雅詩蘭黛 (EL) 2022 Q4 法說會逐字稿

Good day, everyone, and welcome to the Estée Lauder Company's Fiscal 2022 Fourth Quarter and Full Year Conference Call. Today's call is being recorded and webcast.

大家好，歡迎參加雅詩蘭黛公司 2022 財年第四季度和全年電話會議。今天的電話正在錄音和網絡直播。

For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini.

關於開場白和介紹，我想將電話轉給投資者關係高級副總裁 Rainey Mancini 女士。

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

你好。今天的電話會議是總裁兼首席執行官 Fabrizio Freda；以及執行副總裁兼首席財務官 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，請讓我向您推薦我們的新聞稿和我們提交給 SEC 的報告，您會發現可能導致實際結果與這些前瞻性陳述存在重大差異的因素。

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. Unless otherwise stated, all net sales growth numbers are in constant currency, and all organic net sales growth excludes the noncomparable impacts of acquisitions, divestitures, brand closures and the impact of currency translation.

為了便於討論我們的基礎業務，對我們的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。除非另有說明，否則所有淨銷售額增長數字均以不變貨幣計算，所有有機淨銷售額增長均不包括收購、資產剝離、品牌關閉的不可比影響以及貨幣換算的影響。

You can find reconciliations between GAAP and non-GAAP 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.com sites and third-party platforms. It also includes estimated sales of our products through our retailers' websites. (Operator Instructions)

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 措施之間的對賬。提醒一下，對在線銷售的提及包括我們通過我們的 brand.com 網站和第三方平台直接向我們的消費者進行的銷售。它還包括我們的產品通過我們的零售商網站的估計銷售額。 （操作員說明）

And now I'll turn the call over to Fabrizio.

現在我將把電話轉給 Fabrizio。

Thank you, Rainey, and hello to everyone. I'm grateful to be with you today to reflect on our record results for fiscal year 2022 and discuss the drivers of our outlook for fiscal year 2023.

謝謝你，雷尼，大家好。我很高興今天能與您一起回顧我們 2022 財年的創紀錄業績，並討論我們對 2023 財年展望的驅動因素。

We leveraged our strengths amid the prolonged pandemic, the invasion of Ukraine and the onset of higher inflation. Our multiple NGO growth strategy, flexible financial model and exceptional talent enabled us to deliver record performance. At the same time, we invested for long-term growth, reflecting our confidence in the vibrancy of prestige beauty now and in the future.

在長期的大流行、烏克蘭入侵和通脹上升的情況下，我們利用了我們的優勢。我們的多 NGO 增長戰略、靈活的財務模式和傑出的人才使我們能夠創造出創紀錄的業績。同時，我們為長期增長而投資，體現了我們對現在和未來充滿活力的尊貴美妝的信心。

We achieved better-than-expected results in our fourth quarter, leading to above guidance organic sales growth of 8% for fiscal year 2022. Reported sales rose 9% despite heightened foreign exchange pressure to end the year. Adjusted operating margin expanded 80 basis points to an all-time high of 19.7%. We realized this greater profitability even as our growth engines diversified beyond our highest margin categories.

我們在第四季度取得了好於預期的業績，導致 2022 財年有機銷售額增長 8%，高於預期。儘管年底外匯壓力加大，但報告的銷售額增長了 9%。調整後的營業利潤率擴大了 80 個基點，達到 19.7% 的歷史新高。即使我們的增長引擎多樣化，超出了我們的最高利潤率類別，我們也意識到了這種更大的盈利能力。

Fragrance, makeup and hair care delivered double-digit sales growth on a reported basis to complement our robust skin care business. Impressively, 9 brands contributed double-digit organic sales growth for the year despite the significant pressure from COVID-19 in Asia Pacific in the fourth quarter. La Mer, Jo Malone London and Le Labo showcased the strength of our portfolio across our large, scaling and developing brands, respectively. M·A·C, Estée Lauder and Clinique powered makeup emerging renaissance, with double-digit gains in the category as Jo Malone London and Tom Ford Beauty elevated fragrance to new heights with striking growth.

據報導，香水、化妝品和護髮產品實現了兩位數的銷售額增長，以補充我們強勁的護膚業務。令人印象深刻的是，儘管第四季度亞太地區受到 COVID-19 的巨大壓力，但仍有 9 個品牌在今年實現了兩位數的有機銷售額增長。 La Mer、Jo Malone London 和 Le Labo 分別展示了我們在大型、規模化和發展中品牌的產品組合實力。 M·A·C、雅詩蘭黛和倩碧推動了新興彩妝行業的複興，隨著 Jo Malone London 和 Tom Ford Beauty 以驚人的增長將香水提升到新的高度，該品類實現了兩位數的增長。

Our geographic diversity has been a distinct benefit during the pandemic, allowing us to create and capture growth where opportunities presented themselves around the world. Asia Pacific led growth in fiscal '20 and '21 as markets in the West were more negatively impacted by COVID-19, while the Americas and EMEA drove growth in 2022 as the East confronted renewed pressure from the virus.

在大流行期間，我們的地理多樣性一直是一個明顯的好處，使我們能夠在世界各地出現機會的地方創造和捕捉增長。亞太地區在 20 財年和 21 財年引領增長，因為西方市場受到 COVID-19 的負面影響更大，而美洲和 EMEA 推動了 2022 年的增長，因為東方面臨來自病毒的新壓力。

Today, our $17.7 billion in annual reported revenues tops prepandemic levels by 19% fueled by organic sales growth and enhanced by our acquisitions of Dr. Jart and DECIEM. Adjusted operating margin expanded 220 basis points over the 3 years. Our trusted brands with the hero products and sought-after innovation have thrived, while our increasingly flexible cost structure has served us well.

今天，我們 177 億美元的年度報告收入比大流行前水平高出 19%，這得益於有機銷售增長以及我們對 Jart 博士和 DECIEM 的收購。調整後的營業利潤率在三年內擴大了 220 個基點。我們值得信賴的品牌憑藉主打產品和廣受歡迎的創新蓬勃發展，而我們日益靈活的成本結構也為我們提供了良好的服務。

Our focus on hero product had been a winning strategy. This high repeat loyalty-inducing products have grown significantly as a mix of our business since fiscal year 2019. Throughout, we have continued to innovate to propel our hero strategy for the years ahead. Innovation served as a powerful catalyst for growth this year, representing over 25% of sales once again.

我們專注於英雄產品是一個成功的策略。自 2019 財年以來，這種高重複忠誠度產品在我們的業務組合中顯著增長。自始至終，我們一直在不斷創新，以推動我們未來幾年的英雄戰略。創新成為今年增長的強大催化劑，再次佔銷售額的 25% 以上。

Our [newness] exceeded consumer desires due to our exceptional data analytics, R&D and creative capabilities. La Mer's Hydrating Infused Emulsion, Estée Lauder Re-Nutriv diamond serum and MACStack mascara are among our breakthrough launches this year, driving favorable earned media value and strong new consumer acquisition.

由於我們卓越的數據分析、研發和創新能力，我們的 [新穎性] 超出了消費者的需求。 La Mer 的 Hydrating Infused Emulsion、Estée Lauder Re-Nutriv 鑽石精華和 MACStack 睫毛膏是我們今年的突破性產品之一，推動了良好的媒體價值和強勁的新消費者收購。

Turning to category performance. Fragrance grew a stunning 32% organically for the year. Jo Malone London, Tom Ford Beauty, Le Labo, KILIAN PARIS and Editions de Parfums Frédéric Malle each rose strong double digits and expanded in every region, including excellent results in travel retail in EMEA. Estée Lauder brand launched the luxury collection, and AERIN contributed double-digit gains. The outstanding performance of our luxury and artisanal portfolio affirms our strategic pivot to this accretive segment of the category.

轉向類別性能。今年，香水有機增長了驚人的 32%。 Jo Malone London、Tom Ford Beauty、Le Labo、KILIAN PARIS 和 Editions de Parfums Frédéric Malle 均實現了兩位數的強勁增長，並在各個地區實現了擴張，其中包括在歐洲、中東和非洲地區旅遊零售方面的出色表現。雅詩蘭黛品牌推出奢侈品系列，AERIN貢獻了兩位數的收益。我們的奢侈品和手工產品組合的出色表現證實了我們對這一類別增值部分的戰略重點。

Consumers' behaviors during the [market] pandemic reinforced fragrance as part of self-care and solidified online as the destination for the category to explore, learn and purchase. Our brands stepped up to create and leverage these new dynamics. We capitalized on the recovery in brick-and-mortar in many markets, realizing high levels of engagement in freestanding stores, while online continue to prosper for the category.

[市場] 大流行期間的消費者行為強化了香水作為自我保健的一部分，並鞏固了在線作為該品類探索、學習和購買的目的地。我們的品牌加緊創造和利用這些新動力。我們利用許多市場實體店的複蘇，實現了獨立商店的高參與度，同時在線繼續為該類別繁榮。

Makeup remitted a powerful growth engine in fiscal year 2022. Strong double-digit organic sales gains in the Americas and EMEA more than offset a double-digit decline in Asia Pacific. As markets in the West reopened, leading to more social and professional use educations, the makeup renaissance emerge.

化妝品在 2022 財年釋放了強大的增長引擎。美洲和歐洲、中東和非洲地區強勁的兩位數有機銷售增長抵消了亞太地區兩位數的下降。隨著西方市場的重新開放，導致更多的社會和專業使用教育，化妝品復興出現了。

Our brand excelled, with innovative artists as well as new products, which focused on performance, ingredient narratives and skinifications of makeup. We leveraged increased traffic in brick-and-mortar, which allowed us to reestablish our well-loved services in store to realize terrific growth in services.

我們的品牌表現出色，擁有創新的藝術家和新產品，專注於性能、成分敘述和化妝的皮膚化。我們利用實體店流量的增加，這使我們能夠在店內重新建立我們深受喜愛的服務，以實現服務的驚人增長。

Hair care proved to be a valuable growth engine, contributing double-digit organic sales growth. The unique value proposition and go-to-market strategy for each of Aveda and Bumble and bumble resonated with consumers who increasingly expect the benefits of quality products and performance-based ingredients.

頭髮護理被證明是一個有價值的增長引擎，貢獻了兩位數的有機銷售增長。 Aveda 和 Bumble 和 Bumble 各自的獨特價值主張和進入市場戰略引起了消費者的共鳴，他們越來越期待優質產品和基於性能的成分的好處。

The skin care category was the most impacted from the resurgence of COVID-19 in Asia Pacific in the second half of the fiscal year as the restriction reduced traffic in brick-and-mortar as well as travel retail and also temporarily curtailed our distribution capacity in Mainland China. In this context, we delivered solid results as excellent performance from La Mer, Clinique, Bobbi Brown offset pressure from other brands.

護膚品類別在本財年下半年受亞太地區 COVID-19 復甦的影響最大，因為限制減少了實體店和旅遊零售的客流量，並暫時減少了我們在亞太地區的分銷能力中國大陸。在此背景下，由於 La Mer、Clinique、Bobbi Brown 的出色表現抵消了其他品牌的壓力，我們取得了可觀的業績。

La Mer had a remarkable year. Consumers around the world gravitated to its [iconic and robust] innovations, embracing newness like The Hydrating Infused Emulsion and the upgrade to The Treatment Lotion to expand their regimens. Genaissance de la Mer lifted sales further as consumers traded up to the brand ultra-luxury franchise for its artisanal quality, unparalleled efficacy and high-curated experiences.

La Mer 度過了非凡的一年。世界各地的消費者都被其 [標誌性和強大的] 創新所吸引，接受瞭如 The Hydrating Infused Emulsion 和升級到 The Treatment Lotion 以擴展他們的治療方案等新事物。 Genaissance de la Mer 進一步提升了銷售額，因為消費者因其手工品質、無與倫比的功效和精心策劃的體驗而轉向該品牌的超豪華特許經營權。

Clinique and Bobbi Brown's success in skin care demonstrated the execution of our sophisticated hero strategy to drive strong repeat and consumer loyalty. Clinique heroes across categories from makeup remover to serum to moisturizer provided it with a winning formula, while Bobbi Brown's global and regional hero philosophy is driving its mix of business in skin care much higher.

Clinique 和 Bobbi Brown 在護膚方面的成功證明了我們執行成熟的英雄戰略以推動強大的重複和消費者忠誠度。從卸妝液到精華液再到保濕霜等類別的倩碧英雄為其提供了一個成功的配方，而 Bobbi Brown 的全球和區域英雄理念正在推動其護膚業務的組合更高。

Looking now at channels. Both brick-and-mortar and online served as growth engines for the year as we pushed exciting initiatives to amplify our omnichannel capability. Let me share a few of the highlights. Brick-and-mortar rebounded strongly in the America and EMEA as specialty multi, freestanding stores and department store all contributed. Our Post-COVID Business Acceleration program enabled us to improve the productivity and sustainability of our brand building, experiential brick-and-mortar footprint as intended.

現在看頻道。隨著我們推出令人興奮的舉措以增強我們的全渠道能力，實體店和在線商店都成為了這一年的增長引擎。讓我分享一些亮點。實體店在美國和歐洲、中東和非洲地區強勁反彈，因為專賣店、獨立商店和百貨商店都做出了貢獻。我們的後 COVID 業務加速計劃使我們能夠提高我們的品牌建設的生產力和可持續性，如預期的那樣體驗實體足跡。

Online grew mid-single digits organically led by double-digit growth in Asia Pacific. This in high online penetration boosted reported sales growth in the channel to double digits. Our online channel encompassing brand.com, third-party platforms, pure-play retailers and retail.com is now far more than twice as big prepandemic fiscal '19. China and the U.S., which already high online penetration, have expanded further, while markets in EMEA have seen a surge in online penetration that are now able to realize the benefits of scale.

在亞太地區兩位數增長的帶動下，在線業務實現了中個位數的有機增長。這種高在線滲透率將報告的渠道銷售增長提升至兩位數。我們的在線渠道包括brand.com、第三方平台、純零售商和retail.com，現在遠遠超過19 財年大流行前的兩倍。在線滲透率已經很高的中國和美國進一步擴大，而歐洲、中東和非洲市場的在線滲透率激增，現在能夠實現規模效益。

During the year, we diversified in high-growth channels globally to expand our consumer reach. Estée Lauder, Clinique and Origins initially launched on JD in China, and given the insight gain as well as new consumer acquisition trends, we introduced more brands on JD. Jo Malone London and La Mer launched on Lazada in Southeast Asia, and many brands participated in the emerging Ulta Beauty at Target and Sephora and Kohl's partnership in the U.S., both in store and online.

年內，我們在全球的高增長渠道多元化，以擴大我們的消費者範圍。雅詩蘭黛、倩碧和起源最初在京東上架，鑑於洞察力和新的消費者獲取趨勢，我們在京東上引入了更多品牌。 Jo Malone London 和 La Mer 在東南亞的 Lazada 上推出，許多品牌都參與了 Target 和 Sephora 和 Kohl 在美國的新興 Ulta Beauty 的實體店和在線合作。

We continue to innovate across the online ecosystem to generate trial and repeat. In Latin America, which has historically been a strong market for direct selling, we leverage WhatsApp and drove social selling to represent 30% of online sales in the region. Around the world, our beauty advisers and makeup artists became content creators for always-on creation across social media platforms like TikTok. This showcases the powerful evolution of the reach and scale of our expert advice, which now stands well beyond brick-and-mortar.

我們繼續在整個在線生態系統中進行創新，以產生試驗和重複。在歷來是直銷市場強勁的拉丁美洲，我們利用 WhatsApp 推動社交銷售佔該地區在線銷售的 30%。在世界各地，我們的美容顧問和化妝師成為內容創作者，在 TikTok 等社交媒體平台上進行不間斷創作。這展示了我們專家建議的範圍和規模的強大演變，現在遠遠超出了實體。

We also advanced our omnichannel strategy meaningfully this year. In North America, most of our freestanding stores are now equipped with fulfillment capability. We also began to stand up these features in EMEA and Asia Pacific. These new capabilities are driving higher average order values and convincing upsell trends.

今年，我們還有意義地推進了全渠道戰略。在北美，我們的大多數獨立商店現在都配備了履行能力。我們也開始在 EMEA 和亞太地區推廣這些功能。這些新功能正在推動更高的平均訂單價值和令人信服的追加銷售趨勢。

At the same time, we extended the reach of our loyalty programs globally, introducing programs in Japan, Italy and Mexico, and expanding offering in other markets across EMEA and Asia Pacific. Here, too, the results are compelling. We are realizing greater purchase frequency, higher level of retention from consumer engaged in loyalty programs.

與此同時，我們將忠誠度計劃的覆蓋範圍擴大到全球，在日本、意大利和墨西哥推出計劃，並在歐洲、中東和非洲和亞太地區的其他市場擴大產品範圍。在這裡，結果也令人信服。我們正在意識到參與忠誠度計劃的消費者的購買頻率更高、留存率更高。

During the fiscal year, we also progressed our ESG goals and commitments. We continue to make strides on our climate action strategy, including the expansion of our renewable energy portfolio across our direct operations globally, and we're recognized by a leading NGO for our commitment to source 100% renewable electricity. In packaging, we set a more ambitious goal to increase the post-consumer recycled content of our packaging to 25% or more by the end of 2025 and set a new goal to reduce the amount of virgin petroleum packaging to 50% or less by the end of 2030.

在本財年，我們還推進了 ESG 目標和承諾。我們繼續在氣候行動戰略上取得長足進步，包括在全球直接運營中擴展我們的可再生能源產品組合，我們因承諾 100% 可再生電力而獲得領先非政府組織的認可。在包裝方面，我們設定了一個更加雄心勃勃的目標，即到 2025 年底將我們包裝的消費後回收含量提高到 25% 或更多，並設定一個新的目標，即到2030 年底。

We expanded employee resource groups, a great source of community and unity. Our network of Black leaders and executives launched in Brazil while wELCome, our group of LGBTQIA+ employees, launched in EMEA. We created a group for our ageless employees and continue to scale our reverse mentoring program globally, pairing more junior talent with senior leaders to share insights and perspectives on trends to drive better business decisions and foster career development.

我們擴大了員工資源組，這是社區和團結的重要來源。我們的黑人領袖和高管網絡在巴西推出，而我們的 LGBTQIA+ 員工團隊 weLCome 在歐洲、中東和非洲地區推出。我們為不老員工創建了一個小組，並繼續在全球範圍內擴展我們的反向指導計劃，將更多初級人才與高級領導者配對，分享對趨勢的見解和觀點，以推動更好的業務決策和促進職業發展。

We brought our unique signature women leadership program, Open Doors, to our international markets, with continued great success in promoting our next generation of women leaders. We realized important progress with the From Every Chair leadership development program. Its inaugural class has already achieved high level of career mobility in the forms of promotions and new roles for Black employees. We are encouraged by these initial results and look forward to continued success from this sponsorship program, which we created for equitable advancement and professional development of our Black talent.

我們將獨特的標誌性女性領導力計劃 Open Doors 帶到了我們的國際市場，並在培養下一代女性領導者方面繼續取得巨大成功。我們在 From Every Chair 領導力發展計劃中取得了重要進展。它的首屆課程已經以晉升和黑人員工新角色的形式實現了高度的職業流動性。我們對這些初步結果感到鼓舞，並期待這項贊助計劃繼續取得成功，我們為黑人人才的公平進步和專業發展而創建。

Before I talk about the year ahead, let me conclude on fiscal year 2022 by speaking about DECIEM, which complemented our organic sales growth. The Ordinary, DECIEM's ingredient-based brand, diversified in exciting ways over the last few months. The brand launched in India and Malaysia, expanded its hair care offering, and also introduced Multi-Peptide Lash and Brow Serum to extend its authorities in treatment. From each innovation exceeding expectation to outstanding initial results in Nykaa in India, The Ordinary enters fiscal year 2023 with promising opportunities.

在談論未來一年之前，讓我先談談 DECIEM，以補充我們的有機銷售增長，以結束 2022 財年。 The Ordinary 是 DECIEM 的基於成分的品牌，在過去幾個月中以令人興奮的方式實現多元化。該品牌在印度和馬來西亞推出，擴大了其護髮產品，還推出了 Multi-Peptide Lash and Brow Serum 以擴大其治療權限。從每項超出預期的創新到印度 Nykaa 的出色初步成果，The Ordinary 進入 2023 財年都充滿了機遇。

Now for the future. We refreshed our 10-year compass to help steer our ambitions and investment for the next decade. The compass reinforced our confidence showcasing the abundant growth opportunities ahead. The drivers are many, led by growing middle class globally and most especially in emerging markets; expanding usage across consumer segments, including ageless and men; and online expansion, fostering consumer access and reach.

現在是為了未來。我們更新了我們的 10 年指南，以幫助引導我們在未來十年的雄心和投資。指南針增強了我們展示未來豐富增長機會的信心。驅動因素很多，主要是全球中產階級不斷壯大，尤其是新興市場；擴大消費群體的使用範圍，包括老年人和男性；和在線擴展，促進消費者訪問和覆蓋。

From the compass, we distilled our 3-year strategy. As we look across the next 3 years, we expect to deliver more balanced growth across categories and regions. Near term, the pandemic and macro factors will likely lead to more valuable growth by category and regions.

從指南針中，我們提煉了我們的 3 年戰略。展望未來 3 年，我們預計將在各個類別和地區實現更加平衡的增長。近期，大流行和宏觀因素可能會導致按類別和地區劃分的更有價值的增長。

We are very confident in the strength of our company and in the vibrancy of prestige beauty. For fiscal year 2023, we expect to deliver strong organic sales growth fueled by our diversified growth engines and enticing innovation, and to take the opportunity in a volatile year to continue investing for our exciting future to build global share.

我們對我們公司的實力和聲望美的活力充滿信心。對於 2023 財年，我們預計在多元化增長引擎和誘人創新的推動下實現強勁的有機銷售增長，並在動蕩的一年中抓住機遇，繼續投資於我們令人興奮的未來，以建立全球份額。

While the external challenges are many, including inflation, geopolitical uncertainty and currency headwinds, the enduring desirability of our brands with the hero products and high repeat rates is powerful. Additionally, our more effective cost structure, pricing power and strong cash generation should afford us the flexibility to successfully navigate the ongoing complex environment.

雖然外部挑戰很多，包括通貨膨脹、地緣政治不確定性和貨幣逆風，但我們的品牌對主打產品和高重複率的持久需求是強大的。此外，我們更有效的成本結構、定價能力和強大的現金生成能力應為我們提供成功駕馭當前複雜環境的靈活性。

Innovation is poised to be a catalyst for growth, and we began the year with exciting news. Let me share insights about 2 skin care launches. Estée Lauder upgraded Advanced Night Repair Eye Supercharged Gel-Creme addresses the signs of eye agings and reflects consumer modern lifestyles of long screen times and environmental stressors. Offering notable incremental benefits from the original product, this launch demonstrates the pricing power of innovation.

創新有望成為增長的催化劑，我們以令人振奮的消息開始了這一年。讓我分享關於 2 次護膚品發布的見解。雅詩蘭黛升級版 Advanced Night Repair Eye Supercharged Gel-Creme 可解決眼部老化跡象，並反映消費者對長屏幕時間和環境壓力的現代生活方式。此次發布從原始產品中提供了顯著的增量收益，展示了創新的定價能力。

Clinique Smart Clinical Repair line extended its fiscal 2022 innovation [strength] with the launch of Smart Clinical Repair Wrinkle Correcting Cream. The moisturizer is coupled with the powerful new claims for Smart Clinical Repair Serum to drive gains in this hero franchise.

Clinique Smart Clinical Repair 系列通過推出 Smart Clinical Repair Wrinkle Correcting Cream 擴展了其 2022 財年的創新[實力]。這款保濕霜與 Smart Clinical Repair Serum 的強大新主張相結合，可推動這個英雄系列的收益。

This year, we expect to reignite growth engines in Asia Pacific as the pressure of COVID-19 abates. We anticipate in-store traffic levels to gradually improve in Mainland China, allowing brick-and-mortar to return to growth to complement ongoing strength online and for tourism trends to Hainan to ultimately accelerate from the most recent post, which began last week.

今年，隨著 COVID-19 的壓力減弱，我們預計將重新點燃亞太地區的增長引擎。我們預計中國大陸的店內客流量水平將逐步提高，實體店將恢復增長，以補充在線上的持續實力，並且海南的旅遊趨勢最終會從上週開始的最新消息中加速。

We are confident in the long-term growth opportunity in Mainland China, evidenced by our expansion into almost 100 new doors and 3 additional cities in fiscal year 2022 as well as our introduction of Aveda last month. We are thrilled to enter the hair care category with Aveda, which is vegan and Leaping Bunny-approved, as the brand launched on Tmall and opened its first freestanding store in the market.

我們對中國大陸的長期增長機會充滿信心，我們在 2022 財年擴展到近 100 個新門店和另外 3 個城市，以及我們上個月推出的 Aveda。我們很高興與 Aveda 一起進入護髮品類，這是素食主義者和 Leaping Bunny 認可的品牌，該品牌在天貓上推出並在市場上開設了第一家獨立商店。

Fiscal 2023 is set to be a monumental year for us as of our Shanghai innovation lab opens, advancing our ambition to best create for the Chinese consumers, and we begin limited production in our new manufacturing facility near Tokyo, which is our first ever in Asia Pacific. With these 2 strategic initiatives, we expect to benefit over the next few years from increased speed-to-market and by further expanding our momentum with outstanding locally relevant innovation in this vibrant region.

2023 財年對我們來說將是具有里程碑意義的一年，因為我們的上海創新實驗室開業，推動了我們為中國消費者創造最佳產品的雄心，我們在東京附近的新製造工廠開始有限生產，這是我們在亞洲的第一個工廠太平洋。通過這兩項戰略舉措，我們預計未來幾年將受益於加快上市速度，並通過在這個充滿活力的地區以出色的本地相關創新進一步擴大我們的勢頭。

For the Americas and EMEA, we anticipate ongoing strength from our growth engines across categories and channels as well as across developed and emerging markets given the broad-based gains of fiscal year 2022. For makeup, which is a vital category in both regions, the emergence of the makeup renaissance give us great confidence going into fiscal year 2023. In North America in particular, our focus turns to granular consumer growth opportunity as we have refined our distribution.

對於美洲和歐洲、中東和非洲地區，鑑於 2022 財年的廣泛收益，我們預計我們跨類別和渠道以及發達和新興市場的增長引擎將持續增長。對於這兩個地區的重要類別化妝品，化妝品復興的出現讓我們對進入 2023 財年充滿信心。特別是在北美，隨著我們優化分銷，我們的重點轉向細化的消費者增長機會。

To close, we delivered excellent performance in fiscal year 2022, achieving record results while advancing initiatives for consumer acquisition, engagement and high-touch services and experiences to drive trial and repeat levels even higher. Today, our business is not only far bigger and more profitable than the prepandemic fiscal year 2019, but our growth drivers are more diversified, our R&D and innovation capabilities are more robust, and our cost structure is more flexible.

最後，我們在 2022 財年取得了出色的業績，取得了創紀錄的業績，同時推進了消費者獲取、參與和高接觸服務和體驗的舉措，以推動更高的試用和重複水平。今天，我們的業務不僅比疫情前的 2019 財年更大、更盈利，而且我們的增長動力更加多元化，我們的研發和創新能力更加強大，我們的成本結構更加靈活。

While the year ahead most certainly has its external challenges, our company is poised for a bright future as the best diversified pure player in prestige beauty with the most talented and passionate employees to whom I extend my deepest gratitude.

雖然未來一年肯定會面臨外部挑戰，但我們公司已準備好迎接光明的未來，成為聲望美容領域最多元化的純粹參與者，擁有最有才華和最熱情的員工，我向他們表示最深切的感謝。

I will now turn the call over to Tracey.

我現在將把電話轉給 Tracey。

Thank you, Fabrizio, and hello, everyone. I will briefly cover the fiscal 2022 fourth quarter and full year results, followed by our thoughts on the outlook for fiscal 2023.

謝謝你，法布里齊奧，大家好。我將簡要介紹 2022 財年第四季度和全年業績，然後是我們對 2023 財年前景的看法。

Our fourth quarter organic net sales fell 8%, a bit better than we expected, reflecting the disruptions in China related to COVID restrictions, including travel retail in Hainan, as well as the suspension of our commercial business in Russia and Ukraine. These matters more than offset continued growth from the recovery in the Americas and the rest of the EMEA region.

我們第四季度的有機淨銷售額下降了 8%，略好於我們的預期，這反映了中國與 COVID 限制相關的中斷，包括海南的旅遊零售，以及我們在俄羅斯和烏克蘭的商業業務暫停。這些問題遠遠抵消了美洲和歐洲、中東和非洲其他地區經濟復甦帶來的持續增長。

Reported sales growth included approximately 1 percentage point from the addition of sales from DECIEM, while currency translation negatively impacted growth by approximately 3 percentage points.

報告的銷售額增長包括來自 DECIEM 的銷售額增加約 1 個百分點，而貨幣換算對增長產生了約 3 個百分點的負面影響。

From a regional perspective, net sales in the Americas rose 9% organically, led by double-digit increases in makeup and fragrance. Consumers continued their return to brick-and-mortar, leading to strong growth in freestanding retail and specialty multi-stores. We grew sales in nearly every market in the region, with particular strength in Canada and across Latin America.

從區域來看，美洲的淨銷售額有機增長了 9%，主要是化妝品和香水的兩位數增長。消費者繼續回歸實體店，導致獨立零售店和專賣店的強勁增長。我們在該地區幾乎每個市場的銷售額都有所增長，尤其是在加拿大和整個拉丁美洲。

Net sales in our Europe, the Middle East and Africa region decreased 9% organically driven almost entirely by the disruptions in travel retail in China and the suspension of business in Russia and Ukraine. Of the remaining markets in the region, 10 rose double digit as tourists returned to the region, and consumer traffic and brick-and-mortar retail thrived. The makeup, fragrance and hair care categories rose strong double digits in EMEA, while the decline in skin care reflected the soft travel retail sales in Asia.

我們歐洲、中東和非洲地區的淨銷售額自然下降了 9%，這幾乎完全是由於中國旅遊零售業的中斷以及俄羅斯和烏克蘭的業務暫停。在該地區剩餘的市場中，隨著遊客返回該地區，以及消費客流量和實體零售蓬勃發展，有 10 個市場增長了兩位數。歐洲、中東和非洲地區的化妝品、香水和護髮品類強勁增長兩位數，而護膚品的下降則反映了亞洲旅遊零售銷售疲軟。

Global travel retail, which is primarily reported in this region, declined in Asia due to the COVID restrictions in China. Hainan, in particular, was impacted as stores were closed a portion of the quarter, travel was curtailed to the island and courier services for online deliveries were disrupted. However, travel retail in European markets and in the Americas rose triple digits as airport traffic returned and doors in the channel reopened.

由於中國的 COVID 限制，主要在該地區報告的全球旅遊零售在亞洲有所下降。特別是海南受到影響，因為本季度的部分時間商店關閉，前往該島的旅行減少，在線送貨的快遞服務中斷。然而，隨著機場客流量的恢復和渠道的重新開放，歐洲市場和美洲的旅遊零售額增長了三位數。

Net sales in the Asia Pacific region fell 19% organically. Greater China and Korea net sales were the most impacted by the COVID restriction. Hardest hit was Shanghai, where the city-wide lockdown lasted 2 months, impacting our distribution capacity serving all of China through the end of May. Overall, our brands performed well for the important 6.18 holiday festival and maintained top rankings across the beauty space on both Tmall and JD. Elsewhere in Asia, there were some other bright spots. Malaysia, Japan, the Philippines and Vietnam continued to recover and have begun to reopen to tourism.

亞太地區的淨銷售額有機下降了 19%。大中華區和韓國的淨銷售額受 COVID 限制的影響最大。受災最嚴重的是上海，全市範圍內的封鎖持續了 2 個月，影響了我們在 5 月底之前為全中國服務的配送能力。總體而言，我們的品牌在重要的 6.18 節日期間表現良好，並在天貓和京東的美妝領域保持領先。在亞洲其他地方，還有其他一些亮點。馬來西亞、日本、菲律賓和越南繼續復甦，並開始重新開放旅遊。

Looking now at net sales by product category. Fragrance led organic growth, with net sales rising 22% versus prior year. The fragrance category grew double digits across all regions. Luxury fragrances continue to resonate with consumers looking for indulgence, and our brands, including Tom Ford Beauty, Jo Malone London and Le Labo were once again star performers.

現在按產品類別查看淨銷售額。香水引領有機增長，淨銷售額較上年增長 22%。香水類別在所有地區都增長了兩位數。奢華香水繼續與尋求放縱的消費者產生共鳴，我們的品牌，包括 Tom Ford Beauty、Jo Malone London 和 Le Labo 再次成為明星。

Net sales in makeup rose 8% organically driven by the continued recovery and increased usage occasions in Western markets where makeup is generally the largest category. M·A·C and Clinique were top brand performers driven by hero products like M·A·C Studio Fix and the newly launched MACStack mascara as well as Clinique's Almost Lipstick in Black Honey. Continued success and expansion in specialty multi-doors is also aiding category growth.

化妝品的淨銷售額有機增長了 8%，這是由於西方市場的持續復甦和使用場合的增加，化妝品通常是最大的類別。 M·A·C 和倩碧在 M·A·C Studio Fix 等英雄產品和新推出的 MACStack 睫毛膏以及倩碧黑蜂蜜色號口紅的推動下成為頂級品牌。專業多門的持續成功和擴張也有助於類別增長。

Hair care net sales grew 5% organically. Excellent performance from Bumble and bumble in specialty multi contributed to growth. The launch of Aveda's vegan hair color in EMEA and a successful activation around the brand's hero and body franchise in Korea also aided category growth.

護髮淨銷售額有機增長 5%。 Bumble 的出色表現和專業多用途的 Bumble 為增長做出了貢獻。 Aveda 在歐洲、中東和非洲地區推出純素染髮劑以及圍繞該品牌在韓國的英雄和身體特許經營權的成功激活也有助於品類增長。

Net sales in skin care were the most impacted by the COVID-related restrictions in China, affecting Greater China, Asian travel retail and Korea. Skin care continues to represent approximately 2/3 of our business in the Asia Pacific region. Net sales fell 21% in the quarter due to the disruption of the Shanghai distribution center, with the greatest impact felt by Estée Lauder and La Mer brands. Skin care growth benefited from the addition of DECIEM sales in the quarter by approximately 3 percentage points.

護膚品的淨銷售額受中國與 COVID 相關的限制影響最大，影響到大中華區、亞洲旅遊零售和韓國。護膚品繼續占我們在亞太地區約 2/3 的業務。由於上海配送中心的中斷，本季度的淨銷售額下降了 21%，其中雅詩蘭黛和 La Mer 品牌受到的影響最大。護膚品的增長得益於本季度 DECIEM 銷售額增加約 3 個百分點。

Our gross margin declined 370 basis points compared to the fourth quarter last year driven primarily by factors affecting our supply chain. Global transportation delays, port congestion, labor and container shortages and higher costs for both ocean and air transport have increasingly pressured our cost of goods. Unfavorable category mix from softer skin care sales also contributed to the decline.

與去年第四季度相比，我們的毛利率下降了 370 個基點，主要是由於影響我們供應鏈的因素。全球運輸延誤、港口擁堵、勞動力和集裝箱短缺以及海運和空運成本的上漲，對我們的商品成本造成了越來越大的壓力。護膚品銷售疲軟帶來的不利品類組合也導致了下滑。

Operating expenses decreased 9%, driven by the curtailment of spending this quarter as COVID restrictions sharply reduced store traffic in China, including Hainan. We delivered operating income of $207 million for the quarter compared to $385 million in the prior year quarter. Diluted earnings per share of $0.42 included $0.03 dilution from the acquisition of DECIEM.

運營費用下降了 9%，原因是本季度的支出減少，因為 COVID 限制大幅減少了包括海南在內的中國的商店客流量。我們本季度的營業收入為 2.07 億美元，而去年同期為 3.85 億美元。每股攤薄收益 0.42 美元包括收購 DECIEM 帶來的 0.03 美元攤薄。

Shifting now to our full year results. Given the volatility experienced throughout the year, the results reflect the benefit derived from the diversification of our top line growth as well as the incredible agility of our teams and their ability to effectively manage costs while also simultaneously investing selectively for future growth.

現在轉向我們的全年業績。鑑於全年經歷的波動，結果反映了我們的收入增長的多樣化以及我們團隊令人難以置信的敏捷性以及他們有效管理成本同時還選擇性地為未來增長進行投資的能力所帶來的好處。

Net sales rose 8% organically, with double-digit gains in 3 out of 4 product categories and 2 out of 3 regions. Sales of our products online continued to thrive even as brick-and-mortar recovered, rising 11% for the year and representing 28% of sales. Among brick-and-mortar retail, most channels grew double digit, while department stores ended the year down slightly as pressure from COVID restrictions in Asia offset growth in other regions. And our business in travel retail also grew, ending fiscal 2022 at 27% of sales.

淨銷售額有機增長 8%，4 個產品類別中有 3 個和 3 個地區中有 2 個實現兩位數增長。即使實體店復甦，我們的產品在線銷售繼續蓬勃發展，全年增長 11%，佔銷售額的 28%。在實體零售中，大多數渠道都實現了兩位數的增長，而百貨公司在年底前略有下降，原因是亞洲新冠疫情限制的壓力抵消了其他地區的增長。我們的旅遊零售業務也在增長，到 2022 財年結束時佔銷售額的 27%。

Our gross margin fell 60 basis points to 75.8%. Favorable pricing and currency were more than offset by higher supply chain costs, which were more pronounced in the back half of the year; the impact of the acquisition of DECIEM; and higher costs for new products and sets. Operating expenses declined 150 basis points to 56% of sales.

我們的毛利率下降 60 個基點至 75.8%。有利的定價和貨幣被較高的供應鏈成本所抵消，這在今年下半年更為明顯；收購 DECIEM 的影響；以及新產品和套裝的更高成本。營業費用下降 150 個基點至銷售額的 56%。

Disciplined expense management and general and administrative costs was the largest contributor to the decline. The changes in our channel mix continue to reduce selling costs, and additionally, we continue to drive more effective resource allocation in our advertising and promotional mix. These favorable trends were partially offset by increased shipping costs.

嚴格的費用管理以及一般和行政成本是下降的最大原因。我們渠道組合的變化繼續降低銷售成本，此外，我們繼續在我們的廣告和促銷組合中推動更有效的資源分配。這些有利的趨勢被增加的運輸成本部分抵消。

During the year, we continue to create more flexibility in our cost structure to absorb inflation in wages, media and logistics. We achieved significant savings from our cost initiatives, including the Post-COVID Business Acceleration program. This has enabled us to realize greater expense leverage while also reinvesting in areas that support profitable growth, resulting in an overall improvement in our operating margin.

年內，我們繼續在成本結構中創造更大的靈活性，以吸收工資、媒體和物流方面的通脹。我們從成本計劃（包括 COVID 後業務加速計劃）中實現了顯著節省。這使我們能夠實現更大的費用槓桿，同時對支持盈利增長的領域進行再投資，從而整體提高我們的營業利潤率。

Our full year operating margin was 19.7%, representing an 80 basis point improvement over last year. This improvement includes the absorption of 60 basis points of dilution from DECIEM. Our effective tax rate for the year was 21.3%, a 260 basis point increase over the prior year, primarily driven by a lower current year tax benefit associated with share-based compensation and the prior year favorable impact of the U.S. government issuance of final GILTI tax regulations that provided for a retroactive high-tax exception.

我們全年的營業利潤率為 19.7%，比去年提高了 80 個基點。這種改進包括從 DECIEM 中吸收 60 個基點的稀釋。我們今年的有效稅率為 21.3%，比上年增加 260 個基點，主要是由於與基於股份的薪酬相關的較低的本年度稅收優惠以及上一年美國政府最終發行 GILTI 的有利影響規定追溯性高稅收例外的稅收法規。

Net earnings rose 11% to $2.6 billion, and diluted EPS increased 12% to $7.24. Earnings per share includes $0.04 accretion from currency translation and $0.05 dilution from the acquisition of DECIEM. The Post-COVID Business Acceleration program is wrapping up, with final estimated restructuring charges of $500 million to $515 million, at the top end of our original projections. We are pleased with the progress we achieved from this program.

淨利潤增長 11% 至 26 億美元，攤薄後每股收益增長 12% 至 7.24 美元。每股收益包括貨幣換算帶來的 0.04 美元增值和收購 DECIEM 帶來的 0.05 美元稀釋。 COVID 後業務加速計劃即將結束，最終估計的重組費用為 5 億至 5.15 億美元，處於我們最初預測的上限。我們對該計劃取得的進展感到高興。

We realigned our brand portfolio by exiting 4 designer fragrance brands as well as the BECCA and RODIN brands, and we are streamlining our market distribution for Smashbox and GLAMGLOW to improve their long-term viability. We optimized our brick-and-mortar distribution network. We have been and will continue to close underproductive freestanding retail stores as we rebalance our distribution network. By the end of fiscal 2023, we expect to have closed nearly 250 freestanding retail stores under the program.

我們通過退出 4 個設計師香水品牌以及 BECCA 和 RODIN 品牌重新調整了我們的品牌組合，我們正在簡化 Smashbox 和 GLAMGLOW 的市場分佈，以提高它們的長期生存能力。我們優化了實體分銷網絡。隨著我們重新平衡我們的分銷網絡，我們已經並將繼續關閉生產力低下的獨立零售店。到 2023 財年末，我們預計將根據該計劃關閉近 250 家獨立零售店。

We've also rationalized department store counters and other retail locations, improving our ability to focus our efforts on driving more profitable omnichannel opportunities in our remaining distribution. We also approved initiatives to optimize our organization across regions and throughout global functions to reduce complexity, leverage our scale and enhance our go-to-market capabilities.

我們還對百貨公司櫃檯和其他零售地點進行了合理化，提高了我們集中精力在剩餘分銷中推動更有利可圖的全渠道機會的能力。我們還批准了一些舉措，以優化我們跨地區和全球職能部門的組織，以降低複雜性、利用我們的規模並增強我們的上市能力。

When we are finished executing the program, we expect a net reduction of between 2,500 and 3,000 positions globally. We expect to execute the remaining projects to achieve estimated annualized gross savings of between $390 million and $410 million before taxes beginning in fiscal 2024. A portion of these savings have been and will continue to be reinvested in capabilities that sustain our long-term growth, including data analytics, online and advertising.

當我們完成該計劃的執行後，我們預計全球淨減少 2,500 至 3,000 個職位。我們預計執行剩餘的項目，以在 2024 財年開始的稅前實現估計的年度總節省額在 3.9 億美元至 4.1 億美元之間。這些節省的一部分已經並將繼續重新投資於維持我們長期增長的能力，包括數據分析、在線和廣告。

Turning now to our cash flow. We generated $3 billion in cash from operations, a 16% decrease from the $3.6 billion in the prior year period. The primary driver was higher working capital due to the end of year disruptions related to the pandemic the past few years as well as inventory to support future growth and to help mitigate the supply chain challenges we have faced in certain raw material and componentry areas.

現在轉向我們的現金流。我們從運營中產生了 30 億美元的現金，比去年同期的 36 億美元減少了 16%。主要驅動因素是由於過去幾年與大流行相關的年終中斷以及庫存增加，以支持未來的增長並幫助緩解我們在某些原材料和零部件領域面臨的供應鏈挑戰。

We utilized $1 billion for capital improvements, an increase of approximately $400 million over last year. We continue to invest in capacity and other supply chain improvements. We increased consumer-facing investments to support in-store experiences and recovery markets. We renovated office space, and we continue to invest in information technology.

我們將 10 億美元用於資本改進，比去年增加了約 4 億美元。我們繼續投資於產能和其他供應鏈改進。我們增加了面向消費者的投資，以支持店內體驗和恢復市場。我們翻新了辦公空間，並繼續投資於信息技術。

We also returned cash to stockholders at an accelerated pace this year as the need for more stringent cash conservation subsided with the progression of the recovery. During the year, we repurchased 7.4 million shares for $2.3 billion, and we paid $840 million in dividends, reflecting the 13% increase in our dividend rate that became effective in our fiscal second quarter.

隨著經濟復甦的推進，更嚴格的現金保護需求減弱，我們今年也加快了向股東返還現金的步伐。年內，我們以 23 億美元回購了 740 萬股股票，並支付了 8.4 億美元的股息，這反映了我們在第二財季生效的股息率提高了 13%。

All in all, we delivered a strong year despite significant disruptions, including continued outbreaks of COVID, higher inflation, supply chain constraints and the invasion in Ukraine, and we also continue to invest in foundational capabilities for the future, including new production capacity and innovation to support growth.

總而言之，儘管出現了重大中斷，包括 COVID 持續爆發、通脹上升、供應鏈限制和烏克蘭入侵，我們還是取得了強勁的一年，我們還繼續投資於未來的基礎能力，包括新的生產能力和創新來支持增長。

Now looking ahead to fiscal 2023, we believe that the prestige beauty category has ample opportunities for continued strong growth. Global prestige beauty is expected to grow mid- to high single digits driven by the continued recovery and the gradual reopening of the remaining markets impacted by COVID restrictions. Additionally, we look forward to the continued resumption of international travel, especially in Hainan and the rest of Asia.

現在展望 2023 財年，我們認為高級美容品類別有充足的機會繼續強勁增長。在持續復甦和受 COVID 限制影響的剩餘市場逐步重新開放的推動下，全球聲望美妝預計將增長中高個位數。此外，我們期待繼續恢復國際旅行，特別是在海南和亞洲其他地區。

We are concerned, however, that the recovery this fiscal year will once again not be a smooth one. Record inflation and the threat of recession or slowdown in many markets could temporarily dampen consumer enthusiasm and is causing some retailers to be more cautious regarding inventories. The strengthening dollar is putting pressure on our international earnings. Additionally, heightened geopolitical tensions could prove to be disruptive.

然而，我們擔心本財年的複蘇將再次不順利。創紀錄的通貨膨脹率以及許多市場的衰退或放緩的威脅可能會暫時抑制消費者的熱情，並導致一些零售商對庫存更加謹慎。美元走強正在給我們的國際收入帶來壓力。此外，加劇的地緣政治緊張局勢可能被證明具有破壞性。

With that backdrop in mind, for the full fiscal year, organic net sales are forecasted to grow 7% to 9%. We discontinued 4 designer fragrance licenses at the end of fiscal 2022. These brands generated $250 million in sales in fiscal 2022. In fiscal '23, we will sell some remaining inventory to the new licensees, primarily in the first half. Sales from both years will be excluded from our organic growth figures.

考慮到這一背景，預計整個財年的有機淨銷售額將增長 7% 至 9%。我們在 2022 財年末終止了 4 個設計師香水許可證。這些品牌在 2022 財年創造了 2.5 億美元的銷售額。在 23 財年，我們將主要在上半年將部分剩餘庫存出售給新的被許可人。這兩年的銷售額將不包括在我們的有機增長數據中。

At current levels, currency is projected to be a significant drag on our reported results in fiscal '23 as the U.S. dollar strengthens against key currencies. Based on July 31 spot rates at 1.018 for the euro, 1.215 for the pound, 6.746 for the Chinese yuan and 13.03 for the Korean won, we expect currency translation to dilute reported sales growth for the full fiscal year by 3 percentage points as well as an additional 1 point due to the impacts of foreign currency transactions in key international travel retail markets.

在目前的水平上，隨著美元兌主要貨幣走強，預計貨幣將嚴重拖累我們在 23 財年報告的業績。根據 7 月 31 日歐元 1.018、英鎊 1.215、人民幣 6.746 和韓元 13.03 的即期匯率，我們預計貨幣換算將稀釋整個財年報告的銷售額增長 3 個百分點以及由於主要國際旅遊零售市場外幣交易的影響，額外加分 1 分。

There are a few other items impacting our sales growth in fiscal 2023. Our list price increases are expected to add approximately 5.5 points of growth, helping to offset inflationary cost pressures. We take most of our pricing actions at the beginning of our fiscal year. New distribution, including new doors in existing markets, new markets for certain brands and expansion on new online platforms, could add another 2 points.

還有一些其他因素影響了我們在 2023 財年的銷售增長。我們的標價上漲預計將增加大約 5.5 個增長點，有助於抵消通脹成本壓力。我們在財政年度開始時採取了大部分定價行動。新的分銷渠道，包括現有市場的新大門、某些品牌的新市場以及新在線平台的擴張，可能會再增加 2 分。

Conversely, the loss of sales in Russia and Ukraine are expected to trim about 1 percentage point from sales growth. We plan to continue to drive margin expansion through operational efficiencies and cost savings while fueling additional advertising investment where appropriate.

相反，俄羅斯和烏克蘭的銷售損失預計將比銷售增長減少約 1 個百分點。我們計劃通過提高運營效率和節省成本繼續推動利潤增長，同時在適當的情況下增加額外的廣告投資。

Our full year effective tax rate is expected to be approximately 23%. Diluted EPS is expected to range between $7.39 and $7.54 before restructuring and other charges. This includes approximately $0.20 of dilution from currency translation. In constant currency, we expect EPS to rise by 5% to 7%. The impact from foreign currency transactions in key international travel retail markets is also expected to negatively impact adjusted diluted earnings per common share growth by 6 percentage points.

我們的全年有效稅率預計約為 23%。在重組和其他費用之前，稀釋後的每股收益預計在 7.39 美元至 7.54 美元之間。這包括大約 0.20 美元的貨幣換算稀釋。按固定匯率計算，我們預計每股收益將增長 5% 至 7%。預計主要國際旅遊零售市場的外匯交易也將對調整後的稀釋後每股普通股收益增長6個百分點產生負面影響。

At this time, we expect organic sales for our first quarter to fall 4% to 6%. The impact of sales from certain designer license exits are expected to dilute reported growth by approximately 1 point, and currency is expected to be dilutive by approximately 3 points. Our first quarter sales are expected to be negatively impacted by continued COVID restrictions in China and Hainan.

目前，我們預計第一季度的有機銷售額將下降 4% 至 6%。某些設計師許可證退出的銷售影響預計將使報告的增長稀釋約 1 個百分點，而貨幣預計將稀釋約 3 個百分點。我們第一季度的銷售預計將受到中國和海南持續的 COVID 限制的負面影響。

As you may recall, last year, we mentioned that some of our retailers in North America secured holiday shipments earlier due to supply chain concern, contributing 1.5 points to our growth in the first quarter of fiscal 2022. This year, retailers in the U.S. have been tightening their inventories, causing our net sales to trail retail sale.

您可能還記得，去年我們曾提到，由於供應鏈問題，我們在北美的一些零售商早些時候獲得了假期發貨，為我們在 2022 財年第一季度的增長貢獻了 1.5 個百分點。今年，美國的零售商已經一直在收緊庫存，導致我們的淨銷售額落後於零售額。

We expect China and travel retail in APAC to gradually improve throughout the first half of the fiscal year as COVID restrictions lift, and comparisons should ease in the back half of the year as we lap the invasion of Ukraine and the significant impact of COVID restrictions in China.

我們預計，隨著 COVID 限制解除，中國和亞太地區的旅遊零售將在整個財年上半年逐步改善，而隨著我們對烏克蘭的入侵和 COVID 限制的重大影響，今年下半年的比較應該會有所緩解。中國。

We expect first quarter EPS of $1.22 to $1.32. Currency translation is expected to be dilutive to EPS by $0.04. The impact from foreign currency transactions in key international travel retail markets is expected to negatively impact adjusted diluted earnings per common share growth by 5 percentage points.

我們預計第一季度每股收益為 1.22 美元至 1.32 美元。貨幣換算預計將對每股收益稀釋 0.04 美元。主要國際旅遊零售市場的外匯交易影響預計將對調整後的稀釋後每股普通股收益增長 5 個百分點產生負面影響。

In closing, we remain confident about the long-term prospects for global prestige beauty and in our strategy to outpace industry growth. Our multiple engines of growth delivered in fiscal 2022, and we anticipate this more diversified growth can continue in the coming year. And importantly, we continue to reinforce the fundamental drivers of our business that both enable and contribute to continued strong future sales and EPS growth.

最後，我們對全球知名美容產品的長期前景以及我們超越行業增長的戰略充滿信心。我們在 2022 財年實現了多種增長引擎，我們預計這種更加多元化的增長將在來年繼續。重要的是，我們將繼續加強我們業務的基本驅動力，這些驅動力既能促進未來銷售和每股收益的持續強勁增長，又能做出貢獻。

I would like to close by extending our heartfelt gratitude to our employees around the globe for continuing to deliver our results during this challenging macro environment.

最後，我要衷心感謝我們在全球各地的員工在這個充滿挑戰的宏觀環境中繼續取得成果。

That concludes our prepared remarks. We'll be happy to take your questions at this time.

我們準備好的發言到此結束。我們很樂意在這個時候回答您的問題。

(Operator Instructions) Our first question today comes from Dara Mohsenian of Morgan Stanley.

（操作員說明）我們今天的第一個問題來自摩根士丹利的 Dara Mohsenian。

So I have a 2-part question on China. First, just on the detail side, can you just give us a bit more of a sense on what you've factored in to both Q1 and the full year guidance on COVID lockdowns? Are you assuming the city restrictions that are in place today continue throughout Q1? And then what do you assume post Q1 in the balance of the year in terms of lingering shutdowns?

所以我有一個關於中國的兩部分問題。首先，就細節而言，您能否讓我們更多地了解您在第一季度和 COVID 鎖定的全年指導中考慮了哪些因素？您是否假設今天實施的城市限制在整個第一季度繼續存在？那麼，就揮之不去的停工而言，您如何假設第一季度之後的年度餘額？

And then second, it's very hard for us to judge externally your underlying market share performance in China ex supply issues. I'm sure it's difficult for you also. But just any perspective on underlying market share trends as supply returns to normal, perhaps so far in fiscal Q1, that'd be helpful. And if you expect any of the supply issues recently to have an impact on your forward share at all.

其次，我們很難從外部判斷您在中國除供應問題中的潛在市場份額表現。我相信你也很難。但是，隨著供應恢復正常，可能在第一財季到目前為止，對潛在市場份額趨勢的任何看法都會有所幫助。如果您預計最近的任何供應問題都會對您的遠期份額產生影響。

So I'll start, Dara, regarding China and what we've baked into our assumptions. Clearly, the first quarter, we are seeing some intermittent disruptions. Our distribution center is open. We're actually -- and opened in June, as we mentioned. So we were well prepared for the 6.18 holiday festival, as I mentioned in our prepared remarks. We are still seeing some intermittent shutdowns, not whole city shutdowns in China, at the moment, so that is still disrupting brick-and-mortar retail.

因此，Dara，我將首先談談中國以及我們在假設中所包含的內容。顯然，第一季度，我們看到了一些間歇性中斷。我們的配送中心是開放的。正如我們所提到的，我們實際上是在 6 月開業的。因此，正如我在準備好的發言中提到的那樣，我們為 6.18 假期做好了充分的準備。目前，我們仍然看到一些間歇性停工，而不是中國整個城市的停工，因此這仍在擾亂實體零售業。

So we have factored that in certainly to our Q1 expectations for the China market. As it relates to Hainan, as we mentioned also in our prepared remarks and I'm sure you all have seen, Hainan is experiencing a lockdown right now, so all of the doors are closed. Courier services as well have been suspended for online orders.

因此，我們肯定將這一點納入了我們對中國市場的第一季度預期。因為它涉及到海南，正如我們在準備好的講話中提到的那樣，我相信你們都已經看到，海南現在正在經歷封鎖，所以所有的門都關閉了。在線訂單的快遞服務也已暫停。

And we're obviously monitoring that day by day, but that is something that began in the month -- at the beginning of the month of August, and right now, we're expecting that to continue through the end of the month of August with some resumption in September, but not full resumption in September, recognizing that as this situation continues to impact the market, there will be some level of reticence for consumers to travel. But we certainly expect that, that will improve in the upcoming months.

我們顯然每天都在監控，但那是從本月開始的——在八月初，現在，我們預計這種情況會持續到八月底9 月有部分複工，但 9 月未全面復工，鑑於這種情況繼續影響市場，消費者對出行將有一定程度的緘默。但我們當然希望，在接下來的幾個月裡，情況會有所改善。

So I think first quarter and first half, we are expecting some level of muted performance in the region related to these issues. We do expect second quarter to be better than first quarter. And then in the second half, obviously, we're anniversarying quite a bit of disruption in the fourth quarter, some of which, began in the third quarter for both Hainan as well as China, and we do expect that we will see strong growth in the second half.

因此，我認為第一季度和上半年，我們預計該地區與這些問題相關的表現會出現一定程度的低迷。我們確實預計第二季度會好於第一季度。然後在下半年，很明顯，我們在第四季度迎來了相當多的混亂，其中一些是從第三季度開始的海南和中國，我們確實預計我們會看到強勁的增長在下半場。

For the full year, we do expect China to grow double digit. And so again, we are -- it is a market that we know there is very strong demand for prestige beauty and for our products, and the same with Hainan as well. So we are just navigating through these first few months of the year until we get on the other side in the second half.

全年，我們確實預計中國將實現兩位數的增長。再說一遍，我們知道這是一個市場，對高級美容和我們的產品有非常強烈的需求，海南也是如此。因此，我們只是在今年的前幾個月中導航，直到我們在下半年到達另一邊。

And I'll comment on market share. As Tracey just said, we do expect for the full year, China to go back growing double digit. We expect strong recovery in Hainan in the second part, in the second semester of the fiscal year, for sure, a gradual recovery before. That's our assumption, which obviously is going to give us also results in market share.

我將評論市場份額。正如特蕾西剛剛所說，我們確實預計全年中國將恢復兩位數的增長。我們預計海南下半年將強勁復甦，在本財年的第二季度，肯定是之前的逐步復甦。這是我們的假設，這顯然會給我們帶來市場份額。

So speaking about the last -- the quarter 4, to be clear, the market in China was down 10%. Estée Lauder Company was down 13%. So we lost 1 point of market share. We are now at 23%, so very strong market share. I would like to argue that given the lockdown of our distribution center, the impossibility of serving for almost 2 months, our consumers losing 1 point of market share temporarily is actually showing that already in June, we started recovery with an outstanding 6.18 event and the management of this.

所以談到最後一個 - 第 4 季度，要明確的是，中國市場下跌了 10%。雅詩蘭黛公司下跌 13%。所以我們失去了1個點的市場份額。我們現在是 23%，市場份額非常強勁。我想說的是，鑑於我們的配送中心被封鎖，無法服務近 2 個月，我們的消費者暫時失去了 1 個市場份額，這實際上表明，我們已經在 6 月開始了一場出色的 6.18 事件和對此進行管理。

And then to speak about what we are going to do further in the next 6 months to recover the market share we lost because of the distribution was down, first of all, strong brand portfolio brands. We are going to reinforce it with the launch of Aveda that just started, which is a very important launch entering the hair care, a big and growing category, the luxury hair care, big and growing category in China. We are going to double down on Tmall and entering new successful online distribution that we started with JD, where we still have opportunity of deploying more brands in other areas where we are testing or distributing.

然後談談我們將在未來 6 個月內進一步採取什麼措施來恢復由於分銷下降而失去的市場份額，首先是強大的品牌組合品牌。我們將通過剛剛開始的 Aveda 的推出來加強這一點，這是進入護髮這一龐大且不斷增長的品類、豪華護髮、中國龐大且不斷增長的品類的一個非常重要的推出。我們將在天貓上加倍投入，並進入我們從京東開始的新的成功在線分銷，我們仍然有機會在我們正在測試或分銷的其他領域部署更多品牌。

We have very strong innovation starting with what we discussed in the remarks, which is the Estée Lauder Advanced Night Repair eye product, which -- eye is one of the most important categories in China, and to be clear, it's one of the most important recruitment strategies, is eye products in the market. As you know, we are opening an R&D center this year, and so we are investing at even stronger innovations in the future.

從我們在評論中討論的內容開始，我們有非常強大的創新，那就是雅詩蘭黛高級夜間修復眼部產品，它——眼部是中國最重要的類別之一，明確地說，它是最重要的類別之一招聘策略，是市場眼中的產品。如您所知，我們今年將開設一個研發中心，因此我們將投資於未來更強大的創新。

We are getting a great strategy to win in key shopping moments. I think that what we demonstrated in (inaudible) in June for the 18.6 event is extraordinary. In our team, we are coming out of 40 days down in Shanghai, and they were able to operate successfully a very complex and important event. We are going to do the same with 11.11, hopefully, now in the second quarter.

我們正在製定一個在關鍵購物時刻取勝的好策略。我認為我們在 6 月（聽不清）中為 18.6 事件展示的內容非同尋常。在我們的團隊中，我們在上海結束了 40 天的工作，他們成功地完成了一項非常複雜和重要的活動。希望現在在第二季度，我們將對 11.11 做同樣的事情。

We are also improving our distribution in brick-and-mortar. We are opening new cities and new doors in the existing fast-growing cities. We have a new distribution center that we have opened. Actually, we opened this Friday in Guangzhou to mitigate risk of future distribution disruptions, and then this will turn into a definite ongoing new second big distribution center in the beginning of 2023.

我們也在改善我們在實體店的分銷。我們正在現有的快速發展的城市中開闢新的城市和新的大門。我們已經開設了一個新的配送中心。實際上，我們本週五在廣州開業是為了降低未來配送中斷的風險，然後它將在 2023 年初成為一個明確的新的第二大配送中心。

We believe the Hainan -- despite the current lockdown, which is obviously painful in the short term, but is a super strong opportunities for the long term, the power of Hainan in the future remain intact, and we have strong presence and market share in this operation. And I want to say we have an amazing local team, and this local team, they've been able to manage through these difficulties extremely well, and we believe that's strength on which we can count in the future to continue building market share over time. Thank you for the question.

我們認為，海南——儘管目前的封城，在短期內顯然是痛苦的，但從長遠來看是一個超級強大的機會，未來海南的力量將保持不變，我們在中國擁有強大的存在和市場份額。這個操作。我想說我們有一個了不起的本地團隊，這個本地團隊，他們能夠非常好地度過這些困難，我們相信這是我們未來可以依靠的力量，隨著時間的推移繼續擴大市場份額.感謝你的提問。

The next question is from Lauren Lieberman of Barclays.

下一個問題來自巴克萊的 Lauren Lieberman。

I was struck when you mentioned that pricing this year expecting to be north of 5%. And if I then layer in what you suggested could be a contribution from distribution, it suggests very limited, let's call it, like-for-like door volume growth.

當你提到今年的定價預計將超過 5% 時，我感到很震驚。如果我隨後將您建議的可能是分銷的貢獻分層，它表明非常有限，我們稱之為同類門量增長。

So just I was curious if you could comment on that, because thinking about -- you mentioned, Fabrizio, recruitment, you're talking about launching Aveda. It just feels like there's a lot happening that should still be driving unit growth, and so I was curious if you could comment on that.

所以我只是想知道你是否可以對此發表評論，因為考慮到 - 你提到，Fabrizio，招聘，你正在談論推出 Aveda。感覺還有很多事情應該仍然在推動單位增長，所以我很好奇你是否可以對此發表評論。

Yes, Lauren. So I'll start. We did call out, obviously, in our prepared remarks and in the press release a couple of adjustments in our revenue numbers this year. So we did exit our prestige designer licensed businesses. Basically, we ended those licenses. Our focus is on luxury fragrance and artisanal fragrance. And so we did let those licenses expire. That is about 1 point of growth.

是的，勞倫。所以我要開始了。顯然，在我們準備好的評論和新聞稿中，我們確實對今年的收入數字進行了一些調整。所以我們確實退出了我們的聲望設計師許可業務。基本上，我們終止了這些許可證。我們的重點是奢華香水和手工香水。所以我們確實讓這些許可證過期。這大約是 1 個增長點。

The other point is related to the suspension of our operations in Russia and Ukraine. And so that is also contributing another point, if you will, to adjusted growth and to the suppression of growth that you're referring to. And then lastly, the currency impact on revenue also impacts us in terms of our growth algorithm.

另一點與我們在俄羅斯和烏克蘭的業務暫停有關。因此，如果你願意的話，這也有助於調整增長和抑制你所指的增長。最後，貨幣對收入的影響也會影響我們的增長算法。

So if you adjust for all of those items, it's about 6 points of difference between what we've guided for the full year and where we expect -- where we would expect to end if none of those events had happened. So that is the reason why the growth looks a bit muted even with the 5.5% pricing.

因此，如果您針對所有這些項目進行調整，那麼我們全年的指導與我們的預期之間大約有 6 個百分點的差異——如果這些事件都沒有發生，我們預計會結束。這就是為什麼即使以 5.5% 的定價，增長看起來也有點低迷的原因。

The other thing I would say again is we are starting the year with a fair amount of disruption as we just spoke about in some of our very important markets. And we are assuming a more gradual recovery, and that, too, impacts our unit growth.

我要再次說的另一件事是，正如我們剛剛在一些非常重要的市場中談到的那樣，我們在今年開始時會出現相當大的混亂。我們假設復甦會更加緩慢，這也會影響我們的單位增長。

The next question is from Nik Modi of RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Nik Modi。

I just wanted to revisit China, just given some of the economic data that we've been seeing recently, and curious if you've witnessed any evidence of any economic pressure impacting consumption.

我只是想重溫一下中國，只是考慮到我們最近看到的一些經濟數據，並且好奇你是否目睹了任何經濟壓力影響消費的證據。

And I know it's hard with all the noise of COVID and the shutdowns, but perhaps maybe some of the markets where you haven't seen a big COVID impact, maybe you can share what trends would look like. Any perspective would be helpful.

而且我知道 COVID 的所有噪音和停工都很難，但也許在一些你沒有看到 COVID 大影響的市場上，也許你可以分享一下趨勢會是什麼樣子。任何觀點都會有所幫助。

No, actually, we don't feel this. It's probably the prestige cosmetic, luxury cosmetic segment is more protected because of the big passion of consumers for this category, and as you know, the clear preference for the Chinese consumer for the prestige solutions, which is growing very fast for years now. And the percentage of the prestige for the total market keeps improving. So we don't see this.

不，實際上，我們沒有這種感覺。這可能是高檔化妝品，奢侈品化妝品市場受到更多保護，因為消費者對這一類別的熱情很高，而且如你所知，中國消費者對高檔解決方案的明顯偏好，多年來這種解決方案增長非常快。並且在整個市場中的聲望比例不斷提高。所以我們看不到這一點。

The proof I can give you is that the top of the ranges are growing the fastest also on our brand. La Mer is one of our fastest-growing brands, as an example. So the -- and importantly, the market is very active when there are no restrictions, when there is no issues. So we don't see any -- obviously, we are prudent in the assumptions we are making on the China economy development in the short term as everyone is, but we don't see a very big impact on our business in absence of COVID restrictions situations.

我可以給你的證據是，在我們的品牌中，頂級產品的增長速度也是最快的。例如，La Mer 是我們發展最快的品牌之一。所以——而且重要的是，當沒有限制、沒有問題時，市場非常活躍。所以我們沒有看到任何——顯然，我們對短期內中國經濟發展的假設是謹慎的，但在沒有 COVID 的情況下，我們認為對我們的業務沒有太大影響限制情況。

The next question is from Rupesh Parikh of Oppenheimer.

下一個問題來自奧本海默的 Rupesh Parikh。

So Tracey, I was wondering if you guys can provide more color on the interplay between gross margins and SG&A for the year.

所以特蕾西，我想知道你們是否可以為今年的毛利率和 SG&A 之間的相互作用提供更多的色彩。

Yes. Obviously, we experienced some gross margin pressure in Q4. It was related to some of the activity that we had to manage through in terms of getting product to market and some of the disruption that's in general in the supply chain.

是的。顯然，我們在第四季度經歷了一些毛利率壓力。這與我們在將產品推向市場方面必須管理的一些活動以及供應鏈中普遍存在的一些中斷有關。

So -- and as we think about the first quarter and the guidance that we've provided, we do expect gross margins to be down as well in the first quarter, not to the same extent as they were in the fourth quarter, and that will gradually improve throughout the year as we're anniversarying some of those disruptions.

所以 - 當我們考慮第一季度和我們提供的指導時，我們確實預計第一季度的毛利率也會下降，而不是與第四季度相同的程度，而且隨著我們對其中一些中斷進行週年紀念，這一年將逐漸改善。

So for the full year, we're expecting gross margins to be around flat at the moment. But the first -- it's a tale of 2 halves in terms of the first half and some of the things we're anniversarying and some of the pressures that we're seeing on the business. But we do expect for the full year gross margin to be flat.

因此，對於全年，我們預計目前的毛利率將持平。但第一個 - 就上半年而言，這是一個兩半的故事，我們正在紀念的一些事情以及我們在業務中看到的一些壓力。但我們確實預計全年毛利率將持平。

In terms of SG&A, again, we expect that we will continue to get good SG&A leverage. I think we're incredibly proud of what our team was able to deliver this past fiscal year and fiscal 2022 in terms of the expense leverage that we were able to deliver. And it's something that we are keenly focused on while also focused on investing in the important areas that drive our long-term growth algorithm. So those are things that we continue to manage throughout the year, and we'll get continued expense leverage this year.

在 SG&A 方面，我們再次預計我們將繼續獲得良好的 SG&A 槓桿作用。我認為，就我們能夠提供的費用槓桿而言，我們為我們的團隊在上一財年和 2022 財年能夠提供的服務感到無比自豪。這是我們非常關注的事情，同時也專注於投資推動我們長期增長算法的重要領域。所以這些是我們全年繼續管理的事情，今年我們將獲得持續的費用槓桿。

The next question is from Mark Astrachan of Stifel.

下一個問題來自 Stifel 的 Mark Astrachan。

Wanted to follow up sort of directionally on the last question on gross margin. If you take a look at it even pre-COVID, pre-supply chain and inflationary pressures, adjust for some of the accounting changes kind of going back 3, 4 years ago, it's still kind of down over the last 5 years, and your expectations were flat this year. I guess kind of the puts and takes, which you're taking out of price.

想對最後一個關於毛利率的問題進行定向跟進。如果你看一下它，即使是在 COVID 之前、供應鏈之前和通貨膨脹壓力，調整一些可以追溯到 3、4 年前的會計變化，在過去 5 年裡它仍然有點下降，而且你的今年的預期持平。我猜是那種看跌期權，你把它從價格中剔除。

You've got the Post-COVID Business Acceleration plan, so (inaudible) of productivity, there's a mix shift in the business towards direct-to-consumer. I guess maybe if you could talk directionally about kind of what has led the progression down, but more importantly, kind of where do you think it can go over time. Is that high 70s level achievable again? Why or why not? That'd be helpful.

您已經制定了 COVID 後業務加速計劃，因此（聽不清）生產力，業務向直接面向消費者的方向轉變。我想如果你能有針對性地談論導致進展下降的原因，但更重要的是，你認為隨著時間的推移它會走向何方。 70年代的高水平還能再實現嗎？為什麼或者為什麼不？那會很有幫助。

Yes. I think we've seen over the time frame that you're speaking about, and yes, we definitely had accounting changes that impacted the gross margin between expenses and gross margin. But we've seen differences in the business in terms of our mix of business. And so fundamentally -- and I know it's important to understand what's going on in gross margin, but really, what we focus on is operating margin.

是的。我想我們已經看到了你所說的時間範圍，是的，我們肯定有會計變化影響了費用和毛利率之間的毛利率。但是我們在業務組合方面看到了業務差異。所以從根本上說——我知道了解毛利率的情況很重要，但實際上，我們關注的是營業利潤率。

And as we have seen channel shifts and market shifts, et cetera, those have impacted the gross margin, perhaps in some cases -- in some of those cases, more negatively, but they have impacted the operating margin quite positively. So at the end of the day, we're focused on delivering operating margin and profitable growth. In terms of whether or not we expect that we will get back to higher levels of gross margin, it is something that we are working on with our supply chain.

正如我們所看到的渠道轉變和市場轉變等等，這些影響了毛利率，也許在某些情況下——在某些情況下，更負面，但它們對營業利潤率的影響相當積極。因此，歸根結底，我們專注於實現營業利潤率和盈利增長。至於我們是否期望我們會回到更高水平的毛利率，這是我們正在與我們的供應鏈合作的事情。

So between our direct procurement programs, between some of the things we're doing in transportation, the opening of our Japanese plant, which should allow us to be not only closer to the consumer, but even to some of our suppliers for inbound freight should also help us from a gross margin standpoint. I'm not going to commit that we're going to get back to the gross margins that we were at 5 or 6 years ago, but do know that there are things that we see that are opportunities that we're also working on in very close partnership with our supply chain.

因此，在我們的直接採購計劃之間，在我們在運輸方面所做的一些事情之間，在我們日本工廠的開設之間，這應該讓我們不僅更接近消費者，甚至我們的一些入境貨運供應商也應該從毛利率的角度來看也對我們有所幫助。我不會承諾我們將恢復到 5 或 6 年前的毛利率，但要知道我們看到的一些事情是我們也在努力的機會與我們的供應鏈非常密切的合作關係。

The next question is from Steve Powers of Deutsche Bank.

下一個問題來自德意志銀行的史蒂夫鮑爾斯。

I wanted to focus on makeup, if I could. Obviously, the trajectory there is promising. You've been talking about the makeup renaissance for a while, and it directionally is -- seems to be taking shape. But we're still below '19 levels by a fair degree.

如果可以的話，我想專注於化妝。顯然，那裡的發展軌跡是有希望的。你一直在談論化妝復興一段時間，而且它的方向是 - 似乎正在形成。但我們仍然在一定程度上低於 19 年的水平。

So I guess, really, the question is, sort of what's your expectation for that recovery to continue the progress you expect to make over the next 12 months? And to some extent, when do you expect to be able to kind of converge with those prepandemic levels?

所以我想，真的，問題是，你對這種複甦的期望是什麼，以繼續你期望在未來 12 個月內取得的進展？在某種程度上，您預計何時能夠與大流行前的水平趨於一致？

And as we talk about that, I'm mostly focused on the top line, but obviously, profitability comes alongside that, and your thoughts on rebuilding profitability in makeup alongside the top line would be helpful as well.

當我們談到這一點時，我主要關注頂線，但顯然，盈利能力隨之而來，你對在頂線旁邊重建化妝品盈利能力的想法也會有所幫助。

Okay. So let me -- I'll start. In terms of makeup, we continue to be quite bullish on the makeup category. We did see a recovery, particularly in our Western markets. So part of the strength that we saw this year, this past fiscal year, in terms of the growth in makeup and the improvement in margin that we saw in makeup was related to recovery, in particular, in brick-and-mortar in our Western markets, so in the Americas as well as in Europe.

好的。所以讓我 - 我會開始。在彩妝方面，我們繼續看好彩妝品類。我們確實看到了復甦，尤其是在我們的西方市場。因此，我們在上一財年看到的化妝品增長和利潤率改善的部分優勢與復蘇有關，特別是在我們西方的實體店中市場，因此在美洲和歐洲。

We are still challenged a bit in makeup in our Eastern markets because of some of the disruption that's going on, in particular, in brick-and-mortar. And -- but we expect makeup to gradually improve as the disruption in those markets improve, and similar to Western markets, as consumers resume their normal social and professional occasions. So that is our expectation in terms of when we'll get back to fiscal '19 levels for makeup, depending on the disruptions this year.

由於正在發生的一些破壞，特別是在實體店中，我們在東部市場的化妝仍然面臨一些挑戰。而且——但我們預計，隨著這些市場的顛覆性改善，化妝品將逐漸改善，類似於西方市場，隨著消費者恢復正常的社交和職業場合。因此，這就是我們對何時恢復到 19 財年的化妝水平的預期，具體取決於今年的中斷情況。

It may take another year or so. But our makeup brands have fantastic innovation for this year, in particular, the M·A·C brand, but others as well. And so we're very encouraged in terms of makeup. As it relates to the margin, the makeup category has been particularly hit by the pandemic that is now going on for 3 years because of the brick-and-mortar distribution of makeup.

可能還需要一年左右的時間。但今年我們的彩妝品牌有很棒的創新，尤其是M·A·C品牌，其他品牌也一樣。所以我們在化妝方面非常受鼓舞。由於與利潤率有關，由於化妝品的實體分佈，彩妝品類尤其受到目前持續 3 年的流行病的打擊。

And in particular, with a few of our makeup brands where services in store are very well loved by our consumers and the in-store experience, that took -- that was a bit of a challenge with doors closed and with traffic down. And traffic is still down in brick-and-mortar. Even in the markets that are in recovery, traffic has not recovered to prior levels, but it's well on its way to do so.

特別是，對於我們的一些化妝品品牌，我們的消費者非常喜歡店內服務和店內體驗，這在關門和客流量減少的情況下是一個挑戰。實體店的客流量仍在下降。即使在正在復甦的市場中，流量也沒有恢復到以前的水平，但它正在朝著恢復的方向發展。

So I think one of the reasons why we took some of the actions we did with the Post-COVID Business Acceleration program is take a point of view, to your point, of what that will look like when things are stabilized and what the mix between brick-and-mortar and online should be, and took proactive measures to close some underproductive doors, and largely, that will help the makeup category. Most -- many of those doors were makeup doors. Some of them were Origins doors. Some of them were Bobbi doors, actually. So that should continue to help to make up category as volume returns to -- in particular, brick-and-mortar.

因此，我認為我們採取一些行動的原因之一是我們在 COVID 後業務加速計劃中採取了一些行動，就您而言，採取一種觀點，即當事情穩定下來時會是什麼樣子，以及兩者之間的混合實體店和在線商店應該並採取積極措施關閉一些生產效率低下的大門，這在很大程度上將有助於化妝品類別。大多數——其中許多門都是化妝門。其中一些是起源門。實際上，其中一些是波比門。因此，隨著銷量回歸，尤其是實體店，這將繼續有助於彌補類別。

Yes. I just want to add that the makeup will continue to follow the user education on makeup. So the normalization from a consumer standpoint. This is happening, but it's not yet up to the levels it used to be. So it's going there and will be there. So a lot of benefits are still in front of us and not behind us. So we will see further progress over time, particularly in the East where the COVID lockdowns are still creating issues, not only in distribution, but also in consumer usage of makeup.

是的。我只想補充一點，彩妝將繼續遵循用戶對彩妝的教育。因此，從消費者的角度來看，標準化。這種情況正在發生，但還沒有達到以前的水平。所以它會去那裡並將在那裡。所以很多好處仍然擺在我們面前，而不是在我們身後。因此，隨著時間的推移，我們將看到進一步的進展，特別是在東部地區，COVID 的封鎖仍然在製造問題，不僅在分銷方面，而且在消費者對化妝品的使用方面。

The other important thing is that makeup is really, as Tracey explained, is linked to services. And so to have the proper experience, you need critical mass per store. And the critical mass per store is dependent on traffic, as Tracey said. So this is also getting better. The renaissance is, if you want, at the beginning. So more progress is in front of us. And that progress in particular would also impact positively the bottom line and the profitability of the category. So we are in the right direction, and we are not yet done on this.

另一個重要的事情是，正如 Tracey 解釋的那樣，化妝確實與服務有關。因此，為了獲得適當的體驗，您需要每家商店的臨界質量。正如 Tracey 所說，每家商店的臨界質量取決於客流量。所以這也越來越好。如果你願意，復興就在開始。所以更多的進步擺在我們面前。特別是這一進展也會對該類別的底線和盈利能力產生積極影響。所以我們的方向是正確的，但我們還沒有完成。

The next question is from Bryan Spillane of Bank of America.

下一個問題來自美國銀行的 Bryan Spillane。

So I just wanted to ask -- I think you mentioned in the prepared remarks, you talked a bit about product innovation for '23, and I think also in the press release, you talked about targeted distribution opportunities. So can you just give us a little bit more color on those 2 items?

所以我只是想問一下——我想你在準備好的評論中提到了，你談到了 23 年的產品創新，而且我認為在新聞稿中，你也談到了有針對性的分銷機會。那麼你能給我們在這兩個項目上多一點顏色嗎？

And I guess one of the things I'm interested in is just, is it sequentially -- especially on the product innovation, is there sequentially -- do we expect, I guess, more of a contribution from new products or product innovation in '23 versus what we've seen in the last 2 years just because the environment is a little bit maybe more accepting of that? So just some color on those 2 items would be helpful.

我想我感興趣的一件事是，它是按順序排列的——尤其是在產品創新方面，是不是按順序排列的——我猜，我們是否期望更多來自新產品或產品創新的貢獻？ 23 與我們在過去 2 年中看到的相比，僅僅是因為環境可能更能接受這一點？因此，只需在這 2 個項目上添加一些顏色就會有所幫助。

Yes. I'll start on the product innovation. The product innovation is -- was at 25% already last year. This is a very good number, and we believe it's an efficient number. Now it can be 25% or 30%, depending by quarter. But that's, anyway, very powerful innovation. The thing that we have improved also, the rhythm of innovation. We have innovation really gradually per category, per quarter, per brand in a very sophistic way, market by market to make sure that we can leverage it. And the innovation is strongly supported by sufficient media. And our advertising in total is increasing in fiscal year [2030] in absolute level.

是的。我將從產品創新開始。產品創新是——去年已經是 25%。這是一個非常好的數字，我們相信這是一個有效的數字。現在它可以是 25% 或 30%，具體取決於季度。但無論如何，這是非常強大的創新。我們也改進了，創新的節奏。我們以一種非常複雜的方式，逐個市場地逐個市場地逐個地逐個地逐個地逐個進行創新，以確保我們可以利用它。並且創新得到了充足媒體的大力支持。我們的廣告總量在 [2030] 財年的絕對水平上正在增加。

And that's listed in the current assumptions guidance. And these advertising -- some part of it is guiding the innovation and the innovation results, but also, a lot of our innovation is attracting earned media value in a fantastic way. A good example of this has been MACStacks in the last fiscal year. So it's not only paid media, but it's also earned media that is attached to high-quality innovation. And so some of the high-quality innovation is also efficient from a spending standpoint, for a media standpoint for that reason.

這已在當前的假設指南中列出。這些廣告——其中一部分是引導創新和創新成果，但同時，我們的很多創新都以一種奇妙的方式吸引了媒體價值。上一財年的 MACStacks 就是一個很好的例子。因此，它不僅是付費媒體，而且是與高質量創新相關的免費媒體。因此，從支出的角度來看，從媒體的角度來看，一些高質量的創新也是有效的。

And then finally, innovation is driving pricing because innovation many times is about improving product, improving product performance or entering benefit areas that are more important for the consumer that's willing to pay more. And so we can invest in our standing products that deliver these results and price for these results as well. So it's a combination of factors why innovation is and will continue to be a very strong driver. And if you assume more or less the same percentage of innovation on a growing business, so innovation in absolute will also increase year after year in absolute level.

最後，創新正在推動定價，因為創新很多時候是關於改進產品、提高產品性能或進入對願意支付更多費用的消費者而言更重要的利益領域。因此，我們可以投資於我們的常備產品，以提供這些結果和這些結果的價格。因此，創新是並將繼續成為強大驅動力的原因是多種因素的結合。如果你假設在成長中的業務中創新的百分比或多或少相同，那麼絕對創新也將在絕對水平上逐年增加。

On distribution, we have opportunities still to increase distribution. And we are doing it particularly online where there are a lot of new online ways to access consumer in efficient and productive way. It's also important to understand that the distribution opportunity at the end is about consumer coverage. It's about covering consumers that have desire today that are not covered.

在分銷方面，我們仍有機會增加分銷。我們正在做這件事，特別是在網上，有很多新的在線方式可以以高效和富有成效的方式訪問消費者。同樣重要的是要了解最終的分銷機會與消費者覆蓋率有關。它是關於覆蓋今天沒有被覆蓋的有慾望的消費者。

The best example of this is, for example, in emerging markets, starting from China, as an example, where we are covering 148 cities, but demand comes from 600 cities or more, and we serve the cities where there is no physical distribution value online. This is happening the same in India. It's happening in Brazil. It's happening in Mexico. It's happening in many of the emerging markets. So the new distribution online is covering new consumer in the large majority of cases, and it's very efficient.

最好的例子是，比如在新興市場，從中國開始，比如我們覆蓋了148個城市，但需求來自600個或更多的城市，我們服務於沒有物流價值的城市在線的。這在印度也發生了同樣的事情。它正在巴西發生。它發生在墨西哥。許多新興市場都在發生這種情況。所以新的線上分銷在絕大多數情況下都是覆蓋新消費者的，而且效率很高。

There is a lot of opportunity. There is some, which are already in this fiscal year, the fiscal year 2023 assumption, and there are many in the medium and long term that we are studying and prepared to do.

有很多機會。有一些已經在本財年，即 2023 財年假設中，還有很多中長期我們正在研究和準備做的事情。

The next question is from Olivia Tong of Raymond James.

下一個問題來自 Raymond James 的 Olivia Tong。

I wanted to ask you a little bit more about the price increases that you're planning, realizing, of course, it's not clearly the same as CPG. But by tier, sort of super luxury, ultra-prestige, how your prices will compare to your peers, especially given that more and more sales are happening in multichannel or online where you'll be closer to other brands or consumers can see multiple brands on one screen?

我想問你更多關於你計劃的價格上漲的問題，當然，這與 CPG 顯然不同。但是按級別，超級奢侈品，超聲望，你的價格將如何與你的同行相比，特別是考慮到越來越多的銷售發生在多渠道或在線，你將更接近其他品牌或消費者可以看到多個品牌在一個屏幕上？

And then if I could just sneak in another question, sort of piggybacking on Bryan's about the distribution -- the targeted expansion of distribution to retailers that provide broader consumer reach. Fairly certain I know what isn't included, but if you could talk a little bit about what that might entail globally and how that -- the channel mix progresses as a result.

然後，如果我可以偷偷問下另一個問題，有點像 Bryan 關於分銷的捎帶 - 有針對性地將分銷擴展到提供更廣泛消費者範圍的零售商。相當肯定我知道什麼不包括在內，但如果你能談談這可能在全球範圍內帶來什麼以及它是如何產生的——渠道組合會因此而取得進展。

Yes. So I'll start, Olivia, on the pricing piece. We have a very sophisticated algorithm for pricing. So we do look at price and by SKU, actually, by brand, by SKU, relative to what the brand has defined as the competitive set for that particular SKU when we consider what pricing we're going to take, for instance, on whether it's on a pricing increase on an existing product or even when we introduce a new product. So that's very much taken into consideration.

是的。奧利維亞，我將從定價部分開始。我們有一個非常複雜的定價算法。因此，當我們考慮我們將採取什麼定價時，我們確實會查看價格和 SKU，實際上是按品牌、按 SKU，相對於品牌定義為該特定 SKU 的競爭集合，例如，是否它是在現有產品的價格上漲，甚至在我們推出新產品時。所以這是非常考慮的。

We also, depending on -- because we have a very broad price tier, obviously, of our products from La Mer and Frédéric Malle and Tom Ford to Clinique and M·A·C and The Ordinary, we also look at for our entry-level prestige brands, the gap to their comparable closest mass brand. And so we are also cognizant of that.

我們還取決於 - 因為我們的產品價格範圍很廣，顯然，從 La Mer 和 Frédéric Malle 和 Tom Ford 到 Clinique 和 M·A·C 和 The Ordinary，我們也在尋找我們的入門產品——一級聲望品牌，差距最接近他們可比的大眾品牌。所以我們也意識到了這一點。

That has served us quite well in those multi-specialty accounts that you're referring to, where our goal continues to be trading consumers up from mass to prestige. And that has worked quite well for us in those particular accounts. And then you had a follow-up question on distribution, I think.

這在您所指的那些多專業賬戶中為我們提供了很好的服務，我們的目標仍然是將消費者從大眾交易提升到聲望。在那些特定的帳戶中，這對我們來說效果很好。然後你有一個關於分發的後續問題，我想。

That's right. Just understanding when you say you're expanding your distribution to provide a broader consumer reach, what -- I think we all know what that does not entail, but what that does entail globally and what that -- what the implications might be both for sales and profit?

這是正確的。只是理解當你說你正在擴大你的分銷以提供更廣泛的消費者範圍時，我認為我們都知道這並不意味著什麼，但它在全球範圍內需要什麼以及那意味著什麼——這可能對雙方都有什麼影響銷售額和利潤？

Frankly, it's what I was explaining in the answer to the previous question. There are -- for example, if you go online in a new partner, with a new partner online, with a new distribution, we cover cities and we cover areas, which are not covered by brick-and-mortar. So these reach consumers that were not reached before. And that's why expand our reach. That's the key thing.

坦率地說，這就是我在上一個問題的答案中所解釋的。有——例如，如果你在一個新的合作夥伴那裡上網，和一個新的合作夥伴一起上網，用一個新的分銷渠道，我們覆蓋城市，我們覆蓋實體店不覆蓋的地區。因此，這些產品觸及了以前未觸及的消費者。這就是為什麼擴大我們的影響力。這是關鍵。

So in other words, doesn't -- we try to avoid duplication in distribution as much as possible and maximize consumer coverage. And the key strong benefit that we are getting, as I said, particularly in emerging markets, but that's true everywhere in the world, is the fact that we are getting new consumers into our business and sourcing new consumers from mass into prestige. Tracey?

所以換句話說，不是 - 我們盡量避免重複分發並最大限度地擴大消費者覆蓋面。正如我所說，我們正在獲得的主要強大利益，特別是在新興市場，但在世界各地都是如此，我們正在讓新消費者進入我們的業務並從大眾採購新消費者到聲望。特蕾西？

Yes. And Olivia, so we mentioned in the prepared remarks, we are introducing Aveda into China. That's expanding distribution for the brand. So one way we expand distribution is introducing products into a new market, as Fabrizio was indicating, other emerging markets. We introduced The Ordinary into India via Nykaa. So that's one way that we expand distribution, particularly in a market where consumers had not had that opportunity to purchase that product before unless they traveled.

是的。還有 Olivia，所以我們在準備好的評論中提到，我們正在將 Aveda 引入中國。這正在擴大該品牌的分銷範圍。因此，我們擴大分銷的一種方式是將產品引入新市場，正如 Fabrizio 所指出的那樣，其他新興市場。我們通過 Nykaa 將 The Ordinary 引入印度。因此，這是我們擴大分銷的一種方式，特別是在消費者之前沒有機會購買該產品的市場，除非他們旅行。

We also expand with our existing retailers. So here in North America, as Ulta and Sephora opened new doors or any other retailer opens new doors, it is our consideration, without being over retailed from a brick-and-mortar standpoint, of expanding in those stores as well. And that's an expanded -- expansion in terms of distribution. So if our retailer opens 20 new doors this year, we will open those doors with them. And so we include that in our distribution. I think I said in my prepared remarks that we expect around 2 points of growth this year from distribution. And largely, it's those types of distribution.

我們還與現有的零售商一起擴張。因此，在北美，隨著 Ulta 和絲芙蘭開新店或任何其他零售商開新店，我們也考慮在這些商店擴張，但從實體店的角度來看，不會過度零售。這是一種擴展——在分佈方面的擴展。因此，如果我們的零售商今年開了 20 扇新門，我們將與他們一起打開這些門。因此，我們將其包含在我們的發行版中。我想我在準備好的講話中說過，我們預計今年的分銷增長約為 2 個百分點。在很大程度上，它是那些類型的分佈。

Fabrizio talked as well about pure plays. Pure plays have been a fantastic way for us to actually -- selective pure plays. We're very selective -- to actually reach new consumers, in particular, younger consumers and -- who are shopping more online and maybe shopping on an apparel site online that we have an opportunity to introduce beauty products to and get a new consumer as well as a new shopping occasion as they're shopping for their apparel products. So it's a very thoughtful way that we think about distribution and expanding distribution right now really to focus on reaching new consumers.

Fabrizio 也談到了純粹的戲劇。對我們來說，純粹的戲劇實際上是一種極好的方式——選擇性的純粹戲劇。我們非常挑剔——真正接觸到新消費者，尤其是年輕消費者——他們在網上購物的頻率更高，並且可能在服裝網站上購物，我們有機會向他們介紹美容產品並吸引新消費者以及一個新的購物場合，因為他們正在購買他們的服裝產品。所以這是一種非常深思熟慮的方式，我們現在考慮分銷和擴大分銷，真正專注於接觸新消費者。

We have time for one more question from Andrea Teixeira of JPMorgan.

我們有時間再回答摩根大通的 Andrea Teixeira 的一個問題。

So my question is on the cadence of the quarter, of your guidance within the quarter. Besides Hainan consumers are more cautious to travel, you mentioned retail inventory, if I'm not mistaken. I wonder if you're embedding some adjustment to [retained employees] in Q1? And if so, the magnitude of that impact that would give us more confidence on the recovery for the remaining 9 months. And just a clarification on how much you expect sales to decline in China, including Hainan, in Q1, embedded in your guidance.

所以我的問題是關於本季度的節奏，以及您在本季度的指導。除了海南消費者對旅行更加謹慎之外，如果我沒記錯的話，你提到了零售庫存。我想知道您是否在第一季度對[留用員工]進行了一些調整？如果是這樣，這種影響的規模將使我們對剩餘 9 個月的複蘇更有信心。並且只是澄清了您預計第一季度中國（包括海南）的銷售額將下降多少，並包含在您的指導中。

Yes. So I'll start with the last, Andrea. We don't give specific market information. So it's embedded in our guidance. You can certainly -- as you -- if you think about what we have said previously in terms of the size of those businesses, you can probably back into a little bit in terms of what that impact would be.

是的。所以我將從最後一個開始，安德里亞。我們不提供具體的市場信息。所以它嵌入在我們的指導中。你當然可以——就像你一樣——如果你考慮一下我們之前在這些企業的規模方面所說的話，你可能會回想一下這種影響會是什麼。

In terms of the retail inventory situation, we do expect that to improve in the second quarter. That was very specific to the U.S., actually, the Americas, but specific to the U.S. And we do expect that to improve in the second quarter as the holiday season approaches. And we do ship those holiday sets in Q2 that we shipped last year in Q1.

就零售庫存情況而言，我們確實預計第二季度會有所改善。這對美國來說是非常具體的，實際上是美洲，但對美國來說是具體的。我們確實預計隨著假期的臨近，第二季度情況會有所改善。我們確實在去年第一季度發貨的第二季度發貨。

I think the other part of the question was Hainan. And in Hainan in this moment, they're not ordering. So there is no inventory sold, but they are -- still, what they are selling, they're selling from existing inventory. So there is -- there will be the possibility in the future to rebuild and normalize inventories when COVID abates.

我認為問題的另一部分是海南。而此時在海南，他們沒有點餐。所以沒有銷售庫存，但他們仍然 - 他們正在銷售的東西，他們是從現有庫存中銷售的。因此，當COVID減弱時，將來有可能重建庫存並使庫存正常化。

And the only other thing I would add, and you didn't ask about this, but currency. So as you saw in our guidance, currency is a big impact for us this year. Obviously, if currency rates change, that will improve. But right now, if currency rates remain where they're at, and hopefully won't get worse, then about 70% of the impact of currency, the year-over-year impact of the currency depreciation that we've experienced, is in the first half. So that should moderate.

我要補充的唯一另一件事，你沒有問這個，而是貨幣。因此，正如您在我們的指導中看到的那樣，貨幣對我們今年的影響很大。顯然，如果匯率發生變化，情況會有所改善。但是現在，如果貨幣匯率保持在原來的水平，並且希望不會變得更糟，那麼大約 70% 的貨幣影響，即我們所經歷的貨幣貶值的同比影響，是在上半場。所以應該適度。

We really saw the currency depreciation beginning in the currencies that I mentioned that are the most impactful to us in the second half of our year, really starting in the March, April time frame. So we'll be anniversarying that in the second half. So again, as I mentioned, it's a bit of a tale of 2 halves and given some of the macro things that are impacting us in this fiscal year.

我們確實看到貨幣貶值始於我提到的對我們影響最大的貨幣在今年下半年，實際上是從 3 月、4 月的時間框架開始。所以我們將在下半年紀念這一點。因此，正如我所提到的，這有點像兩半的故事，並且考慮到本財年影響我們的一些宏觀事情。

That concludes today's question-and-answer session. If you were unable to join for the entire call, a playback will be available at 1 p.m. Eastern Time today through September 1. To hear a recording of the call, please dial (877) 344-7529, pass code 3602158.

今天的問答環節到此結束。如果您無法加入整個通話，則可以在下午 1 點播放。東部時間今天到 9 月 1 日。要收聽電話錄音，請撥打 (877) 344-7529，密碼 3602158。

That concludes today's Estée Lauder conference call. I would like to thank you all for your participation and wish you all a good day. You may now disconnect.

今天的雅詩蘭黛電話會議到此結束。我要感謝大家的參與，祝大家有個美好的一天。您現在可以斷開連接。