Helen of Troy Ltd (HELE) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Helen of Troy First Quarter Fiscal 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the call over to Jack Jancin, Senior Vice President of Corporate Business Development. Thank you. You may begin.

大家好，歡迎參加 Helen of Troy 2023 財年第一季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。我現在想將電話轉給企業業務開發資深副總裁傑克詹辛 (Jack Jancin)。謝謝。你可以開始了。

Thank you, operator. Good morning, everyone, and welcome to Helen of Troy's First Quarter Fiscal 2023 Earnings Conference Call. The agenda for the call this morning is as follows: I'll begin with a brief discussion of forward-looking statements. Mr. Julien Mininberg, the company's CEO, will comment on the financial performance of the quarter and current trends. Then Mr. Matt Osberg, the company's CFO, will review the financials in more detail and provide an update on our financial outlook for fiscal '23. Following this, we will take questions you have for us today.

謝謝你，接線生。大家早安，歡迎參加 Helen of Troy 2023 財年第一季財報電話會議。今天上午的電話會議議程如下：我將首先簡要討論前瞻性陳述。該公司執行長 Julien Mininberg 先生將評論本季的財務表現和當前趨勢。然後，公司財務長 Matt Osberg 先生將更詳細地審查財務狀況，並提供我們 23 財年財務前景的最新資訊。接下來，我們今天將回答您向我們提出的問題。

This conference call may contain certain forward-looking statements that are based on management's current expectation with respect to future events or financial performance. Generally, the words anticipates, believes, expects, and other words similar are words identifying forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from the actual results.

本次電話會議可能包含某些基於管理層目前對未來事件或財務表現的預期的前瞻性陳述。一般來說，「預期」、「相信」、「期望」以及其他類似的字詞都是辨識前瞻性陳述的字眼。前瞻性陳述受到許多風險和不確定性的影響，這些風險和不確定性可能導致預期結果與實際結果有重大差異。

This conference call may also include information that may be considered non-GAAP financial information. These non-GAAP measures are not an alternative to GAAP financial information and may be calculated differently than the non-GAAP financial information disclosed by other parties. The company cautions listeners not to place undue reliance on forward-looking statements or non-GAAP financial information.

本次電話會議也可能包括可能被視為非公認會計準則財務資訊的資訊。這些非 GAAP 指標不能取代 GAAP 財務信息，且計算方式可能與其他方揭露的非 GAAP 財務資訊不同。該公司提醒聽眾不要過度依賴前瞻性陳述或非公認會計準則財務資訊。

Before I turn the call over to Mr. Mininberg, I would like to inform all interested parties that a copy of today's earnings release has been posted to the Investor Relations section of the company's website at www.helenoftroy.com. The earnings release contains tables that reconcile non-GAAP financial measures to their corresponding GAAP-based measures. The release can be obtained by selecting the Investor Relations tab on the company's homepage and then the Press Releases tab.

在我將電話轉給 Mininberg 先生之前，我想通知所有有興趣的各方，今天的收益報告副本已發佈到公司網站 www.helenoftroy.com 的投資者關係部分。收益發布包含將非公認會計準則財務指標與其相應的基於公認會計準則的指標進行協調的表格。可以透過選擇公司主頁上的「投資者關係」選項卡，然後選擇「新聞稿」選項卡來取得該新聞稿。

I will now turn the conference call over to Mr. Mininberg.

我現在將電話會議轉交給米寧伯格先生。

Thank you, Jack. Good morning, everyone, and thank you for joining us. Today, I would like to talk about our first quarter results, the new headwinds that have emerged in the macro environment since our April call and our revised outlook for this fiscal year. I will also introduce several new initiatives we are implementing right now to address those headwinds as well as a broader project we are launching this summer intended to realize additional improvements to our efficiency and overall cost structure.

謝謝你，傑克。大家早安，感謝您加入我們。今天，我想談談我們的第一季業績、自 4 月電話會議以來宏觀環境中出現的新阻力以及我們對本財年展望的修訂。我還將介紹我們目前正在實施的幾項新舉措，以解決這些不利因素，以及我們今年夏天啟動的一個更廣泛的項目，旨在進一步提高我們的效率和整體成本結構。

Starting with the quarter, we are very pleased to report consolidated revenue and adjusted diluted EPS above the outlook ranges we provided in April. The results for the quarter speak to the hard work throughout Helen of Troy as we navigate what has rapidly become an even more challenging environment and we, our retail customers and consumers expected.

從本季開始，我們非常高興地報告合併收入和調整後稀釋後每股收益高於我們 4 月提供的展望範圍。本季的業績證明了 Helen of Troy 在應對迅速變得更具挑戰性的環境時所付出的辛勤工作，這也是我們、我們的零售客戶和消費者所期望的。

Core sales declined 2.5% in by far the toughest comparison period of the year. As a reminder, we grew core sales 30.4% in the first quarter of last year. As noted in our April release, retail customers pulled approximately $20 million in sales from this quarter into the fourth quarter of last fiscal year as they replenish their inventory levels from strong POS and some accelerated purchases ahead of our price increases.

在今年迄今為止最艱難的比較時期，核心銷售額下降了 2.5%。提醒一下，去年第一季我們的核心銷售額成長了 30.4%。正如我們在4 月的新聞稿中指出的那樣，零售客戶從本季度到上一財年第四季度的銷售額約為2000 萬美元，因為他們透過強大的POS 補充了庫存水平，並且在我們提價之前加速了採購。

As also noted in our April call, we saw consumer buying patterns begin to change in March and April, resulting in a slowdown in demand in some categories. That continued in May as consumers adjusted their purchasing patterns and began addressing rising inflation on basics, such as gasoline and food and faced the bite from escalating interest rates.

正如我們在 4 月的電話會議中指出的那樣，我們看到消費者的購買模式在 3 月和 4 月開始發生變化，導致某些類別的需求放緩。隨著消費者調整購買模式並開始應對汽油和食品等基本商品通膨上升的問題，並面臨利率上升的影響，這種情況在五月仍在繼續。

In this environment, now more than ever, our efforts are focused on reinforcing the value and excellence our diversified portfolio of trusted leadership brands provide to consumers.

在這種環境下，我們現在比以往任何時候都更專注於加強我們值得信賴的領導品牌多元化組合為消費者提供的價值和卓越性。

Looking at our business segments. Home & Outdoor led the way with 21% growth in the quarter. Hydro Flask saw healthy sales growth at brick-and-mortar, particularly in the sporting goods, collegiate and grocery channels. Online and international were also strong for Hydro Flask. The insulated hydration bottle category gained momentum, growing over the prior year as consumers returned to pre-pandemic levels of activity such as travel, sporting events and in-person schooling. Hydro Flask grew its market share over the past 52 weeks as consumers continued to favor our brand.

看看我們的業務部門。家居及戶外用品一馬當先，本季成長 21%。 Hydro Flask 在實體店的銷售實現了健康成長，特別是在體育用品、大學和雜貨通路。 Hydro Flask 的線上和國際市場也表現強勁。隨著消費者恢復到旅行、體育賽事和麵授學校等大流行前的活動水平，保溫水瓶類別增長勢頭較上一年有所增長。隨著消費者繼續青睞我們的品牌，Hydro Flask 的市佔率在過去 52 週內不斷成長。

OXO faced an especially tough comparison period versus a year ago. Sales this quarter were also impacted by the forward pull of some retail orders into the fourth quarter of last fiscal year and by a slowdown in the growth rate of the kitchen gadget category as consumers shifted some spending away from home related goods and adjusted their budgets to address inflation.

與一年前相比，OXO 面臨著一個特別艱難的時期。本季的銷售也受到一些零售訂單提前至上一財年第四季的影響，以及廚房用具類別增速放緩的影響，因為消費者將部分支出從家居相關商品上轉移，並調整了預算解決通貨膨脹問題。

Osprey performed well and in line with our expectations despite some short-term production challenges and transit delays as we catch up on inventory from the prior year supply chain interruptions. Our integration plans are on track. One example during the quarter was the integration of all 3 Home & Outdoor brands, OXO, Hydro Flask and Osprey under one European go-to-market operation to begin leveraging the combined outdoor expertise of Osprey and Hydro Flask and benefit from the scale of our larger company-wide EMEA regional market organization. We are very excited about the growth prospects of this leadership brand.

儘管由於我們補充了上一年供應鏈中斷的庫存，但儘管存在一些短期生產挑戰和運輸延誤，但魚鷹的表現良好，符合我們的預期。我們的整合計劃正在按計劃進行。本季度的一個例子是將所有 3 個家居和戶外品牌 OXO、Hydro Flask 和 Osprey 整合到一個歐洲市場運營中，開始利用 Osprey 和 Hydro Flask 的綜合戶外專業知識，並從我們的規模中受益更大的全公司EMEA 區域市場組織。我們對這個領導品牌的成長前景感到非常興奮。

Turning to Beauty. Core segment sales declined by 15% in an extremely difficult compare to the segment's core growth of 109% in the first quarter of last year. While sales this quarter were partially impacted by slowing consumer demand in the hair appliance category, over the past 4 years, our beauty hair appliances have gained significant market share in brick-and-mortar and gained even more market share online. That growth in share is a strong positive reflection of the power of consumer-centric innovation, of successful acquisition and of a much more capable organization that is deeply connected to the global shared services platform built under our transformation strategy.

轉向美容。與去年第一季核心業務成長 109% 相比，核心業務銷售額下降了 15%，情況極為艱難。雖然本季的銷售部分受到美髮器具類別消費者需求放緩的影響，但在過去4 年裡，我們的美容美髮器具在實體店獲得了顯著的市場份額，在線上獲得了更多的市場份額。份額的成長強烈地積極反映了以消費者為中心的創新、成功收購以及與我們轉型策略下建立的全球共享服務平台緊密相連的更有能力的組織的力量。

On the prestige liquid side, Drybar continued to perform well, growing over the prior year as we return to better in-stock positions to meet the high demand. Curlsmith performed well in this quarter, and this integration plan is also on track. While we're on Beauty, some of you may have questions regarding the June bankruptcy filing by Revlon, Inc. So I wanted to take a moment to address that matter as it pertains to Helen of Troy. We have been licensing the Revlon brand for hair appliances for 30 years. We are an unaffiliated and separate company from Revlon, Inc. and therefore do not have specific information regarding their filing beyond what is in the public domain.

在信譽良好的液體方面，Drybar 繼續表現良好，隨著我們恢復更好的庫存狀況以滿足高需求，其比上一年有所增長。 Curlsmith本季表現良好，這項整合計畫也步入正軌。當我們討論《美容》時，你們中的一些人可能對露華濃公司(Revlon, Inc.) 六月份的破產申請有疑問。所以我想花點時間來解決這個問題，因為它與特洛伊的海倫(Helen of Troy) 有關。 30 年來，我們一直授權 Revlon 品牌美髮器具。我們是一家獨立於 Revlon, Inc. 的獨立公司，因此除了公共領域之外，我們沒有關於其備案的具體資訊。

Revlon's public statement emphasized their intention to operate their business normally as they strategically reorganize and emerge as a healthier company operating a portfolio of strong consumer brands, including their flagship Revlon brand. Based on publicly available information, we do not currently anticipate any material impact on our hair appliance business or on our ability to use the well-regarded Revlon brand name over the term of our 100-year license.

露華濃的公開聲明強調，他們打算在策略重組過程中正常經營業務，並成為一家更健康的公司，經營強大的消費品牌組合，包括旗艦露華濃品牌。根據公開消息，我們目前預計不會對我們的美髮器具業務或我們在 100 年許可期限內使用備受推崇的露華濃品牌名稱的能力產生任何重大影響。

Turning to Health & Wellness. The sales decline of 17.2% was slightly better than our expectation for the quarter. While health-related categories such as thermometers and air purifiers, continue to moderate off the historic high basis set in the peak of the pandemic, it is important to note that even with the impact of the EPA matter, overall, Health & Wellness segment sales were up 9% this quarter versus the pre-pandemic levels in the first quarter of fiscal '20.

轉向健康與保健。銷售額下降 17.2%，略優於我們對該季度的預期。雖然溫度計和空氣清淨機等與健康相關的類別繼續從大流行高峰期創下的歷史高點回落，但值得注意的是，即使受到美國環保署事件的影響，總體而言，健康與保健部門的銷售額與20 財年第一季大流行前的水準相比，本季成長了9%。

Humidification sales grew this quarter behind strong POS and lean retailer inventories. Market share for Vicks VapoPads grew strongly in the quarter. Heaters and diagnostics were also strong, including the Braun pulse oximeter. In the U.S., for thermometers, we continue to earn market share gains. We have grown our share in 16 of the past 20 months. We are proud to continue earning consumers' trust in Vicks and Braun thermometers to help take care of their families.

在強勁的 POS 和精簡的零售商庫存的推動下，本季加濕銷售額成長。 Vicks VapoPad 的市佔率在本季強勁成長。加熱器和診斷功能也很強大，包括博朗脈搏血氧計。在美國，對於溫度計，我們繼續獲得市場份額成長。在過去 20 個月中，我們的份額有 16 個月有所增長。我們很自豪能夠繼續贏得消費者對維克斯和博朗溫度計的信任，以幫助照顧他們的家人。

Our market share at air purifiers has improved since the impact of the EPA matter in fiscal '22 and capturing more of that share is our primary focus in air purification as we finish the repackaging work, and as we return more and more of our lineup to the point of sale where these products can make a difference for consumers. Similarly, in water purification, I am pleased to note that Pure has largely recovered the majority of its market share following the EPA matter.

自從22 財年EPA 問題的影響以來，我們在空氣清淨機方面的市場份額有所提高，隨著我們完成重新包裝工作，並且隨著我們將越來越多的產品系列返回到市場，我們在空氣淨化方面的主要重點是奪取更多份額。這些產品可以為消費者帶來改變的銷售點。同樣，在水淨化領域，我很高興地註意到，在 EPA 事件發生後，Pure 已基本恢復了大部分市場份額。

I would now like to turn to our revised full year fiscal '23 outlook. Since our April earnings release, it has been well publicized that the macroeconomic environment has changed significantly. Consumers are shifting their buying patterns and adapting to a number of factors, including the impact of higher-than-expected inflation and interest rates rising more rapidly than previously signaled by central bankers. In response, many of our major retail customers announced actions to rebalance their inventory stemming from rapid revisions to their sales forecast.

我現在想談談我們修訂後的 23 財年全年展望。自從我們四月的財報發布以來，宏觀經濟環境發生了重大變化，這一點已廣為人知。消費者正在改變購買模式並適應多種因素，包括高於預期的通膨和利率上升速度超過央行官員先前暗示的影響。作為回應，我們的許多主要零售客戶宣布採取行動，因快速修改銷售預測而重新平衡庫存。

Our revised fiscal year outlook reflects our current assessment of the impact from these new headwinds on our business. With regard to the retailer inventory announcements made in May and June, the major players noted higher levels than they themselves expected and described their plans to rebalance their holdings in the coming months.

我們修訂後的財年前景反映了我們目前對這些新不利因素對我們業務影響的評估。關於 5 月和 6 月發布的零售商庫存公告，主要參與者指出水平高於他們自己的預期，並描述了他們在未來幾個月重新平衡庫存的計劃。

Our outlook includes our current assessment of the impact from the resulting slowdown in our shipments as they carry out these rightsizing plants. We are in close contact with our retail partners to help them meet the demand for our trusted and consumer-preferred products. We believe it is important to note that even with these headwinds included, we expect strong organic sales growth in fiscal '23 versus the pre-COVID base of fiscal '20.

我們的前景包括我們目前對因工廠規模調整而導致的出貨量放緩所造成的影響的評估。我們與零售合作夥伴保持密切聯繫，幫助他們滿足對我們值得信賴和消費者喜愛的產品的需求。我們認為，值得注意的是，即使考慮到這些不利因素，我們預計 23 財年的有機銷售成長將較新冠疫情前的 20 財年強勁。

Our outlook also includes our plans to protect our market shares as consumers feel the pinch of higher inflation, and it preserves the most critical flywheel investment projects that we have previously announced in supply chain, IT and direct-to-consumer.

我們的前景還包括在消費者感受到通膨上升的壓力時保護我們的市場份額的計劃，並且保留了我們之前在供應鏈、IT 和直接面向消費者方面宣布的最關鍵的飛輪投資項目。

Our outlook for our 2 most recent acquisitions, Osprey and Curlsmith, remains unchanged. These businesses are on trend and continue to meet our expectations. We remain highly encouraged by the prospects and their fit within our portfolio and capabilities.

我們對最近收購的兩項收購——Osprey 和 Curlsmith 的展望保持不變。這些業務處於趨勢之中並繼續滿足我們的期望。我們仍然對前景及其與我們的產品組合和能力的契合度感到高度鼓舞。

Given the negative revenue impact on our EPS outlook, our approach is to manage what is within our control. In addition to continuing to execute our playbook to mitigate inflation and supply chain disruption, we are announcing new plans to implement a robust round of initiatives intended to reduce the total cost structure of the company and unlock new initiatives.

鑑於收入對我們的每股盈餘前景產生負面影響，我們的方法是管理我們控制範圍內的事情。除了繼續執行我們的策略以減輕通貨膨脹和供應鏈中斷之外，我們還宣布了新計劃，以實施一輪強有力的舉措，旨在降低公司的總成本結構並推出新舉措。

As part of these plans, we are making a strategic change to normalize our inventory levels. Second, we are moving faster on several efficiency projects we have identified in our Health & Wellness segment. And third, we will be launching a new program to further improve the efficiency of our organization. While we are taking immediate actions in all 3 of these areas, we expect the majority of the benefits of these plans to fall into fiscal '24.

作為這些計劃的一部分，我們正在進行策略調整，以使我們的庫存水準正常化。其次，我們正在更快地推動我們在健康與保健領域確定的幾個效率項目。第三，我們將啟動一項新計劃，以進一步提高我們組織的效率。雖然我們正在所有這三個領域立即採取行動，但我們預計這些計劃的大部分收益將體現在 24 財年。

With regard to our inventory, we are taking steps now to return to more normalized levels. During the pandemic, carrying elevated inventory proved to be a winning strategy. It helped us meet surging demand and mitigate supply chain disruptions that were hard to predict. It smoothed input cost inflation and it delivered considerable benefits for consumers, retail customers, our sales, our profitability and our market shares.

關於我們的庫存，我們現在正在採取措施恢復到更正常的水平。在大流行期間，增加庫存被證明是一個成功的策略。它幫助我們滿足激增的需求並減輕難以預測的供應鏈中斷。它緩解了投入成本通膨，為消費者、零售客戶、我們的銷售、獲利能力和市場份額帶來了可觀的利益。

Now over 2 years into the pandemic, we believe it is time to decrease our inventory in areas where we have reliable visibility. Our goal is to reduce operating costs, increase efficiency in our distribution centers and improve cash flow without impacting customer service levels.

現在疫情已經過去兩年多了，我們認為是時候減少我們能見度可靠的地區的庫存了。我們的目標是在不影響客戶服務水準的情況下降低營運成本、提高配送中心的效率並改善現金流。

As we reduce our purchase orders, we have a sharp eye on maintaining sufficient buffer stocks on items that continue to have longer lead times, and we are leaning forward on some materials and critical components that remain challenging to secure. As we bring down inventory, we are also focusing on making sure we have the most valuable mix of products to maximize the productivity of our holdings.

隨著我們減少採購訂單，我們密切注意交貨時間仍然較長的產品，保持足夠的緩衝庫存，並且我們正在重點採購一些仍然難以確保的材料和關鍵部件。在減少庫存的同時，我們也致力於確保擁有最有價值的產品組合，以最大限度地提高我們所持產品的生產力。

With regard to Health & Wellness, we are launching a new initiative called [Project Delta]. Similar to the playbook we used for Project Refuel in Beauty about 5 years ago, Project Delta now focuses first on rightsizing the segment's cost structure and margin rates and then on improving its growth rates and profitability under a new set of strategic choices. We recently began implementing a leaner Health & Wellness organization. In the coming months, we will continue to focus on cost structure improvements and the segment will implement an even sharper focus on consumer-centric innovation and design. We will concentrate resources on those Health & Wellness categories, channels and countries where we see the most attractive prospects to grow revenues, increase margins and grow market share.

在健康與保健方面，我們正在發起一項名為「Project Delta」的新計畫。與我們大約5 年前在美容行業Refuel 項目中使用的劇本類似，Delta 項目現在首先專注於調整該細分市場的成本結構和利潤率，然後在一系列新的戰略選擇下提高其增長率和盈利能力。我們最近開始實施更精簡的健康與保健組織。在接下來的幾個月中，我們將繼續關注成本結構的改善，該部門將更加關注以消費者為中心的創新和設計。我們將把資源集中在那些我們認為最具吸引力的成長收入、利潤和市場份額前景的健康與保健品類、通路和國家。

As we work on new efficiencies and cost savings in Health & Wellness, the segment will also benefit from greater use of expertise in our global shared services such as supply and demand planning, dual sourcing, and further cost of goods savings programs. We expect to share more on Project Delta as these plans unfold.

隨著我們致力於提高健康與保健領域的新效率和成本節約，該部門還將受益於更多地利用我們的全球共享服務中的專業知識，例如供需規劃、雙重採購以及進一步的商品成本節約計劃。隨著這些計劃的展開，我們預計將分享更多有關 Delta 專案的資訊。

Turning to our new program to improve efficiency, like we have done in earlier stages of our transformation, this program will look at all aspects of our organization to identify the next round of areas where we can further improve. One example is moving faster on further enhancing the efficiency of our distribution network. With our previously announced 2 million square foot Tennessee distribution center on track to open in early calendar year 2023, we now believe we can complete our consolidation, renovation and warehouse management system upgrades a year sooner than originally planned. Our goal is to further reduce costs by exiting third-party facilities earlier and increase labor efficiency through scale, IT upgrades and automation. We believe that moving faster will also allow us to accelerate realization of synergies from recent acquisitions.

談到我們提高效率的新計劃，就像我們在轉型的早期階段所做的那樣，該計劃將審視我們組織的各個方面，以確定我們可以進一步改進的下一輪領域。一個例子是加快步伐，進一步提高我們的分銷網絡的效率。我們先前宣布的 200 萬平方英尺田納西州配送中心預計將於 2023 年初開業，現在我們相信我們可以比原計劃提前一年完成整合、翻新和倉庫管理系統升級。我們的目標是透過更早退出第三方設施來進一步降低成本，並透過規模化、IT 升級和自動化來提高勞動效率。我們相信，加快步伐也將使我們能夠加速實現近期收購的綜效。

As we execute these plans, we are taking care to create ample expansion capability and capacity to efficiently manage continued long-term growth. We will provide more information on the new efficiency program as it takes shape, and expect to provide you with an update on our October call. While it is too early to make a forecast for fiscal '24, we are working hard to return to growth to finish Phase 2 with momentum. We are continuing our signature focus on consumer-centric innovation that distinguishes our leadership brands and helps us grow our market shares over time. Investing in our brands and continuing our geographic expansion also helps position us well to capitalize on opportunities as consumption recovers.

在執行這些計劃時，我們正在註意創造充足的擴張能力和能力，以有效管理持續的長期成長。我們將在新的效率計劃成形後提供更多信息，並期望在 10 月份的電話會議上向您提供最新信息。雖然現在對 24 財年做出預測還為時過早，但我們正在努力恢復成長，以強勁勢頭完成第二階段。我們將繼續以消費者為中心的創新為標誌，這使我們的領導品牌脫穎而出，並幫助我們隨著時間的推移擴大市場份額。投資我們的品牌並繼續進行地域擴張也有助於我們在消費復甦時抓住機會。

We see specific opportunity in each of our business segments. In Home & Outdoor, all 3 brands have significant pipelines of on-trend and innovative new products such as On-The-Go and Camp Kitchen. All 3 have compelling opportunities to cross-promote and to launch new products into adjacent categories. And each brand has plans to grow in new channels such as DTC and internationally.

我們在每個業務領域都看到了特定的機會。在家居和戶外領域，這三個品牌都擁有大量流行和創新的新產品，例如 On-The-Go 和 Camp Kitchen。所有這三個領域都有令人信服的機會來交叉推廣並向相鄰類別推出新產品。每個品牌都計劃在 DTC 和國際等新管道中實現成長。

In Beauty, our appliance focus is on maintaining those big market share gains I mentioned earlier, on continuing to launch new products that delight consumers and on expanding in EMEA, Asia and Latin America. We are also excited about the opportunities we see to deliver incremental beauty sales and further sweeten our mix with growth from our portfolio of high-margin prestige liquids.

在美容領域，我們的家電重點是保持我之前提到的巨大市場份額成長，繼續推出令消費者滿意的新產品，並在歐洲、中東和非洲、亞洲和拉丁美洲進行擴張。我們也對我們看到的機會感到興奮，這些機會可以增加美容產品的銷售，並透過我們的高利潤優質液體產品組合的成長進一步優化我們的產品組合。

In Health & Wellness, in addition to the margin improvement plans mentioned earlier with Project Delta, our goal is to drive revenue growth and market share gains through a renewed focus on consumer-centric product and commercial innovation. The acquisitions we made so far in Phase 2, Osprey, Curlsmith and Drybar will also help drive momentum. We have built a reputation for acquiring and improving brands that consumers adore. Our acquisitions also deliver on our strategy to further diversify our portfolio, add brands that are growing fast in on-trend categories such as prestige beauty and outdoor and accelerate our revenue and profitability growth. Each acquisition has compelling growth drivers and is expected to drive synergies and operating leverage. I remain confident in the power of our Phase 2 choices and the proven ability of our worldwide team to execute our plans with excellence. As demonstrated in Phase 1 and in the first 3 years of Phase 2, we have driven value creation with significant revenue and profitability growth ahead of our published targets.

在健康與保健領域，除了前面提到的 Delta 專案的利潤率改善計劃外，我們的目標是透過重新關注以消費者為中心的產品和商業創新來推動收入成長和市場份額的成長。到目前為止，我們在第二階段對 Osprey、Curlsmith 和 Drybar 進行的收購也將有助於推動勢頭。我們在收購和改進消費者喜愛的品牌方面建立了聲譽。我們的收購也實現了我們的策略，以進一步實現產品組合多元化，增加在高端美容和戶外等流行類別中快速成長的品牌，並加速我們的收入和獲利能力成長。每項收購都有引人注目的成長動力，預計將推動協同效應和營運槓桿。我對我們第二階段選擇的力量以及我們全球團隊卓越執行計劃的能力充滿信心。正如第一階段和第二階段的前三年所證明的那樣，我們透過收入和獲利能力的顯著增長推動了價值創造，超越了我們所公佈的目標。

We have built a seasoned leadership team and capable organization that has proven to be nimble in rapidly changing environments over all of the years of our transformation. As we develop our Phase 3 plans, our goal is to further scale that platform that we built in Phases 1 and 2 and bring new consumer-centric innovation, new marketing plans, new expansion plans that will fuel the next generation of profitable organic and inorganic growth to drive significant additional value creation.

我們建立了一支經驗豐富的領導團隊和有能力的組織，事實證明，在我們多年的轉型過程中，他們能夠在快速變化的環境中保持靈活性。在製定第三階段計劃時，我們的目標是進一步擴展我們在第一階段和第二階段建立的平台，並帶來新的以消費者為中心的創新、新的行銷計劃和新的擴張計劃，這些計劃將推動下一代盈利的有機和無機業務成長以推動顯著的附加價值創造。

And with that, I would like to hand the call over to Matt Osberg, our CFO.

說到這裡，我想將電話轉交給我們的財務長馬特·奧斯伯格。

Thank you, Julien. Good morning, everyone. I would like to begin with a discussion of our first quarter results. Although we posted declines in both net sales and EPS in the first quarter, we are pleased to deliver results ahead of our expectations. As we mentioned in our fourth quarter earnings call, we had factored in some uncertainty given the unfavorable category and consumption trends we began seeing in March and April. May sales ended up better than we had expected with the driver being our estimation of how and when moderating consumer demand would impact results. This was also impacted by the fact that despite softening POS, some customers continue to place additional orders ahead of announced price increases.

謝謝你，朱利安。大家，早安。我想先討論我們第一季的業績。儘管我們第一季的淨銷售額和每股盈餘均有所下降，但我們很高興交付的結果超出了我們的預期。正如我們在第四季度財報電話會議中提到的，鑑於 3 月和 4 月開始看到的不利類別和消費趨勢，我們考慮了一些不確定性。 5 月的銷售結果優於我們的預期，其驅動因素是我們對消費者需求放緩將如何以及何時影響結果的估計。這也受到以下事實的影響：儘管 POS 疲軟，但一些客戶在宣布漲價之前仍繼續下額外訂單。

Factoring in trends from consumer buying patterns and inflation, we now anticipate softer category and consumption trends to have a more significant impact on our results for the balance of the fiscal year. I will provide more detail later on this as well as other factors affecting our revised fiscal year outlook later.

考慮到消費者購買模式和通貨膨脹的趨勢，我們現在預期疲軟的品類和消費趨勢將對我們本財年剩餘的業績產生更重大的影響。我稍後將提供更多詳細資訊以及其他影響我們修訂後的財政年度前景的因素。

Looking at the results for the quarter. We faced a tough comparison to the first quarter of fiscal '22 when we achieved consolidated net sales growth of 28.6% and adjusted diluted EPS growth of 37.5%, driven by strong demand in the Beauty and Home and Outdoor segments.

看看本季的結果。與22 財年第一季相比，我們面臨嚴峻的挑戰，當時，在美容、家居和戶外領域的強勁需求推動下，我們實現了28.6% 的綜合淨銷售額增長和37.5% 的調整後攤薄每股收益成長。

For the first quarter of fiscal '23, our consolidated net sales declined 6.1%, driven by a decline of $20.1 million related to the sale of the Personal Care business in fiscal '22, the unfavorable comparative impacts of approximately $20 million from retailers that accelerated orders into the fourth quarter of fiscal '22 and approximately $15 million from orders that were not able to be shipped at the end of fiscal '21 due to the impact of Winter Storm Uri.

在23 財年第一季度，我們的綜合淨銷售額下降了6.1%，這是由於與22 財年個人護理業務銷售相關的2,010 萬美元下降所致，零售商加速了約2,000 萬美元的不利相對影響。到 22 財年第四季度的訂單以及由於冬季風暴 Uri 的影響而無法在 21 財年末發貨的訂單中約有 1500 萬美元。

Additionally, we saw a decrease in net sales in the Health & Wellness segment primarily as a result of stronger COVID-driven demand for health care products in the prior year period. Also contributing to the decline were lower sales in the Beauty segment hair appliance category and home-related categories in the Home & Outdoor segment due to lower consumer demand and shifts in consumer spending patterns. These factors were partially offset by growth from the acquisitions of Osprey and Curlsmith which performed in line with our expectations.

此外，我們看到健康與保健領域的淨銷售額下降，主要是由於上一年期間新冠疫情驅動的醫療保健產品需求強勁。由於消費者需求下降和消費者支出模式的轉變，美容美髮器具類別以及家居和戶外類別中的家居相關類別的銷售額下降也是造成下降的原因。這些因素被收購 Osprey 和 Curlsmith 的成長部分抵消，收購的表現符合我們的預期。

Even with the consolidated net sales decline of 6.1% posted in the first quarter, we grew 20.7% over fiscal '21 and 35% over fiscal '20. GAAP consolidated operating income was $33.9 million or 6.7% of net sales. On an adjusted basis, operating margin decreased 3.9 percentage points to 13.6%, primarily driven by unfavorable operating leverage, higher marketing expense, the unfavorable impact of lower Beauty segment sales within consolidated net sales revenue and the net dilutive impact of inflationary costs and related customer price increases.

儘管第一季的綜合淨銷售額下降了 6.1%，但我們比 21 財年增長了 20.7%，比 20 財年增長了 35%。 GAAP 合併營業收入為 3,390 萬美元，佔淨銷售額的 6.7%。調整後的營業利潤率下降3.9 個百分點，至13.6%，主要是由於不利的營業槓桿、行銷費用增加、綜合淨銷售收入中美容業務銷售額下降的不利影響以及通貨膨脹成本和相關客戶的淨攤薄影響價格上漲。

Adjusted operating margin was down in all segments for the quarter with the most significant decline in Health & Wellness, reflecting the unfavorable impacts of operating leverage and product mix. While we still expect a decline in adjusted operating margin for the full year in the Health & Wellness segment, we believe the initiatives included in Project Delta will help to improve both short- and long-term profitability of the segment.

本季所有細分市場的調整後營業利潤率均出現下降，其中健康與保健領域下降最為顯著，反映出營運槓桿和產品組合的不利影響。雖然我們仍然預期健康與保健部門全年調整後營業利潤率將會下降，但我們相信 Delta 專案中包含的舉措將有助於提高該部門的短期和長期獲利能力。

Net income was $24.6 million or $1.02 per diluted share. Non-GAAP core adjusted diluted EPS decreased to $2.41 primarily due to an operating loss in the Health & Wellness segment, lower adjusted operating income in the Beauty segment and higher interest expense.

淨利潤為 2,460 萬美元，即稀釋後每股收益 1.02 美元。非 GAAP 核心調整後稀釋每股收益下降至 2.41 美元，主要是由於健康與保健部門的營運虧損、美容部門調整後的營運收入下降以及利息支出增加。

We ended the quarter with total debt of $1.1 billion, an increase of $292 million from the end of fiscal '22, reflecting cash used in the quarter for the acquisition of Curlsmith of $150 million, capital asset expenditures related to our new distribution center of $70 million and cash used for inventory of $48 million. Our net leverage ratio was 2.85x at the end of the first quarter.

本季結束時，我們的總債務為11 億美元，比22 財年末增加了2.92 億美元，反映出本季用於收購Curlsmith 的現金為1.5 億美元，與我們的新配送中心相關的資本資產支出為70 美元和用於庫存的現金 4800 萬美元。第一季末我們的淨槓桿率為 2.85 倍。

On June 28, 2022, we entered into an amendment to our credit agreement to, among other things, replace LIBOR with term SOFR as the reference interest rate. We also exercised the accordion under the credit agreement and borrowed $250 million as term loans and provided notice relating to a qualified acquisition, which triggered temporary adjustments to the maximum leverage ratio. The proceeds from the term loans were used to repay revolving loans under the credit agreement. We may prepay the term loans in whole or in part at any time without premium or penalty.

2022 年 6 月 28 日，我們對信貸協議進行了修訂，其中包括以 SOFR 期限取代 LIBOR 作為參考利率。我們還根據信貸協議行使了手風琴的作用，借入了2.5億美元作為定期貸款，並提供了有關合格收購的通知，這引發了對最高槓桿率的臨時調整。定期貸款的收益用於償還信貸協議項下的循環貸款。我們可以隨時提前償還全部或部分定期貸款，無需支付溢價或罰款。

After giving effect to the term loan borrowings and application of those loans to repay revolving borrowings at May 31, 2022, the remaining amount available for revolving borrowings under our credit agreement would have been $373.8 million. On a short-term basis, this transaction will provide flexibility while we navigate higher leverage associated with recent acquisitions, investments in the construction of our new distribution center and uncertainty in consumer spending behavior.

在 2022 年 5 月 31 日實施定期貸款借款並使用這些貸款償還循環借款後，我們的信貸協議下可用於循環借款的剩餘金額將為 3.738 億美元。從短期來看，這項交易將提供靈活性，同時我們可以利用與最近的收購、新配送中心建設投資以及消費者支出行為的不確定性相關的更高槓桿率。

On a longer-term basis, once we return to lower debt and leverage levels, the accordion allows for additional capacity for long-term accretive capital deployment opportunities.

從長遠來看，一旦我們回到較低的債務和槓桿水平，手風琴就會為長期增值的資本部署機會提供額外的能力。

Now turning to our revised outlook for the fiscal year. Our full year outlook for fiscal '23 has been materially impacted by changes in the macroeconomic and market trends. Our outlook for net sales revenue is declining primarily due to changes in consumer behavior and spending patterns, higher levels of inventory at retailers, ongoing supply chain disruptions and the unfavorable impact of foreign exchange rates.

現在轉向我們修改後的本財年前景。我們對 23 財年的全年展望受到宏觀經濟和市場趨勢變化的重大影響。我們對淨銷售收入的展望正在下降，主要是由於消費者行為和支出模式的變化、零售商庫存水準的提高、持續的供應鏈中斷以及外匯匯率的不利影響。

In addition to the sales volume decline, our adjusted diluted EPS outlook is being unfavorably impacted by lower adjusted operating margins, higher interest expense due to increases in forecasted interest rates related to recent Fed activity and a higher expected effective income tax rate. For fiscal '23, we now expect consolidated net sales revenue in the range of $2.15 billion to $2.2 billion, which implies a consolidated decline of 3.3% to 1.0% and a core decline of 1.8% to growth of 0.5%. We are pleased that our previous sales expectations for both Osprey and Curlsmith remain intact in our revised outlook.

除了銷售下降之外，我們調整後的稀釋後每股收益前景還受到調整後營業利潤率下降、由於與近期聯準會活動相關的預測利率上升而導致的利息支出上升以及預期有效所得稅率上升等因素的不利影響。對於 23 財年，我們目前預計綜合淨銷售收入將在 21.5 億美元至 22 億美元之間，這意味著綜合下降 3.3% 至 1.0%，核心下降 1.8%，成長 0.5%。我們很高興我們之前對 Osprey 和 Curlsmith 的銷售預期在我們修訂後的前景中保持不變。

By segment, we have the following net sales expectations. Home & Outdoor growth of 9% to 11%, including net sales from Osprey of $180 million to $185 million; Health & Wellness decline of 10% to 8%; and a Beauty core business decline of 7% to 5%, including net sales from Curlsmith of $30 million to $35 million for the 10-month period of ownership in fiscal '23.

按細分市場，我們有以下淨銷售額預期。家居和戶外成長 9% 至 11%，其中 Osprey 的淨銷售額為 1.8 億美元至 1.85 億美元；健康與保健下降 10% 至 8%；美容核心業務下降了 7% 至 5%，其中包括 Curlsmith 在 2023 財年 10 個月所有權期間的淨銷售額為 3,000 萬美元至 3,500 萬美元。

We now expect consolidated GAAP diluted EPS of $6.51 to $7.11 and consolidated non-GAAP adjusted diluted EPS in the range of $9.85 to $10.35, which implies a consolidated decline of 20.3% to 16.3% and a core decline of 19.2% to 15.1%. This includes an adjusted diluted EPS contribution from Osprey of approximately $0.40 to $0.45 and a pro rata fiscal '23 contribution from Curlsmith of approximately $0.15 to $0.20. The decline in EPS contributions for both acquisitions versus our previous outlook primarily reflects the impact of higher interest expense due to our updated assumption of 350 basis points of interest rate increases in calendar year '22.

我們現在預計綜合GA​​AP 攤薄後每股收益為6.51 至7.11 美元，綜合非GAAP 調整後稀釋後每股收益為9.85 至10.35 美元，這意味著綜合下降20.3% 至16.3%，核心下降19.2% 至15.1% 。這包括 Osprey 調整後的攤薄每股收益貢獻約 0.40 美元至 0.45 美元，以及 Curlsmith 的比例 23 財年貢獻約 0.15 美元至 0.20 美元。與我們先前的預期相比，這兩項收購的每股盈餘貢獻下降，主要反映了由於我們更新的 22 日曆年利率上漲 350 個基點的假設而導致利息支出增加的影響。

Although we have implemented cost control measures and are moving forward with further efficiency programs, we expect adjusted operating margin to decline 80 to 100 basis points in fiscal '23. This expectation is driven primarily by an anticipated decrease in operating leverage, the net dilutive effect of inflationary price increases and an unfavorable product mix in the Health & Wellness segment.

儘管我們已經實施了成本控制措施並正在推進進一步的效率計劃，但我們預計 23 財年調整後的營業利潤率將下降 80 至 100 個基點。這一預期主要是由於經營槓桿預期下降、通膨價格上漲的淨稀釋效應以及健康與保健領域不利的產品組合所推動的。

As Julien mentioned, we are putting in place both global and health and wellness specific initiatives to reduce costs and improve efficiency in order for us to finish Phase 2 strong and set us up for further long-term value creation. We have already begun to put in place some actions that will benefit fiscal '23, and we are working on further actions that we expect will have a more significant financial impact on fiscal '24.

正如 Julien 所提到的，我們正在實施全球和健康方面的具體舉措，以降低成本並提高效率，以便我們能夠強勁地完成第二階段，並為進一步創造長期價值做好準備。我們已經開始採取一些有利於 23 財年的行動，我們正在採取進一步行動，預計將對 24 財年產生更重大的財務影響。

Our outlook includes an estimated after-tax impact of incremental inflationary costs of approximately $60 million to $65 million or approximately $2.50 to $2.70 of adjusted diluted EPS. Through the execution of our playbook, we continue to believe we can mitigate the majority of these costs. We have contracted all our expected shipping needs for the fiscal year which creates visibility on sea freight costs at rates that are at considerable discount to current spot rates. We are also continuing to implement the in-flight productivity and COGS savings initiatives planned with our suppliers.

我們的展望包括增量通膨成本約 6,000 萬至 6,500 萬美元或約 2.50 至 2.70 美元調整後攤薄每股收益的估計稅後影響。透過執行我們的行動手冊，我們仍然相信我們可以減輕其中大部分成本。我們已經簽訂了本財年所有預期的運輸需求合同，這使得海運成本的可見性比當前即期運費有相當大的折扣。我們也將繼續實施與供應商計畫的機上生產力和銷貨成本節約計畫。

Finally, we have implemented our price increases across our customer base in a considered manner that take into account key consumer price points and competitive activity. Our outlook includes an increase in expected interest expense with a new range of $45 million to $47 million, primarily driven by our revised assumption that the Fed will increase interest rates at 350 basis points in calendar year '22.

最後，我們在考慮到主要消費者價格點和競爭活動的情況下，以深思熟慮的方式在我們的客戶群中實施了漲價。我們的展望包括預期利息支出增加至 4,500 萬美元至 4,700 萬美元的新範圍，這主要是由於我們修改後的假設，即聯準會將在 22 日曆年升息 350 個基點。

As we mentioned in our call in April, due to the recent acquisitions and investments in our new distribution center in the first half of fiscal '23, we continue to expect higher average debt balances and increasing leverage ratios during the first half of our fiscal year with debt levels and leverage ratios improving sequentially in the second half of our fiscal year.

正如我們在4 月的電話會議中提到的，由於最近在23 財年上半年對我們的新配送中心進行了收購和投資，我們繼續預計我們財年上半年的平均債務餘額會更高，槓桿率也會增加我們財年下半年的債務水準和槓桿率連續改善。

Due to the assumptions of the impact of changing consumer demand and related higher levels of retail inventory reflected in our net sales outlook, we are working to strategically adjust our inventory purchasing trends to match our new expectation of retail and consumer demand. However, due to the fact that COVID-related supply chain disruptions have extended purchasing lead times, we expect that it will be more difficult to reduce our inventory levels at the same pace as previously anticipated. We, therefore, believe that we will end fiscal '23 with a leverage ratio in the range of 2.5x to 3x.

由於我們的淨銷售前景反映了消費者需求變化的影響以及相關零售庫存水準上升的假設，我們正在努力策略性地調整我們的庫存採購趨勢，以符合我們對零售和消費者需求的新預期。然而，由於與新冠病毒相關的供應鏈中斷延長了採購週期，我們預計以先前預期的速度降低庫存水準將會更加困難。因此，我們相信 23 財年結束時槓桿率將在 2.5 倍至 3 倍之間。

As Julien mentioned, over time, we intend to strategically decrease our inventory levels through thoughtful purchase order management. We will continue to plan and navigate through the expected supply chain challenges that are resulting in longer lead times, instances of component delivery delays and higher material prices. We are balancing these supply chain challenges with the shifts in consumer buying behavior and expected retailer reorder patterns. We believe that we have the talent and capabilities to serve retailers and consumers through this unusual period.

正如 Julien 所提到的，隨著時間的推移，我們打算透過周到的採購訂單管理來策略性地降低庫存水準。我們將繼續規劃和應對預期的供應鏈挑戰，這些挑戰將導致交貨時間延長、零件交付延遲和材料價格上漲。我們正在平衡這些供應鏈挑戰與消費者購買行為的變化和預期的零售商重新訂購模式。我們相信，我們有能力在這個不尋常的時期為零售商和消費者提供服務。

We now expect a fiscal '23 GAAP effective tax rate of 15.5% to 16.5% and an adjusted effective tax rate of 12.6% to 13.6%, primarily driven by lower expected pretax income. Due to the current highly dynamic market conditions and unique factors affecting the comparability to the prior year base, we are providing additional quarterly context for our current expectations of the net sales revenue and adjusted diluted EPS outlooks.

我們目前預計 23 財年 GAAP 有效稅率為 15.5% 至 16.5%，調整後有效稅率為 12.6% 至 13.6%，主要是由於預期稅前收入較低。由於當前高度動態的市場狀況以及影響與上年基數可比性的獨特因素，我們為當前對淨銷售收入和調整後稀釋每股收益前景的預期提供了額外的季度背景。

With regard to quarterly cadence of the consolidated net sales outlook for the fiscal year, we now expect low double-digit growth in the second quarter due to the second quarter of fiscal '22, having the largest adverse impact from the EPA matter, approximately flat sales growth in the third quarter and a low double-digit sales decline in the fourth quarter due to the high base of the fourth quarter of fiscal '22.

關於本財年綜合淨銷售前景的季度節奏，我們現在預計第二季度將出現兩位數的低增長，因為 22 財年第二季度受到 EPA 事件的最大不利影響，大致持平由於22 財年第四季度的基數較高，第三季的銷售額有所成長，第四季的銷售額出現兩位數的低降幅。

With regard to the quarterly cadence of consolidated adjusted diluted EPS outlook for the fiscal year, we now expect a mid-teen decline in the second quarter primarily due to lower adjusted operating margin and higher interest expense, a low double-digit decline in the third quarter primarily due to higher interest expense and higher adjusted effective tax rate and a mid-single-digit decline in the fourth quarter, primarily due to lower net sales, higher interest expense and a higher adjusted effective tax rate.

關於本財年綜合調整後攤薄每股收益前景的季度節奏，我們現在預計第二季將出現中位數下降，主要是由於調整後營業利潤率較低和利息支出較高，第三季將出現兩位數的低降幅第四季的下降主要是由於利息支出增加和調整後有效稅率上升，而第四季度出現中個位數下降，這主要是由於淨銷售額下降、利息支出上升和調整後有效稅率上升。

The current uncertainty of dynamic macroeconomic and consumer conditions has had a significant impact on our fiscal '23 outlook. We currently are working on plans to return to growth in fiscal '24 and believe that the strength of our brands, our ability to execute in the face of challenges and benefits of the new global efficiency initiatives we expect to implement will help us drive towards this outcome.

當前宏觀經濟和消費者狀況的不確定性對我們的 23 財年前景產生了重大影響。我們目前正在製定在 24 財年恢復成長的計劃，並相信我們品牌的實力、我們面對挑戰的執行能力以及我們預計實施的新的全球效率舉措的好處將幫助我們實現這一目標結果。

As the rest of the fiscal year plays out, we will have a better view of our expectations for fiscal '24. However, given our expectations for fiscal '23, we do not believe we will be in a position to achieve our previously stated objective of average annual organic growth rate of 3% for net sales and 8% for adjusted diluted EPS over the last 2 years of Phase 2.

隨著本財年剩餘時間的結束，我們將對 24 財年的預期有更好的看法。然而，考慮到我們對 23 財年的預期，我們認為我們無法實現先前提出的目標，即過去 2 年淨銷售額年均有機增長率為 3%，調整後攤薄每股收益為 8%第2 階段。

In conclusion, I am proud of how our teams are navigating a rapidly changing environment by focusing on serving our customers and consumers while proactively identifying and acting on opportunities to reduce costs and increase efficiency. We will continue to balance the short-term top line and earnings pressure against investing in our most important transformation initiatives that feed our flywheel and drive long-term shareholder value.

總而言之，我對我們的團隊如何在快速變化的環境中專注於服務我們的客戶和消費者，同時主動識別並抓住機會以降低成本和提高效率感到自豪。我們將繼續平衡短期收入和獲利壓力與投資於​​我們最重要的轉型計劃，這些計劃為我們的飛輪提供動力並推動長期股東價值。

And with that, I would like to turn it back to the operator for questions.

就這樣，我想把它轉回給接線生詢問問題。

(Operator Instructions) Our first questions come from the line of Bob Labick with CJS Securities.

（操作員說明）我們的第一個問題來自 CJS 證券的 Bob Labick。

That was a lot of information. Thank you very much for all that. Just wanted to start, maybe we could dig a little further into the inventory situation at your customers. Can you give us a sense of kind of your visibility there? And maybe how much of their shift in ordering? I know this might be hard to distinguish, but how much of their shift in ordering is due to the fact that maybe they overordered thinking they couldn't get what they needed because of the supply chain or they already had too much inventory versus how much of a shift in their ordering relates to lower expectations for consumer takeaway and demand?

這是很多資訊。非常感謝您所做的一切。只是想開始，也許我們可以進一步深入了解您客戶的庫存情況。您能為我們介紹一下您在那裡的知名度嗎？也許他們的排序有多少變化？我知道這可能很難區分，但他們的訂購變化有多少是因為他們可能過度訂購，認為由於供應鏈的原因他們無法獲得所需的東西，或者他們已經有太多的庫存與多少他們訂購的轉變是否與消費者外送和需求的預期降低有關？

Good morning Bob. Thanks. And nice to hear from you and also hello to everyone. On the question, yes, we were as surprised as I think the customers themselves were about the amount of change in the consumer buying patterns. So as they themselves said in their own press releases in May, and June that those changes led to the overinventory situation that they're working on now.

早安，鮑伯。謝謝。很高興收到你的來信，也向大家問好。關於這個問題，是的，我們對消費者購買模式的巨大變化感到驚訝，就像我認為客戶本身對消費者購買模式的變化感到驚訝一樣。正如他們自己在五月和六月的新聞稿中所說，這些變化導致了他們現在正在處理的庫存過剩情況。

So in terms of the change itself, we're largely reflecting its impact on our business. As we look on the visibility that we have, which is pretty good with the big customers, we see that their choices in our Q4 were to take on more inventory. Some of that was replenishment of the strong POS that you heard us talk about quite a lot in the fourth quarter call that we made in April, and some of it was forward buying against the remainder of our price increases.

因此，就變革本身而言，我們在很大程度上反映了它對我們業務的影響。當我們看到我們擁有的可見性時，這對大客戶來說非常好，我們看到他們在第四季度的選擇是增加庫存。其中一些是對強大 POS 的補充，您在 4 月份進行的第四季度電話會議中聽到我們多次談論這一點，其中一些是針對我們剩餘的價格上漲而進行的遠期購買。

As the demand shifted in their own forecast, they then got a realization that they wanted to reduce their inventory. Those actions now are showing up in those shifts in orders. I can't say how much of it was them attempting to secure the inventory based on potential supply chain interruptions and I say that because our track record in that area has been very good. We have been able to deliver nearly all of our products because we ourselves have taken on more inventory during the pandemic. Now that we ourselves are reducing ours and they're reducing theirs, it will lead for an opportunity to renormalize for both, and it will be for the benefit of all over time. It's just painful on the path from here to there.

隨著需求變化，他們意識到自己想要減少庫存。這些行動現在體現在訂單的變化中。我不能說他們在多大程度上試圖根據潛在的供應鏈中斷來確保庫存，我這麼說是因為我們在該領域的記錄非常好。我們能夠交付幾乎所有產品，因為我們自己在大流行期間擁有更多庫存。現在我們自己正在減少我們的，他們也在減少他們的，這將為雙方帶來重新正常化的機會，隨著時間的推移，這將造福所有人。只是從這裡到那裡的路上很痛苦。

Got it. Okay. And then another broad question. Just I don't know if you've spoken to this before, if you can speak to this right now, but can you give us a sense over the course of the pandemic, I guess, how much have you taken price or how much of the -- how much is the price of the goods being sold -- your goods being sold gone up due to the inflationary macro environment? And is there -- has there been a destruction in demand as a result of that? And how do you think about pricing going forward?

知道了。好的。然後是另一個廣泛的問題。只是我不知道你以前是否談過這個問題，你現在是否可以談這個問題，但是你能否讓我們了解一下大流行的過程，我想，你接受了多少價格或多少由於通貨膨脹的宏觀環境，您所售商品的價格上漲了多少？是否因此導致需求下降？您如何看待未來的定價？

Yes, it's a great question. I mean demand elasticity is probably on the minds of almost any industry in the world right now, even on commoditized things like gasoline is just a daily headline indicator that everyone sees. And because it's a commodity, there's questions about how much will people adjust their behavior.

是的，這是一個很好的問題。我的意思是，需求彈性可能是目前世界上幾乎所有行業都關注的問題，即使是像汽油這樣的商品化產品也只是每個人都能看到的每日頭條指標。因為它是一種商品，所以人們會在多大程度上調整自己的行為有疑問。

To your question about the amount of increases, while we don't disclose specific numbers, think of mid- to high single digits. So numbers like 5% to 9% in some cases, even like a 10%. But it depends SKU by SKU, product by product, situation by situation. We're super careful on as we look at competitors, we look at our trade, we look at margins, we look at potential substitutes, and we come up with our numbers. So it's less about just to offset the impact of inflation and we use the rest of the playbook, whether it was the elevated inventory of ourselves taking in products ahead of cost increases, whether it was the ability to negotiate the greatly discounted sea freight rates or the other playbook items, and price is a part of it. And so those are the numbers, think, 5% to 10%.

對於你提到的增加金額的問題，雖然我們沒有透露具體數字，但可以考慮中高個位數。因此，在某些情況下，這個數字可能是 5% 到 9%，甚至可能是 10%。但這取決於 SKU 與 SKU、產品與產品、具體情況。當我們審視競爭對手、審視我們的貿易、審視利潤、審視潛在的替代方案並得出我們的數據時，我們會非常小心。因此，這不僅是為了抵消通貨膨脹的影響，我們還利用了策略的其餘部分，無論是我們在成本增加之前購買產品的庫存增加，無論是談判大幅折扣的海運費的能力，還是其他劇本項目，價格是其中的一部分。所以這些數字是 5% 到 10%。

In terms of the demand elasticity, I think everyone is finding out now where that is category by category. As inflation goes higher, it's very clear that in some categories, consumers are making choices on where to spend their money and they're freely spending in some places, think travel-related or experiences as opposed to goods and in certain kinds of goods, especially.

就需求彈性而言，我認為現在每個人都在逐一類別地找出需求彈性。隨著通膨走高，很明顯，在某些類別中，消費者正在選擇在哪裡花錢，他們在某些地方自由消費，認為與旅行相關或體驗相關，而不是商品和某些種類的商品，尤其。

And in the case of which goods within the categories that we trade in, our brands are winners. Our products are winners, consumers know it. They see value, and we're reinforcing that value in the marketplace. That said, there's also some consumers that are just choosing to trade down because they just have less money in their pocket based on the real income after the inflation takes a bite out of their nominal salary increases.

就我們所交易的類別中的哪些商品而言，我們的品牌是贏家。我們的產品是贏家，消費者都知道這一點。他們看到了價值，而我們正在市場上強化這種價值。也就是說，也有一些消費者只是選擇降價，因為在通貨膨脹影響了名目薪資成長後，根據實際收入，他們口袋裡的錢減少了。

Got it. Okay. Great. And then just -- I'm sorry, one last clarification on comments on Helen of Troy's inventory, specifically inventory levels. And I think Matt added a little more color at the end. But could you just maybe summarize -- I believe you said the expectations and intention is to lower your inventory -- absolute inventory levels, now that we're 2 years through the pandemic and supply chains normalized a little bit and all that kind of stuff. But at the same time, it will be harder to do that in the time period which you thought you would do it. So just trying -- talk through that, please.

知道了。好的。偉大的。然後 - 抱歉，最後對海倫特洛伊庫存的評論進行澄清，特別是庫存水平。我認為馬特最後添加了更多色彩。但你能否總結一下——我相信你說過期望和意圖是降低你的庫存——絕對庫存水平，現在我們已經經歷了大流行兩年了，供應鏈稍微正常化了，諸如此類的事情。但同時，在你認為你會做的時間段內，做到這一點會變得更加困難。所以我只是在嘗試——請談談這個問題。

Yes. No problem. I'll say a little. Matt may want to say more here. It worked for us. That playbook move of taking on higher inventories during the pandemic was a winner. I spoke to it in the prepared remarks, and you heard those. So I'm very glad that we did this. As we normalize a bit more and as the demand equation changes, the customer situation changes, it's right, it's right to reduce ours now. The slowness is simply because the demand or the sell-out will be a little slower. There's just less demand in certain categories and the customers have more inventory. So between what's in certain retailers and the pull-through rate that they were surprised at, I mean that it will just flow through slower. It will take longer to reduce to the levels that we're now targeting, which think of it normalized to use the word you used before that's a good thought in terms of number of turns and the healthy levels on the seasonal stuff.

是的。沒問題。我就說一點吧。馬特可能想在這裡說更多。它對我們有用。在大流行期間增加庫存的策略是成功的。我在準備好的發言中談到了這一點，你們也聽到了。所以我很高興我們這麼做了。隨著我們更加規範化，隨著需求方程式的變化，客戶情況的變化，現在減少我們的需求是正確的。緩慢只是因為需求或銷售速度會比較慢。只是某些類別的需求減少，而客戶的庫存增加。因此，在某些零售商的庫存和他們感到驚訝的拉動率之間，我的意思是它的流動速度會更慢。降低到我們現在的目標水平需要更長的時間，考慮到使用您之前使用過的單字進行標準化，就輪數和季節性物質的健康水平而言，這是一個好主意。

We're also being very careful to load in certain components that are just hard to secure. So when we make those deals for subcomponents through our suppliers or through their suppliers, we're not shy about bringing the right amount of componentry in, in order to avoid some of the stuff you read about in the newspaper where certain materials, certain semiconductors, et cetera, are just hard to find or very expensive, it's important to us to have certainty and we're willing to slow down our inventory reduction in order to prioritize securing the right stuff. That helps a ton. It helps with out-of-stock issues that kill consumer-centric companies because you want consumers to have access to the product. It hurts with customers from a retailer standpoint, and it hurts for market share if the product is not there.

我們也非常小心地加載某些難以保護的組件。因此，當我們透過我們的供應商或其供應商進行子組件交易時，我們並不羞於引入適量的組件，以避免出現您在報紙上讀到的某些材料、某些半導體的情況。等等等等，只是很難找到或非常昂貴，對我們來說，確定性很重要，我們願意放慢庫存減少速度，以便優先確保正確的東西。這有很大幫助。它有助於解決缺貨問題，這些問題會扼殺以消費者為中心的公司，因為你希望消費者能夠獲得產品。從零售商的角度來看，這會傷害顧客，如果產品不存在，也會傷害市場佔有率。

So I'd rather go a little slower than to take a -- I don't want to call it a hatchet based approach, we're not in that kind of crisis. That said, we want our cash freed up. Everyone on this call wants the cash flow. And as I said in our prepared remarks, we're keenly aware of the need to review costs and pull our efficiencies either forward for things that we have future planned or things that we can just do faster right now and then start some new projects on increased efficiencies to attack the cost side while we work on all the new products and the rest that feeds into the demand recovery that will naturally make the inventory rotate at the right number of terms.

因此，我寧願放慢一點，也不願採取一種——我不想稱其為「刀鋒相向」的方法，我們並沒有陷入那種危機。也就是說，我們希望釋放我們的現金。這次通話中的每個人都想要現金流。正如我在準備好的演講中所說，我們敏銳地意識到需要審查成本並提高我們的效率，無論是我們未來計劃的事情還是我們現在可以更快地做的事情，然後啟動一些新項目在我們在開發所有新產品和其他產品的同時，提高效率來降低成本，這將有助於需求恢復，這自然會使庫存以正確的週期數輪換。

Yes. And I would just add to that, that as you look at the year and how this is playing out, you've got this very sharp decrease in customer demand and retailer inventory levels are high. Meanwhile, because of what's happened from -- in COVID and supply chain disruption, you have longer than -- longer lead times than you used to have in the past, sometimes 6 to 9 months. So you've got this tipping point where demand has fallen off sharply, but you have a long lead time of inventory purchases that are either being produced or on the water to you.

是的。我想補充一點，當你看看這一年及其進展時，你會發現客戶需求急劇下降，零售商庫存水準很高。同時，由於新冠肺炎疫情和供應鏈中斷，交貨時間比過去更長，有時需要 6 到 9 個月。因此，您已經遇到了需求急劇下降的轉折點，但您的庫存採購的交付週期很長，這些庫存要么是在生產中，要么是在水上。

So in order for us to be able to kind of reshift to our inventory to the forward demand that we're seeing now, it's going to take some time for us to go in and sort of smooth out that inventory pattern. So what I would expect, Bob, in terms of just the year and how to think about our inventory levels, probably going to go up from where we are now in Q2 and then sequentially come down in Q3 and Q4, and we'd love to target getting down to where we were by the end of the year this year, somewhere where we were close to last year where we finished, but a lot of that is going to be dependent in the next few months and how fast we can adjust what's already in the order pattern.

因此，為了使我們能夠將庫存重新調整到我們現在看到的遠期需求，我們需要一些時間來平滑庫存模式。所以，鮑勃，我所期望的是，就今年以及如何考慮我們的庫存水平而言，可能會從我們現在第二季度的水平上升，然後在第三季度和第四季度依次下降，我們希望目標是在今年年底前達到我們的目標，接近去年的目標，但這很大程度上取決於接下來的幾個月以及我們調整的速度訂單模式中已有的內容。

Okay. Great. Very helpful. I will get back in queue.

好的。偉大的。很有幫助。我會回到隊列中。

(Operator Instructions) Our next questions come from the line of Rupesh Parikh with Oppenheimer.

（操作員說明）我們的下一個問題來自 Rupesh Parikh 和 Oppenheimer 的線路。

So I want to start with a category question. So which categories are most impacted by some of the inventory issues our retailers are facing and the demand fall off? And then which ones are actually more resilient?

所以我想從一個類別問題開始。那麼哪些品類受零售商面臨的庫存問題和需求下降的影響最大呢？那麼哪些實際上更有彈性呢？

Hi, Rupesh. Starting with the categories and then the resilience, there's a couple things to keep in mind here. First, the health-related stuff is naturally a bit lower because the pandemic is a bit lower. And we've been clear that the pandemic has been directly helpful and health related. So think of thermometers, as an example.

嗨，魯佩什。從類別開始，然後是彈性，這裡有一些事情需要記住。首先，與健康相關的東西自然會低一些，因為大流行的程度較低。我們已經明確表示，這場大流行病直接有益且與健康相關。以溫度計為例。

Our share keeps growing. I think I mentioned in the public call, 16 of the last 20 months, we've grown share in thermometers as just an example for the United States. In the case of the total size of the category, on the other hand, it is coming down. That's one. We believe the air purifier category is coming down a bit. But in the case of air purifiers, still significantly higher than the pre-pandemic levels. So important to keep that in mind.

我們的份額不斷增長。我想我在公開電話會議中提到過，過去 20 個月中有 16 個月，我們的溫度計份額不斷增長，這只是美國的一個例子。另一方面，就該類別的總規模而言，它正在下降。這是一個。我們認為空氣清淨機類別正在略有下降。但就空氣清淨機而言，仍明顯高於大流行前的水平。記住這一點非常重要。

And in the case of other pandemic related, it's hard to tell on humidifiers. We've seen a significant demand for humidifiers. We called it out in Q4. We called it out again today. And in our forward-looking statements today, we said that we are seeing further demand still for humidifiers. So it's one that is defying that trend a bit.

在其他與流行病相關的情況下，加濕器很難判斷。我們已經看到對加濕器的巨大需求。我們在第四季就提出了這一點。今天我們再次呼籲。在我們今天的前瞻性聲明中，我們表示，我們看到加濕器的需求仍然進一步增加。所以它有點違背這一趨勢。

I think what's also happening is other -- this is just an opinion,--other types of sickness, not just COVID are a little bit more prevalent so a normalization of the cold flu cycle, which was so greatly suppressed during the COVID year due to the social isolation. So these are examples of categories that have been affected negatively.

我認為還發生了其他事情——這只是一種觀點——其他類型的疾病，而不僅僅是新冠病毒，更加普遍，因此感冒流感週期正常化，在新冠病毒年份，感冒流感週期受到了極大的抑制。到社會孤立。這些是受到負面影響的類別的例子。

Another surprisingly is Beauty. It has nothing to do with the pandemic. I think it never has. Many people have told us beauty was a COVID play. We've never understood that. People want to look great all the time and not just from the neck up on Zoom, but they want to look and be their best. And we had such a big market share gain in beauty, not just because of the volumizers, but our other innovations, too. And nonetheless, the beauty category itself is down a bit.

另一個令人驚訝的是美麗。這與疫情無關。我認為從來沒有。許多人告訴我們，美麗是一場新冠疫情的戲劇。我們一直不明白這一點。人們希望一直看起來都很棒，不僅僅是在 Zoom 上從脖子以上，而是他們想要看起來最好，並成為最好的自己。我們在美容領域獲得瞭如此巨大的市場份額，不僅是因為豐盈劑，還因為我們的其他創新。儘管如此，美容類別本身還是有所下降。

Our share is flat to up, depending where you look in beauty. So we continue to win, but in a lower overall category. I must say I scratch my head a little bit on why that category itself is a bit down.

我們的份額持平到上升，具體取決於您對美麗的看法。所以我們繼續獲勝，但整體類別較低。我必須說我有點摸不著頭腦，為什麼這個類別本身有點下降。

On the liquids side in beauty on the other hand, it's generally up and up for us. Others like Ulta and others have called that out, Target's called that out in their calls. And up for us because we greatly improved the supply of our liquids and Drybar and there's demand for them. The salons reopened and the products are highly desired. So it just makes a lot of sense.

另一方面，在美容方面，液體方面對我們來說通常是越來越好。 Ulta 等其他公司已經指出了這一點，塔吉特也在他們的電話中指出了這一點。對我們來說，這是因為我們極大地改善了液體和 Drybar 的供應，並且對它們有需求。沙龍重新開業，產品非常受歡迎。所以這很有意義。

So there's a sense of categories. In Housewares, and I don't mean Home & Outdoor. I mean the home -- the housewares part of home, we are seeing some reduction. But again, like the air purifiers, down from a higher base that was pumped up while people were home more and, importantly, significantly above the pre-COVID levels. So back down to just much bigger, not crazy big versus the pre-COVID levels. So I hope you get the sense. In fact, I have the nervousness on this call that people might be thinking that if there is a decline, then it means there's something wrong with the fundamental underlying demand. In some cases, the category is lower, like I just said in COVID-related, but in others like the housewares related products or the beauty-related products, down from elevated bases, but up from the pre-COVID levels. We went as far as to point that out in literally the very first headline of our press release on revenue. We also put a table of not just 2-year stack, but 3-year stack in our press release to further emphasize the point. And in my quote, in that same press release, we gave you 4-year perspective to show that the company is up roughly 50% over that period of time, including the flat outlook that we plan today. So I hope people digest that as they consider the reductions from the growth on top of the elevated base that we just put down last year, which was growth from the elevated base of the year before.

所以有一種類別感。在家庭用品中，我指的不是家庭和戶外。我指的是家居——家居用品的一部分，我們看到了一些減少。但同樣，就像空氣清淨機一樣，當人們更待在家裡時，它的基礎值會更高，而且重要的是，顯著高於新冠疫情前的水平。因此，與新冠疫情爆發前的水平相比，回到更大的水平，而不是瘋狂的大。所以我希望你能明白。事實上，我對這次電話會議感到緊張，因為人們可能會認為，如果出現下降，這意味著基本需求出現了問題。在某些情況下，該類別較低，就像我剛才在與新冠病毒相關的產品中所說的那樣，但在其他產品中，例如家居用品相關產品或美容相關產品，其基數有所下降，但較新冠病毒爆發前的水平有所上升。我們甚至在收入新聞稿的第一個標題中就指出了這一點。我們還在新聞稿中不僅列出了 2 年堆棧，還列出了 3 年堆棧，以進一步強調這一點。在我的引言中，在同一份新聞稿中，我們向您提供了 4 年的前景，表明該公司在這段時間內上漲了大約 50%，包括我們今天計劃的持平前景。因此，我希望人們在考慮我們去年剛剛確定的高基數（即前一年高基數的增長）基礎上增長的減少時消化這一點。

And then, I guess, Hydro Flask, you didn't cover that one. Just any thoughts there on the resiliency of Hydro Flask?

然後，我猜，Hydro Flask，你沒有涵蓋這一點。對 Hydro Flask 的彈性有什麼想法嗎？

Yes. Sorry about the resiliency. Yes, the answer is strong, yes. Hydro Flask is crushing it. Hydro Flask is gaining share, gaining share over the last 52 weeks. The category is growing. People are returning to in-person schooling, although the school year happens to be out right now, but not during the quarter. The quarter that we just had was a school period of time. It's summer time now, people are big on all kinds of activities. Outdoor is big. Experiences are big. Osprey is doing well as a result, same story. And then the category itself is just up. So if the category is up and we're up more, that's where the share gain comes and the resiliency is terrific. We heard stories during the pandemic of how Hydro Flask got hurt so bad. We demonstrated in our calls that, that was not the case. It did much better than people suspected and now it's doing better still as the category grows and we grow share in it. So strong go on outdoors, and it's not just Hydro Flask, it's other on-trend products, including Osprey.

是的。抱歉，關於彈性。是的，答案很強烈，是的。 Hydro Flask 正在粉碎它。 Hydro Flask 的市佔率正在增加，在過去 52 週內不斷增加。該類別正在不斷增長。人們正在重返面對面的學校教育，儘管學年恰好現在結束，但不是在本季。我們剛剛度過的季度是上學時間。現在正值夏季，人們都熱衷於各種活動。室外很大。經驗是巨大的。結果，魚鷹表現良好，同樣的故事。然後這個類別本身就上升了。因此，如果該類別上漲並且我們上漲得更多，那就是份額收益的來源，並且彈性非常好。我們聽說過在大流行期間 Hydro Flask 受到如此嚴重傷害的故事。我們在電話中表明，情況並非如此。它的表現比人們想像的要好得多，現在隨著該類別的增長以及我們在其中的份額的增加，它的表現甚至更好。如此強大的戶外活動，不僅是 Hydro Flask，還有其他流行產品，包括 Osprey。

Great. And my quick follow-up. Is there a way to frame exposure to Bed Bath & Beyond? I don't know if that's something you guys have commented on before.

偉大的。我的快速跟進。有沒有辦法限制床浴及其他環境的暴露？不知道大家之前有沒有評論過這個問題。

Yes, we haven't actually. Their news is new since we last were in our open window period. So their news is fairly fresh. That said, what's not news is that Bed Bath has struggled for some time. There's been multiple iterations of their work to right their ship. We strongly encourage and support their desire to re-swing the pendulum back towards the national brands. They themselves said that they had overswung towards private label and didn't have their assortment right. We've had those conversations with them for some time, and we not only agree, but encourage them to follow through with that and we will help to support that.

是的，我們實際上還沒有。自從我們上次處於開放窗口期以來，他們的消息是新的。所以他們的消息相當新鮮。也就是說，Bed Bath 已經掙扎了一段時間了，這已經不是什麼新聞了。他們的工作進行了多次迭代來糾正他們的錯誤。我們強烈鼓勵並支持他們將鐘擺重新擺回國家品牌的願望。他們自己說，他們已經過度轉向自有品牌，並且沒有自己的品種權。我們已經與他們進行了一段時間的對話，我們不僅同意，而且鼓勵他們堅持到底，我們將幫助支持這一點。

In terms of the exposure, we watch them and any other retailer that is of concern on their financial condition. That unfortunately is certainly the case as they do the hard work to take themselves where they need to be. So we'll keep a close eye. In terms of actual exposure, it's important to note, and we've been pretty clear in our last 6 or 7 calls that we keep earning new distribution for brands like OXO, which historically are very prominent in Bed Bath. We've spoken about Target. We've spoken about the club channel. And then we have spoken about continuing to bring new products into the market through our major retailers and also online and on DTC and through other e-tailers.

就風險敞口而言，我們關注他們以及任何其他對其財務狀況感到擔憂的零售商。不幸的是，情況確實如此，因為他們透過努力工作來實現自己需要的目標。所以我們會密切注意。就實際曝光率而言，值得注意的是，我們在最近的 6 或 7 個電話中已經非常清楚地表明，我們不斷為 OXO 等品牌贏得新的分銷，這些品牌歷來在 Bed Bath 領域非常突出。我們已經談到了塔吉特。我們已經討論過俱樂部頻道。然後我們談到繼續透過我們的主要零售商以及線上、DTC 和其他電子零售商將新產品推向市場。

So when you put all of that together, we've reduced that exposure considerably on the one hand. On the other hand, we're rooting for Bed Bath & Beyond, and we're eager to work with them in the appropriate way, given their financial condition to do exactly what they themselves want to, which is to restore the pendulum where it belongs between national brands and private label.

因此，當你把所有這些放在一起時，我們一方面大大減少了這種風險。另一方面，我們支持 Bed Bath & Beyond，考慮到他們的財務狀況，我們渴望以適當的方式與他們合作，完全按照他們自己的意願去做，即恢復鐘擺的狀態。屬於國家品牌和自有品牌之間。

Our next questions come from the line of Linda Bolton-Weiser with D.A. Davidson.

我們的下一個問題來自 Linda Bolton-Weiser 和 D.A.戴維森。

Yes. Well, I'm interested very much in what you're talking about in terms of the focus on improving the performance in the health and -- Health & Wellness business. Can you just talk about like, I guess, the business that used to be the old [CAS] business, which, of course, you know very well. Is there something that you can do to actually pare down the product lines? Are there certain areas of products that are lower in margin, just structurally, like, I don't know, maybe fans is very low profitability, whereas humidifiers are much better, where you could actually significantly prune SKUs or even exit whole entire product lines. Is that something that you're looking at?

是的。嗯，我對您所談論的重點關注改善健康和健康與保健業務的績效非常感興趣。我想，你能談談以前的 [CAS] 業務嗎？當然，你對此非常了解。您可以做些什麼來實際削減產品線嗎？是否有某些產品領域的利潤率較低，只是在結構上，比如，我不知道，也許風扇的盈利能力非常低，而加濕器要好得多，你實際上可以大幅削減SKU，甚至退出整個產品線。這是你正在看的東西嗎？

Yes, it is. And yes, for the rest on the call, your assessment is just right. It is the old CAS business that's now been reshaped a bit because of all that we've done since that acquisition at the end of 2010. So a lot of time has passed and the Pure acquisition, as an example, the massive expansion in Asia that occurred during the decade of 2010, the big numbers that we spoke about in our international success story during Phase 2 came in part from that international expansion of Health & Wellness. It also came from the international expansion of beauty. So it's come a long way since the CAS days.

是的。是的，對於電話會議的其餘部分，您的評估是正確的。由於自 2010 年底收購以來我們所做的一切，舊的 CAS 業務現在已經進行了一些重塑。所以已經過去了很多時間，例如 Pure 收購，在亞洲的大規模擴張發生在2010 年的十年裡，我們在第二階段的國際成功故事中談到的巨大數字部分來自健康與保健的國際擴張。它也來自美容的國際擴張。自 CAS 時代以來，它已經取得了長足的進步。

In the case of the product lines, yes, we are taking a look at the portfolio for Health & Wellness. We like those categories, and they are on trend. You saw what happened in COVID and that helped a lot. We're now paying the price for some of those categories, like I just mentioned with Rupesh coming down a bit. But importantly, in ones like air purifiers, still well above their pre-COVID highs.

就產品線而言，是的，我們正在研究健康與保健的產品組合。我們喜歡這些類別，而且它們很受歡迎。你看到了新冠疫情中發生的事情，這對你有很大幫助。我們現在正在為其中一些類別付出代價，就像我剛才提到的，Rupesh 的價格有所下降。但重要的是，像空氣清淨機這樣的產品，仍然遠高於新冠疫情前的高點。

Fans is also very much on trend. Who on the call thinks the planet is going to be cooler in the next, I don't know, 10 years? And that said, can we make the kind of money that is appropriate on the margin side? So we'll take a look at, first of all, can we improve the margins despite the cost stuff or is it right to do less to your point.

粉絲也很流行。電話會議中誰認為地球在未來十年（我不知道）會變得更涼爽？也就是說，我們能賺到適合保證金的錢嗎？因此，我們首先要考慮的是，儘管存在成本問題，我們是否可以提高利潤率，或者是否可以根據您的觀點少做一些事情。

Air purifiers, on the other hand, very much on trend. Unfortunately, wildfires are a big deal. Sickness is a big deal. There's a stickiness to the new consumer awareness of airborne illness and the ways to prevent it. There's an institutional aspect, there's so many reasons why that's a good category. Air quality, in general, is one of the big public health threats that there is. And unfortunately, that's getting worse. So big opportunities.

另一方面，空氣清淨機非常流行。不幸的是，野火是一件大事。生病是一件大事。消費者對空氣傳播疾病及其預防方法的新認識具有黏性。有一個制度方面的因素，有很多原因說明它是一個很好的類別。一般來說，空氣品質是重大的公共衛生威脅之一。不幸的是，情況變得更糟。這麼大的機會。

Same story on water quality. So we'll take a good look at each one. And will, as I said, on the call, pick the categories, the countries and the channels where we see the best prospects, and that will be what comes out the other side of Project Delta. And all of that with a leaner organization right now, which we've already started implementing and all of this is designed to fix the growth rate on revenue, margins, very importantly, and market shares.

關於水質的同樣的故事。因此，我們將仔細研究每一項。正如我所說，在電話會議上，我們將選擇我們認為最有前景的類別、國家和管道，這將是 Delta 專案另一面的結果。所有這些都是透過一個更精簡的組織來實現的，我們已經開始實施，所有這些都是為了確定收入、利潤率（非常重要的是）和市場份額的成長率。

Okay. And then as my follow-up, I just wanted to ask about just the nature of the margin composition. I mean, obviously, you're pointing to operating margin being down in FY '23. You used to say that for the year, you thought gross margin could be up. So I'm curious if that outlook has changed. And if you're offsetting the cost inflation, the majority of it, which you say you are, then I guess, what is the root of the operating margin decline? Is it just the lack of the leverage on the SG&A line? Is that the main reason why your operating margin is going to be down so much?

好的。然後作為我的後續行動，我只想問保證金構成的性質。我的意思是，顯然，您指的是 23 財年的營業利潤率下降。您曾經說過，您認為這一年的毛利率可能會上升。所以我很好奇這種觀點是否已經改變。如果你要抵銷成本通膨，你所說的大部分成本通膨，那麼我想，營業利潤率下降的根源是什麼？只是因為 SG&A 線缺乏槓桿作用嗎？這是您的營業利益率大幅下降的主要原因嗎？

Yes. Let me just say a little and I'm going to give the rest of that on the gross margin and the difference in the outlook. But the key message is what you said, which is the deleveraging from a reduction in sales. And importantly, the reduction in sales is related to the retailer adjustments that were announced after our original April call on all the underlying consumer stuff. So there's a deleveraging from the sales that affects the total ability to make the same margins. We are working on taking out costs. You've heard quite a few things in the call. We're happy to elaborate on those as helpful and then Matt might be able to speak to the GM comment and the operating margin trend.

是的。讓我簡單說一下，剩下的部分將介紹毛利率和前景差異。但關鍵的訊息就是你所說的，也就是銷售減少所帶來的去槓桿化。重要的是，銷售額的減少與我們最初四月對所有潛在消費品進行電話會議後宣布的零售商調整有關。因此，銷售的去槓桿化影響了獲得相同利潤的整體能力。我們正在努力削減成本。您在通話中聽到了很多事情。我們很高興詳細說明這些有幫助的內容，然後馬特可能會談論通用汽車的評論和營業利潤率趨勢。

Yes, Linda, so I appreciate the question. I would say you're right in terms of the overall operating margin decline for the year is mainly driven by the deleveraging as well as, as we talked before, there's a net dilutive impact of the price increases on operating margin. That's another one. And then we called out a third factor in my comments today, which is some unfavorable product mix in the Health & Wellness segment. It's -- I would say, from a gross profit perspective, I would think, flattish to last year and most of the margin decline is being driven by the things I talked about.

是的，琳達，所以我很欣賞這個問題。我想說的是，今年整體營業利潤率下降主要是由去槓桿化推動的，而且正如我們之前談到的，價格上漲對營業利潤率產生了淨攤薄影響。那是另一件事。然後我們在今天的評論中指出了第三個因素，即健康與保健領域的一些不利產品組合。我想說的是，從毛利的角度來看，我認為與去年持平，大部分利潤率下降是由我談到的事情造成的。

I'll pass it on to the next person.

我會把它傳遞給下一個。

Our next questions come from the line of Anthony Lebiedzinski with Sidoti.

我們的下一個問題來自 Anthony Lebiedzinski 和 Sidoti 的對話。

So I guess just to follow up as far as your own inventory levels, yes, obviously, you commented on your desire to bring that down. Now as you work through that, I mean, is there any potential risk that you will have to maybe discount some of those products to move that inventory? Or how should we think about that?

所以我想只是跟進你自己的庫存水平，是的，顯然，你評論了你想要降低庫存水平的願望。現在，當您解決這個問題時，我的意思是，是否存在任何潛在風險，您可能必須對其中一些產品進行折扣才能轉移庫存？或者說我們該如何思考這個問題？

Sure. It's not our intention at this time, and it's not what we've seen from retailers. That said, I think most people on the call would agree that the consumer situation is hard to predict. And the reason is because there's an odd thing that people haven't seen before. It's hard to look to history to know when was the last time that the confluence of a global pandemic, high inflation, rising interest rates from 0 as opposed to just rising interest rates to choke off inflation, but importantly, from 0.

當然。這不是我們目前的意圖，也不是我們從零售商看到的。也就是說，我認為大多數參加電話會議的人都會同意消費者狀況很難預測。原因是因為有一種人們以前從未見過的奇怪的事情。回顧歷史很難知道上一次全球大流行、高通膨、利率從 0 上升，而不是僅僅通過上升利率來抑制通膨，但重要的是，從 0 開始同時出現是什麼時候。

And then the huge amount of government stimulus measured in trillions that has put a couple of trillion dollars on consumer balance sheets that they're now spending as they face this situation. So hard to look to history and say, "Oh, yes, we've seen that before". So I can't really tell you that the consumer situation is predictable.

然後，以數萬億計的巨額政府刺激措施已使消費者資產負債表上增加了數萬億美元，而他們在面對這種情況時正在支出這些資金。很難回顧歷史並說：「哦，是的，我們以前見過這種情況」。所以我真的不能告訴你消費者的狀況是可以預測的。

I think our reaction today demonstrates that's not the case. And remember, it was the retailers themselves in May and June, who they themselves said that's not the case. So it's hard to say.

我認為我們今天的反應表明情況並非如此。請記住，五月和六月是零售商自己說情況並非如此。所以很難說。

In terms of what's going to happen with the pricing, it is possible that there will be promotion and deals in the market, but that doesn't necessarily mean that we'll be spending a lot on this. Our focus is more on value reframing and this is the idea of making sure consumers appreciate the value that's built into the excellence of our products. They know this already, but it's especially relevant right now because they just have less money in their pocket for the prices they face, and we want the market share. So that's more the focus than it is on price, price, price.

就定價而言，市場上可能會有促銷和優惠，但這並不一定意味著我們會在這方面花很多錢。我們的重點更放在價值重構上，這是確保消費者欣賞我們卓越產品中所蘊含的價值的想法。他們已經知道這一點，但現在尤其重要，因為他們口袋裡的錢相對於他們面臨的價格來說更少，而我們想要市場份額。因此，人們更關注的是價格、價格、價格。

Got you. Okay. And then in terms of my follow-up here. So you provided information on the U.S. sales versus international and that's definitely helpful. So if we were just to look at organic growth and exclude the recent acquisitions, I just wanted to get a better sense as to how the U.S. demand did versus international?

明白你了。好的。然後就我的後續行動而言。因此，您提供了有關美國銷售與國際銷售的信息，這絕對有幫助。因此，如果我們只是專注於有機成長並排除最近的收購，我只是想更了解美國需求與國際需求的對比？

Yes. A similar story. The international drivers are not that different. We held up a bit better internationally because there's more geographic expansion for us, so we earn new distribution, certain trends like the volumizers in beauty are in a different stage. They're still in the massive expansion as opposed to earning share after having earned the distribution, which is more where the U.S. is or holding the share after having such big results like the 100% plus result that we had in Beauty in the year ago quarter. I'm sure people caught that in the prepared remarks when they look at that minus 12% [core] in beauty sales in the last quarter. People say, "Oh my goodness, double-digit decline". But from a base that was 108%. I think was 103%, up in the year ago. So maybe it puts a little perspective. So the international doesn't face quite that situation and for that reason, held up a little better.

是的。類似的故事。國際司機並沒有那麼不同。我們在國際上表現得更好一些，因為我們有更多的地理擴張，所以我們獲得了新的分銷，某些趨勢，如美容領域的豐盈劑，正處於不同的階段。 They're still in the massive expansion as opposed to earning share after having earned the distribution, which is more where the U.S. is or holding the share after having such big results like the 100% plus result that we had in Beauty in the year ago四分之一.我確信人們在看到上個季度美容產品銷售額負 12%（核心）時在準備好的評論中註意到了這一點。人們說，「天哪，兩位數的下降」。但從 108% 的基礎來看。我認為是 103%，比一年前增加了。所以也許它提出了一些觀點。所以這位國腳並沒有面臨這樣的情況，因此，表現得更好一些。

In terms of the U.S. organic, it's definitely true that we've seen decline. The categories where they are are the same ones I just outlined with Rupesh and his question. And then we're seeing growth in other areas such as Hydro Flask and Curlsmith, of course, which was inorganic. Osprey not only because it's inorganic, but because it's on trend. In fact, if we could get more inventory for Osprey faster, we could just sell more Osprey than even what we forecasted, and we did not reduce our outlook for Osprey as we called out in our prepared remarks.

就美國有機食品而言，我們確實看到了下降。它們所在的類別與我剛剛與 Rupesh 和他的問題概述的類別相同。然後我們看到其他領域的成長，例如 Hydro Flask 和 Curlsmith，當然，這是無機的。魚鷹不僅因為它是無機的，而且因為它很受歡迎。事實上，如果我們能夠更快地獲得更多魚鷹庫存，我們就可以銷售比我們預測更多的魚鷹，而且我們並沒有像我們在準備好的評論中指出的那樣降低對魚鷹的前景。

So hopefully that gives you a little sense of the organic aspect versus the acquisitions. I think the key message, it depends how you're looking at the business. If you're looking from the short term, the numbers are what they are. If you're looking from the multiyear perspective, which I suspect is true for most of the people on the call, hopefully, you see what we do, which is phenomenal brands with huge possibilities that we have a long track record of exploiting. This company has doubled its revenues in the last 9 years, and we have expanded our profits by multiples even with the reduced guidance that we're giving today.

希望這能讓您對有機方面與收購有所了解。我認為關鍵訊息取決於您如何看待業務。如果你從短期來看，數字就是事實。如果你從多年的角度來看，我懷疑這對大多數參加電話會議的人來說都是如此，希望你能看到我們所做的事情，這是具有巨大可能性的非凡品牌，我們擁有長期的開發記錄。這家公司的收入在過去 9 年裡翻了一番，即使我們今天給出的指引有所減少，我們的利潤也成倍增長。

And so if you look at it in the future and say, is that thesis still intact? The answer is not only yes, but strongly so, and it's not just international, it's not just acquisition. It's the underlying leadership brands that are fundamentally appealing. They have a track record of gaining share and they have opportunities both through new products, through geographical expansion, through marketing and through entering new adjacencies that make the story very compelling. All we want to do is pick up some efficiency faster while we invest in enabling that and that will be the magic of Phase 3 once we're ready to go to that period of time.

所以，如果你將來看它並說，那篇論文還完好無損嗎？答案不僅是肯定的，而且是強烈的，而且這不僅僅是國際化，也不僅僅是收購。從根本上講，具有吸引力的是潛在的領導品牌。他們擁有獲得市場份額的記錄，並且透過新產品、地理擴張、行銷以及進入新的鄰域獲得機會，這些都使得故事非常引人注目。我們想要做的就是在投資實現這一目標的同時更快地提高效率，一旦我們準備好進入那個時期，這將是第三階段的魔力。

Definitely very helpful and best of luck going forward.

絕對非常有幫助，祝你未來好運。

Our final questions come from the line of Steve Marotta with CL King.

我們的最後一個問題來自史蒂夫馬洛塔和 CL King 的對話。

I have 2 quick questions. You've answered this implicitly already in the call, but I'm going to ask explicitly. Has there been any change in your ability or outlook to push through price increases from now to the balance of the year in the wholesale channel?

我有兩個簡單的問題。您已經在通話中含蓄地回答了這個問題，但我要明確地詢問。從現在到今年剩餘時間，您推動批發通路漲價的能力或前景是否有任何變化？

Yes. This is an explicit question, so explicit answer. We're not planning much in the way of further pricing in the United States in any channel in the balance of the fiscal year. Outside the United States, it takes longer to get price increases to go forward at all because of contracts and agreements with retailers. So there's a longer cycle to that.

是的。這是一個明確的問題，所以明確的答案。在本財年的剩餘時間內，我們並沒有計劃在美國透過任何管道進一步定價。在美國以外的地區，由於與零售商簽訂的合約和協議，價格上漲需要更長的時間。所以周期比較長。

So some of that is still pending. And I suppose it's possible that if the consumer demand sensitivity or elasticity is tipping in some way that it would be harder or some of those price increases may have to be lower. That said, everyone on the planet, including the retailers, are keenly aware that the underlying costs, whether it's labor, transportation and certain commodities are still up. FX has also played a role now. People have seen the moves in FX in recent weeks, that's new, whether it's the pound or the euro or the Chinese RMB just to pick 3 very prominent ones.

所以其中一些仍然懸而未決。我認為，如果消費者需求敏感度或彈性以某種方式傾斜，情況可能會變得更加困難，或者某些價格上漲可能必須降低。也就是說，地球上的每個人，包括零售商，都敏銳地意識到潛在成本，無論是勞動力、運輸或某些商品的成本仍在上漲。外匯現在也發揮了作用。人們已經看到最近幾週外匯的走勢，無論是英鎊、歐元還是人民幣，這都是新的，僅舉三個非常突出的。

And in the case of the U.S., it's not our plan to have significant new rounds of price. Are you asking about rolling back, Steve? Are you talking about pushing other ones into the marketplace on a forward basis?

就美國而言，我們不打算進行新一輪的大幅降價。你是在問回滾嗎，史蒂夫？您是在談論向前推動其他產品進入市場嗎？

Let's assume for a moment that in the month of September, you were expected to ship items that were priced at 5% to 10% above last year's September level. Have you received any additional incremental pushback from the wholesale channel saying no, it's not going to be 5% or 10%. We're only going to take flat or something along those lines. Has there been any delta in what was otherwise expected to be shipped on a unit price basis for the balance of the year versus 2 months ago?

我們假設在 9 月份，您預計發貨的商品價格將比去年 9 月份的水平高出 5% 到 10%。您是否收到來自批發管道的任何額外增量阻力，說不，不會是 5% 或 10%。我們只會採取扁平或類似的方式。與 2 個月前相比，今年餘下時間預計以單價出貨的貨物是否有增量？

Yes. Got it. Now I understand. So no is the answer. Those increases were already made. The arrangements with the retailers already made. And then the consumer shelf prices, they can vary. We don't set those shelf prices; that's for the retailer. And then the demand curve is now playing out in certain categories, there is sensitivity. So some consumers are either trading down or they're just spending their money somewhere else, which is a buying pattern thing. So it's hard to buy a plane ticket these days at the prices that people were paying before, as an example, and yet people want more of them, just to give a little color. And yet that said, their money is also going to the kinds of things we buy. I tried to get this point across before. I just don't know if it's coming through, which is most of those categories still at an elevated rate versus the pre-COVID level. And there's data point after data point in our press release.

是的。知道了。現在我明白了。所以答案是否定的。這些增加已經完成。已經與零售商做出了安排。然後消費者的貨架價格可能會有所不同。我們不設定這些貨架價格；那是給零售商的。然後需求曲線現在在某些類別中發揮作用，存在敏感性。因此，有些消費者要么降價購買，要么只是把錢花在其他地方，這是一種購買模式。舉個例子，現在很難以人們以前支付的價格購買機票，但人們想要更多，只是為了增添一點色彩。儘管如此，他們的錢也花在了我們買的東西上。我之前曾試圖闡明這一點。我只是不知道它是否會實現，其中大多數類別的比率仍高於新冠疫情前的水平。我們的新聞稿中有一個又一個的數據點。

Even in Health & Wellness, I mentioned in the prepared remarks that the expectations for the rest of this fiscal year, the outlook that we're giving just now is 9% above the pre-pandemic level in the category that was most exposed to the pandemic up and down, the one that took the full brunt of the EPA matter. So it speaks to the underlying demand comment I'm trying to make.

即使在健康與保健領域，我在準備好的發言中也提到，對於本財年剩餘時間的預期，我們剛才給出的前景比疫情前水平高出9%，而這一類別是受疫情影響最大的類別。大流行的起起落落，是美國環保署問題的首當其衝的問題。所以它說明了我試圖做出的潛在需求評論。

And in terms of your specific question about would we be shipping in September products that we had priced higher and now they're priced lower? The answer is no. That's not our expectation at all.

至於您的具體問題，我們是否會在 9 月發貨，以前定價較高但現在定價較低的產品？答案是不行。這根本不是我們的期望。

Okay. That's very helpful. My follow-up question is, are you experiencing the very same dynamic in your owned point of sale from a DTC standpoint than you're experiencing at wholesale?

好的。這非常有幫助。我的後續問題是，從 DTC 的角度來看，您在自己的銷售點中遇到的動態是否與在批發中遇到的動態完全相同？

Generally, no. And the reason is surprising, though, is because our DTC is biggest in the categories that are most on trend with the current buying patterns. So think especially Osprey and Hydro Flask, those are the 2 biggest ones for DTC. OXO is behind it and OXO is having a reduction in its DTC versus the pandemic highs, but we've done so much on DTC, so much on that website and come quite far that it's still up versus the pre-pandemic level as well.

一般來說，不會。但令人驚訝的是，我們的 DTC 在當前購買模式最受歡迎的類別中是最大的。因此，尤其要考慮 Osprey 和 Hydro Flask，它們是 DTC 中最大的兩個。 OXO 是背後的推動者，OXO 的DTC 與大流行病高點相比有所下降，但我們在DTC 上做了很多工作，在該網站上做了很多工作，並且取得了很大進展，與大流行前的水平相比仍然有所上升。

And as we've said many times on these calls, we have major investments going in future DTC products, and we expect DTC to be a significant building block for us going forward. That big warehouse that we're building in Tennessee is going to have best-in-class DTC fulfillment capability that will lower our cost to serve, greatly improve our ability to track the entire order from order to cash, so people can have better experiences. And then from a volume standpoint, it's multiples of what we've been able to do before. So strong go on DTC and surprisingly resilient, but it's because the category is on the on-trend [to watch].

正如我們在這些電話會議上多次說過的那樣，我們對未來的 DTC 產品進行了大量投資，我們預計 DTC 將成為我們未來發展的重要組成部分。我們在田納西州建造的那個大型倉庫將擁有一流的 DTC 履行能力，這將降低我們的服務成本，大大提高我們追蹤從訂單到現金的整個訂單的能力，以便人們能夠獲得更好的體驗。從數量的角度來看，這是我們之前能夠做到的數倍。 DTC 的發展如此強勁，並且具有令人驚訝的彈性，但這是因為該類別處於流行趨勢[值得關注]。

There are no further questions at this time. I would like to turn the call back over to management for any closing comments.

目前沒有其他問題。我想將電話轉回管理層以獲取任何結束意見。

So, just a quick one is thanks. Thanks very much for listening today, for being with us. As Bob said at the beginning of the call, there's quite a lot of information in the material today because the world changed so much since April, and we've tried as always to be very transparent. I also would say that we are quite diligent on all of the 3 areas that we talked about on the cost side, whether it's inventory, Project Delta in Health & Wellness or the new broader corporate look at our cost and efficiency programs, and we gave some examples in the call. So we're quite focused on this. And other than that, we look forward to speaking to many of you in the coming days and weeks. There's multiple forums and we're out of our quiet period and looking forward to it. So thank you very much.

所以，快速致謝。非常感謝您今天的聆聽、與我們同在。正如鮑勃在電話會議開始時所說，今天的材料中有相當多的信息，因為自四月份以來世界發生了很大變化，我們一如既往地努力做到非常透明。我還想說，我們在成本方面討論的所有3 個領域都非常勤奮，無論是庫存、健康與保健領域的Delta 項目，還是新的更廣泛的企業對我們的成本和效率計劃的看法，我們給出了通話中的一些例子。所以我們非常關注這一點。除此之外，我們期待在未來幾天和幾週內與你們中的許多人交談。有多個論壇，我們已經走出了平靜期並期待著它。非常感謝。

This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。