BowFlex Inc (BFX) 2020 Q2 法說會逐字稿

Greetings, and welcome to the Nautilus, Inc. Second Quarter 2020 Earnings Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Nautilus, Inc. 2020 年第二季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Ms. Deirdre Thomson of ICR. Please go ahead, Ms. Thomson.

現在我很高興向您介紹主持人，ICR 的 Deirdre Thomson 女士。請繼續，湯姆森女士。

Thank you. Good afternoon, everyone. Welcome to the Nautilus Second Quarter 2020 Conference Call. Participants on the call from Nautilus are Jim Barr, Chief Executive Officer; Aina Konold, Chief Financial Officer; Chris Quatrochi, Senior Vice President of Product Development; and Bill McMahon, Special Assistant to the CEO.

謝謝。大家下午好。歡迎參加 Nautilus 2020 年第二季度電話會議。參加 Nautilus 電話會議的包括首席執行官吉姆·巴爾 (Jim Barr)；艾娜·科諾德，首席財務官； Chris Quatrochi，產品開發高級副總裁；和首席執行官特別助理比爾·麥克馬洪(Bill McMahon)。

Please note, this call is being webcast and will be available for replay for the next 14 days. We will be happy to take your questions at the conclusion of our prepared remarks. Our earnings release was issued today at 1:05 p.m. Pacific Time and may be downloaded from our website at nautilusinc.com on the Investor Relations page. The earnings release includes a reconciliation of the non-GAAP financial measures mentioned in today's call to the most directly comparable GAAP measures.

請注意，本次電話會議正在網絡直播，並將在接下來的 14 天內重播。在我們準備好的發言結束後，我們很樂意回答您的問題。我們的財報於今天下午 1:05 發布。太平洋時間，可從我們的網站 nautilusinc.com 的投資者關係頁面下載。收益發布包括今天電話會議中提到的非公認會計原則財務指標與最直接可比的公認會計原則指標的調節。

For today's call, we have a presentation accompanying the call that management will refer to during their prepared remarks. And on Slide 2 is our full safe harbor statement, which we ask everyone to read. You can access the presentation by going to nautilusinc.com, then clicking on the Investors tab and then click on the Events and Webcast, and the presentation will be there.

對於今天的電話會議，我們將在電話會議中附上一份演示文稿，管理層將在準備好的發言中參考該演示文稿。第 2 張幻燈片是我們完整的安全港聲明，我們要求每個人都閱讀。您可以通過訪問 nautilusinc.com 來訪問演示文稿，然後單擊“投資者”選項卡，然後單擊“活動和網絡廣播”，演示文稿就會在那裡。

I would like to remind everyone that during this conference call, Nautilus management will make certain forward-looking statements. These forward-looking statements are based on the current beliefs of management and information currently available to us. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control and ability to predict.

我想提醒大家的是，在本次電話會議期間，鸚鵡螺管理層將做出某些前瞻性陳述。這些前瞻性陳述基於管理層當前的信念和我們目前掌握的信息。此類前瞻性陳述並不能保證未來業績，因此，不應過度依賴它們。我們的實際結果將受到已知和未知的風險、趨勢、不確定性以及超出我們控制和預測能力的因素的影響。

For additional information concerning these factors, please refer to the safe harbor statement and to our SEC filings, which can be found in the Investor Relations section of our website.

有關這些因素的更多信息，請參閱安全港聲明和我們的 SEC 文件，這些文件可以在我們網站的投資者關係部分找到。

And with that, it is my pleasure to turn the call over to Nautilus' CEO, Mr. Jim Barr.

至此，我很高興將電話轉給 Nautilus 首席執行官 Jim Barr 先生。

Thank you, Deirdre. Good afternoon, everyone, and thank you for joining today's call. I'm incredibly proud of our second quarter results and the truly amazing efforts from our team to achieve them. Operational improvements that we implemented in late 2019 are beginning to bear fruit. We built on our Q4 2019 change in trajectory by delivering in Q1 our first positive comp in over 2 years. And now in Q2, producing these extremely strong financial results.

謝謝你，迪爾德麗。大家下午好，感謝您參加今天的電話會議。我對我們第二季度的業績以及我們團隊為實現這些業績所做的真正令人驚嘆的努力感到非常自豪。我們在 2019 年底實施的運營改進已開始取得成果。我們在 2019 年第四季度的軌跡變化基礎上，在第一季度交付了兩年多以來的第一個積極補償。現在在第二季度，產生了這些極其強勁的財務業績。

Despite being supply-constrained for the entire quarter, our net sales nearly doubled, up 94% year-over-year. This makes it our best year-over-year growth since becoming a public company, our best second quarter in over a decade and one of our top quarters period in our long history.

儘管整個季度供應緊張，但我們的淨銷售額幾乎翻了一番，同比增長 94%。這使得它成為我們成為上市公司以來最好的同比增長，是我們十多年來最好的第二季度，也是我們悠久歷史上最好的季度之一。

Gross margin rate expanded almost 1,200 basis points to 42%. And most importantly, adjusted EBITDA swung to positive $25 million from negative $10 million in the year ago quarter, markedly improving our liquidity to fuel our short- and long-term growth opportunities.

毛利率擴大近 1,200 個基點至 42%。最重要的是，調整後的 EBITDA 從去年同期的負 1000 萬美元增至正值 2500 萬美元，顯著改善了我們的流動性，為我們的短期和長期增長機會提供了動力。

We did not experience the second quarter seasonal decline that we typically see, with demand strongly accelerating from Q1 levels. Our performance was driven by accelerated demand of at-home fitness due to COVID-19 gym closures, broad growth across both segments, in our consumer-focused brands and products and excellent execution in response to what proved to be a full sustained quarter of enhanced demand.

我們沒有經歷通常看到的第二季度季節性下降，需求較第一季度水平大幅加速。我們的業績是由以下因素推動的：由於COVID-19 健身房關閉，家庭健身需求加速增長；我們以消費者為中心的品牌和產品在兩個細分市場都實現了廣泛增長；以及出色的執行力，以應對事實證明是一個全面持續的季度增強要求。

In addition, despite incredible efforts in our supply chain and a dramatic increase in our manufacturing capacity, we ended Q2 with $34 million in back orders. While we wish we could have satisfied even more customers, this gives us a nice start to Q3.

此外，儘管我們在供應鏈方面付出了令人難以置信的努力，並且製造能力大幅提高，但我們在第二季度末仍留下了 3400 萬美元的缺貨訂單。雖然我們希望能夠滿足更多客戶，但這為我們第三季度提供了一個良好的開端。

Next, I'd like to remind everyone of our company's priorities as we navigate the extended COVID-19 pandemic. Our first priority remains the health and safety of our employees and partners. I'm happy to report that, to our knowledge, none of our approximately 500 employees has tested positive to date.

接下來，我想提醒大家，在應對新冠肺炎 (COVID-19) 疫情蔓延之際，我們公司的優先事項。我們的首要任務仍然是員工和合作夥伴的健康和安全。我很高興地報告，據我們所知，迄今為止，我們約 500 名員工中沒有一人檢測結果呈陽性。

Second, our mission and culture drives us to deliver for our customers, especially in their time of greatest need. In response, we massively expanded production capacity and supply chain throughput. Our distribution centers, customer care and the rest of our operations remained opened and at elevated levels of activity throughout the quarter.

其次，我們的使命和文化促使我們為客戶提供服務，尤其是在他們最需要的時候。為此，我們大規模擴大了產能和供應鏈吞吐量。我們的配送中心、客戶服務和其他業務仍然開放，整個季度的活動水平都很高。

Third, we are leveraging all our capabilities of our assets, including strength of our brands, our quality products and our omnichannel model to make the most of the at-home fitness tailwind. We want to maximize this opportunity and have responded well in the short term. And while doing so, we have built confidence, new skills, capabilities and attracted new customers to the company that I believe will serve us well in the long term. I'll cover some of these with specific examples in a moment.

第三，我們正在利用我們資產的所有能力，包括我們的品牌實力、我們的優質產品和我們的全渠道模式，以充分利用家庭健身的順風車。我們希望最大限度地利用這一機會，並在短期內做出了良好的反應。在此過程中，我們建立了信心、新技能、新能力，並吸引了新客戶加入公司，我相信從長遠來看，這將為我們帶來良好的服務。稍後我將通過具體示例介紹其中一些內容。

Finally, while we were delivering strong short-term results, we also remain focused on the importance of the long-term transformation of our company. We are continuing to fix the underlying issues that led to our multiyear decline. Topics that we've highlighted previously. And we've made significant progress on our insights-driven, long-term vision and multiyear strategic plan that I've mentioned in the quarterly call since I arrived a year ago.

最後，在我們提供強勁的短期業績的同時，我們也仍然關注公司長期轉型的重要性。我們正在繼續解決導致我們多年下滑的根本問題。我們之前強調過的主題。自一年前我上任以來，我們在季度電話會議中提到的以洞察力為導向的長期願景和多年戰略計劃方面已經取得了重大進展。

We have already delivered several elements of this plan and some of the growth from them and believe that our long-term opportunity has been enhanced by the events of the quarter and the anticipated continuation of the at-home fitness trend. While our results were undeniably aided by the tailwind from gym closures, the main character of our Q2 and first half performance story is our team, their resilience, agility and incredible response to unexpected challenges and opportunities.

我們已經交付了該計劃的幾個要素以及其中的一些增長，並相信本季度的事件和預期的家庭健身趨勢的持續將增強我們的長期機會。雖然我們的業績無可否認地受到了健身房關閉的推動，但我們第二季度和上半年業績故事的主角是我們的團隊，他們的韌性、敏捷性以及對意外挑戰和機遇的令人難以置信的反應。

I would like to share some examples of the remarkable response this past quarter. They include: expansion of production and supply chain throughput; agile and decisive actions to drive profitability; investing in our omnichannel approach and retailer relationships; accelerating progress on our own websites; and keeping our 2020 new product launches, a major step in our transformation on track despite logistical challenges.

我想分享一些上個季度取得的顯著反應的例子。它們包括： 擴大生產和供應鏈吞吐量；採取敏捷而果斷的行動來提高盈利能力；投資於我們的全渠道方法和零售商關係；加快我們自己網站的進展；儘管面臨物流方面的挑戰，但仍保持 2020 年新產品的發布，這是我們轉型步入正軌的重要一步。

Our supply chain from manufacturing to logistics did some incredible work to respond to accelerated demand and a rapidly evolving outlook of the likely duration of COVID-related impacts. As the quarter unfolded, and we saw sustained elevated demand, we move to massively increase production capacity and supply chain throughput.

我們從製造到物流的供應鏈做了一些令人難以置信的工作，以應對不斷增長的需求以及快速變化的新冠肺炎相關影響可能持續時間的前景。隨著本季度的展開，我們看到需求持續增長，我們開始大幅提高產能和供應鏈吞吐量。

For example, in the quarter, we saw an incredible 500% increase in IC bike production capacity. To do this in our asset-light manufacturing model requires having built long-term partnerships and goodwill, which can then be leveraged at a time like this. We are grateful to our production partners and suppliers who themselves responded admirably and with agility to profound and unanticipated levels of demand.

例如，在本季度，我們看到 IC 自行車產能令人難以置信地增長了 500%。要在我們的輕資產製造模式中做到這一點，需要建立長期的合作夥伴關係和商譽，然後可以在這樣的時候加以利用。我們感謝我們的生產合作夥伴和供應商，他們本身對深刻和意想不到的需求水平做出了令人欽佩和敏捷的反應。

On top of enhanced production capacity, we increased the flow-through of inventory through outstanding execution and planning, purchasing and inbound logistics. Our team worked quickly to find solutions to get our goods from manufacturers to the ports despite COVID-19 restrictions, and then secured the quickest vessels to get the product to our DCs.

除了提高生產能力外，我們還通過出色的執行和計劃、採購和入庫物流增加了庫存周轉。儘管受到新冠肺炎 (COVID-19) 的限制，我們的團隊仍迅速尋找解決方案，將我們的貨物從製造商運至港口，然後確保最快的船隻將產品運至我們的配送中心。

We fast-boated over half of our containers this past quarter to help close Q1 back orders. Once the product was at the port, the team used a variety of strategies to reduce the lead time from port to customer, including cross-docking at the port and extra shifts in the DCs. To illustrate the overall improved throughput, though the second quarter is typically our lowest volume quarter, we shipped about the same volume in Q2 as we did in Q4 of '19.

上個季度我們快運了一半以上的集裝箱，以幫助結束第一季度的延期交貨訂單。產品到達港口後，該團隊採用了多種策略來縮短從港口到客戶的交貨時間，包括在港口進行越庫轉運和在配送中心進行額外班次。為了說明整體吞吐量的提高，儘管第二季度通常是我們銷量最低的季度，但我們第二季度的發貨量與 19 年第四季度的發貨量大致相同。

Our management team also made key agile decisions to drive profitability. For example, we took reasonable price increases on key high demand products. We sharply decreased the proportion of unit sales on promotion, leveraged our current and anticipated volume to gain cost improvements from suppliers and cut back on media spending.

我們的管理團隊還做出了關鍵的敏捷決策以提高盈利能力。例如，我們對關鍵的高需求產品進行了合理的提價。我們大幅降低了促銷單位銷售的比例，利用我們當前和預期的銷量從供應商那裡獲得成本改善並削減媒體支出。

We continued to invest in the long run health of our omnichannel approach, utilizing an allocation decision framework intended to balance inventory between direct and retail segments. We leverage retail partners to provide our customers with greater ability to engage with and buy our products when, where and how they prefer. This quarter, our retail partners also experienced elevated demand for our products as well as acceleration of their own digital transformations, from changes in consumer behavior that I believe will have lasting benefits for us both.

我們繼續投資於全渠道方法的長期健康發展，利用旨在平衡直接和零售部門之間的庫存的分配決策框架。我們利用零售合作夥伴，為客戶提供更大的能力，讓他們能夠在他們喜歡的時間、地點和方式參與和購買我們的產品。本季度，我們的零售合作夥伴也經歷了對我們產品的需求增加以及他們自己的數字化轉型的加速，這是由於消費者行為的變化，我相信這將為我們雙方帶來持久的好處。

Our retail partners drove growth through curbside pickup capabilities that did not exist before the pandemic hit, and they accelerated the growth of their fitness categories on their dotcoms.

我們的零售合作夥伴通過路邊提貨能力推動了增長，而這種能力在大流行爆發之前並不存在，並且他們加速了其網絡公司健身類別的增長。

We believe trends accelerated in the pandemic will have long-term benefit for Nautilus by reducing traditional barriers, such as floor space constraints and price point ceilings of brick-and-mortar retail.

我們相信，疫情中加速的趨勢將通過減少傳統障礙（例如佔地面積限制和實體零售的價格上限）而為鸚鵡螺帶來長期利益。

We also used the moment to build relationships and gain greater scale with new retail partners. A new retail customer, Best Buy, quickly rose to become a top retailer in sales volume in the first full quarter of offering our products on their website. Our own website saw a 300% increase in visits, driven by an amazing 700% increase in organic traffic as consumers sought out our brands and products. To capture this demand, our website's added improvements in SEO, content, ability to take orders with longer extended promise periods, lead capture for out-of-stocks and in-stock notifications and ways to promote slower moving products.

我們還利用這個機會與新零售合作夥伴建立關係並擴大規模。新的零售客戶百思買在其網站上提供我們的產品後，在第一個完整季度迅速成為銷量最高的零售商。由於消費者尋找我們的品牌和產品，自然流量驚人地增加了 700%，我們自己的網站訪問量增加了 300%。為了滿足這一需求，我們的網站在搜索引擎優化、內容、接受具有更長承諾期限的訂單的能力、缺貨和有貨通知的潛在客戶捕獲以及促銷緩慢移動產品的方法方面進行了改進。

While we pulled back on television advertising, we continued investing in digital channels, such as search and social media. We also saw disproportionate growth in new customers introduced to our brands and products. Finally, we overcame restrictions in travel and working face-to-face to keep our 2020 new product road map builds, associated advertising production and overall launch plans largely on schedule. I'm excited to tell you more about our 2020 new products shortly.

在我們減少電視廣告的同時，我們繼續投資數字渠道，例如搜索和社交媒體。我們還看到引入我們品牌和產品的新客戶數量出現了不成比例的增長。最後，我們克服了旅行和麵對面工作的限制，使我們的 2020 年新產品路線圖構建、相關廣告製作和總體發布計劃基本按計劃進行。我很高興很快就能向您介紹更多有關我們 2020 年新產品的信息。

Before I turn the call over to Aina, I thought I would cover one other topic. In such an unusual time where people's lives have been altered so significantly and industries, including our own, have been changed so profoundly, what will the impact be? Given how rapidly the situation is evolving and the typical seasonal trends have proven less relevant in predicting the future, no one can answer such questions with any degree of certainty.

在將電話轉給艾娜之前，我想談談另一個話題。在這樣一個非常時期，人們的生活發生瞭如此巨大的變化，包括我們自己在內的各行各業都發生瞭如此深刻的變化，會產生什麼影響？鑑於形勢發展的速度有多快，而且事實證明，典型的季節性趨勢在預測未來方面不太相關，沒有人能夠以任何程度的確定性回答此類問題。

But I thought it might be helpful to share how we're thinking about our business for the rest of the year and into 2021 based on what we've seen so far, and the assumption underlying the decisions to this point. We believe that a component of the COVID effect on our business is undeniably temporary. As gyms open and their capacity increases over the next 12 to 18 months, demand for our products will likely decline from the current elevated levels. However, we believe there is another portion of the COVID impact that is longer term and perhaps even permanent.

但我認為，根據我們迄今為止所看到的情況以及目前決策背後的假設，分享我們對今年剩餘時間和 2021 年業務的看法可能會有所幫助。我們認為，新冠疫情對我們業務的影響無疑是暫時的。隨著健身房在未來 12 至 18 個月內開業且容量增加，對我們產品的需求可能會從目前的較高水平下降。然而，我們認為新冠疫情的另一部分影響是長期的，甚至可能是永久性的。

In our own research, 12% to 25% of gym goers are saying that they will never go back to the gym. They will focus on other solutions, including home fitness permanently. We also believe that a portion of those who say they will eventually return to gyms, either because they think it's safer sometime or when there's a vaccine, will rely 100% -- well, not rely 100% on the availability of their gym. They were caught without options when the gym closure orders began and felt a loss of control in an important aspect of their life.

根據我們自己的研究，12% 到 25% 的健身愛好者表示他們永遠不會再去健身房。他們將專注於其他解決方案，包括永久的家庭健身。我們還相信，那些說自己最終會回到健身房的人中的一部分，無論是因為他們認為某個時候會更安全，還是因為有疫苗，他們會100% 依賴——好吧，而不是100% 依賴健身房的可用性。當健身房關閉令開始時，他們別無選擇，並感到生活的一個重要方面失去了控制。

In their new normal, we believe they will invest in home fitness solutions as a hedge against another outbreak and will balance their workouts between the gym and home differently than they did before the pandemic. Digital solutions will help by bringing aspects of the gym experience home. Further, the supply of available gym membership options will likely be at least temporarily disrupted because, unfortunately, some of the gyms will not survive.

在他們的新常態下，我們相信他們將投資家庭健身解決方案，以對沖另一場疫情，並將以與大流行之前不同的方式平衡健身房和家庭之間的鍛煉。數字解決方案將有助於將健身房體驗的各個方面帶回家。此外，可用的健身房會員選項的供應可能至少會暫時中斷，因為不幸的是，一些健身房將無法生存。

Due to these factors, we think the at-home fitness market will experience important growth. The size of the gym membership market is roughly 10x that of the at-home fitness equipment market. We have already seen evidence of movement from the former to the latter and envision a less defined boundary between the 2.

由於這些因素，我們認為家庭健身市場將經歷重要增長。健身房會員市場的規模大約是家庭健身器材市場的10倍。我們已經看到了從前者轉向後者的證據，並設想了兩者之間的界限不太明確。

Thus, companies like Nautilus, who are well-established in the at-home market and have strong brands in a portfolio of leading products, should have an enhanced opportunity. There are clearly barriers to capturing the incremental demand, such as short-term supply availability, readiness of respective solutions to meet the needs of gym goers and fierce competition, including some upstart competitors.

因此，像鸚鵡螺這樣在國內市場頗有建樹並在領先產品組合中擁有強大品牌的公司應該會獲得更大的機會。捕捉增量需求顯然存在障礙，例如短期供應可用性、各自解決方案是否準備好滿足健身愛好者的需求以及激烈的競爭（包括一些新貴競爭對手）。

Longer-term, important factors such as reliable products, well-known brands, and strong established go-to-market solutions will play an important role. The situation is highly uncertain and rapidly evolving, but has already impacted our inventory and supply planning, our go-forward strategy, our product development road map, both physical and digital and our investment posture. We will keep reading the market and will evolve as the situation develops.

從長遠來看，可靠的產品、知名品牌和強大的上市解決方案等重要因素將發揮重要作用。這種情況高度不確定且迅速變化，但已經影響了我們的庫存和供應計劃、我們的前進戰略、我們的實體和數字產品開發路線圖以及我們的投資態勢。我們將繼續觀察市場，並隨著形勢的發展而變化。

With that, I'd like to turn it over to our CFO, Aina Konold, who will go over financial results in more detail. Aina?

接下來，我想將其交給我們的首席財務官 Aina Konold，她將更詳細地討論財務業績。艾娜？

Thanks, Jim, and good afternoon, everyone. As Jim mentioned, in Q2, we saw a significant surge in consumer demand for our high-quality home fitness equipment. Record-setting traffic to our websites and continued strong orders from our retail partners reflect the power of our brands. We're also quite pleased about the expansion in the gross margin rate. A key metric we focus on as we make progress on our path to sustainable, profitable growth.

謝謝吉姆，大家下午好。正如吉姆提到的，在第二季度，我們看到消費者對我們高品質家庭健身設備的需求大幅增長。我們網站的創紀錄流量和來自零售合作夥伴的持續強勁訂單反映了我們品牌的力量。我們對毛利率的擴大也感到非常高興。這是我們在實現可持續盈利增長的道路上取得進展時關注的關鍵指標。

I'll begin today by speaking to total company P&L results for Q2 2020 with comparisons to Q2 2019. As a reminder, we've hired William Blair to help us with the sale of Octane Fitness, our commercial-focused business.

今天，我將首先介紹 2020 年第二季度的公司總損益結果，並與 2019 年第二季度進行比較。提醒一下，我們已聘請 William Blair 來幫助我們出售 Octane Fitness（我們的商業業務）。

As a result this quarter, we recognized a loss of $29 million on the disposal group. In Q2 last year, we booked a $72 million impairment of goodwill and other intangible assets. Both of these noncash charges are included in operating expenses. The P&L that I'll be speaking to now is adjusted to remove the impact of both of these onetime significant charges. Please see our press release and our website for a reconciliation of these non-GAAP numbers to our GAAP reported results.

結果，本季度我們確認了處置集團的虧損 2900 萬美元。去年第二季度，我們計提了 7200 萬美元的商譽和其他無形資產減值。這兩項非現金費用均包含在運營費用中。我現在要講的損益表經過調整，以消除這兩項一次性重大費用的影響。請參閱我們的新聞稿和我們的網站，了解這些非 GAAP 數據與我們的 GAAP 報告結果的對照表。

Net sales almost doubled to $114 million compared to last year's $59 million. As Jim noted earlier, this is the best Q2 sales result in the past decade. The meaningful uptick in our sales trajectory is a result of our team's ability to rapidly pivot and take advantage of the surge in demand that began in March when stay-at-home orders first went into effect. Our team quickly rebooted our supply chain once China eased COVID-19 restrictions and then they accelerated it, increasing output on some of our best-selling products by about 500%.

與去年的 5,900 萬美元相比，淨銷售額幾乎翻了一番，達到 1.14 億美元。正如吉姆之前指出的，這是過去十年來最好的第二季度銷售業績。我們的銷售軌跡顯著上升是因為我們的團隊能夠快速調整併利用自三月份居家訂單首次生效以來需求激增的結果。中國放寬了對 COVID-19 的限制後，我們的團隊迅速重新啟動了我們的供應鏈，然後又加速了這一進程，將我們一些最暢銷產品的產量增加了約 500%。

Although we significantly increased production capacity and we invested in expedited shipping costs, supply was still insufficient to meet demand in the quarter. Our most popular products have been on extended promise periods on our websites and out of stock in our retail partners. We entered Q3 with $34 million in back orders and are pulling all levers to get products to our customers as quickly as possible. Gross margin rate increased by almost 1,200 basis points to 42%. Gross profit was $47 million, $30 million higher than last year. Strong execution across both segments was a key driver of the increase. Favorable mix was also a factor.

儘管我們顯著提高了產能並投資了加急運輸成本，但本季度的供應仍然不足以滿足需求。我們最受歡迎的產品在我們的網站上已延長承諾期，並且在我們的零售合作夥伴中缺貨。進入第三季度時，我們有 3400 萬美元的延期交貨訂單，我們正在竭盡全力盡快將產品交付給客戶。毛利率增長近 1,200 個基點至 42%。毛利潤為 4700 萬美元，比去年增加 3000 萬美元。這兩個部門的強勁執行力是增長的關鍵驅動力。有利的組合也是一個因素。

Direct was 44% of sales this year versus 35% last year. And for the first time since Q4 '17, we had year-over-year growth in sales of our higher-margin Max Trainer line.

今年直接銷售佔銷售額的 44%，而去年為 35%。自 2017 年第 4 季度以來，我們利潤率較高的 Max Trainer 系列的銷售額首次實現同比增長。

In COGS, we saw leverage on fixed costs, offset by continued pressure on product landed costs. Products we import from China are subject to a 7.5% tariff versus no tariff last year, and we've continued to incur extra fees to expedite shipments. And lastly, overall shipping costs are rising, driven by lower supply as ocean carriers have reduced a number of sailings.

在銷貨成本方面，我們看到固定成本的槓桿作用被產品到岸成本的持續壓力所抵消。我們從中國進口的產品被徵收 7.5% 的關稅，而去年則沒有關稅，而且我們繼續收取額外費用以加快發貨。最後，由於海運承運商減少了航班數量，供應減少，導致總體運輸成本上升。

Adjusted operating expenses were 18% lower, declining to $25 million or 22% of net sales. Selling and marketing expenses were down 29% to $12 million or 11% of net sales compared to $18 million or 30% of net sales. The decrease in expense was primarily in advertising. As this year, we spent $2 million versus $7 million last year. Customer acquisition costs were meaningfully lower as the company pulled back on paid advertising, given strong organic demand and inventory scarcity.

調整後運營費用下降 18%，降至 2500 萬美元，占淨銷售額的 22%。銷售和營銷費用下降了 29%，降至 1,200 萬美元，占淨銷售額的 11%，而從 1,800 萬美元，占淨銷售額的 30% 下降。費用的減少主要是在廣告方面。今年我們花費了 200 萬美元，而去年我們花費了 700 萬美元。鑑於強勁的有機需求和庫存稀缺，隨著該公司減少付費廣告，客戶獲取成本顯著降低。

R&D costs were down 3% to $4 million or 3% of net sales compared to $4 million or 7% of net sales last year, driven by lower maintenance expenses related to our JRNY digital platform. G&A expenses were basically flat at $9 million, 8% of net sales this year versus 16% last year.

研發成本下降了 3%，至 400 萬美元，占淨銷售額的 3%，而去年為 400 萬美元，占淨銷售額的 7%，這主要是由於 JRNY 數字平台相關維護費用的降低。 G&A 費用基本持平，為 900 萬美元，佔今年淨銷售額的 8%，而去年為 16%。

Adjusted operating income was $22 million, $35 million better than last year, driven primarily by increased gross profit and expense leverage. Adjusted income from continuing ops increased to $17 million or $0.56 per diluted share compared to last year's loss of $10 million or minus $0.33 per diluted share. Adjusted EBITDA from continuing ops improved by $35 million. We delivered $24.7 million of adjusted EBITDA this year compared to a loss of $10.5 million last year.

調整後營業收入為 2200 萬美元，比去年增加 3500 萬美元，這主要是由於毛利潤和費用槓桿增加所致。持續運營調整後的收入增至 1700 萬美元，即稀釋後每股收益 0.56 美元，而去年的虧損為 1000 萬美元，即稀釋後每股虧損 0.33 美元。持續運營帶來的調整後 EBITDA 提高了 3500 萬美元。今年我們實現了 2,470 萬美元的調整後 EBITDA，而去年則虧損 1,050 萬美元。

Turning now to Q2 2020 performance by segment. I'll be comparing this year's Q2 results with last year's Q2 results. Net sales in the Direct segment were $50 million, up 142%. After years of sales decline, this is the second consecutive quarter of sales growth for Direct. Higher sales were driven primarily by cardio, which grew 183%, driven by the Bowflex C6 and Schwinn IC4 bikes and our Max Trainer. Direct entered Q3 with $21 million in backlog compared to $8 million at the end of Q1 2020. Gross margin rate rose to 55% versus 43% last year, driven by favorable product mix, offset by higher landed product costs.

現在來看看 2020 年第二季度各細分市場的表現。我將把今年第二季度的結果與去年第二季度的結果進行比較。直接業務部門的淨銷售額為 5000 萬美元，增長 142%。經過多年的銷售額下滑後，這是 Direct 銷售額連續第二個季度實現增長。銷售額的增長主要是由有氧運動推動的，在 Bowflex C6 和 Schwinn IC4 自行車以及我們的 Max Trainer 的推動下，有氧運動增長了 183%。 Direct 進入第三季度時，積壓訂單為2100 萬美元，而2020 年第一季度末為800 萬美元。在有利的產品組合的推動下，毛利率從去年的43% 升至55%，但被到岸產品成本上升所抵消。

Gross profit was $28 million, $19 million higher than last year. Segment contribution was $17 million compared to a loss of $6 million last year. The improvement was driven by increased gross profit and a $4 million reduction in media spend.

毛利潤為 2800 萬美元，比去年增加 1900 萬美元。部門貢獻為 1700 萬美元，而去年則虧損 600 萬美元。這一改善是由毛利潤增加和媒體支出減少 400 萬美元推動的。

Turning now to retail segment results. Net sales were historic, $63 million, up 68%. Q2 '20 is this segment's second highest quarterly sales in history, second only to Q4 '19. Cardio sales were up 88%, driven by the Schwinn IC4 Bike and MAX Trainers. Strength product sales were up only 22%, limited by inventory scarcity of SelectTech weights and benches.

現在轉向零售部門的業績。淨銷售額創歷史新高，達 6300 萬美元，增長 68%。 20 年第二季度是該細分市場歷史上第二高的季度銷售額，僅次於 19 年第四季度。在 Schwinn IC4 自行車和 MAX 訓練器的推動下，有氧運動銷量增長了 88%。由於 SelectTech 舉重器械和訓練凳庫存稀缺，力量產品銷量僅增長 22%。

Importantly, if we exclude sales related to our commercial-focused Octane brand, Q2 2020 net sales for the retail segment grew 95% versus Q2 2019. Retail's backlog at the end of Q2 was $14 million compared to $6 million at the end of Q1. We disclosed retail customers whose sales are greater than 10% of total company net sales. This quarter, Amazon accounted for 18% of total company net sales.

重要的是，如果我們排除與以商業為中心的Octane 品牌相關的銷售額，2020 年第二季度零售領域的淨銷售額比2019 年第二季度增長了95%。第二季度末的零售積壓訂單為1,400 萬美元，而第一季度末為600 萬美元。我們披露了銷售額占公司總淨銷售額10%以上的零售客戶。本季度，亞馬遜占公司總淨銷售額的 18%。

Gross margin rate was 30%, up from 21% last year, driven by favorable sales mix, offset by higher landed product costs. Gross profit was $19 million, $11 million higher. And segment contribution was $12 million compared to breakeven last year, the improvement driven by higher gross profit.

受有利的銷售組合推動，毛利率為 30%，高於去年的 21%，但被到岸產品成本上升所抵消。毛利潤為 1900 萬美元，增加了 1100 萬美元。與去年的盈虧平衡相比，該部門的貢獻為 1200 萬美元，這是由於毛利潤提高所致。

Turning now to other Q2 highlights. We've grouped the assets and liabilities associated with Octane into current assets held for sale and current liabilities held for sale on the face of our balance sheet. Please see our press release and our website for more detail regarding this new presentation.

現在轉向第二季度的其他亮點。我們在資產負債表上將與 Octane 相關的資產和負債分為待售流動資產和待售流動負債。請參閱我們的新聞稿和我們的網站，了解有關此新演示的更多詳細信息。

Strong sales growth and great flow through to earnings resulted in a much stronger balance sheet at the end of the quarter. Cash was $48 million and debt was $15 million compared to cash of $11 million and debt of $14 million at year-end. We had $29 million available for borrowing on our Wells Fargo credit facility. AR was $34 million, 38% lower than $55 million at year-end. The decrease was due to the timing of customer payments and certain receivables included in the held-for-sale disposal group.

強勁的銷售增長和巨大的盈利流量導致季度末的資產負債表更加強勁。現金為 4800 萬美元，債務為 1500 萬美元，而年底現金為 1100 萬美元，債務為 1400 萬美元。我們有 2900 萬美元可通過富國銀行信貸額度借款。 AR 為 3400 萬美元，比年底的 5500 萬美元減少了 38%。減少的原因是客戶付款的時間以及持有待售處置組中包含的某些應收款。

Trade payables were $45 million, 39% lower than $74 million at year-end, primarily due to timing of inventory payments and reduced advertising-related payments. Capital expenditures were $5 million year-to-date. Inventory was $21 million compared to $55 million at year-end. The decrease is due in part to $12 million of inventory being reclassified into the held for sale disposal group and the surge in demand that began in mid-March.

應付賬款為 4500 萬美元，比年底的 7400 萬美元減少了 39%，這主要是由於庫存付款的時間安排和廣告相關付款的減少。今年迄今為止的資本支出為 500 萬美元。庫存為 2100 萬美元，而年底為 5500 萬美元。減少的部分原因是 1200 萬美元的庫存被重新分類到待售處置組，以及 3 月中旬開始的需求激增。

Our Q1 ending inventory would have been more in line with a seasonally normal Q2. Our team's ability to rev up our supply chain is what allowed us to meet the increased demand in the quarter. We accelerated factory output and decreased lead times from port to DC by fast-boating containers, cross-docking IC bites at the port and adding extra shifts at the DC to process volumes more in line with Q4 and versus Q2.

我們第一季度末的庫存將更符合第二季度的季節性正常情況。我們團隊加快供應鏈的能力使我們能夠滿足本季度不斷增長的需求。我們通過快船集裝箱、在港口交叉對接 IC 咬合以及在配送中心增加額外班次來加快工廠產量並縮短從港口到配送中心的交貨時間，以使處理量與第四季度和第二季度更加一致。

To secure factory capacity, we routinely issue noncancelable POs for expected inventory purchases in the next 12 months. These obligations are disclosed in our 10-Qs. At the end of Q2, we had about $128 million of noncancelable purchase obligations, compared to $20 million last year and $35 million at the end of Q1 2020.

為了確保工廠產能，我們通常會針對未來 12 個月內的預期庫存採購發出不可取消的採購訂單。這些義務在我們的 10-Q 中披露。截至第二季度末，我們有約 1.28 億美元的不可取消採購義務，而去年為 2000 萬美元，2020 年第一季度末為 3500 萬美元。

Turning now to our expectations for the rest of the year. We are operating in a highly volatile environment. And like other companies in our industry, we are trying to determine the magnitude and duration of the current at home fitness trend. Our perspective on the duration of this elevated consumer demand depends in part on how long gyms will be closed and/or capacity constrained and when customers will be more comfortable returning to their gyms.

現在談談我們對今年剩餘時間的期望。我們在一個高度不穩定的環境中運營。與我們行業的其他公司一樣，我們正在努力確定當前家庭健身趨勢的規模和持續時間。我們對這種消費者需求上升的持續時間的看法部分取決於健身房將關閉和/或容量限制的時間以及顧客何時會更放心地返回健身房。

Given this uncertainty, we're not providing specific guidance for the back half of the year. But we do want to give some color on trends that we're seeing and how they've affected our plans for the back half. First, we believe that in the near term, consumer demand will continue to be elevated relative to pre-COVID levels and that the new JRNY-connected products that we are launching in the fall will be met favorably. Our confidence is reflected in the significant increase in our inventory commitments.

鑑於這種不確定性，我們不會為今年下半年提供具體指導。但我們確實想對我們所看到的趨勢以及它們如何影響我們下半年的計劃提供一些信息。首先，我們相信，在短期內，消費者需求相對於新冠疫情之前的水平將繼續上升，並且我們在秋季推出的新 JRNY 連接產品將得到良好的滿足。我們的信心體現在我們的庫存承諾的大幅增加。

That said, constraints in our supply chain could limit our ability to fulfill all of the demand in the back half. And until a vaccine becomes widely available, we remain concerned about unforeseen disruptions to our supply chain. In Q2, COVID-19 restrictions affected sailing schedules and port working hours, creating uncertainty in our delivery schedules and making it more difficult to predict when customer orders could ship. We anticipate this difficulty to continue through the rest of 2020.

也就是說，我們供應鏈的限制可能會限制我們滿足後半段所有需求的能力。在疫苗廣泛使用之前，我們仍然擔心我們的供應鏈會出現不可預見的中斷。第二季度，COVID-19 限制影響了航行時間表和港口工作時間，給我們的交貨時間錶帶來了不確定性，並使預測客戶訂單何時可以發貨變得更加困難。我們預計這種困難將持續到 2020 年剩餘時間。

Second, given the imbalance in demand and supply, we expect continued cost pressure in logistics versus last year, which puts pressure on our gross margins. Ocean shipping providers continue to constrain supply and rates have been rising. And our logistics partners in the U.S. have already told that the shipping capacity will be severely constrained in the upcoming holiday season. We expect to incur increased costs to secure delivery slots for our goods.

其次，鑑於供需失衡，我們預計物流成本壓力與去年相比將持續存在，這將對我們的毛利率造成壓力。海運供應商繼續限制供應，費率一直在上升。我們在美國的物流合作夥伴已經告訴我們，在即將到來的假期期間，運輸能力將受到嚴重限制。我們預計會增加成本來確保我們的貨物的交貨時間。

Third, with regard to operating expenses. We plan on spending more on marketing in the back half in support of our new product launches. So we're not expecting the same level of year-over-year expense leverage that we saw in Q2. Finally, we are reiterating our full year capital guidance range of $8 million to $10 million.

第三，關於營業費用。我們計劃在下半年投入更多營銷費用，以支持我們的新產品發布。因此，我們預計費用槓桿率不會達到第二季度的水平。最後，我們重申全年資本指導範圍為 800 萬美元至 1000 萬美元。

In summary, we are pleased with the sales momentum in the business and how our team has responded to the surge in demand for at-home fitness. We're proud to have delivered another quarter with strong results. But as Jim has mentioned, we are still in the early stages of our transformation and anticipate that the way forward will always be smooth.

總之，我們對業務的銷售勢頭以及我們的團隊如何應對家庭健身需求的激增感到滿意。我們很自豪又一個季度取得了強勁的業績。但正如吉姆所提到的，我們仍處於轉型的早期階段，並預計前進的道路將永遠順利。

We continue to balance delivering improved short-term results with making the structural changes required to return Nautilus to sustainable, profitable growth. I look forward to sharing our progress with you next quarter.

我們繼續在改善短期業績與進行結構性變革之間取得平衡，以使鸚鵡螺恢復可持續的盈利增長。我期待著下個季度與您分享我們的進展。

Now I'd like to turn the call back over to Jim for his final comments. Jim?

現在我想將電話轉回吉姆以徵求他的最終意見。吉姆？

Thank you, Aina. We're certainly pleased with the superior results in the quarter and improvements we are making in our business. However, we must remind ourselves that some of the underlying challenges in our business remain, and the operating landscape is highly uncertain due to COVID-19.

謝謝你，艾娜。我們當然對本季度的優異業績以及我們在業務方面取得的進步感到滿意。然而，我們必須提醒自己，我們業務中的一些潛在挑戰仍然存在，並且由於 COVID-19，運營環境高度不確定。

While we were delivering historical Q2 financial results, our management team was also dedicating significant time and energy on our transformative long-term strategy work. As you can see from our recent announcement to explore the sale of the Octane Fitness, we are making important strategic changes to our business. However, it's important to remember that transforming a company doesn't happen overnight. And even though we're making strong recent progress, that this will be a long process, and there may not always be quarter-to-quarter linear progress.

在我們交付歷史性的第二季度財務業績的同時，我們的管理團隊也將大量時間和精力投入到我們變革性的長期戰略工作上。從我們最近宣佈出售 Octane Fitness 的公告中可以看出，我們正在對我們的業務進行重要的戰略調整。然而，重要的是要記住，公司的轉型不是一朝一夕就能完成的。儘管我們最近取得了強勁的進展，但這將是一個漫長的過程，而且可能並不總是季度與季度之間的線性進展。

As a proof point to our continued focus and our long term priorities, we are poised to launch an innovative and exciting lineup of 2020 new personalized connected fitness products and services. You will see more details on all of these in the coming weeks as we roll them out, but I'm delighted to give you a quick overview so that you get a sense of where we're going.

作為我們持續關注和長期優先事項的證明，我們準備推出一系列創新且令人興奮的 2020 年全新個性化互聯健身產品和服務。在接下來的幾週內，當我們推出這些內容時，您將看到有關所有這些內容的更多詳細信息，但我很高興為您提供快速概述，以便您了解我們的發展方向。

We have seen a surge in demand for strength products, and we have already added to our strength category with the launch of the Bowflex SelectTech 2080 Barbell and Curl Bar set and new benches. Our customers cannot get enough of many of our strength products, including SelectTech. The 2080 is sold out in less than 24 hours on bowflex.com, and we're working hard to get them back in stock.

我們看到對力量產品的需求激增，並且通過推出 Bowflex SelectTech 2080 槓鈴和彎舉桿套裝以及新的長凳，我們已經將力量產品添加到了我們的力量類別中。我們的客戶對我們的許多優勢產品（包括 SelectTech）都無法滿足。 2080 在 Bowflex.com 上不到 24 小時就被搶購一空，我們正在努力恢復庫存。

Nautilus is on a quest to become a more digital company where physical equipment, content and software come together to deliver an experience that could not have been imagined several years ago. As such, we will launch an improved experience on JRNY, our personalized connected fitness digital platform. JRNY will feature an updated user interface, new content, including a more robust library of on-demand streaming workouts and integration of Explore the World and Apple Health.

Nautilus 致力於成為一家更加數字化的公司，將物理設備、內容和軟件結合在一起，提供幾年前無法想像的體驗。因此，我們將在個性化互聯健身數字平台 JRNY 上推出改進的體驗。 JRNY 將採用更新的用戶界面和新內容，包括更強大的點播流媒體鍛煉庫以及“探索世界”和 Apple Health 的集成。

Most importantly, we have integrated it into more products so that the JRNY experience is available on more modalities and to more customers. Often, the first piece of equipment bought for home fitness is a treadmill. It's mostly easily understood modality. Thus, we are super excited to launch 3 new connected fitness treads with different sized screens and loaded with JRNY.

最重要的是，我們已將其集成到更多產品中，以便更多的客戶可以通過更多方式獲得 JRNY 體驗。通常，家庭健身購買的第一件設備是跑步機。它主要是容易理解的形式。因此，我們非常高興能夠推出 3 種新的聯網健身踏板，它們具有不同尺寸的屏幕並裝有 JRNY。

Wait, there's more. The Max Trainer is a modality we invented, a unique and patented combination of an elliptical and stepper that gives you an excellent workout in as little as 14 minutes a day, and takes up half the space in your home that a tread does. It is one of our all-time best sellers, having sold hundreds of thousands of units. The sales declines the company suffered in the last few years were in part driven by the transition of the Max from high-volume hero product, to low volume later in its life cycle.

等等，還有更多。 Max Trainer 是我們發明的一種模式，它是橢圓機和踏步機的獨特且獲得專利的組合，每天只需 14 分鐘即可讓您進行出色的鍛煉，並且佔用的家中空間只有踏板機的一半。它是我們有史以來最暢銷的產品之一，已售出數十萬件。該公司過去幾年銷量下降的部分原因是 Max 在其生命週期後期從高銷量英雄產品轉向低銷量。

We believe this product -- we believe in this product, and we're betting that an immersive digital experience delivered via JRNY will modernize and make the Max even better. So we're launching 2 rejuvenated Max Trainers with screens and JRNY embedded.

我們相信這款產品——我們相信這款產品，並且我們相信通過 JRNY 提供的沉浸式數字體驗將實現現代化並使 Max 變得更好。因此，我們推出了 2 款重新煥發活力的 Max Trainer，配有屏幕和嵌入 JRNY。

Finally, we've seen tremendous demand for our bikes. We launched the first Bowflex bike, the C6, and the first Schwinn connected bike, the IC4, late last year. Both bikes were instant resounding hits, pre and post-COVID. Therefore, we're launching 3 new bikes with embedded screens and JRNY, including some that will deliver a very special differentiating surprise that I wish I could show you now, but I don't want to steal the thunder of our launch activities. These new products will be added to our already robust product portfolio. We relate to connected fitness, but have taken another important step in 2020 with these launches.

最後，我們看到了對自行車的巨大需求。去年年底，我們推出了第一款 Bowflex 自行車 C6 和第一款 Schwinn 聯網自行車 IC4。無論是在新冠疫情之前還是之後，這兩款自行車都立即引起了轟動。因此，我們將推出 3 款帶有嵌入式屏幕和 JRNY 的新自行車，其中一些將帶來非常特別的差異化驚喜，我希望現在就可以向您展示，但我不想搶了我們發布活動的風頭。這些新產品將添加到我們已經強大的產品組合中。我們與互聯健身相關，但在 2020 年又通過這些發布邁出了重要的一步。

In just 2 years, we will have increased the mix of units which offer connected fitness from single digits to a strong majority of our portfolio. This gives our customers the best possible modern at-home fitness experience, gives us greater ability to deliver on our mission to help people live healthier lives through fitness and fuels our growing membership business model. I'm tremendously excited to see these products hit the market, especially in the midst of the at-home fitness trend.

在短短兩年內，我們將把提供互聯健身的單位組合從個位數增加到我們產品組合的絕大多數。這為我們的客戶提供了最佳的現代家庭健身體驗，使我們更有能力履行我們的使命，幫助人們通過健身過上更健康的生活，並推動我們不斷發展的會員業務模式。我非常高興看到這些產品進入市場，尤其是在家庭健身趨勢之中。

I have just a few more comments before I end my prepared remarks. Last week marked my 1-year anniversary with Nautilus, and I found myself taking stock at what's been a truly remarkable year for our company. When I joined, the company was in the middle of a difficult year. We had missed some important market trends. We're suffering from incompletely and undiagnosed problems and unconstrained -- and constrained resources and we were delivering poor financial results. I knew we were in for a multiyear turnaround, but I was excited and energized that the company had most of the important ingredients it needed to return to its leadership position in the fitness industry.

在結束我準備好的發言之前，我還有一些評論。上周是我加入 Nautilus 一周年紀念日，我發現自己對我們公司真正非凡的一年進行了盤點。當我加入時，公司正處於困難的一年中。我們錯過了一些重要的市場趨勢。我們面臨著不完全和未診斷的問題以及不受約束和有限的資源，我們的財務業績很差。我知道我們將經歷多年的轉變，但我感到興奮和充滿活力，因為該公司擁有重返健身行業領導地位所需的大部分重要要素。

One year later, I believe this more than ever. 2019 was a year to forget. With the company continuing a multiyear sales decline, losing over 20% of its revenue base that resulted in an operating loss of $100 million. We had cut 13% of our workforce to survive, and we had lost our confidence. But our people were resilient, gaining experience at managing through crisis and remained passionate about our noble mission.

一年後，我比以往任何時候都更加相信這一點。 2019 年是令人難忘的一年。隨著公司銷售額連續多年下滑，收入基礎損失超過 20%，導致營業虧損達 1 億美元。為了生存，我們裁掉了 13% 的員工，我們也失去了信心。但我們的人民堅韌不拔，積累了應對危機的經驗，並對我們的崇高使命保持熱情。

Q4 2019 ended with a moderate change in trajectory and some reason for optimism. We relaunched JRNY and added connected fitness bikes, treads and the Max Total to our portfolio. The bikes gained immediate traction due to their quality and value proposition. We diagnosed the root causes of the biggest problems and put early actions against them, which continue today. We secured new financing and hired new leaders in marketing and finance. We also made some bold revisions to our 2020 product lineup.

2019 年第四季度結束時，軌跡發生了適度變化，也有一些樂觀的理由。我們重新推出了 JRNY，並將聯網健身自行車、踏板和 Max Total 添加到我們的產品組合中。這些自行車因其質量和價值主張立即受到關注。我們診斷了最大問題的根本原因，並及早採取行動應對這些問題，這些行動一直持續到今天。我們獲得了新的融資，並聘請了營銷和財務方面的新領導者。我們還對 2020 年的產品陣容進行了一些大膽的修改。

Although we limped out of 2019, we entered with renewed optimism Q1 '20 produced our first top line growth quarter since 2018. The connected fitness bikes continue to sell without the typical seasonal drop off. We felt COVID-19's effect first as a supply chain disruptor in China, losing several weeks of production on our new bikes. Then, when COVID-19 began to affect the rest of the world and demand at at-home fitness skyrocketed, demand for our quality products turned an already good quarter into a great one. We saw a rush to our quality products and well-known brands. We sold through almost everything in our DCs in the last 2 weeks of March, and our supply chain team went to work to accelerate our pipeline.

儘管我們一瘸一拐地走出了2019 年，但我們以新的樂觀態度進入了20 年第一季度，這是我們自2018 年以來的第一個營收增長季度。聯網健身自行車繼續銷售，沒有出現典型的季節性下降。我們首先感受到了 COVID-19 的影響，因為它擾亂了中國的供應鏈，導致我們的新自行車損失了數週的生產。然後，當 COVID-19 開始影響世界其他地區並且家庭健身需求猛增時，對我們優質產品的需求將本已良好的季度變成了一個偉大的季度。我們看到人們對我們的優質產品和知名品牌的熱潮。在 3 月份的最後兩週內，我們售完了配送中心的幾乎所有商品，我們的供應鏈團隊開始努力加快我們的渠道建設。

In Q2 2020, we produced historic financial results, fueled by the at-home fitness tailwind for a full order, broad growth across both segments and in our consumer-focused brands and products, and witnessed the team's excellent response and execution. We changed our whole working model shifting to working from home. The team faced many challenges in its new normal.

2020 年第二季度，在家庭健身訂單充足的推動下，我們取得了歷史性的財務業績，兩個細分市場以及以消費者為中心的品牌和產品都實現了廣泛增長，並見證了團隊的出色反應和執行力。我們改變了整個工作模式，轉向在家工作。該團隊在新常態下面臨許多挑戰。

While we were managing a sales volume nearly double last year's, we also worked on our long-term transformational growth plan, including important focusing decisions like the difficult one to sell Octane. We are optimistic about our 2020 new products and our improved cash and liquidity position, which gives us greater capabilities and expanded options. I'm proud of our progress, but I'm constantly reminded that we have more work to do on our path to sustainable profitable growth.

雖然我們的銷量幾乎是去年的兩倍，但我們還制定了長期轉型增長計劃，包括重要的重點決策，例如難以銷售辛烷的決策。我們對 2020 年的新產品以及現金和流動性狀況的改善感到樂觀，這為我們提供了更強的能力和更多的選擇。我為我們的進步感到自豪，但我不斷提醒自己，在實現可持續盈利增長的道路上，我們還有更多工作要做。

As I said at the top of the call, a portion of our results in the quarter were driven by COVID-19 tailwinds. However, the team's execution allowed us to meaningfully increase supply chain output, capture new customers, expand product margins, all while maintaining our cost discipline. And for that, I'm incredibly proud to be part of this company and to be teammates of such dedicated individuals.

正如我在電話會議開頭所說，我們本季度的部分業績是由 COVID-19 的推動推動的。然而，團隊的執行力使我們能夠有意義地增加供應鏈產出、吸引新客戶、擴大產品利潤，同時保持我們的成本紀律。為此，我非常自豪能夠成為這家公司的一員並成為這些敬業的個人的隊友。

I want to again thank our employees and partners who stand committed to our mission even during these difficult times, and I'm excited to begin my year 2.

我想再次感謝我們的員工和合作夥伴，即使在這些困難時期，他們仍然致力於我們的使命，我很高興開始我的第二年。

And now I'd like to open the call up to your questions. Operator?

現在我想在電話會議上回答大家的問題。操作員？

(Operator Instructions) The first question is from Steven Dyer, Craig-Hallum.

（操作員說明）第一個問題來自 Craig-Hallum 的 Steven Dyer。

Congratulations on the terrific results.

祝賀取得了出色的成果。

Thanks, Steve.

謝謝，史蒂夫。

Just, I guess, as you look at sort of revenue or capacity in the near term, I know you don't -- didn't give guidance, but I mean, is it reasonable to think kind of Q2 is best case scenario? I mean you started with a backlog, ended with a backlog. Didn't start with much inventory, didn't end with much inventory.

只是，我想，當你考慮近期的收入或產能時，我知道你沒有——沒有給出指導，但我的意思是，認為第二季度是最好的情況是否合理？我的意思是，你從積壓的工作開始，以積壓的工作結束。開始時庫存不多，結束時庫存也不多。

I mean you were clearly going sort of full out. Is it reasonable to think that's kind of a best case scenario right now? Or are there puts and takes there we should consider?

我的意思是你顯然已經全力以赴了。現在認為這是最好的情況是否合理？或者我們應該考慮哪些看跌期權和賣出期權？

Yes, I'll start, and then I'll ask Aina to jump in. So it's a great question, Steve. And of course, we're trying to figure this out. As we talked about last quarter, you've got 2 things going on at the same time. You've got demand that continues to be extremely high, and then you have a response in supply. Our demand -- our view of demand is it will continue, as I said in my comments.

是的，我會開始，然後我會請艾娜插話。所以這是一個很好的問題，史蒂夫。當然，我們正在努力解決這個問題。正如我們上季度談到的，有兩件事同時發生。需求仍然非常高，然後供應就會做出反應。正如我在評論中所說，我們的需求 - 我們對需求的看法是它將繼續下去。

Supply side, it has a lot to do with how well we match supply and demand, how well we anticipate these types of things. We're -- I will also say, on supply, we're learning and growing. I would have never thought that we could increase our bike capacity by 500% within one quarter. I just didn't know that was a capability. And so I'm learning what we're capable of. And we're still looking at that as we continue moving forward.

供應方面，這與我們對供需的匹配程度以及我們對此類事情的預測程度有很大關係。我還要說，在供應方面，我們正在學習和成長。我從來沒有想到我們可以在一個季度內將自行車容量增加 500%。我只是不知道這是一種能力。所以我正在了解我們的能力。在我們繼續前進的過程中，我們仍在關注這一點。

I will tell you that one thing you can look at is -- is our commitment -- and our balance sheet commitment of $128 million because that gives some view to where we think things are going. But every day, this changes, both the supply and the demand side and our ability to match those things. And it's pretty tricky, as you might imagine, to get it absolutely right. We've definitely already kind of made our bets for Q3, and we're pretty locked and loaded on while -- our ability to deliver in that particular one.

我會告訴你，你可以關注的一件事是——我們的承諾——以及我們1.28億美元的資產負債表承諾，因為這讓我們對事情的進展有了一些了解。但每天，供應和需求方面以及我們匹配這些東西的能力都會發生變化。正如您可能想像的那樣，要使其完全正確是非常棘手的。我們肯定已經為第三季度下了賭注，並且我們已經鎖定並加載了我們在該特定季度交付的能力。

But Q4, by the end of Q3, what will we have done in terms of increasing our capacity even further? We'll bring on some second suppliers and things like that during this quarter, and we'll continue to increase that capacity. Obviously, first thing you do is with your existing suppliers, you add new lines. And you get that to happen, and they have to invest with you to get those new lines. And then if that's not even enough, then you have to go to second suppliers to actually implement and add to that. So -- augment that.

但是第四季度，到第三季度末，我們在進一步提高產能方面將採取哪些措施？我們將在本季度引入一些第二供應商和類似的東西，並且我們將繼續增加產能。顯然，您要做的第一件事就是與現有供應商合作，添加新的生產線。如果你要實現這一點，他們就必須與你一起投資以獲得這些新線路。如果這還不夠，那麼您必須去找第二個供應商來實際實施和補充。所以——增強這一點。

So there's so many -- it's hard to tell, but we're pretty optimistic.

所以有很多——很難說，但我們非常樂觀。

The only thing I'd add to that is, you said it correctly, when you first looked at it, if you're coming in with low inventory, it may seem difficult to ramp up, but we showed in Q2 that we have the capability to do that. We are very focused on expanding our supply chain. And doing what we call through the noncancelable POs of reserving spots on those existing lines and then continuing to expand them. Hopefully, that's helpful.

我唯一要補充的是，你說得對，當你第一次看到它時，如果你的庫存很低，那麼似乎很難增加，但我們在第二季度表明我們有有能力做到這一點。我們非常注重擴大我們的供應鏈。通過在這些現有線路上保留不可取消的 PO 來進行我們所說的操作，然後繼續擴展它們。希望這有幫助。

Yes, very helpful. And you raised the price on some of your products during the quarter, particularly the bikes, and really kind of a couple of questions around that.

是的，非常有幫助。您在本季度提高了某些產品的價格，特別是自行車，並且確實有一些圍繞此的問題。

One is, did you see any elasticity around that or any sort of noticeable difference after you did that? Or was the demand crush just so much? And then, secondly, not just the bikes, but overall, I mean, do you have a sense as to what kind of cancellation rates you're seeing that you're leaving on the table as you ramp?

一是，在你這樣做之後，你是否看到了任何彈性或任何明顯的差異？或者需求壓垮就這麼嚴重嗎？其次，不僅僅是自行車，而是總體而言，我的意思是，您是否知道在升級過程中您會看到什麼樣的取消率？

Sure. I'll start again, and I'll ask Aina to augment anything she has going. But no, we didn't see any noticeable difference. And we didn't think we would. We had tried a cost -- a price increase on the C6 in the first quarter, if you'll recall, and that was pre-pandemic. And we didn't see any drop, be it seasonal or otherwise in that particular demand. And that gave us -- even before COVID hit, we had a pretty good idea that we might look at, can we raise this a little bit more? It's still such a fantastic value proposition relative to many of the competitors out there. And with an open platform and all that sort of thing, that it really worked well.

當然。我會重新開始，我會要求艾娜增強她所做的一切。但不，我們沒有看到任何明顯的差異。我們並不認為我們會這麼做。如果你還記得的話，我們曾在第一季度嘗試過成本上漲——C6 的價格上漲，那是在大流行之前。我們沒有看到該特定需求有任何下降，無論是季節性還是其他原因。這給了我們——甚至在新冠疫情爆發之前，我們就有了一個很好的想法，我們可以考慮一下，我們可以再提出一點嗎？相對於許多競爭對手來說，它仍然是一個非常棒的價值主張。有了開放平台和諸如此類的東西，它確實運作良好。

So we felt that, that would work. And we also felt the same thing about the SelectTech 552s. I mean those things were kind of the new toilet paper. And people -- we couldn't keep them in stock. So raising that a little bit, we weren't price gouging in any way. We just thought, hey, these things are in high demand and we've got a little room there. So we raised both of those, and we saw no decrease in demand.

所以我們覺得這會起作用。我們對 SelectTech 552 也有同樣的感覺。我的意思是這些東西是一種新的衛生紙。還有人——我們無法保留他們的庫存。因此，稍微提高一點，我們並沒有以任何方式哄抬價格。我們只是想，嘿，這些東西的需求量很大，而我們那裡有一點空間。所以我們提高了這兩項，但我們沒有看到需求減少。

In terms of cancellations, I think it's kind of a function of how long you make people wait. I think given other alternatives in the market, they're willing to wait quite a while. Some of our competitors are out 10, 12, 15 weeks, things like that. So they're willing to wait. They're actually quite happy to be at a spot in the list and have you committed to fulfilling that need. Occasionally, you'll get a cancellation.

就取消而言，我認為這與人們等待的時間有關。我認為考慮到市場上有其他選擇，他們願意等待很長一段時間。我們的一些競爭對手會缺席 10、12、15 週之類的時間。所以他們願意等待。他們實際上很高興能在列表中佔據一席之地，並讓您致力於滿足這一需求。有時，您會收到取消通知。

For example, if we had some IC4s that we had gotten orders from our Direct division from schwinnfitness.com. And then all of a sudden, Amazon goes back in stock on those items, people will buy them immediately from Amazon, and they'll cancel ours. So you do see some cancellations. And we won't likely fulfill the $34 million of back orders, dollar for dollar, but a lot of it sticks around because our products are good, our brands are there and people are willing to wait for them.

例如，如果我們有一些 IC4，我們就從 schwinnfitness.com 的直接部門獲得訂單。然後突然間，亞馬遜恢復了這些商品的庫存，人們會立即從亞馬遜購買它們，然後他們會取消我們的商品。所以你確實會看到一些取消。我們不太可能一美元一美元地履行 3400 萬美元的延期交貨訂單，但其中很多訂單仍然存在，因為我們的產品很好，我們的品牌在那裡，而且人們願意等待它們。

Anything you'd like to add?

您還有什麼要補充的嗎？

No, I think you covered it, Jim.

不，我想你已經報導過了，吉姆。

Great. And then last one for me, and then I'll pass it along. You talked about -- you talked about all the great new products. There's a ton coming, and you talked about sort of throwing some marketing dollars behind that, which I get.

偉大的。最後一份給我，然後我會把它傳遞出去。你談到了所有偉大的新產品。將會有大量的內容出現，你談到了在這背後投入一些營銷資金，我明白了。

Any willingness to sort of quantify that at all? And then maybe how we should think about the split between Q3 and Q4?

是否願意對此進行量化？那麼也許我們應該如何考慮第三季度和第四季度之間的劃分？

I'll just tell you how I think about it and then Aina can answer the numeric question as far as she feels comfortable doing it.

我會告訴你我的想法，然後艾娜可以在她覺得舒服的範圍內回答數字問題。

As we were -- as we didn't need to spend as much on marketing, even in the first quarter and definitely in second quarter, I think if you asked our CMO, are you -- are you permanently saving it? Or are you putting it in a piggy bank for product launches, she would say the latter, and it's probably some combination of the 2.

因為我們不需要在營銷上花費那麼多，即使是在第一季度，肯定是在第二季度，我想如果你問我們的首席營銷官，你會永久保存它嗎？或者你把它放在存錢罐裡用於產品發布，她會說後者，而且可能是兩者的某種組合。

I mean we think we've got some great products that get out there in the marketplace. We've -- we thought through producing some, what I think are some really good commercials. That wasn't easy, by the way, to do casting remotely and to go to California and film some commercials just before California closes again and then shift to the New York area as well on top of that. It was one of those logistic things we fought against.

我的意思是，我們認為我們已經在市場上推出了一些很棒的產品。我們已經考慮過製作一些我認為是一些非常好的廣告。順便說一句，遠程選角並在加州再次關閉之前前往加州拍攝一些廣告，然後再轉移到紐約地區，這並不容易。這是我們反對的後勤問題之一。

But the way -- the way I think about it, we definitely want to keep that money in the piggy bank because we -- it will be just as it has been. If we don't need to spend a ton of it to sell everything we have, well, then we won't spend it. But if we can really go big, especially on some new products and get them out there -- and by the way, there's also brand building, too. I mean that's something in our long-term strategy that we really believe we haven't done enough of. We've done -- we've only been able to afford for the last couple of years enough advertising to basically drive transactions and not get our brands to the very best place it could be. So we want to spend a little bit of money on that, too.

但我的想法是，我們肯定想把這筆錢存入存錢罐，因為我們的情況會像以前一樣。如果我們不需要花很多錢來賣掉我們擁有的一切，那麼我們就不會花它。但如果我們真的能做大，特別是在一些新產品上並將它們推向市場——順便說一句，還有品牌建設。我的意思是，在我們的長期戰略中，我們確實認為我們做得還不夠。我們已經做到了——在過去的幾年裡，我們只能負擔足夠的廣告費用來基本上推動交易，而無法讓我們的品牌達到應有的最佳水平。所以我們也想在這方面花一點錢。

I know it's kind of a nonanswer because you were looking for a dollar, but that's just really the framework we have, which is probably the best way we can answer any question in these types of situations. Aina, do you have anything to add?

我知道這有點無解，因為你正在尋找一美元，但這確實是我們擁有的框架，這可能是我們在此類情況下回答任何問題的最佳方式。艾娜，你還有什麼要補充的嗎？

The one thing I'd add is -- I'd remind everybody that our focus on being really more efficient and effective in our marketing spend started happening in Q4 last year. So when you're looking at year-over-year compares, just be mindful that the improvements in our efficiency already began in Q4 '19.

我要補充的一件事是——我想提醒大家，我們從去年第四季度開始專注於提高營銷支出的效率和效果。因此，當您查看同比比較時，請注意我們的效率改進已於 19 年第四季度開始。

So just something to think about on top of the product launches that we're going to plan to put marketing behind.

因此，除了產品發布之外，我們還要考慮一些我們計劃將營銷放在後面的事情。

The next question is from Mike Swartz, Truist Securities.

下一個問題來自 Truist Securities 的 Mike Swartz。

Just first question, maybe provide a little context or perspective -- I think on the last call, you've had expected your backlog to go into, I think, early to mid-third quarter. So I just wanted to take a step back and look at the backlog where it is today. Is that something you can satisfy during the calendar year?

只是第一個問題，也許提供一些背景或觀點 - 我認為在上次電話會議中，您預計您的積壓工作將進入，我認為，第三季度初至中期。所以我只是想退一步看看今天的積壓情況。這是您在這一年中可以滿足的事情嗎？

And then related to that, just on the purchase obligations, maybe for Aina, is what percentage of your sales in the back half do you typically have that kind of line of sight into at this point in the year?

與此相關的是，就購買義務而言，也許對於艾娜來說，在今年的這個時候，您通常會在下半年的銷售額中佔多少百分比？

So I'll start with the backlog question and then we'll have Aina go to the purchase obligations.

因此，我將從積壓問題開始，然後我們將讓艾娜履行採購義務。

So for the backlog, look, we -- last time we spoke, COVID was still kind of unwinding. Like we were just starting to develop. I think, at first, we thought, hey, this might be a couple of weeks. And I mean we in the collective sense of the world, thought it would be a couple of weeks. And then we thought maybe it would be a month, and then maybe we thought it would be a couple of months.

因此，對於積壓的工作，我們——上次我們講話時，新冠疫情仍然處於緩解狀態。就像我們剛剛開始發展一樣。我想，一開始我們想，嘿，這可能需要幾週的時間。我的意思是，從世界的集體意義上來說，我們認為這需要幾週的時間。然後我們想也許會是一個月，然後也許我們認為會是幾個月。

So when we made those statements in early May that we would perhaps catch up in the third quarter, we just didn't see this continued elevation of demand. And so if you have demand kind of running away from you and in your supply side, you haven't pushed all the levers yet to increase the supply and the output of the supply chain yet because you weren't quite sure how long it was going to last, then you suddenly realize, hey, it's going to be longer. And that was after our last call.

因此，當我們在五月初發表聲明稱我們可能會在第三季度迎頭趕上時，我們只是沒有看到需求持續上升。因此，如果您的供應方面的需求有點偏離您，那麼您還沒有使用所有槓桿來增加供應鏈的供應和產出，因為您不太確定供應鏈持續了多長時間持續下去，然後你突然意識到，嘿，它會更長。那是在我們上次通話之後。

So what we try to do on these calls is give you the best information we have, how we're making decisions at the time. But I'd say within a few weeks of that call, we knew this is going to be a longer-term catch up mode on inventory. And then, Aina, do you want to cover the purchase obligations?

因此，我們在這些電話中試圖做的就是向您提供我們所掌握的最佳信息，以及我們當時如何做出決策的信息。但我想說的是，在接到電話後的幾週內，我們就知道這將是庫存的長期追趕模式。那麼，艾娜，你想承擔購買義務嗎？

I want to add to the backlog question. I want to just make sure that it's not the same population of backlogs that were there earlier in the year because we are fulfilling them. But as demand continues to be high and the promise periods are longer, it's almost just if you think of like something that slides along as the time progresses, I want to make sure I call that out.

我想補充一下積壓問題。我想確保這不是今年早些時候的積壓訂單，因為我們正在履行它們。但隨著需求持續高漲，承諾期更長，如果你想到的東西會隨著時間的推移而滑動，我想確保我指出了這一點。

And then, second, when you think about the POs that we've issued, what we wanted to do because, although we're not certain how long the high level of demands will continue, we are seeing that they're going to continue for the near term. So we want to reserve as much capacity as we can. So I don't want you to think that all of this 100-plus million of POS are necessarily for just only Q3.

然後，第二，當你想到我們已經發布的採購訂單時，我們想要做什麼，因為雖然我們不確定高水平的需求會持續多久，但我們看到它們會繼續下去短期內。因此，我們希望保留盡可能多的容量。因此，我不希望您認為所有這 1 億多 POS 都一定只用於第三季度。

So we're just reserving as far as we can see in the factories that we work with to make sure we don't run into a constraint. So that's, hopefully, will be helpful to you when you're thinking about inventory POs.

因此，我們只是在與我們合作的工廠中盡可能保留，以確保我們不會遇到限制。因此，希望這對您考慮庫存採購訂單時有所幫助。

No. No. That's great. And then, Jim, maybe a question on marketing. I know this is kind of an extraordinary environment we're in today and you haven't had to spend as much as maybe you would have in a typical year to stimulate demand. But can you talk about maybe some of the underlying tools you're putting in place as far as customer attribution and maybe path to purchase. And any early learnings from that?

不，不，那太好了。然後，吉姆，也許是關於營銷的問題。我知道我們今天所處的環境非同尋常，您不必像平常年份那樣花費大量資金來刺激需求。但您能否談談您在客戶歸因和購買路徑方面正在實施的一些基礎工具。從中可以學到什麼早期經驗嗎？

Sure. It's a great question because at some point, gravity comes back, right? I mean it's -- we've -- this moment where our cost of customer acquisition has dropped so precipitously, that's not going to persist for years, and years, and years. So we know we're going back. So your questions are really in the right spot.

當然。這是一個很好的問題，因為在某個時刻，重力會回來，對吧？我的意思是，我們的客戶獲取成本在此時此刻急劇下降，這種情況不會持續很多年、很多年、很多年。所以我們知道我們要回去了。所以你的問題確實是在正確的地方。

And that's really probably the main thing I talk about when I say we still have these underlying issues that we're working on. Aina was great to point out that kind of beginning the fourth quarter of last year, we really focused on ROI. And we just look at our product portfolio and the hand that we have, and we're smart about how we're -- how much money we're going to spend.

當我說我們仍然面臨著我們正在解決的這些根本問題時，這確實可能是我談論的主要內容。艾娜很高興地指出，從去年第四季度開始，我們真正關注的是投資回報率。我們只關注我們的產品組合和我們現有的資金，我們很聰明地知道我們要花多少錢。

The second thing is how -- what vehicles do you spend the money on? We were 2/3's TV, 1/3 digital for 5 years in a row and every year got worse than the other. I think I've called that the definition of media buying insanity.

第二件事是如何——你把錢花在什麼車輛上？我們連續 5 年都是 2/3 的電視，1/3 的數字電視，而且每年都變得更糟。我想我把這稱為媒體購買瘋狂的定義。

So we kept doing that and doing that. Of course, you say, just do something different there. So we started to do something different in the fourth quarter and the first quarter. Then beginning in the second quarter, we have a new media buying agency. They are quite a bit more digital than the last one. They come -- what comes with it is attribution tools. You're right on it there.

所以我們一直這樣做，一直這樣做。當然，你說，就在那裡做點不同的事情吧。所以我們在第四季度和第一季度開始做一些不同的事情。然後從第二季度開始，我們有了一個新的媒體購買機構。它們比上一個更加數字化。他們來了——隨之而來的是歸因工具。你說得對。

Even when things went wrong, we didn't know what part of our spending went wrong. It's the old advertising adage that half of your advertising is wasted, you just don't know which half. We started to get a better idea of that. And so working with this new agency with their own tools, proprietary tools that help us attribute to TV into the various digital marketing things. We at least know where -- what's working and what isn't. And we do more of what's working and less of what isn't.

即使出現問題，我們也不知道哪一部分支出出了問題。有句古老的廣告格言說，一半的廣告被浪費了，只是你不知道是哪一半。我們開始對此有了更好的認識。因此，與這個新機構合作，使用他們自己的工具，專有工具，幫助我們將電視融入各種數字營銷事物中。我們至少知道哪裡有效，什麼無效。我們多做有效的事情，少做無效的事情。

Then as we moved into the strategic planning process, we did some great new consumer research. We have, and we'll share with you when we talk about the strategy, we have new market segments. We kind of just did a demographic in an age group segmentation. Now we've done behavioral segmentation, and that's super important to our industry. So we're getting a much -- we're getting to know our customers, our different types of customers, a lot better than we had before. And then we've done this path to purchase that you mentioned as well. And we're learning things like most of the time people choose a modality before they choose anything else. So you have to take them on your website and other places, from that to the exact right thing that's right for them.

然後，當我們進入戰略規劃流程時，我們做了一些很棒的新消費者研究。我們有，並且當我們談論戰略時我們會與您分享，我們有新的細分市場。我們只是按年齡組細分進行了人口統計。現在我們已經完成了行為細分，這對我們的行業非常重要。因此，我們比以前更好地了解了我們的客戶，不同類型的客戶。然後我們也完成了您提到的購買路徑。我們正在學習這樣的事情：大多數時候人們會先選擇一種方式，然後再選擇其他任何東西。所以你必須把他們帶到你的網站和其他地方，從那裡到最適合他們的正確的東西。

We definitely learned that purchasing products in our -- and we knew this already, but it's a very complex decision for people to purchase fitness equipment and spend the money that they do. So we've -- we on our website are getting better at making that decision a little bit easier, making the decision clearer to them, doing the right kinds of comparisons and things like that. And that's really just the tip of the iceberg. That's really what I collectively say, look, we haven't solved everything yet. Right now, we have an amazing media efficiency ROI and a low-cost of customer acquisition.

我們確實了解到，購買我們的產品——我們已經知道這一點，但對於人們購買健身器材並花錢來說，這是一個非常複雜的決定。因此，我們在我們的網站上正在變得更容易做出決定，讓他們更清楚地做出決定，進行正確的比較以及類似的事情。這實際上只是冰山一角。這就是我集體所說的，看，我們還沒有解決所有問題。目前，我們擁有驚人的媒體效率投資回報率和低成本的客戶獲取。

But eventually, that's going to be more normalized. And in the meantime, we have to learn all the things we can to make sure that we're prepared for that moment. So it's a great question. I appreciate it.

但最終，這將變得更加正常化。與此同時，我們必須學習所有我們能學到的東西，以確保我們為那一刻做好準備。所以這是一個很好的問題。我很感激。

Next question is from George Kelly of ROTH Capital Partners.

下一個問題來自羅斯資本合夥公司的喬治·凱利。

So just a couple of questions for you. First, just about sort of the demand momentum. How do you measure what that looks like? And what is -- if you could kind of break it down sort of what you saw as the summer progressed and maybe subsequent to quarter end? I guess what I'm trying to get at is just have you seen any kind of slowdown? Or has it reaccelerated? Or what does that momentum -- what does it look like?

所以我想問你幾個問題。首先，關於需求動力。你如何衡量它的樣子？如果你能將其分解為你在夏季進行時以及季度末之後所看到的情況，那是什麼？我想我想問的是你是否看到任何形式的放緩？或者說它已經重新加速了？或者說這種勢頭是什麼——它看起來是什麼樣子？

Do you want to start?

你想開始？

I'll start. I'll limit our comments to what we saw in the quarter. We didn't really see -- we had expected to see a slowdown because, as Jim said, we thought it was a little bit more shorter-term situation and maybe most of it had happened already in the first -- the last 2 weeks of March, early few weeks of April, but we did not see, really, any sort of drop off in Q2. We were looking for this normal seasonal drop off. We were looking for some drop off when some of the restrictions began to be eased, when some people started returning to gyms, but we did not see any drop-off in Q2.

我開始吧。我的評論僅限於我們在本季度看到的情況。我們並沒有真正看到——我們原本預計會看到經濟放緩，因為正如吉姆所說，我們認為這是一個更短期的情況，也許大部分已經在過去兩週發生了3 月份，4 月初的幾週，但我們實際上沒有看到第二季度有任何下降。我們正在尋找這種正常的季節性下降。當一些限制開始放寬時，當一些人開始返回健身房時，我們希望看到一些下降，但我們在第二季度沒有看到任何下降。

And I'll just add that it's tough to completely take supply and demand and kind of pull them apart. Because what ends up happening, let's say, if you're out of stock out of an item for a few weeks, people stop checking back on that. And so you don't know if that means there's a drop in natural demand or that someone just got tired of checking your website, right?

我只想補充一點，完全理解供給和需求並將它們分開是很困難的。因為最終會發生什麼，比方說，如果你的某件商品缺貨幾週，人們就會停止查看。所以你不知道這是否意味著自然需求下降，或者有人只是厭倦了檢查你的網站，對嗎？

So we see short-term periods of that. But overall, we haven't seen that drop off in any significant way. And of course, you have to think about Q3 as well as most of our Q3 activity is in the September time frame as well. So you can't really draw a lot of conclusions on the early parts. But overall, we're just doing our best to get back in stock and as many things as possible and fulfill our backlog. In the 552s, we started originally taking a notify-me-when approach when we ran out because we just didn't want to show them a grayed out button on our website and people were just dying for these things.

所以我們看到了短期的情況。但總體而言，我們還沒有看到這種情況有任何顯著的下降。當然，您必須考慮第三季度，我們第三季度的大部分活動也是在 9 月份的時間範圍內。所以你不能根據早期的部分真正得出很多結論。但總的來說，我們只是盡力恢復庫存和盡可能多的東西並完成我們的積壓工作。在 552 年代，我們最初開始在用完時採取通知我的方法，因為我們只是不想在我們的網站上向他們顯示灰色按鈕，而人們只是渴望這些東西。

So we put that in there. And right now, we have 300,000 leads to work out. So -- work off. So that's one of the main reasons why we're not back in stock on that is because we kind of feel like we made somewhat of a commitment to those people. And we've got to send them notifications as we get each batch in and that sort of thing. So we're still in that -- the demand is very much outstripping supply. And we haven't seen a significant drop-off in any way.

所以我們把它放在那裡。目前，我們有 300,000 個潛在客戶需要解決。所以——下班吧。因此，這就是我們沒有恢復庫存的主要原因之一，因為我們感覺我們對這些人做出了某種承諾。當我們收到每批貨物之類的事情時，我們必須向他們發送通知。所以我們仍然處於這種狀態——需求遠遠超過供應。我們還沒有看到任何方面的顯著下降。

Okay. And then next question for me. It's just about the retail business. And I remember on the prior call, you had mentioned 2 new big retailers for the fall. I'm guessing one was Best Buy.

好的。然後是我的下一個問題。這只是關於零售業務。我記得在之前的電話會議上，您提到了秋季兩家新的大型零售商。我猜其中之一是百思買。

Yes.

是的。

But I guess the broader question is just, I know that you're supply-constrained, but are there a lot of kind of unexpected retailers coming to you, trying to develop a relationship? What does that all look like?

但我想更廣泛的問題只是，我知道你們的供應有限，但是是否有很多意想不到的零售商來找你們，試圖建立關係？這一切看起來是什麼樣的？

The short answer is yes, absolutely. Some retailers that you wouldn't have expected would carry fitness equipment are now deciding, hey, this is so important in our customers' lives, and they're reading their customers' behavior, and they're saying, "Hey, look, I need to start selling this whole category."

簡短的回答是肯定的，絕對的。一些你沒想到會出售健身器材的零售商現在決定，嘿，這對我們顧客的生活非常重要，他們正在閱讀顧客的行為，然後他們說，“嘿，看，我需要開始銷售整個類別。”

So they're well-known names, and there are some well-known names you wouldn't have expected necessarily to carry fitness equipment. And yes, one of the ones we mentioned last time was Best Buy, and we've gotten some terrific traction with them. They're a great team to work with. And then, of course, DICK'S Sporting Goods and Amazon as our premier partners have seen a fantastic surge in demand and have -- we've grown together.

所以他們都是家喻戶曉的名字，而且有一些你不會想到的家喻戶曉的名字一定會攜帶健身器材。是的，我們上次提到的其中之一就是百思買，我們已經從他們身上獲得了一些巨大的吸引力。他們是一支很棒的合作團隊。當然，DICK'S Sporting Goods 和亞馬遜作為我們的主要合作夥伴看到了需求的大幅增長，並且我們共同成長。

Like I said in my comments, we need to feed these retailers at the appropriate level. We first made commitments to them that we had to fulfill. In this particular business, especially when you're not paying for media in a big way, the margin suggests you should sell everything direct, but that's not a long-term view. We know, number one, for our customers to have choices to buy things. And number two, we've invested for years and years in this retailer network. We grow together with our retailers and we -- even when we don't have enough equipment to feed every mouth, we -- to the extent everybody wants to, we make sure we feed the mouth and make sure we keep our partnership intact for the long run.

正如我在評論中所說，我們需要為這些零售商提供適當的水平。我們首先向他們做出了我們必須履行的承諾。在這個特定的行業中，特別是當您不大量支付媒體費用時，利潤表明您應該直接出售所有東西，但這不是一個長期的觀點。我們知道，第一，我們的客戶可以選擇購買東西。第二，我們在這個零售商網絡上投資了很多年。我們與零售商一起成長，即使我們沒有足夠的設備來養活每一個人，我們也會在每個人都想要的範圍內，確保我們養活每一個人，並確保我們的合作夥伴關係完好無損。從長遠來看。

Okay. Great. And then last question for me is just about JRNY. The new -- it sounds like there's a lot of new features, it's a real kind of step-up from the prior version. So I was just curious what the -- what you're most excited about? What do you think the prior version was lacking that this one really nails?

好的。偉大的。最後一個問題是關於 JRNY 的。新的——聽起來有很多新功能，這是對之前版本的真正升級。所以我只是好奇你最興奮的是什麼？您認為之前的版本缺少哪些內容，而這個版本卻真正做到了這一點？

Well, I was excited before, but it's a piece of software, right? And it's a part of our experience with content in software and our equipment that all go together. And so I was super excited about it. The thing I was probably least excited about it was only on the Max Total in the way that we wanted it to actually come alive.

嗯，我之前很興奮，但它是一個軟件，對吧？這是我們在軟件和設備中的內容經驗的一部分，這些內容都結合在一起。所以我對此非常興奮。我最不感興趣的可能是 Max Total 以我們希望它真正活躍起來的方式。

So I would say the most excited I am is just that it's going to be available through the portfolio. And people are going to get a chance to use it without buying the top of the line $2,800 model as being the only option. So I'm like super excited about that. I would say, I continue to be excited about the AI-driven coaching that makes it feel like it's a one-to-one experience. Even though it's algorithmic, and that, we think, is still -- it's a differentiator for us. And the customized workout, it's a differentiator for us. We love those things.

所以我想說，最令我興奮的是它將通過產品組合提供。人們將有機會使用它，而無需購買 2,800 美元的頂級型號作為唯一選擇。所以我對此感到非常興奮。我想說，我仍然對人工智能驅動的輔導感到興奮，它讓人感覺這是一種一對一的體驗。儘管它是算法性的，而且我們認為這仍然是我們的一個差異化因素。定制鍛煉對我們來說是一個與眾不同的因素。我們喜歡那些東西。

And I think the things that I would have said, where is our weakness? The one I would have pointed to, especially when COVID hit, is trainer-led videos. I would have said, hey, people want to use those more often, maybe even when they're not using our equipment -- and we had some, but not enough. And that's one of the things that I'm really excited we're bringing home.

我想我想說的是，我們的弱點在哪裡？我要指出的一個是培訓師主導的視頻，尤其是在新冠疫情爆發時。我會說，嘿，人們想要更頻繁地使用這些設備，即使他們不使用我們的設備 - 我們有一些，但還不夠。這是我非常興奮我們能帶回家的東西之一。

Now we're not betting on live the way some others have. We're looking at -- everything in JRNY is based on big time consumer insight. And we don't have a lot of people saying, I really want to have a live experience. They want variety, and they want -- they want something that, like our coaching and like our customized workouts that change every day and keep it interesting, they like to use our Netflix capabilities, Hulu. We're even adding some more this particular time.

現在我們不再像其他人那樣進行現場投注。我們正在關注——JRNY 的一切都是基於對消費者的深入洞察。我們沒有很多人說，我真的很想有現場體驗。他們想要多樣性，他們想要一些東西，比如我們的教練和我們每天都在變化並保持有趣的定制鍛煉，他們喜歡使用我們的 Netflix 功能 Hulu。這次我們甚至還添加了更多內容。

So it's just a bunch -- a combination of these things, explore the world, I'm also quite excited about, too, because that was a separate SKU. And now that is coming -- that will be usable within the JRNY members platform, and that's going to be exciting, too. So a bunch more options on a bunch more equipment, and then still leading with our algorithmic approach.

所以它只是一堆——這些東西的組合，探索世界，我也很興奮，因為那是一個單獨的 SKU。現在這一切即將到來——它將可以在 JRNY 會員平台中使用，這也將令人興奮。因此，在更多設備上有更多選擇，然後仍然以我們的算法方法領先。

And I would say, over time and taking a big step, any perceived weakness we have, we feel like we're backfilling. And like I said, it's software. So we're going to keep on that particular journey.

我想說，隨著時間的推移，邁出一大步，我們發現的任何弱點，我們都會覺得我們正在彌補。就像我說的，它是軟件。所以我們將繼續這個特定的旅程。

Chris, is there anything you would add to that?

克里斯，你還有什麼要補充的嗎？

No, Jim, I think you covered everything.

不，吉姆，我認為你涵蓋了一切。

Jim talks long enough, he's going to say.

吉姆說得夠長的了，他會說。

We have a question from Mark Smith, Lake Street Capital Markets.

我們有來自 Lake Street Capital Markets 的 Mark Smith 的問題。

First one for me. Can you guys quantify at all the shipping cost increases during the quarter? And maybe where that is today?

對我來說第一個。你們能量化本季度所有運輸成本的增加嗎？也許今天是哪裡？

We're not going to disclose that publicly, right? Because we think we have some pretty good deals that we've come up with. But I think -- I just wanted to point out and make sure that you -- the analysts were aware of the different pressures on margin. We're going to do a lot of things on the promotional pricing and some of the cost concessions we're getting from our suppliers, but not all of it can flow down to the bottom line because we do have these things that are new this year versus last year related to logistics.

我們不會公開披露這一點，對嗎？因為我們認為我們已經達成了一些非常好的交易。但我認為——我只是想指出並確保你們——分析師們意識到了利潤率的不同壓力。我們將在促銷定價和我們從供應商那裡獲得的一些成本優惠方面做很多事情，但並非所有這些都可以流向底線，因為我們確實有這些新的東西今年與去年相比與物流有關。

And obviously, if they were way too expensive and would really kill our margins, we wouldn't do them. But we just -- we're trying to deliver for our customers and match supply and demand. And if there's slight differences in cost, we're going to go ahead and do that because we think that's what built our business over time.

顯然，如果它們太貴並且真的會扼殺我們的利潤，我們就不會這樣做。但我們只是——我們正在努力為客戶提供服務並匹配供需。如果成本略有差異，我們將繼續這樣做，因為我們認為這就是隨著時間的推移建立我們業務的原因。

Bill, is there anything you'd like to add to that?

比爾，你還有什麼要補充的嗎？

No. I agree. Aina said it well in front of you Jim. I mean the cost pressures are both on the inbound and the outbound side. And just be aware of that as we navigate through those challenges. But I agree with Aina, I think we've negotiated some comparatively favorable deals even at elevated rates. So we'd like to keep that under our hats.

不，我同意。艾娜在吉姆面前說得很好。我的意思是成本壓力來自入境和出境雙方。當我們應對這些挑戰時，請注意這一點。但我同意艾娜的觀點，我認為我們已經談判達成了一些相對有利的交易，即使價格較高。所以我們希望將其保密。

Yes. We're just trying to wink at you, so you don't take the Q2 margin rate and apply it to infinity.

是的。我們只是想向您眨眼，這樣您就不會採用第二季度的保證金率並將其應用到無窮大。

No, that's fair. It's a helpful call out. Is there anything else as we kind of look out there in raw materials or labor? Anything else along the line in the supply chain that maybe is a potential headwind to call out?

不，這很公平。這是一個很有幫助的呼籲。我們在原材料或勞動力方面還有其他什麼嗎？供應鏈中還有哪些可能是潛在阻力的因素？

Yes. I'd say we're in pretty favorable conditions regarding commodities and things, and labor costs are certainly under control. It really is the challenges of getting product movement in the COVID environment.

是的。我想說，我們在商品和事物方面處於相當有利的條件，而且勞動力成本肯定受到控制。這確實是在新冠疫情環境下推動產品流動的挑戰。

Okay. Perfect. And then, just as we look at shipping and getting the product into customers' hands, can you talk about expected delivery times today, kind of where you're at versus where you were during the quarter? And then also talk about where you are versus -- maybe versus your peers?

好的。完美的。然後，正如我們關注運輸並將產品送到客戶手中一樣，您能否談談今天的預期交貨時間，以及您在本季度的情況？然後也談談你與其他人相比的情況——也許與你的同齡人相比？

Yes. I mean it's a constantly evolving thing, and it's almost product by product. The thing I actually do is I put the major products in a basket on our website, and I check back every day to see what our promise period is and whether you can buy them. That's a pretty good indicator. That helps me not even have to read management reports, but see what our customers are seeing. And if you do that, you'll see promise periods that are pretty quick, a matter of days to things that are out 30, 60 days.

是的。我的意思是，這是一個不斷發展的事物，而且幾乎是一個又一個產品。我實際上做的事情是，我把主要產品放在我們網站上的一個籃子裡，我每天都會回來查看我們的承諾期限是多少以及您是否可以購買它們。這是一個非常好的指標。這幫助我甚至不必閱讀管理報告，而是了解我們的客戶所看到的。如果你這樣做，你會看到承諾期非常快，幾天之內就可以完成，而30、60天內就完成了。

And then you eventually see some products like the 552s, where you've got a grayed out button and a notify me when because we're working off that long-term backlog there.

然後您最終會看到一些產品，例如 552s，其中有一個灰色按鈕和一個“通知我時間”按鈕，因為我們正在處理那裡的長期積壓訂單。

Relative to competitors, I think, I don't know how quickly -- as one of the few public companies in the space, and I think one of the first to report, we don't know what other people are experiencing, other than taking that same approach that I mentioned with our basket. And we see many of our competitors who only have a few products actually out of stock for 8, 10, 12 weeks at a time.

相對於競爭對手，我認為，我不知道有多快——作為該領域為數不多的上市公司之一，而且我認為是最先報告的公司之一，我們不知道其他人正在經歷什麼，除了採用我在籃子中提到的相同方法。我們看到許多競爭對手實際上只有少數產品缺貨 8、10、12 週。

So we know we're not the only ones. And we do think a lot of the secrets to our success will be how we continue to push ourselves on the ability to add to our supply base and match that well with our demand.

所以我們知道我們不是唯一的人。我們確實認為，我們成功的很多秘訣在於我們如何繼續提高自己的能力，擴大我們的供應基礎並使其與我們的需求很好地匹配。

Okay. And then last one for me. Just -- and this might be hard to call out or quantify. But as you look at any changes in consumer behavior during the quarter, even post quarter, in price points maybe that they're looking more at, anything that you've seen really changing in consumer behavior here over the last -- if we look at the last 60 days?

好的。然後是我的最後一張。只是——這可能很難指出或量化。但是，當你觀察本季度甚至季度後消費者行為的任何變化時，他們可能會更多地關注價格點，過去你所看到的消費者行為真正發生的任何變化——如果我們看一下過去60天？

I don't -- I can't think of anything that jumps out at me other than we've been able to sell some products that we haven't sold well for a while, meaning I think people look for the most popular products. And when they can't find it here or maybe at a competitor, they'll try something that they wouldn't have tried before. And we've seen -- we've seen that on a few of our products.

我不知道——除了我們能夠銷售一些已經有一段時間賣得不好的產品之外，我想不出還有什麼讓我驚訝的，這意味著我認為人們尋找最受歡迎的產品。當他們在這里或競爭對手那裡找不到它時，他們會嘗試一些以前從未嘗試過的東西。我們已經在我們的一些產品上看到了這一點。

It's also been great to see the Max Total. That's another one that sort of jumps out. Of course, that was so much of our decline as a company wrapped up in that one. And we said for several quarters, hey, the quarter that we get to when we actually positively comp Max Total is going to be a super nice margin quarter. Well, we did that.

看到最大總計也很高興。這是另一種跳出來的。當然，作為一家陷入這種困境的公司，這在很大程度上是我們衰落的原因。我們在幾個季度裡都說過，嘿，當我們真正積極地比較 Max Total 時，我們所到達的季度將是一個非常好的利潤率季度。嗯，我們做到了。

Now I don't know if that's it's sustainable or not or whether that was just part of this. I am optimistic about our new offerings in the Max Line, as I mentioned. So hopefully, it's that there. But those are the only things that really come to mind. Does anyone else have -- no.

現在我不知道這是否可持續，或者這是否只是其中的一部分。正如我提到的，我對 Max Line 中的新產品感到樂觀。所以希望它就在那裡。但真正想到的只有這些。還有其他人有嗎——沒有。

No. I think the strength trend is something we're watching closely. There's -- certainly, with the gym closures, that impacts the strength people pretty significantly. And we obviously have some excellent strength products. So we're really watching those trends closely.

不，我認為我們正在密切關注實力趨勢。當然，隨著健身房的關閉，人們的力量會受到相當大的影響。我們顯然擁有一些實力出色的產品。所以我們正在密切關注這些趨勢。

Yes. That's probably the one that if we could go back and rewrite history, other than warn people that this was coming, we probably would have ordered a lot more strength. Because people could go out, as we mentioned on the last call, people could go out and get some cardio, especially as the weather got better, but they didn't really have an alternative to their gym in terms of strength training that -- that's the one that we wish we could have possibly had a crystal ball on.

是的。這可能就是，如果我們能夠回去重寫歷史，除了警告人們這一切即將到來之外，我們可能會訂購更多的力量。因為人們可以出去，正如我們在上次電話中提到的那樣，人們可以出去做一些有氧運動，尤其是當天氣好轉時，但在力量訓練方面，他們實際上沒有其他選擇可以替代健身房——這就是我們希望能夠擁有水晶球的那個。

There are no further questions at this time. I'd like to turn the floor over to Jim Barr for closing comments. Please go ahead, sir.

目前沒有其他問題。我想請吉姆·巴爾 (Jim Barr) 發表結束評論。請繼續，先生。

Thank you, Jerry. I'd like to thank everyone for joining our call today and for your continued support of Nautilus. We look forward to providing you with another update on the business in a few months, on our third quarter earnings call.

謝謝你，傑瑞。我要感謝大家今天加入我們的電話會議並感謝你們對 Nautilus 的持續支持。我們期待在幾個月後的第三季度財報電話會議上為您提供有關該業務的最新信息。

Please stay safe and healthy. Have a good rest of the day, onwards and upwards. Thank you.

請保持安全和健康。好好休息一天，繼續向上。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。