Fortune Brands Innovations Inc (FBIN) 2025 Q2 法說會逐字稿

Good afternoon, everyone. My name is Paul, and I will be your conference operator today. Welcome to the Fortune Brands second-quarter 2025 earnings conference call. (Operator Instructions)

大家下午好。我叫保羅，今天我將擔任您的會議主持人。歡迎參加財富品牌 2025 年第二季財報電話會議。（操作員指示）

At this time, I'll turn the call over to Curt Worthington, Vice President of Finance and Investor Relations.

現在，我將把電話轉給財務和投資者關係副總裁 Curt Worthington。

Curt, please go ahead.

科特，請繼續。

Good afternoon, everyone, and welcome to the Fortune Brands Innovations second-quarter earnings call. Hopefully, everyone has had a chance to review the earnings release. The earnings release and the audio replay of this call can be found on the Investors section of our fbin.com website.

大家下午好，歡迎參加財富品牌創新第二季財報電話會議。希望每個人都有機會審閱這份收益報告。收益報告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，並且受到某些風險和不確定性的影響，這些風險和不確定性可能導致實際結果與目前預期的結果存在重大差異。

These risks are detailed in our various filings with the SEC. The company does not undertake any obligation to update or revise any forward-looking statements, except as required by law. 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.

我們向美國證券交易委員會提交的多份文件中詳細說明了這些風險。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。除非另有說明，否則今天電話會議上對營業利潤或利潤率、每股收益或自由現金流的任何提及都將集中於我們在費用和收益之前的業績。

Please visit our website for our reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. With me on the call today are Nick Fink, our Chief Executive Officer; and John Baksht, our Chief Financial Officer.

請造訪我們的網站，以了解這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳。今天與我一起參加電話會議的還有我們的執行長尼克芬克 (Nick Fink) 和我們的財務長約翰巴克什特 (John Baksht)。

Following our prepared remarks, we have allowed time to address some questions. I will now turn the call over to Nick.

在我們準備好發言之後，我們留出了時間來回答一些問題。現在我將電話轉給尼克。

Nick?

缺口？

Thanks, Curt, and good afternoon to everyone. Thank you for joining our call. On today's call, I will start with the strategic actions that we are taking to generate growth while flexing our cost structure in response to market conditions. I will also provide an update on the tariff landscape and our mitigation strategy which is on track to fully offset the anticipated impact of tariffs this year and on an annualized basis.

謝謝，Curt，大家下午好。感謝您參加我們的電話會議。在今天的電話會議上，我將首先介紹我們為實現成長而採取的策略行動，同時根據市場情況調整我們的成本結構。我還將介紹關稅情勢和我們的緩解策略的最新情況，該策略預計將在今年和年度基礎上完全抵消關稅的預期影響。

In addition to covering our execution and the drivers of our above-market performance within the quarter, I will also share my thoughts around the remarkable progress that we have made in our multiyear transformation.

除了介紹我們的執行情況以及本季業績超出市場預期的驅動因素外，我還將分享我對我們多年轉型所取得的顯著進展的看法。

I'll close by discussing the macroeconomic environment and summarize our performance in the quarter. John will then review our financial results in more detail and provide color on our updated guidance for the remainder of 2025.

最後，我將討論宏觀經濟環境並總結我們本季的表現。隨後，約翰將更詳細地回顧我們的財務業績，並為 2025 年剩餘時間的最新指引提供詳細資訊。

In the second quarter, Fortune Brands delivered solid execution and outperformed our end market with impressive share gains across many of our businesses, including in our core water and outdoors businesses. In a market environment that continues to be dynamic, we have demonstrated our ability to respond quickly and decisively.

在第二季度，財富品牌表現穩健，表現優於我們的終端市場，我們的許多業務（包括核心水和戶外業務）的份額均取得了令人矚目的成長。在持續變化的市場環境中，我們展現了快速果斷的反應能力。

At the same time, we have maintained a relentless focus on our key strategic priorities and have continued to invest in our brands, accelerate innovation and drive operational excellence. We have made significant progress on our multiyear transformation into a highly aligned and efficient growth company, which I will detail shortly and are driving our strategy to grow the core and accelerate digital.

同時，我們始終堅持不懈地專注於我們的關鍵策略重點，並繼續投資於我們的品牌，加速創新並推動卓越營運。我們在多年轉型為一家高度協調、高效的成長型公司方面取得了重大進展，我將很快詳細介紹，並正在推動我們發展核心業務和加速數位化的策略。

By harnessing best-in-class consumer and customer insights, we can anticipate market trends and meet evolving needs with precision. Through focused investment in our leading brands and targeted innovation, we are driving product leadership and differentiation across key categories. At the same time, our ongoing digital transformation allows us to introduce and refine digital products and solutions with supercharged growth trajectories. In addition to accelerating growth, this transformation continues to improve our operational efficiency, strengthen relationships with consumers and customers, attract top talent and help us uncover new opportunities in a rapidly evolving world.

透過利用一流的消費者和客戶洞察力，我們可以預測市場趨勢並精確滿足不斷變化的需求。透過對領先品牌的重點投資和有針對性的創新，我們正在推動關鍵類別的產品領先地位和差異化。同時，我們正在進行的數位轉型使我們能夠推出和完善具有超強成長軌蹟的數位產品和解決方案。除了加速成長之外，這種轉型還將繼續提高我們的營運效率，加強與消費者和客戶的關係，吸引頂尖人才，並幫助我們在快速發展的世界中發現新的機會。

As a consequence, we believe Fortune Brands is well positioned to deliver long-term exceptional opportunities for all of our stakeholders. I am proud of our team's focus and commitment and of their agility in addressing the challenging near-term market dynamics. During the second quarter, we executed several key growth and efficiency initiatives across our portfolio. which I will detail shortly. We're already starting to see the positive impact from many of these actions, and we expect that we will continue to see the benefits throughout the remainder of the year and beyond.

因此，我們相信 Fortune Brands 有能力為所有利害關係人提供長期卓越的機會。我為我們團隊的專注和承諾以及他們應對具有挑戰性的短期市場動態的敏捷性感到自豪。在第二季度，我們在整個投資組合中實施了幾項關鍵的成長和效率措施。我將很快詳細介紹。我們已經開始看到這些行動帶來的正面影響，我們預計在今年剩餘時間及以後我們將繼續看到這些好處。

Starting with our water business. In the second quarter, we significantly outperformed our core North American market. We won new business as well as commitments for increased share with several large national builders with our powerful Moen brand.

從我們的水業務開始。在第二季度，我們的表現明顯優於核心北美市場。憑藉強大的摩恩品牌，我們贏得了新業務，並與幾家大型全國建築商達成了增加市場份額的承諾。

We also expanded our offerings in product categories targeted at the retail and e-commerce channels, which we expect will help us gain additional share over time. From a brand and product positioning standpoint, we continue to build momentum for the third and fourth quarters with multiple wins in both wholesale and retail, and we recently launched the important refresh of our market-leading Chateau collection. These initiatives and wins are a testament to the strength of our Moen and Hospital roll brands, our unique ability to manage diverse and complex channels and to the depth of our customer relationships.

我們也擴大了針對零售和電子商務通路的產品類別，我們預計這將有助於我們隨著時間的推移獲得更多的份額。從品牌和產品定位的角度來看，我們繼續為第三季和第四季累積動力，在批發和零售方面取得多項勝利，我們最近推出了市場領先的 Chateau 系列的重要更新。這些舉措和勝利證明了我們的摩恩和醫院卷品牌的實力、我們管理多樣化和複雜管道的獨特能力以及我們與客戶關係的深度。

In outdoors, we launched a new comprehensive brand collective for Outdoors brands. We expect the initiative to enhance our go-to-market strategy, accelerate innovation and drive growth by providing a cohesive platform for building professionals seeking innovative and trusted products and is a great example of the power of the aligned Fortune Brands structure.

在戶外領域，我們為戶外品牌推出了一個全新的綜合品牌集合。我們希望該計劃能夠為尋求創新和值得信賴的產品的專業人士提供一個有凝聚力的平台，從而增強我們的行銷策略，加速創新並推動成長，這也是協調一致的財富品牌結構力量的一個很好的例子。

In addition, we continue to roll out our large and perfect aisle reset in retail with great early results. By focusing on understanding why consumers purchase storm and screen doors and what attributes are most meaningful to them in this category, we were able to deliver an entirely new in-aisle experience with innovative product and we're already seeing both accelerated growth and share gains as a result.

此外，我們繼續在零售業推出大規模、完美的過道重置，並取得了良好的早期成果。透過重點了解消費者購買防風門和紗門的原因以及這一類別中哪些屬性對他們來說最有意義，我們能夠透過創新產品提供全新的過道體驗，並且我們已經看到了加速成長和份額成長。

Within security, we had a number of successful designs and product updates. During the quarter, we launched our master brand campaign from Astec and have already seen a 60% increase in our website traffic compared to the same time last year, which we expect to translate into growth in the coming quarters. This is our first major brand campaign in many years and was made possible by our newly aligned organizational structure.

在安全領域，我們有許多成功的設計和產品更新。在本季度，我們推出了 Astec 的主品牌活動，與去年同期相比，我們的網站流量已經增加了 60%，我們預計這將在未來幾季轉化為成長。這是我們多年來首次開展的大型品牌活動，這得益於我們新調整的組織結構。

We've also made focused investments in redesigning the retail shelf and product strategy from Ostrolac to see additional future growth in the channel. We expect our refreshed brand strategy will result in sales uplifts across our channels during the second half.

我們也專注於投資重新設計 Ostrolac 的零售貨架和產品策略，以期實現該通路未來的進一步成長。我們預計，更新後的品牌策略將在下半年帶來各通路的銷售額提升。

We are seeing the results of our renewed focus on everyday great execution. For example, in our important back-to-school category for security, we are seeing double-digit improvement versus last year as the team developed more focused action plans under its new leadership and executed them with excellence. It will take a little more time before the full benefits are realized, but the progress is evident and concrete. Turning to our digital business. We now have around 5 million active users.

我們看到了重新專注於日常出色執行的成果。例如，在我們重要的返校安全類別中，我們看到與去年相比兩位數的改善，因為團隊在新領導的領導下制定了更有針對性的行動計劃並出色地執行了這些計劃。雖然要實現全部效益還需要一些時間，但進展是明顯而具體的。轉向我們的數位業務。我們現在有大約 500 萬活躍用戶。

We continue to see solid momentum. And in the second quarter of 2025, we had around 220,000 digital device activations.

我們繼續看到強勁的勢頭。2025 年第二季度，我們的數位設備啟動量約為 22 萬台。

To reverse the flow, we expect to reach an important milestone in our digital journey with a pilot of a new subscription model during the third quarter. Designed to offer an attractive entry point for new flow customers, it will also provide us with a high-quality recurring revenue stream that has the potential to serve as a model for other portions of our connected business.

為了扭轉這一趨勢，我們預計將在第三季試行新的訂閱模式，從而達到數位化進程中的一個重要里程碑。旨在為新流量客戶提供一個有吸引力的切入點，它還將為我們提供高品質的經常性收入流，有可能成為我們其他互聯業務部分的典範。

We continue to secure new partnerships with leading insurance companies and are on track to more than double our sales through the insurance channel this calendar year. Additionally, we've concluded a study with a top 3 insurance carrier that again, supports our value proposition of dramatically reducing preventable water damage claims for insurers, and we expect the white paper on this to be published shortly.

我們繼續與領先的保險公司建立新的合作夥伴關係，並預計今年透過保險管道實現銷售額翻一番以上。此外，我們與排名前三的保險公司合作完成了一項研究，該研究再次支持了我們的價值主張，即大幅減少保險公司可預防的水損害索賠，我們預計有關該主題的白皮書將很快發布。

Flow has consistently demonstrated impressive growth, including over 70% growth in the second quarter, and the opportunity pipeline is robust and keeps growing as the value proposition becomes more widely understood. We also successfully launched our new Yale Smart Lock with Matter designed for Google Home. This is a significant milestone in our long-standing partnership with Google and the evolution of the original Nest by Yale lock. It is also the culmination of a multiyear collaboration between Google and Yale to bring a more approachable easy-to-use smart lock to market and will be the first product with the Google Home Preferred product batch. We see great potential for the future product road map and an opportunity to expand applications for the Yale Smart Luckitmatter.

Flow 一直表現出令人矚目的成長，包括第二季超過 70% 的成長，隨著價值主張得到更廣泛的理解，機會管道強勁且持續成長。我們也成功推出了專為 Google Home 設計的全新 Yale 智慧鎖。這是我們與 Google 長期合作以及原版 Nest by Yale 鎖演進過程中的一個重要里程碑。這也是Google和耶魯大學多年合作的成果，旨在將更平易近人、易於使用的智慧鎖推向市場，並將成為 Google Home Preferred 產品批次的首款產品。我們看到了未來產品路線圖的巨大潛力以及擴展耶魯智慧 Luckitmatter 應用的機會。

We expect to see good results from this business as these partnerships continue to ramp up, and we lap the discontinuation of the older generation Google product. Overall, our digital business is very strong. and we are on track to deliver significant year-over-year growth in 2025.

隨著這些合作關係的不斷加強以及老一代 Google 產品的停產，我們預計這項業務將取得良好的業績。總體而言，我們的數位業務非常強勁，我們預計在 2025 年實現顯著的同比增長。

As a result of slower load-ins, we now expect our digital sales to be around $250 million and expect annualized sales approaching $300 million in 2025. Our digital business remains a key differentiator for us, and we continue to expect this growth platform to only get stronger as we continue to build our scale and capabilities and drive awareness of these important and highly innovative products.

由於裝載速度較慢，我們現在預計數位銷售額約為 2.5 億美元，並預計 2025 年年銷售額將接近 3 億美元。我們的數位業務仍然是我們的一個關鍵差異化因素，我們繼續期待這個成長平台只會隨著我們繼續擴大規模和能力並提高對這些重要且高度創新的產品的認識而變得更加強大。

Moving to tariffs. The landscape continues to evolve but our core strategies remain intact and are delivering. We remain on track to fully offset the anticipated in-year impact in 2025 and the annualized impact in 2026 of tariffs through a combination of supply chain actions, cost-out opportunities and strategic pricing actions across our portfolio.

轉向關稅。情況不斷變化，但我們的核心策略依然保持不變並正在發揮作用。我們仍有望透過結合供應鏈行動、成本削減機會和整個投資組合的策略定價行動，完全抵消關稅在 2025 年的預期年內影響和 2026 年的年化影響。

We are employing a surgical approach to strike the right balance between price, demand elasticity and overall profitability in the light of a dynamic external environment. We're taking a long-term and highly strategic view, continuing to position ourselves as market leaders in categories where brands, quality and innovation really matter and are working to preserve pricing integrity for our partners.

我們正在採用精準的方法來根據動態的外部環境在價格、需求彈性和整體獲利能力之間取得適當的平衡。我們採取長遠和高度策略性的眼光，繼續將自己定位為品牌、品質和創新真正重要的領域的市場領導者，並努力為我們的合作夥伴保持價格的完整性。

We have accelerated investments in our revenue growth management and category management capabilities and expect to become even more agile and precise with our pricing strategies as a result. We have a proven track record of cost discipline, allowing us to focus our investments and flex our cost structure to deliver solid operating margins and fuel for growth.

我們加快了對收入成長管理和品類管理能力的投資，並期望我們的定價策略變得更加靈活和精確。我們在成本控制方面有著良好的記錄，這使我們能夠集中投資並靈活調整成本結構，從而實現穩健的營業利潤率和成長動力。

The second quarter was no different as we successfully navigated an uncertain consumer demand backdrop by delivering decremental margins in line with our expectations. As we outlined in our first quarter results, we have identified opportunities to control the pace of hiring related to our transition to our new headquarters campus, which will not only result in SG&A savings through the second half of 2025, but will also accelerate our efforts to create a more efficient and agile organization that will foster increased collaboration and ideation.

第二季也不例外，我們成功應對了不確定的消費者需求背景，並實現了符合預期的利潤率下降。正如我們在第一季業績中概述的那樣，我們已經找到了控制與向新總部園區過渡相關的招聘速度的機會，這不僅將在 2025 年下半年節省銷售、一般和行政費用 (SG&A)，而且還將加速我們努力創建一個更高效、更敏捷的組織，以促進更多的協作和創意。

Before I turn to the macro environment and provide an overview of our second quarter results, I want to take a moment to put our multiyear transformation to context and provide additional clarity on the remaining milestones ahead.

在我轉向宏觀環境並概述我們的第二季業績之前，我想花一點時間將我們多年的轉型放在背景中，並對未來剩餘的里程碑提供進一步的澄清。

Fortune Brands is evolving from a siloed operation with isolated strengths into a unified agile growth engine centered on brand-driven innovation, accelerated digital capabilities and shared organizational strengths while preserving the unique identity of each business and brand. This transformation began about three years ago and consists of three main pillars.

Fortune Brands 正在從一個各自為政、優勢孤立的營運模式，轉變為一個統一的敏捷成長引擎，以品牌驅動的創新、加速的數位化能力和共享的組織優勢為中心，同時保留每個業務和品牌的獨特身份。這一轉變始於大約三年前，主要包括三大支柱。

Our first pillar was centered around redefining and focusing our portfolio on high-growth segments of the market, driven by leadership in brand and innovation. This was achieved through our spin-off of MasterBrand Cabinets and the acquisition of Yelland MTech, which massively accelerated our luxury and digital transformation.

我們的第一個支柱是重新定義我們的投資組合，並將其重點放在高成長市場領域，以品牌和創新領導力為驅動力。這是透過我們剝離 MasterBrand Cabinets 和收購 Yelland MTech 實現的，這極大地加速了我們的奢侈品和數位轉型。

Next, we focused on creating a business unit-led organization, supported by operational centers of excellence, which allow the organization to prioritize our greatest opportunities and deploy best-in-class resources accordingly. Finally, our last pillar focuses on accelerating our execution and growth through our simplified leadership structure, one HQ initiative and our talent transition and upscaling.

接下來，我們專注於創建一個由業務部門主導的組織，並由卓越營運中心提供支持，這使得組織能夠優先考慮我們最大的機會並相應地部署一流的資源。最後，我們的最後一根支柱是透過簡化的領導結構、一個總部計畫以及人才轉型和升級來加速我們的執行和成長。

As of today, we have completed the first two pillars and are midway through executing the third pillar. I'm proud of the momentum that we have generated along the way, and I'm excited to fully unlock the tremendous growth potential of our company.

截至今天，我們已經完成了前兩個支柱，並且正在執行第三個支柱的一半。我為我們一路走來所取得的進展感到自豪，並很高興能夠充分釋放公司巨大的成長潛力。

Through these first two pillars, we crystallize the Fortune Brands advantage capabilities, which include category management, business simplification, global supply chain excellence and digital transformation. We emphasize collaborating with channel partners to drive performance, leveraging our leading brand portfolio to optimize market positioning and capture share.

透過前兩個支柱，我們具體化了財富品牌的優勢能力，包括品類管理、業務簡化、全球供應鏈卓越和數位轉型。我們強調與通路合作夥伴合作以提高業績，利用我們領先的品牌組合來優化市場定位並佔領份額。

Further, we streamlined operations to improve efficiency and agility. We have a robust North America focused supply chain with reduced reliance on China or single points of failure, allowing us to swiftly adapt to tariffs and other disruptions.

此外，我們簡化了營運以提高效率和靈活性。我們擁有以北美為中心的強大供應鏈，減少了對中國的依賴或單點故障，使我們能夠迅速適應關稅和其他幹擾。

Finally, we have been accelerating digital product development and integrating data science, technology and analytics to enhance pricing strategies, speed to market-and customer engagement.

最後，我們一直在加速數位產品開發並整合數據科學、技術和分析，以增強定價策略、上市速度和客戶參與。

This year, we initiated the third pillar of our transformation, focused on reaccelerating our execution and growth through a simplified leadership structure and a transition to a new unified campus in the Chicago area. Our new structure and leadership team are in place and are highly aligned and energized focusing on our innovation, solidifying our channel partnerships and working to continually elevate our operational excellence.

今年，我們啟動了轉型的第三大支柱，重點是透過簡化領導結構和向芝加哥地區新的統一園區過渡來重新加速我們的執行力和成長。我們的新結構和領導團隊已經到位，高度協調、充滿活力，專注於我們的創新、鞏固我們的通路合作夥伴關係並努力不斷提升我們的卓越營運。

As our team builds momentum on these initiatives, I am confident that this will translate to continue above-market performance over the long term. While we are executing on the one headquarters transition, we are taking a very thoughtful approach to ensure continuity of institutional knowledge among our associates while maintaining laser focus on our operations and customer relationships. I want to recognize and acknowledge the tremendous efforts of our entire team in helping us ensure a smooth transition to our new headquarters. It is because of their contributions that we are in this position to take Fortune Brands to the next stage of our transformation.

隨著我們的團隊在這些舉措上不斷累積動力，我相信這將轉化為長期持續高於市場的表現。在執行總部過渡的同時，我們採取了非常周到的方法來確保員工之間機構知識的連續性，同時保持對我們的營運和客戶關係的高度關注。我要認可並感謝我們整個團隊為幫助我們確保順利過渡到新總部所做的巨大努力。正是因為他們的貢獻，我們才有能力帶領 Fortune Brands 進入轉型的下一個階段。

At the same time, I continue to be amazed by the exceptional quality of the talent we are attracting to the organization since we made the one headquarters announcement earlier this year. Coupled with our outstanding legacy talent, I'm confident our highly engaged and energized workforce will drive exceptional results. We expect this pillar of our transformation will extend into 2026 as we complete the headquarters move ahead of schedule.

同時，自從我們在今年稍早宣佈設立一個總部以來，我們吸引到的優秀人才的數量一直令我感到驚訝。加上我們傑出的傳統人才，我相信我們高度敬業和充滿活力的員工隊伍將帶來卓越的成果。隨著我們提前完成總部搬遷，我們預計這股轉型支柱將延續至 2026 年。

Turning now to our economic outlook. From a macroeconomic perspective, we continue to see broader uncertainty weigh on consumer demand. This has been evident in the monthly trends for single-family new construction and repair and remodel activity through the second quarter as home buyers and home owners are hesitant to invest in the current environment.

現在來談談我們的經濟展望。從宏觀經濟角度來看，我們持續看到更廣泛的不確定性對消費者需求造成壓力。由於購屋者和房主在當前環境下不願投資，這一點在第二季單戶住宅新建和維修及改造活動的月度趨勢中得到了明顯體現。

However, we are encouraged by more recent improving data points for R&R spending. Looking beyond the near-term uncertainty, the intermediate and longer-term fundamentals for our sector remain extremely attractive, marked by significant underbuilt in the US

然而，近期 R&R 支出數據有所改善，這令我們感到鼓舞。除了短期不確定性之外，我們行業的中期和長期基本面仍然極具吸引力，其中美國市場存在顯著的建設不足。

housing stock and historically elevated home equity values, which point to a multiyear pent-up demand for our core products.

房屋存量和歷史上較高的房屋淨值，這表明對我們的核心產品存在多年被壓抑的需求。

In addition, our strategy remains to build out new idiosyncratic growth platforms, less tied to macro concerns, such as connected platforms and luxury products, which offer compelling value to customers and create additional value streams that augment our core businesses.

此外，我們的策略仍然是建立新的、獨特的成長平台，較少關注宏觀問題，例如互聯平台和奢侈品，這些平台為客戶提供極具吸引力的價值，並創造額外的價值流來增強我們的核心業務。

Turning to our second quarter performance. Fortune Brands outperformed our end market with impressive share gains in our core water and outdoors businesses. Excluding China, we estimate that we outperformed the end market for our products by over 200 basis points and we returned to positive point-of-sale growth across water and outdoors.

談談我們第二季的表現。財富品牌在我們的終端市場中表現優於我們，核心水和戶外業務的份額獲得了顯著增長。除中國外，我們估計我們的產品終端市場表現超出200多個基點，並且我們在水上和戶外銷售點恢復了正增長。

Net revenue was $1.2 billion, down 3% versus the second quarter of 2024 or down 1% excluding the impact of China. We achieved these above-market results as we gained share in core product categories and built momentum in connected products. We effectively balanced tariff-related pricing actions with strategic promotional activity and leveraged our channel partnerships to deliver value to our customers and consumers. Additionally, we focused on everyday great execution to maintain our strong balance sheet by managing our cost structure and deliver decremental margins consistent with our targets.

淨營收為 12 億美元，較 2024 年第二季下降 3%，若不計中國影響則下降 1%。由於我們在核心產品類別中獲得了份額並在互聯產品中建立了發展勢頭，我們取得了高於市場的表現。我們有效地平衡了與關稅相關的定價行動與策略促銷活動，並利用我們的通路合作夥伴關係為我們的客戶和消費者提供價值。此外，我們專注於日常的出色執行，透過管理成本結構來維持強勁的資產負債表，並實現與我們的目標一致的遞減利潤率。

Our operating income was $199 million, and our operating margin was 16.5%. Our earnings per share were $1. Turning now to our individual business results. Starting with Water. Excluding the impact of China, the segment saw net sales growth of 2%, driven by strong results in Millen North America and House of Roll.

我們的營業收入為 1.99 億美元，營業利益率為 16.5%。我們的每股收益為 1 美元。現在談談我們各自的業務成果。從水開始。不計中國的影響，該部門淨銷售額增長 2%，這得益於 Millen North America 和 House of Roll 的強勁業績。

Net sales declined 2%, including the impact of China as the Chinese residential construction market was weaker than anticipated. Water point-of-sale outperformed the market and was up slightly, excluding China, compared to the broader market, which we estimate was down low-single digit to mid-single digit. Our core Moen business clearly outperformed the market and gained share with retail point-of-sale up low-single digit and we continue to see excellent brand recognition and loyalty in our retail business, especially among pro consumers.

淨銷售額下降了 2%，其中包括中國住宅建築市場弱於預期的影響。與大盤相比（不包括中國），水銷售點表現優於市場，略有上漲，我們估計大盤下跌了低個位數至中個位數。我們的核心摩恩業務明顯優於市場，零售銷售點份額增長了低個位數，我們繼續看到我們的零售業務具有出色的品牌認知度和忠誠度，尤其是在專業消費者中。

We recently commissioned a study to evaluate the strength of our Moen brand with the Pro. The study confirmed that the Pro consumer strongly prefers the Moen brand on the basis of Moen's quality, reliability, customer service and warranty programs. In fact, our research indicates that 70% of Pros would change their shopping habits, if Moen, their preferred brand is unavailable.

我們最近委託進行了一項研究來評估 Moen 品牌與 Pro 的實力。研究證實，專業消費者基於摩恩的品質、可靠性、客戶服務和保固計畫而強烈青睞摩恩品牌。事實上，我們的研究表明，如果他們首選的品牌 Moen 買不到，70% 的專業人士會改變他們的購物習慣。

Our US luxury business, again, performed well as the higher-end consumer remains resilient and continues to choose products based on craftsmanship, design and brand prestige, demonstrating demand that is less influenced by price sensitivity in the housing market and more by lifestyle alignment.

我們的美國奢侈品業務再次表現良好，因為高端消費者保持韌性，並繼續根據工藝、設計和品牌聲望來選擇產品，這表明需求受房地產市場價格敏感性的影響較小，而更多地受到生活方式的影響。

Our House of Roll brand is the most highly rated with designers and leads on brand perception for luxury, trust and innovation. Point-of-sale for House of Roll was up an impressive high-single digits, which compares very favorably to the broader market which we estimate was down low-single digits. We're still in the early innings of building this business into a global luxury powerhouse. Looking forward to the remainder of 2025, we expect Moen to benefit from the newly won business with large national builders and several large retail promotional events that we were awarded for the second half of 2025.

我們的 House of Roll 品牌在設計師中評價最高，在奢華、信任和創新方面引領品牌認知。House of Roll 的銷售點出現了令人印象深刻的高個位數成長，與我們估計的低個位數下降的大盤相比，這一表現非常有利。我們仍處於將這個企業打造成為全球奢侈品巨頭的初期階段。展望 2025 年剩餘時間，我們預計摩恩將受益於與大型全國建築商的新業務以及我們在 2025 年下半年獲得的幾場大型零售促銷活動。

We still expect choppiness as the market adjusts to tariff pricing and consumer confidence normalizes, but we are well positioned for long-term share growth, underpinned by our great portfolio and improved execution. Finally, our luxury brands exited the second quarter with excellent momentum, which we expect to build upon in the second half.

隨著市場適應關稅定價和消費者信心恢復正常，我們仍然預期會出現波動，但憑藉我們出色的產品組合和改進的執行力，我們已為長期份額成長做好了準備。最後，我們的奢侈品牌在第二季度表現出色，我們預計下半年將繼續保持這一勢頭。

Turning to outdoors. We had a strong second quarter with low-single-digit point-of-sale growth, outpacing our core addressable markets, which we estimate were down low-single digits during the quarter. This was offset by lower channel inventory levels versus the second quarter of 2024, which resulted in a 3% decline in sales for outdoors compared to last year.

轉向戶外。我們在第二季表現強勁，銷售點成長率達到低個位數，超過了我們的核心目標市場，我們估計核心目標市場在本季的成長率為低個位數。與 2024 年第二季相比，通路庫存水準較低，抵消了這一影響，導致戶外銷售額與去年相比下降了 3%。

Our market outperformance was driven by Thermatry doors, which had very strong performance in retail and wholesale, and Larson as our licin perfect aisle continued to roll out and drive meaningful outperformance as we reinvigorated an entire category. We also saw a very strong wholesale demand for decking towards the end of the quarter and coming into July.

我們的市場優異表現得益於 Thermatry 門，該門在零售和批發領域表現非常強勁，而 Larson 作為我們完美的通道，繼續推出並推動有意義的優異表現，因為我們重振了整個類別。我們也看到本季末和 7 月對甲板的批發需求非常強勁。

Looking forward to the remainder of 2025, we are optimistic about the solid momentum being built across outdoors. Outdoors brands have a very robust and vertically integrated North American and US supply chain footprint and we expect that this will continue to be a significant differentiator for us, particularly in fiberglass doors as cheap Chinese import inventory dwindles.

展望 2025 年剩餘時間，我們對戶外活動的強勁發展勢頭充滿信心。戶外品牌擁有非常強大且垂直整合的北美和美國供應鏈足跡，我們預計這將繼續成為我們的一個顯著差異化因素，特別是在玻璃纖維門領域，因為廉價的中國進口庫存正在減少。

For Therma-Tru, we are seeing incremental demand for slab doors from distributor and wholesale customers, which we expect to accelerate through the second half of the year as tariffs take full effect. Finally, our Security segment sales decreased 7% in the quarter, primarily due to market softness, destocking and a first half headwind from prior execution challenges in 2024, which have been addressed. This was partially offset by our commercial and professional business as well as the e-commerce channel where we gained share across all of our product categories.

對於 Therma-Tru，我們看到經銷商和批發客戶對平板門的需求不斷增加，隨著關稅的全面生效，我們預計今年下半年這種需求將會加速成長。最後，我們的安全部門銷售額在本季度下降了 7%，這主要是由於市場疲軟、去庫存以及 2024 年上半年執行挑戰的不利影響（這些挑戰已解決）。這在一定程度上被我們的商業和專業業務以及電子商務管道所抵消，我們在這些管道中獲得了所有產品類別的份額。

Looking forward to the remainder of 2025, we expect to benefit from the ramp-up of the new Yale Smart Lock with matter, including with Google. We also see tremendous opportunity to capitalize on the branding investments from the past year to expand share in retail and e-commerce. We have line of sight to new retail customer wins during the second half that we expect to contribute to our results this year and to carry into 2026.

展望 2025 年剩餘時間，我們預計將受益於包括Google在內的新型耶魯智慧鎖的普及。我們也看到了利用過去一年的品牌投資來擴大零售和電子商務份額的巨大機會。我們預計下半年將贏得新的零售客戶，這將對我們今年的業績做出貢獻，並延續到 2026 年。

Under new and refocused leadership, we have realigned our general management organizations to drive direct accountability and have seen excellent momentum with our customers, which we expect will lead to incremental growth in the second half. As I mentioned earlier, with respect to back-to-school, we're already seeing the initial results of our focus on everyday great execution.

在新的、重新定位的領導下，我們重新調整了整體管理組織，以推動直接問責，並看到了客戶的良好發展勢頭，我們預計這將在下半年帶來增量成長。正如我之前提到的，關於返校，我們已經看到了我們專注於日常出色執行的初步成果。

Additionally, from a year-over-year growth perspective, we expect to benefit from easier comparisons in the second half as we lap the impact of destocking in last year's execution issues as well as other onetime events.

此外，從年成長的角度來看，我們預計下半年的比較會更容易，因為我們會將去年的執行問題以及其他一次性事件中去庫存的影響考慮進去。

To recap, I'm encouraged by our results. the progress we made on our strategic priorities and our solid market outperformance during the second quarter. Our agility in addressing the impact of tariffs, coupled with our commitment to innovation, operational excellence and cost management put us in an excellent position to navigate the current environment and strengthen our position going forward. Throughout our multiyear transformational effort, our underlying value proposition has remained the same. Our brands are synonymous with innovation, trust and design.

總而言之，我的業績令我感到鼓舞，我們在第二季度在策略重點上取得了進展，並且在市場中表現出色。我們能夠靈活應對關稅的影響，再加上我們致力於創新、卓越營運和成本管理，這使我們處於有利地位，能夠應對當前環境並加強我們未來的地位。在我們多年的轉型努力中，我們的基本價值主張始終如一。我們的品牌是創新、信任和設計的代名詞。

We aspire to be a true partner for our customers and are committed to meeting the changing needs of our consumers. And finally, we have inherent secular growth drivers that we expect will allow us to gain share and generate above-market returns in the long term.

我們渴望成為客戶的真正合作夥伴，並致力於滿足消費者不斷變化的需求。最後，我們擁有內在的長期成長動力，我們預計這將使我們在長期內獲得市場份額並產生高於市場的回報。

As we finalize the last leg of our transformation and accelerate execution, this is a great time to be at Fortune Brands. I couldn't be more excited for the future of our company, and I'm confident in our team's ability to execute on our strategic priorities with excellence.

隨著我們完成轉型的最後一步並加快執行，這是加入 Fortune Brands 的好時機。我對我們公司的未來感到無比興奮，我相信我們的團隊有能力出色地執行我們的策略重點。

I will now turn the call over to Jon.

現在我將把電話轉給喬恩。

Thank you, Nick.

謝謝你，尼克。

Before I begin my discussion of our financial results, I'd like to take a moment to thank Nick and the broader Fortune Brands team for such a warm welcome to the company over the past three months. I've been extremely impressed by the extraordinary talent throughout the organization and the shared sense of purpose felt by all our associates. All the positive attributes that I observed from the outside have only been reinforced. I'm excited to join this organization at such an impactful inflection point for the company.

在我開始討論我們的財務表現之前，我想花點時間感謝尼克和財富品牌團隊在過去三個月對公司的熱烈歡迎。整個組織的非凡才華和所有同事所感受到的共同目標感給我留下了極為深刻的印象。我從外部觀察到的所有正面屬性都得到了強化。我很高興能夠在公司如此重要的轉折點加入這個組織。

I was initially drawn to Fortune Brands by the foundational strengths of the company, the enduring brands, high margin profile and strong free cash flow generation, among many others, overlaying the innovation story and upside growth potential with the connected business made the opportunity even more compelling.

我最初被財富品牌吸引是因為該公司的根本實力、持久的品牌、高利潤率和強勁的自由現金流生成等諸多因素，而創新故事和上行增長潛力與互聯業務的結合使得這個機會更加引人注目。

Nick described the three pillars in the ongoing transformation that is entering the third phase, and my initial interactions with various stakeholders, I believe one aspect that's underestimated is the value that will be created by moving from a holding company structure to an operating company structure, of which the one HQ initiative is a part of. In the quarter-to-quarter world of public companies, that value will always be visible immediately, and the returns won't be realized in a straight line, but I'm confident those along for the journey will be rewarded over the long term.

尼克描述了正在進入第三階段的持續轉型的三大支柱，以及我與各個利益相關者的初步互動，我認為一個被低估的方面是從控股公司結構轉變為運營公司結構所創造的價值，而「一個總部」計劃就是其中的一部分。在上市公司的季度報告中，這種價值總是會立即顯現，回報不會直線實現，但我相信，參與其中的人將在長期內獲得回報。

We're taking this opportunity to build out a best-in-class platform across the portfolio, starting with a simplified and standardized data layer, feeding modern systems, leveraging AI with streamlined and standardized processes run by a passionate team with the shared vision for innovation and excellence. This next stage in our transformation will drive improved insights into the business. with improved analytics, which will ultimately drive enhanced financial performance, returns and value creation.

我們藉此機會在整個產品組合中構建一流的平台，從簡化和標準化的數據層開始，為現代系統提供信息，利用人工智能和精簡和標準化的流程，由一支充滿熱情的團隊運營，共同追求創新和卓越。我們轉型的下一階段將透過改進的分析來加深對業務的洞察力，最終提高財務績效、回報和價值創造。

I'm grateful to be a part of such a talented and collaborative leadership team, and I'm excited about our opportunity to drive additional momentum as the team comes together at our new campus. Now let me discuss our second quarter results.

我很榮幸能夠成為這樣一支才華橫溢、善於合作的領導團隊的一員，並且我很高興有機會在新園區團隊齊心協力的情況下推動進一步的發展。現在讓我討論一下我們的第二季業績。

As a reminder, my comments will focus on results before charges and gains to best reflect ongoing business performance. Additionally, comparisons will be made against the same period last year, unless otherwise noted.

提醒一下，我的評論將重點放在費用和收益之前的結果，以最好地反映持續的業務表現。此外，除非另有說明，否則將與去年同期進行比較。

In the second quarter, sales were $1.2 billion, down 3% in total and down 1% excluding China. Consolidated operating income was $199 million, down 8%. Total company operating margin was 16.5%, and earnings per share were $1. Our effective tax rate was elevated this quarter at 31% due to withholding tax triggered by a repatriation of cash from China as we previewed last quarter. On a full year basis, we anticipate an effective tax rate between 26.5% and 27.5%.

第二季銷售額為12億美元，整體下降3%，不包括中國地區則下降1%。綜合營業收入為 1.99 億美元，下降 8%。公司總營業利益率為 16.5%，每股收益為 1 美元。正如我們在上個季度預測的那樣，由於從中國匯回現金引發的預扣稅，本季我們的有效稅率上升至 31%。從全年來看，我們預計有效稅率在 26.5% 至 27.5% 之間。

Our second quarter sales performance was mostly driven by low-single-digit point-of-sale declines, which was indicative of the broader demand environment. Excluding China, our POS was essentially flat. Importantly, our POS performance in the quarter surpassed the market, reflecting the strength of our brands and the solid execution across our teams.

我們第二季的銷售業績主要受到低個位數銷售點下降的影響，這顯示了更廣泛的需求環境。除中國外，我們的 POS 基本持平。重要的是，本季我們的 POS 表現超越了市場，反映了我們品牌的實力和我們團隊的穩健執行力。

Turning to our segments. Beginning with water. Sales were $647 million, down 2%, but up 2% excluding China. Our results reflect POS, which was up slightly, excluding China, and channel inventory improvement in wholesale and retail as well as the impact of disciplined pricing actions across our portfolio. Within our Water segment, Nolan and House of Roll outperformed the market.

轉向我們的部分。從水開始。銷售額為 6.47 億美元，下降 2%，但不包括中國市場則成長 2%。我們的業績反映了 POS（不包括中國）略有上升，批發和零售通路庫存改善，以及我們整個投資組合中嚴格的定價行動的影響。在我們的水務部門中，諾蘭 (Nolan) 和 House of Roll 的表現優於市場。

Water's operating income was $165.5 million, an increase of 8% compared to last year. Operating margin was 25.6%, up 230 basis points as productivity improvements from strategic sourcing initiatives, manufacturing efficiencies and lower SG&A were able to offset the lower sales revenue.

水務部門的營業收入為 1.655 億美元，比去年同期成長 8%。營業利益率為 25.6%，上漲 230 個基點，因為策略採購計畫、製造效率的提高和銷售、一般及行政費用的降低帶來的生產力提高能夠抵消銷售收入的下降。

For the full year, we are targeting operating margins to be 23% to 24%. Turning to outdoors. Sales were $379 million, down 3% as reduced channel inventories offset low-single-digit POS growth during the quarter. We made significant progress in the rollout of our Larson perfect aisle reset, which was largely complete at the end of the second quarter. Initial results have exceeded our expectations and have also led to share gains.

就全年而言，我們的目標是營業利潤率達到 23% 至 24%。轉向戶外。銷售額為 3.79 億美元，下降 3%，因為通路庫存減少抵消了本季度 POS 的低個位數成長。我們在推出 Larson 完美過道重置方面取得了重大進展，該重置已於第二季末基本完成。初步結果超出了我們的預期，也帶來了股價上漲。

Outdoor segment operating income was $48.6 million, down 23% from the prior year quarter. The primary driver of the decline in operating income was the lag effect of higher cost inventory from the second half of 2024, flowing through our cost of sales during the second quarter.

戶外部門營業收入為 4,860 萬美元，較去年同期下降 23%。營業收入下降的主要原因是 2024 年下半年庫存成本上升的滯後效應，並流向了第二季的銷售成本。

Q2 segment operating margin was 12.8%, and we are targeting 14% to 15% for the full year. In Security, our second quarter sales were $178 million and declined 7%, driven by mid-single-digit POS declines, which largely reflect a first half headwind from prior execution challenges in 2024.

第二季分部營業利益率為 12.8%，我們的目標是全年達到 14% 至 15%。在安全領域，我們第二季的銷售額為 1.78 億美元，下降了 7%，原因是 POS 銷售額出現了中等個位數的下降，這在很大程度上反映了 2024 年上半年執行挑戰的不利影響。

We saw solid growth in our e-commerce channel, where we gained share across all product categories during the quarter. Segment operating income was $26.3 million, down 27% and segment operating margin was 14.8%, reflecting the impact of lower volumes as well as increased investment in branding and advertising for Master Lock and SentrySafe.

我們的電子商務通路實現了穩健成長，本季所有產品類別的市佔率均有所成長。分部營業收入為 2,630 萬美元，下降 27%，分部營業利潤率為 14.8%，反映了銷售下降以及對 Master Lock 和 SentrySafe 的品牌和廣告投資增加的影響。

It's important to note that these investments are effectively a reset of our marketing strategy with the brands and represent the largest investment in these brands in several years. For the full year, we are targeting operating margins of 16.5% to 17.5%.

值得注意的是，這些投資其實是我們對這些品牌行銷策略的重新調整，也是幾年來對這些品牌的最大投資。我們全年的營業利益率目標為 16.5% 至 17.5%。

Turning to the balance sheet. We are managing our capital structure with the objective of balancing our cost of capital, returns and overall flexibility.

轉向資產負債表。我們管理資本結構的目的是平衡資本成本、回報和整體靈活性。

Our balance sheet remains solid with cash of $235 million, net debt of $2.6 billion and our net debt-to-EBITDA leverage of 2.8 times. We continue to expect our net debt to EBITDA to be between 2.2 times and 2.5 times at year-end, demonstrating the strong free cash flow generation of the business, during the quarter, we paid off our $500 million 2025 senior notes through a combination of commercial paper borrowings and cash on hand. We also have $613 million available on our revolver at quarter end. In the second quarter, we returned $93 million to shareholders, including $63 million in share repurchases. We have spent $238 million on share repurchases through the second quarter year-to-date.

我們的資產負債表依然穩健，現金為 2.35 億美元，淨負債為 26 億美元，淨負債與 EBITDA 比率為 2.8 倍。我們繼續預計，到年底，我們的淨債務與 EBITDA 比率將在 2.2 倍至 2.5 倍之間，這表明業務擁有強勁的自由現金流，在本季度，我們透過商業票據借款和現金相結合的方式償還了 5 億美元的 2025 年優先票據。截至本季末，我們的循環信貸帳戶中還有 6.13 億美元可用。第二季度，我們向股東返還了 9,300 萬美元，其中包括 6,300 萬美元的股票回購。今年第二季迄今，我們已花費 2.38 億美元用於股票回購。

Our second quarter free cash flow was approximately $119 million, reflecting a seasonal uplift from first quarter. Before turning to our outlook, I'll provide an update on our tariff exposure. Based on tariff rates as of July 29 and assuming country-specific rate changes that have been announced on or prior to July 29 take effect on August 1, and we anticipate unmitigated impact of approximately $80 million in 2025 and $260 million on an annualized basis. Of the anticipated $260 million of annualized impact, approximately half is related to China and the balance is rest of world.

我們第二季的自由現金流約為 1.19 億美元，較第一季呈現季節性成長。在談到我們的展望之前，我將提供有關我們的關稅風險的最新情況。根據截至 7 月 29 日的關稅稅率，並假設 7 月 29 日或之前宣布的特定國家的稅率變化將於 8 月 1 日生效，我們預計 2025 年的未緩解影響約為 8,000 萬美元，年化影響為 2.6 億美元。預計年化影響為 2.6 億美元，其中約一半與中國有關，其餘則與世界其他地區有關。

Consistent with our previous guidance, we continue to expect to fully mitigate the anticipated in-year and annualized impacts. As a predominantly North America-based manufacturer, our footprint leaves us very well positioned to both service our customers at a high level and take share in the current environment. Since 2017, we have reduced our spend from China by over 60%. And by end of the year, we continue to expect our China COGS to be around 10%.

與我們先前的指導一致，我們仍然期望完全減輕預期的年內和年度影響。作為一家主要位於北美的製造商，我們的業務範圍使我們能夠為客戶提供高水準的服務，並在當前環境中佔據有利地位。自2017年以來，我們在中國的業務支出減少了60%以上。到今年年底，我們預計中國市場的銷貨成本仍將達到 10% 左右。

Turning now to our outlook. Over the past quarter, we have taken decisive actions to mitigate the impact of tariffs and have worked with our customers and suppliers to find win-win solutions to address the challenges.

現在談談我們的展望。在過去的一個季度，我們採取了果斷行動來減輕關稅的影響，並與我們的客戶和供應商合作，尋找雙贏的解決方案來應對挑戰。

In the process, we have progressed our expectations for 2025 performance and believe we have improved visibility into the range of potential outcomes for the remainder of the year. As a result, we are using this opportunity to provide updated full year 2025 guidance.

在此過程中，我們提高了對 2025 年業績的預期，並相信我們對今年剩餘時間的一系列潛在結果有了更清晰的了解。因此，我們利用這個機會提供更新的 2025 年全年指引。

We expect full year net sales to be flat to down 2%, and we expect full year EPS within the range of $3.75 to $3.95. Our guidance is driven by our view on the markets. For 2025, we expect the global market for our products to be down 4% to down 2%, with the US housing market to be down 4% to down 2%. Within this market forecast, we expect US repair and remodel to be down 3% to down 1% and US single-family new construction to be down 6% to down 5%.

我們預計全年淨銷售額將持平或下降2%，全年每股收益預計介於3.75美元至3.95美元之間。我們的預期是基於我們對市場的判斷。到 2025 年，我們預計我們產品的全球市場將下降 4% 至 2%，其中美國房地產市場將下降 4% 至 2%。在這項市場預測中，我們預計美國維修和改造將下降 3% 至 1%，美國單戶住宅新建將下降 6% 至 5%。

Compared to our initial guidance from February, the most notable change is US single-family new construction, which at the start of the year, we had forecast to be down 2% to up 2%. This incorporates the single-family new construction trends observed during the first half.

與我們 2 月的初步預測相比，最顯著的變化是美國獨棟住宅新建量，我們在年初曾預測該數字將從下降 2% 上升至增長 2%。這涵蓋了上半年觀察到的單戶住宅新建趨勢。

We've reduced our expectations for the other primary metrics by approximately 1 percentage-points to 2 percentage-points each. Looking ahead to the second half, we expect our results to benefit from market outperformance in each of our segments, with momentum carrying into the third and fourth quarters.

我們將其他主要指標的預期分別降低了約 1 個百分點至 2 個百分點。展望下半年，我們預期我們的業績將受益於各部門的市場優異表現，而這一勢頭將延續到第三季和第四季。

These are underpinned by the pull-through of customer commitments in water, highly visible incremental demand in outdoors and new product launches and brand campaigns in security. We also benefit from lapping of onetime events that impacted our results in the second half of last year, particularly in outdoors and security.

這些都是由客戶在水上的承諾、戶外領域高度明顯的增量需求以及安全領域的新產品發布和品牌活動所支撐的。我們也受益於去年下半年影響我們業績的一次性事件的解決，特別是在戶外和安全方面。

Throughout the cycle, we are continuing to invest for growth and committed to delivering shareholder value. That said, we're also highly aware that the external environment remains very dynamic and that the consumer is cautious and sensitive to volatility.

在整個週期中，我們將繼續投資以實現成長並致力於實現股東價值。儘管如此，我們也非常清楚，外部環境仍然非常動態，消費者對波動持謹慎和敏感的態度。

Overall, we remain thoughtfully optimistic as we have good line of sight about our ability to address what is in our control. While the long-term fundamentals of our market continue to be attractive, the near-term consumer demand environment remains dynamic.

總體而言，我們仍然保持著深思熟慮的樂觀態度，因為我們對自己解決可控問題的能力有很好的認識。雖然我們市場的長期基本面仍然具有吸引力，但短期消費需求環境仍然充滿活力。

As we have in prior periods of uncertainty, we are focused on outperforming our markets, thoughtfully managing expenses while continuing to make key strategic investments and generating cash. In conclusion, our teams continue to execute at a high level across our businesses, and we remain well positioned to capitalize on future growth opportunities. As we have highlighted, the market backdrop continues to be dynamic and the tariff-related uncertainty continues to weigh on consumer sentiment.

正如我們在之前的不確定時期所做的那樣，我們專注於超越市場，精心管理開支，同時繼續進行關鍵的策略投資並產生現金。總之，我們的團隊繼續在各個業務領域保持高水準的執行力，我們仍然能夠充分利用未來的成長機會。正如我們所強調的，市場背景持續動態，與關稅相關的不確定性繼續影響消費者情緒。

Despite these challenges, our second quarter performance demonstrates the resilience of our business and Fortune Brands' ability to deliver sustainable results. In addition, we reiterate our expectation to fully offset the anticipated impact of tariffs in 2025 as well as in 2026. We remain confident in the long-term outlook for our core end markets and our ability to continue to generate shareholder value into the future.

儘管面臨這些挑戰，我們第二季的業績證明了我們業務的韌性以及財富品牌實現永續業績的能力。此外，我們重申我們的預期，在 2025 年和 2026 年完全抵消關稅的預期影響。我們對我們的核心終端市場的長期前景以及我們未來繼續為股東創造價值的能力仍然充滿信心。

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

我現在將把電話轉回給 Curt，讓他開始提問。

Thanks, John. That concludes our prepared remarks. We will now begin taking a limited number of questions. 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 re-enter the queue to ask additional questions.

謝謝，約翰。我們的準備好的演講到此結束。我們現在開始回答有限數量的問題。由於你們中可能有很多人想提問，我要求你們將初始問題限制為兩個，然後重新進入隊列以提出其他問題。

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

我現在將把電話轉回給接線生，開始問答環節。

Operator, can you open the line for questions? Thank you.

接線員，您可以開通熱線來回答問題嗎？謝謝。

We'll now be conducting a question-and-answer session.(Operator Instructions)

我們現在將進行問答環節。 （操作員指示）

Matthew Bouley, Barclays.

巴克萊銀行的馬修·布萊（Matthew Bouley）。

Good evening, everyone. Thanks for taking the questions. I wanted to start one to start out actually on the Connected Products business. I take a lot of promising progress that you spoke to, including that subscription model coming.

大家晚上好。感謝您回答這些問題。我實際上想創辦一家公司來開展互聯產品業務。我認為您提到的許多進展都很有希望，包括即將推出的訂閱模式。

So I would love to hear more detail on that. I think on the numbers, I think I heard you say the updated sales guide for this year is $250 million, but you still expect to get to that $300 million run rate. So just any more details on kind of the pluses and minuses that are impacting 2025 as you get all these initiatives coming through and you get to that run rate, kind of any early thoughts on how the business is shaping up perhaps for 2026.

所以我很想聽到更多關於這方面的細節。我認為從數字上來說，我聽到您說今年的最新銷售指南是 2.5 億美元，但您仍然希望達到 3 億美元的運行率。因此，當您實施所有這些舉措並達到運行率時，您能否詳細介紹對 2025 年產生影響的利弊，以及對 2026 年業務發展的任何初步想法。

Thank you.

謝謝。

Sure, Matt. Happy to jump in there and describe a little bit of what's going on. So firstly, super pleased with the connected results. We've invested heavily in the space in the last few years, and it's just great to see this momentum and scale continue to build, not just frankly, on the sales line, but just also the team that we've built, the digital fluency, the entire organization that's kind of come along for the journey with them. And then now the leverage of that knowledge like into the legacy business in terms of driving AI tools and processes into the business.

當然，馬特。很高興能跳進去並描述一下正在發生的事情。首先，我對連接結果非常滿意。過去幾年，我們在該領域投入了大量資金，很高興看到這種勢頭和規模不斷增強，坦率地說，不僅僅是在銷售線上，還包括我們建立的團隊、數字流暢度，以及與他們一起踏上旅程的整個組織。現在，我們可以利用這些知識，將人工智慧工具和流程引入傳統業務中。

With district of the connected business itself, I would say the performance is here you're right, $250 million is our expectation for the year, but the run rate we think we'll close out the year closer to $300 million. And as we look at the pipeline, I would say it's both broader and a little bit slower than we expected.

就互聯業務本身而言，我想說，業績表現就在這裡，您說得對，我們對今年的預期是 2.5 億美元，但我們認為今年的運行率將接近 3 億美元。當我們審視這個管道時，我會說它比我們預期的更寬，但速度也稍微慢一些。

So broader in that we're touching on even more space and opportunity than we had anticipated, more insurance partners coming into the mix, sort of more adjacencies in terms of areas that we can impact with the connected portfolio, including the recent launch of our connected lockout tagout portfolio and finding some huge white space there that we can go after.

更廣泛地說，我們觸及的領域和機會比我們預期的還要多，更多的保險合作夥伴加入進來，在我們可以透過互聯產品組合影響的領域方面有更多鄰接，包括最近推出的互聯上鎖掛牌產品組合，並在那裡找到了一些我們可以追逐的巨大空白。

And then learning that as we build this giant pipeline of opportunity and contracts that we've built, converting those into sales and driving that process. And so the teams are very, very focused on that bottom end of the funnel and that conversion piece. And then as you touched on, we're also very excited to be launching the subscription test this quarter. We think it's a win-win. Obviously, a win for us.

然後，我們了解到，當我們建立這個巨大的機會和合約管道時，我們會將其轉化為銷售並推動這一進程。因此，團隊非常非常關注漏斗的底端和轉換部分。正如您所提到的，我們也很高興在本季推出訂閱測試。我們認為這是一個雙贏的局面。顯然，這是我們的勝利。

to get people onto subscription recurring revenue, right, now at 5 million users plus.

讓人們訂閱經常性收入，對的，現在用戶已經超過 500 萬。

So that is a big part of the future. But our consumer research tells us it's a win for the consumer, too. They much prefer from the research, the lower entry point of a subscription to a onetime purchase. And so we think if this -- we want to test it and see if it works. But if it works, not only will help us accelerate sales and penetration, it's going to put the company on a really solid recurring revenue footing.

所以這是未來的重要組成部分。但我們的消費者研究告訴我們，這對消費者來說也是一個勝利。研究表明，他們更喜歡訂閱的較低門檻，而不是一次性購買。因此我們認為——我們想測試它並看看它是否有效。但如果它有效的話，它不僅可以幫助我們加速銷售和滲透，還可以為公司帶來真正穩固的經常性收入基礎。

So we're very, very excited about it. And then beyond the -- that piece also just the new partnership with Google. So sunsetting that older first-generation Google product, which a lot of which was sunsetted last year, which is a part of the headwind that we went through as that sunset before the new products came online. But with that hitting the market now, we think it's a really great product that's going to do some exciting things.

所以我們對此感到非常非常興奮。除此之外，還有與Google的新合作關係。因此，Google第一代舊產品即將停產，其中許多產品已於去年停產，這是我們在新產品上線前經歷的逆風之一。但隨著它現在進入市場，我們認為它是一款非常棒的產品，將會產生一些令人興奮的效果。

Okay. Great. No, that's really helpful. And then secondly, jumping over to the water business, and I wanted to ask around market share. It sounded like POS outperformed the market.

好的。偉大的。不，這真的很有幫助。其次，談到水務業務，我想詢問市場佔有率。聽起來 POS 的表現優於大盤。

I heard you say you won maybe some new business with large builders and there might be some offerings coming down the pike here, that would be targeted for retail I think, e-commerce as well. So maybe if you can just sort of level set us on what's happening with market share in the water business across your channels? And sort of what the impact of some of these wins may have as we think about the second half of the year?

我聽說您說您可能贏得了一些大型建築商的新業務，並且可能會推出一些產品，我認為這些產品將針對零售業，也針對電子商務。那麼，您能否向我們簡單介紹一下您所在通路中水業務的市佔率？當我們考慮今年下半年時，這些勝利可能會產生什麼樣的影響？

Sure. Happy to do that. So why don't I start with Moen. So as you mentioned, builder business. We saw some really nice performance out of the team, both getting increased commitment for share from existing as well as converting new and as you know, a very large business for us to see that continued conversion.

當然。很高興這樣做。那我為什麼不從摩恩開始呢？正如您所提到的，建築商業務。我們看到團隊表現非常出色，既獲得了現有客戶的份額承諾，也獲得了新客戶的轉換承諾，正如你所知，對於我們來說，這是一筆非常大的業務，我們看到這種持續的轉換。

And I think it really speaks to the strength of the ecosystem. It's the product, the support, the service, the warranty, the professional support and belief in the product. And so that came through very strongly I'm happy with that.

我認為這確實體現了生態系統的力量。它是產品、支援、服務、保固、專業支援和對產品的信任。所以這非常有力，我對此感到高興。

Retail performance, also very strong in the quarter. So very pleased, and we think that's just the beginning. We've done a lot to reinvigorate the work that we're doing with our retail partners. And I think we can elevate that even further. So a lot of focus from the team coming.

本季零售業績也非常強勁。我們非常高興，我們認為這只是一個開始。我們做了很多工作來重振我們與零售合作夥伴的合作。我認為我們可以進一步提升這一點。因此團隊會給予高度關注。

I think that will play out well through this year but really get some acceleration in '26. And then some opportunity, I think, still around e-commerce. I talked on the last call about how we had really started to enforce much stronger pricing discipline in e-commerce. And that takes time and it takes it takes discipline, frankly, is the word to stick to it and to enforce it. And so that, over time, as that discipline starts to stick and we're able to then go in and really win on the basis of products and our ability to optimize search and do problems in the right way, we expect it will be a tailwind in the future, but I think some more work for the team to do there.

我認為今年這一進程將會順利進行，但 26 年將會真正加速。我認為，電子商務方面仍然存在一些機會。我在上次電話會議上談到了我們如何真正開始在電子商務中實施更嚴格的定價紀律。這需要時間，也需要紀律，坦白說，就是堅持和執行它。因此，隨著時間的推移，當這種紀律開始堅持下去，我們就能夠在產品和優化搜尋以及以正確的方式解決問題的能力的基礎上真正取得勝利，我們預計這將成為未來的順風，但我認為團隊還有很多工作要做。

If I flip over to the House of Roll, really strong resilience with that luxury consumer. I mean, we saw excellent results out of the house world really delighted with the performance that the team has driven to continue to bring that to life in the portfolio and see that performance really compounding and growing into the back half of the year. So resilient with that end luxury consumer. And I think the portfolio is really just answering the consumer needs and the designer needs. So really good performance there.

如果我轉向 House of Roll，奢侈品消費者的彈性確實很強。我的意思是，我們看到了房屋世界的出色業績，我們對團隊的表現感到非常高興，團隊繼續在投資組合中發揮活力，並看到業績在下半年真正複合成長。最終奢侈品消費者的適應力非常強。我認為產品組合其實只是滿足了消費者和設計師的需求。所以那裡的表現真的很出色。

All right, thanks Nick. Good luck, guys.

好的，謝謝尼克。祝大家好運。

Thank you.

謝謝。

Susan Maklari, Goldman Sachs.

高盛的蘇珊馬克拉里 (Susan Maklari)。

Thank you. Good afternoon, everyone. My first question is on the Security segment. It sounds like you've had some really nice initiatives there as you're gaining in that e-commerce channel. Can you talk a bit about some of those retail wins as well in the second half? And how we should be thinking about this new launch and focus on the brand coming together in the next couple of quarters?

謝謝。大家下午好。我的第一個問題是關於安全的部分。聽起來你們在電子商務通路上取得了一些非常好的進展。您能否談談下半年零售業取得的一些勝利？我們該如何看待這次新產品的發布，並關注未來幾季品牌的整合？

Yeah. So just great question. And as a reminder, you have been on a journey with security. I mean we really set out, I think even way back over to the last Investor Day talking about how we were going to take this segment on a journey to really through some supply chain initiatives, rebuild the margin of the business. to create fuel for growth to then start to reinvest in brand.

是的。這個問題問得真好。提醒一下，您已經踏上了安全的旅程。我的意思是，我們真的開始了，我想甚至可以追溯到上一次投資者日，我們討論過如何帶領這一部門踏上一段旅程，真正通過一些供應鏈舉措，重建業務利潤率，創造增長動力，然後開始對品牌進行再投資。

As you see the margin profile now coming through, that gives us much more room to make those investments. And then through our kind of one Fortune Brands initiatives to bring this company together, we're not able to leverage our marketing expertise to really bring the first major refresh and brand campaign to security in several decades. And so we're very excited about where it's coming to Monster campaign.

正如您所看到的，現在的利潤率狀況為我們提供了更多的投資空間。然後，透過我們這種將公司整合在一起的財富品牌計劃，我們無法利用我們的行銷專業知識來真正實現幾十年來首次重大的更新和品牌安全活動。因此，我們對它在怪物戰役中的表現感到非常興奮。

As I mentioned on the call, we've seen a 60% uptick in in website visits. I think I mentioned on the last call, in Century Safe we're early experimenting around doing some work there. We saw double-digit uptick in website visits there translating into double-digit point-of-sale growth in that quarter.

正如我在電話中提到的，我們的網站訪問量增加了 60%。我想我在上次通話中提到過，我們在 Century Safe 進行了早期試驗，在那裡進行一些工作。我們看到該網站的訪問量出現了兩位數的增長，這意味著該季度的銷售點也出現了兩位數的增長。

So this stuff works. What you should expect from us is this campaign to now roll out not just above line, but all the way through the funnel with a very consistent, much clearer shelf set and product set and messaging to the consumer that allows them to navigate this category, which we do captain as the leader in a very simple way, where they can understand the value of the different price points of our product.

所以這個東西有效。您應該期望我們這次的活動不僅在線上推出，而且在整個銷售漏斗中都推出，以非常一致、更清晰的貨架設置和產品設置以及向消費者傳遞的信息，使他們能夠瀏覽這個類別，我們以非常簡單的方式引領這一類別，讓他們能夠了解我們產品不同價位的價值。

And we think that's going to be a really great opportunity. And so new leadership in there. A lot has been done to really reorient that business, drive accountability with the GMs inside of that business. And as we get through the headwinds of some of the execution issues last year, we think we get into the back half of this year, we're going to see some really solid performance, but that performance is really just building momentum into '26 and beyond.

我們認為這將是一個非常好的機會。那裡有新的領導階層。我們已做了很多工作來真正重新定位該業務，並推動該業務內部總經理的責任制。隨著我們克服了去年一些執行問題帶來的阻力，我們認為進入今年下半年，我們將會看到一些非常穩健的表現，但這種表現實際上只是在為 26 年及以後積聚勢頭。

Okay. That's very helpful color on it. And then maybe turning to the margins, the consolidated margin. Can you talk a bit about the cost saving efforts that you are pursuing, where we are in that process, how we should think about those benefits coming through? And then any color on the path for profitability in the back half of this year?

好的。這是非常有用的顏色。然後也許轉向利潤率、合併利潤率。您能否談談您正在推行的成本節約措施、我們目前所處的過程以及我們應該如何看待這些好處？那麼今年下半年獲利前景如何？

Yeah. So why don't I start with some high-level thoughts, I'm going to hand it over to John to take us through some of the detail. But a couple of things. One thing is this management team feels that it's very much a duty to manage the P&L with discipline in a category that at times can have headwinds.

是的。那麼，我先從一些高層次的想法開始吧，我將把它交給約翰來帶我們了解一些細節。但有幾件事。一件事是，這個管理團隊認為，在有時會遇到阻力的類別中，嚴格管理損益是一項很大的責任。

And certainly, in the last couple of years, there's been more headwinds than we've expected, and I think we're proud of the way in which we've managed the P&L tightly, not just to deliver for shareholders from a margin perspective, but also to create the field to reinvest in the business.

當然，在過去幾年中，我們遇到的阻力比我們預期的要大，我認為我們對嚴格管理損益的方式感到自豪，這不僅是為了從利潤率的角度為股東帶來收益，也是為了創造對業務進行再投資的領域。

And we've continued to make those investments in brand and innovation and digital. And so that's very much the philosophy of the team, including our presidents and general managers that's sort of part of the DNA.

我們將繼續在品牌、創新和數位化方面進行投資。這就是我們團隊的理念，包括我們的總裁和總經理的理念，這也是 DNA 的一部分。

I think as we got into this year, this one headquarters move, which we're more than halfway through now actually ended up giving us flexibility as we were moving people and at the same time, rehiring people to control the pace of that and really think deeply about exactly what capabilities we needed and when. And that's given us flexibility as we built the cost base for this year and hopefully will allow us to leverage that as we get into next. So I don't know if you want to add some color to that?

我認為，隨著我們進入今年，這次總部搬遷（目前已進行過半）實際上為我們提供了靈活性，因為我們可以調動人員，同時重新僱用人員來控制進度，並真正深入思考我們究竟需要什麼能力以及何時需要。這為我們在今年建立成本基礎時提供了靈活性，並希望讓我們在進入下一年時能夠利用這一點。所以我不知道您是否想添加一些顏色？

Yes, sure. And just looking at the cost structure going into the back part of the year, we touched on in the opening remarks that moving into the new headquarters here in the fall. We've got move-in dates starting out in September. And as we do that, we're -- there's going to be some efficiencies that we're going to gain from just consolidating some of the operations there from a corporate basis. And then if you look at some of the business units in the segments, for example, both outdoors and securities are going to see higher margins as we go into the back part of the year, different factors driving each of them.

是的，當然。只看今年下半年的成本結構，我們在開場白中提到了秋季搬進新總部。我們的入住日期從九月開始。當我們這樣做時，我們將從公司層級整合部分業務，以獲得一些效率。如果你看一下各部門中的某些業務部門，例如，隨著我們進入今年下半年，戶外和證券業務的利潤率都將上升，而推動這兩個部門發展的因素各不相同。

Within outdoors, one of the dynamics that impacted the first half this year was frankly just some higher costs that were in the back part of last year that for inventory. We under absorbed last year in the back part of the year, which led to higher cost of goods for this particularly in the decking segment there.

在戶外領域，影響今年上半年的因素之一坦白說就是去年下半年庫存成本的增加。去年下半年我們的吸收能力不足，導致商品成本上升，特別是那裡的裝飾部分。

We're going to see that roll off going into the second half of the year, which should lead to some better market performance there. On Security, we talked about some of the investments we've been making in the marketing and the branding there. Those are investments that we made largely in Q2.

我們將看到這種下滑趨勢在下半年出現，這將帶來更好的市場表現。在安全方面，我們談到了我們在行銷和品牌方面所做的一些投資。這些是我們在第二季主要進行的投資。

We're going to continue to invest to drive that growth. But if you look at some of the margin that we're expecting to get back and going into the back part of the year, we're expecting to get some of the benefits of that incremental spend this quarter, seeing that into really translate next half.

我們將繼續投資以推動這一成長。但是，如果您看一下我們預計在今年下半年恢復的部分利潤率，我們預計將從本季度的增量支出中獲得一些收益，並將其真正轉化為下半年的收益。

Okay. That's helpful color. Thank you both and good luck with the quarter.

好的。這是很有幫助的顏色。謝謝你們，祝本季好運。

Thank you.

謝謝。

John Lovallo, UBS.

瑞銀的約翰·洛瓦洛。

Hi guys, thank you for taking my questions as well. The first one is just on the water segment, the 25.6% margin. I think is among the highest probably that you guys have achieved. And I know you talked about productivity, manufacturing efficiencies, SG&A things of that nature.

大家好，也感謝你們回答我的問題。第一個是關於水務領域的，利潤率為 25.6%。我認為這可能是你們取得的最高成就之一。我知道您談到了生產力、製造效率、銷售、一般及行政費用等性質的問題。

Just curious if there was anything kind of onetime in nature in that number, anything related to the prebuy or things like that? And also what level of pricing have you guys realized here ahead of the tariffs?

只是好奇這個數字中是否有某種一次性的東西，是否與預購或類似的東西有關？另外，在關稅實施之前，你們的定價水準是怎麼樣的？

Yeah, I can start, John. No, it's a great question. We're really proud of the 25.5% -- 25.6% that we achieved this quarter. There weren't any one timers that were flowing through there. It was all those things that you mentioned and that we prepared -- that we mentioned in the prepared remarks, all of those are a factor.

是的，我可以開始了，約翰。不，這是一個很好的問題。我們對本季取得的 25.5% - 25.6% 的成績感到非常自豪。那裡沒有任何一次性流過。您提到的以及我們準備的所有這些事情——我們在準備好的演講中提到的，所有這些都是一個因素。

I would say the -- from a kind of breakdown within there. The House of Rolls segment was a nice example of an area that we've touched on in the luxury segment where the consumer really has been more resilient, and we've been able to see some price increases, volume increases there within that segment, which has really helped to drive some of that increase.

我想說的是——這是由於內部的某種崩潰造成的。勞斯萊斯汽車部門是我們在奢侈品領域觸及的一個很好的例子，該領域的消費者確實更具彈性，並且我們已經能夠看到該領域內的價格上漲和銷量增加，這確實有助於推動部分增長。

The other piece that I would point to, just broadly speaking, we're going to be taking some promote. We're going to be factoring in some other promotional events and other things to drive further sales going into the back part of the year, which we've guided to 23% to 24% on a full year basis. So not a large decremental margin, but that is going to normalize as we get into the back part of the year with that and some of the new business that we've won.

我想指出的另一點是，從廣義上講，我們將採取一些推廣措施。我們將考慮一些其他促銷活動和其他因素，以推動下半年的進一步銷售，我們預計全年銷售額將成長 23% 至 24%。因此，利潤率的下降幅度不會很大，但隨著我們進入下半年，隨著我們贏得一些新業務，利潤率將會正常化。

And I'd just add on your question on pricing, I mean, we really try to be disciplined across the businesses and take pricing in a regular way and in an incremental way where we don't have to do large catch-up prices, et cetera.

我想補充你關於定價的問題，我的意思是，我們確實試圖在各個業務中保持紀律，以常規和漸進的方式定價，這樣我們就不必進行大規模的追趕價格等等。

And you saw us do that during the supply chain shocks post COVID here, we've really done our best to sort of keep it in the mid-single-digit range on average. As Jon mentioned, our target margin for the year 23%, 24%. So we're not going to try to overshoot the market. We're going to trying to stay really competitive for our customers and our consumers.

您看到我們在新冠疫情後的供應鏈衝擊期間做到了這一點，我們確實盡了最大努力將其平均保持在中等個位數範圍內。正如喬恩所提到的，我們今年的目標利潤率是 23% 至 24%。所以我們不會試圖超越市場。我們將努力為我們的客戶和消費者保持真正的競爭力。

And to the extent there is a court like this that allows us to continue to do so also while we invest to continue to drive the brand and innovation across this portfolio.

如果有這樣的法院，我們就可以繼續這樣做，同時我們也可以繼續投資推動整個投資組合的品牌和創新。

Okay. That's helpful. And then on the updated tariff numbers, the $80 million in 2025 and the $260 million in 2026 unmitigated. Maybe just help us understand the plan to offset maybe the mix between pricing cost savings, supply chain initiatives in each year would be helpful. Thank you.

好的。這很有幫助。然後根據更新後的關稅數字，2025 年的關稅為 8,000 萬美元，2026 年的關稅為 2.6 億美元，未減免。也許只是幫助我們理解抵銷計劃，也許每年的定價成本節約、供應鏈計劃之間的組合會有所幫助。謝謝。

Yeah, I'll start and Jon add some color about what I'd say is, obviously, for competitive reasons, we don't break that down. But we are working the supply chain piece the hardest, right? Our goal is to get supply chain savings where we can reorient the supply chain where we can do all the work and the work that the team has done, there's really been second to none and the speed at which they've gone off to this. And you can see it, right, in the offsets. Really, again, leveraging the digital investments that we've made in our own systems, the ability to draw that data, analyze that data and act on that data has been second to none.

是的，我先開始，喬恩補充我想說的，顯然，出於競爭的原因，我們不會把它分解開來。但我們在供應鏈部分的工作最努力，對嗎？我們的目標是節省供應鏈成本，這樣我們就可以重新調整供應鏈，完成所有的工作，而團隊所做的工作確實是首屈一指的，而且他們完成這項工作的速度也很快。您可以在偏移量中看到它。確實，再次利用我們在自己的系統中進行的數位投資，提取數據、分析數據並根據數據採取行動的能力是首屈一指的。

And so we've been able to make a lot of progress there. And then we can't cover, we look to price to cover. But we will keep going back to the cost and supply chain opportunities and keep working them over. And to the extent that then starts to overdeliver that's going to give us more flex on the price piece, either to put that price back to work in promo or reinvest it for branded growth.

因此我們在那裡取得了很大進展。然後我們就無法彌補，我們只能靠價格來彌補。但我們將繼續專注於成本和供應鏈機會並繼續努力。如果超出預期，我們將在價格方面擁有更大的靈活性，要么將該價格重新用於促銷，要么將其重新投資於品牌成長。

Sure. And just to add maybe a little bit of color in terms of where those tariffs are coming from. We mentioned in the prepared remarks that our exposure to China as part of our COGS is roughly 10%. Now to put that into perspective of the $260 million annualized number, about half of that impact is China. And so to the effect that we are able to manage that supply chain to mitigate that risk and looking through optimization there, that's a big part of those mitigation efforts.

當然。只是想稍微解釋一下這些關稅的來源。我們在準備好的發言中提到，我們對中國的曝險占我們的銷貨成本的比重約為 10%。現在，從每年 2.6 億美元的角度來看，其中約一半的影響來自中國。因此，我們能夠管理供應鏈以減輕風險，並透過最佳化來降低風險，這是緩解措施的重要組成部分。

Great. Thanks very much.

偉大的。非常感謝。

McLaren Hayes, Zelman & Associates.

麥克拉倫海斯、澤爾曼和合夥人。

Hey, how's it going guys? I was just wondering first on the tariffs, has that lower annualized number impacted the way that you guys are thinking about going after some of those cost-out actions and balancing that with the investments you're making?

嘿，大家好嗎？我首先想問的是，關於關稅，較低的年化數字是否影響了你們考慮採取一些成本削減行動以及與正在進行的投資進行平衡的方式？

Yes. I mean every day, every day, we're rerunning the model. It seems like -- so absolutely. Look, it changes the mix of what you're doing. But what it doesn't change is the principle of what we're doing.

是的。我的意思是，我們每天都在重新運行這個模型。看起來——絕對是如此。你看，它改變了你所做的事情的組合。但它不會改變我們所做事情的原則。

What we're doing is aiming to build a regionalized supply chain redundancy that doesn't make us dependent on any one geography or any one single point of failure. And so that philosophy stays the same, and we are going to continue to invest to make that happen. Fortunately, we're starting from a phenomenal place, which is one of the strongest, if not the strongest US North American manufacturing base any of our competitors.

我們所做的旨在建立一個區域化的供應鏈冗餘，這樣我們就不會依賴任何一個地理位置或任何一個單點故障。因此，這一理念保持不變，我們將繼續投資以實現這一目標。幸運的是，我們的起點非常出色，它是我們所有競爭對手中最強大的美國北美製造基地之一，甚至是最強大的。

And so what we've seen is a lot of customers come to us and say, how can we leverage what you guys have in the US How can we leverage what you guys have inside a USA to really drive it further. And so a lot of the work we're doing is about what product sets we bring inside of that regional fence, if you will, and how over time we can use that to drive the business further. And so I think there's what we've done today, which I'd say is fairly tactical. We've done it very quickly.

因此，我們看到很多客戶來找我們，問我們如何利用你們在美國擁有的資源，我們如何利用你們在美國境內擁有的資源來真正推動它進一步發展。因此，我們所做的工作很多都是關於在區域範圍內推出哪些產品，以及隨著時間的推移我們如何利用這些產品來進一步推動業務發展。所以我認為我們今天所做的一切都是相當有策略的。我們很快就完成了。

But the future -- we won't -- even if we cover off on all the tariffs, we want to stop here. The future is the strategic element, which is how we keep driving CI out of the supply chain and build the most resilient and lowest cost supply chain that we possibly can and then use those funds to reinvest to make our products competitive and to build our brands and drive our innovation.

但未來——我們不會——即使我們涵蓋所有關稅，我們也想就此止步。未來是策略要素，即我們如何持續將 CI 從供應鏈中剔除，並儘可能建立最具彈性和成本最低的供應鏈，然後利用這些資金進行再投資，使我們的產品具有競爭力，打造我們的品牌並推動我們的創新。

Awesome. And just on China within Water, I guess, any update on what you guys are seeing on the ground there and kind of how the outlook is shaping up for the back half?

驚人的。關於中國水資源問題，我想，您能介紹一下當地的最新情況嗎？下半年的前景如何？

Yes. Looking at China, I mean, if we look at all of last year, it was interesting, right, because the comps were up and down '24 versus '23, but the net sales line was very, very steady. I mean every quarter, almost exactly the same, and we saw it very say. We definitely saw it take a step down in Q1 of this year, and I think directly attributable to a lot of the uncertainty driven by these tariff wars. And that is impacting the consumer over there who's been much more cautious.

是的。看看中國，我的意思是，如果我們回顧去年全年的情況，就會發現這很有趣，因為 2024 年與 2023 年相比，銷售額有漲有跌，但淨銷售額卻非常非常穩定。我的意思是每個季度幾乎都完全一樣，而且我們看到了非常多的情況。我們確實看到它在今年第一季有所下降，我認為這直接歸因於這些關稅戰帶來的許多不確定性。這對那裡更加謹慎的消費者產生了影響。

So we're working that with the China team. And that really is around the developer business. If we look at things like our showroom channel and what we call a designer channel, those are showing growth. And so what we're going to do is really work with the team over there to understand how much of that development business we expect -- where do we expect it to land? And how do we expect it to then grow from there?

因此我們正在與中國團隊合作。這確實與開發商業務有關。如果我們看一下我們的展示廳管道和所謂的設計師管道，我們會發現它們正在成長。因此，我們要做的就是與那裡的團隊密切合作，了解我們預期的開發業務量——我們預期它會在哪裡落地？那麼我們期望它如何從那裡發展呢？

And what's the point at which this becomes a growth vehicle for our organization.

這在什麼時候會成為我們組織的成長工具？

I'll just add, at this point, the team there has done such a great job managing the cost basis as the top line has declined that we do not have much exposure from an EPS perspective. So it's not like there's a lot of EPS risk for us in China, they've managed it really, really well. And it does give us exposure to a lot of interesting products and innovation, and we like that window that, that business gives us. So optionality for growth. and access to innovation.

我只想補充一點，目前，那裡的團隊在管理成本基礎方面做得非常出色，因為營業額已經下降，從每股盈餘的角度來看，我們沒有太多的風險敞口。因此，我們在中國面臨的每股盈餘風險並不大，他們對此管理得非常非常好。它確實讓我們接觸到了很多有趣的產品和創新，我們喜歡這個業務提供給我們的窗口。因此，成長具有選擇性，並且可以獲得創新。

And so the objective there is really to keep building these other channels that are growing while we start to find the bottom of the developer channel and then grow from there and really turn what's been a headwind into a tailwind for the business.

因此，我們的目標實際上是繼續建立這些正在成長的其他管道，同時我們開始找到開發者管道的底部，然後從那裡開始發展，真正將逆風轉變為業務的順風。

Stephen Kim, Evercore ISI.

史蒂芬金 (Stephen Kim)，Evercore ISI。

This is Atish on for Steve. Just going back to the topic of tariffs, and thanks for all the detail there. On the last call, it was mentioned that the incremental tariff impact would be offset by the mitigation actions, including mid-single-digit pricing across the business on average. Is that pricing expectation changed given the updated tariff expectations?

這是史蒂夫的阿蒂什。回到關稅話題，感謝您提供的所有詳細資訊。在上次電話會議上，會議提到增量關稅的影響將被緩解措施所抵消，包括整個企業平均的中位數個位數定價。鑑於更新後的關稅預期，定價預期是否會改變？

Well, the tariffs have shifted around a lot. But I would say the pricing across the portfolio on an average, we've been able to maintain around that mid-single-digit mark. And then to the extent that we're able to further mitigate the tariff impact will certainly look to that and work hard to be as competitive as we can in the marketplace.

嗯，關稅已經發生很大變化。但我想說的是，我們能夠將整個投資組合的平均定價維持在中等個位數左右。然後，在我們能夠進一步減輕關稅影響的範圍內，我們一定會關注這一點，並努力在市場上保持盡可能大的競爭力。

And the only thing I'd add is that is that's not a peanut butter spread across the portfolio across different channels, we're being very surgical around how we implement those tariffs, price actions and how we can best realize some recovery there.

我唯一想補充的是，這不是透過不同管道在投資組合中推廣的花生醬，我們正在非常精確地實施這些關稅、價格行動以及如何最好地實現復甦。

It's Steve. Just to follow up on that. Why is the pricing action is going to remain the same, but the tariff gross headwind is less why wouldn't you be able to -- why wouldn't you be effectively over mitigating under that circumstance? I'm just trying to make sure I'm understanding conceptually what the change is.

我是史蒂夫。只是為了跟進這一點。為什麼定價行動將保持不變，但關稅總阻力較小，為什麼你不能 - 為什麼你不能在這種情況下有效地緩解？我只是想確保我從概念上理解了這種變化是什麼。

Yes. Well, again, we run this model on this daily, right? And so I would say it's very early stages to say, hey, it's set, and we know that we don't have enough rip to much we could start to move things around. But that is certainly the objective. But I said all of our pricing is in at this point.

是的。好吧，我們每天都會運行這個模型，對嗎？所以我想說現在還處於非常早期的階段，嘿，它已經設定好了，我們知道我們沒有足夠的 rip 來開始移動東西。但這確實是我們的目標。但我說過，目前我們所有的定價都已經確定了。

By and large, I'm sure there's probably a couple of accounts out there that are still being discussed. But I think, by and large, all the pricing is in and as we work those mitigations, if there's opportunity, we'll leverage that opportunity. And I think that's the way to think about it. And then as John just said it's not a peanut butter spread either. I mean there are places where we had to take more and we'll see where those mitigations come out.

總的來說，我確信可能還有幾個帳戶仍在討論中。但我認為，總的來說，所有的定價都已到位，當我們採取這些緩解措施時，如果有機會，我們就會利用這個機會。我認為這就是思考這個問題的方式。正如約翰剛才所說，這也不是花生醬。我的意思是，有些地方我們必須採取更多措施，然後看看這些緩解措施的效果如何。

There are other places, I mean, look at the outdoors business, US manufacturing fully vertically integrated. And we had a lot of competition in the last couple of years, frankly, some of it dumping in the market. And now that business will be hugely advantaged by the geopolitical and tariff opportunity. And so thinking through there, well, how do you manage that?

還有其他地方，我的意思是，看看戶外業務，美國製造業完全垂直整合。坦白說，過去幾年我們面臨的競爭非常激烈，有些競爭對手甚至在市場上傾銷產品。現在，地緣政治和關稅機會將為該業務帶來巨大優勢。所以仔細想想，那麼，你該如何做到這一點呢？

And we have the largest facility, how we're going to handle the volume that might come our way and how do we balance that with pricing. And so there's a different way of thinking about a similar issue that's impacted by the tariff, I think in a very different way.

我們擁有最大的設施，我們將如何處理可能出現的數量以及如何平衡價格。因此，對於受關稅影響的類似問題，人們有不同的看法，我認為，這是一種非常不同的方式。

Yes. And Stephen, the only thing I'd add is when you're looking at the math just from last quarter to this quarter, the one thing to also keep in mind is when the tariff rates come down and a lot of them have come down since the last quarterly call, some have gone up, but several have come down and meaningfully down.

是的。史蒂芬，我唯一要補充的是，當你查看從上個季度到本季度的數學計算結果時，還要記住的一件事是，當關稅稅率下降時，自上次季度電話會議以來，很多關稅稅率都下降了，有些關稅稅率上升了，但也有幾個關稅稅率下降了，而且下降幅度很大。

The mitigation actions from the supply chain effects that we've put into place, that also comes down because we measure those last call off of the baseline higher tariff rates for certain countries than they are today. So summer to next point, we're running these models every day. So it's -- they all -- there's a lot of factors that go into it.

我們所採取的緩解供應鏈效應的措施也下降了，因為我們衡量了某些國家最後取消的比現在更高的關稅稅率。從夏天到下個季節，我們每天都在運行這些模型。所以 — — 它們全都 — — 有很多因素會影響到它。

Got it. Okay, thanks so much.

知道了。好的，非常感謝。

Mike Dahl, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Mike Dahl。

Just a follow up with a couple more on tariffs, sorry to beat the horse here. On the ex-China piece, can you give us an update on some of these tariff rates have been moving around kind of what your what your largest country exposures are? And then I didn't hear you mention copper as being contemplated.

我只是想跟進一下有關關稅的問題，抱歉打擾了。關於中國以外的部分，您能否向我們介紹一下這些關稅稅率的最新情況，以及您對哪些國家的風險敞口最大？然後我沒有聽到你提到考慮使用銅。

There's obviously some moving pieces and puts and takes with copper, but if you've done any quick work to give us a sense of how that would impact I know probably not this year, but as you think about kind of an annual impact, maybe looking to next year?

顯然，銅的價格存在一些變動，但如果您能快速地讓我們了解這些變動將如何影響，我知道這可能不是今年，但當您考慮年度影響時，也許可以展望明年？

I'll just start with the copper and then I'll hand it over to John. And I'd say at this point, what we understand to be contemplated by copper does not have a material impact. Now we'll see the HTS codes when they come out. But that's not our understanding of where it's come out this far. And so we don't see that as a huge impact.

我先從銅開始，然後將其交給約翰。我想說的是，就目前而言，我們所理解的銅的預期不會產生實質的影響。現在我們將看到 HTS 程式碼的發布。但我們對目前結果的理解並非如此。因此我們認為這不會造成巨大影響。

Now that's let's give it a few more days or weaker whatever it is before we see that, but we didn't see anything particularly alarming in the copper piece.

現在讓我們再等幾天或等到它變得更弱一些我們才能看到這一點，但我們並沒有在銅價上看到任何特別令人擔憂的東西。

Yes. And as it relates to the rest of the world piece, just to give you some more color there. I mean it's a longer tail. So China is the most meaningful and at about half. And then beyond that, it's really a lot of different countries.

是的。由於它與世界其他地方相關，因此只是為了給您更多色彩。我的意思是它的尾巴更長。所以中國是最有意義的，約佔一半。除此之外，還真的有很多不同的國家。

But if you were to take number two, it's probably Mexico, non-US MCA Mexico. But again, it's not nearly as material. It is a long tail.

但如果要選出第二個，很可能是墨西哥，非美國的 MCA 墨西哥。但同樣，它並不是那麼重要。它的尾巴很長。

Okay. And would the largest be on Mexico, the other Southeast Asia countries. I guess that's just clarifying. And the second question again, given some of these moving pieces, if there's any help you can provide in terms of you often give some quarterly directional cadence around how to be thinking about margins and sales by business. I think that would help just given such a dynamic environment.

好的。其中最大的是墨西哥和其他東南亞國家。我想這只是澄清一下。第二個問題再次出現，考慮到這些變化的因素，您是否可以提供任何幫助，例如您是否經常提供一些季度指導節奏，說明如何考慮業務的利潤率和銷售。我認為在如此動態的環境下這會有所幫助。

Well, I'll just say on other countries well, and John can answer the other piece. But I just recall -- and I say we come -- like a lot of people in our sector are importing finished goods from Southeast Asian countries, and we certainly have some Southeast Asian countries in the mix. But for the most part, we're a US manufacturer and US assembler.

好吧，我只想說關於其他國家，約翰可以回答另一個問題。但我只是記得——我說我們來——就像我們行業中的許多人正在從東南亞國家進口成品，而且我們的產品中肯定也有一些東南亞國家。但在大多數情況下，我們是美國製造商和美國組裝商。

And so most of our tariff exposure is coming from that sort of remaining piece of the supply chain that today we've only made in China, that's sort of like getting down to the 10%, but we then bring over here and assemble in the US. And so that is the vast majority of the exposure. And what we'll do is work over time to create other sources for that component and then continue to leverage what is ultimately, US manufacturing. That's our goal.

因此，我們的大部分關稅風險都來自於供應鏈的剩餘部分，今天我們只在中國生產，這有點像降到 10%，但我們隨後將其運送到這裡並在美國組裝。這就是絕大多數的曝光。我們要做的是隨著時間的推移為該組件創造其他來源，然後繼續利用最終的美國製造業。這就是我們的目標。

And if you're looking for some of the back half some guidance, so if you look at our earnings release, we did reintroduce the table there that does have segment breakdowns for the full year that can give you some information around what we're expecting for the back half of the year.

如果您正在尋找下半年的一些指導，那麼如果您查看我們的收益報告，我們確實重新引入了表格，其中確實有全年的細分市場，可以為您提供一些有關我們對下半年的預期的信息。

So if you look at water, for example, just starting there, for the full year, we're looking at negative 3% to negative 1% on net sales and operating margins for the year at 23% to 24%. Outdoors where net sales basis flat to 2% with an operating margin of 14% to 15%. And security net sales negative 1% to 2% and margins at 16.5% to 17.5%.

以水為例，從全年來看，我們預期淨銷售額將下降 3% 至 1%，全年營業利潤率將下降 23% 至 24%。戶外業務的淨銷售額基數持平至 2%，營業利益率為 14% 至 15%。安全淨銷售額下降 1% 至 2%，利潤率為 16.5% 至 17.5%。

Okay, all right, Thank you.

好的，好的，謝謝。

This concludes our question-and-answer session. Thank you for joining today's conference call. You may now disconnect.

我們的問答環節到此結束。感謝您參加今天的電話會議。您現在可以斷開連線。