雅詩蘭黛 (EL) 2025 Q1 法說會逐字稿

Good morning, and welcome to the Estee Lauder Companies Q1 fiscal 2025 earnings release and conference call.

早安，歡迎參加雅詩蘭黛公司 2025 財年第一季財報發布和電話會議。

(Operator Instructions)

（操作員說明）

Please also note, today's event is being recorded.

另請注意，今天的活動正在錄製中。

At this time, I'd like to turn the floor over to Rainey Mancini, Senior Vice President of Investor Relations.

現在，我想請投資者關係高級副總裁雷尼·曼奇尼 (Rainey Mancini) 發言。

Ma'am, please go ahead.

女士，請繼續。

Hello.

你好。

On today's call are Fabrizio Freda, President and Chief Executive Officer, and Tracey Travis, Executive Vice President and Chief Financial Officer.

出席今天電話會議的包括總裁兼執行長 Fabrizio Freda 和執行副總裁兼財務長 Tracey Travis。

Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements.

由於我們今天的許多言論都包含前瞻性陳述，因此請您參閱我們的新聞稿和向美國證券交易委員會提交的報告，您會發現可能導致實際結果與這些前瞻性陳述有重大差異的因素。

To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release.

為了便於討論我們的基礎業務，對我們的財務表現和預期的評論是在我們的新聞稿中披露的重組和其他費用和調整之前進行的。

Unless otherwise stated, all organic net sales growth also excludes the noncomparable impact of acquisitions, divestitures, brand closures and the impact of foreign currency translation.

除非另有說明，所有有機淨銷售額成長也排除了收購、剝離、品牌關閉和外幣換算的不可比影響。

You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website.

您可以在我們的新聞稿和我們網站的投資者部分找到 GAAP 和非 GAAP 衡量標準之間的調整表。

As a reminder, references to online sales include sales we make directly to our consumers through our brand.com sites and through third-party platforms.

提醒一下，線上銷售包括我們透過 Brand.com 網站和第三方平台直接向消費者進行的銷售。

It also includes estimated sales of products through our retailers' websites.

它還包括透過我們的零售商網站估計的產品銷售。

Throughout our discussion, our profit recover y and growth plan will be referred to as our PRGP.

在我們的討論中，我們的利潤恢復和成長計劃將被稱為我們的 PRGP。

(Event Instructions)

（活動須知）

And I'll turn the call over to Fabrizio.

我會把電話轉給法布里齊奧。

Thank you, Rainey, and hello to everyone.

謝謝你，雷尼，大家好。

For the first quarter, we anticipated a challenging start to fiscal year 2025.

對於第一季度，我們預計 2025 財年的開局充滿挑戰。

Our results today are largely consistent with the outlook for the quarter we offered in August.

我們今天的業績與我們八月提供的季度前景基本一致。

Organic sales decreased 5% at the low end of the expected range, driven by double-digit declines in Mainland China, global travel retail, primarily owning to Asia and Hong Kong SAR.

受中國大陸、全球旅遊零售（主要來自亞洲和香港特別行政區）兩位數下降的推動，有機銷售額下降 5%，處於預期範圍的低端。

Excluding these three areas, sales in the rest of our global business rose 1%, both on a reported and organic basis, while retail sales growth accelerated sequentially from 2% to 3%.

除這三個領域外，我們全球其他業務的銷售額（無論是報告銷售額還是有機銷售額）均增長了 1%，而零售額增長則從 2% 連續加速至 3%。

A number of markets continue to deliver organic sales growth in our first quarter, led by Japan, where we gained prestige beauty share.

第一季度，許多市場繼續實現有機銷售成長，其中以日本為首，我們在日本獲得了享有盛譽的美容市場份額。

The developed markets in EMEA and our emerging markets also grew organically, while declined modestly as it compared to a big innovation launch calendar in the previous year.

歐洲、中東和非洲的已開發市場和新興市場也實現了有機成長，但與去年的大型創新發布日曆相比略有下降。

While we are not satisfied with our organic sales performance, we are encouraged by initial results from several pillars of our strategic reset that we announced in August, which I'll elaborate on in a few minutes.

雖然我們對有機銷售業績並不滿意，但我們對 8 月宣布的策略重置的幾個支柱的初步結果感到鼓舞，我將在幾分鐘內詳細說明。

Despite the lower level of total company reported sales, adjusted gross margin expanded by over 300 basis points.

儘管公司報告的總銷售額較低，但調整後的毛利率卻增加了 300 個基點以上。

Initiatives of PRGP drove improvements as Tracey will describe.

正如 Tracey 所描述的，PRGP 的舉措推動了改進。

We strategically increased A&P's spending as a percentage of sales in support of our robust innovation pipeline to realize over 100 basis points of adjusted operating margin expansion despite significant operating deleverage.

我們策略性地提高了 A&P 的支出佔銷售額的百分比，以支持我們強大的創新管道，儘管營運槓桿率大幅下降，但調整後的營運利潤率仍實現了 100 個基點以上的擴張。

We delivered adjusted EPS of $0.14 better than $0.11 in the year ago period and $0.04 above the high end of our outlook range.

我們的調整後每股收益為 0.14 美元，優於去年同期的 0.11 美元，比我們的展望範圍的上限高出 0.04 美元。

Looking ahead, as the quarter evolved and through October, it became increasingly apparent that we are facing greater macro headwinds for fiscal year 2025 than we expected in August.

展望未來，隨著本季的發展以及整個 10 月份，我們越來越明顯地看到，我們 2025 財年面臨的宏觀阻力比我們 8 月份的預期更大。

First, the prestige beauty industry reported retail sales in Mainland China further weakened sequentially from a 10% decline in our fourth quarter to a mid-teens percentage decrease.

首先，高端美容產業報告稱，中國大陸的零售額環比進一步疲軟，從第四季的 10% 下降至中雙位數的下降。

Importantly, we gained share in prestige beauty in Mainland China for the second consecutive quarter, driven by industry-leading share gains in skin care and a return to share gains in makeup.

重要的是，在業界領先的護膚品份額增長和彩妝份額增長的推動下，我們在中國大陸的高端美容市場份額連續第二個季度增長。

Consumer sentiment in Mainland China weakened further in our first quarter, while we believe the new economic stimulus measures present medium to long-term potential for stabilization and then ultimately growth in prestige beauty, we anticipate still strong declines near term for the industry.

第一季中國大陸的消費者信心進一步減弱，儘管我們相信新的經濟刺激措施具有中長期穩定的潛力，並最終促進名牌美容的成長，但我們預計該行業短期內仍將出現強勁下滑。

Second, the prestige beauty industry in Asia travel retail continued to be significantly pressured as conversion levels are still far lower than pre-pandemic.

其次，亞洲旅遊零售的高端美容產業繼續面臨巨大壓力，因為轉換程度仍遠低於疫情前。

Third, the US prestige beauty industry retail sales slowed sequentially from high single-digit growth in our fourth quarter to mid-single-digit growth as elevated levels of inflation-driven pricing sales.

第三，由於通膨驅動的定價銷售水準上升，美國高端美容產業零售額連續放緩，從第四季的高個位數成長放緩至中個位數成長。

While this is still good growth, the months of August and September posted lower growth than July.

雖然這仍然是良好的成長，但 8 月和 9 月的成長低於 7 月。

Encouragingly, although the US prestige beauty industry retail sales growth decelerated sequentially, our company retail sales growth accelerated, and we further reduced our prestige beauty share loss.

令人鼓舞的是，儘管美國高端美容行業零售額成長環比放緩，但我們公司零售額成長加速，我們進一步減少了高端美容份額的損失。

We believe we are well on our way to stabilize shares in the US as we increase our exposure to high-growth channels, and we have our sights set on a return to prestige beauty share growth.

我們相信，隨著我們增加對高成長通路的投資，我們正在穩定美國市場的份額，並且我們的目標是恢復高端美容市場份額的成長。

With this complex industry landscape, including the particularly difficulty in forecasting the timing of market stabilization and recovery in China and Asia travel retail.

由於產業格局複雜，預測中國和亞洲旅遊零售市場穩定和復甦的時間尤其困難。

And in the context of the retirements of Tracey and myself, we are solely issuing an outlook for the second quarter and withdrawing our fiscal year 2025 outlook.

在特雷西和我本人退休的背景下，我們僅發布第二季度展望並撤回 2025 財年展望。

Additionally, we are reducing our dividends to a more appropriate payout ratio, which will also create more financial flexibility for our incoming leadership team to reaccelerate our profitable growth trajectory.

此外，我們正在將股息減少到更合適的支付比率，這也將為我們即將上任的領導團隊創造更多的財務靈活性，以重新加速我們的獲利成長軌跡。

Our second quarter outlook reflects the extensive headwinds at retail in China, in Asia travel retail as we do not accept to see benefit from the stimulus in the near term.

我們對第二季的展望反映了中國零售業和亞洲旅遊零售業面臨的廣泛阻力，因為我們認為短期內不會從刺激措施中受益。

We intend to continue investing behind our strategic reset, especially in support of our rich innovation pipeline and expanded consumer reach.

我們打算繼續投資我們的策略調整，特別是支持我們豐富的創新管道和擴大的消費者覆蓋範圍。

Our strategic reset at this point in time is focused on continuing to rebalance our regional growth, evolving our exposure to China market volatility, which has already come down by nearly 10 percentage points since fiscal year 2022.

我們目前的策略重置重點是繼續重新平衡我們的區域成長，改善我們對中國市場波動的風險敞口，自 2022 財年以來，中國市場波動風險已經下降了近 10 個百分點。

At the strategic reset, core is the PRGP aimed at restoring sustainable long-term organic sales growth.

策略重置的核心是 PRGP，旨在恢復可持續的長期有機銷售成長。

In part through generating reinvestment opportunities as well as rebuilding profitability and increasing agility.

部分是透過創造再投資機會以及重建獲利能力和提高敏捷性。

For fiscal year 2025, we are focused on executing the PRGP with excellence.

2025 財年，我們致力於卓越執行 PRGP。

During the first quarter, the focus and dedication of our teams around the world enabled us to establish a strong foundation on delivery for the plan.

在第一季度，我們世界各地團隊的專注和奉獻使我們為計劃的交付奠定了堅實的基礎。

We have made good progress in operationalizing the PRGT, evident in our gross margin expansion despite the pressured mix from skin care decline as well as beginning to rightsize areas of our organization and address over expenses to reflect the lower-than-expected sales growth in the last two fiscal years.

我們在實施 PRGT 方面取得了良好進展，這在我們的毛利率擴張中顯而易見，儘管受到護膚品下降的壓力，以及開始調整我們組織的規模並解決費用問題，以反映低於預期的銷售增長最近兩個財政年度。

As you know, our strategic reset for fiscal year 2025 also has the following five priorities: reignite skin care, capitalize on the multiple growth drivers of high-end fragrance, move faster in leveraging winning channels, launch accretive innovation, inclusive of new big opportunities, and modernize precision marketing by leveraging data and AI, the latter of which we call our consumer-centric growth model.

如您所知，我們對2025財年的策略調整也有以下五個重點：重燃護膚、發揮高端香水的多重成長動力、加速利用致勝管道、啟動增值創新、包容新的大機遇，並透過利用數據和人工智慧實現精準行銷現代化，我們將後者稱為以消費者為中心的成長模型。

Today, let me share our progress across skin care, fragrance as well as leveraging winning channels.

今天，讓我分享我們在護膚、香水以及利用致勝管道方面的進展。

For skin care, we began to realize our ambitions to drive consumer demand in the ritual of nighttime skin care as we brought exciting innovation to market, appealing to a diverse range of consumer segments.

在護膚方面，我們開始實現我們的雄心，即推動消費者對夜間護膚儀式的需求，為市場帶來令人興奮的創新，吸引不同的消費群體。

Our Estee Lauder brand has long been a leader in the science of skin recovery and beauty sleep with its Advanced Night Repair Serum.

我們的雅詩蘭黛品牌憑藉高級夜間修護精華液長期以來一直是皮膚恢復和美容睡眠科學的領導者。

Its new advanced new repair overnight treatment drove expanded regiments by both loyalists and new consumers.

其全新先進的隔夜修復療法吸引了忠實擁護者和新消費者的青睞。

This launch, coupled with a brand-new moisturizer in the supreme franchise focus on improving signs of collagen loss with overnight visible line reductions led to high single-digit organic sales growth in skin care in the markets of EMEA.

此次推出，再加上該系列的一款全新保濕霜，專注於改善膠原蛋白流失跡象，減少夜間可見細紋，導致歐洲、中東和非洲市場的護膚品有機銷售額實現高單位數有機銷售增長。

La Mer further contributed to our momentum in nighttime skin care.

La Mer 進一步推動了我們在夜間護膚領域的發展勢頭。

Its new rejuvenated night cream exceeded our expectation in Asia Pacific, driven by the product resounding appeal in China, where we saw excellent new consumer acquisition trend and La Mer realized strong share gains in prestige skin care.

受中國產品巨大吸引力的推動，其新款煥發晚霜超出了我們在亞太地區的預期，我們在中國看到了出色的新消費者購買趨勢，海藍之謎(La Mer) 在高端護膚品領域實現了強勁的份額增長。

For Clinique, among its nighttime innovation is the Smart Clinical repair AM, PM retinoid-balanced stick.

對於倩碧來說，其夜間創新產品之一是智慧臨床修復 AM、PM 類視黃醇平衡棒。

It has been very well received in its initial markets, demonstrating an ability with nighttime skincare to trade consumer app and into the brand with an approachable price point and unique form.

它在最初的市場上廣受好評，展示了夜間護膚品在消費者應用程式中的能力，並以平易近人的價格和獨特的形式進入品牌。

Both this brand and the franchise new overnight recovery cream plus mask have compelling green stories and strong clinical results, which Clinique scientists recently featured in the Prestigious Dermatology Conference in Amsterdam.

該品牌和特許經營的新型夜間恢復霜加面膜都具有引人注目的綠色故事和強大的臨床結果，倩碧科學家最近在阿姆斯特丹舉行的著名皮膚病學會議上進行了專題介紹。

Indeed, Clinique focus on nighttime skin care builds upon the strategy it become deployed earlier this calendar year to double down on its authentic dermatologists brand heritage.

事實上，倩碧對夜間皮膚護理的關注建立在今年稍早部署的策略基礎上，以加倍鞏固其真正的皮膚科醫生品牌傳統。

This strategy has been highly successful, evidenced by the Clinique fifth consecutive month of prestige beauty share gains in the US through.

這項策略非常成功，倩碧在美國的名牌美容產品份額連續第五個月增長就證明了這一點。

Turning to fragrance.

轉向香水。

Our confidence in the category's promising growth opportunity remains strong.

我們對該類別充滿希望的成長機會仍然充滿信心。

For the first quarter, our fiscal year 2025, excluding global travel retail, our luxury and artisanal brands delivered mid-single-digit organic sales growth, fueled by gains in every region.

在我們 2025 財年第一季（不包括全球旅遊零售），我們的奢侈品和手工品牌在每個地區的成長的推動下實現了中個位數的有機銷售成長。

Le Labo, Jo Malone and Kilian Paris were standouts.

Le Labo、Jo Malone 和 Kilian Paris 是其中的佼佼者。

From Le Labo, significant double-digit growth in China to Jo Malone London impressive results, expanding with the male consumer to Chilean Paris highly sort innovation, and we are thrilled to have launched Valmont Beauty during the first quarter, beginning with a sophisticated collection of eight fragrances, four of which a Belmont's legacy sense reinvented for the modern era.

從在中國實現兩位數成長的Le Labo，到倫敦祖馬龍(Jo Malone London) 令人印象深刻的業績，向男性消費者拓展，再到智利巴黎的高度創新，我們很高興在第一季度推出了Valmont Beauty，首先推出了精緻的系列八款香水，其中四款是貝爾蒙特傳統意義上的現代香水的重新演繹。

As we enter fragrance highly important holiday gifting season, we are complementing the strengths of our luxury and our seasonal portfolio with activations and innovations from Estee Lauder and Clinique to reaccelerate their growth as we aim to better capitalize on opportunities in the prestige tier of fragrance.

隨著我們進入香水非常重要的節日禮物季節，我們正在透過雅詩蘭黛和倩碧的激活和創新來補充我們的奢侈品和季節性產品組合的優勢，以重新加速它們的增長，因為我們的目標是更好地利用高端香水領域的機會。

Let me now move to our pillar of leveraging winning channels.

現在讓我談談利用獲勝管道的支柱。

From the Amazon Premium Beauty store in the US to TikTok shop to shopping in Southeast Asia, many of our brands expanded their reach to attract new consumers.

從美國的亞馬遜高級美容店到 TikTok 商店，再到東南亞的購物，我們的許多品牌擴大了影響力以吸引新消費者。

Alongside these launches, we also strategically expanded the freestanding store footprint of our luxury and artisanal fragrance portfolio, offering elevated experiential shopping.

除了這些產品的推出外，我們還策略性地擴大了奢侈品和手工香水產品組合的獨立商店足跡，提供更高的體驗式購物。

This exciting work continued into the second quarter when last week, our flagship Estee Lauder brand launched in the US Amazon Premium Beauty store.

這項令人興奮的工作一直持續到第二季​​度，上週，我們的旗艦雅詩蘭黛品牌在美國亞馬遜高級美容店推出。

Before I close, I want to highlight that we recently published our fiscal year 2024 social impact and sustainability report.

在結束之前，我想強調一下，我們最近發布了 2024 財年社會影響和永續發展報告。

As detailed in the report, we achieved several sustainability goals, some ahead of schedule, including surpassing our water withdrawal targets, publishing our first corporate ingredient glossary and reaching our palm oil objectives before our 2025 deadline.

正如報告中所詳述的那樣，我們實現了多項永續發展目標，其中一些目標提前完成，包括超越我們的取水目標、發布我們的第一個企業成分術語表以及在2025 年截止日期之前實現我們的棕櫚油目標。

For the fifth year in a row, we achieved carbon neutrality across our Scope 1 and Scope 2 greenhouse gas emissions and sourced 100% renewable electricity globally for our direct operations.

我們連續第五年實現了範圍 1 和範圍 2 溫室氣體排放的碳中和，並在全球範圍內為我們的直接運營採購 100% 可再生電力。

Along with the report, we also published an update to our climate transition plan, which describes our recent progresses and evolution towards our 2030 science-based targets across our climate actions work streams.

除該報告外，我們還發布了氣候轉型計畫的更新，其中描述了我們在氣候行動工作流程中實現 2030 年科學目標的最新進展和演變。

Let me now close by recognizing the evolution of the company leadership following the retirement announcement of Tracey and myself.

最後，讓我回顧一下特雷西和我宣布退休後公司領導的演變。

As you know, tomorrow Akhil Srivastava becomes the company's CFO.

如你所知，明天 Akhil Srivastava 將成為公司的財務長。

Akhil has been a proven leader at the company for nearly a decade with demonstrated financial acumen and we look forward to what he will accomplish.

近十年來，Akhil 一直是公司公認的領導者，具有出色的財務頭腦，我們期待他將取得的成就。

On behalf of the company, I extend our deepest gratitude to Tracey for her significant contributions.

我代表公司對特雷西的重大貢獻表示最深切的感謝。

Tracey embodies the very best qualities of a leader and we are a far stronger organization today, given her dedication to all of us.

特雷西體現了領導者的最佳品質，鑑於她對我們所有人的奉獻精神，我們今天是一個更強大的組織。

We wish her every joy in her well-earned retirement.

我們祝福她在她應得的退休生活中一切快樂。

Yesterday, marked an exciting milestone in our company with 75 years of history as we announced the promotion of Stephane de la Faverie to be our next President and CEO.

昨天，我們宣布晉升 Stephane de la Faverie 擔任我們的下一任總裁兼首席執行官，這標誌著我們擁有 75 年歷史的公司的一個激動人心的里程碑。

I'm thrilled to welcome him into his role as of January 1 and look forward to supporting a seamless transition for the next several months.

我很高興地歡迎他從 1 月 1 日起就職，並期待在接下來的幾個月中支持無縫過渡。

Stephane's deep knowledge of our company and the industry, exceptional strength as a leader and unique ability to combine inspiration, authenticity and strategic insights to drive profitable growth will enable him to move us forward with speed and agility.

Stephane 對我們公司和行業的深入了解、作為領導者的卓越實力以及將靈感、真實性和戰略洞察力結合起來推動盈利增長的獨特能力，將使他能夠快速、靈活地推動我們前進。

To our employees, thank you for your passion for our company and its incredible brands.

對於我們的員工，感謝你們對我們公司及其令人難以置信的品牌的熱情。

I'm confident that you and this company that I love will be in great hands.

我相信你和我所熱愛的這家公司將會得到很好的管理。

I will now turn the call over to Tracey.

我現在將把電話轉給特蕾西。

Thank you, Fabrizio, and hello, everyone.

謝謝法布里奇奧，大家好。

I'll begin by reviewing our financial results for the first quarter, followed by the outlook that we are prepared to share today.

我將首先回顧我們第一季的財務業績，然後是我們今天準備分享的前景。

As Fabrizio mentioned, our first quarter organic net sales declined 5% at the lower end of our expectations.

正如 Fabrizio 所提到的，我們第一季的有機淨銷售額下降了 5%，處於我們預期的下限。

Our adjusted earnings per share was $0.14, which exceeded our initial outlook for the quarter, primarily due to the timing of certain expenses.

我們調整後的每股收益為 0.14 美元，超出了我們對本季的最初預期，這主要是由於某些費用的時間安排。

Starting with our regions.

從我們的地區開始。

Organic net sales in our Asia Pacific region decreased 11% mainly driven by further softening in overall prestige beauty due in large part to our consumer sentiment in Mainland China.

亞太地區的有機淨銷售額下降 11%，主要是由於中國大陸的消費者信心導致整體聲望美容進一步疲軟。

In addition, we experienced a net sales decline in Hong Kong SAR, where sales were pressured by lower spending from traveling consumers as well as reduced foot traffic at retail.

此外，我們在香港特別行政區的淨銷售額出現下降，該地區的銷售受到旅行消費者支出減少以及零售人流量減少的壓力。

These lines were partially offset by continued strength in Japan, where domestic and traveling consumers drove double-digit growth in both brick-and-mortar and online channels.

這些線路被日本的持續強勁所部分抵消，日本國內和旅遊消費者推動了實體和線上通路的兩位數成長。

Organic net sales in our Europe, the Middle East and Africa region decreased 4%, driven largely by the ongoing challenges in our Asia travel retail business.

我們歐洲、中東和非洲地區的有機淨銷售額下降了 4%，這主要是由於我們亞洲旅遊零售業務持續面臨的挑戰。

Our global travel retail net sales decreased double digits due to lower replenishment orders in Asia travel retail.

由於亞洲旅遊零售補貨訂單減少，我們的全球旅遊零售淨銷售額下降了兩位數。

This reflected the further retail market deceleration and worsened consumer sentiment in China, resulting in lower conversion rates.

這反映出中國零售市場進一步減速以及消費者信心惡化，導致轉換率下降。

Consequently, while we managed to reduce our overall initial overall inventory levels in the trade, it was a slower pace than we initially expected.

因此，雖然我們設法降低了貿易中的整體初始整體庫存水平，但速度比我們最初預期的要慢。

Elsewhere in EMEA, net sales grew low single digits, benefiting from commercial activations like Estee Lauder's (inaudible) campaign as well as both existing products and new product launches, including the Clinique caplet franchise.

在歐洲、中東和非洲其他地區，淨銷售額增長了低個位數，這得益於雅詩蘭黛（聽不清楚）活動等商業活動以及現有產品和新產品的發布，包括倩碧膠囊特許經營權。

Luxury fragrances was also strong, led by Le Labo.

以 Le Labo 為首的奢華香水也表現強勁。

Retailer and pure-play sites drove overall double-digit growth from online channels.

零售商和純經營網站推動線上通路整體實現兩位數成長。

Organic net sales in the Americas decreased 1%.

美洲的有機淨銷售額下降 1%。

In North America, our retail sales in the US accelerated sequentially.

在北美，我們在美國的零售額較上季加速。

However, our soft retail sales from M·A·C, Aveda, TOM FORD Ford and True Face led to overall lower net sales, reflecting fewer replenishment orders for these brands.

然而，M·A·C、Aveda、TOM FORD Ford 和 True Face 的零售銷售疲軟導致整體淨銷售額下降，反映出這些品牌的補貨訂單減少。

A strong competitive environment and the continued moderation of growth in prestige beauty in the US also contributed to the net sales decline.

激烈的競爭環境以及美國高端美容產品成長的持續放緩也導致了淨銷售額的下降。

Our team remains focused on evolving our channel distribution mix towards fast-growing channels with the consumer as evidenced by the launch of seven brands in the last eight months in Amazon's US premium beauty store, including our most recent launch of Estee Lauder, as Fabrizio mentioned.

我們的團隊仍然專注於將我們的通路分銷組合發展為快速增長的消費者管道，過去八個月在亞馬遜美國高級美容商店推出的七個品牌就證明了這一點，包括我們最近推出的雅詩蘭黛，正如法布里奇奧提到的。

This strategic pivot drove our double-digit online growth in the US In Latin America, continued net sales growth in Brazil, led by makeup drove double-digit increases in our freestanding stores and specialty multichannels.

這個策略支點推動了我們在美國的兩位數在線成長。

From a category standpoint, organic net sales declined 8% in skin care and 6% in hair care.

從品類角度來看，有機保養品淨銷售額下降了 8%，護髮品淨銷售額下降了 6%。

In skin care, the organic net sales decline was largely due to the pressures in Asia Pacific and in our Asia travel retail business, which more than offset the growth we experienced.

在護膚品方面，有機淨銷售額下降主要是由於亞太地區和我們的亞洲旅遊零售業務的壓力，這遠遠抵消了我們經歷的成長。

In the Americas and the markets of EMEA, including from Estee Lauder with its successful night activations in West and shipment for the products launch in Amazon's US Premium Beauty store.

在美洲和歐洲、中東和非洲市場，包括雅詩蘭黛在西方的成功夜間激活以及亞馬遜美國高級美容店推出的產品的發貨。

Organic net sales in makeup decreased 2%, driven by declines from M·A·C and Too Faced primarily reflecting the brand's retail softness in North America.

化妝品的有機淨銷售額下降了 2%，主要受到 M·A·C 和 Too Faced 銷售額下降的推動，這主要反映了該品牌在北美的零售疲軟。

These declines were partially offset by standout performance from Clinique, which saw strong overall double-digit net sales growth, driven by contributions from all regions.

這些下降被倩碧的出色表現所部分抵消，在所有地區的貢獻的推動下，倩碧的整體淨銷售額實現了兩位數的強勁增長。

The brand's existing products and new innovation in its Clinique Pop and Almost Lipstick product franchises, along with its launch in Amazon's US Premium Beauty Store in fiscal 2024 primarily drove the brand's growth in the quarter.

該品牌的現有產品、Clinique Pop 和Almost Lipstick 產品系列的新創新，以及 2024 財年在亞馬遜美國高級美容店的推出，主要推動了該品牌本季的成長。

Organic net sales in fragrance decreased 1%, mainly due to declines from TOM FORD, Clinique and Estee Lauder, driven by pressures in both our Asia travel retail business in North America.

香水的有機淨銷售額下降了 1%，主要是由於我們在北美的亞洲旅遊零售業務面臨壓力，湯姆·福特 (TOM FORD)、倩碧 (Clinique) 和雅詩蘭黛 (Estee Lauder) 的銷量下降。

These decreases were partially offset by growth from the rest of our luxury fragrances, particularly in the Asia Pacific region and the markets of EMEA driven by hero products, new innovation and targeted expanded consumer reach.

這些下降被我們其他奢華香水的成長所部分抵消，特別是在亞太地區和歐洲、中東和非洲市場，這些市場受到英雄產品、新創新和有針對性的擴大消費者覆蓋率的推動。

Our gross margin expanded 310 basis points compared to last year, largely due to a reduction in obsolescence charges as we better aligned our inventory on hand with our shipments throughout last year.

與去年相比，我們的毛利率擴大了 310 個基點，這主要是由於我們更好地調整了現有庫存與去年全年的發貨量，從而減少了報廢費用。

We also better capitalized on our strategic pricing initiatives by reducing discounts related to excess production and promotions, while leveraging our pricing power ahead of inflation through an enhanced more granular pricing methodology.

我們還透過減少與過量生產和促銷相關的折扣，更好地利用我們的策略定價舉措，同時透過增強的更精細的定價方法，在通貨膨脹之前利用我們的定價能力。

This was partially offset by the unfavorable change in mix, particularly the decline in skin care and the corresponding fixed deleverage.

這被組合的不利變化部分抵消，特別是護膚品的下降和相應的固定去槓桿化。

Our gross margin for the quarter also improved 90 basis points sequentially versus our fourth quarter.

我們本季的毛利率也比第四季提高了 90 個基點。

With this progress, we are pleased that key initiatives under the PRGP are beginning to address the specific pressures to gross margin that we experienced over the past two years, including the sales pressure we continue to experience in the quarter.

隨著這一進展，我們很高興 PRGP 下的關鍵舉措開始解決我們過去兩年經歷的毛利率特定壓力，包括我們在本季持續經歷的銷售壓力。

We obviously still have much more to do, and the company remains focused on controlling excess and obsolescence through our integrated business planning process to better align our forecast accuracy and demand planning as well as addressing other cost opportunities in the supply chain.

顯然，我們還有很多工作要做，公司仍然專注於透過我們的綜合業務規劃流程來控制過剩和過時，以更好地調整我們的預測準確性和需求規劃，並解決供應鏈中的其他成本機會。

Operating expenses increased 190 basis points as a percent of sales during the quarter primarily driven by selling expense deleverage and advertising to support new product launches.

本季營運費用佔銷售額的百分比增加了 190 個基點，這主要是由於銷售費用去槓桿化和支援新產品發布的廣告所推動的。

This deleverage offset the net benefits and expenses realized under the PRGP in the quarter.

這種去槓桿化抵消了本季根據 PRGP 實現的淨收益和支出。

As I mentioned in August, most of the PRGP's estimated net benefits this year are expected to be realized in improving our gross profit margin with approximately 20% of the benefits realized in reducing certain operating expenses.

正如我在 8 月提到的，PRGP 今年預計的大部分淨收益預計將透過提高毛利率來實現，其中約 20% 的收益將透過減少某些營運費用來實現。

We expect to achieve greater net benefits and operating expenses for the remainder of the year from the plan as initiatives are further operationalized and as benefits from our restructuring program progress.

隨著計劃的進一步實施以及重組計劃的進展，我們預計今年剩餘時間將實現更大的淨收益和營運支出。

Operating income increased 33% to $144 million, and our operating margin expanded 120 basis points to 4.3% compared to 3.1% last year.

營業收入成長 33%，達到 1.44 億美元，營業利益率比去年的 3.1% 成長 120 個基點，達到 4.3%。

Our effective tax rate for the quarter was 38.8% compared to 17.9% last year.

我們本季的有效稅率為 38.8%，而去年為 17.9%。

The increase is mainly due to the lower tax base in the prior year, which included the utilization of income tax credits and benefits from previously issued stock-based compensation.

這一增長主要是由於上一年的稅基較低，其中包括利用所得稅抵免和先前發放的股票補償的收益。

Diluted EPS was $0.14 compared to $0.11 last year due to the improving operating profit performance.

由於營業利潤表現改善，稀釋後每股收益為 0.14 美元，去年為 0.11 美元。

Our plans under our previously communicated PRGP are on track and advancing well.

我們先前傳達的 PRGP 下的計劃正在步入正軌並且進展順利。

We also continue to explore additional savings initiatives to offset some of the impacts from the incremental sales pressure we are experiencing globally as well as mitigate the impact of reduced volume on certain initiatives within the PRGP.

我們也繼續探索額外的節省舉措，以抵消我們在全球範圍內經歷的增量銷售壓力帶來的一些影響，並減輕銷售減少對 PRGP 內某些舉措的影響。

As it relates to our restructuring program, to date, we have taken $221 million of charges primarily related to initiatives designed to optimize and rightsize our value chain by reducing spans and layers.

由於這與我們的重組計劃有關，迄今為止，我們已收取 2.21 億美元的費用，主要與旨在透過減少跨度和層級來優化和調整我們的價值鏈的舉措相關。

Additionally, we intend to expand our shared services capabilities to streamline and standardize key processes that should enable us to better leverage our sales growth as it occurs.

此外，我們打算擴展我們的共享服務能力，以簡化和標準化關鍵流程，這將使我們能夠更好地利用我們的銷售成長。

During the quarter, we utilized $670 million in net cash flows from operating activities compared to $408 million last year.

本季度，我們利用經營活動產生的淨現金流量為 6.7 億美元，去年為 4.08 億美元。

The increase in net cash utilization is mainly due to lower net earnings compared to last year and higher taxes paid.

淨現金利用率的增加主要是由於淨利潤較上年減少以及繳納的稅金增加。

In addition, from late August through October of this year, we entered into agreements with certain plaintiff law firms to settle approximately 70% of pending talcum powder cases and established annual capped amounts with each participating law firm for potential future claims over the next five years, starting on January 1, 2025.

此外，從今年8月下旬到10月，我們與某些原告律師事務所達成協議，解決了約70%的未決滑石粉案件，並與每個參與律師事務所就未來五年內潛在的未來索賠確定了年度上限金額，從 2025 年 1 月 1 日開始。

As a result, we recorded a charge of $159 million related to these agreements.

因此，我們記錄了與這些協議相關的 1.59 億美元費用。

We entered into these agreements in response to the rising number of cases brought against the company as well as to proactively help to mitigate the future risk from the evolving litigation landscape related to talc.

我們簽訂這些協議是為了應對針對該公司的案件數量不斷增加，並積極幫助減輕與滑石粉相關的不斷變化的訴訟環境所帶來的未來風險。

We invested $141 million in capital expenditures and we returned $240 million in cash to stockholders through dividends.

我們投資了 1.41 億美元的資本支出，並透過股息向股東返還了 2.4 億美元的現金。

As you read in our press release this morning, we declared a quarterly dividend of $0.35 per share, a reduction from our previous quarterly dividend of $0.66 per share as we reduce our dividend to a more appropriate payout ratio given our earnings outlook.

正如您今天早上在我們的新聞稿中讀到的那樣，我們宣布季度股息為每股0.35 美元，比之前的每股0.66 美元季度股息有所減少，因為考慮到我們的盈利前景，我們將股息降低到更合適的派息率。

And now turning to our outlook.

現在轉向我們的前景。

As Fabrizio mentioned, we have taken the decision to withdraw the full year outlook we provided in August and are only providing an outlook for the near-term second quarter today.

正如 Fabrizio 所提到的，我們已決定撤回 8 月提供的全年展望，今天僅提供近期第二季度的展望。

We have not made this decision lightly and believe it is the right action given the current environment, including the difficulty in forecasting the timing of market stabilization and recovery in China and Asia travel retail and in the context of upcoming leadership changes.

我們並非輕易做出這項決定，並相信鑑於當前環境，包括難以預測中國和亞洲旅遊零售市場穩定和復甦的時間，以及即將到來的領導層變動的背景下，這是正確的行動。

Let me expand a bit on some of these incremental pressures on the business.

讓我詳細闡述一下業務所面臨的一些增量壓力。

First, as we discussed in August, our initial outlook anticipated pressures in both Mainland China and Asia travel retail, expecting these changes to significantly impact our first quarter results, but moderate sequentially throughout the year, including a modest return to net sales growth in the second quarter.

首先，正如我們在8 月討論的那樣，我們最初的展望預計中國大陸和亞洲旅遊零售業將面臨壓力，預計這些變化將對我們第一季度的業績產生重大影響，但全年的業績將有所緩和，包括淨銷售額成長的適度恢復。

While our first quarter results are generally aligned with those expectations, the worsening consumer sentiment in these areas has been greater than anticipated and is also now expected to persist in the near term.

雖然我們第一季的業績總體上符合這些預期，但這些領域不斷惡化的消費者情緒超出了預期，預計短期內還將持續下去。

Although we are cautiously optimistic about the potential medium- to long-term opportunities presented by the new economic stimulus measures in China, we believe both the timing and the magnitude of their impact on our business in the region are uncertain.

儘管我們對中國新經濟刺激措施帶來的潛在中長期機會持謹慎樂觀態度，但我們認為其對我們在該地區業務的影響的時間和程度都存在不確定性。

As a result, we now anticipate continued near-term net sales declines in these areas of our business and overall for the second quarter, adding pressure to our EPS.

因此，我們現在預計這些業務領域以及第二季的整體近期淨銷售額將持續下降，這將為我們的每股盈餘增加壓力。

Second, the continued normalization of prestige beauty growth in other markets post pandemic, along with near-term residual impacts of the previous inflationary period on consumer sentiment has created some uncertainty about the level at which market stabilization will occur and is expected to further pressure our second quarter results.

其次，疫情後其他市場的高端美容成長持續正常化，加上上一個通膨時期對消費者信心的短期殘餘影響，為市場穩定的水平帶來了一些不確定性，預計將進一步為我們的市場帶來壓力。

As mentioned earlier, we remain focused on realizing net benefits from our PRGP initiatives, given the anticipated incremental sales pressure we acknowledge the need to continuously evaluate the plan and more importantly, take decisive action to maximize its benefits, identify new opportunities for growth and pursue additional savings initiatives.

如前所述，我們仍然專注於實現PRGP 計劃的淨收益，考慮到預期的增量銷售壓力，我們承認需要不斷評估該計劃，更重要的是，採取果斷行動以最大化其收益，識別新的成長機會並追求額外的節約舉措。

Using October 24 spot rates of 1.078 for the euro 1.293 for the pound, 7.126 for the Chinese yuan and $1,380 for the Korean won currency translation is not expected to have a material impact to reported sales and EPS for the second quarter.

使用 10 月 24 日即期匯率：歐元兌換 1.078、英鎊兌換 1.293、人民幣兌換 7.126、韓元兌換 1,380 美元，預計不會對第二季報告的銷售額和每股盈餘產生重大影響。

We now expect organic net sales for our second quarter to decrease 6% to 8% compared to the prior year period, largely due to the ongoing challenges in Mainland China and in Asia Travel Retail, we have discussed, as well as persistent low conversion rates by trailing consumers in Hong Kong SAR.

我們現在預計第二季的有機淨銷售額將比去年同期下降 6% 至 8%，這主要是由於我們已經討論過的中國大陸和亞洲旅遊零售業持續面臨的挑戰以及持續的低轉換率落後於香港特別行政區的消費者。

In terms of gross margin, we expect expansion in the second quarter compared to last year, although it is not expected to be at the same magnitude as the level of expansion we saw in the first quarter.

就毛利率而言，我們預計第二季將比去年有所擴張，儘管預計不會達到第一季擴張水準。

Recall that last year's first quarter gross margin was the lowest of the fiscal year as it was more affected by high obsolescence charges, and discounts than in the other three quarters, and it did not reflect the benefits of the strategic actions we implemented later in the year to address these pressures and improve gross margin.

回想一下，去年第一季的毛利率是本財年最低的，因為它比其他三個季度更受高報廢費和折扣的影響，並且沒有反映我們在本財年後期實施的戰略行動的好處。今年將解決這些壓力並提高毛利率。

We now expect our second quarter effective tax rate to be approximately 43% compared to 37.7% last year.

我們現在預計第二季的有效稅率約為 43%，而去年為 37.7%。

The increase primarily reflects the unfavorable impact of previously issued stock-based compensation, which tends to have a disproportionate effect in the second quarter due to the timing of equity award vesting and our estimate of lower earnings compared to last year.

這一增長主要反映了先前發行的基於股票的薪酬的不利影響，由於股權獎勵歸屬的時間以及我們對與去年相比較低的盈利的估計，這往往會在第二季度產生不成比例的影響。

We now expect second quarter adjusted EPS of $0.20 to $0.35 for a decrease between 60% to 77% versus prior year.

我們目前預計第二季調整後每股收益為 0.20 美元至 0.35 美元，較去年同期下降 60% 至 77%。

This has undoubtedly been a challenging period for our teams and all of us to manage through.

對我們的團隊和我們所有人來說，這無疑是一個充滿挑戰的時期。

However, as Fabrizio mentioned, we are encouraged by some bright spots that we are starting to see from proactive measures we have taken previously.

然而，正如法布里齊奧所提到的，我們對我們之前採取的積極措施中開始看到的一些亮點感到鼓舞。

There is clearly more to be done, and we have confidence in our teams, including our new leadership team to continue to drive progress forward.

顯然還有更多工作要做，我們對我們的團隊（包括新的領導團隊）充滿信心，能夠繼續推動進步。

As I close this earnings call, I want to express my sincere gratitude to our dedicated employees, your steadfast commitment, hard work, incredible passion for our brands and resilience have been vital to our success over these years and certainly will be in the future.

在結束本次財報電話會議時，我想對我們敬業的員工表示誠摯的謝意，你們堅定的承諾、辛勤的工作、對我們品牌的難以置信的熱情和韌性對我們這些年來的成功至關重要，而且在未來也是如此。

And reflecting on my past 12-plus years with the company, I am immensely proud of the many things that we have accomplished together.

回顧我過去 12 多年在公司工作的經歷，我為我們共同取得的許多成就感到無比自豪。

To our valued investors, thank you for your continued support.

對於我們尊貴的投資者，感謝您一直以來的支持。

Your patience and confidence in our long-term growth strategy and initial PRGP actions have been instrumental as we navigate through this intense period of volatility and the resulting impact it has had on our performance.

您對我們的長期成長策略和最初的 PRGP 行動的耐心和信心在我們度過這段劇烈波動的時期及其對我們業績產生的影響時發揮了重要作用。

I am optimistic in the company's ability to continue to take the appropriate decisive actions to manage through this prolonged period of volatility and supported by the PRGP and the strong result of our employees to progressively return to more consistent and sustainable sales growth and stronger profitable recovery.

我對公司有能力繼續採取適當的果斷行動來應對這段長期的波動期感到樂觀，並在PRGP 和我們員工的強勁成果的支持下，逐步恢復更一致和可持續的銷售增長以及更強勁的利潤復甦。

Thank you, and that concludes our prepared remarks.

謝謝，我們準備好的發言就到此結束。

So we'll be happy to take your questions at this time.

因此，我們現在很樂意回答您的問題。

(Operator Instructions) Dara Mohsenian, Morgan Stanley.

（操作員指令）Dara Mohsenian，摩根士丹利。

So clearly, the -- so clearly, the external circumstances have worsened in the beauty category, particularly in China and Asia Travel Retail, as you mentioned.

很明顯，正如您所提到的，美容類別的外部環境已經惡化，特別是在中國和亞洲旅遊零售領域。

Just wanted to get your perspective on the internal reaction to that.

只是想了解您對此的內部反應的看法。

A, just from a productivity standpoint, is there more you can do beyond the PRPG program.

A，僅從生產力的角度來看，除了 PRPG 程式之外，您還可以做更多的事情嗎？

Tracey, you alluded to that in your prepared remarks, but just the significant pressure on the business and the dividend cut today, can you give us a bit more detail on how much more aggressive you can get on cost structure, the potential areas you're looking at?

特雷西，您在準備好的講話中提到了這一點，但是今天業務面臨巨大壓力和股息削減，您能否給我們提供更多詳細信息，說明您可以在成本結構方面採取多大的積極性以及您的潛在領域？

And then, B, just the other side of that, is how much reinvestment might be needed going forward to drive a top line recovery.

另一方面，B 是未來可能需要多少再投資才能推動營收復甦。

So any thoughts there in light of the industry conditions at this point would be helpful.

因此，根據目前的行業狀況提出的任何想法都會有所幫助。

Sure, Dara.

當然，達拉。

So obviously, given the situation, and I discussed this a little bit in the prepared remarks, we are evaluating additional actions related to the PRGP and beyond, given the continued pressure on the business.

顯然，鑑於這種情況，我在準備好的發言中對此進行了一些討論，考慮到業務面臨的持續壓力，我們正在評估與 PRGP 及其他相關的其他行動。

So we have identified some additional cost savings to offset some of the volume pressure that we saw in the first quarter.

因此，我們已經確定了一些額外的成本節省，以抵消我們在第一季看到的一些銷售壓力。

There are more plans under discussion as it relates to the PRGP.

還有更多與 PRGP 相關的計劃正在討論中。

As it relates to investment, we did protect some investment in the first quarter.

因為涉及投資，我們第一季確實保護了一些投資。

We actually did experience a bit of deleverage in more of our consumer-facing areas like marketing, advertising and promotion as well as selling.

事實上，我們在更多面向消費者的領域確實經歷了一些去槓桿化，例如行銷、廣告、促銷以及銷售。

We will do that again in the second quarter.

我們將在第二季度再次這樣做。

So that is some of what is embedded in the guidance.

這就是指南中包含的一些內容。

And obviously, Stephane and Akhil will be communicating going forward what the plans are that are in process right now being worked on in terms of the new actions that might be incorporated under the PRGP as well as other growth areas as well.

顯然，Stephane 和 Akhil 將繼續溝通目前正在製定的計劃，包括可能納入 PRGP 以及其他成長領域的新行動。

But we are very much focused as we have communicated previously.

但正如我們之前溝通過的那樣，我們非常專注。

Under the PRGP to free up costs, obviously, not only to improve our margin, but importantly, to fuel additional growth for our brands and more to come on that.

顯然，根據 PRGP 來釋放成本，不僅可以提高我們的利潤，而且重要的是，可以推動我們品牌的額外成長以及未來更多的成長。

And I want just to add that on the reinvestment on top of the amount of funds that we need to reinvest is the improvement of the quality of this investment and on the return on these investments where we are doing as part of the PRGP a lot of work.

我想補充一點，除了我們需要再投資的資金量之外，再投資還在於提高投資質量，以及我們作為 PRGP 的一部分所做的很多投資的回報。

And this means, for example, what we call the strategy of increasing our precision marketing and our consumer-focused marketing, which is basically the recognition of the improvements we need to do in the digital social media part in the way we go to market in every market of the world in this area.

例如，這意味著我們所說的增加精準行銷和以消費者為中心的行銷的策略，這基本上是對我們進入市場的方式中需要在數位社交媒體部分進行改進的認識。個市場。

And there are some exciting progress happening as demonstrated by some results in the market share that some new innovation created while using this precision marketing techniques.

使用這種精準行銷技術時，一些新的創新所創造的市場份額結果表明，正在發生一些令人興奮的進展。

And then is the -- also the winning -- the acceleration of winning fast in growing channels is obviously a big part of that because when you are present in the growing winning channels with our brands faster and with more services and clarity, like we are doing, as I explained in my prepared remarks in many markets.

然後是——也是獲勝的——在不斷增長的管道中快速獲勝的加速顯然是其中的一個重要部分，因為當您以我們的品牌更快、更多的服務和清晰度出現在不斷增長的獲勝在通路中時，就像我們一樣正如我在許多市場準備好的發言中所解釋的那樣。

This makes the return on the investment that we are doing better and more productive.

這使得我們所做的投資回報更好、更有成效。

So it's a combination of investing more as Tracey explained and making every dollar count more.

因此，正如特雷西所解釋的那樣，這是更多投資和讓每一美元更有價值的結合。

Steve Powers, Deutsche Bank.

史蒂夫鮑爾斯，德意志銀行。

I was hoping we could step back a little bit, just amidst all this volatility, you get some perspective on how you see your market share standing across key markets, your expectations for how those market shares should trend into 2Q and over the balance of the fiscal year?

我希望我們能夠退一步，在所有這些波動中，您可以了解如何看待您在關鍵市場中的市場份額，以及您對這些市場份額在第二季度以及其他市場中的趨勢的預期。

And to the extent possible, how you see different regions contributing to the negative 6% to negative 8% organic growth call for second quarter?

在可能的情況下，您如何看待不同地區對第二季負 6% 至負 8% 有機成長的貢獻？

That would be helpful.

那會有幫助的。

Yeah.

是的。

So in terms of the regions, and Steve, you know we normally don't give regional guidance, just our overall guidance.

因此，就地區而言，史蒂夫，你知道我們通常不會提供地區指導，而只是提供整體指導。

But obviously, with down 6% to down 8%, we would expect, as we said, continued pressure from China and travel retail.

但顯然，隨著下降 6% 至 8%，我們預計，正如我們所說，來自中國和旅遊零售的壓力將持續。

We've also seen, and I think Fabrizio will touch on this point on the market share, we have seen slowing in other markets as well.

我們也看到，我認為法布里奇奧將談到市場份額的這一點，我們也看到其他市場的放緩。

So when you think about last year, first quarter, we had double digit growth in several markets in North America and APAC.

因此，當你想想去年第一季時，我們在北美和亞太地區的幾個市場實現了兩位數的成長。

And we've seen that progressively decelerate, still positive, and I'm talking market now, but progressively decelerate throughout the four quarters.

我們已經看到這種情況逐漸減速，但仍然是積極的，我現在談論的是市場，但在整個四個季度中逐漸減速。

So part of the uncertainty is whether or not those markets will decelerate again in the second quarter.

因此，部分不確定性在於這些市場是否會在第二季再次減速。

But we are expecting that China and Travel Retail will be down meaningfully in the second quarter as they were in the first quarter.

但我們預計第二季中國和旅遊零售將像第一季一樣大幅下降。

And the rest of the business, which Fabrizio talked about what the results were in the first quarter being a bit of a pickup in the second quarter, but resulting obviously in the Q2 guidance that we gave.

法布里奇奧談到了其餘業務，第一季的業績在第二季度有所回升，但顯然導致了我們給出的第二季度指導。

Yeah.

是的。

And in market share, I mean, maybe I should -- we can speak about the market share plans in every single region of the world.

在市場份額方面，我的意思是，也許我應該——我們可以談論世界每個地區的市場份額計劃。

But let me focus on what will make a big difference with China, US, Japan, so the big markets.

但讓我重點關注什麼會對中國、美國、日本等大市場產生重大影響。

And so in China, I think this quarter, in a declining market, we had proved that when we focus on the strategy that we just discussed, meaning focusing on skin care in the case of China, the night skin care, focusing on winning in the growing channels, focusing on improving our precision marketing and focusing on leveraging very strong innovation.

因此，在中國，我認為本季度，在市場下滑的情況下，我們已經證明，當我們專注於我們剛才討論的戰略時，這意味著在中國的情況下專注於皮膚護理，夜間皮膚護理，專注於贏得勝利不斷增長的管道，專注於改善我們的精準行銷並專注於利用非常強大的創新。

We can get market share growth in a very difficult market situation.

我們可以在非常困難的市場情況下獲得市場份額的成長。

In China, the growth we got in skin care, which is more than 1 full point of market share growth in skin care is very, very strong.

在中國，我們在保養品領域的成長非常非常強勁，保養品市佔率成長超過 1 個百分點。

And this is driven by this innovation, for example, the La Mer brand and their own innovation.

這是由這種創新所驅動的，例如 La Mer 品牌和他們自己的創新。

We grew also market share in makeup, where the activity, for example, was less than in skin care, our activity was less than in skin care.

我們在化妝品領域的市場份額也有所增長，例如，該領域的活動少於皮膚護理領域，我們的活動也比皮膚護理領域少。

We still grew market share.

我們的市場佔有率仍然成長。

This shows at least the clear strengths of our brand equities that when activated correctly via market share growth.

這至少顯示了我們的品牌資產在透過市佔率成長正確啟動時所具有的明顯優勢。

So in China, we are optimistic on the opportunity in the future.

所以在中國，我們對未來的機會持樂觀態度。

Japan was another great example where we focused particularly in the case of Japan on our fragrance portfolio in the new Le Labo store and with the new Jo Malone stores in Tokyo that are flagship stores and the result has been an extraordinary, frankly, 200 points of market share gain in fragrance, becoming the number one fragrance company in Japan in only one quarter.

日本是另一個很好的例子，我們在日本特別關注 Le Labo 新店和東京新 Jo Malone 旗艦店的香水產品組合，坦率地說，結果是非凡的 200 分香水市場份額不斷增加，僅一個季度就成為日本第一大香水公司。

Again, shows that the focus, when we put the focus on the activation of these strategy drivers we get extraordinary results.

再次表明，當我們將重點放在激活這些戰略驅動因素上時，我們會得到非凡的結果。

So those are, frankly, green points that shows how the underlying brand equity is strong and when activated correctly, we get what we need to get.

坦白說，這些綠點表明了潛在的​​品牌資產是多麼強大，如果正確激活，我們就能得到我們需要的東西。

And finally, on America, I want to say that is our retail trends in America was strong, was accelerated from 2% in the quarter to 3% this quarter, so improving and improving in a declining market growth, as Tracey Travis just explained.

最後，關於美國，我想說的是，我們在美國的零售趨勢很強勁，從本季度的2% 加速到本季度的3%，因此在不斷下降的市場增長中不斷改善，正如特雷西·崔維斯(Tracey Travis) 剛才解釋的那樣。

So the market growth went from 9% to 5%.

因此市場成長率從 9% 上升到 5%。

So still growth but declining level of growth we were growing better and accelerating that, which means practically in America, we are reducing the market share growth.

因此，成長仍在成長，但成長水準正在下降，我們正在更好地成長並加速成長，這實際上意味著在美國，我們正在減少市場份額的成長。

And as I said in my prepared remarks, we look forward to a stabilization and the tactics which are working here, and again, very visible in what is the reaction of our Clinique brand, which is obviously a classic brand, a brand which is there for many years, is the market leader in skin care in the market and is growing now market share for five months in a row driven by the big repositioning and leveraging the trends in their mask skin care, particularly, but also leveraging the huge success in makeup in this moment, as we explained in the prepared remarks.

正如我在準備好的演講中所說，我們期待著穩定和在這裡發揮作用的策略，同樣，我們的倩碧品牌的反應非常明顯，這顯然是一個經典品牌，一個在那裡的品牌多年來，它一直是皮膚護理市場的市場領導者，在大規模重新定位和利用面膜皮膚護理趨勢的推動下，現在市場份額已連續五個月增長，而且還利用了在面膜皮膚護理領域取得的巨大成功。我們在準備好的評論中所解釋的那樣，此刻化妝。

And also it's been led obviously by the Amazon distribution.

而且它顯然是由亞馬遜發行版主導的。

I want to notice that at the same time, the success of Clinique in Ulta has been very, very strong, showing that the Amazon is bringing new customers is not just speaking to the same customer.

我想注意到，同時，倩碧在 Ulta 的成功非常非常強勁，這表明亞馬遜帶來的新客戶不僅僅是針對同一個客戶。

It's adding market share, adding new customers and along all our new channels pantners like Amazon or historical strong partners like Ulta to get success on the same brands.

它正在增加市場份額，增加新客戶，並沿著我們所有的新管道，像亞馬遜這樣的褲子購買者或像 Ulta 這樣的歷史悠久的強大合作夥伴，在同一品牌上取得成功。

And this is happening also fragrances in many other activities we have in the market.

在我們市場上的許多其他活動中，這種情況也正在發生。

So we are focused on continued accelerating market share gains in markets like China and Japan and focus on achieving further stabilization and then a gain market share also in the US And there are many other markets of the world, emerging markets or specific markets where when we look at the last 12 months, we did progress market share, and we will continue to accelerate together with -- the answer that Tracey and I gave to the previous question, which is the increased investment and increased precision of these investments.

因此，我們專注於繼續加速中國和日本等市場的市場份額成長，並專注於實現進一步穩定，然後在美國也獲得市場份額。過去12 個月，我們的市佔率確實取得了進步，我們將繼續共同加速——特雷西和我對上一個問題的回答，即增加投資和提高這些投資的精確度。

I hope you see the full picture of what we are trying to do even in a moment where the bottom of the market, but in China and Travel Retail are dropping under us, we are keeping the focus on this recovery of market share in every single market.

我希望您能全面了解我們正在努力做的事情，即使是在市場觸底的時刻，但在中國和旅遊零售業正在下降的時候，我們仍將重點放在每個市場份額的恢復上市場。

Lauren Lieberman, Barclays.

勞倫·利伯曼，巴克萊銀行。

I wanted to talk a bit about the dividend cut, both in terms of timing and kind of the message.

我想談談股息削減，無論是時間安排還是資訊類型。

So first, just in terms of timing, why not clean this up back in office?

首先，就時間而言，為什麼不在辦公室清理這個問題呢？

I know that China worsened during the quarter.

我知道中國在本季情況惡化。

But I would argue it's not to the degree that dividend should have come into question.

但我認為這還沒有達到股利應該受到質疑的程度。

And then the second thing is just on the message.

然後第二件事就在訊息上。

Should we be thinking here about it because of timeline and magnitude of earnings recovery when we think out over the next several years, should we be thinking about cash and reinvestment needs because there's hardly a leverage problem, there's not a balance sheet problem, but this is a pretty big change.

當我們考慮未來幾年時，我們是否應該因為盈利復甦的時間表和幅度而考慮這個問題，我們是否應該考慮現金和再投資需求，因為幾乎不存在槓桿問題，不存在資產負債表問題，但是這個是一個相當大的變化。

So timing and sort of the message and how we should be thinking through this beyond there just being room for new leadership?

那麼，除了為新的領導層留出空間之外，我們應該如何思考這訊息的時機和類型？

Yeah.

是的。

No thanks, Lauren, for the question.

不用了，勞倫，謝謝你提出這個問題。

Look, reducing our dividend is not an indication at all of what we think about our long-term growth opportunities.

看，減少股利根本不顯示我們對長期成長機會的看法。

Given the pressures, not only in the first quarter, which, to your point, we expected, but in the second quarter, which is a difference, obviously, than where we were in August.

考慮到壓力，不僅在第一季（就您的觀點而言，這是我們預期的），而且在第二季度，這顯然與我們八月份的情況有所不同。

As we looked at recognizing the level of uncertainty that we are experiencing for the balance of the year, which caused us to pull our guidance.

當我們認識到今年剩餘時間我們所經歷的不確定性程度時，這導致我們取消了指導。

We thought it appropriate at this time as well to look at the dividend.

我們認為此時考慮股利也是適當的。

When you think about paying $0.66 dividend with the earnings, the $0.14 that we had in the quarter.

當你考慮用利潤支付 0.66 美元的股息時，我們本季的股息為 0.14 美元。

And obviously, what we guided for the second quarter, it was appropriate for us to rightsize the dividend at this time to make sure.

顯然，根據我們對第二季度的指導，我們此時調整股息規模以確保是適當的。

Obviously, we don't have a liquidity problem to your point, but recognizing the prolonged situation in terms of pressure in our markets, rightsizing the dividend still a very good dividend yield for investors.

顯然，我們沒有像您所說的那樣存在流動性問題，但認識到我們市場壓力的長期情況，調整股息規模對投資者來說仍然是一個非常好的股息收益率。

But rightsizing it was the appropriate thing to do to protect the cash that will be needed, obviously, for additional actions that we may take under the PRGP as well as additional investments we may make to support growth.

但顯然，調整規模是適當的做法，可以保護我們根據 PRGP 可能採取的額外行動以及為支持增長而可能進行的額外投資所需的現金。

So really looking at it into totality in terms of total shareholder return and figuring out what's the best way for us to invest back in the business as well as obviously continue to return a nice yield in terms of dividend to our shareholders.

因此，真正從股東總回報的角度全面審視它，找出我們投資回業務的最佳方式，並顯然繼續為股東帶來可觀的股息回報。

Brian Spillane, Bank of America.

布萊恩·斯皮蘭，美國銀行。

I guess, my question is more related to the management change and the qualities and skillsets that both you and Tracey were looking for in terms of replacements.

我想，我的問題更多地與管理層變動以及您和特雷西在替代者方面尋找的素質和技能有關。

And I asked that in the context of you both have been around this company as it was effectively turned around and brought it to a very amazing peak.

我問你們，你們都曾在這家公司工作過，因為這家公司得到了有效的扭轉，並達到了一個非常驚人的頂峰。

And the landscape's changed a little bit for sure.

情況肯定發生了一些變化。

Maybe that understates it.

也許這低估了它。

And so just I think people are trying to understand what comes next and not asking about the people specifically, but just the qualities, the skill sets you were looking for?

所以我認為人們正在試圖了解接下來會發生什麼，而不是具體詢問這些人，而只是詢問你正在尋找的品質和技能？

And I guess how it informs like what you think needs to be different, right, as the company kind of charter through these next few years relative to maybe what you all brought to the party over the last 10-plus years.

我猜想它是如何傳達出你認為需要有所不同的，對吧，因為公司在接下來的幾年裡的章程可能與你們在過去十多年裡為聚會帶來的東西有關。

Yeah, is, first of all, the -- let me say, first of all, what has to be different in the business.

是的，首先，讓我說，首先，業務中必須有什麼不同。

As you know, we have announced what we believe is the strategy reset, and we are working hard to rebalance the growth model of the company and avoiding in the future overexposures to areas of the global world that becoming too volatile and more uncertain.

如您所知，我們已經宣布了我們認為的策略重置，我們正在努力重新平衡公司的成長模式，並避免未來過度暴露於全球變得過於不穩定和更加不確定的地區。

And so is the rebalancing for the certainty of growth.

為了確定成長而進行的再平衡也是如此。

Just to make an example of this because these actually in many areas.

只是舉個例子，因為這些其實在很多領域。

This concept of balance growth better exposing to the company, to the growth trends of the world is referred to countries, but it's also referred to channels, referred to consumer segments in a very broad way.

這種平衡成長的概念可以更好地向公司、世界的成長趨勢展示，它指的是國家，但它也指的是管道，更廣泛地指的是消費者群體。

And obviously, in this moment, is referred to the overall Asia Travel Retail and overall China market volatility, where we have rebalanced 10 points in only two years already.

顯然，此時此刻，我們指的是整個亞洲旅遊零售和整個中國市場的波動，我們在短短兩年內就已經重新平衡了 10 個點。

And this year, more rebalance will happen.

今年，將會發生更多的再平衡。

And then this refer to channels where the proportion, for example, of global department stores versus the other channels, which in this moment are growing faster, is changing in favor of the winning channels and et cetera.

然後，這指的是通路，例如，全球百貨公司與其他通路的比例（目前成長速度更快）正在發生變化，有利於獲勝管道等。

So all this work, by the way, on consumer is, obviously, the penetration of young consumers to mention one.

順便說一句，所有這些工作都針對消費者，顯然，年輕消費者的滲透就是其中之一。

So all these important strategic rebalancing elements is something that we believe we need to continue to do.

因此，我們認為我們需要繼續做所有這些重要的策略再平衡要素。

And we need leadership that has the characteristic that can really look at the business in this way.

我們需要具有能夠真正以這種方式看待業務的領導力。

And so a big understanding of the global market dynamics and understanding on the global consumers and continuing the work that we have started of focusing the company on the consumers and on the big consumer changes that are happening around the world leadership that will focus on with a good understanding of the global business and being able to leverage global growth wherever growth happen.

因此，對全球市場動態和全球消費者的深入了解，並繼續我們已經開始的工作，將公司的重點放在消費者和世界各地正在發生的重大消費者變化上，領導層將重點放在對全球業務有良好的了解，並能夠在任何成長的地方利用全球成長。

And also, we are a company of brands, and it's very important that our leadership team continue to be an outstanding brand builder and been able to build brand equities, but also innovation and the quality of the brand of responding to different targets around the world and the ability of brands to adapt to the various market consumer segments around the world with the concept that we called in the past, local relevance that is becoming even more important.

而且，我們是一家品牌公司，非常重要的是我們的領導團隊繼續成為傑出的品牌建立者，能夠建立品牌資產，同時也能夠響應世界各地不同目標的創新和品牌品質品牌適應世界各地不同市場消費群體的能力，我們過去稱之為本土相關性的概念變得更加重要。

For example, the actions that correspond to this intention are building in China research centers in Shanghai or in building factories in Asia that will bring talents to our portfolio in the future.

例如，與這一意圖相對應的行動是在上海建立中國研究中心或在亞洲建立工廠，這將為我們未來的投資組合帶來人才。

So those are -- the part of the strategy needs to be continued.

所以這些是——戰略的一部分需要繼續。

And there is then the need of accelerating these strategies.

因此需要加快這些策略的實施。

And there is the need also as told as part of the PRGP to make the organization faster, in reacting to trends, but also faster in making decisions across the globe and aligning on the changes that are needed to react, so what we call the increase of speed and increase of agility, which are just two words, but behind us two words, there's a lot of specific changes that new leadership will intend to bring in the organization is already frankly working on it and need to be capable of doing this.

作為 PRGP 的一部分，還需要使組織更快地對趨勢做出反應，同時也需要更快地在全球範圍內做出決策並調整反應所需的變化，因此我們稱之為增長速度和敏捷性的提高，這只是兩個詞，但在我們這兩個詞的背後，有很多新的領導層打算帶來的具體變化，組織已經坦率地致力於這些變化，並且需要有能力做到這一點。

That's why I'm personally very happy that the Board, at the end selected internal succession because the internal succession in that area of the ability to bring this organization fast to important changes with the right speed and also the ability to understand what has to be changed in order to increase agility, frankly, visibility is stronger in very talented internal leaders that would be external, but again, that's my point of view.

這就是為什麼我個人非常高興董事會最終選擇了內部繼任，因為該領域的內部繼任能夠以正確的速度使該組織快速實現重要變革，並且能夠了解必須做什麼為了提高敏捷性而進行的改變，坦率地說，非常有才華的內部領導者的可見性更強，而外部領導者則更明顯，但這也是我的觀點。

And then the understanding of how to better allocate our resources to the big changing trends of the world is also a characteristic that the new leadership needs to have and that is supported by -- so the quality, obviously, of what the Board chose for future leadership, but also by the knowledge of these people about the internal systems and where we are.

然後，了解如何更好地將我們的資源分配給世界不斷變化的趨勢，也是新領導層需要具備的一個特徵，並且得到了董事會為未來選擇的質量的支持。內部系統和我們所處位置的了解。

So net, we believe we need brand builders, but we need also people that will act with urgency, speed, courage to make the needed changes.

因此，我們相信我們需要品牌建立者，但我們也需要那些能夠緊迫、快速、勇敢地採取行動以做出所需改變的人。

I will support this courage -- this change in my transition work with the team, and we are looking forward to for the new team to add a fast impact in what has to change, but also for the new thing to recognize the strength that you mentioned in your question.

我將支持這種勇氣——我與團隊的過渡工作中的這種變化，我們期待新團隊在必須改變的事情上增加快速的影響，同時也讓新事物認識到你的力量。提到。

There was -- there are the strengths, not only the Tracey and I build in the last many years together in the company, but also the strength has always been in this company, the values of this company, the long-term quality of the brands and the strength the part of the heritage of this company.

有－有優勢，不僅是我和特蕾西在過去的多年里共同建立的公司，而且是這家公司一直存在的優勢，這家公司的價值觀，我們的長期品質。遺產的一部分。

So these historical strengths will be retained, but there will be some fast change in reacting to the new realities.

因此，這些歷史優勢將被保留，但在應對新現實方面將會發生一些快速變化。

And I personally believe that the new leadership team will be able to bring the kind of improvements and acceleration that, obviously, all of you are expecting from us in the next years.

我個人相信，新的領導團隊將能夠帶來你們所有人在未來幾年對我們的期望所帶來的改進和加速。

Rupesh Parikh, Oppenheimer.

魯佩什·帕里克，奧本海默。

I just wanted to go to the cash flow statement.

我只想查看現金流量表。

So I just want to get a sense of if there's opportunities to further reduce CapEx to better align with the weaker earnings part of the business currently?

因此，我只是想了解是否有機會進一步減少資本支出，以更好地適應目前業務較弱的盈利部分？

And then I just wanted to also get your thoughts on the health of inventory as you see it to that?

然後我也想了解您對庫存健康狀況的看法？

Yeah.

是的。

So -- and I'll start with CapEx.

那麼，我將從資本來源開始。

We have already reduced CapEx from what we had initially expected to invest this year, and that is certainly one of the areas that we're looking on as it relates to cash, along with obviously, improvements in working capital.

我們已經減少了今年最初預期投資的資本支出，這當然是我們正在關注的領域之一，因為它與現金有關，顯然也與營運資本的改善有關。

We made some big improvements last year as it relates to inventory.

去年我們在庫存方面做出了一些重大改進。

So our inventories are in pretty good shape.

所以我們的庫存狀況非常好。

But obviously, given the further sales declines, that is something that we are very much focused on in terms of making sure we are faster to react and respond to sales declines in our markets.

但顯然，考慮到銷售額的進一步下降，我們非常關注這一點，以確保我們能夠更快地對市場的銷售額下降做出反應。

And keeping the obsolescence in discounting under tighter control.

並嚴格控制折扣中的過時現象。

So we've gotten much more agility in our planning processes and the connection with certainly our supply chain to make sure that we're making the right -- taking the right decisions as it relates to production as well as the overall management of the network.

因此，我們的規劃流程以及與供應鏈的連結變得更加敏捷，以確保我們做出正確的決定——在涉及生產以及網路整體管理時做出正確的決策。

Bonnie Herzog, Goldman Sachs.

邦妮·赫爾佐格，高盛。

I actually wanted to circle back to Asia Travel Retail with a question.

我實際上想帶著一個問題回到亞洲旅遊零售。

You mentioned the lower replenishment orders.

您提到了較低的補貨訂單。

So could you give us a sense of maybe where retail inventory levels are currently maybe versus a year ago?

那麼您能否讓我們了解目前的零售庫存水準與一年前相比可能在哪裡？

And how much further destocking you expect, I guess, ultimately, how do you sell-in, sellout trends to evolve throughout the balance of the year?

我想，您最終預計會進一步去庫存多少，在今年餘下的時間裡，您將如何看待銷售、銷售趨勢？

Yeah.

是的。

So we definitely have lower levels of inventory in the trade relative to last year and even last quarter.

因此，與去年甚至上季相比，我們的貿易庫存水準肯定較低。

So we have made progress.

所以我們已經取得了進展。

As I said in the prepared remarks, as it relates to bringing down the inventory and trade in Asia Travel Retail because of deceleration of the market, we didn't make as much progress as we had expected.

正如我在準備好的發言中所說，由於市場減速而導致亞洲旅遊零售業的庫存和貿易下降，因此我們沒有取得預期的進展。

So it is taking a little bit longer.

所以需要更長的時間。

But again, we're not giving guidance for the second half of the year, but we do expect even in Q2 to be able to make -- assuming no more significant change than what we've reflected in our Q2 guidance.

但同樣，我們不會給出下半年的指導，但我們確實預計即使在第二季度也能夠做出——假設沒有比我們在第二季度指導中反映的更重大的變化。

Some more progress in terms of inventory in the trade.

貿易庫存方面取得更多進展。

Right now, it's really a function of the market volatility.

目前，這實際上是市場波動的函數。

Some of the trade that had built up or the inventory that had built up during the pandemic years, we have managed that down.

我們已經控制了在大流行期間建立的一些貿易或庫存。

And now it's a matter of the current market fluctuations that's impacting the levels of inventory that we have in the trade, but we're in a much healthier place than we were certainly a year ago, given the significant actions that we took, particularly in the first half of the year to bring our inventory levels down.

現在，當前的市場波動正在影響我們在貿易中的庫存水平，但考慮到我們採取的重大行動，特別是在今年上半年我們的庫存水平有所下降。

And to give a dimensionalization just to add what Tracey saying, is we actually have the level in the last several years, but the market is lower than it was in the previous year.

給一個維度，補充特蕾西所說的，我們實際上達到了過去幾年的水平，但市場低於前一年。

So that we should need to continue doing some work.

所以我們需要繼續做一些工作。

But definitely, there's been extraordinary progress, and I would like everyone to know that the team is very focused in this progress and also our vision of quarter 2 reflect the need to continue this never let pass more than a few months when we decided to reflect the market trend also in the level of inventories.

但毫無疑問，已經取得了非凡的進展，我希望每個人都知道，團隊非常專注於這一進展，而且我們對第二季度的願景反映了繼續下去的必要性，當我們決定反思時，永遠不要讓這種情況過去超過幾個月。

Olivia Tong, Raymond James.

唐奧立，雷蒙德詹姆斯。

I wanted to ask more about the Q2 outlook, more so for profit than sales and whether you could talk about what's embedded from a deleveraging aspect versus maintaining investment versus perhaps more difficulty in achieving savings as part of the PRGP.

我想更多地詢問第二季度的前景，更多的是利潤而不是銷售額，以及您是否可以談談去槓桿化方面與維持投資方面的嵌入內容，以及作為 PRGP 的一部分實現儲蓄的難度。

Effectively, just helping us bridge from sales to EPS, is it like a much bigger sequential dollar increase than in the years past and up pretty considerably on a year-over-year basis as well.

實際上，只是幫助我們從銷售額到每股盈餘之間建立橋樑，這就像比過去幾年更大的連續美元成長，而且同比也有相當大的成長。

So essentially, what's driving costs up so much in Q2 to help us assess what that pressure looks like in the second half of the year when you're not giving us additional color?

因此，從本質上講，是什麼導致第二季度的成本上漲如此之多，以幫助我們評估下半年當你們不給我們提供額外信息的情況下壓力會是什麼樣子？

Okay.

好的。

So I'll give it a shot, Olivia.

所以我會嘗試一下，奧利維亞。

So I would start with gross margin.

所以我將從毛利率開始。

We expect that gross margin will continue to improve in the second quarter.

我們預計第二季毛利率將繼續改善。

As I said in the prepared remarks, not as much year-over-year as in the first quarter.

正如我在準備好的發言中所說，年比增幅不如第一季。

But from first quarter to second quarter, we will expect -- we do expect even on declined sales, a further improvement in gross margin.

但從第一季到第二季度，我們預計，即使銷售額下降，毛利率也會進一步提高。

On a 6% to 8% decline in sales and that being in China and Travel Retail and Travel Retail, in particular, that does put pressure on our expense base.

銷售額下降 6% 至 8%，特別是在中國和旅遊零售領域，這確實給我們的支出基礎帶來了壓力。

We have talked in the past about both China and Travel Retail being quite profitable areas for us given the productivity per door in that region.

我們過去曾談到，鑑於該地區的每門生產力，中國和旅遊零售對我們來說都是相當有利可圖的領域。

And so that is putting some additional pressure on our expense base, but we also are protecting some investments very selectively in areas of the business that are working.

因此，這給我們的支出基礎帶來了一些額外的壓力，但我們也非常有選擇地保護正在運作的業務領域的一些投資。

And so it's a big quarter for us, obviously, with holiday.

因此，顯然，對我們來說，這是一個重要的季度，有假期。

We do have some new innovative advertising that we are doing behind some of our faster growth areas in order to make sure that we do set up the business to have the best holiday possible in light of the declining sales and 11/11 as well as, obviously, going forward into the second half of the year.

我們確實在一些成長較快的領域後面做了一些新的創新廣告，以確保我們的業務能夠在銷售額下降和 11/11 的情況下度過最好的假期，以及，顯然，進入今年下半年。

So advertising is one area that is continuing to deleverage, selling as well, making sure that we have the right staff in our channels of brick-and-mortar distribution in order to execute the sales.

因此，廣告是繼續去槓桿化的領域之一，銷售也是如此，確保我們的實體分銷管道有合適的員工來執行銷售。

And then the other area that we've protected strategically this year and continue to do so, obviously, rationalizing that as we see performance come through is store investments.

然後，我們今年策略性保護並繼續這樣做的另一個領域，顯然，隨著我們看到的業績表現而合理化，是商店投資。

And so we have brands like Le Labo and Jo Malone, who are freestanding store brands in addition to other channels of distribution, but doing quite well and growing, and we are investing in their store base as well.

因此，我們擁有像 Le Labo 和 Jo Malone 這樣的品牌，除了其他分銷管道之外，它們都是獨立的商店品牌，但表現相當不錯，並且不斷增長，我們也在投資他們的商店基礎。

And so those are the areas predominantly that we are protecting from an investment standpoint.

因此，從投資的角度來看，這些是我們主要保護的領域。

And it relates to the PRGP, what we had had previously, and again, I'll reiterate it, is we expected the first half of this year and really much of this year to see PRGP benefits in our gross margin, which we're obviously seeing and more benefits starting in the second half of the year as it relates to some of the restructuring activities that we are taking under the program.

這與我們之前的 PRGP 有關，我再次重申，我們預計今年上半年以及今年的大部分時間我們的毛利率都會看到 PRGP 的收益，我們正在顯然，我們在下半年開始看到更多的好處，因為這與我們根據該計劃進行的一些重組活動有關。

And so the cadence of when to actually see some of those expenses reflected, obviously, being offset with some of the sales declines in the first half of the year would be in the second half of the year.

因此，顯然，何時真正看到其中一些費用反映出來，並被上半年的一些銷售下降所抵消，將是在下半年。

But again, be mindful that the -- when you have mid-single-digit declines in your business, it does create deleverage on the rest of the business that is -- the PRGP is helping, but it's still deleveraging.

但再注意，當你的業務出現中個位數下降時，它確實會對其他業務產生去槓桿化，即 PRGP 正在提供幫助，但它仍然在去槓桿化。

And the only thing I want to add, again for perspective to what Tracey explained, is the fact that there is a mix factor because where the markets decline.

我唯一想補充的是，再次從特雷西解釋的角度來看，市場下跌是混合因素。

The majority of the change we are proposing is as we explained China market and travel retail Asia market.

我們提議的大部分變革是我們解釋的中國市場和亞洲旅遊零售市場。

These are two markets where we have big market shares and with big market share can scale and we scale and profitability.

在這兩個市場中，我們擁有很大的市場份額，並且擁有較大的市場份額可以擴大規模，我們可以擴大規模並提高獲利能力。

So those are important profitable markets with us where the decline is happening.

因此，這些對我們來說是重要的獲利市場，但正在下滑。

And this important decline of markets where we have scale, market share and profitability, obviously, it's more painful in terms of mix impact on a single quarter by quarter two that if the decline was more average around the world, which is not, in this case, is very focused on those two issues.

顯然，我們擁有規模、市場份額和盈利能力的市場的這種重要下降，就單個季度到第二季度的混合影響而言，如果下降幅度在全球範圍內更為平均，那麼這會更加痛苦，而在這個例子中，情況並非如此。

And ladies and gentlemen, with that, we've reached the end of the allotted time for today's question-and-answer session and today's conference call.

女士們、先生們，今天的問答環節和電話會議的規定時間就到此結束了。

We do thank you for attending today's presentation.

我們非常感謝您參加今天的演講。

You may now disconnect your lines.

現在您可以斷開線路。