雅詩蘭黛 (EL) 2025 Q1 法說會逐字稿

Good morning and welcome to the A LA company' Q1 fiscal 2025 earnings release and conference call. All participants will be in a listen-only mode. Should you need assistance? Let me say no, a conference specialist by pressing the star key followed by zero.

早安，歡迎來到 A LA 公司 2025 財年第一季財報發布和電話會議。所有參與者將處於僅聽模式。您需要協助嗎？讓我說不，會議專家按星號鍵後面跟著零。

After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star and then one using a touchtone telephone to withdraw all your questions. You may press star two.

今天的演講結束後，將有機會提問。您可以按星號，然後使用按鍵式電話按一個來撤回所有問題。您可以按星二號。

Please also note today's event is being recorded at this time. I'd like to turn the floor over to Rainy Mancini, Senior Vice President of investor relations. Ma'am. Please go ahead.

另請注意，此時正在記錄今天的活動。我想請投資者關係高級副總裁雷尼·曼奇尼 (Rainy Mancini) 發言。女士。請繼續。

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

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。由於我們今天的許多言論都包含前瞻性陳述。讓我向您推薦我們的新聞稿和我們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，以方便對我們的基礎業務的討論。除非另有說明，否則對我們財務業績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的。所有有機淨銷售額成長也排除了收購、資產剝離、品牌關閉和外幣換算的不可比影響。

You can find reconciliations between GAAP and Nongaap measures in our press release and on the investors section of our website as a reminder, references to online sales include sales. We make directly to our consumers through our brand dotcom sites and through third party platforms.

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 Nongaap 衡量標準之間的調整表，以提醒您，線上銷售的參考內容包括銷售。我們透過我們的品牌網路網站和第三方平台直接向消費者銷售產品。

It also includes estimated sales of our products through our retailers' websites. Throughout our discussion, our our profit recovery and growth plan will be referred to as our PR GP. During the Q&A session. We ask that you please limit yourself to one question so we can respond to all of you within the time scheduled for this call. And now I'll turn the call over to Fabrizio.

它還包括我們的產品透過我們的零售商網站的估計銷售額。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 PR GP。在問答環節中。我們要求您只提出一個問題，以便我們能夠在本次電話會議的預定時間內回覆所有人。現在我將把電話轉給法布里齊奧。

Thank you and hello to everyone for the first quarter. We anticipated a challenging start to fiscal year 2025. Our results today are largely consistent with the outlook for the quarter we offered in August, organic sales decreased 5% at the low end of the expected range driven by double digit declines in mainland China. Global travel, retail primarily to Asia and Hong Kong, 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%.

謝謝大家，並向第一季的大家問好。我們預計2025 財年將迎來一個充滿挑戰的開局。的下限。全球旅行、零售主要集中在亞洲和香港，不包括這三個地區。我們全球其他業務的銷售額在報告和有機基礎上均成長了 1%。而零售額成長速度則從 2% 加速至 3%。

A number of markets continue to deliver organic sales growth in our first quarter, led by Japan, where we gain prestige beauty share the developed markets in India. And our emerging markets also grew organically while North America declined modestly as it compared to a big innovation launch calendar in the previous year.

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，我們在印度的已開發市場中獲得了聲譽。我們的新興市場也實現了有機成長，而北美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 totally reported sales adjusted gross margin expanded by over 300 basis points. Initiatives of the PRG P drove improvements. As Tracy will describe, we strategically increased a 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 leverage, we deliver adjusted ts of 14¢ better than 11¢ in the year ago period and 4¢ above the high end of our outlook range.

儘管報告的銷售總額水準較低，但調整後的毛利率仍增加了 300 個基點以上。 PRG P 的措施推動了改進。正如特雷西將描述的，我們策略性地增加了支出佔銷售額的百分比，以支持我們強大的創新管道，以實現調整後營業利潤率擴張超過 100 個基點。儘管經營槓桿很大，但我們的調整後目標比去年同期的 11 美分高出 14 美分，比我們的展望範圍的上限高出 4 美分。

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 1st, the prestige beauty industry reported retail sales in mainland China further weakened sequentially from a 10% decline in our fourth quarter to a mid 10s percentage decrease. 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 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 prestigious beauty, we anticipate still strong declines near term for the industry.

展望未來，隨著本季和整個 10 月的發展，我們越來越明顯地發現 2025 財年我們面臨的宏觀阻力比我們預期的更大。 8 月 1 日，高端美容行業報告稱，中國大陸的零售額環比進一步疲軟，從第四季度的 10% 下降至 10% 左右的下降。重要的是，在行業推動下，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，引領了護膚品市場份額的增長，而中國大陸彩妝消費者信心的份額增長在第一季度進一步減弱。雖然我們相信新的經濟刺激措施帶來了中長期的穩定潛力，並最終促進了著名美容行業的成長，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 Travere said continue to be significantly pressured as commercial levels are still far lower than prepandemic.

其次，特拉維爾表示，由於商業水平仍遠低於疫情前，亞洲的高端美容產業持續面臨巨大壓力。

Third, the US prestige beauty industry, retail sales slowed sequentially from high single digit growth in our four quarter to mid single digit growth as elevated levels of inflation driven pricing fades while this is still good growth. The month of August and September posts lower growth than July 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.

第三，美國高端美容行業的零售額連續放緩，從第四季度的高個位數增長放緩至中個位數增長，因為通膨驅動的定價水平上升逐漸消退，但這仍然是良好的增長。令人鼓舞的是，8 月和 9 月的成長率低於 7 月。儘管美國知名美容產業的零售額成長速度較快。我們公司的零售額成長加速，我們進一步減少了聲譽美容份額的損失。

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 with this complex industry landscape including the particularly difficult in difficulty in forecasting. The timing of market stabilization and recovery in China and Asia travel retail and in the context of the retirements of Tracy and myself, we are solely issuing an outlook for the second quarter and withdrawing our fiscal year 2025 outlook.

我們相信，隨著我們增加對高成長通路的投資，我們正在穩步穩定美國股票。我們的目標是在這個複雜的行業格局中恢復聲望美容份額的成長，其中包括特別難以預測的行業。中國和亞洲旅遊零售市場穩定和復甦的時機，以及在 Tracy 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 re accelerate 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大的財務靈活性，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 and Asia travel retail. As we do not expect to see benefit from the stimulus in the near term.

我們對第二季的展望反映了中國和亞洲旅遊零售業面臨的廣泛阻力。因為我們預期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重置，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 strategy 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% points since fiscal year 2022.

我們此時重新調整的策略重點是繼續重新平衡我們的區域成長，不斷改進我們對中國市場波動性的曝險，自 2022 財年以來，中國市場波動性已經下降了近 10%。

At the strategic reset core is the P RGP aimed at restoring sustainable long term organic sales growth in part through generating investment opportunities as well as rebuilding profitability and increasing agility.

策略重置的核心是 PRGP，旨在部分透過創造投資機會以及重建盈利能力和提高敏捷性來恢復可持續的長期有機銷售成長。

For fiscal year 2025 we are focused on executing the PR GP with excellence 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.

2025 財年，我們的重點是在第一季出色地執行 PR GP。我們世界各地團隊的專注和奉獻使我們為該計劃的交付奠定了堅實的基礎。

We have made good progress in operationalizing the P LGP evident in our gross margin expansion despite the pressure to mix from skincare decline as well as beginning to right size areas of our organization and address expenses to reflect the lower than expected sales growth in the last two fiscal years.

儘管面臨來自護膚品下滑的壓力，但我們在實施P LGP 方面取得了良好進展，這在我們的毛利率擴張中顯而易見，並且開始調整我們組織的規模並解決費用問題，以反映過去兩年低於預期的銷售成長財政年度。

As you know, our strategic reset for fiscal year 2025 also has the following five priorities. Green light skincare capitalize on the multiple growth drivers of high end fragrance move faster in leveraging winning channels. Launch a creative innovation inclusive on new big opportunities and modernized precision marketing by leveraging data and A I the latter which we call our consumer centric growth model.

如您所知，我們對 2025 財年的策略重置還有以下五個優先事項。綠光保養品利用高端香水的多重成長動力，在利用致勝管道方面更快行動。透過利用數據和人工智慧，推出包含新的巨大機會和現代化精準行銷的創意創新，後者我們稱之為以消費者為中心的成長模式。

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

今天，讓我分享我們在護膚香水方面的進展以及利用護膚的成功管道。隨著我們為市場帶來令人興奮的創新，吸引不同的消費群體，我們開始實現推動消費者對夜間護膚儀式的需求的雄心。

Our brand has long been a leader in the science of skin recovery during sleep with its advanced night repair serum, its new advanced night repair overnight treatment drove a standard regimen by both loyalists and new consumers. This launch coupled with a brand new moisturizer in the Supreme franchise focused 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 Le Maire. Further contributed to our momentum in nighttime skin care. Its new rejuvenating night cream exceeded our expectation in Asia Pacific driven by the product of a sounding appeal in China where we saw excellent new consumer acquisition trend and Lemaire realized strong share gains in prestige skin care four clinic. Among its nighttime innovation is the smart clinical repair AM PM retinoid balm stick.

我們的品牌長期以來一直是睡眠期間皮膚恢復科學的領導者，其先進的夜間修復精華素、其全新的高級夜間修復夜間護理推動了忠實者和新消費者的標準養生法。此次推出，加上 Supreme 系列中一款全新的保濕霜，專注於改善膠原蛋白流失跡象，減少夜間可見細紋，導致 Le Maire 市場的護膚品有機銷售額實現了個位數的高增長。進一步推動了我們夜間護膚的勢頭。其新款煥膚晚霜超出了我們在亞太地區的預期，該產品在中國具有巨大的吸引力，我們看到了出色的新消費者購買趨勢，Lemaire 在著名皮膚護理四家診所中實現了強勁的份額增長。其夜間創新產品包括智慧臨床修復 AM PM 類視黃醇香膏棒。

It has been very well received in its initial markets demonstrating an ability with nighttime skin care to trade consumers up and into the brand with an approachable price point and unique form.

它在最初的市場上廣受好評，展示了其夜間護膚能力，以平易近人的價格和獨特的形式吸引消費者進入該品牌。

Both Lis bound and the franchise. New overnight recovery cream plus mask have compelling ingredient stories and strong clinical results which clinic scientists recently featured at the prestigious Dermatology conference in Amsterdam.

Lis 綁定和特許經營。新型夜間恢復霜加面膜具有令人信服的成分故事和強大的臨床結果，臨床科學家最近在阿姆斯特丹著名的皮膚病學會議上進行了介紹。

Indeed clinic focus on nighttime skin care. Builds upon the strategy. It began deploying earlier this calendar year to double down on its authentic dermatologists brand heritage. This strategy has been highly successful, evidenced by the clinic's fifth consecutive month of prestige, beauty share gains in the US through September turning to fragments our confidence in the category. Promising growth opportunity remains strong for the first quarter of fiscal year 2025 excluding global travel retail, our luxury and artisanal brands deliver mid single digit organic sales growth fueled by gains in every region.

事實上，診所專注於夜間皮膚護理。建立在戰略之上。該公司於今年稍早開始部署，以加倍鞏固其正宗的皮膚科醫生品牌傳統。這項策略非常成功，截至 9 月該診所在美國的聲望和美容份額連續第五個月增長，證明了我們對該類別的信心。不包括全球旅遊零售在內，2025 財年第一季的成長機會依然強勁，在每個地區的成長推動下，我們的奢侈品和手工品牌實現了中個位數的有機銷售成長。

Le Labo Jo Malone London and Kill and Paris were standouts from Le Labo significant double digit growth in China to Jon land. Impressive results, expanding with the male consumer to Killian Paris highly sought innovation and we are thrilled to have launched B and Beauty during the first quarter, beginning with a sophisticated collection of eight fragrances, four of which Abelman legacy sense reinvented for the modern era as we enter Fragrance, highly important holiday gifting season. We are complementing the strengths of our luxury and artisanal portfolio with activations and innovations from Esto and clinic to re accelerate their growth. As we are aiming to better capitalize on opportunities in the prestige tier of fragrance.

Le Labo Jo Malone London、Kill 和 Paris 表現突出，從 Le Labo 在中國到 Jon Land 的顯著兩位數增長。令人印象深刻的成果，隨著男性消費者擴展到基利安巴黎備受追捧的創新，我們很高興在第一季度推出了B and Beauty，首先推出了八款精緻的香水系列，其中四種是Abelman 傳統感為現代而重新設計的香水我們進入了香水這個非常重要的節日送禮季節。我們正在透過 Esto 和 Clinic 的活化和創新來補充我們的奢侈品和手工產品組合的優勢，以重新加速其成長。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 from the Amazon Premium Beauty store in the US to tiktok shop to shopee in Southeast Asia. Many of our brands expanded their reach to attract new consumers. Alongside these launches, we also strategically expanded the freestanding store footprint of our luxury and artisanal fragrance portfolio offering elevated experiential shopping. This exciting work continued into the second quarter when last week, our flagship brand launched in the US Amazon Premium Beauty Store.

現在讓我談談我們利用獲勝管道的支柱，從美國的亞馬遜高級美容店到東南亞的 tiktok 商店再到 Shopee。我們的許多品牌擴大了影響力以吸引新消費者。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。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. 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 for the 5th year in a row, we achieved carbon neutrality across our scope one and scope two greenhouse gas emissions and sourced 100% renewable electricity globally for our direct operations. 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.

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。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、術語表以及實現我們的棕櫚油目標。在 2025 年最後期限之前，我們連續第五年實現了範圍一和範圍二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。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 Tracy and myself as you know, tomorrow Akil Shva Stava becomes the company's CFO.

如你所知，特雷西和我自己宣布退休後，明天阿基爾·施瓦·斯塔瓦 (Akil Shva Stava) 將成為公司的財務長。

Akil has been a proven leader at the company for nearly a decade with demonstrated financial equipment. And we look forward to all he will accomplish on behalf of the company. I stand our deepest gratitude to Tracy for her significant contributions, Tracy embodies the very best qualities of a leader and we are a far stronger organization today. Given her dedication to all of us. We wish her every joy in her well earned retirement.

近十年來，阿基爾一直是公司公認的領導者，擁有成熟的財務設備。我們期待他代表公司所取得的一切成就。我對特雷西的重大貢獻表示最深切的感謝，特雷西體現了領導者的最佳品質，今天我們是一個更強大的組織。鑑於她對我們所有人的奉獻。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. Over 7,575 years of history as we announced the promotion of Stefan de la Ferri to be our next President NCO.

昨天是我們公司一個令人興奮的里程碑。超過 7,575 年的歷史，我們宣布晉升 Stefan de la Ferri 擔任我們下一任軍士長。

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

我很高興歡迎他從 1 月 1 日起擔任這一職務，我期待在接下來的幾個月裡支持無縫過渡。

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 energy to our employees. Thank you for your passion for our company and its incredible brands. I'm confident that you and this company that I love will be in great hands.

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，將使他能夠為我們的員工推動我們快速前進和充滿活力。感謝您對我們公司及其令人難以置信的品牌的熱情。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 Tracy.

我現在將把電話轉給特雷西。

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

謝謝法布里齊奧，大家好。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 expectation.

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 14¢ which exceeded our initial outlook for the quarter. Primarily due to the timing of certain expenses starting with our regions. Organic net sales in our Asia Pacific region decreased 11% mainly driven by further softening and overall prestige beauty due in large part to worsen consumer sentiment in mainland China.

我們調整後的每股收益為 14 美分，超出了我們對該季度的最初預期。主要是由於某些費用從我們的地區開始的時間安排。亞太地區的有機淨銷售額下降 11%，主要是由於中國大陸消費者信心惡化而導致整體聲譽進一步疲軟。

In addition, we experienced a net sales decline in hong Kong S AR 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 declines 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.

這些下降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實體店和線上通路實現兩位數增長。

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

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

Elsewhere in the net sales grew low, single digits benefiting from commercial activations like Estee Lauder's hashtag Night done right campaign as well as both existing products and new product launches including the Clinique pop franchise.

其他方面的淨銷售額增長較低，個位數的增長得益於商業活動，例如雅詩蘭黛的標籤“Night did right”活動，以及現有產品和新產品的發布，包括倩碧流行特許經營權。

Luxury fragrances was also strong, led by Lala Bo retailer and pure play sites. Drove overall double digit growth from online channels.

奢華香水也表現強勁，其中以 Lala Bo 零售商和純粹的遊戲網站為首。推動線上通路整體兩位數成長。

Organic net sales in the Americas decreased 1% in North America. Our retail sales in the US accelerated sequentially. However, our soft retail sales from Mac Aveta Tom Ford and two face led to overall lower net sales reflecting fewer replenishment orders for these brands. A strong competitive environment and the continued moderation of growth in prestige beauty in the US also contributed to the net sales decline.

美洲地區的有機淨銷售額下降了 1%。我們在美國的零售額連續加速。然而，Mac Aveta Tom Ford 和兩個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。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 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 from a category standpoint, organic net sales declined 8% in skin care and 6% in hair care 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 in the Americas and the markets of EMEA including from Estee Lauder with its successful night activations in the West and shipment for the products launch in Amazon's US premium beauty store, organic net sales in makeup decreased 2% driven by declines from Mac and two faced primarily reflecting the brand's retail softness in North America.

我們的團隊仍然專注於發展我們的通路分銷組合，以實現快速增長的消費者管道，過去八個月在亞馬遜美國優質美容店推出的七個品牌就證明了這一點，其中包括我們最近推出的雅詩蘭黛。正如Fabrizio 所提到的，這一戰略支點推動了我們在拉丁美洲的美國在線增長兩位數，巴西以化妝品為主導的持續淨銷售額增長推動了我們的獨立商店和專業多渠道的兩位數增長，從類別的角度來看，有機淨銷售額下降了8%。有機淨銷售額下降主要是由於亞太地區和亞洲旅遊零售業務的壓力，這遠遠抵消了我們在美洲和歐洲、中東和非洲市場經歷的增長，包括雅詩蘭黛在西方成功的夜間活動以及在亞馬遜美國高端美容店推出的產品出貨量，化妝品的有機淨銷售額下降了2%，原因是Mac 銷量下降，而兩項下降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.

該品牌的現有產品和其倩碧流行和幾乎口紅產品專營權的新創新。 2024 財年，該產品在亞馬遜美國高級美容店推出，主要推動了該品牌本季的成長。

Organic net sales and fragrance decreased 1% mainly due to declines from Tom Ford Clinique and S A. Lauder driven by pressures in both our Asia travel retail business in North America.

有機淨銷售額和香水下降了 1%，主要是由於我們在北美的亞洲旅遊零售業務面臨壓力，導致 Tom Ford Clinique 和 SA. Lauder 的銷售額下降。

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

這些下降被我們其他奢華香水的成長所部分抵消，特別是在亞太地區的歐洲、中東和非洲市場，受到英雄產品的推動。新的創新和有針對性的擴大消費者使我們的毛利率比去年增加了 310 個基點。很大程度上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.

我們也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措施。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 cost 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成本去槓桿化。

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 PR GP 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.

有了這一進展，我們很高興 PR GP 下的關鍵舉措開始解決我們在過去兩年中經歷的毛利率的具體壓力，包括我們在本季度繼續經歷的銷售壓力。

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 P RGP 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 P rgp'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，今年 P rgp 預計淨利潤的大部分預計將透過提高我們的毛利率來實現。大約 20% 的收益是透過減少某些營運費用來實現的。

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

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效益和營運支出，營業收入增加 33% 至 1.44 億美元，營業利潤率擴大 120 個基點至4.3%，而去年為3.1%。

Our effective tax rate for the quarter was 38.8% compared to 17.9% last year. 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, diluted eps was 14¢ compared to 11¢ last year. Due to the improving operating profit performance.

我們本季的有效稅率為 38.8%，而去年為 17.9%。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行的基於股票的補償的收益，攤薄每股收益為 14 美分，而去年為 11 美分。由於營業利潤表現改善。

Our plans under our previously communicated PR GP are on track and advancing. Well, 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 PR GP 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. 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 during the quarter. We utilized $670 million in net cash flows from operating activities compared to $408 million last year.

我們先前傳達的 PR GP 下的計劃正在步入正軌並正在推進。嗯，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的一些影響，並減輕銷售減少對PR GP 內某些舉措的影響，因為它與我們迄今為止的重組計劃有關，我們收取了 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。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本季的銷售成長。我們使用了 6.7 億美元的營運活動淨現金流量，而去年為 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 1st 2025. As a result, we recorded a charge of $159 million related to these agreements. 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 tel we invested $141 million in capital expenditures and we returned $240 million in cash to stockholders through dividends.

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。我們簽訂這些協議是為了應對針對公司的案件數量不斷增加，並積極幫助減輕與電話相關的不斷變化的訴訟環境帶來的未來風險，我們投資了1.41 億美元的資本支出，並返還了2.4 億美元的現金透過股利分配給股東。

As you read in our press release this morning, we declared a quarterly dividend of 35¢ per share. A reduction from our previous quarterly dividend of 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 35 美分。鑑於我們的獲利前景，我們將股息降低至更合適的派息率，因此我們的季度股息較上一季每股 66 美分有所減少。

And now turning to our outlook 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, 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 in Asia, travel retail and in the context of upcoming leadership changes. Let me expand a bit on some of these incremental pressures on the business.

現在轉向我們的展望，正如 Fabrizio 所提到的，我們已決定撤回 8 月提供的全年展望，而僅提供近期第二季度的展望。今天，我們並沒有輕易做出這個決定，我們相信，考慮到當前的環境，包括預測的難度、亞洲中國市場穩定和復甦的時機、旅遊零售以及即將到來的領導層變動的背景下，這是正確的行動。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.

第一的。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，但全年業績將持續放緩，包括第二季淨銷售成長小幅恢復。

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。這些地區消費者信心的惡化程度超出預期，預計短期內仍將持續。

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 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 second, the continued normalization of prestige beauty growth in other markets postpandemic 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 it is expected to further pressure our second quarter results, as mentioned earlier, we remain focused on realizing that benefits from our PR GP 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.

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。因此，我們認為，它們對我們在該地區業務的影響的時間和程度都不確定。我們現在預計，我們這些業務領域以及第二季度整體的近期淨銷售額將持續下降，這將為我們的每股收益增加壓力。性，預計將進一步對我們第二季的業績構成壓力，正如前面提到的，我們仍然專注於實現我們的PR GP 計劃的好處。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限度地提高其效益，發現新的成長機會並採取額外的節約措施。

Using October 24th spot rates of 1.078 for the EUR1.293 for the pound 7.126 for the Chinese Onean and 1,380 for the Korean Onean 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 1.078 兌換 1.293 英鎊、7.126 人民幣兌換英鎊以及 1,380 人民幣兌換韓幣，預計不會對第二季度報告的銷售額和每股收益產生重大影響。

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 traveling consumers in Hong kong S AR 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 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.

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%。主要由於中國大陸和亞洲旅遊零售業持續面臨的挑戰，我們已經討論了毛利率方面香港特別行政區旅遊消費者的持續低轉換率，我們預計第二季度將比去年有所增長儘管預計其擴張程度不會與我們在第一季看到的擴張水平相同，但回想一下，去年第一季的毛利率是本財年最低的，因為與去年相比，它受到高報廢費用和折扣的影響更大。其他三個季度的情況並沒有反映出我們在今年稍後為應對這些壓力和提高毛利率而實施的策略行動的好處。

We now expect our second quarter effective tax rate to be approximately 43% compared to 37.7% last year. 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 in our estimate of lower earnings compared to last year, we now expect second quarter adjusted EPS of 20 to 35¢ for a decrease between 60 to 77% versus prior year.

我們現在預計第二季的有效稅率約為 43%，而去年為 37.7%。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，由於股權獎勵的時間安排，該薪酬往往會在第二季度產生不成比例的影響。鑑於我們對獲利低於去年同期的預期，我們現在預計第二季調整後每股收益為 20 至 35 美分，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. However, as Fabrizio mentioned, we are encouraged by some bright spots that we are starting to see from proactive measures we have taken previously, 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.

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。然而，正如法布里奇奧所提到的，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，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）有信心繼續推動前進。

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 and reflecting on my past 12 plus years with the company, I am immensely proud of the many things that we have accomplished together to our valued investors. Thank you for your continued support, your patience and confidence in our long term growth strategy. And initial PR GP actions have been instrumental as we navigate through this intense period of volatility and the resulting impact it has had on our performance.

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，你們的堅定承諾、辛勤工作、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，而且在未來也同樣如此。感謝您對我們長期成長策略的持續支持、耐心和信心。當我們度過這段劇烈的波動時期及其對我們業績的影響時，PR GP 的初步行動發揮了重要作用。

I am optimistic in the company's ability to continue to take the appropriate decisive actions to manage through this for a long period of volatility and supported by the PR GP and the strong resolve 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長期的波動性感到樂觀，並得到公關普通合夥人和我們員工的堅定決心的支持，以逐步恢復更一致和可持續的銷售增長和更強的實力。

Thank you. And that concludes our prepared remarks. So we'll be happy to take your questions at this time.

謝謝。我們準備好的發言就到此結束。因此，我們現在很樂意回答您的問題。

Ladies and gentlemen, we will now begin the question and answer session to ask a question. You may press star and then one using a touchtone telephone. If you are using a speaker phone, we do ask that you please pick up your handset before pressing the keys to withdraw your questions. You may press star and two, once again, that is star and then one to join the question queue.

女士們、先生們，我們現在開始問答環節來提問。您可以使用按鍵式電話按星號，然後再按一個。如果您使用免持電話，我們要求您在按按鍵撤回問題之前先拿起聽筒。您可以再次按星號和二號，即星號和一號鍵加入問題佇列。

Our first question today comes from Dara Mosed from Morgan Stanley. Please go ahead with your question.

我們今天的第一個問題來自摩根士丹利的 Dara Mosed。請繼續你的問題。

Hey, good morning.

嘿，早安。

So the good morning. So clearly the external circumstances have worsened in the beauty category, particularly in China and Asia travel retail. As you mentioned, I just wanted to get your perspective on the internal reaction to that, you know, just from a productivity standpoint, is there more you can do beyond the PR P program, Tracy, you alluded to that in your prepared remarks, but just with the significant pressure on the business and, 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 and then b just the other side of that is how much reinvestment might be needed going forward to drive a top line recovery. So any thoughts there in, in light of the industry conditions at this point would be helpful? Thanks.

那麼早安。顯然，美容品類的外部環境已經惡化，特別是在中國和亞洲旅遊零售業。正如你所提到的，我只是想了解你對此的內部反應，你知道，僅從生產力的角度來看，除了PR P 計劃之外，你還可以做更多的事情嗎，Tracy，你在準備好的發言中提到了這一點，但鑑於業務面臨巨大壓力，以及今天的股息削減，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，您正在考慮的潛在領域，然後只是另一方面是未來可能需要多少再投資才能推動營收復甦。那麼，鑑於目前的行業狀況，其中的任何想法都會有所幫助嗎？謝謝。

Sure, sure. There are so obviously, given the situation and I discussed this a little bit in the prepared remarks. We, we are evaluating additional actions related to the PR GP and beyond. Given the, given the continued pressure on the business. So we have identified some additional cost savings to offset some of the volume pressure that that we saw in the first quarter. There are more plans under discussion as it relates to the PR GP. As it relates to investment, you know, we did protect some investment in the first quarter. We had actually did experience a bit of deleverage in more of our consumer facing areas like you know, marketing, advertising and promotion as well as selling. We will do that again in the second quarter. So that is some of what is embedded in the guidance. And obviously, Stephan and and Akil will be communicating going forward, what the plans are that are in process right now being worked on in terms of, you know, the new actions that might be incorporated under the PR GP as well as other growth areas as well. But, you know, we are very much focused as we have communicated previously under the PR GP to free up costs, obviously not only to improve our margin, but importantly to fuel additional growth for our brands. And you know, more to come on that.

當然，當然。考慮到目前的情況，很明顯，我在準備好的發言中對此進行了一些討論。我們，我們正在評估與 PR GP 及其他相關的其他行動。鑑於業務持續面臨壓力。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。還有更多與 PR GP 相關的計劃正在討論中。因為涉及投資，你知道，我們第一季確實保護了一些投資。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，例如你知道的，行銷、廣告、促銷以及銷售。我們將在第二季度再次這樣做。這就是指南中包含的一些內容。顯然，史蒂芬和阿基爾將繼續溝通，目前正在製定的計劃是什麼，你知道，可能會納入 PR GP 以及其他成長領域的新行動以及。但是，您知道，我們非常專注，因為我們之前在 PR GP 下進行了溝通，以釋放成本，顯然不僅是為了提高我們的利潤，而且重要的是為了推動我們品牌的額外成長。你知道，還會有更多的事情發生。

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 PR GP, a lot of work. 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. And there are some exciting progress happening as demonstrated by some results in the the market share that some new innovation created while using this precision marketing techniques. 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 in many markets, this makes the return on the investment that we are doing better and more productive. So it's a combination of investing more trace plan and making every dollar count more.

我想補充一點，除了我們需要再投資的資金量之外，再投資還包括提高投資品質以及我們作為 PR GP 的一部分所做的投資回報，很多工作。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，這基本上是對我們在每個市場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該地區的世界。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的一些結果表明，正在發生一些令人興奮的進展。然後，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管道中時，就像我們所做的那樣，正如我所解釋的那樣在我在許多市場中準備好的演講中，這使得我們正在做的投資得到更好、更富有成效的回報。因此，這是投資更多追蹤計劃和讓每一美元更有價值的結合。

Our next question comes from Steve Powers from Deutsche Bank. Please go ahead with your question.

我們的下一個問題來自德意志銀行的史蒂夫鮑爾斯。請繼續你的問題。

Thank you very much and good morning. I was hoping we could step back a little bit just amidst all this volatility. Get some perspective on how you see your market shares standing across key markets, your expectation for how those market shares should trend, you know, you and and over the balance of the fiscal year and to the extent possible. How, how you see different regions contributing to the negative six to negative eight organic growth call for second quarter. That would that would be helpful. Thank you very much.

非常感謝，早安。我希望我們能夠在所有這些波動中退一步。了解您如何看待您的市場份額在關鍵市場中的地位，您對這些市場份額的趨勢的預期，您知道，您以及在本財年的剩餘時間內並儘可能。您如何看待不同地區對第二季負六到負八有機成長的貢獻。那會有幫助的。非常感謝。

Yeah. So in, in terms of the regions and and Steve, you know, we normally don't give regional guidance, just our overall guidance. But obviously with down six to down eight, we would expect as we said, continued pressure from China and travel retail we've also seen and I think for retail, we touch on this point, a point on the market share, we have seen slowing in, in other markets as well. So when you think about last year, first quarter, you know, we had double digit growth in in several markets in North America in a PAC. And we've seen that progressively decelerate, still positive. And I'm talking market now, but progressively decelerate throughout throughout the four quarters. So, you know, part of the uncertainty is, you know, whether or not those markets will, you know decelerate again in the in the second quarter. But but we are expecting that China and travel retail will be down meaningfully in the second quarter as as they were in in the first quarter. 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 you know, resulting obviously in, in the Q2 guidance that we gave.

是的。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。但顯然，正如我們所說，我們預計下降六到八，來自中國和旅遊零售的持續壓力我們也看到了，我認為對於零售業，我們觸及了這一點，市場份額的一點，我們已經看到其他市場的成長也放緩。因此，當你想到去年第一季時，你知道，我們在北美的幾個 PAC 市場實現了兩位數的成長。我們已經看到這種趨勢逐漸減速，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。所以，你知道，部分不確定性是，你知道，這些市場是否會在第二季再次減速。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。法布里奇奧談到了第一季業績的其餘業務。第二季略有回升。但你知道，這顯然導致了我們給出的第二季度指引。

Yeah. And in any market share, I mean, maybe I should, we, we can speak about the market share plans in every single region of the world. But let me focus on what will make a big difference with China us Japan. So the big markets and so in China, I think this quarter in a in a declining market, we had the proof that when we focus on the strategy that we just discussed, meaning focusing on skin care in the case of China Theni skin care, focusing on winning in the growing channels, focusing on improving our precision marketing and focusing on leveraging very strong innovation. We can get market share growth in a very difficult market situation in China. The growth we got in skincare which is more than one full point of market share growth in skin care is very very strong and this is driven by this innovation, for example, the La Mer brand and their own innovation, we grew also market share and make up where the activity, for example was less than in skin care. Our activity was less than in skincare. We still we grow market share. This shows at least the clear strengths of our brand equities that when activated correctly create growth. So in China, we are optimistic on the opportunity in the future, Japan was another great example where we focused particularly in the case of Japan on our fragrance portfolio with the new Lala store and with the new Jon stores in Tokyo that are flagship stores. And the result has been an extraordinary slightly 200 points of market share gain in fragrance becoming the number one fragrance company in Japan in only one quarter. Again shows that the focus when we put the focus on the activation of the strategy reset drivers, we get extraordinary result. 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 go to get. And finally on America, I want to say that is that our retail trends in America was, was was stronger, was accelerated from 2% the quarter 4 to 3% this quarter. So improving and improving in a declining market growth is crazy. Just explain. So the market growth went from 9% to 5%. So in a in steel growth but declining level of growth, we we were growing better and accelerating retail, which means practically in America, we are reducing the market share, GAAP growth. And as I said in my prepared remark, we we look forward to a stabilization and the tactics which are working here are again very visible in what is the reaction of our clinic brand, which is a obviously a classy brand, a brand which is there for many years is the market leader in skin care in the market and it's growing now market share for five months in a row driven by the big reposition and leveraging the trends in their skin care particularly but also leveraging the huge success in the cap in this moment as we explained in the prepared remarks. And also it has been driven obviously by the Amazon distribution. But I want to notice that at the same time, the successor clinic in Ulta has been very, very strong showing that the Amazon is bringing in new customers is not just speaking to the same customer is at the market share, adding new customers and allowing all our new channels, partners like Amazon or historical strong partners like Ulta to get success on the same brands. And and this is happening also fragrances in many other in many other activities we have in the market. So we are focused on continue accelerating market share gains in markets like China and Japan and focus on achieving first the stability and then again, 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 Tracy and I gave to the previous question, which is the increased investment and increased and precision of these investments. You I hope you see the full picture of what we are trying to do even in a moment where the the bottom of the markets that in China and travel detail are, you know, drop under us. We are keeping the focus on this recovery of market share in every single market.

是的。在任何市場份額方面，我的意思是，也許我應該，我們，我們可以談論世界每個地區的市場份額計劃。但讓我重點關注什麼會對中美日本產生重大影響。因此，在中國這樣的大市場，我認為本季在市場下滑的情況下，我們有證據表明，當我們專注於我們剛才討論的策略時，即在中國 Theni 護膚品的情況下專注於護膚品，專注於在不斷成長的管道中獲勝，專注於提高我們的精準行銷，並專注於利用非常強大的創新。我們可以在中國非常困難的市場情況下獲得市場份額的成長。我們在護膚品領域取得的成長超過了護膚品市場份額成長的一個百分點，這是非常強勁的，這是由創新驅動的，例如，La Mer 品牌和他們自己的創新，我們的市場份額也有所增長，化妝的活動在哪裡，例如在護膚方面就比較少。我們的活動少於護膚品。我們仍在擴大市場佔有率。這至少顯示了我們品牌資產的明顯優勢，如果正確激活，就會創造成長。因此，在中國，我們對未來的機會持樂觀態度，日本是另一個很好的例子，我們特別關注日本的香水產品組合，包括新的 Lala 商店和東京的新 Jon 商店，它們都是旗艦店。結果是，香水市場份額在短短一個季度內就小幅增長了 200 個百分點，成為日本排名第一的香水公司。再次表明，當我們將重點放在策略重置驅動程式的啟動上時，我們會得到非凡的結果。因此，坦白說，這些都是綠色點，表明潛在的品牌資產是多麼強大，如果正確激活，我們就會得到我們需要得到的東西。最後關於美國，我想說的是，我們在美國的零售趨勢非常強勁，從第四季的 2% 加速到本季的 3%。因此，在市場成長下降的情況下不斷改進和改進是瘋狂的。請解釋一下。因此市場成長率從 9% 上升到 5%。因此，在鋼鐵成長但成長水準下降的情況下，我們成長得更好並加速零售，這實際上意味著在美國，我們正在減少市場份額和公認會計準則成長。正如我在準備好的演講中所說，我們期待著穩定，在這裡起作用的策略再次在我們診所品牌的反應中非常明顯，這顯然是一個優雅的品牌，一個在那裡的品牌多年來一直是皮膚護理市場的市場領導者，在大的重新定位和利用其皮膚護理趨勢的推動下，它的市場份額現在連續五個月增長，而且還利用了在這一領域的巨大成功。好的發言中所解釋的。而且它顯然是由亞馬遜分銷推動的。但我想注意到，與此同時，Ulta 的後繼診所非常非常有力地表明，亞馬遜引入新客戶不僅僅是針對同一個客戶，而是在市場份額上，增加新客戶並允許我們所有的新管道、亞馬遜等合作夥伴或Ulta 等歷史悠久的強大合作夥伴都在同一品牌上取得成功。在我們市場上的許多其他活動中，這種情況也正在發生。因此，我們的重點是繼續加速中國和日本等市場的市場份額成長，並首先重點實現穩定，然後再提高美國的市場份額。世界上還有許多其他市場新興市場或特定市場，當我們回顧過去12 個月時，我們確實提高了市場份額，並且我們將繼續與特雷西和我對上一個問題給出的答案一起加速，即是投資的增加以及這些投資的增加和精準化。我希望您能全面了解我們正在努力做的事情，即使是在中國市場和旅遊細節已經觸底的時刻，您知道，我們正在努力做這件事。我們將重點放在每個市場的市場份額的恢復上。

Our next question comes from Lauren Lieberman from Barclays. Please go ahead with your question.

我們的下一個問題來自巴克萊銀行的勞倫·利伯曼。請繼續你的問題。

Great, thanks. Good morning, everyone. I wanted to talk a bit about the dividend cut both in terms of timing and kind of the the message. So first is in terms of of timing, you know why not clean this up back in August. I know that China worsened during the quarter, but I would argue it's not to the degree that dividends should have come into question.

太好了，謝謝。大家早安。我想從時間和資訊類型方面談談股息削減。首先是時間安排，你知道為什麼不在八月清理這個問題。我知道中國的情況在本季惡化，但我認為這還沒有達到股息應該受到質疑的程度。

And then the second thing is just on the message, you know, the, you know, should we be thinking here about it because of time line, 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. So timing and sort of the message and how we should be thinking through this beyond there just being, you know, quote room for new leadership. Thank you.

然後第二件事就在資訊上，你知道，你知道，我們是否應該在這裡考慮這個問題，因為時間線和獲利復甦的幅度？當我們思考未來幾年時，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，也不存在資產負債表問題，但這是一個相當大的變動。因此，資訊的時機和排序，以及我們應該如何思考這個問題，除了新領導層的報價空間之外。謝謝。

Yeah, now, thanks. Thanks Lauren for the question. Look, reducing our dividend is not an indication at all of what we think about our long term growth opportunities. You know, 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, in August. As we looked at, you know, recognizing the level of uncertainty that, that we are experiencing for the balance of the year which caused us to pull our guidance, We thought it appropriate at this time as well to look at the dividend. When you think about, you know, paying a 66¢ dividend, with, you know, with the earnings, the 14¢ that we had in the quarter. You know, and, and, and obviously what we guided for the second quarter, it was appropriate for us to rightsize the dividend at this time to make sure, obviously, we don't have a liquidity problem to your point. But recognizing the prolonged situation in terms of pressure in our markets, right, sizing the dividend is still a very good dividend yield for investors. But right, sizing it was the appropriate thing to do to protect, you know, the cash that it will be needed, obviously, for additional actions that we may take under the PR GP as well as additional investments we may make to support growth. So really looking at it in totality, totality in terms of total shareholder return. And and and figuring out what's the best way for us to you know, invest back in the business as well as obviously continue to return a nice yield in terms of dividends to our shareholders.

是的，現在，謝謝。感謝勞倫提出的問題。看，減少股利根本不顯示我們對長期成長機會的看法。你知道，考慮到壓力不僅出現在第一季（正如我們所預期的那樣），而且出現在第二季度，這與我們八月份的情況明顯不同。正如我們所看到的，你知道，認識到我們在今年剩餘的時間裡所經歷的不確定性程度，導致我們取消了我們的指導，我們認為現在也應該考慮股息。當您考慮支付 66 美分的股息時，您知道，我們本季的利潤為 14 美分。你知道，而且，顯然，我們對第二季度的指導是，我們此時適當調整股息規模，以確保我們顯然不存在您所說的流動性問題。但認識到我們市場壓力的長期情況，對投資者來說，調整股息規模仍然是一個非常好的股息殖利率。但是，正確的做法是，調整規模是適當的做法，以保護我們在 PR GP 下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，顯然，這將需要現金。因此，要真正從整體上看待它，從股東總回報的角度來看。並且弄清楚對我們來說最好的方式是什麼，你知道，投資回業務，並且顯然繼續為我們的股東帶來可觀的股息回報。

Our next question comes from Bryan Spillane from Bank of America. Please go ahead with your question. Sure.

我們的下一個問題來自美國銀行的 Bryan Spillane。請繼續你的問題。當然。

Thanks operator. Good morning Tracy. Good morning, Fabrizio.

感謝運營商。早上好，特雷西。早安，法布里齊奧。

I, I guess my question is my question is more related to the management change and the qualities and, and skill sets that that both you and Tracy were looking for in terms of replacements. And I asked that in the context of, you know, you both have been around this company as it was, you know, effectively turned around and, and brought it to a very, you know, amazing peak and the landscape has changed a little bit for sure. Maybe that understates it and, and so just, you know, I think people are trying to understand, you know, what comes next and not asking about the people specifically, but just the qualities the the skill sets you were looking for. And I guess how it informs like what you think needs to be different, right? As the company kind of charters through these, these these next few years relative to maybe what what you all brought to the party over the last, you know, 10 plus years.

我，我想我的問題是我的問題更多地與管理層的變化以及你和特雷西在替代者方面尋找的素質和技能有關。我問，在這樣的背景下，你們都一直在這家公司工作，你知道，有效地扭轉了局面，並將其帶到了一個非常、你知道、令人驚嘆的頂峰，而且情況也發生了一些變化。也許這低估了它，所以，你知道，我認為人們正在試圖理解，你知道，接下來會發生什麼，而不是具體詢問人們，而只是詢問你正在尋找的技能組合的品質。我猜它是如何傳達你認為需要不同的東西的，對吧？正如公司透過這些制定的章程一樣，接下來的幾年可能與你們在過去十多年裡為聚會帶來的東西有關。

Yeah, is a first of all the, let me say, first of all, what has to be different in in the business as you know, we have, 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 over exposures to areas of the global world that becoming too volatile and more uncertain. And so is the rebalancing for the certainty of growth just to make an example of this because these acts in many areas, this this concept of balance growth better exposing to the cost to the growth trends of the world is referred to countries but is also referred to channels referred to consumer segments in a very broad way. And obviously, in this moment is referred to the overall Asia travel retail and and and overall China market volatility where we have rebalanced 10 points in only two years already. And this year more rebalance will happen.

是的，首先，讓我說，首先，正如你所知，業務中必須有什麼不同，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，並避免在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。為了成長的確定性而進行的再平衡也是如此，只是為了舉個例子，因為這些行為在許多領域都起作用，這種平衡成長的概念更好地暴露了世界成長趨勢的成本，它被提到了國家，但也被提到了管道以非常廣泛的方式涉及消費者群體。顯然，此時此刻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。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. So all this work, by the way on consumers, obviously the penetration of young consumers to mention one. So all these important strategic rebalancing elements is something that, that we believe we need to continue to do and and we need leadership that has the characteristic that can really look at the business in this way. And so big understanding of the global market dynamics and understanding on the global consumers and continuing the work that we have started focusing the company on the consumers and on the big consumer changes that are happening around the world. Le leadership that will focus on with a good understanding of the global business and being able to leverage global growth where growth happen. And also we, we are a company of brands and it's very important that our leadership team continue to be an outstanding brand builder and being able to, 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. For example, the actions that correspond to this intention are building A C in China research centers in Shanghai or being building factories in Asia that will bring balance to our portfolio in the future. So those are the part of the strategy needs to be continued. And there is then a the need of accelerating the strategies. And there is the need also as talked as part of the PR GP to make the organization faster in reacting to friends, but also faster in making decisions across the globe and aligning on on the changes that are needed to react. So the what we call the increase of speed and the increase of agility, which are just two words behind those two words, there is 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. That's why I'm personally very happy that the board at the end selected internal succession because 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, this ability is stronger in very talented internal leaders that would be external. But again, that's my point of view. 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 support by the solid, the quality obviously of the what the board chose for future leadership, but also by the knowledge of these people about the internal systems and where we are so that we believe we need brand builders. But we need also people that will act with urgency, speed, courage to make the needed changes. I will support this courage, this change in my transition work with the team and we are looking forward to to for the new team to add a fast team. But in what has to change, but also for the new thing to recognize the strength that you mentioned in your question, there was the other strengths, not only the trades and I built in the last many years together in the company, but also the strengths that 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. So this historical strength will be retained, but there will be some fast change in reacting to the new realities. And I personally believe that the the new leadership team will be able to bring the the kind of improvements and acceleration that obviously all of you are expecting from us in, in the next years.

然後，這是指通路的比例，例如全球百貨公司與其他通路相比，目前成長速度更快，正在發生變化，有利於獲勝管道等。所以所有這些工作，順便提一下消費者，顯然年輕消費者的滲透率就不用說了。因此，所有這些重要的策略再平衡要素都是我們認為需要繼續做的事情，而且我們需要具有能夠真正以這種方式看待業務的領導力。對全球市場動態和全球消費者的深入了解並繼續我們的工作，使我們開始將公司的重點放在消費者和世界各地正在發生的巨大消費者變化上。領導層將專注於對全球業務的深入了解，並能夠在成長發生的地方利用全球成長。而且我們，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，並能夠建立品牌資產，以及創新和響應不同目標的品牌品質世界以及品牌適應世界各地不同市場、消費群的能力。我們過去稱之為本地相關性的概念變得更加重要。例如，與此意圖相對應的行動是在上海的中國研究中心建立AC，或在亞洲建立工廠，這將為我們未來的投資組合帶來平衡。因此，這些是策略中需要繼續實施的部分。因此需要加速實施策略。正如 PR GP 所討論的那樣，需要讓組織更快地對朋友做出反應，同時也需要更快地在全球範圍內做出決策，並就反應所需的變化進行調整。因此，我們所說的速度的提高和敏捷性的提高，這只是這兩個詞背後的兩個詞，新領導層打算在組織中帶來很多具體的變化，這些變化已經坦率地致力於實現並且需要有能力做到這一點。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，並且能夠了解需要改變的內容為了提高敏捷性，坦率地說，這種能力在非常有才華的內部領導者身上比外部領導者更強。但這又是我的觀點。那麼如何更好地配置我們的資源來適應世界大變化的趨勢的理解也是新領導層需要具備的特質。這需要董事會為未來領導階層選擇的堅實、高品質的支持，同時也需要這些人對內部系統和我們所處位置的了解，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急、迅速、勇敢地採取行動來做出必要改變的人。我將支持這種勇氣，支持我與團隊的過渡工作中的這種變化，我們期待為新團隊添加一支快速的團隊。但在必須改變的方面，而且為了讓新事物認識到你在問題中提到的優勢，還有其他優勢，不僅是我和過去幾年在公司共同建立的行業，而且還有這家公司一直以來的優勢，這家公司的價值觀，品牌的長期品質和實力，是這家公司遺產的一部分。因此，這種歷史優勢將被保留，但在應對新現實方面將會發生一些快速變化。我個人相信，新的領導團隊將能夠在未來幾年帶來你們所有人對我們的期望的那種改進和加速。

Our next question comes from Rpes Parik from Oppenheimer. Please go ahead with your question.

我們的下一個問題來自奧本海默的 Rpes Parik。請繼續你的問題。

Good morning. And thanks for taking my question. So I just wanted to go to the cash flow statement. So just wanted to get a sense of if there's opportunities to further reduce cap back to better align with the weaker earnings, part of the business currently. And then, you know, I just want to also get your thoughts on the health of inventory as you see it today.

早安.感謝您提出我的問題。所以我只想查看現金流量表。因此，我只是想了解是否有機會進一步降低上限，以更好地適應當前業務的疲軟收益。然後，你知道，我只想了解你對今天庫存健康狀況的看法。

Yeah, so, and, and I'll start with CapEx. We have already reduced CapEx from, you know, from what we had initially expected to invest this year. And and that is certainly one of the areas that we're looking at as it relates to, to cash along with, obviously, improvements in working capital, we made some big improvements last year as it relates to inventory. So our inventories are in pretty good shape, 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, you know, to sales declines in our markets. And and keeping the obsolescence, you know, and discounting under, under tighter control. So we've gotten much more agility in our in our planning processes and, and the connection with with certainly our our supply chain to, to make sure that we're making the right taking the right decisions as it relates to production as well as you know, the overall management of, of the network.

是的，所以，我將從資本來源開始。你知道，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，因為它涉及現金，顯然，還有營運資金的改善，我們去年在庫存方面取得了一些重大改進。因此，我們的庫存狀況相當不錯，但顯然考慮到銷量的進一步下降，這是我們非常關注的事情，以確保我們能夠更快地對市場的銷量下降做出反應。並且保持過時，你知道，並在更嚴格的控制下打折。因此，我們的規劃流程和與供應鏈的連結變得更加敏捷，以確保我們在與生產和供應相關的方面做出正確的決策。

Our next question comes from Bonnie Herzog from Goldman Sachs. Please go ahead with your question.

我們的下一個問題來自高盛的邦妮·赫爾佐格。請繼續你的問題。

All right. Thank you. Good morning, everyone. I am. I actually wanted to circle back to Asia Travel retail with a question. You mentioned the lower replenishment, replenishment order. So could you give us a sense of maybe where retail inventory levels are currently, you know, maybe versus a year ago and how much further de stocking you expect? I guess ultimately, you know, how do you expect sell in, sell out trends to evolve throughout the balance of the year? Thank you.

好的。謝謝。大家早安。我是。我實際上想帶著一個問題回到亞洲旅遊零售。你提到了下補貨、補貨訂單。那麼，您能否讓我們了解一下目前的零售庫存水平，您知道，可能與一年前相比，以及您預計會進一步去庫存多少？我想最終，你知道，你預計今年剩下的時間賣出和賣出的趨勢會如何演變？謝謝。

Yes, we definitely have lower levels of inventory in the trade relative to last year and even last quarter. So we have made progress, you know, as I said in the prepared remarks, as it relates to bringing down the inventory and trade in Asia travel retail because of the deceleration of the market. We didn't make as much progress as as we had expected. So it is taking a little bit longer. But, you know, 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 in what we've reflected in our Q2 guidance. Some more progress in terms of inventory in in, in the trade right now, it's really a function of the market volatility. You know, some of the trade that had built up or the inventory that had built up during the pandemic years, we have, we have managed that down. 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 the significant actions that we took, particularly in the first half of the year to, to bring our inventory levels down.

是的，與去年甚至上季相比，我們的貿易庫存水準肯定較低。因此，正如我在準備好的發言中所說，我們已經取得了進展，因為這與由於市場減速而降低亞洲旅遊零售的庫存和貿易有關。我們沒有取得預期的進步。所以需要更長的時間。但是，你知道，我們不會再給下半年的指導。但我們確實預計，即使在第二季度，我們也能夠假設我們在第二季度指導中反映的內容不會發生更大的變化。目前，在貿易中的庫存方面取得了更多進展，這實際上是市場波動的函數。你知道，在大流行期間建立的一些貿易或庫存，我們已經控制住了。現在，當前的市場波動影響了我們貿易中的庫存水準。但鑑於我們採取了重大行動，特別是在今年上半年，以降低我們的庫存水平，我們的處境比一年前要健康得多。

And, and to give it the dimensional just to add, what Tracey is saying is we actually have the lowest level in the, in the last several years, but the market is lower than it was in the, in the previous year. So the we we should need to continue doing some work, but definitely there's been extraordinary progress and I would like everyone to, you know, that the team is very focused in this progress and also our our vision of course, to reflect the need to continue this and no, never let pass more than a few months when we decided to reflect the market trend also in the level of inventories.

而且，為了補充一點，特雷西所說的是，我們實際上處於過去幾年中的最低水平，但市場低於前一年。因此，我們應該繼續做一些工作，但肯定已經取得了非凡的進展，我希望每個人都非常關注這一進展，當然還有我們的願景，以反映需要繼續這樣做，不，永遠不要讓我們決定在庫存水準上反映市場趨勢的時間超過幾個月。

Okay, thank you.

好的，謝謝。

And our next question comes from Olivia kong from Raymond James. Please go ahead with your question.

我們的下一個問題來自 Raymond James 的 Olivia kong。請繼續你的問題。

Great. Thank you. 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 PR GP, effectively just helping us bridge from sales to EPS is it looks like a much bigger sequential dollar increase than in years past and up pretty considerably on a year over year basis as well. So, you know, essentially what's driving costs up so much in Q2 to help us assess what that, you know, pressure looks like in the second half of the year when you, when you're not giving us, additional color. Thank you.

偉大的。謝謝。我想更多地了解第二季度的前景。利潤比銷售額更重要，你是否可以談論去槓桿化方面的嵌入內容與維持投資相比，作為PR GP 的一部分，在實現節省方面可能更困難，有效地幫助我們從銷售到每股收益的橋樑，它看起來像是一個非常重要的因素。所以，你知道，本質上是什麼導致第二季度成本上漲如此之多，以幫助我們評估下半年的壓力，當你不給我們額外的顏色時。謝謝。

Okay, so I'll, I'll, I'll give it a shot. Olivia. So I would start with gross margin. We expect that gross margin will continue to improve in the second quarter. You know, as I said, in the prepared remarks, not as much, year over year as in the first quarter, but from first quarter to second quarter, we will expect, you know, we do expect even on declining sales a further improvement in, in gross margin. You know, on a 6 to 8% decline in sales. And you know, that being in China and travel, retail and travel retail in particular, that does put pressure on our expense base. You know, we have talked in the past about both China and travel retail, being profit, you know, quite profitable areas for, for us, given the productivity per door in that region. And so, you know, 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. And so, you know, it's a big quarter for us, obviously, with holiday, we do have some new innovative advertising that we are doing behind some of our some of our you know, faster growth areas in order to make sure that we do set up, you know, the business to have the best holiday possible in light of the declining sales and 1,111 as well as obviously going forward into the second half of the year. 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 of brick and mortar distribution in order to to execute the sales. And then, you know, the the other area that we've protected strategically this year and continue to do so, obviously, you know, rationalizing that as we see performance come through is store investments. And so, you know, we have brands like Lala and Jo Jo Malone, you know, who are, you know, 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. And so those are the areas predominantly that we are protecting from an investment standpoint as it relates to the PR GP, you know what we had said previously. And again, I'll, I'll reiterate it is we expected the first half of this year and really much of this year to see PR GP 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. And so the cadence of when to actually see some of those expenses reflected obviously being offset with, with some of the sales declines in the first half of the year would be in the second half of the year. But again, you know, be mindful that, you know, the, you know, when you have you know, mid single digit declines in your business, it does create a deleverage on the rest of the business that, that, you know, is the PR GP is helping but, but it's still deleveraging.

好吧，所以我會，我會，我會嘗試一下。奧利維亞。所以我將從毛利率開始。我們預計第二季毛利率將繼續改善。正如我所說，在準備好的演講中，同比情況不如第一季那麼多，但從第一季到第二季度，我們預計，即使在銷售額下降的情況下，我們也確實預計銷量會進一步改善中，毛利率。你知道，銷售額下降了 6% 到 8%。你知道，在中國，尤其是旅遊、零售和旅遊零售，這確實給我們的支出基礎帶來了壓力。你知道，我們過去曾討論過中國和旅遊零售業，考慮到該地區每門的生產力，對我們來說，這是一個利潤豐厚的領域。所以，你知道，這給我們的開支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。所以，你知道，這對我們來說是一個重要的季度，顯然，在假期期間，我們確實有一些新的創新廣告，我們正在一些你知道的、增長更快的領域背後做一些新的創新廣告，以確保我們做到這一點鑑於銷售額和 1,111 的下降以及顯然會持續到今年下半年，您要準備好盡可能享受最好的假期。因此，廣告也是持續降低銷售槓桿率的領域之一。確保我們的實體分銷管道擁有合適的員工來執行銷售。然後，你知道，我們今年策略性保護並繼續這樣做的另一個領域，顯然，你知道，合理化我們看到的業績表現是商店投資。所以，你知道，我們有像 Lala 和 Jo Jo Malone 這樣的品牌，你知道，除了其他分銷管道之外，他們是獨立的商店品牌，但做得很好並且正在增長，我們正在投資他們的商店基地以及。因此，這些是我們從投資角度主要保護的領域，因為它與 PR GP 相關，你知道我們之前說過的。我會再次重申，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 PR GP 的收益，我們顯然已經看到了這一點，並且從下半年開始會帶來更多收益今年上半年，因為這與我們根據該計劃進行的一些重組活動有關。因此，何時真正看到其中一些費用反映出來的節奏顯然被抵消了，上半年的一些銷售下降將出現在下半年。但同樣，你知道，請注意，你知道，你知道，當你知道，你的業務出現中個位數下降時，它確實會對其他業務造成去槓桿化，你知道， PR GP 正在提供幫助，但仍在去槓桿化。

And and the only things I want to add again for perspective to what Tracy explained is the the fact that there is a mix factor because where the markets are declining, the majority of the change we are proposing is as we explain China market and travel retail Asia market. These are two markets where we have big market shares and with big market share can scale and with scale and profitability. So those are important profitable markets with us where the decline is happening And this important decline of markets where we have scale market share and profitability obviously is more painful in terms of mixing, but 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.

為了理解特雷西所解釋的觀點，我唯一想再次補充的是，存在一個混合因素，因為在市場下滑的地方，我們提出的大部分改變是在我們解釋中國市場和旅遊零售時提出的。市場。在這兩個市場中，我們擁有較大的市場份額，並且擁有較大的市場份額可以擴大規模，並具有規模和盈利能力。因此，那些對我們來說是重要的盈利市場，正在發生下降，而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，顯然在混合方面更加痛苦，但從單個季度到第二個季度來看，如果下降是世界各地的平均水平在這種情況下並不是非常關注這兩個問題。

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. We do. Thank you for attending today's presentation. You may now disconnect your lines.

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。我們做到了。感謝您參加今天的演講。現在您可以斷開線路。