GigaCloud Technology Inc (GCT) 2025 Q2 法說會逐字稿

Welcome to GigaCloud Technology's Second Quarter 2025 Earnings Conference Call. Joining us today from GigaCloud are the company's Founder, Chief Executive Officer and Chairman, Larry Wu; its President, Iman Schrock; and its Chief Financial Officer, Erica Wei. Larry will begin with some opening remarks, Iman will discuss the company's operational progress and Erica will review financial results. After that, we will open the call for questions.

歡迎參加 GigaCloud Technology 2025 年第二季財報電話會議。今天，GigaCloud 的嘉賓包括公司創始人、執行長兼董事長 Larry Wu、總裁 Iman Schrock 以及財務長 Erica Wei。 Larry 將致開幕詞，Iman 將介紹公司的營運進展，Erica 將回顧財務表現。之後，我們將開始提問環節。

As a reminder, this conference call contains statements about future events and expectations that are forward-looking in nature, and actual results may differ materially. Additionally, today, the call will include the discussion of non-GAAP measures within the meaning of SEC Regulation G. When required, a reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in the press release issued today by GigaCloud as well as on the company's website.

提醒一下，本次電話會議包含前瞻性陳述，涉及未來事件和預期，實際結果可能會有重大差異。此外，今天的電話會議將討論美國證券交易委員會 (SEC) G 條例所定義的非公認會計準則 (non-GAAP) 指標。如有需要，所有非公認會計準則 (non-GAAP) 財務指標與按照公認會計準則 (GAAP) 計算和呈現的最直接可比較財務指標的對帳表可在 GigaCloud 今天發布的新聞稿以及公司網站上找到。

I would now like to turn the call over to Larry. Please go ahead, sir

現在我想把電話轉給拉里。先生，請講。

Thank you, operator, and welcome, everyone, to our call today. Let me start by saying what -- the eventful quarter we had between supply chain disruption from tariff hikes, a challenging industry backdrop and the continued execution of our SKU rationalization initiatives. We have a few curveballs. Yet despite it all, we delivered strong results. Revenue increased by 4% year-over-year, exceeding our own expectations. And more importantly, we drove a greater share of that growth into bottom line performance, which grew 28% year-over-year.

謝謝接線員，歡迎大家參加今天的電話會議。首先，我想說一下——這個季度我們經歷了多事之秋，關稅上調導致供應鏈中斷，產業環境充滿挑戰，我們持續執行SKU合理化計畫。我們遇到了一些波折。然而，儘管如此，我們仍然取得了強勁的業績。營收年增4%，超出了我們自身的預期。更重要的是，我們將更大比例的成長轉化為了獲利，獲利年增了28%。

A few highlights on the key events of this quarter before we dive into details. We started this quarter facing heightened tariff on our key sourcing countries including Vietnam, China and Malaysia. With the rapid changes that followed by -- was followed shortly after the initial announcement. The unprecedented level of uncertainty quickly led to disruptions in the overall ecosystem. A number of our 3P partners holded shipping for several weeks, adopting the wait-and-see approach, and we had to act quickly to ensure our own competitive sourcing. Despite this challenge, we saw marketplace GMV grew by 31% on a trailing 12-month basis.

在深入探討細節之前，讓我們先回顧一下本季發生的一些重要事件。本季開始，我們面臨越南、中國和馬來西亞等主要採購國關稅上調的局面。隨著關稅公告發布後不久，情況迅速改變。前所未有的不確定性迅速導致整個生態系統中斷。我們的一些第三方合作夥伴暫停出貨數週，採取觀望態度，我們必須迅速採取行動，以確保我們自身的採購競爭力。儘管面臨挑戰，我們平台的商品交易總額 (GMV) 在過去 12 個月內成長了 31%。

Rather than a setback, I see this event as a proving ground for the marketplace and the Supplier Fulfilled Retailing or SFR model one designed to bring agility and the efficiency to global trade. As I said, last quarter, but bears repeating, our marketplace powered by SFR model, is an adaptive channel-agnostic ecosystem purpose built to allow participants to pivot quickly by creating new path forward when old ones become hindered. In today's environment, where efficiency and flexibility aren't just advantages, but necessities, our value proposition is critical.

我認為這次活動並非挫折，而是對市場和供應商自配送零售（SFR）模式的試驗，該模式旨在為全球貿易帶來敏捷性和效率。正如我上個季度所說，但值得重申的是，我們由SFR模式驅動的市場是一個自適應的、與通路無關的生態系統，旨在讓參與者在舊路徑受阻時能夠快速轉向，開闢新的前進路徑。在當今環境下，效率和靈活性不僅是優勢，更是必需品，因此我們的價值主張至關重要。

Momentum in Europe continued to build with the GMV up 59% year-over-year. To support that demand, we recently opened an additional fulfillment center in Germany, which is quickly becoming a key part of our global network. We're also seeing growing interest from our 3P suppliers looking to diversify beyond the U.S. market, especially in light of recent trade tariff, a clear sign that Europe is shaping up to become more than just a growth market for us.

歐洲市場持續成長，交易總額 (GMV) 年增 59%。為了滿足這一需求，我們最近在德國開設了新的配送中心，該中心正迅速成為我們全球網路的重要組成部分。我們也看到，我們的第三方供應商越來越有興趣在美國市場之外拓展業務，尤其是在近期貿易關稅的影響下，這清楚地表明，歐洲正逐漸成為我們不僅僅是一個成長型市場。

Looking internally, our SKU rationalization effort for the Noble House portfolio are advancing as we continue to purposely streamline our product portfolio by phasing out low-margin SKUs by replacing them with high-performing profit driving product offering. Iman will share more details on this shortly. As we have communicated before, we have been and always will be focused on -- now I will turn the call over to Iman to provide an update on our key operational goals.

從內部來看，我們針對 Noble House 產品組合的 SKU 合理化工作正在推進，我們將繼續有意識地精簡產品組合，逐步淘汰低利潤的 SKU，代之以高績效、高利潤的產品。 Iman 稍後將分享更多細節。正如我們之前溝通過的，我們一直以來並將始終專注於…現在，我將把電話會議交給 Iman，請他介紹我們的關鍵營運目標的最新情況。

Thank you, Larry. Despite continued market uncertainty, our marketplace once again delivered impressive results. For the trailing 12 months ending June 30, 2025, GMV increased over 31%, surpassing $1.4 billion. As both sellers and buyers of large parcel goods capitalized on the advantages of our flexible SFR model.

謝謝，拉里。儘管市場持續存在不確定性，但我們的平台再次取得了令人矚目的成就。截至2025年6月30日的過去12個月，GMV成長超過31%，超過14億美元。大宗包裹商品的賣家和買家都充分利用了我們靈活的SFR模式的優勢。

Our active 3P seller base continues to expand, standing at 1,162, up about 25% from last year. GMV from this group rose roughly 32% year-over-year on a trailing 12-month basis to $758 million. Our active buyer base maintained strong momentum surpassing 10,000 for the first time to almost 11,000, an increase of approximately 51% year-over-year.

我們的活躍第三方賣家群體持續擴大，目前已達1,162名，較去年成長約25%。該族群的商品交易總額（GMV）在過去12個月年增約32%，達7.58億美元。我們的活躍買家群體保持強勁勢頭，首次突破1萬，達到近1.1萬，較去年同期成長約51%。

As we continue to welcome a growing number of new buyers to our platform, we see a slight dip in average spend since newcomers typically start small before scaling up their activity over time.

隨著我們繼續歡迎越來越多的新買家加入我們的平台，我們發現平均支出略有下降，因為新來者通常從小處開始，然後隨著時間的推移擴大他們的活動。

Europe continues to be one of our strongest growth areas. GMV in the region grew 59% year-over-year in the second quarter. While our 1P sales there remain robust, we are particularly excited about a notable and recent surge in interest from the 3P seller partners to enter this market. Historically, 3P activity has been largely focused on the US domestic market.

歐洲仍然是我們成長最強勁的地區之一。該地區第二季的商品交易總額 (GMV) 年成長 59%。雖然我們在那裡的單方銷售依然強勁，但我們尤其高興地看到，近期第三方賣家合作夥伴對進入該市場的興趣顯著增長。從歷史上看，第三方賣家的活動主要集中在美國國內市場。

But just in the past couple of months, we have seen a meaningful shift with 3P sellers now actively seeking expansion into Europe and other international markets as means to diversify their channels and better navigate evolving trade dynamics.

但就在過去的幾個月裡，我們看到了一個有意義的轉變，第三方賣家現在積極尋求向歐洲和其他國際市場擴張，以此來實現管道多樣化，更好地應對不斷變化的貿易動態。

Our platform and infrastructure empower our partner to scale quickly and efficiently without the burden of heavy capital commitments while remaining agile in a rapidly evolving environment. We are honored to be the partner they trust to facilitate this expansion and proud to play a role in their growth journey.

我們的平台和基礎設施助力合作夥伴快速且有效率地擴展業務，無需承擔沉重的資本投入，同時在快速發展的環境中保持敏捷。我們很榮幸成為他們信賴的合作夥伴，協助其擴張，並自豪地在他們的成長歷程中貢獻力量。

This expansion of 3P into Europe is yet another example of GigaCloud's proven playbook, we go first. We enter new markets first through 1P, validate scalability, profitability and only then do we bring in 3P partners.

第三方合作夥伴進軍歐洲，再次印證了 GigaCloud 行之有效的策略—我們先行。我們首先透過第三方合作夥伴進入新市場，驗證其可擴展性和獲利能力，然後才會引入第三方合作夥伴。

By taking the lead, we ensure our partners step into a proven framework for success without the time investment risk or the risk associated with trial and error. Europe is emerging not only as a growth region, but as a strategic pillar of our global expansion.

透過引領，我們確保合作夥伴能夠邁入一個行之有效的成功框架，而無需承擔時間投入風險或反覆試驗的風險。歐洲不僅正在崛起成為一個成長區域，更將成為我們全球擴張的戰略支柱。

To support these demands, in July, we opened an additional fulfillment center in Germany, our sixth in the country, bringing our global footprint to approximately 11.2 million square feet. Germany is now a vital hub for fulfillment across Europe. With more sellers looking to expand beyond the US, we are scaling thoughtfully. Over time, we see Europe as having the potential of becoming a business of comparable scale and significance to our domestic US operations in the years ahead.

為了滿足這些需求，我們在7月在德國開設了新的配送中心，這是我們在德國的第六家配送中心，使我們的全球業務覆蓋面積達到約1120萬平方英尺。德國如今已成為歐洲重要的配送樞紐。隨著越來越多的賣家尋求在美國以外擴張業務，我們正在審慎地擴張。隨著時間的推移，我們認為歐洲有潛力在未來幾年發展成為與我們美國本土業務規模和重要性相當的業務。

Turning our attention to recent SKU rationalization efforts, as we shared in our previous earnings, the legacy Noble House operations have now been fully integrated into GigaCloud with everyone working as one team. Once operational processes have been successfully streamlined, we turned our attention to the product portfolio.

我們將注意力轉向最近的SKU合理化工作，正如我們在先前的財報中所述，Noble House的舊業務現在已完全整合到GigaCloud，每個人都作為一個團隊工作。在成功簡化營運流程後，我們將注意力轉向了產品組合。

When we first acquired Noble House out of bankruptcy, we inherited a portfolio of over 8,000 SKUs that have been stalled for more than a year, posing a significant challenge to profitability. Since then, our team has worked diligently to develop new SKUs that align with today's market demands.

當我們最初收購破產的Noble House時，我們接手了超過8,000個SKU的產品組合，這些產品已經停滯了一年多，對獲利能力構成了重大挑戰。從那時起，我們的團隊一直在努力開發符合當前市場需求的新SKU。

I am proud to share that as of today, we have retired 3,800 outdated SKUs, introduced approximately 1,200 new ones and continue to carry around 3,000 original SKUs with plans to expand further throughout the year.

我很自豪地告訴大家，截至今天，我們已經淘汰了 3,800 個過時的 SKU，推出了約 1,200 個新的 SKU，並繼續保留約 3,000 個原有 SKU，併計劃全年進一步擴展。

In addition to new product offerings, we've also gained significant efficiencies by embracing the marketplace with this portfolio and benefiting from the differentiating advantages brought to us by the SFR business model. The strengthened SKU lineup, coupled with lean execution enabled by our marketplace has significantly improved the margin profile of Noble House portfolio, now just 3 points behind legacy GigaCloud.

除了新產品的推出，我們還透過利用該組合擁抱市場，並受益於 SFR 業務模式帶來的差異化優勢，顯著提升了效率。強化的 SKU 陣容，加上我們市場平台帶來的精益執行，顯著改善了 Noble House 產品組合的利潤率，目前僅落後原有的 GigaCloud 3 個百分點。

We remain focused on disciplined execution. And by next summer, we expect portfolio to settle into a more stable rhythm, shifting from a full overhaul to a balanced ongoing cadence of SKU refreshes and retirements as is typical for any healthy product portfolio.

我們始終專注於嚴謹的執行。預計到明年夏天，產品組合將進入更穩定的節奏，從全面革新轉向均衡的SKU更新和淘汰節奏，這是任何健康產品組合的典型特徵。

Now I'd like to turn things over to Erica for a discussion of our second quarter financial results.

現在我想讓 Erica 討論一下我們的第二季財務表現。

Thank you, Iman, and hello, everybody. A quick note before we dive in. All figures I cover today are rounded, and unless otherwise noted, comparisons are against the same period last year. With that, let's take a look at this quarter's results. Total revenues grew 4% to $323 million as a result of increased market recognition and scale of our GigaCloud marketplace. We will now break this down across our product and service revenue streams.

謝謝Iman，大家好。在我們深入探討之前，我想先簡單說明一下。今天我介紹的所有數據都是四捨五入的，除非另有說明，所有比較數據都是與去年同期的。接下來，讓我們來看看本季的業績。由於市場認可度的提升以及GigaCloud市場規模的擴大，總收入成長了4%，達到3.23億美元。現在，我們將按產品和服務收入流來細分。

Starting with products. Total product revenue grew by approximately 5% year-over-year to $226 million, largely outpacing our expectations. Our main growth contributor this quarter was international momentum, once again led by Europe's impressive 59% year- over-year revenue growth. With this performance, Europe now represents roughly 1/4 of our global revenue, underscoring its critical role in our diversified growth strategy. The strong growth seen in Europe was partially offset by 11% decline in U.S. domestic product sales.

首先從產品開始。產品總收入年增約5%，達到2.26億美元，遠超過我們的預期。本季我們的主要成長動力來自國際市場，其中歐洲市場營收年增59%，再次領先。憑藉這一業績，歐洲市場目前約占我們全球收入的四分之一，凸顯了其在我們多元化成長策略中的關鍵作用。歐洲市場的強勁成長被美國國內產品銷售11%的下降部分抵銷。

Of this decline, approximately 5% was attributable to our proactive SKU rationalization efforts and 6% was due to broader industry headwinds felt in the US. Notably, our outperformance was largely due to the legacy Noble House portfolio.

其中約5%的下降歸因於我們主動進行的SKU合理化調整，6%則源自於美國市場普遍存在的產業逆風。值得一提的是，我們優異的表現主要得益於原有的Noble House產品組合。

While we had initially modeled a larger year-over-year decline of revenue as we went through SKU rationalization, performance for this portfolio pleasantly surprised us and contributed a little under 25% to our global product sales.

雖然我們最初預計在進行 SKU 合理化過程中收入同比會下降幅度較大，但該產品組合的表現卻令我們感到驚喜，對我們的全球產品銷售額貢獻略低於 25%。

Product margin improved by 174 basis points sequentially to 29.2%. The main driver of this improvement was our recent efforts for the legacy Noble House portfolio. Over the last 12 months, we have focused on introducing new products and SKUs that better align with customer demand while simultaneously benefiting from the efficiencies brought by the marketplace and our large network of suppliers. These efforts are now paying dividends, and we expect further benefits as we refine execution.

產品利潤率較上季提升174個基點至29.2%。這項提升的主要動力源自於我們近期對原有Noble House產品組合的改進。過去12個月，我們專注於推出更符合客戶需求的新產品和SKU，同時受惠於市場和我們龐大的供應商網路所帶來的效率提升。這些努力目前已初見成效，我們預期隨著執行的完善，未來將會取得進一步的成效。

Moving on to services. Service revenue grew modestly year-over-year at approximately 1%, reaching $97 million for the second quarter of 2025, driven by strong 3P GMV growth. Growth brought by overall volume increase was offset by lower ocean freight revenue as we saw market spot rates decline compared to prior periods, and ocean shipping volume declined due to temporary disruptions in April and May as many of our 3P suppliers halted shipments while waiting for policy clarity.

再來看看服務業務。受第三方物流GMV強勁成長的推動，服務收入較去年小幅成長約1%，2025年第二季達到9,700萬美元。整體貨運量成長帶來的成長被海運收入的下降所抵消，原因是市場現貨運費較前期有所下降，而且由於4月和5月許多第三方供應商在等待政策明朗期間暫停發貨，導致海運量暫時中斷。

Service margin came in at 11.4%, down sequentially by 4.5%, largely reflecting the impact of lowered ocean spot rates and lower warehousing utilization during the quarter due to the temporary April and May supply chain disruptions discussed earlier. After the temporary slowdown in shipping demand driven by tariff-related uncertainty we have since seen volume largely return to their normal levels.

服務利潤率為11.4%，環比下降4.5%，主要反映了本季海運現貨運運費下降和倉儲利用率下降的影響，而此前已討論過4月和5月供應鏈暫時中斷導致這一影響。在關稅相關的不確定性導致航運需求暫時放緩之後，我們已看到運量基本上恢復正常水準。

On a company-wide basis, gross margin was 23.9% for the second quarter a 50 basis point sequential expansion from the first quarter of 2025. Total operating expenses were 13% of total revenue, roughly in line with the first quarter but substantially lower than 16% from prior year quarter. The year-over-year decrease was mainly a result of lower stock-based compensation in the current year.

全公司毛利率第二季為23.9%，較2025年第一季季增50個基點。總營運費用佔總營收的13%，與第一季基本持平，但遠低於去年同期的16%。年比下降主要由於本年度股票薪酬支出減少。

As you may recall, stock-based compensation is provided to most employees once a year and vests upon grant. As such, expense amount directly correlates with share price at the time of grant, which was lower than that of prior year. This year, we also adjusted our annual bonus structure by shifting from 100% stock-based bonus payments to a 50% stock and 50% cash bonus. This change was designed to reduce sell pressure from team members due to taxes while still aligning incentives with company long-term performance.

您可能還記得，大多數員工的股票薪酬每年發放一次，並在授予時歸屬。因此，支出金額與授予時的股價直接相關，而授予時的股價低於去年。今年，我們也調整了年度獎金結構，將100%的股票獎金改為50%的股票獎金和50%的現金獎金。這項變更旨在減輕團隊成員因稅收而產生的拋售壓力，同時確保激勵措施與公司長期業績保持一致。

Net income grew to $35 million for the second quarter with net margin of 10.7%. We ended the second quarter with liquidity of nearly $300 million which includes cash, cash equivalents, restricted cash and short-term investments.

第二季淨利成長至3,500萬美元，淨利率為10.7%。截至第二季末，我們的流動資金接近3億美元，其中包括現金、現金等價物、限制性現金和短期投資。

To date, in 2025, we generated operating cash flows of $48 million, executed $46 million in share buybacks and made net purchases of liquid investments consisting of treasuries and deposits of approximately $20 million. And even with all that capital deployment, our liquidity position has remained largely steady compared to end of last year, which speaks to the strength of our cash generation and disciplined approach.

截至2025年，我們創造了4,800萬美元的營運現金流，執行了4,600萬美元的股票回購，並淨購入了約2,000萬美元的流動性投資，包括國債和存款。即使進行瞭如此大規模的資本部署，我們的流動性狀況與去年年底相比仍基本保持穩定，這體現了我們強勁的現金產生能力和嚴謹的經營策略。

We will be coming up on our three-year anniversary as a public company soon on August 18. I would like to take this as an opportunity to reflect on how we have deployed capital over the last 3 years. We received gross proceeds of $41 million from our IPO in 2022. Since then, we have executed $71 million in share buybacks and $87 million in strategic acquisitions to create value. We remain focused on this disciplined approach to support long-term growth strategies and returning shareholder value.

8月18日，我們即將迎來上市公司三週年紀念日。我想藉此機會回顧過去三年我們的資本配置情況。 2022年，我們透過IPO獲得了4,100萬美元的總收益。自此之後，我們進行了7,100萬美元的股票回購和8,700萬美元的策略性收購，以創造價值。我們將繼續專注於這種嚴謹的策略，以支持長期成長策略並回報股東價值。

Turning to our outlook for the third quarter. Total revenue is expected to be between $295 million and $310 million. I would like to take a moment to discuss how recent tariff developments may impact the coming quarters.

談到我們對第三季的展望。預計總收入將在2.95億美元至3.1億美元之間。我想花點時間討論一下近期關稅變化可能對未來幾季產生的影響。

As we all know, April saw a short-lived but sharp spike in tariffs. While these tariffs have since stabilized, this resulted in cost increases for products procured during that period, which as discussed last quarter, will largely cycle through our Q3 sales.

眾所周知，4月關稅出現了短暫但急劇的上漲。雖然這些關稅隨後已趨於穩定，但這導致該期間採購的產品成本上升。正如上一季所討論的，這項變更將在很大程度上影響我們第三季的銷售。

As a result, we expect an around 2.5% gross margin headwind in the coming quarter. While we anticipate offsetting these cost pressures through targeted price increases, the supply chain will require some time to fully absorb and adjust to these changes. As a result, we may still see temporary near-term impact before normalization occurs. Thank you all for your time and attention today. With that, I will turn it over to the operator for Q&A.

因此，我們預計下一季毛利率將面臨約2.5%的下行壓力。雖然我們預計會透過有針對性的漲價來抵消這些成本壓力，但供應鏈需要一些時間來完全吸收和適應這些變化。因此，在成本恢復正常之前，我們可能仍會受到短期影響。感謝大家今天的時間和關注。接下來，我將把時間交給接線員進行問答。

(Operator Instructions)

（操作員指示）

If you're on a speakerphone, please pick up the handset to ask your question.

如果您正在使用免持電話，請拿起聽筒提出您的問題。

Your first question comes from Tom Forte with Maxim Group. Please go ahead.

您的第一個問題來自 Maxim 集團的 Tom Forte。請繼續提問。

Great. So, One question and one follow up. So congratulations on the quarter. Can you give a little more details on Noble House's performance in the June quarter and then where you stand on your SKU rationalization efforts as we enter the second half of 2025 as it pertains to Noble House.

太好了。所以，我先問一個問題，然後再跟進。恭喜本季取得佳績。能否詳細介紹Noble House在6月季度的業績，以及在2025年下半年，您在SKU合理化方面的進展如何？

Thank you, Tom. So I think we've made pretty good progress with the few rationalization efforts overall. Like Iman talked about earlier, we've since introduced 1,200 new SKUs and also trimmed down the overall portfolio to kind of remove a lot of the older ones that weren't contributing positively, so. The results of these efforts combined with kind of working that in with the marketplace and leveraging the efficiencies have really, I think, performed quite well in Q2 and overall I think our project is a little bit ahead of schedule and it's kind of being meaningful margins a little earlier than we expected during, the peak season of outdoors in Q2.

謝謝，湯姆。所以我認為我們總體上在幾項合理化措施上取得了相當大的進展。正如伊曼之前提到的，我們推出了1200個新的SKU，並精簡了整體產品組合，移除了許多沒有帶來正面貢獻的舊產品。這些努力的成果，加上我們與市場的合作以及效率的提升，我認為在第二季確實取得了相當不錯的業績。總的來說，我們的專案進度略微提前，利潤率的顯著提升也比我們預期的要早一些，尤其是在第二季戶外用品旺季。

Moving ahead, the SKU rationalization efforts will be continued and hopefully by next Q2, which is the coming the next peak sale season for outdoors, is when we expect the portfolio to reach kind of a stabilized.

展望未來，SKU 合理化努力將繼續進行，希望到明年第二季度，也就是即將到來的戶外銷售旺季，我們預期產品組合將達到某種穩定。

Stage where there's just a normal stable amount of SKUs being retired and introduced rather than an entire overhaul.

此階段僅淘汰和引入正常穩定數量的 SKU，而不是進行全面改革。

Thinking from my follow up, we're hearing from suppliers that with the dynamic tariff environment, sometimes you're seeing, Things, for example, go from China to Southeast Asia.

從我的後續思考來看，我們從供應商那裡聽說，在動態關稅環境下，有時你會看到，例如，貨物從中國運往東南亞。

So, and then successfully capture a lower tariff rate, but then face a higher build cost. So as it pertains to the Where your items are sourced from.

所以，即使成功獲得較低的關稅稅率，也面臨更高的生產成本。這和你的產品來源地有關。

How should we think about not just the tariff impact inside and outside China, but the relative sourcing costs.

我們應該如何考慮不僅中國境內外的關稅影響，而且相對採購成本。

So I think the key here is really flexibility, especially during times where things seem to change quite rapidly, and even though things are a little calmer now, there still is a decent amount of uncertainty. This is kind of What we have always focused on, and one of the things we do best is maintaining strong relationships with a very large network of suppliers and having a dynamic portfolio that allows us to react quickly based on what current policies are and where we need to be sourcing from.

所以我認為這裡的關鍵在於靈活性，尤其是在情況瞬息萬變的時期。儘管現在情況有所緩和，但仍存在相當大的不確定性。這正是我們一直以來的重點，我們最擅長的事情之一就是與龐大的供應商網絡保持穩固的關係，並擁有一個動態的投資組合，這使我們能夠根據當前的政策和我們需要的採購地點快速做出反應。

Thank you for taking my questions.

感謝您回答我的問題。

Thank you, Tom.

謝謝你，湯姆。

Your next question comes from Matthew Koranda with Roth Capital. Please go ahead.

下一個問題來自羅斯資本的馬修·科蘭達。請繼續。

Hey guys, thanks, just on the second quarter here where like sort of the upside, to your initial guidance came from maybe do you want to discuss sort of how things progress through the quarter and what surprised you to the upside that that drove the strong, execution in the second quarter.

嘿，夥計們，謝謝，就第二季度而言，您的初步指導似乎有所改善，您是否想討論一下本季度的情況如何，以及哪些方面令您感到驚訝，從而推動了第二季度的強勁執行。

Yeah, thank you, Matt. So the big surprise for us was Noble House.

是的，謝謝你，馬特。所以，我們最大的驚喜是貴族之家。

Originally when we gave Q1 guidance we were modeling in a larger year over year decline because of the SKU rationalization.

最初，當我們給出第一季指引時，我們預測由於 SKU 合理化，同比下降幅度會更大。

We might have been a little bit, conservative in our estimate given this is the first outdoor seasons that we've had the opportunity to TRY out all of our new SKUs, and the performance was better than expected.

由於這是我們有機會試用所有新 SKU 的第一個戶外季節，我們的估計可能有點保守，而且表現比預期的要好。

Okay, and then the tariff impact that you mentioned toward the end of the prepared remarks 2.5% I assume that's gross margin headwind is that unmitigated so that you have essentially, levers at your disposal to pull to offset some of that 2.5, so 2.5 is as bad as it'll get, maybe just talk a little bit about the mitigation efforts.

好的，然後您在準備好的評論結束時提到的關稅影響 2.5%，我認為這是毛利率的不利因素，並且這種不利因素尚未得到緩解，因此您基本上可以使用槓桿來抵消其中的一部分 2.5，所以 2.5 已經是最糟糕的情況了，也許我們可以稍微談一下緩解措施。

Yes, that's right, that's unmitigated. So, the strategy is to move down the line, have targeted price increases on certain products where market allows, but naturally this isn't something that, I think. The entirety of the supply chain just adjusts to and digest overnight. It'll likely take a bit of time, and we don't know if the levers will allow us to absorb the 2.5% estimated headwind right away 100%.

是的，沒錯，這是絕對的。所以，我們的策略是逐步推進，在市場允許的情況下，對某些產品進行有針對性的漲價，但我認為這自然不是一朝一夕就能做到的。整個供應鏈需要一夜之間才能適應並消化。這可能需要一些時間，我們不確定這些槓桿是否能讓我們立即完全吸收預期2.5%的逆風。

Okay, I'll leave it there. Thank You.

好的，我就不說了。謝謝。

Thank you.

謝謝。

There are no further questions at this time, and that does conclude our conference for today.

目前沒有其他問題，今天的會議就此結束。

Thank you for participating. You may now disconnect.

感謝您的參與。您現在可以斷開連線了。