Williams-Sonoma Inc (WSM) 2024 Q2 法說會逐字稿

Welcome to the Williams-Sonoma, Inc. second-quarter 2024 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. 2024 年第二季財報電話會議。 （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 second 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 our revised guidance for fiscal '24 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. Additionally, we will refer to certain non-GAAP financial measures.

早安，感謝您參加我們的第二季財報電話會議。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陳述，包括我們對 24 財年的修訂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，但是，我們不能保證這些陳述將會實現，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。此外，我們將參考某些非公認會計準則財務指標。

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. Finally, a replay of this call will be available on our Investor Relations website.

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。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 review our Q2 results, I want to take a minute to recognize our team for their continued contributions. We recently held our General Managers Conference in Arizona. It was our first leadership conference since the pandemic, and all of us have been inspired by the level of passion, dedication, and talent of our store management and field teams.

謝謝你，傑瑞米。大家早安，感謝您加入通話。在我們回顧第二季的業績之前，我想花一點時間來表彰我們的團隊的持續貢獻。我們最近在亞利桑那州舉行了總經理會議。這是自疫情爆發以來我們舉行的第一次領導層會議，我們所有人都被商店管理和現場團隊的熱情、奉獻精神和才華所鼓舞。

Today, we are reporting strong results for the second quarter of 2024, which were driven by our Q2 improved top line trends, market share gains, and continued delivery on our commitment to profitability. In Q2, our comps came in at negative 3.3%, and we exceeded profitability estimates with an operating margin of 16.2%, and earnings per share of $1.74, reflecting the 2-for-1 stock split we completed in July. We are pleased with our strong operating results and the operational improvements that produced these results. We continue to demonstrate the strength of our margin profile even in a difficult market. There is no doubt that the home furnishings market is challenged due to the uncertainty in the economy, coupled with slow housing.

今天，我們報告了 2024 年第二季度的強勁業績，這是由於我們第二季度營收趨勢的改善、市場份額的增長以及我們對盈利能力的承諾的持續兌現所推動的。第二季度，我們的比較結果為負 3.3%，營業利潤率為 16.2%，每股收益為 1.74 美元，超出了盈利預期，這反映了我們 7 月完成的 2 比 1 股票分割。我們對強勁的經營業績以及產生這些業績的營運改善感到滿意。即使在困難的市場中，我們也繼續展示我們的利潤狀況的實力。毫無疑問，由於經濟的不確定性以及房地產市場的放緩，家居市場面臨挑戰。

This leads us to believe that we may not see the back half acceleration that we expected despite all of the hard work we've done to improve our product offer and our customer experience. Therefore, we believe it is prudent to reduce our top line outlook for the balance of the year while continuing to deliver on our commitment to profitability and, in fact, we are raising our bottom line guidance. We are now expecting full year revenues to come in a range of down 4% to down 1.5%, but we are raising our guidance on operating margin to be in the range of 17.4% and to 17.8%. Now let me review progress on our three key priorities that we outlined with you back in March. First, returning to growth; second, elevating our world-class customer service; and third, driving margin.

這讓我們相信，儘管我們為改善產品供應和客戶體驗付出了所有努力，但我們可能不會看到預期的後半段加速。因此，我們認為，在繼續履行我們對獲利能力的承諾的同時，降低今年剩餘時間的營收預期是謹慎的做法，事實上，我們正​​在提高我們的獲利指引。我們目前預計全年營收將下降 4% 至 1.5%，但我們將營業利潤率指引上調至 17.4% 至 17.8%。現在讓我回顧一下我們三月與您概述的三個關鍵優先事項的進展。第一，恢復成長；第二，提升我們世界級的客戶服務；第三，推動利潤率。

I'll start with an update on returning to growth. Our improved top line trends outperformed the industry decline in the second quarter, and we maintained our commitment to not offering site-wide promotions. A key element of our return to growth strategy is our focus on innovation in our product lines across brands, including substantially more newness across our assortments. And our unique in-house design capabilities and vertically integrated sourcing organization allows us to offer this high-quality design innovation at compelling price points. The next key component of our return to growth strategy is our commitment to improving our channel experiences.

我將首先介紹有關恢復增長的最新情況。我們改善的收入趨勢超過了第二季度行業的下滑，並且我們維持了不提供全站促銷的承諾。我們恢復成長策略的關鍵要素是我們專注於跨品牌產品線的創新，包括大幅增加我們產品品類的新穎性。我們獨特的內部設計能力和垂直整合的採購組織使我們能夠以極具吸引力的價格提供這種高品質的設計創新。我們恢復成長策略的下一個關鍵組成部分是我們對改善通路體驗的承諾。

Our investment in our proprietary e-commerce technology serves as a competitive advantage versus our peers. From product discovery and selection to personalization, content, customer care, and the final mile, our team is constantly thinking about how to elevate and evolve our best-in-class e-commerce experience. In the quarter, we've been focused on expanding our online content and providing more inspiration in the shop app to drive conversion. And of course, we cannot forget our best-in-class retail business. We have continued to improve our in-store experience with integrational new products, improved in-stock inventory levels and next-level design services, including our new design tool that allows for 3D rendering.

我們對專有電子商務技術的投資是我們與同業相比的競爭優勢。從產品發現和選擇到個人化、內容、客戶服務和最後一英里，我們的團隊不斷思考如何提升和發展我們一流的電子商務體驗。本季度，我們一直專注於擴展線上內容，並在商店應用程式中提供更多靈感以推動轉換。當然，我們不能忘記我們一流的零售業務。我們透過整合新產品、改進的庫存水準和更高水準的設計服務（包括支援 3D 渲染的新設計工具）繼續改善我們的店內體驗。

As our team's reminded us at our general managers conference this year, we really do have the best team in retail. And our retail optimization efforts continue transforming our store fleet to be positioned in the most profitable, inspiring and strategic locations. Now let's talk through progress on our second and third key priority, which goes hand in hand. We continue to make progress improving our world-class customer service and driving margins, contributing significantly to the operating margin we reported today. One of the foundational principles upon which this company is built is that the customer is at the center of everything we do, and their satisfaction is key to our operating performance.

正如我們的團隊在今年的總經理會議上提醒我們的那樣，我們確實擁有零售業最好的團隊。我們的零售優化工作不斷改造我們的店群，將其定位在最有利可圖、最鼓舞人心和最具戰略意義的地點。現在讓我們來談談我們的第二個和第三個關鍵優先事項的進展情況，這兩個優先事項是相輔相成的。我們繼續在改善世界一流的客戶服務和提高利潤方面取得進展，為我們今天報告的營業利潤做出了重大貢獻。該公司建立的基本原則之一是客戶是我們一切工作的中心，他們的滿意度是我們營運績效的關鍵。

Without our customers, truly nothing else matters. And in Q2, we continued to make meaningful improvements in our customer service metrics. The supply chain team continues to reduce costs by eliminating out-of-market and then multiple shipments, fewer customer accommodations, lower returns and damages and reduced replacement. And our ongoing commitment to not running site-wise promotions and the reduction of our promotional offerings have improved margins. We are focused on delivering a compelling value equation to our customers, which in turn maximizes our full price selling.

沒有我們的客戶，其他一切真的都不重要。在第二季度，我們繼續對客戶服務指標進行有意義的改進。供應鏈團隊透過消除市場外和多次發貨、減少客戶住宿、降低退貨和損壞以及減少更換來繼續降低成本。我們持續致力於不進行現場促銷活動，並減少促銷活動，從而提高了利潤率。我們致力於為客戶提供令人信服的價值方程式，從而最大限度地提高我們的全價銷售。

Now I'd like to update you on the performance of our brands. Pottery Barn ran a negative 7.1% comp in Q2. Improvements in trends were driven by our compelling product assortments in coastal decorating and entertaining and seasonal holidays. We saw success in our new summer furniture launches and are optimistic about our fall furniture newness with a focus on proprietary finishes and design. Looking ahead to the back half, we have a strong holiday lineup that is off to a great start.

現在我想向您介紹我們品牌的最新表現。 Pottery Barn 在第二季的盈餘率為負 7.1%。我們在沿海裝飾、娛樂和季節性假期方面引人注目的產品種類推動了趨勢的改善。我們在夏季新家具的推出中取得了成功，並對秋季家具的新品感到樂觀，重點是專有的飾面和設計。展望後半程，我們擁有強大的假期陣容，有一個好的開始。

There is no one else like us in the market with the incredible assortment of seasonal decorating for Halloween, Thanksgiving, Christmas, and Hanukkah, and we are building on successful new programs that we have launched. The Pottery Barn children's business ran a positive 1.5% comp in Q2, a continuation of our positive comp trend in the first quarter of the year. Innovation across our product offering and improvement in the shopping experience have been key to delivering this growth. And these life stage brands back-to-school was a highlight, with dorm driving double-digit growth. In this space, we continue to attract new customers with our market-leading design, excellent quality, and sustainability promise.

市場上沒有其他公司能像我們一樣為萬聖節、感恩節、聖誕節和光明節提供令人難以置信的各種季節性裝飾，並且我們正在以我們已推出的成功的新計劃為基礎。 Pottery Barn 兒童業務在第二季實現了 1.5% 的正比較，延續了今年第一季的正比較趨勢。我們產品的創新和購物體驗的改善是實現這一成長的關鍵。這些生命階段品牌重返校園是一大亮點，宿舍推動了兩位數的成長。在這個領域，我們繼續憑藉市場領先的設計、卓越的品質和永續發展承諾吸引新客戶。

We have bolstered the shopping experience with a suite of digital shopping tools and expanded in-store services, including free dorm design services and convenient shipping options to any of our stores near campuses. Product collaborations also continue to drive sales with existing and new customers. We're especially pleased with our recent collaboration with Roller Rabbit, and we are seeing continued success with LoveShackFancy.

我們透過一套數位購物工具和擴展的店內服務增強了購物體驗，包括免費的宿舍設計服務和到校園附近任何商店的便利運輸選擇。產品合作也持續推動現有和新客戶的銷售。我們對最近與 Roller Rabbit 的合作感到特別滿意，並且我們看到與 LoveShackFancy 的持續成功。

Now let's review West Elm, which we had a negative 4.8% comp in Q2. The brand continues to see success in new product introductions with both summer and fall newness driving double-digit positive comp to last year. And this month, we are thrilled to drop our first catalog in the brand since holiday 2021. Additionally, West Elm launched a very exciting second collaboration with a fashion brand, RHODE, following a successful debut last year. This new collection features 120 pieces, including a relaunch of past favorites combined with new textiles, tabletop, lighting, decorative accessories, bath rugs, and a collection of items designed for college dorms. This collaboration is on track to do more than double the initial launch last year. Given the positive trends in newness and exciting collaborations in the pipeline, we have a sizable opportunity in West Elm as it rebalances more inventory into these new products.

現在讓我們回顧一下 West Elm，我們在第二季的業績率為負 4.8%。該品牌在新產品推出方面繼續取得成功，夏季和秋季的新品推動了去年兩位數的正值成長。本月，我們很高興推出自 2021 年假期以來該品牌的首個產品目錄。這個新系列包含 120 件單品，包括重新推出過去的最愛，並結合新的紡織品、桌面、照明、裝飾配件、浴室地毯以及專為大學宿舍設計的一系列物品。此次合作的銷售量預計將比去年首次推出的銷售量增加一倍以上。鑑於新產品的積極趨勢和管道中令人興奮的合作，我們在 West Elm 擁有相當大的機會，因為它將更多庫存重新平衡到這些新產品中。

The Williams-Sonoma brand ran a negative 0.8% comp in Q2. In the quarter, we benefited from the performance of our new and exclusive products, offset by some tough compares in electric. Sales from summer newness were up double digits to last year, and we're seeing strength in new and premium products found only at Williams-Sonoma. The strategy to offer our customers quality product they can't find anywhere else is working, and we are excited about our robust second half lineup of in-house design products and exclusive. The Williams-Sonoma brand remains focused on delivering immersive culinary experiences in-store, online, and at key events across the country.

Williams-Sonoma 品牌第二季的業績年減 0.8%。在本季度，我們受益於新產品和獨家產品的性能，但被電動方面的一些艱難比較所抵消。夏季新品的銷售額比去年增長了兩位數，我們看到只有威廉斯-索諾瑪才能找到的新品和優質產品的強勁表現。為客戶提供在其他地方找不到的優質產品的策略正在發揮作用，我們對下半年強大的內部設計產品和獨家產品陣容感到興奮。威廉斯-索諾瑪品牌仍然專注於在店內、線上和全國各地的重要活動中提供身臨其境的烹飪體驗。

In store, we've inspired thousands of customers through our Sunday Skill series and demos teaching customers from how to sous vide to how to make ice cream. Our tools for change campaign supporting No Kid Hungry celebrated its 10th anniversary this July. To date, we're proud to have raised over $16 million to help No Kid Hungry and end childhood hunger in America. We're grateful to all the chefs and celebrities that have contributed designs to our specials over the years. As we look to the second half, we will continue inspiring our customers to cook, toast, and entertain for the holidays.

在店裡，我們透過週日技能係列和演示，教導顧客如何真空低溫烹調和如何製作冰淇淋，啟發了成千上萬的顧客。今年 7 月，我們支持 No Kid Hungry 的變革工具活動慶祝了 10 週年。迄今為止，我們很自豪已籌集了超過 1600 萬美元來幫助「No Kid Hungry」並消除美國的兒童飢餓。我們感謝多年來為我們的特色菜提供設計的所有廚師和名人。展望下半年，我們將繼續鼓勵顧客在節慶期間烹飪、敬酒和娛樂。

This fall, the brand will launch the Art of Entertaining, where customers can benefit from expert advice on everything from setting a table to hosting a dinner party to floral arranging techniques and to napkin-folding tricks. We believe this focus on holidays and celebrations will not just drive volume in key categories, but also cement the brand as the ultimate celebration destination in retail for new and existing customers. And lastly, we're excited by the momentum of our Williams-Sonoma Home business, which ran a slight positive comp in Q2.

今年秋天，該品牌將推出“娛樂藝術”，顧客可以從擺設餐桌、舉辦晚宴、插花技巧和折疊餐巾技巧等方方面面的專家建議中受益。我們相信，對節日和慶祝活動的關注不僅會增加關鍵類別的銷量，還會鞏固該品牌作為新舊客戶零售終極慶祝目的地的地位。最後，我們對 Williams-Sonoma Home 業務的勢頭感到興奮，該業務在第二季度的業績略有增長。

Now I'd like to update you on our other initiatives. Business to business continued its momentum in Q2, growing 11.5%, with record quarterly contract volume growing 21.6% while trade grew 7.1%. The hospitality space remains strong with notable wins at the Sheraton Boston, the Hilton Beverly Hills, Renaissance, Las Vegas, and Under Canvas for the Yosemite location. We have launched a new brand standard program with IHG's Hotel Indigo brand being named the preferred vendor for lighting and upholstery categories. We're also seeing strong momentum in the multifamily space, including growing partnerships with Korman Communities and the Discovery Land Company, and we are thrilled to partner with St. Jude to develop custom beds and nightstands for their ranch for children project in Nevada.

現在我想向您介紹我們其他舉措的最新情況。第二季企業對企業持續保持成長勢頭，成長 11.5%，創紀錄的季度合約量成長 21.6%，而貿易成長 7.1%。酒店業依然強勁，波士頓喜來登酒店、比佛利山希爾頓酒店、拉斯維加斯萬麗酒店和約塞米蒂國家公園的 Under Canvas 都取得了顯著的勝利。我們推出了新的品牌標準計劃，洲際酒店集團的英迪格酒店品牌被指定為照明和室內裝飾類別的首選供應商。我們也看到多戶家庭空間的強勁勢頭，包括與 Korman Communities 和 Discovery Land Company 不斷加強的合作關係，我們很高興與 St. Jude 合作，為其內華達州的兒童牧場計畫開發客製化床和床頭櫃。

Now I'd like to talk about our global business. While we continue to navigate global macroeconomic pressures, our strategic initiatives are delivering positive results across key strategic markets, including India, Canada, and Mexico. The Canadian market continues to show strength, driven by growth from enhanced design services, emerging brands and omnichannel services. In Mexico, we are optimistic about our brand's performance in the market, with strength driven by all brands, with the most significant contribution coming from PB Kids. We'll be opening two new stores by the end of the year and three more set to open in early 2025. And finally, India remains a key area of growth for us.

現在我想談談我們的全球業務。在我們持續應對全球宏觀經濟壓力的同時，我們的策略性舉措正在印度、加拿大和墨西哥等關鍵戰略市場取得積極成果。在增強設計服務、新興品牌和全通路服務成長的推動下，加拿大市場持續表現強勁。在墨西哥，我們對我們品牌的市場表現持樂觀態度，所有品牌的實力都在推動，其中貢獻最大的是PB Kids。我們將在今年年底前開設兩家新店，並計劃在 2025 年初開設另外三家店。

We're excited to expand the West Elm brand with two additional locations in new markets by the end of the year. Overall, our assortment, market and service strategies are the differentiators for continued growth in our global markets. Lastly, I'd like to update you on our emerging brands. Rejuvenation delivered another double-digit quarter. We're very optimistic about Rejuvenation's performance with four consecutive quarters of positive comps.

我們很高興能夠在今年年底前在新市場開設另外兩個辦事處，從而擴展 West Elm 品牌。整體而言，我們的品種、市場和服務策略是我們在全球市場持續成長的差異化因素。最後，我想向您介紹我們新興品牌的最新情況。 Rejuvenation 再次實現了兩位數的季度業績。我們對 Rejuvenation 的表現非常樂觀，因為它連續四個季度取得了積極的業績。

Their unwavering focus on delivering the highest quality products has allowed them to gain market share. The trend of home updates, particularly in kitchens and bathrooms, continues with notable growth in cabinets and bath hardware and lighting. Additionally, our growth categories, including window hardware, textiles, home furnishings, and organization solutions also performed well, providing our customers with the perfect finishing touches to complete their spaces. Mark and Graham, our monogram gifting business, also drove a high double-digit growth in Q2. They saw success with our coastal and beach products for the homes and on-the-go and had strong gifting sales in golf and personalized games.

他們堅定不移地致力於提供最高品質的產品，這使他們贏得了市場份額。家居更新的趨勢，尤其是廚房和浴室的更新趨勢，隨著櫥櫃、浴室五金和照明的顯著增長而繼續。此外，我們的成長類別，包括窗戶五金、紡織品、家居用品和組織解決方案也表現良好，為我們的客戶提供了完美的收尾服務來完善他們的空間。我們的字母組合禮品業務 Mark and Graham 在第二季度也實現了兩位數的高成長。他們看到了我們的家庭和移動沿海和海灘產品的成功，並且在高爾夫和個性化遊戲方面的禮品銷售強勁。

They've recently launched the Monogram Wedding Shop as well as Mark and Graham Kids, which will be an exciting incremental growth strategy for the brand. And finally, GreenRow, our newest brand, continues to grow and expand its affirmant of vintage-inspired colorful furnishings that are sustainably sourced and designed to last. This month, GreenRow launched a new collection of thoughtfully made products, over 150 new items and a new catalog. The brand continues to innovate and create unique and differentiated products that fill a void in the market. We look forward to continued growth and exciting new products and partnerships in the coming months for GreenRow.

他們最近推出了 Monogram Wedding Shop 以及 Mark and Graham Kids，這將是該品牌令人興奮的增量成長策略。最後，我們的最新品牌 GreenRow 繼續發展並擴大其對復古風格的彩色家具的肯定，這些家具的來源是可持續的，設計持久。本月，GreenRow 推出了精心製作的新產品系列、150 多種新商品和新目錄。品牌不斷創新，創造獨特且差異化的產品，填補市場空白。我們期待 GreenRow 在未來幾個月內持續成長並推出令人興奮的新產品和合作夥伴關係。

In summary, we are pleased with our strong operating results. Our revised outlook today reflects our prudent view of the top line and the confidence we have in our profitability profile. Despite the macro uncertainty, we remain focused on our key priorities for 2024 that are driving the results we announced today. During the last few years, we, as a company, have navigated, learned, optimized, and built all in preparation for our next chapter of growth. We have a strong omnichannel platform with an exclusive lifestyle offering and a sophisticated distribution network with additional capacity.

總而言之，我們對強勁的經營業績感到滿意。我們今天修改後的展望反映了我們對營收的審慎看法以及我們對獲利狀況的信心。儘管存在宏觀不確定性，我們仍然專注於 2024 年的關鍵優先事項，這些優先事項推動了我們今天宣布的表現。在過去的幾年裡，我們作為一家公司，已經進行了導航、學習、優化和構建，為我們的下一個成長篇章做好了準備。我們擁有強大的全通路平台，提供獨特的生活風格產品和具有額外容量的複雜分銷網絡。

And with that, I will 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，讓他更詳細地向您介紹這些數字和我們的前景。

Thank you, Laura, and good morning, everyone. We're pleased to deliver another quarter of strong results, highlighted by our Q2 improved top line trends, market share gains, and earnings that continue to exceed expectations. Laura touched on our three key priorities for fiscal year '24. One, returning to growth, fueled by product innovation and channel experience; two, elevating our world-class service, which produces both customer retention and expense savings; and three, driving earnings as we continue to deliver strong profitability. These three priorities connect directly to the five key drivers underpinning our strong profitability in Q2.

謝謝勞拉，大家早安。我們很高興再交出一個季度的強勁業績，第二季度的營收趨勢有所改善、市場份額成長以及收益繼續超出預期，這凸顯了這一點。 Laura 談到了我們 24 財年的三個關鍵優先事項。一、在產品創新和通路體驗的推動下恢復成長；第二，提升我們的世界級服務，從而保留客戶並節省費用；第三，隨著我們持續提供強勁的獲利能力，推動獲利。這三個優先事項與支撐我們第二季強勁獲利能力的五個關鍵驅動因素直接相關。

First, our e-commerce sales mix, with its higher operating margin sustaining at 66% of total revenues; second, our retail optimization strategy, delivering 3% less occupancy expense, inclusive of additional technology and supply chain investments; third, the pricing power of our in-house designed proprietary products, and our emphasis on full price selling, contributing to a 380-basis-point improvement in merchandise margins; fourth, our supply chain efficiency, from our relentless focus on customer service and operational excellence, producing 180 basis points improvement in selling margins; and fifth, our ability to control costs as we continue to manage variable employment costs materially in line with top line trends. Given our strong Q2 results, we're confident we'll continue to gain market share and deliver strong earnings even in this uncertain environment.

首先，我們的電子商務銷售組合，其較高的營業利潤率維持在總收入的66%；其次，我們的零售優化策略，使入住費用減少 3%，其中包括額外的技術和供應鏈投資；第三，我們自主設計的專有產品的定價能力，以及我們對全價銷售的重視，使商品利潤率提高了380個基點；第四，我們的供應鏈效率，源自於我們對客戶服務和卓越營運的不懈關注，使銷售利潤率提高了 180 個基點；第五，我們控製成本的能力，因為我們繼續根據收入趨勢管理可變的就業成本。鑑於我們第二季的強勁業績，我們有信心即使在這種不確定的環境下，我們也將繼續獲得市場份額並實現強勁的利潤。

Now let's dive into the numbers. I'll start with our Q2 results and then provide an update on guidance for '24. Net revenues finished at $1.79 billion, slightly below our expectations. We gained market share as our comp of negative 3.3% outperformed the industry, which declined by approximately 10%. Importantly, we accomplished this even as we reduced our overall level of promotions in the quarter. Our Q2 comps improved from Q1, reflective of better performance in furniture and continued growth in our non-furniture categories. From a cadence perspective, our trends across the quarter were choppy and inconsistent, reflecting the uncertain macroeconomic backdrop. Moving down to the income statement, gross margin came in at 46.2%, 550 basis points higher than last year, and substantially exceeding expectations.

現在讓我們深入研究數字。我將從第二季的結果開始，然後提供 24 年指引的更新。淨收入最終為 17.9 億美元，略低於我們的預期。我們的市佔率為負 3.3%，優於下降約 10% 的產業。重要的是，即使我們降低了本季的整體促銷水平，我們還是實現了這一目標。我們第二季的業績較第一季有所改善，反映出家具業務的表現較好以及非家具類別的持續成長。從節奏的角度來看，我們整個季度的趨勢波動且不一致，反映了不確定的宏觀經濟背景。再來看損益表，毛利率為46.2%，比去年高出550個基點，大幅超出預期。

There were three drivers to this 550-basis-point improvement, merchandise margins, supply chain efficiencies, and occupancy costs. Let's start with merchandise margins, which improved 380 basis points. This improvement was driven by our ongoing commitment to full price selling, lower input costs, and the residual benefit from lower inbound freight as we lapped last year's pandemic-related ocean freight runoff. Next, supply chain efficiencies contributed 180 basis points. Our commitment to full price selling is smoothing out the peaks and troughs created by promotional activity. This is yielding improved customer service, reduced customer lead times and significant cost savings from more efficient operations.

550 個基點的改善有三個驅動因素：商品利潤率、供應鏈效率和佔用成本。讓我們從商品利潤率開始，該利潤率提高了 380 個基點。這項改善是由於我們持續致力於全價銷售、降低投入成本，以及隨著我們克服了去年與大流行相關的海運徑流而減少入境貨運帶來的剩餘收益，推動了這一改善。其次，供應鏈效率貢獻了 180 個基點。我們對全價銷售的承諾正在消除促銷活動造成的高峰和低谷。這改善了客戶服務，縮短了客戶交貨時間，並透過更有效率的營運顯著節省了成本。

Key customer service metrics, including returns, accommodations, damages, replacements, out-of-market shipping, and multiple deliveries per order are all performing better than pre-pandemic levels. Moreover, we are seeing cost savings across the supply chain from more consistent operations, including warehouse, manufacturing and delivery expenses. And finally, occupancy costs, which were down 3% from last year deleveraged 10 basis points. We continue to optimize our retail fleet, while we invest in our world-class technology stack and our supply chain.

關鍵的客戶服務指標，包括退貨、住宿、損壞、更換、市場外運輸和每個訂單的多次交付，都比疫情前的水平要好。此外，我們看到更一致的營運節省了整個供應鏈的成本，包括倉庫、製造和交付費用。最後，入住成本比去年下降了 3%，去槓桿化了 10 個基點。我們繼續優化我們的零售車隊，同時投資世界一流的技術堆疊和供應鏈。

During the quarter, we began operating our new Arizona distribution center. This fully automated facility will replace an outdated distribution center, improve service time to our customers, and lower employment and shipping costs. Included in our occupancy cost this quarter were the cost of running both the new and old buildings, which will continue for the balance of fiscal year '24. Wrapping up gross margin, we delivered substantially higher gross margin this quarter. Turning now to SG&A, which came in at 30% of revenues or 390 basis points higher than last year from higher employment expense and advertising spend.

本季度，我們開始營運新的亞利桑那州配送中心。這個完全自動化的設施將取代過時的配送中心，縮短對客戶的服務時間，並降低就業和運輸成本。本季的入住成本包括新舊建築的營運成本，將持續到 24 財年的剩餘時間。總結毛利率，我們本季的毛利率大幅提高。現在轉向 SG&A，由於僱用費用和廣告支出增加，SG&A 佔收入的 30%，比去年高出 390 個基點。

Employment expense was 200 basis points higher year-over-year, mostly from higher performance-based incentive compensation due to our strong EPS performance year to date. In Q2, we continue to manage variable employment costs across our stores, distribution centers and customer care centers, materially in line with top line trends. Advertising expense deleveraged 150 basis points as we continue to invest into higher levels of advertising spend. Our multi-brand portfolio allows us to test the return of our incremental spend and our own hands-on keyboard approach allows our investment to go further and keeps our learnings in-house. Our advertising model is a key competitive advantage in the home furnishings industry.

僱用費用較去年同期增加 200 個基點，主要是由於我們今年迄今為止強勁的每股收益表現，基於績效的激勵薪酬更高。在第二季度，我們繼續管理商店、配送中心和客戶服務中心的變動就業成本，這與營收趨勢基本一致。隨著我們繼續投資於更高水準的廣告支出，廣告支出去槓桿化了 150 個基點。我們的多品牌產品組合使我們能夠測試增量支出的回報，而我們自己的實踐鍵盤方法使我們的投資能夠走得更遠，並將我們的知識保留在內部。我們的廣告模式是家居產業的關鍵競爭優勢。

On the bottom line, our earnings once again exceeded expectations. Operating income came in at $290 million, with operating margin at 16.2%, which was 160 basis points above last year. Diluted earnings per share was $1.74, up $0.18 or 12% year over year. On the balance sheet, we ended the quarter with a cash balance of $1.3 billion, with no debt outstanding. This was after we invested $31 million in capital expenditures supporting our long-term growth, and we returned $203 million to our shareholders through share repurchases and quarterly dividends. Merchandise inventories ended the quarter at $1.2 billion, down 4.1% to last year. Our inventory levels are in line with our top line trends and are well positioned to support our business.

從根本上來說，我們的獲利再次超出了預期。營業收入為 2.9 億美元，營業利益率為 16.2%，比去年提高 160 個基點。稀釋每股收益為 1.74 美元，年增 0.18 美元，即 12%。在資產負債表上，本季末我們的現金餘額為 13 億美元，沒有未償債務。在此之前，我們投資了 3,100 萬美元的資本支出來支持我們的長期成長，並透過股票回購和季度股息向股東返還了 2.03 億美元。本季末商品庫存為 12 億美元，比去年同期下降 4.1%。我們的庫存水準符合我們的營收趨勢，並且能夠很好地支持我們的業務。

Summing up our Q2 results, we're proud to have delivered yet another quarter of earnings exceeding expectations. I'd like to thank our team at Williams-Sonoma, Inc., for delivering these great results. Our recent General Managers' Conference reminded me how our talented, dedicated team is the best in retail and the key to our success.

總結我們第二季的業績，我們很自豪又一個季度的收益超出了預期。我要感謝 Williams-Sonoma, Inc. 的團隊取得了這些出色的成果。我們最近的總經理會議提醒我，我們才華洋溢、敬業的團隊是零售業最優秀的，也是我們成功的關鍵。

Now let's turn to our '24 outlook. 2024 continues to be a challenging environment for home furnishings due to macroeconomic uncertainty in the slow housing market. This leads us to believe it's prudent to reduce our top line outlook for the balance of the year while raising our operating margin guidance as we continue to deliver on our commitment to profitability. It's important to note that our lower sales outlook is offset by our raised operating margin, producing materially similar implied EPS guidance.

現在讓我們轉向 24 世紀的展望。由於房地產市場緩慢，宏觀經濟存在不確定性，2024 年對於家居用品來說仍然是一個充滿挑戰的環境。這使我們相信，在我們繼續履行對獲利能力的承諾的同時，降低今年剩餘時間的營收預期，同時提高我們的營業利潤率指導是謹慎的做法。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, we now expect full year '24 net revenues to be in the range of down 4% to down 1.5%, with comps between down 5.5% to down 3%. Our updated guidance reflects the macroeconomic uncertainty, combined with our choppy and inconsistent trends. With this backdrop in mind, we're providing an updated range of outcomes for our top line. The midpoint of our guide reflects a continuation of the first half economic and consumer dynamics through the back half of '24. The high end of the guide implies some acceleration in industry trends coupled with increased traction of our growth initiatives.

就營收而言，我們現在預計 24 年全年淨收入將下降 4% 至 1.5%，而同期淨利將下降 5.5% 至 3%。我們更新的指導反映了宏觀經濟的不確定性，以及我們波動和不一致的趨勢。考慮到這一背景，我們為我們的營收提供了一系列最新結果。我們指南的中點反映了上半年經濟和消費者動態到 24 年下半年的延續。該指南的高端意味著行業趨勢的加速以及我們成長計劃的吸引力的增強。

The low end of our guide reflects the recognition that the macroeconomic environment may have a greater impact on our results in the back half of '24. On the bottom line, we are raising our full year operating margin guidance 40 basis points based upon our Q2 outperformance. We continue to anticipate our operating margins in the back half will be materially in line with 2023 results. With a 40-basis-point increase, we are raising our full year '24 operating margin to a range of 18.0% to 18.4%, which includes a 60-basis-point benefit from the full year impact from the Q1 out-of-period adjustment. Without the Q1 out-of-period adjustment, our full year operating margin will now be in the range of 17.4% to 17.8%.

我們指南的低端反映了我們認識到宏觀經濟環境可能對我們 24 年下半年的業績產生更大的影響。總而言之，基於第二季的優異表現，我們將全年營業利潤率指導上調 40 個基點。我們繼續預計下半年的營業利潤率將與 2023 年的業績基本一致。透過 40 個基點的成長，我們將 24 年全年營業利潤率提高到 18.0% 至 18.4% 的範圍，其中包括第一季以外的全年影響帶來的 60 個基點的收益期間調整。如果沒有第一季期外調整，我們全年的營業利潤率現在將在 17.4% 至 17.8% 的範圍內。

Additionally, we expect our full year interest income to be approximately $45 million and our full year effective tax rate to be approximately 25.5%. As a reminder, 2024 is a 53-week year for Williams-Sonoma, Inc, so the fourth quarter will consist of 14 weeks. 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 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.

此外，我們預計全年利息收入約為 4,500 萬美元，全年有效稅率約為 25.5%。提醒一下，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。我們將在 53 週與 53 週可比較的基礎上報告比較，所有其他同比比較將是 53 週與 52 週。

Our capital allocation plans for '24 remain unchanged. 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 driving our e-commerce leadership and supply chain efficiency. As was communicated quarterly, we're committed to returning excess cash to our shareholders through dividends and share repurchases. We will continue to pay our quarterly dividend of $0.57 per share and have $826 million remaining under our $1 billion share repurchase authorization. We will continue to opportunistically repurchase our stock to deliver returns for our shareholders.

我們 24 年的資本配置計畫維持不變。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% 的資本支出將致力於推動我們的電子商務領先地位和供應鏈效率。正如每季通報的那樣，我們致力於透過股利和股票回購將多餘的現金返還給股東。我們將繼續支付每股 0.57 美元的季度股息，並獲得 10 億美元的股票回購授權，剩餘 8.26 億美元。我們將繼續擇機回購股票，為股東帶來回報。

As we look further into the future beyond '24, we are reiterating our long-term guidance of mid- to high-single-digit revenue growth, with operating margins in the mid- to high teens. We're confident we'll continue to outperform our peers and deliver shareholder growth for these five reasons that remain consistent. Our ability to gain market share in a 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. With that, I'll open the call for questions.

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指導，營業利潤率在中高雙位數。我們相信，由於這五個始終如一的原因，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堡壘資產負債表的彈性。接下來，我將開始提問。

(Operator Instructions) Chuck Grom, Gordon Haskett.

（操作員指示）Chuck Grom、Gordon Haskett。

Hi. Thanks. Good morning. I was hoping you guys could talk about the cadence of sales throughout the quarter across banners? And also, any early readings on back-to-school, back-to-college in recent weeks?

你好。謝謝。早安.我希望你們能談談整個季度跨橫幅的銷售節奏？另外，最近幾週有關於重返校園、重返大學的早期讀物嗎？

Hi Chuck, good morning. The cadence of sales for us isn't really a relevant indicator, and I always -- I know you all love to ask the question and also how this quarter is going. But it doesn't really amount to much in terms of predicting where we're going to be. Remember, as we look to the back half, we have a big ramp in seasonal businesses. And that is not -- so what's happening now is not the same as what could happen then. And back-to-school is a great example.

嗨，查克，早安。對我們來說，銷售節奏並不是一個真正相關的指標，我總是——我知道你們都喜歡問這個問題以及本季的進展。但就預測我們將去往何處而言，它其實並沒有太大意義。請記住，當我們展望下半年時，季節性業務將大幅成長。但事實並非如此——所以現在發生的事情與那時可能發生的事情並不相同。返校就是一個很好的例子。

Innovation is a key part of our strategy and especially in our life stage and seasonal holidays, where we're seeing great response, and back-to-school is no different. It's actually one of our highlights. We've really seen our initiatives, particularly in dorm, really gain traction, and we're really gaining share in the dorm market, serving the customer with very high-quality products. It's significantly positive. We're chasing inventory. It's high margin, and it's driven by both the product in bedding also our minute meals solutions.

創新是我們策略的關鍵部分，尤其是在我們的人生階段和季節性假期中，我們看到了巨大的迴響，返校也不例外。這實際上是我們的亮點之一。我們確實看到了我們的舉措，特別是在宿舍方面的舉措，真正獲得了關注，並且我們確實在宿舍市場中獲得了份額，為客戶提供了非常高品質的產品。這是非常積極的。我們正在追逐庫存。這是高利潤率，它是由床上用品產品和我們的分鐘膳食解決方案推動的。

Bath and flooring is also driven by our exclusive collaborations such as LoveShackFancy and Roller Rabbit, which has been fantastic for that demo. And then our channel functionality, so for example, dorm functionality launched earlier on the site this year, which we think was really good for our customers to be able to consider what they would buy before they actually get into school, and we had a shareable dorm wish list, a bedding visualizer. And then retail, we've really pushed dorm at retail, both in our kids stores, our teen stores, and we did a small setup in our Pottery Barn stores to really help drive awareness to build that market share. We've also worked with partners and influencers to drive awareness and driving traffic off the Pottery Barn website to the dorm and back-to-school shop has been another critical part of what we're doing.

浴室和地板也由我們的獨家合作推動，例如 LoveShackFancy 和 Roller Rabbit，這對於該演示來說非常棒。然後是我們的頻道功能，例如，今年早些時候在網站上推出的宿舍功能，我們認為這對我們的客戶來說非常好，讓他們能夠在實際進入學校之前考慮他們會購買什麼，並且我們有一個可共享的宿舍願望清單，床上用品視覺化工具。然後是零售，我們確實在零售方面推動了宿舍，無論是在我們的兒童商店、青少年商店，還是在我們的 Pottery Barn 商店中做了一個小設置，以真正幫助提高意識，建立市場份額。我們還與合作夥伴和有影響力的人合作，提高知名度，並將流量從 Pottery Barn 網站吸引到宿舍和返校商店，這是我們正在做的另一個重要部分。

Thanks a lot. I just actually moving my daughter into college and I can tell you the dorm business is very real. Jeff, just more for you, looking ahead into the back half of the year. Any thoughts on the phasing of comps in the third and fourth quarter? And any impact with the five fewer shopping days this year? Thank you.

多謝。我剛剛把我女兒送進大學，我可以告訴你，宿舍生意是非常真實的。傑夫，對你來說，展望今年下半年。對第三季和第四季的補償有什麼想法嗎？今年購物日減少五個有什麼影響嗎？謝謝。

Yeah, let me start with the shorter holiday season. Our quick answer on that is that the impact is already embedded in our guidance. There's a lot of puts and takes on this one for us. For one, a shorter holiday season means, each day has to work harder, especially at retail. But this year's calendar with Christmas moving from Monday to Wednesday is more favorable for e-commerce.

是的，讓我從較短的假期開始。我們對此的快速回答是，影響已經體現在我們的指導中。對於這個問題，我們有很多的選擇和承擔。其一，較短的假期意味著每天都必須更加努力工作，尤其是在零售業。但今年聖誕節從週一移至週三，對電子商務更加有利。

And I think everyone knows our mix is 66% e-commerce. So that is actually a good day for us. Then when you think about the back half for us, this year is a 53-week year, so our fourth quarter has 14 weeks in it. Punchline on this is there's a lot of puts and takes for shorter holiday season, but it's in our guidance. And then as we think about the back half, as I said in my prepared remarks, the way we set up our guidance is the midpoint of our guide reflects the continuation of the first half economic and consumer dynamics through the back half.

我想每個人都知道我們的組合中有 66% 是電子商務。所以這對我們來說實際上是美好的一天。然後，當你考慮我們的後半段時，今年是 53 週的一年，所以我們的第四季有 14 週。有趣的是，較短的假期期間有很多看跌期權和看跌期權，但這在我們的指導中。然後，當我們考慮下半年時，正如我在準備好的發言中所說，我們制定指導的方式是我們指南的中點，反映了上半年經濟和消費者動態在後半段的延續。

The high end of our guide implies some acceleration in industry trends, coupled with increased traction of our growth initiatives. And if holiday proves out to be better, there could even be upside there. The low end of our guide recognizes the macroeconomic environment may have a greater impact and our results in the back half, but it's so uncertain, we provided a really wide range of guidance with those possible outcomes.

我們指南的高端意味著行業趨勢的加速，以及我們成長計畫的吸引力的增強。如果事實證明假期更好，甚至可能還有上升空間。我們指南的低端認識到宏觀經濟環境可能會產生更大的影響，我們的結果在後半部分，但它是如此不確定，我們為這些可能的結果提供了非常廣泛的指導。

Great. Thank you.

偉大的。謝謝。

Peter Benedict, Baird.

彼得·本尼迪克特，貝爾德。

Hey, guys, good morning. Thanks for taking the question. First one, just maybe, Jeff, around advertising. I mean, historically, I think you guys run in the 6.5% to 7% of sales at least on an annual basis for advertising. I know it's delevered in the first part of this year. Just curious how you're thinking about the increased investment in advertising right now? When you need to see the return on that?

嘿，夥計們，早安。感謝您提出問題。第一個，傑夫，也許是關於廣告。我的意思是，從歷史上看，我認為你們每年至少有 6.5% 到 7% 的銷售額用於廣告。我知道今年上半年就已經去槓桿化了。只是好奇您現在如何看待增加的廣告投資？什麼時候需要看到回報？

And just maybe should we expect a period where you're maybe above that 7% range for a bit as we go through this kind of period of software demand? That's my first question.

也許我們應該預期，當我們經歷這種軟體需求時期時，您可能會暫時高於 7% 的範圍？這是我的第一個問題。

Thanks, Peter. Our multi-brand portfolio is clearly an advantage in a lot of ways, but particularly in marketing. Our cross-brand customers performed significantly better than other customers. In fact, they're 4 times more valuable. And we've really been committed, as you all know, to not running a promotional business.

謝謝，彼得。我們的多品牌產品組合在許多方面顯然都是一個優勢，尤其是在行銷方面。我們的跨品牌客戶的表現明顯優於其他客戶。事實上，它們的價值是原來的四倍。如你們所知，我們確實致力於不經營促銷業務。

There's a lot of people out there that probably would push you see more comp points by running markets. We've chosen not to do that. We know having done this for a long time that the long-term investment in the fundamentals is more important than the short-term markdowns that give you an immediate pop and create all sorts of peaks and valleys, which aren't good for operations. Advertising investment, done correctly, builds customer growth, and so they also drive short-term sales. So it's a short-term sales and a long-term play with new customers.

有很多人可能會促使你透過運行市場來看到更多的補償點。我們選擇不這樣做。我們已經這樣做了很長時間，知道對基本面的長期投資比短期降價更重要，短期降價會讓你立即流行並創造各種高峰和低谷，這不利於營運。如果做得正確，廣告投資可以促進客戶成長，因此也可以推動短期銷售。所以這是一個短期銷售和與新客戶的長期合作。

So like anything else we do, we are constantly looking for opportunities to spend the last dollar more effectively, and that changes season by season, brand by brand and marketing program by marketing program. Our loyalty program is another key part of this and very effective. These are, again, our best customers, and we have the credit card program, and we also have the noncredit card key rewards program, which has been very effective. I think the last thing that we are doing that is, I think, a competitive advantage and something that we're doing more of than we did last year substantially is amplifying our creator-led content. So creator-led content, YouTube, TikTok, Meta, is helping us reach new audiences and is very effective.

因此，就像我們所做的其他事情一樣，我們不斷尋找機會更有效地花掉最後一美元，而且這種情況隨著季節、品牌和行銷計劃的不同而變化。我們的忠誠度計劃是其中的另一個關鍵部分，並且非常有效。這些都是我們最好的客戶，我們有信用卡計劃，我們也有非信用卡關鍵獎勵計劃，該計劃非常有效。我認為我們正在做的最後一件事是競爭優勢，我們比去年做的更多的事情是擴大我們創作者主導的內容。因此，創作者主導的內容（YouTube、TikTok、Meta）正在幫助我們吸引新受眾，而且非常有效。

It's an area that we're building in-house, and we're really excited about our leadership position as we go forward because we think this is very, very relevant for our customers.

這是我們正在內部建立的一個領域，隨著我們的前進，我們對我們的領導地位感到非常興奮，因為我們認為這與我們的客戶非常非常相關。

That's helpful. Thanks, Laura. And my follow-up question is around kind of freight costs in that environment. I'm just curious, maybe your view as we maybe turn to '25 freight rates have been coming up. Does that -- how does that kind of play into the -- maybe the margin structure as you think about next year? And remind us just maybe your exposure to China and with all the talk of potential tariffs, that type of thing, just maybe level set us on that front. Thanks so much.

這很有幫助。謝謝，勞拉。我的後續問題是圍繞著這種環境下的貨運成本。我只是好奇，也許您的看法是我們可能會轉向「25 運費」。正如您明年所考慮的那樣，這會如何影響利潤結構？並提醒我們，也許您對中國的接觸以及所有關於潛在關稅的討論，諸如此類的事情，也許只是讓我們在這方面處於水平。非常感謝。

Yeah, Peter, good morning. A couple of questions in there. So first one on ocean freight, yes, we're not seeing an impact from higher spot market and higher spot market rates for -- on our ocean freight were mostly insulated from the fluctuations in the spot market with our contracted rates. And here's the thing. As you know, one of our competitive advantages is our global supply chain.

是的，彼得，早安。裡面有幾個問題。第一個是關於海運，是的，我們沒有看到更高的現貨市場和更高的現貨市場費率的影響——我們的海運運費基本上不受現貨市場波動的影響。事情是這樣的。如您所知，我們的競爭優勢之一是我們的全球供應鏈。

We're the 11th largest container importer into the United States, so we have scale and relationships others do not. So while there might be challenges in the broader market, especially with smaller competitors, it's not been a factor for us. And any impact is already embedded in our results and our guidance. As far as China goes, we significantly reduced our China source goods from the last time this came up back in 2018. Back then, it was 50% of all our imports were from China.

我們是美國第 11 大貨櫃進口商，因此我們擁有其他公司所沒有的規模和關係。因此，儘管更廣泛的市場可能會面臨挑戰，尤其是規模較小的競爭對手，但這對我們來說並不是一個因素。任何影響都已融入我們的結果和指導中。就中國而言，與2018年上次出現這種情況相比，我們大幅減少了中國來源的商品。

Now that number is down to 25%. And of that 25%, a third of them already have a Trump tariff on them, which we've been paying and are still on them. So the fact that if this does come up and tariffs are expanded, we're prepared to reduce it further. We've mapped out a category-by-category plan to reduce China sourcing if the landscape changes. And I think the important point here is, with 90% of our products are proprietary designed and exclusively made for our brands, and we operate our own in-house best-in-class global sourcing operation with 12 overseas offices, it's our own boots on the ground, managing sourcing decisions, production, and shipping. So if the landscape changes, we're well positioned to pivot.

現在這個數字已降至 25%。在這 25% 的產品中，有三分之一已經對它們徵收川普關稅，我們一直在支付這些關稅，而且仍在對它們徵收關稅。因此，事實上，如果這種情況確實出現並且關稅擴大，我們準備進一步降低關稅。我們已經制定了逐個類別的計劃，以在情況發生變化時減少中國採購。我認為這裡重要的一點是，我們90% 的產品都是為我們的品牌專有設計和專門製造的，而且我們在內部擁有一流的全球採購業務，設有12 個海外辦事處，這是我們自己的靴子現場管理採購決策、生產和運輸。因此，如果情勢發生變化，我們就能很好地進行調整。

Good stuff. Thanks so much.

好東西。非常感謝。

Cristina Fernández, Telsey Advisory Group.

Cristina Fernández，特爾西諮詢小組。

Hi, good morning. I wanted to see if you can talk about any changes in customer behavior that you saw this quarter so far here in August? Several retailers have talked about the consumer being more hesitant, less involved during non-peak periods, more resistant to price. Are you seeing any of those factors in your trends?

嗨，早安。我想看看您是否可以談談本季到目前為止您在八月看到的客戶行為的任何變化？有零售商表示，消費者在非尖峰時段較為猶豫、較少參與，對價格較為抵觸。您在您的趨勢中看到了這些因素嗎？

Thanks for the question, Cristina. We're constantly setting all the customer metrics to find anything that we can read into and build upon. It's interesting, price actually picked up from Q1, not as much as we wanted it to, but it's better than it was. And the other areas are still better than furniture. So leading to the strategy of really focused on the seasonal holidays where no one else rally plays and these life stages, while the consumer is still not really buying a lot of new houses.

謝謝你的提問，克里斯蒂娜。我們不斷地設定所有客戶指標，以找到我們可以解讀和建立的任何內容。有趣的是，價格實際上從第一季開始有所回升，雖然沒有我們想要的那麼多，但比原來要好。而且其他方面還是比家具好。因此，導致了真正專注於沒有其他人集會的季節性假期和這些人生階段的策略，而消費者仍然沒有真正購買大量新房。

So in terms of price points, interesting question. We have a lot of newness that's working. It's very exciting, particularly in West Elm, where we have the most amount of newness. And it's not in low price points. It's in the medium to high price points, and that's also really, I think, a good piece of information for us.

所以就價格而言，這是一個有趣的問題。我們有很多正在發揮作用的新鮮事物。這非常令人興奮，特別是在西榆樹，那裡有最多的新鮮事物。而且它的價格並不低。它的價格處於中等到高位，我認為這對我們來說也是一個很好的訊息。

We are giving the customer great value. So we're not trying to develop things at higher price points, we're trying to develop the best value products at every price point. And I said it before, but the truth is where we have a lot of innovation, our prices are the best in the market and no one has tried to copy us yet on the newness, which is why we're pushing newness as a key strategy in the back half as a percent to total. And as we continue to have these seasons click by and get confidence on the newness, we can buy more into it. And we usually have a pretty long cycle on that product growing before it declines.

我們為客戶提供巨大的價值。因此，我們並不是試圖開發更高價位的產品，而是試圖在每個價位開發最有價值的產品。我之前說過，但事實是我們有很多創新，我們的價格是市場上最好的，而且還沒有人試圖在新穎性上模仿我們，這就是為什麼我們將新穎性作為關鍵後半部分的策略佔總數的百分比。隨著這些季節的不斷流逝並對新鮮感充滿信心，我們可以購買更多。在該產品下降之前，我們通常會有一個相當長的成長週期。

Thanks. And then my follow-up is for Jeff. On the operating margin for the quarter, I think last call, you had talked about being flattish. It was up 160 basis points. Where did the upside come from this quarter? And why wouldn't some of those continue in the back half?

謝謝。然後我的後續行動是傑夫。關於本季的營業利潤率，我認為上次電話會議中，您曾談到持平。上漲了 160 個基點。本季的上漲空間來自哪裡？為什麼其中一些不會在後半段繼續？

Yeah. Thanks for asking that, Cristina. Q2 operating margin exceeded our expectations for three reasons. The first is in merchandise margins, which were stronger than anticipated, driven by our focus on full-price selling. We continue to see a positive customer response to our consistent pricing and focus on selling and service versus price.

是的。謝謝你這麼問，克里斯蒂娜。第二季營業利益率超出我們的預期有三個原因。首先是商品利潤率，由於我們專注於全價銷售，商品利潤率比預期強。我們繼續看到客戶對我們一致的定價做出了積極的反應，並專注於銷售和服務而不是價格。

The second thing is our supply chain efficiency, also came in better, really attributable to our commitment to full price selling, smoothing out the peaks and troughs driven by promotional activity. This is delivering significant cost savings from more consistent operations across our manufacturing, operating, and delivery expenses. And third, we deleveraged advertising expense less in Q2 than in Q1. I mean, as Laura said before, we continue to evaluate our spend and adjust weekly as we see the effectiveness. Here's what I'd like you to remember as we continue to deliver strong profitability despite the tough environment for home furnishings.

第二件事是我們的供應鏈效率也變得更好，這實際上歸功於我們對全價銷售的承諾，平滑了促銷活動驅動的高峰和低谷。透過我們在製造、營運和交付方面更加一致的運營，可以大幅節省成本。第三，我們第二季的廣告費用去槓桿化程度低於第一季。我的意思是，正如勞拉之前所說，我們將繼續評估我們的支出，並根據效果每週進行調整。儘管家居環境嚴峻，但我們仍將繼續提供強勁的盈利能力，因此我希望您記住以下幾點。

Brian Nagel, Oppenheimer.

布萊恩·內格爾，奧本海默。

Hi, good morning. Thanks for taking my question. So the first question I want to ask is just with respect to industry-wide promotions. You've done a great job of holding the line on site-wide promotions at Williams, but throughout the space, we keep on hearing about signals of a more promotional environment. So the question I'm asking is, are you seeing a more promotional environment broadly? And then are you able to quantify what impacts, if any, that's happened upon your business at this point?

嗨，早安。感謝您提出我的問題。所以我想問的第一個問題是關於全行業的促銷活動。你們在威廉斯的全站促銷活動中做得很好，但在整個空間中，我們不斷聽到更多促銷環境的訊號。所以我要問的問題是，您是否看到了更廣泛的促銷環境？然後您是否能夠量化此時對您的業務產生的影響（如果有）？

Yeah. Thanks for the question, Brian. We continue to see consistent high levels of promotions in the marketplace in also the forms from site-wide promotions, free shipping, reduction of prices across the board, double rewards, all of it. And we have played those games and know that they don't work, and you're competing with yourself more than you are with your peers and your competitors. It's really important that you give your customer great value.

是的。謝謝你的提問，布萊恩。我們繼續看到市場上持續高水準的促銷活動，形式包括全站促銷、免費送貨、全面降價、雙倍獎勵等等。我們玩過這些遊戲，知道它們不起作用，而且你與自己的競爭比與同行和競爭對手的競爭更多。為客戶提供巨大的價值非常重要。

They look at that price and they know what other things cost similarly to it in the market. But the up and down to get a short-term pop that drives a short-term comp is not a good way to run your business. And so we are committed, as I said before, to running our business without those high levels of promotion. And actually, as much as we've been saying this for the past couple of years, we're still pushing this out of our base. And so in Q1 and Q2, we significantly improved our regular price percent to total, and our regular price comps are significantly better than the markdown comps.

他們查看這個價格，就知道市場上其他與之類似的東西的價格是多少。但透過上下波動來獲得短期的成長並推動短期的業績成長並不是經營業務的好方法。因此，正如我之前所說，我們致力於在沒有高水準促銷的情況下經營我們的業務。事實上，儘管我們過去幾年一直在這麼說，但我們仍在將其排除在外。因此，在第一季和第二季度，我們顯著提高了常規價格佔總價格的百分比，並且我們的常規價格比較明顯優於降價比較。

That's helpful. Then the second question I have, recognizing we're not necessarily talking about the cadence of the business through the quarter, but -- and it sounds like given your commentary and the adjustments to the top line guidance in the balance here, the business is weakened, or at least tracking weaker than you initially anticipated. Can you help us understand if there's any specific areas you seeing incremental weakness within demand?

這很有幫助。然後是我的第二個問題，認識到我們不一定是在談論整個季度的業務節奏，但是 - 聽起來考慮到您的評論以及對此處平衡中的頂線指導的調整，業務是減弱，或者至少追蹤比您最初預期的要弱。您能否幫助我們了解您是否發現任何特定領域的需求逐漸疲軟？

So the reality is our guidance, as Jeff mentioned, has a wide range. And it's that we expected the back half to accelerate. I think we all thought we'd have an interest rate cut or at least one or two by now, which we haven't seen, right? So instead of hoping for housing to turn around, we put the range together to reflect if the back half is (inaudible) to the first half. And that seems, I know, conservative because of the multiyear comps getting easier in the back half.

所以現實是，正如傑夫所提到的，我們的指導範圍很廣。我們預計後半段會加速。我想我們都認為現在會降息或至少降息一兩次，但我們還沒有看到，對吧？因此，我們不希望房屋市場出現好轉，而是將範圍放在一起，以反映後半部（聽不清楚）是否與前半部相同。我知道，這似乎是保守的，因為多年的比較在後半段變得更加容易。

But we just thought it was prudent, given the uncertainty in the macro, to reduce the top line so that we're not pressured to take promos to hit the number. We want to run this business for the long term, and that's what we've been doing, and you're seeing the continued performance on the bottom line. And I'll just say this, we've said before, can you imagine what this thing looks like when you get some positive comps. And the best way for me to describe it is our operating model is a coiled spring.

但我們只是認為，考慮到宏觀經濟的不確定性，減少營收是謹慎的做法，這樣我們就不會被迫採取促銷來達到這個數字。我們希望長期經營這項業務，這就是我們一直在做的事情，而且您會看到盈利的持續表現。我只想說，我們之前說過，你能想像當你得到一些正面的補償時這件事會是什麼樣子。對我來說最好的描述是我們的操作模型是螺旋彈簧。

Appreciate all the color. Thank you.

欣賞所有的顏色。謝謝。

Simeon Gutman, Morgan Stanley.

西蒙古特曼，摩根士丹利。

Hi there. Good morning, everyone. I have a question. I guess this is a age-old question. Any difference in posture thinking about the mix between sales and promotion in terms of stimulating sales and given that the backdrop seems to be getting more promotional? Thanks.

你好呀。大家早安。我有一個問題。我想這是一個古老的問題。考慮到銷售和促銷的組合在刺激銷售方面以及考慮到促銷力度似乎越來越大的背景下，態度上有什麼不同嗎？謝謝。

Absolutely not, but we are on offense with our product innovation and our marketing.

絕對不是，但我們對產品創新和行銷感到不滿。

And Simeon, I would just add, I talked about it in my prepared remarks and answering Christina's question, but by not running the promos like we did in smoothing out the peaks and troughs of the promotional activity, it's really driving improved customer service, shorter lead times and much more efficient operations across our entire supply chain, which is really flowing through to the bottom line.

西蒙，我想補充一下，我在準備好的發言中談到了這一點，並回答了克里斯蒂娜的問題，但通過不像我們在平滑促銷活動的高峰和低谷時那樣進行促銷，它確實推動了客戶服務的改善，縮短了時間我們整個供應鏈的交貨時間和營運效率大大提高，這確實會影響利潤。

And if I can ask a quick follow-up, the runway for merch margins, specifically related to supply chain or transport, I don't know if I missed -- I may have missed it earlier in the call, but I thought, by the second quarter, it would sort of reach it's, I don't know, it's peak or it's max, and then it would start to wane. Is that still about the right way to think about it?

如果我可以詢問快速跟進，商品利潤的跑道，特別是與供應鏈或運輸相關的，我不知道我是否錯過了——我可能在電話會議的早些時候就錯過了，但我想，通過第二季度，它會達到，我不知道，它的峰值或最大值，然後它會開始減弱。這仍然是正確的思考方式嗎？

It is the right way to think about it. And while we don't guide to specific lines, we are guiding that our operating margin in the back half will be flat with 2023 really because of some of the benefits that we had in the front half. (technical difficulty) we were up against the impact of the pandemic-related ocean freight runoff. That was worth about 200 basis points, good guide in the first half. And then our focus on full price selling really kicked in, in the back half of '23.

這是正確的思考方式。雖然我們沒有提供具體的指導，但我們預計下半年的營業利潤率將與 2023 年持平，這實際上是因為我們在上半年獲得了一些好處。 （技術難度）我們面臨與大流行相關的海運徑流的影響。這價值約 200 個基點，是上半年的良好指引。然後我們真正開始關注全價銷售，是在 23 世紀後半葉。

So we have that upside by focusing on that in the front half. And in fact, if we look at our percentage of full price selling in Q2 of '24, it's about the same rate as it was in Q3 '23. So that dissipates as well. So like we said, we were up against some easier compares in the front half on the margin line that starts to dissipate in the back half, which is why we're giving that guidance on operating margin for the back half.

因此，我們透過專注於前半部分來獲得優勢。事實上，如果我們看一下 24 年第二季全價銷售的百分比，就會發現它與 23 年第三季的比率大致相同。所以這也消散了。正如我們所說，我們在前半部分的利潤線上遇到了一些更容易的比較，而這些比較在後半部分開始消失，這就是為什麼我們對後半部分的營業利潤率給出指導。

Okay. Thank you. Good luck.

好的。謝謝。祝你好運。

Max Rakhlenko, TD Cowen.

馬克斯·拉赫倫科，TD·考恩。

Hey, good morning. So first, Laura, can you discuss any learnings about your shoppers reactions as you pull back on promotions? Are shoppers reacting how you thought that they would? For instance, is your PB shopper may be a little bit more price conscious than you thought, or any other callouts?

嘿，早安。首先，勞拉，您能否討論一下在您取消促銷活動時購物者的反應？購物者的反應是否與您想像的一樣？例如，您的 PB 購物者是否比您想像的更注重價格，或者是否有任何其他標註？

Yeah, as I said earlier, there's not lot to read there because the newness that's in the mid-price points are really working. We're not seeing a trade down. Furnitures is better than it was, but furniture is still soft, right? And it's a big portion of both the West Elm and Pottery Barn businesses, which is why the comp complexion is very different in those versus the more life stage kids and teen brand and also Williams-Sonoma. So yeah, there's nothing really to read into that.

是的，正如我之前所說，那裡沒有太多可讀的內容，因為中等價位的新東西確實很有效。我們沒有看到交易下跌。家具比以前好多了，但家具還是軟的，對吧？它是 West Elm 和 Pottery Barn 業務的重要組成部分，這就是為什麼這些品牌與更多生命階段的兒童和青少年品牌以及 Williams-Sonoma 的競爭格局非常不同。所以是的，沒有什麼值得深究的。

What we do see is that they're not waiting for promotions to the point that they don't -- they're not worried that they're going to feel down if they don't actually get the promotion, they can buy it when they need it. And our sales associates are thrilled that they can sell with confidence and not always be looking into a promo calendar to see when the next sale is.

我們確實看到的是，他們並沒有等待促銷到他們沒有等待的程度——他們並不擔心如果他們實際上沒有得到促銷，他們會感到沮喪，他們可以購買它當他們需要的時候。我們的銷售人員很高興他們可以充滿信心地銷售，而不必總是查看促銷日曆來了解下一次銷售的時間。

Yeah. I think Laura on the fact that -- yeah, when we run promotions, we're really competing with ourselves a lot of time. And I think many of you heard me talk about the concept of shift versus lift and how much of the promotions are really incremental versus just moving it around and incentivizing the customer to wait for it to go on sale. So now we can really focus on serving the customers, selling to them, helping them with their design project. And the customer is not waiting for that next promotion, they're engaging on the design side.

是的。我認為勞拉的事實是——是的，當我們進行促銷活動時，我們實際上花了很多時間與自己競爭。我想你們很多人都聽我談論過轉移與提升的概念，以及有多少促銷是真正增量的，而不是只是移動它並激勵客戶等待它開始銷售。所以現在我們可以真正專注於為客戶服務、向他們銷售、幫助他們完成設計專案。客戶不是在等待下一次促銷，而是在參與設計方面。

Got it. That's helpful. And then, Jeff, maybe can you bridge the full year EBIT margin guide of 17.4% to 17.8%, and then the long-term margin guide of mid- to high teens? Sort of what would need to happen and the key drivers in a bull versus bear case?

知道了。這很有幫助。然後，Jeff，也許您可以將全年 EBIT 利潤率指引值 17.4% 至 17.8% 與中高青少年的長期利潤率指引值連結起來？需要發生什麼事以及多頭市場與熊市狀況的關鍵驅動因素？

Well, look, our long-term operating margin guidance is mid to high teens. And our guidance for this year puts us right back in the middle of that range. Certainly, sales are accelerating. We expect possibly some more margin expansion, but we've provided a range because there's a lot of variables in there.

嗯，看，我們的長期營業利潤率指引是中高位。我們今年的指導使我們回到了這個範圍的中間。當然，銷售正在加速。我們預期利潤率可能會進一步擴大，但我們提供了一個範圍，因為其中存在許多變數。

And we're pretty confident in our ability to sustain this profitability. We've demonstrated it -- last year, we delivered at [64]. This year, we're guiding in the mid-17. So this is sustainable, and we're confident in our operating margin going forward.

我們對維持這種獲利能力的能力非常有信心。我們已經證明了這一點——去年，我們在 [64] 上實現了這一點。今年，我們將在 17 月中旬進行指導。所以這是可持續的，我們對未來的營業利潤率充滿信心。

Great. Thanks a lot, and good luck second half.

偉大的。非常感謝，祝下半年好運。

Marni Shapiro, Retail Tracker.

Marni Shapiro，零售追蹤者。

Hey, guys. Congrats on some great execution in a choppy environment. Laura, I wanted to focus on some of the newness that you keep highlighting because it still -- not only is there a lot of new products like Roller Rabbit, for example, but it's the way you're attacking it. So I know like at UNC, you had an entire event at one of the buildings with Roller Rabbit. Or with RHODE, I was just around in social media about it. That was really, really great. And it feels like that mix between your merchandising and your marketing has really come together.

嘿，夥計們。恭喜您在動盪的環境中取得了出色的執行力。勞拉，我想專注於您一直強調的一些新穎性，因為它仍然存在 - 不僅有很多新產品，例如 Roller Rabbit，而且是您攻擊它的方式。所以我知道就像在北卡羅來納大學一樣，你在其中一棟大樓裡與 Roller Rabbit 一起舉辦了一場完整的活動。或者對於 RHODE，我只是在社交媒體上談論它。那真是太棒了。感覺你的推銷和行銷之間的結合真的融合在一起了。

So I'm curious, was that a change? Or am I just getting hit with it? Is it bringing new shoppers into these brands? Is it bringing them in with more frequency? And how should we think about this for the back half of the year?

所以我很好奇，這是改變嗎？或者我只是受到了打擊？它是否為這些品牌帶來了新的購物者？是否會更頻繁地引入他們？下半年我們該如何思考這個問題？

Thank you so much for the question. Yes, newness and innovation are really key parts of our strategy to drive growth, and we've seen a really strong response to newness. In West Elm, we've talked about newnesses checking across all categories, in particular in furniture. And in fact, we've seen double-digit positive comps in both West Elm summer and fall new furniture introductions. Now why you're not seeing that roll into the bigger number yet is because it's still a small percent of total because you want to make sure your newness is working before you bet the farm on it.

非常感謝你的提問。是的，新穎性和創新確實是我們推動成長策略的關鍵部分，我們已經看到了對新穎性的強烈反應。在 West Elm，我們討論了所有類別的新穎性檢查，特別是在家具方面。事實上，我們在 West Elm 夏季和秋季推出的新家具中都看到了兩位數的正面表現。現在，為什麼你還沒有看到更大的數字，因為它仍然只佔總數的一小部分，因為你想在你把農場押注之前確保你的新事物正在發揮作用。

We've had some great collaborations in West Elm. You touched on Roads. Growth this year is double last year. We introduced Marcus Samuelsson, who's an amazing chef who has incredible furniture designs that we've introduced and that's also been a great one. In Pottery Barn, we're seeing a good response to our newness there too, especially in furniture and the seasonal decorating, which we're launching earlier than we've ever launched before. I am so thrilled to see people scooping up Christmas this early. They also have some great new collaborations in the hopper and are going to have an increased amount of collaborations next year.

我們在西榆樹進行了一些很棒的合作。你談到了道路。今年的成長是去年的兩倍。我們介紹了馬庫斯·薩繆爾森（Marcus Samuelsson），他是一位出色的廚師，擁有我們所介紹的令人難以置信的家具設計，這也是一個很棒的設計。在Pottery Barn，我們也看到了人們對我們的新事物的良好反應，特別是在家具和季節性裝飾方面，我們推出的時間比以前推出的時間要早。我很高興看到人們這麼早就過聖誕節。他們還在漏斗中進行了一些很棒的新合作，並且明年的合作數量將會增加。

Kids and teens have always been, in our company, our leader in collaborations and just amazing from the license programs that we run, the Hello Kitty to incredible designers like Roller Rabbit and LoveShackFancy. They've really been able to hit the nail on the head with what their consumer wants at every life stage. And kids is different than teens, but we're covering both, and you can really see that we're on trend by the results in dorm.

在我們公司，兒童和青少年一直是我們合作的領導者，從我們運行的許可計劃、Hello Kitty 到 Roller Rabbit 和 LoveShackFancy 等令人難以置信的設計師，他們都令人驚嘆。他們確實能夠一針見血地滿足消費者在每個生命階段的需求。孩子們與青少年不同，但我們涵蓋了兩者，從宿舍的結果來看，您確實可以看到我們處於趨勢之中。

Williams-Sonoma, the branded product in Williams-Sonoma is doing incredibly well. I'll give you one very specific example in Williams-Sonoma, which is our Williams-Sonoma branded cutlery. Higher margin, obviously, than the names out there that we all are familiar with and really rivaling them in volume. And there's also a lot of exclusives that we have, and launch leads that we have with our key electric partners and premium cookware. The Tucci collaboration, by the way, continues to be phenomenal, and we are not done with the innovation that Tucci is going to be bringing, not just for the back half, but through next year.

威廉斯索諾瑪的品牌產品威廉斯索諾瑪的表現非常好。我將在威廉斯-索諾瑪給您一個非常具體的例子，這是我們的威廉斯-索諾瑪品牌餐具。顯然，利潤率比我們都熟悉的品牌更高，而且在銷量上確實可以與它們相媲美。我們還有很多獨家產品，以及我們與主要電氣合作夥伴和優質炊具的合作推出的線索。順便說一句，Tucci 的合作仍然非常出色，我們還沒有完成 Tucci 將帶來的創新，不僅是在後半段，而且是在明年。

And so we're excited about our -- we really excited about our back half lineup in Williams-Sonoma. We can't go into -- I mean I'd really like to talk about some of those things a little bit more, but I I'm always cautious about competition and not giving away too much information. But the punchline is, we have seen a very strong response to newness and collaborations.

因此，我們對威廉斯-索諾瑪的後半陣容感到非常興奮。我們不能深入——我的意思是我真的很想多討論其中一些事情，但我總是對競爭持謹慎態度，不會透露太多資訊。但最重要的是，我們看到了對新事物和合作的強烈反應。

And Marni, you are right. We are doing things differently with our creator-led content about collaborations. When you combine a collaboration with an influencer on Tiktok, you have magic. And we are continuing to build that scale and really draw in new customers through those channels. So thank you.

瑪尼，你是對的。我們對創作者主導的合作內容採取了不同的做法。當你與 Tiktok 上的影響者合作時，你就會產生魔力。我們正在繼續擴大規模，並透過這些管道真正吸引新客戶。所以謝謝你。

Seth Basham, Wedbush Securities.

塞思‧巴沙姆 (Seth Basham)，韋德布希證券公司。

Thanks a lot, and good morning. My first question is just making sure I understand some of the moving pieces of the margin outlook, obviously, expecting a lower sales performance through the balance of the year, but you're holding your back half margin guidance. So Jeff, maybe you could give us some color as to where you see the upside, so to speak, on margins relative to a couple of months ago? What areas, whether it be deployments of gross margin or SG&A? Thanks.

非常感謝，早安。我的第一個問題是確保我了解利潤率前景的一些變化因素，顯然，預計今年餘下的銷售業績會較低，但你保留了一半的利潤率指導。那麼傑夫，也許你可以告訴我們一些關於你所看到的上行空間的信息，可以說，相對於幾個月前的利潤率？哪些領域，是毛利率的部署還是SG&A？謝謝。

Good morning, Seth. So on the operating margin outlook for the back half, we've consistently said all year that we anticipate that our back half operating margins would be flat year over year. What we've done this quarter is we've raised based upon our Q2 outperformance. In terms of the puts and takes on margin, we don't necessarily guide the individual lines, but we will give you some color commentary like I did before. The gross margin, some of the benefits that we had coming at us in the front half start to wind down in the back half.

早安，賽斯。因此，關於下半年的營業利潤率前景，我們全年一直表示，我們預計下半年的營業利潤率將與去年同期持平。我們本季所做的是基於第二季的優異表現而籌集資金。就保證金的看跌期權和認購期權而言，我們不一定會指導各個行，但我們會像我之前那樣為您提供一些彩色評論。毛利率，我們在前半段獲得的一些好處在後半段開始逐漸減少。

That includes the supply chain headwinds we're up against in the first half, which, as I said before, it was worth about 200 basis points. And then we start lapping the improved promos in the back half. So we see that as being essentially flat. And then just overall, this is true for our entire guidance is the macroeconomic uncertainty. We're taking a very prudent approach to our back half guidance given the macroeconomic backdrop.

這包括我們在上半年面臨的供應鏈逆風，正如我之前所說，其價值約為 200 個基點。然後我們開始在後半部進行改良的宣傳片。所以我們認為這基本上是持平的。總的來說，對於我們的整個指導來說，宏觀經濟的不確定性確實如此。鑑於宏觀經濟背景，我們對下半年指引採取非常謹慎的態度。

And if things are better, and we see some better performance in holiday, we could surprise the upside. But at the same time, if the macroeconomic environment is more challenging, we'll be more at the low end of our guidance.

如果情況好轉，並且我們在假期中看到更好的表現，我們可能會驚訝於上行空間。但同時，如果宏觀經濟環境更具挑戰性，我們的指導將更加偏低。

That's helpful color. So just to make sure I understood you, you're looking for gross margins to be flattish year-over-year in the back half, [mostly] SG&A the same. What areas of SG&A do you have the opportunity to reduce in a slower sales environment? Are you talking primarily variable labor and advertising? Or is there anything else? Thank you.

這是有用的顏色。因此，為了確保我理解您的意思，您希望下半年的毛利率與去年同期持平，[大部分] SG&A 相同。在銷售放緩的環境中，您有機會減少哪些領域的銷售、管理和管理費用？您主要談論的是可變勞動力和廣告嗎？或是還有其他什麼嗎？謝謝。

Yeah. I mean, look, Seth, we don't guide individual lines and we do that just got top line and operating margins that give us the flexibility to pull the levers we need to deliver results. And as you've seen, we know how to deliver results. In terms of (technical difficulty) we have, certainly, ad cost is flexible, as Laura mentioned before. We evaluate this on almost a weekly basis. depending upon the returns we're seeing and the effectiveness of the advertising.

是的。我的意思是，聽著，塞斯，我們不指導單獨的生產線，我們這樣做只是為了獲得頂線和營業利潤率，這使我們能夠靈活地拉動我們需要的槓桿來實現結果。正如您所看到的，我們知道如何交付成果。就（技術難度）而言，我們當然可以，廣告成本是靈活的，正如勞拉之前提到的。我們幾乎每週都會對此進行評估。取決於我們看到的回報和廣告的有效性。

And then our employment, like I've said many times before and in my prepared remarks, our employment is largely variable. The majority of our employment is in our stores, our distribution centers and our customer care centers, and we can flex that in line with top line trends as things evolve.

然後我們的就業，就像我之前多次說過的，在我準備好的發言中，我們的就業在很大程度上是可變的。我們的員工大多在我們的商店、配送中心和客戶服務中心，隨著情況的發展，我們可以根據營收趨勢靈活調整這些員工。

So I think the punchline here is, we're guiding flat operating margin guidance in the context of a very uncertain macroeconomic environment, and we're taking a very prudent approach with this guidance. And we're giving ourselves the flexibility to pull levers as we need to deliver the results.

因此，我認為這裡的要點是，在宏觀經濟環境非常不確定的背景下，我們正在指導持平的營業利潤率指導，並且我們對此指導採取了非常謹慎的方法。當我們需要交付結果時，我們給予自己拉動槓桿的靈活性。

Makes sense. Thanks.

有道理。謝謝。

Steven Zaccone, Citi.

史蒂文·扎科內，花旗銀行。

Great. Good morning. Thanks very much for taking my question. I was going to focus a little bit more on the medium to longer term because understandably, the macro is challenging for the category. But as we start to see demand recover, right? We're at a point where this business has done very well on a merchandise margin and overall selling margin. What's the opportunity going forward? Presumably, you've pulled back from promotions in the business, why can't the gross margin rate for this business to be much higher as you start to see demand recover?

偉大的。早安.非常感謝您提出我的問題。我將更專注於中長期，因為可以理解的是，宏觀經濟對該類別來說是具有挑戰性的。但當我們開始看到需求復甦時，對嗎？我們目前的業務在商品利潤率和整體銷售利潤率方面都表現出色。未來有什麼機會？想必，您已經取消了該業務的促銷活動，為什麼當您開始看到需求復甦時，該業務的毛利率不能更高？

Great question. I would say that housing is clearly a big driver of furniture sales. And we all know housing is about the worst it's been. But at the same time, there's a lot of people calling to the bottom here. And hopefully, we see an interest rate and multiple cuts in the next six months.

很好的問題。我想說，住房顯然是家具銷售的一大推手。我們都知道住房狀況是有史以來最糟糕的。但同時，這裡也有很多人在探底。希望我們能在未來六個月內看到升息和多次降息。

Could take a little bit of time for that to flow through, but when people feel better, they tend to shop more, especially in our categories for their homes. And I really -- I said it before, but we want flexibility because we always want to give the customer great value, right? So we don't want to overprice products. We want to make sure that our brands are accessible. We want people to be able to come and shop with us and across our brands not be so expensive that it's a very small group of people.

這可能需要一點時間才能體現出來，但當人們感覺更好時，他們往往會購買更多商品，尤其是在我們的家居類別中。我真的 - 我之前說過，但我們想要靈活性，因為我們總是想為客戶提供巨大的價值，對嗎？所以我們不想對產品定價過高。我們希望確保我們的品牌易於使用。我們希望人們能夠來我們這裡購物，並且我們的品牌的價格不要太貴，以至於只有一小部分人。

So we hold that back to say there is a point at which you don't want to raise the margin too high and not be competitive. On the other hand, we're delivering this incredible margin against negative sales, negative sales a couple of years running here. So can you imagine what this looks like when the sales are flat to positive. I said it before, operating model is a coiled spring. It's very exciting to be sitting here knowing that we have built an organization with structural margin profitability profiles and a lot of innovation and capacity to grow much bigger than we are today without huge step-up investments.

因此，我們保留這一點是為了說，在某個點上，您不想將利潤率提高得太高，從而失去競爭力。另一方面，我們在連續幾年負銷售的情況下提供了令人難以置信的利潤。那你能想像當銷售額持平到正值時會是什麼樣子嗎？我之前說過，操作模型是螺旋彈簧。坐在這裡非常令人興奮，因為我們知道我們已經建立了一個具有結構性利潤盈利能力和大量創新能力的組織，並且有能力在沒有巨額後續投資的情況下發展得比今天更大。

This concludes the question-and-answer session. I will turn the call to Laura for closing remarks.

問答環節到此結束。我將請勞拉致閉幕詞。

Yeah. Well, thank you all for joining us. We are entering our favorite time of the year, which is the holidays. And I'll remind you that Halloween is right around the corner, as is Thanksgiving, Christmas, and Hannukah, and the New Year. So I hope if you are out there in our stores and seeing all the great product lineups, we are very excited about what we have out there, and I look forward to talking to you next time. So thank you for your support. Appreciate it.

是的。好的，謝謝大家加入我們。我們正在進入一年中我們最喜歡的時間，那就是假期。我會提醒您，萬聖節即將到來，感恩節、聖誕節、光明節和新年也即將到來。因此，我希望如果您在我們的商店看到所有出色的產品陣容，我們會對我們現有的產品感到非常興奮，我期待下次與您交談。所以感謝您的支持。欣賞它。

This concludes today's conference. We thank you for joining. You may now disconnect the line.

今天的會議到此結束。我們感謝您的加入。現在您可以斷開線路。