科蒂集團 (COTY) 2024 Q2 法說會逐字稿

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

你好。我叫托德，今天我將擔任你們的會議操作員。此時此刻，我謹歡迎大家參加科蒂 2024 財年第二季問答電話會議。

As a reminder, this conference call is being recorded today, February 8, 2024 at 8:15 a.m. Eastern or 2:15 p.m. Central European Time. Please note that on February 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，本次電話會議將於今天（2024 年 2 月 8 日）東部時間上午 8:15 或東部時間下午 2:15 錄製。中歐時間。請注意，2 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 the reports filed with the SEC for 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 measurements section of the company's press release.

我想提醒您，今天的許多評論可能包含前瞻性陳述。請參閱科蒂的收益報告和向美國證券交易委員會提交的報告，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非公認會計準則財務衡量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 Rob Ottenstein with Evercore.

（操作員說明）我們的第一個問題將來自 Evercore 的 Rob Ottenstein。

Congratulations on another terrific quarter. So Sue, your outperformance in Prestige Fragrances was really impressive, 2 questions on that. How much of that outperformance is attributable to new brand launches? And then second, as Prestige Fragrance, as the prestige fragrance market normalizes, can you continue your outperformance? And if so, what gives you the confidence to be able to do that.

恭喜又一個精彩的季度。 Sue，你在 Prestige Fragrances 的出色表現確實令人印象深刻，有兩個問題。這種優異的表現有多少歸功於新品牌的推出？其次，作為 Prestige Fragrance，隨著高端香水市場的正常化，你能繼續保持優異的表現嗎？如果是這樣，是什麼讓您有信心做到這一點。

Yes, thank you very much for your kind words. Indeed, it's a very good quarter, specifically driven by the Prestige performance. The outperformance in this division has been achieved, thanks to a very good, I have to say, balance of new launches and strong performance of the base business which is also supported by the [Chloe] from the launches. If I take the example of Burberry Goddess or Burberry as a brand, all the 3 lines are growing. The one that is, by definition, new Burberry Goddess biggest launch ever at Coty, top one fragrance innovation around the world, while at the same time, Burberry Her, which is a few years old or Burberry Eau which is 2.5 years old, are also growing. So in fact, this, I would say, outstanding performance we're having behind our innovation is also benefiting other brands.

是的，非常感謝您的客氣話。事實上，這是一個非常好的季度，特別是在 Prestige 表現的推動下。我必須說，由於新產品的推出和基礎業務的強勁表現取得了很好的平衡，該部門取得了優異的業績，這也得到了[Chloe]的支持。如果我以 Burberry Goddess 或 Burberry 作為品牌為例，這 3 個系列都在成長。顧名思義，這款新Burberry Goddess 是科蒂(Coty) 有史以來最大的一款香水，是全球頂級的香水創新產品，而與此同時，已有幾年曆史的Burberry Her 或已有2.5 年曆史的Burberry Eau，都是也在成長。事實上，我想說，我們創新背後的出色表現也讓其他品牌受益。

Some other brands of the portfolio I'm thinking about Calvin Klein or Davidoff are also growing double digits without new innovation. So in a way, it's really a good balance between innovation and base business, if I may call it like this. And what gives us the confidence in this outperformance in this market that's going to normalize, still is going to be mid- to high single-digit growth, which is far above what was the case just a few years ago. But the confidence we're having it from a lot of capabilities we have been able to build during the last 3 years. Capabilities to build blockbusters, be it in terms of creating winning juices, creating winning mixes, finding the right balance between influencer marketing, classical media, sampling et cetera.

我正在考慮的產品組合中的其他一些品牌，如 Calvin Klein 或 Davidoff，在沒有新創新的情況下也實現了兩位數的成長。因此，在某種程度上，如果我可以這樣稱呼的話，這確實是創新和基礎業務之間的良好平衡。讓我們對這個即將正常化的市場表現出色的信心仍然是中高個位數成長，這遠高於幾年前的情況。但我們的信心來自於我們在過去三年中建立的許多能力。打造大片的能力，無論是創造成功的果汁、創造成功的組合，或是在影響者行銷、經典媒體、取樣等之間找到適當的平衡。

All this is a know-how that's here to stay and here to develop. It's also a confidence that we are taking from our [still] white space opportunities geographically speaking, but also white space opportunities in terms of categories. So all of these give us confidence that we will hopefully continue to outperform this very dynamic market.

所有這些都是一種可以保留並發展的專業知識。這也是我們從地理位置上的[仍然]空白機會以及類別方面的空白機會中獲得的信心。因此，所有這些都讓我們有信心，我們將有望繼續跑贏這個充滿活力的市場。

Our next question comes from Oliver Chen with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Oliver Chen。

Sue and Laurent, you made so much nice progress regarding prices, and you mentioned targeted pricing going forward. Could you speak to what you mean there in terms of the opportunities as you surgically analyze that, also to e-commerce impressively drove 40% of your like-for-like sales growth. What do you see ahead in terms of embracing that channel in the centers of excellence and community and TikTok innovation as well?

蘇和洛朗，你們在價格方面取得了很大的進展，並且你們提到了未來的目標定價。當您進行外科手術分析時，您能談談您所說的機會嗎？電子商務令人印象深刻地推動了您 40% 的同比銷售成長。您對在卓越中心、社區和 TikTok 創新中採用該管道有何看法？

Thank you, Oliver, for your questions. So on pricing, as you know, I mean, we explained several times over the last quarter that we implemented price increase mid-single digit, and this is also what we did beginning of fiscal '24. So this price increase was very successful. It went very smoothly. And you see that it translates that we still are growing volumes. So this was really very good execution very precise, very granular and it needed to work very well.

謝謝奧利佛提出的問題。因此，在定價方面，如您所知，我的意思是，我們在上個季度多次解釋說，我們實施了中個位數的價格上漲，這也是我們在 24 財年開始時所做的。所以說這次漲價是非常成功的。進展非常順利。你看，這意味著我們的銷量仍在成長。所以這確實是非常好的執行，非常精確，非常精細，並且需要很好地工作。

So now looking ahead, Indeed, I indicated that we will continue very targeted price increase. So definitely because all the work that we are doing, value creation, it allows on specific products, specific market, specific channels still to pass some price increase. So this we will continue. But of course, it will be more moderate and very, very targeted. But definitely, we are going to focus even more now is more on the mix and what we are calling really strength that we are pushing, and we explained last time is a strategic revenue management which is really to review the full value that we are creating for retailers and for consumers and definitely focusing on increasing the price per unit.

所以現在展望未來，確實，我表示我們將繼續非常有針對性的漲價。所以肯定是因為我們正在做的所有工作，價值創造，它允許在特定產品、特定市場、特定管道上仍然可以傳遞一些價格上漲。所以我們會繼續這樣做。但當然，它會更加溫和，而且非常非常有針對性。但可以肯定的是，我們現在將更加關注組合以及我們所說的我們正在推動的真正實力，我們上次解釋的是戰略收入管理，這實際上是審查我們正在創造的全部價值對於零售商和消費者來說，肯定會專注於提高單位價格。

I give you some examples. The innovation that was referring to, for example, Burberry Goddess. Burberry Goddess is the #1 innovation on the market, which is Eau de Parfum, and Eau de Parfum is, on average, 30% higher price versus Eau de Toilette. So you see this is a concrete example that now when we are launching new initiatives. We are working really in depth to make sure that this is a higher value versus the base business.

我舉一些例子給你聽。例如，創新指的是巴寶莉女神。 Burberry Goddess 是市場上排名第一的創新產品，它是 Eau de Parfum，而 Eau de Parfum 的價格平均比 Eau de Bathroomte 高出 30%。所以你看，這是我們現在發起新措施時的具體例子。我們正在深入開展工作，以確保與基礎業務相比具有更高的價值。

It is also the case in Consumer Beauty, great innovation that we just launched Simply Ageless Essence and fragrance. This is a high-quality, very premium product with a price which is 30% higher versus the base business, and it is the #1 on Amazon. So you understand this is really we work on improving the price per unit because there is value quality in the product optimizing also -- all the trade terms, reducing promotions.

在消費美容領域也是如此，這是我們剛推出的 Simply Ageless 精華液和香水的絕佳創新。這是一款高品質、非常優質的產品，其價格比基礎業務高出 30%，並且在亞馬遜上排名第一。所以你明白，這其實是我們致力於提高單位價格，因為產品優化也具有價值品質——所有貿易條款，減少促銷。

So it's really this way that now we are really moving towards the strategic revenue management approach, mix improvement and we have already strong examples, and I can tell you definitely the work and all the initiatives that are in place. We really continue to [vision]. So that's why also it's one the big driver of our gross margin expansion in H2, definitely combined with inflation softening and definitely in addition of carryover pricing from last year and also all these strategic revenue management element. So that's a very clear path that we have ahead of us.

因此，現在我們確實正在朝著策略性收入管理方法、組合改進邁進，我們已經有了強有力的例子，我可以明確地告訴你們所做的工作和所有已到位的舉措。我們確實在繼續[願景]。因此，這也是我們下半年毛利率擴張的主要推動力之一，絕對與通膨疲軟相結合，絕對加上去年的結轉定價以及所有這些策略收入管理要素。所以這是我們面前的一條非常明確的道路。

And Oliver on the second part of your question, this is Sue speaking. So how are we embracing e-com digital community management, TikTok, et cetera? Indeed, the performance of e-com during the quarter have been outstanding. As you said it before, 40% of the growth in both divisions comes from e-com. This is really an unprecedented level of performance, I have to say. It's 180 basis points extra penetration in this channel, 20% of growth. And it's quite, I would say, obvious to explain this, thanks to the strategy that we have put in place and explained this several times now since 1.5 years of putting advocacy at the center of our social media strategy.

奧利佛，關於你問題的第二部分，我是蘇。那麼我們如何擁抱電子商務數位社群管理、TikTok 等呢？事實上，本季電子商務的表現非常出色。正如您之前所說，兩個部門 40% 的成長都來自電子商務。不得不說，這確實是前所未有的表現水準。該通路的滲透率額外提高了 180 個基點，即成長 20%。我想說，解釋這一點是顯而易見的，這要歸功於我們自 1.5 年來將宣傳置於社群媒體策略中心以來已經制定並多次解釋的策略。

I can give you the example that Laurent was mentioning, which is Simply Ageless Essence foundation, which is a very innovative product. It's a serum -- transparent serum and you can see capsules of pigment in this serum and they burst on the skin when you apply them, so this is typically the very kind of product that TikTok and any social media is crazy about because it's very visual in the packaging. There is a transformation [onto your skin] something happens. And the result is that it's #1 on Amazon already just after a few weeks.

我可以舉個Laurent提到的例子，就是Simply Ageless Essence粉底，這是一個非常創新的產品。這是一種精華液——透明的精華液，你可以看到精華液中的色素膠囊，當你塗抹它們時，它們會在皮膚上爆開，所以這通常是TikTok 和任何社交媒體所熱衷的產品，因為它非常視覺化在包裝中。 [你的皮膚]發生了一些轉變。結果是，幾週後它就在亞馬遜上排名第一。

And it has been given to the hands of a media influencer that we were referring to during the presentation, we had 95 million views. Can you imagine one post 95 million views, $10 million of EMV, which is the total EMV of [CoverGirl] in the U.S. a year ago for 12 months. So you can see that this transformation of our Consumer Beauty business from a business that was relying on, I would say, a low level of innovation in terms of percentages maybe not enough disruptive innovation, but with the right band equities into a business where we are going to double down the level of innovation, disruptive visual innovation together hand-in-hand with strong advocacy marketing.

它已經交給了我們在演示期間提到的一位媒體影響者的手中，我們有 9500 萬次觀看。你能想像一個貼文的瀏覽量為 9500 萬，EMV 為 1000 萬美元，這是 [CoverGirl] 在美國一年前 12 個月的 EMV 總和。因此，您可以看到，我們的消費美容業務從一個依賴於百分比創新水平較低的業務（我想說，可能還沒有足夠的顛覆性創新，但擁有正確的品牌股票）轉變為我們可以利用的業務。我們將加倍提高創新水平，顛覆性的視覺創新與強有力的宣傳營銷攜手並進。

This translates into this performance that you are seeing, which is obviously driven by Amazon. And to finish on this point, because I guess the question will come at the moment or another, our advocacy plan is really evolving very fast. You've seen the 2 studios we have opened in the U.S. You've seen how much we moved from a few hundreds of influencers with whom we were working just a year ago to 5,000 today and the intention is to do double this triple this, who knows.

這轉化為您所看到的性能，這顯然是由亞馬遜驅動的。最後，因為我想這個問題會在此時或彼時出現，所以我們的倡議計畫確實發展得非常快。你已經看到了我們在美國開設的2 個工作室。你已經看到我們從一年前合作的幾百名影響者發展到今天的5,000 名影響者，我們的目的是把這個數量增加一倍，三倍，誰知道。

So at the end of the day, this is just a starting point and for me, this is next to fragrances. This is the biggest white space opportunity for our color cosmetics brands in the U.S., that's also around the world.

所以歸根結底，這只是一個起點，對我來說，這僅次於香水。對於我們的彩妝品牌來說，這是在美國以及全球範圍內最大的空白機會。

It's very exciting. I got to get some of that [Simply Ageless] looks awesome.

這是非常令人興奮。我必須得到一些看起來很棒的[Simply Ageless]。

Yes, yes. You love it. I'm sure.

是的是的。你喜歡它。我敢肯定。

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。

I wanted to ask on margins for the second half. You're expecting stronger gross margin expansion, the cost inflation moderates. Maybe, Laurent, you can give us some help also below the gross margin line, what reinvestment are you assuming in the second half and whether you still expect 10 to 30 basis points of EBITDA margin expansion in the second half?

我想問一下下半年的利潤。您預計毛利率將成長強勁，成本通膨將放緩。也許，勞倫特，您也可以在毛利率線以下為我們提供一些幫助，您在下半年假設進行什麼再投資，以及您是否仍預計下半年 EBITDA 利潤率擴張 10 至 30 個基點？

So first of all, indeed, I'm really reaffirming that we confirm indeed our guidance. EBITDA margin growing 10 to 30 basis points. So this is really confirming that the right dynamic after growing 40 basis points that we did in Q2. So indeed, on H2, the model is that indeed, we are going to benefit from gross margin expansion -- significant gross margin expansion, which is really a combination of COGS inflation softening. This is definitely a big element, but it's also helped by the carryover of price increase that we did last year and we did beginning of this fiscal year. So in terms of all the work we are doing [on weekends] and last but not least, of course, is all the work we are doing on productivity as part of our all-in to win.

首先，我確實重申，我們確實確認了我們的指導。 EBITDA 利潤率成長 10 至 30 個基點。因此，這確實證實了我們在第二季成長 40 個基點後的正確動態。因此，事實上，在下半年，模型確實是，我們將從毛利率擴張中受益——顯著的毛利率擴張，這實際上是銷貨成本通膨疲軟的結合。這絕對是一個重要因素，但我們去年和本財年年初的物價上漲結轉也起到了幫助作用。因此，就我們[週末]所做的所有工作而言，最後但並非最不重要的當然是我們在生產力方面所做的所有工作，作為我們全力以赴贏得勝利的一部分。

So this is definitely all these drivers are in motion. We keep investing definitely on all the strategic initiatives and all the drivers, Consumer Beauty and Prestige. So this is definitely -- and I confirm again that we will land our [agency] level in the high 20s. So the model is fully on track. Now to be more specific on H2, what we are also including in our model is that we are factoring that now we see Forex turning slightly negative in H2, okay, versus positive in H1, but on the full year, it should be pretty neutral, but there is a phasing effect due to Forex, and another element that you need also to take into account that as we have a headwind effect from Lacoste exit which is impacting mostly H2.

所以這肯定是所有這些驅動程式都在運動。我們繼續對所有策略舉措和所有驅動因素、消費者美容和聲譽進行明確投資。所以這絕對是——我再次確認，我們的[機構]水平將達到 20 多歲。所以這個模型完全步入正軌。現在更具體地講一下下半年，我們在模型中還考慮到，現在我們看到外匯在下半年略有下降，好吧，而在上半年則為正，但從全年來看，它應該是相當中性的，但是由於外匯而存在階段性效應，您還需要考慮另一個因素，因為 Lacoste 退出帶來的逆風效應主要影響 H2。

So if you take all these elements into consideration, you see that we continue to have a very nice EBITDA margin improvement on both semesters and definitely on the full year, confirming this 10 to [40] basis points.

因此，如果您考慮所有這些因素，您會發現我們在兩個學期和全年的 EBITDA 利潤率上都繼續取得了非常好的改善，證實了這一 10 到 [40] 個基點。

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。

I wanted to ask you about the innovation pipeline in Prestige fragrances. If maybe you can give us early unveiling of some of the plans for the next 12 months? Obviously, fantastic performance of late, but that remains more difficult comps are coming. So just thinking through the number of blockbuster launches. How should we think about the focus areas over the next 12 months versus the last 12?

我想問您有關 Prestige 香水的創新管道的情況。您能否提前向我們透露未來 12 個月的一些計劃？顯然，最近的表現非常出色，但更困難的比賽即將到來。因此，只要考慮一下重磅炸彈的發布數量即可。與過去 12 個月相比，我們應該如何看待未來 12 個月的重點領域？

So in fact, the reality is that if you look back at -- what we did in 2022, which was a year with a big pipeline of innovations, you've seen the results we got in 2023, and this with constraint on supply, and they were very, very good. So in fact, the big difference between the Coty of years ago and the Coty of today, is that we are able to grow innovations across several years. Instead of launching and looking for something new and then adding these new things to the portfolio and having a plus and a minus story.

所以事實上，現實情況是，如果你回顧一下我們在2022 年所做的事情，這是一個有大量創新的一年，你會看到我們在2023 年取得的成果，而且這是在供應受到限制的情況下，他們非常非常好。事實上，幾年前的科蒂和今天的科蒂最大的區別在於，我們能夠在幾年內不斷發展創新。而不是推出並尋找新的東西，然後將這些新東西添加到投資組合中，並有一個優點和一個缺點的故事。

So we are growing all innovations at the same time, where we are bringing innovations from the past, I mean, at the same time, while we are bringing new innovations. So when it comes to upcoming innovations, we will continue, of course, to put on the market when we are ready and what we believe is going to be successful in the market. This is also a discipline we have put in place in the company since 3.5 years, which is to launch if and only if we are ready, we have the right mix. We are 100% sure about the success we're going to put in the market.

因此，我們正在同時發展所有創新，我們正在帶來過去的創新，我的意思是，同時我們正在帶來新的創新。因此，當談到即將推出的創新時，我們當然會在準備好並且相信會在市場上取得成功的情況下繼續投放市場。這也是我們自 3.5 年以來在公司製定的紀律，即當且僅當我們準備好、擁有正確的組合時才推出。我們 100% 確信我們將在市場上取得成功。

Remember, Goddess, I started to talk about Goddess before we launch it. We started to say everyone, this is going to be big and it's confirmed. And this is because we have now all the expertise and capabilities and understanding that allow us to say this is ready to become a big innovation or it's not ready, we should take a bit more time. So of course, I'm not going to reveal what's going to arise. I guess that our competitors are going to read the transcript. So it's not a good idea.

請記住，女神，在我們推出女神之前我就開始談論女神了。我們開始對大家說，這將是一件大事，而且已經得到證實。這是因為我們現在擁有所有的專業知識、能力和理解，使我們能夠說這已經準備好成為一項重大創新，或者還沒有準備好，我們應該多花一點時間。當然，我不會透露將會發生什麼。我猜我們的競爭對手會閱讀文字記錄。所以這不是一個好主意。

Fair enough. And then my next question is just around China and Travel Retail. Obviously, your results have been very strong as you continue building out your businesses there. So can you just talk through some incrementality and the plans there? How much of your product lineup that you intend to introduce there is already deployed and whether any of the recent macro challenges have impacted your ability to sort of reach the longer-term goals you have for the market, both in China and Travel Retail?

很公平。我的下一個問題是關於中國和旅遊零售。顯然，隨著您繼續在那裡發展業務，您的業績非常強勁。那麼您能談談一些增量和計劃嗎？您打算在中國推出的產品系列中有多少已經部署，最近的宏觀挑戰是否影響了您在中國和旅遊零售市場實現長期目標的能力？

And then just lastly, you've started the skin care expansion in China, Lancaster, Orveda, fantastic brands, obviously, the launch in Shanghai with Orveda maybe just talk through your plans there a little bit more, that would be fantastic.

最後，您已經開始在中國拓展護膚品業務，Lancaster、Orveda，這些出色的品牌，顯然，Orveda 在上海的推出可能只是再多談談您在那裡的計劃，那就太棒了。

So let me start with Travel Retail. We finished fiscal '23 with 30% of growth in Travel Retail and the first half of fiscal '24 is adding an extra 20% growth in this channel. This is really a channel where we are consistently gaining market share since now a few years in a row. And this is thanks, of course, to the -- of course, the power of our innovations. Remember, Burberry Goddess started first as an exclusive in Travel Retail last summer, which really is helping us to put on the market innovations that are tested in a way among consumers in this channel that we believe are amongst the most experts.

讓我從旅遊零售開始。我們在 23 財年結束時，旅遊零售成長了 30%，而 24 財年上半年，該通路的成長又增加了 20%。這確實是我們連續幾年以來不斷獲得市場份額的管道。當然，這要歸功於我們創新的力量。請記住，Burberry Goddess 去年夏天首先作為旅遊零售領域的獨家產品開始，這確實幫助我們推出市場創新，這些創新在我們認為是最專家的管道中的消費者中進行了測試。

Second thing is that we are moving from a business that used to be just 3 years ago, and entry Prestige solidly fragrance-focused business into a triple access business today with fragrances, makeup, skin care and inside Fragrances, we are now playing in the 3 tiers on the market, entry-prestige, premium brands, but also niche and high-end fragrances with our outstanding performance behind a brand like (inaudible). So this channel is clearly a channel where we intend to continue because it's very related in our equation as you know it.

第二件事是，我們正在從三年前的業務轉向以香水為主的 Prestige 業務，如今進入香水、化妝品、護膚品和室內香水的三重業務，我們現在正處於市場上有3 層，入門級、高端品牌，還有小眾和高端香水，我們在品牌背後表現出色（聽不清楚）。所以這個管道顯然是我們打算繼續的管道，因為如你所知，它與我們的等式非常相關。

And we don't see in our figures any kind of slowdown in the pace of travel at consumers around the world. So this is one for Travel Retail. Now second, in China. So in China, we had also a very good performance, specifically driven by Prestige, which is the immense majority of our net revenue. We just got the beauty research figures about the sell-out during the quarter ending in December and Coty is 30 points above the market.

在我們的數據中，我們沒有看到世界各地消費者的旅行節奏有任何放緩。這是旅遊零售業的例子。現在第二，在中國。因此，在中國，我們也取得了非常好的業績，特別是在聲望的推動下，聲望佔了我們淨收入的絕大多數。我們剛剛獲得了截至 12 月的季度銷售情況的美容研究數據，科蒂比市場高出 30 個點。

So we are doing very well. This is driven mainly by our fragrances, be it Burberry, the other collections that we have in the lines, (inaudible) et cetera. So this is clearly an area where we have -- the first white space is fragrances and even the small size of the company in that country, which give me a segue to skin care. You rightly said that we opened the first one Orveda in Shanghai. It's really a very different strategy we are doing behind these brands. We don't want to get in the game of other promotionality becoming the favorite brand of [Daigou]. This is not where we want to take our highest end brands, and you can understand why.

所以我們做得很好。這主要是由我們的香水推動的，無論是巴寶莉還是我們系列中的其他系列（聽不清楚）等等。因此，這顯然是我們所擁有的一個領域——第一個空白是香水，甚至該公司在該國的規模也很小，這讓我轉向了皮膚護理。你說得對，我們在上海開了第一家Orveda。這確實是我們在這些品牌背後採取的非常不同的策略。我們不想捲入其他促銷的遊戲，成為[代購]最喜歡的品牌。這不是我們想要的最高端品牌，你可以理解為什麼。

So that's the reason why we are experimenting new ways, mastering 100% of the brand's image and equity, mastering how to sell directly to consumers in the environment of Maison. That's everything, but just a point of sale. The Maison is really a place where you will be able, if you visit Shanghai, of course, to experiment the products to have facials, but also to discover how to eat, to discover how to take care of your skin, but also to maybe discover pieces of art. So we are really learning this part of the market that we believe is the next [country] for the beauty industry in general.

所以這就是為什麼我們正在嘗試新的方式，掌握100%的品牌形象和資產，並掌握如何在Maison的環境下直接向消費者銷售。這就是一切，但只是一個銷售點。當然，如果您來上海，您可以在 Maison 嘗試產品、進行面部護理，還可以了解如何飲食、如何護理皮膚，還可以了解如何護理皮膚。發現藝術品。因此，我們確實正在了解這部分市場，我們相信它是整個美容行業的下一個​​[國家]。

There was a study done by [Mackenzie] recently which said that the luxury market is $350 billion. The beauty is just taking a small fraction of this. What we call a real luxury and ultra luxury is clearly the next frontier for a company like ours on top of everything we are doing very well today. So this is for Orveda, the start of the brand over there is very, very good. We have the right consumers reaching out the high network and high network individuals. And in a way, this gives me the occasion to say that this brand got what we consider as the Oscar of the beauty industry, which is the [previously launched] (inaudible).

[Mackenzie] 最近進行的一項研究稱，奢侈品市場價值 3500 億美元。美麗只是其中的一小部分。對於像我們這樣的公司來說，除了我們今天做得很好的一切之外，我們所說的真正的奢華和超奢華顯然是下一個前沿領域。這是 Orveda 的情況，品牌的起步非常非常好。我們有合適的消費者接觸高網絡和高網絡個人。在某種程度上，這讓我有機會說這個品牌獲得了我們認為的美容行業的奧斯卡獎，這就是[之前推出的]（聽不清）。

It was awarded last week. And this is really a fantastic achievement for the brand. That's allowing the brand everywhere else in the U.S. at (inaudible) but also in the niche boutiques where it's present in Europe, to multiply its productivity by 2, 3, 4, by 5, sometimes above this and become sometimes a bigger seller than famous brands with double access. So it's really something that's happening there, but we want to master the time of the expansion of the brand.

它於上週被授予。對於該品牌來說，這確實是一項了不起的成就。這使得該品牌不僅在美國其他地方（聽不清楚），而且在歐洲的小眾精品店中，其生產率可以提高2、3、4、5 倍，有時甚至更高，有時甚至比知名品牌更暢銷。具有雙重訪問權限的品牌。所以這確實是那裡正在發生的事情，但我們想掌握品牌擴張的時間。

Now turning to the second brand that we launched in April in China It's [Lancaster] and this one is doing also very well, and we are now adding a second leg to the brand. We did skincare. And now we are adding the sun care part to the skin care, not that it was not there, but we were focusing our investments behind skin care. And we are realizing that by supporting both, we are increasing the productivity in a tremendous way. So everything is on track. And this -- but it is very important, we are really taking advantage of the momentum we are seeing behind our fragrance business to take the right amount of time not to do any kind of mistake and transform our brands into Daigou favorites.

現在轉向我們四月在中國推出的第二個品牌，它是[蘭卡斯特]，這個品牌做得也很好，我們現在正在為該品牌增加第二條腿。我們做了護膚。現在我們在保養品中加入了防曬部分，並不是說沒有，而是我們把投資重點放在了保養品上。我們意識到，透過支持兩者，我們正在以巨大的方式提高生產力。所以一切都步入正軌。這一點非常重要，我們確實利用了香水業務背後的勢頭，花適當的時間不犯任何錯誤，並將我們的品牌轉變為代購的最愛。

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 2 questions, please. The first one on the ultra premium fragrance market that is outgrowing the Prestige segment. It seems that luxury brands are doubling down on this category. Could you share with us all the initiatives you have in place at the moment to tackle this, in my view [huge growth] opportunity ahead. I'm aware of (inaudible) but -- there any -- other initiatives in place to tackle this segment.

我有 2 個問題，請問。超高端香水市場的第一款產品，其成長速度超過了高端香水市場。奢侈品牌似乎正在加倍押注這一類別。您能否與我們分享您目前為解決這一問題而採取的所有舉措，在我看來，未來有[巨大的增長]機會。我知道（聽不清楚）但是──有任何──其他舉措來解決這個問題。

And second question, on e-commerce, it seems that you are enjoying a very strong growth in the online channel. What's the growth broad based between your DTC platform and also specialty retailers online business? And could you remind us how e-commerce growth is impacting your growth and EBIT margin?

第二個問題，關於電子商務，您似乎在線上管道中享受到非常強勁的成長。您的 DTC 平台和專業零售商線上業務之間的成長基礎如何？您能否提醒我們電子商務的成長如何影響您的成長和息稅前利潤率？

Okay. So let me start with the first question, which is around the ultra premium fragrance market, which is outgrowing indeed the Prestige fragrance underlying market. So there, you're right to mention (inaudible), which we've been mentioning now since several quarters as the best selling line, specifically in Asia and in Travel Retail. I can mention the collections behind each of our brands. The Boss collection is doing fantastically well in the Middle East, in Asia, in many Travel Retail locations. Burberry signatures is doing very, very well in the different areas around the world.

好的。那麼，讓我從第一個問題開始，這個問題與超高端香水市場有關，該市場的成長速度確實超過了高級香水的基礎市場。因此，您提到的（聽不清楚）是對的，幾個季度以來我們一直將其視為最暢銷的產品線，特別是在亞洲和旅遊零售領域。我可以提到我們每個品牌背後的系列。 Boss 系列在中東、亞洲以及許多旅遊零售店表現出色。 Burberry Signatures 在世界各地的不同地區都表現得非常非常好。

And you're right to mention the Coty (inaudible) line that's about to open its first store in the coming weeks. This is something that's really, I would say, the pride of the company. Once you have a product in your hands, I'm sure you'll be totally surprised by everything you will experiment from the packaging, from the box, the longevity of the scent at the same time, originality of the scent that also easy-to-wear scents and everything we are doing behind this brand is the best of the know-how of the company's sustainability is at the maximum we can do with receivable bottles, recyclable bottles, whatever is the right name.

您提到的科蒂（聽不清楚）系列是正確的，該系列即將在未來幾週內開設第一家商店。我想說，這確實是公司的驕傲。一旦你拿到了產品，我相信你會對你所嘗試的一切感到驚訝，從包裝到盒子，同時香味的持久度，香味的原創性也很容易——我們在這個品牌背後所做的一切都是公司可持續發展的最佳專業知識，我們可以利用可接收的瓶子、可回收的瓶子，無論什麼是正確的名稱來做到這一點。

So this area is going to become the new playground that the company if I may call it like this. And you were right to mention are there anything upcoming. What I can reveal is what is public today is the Marni new license that we have announced yesterday. This is a very premium fashion brand. It's very young. It's colorful, it's (inaudible). It's one of the coolest brand today in Asia and in Europe. And as you can imagine, this is going to be part of our agenda to really bring on the market very, very creative juices, very high positioning while at the same time, being part of this fragrance market.

所以這個區域將成為公司的新遊樂場，如果我可以這樣稱呼它的話。你提到的有沒有什麼即將發生是對的。我可以透露的是，今天公開的是我們昨天宣布的 Marni 新許可證。這是一個非常優質的時尚品牌。它很年輕。它色彩繽紛，它（聽不清）。它是當今亞洲和歐洲最酷的品牌之一。正如您可以想像的那樣，這將成為我們議程的一部分，真正將非常非常有創意的果汁推向市場，定位非常高，同時成為香水市場的一部分。

So that's what I can say about what I can reveal. Stay tuned. Hopefully, you'll see things coming soon in this area, too. When it comes to e-com, you're right to mention the very strong growth that I've been commenting earlier. This is broad-based across retail.com and pureplay.com in a way, [DTC] which is the DTC behind our brands. We have DTC behind our skincare brands. You think about (inaudible) one of the biggest DTC platform we have at Coty. And this one is doing very well, the same way the brand has been growing during 3 quarters driven by DTC, same thing behind Orveda, where the DTC is growing here again triple-digit growth, if I'm not wrong. So you can clearly see that this part is also growing. But indeed, the big part of this in terms of net revenue is coming from retailers. When it comes to the profitability, maybe Laurent, you can say a few words about this.

這就是我能透露的內容。敬請關注。希望您也能很快看到這一領域的發展。說到電子商務，您提到我之前評論過的非常強勁的增長是正確的。從某種程度上來說，這是在 Retail.com 和 pureplay.com 上廣泛應用的，[DTC] 是我們品牌背後的 DTC。我們的護膚品牌背後有 DTC。您會想到（聽不清楚）我們在科蒂擁有的最大的 DTC 平台之一。這個品牌做得非常好，就像該品牌在 DTC 推動下的三個季度中一直在增長一樣，在 Orveda 背後也是如此，如果我沒記錯的話，DTC 再次以三位數的速度增長。所以你可以很明顯的看到這部分也在成長。但事實上，就淨收入而言，其中很大一部分來自零售商。說到獲利能力，也許Laurent你可以多說幾句。

Yes, absolutely. And indeed, on the numbers, your question was also contribution to growth. So indeed, that this high 20% growth on e-commerce impact contributed to 40% of the Q2 growth. So it means that our e-com penetration in our numbers is growing by 180 basis points. So you see it's very very healthy, and it's very healthy from a profitability standpoint because indeed, e-com and all players, all channels is strongly margin accretive. So that's indeed part of our gross margin modern and very positive for the equation.

是的，一點沒錯。事實上，關於數字，你的問題也是成長的貢獻。事實上，電子商務影響下 20% 的高成長貢獻了第二季成長的 40%。因此，這意味著我們的電子商務滲透率成長了 180 個基點。所以你會看到它非常非常健康，從盈利能力的角度來看它非常健康，因為事實上，電子商務和所有參與者，所有管道都具有很強的利潤增值能力。所以這確實是我們現代毛利率的一部分，並且對方程式非常積極。

Our next question comes from Anna Lizzul with Bank of America.

我們的下一個問題來自美國銀行的 Anna Lizzul。

This is [Jonathan Kee] on for Anna. I'm just -- 2 questions. First, you mentioned in your prepared remarks a more tempered consumer environment in China and that you're making -- you're tweaking to accommodate these changes. Just wondering if you could give us any details about the tweaks given that economic change in China?

這是[喬納森·基] 為安娜主持的節目。我只是——兩個問題。首先，您在準備好的演講中提到中國的消費環境更加溫和，並且您正在做出調整以適應這些變化。只是想知道您是否可以向我們介紹有關中國經濟變化的調整的任何細節？

And then second, if you could go into any detail about the digital marketing and social media activation, what kind of ROI you're seeing for this marketing spend so far and how the engagement differs by demographic?

其次，如果您能詳細介紹數位行銷和社群媒體活化的任何細節，那麼到目前為止您看到的行銷支出的投資報酬率是多少，以及不同人群的參與度有何不同？

So indeed, when it comes to China, the reality is that we are -- that's my intuition. And again, not studied around this, but everything we see, we hear, we read says that we are in the middle of 2 eras. There was the era where promotionality [Daigou] all this kind of way of buying really created a big bias in this market, and people were waiting for these occasions, for all these sales where people could buy anything that's very desirable at prices that do not work easily with desirability.

事實上，當談到中國時，現實是──這是我的直覺。再說一次，我們沒有圍繞這個問題進行研究，但我們看到、聽到、讀到的一切都表明我們正處於兩個時代的中間。曾經有一個時代，促銷[代購]所有這些購買方式確實在這個市場上造成了很大的偏見，人們正在等待這些機會，等待所有這些銷售，人們可以以不高的價格買到任何非常想要的東西。隨心所欲地輕鬆工作。

So this is something that lasted what it lasted. And now we are in a kind of era where it's, I would say, normalizing where we are seeing the brands respecting more and more their own brand equity. Protecting their brand equity, sometimes growing less fast than what they should -- what they want to do. But that's healthy, I would say. And that's also where to really make sure that the bad habits if I may call it of the past are behind us and even if Coty never went into this game, thank god, but this is something that we are really seeing is that there is a shift and consumers are waiting to see how brands are going to be held.

所以這就是它所持續的東西。我想說，現在我們正處於一個正常化的時代，我們看到品牌越來越尊重自己的品牌資產。保護他們的品牌資產，有時成長速度低於他們應該做的事——他們想做的。但我想說，這是健康的。這也是真正確保我們過去的壞習慣已經過去的地方，即使科蒂從未參加過這場比賽，感謝上帝，但我們真正看到的是，有一個消費者正在等待品牌將如何被持有。

So for us, the 30 points above market performance we had in the quarter was really because we have the right brands because we have the right desirability behind these brands, mainly fragrance brands, that are really giving consumers value for money, but not discounted value for money. And that's a very important element. For me, that's the key element that changed between the story of the last 20 years and the upcoming story in the future. Now when it comes to digital marketing and social media activation, maybe Laurent, you can say a few words about the ROI of the...

因此，對我們來說，本季的市場表現高出30 個百分點，實際上是因為我們擁有正確的品牌，因為我們對這些品牌（主要是香水品牌）背後有正確的需求，這些品牌確實為消費者帶來了物有所值，但不是折扣價值為了錢。這是一個非常重要的因素。對我來說，這是過去 20 年的故事和未來即將發生的故事之間變化的關鍵因素。現在，當談到數位行銷和社交媒體活化時，也許勞倫特，您可以談談...的投資回報率。

Absolutely. I mean what I can tell you, I mean, definitely that -- I mean, the ROI is much, much stronger compared to the traditional media so of course, there is no magic number. It depends on what TV activation and what is the launch but this is definitely a strong asset. And now we are really -- the work we have done also over the last years was also to get the capabilities and to get also the tools, okay? So now we have a very strong digital team, well equipped and definitely able to measure and really to focus our investments.

絕對地。我的意思是我可以告訴你，我的意思是，絕對是——我的意思是，與傳統媒體相比，投資回報率要強得多，所以當然，沒有神奇的數字。這取決於電視啟動和發佈內容，但這絕對是一項強大的資產。現在我們真的——過去幾年我們所做的工作也是為了獲得能力和工具，好嗎？因此，現在我們擁有一支非常強大的數位團隊，裝備精良，絕對能夠衡量並真正集中我們的投資。

So this is definitely strong improvement. And that's why we shared also that now majority of our [agency] peer investment now are really in digital and social media. So this is very powerful, we can really target. By demographic, I would just highlight that, as you can easily understand that it's really very strong on Gen Z and that's very powerful because this is also a way to increase penetration from Gen Z. But not only Gen Z, it has also a halo effect on also millennials. So it's really -- it's a very positive cycle. And for us, in terms of resource allocation, a great move.

所以這絕對是一個強而有力的改進。這就是為什麼我們也表示，現在我們的大多數[機構]同儕投資實際上都集中在數位和社群媒體上。所以這是非常強大的，我們可以真正瞄準。從人口統計角度來看，我只是強調這一點，因為你可以很容易地理解，它在Z 世代中確實非常強大，而且非常強大，因為這也是提高Z 世代滲透率的一種方式。但不僅是Z 世代，它還有一個光環對千禧世代也有影響。所以這確實是一個非常正面的循環。對我們來說，在資源配置方面，這是一個偉大的舉措。

And to complement what Laurent said Jonathan on ROI, the best ROI we have is on the most disruptive products. So it's good news because it's in our hands. It's our job to create exciting, desirable, innovative, new, different better products and once you have these products in the hand of consumers, you really start from a very high level of ROI and the rest is all around expertise.

為了補充 Laurent 所說的 Jonathan 關於投資報酬率的觀點，我們擁有的最佳投資報酬率是最具顛覆性的產品。所以這是個好消息，因為它掌握在我們手中。我們的工作是創造令人興奮的、令人嚮往的、創新的、新的、不同的更好的產品，一旦你將這些產品交到消費者手中，你就真正從非常高的投資報酬率開始，剩下的就是專業知識。

Our next question comes from Ashley Helgans with Jefferies.

我們的下一個問題來自 Jefferies 的 Ashley Helgans。

Just wanted to follow up on actually the prior question about the dynamic skin care market that you mentioned. So in China, are you seeing any trade down or shift in preference to more domestic brand?

只是想跟進您提到的有關動態護膚市場的先前問題。那麼在中國，您是否看到貿易下降或偏好轉向更多國內品牌？

So again, the shift towards domestic brands is in this something that is happening mainly on the mass market side, I have to say since now several years. And we've seen some very famous mass market brands, closing [over there]. This part of the business is very small at Coty. It's mainly Adidas that we are having, which is not considered as a mass market brand. Adidas is a kind of a cool brand, fashion brand, [phenomenon] more or less. And we have [Max factor] present on this market. But the reality is that the competition between international mass brands and local brands is fiercer than ever, and this is really a question mark for those who have big brands over there.

因此，我不得不說，幾年來，向國內品牌的轉變主要發生在大眾市場方面。我們看到一些非常著名的大眾市場品牌正在[那邊]倒閉。這部分業務在科蒂公司規模很小。我們主要有阿迪達斯，它不被認為是大眾市場品牌。阿迪達斯或多或少是一個很酷的品牌，時尚的品牌，[現象]。我們在這個市場上有 [Max Factor]。但現實情況是，國際大眾品牌與本土品牌之間的競爭比以往任何時候都更加激烈，這對那些擁有大品牌的企業來說確實是一個問號。

Regarding Prestige and skin care market, we don't see yet this. There is a kind of cohabitation between local new players, specifically in the niche part of the market. You've seen some brands becoming more and more visible created by Chinese founders. Together at the same time as a desirable, I would say, consumption of international brands, a lot of them are with Coty. So I wouldn't say that I see this phenomenon happening in this part.

關於Prestige和護膚市場，我們還沒有看到這一點。本地新參與者之間存在著一種共存關係，特別是在市場的利基部分。你已經看到一些由中國創始人創建的品牌變得越來越引人注目。同時作為一個令人嚮往的國際品牌，我想說，很多都是與科蒂一起消費的。所以我不會說我看到這種現象發生在這部分。

Regarding the trading down, the trading down has been in China, the case for many, many, I would say, quarter because of the promotionality of the market. It's not people moving from an expensive brand to a niche expensive brand. It's people looking for the promotion to buy at cheaper costs. So the only thing I can tell you is that the part still very resilient bit in skin care or in fragrances in China is the high end and the higher end of the market. And this is the one that's protected. So we didn't talk about trading down. I would talk about people chasing promotions. Let's see how long this will last.

關於交易下跌，交易下跌發生在中國，我想說，由於市場的促銷，很多季度都出現了這種情況。人們並不是從昂貴的品牌轉向小眾的昂貴品牌。人們希望透過促銷活動以更便宜的價格購買商品。所以我唯一可以告訴你的是，中國的護膚品或香水領域仍然非常有彈性的部分是高端和高端市場。這是受保護的。所以我們沒有談論降價交易。我會談論人們追逐晉升的情況。讓我們看看這會持續多久。

Our next question will come from Shovana Chowdhury with JPMorgan.

我們的下一個問題將來自摩根大通的 Shovana Chowdhury。

Congratulation on an impressive delivery in the first half, but it seems that you're assuming a steep deceleration. Can you please break down between volume and pricing? Is there any additional door or shop space? And more specifically, do you see a pause to the fragrance index, especially in your prestige fragrances and too early to speak about fiscal '25. But do you see stimulus triggering outsized growth for Coty again?

恭喜您在上半場取得了令人印象深刻的成績，但您似乎假設了急劇減速。能細分一下數量和價格嗎？是否有額外的門或商店空間？更具體地說，您是否看到香水指數暫停，特別是在您的名牌香水中，現在談論 25 財年還為時過早。但您是否認為刺激措施會再次引發科蒂的大幅成長？

I take the first part and I take the fragrance...

我拿了第一部分，我拿了香水...

I can take it. And I want to be very clear, there is no deceleration. So we are talking about normalization and again, to remind the numbers that shared. I mean, definitely, what we are seeing is a Prestige fragrance market being in the mid- to high single digit. Definitely Coty will continue to overperform this market. And then on Consumer Beauty, the assumptions we are making is low single digit to mid-single digit. And here also considering that Coty can really has the same dynamic.

我可以接受。我想非常明確的是，沒有減速。因此，我們再次討論標準化，以提醒共享的數字。我的意思是，毫無疑問，我們所看到的是高級香水市場處於中高個位數。毫無疑問，科蒂將繼續跑贏市場。然後在消費者美容方面，我們所做的假設是低個位數到中個位數。這裡也考慮到科蒂確實具有相同的動力。

So there is no pause in fragrance index. The fragrance index is fully at play. And you see definitely, I mean all the elements that to share is really that there is really appetite for premiumization -- you see the premium high end is really booming. There are really -- penetration keeps growing in the U.S. and in China. So this is, I can tell you, still a huge white space. So definitely, there is still a lot to expect on fragrance index. So it's -- so it will continue, and that's why we remain fully confident on [orders on] for H2 fiscal '24 and beyond for fiscal '25 and again beyond.

所以香味指數沒有停頓。香味指數充分發揮。你肯定會看到，我的意思是，所有要分享的元素確實是對高端化的真正興趣——你會看到高端高端市場確實正在蓬勃發展。在美國和中國，滲透率確實在不斷增長。所以，我可以告訴你，這仍然是一個巨大的空白。所以可以肯定的是，香水指數仍然有很多值得期待的地方。因此，這種情況將繼續下去，這就是為什麼我們對 24 財年下半年及以後、25 財年及以後的[訂單]充滿信心。

Our next question will come from Lauren Lieberman with Barclays.

我們的下一個問題將來自巴克萊銀行的勞倫·利伯曼。

I was hoping we could go back to your original sales growth algorithm build to get to the 6% to 8% over time. Just curious if the drivers are still the same as the Prestige fragrance category normalizes as you've described. So historically, you've talked about 25% to 30% CAGR on skin care and Prestige cosmetics and then mid-singles on Consumer Beauty.

我希望我們能夠回到最初的銷售成長演算法構建，隨著時間的推移達到 6% 到 8%。只是好奇驅動程式是否仍然與您所描述的 Prestige 香水類別正常化相同。從歷史上看，您談到了護膚品和高端化妝品的複合年增長率為 25% 到 30%，然後是消費美容品的中單品。

And just kind of given the flattish volume in Consumer Beauty, the more tempered language on skin care. And I would be curious to hear what tweaking to accommodate changes mean. I was just curious how you're thinking about the building blocks for that 6% to 8%?

鑑於消費美容領域的銷售平淡，護膚方面的語言更加溫和。我很想知道調整以適應變化意味著什麼。我只是好奇你是如何考慮 6% 到 8% 的基礎的？

So indeed, first of all, I mean, we confirm indeed is midterm algorithm, so 6% to 8%. What we are really controlling tightly is really to make sure that it's really a balanced growth indeed between volume, mix and pricing. So as I've just explained, you understand that now we are shifting more from pricing to mix, okay? So this is definitely what we are balancing.

所以確實，首先，我的意思是，我們確認確實是中期演算法，所以 6% 到 8%。我們真正嚴格控制的是確保銷售量、產品組合和定價之間真正實現平衡成長。正如我剛才所解釋的，您知道現在我們正在從定價轉向組合，好嗎？所以這絕對是我們正在平衡的。

But definitely on volumes, our algorithm is really -- we continue to have volume growth. And again, all the innovation that we have just shared and that we will continue, of course, our volume drivers. So indeed, volume drivers, volume growth on Prestige. On Consumer Beauty, definitely, we focus a lot on the mix management. And again, same example, the innovation that we have just announced, as you understand, they are very -- they are improving the mix. And on volumes, I would say we are more assuming flat volumes on Consumer Beauty.

但就銷量而言，我們的演算法確實是——我們的銷量持續成長。再說一次，我們剛剛分享的所有創新，當然我們將繼續我們的銷售驅動力。事實上，銷售驅動因素、Prestige 的銷售成長。在消費者美容方面，我們當然非常關注組合管理。再說一遍，同樣的例子，我們剛剛宣布的創新，正如你所理解的，他們正在改善組合。在銷售方面，我想說我們更傾向於假設消費美容銷售持平。

So you see -- so the model is more or less the same as we have always shared. And again, I mean, we are still seeing a lot of white space in fragrance, definitely, as I explained, with -- thanks to penetration, premiumization. I mean ultra-premium is a huge opportunity. And on Consumer Beauty, so in our algorithm, and we explained, we have also a lot of white space in Consumer Beauty. We shared and we highlighted all the great work that we are doing in Brazil but also, we have plans really on the emerging markets where our brands are at the right equity and the right positioning really to catch some market share.

所以你看，這個模型或多或少跟我們一直分享的相同。我的意思是，我們仍然在香水領域看到很多空白，正如我所解釋的那樣，這肯定是由於滲透率和高端化。我的意思是超高端是一個巨大的機會。在消費者美容方面，在我們的演算法中，我們解釋過，在消費者美容方面我們也有很多空白。我們分享並強調了我們在巴西所做的所有出色工作，但我們也確實在新興市場制定了計劃，在這些市場中，我們的品牌擁有適當的資產和正確的定位，確實可以抓住一些市場份額。

So our model is perfectly on track. And indeed, with this balance, we keep repeating this balanced portfolio and balance geographical growth.

所以我們的模型完全步入正軌。事實上，透過這種平衡，我們不斷重複這種平衡的投資組合和平衡的地理成長。

Great. And then just a follow-up on the skincare commentary in the release, I think it was very pointed to sort of -- I think the quote "tweaking to accommodate changes in the dynamic skin care market." So just curious what that means and things still on track to double the business. I think it was by fiscal '26 is the target, but please correct me if that's the wrong date.

偉大的。然後是對發布中的護膚評論的後續，我認為它非常尖銳 - 我認為引用“調整以適應動態護膚市場的變化”。所以只是好奇這意味著什麼，而且業務仍有望翻倍。我認為目標是到 26 財年，但如果日期錯誤，請糾正我。

So Lauren, this is Sue speaking. Skincare is still our biggest opportunity ever, both in terms of growth, in terms of white space, in terms of profitability, et cetera, et cetera. We have 3 fantastic brands operating exactly where the skincare market is growing today and will grow tomorrow, Ultra Premium, brands that are really rooted into premium market and of course, brands that are more towers Gen Z, millennials such as (inaudible). So with these 3 brands, we really mapped the market in a very nice way.

勞倫，我是蘇。護膚品仍然是我們有史以來最大的機會，無論是在成長、空白空間、獲利能力等方面。我們有3 個出色的品牌，它們的運營正是在護膚市場今天增長並將明天增長的地方，Ultra Premium 是真正紮根於高端市場的品牌，當然，還有更多Z 世代、千禧一代（聽不清）的品牌。因此，透過這三個品牌，我們確實以非常好的方式繪製了市場圖。

The other element that's very important is that when I saw how much we are overperforming in fragrances, how much we are doing the right things in this area, which is growing the business of the company. I decided intentionally to slow down our skin care openings, okay? I want to do it perfectly, and this is the best news is, I may say, of the year. It's not to go fast is to do the right thing. And as I love to say, what takes time is expected by time. It's not going to take an endless time. It's going to take the right time.

另一個非常重要的因素是，當我看到我們在香水領域表現出色時，我們在這個領域做了多少正確的事情，這正在成長公司的業務。我決定故意放慢我們的護膚開放，好嗎？我想完美地做到這一點，我可以說，這是今年最好的消息。不是走快就是做對的事。正如我喜歡說的，需要時間的事情都是時間所期待的。這不會花費無盡的時間。這需要正確的時間。

So don't expect us to change our strategy in Skin Care, its still the #1 obsession of the company for the next years. It's a very important part of the growth algorithm of the company. But the good news is that today, we can do without this growth that we have been mapping 2 years ago. And it's very good news, specifically when we see how some players in this area have been hit by other promotionality becoming [Daigou] [Fed rates], et cetera. We don't want to go there again, you see what I mean. So when you don't use these levers it takes a bit more time, but it's healthier and better in terms of brand equity protection.

因此，不要指望我們會改變我們在皮膚護理方面的策略，它仍然是公司未來幾年的第一大關注點。這是公司成長演算法中非常重要的一部分。但好消息是，今天我們可以不需要兩年前繪製的成長圖。這是一個非常好的消息，特別是當我們看到該領域的一些參與者如何受到其他促銷活動的打擊，成為[代購][美聯儲利率]等。我們不想再去那裡了，你明白我的意思。因此，當你不使用這些槓桿時，會花費更多的時間，但在品牌資產保護方面更健康、更好。

Our next question will come from Mark Astrachan with Stifel.

我們的下一個問題將來自 Stifel 的 Mark Astrachan。

Two questions related to expectations for some slowing in the category growth, particularly on the Prestige side. I guess, one, why increase inventory for the working capital commentary, if you think category growth is going to slow, especially heading into a period of traditionally smaller sales in the back half of your fiscal year. And related, what gives confidence that retailer inventories on that prestige side are balanced or in the right spot today given that your sales have exceeded consumer takeaway in the Prestige business in recent quarters?

有兩個問題與品類成長放緩的預期有關，尤其是在聲望方面。我想，第一，如果你認為品類成長將會放緩，特別是進入財政年度後半段傳統上銷售量較小的時期，為什麼要增加營運資金評論的庫存呢？與此相關的是，考慮到您最近幾季在信譽業務中的銷售額已經超過了消費者的收入，是什麼讓您相信零售商在信譽方面的庫存是平衡的或處於正確的位置？

Thank you, Mark. So again, I want to be -- to repeat again. I mean it's not slowing in Prestige fragrance category. It's really normalization. And just to reiterate that mid- to high single-digit fragrance of both categories. I mean, it's a very robust growth and confirmed that this category is very dynamic, especially when you compare versus the trends that were existing before COVID.

謝謝你，馬克。所以，我想再重複一次。我的意思是，高級香水類別的成長並沒有放緩。這確實是常態化。只是重申這兩個類別的中高個位數香水。我的意思是，這是一個非常強勁的成長，並證實了這個類別非常有活力，特別是當你與新冠疫情之前存在的趨勢進行比較時。

So on inventory, I can tell you that we are absolutely in control on our inventory with our supply chain with very strong forecast accuracy. So we are running our business in a very intelligent manner. Definitely, we made a decision at the moment to increase inventory. Clear example is Burberry Goddess. I can tell you Burberry Goddess #1 innovation on the market. the biggest ever launch at Coty. So definitely, we make sure, especially because we started this project more than a year ago.

所以在庫存方面，我可以告訴你，我們的供應鏈完全控制著我們的庫存，預測的準確性非常高。因此，我們正在以非常明智的方式經營我們的業務。當然，我們當時做出了增加庫存的決定。明顯的例子就是Burberry Goddess。我可以告訴你 Burberry Goddess 是市場上排名第一的創新。這是科蒂有史以來規模最大的一次發布。所以，我們肯定會這樣做，特別是因為我們一年多前就開始了這個計畫。

In a context where supply chain was still challenged. We make sure, of course, that we have sufficient components, sufficient products, of course, to have a very good service level and you see now the service level is that -- is 96% and even with the very big launches, which is the case in fragrance, but also impressive, but also in consumer beauty. So we have very, very tight control on the inventory. Then on the retailer side, I can tell you that the level of inventory that we have across our markets, across our retailers is very healthy.

在供應鏈仍面臨挑戰的背景下。當然，我們確保我們有足夠的組件、足夠的產品，當然，要有非常好的服務水平，你現在看到的服務水平是——96%，即使是非常大的發布，這是如此，在香水方面，也令人印象深刻，而且在消費者美容方面。所以我們對庫存的控制非常非常嚴格。然後在零售商方面，我可以告訴你，我們整個市場、整個零售商的庫存水準非常健康。

We are really tracking sell-out and sell-in. And indeed, as you can see in our numbers, that are [set out] is ahead of the market. So this is really -- and we are really making sure with each market, all the teams that -- there is no inventory that inventory at retailer side is very, very healthy. And again, the discipline that Sue is referring to, this is definitely a big, big part of the discipline we have put in place, and we continue to manage with equity.

我們確實在追蹤銷售情況和銷售情況。事實上，正如您在我們的數據中看到的那樣，[列出]領先於市場。所以這確實是——我們確實在每個市場、所有團隊中確保——沒有庫存，零售商方面的庫存非常非常健康。再說一次，蘇所指的紀律，這絕對是我們所實施的紀律的一個很大很大的一部分，我們將繼續以公平的方式進行管理。

Thank you, everyone. So again, as you can imagine, we are really very proud about this [14th] quarter of reserves that are in line so ahead of both guidance and expectations. It's 3.5 years already. That, I would say, an achievement. And of course, we are here to continue this trajectory. So looking forward to seeing all of you in CAGNY within 2 weeks. Thank you very much.

謝謝大家。因此，正如您可以想像的那樣，我們對本[第 14] 個季度的準備金感到非常自豪，這些準備金遠遠超出了指導和預期。已經3.5年了。我想說，這是一項成就。當然，我們來這裡是為了延續這個軌跡。期待兩週後在 CAGNY 見到大家。非常感謝。

This does conclude today's Coty Second Quarter Fiscal 2024 Question-and-Answer Conference Call. You may disconnect your line at this time, and have a wonderful day.

今天的科蒂 2024 財年第二季問答電話會議到此結束。此時您可以斷開線路，度過美好的一天。