Financial Data and Key Metrics Changes - The company reported a net sales decline of 5.1% in Q2 and 4.6% year-to-date, with comparable sales down 4.2% in Q2 and 4% year-to-date [31][32] - Adjusted earnings per diluted share were $0.56 for the quarter, with adjusted net income of $64 million [37][30] - Gross margin increased by 28 basis points to 39.9% in Q2, driven by category mix benefits and strong inventory management [35][31] - SG&A expenses decreased by 4.1% to $1.2 billion in Q2, benefiting from lower spending [35][31] Business Line Data and Key Metrics Changes - The women's category showed improvement, particularly in proprietary brands, with a flat comp performance in July [11][12] - The accessories business outperformed the company average, driven by jewelry and the Sephora partnership, with jewelry sales up 12% [13][16] - Men's and kids' categories were the weakest performers, with declines in spring assortments, although proprietary brands like Tech Gear showed strength [18] Market Data and Key Metrics Changes - Digital sales outpaced store sales, driven by strong conversion rates and improved coupon offerings [32][33] - The Kohl's card customer segment underperformed, with sales down in the low teens, while new and non-Kohl's card customers showed positive growth [33][34] Company Strategy and Development Direction - The company is focused on three strategic priorities: offering a curated assortment, reestablishing value and quality, and delivering a frictionless shopping experience [9][19] - There is an emphasis on proprietary brands to enhance customer trust and loyalty, with plans to introduce new proprietary brands [20][21] - The company is adjusting its promotional strategies to include more brands in coupon eligibility, which has shown immediate positive impacts on digital sales [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and consumer pressure, particularly among lower to middle-income customers [8][40] - The outlook for the remainder of the year includes a projected net sales decline of 5% to 6%, with a focus on maintaining gross margin expansion [40][41] - Management expressed confidence in the company's ability to build on momentum from the first half of the year, despite ongoing uncertainties [30][40] Other Important Information - The company ended the quarter with $174 million in cash and cash equivalents, and inventory levels declined by 5% [38][39] - Capital expenditures for the year are expected to be around $400 million, primarily for Sephora and Impulse line rollouts [39] Q&A Session Summary Question: What initiatives are having the greatest impact on the top line? - Management highlighted the focus on proprietary brands and their alignment with consumer value preferences as key drivers for improvement [45][46] Question: How do you see the cadence of comps for Q3 and Q4? - Management expects a similar cadence to the first half, with some potential upsides in both quarters [51][52] Question: Can you provide updates on adding brands back to coupon eligibility? - Management confirmed the addition of about 50 brands, with immediate positive impacts seen in digital sales [58][59] Question: What are the key drivers of comp metrics? - The primary driver of improvement was traffic, with efforts focused on regaining trips from core customers [68][70] Question: How is the company addressing tariff impacts? - Management is actively negotiating with suppliers and adjusting buying strategies to mitigate tariff impacts while maintaining competitive pricing [71][73]

Nvidia开源的Dynamo项目，实现存储系统多级缓存算法，热数据在显存、温数据在主机内存、冷数据在 SSD 或远端对象存储，并通过一套 统一的索引 + 异步流水线实现自动迁移与透明访问，但是多级存储之间的数据迁移流程复杂，延迟开销难以压缩。 微软推出的LMCahce存储系统，高度兼容vLLM等推理框架，但是对分布式存储支持较低，空间上限低。 阿里巴巴提出一种将KV Cache空间扩展到Tair数据库的远端存储方案，存储空间易扩展，但是读写性能难以满足LLM推理业务的低延迟需 求。 CXL（Compute Express Link） 作为一种新兴的高速互联技术，以其高带宽、低延迟和硬件级缓存一致性的特性，为破解内存瓶颈带来了 新的希望，可以解决AI和高性能计算中遇到的内存瓶颈问题。 业界关于CXL存储加速LLM推理的研究仍然较少，探索如何利用CXL等新型介质扩展KV Cache空间，进而将成熟的软件栈迁移到CXL硬件场 景，是一项非常有意义的工作。 当大语言模型（LLM）走向千行百业，推理效率与显存成本的矛盾日益尖锐。 KV Cache （Key-Value Cache）作为提升生成速度的核心技术，却像一个 ...

Financial Data and Key Metrics Changes - Net sales declined by 4.1% and comparable sales decreased by 3.9% in the quarter, attributed to the closure of 24 stores [26][27] - Gross margin increased to 39.9%, up 37 basis points year-over-year, driven by category mix benefits and inventory management [30] - SG&A expenses decreased by 5.2% to $1.2 billion, leveraging approximately 32 basis points compared to last year [30] - The company reported a net loss of $15 million, with earnings per diluted share of negative $0.13, a 46% improvement from the previous year [31] Business Line Data and Key Metrics Changes - Jewelry sales increased by 10% in Q1, primarily driven by Kohl's card customers, following the reintroduction of jewelry into stores [15][16] - Women's apparel is being rebalanced to improve performance, focusing on essentials and proprietary brands [17][19] - Sephora's net sales were up 6% and comparable sales increased by 1% in Q1, contributing to a nearly $2 billion beauty business [18] - The impulse queue line rollout is expected to enhance sales, with plans to expand to nearly all stores by Q3 [18] Market Data and Key Metrics Changes - The digital business saw a sales decline of 7.7% in the quarter, underperforming compared to store sales, which declined by 2.6% [27][28] - The middle and low-income customers are under pressure, prioritizing value and trading down to lower-priced products [28] Company Strategy and Development Direction - The company is focused on three key areas: offering a curated assortment, reestablishing value and quality, and enhancing the omnichannel shopping experience [12][19][23] - Plans for 2025 include improving product assortment clarity and investing in proprietary brands to better serve customer needs [13][19] - The company aims to enhance promotions by including more brands in coupon eligibility, responding positively to customer feedback [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing transformation and the need to align the business with customer needs, particularly focusing on value [40][41] - The company is navigating a fluid environment with uncertainties, particularly affecting middle-income customers [43][44] - Despite challenges, management remains optimistic about achieving financial guidance for the year, with expectations of comparable sales down 4% to 6% [36] Other Important Information - The company completed a private offering of $360 million in senior secured notes, expected to close on May 30, to refinance upcoming debt maturities [34][35] - Inventory strategies are being implemented to manage tariff pressures, with expectations of inventory down high single digits by year-end [32][36] Q&A Session Summary Question: Any adjustments to strategic priorities and what will it take to return to comp growth? - Management does not foresee major changes to the strategy and emphasizes understanding customer needs to restore growth [39][40] Question: Insights on quarter-to-date trends and tariff impacts? - Management holds the full-year guidance due to uncertainties and notes consistent performance with some weather-related impacts [42][44][46] Question: Breakdown of gross margin increase and private label performance? - The increase in gross margin is attributed to a favorable category mix and improved inventory management, with proprietary brands expected to enhance margins [50][52] Question: Assessment of store footprint and potential closures? - The company has a healthy store base and will continue to evaluate store performance, with closures being part of regular hygiene [60][62] Question: Update on Sephora collaboration and operating environment? - Sephora is now present in all stores, and while comp growth has moderated, the company is pleased with market share gains in beauty [73][75] Question: E-commerce performance and profitability outlook? - Digital sales declined but are expected to improve as core customers return, with profitability being lower than stores due to shipping costs [80][84]