卡洛馳 (CROX) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Crocs' Second Quarter 2023 Earnings Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Cori Lin. Please go ahead.

早上好，歡迎參加 Crocs 2023 年第二季度財報電話會議。 （操作員說明）請注意此事件正在被記錄。我現在想把會議交給 Cori Lin。請繼續。

Good morning, everyone, and thank you for joining us today for the Crocs Inc. Second Quarter 2023 Earnings Call. Earlier this morning, we announced our latest quarterly results, and a copy of the press release may be found on our website at crocs.com. We would like to remind you that some of the information provided on this call is forward-looking and accordingly is subject to the safe harbor provisions of the federal securities laws. These statements include, but are not limited to, statements regarding our supply chain challenges, cost inflation, the acquisition of HEYDUDE and the benefits thereof, Crocs' strategy, plans, objectives, expectations, financial or otherwise and intentions, future financial results and growth potential, anticipated product portfolio, our ability to create and deliver shareholder value and statements regarding potential impacts to our business related to the COVID-19 pandemic. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Crocs is not obligated to update these forward-looking statements to reflect the impact of future events, except as required by applicable law. We caution you that all forward-looking statements are subject to risks and uncertainties described in the Risk Factors section of our annual report on Form 10-K and our subsequent filings with the SEC. Accordingly, actual results could differ materially from those described on this call. Please refer to Crocs' annual report on Form 10-K as well as other documents filed with the SEC for more information relating to these risk factors. Certain financial metrics that we refer to as adjusted or non-GAAP are non-GAAP measures. A reconciliation of these amounts to their GAAP conference is contained in the press release we issued earlier this morning. Joining us on the call today are Andrew Rees, Chief Executive Officer; and Anne Mehlman, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions. At this time, I'll turn the call over to Andrew.

大家早上好，感謝您今天參加 Crocs Inc. 2023 年第二季度財報電話會議。今天早上早些時候，我們公佈了最新的季度業績，您可以在我們的網站 crocs.com 上找到新聞稿的副本。我們想提醒您，本次電話會議中提供的一些信息是前瞻性的，因此受到聯邦證券法安全港條款的約束。這些聲明包括但不限於有關我們的供應鏈挑戰、成本通脹、收購 HEYDUDE 及其收益、Crocs 的戰略、計劃、目標、預期、財務或其他方面和意圖、未來財務業績和增長的聲明潛在的、預期的產品組合、我們創造和交付股東價值的能力以及有關 COVID-19 大流行對我們業務的潛在影響的聲明。這些陳述涉及已知和未知的風險、不確定性和其他因素，可能導致我們的實際結果、業績或成就與前瞻性陳述明示或暗示的任何未來結果、業績或成就存在重大差異。 Crocs 沒有義務更新這些前瞻性陳述以反映未來事件的影響，除非適用法律要求。我們提醒您，所有前瞻性陳述均受到我們 10-K 表格年度報告以及隨後向 SEC 提交的文件中風險因素部分所述的風險和不確定性的影響。因此，實際結果可能與本次電話會議中描述的結果存在重大差異。請參閱 Crocs 的 10-K 表格年度報告以及向 SEC 提交的其他文件，了解有關這些風險因素的更多信息。我們稱為調整後或非 GAAP 的某些財務指標是非 GAAP 指標。我們今天早上早些時候發布的新聞稿中包含了這些金額與公認會計原則會議的調節表。今天加入我們電話會議的是首席執行官安德魯·里斯 (Andrew Rees)；執行副總裁兼首席財務官 Anne Mehlman。在他們準備好的發言之後，我們將開始電話詢問您的問題。這個時候，我會把電話轉給安德魯。

Thank you, Cori, and good morning, everyone. I'm incredibly pleased with our second quarter results. We delivered record quarterly revenues of over $1 billion. The Crocs and HEYDUDE brands continue to perform extremely strongly as evened by 26% direct-to-consumer revenue growth. We gained appreciable market share, and once again, delivered industry-leading profitability with 30% operating margins. Anne will review our financial results in more detail shortly, but here are a few highlights from the second quarter. Revenues of over $1 billion grew 12% on a constant currency basis. Crocs brand revenues grew at 15% constant currency, fueled by Asian revenues increasing 39% and global DTC comparable sales rising 20%. The Crocs brand continues to gain market share in North America with revenues up 13%, driven by sandals and new product introductions. HEYDUDE brand revenues were $239 million with exceptional DTC growth of 30% and digital growth of 37% constant currency. Adjusted diluted earnings per share increased 11% to $3.59 per share. Gross leverage ended at 1.8% and net leverage was 1.7x at quarter end, allowing us to repurchase $50 million of shares in July.

謝謝你，科里，大家早上好。我對我們第二季度的業績非常滿意。我們創下了超過 10 億美元的季度收入記錄。儘管直接面向消費者的收入增長了 26%，Crocs 和 HEYDUDE 品牌的表現仍然極其強勁。我們獲得了可觀的市場份額，並再次以 30% 的營業利潤率實現行業領先的盈利能力。安妮很快將更詳細地審查我們的財務業績，但以下是第二季度的一些亮點。按固定匯率計算，收入超過 10 億美元，增長 12%。 Crocs 品牌收入按固定匯率計算增長了 15%，這得益於亞洲收入增長 39% 和全球 DTC 可比銷售額增長 20%。在涼鞋和新產品推出的推動下，Crocs 品牌在北美的市場份額繼續擴大，收入增長了 13%。 HEYDUDE 品牌收入為 2.39 億美元，按固定匯率計算，DTC 增長 30%，數字增長 37%。調整後稀釋每股收益增長 11%，達到每股 3.59 美元。季末總槓桿率為 1.8%，淨槓桿率為 1.7 倍，這使我們能夠在 7 月份回購 5000 萬美元的股票。

Finally, Cross Inc. was named to the Time 100 Most Influential Companies for 2023. In summary, we had an excellent quarter, and our teams globally remains focused on driving brand health, market share gains and profitable growth in the back half of the year. I would now like to provide updates for each of our brands. The Crocs brands delivered strong revenue growth since 2018, as we build both clog and brand relevance across the globe. This past quarter, our product and marketing efforts continue to deliver newness and excitement to the current brand (inaudible), while simultaneously reaching new consumers who may not have considered our brand in the past. With respect to product innovation, we're diversifying our clog offering and growing samples. We've seen significant success with a number of high-orientated new clog introductions, including the Crush, Megacrush and more recently, the Siren. In addition, our recent launch of Dylan, a more elevated and fashion-forward clog is very encouraging.

最後，Cross Inc. 被評為 2023 年《時代》雜誌 100 家最具影響力公司。總而言之，我們度過了一個出色的季度，我們的全球團隊在下半年仍致力於推動品牌健康、市場份額增長和利潤增長。我現在想為我們每個品牌提供最新信息。自 2018 年以來，隨著我們在全球範圍內建立木鞋和品牌相關性，Crocs 品牌實現了強勁的收入增長。上個季度，我們的產品和營銷工作繼續為當前品牌帶來新鮮感和興奮感（聽不清），同時吸引過去可能沒有考慮過我們品牌的新消費者。在產品創新方面，我們正在使木鞋產品多樣化並增加樣品。我們已經看到許多高定位的新木鞋的推出取得了巨大成功，包括 Crush、Megacrush 以及最近的 Siren。此外，我們最近推出的 Dylan 木鞋更加高端、時尚，非常令人鼓舞。

The Echo continues to outperform our initial expectations, and personalization continues to drive global relevance for the classic. Turning to sandals. As we have shared, this category is an important growth initiative for Crocs, allowing us to expand into the adjacent $30 billion global saddle category, where we believe our molded technologies, accessible price points, strong go-to-market will allow us to compete effectively in a relatively fragmented market. We're excited by our incredible sound performance, where revenues grew 34% compared to Q2 last year and 40% growth on a trailing 12-month basis. Growth was robust in all regions, driven by our diversified sandal offerings, new product introductions and robust marketing calendar.

Echo 的表現繼續超出我們最初的預期，個性化繼續推動經典產品的全球影響力。轉向涼鞋。正如我們所分享的，這個類別是 Crocs 的一項重要增長舉措，使我們能夠擴展到鄰近的價值 300 億美元的全球馬鞍類別，我們相信我們的模壓技術、平易近人的價格點、強大的市場准入將使我們能夠在競爭中脫穎而出在相對分散的市場中有效。我們對我們令人難以置信的良好表現感到興奮，與去年第二季度相比，收入增長了 34%，在過去 12 個月的基礎上增長了 40%。在我們多樣化的涼鞋產品、新產品推出和強勁的營銷日曆的推動下，所有地區的增長都強勁。

The Classic and Brooklyn continues to be our leading sound of franchises. In addition, the more recent Mellow and Crush introductions have been extremely successful and are also top-selling styles. We will continue to drive sandal awareness and customer acquisition with activations such as the new Pollex slide with Salehe Bembury. Overall, we're pleased with the (inaudible) trajectory. I'm very confident that sandal revenues will grow to in excess of $400 million this year. From a collaboration perspective, we announced plans for a 2-year partnership with Salehe Bembury, who will serve as creative director of the Crocs x Pollex pog to introduce innovative new styles.

《經典》和《布魯克林》仍然是我們特許經營的主要聲音。此外，最近推出的 Mellow 和 Crush 也非常成功，也是最暢銷的款式。我們將繼續通過與 Salehe Bembury 合作的新型 Pollex 拖鞋等活動來提高涼鞋意識和客戶獲取。總的來說，我們對（聽不清）的軌跡感到滿意。我非常有信心今年涼鞋收入將增長到超過 4 億美元。從合作的角度來看，我們宣布計劃與 Salehe Bembury 建立為期 2 年的合作夥伴關係，他將擔任 Crocs x Pollex pog 的創意總監，推出創新的新款式。

This quarter, we introduced the Pollex slide, which sold out instantly and provided a halo for our sandal offerings globally. More recently, we partnered with Rapper, Lil Nas X to showcase our high collection such as Siren and Crush. During Paris Fashion Week, we took over the same Mercy pop-up space. Other marketing highlights from the quarter include our Mellow slide with Taco Bell, a close collaboration with Parisian running brand, Saitsfy, and a slide and clog partnership with Korean food brand, Ottogi. Finally, this month, our Barbie collection featuring clogs, sandals and Jibbitz quickly sold out ahead of the blockbuster movie launch last weekend. Asia is another important long-term growth driver for the Crocs brand, as the brand is currently underpenetrated relative to here in the U.S.

本季度，我們推出了 Pollex 拖鞋，立即售空，為我們的全球涼鞋產品增添了光環。最近，我們與說唱歌手 Lil Nas X 合作，展示了我們的高級系列，例如《Siren》和《Crush》。在巴黎時裝週期間，我們接管了同一個 Mercy 快閃店。本季度的其他營銷亮點包括我們與 Taco Bell 的 Mellow 滑梯、與巴黎跑步品牌 Saitsfy 的密切合作，以及與韓國食品品牌 Ottogi 的滑梯和木底鞋合作。最後，本月，我們的芭比娃娃系列（包括木鞋、涼鞋和 Jibbitz）在上週末大片上映之前迅速售空。亞洲是 Crocs 品牌的另一個重要的長期增長驅動力，因為該品牌目前相對於美國的滲透率較低。

In Q2, Asia revenues grew by 39% constant currency. Growth was again broad-based with strong brand momentum throughout the region, including China, Australia, South Korea and Southeast Asia. We're particularly encouraged by another exceptional quarter of growth in China, where Q2 revenues increased over 100% ahead of our expectations and one more sign of the potential within this market. The leadership team and I had the opportunity to visit China in June for the first time in 3 years, and it was wonderful to see how much the brand has grown. We met with our partners, suppliers and visited many stores. We've been deploying the same playbook we have used globally, including influences, collaborations and personalization. We partnered with local celebrities, including Bai Jingting and Zhou Yutong to style collaborations and products in their own authentic way. Crocs creations by 4 emerging Chinese designers from fashion incubator Labelhood were featured at Shanghai Fashion Week. And give us our vehicle to self-expression continues to surprise and delight consumers and create great excitement in our stores. Crocs' rising popularity in China has created a passionate following with a hashtag known as (inaudible) for Crocs's followers. On RED, a leading Chinese social app, topics related to Crocs have accumulated over 310 million views. During the popular mid-season festival in June, Crocs sales ranked second on Tmall within casual footwear brands. In Douyin, Chinese TikTok, we rank first in sales during mid-season festival. In summary, we're incredibly excited by the Crocs brand momentum in China and are even more confident about the potential for the Crocs brand in the second-largest footwear market in the world. Now to HEYDUDE. We're incredibly pleased with the exceptional DTC growth of 30% and constant currency digital growth of 37%. Our products and marketing innovation is driving new customer acquisition and is growing awareness on the coasts. Our e-commerce data demonstrates that Q2 revenues of both the East and West Coast increased 45% compared to last year. New product introductions, which range from new colors to new silhouettes are driving excitement. Our Americana styles were top sellers ahead of Memorial Day and 4th of July holidays amongst men, women and kids.

第二季度，按固定匯率計算，亞洲收入增長了 39%。整個地區（包括中國、澳大利亞、韓國和東南亞）的品牌勢頭強勁，實現了廣泛的增長。我們對中國又一個出色的季度增長感到特別鼓舞，第二季度收入增長超過我們的預期 100% 以上，這是該市場潛力的又一個跡象。我和領導團隊有機會在 6 月份訪問中國，這是三年來的第一次，很高興看到這個品牌的成長。我們會見了我們的合作夥伴、供應商並參觀了許多商店。我們一直在部署與全球使用的相同的策略，包括影響、協作和個性化。我們與白敬亭和周雨彤等當地名人合作，以他們自己的真實方式設計合作產品和產品。來自時尚孵化器Labelhood的四位中國新銳設計師的Crocs作品在上海時裝週上亮相。為我們提供自我表達的工具，繼續為消費者帶來驚喜和愉悅，並在我們的商店中創造巨大的興奮。卡駱馳 (Crocs) 在中國的受歡迎程度不斷上升，吸引了一批熱情的追隨者，卡駱馳 (Crocs) 追隨者的主題標籤為“（聽不清）”。在中國領先的社交應用小紅書上，與 Crocs 相關的話題已累計超過 3.1 億次瀏覽。 6月中秋節期間，Crocs在天貓休閒鞋品牌中銷量排名第二。在抖音，我們的中秋節銷售額排名第一。總而言之，我們對 Crocs 品牌在中國的發展勢頭感到無比興奮，並對 Crocs 品牌在全球第二大鞋類市場的潛力更有信心。現在輪到海杜德了。我們對 DTC 30% 的出色增長和 37% 的固定貨幣數字增長感到非常滿意。我們的產品和營銷創新正在推動新客戶的獲取，並在沿海地區提高知名度。我們的電商數據顯示，第二季度東西海岸的收入比去年增長了 45%。新產品的推出，從新顏色到新輪廓，都令人興奮不已。在陣亡將士紀念日和 7 月 4 日假期之前，我們的美式風格在男士、女士和兒童中都是最暢銷的。

As a demonstration of our test-and-learn approach, this year, our Americana selection featured over 20 patents and colors, building on the early success we saw last year. The new Wally and Wendy Funk and Washed Canvas styles have performed strongly in both DTC and wholesale. And our efforts to expand the brand beyond the iconic Wally and Wendy within sneakers are off to a great start. The Karina for women and the newly introduced Sirocco sold out quickly, and we're in the process of getting them back in stock. On the marketing front, we focused on enhancing brand awareness. We launched our first-ever HEYDUDE collaboration this quarter with outdoor lifestyle brand Maceoo, and we saw a great sell-through. We've also started to see our back-to-campus collection on social channels and look forward to launching our collection, featuring colleges from the Southeastern Conference or SEC in September. Finally, with respect to wholesale revenues, as we discussed in June, the last part of last year's revenue related to pipeline fill for some of our used strategic alliance partners. We estimate pipeline fill was $70 million for the second quarter of last year and $220 million in fiscal '22. This pipeline fill was very conscious decision in our part to secure self-space, knowing there will be competition in the marketplace. Adequate consumer takeaway for the brand, across all channels, we estimate to be up approximately 27% during Q2 2023 based on over 80% increase in our strategic alliance accounts, shrinkage in our nonstrategic wholesale accounts and 30% DTC growth.

為了展示我們的測試和學習方法，今年，我們在去年取得的早期成功的基礎上，選擇了 20 多項美國專利和顏色。新的 Wally 和 Wendy Funk 和 Washed Canvas 款式在 DTC 和批發市場上均表現強勁。我們將品牌擴展到運動鞋領域標誌性的 Wally 和 Wendy 之外的努力已經有了一個良好的開端。女式 Karina 和新推出的 Sirocco 很快就賣完了，我們正在重新補貨。在營銷方面，我們注重提升品牌知名度。本季度我們推出了與戶外生活方式品牌 Maceoo 的首次合作 HEYDUDE，銷量非常好。我們還開始在社交渠道上看到我們的返校系列，並期待在 9 月份推出我們的系列，其中包括來自東南聯盟或 SEC 的大學。最後，關於批發收入，正如我們在 6 月份討論的那樣，去年收入的最後一部分與我們一些使用的戰略聯盟合作夥伴的管道填充相關。我們估計去年第二季度的管道填充量為 7000 萬美元，22 財年的管道填充量為 2.2 億美元。這種管道填充是我們非常有意識的決定，以確保自我空間，因為我們知道市場上會有競爭。基於我們的戰略聯盟賬戶增長超過 80%、非戰略批發賬戶縮減以及 DTC 增長 30%，我們預計該品牌在所有渠道的消費者收益在 2023 年第二季度將增長約 27%。

Retail tracking service data from Circana, formerly NPD indicates that HEYDUDE rose from the #15 in fashion footwear brand in Q2 of last year to #8 in Q2 of this year based on U.S. sales. As we look towards the remainder of the year for HEYDUDE, we are lowering our outlook for revenues. Wholesale growth is expected to be low. As we outlined in June, there is $220 million in noncomparable sales last year due to the rapid expansion to major U.S. strategic customers and the discontinuation of relationships with some smaller customers. Since plan, while our wholesale partners are very pleased with the performance of HEYDUDE and a number have called us out in their recent earnings, many are cautious in terms of future bookings based on their overall market outlook and lack of historical data on HEYDUDE's performance. Finally, as we previously shared, we anticipate constrained distribution capabilities, particularly related to (inaudible) in the back half of the year due to ERP and warehouse transitions. Even with this lower near-term revenue outlook, the HEYDUDE brand is acquiring new customers and is gaining penetration in strategic accounts and on the coasts. We remain incredibly optimistic about the long-term potential of the brand on a global basis.

Circana（前身為 NPD）的零售跟踪服務數據顯示，根據美國銷售額，HEYDUDE 從去年第二季度的時尚鞋履品牌排名第 15 位上升至今年第二季度的第 8 位。當我們展望 HEYDUDE 今年剩餘時間時，我們降低了收入預期。批發增長預計較低。正如我們在 6 月份所概述的，由於向美國主要戰略客戶的快速擴張以及與一些較小客戶的關係的終止，去年的不可比銷售額為 2.2 億美元。自計劃以來，雖然我們的批發合作夥伴對 HEYDUDE 的表現非常滿意，並且一些人在他們最近的收益中對我們提出了批評，但許多人基於他們的整體市場前景和缺乏 HEYDUDE 表現的歷史數據，對未來的預訂持謹慎態度。最後，正如我們之前所分享的，我們預計配送能力將受到限制，尤其是由於 ERP 和倉庫轉型而導致今年下半年（聽不清）。即使近期收入前景較低，HEYDUDE 品牌仍在吸引新客戶，並在戰略客戶和沿海地區獲得滲透。我們對該品牌在全球範圍內的長期潛力仍然非常樂觀。

Finally, turning to digital for both brands. We saw exceptional 21% constant currency growth driven by new product introductions that are resonating well with consumers globally. For the Crocs brand, the app is rapidly scaling and gaining consumer traction, reaching penetration over 20% in South Korea. In the U.S., we continue to be excited by our launch of customization and on our site now offering an online configurator for organizations to design custom clogs and Jibbitz. Our global CRM database is also accelerating in key markets with the expansion of programs like SMS and the app. As we mentioned last quarter, to gain better control of our brand and realize higher ASP, we anticipate transitioning some of our Crocs' e-tail business that sits in our wholesale segment to a direct digital sale, both on crocs.com as well as marketplaces where we were directly -- where we sell directly to the consumer. This will result in lower wholesale sales and higher DTC sales. For HEYDUDE, we're investing in digital capabilities, such as enhanced site experience, payment offerings to improve the customer journey. We're also scaling our digital marketing investments to acquire and retain new customers. These efforts, coupled with new product introductions have led to strong growth rates across all our digital channels, including being a top-performing brand during Amazon's recent Prime Day. Overall, our digital-first approach is working and is driving strong growth globally. In summary, we have tremendous confidence in and clear evidence as to the underlying strength and growth potential of both the Crocs and HEYDUDE brands. Sell-through from both of our brands continues to be robust, and we believe we're benefiting from our democratic price points and gaining share in a difficult market. I will now turn the call over to Anne for a review our financial – second quarter financial results in more detail.

最後，兩個品牌都轉向數字化。在新產品推出的推動下，我們實現了 21% 的持續匯率增長，這些新產品引起了全球消費者的共鳴。對於 Crocs 品牌來說，該應用程序正在迅速擴大規模並吸引消費者，在韓國的滲透率已超過 20%。在美國，我們繼續對定制服務的推出感到興奮，現在我們的網站上提供了一個在線配置器，供組織設計定制木鞋和 Jibbitz。隨著 SMS 和應用程序等程序的擴展，我們的全球 CRM 數據庫也在主要市場加速發展。正如我們上季度提到的，為了更好地控制我們的品牌並實現更高的平均售價，我們預計將批發部門中的一些 Crocs 電子零售業務轉變為直接數字銷售，無論是在 crocs.com 上還是在 crocs.com 上。我們直接所在的市場——我們直接向消費者銷售產品的地方。這將導致批發銷量下降和 DTC 銷量上升。對於 HEYDUDE，我們正在投資數字化能力，例如增強的網站體驗、改善客戶旅程的支付服務。我們還擴大了數字營銷投資，以獲取和留住新客戶。這些努力，加上新產品的推出，使我們所有數字渠道實現了強勁的增長率，包括在亞馬遜最近的 Prime Day 期間成為表現最佳的品牌。總體而言，我們的數字優先方法正在發揮作用，並正在推動全球強勁增長。總之，我們對 Crocs 和 HEYDUDE 品牌的潛在實力和增長潛力充滿信心，並有明確的證據。我們兩個品牌的銷售量繼續保持強勁，我們相信我們正在從我們的民主價格點中受益，並在困難的市場中獲得份額。我現在將把電話轉給安妮，讓她更詳細地審查我們的財務狀況——第二季度的財務業績。

Thank you, Andrew, and good morning, everyone. I will begin with a short recap of our second quarter results. All revenue growth rates will be cited on a constant currency basis unless otherwise stated. For a reconciliation of the non-GAAP amounts mentioned to their equivalent GAAP amounts, please refer to this morning's press release. We had an excellent second quarter with over $1 billion in consolidated revenues, representing 12% year-on-year growth. We delivered another quarter of industry-leading profitability with adjusted gross margin of 58.1%, adjusted operating margin of 30.3% and adjusted diluted EPS growth of 10.8%. Our portfolio is diversified from a brand, channel and geography perspective. On a trailing 12-month basis and in Q2, HEYDUDE brand revenues were 26% of total revenue. Channel mix was well balanced with wholesale revenues representing 54% of trailing 12-month revenues and DTC at 46%. Finally, approximately 31% of total TTM revenues and 40% of Crocs brand TTM revenue were from international markets. During the second quarter, Crocs' brand revenues were $833 million, growing 14.9% to prior year and driven by strong DTC growth of 26.8%. The brand sold 33 million pairs of shoes, an increase of 1.8%. The Crocs' brand average selling price during Q2 was $25, which was up 12.8% on a constant currency basis, driven by the price increases and fewer DTC promotions internationally. Within the Crocs brand, clogs grew double digits and continue to generate demand with newer products such as Echo, Crush and Dylan. Sandals, an important growth pillars for the future, increased 34% in Q2 with growth in all regions to represent 16% of Crocs' brand sales. Finally, Jibbitz continues to create excitement and engagement with consumers around the world, growing 13% from last year of strong growth internationally. Now let's discuss a few Crocs' brand highlights by region. In North America, second quarter revenues increased 12.5% to $475 million, and first half revenues increased to 11.5%. We gained significant market share in a declining U.S. footwear market. The North America, DTC channel for the Crocs brand, an indicator of underlying consumer demand, was a key growth driver with DTC comparable sales of 12.9%. Wholesale revenues were also robust, increasing 5.5% despite a more challenging wholesale environment. Asia Pacific delivered significant growth as we execute on our long-term growth plan to unite the brand in the region. Crocs' brand Q2 revenues in Asia grew 39% to $198 million, and growth was broad-based across countries and channels. China and Australia led to growth with revenues increasing over triple digits, while South Korea and Southeast Asia also had strong double-digit growth. Crocs' brand revenues for EMEALA were $160 million, a decline of 1.4% from the second quarter of 2022. As a reminder, Q2 last year benefited from a $40 million revenue shift out of Q1 following the Vietnam shutdowns. This quarter, strong growth in direct markets, including the U.K. and France as well as outstanding DTC comp growth of 38.6% was offset by a decline in distributors. In connection with the newly implemented marketplace management program in the quarter, we terminated our relationship with a significant distributor servicing Africa. This was not anticipated going into the quarter, and we terminated the relationship after finding evidence product diversion to the gray market, outside of their approved territories. This impacted revenue by $8 million in Q2 and will impact second first half revenues by $21 million. We expect EMEALA revenue growth to reaccelerate in the back half of this year. Turning to HEYDUDE, Q2 revenues were $239.4 million, an increase of 2.9% from last year. During Q2, the brand sold 8.3 million pairs of shoes, an increase of 3.6% over last year. HEYDUDE average selling price during Q2 was $28.88 or 0.6% lower than prior year due to price pressure from gray market selling on Amazon. The DTC channel, which is predominantly e-commerce, led the growth with revenues increasing 29.7% from last year. Digital sales increased 36.6% and digital penetration increased 1,000 basis points to 41.8%. As Andrew explained earlier, underlying consumer demand for the HEYDUDE brand is incredibly healthy. Consolidated adjusted gross margins for the second quarter were 58.1%, increasing 290 basis points from last year, driven by favorability in ocean freight rates and the absence of air freight that was partially offset by higher overhead and fulfillment costs associated with our HEYDUDE distribution network inefficiency. Currency negatively impacted consolidated gross margins by approximately 50 basis points. Turning to the brand. Adjusted gross margin for the Crocs brand was 62% or 410 basis points higher than prior year, reduced air freight of approximately 380 basis points, combined with lower inbound freight rates, higher prices internationally and channel mix were partially offset by product mix. Currency negatively impacted margins by 80 basis points. HEYDUDE adjusted gross margins were 47.1%, flat with prior year. We continue to see a reduction in inbound freight rates. However, this has been offset by additional inventory storage and network costs related to the transition of our subscale distribution network, combined with great market pressures on ASP and our digital channels. During the second quarter, consolidated adjusted SG&A represented 27.8% of revenues, which is 270 basis points higher than last year as we invested more in marketing and talent for both brands to support our growth trajectory and annualize additional investments for HEYDUDE.

謝謝你，安德魯，大家早上好。我將首先簡短回顧一下我們第二季度的業績。除非另有說明，所有收入增長率均按固定匯率計算。有關提及的非公認會計原則金額與其同等公認會計原則金額的調節表，請參閱今天上午的新聞稿。我們第二季度表現出色，合併收入超過 10 億美元，同比增長 12%。我們又一個季度實現了行業領先的盈利能力，調整後毛利率為 58.1%，調整後營業利潤率為 30.3%，調整後攤薄每股收益增長為 10.8%。我們的產品組合從品牌、渠道和地域的角度來看是多元化的。從過去 12 個月的數據來看，在第二季度，HEYDUDE 品牌收入佔總收入的 26%。渠道組合非常平衡，批發收入佔過去 12 個月收入的 54%，DTC 佔 46%。最後，大約 31% 的 TTM 總收入和 40% 的 Crocs 品牌 TTM 收入來自國際市場。第二季度，Crocs 品牌收入為 8.33 億美元，較上年同期增長 14.9%，這主要得益於 DTC 26.8% 的強勁增長。該品牌售出3300萬雙鞋，增長1.8%。 Crocs 第二季度的品牌平均售價為 25 美元，在國際價格上漲和 DTC 促銷活動減少的推動下，按固定匯率計算上漲了 12.8%。 Crocs 品牌中的木底鞋增長了兩位數，並且 Echo、Crush 和 Dylan 等新產品不斷產生需求。涼鞋是未來重要的增長支柱，第二季度增長了 34%，所有地區的增長佔 Crocs 品牌銷售額的 16%。最後，Jibbitz 繼續為世界各地的消費者帶來興奮和參與，與去年的國際強勁增長相比增長了 13%。現在讓我們按地區討論 Crocs 的一些品牌亮點。在北美，第二季度收入增長12.5%，達到4.75億美元，上半年收入增長11.5%。我們在不斷下滑的美國鞋類市場中獲得了顯著的市場份額。 Crocs 品牌的北美 DTC 渠道是潛在消費者需求的指標，是主要的增長動力，DTC 可比銷售額為 12.9%。儘管批發環境更具挑戰性，但批發收入也表現強勁，增長了 5.5%。隨著我們執行長期增長計劃以團結該地區的品牌，亞太地區實現了顯著增長。 Crocs 品牌第二季度在亞洲的收入增長了 39%，達到 1.98 億美元，增長在各個國家和渠道都有廣泛的基礎。中國和澳大利亞帶動了增長，收入增長超過三位數，而韓國和東南亞也出現了強勁的兩位數增長。 Crocs 在 EMEALA 的品牌收入為 1.6 億美元，較 2022 年第二季度下降 1.4%。需要提醒的是，去年第二季度受益於越南停工後第一季度收入轉移 4000 萬美元。本季度，包括英國和法國在內的直接市場的強勁增長以及 38.6% 的出色 DTC 業績增長被分銷商的下降所抵消。由於本季度新實施的市場管理計劃，我們終止了與一家為非洲提供服務的重要經銷商的關係。預計本季度不會出現這種情況，在發現產品轉移到其批准區域之外的灰色市場的證據後，我們終止了合作關係。這影響了第二季度收入 800 萬美元，並將影響下半年收入 2100 萬美元。我們預計 EMEALA 的收入增長將在今年下半年重新加速。轉向 HEYDUDE，第二季度營收為 2.394 億美元，較去年增長 2.9%。第二季度，該品牌售出 830 萬雙鞋，比去年增長 3.6%。由於亞馬遜灰色市場銷售的價格壓力，HEYDUDE 第二季度的平均售價為 28.88 美元，比去年同期低 0.6%。以電子商務為主的 DTC 渠道引領增長，收入較去年增長 29.7%。數字銷售額增長 36.6%，數字滲透率增長 1,000 個基點，達到 41.8%。正如安德魯之前所解釋的，消費者對 HEYDUDE 品牌的潛在需求非常健康。第二季度綜合調整後毛利率為 58.1%，比去年增加 290 個基點，這主要是由於海運價格優惠以及空運的缺乏所推動的，而空運則被我們的 HEYDUDE 分銷網絡效率低下帶來的管理費用和履行成本增加部分抵消了。 。貨幣對綜合毛利率產生約 50 個基點的負面影響。轉向品牌。 Crocs 品牌的調整後毛利率比上年提高 62%，即 410 個基點，空運費用減少約 380 個基點，加上入境運費較低、國際價格上漲以及渠道組合被產品組合部分抵消。匯率對利潤率產生了 80 個基點的負面影響。 HEYDUDE 調整後毛利率為 47.1%，與上年持平。我們繼續看到入境運費下降。然而，這已被與我們的小規模分銷網絡轉型相關的額外庫存存儲和網絡成本以及 ASP 和我們的數字渠道面臨的巨大市場壓力所抵消。第二季度，合併調整後的銷售、管理及行政費用佔收入的 27.8%，比去年高出 270 個基點，因為我們在兩個品牌的營銷和人才方面投入了更多資金，以支持我們的增長軌跡，並對 HEYDUDE 進行年度額外投資。

Our second quarter consolidated adjusted operating income was $325 million, an increase to prior year by 11.7% and consolidated adjusted operating margins remain best in class and increased 20 basis points to 30.3%. Our second quarter non-GAAP diluted earnings per share increased 10.8% to $3.59. Our continued strong free cash flow generation enabled us to repay approximately $300 million of debt in the first half, reducing borrowings to $2 billion. At the end of Q2, adjusted gross leverage was 1.8x, achieving our midyear leverage goal and net leverage with approximately 1.7x, as we ended the second quarter with $166 million of cash and cash equivalents. Our exceptional free cash flow generation has enabled us to quickly deleverage and resume our share repurchase program.

我們第二季度綜合調整後營業收入為 3.25 億美元，比上年同期增長 11.7%，綜合調整後營業利潤率保持同類最佳水平，增長 20 個基點，達到 30.3%。我們第二季度非 GAAP 攤薄每股收益增長 10.8% 至 3.59 美元。我們持續強勁的自由現金流生成使我們能夠在上半年償還約 3 億美元的債務，將藉款減少至 20 億美元。第二季度末，調整後的總槓桿率為 1.8 倍，實現了我們的年中槓桿目標，淨槓桿約為 1.7 倍，第二季度末我們的現金和現金等價物為 1.66 億美元。我們卓越的自由現金流生成使我們能夠快速去槓桿化並恢復我們的股票回購計劃。

In July, we completed $50 million of share buybacks, repurchasing 425,000 shares at an average price of $117.72. We currently have $1 billion remaining on our share repurchase authorization, and we will continue to methodically balance debt repayment and share repurchase as we approach our long-term net leverage target of 1x to 1.5x. Our inventory balance at June 30, 2023, was $436 million. A decline of 13% to Q2 last year. Crocs' brand inventory was $307 million, down 8.4% to prior year, and HEYDUDE inventory was $130 million, a decrease of 22.3% to prior year. Inventory turns continue to improve, and we are very pleased with the health of our inventory. As we look forward, I would like to share our current outlook for the third quarter in the balance of 2023. All numbers will be on a reported basis unless otherwise stated. Having completed an exceptional first half and with improved visibility and confidence around the second half, particularly for the Crocs brand, we are raising our full year 2023 outlook for revenue and profitability. We now expect revenue growth of 12.5% to 14.5% on a reported basis compared to 2022, up from prior guidance of 11% to 14% growth and resulting in full year revenues of approximately $4 billion. On a consolidated basis, as always, we are focused on best-in-class profitability and are raising our adjusted operating margin to be approximately 27.5% for the full year. We are confident in our ability to deliver higher operating margins as gross margins have outperformed, and we've been able to closely manage SG&A while investing for future growth. We are also raising our adjusted diluted earnings per share outlook to be between approximately $11.83 to $12.22, up from the prior guidance of $11.17 to $11.73. From a brand perspective, we are raising our expectations for the Crocs brand and now expect to grow 12% to 13% on a reported basis, up from 7% to 9% previously, with Asia expected to deliver the highest growth and PTC outperformance expected to continue. For HEYDUDE, as Andrew mentioned, we are lowering our full year growth outlook to be between 14% and 18% revenue growth on a reported basis. This translates to approximately 3.5% to 7.5% growth on a 2022 pro forma revenues of $986 million. While we continue to anticipate strong growth in the wholesale sellout for the HEYDUDE brand, our wholesale partners are planning to manage their inventory very closely for the remainder of the year, and we have a constrained warehouse that limits our (inaudible) capabilities. On a 2-year basis, HEYDUDE growth is very healthy at approximately 80%, and we remain excited about the long-term growth potential of this young brand. For Q3, we expect consolidated revenues to grow approximately 3% to 5%, as we have significant pipeline sale for HEYDUDE. We expect Q3 adjusted operating margin to be approximately 27% and adjusted diluted earnings per share of $3.07 to $3.15. In summary, we are incredibly pleased that we were able to raise expectations for revenue, operating margin and EPS. At this time, I'll turn the call back over to Andrew for his final thoughts.

7月份，我們完成了5000萬美元的股票回購，以117.72美元的平均價格回購了425,000股股票。目前，我們的股票回購授權還剩 10 億美元，隨著我們接近 1 倍至 1.5 倍的長期淨槓桿目標，我們將繼續有條不紊地平衡債務償還和股票回購。截至 2023 年 6 月 30 日，我們的庫存餘額為 4.36 億美元。較去年第二季度下降 13%。 Crocs品牌庫存為3.07億美元，比上年下降8.4%，HEYDUDE庫存為1.3億美元，比上年下降22.3%。庫存周轉率持續改善，我們對庫存的健康狀況感到非常滿意。展望未來，我想分享我們目前對 2023 年第三季度的展望。除非另有說明，所有數據都將基於報告。上半年業績表現出色，下半年的知名度和信心有所提高，尤其是 Crocs 品牌，我們正在上調 2023 年全年收入和盈利能力的預期。目前，我們預計與 2022 年相比，報告收入將增長 12.5% 至 14.5%，高於之前預測的 11% 至 14% 增長，全年收入約為 40 億美元。在綜合基礎上，我們一如既往地專注於一流的盈利能力，並將全年調整後的營業利潤率提高至約 27.5%。我們對實現更高營業利潤率的能力充滿信心，因為毛利率已經跑贏大市，而且我們能夠在投資未來增長的同時密切管理銷售、管理和行政費用。我們還將調整後的稀釋每股收益前景從之前的指導值 11.17 美元至 11.73 美元上調至約 11.83 美元至 12.22 美元。從品牌角度來看，我們正在提高對 Crocs 品牌的預期，目前預計在報告基礎上增長 12% 至 13%，高於之前的 7% 至 9%，其中亞洲預計將實現最高增長，預計 PTC 表現將優於接著說。對於 HEYDUDE，正如安德魯提到的，我們將全年增長預期下調至報告收入增長 14% 至 18% 之間。這意味著 2022 年預計收入為 9.86 億美元，增長約 3.5% 至 7.5%。雖然我們繼續預計 HEYDUDE 品牌的批發銷售量將強勁增長，但我們的批發合作夥伴計劃在今年剩餘時間內密切管理他們的庫存，而我們的倉庫有限，限制了我們（聽不清）的能力。以兩年為基礎，HEYDUDE 的增長非常健康，約為 80%，我們對這個年輕品牌的長期增長潛力仍然感到興奮。對於第三季度，我們預計綜合收入將增長約 3% 至 5%，因為我們有大量 HEYDUDE 的管道銷售。我們預計第三季度調整後營業利潤率約為 27%，調整後攤薄每股收益為 3.07 美元至 3.15 美元。總之，我們非常高興能夠提高對收入、營業利潤率和每股收益的預期。此時，我會將電話轉回給安德魯，詢問他的最後想法。

Thank you, Anne. As we look forward, we're incredibly confident in the strength of the Crocs and HEYDUDE brands and our ability to drive market share gains and sustainable profitable growth. Our focus remains squarely on sustaining brand health and creating long-term shareholder value. Operator, please open the call for questions.

謝謝你，安妮。展望未來，我們對 Crocs 和 HEYDUDE 品牌的實力以及我們推動市場份額增長和可持續盈利增長的能力充滿信心。我們的重點仍然是維持品牌健康和創造長期股東價值。接線員，請打開電話提問。

(Operator Instructions) Our first question comes from Jonathan Komp from Baird. Please go ahead.

（操作員說明）我們的第一個問題來自 Baird 的 Jonathan Komp。請繼續。

I want to start just by asking a little more detail about your outlook for HEYDUDE. Could you give a little more color what you're expecting for the third quarter embedded in your total revenue guidance and just how to think about the channel expectations in the third quarter for HEYDUDE? And then maybe a bigger-picture question, I know when you bought the brand, you pointed to at least $1 billion of revenue by 2024. You're delivering that this year. But how should we think about the growth drivers as we get beyond 2023?

首先我想詳細詢問一下您對 HEYDUDE 的看法。您能否在總收入指導中進一步說明您對第三季度的預期，以及如何考慮 HEYDUDE 第三季度的渠道預期？然後也許是一個更大的問題，我知道當您購買該品牌時，您指出到 2024 年至少實現 10 億美元的收入。今年您將實現這一目標。但 2023 年之後，我們應該如何思考增長動力呢？

Great. Thank you, Jonathan. So look, maybe I'll do the last part of your question first and kind of set the stage for HEYDUDE, then we can come back to Q3. So as we look at the period since we've owned HEYDUDE, look, we've been rapidly expanded distribution to what I would say is essentially the same or very similar distribution to Crocs. A lot of part of that expansion was last year, and I'll come back to that. At the same time, we've introduced new innovative silhouettes that we think are doing well, we know we're doing well. And we see -- we dramatically strengthened the team. As we look at Q2 sell-out for the brand, up 27% as we look across all channels, and consumer satisfaction is incredibly high. NPS for the brand is 71, which got 50% higher than, frankly, most brands in the casual footwear space. As we look at the back half of the year, we're reducing our expectations for the brand, principally related to wholesale. And there's a few things going on there. Number one, as I talked about in prepared remarks, we've got $220 million of sell-in that we did last year that is pretty hard to come. Second, we are seeing our wholesale partners be pretty cautious in the back half of the year. I think they're being cautious for kind of 3 reasons. One is they're just cautious about overall traffic trends and the trajectory of the consumer, they've got some overstock in some other brands, principally some of the big athletic brands that they've got to work through and they don't have good history on HEYDUDE in the back half of the year. So we're seeing very cautious bookings. When we combine that with some constraints that we have around our at-once business, we were transitioning, towards the end of the year, our warehouse and our ERP system. So we're being realistic about our at-once capabilities. And then lastly, we've seen some gray market from -- on the Amazon platform, which we think it's principally coming from the distributors that we closed last year. We are seeing a slight mitigation of that, but we're also working hard to clean up the Amazon presentation. So I think, hopefully, that gives you a strong picture of what's happening with HEYDUDE. We're incredibly confident with the brand, incredibly confident of the long-term growth trajectory. We're not ready to guide next year's growth. I think that was embedded in your question, but we feel well positioned for the long-term growth of the HEYDUDE brand, both here in the U.S. and internationally. And I'll let Anne add some commentary around Q3.

偉大的。謝謝你，喬納森。所以，也許我會先回答你問題的最後一部分，為 HEYDUDE 奠定基礎，然後我們可以回到第三季度。因此，當我們回顧自擁有 HEYDUDE 以來的這段時期時，我們已經迅速擴大了分銷範圍，我想說的是，基本上與 Crocs 的分銷範圍相同或非常相似。擴張的大部分內容是去年的，我會回過頭來討論這一點。與此同時，我們推出了新的創新款式，我們認為這些款式做得很好，我們知道我們做得很好。我們看到——我們極大地增強了團隊實力。當我們觀察所有渠道時，該品牌第二季度的銷售量增長了 27%，消費者滿意度非常高。該品牌的 NPS 為 71，坦率地說，比休閒鞋領域的大多數品牌高出 50%。展望今年下半年，我們正在降低對該品牌的期望，主要是與批發相關的期望。那裡正在發生一些事情。第一，正如我在準備好的發言中談到的，我們去年的銷售收入達到了 2.2 億美元，這是很難實現的。其次，我們看到我們的批發合作夥伴在今年下半年非常謹慎。我認為他們出於三個原因而持謹慎態度。一是他們只是對整體流量趨勢和消費者軌跡持謹慎態度，他們在其他一些品牌上有一些庫存過剩，主要是一些他們必須解決但他們沒有的大型運動品牌今年下半年 HEYDUDE 的良好歷史。所以我們看到預訂非常謹慎。當我們將其與我們的一次性業務所面臨的一些限制結合起來時，我們將在年底前對我們的倉庫和 ERP 系統進行轉型。因此，我們對我們的一次性能力持現實態度。最後，我們在亞馬遜平台上看到了一些灰色市場，我們認為這些市場主要來自我們去年關閉的分銷商。我們看到這種情況有所緩解，但我們也在努力清理亞馬遜的展示。所以我認為，希望這能讓您對 HEYDUDE 的情況有一個清晰的了解。我們對這個品牌充滿信心，對長期增長軌跡充滿信心。我們還沒有準備好指導明年的增長。我認為這已經包含在您的問題中，但我們認為 HEYDUDE 品牌在美國和國際上的長期發展處於有利地位。我將讓 Anne 針對第三季度添加一些評論。

Thanks, Andrew. John, I think the biggest thing for Q3 is just to remember, we're still dealing with, as Andrew mentioned, the non-comp business of HEYDUDE or the pipeline fill. So for Q3, we do expect HEYDUDE to be down, and that's primarily -- that's really related to the wholesale part of the business, as Andrew just mentioned, and you can see from our presentation, we had about $60 million of pipeline fill last year. And then we expect direct-to-consumer to be up, and then Crocs, obviously, to continue to grow and that provides the color around the overall Q3 guidance for revenue growth.

謝謝，安德魯。約翰，我認為第三季度最重要的事情就是記住，正如安德魯提到的，我們仍在處理 HEYDUDE 的非補償業務或管道填充。因此，對於第三季度，我們確實預計 HEYDUDE 會下降，這主要與業務的批發部分有關，正如安德魯剛才提到的，你可以從我們的演示中看到，我們去年有大約 6000 萬美元的管道填充年。然後我們預計直接面向消費者的業務將會增長，而 Crocs 顯然會繼續增長，這為第三季度整體收入增長指引提供了色彩。

Okay. That's very helpful. And then if I could just ask separately about Crocs. Given some of the sales that looks like you're going to miss in the second half, maybe close to $30 million from the distributor you mentioned, but you're still raising guidance for the year. Could you just highlight maybe where you're seeing upside for Crocs and maybe tie in with that any updated thoughts on the gross margin for the year for Crocs since it looks like it was quite strong in the quarter?

好的。這非常有幫助。然後我是否可以單獨詢問有關 Crocs 的情況。考慮到您可能會錯過下半年的一些銷售額，您提到的分銷商可能會帶來接近 3000 萬美元的銷售額，但您仍在提高今年的指導。您能否強調一下您認為 Crocs 的上行空間，並可能與對 Crocs 今年毛利率的任何最新想法相結合，因為該季度看起來相當強勁？

Yes. Thanks, John. Look, the Crocs business is very strong. And we're seeing the brand perform strongly in, frankly, many regions. I'd probably call out a couple. DTC is very strong, particularly here within North America, but also in Asia. Our U.S. wholesale business is probably a little bit stronger than we thought it was going to be. So we feel really good about that. China, I think we gave you a lot of color around China in our prepared remarks, is performing very well. Broader Asia is also performing well. So I think what we're seeing is continued strength in Crocs, really driven by the same things that we've kind of talked about a few times, but it's really product innovation, it's marketing innovation. We see it across clogs as well as sandals as well as Jibbitz. So we feel very confident in the overall Crocs' trajectory. I'll let Anne pick up on your gross margin point.

是的。謝謝，約翰。看來，Crocs的生意非常強勁。坦率地說，我們看到該品牌在許多地區表現強勁。我可能會叫幾個。 DTC 非常強大，尤其是在北美，但在亞洲也是如此。我們的美國批發業務可能比我們想像的要強一些。所以我們對此感覺非常好。中國，我認為我們在準備好的發言中給了你們很多關於中國的色彩，表現得非常好。整個亞洲地區也表現良好。因此，我認為我們看到的是 Crocs 的持續強勢，這實際上是由我們多次討論過的相同事物推動的，但這實際上是產品創新，是營銷創新。我們在木底鞋、涼鞋和 Jibbitz 上都能看到它的身影。所以我們對 Crocs 的整體發展軌跡非常有信心。我會讓安妮了解一下你的毛利率。

Yes. I would also just add that EMEALA DTC is actually incredibly strong as well. So even though the distributor part is impacting that, we saw very strong growth in EMEALA DTC of, I think, around 40%. So -- but overall, from a gross margin perspective, so Crocs' gross margins are also flowing through stronger. Some of that is just stronger channel as DTC outperforms. The second piece is we've taken quite a bit of price in our international markets, which are really supporting margins. And then we've seen promotional levels kind of level out in North America. And then, obviously, we've been able to recoup the freight -- airfreight last year as well as just lower freight rates. So I would say, overall, we expect margins to be higher than the kind of original guide, we thought they were going to be a little bit higher than 58%. And now we're thinking they're probably going to be north of that. So overall, our gross margin expectations for the year are higher than the kind of 55.5% we talked about last time, and that supports the operating margin rate.

是的。我還想補充一點，EMEALA DTC 實際上也非常強大。因此，儘管分銷商部分對此產生了影響，但我們看到 EMEALA DTC 增長非常強勁，我認為增長了 40% 左右。但總體而言，從毛利率的角度來看，Crocs 的毛利率也變得更強。其中一些只是因為 DTC 表現優於大盤而走強的渠道。第二點是我們在國際市場上採取了相當高的價格，這確實支撐了利潤率。然後我們看到北美的促銷水平趨於平穩。然後，顯然，我們已經能夠收回去年的空運運費以及較低的運費。所以我想說，總的來說，我們預計利潤率會高於原始指南，我們認為它們會略高於 58%。現在我們認為他們可能會超出這個範圍。因此，總體而言，我們今年的毛利率預期高於我們上次談到的 55.5%，這支持了營業利潤率。

The next question comes from Abi Zvejnieks from Piper Sandler.

下一個問題來自 Piper Sandler 的 Abi Zvejnieks。

So just first, can you just comment on any differences, I guess, that you're seeing from your wholesale partner behavior between Crocs and HEYDUDE in the U.S. specifically? Is there any difference between sellout between the brands? Or is this really that non-comp dynamic? And then just not having that historical just material data on what happened in the second half for HEYDUDE?

首先，您能評論一下您從 Crocs 和 HEYDUDE 在美國的批發合作夥伴行為中看到的任何差異嗎？不同品牌的銷量有區別嗎？或者這真的是非補償動態嗎？然後只是沒有關於 HEYDUDE 下半年發生的事情的歷史材料數據？

Yes. I think that is obviously a question that we've definitely been kind of asking ourselves and looking closely at, Abbi. And I would say a lot of it is really the newness of the brand we feel. Crocs has clearly performed well. And I would say Crocs at U.S. wholesale, it's the newness, it's both clogs, it's both sandals and it's performing well. I would say the HEYDUDE sellout is also very strong. I think we gave you some visibility to that in the strategic partners. It's up dramatically, I think close to 8% and sell-out in aggregate across all channels, our estimates, at least is up 27%. So consumer takeaway is strong. It's definitely performing at wholesale. We think the principal issue is they have years and years in history on Crocs and how it performs in the back half of the year. The history is very light, and to some of the wholesale funders, nonexistent for the back half of the year. And we're seeing cautious bookings. And as I highlighted in my earlier answer, it's hard for us to react to that with that once given our kind of warehouse situation. So that's really our diagnosis.

是的。我認為這顯然是一個我們一直在問自己並仔細研究的問題，艾比。我想說，這很大程度上是我們感受到的品牌的新鮮感。 Crocs 顯然表現出色。我想說的是美國批發市場的 Crocs，它很新穎，既是木底鞋，又是涼鞋，而且性能很好。我想說 HEYDUDE 的銷售量也非常強勁。我認為我們讓您對戰略合作夥伴有了一些了解。我認為它增長了近 8%，而且我們估計所有渠道的總銷量至少增長了 27%。所以消費者外賣很強勁。它絕對在批發市場上表現出色。我們認為主要問題是他們在 Crocs 上有多年的歷史以及它在下半年的表現如何。歷史非常悠久，對於一些批發資助者來說，今年下半年根本不存在。我們看到預訂謹慎。正如我在之前的回答中強調的那樣，鑑於我們的倉庫情況，我們很難對此做出反應。這就是我們的診斷。

Got it. That makes sense. And then just on the -- inventory management was really strong during the quarter. So you talked about HEYDUDE gross margin was flat year-over-year, but some pressure from the storage costs. So as you clear through inventory, when do you think you could start to see maybe some benefit to the HEYDUDE gross margin?

知道了。這就說得通了。然後就在本季度，庫存管理非常強勁。所以你談到HEYDUDE的毛利率同比持平，但來自存儲成本的一些壓力。那麼，當您清理庫存時，您認為什麼時候可以開始看到 HEYDUDE 毛利率的一些好處？

Yes. We're very pleased with our overall inventory, obviously, down for both brands and really coming in line with our longer-term target for return targets for both brands to be about 4x. I think from a gross margin perspective, overall, there's kind of 2 pieces pressuring HEYDUDE gross margins. One piece, as you mentioned, is the additional kind of storage and subpart logistics situation for that brand, which we expect to, obviously, cure next year with the opening up of our new Las Vegas distribution center. And the second piece is we are seeing quite a lot of gray market activity on Amazon pressure our HEYDUDE ASPs, and that's really related to some of the terminations that we did when we went through and terminated some of the legacy international distributors and also some of the legacy U.S. partners. So we expect to work through that and not to improve throughout the year. So I expect, next year, our gross margins should be back in line kind of with where we originally thought, which is more on the line that's around 50% in the shorter term.

是的。顯然，我們對我們的整體庫存感到非常滿意，兩個品牌的庫存都下降了，並且確實符合我們的長期目標，即兩個品牌的退貨目標約為 4 倍。我認為從毛利率的角度來看，總體而言，有兩件事對 HEYDUDE 的毛利率造成了壓力。正如您提到的，其中一個是該品牌的額外存儲和子零件物流情況，顯然，隨著我們新的拉斯維加斯配送中心的開業，我們預計明年將解決這一問題。第二件事是，我們看到亞馬遜上有相當多的灰色市場活動給我們的 HEYDUDE ASP 帶來壓力，這確實與我們在終止一些傳統國際分銷商以及一些分銷商時所做的一些終止有關。美國的傳統合作夥伴。因此，我們希望能夠解決這個問題，而不是全年有所改善。因此，我預計，明年我們的毛利率應該會回到我們最初預期的水平，短期內更接近 50% 左右。

The next question comes from Tom Nikic from Wedbush Securities.

下一個問題來自 Wedbush Securities 的 Tom Nikic。

So I guess when we think about HEYDUDE, obviously, yes, and I believe you said down in Q3, and that would imply that there's a pretty significant step up in the fourth quarter. And based on the slide deck, there's also a pretty significant amount of new door contribution last year. I'm not sure if that's channel fill or sell-through channel fill that had happened earlier in the year or whatever. But I guess how do we get comfortable with kind of the reacceleration that's embedded in HEYDUDE for the fourth quarter?

所以我想當我們想到 HEYDUDE 時，顯然是的，我相信你說第三季度有所下降，這意味著第四季度有相當大的進步。根據幻燈片，去年還有相當多的新門貢獻。我不確定這是否是今年早些時候發生的渠道填充或銷售通道填充或其他什麼。但我想我們如何才能適應《HEYDUDE》第四季度的重新加速？

Yes. I think there's a few things. One is, in the fourth quarter, we anticipate that the DTC balance in the business is bigger, right? It typically is with the holiday period. So we think DTC is the bigger. And as you can see, we've got a nice trajectory on our DTC business. And we also looked at our wholesale business. And yes, there is still a component of sort of pipeline fill that's harder to comp in the fourth quarter. But I think the balance of the business, we will see a rebound in Q4.

是的。我認為有幾件事。一是，第四季度，我們預計業務中的DTC餘額會更大，對吧？通常是在假期期間。所以我們認為 DTC 更大。正如您所看到的，我們的 DTC 業務發展勢頭良好。我們還研究了我們的批發業務。是的，仍然有一些管道填充的部分在第四季度更難以彌補。但我認為，從業務平衡來看，我們將在第四季度看到反彈。

All right. And then I just want to follow up on inventories. So I think inventory was down 13% year-over-year if I'm not mistaken. Should we think about inventories being down year-over-year in the back half as well?

好的。然後我只想跟進庫存。因此，如果我沒記錯的話，庫存同比下降了 13%。我們是否應該考慮下半年庫存也同比下降？

Yes, I don't think we don't typically guide inventory. I would say that we expect by the end of the year to look at -- to be closer to our 4-turn target. So I think it depends a lot on, obviously, from a revenue perspective, and we will both for both brands tend to bring in inventories ahead of a very high selling season for wholesale in Q1. So some of that depends on our Q1 order book, obviously. But we think that our inventories will be back in line probably around 4 turns by Q4.

是的，我認為我們通常不會指導庫存。我想說的是，我們預計到今年年底會更接近我們的四轉目標。因此，我認為這顯然在很大程度上取決於收入的角度，我們兩個品牌都傾向於在第一季度的批發銷售旺季之前引入庫存。顯然，其中一些取決於我們第一季度的訂單簿。但我們認為，到第四季度，我們的庫存可能會恢復到 4 週左右。

The next question comes from Jay Sole from UBS.

下一個問題來自瑞銀集團 (UBS) 的傑伊·索爾 (Jay Sole)。

The slide deck you gave us, that nice data point that sandals continue to expect it to be $400 million for the Crocs brand. You also mentioned some new styles from HEYDUDE. I think you pointed out in the slide deck to Funk, to Sirocco. What percentage of HEYDUDE revenue is the Wally and Wendy right now? And where -- maybe where was it a year ago? And where do you see it going from here?

你給我們提供的幻燈片，這個很好的數據表明涼鞋繼續預計 Crocs 品牌的銷售額為 4 億美元。您還提到了 HEYDUDE 的一些新款式。我想你在幻燈片中指出了 Funk 和 Sirocco。目前 Wally 和 Wendy 佔 HEYDUDE 收入的比例是多少？哪裡——也許一年前在哪裡？您認為接下來會發生什麼？

Yes. We don't -- We've not been providing that data, Jay, but I can qualitatively tell you that a very large portion of the HEYDUDE business is well in one day, that's the iconic silhouette. And while we're highlighting new styles, which we think is important to continue to diversify and build out the brand and take the brand into kind of other silhouettes and other wearing occasions, a ton of our assets from a product innovation and newness perspective is going into the Wally and Wendy. I think we highlighted a great example is the patriotic pack, right? So last year, essentially, when we bought the brand, they had stars and the stripe shoe, it did really well going into Memorial and 4th of July, we saw great traction with that. So we expanded that to, I think, we said 20-plus star colors across men's, women's and kids. And that did amazing. So a large portion -- a very large portion of the business, Wally and Wendy, and our innovation is going into Wally and Wendy, plus also the additional silhouettes. And I would call out Sirocco in particular, which is kind of a running orientated, so a casual running is performing very well in our DTC business and in our key wholesale accounts.

是的。我們沒有——傑伊，我們沒有提供這些數據，但我可以定性地告訴你，HEYDUDE 業務的很大一部分在一天之內就很好，這就是標誌性的輪廓。雖然我們強調新款式，我們認為這對於繼續多元化和打造品牌並將品牌帶入其他款式和其他穿著場合非常重要，但從產品創新和新穎的角度來看，我們的大量資產是進入沃利和溫迪。我認為我們強調的一個很好的例子是愛國包，對吧？所以去年，基本上，當我們購買這個品牌時，他們有星星和條紋鞋，它在紀念日和 7 月 4 日表現非常好，我們看到了巨大的吸引力。所以我想我們將其擴展到男裝、女裝和童裝的 20 多種明星顏色。這確實令人驚奇。所以很大一部分——業務的很大一部分，沃利和溫迪，我們的創新是沃利和溫迪，還有額外的輪廓。我要特別提到 Sirocco，它是一種以跑步為導向的運動，因此休閒跑步在我們的 DTC 業務和我們的主要批發客戶中表現非常好。

Okay. Got it. And if I could maybe ask one more. Can you give us an update on the cash use plans for Q3 and Q4? Obviously, you paid down a lot of debt in the quarter, bought back some stock. I mean do you expect those trends to continue at a similar rate or a different rate, that would be helpful.

好的。知道了。如果我可以再問一個嗎？您能否介紹一下第三季度和第四季度現金使用計劃的最新情況？顯然，您在本季度償還了大量債務，回購了一些股票。我的意思是，您預計這些趨勢會以相似的速度還是不同的速度繼續下去，這會很有幫助。

Yes. Thanks, Jay. Yes, we're incredibly pleased with our historical debt paydown and what we've into (inaudible) paydown. So we've obviously done a lot of work on derisking the balance sheet and gave down $850 million of debt since we purchased HEYDUDE. We do expect to continue to generate incredible free cash flow. So that free cash flow given these dynamics after we will -- funding our business, obviously, we'll continue to deploy capital. So we'll prioritize paying down debt to get to a target net leverage longer-term ratio of 1 to 1.5 as we stated, and we will look to opportunistically also buy back shares. So we will balance both in the back half of the year.

是的。謝謝，傑伊。是的，我們對我們歷史上的債務償還和我們所付出的（聽不清）償還感到非常滿意。因此，自從收購 HEYDUDE 以來，我們顯然在降低資產負債表風險方面做了很多工作，並減免了 8.5 億美元的債務。我們確實期望繼續產生令人難以置信的自由現金流。因此，考慮到這些動態，在我們為我們的業務提供資金之後，顯然，我們將繼續部署資本。因此，我們將優先償還債務，以達到我們所說的 1 比 1.5 的長期目標淨槓桿率，並且我們還將尋求機會回購股票。因此，我們將在下半年平衡兩者。

And is that included in the EPS guidance?

這是否包含在 EPS 指南中？

No. The EPS guidance includes debt paydown and excludes any opportunistic share buyback.

不會。每股收益指引包括債務償還，不包括任何機會性股票回購。

Our next question comes from Samuel Mark Poser from Williams Trading.

我們的下一個問題來自威廉姆斯貿易公司的塞繆爾·馬克·波塞爾。

All right. What -- at the Fannie show, we were told that when showing a lot of new product that -- to help balance you run a MAP program, but you have MAP holidays. My question to you is how do you -- what are you doing with core product in both Crocs and HEYDUDE to create more relative scarcity so you don't need the MAP holidays, so you can drive a better -- more of a full-price business because I think everybody out there is seeing a good amount of promotion. And then I want to follow up on how you're controlling Amazon and how long that's going to take to get that all cleaned up?

好的。什麼 - 在房利美展會上，我們被告知，當展示很多新產品時 - 幫助平衡您運行 MAP 計劃，但您有 MAP 假期。我問你的問題是，你如何——你正在用 Crocs 和 HEYDUDE 的核心產品做什麼來創造更多的相對稀缺性，這樣你就不需要 MAP 假期，這樣你就可以駕駛更好的——更多的——價格業務，因為我認為每個人都看到了大量的促銷活動。然後我想跟進您如何控制亞馬遜以及需要多長時間才能將所有問題清理乾淨？

Okay. All right. So I think -- let me do the first part first, Sam. So what I'd say is for Crocs and HEYDUDE, we operate MAP, as you well know. We try to make sure our key styles are mapped and so they are not promoted on an ongoing basis. And then we give the retailers, I think, five holidays a year, throughout the year, which is frankly pretty typical. So most brands follow that cadence and give them an opportunity to drive some promotion. Those are all our key promotional periods when the consumer is expecting promotion. And we think that is a very sensible strategy to maintain majority full-price sell-through, plus will also give our wholesale partners an opportunity to drive a little extra business at key times and compete with other brands. I would highlight particularly for Crocs (inaudible) that's been in place for some period of time, that is driving a very high overall achieved gross margin rate and a great deal of profitability for the brand. And then -- so then what -- do you want to ask your question associated with Amazon (inaudible)?

好的。好的。所以我想——讓我先做第一部分，山姆。所以我要說的是，對於 Crocs 和 HEYDUDE，我們經營 MAP，正如你所知。我們盡力確保我們的關鍵風格得到映射，因此它們不會持續推廣。然後我們給零售商，我認為，全年有五個假期，坦率地說，這是非常典型的。因此，大多數品牌都會遵循這種節奏，並給他們一個推動促銷的機會。這些都是我們消費者期待促銷的關鍵促銷時段。我們認為這是一個非常明智的策略，可以維持大部分全價銷售，而且還可以讓我們的批發合作夥伴有機會在關鍵時刻推動一些額外業務並與其他品牌競爭。我要特別強調的是 Crocs（聽不清），它已經存在了一段時間，它正在推動該品牌實現非常高的總體毛利率和巨大的盈利能力。然後 - 那麼怎麼辦 - 您想問與亞馬遜相關的問題嗎（聽不清）？

Yes. But I mean, I understand, but if people -- if you have a brand that appears as strong as both your brands are and you have a strong MAP policy, wouldn't the consumer start waiting for the sale periods over time versus just control it? So I understand promoting stuff you need to clear, but if you have core colors that you're going to promote, I mean, it just -- I don't understand it.

是的。但我的意思是，我理解，但是如果人們 - 如果您擁有一個與您的兩個品牌一樣強大的品牌，並且您有強大的 MAP 政策，那麼消費者是否會隨著時間的推移開始等待銷售期而不是僅僅控制它？所以我理解推廣你需要明確的東西，但如果你有要推廣的核心顏色，我的意思是，這只是——我不明白。

Yes. I would say, Sam, there's not all the evidence for that, right? We see our core products, core colors, core products sell week in, week out, right? So there's really not a lot of evidence that are waiting for the MAP periods. And I would say the MAP breaks on the cores are pretty light. And I would say, look, we're doing a ton of other things with scarcity, right? So we do multiple colabs a week to drive scarcity and drive consumer interest in the brand and the reason to buy. We have huge amounts of kind of seasonal product that's in and out. And if you think about the core classic clog, a whole range of seasonal colors that don't get replenished. And so the consumer knows if they don't buy them, they're not available later. So I think the balance of colabs, marketing activity, consumer activation, it's kind of working really well, to be honest, in terms of driving the overall trajectory of the brand as well as the sales and gross margin achievement.

是的。我想說，山姆，沒有所有證據證明這一點，對嗎？我們看到我們的核心產品、核心顏色、核心產品每週都在銷售，對嗎？因此，等待 MAP 週期的證據確實不多。我想說的是，核心上的 MAP 中斷非常輕。我想說，看，我們正在做很多其他的稀缺事情，對吧？因此，我們每週都會進行多次合作，以推動稀缺性並激發消費者對品牌的興趣和購買的理由。我們有大量進出的季節性產品。如果你考慮一下核心的經典木底鞋，那就是一系列不會得到補充的季節性顏色。因此，消費者知道，如果他們不購買，以後就無法使用。因此，我認為合作實驗室、營銷活動、消費者激活之間的平衡，說實話，在推動品牌的整體軌跡以及銷售額和毛利率的實現方面，效果非常好。

And then -- And apply that to HEYDUDE including the Amazon question?

然後——並將其應用於 HEYDUDE，包括亞馬遜問題？

Yes. And we're transitioning to a similar strategy for HEYDUDE, right? So we've rapidly expanded the distribution of the brand, essentially to the same partners that have Crocs. We're following kind of a similar pricing approach. But I would say, we are seeing quite a lot of pressure in terms of Amazon gray market, and we're working really hard to close that down. I think we've highlighted that we think a lot of that product is coming from the distributors that we closed internationally. So the amount of product that they have available is finite and will run out, and we believe is running out. And so it's a disruption, temporary disruption to the business, but I think we're very clear about what it is and how we deal with it.

是的。我們正在為 HEYDUDE 過渡到類似的策略，對吧？因此，我們迅速擴大了該品牌的分銷範圍，主要是與擁有 Crocs 的合作夥伴合作。我們正在遵循類似的定價方法。但我想說，我們在亞馬遜灰色市場方面看到了相當大的壓力，我們正在努力關閉它。我想我們已經強調過，我們認為很多產品都來自我們在國際上關閉的經銷商。因此，他們可用的產品數量是有限的，並且將會耗盡，我們相信即將耗盡。因此，這是對業務的干擾，暫時的干擾，但我認為我們非常清楚它是什麼以及我們如何處理它。

The next question comes from Jeff Lick from B. Riley.

下一個問題來自 B. Riley 的 Jeff Lick。

Andrew or Anne, I was wondering your Q2 presentation that you put out on June 7. The implication is you take the HEYDUDE guidance from mid-20s down to the 14% to 18%. The implication is things were probably on track at that point, given how you go about your IR efforts and your communications. I'm just wondering if you could walk us through some color as to what happened from June 7 on to today in terms of how would you get the feedback? What -- any color on how things deteriorated a little bit and changed.

安德魯或安妮，我想知道你們在 6 月 7 日發布的第二季度報告。這意味著你們將 HEYDUDE 的指導從 20 多歲下降到 14% 到 18%。這意味著，考慮到你如何進行 IR 工作和溝通，那時事情可能已經步入正軌。我只是想知道您是否可以向我們介紹一下從 6 月 7 日到今天發生的事情，以及您如何獲得反饋？什麼——任何關於事情如何惡化和改變的顏色。

Yes. Look, I think the biggest thing, Jeff, is what I highlighted to an earlier question, right, which was as we look at our -- there's really 2 big pieces. One is wholesale. The other is sort of our efforts to clean up the gray market. The biggest probably is the wholesale. And as we look at our bookings for the fourth quarter, they were more conservative, we thought they were going to be. That's really the biggest change. And the reasons we think the -- the reason that we've been told and the reasons that we understand for that is, number one, the wholesale channel, the majority of the wholesale channel has been pretty cautious about the back half of this year. They have some inventory overhang from some other brands that they need to work through. So their open-to-buy dollars are a little bit more constrained than they'd like to be. Now you could argue that they should invest in the performing brands and then deal with the overstock brands separately, we certainly made that argument, and we'll continue to make that argument. And they don't have a strong history on HEYDUDE, right? So unlike Crocs for that years and years of history and can see exactly how it performs in the back half of the year, they don't have the same history and the confidence in HEYDUDE, and they're pushing a bit of the responsibility back on us in terms of that one, but we don't have the ability to deal with that to the degree they'd like us to. So we just felt, at this point, it was prudent to lower our expectations for the back half of the year. So that's really what changed, as we look beyond the back half of this year, we see lots of growth opportunities for the brand, both from a territory perspective, from a customer perspective and also from a silhouette and new product introduction perspective.

是的。聽著，傑夫，我認為最重要的是我在之前的問題中強調的內容，對吧，當我們審視我們的問題時，確實有兩個大問題。一種是批發。另一個是我們清理灰色市場的努力。最大的可能是批發。當我們查看第四季度的預訂時，我們發現他們更加保守，我們認為他們會如此。這確實是最大的改變。我們認為的原因 - 我們被告知的原因以及我們理解的原因是，第一，批發渠道，大多數批發渠道對今年下半年非常謹慎。他們有一些其他品牌的庫存積壓需要處理。因此，他們的開放購買資金比他們希望的要受到更多限制。現在你可能會說他們應該投資表現良好的品牌，然後單獨處理庫存過剩的品牌，我們當然提出了這個論點，並且我們將繼續提出這個論點。而且他們在 HEYDUDE 上並沒有悠久的歷史，對吧？因此，與 Crocs 那些年的歷史不同，他們可以準確地看到它在下半年的表現，他們沒有相同的歷史和對 HEYDUDE 的信心，他們正在推卸一些責任就這個問題而言，我們有責任，但我們沒有能力按照他們希望的程度來處理這個問題。所以我們認為，在這一點上，降低我們對今年下半年的預期是謹慎的。所以這確實是發生了變化，當我們展望今年下半年之後，我們看到該品牌有很多增長機會，無論是從領土角度、從客戶角度，還是從輪廓和新產品推出角度。

Just a quick follow-up on the direct-to-consumer at HEYDUDE 29.7%. I'm curious, is that a -- relative to the 40.6% in Q1 on a 2 year, is that -- are those comparable? It seems like that probably decelerated a little bit. And then I was wondering, as you guys measure the great market impact, how much of an impact in terms of percentage points might that have on that DTC revenue percentage?

只是 HEYDUDE 29.7% 直接面向消費者的快速跟進。我很好奇，相對於兩年內第一季度的 40.6%，這些是否具有可比性？看來這可能會減慢一點。然後我想知道，當你們衡量巨大的市場影響時，這會對 DTC 收入百分比產生多大的影響？

Yes. So Jeff, so 40% was just the only -- that was just March. If you remember, that was direct-to-consumer call for March because we didn't own the business before that. The 29.7% of total growth for direct-to-consumer, which is e-com, and we have a small amount of retail type of clearance stores. So that's the 29.7% growth. So you're comparing kind of 3 months to 1 month when we kind of own the business. So I'm not sure it's a totally fair comparison, but we feel pretty good about a 30% for extra consumer growth. I'm not sure if we can actually -- or we're ready to kind of talk about how much the grey market has hurt from a growth perspective. But I would say, actually, on both brands, it's not insignificant. It's actually pressured ASPs. And also, obviously, we lose the buy box in being able to sell directly to the consumer. So we've been very aggressive in attacking that. We talked about, we've launched a market cleanup kind of program and obviously, canceled a pretty significant distributor, and we will continue to be very focused on making sure that our product ends up where it should be.

是的。傑夫，40% 是唯一的——那隻是三月份。如果您還記得的話，那是三月份直接面向消費者的電話，因為在此之前我們並不擁有該業務。總增長的29.7%是直接面向消費者的，也就是電子商務，我們有少量的零售類型的清倉店。這就是 29.7% 的增長。所以你比較的是我們擁有該業務時的 3 個月和 1 個月。所以我不確定這是一個完全公平的比較，但我們對 30% 的額外消費者增長感到非常滿意。我不確定我們是否真的可以——​​或者我們已經準備好從增長的角度討論灰色市場受到了多大的傷害。但我想說，實際上，對於這兩個品牌來說，這並不是微不足道的。這實際上是對 ASP 的壓力。而且，顯然，我們失去了能夠直接向消費者銷售的購買權。所以我們一直非常積極地攻擊這一點。我們談到，我們已經啟動了一項市場清理計劃，顯然，取消了一個相當重要的分銷商，我們將繼續非常專注於確保我們的產品最終達到應有的水平。

The next question comes from Jim Duffy from Stifel.

下一個問題來自 Stifel 的 Jim Duffy。

Andrew, I'm hoping you can speak to the development of the China marketplace and opportunity throughout the build. Maybe to start, just can you size the baseline, a lot of moving parts from COVID, Give us a sense for the size of that business now. And then maybe speak to the current channel mix. And then with that background, if you can speak to the different avenues for growth, will digital be the principal channel? Or do you plan to open more stores in China as well?

安德魯，我希望您能談談中國市場的發展和整個建設過程中的機遇。也許首先，你可以確定基線的大小，許多來自新冠疫情的移動部件，讓我們了解現在該業務的規模。然後也許會談談當前的渠道組合。那麼在這樣的背景下，如果你能談談不同的增長途徑，數字化會成為主要渠道嗎？或者您還計劃在中國開設更多商店嗎？

Yes. Let me talk about the strategy about what we're going to do in China. I'll have Anne come in at the end and talk to about the size of the base and give you some respect of that, right? So from a strategy perspective, the way to think about it, and we talked about this historically with -- through the cleanup. So the way to think about it, in China today, we have a large digital business. We've definitely invested very heavily in digital. It's probably our most important channel within China. And then secondly, we have a small footprint of company-owned stores. Those company-owned stores are in the major cities and in the best malls, which are sort of quite expensive for your distributors or your distribution partners in the country to invest in. They're super important because they showcase all of our latest products, they drive authenticity with the consumer. And then we have outlet stores that we also own directly ourselves, important because they are highly profitable and also they are to keep our inventories clean. And then the third component of the strategy is the franchise or partner or mono-branded stores. So as we look at growth, we think growth will principally come from 2 things. We think our digital business will continue to grow, and that's diversified across the platform. So that's Tmall, that's JD, but also increasingly, the Chinese TikTok, where we do a lot of social selling in China. And so the growth will come from digital and will also come from partner-operated stores. And so if we look at the partner portfolio, they will continue to grow their store footprint, probably quite aggressively. The stores that they're operating for Crocs are performing extremely well. They're making a lot of money from those, and they're really commercial animals. If they're making money and they can see an option (inaudible), they will, and obviously, we'll encourage that. So really, the partner-operated stores and the digital will drive the business in the future.

是的。我先講一下我們在中國要做的戰略。我會讓安妮最後進來談談基地的大小，並給予你一些尊重，對嗎？因此，從戰略的角度來看，思考它的方式，我們通過清理歷史性地討論了這個問題。所以想想看，在今天的中國，我們擁有龐大的數字業務。我們確實在數字化方面投入了大量資金。這可能是我們在中國最重要的渠道。其次，我們公司自營商店的規模很小。這些公司自營商店位於主要城市和最好的購物中心，對於您在該國的經銷商或分銷合作夥伴來說，投資這些商店相當昂貴。它們非常重要，因為它們展示了我們所有的最新產品，他們推動消費者的真實性。然後我們還擁有我們自己直接擁有的直銷店，這很重要，因為它們利潤很高，而且可以保持我們的庫存乾淨。該戰略的第三個組成部分是特許經營或合作夥伴或單一品牌商店。因此，當我們看待增長時，我們認為增長主要來自兩件事。我們認為我們的數字業務將繼續增長，並且在整個平台上實現多元化。這就是天貓、京東，但也越來越多地出現了中國的 TikTok，我們在中國進行了大量的社交銷售。因此，增長將來自數字化，也將來自合作夥伴經營的商店。因此，如果我們看看合作夥伴組合，他們將繼續擴大其商店足跡，而且可能相當積極。他們為 Crocs 經營的商店業績非常好。他們從中賺了很多錢，而且他們確實是商業動物。如果他們正在賺錢並且他們可以看到一個選擇（聽不清），他們就會這樣做，顯然，我們會鼓勵這樣做。因此，合作夥伴經營的商店和數字技術確實將推動未來的業務。

Yes. So I think historically, from a size perspective, we said China was about 5% of the Crocs' revenue base. And obviously, our longer-term growth for that is we expect it to grow to be about 10%, which would be a $500 million kind of base. And roughly, if you do the math, is historically, we said it would have been more like a $60 million business. So we obviously are growing it very quickly. So without growing, so it is taking share and really on track with those kind of that long-term trajectory. So we're pretty pleased overall with how China is growing and that is on track.

是的。所以我認為從歷史上看，從規模的角度來看，我們說中國約佔 Crocs 收入基礎的 5%。顯然，我們的長期增長預計將增長 10% 左右，這將是 5 億美元的基礎。粗略地算一下，從歷史上看，我們說這更像是一項價值 6000 萬美元的業務。所以我們顯然增長得非常快。因此，在沒有增長的情況下，它正在佔據份額，並且真正走上了這種長期軌蹟的軌道。因此，我們總體上對中國的增長方式感到非常滿意，而且一切都步入正軌。

And Anne, is that a margin-accretive business?

安妮，這是一項能增加利潤的業務嗎？

So we're investing quite heavily in it right now, right? So we're investing outsized marketing into that business. But long term, obviously, you leverage that and the gross margins in that business are incredibly strong.

所以我們現在在這方面投入相當大，對吧？因此，我們正在對該業務進行大規模的營銷投資。但從長遠來看，顯然，你可以利用這一點，並且該業務的毛利率非常高。

Great. Then last question for me is just on the HEYDUDE SG&A, I'm curious if you've been all adjusted it for the tempered revenue view.

偉大的。我的最後一個問題是關於 HEYDUDE SG&A，我很好奇你們是否已經針對溫和的收入觀點進行了調整。

I'm sorry, can you say that again? What was the last part of your question?

對不起，你能再說一遍嗎？你問題的最後一部分是什麼？

It's the HEYDUDE SG&A. I'm curious if you've adjusted your planned SG&A investment in the HEYDUDE brand for the tempered revenue view.

這是 HEYDUDE SG&A。我很好奇您是否已根據收入預期調整了 HEYDUDE 品牌的銷售、一般行政費用 (SG&A) 投資計劃。

I understand. No, actually, we continue to accelerate investments into HEYDUDE in line with our original plans because, again, this is not a consumer takeaway issue. And so we feel very strongly that we need to invest in our brands. And luckily, we can still generate 27.5% operating margins, the benefit of having a portfolio and also with the benefit of having one brand but not so much profitability. So we will continue to invest in HEYDUDE SG&A throughout the year at the same pace.

我明白。不，實際上，我們繼續按照我們原來的計劃加快對 HEYDUDE 的投資，因為這又不是消費者外賣的問題。因此，我們強烈認為我們需要投資於我們的品牌。幸運的是，我們仍然可以產生 27.5% 的營業利潤率，這是擁有一個產品組合的好處，也是擁有一個品牌的好處，但盈利能力沒有那麼高。因此，我們全年將繼續以同樣的速度投資 HEYDUDE SG&A。

The next question comes from Laura Champine from Loop.

下一個問題來自 Loop 的 Laura Champine。

So I hear that the shift from expecting HEYDUDE to grow in the mid-20s to more like high teens this year is because of wholesale customer orders coming in conservatively. Does that impact your own internal thoughts about the growth rate for HEYDUDE for next year and beyond?

所以我聽說，今年 HEYDUDE 的增長預期從 20 多歲左右轉變為十幾歲左右，是因為批發客戶訂單的保守性。這是否會影響您對 HEYDUDE 明年及以後增長率的內部想法？

No, Laura. I think connected to Anne's answer to Jim's question, immediately prior. No, we see HEYDUDE on, essentially, the same trajectory as we saw it on when we bought the company and since we've owned it, we still have very high expectations for the long-term growth of the brand. And we continue to make, I would say, the SG&A investments, the talent investments and the marketing investments that we had anticipated making even before taking down this adjustment to our growth rate, and we will continue to do that. We're very confident in the long-term potential of the brand. And we're managing this brand for its ultimate potential, not it's kind of 1 year -- sorry, a 1 quarter or one-half-year performance.

不，勞拉。我認為這與安妮之前對吉姆問題的回答有關。不，我們認為 HEYDUDE 的發展軌跡與我們購買該公司時所看到的軌跡基本相同，而且由於我們已經擁有了它，因此我們對該品牌的長期增長仍然抱有很高的期望。我想說的是，我們繼續進行SG&A投資、人才投資和營銷投資，這些投資是我們在取消對增長率的調整之前就預期進行的，而且我們將繼續這樣做。我們對該品牌的長期潛力充滿信心。我們正在管理這個品牌的最終潛力，而不是一年——抱歉，一個季度或一年半的表現。

Understood. And then just a follow-up on the sort of Wild Wild West environment on Amazon and the gray goods sold there. Has there been a change in your own policy for wholesale customers for HEYDUDE to resell on Amazon? And if so, how much is that impacting that guide for this year?

明白了。然後是亞馬遜上狂野西部環境和那裡銷售的灰色商品的後續行動。對於 HEYDUDE 在亞馬遜上轉售的批發客戶，您自己的政策是否發生了變化？如果是這樣，這對今年的指南有多大影響？

Yes, there has been a change. So -- and we will make further changes. So what we did last year, and so that doesn't impact our guide for this year, just to be clear. What we did last year is we did terminate some customers that were operating, I would say, 1 or 2 stores, but buying goods principally to sell on Amazon. So we terminated several customers that were doing that. That was done last year. That's not this year. We also have been very clear in our terms of sale to all of our partners that they are not allowed to sell on Amazon. That doesn't mean that some do because they do. But that is our policy. We will further, as we go through the back end of this year, construct our wholesale customers' rights to sell on their own dot-coms as well, right? So this is essentially moving had to the same policy we have for Crocs, which is our large wholesale customers. So I think the biggest footwear or Foot Locker, they absolutely have the rights to sell on their own dot-com, but the mom-and-pop retailers will not have the rights to sell on any web presence that they have. So we're in the process of sort of continued reining in of digital sale. Just about to say, we're getting into the same place that Crocs has. We're not restricting further than that.

是的，發生了變化。所以——我們將做出進一步的改變。所以我們去年所做的事情不會影響我們今年的指南，只是需要澄清一下。我們去年所做的是，我們確實終止了一些經營一兩家商店的客戶，我想說，這些客戶主要是為了在亞馬遜上銷售而購買商品。因此，我們終止了幾位這樣做的客戶。這是去年完成的。那不是今年。我們在向所有合作夥伴的銷售條款中也非常明確，他們不允許在亞馬遜上銷售。這並不意味著有些人因為他們這樣做而這樣做。但這是我們的政策。在今年年底，我們將進一步建立我們的批發客戶在他們自己的網絡上銷售的權利，對吧？因此，這本質上與我們對 Crocs 的政策相同，Crocs 是我們的大型批發客戶。因此，我認為最大的鞋類或 Foot Locker，他們絕對有權在自己的網絡上銷售，但夫妻零售商將無權在他們擁有的任何網絡上銷售。因此，我們正在繼續控制數字銷售。我想說的是，我們正面臨著與 Crocs 相同的境地。我們不會限制更多。

Makes sense. And have you been -- can you be specific on how much that has impacted the guide for 2023?

說得通。您能否具體說明這對 2023 年指南的影響有多大？

Look, it's probably had some impact. We can't break that out and be specific around that. But it probably is a factor.

看看吧，應該是有影響的。我們無法將其分解並具體說明。但這可能是一個因素。

The next question comes from Rick Patel from Raymond James.

下一個問題來自雷蒙德·詹姆斯的里克·帕特爾。

Can you talk about the drivers of the Crocs brand in North America going forward? I'm just curious how we should think about the contribution of pricing versus volume in the back half? And also if there's anything to call out in terms of the wholesale business in light of the trends that you're seeing at HEYDUDE?

您能談談 Crocs 品牌在北美市場未來發展的推動力嗎？我只是好奇我們應該如何考慮後半段定價與銷量的貢獻？另外，根據您在 HEYDUDE 看到的趨勢，批發業務方面有什麼值得指出的嗎？

Yes. I mean the drivers of Crocs, as we think -- I think your question is kind of a multi-period question. So we see new product introductions. We see strong marketing support. We see collaborations continue to drive very high interest in the Crocs brand and, in fact, growing interest in the Crocs brand. We will capture that interest through continuing to diversify clogs and continue to grow our clog business as well as the rapid acceleration of sandal and penetration of sandal categories and also continued innovation with the Jibbitz. So we really see those core businesses towards the back end of this year, we will -- and we'll also continue to experiment with, I would say, kind of new and innovative silhouettes that we think the Crocs brand can be particularly relevant. So you'll continue to see us push the envelope in terms of experimentation. I think that's super important. And so I'm pretty confident we'll -- as evidenced by our DTC growth and our strong wholesale performance, that will continue to drive kind of multiyear trajectory for the Crocs brand in North America.

是的。我指的是 Crocs 的司機，正如我們所認為的那樣——我認為你的問題是一個多時期的問題。所以我們看到了新產品的推出。我們看到了強大的營銷支持。我們看到合作繼續激發人們對 Crocs 品牌的高度興趣，事實上，人們對 Crocs 品牌的興趣與日俱增。我們將通過繼續使木鞋多樣化、繼續發展我們的木鞋業務、涼鞋的快速發展和涼鞋類別的滲透以及 Jibbitz 的持續創新來抓住這一興趣。因此，我們確實在今年年底看到了這些核心業務，我們將——而且我們還將繼續嘗試，我想說的是，我們認為 Crocs 品牌特別相關的新的和創新的輪廓。因此，您將繼續看到我們在實驗方面挑戰極限。我認為這非常重要。因此，我非常有信心——正如我們的 DTC 增長和強勁的批發業績所證明的那樣，這將繼續推動 Crocs 品牌在北美的多年發展軌跡。

Can you also update us on where you are with addressing HEYDUDE'S ERP and capacity constraint issues? And I believe you touched on working through that next year. But I'm just curious if it's going to be a first-half versus second half event? And when that does happen, what kind of change we can expect from HEYDUDE from a go-to-market strategy perspective in terms of potential to add new wholesale partners or accelerate international efforts?

您能否向我們介紹一下您在解決 HEYDUDE'S ERP 和產能限制問題方面的進展情況？我相信你談到了明年的工作。但我只是好奇這是否會是上半場和下半場的比賽？當這種情況發生時，從市場進入戰略的角度來看，我們可以期待 HEYDUDE 在增加新的批發合作夥伴或加速國際努力方面做出什麼樣的改變？

Yes. We plan to transition to our new ERP at our warehouse, essentially at the end of the year. So that will be a transition period. And that will release a couple of important constraints. One is we're incurring a lot of extra costs to move goods around double-handled goods and have good stored in subscale places. So that will reduce -- that'll alleviate some expense and also some flexibility and ability to react to the business. It will also give us the opportunity to have a much larger at-once business in the following year. And it will also allow us a little bit more flexibility with some of the major wholesale partners with whom today, we're really trying to do a lot of direct shipments, which can be efficient and cost-effective, but are also not very flexible. So it will give us a lot more flexibility that will give us lower cost, flexibility and the opportunity for a larger at-once business.

是的。我們計劃在今年年底在我們的倉庫過渡到新的 ERP。所以這將是一個過渡期。這將釋放一些重要的限制。一是我們需要承擔大量額外成本來運輸雙處理貨物並將貨物存放在小規模的地方。因此，這會減少一些費用，也會減輕一些靈活性和對業務做出反應的能力。它還將使我們有機會在接下來的一年裡一次性擁有更大的業務。它還將使我們與一些主要的批發合作夥伴有更多的靈活性，今天我們確實在嘗試與他們進行大量的直接發貨，這可以是高效且具有成本效益的，但也不是很靈活。因此，它將給我們帶來更大的靈活性，從而降低我們的成本、靈活性以及同時開展更大業務的機會。

This concludes our question-and-answer session. I would like to turn the conference back over to Andrew Rees for any closing remarks.

我們的問答環節到此結束。我想將會議轉回安德魯·里斯（Andrew Rees）發表閉幕詞。

So just to close, I think I'd like to just thank everybody for their continued interest in the business. Obviously, we had a phenomenal second quarter. And I think what you're also seeing is the real cash-generated power of our portfolio and the ability to pay down debt very rapidly and give us a lot of balance sheet flexibility. So thank you for your interest, and we'll talk to you again next quarter.

最後，我想感謝大家對這項業務的持續關注。顯然，我們的第二季度表現非常出色。我認為您還看到了我們投資組合的真正現金產生能力以及快速償還債務的能力，並為我們提供了很大的資產負債表靈活性。感謝您的關注，我們將在下個季度再次與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。