Helen of Troy Ltd (HELE) 2024 Q1 法說會逐字稿

Greetings. Welcome to the Helen of Troy Limited First Quarter Fiscal 2024 Earnings Call. (Operator Instructions). Please note that this conference is being recorded.

問候。歡迎參加 Helen of Troy Limited 2024 財年第一季度收益電話會議。 （操作員說明）。請注意，本次會議正在錄製中。

At this time, I'll hand the conference over to Jack Jancin, Senior Vice President of Corporate Business Development. Mr. Jancin, you may now begin.

這次，我將把會議交給企業業務開發高級副總裁 Jack Jancin。 Jancin 先生，您現在可以開始了。

Thank you, operator. Good morning, everyone, and welcome to Helen of Troy's First Quarter Fiscal 2024 Earnings Conference Call. The agenda of 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; and Ms. Noel Geoffroy, the company's COO, will comment on financial performance of the quarter and current trends. Then Mr. Brian Grass, the company's interim CFO, will review the financials in more detail and review our financial outlook for fiscal 2024. Following this, we will take questions you have for us today.

謝謝你，接線員。大家早上好，歡迎參加 Helen of Troy 2024 財年第一季度收益電話會議。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。公司首席執行官 Julien Mininberg 先生；公司首席運營官Noel Geoffroy女士將評論本季度的財務業績和當前趨勢。然後，公司臨時首席財務官 Brian Grass 先生將更詳細地審查財務狀況，並審查我們 2024 財年的財務前景。隨後，我們將回答您今天向我們提出的問題。

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 actual results.

本次電話會議可能包含某些基於管理層當前對未來事件或財務業績的預期的前瞻性陳述。一般來說，“預期”、“相信”、“預期”以及其他類似的詞語都是識別前瞻性陳述的詞語。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存在重大差異。

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 information.

本次電話會議還可能包括可能被視為非公認會計準則財務信息的信息。這些非 GAAP 指標不能替代 GAAP 財務信息，並且計算方式可能與其他方披露的非 GAAP 財務信息不同。該公司提醒聽眾不要過分依賴前瞻性陳述或非公認會計準則信息。

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 cadence 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，我想通知所有感興趣的各方，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。收益報告包含將非公認會計原則財務指標與其相應的基於公認會計原則的指標進行協調的節奏。可以通過選擇公司主頁上的“投資者關係”選項卡，然後選擇“新聞稿”選項卡來獲取該新聞稿。

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, we would like to talk about our first quarter results, provide color across our business and update you on our continued strong progress on Project Pegasus as well as some other company initiatives. We will also discuss our outlook for the full fiscal year.

謝謝你，傑克。大家早上好，感謝您加入我們。今天，我們想談談我們第一季度的業績，為我們的業務提供色彩，並向您介紹我們在“飛馬計劃”以及其他一些公司計劃方面持續強勁進展的最新情況。我們還將討論整個財年的前景。

Starting with the quarter, I am pleased to report that our results, including our sales and adjusted earnings per share were better than we expected despite continued pressure on our categories from lower consumer demand and shifting buying patterns. We are also pleased to improve our margins, make further progress on inventory reduction and deliver significantly improved cash flow.

從本季度開始，我很高興地報告，儘管消費者需求下降和購買模式轉變給我們的品類帶來持續壓力，但我們的業績（包括銷售額和調整後每股收益）仍好於我們的預期。我們還很高興提高利潤率，在減少庫存方面取得進一步進展，並顯著改善現金流。

Looking at revenue, we saw outperformance from key Leadership Brands, including OXO, Osprey and PUR as well as from Curlsmith. Several of our Leadership Brands are improving share in certain categories in the United States, including technical backpacks from Osprey, kitchen utensils and storage containers from OXO, pharmacy humidifiers for Vicks, nasal aspirators for Braun and seasonal heaters for Honeywell. Our prestige hair care liquids, which feature some of the highest margins in the company, grew during the quarter compared to the first quarter of last year. International also outperformed during the quarter, driven by Braun.

從收入來看，我們看到主要領導品牌的表現出色，包括 OXO、Osprey 和 PUR 以及 Curlsmith。我們的幾個領導品牌在美國某些類別的份額正在提高，包括 Osprey 的技術背包、OXO 的廚房用具和儲物容器、Vicks 的藥房加濕器、Braun 的吸鼻器和 Honeywell 的季節性加熱器。我們的高端護髮液是公司利潤率最高的產品，與去年第一季度相比，本季度實現了增長。在博朗的推動下，國際航空在本季度的表現也優於大盤。

Our strategic choice to double down on international continues to pay off. For perspective, our consolidated first quarter revenue grew at a 6% compound annual growth rate compared to the pre-COVID base of fiscal '20. During the quarter, we also made good progress on margins, significantly improving gross profit margin and expanding our adjusted operating margin. We also delivered outstanding operating cash flow in the quarter, well ahead of expectations, driven by better-than-expected sales and significant progress on reducing working capital.

我們加倍投入國際業務的戰略選擇繼續獲得回報。從長遠來看，與新冠疫情爆發前的 20 財年相比，我們第一季度的綜合收入複合年增長率為 6%。本季度，我們在利潤率方面也取得了良好進展，顯著提高了毛利率並擴大了調整後的營業利潤率。在好於預期的銷售和減少營運資本方面取得重大進展的推動下，我們本季度還實現了出色的運營現金流，遠遠超出預期。

I am very pleased with how well our organization is executing on the various initiatives we have announced designed to significantly improve cash flow in fiscal '24. In line with our stated objective, we used our cash flow to further reduce our debt, putting us in a better position to deploy additional capital sooner.

我對我們的組織執行我們已宣布的旨在顯著改善 24 財年現金流的各種舉措的執行情況感到非常滿意。根據我們既定的目標，我們利用現金流進一步減少債務，使我們能夠更好地更快地部署額外資本。

Turning to our outlook. We are maintaining our expectations for net sales and adjusted earnings per share for the full fiscal year as well as our key cash flow and balance sheet targets. We expect to deliver, including a return to adjusted earnings per share growth in the back half despite expected pressure on our categories and consumers for the remainder of the fiscal year. That consumer pressure includes inflation, interest rates that are expected to stay higher and increasing household debt, all of which are headwinds to discretionary purchases.

轉向我們的展望。我們維持對整個財年淨銷售額和調整後每股收益以及關鍵現金流和資產負債表目標的預期。儘管預計本財年剩餘時間我們的品類和消費者將面臨壓力，但我們預計將實現包括在下半年恢復調整後每股收益增長的目標。消費者壓力包括通貨膨脹、預計將保持較高的利率以及不斷增加的家庭債務，所有這些都是自由支配購買的阻力。

On a positive note, we are seeing that retailer inventory rebalancing as largely normalized following the significant adjustments affecting nearly all consumer discretionary categories over the past year. Our retail partners are now increasingly matching their orders to consumer demand where we have syndicated point-of-sale data, and in retailers where we have specific point-of-sale data, we are seeing demand normalize in some of our categories and settle at or above pre-COVID levels.

從積極的角度來看，我們看到，在過去一年影響幾乎所有非必需消費品類別的重大調整之後，零售商庫存重新平衡已基本正常化。我們的零售合作夥伴現在越來越多地將訂單與消費者需求相匹配，我們擁有聯合銷售點數據，而在我們擁有特定銷售點數據的零售商中，我們看到某些類別的需求正常化並穩定在或高於新冠疫情前的水平。

Before turning the call over to Noel and Brian, I would like to comment on Pegasus. As you may recall, Pegasus is designed to improve operating margins, cash flow and operating and organizational efficiency. I am very pleased with how well our associates around the world have embraced the Pegasus structural changes and its financial goals.

在將電話轉給諾埃爾和布萊恩之前，我想對 Pegasus 發表評論。您可能還記得，Pegasus 旨在提高運營利潤、現金流以及運營和組織效率。我對我們世界各地的員工接受 Pegasus 結構性變革及其財務目標的程度感到非常高興。

On the structural side, the specific changes we announced in January are working. The new North American regional market organization is expected to take our sales and shopper capabilities to new levels. In our business segments, our brand and category teams are now even more obsessed with delighting consumers. Similarly, in shared services, our global operations teams are implementing new standardized tools and fully owning our supply chain end to end.

在結構方面，我們在一月份宣布的具體變化正在發揮作用。新的北美區域市場組織預計將把我們的銷售和購物能力提升到新的水平。在我們的業務領域，我們的品牌和品類團隊現在更加註重取悅消費者。同樣，在共享服務中，我們的全球運營團隊正在實施新的標準化工具，並完全擁有我們的端到端供應鏈。

On the savings side, the set of work streams we are executing under Pegasus are nicely on track. In all cases, our people are flowing to the work. They are demonstrating their adaptability, demonstrating the power of our culture and executing with excellence. We continue to believe these initiatives will improve profitability and provide significant fuel to make additional growth investments in our flywheel that are intended to drive sustainable long-term growth and value creation.

在節省方面，我們在 Pegasus 下執行的一系列工作流程進展順利。在所有情況下，我們的員工都在奔赴工作崗位。他們展示了自己的適應能力、我們文化的力量以及卓越的執行力。我們仍然相信，這些舉措將提高盈利能力，並為我們的飛輪進行額外的增長投資提供重要動力，旨在推動可持續的長期增長和價值創造。

I will now turn the call over to Noel, who will speak more about further progress on several business initiatives, including some that fall under the Pegasus work streams. She will also speak to our business segment performance.

我現在將把電話轉給 Noel，他將更多地談論幾項業務計劃的進一步進展，包括一些屬於 Pegasus 工作流程的計劃。她還將談論我們業務部門的業績。

Thank you, Julien, and good morning, everyone. Echoing Julien's comments, I am proud of our team's focus, dedication and achievement to date on a wide range of initiatives. I'd like to highlight several of those here, including Pegasus.

謝謝朱利安，大家早上好。響應 Julien 的評論，我為我們團隊迄今為止在一系列廣泛舉措上的專注、奉獻和成就感到自豪。我想在這裡強調其中的幾個，包括 Pegasus。

Specific to Pegasus, as expected, we are seeing significant momentum and savings in line with the previously announced targets. This continues to help us offset some of the anticipated cost headwinds this fiscal year. Further, the new capabilities in our go-to-market structure, analytics, operations and finance are expected to help improve our performance and simplify how we work in fiscal '24 and beyond. As a reminder, about 25% of our Pegasus savings is scheduled for this fiscal year, with the largest portion of targeted savings scheduled for realization in fiscal '25 and the remainder in fiscal '26.

具體到 Pegasus，正如預期的那樣，我們看到了與之前宣布的目標相符的顯著勢頭和節省。這繼續幫助我們抵消本財年預期的一些成本阻力。此外，我們的市場結構、分析、運營和財務方面的新功能預計將有助於提高我們的績效並簡化我們在 24 財年及以後的工作方式。提醒一下，我們的 Pegasus 儲蓄計劃在本財年實現約 25%，目標儲蓄的最大部分計劃在 25 財年實現，其餘部分在 26 財年實現。

We intend to use the savings to fuel our value creation flywheel, investing in brilliant marketing and even more consumer-centric innovation to delight consumers and shoppers and further enhancing the capabilities of our regional market organizations and global shared services. We also continue to look for ways to accelerate the savings so that we can reinvest in growth more quickly.

我們打算利用節省下來的資金來推動我們的價值創造飛輪，投資於出色的營銷和更多以消費者為中心的創新，以取悅消費者和購物者，並進一步增強我們區域市場組織和全球共享服務的能力。我們還繼續尋找加速儲蓄的方法，以便我們能夠更快地再投資於增長。

One of the key structural changes in Pegasus was the creation of our North American regional market organization or NARMO. On our fourth quarter call, we highlighted the benefits of this organization, including securing new distribution, implementing joint business plans with our biggest retail partners and using shopper data to better identify and act on relevant insights. We recently held our first-ever NARMO sales meeting focused on educating, collaborating, sharing best practices and rallying behind our brand plans and multiyear innovation pipeline. The meeting was full of energy, pride and collaboration, and I'm pleased to report that the team has identified and is securing meaningful additional growth opportunities that we expect to contribute to sales longer term.

Pegasus 的關鍵結構變化之一是北美區域市場組織（NARMO）的創建。在第四季度的電話會議上，我們強調了該組織的優勢，包括確保新的分銷、與我們最大的零售合作夥伴實施聯合業務計劃以及使用購物者數據更好地識別相關見解並採取行動。我們最近舉行了首次 NARMO 銷售會議，重點關注教育、合作、分享最佳實踐以及支持我們的品牌計劃和多年創新渠道。會議充滿了活力、自豪感和協作精神，我很高興地向大家報告，團隊已經確定並正在確保有意義的額外增長機會，我們希望這些機會能夠為長期銷售做出貢獻。

Another Pegasus initiative relates to our design to value or DTV initiative. Our DTV approach combines consumer insights to understand what they value most, competitive insights into how other companies' products meet consumer needs and supplier insights into new technologies and the cost to manufacture. We use this process to elevate and build better. Our team is energized and has several new design-to-value exploratory initiatives in sight. These include additional platforming across several different products to standardize select componentry and raw materials as well as new design engineered to deliver better performance at a lower cost.

Pegasus 的另一項舉措與我們的價值設計或 DTV 舉措有關。我們的數字電視方法結合了消費者洞察力以了解他們最看重的是什麼，競爭洞察力了解其他公司的產品如何滿足消費者需求以及供應商洞察力了解新技術和製造成本。我們利用這個過程來提升和建設得更好。我們的團隊充滿活力，並有幾項新的從設計到價值的探索性舉措。其中包括跨多種不同產品的額外平台，以標準化精選組件和原材料，以及旨在以更低的成本提供更好的性能的新設計。

We are making significant progress on our previously announced nearshore sourcing initiative to grow existing and new supplier capabilities outside of China. This will help us diversify geopolitical risk, enhance our responsiveness and reduce inventory. These moves also create value as they can provide quicker transit time, greater speed to market, scale advantages and process standardization. During the first quarter, we implemented a major piece of our multiyear nearshoring strategy, successfully relocating some production of Hydro Flask bottles to the Western Hemisphere. OXO Pop Containers are also expected to begin nearshoring by early fall of this year.

我們之前宣布的近岸採購計劃正在取得重大進展，以增強中國境外現有和新供應商的能力。這將有助於我們分散地緣政治風險，提高我們的響應能力並減少庫存。這些舉措還創造了價值，因為它們可以提供更快的運輸時間、更快的上市速度、規模優勢和流程標準化。在第一季度，我們實施了多年近岸戰略的重要組成部分，成功地將部分 Hydro Flask 瓶生產轉移到西半球。 OXO Pop Containers 預計將於今年初秋開始近岸生產。

I'm also very proud to share that our new Gallaway, Tennessee distribution center completed in March, was recently awarded the prestigious LEED Silver certification. In addition to its environmentally friendly design, this new facility has significant levels of new capability and automation that will enhance multiple areas of our business for years to come. We now have greater ability and capacity for in-line customization and personalization for direct-to-consumer Hydro Flask orders. This enables consumers to make their bottle or tumbler fit their unique personality and needs through engraving customer color combinations and custom accessories like strap, lid and boot style. Most recently in June, we increased our personalization options by adding 86 new designs that consumers can choose from.

我還非常自豪地告訴大家，我們位於田納西州加拉韋的新配送中心於 3 月份竣工，最近榮獲著名的 LEED 銀級認證。除了環保設計外，這個新工廠還具有顯著的新功能和自動化水平，將在未來幾年增強我們業務的多個領域。我們現在擁有更強的能力和能力，可以直接面向消費者的 Hydro Flask 訂單進行在線定制和個性化。這使得消費者能夠通過雕刻客戶顏色組合和定製配件（如帶子、蓋子和靴子樣式）來使他們的瓶子或玻璃杯適合他們獨特的個性和需求。最近在 6 月份，我們增加了 86 種新設計供消費者選擇，從而增加了個性化選項。

We are also scaling up our automatic carton packaging system. These machines create custom shipping boxes from continuous feed corrugated cardboard. Each shipping carton is perfectly sized to fit each order. This real-time format change is managed automatically and directly from a database. The equipment offers high levels of flexibility, automation and speed of processing and can create one box every few seconds. Our made-to-fit shipper incorporates bumpers into the packaging to protect the items from damage during transit while reducing the amount of packing material used. The packaging also offers easy on sealing and resealing for frictionless returns.

我們還在擴大我們的自動紙箱包裝系統。這些機器利用連續進料瓦楞紙板創建定制運輸箱。每個運輸箱的尺寸都完美適合每個訂單。這種實時格式更改是直接從數據庫自動管理的。該設備具有高度的靈活性、自動化和處理速度，每隔幾秒鐘就可以生產一個盒子。我們量身定制的托運商在包裝中加入了保險槓，以保護物品在運輸過程中免受損​​壞，同時減少包裝材料的使用量。該包裝還易於密封和重新密封，實現無摩擦退貨。

We launched this better and more efficient initiative on Hydro Flask bottles and are meaningfully reducing carbon emissions and cardboards required. We're using less building materials and reducing the customer transport volume cube by almost half for our bottles. This capability offers a better consumer experience, improved operational efficiency and less waste.

我們針對 Hydro Flask 瓶推出了這項更好、更高效的舉措，並有意義地減少了碳排放和所需的紙板。我們使用了更少的建築材料，並將瓶子的客戶運輸體積減少了近一半。此功能可提供更好的消費者體驗、提高運營效率並減少浪費。

I would like to now turn to our first quarter business results. Consolidated net sales declined 6.6%, and core adjusted diluted earnings per share declined 19.5% in the first quarter. As Julien highlighted, these results were better than we anticipated.

我現在想談談我們第一季度的業務業績。第一季度綜合淨銷售額下降 6.6%，核心調整後稀釋每股收益下降 19.5%。正如朱利安強調的那樣，這些結果比我們預期的要好。

Let's start with Home & Outdoor. Osprey performed very well in the quarter, driven by a number of factors, including our improved inventory position compared to fiscal '23 when COVID-related factory closures curtailed supply. We also benefited from new product introductions and accelerated demand in the travel category, both in the U.S. and abroad as well as strong online point of sale and replenishment. Osprey also expanded its #1 share position in U.S. tech packs in the most recent 3-month period. The gain was driven by improved supply and product innovation, such as improved bike and hydration packs and extended technical packs to empower people of all shapes and sizes to embrace the outdoors. We expect Osprey to continue to benefit from our better inventory position to strengthen the travel market, our strong innovation and expanded distribution in both existing and new customers in fiscal '24.

讓我們從家庭和戶外開始。受到多種因素的推動，Osprey 在本季度表現非常出色，其中包括與 23 財年（當時與新冠疫情相關的工廠關閉導致供應減少）相比，我們的庫存狀況有所改善。我們還受益於新產品的推出和美國及海外旅行類別需求的加速增長，以及強大的在線銷售和補貨點。最近 3 個月內，Osprey 還擴大了其在美國技術包中排名第一的份額。這一增長是由供應改善和產品創新推動的，例如改進的自行車和水袋包以及擴展的技術包，使各種體型和體型的人們能夠擁抱戶外活動。我們預計 Osprey 將繼續受益於我們更好的庫存狀況以加強旅遊市場、我們強大的創新以及在 24 財年在現有和新客戶中擴大的分銷。

The Osprey brand also outperformed the market in core categories even as the overall home category trends continue to normalize from COVID hive and consumer spending shifts toward necessities, travel and services. Sales were also impacted in the quarter by the timing of some club programs, which fell into the first quarter last year but will fall later this fiscal year.

儘管整體家居品類趨勢因新冠肺炎疫情而繼續正常化，消費者支出轉向必需品、旅行和服務，但 Osprey 品牌在核心品類上的表現也優於市場。本季度的銷售額還受到一些俱樂部計劃的時間安排的影響，這些計劃在去年第一季度進行，但在本財年晚些時候將下降。

For additional perspective, the kitchen gadgets and dry food storage categories and OXO sales remain solidly ahead of prepandemic levels. OXO saw strong point of sale and replenishment from key brick-and-mortar retailers and also benefited from new distribution, including sell-in for test of OXO SoftWorks at Walmart.

從另一個角度來看，廚房用具、乾糧儲存類別和 OXO 銷售額仍大幅領先於大流行前的水平。 OXO 看到了來自主要實體零售商的強大銷售點和補貨，並且還受益於新的分銷，包括在沃爾瑪進行 OXO SoftWorks 測試的銷售。

OXO's market share growth in both kitchen gadgets and dry food storage in the most recent 3-month period was also driven by new product innovation. One particularly successful innovation that launched in May is the OXO grilling prep and carrier system designed based on the consumer insight of reducing trips from the inside kitchen to the grill. The 4.9-star rated set features nesting containers to prep, marinate, transport and serve grilled meat and vegetables. It has garnered strong attention on TikTok and earned a ringing endorsement by [The Kitchen], a highly respected third party, which called it a game-changing OXO find that is a must-have for grilling season.

最近 3 個月內，新產品創新也推動了 OXO 在廚房用具和乾糧儲存領域的市場份額增長。 5 月份推出的一項特別成功的創新是 OXO 燒烤準備和運輸系統，該系統是根據消費者減少從內部廚房到燒烤架的行程的洞察而設計的。這套 4.9 星級套裝配有嵌套容器，用於準備、醃製、運輸和供應烤肉和蔬菜。它在 TikTok 上引起了強烈關注，並獲得了備受推崇的第三方 [The Kitchen] 的大力認可，稱其為改變遊戲規則的 OXO 發現，是燒烤季節的必備品。

Turning to Hydro Flask. In brick-and-mortar, the brand faced continued pressure in the quarter from overall softness in the insulated bottle category. Consumer preference continues to shift away from bottles in the U.S., where Hydro Flask is by far the leader, to tumblers where the brand has a smaller presence. Subsequent to the end of the quarter, Hydro Flask executed a soft launch of the new travel tumbler on June 21, exclusively on hydroflask.com with great colors, the unique ability to customize with engraving and a flexible straw. We are excited by the strong consumer response and are optimistic about growing this new addition to the Hydro Flask family.

轉向水瓶。在實體店中，該品牌本季度因保溫瓶類別整體疲軟而面臨持續壓力。在美國，消費者的偏好繼續從Hydro Flask 遙遙領先的瓶裝轉向該品牌影響力較小的玻璃杯。本季度末後，Hydro Flask 於 6 月 21 日在 Hydroflask.com 上獨家試行推出了新款旅行杯，該杯具有精美的色彩、獨特的雕刻定制能力和靈活的吸管。我們對消費者的強烈反應感到興奮，並對 Hydro Flask 系列的這一新產品的發展持樂觀態度。

In March, Hydro Flask introduced a first-of-its-kind stainless steel bottle trade-in and recycling program specifically designed to ensure Hydro Flask products are recycled in an easy and responsible way. The process is simple and straightforward: consumers register their Hydro Flask bottle, receive and print out a shipping label and drop it off at the near shipping location, no packaging required. Hydro Flask recycles the product, and the consumer receives the $5 promotional code to use on a future purchase. This illustrates how the brand is participating in the circular economy and is providing a way for consumers to feel better about parting ways with their well-loved Hydro Flask.

三月，Hydro Flask 推出了首個不銹鋼瓶以舊換新和回收計劃，專門設計用於確保 Hydro Flask 產品以簡單且負責任的方式回收。這個過程簡單明了：消費者登記他們的 Hydro Flask 瓶，接收並打印運輸標籤，然後將其放在附近的運輸地點，無需包裝。 Hydro Flask 回收該產品，消費者會收到 5 美元的促銷代碼，可在將來購買時使用。這說明了該品牌如何參與循環經濟，並為消費者提供了一種方式，讓他們在告別深受喜愛的 Hydro Flask 時感覺更好。

Turning now to Beauty & Wellness. In our beauty portfolio, our hair appliance has maintained a strong position even as the broader category continued to moderate compared to the prior year period. The Revlon Volumizer maintains above a 4.5-star rating, with over 330,000 reviews on Amazon alone, and multiple industry awards, including 4 additional awards in 2023, such as the Allure Readers' Choice Award.

現在轉向美容與健康。在我們的美容產品組合中，儘管與去年同期相比，更廣泛的類別繼續放緩，但我們的美髮器具仍然保持著強勢地位。 Revlon Volumizer 保持著 4.5 星以上的評級，僅在亞馬遜上就有超過 330,000 條評論，並獲得多項行業獎項，包括 2023 年額外獲得的 4 個獎項，例如 Allure 讀者選擇獎。

Appliance category softness was offset by good performance in our prestige liquids, which included a full quarter's contribution from Curlsmith compared to 6 weeks contribution in the prior year due to the acquisition timing. Both Drybar and Curlsmith performed well in the quarter, and our new Hot Tools liquids available exclusively at Ulta are resonating with consumers and on track to meet our expectations. We have meaningful new beauty product introductions planned for this fiscal year, including new product line launches and line extensions, supported by commercial innovation as well as engaging promotions around major holidays.

家電類別的疲軟被我們的高端液體產品的良好表現所抵消，其中包括 Curlsmith 整個季度的貢獻，而上一年由於收購時機而貢獻了 6 週的貢獻。 Drybar 和 Curlsmith 在本季度都表現良好，我們在 Ulta 獨家銷售的新 Hot Tools 液體引起了消費者的共鳴，並有望滿足我們的期望。我們計劃在本財年推出有意義的新美容產品，包括新產品線的推出和產品線的擴展，並得到商業創新以及重大節日期間的促銷活動的支持。

Drybar new launches include the smooth shot, paddle brush blow dryer, a new addition to our top-selling Drybar Detox Dry Shampoo range and a line of liquid products designed to offer more thickness and volume. Curlsmith also has a great lineup of new products, including Effortless Waves, Flawless Finished Hairspray and a new anti-frizz recipe line.

Drybar 新推出的產品包括平滑噴射、槳刷吹風機、我們最暢銷的 Drybar 排毒乾洗發水系列的新產品，以及旨在提供更多厚度和體積的一系列液體產品。 Curlsmith 還推出了一系列新產品，包括 Effortless Waves、Flawless Finished Hairspra​​y 和新的防毛躁配方系列。

Turning now to wellness. Our previously announced SKU rationalization program disproportionately touched our wellness portfolio. That impact was felt in the quarter on sales but meaningfully improved the margin profile of the portfolio complemented by strong performance from high-margin Vicks inhalant consumables.

現在轉向健康。我們之前宣布的 SKU 合理化計劃不成比例地影響了我們的健康產品組合。這一影響在本季度的銷售中有所體現，但在高利潤 Vicks 吸入消耗品的強勁表現的補充下，該產品組合的利潤狀況得到了有意義的改善。

Looking at specific wellness categories, we saw strong thermometry sales outside the U.S. as supply improves. This was offset by softer sales of seasonal fans, air filtration and humidification products as consumer spending shifted to other categories such as services and travel. Despite overall category declines, Helen of Troy's U.S. market shares remained strong in thermometers, inhalants and humidifiers, with the #1 position among branded products in all 3 of those categories.

從特定的健康類別來看，隨著供應的改善，我們看到美國以外的測溫產品銷售強勁。由於消費者支出轉向服務和旅行等其他類別，季節性風扇、空氣過濾和加濕產品的銷售疲軟抵消了這一影響。儘管整體類別有所下降，Helen of Troy 在溫度計、吸入劑和加濕器方面的美國市場份額仍然強勁，在所有這三個類別的品牌產品中均排名第一。

In water filtration, we saw some pickup in overall category growth in the first quarter, and PUR made a positive growth contribution to our Beauty & Wellness sales. Subsequent to the end of the first quarter, we saw incremental air purification device and filter sales due to the wildfire smoke that blanketed much of the U.S. Northeast quadrant and parts of the Midwest in late May and throughout June. We are proud to be able to help consumers and service retailers when they need us most. As these wildfires continue, we will continue to serve the demand.

在水過濾領域，我們看到第一季度整體品類增長有所回升，PUR 為我們的美容與健康銷售做出了積極的增長貢獻。第一季度末後，由於 5 月下旬和整個 6 月覆蓋美國東北象限大部分地區和中西部部分地區的野火煙霧，我們看到空氣淨化設備和過濾器的銷量有所增加。我們很自豪能夠在消費者和服務零售商最需要我們的時候為他們提供幫助。隨著這些野火的繼續，我們將繼續滿足需求。

Last, on the international front, we achieved sales growth driven primarily by the contributions of Braun, Osprey, Hot Tools and Curlsmith. Replenishment orders and select brick-and-mortar partners continue to normalize in line with point of sale. Braun outperformed our expectations as we were able to partially overcome continued supply constraints to help meet increase thermometer demand for the brand in EMEA and Asia.

最後，在國際方面，我們實現的銷售增長主要得益於 Braun、Osprey、Hot Tools 和 Curlsmith 的貢獻。補貨訂單和精選實體合作夥伴繼續與銷售點保持正常化。博朗的表現超出了我們的預期，因為我們能夠部分克服持續的供應限制，幫助滿足歐洲、中東和非洲和亞洲對該品牌不斷增長的溫度計需求。

With that, I would like to hand the call over to Brian.

說到這裡，我想把電話轉給布萊恩。

Thank you, Noel. Good morning, everyone. Looking forward to seeing some of you at the CJS conference tomorrow. As Julien and Noel mentioned, first quarter results exceeded our sales and earnings expectations, with year-over-year margin expansion despite unfavorable operating leverage. This outperformance, coupled with meaningful working capital improvement, drove strong cash flow and leverage reduction also ahead of our expectations at this point in the year.

謝謝你，諾埃爾。大家，早安。期待明天在 CJS 會議上見到你們。正如朱利安和諾埃爾提到的，第一季度的業績超出了我們的銷售和盈利預期，儘管經營槓桿不利，但利潤率仍同比增長。這種優異的表現，加上營運資本的顯著改善，推動了強勁的現金流和槓桿率的降低，也超出了我們今年此時的預期。

Consolidated net sales decreased 6.6%, favorable to the 9% to 7% decline we provided in our outlook in April. This reflects a shift of approximately $5 million of sales we previously expected in the second quarter of fiscal '24 into the first quarter. As a reminder, our outlook includes expected declines from our SKU rationalization efforts and the impact of the Bed Bath & Beyond bankruptcy.

綜合淨銷售額下降 6.6%，有利於我們在 4 月份的展望中預測下降 9% 至 7%。這反映了我們之前預計 24 財年第二季度約 500 萬美元的銷售額轉移到第一季度。提醒一下，我們的前景包括 SKU 合理化工作的預期下降以及 Bed Bath & Beyond 破產的影響。

We saw favorable performance from key brands in both business segments: international and the online channel. In Home & Outdoor, OXO exceeded our expectations despite a decline in club channel programs year-over-year, and Osprey growth was driven by strong consumer demand for travel-related products.

我們看到主要品牌在國際和在線渠道兩個業務領域的良好表現。在家居和戶外領域，儘管俱樂部渠道計劃同比下降，但 OXO 超出了我們的預期，而 Osprey 的增長是由消費者對旅行相關產品的強勁需求推動的。

In Beauty & Wellness, demand for Braun thermometry drove year-over-year growth, especially in international markets, and high water filtration demand drove growth in PUR. Our prestige beauty brands, Drybar and Curlsmith, continued to drive underlying growth and improve our mix, with distribution expansion and innovative products that resonate with consumers. Gross profit margin improved 380 basis points to 45.4% compared to 41.6% in the same period last year, in line with our expectations for the quarter. Year-over-year improvement was due to a more favorable product mix in Beauty & Wellness driven by Pegasus SKU rationalization, a more favorable customer mix in Home & outdoor, lower inbound freight costs and the favorable comparative impact of EPA compliance costs of 180 basis points incurred in the same period last year.

在美容與健康領域，對博朗測溫儀的需求推動了同比增長，尤其是在國際市場，而高水過濾需求推動了 PUR 的增長。我們的知名美容品牌 Drybar 和 Curlsmith 通過分銷擴張和與消費者產生共鳴的創新產品，繼續推動潛在增長並改善我們的產品組合。毛利率較去年同期的 41.6% 提高 380 個基點至 45.4%，符合我們對該季度的預期。同比改善的原因是 Pegasus SKU 合理化推動美容與健康領域更有利的產品組合、家居和戶外領域更有利的客戶組合、入境貨運成本降低以及 180 基點 EPA 合規成本的有利比較影響去年同期產生的積分。

GAAP operating margin for the quarter was 8.6% compared to 6.7% in the same period last year. We were pleased to expand adjusted operating margin by 30 basis points to 13.9% despite unfavorable operating leverage. The primary drivers of this improvement were a more favorable product mix within Beauty & Wellness, reflecting the benefits of SKU rationalization, a more favorable customer mix within Home & Outdoor and lower inbound freight costs. These factors were partially offset by higher inventory reserve expense, increased annual incentive compensation expense and an increase in outbound freight costs.

本季度 GAAP 運營利潤率為 8.6%，而去年同期為 6.7%。儘管運營槓桿不利，但我們很高興將調整後的運營利潤率擴大了 30 個基點，達到 13.9%。這一改善的主要驅動力是美容與健康領域更有利的產品組合，反映了 SKU 合理化的好處、家居與戶外領域更有利的客戶組合以及更低的入境貨運成本。這些因素被庫存儲備費用增加、年度激勵補償費用增加和出境運費增加部分抵消。

On a segment basis, Home & Outdoor adjusted operating margin decreased 30 basis points to 15.8%, driven by higher distribution expense, increased marketing expense, higher inventory reserve expense, an increase in outbound freight costs and unfavorable operating leverage, partially offset by a favorable customer mix and lower inbound freight costs. Adjusted operating margin for our Beauty & Wellness segment increased 80 basis points, reflecting a more favorable product mix driven by our SKU rationalization efforts, lower inbound freight costs, lower distribution expense, reduced marketing expense and a decrease in legal fees.

從分部來看，家居戶外調整後的營業利潤率下降了 30 個基點，至 15.8%，這是由於分銷費用增加、營銷費用增加、庫存儲備費用增加、出境貨運成本增加以及不利的經營槓桿，但部分被有利的客戶組合和較低的入境貨運成本。我們的美容與健康部門調整後的營業利潤率增加了 80 個基點，反映出我們的 SKU 合理化努力、較低的入境貨運成本、較低的分銷費用、減少的營銷費用和減少的法律費用推動了更有利的產品組合。

Net income was $22.6 million or $0.94 per diluted share. Non-GAAP adjusted diluted EPS decreased 19.5% to $1.94 per diluted share, primarily due to higher interest expense and lower adjusted operating income in Home & Outdoor.

淨利潤為 2260 萬美元，即稀釋後每股收益 0.94 美元。非 GAAP 調整後稀釋每股收益下降 19.5%，至稀釋每股 1.94 美元，主要是由於利息支出增加以及家居和戶外業務調整後營業收入減少。

Cash flow in the quarter was strong. We generated $121.1 million of operating cash flow, with a sequential decline in inventory of $21.6 million among other working capital improvements. Inventory at the end of the first quarter was $433.9 million, on track with our objective to reduce inventory to $400 million or below by the end of fiscal '24. We generated $109.2 million of free cash flow ahead of our expectations for the quarter.

本季度現金流強勁。我們產生了 1.211 億美元的運營現金流，其中庫存環比減少了 2160 萬美元以及其他營運資本改善。第一季度末的庫存為 4.339 億美元，符合我們到 24 財年末將庫存減少至 4 億美元或以下的目標。我們本季度產生了 1.092 億美元的自由現金流，超出了我們的預期。

We ended the quarter with total debt of $837.2 million, a sequential decline of approximately $97.3 million. Our net leverage ratio improved to 2.56x compared to 2.81x at the end of the fourth quarter.

本季度末，我們的債務總額為 8.372 億美元，比上一季度減少約 9730 萬美元。我們的淨槓桿率從第四季度末的 2.81 倍提高到 2.56 倍。

At the beginning of the first quarter, we swapped an additional $200 million of our outstanding variable rate debt to fixed rates, bringing the fixed rate total to $625 million or 75% of our total debt outstanding. At the end of the first quarter, our debt covenants allowed for additional borrowings of up to $343 million, and the amount available for borrowings under our credit agreement was $638 million. We believe we remain on track to reduce our net leverage ratio to between 2x and 1.85x by the end of fiscal '24, not including any benefit from facility footprint optimization efforts that are underway.

在第一季度初，我們將另外 2 億美元的未償還浮動利率債務轉換為固定利率，使固定利率總額達到 6.25 億美元，佔未償還債務總額的 75%。截至第一季度末，我們的債務契約允許額外借款高達 3.43 億美元，而根據我們的信貸協議可用於借款的金額為 6.38 億美元。我們相信，到 24 財年末，我們仍有望將淨槓桿率降低至 2 倍至 1.85 倍，這不包括正在進行的設施佔地面積優化工作帶來的任何好處。

Turning to our outlook for fiscal '24. We are maintaining our full year expectations. While we are pleased to have outperformed our expectations in the first quarter, at this point in the year, we are maintaining our flexibility to use the overperformance to fund incremental growth investments in our most attractive brand opportunities or as an offset to potential further consumer spending softness. We will continue to assess our algorithm for balancing investment spending and earnings growth as the year progresses. Our view on a significant or prolonged recession has not changed and that it cannot be reasonably estimated, and therefore, it is not included in our outlook. We are encouraged by the continued overall improvement in trade inventory on a sequential basis and believe that when consumer demand does strengthen, we are well positioned with a diversified product portfolio and sufficient inventory to serve that demand.

轉向我們對 24 財年的展望。我們維持全年預期。雖然我們很高興第一季度的表現超出了我們的預期，但在今年的這個時候，我們仍保持靈活性，利用超額表現為我們最具吸引力的品牌機會的增量增長投資提供資金，或作為潛在的進一步消費者支出的抵消柔軟度。隨著時間的推移，我們將繼續評估平衡投資支出和盈利增長的算法。我們對嚴重或長期衰退的看法沒有改變，而且無法合理估計，因此，它不包括在我們的展望中。我們對貿易庫存環比持續全面改善感到鼓舞，並相信當消費者需求確實增強時，我們將擁有多元化的產品組合和充足的庫存來滿足這一需求。

We continue to expect consolidated sales between $1.965 billion and $2.015 billion in fiscal '24, implying a decline of 5.2% to 2.8%, which continues to reflect the estimated unfavorable year-over-year revenue impacts of our SKU rationalization efforts and the bankruptcy of Bed Bath & Beyond of approximately 3.4% combined.

我們仍然預計 24 財年的綜合銷售額將在 19.65 億美元至 20.15 億美元之間，這意味著下降 5.2% 至 2.8%，這繼續反映了我們的 SKU 合理化工作和破產的估計對同比收入的不利影響。 Bed Bath & Beyond 合計約佔 3.4%。

In terms of our net sales outlook by segment, we expect a Home & Outdoor decline of 1.7% to growth of 1% and a Beauty & Wellness decline of 8% to 5.8%. We believe we remain on track to deliver our gross margin expansion target of approximately 460 basis points at the high end of our guidance range as we drive improvement in product and customer margin mixes, disproportionately feed our highest-margin businesses from an investment perspective and realize the benefit of lower commodity and inbound freight costs.

就我們按細分市場劃分的淨銷售額前景而言，我們預計家居和戶外用品將下降 1.7%，增長 1%，美容和健康用品將下降 8% 至 5.8%。我們相信，隨著我們推動產品和客戶利潤率組合的改善、從投資角度不成比例地滿足我們最高利潤率的業務並實現降低商品和入境貨運成本的好處。

We expect GAAP diluted EPS of $3.81 to $4.67, which includes the estimated balance sheet impact of the Bed Bath & Beyond bankruptcy of $0.17 and estimated restructuring charges of $2.75 to $2.43. We continue to expect non-GAAP adjusted diluted EPS in the range of $8.50 to $9, which implies a decline of 10.1% to 4.8%. Our adjusted diluted EPS outlook continues to include an increase in interest and depreciation expense totaling approximately $0.91 net of tax or a 9.6% growth headwind.

我們預計 GAAP 攤薄後每股收益為 3.81 美元至 4.67 美元，其中包括 Bed Bath & Beyond 破產對資產負債表的預計影響 0.17 美元以及預計重組費用 2.75 美元至 2.43 美元。我們繼續預計非 GAAP 調整後攤薄每股收益在 8.50 美元至 9 美元之間，這意味著下降 10.1% 至 4.8%。我們調整後的稀釋後每股收益展望繼續包括利息和折舊費用的增加，扣除稅後總計約 0.91 美元，即增長阻力為 9.6%。

Our outlook continues to reflect operational earnings growth despite unfavorable operating leverage. At the high end of our outlook range, adjusted EBITDA is expected to grow approximately 6.3%, and margin is expected to expand by approximately 150 basis points despite incremental annual incentive compensation expense of approximately $27 million year-over-year, which represents an 8.2% growth headwind and 135-basis-point margin headwind.

儘管運營槓桿不利，但我們的前景繼續反映運營盈利增長。在我們展望範圍的高端，調整後的 EBITDA 預計將增長約 6.3%，儘管年度激勵補償費用同比增加約 2700 萬美元（相當於 8.2%），但利潤率預計將增長約 150 個基點。 %的增長逆風和135個基點的利潤逆風。

Our outlook for operational earnings growth is driven by a better overall margin mix, lower commodity and inbound freight costs and cost savings from Pegasus, which remains on track. We expect Pegasus to be a force multiplier, with benefits in fiscal '24 to include initial cost savings, organizational and go-to-market effectiveness, more efficient and effective marketing spend and the optionality to consider opportunistic incremental growth investments during the year. We continue to expect Pegasus to generate savings of approximately $20 million in fiscal '24, with additional savings expected from lower inbound freight and commodity costs.

我們對運營盈利增長的展望是由更好的整體利潤率組合、較低的商品和入境貨運成本以及飛馬座的成本節約推動的，飛馬座仍然處於正軌。我們預計 Pegasus 將成為一個力量倍增器，在 24 財年帶來的好處包括初始成本節省、組織和進入市場的有效性、更高效和有效的營銷支出以及考慮年內機會性增量增長投資的選擇。我們仍然預計 Pegasus 在 24 財年將節省約 2000 萬美元，此外，入境貨運和商品成本的降低預計還會帶來額外的節省。

As previously discussed, the Pegasus savings will partially offset several structural headwinds in fiscal '24, including incremental depreciation expense of approximately $12 million before tax related to our new state-of-the-art distribution facility, higher annual incentive compensation expense of approximately $27 million before tax as we reinstate expected expense of target performance and higher interest expense of approximately $15 million before tax as we annualize the increase in interest rates in fiscal '23. This includes our expectation of cumulative incremental rate increases of 100 basis points in fiscal '24.

如前所述，Pegasus 節省的資金將部分抵消 24 財年的一些結構性不利因素，包括與我們最先進的新分銷設施相關的稅前增量折舊費用約 1200 萬美元，年度激勵補償費用增加約 27 美元稅前 1500 萬美元，因為我們恢復了目標績效的預期費用，並且由於我們將 23 財年的利率增長按年計算，稅前利息費用增加了約 1500 萬美元。這包括我們對 24 財年累計增量加息 100 個基點的預期。

Moving on to our tax outlook. We now expect a GAAP effective tax rate range of 21% to 19% for the full fiscal year '24 and a non-GAAP adjusted effective tax rate range of 13.5% to 12.5%.

繼續我們的稅務展望。我們現在預計 24 年整個財年的 GAAP 有效稅率範圍為 21% 至 19%，非 GAAP 調整後的有效稅率範圍為 13.5% 至 12.5%。

In terms of quarterly cadence, we continue to expect the majority of our net sales growth to be concentrated in the third quarter of fiscal '24 and expect a decline of approximately 8% to 6% in the second quarter. This reflects the shift of approximately $5 million in sales from the second quarter into the first quarter that I mentioned earlier. We expect adjusted diluted EPS growth to be concentrated in the third and fourth quarters of fiscal '24 as we benefit from lower inbound freight and commodity costs. We also expect to realize the benefits of debt deleveraging more fully in the second half of the year. Accordingly, we expect a decline in adjusted diluted EPS of 20% to 30% in the first half of fiscal '24, with near-offsetting growth in the second half of the year.

就季度節奏而言，我們繼續預計大部分淨銷售額增長將集中在 24 財年第三季度，並預計第二季度下降約 8% 至 6%。這反映了我之前提到的大約 500 萬美元的銷售額從第二季度轉移到第一季度的情況。我們預計調整後的攤薄每股收益增長將集中在 24 財年的第三和第四季度，因為我們受益於較低的入境貨運和商品成本。我們還預計下半年將更充分地實現債務去槓桿化的好處。因此，我們預計 24 財年上半年調整後攤薄每股收益將下降 20% 至 30%，下半年的增長將接近抵消。

We continue to expect capital asset expenditures of between $45 million and $50 million for fiscal '24, which includes approximately $25 million for the completion of our new distribution facility and the full installation of its state-of-the-art automation equipment. We continue to expect that the final cost of the facility and its equipment will be within our original expectations.

我們仍然預計 24 財年的資本資產支出將在 4500 萬至 5000 萬美元之間，其中包括大約 2500 萬美元用於完成我們的新配送設施和全面安裝最先進的自動化設備。我們仍然預計該設施及其設備的最終成本將在我們最初的預期之內。

With lower CapEx needs in fiscal '24, we continue to expect free cash flow to be in the range of $250 million to $270 million and net leverage ratio improvement to between 2x to 1.85x by the end of fiscal '24. We continue to assess opportunities to further optimize our facility footprint, which we believe could unlock an additional $100 million to $125 million of cash flow that is not currently included in our outlook.

由於 24 財年資本支出需求較低，我們繼續預計到 24 財年末自由現金流將在 2.5 億至 2.7 億美元之間，淨槓桿率將改善至 2 倍至 1.85 倍。我們將繼續評估進一步優化設施佈局的機會，我們相信這可以額外釋放 1 億至 1.25 億美元的現金流，而這些現金流目前尚未包含在我們的展望中。

In summary, we are pleased to reiterate an outlook that we believe is accretive to our current valuation, with strong free cash flow, operational earnings growth and margin expansion despite a challenging consumer environment. We remain very excited about the opportunities that Pegasus provides to drive further performance improvement in fiscal '24 and beyond. Finally, we believe our strong cash flow and asset optimization efforts will allow us to continue to meaningfully reduce our debt leverage and consider capital deployment optionality going forward.

總而言之，我們很高興重申我們認為，儘管消費者環境充滿挑戰，但自由現金流強勁、運營盈利增長和利潤率擴張，我們認為這會增加我們當前的估值。我們仍然對 Pegasus 提供的推動 24 財年及以後業績進一步提高的機會感到非常興奮。最後，我們相信，我們強勁的現金流和資產優化努力將使我們能夠繼續有意義地降低債務槓桿，並考慮未來的資本部署選擇。

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員詢問問題。

(Operator Instructions) Our first question today is from the line of Rupesh Parikh with Oppenheimer.

（操作員說明）我們今天的第一個問題來自 Rupesh Parikh 和 Oppenheimer。

Congrats on a nice quarter. So I just wanted to go back to the Hydro Flask brand. So there seems like there's positives and negatives right now for the brand. So your tumbler launch seems like it's off to good start. At the same time, we are seeing discounting in the channel for the product. So I just wanted to get a sense of just overall health of the brand and your updated expectations for Hydro Flask this year.

恭喜您度過了一個美好的季度。所以我只想回到 Hydro Flask 品牌。因此，目前該品牌似乎既有積極的一面，也有消極的一面。所以你的不倒翁發布似乎有了一個良好的開端。與此同時，我們也看到該產品的渠道打折。所以我只是想了解一下該品牌的整體健康狀況以及您今年對 Hydro Flask 的最新期望。

Great. Noel, please go ahead.

偉大的。諾埃爾，請繼續。

Yes. Rupesh, good to hear your voice. Yes. So on Hydro Flask, I would say, as I outlined in the script, we continue to see consumers shifting from bottles where Hydro Flask is by far the leader to the tumblers in the quarter. But as you outlined, we were really pleased to do an initial soft launch of our travel tumbler in June, so just past the end of the quarter, and we are really encouraged by the early sales results from that. Consumers are reporting, they're really pleased with the functionality of what we've put out there, and we see it as a really nice momentum piece for us in the balance of this fiscal year.

是的。魯佩什，很高興聽到你的聲音。是的。因此，對於 Hydro Flask，我想說，正如我在腳本中概述的那樣，我們繼續看到消費者從 Hydro Flask 迄今為止領先的瓶子轉向本季度的玻璃杯。但正如您所概述的，我們非常高興在 6 月份（也就是本季度末）首次試推出我們的旅行杯，我們對早期的銷售結果感到非常鼓舞。消費者報告說，他們對我們所推出的產品的功能非常滿意，我們認為這對我們本財年的剩餘時間來說是一個非常好的動力。

We also -- I mentioned a couple of other initiatives on Hydro Flask. We greatly enhanced our personalization and customization offerings. We got out there with the bottle return program. So a lot of positive news happening on Hydro Flask right now, and we see that as strong building blocks to strengthen kind of the performance in the back half of the year across the brand in total and especially entering into the tumbler piece of the market that's been growing.

我還提到了關於 Hydro Flask 的其他一些舉措。我們極大地增強了我們的個性化和定制產品。我們推出了瓶子回收計劃。因此，現在 Hydro Flask 上發生了很多積極的消息，我們認為這是加強整個品牌下半年業績的強大基石，特別是進入不倒翁市場一直在成長。

Just to handle the promotional question, Rupesh, I would say the promotional activity is kind of normal for us. We did a MAP pricing holiday during the quarter, and that's pretty much standard. And then we do promotions really to get out of colors that we're discontinuing and get into new colors and new items. And so I would call both of those activities, the MAP program and the kind of rotating into new products, both normal promotional activity.

只是為了解決促銷問題，Rupesh，我想說促銷活動對我們來說很正常。我們在本季度實行了 MAP 定價假期，這幾乎是標準的。然後我們進行促銷活動，真正擺脫我們即將停產的顏色，並推出新顏色和新商品。因此，我將這兩項活動（MAP 計劃和新產品輪換）稱為正常的促銷活動。

Right. And just, Brian, related to Hydro Flask, I believe your expectation was for growth for the full year. Is that still the expectation?

正確的。 Brian，關於 Hydro Flask，我相信您的期望是全年的增長。這仍然是期望嗎？

Slight growth to flattish, I would say, and that's still our expectation. We're -- it's early days on the traveler. We're excited about the traveler, but we have not factored in a meaningful upside into our forecast from it. At this point, we are encouraged by it, but we're going to let it evolve. And I just want to point out, we did a soft launch online. The retailers are very excited about, but we want to let it play out a little bit before we start leaning in more.

我想說，小幅增長到持平，這仍然是我們的預期。我們——旅行者還處於早期階段。我們對旅行者感到興奮，但我們沒有在我們的預測中考慮到它帶來的有意義的好處。在這一點上，我們對此感到鼓舞，但我們將讓它發展。我只想指出，我們在網上進行了試發布。零售商對此感到非常興奮，但我們希望在開始更多投入之前讓它發揮一點作用。

Our next question is from the line of Bob Labick with CJS Securities.

我們的下一個問題來自 CJS 證券的 Bob Labick。

It's Pete Lukas for Bob. You gave us a lot of detail on Project Pegasus, obviously, seeing significant benefits to the margin profile. What has surprised you the most in terms of the rollout, either positively or negatively? And what is the biggest things you've learned so far?

鮑勃是皮特·盧卡斯。您向我們提供了有關 Pegasus 項目的大量詳細信息，顯然，您看到了利潤率的顯著優勢。就推出而言，最令您驚訝的是什麼，無論是積極的還是消極的？到目前為止你學到的最重要的事情是什麼？

Yes. Pete, nice to talk to you and always a pleasure to have CJS represented as well. In terms of Project Pegasus, I think the most positive, as we've mentioned in our prepared remarks, is how well the organization has embraced the full scope. This is not a standard belt-tightening exercise as we've talked from the very beginning back in October for Pegasus. This is a comprehensive restructuring and a reinvention, very similar to what we've done multiple times of always taking the company up to the next level, never waste a good crisis, as they say.

是的。 Pete，很高興與您交談，並且很高興 CJS 也能代表您。就 Pegasus 項目而言，我認為最積極的一點是，正如我們在準備好的發言中提到的那樣，該組織很好地涵蓋了整個範圍。這不是標準的勒緊褲腰帶的做法，正如我們從十月份一開始就針對 Pegasus 所討論的那樣。這是一次全面的重組和重塑，與我們多次所做的非常相似，總是將公司提升到一個新的水平，正如他們所說，永遠不要浪費一次好的危機。

So for me, the single most important thing is how well the organization has embraced it, dug deep and has not only made the structural changes but also aggressively pursuing the specific work of each work stream and their financial targets.

因此，對我來說，最重要的事情是組織如何很好地接受它、深入挖掘，不僅進行結構性變革，而且積極追求每個工作流程的具體工作及其財務目標。

And Noel, I suspect you'll be able to elaborate a bit on the Pegasus momentum.

諾埃爾，我想你能夠詳細說明一下飛馬座的動量。

Yes. I would echo Julien's comments. I think the piece on a program like this is always -- the question mark is how will the organization react. And I'm delighted I mentioned in my remarks, the first-ever North American RMO sales meeting that we just had to see the teams come together. The business unit is very focused on sharpening their brand plans, sharpening their innovation pipeline. The North American RMO and the audience excited about those plans coming forward with new growth opportunities and growth ideas as they look across the full portfolio was very, very heartening and, I think, a testament to the choices that we made in the organizational structure.

是的。我贊同朱利安的評論。我認為關於這樣的計劃的文章總是——問號是組織將如何反應。我很高興在發言中提到，有史以來第一次北美 RMO 銷售會議，我們必須看到團隊聚集在一起。該業務部門非常注重完善其品牌計劃和創新渠道。北美 RMO 和觀眾對這些帶來新的增長機會和增長想法的計劃感到興奮，因為他們審視整個產品組合，非常非常令人振奮，我認為，這證明了我們在組織結構中做出的選擇。

As I look at some of the other work streams, again, SKU rationalization was a big focus area, and the team really took that to a great bottoms-up analytical rigor that has really helped us from a gross margin standpoint on parts of our portfolio. So that's been a real positive as they've embraced that work. We've got a lot more work streams that are still underway that will come. As a reminder, the bulk of the savings comes in fiscal '25 to fuel our initiatives in that time frame. And we're very pleased with the momentum that we see across all of the work streams.

當我審視其他一些工作流程時，再次強調，SKU 合理化是一個重點領域，團隊確實將其進行了自下而上的嚴格分析，從毛利率的角度來看，我們對部分投資組合確實有幫助。所以這是一個真正積極的事情，因為他們接受了這項工作。我們還有更多的工作流仍在進行中，即將到來。提醒一下，大部分節省都來自 25 財年，以推動我們在該時間範圍內的舉措。我們對所有工作流程中看到的勢頭感到非常滿意。

Our next question comes from the line of Olivia Tong with Raymond James.

我們的下一個問題來自 Olivia Tong 和 Raymond James 的對話。

This is Devin Weinstein on for Olivia. Congrats on the better-than-expected quarter. I wanted to ask a little bit more about your outlook for the year, specifically for 2Q, understood on the components impacting -- the $5 million impact on your sales outlook. But you did maintain the EPS guide for the first half to decline 20% to 30%. And I just want to understand some of the dynamics going into your 2Q outlook saying as sequentially, there should be some cost easing. It sounds like selling themself [through or] in a much better place. So outside of maybe the sales comp, what are some of the dynamics impacting that 2Q outlook that would get the first half to be down 20% to 30%?

我是德文·韋恩斯坦 (Devin Weinstein) 替奧利維亞 (Olivia) 發言。祝賀本季度業績好於預期。我想更多地詢問一下你們今年的前景，特別是第二季度的前景，了解影響因素——對你們銷售前景的 500 萬美元影響。但你們確實維持上半年 EPS 指導值下降 20% 至 30%。我只是想了解第二季度前景的一些動態，按照順序，成本應該有所放鬆。這聽起來像是[通過或]在一個更好的地方推銷自己。那麼，除了銷售比較之外，還有哪些因素會影響第二季度的前景，導致上半年下降 20% 到 30%？

Yes. So there are a couple of moving parts in the question. You're referring to sales, and hopefully, that part of sales is clear. Really, the only change in our outlook came from this kind of $5 million shift that went into Q1 we originally expected in Q2. So hopefully, that's clear. And I would say there's no other meaningful moving parts with respect to sales.

是的。所以這個問題中有幾個變化的部分。您指的是銷售，希望銷售的這一部分是清楚的。事實上，我們前景的唯一變化來自我們最初預計在第二季度進入第一季度的 500 萬美元的轉變。希望一切都清楚了。我想說的是，在銷售方面沒有其他有意義的變化。

With respect to adjusted EPS, the main driver -- so there's 2 components, right? We're sticking with our original guidance, which is 20% to 30% down for the full year. After posting Q1, it was a little bit better than expectations. We are expecting some spend shift, some growth investment spending that didn't make sense to make in the first quarter that we now plan for the second quarter. And that's really why for the full first half of the year, we'll stay within the 20% to 30%, even though we were slightly better in the first quarter. We do expect to come down a little bit in Q2 as we spend a little bit more into the strength of good initiatives that we have going, including the tumbler rollout and new introduction.

就調整後的每股收益而言，主要驅動因素——所以有兩個組成部分，對嗎？我們堅持最初的指導，即全年下降 20% 至 30%。發布第一季度後，比預期好一點。我們預計會出現一些支出轉變，一些增長投資支出在第一季度沒有意義，但我們現在計劃在第二季度進行。這就是為什麼在整個上半年，我們將保持在 20% 到 30% 的範圍內，儘管我們在第一季度略好一些。我們確實預計第二季度的業績會有所下降，因為我們在現有的良好舉措上投入了更多的資金，包括不倒翁的推出和新產品的推出。

That makes sense. And if I could just tack on the second part of that question, you guys did call out some of the wildfire dynamics that impacted demand for air purifiers. Just curious what you're seeing quarter-to-date, when we've looked in the past, we've seen a good bump to your sales for some of the heightened wildfire seasons. So curious if you're seeing that same sort of dynamic or perhaps if there's just been more air purifier purchases over the course of COVID and maybe people who want one already have one of the household or if there's area for new customers that enter your brand.

這就說得通了。如果我能解決這個問題的第二部分，你們確實指出了一些影響空氣淨化器需求的野火動態。只是好奇您本季度至今所看到的情況，當我們回顧過去時，我們發現在一些野火加劇的季節，您的銷售額出現了良好的增長。很好奇您是否看到了同樣的動態，或者在新冠疫情期間購買了更多的空氣淨化器，也許想要一台的人已經擁有一台，或者是否有新客戶進入您的品牌的空間。

Yes. In terms of air purification, as we've all seen in the news and experience, the Canadian wildfires have impacted us mostly in May and June. So a lot of that sort of happened after our -- the end of our first quarter. I will note, U.S. wildfires are actually below average at this point in the year. If you think about all of the snow -- heavy snowfall that was out on the West Coast this past winter, it's a slower start, well below kind of the second lowest in the last 10 years from a U.S. standpoint. So high Canada but lower in the U.S., so you've got some offsets that are happening there.

是的。在空氣淨化方面，正如我們在新聞和經驗中看到的那樣，加拿大山火對我們的影響主要集中在五月和六月。所以很多這樣的事情發生在我們的第一季度結束之後。我要指出的是，美國的野火實際上低於今年的平均水平。如果你考慮一下所有的降雪——去年冬天西海岸的大雪，你會發現這是一個較慢的開始，遠低於美國過去十年來第二低的水平。加拿大的溫度很高，但美國的溫度較低，所以那裡發生了一些抵消。

But that said, the air purifier category point of sale in the last couple of months is up. I would say air purification, the category has, relatively speaking, higher retailer inventories. We've talked about in the past in pockets, where there's still some higher inventory coming off of COVID, and this is one of those examples. So the good news is retailers are working through some of that inventory. We did see point-of-sale increases for the category. We also saw some elevated point of sale in the last 4 weeks kind of past the end of the first quarter. We do have inventory, and we're really -- as I said in my remarks, really pleased to be able to help retailers and consumers during the time as it continues.

但話雖如此，過去幾個月空氣淨化器類別的銷售點有所上升。我想說的是，相對而言，空氣淨化這一類別的零售商庫存較高。我們過去曾討論過，由於新冠疫情，口袋裡的庫存仍然較高，這就是其中之一。因此，好消息是零售商正在處理部分庫存。我們確實看到該類別的銷售點有所增加。在第一季度末後的最後 4 週內，我們還看到銷售點有所上升。我們確實有庫存，而且正如我在發言中所說，我們真的很高興能夠在疫情持續期間為零售商和消費者提供幫助。

Super helpful. Congrats again.

超級有幫助。再次恭喜。

Our next question comes from the line of Peter Grom with UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的彼得·格羅姆 (Peter Grom)。

So I have one maybe follow-up and then just kind of my real question, I guess. Just a follow-up on 2Q, just the outlook still implies a pretty wide range for earnings, especially considering we're pretty close to halfway through the quarter. At this point, can you maybe just help us understand the building blocks between the high end and the low end and maybe the key watch points? Or is it kind of fair to say that you would probably expect to be at the stronger end of that range?

所以我想我可能會有一個後續行動，然後就是我真正的問題。只是第二季度的後續行動，只是前景仍然意味著收益的範圍相當廣泛，特別是考慮到我們已接近本季度的一半。現在，您能否幫助我們了解高端和低端之間的構建模塊以及關鍵觀察點？或者公平地說，您可能期望處於該範圍的較強一端？

And then I guess my real question is just shifting gears in consumer demand, obviously, a lot of concern around what that looks like as we move forward. But it seems at least based on what you just delivered this morning that it can be faring better than you expected. So I just -- broad-based question but your portfolio spend in a lot of different categories, can you just give us a sense of what you're seeing around the health of the consumer and broader demand? Are some categories seeing improved performance quicker than you would have anticipated or some more challenged? And just would be curious how the demand environment is evolving versus your expectations, especially considering that there are some other companies that are pointing to a more prolonged period of depressed top line growth.

然後我想我真正的問題只是消費者需求的轉變，顯然，隨著我們的前進，人們對這種情況的很多擔憂。但至少根據你今天早上剛剛交付的內容來看，它的表現似乎比你預期的要好。所以我只是——基礎廣泛的問題，但你的投資組合在很多不同的類別上支出，你能否讓我們了解一下你在消費者健康和更廣泛的需求方面所看到的情況？某些類別的性能改善是否比您預期的要快，或者某些類別面臨的挑戰更大？我只是想知道需求環境與您的預期相比是如何演變的，特別是考慮到還有一些其他公司指出收入增長將持續更長時間的低迷時期。

Peter, Julien here. Thanks for the question. Given there's 2 parts to it, let's split up the answer. So Brian will definitely be able to address the range on Q2, and then we'll talk the demand part just afterwards.

彼得，朱利安在這裡。謝謝你的提問。鑑於它有兩個部分，讓我們分開回答。因此，布萊恩肯定能夠解決第二季度的範圍問題，然後我們將在之後討論需求部分。

Yes, Peter, the wider range is really centered around investment spending and the timing of that investment spending. And there's a lot of moving parts as you called out when you were asking the question about consumer demand. So we have a lot of initiatives going and a lot of positive momentum going in the right direction on things like the traveler and those sorts of things. The timing of when that gets into the retailer and when we really want to drive demand can fluctuate between the second quarter, the third quarter and so on. And so there is a range of outcomes for the second quarter that is largely based on the timing of our investment spend when it will follow exactly and, in a matter of weeks, could make a shift between Q1 and Q2. And that's really what we're dealing with here because that is such a new item, and it's actually hitting retail towards the end of the second quarter, and it will hit some retail before other retail.

是的，彼得，更廣泛的範圍實際上集中在投資支出和投資支出的時間安排上。正如您在詢問有關消費者需求的問題時所指出的那樣，有很多變化的部分。因此，我們在旅行者之類的事情上正在採取很多舉措，並朝著正確的方向邁出很多積極的勢頭。當它進入零售商以及我們真正想要推動需求的時間可能會在第二季度、第三季度等之間波動。因此，第二季度的一系列結果很大程度上取決於我們的投資支出的時間安排，投資支出何時會完全遵循，並且可能在幾週內在第一季度和第二季度之間發生轉變。這確實是我們在這里處理的問題，因為這是一個如此新的產品，它實際上會在第二季度末影響零售業，而且它將先於其他零售業影響一些零售業。

And so hopefully, you can imagine that there's a period of time that could overlap just a matter of several weeks, which could make a difference to the quarters. And that's why there's kind of a wide range of outcomes. We can't perfectly predict when the timing will be exactly of all that. And so there's a little bit of a range there for the second quarter.

因此，您可以想像，有一段時間可能只重疊幾週，這可能會對季度產生影響。這就是為什麼會有各種各樣的結果。我們無法完全預測這一切的具體時間。因此，第二季度存在一些區間。

Great. And on the demand subjects, I think the simplest thing we can say is that everyone on the call, I think, and the market broadly is aware of the choppiness in predictions, the pressure that's on the consumer at a macro level, so the famous inflation and higher interest rates, the higher-for-longer speech that the Fed has reiterated month after month. And in the case of these categories to your specific question, we're in a broad set of categories. So some of them are just feeling the pain of that discretionary reduction as buying pattern shift.

偉大的。關於需求主題，我認為我們可以說的最簡單的事情是，我認為，每個參加電話會議的人以及整個市場都意識到預測的波動性以及宏觀層面上消費者面臨的壓力，因此著名的通脹和利率上升是美聯儲月復一月重申的長期走高言論。對於您的具體問題的這些類別，我們屬於廣泛的類別。因此，隨著購買模式的轉變，他們中的一些人只是感受到了隨意減少的痛苦。

Others like outdoor, for example, are seeing the benefits of the megatrend of outdoors. Prestige beauty is generally doing better, and then the world of COVID, flu, it's -- we're off season right now. It's hard to tell, and these things go up and down. In terms of what it means for us, I think the simplest thing I can say is we just reiterated our sales guidance today, and all of that was considered when we put that number forth.

例如，其他喜歡戶外運動的人正在看到戶外運動大趨勢的好處。名牌美容通常表現更好，然後是新冠肺炎、流感，我們現在正處於淡季。這很難說，而且這些事情會起起落落。就這對我們意味著什麼而言，我認為我能說的最簡單的事情就是我們今天剛剛重申了我們的銷售指導，並且在我們提出這個數字時考慮了所有這些。

Our next question comes from the line of Susan Anderson with Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Susan Anderson。

Very nice job on the quarter. I was curious on the inventory levels. It's nice to see them down so much. I guess are you guys still working towards your goal to be under $400 million by the end of the year? And then just curious on the SKU rationalization and kind of where you're -- like how much of that is completed at this point and how much of it is left for the rest of the year?

本季度的工作非常好。我對庫存水平很好奇。很高興看到他們如此沮喪。我想你們還在努力實現年底前收入低於 4 億美元的目標嗎？然後只是對 SKU 合理化以及您所處的位置感到好奇 - 比如目前完成了多少以及今年剩餘時間還剩下多少？

Yes. I think we're still on track with our goal, the implied in our cash flow range of $250 million to $270 million. Obviously, to be at the $270 million, we'd have to be at the $400 million or maybe slightly below if we could end up maybe a little bit higher than that, which would put us in the $250 million cash flow range for the year. So I think we're comfortably within that range. I -- we -- like I said, we could end up at $410 million, $415 million by the end of the year. If we do that, that would be a good reason for it. It will be because we're leaning into opportunities, and we want to have the inventory to be prepared to shift to those opportunities.

是的。我認為我們仍在實現我們的目標，即我們的現金流量範圍為 2.5 億至 2.7 億美元。顯然，要達到 2.7 億美元，我們必須達到 4 億美元，或者可能略低於這個水平，如果我們最終可能比這個數字高一點的話，這將使我們今年的現金流量達到 2.5 億美元的範圍。所以我認為我們在這個範圍內很舒服。我——我們——就像我說的，到年底我們的收入可能會達到 4.1 億美元、4.15 億美元。如果我們這樣做，那就是一個很好的理由。這是因為我們正在抓住機會，並且我們希望擁有庫存以準備轉向這些機會。

And then if we don't have incremental opportunities like that, then we'd be likely closer to the $400 million. So I think we would toggle within that range by the end of the year, and we're definitely on track to do that.

如果我們沒有這樣的增量機會，那麼我們可能會更接近 4 億美元。所以我認為我們會在今年年底之前在這個範圍內切換，而且我們肯定會做到這一點。

Yes. And then in terms of SKU rationalization, as we mentioned, overall, the SKU rationalization initiative touch the wellness portfolio more than the others, but that's where the impact was felt the greatest, and it did start to impact us in Q1, as we mentioned in the remarks, and I would expect to see that kind of continue, and it's baked into our outlook for the remainder of the year as those choices kind of flow through throughout the remainder of the year. Again, the emphasis is more on wellness than the others, although there's some impacts across the board as we looked -- we really did a comprehensive look, bottoms up of the entire portfolio.

是的。然後就 SKU 合理化而言，正如我們提到的，總體而言，SKU 合理化舉措比其他舉措更多地觸及健康產品組合，但這是影響最大的地方，正如我們提到的，它確實在第一季度開始對我們產生影響我希望看到這種情況繼續下去，並且它已融入我們對今年剩餘時間的展望中，因為這些選擇將貫穿今年剩餘時間。再次強調，與其他方面相比，我們更注重健康，儘管我們看到了一些全面的影響——我們確實進行了全面的審視，對整個投資組合進行了自下而上的研究。

Great. And then if I could just add one follow-up on the hair appliances. It sounds like you mentioned that prestige was performing better. Was that also in the appliances? Are you seeing Drybar perform better than the lower-cost tools? And then I was curious, I know you rolled out that lower-cost tool at Walmart. I was curious how that's performing and then if there's any newness also coming in hair tools as we kind of look to the back half that to maybe rejump-start that category.

偉大的。然後我是否可以在美髮器具上添加一項後續工作。聽起來你提到威望表現得更好了。電器裡也有這種東西嗎？您是否發現 Drybar 的性能優於低成本工具？然後我很好奇，我知道你們在沃爾瑪推出了這種低成本工具。我很好奇它的表現如何，然後美髮工具是否也有任何新東西，因為我們有點期待後半部分，也許會重新啟動該類別。

Yes, sure. So in hair tools, yes, I would say overall, if we look kind of big picture, prestige or the higher-end hair tools are performing better than the kind of mid-tier hair tools. So Drybar, et cetera, in that realm is performing stronger, if you think about kind of a more affluent consumer having more discretionary spend to be able to continue to purchase in those areas. We do have a lot of new innovation coming out. The one I mentioned in the remarks on Drybar is a smooth shot paddle brush that kind of continues up in that one-step insight that has worked so well for us. That's a new one that's coming out there in addition to a range of very different Drybar liquids.

是的，當然。因此，在美髮工具方面，是的，我想說，總的來說，如果我們從大局來看，聲望或高端美髮工具的表現要好於中端美髮工具。因此，如果您考慮到更富裕的消費者擁有更多的可自由支配支出，以便能夠繼續在這些領域進行購買，那麼 Drybar 等在該領域的表現就會更加強勁。我們確實有很多新的創新出現。我在 Drybar 上的評論中提到的是一種光滑的射擊槳刷，它延續了對我們來說非常有效的一步式洞察力。除了一系列截然不同的 Drybar 液體之外，這是一種新產品。

When it comes to the mass part of the business, we have gotten the new planograms in to some of our mass merchandisers that I've mentioned in some of the past quarters. And we're seeing point of sale pick up very nicely as we've gotten that new range in. So we're encouraged by what we're seeing there.

當談到業務的大眾部分時，我們已經為我在過去幾個季度提到的一些大眾商家提供了新的貨架圖。我們看到銷售點的增長非常好，因為我們已經推出了新的產品系列。因此，我們對在那裡看到的情況感到鼓舞。

Our next question is from the line of Anthony Lebiedzinski with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

Nice start to the fiscal year. So just a quick follow-up first. As far as the SKU rationalization, I guess if we were to think about this in baseball terms, are you guys like in the early innings of that process or middle? Or how should we think about that?

本財年開局良好。所以先快速跟進一下。至於 SKU 合理化，我想如果我們用棒球術語來思考這個問題，你們是在這個過程的前幾局還是中間？或者說我們應該如何思考這個問題？

In terms of cadence of impact, Anthony, we're in early innings because we're really just realizing a lower-weighted impact in Q1. It will get a little bit heavier in terms of impact through the remainder of this year. So it just so happens it was kind of spread where the majority of the impact will fall in this fiscal year. It's a little bit lighter in Q1 and get a little bit heavier Q2 through Q4, and then we'll be through it.

就影響節奏而言，安東尼，我們處於早期局，因為我們實際上只是在第一季度實現了較低權重的影響。在今年剩下的時間裡，它的影響將會變得更大一些。因此，碰巧的是，大部分影響將在本財年發生，這是一種擴散。 Q1 輕一點，Q2 到 Q4 重一點，然後我們就會完成它。

Now as we talked about in the past, this is something we're going to continue to do. We don't know at this stage if it will be meaningful enough that we'll continue to call it out going into fiscal year '25 based on whatever we find through the results of the process, but it will be a continuing process that we'll have in future years. But the majority of the impact from this initial SKU rationalization effort will be in fiscal year '24. It was a little lighter in Q1, and it will get a little heavier in the remaining quarters.

正如我們過去談到的，這是我們將繼續做的事情。我們現階段不知道這是否足夠有意義，以至於我們將根據我們通過該過程的結果發現的任何內容繼續在進入 25 財年時繼續宣布這一計劃，但這將是一個持續的過程，我們將未來幾年將會有。但最初的 SKU 合理化工作的大部分影響將出現在 24 財年。第一季度的情況稍微輕一些，在接下來的幾個季度中會變得更重一些。

Got it. If I could squeeze one more question. As far as your outlook for M&A, just how should we think about that? And then as far as acquisition multiples, have you seen any changes?

知道了。如果我能再問一個問題的話。就您對併購的展望而言，我們應該如何看待？那麼就收購倍數而言，您看到了什麼變化嗎？

Yes. So Jack will speak a little bit to acquisition multiples. Just spoiler alert, they're generally coming down. Obviously, interest rates are going up and valuations coming down. It's broadly known but not specifically deal by deal, just as a macro comment.

是的。因此，傑克將談談收購倍數。只是劇透警報，他們通常都會下來。顯然，利率在上升，估值在下降。這是廣為人知的，但不是具體的具體交易，只是作為宏觀評論。

In terms of our capital allocation, which is to me, the broader question, we're very pleased that our strategy is working, which is to reduce our inventory, improve our cash flow. You saw that in the numbers that we reported today where we've made significant progress and not just in this quarter but now also on top of the big progress that we announced in April for Q4 of last fiscal year. As we continue towards the guidance that we reiterated today, it opens up possibilities for additional capital deployment.

就我們的資本配置而言，這對我來說是一個更廣泛的問題，我們很高興我們的戰略正在發揮作用，即減少我們的庫存，改善我們的現金流。您可以在我們今天報告的數字中看到，我們取得了重大進展，不僅在本季度，而且在我們 4 月份宣布的上一財年第四季度的重大進展之上。當我們繼續遵循今天重申的指導方針時，它為額外資本部署提供了可能性。

So per our strategy, M&A on the form of acquisition and also the potential for opportunistic buyback, and we consider these things all the time. In the case of operational needs, we don't, beyond the big warehouse, have another biggie in the short term. So that helps us as well.

因此，根據我們的策略，以收購形式進行的併購以及機會性回購的潛力，我們一直在考慮這些事情。就運營需要而言，除了大倉庫之外，我們短期內不會再有其他大事。這對我們也有幫助。

And I will give it to Jack on the subject of what's out there.

我會將有關現有情況的主題交給傑克。

Yes. So Anthony, we're seeing -- more deal flow has been picking up recently than maybe over the last 6 months and expect that there will be even more as the rest of the balance of this year continues. I think for us, we're going to continue to stay in touch. We're going to look at the different options that are out there. Part of when it's right for us to do it is going to be when the organization is ready, that we're still in the midst of Project Pegasus. It is going really well. And what we don't want to do is create any additional compression. We'd rather do that well, do it right. And then you know what our -- some of our priorities are to get debt levels down.

是的。所以安東尼，我們看到——最近的交易量增加可能比過去 6 個月還要多，並且預計隨著今年餘下時間的繼續，交易量將會增加。我認為對我們來說，我們將繼續保持聯繫。我們將研究現有的不同選項。我們這樣做的正確時機是當組織準備好時，我們仍處於“飛馬計劃”之中。進展非常順利。我們不想做的是創建任何額外的壓縮。我們寧願做得好，做得正確。然後你知道我們的一些優先事項是降低債務水平。

That being said, we're seeing -- with some of the assets that are transacting out there, we are seeing multiples coming down, as Julien had mentioned, and expect that good assets will probably cost a higher multiple than others. But in general, we're seeing multiples going down.

話雖這麼說，我們看到，正如朱利安提到的那樣，對於一些正在交易的資產，我們看到市盈率正在下降，並預計優質資產的市盈率可能會高於其他資產。但總的來說，我們看到倍數正在下降。

Our final question is from the line of Linda Bolton-Weiser with D.A. Davidson.

我們的最後一個問題來自 Linda Bolton-Weiser 和 D.A.戴維森。

Congratulations on a nice quarter. So I was wondering if on the gross margin expansion, it was really strong. And you mentioned there were some -- there was a benefit from lower EPA repackaging costs. Is there any way to quantify the rest of the expansion? Like how much was mix? How -- what was the net of the freight or commodities? Is there any way to quantify the whole gross margin expansion in the quarter?

祝賀您度過了一個美好的季度。所以我想知道毛利率擴張是否真的強勁。你提到有一些 - 較低的 EPA 重新包裝成本有好處。有什麼方法可以量化其餘的擴張嗎？比如混合了多少？運費或商品的淨額是多少？有沒有辦法量化本季度整個毛利率的擴張？

I mean we gave you -- I think it was 180 basis points of expansion related to the EPA, the lack of having those costs year-over-year. So that's roughly half. I think you could -- or a little less than that actually. I think you could split the remainder up between the margin benefits and commodity and freight costs. I think it's fair to kind of do a 50-50 split of the remainder.

我的意思是，我們給了你——我認為這是與 EPA 相關的 180 個基點的擴張，而沒有逐年增加這些成本。所以這大約是一半。我認為你可以——或者實際上比這個少一點。我認為你可以將剩餘部分分成利潤收益和商品和運費成本。我認為將剩餘部分按 50-50 分配是公平的。

Okay. And then I think you kind of mentioned somewhere in your commentary about the facility rationalization, those excess distribution facilities that you have now. Is there any additional movement on what might be done with those or anything to report on that front?

好的。然後我認為您在評論中提到了設施合理化，以及您現在擁有的多餘配送設施。關於如何處理這些或有什麼需要報告的方面有任何其他進展嗎？

Yes. I would say they're at different stages in the process. There is 1, the smaller of the 2 that is further along. We have formal indications of interest and are working towards something that's more definitive, and we're making good progress on that one. So I'd say there's one that if we can make everything aligned, there could be a closing in the third quarter. And then the other one is not as far along, but we're still moving on a very good path. And we'll report -- we'll -- if we have something to report, we'll share that with you at the appropriate time, but we're making good progress on both.

是的。我想說他們處於這個過程的不同階段。有 1 個，是較遠的 2 個中較小的一個。我們已經正式表示有興趣，並且正在努力實現更明確的目標，並且我們正在這方面取得良好進展。所以我想說，如果我們能讓一切保持一致，第三季度可能會結束。另一個則沒有那麼遠，但我們仍然在一條非常好的道路上前進。我們會報告——我們會——如果我們有什麼要報告的，我們會在適當的時候與你們分享，但我們在這兩方面都取得了良好的進展。

There's a big picture comment here. We've been saying for a couple of quarters that with the opening of our new state-of-the-art big facility, the 2-million-square-footer in Tennessee, it creates these opportunities. So hopefully, people are not surprised that we're now optimizing. I think it's where we've used multiple quarters of the footprint. So there's multiple possibilities, as Brian was talking about. And I think it's good news. It's good for ROIC. It's good for efficiency and then ultimately good for cost.

這裡有一個大圖評論。幾個季度以來，我們一直在說，隨著我們在田納西州佔地 200 萬平方英尺的最先進的新大型工廠的開業，它創造了這些機會。所以希望人們不會對我們現在的優化感到驚訝。我認為這是我們使用了四分之一的足蹟的地方。所以正如布萊恩所說，有多種可能性。我認為這是個好消息。這對投資回報率有好處。這有利於效率，最終有利於成本。

Great. And then finally, can I just ask on the Hydro Flask on the consumer shift in preference from bottles to tumblers, like what exactly is driving that? Is that more in-office, sedentary behavior and you want a tumbler instead of the bottle? What is driving the underlying consumer preference at this point?

偉大的。最後，我能否就 Hydro Flask 詢問消費者偏好從瓶子轉向玻璃杯的情況，到底是什麼推動了這一轉變？這是辦公室裡久坐的行為嗎？您想要一個玻璃杯而不是瓶子嗎？目前是什麼推動了潛在的消費者偏好？

Yes. My feeling, Linda, is the functionality of it for a range of different activities that the consumers taking on. I mean I think probably one of the biggest ones is sitting in a cup holder. So as consumers are going from activity to activity, whether that's to the office or to kids' sporting events or to the gym or the grocery store, I mean you name the activities that your average consumer is kind of transporting themselves or their families around fitting into a cup holder having a handle the ease and the preference of drinking from a straw, I think it's the combination of things.

是的。琳達，我的感覺是它對於消費者進行的一系列不同活動的功能。我的意思是，我認為最大的問題之一可能是坐在杯架上。因此，當消費者從一個活動轉到另一個活動時，無論是去辦公室、參加兒童體育賽事、還是去健身房或雜貨店，我的意思是，你列出了普通消費者將自己或家人帶到適合的地方的活動。放入帶有手柄的杯架、方便性以及用吸管飲用的偏好，我認為這是多種因素的結合。

Now any one of these things can be available in a bottle, but there's something about this particular travel tumbler design that kind of encapsulates all of them in one: fits in a cup holder, has the handle, has the straw and it's just really resonated and fit into consumers' lives.

現在，這些東西中的任何一種都可以裝在瓶子裡，但這種特殊的旅行玻璃杯設計有一種將所有這些都封裝在一個瓶子中：適合杯架，有手柄，有吸管，它真的很能引起共鳴並融入消費者的生活。

This concludes our question-and-answer session. I'll turn the floor back to management for closing remarks.

我們的問答環節到此結束。我將請管理層作結束語。

Great. Thank you, operator, and thank you, everyone, for joining us today. We're very excited about the quarter and beginning to demonstrate the consistency that I know everyone is looking for starting with us. We look forward to speaking with many of you in the coming days and weeks. There are several forums, whether they're conferences or NDRs, and we're out of our quiet period now. So we're looking forward to talking about them -- start talking during those and also other conversations with many who would like them. So with that, we say thank you, and have a wonderful day.

偉大的。謝謝運營商，也謝謝大家今天加入我們。我們對這個季度感到非常興奮，並開始展示出我知道每個人都在尋找的一致性。我們期待在未來幾天和幾週內與你們中的許多人交談。有幾個論壇，無論是會議還是 NDR，我們現在已經結束了靜默期。因此，我們期待著談論它們——在這些以及其他對話中開始與許多喜歡它們的人進行交談。因此，我們向您表示感謝，並祝您有美好的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。