%. On the top line, we anticipate sequential improvement across the year. With the first half tougher than the second half, as our top line comparisons get easier. On the bottom line, we expect our supply chain tailwinds will continue through at least the first half of '24, but will be partially offset by higher advertising spend. In the back half, we anticipate our operating margins will be in line with '23 results.

還有選舉和全球地緣政治緊張局勢。考慮到這一點，我們為 '24 提供了廣泛的指導。 '24 淨收入預計將在下降 3% 至增長 3% 之間，而同期比較將在下降 4.5% 至增長 1.5% 之間，營業利潤率將在 16.5% 至 16.8% 之間。總體而言，我們預計全年將持續改善。由於上半場比下半場更艱難，因此我們的收入比較變得更容易。總而言之，我們預計我們的供應鏈順風至少將持續到 2024 年上半年，但將被廣告支出增加部分抵消。下半年，我們預計我們的營業利潤率將與 23 年的結果一致。

Our capital allocation plans for '24 prioritize funding our business operations and investing in long-term growth. We expect to spend $225 million in capital expenditures to invest in the long-term growth of our business. 75% of this capital spend will be dedicated to drive our e-commerce leadership and supply chain efficiency. We expect to continue to return excess cash to our shareholders in the form of increased quarterly dividend payouts and ongoing share repurchases. For dividends, today, we announced an increase in our quarterly dividend payout of 26% or $0.23 to $1.13 per share. Fiscal year '24 will be the 15th consecutive year of increased dividend payouts, which we are both proud of and remain committed to.

我們 24 年的資本分配計劃優先為我們的業務運營提供資金並投資於長期成長。我們預計將花費 2.25 億美元的資本支出來投資於我們業務的長期成長。 75% 的資本支出將專門用於推動我們的電子商務領導地位和供應鏈效率。我們預計將繼續以增加季度股利支付和持續股票回購的形式向股東返還多餘現金。對於股息，今天，我們宣布將季度股息支付增加 26%，即每股 0.23 美元至 1.13 美元。 24 財年將是連續第 15 年增加股利支付，我們對此感到自豪並繼續致力於實現這一目標。

For share repurchases, today, we also announced our Board has approved a new $1 billion share repurchase authorization, replacing previous authorizations and under which we will opportunistically repurchase our stock to deliver returns to our shareholders. Combined, our dividend increase and new share repurchase authorization continue our commitment to return excess cash to our shareholders.

對於股票回購，今天，我們也宣布董事會已批准一項新的 10 億美元股票回購授權，取代先前的授權，根據該授權，我們將擇機回購我們的股票，為股東帶來回報。結合起來，我們的股利增加和新股回購授權繼續我們向股東返還多餘現金的承諾。

In fact, we've returned over $3.8 billion to our shareholders over the last 6 years. As we look further into the future beyond '24, we are reiterating our long-term top line guidance of mid- to high single-digit revenue growth. And in the long term, we now believe we can sustain operating margins in the mid to high teens.

事實上，過去 6 年我們已向股東返還超過 38 億美元。當我們進一步展望 24 年後的未來時，我們重申了中高個位數收入成長的長期營收指引。從長遠來看，我們現在相信我們可以將營業利潤率維持在中高點。

We are confident that we will continue to outperform our peers and deliver shareholder growth for these reasons. Our ability to gain market share in the fragmented 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.

由於這些原因，我們相信我們將繼續超越同業並實現股東成長。我們在分散的家居產業中獲得市場份額的能力、我們內部專有設計的實力、我們數位優先而非純數位通路策略的競爭優勢、我們成長計畫的持續優勢以及我們的彈性堡壘資產負債表。

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

接下來，我將開始提問。

(Operator Instructions) Our first question will come from the line of Steven Zaccone with Citi.

（操作員說明）我們的第一個問題將來自花旗銀行的 Steven Zaccone。

Congrats on the strong margin execution here in a tough environment. So Jeff, first question for you. Can you talk a bit more about the margin assumptions in the 2024 guide in more detail. You gave the commentary about operating margin in the back half. Can you talk about gross margin in particular? How does that look on the cadence of the year?

祝賀您在艱難的環境中實現了強勁的利潤執行。傑夫，第一個問題給你。您能否更詳細地談談 2024 年指南中的利潤率假設。您在後半段發表了有關營業利潤率的評論。能具體談談毛利率嗎？從今年的節奏來看，情況如何？

Steve. Yes, on our gross margin outlook and our EBIT margin outlook, as you know, we don't guide the individual line items. We provide top line guidance and bottom line operating margin guidance. And the reason why it gives us the flexibility to react as we see trends evolve in the business and the different levers we can pull along the way. And as you've seen, as we did in '23, we know the levers to pull to deliver results. We see continued strength in our operating margin.

史蒂夫.是的，就我們的毛利率前景和息稅前利潤率前景而言，如您所知，我們不會對單一項目進行指導。我們提供頂線指導和底線營業利潤率指導。這也是為什麼當我們看到業務趨勢的發展以及我們可以在過程中使用的不同槓桿時，它使我們能夠靈活地做出反應。正如您所看到的，就像我們在 23 年所做的那樣，我們知道要採取哪些槓桿才能取得成果。我們看到我們的營業利潤率持續強勁。

And as we guided today, we see it landing between 16.5% to 16.8% on the year. We do see that the supply chain tailwinds that we've been seeing in the back half of '23 will continue into the front half of '24 but will be offset by some additional advertising expenditures as we talked about, we did in -- Q4 of '23. But overall, we're very confident in our operating margin and looking forward to delivering these results.

正如我們今天的指導，我們預計今年的成長率將在 16.5% 至 16.8% 之間。我們確實看到，我們在 23 年下半年看到的供應鏈順風將持續到 24 年上半年，但正如我們所談到的，我們在第四季度所做的一些額外的廣告支出將被抵消' 23。但總的來說，我們對我們的營業利潤率非常有信心，並期待著取得這些成果。

Okay. Great. Then second question for you, Laura. I was hoping to get more detail on the West Elm turnaround. You talked about some newness, and that's doing well. But how long do you expect the turnaround to take? And if we think about the performance of that brand relative to the overall guidance for the company, would you expect West Elm to still underperform?

好的。偉大的。那麼第二個問題要問你，蘿拉。我希望能獲得西榆樹扭虧為盈的更多細節。你談到了一些新鮮事，效果很好。但您預計這種轉變需要多長時間？如果我們考慮品牌相對於公司整體指導的表現，您是否認為 West Elm 仍表現不佳？

Yes. I'm so excited about West Elm. I've had a chance to see all of the product that's coming in this year and their strategies. And I think it's a very clear, exciting growth story again for us. I think in terms of timing, it's always hard to predict exactly when things will go. But we are seeing, as I said, really strong results, not just in the holiday seasonal decor but the new product offer that's core. And the new design language that we've brought out, the new modern forms, we are building back our nonfurniture business, which drives customer engagement and also new customer acquisition and is very relevant and important for UPTs and repeat purchases. So that is on its way.

是的。我對西榆樹感到非常興奮。我有機會看到了今年推出的所有產品及其策略。我認為這對我們來說又是一個非常清晰、令人興奮的成長故事。我認為就時間而言，總是很難準確預測事情何時會發生。但正如我所說，我們看到了非常強勁的成果，不僅在節日裝飾方面，而且在核心的新產品供應方面。我們推出的新設計語言、新的現代形式，正在重建我們的非家具業務，這推動了客戶參與度和新客戶獲取，對於 UPT 和重複購買非常相關和重要。所以這一切正在路上。

You're going to see that continue to grow through the year. And then also now that we have success on some of these furniture items, we know that the time line on when a furniture bestseller will be relevant is a lot longer than if you're a fashion apparel person. So we can then buy into it with confidence versus now our newness, although very high over last year, is -- it's just not a big enough percent of the total. So as we buy back into these winners and they compound through the year, that's when we expect to see then hit the total top line in a meaningful way.

你會看到這一數字在這一年中繼續增長。而且現在我們在其中一些家具產品上取得了成功，我們知道家具暢銷書的相關時間線比您是時尚服裝人士要長得多。因此，我們可以充滿信心地購買它，而現在我們的新鮮度雖然比去年非常高，但它在總數中所佔的百分比還不夠大。因此，當我們回購這些贏家並且它們在一年中實現複合成長時，我們預計會以有意義的方式達到總營收。

Your next question comes from the line of Seth Basham with Wedbush Securities.

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

Congrats on another strong quarter. My first question is just thinking about the 2024 outlook. Obviously, a lot of uncertainty with the environment and your revenue growth guidance reflects that. But you guys have been very good at managing costs. And if we were to see revenue come in a bit below your guidance, would you still be able to hit that 16.5% operating margin target?

祝賀又一個強勁的季度。我的第一個問題只是思考 2024 年的前景。顯然，環境和您的收入成長指引的許多不確定性反映了這一點。但你們在管理成本方面非常擅長。如果我們看到收入略低於您的指導，您還能達到 16.5% 的營業利潤率目標嗎？

Yes. So simply to answer your question, even if revenues were to come a little bit lower, we're confident in our operating margin guidance. There's additional levers that we can pull within the business if that were to be the case. But our outlook is a little bit more positive. We think we're closer to the end of the down cycle in home furnishings rather than the beginning. And we're focused on delivering results in our business. And I really think that we have opportunities to continue to improve what we're doing, and there's more things that we can do to drive earnings throughout the year.

是的。因此，簡單地回答您的問題，即使收入略有下降，我們對營業利潤率指導也充滿信心。如果是這樣的話，我們可以在業務中使用額外的槓桿。但我們的前景更為樂觀。我們認為家居用品產業的下行週期已經接近結束，而不是開始。我們專注於在我們的業務中取得成果。我真的認為我們有機會繼續改進我們正在做的事情，並且我們可以做更多的事情來推動全年盈利。

That's helpful. And then secondly, it seems like there's been a little bit of a change in how you're approaching advertising. You're finding good opportunities to invest there. Can you give some more color there? And also, is that one of the levers you can pull if this top line doesn't play out the way you expect?

這很有幫助。其次，您對待廣告的方式似乎發生了一些變化。您正在那裡尋找投資的好機會。你能給那裡更多的顏色嗎？而且，如果這條頂線沒有按照您預期的方式發揮作用，這是您可以拉動的槓桿之一嗎？

It's not a difference in approach. It's that when we see more opportunity, we invest more. And so we want to invest in advertising if we're going to get paid back. So we are looking at this every day, every week, every brand, and we're so lucky to have a test-and-learn methodology where we can try something in one brand. And if it works, roll it. And if it doesn't work, shut it down.

這不是方法上的差異。當我們看到更多機會時，我們就會增加投資。因此，如果我們想要獲得回報，我們希望投資廣告。因此，我們每天、每週、每個品牌都在關注這個問題，我們很幸運能夠擁有一種測試和學習的方法，我們可以在一個品牌中嘗試一些東西。如果有效，就滾動它。如果不起作用，請將其關閉。

And so when we find something that works, you spend more, the ad cost then stays lower or it goes up with sales in tandem giving you more on the bottom line. We've done this for years. It's a little more complicated than it used to be when we just had the catalog because there's so many different things to invest in. And we're seeing a lot of opportunity in organic social now. And that is not paid. Now it helps to have paid social go along with organic social, but we're getting really good at pushing our content not just through our own channels, but into the whole social media world in a very effective way to get new customers into our brands.

因此，當我們找到有效的東西時，您會花費更多，廣告成本就會保持較低，或與銷售額同步上升，為您帶來更多利潤。我們這樣做已經很多年了。現在比我們剛有了目錄時要複雜一些，因為有很多不同的東西可以投資。而且我們現在在有機社交領域看到了很多機會。而且那是沒有報酬的。現在，付費社交與有機社交並駕齊驅是有幫助的，但我們非常擅長不僅透過我們自己的管道推送我們的內容，而且以非常有效的方式將我們的內容推向整個社交媒體世界，以吸引新客戶進入我們的品牌。

And so it's not just the ad cost spend, it's the creative spend that goes in building that incredible content like we did with Stanley Tucci, for example, which continues to be a really wonderful example of a successful collaboration that's working both in the short-term sales but also in bringing new customers to the brand. And so it's a great example of the kind of things that are changing, and they're really different from 10 years ago when those channels were not available to use.

因此，這不僅僅是廣告成本支出，而是用於建立令人難以置信的內容的創意支出，例如我們與Stanley Tucci 所做的那樣，這仍然是成功合作的一個非常好的例子，在短期內都發揮了作用。不僅是銷售，還為品牌帶來新客戶。因此，這是正在發生變化的一個很好的例子，它們與 10 年前（當時這些管道無法使用）確實不同。

Your next question comes from the line of Jonathan Matuszewski with Jefferies.

您的下一個問題來自 Jonathan Matuszewski 和 Jefferies 的對話。

Nice results. The first one is on B2B. Just curious how you're thinking about B2B in the context of your 2024 guide in terms of sales or comp? And relatedly, maybe if you could just update us on what you're doing to make that channel more profitable. It seems like you're doing a lot of good things on the consumer side to take costs out of the business in terms of less accommodations and damages, but curious, anything to make B2B more profitable? That's my first question.

不錯的結果。第一個是B2B。只是好奇您在 2024 年指南的背景下如何看待 B2B 的銷售或競爭？與此相關的是，也許您可以向我們介紹您正在採取哪些措施來提高該頻道的盈利能力。看起來你們在消費者方面做了很多好事，以減少住宿和損害等方式降低業務成本，但很好奇，有什麼可以讓 B2B 更有利可圖嗎？這是我的第一個問題。

Jonathan, we see B2B contributing about 100 basis points to our comp in '24, which is embedded in our guidance. Here's what's exciting. We're really optimistic about B2B growth as we look forward to '24. The business was up 1% overall in '23 with contract up 31%. And while the trade business has been more impacted by the slowed housing market, we've seen some recent improvement in that trend. However, we remain focused on accelerating our contract business, and we're really pleased with the momentum we're seeing. And here for us, it's really a growth story. Overall, B2B is slightly accretive to our operating margins. And we just see continued growth as we disrupt this $80 billion piece of our TAM.

喬納森，我們看到 B2B 為我們 24 年的業績貢獻了約 100 個基點，這已包含在我們的指導中。這就是令人興奮的事情。我們對 B2B 成長非常樂觀，因為我們期待 24 年。 2023 年，該業務總體增長了 1%，其中合約增長了 31%。儘管貿易業務受到房地產市場放緩的影響更大，但我們最近看到這種趨勢有所改善。然而，我們仍然專注於加速我們的合約業務，我們對所看到的勢頭感到非常滿意。對我們來說，這確實是一個成長故事。整體而言，B2B 略微增加了我們的營業利潤。當我們顛覆價值 800 億美元的 TAM 時，我們看到了持續的成長。

That's really helpful. And then just a quick follow-up on your store fleet. Just maybe update us on the mindset regarding store closures. What's embedded in the 2024 guide? Obviously, a lot of leases up for renewal.

這真的很有幫助。然後快速跟進您的商店團隊。也許只是向我們通報關閉商店的心態。 2024 年指南包含哪些內容？顯然，很多租約都需要續約。

Yes. So really exciting story in our retail stores because we're very successfully leaving certain stores in certain areas and moving to vibrant centers. A great example is Annapolis. I don't know if you've been there, but we moved our WS right next to Whole Foods which is a really different strategy than your traditional retail placement.

是的。我們的零售店發生了非常令人興奮的故事，因為我們非常成功地離開了某些地區的某些商店，搬到了充滿活力的中心。安納波利斯就是一個很好的例子。我不知道您是否去過那裡，但我們將 WS 搬到了 Whole Foods 旁邊，這與傳統的零售佈局完全不同。

And it's really -- it's up to pro forma. It's up to the previous store and the [4-wall] is much higher than our average. It's a really good case of where we work to the landlord to really build a killer store, and we're paying less and the financials are really strong and the store is great for the customers. And so that's what we continue to do as leases come up for renewal, there are amazing centers we're staying in, and we've been successful in reinvesting in the right things. So that if you're staying in the center, the stores look really fresh and also serve the customer in the way they want to be served, and there's new things than when we built stores 10 years ago, new businesses to fund, space allocation.

這確實是——這取決於準備考試。這取決於之前的商店，[4牆]比我們的平均水平高得多。這是一個非常好的案例，我們與房東合作，真正建立了一家殺手級商店，我們支付的費用更少，財務狀況非常強勁，而且這家商店對顧客來說非常好。因此，這就是我們在續租租約時繼續做的事情，我們住在一些令人驚嘆的中心，而且我們已經成功地對正確的事情進行了再投資。因此，如果你住在市中心，商店看起來真的很新鮮，也以顧客想要的方式為他們提供服務，而且比我們10 年前建商店時有新的東西，新的業務需要資助，空間分配。

And so across all of our brands, we're constantly looking at what's working, what's not working and how do we continue to optimize, but also keeping that beautiful inspiring store experience where you go in and we say the music plays, and you're excited to be there and you're inspired by the features, and we've got great salespeople who help you. And we're matching that also with very intuitive and helpful tech to help build these rooms, these houses.

因此，在我們所有的品牌中，我們不斷地研究哪些有效，哪些無效，以及我們如何繼續優化，同時保持那種美妙的鼓舞人心的商店體驗，當你走進去時，我們說音樂響起，你'很高興來到那裡，您會受到這些功能的啟發，我們有優秀的銷售人員為您提供幫助。我們還將其與非常直觀且有用的技術相匹配，以幫助建造這些房間、這些房屋。

And just while I'm talking about this, I really just -- during this time where people are buying less furniture, we've taken the time to really reinvest in how we take our design service to the next level because we know that they're dying to buy new houses. And when the market switches, we're going to be there with an advanced platform for design services that we can use and leverage in our stores and also online that I think is game changing.

就在我談論這個的時候，我真的只是——在人們購買家具減少的這段時間裡，我們花時間真正重新投資於如何將我們的設計服務提升到一個新的水平，因為我們知道他們急於買新房。當市場發生變化時，我們將提供一個先進的設計服務平台，我們可以在我們的商店和網路上使用和利用這個平台，我認為這正在改變遊戲規則。

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

你的下一個問題來自 Max Rakhlenko 和 TD Cowen 的對話。

Great. So first, Laura, can you just provide any more color on your comment that 1Q reads are strong. What brands are you seeing that in? And then just how are you thinking about what brands will lead the return back to growth over the coming quarters?

偉大的。首先，勞拉，您能否在您的評論中提供更多關於第一季閱讀量很強的信息。您在哪些品牌中看到了這一點？那麼您如何看待哪些品牌將在未來幾季引領經濟恢復成長？

Sure, Max. We really do have a strong lineup of opportunities in our portfolio of brands, and we're really confident in our outlook. Some examples of things that are working -- we're in a color trend phase, and we're seeing print and pattern and color sell across the brands actually. Easter is strong. That's good. It's early. So Jeff is telling me to be careful with this comment because when it's early, sometimes it ends a little differently than you expect but so far so good and even shifted.

當然，馬克斯。我們的品牌組合確實擁有強大的機會，而且我們對我們的前景充滿信心。一些有效的例子——我們正處於色彩趨勢階段，我們看到印花、圖案和色彩實際上在各個品牌中都很暢銷。復活節很強烈。那挺好的。現在還早。所以傑夫告訴我要小心這個評論，因為當它還很早的時候，有時它的結局會與你預期的有點不同，但到目前為止一切都很好，甚至發生了變化。

That tells you customers -- we saw Christmas decor be strong, too, Easter -- this is good for our brands. There's not a lot of people out there that serve in a quality way, the seasonal holidays. And we think they're wonderful. We love to decorate and entertain and show people how to do that across them. And for West Elm, that's been a business they haven't really gone after. So that's really upside for them. Easy updates, people, they may not be buying a house, but they might decide to redo one room. And we can see the effects of that on our sales.

這告訴你的顧客——我們看到聖誕節和復活節的裝飾也很強烈——這對我們的品牌有好處。季節性假期期間，提供優質服務的人並不多。我們認為它們很棒。我們喜歡裝飾和娛樂，並向人們展示如何在他們身上做到這一點。對 West Elm 來說，這並不是他們真正追求的業務。所以這對他們來說確實有好處。簡單的更新，人們，他們可能不會買房子，但他們可能會決定重做一個房間。我們可以看到這對我們銷售的影響。

And also, the projects I mentioned in my prepared remarks about rejuvenation. Bath and kitchen remodels are still happening, and we are getting more attention as someone who can help provide high-quality and unique products in those spaces. New furniture, we're seeing strong results in West Elm, as I mentioned, new forms, and that's very exciting. And then collaboration. So whether it's Tucci, I keep talking about Tucci, Colin King, LoveShackFancy, Sheila Bridges, [Elf]. I mean, we've got a wide range of these collaborations. And they're just -- they bring new customers in, and we have a great time with them. They help us think about new design language that we may not naturally design into.

還有我在準備好的關於復興的演講中提到的項目。浴室和廚房的改造仍在進行中，作為能夠幫助在這些空間提供高品質和獨特產品的人，我們越來越受到關注。新家具，正如我所提到的，我們在西榆樹看到了強勁的成果，新的形式，這是非常令人興奮的。然後是合作。所以無論是 Tucci，我一直在談論 Tucci、Colin King、LoveShackFancy、Sheila Bridges、[Elf]。我的意思是，我們進行了廣泛的合作。他們只是——他們帶來了新客戶，我們和他們一起度過了愉快的時光。它們幫助我們思考我們可能不會自然設計的新設計語言。

And all of that is really good for the teams and great for the customers. And then there's continued categories that we're pushing as a bigger percent of total and pulling back. And so without going on too long or giving away too much competitive information, we're seeing some pockets where we have a lot of upside. The other thing that's really important in all this that you guys got to realize is that we continue to reduce our promotional offering.

所有這些對團隊和客戶都非常有利。然後，我們繼續推動一些類別，使其佔總數的比例更大，然後又撤回。因此，在不花太多時間或透露太多競爭資訊的情況下，我們看到了一些有很大優勢的領域。你們必須意識到，在這一切中真正重要的另一件事是我們繼續減少促銷活動。

So at the same time that we're pushing this growth posture for this year, we are also absolutely determined to continue to pull back on promotions, which is a tricky thing, right? So we did it last year. You're going to see us continue to push it this year and balance the 2 out. We really believe strongly that long term, this is the right thing for our business. And we will take markdowns, and we will always try new things, and sometimes they don't work so you take a markdown, but we do not want to have up down pricing in our brands.

因此，在我們今年推動這種成長態勢的同時，我們也絕對決心繼續縮減促銷力度，這是一件棘手的事情，對吧？所以我們去年就這麼做了。你會看到我們今年繼續推動它並平衡兩者。我們堅信，從長遠來看，這對我們的業務來說是正確的事情。我們會降價，我們總是會嘗試新事物，有時它們不起作用，所以你會降價，但我們不希望我們的品牌定價過高。

Got it. That's very helpful. And so the big update, I think, is the new long-term EBIT margin outlook. So I'm just curious, what are you seeing now that gives you confidence to raise it? And then as we think about post 2024, is that going to be more on gross margin or SG&A? Just curious where you see the big opportunities ahead to continue to march forward.

知道了。這非常有幫助。因此，我認為最大的更新是新的長期息稅前利潤率前景。所以我很好奇，你現在看到了什麼讓你有信心提出這個問題？然後，當我們考慮 2024 年後，這會更多地取決於毛利率還是 SG&A？只是好奇您在哪裡看到了繼續前進的巨大機會。

I think the way we think about it is at the start of '23, we established a 15% operating margin floor. And then year-end results, we delivered a 16.4% operating margin. And this year, we're guiding 16.5% to 16.8%. So we remain confident in our operating margin durability especially as we start to see our growth algorithm of mid- to high single-digit growth over the long term. So we're pretty confident in that. And we think that as we get beyond '24, we certainly have the upside to sustain these operating margins longer. In terms of the pieces of margin versus SG&A, we don't -- as you know, we don't guide those particular in the line items, especially over the long term. But on the bottom line, we've established that we can deliver these results, and we remain confident in both for '24 as well as the long term beyond that.

我認為我們的想法是在 23 年初，我們設定了 15% 的營業利潤率下限。年終業績顯示，我們的營業利益率為 16.4%。今年，我們的指導值為 16.5% 至 16.8%。因此，我們對營業利潤率的持久性仍然充滿信心，特別是當我們開始看到長期中高個位數成長的成長演算法時。所以我們對此非常有信心。我們認為，當我們進入 24 年後，我們肯定有優勢來維持更長的營運利潤。就利潤與SG&A而言，我們不會——如您所知，我們不會在行項目中指導那些特定的內容，尤其是從長期來看。但總的來說，我們已經確定我們可以實現這些結果，我們對 24 年以及之後的長期前景仍然充滿信心。

Your next question will come from the line of Peter Benedict with Baird.

你的下一個問題將來自彼得·本尼迪克特和​​貝爾德的路線。

So first one is just on kind of the supply chain environment. You guys have obviously been doing a great job on what you can control. I'm curious about the things that are maybe out of your control, some of the events going on, some of the costs on ocean freight. Just kind of remind us maybe where you sit there, how you may be baked some of that into the outlook here for '24? That's my first question.

第一個是供應鏈環境。顯然，你們在自己能控制的事情上做得很好。我很好奇那些可能超出你控制範圍的事情，一些正在發生的事件，一些海運費用。只是提醒我們，也許你坐在那裡，你如何將其中的一些融入 24 世紀的前景中？這是我的第一個問題。

Sure. Our team, our supply chain team, I'd say, is just phenomenal, and they continue to show that through the results. Although things have normalized from the pandemic, we still have a lot of areas for improvement, which will result in margin upside. We want to continue to drive down returns and replacements and any issue that affects the customer. We want a perfect delivery. We want to take all the friction out of that delivery. And so we're seeing incredible numbers across the board, on all those metrics I mentioned in my script.

當然。我想說，我們的團隊，我們的供應鏈團隊非常出色，他們繼續透過結果證明了這一點。儘管情況已經從大流行中恢復正常，但我們仍然有很多需要改進的地方，這將導致利潤率上升。我們希望繼續減少退貨和換貨以及影響客戶的任何問題。我們想要完美的交付。我們希望消除交付過程中的所有摩擦。因此，我們在腳本中提到的所有指標上都看到了令人難以置信的數字。

When a problem comes along, they're real, the Red Sea disruption is pretty terrible. However, it is not costing us any more money. So far, it is costing us about 10 days of delivery, give or take. And as I mentioned last time, we padded the deliveries to our customers once we heard about it, so we didn't disappoint them. And if we outperform and deliver faster, they're always happier than if it's late. Because they don't -- they can't -- most people don't connect anything with these world events. And so we have to really manage our delivery quotes very quickly once we hear these things. That's the most recent example.

當問題出現時，它們是真實存在的，紅海的破壞是非常可怕的。然而，這並沒有花費我們更多的錢。到目前為止，我們的交貨時間大約是 10 天。正如我上次提到的，我們一聽到此事就立即向客戶發貨，所以我們沒有讓他們失望。如果我們表現出色並且交付速度更快，他們總是比遲到更高興。因為他們不——他們不能——大多數人不會將任何事情與這些世界事件聯繫起來。因此，一旦我們聽到這些事情，我們就必須非常迅速地管理我們的交貨報價。這是最近的例子。

There is no doubt in my mind, Peter, that this year will be met with other things that we have to deal with. We tend to be very proactive about -- thinking about what those things could be to make sure that we're ahead. And I guess the good news is if there is any -- when these things happen, they affect everyone. And we're usually able to get ahead of it and solve it better than most.

彼得，毫無疑問，今年我們將遇到其他必須處理的事情。我們傾向於非常主動地思考這些事情可能是什麼，以確保我們處於領先地位。我想好消息是，如果有的話——當這些事情發生時，它們會影響到每個人。我們通常能夠比大多數人更快解決問題。

Yes. No, very true. And then I guess my next question was around kind of the real estate, I guess, optimization process that's been going on for a while here couple of years now, maybe 10 to 15 stores lower year-over-year. Is that the cadence we should be expecting kind of going forward? And I'm just curious maybe how the occupancy cost growth is assumed for 2024, another year, maybe mid-single-digit increases, Jeff? Is that the way to think about it? Just trying to understand where you sit from that standpoint.

是的。不，非常真實。然後我想我的下一個問題是關於房地產的，我想，優化過程已經在這裡進行了一段時間，現在可能比去年同期減少 10 到 15 家商店。這是我們該期待的節奏嗎？我只是好奇，也許 2024 年（又一年）的入住成本增長是如何假設的，也許是中個位數的增長，傑夫？是這樣思考的嗎？只是想從這個角度來了解你的立場。

Yes. I mean in terms of where we are in our journey of retail optimization, we're probably in the middle innings. As I've discussed in the past, we have -- about 50% of our leases come due in the next 5 years. So we look to continue to optimize the real estate. And usually, we target a higher number of store closures, but they just tend to net out through the way the process works to about where we've been in the past few years.

是的。我的意思是，就我們零售優化之旅的進展而言，我們可能正處於中間階段。正如我過去所討論的，我們大約 50% 的租約將在未來 5 年內到期。因此，我們希望繼續優化房地產。通常，我們的目標是關閉更多的商店，但它們只是傾向於透過流程的運作方式來抵消我們過去幾年的情況。

So in terms of particular numbers, you can look to the past, say, 3 or 4 years is a good guidepost. And then in terms of where occupancy is going to go, and I'll go back to we don't guide individual lines. We really guide the top and the bottom line. So that gives us more levers to pull throughout the year. And now there are fixed costs within occupancy, there's also a lot of variable costs, too. So there's things we can go -- do throughout the year if necessary. So it's all embedded within our full year guidance.

所以就具體數字而言，你可以回顧過去，比如說，3、4年是一個很好的指導。然後就入住率的走向而言，我會回到我們不指導個別線路的問題。我們真正引導頂線和底線。因此，這為我們全年提供了更多的槓桿。現在，入住中有固定成本，也有很多變動成本。因此，如果有必要的話，我們可以全年做一些事情。因此，這一切都包含在我們的全年指導中。

Your next question comes from the line of Christopher Horvers with JPMorgan.

您的下一個問題來自摩根大通的 Christopher Horvers。

So I guess my first question is, as you talk about the optimism about the bottom of the market and the improvement quarter-to-date, I was just curious what you're seeing on the furniture side of the business. You mentioned some newness in West Elm resonating but it does sound like a lot of the decor categories are what's been driving the strength. On the other hand, the mix does shift back towards the furniture brands away from Williams-Sonoma into the first quarter.

所以我想我的第一個問題是，當您談到對市場底部的樂觀情緒以及本季迄今的改善時，我只是很好奇您在家具業務方面看到了什麼。您提到 West Elm 的一些新穎性引起了共鳴，但聽起來確實是許多裝飾類別推動了這一勢頭。另一方面，第一季的組合確實從威廉斯-索諾瑪轉向家具品牌。

So does the implied sort of sequential improvement in the first quarter? Are you seeing like better furniture demand trends? Maybe how much of it is some of the deflation working through the system from ocean freight normalizing. So any comment there would be really helpful.

那麼第一季的連續改善是否意味著？您是否看到更好的家具需求趨勢？也許其中有多少是由於海運正常化而透過系統產生的通貨緊縮。所以任何評論都會非常有幫助。

Yes, Chris. So furniture trends in Q4 were down, but sequentially improved over Q3. And yes, we do see a benefit by the higher penetration of Sonoma in Q4. But overall, to Laura's comments before, we're very pleased with our quarter-to-date performance. but it's early. And as Laura mentioned, there's the Easter shift, the turnover at Easter, which sometimes has impacts on the curves. But I think the important thing is we're not just a furniture company.

是的，克里斯。因此，第四季的家具趨勢有所下降，但比第三季有所改善。是的，我們確實看到了索諾瑪在第四季更高的滲透率帶來的好處。但總的來說，根據勞拉先前的評論，我們對本季迄今的表現非常滿意。但現在還早。正如勞拉所提到的，復活節的轉變，復活節的營業額，有時會對曲線產生影響。但我認為重要的是我們不僅僅是一家家具公司。

We only have about half of our assortment in furniture. So we have a powerful portfolio of brands with a wide range of product assortment, and we can really meet the trends as the consumer shopping. And that gives us confidence in where we see our outlook and we can really service the customers to what they're shopping to today.

我們的家具種類只有大約一半。所以我們擁有強大的品牌組合和廣泛的產品種類，我們能夠真正滿足消費者購物的趨勢。這讓我們對自己的前景充滿信心，並且我們能夠真正為客戶提供他們今天購物的服務。

For sure. And then in terms of the follow-up, I know you're not -- Jeff, you are not guiding to individual line items. But could you maybe help us think about like on the SG&A line, you've done an incredible job, really managing around incentives and the advertising, flexing it with demand and you had some headcount reductions as well a year ago. Should we think about that being more variable into a recovery like should you see rate leverage, should we think about it modeling it from a dollar growth perspective and focus less on rates. So any color there in terms of just how variable SG&A is into a recovery as you start to reinvest back into the business as the top line improves.

一定。然後就後續行動而言，我知道你不是——傑夫，你沒有指導單一訂單項目。但您能否幫助我們思考一下 SG&A 方面的情況，您做了一項令人難以置信的工作，真正圍繞激勵和廣告進行管理，根據需求進行靈活調整，並且一年前您也進行了一些裁員。我們是否應該考慮到復甦過程中的變數會更大，就像你看到利率槓桿一樣，我們是否應該考慮從美元成長的角度對其進行建模，並減少對利率的關注。因此，當你隨著收入的改善而開始對業務進行再投資時，SG&A 的變化對經濟復甦的影響有多大。

Yes, Chris. It's Laura. I just wanted to comment, I think it's important to remember that our focus this year is threefold. It's delivering growth, elevating customer service and driving margin. And we believe we can do all 3 things. We have that many opportunities in our model with our platform, with our world-class brands to achieve those things. I really -- as we look to the year, believe that the natural investments that we need to make will drive the top line.

是的，克里斯。是勞拉。我只是想發表評論，我認為重要的是要記住我們今年的重點有三個。它正在促進成長、提升客戶服務並提高利潤。我們相信我們可以做到這三件事。我們的模式、我們的平台、我們的世界級品牌有很多機會來實現這些目標。當我們展望這一年時，我真的相信我們需要進行的自然投資將推動營收成長。

And so to the extent of the line by line, I know we're not answering your questions about those line by line. But you've seen our -- what we produced even in a down cycle, right, with margin improvements. And as I said in I think last call, you can imagine what that looks like in an up cycle. Our investments that we've been making over the last 10 years, have gotten us to a place where we are ready for more volume without having to have a step-up infrastructure investment.

因此，就逐行而言，我知道我們不會逐行回答您的問題。但你已經看到了我們的生產，即使是在經濟下行週期，利潤率也有所提高。正如我在我認為最後一次通話中所說，你可以想像在上升週期中會是什麼樣子。過去 10 年我們一直在進行的投資，使我們能夠在無需增加基礎設施投資的情況下增加產量。

So while we talk about these things, they're small potatoes compared to distribution costs that others or a real platform -- re-platform costs that others have to put in place. We're ready for the volume to come this year and next and really excited about how that not only flows through, but also the opportunities to improve these customer service lines and we love those customer service lines because they drive margin.

因此，當我們談論這些事情時，與其他人或真實平台的分銷成本（其他人必須實施的重新平台成本）相比，它們只是小人物。我們已經準備好迎接今年和明年的銷售量，並且對這不僅是如何實現的，而且還有改善這些客戶服務線的機會感到非常興奮，我們喜歡這些客戶服務線，因為它們可以提高利潤。

Your next question comes from the line of Kate McShane with Goldman Sachs.

您的下一個問題來自高盛的凱特·麥克沙恩 (Kate McShane)。

Question on pricing. We wondered where you were on an average price versus last year. I know you talked about adding more opening price points last quarter. I just wondered if we could get an update on how that trended in Q4 and what you expect to see in 2024.

關於定價的問題。我們想知道您的平均價格與去年相比處於什麼位置。我知道您談到上個季度增加更多開盤價點。我只是想知道我們是否可以獲得有關第四季度趨勢的最新資訊以及您對 2024 年的預期。

It's interesting, Kate. We try to glean every piece of information from sales and then they change. So I don't think it's fair to say right now that there's a specific price point that's the magic price point. We're seeing success across all prices. The customer wants a value. So we have some really expensive stuff that's really selling. And then we have some value price points that are really selling. And so there's not a pattern there that I'd hang a strategy on for now.

這很有趣，凱特。我們嘗試從銷售中收集每一個訊息，然後它們就會改變。所以我認為現在說有一個特定的價格點就是神奇的價格點是不公平的。我們在所有價格上都看到了成功。客戶想要一個價值。所以我們有一些非常昂貴但非常暢銷的東西。然後我們有一些真正暢銷的超值價格點。因此，目前還沒有我可以堅持的策略模式。

In all of our brands, we've worked on great value to the consumer and also really new fresh designs. And so you cannot underestimate how important it is. When we get it right on a design, it's not that we take advantage of the price, it's that our price is generally a lot cheaper than other people making the same product and our quality is better. So we're -- that's what we're focused on is delivering value to the customer -- and I -- we were talking about this before the call, I can't prove that it's low prices, mid prices and high prices that are soft or strong.

在我們所有的品牌中，我們都致力於為消費者提供巨大的價值以及真正新穎的設計。所以你不能低估它的重要性。當我們設計正確時，並不是我們利用了價格優勢，而是我們的價格通常比其他人生產相同產品便宜得多，而且我們的品質更好。所以我們——這就是我們關注的重點是為客戶提供價值——而我——我們在電話會議之前討論過這個問題，我無法證明是低價、中價和高價才是最重要的。是軟的還是強的。

It's the stuff they want, and it's the new fresh product.

這是他們想要的東西，而且是新的新鮮產品。

And I just wanted to ask a follow-up question with regards to tariffs that if there were to be, [I noticed] is a risk profile for your guidance, the election. But how are you thinking about managing through a scenario where there could be more tariffs?

我只是想問一個有關關稅的後續問題，如果有的話，[我注意到]是您指導選舉的風險狀況。但您如何考慮應對可能增加關稅的情況？

Kate. Well, first, we're in an election year. A lot's get said on the campaign trail and who knows where this conversation really goes in the end. Second, we've transformed our sourcing base since the last time the subject was top of mind 6 years ago. Today, only 25% of our goods are sourced from China, which is about half of what it was back then. And here is the most important thing. We have some real key competitive advantages that serve us well into these situations. First, 90% of our products are proprietary, designed and exclusively made for our brands. And then we operate our own in-house best-in-class global sourcing operation.

凱特。嗯，首先，我們正處於選舉年。在競選過程中說了很多，誰知道這場談話最終會走向何方。其次，自從 6 年前上次這個主題成為人們關注的焦點以來，我們已經改變了我們的採購基礎。如今，我們的商品只有 25% 來自中國，大約是當時的一半。這是最重要的事。我們擁有一些真正的關鍵競爭優勢，可以很好地應對這些情況。首先，我們 90% 的產品是專有的，專為我們的品牌設計和製造。然後我們經營我們自己的一流的內部全球採購業務。

So with 12 overseas offices, it's our own boots on the ground, managing sourcing decisions, production and shipping, and we're the 13th largest container importer into the United States. So we have scale and relationships. Others do not. So punchline being, if the landscape changes, we have the ability to respond that others do not.

因此，我們在海外設有 12 個辦事處，我們自己負責管理採購決策、生產和運輸，並且我們是美國第 13 大貨櫃進口商。所以我們有規模和關係。其他人則不然。所以重點是，如果情況發生變化，我們有能力做出其他人沒有的反應。

I'll now hand the call back to Laura Alber for any closing remarks.

現在，我將把電話轉回給勞拉·阿爾伯 (Laura Alber)，讓其結束語。

Well, thank you all for joining us. We really appreciate your support and look forward to seeing some of you in New York and talking to you throughout the year.

好的，謝謝大家加入我們。我們非常感謝您的支持，並期待全年在紐約見到您並與您交談。

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

今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。