Fortune Brands Innovations Inc (FBIN) 2024 Q2 法說會逐字稿

Good afternoon.

午安.

My name is Sachi, and I will be your conference operator today.

我叫 Sachi，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the Fortune Brands second quarter 2024 earnings conference call.

現在，我歡迎大家參加財富品牌 2024 年第二季財報電話會議。

(Operator Instructions)

（操作員說明）

I would like to turn the call over to Lee Asic, Vice President of Investor Relations and Corporate Affairs.

我想將電話轉給投資者關係和公司事務副總裁 Lee Asic。

You may begin the conference call.

您可以開始電話會議。

Good afternoon, everyone, and welcome to the Fortune Brands Innovations' second quarter earnings call.

大家下午好，歡迎參加財富品牌創新公司第二季財報電話會議。

Hopefully, everyone has had a chance to review the earnings release.

希望每個人都有機會查看收益發布。

The earnings release and the audio replay of this call can be found on the Investors section of our fbin.com website.

收益發布和本次電話會議的音訊重播可以在我們的 fbin.com 網站的投資者部分找到。

I want to remind everyone that the forward-looking statements we make on the call today, either in our prepared remarks or in the associated question-and-answer session, are based on current expectations and market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated.

我想提醒大家，我們今天在電話會議上所做的前瞻性陳述，無論是在我們準備好的發言中還是在相關的問答環節中，都是基於當前的預期和市場前景，並受到一定的風險和不確定性的影響這可能會導致實際結果與當前預期有重大差異。

These risks are detailed in our various filings with the SEC.

這些風險在我們向 SEC 提交的各種文件中有詳細說明。

The company does not undertake any obligation to update or revise any forward-looking statements, except as required by law.

除法律要求外，本公司不承擔更新或修改任何前瞻性聲明的義務。

Any references to operating profit or margin, earnings per share or free cash flow on today's call will focus on our results on a before charges and gains basis unless otherwise specified.

除非另有說明，今天電話會議中任何提及營業利潤或利潤率、每股收益或自由現金流的內容都將重點關注我們在費用和收益之前的業績。

Please visit our website for reconciliations.

請造訪我們的網站進行調節。

With me on the call today are Nick Fink, our Chief Executive Officer; and Dave Barry, our Chief Financial Officer.

今天與我一起參加電話會議的是我們的執行長 Nick Fink；以及我們的財務長戴夫·巴里 (Dave Barry)。

Following our prepared remarks, we have a lot of time to address some questions.

在我們準備好的發言之後，我們有許多時間來回答一些問題。

I will now turn the call over to Nick.

我現在將把電話轉給尼克。

Nick?

缺口？

Thanks, Leigh, and thank you to everyone for joining us today.

謝謝 Leigh，也謝謝大家今天加入我們。

On this call, I will walk through the highlights of our second quarter performance, give some color on the drivers of this performance, including progress on our digital strategy and offer some thoughts on the macro environment.

在這次電話會議上，我將介紹我們第二季業績的亮點，對這一業績的驅動因素進行一些闡述，包括我們數位化策略的進展，並提供對宏觀環境的一些想法。

I'll then turn the call over to Dave for a discussion of our financial results, including our updated full year 2024 guidance.

然後，我會將電話轉給 Dave，討論我們的財務業績，包括 2024 年更新後的全年指引。

Our teams continue to execute at a high level amidst the dynamic and uneven market and delivered solid sales and strong margin results in the second quarter.

我們的團隊在充滿活力和不平衡的市場中繼續保持高水準執行，並在第二季度實現了穩健的銷售和強勁的利潤率結果。

Our digital products portfolio saw some exciting wins this past quarter and we are seeing accelerating growth in this key market, which I will detail shortly.

我們的數位產品組合在上個季度取得了一些令人興奮的勝利，我們看到這個關鍵市場正在加速成長，我很快就會詳細介紹這一點。

The benefit of our organizational realignment continues to generate real results as evidenced by our market beating sales and margin performance this quarter.

我們的組織重組的好處繼續產生實際成果，本季超越市場的銷售和利潤表現證明了這一點。

These actions all support our position as a growth-focused company, powered by secular tailwinds, underpinned by leading brands, innovation and channel management, and fueled by our Fortune Brands Advantage capabilities.

這些行動都支持了我們作為一家以成長為重點的公司的地位，該公司由長期順風推動，以領先品牌、創新和通路管理為基礎，並由我們的財富品牌優勢能力推動。

Turning to our second quarter performance.

轉向我們第二季的業績。

Our teams delivered solid top line and strong bottom line results with areas of organic growth in our core North American market.

我們的團隊在北美核心市場的有機成長領域取得了穩健的收入和強勁的利潤結果。

Net sales of $1.2 billion were up 7% or organic sales were $1.1 billion, down 3% versus the second quarter of 2023.

淨銷售額為 12 億美元，成長 7%，有機銷售額為 11 億美元，比 2023 年第二季下降 3%。

Excluding China, which was impacted by lower sales as the Chinese consumer remained very cautious.

不包括中國，由於中國消費者仍然非常謹慎，因此受到銷售下降的影響。

Our organic sales growth was positive in the second quarter, including low single-digit growth in our Outdoors segment and Moen North America.

第二季度我們的有機銷售成長為正，其中戶外業務和摩恩北美業務實現了低個位數成長。

Looking to the remainder of 2024.

展望 2024 年剩餘時間。

We expect continued outperformance in our Moen North America and Outdoors business as well as accelerated growth in our digital portfolio.

我們預計摩恩北美和戶外業務將繼續表現出色，數位產品組合將加速成長。

Our operating income increased 9% and our operating margin was 40 basis points higher than the second quarter of 2023, bringing our year-to-date operating margin improvement to 110 basis points.

與 2023 年第二季相比，我們的營業收入成長了 9%，營業利潤率提高了 40 個基點，使我們年初至今的營業利潤率提高了 110 個基點。

Our sales and margin performance generated earnings per share of $1.16 in the second quarter, an 8% increase over the second quarter of 2023.

第二季我們的銷售和利潤率表現實現每股收益 1.16 美元，比 2023 年第二季成長 8%。

Turning first to our digital portfolio.

首先轉向我們的數位產品組合。

We saw approximately 200,000 device activations in the second quarter and the overall digital business continues to accelerate.

第二季我們看到大約 20 萬台設備被激活，整體數位業務繼續加速。

In the second quarter alone, we added around 20,000 users of our Flo Smart Water Monitor and Shutoff and retail and e-commerce point-of-sale performance far exceeded our expectations as the consumer increasingly gains awareness of this powerful product.

僅在第二季度，我們就增加了約20,000 名Flo 智慧水監測和關閉用戶，隨著消費者對這款強大產品的認識不斷增強，零售和電子商務銷售點的表現遠遠超出了我們的預期。

Perhaps even more importantly, during the second quarter, we achieved several significant milestones across our digital portfolio, which will accelerate our overall strategy.

也許更重要的是，在第二季度，我們在數位產品組合中實現了幾個重要的里程碑，這將加速我們的整體策略。

Our digital business is now expected to add over 150 basis points of organic sales growth to the second half of 2024, and which we expect to accelerate in 2025, as the newly established partnerships continue to ramp and awareness increases.

目前，我們的數位業務預計到2024 年下半年將實現超過150 個基點的自然銷售成長，並且隨著新建立的合作夥伴關係的不斷擴大和認知度的提高，我們預計這一增長將在2025年加速。

We see a path for well over $1 billion in digital sales by 2030.

我們預計到 2030 年，數位銷售額將遠遠超過 10 億美元。

We're also evolving our revenue opportunities towards data monetization and reoccurring revenue, which will provide incremental growth and further margin expansion opportunities as we continue to scale.

我們也將我們的收入機會轉向數據貨幣化和經常性收入，這將隨著我們繼續擴大規模而提供增量成長和進一步利潤率擴張的機會。

First, we announced key partnerships with several large insurance companies this quarter, including entering into a nationwide agreement with Farmers Insurance to provide Flo Smart Water Monitor and Shutoff devices to their customers.

首先，我們本季宣布與幾家大型保險公司建立重要合作夥伴關係，包括與 Farmers Insurance 簽訂全國性協議，為其客戶提供 Flo 智慧水監測器和關閉設備。

Under this agreement, Moen is providing farmers policyholders a bundled product and installation solution supported by dedicated infrastructure, which will allow policyholders to save money on their premiums.

根據該協議，摩恩將為農民保單持有人提供由專用基礎設施支援的捆綁產品和安裝解決方案，這將使保單持有人節省保費。

This agreement will be especially impactful in states like California, where farmers and other insurers are now requiring a significant number of new and renewing policyholders to equip their homes with an in-line leak detection system.

該協議在加州等州尤其具有影響力，那裡的農民和其他保險公司現在要求大量新保單持有人和續保保單持有人為他們的房屋配備線上洩漏檢測系統。

After this new requirement went into effect, Farmers sought out a partner to create a seamless customer experience for the purchase, installation and support of an In-Line Water Monitor and Shutoff device.

這項新要求生效後，Farmers 尋找合作夥伴，為線上水監測器和關閉設備的購買、安裝和支援創造無縫的客戶體驗。

Moen won this precedent setting opportunity because of our exceptional product, ability to deliver last mile installation at a national scale and our brand's reputation for quality, service and innovation.

摩恩憑藉我們卓越的產品、在全國範圍內提供最後一英里安裝的能力以及我們的品牌在品質、服務和創新方面的聲譽，贏得了這一開創先例的機會。

Importantly, we were also selected as the Partner of Choice because of our ability to scale our supply chain as this opportunity grows, and we are already preparing for rapidly accelerating growth.

重要的是，我們也被選為首選合作夥伴，因為我們有能力隨著這個機會的成長而擴展我們的供應鏈，我們已經為快速成長做好了準備。

In addition to Farmers Insurance, this past quarter alone, we have signed three other agreements with insurance companies where the providers will promote the use of our Flo in connection with sizable policy rate reductions for their policyholders.

除了 Farmers Insurance 之外，僅在上個季度，我們就與保險公司簽署了另外三項協議，保險公司將推廣使用我們的 Flo，為其保單持有人大幅降低保單利率。

Our pipeline of insurance discussions is robust, and we expect further progress throughout the year.

我們的保險討論管道十分強勁，我們預計全年將取得進一步進展。

In June, we also announced an agreement with the California water efficiency partnership, which will help us raise awareness of Flo directly with municipalities and residents across California and will facilitate government rebates of our Flo devices.

6 月，我們也宣布與加州節水合作夥伴達成協議，這將幫助我們直接提高加州各市政府和居民對 Flo 的認識，並促進政府對我們的 Flo 設備進行回扣。

As water scarcity becomes a major concern in California and beyond, we expect this partnership will help accelerate both sales and awareness of Flo and serve as a template for other similar partnerships across the United States.

隨著水資源短缺成為加州及其他地區的一個主要問題，我們預計這項合作關係將有助於加速 Flo 的銷售和知名度，並為美國各地其他類似合作夥伴關係提供模板。

In addition to the added expected revenue and exposure to our products, these agreements are important because they prove we can help enable the insurance industry to mitigate risks and issue cost-effective policies as they face a crisis of rising costs.

除了增加預期收入和我們產品的曝光度之外，這些協議也很重要，因為它們證明我們可以幫助保險業在面臨成本上升危機時降低風險並發布具有成本效益的保單。

In doing so, we can also help their customers save money and avoid disruption by preventing catastrophic water damage.

在此過程中，我們還可以幫助他們的客戶節省資金，並透過防止災難性的水損害來避免中斷。

And of course, these partnerships benefit our communities and environment by reducing wasted water and energy.

當然，這些夥伴關係透過減少水資源和能源浪費，使我們的社區和環境受益。

Finally, enacting agreements like the one with Farmers Insurance or California water efficiency partnership, requires us to quickly and effectively work across our full organization from our sales and marketing teams to our connected products group to our supply chain and digital teams.

最後，制定像與農民保險或加州節水合作夥伴關係這樣的協議，要求我們在整個組織中快速有效地工作，從我們的銷售和行銷團隊到我們的互聯產品團隊，再到我們的供應鏈和數位團隊。

These agreements are yet more proof points of how Fortune Brands Innovations new organizational structure is enabling us to capture opportunities at an accelerated rate.

這些協議進一步證明了 Fortune Brands Innovations 新的組織結構如何使我們能夠更快地抓住機會。

In addition to our agreements centred on smart water leak detection, we also recently announced a minority investment and strategic partnership with Value Hybrid, a leading software startup focused on the delivery of connected lockout tagout solutions.

除了以智慧漏水偵測為中心的協議外，我們最近還宣布了與 Value Hybrid 的少數股權投資和策略合作夥伴關係，Value Hybrid 是一家專注於提供連網上鎖掛牌解決方案的領先軟體新創公司。

This partnership will expedite Master Lock's ability to bring to market new and innovative products in the emerging field of connected lockout tagout and expand our leadership position in commercial safety solutions.

此次合作將加速瑪斯特鎖在連網上鎖掛牌新興領域將新型創新產品推向市場的能力，並擴大我們在商業安全解決方案領域的領導地位。

Connected lockout tagout is a significant and attractive opportunity for Fortune Brands.

互聯上鎖掛牌對於 Fortune Brands 來說是一個重要且有吸引力的機會。

Given our highly recognized Master Lock brand, large installed base and lockout tagout expertise, we are very well positioned to convert mechanical lockout tagout systems to connected lockout tagout solutions and grow the addressable market.

鑑於我們高度認可的瑪斯特鎖品牌、龐大的安裝基礎和上鎖掛牌專業知識，我們完全有能力將機械上鎖掛牌系統轉換為聯網上鎖掛牌解決方案，並擴大目標市場。

We estimate that the global addressable market for connected lockout tagout is around $3 billion is keeping associates safe is an increasing key priority for manufacturers and regulatory agencies across the globe.

我們估計，連網上鎖掛牌的全球潛在市場約為 30 億美元，確保員工安全已成為全球製造商和監管機構日益關注的首要任務。

And finally, we are excited to announce that we recently entered into a new partnership with ADT.

最後，我們很高興地宣布我們最近與 ADT 建立了新的合作關係。

Under this agreement, the Yale Assure Lock 2 collection will be the preferred smart lock for ADT customers across the country.

根據該協議，耶魯Assure Lock 2系列將成為全國ADT客戶的首選智慧鎖。

The lock collection will be compatible with the ADT security platform, including the ADT+ app, within which ADT will launch a new feature called Trusted Neighbor.

該鎖系列將與ADT安全平台相容，包括ADT+應用程序，ADT將在其中推出一項名為「Trusted Neighbor」的新功能。

This innovation allows customers to seamlessly grant trusted individuals secure and temporary access to their homes through either scheduled access or in the case of events by leveraging capabilities of connected home devices including Yale Smart Locks.

這項創新使客戶能夠透過計劃存取或在發生事件時利用耶魯智慧鎖等連網家庭設備的功能，無縫地向受信任的個人授予安全和臨時的家庭存取權限。

Once again, this agreement is a great example of the potential of our connected product portfolio as we are increasingly exploring new channels and distribution partners to accelerate growth.

隨著我們越來越多地探索新的通路和分銷合作夥伴以加速成長，這項協議再次證明了我們互聯產品組合的潛力。

These are just some of the many examples of how our digital portfolio is expanding and I am encouraged and excited by our unique right to win in this exceptionally high-growth space.

這些只是我們的數位產品組合如何擴展的眾多例子中的一部分，我對我們在這個異常高成長的領域中獲勝的獨特權利感到鼓舞和興奮。

While we cannot predict the exact timing or trajectory of our digital products.

雖然我們無法預測我們的數位產品的確切時間或軌跡。

We believe periods of exponential growth will be preceded by key milestones like the ones we saw this past quarter.

我們相信，在指數增長時期之前，將會出現一些關鍵里程碑，就像我們上個季度看到的那樣。

These milestones are significant, not just for the revenue that they are expected to bring in, but also because they represent key foundational steps in our journey toward widespread adoption of our products.

這些里程碑意義重大，不僅因為它們預計帶來的收入，還因為它們代表了我們產品廣泛採用過程中的關鍵基礎步驟。

Our results this quarter and the exciting developments that we are seeing give me full confidence in Fortune Brands Innovation's ability to deliver growth and sustain value creation through the cycle.

我們本季的業績以及我們所看到的令人興奮的發展讓我對財富品牌創新在整個週期中實現成長和維持價值創造的能力充滿信心。

And we remain committed to achieving our long-term goals.

我們仍然致力於實現我們的長期目標。

Turning now to some additional thoughts on the current housing market and the market for our products.

現在談談對當前房地產市場和我們產品市場的一些額外想法。

On a macro level, favorable long-term housing fundamentals remain in place with the need for housing remaining strong.

從宏觀層面來看，有利的長期住房基本面依然存在，住房需求依然強勁。

Home prices largely holding steady and equity levels remaining high.

房價基本上保持穩定，股票水準仍然很高。

Importantly, inflation appears to be easing and the likelihood that the Fed will lower interest rates in the coming months is increasing.

重要的是，通膨似乎正在放緩，聯準會在未來幾個月降息的可能性正在增加。

However, we are aware of offsetting factors in the very near term, including consumer confidence and continued affordability challenges.

然而，我們意識到近期的抵銷因素，包括消費者信心和持續的負擔能力挑戰。

We expect many of these macro trends will inflect positively soon, and until we see tangible evidence of improvement, we will continue to manage the business tightly.

我們預計這些宏觀趨勢中的許多將很快產生積極影響，在我們看到切實的改善證據之前，我們將繼續嚴格管理業務。

Looking at our products specifically, we believe that we are well positioned.

具體看看我們的產品，我們相信我們處於有利地位。

We have strong brands in categories where brands and innovation matter.

我們在品牌和創新至關重要的領域擁有強大的品牌。

Most of our brands do not play in opening price points, which tend to be more sensitive to pricing pressures.

我們的大多數品牌都不參與開放價格點，這往往對定價壓力更加敏感。

And finally, we are strong with the Pro and Pro led projects have held up better than DIY.

最後，我們對 Pro 很強大，而且 Pro 主導的專案比 DIY 的表現更好。

Turning to new construction, single-family new construction remains strong and large production builders remain optimally positioned to continue to be able to address the need for housing.

談到新建建築，單戶新建建築依然強勁，大型生產建築商仍處於最佳位置，能夠持續滿足住房需求。

And we are a trusted partner to a very significant number of these homebuilders.

我們是許多住宅建築商值得信賴的合作夥伴。

This quarter, we continued to see encouraging growth in our products, which serve the single-family new construction channel, including Moen and Therma-Tru.

本季度，我們繼續看到我們的產品出現令人鼓舞的成長，這些產品服務於單戶新建建築管道，包括摩恩和 Therma-Tru。

We expect this tailwind to remain through 2024, as builders complete their starts.

我們預計隨著建築商完成開工，這種順風將持續到 2024 年。

Turning to R&R.

轉向 R&R。

Consistent with what we anticipated, the R&R market has stabilized, but at a level still below prior year and we expect R&R market to remain dynamic throughout 2024.

與我們的預期一致，R&R 市場已經穩定，但仍低於去年水平，我們預計 R&R 市場在 2024 年將保持活力。

However, there are some positive leading indicators in the R&R space.

然而，R&R 領域存在一些積極的領先指標。

Google Search results show that search terms around home renovations are once again up versus a year ago, indicating the continued interest in our products with particularly high increases in searches around connected home products.

Google 搜尋結果顯示，與一年前相比，有關家居裝修的搜尋字詞再次上升，這表明人們對我們的產品持續感興趣，尤其是有關連網家居產品的搜尋量增幅特別大。

Existing home sales, while not a major driver of our R&R sales are expected to improve versus the continued softness we have seen year-to-date.

成屋銷售雖然不是我們 R&R 銷售的主要動力，但預計與今年迄今持續疲軟的情況相比，將會有所改善。

Finally, as interest rates received HELOC loans may be increasingly utilized as they enable consumers to leverage high equity levels to make significant upgrades to their homes.

最後，隨著 HELOC 貸款的利率可能會被越來越多地利用，因為它們使消費者能夠利用高資產水準對他們的房屋進行重大升級。

The market in China continues to remain challenged.

中國市場仍面臨挑戰。

As a reminder, the impact is isolated and independent from the rest of the portfolio and the China business provides attractive optionality for growth and innovation.

需要提醒的是，這種影響是孤立的，獨立於投資組合的其他部分，中國業務為成長和創新提供了有吸引力的選擇。

We continue to replatform the business and will be well prepared for R&R led growth once the market recovers.

我們將繼續重組業務平台，並將在市場復甦後為 R&R 主導的成長做好充分準備。

We believe that our brands and products are well positioned to outperform, including in the current dynamic and uneven macro environment.

我們相信，我們的品牌和產品處於領先地位，包括在當前充滿活力且不平衡的宏觀環境中。

We saw examples of growth in many core and new product areas and we will take advantage of the current period to further align our business behind those areas with higher growth opportunities, including investing in a key set of strategic priorities, while also continuing to optimize our business to be even more agile and efficient.

我們在許多核心和新產品領域看到了成長的例子，我們將利用當前時期進一步調整我們的業務，以支持那些具有更高成長機會的領域，包括投資於一系列關鍵的策略重點，同時繼續優化我們的業務業務更加敏捷和有效率。

Turning now to our individual business results.

現在轉向我們個人的業務成果。

Starting with Water Innovations, this segment delivered 7% sales growth versus the prior year quarter, with organic sales down 5%, while generating 10 basis points of operating margin improvement.

從 Water Innovations 開始，該部門的銷售額與去年同期相比增長了 7%，有機銷售額下降了 5%，同時營業利潤率提高了 10 個基點。

Excluding China, our Water segment saw excellent performance in an uneven market with organic sales up low single-digits, led by Moen North America.

除中國外，我們的水業務部門在參差不齊的市場中取得了出色的業績，在摩恩北美公司的帶領下，有機銷售額增長了低個位數。

Our core Moen business continues to outperform the market and take share, particularly in our wholesale business.

我們的核心摩恩業務繼續跑贏市場並佔據市場份額，特別是在我們的批發業務方面。

Recent consumer brand metrics data indicate that we continue to be the highest rated brand for both quality and innovation.

最近的消費者品牌指標數據表明，我們仍然是品質和創新方面評價最高的品牌。

Our point-of-sale from Moen North America saw impressive mid-single-digit growth with all channels showing growth, outperforming a larger market for our products, which we believe was down low single-digits.

我們來自摩恩北美的銷售點實現了令人印象深刻的中個位數成長，所有通路均呈現成長，表現優於我們產品的更大市場，我們認為該市場已下降了低個位數。

Our strong relationships with the largest production national homebuilders are expected to be a tailwind for the Moen business throughout the remainder of 2024 and beyond.

我們與最大的全國性住宅建築商的牢固關係預計將在 2024 年剩餘時間及以後成為摩恩業務的推動力。

Our US luxury business again performed well as the luxury consumer remains more resilient.

由於奢侈品消費者仍然更具彈性，我們的美國奢侈品業務再次表現良好。

Our House of Rohl brand is number one with designers in awareness and consideration, and brand perception data indicates that we also lead our peers for luxury, trust and innovation.

我們的 House of Rohl 品牌在設計師的認知度和考慮度方面排名第一，品牌認知數據表明我們在奢華、信任和創新方面也領先於同行。

Our point-of-sale for our House of Rohl business was roughly flat year-over-year versus a market which we believe was down mid-single-digits.

我們的 House of Rohl 業務的銷售點比去年同期大致持平，而我們認為市場下降了中個位數。

We are now one year into our acquisition of Emtek and the work to integrate the brand into our comprehensive and complementary luxury portfolio, including showrooms is progressing very well.

我們收購 Emtek 已經一年了，將品牌整合到我們全面且互補的奢侈品產品組合（包括陳列室）中的工作進展順利。

As I mentioned earlier, Flo by Moen continues to gain traction with insurance companies, municipalities and consumers.

正如我之前提到的，Flo by Moen 繼續受到保險公司、市政當局和消費者的青睞。

While the new insurance and municipality partnerships are beginning to ramp up, our retail and e-commerce point-of-sale accelerated 130% in the second quarter, highlighting the continued adoption by consumers.

雖然新的保險和市政合作夥伴關係開始加強，但我們的零售和電子商務銷售點在第二季加速了 130%，凸顯了消費者的持續採用。

We expect sales of our connected water business to accelerate through the back half of 2024.

我們預計到 2024 年下半年，我們的連網水務業務的銷售將加速。

Finally, China sales were down more than 35% this quarter as the Chinese consumer remains cautious.

最後，由於中國消費者仍持謹慎態度，本季中國銷售額下降了 35% 以上。

Our team in China has done an excellent job managing costs and margins.

我們在中國的團隊在成本和利潤管理方面做得非常出色。

Looking to the remainder of 2024, we expect our Water segment to continue to execute on our commitment to deliver above-market sales performance by focusing on those parts of the market with the greatest potential for growth.

展望 2024 年剩餘時間，我們預期水業務部門將繼續履行我們的承諾，透過專注於最具成長潛力的市場部分，實現高於市場的銷售業績。

We plan to continue to make thoughtful investments in our key priorities, including branding and digital initiatives.

我們計劃繼續對我們的關鍵優先事項進行深思熟慮的投資，包括品牌和數位計劃。

We remain very excited about our water business, particularly the opportunities we see to capture growth in digital, luxury and water filtration.

我們對水務業務仍然感到非常興奮，尤其是我們看到的數位化、奢侈品和水過濾領域成長的機會。

Turning to Outdoors.

轉向戶外。

We had a strong second quarter with 4% sales growth and operating margins that improved sequentially over 420 basis points.

我們第二季業績強勁，銷售額成長 4%，營業利潤率較上季提高 420 個基點以上。

We continue to focus on leveraging our expertise and investing behind our core categories and in those areas, which we expect will offer the most attractive growth opportunities.

我們繼續專注於利用我們的專業知識並在我們的核心類別和這些領域進行投資，我們預計這些領域將提供最具吸引力的成長機會。

Outdoors business has exposure to many key secular growth tailwinds including material conversion in our fiberglass and composite decking businesses.

戶外業務面臨許多關鍵的長期成長順風，包括我們的玻璃纖維和複合地板業務的材料轉換。

Outdoor Living and even luxury as we increasingly integrate our solar innovations technology and our Emtek products into Outdoors.

隨著我們越來越多地將太陽能創新技術和 Emtek 產品融入戶外，戶外生活甚至奢華。

Outdoors brands delivered mid-single-digit sales growth as tailwinds from new construction and recent retail wins continued to drive sales.

由於新建築和近期零售勝利的推動繼續推動銷售，戶外品牌實現了中個位數的銷售成長。

Therma-Tru continues to see the benefit of the increase in starts and completions, which began last year and Larson is seeing nice performance as we begin to see the benefits of new innovation.

Therma-Tru 繼續看到從去年開始的開工和竣工數量增加帶來的好處，隨著我們開始看到新創新的好處，Larson 也看到了良好的業績。

Decking sales were up low single-digits in the quarter, and once again, a Fiberon business is a great proof point of the power of our strong wholesale channel relationships.

本季地板銷售額成長了個位數，Fiberon 業務再次有力地證明了我們強大的批發通路關係的力量。

Like our leading Therma-Tru business, our Fiberon business, has a strong conversion story backed up by strength with the Pro and the Fortune Brands expertise in multichannel distribution.

與我們領先的 Therma-Tru 業務一樣，我們的 Fiberon 業務也擁有強大的轉型故事，並以 Pro 和 Fortune Brands 在多通路分銷方面的專業知識為後盾。

We are seeing encouraging brand metrics, especially with the Pro and continue to be excited by the ability of this product to harness the powerful secular tailwinds of material conversion, sustainability and outdoor living.

我們看到了令人鼓舞的品牌指標，尤其是 Pro，並且繼續對該產品利用材料轉換、永續性和戶外生活的強大長期推動力的能力感到興奮。

Finally, turning to our Security business.

最後，轉向我們的安全業務。

Our Security segment grew sales 12% in the quarter, and was down high single-digits on an organic basis, primarily due to continuing softness of consumers in retail and e-commerce.

我們的安全部門本季銷售額成長了 12%，但有機下降了高個位數，這主要是由於零售和電子商務消費者持續疲軟。

Encouragingly, we saw improving point-of-sale as the quarter progressed.

令人鼓舞的是，隨著本季的進展，我們看到銷售點有所改善。

The segment also saw 330 basis points of operating margin improvement, inclusive of the technology investments in the Yale and August residential smart lock brands.

該部門的營業利潤率也提高了 330 個基點，其中包括對 Yale 和 August 住宅智慧鎖品牌的技術投資。

As the work we did around continuous improvement and supply chain continues to payoff.

我們圍繞著持續改進和供應鏈所做的工作不斷獲得回報。

Our Master Lock brand is incredibly strong and we believe our recent organizational redesign will allow us to further strengthen this powerhouse brand.

我們的瑪斯特鎖品牌非常強大，我們相信我們最近的組織重新設計將使我們能夠進一步加強這個強大的品牌。

Finally, our Master Lock's Security business is now around one-third industrial and commercial and we have developed a niche in the critical and growing remote access portable security space across the globe.

最後，我們瑪斯特鎖的安全業務目前約佔工業和商業領域的三分之一，並且我們已經在全球關鍵且不斷增長的遠端存取便攜式安全領域開發了一個利基市場。

We are proud of how our business is helping companies around the world to protect their people and their assets.

我們為我們的業務如何幫助世界各地的公司保護其人員和資產而感到自豪。

As we accelerate our leadership in connected industrial security for our lockout tagout investments, we expect this portion of the business to see future outsized growth.

隨著我們透過上鎖掛牌投資加快在互聯工業安全領域的領先地位，我們預計這部分業務未來將大幅成長。

Over the past few years, we have evolved from mechanical only products into innovative and growth-oriented businesses with a much more strategic portfolio.

在過去的幾年裡，我們已經從單純的機械產品發展成為具有更具策略性的產品組合的創新和成長型企業。

We will reinvest the efficiencies gained from our recent optimization of the business to leverage strong secular trends like digital products and safety.

我們將把最近業務優化所獲得的效率進行再投資，以利用數位產品和安全等強大的長期趨勢。

As a result of our new aligned structure, we have substantially improved the segment's supply chain and sourcing capabilities, accelerated our branding work and have made significant progress in building our digital security portfolio.

由於我們新的一致結構，我們大大改善了該部門的供應鏈和採購能力，加速了我們的品牌工作，並在建立我們的數位安全產品組合方面取得了重大進展。

A year into the acquisition of Yale and August, we are delighted with these accelerants to our business.

在收購耶魯大學和 August 一年後，我們對這些對我們業務的促進劑感到高興。

In addition to being great assets, which we acquired at a very attractive price, we continue to be impressed by the strength of their teams in key areas, including digital.

除了我們以極具吸引力的價格收購的優質資產之外，他們的團隊在包括數字在內的關鍵領域的實力也給我們留下了深刻的印象。

We are utilizing their skills and knowledge throughout the business and their expertise is being deployed across our portfolio as we continue to accelerate our digital strategies.

我們在整個業務中利用他們的技能和知識，隨著我們繼續加速我們的數位策略，他們的專業知識也被部署到我們的產品組合中。

In 2022, our digital security sales comprised just 2% of the segment's sales.

2022 年，我們的數位安全銷售額僅佔該細分市場銷售額的 2%。

This past quarter, they represented close to 20% of security sales and we see a pathway to over 40% of this segment sales coming from digital products as we continue to convert mechanical products, the digital products and explore new-to-world technology in our spaces.

上個季度，它們佔安全銷售額的近 20%，隨著我們繼續轉換機械產品、數位產品並探索新的世界技術，我們看到該細分市場超過 40% 的銷售額將來自數位產品。的空間。

As we turn to the second half of 2024, we remain fully confident in Fortune Brands' ability to deliver above-market growth, drive margin improvement and continue the acceleration of our digital portfolio.

展望 2024 年下半年，我們對 Fortune Brands 實現高於市場水平的成長、推動利潤率改善並繼續加速我們的數位產品組合的能力充滿信心。

Looking at our end markets, US single-family new construction and luxury continue to be tailwinds.

看看我們的終端市場，美國單戶新建築和豪華住宅繼續成為推動因素。

R&R has firmed, though not yet improving year-over-year and China is weaker than expected as the push to complete homes has ended and the Chinese consumer remains cautious.

儘管尚未同比改善，但 R&R 已趨於堅挺，而且由於完工住宅的推動已經結束且中國消費者仍保持謹慎態度，中國的情況弱於預期。

We continue to lead through the current environment well.

我們繼續在當前環境中保持領先。

While still investing in critical priorities like our digital strategy and our brands and innovations.

同時仍投資於我們的數位策略、品牌和創新等關鍵優先事項。

To recap, in the second quarter, we executed our priorities of focusing on the core and accelerating digital products and delivered impressive organic growth in our core Moen North America and Outdoors businesses.

回顧一下，第二季度，我們執行了專注於核心和加速數位產品的優先事項，並在我們的核心摩恩北美和戶外業務中實現了令人印象深刻的有機成長。

In doing so, we delivered solid sales and strong margin results.

透過這樣做，我們實現了穩健的銷售和強勁的利潤率結果。

We will continue to strategically manage the business in light of the uneven market backdrop, and we'll focus on those areas where we have the greatest potential for above-market growth while continuing to make margin improvements.

我們將繼續根據不平衡的市場背景對業務進行策略管理，並將重點放在那些最有潛力實現高於市場成長的領域，同時繼續提高利潤率。

By taking decisive actions now, I believe we will be best positioned for accelerated growth when external market conditions improve.

透過現在採取果​​斷行動，我相信，當外部市場條件改善時，我們將處於加速成長的最佳位置。

I will now turn the call over to Dave.

我現在將把電話轉給戴夫。

Thanks, Nick.

謝謝，尼克。

As a reminder, my comments will focus on income before charges and gains to best reflect ongoing business performance.

提醒一下，我的評論將重點放在收費前收入和收益，以最好地反映持續的業務績效。

Additionally, comparisons will be made against the same period last year, unless otherwise noted.

此外，除非另有說明，否則將與去年同期進行比較。

Let me start with our second quarter results.

讓我從第二季的業績開始。

As Nick highlighted, our teams delivered solid sales and strong margin results amidst the dynamic external environment.

正如尼克所強調的那樣，我們的團隊在動態的外部環境中實現了穩健的銷售和強勁的利潤表現。

We remain well prepared for any macro environment and are positioned for future growth as we focus on our core and accelerate digital while continuing to generate cash and make key strategic investments.

我們為任何宏觀環境做好了充分準備，並為未來的成長做好了準備，因為我們專注於核心業務並加速數位化，同時繼續產生現金並進行關鍵策略投資。

In the second quarter, sales were $1.2 billion, up 7% and down 3% excluding acquisitions.

第二季銷售額為 12 億美元，成長 7%，不包括收購則下降 3%。

Organic sales, excluding China, grew 1%.

有機銷售額（不包括中國）成長了 1%。

Consolidated operating income was $216 million, up 9%.

綜合營業收入為 2.16 億美元，成長 9%。

Total company operating margin improved 40 basis points to 17.4% and earnings per share were $1.16, an 8% increase versus last year.

該公司總營業利潤率提高了 40 個基點，達到 17.4%，每股收益為 1.16 美元，比去年增長 8%。

Our second quarter sales performance was driven by US POS growth in Water and Outdoors as well as digital products, offset by POS declines in security and China softness.

我們第二季的銷售業績受到美國 POS 在水和戶外以及數位產品方面的成長推動，但被 POS 在安全性和中國疲軟方面的下降所抵消。

Let me provide more color on our segment results.

讓我為我們的細分結果提供更多資訊。

Beginning with Water Innovations, sales were $660 million, up $43 million or 7% and down 5%, excluding the impact of acquisitions.

從 Water Innovations 開始，銷售額為 6.6 億美元，成長 4,300 萬美元，或 7%，下降 5%（不包括收購的影響）。

Excluding China, organic sales were up low single-digits.

不包括中國，有機銷售額成長了低個位數。

Importantly, our organic sales results reflect mid-single-digit Moen North America POS growth.

重要的是，我們的有機銷售業績反映了摩恩北美 POS 的中個位數成長。

China sales declined more than 35% as the Chinese consumer remain cautious.

由於中國消費者保持謹慎態度，中國銷售額下降了 35% 以上。

As a reminder, our results this quarter also reflect the impact of lapping last year's project completions.

提醒一下，我們本季的業績也反映了去年專案完成的影響。

We continue to replatform the business toward an increasingly R&R led market, so that we are prepared for growth when the market recovers.

我們繼續將業務平台重新調整為日益以 R&R 為主導的市場，以便我們為市場復甦時的成長做好準備。

Water Innovations operating income was $153 million, an increase of 7%.

Water Innovations 營業收入為 1.53 億美元，成長 7%。

Operating margin was 23.3%, an increase of 10 basis points, and we expect to continue to make sequential margin improvement through the second half of 2024.

營業利益率為 23.3%，成長 10 個基點，我們預期利潤率將在 2024 年下半年持續達到季比改善。

Turning to Outdoors.

轉向戶外。

Sales were $389 million, up 4%, driven by growth in both doors and decking.

受門和地板銷售成長的推動，銷售額達 3.89 億美元，成長 4%。

Door sales increased mid-single-digits.

門銷量成長了中個位數。

Sales were supported by higher volumes at Therma-Tru, driven by the increase in single-family new construction and recent retail placement wins.

Therma-Tru 的銷售量受到單戶新建建築增加和近期零售佈局勝利的推動，銷售增長得到支撐。

Decking sales were up low single-digits, driven by continued strength in wholesale and partially offset by anticipated declines in retail.

在批發持續強勁的推動下，地板銷售額出現低個位數成長，但部分被零售預期下降所抵銷。

Our results this quarter reflect our ongoing strategic approach of focusing on those core categories in which we expect to have the best opportunities to achieve long-term above-market growth and profitability.

我們本季的業績反映了我們持續的策略方針，即專注於那些我們預計將有最佳機會實現長期高於市場成長和獲利能力的核心類別。

Outdoors segment operating income was $63 million, up 3%.

戶外部門營業收入為 6,300 萬美元，成長 3%。

Segment operating margin was 16.3%, down 10 basis points.

部門營業利益率為 16.3%，下降 10 個基點。

We expect Outdoor's second half operating margins to average around 15.5% and improved sequentially, as favorable production costs hung up in inventory will flow through the P&L.

我們預計戶外用品下半年的平均營業利潤率將在 15.5% 左右，並且將持續改善，因為庫存中的有利生產成本將流經損益表。

In Security, our second quarter sales increased 12%.

在安全領域，我們第二季的銷售額成長了 12%。

Organic sales decreased 7%, reflecting soft POS particularly in retail and e-commerce.

有機銷售額下降 7%，反映了 POS 軟化，尤其是零售和電子商務領域。

Our POS trends improved in late June and early July, giving us confidence in our full year outlook.

我們的 POS 趨勢在 6 月底和 7 月初有所改善，這讓我們對全年前景充滿信心。

We continue to see momentum in the categories we have identified as having higher growth potential such as Master Lock commercial and our digital Master Lock and Yale products.

我們繼續看到我們認為具有較高成長潛力的類別的勢頭，例如瑪斯特鎖商業產品以及我們的數位瑪斯特鎖和耶魯產品。

Segment operating income was $36 million, up 36% and segment operating margin was 18.9%, an increase of 330 basis points.

分部營業收入為 3,600 萬美元，成長 36%，分部營業利益率為 18.9%，成長 330 個基點。

Our organic operating margins were greater than 21% with over 500 basis points of improvement over last year, driven by continuous improvement initiatives.

在持續改善措施的推動下，我們的有機營運利潤率超過 21%，比去年提高了 500 個基點。

As we have discussed previously, we think our Security segment is a great example of the power of our Fortune Brands advantage capabilities and we expect great things from this business.

正如我們之前所討論的，我們認為我們的安全部門是我們財富品牌優勢能力的一個很好的例子，我們期望從這項業務中取得偉大的成果。

Turning to the balance sheet.

轉向資產負債表。

Our balance sheet remains solid with cash of $353 million, net debt of $2.5 billion and our net debt-to-EBITDA leverage is 2.6 times.

我們的資產負債表依然穩健，現金為 3.53 億美元，淨負債為 25 億美元，淨負債與 EBITDA 的槓桿比率為 2.6 倍。

We remain on track to achieve our target net leverage ratio of around 2.25 times by year-end.

我們仍有望在年底前實現淨槓桿約 2.25 倍的目標。

We have $1 billion available under our revolver.

我們的左輪手槍下有 10 億美元的可用資金。

In the second quarter, we returned $85 million to shareholders via a combination of share repurchases and dividends, including $55 million of share repurchases.

第二季度，我們透過股票回購和股利結合的方式向股東返還了 8,500 萬美元，其中包括 5,500 萬美元的股票回購。

As of today, we have repurchased $190 million of shares this year.

截至今天，我們今年已回購了價值 1.9 億美元的股票。

Our second quarter free cash flow was $223 million, exceeding our expectations.

我們第二季的自由現金流為 2.23 億美元，超出了我們的預期。

To summarize the quarter, we delivered solid sales and strong margin results and are on the path of delivering our full year commitments to grow sales above market, expand our margins and generate cash.

總結本季度，我們實現了穩健的銷售和強勁的利潤率業績，並且正在兌現我們的全年承諾，即使銷售額高於市場水平，擴大利潤率並產生現金。

We are pleased with our first half performance while being aware of the dynamic macro environment.

我們對上半年的表現感到滿意，同時意識到動態的宏觀環境。

And as you saw in our earnings release, we have updated our full year guidance to reflect our current view of market conditions, including a stronger US single-family new construction market and strength in our digital businesses, offset by a weaker market in China.

正如您在我們的財報中看到的那樣，我們更新了全年指引，以反映我們當前對市場狀況的看法，包括美國單戶新建建築市場的強勁和我們數位業務的實力，但被中國市場疲軟所抵消。

Importantly, we are narrowing the range around our prior EPS midpoint as growth in our core businesses, acceleration of our digital products and margin delivery gives us confidence in our ability to deliver these results.

重要的是，我們正在縮小先前每股收益中點附近的範圍，因為我們核心業務的成長、數位產品的加速和利潤交付使我們對實現這些結果的能力充滿信心。

For the remainder of 2024, we now expect the global market for our products to be down 3% to down 1%, with the US market down 1% to flat.

在 2024 年剩餘時間內，我們預計我們產品的全球市場將下降 3% 至 1%，其中美國市場將下降 1% 至持平。

Within this market forecast, we expect US R&R down 4% to down 3%.

在這一市場預測中，我們預計美國 R&R 將下降 4% 至 3%。

US single-family new construction to be up between 8% and 10%, with starts up high single-digits and completions up low single-digits.

美國單戶住宅新建量將成長 8% 至 10%，其中開工量增幅為高個位數，竣工量增幅為低個位數。

And the China market for our products to be down 20% to down 15%.

而中國市場我們的產品要下降20%到15%。

Within this backdrop, we now expect full year Fortune Brands sales to increase 2.5% to 4.5% and organic sales to be down 2% to flat.

在此背景下，我們目前預計 Fortune Brands 全年銷售額將成長 2.5% 至 4.5%，有機銷售額將下降 2% 至持平。

This revised figure reflects continued strength in our core North American businesses, including Moen and Therma-Tru, strengthen our luxury business, the benefit of our SpringWell acquisition and an accelerating digital business offset by China.

這項修訂後的數字反映了我們在北美的核心業務（包括摩恩和Therma-Tru）的持續強勁，加強了我們的奢侈品業務，收購SpringWell 的好處以及中國數位業務的加速成長所抵消的影響。

We now expect our full year operating margins to be between 17% and 17.5%, the midpoint of which is 125 basis points above full year 2023.

我們現在預計全年營業利潤率將在 17% 至 17.5% 之間，其中中點比 2023 年全年高 125 個基點。

We are confident in our ability to hit our margin guidance and have good line of sight to a number of productivity initiatives, which will benefit our margins across the second half, particularly in our Outdoors and Water segments.

我們對達到利潤指引的能力充滿信心，並對許多生產力計劃有良好的視野，這將有利於我們下半年的利潤，特別是在我們的戶外和水上領域。

Our commodity costs are largely set with relatively small exposure to freight volatility and we expect to remain price cost favorable for the full year.

我們的商品成本在很大程度上是在運費波動性相對較小的情況下確定的，我們預計全年價格成本將保持有利。

Based on our revised guidance, looking to the second half of the year, we expect slightly positive sales growth with operating margins of around 18%.

根據我們修訂後的指引，展望今年下半年，我們預期銷售將出現小幅正成長，營業利潤率約 18%。

As a reminder, we closed on our Yale, August and Emtek acquisition in June of last year and the performance of those brands will be included in our second half organic results.

提醒一下，我們在去年 6 月完成了對 Yale、August 和 Emtek 的收購，這些品牌的業績將納入我們下半年的有機業績中。

To sum up, our teams delivered a first half of the year ahead of plan and will remain focused on the execution of our key priorities.

總而言之，我們的團隊提前完成了上半年的計劃，並將繼續專注於執行我們的關鍵優先事項。

I am increasingly excited about the opportunities ahead of us as our business transformation continues to accelerate.

隨著我們的業務轉型不斷加速，我對我們面前的機會越來越感到興奮。

I will now pass the call back to Leigh to open the call for questions.

我現在將把電話轉回 Leigh 以開始提問。

Leigh?

利？

Thanks, Dave.

謝謝，戴夫。

That concludes our prepared remarks.

我們準備好的演講到此結束。

We will now begin taking a limited number of questions.

我們現在將開始回答有限數量的問題。

Since there may be a number of you who would like to ask a question, I will ask that you limit your initial questions to two and then reenter the queue to ask additional questions.

由於可能有很多人想提問，我會要求你們將最初的問題限制為兩個，然後重新進入隊列詢問其他問題。

I will now turn the call back to the operator to begin the question-and-answer session.

我現在將把電話轉回接線生以開始問答環節。

Operator, can you open the line?

接線員，您能開通線路嗎？

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Susan Maklari, Goldman Sachs.

蘇珊·馬克拉里，高盛。

Thank you.

謝謝。

Good afternoon, everyone.

大家下午好。

Hi Su.

嗨蘇。

How are you?

你好嗎？

Good, Nick.

好，尼克。

The stat that you gave on the digital initiatives are very impressive, so I'd like to start there.

您提供的有關數位化措施的統計數據非常令人印象深刻，所以我想從這裡開始。

Perhaps, can you quantify the impact of those partnerships that you mentioned over time?

也許，您能量化您提到的這些夥伴關係隨著時間的推移所產生的影響嗎？

How do you think about the opportunity relative to the business today and the ramp that you look for as you target that over $1 billion of revenue by 2030.

您如何看待與當今業務相關的機會以及您在 2030 年實現收入超過 10 億美元的目標時所尋求的成長。

And then maybe within there, can you also talk about any implications for margins, both in the near term as these sales start to come through?

然後，也許在其中，您能否談談對利潤率的影響，無論是在短期內，還是在這些銷售開始實現的情況下？

And then over time?

然後隨著時間的推移？

Yes, absolutely.

是的，絕對是。

Why don't I try to break it down a little bit and give some perspective on that and Dave can round up some of the numbers.

為什麼我不試著把它分解並給出一些觀點，戴夫可以對一些數字進行四捨五入。

So I'll just start with the entire digital portfolio.

所以我將從整個數位產品組合開始。

So when you think about that, right, it's both in water and security.

所以當你考慮到這一點時，對吧，這既涉及水又涉及安全。

Obviously, Flo in the whole ecosystem that goes around Flo security, it's connected; Master Lock, it's connected lockout tagout where we're increasingly excited about the opportunity in commercial security.

顯然，Flo 在圍繞 Flo 安全的整個生態系統中是相連的；瑪斯特鎖，它是連網上鎖掛牌，我們對商業安全領域的機會越來越感到興奮。

And then, of course, Yale and August and connected access and everything that gives us over there.

當然，還有耶魯大學和奧古斯特大學以及連接訪問和那裡為我們提供的一切。

I kind of start maybe with the headline answer to your question, which is dimensionalize what the opportunity is and where we start to see it.

我可能會從你的問題的標題答案開始，即對機會是什麼以及我們從哪裡開始看到它進行維度化。

And as I said, in my remarks, we see the opportunity being well over $1 billion by 2030.

正如我在演講中所說，我們認為到 2030 年，這一機會將遠遠超過 10 億美元。

And you're seeing the impact not, right?

你沒有看到影響，對嗎？

As we said, 150 basis points of growth we expect to come for the whole portfolio Fortune Brands portfolio just in the second half alone.

正如我們所說，我們預計僅在下半年，Fortune Brands 的整個投資組合就會實現 150 個基點的成長。

And so we've been working on this for a while and trying to drive it to a momentum point.

因此，我們已經為此努力了一段時間，並試圖將其推向一個動力點。

And now when we've seen that much impact on total company growth, knowing that this is a very rapidly compounding space as well.

現在，當我們看到對公司整體成長的巨大影響時，我們知道這也是一個複合速度非常快的領域。

I think we're at a tipping point where you are starting to see some material impact on both top line and then we'll dimensionalize the margin question for you.

我認為我們正處於一個轉折點，您開始看到對營收的一些實質影響，然後我們將為您詳細說明利潤率問題。

When you break down specifically about the partnership.

當你專門針對合作關係破裂時。

So you break down the Flo by Moen opportunity.

因此，您分解了 Flo by Moen 的機會。

And I think about it really in kind of three big pillers of route to market today.

我認為它實際上是當今市場路線的三大支柱。

One is, call it, the straight-to-consumer route to market, driven by consumer awareness of the issue that is there to solve the disruption to their lives.

一種是直接面向消費者的市場途徑，其驅動力是消費者意識到解決其生活中斷問題的意識。

There's the insurance where we know there's in excess of $15 billion of addressable water damage that we can literally take to almost zero on a per annum basis just in the United States.

透過保險，我們知道每年可解決的水災損失超過 150 億美元，僅在美國，我們實際上可以將其幾乎為零。

And then of course there's the municipal channel, where we know not only is there a lot of water lost through addressable leaks.

當然還有市政管道，我們知道那裡不僅有大量的水因可解決的洩漏而流失。

The cost of cleaning, treating and distributing that water in terms of carbon is very big.

清潔、處理和分配這些水的碳成本非常高。

Just as we said in the quarter, I mean, the retail piece, I would say, you expect it to sort of grow steadily with consumer awareness over time.

正如我們在本季所說，我的意思是，零售部分，我想說，隨著時間的推移，你預計它會隨著消費者意識的提高而穩定成長。

Point-of-sale was 130% in the quarter, which is more than a steady increase.

本季銷售點利用率為 130%，穩定成長。

And so we really believe that there is starting to be increasing consumer awareness.

因此，我們確實相信消費者的意識正在開始增強。

Of this and they are going and seeking the product out.

他們正在尋找產品。

So we are very excited to see that.

所以我們很高興看到這一點。

Insurance, this -- we've been working on insurance for a while and we've been working with insurers to assist the availability of their product.

保險，這個－我們從事保險工作已經有一段時間了，我們一直在與保險公司合作，幫助他們提供產品。

The reason that this quarter was such a milestone was because it was the first time that you saw and ensure move on mass towards mandating the product, not just sort of unexception, but more generally across a huge segment of their portfolio and really looking to the market for a partner that can help them do that.

本季之所以如此具有里程碑意義，是因為這是您第一次看到並確保大規模推動產品授權，這不僅僅是無一例外，而且更普遍的是在他們的產品組合的很大一部分中，並且真正專注於市場尋找可以幫助他們做到這一點的合作夥伴。

And in order to do that, you needed a partner that had a best-in-class product could step up an entire system with nationwide installation be able to provide back-end support dedicated landing pages and have a supply chain that we could ramp very quickly to do that.

為了做到這一點，您需要一個擁有一流產品的合作夥伴，可以加強在全國範圍內安裝的整個系統，能夠提供後端支援專用登陸頁面，並擁有我們可以非常強大的供應鏈很快就可以做到這一點。

I'm immensely proud that our organization in a very short amount of time could pull all that together.

我非常自豪我們的組織能夠在很短的時間內將所有這些整合在一起。

And I think it speaks to the alignment we've driven across the Fortune Brands Org over the last few years and some of the organizational design work we've done to really unleash it.

我認為這說明了我們在過去幾年中在財富品牌組織中推動的協調，以及我們為真正釋放這種協調所做的一些組織設計工作。

And then the third pillar is municipal that CalWEP agreement that I described, where we really are going to open the platform of government rebates, which are pretty plentiful out there, make it really easy for consumers and consumers to access the muncipalities to drive that purchase was very exciting.

第三個支柱是市政，我所描述的 CalWEP 協議，我們將真正開放政府回扣平台，該平台非常豐富，使消費者和消費者能夠輕鬆訪問市政當局來推動購買非常令人興奮。

And a for California but b I think it's really going to be a national template for how this is going to work going forward.

a 代表加州，但 b 我認為這確實將成為未來如何運作的全國模板。

And so you put all of that together, the point I was trying to make is great growth, but more importantly some really, really milestone steps that we believe will drive an inflection in the growth that we're going to see in this portfolio.

所以你把所有這些放在一起，我試圖提出的一點是巨大的成長，但更重要的是一些真正非常具有里程碑意義的步驟，我們相信這些步驟將推動我們將在這個投資組合中看到的成長的拐點。

And just before I turn it over to Dave to talk about margins and maybe I mentioned some of the numbers, I'll just add one other thing, which we also talked about the connected lockout tagout deal that we did with Value Hybrid.

就在我把它交給戴夫談論利潤之前，也許我提到了一些數字，我只想添加另一件事，我們還討論了我們與 Value Hybrid 所做的互聯鎖掛牌交易。

And I don't want to understate the size of that opportunity.

我不想低估這個機會的大小。

I mean, that is making people safer in manufacturing facilities around the world.

我的意思是，這使世界各地製造工廠中的人們更加安全。

And you can just start to think about the size of that market.

您可以開始考慮該市場的規模。

We have the leading product plus software platform in the marketplace and going to drive the transition of that from mechanical to connected.

我們擁有市場上領先的產品和軟體平台，並將推動從機械到互聯的轉變。

So another huge win driven by the same underlying digital team that we've now put in place across all of our portfolios.

這是由我們現在在所有投資組合中部署的同一個底層數位團隊推動的又一個巨大勝利。

So a really big quarter from us strategically in driving this portfolio.

因此，我們在策略上推動這項投資組合需要一個非常大的季度。

And with that I'll let Dave run to that.

然後我就讓戴夫跑去那裡。

Yes.

是的。

Thanks, Nick.

謝謝，尼克。

Sue, I think the market has been looking for material proof points that the strategy is working and now we have a handful of them that are material.

蘇，我認為市場一直在尋找該策略正在發揮作用的實質證據，現在我們有一些實質的證據。

So I think you can sense our excitement, it's early days of the ramp of each of these opportunities, but still meaningful to our overall growth in the second half.

因此，我認為您可以感受到我們的興奮，雖然這些機會還處於早期階段，但對我們下半年的整體成長仍然有意義。

As Nick mentioned, the 150 basis points of growth across the second half, it's probably skewed a bit more towards the fourth quarter, closer to 200 basis points of growth in the fourth quarter.

正如尼克所提到的，下半年成長 150 個基點，第四季可能會更加偏向，接近第四季成長 200 個基點。

And then each of these agreements and partnerships are margin accretive.

然後，每項協議和合作關係都會增加利潤。

I mean as we've talked about in the past, our connected product portfolio is margin accretive relative to the mechanical portfolio and then the nature of these agreements many of which are direct selling opportunities are margin accretive relative to the base portfolio.

我的意思是，正如我們過去所討論的那樣，我們的互聯產品組合相對於機械產品組合而言是利潤增值的，然後這些協議的性質（其中許多是直銷機會）相對於基本投資組合而言是利潤增值的。

And that's a bit of what's driving some of the incremental margin coming through in the second half as these opportunities ramp.

隨著這些機會的增加，這在一定程度上推動了下半年利潤的增量成長。

We'll continue to invest in the flywheel of the connected products business and also be able to have nice leverage from these opportunities.

我們將繼續投資於互聯產品業務的飛輪，並能夠從這些機會中獲得良好的槓桿作用。

Okay.

好的。

That's great color.

那顏色真棒。

Thank you both.

謝謝你們倆。

And then maybe shifting a little bit more to the near term and thinking about the back half.

然後也許會更多地轉向近期並考慮後半部分。

The back half guide seems to imply some relative conservatism perhaps or a bit more conservatism.

後半部指南似乎暗示著某種相對保守主義，或者更保守一點。

And that seems in contrast to the second quarter results and the commentary that you gave.

這似乎與第二季度的業績和您給出的評論形成鮮明對比。

Can you talk a bit about how you're thinking of the health of the consumer?

能談談您對消費者健康的看法嗎？

What's making you a little bit more cautious on the third and the fourth quarter outlook there?

是什麼讓您對第三季和第四季的前景更加謹慎？

And does it vary by price point or by product category?

它是否因價格點或產品類別而異？

Just any details that you can offer on that?

您能提供任何細節嗎？

Sure.

當然。

I'll just give some high-level perspectives and I'm sure Dave will add some color.

我只會給一些高層次的觀點，我相信戴夫會添加一些色彩。

Look, I think it is still wise to be cautious about the consumer.

看來，我認為對消費者保持謹慎還是明智的。

I think you're seeing that across industries.

我想你在各個行業都看到了這一點。

I mean there's been choppiness not just in our industry, but in others.

我的意思是，不僅我們的行業出現了波動，其他行業也出現了波動。

Interestingly, it is a little bit a tale of two cities.

有趣的是，這有點像是兩個城市的故事。

We see choppiness in some areas.

我們看到某些地區出現波動。

As we said, we've seen retail kind of steady out, not yet quite recover, but seem to have found a baseline at least for our business.

正如我們所說，我們已經看到零售業趨於穩定，尚未完全復甦，但似乎至少為我們的業務找到了基準。

But with, I would say, we're sort of where we thought we would be, not quite where we hoped is the way I think about it.

但我想說的是，我們現在已經達到了我們的預期，但我的想法並不完全是我們所希望的。

And so we're sort of in line with what we had forecast maybe a bit weak certainly on the China front, but better on the single-family new construction front.

因此，我們的預測與我們的預測一致，在中國方面肯定會有點弱，但在單戶新建建築方面會更好。

But with that, I think it still is wise to be cautious, particularly as we go through the third quarter and awaits for this ramp up the connected products I was talking about.

但鑑於此，我認為謹慎行事仍然是明智的，特別是當我們進入第三季並等待我正在談論的互聯產品的成長時。

That said, I do think that the consumer is very sensitive from a confidence perspective to news around inflation and rates.

也就是說，我確實認為，從信心角度來看，消費者對通膨和利率的消息非常敏感。

And I do think as that improves, we do see proof points that they were done very quickly as they did in the beginning of the year to that kind of news and information.

我確實認為，隨著情況的改善，我們確實看到了證據，表明他們像年初那樣很快就處理了此類新聞和資訊。

And so to me, I would look for that to start to see a bit of an inflection around the recovery.

所以對我來說，我希望看到復甦出現一些變化。

And, Sue, I'll provide, let me provide a bit of context around the second half as I think some of the phasing might be counter to what you typically expect as these opportunities ramp and there are some comp dynamics to sort through.

而且，蘇，我會提供一些有關下半年的背景信息，因為我認為隨著這些機會的增加，一些階段可能與您通常預期的相反，並且有一些補償動態需要整理。

So if we look at the second half, I'd expect third quarter sales down around 2.5% and fourth quarter sales growth of 3%, of which about 200 basis points of that is connected.

因此，如果我們看看下半年，我預計第三季銷售額將下降 2.5% 左右，第四季銷售額將成長 3%，其中約 200 個基點是相關的。

So the third quarter looking pretty similar to the second quarter, as Nick kind of alluded to, and then as we move to the fourth quarter, that connected growth, we have continued single-family new construction completions, which have lagged starts and we'll be having a -- it will be a soft comp on the new construction side there.

因此，正如尼克提到的那樣，第三季度看起來與第二季度非常相似，然後當我們進入第四季度時，這種增長聯繫在一起，我們繼續單戶新建築竣工，這些建築落後於開工，我們'將會有一個－這將是那裡新建築方面的一個軟補償。

And then we have some previously awarded product placements that will set in the fourth quarter across the business.

然後，我們還有一些先前獲得的產品植入，這些植入將在第四季度在整個業務中設置。

And so some really strong reasons to believe in that sales phasing as we move through the period.

因此，有一些非常充分的理由相信，隨著我們度過這段時期，銷售會分階段進行。

And then with that sales phasing operating margin we expect actually will be higher in the fourth quarter, probably closer to 18.5% than in the third quarter, where we're expecting something closer to 17.5%.

隨著銷售階段性的推進，我們預計第四季的營業利潤率實際上會更高，可能比第三季接近 18.5%，我們預計第三季接近 17.5%。

Okay.

好的。

That's that's very helpful.

這非常有幫助。

Thank you, both and good luck with everything.

謝謝你們，祝一切順利。

Thanks.

謝謝。

Thank you.

謝謝。

Adam Baumgarten, Zelman & Associates.

亞當‧鮑姆加滕 (Adam Baumgarten)，Zelman & Associates。

Hi, guys.

嗨，大家好。

A quick question on security, really strong margins in the quarter, but it looks like based on the full year guide, maybe those are stepping down a bit in the second half.

關於安全性的一個簡單問題，本季的利潤率確實很高，但看起來根據全年指南，這些利潤率可能會在下半年下降。

Maybe if you could walk through some of the dynamics there?

也許您可以了解那裡的一些動態？

Yes, Adam, as we've talked about, really strong margins, especially organically in security.

是的，亞當，正如我們所討論的，利潤率非常高，尤其是在安全方面。

We've replatformed the cost basis there in that business, and we're starting to see those results, which we expected.

我們已經重新調整了該業務的成本基礎，並且我們開始看到我們預期的結果。

With Yale and August included in that, there will be periods of reinvestment back into that business.

考慮到耶魯大學和奧古斯特大學，將會有一段時間對該業務進行再投資。

We'll also reinvest back into Master Locking.

我們也將重新投資瑪斯特鎖業。

So you may see some periods of just margin volatility that will signal as we make some of those bigger investments back into the brands and to drive the product.

因此，您可能會看到某些時期的利潤波動，這將表明我們對品牌進行了一些更大的投資並推動了產品的發展。

Ok. Got it.

好的。知道了。

The only thing I would add, Adam, about that margin journey is huge progress, obviously, on the organic margin and the cost base of the business.

亞當，關於利潤率之旅，我唯一要補充的是，顯然，在有機利潤率和業務成本基礎上取得了巨大進步。

Of course, we like profitability, but really, we believe that this business will be a growth platform and you can invest behind profitable growth platform.

當然，我們喜歡獲利能力，但實際上，我們相信這項業務將是一個成長平台，您可以在獲利成長平台後面進行投資。

So the motivation, the strong motivation of the team to get it to the point where we're not getting it is so that we can start to invest in this connected and commercial journey that we see while driving margin improvement for the business and investors but really create the fuel to drive top line as well.

因此，團隊的強烈動機是為了讓我們能夠開始投資這個互聯和商業之旅，同時推動企業和投資者的利潤率提高，但是真正創造燃料來推動營收。

Okay.

好的。

Got it.

知道了。

And then just on the Flo business, those three pillars to market that you spoke about maybe where you see the biggest near-term opportunity within those three -- over the next year or two?

然後就 Flo 業務而言，您談到的這三個市場支柱可能是您在這三個支柱中看到的最大的近期機會 - 在未來一兩年內？

Yes.

是的。

I would say it's really in that insurance pillar.

我想說這確實是在保險支柱中。

I think the consumer is coming along even quicker than I might have expected at the growth rate that I was describing.

我認為，以我所描述的成長率，消費者的成長速度比我預期的還要快。

But there is such a huge opportunity in insurance.

但保險領域卻蘊藏著如此巨大的機會。

And if you talk to property insurers today, it's a little bit of the same path as health insurers started down the path a few years ago.

如果你今天與財產保險公司交談，你會發現這與健康保險公司幾年前開始走的路有點相同。

They are no longer just risk pricers.

他們不再只是風險定價者。

They really do need to mitigate downstream risk and take cost out of the system in order to offset the cost of insurance.

他們確實需要減輕下游風險並降低系統成本，以抵消保險成本。

I mean I think since 2021, the average US homeowners insurance is up about 30%.

我的意思是，我認為自 2021 年以來，美國房屋保險平均上漲了約 30%。

I think it's 27%.

我認為是27%。

So there is a need to find ways to take cost out.

因此，需要找到降低成本的方法。

We have a product that takes $15 billion plus of annualized cost close to zero.

我們的產品需要 150 億美元，年化成本接近零。

And so I think you'll start to see that be the fastest and largest driver as insurers start to gain confidence in this as a proposition and move towards mandating it just as they might fire suppression or alarm system in your house.

因此，我認為您將開始看到這是最快和最大的驅動因素，因為保險公司開始對此提案充滿信心，並開始強制實施它，就像他們在您的房子里安裝滅火或警報系統一樣。

And Adam, I would just add, as I think about it simply, the insurance opportunity is really about two things.

亞當，我想補充一點，我簡單地思考一下，保險機會其實與兩件事有關。

One, being able to offset unknown risk from storms, fires, et cetera, with known risk reduction, which is preventable water damage.

第一，能夠透過已知的風險降低來抵消風暴、火災等未知的風險，這是可預防的水災。

And then two, lowering the affordability of homes, as Nick mentioned, because now you're able to price risk better to homeowners and consumers and one offer them insurance and two offer them insurance at a better rate, which helps overall affordability.

然後，正如尼克提到的，第二個是降低房屋的承受能力，因為現在你能夠更好地向房主和消費者定價風險，一個為他們提供保險，兩個以更好的費率為他們提供保險，這有助於整體承受能力。

So we're excited about the early progress here and where this is going to go.

因此，我們對這裡的早期進展以及未來的發展感到興奮。

Great.

偉大的。

Good to hear.

很高興聽到。

Thank you, guys.

謝謝你們，夥計們。

Best of luck.

祝你好運。

Thank you.

謝謝。

Matthew Bouley, Barclays.

馬修·博利，巴克萊銀行。

Good evening, everyone.

大家晚上好。

Thank you for taking the questions.

感謝您提出問題。

I wanted to touch on the US single-family new construction end market.

我想談談美國單戶新建築終端市場。

It looked like, of course, you raised your guidance for the year just for that particular end market.

當然，看起來您只是針對特定的終端市場提高了今年的指導。

Obviously, if you look kind of high level, there's been a little more chop in starts and new home sales and homebuilder order results.

顯然，如果你看起來有點高水平，你會發現開工率、新房銷售和房屋建築商訂單結果略有增加。

So maybe it's a little bit of timing difference going on, but I'm curious if you can kind of unpack that a little bit.

所以也許是有點時間上的差異，但我很好奇你是否能稍微解釋一下。

What exactly are you seeing in single-family new construction and kind of what gives you the confidence there to increase the guidance for the year?

您在單戶新建築中到底看到了什麼？

Thank you.

謝謝。

Hey, Matt.

嘿，馬特。

Yes, you're correct to point out the original guidance through this segment up 5% to 7%, and now we see it up 8% to 10%.

是的，您正確地指出了該細分市場的原始指引增長了 5% 至 7%，現在我們看到它增長了 8% 至 10%。

And I'd remind you, when we speak to the market, we're speaking to the market for our products and when we anticipate them being consumed.

我想提醒您，當我們與市場對話時，我們是在與我們的產品市場以及我們預期產品被消費的市場對話。

And so here in this segment, we do have a lag typically from a start to when our product is consumed and for water, for instance, it's closer to a completion for doors that comes more in the middle.

因此，在這個細分市場中，我們通常從開始到我們的產品被消耗時確實有一個滯後，例如對於水來說，它更接近中間的門的完成。

And so as we look at it, first half starts were up 17%, completes were only up 1%.

從我們的數據來看，上半年開工量成長了 17%，完工量僅成長了 1%。

And while it seems like the builder orders to your point, maybe softened a bit.

雖然看起來建築商的訂單符合你的觀點，但可能會軟化一點。

There's still some growth and then we have that tailwind of starts and completion gap to take us through the second half.

仍然有一些增長，然後我們有啟動和完成差距的順風帶我們度過下半年。

And so that's really what gives us confidence in this segment continuing to perform through 2024 and beyond.

因此，這確實讓我們對這個細分市場在 2024 年及以後繼續表現充滿信心。

Got it.

知道了。

All right.

好的。

Cool.

涼爽的。

Thank you, David.

謝謝你，大衛。

Secondly, I think you made a comment at the top around sort of confidence in the ability to hit margin guidance.

其次，我認為您在頂部發表了關於對達到保證金指導能力的信心的評論。

I believe you mentioned some productivity come in both Outdoors and Water.

我相信您提到戶外活動和水中都有一些生產力。

So as we kind of think about the second half, I heard you loud and clear that you'll have some of that kind of margin accretive sales coming with the connected products as well.

因此，當我們思考下半年時，我清楚地聽到您說，互聯產品也會帶來一些利潤成長的銷售。

But as we kind of think about the sequential improvement in margins in the second half and water margins implied to be above 24%.

但我們想想下半年利潤率的連續改善，水利率暗示將超過 24%。

And same question kind of unpack that and what specifically are you expecting on the productivity side that could support that margin ramp?

同樣的問題有點解開這個問題，以及您在生產力方面具體期望什麼可以支持利潤率的上升？

Thank you.

謝謝。

Yes.

是的。

So we have really good visibility into what's on our balance sheet.

因此，我們對資產負債表上的內容有充分的了解。

And our plants have been running well and we have some favorable costs that's going to flow through the P&L in the second half.

我們的工廠運作良好，我們有一些有利的成本，這些成本將在下半年計入損益表。

And so we'll see that come through.

所以我們會看到它的實現。

I think it's in Outdoor, it's in Water.

我認為是在戶外，是在水中。

We also have favorable product mix.

我們也擁有有利的產品組合。

So as we have -- the digital growth and then incremental placements with some innovations that are going to be margin accretive, we'll see that come through in the second half.

因此，正如我們所看到的那樣，數位成長以及一些創新的增量佈局將增加利潤，我們將在下半年看到這一點。

And then we're continuing to tightly manage our cost base until we see broad-based volume recovery, we've definitely seen pockets of growth, until we see more broad-based, we'll be tightly managing costs.

然後，我們將繼續嚴格管理我們的成本基礎，直到我們看到廣泛的銷售恢復，我們肯定會看到一些成長，直到我們看到更廣泛的基礎，我們將嚴格管理成本。

And so I think those factors together give us confidence as we sit here today in the margin appreciation across the second half of the year.

因此，我認為這些因素共同給了我們信心，因為我們今天坐在這裡，看到下半年的利潤率上升。

All right.

好的。

Thanks Dave.

謝謝戴夫。

Good luck guys.

祝大家好運。

Thank you.

謝謝。

Michael Rehaut, JPMorgan, please.

雷豪特（Michael Rehaut），摩根大通，有請。

Hi.

你好。

Good afternoon.

午安.

Thanks for taking my questions.

感謝您回答我的問題。

First, I know, obviously, it's a multiyear ramp and we've talked a lot about digital and connected I would like to try and get a little more granular if possible and recognizing that there's a lot of white space and opportunity over the next several years.

首先，我知道，顯然，這是一個多年的過程，我們已經討論了很多關於數位化和互聯的問題，如果可能的話，我想嘗試更細緻地了解，並認識到在接下來的幾年裡還有很多空白和機會。

But as you're starting to kind of think some of these initial deals and start to -- the strategy becomes more and more clear.

但當你開始思考其中一些初始交易並開始時，策略就會變得越來越清晰。

I was just hoping to get a sense for, number one, across Water Innovation and Security, what percent do you consider digital or connected today of your sales?

我只是希望了解，第一，在水創新和安全領域，您認為數位化或互聯化的銷售額佔今天的銷售額的百分比是多少？

I think you threw out a 20% number for security.

我認為您出於安全考慮而放棄了 20% 的數字。

And more importantly, as we think about the contributions to sales growth in '25 and '26, what type of above-market lift might we expect as these different products gain momentum, i.e., Flo and insurance and lockout tagout and other initiatives on the security side.

更重要的是，當我們考慮對25 和26 年銷售成長的貢獻時，隨著這些不同產品的發展勢頭，我們預計會出現什麼類型的高於市場的提升，即Flo 和保險、上鎖掛牌以及其他措施安全方面。

Hi, Mike.

嗨，麥克。

It's Dave.

是戴夫。

So as we think about the size of this business today and where it's going, I think a helpful reference point as we look at what we expect in the third quarter, we'll now be annualized sales north of $300 million.

因此，當我們考慮到今天這項業務的規模及其發展方向時，我認為在我們展望第三季的預期時，這是一個有用的參考點，我們現在的年化銷售額將超過 3 億美元。

This is up -- the last number we gave was we were approaching $250 million.

這是向上的——我們給出的最後一個數字是我們接近 2.5 億美元。

And so we're starting to see that step change in growth.

因此，我們開始看到成長的階躍變化。

I think that will be a metric we continue to follow because it's really hard as fast as things are moving and growing for us to give a retrospective view.

我認為這將是我們繼續遵循的指標，因為事情的發展和發展速度如此之快，我們很難做出回顧。

I think it's more about what's happening in the quarter and where do we see it going from there.

我認為更多的是關於本季發生的事情以及我們如何看待它的發展。

As we look to '25 and '26, as we talked about, the growth will be 150 basis points in the second half of the year at the early days of these initiatives and trust that the team has a full list of opportunities and the pipeline remains robust and active.

正如我們所談到的，我們展望“25”和“26”，在這些舉措實施初期，下半年的增長將達到 150 個基點，並相信團隊擁有完整的機會清單和渠道保持強勁和活躍。

And so we expect it to continue to accelerate.

因此我們預計它會繼續加速。

So as we look to drive continued above-market growth.

因此，我們希望推動持續高於市場的成長。

I think this is just the tip of the iceberg for what we will execute on over the next two years.

我認為這只是我們未來兩年將執行的工作的冰山一角。

Great.

偉大的。

Now that's -- it's obviously really interesting and a huge opportunity over a number of years.

現在，這顯然非常有趣，並且是多年來的巨大機會。

So look forward to hearing more about that.

因此，期待聽到更多相關資訊。

Secondly, maybe just to kind of dive in a little bit to some of the changes in guidance by segment.

其次，也許只是稍微深入了解一下按細分市場劃分的指導的一些變化。

If you could kind of maybe break out the drivers behind the improved margin outlook for Outdoors as well as the reduced outlook for security sales, which seems to be coming more from the acquisition piece rather than the organic piece.

如果你能透露戶外利潤前景改善以及證券銷售前景下降背後的驅動因素，這似乎更多來自收購部分，而不是有機部分。

And I know, obviously, this quarter was a bit below our estimates in terms of the top line.

我知道，顯然，本季的營收略低於我們的預期。

So just trying to understand, number one, the drivers of the improved margin outlook for Outdoor and if that's sustainable and kind of a new baseline for the company going into next year and then kind of the drivers behind some of the volatility in the acquired sales, I guess, in security this year.

因此，首先，我想了解戶外用品利潤率前景改善的驅動因素，以及這是否可持續，是否為公司進入明年的新基準，然後是收購銷售額波動背後的驅動因素，我猜，今年在安全方面。

Yes, happy to.

是的，很高興。

So on Outdoors, I'd say two things.

所以在戶外，我想說兩件事。

So one, we took the sales up a little bit and that business is the most vertically integrated.

因此，我們的銷售額略有上升，而且該業務是垂直整合程度最高的。

We'll have some additional volume leverage coming through.

我們將獲得一些額外的成交量槓桿。

And then as I mentioned, the plants have been performing well, especially within our doors business, and so it's driving some favorable lower cost inventory that's on the balance sheet coming through the P&L as we sell through the back half of the year.

正如我所提到的，這些工廠一直表現良好，尤其是在我們的門禁業務中，因此當我們在今年下半年進行銷售時，它會推動資產負債表上的一些有利的低成本庫存通過損益表出現。

So we have good visibility to both of those things that will drive margin.

因此，我們對推動利潤率成長的這兩件事都有很好的了解。

And then on security, the sales adjustment down is really POS driven, I'd say, predominantly through the first half performance.

然後在安全方面，我想說，銷售調整的下降實際上是 POS 驅動的，主要是透過上半年的表現。

And importantly, as we looked at our trends late into June up until the call, we've seen POS recover across that business and kind of gives us confidence in our full year outlook there for security.

重要的是，當我們查看 6 月下旬直至電話會議之前的趨勢時，我們看到 POS 業務已恢復，這讓我們對全年的安全前景充滿信心。

So it's really first half softness in Master Lock.

所以瑪斯特鎖上半年確實表現疲軟。

And I'll just add a couple of things to round out your question.

我將添加一些內容來完善您的問題。

With respect to Outdoors, as we said at our Investor Day and I'm going back a little while, I mean, this was part of the margin improvement journey as we thought about the footprint and making that business more efficient.

關於戶外，正如我們在投資者日所說的那樣，我要回顧一下，我的意思是，這是利潤率改善之旅的一部分，因為我們考慮了足跡並提高了業務效率。

And so absolutely expect this you know total straight line every quarter, but do expect that we are continually moving this business towards the endpoint that we communicated, and it's tracking really well.

因此，絕對期望您每個季度都知道總直線，但確實期望我們不斷地將這項業務推向我們溝通的端點，並且它的跟踪非常好。

And then just on the security side, as Dave said, kind of a pure retail e-com part of Master Lock is where we saw some POS softness and as Dave alluded to improved towards the end of Q2 and into July.

然後就安全方面而言，正如Dave 所說，Master Lock 的純零售電子商務部分是我們看到POS 出現一些疲軟的地方，正如Dave 提到的那樣，該情況在第二季度末和7 月份有所改善。

So that, it was good to see that improvement.

因此，很高興看到這種改進。

And then the acquired business actually performed pretty well.

然後收購的業務其實表現還不錯。

What we've learned about it as we've gone through time is it's sort of a very big deal, a big deal on top of POS.

隨著時間的推移，我們了解到這是一件非常重要的事情，也是 POS 之上的大事。

And so you'll lap some big deals at times.

所以你有時會達成一些大交易。

In which case, it may feel like it's pulling back and then you're signing big deals at other times.

在這種情況下，你可能會感覺它在撤退，然後你在其他時候簽署了大筆交易。

And so I think we had some last here, but at the same time, we just announced that ADT deal.

所以我認為我們最後還有一些，但與此同時，我們剛剛宣布了 ADT 交易。

Those sales aren't really yet pulling through.

這些銷售還沒有真正實現。

And so that would be an accelerant.

所以這將是一種促進劑。

As the business grows, it will get a lot smoother because it will be less dependent on some big partnerships that we announced from time-to-time.

隨著業務的成長，它會變得更加順利，因為它將減少對我們不時宣布的一些大型合作關係的依賴。

Great.

偉大的。

Thank you.

謝謝。

Philip Ng, Jefferies.

菲利普‧吳，杰弗里斯。

Hi, guys.

嗨，大家好。

Mid-single-digit organic growth in Moen North America is actually really impressive.

摩恩北美的中個位數有機成長實際上非常令人印象深刻。

Any color on the split between volume versus price?

數量與價格之間的差異有什麼顏色嗎？

And do you actually see that business accelerating in the back half?

您真的看到下半年業務在加速嗎？

Because there is a decent portion of single-family.

因為單戶家庭佔相當大的比例。

It seems like you're expecting that to kind of firm up.

看來你期待這種情況會變得更加堅定。

And then on the flip side, China was obviously weaker than we all would have hoped.

另一方面，中國顯然比我們所希望的要弱。

Are you starting to see that business bottom out?

您是否開始看到該業務觸底反彈？

I just wanted some color in terms of intra-quarter trends and how you think about the back half of the year?

我只是想了解季度內趨勢以及您如何看待下半年？

Yes.

是的。

Let me start with your Moen question, and then I'll let Nick talk big picture China and give some context to that.

讓我從你的摩恩問題開始，然後我會讓尼克談談中國的大局並給出一些背景。

Yes, we actually saw volume growth and price growth in Moen North America in the quarter, which is great to see.

是的，我們實際上看到了摩恩北美在本季的銷售成長和價格成長，這是很高興看到的。

And as we mentioned in the prepared remarks, we saw growth in all channels in Moen North America.

正如我們在準備好的發言中提到的，我們看到摩恩北美所有管道的成長。

And given -- to your point, the single-family new construction ramp and the accelerated progress with Flo , we do expect their growth to continue across the second half of the year, which is nice to see.

考慮到您的觀點，單戶住宅的新建坡道和 Flo 的加速進展，我們確實預計它們的增長將在今年下半年繼續，這是很高興看到的。

Then I'll let Nick talk big picture China and then I can give some context there.

然後我會讓尼克談談中國的大局，然後我可以提供一些背景資訊。

Yes and I'll just before jumping on just comment on a broader thing which I think is actually what you're picking up is really important.

是的，在繼續之前我會評論一個更廣泛的事情，我認為這實際上是你所選擇的非常重要的事情。

That growth in Moen North America and you had that growth in Outdoors.

摩恩北美的成長和戶外產品的成長。

And so we were very pleased to see strong in this market, strong top line performance from these two key engines in our business in the key markets, right?

因此，我們很高興看到這個市場的強勁表現，我們在關鍵市場業務中的這兩個關鍵引擎的強勁營收表現，對嗎？

I think that was a big take away from us, particularly, as you pull China out, you've got to see that very clearly like the course doing really well.

我認為這對我們來說是一個很大的收穫，特別是當你把中國拉出來時，你必須非常清楚地看到這一點，就像這門課程做得非常好一樣。

In China, there were really two things at work one, just as a reminder, this time last year, there were a lot, the government pushed to complete a lot of projects that have been sitting kind of in mid-completion mode.

在中國，確實有兩件事在起作用，一是提醒一下，去年這個時候，政府推動了許多專案的完成，而這些專案一直處於半完工狀態。

And so you had that last, but the Chinese consumer, and you've seen this across the industries and segments is very, very cautious.

最後，但是中國消費者，你已經看到各個產業和細分市場都非常非常謹慎。

And I think there's some work to do some Bank of China announcements this morning about interest rate easing.

我認為，中國銀行今天早上發布的有關利率寬鬆的公告還有一些工作要做。

There is some work to do in that economy.

在該經濟中還有一些工作要做。

I think there comes a point at which it definitely does turn and becomes much more of an R&R focused market and then provide nice growth optionality.

我認為，到了某個時刻，它肯定會轉變，變得更加註重 R&R 市場，然後提供良好的成長選擇。

It also provides some very nice innovation for the broader portfolio just being that close to some of very innovative consumer approach to the market.

它也為更廣泛的產品組合提供了一些非常好的創新，只是接近一些非常創新的消費者進入市場的方式。

And so a nice pipeline there.

那裡有一個很好的管道。

But the one headline that I leave you with before I just give it to Dave is that as this business has come down from its peak and the China housing market has come down from its peak.

但在我把它交給戴夫之前，我留給你們的一個標題是，隨著這項業務已經從頂峰迴落，中國房地產市場也已經從頂峰迴落。

The team has done a fabulous job in managing profitability and managing the size and there's really resize and replatformed the business.

該團隊在管理盈利能力和管理規模方面做得非常出色，並且確實對業務進行了規模調整和平台重組。

It's gotten to the point now where I'll offer to bottom out and provide some growth.

現在已經到了我將提出觸底反彈並提供一些增長的地步。

Should it not, it actually isn't really that material anymore to the portfolio.

如果不是的話，它實際上對於投資組合來說不再那麼重要了。

I think in many ways kind of the worse is behind us just given its size now.

我認為，從很多方面來看，考慮到它現在的規模，更糟糕的情況已經過去了。

And it's relative profitability of Fortune Brands it's just not a whole lot of impact to us.

這是財富品牌的相對獲利能力，對我們來說影響不大。

Yeah, and then Phil, to put some context around that, I mean this was a $500 million business in 2021.

是的，然後 Phil，為了說明這一點，我的意思是，到 2021 年，這是一項價值 5 億美元的業務。

We now think it will be about $250 million by the end of the year.

我們現在認為今年年底將達到約 2.5 億美元。

So to Nick's point, a lot of this is behind us.

所以對尼克來說，很多事情都已經過去了。

It's taken a 50% reduction over the past three years.

過去三年減少了 50%。

And if you look at -- relative to what we have going on in the rest of the portfolio, it's smaller than our digital and connected business.

如果你看一下——相對於我們產品組合的其餘部分，它比我們的數位和互聯業務要小。

It's a House of Rohl business is more than twice as big.

羅爾之家的業務規模是其兩倍多。

It's just a less impactful piece.

這只是一個影響較小的作品。

And as it is replatformed and the market recovers, we do expect it to grow when we get to that point.

隨著它的平台重組和市場復甦，我們確實預計當我們達到這一點時它會成長。

And then from a margin standpoint, it remains profitable in what was a high-teens operating margin business is now at mid to high single-digits.

然後從利潤率的角度來看，它仍然保持盈利，營業利潤率很高的業務現在處於中高個位數。

And so the team is working to get cost out, but it's much smaller, much less meaningful to the overall portfolio and we have other avenues of growth going forward.

因此，團隊正在努力降低成本，但成本要小得多，對整體投資組合的意義要小得多，而且我們還有其他成長途徑。

Okay.

好的。

That's great perspective.

這是一個很棒的觀點。

And then, Dave, you were pretty confident that from an inflation standpoint for Water Innovation you covered this year, but certainly, metal prices are higher, ocean freight ship and container prices are higher.

然後，戴夫，從通貨膨脹的角度來看，您對今年報告的水創新非常有信心，但當然，金屬價格更高，海運船和貨櫃價格更高。

So as you -- as we look out to 2025, you guys plan to take price, do you have some increases out there?

那麼，當我們展望 2025 年時，你們計劃定價，你們有一些上漲嗎？

And do you have enough levers still to drive margins higher?

您是否還有足夠的槓桿來提高利潤率？

And then certainly with potential change in administration, there is talk to tariffs potential of horizon.

當然，隨著政府的潛在變化，人們會談論關稅的潛力。

Just kind of remind us how you're set up now perhaps versus '18, '19 in terms of your exposure to China?

請提醒我們一下，與 18、19 年相比，您現在對中國的了解如何？

And how do you kind of anticipate combating that going forward?

您預計如何應對未來的挑戰？

I'll just make a quick comment on the pricing part, maybe philosophically on the supply chain part and Dave can break it out.

我只會對定價部分做一個快速評論，也許從哲學上對供應鏈部分進行評論，戴夫可以將其分解。

Just philosophically, on pricing, we've invested very heavily in category management capabilities that really allow us to understand better how to manage our categories as category leaders and where to meet the consumers.

從哲學上講，在定價方面，我們在品類管理能力上投入了大量資金，這確實讓我們能夠更好地了解如何作為品類領導者來管理我們的品類以及在哪裡滿足消費者。

And those insights have led to a very different set of pricing discussions with customers where it really is about driving profitable growth for everybody in the category.

這些見解導致了與客戶進行一系列截然不同的定價討論，真正的目的是推動該類別中每個人的利潤成長。

And as a consequence of that, we've really turned our businesses that we take price every year.

因此，我們確實將我們的業務轉變為每年都定價。

We may moderate, how much or how little we take, but we are in an annual price taking cadence.

我們可能會調整我們收取的金額或金額，但我們每年都會以價格收取節奏。

I think it's very important to regularly exercise that muscle.

我認為定期鍛鍊那塊肌肉非常重要。

Sometimes we may go back, sometimes we may give a little bit here, but net-net, we're taking price and we will continue to do so and just do it consistently and do it in smallish increments where you're not shocking the market because you haven't done it in a long while and you get caught out, you just do it regularly and you do in a good cadence and you maintain a lot of predictability in the market and we feel very strongly about that.

有時我們可能會回去，有時我們可能會在這裡給予一點點，但是淨淨，我們正在接受價格，我們將繼續這樣做，並且始終如一地這樣做，並以較小的增量進行，這樣您就不會感到震驚因為你已經很長一段時間沒有這樣做了，你就會被抓住，你只是定期做，並且以良好的節奏做，你在市場上保持了很大的可預測性，我們對此有強烈的感覺。

So with that I'll let Dave dimensionalize it.

因此，我將讓戴夫對其進行維度化。

Yes.

是的。

And Phil, I think, Nick said it well, and we -- at this point, what we expect to see in 2025, we don't -- we expect to be able to cover it with both internal productivity and incremental price.

菲爾，我認為，尼克說得很好，我們——在這一點上，我們期望在 2025 年看到的情況，我們沒有——我們期望能夠透過內部生產力和增量價格來覆蓋它。

And as Nick said, we look to take price every year just given our capabilities around category management, our brand strength and our innovation.

正如尼克所說，鑑於我們在品類管理、品牌實力和創新方面的能力，我們希望每年都能定價。

But as we look across the back half of the year, given the length of our supply chains and our agreements with our suppliers, we expect to have an immaterial impact for many changes that occurred in the second quarter.

但當我們回顧今年下半年時，考慮到我們供應鏈的長度以及我們與供應商的協議，我們預計第二季度發生的許多變化不會產生實質影響。

And it's been nice to see, frankly, at the start of the third quarter, the metals have pulled back a bit.

坦白說，很高興看到第三季初金屬價格有所回落。

So that continues that will even ease the impact on 2025.

這樣下去，甚至會減輕對 2025 年的影響。

Do you want to, Nick, tariff.

尼克，你想要關稅嗎？

Do you want to speak about tariff?

您想談談關稅嗎？

Okay.

好的。

Just very generally because I would say, look, I think that would be important to just dimensionalize a little bit how our supply chain change and it has changed quite a bit.

非常籠統地說，因為我想說，看，我認為對我們的供應鏈如何變化進行一些維度化很重要，而且它已經發生了很大的變化。

But we don't invite it.

但我們不邀請它。

It would be a mental amount of work as it's been in the past.

與過去一樣，這將是一項腦力勞動。

I'll just remind you even going back to the days, we had a chemist, so there's been plywood tariffs, border tariffs, COVID shutdowns.

我只想提醒你，甚至回到過去，我們有一個化學家，所以有膠合板關稅、邊境關稅、新冠疫情關閉。

Our supply chain team has excelled at outperforming the market.

我們的供應鏈團隊在跑贏大盤方面表現出色。

And while we don't invite these types of things that are enormous amounts of work.

雖然我們不邀請這些類型的事情，但這是大量的工作。

We tend to accelerate our share gain every time it happens.

每次發生這種情況時，我們都會傾向於加速我們的份額成長。

And even quite recently in some very large customer discussions, our customers have demonstrated their supply chain team just even now how we are outperforming the general market in terms of our ability to deliver on time in full and be very consistent.

即使在最近的一些非常大的客戶討論中，我們的客戶也已經向他們的供應鏈團隊展示了我們在按時足額交付和非常一致的能力方面如何超越一般市場。

And so I think we're certainly prepared and we're continuing to prepare ourselves no matter what the results of the election is.

因此，我認為我們當然已經做好了準備，無論選舉結果如何，我們都會繼續做好準備。

I think there's quite a likelihood that we may see some incremental tariffs.

我認為我們很可能會看到一些增量關稅。

But with our firstly fairly heavy North American supply chain, I think, are very well equipped with the capability of the team will probably come up even stronger.

但憑藉我們首先相當重的北美供應鏈，我認為，裝備非常齊全，團隊的能力可能會變得更強。

And if you look at the financials around it, Phil.

如果你看看周圍的財務狀況，菲爾。

So we today less than 20% of our spend -- our material spend is from China, which is down significantly from 2017 when it was north of 50%.

因此，我們今天的支出只有不到 20%——我們的材料支出來自中國，比 2017 年的 50% 以上大幅下降。

So, Nick, it's been well positioned.

所以，尼克，它的定位很好。

Team has done a lot of work.

團隊做了很多工作。

We haven't stopped doing the work because obviously, tariffs are still in place.

我們並沒有停止工作，因為顯然關稅仍然存在。

And areas that are still in China, we have key components that are dual sourced.

而仍在中國的地區，我們擁有雙重來源的關鍵零件。

And while they might be at a higher cost if we move it relative to incremental tariffs, that equation tips in the favor of the new source.

雖然如果我們相對於增量關稅調整它們的成本可能會更高，但這一方程式有利於新來源。

And so we feel well positioned and the team has worked hard to be prepared for what comes at us.

因此，我們感覺自己處於有利位置，團隊也努力工作，為我們面臨的情況做好準備。

Okay.

好的。

That's great color, guys.

夥計們，這顏色真棒。

Appreciate it.

欣賞它。

John Lovallo, UBS.

約翰‧洛瓦洛，瑞銀集團。

Hi, guys.

嗨，大家好。

Thank you for taking my questions as well.

也感謝您回答我的問題。

First one is maybe -- just maybe a little color on fiber on trends.

第一個是也許——也許只是在纖維趨勢上添加一點色彩。

I think you talked about up low single-digit POS led by wholesale.

我認為您談到了以批發為主導的低個位數 POS。

But I'm curious how that may have progressed through the quarter?

但我很好奇這個季度的進展如何？

And any color on what the exit rate was?

退出率有什麼顏色嗎？

John, I think that's pretty consistent through the quarter.

約翰，我認為整個季度的情況非常穩定。

So we didn't see much volatility as we would have expected given it's the season for deck building.

因此，考慮到現在是套牌建造季節，我們並沒有看到太多的波動。

Got it.

知道了。

Okay.

好的。

And then if we just think bigger picture as we move out into next year, I mean, R&R has had a couple of years of being down I know you don't have a crystal ball, but how are you kind of thinking about the kind of the slope of the recovery in repair and remodel spending as we move into next year?

然後，如果我們在進入明年時考慮更大的前景，我的意思是，R&R 已經經歷了幾年的低迷，我知道你沒有水晶球，但你是如何思考這種情況的當我們進入明年時，維修和改造支出的復甦斜率是多少？

Yes.

是的。

Looking at the usual factors that we consider when forecasting R&R, which for us is consumer confidence, unemployment, home equity levels and then existing home sales.

看看我們在預測 R&R 時考慮的常見因素，對我們來說是消費者信心、失業率、房屋淨值水平，然後是現房銷售。

And so there's still a tale to be told here in the back half of the year as to how the consumer responds, getting through the election, understanding what level of interest rate cuts happen, if any, and then how existing home sales -- home sales respond.

因此，今年下半年仍然有一個故事要講，關於消費者如何反應，透過選舉，了解降息的程度（如果有的話），以及現有房屋銷售如何 - 房屋銷售回應。

And so we'll continue to look at those factors and provide an update on our 2025 view when we get to that point.

因此，我們將繼續關注這些因素，並在達到這一目標時提供 2025 年觀點的最新資訊。

Just to add something I think about a fair amount as we think about the $33 trillion of home equity.

我想補充一點，當我們考慮 33 兆美元的房屋淨值時，我認為這個數字相當大。

The home equity extraction rate is half of what it was in 2021.

房屋淨值提取率是 2021 年的一半。

And I think that has been a factor of rates since we've just see less people go and tap that home equity to go and do things and I would suspect as rates start to come down and either the HELOC or refi markets start to open back up and that makes more sense for people and that delta might be less large between existing mortgage rates and what they could get.

我認為這是利率的一個因素，因為我們剛剛看到越來越少的人去利用房屋淨值來做事，我懷疑隨著利率開始下降，HELOC 或再融資市場開始重新開放這對人們來說更有意義，而且現有抵押貸款利率與他們可以獲得的抵押貸款利率之間的增量可能不會那麼大。

If we see that extraction rates start to even get back up towards its historical average, there would just be more cash available for people to do project.

如果我們看到開採率開始恢復到歷史平均水平，人們就會有更多的現金可以用來做專案。

Okay.

好的。

Thanks, guys.

謝謝，夥計們。

This concludes the question and answer session.

問答環節到此結束。

Thank you for joining today's conference call.

感謝您參加今天的電話會議。

You may now disconnect.

您現在可以斷開連線。