Abercrombie & Fitch Co (ANF) 2023 Q2 法說會逐字稿

Good day, and welcome to Abercrombie & Fitch Second Quarter Fiscal Year 2023 Earnings Call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to Mo Gupta. Please go ahead.

美好的一天，歡迎參加 Abercrombie & Fitch 2023 財年第二季度財報電話會議。今天的會議正在錄製中。 （操作員指示）此時，我想將會議轉交給莫·古普塔。請繼續。

Thank you. Good morning, and welcome to our second quarter 2023 earnings call. Joining me today on the call are Fran Horowitz, Chief Executive Officer; and Scott Lipesky, Chief Financial Officer and Chief Operating Officer.

謝謝。早上好，歡迎參加我們的 2023 年第二季度財報電話會議。今天與我一起參加電話會議的是首席執行官 Fran Horowitz；首席財務官兼首席運營官斯科特·利佩斯基(Scott Lipesky)。

Earlier this morning, we issued our second quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section. Also available on our website is in an investor presentation. Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today. These factors and uncertainties are discussed in our reports and filings with the Securities and Exchange Commission.

今天早上早些時候，我們發布了第二季度收益報告，該報告可在我們網站 Corporate.abercrombie.com 的“投資者”部分查看。我們的網站上還提供了投資者介紹。請記住，我們將在電話會議中做出某些前瞻性聲明。這些陳述受到 1995 年《私人證券訴訟改革法案》安全港條款的約束，並受到可能導致實際結果與我們今天提到的預期和假設存在重大差異的風險和不確定性的影響。這些因素和不確定性在我們向美國證券交易委員會提交的報告和文件中進行了討論。

In addition, we will be referring to certain non-GAAP financial measures during the call. Additional details and reconciliations of GAAP to adjusted non-GAAP financial measures are included in the release and investor presentation issued earlier this morning.

此外，我們將在電話會議期間提及某些非公認會計準則財務指標。今天上午早些時候發布的新聞稿和投資者介紹中包含了 GAAP 與調整後的非 GAAP 財務指標的更多細節和調節。

Finally, references to Abercrombie brands includes our Abercrombie & Fitch and Abercrombie Kids brands and references to Hollister brands includes Hollister, Gilly Hicks and Social Tourist brands. With that, I will turn the call over to Fran.

最後，提及 Abercrombie 品牌包括我們的 Abercrombie & Fitch 和 Abercrombie Kids 品牌，提及 Hollister 品牌包括 Hollister、Gilly Hicks 和 Social Tourism 品牌。這樣，我就把電話轉給弗蘭。

Thanks, Mo. Good morning, everyone, and thank you for joining us today as we discuss our second quarter results. It was a very busy summer for our global brands and I am pleased to report we delivered both net sales and operating margin above the outlook ranges we provided on our call in late May.

謝謝莫。大家早上好，感謝您今天加入我們討論第二季度業績。對於我們的全球品牌來說，這是一個非常忙碌的夏天，我很高興地報告，我們的淨銷售額和營業利潤率均高於我們在 5 月底的電話會議上提供的展望範圍。

Total net sales grew 16% in Q2, showing improvement across regions, brands and channels. Abercrombie brands continued their strong momentum, delivering a net sales increase of 26%. While Hollister brands made an important return to net sales growth this quarter with a year-over-year increase of 8%. This Hollister return is a result of the comprehensive work the team has done to get closer to our teen customer and evolve the assortment over the past year.

第二季度總淨銷售額增長 16%，各地區、品牌和渠道均有所改善。 Abercrombie 品牌繼續保持強勁勢頭，淨銷售額增長 26%。而Hollister品牌本季度實現了淨銷售額增長的重要回歸，同比增長8%。 Hollister 的此次回歸是團隊在過去一年中為更貼近青少年客戶並改進產品系列所做的全面工作的結果。

Looking across the company, I am also proud of how we grow, which included both higher unit selling and higher AUR, showing strong product acceptance and value perception. Our sales growth produced meaningful operating leverage and when combined with year-over-year gross profit rate improvement delivered a second quarter operating margin of 9.6%, a significant expansion from a roughly breakeven quarter last year.

縱觀整個公司，我也為我們的成長方式感到自豪，其中包括更高的銷量和更高的 AUR，顯示出強大的產品接受度和價值感知。我們的銷售增長產生了有意義的運營槓桿，再加上毛利率同比改善，第二季度運營利潤率達到 9.6%，較去年大致盈虧平衡的季度大幅增長。

Chase is definitely back, and it continues to help us accomplish our strategic goal of keeping inventory tight and current with total inventory finishing 30% lower than second quarter 2022. In what continues to be a dynamic macro environment, our second quarter and first half results show our playbook is working and the customer is choosing our brands. In response, we are raising our full year sales and operating margin outlook, which Scott will expand on shortly.

大通肯定會回來，它繼續幫助我們實現保持庫存緊張和最新的戰略目標，總庫存比 2022 年第二季度低 30%。在仍然充滿活力的宏觀環境中，我們的第二季度和上半年業績表明我們的策略正在發揮作用，並且客戶正在選擇我們的品牌。作為回應，我們提高了全年銷售額和營業利潤率預期，斯科特將很快擴大這一預期。

Diving into some brand color. Abercrombie brands continue to impress and push to new heights, marking the highest second quarter sales for the brand since 2011 and the 10th consecutive quarter of sales growth. The 26% sales growth in the quarter was on top of 5% growth in the second quarter of 2022, exceeding our expectations. We've also seen sales growth continue for Abercrombie brands into early August.

深入研究一些品牌顏色。 Abercrombie 品牌繼續給人留下深刻印象並推向新的高度，創下該品牌自 2011 年以來最高的第二季度銷售額，並連續第 10 個季度實現銷售額增長。本季度銷售額增長 26%，高於 2022 年第二季度 5% 的增長，超出了我們的預期。我們還看到 Abercrombie 品牌的銷售額持續增長至 8 月初。

As we shared in our call in May, a deep understanding of our customer allows us to present a compelling assortment through an authentic brand voice and experience. These elements work together to help form long-lasting relationships with our customers. We saw balance in Abercrombie brands grew in the second quarter. Units in AUR were both positive, global traffic and conversion improved and all the regions, channels and genders positively contributed to sales growth.

正如我們在五月份的電話會議中所分享的那樣，對客戶的深入了解使我們能夠通過真實的品牌聲音和體驗來呈現引人注目的產品組合。這些要素共同作用，有助於與我們的客戶建立持久的關係。我們看到 Abercrombie 品牌的平衡在第二季度有所增長。 AUR 單位均為正數，全球流量和轉化率均有所改善，所有地區、渠道和性別都對銷售增長做出了積極貢獻。

Both men's and women's posted double-digit sales growth in Q2. In women's, we continue to see strength in pants and dresses as our customers look for outfits to get them through their workday to their weekend, get away. On the men's side, we saw strength in knit tops and pants, all versatile seasonless products to outfit them for their everyday lives. The current position of the Abercrombie & Fitch brand is a result of years of deep transformational work and focus on executing our playbook to modernize the brand and get back to growth.

第二季度男裝和女裝銷售額均實現兩位數增長。在女裝方面，我們繼續看到褲子和連衣裙的優勢，因為我們的客戶正在尋找適合他們度過工作日和周末外出的服裝。在男裝方面，我們看到了針織上衣和褲子的優勢，這些都是適合日常生活的多功能不季節產品。 Abercrombie & Fitch 品牌目前的地位是多年深入轉型工作的結果，並專注於執行我們的策略，實現品牌現代化並恢復增長。

It was especially proud moment from me last month when we opened our new Abercrombie store in Fifth Avenue in New York City. The updated store design, the range of products and the omnichannel experience truly showcase the evolution and strength of the brand and demonstrate who we are today. We are happy to bring our updated brand expression in Fifth Avenue and we look forward to opening more stores around the world in the months to come.

上個月，當我們在紐約市第五大道開設新的 Abercrombie 專賣店時，我感到特別自豪。更新的商店設計、產品範圍和全渠道體驗真正展示了品牌的演變和實力，並展示了我們今天的形象。我們很高興在第五大道帶來更新的品牌表達，並期待未來幾個月在世界各地開設更多商店。

Our second quarter milestones continue with Hollister brands, where we returned to growth with an 8% sales improvement over last year exceeding our internal expectations in a challenging environment for our teen customers. We see this quarter as a key proof point, validating months of work by our team to evolve the brand positioning and the assortment. Consistent with the first quarter, we drove a healthier, more profitable business with gross profit rate improvement on higher AUR and lower freight costs and significantly lower year-over-year inventory levels, down more than total company average. With clean current inventory, we control the promotional calendar and reduced discounts in the second quarter, further supporting gross profit rate expansion from last year.

Hollister 品牌在第二季度繼續實現里程碑，在青少年客戶充滿挑戰的環境中，我們恢復了增長，銷售額比去年增長了 8%，超出了我們的內部預期。我們認為本季度是一個關鍵的證明點，驗證了我們團隊數月來發展品牌定位和產品類別的工作。與第一季度一致，我們推動了更健康、更有利可圖的業務，由於 AUR 提高、貨運成本降低以及同比庫存水平顯著降低（低於公司總體平均水平），毛利率有所改善。在當前庫存清理的情況下，我們控制了第二季度的促銷日曆並減少了折扣，進一步支撐了毛利率較去年的擴張。

On the product, which was developed using months of research and testing, second quarter selling was driven by customer response to a more balanced assortment. We saw strong conversion in women from purposeful distortions to dresses non-denim bottoms and seasonal tops, while in men's, we [office] our progress across top and non-denim bottoms. We entered the second half with our assortment tightly aligned with our teams need to represent who they are becoming and we are fully in chase mode across genders to quickly deliver more of what's working.

該產品是經過數月的研究和測試而開發的，第二季度的銷售是由客戶對更平衡的品種的反應推動的。我們看到女性從故意扭曲到非牛仔下裝和季節性上衣的轉變，而在男裝中，我們在上衣和非牛仔下裝方面取得了進展。進入下半年，我們的產品類別與我們的團隊需要緊密結合，代表他們正在成為什麼樣的人，我們完全處於跨性別的追逐模式，以快速交付更多有效的產品。

Beyond the assortment, we're also bringing updated brand voice to Hollister, highlighting changes in the product while continuing to use social media to present the brand authentically. We have a number of digital campaigns planned throughout the fall that will further amplify the current projection of the brand. We know the teen customers deeply connected through digital, but the store experience is just as important, if not more so, for this customer. As we've shared previously, about 2/3 of Hollister's 2022 sales were in store and the store channel was an area of strength for us in the second quarter.

除了品種之外，我們還為 Hollister 帶來更新的品牌聲音，突出產品的變化，同時繼續使用社交媒體真實地展示品牌。我們計劃在整個秋季開展一系列數字活動，這將進一步擴大該品牌當前的影響力。我們知道青少年顧客通過數字技術建立了深厚的聯繫，但對於這些顧客來說，商店體驗同樣重要，甚至更重要。正如我們之前分享的，Hollister 2022 年銷售額的約 2/3 是在實體店銷售，而實體店渠道是我們第二季度的優勢領域。

As we look to fall, we're happy to see sales growth continue for Hollister Brands into early August. We've seen nice traffic and conversion improvements across channels that tell us the customer is ready to shop, and we believe we are well positioned to engage with them. We're optimistic that we can deliver sales growth for the remainder of the year, and that growth is embedded in our updated outlook.

當我們展望秋季時，我們很高興看到 Hollister Brands 的銷售額持續增長到八月初。我們已經看到各個渠道的流量和轉化率都得到了很好的改善，這告訴我們客戶已經準備好購物，並且我們相信我們有能力與他們互動。我們樂觀地認為，我們可以在今年剩餘時間內實現銷售增長，並且這種增長已包含在我們最新的展望中。

Shifting to our regional performance. We saw the strongest Q2 results in the Americas with 19% sales growth. Outside the Americas, both regions contributed to second quarter sales, delivering 4% growth in EMEA and 18% growth in APAC. Both brands also saw sales growth across regions, an important milestone we were targeting for 2023.

轉向我們的區域績效。我們在美洲看到了最強勁的第二季度業績，銷售額增長了 19%。在美洲以外，這兩個地區都對第二季度的銷售額做出了貢獻，歐洲、中東和非洲地區增長了 4%，亞太地區增長了 18%。這兩個品牌的跨地區銷售額也實現了增長，這是我們在 2023 年設定的重要里程碑。

In EMEA and APAC, we benefited from the product evolution and distortion in both Hollister and Abercrombie brands. We've organized around a regional operating model that provides better support for our local customer, and for the first half, our regional teams made sizable resets to our foundation in terms of pricing, promotions, along with depth and timing of seasonal inventory. We believe this regional operating model is a key growth enabler moving forward.

在歐洲、中東和非洲和亞太地區，我們受益於 Hollister 和 Abercrombie 品牌的產品演變和扭曲。我們圍繞區域運營模式進行組織，為當地客戶提供更好的支持，上半年，我們的區域團隊在定價、促銷以及季節性庫存的深度和時間方面對我們的基礎進行了大規模的調整。我們相信這種區域運營模式是未來增長的關鍵推動因素。

We've achieved so much this quarter in the first half of 2023 and believe our results demonstrate strong execution in a highly dynamic macro environment as we remain close to the customer and deliver relentless -- deliver relevant assortments for their lifestyle needs, they continue to choose our brands. We delivered growth and profit expansion while balancing inventory and making the strategic investments we believe are critical to achieve our Always Forward Plans and position the company for long-term success.

我們在2023 年上半年的本季度取得瞭如此多的成就，相信我們的業績證明了在高度動態的宏觀環境中的強大執行力，因為我們始終貼近客戶並堅持不懈地提供滿足他們生​​活方式需求的相關品種，他們繼續選擇我們的品牌。我們實現了增長和利潤擴張，同時平衡庫存並進行戰略投資，我們認為這對於實現我們的“永遠前進”計劃和使公司取得長期成功至關重要。

I'll now turn it over to Scott to give you some additional detail on the quarter and our updated financial outlook for 2023.

現在我將把它交給 Scott，向您提供有關本季度的更多詳細信息以及我們更新的 2023 年財務展望。

Thanks, Fran. One item to note before I speak to the second quarter and our updated full year outlook. During the second quarter of 2023, we've evolved our operating model and structure to better leverage the knowledge and experience of our regional teams to enable global growth. With these moves, our segment reporting will shift to be geographically focused on 3 regions: the Americas, EMEA and APAC. Our second quarter 10-Q will show additional disclosures in our financial statement footnotes.

謝謝，弗蘭。在談論第二季度和我們更新的全年展望之前，需要注意一點。 2023 年第二季度，我們改進了運營模式和結構，以更好地利用區域團隊的知識和經驗來實現全球增長。通過這些舉措，我們的分部報告將在地理上集中於 3 個地區：美洲、歐洲、中東和非洲和亞太地區。我們的第二季度 10-Q 將在財務報表腳註中顯示更多披露內容。

Now on to second quarter results. We delivered a strong quarter on the top line with total net sales of $935 million up 16% to last year. Comparable sales for the quarter were up 13%. We saw year-over-year sales gains improved each month as the second quarter progressed, driving results above the expectations we shared in May.

現在來看第二季度的業績。我們的季度營收表現強勁，總淨銷售額達到 9.35 億美元，比去年增長 16%。該季度的可比銷售額增長了 13%。隨著第二季度的進展，我們看到每個月的同比銷售增長都在改善，推動業績超出我們 5 月份的預期。

On a regional basis, the Americas led the way with 19% growth. We saw sales inflected positive in EMEA with 4% growth over last year. In APAC, we continue to benefit from the China reopening, delivering 18% growth. Looking at the brand, Abercrombie Brands delivered 26% growth and Hollister brands grew 8% off the second quarter of 2022, where we saw the teen market and our performance take a step back.

從地區來看，美洲以 19% 的增長率領先。我們看到歐洲、中東和非洲地區的銷售額出現積極變化，比去年增長了 4%。在亞太地區，我們繼續受益於中國的重新開放，實現了 18% 的增長。從品牌來看，Abercrombie Brands 與 2022 年第二季度相比實現了 26% 的增長，Hollister 品牌增長了 8%，我們看到青少年市場和我們的業績出現了退步。

For Abercrombie brands, growth was consistent across genders, while the women's business led the way in Hollister brands.

對於 Abercrombie 品牌來說，不同性別的增長是一致的，而 Hollister 品牌的女裝業務則處於領先地位。

Moving on to gross profit. Our rate for the quarter was 62.5% compared to 57.9% in 2022. There were several key drivers of the 460 basis point improvement. First, we saw approximately 400 basis points contribution from better-than-expected AUR driven by a higher mix of Abercrombie business to the total, lower promotional activity and some ticket benefits in Abercrombie.

轉向毛利潤。我們本季度的比率為 62.5%，而 2022 年為 57.9%。460 個基點的改善有幾個關鍵驅動因素。首先，我們看到 AUR 的貢獻約為 400 個基點，原因是 AUR 好於預期，這是由 Abercrombie 業務的增加所推動的，而 Abercrombie 的促銷活動和一些門票優惠的總量較少。

Second, we saw a freight benefit of approximately 340 basis points. Finally, these benefits were offset by higher cotton costs, impacting the rate by around 180 basis points and 60 basis points from adverse impact from foreign currency. The net benefit from freight and cotton for Q2 was approximately 160 basis points, in line with the expectations going into the quarter and consistent with our full year estimated benefit of approximately 250 basis points.

其次，我們看到貨運效益提高了約 340 個基點。最後，這些好處被棉花成本上漲所抵消，使匯率受到約 180 個基點的影響，以及因外匯不利影響而造成 60 個基點的影響。第二季度貨運和棉花的淨收益約為 160 個基點，符合本季度的預期，也與我們預計的全年約 250 個基點的收益一致。

The supply chain is in a good place with freight cost, shipping times and performance significantly better than last year. With a functioning supply chain, we can once again run the business the way we would like, leveraging Chase to read and react and drive inventory receipts. Our inventory for the quarter was down 30% to last year, and both brands and all regions are leveraging our Chase capabilities.

供應鏈狀況良好，運費、運輸時間和績效均明顯優於去年。有了正常運轉的供應鏈，我們就可以再次按照我們希望的方式運營業務，利用大通銀行讀取、做出反應並推動庫存收貨。我們本季度的庫存比去年下降了 30%，兩個品牌和所有地區都在利用我們大通的能力。

We continue to expect to finish the third quarter with inventories lower than last year. At year-end, we expect to be flat to down to last year. Operating expense, excluding other operating income, was $497 million compared to adjusted operating expense of $465 million last year. We had no exclusions this year and excluded $2 million of pretax asset impairment charges last year. The year-over-year expense increase was driven by inflation, investments in digital and technology and higher incentive-based compensation. With higher-than-expected sales, we saw improved expense leverage in the quarter with operating expense representing 53.2% of sales this year compared to 58% last year.

我們仍然預計第三季度的庫存將低於去年。到年底，我們預計將與去年持平或下降。不包括其他營業收入的營業費用為 4.97 億美元，而去年調整後的營業費用為 4.65 億美元。今年我們沒有排除任何情況，去年排除了 200 萬美元的稅前資產減值費用。費用同比增長是由通貨膨脹、數字和技術投資以及更高的激勵性薪酬推動的。由於銷售額高於預期，我們看到本季度費用槓桿有所改善，運營費用佔銷售額的 53.2%，而去年為 58%。

Operating income was $90 million compared to approximately breakeven last year. Operating income exceeded our expectations, driven by the combination of higher sales, a better-than-expected gross profit rate and improved expense leverage. Net income per diluted share was $1.10 compared to an adjusted net loss per share of $0.30 last year.

營業收入為 9000 萬美元，去年約為盈虧平衡。在銷售額增加、毛利率好於預期以及費用槓桿改善的共同推動下，營業收入超出了我們的預期。稀釋後每股淨利潤為 1.10 美元，而去年調整後每股淨虧損為 0.30 美元。

On the balance sheet, we ended the quarter with cash of $617 million and liquidity of $974 million. For the first half of 2023, we had operating cash flow of approximately $216 million and capital expenditures of approximately $90 million. We ended the second quarter with 759 stores. Based on the first half results and a solid start to August for both Abercrombie and Hollister brands, we are increasing our full year outlook. This updated full year outlook replaces all previous guidance.

在資產負債表上，本季度末我們的現金為 6.17 億美元，流動資金為 9.74 億美元。 2023 年上半年，我們的運營現金流約為 2.16 億美元，資本支出約為 9000 萬美元。第二季度末，我們擁有 759 家商店。基於 Abercrombie 和 Hollister 品牌上半年的業績以及 8 月份的良好開局，我們正在上調全年展望。此更新的全年展望取代了之前的所有指導。

For the full year, we expect net sales growth of around 10% from the 2022 level of approximately $3.7 billion. This is up to our previous outlook of up 2% to 4% due to outperformance in the second quarter and our current expectations for the second half. We continue to expect the 53rd week to contribute approximately $45 million to fiscal 2023.

我們預計全年淨銷售額將比 2022 年約 37 億美元的水平增長 10% 左右。由於第二季度的優異表現以及我們目前對下半年的預期，這符合我們之前預期的增長 2% 至 4% 的預期。我們仍然預計第 53 週將為 2023 財年貢獻約 4500 萬美元。

For stores, we expect approximately 35 new stores, 20 combined remodels and right sizes and 30 closures. For operating margin, we expect to be in the range of 8% to 9%, up from our previous outlook of 5% to 6%, with the increase driven by higher expectations for gross profit rate expansion on higher AUR and improved expense leverage on higher sales. We continue to expect a net benefit from freight and cotton of approximately 250 basis points for the full year. We expect an effective tax rate in the low to mid-30s compared to our previous expectation of high 30s due to higher expected profitability levels, and we continue to expect CapEx of approximately $160 million.

對於商店，我們預計大約有 35 家新店、20 家經過合併改造和適當規模的商店以及 30 家關閉。對於營業利潤率，我們預計營業利潤率將在8% 至9% 之間，高於之前的5% 至6% 預期，這一增長是由於AUR 上升對毛利率擴張的預期較高以及費用槓桿改善所致。更高的銷售額。我們繼續預計全年貨運和棉花淨收益約為 250 個基點。由於預期盈利水平較高，我們預計有效稅率將在 30 多歲左右，而之前的預期為 30 多歲，並且我們繼續預計資本支出約為 1.6 億美元。

For the third quarter of 2023, we expect net sales to be up low double digits compared to fiscal third quarter 2022 level of $880 million. Embedded in the outlook is the assumption that we see year-over-year growth across regions and brands with Abercrombie brands continuing to outperform Hollister brands. The outlook also assumes that total sales growth compared to 2021 remains consistent with the trend we saw in the first and second quarter.

與 2022 財年第三季度 8.8 億美元的水平相比，我們預計 2023 年第三季度的淨銷售額將增長兩位數。展望中的假設是，我們看到各個地區和品牌的同比增長，其中 Abercrombie 品牌的表現繼續優於 Hollister 品牌。該展望還假設與 2021 年相比，總銷售額增長與我們在第一季度和第二季度看到的趨勢保持一致。

For operating margin, we expect to be in a range of 8% to 10% compared to an adjusted operating margin of 2.4% last year. We expect the year-over-year improvement to be driven by a higher gross profit rate on lower freight costs and higher AURs on healthy inventory and lower promotions as well as expense leverage on higher sales.

對於營業利潤率，我們預計將在 8% 至 10% 之間，而去年調整後的營業利潤率為 2.4%。我們預計，同比改善將由較低的貨運成本帶來的較高的毛利率、健康的庫存帶來的較高的AUR、較低的促銷活動以及較高銷售額帶來的費用槓桿推動。

Finally, we expect an effective tax rate in the mid-30s. To close it out, we had a strong first half of the year, and we believe each region and brand is in a position to deliver year-over-year sales growth in the back half. We are pleased with the balance sheet and cash flow generated in the first half of 2023 and we plan to remain on offense as we move through back-to-school into holiday as we expect to open stores, executing against key marketing campaigns and leverage Chase to drive improved product acceptance. And with that, operator, we're ready for questions.

最後，我們預計有效稅率將在 30 多歲左右。最後，我們上半年表現強勁，我們相信每個地區和品牌都能夠在下半年實現同比銷售增長。我們對 2023 年上半年產生的資產負債表和現金流感到滿意，我們計劃在返校進入假期時繼續進攻，因為我們預計開設商店、執行關鍵營銷活動並利用大通銀行推動提高產品接受度。接線員，我們已經準備好回答問題了。

(Operator Instructions) The first question comes from Corey Tarlowe Jefferies.

（操作員說明）第一個問題來自 Corey Tarlowe Jefferies。

Great. I wanted to start with the really impressive momentum that you've seen at Abercrombie. What maybe surprised you to the upside as you thought about where you initially thought the brand would be coming into this quarter and where it actually ended the quarter? And then you also made some positive commentary on Abercrombie specifically into back-to-school. Is there anything Fran that you're seeing that you might want to call out from either a trend perspective that you think is worth noting?

偉大的。我想從您在 Abercrombie 看到的令人印象深刻的勢頭開始。當您想到您最初認為該品牌將進入本季度的情況以及實際結束該季度的情況時，什麼可能會讓您感到驚訝？然後你還對阿伯克龍比（Abercrombie）做出了一些積極的評論，特別是在返校期間。弗蘭（Fran）有沒有看到什麼你可能想從趨勢角度提出的你認為值得注意的事情？

So yes, it's so exciting to see the momentum continue with A&F. As a reminder, it's our 10th consecutive quarter of growth and it really is the culmination of years of hard work. The playbook is working. We've talked about it before, but we are no longer a jeans and T-shirt brand. We certainly are a lifestyle brand today. And what's driving this win is several categories. I mean, the pants is a newer business for us, and we have a great franchise going there. Our dress business continues, our YPB franchise, really exciting is that the men's business is also now comping very, very nicely. It's exciting to see him back and noticing our business as well.

所以，是的，看到 A&F 繼續保持這種勢頭真是令人興奮。提醒一下，這是我們連續第十個季度實現增長，這確實是多年來努力工作的頂峰。該劇本正在發揮作用。我們之前談過，但我們不再是牛仔褲和T卹品牌。今天，我們無疑是一個生活方式品牌。推動這一勝利的因素有幾個方面。我的意思是，褲子對我們來說是一項較新的業務，而且我們在那裡擁有很棒的特許經營權。我們的服裝業務仍在繼續，我們的 YPB 特許經營權，真正令人興奮的是男裝業務現在也表現得非常非常好。很高興看到他回來並註意到我們的業務。

Back-to-school, specifically any trends that we're seeing. The good news is, is that the bottoms business is more than denim. We came out of Q2 last year really kind of focused on our assortments. The team got to work. And there are a lot of things happening from cargo pants to knit bottoms to wider jean legs. So that's what we're seeing in the current business.

回到學校，特別是我們看到的任何趨勢。好消息是，下裝業務不僅僅是牛仔布。去年第二季度，我們確實專注於我們的產品類別。團隊開始工作。從工裝褲到針織褲再到更寬的牛仔褲腿，有很多東西正在發生。這就是我們在當前業務中看到的情況。

That's great. And then, Scott, just on AUR, it seems like we've seen some really nice momentum with AUR. How are you thinking about how the AUR should trend versus what you saw in the first half of this year and in the second half?

那太棒了。然後，Scott，就 AUR 而言，我們似乎看到了 AUR 的一些非常好的勢頭。與您今年上半年和下半年看到的情況相比，您如何看待 AUR 的趨勢？

Yes. We did see some great momentum coming through the first half. As coming into the second quarter, we weren't expecting much AUR, we were able to get some. It really came from a few different places. One, just that Abercrombie business outperforming higher AUR than Hollister, so we get a nice mix benefit there. And then we got to that real key pivot point for Hollister, where we lapped that fall off from last year. And we didn't chase any volume with promotions. So we were able to raise that AUR up year-over-year for Hollister and just run a healthier business, something that we talked about in Q1 also.

是的。我們確實看到上半場出現了一些強勁的勢頭。進入第二季度，我們並沒有期望太多 AUR，但我們能夠得到一些。它確實來自幾個不同的地方。第一，Abercrombie 業務的 AUR 高於 Hollister，因此我們在那裡獲得了很好的組合效益。然後我們到達了霍利斯特真正的關鍵支點，我們克服了去年的下滑。我們並沒有通過促銷來追逐任何銷量。因此，我們能夠逐年提高 Hollister 的 AUR，並運營更健康的業務，這也是我們在第一季度談到的。

As we think about second half at this point, we feel like we have some more AUR to go get out there specifically in Hollister, I would say, where we had a lot of promotions last year, really getting out of that inventory once that trend fell off there in Q2. So that's where we're focused. We have lean inventory, no down 30 coming into Q3, we're current across brands and regions. So that puts us in the best position to pull off promotions in the future.

當我們考慮下半年時，我們覺得我們還有更多的AUR 可以去那裡，特別是在霍利斯特，我想說，去年我們在那裡進行了很多促銷活動，一旦出現這種趨勢，我們就真正擺脫了庫存第二季度就出現了下滑。這就是我們關注的重點。我們有精益庫存，進入第三季度不會減少 30 個，我們在各個品牌和地區都有庫存。因此，這使我們處於未來實現促銷活動的最佳位置。

The next question comes from Dana Telsey with Telsey Advisory Group.

下一個問題來自特爾西諮詢小組的達納·特爾西。

Congratulations on a terrific quarter. This year, you achieved -- this year, you're achieving that operating margin basically of around 8% or so. And when I think about the 2025 target, the target for the operating margin was right around 8%. So this year, 8% to 9%, obviously, and this 2025 target was 8%. How much of what you have now is sticky. So could that 8% 2025 target have the opportunity to reach the long-term target of 10% as we go on this journey?

祝賀您度過了一個出色的季度。今年，你們實現了——今年，你們實現了基本上 8% 左右的營業利潤率。當我考慮 2025 年的目標時，營業利潤率的目標正好在 8% 左右。所以今年顯然是 8% 到 9%，而 2025 年的目標是 8%。你現在擁有的東西有多少是粘性的。那麼，在我們繼續這一旅程的過程中，2025 年 8% 的目標是否有機會實現 10% 的長期目標呢？

Dana, great question. And it's nice sitting here today in the middle of the year to put that 8% to 9% out there for the full year. When we zoom out and look back at 2022, we had a lot of assumptions. It was pretty tumultuous time back in 2022 when we set these targets. And we needed to get some freight and cotton back into the mix. And we weren't sure how quickly that would come Obviously, we've seen freight come back in pretty quickly as that market really has come back in almost the 2019 levels. And as we think about cotton, that's something in the future for us. So Sitting here today, we feel good. We're growing the business. We are getting the cost back into the business, and we're starting to leverage that OpEx, which is really exciting. All key parts of the formula to get us to that 2025 number.

達納，好問題。很高興今天在年中將 8% 到 9% 的收入投入全年。當我們把目光放遠，回顧 2022 年時，我們有很多假設。 2022 年，當我們設定這些目標時，那是一個相當動蕩的時期。我們需要將一些貨運和棉花重新納入其中。我們不確定這種情況會多快發生。顯然，我們看到貨運量很快就恢復了，因為該市場確實已經恢復到幾乎 2019 年的水平。當我們想到棉花時，這對我們來說是未來的事情。所以今天坐在這裡，我們感覺很好。我們正在發展業務。我們正在將成本重新投入到業務中，並且我們開始利用運營支出，這確實令人興奮。公式的所有關鍵部分都可以幫助我們得出 2025 年的數字。

We're not going to talk about 2024 and 2025 at this point, a lot of water to go under the bridge here this year. But we want to make these changes sticky. We want freight to be sticky. That's a little out of our control. Hopefully, cotton is next. And Fran, we talked a little bit about AURs a second ago. But coming to this year, we both talked a lot about holding those AURs, maybe growing them a little bit. Puts us in a really nice position long term from a gross margin perspective. So we've been able to do that. We've been able to grow those gross margins. So sitting here today, we feel good about those targets still. And again, nice to put that 8% to 9% out for this year.

我們現在不打算談論 2024 年和 2025 年，今年有很多事情要做。但我們想讓這些改變具有粘性。我們希望貨運具有粘性。這有點超出我們的控制範圍。希望下一個是棉花。 Fran，我們剛才討論了 AUR。但到了今年，我們都談論了很多關於持有這些 AUR 的事情，也許還會增加一點。從毛利率的角度來看，這使我們長期處於非常有利的位置。所以我們已經能夠做到這一點。我們已經能夠提高毛利率。所以今天坐在這裡，我們仍然對這些目標感到滿意。再說一次，很高興今年將 8% 到 9% 的支出排除在外。

Got it. And then, Fran, just on Hollister, with the improvement in Hollister, I think it was the first positive sales since the fourth quarter of '21 or whatever. What are you seeing there? How do you think of the progression to holiday? And just overall, how is back-to-school trending?

知道了。然後，Fran，就 Hollister 而言，隨著 Hollister 的改善，我認為這是自 21 年第四季度或其他時間以來的首次積極銷售。你在那裡看到什麼？您如何看待假期的進展？總體而言，返校趨勢如何？

Sure, Dana. So I'm very excited and very proud of the team on what we're seeing. So last Q2, to your point, we saw a significant step back for ourselves and many of the other teen retailers. We really took an introspection and said, is it us? Is it macro? And where we landed was that we owned a lot of where we were. The team got to work and I would say, got back to being closer to their customer and really understood how to evolve their assortments. The best news as Scott mentioned, supply chain is back and one of the best tools that we have is Chase and reading reacting, and that's what the team has been up to all year.

當然，達納。因此，我對我們所看到的團隊感到非常興奮和自豪。因此，就您的觀點而言，上個第二季度我們看到我們自己和許多其他青少年零售商出現了重大倒退。我們真的反省一下，是我們嗎？是宏嗎？我們的目標是我們擁有很多我們現在所處的位置。我想說的是，團隊開始工作，重新拉近與客戶的距離，並真正了解如何發展他們的產品種類。正如斯科特提到的，最好的消息是，供應鏈又回來了，我們擁有的最好的工具之一是大通和閱讀反應，這就是團隊一整年所做的事情。

So our assortment for back-to-school are very evolved. They're also very known, which is a great thing for us. Our expectation as we head into the back half is to continue to see growth in Hollister.

因此，我們的返校商品種類非常豐富。他們也很出名，這對我們來說是一件好事。當我們進入下半年時，我們的期望是繼續看到霍利斯特的增長。

The next question comes from Matthew Boss with JPMorgan.

下一個問題來自摩根大通的馬修·博斯。

Congrats on a really nice quarter. So Fran, given the magnitude of the performance at Abercrombie that you continue to see, I guess, could you just speak to what you see driving the sustained momentum at this brand? And how best to think about market share new customer acquisition? And then just relative to a year ago, maybe Scott, could you speak to the supply chain broadly, inventory levels into the back half? And just your ability to chase trends across both concepts this year relative to the same time last year.

恭喜您度過了一個非常美好的季度。那麼，Fran，考慮到您繼續看到的 Abercrombie 業績的規模，我想您能否談談您認為推動該品牌持續發展勢頭的因素是什麼？如何最好地考慮市場份額新客戶獲取？然後，相對於一年前，也許斯科特，您能否廣泛地談談供應鏈，庫存水平進入後半部分？與去年同期相比，你今年追逐這兩個概念趨勢的能力。

Thanks, Matt. So I'll kick this one off. So it is very exciting, and I like your word magnitude. It's nice to see this momentum continue and grow for that matter. It is the 10th consecutive quarter of growth that we have seen. And the consumer is really responding to what we're doing. We're no longer a jeans and T-shirt business. We really have expanded into a lot of new categories. So this young millennial can now wear this brand from work to their weekend getaway, and that's a great example, not of where we're seeing that extension of categories. We have in women's, a franchise called Sloane. It's all over TikTok. Women are loving that pant. We're offering it in many different fabrics and iterations. Our dress business has become a real destination. We have a best dress guest collection that continues to grow year-over-year. She's coming to us for those important wearing occasions now from all of our social things that she's out and out going to and the men's business.

謝謝，馬特。那麼我就先把這一項踢掉吧。所以這非常令人興奮，我喜歡你所說的“規模”。很高興看到這種勢頭持續並增長。這是我們看到的連續第十個季度的增長。消費者確實對我們所做的事情做出了回應。我們不再是牛仔褲和 T 卹業務。我們確實已經擴展到很多新類別。因此，這個年輕的千禧一代現在可以穿著這個品牌從工作到週末度假，這是一個很好的例子，而不是我們看到的類別擴展。我們在女裝方面有一個名為 Sloane 的專營權。一切都在 TikTok 上。女人都喜歡這條褲子。我們提供多種不同面料和款式的產品。我們的服裝業務已成為一個真正的目的地。我們擁有一個逐年持續增長的最佳賓客著裝系列。她現在從我們所有的社交活動和男士事務中來到我們這裡參加那些重要的穿著場合。

We got that back. So we started with women's as a focus and now we've gotten the men's business moving again, too. So our expectation, you asked the second part of your question is about Chase. This Abercrombie business is very chaseable now with the supply chain where it is. We've got a very strong sourcing and supply team where they're very agile. They work with the teams every week, respond to the business and can chase into what's working.

我們拿回來了。因此，我們一開始以女裝為重點，現在我們也再次開始男裝業務。因此，我們期望您提出的問題的第二部分是關於大通銀行的。隨著供應鏈的發展，Abercrombie 的業務現在非常受歡迎。我們擁有一支非常強大的採購和供應團隊，他們非常敏捷。他們每週與團隊一起工作，對業務做出響應，並能夠追尋有效的方法。

Yes. And on the supply chain, Matt, so happy with where we are in supply chain, kind of start at the factories. To Fran's point, we are able to chase. There's capacity out there in the factories, which is nice for us to be able to run a lean inventory business. We need that capacity and be able to be a fast. Then when you think about transportation, inbound, the ocean sailings are better than they have been in years. Timing is better. fulfillment rates are better. And then even when you get on the ground here in the U.S., there's been some really good activity with a lot of the union settling, whether it was rail, most recently with UPS, West Coast ports. So a lot of good news that just equal stability, hopefully, in the supply chain. And if we have stability, that means we can chase and that's how we want to run the business. So very happy with where we sit today.

是的。在供應鏈上，馬特對我們在供應鏈中的位置非常滿意，有點從工廠開始。按照芙蘭的說法，我們是可以追的。工廠有足夠的產能，這對我們能夠經營精益庫存業務來說是件好事。我們需要這種能力並且能夠快速。然後，當您考慮入境交通時，遠洋航行比多年來都好。時機比較好。履行率更好。然後，即使你到達美國這裡，也有一些非常好的活動，很多工會都在解決，無論是鐵路，最近是 UPS、西海岸港口。許多好消息有望帶來供應鏈的穩定性。如果我們有穩定性，那就意味著我們可以追逐，這就是我們經營業務的方式。對我們今天坐的位置非常滿意。

The next question comes from Marni Shapiro with The Retail Tracker.

下一個問題來自 The Retail Tracker 的 Marni Shapiro。

Congrats on an amazing quarter. Stores look fantastic. It's very exciting. Can you touch a little bit on the marketing side of the business? Because Fran, you touched on the Sloane pant on TikTok. You guys are everywhere these days, and it's impressive. Can you talk a little bit about what that spend should look like for the back half of the year? And are you getting new and lapsed chapters back to the brand? I'm curious the little insights there.

恭喜您度過了一個出色的季度。商店看起來棒極了。這是非常令人興奮。您能談談該業務的營銷方面嗎？因為弗蘭，你在 TikTok 上提到了斯隆的褲子。這些天你們到處都是，令人印象深刻。您能談談今年下半年的支出情況嗎？您是否正在為品牌重新帶來新的和失效的章節？我很好奇那裡的小見解。

Sure. Marni, yes, so as far as marketing goes, I'm really proud. I said this all the time, but we really -- our marketing team is really leading in their -- as you say, we are seeing us everywhere. So in Hollister, we've actually evolved our brand positioning very nicely, and you're seeing that in back-to-school, much more focus on the product and a very genuine reflection of who he and she is today for that teen consumer. And marketing for Abercrombie right now, it's truly a machine. We're getting a lot of -- I mean there's a lot of customers out there that are speaking on our behalf and that's the best place to win today. The customer today, you know really responds better to their friends and their -- other customers and they do even to what we're putting out there. So lots of exciting things coming up for the back half. I'll let Scott speak to new and lap shoppers.

當然。 Marni，是的，就營銷而言，我真的很自豪。我一直這麼說，但我們的營銷團隊確實處於領先地位，正如您所說，我們到處都可以看到我們。因此，在霍利斯特，我們實際上已經很好地發展了我們的品牌定位，你會看到，在回到學校時，我們更加關注產品，並且非常真實地反映了他和她今天對青少年消費者的身份。對於 Abercrombie 現在的營銷來說，它確實是一台機器。我們收到了很多——我的意思是有很多客戶代表我們發言，這是今天獲勝的最佳場所。你知道，今天的客戶確實對他們的朋友和他們的其他客戶做出了更好的反應，他們甚至對我們在那裡推出的產品也做出了更好的反應。後半段將會有很多令人興奮的事情發生。我將讓斯科特與新購物者和膝上購物者交談。

Yes. On the spend, I'll start there. Thinking about in the first half, we get around flat year-over-year. That was up in Abercrombie, down in Hollister. We pulled back a little bit on Hollister as we were working on the brand positioning, the brand expression as well as the product and then we'll start to ramp up the marketing in the back half for Hollister. We'll continue to press on the gaps there for Abercrombie. So we expect marketing in total to be up for the back half across the total company. And then the last piece, new and lapse shoppers, yes, for Abercrombie. We've talked a lot over the last, call it, year as we've expanded this age group, 22 to 40, let's call it, that's a very large addressable market. So we're trying to reintroduce people to the brand. They haven't been there for a while. We're ultra -- introducing new customers to the brand that have never shopped with us. So our team, to Fran's point, has done an amazing job finding consumers out there. TikTok has helped, obviously, and we're going to do our share on the side by spending more here in the back half.

是的。關於支出，我將從這裡開始。想想上半年，我們的表現與去年同期持平。上面是阿伯克龍比，下面是霍利斯特。我們在品牌定位、品牌表達以及產品方面對 Hollister 進行了一些調整，然後我們將在下半年開始加強 Hollister 的營銷。我們將繼續填補 Abercrombie 的空缺。因此，我們預計整個公司後半部分的營銷總量將會上升。然後是最後一件作品，新的和舊的購物者，是的，是 Abercrombie 的。我們在過去一年裡談論了很多，因為我們擴大了這個年齡組，從 22 歲到 40 歲，我們可以這麼說，這是一個非常大的潛在市場。所以我們正在努力讓人們重新認識這個品牌。他們已經有一段時間沒去那裡了。我們致力於向從未在我們這裡購物過的品牌介紹新客戶。因此，在弗蘭看來，我們的團隊在尋找消費者方面做得非常出色。顯然，TikTok 提供了幫助，我們將通過在後半部分投入更多資金來貢獻自己的一份力量。

The next question comes from Mauricio Serna with UBS.

下一個問題來自瑞銀集團的 Mauricio Serna。

Congratulations on the very strong results. I just wanted to see if you could share with us maybe the sales growth pretty impressive this quarter. Could you maybe break it down and higher level between AUR growth and units. And also wanted to confirm for the store opening, I think you mentioned 35 new stores and 30 closures. So like that is just like a 5 increase. Could you maybe talk about like where -- like that store opening, would that be more skewed towards Abercrombie or Hollister?

祝賀取得了非常強勁的成果。我只是想看看您是否可以與我們分享一下，也許本季度的銷售增長相當令人印象深刻。您能否將其分解為 AUR 增長和單位之間的更高水平。我想確認一下開店的情況，我想你提到了 35 家新店和 30 家關店。這樣就相當於增加了 5 倍。您能否談談像那家新店開業時，會更傾向於 Abercrombie 或 Hollister 嗎？

On the store side, we'll be tilted a little bit more towards the Abercrombie side, specifically here in the U.S. We've been seeing great trends obviously in that brand for years now, and we'll continue to press our bets there. On the closure side, it will be a little bit across brands, maybe a little bit tilted towards Hollister. So that's where we said net openers again, and there's also 20 remodels and right sizes in there. So while that's not a new store, it's a new expression for our consumer. So we like that also. So when you add those kind of remodels and right sizes and the openings, we've got about 55 new expressions coming for the consumer, and that's awesome.

在商店方面，我們將更傾向於 Abercrombie 方面，特別是在美國。多年來，我們顯然已經看到該品牌的巨大趨勢，我們將繼續在那裡押注。在關閉方面，它將有點跨品牌，也許有點向 Hollister 傾斜。這就是我們再次提到的開網器，裡面還有 20 種改型和合適的尺寸。因此，雖然這不是一家新店，但對我們的消費者來說卻是一種新的表達方式。所以我們也喜歡這樣。因此，當你添加這些類型的改造、正確的尺寸和開口時，我們為消費者提供了大約 55 種新的表達方式，這真是太棒了。

On the sales growth side, we saw AUR growth and unit growth a little bit more tilted towards the AUR side in Hollister specifically, since we didn't comp a lot of those promotions from last year. Units were down a little bit, and that was purposeful and AUR was up. And then on Abercrombie, it's both. It's growing units and it's growing AUR. So obviously really like what we're seeing in the Abercrombie brand.

在銷售增長方面，我們看到 AUR 增長和單位增長更傾向於 Hollister 的 AUR 方面，因為我們沒有對去年的很多促銷活動進行比較。單位數量略有下降，這是有目的的，AUR 有所上升。而在 Abercrombie 上，兩者兼而有之。它的單位數量和 AUR 都在增長。顯然，我們真的很喜歡 Abercrombie 品牌。

Got it. And if I just may follow up on the regional performance. Any commentary that you can provide on the EMEA? I mean, it's back to growth, but still like relatively underperforming the other 2 regions, maybe across the market, what are you seeing? And do you expect that trend of U.S. delivering -- sorry, Americas delivering the strongest results in the second half to continue?

知道了。我可以跟進一下區域表現嗎？您對 EMEA 有何評論？我的意思是，它恢復了增長，但仍然表現相對落後於其他兩個地區，也許在整個市場上，您看到了什麼？您預計美國在下半年取得最強勁業績的趨勢會持續嗎？抱歉，美洲在下半年取得了最強勁的業績。

Yes. We'll continue to expect Americas to outperform. And it's by far our biggest region, so that's a good thing. Whenever we think about the total company, when we think about the inflection in EMEA for the second quarter, it was a good proof point for us. We've talked a lot over the call, it's 6 to 9 months about that Hollister assortment. The evolution of that assortment and the balancing of that assortment, we knew or we hoped, I guess, I should say, that would help us outside of the U.S., and we saw that in Europe, and that was a good sign that we're making the right moves there in Hollister. And then in APAC, obviously, the smallest part of our business, but continuing to see good trends there out of China and Hong Kong. So our goal is to keep that momentum rolling.

是的。我們將繼續預計美洲地區的表現將優於大盤。這是迄今為止我們最大的地區，所以這是一件好事。每當我們考慮整個公司時，當我們考慮第二季度歐洲、中東和非洲地區的拐點時，這對我們來說都是一個很好的證明。我們在電話中討論了很多，關於 Hollister 系列產品已經有 6 到 9 個月的時間了。我們知道或者我們希望，我想，我應該說，該品種的演變以及該品種的平衡，這將有助於我們在美國以外的地區，我們在歐洲看到了這一點，這是一個好兆頭，表明我們“我們正在霍利斯特採取正確的行動。然後在亞太地區，顯然，這是我們業務中最小的部分，但繼續看到中國和香港的良好趨勢。因此，我們的目標是保持這種勢頭。

The next question comes from Paul Lejuez with Citi.

下一個問題來自花旗銀行的 Paul Lejuez。

Scott, I think you said that sales improved each month during the quarter. Curious, if I heard that right, if that was at each brand, each region, maybe you could just clarify that comment and if you've seen further acceleration in August. And then curious about just performance in denim at both brands. I know you said non-denim bottoms. I think we're leading the charge, but curious specifically how denim has performed. And anything else you could share on the China business?

斯科特，我想你說過本季度每個月的銷售額都有所提高。很好奇，如果我沒聽錯的話，如果是在每個品牌、每個地區，也許你可以澄清一下這個評論，如果你在八月份看到了進一步的加速。然後對這兩個品牌的牛仔布表現感到好奇。我知道你說的是非牛仔褲。我認為我們正在引領潮流，但特別好奇牛仔布的表現如何。關於中國業務您還有什麼可以分享的嗎？

Let's see, where should we start with that, Paul? I'll start in the middle with the denim. So yes, we're pleased with our denim business. But as I mentioned, bottoms is much, much bigger than denim is today. And we had for second quarter, a very strong bottoms business across brands and across genders. So we're excited about what we're seeing there. Within denim, there are things happening. She's and He, are both responding to bag your fits and looser denim, the low rise is actually starting to emerge again. So there's still things that are happening that are exciting, but we are really focused on the fact that bottoms are much more than denim today.

讓我們想想，我們應該從哪裡開始呢，保羅？我將從中間的牛仔布開始。所以，是的，我們對我們的牛仔佈業務感到滿意。但正如我所提到的，下裝比今天的牛仔布要大得多。第二季度，我們的跨品牌和跨性別下裝業務非常強勁。所以我們對在那裡看到的一切感到興奮。在牛仔布中，有一些事情正在發生。她和他都在響應寬鬆的牛仔褲，低腰實際上又開始出現了。因此，仍然有一些令人興奮的事情正在發生，但我們真正關注的是這樣一個事實：今天的下裝不僅僅是牛仔布。

Back to the beginning on the sales improvement, yes, we saw sales improve across brands each month as we went through the quarter at a nice start. It enabled us to take that outlook up for Q2 back sitting there in May, and then we saw some acceleration part of the reason for the outperformance in our second quarter. As we think about August, we haven't given numbers and compare to Q2. But puts us in a position where we feel good enough to put an outlook out there for Q3 of up low double digits and then also raise our outlook for the year there to around 10% on the sales line.

回到銷售改善的開始，是的，我們每個月都看到各個品牌的銷售都有所改善，因為我們在本季度取得了良好的開端。它使我們能夠在五月份重新審視第二季度的前景，然後我們看到了第二季度表現優異的部分原因是加速。當我們考慮八月份時，我們沒有給出數字並與第二季度進行比較。但這讓我們感覺足夠好，可以將第三季度的前景預測為低兩位數，然後將全年的銷售前景預測提高到 10% 左右。

Last piece were thoughts on China. Again, I kind of said it a minute ago, but a small part of our business, we're seeing ourselves -- our brands get some share back. It's been a slow return for us coming out of COVID and many others. So we're pleased with that business. Obviously, there's a lot of headlines coming out of China, but all we can do is control what we can control, and that's good balanced assortments, making sure our teams locally distort the assortments, make sure we're setting it at the right times, make sure we're performing well in all the digital platforms in that country, and we feel confident that we're doing those things.

最後一篇是對中國的思考。再說一次，我在一分鐘前說過，但我們業務的一小部分，我們看到了自己——我們的品牌獲得了一些份額。我們從新冠疫情和其他許多疫情中恢復過來的過程很緩慢。所以我們對這項業務感到滿意。顯然，有很多頭條新聞來自中國，但我們所能做的就是控制我們能控制的，這是很好的平衡分類，確保我們的團隊在本地扭曲分類，確保我們在正確的時間設置它，確保我們在該國家/地區的所有數字平台上表現良好，並且我們對自己正在做的事情充滿信心。

The next question comes from Janet Kloppenburg with JJK Research.

下一個問題來自 JJK Research 的 Janet Kloppenburg。

Hi, everybody. Can you hear me?

大家好。你能聽到我嗎？

Yes, we can.

我們可以。

Congratulations to you all. Really nice performance and particularly thrilled to see Hollister inflect. Fran, If you could talk about the performance of Hollister in Europe, particularly and maybe distinguish for the U.K. market where there has been some turbulence and pull back on consumer spending more than expected. And the outlook for that to be sustained. As you said, the Women's is leading the charge like it did at Abercrombie when that turned. And I'm wondering how far behind Men's is? And just lastly, given the success at A&F brand, are there more opportunities for price increases going forward?

恭喜你們大家。表演真的很棒，特別高興看到霍利斯特的變化。 Fran，您能否談談 Hollister 在歐洲的表現，尤其是英國市場，英國市場出現了一些動盪，消費者支出的縮減幅度超出了預期。並且這種前景將持續下去。正如你所說，女子隊正處於領先地位，就像情況發生逆轉時在阿伯克龍比隊所做的那樣。我想知道男裝落後多遠？最後，鑑於A&F品牌的成功，未來是否還有更多漲價的機會？

Okay. So let's start at the top, Janet. So we're excited to see the total Hollister business inflect this past quarter, and that's inclusive of the EMEA market. We saw strength both in U.K. and in Germany, which is where the team was really specifically focused to make sure we turn those 2 first. I know you've been on this journey with us, but we have really evolved this regional operating model over time and put some significant talent in the offices both in London and in Shanghai, and we're excited about seeing them apply these new marketing techniques in those markets as well.

好的。那麼，讓我們從頂部開始吧，珍妮特。因此，我們很高興看到整個 Hollister 業務在上個季度出現變化，其中包括 EMEA 市場。我們在英國和德國都看到了實力，這是團隊真正特別關注的地方，以確保我們首先實現這兩個目標。我知道您一直在與我們一起踏上這段旅程，但隨著時間的推移，我們確實發展了這種區域運營模式，並在倫敦和上海的辦事處配備了一些重要的人才，我們很高興看到他們應用這些新的營銷這些市場的技術也是如此。

So more to come there, but we're happy to see the inflection in EMEA as well. I didn't mean that men's was far behind women's in Hollister and Abercrombie. What I meant was that when we start to see the businesses turn, we do normally see it turn first with women's and we're excited to see how well that's now proceeded for Abercrombie and our expectation is now to see that continue in guide for Hollister as well.

未來還會有更多這樣的事情發生，但我們也很高興看到歐洲、中東和非洲地區也出現了變化。我並不是說霍利斯特和阿伯克龍比的男裝遠遠落後於女裝。我的意思是，當我們開始看到業務轉變時，我們通常會首先看到女裝的轉變，我們很高興看到 Abercrombie 現在的進展如何，我們現在期望看到 Hollister 的指南繼續如此以及。

And regarding the A&F more opportunity for price increases, the way that we're thinking about it is that we are getting our product and our voice experience lined up and the consumer is telling us that because that the prices that we're giving them, they are enjoying for a quality and value perspective. So we do have some of increased AUR planned for the back half. We came into the year really expecting to hold our AUR and really proud and pleased to see the progress that we've been able to make.

關於 A&F 更多的提價機會，我們考慮的方式是，我們將我們的產品和我們的語音體驗結合起來，消費者告訴我們，因為我們給他們的價格，他們享受的是品質和價值的視角。因此，我們確實計劃在後半段增加一些 AUR。進入這一年，我們真的希望能夠保持我們的 AUR，並且非常自豪和高興地看到我們已經取得的進展。

Yes. One last thing on Abercrombie. We have no planned ticket increases as we go through the back half. We made some ticket increases in fall of last year, and those have kind of cycled through at this point for Abercrombie, the plan is about maybe mixing up the assortments. We continue to mix up that assortment, sweaters, jackets, I mean there's many things that are working in that brand that were not working years and years ago. So it's really excited to see that. And on top of that, being able to pull off some promotions, we still run promotions strategically and targeted. But if we can soften those a little bit here and there, then it gives us a chance to maybe take that AUR up a little bit more.

是的。關於阿伯克龍比的最後一件事。我們沒有計劃在後半段增加票價。去年秋天，我們對門票進行了一些上調，對於 Abercrombie 來說，這些已經在這一點上循環了，該計劃可能是為了混合品種。我們繼續混合該品種，毛衣，夾克，我的意思是，該品牌中有很多東西在很多年前就行不通了。所以看到這一點真的很興奮。最重要的是，在能夠完成一些促銷活動的情況下，我們仍然有策略地、有針對性地開展促銷活動。但如果我們能在這里或那裡稍微軟化這些，那麼我們就有機會進一步提高 AUR。

And Scott, could you comment on Hollister's back-to-school trends? I know you said A&F has sustained momentum. What have you said about Hollister in the third quarter today?

斯科特，您能評論一下霍利斯特的返校趨勢嗎？我知道你說過 A&F 的勢頭持續強勁。您今天對第三季度的霍利斯特有何評價？

Same thing, seeing that nice momentum coming off of June into July, into August. So part of the reason we can take up that outlook here for Q3 and the full year is seeing that Hollister inflection and believing here in the second half.

同樣的事情，看到六月到七月、八月的良好勢頭。因此，我們可以在這裡對第三季度和全年進行展望的部分原因是看到霍利斯特的拐點並相信下半年。

And that's globally, right? You're seeing momentum improve?

這是全球範圍內的，對嗎？您看到勢頭有所改善嗎？

Yes.

是的。

(Operator Instructions) Our next question comes from Alex Straton with Morgan Stanley.

（操作員說明）我們的下一個問題來自摩根士丹利的 Alex Straton。

Fran and scott, congrats on another great quarter. Can you guys just give us a sense perhaps for where the operating margin sits for the 2 brands right now compared to history? And if not that, in aggregate, maybe just any color on how we should think about the difference between the 2 and the opportunity from here, particularly at Hollister?

弗蘭和斯科特，祝賀又一個偉大的季度。你們能否讓我們了解一下這兩個品牌目前的營業利潤率與歷史相比如何？如果不是這樣，總的來說，也許我們應該如何思考兩者之間的差異以及這裡的機會，特別是在霍利斯特？

Sure, Alex. I'll grab that one. We don't publish operating margins by brand. But what I would say is the operating margin for Abercrombie is higher than Hollister. We've talked a lot over the past couple of years about our digital business, having a higher operating margin than our store business. And with Abercrombie being much more tilted towards digital that gives that brand a nice edge on operating margins. But we're really pleased about what we're seeing across brands in terms of operating margin. Obviously, taking the outlook up for the year to 8% to 9%, and that's helped from across brands and seeing that cost come in on the product side with freight coming in and hopefully cotton next, that benefits us across brands.

當然，亞歷克斯。我會抓住那個。我們不公佈按品牌劃分的營業利潤率。但我想說的是，Abercrombie 的營業利潤率高於 Hollister。在過去的幾年裡，我們多次談論了我們的數字業務，其營業利潤率高於我們的商店業務。由於 Abercrombie 更加傾向於數字化，這使得該品牌在運營利潤方面具有很大的優勢。但我們對各個品牌的營業利潤率感到非常滿意。顯然，將今年的前景提高到 8% 至 9%，這對各個品牌都有幫助，並且看到成本來自產品方面，貨運進來，希望接下來是棉花，這使我們各個品牌受益。

And Fran also talked about store business being solid across the brands and seeing that store business in Hollister, where we have a very high penetration. That's a good thing to help that operating margin for the Hollister brand also. So we feel good with where we're sitting today and optimistic here for the back half.

弗蘭還談到，各個品牌的商店業務都很穩固，並看到霍利斯特的商店業務，我們在那裡的滲透率非常高。這對於提高 Hollister 品牌的營業利潤也是一件好事。因此，我們對今天所處的位置感覺良好，並對後半段感到樂觀。

I show no further questions at this time. I would now like to turn the call back to Fran for closing remarks.

我目前沒有提出任何進一步的問題。現在我想把電話轉回給弗蘭，讓她發表結束語。

I just want to thank everyone for joining the call today, and we look forward to providing more updates to all of you soon. Thank you.

我只想感謝大家今天加入電話會議，我們期待很快為大家提供更多更新。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。