Hamilton Beach Brands Holding Co (HBB) 2025 Q1 法說會逐字稿

Thank you for standing by. At this time, I would like to welcome everyone to today's Hamilton Beach Brands' first-quarter 2025 earnings conference call. (Operator Instructions)

感謝您的支持。現在，我歡迎大家參加今天的漢密爾頓海灘品牌 2025 年第一季財報電話會議。（操作員指示）

So without further ado, I would like to turn the call over to Brendan Frey, partner with ICR. Brendan, you have the floor.

因此，事不宜遲，我想將電話轉給 ICR 合夥人 Brendan Frey。布倫丹，請你發言。

Thank you, Greg. Good afternoon, everyone, and welcome to the first-quarter 2025 earnings conference call and webcast for Hamilton Beach Brands. Earlier today, after the stock market closed, we issued our first-quarter 2025 earnings release, which is available on our corporate website.

謝謝你，格雷格。大家下午好，歡迎參加漢密爾頓海灘品牌 2025 年第一季財報電話會議和網路直播。今天早些時候，股市收盤後，我們發布了 2025 年第一季財報，可在我們公司網站上查閱。

Our speakers for the today are Scott Tidey, President and CEO; and Sally Cunningham, Senior Vice President, Chief Financial Officer, and Treasurer.

今天的演講者是總裁兼執行長 Scott Tidey；以及資深副總裁、財務長兼財務主管 Sally Cunningham。

Our presentation today includes forward-looking statements. These statements are subject to risk and uncertainty that could cause actual results to differ materially from those expressed in either our prepared remarks or during the Q&A. Additional information regarding these risks and uncertainties is available in our 10-Q, our earnings release, and our annual report on Form 10-K for the year ending December 31, 2024.

我們今天的演示包含前瞻性陳述。這些聲明受風險和不確定性的影響，可能導致實際結果與我們準備好的評論或問答期間表達的結果有重大差異。有關這些風險和不確定性的更多信息，請參閱我們的 10-Q、收益報告以及截至 2024 年 12 月 31 日的年度報告 10-K 表。

The company disclaims any obligation to update these forward-looking statements, which may not be updated until our quarterly conference call -- our next quarterly conference call, if at all.

本公司不承擔更新這些前瞻性聲明的任何義務，這些聲明可能要等到我們的季度電話會議（如果有的話，也是我們的下一次季度電話會議）才會更新。

The company will also discuss certain non-GAAP measures. Reconciliation for regulation G purposes can be found in our earnings release. And I'll now turn the call over to Scott. Scott?

該公司還將討論某些非公認會計準則指標。在我們的收益報告中可以找到符合 G 條例目的的對帳資訊。現在我將把電話轉給史考特。史考特？

Thank you, Brendan, and good afternoon, everyone. Thank you for joining us today.

謝謝你，布倫丹，大家下午好。感謝您今天加入我們。

The year got off to a good start with first-quarter sales and operating profit both showing solid improvement despite increasing macroeconomic headwinds. We entered 2025 with good momentum following a successful holiday season, and we were able to maintain our positive trajectory over the first three months.

今年開局良好，儘管宏觀經濟逆風不斷增加，但第一季的銷售額和營業利潤均呈現穩定成長。在一個成功的假期之後，我們以良好的勢頭進入了 2025 年，並​​且在前三個月保持了積極的軌跡。

Our top-line performance was led by our North America consumer business, driven by demand for our mass market brands. Increased penetration from higher margin businesses such as premium and healthcare helped fuel another healthy gain in gross margins year over year, which, along with lower operating costs, resulted in a $3.2 million improvement in operating profit.

我們的營收表現主要由北美消費者業務所帶動，這主要得益於大眾市場品牌的需求。保費和醫療保健等高利潤業務的滲透率提高，推動毛利率年比再次健康成長，再加上營運成本降低，導致營業利潤增加了 320 萬美元。

We are pleased with our overall first-quarter results. As we exited March, we were on track to achieve the full-year guidance we provided on our Q4 call in late February, even as the US imposed 20% tariffs on all Chinese imports.

我們對第一季的整體業績感到滿意。3 月結束時，儘管美國對所有中國進口產品徵收 20% 的關稅，我們仍有望實現 2 月底第四季電話會議上提出的全年預期。

With the reciprocal tariffs levied against us -- levied against all trade partners in April and the increase in China tariffs to 145%, visibility into near-term trends has become much more challenging. We are taking actions to mitigate the impact of higher tariffs, which Sally and I will speak to later in the call, but these will take time to flow through our supply chain and income statement.

由於 4 月美國對所有貿易夥伴都徵收了互惠關稅，而且中國的關稅也提高到了 145%，因此，短期趨勢的可視性變得更具挑戰性。我們正在採取行動減輕提高關稅的影響，我和莎莉稍後將在電話會議上討論這個問題，但這些措施需要時間才能滲透到我們的供應鏈和損益表中。

While we expect the next few quarters to be difficult for the industry, we are confident in our ability to navigate these headwinds and emerge with our leading market position intact.

雖然我們預計未來幾季對產業來說將是艱難的，但我們有信心克服這些不利因素，並保持我們領先的市場地位。

In the meantime, we continue to execute against our six strategic initiatives, which serve as the blueprint for driving long-term growth and shareholder value for Hamilton Beach Brands. These strategies include driving core growth, gaining share in the premium market, leading in the global commercial market, accelerating growth of Hamilton Beach health, accelerating our digital transformation, and leveraging partnerships and acquisitions.

同時，我們繼續執行六項策略舉措，這些舉措是推動漢密爾頓海灘品牌長期成長和股東價值的藍圖。這些策略包括推動核心成長、在高端市場中獲得份額、在全球商業市場中佔據領先地位、加速漢密爾頓海灘健康的成長、加速我們的數位轉型以及利用合作夥伴關係和收購。

I'll now take a few minutes to highlight some of the recent drivers behind the advancements of these strategies, starting with the drivers of core brand growth in the first quarter. Hamilton Beach brand sales were up modestly compared to the first quarter of 2024 as we take advantage of positive eating and entertaining at home trends. Our success was driven largely by the growth of our US consumer and Latin American businesses. We were also pleased to see continued market share gain of the Hamilton Beach Brand in Mexico this quarter.

現在，我將花幾分鐘時間重點介紹這些策略進步背後的一些近期驅動因素，首先是第一季核心品牌成長的驅動因素。由於我們利用積極的居家飲食和娛樂趨勢，漢密爾頓海灘品牌的銷售額與 2024 年第一季相比略有增長。我們的成功很大程度上得益於美國消費者和拉丁美洲業務的成長。我們也很高興看到本季漢密爾頓海灘品牌在墨西哥的市佔率持續成長。

In the US, we continue to make progress expanding our reach and expect to benefit from key big box door placement wins in the back half of the year, which should help drive further penetration of our core business in (technical difficulty).

在美國，我們繼續在擴大業務範圍方面取得進展，並預計將受益於下半年關鍵大型賣場門市的勝利，這將有助於進一步推動我們核心業務在（技術難度）。

Turning to our premium business, our powerful portfolio of premium-owned and licensed small appliance brands collectively delivered mid-single digit growth in Q1, driven largely by exceptional growth in both our new milk and CHI brand products as consumers continue to react positively to our new products introduced over the past year.

談到我們的高端業務，我們強大的高端自有和授權小家電品牌組合在第一季度總體實現了中等個位數增長，這主要得益於我們的新牛奶和 CHI 品牌產品的出色增長，因為消費者對我們在過去一年推出的新產品反應持續積極。

New milk plant-based milk makers continue to gain traction among health conscious consumers who value creating fresh, preservative-free alternatives on demand, aligning perfectly with current trends towards healthier and more sustainable options. We also saw continued success with our CHI Iron in the first quarter, highlighted by a successful partnership with one of the largest club stores in North America. These performances were partially offset by the planned wind down of our licensing agreement with Wolf Gourmet.

新型植物奶生產商繼續受到注重健康的消費者的青睞，他們重視按需生產新鮮、不含防腐劑的替代品，這與當前更健康、更永續的選擇趨勢完全一致。第一季度，我們的 CHI Iron 也繼續取得成功，其中最突出的是與北美最大的俱樂部商店之一的成功合作。由於我們計劃終止與 Wolf Gourmet 的授權協議，因此這些業績有所抵銷。

While this will be a temporary drag on results, we're excited about the launch of Lotus, our new owned premium brand, in the back half of this year. Lotus will be the premium small kitchen appliance brand for home cooks with big culinary ambition. At launch, the brand will introduce seven new Lotus Professional products including the perfectionist, air fryer and convection oven, the top drip, coffee maker and ground scale, and the four-slice precision toaster. This full range will position us to take share in the nearly $4 billion total addressable premium market.

雖然這會暫時拖累業績，但我們對今年下半年推出的新高端品牌 Lotus 感到非常興奮。Lotus 將成為擁有遠大烹飪抱負的家庭廚師的高端小型廚房電器品牌。在發布會上，該品牌將推出七款新的 Lotus Professional 產品，包括完美主義者、氣炸鍋和對流烤箱、頂部滴濾咖啡機、咖啡機和地面秤以及四片精密烤麵包機。這項全系列產品將使我們在總額近 40 億美元的高端市場中佔有一席之地。

The response from specialty retailers to this new line of sleek, innovative, small appliances has been very positive so far. Looking ahead, we plan to expand offerings under Lotus in 2026 with three new introductions under the signature line.

到目前為止，專業零售商對這款時尚、創新的小型家電新產品的反應非常積極。展望未來，我們計劃在 2026 年擴大 Lotus 旗下的產品線，推出三款新產品。

Turning now to our commercial business. Along with a strong demand for our signature products like the Summit Edge Blender, we continue to evaluate new opportunities for potential partnerships in the global commercial market. To this end, we signed a new agreement with Sunkist to develop and market Sunkist branded commercial juicers and sectionizers which are used in leading restaurants, schools, and a large restaurant chain throughout the US. As we look to leverage this new opportunity, we're excited about the potential future partnership with a whole new customer base.

現在談談我們的商業業務。隨著對我們標誌性產品（如 Summit Edge Blender）的強勁需求，我們將繼續評估在全球商業市場上尋找潛在合作夥伴的新機會。為此，我們與新奇士簽署了一項新協議，開發和銷售新奇士品牌的商用榨汁機和分割機，這些產品被美國各地的頂級餐廳、學校和大型連鎖餐廳使用。當我們尋求利用這項新機會時，我們對未來與全新客戶群的潛在合作感到非常興奮。

And lastly, regarding our newest business segment, Hamilton Beach Health, we were pleased with the segment's first-quarter performance, which marked its third consecutive quarter of increasing patient subscriptions.

最後，關於我們最新的業務部門漢密爾頓海灘健康，我們對該部門第一季的業績感到滿意，這是其連續第三個季度增加患者訂閱量。

Since acquiring HealthBeacon early last year, we've been developing healthcare management tools, including remote therapeutic monitoring systems. As part of our goal to grow our patients subscription base by over 50% this year, we're excited to launch with our newest specialty pharma partner, Optum Health, later this quarter. As we look forward, we remain excited about this high-margin business and the untapped potential that lies ahead.

自去年年初收購 HealthBeacon 以來，我們一直在開發醫療保健管理工具，包括遠距治療監測系統。作為我們今年將患者訂閱基礎擴大 50% 以上的目標的一部分，我們很高興能在本季稍後與我們最新的專業製藥合作夥伴 Optum Health 合作推出這項服務。展望未來，我們仍然對這項高利潤業務和未來尚未開發的潛力感到興奮。

Across each of our positions, we are focused on growing through our existing distribution while also selectively expanding our physical reach and growing our digital presence through our digital transformation efforts. This has allowed us to capitalize on the consumer shift to online shopping, with roughly 40% of the US consumer sales now coming via e-commerce. I'm pleased to report that we delivered mid-single digit e-commerce growth in the first quarter with gains across leading e-commerce retailers, our brick-and-mortar partner digital platforms, and our branded websites.

在我們每一個職位上，我們都專注於透過現有的分銷管道實現成長，同時有選擇地擴大我們的實體覆蓋範圍，並透過數位轉型努力增強我們的數位影響力。這使我們能夠利用消費者轉向線上購物的趨勢，目前美國約有 40% 的消費者銷售來自電子商務。我很高興地報告，我們在第一季實現了中等個位數的電子商務成長，領先的電子商務零售商、我們的實體合作夥伴數位平台和我們的品牌網站都取得了成長。

Following a solid first quarter, trends have slowed in April as our retail customers and consumers digest the tariff increases and weigh the potential impacts from ongoing negotiations. As I said earlier, we are taking actions to mitigate the impact to our cost.

繼第一季表現穩健之後，由於我們的零售客戶和消費者正在消化關稅上調的影響，並權衡正在進行的談判的潛在影響，4 月的趨勢有所放緩。正如我之前所說，我們正在採取行動減輕對我們成本的影響。

First, we are implementing a round of price increases in Q2 to address the first round of IEEPA tariffs. We enjoy strong relationships with our retail partners and are maintaining open dialogue as we navigate global tariff implications together.

首先，我們將在第二季實施一輪價格上調，以應對第一輪IEEPA關稅。我們與零售合作夥伴保持著良好的關係，並在共同應對全球關稅影響的過程中保持開放的對話。

Second, we have taken proactive sourcing actions, including a pull-forward inventory purchases from suppliers in Q1 to minimize tariff impact. We have also recently certified our main distribution center as a foreign trade zone to help manage cash flow and tariff impacts.

其次，我們採取了積極的採購行動，包括在第一季提前從供應商採購庫存，以盡量減少關稅的影響。我們最近也將我們的主要配送中心認證為對外貿易區，以協助管理現金流和關稅影響。

Lastly, we are accelerating our sourcing diversification, prioritizing the movement of product manufacturing based on volume and profitability.

最後，我們正在加速採購多元化，優先考慮基於產量和獲利能力的產品製造活動。

Historically, 25% of our sales have originated outside of the US and are not subject to recent tariff actions. For the remaining 75% of sales that are US-based, we have already transitioned approximately 15% of our manufacturing out of China and expect to have two-thirds of our US sales coming from outside of China by the end of 2025, with the remainder to be moved in the first half of next year. We are confident that these actions will positively benefit our margin profile in 2026.

從歷史上看，我們 25% 的銷售額來自美國境外，因此不受近期關稅行動的影響。對於剩餘 75% 的美國銷售額，我們已經將大約 15% 的製造業務轉移出中國，預計到 2025 年底，我們美國銷售額的三分之二將來自中國以外，其餘部分將在明年上半年轉移。我們相信，這些措施將對我們 2026 年的利潤率狀況產生正面影響。

With that, turn it over to Sally.

說完，就把它交給莎莉。

Great. Thank you, Scott. Good afternoon, everyone. To echo Scott's comments, we are pleased with our start to 2025, marked by positive sales and operating profit momentum, even as macroeconomic headwinds began to strengthen in the first quarter.

偉大的。謝謝你，斯科特。大家下午好。與斯科特的評論相呼應，我們對 2025 年的開局感到滿意，儘管第一季宏觀經濟逆風開始增強，但我們仍保持了積極的銷售和營業利潤勢頭。

Starting with revenue, total revenue in the first quarter was $133.4 million a 4% increase over last year's first quarter. The increase was driven primarily by favorable product mix as well as higher volume, partially offset by expected average price decreases and foreign currency impacts.

從營收開始，第一季總營收為 1.334 億美元，比去年第一季成長 4%。成長主要得益於有利的產品組合以及更高的銷量，但預期的平均價格下降和外匯影響部分抵消了這一增長。

Regionally, our North American consumer markets delivered solid growth, with the majority of the contribution coming from the US market. These gains were partially offset by slight revenue declines internationally. Also included in the first quarter was $1.5 million of revenue from our HealthBeacon business.

從地區來看，我們的北美消費市場實現了穩健成長，其中大部分貢獻來自美國市場。這些收益被國際收入的輕微下降部分抵消。第一季還包括來自我們 HealthBeacon 業務的 150 萬美元收入。

Turning to gross profit in margin. Gross profit was $32.8 million in the first quarter compared to $30.1 million in the year-ago period. Gross profit margin was 24.6% compared to 23.4% in last year's first quarter. The increase in gross profit margin in the current quarter was primarily due to favorable product mix in the period highlighted by the addition of our higher margin HealthBeacon business.

轉向毛利率。第一季毛利為 3,280 萬美元，去年同期為 3,010 萬美元。毛利率為24.6%，而去年第一季為23.4%。本季毛利率的成長主要歸功於本期間良好的產品組合，尤其是增加了利潤率更高的 HealthBeacon 業務。

Selling, general and administrative expenses decreased slightly to $30.4 million compared to $30.9 million in the first quarter of 2024. The decrease was primarily driven by HealthBeacon transaction costs that did not recur in the current year period.

銷售、一般及行政費用較 2024 年第一季的 3,090 萬美元略有下降，為 3,040 萬美元。下降的主要原因是本年度期間未再次發生 HealthBeacon 交易成本。

Operating profit was $2.3 million compared to an operating loss of $943,000 in the first quarter of 2024.

營業利潤為 230 萬美元，而 2024 年第一季的營業虧損為 943,000 美元。

Net interest income in the first quarter was $72,000 compared to net interest expense of $156,000 a year ago due to investment of increased cash on hand compared to the year-ago period.

第一季淨利息收入為 72,000 美元，而去年同期的淨利息支出為 156,000 美元，原因是與去年同期相比，庫存現金投資增加。

Income tax expense was $729,000 in the first quarter compared to an income tax benefit of $110,000 a year ago. Net income was $1.8 million, or $0.13 per diluted share, compared to a net loss of $1.2 million, or $0.08 per diluted share a year ago.

第一季的所得稅支出為 729,000 美元，而去年同期的所得稅收益為 110,000 美元。淨收入為 180 萬美元，即每股攤薄收益 0.13 美元，而去年同期淨虧損為 120 萬美元，即每股攤薄收益 0.08 美元。

Now turning to our balance sheet and cash flows. For the quarter ended March 31, 2025, net cash provided by operating activities was $6.6 million compared to $19.7 million for the quarter ended March 31, 2024.

現在轉向我們的資產負債表和現金流量。截至 2025 年 3 月 31 日的季度，經營活動提供的淨現金為 660 萬美元，截至 2024 年 3 月 31 日的季度為 1,970 萬美元。

Net working capital provided $16.3 million of cash compared to $33.5 million in the year-ago period. The decrease was primarily due to improvements in trade receivable collections that benefited the year-ago period, combined with a notable level of inventory pulled forward ahead of recent tariff-related uncertainty in the current year period. Capital expenditures were $516,000 in the first quarter of 2025 compared to $942,000 in the first quarter of 2024.

淨營運資本提供現金 1,630 萬美元，去年同期為 3,350 萬美元。下降的主要原因是貿易應收帳款回收情況比去年同期有所改善，再加上今年期間在近期與關稅相關的不確定性之前庫存水準明顯提前。2025 年第一季的資本支出為 516,000 美元，而 2024 年第一季的資本支出為 942,000 美元。

We continue to follow our disciplined capital allocation strategy of reinvesting in the business and rewarding shareholders in the first quarter. During the three months ended March 31, 2025, we returned value to our shareholders through the repurchase of 141,435 shares totaling $2.7 million and paid a total of $1.6 million in dividends.

我們將繼續遵循嚴謹的資本配置策略，在第一季將業務再投資並回報股東。在截至 2025 年 3 月 31 日的三個月內，我們透過回購總計 270 萬美元的 141,435 股股票向股東返還了價值，並支付了總計 160 萬美元的股息。

Over the last few years, we've allocated much of our free cash flow to significantly reducing debt, returning shareholder values through cash dividends and stock buybacks, and last year, to fund our HealthBeacon acquisition. Looking ahead, we will continue our prudent approach, prioritizing the most impactful allocation of capital in the current operating environment.

過去幾年中，我們將大部分自由現金流用於大幅減少債務、透過現金分紅和股票回購回報股東價值，去年也用於資助對 HealthBeacon 的收購。展望未來，我們將繼續採取審慎的態度，優先考慮在當前營運環境下最具影響力的資本配置。

On March 31, 2025, our net debt position, or total debt minus cash and cash equivalents and highly liquid short-term investments, was $1.7 million compared to a net debt position of $23.7 million at the end of the prior year period.

截至 2025 年 3 月 31 日，我們的淨債務狀況（即總債務減去現金、現金等價物和高流動性短期投資）為 170 萬美元，而去年末的淨債務狀況為 2,370 萬美元。

Now turning to our outlook. As Scott mentioned, Our first-quarter performance had us on track to achieve the full-year guidance we outlined in our fourth-quarter earnings call. We were confident in offsetting the impact of the additional 20% tariffs imposed by the US on China in late February and early March through select price increases.

現在轉向我們的展望。正如斯科特所提到的，我們第一季的業績使我們有望實現我們在第四季度財報電話會議上概述的全年預期。我們有信心透過有針對性的漲價來抵銷美國在2月底和3月初對中國加徵20%關稅的影響。

With the reciprocal tariffs announced in April and the subsequent escalation tariffs on Chinese imports, visibility at this moment into how the remainder of the year unfolds has become more difficult. We are monitoring the situation closely and taking actions to mitigate the impact on our business, including price increases, pre-buying inventory, and accelerated diversification efforts. While we await what we hope is a positive outcome from current and future negotiations.

隨著四月份宣布的互惠關稅以及隨後對中國進口商品加徵的關稅，目前預測今年剩餘時間的情況將如何發展變得更加困難。我們正在密切關注局勢並採取行動減輕對我們業務的影響，包括提高價格、預先購買庫存和加速多元化努力。我們期待當前和未來的談判能夠取得積極成果。

Given the unpredictability of trade negotiations and responses that may occur, we think it is prudent to temporarily suspend our practice of providing guidance until conditions stabilize and visibility improves. We look forward to updating you on our progress on our second-quarter earnings call in late July.

鑑於貿易談判和可能發生的反應的不可預測性，我們認為暫時停止提供指導的做法是明智的，直到情況穩定和可見性改善。我們期待在七月下旬的第二季財報電話會議上向您通報我們的進度。

That concludes our prepared remarks. We will now turn the line back to the operator for Q&A.

我們的準備好的演講到此結束。我們現在將把線路轉回給接線員進行問答。

(Operator Instructions) Adam Bradley, AGB Capital.

（操作員指示）Adam Bradley，AGB Capital。

Hi, yeah, great job, Sally and Scott. Another good quarter.

嗨，是的，莎莉和斯科特，幹得好。又一個好季度。

I think everyone understands, given the current environment, the lack of clarity on outlook. So my questions are more of could you provide some clarity on your own comments, specifically your gross margin outlook now with the tariffs, you said in your earnings release that you expect a benefit from that in the fiscal year.

我想每個人都明白，在當前環境下，前景缺乏明朗。所以我的問題更多的是，您能否澄清一下您自己的評論，特別是現在考慮到關稅後的毛利率前景，您在收益報告中說過，您預計本財年會從中受益。

Can you clarify if you mean beyond the roughly 26% gross margin you've experienced last year and we're forecasting for this year? Do you expect these actions -- do you want tariffs to benefit beyond that? Or if not, can you please clarify what you meant?

您能否澄清一下，您的意思是超出去年約 26% 的毛利率以及我們預測的今年的毛利率嗎？您是否期待這些行動—您是否希望關稅帶來更多好處？或者如果不是，您能否澄清一下您的意思？

Hey, Adam, this is Sally. I'm not sure that we said that our margins were going to benefit in the upcoming year. I do think that we're certainly working the levers to mitigate tariffs and we're accelerating our supplier diversification. And we're working really closely with retailers as we navigate this. But at this point, as we said in our prepared remarks, we really don't have visibility that we want to share outlook about gross margins going forward.

嘿，亞當，這是莎莉。我不確定我們是否說過我們的利潤率在來年會提高。我確實認為我們正在採取各種措施來降低關稅，並且正在加速供應商多元化。我們正在與零售商密切合作，以解決這個問題。但目前，正如我們在準備好的演講中所說，我們確實還沒有看到我們想要分享的未來毛利率前景。

Okay, well that may clarify, but I'm referring to -- in your earnings release where you said and expect these actions to benefit our margin profile in 2026. So that's what I was asking for clarity, yeah.

好的，這可能解釋得更清楚了，但我指的是——在您的收益報告中，您說過並預計這些行動將有利於我們 2026 年的利潤率狀況。是的，這就是我要求澄清的。

Yeah, so Adam, I think they're -- we're sitting there saying our diversification efforts. As we move our production into other countries with lower tariffs, we feel like that's going to benefit our margins as things settle out in 2026.

是的，亞當，我認為他們——我們坐在那裡談論我們的多元化努力。隨著我們將生產轉移到關稅較低的其他國家，我們認為，隨著 2026 年情況的穩定，這將有利於我們的利潤率。

Okay, If we -- without asking you specifics, can you help investors generally? Your initiative to move sourcing outside of China has been a multi-year, that's what you've said publicly, and I think that's great, right? And now you're in a better position had you not waited.

好的，如果我們—不問您具體細節，您能為投資者提供一般性的幫助嗎？您將採購轉移到中國以外的舉措已經持續多年了，這是您公開說過的，我認為這很棒，對嗎？如果你沒有等待的話，現在你的處境會更好。

As you look to source the same products from the rest of the world, in general, are those costs or margins better or worse than what you've done in China over the last one or two years if you normalize for tariffs? Meaning like if you move out of China and you go somewhere else. Is it more expensive or is it cheaper or is it about the same?

當您尋求從世界其他地區採購相同的產品時，總體而言，如果關稅正常化，這些成本或利潤率會比過去一兩年在中國的情況更好還是更差？意思是如果你離開中國並去其他地方。是比較貴還是比較便宜還是差不多？

Yeah, I really think, kind of as you know, we've got a very broad portfolio, and as you indicated, we started this endeavor two years ago, so we've learned a lot from doing that. I will tell you each product platform is a little bit different and the location is a little bit different. I think what we feel confident in saying is that regardless of what the cost impact is as we diversify, we feel like we can negotiate the right (technical difficulty).

是的，我確實認為，正如您所知，我們擁有非常廣泛的產品組合，正如您所說，我們兩年前就開始了這項事業，因此我們從中學到了很多東西。我會告訴你每個產品平台都有一點不同，位置也有點不同。我認為，我們可以自信地說，無論多元化的成本影響如何，我們都認為我們可以協商出正確的（技術難度）。

It appears we lost Scott. Scott, are you back?

看來我們失去了斯科特。史考特，你回來了嗎？

Yeah, I'm still here.

是的，我還在這裡。

Okay, great. I'm here. Can you hear me?

好的，太好了。我在這裡。你聽得到我嗎？

So did you hear my response, Adam?

那你聽到我的回答了嗎，亞當？

No, I think we all lost you for about, I don't know, 15 seconds.

不，我想我們都失去你了，大概有，15 秒吧。

Okay. All right, so what I was saying was, as we continue to diversify our production, outside of China, whether the cost is up or down or neutral, we feel like when that product lands here in the US, we are able to maintain our margins as we take pricing activities with our retail partners.

好的。好的，所以我說的是，隨著我們繼續在中國以外實現生產多元化，無論成本是上漲、下跌還是保持穩定，我們覺得當產品抵達美國時，我們能夠透過與零售合作夥伴進行定價活動來維持利潤率。

Okay, I have some follow-ups to that, but I'll take one step back. And if there's someone else wants to ask a question, I'll yield, and if not, I'd like to follow up on that.

好的，我對此有一些後續行動，但我會退一步。如果有其他人想提問，我會讓步，如果沒有，我想繼續跟進。

There are no further questions, Adam, if you'd like to continue.

亞當，如果你想繼續的話，沒有其他問題了。

Yeah, I'll keep rolling. Thanks. So we all learned a lot in COVID and then with the other tariffs, and I'm sure you all learned a lot. So far, we're hearing with other general news that retailers, the large retailers may be pushing back on price increases.

是的，我會繼續前進。謝謝。因此，我們都從 COVID 和其他關稅中學到了很多東西，我相信你們也學到了很多。到目前為止，我們聽到的其他一般消息是，零售商，大型零售商可能正在推遲漲價。

Without being specific, are you -- it sounds like you're saying you're not experiencing that because you're you're referencing specifically to raise prices where tariffs are impacting you. So what is the response of the major retailers out there? Are they accommodating price increases in general, or are you receiving kind of some pushback on that?

如果不具體說明的話，您——聽起來您好像在說您沒有經歷過這種情況，因為您具體提到了在關稅對您有影響的情況下提高價格。那麼各大零售商的反應如何呢？他們總體上是否接受價格上漲，或者你們因此受到了一些阻力？

Yeah. I think, Adam, I'm not going to go into that in a lot of specifics. I will tell you right now that we're kind of in week four since the retaliatory tariffs have come into play. And if you look at our inventory on hand and the number of months that we have on hand, and most of our retailers have anywhere from five to eight weeks of inventory as well on hand, we're really both kind of sitting there and just doing a lot of communication as to what's the best way to move forward, right?

是的。亞當，我想我不會詳細討論這個問題。我現在就告訴你，自從報復性關稅實施以來，我們已經進入了第四週。如果你看看我們現有的庫存和庫存月份數，你會發現我們的大多數零售商都有五到八週的庫存，我們實際上都坐在那裡進行大量溝通，以確定最好的前進方式是什麼，對嗎？

And so, one, we're trying to maximize the inventory that we've got on hand. We're working very hard to diversify our product in other countries, talking through those transitions and timelines and what those costs would be. And then as things get closer for those products that we don't have diversification plans, those will be different conversations, but those haven't had to happen yet.

因此，首先，我們正在努力最大限度地利用我們手頭上的庫存。我們正在努力在其他國家實現產品多樣化，討論這些轉變和時間表以及成本。然後，隨著那些我們沒有多樣化計劃的產品的臨近，這些將是不同的對話，但這些還沒有發生。

And so we're being very open with our retailers. And there's a lot of understanding back and forth. As you know, many of our retailers source their own products from these markets, so these types of challenges are something that they're facing as well. And it's also something that we really believe the majority of our competition is dealing with.

因此，我們對零售商非常開放。雙方之間有很多的理解。如您所知，我們的許多零售商都從這些市場採購自己的產品，因此他們也面臨這些類型的挑戰。我們確信我們的大多數競爭對手也正在面臨同樣的問題。

And so it's not like we're not the only ones in the room and the only ones having this conversation. So we feel like we're all trying to figure it out together. We've got a little bit of cushion right now. We feel very good about our diversification efforts, and we're just trying to move as quickly as possible.

所以，我們並不是房間裡唯一的人，也不是唯一進行這種對話的人。所以我們感覺我們都在努力一起解決這個問題。我們現在有了一點緩衝。我們對我們的多元化努力感到非常滿意，我們只是試圖盡快採取行動。

Okay. Well, thanks for for clarifying that. I think that that's pretty helpful.

好的。好吧，感謝您澄清這一點。我認為這非常有幫助。

You did pull forward, it looks like about a $32 million like if we compare inventory levels of Q1 '25 to Q1 '24. It's about a $32 million pull forward as of the end of the quarter. That was pre-retaliatory tariff amounts.

你確實提前了，如果我們比較 25 年第一季和 24 年第一季的庫存水平，看起來大約是 3200 萬美元。截至本季末，這已相當於提前了 3,200 萬美元。這是報復性關稅金額。

Are you willing to share, have you continued to do that through April? Or what's your inventory status now?

您願意分享嗎？您在四月一直這樣做嗎？或者您現在的庫存狀況如何？

Yeah, I don't think we're going to spend a lot of time on that. As you know, kind of one of the critical dates that occurred out there was April 10 for when things could shift before they received the retaliatory percentage of 145%.

是的，我認為我們不會在這上面花費太多時間。如你所知，4 月 10 日是關鍵日期之一，在他們受到 145% 的報復性稅率之前，情況可能會在這一天發生變化。

And so, after that date, again, we feel like we've got a good inventory position in the short term. As we get closer to the holiday season and we need to start building inventory, that's when we're going to really lean on our diversification efforts or try to work out an understanding with our retail partners on what we would do with the inventory that would be coming at the higher tariff percentage.

因此，在那一天之後，我們再次感覺到我們在短期內擁有良好的庫存狀況。隨著假期的臨近，我們需要開始建立庫存，那時我們將真正依靠多元化努力，或嘗試與零售合作夥伴達成諒解，以了解我們將如何處理更高關稅百分比的庫存。

Okay, thank you. So I'm going to move on from inventory and tariffs and all that and talk about some of the other parts of the business. So HealthBeacon, you've given us kind of a basic understanding of its not only of the business strategy, but its revenue has been about $1.5 million on a quarter run-rate basis.

好的，謝謝。因此，我將不再討論庫存和關稅等問題，而是討論業務的其他部分。因此，HealthBeacon，您不僅讓我們對其業務策略有了基本的了解，而且其季度收入約為 150 萬美元。

Will you begin to break out its performance? Or maybe I'd say differently, yeah, do you have a plan to break out its its performance longer term and what should we expect from that?

你會開始展現它的表現嗎？或者也許我會換一種說法，是的，你是否有計劃長期突破其表現，我們對此應該有何期待？

Yes. I mean, I think you will continue to see a breakout of the performance. I mean, certainly, if you refer to our 10-Q, it is a segment, and so you'll see it in the segment disclosures. And then as it makes sense, we'll obviously continue to include it in our earnings releases as well. But we remain very excited about the business. It continues to grow at a better-than-expected rate. And so we're excited to see where it takes us in the future.

是的。我的意思是，我認為你會繼續看到表演的突破。我的意思是，當然，如果您參考我們的 10-Q，它是一個部分，因此您會在部分披露中看到它。然後，如果它有意義的話，我們顯然也會繼續將其納入我們的收益報告中。但我們仍然對這項業務感到非常興奮。它繼續以好於預期的速度增長。因此，我們很高興看到它未來將帶我們走向何方。

Great. All right. And then I got a housekeeping item on accounting if you could clarify, Sally. Your release said your pure repurchases -- like I have to go back and look. I think it's in the body of the release. And then the statement of cash flows has $3.4 million of share repurchases.

偉大的。好的。然後我收到了有關會計方面的一個內部事務，如果你能解釋一下的話，莎莉。您的新聞稿說您是純粹的回購——就像我必須回去看看一樣。我認為它在發布的正文中。現金流量表中有 340 萬美元的股票回購。

Is it easy enough for you to walk me through the difference in those two numbers?

您能簡單地告訴我這兩個數字之間的差異嗎？

Yeah, I think that we have two different pieces for the share repurchase. One is through our share repurchase program that was approved and governed by the Board. And then our second piece of the repurchasing in the first quarter is associated with kind of tax withholdings associated with incentive compensation. So it's the sum of those two pieces. And as they're governed under two different plans, we break them out separately.

是的，我認為我們有兩種不同的股票回購方式。一是透過董事會批准和管理的股票回購計畫。然後，我們第一季的第二部分回購與激勵薪酬相關的稅收預扣有關。所以它是這兩個部分的總和。由於它們受兩個不同的計劃管轄，因此我們將它們分別分開。

All right, well, thank you for the questions, Adam. And ladies and gentlemen, that does conclude today's call. So thank you all for joining, and you may now disconnect. Have a great day, everyone.

好的，謝謝你的提問，亞當。女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。祝大家有個愉快的一天。