Helen of Troy Ltd (HELE) 2024 Q2 法說會逐字稿

Greetings. Welcome to Helen of Troy's Second Quarter 2024 Earnings Call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to Jack Jancin, Senior Vice President of Corporate Development. Thank you. You may begin.

問候。歡迎參加 Helen of Troy 的 2024 年第二季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。我現在將會議交給企業發展資深副總裁傑克‧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 Second Quarter Fiscal 2024 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; 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 CFO will review the financials in more detail and our financial outlook for fiscal 2024. 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 2024 財年第二季財報電話會議。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。公司執行長 Julien Mininberg 先生；公司營運長Noel Geoffroy女士將評論本季的財務表現和當前趨勢。然後，公司財務長 Brian Grass 先生將更詳細地審查財務狀況以及我們 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.

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」、「預期」以及其他類似的詞語都是識別前瞻性陳述的詞語。

Forward-looking statements are subject to a number of risks and uncertainties that could cause anticipated results to differ materially from the actual results. This conference call may also include information that may be considered non-GAAP financial information.

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。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。

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.

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 home page and then the Press Releases tab. I will now turn the conference call over to Mr. Mininberg.

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。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. Starting with our second quarter results. Today, we reported net sales and adjusted earnings per share that came in at the high end of our expectations. I'm pleased with the consistency of our results as we work towards returning to growth. I continue to be impressed with how well our organization is executing the ambitious set of initiatives we announced at the beginning of fiscal '24. This includes delivering our revenue expectations on the majority of our leadership brands and strong performance in international as well as advancing a wide range of efficiency improvement projects.

謝謝你，傑克。大家早安，感謝您加入我們。從我們第二季的業績開始。今天，我們報告了淨銷售額和調整後每股收益，達到了我們預期的上限。在我們努力恢復成長的過程中，我對我們結果的一致性感到滿意。我們的組織執行我們在 24 財年年初宣布的一系列雄心勃勃的舉措的情況仍然給我留下了深刻的印象。這包括實現我們對大多數領先品牌的收入預期和在國際上的強勁表現，以及推動廣泛的效率改進項目。

During the quarter, we made further progress on gross margin improvement and cash flow generation. We significantly expanded gross margins as we realize the benefits of lower inbound freight costs and SKU rationalization. We also generated positive free cash flow as we continue to diligently manage our inventory and deployed a portion of our cash to repurchase approximately $50 million of our shares. For perspective, our initiative to streamline inventory over the past several quarters has resulted in a reduction of over $200 million compared to year ago levels. The progress on free cash flow has also been significant, delivering a $325 million improvement in the first half of this fiscal year versus the first half of fiscal '23.

本季度，我們在毛利率改善和現金流生成方面取得了進一步進展。隨著我們認識到入境貨運成本降低和 SKU 合理化的好處，我們的毛利率顯著提高。由於我們繼續努力管理庫存並部署部分現金回購約 5000 萬美元的股票，我們也產生了正的自由現金流。從長遠來看，我們過去幾季精簡庫存的舉措已導致與去年同期相比減少了 2 億多美元。自由現金流的進展也很顯著，與 23 財年上半年相比，本財年上半年實現了 3.25 億美元的改善。

Our second quarter results not only demonstrate strong execution across our entire organization, they also demonstrate resiliency as we manage through the continued challenging macro consumer environment in which consumers are continuing to shift spending away from discretionary products and more towards discretionary experiences, such as travel and entertainment.

我們第二季的業績不僅展示了我們整個組織的強大執行力，還展示了我們在應對持續充滿挑戰的宏觀消費環境時的彈性，在這種環境中，消費者繼續將支出從非必需產品轉向非必需體驗，例如旅行和娛樂。

That shift in consumer spending patterns has been exacerbated by persistent inflation that forces consumers to make tough choices on all types of spending.

持續的通貨膨脹加劇了消費者支出模式的轉變，迫使消費者對所有類型的支出做出艱難的選擇。

Subsequent to the end of the second quarter, we closed on the sale of our office and 400,000 square foot distribution facility in El Paso, Texas, as part of our previously announced initiative to improve the efficiency of our assets. We intend to move to a new facility in El Paso to house our U.S. headquarters, which we expect will be a long-term rental property.

第二季末後，我們完成了位於德州埃爾帕索的辦公室和 40 萬平方英尺分銷設施的出售，這是我們先前宣布的提高資產效率舉措的一部分。我們打算搬到埃爾帕索的新工廠作為我們的美國總部所在地，我們預計這將是一個長期出租的房產。

With El Paso being our largest shared service hub, we expect it to continue to play an ongoing important role for the company and community. We strongly value the work and passion of our dedicated associates in El Paso and are proud of our 55-year legacy in the area.

埃爾帕索是我們最大的共享服務中心，我們希望它繼續為公司和社區發揮持續的重要作用。我們非常重視埃爾帕索員工的工作和熱情，並為我們在該地區 55 年的遺產感到自豪。

In conjunction with the sale of the El Paso facility, we are also making some organizational moves as part of our ongoing efforts to operate more efficiently. Noel and Brian will provide more detail on these actions during their remarks.

在出售埃爾帕索工廠的同時，我們也進行了一些組織調整，作為我們持續努力提高營運效率的一部分。諾埃爾和布萊恩將在演講中提供有關這些行動的更多細節。

Turning to our outlook. We are maintaining our full year expectations, which include returning to net sales and adjusted earnings per share growth in the fourth quarter of this fiscal year and significant improvements to our gross margin, cash flow and net leverage ratio.

轉向我們的展望。我們維持全年預期，包括本財年第四季淨銷售額和調整後每股盈餘恢復成長，以及毛利率、現金流和淨槓桿率顯著改善。

Our outlook includes our expectation of a continued slower economy and pressure on consumer spending levels and patterns, especially for some discretionary categories.

我們的前景包括我們對經濟持續放緩的預期以及消費者支出水準和模式面臨的壓力，特別是對於某些非必需品類別。

During the quarter, we also made significant progress on planning for the future. This includes further progress executing Pegasus, finalizing our next strategic plan and continuing a smooth transition to Noel as we prepare for her to become CEO in March.

本季度，我們在未來規劃方面也取得了重大進展。這包括進一步執行 Pegasus、敲定我們的下一個戰略計劃以及繼續平穩過渡到 Noel，因為我們正在為她在 3 月擔任執行長做準備。

I am very pleased by the performance of our team on the Pegasus restructuring work streams. Pegasus remains nicely on track as we continue executing and delivering its strategic and financial goals. The work of the Pegasus teams reiterates the strength of Helen of Troy's people and culture as we deliver the outcomes needed to help manage through the current challenging macro environment. And we believe Pegasus' savings will provide significant additional fuel to fund our strategic investments.

我對我們團隊在 Pegasus 重組工作流程中的表現感到非常滿意。隨著我們繼續執行和實現其策略和財務目標，Pegasus 仍保持良好的發展動能。 Pegasus 團隊的工作重申了特洛伊海倫人民和文化的力量，我們提供了幫助管理當前充滿挑戰的宏觀環境所需的成果。我們相信 Pegasus 的節省將為我們的策略性投資提供大量額外的燃料。

During our October 17 Investor Day, we will discuss our next strategic plan in detail which will guide the company's actions during the next year on. It is designed to deliver sustainable, profitable growth, create value for our shareholders and is grounded on our timeless purpose, vision and values.

在 10 月 17 日投資者日期間，我們將詳細討論我們的下一個策略計劃，該計劃將指導公司明年的行動。它旨在實現可持續的獲利成長，為我們的股東創造價值，並以我們永恆的目標、願景和價值觀為基礎。

Before I turn the call over to Noel, I would like to comment on the outcome of our CFO search. Today, we announced that Brian Grass, who returned to Helen of Troy as Interim CFO in April has reached an agreement with the company to remain in the CFO position on an ongoing basis. Noel made a great selection, and I believe she and Brian will make a great team as the company embarks on its next chapter following my retirement. I will now turn the conversation over to Noel.

在將電話轉給諾埃爾之前，我想對我們財務長搜尋的結果發表評論。今天，我們宣布，於 4 月重返 Helen of Troy 擔任臨時財務長的布萊恩·格拉斯 (Brian Grass) 已與公司達成協議，將繼續擔任財務長。諾埃爾（Noel）做出了很好的選擇，我相信她和布萊恩（Brian）將成為一支出色的團隊，隨著我退休後公司開啟新篇章。我現在將談話轉給諾埃爾。

Thank you, Julien, and good morning, everyone. I'm so delighted to welcome Brian back to Helen of Troy's leadership team on a more permanent basis. We conducted a national search, and I concluded Brian is the ideal choice to partner with me now and when I assumed the CEO position next fiscal year. Brian and I have worked closely together since his return in April, and I greatly value his experience and perspective. He is a strategic business leader, a collaborative thought partner and a proven public company CFO with an extraordinary record of delivering results and creating value throughout his career. We believe his results-oriented mindset and deep company experience will help us deliver for all our stakeholders as we enter our next phase as a growth-oriented company. I know Brian shares my passion, energy and enthusiasm for the opportunities we have ahead of us at Helen of Troy.

謝謝朱利安，大家早安。我非常高興地歡迎 Brian 長期回到 Helen of Troy 的領導團隊。我們進行了全國性的搜尋，我得出的結論是，布萊恩是現在和我下一財年擔任執行長職位時與我合作的理想選擇。自從布萊恩四月回來以來，我和他一直密切合作，我非常重視他的經驗和觀點。他是一位策略業務領導者、協作思想合作夥伴和一位久經考驗的上市公司財務官，在整個職業生涯中取得了成果並創造了價值。我們相信，當我們進入以成長為導向的公司的下一階段時，他以結果為導向的心態和豐富的公司經驗將幫助我們為所有利益相關者提供服務。我知道布萊恩和我一樣對海倫特洛伊所面臨的機會充滿熱情、活力和熱情。

As Julian mentioned, our Pegasus initiatives remain on track and have enabled improved efficiency and effectiveness in fiscal '24. We also expect Pegasus savings will help fuel our brands in fiscal '25 and beyond. As you may recall, one of the seven major Pegasus work streams is all about streamlining our organization.

正如 Julian 所提到的，我們的 Pegasus 計畫仍在正軌上，並提高了 24 財年的效率和有效性。我們也預計 Pegasus 的節省將有助於在 25 財年及以後為我們的品牌提供動力。您可能還記得，Pegasus 的七個主要工作流程之一就是精簡我們的組織。

During the second quarter, we initiated a change that aligns with the creation of the Beauty & Wellness segment. With the sale of the El Paso facility, we determined that this is the right time to geographically consolidate our U.S. Beauty business. Effective in fiscal '25, our U.S. Beauty business, which is currently in El Paso, Texas and Irvine, California, will move to the Boston, Massachusetts area to co-locate with our wellness business. This colocation is the next step in the company's initiative to streamline, simplify and enable enhanced collaboration to deliver greater innovation and realize commercial and product platform synergies between beauty and wellness.

在第二季度，我們發起了一項與美容與健康部門的創建一致的變革。隨著埃爾帕索工廠的出售，我們確定現在是在地理上整合我們的美國美容業務的最佳時機。自 25 財年起，我們目前位於德克薩斯州埃爾帕索和加利福尼亞州歐文的美國美容業務將搬到馬薩諸塞州波士頓地區，與我們的健康業務並存。此次託管是該公司精簡、簡化和加強協作的舉措的下一步，以提供更大的創新並實現美容與健康之間的商業和產品平台協同效應。

Now turning to our second quarter business results. As Julien highlighted, our consolidated net sales and adjusted EPS were at the better end of our expectations. In recent months, we achieved market share gains in core categories in a number of our brands, including OXO, Osprey, Pur and Vicks as well as Braun and Revlon internationally where we have visibility.

現在轉向我們第二季的業務業績。正如朱利安所強調的那樣，我們的綜合淨銷售額和調整後每股收益超出了我們的預期。近幾個月來，我們在多個品牌的核心類別中實現了市場份額的成長，包括 OXO、Osprey、Pur 和 Vicks，以及我們在國際上有知名度的 Braun 和 Revlon。

Taking a look at the performance of Home and Outdoor, net sales were essentially flat to the prior year period. Starting with OXO, we are seeing signs that overall U.S. point-of-sale is beginning to stabilize in key home categories. While the kitchen utensils category continued to decline compared to the pandemic peak, the rate of decline has slowed. OXO showed strength in the quarter as the brand benefited from new distribution gains in part due to key customers moving to capture market share from Bed Bath & Beyond after the retailers' bankruptcy. OXO also benefited from new product introductions such as the Grilling Prep and Carry System. Our test of OXO SoftWorks at Walmart is also continuing to perform ahead of expectations. Overall, we expect OXO to perform well in the balance of the fiscal year, fueled by new product introductions, distribution gains and select club programs.

從家居和戶外的表現來看，淨銷售額與去年同期基本持平。從 OXO 開始，我們看到有跡象表明美國主要家居類別的整體銷售點開始穩定。雖然廚具品類與疫情高峰期相比持續下降，但下降速度已放緩。 OXO 在本季表現強勁，該品牌受益於新的分銷收益，部分原因是主要客戶在零售商破產後轉向從 Bed Bath & Beyond 奪取市場份額。 OXO 也受惠於燒烤準備和攜帶系統等新產品的推出。我們在沃爾瑪對 OXO SoftWorks 的測試也持續超出預期。總體而言，我們預計 OXO 在新產品推出、分銷收益和精選俱樂部計劃的推動下，將在本財年剩餘時間內表現良好。

Consumers continue to turn to OXO as a trusted source of quality products that marries innovation with purpose. One example is in cooking, where the brand helps to bring consumers joy of cooking to life, from the everyday cook to the gourmet chefs. Feeding consumers' passion for cooking is our chefs and residence program, a collaborative series featuring inspiring creators with one common goal, bring a better experience to your kitchen.

消費者繼續將 OXO 視為將創新與目標相結合的值得信賴的優質產品來源。一個例子是在烹飪領域，該品牌幫助消費者將烹飪的樂趣帶入生活，從日常廚師到美食廚師。我們的廚師和居住計劃激發了消費者對烹飪的熱情，這是一個由鼓舞人心的創作者組成的合作系列，他們的共同目標是為您的廚房帶來更好的體驗。

We were thrilled to introduce the latest additions to this exceptional culinary series a few weeks ago. These new shafts are Baked by Melissa's owner, Melissa Ben-Ishay and the celebrated James Beard award-winning chef, Joseph Johnson, also known as Chef JJ.

幾週前，我們很高興向大家介紹這個非凡烹飪系列的最新內容。這些新軸心由 Melissa 的主人 Melissa Ben-Ishay 和著名的 James Beard 獲獎廚師 Joseph Johnson（也稱為主廚 JJ）烘焙。

Turning to Hydro Flask. The broader insulated beverage category continued to be skewed toward tumblers with a further decline in the insulated bottle subcategory. As we noted on our July call, we soft launched our new travel tumbler on June 21, exclusively on hydroflask.com to a strong reception. The launch drove traffic to the website, and we benefited from a halo effect in our base business, including an increase in personalized orders. We expanded online distribution of our travel tumbler in late August, and I'm pleased to say it continues to resonate well with consumers. The product was ranked #1 new release in water bottles and #1 new release in sport and outdoor on Amazon.

轉向水瓶。更廣泛的保溫飲料類別繼續偏向玻璃杯，保溫瓶類別進一步下降。正如我們在 7 月電話會議中指出的那樣，我們於 6 月 21 日在 Hydroflask.com 上獨家軟發布了新款旅行杯，並獲得了熱烈反響。這次發布增加了網站的流量，我們受益於基礎業務的光環效應，包括個人化訂單的增加。我們在八月底擴大了旅行杯的線上分銷範圍，我很高興地說它繼續引起消費者的良好共鳴。該產品在亞馬遜水瓶新類別中排名第一，在運動和戶外新類別中排名第一。

We began further rollout to retailers and started to show up on shelf in September with continued ramp-up in October. We also recently launched our new insulated sport bottle with an ergonomic shape that fits as well in your hand at the gym as it does in the bottle cage of your bike. We believe the Hydro Flask travel tumbler, sport bottle and other innovations position us well for the upcoming holiday season.

我們開始向零售商進一步推出，並於 9 月開始上架，並在 10 月繼續增加。我們最近也推出了新型隔熱運動水壺，其形狀符合人體工學，既適合在健身房握在手中，也適合放在自行車的水壺架中。我們相信 Hydro Flask 旅行杯、運動水壺和其他創新產品將為我們在即將到來的假期做好準備。

Moving now to Osprey. The brand achieved strong growth in the quarter compared to the prior year period, fueled by accelerated travel demand and our improved inventory position compared to fiscal 2023 when COVID-related factory closures curtailed supply. Osprey was a standout in the quarter as greater supply, coupled with new product introductions and engaging marketing contributed to strength in the U.S. technical, travel and lifestyle categories, a strong endorsement of the brand's relevance to consumers. Internationally, the brand is also performing very well with growth in key regions of Great Britain and Germany. As a reminder, approximately half of Osprey sales are outside the U.S.

現在轉向魚鷹。與去年同期相比，該品牌在本季度實現了強勁增長，這得益於旅行需求的加速以及我們的庫存狀況與2023 財年相比有所改善，當時與新冠肺炎相關的工廠關閉導致供應減少。 Osprey 在本季度表現出色，因為供應量增加，加上新產品的推出和引人入勝的營銷，增強了美國技術、旅行和生活方式類別的實力，有力地認可了該品牌與消費者的相關性。在國際上，該品牌的表現也非常出色，在英國和德國的主要地區都有成長。提醒一下，魚鷹銷售的大約一半是在美國境外。

At the recent Outdoor magazine industry event in Germany, consumers awarded Osprey second place in the backpack category for the third year in a row. High phrase in an important market with demanding consumers. We continue to expect growth from Osprey in the back half of the fiscal year in both the backpack core and in the on-trend travel pack adjacency. Switching gears now to our Beauty & Wellness segment. Net sales declined 10.4%, driven primarily by SKU rationalization and softness in humidification, heaters and fans, but were in line with our expectations.

最近在德國舉行的戶外雜誌行業活動中，消費者連續第三年將 Osprey 評為背包類別第二名。在擁有苛刻消費者的重要市場中的高調。我們繼續預期 Osprey 在本財年後半段在背包核心產品和流行的旅行包週邊產品領域都將實現成長。現在轉向我們的美容與健康部分。淨銷售額下降 10.4%，主要是由於 SKU 合理化以及加濕、加熱器和風扇的疲軟推動，但仍符合我們的預期。

In our beauty portfolio, Revlon and Hot tools appliances drove sales ahead of our expectations in the quarter. We are seeing Revlon trends improve as the brand achieved incremental distribution within major brick-and-mortar retailers. In prestige liquids, our newest brand, Curlsmith, continued to grow strongly versus prior year, and our new Hot Tools liquid line is meeting expectations at Ulta with two additional SKUs and continued in-store support coming in the balance of the year.

在我們的美容產品組合中，露華濃和熱工具電器推動本季的銷售超出了我們的預期。我們看到露華濃的趨勢有所改善，因為該品牌在主要實體零售商中實現了增量分銷。在高端液體產品中，我們的最新品牌 Curlsmith 與去年相比繼續強勁增長，我們新的 Hot Tools 液體產品線滿足了 Ulta 的預期，新增了兩個 SKU，並在今年餘下時間繼續提供店內支援。

The beauty portfolio continues to distinguish itself in delivering superior consumer benefits earning important industry recognition. In September alone, both Drybar, Crown Tonic and Revlon One-Step Volumizer were recognized in Allura's Best of Beauty Awards, while Drybar smooth shot, hot styling brush was selected by People Magazine as the best tool for delivering salon-like results.

美容產品組合繼續在提供卓越的消費者利益方面脫穎而出，贏得了重要的行業認可。僅在 9 月份，Drybar、Crown Tonic 和 Revlon One-Step Volumizer 均榮獲 Allura 最佳美容獎，而 Drybar smooth shot、hot 造型刷則被《人物》雜誌評選為實現沙龍般效果的最佳工具。

This adds to the four separate industry awards our brands have already received this year. In our wellness portfolio, water purification was a standout in the quarter, driven by both category growth as well as sequential market share improvement for Pur faucet mount systems and picture systems. Helen also launched an exclusive picture and faucet mount collaboration with Beautiful by Drew Barrymore available only at Walmart.

這使得我們的品牌今年已經獲得了四個獨立的行業獎項。在我們的健康產品組合中，水淨化在本季度表現出色，這得益於 Pur 水龍頭安裝系統和圖片系統的品類增長以及市場份額的連續提高。海倫還與德魯巴里摩爾 (Drew Barrymore) 的 Beautiful 合作推出了獨家圖片和水龍頭支架，僅在沃爾瑪發售。

In addition, our North American RMO team secured new placement of one of our Pur Pictures and Family Dollar. This is a promising opportunity in one of the fastest-growing and relevant channels in this inflationary environment.

此外，我們的北美 RMO 團隊還獲得了 Pur Pictures 和 Family Dollar 之一的新安置。在當前通膨環境下，這是成長最快且相關的管道之一，這是一個充滿希望的機會。

As it relates to the International Trade Commission action Brita filed against our Pur products, we are extremely pleased with the recent decision terminating the investigation in favor of Pur. The commission found there was no violation by our company because the Brita patent at issue is invalid. We look forward to continuing to serve our American consumers' need for lead contaminant reducing filters.

由於這與國際貿易委員會 Brita 針對我們的 Pur 產品提起的訴訟有關，我們對最近決定終止調查以支持 Pur 感到非常高興。本委員會認為我公司不存在違法行為，涉案Brita專利無效。我們期待繼續滿足美國消費者對減少鉛污染物的過濾器的需求。

Air purification was also a strong contributor to sales in the quarter. As we mentioned on our July call, the Canadian wildfires that impacted the U.S. drove incremental air purification device and filter sales as well as inventory improvements. The humidification category was soft in the quarter compared to the prior year period when consumers experienced the summer of '22 COVID surge of Omicron and its variance. Despite the softer category sales, Vicks grew share in the quarter.

空氣淨化也是本季銷售的重要貢獻者。正如我們在 7 月的電話會議中所提到的，影響美國的加拿大野火推動了空氣淨化設備和過濾器的銷售以及庫存的改善。與去年同期相比，本季加濕類別表現疲軟，當時消費者經歷了 22 年夏季 Omicron 的新冠疫情激增及其變化。儘管品類銷售疲軟，但維克斯的份額在本季有所增長。

In thermometry, we continue to see post-COVID normalization in the U.S. category, while international sales remained strong. We remain the branded market leader in the U.S. with our Braun and Vicks thermometers, and Braun remains the strong branded market leader in Ear thermometers in most of the countries where it is sold.

在測溫領域，我們持續看到新冠疫情后美國類別的正常化，而國際銷售仍然強勁。我們憑藉博朗 (Braun) 和維克斯 (Vicks) 體溫計繼續成為美國品牌市場的領導者，博朗 (Braun) 在大多數銷售國家的耳溫計領域仍然是強大的品牌市場領導者。

More broadly, on international, sales growth was driven by Braun and Osprey as both brands did very well in both the U.K. and Germany. Revlon is also having success in major European markets. We continue to strengthen our international operations and our new integrated and optimized sales and marketing organizational design and structure was implemented as of September 1. International remains a strong growth avenue for us, and we are excited about the opportunities we see ahead of us outside the U.S.

更廣泛地說，在國際市場上，銷售成長是由博朗和魚鷹推動的，因為這兩個品牌在英國和德國都表現出色。露華濃在歐洲主要市場也取得了成功。我們繼續加強我們的國際業務，我們新的綜合和優化的銷售和行銷組織設計和結構已於9 月1 日實施。國際仍然是我們強勁的成長途徑，我們對我們在國外以外看到的機會感到興奮我們。

I'd like to close my prepared comments today with a few thoughts on the company's next strategic plan, which we will be discussing at our Investor Day planned for October 17 at the NASDAQ market site in New York. During our Investor Day, we'll also be outlining our specific long-term targets. We see considerable opportunity to deliver growth and profit improvements by focusing on delighting consumers with our outstanding family of brands and further increasing the efficiency and effectiveness of our business units, regional market organizations and global shared services. We also see opportunity to continue setting the right capital priorities to help accelerate shareholder value creation.

我想以對公司下一個戰略計劃的一些想法來結束我今天準備好的評論，我們將在計劃於 10 月 17 日在紐約納斯達克市場舉行的投資者日上討論該計劃。在投資者日期間，我們還將概述我們的具體長期目標。我們看到了透過專注於用我們出色的品牌系列取悅消費者以及進一步提高我們的業務部門、區域市場組織和全球共享服務的效率和效益來實現成長和利潤改善的巨大機會。我們也看到了繼續設定正確資本優先順序的機會，以幫助加速股東價值創造。

Our leadership team and I look forward to sharing our ambitious goals with you. We hope you can join either in person or online for the webcast. And with that, I'd like to hand the call over to Brian.

我和我的領導團隊期待與您分享我們的宏偉目標。我們希望您可以親自或在線參加網路廣播。說到這裡，我想把電話轉給布萊恩。

Good morning, everyone. Thank you, Noel. I appreciate the kind words, but more importantly, your trust, and I echo your sentiments on our opportunity to deliver for all stakeholders. I'm excited to come out of retirement and partner with you in my role as CFO as we enter our next era. I'm looking forward to working alongside you, Julian and the rest of the leadership team as we look to finish fiscal '24 strong and launch our next multiyear strategic plan. I hope to see everyone at our Investor Day in a couple of weeks, where we will share more of our plan to maximize the opportunities in front of the company and create long-term shareholder value.

大家，早安。謝謝你，諾埃爾。我感謝你們的善意之言，但更重要的是你們的信任，我也贊同你們對我們為所有利害關係人提供服務的機會的看法。我很高興能夠從退休生活中走出來，並以財務長的身份與您合作，迎接我們進入下一個時代。我期待與您、朱利安和領導團隊的其他成員一起工作，我們希望以強勁的勢頭完成 24 財年並啟動下一個多年戰略計劃。我希望在幾週後的投資者日見到大家，屆時我們將分享更多我們的計劃，以最大限度地利用公司面前的機會並創造長期股東價值。

Moving on to the second quarter. I'm pleased to report results at the better end of our expectations. We significantly improved gross margin, generated strong cash flow and deployed capital to repurchase our shares while also taking steps to strengthen our balance sheet and further improve our asset efficiency. Consolidated net sales decreased 5.7% compared to growth of 9.7% in the same period last year or growth of 3.4% on a 2-year stack. Second quarter net sales were favorable to the 8% to 6% decline to be provided in our outlook in July. As a reminder, our outlook includes expected year-over-year declines from our SKU rationalization efforts and the impact of the Bed Bath and Beyond bankruptcy.

繼續第二季。我很高興地報告結果，結果超出了我們的預期。我們顯著提高了毛利率，產生了強勁的現金流，並部署資本回購股票，同時也採取措施強化資產負債表，進一步提高資產效率。綜合淨銷售額下降 5.7%，去年同期成長 9.7%，兩年累計成長 3.4%。第二季淨銷售額有利於我們在 7 月的展望中預測的 8% 至 6% 的下降。提醒一下，我們的展望包括我們的 SKU 合理化努力以及 Bed Bath 和 Beyond 破產的影響所帶來的預期同比下降。

Despite the impacts of higher inflation and interest rates, we are seeing signs that key categories are beginning to stabilize, and we were pleased to drive point of sale growth with expanded distribution, new product introductions and better supply of inventory. Gross profit margin improved 420 basis points to 46.7% compared to 42.5% in the same period last year, in line with our expectations for the quarter.

儘管受到通膨和利率上升的影響，但我們看到關鍵品類開始穩定的跡象，我們很高興透過擴大分銷、推出新產品和改善庫存供應來推動銷售點成長。毛利率較去年同期的 42.5% 提高 420 個基點至 46.7%，符合我們對該季度的預期。

Year-over-year improvement was due to lower inbound freight costs, the favorable impact of SKU rationalization, lower inventory reserve expense, a more favorable customer mix in home and outdoor and the favorable comparative impact of EPA compliance costs of 130 basis points incurred in the same period last year. GAAP operating margin for the quarter was 9.5% compared to 9% in the same period last year.

同比改善的原因在於入境貨運成本降低、SKU 合理化的有利影響、庫存儲備費用降低、家庭和戶外客戶組合更有利，以及 EPA 合規成本降低 130 個基點的有利比較影響。去年同期。本季 GAAP 營運利潤率為 9.5%，去年同期為 9%。

On an adjusted basis, operating margin declined 120 basis points to 12.7%. The decrease primarily reflects an increase in annual incentive compensation expense, higher marketing expense, increased distribution and depreciation expense due to the opening of our new state-of-the-art distribution facility in Tennessee, unfavorable operating leverage and a less favorable product mix in beauty and wellness.

調整後的營業利益率下降 120 個基點至 12.7%。減少主要反映了年度激勵補償費用的增加、營銷費用的增加、由於我們在田納西州開設新的最先進的分銷設施而增加的分銷和折舊費用、不利的經營槓桿以及不太有利的產品組合。美麗與健康。

These factors were partially offset by lower inbound and outbound freight costs, a decrease in inventory reserve expense, the favorable impact of SKU rationalization in a more favorable customer mix than home and outdoor. On a segment basis, Home and Outdoor adjusted operating margin decreased 180 basis points to 17.7% and driven by increased annual incentive compensation expense, higher distribution and depreciation expense due to the opening of the new distribution facility and increased marketing expense. These factors were partially offset by lower inbound freight costs and a more favorable customer mix.

這些因素被較低的進出境貨運成本、庫存儲備費用的減少、SKU 合理化的有利影響以及比家庭和戶外更有利的客戶組合所部分抵消。按部門劃分，家庭和戶外業務調整後營業利潤率下降 180 個基點至 17.7%，原因是年度激勵補償費用增加、新分銷設施開業導致的分銷和折舊費用增加以及營銷費用增加。這些因素被較低的入境貨運成本和更有利的客戶組合部分抵消。

Adjusted operating margin for Beauty and Wellness decreased 110 basis points to 7.9%, primarily due to an increase in annual incentive compensation expense, higher marketing expense, unfavorable operating leverage and a less favorable product mix. These factors were partially offset by lower inbound and outbound freight costs, reduced inventory reserve expense, decreased distribution expense and the favorable impact of SKU rationalization.

美容與健康業務調整後營業利潤率下降 110 個基點至 7.9%，主要是由於年度激勵補償費用增加、行銷費用增加、經營槓桿不利以及產品組合較差。這些因素被較低的進出境運費、減少的庫存儲備費用、減少的分銷費用以及 SKU 合理化的有利影響部分抵消。

Net income was $27.4 million or $1.14 per diluted share. Non-GAAP adjusted diluted EPS decreased 23.3% to $1.74 per share, primarily due to higher interest expense and lower adjusted operating income. We continue to generate strong cash flow with cash from operations of $36.7 million in the second quarter. Year-to-date cash flow from operations was $158 million, which is an improvement of $233 million year-over-year.

淨利潤為 2740 萬美元，即稀釋後每股收益 1.14 美元。非 GAAP 調整後攤薄每股收益下降 23.3% 至每股 1.74 美元，主要是由於利息支出增加和調整後營業收入減少。我們持續產生強勁的現金流，第二季營運現金流達 3,670 萬美元。年初至今，營運現金流為 1.58 億美元，年增 2.33 億美元。

We ended the quarter with total debt of $845 million, which is a slight increase on a sequential basis despite the repurchase of $50 million of our stock in the quarter. Our net leverage ratio was 2.68x compared to 2.56x at the end of the first quarter and 3.16x at the same time last year.

本季結束時，我們的總債務為 8.45 億美元，儘管本季回購了 5,000 萬美元的股票，但債務總額比上一季略有增加。我們的淨槓桿率為 2.68 倍，而第一季末為 2.56 倍，去年同期為 3.16 倍。

As Julian and Noel mentioned, Subsequent to the end of the second quarter, we closed on the sale of our El Paso, Texas distribution and office facility for total proceeds of $51 million. Concurrently, we entered into an agreement to lease back the office facility for a period of up to 18 months, substantially rent free. We expect to recognize a gain on the sale of approximately $34 million in SG&A during the third quarter of fiscal '24, of which approximately $18 million will be recognized in Beauty & Wellness and $16 million in home and outdoor.

正如朱利安和諾埃爾所提到的，第二季末後，我們完成了德州埃爾帕索分銷和辦公設施的出售，總收益為 5,100 萬美元。同時，我們簽訂了一項協議，回租辦公設施，期限最長為 18 個月，基本上免租金。我們預計在 24 財年第三季的 SG&A 銷售中將確認約 3,400 萬美元的收益，其中約 1,800 萬美元將在美容與健康領域確認，1,600 萬美元將在家庭和戶外領域確認。

Turning to our outlook for fiscal '24. We are maintaining our full year expectations for net sales, adjusted EPS, adjusted EBITDA, free cash flow and ending net leverage ratio. We still anticipate a continued slower economy and uncertainty in consumer spending patterns, especially for some discretionary categories. Although we've seen a general decrease in retailer inventory, our outlook includes the expectation of cautious retail ordering patterns during the third quarter and a more normalized ordering in the fourth quarter.

轉向我們對 24 財年的展望。我們維持對淨銷售額、調整後每股盈餘、調整後息稅折舊攤銷前利潤、自由現金流量和期末淨槓桿率的全年預期。我們仍預期經濟將持續放緩，消費者支出模式存在不確定性，尤其是某些非必需品類別。儘管我們看到零售商庫存普遍下降，但我們的展望包括第三季零售訂購模式謹慎以及第四季度訂購更正常化的預期。

We continue to expect consolidated net sales between $1.965 billion and $2.05 billion in fiscal '24, which continues to reflect the estimated unfavorable year-over-year impact of SKU rationalization and the bankruptcy of Bed Bath & Beyond of approximately 3.4% combined.

我們繼續預期 24 財年的合併淨銷售額將在 19.65 億美元至 20.5 億美元之間，這繼續反映出 SKU 合理化和 Bed Bath & Beyond 破產預計帶來的同比不利影響合計約為 3.4%。

In terms of our net sales outlook by segment, we expect a home and outdoor decline of 1.7% to growth of 1% and the beauty and wellness decline of 8% to 5.8%.

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%，成長 1%，美容和健康用品將下降 8%，至 5.8%。

As noted in our earnings release issued this morning, we have updated our expectations regarding Project Pegasus charges. We now estimate lower total pretax restructuring charges over the duration of the plan of approximately $60 million to $65 million, which we now expect to be completed during fiscal '25. This compares favorably to our previous estimate of approximately $85 million to $95 million which was initially expected to be substantially completed by the end of fiscal '24.

正如我們今天早上發布的財報中所指出的，我們更新了對 Pegasus 專案費用的預期。我們現在估計該計劃期間的稅前重組費用總額將降低約 6,000 萬至 6,500 萬美元，我們現在預計將在 25 財年完成。這與我們先前估計的約 8,500 萬至 9,500 萬美元相比是有利的，最初預計該估計將在 24 財年末基本完成。

The reduction in estimated restructuring charges is due to a favorable revision in our assessment of the impact of a potential exit from one of our businesses. Partially offset by an increase from the beauty and wellness geographic consolidation referred to in our earnings release issued this morning.

預計重組費用的減少是由於我們對一項業務的潛在退出影響的評估進行了有利的修正。我們今天早上發布的財報中提到的美容和健康地理整合的成長部分抵消了這一增長。

Factoring in the reduction in expected restructuring charges as well as the gain on the sale of the El Paso facility, we expect to recognize in the third quarter. We now expect an increase in GAAP diluted EPS to $6.36 to $7.03 for the full year compared to our previous expectation of $3.81 to $4.67. We continue to expect non-GAAP adjusted diluted EPS in the range of $8.50 to $9, which reflects additional year-over-year expense from the restoration of annual incentive compensation expense to target levels as well as higher interest and depreciation expense totaling approximately $1.77 net of tax.

考慮到預期重組費用的減少以及出售埃爾帕索設施的收益，我們預計將在第三季確認。我們現在預計全年 GAAP 攤薄後每股收益將增至 6.36 美元至 7.03 美元，而我們之前的預期為 3.81 美元至 4.67 美元。我們繼續預期非GAAP 調整後攤薄每股收益在8.50 美元至9 美元之間，這反映了年度激勵薪酬費用恢復至目標水平而產生的額外同比費用，以及利息和折舊費用的增加，淨額總計約1.77 美元的稅。

Moving on to our tax outlook. We now expect a GAAP effective tax rate range of 20% to 18% for the full fiscal year and a non-GAAP adjusted effective tax rate range of 14.5% to 13.5%.

繼續我們的稅務展望。我們現在預計整個財年的 GAAP 有效稅率範圍為 20% 至 18%，非 GAAP 調整後的有效稅率範圍為 14.5% 至 13.5%。

In terms of quarterly cadence, we now expect net sales growth to be concentrated in the fourth quarter of fiscal '24, and a decline in net sales of approximately 4% to 2% in the third quarter. We continue to expect to realize the benefits of debt deleveraging and lower inbound freight and product costs more fully in the second half of the year.

就季度節奏而言，我們目前預計淨銷售額成長將集中在2024財年第四季度，而第三季度淨銷售額下降約4%至2%。我們仍然預計下半年將更充分地實現債務去槓桿化以及降低入境運費和產品成本的好處。

Accordingly, we expect growth in adjusted diluted EPS in the range of 1.5% to 12% in the second half of fiscal '24, with that growth highly concentrated in the fourth quarter. The company now expects adjusted diluted EPS to be roughly flat in the third quarter, reflecting the expectation of more cautious retail order patterns in the short term, a timing shift in the realization of some cost of goods sold savings into the fourth quarter and an expected increase in growth investments in the third quarter.

因此，我們預計 2024 財年下半年調整後攤薄每股收益將成長 1.5% 至 12%，其中成長高度集中在第四季。該公司目前預計第三季調整後攤薄後每股收益將大致持平，反映出短期內零售訂單模式更加謹慎的預期、部分銷售成本節省的實現時間轉移到第四季度以及預期第三季度增長投資有所增加。

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 in the full installation of its state-of-the-art automation equipment. We still expect that the final cost of the facility and its equipment will be largely in line with our original expectations.

我們仍預計 24 財年的資本資產支出將在 4,500 萬至 5,000 萬美元之間，其中包括約 2,500 萬美元用於完成我們的新配送設施，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基本符合我們最初的預期。

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 our net leverage ratio to be between 2x to 1.85x by the end of fiscal '24.

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，淨槓桿率將在 2 倍至 1.85 倍之間。

In closing, I am pleased with our business performance year-to-date which keeps us on track to achieve our full year financial objectives. I'm encouraged by our progress in advancing key initiatives while navigating the pressured consumer environment as well as the structural headwinds of higher annual incentive compensation depreciation and interest expense. Year-to-date, we've improved our gross profit margin by 410 basis points, maintained our adjusted EBITDA margin despite structural headwinds and unfavorable operating leverage. Generated $137 million in free cash flow, accelerated debt repayment and return capital to shareholders.

最後，我對我們今年迄今的業務表現感到滿意，這使我們能夠實現全年財務目標。我對我們在推進關鍵舉措方面取得的進展感到鼓舞，同時應對充滿壓力的消費者環境以及更高的年度激勵補償折舊和利息支出的結構性阻力。今年迄今為止，我們的毛利率提高了 410 個基點，儘管存在結構性阻力和不利的營運槓桿，但仍保持了調整後的 EBITDA 利潤率。產生 1.37 億美元的自由現金流，加速債務償還並向股東返還資本。

We also took steps to further strengthen our balance sheet and improve our asset efficiency, culminating with the sale of the El Paso facility after the end of the quarter. We remain excited about the opportunities that Pegasus provides to drive further performance improvement. We look forward to sharing our longer-term strategic initiatives and financial objectives with you during our Investor Day. And with that, I'll turn it back to the operator for questions.

我們也採取措施進一步加強資產負債表並提高資產效率，最終在本季末出售了埃爾帕索工廠。我們對 Pegasus 提供的推動進一步性能改進的機會仍然感到興奮。我們期待在投資者日期間與您分享我們的長期策略計劃和財務目標。然後，我會將其轉回給接線員詢問問題。

(Operator Instructions) Our first question is from 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。

Congratulations to Brian. So glad to hear it, and we're looking forward to continuing to work with you.

祝賀布萊恩。很高興聽到這個消息，我們期待繼續與您合作。

Thanks, Bob. Me too.

謝謝，鮑伯。我也是。

It's very exciting. And congrats to all on another solid quarter. I wanted to start with one of your last comments there, Brian, about the change in the Pegasus costs, if I wrote it down quickly, as a result of the impact of a potential exit from one of your businesses, could you maybe elaborate on that comment or tell me if I heard it correctly?

這是非常令人興奮。恭喜大家又一個穩定的季度。布萊恩，我想從您最後的評論之一開始，關於飛馬座成本的變化，如果我快速寫下來，由於您的一項業務可能退出的影響，您能否詳細說明一下該評論或告訴我我是否聽對了？

That's correct. So in the original estimates of the restructuring charges, there was and amounts designated for our consideration of a potential exit from a business that's currently in the portfolio today. We are still considering that exit, but we have revised and updated our assessment of the opportunities for that exit and have concluded that it would not result -- our belief is it would not result in a restructuring charge, whereas the initial assessment that was performed that there was some likelihood that there could be a range of disposal costs and exit costs as a result. But we, again, have updated and revised that and don't feel that we have that potential today. And so we decided that we should take it out of the restructuring cost range.

這是正確的。因此，在重組費用的初步估計中，我們指定了一些金額來考慮從目前投資組合中現有業務的潛在退出。我們仍在考慮退出，但我們已經修改和更新了對退出機會的評估，並得出結論認為，這不會導致重組費用，而我們進行的初步評估因此可能會產生一系列處置成本和退出成本。但我們再次更新和修改了這一點，並認為我們今天沒有這種潛力。因此我們決定將其排除在重組成本範圍之外。

Got it. Does that mean we might hear more about this -- I'll drop this in a second, at the upcoming Analyst Day? Or is this -- I don't know, what's the other change there? Might we learn more soon? Or what's the timing on when you guys will decide, I guess, that -- is that (inaudible)

知道了。這是否意味著我們可能會聽到更多相關資訊——我會在即將到來的分析師日放棄這個話題？還是──我不知道，還有什麼改變？我們可以盡快了解更多嗎？或者你們什麼時候會做出決定，我猜，是這樣（聽不清楚）

Yes. I mean we continue to work on this project. We do not have anything to report at this point in time. I think it's more likely going to be in the first quarter of fiscal '25 when we are able to share something with you.

是的。我的意思是我們將繼續致力於這個專案。目前我們沒有任何可報告的內容。我認為更有可能是在 25 財年第一季度，屆時我們能夠與您分享一些內容。

Yes. Within a year, we'll be on the other side it one way or the other. It's good news is it lowers the restructuring charges now. It's good news on a total portfolio basis, and we have something report, we definitely will speak more.

是的。一年之內，我們就會以某種方式站在另一邊。好消息是它現在降低了重組費用。就整個投資組合而言，這是個好消息，我們有一些報告，我們肯定會說更多。

Okay. Great. And then I just wanted to kind of go back -- my first question was going to be really on the focus on Pegasus. Obviously, you're making a lot of progress there. And on the sales front, the new regional marketing organization, I think you discussed in the press release some distribution gains already there. So maybe give us a sense of any progress positive surprises or anything that's turning out to be a little harder than you thought as a result of the new North American RMO.

好的。偉大的。然後我只是想回去 - 我的第一個問題實際上是關於 Pegasus 的焦點。顯然，你在那裡取得了很大的進步。在銷售方面，我認為您在新聞稿中討論了新的區域行銷組織已經存在的一些分銷收益。因此，也許可以讓我們感受到任何進展、積極的驚喜，或者由於新的北美 RMO 而導致比您想像的更困難的事情。

Yes. Sure, Bob. This is Noel, good to hear from you this morning. I would say, as you indicated, the North American regional market organization was one of the biggest choices and changes that we made with the Pegasus restructuring. And as you called out, and I mentioned in my remarks, and we'll actually speak more about this at Investor Day. As we have our leader, Ron Anderskow with us that day. But we have -- we did this so that we could look for white space distribution opportunities across the portfolio, looking at either customers where we might play with some of our brands, but not all of them, and we saw an opportunity to scale our presence with them or new customers, new distribution that we could go after with this organization kind of solely focused on that.

是的。當然，鮑伯。我是諾埃爾，很高興今天早上收到你的來信。我想說，正如您所指出的，北美區域市場組織是我們在飛馬重組中做出的最大選擇和改變之一。正如您所呼籲的，我在發言中提到過，我們實際上將在投資者日更多地討論這一點。因為那天我們有我們的領袖 Ron Anderskow 和我們在一起。但我們這樣做是為了在整個產品組合中尋找空白分銷機會，著眼於我們可能使用我們的一些品牌（但不是全部）的客戶，並且我們看到了擴大我們的品牌規模的機會。與他們或新客戶的存在，我們可以與這個組織一起追求的新分銷，這種組織只專注於這一點。

So we have started to pick up some of those things. We have talked about increasing some of our shelf space in beauty, mass retailers. We've talked about dollar distribution, Family Dollar distribution on Pur, I mentioned that today. So we are getting some of those wins. And I think as we look at the back half of this year and in particular, quarter 4, we'll continue to see some of those things layer in, which is part of what gives us confidence in what we're looking at in quarter 4. Some of the results of that move.

所以我們已經開始著手處理其中的一些事情。我們已經討論過增加美容、大眾零售商的一些貨架空間。我們已經討論了 Pur 上的美元分配、家庭美元分配，我今天提到了這一點。所以我們正在取得一些勝利。我認為，當我們回顧今年下半年，特別是第四季度時，我們將繼續看到其中一些事情，這讓我們對本季度的情況充滿信心。4. 這一舉措的一些結果。

Challenges wise, I don't know probably the biggest thing is just as always, when you're moving organization and people are reporting to different leaders, et cetera, just the settling in period. But I've actually been really delighted at how the teams come together. They were just -- that leadership team was put together a week or so ago. We had a big national sales meeting a couple of months ago. So the energy and the enthusiasm of that team as a single organization has been really fantastic.

就挑戰而言，我不知道最大的事情可能是一如既往，當你改變組織，人們向不同的領導報告時，等等，只是適應期。但實際上我對這些團隊如何走到一起感到非常高興。他們只是——大約一周前，領導團隊就組建好了。幾個月前，我們召開了一次大型的全國銷售會議。因此，作為一個組織，團隊的活力和熱情確實非常出色。

Yes. By design, it's continuity even though the restructures and all the ways just said, that the people and the leadership externally focusing to the teams is largely the same and on purpose by design. So not only the way people adapted, as Noel says, but what the market sees when we sell at the power of the scale and all the other means. There's a further side benefit to it that the business units are even more focused on the consumer. So that obsession becomes even more innovation and more focused as opposed to handling the sales market facing -- shopper facing part.

是的。從設計上來說，它是連續性的，儘管重組和剛才所說的所有方式，外部關注團隊的人員和領導層基本上是相同的，並且是有意設計的。因此，正如諾埃爾所說，不僅是人們適應的方式，還有當我們利用規模和所有其他手段進行銷售時市場所看到的情況。它還有一個額外的好處，就是業務部門更關心消費者。因此，這種迷戀變得更加創新和更加專注，而不是處理面向銷售市場的部分——面向購物者的部分。

Okay. Super. And last one, I promise, I'll jump back in queue. And just -- I mean you just mentioned innovation there. Can you give us a sense of new product introductions going forward versus how they've compared in the past? Because obviously, we're kind of, as you said, poised to resume growth very shortly, and I think that's probably a big part of it. But where do you stand on the innovation pipeline and expectations for new product introductions going forward versus how they've looked?

好的。極好的。最後一個，我保證，我會插回隊列。我的意思是你剛才提到了創新。您能否向我們介紹未來推出的新產品與過去的比較情況？因為顯然，正如您所說，我們準備很快恢復成長，我認為這可能是其中的重要組成部分。但是，與過去相比，您對創新管道和對未來新產品推出的期望有何看法？

Yes. Certainly, we continue to feel innovation is very important in all of our segments, both new product innovation as well as what I call commercial innovation, new claims, new ways to position our brands and our products in the marketplace or new ways of reaching the consumer from a marketing standpoint. So I continue to see a lot of emphasis on that. In fact, as Julian just mentioned, that was one of the reasons we went with the organization structure we did. We've got business units now fully focused on consumers, brands, innovation so that we can take that to the next level, and that is underway. We've got some great innovation in the market now. OXO has always had some terrific innovation the Grilling Prep and Carry, the fridge organizers that have come out this year, continued coffee. Innovation has been strong. Osprey continues to go into adjacent categories like travel. We've also put out in the market.

是的。當然，我們仍然認為創新在我們所有的細分市場中都非常重要，包括新產品創新以及我所說的商業創新、新主張、在市場中定位我們的品牌和產品的新方法或達到目標的新方法。從行銷的角度來看消費者。所以我仍然看到人們非常重視這一點。事實上，正如朱利安剛才提到的，這也是我們採用我們現有組織結構的原因之一。我們的業務部門現在完全專注於消費者、品牌和創新，這樣我們就可以將其提升到一個新的水平，而這一切正在進行中。我們現在在市場上有一些偉大的創新。 OXO 一直有一些了不起的創新，今年推出的 Grilling Prep and Carry 冰箱整理器繼續提供咖啡。創新勢頭強勁。 Osprey 繼續涉足旅遊等相鄰類別。我們也已經推出市場了。

It's not quite out for sale yet, but announced launches in the bike for Osprey, which is a really interesting new vesture for that brand. Hydro Flask, of course, we launched the soft launch for the travel tumbler in the last quarter. We've now ramped up distribution there and just launched a new Hydro Flask sport bottle, that's a unique shape. And then across the Beauty wellness portfolio, many new formulas on Drybar and Curlsmith in particular, addressing a lot of consumer needs.

它尚未完全上市，但已宣布推出 Osprey 自行車，這對該品牌來說是一款非常有趣的新裝備。當然，我們在上個季度推出了 Hydro Flask 旅行杯的軟發布。我們現在加大了在那裡的分銷力度，並剛剛推出了一款新的 Hydro Flask 運動水壺，其形狀獨特。然後，在美容健康產品組合中，尤其是 Drybar 和 Curlsmith 上的許多新配方，滿足了許多消費者的需求。

So we continue to have really a lot of innovation across the portfolio, and I continue to anticipate more of that on both the product and the commercial side going forward. And we'll talk more about that in our Investor Day on the 17th as well.

因此，我們的產品組合中仍然有很多創新，我繼續預計未來在產品和商業方面會有更多創新。我們也將在 17 日的投資者日詳細討論這一點。

Our next question is from Rupesh Parikh with Oppenheimer.

我們的下一個問題來自魯佩什·帕里克和奧本海默。

So I just wanted to go back to your commentary on inventory destocking. I was curious if you can provide more color in terms of where you're seeing this categories class day trade. And then your confidence in being getting back to a more normalized inventory ordering in Q4?

所以我只想回到你對去庫存的評論。我很好奇您是否可以提供更多關於您在哪裡看到此類類別日間交易的資訊。那麼您對第四季度恢復更加正常的庫存訂購有信心嗎？

So yes, and repression might be focusing on our kind of honing of the quarterly cadence and as we get basically greater visibility. We are seeing cautious ordering patterns in the short term as retailers factor in things like student loan impact. And keep in mind, a lot of them are ending their fiscal years generally in December and January. Retail inventory in our view, is at debt generally low levels, which is why we are seeing Q4 ordering patterns, more in line with the first half of the year.

所以是的，壓制可能會集中在我們對季度節奏的磨練上，並且我們基本上會獲得更大的知名度。由於零售商考慮到學生貸款影響等因素，我們看到短期內的訂購模式會變得謹慎。請記住，他們中的許多人通常會在 12 月和 1 月結束財政年度。我們認為，零售庫存的債務水平普遍較低，這就是為什麼我們看到第四季度的訂購模式與上半年更加一致。

I want to clarify that we said more normalized in the press release. And I think what we're really trying to say is more in line with the first half of the year, but we see Q3 being slightly below that.

我想澄清一下，我們在新聞稿中說過要更加正常化。我認為我們真正想說的是更符合今年上半年的情況，但我們認為第三季的情況略低於這一水平。

I also kind of want to point out that the Q3 comparison is a 10.6% decline in the prior year, whereas the Q4 comparison is a 16.7% decline. So that's part of the explanation as to why we expect Q4 to be stronger against that comparison. We also have had some isolated supply pinches on certain components that are going -- we expect to hurt Q3, but we'll definitely benefit Q4 as we come out of those.

我還想指出，第三季與前一年相比下降了 10.6%，而第四季則下降了 16.7%。這就是為什麼我們預計第四季會比這一比較更強的部分解釋。我們也對某些正在發生的組件出現了一些孤立的供應緊張——我們預計這會損害第三季度，但當我們走出這些困境時，我們肯定會使第四季度受益。

And then we have secured distribution gains that we've talked about in the past, and those were secured in the first half of the year, but those are going to layer into the back half of the year and will be more fully weighted in the fourth quarter. We're also -- and we called it out, we made more marketing investments in Q2. We expect to make even more marketing investments in Q3, which we also called out when we tried to shape kind of the view of our guidance for our EPS guidance for Q3. And we expect more drive from those marketing investments in Q4. And so we really kind of just see this as a honing of our quarterly cadence as we get greater visibility and get halfway through the year. I hope that all makes sense.

然後，我們已經獲得了我們過去討論過的分配收益，這些收益是在今年上半年獲得的，但這些收益將在今年下半年分層，並將在下半年得到更充分的權重。第四季。我們也指出，我們在第二季進行了更多的行銷投資。我們預計在第三季進行更多的行銷投資，當我們試圖形成對第三季每股收益指引的看法時，我們也指出了這一點。我們預計第四季的行銷投資將帶來更多推動力。因此，我們確實認為這是對季度節奏的磨練，因為我們獲得了更大的知名度並進入了今年的一半。我希望一切都有意義。

No, that's helpful. So it sounds like the overall demand backdrop is fairly consistent with what you guys thought maybe last quarter for the full year. Is that a fair characterization?

不，這很有幫助。因此，聽起來整體需求背景與你們對全年上季的預期相當一致。這是一個公平的描述嗎？

I think it's fair. There's obviously puts and takes and a lot of shifting and moving around. But generally speaking, I'd say that's fair.

我認為這是公平的。顯然有很多的調整和調整以及大量的轉移和移動。但總的來說，我認為這是公平的。

Yes. I think generally, we see -- as we talk, I mean, consumers are making choices and where they spend their money. And that's been the case and what we assumed as we kind of came into this year. So we don't see major changes in kind of their -- they look at inflation as they look at the student loan repayments, some of the things that Brian mentioned, we don't see major changes in that as we go through the back half of the year.

是的。我認為總的來說，我們看到——正如我們所說，我的意思是，消費者正在做出選擇以及他們把錢花在哪裡。這就是我們今年進入時的情況和假設。因此，我們沒有看到他們的重大變化——他們在關注學生貸款償還時看待通膨，布萊恩提到的一些事情，當我們回顧後面時，我們沒有看到重大變化。半年。

Our next question is from Susan Anderson with Canaccord Genuity.

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

Let me send my congrats to Brian, too. It's nice to have you on board. I guess maybe just as you look at the beauty business, it sounded like hair tools are starting to rebound, particularly at mass with Revlon. I'm curious what you're seeing kind of in the prestige category, particularly Drybar and if you're seeing any rebound there? And then what you're thinking about for new innovation in the category in the back half?

讓我也向布萊恩表示祝賀。很高興您的加入。我想也許就像你看看美容產業一樣，聽起來美髮工具正在開始反彈，尤其是露華濃的大眾產品。我很好奇你在聲望類別中看到了什麼，特別是 Drybar，以及你是否看到了任何反彈？那麼您在後半段的品類中有何新的創新想法呢？

Yes, Susan. Good to hear from you. So I would say in Prestige, what we continue to see is -- we see a lot of positive momentum in our liquids business, and I mentioned a couple of the innovations there that are doing particularly well. I would say our tool business is. We've got some innovation out there. It's not as strong right now as the liquid business. I would say the consumer is looking to make some choices on where to spend money, the liquids is where we're seeing more action. We've got a thickening spray that's doing quite well, first control spray, these sorts of things, other things that are performing. I see a lot more innovation on tools coming in the future as we look forward. But those liquids are what are performing best for us right now.

是的，蘇珊。很高興聽到你的消息。所以我想說，在 Prestige 中，我們繼續看到的是——我們在液體業務中看到了很多積極的勢頭，我提到了一些表現特別好的創新。我想說我們的工具業務是。我們有一些創新。它現在不像流動性業務那麼強大。我想說的是，消費者希望在花錢的地方做出一些選擇，液體是我們看到更多行動的地方。我們有一種效果很好的增稠噴霧，首先是控制噴霧，諸如此類的東西，還有其他正在表現的東西。展望未來，我看到未來會有更多工具創新。但這些液體目前對我們來說表現最好。

Okay. Great. And then maybe just a follow-up on just kind of the cadence of the sales and inventory levels. I'm curious just how comfortable you're feeling about inventory levels at retail. Last year, obviously, we had a lot of consolidation. I guess how are you feeling going into the holiday season just in the channel in general?

好的。偉大的。然後也許只是對銷售和庫存水準的節奏進行跟進。我很好奇您對零售庫存水準的感覺如何。顯然，去年我們進行了許多整合。我想您在頻道中進入假期季節時感覺如何？

Just a general holiday outlook. Is that what you're asking?

只是一般的假期展望。這就是你問的嗎？

Yes. Just in terms of inventory levels out there, I mean, with the sales getting shifted into fourth quarter, I mean, do you feel like there's still kind of pockets of higher inventory? Do you guys feel comfortable with where you're at and then just also the industry in general?

是的。就庫存水準而言，我的意思是，隨著銷售轉移到第四季度，我的意思是，您是否覺得仍然存在較高​​的庫存？你們對自己所處的位置以及整個產業感到滿意嗎？

Yes. I would say inventory levels, as Brian mentioned, aren't at very high levels in retail right now. They're relatively low and somewhat in line with consumer consumption. We've seen in a couple of places, I would say, more in the seasonal businesses like cough, cold where retail -- a couple of retailers have done less of a quarter 2 load in and want to do more of a quarter 3, quarter 4 replenishment model on some of those items like Vicks humidifiers and our consumables with Vicks. The good news is where we've got ample supply this year more supply this year than we had in the prior year. So we're ready for that when those orders come.

是的。我想說，正如布萊恩所提到的，目前零售業的庫存水準並不是很高。它們相對較低，並且在一定程度上符合消費者的消費。我想說，我們在一些地方看到了更多的季節性業務，例如咳嗽、感冒等零售業——一些零售商已經減少了四分之一的 2 負荷，並希望增加 3 季度的負荷，其中一些商品（例如Vicks 加濕器和我們的Vicks 消耗品）的第四季補貨模型。好消息是，我們今年的供應充足，今年的供應比去年更多。因此，當訂單到來時，我們已做好準備。

I think holiday, we continue to see good interest in -- coming to your prior question, we see good interest in Drybar and Curlsmith kits. Kits always do very well during the holiday season. So the combination of tool and some of these new liquids that are doing well, those sorts of things are what we're preparing and getting strong traction on from retailers on the parts of our business that are more gift holiday in nature.

我認為假期期間，我們仍然看到人們對 Drybar 和 Curlsmith 套件產生了濃厚的興趣——回到你之前的問題。假期期間，套件總是表現出色。因此，工具和一些表現良好的新液體的結合，這些就是我們正在準備的東西，並且在我們的業務中，本質上更像是節日禮品的部分，得到了零售商的強烈關注。

Okay. Great. That's helpful. And then I guess just last, just on kind of the M&A environment and as you guys get closer to that 2x leverage target, how are you feeling about potentially being able to buy something again? And just curious if you're seeing any attractive opportunities out there?

好的。偉大的。這很有幫助。然後我想最後，就併購環境而言，當你們越來越接近 2 倍槓桿目標時，你們對能夠再次購買東西的感覺如何？只是好奇您是否看到了任何有吸引力的機會？

I think that our leverage is coming down in line or maybe even slightly ahead of our expectations. So that's positive and puts us in a good position. I think as we end the year and get below 2x, we're definitely in a position to be able to make an acquisition. But the other part of your question is what are we seeing out there/ I would say there is a flow of assets being available, but not a lot that meet our criteria. I would say the market is not strong in that regard currently in terms of quality assets that we would seriously consider that meet our criteria. I don't know Jack is here as well. Maybe you want to add something, Jack?

我認為我們的槓桿率正在下降，甚至可能略高於我們的預期。所以這是積極的，讓我們處於有利的位置。我認為，當我們在年底時股價跌至 2 倍以下時，我們絕對有能力進行收購。但你問題的另一部分是我們在外面看到了什麼/我會說有可用的資產流，但符合我們標準的資產並不多。我想說，就我們會認真考慮符合我們標準的優質資產而言，目前市場在這方面並不強勁。我不知道傑克也在這裡。也許你想添加一些東西，傑克？

I think Brian's got it just right. There is more flow that is starting to come in versus what it's been in the last 6 months. But items or assets that fit the criteria and things that we are looking for. We're not seeing those yet, but we're going to continue to look, and when we find it, we would certainly lean into one when the time is right and inventory is ready.

我認為布萊恩說得恰到好處。與過去 6 個月相比，現在開始出現更多的流量。但符合我們正在尋找的標準的物品或資產。我們還沒有看到這些，但我們將繼續尋找，當我們找到它時，我們肯定會在時機成熟且庫存準備就緒時傾向於使用它。

You've seen us before, Susan, it's Julian here. we're picky. So as prices come down, in the market, the equilibrates all that you just heard were not eager dependence on the wrong asset. We're excited to find the right one and we're quite picky on such.

你以前見過我們，蘇珊，我是朱利安。我們很挑剔。因此，隨著價格下跌，在市場上，您剛才聽到的所有均衡並不是對錯誤資產的急切依賴。我們很高興能找到合適的，而且我們對此非常挑剔。

Our next question is from Olivia Tong with Raymond James.

我們的下一個問題是由 Olivia Tong 和 Raymond James 提出的。

Great. A couple of clarification questions first. Just on the element sell-through, I just want to understand on the Q3 versus Q4. Is the decline in Q3 due to retailers expecting lower sales and they're adjusting their orders appropriately, but the lease of inventory on hand doesn't change? Or are they actually looking to hold less inventory because they don't -- it's more of a forward indicator that they think that they don't need as much inventory to drive the sales?

偉大的。首先要澄清幾個問題。就元素銷售而言，我只想了解第三季與第四季的情況。第三季的下滑是否是因為零售商預期銷售量下降，適當調整訂單，但庫存租賃情況沒有改變？或者他們實際上希望持有更少的庫存，因為他們不這樣做——這更多的是一個前瞻性指標，表明他們認為他們不需要那麼多庫存來推動銷售？

Yes. And I think it could be a combination of the two. I think they're definitely forming an expectation of what they're expecting for demand and then maybe being cautious in their ordering, reflecting what they are seeing. I also see a general trend of them wanting to generally hold less inventory. And I'm not talking about huge weeks on hand adjustments, but I am on the margin, they would like to expose themselves to a little bit less risk as they end their fiscal year.

是的。我認為這可能是兩者的結合。我認為他們肯定對需求形成了預期，然後可能在訂購時保持謹慎，反映了他們所看到的情況。我還看到他們普遍希望持有較少庫存的總體趨勢。我不是說巨大的手頭調整，但我處於邊緣狀態，他們希望在結束財政年度時將自己面臨的風險減少一點。

So I would say it's a combination of those two things, but I also want to make the point that we're not talking about wild inventory adjustments and things like that, that would have occurred last year. I think it's more on the margin. But that -- those marginal adjustments do have an impact enough for us to need to adjust our revenue guidance for the third quarter. So it's not hugely meaningful but enough to change 2 or 3 percentage points in terms of our revenue for the quarter.

所以我想說這是這兩件事的結合，但我也想指出，我們不是在談論去年發生的瘋狂庫存調整之類的事情。我認為這更多是在邊緣。但這些邊際調整確實產生了足以讓我們需要調整第三季營收指引的影響。因此，這並沒有多大意義，但足以使我們本季的收入改變 2 或 3 個百分點。

Yes. Maintain (inaudible) your guidance, which means that the back half will produce exactly what we said and including the good news that we brought out today on Q2. So I think people just even looking at the stock price early reactions may be hung up on this idea of is there pressure in the back half. And what we're saying is exactly what Brian just said, that there's a rejiggering of the cadence between Q3 and Q4 and the reaffirmation of the full year results.

是的。維持（聽不清楚）您的指導，這意味著後半部分將產生與我們所說的完全相同的結果，包括我們今天在第二季發布的好消息。因此，我認為人們即使只關注股價的早期反應，也可能擔心後半段是否有壓力。我們所說的正是布萊恩剛才所說的，第三季和第四季之間的節奏進行了重新調整，並重申了全年業績。

Got it. And then just sticking on the outlook. The full year outlook is still a pretty wide range considering we're past the midpoint of the year you've historically tried to narrow that a bit by this time. And you've already obviously, you talked about the line of sight on Q3 versus Q4 cadence. So perhaps can you provide just maybe some goalposts on what's embedded at the low end versus the initiatives that potentially gets you to the high end of the range.

知道了。然後就堅持展望。考慮到我們已經過了今年的中點，您歷來試圖在此時縮小範圍，全年前景仍然相當廣泛。顯然，您已經談到了第三季與第四季節奏的視線。因此，也許您可以提供一些關於低端嵌入內容與可能使您達到高端範圍的舉措的一些目標。

Yes. I mean I think it's a good call out. We -- something considered narrowing. I think you would hopefully agree that there's a lot going on in the macro environment that could have an impact. And I think weighing all of that, including very recent things, we felt like let's go ahead and maintain the range, even though it does result in a wide range, especially for Q4. I think, hopefully, you've seen from our history, at least the history, I know I've been a part of -- we're always focused on the high end of our ranges, and that's where we'd like to steer towards and we like to have conversations around but felt like with all the uncertainty in the environment, it made sense to keep a wide range to account for every -- a lot of different variables that could change over the course of the second half of the year.

是的。我的意思是我認為這是一個很好的呼籲。我們——被認為是縮小範圍的東西。我想您會同意宏觀環境中發生的許多事情可能會產生影響。我認為權衡所有這些，包括最近的事情，我們覺得讓我們繼續維持這個範圍，儘管它確實會導致一個很大的範圍，特別是對於第四季度。我想，希望你已經從我們的歷史中看到了，至少是我知道我曾經參與過的歷史——我們始終專注於我們產品範圍的高端，這就是我們想要的我們喜歡圍繞環境進行對話，但感覺環境中存在所有不確定性，因此保持廣泛的範圍來考慮每個因素是有意義的——許多不同的變數可能在下半年發生變化那一年。

But we feel very good about our forecast. We feel like we factored in a lot of potential downside impact and left a lot of room for upside on top of our forecast, if we're able to hit on all our strategic initiatives. I don't know if you want to add anything there about -- I called out -- or I answered a previous question about some of the things in versus Q3 and Q4 that are going to drive that and give us confidence in that. I don't know if you've got follow-up questions on those items, I would call those items out. It's being the primary drivers of kind of the Q3, Q4 cadence.

但我們對我們的預測感覺非常好。我們認為，如果我們能夠實施所有策略舉措，我們會考慮到許多潛在的下行影響，並在預測之外留下很大的上行空間。我不知道你是否想在那裡添加任何內容 - 我大聲疾呼 - 或者我回答了之前的問題，關於第三季度和第四季度中的一些事情，這些事情將推動這一點並使我們對此充滿信心。我不知道您是否對這些項目有後續問題，我會將這些項目提出來。它是第三季、第四季節奏的主要驅動力。

Our next question is from Peter Grom with UBS.

我們的下一個問題來自瑞銀集團的彼得‧葛羅姆。

Thanks, operator. Good morning, everyone. So I apologize if I missed this, Brian, in your remarks. But is the expectation for full year gross margin to still be around this 48%. And if so, can you maybe speak to the phasing from a gross margin perspective given the more challenged 3Q outlook? And I guess what I'm really trying to get at here is if that's still the expectation that it's more weighted to the fourth quarter, which seems to be the case given the change in the outlook in terms of phasing, like how does that inform your view on the gross margin potential for the business as you look out to fiscal '25, particularly as Pegasus savings continue to build?

謝謝，接線生。大家，早安。布萊恩，如果我在你的演講中漏掉了這一點，我深表歉意。但預計全年毛利率仍將在48%左右。如果是這樣，考慮到第三季前景面臨更大的挑戰，您能否從毛利率的角度談談分階段的問題？我想我真正想表達的是，這是否仍然是對第四季度的權重更大的預期，考慮到分階段前景的變化，情況似乎就是這樣，例如這如何通知展望25 財年，特別是隨著Pegasus 儲蓄的不斷增加，您對該業務的毛利率潛力有何看法？

Yes. Good question. We are seeing the -- that will end the year with a slightly lower gross profit margin implied in our original guidance. And -- but that's really just from shift margin mix shift in revenue impacts that are going on. So nothing structural that we're concerned about and no concerns about fiscal year '25. So structurally, we still have the ability to elevate our gross profit margin and achieve kind of what we've talked about through Pegasus and see that impact through into fiscal year '25. And we're still realizing the freight and commodity savings in the second half of fiscal year '24. The -- I'll call it, one percentage point decrease in our full year gross profit margin expectation is really due to shifts in margin mix within our portfolio.

是的。好問題。我們看到，我們最初的指導中暗示的毛利率將在年底略有下降。而且——但這實際上只是來自正在發生的收入影響的利潤率組合變化。因此，我們不擔心任何結構性問題，也不擔心 25 財年。因此，從結構上講，我們仍然有能力提高毛利率，並實現我們透過 Pegasus 所討論的目標，並在 25 財年看到這種影響。我們仍在 24 財年下半年實現貨運和商品節省。我稱之為，我們全年毛利率預期下降一個百分點實際上是由於我們投資組合中利潤率組合的變化。

Peter, no impact on our continued confidence that we can build it from there because of your comment about Pegasus. So as Pegasus has ramped, remember 60% of the Pegasus savings are coming from cost of goods related work stream projects. As Noel reinforced in her comments about Pegasus nicely on track. So with 60% of such a big number, which is Pegasus' published target falling into COGS, it's -- we feel confident to say that not only will we keep the big gross margin gains that are reiterated now or can be used now for gross margin fiscal '24 but build from there in fiscal '25, '26, et cetera.

彼得，您對 Pegasus 的評論不會影響我們繼續建立它的信心。因此，隨著 Pegasus 的成長，請記住 Pegasus 節省的 60% 來自與工作流程項目相關的貨物成本。正如諾埃爾在她對飛馬座的評論中所強調的那樣，飛馬座很好地步入正軌。因此，Pegasus 公佈的目標中有 60% 屬於銷貨成本，我們有信心地說，我們不僅會保持現在重申的毛利率大幅增長，或者現在可以用於毛利率增長。24 財年的利潤率，但在25、26 財年等中以此為基礎。

And still have reinvestment opportunities.

並且仍有再投資機會。

Yes. In fact, even more reinvestment opportunity because of the fuel from Pegasus and not to get into our Investor Day now, but there's a very positive dynamic. Imagine more dollars coming in resulting in a higher gross margin than even the gains for this fiscal year, fueled by Pegasus, which also fuels the further reinvestment, which also fuels more growth, you start being at the idea not only of a flywheel, but have a higher sustained gross margin going forward.

是的。事實上，由於飛馬座的燃料，還有更多的再投資機會，現在還沒有進入我們的投資者日，但有一個非常積極的動態。想像一下，在Pegasus 的推動下，更多的美元流入會導致比本財年的收益更高的毛利率，這也推動了進一步的再投資，這也推動了更多的增長，你開始不僅想到飛輪，而且想到了飛輪。未來將有更高的持續毛利率。

Peter, you asked a question about cadence. So I would say, roughly speaking, if you want a platform off of Q2, maybe 0.5 percentage point around that in Q3 and then 1.5%, maybe a little bit higher in Q4, that's kind of the cadence of the increase in gross profit for the remainder of the year.

彼得，你問了一個關於節奏的問題。所以我想說，粗略地說，如果你想要一個第二季的平台，也許第三季大約 0.5 個百分點，然後是 1.5%，第四季可能更高一點，這就是毛利成長的節奏。今年剩下的時間。

Just one clarification on that. So the 50 basis points versus Q2, so call it low 47, is the 150 basis points relative to Q3? Or is it relative to the Q2 number, just so clear?

對此僅作一澄清。那麼相對於第二季的 50 個基點，所以稱為低 47，是相對於第三季的 150 個基點嗎？還是相對於第二季的數字，就這麼清楚了？

So the 50 basis points is relative to Q2. So like you said, low 47 and then take 1.5 points on top of that for Q4.

所以50個基點是相對於第二季而言的。所以就像你說的，低 47，然後在第四季的基礎上再拿 1.5 分。

Okay. Yes. I was just making sure it was the 47, we're building the point half off of the low 47, not off of the Q2 number really (inaudible). And then just a last question for me, just like more bigger picture. I mean Brian, you're pretty clear that you've embedded enough cushion in your guidance. But I would just be curious, it's been a pretty challenging environment to kind of predict what is going to happen. How would you characterize your visibility, right? I mean we're not that long ago where you were kind of expecting a return to revenue growth in 3Q and that kind of didn't play out.

好的。是的。我只是想確定是 47 桿，我們的得分是 47 桿的一半，而不是第二季的桿數（聽不清楚）。接下來是我的最後一個問題，就像更大的圖像。我的意思是布萊恩，你很清楚你已經在你的指導中嵌入了足夠的緩衝。但我只是很好奇，這是一個非常具有挑戰性的環境來預測將要發生的事情。您會如何形容您的知名度，對嗎？我的意思是，就在不久前，您還期待第三季營收恢復成長，但這種情況並沒有實現。

So I guess I would just bigger picture question. How much visibility do you think you have at this stage as you look out to 4Q and into next year?

所以我想我只是想問一個更大的問題。當您展望第四季和明年時，您認為現階段的能見度有多少？

I'd say, overall, it's good. I mean I get your point about we did make a change in that, I think, is a reflection of us staying close to our retailers and listening to what they're having to say and that's reflecting that adjustment as soon as we kind of get that visibility. And look, we can't perfectly predict retailer adjustments at the beginning of the year.

我想說，整體來說，還是不錯的。我的意思是，我明白你的觀點，我們確實做出了改變，我認為，這反映了我們與零售商保持密切聯繫並傾聽他們的意見，這反映了我們一旦得到某種結果就進行的調整那種可見度。看，我們無法完美預測年初零售商的調整。

So hopefully, what it shows is us being very responsive to talking to our retailers, and some of them are very focused on student loan repayment and others aren't as focused. And so that's even another layer that we have to get in and understand because you can't make a blanket statement that all of them are adjusting to that, but some of them are. And I would say we're -- it's a reflection of us staying close to our market and reflecting that visibility as soon as we have that opportunity. And hopefully, that gives you some confidence because, like I said, at the beginning of the year, you can't have predicted that this would come up and the retailers some adjusting to it and some not adjusting to it and which ones and all of the puts and takes.

因此，希望這表明我們對與零售商的交談非常敏感，其中一些非常關注學生貸款償還，而另一些則不那麼關注。因此，這甚至是我們必須進入並理解的另一層，因為你無法籠統地聲明所有這些都在適應這一點，但其中一些正在適應。我想說的是，這反映了我們與市場保持密切聯繫，並在有機會時立即反映這種可見性。希望這會給你一些信心，因為就像我說的，在今年年初，你無法預測這種情況會出現，零售商有些會適應它，有些不會適應它，以及哪些零售商和所有零售商的投入和採取。

So I mean based on kind of the heap of macro puts and takes and things going on right now, I think we're managing our forecast and our visibility as well as we can.

所以我的意思是，根據大量的巨集觀看跌期權和現在正在發生的事情，我認為我們正在盡我們所能管理我們的預測和可見性。

Our final question is from 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。

Yes. So I was curious about your view on putting some cash towards share repurchase versus further debt repayment. And knowing the macro environment and some of these things going on that you just talked about, it's a little surprising that you did the share repurchase already $50 million I guess, I'm just kind of wondering, have you used all your ammunition. Or is there some ability to do more here with the stock down 9%. Maybe you could just comment on your thoughts there?

是的。所以我很好奇你對將一些現金用於股票回購而不是進一步償還債務的看法。在了解宏觀環境以及您剛才談到的一些事情后，您已經進行了 5000 萬美元的股票回購，這有點令人驚訝，我想，我只是想知道，您是否已經使用了所有彈藥。或者在股價下跌 9% 的情況下是否有能力採取更多行動。也許你可以在那裡評論一下你的想法？

No, I don't think we've used all our ammunition, and we think that the share repurchase was a good investment. And the primary thinking is that even with the repurchase of our shares, we were still able to get to the better end of our leverage target by the end of the year of 1.85x. And so we thought it was a great thing to do to return some capital to shareholders. We also had a reasonable view on the sale of our El Paso facility and the proceeds that, that would generate, which was also factored into the thinking and helps us be in a very strong balance sheet position to be able to do it. So I view it as a win-win. We're able to get at the very low end of our leverage target for the year, and we were able to repurchase shares. To me, those are both positive.

不，我認為我們還沒有用盡所有彈藥，我們認為股票回購是一項很好的投資。主要想法是，即使回購了我們的股票，我們仍然能夠在年底前更好地實現 1.85 倍的槓桿目標。因此，我們認為向股東返還一些資本是件好事。我們也對出售埃爾帕索工廠以及由此產生的收益有一個合理的看法，這也被納入考慮範圍，並幫助我們處於非常強大的資產負債表位置，能夠做到這一點。所以我認為這是雙贏的。我們能夠達到今年槓桿目標的極低端，並且我們能夠回購股票。對我來說，這些都是正面的。

In terms of timing, I couldn't agree more. Remember, we're going to for the long game. I know a lot of people on this call are too. We like our prospects a lot. I think of the basics. Distribution is growing. Investment fuel from the Pegasus savings gives us the ability to not only expand margin, but also to invest in further drive from innovation and the other basic flywheel drivers in the company. That has the ability to expand not just profitability but revenue, which creates operating leverage, do that at a higher gross margin, do it all at a sweeter mix, so to speak, from a profit standpoint give [room 4] acquisition and ask should you see growth in the company and more acceleration we believe the answer is yes. So the short term that Brian described it creates opportunity lower leverage ratio below 2x, that he's talking about certainly means that we haven't spent our allocation for this depending with the market, the market is skittish right now, and yet that long-term proposition is fundamentally sound and exactly our expectation and plan makes you want to buy of stock, at least for us.

就時間安排而言，我完全同意。請記住，我們要打持久戰。我知道參加這次電話會議的很多人也是如此。我們非常喜歡我們的前景。我想到了基礎知識。分佈正在成長。 Pegasus 節省的投資燃料使我們不僅能夠擴大利潤，而且能夠投資於創新和公司其他基本飛輪驅動因素的進一步驅動力。這不僅能夠擴大獲利能力，還能擴大收入，從而創造營運槓桿，以更高的毛利率做到這一點，以更甜蜜的組合做到這一切，可以這麼說，從利潤的角度來看，給予[房間4]收購並要求應該你看到公司的成長和更多的加速，我們相信答案是肯定的。因此，布萊恩所描述的短期創造了槓桿率低於 2 倍的機會，他所說的當然意味著我們還沒有根據市場的情況花費我們的配置，市場現在很不穩定，但長期來看這個提議從根本上來說是合理的，正是我們的期望和計劃讓您想要購買股票，至少對我們來說是這樣。

We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing comments.

我們的問答環節已經結束。我想將會議轉回管理層以徵求結束意見。

Yes. Well, thank you, operator, and thank you, everybody, for joining us today. We're very pleased with the quarter and to be in a position to reiterate our guidance for the full year outlook for fiscal '24. We look forward to speaking with any of you later this week as we make our various calls and also providing detail on our longer-term strategy during our Investor Day on the 17th of this month. So with that, I'll simply say thanks very much and have a wonderful day.

是的。好的，謝謝接線生，也謝謝大家今天加入我們。我們對本季度非常滿意，並且能夠重申我們對 24 財年全年前景的指導。我們期待在本週晚些時候與大家進行交談，我們將在本月 17 日的投資者日期間撥打各種電話，並提供有關我們長期策略的詳細資訊。因此，我只想說非常感謝，祝你有美好的一天。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。