科蒂集團 (COTY) 2024 Q1 法說會逐字稿

Good morning and good afternoon, everyone. My name is Todd, and I'll be your conference operator today. At this time, I would like to welcome everyone to Coty's First Quarter Fiscal 2024 Question-and-Answer Conference Call.

大家早安，下午好。我叫托德，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加科蒂 2024 財年第一季問答電話會議。

As a reminder, this conference call is being recorded today, November 8, 2023 at 7:30 a.m. Eastern Time or 1:30 p.m. Central European Time. Please note that on November 7 at approximately 4:30 p.m. Eastern Time or 10:30 p.m. Central European Time, Coty issued a press release and prepared remarks webcast, which can be found on its Investor Relations website. On today's call are Sue Nabi, Chief Executive Officer; and Laurent Mercier, Chief Financial Officer.

謹此提醒，本次電話會議將於東部時間 2023 年 11 月 8 日上午 7:30 或美國東部時間下午 1:30 錄製。中歐時間。請注意，11 月 7 日下午 4:30 左右。東部時間或晚上 10:30歐洲中部時間，科蒂發布了一份新聞稿並準備了網路廣播，您可以在其投資者關係網站上找到該內容。出席今天電話會議的有執行長 Sue Nabi；和財務長 Laurent Mercier。

I would like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earnings release and reports filed with the SEC, where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release.

我想提醒您，今天的許多評論可能包含前瞻性陳述。請參閱科蒂的收益發布和向美國證券交易委員會提交的報告，其中該公司列出了可能導致實際結果與這些前瞻性陳述有重大差異的因素。此外，除非另有說明，對科蒂財務表現和科蒂預期的討論反映了該公司新聞稿的非公認會計準則財務指標部分中指定的某些調整。

With that, we will now open the line for questions.

現在，我們將開通提問熱線。

(Operator Instructions) Our first question will come from Nik Modi with RBC Capital Markets.

（操作員說明）我們的第一個問題將來自加拿大皇家銀行資本市場的尼克莫迪。

I actually had a bigger picture question. Sue, when we recently met in person a few weeks ago, you were very excited about the innovation program at Coty. And I wanted to ask a more broader question about skin care, and how you think about skin care holistically, in a sense that topicals is one thing, but what about ingestibles and injectables? I'm just curious on philosophically how you think about the category going forward.

我實際上有一個更大的問題。蘇，幾週前我們最近見面時，您對科蒂的創新計劃感到非常興奮。我想問一個關於皮膚護理的更廣泛的問題，以及您如何從整體上看待皮膚護理，從某種意義上說，外用藥是一回事，但是攝入劑和注射劑呢？我只是好奇你從哲學上如何看待這個類別的未來。

Okay. Nik, thank you for your question. Indeed, that's, as you say, the bigger and the broader picture. I think what we have shared with all you guys several times is that the skin care market, and by the way, the beauty market in generally speaking, is going in the direction of the medicated beauty. And this is something that we see very, very strongly. And that's the reason why we have decided to reposition some of our brands quite strongly on this area. If you allow me, may I remind everyone that we just did the launch behind Orveda Skin Care of the first serum that uses technologies, inspired by the medical world that we call [senolytics], which is the first time a skin care brand is using this kind of technologies in a topical cream, as you say it.

好的。尼克，謝謝你的問題。事實上，正如你所說，這是更大更廣闊的圖像。我想我們跟大家多次分享過的是，護膚市場，順便說一句，美容市場總體來說，正在往藥妝方向發展。我們非常非常強烈地看到這一點。這就是為什麼我們決定在這一領域重新定位我們的一些品牌。如果你允許的話，我可以提醒大家，我們剛剛在 Orveda Skin Care 背後推出了首款採用技術的精華液，其靈感來自醫學界，我們稱之為 [senolytics]，這是護膚品牌首次使用正如你所說，這種技術應用於外用霜。

On Lancaster, the story that is really resonating very well is the story of using this vectors, liposomes that penetrate deep inside the skin. And this is really what is making the brand resonate with the Chinese consumers. And also on philosophy in the U.S., we've decided that the brand will stand for the brand that's going to bring a bit of wisdom in the craze around dermatologic ingredients.

在蘭卡斯特，真正引起共鳴的故事是使用這種載體的故事，即滲透到皮膚深處的脂質體。這正是該品牌與中國消費者產生共鳴的原因。同樣在美國的哲學方面，我們決定該品牌將代表一個能夠為皮膚科成分的熱潮帶來一點智慧的品牌。

So as you hear from my words, it's all about a kind of medicated beauty. In the beauty world, we are using ingredients and formulations that are acting on the upper layer of the skin, and we are not allowed to go lower. So if you think about injectables, you clearly see this booming with other companies selling products that are going to [revive] the muscles without quoting any brand, products that are all about injecting [hyaluronic] acid inside the skin, vitamins or sometimes medical devices allowing a faster penetration of the active. So you're right. This is the direction that the overall market is going into, but we have some limitations when it comes to selling skin care from a beauty brand that does not require any kind of long time testing, like a medication or a drug would require. But that's more or less the direction we are seeing.

所以你從我的話中聽出來，這都是一種藥用美容。在美容界，我們使用的成分和配方是作用在皮膚上層的，不允許再往下層發展。因此，如果您想到注射劑，您會清楚地看到這種蓬勃發展，其他公司銷售的產品將[恢復]肌肉，而不引用任何品牌，這些產品都是關於在皮膚內註射[透明質酸]、維生素或有時是醫療設備的產品允許​​活性物質更快滲透。所以你是對的。這是整個市場正在走向的方向，但在銷售美容品牌的護膚品時，我們有一些限制，這些品牌不需要任何長時間的測試，就像藥物或藥物需要的那樣。但這或多或少就是我們所看到的方向。

Ingestibles. I mean ingestibles is like male skin care. It has been a kind of -- everyone says this is the year of ingestibles, and the year after, nothing has happened. So again, there, my gut feeling is that this category needs a bit of strong R&D because a lot of people believe that what you are going to ingest is going to be digested by your stomach enzymes. And at the end of the day, what's the difference between eating good food and having ingestible. So that's also something we hear from consumers, that ingestibles need to demonstrate their ability to bring to the right place, the right ingredients, knowing that they come into your digestive system.

可攝入的。我的意思是，攝取品就像男性皮膚護理一樣。這是一種——每個人都說今年是可攝取的一年，而後一年，什麼事也沒發生。再說一次，我的直覺是這個類別需要一些強而有力的研發，因為很多人相信你要攝取的東西會被你的胃酵素消化。歸根究底，吃好的食物和攝取食物有什麼不同。所以這也是我們從消費者那裡聽到的，攝取食品需要證明它們有能力將正確的成分、正確的成分帶到正確的地方，並且知道它們會進入您的消化系統。

So that's the whole -- the big picture I could share with you. I hope I'm answering part of your question.

這就是我可以與您分享的全部內容。我希望我能回答你的部分問題。

Our next question will come from Oliver Chen with TD Cowen.

我們的下一個問題將由 Oliver Chen 和 TD Cowen 提出。

Sue and Laurent, you made a lot of great progress with your digital marketing, and the studio we toured was remarkable. What's ahead in terms of how you're thinking about a digital center of excellence, and key principles and platform occasion as you'll continue to build this capability across your portfolio? Also, as we look forward, what are your thoughts on pricing in the environment? We're seeing a lot of cross currents in the consumer in many regions. However, you've been on a really good pace with all the fragrance momentum.

Sue 和 Laurent，你們在數位行銷方面取得了很大的進步，我們參觀的工作室也非常出色。當您繼續在整個產品組合中建立這種能力時，您對數位卓越中心的看法以及關鍵原則和平台場合有何展望？另外，當我們展望未來時，您對環境定價有何看法？我們看到許多地區的消費者存在著許多分歧。然而，您在所有香水動力方面的步伐都非常好。

Oliver, thank you for your question. So again, on the digital centers of excellence, you're totally right. We started, since 2020, to really create a center of excellence that's based in Paris. That's the global center of excellence, really in a kind of catch-up sales because the company was a bit behind its competitors in this area 3 years ago. And this, we made it happen in Paris. And now it's exactly the right time to have these centers of excellence, benefiting from the global know-how, being created in key regions around the world, namely the U.S. or China to take 2 examples where the digitalization of the beauty world is quite advanced and fast paced. So this is exactly where we are standing now.

奧利佛，謝謝你的提問。再說一次，關於卓越數位中心，你是完全正確的。自 2020 年以來，我們開始真正創建一個總部位於巴黎的卓越中心。那是全球卓越中心，實際上是一種追趕銷售，因為該公司三年前在這一領域略落後於競爭對手。而這，我們在巴黎實現了。現在正是在全球關鍵地區（即美國或中國）建立這些受益於全球專業知識的卓越中心的最佳時機，以美容界數字化相當先進的兩個例子為例並且節奏快。這正是我們現在所處的位置。

On Consumer Beauty, you know that we are also accelerating in our ability to create locally in the different countries because this can only be local because you need to fit with the culture, you need to fit with the language, you need to fit with a local trend. So we are creating studios, let's call them like this, in the U.S., in U.K. and elsewhere. I think we created something like 15 studios, which are TikTok or YouTube, call them the way you want, studios, where we are creating together or co-creating with influencers' content. And we are also beating the machine. Just to give you an idea, until recently, we were working with a few dozens of influencers behind the key launches of the Consumer Beauty makeup brands.

在消費者美容方面，你知道我們也在加速提高在不同國家本地創造的能力，因為這只能是本地的，因為你需要適應文化，你需要適應語言，你需要適應當地趨勢。所以我們正在美國、英國和其他地方創建工作室，讓我們這樣稱呼它們。我認為我們創建了大約 15 個工作室，即 TikTok 或 YouTube，你可以按照你想要的方式稱呼它們，工作室，我們在那裡一起創作或與有影響力的人共同創作內容。我們也在打敗機器。只是為了提供您一個想法，直到最近，我們仍在與數十位有影響力的人士合作，推出消費美容化妝品品牌的重要產品。

And then recently, we moved to hundreds, and we saw the results immediately, if I take the example of U.K., where we moved from nowhere in terms of EMV and VIT to top 5, top 6 brands, sometimes ahead of best-in-class brands that have been doing this for years and years. And now the objective is to multiply this number by 3 to get above the threshold of the 1,000 influencers reached by our brands.

最近，我們的品牌數量增加到了數百個，我們立即看到了結果，如果我以英國為例，我們在EMV 和VIT 方面從無到有，躋身前5、前6 品牌，有時還領先於最佳品牌－多年來一直這樣做的一流品牌。現在的目標是將這個數字乘以 3，以突破我們品牌影響力達到 1,000 名的門檻。

So this is exactly what's happening in terms of centers of excellence, first built globally in Paris, and now going into different countries, in New York, in London, and in Shanghai, where we are today talking to you from.

這正是卓越中心正在發生的事情，這些卓越中心首先在巴黎建立，現在進入不同的國家，在紐約、倫敦和上海，我們今天在這裡與你們交談。

Laurent, maybe you can take the second part, on the price?

勞倫特，也許你可以看第二部分，關於價格？

Yes, absolutely, on pricing. So indeed, I mean, first of all, just to remind that indeed, we implemented, I mean, several price increase over the last 2 years at a level of mid-single digit. And this price increase, I mean, went very smoothly, and we are very successful. The clear demonstration is what you are seeing is that our volumes keep growing. And definitely, that you are seeing that in Q1, our volumes are growing. So this was really very important in our strategy to make sure that there is no elasticity on volumes. And this is -- and this was the case.

是的，絕對是，關於定價。所以，事實上，我的意思是，首先，只是想提醒一下，事實上，我們在過去兩年中實施了幾次中個位數的價格上漲。我的意思是，這次漲價進行得很順利，我們非常成功。您所看到的清​​楚的證明是我們的銷量不斷增長。當然，您會看到在第一季度，我們的銷量正在成長。因此，這在我們的策略中非常重要，以確保銷售沒有彈性。情況就是如此。

So now looking ahead, of course, we are very conscious that the reason, especially on COGS inflation is starting to softening. So what -- definitely, we are really focusing on mix management. This is definitely the #1 driver to continue to improve our gross margin. And mix management, you are seeing some concrete example, the innovations that we are launching. All of these innovations are really mix accretive, so are really driving the average price up.

因此，現在展望未來，當然，我們非常清楚原因，尤其是銷貨成本通膨開始疲軟。那又怎樣——當然，我們真正關注的是混合管理。這絕對是繼續提高我們毛利率的第一大驅動力。在混合管理方面，您會看到一些具體的例子，即我們正在推出的創新。所有這些創新確實都是混合增值，因此確實推高了平均價格。

Number two, we are opening, and we shared also last time, big stream of SRM, which is strategic revenue management. And it's really an approach where now we have a dedicated teams. It's really to open the value analysis of all the product and really making sure where we can extract some value. So concretely, it's really to review in depth all the promotion policy, the trade terms. In some cases, it can be also about the format. And again, this is really a way for us to improve the average unit price.

第二，我們正在開放，上次我們也分享了SRM的大流，即策略收入管理。這確實是一種方法，現在我們擁有一支專門的團隊。這實際上是對所有產品進行價值分析，並真正確定我們可以在哪裡提取一些價值。那麼具體來說，就是要深入檢視所有的促銷政策、貿易條件。在某些情況下，也可能與格式有關。再說一遍，這確實是我們提高平均單價的一種方式。

And last but not least, we will continue, definitely, to implement some very targeted price increase. I would say, more at a level of low single digit, but definitely, we have this pricing team, pricing office, very expert. And really, we are very granular, and I repeat it every time. So we will continue in a very, very targeted manner.

最後但並非最不重要的一點是，我們肯定會繼續實施一些非常有針對性的價格上漲。我想說，更多的是低個位數的水平，但肯定的是，我們有這個定價團隊、定價辦公室，非常專家。事實上，我們非常細緻，我每次都會重複一遍。因此，我們將繼續以非常非常有針對性的方式進行。

The innovation sounds quite exciting. Best regards.

這項創新聽起來相當令人興奮。此致。

So innovation, of course, is part of the game. So it's definitely part of the mix management. And of course, we are making sure, again, and you have a very concrete example in this Q1, that high quality of the innovations. Also, as you know, there is a shift to higher concentration on Prestige Fragrance mostly, and this is again a way for us to drive the average unit price. So absolutely.

因此，創新當然是遊戲的一部分。所以它絕對是混合管理的一部分。當然，我們再次確保，第一季有一個非常具體的例子，即高品質的創新。此外，如您所知，主要集中在高級香水上，這也是我們推動平均單價的一種方式。絕對是如此。

And on Consumer Beauty, Oliver, you have also the same thing. What is really driving the market is premium innovation, not entry pricing, and that's very important for everyone to hear. And this is the area where we are going to accelerate the pace of innovation. It used to be high single-digit levels required in terms of innovation, and we are more today targeting high high-teens level of innovation in terms of percentage of the net revenues. It's accelerating, but premium innovation is driving the market.

在消費者美容方面，奧利佛，你也有同樣的事情。真正推動市場的是優質創新，而不是入門價格，這對每個人來說都非常重要。這就是我們要加快創新步伐的領域。過去，創新方面的要求是高個位數水平，而今天，我們的目標是在淨收入百分比方面達到高十位數的創新水平。它正在加速，但優質創新正在推動市場。

Our next question will come from Rob Ottenstein with Evercore.

我們的下一個問題將來自 Evercore 的 Rob Ottenstein。

Great. Congratulations on the continued great work. So given that you were in China, I'd be remiss to not ask you what you're seeing on the ground in China and in Hainan, if you're there, both in terms of how the consumer is and the beauty market is recovering, if it is recovering? And then maybe, additional details on your execution, what's going particularly well?

偉大的。恭喜您繼續進行出色的工作。因此，考慮到您在中國，如果您在中國和海南，我不問您在當地看到的情況，那就是我的失職，無論是消費者的情況還是美容市場的情況正在康復，如果正在康復呢？然後，也許，有關您的執行的其他詳細信息，哪些進展特別順利？

Robert, thank you very much for your kind words. So again, you're right, we are in Shanghai. We've been here since a few days, and we'll be here until the end of the week. And indeed, it's very interesting to see how the market is evolving quite fast, I have to say, specifically on the fragrance category. Again, we shared with you that a few years -- months ago, maybe a year ago, we shared with you that we start to see Chinese getting very, very interested in this category. And this is accelerating at an incredible pace, even the tastes are accelerating.

羅伯特，非常感謝你的客氣話。再說一次，你是對的，我們在上海。我們已經在這裡待了幾天了，我們將在這裡待到本週末。事實上，我必須說，看到市場如何快速發展是非常有趣的，特別是在香水類別上。我們再次與您分享，幾年前，幾個月前，也許一年前，我們與您分享，我們開始看到中國人對這一類別變得非常非常感興趣。而這種速度正以令人難以置信的速度加速，甚至連口味也在加速。

To give you a few ideas, we launched Burberry Goddess in this country, a little bit after the rest of the countries, because we thought that the scent of this innovation was really a bold scent, et cetera. And the reception has been outstanding. The line is already, #6 line at Sephora, which is a ranking that we never achieved in this country with any of our fragrances.

為了給你一些想法，我們在這個國家推出了 Burberry Goddess，比其他國家晚了一點，因為我們認為這種創新的香味確實是一種大膽的香味，等等。接待情況非常優異。該系列已經在絲芙蘭排名第六，這是我們在這個國家從未用我們的任何香水達到的排名。

So it's really this fragrance category that's, by the way, growing, and it's growing by 6%. And Coty in the country, this is Beauty Research latest results. It's growing more than 2x faster than this level of the market. And Burberry Goddess is just starting in this country, and we believe it's going to be a game changer. The other element we are seeing is the premiumization of the market. And I would even say, the bigger part of niche fragrances, these fragrances represent almost 1/4 of the market today in China. This is 2.5x bigger than what you see in the rest of the world.

順便說一下，這個香水類別確實在成長，而且增加了 6%。而在國內的Coty，這也是Beauty Research的最新成果。它的成長速度比這個市場水準快兩倍以上。 Burberry Goddess 在這個國家剛剛起步，我們相信它將改變遊戲規則。我們看到的另一個因素是市場的高端化。我甚至會說，小眾香水的大部分，這些香水幾乎佔據了中國當今市場的 1/4。這比您在世界其他地方看到的大 2.5 倍。

So this premiumization, going in the direction of more niche brands, really selling in freestanding stores, and when you enter the boutique, you don't have the impression you are in a store that is selling fragrances. You have the impression that you are visiting a concept store or sometimes a museum. So this is something that is going very, very quickly, and that's the reason why I've been sharing with you how much we are eager to develop this kind of expertise inside the company to understand, of course, how to create winning niche brands, but also to understand the world of retail when you are operating a freestanding store.

因此，這種高端化，朝著更小眾品牌的方向發展，真正在獨立商店中銷售，當你進入精品店時，你不會有你在一家銷售香水的商店的印象。您的印像是您正在參觀概念店，有時甚至是一座博物館。所以這件事進展得非常非常快，這就是為什麼我一直與你們分享我們多麼渴望在公司內部發展這種專業知識，當然，以了解如何創建獲勝的利基品牌，還可以在經營獨立商店時了解零售世界。

We also did the CIIE inauguration 2 days ago. It was a fantastic moment, especially for [Infiniment] Coty Paris, that was not fully disclosed to the Chinese audience. We did a teaser, and what was incredible is to see all these young men and young women entering this booth, where they had a giant flowers that they can put their nose in and smell the fragrances and try to guess the name of the fragrance, how will the bottle look like, et cetera. And the way they welcome this was absolutely outstanding. So we're very, very confident about this line that is going to meet the Chinese consumers.

兩天前我們還舉辦了進博開幕典禮。這是一個美妙的時刻，尤其是對於《無限》科蒂巴黎來說，這一刻並沒有完全向中國觀眾透露。我們做了一個預告片，令人難以置信的是看到所有這些年輕男女進入這個展位，他們有一朵巨大的花，他們可以把鼻子伸進去聞香味，並嘗試猜出香味的名字，瓶子會是什麼樣子等等。他們對此的歡迎方式絕對是出色的。因此，我們對這條產品線能夠滿足中國消費者的需求非常非常有信心。

The other market that's doing very well in China today is makeup. Makeup is growing by 10%. And there, we are growing faster than the makeup market, mainly thanks to Gucci makeup and Burberry makeup. There, it's all about face makeup because, again, the makeup category is skinifying and anything that's a good mix between pigments and skin benefits is clearly what people are looking for on top of the fact that everything has to be long wear.

如今，中國另一個表現優異的市場是化妝品。化妝品增加了 10%。在那裡，我們的成長速度快於彩妝市場，這主要歸功於 Gucci 彩妝和 Burberry 彩妝。在那裡，一切都與臉部彩妝有關，因為彩妝類別是皮膚化的，任何將顏料和皮膚益處完美結合的東西顯然都是人們所尋求的，而且所有東西都必須是持久的。

Last but not least, skin care market, which is the immense majority of the sales. This market is slightly negative in the recent -- most recent period. I think it's not that Chinese are using less skin care. They are probably shifting from some brands to other brands, maybe the level of promotionality that this market reached in the last quarters and years is a kind of maximum. And then there is a kind of -- they are looking for what are the new brands that can speak to their needs without being too promotional, without being too much into this world, or where you buy only if there is a promotion.

最後但並非最不重要的一點是保養品市場，佔銷售額的絕大多數。這個市場在最近一段時間略有負面。我認為並不是中國人使用的護膚品較少。他們可能正在從某些品牌轉向其他品牌，也許這個市場在過去幾個季度和幾年中達到的促銷水平是最大的。還有一種——他們正在尋找哪些新品牌能夠滿足他們的需求，而又不會過度促銷，不會過多地融入這個世界，或者只有在有促銷的情況下才購買。

And there, our brands are doing well, specifically Lancaster, which is the main brand that we have in this country, specifically online, the brand is continuing to see momentum because it's growing month after month. We have started, as you remember, with Ligne Princière. And now we are adding next to Ligne Princière, a focus on sun care because this brand is really seen as the epitome of what is high-end sun care protection is. And we are also adding new innovations that are about to land in the market in January 2024. So that's a bit long, but that's what we saw since a week now in Shanghai.

在那裡，我們的品牌表現良好，特別是蘭卡斯特，這是我們在這個國家擁有的主要品牌，特別是在線品牌，該品牌繼續看到勢頭，因為它在逐月增長。正如您所記得的，我們從 Ligne Princière 開始。現在，我們在 Ligne Princière 旁邊添加了一個專注於防曬的品牌，因為這個品牌確實被視為高端防曬保護的縮影。我們還添加了即將於 2024 年 1 月推出市場的新創新產品。雖然時間有點長，但這就是我們在上海一周以來所看到的情況。

Hainan. We did not go there. I have to say, not this time, but our progression of the day, you've heard it, and you've seen it during the script and the earnings release, is very, very strong, in fact, specifically behind Lancaster, but also behind brands like [Chloé].

海南。我們沒有去那裡。我必須說，不是這一次，但是我們今天的進展，你已經聽到了，你在劇本和收益發布期間也看到了，非常非常強勁，事實上，特別是在蘭開斯特之後，但是也是[ Chloé] 等品牌的幕後推手。

Our next question will come from Filippo Falorni with Citi.

我們的下一個問題將來自花旗銀行的 Filippo Falorni。

So clearly, a very strong start of the fiscal year with 18% like-for-like sales growth. So maybe, Sue, can you comment on like what drove the upside relative to the guidance you provided in September? You mentioned a lot of drivers in your prepared remarks, but maybe, you can rank them in terms of category growth, innovation contribution. And then thinking ahead of your guidance for the first half, it does imply a bit of a slowdown in fiscal Q2 to 4% to 8% like-for-like sales growth. So maybe what is the driver? Was there any pull forward of shipments in Q1 versus Q2? Any color there would be helpful.

很明顯，本財年開局非常強勁，銷售額年增 18%。那麼，Sue，您能否評論一下相對於您 9 月份提供的指導而言，推動上漲的因素是什麼？您在準備好的發言中提到了許多驅動因素，但也許您可以根據品類成長、創新貢獻對它們進行排名。然後提前思考上半年的指導，這確實意味著第二財季的同比銷售成長將放緩，至 4% 至 8%。那麼驅動程式可能是什麼？第一季的出貨量與第二季相比是否有任何提早？任何顏色都會有幫助。

Good morning, Filippo. So in fact, what drove this upgrade of the guidance during the quarter is the fact that the -- number one, the market continues to be very, very strong, 10% of growth of the fragrance market. This is really a fantastic figure on top of 10% in Q1 fiscal '23. So again, when we discussed it several times since the beginning of this fragrance index phenomenon, we really tried to explain as much as we could, that this is everything, but something that's a onetime event and everything has to do with a very profound shift in terms of who are the people who are buying, what they are buying, how they are premiumizing, and they are -- and how social media, in a way, is holding this consumption globally in the different regions around the world.

早安，菲利波。因此，事實上，推動本季指導升級的因素是——第一，市場繼續非常非常強勁，香水市場成長了 10%。與 23 財年第一季的 10% 相比，這確實是一個了不起的數字。所以，自從香水指數現像出現以來，當我們多次討論這個問題時，我們確實盡力解釋，這就是一切，但都是一次性事件，一切都與一個非常深刻的轉變有關就購買者是誰、他們購買什麼、他們如何實現高端化以及他們本身而言——以及社交媒體如何在某種程度上控制全球不同地區的這種消費。

So the market continues to be very good, very strong and very dynamic. And the best way to see it is also in the performance of the company. So on the market that was 10%, Coty fragrances, Prestige fragrances grew by 25%, so 2.5x the growth of the market. Of course, there is a lot of pipeline of new innovations, but these innovations, they are all delivering very strongly, yes. Of course, there is everything we told you about Burberry Goddess that has become a top 6 fragrance in the U.S. I said it recently top 6 in Sephora in China. In many markets, it's inside the top 10. And this is for sure the #1 innovation in all the key markets around the world.

因此，市場仍然非常好、非常強勁、非常有活力。最好的方式也是看公司的業績。因此，在市場成長率為 10% 的情況下，科蒂香水、Prestige 香水成長了 25%，是市場成長的 2.5 倍。當然，有很多新的創新，但這些創新都非常強勁，是的。當然，我們告訴你的Burberry Goddess的一切都已成為美國排名前六的香水。我說過它最近在中國的絲芙蘭排名前六。在許多市場中，它都躋身前十名。這無疑是全球所有主要市場中排名第一的創新。

But it's not the only one. In fact, you have to know that we don't have 1 brand growing in the high 20s, not 2, not 3, not 4, we have 7 brands, in fact, that are growing in the high 20s. Some of them with innovation and some of them without innovation. So this is also -- I'm sorry to say it, but -- not sorry, I'm proud to say it, this is the good work we are doing at Coty, at creating incredible, exciting, the highly performing innovations in this area of the fragrance -- fragrance growth.

但這並不是唯一的一個。事實上，你必須知道，我們沒有 1 個品牌在 20 歲左右成長，不是 2 個、不是 3 個、不是 4 個，事實上，我們有 7 個品牌在 20 歲左右成長。有的有創新，有的沒有創新。所以這也是——我很遺憾地說，但是——不抱歉，我很自豪地說，這是我們在科蒂所做的出色工作，創造了令人難以置信的、令人興奮的、高性能的創新這個區域的芬芳－芬芳生長。

So that's what it really explains the upgrade of the guidance. We knew that Goddess would be big, but the jury was debating, is it going to be big, very big or extraordinarily big? So this is what we are seeing is that this is going to be quite big if I have to say.

這就是指南升級的真正解釋。我們知道女神會很大，但評審團正在爭論，它會很大、非常大還是特別大？所以這就是我們所看到的，如果我不得不說的話，這將是相當大的。

So second element is the question around how Q2 will land. So you have to know that Q1 is typically a pipe in the quarter, where we pipe the Burberry Goddess, we've been piping also Gucci Magnolia innovation and also Boss Elixir innovation. Q2 is really a quarter of sell-out, as you know it. And the picture that is implied means that we are going to continue to have a very good performance, probably in line with the market or slightly above the market. So that's more or less what we believe is going to be. Hopefully, we have a good surprise. But so far, it does not mean there is a deceleration. It just means that we are all about sell-out versus sell-in plus sell-out in the first quarter.

所以第二個要素是第二季如何落地的問題。所以你必須知道，第一季通常是季度的一個管道，我們在管道中管道了 Burberry Goddess，我們也管道了 Gucci Magnolia 創新和 Boss Elixir 創新。如您所知，第二季度實際上是售罄的四分之一。所暗示的情況意味著我們將繼續擁有非常好的表現，可能與市場一致或略高於市場。所以這或多或少就是我們所相信的。希望我們能有一個驚喜。但到目前為止，這並不意味著減速。這只是意味著我們關注的是第一季的銷售與銷售加銷售。

Our next question will come from Korinne Wolfmeyer with Piper Sandler.

我們的下一個問題將由科林·沃爾夫邁耶和派珀·桑德勒提出。

Congrats on the quarter. So I'd like to piggyback off of the China, Hainan question. I'd like to better understand what are you seeing with sell-in versus sell-out for both China and Asia travel retail? And if it's not normalized yet, when do you think that should normalize? Also, any early reads from 11/11 presales? And then lastly, I'd like to see if there's any commentary you can share on any potential pressure with some of the Middle East tensions that we're seeing?

恭喜本季。所以我想談談中國、海南問題。我想更了解您對中國和亞洲旅遊零售的銷售情況有何看法？如果它還沒有正常化，你認為什麼時候該正常化？另外，有 11/11 預售的早期閱讀嗎？最後，我想看看您是否可以對我們所看到的中東緊張局勢的潛在壓力發表任何評論？

So when it comes to Hainan, today, our inventory levels are okay. There is not any kind of flag to be done in terms of having inventories going up. Of course, we are in front of an easy comparative, if I may say, but still the growth of the fragrance business we are having there and our skin care also business is very high. It's a triple-digit growth. So that's quite -- that's good in a way.

所以說到海南，今天我們的庫存水準還可以。就庫存增加而言，沒有任何標誌可以做。當然，如果我可以說，我們面臨著一個簡單的比較，但我們在那裡的香水業務和護膚業務的成長仍然非常高。這是三位數的成長。所以這在某種程度上是很好的。

When it comes to China inventory levels, they are healthy also on the Prestige side. The only part where we -- that we flagged, by the way, during the script and the earnings, even if this is very, very small portion of our business, is around CB. It's not to do with our -- with the market or anything like this. This has to do with moving from one line to another line at retailers. We revamped the Adidas [shower gel] lines. So -- and we changed it from one factory to another. So we had to build a bit of stock that was pushed to the trade. And then because of the slowdown of the market, this trend went up, and this delayed the arrival of the renovation of the [shower gels].

就中國的庫存水準而言，Prestige 的庫存水準也很健康。順便說一句，我們在劇本和收益期間標記的唯一部分是圍繞 CB 的，即使這只占我們業務的非常非常小的一部分。這與我們的市場或類似的事情無關。這與零售商從一條生產線轉移到另一條生產線有關。我們改進了阿迪達斯[沐浴露]系列。所以——我們把它從一個工廠換到了另一個工廠。所以我們必須累積一些庫存來進行交易。然後由於市場放緩，這種趨勢有所上升，這延遲了[沐浴露]翻新的到來。

So this is the only thing we've flagged in all the communications we have done regarding an increase of inventory. But again, this is a very, very small part of our business given that Coty China business is, what, 90% Prestige and 10% CB more or less. So this is number one.

因此，這是我們在所有有關庫存增加的溝通中標記的唯一一件事。但同樣，考慮到科蒂中國業務大約有 90% 的 Prestige 和 10% 的 CB，這只是我們業務中非常非常小的一部分。所以這是第一。

What do we see on 11/11? The dynamics of the fragrance category is confirmed. This is really something that is confirming month after month, specifically, as I said it before, on the high-end part. And more than ever, people exploring scents or juices that are unexpected for a market like China, which is a great, great, I would say, news because this means that the ability to create full lines for the Chinese consumers, it's crystallizing now, versus what used to be the case just 2 or 3 years ago, which means that you could launch only 2 or 3 flower iterations and you are done with the Chinese market. So there, there is the diversity that you see everywhere else around the world in terms of taste, taste that's starting in the country.

11/11 我們會看到什麼？香水品類的動態已被證實。這確實是逐月得到證實的事情，特別是，正如我之前所說，在高端部分。人們比以往任何時候都更多地探索像中國這樣的市場意想不到的香味或果汁，我想說，這是一個非常非常好的消息，因為這意味著為中國消費者創造全系列產品的能力現在正在具體化，與兩三年前的情況不同，這意味著你只需推出 2 或 3 個花迭代，你就不再涉足中國市場。因此，在品味方面，你可以在世界其他地方看到多樣性，這種品味是從這個國家開始的。

And on the last part of your question, regarding what is happening in the Middle East. This business is a mid-single-digit business at Coty. So far, we are not seeing any negative impact on our business. But that's the situation. But honestly, I have to say that on a personal level, as you know it, I'm very saddened by the violence, and we continue to hope for the peace and then end of the suffering. That was an important point to make after your question.

關於你問題的最後一部分，關於中東正在發生的事情。該業務在科蒂 (Coty) 中屬於中等個位數業務。到目前為止，我們沒有看到對我們業務的任何負面影響。但情況就是這樣。但老實說，我必須說，就我個人而言，正如你們所知，我對暴力事件感到非常難過，我們仍然希望和平，然後結束苦難。這是在你提出問題後要指出的重要一點。

Our next question will come from Anna Lizzul with Bank of America.

我們的下一個問題將來自美國銀行的 Anna Lizzul。

I wanted to ask on the quarter, you had a good deal of operational leverage to help drive the adjusted EBITDA. And I was wondering if you could elaborate on the drivers of this and how you see it progressing through the year?

我想問一下，在本季度，你們有大量的營運槓桿來幫助推動調整後的 EBITDA。我想知道您是否可以詳細說明這一趨勢的驅動因素以及您如何看待這一年的進展？

Yes. Absolutely. Indeed, I mean, we continue definitely -- our strategy is really making sure this flywheel, definitely top line growth, focus on productivity and then making sure that we are allocating resources to support our strategic initiatives, and we keep growing our EBITDA. So this is definitely what the equation you saw in Q1, and indeed is driving us to deliver an EBITDA, which is higher than expectations.

是的。絕對地。事實上，我的意思是，我們肯定會繼續下去——我們的策略確實是確保這個飛輪，絕對是營收成長，專注於生產力，然後確保我們分配資源來支持我們的策略舉措，並且我們不斷成長我們的EBITDA。因此，這絕對是您在第一季看到的方程式，並且確實推動我們實現高於預期的 EBITDA。

So now when looking ahead, what are the components? Number one, of course, we continue this top line agenda. So this is, as you saw, we are raising the top line guidance. Number two, gross margin. Definitely, we are seeing -- I mean, Q2, where our gross margin should be flattish. And then expansion -- gross margin expansion in our H2, which will be the combination of the mix management, as I just shared. Productivity, that we continue targeted pricing. And also we are starting to see some softening on cost of goods inflation and also transportation inflation.

那麼現在展望未來，有哪些組成部分？第一，當然，我們繼續這個首要議程。所以，正如您所看到的，我們正在提高頂線指導。第二，毛利率。當然，我們看到——我的意思是，第二季度，我們的毛利率應該持平。然後是擴張——下半年毛利率的擴張，這將是混合管理的結合，正如我剛才分享的那樣。生產力方面，我們持續有針對性的定價。我們也開始看到商品成本通膨和運輸通膨有所放緩。

So then we will continue, of course, to inject some of this gross margin expansion into the strategic initiatives, the innovation, investment in the capabilities, as we say about digital, also but R&D, and definitely keeping improving our EBITDA margin as we confirm our EBITDA margin full year growing from 10 to 30 basis points. So the flywheel is fully in motion. And of course, with still high discipline on the cost and really making sure that it's fully, fully consistent with the strategic imperatives.

當然，我們將繼續將毛利率擴張的一部分注入到戰略舉措、創新、能力投資中，正如我們所說的數位化，還有研發，並且正如我們確認的那樣，肯定會不斷提高我們的 EBITDA 利潤率我們全年的EBITDA 利潤率從10 個基點成長到30 個基點。所以飛輪完全運轉。當然，對成本仍然嚴格控制，並真正確保其完全符合戰略要求。

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

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

My first question is around your view on margin contribution by segment this year, and whether you think 1 division is expected to show more extension than the other? Are you expecting both divisions to grow margins in light of Q1 trends, Prestige margin, obviously increasing, but Consumer Beauty is still down on a year-over-year basis? And then just broadly in terms of your plans to raise price another round in early calendar '24. If you could just talk about elasticity and your view on the volume trajectory for this year as you implement that next round of pricing.

我的第一個問題是關於您對今年各部門的利潤貢獻的看法，以及您是否認為一個部門預計會比另一個部門表現出更多的擴展？鑑於第一季的趨勢，Prestige 利潤率明顯增加，但消費美容業務仍同比下降，您是否預計這兩個部門的利潤率都會成長？然後，大致而言，您計劃在 24 年初進行另一輪漲價。在實施下一輪定價時，您能否談談彈性以及您對今年銷售軌跡的看法？

Yes. Thank you, Olivia. So just to give you a few elements, as you shared indeed. So I mean, Prestige is showing strong, strong improvement on profitability. And CB starting at a lower pace. What's riding this is that we have -- in the 10% top line growth, Consumer Beauty, we have strong performance on Body Care, which is weighing down the gross margin. So again, it's very positive and absolute value. But definitely, there is some impact on gross margin.

是的。謝謝你，奧莉維亞。正如您所分享的那樣，只是給您一些元素。所以我的意思是，Prestige 在獲利能力方面表現出強勁的進步。 CB 的起步速度較慢。得益於此，我們的消費美容業務收入成長了 10%，而我們的身體護理業務表現強勁，這拖累了毛利率。再說一遍，這是非常積極和絕對的價值。但毫無疑問，這對毛利率有一些影響。

But at the same time, I can tell you that there is a very strong work and huge work to improve the gross margin in Consumer Beauty. And when I was referring to Body Care, it's definitely Brazil is driving this growth, and we have significant gross margin expansion in this category in this market.

但同時，我可以告訴你，在提高消費美容領域的毛利率方面，有一個非常強大、巨大的工作。當我提到身體護理時，巴西無疑正在推動這一增長，而且我們在這個市場的這一類別中毛利率顯著增長。

So definitely, you will see that gross margin in Consumer Beauty will improve quarter after quarter. And this is, again, with -- combined with the strong productivity plan that we are putting in place in Consumer Beauty, big one is being platforming. We are really making sure that now innovation that we are launching across the different brands, in fact, have the same technology, and it brings a significant savings. So it's going to contribute significantly in the coming quarters.

因此，您肯定會看到消費美容業務的毛利率將逐季提高。再一次，與我們在消費者美容領域實施的強大生產力計劃相結合，其中一項重大舉措就是平台化。我們確實確保現在我們在不同品牌上推出的創新實際上具有相同的技術，並且可以帶來顯著的節省。因此，它將在未來幾季做出重大貢獻。

We keep working, as I shared before, on the strategic revenue management. So we have really a deep review -- detailed review on all the value analysis of Consumer Beauty, and we are really identifying significant value. So definitely strong focus, and there is a clear trajectory to improve our Consumer Beauty profitability, definitely in the coming quarters and in the coming years.

正如我之前分享的那樣，我們繼續致力於策略收入管理。因此，我們確實進行了深入的審查——對消費者美容的所有價值分析進行了詳細審查，我們確實正在確定重要的價值。因此，我們絕對會重點關注，並且在未來幾個季度和未來幾年裡，我們的消費美容獲利能力肯定會得到明顯的提高。

So then your second question was definitely on pricing. As I shared at the beginning, we have a strong pricing of it, working on the stream. So they are very precise, very granular, and it went very smoothly over the last quarters. So now we will do very targeted price increase. So when I'm saying very targeted price increase, that's exactly the answer to your question, it's really when we have all the elements, all the analysis that we do this, and it has no impact on the volume.

那麼你的第二個問題肯定是關於定價的。正如我在開始時分享的那樣，我們在直播中對其定價很高。所以它們非常精確、非常細緻，並且在過去的幾個季度中進展非常順利。所以現在我們會做非常有針對性的漲價。因此，當我說非常有針對性的價格上漲時，這正是您問題的答案，實際上是當我們擁有所有要素、所有分析時我們才這樣做，並且它對數量沒有影響。

So what are the drivers, it's really when we know that it's about products, where there is high demand, there is high success. And definitely, we know that we can -- or there is a gap between channels or between competition, and definitely, we have room to increase price and, again, without impacting volumes. And we made very clear, and I repeat and you saw it in Q1, we are making sure that our growth is well balanced between volume, mix and price.

那麼驅動因素是什麼？實際上，當我們知道這與產品有關時，哪裡有高需求，哪裡就有高成功。當然，我們知道我們可以——或者通路之間或競爭之間存在差距，當然，我們有提高價格的空間，而且不會影響銷售。我們非常明確地表示，我重複一遍，你在第一季看到了這一點，我們正在確保我們的成長在數量、產品組合和價格之間取得良好平衡。

Our next question will come from Andrea Teixeira with JPMorgan.

我們的下一個問題將來自摩根大通的 Andrea Teixeira。

Good night there in China. So just on the -- I mean, again, congrats on the top line delivery. But on the Consumer Beauty, Laurent, you just mentioning some of the efforts. And we saw some improvement in market share. Should we expect some [velocity]? And so, I think you mentioned when we saw each other recently in terms of like how you're seeing the shelf space looking ahead in the spring resets, in particular in the U.S. and the U.K. So how should we be thinking as we see Consumer Beauty recovering there in the -- in particularly in those key countries? Will we see more like velocity? And then as retailers see that improvement, they would decide on shelf space into probably calendar '25.

在中國晚安。所以，我的意思是，再次祝賀您的頂線交付。但關於消費者美容，Laurent，您只是提到了一些努力。我們看到市場佔有率有所提高。我們應該期待一些[速度]嗎？所以，我想你提到當我們最近見面時，你如何看待春季重置的貨架空間，特別是在美國和英國。那麼當我們看到消費者時，我們應該如何思考那裡的美麗正在恢復——特別是在那些主要國家？我們會看到更多類似速度的東西嗎？然後，當零售商看到這種改進時，他們會決定將貨架空間安排到可能的日曆「25」。

And then on the investment side, if you can help us, like, of course, there's so much reinvestment that I think investors appreciate. The overhead in SG&A total dollars in the shorter month has been around $740 million per quarter. And then you obviously ramp up to around $800 million. Is that the way in the level of dollars that we should be working with?

然後在投資方面，如果你能幫助我們，當然，我認為投資者會欣賞如此多的再投資。較短月份的 SG&A 總管理費用約為每季 7.4 億美元。然後你顯然會增加到 8 億美元左右。這就是我們應該使用的美元等級嗎？

And sorry, lastly, on the clarification on deciding to sell or to postpone the Wella sale. It seems that you have not reached an agreement on the pricing, I think, and I understand that. But just to think about how we should be thinking that becomes a put into KKR in calendar '25, and how that negotiation is a set valuation that you're looking to do? Or is that something that should be negotiated by the time we crossed that bridge.

最後，抱歉，關於決定出售或推遲 Wella 銷售的澄清。我想你們似乎還沒有就定價達成一致，我理解這一點。但想想我們應該如何考慮在 25 年日曆中將其納入 KKR，以及您希望進行的談判如何確定估值？或者說這是我們跨過那座橋時應該要協商的事情。

Andrea, I'm going to let Laurent answer on the 2 last questions, which have short answers, and then I'll take the question on CB, which is a little bit longer in terms of answer.

安德里亞，我將讓 Laurent 回答最後 2 個問題，答案很短，然後我將回答 CB 的問題，答案有點長。

Yes, absolutely. So indeed, on Well, yes, it's important I give you a full picture. So what are the elements? Number one is definitely that we are seeing a very strong cash flow trajectory in the first half fiscal '24 and the full fiscal '24. So definitely, this third element is giving us full confidence to reach our leverage ratio. Number two, as you know, we had -- we implemented our dual listing end of September, and we made an offering, which was very successful. And again, this is a second element, which is accelerating our deleveraging. So definitely.

是的，一點沒錯。所以確實，嗯，是的，重要的是我給你一個全面的了解。那麼要素有哪些呢？第一個肯定是，我們在 24 財年上半年和 24 財年整個財年看到了非常強勁的現金流軌跡。因此，毫無疑問，這第三個因素讓我們完全有信心達到我們的槓桿率。第二，如你所知，我們在九月底實施了雙重上市，並進行了發行，非常成功。再說一遍，這是第二個因素，它正在加速我們的去槓桿化。所以絕對是。

And number three, just to be very clear, I mean the point is not about pricing. I mean, I can tell you, the due diligence, which was made on Wella fully confirm the great value of the company and the pricing. There was just -- I mean, if I make it some small misalignment on indeed on minority rights. And this thing happened. But again, based on the first 2 elements, we came to the decision that, okay, it was better to stop the transaction.

第三，要非常明確的是，我的意思是重點不在於定價。我的意思是，我可以告訴你，對 Wella 進行的盡職調查充分證實了該公司和定價的巨大價值。我的意思是，如果我在少數群體權利方面確實存在一些小偏差的話。這件事發生了。但同樣，根據前兩個要素，我們做出決定，好吧，最好停止交易。

But be very clear that it doesn't change our agenda that we are targeting really the full divestiture of Wella by end of calendar '25. The value of Wella is absolutely confirmed, and you saw it in our books. And the relation with Wella is excellent, and the relation with KKR is excellent, and the Wella is a very good business.

但要非常清楚的是，這不會改變我們的議程，我們的目標是在 25 年底前完全剝離 Wella。 Wella 的價值絕對得到證實，您在我們的書中也看到了這一點。與 Wella 的關係非常好，與 KKR 的關係也非常好，Wella 是一項非常好的生意。

So yes, well, your question on SG&A. I mean the key element is definitely that we are investing, but still growing our SG&A. So we are growing our SG&A below sales growth. But it is important also that you keep in mind that in SG&A, we are making sure that we are investing in our digital capabilities, we are investing in our R&D capability. So we are making sure so that within the SG&A, we have productivity on cost, where we don't see value for the business, but we are also investing on SG&A capabilities, which are creating value for the business. So that's the way we are driving also our SG&A question.

所以，是的，你關於 SG&A 的問題。我的意思是，關鍵因素肯定是我們正在投資，但仍在增加我們的銷售及管理費用。因此，我們的銷售成長、管理費用成長低於銷售成長。但同樣重要的是，您要記住，在 SG&A 中，我們確保我們投資於我們的數位能力，我們投資於我們的研發能力。因此，我們要確保在 SG&A 範圍內，我們具有成本生產力，但我們看不到業務價值，但我們也在投資 SG&A 能力，這為業務創造了價值。這就是我們提出 SG&A 問題的方式。

So now on the Consumer Beauty question, regarding what's the trajectory of the division in terms of growth. Two things. The first one is that we are diversifying our sources of growth in Consumer Beauty. The majority of our sales are coming today from color cosmetics, and I will say a few words about this in a few minutes. But we are also building the machine to make Consumer Beauty a maker of mass fragrances. Here in China, we just had a meeting, and what we see is that there is potential all around the world.

現在就消費者美容問題而言，該部門的成長軌跡是什麼。兩件事情。第一個是我們正在使消費美容領域的成長來源多元化。今天我們的大部分銷售來自彩妝，幾分鐘後我將對此說幾句話。但我們也在打造機器，讓 Consumer Beauty 成為大眾香水製造商。在中國，我們剛剛舉行了一次會議，我們看到的是世界各地都有潛力。

In every country, people are craving for fragrances from the lowest price possible to the highest price possible. So this is an area that is very important for the division. It's to diversify the sources of growth and to diversify ideally in categories that are highly relative, and fragrances are highly relative to the gross margin of the Consumer Beauty division. Makeup is quite high also in the 60s, if not higher.

在每個國家，人們都渴望購買從最低價格到最高價格的香水。所以這是一個對部門來說非常重要的領域。這是為了實現成長來源的多元化，並在高度相關的品類中實現理想的多元化，而香水與消費美容部門的毛利率高度相關。六十年代的化妝水平即使不是更高，也是相當高的。

And this area, what we are doing, as I said this several times, is that we are accelerating the pace of innovation, specifically what I call premiumized innovation. So you've seen recently some innovation coming under CoverGirl, now platform, quite instantly, I have to say, because this is coming 6 months after, 8 months after now under email, we are platforming this premiumized innovations. And this is going to help us a lot to drive the -- of course, the profitability higher, but also to attract this younger generation.

在這個領域，我們正在做的事情，正如我多次說過的，我們正在加快創新的步伐，特別是我所說的高端創新。所以你最近看到了 CoverGirl 下的一些創新，現在是平台，我必須說，因為這是在 6 個月後、8 個月後在電子郵件下出現的，我們正在平台化這種高端創新。這將極大地幫助我們提高獲利能力，同時也吸引年輕一代。

So what we have done so far, if I take the example of CoverGirl, is that we have solidified the foundation of the company -- of the brand, sorry, towards, I would say, millennials and Gen X and Boomers. This is something that is not seen in other indie brands. They have mainly a Gen Z business. The one we have is big. And now we are going to build on top of this a more younger Gen Z, mainly digital influencer and advocacy driven business behind this innovation.

因此，如果我以 CoverGirl 為例，到目前為止我們所做的就是我們已經鞏固了公司的基礎——品牌的基礎，對不起，我想說的是，針對千禧世代、X 世代和嬰兒潮世代。這是其他獨立品牌所沒有的。他們主要從事 Z 世代業務。我們的那個很大。現在，我們將在此基礎上建立一個更年輕的 Z 世代，主要是數位影響者和倡導驅動的創新背後的業務。

So the things I can share with you and which will take me to the shelf space is that CoverGirl is closing the gap versus the market. We are closing the gap while growing quite strongly. It happens that someone is growing much stronger, but the reality is that we are part of those who are still growing, but closing the gap versus the market. In brick and mortar, the gap was of 8 points in the last 9 months, and it's 6 points in the last 3 months, and now it's less than 3 points.

因此，我可以與您分享的、也將帶我進入貨架空間的事情是，CoverGirl 正在縮小與市場的差距。我們正在縮小差距，同時成長相當強勁。有時候，有人會變得更強大，但現實是，我們是那些仍在成長的人中的一部分，但與市場的差距正在縮小。在實體方面，過去 9 個月差距為 8 分，過去 3 個月差距為 6 分，現在差距不到 3 分。

On Amazon, the brand is driving the growth of the category. The gap was 1.4 for CoverGirl above the category at Amazon in the last 9 months. In the last 3 months, CoverGirl is 20 points above the category at Amazon. And in the last month, it's still 20 -- 18, 19 points above the category. So it's clearly there that it's happening. It's clearly there that the advocacy influencer marketing plan (technical difficulty) signs, and we hope to see this translating also on the brick and mortar side of the market.

在亞馬遜上，該品牌正在推動該類別的成長。過去 9 個月，CoverGirl 與亞馬遜類別的差距為 1.4。過去 3 個月，CoverGirl 比亞馬遜同類產品高出 20 個百分點。上個月，它仍然比類別高出 20 - 18、19 個百分點。所以很明顯它正在發生。很明顯，倡導影響者行銷計劃（技術難度）就在那裡，我們希望看到這種轉換也體現在市場的實體方面。

Given -- regarding the shelf space, we believe that the shelf space resets up spring, the shelf space of our brands would be stable. Hopefully, it will grow in 2025, as you are suggesting it, thanks to our very, very strong plan of innovation, more innovation, quicker beats by a strong influencer and advocacy teams around the world, which hopefully will give us the ability to start to increase our shelf space again. But keep in mind that it's expected to be stable.

鑑於貨架空間，我們認為春季貨架空間重置，我們品牌的貨架空間將保持穩定。希望它能夠在2025 年成長，正如您所建議的那樣，這要歸功於我們非常非常強大的創新計劃、更多的創新、世界各地強大影響者和倡導團隊的更快節奏，這希望將使我們有能力開始再次增加我們的貨架空間。但請記住，它預計會保持穩定。

Our next question will come from Charles Scotti with Kepler.

我們的下一個問題將來自查爾斯·斯科蒂和開普勒。

I have 3 actually. The first one, I was pretty impressed by your performance in Asia Pacific. What was behind the strength of your business there, unlike most of your competitors? And more specifically in the Travel Retail channel, it was apparently very strong everywhere for you. And so if you could give us an idea of the breakdown of the Travel Retail business by geography?

其實我有3個。第一個，你們在亞太地區的表現給我留下了深刻的印象。與大多數競爭對手不同，您的業務實力背後的原因是什麼？更具體地說，在旅遊零售通路中，它顯然在任何地方都非常強大。那麼您能否讓我們了解一下旅遊零售業務按地理位置的細分情況？

Second question on inventories. One of your Paris-listed competitors said that retailers have now rebuilt their inventories, with the supply chain tensions easing. Do you have any view on the level of inventories in the trade in Europe and in the U.S.? And is the expected deceleration of the growth in Q2 related to potential destocking impact?

第二個問題，關於庫存。你們在巴黎上市的競爭對手之一表示，零售商現在已經重建庫存，供應鏈緊張局勢有所緩解。您對歐洲和美國貿易的庫存水準有何看法？預計第二季成長放緩是否與潛在的去庫存影響有關？

And finally, just a follow-up question on the question of one of my peers. Your H1 guidance suggest 5% to 8% organic growth in Q2, I guess you may have been cautious again. But why will growth decelerate so much going forward? And do you have already some indication on the sell-out in October and early November pointing to a deceleration?

最後，我想對我的一位同行的問題提出一個後續問題。您的上半年指導建議第二季度有機成長 5% 至 8%，我猜您可能再次保持謹慎。但為什麼未來成長會大幅放緩呢？您是否已經看到 10 月和 11 月初銷售放緩的跡象？

Yes. Charles, this is Sue speaking. So again, regarding the performance that you're referring to in APAC, and indeed, the Travel Retail part has been very, very strong. To answer in small -- specifically in Travel Retail, this company was mainly an entry Prestige fragrance seller 2 or 3 years ago, and we've decided that we are going to play on the full scope of what fragrance market is about. Entry Prestige fragrances, where the company has always been very strong, and this is continuing to grow very, very fast. One of our fastest-growing brand in this channel is Calvin Klein, which is an entry Prestige brand that's doing very, very well. We've added on top of these premium brands, like recently Burberry Goddess, [Chloé], et cetera, and we added also niche offering on top of this.

是的。查爾斯，我是蘇。再說一遍，關於您提到的亞太地區的表現，事實上，旅遊零售部分一直非常非常強勁。簡而言之，特別是在旅遊零售領域，這家公司在兩三年前主要是一家入門名牌香水銷售商，我們決定全面涉足香水市場。入門級高級香水，該公司一直非常強大，並且正在繼續非常非常快速地成長。我們在這個管道中成長最快的品牌之一是 Calvin Klein，這是一個表現非常非常好的入門品牌。我們在這些優質品牌的基礎上添加了新產品，例如最近的 Burberry Goddess、[Chloé] 等，此外我們還添加了利基產品。

Next to this, I would say, full lineup of brands occupying all the different price tiers of the fragrance market. We have also 3 makeup brands. We have Kylie Cosmetics, Gucci Makeup, Burberry Makeup, and these are doing very, very well. So this is a second leg of growth engine we are added to this channel.

除此之外，我想說的是，全系列品牌佔據了香水市場的所有不同價格層。我們還有3個化妝品品牌。我們有凱莉化妝品、古馳彩妝、巴寶莉彩妝，這些都做得非常非常好。所以這是我們加入這個管道的第二個成長引擎。

And number three, last but not least, it's also about a skin care. And there, we have Lancaster that is quite doing very well in this area. I said to you that the brand is having double-digit growth, for example, in Hainan. But we are also starting mainly in domestic markets in the southeast part of the Asian continent with philosophy skin care. That is a brand that is present in a Sephora environment, which we believe has a role to play in this clinical market.

第三，最後但並非最不重要的一點是，它也與皮膚護理有關。在那裡，蘭卡斯特大學在這方面做得非常好。我告訴你，這個品牌正在有兩位數的成長，例如在海南。但我們也主要從亞洲大陸東南部的國內市場開始推出哲學保養品。這是絲芙蘭環境中存在的一個品牌，我們相信它在這個臨床市場中可以發揮作用。

So that's more or less what explains this overperformance. We did a year fiscal '23 at plus 30% in Travel Retail. We are continuing to grow at plus 20% in this channel. And this, again, despite the fact that we are still far under the level of travelers in Europe, specifically Chinese traveler. We believe that only 30% of the levels of Chinese traveler pre-pandemic are now back outside of China. So there is still some room over there if this happens 1 day.

這或多或少可以解釋這種超預期的表現。 23 財年，我們的旅遊零售業務成長了 30%。我們在這個管道中繼續以 20% 以上的速度成長。再說一遍，儘管我們仍然遠低於歐洲遊客的水平，特別是中國遊客的水平。我們認為，目前只有疫情爆發前的 30% 的中國遊客返回中國境外。因此，如果這種情況發生 1 天，那裡仍然有一些空間。

Now when it comes to the questions around the trade in Q2, but also inventory.

現在談到第二季的貿易問題，還有庫存問題。

Yes, yes, in Q2. So maybe to start on your second part is on data. So we are not seeing any slowdown in categories or sell-out in October. So these are definitely strong element, and this is what we are focusing on. Then number two, on trade inventories. The inventory is very healthy. This is what I can tell you. The only element I will add and which will answer this phase in Q1, Q2 is that, of course, as Sue mentioned at the beginning, is that our Q1 was very strong on innovation, and there is natural pipe fill from our retailers on the great innovation that we are launching and with very, very strong results, which is Burberry Goddess, Hugo Boss Elixir, and we have also Gucci Magnolia. So there is really a mechanical effect of pipe fill for retailers, but which will translate in a very strong sell-out in Q2. So this is really the way you need to model the equation. It's between selling, pipe fill, and Q2 is always a quarter of strong sell-out, especially for Prestige.

是的，是的，在第二季。所以也許你的第二部分是從數據開始的。因此，我們沒有看到 10 月份的品類或銷售量出現任何放緩。所以這些絕對是強而有力的元素，這也是我們關注的重點。其次是貿易庫存。庫存非常健康。這就是我可以告訴你的。我要添加的唯一元素將回答第一季、第二季的這一階段，當然，正如蘇在開頭提到的那樣，我們的第一季在創新方面非常強大，而我們的零售商在第一季度提供天然管道填充。我們正在推出偉大的創新，並取得了非常非常強勁的成果，這就是 Burberry Goddess、Hugo Boss Elixir，我們還有 Gucci Magnolia。因此，管道填充確實對零售商產生了機械效應，但這將轉化為第二季的強勁銷售。所以這確實是您需要對方程式進行建模的方式。這是在銷售、管道填充之間，第二季度總是有四分之一的銷售強勁，尤其是對於 Prestige 來說。

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。

Just a few quick follow-ups, hopefully. So just on the mix line relative to pricing. Laurent, I was under the impression pricing would be something like mid-single-digit incremental in February, March. I think you said low single digit earlier in the call. I may have misheard you. But is there an expectation for less pricing because you're getting such strong performance on mix and also that inflation is decelerating? Maybe you're seeing less needs to price? Or it's possible, I may just misheard you. And then on the -- it's a small question, but just on the [opalescence] was that just you had built up so much inventory because you wanted to be ready for the sell-in, and it was just a little bit less than you were expecting. And you had to take that on the gross margin in the quarter. And so maybe just any perspective on that, of course, in the context of strong delivery in Q1?

希望只是一些快速的後續行動。所以只是在相對於定價的組合線上。勞倫特，我的印像是二月、三月的定價會是中個位數的增量。我認為您在通話早些時候說過低個位數。我可能聽錯你的話了。但是，是否會因為混合產品的表現如此強勁並且通膨正在放緩而預期定價會降低？也許您發現定價需求減少了？或者也有可能，我可能聽錯了。然後--這是一個小問題，但就[乳光]而言，您已經建立瞭如此多的庫存，因為您想為銷售做好準備，而它比您少一點點正在期待。你必須將其計入本季的毛利率。當然，在第一季強勁交付的背景下，也許只是對此有任何看法？

Of course. So let me clarify the first point. I mean we never said that we will do mid-single digit in February. So I want to make it very clear. So now, indeed, we are seeing low single digit. But then you made the point, is that we are really monitoring in a very targeted manner and granular manner indeed because also we have a favorable effect from the mix. And the favorable positive effect from the mix is also driven by the accretive innovations we are putting in place. So in a way, it's really where you put the frontier between pricing or mix.

當然。那麼讓我澄清第一點。我的意思是，我們從未說過我們將在二月實現中個位數的成長。所以我想說得很清楚。所以現在我們確實看到了較低的個位數。但後來你指出，我們確實以非常有針對性和細緻的方式進行監控，因為我們也從混合中產生了有利的效果。我們正在實施的增值創新也推動了這種組合帶來的有利正面影響。所以在某種程度上，這確實是你在定價或組合之間劃定界線的地方。

And of course, we are putting the accretion from the innovation in the mix part. But of course, at the end of the day, the objective is that all these initiatives mix, targeted pricing and also strategic revenue management are here really to increase the average unit price, okay? So and this is really what we put under this umbrella of strategic revenue management.

當然，我們正在將創新的累積放入混合部分。但當然，歸根結底，目標是所有這些舉措的結合、有針對性的定價和策略收入管理實際上都是為了提高平均單價，好嗎？因此，這確實是我們置於策略收入管理框架下的內容。

And second element, yes, we are seeing inflation starting to ease, especially in COGS and transportation. So we are making sure also that we are adapting our growth equation in a smart manner. But I want to be very clear that we keep focusing on value creation and really implementing all the levers that we have in our hands.

第二個因素是，我們看到通貨膨脹開始緩解，特別是在銷貨成本和運輸方面。因此，我們還要確保以明智的方式調整我們的成長方程式。但我想非常明確的是，我們將繼續專注於價值創造，並真正運用我們手中的所有槓桿。

So yes, your second question was on the E&O. No, just to be very clear, I mean, the demand this year, there is just some pure mechanical, and I will say, accounting effects that indeed last year due to service level issues in this inventory was pretty low. We rebuilt inventories. This is a strategic decision we are making really to have a service level, which is a good service level. Now we are 96% service level, which is a great achievement. And also to make sure that the sell-out, which is strong, is really successful, and we have the other products.

是的，你的第二個問題是關於 E&O 的。不，要非常明確的是，我的意思是，今年的需求只是一些純機械的，我會說，去年由於庫存中的服務水平問題，會計影響確實相當低。我們重建了庫存。這是我們真正為了提高服務水準而做出的策略決策，這是一個良好的服務水準。現在我們的服務水準達到了96%，這是一個了不起的成就。也要確保強勁的銷售確實成功，而且我們還有其他產品。

So it's again, mechanical accounting treatment, but no concern at all in terms of inventory. And that's why now I'm telling you that we are seeing flattish gross margin in Q2, and there will be some acceleration of gross margin in H2 fiscal '24.

所以這又是機械會計處理，但根本不關心庫存。這就是為什麼現在我告訴你，我們在第二季度看到毛利率持平，並且在 2024 年下半年毛利率將會有所加速。

Our next question will come from Ashley Helgans with Jefferies.

我們的下一個問題將由傑弗里斯的阿什利·赫爾根斯提出。

This is Sydney, on for Ashley. I was just wondering if you could give kind of any color into what you're seeing or expecting for the promotional environment heading into holiday?

這是悉尼，阿什利上場。我只是想知道您是否可以為您所看到或期待的假期促銷環境提供一些色彩？

Laurent, do you want to take this question?

勞倫特，你想回答這個問題嗎？

Yes, I mean -- but overall, I mean, I can confirm you and what you see that the sell-out is very strong, and the sell-out is very strong with premiumization. This is what we are seeing both in Prestige and Consumer Beauty. And again, the clear demonstration is that the innovation that we are launching, which are with higher value, higher price, definitely, we are seeing very high demand.

是的，我的意思是——但總的來說，我的意思是，我可以向你證實，你所看到的情況是，銷售非常強勁，而且高端化的銷售非常強勁。這就是我們在 Prestige 和 Consumer Beauty 中看到的情況。再次，清楚地表明我們正在推出的創新具有更高的價值、更高的價格，當然，我們看到了非常高的需求。

So no, we are not seeing any increase in promotional. Maybe to give a more specific item. I mean last year due to the service level issues, shortage of component, we reduced drastically our giftsets. Giftsets is usually in the mid-teens ratio, last year was much lower. So this year, we are bringing back to a normal level of giftsets, but this is a normal way of animating the category. It's very healthy. But okay, keep this question that we are not seeing indeed overall promotional increase of promotional activity in our categories and in our activities.

所以不，我們沒有看到促銷活動有任何增加。也許要給出更具體的項目。我的意思是去年由於服務等級問題、組件短缺，我們大幅減少了禮品套裝。禮品套裝的比例通常在十幾歲左右，去年要低得多。因此，今年，我們將禮品套裝恢復到正常水平，但這是激活該類別的正常方式。這是非常健康的。但是，好吧，保留這個問題，我們確實沒有看到我們的類別和活動中促銷活動的整體促銷增長。

So as this was the last question, please allow me for some closing remarks.

由於這是最後一個問題，請允許我做一些結束語。

So first of all, thank you, everyone, for joining us. To sum up, I would say a few things, a few important things. Number one, we are very pleased with the strong Q1 results, which really sets us a great trajectory for the fiscal '24, and we are very excited by the many opportunities that are still ahead for the company.

首先，感謝大家加入我們。總結一下，我想說幾件事，幾件重要的事情。第一，我們對第一季的強勁業績感到非常滿意，這確實為我們 24 財年制定了良好的發展軌跡，我們對公司仍然面臨的許多機會感到非常興奮。

We are also, I have to say, extremely grateful for the continued confidence and support from all our analysts and investors, as the recently published institutional investor results, again, position Coty as #1 amongst mid-cap companies in our sector. So thank you very much. Thank you again for your trust, and we look forward to speaking with you all very soon.

我必須說，我們也非常感謝所有分析師和投資者的持續信心和支持，因為最近公佈的機構投資者業績再次將科蒂列為我們行業中型公司中的第一名。非常感謝。再次感謝您的信任，我們期待很快與您交談。

Thank you. This does conclude today's call. We appreciate your participation. You may disconnect at any time.

謝謝。今天的電話會議到此結束。我們感謝您的參與。您可以隨時斷開連線。