Company and Industry Summary Company Overview - The company discussed in the conference call is 滔搏 (Tao Bo), which operates in the retail and sportswear industry, focusing on both online and offline sales channels [2][3]. Key Points and Arguments Industry Performance - The discount rate in Q2 deepened year-on-year, with online growth driven by efficiency improvements and exploration of new sales scenarios such as instant retail and Xiaohongshu, while offline traffic remains under pressure [2][3]. - Inventory management remains robust, with a stock-to-sales ratio maintained at 4-5 months, although the age structure of inventory needs improvement [2][3]. - The company is not participating in ineffective online price competition but aims to connect online capabilities with offline foundations through initiatives like the "one store at a time" plan [2][5]. Online and Offline Sales Dynamics - Online sales have shown rapid growth, contrasting with the slower performance of offline channels, leading to increased overall discount pressure [3][4]. - The company has achieved significant progress in instant retail, connecting over 3,000 stores across major platforms [2][6]. - The overall discount situation is influenced by various factors, including channel inventory and the opening of online functionalities in stores [4]. Market Trends and Consumer Preferences - The U.S. market is recovering, with functional and professional products regaining consumer interest. The company has introduced new versions of its products, such as the 麦柔 18 series, which includes color iterations and a Plus version [7]. - The running market has substantial growth potential, with user demand evolving towards a mix of everyday cushioning shoes and racing shoes. The competition is fierce, with a focus on balancing functionality and fashion [8]. New Brand Collaborations - The company has signed new running brands like Lily, which emphasizes both functionality and distinctive design, reflecting a trend where consumers are willing to pay a premium for unique styles [9][10]. - New brands such as Norda, Sore, Norona, and Sally are being introduced, primarily through online sales and pop-up stores to maximize profit efficiency [10]. Store and Channel Strategy - The company plans to dynamically adjust its store count, expecting to reduce the number of stores by a few hundred by the end of the year, targeting a total of approximately 4,600 to 4,700 stores [11]. - The retail industry is facing rapid changes, necessitating flexible strategies to adapt to evolving consumer behaviors and market conditions [12]. Future Growth Expectations - The company maintains its growth expectations for FY2025, projecting net profit to remain flat year-on-year while improving net profit margins [16]. Additional Important Insights - The company is focusing on enhancing its interaction with sports communities through innovative store types and multi-brand product offerings [9][10]. - The competitive landscape in the running market is characterized by low technological barriers, making it essential for brands to combine functionality with stylish elements to meet diverse consumer needs [8].