Honest Company Inc (HNST) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to The Honest Company's second quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to turn the conference over to, Ms. Elizabeth Bouquard, Senior Director, Investor Relations at The Honest Company. Please go ahead.

女士們先生們，謝謝你們的支持。歡迎參加 The Honest Company 的 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給The Honest Company 投資者關係高級總監Elizabeth Bouquard 女士。請繼續。

Good afternoon, everyone. Thank you for joining our second quarter 2024 conference call. Joining me today are Carla Vernon, our Chief Executive Officer; and Dave Loretta, our Chief Financial Officer. Before we start, I would like to remind you that we will make certain statements today that are forward-looking within the meaning of the Federal Securities Laws, including statements about the outlook of our business and other matters referenced in our earnings release issued today.

大家下午好。感謝您參加我們的 2024 年第二季電話會議。今天加入我的是我們的執行長 Carla Vernon；以及我們的財務長 Dave Loretta。在開始之前，我想提醒您，我們今天將做出聯邦證券法含義內的某些前瞻性聲明，包括有關我們業務前景的聲明以及我們今天發布的收益報告中引用的其他事項。

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release issued today as well as our SEC filings for a more detailed description of the risk factors that may affect our results.

這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果出現重大差異。請參閱我們今天發布的收益報告以及我們向 SEC 提交的文件，以了解可能影響我們業績的風險因素的更詳細描述。

Please also note that these forward-looking statements reflect our opinions only as of the date of this call and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events, except as required by law.

另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的意見，我們沒有義務根據新資訊或未來事件修改或公開發布對這些前瞻性陳述的任何修改結果，法律要求的除外。

Also during this call, we will discuss non-GAAP financial measures which adjust our GAAP results to eliminate the impact of certain items. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP to GAAP measures in the financial results section of today's earnings release. A live broadcast of this call is also available on the Investor Relations section of our website at investors.honest.com. With that, I'll turn it over to Carla.

此外，在這次電話會議中，我們還將討論非公認會計原則財務措施，這些措施調整我們的公認會計原則結果，以消除某些項目的影響。您將在今天財報的財務表現部分找到有關這些非 GAAP 財務指標的更多資訊以及這些非 GAAP 與 GAAP 指標的調整表。本次電話會議的現場直播也可在我們網站的投資者關係部分觀看：investors.honest.com。這樣，我就把它交給卡拉。

Thanks, Elizabeth. Hello everyone, and thank you for joining us today. As we exit the first half of 2024, I'm pleased to share that we achieved another quarter of improved financial results on both the top and bottom line, exceeding our expectations. This strong performance is evidence of our team's commitment to strengthening the financial foundation of The Honest Company, while also accelerating the growth momentum of the Honest brand.

謝謝，伊麗莎白。大家好，感謝您今天加入我們。在 2024 年上半年即將結束之際，我很高興地告訴大家，我們的財務表現在營收和利潤方面又實現了一個季度的改善，超出了我們的預期。這一強勁的業績證明了我們團隊致力於加強 The Honest 公司的財務基礎，同時也加速了 Honest 品牌的成長勢頭。

Our achievements in the second quarter illustrate that our transformation pillars of brand maximization, margin enhancement, and operating discipline are driving improved performance and a stronger financial foundation.

我們第二季的成就表明，我們的品牌最大化、利潤提升和營運紀律等轉型支柱正在推動業績改善和財務基礎更加牢固。

In the quarter, our results included four notable financial achievements. First, we delivered the highest quarterly revenue in the history of The Honest Company with $93 million in sales, which was an increase of 10% year over year.

本季度，我們的業績包括四項顯著的財務成就。首先，我們實現了 The Honest Company 史上最高的季度收入，銷售額為 9,300 萬美元，年增 10%。

Second, we achieved a gross margin of 38%, representing more than 1,100 basis points of growth year over year. Third, we improved our profitability by achieving positive adjusted EBITDA of $8 million which is our third consecutive quarter of delivering positive adjusted EBITDA.

其次，我們實現了38%的毛利率，年增超過1,100個基點。第三，我們透過實現 800 萬美元的正向調整 EBITDA 提高了獲利能力，這是我們連續第三個季度實現正調整 EBITDA。

And finally, in Q2, we saw our fifth consecutive quarter of positive cash flow. This strong performance and momentum for the first half of the year gives us confidence to increase our full year guidance for both revenue and adjusted EBITDA.

最後，在第二季度，我們連續第五個季度實現正現金流。上半年的強勁表現和勢頭使我們有信心提高全年收入和調整後 EBITDA 的指導。

Our success this quarter was broad based across our portfolio and business model. In particular, the Honest brand is performing notably well in our baby personal care categories as the appeal of our clean and sustainably designed lotions, body washes, and bath products continues to grow.

本季我們的成功廣泛地基於我們的投資組合和業務模式。特別是，隨著我們清潔且可持續設計的乳液、沐浴露和沐浴產品的吸引力不斷增長，誠實品牌在我們的嬰兒個人護理類別中表現尤為出色。

According to the National Center for Health Statistics, the presence of skin allergies among children has nearly doubled since 1997. Also, estimates by KBV Research, as outlined in our investor presentation earlier this year indicate that the market for sensitive skin care products is expected to be $80 billion by 2030, which is nearly double the market size today.

根據國家衛生統計中心的數據，自 1997 年以來，兒童皮膚過敏的人數幾乎增加了一倍。此外，正如我們今年稍早的投資者介紹中所述，KBV Research 的估計表明，到 2030 年，敏感肌膚護理產品市場預計將達到 800 億美元，幾乎是目前市場規模的兩倍。

These consumer trend indicators are well aligned with the high standards that Honest delivers in our clean and gentle products. For example, our newly relaunched fragrance free sensitive skin collection not only fits these important trends, but its performance in the quarter is a great example of our brand maximization pillar.

這些消費者趨勢指標與 Honest 在清潔溫和產品中所體現的高標準非常一致。例如，我們新推出的無香敏感肌膚系列不僅符合這些重要趨勢，而且其本季的表現也是我們品牌最大化支柱的一個很好的例子。

We doubled the revenue of our sensitive Skin collection year over year by expanding these items into all Target stores, and our sensitive skin shampoo plus body wash has become one of our top five selling baby items on Amazon this year.

透過將這些商品擴展到所有 Target 商店，我們的敏感皮膚系列收入同比翻了一番，我們的敏感皮膚洗髮精和沐浴露已成為今年亞馬遜上最暢銷的五種嬰兒用品之一。

In addition to our clean product benefits, our community looks to honest for our approach to sustainable design. The early success of our new milk carton style refills for our bubble bath and shampoo plus body wash products are proving to be a great solution in reducing the plastic footprint of our most loyal community members.

除了我們的清潔產品優勢之外，我們的社區還希望誠實地對待我們的永續設計方法。我們的泡泡浴、洗髮精和沐浴露產品的新型牛奶盒式補充裝的早期成功被證明是減少我們最忠實的社區成員的塑膠足蹟的一個很好的解決方案。

These 32-ounce refills use 89% less plastic when swapped with three of our 10-ounce size bottles and the milk carton style packaging allows them to be easy to pour. Having recently launched in Target and on Amazon, these new refills are off to a strong start and for anyone who loves a good hot bubble bath, with these refills by your side, we give you permission to enjoy the bubbliest of spa moments as much as you want.

這些 32 盎司補充裝與我們的三個 10 盎司大小的瓶子互換時，可減少 89% 的塑膠用量，而且牛奶盒式包裝使其易於倒出。這些新的補充裝最近在Target 和亞馬遜上推出，這是一個良好的開端，對於任何喜歡享受優質熱水泡泡浴的人來說，有了這些補充裝在您身邊，我們允許您享受最泡沫的水療時刻你想要的。

Another key driver of our success this quarter is the strong alignment we have across our retailer partnerships. As you know, the Honest brand is a little over 13 years old this year, and we are celebrating the 10th anniversary of our original launch into Target stores.

我們本季成功的另一個關鍵驅動力是我們與零售商合作夥伴關係的緊密結合。如您所知，Honest 品牌今年已有 13 年多一點的歷史，我們正在慶祝我們最初進入 Target 商店 10 週年。

In fact, if you visit a Target store over the next two months, you'll see a festive collection of limited edition diapers and wipes featuring whimsical red and white prints. To bring this partnership to life, our community of content creators has been finding adorable ways to bring Honest's 10th Target birthday to life with trend setting baby birthday parties full of these limited edition wipes and diapers along with matching decorations and party treats.

事實上，如果您在接下來的兩個月內造訪 Target 商店，您會看到一系列帶有異想天開的紅白印花的限量版尿布和濕紙巾的節日系列。為了將這種合作關係變為現實，我們的內容創作者社區一直在尋找可愛的方式，透過引領潮流的嬰兒生日派對，用這些限量版濕巾和尿布以及配套的裝飾品和派對零食，將Honest的10 歲Target 生日帶入生活。

We hope you'll check out our Honest social media channels on TikTok, Instagram, and Pinterest to be part of the birthday fun.

我們希望您能在 TikTok、Instagram 和 Pinterest 上查看我們的誠實社交媒體頻道，享受生日樂趣。

Overall, our second quarter results are evidence that our transformation pillars are creating a stronger financial foundation and that we are well-poised to advance our strategy to be in all the places that our community shops with the hero products they love in the formats they want. And now I'll turn it over to Dave to share the financial results of our second quarter and details on our updated financial outlook.

總體而言，我們第二季度的業績證明我們的轉型支柱正在創造更強大的財務基礎，並且我們已準備好推進我們的策略，以便在我們的社區以他們想要的形式購買他們喜歡的英雄產品的所有地方。現在我將把它交給戴夫，分享我們第二季度的財務業績以及我們更新的財務前景的詳細資訊。

Thank you, and welcome, everyone. We are pleased to report our second quarter results reflecting strong growth momentum that accelerated as the quarter progressed and landed ahead of our expectations. Shipments to our key retail customers were driven by positive consumption trends, inventory builds in preparation for several notable retailer events and expansion of key hero items into more doors.

謝謝大家，也歡迎大家。我們很高興地報告第二季業績，反映出隨著本季的進展而加速的強勁成長勢頭，並超出了我們的預期。對我們主要零售客戶的發貨是由積極的消費趨勢、為幾個著名的零售商活動做準備而增加的庫存以及將主要英雄商品擴展到更多的門所推動的。

The actions we took over the last year to address product and supply chain costs and adjusting to a more strategic approach with our trade promotion dollars have continued to support an expanded gross margin reaching a new high of 38% for the company.

我們去年採取的解決產品和供應鏈成本的行動，以及利用貿易促進資金採取更具策略性的方法，繼續支持公司擴大毛利率，達到 38% 的新高。

The benefits we are realizing from all aspects of our transformation pillars continue to materialize and improve financial results that are approaching operating income profitability and have strengthened our foundation to support growth.

我們從轉型支柱的各個方面實現的效益繼續實現並改善財務業績，接近營業收入盈利能力，並增強了我們支持成長的基礎。

With the first half of 2024 outpacing our initial guidance on the top and bottom line, we are providing an update to our full year outlook, which I will touch on shortly, but first, I'll review the details of our second quarter results.

由於 2024 年上半年的營收和利潤超出了我們最初的指導，我們將更新全年展望，我將很快談到這一點，但首先，我將回顧第二季業績的詳細資訊。

Net revenue for the second quarter was $93 million up 10% driven by distribution gains and strong consumption growth in tracked channels. In particular, baby apparel, wipes and baby personal care are growing market share.

第二季淨收入為 9,300 萬美元，成長 10%，這得益於分銷收益和追蹤通路的強勁消費成長。特別是嬰兒服裝、濕紙巾和嬰兒個人護理品的市場份額正在不斷增長。

Our tracked channel data was up high single digits in the quarter driven by expanded product assortment in baby personal care and wipes, including new flushable wipes and incremental pack size configurations.

由於嬰兒個人護理和濕紙巾產品種類的擴大，包括新的可沖散濕紙巾和增量包裝尺寸配置，我們追蹤的通路數據在本季度出現了高個位數成長。

We're leaning into what is working across our baby portfolio to offer more options on our best-selling innovations and expanding shelf space with our newer large scale customer Walmart.

我們正在努力研究我們的嬰兒產品組合，為我們最暢銷的創新產品提供更多選擇，並與我們新的大型客戶沃爾瑪一起擴大貨架空間。

This year, we have increased our wipes category footprint in our Walmart assortment, including launching our new toddler flushable wipes in a subset of Walmart stores and offering larger pack sizes on shelf.

今年，我們增加了沃爾瑪產品中的濕紙巾類別足跡，包括在部分沃爾瑪商店推出新的幼兒可沖散濕紙巾，並在貨架上提供更大的包裝尺寸。

In addition, I mentioned revenue growth driven by notable retailer events. This includes limited edition diapers and wipe prints in Walmart stores in celebration of Hispanic Heritage Month beginning this month and extending through October.

此外，我還提到了著名零售商活動所推動的收入成長。這包括沃爾瑪商店內的限量版尿布和擦拭布印花，以慶祝從本月開始持續到十月的西班牙裔傳統月。

Also, our annual focus on Amazon Prime Day in July drove a healthy growth in shipments in the second quarter. During the two-day event, our unit volume on Amazon increased over 30% driven by baby personal care and wipes, and our skin care assortment doubled in volume compared to last year.

此外，我們對 7 月亞馬遜 Prime Day 的年度關注推動了第二季度出貨量的健康成長。在為期兩天的活動中，在嬰兒個人護理品和濕巾的推動下，我們在亞馬遜上的單位銷量增長了 30% 以上，我們的護膚品品種的銷量與去年相比增加了一倍。

Gross margin for the second quarter was 38%, reaching a new high and expanding over 1,100 basis points versus last year. Of this improvement, roughly 500 basis points is attributable to price increases and trade spending efficiencies, 400 basis points is due to product and supply chain cost savings, and 200 basis points is due to mix of higher margin products and sales channels.

第二季毛利率達38%，創歷史新高，較去年同期擴大逾1,100個基點。其中，約 500 個基點歸因於價格上漲和貿易支出效率，400 個基點歸因於產品和供應鏈成本節省，200 個基點歸因於利潤率較高的產品和銷售管道的組合。

We began adjusting prices in early 2023 on our diaper assortment and enter 2024 with a lower cost structure that will continue through most of the year. In mid-2023, we raised prices on baby personal care, cosmetics, and skin care, which we have now largely lapped midway through Q3.

我們於 2023 年初開始調整尿布品種的價格，並以較低的成本結構進入 2024 年，這種結構將持續全年大部分時間。2023 年中期，我們提高了嬰兒個人護理品、化妝品和皮膚護理品的價格，目前我們已在第三季中期基本實施了這些價格。

Our sales teams continue to strike a good balance between pricing and trade promotion investments tailored by customer and product growth objectives. We expect to continue to maintain spending flexibility and trade promotions through the balance of the year to drive category and hero item performance as needed.

我們的銷售團隊繼續在根據客戶和產品成長目標量身定制的定價和貿易促進投資之間取得良好的平衡。我們預計將在今年剩餘時間內繼續保持支出靈活性和貿易促銷，以根據需要推動類別和英雄項目的表現。

Cost savings initiatives within our supply chain are in full effect and support a sustainable benefit to margins. However, we continue to monitor certain transportation and shipping costs for volatility that may emerge as global activity ramps up in the back half of the year. Our actions that have impacted our portfolio's profitability as guided by our margin enhancement pillar continue to realize a healthy flow through of unit volume growth to gross profit growth.

我們供應鏈內的成本節約措施已全面生效，並支持可持續的利潤效益。然而，隨著今年下半年全球活動的增加，我們將繼續監控某些運輸和運輸成本可能出現的波動。在我們的利潤提升支柱的指導下，我們採取的行動影響了我們投資組合的獲利能力，繼續實現單位銷售成長到毛利成長的健康流動。

Operating expenses overall increased $3 million compared to the second quarter last year, but realized 30 basis points of improvement as a percentage of revenue. Included in this quarter's SG&A expense of $26 million was a one-time accelerated restricted stock grant expense related to our previously disclosed separation agreement with Honest's Founder. Absent this expense, our SG&A would have been $19 million for the quarter.

與去年第二季相比，營運費用整體增加了 300 萬美元，但佔收入的百分比提高了 30 個基點。本季 2,600 萬美元的 SG&A 費用中包括與我們先前揭露的與 Honest 創辦人的離職協議相關的一次性加速限制性股票授予費用。如果沒有這筆費用，我們本季的 SG&A 將為 1900 萬美元。

Marketing expense in the quarter of $11 million increased $2 million versus last year and reflects the commitment to brand building that is integral to our brand maximization pillar. We continue to seek a balanced approach to marketing investments through upper funnel awareness driving spend and mid to lower funnel spend to drive digital conversion, drive trial, and accelerate retail velocities.

本季的行銷費用為 1,100 萬美元，與去年相比增加了 200 萬美元，這反映了我們對品牌建立的承諾，而品牌建設是我們品牌最大化支柱不可或缺的一部分。我們繼續尋求平衡的營銷投資方法，透過上漏斗意識推動支出和中下漏斗支出來推動數位轉換、推動試用並加快零售速度。

Adjusted EBITDA for the second quarter was positive $8 million compared to negative $4 million last year. This is our third consecutive quarter of positive adjusted EBITDA and further demonstrates our ability to generate consistent profitable growth, which is a key tenant of our strategic growth objective.

第二季調整後 EBITDA 為正 800 萬美元，而去年為負 400 萬美元。這是我們連續第三個季度調整後的 EBITDA 為正值，進一步證明了我們實現持續獲利成長的能力，這是我們策略成長目標的關鍵。

Turning to the balance sheet. We ended the quarter with $37 million in cash, an increase of $19 million versus last year. We continue to operate with disciplined management of our balance sheet by driving revenue growth year to date of 7% on lower working capital excluding cash over the same time. We also have no debt outstanding and no expected needs to draw on our line of credit.

轉向資產負債表。本季結束時，我們的現金為 3,700 萬美元，比去年增加了 1,900 萬美元。我們繼續嚴格管理資產負債表，在不包括現金的營運資本減少的情況下，推動今年迄今的收入成長 7%。我們也沒有未償債務，也沒有預期需要動用我們的信用額度。

Overall, our second quarter financial results support our continued confidence in our long-term strategic plan and our updated outlook for 2024. Due to the strong momentum and financial results achieved in the first half, we are raising our full year financial outlook for both revenue and adjusted EBITDA.

總體而言，我們第二季的財務表現支持了我們對長期策略計畫和 2024 年最新展望的持續信心。由於上半年取得的強勁勢頭和財務業績，我們上調了全年收入和調整後 EBITDA 的財務預期。

This includes full year revenue to be up mid to high-single digit percentage growth over prior year. Previously, we expected revenue to be up low to mid-single digit percentage growth. The updated revenue outlook reflects continued distribution gains and strength across our baby products and wipes portfolio as we continue to make investments in growing the business.

這包括全年收入比上年實現中高個位數百分比成長。此前，我們預計收入將出現低至中個位數的百分比成長。更新後的收入前景反映出，隨著我們繼續投資發展業務，我們的嬰兒產品和濕紙巾產品組合的分銷持續成長和實力增強。

We expect revenue growth in the second half of the year to be similar to growth of 7% achieved in the first half of the year. While we are pleased with our overall growth momentum to date, keep in mind that our largest category diapers is experiencing competitive activity and overall softening category trends. We'll continue to monitor closely and react to any changes needed to support our business for the long term.

我們預計下半年收入成長將與上半年 7% 的成長相近。雖然我們對迄今為止的整體成長勢頭感到滿意，但請記住，我們最大的尿布類別正在經歷競爭活動和整體軟化類別趨勢。我們將繼續密切監控並應對長期支持我們業務所需的任何變化。

We are also raising our outlook for adjusted EBITDA for the full year. We now expect adjusted EBITDA to be in the $15 million to $18 million range. Previously, our guidance called for adjusted EBITDA to be in the positive low single digit to mid-single digit millions range. This updated adjusted EBITDA outlook reflects our higher revenue outlook for the full year, structural cost, savings, and marketing investments that we have plans to increase relative to the first half.

我們也上調了全年調整後 EBITDA 的預期。我們現在預計調整後的 EBITDA 將在 1500 萬至 1800 萬美元範圍內。先前，我們的指引要求調整後 EBITDA 處於正數低個位數至中個位數百萬範圍內。這項更新後的調整後 EBITDA 前景反映了我們對全年收入前景、結構成本、節省和行銷投資的更高預期，我們計劃相對於上半年增加這些投資。

The combination of the strength of our team's execution with a focus on operating discipline and healthy first half results gives us confidence in raising our full year financial outlook. We remain focused on executing our plan with the goal of building long-term shareholder value through a stronger and more scaled honest brand and company. And with that, I'll turn the call over to the operator.

我們團隊的執行力與對營運紀律的關注以及健​​康的上半年業績相結合，使我們有信心提高全年財務前景。我們仍然專注於執行我們的計劃，目標是透過更強大、規模更大的誠實品牌和公司建立長期股東價值。然後，我會將電話轉給接線生。

(Operator Instructions) Aaron Grey, Alliance Global Partners.

（操作員說明）Aaron Grey，Alliance Global Partners。

Hi, good evening. Thank you for the questions and congratulations on the strong quarter there. First question for me, just in terms of Walmart, you highlighted the continued progress you have with the retailer there, a toddler flushable wipes and some limited edition prints as well.

嗨，晚上好。感謝您提出問題並祝賀該季度的強勁表現。我的第一個問題，就沃爾瑪而言，您強調了與該零售商的持續進展，包括幼兒可沖散濕巾和一些限量版印刷品。

Just wondering if you could provide some additional commentary, maybe in terms of how it's progressing, some more data points on your permanent shelf space and SKUs that you'll be planning to have available at Walmart? Because I know you've been having the initiative to move from the end cap to the NIO there. Thank you.

只是想知道您是否可以提供一些額外的評論，也許是關於它的​​進展情況，關於您計劃在沃爾瑪提供的永久貨架空間和 SKU 的更多數據點？因為我知道你們一直在主動從終端轉移到那裡的 NIO。謝謝。

Hi, Aaron. This is Carla. Great to hear from you, and thank you. Yes, we are so pleased with how well the execution came together in this quarter, resulting in strong revenue, record revenue, 10% growth. Walmart plays a very important role in that growth and we are pleased with where we are and our consumption growth at Walmart for this quarter is in the mid-teens at around 16% year over year versus the previous quarter.

嗨，亞倫。這是卡拉。很高興收到你的來信，謝謝你。是的，我們對本季的執行情況非常滿意，帶來了強勁的收入、創紀錄的收入、10% 的成長。沃爾瑪在這一成長中發揮著非常重要的作用，我們對目前的狀況感到滿意，本季沃爾瑪的消費成長處於中位數，與上一季相比，年成長約 16%。

That is as a result of both really excellent performance of the expanded distribution and portfolio that we have at Walmart that we've been building together over time as well as the velocity is really taking hold on the items that have been there.

這是因為我們在沃爾瑪的擴展分銷和產品組合方面表現非常出色，我們長期以來一直在共同建構這些產品，而且速度確實控制了那裡的商品。

As you heard Dave talk about in the recorded remarks, right now we're in the beginnings of an execution of something that is unique to Walmart, which is our celebration of Hispanic Heritage Month, which is a 12-week end cap execution, which will take us through mid-October, and along with that, we are always in conversation with Walmart against the strategy that we articulated in our Investor Presentation around expanding availability.

正如戴夫在錄音中所說的那樣，現在我們正開始執行沃爾瑪獨有的一些措施，即我們慶祝西班牙裔傳統月，這是一項為期 12 週的結束上限執行，它將帶我們度過十月中旬，與此同時，我們始終與沃爾瑪就我們在投資者演示中闡述的有關擴大可用性的策略進行對話。

At Walmart, we really believe we have an ability to expand both some of the items into more doors at Walmart as well as certain new items that are not in Walmart yet.

在沃爾瑪，我們確實相信我們有能力將一些商品擴展到沃爾瑪的更多門市，以及沃爾瑪尚未推出的某些新商品。

A great example that we executed that you can see that was shipped in Q2 is our toddler flushable wipes. That's a great example of how even though we are already in Walmart doors, there is so much more opportunity to drive our distribution based strategy by the types of items that, the quantity of items, and the number of isles that we find ourselves in.

我們執行的一個很好的例子是我們的幼兒可沖式濕紙巾，您可以看到第二季度發貨。這是一個很好的例子，說明儘管我們已經進入沃爾瑪大門，但仍有更多機會透過我們所處的商品類型、商品數量和島嶼數量來推動我們基於分銷的策略。

Great. Really appreciate that color there. Second question for me, just in terms of the EBITDA guidance you provided there. So it implies margins for full year around 4% to 5% range versus, just under 6% in the first half. So some of my softness in the back half. You spoke to increased marketing spend.

偉大的。真的很欣賞那裡的顏色。我的第二個問題，就您在那裡提供的 EBITDA 指導而言。因此，這意味著全年利潤率約為 4% 至 5%，而上半年則略低於 6%。所以我的後半部有些柔軟。您談到了增加行銷支出。

So are we right to think in terms if we think about the gross margin part of it, any implication there in terms of moving gross margin in the back half? Or will the majority of that softness on the EBITDA margin be due to the additional marketing spend? And if you could also provide just in terms of what we can expect to see, where that marketing spend is being targeted to, that'd be helpful as well. Thank you.

那麼，如果我們考慮其中的毛利率部分，那麼我們的思考是否正確，對於下半年毛利率的變化有什麼影響？或者 EBITDA 利潤率的疲軟主要是因為額外的行銷支出嗎？如果您還可以提供我們可以預期看到的內容以及行銷支出的目標，那也會很有幫助。謝謝。

Thank you. Yeah. Hi, Aaron. Dave here. I can help with those questions. We certainly are pleased with how well the organization executed on the transformation pillars driving the strong bottom line results and the progress we made this quarter was a function of certainly revenue growth and the expansion of the margin which contributed to those bottom line results. Expense management was also a key contributor to the bottom line results, seeing some leverage there.

謝謝。是的。嗨，亞倫。戴夫在這裡。我可以幫忙解答這些問題。我們當然對公司在轉型支柱上的執行情況感到滿意，推動了強勁的盈利結果，而我們本季度取得的進展肯定是收入增長和利潤率擴大的結果，而這促成了這些盈利結果。費用管理也是獲利的關鍵因素，在這方面具有一定的槓桿作用。

So as we look to the back part of the year and our guidance of $15 million to $18 million a couple of functions that you can think about in looking at that. First, our gross margin rate of 38% in Q2 is likely a high watermark in the near term.

因此，當我們展望今年下半年以及 1500 萬至 1800 萬美元的指導時，您可以在考慮這一點時考慮一些功能。首先，我們第二季 38% 的毛利率可能是近期的高水位。

We're comfortable within a 36% to 38% still reflecting that upper end potential, but somewhere in the middle there is how we're thinking about gross margin and one of the key factors that we're looking at in gross margin in the back half of the year is preserving some flexibility around trade promotion spend.

我們對 36% 到 38% 的範圍感到滿意，仍然反映了高端潛力，但在中間的某個地方，我們如何考慮毛利率，以及我們在毛利率中考慮的關鍵因素之一今年下半年，貿易促進支出將保持一定的靈活性。

That was one element of particular efficiency in the first half of the year. As we look in the back half, we know that we to maintain flexibility there and drive and have that flexibility on trade promotion dollars similar to what we had last year in the back half of the year. So I'd expect that plays into a bit of the adjusted EBITDA margin rate question you've got.

這是今年上半年特別有效率的因素。當我們回顧下半年時，我們知道我們要保持靈活性，並推動貿易促進資金的靈活性，類似於去年下半年的情況。因此，我預計這會影響您提出的調整後 EBITDA 利潤率問題。

And then on marketing as well, we increased the amount of spend in this second quarter as we kind of indicated we were thinking of doing from our last call and it proved to be a good outcome for us. So we'll see marketing in the back half of the year likely tick up.

然後在行銷方面，我們在第二季度增加了支出，因為我們在上次電話會議中表示我們正在考慮這樣做，事實證明這對我們來說是一個很好的結果。因此，我們將看到今年下半年的行銷活動可能會增加。

If you think about first half marketing as a percent of sales at around 11.5%, we'll likely see that closer up 50 basis points to 100 basis points, so in the back half of the year. So that's another area that we're focused on using as a lever to continue to drive the momentum of the brand, brand awareness and also drive conversion, and it sets us up well as we head into 2025. So those are key aspects of the modeling that hopefully provides some clarity there.

如果您將上半年行銷佔銷售額的百分比想像為 11.5% 左右，我們可能會看到這一比例接近 50 個基點到 100 個基點，因此在下半年也是如此。因此，這是我們重點關注的另一個領域，將其用作繼續推動品牌動力、品牌知名度並推動轉換的槓桿，這為我們進入 2025 年奠定了良好的基礎。因此，這些是建模的關鍵方面，希望能夠提供一些清晰度。

Laura Champine, Loop Capital.

勞拉·尚平 (Laura Champine)，Loop Capital。

Thanks for taking my question. It's a lot about the how. So the tracked channel consumption outperforming the category this much seemed a little counterintuitive given that the macro pressure has caused trade down in a lot of categories. So I wanted to get a better sense of, first of all, just to confirm that baby products and wipes include strong performance for diapers and then to get a sense of how much of this outperformance came from e commerce compared to brick and mortar?

感謝您提出我的問題。關於如何做有很多內容。因此，考慮到宏觀壓力導致許多品類的貿易下降，追蹤的通路消費表現遠遠好於品類似乎有點違反直覺。因此，我想更了解，首先，只是為了確認嬰兒產品和濕紙巾在尿布方面具有強勁的表現，然後了解與實體店相比，這種優異表現有多少來自電子商務？

Hi, Laura. Why don't I give that a start? And, Dave, if I've missed anything, you feel free to layer on for me. Thank you. Good to hear your voice today. Our performance is one of the reasons I feel so pleased with the results is what you're seeing in the 10% growth that we demonstrated in revenue is really quite broad based across the portfolio.

嗨，勞拉。我為什麼不開始呢？而且，戴夫，如果我錯過了什麼，你可以隨時為我補充。謝謝。今天很高興聽到你的聲音。我們的表現是我對結果感到如此滿意的原因之一，你可以看到我們在整個投資組合中所展示的 10% 的收入成長確實非常廣泛。

In the remarks, I know we highlighted the strength of our baby personal care category as well as our wipes category. We still we continue to have a stronger role in the portfolio than has in previous years, and for diapers overall, I would say, we know that the diaper category has, as you said, some macroeconomic dynamics and category dynamics that have it be a rather muted category relative to other categories in our portfolio, but we did hold share and grew 2% in diapers in diaper consumption this quarter.

在評論中，我知道我們強調了嬰兒個人護理類別以及濕紙巾類別的優點。我們仍然在投資組合中繼續發揮比前幾年更強的作用，對於尿布整體而言，我想說，我們知道尿布類別具有一些宏觀經濟動態和類別動態，使其成為相對於我們投資組合中的其他類別，該類別相當低調，但我們確實佔有份額，並且本季度尿布消費量增長了2%。

So we feel that diapers is playing the role as intended in our overall plan and is reflected as we look at the numbers that Dave talked to you about for the remainder of the year at about that 7% growth rate.

因此，我們認為尿布正在發揮我們總體計劃中預期的作用，並且當我們查看 Dave 與您談論的今年剩餘時間內的數字（大約 7% 的增長率）時就可以反映出這一點。

Got it. And anything on the channel mix that's notable e commerce versus brick and mortar?

知道了。與實體店相比，通路組合中有哪些值得注意的電子商務？

Yeah. Hi, Laura. Our channel mix continues to be balanced with digital being largely through Amazon. That continues to be our primary digital channel for us. Consumption in the quarter was up high teens, which we're happy with and as we prepared ourselves for Amazon Prime Day, there were some nice shipments out of the quarter to support that event with the two-day event actually seeing some unit volume growth of little over 30%. So we're pleased with that digital growth and finding it to be the right balance for us and we expect that going forward.

是的。嗨，勞拉。我們的通路組合持續保持平衡，數位化主要透過亞馬遜實現。這仍然是我們的主要數位管道。本季度的消費量增長了十幾歲，我們對此感到滿意，並且當我們為亞馬遜Prime Day 做準備時，本季度有一些不錯的發貨量來支持該活動，為期兩天的活動實際上看到了一些單位銷售量的成長略高於30%。因此，我們對數位成長感到滿意，並發現它對我們來說是正確的平衡，我們預計未來會如此。

If you'll allow me just one more, just given that what you just disclosed, how do you drive growth like that? Is that just staying in stock? Was the product much better? Like why would you be able to service 30% unit growth on Prime Days?

如果您允許我再說一遍，鑑於您剛剛披露的內容，您如何推動這樣的成長？難道只是留存貨嗎？產品好很多了嗎？例如為什麼您能夠在 Prime Days 實現 30% 的銷售成長？

Thank you. Laura, you know I would love to answer an Amazon question. Overall, what I think you are seeing works so well in our execution is how our transformation pillars are all coming together as a collective to deliver the strategy that we really have always had envisioned.

謝謝。勞拉，你知道我很樂意回答亞馬遜的問題。總的來說，我認為您在我們的執行中看到的效果如此之好，是我們的轉型支柱如何作為一個集體聚集在一起，以實現我們一直以來真正設想的策略。

What is helping our Amazon growth is, first of all, our products are very well-suited and aligned for the broad base of Amazon shoppers. The Honest brand has been one that has performed well at Amazon for a long time, continues to do so because what we have is what consumers are looking for. That's why we grew 18% in consumption at Amazon in the quarter.

幫助我們亞馬遜成長的首先是，我們的產品非常適合併符合廣大的亞馬遜購物者群體。Honest 品牌長期以來一直在亞馬遜表現出色，並將繼續保持這種良好勢頭，因為我們擁有的正是消費者所尋找的。這就是為什麼本季我們在亞馬遜的消費成長了 18%。

It is also very important to have an effective supply chain strategy with Amazon in advance of something big like Prime Day or holiday. Our teams work very well in alignment with their supply chain teams to make sure we are prepared with shipments in advance of the execution because you do need to have shipments in order to make sure that you continue to perform well on page searches and on page views.

在會員日或假期等重大活動之前，與亞馬遜制定有效的供應鏈策略也非常重要。我們的團隊與他們的供應鏈團隊合作得非常好，以確保我們在執行之前準備好發貨，因為您確實需要發貨才能確保您在頁面搜尋和頁面瀏覽量上繼續表現良好。

We also continue to make sure we bring our new products forward on Amazon. So we know that Amazon has that infinite shelf, has doesn't have the same physical limitations as the other retailers of brick and mortar, but Amazon, it's just as exciting when we bring something like our milk carton style gable top refills, those 32 ounce refills, when we launch those and are able to bring them to life both on Amazon and brick and mortar, that kind of new product introduction also drives growth rate for us in the e commerce channel.

我們也繼續確保在亞馬遜上推出我們的新產品。所以我們知道亞馬遜有無限的貨架，沒有與其他實體零售商相同的物理限制，但是亞馬遜，當我們帶來像我們的牛奶盒式山形頂補充裝這樣的東西時，這同樣令人興奮，那些 32盎司補充裝，當我們推出這些補充裝並能夠在亞馬遜和實體店上將它們變為現實時，這種新產品的推出也推動了我們在電子商務通路的成長率。

Owen Rickert, Northland Securities.

歐文‧里克特，北國證券。

Hi, Carla. Hi, Dave. Congrats on the stellar quarter there. I just have a quick question in terms of subscriptions. Is there anything to call out there? Subscriptions continuing to become a bigger part of the picture and are they growing in some of the other segments maybe besides diapers and wipes? Thank you.

嗨，卡拉。嗨，戴夫。恭喜那裡的出色季度。我只是有一個關於訂閱的簡單問題。那裡有什麼好喊的嗎？訂閱繼續成為整個市場的重要組成部分，除了尿布和濕紙巾之外，訂閱是否在其他一些領域也在成長？謝謝。

Oh, it's so great to hear from you. This is Carla. I'm also going to introduce that with us on the call is our Chief Growth Officer, Kate Barton. Kate manages all the portfolios individually. I will just start this to say, I love that you asked that question. I don't know if you know, but I used to work at Amazon running these categories and so when we think of subscription here at Honest, we know that while Honest was a pioneer in the subscription business through our own honest.com channel, we also have a very strong Amazon subscribe and save subscription business.

哦，很高興收到你的來信。這是卡拉。我還要介紹一下，與我們一起參加電話會議的還有我們的首席成長官凱特·巴頓 (Kate Barton)。凱特單獨管理所有投資組合。我首先要說的是，我喜歡你問這個問題。我不知道你是否知道，但我曾經在亞馬遜工作，負責管理這些類別，所以當我們想到 Honest 的訂閱時，我們知道，雖然 Honest 是透過我們自己的Honest.com 管道進行訂閱業務的先驅，我們還有非常強大的亞馬遜訂閱和保存訂閱業務。

That's not something we break out separately in our numbers. I don't know if Kate wants to build any nuance to that of how we're working with Amazon, but subscription is very important to the way a digital shopper shops today and we're in a great position there.

這不是我們在數據中單獨列出的內容。我不知道凱特是否想在我們與亞馬遜的合作方式上建立任何細微差別，但訂閱對於當今數位購物者的購物方式非常重要，我們在這方面處於有利地位。

Hi. It's nice to meet you. As Carla said, I'm Kate Barton, Chief Growth Officer. To answer your question, our subscription model business on our own honest.com site, continues to be a robust part of that business. It's a diapers and wipes subscription which conveniently packages them together, and it will continue to be, ongoing a part of our honest.com strategy for the rest of the year.

你好。很高興認識你。正如卡拉所說，我是首席成長長凱特巴頓。為了回答您的問題，我們在自己的Honest.com 網站上的訂閱模式業務仍然是該業務的重要組成部分。這是一個尿布和濕巾訂閱服務，可以方便地將它們打包在一起，並且它將繼續成為我們今年剩餘時間誠實.com 戰略的一部分。

All of our sales on honest.com are subscription. We actually have our whole portfolio on honest.com where you can buy our adult skincare products as well as some of our, baby personal care and so what we try to do is keep it, consumer first, and ensure that the options that we see consumers asking for are available.

我們在Honest.com 上的所有銷售均為訂閱。實際上，我們在Honest.com上擁有我們的整個產品組合，您可以在那裡購買我們的成人護膚產品以及我們的一些嬰兒個人護理產品，因此我們盡力做的是保留它，消費者至上，並確保我們看到的選擇消費者要求的都可以提供。

Great. Thank you. Very, very helpful. And then quickly as a follow-up, obviously some increased marketing spend this quarter and going forward, but in terms of that marketing strategy, what channels are succeeding? And is there anything to call out maybe for the remainder of the year in terms of that marketing strategy?

偉大的。謝謝。非常非常有幫助。然後很快就作為後續行動，顯然本季和未來的行銷支出有所增加，但就行銷策略而言，哪些管道取得了成功？就行銷策略而言，今年剩餘時間有什麼值得關注的嗎？

Wonderful. I'll take that one as well. In our investor presentation, we actually showcased some of the improvements that we've made in our marketing model and some of the improved ads that we've had quarter over quarter. We have an incredible team that works cohesively across, paid, owned, and earned to have a full funnel modern approach.

精彩的。我也拿那個。在我們的投資者演示中，我們實際上展示了我們在行銷模式中所做的一些改進以及我們每個季度改進的廣告。我們擁有一支令人難以置信的團隊，他們團結一致地工作，付出代價，擁有並贏得了擁有完整管道的現代方法。

We are a company of innovators, and we will continue to innovate and stay modern as the marketing landscape evolves, but we are very pleased with the results that we're seeing in our consumption and how consumer to inform messaging as we feature our hero products and really feature what's unique and special about the Honest brand. We're excited about our Q3 campaign that's launching right now and so, we just continue to use that as a lever for growth as we're finding it to be very effective and efficient.

我們是一家創新者公司，隨著行銷環境的發展，我們將繼續創新並保持現代化，但我們對我們在消費中看到的結果以及消費者在我們展示我們的英雄產品時如何告知消息感到非常滿意真正體現了Honest 品牌的獨特之處。我們對現在啟動的第三季活動感到興奮，因此，我們繼續使用它作為成長的槓桿，因為我們發現它非常有效和有效率。

Eric Serotta, Morgan Stanley.

艾瑞克‧塞羅塔，摩根士丹利。

Hi. Good afternoon, everyone, and, congratulations on a great quarter. Carla, as you were approaching, I think it's a year and a half on the job, significant progress on the turnaround, particularly over the last several quarters, but, clearly, it didn't happen overnight.

你好。大家下午好，恭喜這個季度的出色表現。卡拉，正如您所說，我認為工作已經一年半了，在扭虧為盈方面取得了重大進展，特別是在過去的幾個季度，但顯然，這不是一朝一夕發生的。

As you look ahead, how do you think about sort of what the next phase, for Honest is going to be? And then a little bit more concretely, how are you thinking about driving household penetration in your existing categories? Clearly, you've made a lot of progress, but there's a lot of white space ahead. Thank you.

展望未來，您如何看待 Honest 的下一階段將會是什麼？然後再具體一點，您如何考慮推動現有類別的家庭滲透率？顯然，您已經取得了很大進展，但前方還有很多空白。謝謝。

Eric, hi. It's great to hear your voice. Thank you for celebrating that year-and-a-half milestone. What I will say is results like this are a team sport, absolutely and the first thing that I look to as I look out ahead, it's really is grounded in, that concept we've talked about a few times previously, which is this operating discipline mindset that our third transformation pillar brings to life. Internally, we call that our people mindset. So we expect ourselves to operate focused, executional excellent, staffed, and aligned.

埃里克，嗨。很高興聽到你的聲音。感謝您慶祝這一年半的里程碑。我要說的是，這樣的結果絕對是一項團隊運動，也是我展望未來時首先關注的事情，它確實是基於我們之前多次討論過的概念，這就是這個操作我們的第三個轉型支柱帶來的紀律心態。在內部，我們稱之為「以人為本」。因此，我們希望自己能夠專注於營運、執行力優異、人員配備齊全且協調一致。

So we've articulated a strategy that will serve us in an evergreen way for a long time to come that's based on availability of our strong hero portfolio and continuing to build out the items in our strong hero portfolio, but I'll say that the availability, it's still early days for us.

因此，我們制定了一項策略，該策略將在未來很長一段時間內以常青的方式為我們服務，該策略基於我們強大的英雄組合的可用性，並繼續在我們強大的英雄組合中建立項目，但我會說可用性，對我們來說還為時過早。

So when we think at the item level even some of our top performing items, I'll use our Lavender Bubble Bath as a great example. While you will see in some of our presentation materials that as an enterprise, we have 85% ACV availability, that's looking at the entire portfolio of the collection. Any individual item though is rarely at that high level.

因此，當我們在產品層面考慮甚至是一些表現最好的產品時，我將使用我們的薰衣草泡泡浴作為一個很好的例子。雖然您會在我們的一些演示材料中看到，作為一家企業，我們擁有 85% 的 ACV 可用性，這是針對該系列的整個產品組合。但任何單獨的項目很少達到那麼高的水平。

Our Lavender Bubble Bath is a great example, just a classic popular SKU that really appeals to our core demographic is only available in 35% of retailers right now and that's a SKU we know, we love it, it works. We've introduced the gable top refill.

我們的薰衣草泡泡浴就是一個很好的例子，它是一個真正吸引我們核心人群的經典流行 SKU，目前只有 35% 的零售商有售，這是我們知道、我們喜歡它、它有效的 SKU。我們推出了山牆頂補充裝。

That's how confident we are in where we have to go and I would say that while you say the next phase, I would say we're really only just recently introduced you to the phase we are in and the phase is working and we've got a lot of opportunity in order to deliver it by expanding into new retail accounts, by expanding into aisles that we are not in.

這就是我們對我們必須去的地方的信心，我想說，當你說下一階段時，我想說的是，我們實際上只是最近才向你介紹我們所處的階段，並且該階段正在發揮作用，我們已經透過擴展到新的零售客戶、擴展到我們不涉足的管道，我們有很多機會來實現這一目標。

I always like to give as an example because I think those of us that shop at some of these big boxes really seen a lot of places, but there are a lot of places we aren't yet. For example, the Dollar Channel is a really important high growth channel. Honest does not have a presence there to the degree we can.

我總是喜歡舉一個例子，因為我認為我們這些在一些大盒子裡購物的人確實見過很多地方，但也有很多地方我們還沒去過。例如，美元通道是一個非常重要的高成長通道。誠實並沒有達到我們所能達到的程度。

So we see lots of opportunities in that way. We are also innovating in new need states. Our toddler flushable wipes are a great example of something that we know the potty training families need and want and so we just recently shipped and introduced that last quarter.

所以我們以這種方式看到了很多機會。我們也正在新的需求狀態下進行創新。我們的幼兒可沖式濕紙巾是一個很好的例子，我們知道如廁訓練家庭需要和想要的東西，所以我們最近剛發貨並在上個季度推出了它。

There is so much more opportunity for us to expand heroes and the format, options and locations where you can buy them. So that's what I think you will continue to hear us talk about and every quarter, there's so much opportunity for us to reflect how those great partnerships are working with our retailers.

我們有更多的機會來擴展英雄以及購買它們的格式、選項和地點。因此，我認為您將繼續聽到我們談論這一點，每個季度，我們都有很多機會來反映這些偉大的合作夥伴關係如何與我們的零售商合作。

Great. And then a little bit shorter term, I know you called out sort of macro and category dynamics in diapers. As you look across the rest of your key categories, are you seeing any macro impact yet from changing consumer demand trends? And are you seeing any changes in retailer support for the clean or natural segment given the macro situation?

偉大的。然後從更短期的角度來看，我知道您提到了尿布中的宏觀和類別動態。當您審視其餘的關鍵類別時，您是否看到了消費者需求趨勢變化帶來的宏觀影響？鑑於宏觀形勢，您是否看到零售商對清潔或天然細分市場的支持有任何變化？

Hi, Kate Barton here. I'll take that one. I will say first and foremost that our results of 10% growth in the quarter really articulate and represent the strength of the Honest brand. And within that growth, we see our competitive set not just in the natural category, but also within conventional.

嗨，凱特·巴頓在這裡。我會接受那個。我首先要說的是，我們本季 10% 的成長表現確實闡明並代表了 Honest 品牌的實力。在這種成長中，我們看到我們的競爭環境不僅在自然領域，而且在傳統領域。

We are actually now the number one baby personal care brand in Target, and that is over all segments of baby personal care, and so as we think about the consumer demand behind our products, I think that represents the relevance of the brand and the relevance of sensitive skin and clean options and that's something that we don't think will go away over time and even in the macroeconomic times that we find ourselves, we still see that to be a very relevant consumer need that we are meeting.

事實上，我們現在是Target 排名第一的嬰兒個人護理品牌，涵蓋嬰兒個人護理的所有細分市場，因此，當我們考慮我們產品背後的消費者需求時，我認為這代表了品牌的相關性和相關性我們認為，敏感肌膚和清潔選擇的需求不會隨著時間的推移而消失，即使在我們所處的宏觀經濟時代，我們仍然認為這是我們正在滿足的非常相關的消費者需求。

So we are absolutely watching the macroeconomic environment and that is factored into our guidance for the year to go, but we also are very confident in our brand positioning, and the part that makes our brand and our products different and special.

因此，我們絕對在關注宏觀經濟環境，這已納入我們未來一年的指導中，但我們對我們的品牌定位以及使我們的品牌和產品與眾不同和特別的部分也非常有信心。

(Operator Instructions)

（操作員說明）

(inaudible), JMP.

（聽不清楚），JMP。

Hi. Thanks for taking our questions and congrats on a stellar quarter. Most companies that reported this season thus far commented on a more stressed consumer trade down dynamics and a pickup in promotions.

你好。感謝您回答我們的問題，並祝賀您度過了一個出色的季度。迄今為止，大多數發布本季報告的公司都表示，消費者貿易壓力加大，促銷力道加大。

You did comment that you are going to be ramping up your marketing spend in the second half, but wanted to get a better sense of how much of it would be trade promotions versus marketing to bring about awareness and conversion? And also if you could give us a little bit more color on the trade down aspects you're seeing in our categories? And I have another follow-up question as well. Thanks.

您確實說過，您將在下半年增加行銷支出，但想更了解其中有多少是透過貿易促銷與行銷來提高認知度和轉換率的？另外，您是否可以給我們更多關於您在我們的類別中看到的降價方面的資訊？我還有另一個後續問題。謝謝。

(inaudible) nice to hear your voice. I think Dave and I should probably split this one, some of the questions about where the investments will go and how we've seen the efficiency work Dave will handle. Trade down is an interesting one.

（聽不清楚）很高興聽到你的聲音。我認為戴夫和我應該分開解決這個問題，一些關於投資將流向何處以及我們如何看待戴夫將處理的效率工作的問題。降價交易是一件有趣的事。

As you look at our first half growth, our revenue of 7% overall for the first half, really with a cap stone of our record revenue of $93 million in Q2. What we've seen thus far is that the quality of the products we deliver and the consumer needs is not only matched, but is growing, and so as we think about making sure that we make what Honest brings to bear more available, we have confidence that we have still not yet brought the Honest portfolio to its full scale of really being available in all of the places and all of the formats that consumers are looking for in clean and sustainably designed products that we have.

從我們上半年的成長來看，我們上半年的整體營收成長了 7%，第二季的營收達到創紀錄的 9,300 萬美元。到目前為止，我們所看到的是，我們提供的產品品質與消費者的需求不僅相匹配，而且還在不斷提高，因此，當我們考慮確保我們讓 Honest 帶來的東西更加可用時，我們我們相信，我們尚未將Honest 產品組合全面發揮出來，真正以消費者在我們擁有的清潔和可持續設計產品中尋找的所有地方和所有格式提供。

Some of those trade down dynamics, we do need to keep our eye on and that is as Dave and Kate have said, it is reflected in our model that we understand that we always have to be aware of what's going on with consumers.

我們確實需要密切關注其中的一些貿易動態，正如戴夫和凱特所說，我們的模型反映了我們始終必須了解消費者的情況。

We see more of that trade down behavior happening from conventional products down to the lower value price products in the category rather than trading down from our products all the way to those value priced categories.

我們看到更多的降價行為是從傳統產品降價到該類別中價值較低的產品，而不是從我們的產品一直降價到那些價值價格類別。

But we do think that the role of larger sizes plays a very important role in consumers getting the value that they need, which is why we are very pleased that a lot of the growth that we are delivering is demonstrating that if we can provide our hero products in larger and more value sized options, that's another great way for people to get into the Honest Collection. Dave, maybe you want to answer about some of the trade specific questions?

但我們確實認為，大尺寸在消費者獲得他們需要的價值方面發揮著非常重要的作用，這就是為什麼我們非常高興我們所實現的大量增長表明，如果我們能夠提供我們的英雄更大、更有價值的產品選擇，這是人們進入誠實系列的另一個好方法。戴夫，也許您想回答一些特定於交易的問題？

Yeah, absolutely. I think first of all, we can say we're pleased with how we deployed the investments in the second quarter driving the $93 million in revenue growth. So it was a balanced approach in this period that we want to apply in the back half of the year.

是的，絕對是。我認為首先，我們可以說，我們對第二季投資的部署方式推動了 9,300 萬美元的收入成長感到滿意。因此，我們希望在今年下半年採用這段時期的平衡方法。

I would expect that trade promotion dollars are flexible to increase anywhere from 15% to 20% in the back half of the year relative to the first half and that's going to be really targeted by the customer, the retail customer and the product category that we want to gain some momentum in. So those are very strategic in how they come about and our sales team having that kind of flexibility and ammunition to drive velocities through trade promotions is a critical element to that.

我預計下半年的貿易促銷費用相對於上半年會靈活增加 15% 到 20%，這將真正針對客戶、零售客戶和我們的產品類別。因此，這些都是非常具有戰略意義的，我們的銷售團隊擁有這種靈活性和彈藥來透過貿易促銷來推動速度，這是實現這一目標的關鍵因素。

Marketing, I also mentioned the increase that we've got available to us to do there. That will be a balance across brand awareness investments to make sure that the Honest brand continues to be relevant in all media channels, social media channels and we're seeing as Kate mentioned great results from the traction that those brand awareness investments make, but also specific to retail marketing.

行銷方面，我還提到了我們可以在那裡做的增加。這將是品牌知名度投資之間的平衡，以確保誠實品牌繼續在所有媒體管道、社交媒體管道中保持相關性，正如凱特所提到的那樣，這些品牌知名度投資所產生的吸引力取得了巨大的成果，但也具體到零售行銷。

So working with our retail customers on the marketing within the store and on their digital presence to drive customers into the stores. So it will be very much of a balanced approach, but the good thing is we've got the ammunition to apply for that back half of the year and we'll be strategic in how we invest it.

因此，與我們的零售客戶合作進行店內行銷和數位化展示，以吸引客戶進入商店。因此，這將是一種非常平衡的方法，但好處是我們已經有足夠的彈藥來申請下半年，我們將在投資方式上採取策略性措施。

Thanks for the color. And I think you mentioned that you got space additional space in Walmart. Can you give us a sense of how much more what it was before and what you've been awarded there? Thanks.

謝謝你的顏色。我想你提到你在沃爾瑪有額外的空間。您能否讓我們了解一下以前的情況以及您在那裡獲得的獎勵？謝謝。

We don't comment retailer by retailer on space gains, but what I can tell you is that in Q2, our distribution grew 5% across the board in our tracked channels. So that distribution expansion is through again a number of approaches we take whether that is distribution gains by gaining new stores in retailers, introducing new items into those retailers or even sometimes just expanding the hero portfolio, so that there are multiple sizes and offerings in a given hero collection.

我們不會對每個零售商的空間收益進行評論，但我可以告訴您的是，在第二季度，我們的分銷在我們追蹤的管道中全面增長了 5%。因此，分銷擴張是透過我們採取的多種方法來實現的，無論是透過在零售商中獲得新商店、向這些零售商引入新產品，甚至有時只是擴大英雄產品組合來獲得分銷收益，以便在一個產品中提供多種尺寸和產品。

Thank you. One last question, if I may. You called out pressures in the diaper category and I wanted to get a sense of like if you could give us more color and track channels show like significant market share gains for brands like Millie Moon and Rascal & Friends. Can you please comment on some of the dynamics you're seeing in this category? And what you are doing to overcome the pressure? Thanks.

謝謝。最後一個問題，如果可以的話。您指出了尿布類別的壓力，如果您能為我們提供更多色彩並追蹤頻道節目，例如 Millie Moon 和 Rascal & Friends 等品牌的市場份額大幅增長，我希望得到一種感覺。您能否評論一下您在該類別中看到的一些動態？你正在做什麼來克服壓力？謝謝。

Thank you for the question. The diaper category is one we are all watching very closely. It is one that has a slower total growth as a category overall, and we are absolutely watching the competitive activity across innovation, trade, and new entrants.

謝謝你的提問。尿布類別是我們都非常密切關注的類別。作為一個整體類別，它的整體成長速度較慢，我們絕對會專注於創新、貿易和新進入者方面的競爭活動。

I won't comment on any competitor in particular, but I will say that, our diapers grew, as Carla mentioned earlier, 2% in net revenue in the quarter, and was a contributor to the growth, but it is one that we are cautious on going forward watching very closely.

我不會特別評論任何競爭對手，但我要說的是，正如卡拉之前提到的，我們的尿布增長了，本季度淨收入增長了2%，並且是增長的貢獻者，但這是我們的增長之一謹慎地繼續密切關注。

I'm very proud of our team and how they're executing and I believe we have the right strategy within the diaper category to continue to hold and grow share, but all of that is reflected again in our guidance for a year to go.

我對我們的團隊以及他們的執行方式感到非常自豪，我相信我們在尿布類別中擁有正確的策略來繼續保持和增長份額，但所有這些都再次反映在我們未來一年的指導中。

At this time, I would like to turn the conference back over to Carla Vernon for closing remarks.

此時，我想將會議轉回卡拉·弗農（Carla Vernon）進行閉幕致詞。

Thank you so much to everyone who joined us today for the call. We really appreciate that and we look forward to joining you in next quarter with updated results.

非常感謝今天參加我們電話會議的所有人。我們對此深表謝意，並期待在下個季度與您分享最新結果。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。