高樂氏 (CLX) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to The Clorox Company First Quarter Fiscal Year 2024 Earnings Release Conference Call. (Operator Instructions) As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Ms. Lisah Burhan, Vice President of Investor Relations for The Clorox Company. Ms. Burhan, you may begin your conference.

女士們、先生們，美好的一天，歡迎參加 Clorox 公司 2024 財年第一季收益發布電話會議。 （操作員說明）謹此提醒，此通話正在錄音。現在我想介紹今天電話會議的主持人 Lisah Burhan 女士，她是 Clorox 公司投資者關係副總裁。布爾漢女士，您可以開始會議了。

Thank you, Jen. Good afternoon, and thank you for joining us. On the call today with me are Linda Rendle, our CEO; and Kevin Jacobsen, our CFO. I hope everyone has had a chance to review our earnings release and prepared remarks, both of which are available on our website. In just a moment, Linda will share a few opening comments, and then we'll take your questions.

謝謝你，珍。下午好，感謝您加入我們。今天與我一起參加電話會議的是我們的執行長琳達·倫德爾 (Linda Rendle)；和我們的財務長凱文雅各布森。我希望每個人都有機會查看我們的收益發布和準備好的評論，這兩者都可以在我們的網站上找到。稍後，琳達將發表一些開場評論，然後我們將回答您的問題。

During this call, we may make forward-looking statements, including about our fiscal 2024 outlook. These statements are based on management's current expectations but may differ from actual results or outcomes. In addition, we may refer to certain non-GAAP financial measures. Please refer to the forward-looking statements section, which identifies various factors that could affect such forward-looking statements, which have been filed with the SEC. In addition, please refer to the non-GAAP financial information section of our earnings release and the supplemental financial schedules in the Investor Relations section of our website for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

在本次電話會議中，我們可能會做出前瞻性聲明，包括我們的 2024 財年展望。這些陳述是基於管理階層目前的預期，但可能與實際結果或成果不同。此外，我們可能會參考某些非公認會計準則財務指標。請參閱前瞻性陳述部分，其中列出了可能影響此類前瞻性陳述的各種因素，這些因素已提交給美國證券交易委員會。此外，請參閱我們收益發布的非 GAAP 財務資訊部分以及我們網站投資者關係部分的補充財務明細表，以了解非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳。

Now I'll turn it over to Linda.

現在我把它交給琳達。

Hello, everyone, and thank you for joining us. We entered fiscal year 2024 with momentum, supported by strong progress on our priorities over the past several quarters to maintain top line growth while rebuilding margins. Prior to the August cyber-attack, our performance was on track with our expectations with solid consumption and market share trends, including improving volume consumption as we lapped year ago pricing actions. This is a testament to the strength and superior value of our brands and the role they play in our consumers' daily lives.

大家好，感謝您加入我們。我們以強勁勢頭進入 2024 財年，這得益於過去幾季我們在維持營收成長並重建利潤率的優先事項方面取得的強勁進展。在八月的網路攻擊之前，我們的業績符合我們的預期，消費量和市場份額趨勢穩定，包括隨著我們去年的定價行動而改善的消費量。這證明了我們品牌的實力和卓越價值及其在消費者日常生活中所扮演的角色。

In addition, we continue to realize benefits from our margin-enhancing initiatives, including pricing, cost savings and supply chain optimization. However, the cyber-attack caused wide-scale operational disruptions, which adversely impacted our first quarter financial performance. While we're not yet back to normal, we are now on a solid path to operational recovery, but this will take some time. We're laser-focused on our immediate priorities of rebuilding retailer inventories as quickly as possible, preserving merchandising activity and improving our distribution to return to the trajectory we were on prior to the cyber-attack.

此外，我們繼續從提高利潤的措施中獲益，包括定價、成本節約和供應鏈優化。然而，網路攻擊造成了大規模的營運中斷，對我們第一季的財務表現產生了不利影響。雖然我們尚未恢復正常，但我們現在正走在營運恢復的堅實道路上，但這需要一些時間。我們專注於盡快重建零售商庫存、保留商品銷售活動並改善我們的分銷以恢復到網路攻擊之前的軌道等當務之急。

We've proven that we can execute and rebuild inventories, earn back our shelf space and distribution and regain and ultimately drive share growth over time, just as we did coming out of the pandemic, when we restored supply following extraordinary demand for our products. We're confident in our ability to do so again, given the strength and superior value of our brands, the relevance of our IGNITE strategy and the relentless focus of our teams on executing with excellence to win in the marketplace.

我們已經證明，我們可以執行和重建庫存，贏回我們的貨架空間和分銷，並隨著時間的推移重新獲得併最終推動份額增長，就像我們擺脫大流行時所做的那樣，當時我們在對產品的巨大需求後恢復了供應。鑑於我們品牌的實力和卓越價值、IGNITE 策略的相關性以及我們團隊對卓越執行以贏得市場的不懈關注，我們對再次實現這一目標充滿信心。

As we navigate the near term, we remain committed to our long-term strategies for growing the top line and rebuilding margins, which includes investing in innovation and brand building, driving our hallmark cost savings program and advancing our digital transformation and streamlined operating model. Looking ahead, the disruption of the last few months does not change The Clorox story. As we execute on our recovery efforts, we're confident that our portfolio of leading brands in essential categories and our IGNITE strategy will enable us to regain market share and deliver consistent profitable growth over time.

在我們的近期發展中，我們仍然致力於實現增加收入和重建利潤的長期策略，其中包括投資於創新和品牌建設、推動我們標誌性的成本節約計劃以及推進我們的數位轉型和簡化的營運模式。展望未來，過去幾個月的混亂並沒有改變 Clorox 的故事。當我們執行復甦工作時，我們相信，我們在重要類別中的領先品牌組合和我們的 IGNITE 策略將使我們能夠重新獲得市場份額，並隨著時間的推移實現持續的獲利成長。

With that, Kevin and I will take your questions.

接下來，凱文和我將回答你的問題。

(Operator Instructions) Our first question will come from Peter Grom with UBS.

（操作員說明）我們的第一個問題將來自瑞銀集團的 Peter Grom。

So Kevin, I was hoping to just get some color on the phasing implied in the guidance in the context of the 1Q performance in some of the 2Q commentary. Maybe just to start with gross margin up nicely in 1Q. Can you maybe walk us through the drivers that actually would push gross margin to be flat for the year? And then I know from a sales perspective, it's still a wide range, but it does seem to imply a decline in the back half of the year. Is that just some conservatism? Or are there key reasons behind that?

所以凱文，我希望在第二季的一些評論中，在第一季表現的背景下，對指導中隱含的階段性有一些了解。也許只是從第一季的毛利率良好開始。您能否向我們介紹一下實際上會推動今年毛利率持平的驅動因素？然後我知道從銷售的角度來看，它仍然是一個很大的範圍，但它似乎確實意味著下半年的下降。這只是某種保守主義嗎？或者這背後有什麼關鍵原因嗎？

Let me start with gross margin phasing and talk about what we're seeing in Q1 and sort of how we see that playing out as we go forward. The 1 thing to keep in mind is -- and these assumptions really have not changed since we talked last quarter in August, which is, as it relates to pricing, as you may know, we took 4 rounds of pricing. We've now lapped 3 rounds of pricing. So you're going to start to see the benefit of pricing continue to moderate as we move throughout the fiscal year, and we'll lap the fourth round by the end of this quarter.

讓我從毛利率階段開始，談談我們在第一季看到的情況以及我們如何看待未來的發展。要記住的一件事是——自從我們八月份上個季度討論以來，這些假設實際上沒有改變，因為它與定價有關，正如你可能知道的，我們進行了 4 輪定價。我們現在已經進行了 3 輪定價。因此，隨著我們整個財年的進展，您將開始看到定價的好處繼續減弱，並且我們將在本季結束時完成第四輪。

And so as we get into the back half of the year, we'll no longer have the benefit of pricing. Now we're still taking pricing internationally. So there'll be some benefit, but not to the degree you're seeing. And as an example, if you look at our most recent quarter, pricing benefit to margin is worth about 470 basis points. So a nice contributor and you'll see that moderate as we go through the year.

因此，當我們進入今年下半年時，我們將不再享受定價的好處。現在我們仍然採用國際定價。所以會有一些好處，但沒有達到你所看到的程度。舉個例子，如果你看看我們最近一個季度，利潤率的定價效益約為 470 個基點。所以，這是一個很好的貢獻者，當我們度過這一年時，你會看到它的溫和。

And then the other item I would highlight is, we're going to see our belief is increased merchandising levels. And again, this is not a change in our assumptions. We continue to operate below pre-pandemic levels. Typically, we merchandise about 25%, 27% of our business. And last year, we ended up about 20%. And so we continue to expect that to increase as we go forward. And so our assumption is in the back half of the year that we'll see increased levels of merchandising support that will put a low pressure on margin.

我要強調的另一件事是，我們將看到我們的信念是提高銷售水平。再說一次，這並不是我們假設的改變。我們繼續以低於疫情前水準的方式運作。通常情況下，我們的銷售業務約占我們業務的 25%、27%。去年，我們的佔比約為 20%。因此，我們繼續預計隨著我們的前進，這一數字將會增加。因此，我們的假設是，在今年下半年，我們將看到銷售支援水準的提高，這將對利潤率造成較低的壓力。

And then lastly, we continue to believe that we're going to see a consumer that's under more pressure in the back half of the year. And for all the reasons you folks know is we talk about a return to paying student loan, payments, increasing interest rates and the pressure that will put on consumers. And typically, that puts a little bit of pressure on our categories. Now based on the nature of our categories being everyday essential categories, it's not a significant impact. But usually, you could see consumption down 1 or 2 points as a result of that. And that's an assumption we've continued to assume since the beginning of the year, and that will pressure margins a little bit as well.

最後，我們仍然相信，我們將看到消費者在今年下半年面臨更大的壓力。出於大家都知道的所有原因，我們談論的是償還學生貸款、付款、利率上升以及給消費者帶來的壓力。通常，這會給我們的類別帶來一點壓力。現在，根據我們的類別是日常必需類別的性質，這不會產生重大影響。但通常情況下，您可能會看到消費因此而下降 1 或 2 個百分點。這是我們自今年年初以來一直假設的假設，這也會對利潤率造成一些壓力。

Now on the sales, talk a little bit about the back half. Obviously, you folks saw we were down 20% in Q1. And if we deliver our expectation for Q2, which is sales to grow mid-single digits, that would project in the back half of the year on a reported basis, sales being flat to down high single digits. And that's a fairly wide range. I think it's a function of both the macroeconomic uncertainty about how this plays out with the consumer. But then the additional variability we have is we're working to rebuild some of the distribution and share we've lost, we fully expect to rebuild that, but we recognize there will be some variability in the exact pace of that recovery and it's not totally in our control. And so that will have some impact on our sales performance as well.

現在談銷售，談後半部。顯然，你們看到我們第一季下降了 20%。如果我們實現對第二季度的預期，即銷售額成長中個位數，那麼根據報告，預計今年下半年銷售額將持平或下降高個位數。這是一個相當廣泛的範圍。我認為這是宏觀經濟不確定性對消費者影響的結果。但是，我們擁有的額外可變性是，我們正在努力重建我們失去的一些分配和份額，我們完全希望重建它，但我們認識到恢復的確切速度會存在一些可變性，而且它不是完全在我們的掌控之中。因此，這也會對我們的銷售業績產生一些影響。

But I think, Peter, what's most important is, Linda and I are quite confident we will rebuild back that distribution share we lost as a result of cyber event. But trying to predict the exact pace of that recovery is a little difficult to do. And so we provide a range that we think reflects that variability.

但我認為，彼得，最重要的是，琳達和我非常有信心，我們將重建我們因網路事件而失去的分銷份額。但試圖預測復甦的確切速度有點困難。因此，我們提供了一個我們認為反映這種變化的範圍。

And then maybe just a follow-up. I know this may be hard to answer as we're kind of only in the first quarter of this year. But do you have any perspective around whether you think the disruption could have some lasting impacts beyond this year? Maybe from a top line perspective, do you see any risk that there could be shelf-space losses or permanent share shifts, anything from a margin perspective. I guess what I'm really trying to understand is whether you think you can fully recapture the earnings loss from the incident as you think about fiscal '25.

然後也許只是後續行動。我知道這可能很難回答，因為我們才剛進入今年第一季。但您是否認為這次中斷是否會在今年之後產生一些持久影響？也許從頂線的角度來看，您是否看到任何可能存在貨架空間損失或永久份額轉移的風險，從利潤的角度來看。我想我真正想了解的是，當您考慮 25 財年時，您是否認為可以完全收回該事件造成的收入損失。

We're really confident there's no structural issues related to this incident. It's short term in nature. And as Kevin highlighted, we have full confidence we'll be able to restore distribution and share over time. And what Kevin highlighted is exactly right. It's about pace. And what we're focused on this year is making progress as quickly as we can, and that starts in Q2 with rebuilding inventories. And we already are shipping well ahead of consumption now as we finished out the end of this month and we intend to continue to do that for the rest of the quarter with the goal of getting back to inventory in retailers as fast as we possibly can. We think we'll get through the bulk of that in Q2. We'll have some left to do in the back half of the year.

我們非常有信心這次事件不存在任何結構性問題。它本質上是短期的。正如凱文所強調的那樣，我們完全有信心隨著時間的推移能夠恢復分發和分享。凱文強調的完全正確。這是關於節奏的。我們今年的重點是盡快取得進展，並從第二季開始重建庫存。在本月底結束時，我們的發貨速度已經遠遠超出了消費，我們打算在本季度剩餘時間內繼續這樣做，目標是盡快恢復零售商的庫存。我們認為我們將在第二季完成大部分工作。下半年我們還有一些事情要做。

And then, as Kevin said, rebuilding ensuring we have merchandising and distribution back to where it is. We are working as quickly as feasible to get as much of that done in '24 as we possibly can and that's what we're focused on. And we have a history of doing that. If you look back when, for example, Pine-Sol was out due to a product issue, we were able to get that distribution back quickly. If you look at post-COVID, the ramp-up on distribution was fast. And then we had a couple of quarters after that initial ramp-up where we continue to make progress. But what I can say is we intend to do as much of it as we possibly can in fiscal year '24. There's no structural issues related to this in our business. And we have strong confidence that given the superior value of our brands, our investments, and innovation that we will get it back. And again, as Kevin said, it's a matter of timing.

然後，正如凱文所說，重建確保我們的銷售和分銷回到原來的狀態。我們正在盡可能快地工作，以便在 24 年盡可能多地完成這些工作，這就是我們的重點。我們有這樣做的歷史。例如，如果您回顧 Pine-Sol 因產品問題而停產的情況，我們能夠快速恢復該發行版。如果你看看新冠疫情之後的情況，你會發現分發速度很快。在最初的提升之後，我們有幾個季度繼續取得進展。但我可以說的是，我們打算在 24 財年盡可能做到這一點。我們的業務不存在與此相關的結構性問題。我們堅信，鑑於我們的品牌、投資和創新的卓越價值，我們一定能收回成本。正如凱文所說，這又是一個時間問題。

And our next question comes from Filippo Falorni with Citi.

我們的下一個問題來自花旗銀行的 Filippo Falorni。

Linda, maybe just can you give us a little more color on the conversation with key retailers as you go and try to rebuild the shelf space. Is there a requirement of increasing merchandising? It seemed like part of your gross margin outlook as well. Just any color on how those conversations have been going so far.

琳達，也許你可以在你嘗試重建貨架空間時，給我們更多關於與主要零售商的對話的信息。是否有增加商品的要求？這似乎也是你們毛利率前景的一部分。到目前為止，這些對話的進展只是任何顏色。

Yes. Thank you for the question and for the opportunity to once again thank my retailer partners for everything they have done during this time, they have been tremendous. And that is without exception, they have all gone above and beyond to ensure that we're getting as much product as possible to their shoppers. They partnered with us on manual operations, which is not easy for anyone to do. It wasn't easy for us and certainly not easy for retailers. They've been tremendous, and they continue to be tremendous.

是的。感謝您提出問題，並有機會再次感謝我的零售商合作夥伴在這段時間所做的一切，他們非常棒。無一例外，他們都竭盡全力確保我們為他們的購物者提供盡可能多的產品。他們與我們合作進行手動操作，這對任何人來說都不容易做到。這對我們來說並不容易，對零售商來說當然也不容易。他們曾經是偉大的，而且將繼續是偉大的。

And now our focus is shifting from manual operations to rebuilding that inventory and they have the same goal of building it as quickly as we do, and they are taking every measure on their side to ensure that we have the right appointments et cetera, to do that. And it's a busy season for them with holidays, et cetera, and they're still prioritizing that. And then, of course, our joint focus is on ensuring that we get merchandising for things like cold and flu. We have Burt's holiday merchandising. We're focused and they are focused on ensuring that we meet those deadlines and that we get those in front of consumers and shoppers at that time.

現在，我們的重點正在從手動操作轉向重建庫存，他們與我們有著同樣的目標，即盡快建立庫存，他們正在採取一切措施，以確保我們有正確的任命等，那。對他們來說，現在是一個繁忙的季節，有假期等等，他們仍然優先考慮這一點。當然，我們共同的重點是確保我們獲得感冒和流感等商品的商品。我們有伯特的節日商品。我們和他們都專注於確保我們在最後期限前完成任務，並確保我們在當時將這些內容呈現在消費者和購物者面前。

And then ultimately, what our goal is, and this is really important to retailers, too. Just like coming out of COVID, we had stronger relationships with our retailer partners than we did going in, and they were strong to start. We very much intend to make this a moment to be even stronger with our retailers through transparency, through partnering, through ensuring that we're doing everything feasible to get them what they need. So I feel great about where we are. And again, my thank you to them for everything that they're doing. And we are well on our path to restore where we need to be from an inventory perspective, and then we'll get the hard work back of ensuring we have innovation and great plans with their shoppers, so we can continue to get focused on growing categories once we get past this initial recovery.

最終，我們的目標是什麼，這對零售商來說也非常重要。就像走出新冠疫情後一樣，我們與零售商合作夥伴的關係比剛進入時更牢固，而且他們一開始就很強大。我們非常希望透過透明度、合作以及確保我們盡一切可能為他們提供所需的東西，讓我們與零售商的關係更加緊密。所以我對我們現在的處境感覺很好。我再次感謝他們所做的一切。從庫存的角度來看，我們正在恢復我們需要的狀態，然後我們將努力工作，確保我們有創新和與購物者一起制定偉大的計劃，這樣我們就可以繼續專注於增長一旦我們度過了最初的復甦階段。

Got it. That's helpful. And then, Kevin, maybe a follow-up on your gross margin question. Your commodity impact in the quarter and the gross margin bridge was 1 of the lowest in a very long time. So like can you give us a sense of whether your expectation on the commodity front for the balance of the year and maybe some help with the phasing.

知道了。這很有幫助。然後，凱文，也許是關於你的毛利率問題的後續行動。該季度的商品影響和毛利率橋是很長一段時間以來最低的之一。那麼，您能否讓我們了解您對今年剩餘時間的大宗商品方面的期望，以及可能對分階段提供一些幫助。

Sure. Happy to, Filippo. We came into the year with an expectation we have about $200 million worth of supply chain inflation. Now that's broader than just commodities. That's inflation across the entire supply chain. And that is still an inflationary environment, but certainly moderating versus what we've seen over the last few years. As you look at that $200 million, about 1/3 of that we anticipate is commodity cost inflation, about 2/3 is in other areas of supply chain, primarily driven by wage inflation that shows up in a lot of different areas.

當然。很高興，菲利波。進入這一年，我們預計供應鏈通膨將達到約 2 億美元。現在，這不僅僅是商品。這就是整個供應鏈的通貨膨脹。這仍然是一個通膨環境，但與我們過去幾年所看到的情況相比，通膨肯定有所放緩。看看這 2 億美元，我們預計其中約 1/3 是商品成本通膨，約 2/3 是供應鏈的其他領域，主要是由許多不同領域出現的工資通膨推動的。

As it relates to commodities, we still expect to see commodity cost inflation this year. It has evolved a little bit. We've seen some areas coming in lower than originally anticipated. Chemicals being 1 of those areas, substrate as well. But then there are other items that we are seeing increases and primarily petroleum-based products. So some diesel solvents and even some of the ag products are a little higher, but mostly puts and takes. And so we still expect about $200 million worth of total supply chain inflation and that includes commodities.

就大宗商品而言，我們仍然預期今年大宗商品成本將會上漲。它已經進化了一點。我們發現有些地區的價格低於最初的預期。化學品就是其中之一，基質也是。但我們也看到其他產品增加，主要是石油產品。因此，一些柴油溶劑甚至一些農業產品的價格略高，但主要是看跌和拿貨。因此，我們仍預期供應鏈通膨總額約為 2 億美元，其中包括大宗商品。

And in terms of phasing, it's pretty consistent through the year. I would think a little bit of increase in the back half of the year, to your point, is fairly modest in Q1, about 20 basis points. And so you'll see a little bit of that back loaded. But again, it's fairly modest relative to what we've been dealing with for the last several years.

就分階段而言，這一年的情況非常一致。我認為，就您的觀點而言，今年下半年的一點點增長在第一季相當溫和，約為 20 個基點。所以你會看到其中有一點被重新加載。但同樣，相對於我們過去幾年所處理的情況來說，這是相當溫和的。

And we'll hear next from Anna Lizzul with Bank of America.

接下來我們將聽到美國銀行 Anna Lizzul 的演講。

I just wanted to ask on regaining distribution. How much of the distribution recovery will need to be driven by innovation and do you already have this innovation in the pipeline? Anything in particular you had in the plan for fiscal '24?

我只是想問一下恢復分配的問題。有多少分銷復甦需要由創新驅動？您是否已經在醞釀這項創新？您在 24 財年的計畫中有什麼特別的內容嗎？

Thanks for the question. So the first priority, of course, will be restoring the distribution of the everyday items we have on the shelf that performed really well from a retailer perspective and consumer perspective. So we want to make sure that we get those back on and because we're very choiceful in how we work with retailers on the distribution and shelving that we have, the items that we have on the shelf deserve to be on there, and we're going to work to get those back on.

謝謝你的提問。因此，首要任務當然是恢復貨架上日常用品的分配，從零售商和消費者的角度來看，這些物品的表現都非常好。因此，我們希望確保重新恢復這些產品，因為我們在與零售商合作的方式上非常有選擇，我們擁有的分銷和貨架，我們貨架上的物品應該放在那裡，我們我們將努力讓它們恢復正常。

But your point on innovation is exactly right. How we continue to delight consumers and shoppers and drive growth in the category is on innovation. And we had a team of people that we walled off as we were dealing with the initial impacts of this cyber-attack to ensure that we were able to ship the innovation that we have in the back half. And we're happy to report that innovation in the back half will go with plans. And all of our major brands will continue to have innovation that ships at that time, and we're working with retailers to ensure we get that on shelf as quickly as possible and that we get that in front of their shoppers. So we feel very confident about the base distribution that we will rebuild back as well as the strong innovation plans we have on all major brands in the back half and getting that on shelf with retailers.

但你關於創新的觀點是完全正確的。我們如何繼續取悅消費者和購物者並推動該類別的成長取決於創新。當我們處理這次網路攻擊的初步影響時，我們有一個團隊被隔離起來，以確保我們能夠在後半部分交付我們的創新成果。我們很高興地報告說，後半部分的創新將按計劃進行。我們所有的主要品牌將繼續在那時推出創新產品，我們正在與零售商合作，以確保我們盡快將其上架，並將其呈現在他們的購物者面前。因此，我們對我們將重建的基礎分銷以及我們在後半段對所有主要品牌制定的強有力的創新計劃以及將其上架給零售商感到非常有信心。

And I wanted to ask around advertising and sales promotional spend. You mentioned it will be about 11% of sales. Is this enough given the disruption and potential loss in market share versus a similar percentage of sales that peers are spending on advertising and promotion.

我想詢問一下廣告和促銷支出。你提到這將佔銷售額的 11% 左右。考慮到市場份額的破壞和潛在損失，與同業在廣告和促銷上支出的類似銷售額百分比相比，這是否足夠？

Yes. As you know, we'll continue to spend about 11% of sales on advertising and sales promotion, which was up versus last year where we spent about 10%. And we continue to believe this is the right level of spending to support the brands as we get through this inventory recovery and growth phase as we head into the back half. And of course, we'll make any adjustments that we see necessary by brand, et cetera. And it's also supported, I would note, by continued very strong performance from an ROI perspective. So we're getting more and more for that spend. So not only are we spending at a higher rates but we're also getting more for every dollar that we invest. And we'll continue to monitor that closely. But between that and the increased promotional environment we expect to see, we think we have the right money in the market to ensure that retailers have the right plans and the consumers are seeing our brands from a marketing perspective.

是的。如您所知，我們將繼續將銷售額的 11% 左右用於廣告和促銷，這比去年的 10% 左右有所增加。我們仍然相信，隨著我們進入下半年，我們將度過庫存恢復和成長階段，這是支持品牌的正確支出水準。當然，我們會根據品牌等進行我們認為必要的任何調整。我要指出的是，從投資報酬率的角度來看，它也得到了持續強勁表現的支持。所以我們的支出越來越多。因此，我們不僅以更高的速度支出，而且我們投資的每一美元也得到了更多。我們將繼續密切關注這一情況。但在這與我們期望看到的促銷環境的增強之間，我們認為我們在市場上有足夠的資金來確保零售商有正確的計劃，並且消費者從行銷的角度看待我們的品牌。

And we'll take our next question from Lauren Lieberman with Barclays.

我們將回答巴克萊銀行勞倫·利伯曼的下一個問題。

I just want to follow up on that -- the gross margin conversation you had an answer to the first question. Because 1 spot where I was a little bit confused is, Kevin, you talked about pricing and merchandising dynamics, most notably for the second half and discussed them as being the same as prior assumptions and most notably to me on the merchandising side. But I'm not -- I feel like there's a disconnect because the prior gross margin pre-cyber, which you know is like a different time and world. I don't think it would have supported the idea of gross margins kind of flattish or flat to down in the back half. So I feel like there's a piece maybe missing outside -- I think you mentioned logistics costs for 2Q. But it does really something else is pressure in gross margins in the second half. So I just wanted to follow up on that point first.

我只想跟進這一點——毛利率對話已經回答了第一個問題。因為我有點困惑的一個地方是，凱文，你談到了定價和銷售動態，尤其是下半年，並討論了它們與之前的假設相同，尤其是對我來說在銷售方面。但我不是——我覺得有脫節，因為之前的毛利率前網路時代，你知道，這就像一個不同的時間和世界。我認為這不會支持毛利率在後半段持平或持平甚至下降的想法。所以我覺得外面可能缺少一塊——我想你提到了第二季的物流成本。但它確實造成了下半年毛利率的壓力。所以我想先跟進這一點。

Yes, I'd say there's a few items. So you're exactly right. We've always assumed increased merchandising support. That was true back in August and that continues to be the case. The 1 other area, though, that we should talk about is as we're working to rebuild distribution and we're working to rebuild share, we are expecting lower sales in the back half than we were anticipating back in August. So lower sales will have some lower volume deleveraging that will impact margin. And then the other assumptions are generally similar to what we thought back 3 months ago.

是的，我想說有一些項目。所以你是完全正確的。我們一直假設增加銷售支援。八月份的情況就是如此，而且情況仍然如此。不過，我們應該談論的另一個領域是，當我們正在努力重建分銷和重建份額時，我們預計下半年的銷售額將低於我們八月的預期。因此，銷售額下降將導致銷售去槓桿化程度降低，進而影響利潤率。其他假設與我們 3 個月前的想法大致相似。

And then pricing, I guess, just to follow on also because if we're assuming that higher merchandising in the second half, that means I'm guessing that price promotion should be a headwind to sales in the back half. Is that right?

然後定價，我想，只是為了跟進，因為如果我們假設下半年的銷售量更高，這意味著我猜測價格促銷應該是下半年銷售的阻力。是對的嗎？

Well, I'd say merchandising levels overall will be as part of price mix, you'll see that show up.

嗯，我想說，整體銷售水準將成為價格組合的一部分，你會看到這一點。

So yes, I was just struggling with the shipments, right? So that if shipments this quarter roughly right are down the high 20%, call 30% for rounding sake. Having your net sales only up in the mid- to high single digits in 2Q and saying you're shipping above consumption, it just feels like shipments sprinkle should be higher than that, right? I feel like the thing we're shipping above consumption is almost like a circular logic because Nielsen is informed by what's on the shelf, not necessarily consumer demand.

所以是的，我只是在運送貨物方面遇到困難，對嗎？因此，如果本季的出貨量大致下降了 20%，則為了四捨五入而將其稱為 30%。第二季的淨銷售額僅成長到中高個位數，並表示您的出貨量高於消費量，感覺出貨量應該高於這個數字，對嗎？我覺得我們在消費之上運送的東西幾乎就像一個循環邏輯，因為尼爾森是根據貨架上的商品來了解的，而不一定是消費者的需求。

So I can certainly talk about Q2 and our expectation as you mentioned, we're projecting mid-single-digit organic sales growth in Q2. And you're exactly right. We expect, as a result of shipping above consumption, that's certainly going to help the top line relative to Q1. There's 2 items that will partially offset that. The first is we're going to continue to lap the benefit of pricing. And so you'll see that offering a smaller benefit in Q2 sequentially versus Q1. So if you saw in Q1, we had about 8 points of favorable price mix. The quarter before that, we had 16 points. So you'll continue to see that step down in Q2, and that will be a smaller benefit.

因此，我當然可以談論第二季度和我們的預期，正如您所提到的，我們預計第二季的有機銷售將實現中個位數成長。你是完全正確的。我們預計，由於運輸量高於消費量，這肯定會對第一季的營收有所幫助。有 2 個項目可以部分抵消這項影響。首先，我們將繼續享受定價帶來的好處。因此，您會發現第二季提供的收益比第一季的收益小。因此，如果您在第一季看到，我們有大約 8 個點的優惠價格組合。在此之前的一個季度，我們得到了 16 分。因此，您將繼續看到第二季的下降，這將是一個較小的好處。

And then the other item is, we are still in a position, particularly in October, we were losing consumption. We were losing sales. While we are shipping above consumption, we have not rebuilt retailer inventory levels yet. We still have auto stocks occurring. And so we are still losing sales, particularly in the month of October, probably bleed a bit into November as well. And so that's still providing a drag on sales in Q1 as well. So when you look at all that together, we think we will have that mid-single-digit growth as a result.

另一個問題是，我們仍然處於困境，特別是在十月份，我們正在失去消費。我們的銷售額正在下降。雖然我們的出貨量高於消費量，但我們尚未重建零售商庫存水準。我們仍然有汽車庫存出現。因此，我們的銷售額仍在下降，特別是在 10 月份，到 11 月份也可能會有所下降。因此，這仍然拖累第一季的銷售。因此，當你綜合考慮所有這些因素時，我們認為我們將實現中個位數的成長。

Lauren, I'll add just 1 thing, which is a nuance to your point on shipping above consumption. When we say consumption, we mean what average consumption would have been being fully in inventory. So we're shipping well beyond that level, and that's how we rebuild inventories over time. So it is a meaningful overshipment versus what we normally would.

勞倫，我只補充一件事，這與您關於運輸高於消費的觀點有細微差別。當我們說消耗時，我們指的是完全庫存的平均消耗量。因此，我們的出貨量遠遠超出了該水平，這就是我們隨著時間的推移重建庫存的方式。因此，與我們通常的情況相比，這是一個有意義的超額發貨。

Perfect. That definitely helps a lot. And then just the other thing is that it feels like, as I'm trying to piece through the model that selling in admin dollars, and I'm looking at everything versus my like model as of August 3. That you're actually able to take a good amount of cost out of selling and admin. And I was curious, and I'm just looking at straight dollars, not percentage of sales. I'm just curious how much of that you say is related to the operating model changes that were already [implied]? Is it -- some of this is maybe more variable, or has there been some belt tightening that goes with this, given the unfortunate cyber situation.

完美的。這絕對有很大幫助。然後另一件事是，感覺就像，當我試圖拼湊出以管理員美元銷售的模型時，我正在查看截至 8 月 3 日的所有內容與我的類似模型的比較。你實際上能夠節省大量的銷售和管理成本。我很好奇，我只看直接的美元，而不是銷售額的百分比。我只是好奇你所說的有多少與已經[暗示]的營運模式變化有關？是嗎？考慮到不幸的網路形勢，其中一些可能更加多變，或者是否有一些隨之而來的勒緊褲腰帶。

Yes, Lauren, this is primarily the nice work we've done on the streamlined operating model work we're doing. As you know, we're targeting to eliminate about $100 million in cost. And I'd say, keep in mind, while we talk quite a bit about the admin savings, this is really about making us a more competitive company by accelerating decision-making and getting decision-making closer to people know their consumer best. But it does generate nice savings for us, and we are very much on track by the end of this year to complete that 2-year program to generate about $100 million in reduced admin savings. And so we started that last year, and you should see us continue to drive admin savings this year as well as we complete the program.

是的，勞倫，這主要是我們在簡化營運模式方面所做的出色工作。如您所知，我們的目標是消除約 1 億美元的成本。我想說的是，請記住，雖然我們談論了很多管理費用節省，但這實際上是為了透過加速決策並使決策更接近最了解消費者的人，使我們成為一家更具競爭力的公司。但它確實為我們帶來了可觀的節省，而且我們非常有希望在今年年底前完成該為期 2 年的計劃，從而減少約 1 億美元的管理節省。我們從去年就開始了這項工作，您應該會看到我們今年繼續推動管理費用節省，並完成了該計劃。

But even in absolute dollars, you're seeing the dollars start to go down year-over-year in spite of the increased costs we're incurring because of the cyber event.

但即使以絕對美元計算，您也會看到美元開始逐年下降，儘管我們因網路事件而增加了成本。

Okay, for sure. And why not raise advertising dollars? I would have thought you want to spend -- you'd want to spend more. I get the percent of sales math, but sales are down so much. So I would just would have thought like trying to stay in front of the consumer when, frankly, this year's earnings "doesn't matter" all that much because it's a rebuild. Why not flex the advertising higher in the second half once you're back in stock?

好吧，當然。為什麼不籌募廣告費呢？我以為你想要花——你想要花更多。我得到了銷售額的百分比，但銷售額下降了很多。因此，坦率地說，今年的收益“並不重要”，因為這是重建，所以我只是想嘗試保持在消費者面前。一旦庫存恢復，為什麼不在下半年提高廣告投放量？

Lauren, we had all of those debates to see and prioritize having the right level of spending. And that's exactly the exercise that we undertook. And we think what we have in combination with innovation, with the merchandising spend is the right level, if there's any change to that based off of what we see in the marketplace, we absolutely will make adjustments prioritizing the health of our brands and ensuring that we're in front of our consumer but we feel good about that 11%. It still is slightly higher than it was last year, if you just look at absolute dollars as well. And of course, we're driving our team to try to get as much efficiency impact as they possibly can on that spend as well. But we think it's the right level. And again, as we always do, we will prioritize that. And if there's any adjustment needed based off of the path forward as we rebuild, we will make that, but feel very confident where we are right now.

勞倫，我們進行了所有這些辯論，以了解並優先考慮適當的支出水平。這正是我們所做的練習。我們認為，我們與創新、商品支出相結合的水平是正確的，如果根據我們在市場上看到的情況發生任何變化，我們絕對會做出調整，優先考慮我們品牌的健康，並確保我們站在消費者的前面，但我們對這11% 感到滿意。如果你只看絕對美元的話，它仍然比去年略高。當然，我們正在推動我們的團隊在支出上盡可能地提高效率。但我們認為這是正確的水平。一如既往，我們將優先考慮這一點。如果我們重建過程中的前進道路需要任何調整，我們會做出調整，但對我們現在的處境非常有信心。

And our next question will come from Chris Carey with Wells Fargo.

我們的下一個問題將來自富國銀行的克里斯凱裡。

So a couple of quick questions. Number one, are there specific categories where you feel like it will be more challenging to rebuild your shelf than others, should we be thinking about this on a total portfolio basis? Or are there nuances between your various businesses?

有幾個簡單的問題。第一，您是否認為在某些特定類別中重建貨架比其他類別更具挑戰性，我們是否應該在整體投資組合的基礎上考慮這個問題？或者您的不同業務之間是否存在細微差別？

Over the long term, Chris, no. We feel confident across all of our categories that we'll be able to rebuild distribution, return to merchandising and, of course, return to the shares that we were before and grow from there. In the short term, though, there are some nuances, and you'll see recovery faster in some businesses than others. And that has to do with the rate of turn from a consumer perspective. So some of our items turn incredibly quickly, and they're heavy and bulky. And so we saw inventories depleted faster in those categories, for example, and those will take a bit longer to restore. And then some of our other categories where the turns are slower. We've had better inventory positions up into this point and the rebuild will be faster. And then some of it has to do with the complexity.

從長遠來看，克里斯，不會。我們對所有類別都充滿信心，我們將能夠重建分銷，回歸商品銷售，當然，回歸到我們之前的份額並從此增長。不過，從短期來看，存在一些細微差別，您會發現某些企業的復甦速度比其他企業更快。從消費者的角度來看，這與週轉率有關。因此，我們的一些物品轉得非常快，而且又重又笨重。例如，我們看到這些類別的庫存消耗得更快，而這些類別需要更長的時間才能恢復。然後是我們其他一些類別的轉彎速度較慢。到目前為止，我們的庫存狀況已經更好，重建速度也會更快。其中一些與複雜性有關。

So for example, Burt's Bees was more significantly impacted because those orders are highly complex. And in a manual environment that took more touches for us to get Burt's shipments out. And so that's 1 we're focused on rebuilding as quickly as we can given that was more impacted than some of our other businesses. And that's exactly the work we're doing right now and prioritizing that with retailers so that we have Burt's holiday merchandising, cold and flu, and we restore inventories in the most critical items that we have. And we're prioritizing that by retailer, by part of the country, by merchandising events. But over the long term, we have full confidence across all of our categories that we'll be able to restore inventory and distribution.

例如，Burt's Bees 受到的影響更大，因為這些訂單非常複雜。在手動環境中，我們需要進行更多操作才能將伯特的貨物運出。因此，考慮到這比我們的其他一些業務受到的影響更大，我們將專注於盡快重建。這正是我們現在正在做的工作，並優先與零售商合作，以便我們擁有伯特的假日商品、感冒和流感產品，並恢復我們擁有的最關鍵商品的庫存。我們正在按照零售商、國家的部分地區、推銷活動來優先考慮這一點。但從長遠來看，我們對所有類別都充滿信心，我們將能夠恢復庫存和分銷。

One quick follow-up. I think there are some questions around trying to understand if there's any incremental costs associated with this maybe over the medium term, whether there's a step-up in merchandising in the back half or any other costs on top of that. I guess what I'm hearing is there are not, right? So you don't feel the need to invest more into digital infrastructure to protect against such things, you don't feel like you need to accelerate merchandising spending in the back half of the year to perhaps manage the retailers to give you more shelf space. Am I reading that correctly? It's more you lost the shelf now you're going to come back on, but there's no kind of incremental cost that are going to take time to fade away?

一項快速跟進。我認為存在一些問題，試圖了解中期內是否會產生與此相關的增量成本，後半段的銷售是否會增加，或除此之外的任何其他成本。我想我聽到的是沒有，對吧？因此，您不覺得需要在數位基礎設施上投入更多資金來防範這類事情，您不覺得需要在下半年加速商品支出來管理零售商，為您提供更多的貨架空間。我讀得正確嗎？更重要的是，你失去了貨架，現在你要回來了，但沒有任何增量成本需要時間才能消失？

Sure, Chris. First, and clearly, we had incremental costs in Q1 associated with this as we dealt with the cyber-attack itself and the systems issues that we needed to overcome and build. So there was an incremental cost there. Second, on the marketplace piece, we felt like we put a plan in place that took into account what we thought was going to be a more challenging environment. And that plan works very well for us in this environment of rebuilding as well. So we think we have the right tools in place. We believe, again, we have the right level of advertising and sales promotion, promotional dollars invested in that -- on the recovery.

當然，克里斯。首先，很明顯，我們在第一季增加了與此相關的成本，因為我們處理網路攻擊本身以及我們需要克服和建構的系統問題。所以那裡存在著增量成本。其次，在市場方面，我們覺得我們制定了一個計劃，考慮到我們認為將是一個更具挑戰性的環境。在當前的重建環境中，該計劃對我們來說也非常有效。所以我們認為我們擁有合適的工具。我們再次相信，我們在廣告和促銷方面投入了適當水平的促銷資金，以促進經濟復甦。

I would note 1 of the things that we're looking at because we remain deeply committed to our strategic priorities over the long term, including our digital transformation but we are so laser-focused on the inventory rebuild. We have work to do to see how we sequence that out over the future. And if there are any implications or shifts in timing in that, but we're not prepared to talk about that in detail today. Just know that continues to be of the highest importance to our strategy. We're deeply committed to it, and we'll be working out what that means in terms of timing and any implications over the coming quarters.

我想指出我們正在關注的一件事，因為我們仍然堅定地致力於我們的長期戰略重點，包括我們的數位轉型，但我們非常專注於庫存重建。我們還有很多工作要做，看看未來如何排序。如果其中有任何影響或時間變化，但我們今天不准備詳細討論。只要知道這對我們的戰略仍然是最重要的。我們堅定地致力於這一目標，我們將在未來幾個季度的時間和影響方面弄清楚這意味著什麼。

(Operator Instructions) And our next question will come from Andrea Teixeira with JPMorgan.

（操作員說明）我們的下一個問題將來自摩根大通的 Andrea Teixeira。

So I wanted to go back, sorry, the shipment consumption but tackle it in a different way. So you think that like if you think about units, right, the categories that you compete in, would you say a positive in volumes like in the low single digits, if you -- if my math is correct. And if that's the case, what you're saying is that, yes, the mid- to high single digit given pricing is phasing off a bit and building off. You're saying it might take not 1 quarter, it might take 1 or 2 quarters and some unfortunate like losses that you had in market share or the volume that, that consumer went and couldn't find your product, it's not that they are going to buy 2 of them when they got into the store, right? Those lost sales are the lost sales. So is that the way we should be thinking?

所以我想回去，抱歉，貨運消耗，但以不同的方式解決它。所以你認為，如果你考慮單位，對吧，你競爭的類別，你會說數量上是正面的，例如低個位數，如果你——如果我的數學是正確的。如果是這樣的話，你的意思是，是的，中高個位數的定價正在逐步減少並逐漸減少。你說這可能不需要1 個季度，可能需要1 或2 個季度，還有一些不幸的事情，比如你的市場份額或數量的損失，消費者去了卻找不到你的產品，但這並不是說他們是進店後會買2個吧？那些損失的銷售就是損失的銷售。那我們應該這樣思考嗎？

And then related to that, in a way, a second part of the question is that, is there any way you can quantify, like, if there is any -- how you -- as you get back to shelf, are you getting back that consumer that may have experimented because they couldn't find your product and regaining that consumer back? And what are the tactics that you're using to regain that consumer?

然後與此相關的是，在某種程度上，問題的第二部分是，有沒有什麼方法可以量化，例如，如果有的話——你如何——當你回到貨架時，你會回來嗎？那些可能因為找不到您的產品而嘗試過的消費者並重新獲得該消費者？您正在使用哪些策略來重新贏得該消費者？

Sure. Let me -- I'll start with the first part of your question. So maybe if we step back and look at what happened over Q1 and what we anticipate is happening over Q2 and beyond. The big picture is that when this first happens and we move to manual operations, which meant there was a period of time we were shipping anything for a very short period of time. And then we began manual operations and we were shipping at a lower rate. We still had inventory in the system for a number of weeks that allow consumers to have no visibility to this whatsoever. They went to the shelf and they had, for the most part, a normal experience and they were buying Clorox products.

當然。讓我——我將從你問題的第一部分開始。因此，也許我們退後一步，看看第一季發生的情況以及我們預計第二季及以後會發生的情況。總體情況是，當這種情況第一次發生時，我們轉向手動操作，這意味著有一段時間我們在很短的時間內運送任何東西。然後我們開始手動操作，我們的運輸速度較低。我們的系統中仍有數週的庫存，使消費者無法看到這一點。他們走到貨架前，在很大程度上獲得了正常的體驗，他們購買了 Clorox 產品。

And then over time, depending on the item and category and depending on the inventory that a retailer had and how much we could get to a particular category or a retailer in the manual operations, consumers began to see out-of-stocks. And there's a number of behaviors that happen when they experience that. One can be they delay their purchase. They don't find their Clorox product and they delay. The second thing is they really need the item in that category, and so they purchase a competitive product. And that varies across, again, different categories and depending on where consumer inventories were.

然後隨著時間的推移，根據商品和類別以及零售商的庫存以及我們在手動操作中可以向特定類別或零售商獲得的庫存量，消費者開始看到缺貨。當他們經歷這種情況時，就會發生很多行為。其中之一可能是他們推遲購買。他們找不到 Clorox 產品，於是就拖延了時間。第二件事是他們確實需要該類別的產品，因此他們購買有競爭力的產品。同樣，不同類別的情況也有所不同，並且取決於消費者庫存的位置。

What that led to, though, is if you look at kind of what we had in Q1, about half of that downside was more than half was the bleed down of customer inventories. And then the rest of that we look at is lost sales. And then as we're rebuilding that inventory back up, you still have lost sales in Q2 at the beginning because we are not fully back. And so that same dynamic happens with the consumer when they go to the shelf. And as we rebuild inventories, we would expect as people who have delayed that purchase cycle or, frankly, haven't even had a purchase cycle yet come back that they'll see our items and continue to buy.

然而，這導致的結果是，如果你看看我們在第一季的情況，你會發現大約一半的負面影響是客戶庫存的減少。然後我們關注的其餘部分是銷售損失。然後，當我們重建庫存備份時，您在第二季一開始仍然損失了銷售額，因為我們還沒有完全恢復。因此，當消費者走向貨架時，同樣的動態也會發生在他們身上。當我們重建庫存時，我們預計那些推遲了購買週期的人，或者坦率地說，甚至還沒有購買週期的人回來後會看到我們的商品並繼續購買。

And those that have switched to a competitive product, we have strong confidence given the superior value and the trust people have in our brands that once we bring those items back, they will return to that. And of course, we'll support that with all of the things that we know how to do really well. Merchandising that reminds them of the benefits of our products at key pulse periods. It is why we are absolutely laser-focused on things like getting cold and flu merchandising, which we begin to ship later this month and ensuring that we have that and people that are looking for Clorox disinfecting products at that time, we want to make sure that we're not disappointing them. We will do that through innovation and giving them new and increased benefits and of course, speaking to them in our strong marketing communications, where we talk about the benefits of our product and the value they offer to consumers.

對於那些已經轉向有競爭力的產品的人，鑑於人們對我們品牌的卓越價值和信任，我們對此充滿信心，一旦我們將這些產品帶回來，他們就會再次使用。當然，我們會用我們知道如何做好的所有事情來支持這一點。行銷活動提醒他們我們產品在關鍵脈動時期的優勢。這就是為什麼我們絕對專注於感冒和流感商品等產品，我們將在本月晚些時候開始發貨，並確保我們擁有這些商品，並且當時正在尋找 Clorox 消毒產品的人們，我們希望確保我們沒有讓他們失望。我們將透過創新來實現這一目標，並為他們提供新的和更多的好處，當然，我們也會透過強有力的行銷傳播與他們交談，談論我們產品的好處以及它們為消費者提供的價值。

And we have strong confidence based off of a number of things in the past, COVID being one, where there was unprecedented demand and we couldn't fully need it. And we were able to, as we restore supply, consumers came back to our items even though they didn't find us on shelf in previous shopping trips that they had. So we're going to employ all the regular tactics that we have under our tool back. We're laser-focused on doing that.

基於過去的許多事情，我們有很強的信心，新冠疫情就是其中之一，當時的需求是空前的，但我們不能完全需要它。當我們恢復供應時，我們能夠讓消費者重新購買我們的商品，即使他們在先前的購物之旅中沒有在貨架上找到我們的商品。因此，我們將採用我們工具背後的所有常規策略。我們正全神貫注地致力於做到這一點。

And then as you think about that consumer coming back, if you look at past history, just like I said with COVID or for example, when we were out of the market in Pine-Sol for a while, as we came back, those tactics worked very well to restore share, maybe Wipes, maybe the best example, we lost 20 share points during the time of the height of the pandemic due to inability to meet that extraordinary demand.

然後，當你考慮消費者回來時，如果你回顧過去的歷史，就像我在新冠疫情中所說的那樣，或者例如，當我們在Pine-Sol 市場退出一段時間後，當我們回來時，這些策略恢復市場份額的效果非常好，也許是濕紙巾，也許是最好的例子，在疫情最嚴重的時候，由於無法滿足這種非凡的需求，我們失去了 20 個份額點。

And once we got our distribution back, which we did, we were able to regain that and then even more. People trusted our brand, and it's what they wanted. And so we have full confidence we'll be able to do that given the strength of our portfolio, the superior value of our brands and our continued focus on investments.

一旦我們收回了我們的分配，我們就做到了，我們就能夠重新獲得它，甚至更多。人們信任我們的品牌，這就是他們想要的。因此，鑑於我們產品組合的實力、品牌的卓越價值以及我們對投資的持續關注，我們完全有信心能夠做到這一點。

What I would say is it's all about the pace. We can't completely control the pace of getting back in full distribution, but that's what we are absolutely laser-focused on. Our retailers have the same goal to get us fully back in and that's how we're really thinking about it. It is ensuring we get products back on the shelf, we get back to in market fundamentals and then, of course, doing everything we can to support consumers and what we think is going to be a tougher back half for them just as you look, as Kevin talked about from an economic perspective.

我想說的是，一切都與節奏有關。我們無法完全控制恢復全面發行的速度，但這正是我們絕對關注的重點。我們的零售商有同樣的目標，讓我們完全重返市場，這就是我們真正的想法。它確保我們讓產品重新上架，我們回到市場基本面，然後，當然，盡我們所能來支持消費者，我們認為對他們來說，正如你所看到的，這將是一個更艱難的後半部分，正如凱文從經濟角度談到的。

Your next question will come from Olivia Tong with Raymond James.

您的下一個問題將由 Olivia Tong 和 Raymond James 提出。

As you think about sort of rebuilding inventory and market share, how do you ensure that this doesn't impact your ability to stay on pace on innovation and then eventually, your ability to get back to the gross margin recovery path because there's obviously -- you're not quite back there yet. You're still working on that. How is it that you can stay on patient innovation with all the disruption that's happened in the business and potentially some need to rejigger the marketing, promotional dollars, et cetera, in the second half of the year?

當您考慮重建庫存和市場份額時，如何確保這不會影響您保持創新步伐的能力，以及最終恢復毛利率恢復路徑的能力，因為顯然 -您還沒有完全回到那裡。你還在努力。在下半年業務發生混亂，可能需要重新調整行銷、促銷資金等的情況下，您如何能夠保持耐心創新？

Yes. Olivia, it comes back to what we've spoken about before and continues to be of critical importance to us. We are deeply committed to our strategy, and that includes continuing to drive our top line momentum while rebuilding margin and balancing the pace of those 2 things. And that continues to be the center of the focus as we make decisions recovering from the cyber-attack and all the choices that we'll have over the coming quarters to ensure that we're balancing that for consumers.

是的。奧利維亞，這又回到了我們之前討論過的問題，並且仍然對我們至關重要。我們堅定地致力於我們的策略，其中包括繼續推動我們的營收勢頭，同時重建利潤率並平衡這兩件事的節奏。當我們做出從網路攻擊中恢復的決策以及我們在未來幾季將擁有的所有選擇時，這仍然是焦點的中心，以確保我們為消費者平衡這一點。

So when this first happened, of course, job #1 was to ensure that we had contained the incident, we believe we have. Job #2 was to ensure that we could return operationally, which we did. And of course, we transitioned back to automated and now laser-focused on restoring supply. But at the same time, we knew it was critically important that we could not let go of the long term. And so I mentioned just a little bit earlier that we had taken a group of resources that did not need to be focused on the immediate issue at hand and we ask them to do everything in their power to preserve innovation in the back half. And that was while systems were down. And so they put together a set of plans to do that. And the good news is, we do have the ability to continue with our innovation plans in the back half because we did that.

因此，當這種情況第一次發生時，當然，首要任務是確保我們已經控制住了事件，我們相信我們已經做到了。第二項工作是確保我們能夠正常返回，我們做到了。當然，我們又恢復了自動化，現在專注於恢復供應。但同時，我們知道至關重要的是，我們不能放棄長期發展。因此，我剛才提到，我們已經採取了一組不需要專注於眼前問題的資源，我們要求他們盡一切努力來保持後半部分的創新。那是在系統癱瘓的時候。因此他們制定了一套計劃來做到這一點。好消息是，我們確實有能力在下半年繼續我們的創新計劃，因為我們做到了。

And what we believe is we just have to continue to balance those 2 things. We have to balance the short term and laser focus on restoring but we have to make sure that we have that innovation. And that's how we're approaching this internally. We are trying very hard to ensure that the resources focused on the short term are not distracted and the same with the resources on the long term. And if you recall, Olivia, we did this during COVID when the same issue occurred. Demand was so high. We had to ramp up supply. We were dealing with shortages on all of raw materials but we also did the same thing where we put resources aside for innovation to ensure that we preserve that long term.

我們相信我們只需要繼續平衡這兩件事。我們必須在短期和專注於恢復之間取得平衡，但我們必須確保我們擁有這種創新。這就是我們內部處理這個問題的方式。我們正在非常努力地確保短期資源不被分散，並且與長期資源保持一致。奧莉維亞，如果你還記得的話，我們在新冠疫情期間也這樣做了，當時也發生了同樣的問題。需求如此之高。我們必須增加供應。我們正在應對所有原材料的短缺問題，但我們也做了同樣的事情，我們將資源用於創新，以確保我們能夠長期保持這種狀態。

So that's what we're going to continue to do as we make choices moving forward is we want to balance short and long term. We want to balance top line momentum with rebuilding margin, and we have every confidence that we can do both of those based off of the plans that we've outlined for fiscal year '24 and beyond.

因此，當我們做出選擇時，我們將繼續做的就是我們希望平衡短期和長期。我們希望平衡營收動能與重建利潤率，並且我們完全有信心能夠根據我們為 24 財年及以後製定的計劃來實現這兩點。

Got it. And then just secondly, given the cyber-attacks, and I imagine you took another look at your capabilities and IT infrastructure, obviously in the middle of a program right now. Have you revisited the plan? Do you think there are more needs to be done? And if so, could that potentially extend the project further out?

知道了。其次，考慮到網路攻擊，我想您會再次審視自己的能力和 IT 基礎設施，顯然現在正處於計劃之中。你重新審視計劃了嗎？您認為還需要做更多的事情嗎？如果是這樣，是否有可能進一步擴展該專案？

Yes. So 2 things. Prior to the cyber-attack, we had a number of particular cybersecurity measures in place, including endpoint detection and response tools across our enterprise. And as we experience this, we continue as we bring our systems online to enhance those and taking a series is to further strengthen our security controls. So that's 1 bucket.

是的。所以有兩件事。在網路攻擊之前，我們採取了許多特定的網路安全措施，包括整個企業的端點偵測和回應工具。當我們經歷這一點時，我們繼續將我們的系統上線以增強這些系統，並採取一系列措施來進一步加強我們的安全控制。所以這是 1 桶。

Second, of course, is we are in the middle of our digital transformation, as you note, and we continue to be deeply committed to that digital transformation. We think we have taken into account the broad set of tools and capabilities that we need to put in place to be more effective and efficient as part of that digital transformation. And we think more strongly than ever that is an important to our business and a critical priority to do that. What we are doing now is going through that program and ensuring any learnings we have over the last couple of months we're integrating into it. And then we're taking that into account as we bring the ERP online in the future and as we bring the rest of the tools in place.

其次，正如您所指出的，我們正處於數位轉型之中，我們將繼續堅定地致力於數位轉型。我們認為，我們已經考慮到了我們需要部署的廣泛工具和功能，以便在數位轉型過程中更加有效和高效。我們比以往任何時候都更強烈地認為這對我們的業務很重要，也是實現這一目標的關鍵優先事項。我們現在正在做的是完成該計劃，並確保我們將過去幾個月所學到的知識融入其中。然後，當我們將來上線 ERP 以及部署其餘工具時，我們會考慮到這一點。

But what I would say at this point is, it's too early to say if there will be any tactical changes that we'll make and how we'll sequence and time that. But what I can reaffirm is our deep commitment to it, how critical we think it is to the company. And it is just more reaffirmed given what we've experienced over the last few months as we've restarted our systems.

但我現在要說的是，現在說我們是否會做出任何戰術改變以及我們將如何安排和安排時間還為時過早。但我可以重申的是我們對此的堅定承諾，以及我們認為它對公司的重要性。考慮到我們在過去幾個月重新啟動系統時所經歷的情況，這一點更加得到了證實。

Your next question will come from Javier Escalante with Evercore ISI.

您的下一個問題將來自 Evercore ISI 的 Javier Escalante。

I have a question, I guess, is a CFO question. And it has to do with the business planning, forecasting and reporting that you had. How often do you communicate with the segments reporting to you? Because this seems to be kind of like a very simple business, mostly U.S.-driven. And I was surprised by the fact that it took over a month to know that the incident was material.

我想，我有一個問題是 CFO 的問題。它與您的業務規劃、預測和報告有關。您多久與向您報告的部門溝通一次？因為這似乎是一項非常簡單的業務，主要是由美國驅動的。令我驚訝的是，我花了一個多月的時間才知道這起事件的嚴重性。

Yes, Javier. What I would say is, I think you saw we communicated in 1 of our previous 8-K that we thought this was going to have a material impact on our results. And so we try to communicate that fairly quickly. But then the next step for us was to determine the actual financial impact and so that's what we communicated in our preannouncement because we thought it was important, given the last outlook we had was what has put out there in August prior to the event. We did not want to wait until our earnings call today to report results. So as soon as we had a fairly good handle on the financial impact we communicated that publicly. Yes, you have to keep in mind the reality is we're working in an environment that had limited systems capabilities. So it was more manual effort. So that takes a little bit longer. But importantly, we thought we want to get out there and provide that information as soon as we could.

是的，哈維爾。我想說的是，我想您已經看到我們在之前的 8-K 中的一次交流中表示，我們認為這將對我們的結果產生重大影響。因此，我們嘗試相當快地傳達這一點。但我們的下一步是確定實際的財務影響，這就是我們在預告中傳達的內容，因為我們認為這很重要，因為我們最後的展望是在活動之前八月份發布的。我們不想等到今天的財報電話會議才報告結果。因此，一旦我們對財務影響有了相當好的把握，我們就會公開傳達這一點。是的，您必須記住，現實是我們正在一個系統功能有限的環境中工作。所以這需要更多的手動工作。所以這需要更長的時間。但重要的是，我們認為我們希望盡快走出去並提供這些資訊。

But you have to really work through this, Javier, because what you're really trying to figure out is when you can restructure systems, when you can start rebuilding inventory. And depending on that time line, that will impact the financial performance. So you have to let this play out a bit as we're going through the evaluation of the cyber event itself, developing recovery plan and then determining the financial indications of that recovery plan. So that was all the work that went on. And then as a result of that, we came out with a pre-announcement about a month ago.

但哈維爾，你必須真正解決這個問題，因為你真正想要弄清楚的是何時可以重組系統，何時可以開始重建庫存。根據該時間線，這將影響財務表現。因此，當我們評估網路事件本身、制定恢復計劃，然後確定該恢復計劃的財務指標時，您必須讓這一點發揮作用。這就是所有正在進行的工作。因此，我們大約一個月前發布了預告。

Sorry, Javier, I was just going to build on Kevin's response to your question. The other thing I would just note is this is actually a fairly complex business. We compete in 13 categories in over 100 countries around the world. And we're aggregating all that information in a manual environment to understand the impacts. In addition to that, we are working with all of our retailers and supplier partners who then have to transition to a manual process with us and getting our arms around exactly the implications and timing. So I just wanted to note, it is actually a rather complex business and one where -- when we are in a manual environment, you could understand how difficult it would be to have full visibility to all parts of that. And as Kevin said, our commitment was to transparency and giving information as we had it, which you saw in those series of 8-Ks.

抱歉，哈維爾，我只是想以凱文對你的問題的回答為基礎。我要指出的另一件事是，這實際上是一項相當複雜的業務。我們在全球 100 多個國家參加 13 個類別的比賽。我們正在手動環境中匯總所有這些信息，以了解影響。除此之外，我們正在與所有零售商和供應商合作夥伴合作，他們必須與我們一起過渡到手動流程，並準確掌握影響和時間表。所以我只是想指出，這實際上是一項相當複雜的業務，當我們處於手動環境時，您可以理解全面了解其中的所有部分是多麼困難。正如 Kevin 所說，我們的承諾是保持透明度並提供現有信息，您在 8-K 系列中看到了這一點。

I appreciate that. Now my question was, I used to work for 1 corporation, a large 1 global. And I remember that they used to close the books every month and we re-forecast every month. So basically, that was the question I was asking. So how frequent does the CFO office re-forecast the business plan on a regular basis, understanding that there was a cyber event, which is very unfortunate.

我很感激。現在我的問題是，我曾經為一家公司工作，一家大型跨國公司。我記得他們過去每個月都會結帳，我們每個月都會重新預測。基本上，這就是我問的問題。那麼，財務長辦公室定期重新預測業務計畫的頻率是多少，因為他們知道發生了網路事件，這是非常不幸的。

Yes, Javier. Let me separate a normal environment versus the cyber environment because I was asked much different. So we -- similar to -- it sounds like the experience we close our books every month, we sell our results every month and we forecast on a regular basis. That's a cadence of anywhere from 5 to 8 forecasts a year. So we have very frequent updates in a normal environment. But as Linda mentioned, in this last period because of the limitation of automated systems, [in vary] manual environment. So it has less visibility to our financial performance while our systems were down. And then as we brought those systems back up, we actually communicated as soon as we had a handle on what we thought the financial impact was.

是的，哈維爾。讓我將正常環境與網路環境分開，因為我被問到的問題有很多不同。所以我們——類似於——這聽起來像是我們每個月結帳、每個月出售我們的結果並定期進行預測的經歷。這是每年 5 到 8 次預測的節奏。所以我們在正常環境下的更新是非常頻繁的。但正如 Linda 所提到的，在最後一個時期，由於自動化系統的限制，[在不同的]手動環境中。因此，當我們的系統出現故障時，它對我們的財務績效的可見度較低。然後，當我們恢復這些系統時，一旦我們掌握了我們認為的財務影響，我們實際上就進行了溝通。

And right now you have full visibility over your P&L, all the legal entities, all that.

現在，您可以完全了解您的損益表、所有法律實體等等。

We do. We've started up our systems, we're back to an automated environment that includes our ERP system. So yes, we have full visibility as we move forward now.

我們的確是。我們已經啟動了我們的系統，我們回到了包括 ERP 系統在內的自動化環境。所以，是的，我們現在前進時擁有完全的可見性。

This concludes our question-and-answer session. Ms. Rendle, I would now like to turn the program back to you.

我們的問答環節到此結束。倫德爾女士，我現在想把程式轉回給您。

Thank you, everyone. We look forward to speaking with you again on our next call. And until then, please stay well.

謝謝大家。我們期待在下次通話中再次與您交談。在那之前，請保持健康。

And this concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。