艾利丹尼森 (AVY) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions)

女士們、先生們，感謝你們的支持。（操作員指示）

Welcome to Avery Dennison's earnings conference call for the second quarter ended on June 28, 2025. This call is being recorded and will be available for replay after 4:00 PM, Eastern time, today and until midnight, Eastern time, July 29, 2025.

歡迎參加艾利丹尼森 2025 年 6 月 28 日結束的第二季財報電話會議。本次通話正在錄音，將於今天美國東部時間下午 4:00 後至 2025 年 7 月 29 日美國東部時間午夜提供重播。

To access the replay, please dial 1-800-770-2030 or 1-609-800-9909 for international callers. The conference ID number is 585-5706.

如需收聽重播，請撥打 1-800-770-2030 或國際電話 1-609-800-9909。會議 ID 號碼為 585-5706。

I now like to turn the call over to John Eble, Avery Dennison's Vice President of Finance. Please go ahead, sir.

現在我想把電話轉給艾利丹尼森財務副總裁約翰‧艾布爾 (John Eble)。先生，請繼續。

Thank you, Tiffany. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified, and reconciled from GAAP on schedules A4 to A8 of the financial statements accompanying today's earnings release.

謝謝你，蒂芙尼。請注意，在今天的討論中，我們將參考非公認會計準則財務指標。我們使用的非 GAAP 指標是在今天的收益報告附帶的財務報表附表 A4 至 A8 中定義、限定和根據 GAAP 進行調整的。

We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the Safe Harbor statement included in today's earnings release.

我們提醒您，我們將做出某些預測性陳述，以反映我們對未來業績和財務結果的當前看法和估計。這些前瞻性陳述受今天收益報告中的安全港聲明約束。

On the call today are Deon Stander, President and Chief Executive Officer; Greg Lovins, Senior Vice President and Chief Financial Officer; and William Gilchrist, our new Vice President of Investor Relations.

參加今天電話會議的有總裁兼執行長 Deon Stander、資深副總裁兼財務長 Greg Lovins 以及新任投資者關係副總裁 William Gilchrist。

I'll now turn the call over to Deon.

我現在將電話轉給 Deon。

Thanks, John, and hello, everyone. We delivered a solid second quarter with earnings above the midpoint of expectations and strong free cash flow in a dynamic environment. This result again demonstrates the strength and resilience of our franchise with multiple levers in our portfolio to deliver in a range of scenarios.

謝謝，約翰，大家好。我們第二季業績表現穩健，獲利高於預期中位數，並且在動態環境下擁有強勁的自由現金流。這一結果再次證明了我們特許經營的實力和韌性，我們的投資組合中有多種槓桿可以在各種情況下發揮作用。

As anticipated, changes in trade policy throughout the quarter had both direct and indirect impacts on our business. We successfully continue to leverage our proven playbook to mitigate the direct cost increases through strategic sourcing adjustments and select pricing surcharges and to minimize the impact of sourcing demand reduction, particularly in apparel and general retail categories in the Solutions Group.

正如預期的那樣，整個季度的貿易政策變化對我們的業務產生了直接和間接的影響。我們成功地繼續利用我們經過驗證的策略，透過策略採購調整和選擇定價附加費來減輕直接成本的增加，並最大限度地減少採購需求減少的影響，特別是在解決方案集團的服裝和一般零售類別中。

The Materials Group delivered strong productivity and margins on modest volume growth in the quarter. Strong product mix bolted margins, underscoring the effectiveness and importance of our strategy to continue expanding our position in high value, more differentiated categories.

材料集團在本季度實現了強勁的生產力和利潤率，銷量也實現了適度增長。強大的產品組合鞏固了利潤率，凸顯了我們繼續擴大在高價值、差異化類別中的地位這一策略的有效性和重要性。

High value categories constitute over a third of our materials group sales. And these products continue to outpace the base in the second quarter, with particular strength in graphics and reflective solutions. For overall volume, growth in North America was strong, particularly in film categories; while Europe was down, an emerging market growth was solid.

高價值類別占我們材料集團銷售額的三分之一以上。這些產品在第二季度繼續超過基礎產品，尤其是在圖形和反光解決方案方面表現尤為出色。就整體銷量而言，北美成長強勁，尤其是電影類別；儘管歐洲有所下滑，但新興市場成長穩健。

Softer growth in Europe and Asia was partly attributable to a strong second quarter last year in which customers pulled orders forward in anticipation of a price increase. Volume in both regions was slightly below expectations, particularly in paper categories, including a moderate impact from low demand for US exports.

歐洲和亞洲的成長放緩部分歸因於去年第二季度的強勁表現，當時客戶預期價格上漲而提前下單。兩個地區的銷售量略低於預期，尤其是紙張類別，其中包括受美國出口需求低迷的中等影響。

Solutions Group delivered solid margins in the quarter, up compared to prior year despite a decline in apparel and general retail categories, which was partially offset by low double-digit growth in other categories, resulting in a modest decrease in overall sales. Overall apparel sales were down 6% in the quarter.

儘管服裝和一般零售類別的銷售額出現下滑，但解決方案集團本季的利潤率仍然穩健，與去年同期相比有所上升，但其他類別的兩位數低增長部分抵消了這一下滑，導致整體銷售額略有下降。本季服裝整體銷售額下降了 6%。

As you can see on slide 7, orders are down high single digits in April and improved in May and June, exiting the quarter down low single digits. Despite the reduction in sourcing demand during this period, consumer demand for apparel continues to exhibit resilience to date.

正如您在投影片 7 上看到的，4 月訂單量下降了高個位數，5 月和 6 月有所改善，本季結束時訂單量下降了低個位數。儘管在此期間採購需求有所減少，但迄今為止，消費者對服裝的需求仍然表現出彈性。

Within high value solutions, Embelex, a high-growth platform driven by performance in athletic categories and fan engagement in team sports, was down in the quarter on lower sourcing demand and slower orders from prominent US performance brands. We anticipate a strengthening of Embelex's growth trajectory later this year, partially driven by the 2026 World Cup.

在高價值解決方案中，Embelex 是一個由運動類別的表現和團隊運動的粉絲參與度驅動的高成長平台，由於採購需求下降和美國知名運動品牌的訂單放緩，本季業績出現下滑。我們預計，今年稍後 Embelex 的成長軌跡將會加強，部分原因是受到 2026 年世界盃的推動。

Vestcom, our suite of productivity and media solutions for the retail shelf edge, was up roughly 10% in the quarter on the successful rollout of our productivity solutions at CVS Health, which was completed earlier in the quarter.

Vestcom 是我們為零售貨架邊緣提供的生產力和媒體解決方案套件，由於我們在本季度早些時候在 CVS Health 成功推出生產力解決方案，該套件在本季度增長了約 10%。

Turning to Enterprise-wide Intelligent Labels. Sales were comparable to prior year and up mid-single digits sequentially. Apparel and general retail categories were down mid-single digits; while food, logistics, and other categories were up mid-teens collectively.

轉向企業範圍的智慧標籤。銷售額與上年同期相當，且較上季成長中個位數。服裝和一般零售類別下降了中個位數；而食品、物流和其他類別則總體上漲了中個位數。

In Apparel and General Retail, customers reduced orders and inventory levels as they re-evaluated their sourcing timing and strategy. We anticipate growth in these categories will normalize over time.

在服裝和一般零售業，客戶重新評估了採購時機和策略，減少了訂單和庫存水準。我們預計這些類別的成長將隨著時間的推移而正常化。

In food, we delivered strong growth in the quarter as our strategic collaboration with Kroger continues to ramp as expected. And we continue to see strong momentum in our pipeline with other grocery customers.

在食品領域，由於我們與 Kroger 的策略合作繼續按預期推進，我們在本季度實現了強勁成長。我們與其他雜貨客戶的合作也持續保持強勁勢頭。

In logistics, we delivered strong growth compared to prior year and sequentially. Our share in the segment remains strong, and we continue to actively pursue new projects with other customers.

在物流方面，我們與去年同期和上一季相比實現了強勁成長。我們在該領域的份額依然強勁，我們將繼續積極與其他客戶合作開展新專案。

From an overall operational perspective, this business has had to make adjustments to our global network due to shifts in trade policies. To counter this, we activated initiatives to reduce network inefficiencies and associated costs.

從整體營運角度來看，由於貿易政策的變化，該業務必須對我們的全球網路做出調整。為了解決這個問題，我們採取了措施來降低網路效率低下和相關成本。

With more than 70% of our Intelligent Label platform linked to apparel and general retail categories, near-term growth is likely to be impacted by trade policy. We expect growth in these categories will normalize over the cycle and are focused on accelerating controllable growth.

我們的智慧標籤平台 70% 以上的業務與服裝和一般零售類別相關，短期成長可能會受到貿易政策的影響。我們預計這些類別的成長將在周期內恢復正常，並專注於加速可控成長。

Key rollouts planned for this year remain largely on track, and the performance of our recent launches and pilots, particularly within food and logistics where ROIs are exceeding expectations, instills confidence in the long-term growth trajectory of this platform.

今年計劃推出的關鍵產品基本上仍在按計劃進行，我們最近推出的產品和試點產品的表現，特別是在食品和物流領域，投資回報率超出了預期，這增強了人們對該平台長期增長軌蹟的信心。

Shifting back to the total company. Given the near-term uncertainty, we are taking a cautious approach to forward expectations and expect third-quarter earnings per share to be comparable to prior year. We are prepared for a range of scenarios and will continue to leverage our proven playbook to safeguard earnings while driving key initiatives to deliver strong profitable growth, given the strength of the overall franchise.

轉回整個公司。鑑於近期的不確定性，我們對未來預期採取謹慎態度，預計第三季每股收益將與去年同期相當。我們已經為各種情況做好了準備，並將繼續利用我們行之有效的策略來保障收益，同時鑑於整體特許經營的實力，推動關鍵舉措以實現強勁的盈利增長。

We are industry leaders in more than 80% of our portfolio in large, growing, and diverse markets. We are competitively advantaged, including our global scale, footprint, innovation, and go-to-market strategy. We have catalysts for strong growth over cycle in multiple high-value categories that provide differentiated growth potential and in emerging markets.

在龐大、不斷成長且多樣化的市場中，我們的投資組合中超過 80% 都處於行業領先地位。我們擁有競爭優勢，包括我們的全球規模、足跡、創新和市場進入策略。我們擁有在多個具有差異化成長潛力的高價值類別和新興市場中實現週期性強勁成長的催化劑。

Our strong franchise and agile global team provides us multiple levers to deliver in a broad range of scenarios. Materials Group has demonstrated strong resilience through and across cycles and has limited direct tariff exposure due to the regional nature of the business. Solutions Group is less cyclical than it was historically, evidenced by the second-quarter results.

我們強大的特許經營權和敏捷的全球團隊為我們提供了多種手段來實現廣泛的場景。材料集團在各個週期中都表現出了強大的韌性，並且由於業務的區域性，直接關稅風險有限。從第二季的業績可以看出，解決方案集團的周期性不如歷史上那麼強。

Lastly, we have a strong balance sheet with ample capacity and a disciplined approach to capital allocation that provides significant inflexibility, including organic and M&A investments, to accelerate our strategic objectives and expand EVA over cycles. Taken together, these elements will enable us to navigate the dynamic environment and deliver superior earnings growth over the cycle.

最後，我們擁有強大的資產負債表、充足的產能和嚴謹的資本配置方法，這提供了極大的靈活性，包括有機投資和併購投資，以加速我們的策略目標並在周期內擴大 EVA。綜合起來，這些因素將使我們能夠駕馭動態環境並在整個週期中實現卓越的獲利成長。

While I'm confident in our long-term earnings progression, I'm not satisfied with our current growth and earnings trajectory, particularly within our IL platform. Here, we are taking action to improve network efficiency as well as expand innovation to help accelerate growth.

雖然我對我們的長期獲利成長充滿信心，但我對我們目前的成長和獲利軌跡並不滿意，特別是在我們的 IL 平台內。在這裡，我們正在採取行動提高網路效率並擴大創新以幫助加速成長。

I want to thank our entire team for their continued resilience, focus on excellence, and commitment to addressing the unique challenges at hand. Over to you, Greg.

我要感謝我們整個團隊的持續韌性、對卓越的關注以及致力於解決當前的獨特挑戰。交給你了，格雷格。

Thanks, Deon, and hello, everybody. In the second quarter, we delivered adjusted earnings per share of $2.42, up 5% sequentially and comparable to prior year, as productivity offset lower volume in Apparel and the net impact of pricing and raw material costs.

謝謝，Deon，大家好。在第二季度，我們實現的調整後每股收益為 2.42 美元，比上一季度增長 5%，與去年同期持平，因為生產力抵消了服裝銷量的下降以及定價和原材料成本的淨影響。

As Deon mentioned, trade policy uncertainty during the quarter impacted our results, largely due to lower sourcing volume in apparel and general retail categories. We estimate the indirect effect of tariffs lowered our earnings per share by more than $0.10 in the quarter.

正如 Deon 所提到的，本季貿易政策的不確定性影響了我們的業績，主要是由於服裝和一般零售類別的採購量下降。我們估計關稅的間接影響導致本季每股收益下降超過 0.10 美元。

Compared to prior year, sales were down 1% on an organic basis as positive volume mix was more than offset by deflation-related price reductions. Adjusted EBITDA margin was strong at 16.6% in the quarter, up 20 basis points compared to prior year. And we generated strong adjusted free cash flow of nearly $190 million in the quarter.

與前一年相比，銷售額有機下降了 1%，因為通貨緊縮相關的價格下降抵消了積極的銷售組合。本季調整後的 EBITDA 利潤率強勁達到 16.6%，較上年同期上升 20 個基點。本季度，我們產生了強勁的調整後自由現金流，接近 1.9 億美元。

Our balance sheet remained strong with the net debt to adjusted EBITDA ratio at quarter end of 2.3. And we continue to execute our disciplined capital allocation strategy, including returning cash to shareholders. In the first six months of the year, we returned roughly $500 million to shareholders through the combination of share repurchases and dividends.

我們的資產負債表維持強勁，季末淨負債與調整後EBITDA比率為2.3。我們將繼續執行嚴謹的資本配置策略，包括向股東返還現金。今年前六個月，我們透過股票回購和股利等方式向股東返還了約 5 億美元。

Early in the quarter, we announced a 7% increase to the company's quarterly dividend, up to $0.94 per share, a dividend we've consistently grown annually for more than a decade.

本季初，我們宣布將公司季度股息提高 7%，至每股 0.94 美元，十多年來，我們的股息每年持續成長。

Turning to segment results for the quarter. Materials Group sales were down 1% on an organic basis, as modest volume mix growth was more than offset by low single-digit deflation-related price reductions. Organically, high-value categories were up low single digits, and the base business was down low single digits.

轉向本季的分部業績。材料集團銷售額有機下降 1%，因為適度的銷售組合成長被通貨緊縮相關的個位數低幅降價所抵消。從有機角度來看，高價值類別的銷售額成長了低個位數，而基礎業務的銷售額則下降了低個位數。

Looking at regional Label Materials organic volume mix trends versus prior year in the quarter, North America was up low to mid-single digits. Europe was down low to mid-single digits, as we lapped a strong prior year that included customer pull forward ahead of price increases.

與去年同期相比，本季各區域標籤材料有機銷售組合趨勢顯示，北美地區漲幅處於低至個位數的中段。歐洲的銷售額下降了低至個位數的中段，因為我們去年的業績表現強勁，其中包括客戶在價格上漲之前提前退出市場。

Asia Pacific was up low to mid-single digits, and Latin America was up low single digits. Compared to prior year, graphics and reflectives sales were up high-single digits, and performance tapes and medical were up low-single digits organically.

亞太地區的增幅為低至中等個位數，拉丁美洲的增幅為低個位數。與去年同期相比，圖形和反光材料的銷售額實現了高個位數成長，而性能膠帶和醫療產品的銷售額則實現了低個位數有機成長。

Materials Group continued to deliver strong margins, with an adjusted EBITDA margin of. 17.8% in the quarter, down just slightly compared to prior year and up slightly sequentially. Regarding raw material costs, excluding the direct impact of tariffs, we experienced modest sequential global raw material cost deflation in the second quarter, as expected.

材料集團持續保持強勁的利潤率，本季調整後的 EBITDA 利潤率為 17.8%，與去年同期相比略有下降，與上一季相比略有上升。至於原材料成本，排除關稅的直接影響，第二季全球原材料成本出現了溫和的環比下降，這與預期一致。

However, higher tariffs, primarily between the US and Europe, began affecting us in the middle of Q2. We substantially mitigated the increased costs through strategic sourcing adjustments and the implementation of select pricing surcharges. Overall, including our tariffs, our outlook sequentially in Q3 is for low single digit inflation versus prior year.

然而，主要在美國和歐洲之間的關稅上調在第二季中期開始對我們產生影響。我們透過策略性採購調整和實施選擇性定價附加費，大幅降低了增加的成本。總體而言，包括關稅在內，我們對第三季通膨的預期是與去年同期相比通膨率將處於低個位數水準。

Shifting to Solutions Group. Sales were down 1% organically. Outside of apparel and general retail categories, sales were up low double digits, with overall high value categories up low single digits and base solutions down mid-single digits.

轉向解決方案組。銷售額有機下降了 1%。除服裝和一般零售類別外，銷售額均上漲了低兩位數，整體高價值類別上漲了低個位數，而基礎解決方案則下降了中個位數。

Within high value categories, Vestcom was up roughly 10%, driven by new program rollouts. And Embelex was down in the quarter, as Deon noted. Enterprise-wide Intelligent Labels sales were comparable to prior year, and up mid-single digits sequentially in the second quarter.

在高價值類別中，受新項目推出的推動，Vestcom 上漲了約 10%。正如 Deon 所指出的，Embelex 本季業績出現下滑。企業範圍的智慧標籤銷售額與去年同期相當，且第二季較上季成長了中個位數。

Food, logistics, and other categories, combined, were up mid-teens, offset by a mid-single digit decline in apparel and general retail categories. Solutions Group achieved a solid adjusted EBITDA margin of 17.1%, up 30 basis points compared to prior year, as benefits from productivity were partially offset by lower volume in apparel and growth investments.

食品、物流和其他類別合計上漲了15%左右，而服裝和一般零售類別則出現了個位數的下滑。解決方案集團實現了 17.1% 的穩健調整後 EBITDA 利潤率，比上年增長 30 個基點，因為生產力帶來的好處被服裝和成長投資的減少部分抵消。

Now shifting to our outlook. For the third quarter, we expect adjusted earnings per share in the range of $2.24 to $2.40, comparable to prior year at the midpoint, as benefits from productivity and sales growth in the majority of our businesses are offset by typical wage inflation and a top-line decline in apparel and general retail categories.

現在轉向我們的展望。對於第三季度，我們預計調整後的每股盈餘將在 2.24 美元至 2.40 美元之間，與去年同期中位數持平，因為我們大多數業務的生產力和銷售成長帶來的好處被典型的工資通膨以及服裝和一般零售類別的營收下滑所抵消。

Sequentially, historical seasonality trends have resulted in a mid-single digit decrease in EPS, primarily attributable to the August holiday period in Europe and the seasonal nature of the apparel business. Our guidance for Q3 assumes this typical seasonality as well as a slight sequential benefit from currency translation.

連續，歷史季節性趨勢導致每股收益出現中等個位數下降，主要歸因於歐洲八月假期和服裝業務的季節性。我們對第三季的指導假設了這種典型的季節性以及貨幣轉換帶來的輕微連續收益。

While we've seen some signs of apparel industry improvement exiting Q2, the outlook remains uncertain and customer feedback and sentiment remains muted. And we're assuming a continuation of soft apparel volumes in the third quarter. We've also outlined some contributing factors to our full-year results on slide 14 of our supplemental presentation materials.

儘管我們看到服裝業在第二季度出現一些改善的跡象，但前景仍然不確定，客戶反饋和情緒仍然低迷。我們預計第三季軟服飾銷售將持續成長。我們也在補充簡報資料的第 14 張投影片中概述了影響我們全年業績的一些因素。

To highlight a few of the key drivers, we now anticipate a $7 million currency translation benefit to operating income compared to our previous projection of a $7 million headwind. We now expect restructuring savings net of transition costs of approximately $50 million as we continue to ramp up our productivity efforts.

為了強調幾個關鍵驅動因素，我們現在預計貨幣換算將為營業收入帶來 700 萬美元的收益，而我們先前預測的逆風為 700 萬美元。隨著我們繼續增加生產力度，我們預計扣除過渡成本後的重組節餘將達到約 5,000 萬美元。

And while we're not giving guidance for the full year, we do anticipate returning to earnings growth compared to prior year in the fourth quarter, assuming no significant shift in the macro. And we continue to expect strong free cash flow across a wide range of scenarios, targeting roughly 100% conversion for the year.

雖然我們沒有給出全年的預測，但假設宏觀經濟沒有重大變化，我們預計第四季的獲利將恢復至去年同期的成長水準。我們繼續預計在各種情況下都會出現強勁的自由現金流，目標是今年實現約 100% 的轉換率。

In summary, we delivered a solid second quarter with EPS above the midpoint of our expectations through a dynamic environment. And we're well prepared for a variety of macro scenarios and well positioned to continue to deliver exceptional value to our stakeholders through our strategies for long-term profitable growth and disciplined capital allocation.

總而言之，在充滿活力的環境下，我們實現了穩健的第二季業績，每股收益高於我們預期的中點。我們已經為各種宏觀情景做好了充分準備，並有能力透過長期獲利成長和嚴格的資本配置策略繼續為我們的利害關係人提供卓越的價值。

Now, we'll open up the call for your questions.

現在，我們將開始回答大家的提問。

(Operator Instructions) John McNulty, BMO Capital Markets.

（操作員指示） John McNulty，BMO 資本市場。

Yeah. Good morning, and thanks for taking my question. So I wanted to dig into Solutions a little bit. I understand the tariff stuff created some noise. It does look like maybe the trends were improving. But I guess admittedly, back to school doesn't change. Holiday season doesn't necessarily change all that much.

是的。早上好，感謝您回答我的問題。所以我想深入研究一下解決方案。我知道關稅問題引起了一些爭議。看起來趨勢確實可能正在改善。但我想，不可否認的是，重返校園並沒有改變。假期不一定會發生太大的變化。

So I guess, can you speak to whether you see pent up demand where we may see some quicker turnarounds going forward as we get into the second half and how the profitability of that might flow through?

所以我想，您能否談談，您是否看到了被壓抑的需求，進入下半年後我們可能會看到一些更快的轉變，以及這種轉變將如何影響盈利能力？

And then I guess the other question I had on Solutions was just -- you sound optimistic about, in particular, some of the excitement around the food and grocery channel at this point. Is that something where you think we could see a conversion of new business or a new account before the end of the year?

然後我想我對解決方案的另一個問題是 - 你聽起來對目前食品和雜貨管道的一些興奮感到樂觀。您是否認為我們可以在年底之前看到新業務或新帳戶的轉換？

Thanks, John, for the question. Let me just deal with the first one. What we've seen really in the macro environment, John, if you take a step back, is continued retail sales volume softness in Europe. And retail sales in the United States is still only projected to grow above 1%.

謝謝約翰提出這個問題。讓我只處理第一個問題。約翰，如果你退一步來看，我們在宏觀環境中真正看到的是歐洲零售額持續疲軟。而美國零售額預計仍僅能成長1%以上。

And I think the apparel industry specifically itself had been impacted by the whole tariff uncertainty, not just the tariff rate itself, but also when and where they get applied and when they become more certain. Those two things, when you add them together, have certainly had an impact on the way our customers have been thinking about their sourcing strategy.

我認為服裝業本身受到了整個關稅不確定性的影響，不僅僅是關稅稅率本身，還有關稅何時何地實施以及何時變得更加確定。當把這兩件事加在一起時，肯定會對我們的客戶思考其採購策略的方式產生影響。

So in the early days, remember, we said we saw some orders being held as apparel retailers and brands tried to determine where they were going to source and how they were going to price those when they landed in the United States particularly. That has slowly improved as we've gone through the second quarter, but the sentiment from our customers still remains fairly muted.

所以在早期，請記住，我們說過，我們看到一些訂單被扣留，因為服裝零售商和品牌試圖確定他們的採購地點以及當他們抵達美國時如何定價。進入第二季度，這種情況已慢慢改善，但客戶情緒仍然相當低迷。

And the discussions we have with them, they're still saying they're waiting for more clarity to really understand exactly when they're going to be able to do that. Now overall apparel consumption remains relatively robust to date.

在我們與他們的討論中，他們仍然表示正在等待更明確的訊息，以真正了解他們何時能夠做到這一點。目前整體服裝消費仍然相對強勁。

What I think we're going to see as we move forward, at least anecdotally, what I hear from customers, is that they're going to continue to watch how inflationary pressures impact the consumer demand, particularly impact in apparel. Because likely, we're going to see inflationary pricing in the apparel industry as we move forward in the second half.

我認為，隨著我們不斷前進，我們將會看到，至少從傳聞來看，從客戶那裡聽到的是，他們將繼續關注通膨壓力如何影響消費者需求，特別是對服裝的影響。因為很可能，隨著下半年的推進，我們將會看到服飾業價格上漲。

And they're trying to judge how much sourcing volume they then anchor themselves on relative to support that demand. And those ranges that we get from customers tend to vary as well, John. So we're taking an approach where we say that we're assuming in the third quarter continued low single digit demand in our business for apparel and general retail overall.

他們正在嘗試判斷需要多少採購量才能滿足這項需求。我們從客戶那裡得到的範圍也往往有所不同，約翰。因此，我們採取的方法是假設第三季度我們的服裝和一般零售業務的整體需求將繼續保持在個位數的低水平。

To your second question around food and grocery, I am very optimistic. Because while the impact that we've seen on apparel and general retail has been to have mid-single digit clients in the second quarter, outside of that, food, logistics, and other categories is actually growing mid-teens and really good strong growth in food and logistics as well in both of those specific categories.

對於您關於食品和雜貨的第二個問題，我非常樂觀。因為雖然我們看到服裝和一般零售業受到的影響是第二季度客戶數量只有個位數中段，但除此之外，食品、物流和其他類別的客戶數量實際上都達到了十幾歲的中段增長，而且食品和物流這兩個特定類別也都實現了強勁增長。

And what we do know and what we believe at the moment is that outside of the impact that tariffs have had largely on apparel and general retail, the rest of our business is largely on track to where we originally assumed. And in particular, the rollouts that we had assumed as we went through this year are on track.

目前我們確實知道並且相信，除了關稅對服裝和一般零售業的影響之外，我們的其他業務基本上都按照我們最初設想的方向發展。特別是，我們今年所設想的推廣工作正在按計劃進行。

Some of those rollouts in food and logistics, particularly in food, include also new customers as they go from pilot stage to rollout as well. And the results that we're seeing, particularly in food, from an ROI perspective, are exceeding both the existing customers and some of our pilot customers' expectations. This gives us confidence in the fact that we're going to continue to see adoptions as we go through the second half of the year into the start of 2025 -- or 2026, apologies.

食品和物流領域的一些推廣活動，特別是食品領域的推廣活動，在從試點階段過渡到推廣階段時也吸引了新客戶。從投資報酬率的角度來看，我們所看到的結果，特別是在食品領域，超越了現有客戶和一些試點客戶的預期。這讓我們有信心，從今年下半年到 2025 年初（或抱歉，是 2026 年），我們將繼續看到採用率的提高。

Yeah. John, if I could just add one thing to Deon's comments. So we had in the second quarter, as we talked about, impacts in apparel down about 6%. Our assumptions for Q3 is our apparel business overall will be down low single digits versus prior year. We assume a little bit better based on the graph you see and how we were exiting Q2, assuming we stay roughly on the trajectory that we exited Q2 at.

是的。約翰，我能否對 Deon 的評論補充一點。因此，正如我們所說，第二季度服裝業受到的影響下降了約 6%。我們對第三季的假設是，我們的服裝業務整體將比去年同期下降個位數。根據您看到的圖表以及我們如何退出第二季度，我們做出了更好的假設，假設我們大致保持在第二季度退出時的軌跡上。

Ghansham Panjabi, Baird.

甘沙姆·潘賈比，貝爾德。

Yeah. Hey, guys. Just following up on the last question in your comments, Greg, just in terms of the apparel improvement in 3Q. What are you baking in for RFID specifically in terms of volumes for the back half of the year?

是的。嘿，大家好。格雷格，我只是在跟進您評論中的最後一個問題，僅就第三季度的服裝改進而言。就今年下半年的 RFID 銷售而言，您有什麼具體計畫？

And then second, your confidence underpinning the expected improvement in 4Q earnings on a year-over-year basis. What are some of the drivers we should consider as it relates to that assumption?

其次，您的信心支撐了第四季度收益同比預期的改善。與該假設相關的一些驅動因素有哪些？

Ghansham, hi. Let me deal with the first question. Let me just reiterate. We continue to see the impact of apparel and general merchandise, those two categories, through the tariff environment. And as I said, outside of those, our business is largely on track in the way we thought it would be.

甘沙姆，你好。讓我來回答第一個問題。讓我再重申一次。我們繼續看到服裝和日用百貨這兩個類別受到關稅環境的影響。正如我所說，除此之外，我們的業務基本上是按照我們預想的方式進行。

We have two things that are going to happen in the second half of this year. I anticipate all things being equal, there's no further deterioration, we should see growth in IL in the third quarter. And then in the fourth quarter, we expect to see some of those new programs or the rollouts that we're seeing take traction in the fourth quarter as well.

今年下半年將會發生兩件事。我預計，如果所有條件都相同，情況不會進一步惡化，我們應該會在第三季看到 IL 的成長。在第四季度，我們預計一些新計劃或新推出的項目也將在第四季度獲得進展。

Yeah, sorry. Sorry, Ghansham. I didn't get the second question. It didn't come through clearly.

是的，抱歉。抱歉，甘沙姆。我沒聽懂第二個問題。它沒有清楚地表達出來。

As it relates to the 4Q earnings, year-over-year?

與第四季財報相比，年比有何變化？

Oh, 4Q. Yeah, I think when we look at -- you see our guidance for the third quarter at the midpoint of about $2.32 or so. When we look into the fourth quarter and think about the trajectory going forward, typically, as we talked about in Q3, we have some unfavorable seasonality from Q2.

哦，4Q。是的，我認為當我們看的時候——你會看到我們對第三季的指導價中間值約為 2.32 美元左右。當我們展望第四季並思考未來的發展軌跡時，通常，正如我們在第三季所討論的那樣，我們會發現第二季度存在一些不利的季節性因素。

We typically see some favorable seasonality from Q3 to Q4, somewhere in the low single-digit range from an earnings perspective. So that picks us up a nickel or so from that perspective.

我們通常會看到第三季到第四季的一些有利的季節性，從獲利角度來看，大約在個位數的低位範圍內。從這個角度來看，這讓我們獲利五美分左右。

We're continuing to drive productivity actions, as we've talked about as well. And we're increasing our restructuring as well as driving other ongoing productivity across the business. So that gives us a bit of a pickup from Q3 to Q4.

正如我們所討論的，我們將繼續推動生產力行動。我們正在加強重組力度，並推動整個企業持續提高生產力。因此，這使我們從第三季到第四季有所回升。

So when I look at sequentially, at least, those two items alone put us at or above prior year from an earnings perspective. And that's assuming really no improvement in apparel or other parts of the portfolio.

因此，當我按順序查看時，至少從盈利角度來看，僅這兩項就使我們的盈利達到或超過了上一年。這是假設服裝或投資組合的其他部分確實沒有改善。

And we're really expecting, as Deon talked about, to continue driving growth in outside of apparel and IL, continue driving growth in Vestcom versus prior year, et cetera. So those things all together give us confidence that we'll see earnings growth in the fourth quarter.

正如 Deon 所說，我們確實期望繼續推動服裝和 IL 以外的成長，並繼續推動 Vestcom 與去年相比的成長，等等。所有這些因素讓我們有信心第四季的獲利將會成長。

George Staphos, Bank of America.

美國銀行的喬治‧斯塔福斯 (George Staphos)。

Hi, everyone. Good morning. Thanks for the details. I just want to -- and welcome, Gil. I guess I wanted to piggyback on IL as well. So did you see any pickup specific to the setting of tariffs in Vietnam and that being established and then the current orders coming because the customer at least knew what their sourcing and costs would be out of that country?

大家好。早安.謝謝你的詳細資料。我只是想——歡迎吉爾。我想我也想搭 IL 的便車。那麼，您是否看到了與越南關稅制定有關的具體回升，以及關稅的確定，然後當前的訂單就來了，因為客戶至少知道他們在該國以外的採購和成本是多少？

And just looking at the chart and trying to put your commentary together, are you still down year on year in apparel orders into July or are you actually now up modestly? I know you're saying down low single digits in the quarter. But July, where were you?

只要看一下圖表並嘗試整理您的評論，您認為 7 月的服裝訂單是否仍會比去年下降，還是實際上略有上升？我知道您說的是本季的銷售額將下降個位數。但是七月，你在哪裡？

Thanks, George. As it relates to the question specifically on Vietnam, we did see during the quarter, as expected, some volume was being moved from China to other regions, notably, particularly. Vietnam and South Asia as well. This is during the time of the 10% tariff rate around the rest of the world, George.

謝謝，喬治。至於有關越南的具體問題，我們確實在本季度看到，正如預期的那樣，一些交易量正在從中國轉移到其他地區，尤其是。越南和南亞也是如此。喬治，此時正值世界其他地區徵收 10% 關稅的時期。

And so there was a slight pickup in Vietnam IL orders relative to a slight decrease in China. But that all was contained within the overall Q2 performance of apparel and general merchandise being more muted because of the broader tariff impacts.

因此，相較於中國略為下降，越南白熾燈訂單略為回升。但由於更廣泛的關稅影響，服裝和日用百貨商品的第二季整體表現較為低迷，這一切都包含在內。

I will say, though, that as we've seen some of the other tariff rates begin to be set, or at least indicated the magnitude where they're going to be, we continue to see customers, the apparel side, calibrate what they're going to do from a sourcing perspective moving forward. And of course, for our advantage, George, as you know, we have manufacturing facilities and support facilities in each one of these countries.

不過，我要說的是，正如我們所見，一些其他關稅稅率開始製定，或者至少表明了關稅的幅度，我們繼續看到服裝方面的客戶從採購的角度調整他們未來的行動。當然，喬治，正如你所知，對我們有利的是，我們在每個國家都設有製造設施和支援設施。

So as customers choose to move volume, we have the ability to help them in that regard to move the volume, both core products, base products, and IL as needed. From an overall apparel perspective, our current apparel volumes and orders are roughly flat to prior year to date. That's the way I'd characterize it.

因此，當客戶選擇轉移數量時，我們有能力幫助他們轉移數量，包括核心產品、基礎產品和 IL（根據需要）。從整體服飾角度來看，我們目前的服裝銷售和訂單與去年同期基本持平。這就是我對它的描述方式。

Matt Roberts, Raymond James.

馬特羅伯茲、雷蒙詹姆斯。

Hey. Good morning, everybody. I'll shift gears just a little bit here. Maybe or probably, share repurchases to date are near record annual levels. We're still training an evaluation gap for the S&P. So how should we think about free cash on '25 and potential for further repurchases?

嘿。大家早安。這裡我稍微轉換一下話題。或許，或者很可能，迄今為止的股票回購量已接近創紀錄的年度水準。我們仍在為標準普爾培訓評估差距。那麼，我們該如何看待 25 年的免費現金和進一步回購的潛力呢？

And should growth in IL or rollouts continue to be slower than expected? At what point do you think you would need to do inorganic growth? You seemed to call that out earlier. So at what point would you need to pivot there to start seeing greater margin contribution from other high-value categories? Thanks for taking the question.

IL 或推廣的成長是否將持續低於預期？您認為什麼時候需要無機成長？您似乎早就說過這一點了。那麼，什麼時候你需要轉向那裡才能開始看到其他高價值類別帶來的更大利潤貢獻？感謝您回答這個問題。

Yeah. Thanks, Matt. So I think as we talked about last quarter, we're continuing to execute our capital allocation strategy, continuing with the way we've approached it in the past. We talked about -- we ramped up share buybacks in Q1. I think I mentioned a quarter ago that we'd continue doing that -- likely not the same pace we had in Q1, but we were going to continue to do that while the share price was where it was compared to our expected intrinsic value.

是的。謝謝，馬特。因此我認為，正如我們上個季度所討論的那樣，我們將繼續執行我們的資本配置策略，延續我們過去的做法。我們談到——我們在第一季加大了股票回購力道。我想我在一個季度前提到過，我們會繼續這樣做——可能不會像第一季那樣加快速度，但只要股價與我們預期的內在價值相符，我們就會繼續這樣做。

So that's something we continue to do in the second quarter. Again, a slower pace in Q1, but continuing to do that. And we'll continue to execute that capital allocation strategy.

所以這是我們在第二季繼續做的事情。再次，第一季的成長速度有所放緩，但這種趨勢仍在繼續。我們將繼續執行該資本配置策略。

We feel good about the balance sheet. It gives us capacity to invest organically in the business; capacity to continue returning cash through an increase in dividend, as we did last quarter; as well as continue to do share buybacks. And then we have capacity for M&A as well.

我們對資產負債表感到滿意。它使我們有能力對業務進行有機投資；有能力透過增加股息繼續返還現金，就像我們上個季度所做的那樣；並繼續進行股票回購。我們也有併購能力。

So we feel good about that. And that's an area we're continuing to drive opportunities, of course, not just in IL, but across our high-value categories, looking at M&A opportunities to continue to expand our proportion of the portfolio that's in high-value categories.

因此我們對此感到很高興。當然，這是一個我們將繼續推動機會的領域，不僅在 IL，而且在我們的高價值類別中，尋找併購機會，以繼續擴大我們在高價值類別中的投資組合比例。

And Matt, let me just add to Greg's comment. We've been very deliberate in managing our capital allocation consistently over a very long period in a very disciplined way as well. Our leverage ratio is at around 2.3 at the moment.

馬特，請容許我補充一下格雷格的評論。我們長期以來一直非常謹慎地以非常嚴謹的方式持續管理我們的資本配置。目前我們的槓桿率約為2.3。

And we see that management's leading us to have an ability, if we need to, to lean forward when we see market dislocations or asset dislocations in terms of prices, always focused on how we think about executing a strategy. Our M&A pipeline remains very robust. And when we see the opportunities and they're aligned with our strategies, we'll continue to execute on them.

我們看到，如果需要的話，管理階層引導我們具備這樣的能力：當我們看到價格方面的市場錯置或資產錯置時，我們能夠向前邁進，始終關注我們如何思考執行策略。我們的併購管道依然非常強勁。當我們看到機會並且它們與我們的策略一致時，我們將繼續執行它們。

Jeffrey Zekauskas, JPMorgan.

摩根大通的 Jeffrey Zekauskas。

Thanks very much. Your graphics and reflectives volumes have been up high single digits for the first two quarters of the year. Do you expect a continuation in that trend? And what do you see as behind it?

非常感謝。今年前兩個季度，你們的圖形和反光產品銷售一直保持高個位數成長。您預計這種趨勢會持續下去嗎？您認為背後是什麼原因呢？

And then secondly, your SG&A expense has been lower year over year for the first two quarters and nicely lower in the second quarter. When I look at your 10-K, it doesn't seem that your overall employee levels are so different. What's behind the decrease in SG&A? If you could answer those two questions.

其次，前兩個季度，您的銷售、一般及行政費用較去年同期下降，第二季度則大幅下降。當我查看您的 10-K 時，似乎您的整體員工水平並沒有太大差異。銷售、一般及行政費用 (SG&A) 下降的原因是什麼？如果你能回答這兩個問題。

Thanks, Jeff. Yeah, we're pleased with our graphics and reflectives combined growth overall being mid- to high-single digits across the two quarters. It's largely driven actually on our graphics business with particular strength in Asia and North America.

謝謝，傑夫。是的，我們對圖形和反光材料的綜合成長感到滿意，兩個季度的整體成長率達到中高個位數。這實際上很大程度上得益於我們的圖形業務，尤其是在亞洲和北美的實力。

We're continuing to see some new customer acquisition in Asia where we're getting more attraction with what we call our paint protection films overall and similarly in North America where our, what we call, cost color change films are having stronger attraction as the auto market moves into more and more customization of colors and so forth as they look forward.

我們在亞洲不斷獲得一些新客戶，我們的漆面保護膜整體上越來越受到青睞，同樣在北美，隨著汽車市場越來越多地轉向顏色定制等，我們的成本變色膜也越來越具有吸引力。

And we expect largely this trend to continue through the remaining part of this year, in line with our expectations that our high value categories, particularly materials group and also solutions group, will continue to deliver a greater, greater share of our portfolio in time to come.

我們預計這一趨勢將在今年剩餘時間內持續下去，這符合我們的預期，即我們的高價值類別，特別是材料集團和解決方案集團，將在未來繼續在我們的產品組合中佔據越來越大的份額。

Yeah, Jeff. And on your second question on SG&A -- so when we look at versus last year, of course, we've got continued restructuring actions that are benefiting both SG&A and cost of sales, but it's a mix between the two. So there is some benefit there, probably more so on the SG&A side from a headcount perspective proportionally.

是的，傑夫。關於銷售、一般及行政費用 (SG&A) 的第二個問題，與去年相比，我們當然會繼續採取重組行動，這對銷售、一般及行政費用和銷售成本都有好處，但兩者之間是混合的。因此這其中存在一些好處，從員工人數比例來看，銷售、一般及行政費用的好處可能更大。

And then we're obviously -- given the volume environment, particularly in apparel, general retails that we talked about, we're continuing to do discretionary cost reductions. Things like travel, et cetera, we're continuing to manage very well.

然後我們顯然——考慮到數量環境，特別是我們談論的服裝、一般零售業，我們將繼續酌情削減成本。諸如旅行等事務，我們繼續管理得很好。

Then we look from a year over year perspective in the first half. Last year, the first half our performance was above our original target, so we had higher than average incentive compensation accruals. And this year, we're performing a little bit below, given our results below our original expectations, so a little bit below our normal level of incentive comp accruals. So there's an impact across those three buckets versus last year.

然後我們從同比角度來看上半年的情況。去年上半年我們的業績高於原定目標，因此我們的激勵薪酬應計額高於平均水準。今年，我們的業績略有下降，因為我們的業績低於最初的預期，因此也略低於我們正常的激勵補償水準。因此與去年相比，這三個方面都受到了影響。

Anthony Pettinari, Citi.

花旗銀行的安東尼‧佩蒂納裡 (Anthony Pettinari)。

Good morning. Deon, in your prepared remarks, you talked about not being satisfied with the growth trajectory in IL, and I think you talked about efforts to improve network efficiency and expand innovation. And I'm wondering if you could give a little bit more detail about what activities you're pursuing there.

早安.Deon，在您準備好的發言中，您談到了對 IL 的成長軌跡不滿意，我認為您談到了提高網路效率和擴大創新的努力。我想知道您是否可以更詳細地介紹您在那裡進行的活動。

And then just generally, in terms of IL, maybe competitive intensity. I mean, do you feel that you're missing opportunities or growth industry-wide is slowed? Or if you could just give us some context for those comments and the activities that you're pursuing.

然後一般來說，就 IL 而言，也許是競爭強度。我的意思是，您是否覺得自己錯失了機會或整個產業的成長放緩了？或者您是否可以提供一些關於這些評論的背景資訊以及您正在進行的活動。

Sure, Anthony. And let me reiterate, I'm not satisfied where we are with our IL platform overall in terms of its growth and actually our earning trajectory as it stands at the moment. And that's the reason we're so focused on executing against our strategies and, particularly, driving our innovation as well.

當然，安東尼。讓我重申一下，就我們的 IL 平台目前的整體成長以及獲利軌跡而言，我並不滿意。這就是我們如此專注於執行我們的策略，特別是推動我們的創新的原因。

As I specifically focused on the IL, I made the point that when we were moved -- when the initial tariff environment started to emerge, and there was initially tariffs that were set in Mexico relative to other countries and that changed, we were moving -- using our network to try and move around not our assets, but our actual manufacturing volume to make sure that we're taking advantage of whichever was the most tariff-friendly place at that time.

當我特別關注 IL 時，我指出，當我們轉移時 - 當最初的關稅環境開始出現時，最初在墨西哥設定的關稅相對於其他國家而發生變化時，我們也在轉移 - 使用我們的網絡嘗試轉移的不是我們的資產，而是我們的實際製造量，以確保我們利用當時最關稅友好的地方。

Now, of course, that switched quite dramatically during that period as well. And while we have a very resilient network, we can move things around, there are always associated costs. We've learned a lot out of that, Anthony.

當然，在那個時期，情況也發生了相當大的變化。雖然我們擁有非常有彈性的網絡，我們可以移動事物，但總是會有相關的成本。我們從中學到了很多東西，安東尼。

As we move forward, we're taking some additional steps to make sure we're -- at the macro level, we're improving the resilience of how we use that network. We're also thinking through how we use working capital to also make sure we continue to deliver superior service and meet the opportunities that are there.

隨著我們不斷前進，我們正在採取一些額外的措施，以確保我們在宏觀層面上提高我們使用該網路的彈性。我們也在思考如何使用營運資金，以確保我們繼續提供優質服務並抓住現有的機會。

The second part of that is specifically innovation. For me, innovation is always going to drive a differentiating ourselves in the market relative to competition. That's where our focus has been. And we have accelerated our innovation outcomes, not just at the product level, but at the solution level as well.

第二部分具體是創新。對我來說，創新總是會推動我們在市場競爭中脫穎而出。這就是我們關注的重點。我們加速了創新成果，不僅在產品層面，而且在解決方案層面。

And I'll give you a couple of examples of that. At the product level, as we look forward to what is going to be the bigger categories, which is largely food and then logistics, we've continued to really innovate. Recall, we were the first people in food to bring out a microwavable tag, as an example, something that's needed when you get to stuff that is effectively frozen.

我給你舉幾個例子。在產品層面，我們期待更大的類別，主要是食品和物流，我們一直在不斷創新。回想一下，我們是食品業中第一個推出微波爐標籤的人，舉個例子，當你拿到有效冷凍的食物時，這是必需的東西。

But we've also recently launched the first APR, Association of Plastic Recyclers, recyclable tag, which is important when you get to perishable items that are contained in plastic containers. And then the third element is we look forward for innovation.

但我們最近也推出了第一個 APR（塑膠回收協會）可回收標籤，當你拿到裝在塑膠容器中的易腐物品時，這個標籤很重要。第三個要素是我們期待創新。

We're going to be launching in the second half of this year some really strong new proprietary IP to do with the category expansion in food. As you go beyond bakery into some of the other categories like protein and perishables, they will need more specific technology innovation. And I think we're going to be able to really differentiate ourselves in that regard.

我們將在今年下半年推出一些真正強大的新專有 IP，以擴展食品類別。當你從烘焙食品進入蛋白質和易腐食品等其他類別時，他們將需要更具體的技術創新。我認為我們能夠在這方面真正脫穎而出。

I think on your second point around competitive intensity, I don't see a change in competitive intensity overall. This is a space that continues to attract capital, and we see balanced competition all around the world. But we remain in that regard the market leader.

關於你提到的第二點，關於競爭強度，我認為整體上競爭強度並沒有改變。這個領域持續吸引資本，我們看到世界各地的競爭都很平衡。但在這方面我們仍然是市場領導者。

We have the majority share. And I'm anticipating actually this year for our share to slightly increase as we not only roll out, for example, in apparel, our loss detection mechanism. We've spoken openly about that with Inditex. That will actually gain us share as we move forward.

我們佔有大部分份額。事實上，我預計今年我們的份額會略有增加，因為我們不僅在服裝領域推出了損失檢測機制。我們已經與 Inditex 公開討論過這個問題。隨著我們不斷前進，這實際上會為我們帶來市場份額。

But also some of the new rollouts that are coming that I spoke about will also be largely where we are the significant majority providers. I might anticipate that our share overall will continue to expand as we go through the second half of this year.

但我談到的一些即將推出的新產品也主要由我們作為主要供應商提供。我預計，隨著今年下半年的到來，我們的整體份額將繼續擴大。

At a broader level in the industry, I think the industry, given that the industry like us is still anchored in 70% general merchandise, general retail, and apparel, I think we're seeing some of that impact that we're seeing probably across the rest of the industry as well. That said, I still think the industry has significant growth opportunities.

從更廣泛的行業層面來看，考慮到像我們這樣的行業 70% 仍以日用百貨、一般零售和服裝為主，我認為我們可能也會在整個行業中看到這種影響。話雖如此，我仍然認為該行業具有巨大的成長機會。

Our conviction in our growth trajectory remains undimmed. We still see this as a 300 billion-unit or, put differently, $8 billion opportunity, right there and thereabouts, as we move forward. And we are seeing what we need to do see from an adoption process.

我們對成長軌蹟的信心依然堅定不移。隨著我們不斷前進，我們仍然認為這是一個價值 3000 億單位，或者換句話說，80 億美元左右的機會。我們正在從採用過程中了解我們需要做什麼。

We've had the first food customer go. We have a very, very strong pipeline for grocery retail coming up on that. We're the first logistics customer go. We're an active pilot, expanded pilots, with logistics customers. And so while that growth over years, as I've said consistently, may be a little episodic, I still have strong conviction in our ability to grow that platform significantly as we move forward over the next decade.

我們已經接待了第一位食品顧客。我們擁有非常強大的雜貨零售通路。我們是第一個走的物流客戶。我們是一個積極的試點，並且正在擴大試點範圍，與物流客戶合作。因此，儘管正如我一直所說的那樣，多年來的成長可能有些不連貫，但我仍然堅信，隨著我們在未來十年的發展中不斷前進，我們有能力顯著發展這個平台。

Mike Roxland, Truist Securities.

Truist Securities 的 Mike Roxland。

Thank you, Deon, Greg, John, and Gil, for taking my questions and congrats on a good performance despite the backdrop.

感謝 Deon、Greg、John 和 Gil 回答我的問題，並祝賀你們在如此背景下仍然表現出色。

My question is I just wanted to follow up quickly on the growth in food. And you mentioned Deon, you'll obviously -- the significant growth in food, you have a strong pipeline. With respect to Kroger though, the company did announce plans in late June to close 60 stores over the next 18 months. So can you just give a sense of what that means for your IL deployments in baked goods and ultimately for any protein deployment with Kroger? Thank you.

我的問題是，我只是想快速了解一下食品的成長。您提到了 Deon，顯然，食品業務顯著成長，您擁有強大的銷售管道。不過，就克羅格而言，該公司確實在 6 月底宣布了未來 18 個月關閉 60 家門市的計畫。那麼，您能否簡單介紹一下這對您在烘焙食品中的 IL 部署以及最終對 Kroger 的任何蛋白質部署意味著什麼？謝謝。

Yeah, Mike. I'm not necessarily in comment on specifically the reasons why some of our customers do what they do. I think for me, that's just a normalization of the way they look at their real estate footprint.

是的，麥克。我不一定需要評論我們的一些客戶採取這些行動的具體原因。我認為，對我來說，這只是他們看待房地產足跡的正常化方式。

What I will say is our rollout with Kroger continues to be as expected. We're up to around about 700 stores now, midpoint of the year in terms of rollout. And recall, I think we said that it would take probably about a year to -- a 1.5 years or so to get to full rollout. That was just on the bakery items.

我想說的是，我們與 Kroger 的合作進展仍然符合預期。目前，我們的門市數量已達到約 700 家，以推出時間計算，已到今年年中。回想一下，我想我們說過，全面推出大概需要一年到一年半左右的時間。那隻是關於烘焙食品。

So a smaller number of stores will have no real impact on that at all overall. We're actually in the process of discussion with that customer specifically around, given the returns that they've seen as being as strong as they are, the ROI, how do we accelerate into some of the other categories historically planned to, including things like proteins and so forth as we move forward, Mike.

因此，總體而言，商店數量的減少不會產生任何實際影響。實際上，我們正在與該客戶進行討論，考慮到他們認為投資回報率如此之高，我們如何加速進入歷史上計劃的其他一些類別，包括蛋白質等，麥克。

John Dunigan, Jefferies.

傑富瑞的約翰·鄧尼根。

Thanks for taking my question, and congratulations as well on a good quarter in a tough environment.

感謝您回答我的問題，也祝賀您在艱難的環境下取得了良好的季度業績。

I wanted to switch to Embelex and Vestcom. Embelex, I'm a little bit less familiar with the business. It does seem like you do have some good visibility on that doing well in the back half of the year ahead of -- I think it was the 2026 World Cup. But

我想轉換到 Embelex 和 Vestcom。Embelex，我對這個業務不太熟悉。看起來你確實對今年下半年的表現有很好的預見性——我想是 2026 年世界盃。但

is this the type of business that will be pretty reliant on these larger, maybe global, types of sporting events? It's been a bit of a rough first half, which may be just because of consumer discretionary spending. So maybe you could spend a little time walking us through your expectations for growth in that business.

這種類型的業務是否非常依賴大型、甚至是全球性的體育賽事？上半年的情況有些艱難，這可能只是因為消費者可自由支配的支出。因此，也許您可以花一點時間向我們介紹您對該業務成長的期望。

And then with Vestcom, maybe just an update on how the rollout is going with CVS, anything you've learned or been surprised about either positively or negatively with that program.

然後對於 Vestcom，也許只是關於 CVS 推廣情況的更新，以及您對該計劃的了解或感到驚訝的正面或負面信息。

Sure. Thanks for the question, John. We touched on Embelex first. You're right. Our performance this first half of the year hasn't been where we had hoped it to be. But in reflection of where the overall apparel market is, we also see an impact of that as it's come through.

當然。謝謝你的提問，約翰。我們首先談到了 Embelex。你說得對。今年上半年我們的業績並沒有達到我們所期望的水平。但從整體服飾市場的現況來看，我們也看到了其帶來的影響。

Maybe if I break the Embelex business apart, recall, this is a business in which we provide decoration to garments largely in team sports -- that's one area -- and increasingly, in-stadium customization, where we actually run the hardware and the software for when you go to a stadium in professional sports in the United States and you want to embellish or customize the garment of your name. We're actually the backbone of pretty much all of that.

也許如果我將 Embelex 業務分開，回想一下，這項業務主要是為團體運動中的服裝提供裝飾 - 這是一個領域 - 而且越來越多地提供體育場內定制服務，當您在美國職業體育場參加比賽時，當您想裝飾或定制以您的名字命名的服裝時，我們實際上會運行硬體和軟體。事實上，我們是所有這些工作的中堅力量。

There's a second area where we continue to take the same technology, which is largely heat transfers, embroidered badges, and patches; and we actually provide those to the large performance brands around the world as they also do their own activity. Think about two largest performance brands in the world, one in Europe and the United. States.

在第二個領域，我們繼續採用相同的技術，主要是熱轉印、刺繡徽章和補丁；實際上，我們將這些技術提供給世界各地的大型性能品牌，因為他們也在進行自己的活動。想想世界上最大的兩個性能品牌，一個在歐洲，一個在美國。州。

And then the third one is we also provide that to ad hoc events where there's either team sports happening or they're trying to drive fan engagement. Increasingly in that piece, we're actually adding digital triggers to those embellishments so that you can get greater fan engagement directly with a brand or with your favorite player. And we have multiple examples of that where that's in flight at the moment.

第三，我們也為舉辦團隊運動或試圖推動粉絲參與的臨時活動提供這項服務。在這項作品中，我們實際上越來越多地在這些裝飾中添加數位觸發器，以便您可以直接與品牌或您最喜歡的球員進行更深入的粉絲互動。目前，我們已經有多個此類實例。

I'd say when I look at that overall, the biggest driver is actually, what I'd call, our large performance brand piece, which is still there. Some of those performance brands, I'm sure you know, haven't necessarily performed recently to their expectations as well, and that certainly had an impact on our volume. Part of that is also related then to the whole apparel tariff changes that we've seen as well.

我想說，從整體來看，最大的驅動力實際上是我們所謂的大型績效品牌部分，它仍然存在。我相信您知道，其中一些性能品牌最近的表現不一定達到預期，這肯定會對我們的銷售產生影響。這部分也與我們所看到的整體服裝關稅變化有關。

As I look forward, I think we're going to continue to see these three buckets. One bucket will be around how do our performance brands do, what I'd call the legacy part of our business. How do team sports continue? In fact, we have a high degree of confidence just largely because we continue to see customization, personalization being such a key driver.

展望未來，我認為我們將繼續看到這三個桶子。其中一個面向是關於我們績效品牌的表現如何，我稱之為我們業務的遺留部分。團隊運動如何繼續進行？事實上，我們之所以有如此高的信心，很大程度上是因為我們繼續看到客製化、個人化成為關鍵驅動力。

We anticipate the whole segment to be growing in high single digits over a long period. And then the final one is what we call these episodic events like the World Cup. They bring a unique coalescing of volume and opportunity for us to leverage our technology when international teams or national teams are trying to do something in a specific sporting event.

我們預計整個行業將在很長一段時間內保持高個位數成長。最後一個是我們所說的像世界盃這樣的偶發事件。當國際隊或國家隊試圖在特定體育賽事中做某事時，它們為我們帶來了獨特的數量和機會的融合，讓我們能夠利用我們的技術。

Let me just turn to Vestcom, John. We're very pleased with the rollout that we've been doing with CVS. Recall at Vestcom, while we deliver analog price, shelfage pricing, and media solutions, it's largely actually a data composition engine. We take a lot of data in -- pricing data, planning data, promotional data -- and we ingest that and effectively then, in a proprietary fashion, put that out into shelfage labeling.

讓我來談談 Vestcom，約翰。我們對與 CVS 合作推出的新產品感到非常滿意。回想一下 Vestcom，雖然我們提供類比價格、貨架定價和媒體解決方案，但它實際上在很大程度上是一個資料組合引擎。我們收集了大量數據——定價數據、計劃數據、促銷數據——然後我們以專有的方式有效地將這些數據放入貨架標籤中。

Most of our growth in the second quarter was down to do with CVS. You also know in the macro environment that one of the other drugstore companies went into Chapter 11, so that had a small impact negatively. We also saw growth in some of our other customers that we have in this environment, both in our grocery and dollar store customers as well, next to a 10% growth.

我們第二季的成長主要歸功於 CVS。您也知道，在宏觀環境下，另一家藥局公司進入了破產保護程序，因此這產生了較小的負面影響。我們也看到，在這種環境下，我們的其他一些客戶，包括雜貨店和一元商店的客戶，也都實現了接近 10% 的成長。

And as we look forward, we're going to continue to see, I think, solid growth as we go to the back end this year. And I do think this is a business for us that has brought a lot of resilience to our Solutions Group. When things are cyclically challenged, ultimately in retail, you either see two things happen.

展望未來，我認為，我們將繼續看到今年後期的穩健成長。我確實認為這項業務為我們的解決方案集團帶來了很大的彈性。當零售業面臨週期性挑戰時，你最終會看到兩件事發生。

One, you see pricing changes, which benefits our business, or you see promotional changes, which again, because we're leveraging that same real estate, we're able to sell more media solutions on the back of it.

首先，您會看到價格變化，這對我們的業務有利；其次，您會看到促銷變化，因為我們利用相同的房地產，所以我們能夠藉此銷售更多的媒體解決方案。

Josh Spector, UBS.

瑞銀的喬希·斯佩克特。

Hi. Good morning. I had a question on the tariff cost impacts within 2Q and implied in 3Q. You made some comments about how you're taking some strategic pricing and also reallocating some of your sourcing to offset that. But I'd be curious to know if you think you're offsetting that cost within the quarter or within 2Q and 3Q, if there's a lag to that that you would potentially make up later in the year or maybe into next year.

你好。早安.我對第二季的關稅成本影響以及第三季隱含的影響有一個疑問。您對如何採取一些策略性定價以及如何重新分配部分採購以抵消此影響發表了一些評論。但我很好奇，您是否認為您可以在本季度或第二季度和第三季度內抵消該成本，是否存在滯後，您是否有可能在今年晚些時候或明年彌補。

Yeah. So the inflationary impact from the tariff really started impacting us midway through the second quarter, given that we had inventory on hand and things when the tariff first went into effect. So I would say overall, that was about a low or very low single-digit impact from an inflationary perspective in Q2.

是的。因此，考慮到關稅剛生效時我們手頭上有庫存，關稅帶來的通膨影響實際上在第二季中期開始對我們產生影響。因此，我認為總體而言，從第二季的通膨角度來看，這大約是一個低或非常低的個位數影響。

And overall, we largely offset that in the quarter with tariff-related surcharges as well as some sourcing shifts. So we did both of those things. And obviously, we started that as soon as we found out about the tariffs on the sourcing shift piece. And that allowed us to offset that within the quarter.

總體而言，本季度我們透過關稅相關附加費以及一些採購轉變在很大程度上抵消了這一影響。所以我們做了這兩件事。顯然，我們一發現採購班次的關稅問題，就開始這麼做了。這使我們能夠在本季度內抵消這一損失。

We will see some sequential further inflation, just given we'll have a full quarter of the tariff impacts in Q3 versus about a half a quarter in the second quarter. But again, we'd expect to offset that with surcharges and sourcing shifts.

我們將看到進一步的連續通膨，因為第三季將有整整四分之一的關稅影響，而第二季只有大約半個季度。但同樣，我們希望透過附加費和採購轉變來抵銷這一影響。

Now that's still waiting to see what happens in the next couple of weeks with areas like Europe, Malaysia, et cetera, where we have some open tariff items, I guess, for August 1. So we'll see what happens with those and if there's something further we need to do to manage that.

現在我們仍在等待觀察未來幾週歐洲、馬來西亞等地區的情況，我想這些地區對於 8 月 1 日有一些開放的關稅項目。因此，我們將觀察這些情況將如何發展，以及是否需要採取進一步措施來應對這些問題。

George Staphos, Bank of America.

美國銀行的喬治‧斯塔福斯 (George Staphos)。

Thanks very much for taking the follow on. Hi, guys. A couple of things in sequence here. Number one, what were the exit rates, if you can talk to this, in your materials businesses into the third quarter?

非常感謝您繼續關注。嗨，大家好。這裡有幾件事情按順序發生。第一，請問您能談談第三季材料業務的退出率是多少嗎？

Second question, you gave us a bit more detail in terms of what's happening with Embelex. When should we expect the volumes there to improve? The narrative this year has been we should expect at some point to pick up as we get into '26 ahead of World Cup. When will we actually see that? Do you expect that to be a positive in fourth quarter or really do we have to wait until. 26?

第二個問題，您向我們提供了有關 Embelex 的更多細節。我們什麼時候可以預期那裡的銷售量會有所提升？今年的情況是，隨著我們進入 2026 年世界杯，我們應該期待在某個時候有所回升。我們什麼時候才能真正看到這一點？您是否預計這在第四季度會產生積極影響，還是我們真的必須等到…26？

And then lastly, you talked about all the innovation, Deon, that's happening in food, logistics, and so on in IL. However, the 70% of your business that remains relatively stuck right now in general retail and apparel, what are you doing there from an innovation standpoint that will ultimately get you growth? Or are you just right now stuck because of tariffs and where they're at in the uncertainty? Thank you guys. Good luck in the quarter.

最後，Deon，您談到了伊利諾伊州食品、物流等領域的所有創新。然而，目前您的 70% 的業務仍然停留在一般零售和服裝領域，從創新的角度來看，您在這些領域採取了哪些最終能帶來成長的措施？或者您現在是否因為關稅及其不確定性而陷入困境？謝謝你們。祝本季好運。

Thanks, George. I'll go with this in reverse order. Let me just talk about innovation in apparel specifically for IL. We are continuing to really lean forward in the innovation area there, George. And I think the most visible one we actually did was really building on our loss detection suite of products, which we have brought to the market in a proprietary fashion, but largely with Inditex. But there's a lot of interest from other apparel customers.

謝謝，喬治。我將按照相反的順序進行。讓我專門談談 IL 的服裝創新。喬治，我們將繼續在創新領域向前邁進。我認為我們所做的最引人注目的事情就是真正建立我們的損失檢測產品套件，我們以專有的方式將其推向市場，但主要與 Inditex 合作。但其他服裝客戶也表現出濃厚的興趣。

The second area we're continuing to look at is just the efficacy of how we can improve using our inlay design capability. How do you improve overall variable read rates as you go through a more dense store? How do you use less power to be able to read more activity in the store as well?

我們繼續關注的第二個領域是如何提高鑲嵌設計能力的功效。當您穿過更密集的商店時，如何提高整體可變讀取率？如何使用更少的電力來讀取商店中的更多活動？

And all these things come together ultimately to then center around how do we help apparel retailers further drive towards if they are interested in, for example, self-checkout, which we've done already for customers like Fast Retailing, which is Uniqlo as you know it; and also Decathlon in Europe.

所有這些事情最終都集中在我們如何幫助服裝零售商進一步推動他們感興趣的業務，例如自助結帳，我們已經為迅銷集團（也就是大家所知道的優衣庫）和歐洲的迪卡儂等客戶實現了這項業務。

So our innovation efforts have not stopped in apparel. And I think given our market leadership position over there, it's the one area we continue to lean forward in. That's at the customer level. We also continue to drive innovation at what I call our operating level, largely in how do we make sure that we maintain our low-cost leadership position, better assets, faster different processes?

因此，我們的創新努力並未止步於服裝領域。我認為，鑑於我們在那裡的市場領導地位，這是我們繼續向前邁進的一個領域。這是客戶層面的。我們也持續在營運層面推動創新，主要是如何確保我們維持低成本的領導地位、更好的資產、更快的不同流程？

And we also have a number of proprietary innovations that will be coming out in the next couple of years around, how do we actually improve and accelerate that speed in that regard? On Embelex, I would say we're -- I know we're going to be expecting a growth really in the fourth quarter. That's when we'll see most of the growth start to come through from the Embelex perspective.

我們還有一些專有創新將在未來幾年內推出，我們如何在這方面實際改進和加快速度？關於 Embelex，我想說我們—我知道我們預計第四季將實現成長。到那時，我們將從 Embelex 的角度看到大部分成長開始實現。

My assumption, though, George, is still anchored on if we don't see any significant deterioration in the broader apparel piece. Because apparel, as a result of tariffs, also has an impact in Embelex, as I think I explained earlier to John overall.

不過，喬治，我的假設仍然建立在如果我們沒有看到更廣泛的服裝領域出現任何明顯的惡化的基礎上。因為服裝由於關稅而對 Embelex 也產生了影響，正如我之前向 John 解釋過的那樣。

In terms of the exit rates for our Materials Group, we started off slightly slower in April in the second quarter than we anticipated and were slightly better in June. And our exit rates as we go through into July are looking similar to where we were in June, which is relatively flat overall.

就我們材料集團的退出率而言，第二季 4 月的退出率比我們預期的略低，6 月則略有改善。進入 7 月份，我們的退出率與 6 月份的水平相似，總體而言相對穩定。

Mr. Gilchrist, there are no further questions at this time. I will now turn the call back to you for any closing remarks.

吉爾克里斯特先生，現在沒有其他問題了。現在我將把電話轉回給您，請您做最後發言。

Thank you, Tiffany. To recap, we delivered a solid quarter in a dynamic environment. We are well prepared for a variety of macro scenarios and well positioned to deliver superior value through the cycle.

謝謝你，蒂芙尼。總而言之，我們在充滿活力的環境中取得了穩健的季度表現。我們已經為各種宏觀情景做好了充分準備，並有能力在整個週期中提供卓越的價值。

On a personal note, I look forward to working closely with all of you in the Avery Dennison Investment Community in the months and years ahead. Thank you for joining today. This now concludes our call.

就我個人而言，我期待在未來的歲月裡與艾利丹尼森投資界的所有人密切合作。感謝您今天的加入。我們的通話到此結束。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。