康寶萊 (HLF) 2017 Q1 法說會逐字稿

Good afternoon, and thank you for joining the First Quarter 2017 Earnings Conference Call for Herbalife Ltd. On the call today is Michael Johnson, the company's Chairman and CEO; Richard Goudis, the company's COO; John DeSimone, the company's CFO; and Alan Quan, the company's Vice President, Investor Relations.

下午好，感謝您參加康寶萊有限公司 2017 年第一季財報電話會議。今天參加電話會議的是該公司董事長兼執行長 Michael Johnson； Richard Goudis，公司營運長；德西蒙 (John DeSimone)，公司財務長；以及公司投資者關係副總裁 Alan Quan。

I would now like to turn the call over to Alan Quan to read the company's safe harbor language.

我現在想把電話轉給 Alan Quan，閱讀公司的安全港語言。

Before we begin, as a reminder, during this conference call, comments may be made that include some forward-looking statements. These statements involve risks and uncertainty, and as you know, actual results may differ materially from those discussed or anticipated. We encourage you to refer to today's earnings release and our SEC filings for a complete discussion of risks associated with these forward-looking statements in our business. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any future events or circumstances or to reflect the occurrence of unanticipated events, except as required by law.

在我們開始之前，提醒一下，在本次電話會議期間，可能會發表一些評論，其中包括一些前瞻性陳述。這些陳述涉及風險和不確定性，如您所知，實際結果可能與討論或預期的結果有重大差異。我們鼓勵您參考今天的收益報告和我們向 SEC 提交的文件，以全面討論與我們業務中的這些前瞻性陳述相關的風險。我們不承擔更新或發布任何前瞻性聲明的任何修訂或報告任何未來事件或情況或反映意外事件發生的義務，除非法律要求。

In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. generally accepted accounting principles referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner, as discussed in greater detail in the supplemental schedules to our earnings release. Please refer to the Investor Relations section of our website, herbalife.com, to find our press release for this quarter, which contains a reconciliation of these measures. Additionally, when management makes reference to volumes during this conference call, they are referring to volume points.

此外，在本次電話會議中，可能會討論某些財務績效指標，這些指標與我們根據美國公認會計原則（美國證券交易委員會稱為非公認會計準則財務指標）編制的財務報表中包含的可比較指標不同。我們相信，這些非公認會計原則財務指標有助於管理層和投資者以更有意義和一致的方式評估我們的業績並準備各時期的經營業績，正如我們收益發布的補充時間表中更詳細討論的那樣。請參閱我們網站 herbalife.com 的投資者關係部分，以尋找本季的新聞稿，其中包含這些措施的協調表。此外，當管理階層在本次電話會議期間提到交易量時，他們指的是交易量點。

I'll now turn the call over to our Chairman and CEO, Michael Johnson.

現在我將把電話轉給我們的董事長兼執行長邁克爾·約翰遜。

Good afternoon, everyone. Thank you for joining our First Quarter 2017 Earnings Call. We started the year with better-than-expected financial performance on both the top and bottom line. While we are pleased with our results this quarter, we remain cautiously optimistic with our outlook for the full year. In the second quarter, we have to overcome difficult comparisons to last year in the U.S., along with the go live of our agreement with the FTC. We need to continue to nurture growth back into our China business. While we work through these opportunities, our new guidance reflects a more favorable movement of the U.S. dollar and therefore, we have raised our outlook for the full year.

大家下午好。感謝您參加我們的 2017 年第一季財報電話會議。今年伊始，我們的營收和利潤的財務表現都比預期好。雖然我們對本季的業績感到滿意，但我們對全年的前景保持謹慎樂觀。在第二季度，我們必須克服與美國去年相比的困難，以及我們與聯邦貿易委員會的協議的生效。我們需要繼續培育中國業務的成長。在我們抓住這些機會的同時，我們的新指引反映出美元的走勢更加有利，因此，我們上調了全年的前景。

In the first quarter 2017, volume points increased 1% worldwide compared to last year. Total net sales for the quarter were $1.1 billion, a 2% decrease compared to the prior year period but on a constant-currency basis, net sales were flat compared to the first quarter 2016. Our higher-than-expected volume performance this quarter was primarily driven by a 17% volume growth for China. This was a result of our members buying significantly more products in March ahead of our planned price increase on April 1. On the one hand, this confirms strong customer demand for our nutrition products. However, the consequence is that our second quarter in China volume will likely be impacted by this activity. Nevertheless, our long-term full-year outlook for the market remains positive and this is reflected in our guidance.

2017 年第一季度，全球銷量較去年成長 1%。該季度淨銷售額總額為 11 億美元，比去年同期下降 2%，但以固定匯率計算，淨銷售額與 2016 年第一季持平。我們本季銷量表現高於預期，主要是由於中國銷量成長 17%。這是由於我們的會員在 4 月 1 日計劃提價之前在 3 月份購買了更多產品。然而，其結果是我們第二季在中國的銷售量可能會受到這項活動的影響。儘管如此，我們對全年長期市場前景仍然樂觀，這也反映在我們的指導下。

Net income for the quarter was $85.2 million or $0.98 a share compared to net income of $95.8 million or $1.12 per share for the first quarter 2016. As we disclosed in our press release today, adjusted earnings for the first quarter was $1.24 per share compared to $1.35 per share for the first quarter in 2016. Reported in adjusted EPS, both beat the high end of our guidance by $0.28 and $0.29, respectively, and each reflecting higher-than-expected sales in China. While we make necessary investments for our future, we are also maintaining our control on costs.

本季淨利為 8,520 萬美元，即每股 0.98 美元，而 2016 年第一季淨利潤為 9,580 萬美元，即每股 1.12 美元。正如我們今天在新聞稿中披露的那樣，第一季調整後收益為每股 1.24 美元，而 2016 年第一季為每股 1.35 美元。以調整後每股收益計算，兩者分別超出我們指引的上限 0.28 美元和 0.29 美元，並且都反映了高於預期的中國銷售額。在我們為未來進行必要投資的同時，我們也保持對成本的控制。

In continuing our commitment towards enhancing shareholder value under our new share buyback program, we repurchased 2.1 million shares at the end of April for a total of $119 million. Since 2007, we have repurchased over $3.2 billion in stock and we have approximately $1.38 billion remaining under the new program. John DeSimone will go into more detail on this in our financials later in the call.

為了繼續致力於根據新的股票回購計畫提高股東價值，我們於 4 月底回購了 210 萬股股票，總金額為 1.19 億美元。自 2007 年以來，我們已回購了超過 32 億美元的股票，根據新計劃，我們還剩餘約 13.8 億美元。約翰·德西蒙 (John DeSimone) 將在稍後的電話會議中詳細介紹我們的財務狀況。

In a moment, our incoming CEO, Rich Goudis will talk about the progress we are making with our business in the U.S. to meet the requirements of our agreement with the FTC. Rich and many of our executives and senior distributor leaders in the U.S. have been working tirelessly to ensure a smooth transition using new technologies and business tools, along with incorporating new rules and processes as we distinguish preferred members from distributors and track end-user purchases.

稍後，我們即將上任的執行長 Rich Goudis 將談論我們在美國的業務為滿足我們與 FTC 協議的要求所取得的進展。Rich 和我們在美國的許多高管和高級分銷商領導一直在不懈地努力，以確保使用新技術和業務工具順利過渡，並在我們區分首選會員和分銷商並跟踪最終用戶購買時納入新的規則和流程。

It's hard to believe that this is my last call with you as CEO of Herbalife. I've had the honor of leading our company on these calls since we went public in December 2004, sharing quarterly and annual highlights. In that time, we've experienced tremendous growth. From just over $1 billion in 2003 to nearly $5 billion in 2016 in net sales, an increase of more than 5x in our market cap during that period. From listening to these quarterly updates, you should recognize by now my passion for Herbalife, and our mission grows stronger every year. I'm proud to be one of Herbalife's largest individual shareholders, a reflection of my confidence in my current and long-term positive outlook for this amazing company.

很難相信這是我作為康寶萊執行長最後一次與您通電話。自 2004 年 12 月上市以來，我有幸領導我們公司召開這些電話會議，分享季度和年度亮點。在那段時間，我們經歷了巨大的成長。淨銷售額從 2003 年的略高於 10 億美元增至 2016 年的近 50 億美元，同期我們的市值增長了 5 倍多。透過聆聽這些季度更新，您現在應該認識到我對康寶萊的熱情，並且我們的使命每年都在增強。我很自豪能夠成為康寶萊最大的個人股東之一，這反映了我對這家令人驚嘆的公司當前和長期的積極前景充滿信心。

Earlier this week, I had the pleasure of attending the annual Milken Institute Global Conference here in L.A., where I joined 2 panel discussions on health and global talent. The event provided a forum to talk about the future of nutrition and the economic opportunity we offer with the amazing leaders in the field of public health, both in the private and public sectors. In my new role as Executive Chairman, my goal will be to do more outreach to government, university and policy leaders to help usher in solutions to the growing man-made issues affecting consumer health around the world. I'm more convinced today that we are uniquely positioned to be a solution to many of the world's problems but specifically, the skyrocketing healthcare costs. We offer personalized nutritional programs that blend our science-based products with the voice and high touch of an informed distributor, offering personal coaching, community and social support. We believe these differentiating attributes of our business are a competitive advantage not found in any traditional retail or anywhere else.

本週早些時候，我有幸參加了在洛杉磯舉行的米爾肯研究所全球年度會議，參加了兩場有關健康和全球人才的小組討論。該活動提供了一個論壇，讓我們與私營和公共部門公共衛生領域的傑出領導人討論營養的未來和我們提供的經濟機會。在擔任執行主席的新職位上，我的目標是與政府、大學和政策領導人進行更多的接觸，幫助找到解決方案，解決影響全球消費者健康的日益嚴重的人為問題。今天我更加確信，我們具有獨特的優勢，可以解決世界上許多問題，特別是不斷飆升的醫療保健費用。我們提供個人化的營養計劃，將我們基於科學的產品與消息靈通的經銷商的聲音和高接觸融為一體，提供個人指導、社區和社會支持。我們相信，我們業務的這些差異化屬性是任何傳統零售業或其他任何地方都沒有的競爭優勢。

And now, with our advances in science and technology and smart data from transacting directly with end consumers, we can assist our distributors in maximizing the economic value of their customers. Additionally, with the rise in entrepreneurship in the gig economy where people choose to work for themselves, we are uniquely positioned to appeal to all generations, including millennials pursuing flexible work and a sense of purpose, and increasingly, retirees looking to supplement their retirement savings. Herbalife offers a business opportunity where our distributors can earn extra income while working to their own schedule and in the nutrition and wellness industry we see growing. And folks need that opportunity. I read recently that the average 40 to 55 years old in the U.S. has only $14,500 in their retirement account, and 43 million people in the U.S. are receiving food stamps, up from 17 million in 2000. I have often described Herbalife as a company of stories, the thousands of stories that we have heard over the past 14 years have helped to inspire and motivate us through several business cycles and unprecedented business challenges.

現在，憑藉我們在科學技術方面的進步以及直接與最終消費者進行交易的智慧數據，我們可以幫助我們的經銷商最大限度地提高客戶的經濟價值。此外，隨著人們選擇為自己工作的零工經濟中創業精神的興起，我們擁有獨特的優勢來吸引各代人，包括追求靈活工作和使命感的千禧一代，以及越來越多希望補充退休儲蓄的退休人員。康寶萊提供了一個商機，我們的經銷商可以在按照自己的時間表工作的同時賺取額外收入，我們看到營養和健康產業正在不斷發展。人們需要這個機會。我最近讀到，美國 40 至 55 歲的人平均退休帳戶裡只有 14,500 美元，而美國有 4,300 萬人領取食品券，而 2000 年這一數字為 1,700 萬人。我經常將康寶萊形容為一家充滿故事的公司，在過去的14年裡，我們聽到的數千個故事幫助激勵和激勵我們度過了幾個商業週期和前所未有的商業挑戰。

One such story is from Robert, who lives in Rhode Island. He spent his life working in factories and retired at 63 years of age on a pension of $91 a month. In his letter to me, Robert told me how he started as a customer of Herbalife, benefiting from a daily shake and a sense of community at his local Nutrition Club. He was inspired by the club's owner and under her guidance, Robert became a distributor and went on to build his own base of customers. Through Herbalife, like so many customers, Robert improved his own health and then, like many other distributors, he found purpose and saw the opportunity in helping others in this community do the same. Through his experience, he's gained new skills in business marketing, nutrition, and he is earning extra income that supplements his pension. If the mark of a successful career is the favorable impact you make on the lives of others, I couldn't be more fulfilled knowing that the lives of so many have been improved because of our mission for nutrition.

其中一個故事來自住在羅德島州的羅伯特。他一生都在工廠工作，63 歲時退休，每月領取 91 美元的退休金。羅伯特在給我的信中告訴我，他如何開始成為康寶萊的客戶，並從當地營養俱樂部的日常奶昔和社區意識中受益。他受到俱樂部老闆的啟發，在她的指導下，羅伯特成為經銷商，並繼續建立自己的客戶群。與許多客戶一樣，羅伯特透過康寶萊改善了自己的健康狀況，然後，像許多其他經銷商一樣，他找到了目標，並看到了幫助這個社區中的其他人做同樣事情的機會。透過他的經驗，他獲得了商業行銷、營養方面的新技能，他正在賺取額外的收入來補充他的退休金。如果職業生涯成功的標誌是對他人的生活產生積極影響，那麼當我知道由於我們的營養使命而使許多人的生活得到改善時，我感到非常滿足。

This coming June, just a few weeks from now, Rich Goudis, my colleague for 13 years, will become our Chief Executive Officer. I'm excited for you to experience his passion for our nutrition purpose, his vision for our product and technology innovation and his focus on assisting our distributors and employees through training as we strive to improve nutrition in the world.

今年 6 月，也就是幾週後，我 13 年的同事 Rich Goudis 將成為我們的執行長。我很高興您能體驗到他對我們營養目標的熱情、他對我們產品和技術創新的願景，以及他在我們努力改善世界營養的過程中透過培訓幫助我們的經銷商和員工的專注。

Rich, congratulations, my friend. It's over to you.

富有，恭喜你，我的朋友。一切都交給你了。

Thank you, Michael, and good afternoon, everyone. It's hard to believe this is Michael's last earnings call as CEO. Michael's passion for our mission has driven incredible growth for our company over the past 14 years. And today, more importantly, the Herbalife Nutrition brand is recognized worldwide for its nutrition products and personalized approach to supporting customers with their nutrition goals.

謝謝邁克爾，大家下午好。很難相信這是麥可擔任執行長的最後一次財報電話會議。Michael 對我們使命的熱情在過去 14 年裡推動了我們公司令人難以置信的成長。如今，更重要的是，康寶萊營養品牌因其營養產品和支持客戶實現營養目標的個人化方法而享譽全球。

Ever since we announced the change in leadership last November, Mike and I have been working closely together to ensure a smooth and seamless transition. Given our 13-year working relationship, it should come as no surprise that we have been joined at the hip during this critical period. I'm grateful for his encouragement, wisdom and friendship, and I look forward to his continuing partnership in our new roles to enhance shareholder value. As Executive Chairman, Michael will continue to provide us with his invaluable counsel and advice, his inspiration for our distributors along with his experience leading the Board.

自從我們去年 11 月宣布領導層變動以來，麥克和我一直密切合作，以確保平穩、無縫的過渡。鑑於我們已有 13 年的工作關係，我們在這個關鍵時期齊心協力也就不足為奇了。我感謝他的鼓勵、智慧和友誼，並期待他在我們的新職位上繼續合作，以提高股東價值。作為執行主席，邁克爾將繼續為我們提供寶貴的建議和建議、他對我們經銷商的啟發以及他領導董事會的經驗。

For the past 9 months, many of our executives, along with the entire North American management team and distributor leaders, have focused on implementing new technologies, along with new rules and procedures that will ultimately enhance distributor earnings under the FTC agreement here in the U.S. One of the exciting areas of advancement and one that we believe will create significant competitive advantage for us in the future is the way we are now capturing distributor and customer transactions and tracking product sales using newly developed technology tools. In close collaboration with our distributors, we have built and continued to enhance these tools that we believe will allow us to leverage data, analytics and build even stronger customer relationships and design better retention programs for our distributors.

在過去的 9 個月中，我們的許多高階主管以及整個北美管理團隊和經銷商領導者都專注於實施新技術以及新的規則和程序，最終將根據美國聯邦貿易委員會協議提高經銷商的收入。我們現在使用新開發的技術工具來捕捉經銷商和客戶交易並追蹤產品銷售的方式是令人興奮的進步領域之一，我們相信這將在未來為我們創造顯著的競爭優勢。透過與經銷商的密切合作，我們建立並持續增強這些工具，我們相信這些工具將使我們能夠利用數據、分析，建立更牢固的客戶關係，並為我們的經銷商設計更好的保留計劃。

As our technology and tools have continued to improve in the U.S. during 2017, our distributors around the world have expressed their desire for us to provide them with the same type of functionality in the coming years. Our U.S. distributors have dedicated a significant amount of time and effort to help develop and implement these new tools into their business practices. As a result of this shift in focus, and as we communicated, we expect that a small short-term impact in the U.S. In line with this expectation, our first quarter volume points in the U.S. were down 5%. We believe the impact of this transition in the U.S. business is similar to that of the worldwide marketing plan changes that we implemented back in 2014 and 2015. As a reminder, after our worldwide distributors effectively cycled through those new changes, we expensed a return to volume growth for the company. As with the case back then, we expect the same to happen here in the U.S.

隨著 2017 年我們的技術和工具在美國不斷改進，我們世界各地的經銷商都表示希望我們在未來幾年為他們提供相同類型的功能。我們的美國經銷商投入了大量的時間和精力來幫助開發這些新工具並將其應用到他們的業務實踐中。由於這種重點轉移，正如我們所傳達的，我們預計美國的短期影響較小。我們相信這項轉變對美國業務的影響與我們在 2014 年和 2015 年實施的全球行銷計畫變化的影響類似。提醒一下，在我們的全球經銷商有效地經歷了這些新變化之後，我們為公司恢復銷售成長支出了費用。與當時的情況一樣，我們預期同樣的情況也會在美國發生。

We continue to make significant progress with the segmentation requirement of the agreement. We began segmenting our existing U.S. members into preferred customers and distributors in October, and today, the total number of preferred customers is approximately 360,000 people. In addition, since January 13, when segmentation became available at sign-up from the U.S. members, 80% of our new members are signing up as preferred members and more than 60% of all those placing orders in the first quarter were preferred members. As we have maintained, this data continues to validate our previous research and studies that the majority of our members are comprised of customers who desire to consume Herbalife Nutrition products at a discount and not to resell the products or create a sales organization.

我們繼續在協議的分段要求方面取得重大進展。我們從 10 月開始將現有的美國會員分為首選客戶和分銷商，如今，首選客戶總數約為 36 萬人。此外，自 1 月 13 日美國會員註冊時可進行細分以來，我們 80% 的新會員註冊為優先會員，第一季下單的所有會員中超過 60% 為優先會員。正如我們所堅持的那樣，這些數據繼續驗證了我們先前的研究，即我們的大多數會員都是希望以折扣價消費康寶萊營養產品的客戶，而不是轉售產品或創建銷售組織。

On our last earnings call, we talked about our focus on increasing distributalization of our new point of sale receipting tools that enable electronic tracking and verification of sales to customers. In January, we processed approximately 120,000 retailer receipts. In February, approximately 1 million. And last month, in April, approximately 2.2 million retail receipts. In just 3 months, we have seen a tremendous increase in receipts being turned in, in process. This is a significant accomplishment and it's a great testament to the robust technology infrastructure we have built, our talented global IT team of over 1,100 employees, but, above all, the incredible time and effort our distributor leaders have put in to making these new tools through productivity advantages for their businesses.

在我們上次的財報電話會議上，我們談到了我們對增加新銷售點收據工具的分發的關注，這些工具可以實現對客戶銷售的電子追蹤和驗證。一月份，我們處理了大約 12 萬張零售商收據。2月份，大約有100萬。上個月，即 4 月份，零售收據約 220 萬份。在短短 3 個月內，我們看到正在上交的收據大幅增加。這是一項重大成就，充分證明了我們所建立的強大技術基礎設施、我們擁有超過1,100 名員工的才華橫溢的全球IT 團隊，但最重要的是，我們的經銷商領導者為製作這些新工具所投入的時間和精力令人難以置信透過其企業的生產力優勢。

Let me now provide you with an update on how we are tracking to the 80% threshold. As a reminder, the 80% is simply a threshold that determines how much additional compensation will be allowed to pay on top of the existing rewards for documented sales. While this is not a measure of compliance, we believe we are on track to meet the 80% threshold, and I'm pleased to report that, at the end of April, our calculations show we are in excess of 70%.

現在讓我向您介紹我們如何追蹤 80% 閾值的最新情況。提醒一下，80% 只是一個閾值，用於確定在記錄銷售的現有獎勵之外允許支付多少額外補償。雖然這不是合規性的衡量標準，但我們相信我們預計將達到 80% 的門檻，而且我很高興地報告，到 4 月底，我們的計算顯示我們已經超過 70%。

To be clear, as we go live here in May, the 80% threshold is not a monthly measurement but rather a calendar year measurement. Perhaps the most significant advancement to our business, which was developed through the implementation of the agreement, is that by tracking sales of our products to end-users, we're gaining direct transactional level visibility and insights into a customer base that we've never had before. The segmentation of our member base is allowing us to develop communication and marketing materials that speak directly to customers and thus, provides us with the ability to enhance and lengthen their experience with our company.

需要明確的是，當我們在 5 月上線時，80% 的門檻不是每月的衡量標準，而是日曆年的衡量標準。透過執行該協議，我們的業務最重要的進步也許是，透過追蹤我們的產品向最終用戶的銷售，我們獲得了直接交易層級的可見性和對我們已經了解的客戶群的洞察。過。我們會員群的細分使我們能夠開發直接與客戶對話的溝通和行銷資料，使我們能夠增強和延長他們對我們公司的體驗。

We now have access to valuable data such as consumer pricing, seasonal buying preferences, product selection and bundling by psychographic category, new product launch metrics, consumer contact information and patterns of usage across different geographic groups. We believe this smart data will also help us empower our distributors to better meet their customers' needs, thus, increasing customer loyalty, purchase frequency and lifetime value. We believe that the person-to-person connection relationship, nutrition education and coaching, along with the creation of a social community with our customers, sets us apart from traditional retail. And now with the new smart data rolling in for millions of retail sales transactions each month, just here in the U.S., we have an opportunity to take personalized nutrition to a whole new level.

我們現在可以存取有價值的數據，例如消費者定價、季節性購買偏好、按心理類別劃分的產品選擇和捆綁、新產品發布指標、消費者聯絡資訊以及不同地理群體的使用模式。我們相信，這些智慧數據也將幫助我們授權經銷商更好地滿足客戶的需求，從而提高客戶忠誠度、購買頻率和終身價值。我們相信，人與人之間的聯繫、營養教育和指導，以及與客戶建立的社交社區，使我們有別於傳統零售。現在，隨著每月數百萬筆零售交易的新智慧數據不斷湧現，就在美國，我們有機會將個人化營養提升到一個全新的水平。

Michael said to me recently, "Rich, you're taking over CEO in an amazing time for our company", and he's absolutely right for several reasons. The megatrends of obesity, aging populations, skyrocketing public healthcare cost and a rise in entrepreneurship provide us with an exceptional platform for growth. Over the last 14 years, we have invested in an infrastructure that we believe has not only created a barrier to entry but a competitive advantage. Having direct access to consumer purchasing data will play a powerful role in our future growth and now, like never before, we are in an enviable position.

邁克爾最近對我說，“里奇，你在我們公司的一個美妙時刻接任首席執行官”，他的觀點絕對正確，有幾個原因。肥胖、人口老化、公共醫療成本飆升和創業精神的興起等大趨勢為我們提供了一個特殊的成長平台。在過去 14 年裡，我們投資了基礎設施，我們相信這些基礎設施不僅創造了進入壁壘，而且創造了競爭優勢。直接存取消費者購買數據將在我們未來的成長中發揮強大的作用，現在，我們處於前所未有的令人羨慕的地位。

Our company has never worked so closely with and gain such trust and confidence from its distributor leaders. Our unity, collaboration and shared purpose to make the world healthier and happier will be our true competitive advantage for years to come. I firmly believe that thanks to increasing investment in education, training and innovation, the opportunity is greater today than ever before for someone just joining the company. During my 6 years as CFO, I had the responsibility to instill in this company a fiscally prudent culture and disciplined capital allocation that has only been enhanced with John's leadership these past 7 years. Since becoming COO, I've had the opportunity to build and lead a team of tremendous professionals as we implemented our C2C program, rolled out a robust single-instance Oracle technology platform and created global shared services. Together, team Herbalife has created a strong balance sheet and an ROI-driven culture, along with a scalable infrastructure to support future growth, providing our distributors with pride and confidence in our products and our company, all while establishing ourselves as a leader in the nutrition industry. I'm thankful for the positive words of support and encouragement from our top investors, and I'm grateful for the opportunity to lead this amazing company into the future.

我們公司從未與經銷商領導如此密切合作並獲得如此信任和信心。我們的團結、協作和讓世界更健康、更幸福的共同目標將成為我們未來幾年真正的競爭優勢。我堅信，由於對教育、培訓和創新的投資不斷增加，對於剛加入公司的人來說，今天的機會比以往任何時候都更大。在擔任財務長的 6 年裡，我有責任向這家公司灌輸審慎的財務文化和嚴格的資本配置，而在過去 7 年約翰的領導下，這種文化和紀律得到了加強。自從成為營運長以來，我有機會建立並領導一支由優秀專業人士組成的團隊，幫助我們實施 C2C 計畫、推出強大的單一實例 Oracle 技術平台並創建全球共享服務。康寶萊團隊共同創建了強大的資產負債表和投資回報率驅動的文化，以及支持未來成長的可擴展基礎設施，為我們的經銷商提供了對我們的產品和公司的自豪感和信心，同時確立了我們在該領域的領導者地位。我感謝頂級投資者的積極支持和鼓勵，也感謝有機會帶領這家出色的公司走向未來。

Let me now turn it over to John for a financial overview of the past quarter and a review of guidance for the balance of 2017.

現在讓我將其轉交給約翰，以了解上一季的財務概況以及 2017 年餘額的指導回顧。

Thank you, Rich. Today I will start by discussing the company's first quarter 2017 reported and adjusted results, which will include key market highlights. I will then review our second quarter and full year 2017 guidance, and we'll conclude by providing an update on our share repurchase program.

謝謝你，里奇。今天我將首先討論該公司 2017 年第一季報告和調整後的業績，其中包括主要的市場亮點。然後，我將回顧我們的 2017 年第二季和全年指引，最後我們將提供有關股票回購計畫的最新資訊。

Volume points for the first quarter 2017 grew 1% compared to the first quarter 2016, while reported net sales for the first quarter decreased 2% to $1.1 billion. Constant currency net sales were flat compared to the first quarter in 2016. Volume and sales performance in the quarter exceeded our Q1 guidance, largely driven by higher-than-anticipated volume in China during the month of March. As stated in our press release, China significantly exceeded expectations, primarily due to the timing differences in sales and volume, which resulted from the price increase announced in March 2017, effective April 1, 2017, that we believe shifted member purchases into the first quarter that would like have been made in the second quarter of this year. The expected negative impact to the second quarter sales and volume is included in our current guidance.

與 2016 年第一季相比，2017 年第一季的銷量成長了 1%，而報告的第一季淨銷售額下降了 2%，至 11 億美元。以固定匯率計算，淨銷售額與 2016 年第一季持平。本季的銷售和銷售業績超出了我們第一季的指導，這主要是由於 3 月份中國銷量高於預期。正如我們在新聞稿中所述，中國市場大幅超出預期，主要是由於2017 年3 月宣布的價格上漲（自2017 年4 月1 日起生效）導致銷售和銷量的時間差異，我們認為這將會員採購轉移到了第一季這本來希望在今年第二季完成。對第二季度銷售額和銷量的預期負面影響已包含在我們當前的指導中。

I will provide additional guidance detail later in the call. Reported net income for the quarter was $85.2 million or $0.98 per diluted share compared to the reported net income of $95.8 million or $1.12 per diluted share for the first quarter 2016. Adjusted diluted EPS for the first quarter was $1.24 per diluted share compared to $1.35 per diluted share for the first quarter 2016. Reported and adjusted EPS both exceeded the high end of our first quarter guidance by $0.28 and $0.29, respectively. This beat was driven by approximately $0.18 from better-than-expected performance in China. The adjusted EPS figures exclude items we consider to be outside of normal company operations we believe that will be useful to investors when analyzing period-over-period comparisons of our results. Please refer to our first quarter 2017 earnings press release for additional details on these adjustments.

我將在稍後的電話會議中提供更多指導細節。本季報告的淨利潤為 8,520 萬美元，即稀釋後每股 0.98 美元，而 2016 年第一季報告的淨利潤為 9,580 萬美元，即稀釋後每股 1.12 美元。第一季調整後稀釋每股收益為每股 1.24 美元，而 2016 年第一季稀釋每股收益為 1.35 美元。報告每股收益和調整後每股收益均分別超出我們第一季指引的上限 0.28 美元和 0.29 美元。這一超出預期的推動因素是中國市場表現優於預期，約 0.18 美元。調整後的每股盈餘數據不包括我們認為不屬於公司正常營運的項目，我們認為這些項目在分析我們績效的同期比較時對投資者有用。有關這些調整的更多詳細信息，請參閱我們的 2017 年第一季財報新聞稿。

Currency, while improving over the past couple of months, continues to be a headwind in the year-over-year comparisons. First quarter 2017 reported and adjusted net income were negatively impacted by $9 million or $0.10 for the reported and adjusted diluted EPS due to currency fluctuations. Reported gross margins for the first quarter of 81.4% increased by approximately 40 basis points compared to the prior year period. This increase was driven primarily from the impact of cost-savings through strategic sourcing and self-manufacturing and retail price increases, partially offset by the unfavorable impact of foreign currency fluctuations. First quarter 2017 reported and adjusted SG&A as a percentage of net sales was 39.8% and 38.8%, respectively. Excluding China member payments, adjusted SG&A as a percentage of net sales was 28.7%, approximately 80 basis points higher than the first quarter 2016.

貨幣雖然在過去幾個月有所改善，但與去年同期相比仍然是一個阻力。由於貨幣波動，2017 年第一季報告和調整後的淨利潤受到 900 萬美元的負面影響，或報告和調整後的攤薄每股收益 0.10 美元的負面影響。第一季毛利率為 81.4%，較去年同期成長約 40 個基點。這一增長主要是由於透過策略性採購以及自行製造和零售價格上漲節省成本的影響，但部分被外匯波動的不利影響所抵消。2017 年第一季報告和調整後的 SG&A 佔淨銷售額的百分比分別為 39.8% 和 38.8%。不包括中國會員付款，調整後的銷售及管理費用佔淨銷售額的百分比為 28.7%，比 2016 年第一季高出約 80 個基點。

Our first quarter reported effective tax rate was 25%, while our adjusted effective tax rate was 22.9%, which were approximately 820 and 730 basis points lower than our reported and adjusted tax rates, respectively, for the first quarter of 2016. Included in the reported and adjusted tax rate for the quarter is approximately $4.3 million from the excess tax benefit on share-based compensation. This relates to the adoption of the updated stock compensation accounting standard, ASU 2016-09. This new accounting standard changes the treatment of any tax benefit the company receives from the exercise of equity grants that is different than the intrinsic value at the date of the grant. Such differences in the past were booked directly to equity, but during the first quarter and going forward, such differences are and will continue to be included in the P&L.

我們第一季報告的有效稅率為 25%，而調整後的有效稅率為 22.9%，分別比 2016 年第一季報告和調整後的稅率低約 820 和 730 個基點。本季報告和調整後的稅率包含約 430 萬美元的股權激勵超額​​稅收優惠。這與採用更新的股票薪酬會計準則 ASU 2016-09 有關。這項新會計準則改變了公司因行使股權授予而獲得的不同於授予日內在價值的任何稅收優惠的處理方式。過去此類差異直接記入權益，但在第一季及以後，此類差異將繼續計入損益表。

Shifting over to our regional market highlights. First quarter volume points for the U.S. were down 5% compared to the prior year quarter. This is in line with our expectations and, as we previously stated, the short-term volume softness as a result of our distributors' focus on preparation for the FTC implementation, which has taken away time from normal sales and business-building activity. Throughout this transition, as Rich highlighted, our distributors continue to adapt and educate their organizations to these new tools and procedures, and continued to demonstrate high levels of engagement.

轉向我們的區域市場亮點。美國第一季銷量較去年同期下降 5%。這符合我們的預期，正如我們之前所說，由於我們的經銷商專注於聯邦貿易委員會實施的準備，導致了短期銷售疲軟，這佔用了正常銷售和業務建設活動的時間。正如里奇所強調的，在整個轉變過程中，我們的經銷商不斷調整和教育其組織使用這些新工具和程序，並繼續表現出高水準的參與度。

Looking to the second quarter, the comparisons get much more challenging as the second quarter of last year was the largest volume quarter in the history of the U.S., with April of 2016 being the largest single volume month in U.S. history.

展望第二季度，比較變得更具挑戰性，因為去年第二季度是美國史上成交量最大的季度，而 2016 年 4 月是美國史上單成交量最大的月份。

Moving on to China, first quarter volume points increased 17% compared to the previous year. As stated previously, this was primarily driven by volume in the month of March, which was a pull-forward ahead of a 5% price increase effective April 1. We estimated this impact to be approximately 40 million to 45 million volume points, which will lead to a lower-than-previously planned second quarter for China. Excluding this estimated impact, the year-over-year change in China's first quarter volume trend would have been in line with both the Q4 trend and our expectations for the quarter.

轉向中國，第一季銷量比去年同期成長 17%。如前所述，這主要是由3 月份的成交量推動的，這是4 月1 日生效的價格上漲5% 之前的拉動。這將導致導致中國第二季業績低於先前計劃。排除這一估計影響，中國第一季銷售趨勢的同比變化將符合第四季度的趨勢和我們對該季度的預期。

The Asia Pacific region showed positive year-over-year volume growth for the fourth consecutive quarter. Volume points for the region grew 5% compared to the first quarter in 2016, with notable performance from India, Indonesia and Vietnam. Volume points for South Korea were down 31% and in line with our expectations for the quarter and similar to the fourth quarter of 2016 trend. Volume points for Asia Pacific, excluding South Korea, increased by 13% compared to the prior year period.

亞太地區的銷售量連續第四個季度實現年比正成長。與 2016 年第一季相比，該地區的銷量成長了 5%，其中印度、印尼和越南表現突出。韓國的成交量下降了 31%，符合我們對該季度的預期，並且與 2016 年第四季的趨勢相似。亞太地區（不包括韓國）的銷量比去年同期成長了 13%。

Mexico volume points increased 4% year-over-year, representing the sixth straight quarter of volume growth.

墨西哥銷量年增 4%，連續第六個季度實現銷量成長。

First quarter volume points for EMEA grew 5% compared to the first quarter of 2016, with growth in 6 of the top 10 markets.

與 2016 年第一季相比，歐洲、中東和非洲地區第一季的銷量成長了 5%，前 10 個市場中有 6 個市場實現了成長。

Lastly, volume points for South and Central America, decreased by 14% compared to the first quarter of 2016, with Brazil having a quarterly decline of 13% year-over-year, in line with our forecast for the market.

最後，南美洲和中美洲的成交量較 2016 年第一季下降 14%，其中巴西季度年減 13%，這與我們對市場的預測一致。

Looking at the guidance. For the second quarter 2017, we estimate volume points in the range of a decline of 5% to a decline of 1%. Volume point guidance for the second quarter is significantly impacted by the China pull-forward of volume into the first quarter that I discussed earlier. For the full year 2017, our volume point guidance remains unchanged, a growth of 2% to 5%. Net sales guidance ranges for the second quarter and full year 2017 are estimated between a decline of 4.5% to a decline of 0.5%, and between a growth of 3% to 6%, respectively. On a constant currency basis, we estimate second quarter and full year 2017 net sales to be in the range of a decline of 4% to flat and growth of 3.6% to 6.6%, respectively.

看著指導。對於 2017 年第二季度，我們預計成交量將下降 5% 至 1%。第二季的成交量指引受到我之前討論過的中國成交量提前至第一季的顯著影響。對於 2017 年全年，我們的銷售指引保持不變，成長 2% 至 5%。2017 年第二季和全年的淨銷售額指引範圍預計分別為下降 4.5% 至下降 0.5% 和成長 3% 至 6%。以固定匯率計算，我們預計 2017 年第二季和全年淨銷售額將分別下降 4% 至持平，成長 3.6% 至 6.6%。

For EPS, excluding the potential impact of any future share repurchase, second quarter reported diluted EPS is estimated in the range of $0.65 to $0.85, and adjusted diluted EPS guidance in the range of $0.85 to $1.05. Second quarter adjusted EPS guidance includes a projected currency headwind of approximately $0.03 per diluted share versus the second quarter 2016.

對於每股收益，排除任何未來股票回購的潛在影響，第二季度報告的稀釋每股收益預計在0.65 美元至0.85 美元之間，調整後的稀釋每股收益指引在0.85 美元至1.05 美元之間。第二季調整後每股盈餘指引包括預期與 2016 年第二季相比每股攤薄後每股約 0.03 美元的匯率阻力。

The company has raised its full year reported diluted and adjusted diluted EPS guidance to a range of $3.25 to $3.65 and to a range of $4.05 to $4.45, respectively. Full year 2017 currency headwinds are now projected to be $0.20 compared to 2016, which is $0.30 less than the headwinds included in the guidance the company provided a quarter ago.

該公司已將全年報告稀釋每股收益指引上調至 3.25 美元至 3.65 美元，調整後稀釋每股盈餘指引上調至 4.05 美元至 4.45 美元。與 2016 年相比，2017 年全年貨幣阻力預計為 0.20 美元，比該公司一個季度前提供的指導中包含的阻力少 0.30 美元。

Capital expenditures for the second quarter is expected to be within a range of $40 million to $50 million and for the full year, remain unchanged to $125 million to $155 million.

第二季的資本支出預計在 4,000 萬美元至 5,000 萬美元之間，全年資本支出保持不變，為 1.25 億美元至 1.55 億美元。

Second quarter effective tax rate guidance is 29% to 31% on a reported basis and 26% to 28% on an adjusted basis. Our full year 2017 effective and adjusted tax rate guidance has been updated to ranges of 27.5% to 29.5% and 25% to 27%, respectively.

第二季的有效稅率指引為報告基礎上的 29% 至 31%，調整後的基礎為 26% 至 28%。我們的 2017 年全年有效和調整後稅率指引已分別更新至 27.5% 至 29.5% 和 25% 至 27% 的範圍。

Lastly, in regards to cash and our share repurchase activity. At the end of the quarter, we have $1.8 billion in cash, which is largely comprised of the proceeds from our recent $1.3 billion term note that we discussed on our last quarter's earnings call. And through the end of April, the company has purchased a total of 2.1 million of Herbalife's common shares at an aggregate cost of approximately $119 million or an average cost of $57.70 per share. The shares were purchased in the open market, mostly utilizing a 10b5-1 plan. As of April 28, 2017, the remaining authorized capacity under the company's $1.5 billion share repurchase program was $1.38 billion.

最後，關於現金和我們的股票回購活動。截至本季末，我們擁有 18 億美元現金，其中大部分來自我們在上個季度財報電話會議上討論的最近 13 億美元定期票據的收益。截至4月底，該公司已購買了總計210萬股康寶萊普通股，總成本約1.19億美元，平均成本為每股57.70美元。這些股票是在公開市場購買的，主要採用 10b5-1 計劃。截至2017年4月28日，該公司15億美元股票回購計畫下的剩餘授權能力為13.8億美元。

I will now turn the call back over to Michael before taking questions.

現在，在回答問題之前，我將把電話轉回給邁克爾。

Thanks, John. Before we all open the call for Q&A, I wanted to convey some closing comments. We've had an amazing success over the past 14 years, thanks to our incredible and passionate distributors who are amazing entrepreneurs and continue to pioneer new ways to reach customers, and a special thanks to our 8,000 employees who ensure we deliver quality products catering to our distributors and customers' needs. We are deeply grateful for the dedication and hard work and the relentless passion they bring to each and every day to make Herbalife the premier nutrition company in the world. We have stood together through every twist and turn in our journey and throughout it all, we've built Herbalife bigger, better and stronger. I'm extremely proud of what we have done together and I can't wait to see what the future holds for our Herbalife. Thank you.

謝謝，約翰。在我們開始問答之前，我想傳達一些結束語。在過去的14 年裡，我們取得了驚人的成功，這要歸功於我們令人難以置信和熱情的經銷商，他們是出色的企業家，不斷開拓接觸客戶的新方法，特別感謝我們的8,000 名員工，他們確保我們提供滿足客戶需求的優質產品。我們深深感謝他們每天所付出的奉獻、辛勤工作和不懈的熱情，使康寶萊成為世界上首屈一指的營養品公司。我們一起度過了旅程中的每一次曲折，在這一切過程中，我們將康寶萊建設得更大、更好、更強。我對我們共同所做的事情感到非常自豪，我迫不及待地想看看康寶萊的未來。謝謝。

And now, operator, we can open the call for questions.

現在，接線員，我們可以開始提問。

(Operator Instructions) Our first question comes from the line of Tim Ramey with Pivotal Research Group.

（操作員說明）我們的第一個問題來自 Pivotal Research Group 的 Tim Ramey。

I wanted to get into a couple of questions on share repurchase. Glad to see you did some, it was more modest than I thought you could have done at a pace of kind of 60 million a month. Is there a rationale why the pace is perhaps more measured than we would have thought?

我想問幾個有關股票回購的問題。很高興看到你做了一些，這比我想像的你能以每月 6000 萬的速度完成的要溫和。為什麼步伐可能比我們想像的更加謹慎，有什麼理由嗎？

Well, as we said in the call, Tim, most of the buyback was done through a 10b5. There were certain parameters in the 10b5 that could create acceleration or deceleration of a certain amount. Stock, obviously, moved up during the quarter and that certainly had an impact on the quantity that we were buying. So once you get in a quiet period, you kind of lose control, right? You set up a 10b5 based on the circumstances as you see them before the window closes. The window closed pretty quickly after earnings last time because the year-end earnings is pretty late in the cycle. I want to say we might have had 20 calendar days, just that long, before we set the 10b5 in. And so once you put the 10b5 in, you live with it. So that's probably why it was a little bit lower than what you were thinking.

好吧，正如我們在電話中所說，蒂姆，大部分的回購是透過 10b5 完成。10b5 中的某些參數可以產生一定量的加速或減速。顯然，本季庫存有所增加，這肯定對我們購買的數量產生了影響。所以一旦你進入安靜期，你就會失去控制，對嗎？您可以根據視窗關閉前看到的情況設定 10b5。在上次公佈財報後，這個窗口很快就關閉了，因為年終財報在周期中已經相當晚了。我想說的是，在我們設定 10b5 之前，我們可能有 20 個日曆日，就這麼長。因此，一旦您輸入 10b5，您就可以接受它。所以這可能就是為什麼它比你想像的要低一點的原因。

Okay. But the window reopens and you can adjust the parameters, presumably, in a couple of days?

好的。但是視窗會重新打開，您可以調整參數，大概是在幾天內？

Correct.

正確的。

Okay. The ASU 2016-09, I think if I'm not mistaken, there's a corresponding impact on shares. Just trying to think through what the EPS impact was of implementation there. Can you discuss that at all?

好的。ASU 2016-09，我想如果我沒記錯的話，對股票也會有相應的影響。只是想思考實施對每股盈餘的影響。能討論一下嗎？

Yes, first of all, I don't think it should, but it does impact the share base. Basically, when you use the treasury stock method for determining diluted shares, in the past, if you've got a tax benefit, that created an assumption that you have cash and then you assume you use that cash to buy back stock, which in our case we would. You know -- because the -- no economics change in this, just the new pronouncement require that you can no longer get that benefit in your assumptions throughout those 0.5 million shares, or share base, to be a little more direct.

是的，首先，我認為不應該，但它確實會影響股票基礎。基本上，當你使用庫存股方法來確定稀釋股票時，在過去，如果你有稅收優惠，這就產生了一個假設，即你有現金，然後你假設你用這些現金回購股票，這在我們的情況我們會的。你知道——因為——這方面沒有經濟變化，只是新的聲明要求你不能再在這 50 萬股或股票基礎的假設中獲得這種好處，更直接一點。

Okay. And I had kind of postulated, and I don't know if your comments so far would clear it out, but I had wondered if kind of the extreme engagement that you had with distributors for the last couple of quarters, actually you sort of reenergized the troops a bit as opposed to the example Rich cited of the comp plan changes in 2014 where the negative effect was more pronounced. I might be asking you to just pontificate, but do you think that was true to any degree?

好的。我有一種假設，我不知道你到目前為止的評論是否會澄清這一點，但我想知道你在過去幾個季度與分銷商的極端接觸是否實際上讓你重新煥發了活力與Rich 引用的2014年補償計畫變化的例子相反，當時的負面影響更為明顯。我可能會要求你武斷地說，但你認為這在某種程度上是正確的嗎？

Tim, this is Des. So look, experience has taught us that our distributors respond extremely well to challenges and adversity, that's always been the pattern over the last 37 years and will continue to be. And so certainly the degree of involvement, the partnership, the calls, the meetings, that has certainly been a factor in what we're seeing, but look, the reality is that we're facing a very difficult comp in the second quarter. Obviously, second quarter 2016, the highest volume quarter in the U.S. in Herbalife's history, April was the largest single month in the U.S. So obviously, if you go through it in the second quarter confident about the FTC implementation but just recognize the rate of the comp that we're going into.

提姆，這是德賽爾。所以看，經驗告訴我們，我們的經銷商對挑戰和逆境的反應非常好，這一直是過去 37 年的模式，並將繼續如此。因此，參與程度、合作夥伴關係、電話會議、會議肯定是我們所看到的因素，但事實上，我們在第二季面臨著非常困難的競爭。顯然，2016 年第二季度是康寶萊歷史上美國銷量最高的季度，4 月是美國銷量最大的月份。的比較。

Got it. And just one more while I got you, the -- on the forecasted ETR for the full year, does that assume any future benefits from -- I think you said it didn't assume future benefits from the ASU 16?

知道了。我想問一下您，關於全年的預測 ETR，這是否假設了任何未來的收益——我想您說過它沒有假設 ASU 16 的未來收益？

Yes, it does not. We don't do a projection on equity exercises, right, those are decisions made by employees. And so -- and by the way, it could be positive or negative, right? In our case, likely, it will be positive. Basically, it's any difference between the intrinsic value at grant date and the true value at exercise date goes to the P&L. So in our case, that would be a benefit, given the likelihood of stock exercises, but we do not project it.

是的，事實並非如此。我們不會對股權行使做預測，對吧，這些都是員工自己做的決定。所以——順便說一下，它可能是積極的，也可能是消極的，對吧？在我們的例子中，很可能是正面的。基本上，授予日的內在價值和行使日的真實價值之間的任何差異都會計入損益表。因此，在我們的例子中，考慮到股票行使的可能性，這將是一個好處，但我們不會對此進行預測。

And your next question comes from the line of Mike Swartz with SunTrust. (Operator Instructions)

您的下一個問題來自 SunTrust 的 Mike Swartz。（操作員說明）

I apologize if you've already gone through this, been hopping between calls, but the -- in the China business, it sounds like, John, what you said was essentially the underlying trend in volume points was similar to the fourth quarter. If I do the quick math, it looks like it was down about 10 if we exclude the shift due to the pricing action. So maybe you can give us just a sense of kind of what's going on in the underlying business there, and maybe how to think about that as we move through the year?

如果您已經經歷過這種情況，一直在電話之間跳來跳去，我很抱歉，但是，在中國業務中，約翰，您所說的基本上是成交量點的基本趨勢與第四季度相似。如果我快速算一下，如果我們排除定價行為造成的變化，它看起來會下降約 10。那麼，也許您可以讓我們了解那裡的基礎業務正在發生什麼，以及我們在這一年中如何思考這一點？

Mike, this is Des. So listen, basically, we've engaged a lot of focus on China. We've got a whole team focused on this. We've had some of our international people relocate and are working with the local team there because, again, the fundamental challenge that we reflected in the past are still there, but we're very actively engaged on that. The confidence that we take from what happened, obviously, with this pull-forward because of the price increase, is it's an indication of the significant engagement of our sales force in China and the strong consumer demand for our products. So both of those are very positive. And then in terms of the trends, in terms of focus on clubs, on best practices, on reengaging with our customers, on using social media as a supplement rather in the way of doing the business, all those initiatives are still in place and will continue.

麥克，這是德賽爾。聽著，基本上，我們非常關注中國。我們有一整個團隊專注於此。我們已經讓一些國際員工重新安置，並正在與那裡的當地團隊合作，因為我們過去反​​映的根本挑戰仍然存在，但我們非常積極地參與其中。顯然，由於價格上漲而導致的這種提前，我們對所發生的事情充滿信心，這表明我們在中國的銷售人員的積極參與以及消費者對我們產品的強勁需求。所以這兩者都是非常積極的。然後就趨勢而言，就對俱樂部的關注、最佳實踐、與客戶重新互動、使用社交媒體作為補充而不是以開展業務的方式而言，所有這些舉措仍然存在，並將繼續存在。

Got it. If I could just build on that, because what the -- Q2 is a unique quarter. We've got a couple things going on that's going to make it challenging from a comp standpoint. One is, in China, we pulled a lot of -- our members pulled a lot of volume into Q1, which will certainly hurt the comp in Q2. And then U.S., as Des said, Q2 last year was the record high for the business and April was the record month. And so we've got to comp that, at the same time, we're going live with the tools for the FTC agreement, and the nuance between ending in April without the requirement to use them, even though we're using them and starting now with the requirement to use them. So we do think Q2 is the bottom for both of those markets, but Q2 is a difficult comparable.

知道了。如果我可以以此為基礎，因為第二季是一個獨特的季度。從比賽的角度來看，我們發生了一些事情，這將使其變得具有挑戰性。一個是，在中國，我們的會員在第一季拉了大量交易量，這肯定會損害第二季的業績。然後是美國，正如 Des 所說，去年第二季是該業務的歷史新高，四月是創紀錄的月份。因此，我們必須彌補這一點，同時，我們將使用 FTC 協議的工具，以及在 4 月結束時無需使用它們之間的細微差別，即使我們正在使用它們，現在從使用它們的要求開始。因此，我們確實認為第二季是這兩個市場的底部，但第二季很難進行比較。

Okay, that's helpful. And then maybe just an update on the Tasly JV partnership that you announced, I believe it was last quarter, where we stand today. And just maybe timing of -- I know you guys are teaming up with some new products, so timing of when maybe you start to roll that out?

好的，這很有幫助。然後也許只是您宣布的天士力合資夥伴關係的最新情況，我相信這是上個季度的情況，也就是我們今天的情況。我知道你們正在合作開發一些新產品，那麼你們什麼時候開始推出呢？

I'll start with your second part first. So what we said in the last call is still consistent where we are today, which is it's much more of a next year benefit. The Tasly joint venture, as we announced, it was a Letter of Intent, I think that it's not yet done. It's close, we're working diligently to get it done. And when it's done, we'll have more to say.

我先從第二部分開始。因此，我們在上次電話會議中所說的仍然與我們今天的情況一致，這更多的是明年的好處。天士力合資企業，正如我們所宣布的，這是一份意向書，我認為它還沒有完成。已經很接近了，我們正在努力完成它。當它完成後，我們會有更多的話要說。

Your next question comes from the line of Beth Kite with Citi.

你的下一個問題來自花旗集團的貝絲‧凱特 (Beth Kite)。

I had one question still on China before moving to a couple other markets. And I just wanted to understand, so the price changes that went into effect during April, does that present risks in so much as the market is already going through a little bit of turmoil in general, what was logic behind that? And are you concerned that the higher prices pose a greater challenge?

在轉向其他幾個市場之前，我還有一個關於中國的問題。我只是想了解，四月生效的價格變化是否會帶來風險，因為市場總體上已經經歷了一點動盪，這背後的邏輯是什麼？您是否擔心更高的價格會帶來更大的挑戰？

We don't, Beth. The last price increase we took in China was in 2011 on a worldwide basis. Our general philosophy is price increases on a regular basis, at or below the rate of inflation. We see significant strength in terms of our underlying business in China. And so frankly, the 5% price increase really just takes into account what has happened in recent years in terms of inflation and so on. We've got a group of highly engaged leaders there. I think that was evidenced in what we saw in March in terms of that -- the impact of that price increase and them, reaching out to current and former customers. And so they know what to focus on going forward.

我們不知道，貝絲。我們在中國上一次在全球範圍內漲價是在 2011 年。我們的整體理念是價格定期上漲，漲幅等於或低於通膨率。我們看到我們在中國的基礎業務具有顯著的優勢。坦白說，5%的漲價其實只是考慮到了近年來通膨等方面的情況。我們那裡有一群高度敬業的領導者。我認為這在我們三月看到的情況中得到了證明——價格上漲的影響以及他們對當前和以前客戶的影響。因此他們知道未來要重點關注什麼。

Got it. Okay. Fair enough. Finally, EMEA region, where the local currency sales were up 6%. The couple of countries that you cited in the Q were down slightly below that. Could you help us understand some of the countries in there that were stronger?

知道了。好的。很公平。最後是 EMEA 地區，該地區以當地貨幣計算的銷售額成長了 6%。您在問題中提到的幾個國家的情況略低於此。您能幫助我們了解其中一些更強大的國家嗎？

Are you looking for -- sorry, I didn't understand the question. Total sales reps, average active -- can you just...

您在尋找 - 抱歉，我沒聽懂這個問題。銷售代表總數、平均活躍人數－您能...

I'm sorry. I'm thinking about local currency sales growth, since it's the driver in EMEA, just to sort of think about that for the rest of the year. Which country, since Russia was 4% and Italy 4% and Spain 4%, what were some of the ones that's perhaps stronger as you comp some tougher local currency sales growth the next couple of quarters?

對不起。我正在考慮當地貨幣銷售成長，因為它是歐洲、中東和非洲地區的驅動力，只是為了考慮今年剩餘時間的情況。哪個國家（俄羅斯為 4%，義大利為 4%，西班牙為 4%），當您考慮未來幾季更強勁的本幣銷售成長時，哪些國家可能會更強勁？

Yes, listen, Beth, what's driving growth in EMEA is the continued adoption -- successful adoption of the marketing plan changes that we've put in place a couple of years ago, the focus on daily consumption. So markets like Italy, that have always been solidly based, they continue to lead that trend. We're also seeing some other Western European markets, we're pleased to see what's happening in Germany, that has been flat for so many years, return to growth. So basically, it's just continuation of the same strategies that you're going to see just continue to evolve.

是的，聽著，貝絲，推動歐洲、中東和非洲地區成長的因素是持續採用——成功採用我們幾年前實施的營銷計劃變革，即關注日常消費。因此，像義大利這樣的市場一直有著堅實的基礎，它們將繼續引領這一趨勢。我們也看到其他一些西歐市場，我們很高興看到多年來一直持平的德國正在恢復成長。所以基本上，這只是您將看到的相同策略的延續，並不斷發展。

Okay, great. And then I can keep walking around the world for 2 more countries, specifically. Brazil, what -- it feels like you have such a good stick on what you want to go about changing in China. Where are you in your decision-making or plans to execute to potentially reaccelerate growth in Brazil?

好的，太好了。然後我就可以繼續環遊世界，特別是另外兩個國家。巴西，什麼－感覺你對中國想要改變的事情有很好的堅持。為了加速巴西的成長，您的決策或執行計畫處於什麼階段？

Yes, so look, we have a lot of things happening in Brazil, Beth, but the reality in Brazil, unfortunately, is that it's a very different economic and geopolitical situation to China. Obviously, a lot of distractions there. The majority of our business in Brazil is done with credit cards because most orders are placed online. I think you may know in Brazil, you're facing interest -- credit card interest of 30% a month. So the amount of cash that's available in the market, both for our distributors and for consumers, is just greatly restricted simply because of the economic environment. And although we continue to see our high levels of distributor engagement and lots of activity, lots of initiatives, the reality is that you've got just a very tough environment for us to do business in there. And frankly, that's likely to continue through the rest of this year.

是的，所以你看，貝絲，我們在巴西發生了很多事情，但不幸的是，巴西的現實是，它的經濟和地緣政治形勢與中國非常不同。顯然，那裡有很多幹擾。我們在巴西的大部分業務都是透過信用卡完成的，因為大多數訂單都是在網路上的。我想你可能知道，在巴西，你面臨利息——信用卡每月 30% 的利息。因此，由於經濟環境的原因，市場上可供我們的經銷商和消費者使用的現金數量受到很大限制。儘管我們繼續看到經銷商的高水準參與和大量的活動、大量的舉措，但現實是我們在那裡開展業務的環境非常艱難。坦白說，這種情況可能會持續到今年剩餘時間。

Okay, great. And then in the U.S., you did some great data points in terms of preferred members and receipting and the like. Do you have a sense across your Nutrition Clubs here in the U.S. how many Nutrition Club owners are kind of like ready to go in terms of -- do you still have to reach x percent to really kick them the new tools and train them per se?

好的，太好了。然後在美國，您在首選會員和收據等方面做了一些很棒的數據點。您是否知道美國的營養俱樂部有多少營養俱樂部所有者已經準備好了——您是否還需要達到 x% 才能真正讓他們使用新工具並對他們進行培訓？

So Beth, this is Rich. So I think that look at the receipt information we gave you and having over 2.2 million receipts last month was encouraging to us and it tells us -- and a lot of those were Nutrition Club receipts, tells us that this continues to have upside as far as engagement. As you know, April was not the go live month. We expect more receipts in the month of May when it actually will affect how we compensate our distributors. So like anything, like that telephone game we played back in kindergarten, it's going to take time. We have a war room; our distributors are active. This is job 1 for everybody right now in the month of May, to make sure that we can get as high receipting percentage as possible, and our clubs will lead the way.

貝絲，這是里奇。因此，我認為看看我們提供給您的收據信息，上個月有超過220 萬張收據對我們來說是令人鼓舞的，它告訴我們，其中很多是營養俱樂部的收據，告訴我們到目前為止，這仍然有上升的空間。如你所知，四月不是上線月份。我們預計五月會有更多的收入，這實際上會影響我們補償經銷商的方式。所以就像任何事情一樣，就像我們在幼兒園玩的電話遊戲一樣，這需要時間。我們有一個作戰室；我們的經銷商很活躍。這是五月時每個人的首要任務，以確保我們能夠獲得盡可能高的收款率，並且我們的俱樂部將帶頭。

Great. Okay. And then one last question for John on guidance. Do you -- so I think that basically for the incremental $0.40, it sounds like a large part of that is FX, maybe some of the tax changes, especially seeing that great benefit hit in the first quarter. Was there any sort of offsets that anything turn more negative or was everything just kind of just more incremental and positive?

偉大的。好的。然後是約翰的最後一個關於指導的問題。所以我認為基本上對於增量 0.40 美元來說，聽起來很大一部分是外匯，也許是一些稅收變化，特別是看到第一季帶來的巨大好處。是否存在某種抵消，使任何事情變得更加消極，或者一切只是變得更加漸進和積極？

So look, I'll try to roll it forward, right? So it's $0.40 in the high end and the low end. We beat the high end by $0.29 in Q1, $0.18 of that is timing from China, so you really got $0.11 in Q1. We took the year by $0.40. That incremental $0.29, $0.26 if it is currency. So the rest, the $0.03, is tax rate, a lot of which was already booked in Q1 because of the excess tax benefit on the comp plan stuff. So the $0.03 is made up of a handful of things that go each way, but nothing material that's a negative offset.

所以看，我會盡力向前推進，對嗎？所以高端和低端的價格都是 0.40 美元。我們在第一季比高端高出 0.29 美元，其中 0.18 美元來自中國，所以第一季你確實獲得了 0.11 美元。我們把這一年的利潤提高了 0.40 美元。增量為 0.29 美元，如果是貨幣則為 0.26 美元。因此，剩下的 0.03 美元是稅率，其中許多已經在第一季預訂，因為補償計劃的內容有超額稅收優惠。所以 0.03 美元是由一些相互影響的東西組成的，但沒有任何實質的東西是負抵銷的。

We have no further questions in queue at this time.

目前我們沒有其他問題在排隊。

So let me do a quick closing here, and it's going to be probably slightly emotional for me because I think you all know it's been an honor for me to lead this incredible company over the past 14 years. For those of you who have been shareholders with us a long time, you've seen us evolve as a company from 50 to 94 countries. We're 5x greater in the increase of our market cap, but above all, we're closer and more engaged relation -- we have a closer and more engaged relationship with our distributor leaders, our employee team and a few of our investors. And with all of our investments in infrastructure, in all the different things that we're doing, we're incredibly well-positioned for the future. This is a great future ahead for us, and I look forward to be engaged and part of it to help build our company stronger and better and as a shareholder, my interest, I think you know, are aligned with all of yours. As Vice Chair of this company going forward, I'm curious in helping our company continue on our journey to be a positive and impactful member of the communities where we live and work. It's my next chapter in my Herbalife. So many thanks to you for your support and enthusiasm over the years and for the shared confidence we all have for our incoming CEO, Rich Goudis. That confidence is extremely high across the breadth of this company and with our distributors. And too, our distributors, we just mentioned our customers and employees, a heartfelt thank you. And as I say to our team, onward and upward.

讓我在這裡做一個快速的結束，這對我來說可能會有點情緒化，因為我想你們都知道在過去 14 年裡領導這家令人難以置信的公司對我來說是一種榮幸。對於那些長期擔任我們股東的人來說，你們已經看到我們作為一家公司從 50 個國家發展到 94 個國家。我們的市值成長了 5 倍，但最重要的是，我們的關係更加密切和更加密切——我們與經銷商領導、我們的員工團隊和一些投資者有著更密切和更密切的關係。透過我們對基礎設施的所有投資，以及我們正在做的所有不同事情，我們為未來做好了令人難以置信的有利準備。這對我們來說是一個美好的未來，我期待參與並參與其中，幫助我們的公司變得更強大、更好，作為股東，我想你們知道，我的利益與你們所有人的利益是一致的。作為公司的副主席，我很想幫助我們的公司繼續我們的旅程，成為我們生活和工作的社區中積極且有影響力的成員。這是我康寶萊的下一個篇章。非常感謝您多年來的支持和熱情，以及我們對即將上任的執行長 Rich Goudis 的共同信心。整個公司和我們的經銷商都對此充滿信心。還有我們的經銷商，我們剛剛提到了我們的客戶和員工，衷心感謝你們。正如我對我們團隊所說的那樣，不斷前進。

And on behalf of Rich and the team, we look forward to being with you next quarter. Thank you.

我們代表 Rich 和團隊，期待下個季度與您合作。謝謝。

Thank you for your participation. This does conclude today's conference call, and you may now disconnect.

感謝您的參與。今天的電話會議到此結束，您現在可以掛斷電話了。