雅詩蘭黛 (EL) 2023 Q4 法說會逐字稿

Good day, everyone, and welcome to The Estee Lauder Company's Fiscal 2023 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 2023 財年第四季度和全年電話會議。今天的通話正在錄音並進行網絡直播。

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

對於開場白和介紹，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。出席今天電話會議的有總裁兼首席執行官 Fabrizio Freda；特雷西·特拉維斯（Tracey Travis），執行副總裁兼首席財務官。

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 impacts of acquisitions, divestitures, brand closures and the impact of foreign currency translation. You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website.

由於我們今天的許多言論都包含前瞻性陳述，因此請您參閱我們的新聞稿和向美國證券交易委員會提交的報告，您會發現可能導致實際結果與這些前瞻性陳述存在重大差異的因素。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進行的。除非另有說明，所有有機淨銷售額增長也不包括收購、剝離、品牌關閉的不可比影響以及外幣換算的影響。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 指標之間的調節表。

As a reminder, references to online sales include sales we make directly to our consumers through brand.com sites and through third-party platforms. It also includes estimated sales of products through our retailers' websites. (Operator Instructions)

提醒一下，在線銷售包括我們通過 Brand.com 網站和第三方平台直接向消費​​者進行的銷售。它還包括通過我們的零售商網站估計的產品銷售額。 （操作員說明）

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

現在，我將把電話轉給法布里齊奧。

Thank you, Rainey, and hello to everyone. We appreciate you joining us to discuss our fiscal year 2023 results and outlook.

謝謝你，雷尼，大家好。感謝您與我們一起討論我們 2023 財年的業績和展望。

Let me begin with the fourth quarter. We delivered an organic sales increase of 4%, achieving a return to growth for the quarter as expected. Momentum continued in the markets of EMEA and Latin America and accelerated in Asia Pacific, where organic sales growth improved from 7% in the third quarter to 36% in the fourth quarter, led by Mainland China and Hong Kong SAR.

讓我從第四季度開始。我們的有機銷售額增長了 4%，本季度實現了預期的增長恢復。歐洲、中東和非洲和拉丁美洲市場的勢頭持續，亞太地區的增長勢頭加快，在中國大陸和香港特別行政區的帶動下，有機銷售額增長從第三季度的7% 提高到第四季度的36% 。

Looking at the full year, while demand for our business is still strong, with retail sales growth up mid-single digit globally, organic sales declined 6%. We delivered impressive double-digit growth in the markets of EMEA and return to growth in Asia Pacific, while the Americas held steady. These gains across the markets of EMEA and Asia Pacific were more than offset by Asia travel retail, given the prolonged and complex recovery from the pandemic, as we have discussed in our previous earning calls. Indeed, our global travel retail business decreased 34% organically in fiscal year 2023, solely driven by Asia travel retail. Our travel retail business in EMEA and the Americas soared, and our investment in activation and in-store Beauty Advisor drove strong performance as passenger traffic increased. The rest of our business in total rose 5% organically as growth accelerated from 10% in the third quarter to 17% in the fourth quarter.

縱觀全年，雖然我們的業務需求依然強勁，全球零售額增長達到中個位數，但有機銷售額卻下降了 6%。我們在歐洲、中東和非洲市場實現了令人印象深刻的兩位數增長，並在亞太地區恢復增長，而美洲保持穩定。正如我們在之前的財報電話會議中所討論的那樣，鑑於大流行的複蘇過程漫長而復雜，歐洲、中東和非洲和亞太地區市場的這些收益被亞洲旅遊零售所抵消。事實上，我們的全球旅遊零售業務在 2023 財年有機下降了 34%，這完全是由亞洲旅遊零售推動的。我們在歐洲、中東和非洲和美洲的旅遊零售業務飆升，隨著客流量的增加，我們對激活和店內美容顧問的投資推動了強勁的業績。我們的其餘業務總體有機增長了 5%，增速從第三季度的 10% 加速到第四季度的 17%。

The challenges in Asia travel retail disproportionately pressured Skin Care, which is our highest margins category. Compounding matters, the leverage was pronounced as the lower level of sales coincided with elevated strategic investment in manufacturing and R&D capabilities as well as information technology for our online business, and to support our expanding supply chain globally. All told, our adjusted operating margin contracted meaningfully in fiscal year 2023 to 11.4%, modestly better than we expected in the revised outlook we offered in May.

亞洲旅遊零售業面臨的挑戰給我們利潤率最高的護膚品類帶來了不成比例的壓力。雪上加霜的是，由於銷售水平較低，同時我們對製造和研發能力以及在線業務的信息技術以及支持我們在全球範圍內不斷擴大的供應鏈的戰略投資增加，槓桿作用也很明顯。總而言之，我們調整後的營業利潤率在 2023 財年大幅收縮至 11.4%，略好於我們在 5 月份提出的修訂後前景中的預期。

During fiscal year 2023, we continue to make progress on our sustainability goals and commitments. For our packaging goals, for instance, we have now advanced from 51% of our packaging being recyclable, refillable, reusable, recycled or recoverable in fiscal year '19 to over 70% in fiscal year 2023. As well, we are on track to maintain our status of 100% renewable electricity and Scope 1 and Scope 2 carbon neutrality. We are proud to have been recognized by CDP for our continued commitment to disclose our environmental impact as reflected in our CDP climate, water and forest disclosure scores for 2022. Most notably, we achieved an A- for our climate change disclosures and we earned a place in the prestigious A List for water, improving our score over 2021.

2023 財年，我們繼續在可持續發展目標和承諾方面取得進展。例如，對於我們的包裝目標，我們現在已將 19 財年 51% 的包裝可回收、可再填充、可重複使用、回收或可回收提高到 2023 財年的 70% 以上。保持100% 可再生電力以及範圍1 和範圍2 碳中和的狀態。我們很自豪能夠獲得CDP 的認可，因為我們持續致力於披露我們的環境影響，這反映在我們的2022 年CDP 氣候、水和森林披露分數中。最值得注意的是，我們的氣候變化披露獲得了A-，並獲得了躋身享有盛譽的水 A 級榜單，2021 年我們的得分有所提高。

Looking ahead, for Asia travel retail, the pressure in Hainan intensified over the course of the fourth quarter. In May and June, retail sales trends deteriorated and turned steeply negative, following the enforcement actions to control Daigou activity. The implication of these are favorable for sustainable long-term growth, but certainly create significant short-term headwinds through the transition.

展望未來，對於亞洲旅遊零售而言，第四季度海南的壓力將會加劇。 5 月和 6 月，在控制代購活動的執法行動之後，零售銷售趨勢惡化並急劇下滑。這些影響有利於可持續的長期增長，但肯定會在轉型過程中產生重大的短期阻力。

As we embark on fiscal year 2024, we have 4 strategic imperatives: drive momentum where our business is thriving, reaccelerate growth in the United States, capture demand for the returning individual traveler in Asia travel retail and begin to rebuild our profitability. For fiscal year 2024, we expect to return to full year organic sales growth and margin expansion, with organic sales rising 6% to 8% and adjusted operating margin improving sequentially throughout the year. Our fiscal year 2024 action plan, where we expect to again increase our investment in advertising as a percentage of sales, will also set the stage for a stronger fiscal year 2025 acceleration.

在踏入2024 財年之際，我們有4 項戰略要務：推動我們業務蓬勃發展的勢頭，重新加速美國的增長，抓住亞洲旅遊零售業回國個人旅行者的需求，並開始重建我們的盈利能力。對於 2024 財年，我們預計將恢復全年有機銷售增長和利潤率擴張，全年有機銷售額增長 6% 至 8%，調整後的營業利潤率將連續改善。我們的 2024 財年行動計劃預計將再次增加廣告投資佔銷售額的比例，這也將為 2025 財年更強勁的加速奠定基礎。

One of our greatest strengths to leverage in our return to top and bottom line growth is our diverse portfolio of nearly 25 brands. Sitting at the top are our $4 billion-plus brands of Clinique, Estee Lauder, La Mer and M·A·C, each a winner in its own right. M·A·C, the world's biggest prestige makeup brand, was our best-performing brand across the entire portfolio in fiscal year 2023. It's unrivaled artistry, hero product, strong media value ranking and breakthrough innovation of the Hyper Real franchise in Skin Care drove excellent results. For fiscal year 2024, the brand is on the cusp of the big launch in makeup as M·A·C aims to extend its winning streak in innovation. Indeed, all our billion-dollar plus brands have exciting newness ahead in both product and commercial innovation as they leverage their brand equity, scale and omnichannel beauty advisers.

我們恢復收入和利潤增長的最大優勢之一是我們擁有近 25 個品牌的多元化產品組合。位居榜首的是我們價值超過40 億美元的品牌：倩碧(Clinique)、雅詩蘭黛(Estee Lauder)、海藍之謎(La Mer) 和瑪雅C (M·A·C)，每個品牌都憑藉自己的實力成為贏家。 M·A·C 是全球最大的知名彩妝品牌，是我們2023 財年整個產品組合中表現最佳的品牌。它具有無與倫比的藝術性、英雄產品、強大的媒體價值排名以及Hyper Real 護膚系列的突破性創新取得了優異的成績。 2024 財年，該品牌即將推出彩妝產品，M·A·C 旨在延續其創新連勝。事實上，我們所有價值超過十億美元的品牌都利用其品牌資產、規模和全渠道美容顧問，在產品和商業創新方面都呈現出令人興奮的新變化。

Clinique, the #1 prestige skin care brand in the U.S., pioneered dermatologist-developed products when it was founded in 1968. The brand is deepening its connections with dermatologists, adding powerful, instant and dermatologist-level claims, doubling down in its unique safety philosophy and activating more derm education on TikTok. And later this month, Clinique will elevate its equity in the aging with a breakthrough launch of Smart Clinical Repair lifting face and neck cream, a new dermatologist-tested formula.

倩碧(Clinique) 是美國排名第一的知名護膚品牌，於1968 年成立時率先開發了皮膚科醫生開發的產品。該品牌正在加深與皮膚科醫生的聯繫，添加強大、即時和皮膚科醫生級別的聲稱，加倍其獨特的安全性理念並在 TikTok 上激活更多皮膚教育。本月晚些時候，倩碧將突破性地推出經過皮膚科醫生測試的全新配方——智能臨床修復提升面部和頸部霜，以提高其在抗衰老領域的競爭力。

Estee Lauder, among the biggest prestige brands globally, is extending its world-renowned Advanced Night Repair franchise with the launch of Rescue Solution for sensitive skin, and the brand's luxury oriented Re-Nutriv franchise has a rich innovation program across Makeup and Skin Care.

全球最大的知名品牌之一的雅詩蘭黛(Estee Lauder) 正在擴展其世界知名的高級夜間修護系列產品，推出針對敏感肌膚的救援解決方案，而該品牌面向奢華的Re-Nutriv 系列產品在彩妝和護膚領域擁有豐富的創新計劃。

La Mer, the global leader in luxury skin care grew, double digits in Asia Pacific in fiscal year 2023 and aims to accelerate its growth with the upcoming launch of the Lifting and Firming Serum. This launch capitalizes on La Mer's successfully upgraded moisturizer soft cream as both bring advanced benefit in anti-aging efficacy. Moreover, La Mer is introducing new regimens focused on the power of its iconic Miracle Broth to capitalize on the trend of night regimens.

全球奢華護膚品領導者 La Mer 在 2023 財年在亞太地區實現了兩位數增長，併計劃通過即將推出的緊緻精華液加速其增長。此次推出充分利用了 La Mer 成功升級的保濕軟霜，因為兩者都具有先進的抗衰老功效。此外，La Mer 正在推出新的養生方案，重點關注其標誌性的 Miracle Broth 的功效，以順應夜間養生的趨勢。

In fiscal year 2024, this esteemed tier of $1 billion-plus brands is set to expand its breadth count by 50% as we expect Jo Malone London and TOM FORD to cross the sales threshold. These 2 brands have excelled over the last decade and are ideally positioned for the next decade, given their positioning in the fast-growing segment of luxury and artisanal fragrance.

到 2024 財年，隨著我們預計 Jo Malone London 和 TOM FORD 將跨越銷售門檻，這一價值超過 10 億美元的品牌的廣度數量將擴大 50%。這兩個品牌在過去十年中表現出色，並且鑑於其在快速增長的奢侈品和手工香水領域的定位，在未來十年中處於理想的地位。

For TOM FORD, which epitomized luxury glamor, fiscal year 2023 was momentum. We are thrilled to have acquired the brand after having collaborated to create TOM FORD for over 15 years. This acquisition is a central building block to realize our aspirations in high-growth luxury (inaudible) beauty. Moreover, the brand sales rose strong double digits organically in Fragrance for the fiscal year. The breadth of this performance was stunning as over 30 markets grew double digits. The strength of its hero products and innovation proven a powerful combination with new and existing consumers. And Tom Ford enticing Café Rose launched to begin fiscal year 2024. In makeup, TOM FORD delivered double-digit organic sales growth in Asia Pacific and the markets in EMEA, driven by excellent performance in Lips.

對於體現奢華魅力的 TOM FORD 來說，2023 財年充滿動力。我們很高興在合作創建 TOM FORD 超過 15 年之後收購了該品牌。此次收購是實現我們對高增長奢華（聽不清）美容的願望的核心基石。此外，本財年香水品牌銷售額有機增長兩位數。這種表現的廣度令人驚嘆，超過 30 個市場實現了兩位數的增長。事實證明，其英雄產品的實力和創新與新老消費者的強大結合。 Tom Ford 誘人的 Café Rose 將於 2024 財年開始推出。在彩妝領域，在 Lips 的出色表現的推動下，TOM FORD 在亞太地區和歐洲、中東和非洲市場實現了兩位數的有機銷售增長。

Among our other scaling brands, or those with sales between $500 million and $1 billion, we are encouraged by their progress in fiscal year 2023. For Bobbi Brown Cosmetics, the brand continued to complement its expanding makeup business with strong growth in skin care, while Aveda executed on its global ambition with the successful launch in Mainland China. The Ordinary graduated into our tier scale brands as double-digit sales growth propelled it well above $500 million. The brand's list of achievements for the year is long indeed, from success in its hero product to a step change in the contribution to sales from innovation to doubling its TikTok followers to strong share gains in prestige skin care in the U.S. and Western Europe. The Ordinary proved its high-performance, ingredient-led products are well loved, and we believe it is just getting started in realizing its global potential.

在我們其他規模擴大的品牌中，或者那些銷售額在5 億至10 億美元之間的品牌中，我們對它們在2023 財年取得的進展感到鼓舞。對於Bobbi Brown Cosmetics，該品牌繼續通過護膚品的強勁增長來補充其不斷擴大的彩妝業務，而Aveda 在中國大陸的成功推出，實現了其全球雄心。隨著兩位數的銷售額增長推動其遠遠超過 5 億美元，Ordinary 逐漸成為我們的一線品牌。該品牌今年取得的成就確實很長，從其英雄產品的成功，到銷售貢獻的逐步變化，從創新到將 TikTok 粉絲增加一倍，再到在美國和西歐的高端護膚品市場份額的強勁增長。 The Ordinary 證明了其高性能、以成分為主導的產品深受喜愛，我們相信它在實現其全球潛力方面才剛剛開始。

Looking across our developing brands, in which we strategically invest to realize the scaling brands of the future, Le Labo, KILIAN PARIS and Editions de Parfums Frederic Malle each achieved double-digit organic sales growth in fiscal year 2023 to continue their winning streaks. Impressively, over the last 5 years, these 3 brands have delivered over 30% compound annual growth, demonstrating brand-building acumen. At this time next year, we will be on the verge of launching BALMAIN BEAUTY, with the namesake luxury fashion house. Our collaboration with BALMAIN has been exceptional, and we cannot wait to introduce this new luxury beauty brand to the world.

縱觀我們的發展中品牌，我們對這些品牌進行了戰略投資，以實現未來的規模化品牌，Le Labo、KILIAN PARIS 和Editions de Parfums Frederic Malle 均在2023 財年實現了兩位數的有機銷售額增長，延續了連胜勢頭。令人印象深刻的是，在過去5年裡，這3個品牌的年復合增長率超過30%，展現了品牌建設的敏銳性。明年這個時候，我們即將推出 BALMAIN BEAUTY 與同名奢華時裝品牌。我們與 BALMAIN 的合作非常出色，我們迫不及待地想向世界介紹這個新的奢華美容品牌。

For our brand portfolio, we have positioned ourselves to take advantage of the efficiency and the effectiveness that will be enabled by generative AI. Furthermore, creating high-quality, high-performing products is in our DNA. Innovation has long served as a catalyst for growth. It once again represented over 25% of our sales in fiscal year 2023. We have a rich pipeline of newness 2146 slated for fiscal year 2024, and it gets even bigger and stronger in fiscal year 2025 with more breakthrough innovation and expansion into white space opportunities.

對於我們的品牌組合，我們將自己定位為利用生成人工智能帶來的效率和有效性。此外，創造高質量、高性能的產品是我們的基因。長期以來，創新一直是增長的催化劑。它再次占我們 2023 財年銷售額的 25% 以上。我們計劃在 2024 財年推出豐富的新產品 2146，並在 2025 財年通過更多突破性創新和拓展空白機會變得更大更強。 。

Over the last few years, aligned with our innovation strategy, we have significantly increased the breadth, depth and diversity of our clinical studies for new and legacy products across categories to deliver impactful claims. This work, combined with our newly opened China innovation labs in Shanghai, equips us with even greater capabilities to drive growth with consumers locally and around the world.

在過去的幾年裡，根據我們的創新戰略，我們顯著增加了跨類別新產品和傳統產品臨床研究的廣度、深度和多樣性，以提供有影響力的主張。這項工作與我們在上海新開設的中國創新實驗室相結合，使我們具備了更大的能力來推動本地和全球消費者的增長。

For Skin Care, we have also significantly increased our scientific credential, demonstrated by an 85% increase in scientific advisory Board members and third-party dermatologists and academic partners in the last 2 years. Last month, at the World Congress of Dermatology in Singapore, we presented several studies for Clinique, Estee Lauder and La Mer. This was a milestone moment for Estee Lauder's Re-Nutriv franchise as our scientists unveiled our newness breakthrough longevity age reversal research on a global stage. Re-Nutriv has been and continue to be a pioneer in this frontier of skin biology, and we'll extend upon the recent success of Ultimate Diamond Transformative Brilliance Serum with compelling innovation this fiscal year.

在皮膚護理方面，我們還顯著提高了我們的科學資質，過去 2 年科學顧問委員會成員、第三方皮膚科醫生和學術合作夥伴數量增加了 85%，這證明了我們的科學資質。上個月，在新加坡舉行的世界皮膚病學大會上，我們展示了倩碧、雅詩蘭黛和海藍之謎的幾項研究。這是雅詩蘭黛 Re-Nutriv 系列的一個里程碑時刻，我們的科學家在全球舞台上公佈了我們突破性的長壽逆轉研究。 Re-Nutriv 一直並將繼續成為皮膚生物學領域的先驅，我們將在本財年以引人注目的創新延續 Ultimate Diamond Transformative Brilliance Serum 最近取得的成功。

As we rebuild the challenges of fiscal year 2023, we expect to leverage and stand upon these trends as we drive resilient growth. The opportunity ahead of us is significant, as over 900 million people are expected to enter the middle class to 2030 and drive consumption as they seek the high-quality, strong efficacy and joy that prestige beauty affords. Our company has great confidence in the long-term development of China, and we are proud of the very strong business we have built, led by our exceptional local team. The Chinese consumers continue to be the unrivaled #1 growth drivers of our industry throughout the decade. We are pleased to have returned to organic sales growth in Mainland China this fiscal year 2023 and to have expanded our prestige beauty share as the market gradually evolves in its recovery from the pandemic.

當我們重新面對 2023 財年的挑戰時，我們預計將利用並抓住這些趨勢，推動彈性增長。我們面臨著巨大的機遇，預計到 2030 年，將有超過 9 億人進入中產階級，並推動消費，因為他們尋求高端美容所帶來的高品質、強功效和愉悅感。我們公司對中國的長期發展充滿信心，我們為我們在優秀的本地團隊領導下建立的強大業務感到自豪。十年來，中國消費者仍然是我們行業無與倫比的第一增長動力。我們很高興在 2023 財年中國大陸的銷售恢復了有機增長，並隨著市場從疫情中逐漸復蘇而擴大了我們的高端美容市場份額。

Impressively, Mainland China's fourth quarter organic sales were up double digit compared to both 1 and 2 years ago, and we further expanded our prestige beauty share in the quarter. We made significant long-term investment in the market across fiscal year 2023. Beyond the opening of the China innovation lab in Shanghai and a new distribution center in Guangzhou, we launched Aveda to start the year and Le Labo to end the year. Aveda quickly captured up the ranks of prestige hair care, driven in part by its focus on the skinification of hair and high-performance product for scalp care. Le Labo initial freestanding store in Shanghai redefines experiential shopping, which makes it no surprise that it was the brand's top performing store in the world in the month of June.

令人印象深刻的是，與一年前和兩年前相比，中國大陸第四季度的有機銷售額增長了兩位數，並且我們在該季度進一步擴大了我們的高端美容份額。我們在 2023 財年對市場進行了重大的長期投資。除了在上海開設中國創新實驗室和在廣州開設新的配送中心之外，我們還在年初推出了 Aveda，在年底推出了 Le Labo。 Aveda 迅速躋身高端護髮產品行列，部分原因是其專注於頭髮皮膚化和高性能頭皮護理產品。 Le Labo 在上海的首家獨立店重新定義了體驗式購物，毫不奇怪，它成為該品牌 6 月份全球表現最好的商店。

We also invested in the vibrant opportunity in both brick-and-mortar and online, opening in 7 new cities, expanding our online reach with Douyin and creating exceptional live streaming content which, as you know, is a game changer to excel in the market. Our online ecosystem continues to move from strength to strength across social and commerce, encompassing Tmall, JD, WeChat, Red and Douyin among others, driving our share gains for the fiscal quarter and year.

我們還投資了實體店和線上的充滿活力的機會，在7 個新城市開設了門店，通過抖音擴大了我們的在線覆蓋範圍，並創造了卓越的直播內容，如您所知，這將改變遊戲規則，在市場上脫穎而出。我們的在線生態系統在社交和商業領域不斷發展壯大，包括天貓、京東、微信、小紅書和抖音等，推動了我們在本財季和本財年的份額增長。

Online in Mainland China performed exceptionally well every month in the fourth quarter to realize over 60% organic sales growth and expand online prestige beauty share by 2 points, owning to innovation, gifting campaigns and excellent execution. We capped the quarter success on 618 where our brand strength was broad-based. Estee Lauder ranked #1 in store live streaming prestige beauty on both Tmall and Douyin, La Mer ranked the #1 in luxe beauty on Tmall for the third consecutive year, and Jo Malone London took the top spot on Tmall and JD for luxe fragrances.

憑藉創新、禮品活動和出色的執行力，中國大陸線上渠道在第四季度每個月都表現異常出色，實現了超過60% 的有機銷售增長，並將線上高端美容份額擴大了2 個百分點。我們在 618 上取得了季度成功，我們的品牌實力基礎廣泛。雅詩蘭黛(Estee Lauder) 在天貓和抖音的實體店直播高端美妝品類中排名第一，海藍之謎(La Mer) 連續第三年在天貓的奢華美妝品類中排名第一，Jo Malone London 在天貓和京東的奢華香水品類中排名第一。

From an organizational standpoint, Mainland China and China travel retail have enhanced their capabilities for local coordination of go-to-market strategies and plans to maximize long-term value and support brand equity. The expected growth of the middle class around the world is exciting implication of our business, given also our vibrant emerging market portfolio. Indeed, in fiscal year 2023, our emerging markets delivered organic sales growth of 20% led by India, Brazil, Turkey and Thailand. India grew nearly 50% for the year, driven by excellent performance by our long-standing brands in the market and the very successful launch of The Ordinary.

從組織角度來看，中國大陸和中國旅遊零售業已增強了當地協調市場策略的能力，併計劃實現長期價值最大化並支持品牌資產。考慮到我們充滿活力的新興市場投資組合，全球中產階級的預期增長對我們的業務來說是令人興奮的。事實上，在 2023 財年，我們的新興市場實現了 20% 的有機銷售增長，其中印度、巴西、土耳其和泰國領先。得益於我們在市場上的長期品牌的出色表現以及 The Ordinary 的成功推出，印度市場今年增長了近 50%。

In North America, we are focused on reaccelerating growth to better capture prestige beauty opportunities in the region. Our multi-facet strategy plan includes launching a robust innovation pipeline, increasing engagement by brands on TikTok, accentuating our strength in luxury and artisanal fragrance and high-performance, ingredient-led skin care, and expand the brand reach in specialty-multi among other initiatives. And we are excited to extend our reach online as The Ordinary and Estee Lauder are soon to launch on TikTok Shop.

在北美，我們致力於重新加速增長，以更好地抓住該地區的高端美容機會。我們的多方面戰略計劃包括啟動強大的創新渠道、提高品牌在TikTok 上的參與度、強調我們在奢華和手工香水以及高性能、以成分為主導的護膚品方面的實力，並擴大在專業多用途等領域的品牌影響力倡議。我們很高興能夠擴大我們的在線影響力，因為 The Ordinary 和雅詩蘭黛即將在 TikTok 商店上推出。

Let me now turn to our profitability. We have identified 4 building blocks to progressively expand adjusted operating margin over the next few years. First, we are focused on optimizing mix by elevating luxury across brands, driven by consumer preferences, by expanding our direct-to-consumer ecosystem across brick-and-mortar and online. Second, we see many opportunities to maximize value through better price realization and accretive innovation. Third, we intend to increasingly leverage the strategic investment we have made over the last few years, most notably our new manufacturing facility in Japan and expanded online capabilities. Last, we believe we can unlock meaningful cost efficiencies in our value chain as we complete the rollout and adoption of our new integrated business planning process across the global operation and use generative AI to drive efficiencies.

現在讓我談談我們的盈利能力。我們已經確定了 4 個構建模塊，以在未來幾年內逐步擴大調整後的營業利潤率。首先，我們致力於在消費者偏好的驅動下，通過在實體店和線上擴展我們的直接面向消費者的生態系統，提升跨品牌的奢華度，從而優化產品組合。其次，我們看到了許多通過更好的價格實現和增值創新來實現價值最大化的機會。第三，我們打算更多地利用過去幾年進行的戰略投資，尤其是我們在日本的新製造工廠和擴大的在線能力。最後，我們相信，隨著我們在全球運營中完成新的集成業務規劃流程的推出和採用，並使用生成式人工智能來提高效率，我們可以在價值鏈中實現有意義的成本效率。

In closing, while we had a challenging year, we remain confident in our long-term strategy to realize the promising growth opportunity in global prestige beauty with our diversified portfolio brands, robust research development capability and global reach. We are encouraged by the fundamental strength of our business in the markets of EMEA, Asia Pacific, Latin America, and are focused on our plans to recover growth in Asia travel retail and North America.

最後，雖然我們度過了充滿挑戰的一年，但我們對我們的長期戰略充滿信心，通過我們多元化的品牌組合、強大的研發能力和全球影響力，實現全球高端美容領域充滿希望的增長機會。我們對歐洲、中東和非洲、亞太地區、拉丁美洲市場業務的基本實力感到鼓舞，並專注於恢復亞洲旅遊零售和北美增長的計劃。

For fiscal year 2024, we believe we are well positioned to return to organic sales growth and improve profitability. To our employees, you are the heart and the soul of our beautiful company, and I extend my deepest gratitude to your exceptional contribution and dedication.

對於 2024 財年，我們相信我們已做好充分準備，能夠恢復有機銷售增長並提高盈利能力。對於我們的員工來說，你們是我們美麗公司的心臟和靈魂，我對你們的傑出貢獻和奉獻表示最深切的感謝。

And now, I will turn the call over to Tracey.

現在，我將把電話轉給特蕾西。

Thank you, Fabrizio, and hello, everyone. While we certainly had many successes this past fiscal year, as you just heard, we are not satisfied with our fiscal 2023 financial results and are executing on our strategy to progressively rebuild the margin accretive areas of our business over the next few years, and leverage the investments we have made in manufacturing, distribution and technology capabilities. I will further address our plans when I discuss our fiscal 2024 outlook, but first, I will cover the fiscal 2023 fourth quarter and full year results.

謝謝法布里齊奧，大家好。雖然我們在過去的財年確實取得了許多成功，但正如您剛剛聽到的那樣，我們對2023 財年的財務業績並不滿意，並且正在執行我們的戰略，以在未來幾年內逐步重建我們業務的利潤增長領域，並利用我們在製造、分銷和技術能力方面進行的投資。當我討論 2024 財年展望時，我將進一步討論我們的計劃，但首先，我將介紹 2023 財年第四季度和全年業績。

Our fourth quarter organic net sales increased 4% and earnings per share was $0.07. From a geographic standpoint, organic net sales grew in nearly all markets in both Asia Pacific and EMEA. This strong performance was partially offset by the ongoing challenges in our Asia travel retail business as we expected. Organic net sales in Asia Pacific rose 36%, reflecting double-digit growth in most markets, led by Mainland China and Hong Kong SAR, as they continue to progress in recovery with fewer COVID-related restrictions compared to the prior year. They also benefited from our successful brand innovations, new product launches, activation consumer -- of consumers and targeted consumer reach. In Mainland China, online realized over 30% organic growth and achieved approximately 60% penetration of sales in the quarter.

我們第四季度的有機淨銷售額增長了 4%，每股收益為 0.07 美元。從地域角度來看，亞太地區和歐洲、中東和非洲地區幾乎所有市場的有機淨銷售額均出現增長。正如我們預期的那樣，亞洲旅遊零售業務持續面臨的挑戰部分抵消了這一強勁表現。亞太地區的有機淨銷售額增長了36%，反映出以中國大陸和香港特別行政區為首的大多數市場都實現了兩位數增長，因為與上一年相比，這些市場在與新冠病毒相關的限制較少的情況下繼續在復蘇中取得進展。他們還受益於我們成功的品牌創新、新產品發布、消費者激活和目標消費者覆蓋。在中國大陸，線上業務在本季度實現了超過 30% 的有機增長，並實現了約 60% 的銷售滲透率。

In EMEA, organic net sales decreased 15%. The growth in nearly all markets and channels of distribution was more than offset by the performance of our Asia travel retail business. In Hainan, retail sales declined more than we expected in the quarter for the reasons Fabrizio mentioned. Excluding our travel retail business, net sales in both Makeup and Fragrance rose double digits in the region, benefiting from our strategic investments in advertising and promotional activities and the reestablishment of services in our stores.

在歐洲、中東和非洲地區，有機淨銷售額下降了 15%。幾乎所有市場和分銷渠道的增長都被我們亞洲旅遊零售業務的業績所抵消。在海南，由於 Fabrizio 提到的原因，本季度零售額下降幅度超出了我們的預期。不包括我們的旅遊零售業務，化妝品和香水的淨銷售額在該地區增長了兩位數，這得益於我們對廣告和促銷活動的戰略投資以及商店服務的重建。

Organic net sales in the Americas were flat compared to last year. The strong double-digit increase in Latin America driven by the re-acceleration of makeup growth in Brazil and Mexico, was offset by the decline in the United States due to the slower-than-expected pace of improvement in retail sales of several of our brands. Standout performance from The Ordinary continues to be a bright spot in the region for the many reasons that Fabrizio mentioned earlier.

美洲的有機淨銷售額與去年持平。在巴西和墨西哥化妝品增長重新加速的推動下，拉丁美洲實現兩位數的強勁增長，但由於我們幾個國家的零售銷售改善速度慢於預期而導緻美國的下降所抵消。品牌。由於 Fabrizio 之前提到的許多原因，The Ordinary 的出色表現仍然是該地區的亮點。

From a product category perspective, Makeup organic net sales increased 13%, reflecting growth in each region led by Asia Pacific as recovery continued and usage occasions increased. M·A·C, Estee Lauder and TOM FORD drove growth, benefiting from investments in brand activations and increases in in-store staffing, the continued success of hero products as well as new product launches.

從產品類別的角度來看，彩妝有機淨銷售額增長了 13%，反映出隨著復甦的持續和使用場合的增加，以亞太地區為首的各地區的增長。 M·A·C、雅詩蘭黛和湯姆·福特推動了增長，得益於對品牌激活的投資和店內員工的增加、英雄產品的持續成功以及新產品的推出。

Fragrance organic net sales rose 12%, led by Le Labo and TOM FORD. Strong double-digit growth from Le Labo reflected increases in every region, momentum from our [City] exclusive special collection as well as growth from both existing and new points of distribution, including its expansion into Mainland China. The increase from TOM FORD was fueled by strategic investments in advertising and promotional activities to support key shopping moments and brand activations.

香水有機淨銷售額增長 12%，其中 Le Labo 和 TOM FORD 帶動增長。 Le Labo 強勁的兩位數增長反映了每個地區的增長、我們的 [City] 獨家特別系列的勢頭以及現有和新分銷點的增長，包括向中國大陸的擴張。 TOM FORD 的增長得益於對廣告和促銷活動的戰略投資，以支持關鍵購物時刻和品牌激活。

Organic net sales increased 6% in Hair Care and declined 3% in Skin Care. The pressures in our Asia travel retail business drove the Skin Care decline and were largely offset by the exceptional growth in the Asia Pacific region. La Mer and Estee Lauder declined, while The Ordinary, Bobbi Brown and M·A·C grew. M·A·C's growth was driven by the launch of the Hyper Real line of skin care products.

護髮產品的有機淨銷售額增長 6%，護膚產品的有機淨銷售額下降 3%。我們亞洲旅遊零售業務的壓力推動了護膚品業務的下滑，但在很大程度上被亞太地區的出色​​增長所抵消。海藍之謎 (La Mer) 和雅詩蘭黛 (Estee Lauder) 業績下滑，而 The Ordinary、芭比布朗 (Bobbi Brown) 和 M·A·C 則有所增長。 M·A·C 的增長得益於 Hyper Real 系列護膚產品的推出。

Our gross margin declined 330 basis points compared to last year. This decline primarily reflects the under-absorption of overhead in our plants due to the pull down of production throughout the year given our elevated inventory levels, as well as increased obsolescence charges. Operating expenses increased 70 basis points as a percent of sales, driven largely by the increase in advertising and promotional activities to support commercial activations in the quarter. Operating income declined 66% to $71 million, and our operating margin contracted 380 basis points to 2% in the quarter.

與去年相比，我們的毛利率下降了 330 個基點。這一下降主要反映了我們工廠的管理費用吸收不足，這是由於我們的庫存水平升高以及報廢費用增加導致全年產量下降。運營費用佔銷售額的百分比增加了 70 個基點，這主要是由於支持本季度商業活動的廣告和促銷活動的增加。本季度營業收入下降 66% 至 7100 萬美元，營業利潤率收縮 380 個基點至 2%。

Our effective tax rate for the quarter was a negative 17.9% compared to 14.2% last year due to a true-up in the quarter to reflect the final effective tax rate for the fiscal 2023 full year. Diluted EPS of $0.07 decreased 82% compared to last year. The impact from foreign currency translation and foreign currency transactions in key travel retail locations negatively impacted EPS by 7% and 9%, respectively.

由於本季度進行了調整以反映 2023 財年全年的最終有效稅率，本季度的有效稅率為負 17.9%，而去年為 14.2%。稀釋後每股收益為 0.07 美元，比去年下降 82%。主要旅遊零售地點的外幣換算和外幣交易的影響分別對每股收益產生了 7% 和 9% 的負面影響。

As we discussed in May, we completed the acquisition of the TOM FORD brand and the related intellectual property on April 28, paying approximately $2.3 billion. As a result of this acquisition, we entered into arrangements to license the TOM FORD trademark for eyewear to Marcolin and Fashion to Zegna, which were the brand's prior licensees, creating a new revenue stream for the company. This acquisition had a dilutive impact to EPS of $0.01, including interest expense on our debt financing and reflecting savings from royalties we no longer have to pay.

正如我們在 5 月份討論的那樣，我們於 4 月 28 日完成了對 TOM FORD 品牌及相關知識產權的收購，支付了約 23 億美元。通過此次收購，我們達成安排，將 TOM FORD 眼鏡商標授權給 Marcolin，將時尚品牌授權給 Zegna（該品牌之前的被授權人），為公司創造了新的收入來源。此次收購對 EPS 的攤薄影響為 0.01 美元，其中包括我們債務融資的利息支出以及我們不再需要支付的特許權使用費所節省的費用。

Shifting now to our full year results. This has certainly been a more volatile year than we anticipated. The challenges to our business in Asia travel retail and the United States as well as in the first half in Mainland China were partially offset by the progression of recovery everywhere else.

現在轉向我們的全年業績。今年無疑是比我們預期更加動蕩的一年。我們在亞洲旅遊零售和美國以及上半年中國大陸的業務所面臨的挑戰被其他地區的複蘇進程所部分抵消。

In Mainland China, we continue to gain share in all major product categories, demonstrating the strong demand for our products, although we remain conscious of the evolving economic conditions. And overall, our investments in brand activations, increased in-store staffing, distribution expansion and online capabilities aided in the acceleration of recovery of sales which largely occurred in brick-and-mortar channels, excluding travel retail. Net sales growth was strong in brick-and-mortar, particularly in our freestanding stores and with our specialty multi-retailers.

在中國大陸，儘管我們仍然意識到不斷變化的經濟狀況，但我們在所有主要產品類別中的份額繼續增加，這表明對我們產品的強勁需求。總體而言，我們在品牌激活、增加店內人員配備、分銷擴張和在線能力方面的投資有助於加速銷售復甦，這主要發生在實體渠道（不包括旅遊零售）。實體店的淨銷售額增長強勁，特別是在我們的獨立商店和我們的專業多元化零售商中。

Global travel retail represented 20% of our reported sales in fiscal 2023. And online net sales, which were flat, represented 29% of our reported sales. Organic net sales fell 6%, primarily reflecting the challenges in our Asia travel retail business, which drove the declines in our EMEA region of 16% and in Skin Care of 14%.

2023 財年，全球旅遊零售占我們報告銷售額的 20%。在線淨銷售額持平，占我們報告銷售額的 29%。有機淨銷售額下降 6%，主要反映了我們亞洲旅遊零售業務面臨的挑戰，導致歐洲、中東和非洲地區下降 16%，護膚品下降 14%。

Nearly all other domestic markets in EMEA grew double digits. In Asia Pacific, net sales rose 4% as markets continue to progress in recovery throughout the year and benefited from investments in advertising and promotional activities, innovation and distribution expansion. Net sales in the Americas was flat compared to last year.

歐洲、中東和非洲地區幾乎所有其他國內市場都實現了兩位數增長。在亞太地區，隨著市場全年繼續復甦，並受益於廣告和促銷活動、創新和分銷擴張的投資，淨銷售額增長了 4%。美洲的淨銷售額與去年持平。

Regarding categories, Fragrance net sales increased 14%, rising double digits in every geographic region and benefiting from the continued strength of hero products, successful innovation and distribution expansion, while Skin Care was more challenged in Asia travel retail and North America. Net sales grew 6% in Hair Care and was flat in Makeup.

就品類而言，香水淨銷售額增長14%，每個地理區域均實現兩位數增長，受益於主打產品的持續強勢、成功的創新和分銷擴張，而護膚品在亞洲旅遊零售和北美面臨更大的挑戰。護髮品類淨銷售額增長 6%，彩妝品類淨銷售額持平。

Our gross margin declined 440 basis points compared to last year, largely due to the slower-than-expected recovery in Asia travel retail. This includes higher obsolescence charges under-absorption of overhead in our plants due to the pull down of production throughout the year, given our higher inventory levels and less favorable category mix from our Skin Care mix.

與去年相比，我們的毛利率下降了 440 個基點，這主要是由於亞洲旅遊零售業的複蘇慢於預期。這包括由於我們的庫存水平較高和護膚品組合中不太有利的品類組合，全年產量下降，導致我們工廠的間接費用吸收不足，從而導致報廢費用增加。

Operating expenses increased 390 basis points to 59.9% of sales, driven primarily by the decline in sales. Despite the pressures to sales, we sustained our investments to support markets where recovery was evident, including in areas such as advertising, promotion, innovation and selling, which collectively increased by 280 basis points as a percent of sales. Operating income declined 48% to $1.8 billion from $3.5 billion last year, and our operating margin contracted 830 basis points to 11.4% for the full year.

運營費用增加了 390 個基點，佔銷售額的 59.9%，這主要是由於銷售額下降所致。儘管銷售面臨壓力，我們仍繼續投資以支持復甦明顯的市場，包括廣告、促銷、創新和銷售等領域，這些領域佔銷售額的百分比總共增長了 280 個基點。營業收入從去年的 35 億美元下降 48% 至 18 億美元，全年營業利潤率收縮 830 個基點至 11.4%。

In spite of the challenges that materially impacted our top line growth, we continued certain of our strategic investments important to support recovery and drive long-term sales growth and profitability. Our effective tax rate for the year was 26.5% compared to 21.3% last year, primarily reflecting the change in our geographical mix of earnings. Net sales declined 53% to $1.2 billion, and diluted EPS of $3.46 decreased 52% compared to last year, including the dilutive impacts from foreign currency translation and foreign currency transactions in key retail -- travel retail locations of 4% each. The acquisition of the TOM FORD brand was dilutive to EPS by $0.01.

儘管面臨的挑戰對我們的營收增長產生了重大影響，但我們繼續進行某些對支持復甦和推動長期銷售增長和盈利能力非常重要的戰略投資。我們今年的有效稅率為 26.5%，而去年為 21.3%，主要反映了我們收入地域結構的變化。淨銷售額下降53%，至12 億美元，稀釋後每股收益為3.46 美元，與去年相比下降52%，其中包括主要零售（旅遊零售地點）的外幣換算和外幣交易的攤薄影響，各佔4%。收購 TOM FORD 品牌攤薄了 EPS 0.01 美元。

Now turning to our cash flows for the fiscal year. We generated $1.7 billion in net cash flows from operating activities compared to $3 billion last year. The decrease reflects lower net income, partially offset by lower working capital. We invested $1 billion in capital expenditures for supply chain enhancements including our new manufacturing facility in Japan, consumer-facing capital such as distribution expansion, investments in existing counters and online capabilities. We returned $1.2 billion in cash to stockholders through both dividends and share repurchases. Beginning in December of 2022, we suspended the repurchase of shares given the increase in debt due to the TOM FORD acquisition.

現在轉向我們本財年的現金流。我們的經營活動淨現金流量為 17 億美元，而去年為 30 億美元。這一下降反映了淨利潤的下降，但部分被營運資本的下降所抵消。我們投資了 10 億美元用於增強供應鏈的資本支出，包括我們在日本的新製造工廠、面向消費者的資本（例如分銷擴張）、對現有櫃檯和在線能力的投資。我們通過股息和股票回購向股東返還 12 億美元現金。從 2022 年 12 月開始，鑑於收購 TOM FORD 導致債務增加，我們暫停了股票回購。

Before I turn to our outlook for the full year, I want to take a moment to first address the recent cybersecurity incident we disclosed in July, involving an unauthorized third-party that gained access to some of our systems. After becoming aware of the incident, we proactively took down some of our systems. We began bringing our systems back online within days, which limited the incidents impact on the company's operations. Based on the information available to date, we believe the incident is contained.

在談到我們對全年的展望之前，我想花點時間先談談我們在 7 月份披露的最近的網絡安全事件，該事件涉及未經授權的第三方訪問我們的一些系統。意識到這一事件後，我們主動關閉了一些系統。我們開始在幾天內使系統恢復在線，這限制了事件對公司運營的影響。根據迄今為止掌握的信息，我們認為事件已得到控制。

So now, let's turn to our outlook. This past year has undoubtedly been difficult, largely given the challenges we faced from increased market volatility in certain markets and the corresponding impact on our business. As we work to return to net sales growth in fiscal 2024, and over the next few years, progressively rebuild our operating margin, we remain focused on the transition of key areas of our business that have been disproportionately impacted by a slower pace of recovery while also continuing to support growth in those areas where the recovery is more advanced.

現在，讓我們談談我們的展望。過去的一年無疑是困難的，主要是因為我們面臨著某些市場波動加劇以及對我們業務的相應影響的挑戰。隨著我們努力在2024 財年恢復淨銷售額增長，並在未來幾年逐步重建我們的營業利潤率，我們仍將重點放在業務關鍵領域的轉型上，這些領域受到復蘇步伐放緩的影響尤為嚴重，而還繼續支持復甦程度較高的領域的增長。

Over the next few years, Mainland China and our travel retail business are expected to remain key drivers of our long-term profitable growth, and we anticipate continued growth with other areas of our business, including emerging markets globally, our more mature markets in the West and our direct-to-consumer channels globally. Assuming an eventual return to global prestige growth of 4% to 5%, we expect to return to more consistent compounded annual sales growth within our 6% to 8% long-term growth algorithm.

未來幾年，中國大陸和我們的旅遊零售業務預計仍將是我們長期盈利增長的主要驅動力，我們預計其他業務領域將持續增長，包括全球新興市場、我們在亞太地區較成熟的市場。 West 和我們的全球直接面向消費者的渠道。假設全球聲譽最終恢復 4% 至 5% 的增長，我們預計將在 6% 至 8% 的長期增長算法內恢復更穩定的複合年銷售增長。

Restoration of our operating margin is a top priority, though margin recovery will not happen in 1 year. We do, however, expect to progressively drive margin expansion as we return to profitable growth in Skin Care, improved Makeup margins and continue to drive our momentum in Fragrance, particularly our high-end artisanal fragrance brands. In addition, we plan to expand our gross margins through continuing to leverage our prestige pricing power, inclusive of driving additional accretive and compelling innovation, and improvements in operational efficiencies including enhanced supply demand planning and inventory optimization to reduce excess inventory and discount.

恢復營業利潤率是我們的首要任務，儘管利潤率恢復不會在一年內實現。然而，隨著我們在護膚品領域恢復盈利增長，改善化妝品利潤率，並繼續推動我們在香水領域的發展勢頭，特別是我們的高端手工香水品牌，我們確實預計將逐步推動利潤率擴張。此外，我們計劃通過繼續利用我們的聲望定價能力來擴大毛利率，包括推動額外的增值和引人注目的創新，以及提高運營效率，包括加強供應需求規劃和庫存優化，以減少過剩庫存和折扣。

We will begin to leverage the further regionalization of our manufacturing and distribution network in Asia to create greater inventory agility as demand fluctuates. Overall, beginning in fiscal 2024, we expect to recapture lost operating margin -- overall -- I'm sorry, beyond fiscal 2024, we expect to recapture lost operating margin at an accelerated pace by delivering annual margin expansion that is faster than our pre-pandemic historical average. This acceleration is expected to become more evident after the first quarter of fiscal 2024.

我們將開始利用亞洲製造和分銷網絡的進一步區域化，在需求波動時創造更大的庫存靈活性。總體而言，從2024 財年開始，我們預計將重新奪回失去的營業利潤率——總體而言——抱歉，在2024 財年之後，我們預計將通過實現比預期更快的年度利潤率擴張來加速奪回失去的營業利潤率。 -大流行的歷史平均值。預計這種加速將在 2024 財年第一季度之後變得更加明顯。

So turning to fiscal 2024. We expect to continue to deliver net sales gains in the areas that performed well in 2023, including Asia Pacific, our Western and emerging European markets and Latin America, as they continue to progress in recovery from the pandemic, and benefit from the strategic actions we are taking to accelerate growth, including targeted consumer activation, compelling innovation and distribution enhancements that we drove throughout the pandemic period. We are, however, mindful of the macroeconomic headwinds that have emerged in Chinese economy. This has also resulted in our Asia travel retail business taking a bit longer than we originally anticipated to return to growth as travel and conversion remain pressured, which has been exacerbated by the sudden reduction of sales to non-travelers relative to the return of individual travelers in Korea and in Hainan. Correspondingly, inventory levels in the trade in Asia travel retail have improved at a slower pace. This will create greater pressure on our first half as we expect to continue to both adjust our shipments and increase our retail activation, but also should yield sequential quarterly improvements throughout the year in both sales and margin.

因此，轉向2024 財年。我們預計2023 年表現良好的地區將繼續實現淨銷售額增長，包括亞太地區、西歐和新興歐洲市場以及拉丁美洲，因為它們在從大流行中恢復的過程中不斷取得進展，並且受益於我們為加速增長而採取的戰略行動，包括我們在整個大流行期間推動的有針對性的消費者激活、引人注目的創新和分銷增強。然而，我們注意到中國經濟中出現的宏觀經濟阻力。這也導致我們的亞洲旅遊零售業務恢復增長所需的時間比我們最初預期的要長一些，因為旅行和轉化仍然面臨壓力，而相對於散客回歸而言，針對非旅行者的銷售突然減少，加劇了這種壓力。韓國、海南。相應地，亞洲旅遊零售業的庫存水平改善速度較慢。這將為我們上半年帶來更大的壓力，因為我們預計將繼續調整出貨量並增加零售活動，但全年銷售額和利潤率也應該會出現連續季度的改善。

With that backdrop in mind, and using June 30 spot rates of 1.087 for the euro, 1.261 for the pound, 7.253 for the Chinese yuan and 13.21 for the Korean won, the full fiscal year organic net sales are forecasted to grow 6% to 8%. Royalty revenue from the acquisition of the TOM FORD brand is not expected to be material to net sales growth and will be excluded from organic net sales until the fourth quarter. The cybersecurity incident is also not expected to have a material impact to net sales. Currency translation is expected to dilute reported sales growth for the full fiscal year by 1 percentage point.

考慮到這一背景，並使用 6 月 30 日即期匯率歐元 1.087、英鎊 1.261、人民幣 7.253 和韓元 13.21，整個財年有機淨銷售額預計將增長 6%，達到 8 %。收購 TOM FORD 品牌的特許權使用費預計不會對淨銷售額增長產生重大影響，並且在第四季度之前將不計入有機淨銷售額。預計網絡安全事件不會對淨銷售額產生重大影響。貨幣換算預計將導致整個財年報告的銷售增長減少 1 個百分點。

We take the majority of our pricing actions at the beginning of our fiscal year. Our strategic price increases, including new products, are expected to add approximately 5 points of growth. We expect the net benefits from strategic pricing, discount reductions and lower obsolescence to drive gross margin expansion for the full year, partially offset by manufacturing under-absorption.

我們的大部分定價行動是在財政年度開始時採取的。我們的戰略提價（包括新產品）預計將增加約 5 個百分點的增長。我們預計戰略定價、折扣減少和報廢減少帶來的淨收益將推動全年毛利率的增長，但部分被製造業吸收不足所抵消。

We are aligning our production volumes to address a more variable demand environment with the intent to carry less inventory in our system and in the trade while we continue to regionalize our supply base in Asia. However, we expect the lower mix of net sales from the highly margin-accretive areas of our business, including Asia travel retail and Skin Care, and the under-absorption of overhead to result in margin contraction in the first half of the year. This is expected to be more than offset by gross margin expansion in the second half of the year, given the greater mix of our travel retail business and Skin Care and less obsolescence charges compared to last year.

我們正在調整我們的產量，以應對更加多變的需求環境，目的是減少我們系統和貿易中的庫存，同時繼續將我們在亞洲的供應基地區域化。然而，我們預計，亞洲旅遊零售和護膚品等利潤率高的業務領域的淨銷售額組合較低，以及管理費用吸收不足，將導致今年上半年利潤率收縮。鑑於我們的旅遊零售業務和護膚品業務的組合規模更大，而且與去年相比，過時費用減少，預計下半年毛利率的增長將足以抵消這一影響。

Our full year operating margin is forecasted to be approximately 12% to 12.5%, a 60 to 110 basis point expansion from fiscal 2023. In fiscal 2024, we anticipate sequential margin expansion throughout the year driven by improvements in gross margin, while also maintaining go-to-market initiatives where appropriate. We expect our full year effective tax rate to be approximately 27%. Diluted EPS is expected to range between $3.50 and $3.75 before restructuring and other charges. The cybersecurity incident is expected to be approximately $0.07 dilutive to EPS. Our EPS range also includes approximately $0.11 of dilution from currency translation.

我們的全年營業利潤率預計約為12% 至12.5%，較2023 財年增長60 至110 個基點。在2024 財年，我們預計在毛利率改善的推動下，全年利潤率將連續增長，同時保持盈利- 在適當的情況下採取市場化舉措。我們預計全年有效稅率約為 27%。扣除重組和其他費用之前，稀釋後每股收益預計在 3.50 美元至 3.75 美元之間。此次網絡安全事件預計將稀釋 EPS 約 0.07 美元。我們的 EPS 範圍還包括大約 0.11 美元的貨幣換算稀釋。

In constant currency, we expect EPS to grow by approximately 4% to 12%. Net cash flows from operating activities are forecasted between $1.7 billion and $1.8 billion. Capital expenditures are planned at approximately 6% of forecasted net sales as we expect to fund new distribution and online capabilities, further enhance our manufacturing and distribution network, including the completion of our first manufacturing facility in Asia located in Japan to support the development of our Asia Pacific region. We also plan to continue investing in information technology to support our business.

按固定匯率計算，我們預計每股收益將增長約 4% 至 12%。經營活動產生的淨現金流量預計在 17 億美元至 18 億美元之間。資本支出計劃佔預測淨銷售額的約6%，因為我們希望為新的分銷和在線能力提供資金，進一步增強我們的製造和分銷網絡，包括在日本建成我們在亞洲的第一個製造工廠，以支持我們的發展亞太地區。我們還計劃繼續投資信息技術以支持我們的業務。

Our fiscal 2024 outlook also assumes flat quarterly dividend and the continued suspension of our share repurchases as we focus on deleveraging after the TOM FORD acquisition and prepare for the payment to purchase the remaining outstanding equity interest in DECIEM anticipated in May of 2024.

我們的 2024 財年展望還假設季度股息持平，並且繼續暫停股票回購，因為我們在收購 TOM FORD 後專注於去槓桿化，並準備支付預計於 2024 年 5 月購買 DECIEM 剩餘未償還股權的費用。

For our first quarter, we currently expect organic net sales to fall 12% to 10%. The cybersecurity incident is not expected to have a material impact to net sales. At this time, we expect first quarter diluted EPS of negative $0.31 to negative $0.21 before restructuring and other charges. The cybersecurity incident is expected to be approximately $0.07 dilutive to EPS. This also includes approximately $0.02 of dilution from currency translation. In constant currency, we expect EPS of negative $0.29 to negative $0.19.

對於第一季度，我們目前預計有機淨銷售額將下降 12% 至 10%。預計網絡安全事件不會對淨銷售額產生重大影響。目前，我們預計第一季度稀釋後每股收益為負 0.31 美元至負 0.21 美元（不計重組和其他費用）。此次網絡安全事件預計將稀釋 EPS 約 0.07 美元。這還包括大約 0.02 美元的貨幣換算稀釋。按固定匯率計算，我們預計每股收益為負 0.29 美元至負 0.19 美元。

I would like to close by thanking our employees for their dedication and focus during what turned out to be a challenging year. While we are not satisfied with our performance overall, we are certainly pleased by the results we were able to deliver in many recovering markets and brands. For fiscal 2024, we believe we have the right plans to navigate the environment as we gradually return to our historical cadence of long-term progressive and sustainable sales and profit growth, fueled by our highly desirable brand portfolio and our incredibly talented employees.

最後，我要感謝我們的員工在充滿挑戰的一年中的奉獻和專注。雖然我們對整體表現並不滿意，但我們對在許多複甦的市場和品牌中取得的成果感到非常滿意。對於2024 財年，我們相信，在我們非常理想的品牌組合和才華橫溢的員工的推動下，我們有正確的計劃來應對環境，因為我們逐漸恢復了長期進步和可持續的銷售和利潤增長的歷史節奏。

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

我們準備好的發言就到此結束。我們很樂意此時回答您的問題。

The floor is now open for questions. (Operator Instructions) Our first question today comes from Steve Powers from Deutsche Bank.

現在可以提問。 （操作員指令）我們今天的第一個問題來自德意志銀行的 Steve Powers。

I'd love it if you could address 2 topics, maybe 1 for you, Tracey, 1 for you, Fabrizio. First for Tracey, just -- appreciate your commentary at the end there, but just maybe a little bit more detail, if you could expand on the assumptions embedded in the 1Q step back and declines juxtaposed against what looks like a pretty rapid return to fairly -- to basically double-digit organic growth over the remainder of the year? Just little more color there, and I'm assuming a lot of the variability is focused on Hainan, so maybe some expansion there?

如果您能解決 2 個主題，我會很高興，也許 1 個適合您，Tracey，1 個適合您，Fabrizio。首先，特雷西，感謝您最後的評論，但如果您可以擴展第一季度後退和下降中嵌入的假設，並與看起來相當快速地恢復到相當水平的情況並列，那麼可能會更詳細一些。 ——在今年剩餘時間內實現基本上兩位數的有機增長？只是那裡有更多的顏色，我假設很多變化都集中在海南，所以也許那裡有一些擴展？

And then Fabrizio, I know the company had a leadership offsite in June. I'd love your perspective on how recent changes in the operating environment impacted points of emphasis of that meeting? And how the related discussion may have informed your '24 outlook?

然後是 Fabrizio，我知道公司 6 月份有一個異地領導層。我想了解您對最近運營環境變化如何影響該會議重點的看法？相關討論如何影響您對 24 世紀的展望？

Steve. So I'll start with your question regarding the cadence of the year. And you're right, there is a lot of variability. If I would take you back to the first and second quarter of last year, you'll recall that while we had some disruption in Hainan, we did have -- we still had some business in Hainan. We also had business in Korea. So our travel retail percent of mix was higher in the first half of last year in addition to, obviously, the recovery that we were seeing in the EMEA and Americas regions in terms of the airports in those regions.

史蒂夫.所以我將從你關於今年節奏的問題開始。你是對的，存在很多變化。如果我帶你回顧去年第一季度和第二季度，你會記得，雖然我們在海南遇到了一些干擾，但我們在海南仍然有一些業務。我們在韓國也有業務。因此，去年上半年我們的旅遊零售混合百分比更高，顯然，除了我們在歐洲、中東和非洲和美洲地區機場看到的複甦之外。

In the second half of the year, then obviously, we saw the challenges that we've called out certainly in the last call as it relates to both Korea, and obviously, what Fabrizio talked about in the fourth quarter as it relates to Hainan. We have a bit of a reverse situation as we're anniversary-ing those impacts this year. So with what happened in the May, June time frame in Hainan, we are seeing less traffic and less conversion in Hainan than we saw previously. That is impacting our Q1 certainly compared to last year when we saw more traffic and more conversion in Hainan and in Korea. That gets a bit better in Q2, as we anniversary some of the softness that began to materialize in Q2 last year in those 2 areas. And then we're anniversary-ing, obviously, the softness that we experienced in the second half of our fiscal '23 in fiscal '24. So we are expecting that travel retail will get progressively better in the third and fourth quarter, certainly compared to the third and fourth quarter we had this year.

顯然，在今年下半年，我們看到了我們在上次電話會議中提到的與韓國有關的挑戰，顯然，法布里奇奧在第四季度談到的與海南有關的挑戰。今年我們正值這些影響週年紀念，但情況卻有些相反。因此，根據海南五月、六月期間發生的情況，我們看到海南的流量和轉化率比之前有所減少。與去年相比，這無疑對我們的第一季度產生了影響，去年我們在海南和韓國看到了更多的流量和更多的轉化。第二季度情況會有所好轉，因為我們紀念了去年第二季度這兩個領域開始出現的一些疲軟現象。顯然，我們正在慶祝我們在 23 財年下半年和 24 財年經歷的疲軟。因此，我們預計旅遊零售在第三和第四季度將逐步好轉，當然與今年第三和第四季度相比。

Part of that, Steve, is obviously the destocking that we are doing. So in Hainan, obviously, with the sudden change in Daigou, that is making the retail traffic slower than what we had anticipated. And as a result of that, it's changing our view on the shipments that we will need for Hainan in the first quarter and certainly a bit into the second quarter. So I hope that helps in terms of some of the cadence of what we're experiencing and why the margin differential is so great. As you know, travel retail certainly benefits from a lot of the investment that we make in our markets like China and Korea and Japan, and all of the other markets not only in Asia, but in EMEA as well. And so it is a high margin -- higher margin channel for us for some of those reasons. Fabrizio?

史蒂夫，其中一部分顯然是我們正在進行的去庫存工作。因此，在海南，顯然，隨著代購的突然變化，零售流量比我們預期的要慢。因此，它改變了我們對海南第一季度和第二季度所需發貨量的看法。因此，我希望這對我們正在經歷的一些節奏以及為什麼利潤差異如此之大有所幫助。如您所知，旅遊零售無疑受益於我們在中國、韓國和日本等市場以及亞洲和歐洲、中東和非洲等所有其他市場的大量投資。因此，由於其中一些原因，這對我們來說是一個高利潤率的渠道。法布里齊奧？

Yes, on our leadership. In June, we looked at the strategy and the strategy of the future. And so what Tracey and I have presented in our prepared remarks are the results of also this work of reconfirming the strategy for 2024 for the next 3 years. And so what are the key takeaways was your question. It's that, first of all, the market of global prestige beauty continue to be very attractive and will continue to be more and more attractive in the future. And our strategy is, as I explained in the prepared remarks, is now focused on continued building on our strengths and continue building the areas where we are really delivering great results and supporting this growth.

是的，靠我們的領導力。六月，我們審視了戰略和未來的戰略。因此，特雷西和我在準備好的發言中所介紹的也是重新確認未來 3 年 2024 年戰略的工作成果。那麼你的問題主要是什麼？首先，全球高端美容市場仍然非常有吸引力，並且在未來將繼續變得越來越有吸引力。正如我在準備好的發言中所解釋的那樣，我們的戰略現在的重點是繼續增強我們的優勢，並繼續建設我們真正能夠取得巨大成果並支持這種增長的領域。

At the same time, continue reinforcing the health of our brands and the innovation of our brands and refocusing resources and activities in all these areas. And then fix the TR issue, including a much better coordination between TR organization in China and China region organization in Mainland, and the plans for the North America acceleration. And to continue winning emerging markets. By the way, in the last quarter, we're astonishing with a 38% growth. And so deploying the resources, the capabilities, the skills to continue doing this in the key emerging markets. I have to say, the excitement in India is particularly high.

與此同時，繼續加強我們品牌的健康和創新，並重新集中所有這些領域的資源和活動。然後解決TR問題，包括中國TR組織和大陸中國區域組織之間更好的協調，以及北美加速的計劃。並繼續贏得新興市場。順便說一下，上個季度，我們的增長率達到了 38%，令人驚訝。因此，要部署資源、能力和技能，繼續在關鍵新興市場開展這項工作。不得不說，印度的熱鬧特別高。

And so in summary, the leadership of the company has agreed and allocated resources and skills on the key components of the strategy for the next 3 years, which is leverage the growth of the market. And obviously, continue to build our strengths, fix our issues, and most importantly, support the profit recovery plan that again, we explained in the prepared remarks, in every single aspect at accelerated pace of profit recovery, as Tracey just explained.

總而言之，公司領導層已就未來 3 年戰略的關鍵組成部分達成一致並分配了資源和技能，即利用市場的增長。顯然，繼續增強我們的優勢，解決我們的問題，最重要的是，支持利潤恢復計劃，我們在準備好的發言中再次解釋了這一點，在各個方面都加快了利潤恢復的步伐，正如特雷西剛才所解釋的那樣。

The next question comes from Dara Mohsenian from Morgan Stanley.

下一個問題來自摩根士丹利的 Dara Mohsenian。

So 2-part question on my end that I think builds on that answer, Fabrizio. Some fairly unique circumstances in the past year, both externally and internally, that caused weaker results than you originally expected. That's uncharacteristic versus a longer-term track record. So just wanted to get your perspective on, A, if you think you have good visibility on this fiscal '24 earnings guidance? How much investment are you assuming incrementally to drive a recovery post '24? And then B, perhaps, Tracey, you gave us some detail on margin expectations. But how should we think about sort of the ability to get back to peak historical margins at some point over the next few years? And how quickly we might see margin recovery relative to this '24 base just as we think about those 4 building blocks you mentioned from here?

因此，我認為我的問題分為兩部分，是建立在這個答案的基礎上的，Fabrizio。過去一年中一些相當獨特的情況，無論是外部還是內部，導致結果比您最初預期的要弱。與長期記錄相比，這是不尋常的。因此，我只是想了解一下您的觀點，A，您是否認為自己對 24 財年的盈利指引有良好的了解？您預計將增加多少投資來推動 24 年後的複蘇？然後，B，也許是特雷西，您向我們提供了一些有關利潤率預期的詳細信息。但我們應該如何考慮在未來幾年的某個時候恢復到歷史最高利潤率的能力呢？正如我們考慮您在這裡提到的這 4 個構建模塊一樣，相對於 24 年的基數，我們能多快看到利潤率恢復？

Yes. In terms of the visibility to the guidance, obviously, if Tracey and I have given you this guidance, we believe that that's the -- in this moment, is the project of the business. So we have visibility and clarity in terms of our plans. I want, however, to underline that the volatility externally remain very, very high, particularly the volatility in the Chinese market, the volatility in the transition in the TR market from the Daigou to the regular travelers, the transition to the groups traveling. They've just been announced in terms of law.. The transition, obviously, on the judgment of what the economy recovery will be globally, particularly in the post-pandemic environment, particularly how the economy in China will evolve. So all these external elements are part, obviously -- or assumptions of these external elements are part of our guidance. And in the press release, we made an effort to explain all our assumptions in the guidance.

是的。就指導的可見性而言，顯然，如果特雷西和我向您提供了此指導，我們相信這就是此時此刻的業務項目。因此，我們的計劃具有可見性和清晰度。然而，我想強調的是，外部的波動性仍然非常非常高，特別是中國市場的波動性，TR市場從代購向普通旅行者過渡，向團體旅行過渡的波動性。它們剛剛以法律形式宣布。顯然，這種轉變是基於對全球經濟復甦的判斷，特別是在疫情后的環境下，特別是中國經濟將如何發展。因此，顯然，所有這些外部因素都是一部分，或者這些外部因素的假設是我們指導的一部分。在新聞稿中，我們努力解釋了指南中的所有假設。

And then in terms of our internal plans and in term of the continued leveraging our current trends on the things which are working, we are pretty confident. The real question is how fast we will be fixing the issues? But the strengths of the current trends of what is working are frankly more easy to predict than to forecast. So net, we believe in our guidance, but will be obviously volatility to be managed in the context of the future, and you will see as much as we will see the evolution in these areas. And then Tracey?

然後就我們的內部計劃以及繼續利用我們當前的趨勢進行有效的事情而言，我們非常有信心。真正的問題是我們解決問題的速度有多快？但坦率地說，當前有效趨勢的優勢比預測更容易預測。因此，淨而言，我們相信我們的指導，但顯然會在未來的背景下管理波動性，您將看到我們將看到這些領域的演變。然後特雷西？

Yes, Dara. So I mean, certainly, we are encouraged by some of the signs we see -- recent signs that we see in terms of recovery. The return of travelers. We are, as Fabrizio mentioned, in terms of our fiscal '24, taking actions to pretty dramatically pull back on some of our production so that we can get our inventory levels in line. And that will improve our margin. And I talked about in my prepared remarks that we're expecting gross margin recovery from some of those actions. As the situation normalizes and more travelers come back to travel retail, we are very confident in the strategy that we've had previously. Pre-pandemic, we were well on our way to those 20% operating margins. We don't see any reason why, once things normalize, that we can't get back to those 20% margins.

是的，達拉。所以我的意思是，我們看到的一些跡象當然令我們感到鼓舞——最近我們看到的複蘇跡象。旅客歸來。正如 Fabrizio 提到的，就我們的 24 財年而言，我們正在採取行動大幅削減部分生產，以便我們能夠保持庫存水平。這將提高我們的利潤率。我在準備好的發言中談到，我們預計其中一些行動將導致毛利率恢復。隨著情況恢復正常，越來越多的遊客回歸旅遊零售，我們對之前的策略非常有信心。在大流行之前，我們正在順利實現 20% 的營業利潤率。我們認為，一旦情況恢復正常，我們就無法恢復 20% 的利潤率。

Timing, I can't give you. I have said in our prepared remarks that we certainly, over the next few years, have plans to accelerate the margin progression well above our historical guidance of 50 basis points of margin improvement, and that does recommend -- that does represent a catch-up in margin progression and again, the strategies that we have to do that. But we are incredibly focused as an organization on returning to the margins that are more representative of our growth and our growth potential. I will also underscore the fact that we will not do that at the expense -- at the short-term expense of hurting our brands or hurting our markets that are in recovery, so it is a balancing act for us in terms of making sure we're making the right surgical investments that support not only the recovery and the markets that are further along in recovery, and as well as the long-term investments that we need to continue our growth algorithm of 6% to 8% top line growth and margin expansion.

時間，我不能給你。我在我們準備好的發言中說過，我們當然計劃在未來幾年內加快利潤率增長，遠高於我們的歷史指導，即利潤率提高50 個基點，這確實表明——這確實代表了一種追趕。利潤增長以及我們必須採取的策略。但作為一個組織，我們非常注重回歸更能代表我們的增長和增長潛力的利潤。我還要強調一個事實，我們不會以損害我們的品牌或損害我們正在復甦的市場為代價來這樣做，因此，這對我們來說是一種平衡行為，以確保我們正在做出正確的外科投資，不僅支持復甦和進一步復甦的市場，而且還支持我們繼續實現6% 至8% 營收增長的增長算法所需的長期投資，利潤擴張。

So again, I can't -- I know that's not the answer you're looking for in terms of you want a specific year and a specific number. And hopefully, we will be able to give that to you when we get a bit more clarity on more stabilization in the environment. But right now, you have the commitment of our entire organization that we recognize and have plans to accelerate our margin progression well beyond our historical levels in order to try to catch up.

再說一次，我不能——我知道這不是你想要的答案，因為你想要一個特定的年份和特定的數字。希望當我們對環境更加穩定有了更清晰的認識時，我們能夠向您提供這一信息。但現在，我們整個組織都做出了承諾，我們認識到這一點，併計劃加速我們的利潤率增長，遠遠超出我們的歷史水平，以便努力迎頭趕上。

Our next question comes from Chris Carey from Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的克里斯·凱里。

So just one quick follow-up, and then a kind of a geographic question. Just on the China travel retail inventory dynamic. Fabrizio, you had mentioned that there's going to be greater collaboration between your teams in Mainland and China travel retail. What's your confidence that some of the things that you may need to do to invest behind clearing your inventory won't impact brand equities and brand health? And I'm basically just trying to get a sense of the types of actions that you might be taking to clear inventory of -- consumption trends are as volatile as you say?

所以只需一個快速跟進，然後是一個地理問題。剛剛關於中國旅遊零售庫存動態。 Fabrizio，您曾提到您的團隊在大陸和中國旅遊零售領域之間將會加強合作。您對清理庫存可能需要做的一些投資不會影響品牌資產和品牌健康的信心有多大？我基本上只是想了解一下您可能會採取哪些行動來清理庫存——消費趨勢是否像您所說的那樣不穩定？

And then just the geographic question would be, you had mentioned quite impressive growth rates in India but also some underperformance in North America. Just over the next 12 months or longer, how do you think about this non-Asia market progressing, with perhaps to touch on what you see in some of these newer, faster-growth markets?

然後就是地理問題，您提到印度的增長率相當可觀，但北美的表現也有些不佳。在接下來的 12 個月或更長時間裡，您如何看待這個非亞洲市場的進展，或許可以談談您在一些較新、增長較快的市場中看到的情況？

Yes. So I mean the -- in terms of the travel retail issue, you described it well. So we have increased the collaboration between the local team and the TR team just to have not only a better common decision-making on the key prioritization on the balancing act in order to create value and in order to continue to develop brand equities in a more coordinated way, but we also have more analytics to understand the channel dynamics, the pricing differentials and all the things. So we have created the base of much more information and timely information to take the right decisions in coordination. So this is a big improvement that should reduce the risk of non-coordinated actions in the future.

是的。所以我的意思是——就旅遊零售問題而言，你描述得很好。因此，我們加強了本地團隊和TR團隊之間的合作，不僅是為了在平衡行為的關鍵優先級上有更好的共同決策，以創造價值，也是為了以更廣泛的方式繼續發展品牌資產。協調的方式，但我們也有更多的分析來了解渠道動態、定價差異和所有事情。因此，我們創建了更多信息和及時信息的基礎，以便協調做出正確的決策。所以這是一個很大的改進，應該會減少未來不協調行動的風險。

Then the brand health that you also mentioned, I want to underline the brand health is evident from the results in China. The brand health in -- with the Chinese consumers is really strong. And we have good market share results, which we already mentioned. The business has been growing 36% in the April, June quarter. The online market share has been extremely strong, 2 points extra of online market share. Our activation and consumer passion for our brands has been further confirmed by external research that our brands are at the top of the ranking of desirable brands in the market. So the brand equity, the brand health, also thanks the extraordinary work of our Mainland region, China Mainland region team is in good shape.

那麼你也提到的品牌健康度，我想強調品牌健康度從中國的結果來看是顯而易見的。中國消費者的品牌健康度確實很強。我們已經提到了良好的市場份額結果。該業務在 4 月和 6 月季度增長了 36%。在線市場份額非常強勁，比在線市場份額高出2個百分點。外部研究進一步證實我們的品牌激活度和消費者熱情，我們的品牌在市場理想品牌排名中名列前茅。所以品牌資產、品牌健康度，也得益於我們大陸地區的出色​​工作，中國大陸地區團隊狀態良好。

And then you said correctly that we are very focused on the sell-through of the stocks, just to talk about the stocks. Obviously, as Tracey has explained, in May, June, Hainan was relatively weak, and that's why there is an impact also on the first quarter trend. But is -- but we are very focused on creating the retail activities that will facilitate the sell-through, and that's the key focus of the team. So in that area, we are very aligned. We have the organization resources squared, and we are focused on all these issues very squarely.

然後你說得對，我們非常關注股票的賣出，只是談談股票。顯然，正如Tracey所解釋的，5月、6月，海南相對疲軟，這就是為什麼對第一季度的走勢也有影響。但我們非常專注於創造能夠促進銷售的零售活動，這是團隊的重點。所以在這個領域，我們非常一致。我們擁有組織資源，並且非常專注於所有這些問題。

On the second part of your question is, if I can give you light on the other markets. I mean the -- I hope that the report is very clear. The rest of our business, ex the TR Asia, has been growing in the last quarter, 17%. This is one of our fastest growth rate ever despite North America flat. And so we have really undergone strengths in all the rest of our business, which is the results of all the brand strengths which I explained in the prepared remarks. So we have 4 very big brands, well above $1 billion brands, and we will have 2 more. So to be clear, we will be a company by the end of 2024 with $6 billion brands, extraordinary scale in the global system and global reach. So this is behind our strengths.

你問題的第二部分是，我是否可以向你介紹其他市場。我的意思是——我希望報告非常清楚。我們的其餘業務（TR Asia 除外）在上個季度一直在增長，增長了 17%。儘管北美地區持平，但這是我們有史以來最快的增長率之一。因此，我們在所有其他業務中確實獲得了優勢，這是我在準備好的發言中解釋的所有品牌優勢的結果。所以我們有 4 個非常大的品牌，遠遠超過 10 億美元的品牌，我們還會有 2 個。需要明確的是，到 2024 年底，我們將成為一家擁有 60 億美元品牌、全球體系規模和全球影響力的公司。所以這是我們的優勢所在。

Then I wanted to underline strength of our innovation. Our innovation is strong. It's also in tough challenging year like 2023, remains at 25%. And the innovation pipeline for 2024, 2025 is very, very strong. Particularly in 2025, we have some extra white spaces innovation, which are very promising. So this also will support the continuous strength of these other parts of the business -- other regions, as you mentioned.

然後我想強調我們的創新實力。我們的創新能力很強。 2023 年也是充滿挑戰的一年，仍保持在 25%。 2024 年、2025 年的創新渠道非常非常強大。特別是在2025年，我們有一些額外的空白創新，這是非常有前途的。因此，正如您提到的，這也將支持業務的其他部分（其他地區）的持續發展。

And then finally, the execution in this region has been stepping up because we explained that as the recovery from the pandemic progress, our ability to execute in the post-pandemic world has been developed and is getting better and better month after month. So in the regions which have been faster in the post-pandemic development, we have been faster in recovering great execution and great results, so this will continue to progress in 2024. So we have good confidence on that.

最後，該地區的執行力一直在加強，因為我們解釋說，隨著大流行病復甦的進展，我們在大流行後世界的執行能力已經得到發展，並且逐月變得越來越好。因此，在疫情后發展較快的地區，我們更快地恢復了良好的執行力和良好的業績，因此這將在2024年繼續取得進展。所以我們對此充滿信心。

On the U.S. where, on the contrary, we said there is work to be done, the team is very focused on doing this work. We have a very clear plan. Again, I summarized them in the prepared remarks, but to go back to them, our strategy in rebuilding the North America growth is really various -- these 4 big building blocks. The first one is a very rich pipeline of newness, which is later in 2024 and further enforced in 2025, focus on breakthrough innovation on new claims that will help also unlocking the consumers in online and specialty-multi more aggressively. We are driving higher E&D through our investment in various platforms, including TikTok, or especially TikTok. We are focused on strategic pricing to drive value per unit in correct way, and we will continue to recruit consumers with very strong activities. Also commercial activities, which are focused on this, in support in the -- with the support of our retailers, which are very aligned on this front. And our high-touch services are continuing to evolving, particularly online, with new technology and new activities.

相反，在美國，我們說還有工作要做，團隊非常專注於做這項工作。我們有一個非常明確的計劃。我再次在準備好的發言中總結了它們，但回到它們，我們重建北美增長的戰略確實多種多樣——這四大組成部分。第一個是非常豐富的新產品渠道，將於2024 年晚些時候實施，並於2025 年進一步實施，重點關注新主張的突破性創新，這也將有助於更積極地釋放在線和專業多元化領域的消費者。我們通過對包括 TikTok 在內的各種平台的投資，尤其是 TikTok 來推動更高的 E&D。我們專注於戰略定價，以正確的方式推動單位價值，我們將繼續通過非常強大的活動來吸引消費者。此外，商業活動也側重於這一點，並得到我們零售商的支持，他們在這方面非常一致。我們的高接觸服務正在隨著新技術和新活動的不斷發展，特別是在線服務。

So the -- I also want to underline that in North America, our business of M·A·C, our business of Clinique, our business of The Ordinary, so the entry price point brands is particularly important. The scale in North America in our business is the entry price point brands, and all these brands have very exciting brand-by-brand plan. And then, the opportunity in luxury fragrances is extraordinary. And you have seen the strength of luxury fragrances around the world, and now we will further leverage also in North America as the next steps. Keep in mind that in the luxury fragrance part of our portfolio in the last 10 quarters in a row had double-digit growth or more, despite North America has not yet fully leveraged these potential engines. So this will be another big addition as of 2024.

因此，我還想強調，在北美，我們的 M·A·C 業務、我們的 Clinique 業務、我們的 The Ordinary 業務，因此入門級品牌尤為重要。我們在北美的業務規模屬於入門價位品牌，而且所有這些品牌都有非常令人興奮的品牌計劃。然後，奢侈香水領域的機會非比尋常。您已經看到了世界各地奢華香水的實力，現在我們將進一步利用北美作為下一步的舉措。請記住，儘管北美尚未充分利用這些潛在引擎，但我們投資組合中的奢華香水部分在過去 10 個季度連續實現了兩位數或更多的增長。因此，這將是 2024 年的另一個重大補充。

Our next question comes from Bryan Spillane from Bank of America.

我們的下一個問題來自美國銀行的 Bryan Spillane。

I just have one question, and I think you've touched on it a couple of times in both the prepared remarks and the press release. It's just what's happening in Hainan with the Daigou and kind of the reseller market? So can you just -- as you're looking forward, is your expectation that it really -- that travel retail in Hainan specifically becomes really just more selling to individuals? And that the Daigou piece will be a lot smaller or maybe not even much of an element at all going forward? Just -- and if that's true, just how that changes how you're approaching operating in China now? Kind of, where do you make up those sales if you don't have the -- as big a presence with Daigou?

我只有一個問題，我想你在準備好的發言和新聞稿中都多次提到過這個問題。這就是海南代購和經銷商市場正在發生的事情嗎？那麼，正如您所期待的那樣，您是否期望海南的旅遊零售業真的會更多地向個人銷售？代購的部分將會變得更小，或者甚至可能不再是未來的一個元素？如果這是真的，這將如何改變你們現在在中國的經營方式？有點，如果你沒有代購那麼大的影響力，你從哪裡來彌補這些銷售額呢？

So I'll start in terms of that question. We don't control it, right? We sell to our travel retail operators, and so the whole mix of who is buying in Hainan is really with our retail partners. Part of the adjustment that we are seeing right now is the timing of when regular travelers return to Hainan, when individual travelers, to your point, return to Hainan, and some of the changes in enforcement and regulations that have happened in China. And so there is a disconnect in timing that certainly is impacting our sales, combined with the fact that we are reducing the inventory levels that we have in Hainan. So that is all having a disproportionate effect.

所以我將從這個問題開始。我們無法控制它，對嗎？我們向旅遊零售運營商銷售產品，因此在海南購買的人實際上都是我們的零售合作夥伴。我們現在看到的部分調整是普通旅客返回海南的時間、個人旅客返回海南的時間，以及中國在執法和法規方面發生的一些變化。因此，時間上的脫節肯定會影響我們的銷售，再加上我們正在減少海南的庫存水平。所以這一切都產生了不成比例的影響。

I think when we look at the development that has been done in Hainan, and we've talked about this for several years. Our expectation is that travelers, regular individual travelers, will return to Hainan and they will enjoy the fantastic shopping experience that has been created in Hainan, and we have no concerns whatsoever about travel retail growing with traveling consumers. It's a timing issue for us right now, and so I just wanted to really underscore that. It's a pretty -- it's having a timing issue that's having a big short-term, temporary impact for us. But we are not concerned at all about what we have shared with you in the past in terms of our strategy to continue to grow travel retail globally, and certainly in all of our markets in Asia.

我認為當我們看到海南已經完成的發展時，我們已經討論了這個問題好幾年了。我們的期望是，遊客，經常的散客，回到海南，享受海南創造的美妙購物體驗，我們不擔心旅遊零售會隨著旅遊消費者的增長而增長。現在對我們來說這是一個時間問題，所以我只是想真正強調這一點。這確實是一個時間問題，對我們產生了巨大的短期、暫時的影響。但我們根本不關心我們過去與您分享的關於我們繼續發展全球旅遊零售（尤其是亞洲所有市場）的戰略的內容。

Yes. And I just want to add that we have a clear evidence that when the -- first of all, the regulations and the retailers decide to focus on individual travelers and when individual travelers traffic becomes strongly growing, the business results are outstanding. Our business in EMEA travel retail in this moment is flying, is a plus, I believe, 36%, plus 40%, and the same in the Americas. And now, the same will start in APAC, in Japan, in Australia, et cetera. So wherever there is a post-COVID return to travel, there is a very exciting business growth. And for example, the groups were allowed so far all in Thailand. And in Thailand, this created a very interesting extra sales, although to be clear, still below what was in the group since 2019, but there is a recovery trend.

是的。我只想補充一點，我們有明確的證據表明，首先，當法規和零售商決定關注個人旅行者時，當個人旅行者流量強勁增長時，業務成果將非常出色。目前，我們在歐洲、中東和非洲地區的旅遊零售業務正在飛速發展，我相信，增長了 36%，增長了 40%，美洲也是如此。現在，同樣的情況也將在亞太地區、日本、澳大利亞等地區開始。因此，凡是疫情后旅遊業重新開放的地方，都會出現非常令人興奮的業務增長。例如，到目前為止，這些團體都被允許在泰國境內活動。在泰國，這創造了非常有趣的額外銷售額，儘管需要明確的是，仍低於 2019 年以來該集團的銷售額，但有復蘇趨勢。

So the travel retail channel, in our opinion, remains very, very potential for the long term. And this business of selling to the traveling consumer during their travel is an exciting, profitable, equity-building business. What happened during the pandemic when this part of the business was closed has been a temporary distortion that will be rebalanced over time, as Tracey just explained. That is our expectation and our belief.

因此，我們認為，從長遠來看，旅遊零售渠道仍然非常非常有潛力。這種在旅行期間向旅行消費者進行銷售的業務是一項令人興奮的、有利可圖的、建立股權的業務。正如特雷西剛剛解釋的那樣，在大流行期間，這部分業務關閉時發生的情況是暫時的扭曲，隨著時間的推移，這種扭曲將重新平衡。這是我們的期望，也是我們的信念。

Our next question comes from Lauren Lieberman from Barclays.

我們的下一個問題來自巴克萊銀行的勞倫·利伯曼。

Great. I wanted to talk a little bit about the Japan manufacturing facility and just, overall, Asia-based supply chain for Asia. And just to get a little bit more perspective maybe on where you stand, I guess, completion? Is it -- and I know you're not going to be able to give us something too specific, but is it by the end of the calendar year, Japan is able to fulfill all of the demand out of China? Just something to help us understand kind of the scale to get that up and running.

偉大的。我想談談日本的製造工廠以及整個亞洲的亞洲供應鏈。我想，只是為了對你的立場有更多的了解，完成？我知道你無法給我們提供太具體的信息，但到今年年底，日本是否能夠滿足中國的所有需求？只是幫助我們了解啟動和運行的規模。

And then the implication that has for length of supply chain and then visibility? Because if you're trying to manage in a more volatile backdrop and even offering what you have on time line for recovery in Hainan and travelers, and are they in Korea? And where are they and who are they? You need to be, I guess, more agile. And that local supply chain, I would think, would offer a lot of help on that front, but we don't really have a sense of when it becomes a local supply chain, if you will. So anything you can offer on that front would be really helpful, I think.

那麼對於供應鏈的長度和可見性有何影響？因為如果你試圖在更加動蕩的背景下進行管理，甚至提供海南和旅行者的恢復時間表，他們是在韓國嗎？他們在哪裡，他們是誰？我想，你需要變得更加敏捷。我認為，本地供應鏈會在這方面提供很多幫助，但我們並不真正知道它何時成為本地供應鏈，如果你願意的話。所以我認為你在這方面能提供的任何東西都會非常有幫助。

Okay. Thanks, Lauren. So part of the capital that we'll be spending this year is to complete the factory. So we've done some preproduction runs in fiscal '23. The factory will be producing a bit of the volume for the region in fiscal 2024. We have very specific plans on -- which, largely Skin Care, as we've talked in the past, some foundation products will be manufactured in the plant.

好的。謝謝，勞倫。因此，我們今年將花費的部分資金將用於建造工廠。因此，我們在 23 財年進行了一些預生產工作。該工廠將在 2024 財年為該地區生產部分產品。我們有非常具體的計劃，其中主要是護膚品，正如我們過去所說，一些粉底產品將在該工廠生產。

Given where we're at right now, as you -- as we just spoke about in terms of Skin Care, that will be more gradual. So we have to first complete the plant. We also have opened a new, temporary distribution center in China. We'll be expanding on some of our distribution footprint in China as well. So I would say in terms of -- it will take a couple of years of ramp-up before we have the Asia supply chain fully operational and full from a capacity standpoint. That doesn't mean that as we gradually ramp up over this year and next year, we won't be creating more agility by being able to start to shift some of the production in those areas. But right now, we're working on contracting some of our production just given some of the shocks to the system.

鑑於我們現在所處的位置，正如我們剛才在皮膚護理方面談到的那樣，這將更加漸進。所以我們必須首先完成工廠。我們還在中國開設了一個新的臨時配送中心。我們還將擴大在中國的一些分銷足跡。因此，我想說的是，從產能的角度來看，我們需要幾年的時間才能使亞洲供應鏈全面運轉並達到滿負荷。這並不意味著，隨著我們在今年和明年逐步加快步伐，我們不會通過開始轉移這些領域的部分生產來創造更多的靈活性。但現在，考慮到系統受到的一些衝擊，我們正在努力承包一些生產。

So you are absolutely right that long term this will create agility for us. There are other things that we're doing to create agility. We've talked in the past in terms of some of the investments we've made in technology to help our -- especially in a very dynamic demand environment in order to try to forecast more accurately. I don't know that any forecasting tool would have forecasted what we experienced this past year. But certainly, as we think about all of our new innovation, all of our SKUs, new brands, et cetera, the more that we can technology enable and coordinate our inventory planning and our supply planning, the better we will have from -- experience we will have from an agility standpoint as well.

所以你說得完全正確，從長遠來看，這將為我們創造敏捷性。我們正在做其他事情來創造敏捷性。我們過去曾討論過我們在技術方面所做的一些投資，以幫助我們——特別是在一個非常動態的需求環境中，以便嘗試更準確地進行預測。我不知道有任何預測工具能夠預測我們去年所經歷的情況。但當然，當我們考慮我們所有的新創新、所有 SKU、新品牌等時，我們技術支持和協調我們的庫存計劃和供應計劃的能力越強，我們就能獲得更好的體驗。從敏捷性的角度來看，我們也會有。

So there's a tremendous amount of work that is going on to very much improve the situation going forward. Right now, we're managing just some tremendous shocks to the system that we're in the process of correcting.

因此，我們正在進行大量工作來極大地改善未來的情況。目前，我們正在應對系統受到的一些巨大衝擊，我們正在糾正這些衝擊。

And I would just want to add a bit more color to the concept that Tracey just underlined on the fact that despite this will take a couple of years to ramp up to get to the full leveraging, the benefits on agility will come as we go earlier. And the reason for that is that the agility is particularly needed on what we call the heroes SKUs. So the high-volume and the high-volume SKU, the one which can benefit more from speed to market, forecasting decisions which are closer to the moment where the market happens, the ability to produce depending on the trends. And so we will gradually ramp up, but we will ramp up first the SKUs and the brands that have the biggest need to create agility in Asia. And over time, then this will become our, as Tracey described, ongoing in a couple of years, we will have the full agility of the system implement.

我只是想為 Tracey 剛剛強調的概念添加更多色彩，儘管這需要幾年時間才能充分發揮作用，但隨著我們更早地採取行動，敏捷性的好處將會到來。原因是我們所說的英雄 SKU 特別需要敏捷性。因此，大批量和大批量的 SKU 可以從上市速度、更接近市場發生時刻的預測決策以及根據趨勢進行生產的能力中受益更多。因此，我們將逐步增加，但我們將首先增加在亞洲最需要創造敏捷性的 SKU 和品牌。隨著時間的推移，正如特雷西所描述的那樣，這將成為我們的目標，在幾年內持續進行，我們將擁有系統實施的全部敏捷性。

That concludes today's question-and-answer session.

今天的問答環節到此結束。

If you are unable to join for the entire call, a playback will be available at 1:00 p.m. Eastern Time today through September 1. To hear a recording of the call, please dial (877) 344-7529, pass code #4620398.

如果您無法加入整個通話，則可在下午 1:00 進行回放。東部時間今天至 9 月 1 日。要收聽通話錄音，請撥打 (877) 344-7529，密碼#4620398。

That concludes today's Estee Lauder conference call. I would like to thank you all for your participation, and wish you all a good day.

今天的雅詩蘭黛電話會議到此結束。我衷心感謝大家的參與，並祝大家有美好的一天。