Kontoor Brands Inc (KTB) 2024 Q2 法說會逐字稿

Greetings and welcome to the Kontoor Brands second-quarter 2024 earnings conference call. (Operator instructions) As a reminder, this conference is being recorded.

歡迎參加 Kontoor Brands 2024 年第二季財報電話會議。（操作員說明） 請注意，本次會議正在錄製中。

It is now my pleasure to introduce your host, Michael Karapetian, Vice President, Corporate Development, Enterprise Strategy and Investor Relations. Thank you. You may begin.

現在我很高興向大家介紹主持人麥可‧卡拉佩蒂安 (Michael Karapetian)，他是負責企業發展、企業策略和投資者關係的副總裁。謝謝。你可以開始了。

Thank you, operator, and welcome to Kontoor Brands second-quarter 2024 earnings conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to materially differ. These uncertainties are detailed in documents filed with the SEC.

謝謝業者，歡迎參加 Kontoor Brands 2024 年第二季財報電話會議。今天電話會議的參與者將發表前瞻性聲明。這些陳述是基於目前的預期，並受到可能導致實際結果存在重大差異的不確定性的影響。這些不確定性在向 SEC 提交的文件中有詳細說明。

We urge you to read our risk factors, cautionary language and other disclosures contained in those reports. Amounts referred to on today's call will be in constant currency unless otherwise noted, and often on an adjusted dollar basis, which we clearly defined in the news release that was issued earlier this morning.

我們敦促您閱讀這些報告中包含的風險因素、警告性語言和其他揭露內容。除非另有說明，今天電話會議中提到的金額將以固定匯率計算，並且通常以調整後的美元為基礎，我們在今天早上早些時候發布的新聞稿中明確定義了這一點。

Our outlook is presented on an adjusted dollar basis. Reconciliations of GAAP measures to adjusted amounts can be found in the supplemental financial tables included in today's news release, which is available on our website at kontoorbrands.com. These tables identify and quantify excluded items and provide management's view of why this information is useful to investors.

我們的展望是在調整後的美元基礎上提出的。GAAP 衡量指標與調整後金額的對帳可在今天新聞稿中包含的補充財務表格中找到，該表格可在我們的網站 kontoorbrands.com 上找到。這些表格確定並量化了排除的項目，並提供了管理層對為什麼這些資訊對投資者有用的看法。

Joining me on today's call are Kontoor Brands, President, Chief Executive Officer, and chair, Scott Baxter; and Chief Financial Officer, Joe Alkire. Following our prepared remarks, we will open the call for questions. We anticipate this call will last about one hour. Scott?

參加今天電話會議的還有 Kontoor Brands 總裁、執行長兼董事長 Scott Baxter；和財務長喬·阿爾基爾。在我們準備好的發言之後，我們將開始提問。我們預計這次通話將持續約一小時。史考特？

Thanks, Mike, and thank you to everybody joining us on today's call. I'm pleased to share that we delivered second quarter results above our expectations. Our results were driven by continued market share gains, gross margin expansion and strong earnings growth in cash generation. In what remains an uncertain environment, the consistency of our execution and power of our model is driving competitive separation and improving fundamentals.

謝謝麥克，也謝謝參加今天電話會議的所有人。我很高興地告訴大家，我們第二季的業績超出了我們的預期。我們的業績是由持續的市場份額成長、毛利率擴張和現金產生的強勁獲利成長所推動的。在仍然充滿不確定性的環境中，我們的執行力和模型力量的一致性正在推動競爭分離並改善基本面。

We are entering the second half of the year with great momentum. Our brands are winning with the consumer and we expect revenue growth to accelerate for both brands through the balance of the year. Based on our improving visibility and stronger profit outlook, we are raising our full year gross margin earnings and cash flow guidance, including incremental investments we are making in both brands. Midway through the year, we have executed our plan well, and I am confident our best is still ahead of us.

我們正以強勁的勢頭進入下半年。我們的品牌正在贏得消費者的青睞，我們預計這兩個品牌的收入成長將在今年餘下時間加速。基於我們不斷提高的知名度和更強的利潤前景，我們正在提高全年毛利率收益和現金流指導，包括我們對兩個品牌的增量投資。今年年中，我們很好地執行了我們的計劃，我相信我們的最佳表現仍在前方。

With that, let me review highlights from the quarter. Wrangler revenue grew 1% with growth in nearly every channel and region, fueled by continued share gains and expansion into new categories. In our core bottoms and shorts business, we gained nearly 100 basis points of market share in the US according to Cicarna, and our non-denim business, which includes outdoor and tees grew 14% in the quarter. This broad strength demonstrates the power of the brand and the momentum we are carrying into the second half of the year.

接下來，讓我回顧一下本季的亮點。在持續的份額成長和新類別擴張的推動下，牧馬人收入成長了 1%，幾乎所有管道和地區都有成長。根據Cicarna 的數據，在我們的核心下裝和短褲業務中，我們在美國的市場份額增加了近100 個基點，而我們的非牛仔布業務（包括戶外和T 卹）在本季度增長了14% 。這種廣泛的實力展示了品牌的力量以及我們下半年的勢頭。

POS trends in the US also accelerated through the second quarter, increasing 4% in June, our strongest month year-to-date. Behind this strength is a combination of product and demand creation platforms that are resonating with consumers like never before. Starting with outdoor, which grew 25% in the quarter, we are bringing great product in value to the market and the consumer is responding.

美國的 POS 趨勢在第二季也加速成長，6 月成長了 4%，是今年迄今為止最強勁的月份。這種優勢的背後是產品和需求創造平台的結合，它們以前所未有的方式與消費者產生共鳴。從本季成長 25% 的戶外產品開始，我們為市場帶來了高價值的產品，消費者也做出了回應。

As an example, our utility pant grew triple digits in the quarter and we saw similar strength in shorts. Our investment in talent, design and product development are advancing our penetration in this large and growing category, and we have visibility to this momentum continuing supported by new launches this fall, such as the ATG Chino in Cliffside utility pants. We believe we are just getting started and have a long runway for outsized growth, including double digit increases this year.

舉例來說，我們的實用褲在本季成長了三位數，我們在短褲中也看到了類似的優勢。我們在人才、設計和產品開發方面的投資正在推動我們在這個龐大且不斷增長的類別中的滲透，我們看到今年秋季新推出的產品（例如Cliffside 工裝褲中的ATG Chino）將繼續支持這一勢頭。我們相信，我們才剛開始，並有很長的路要實現超額成長，包括今年的兩位數成長。

In our Western business, US revenue grew 8%. Wrangler is rooted in western culture, which has been part of its DNA since its founding in 1947. Our collaborations with artists such as Lainey Wilson and Cody Johnson are bringing a new generation of consumers into the brand, and George Strait, who we've collaborated with since 2003 recently set a record for the largest ticketed event in US history and most recently, we partnered with the summer blockbuster, Twisters, showcasing Wrangler, deep connection to America's Heartland.

在我們的西方業務中，美國收入成長了 8%。Wrangler 植根於西方文化，自 1947 年成立以來，這已成為其 DNA 的一部分。我們與萊尼·威爾遜(Lainey Wilson) 和科迪·約翰遜(Cody Johnson) 等藝術家的合作正在為該品牌帶來新一代消費者，而我們自2003 年以來一直合作的喬治·斯特雷特( George Strait) 最近創下了美國歷史上規模最大的售票活動的記錄，最近，我們與夏季大片《Twisters》合作，展示了牧馬人與美國中心地帶的深厚聯繫。

We get asked if Western travels around the world and the answer is a clear, yes. In Europe, we are seeing similar strength with the consumer across Western bottoms and tops, which is attracting a younger and more female consumer into the brand.

有人問我們西部片是否環遊世界，答案很明確，是的。在歐洲，我們看到西方下裝和上裝的消費者俱有類似的優勢，這吸引了更年輕、更多的女性消費者進入該品牌。

Looking at the balance of the year, our pipeline is the strongest we've had. The Lainey Wilson collection is on track to be our largest collaboration to date. The market response to bespoke, our new female fit innovation has been fantastic. We enter our second year with the Dallas Cowboys and we are planning our first equity campaign in years across broadcast TV and live sports.

看看今年的餘額，我們的管道是我們擁有的最強大的。Lainey Wilson 系列有望成為我們迄今為止最大的合作系列。我們新的女性合身創新客製化產品的市場反應非常好。我們進入達拉斯牛仔隊的第二年，我們正在計劃多年來在廣播電視和體育直播方面的首次股權活動。

The early reads on the campaign have been incredibly strong and we can't wait for its public debut in September. Taking together, we expect second half revenue for the brand to accelerate to low to mid single digit growth.

對該活動的早期解讀非常強烈，我們迫不及待地想看到它在 9 月的公開亮相。綜上所述，我們預期該品牌下半年營收將加速至中低個位數成長。

Turning to Lee, as expected, revenue in the quarter decreased 6%, reflecting sequential improvement, a decline in US wholesale and macro pressures in Europe and Asia more than offset global growth in digital. That said, the reported figures don't tell the full story. So let me share details on what's behind the numbers.

至於 Lee，正如預期的那樣，本季營收下降了 6%，反映出環比的改善，美國批發業的下降以及歐洲和亞洲的宏觀壓力抵消了全球數位成長的影響。也就是說，報告的數據並不能說明全部。讓我分享一下這些數字背後的細節。

First, we saw encouraging signs as the quarter progressed, including US POS accelerating to 6% growth in June. This was the strongest POS performance all year. In addition, our core bottoms and shorts business gained approximately 20 basis points of market share in the US. Conservative retailer inventory management and the slow start to seasonal negatively impacted sell-in. But the momentum we are seeing with sell through gives us confidence the brand is resonating with consumers.

首先，隨著本季的進展，我們看到了令人鼓舞的跡象，包括 6 月美國 POS 增速加快至 6%。這是全年最強勁的 POS 表現。此外，我們的核心下裝和短褲業務在美國的市佔率增加了約 20 個基點。保守的零售商庫存管理和季節性的緩慢開始對銷售產生了負面影響。但我們看到的銷售勢頭讓我們相信該品牌正在與消費者產生共鳴。

Our consumer insights work is also advancing our end-to-end brand assessment in refreshed segmentation. In particular, we are seeing green shoots with younger and female consumers. In Gen Z, Lee female saw a 42% increase in perceived brand equity and a 36% increase in purchase consideration over the last 12 months.

我們的消費者洞察工作也在更新細分領域推進我們的端到端品牌評估。特別是，我們看到了年輕和女性消費者的萌芽。在 Z 世代中，李族女性的感知品牌資產在過去 12 個月中增加了 42%，購買考慮度增加了 36%。

As we discussed last quarter, this is a significant focus for the second half of the year and we are confident the work will pay dividends in the coming years. We know we need to capitalize on the opportunity to improve Lee's top line performance. The foundational work on consumer insights, segmentation, product development and demand creation gives us confidence we are on the right path. And over the near-term, we have several initiatives that support the second half acceleration.

正如我們上季度討論的那樣，這是下半年的一個重要焦點，我們相信這項工作將在未來幾年帶來回報。我們知道我們需要利用這個機會來提升 Lee 的營收績效。在消費者洞察、細分、產品開發和需求創造方面的基礎工作讓我們有信心走在正確的道路上。短期內，我們有多項措施支持下半年加速。

In June, we launched the exciting collaboration with HEYDUDE across both apparel and footwear and just yesterday, we followed up with the Lee Forever 21 collaboration, tying into the consumer work I just shared. These collaborations speak to the younger consumer that is seeking the brand while expanding Lee into new categories. And our biggest platform of the year, Lee X, is on track for its global launch. This performance innovation combines elite comfort with world-class aesthetic at incredible value.

6 月份，我們與 HEYDUDE 推出了令人興奮的服裝和鞋類合作，就在昨天，我們又推出了 Lee Forever 21 合作，與我剛剛分享的消費者工作相結合。這些合作迎合了尋求該品牌的年輕消費者，同時將 Lee 擴展到新的類別。我們今年最大的平台 Lee X 即將在全球推出。這項性能創新將卓越的舒適性與世界一流的美學結合在一起，具有令人難以置信的價值。

It is launching as a true platform at wholesale and D2C and will include bottoms, tops and non-denim. It will launch later this year and scale in '25. And we are excited to share an upcoming collaboration with legendary designer, Paul Smith.

它作為一個真正的批發和 D2C 平台推出，將包括下裝、上裝和非牛仔布。它將於今年稍後推出，並在 25 年擴大規模。我們很高興與傳奇設計師 Paul Smith 分享即將到來的合作。

He has worked with some of the world's most iconic brands and speaks to the rich heritage Lee has around the globe. This will launch as a premium collection in spring '25. Supporting these initiatives, we will be making incremental demand creation investments in the second half of the year, which has been incorporated into our raised earnings guidance.

他曾與一些世界上最具標誌性的品牌合作過，並講述了李在全球擁有的豐富遺產。該系列將於 25 年春季作為高級系列推出。為了支持這些舉措，我們將在下半年進行增量需求創造投資，該投資已納入我們上調的獲利指引中。

Putting it together, we expect second half Lee revenue to improve to low single-digit growth. Finally, let me provide an update on Project Jeanius. The planning phase is going well and we have started to move into the execution phase on several initiatives.

綜上所述，我們預計下半年 Lee 的營收將改善至低個位數成長。最後，讓我介紹一下 Jeanius 計畫的最新情況。規劃階段進展順利，我們已開始進入多項措施的執行階段。

We have a line of sight to approximately $100 million of annualized savings at full run rate, none of which are included in our guidance. This will structurally increase our profitability ceiling while adding significant investment capacity and optionality. We will be sharing more details over the coming quarters.

我們的目標是在滿載運轉的情況下每年節省約 1 億美元，但我們的指導中沒有包含這些內容。這將從結構上提高我們的獲利能力上限，同時顯著增加投資能力和選擇性。我們將在未來幾季分享更多細節。

Before I turn it over to Joe, let me reiterate the confidence we have in achieving our '24 plan. Our brands are winning with the consumer, revenue is accelerating and we expect to generate double-digit operating profit growth over the balance of the year. We have also raised our earnings guidance to the top of our prior range and now expect to generate over $350 million in cash from operations, reflecting our significant capital allocation optionality, including over $100 million returned to shareholders year-to-date through our dividend and share repurchases.

在我將其交給喬之前，讓我重申我們對實現「24 小時計畫」的信心。我們的品牌正在贏得消費者的青睞，收入正在加速成長，我們預計今年剩餘時間將實現兩位數的營業利潤成長。我們還將獲利指引提高到先前範圍的最高水平，現在預計將從營運中產生超過3.5 億美元的現金，這反映了我們重要的資本配置選擇，包括今年迄今為止透過股息和紅利返還給股東的超過1 億美元。

We are sensitive to the current operating environment, which remains challenging, much as it's been for the last five years, but our teams are executing at a high level, inventory levels at retail are in good shape and we like the fundamentals of our brand positioning as high value and essential to the lives of many of our consumers.

我們對當前的營運環境很敏感，這仍然充滿挑戰，就像過去五年一樣，但我們的團隊正在高水平執行，零售庫存水平狀況良好，我們喜歡我們品牌定位的基本原理對我們許多消費者的生活來說具有很高的價值和必需品。

We are operating from a position of strength and we enter the second half of the year with great momentum to drive value creation for all stakeholders. Joe?

我們的營運實力雄厚，進入下半年以來，我們以強勁的勢頭為所有利害關係人創造價值。喬？

Thanks, Scott, and thank you all for joining us today. We are pleased with our second quarter results, which came in above our outlook driven by higher revenue, stronger gross margin expansion and better than expected earnings and cash flow. We are executing well against what remained an uneven environment around the globe.

謝謝斯科特，也謝謝大家今天加入我們。我們對第二季的業績感到滿意，由於收入增加、毛利率擴張強勁以及好於預期的盈利和現金流，該業績超出了我們的預期。在全球仍然不平衡的環境下，我們表現良好。

For the quarter, revenue declined 1%. Gross margin expanded 420 basis points, operating earnings increased 10% and EPS grew 27% to $0.98. As expected, the fundamentals of our business strengthened as we closed out the first half of the year. I will review the details of the quarter in a moment, but first, I'd like to share some perspective on how we see the business at the midpoint of the year.

本季營收下降 1%。毛利率成長 420 個基點，營業利潤成長 10%，每股盈餘成長 27% 至 0.98 美元。正如預期的那樣，隨著上半年的結束，我們業務的基本面有所加強。我稍後將回顧本季度的詳細信息，但首先，我想分享一些關於我們如何看待今年中期業務的觀點。

We have seen modest upside relative to our plan, particularly with regard to profitability and cash flow. As a result, we have raised our gross margin, operating earnings and cash flow outlook, including the incremental demand creation investments we announced today. While there have been slight changes to our quarterly phasing, but fundamentals of our business are poised to further accelerate in the second half of the year.

相對於我們的計劃，我們看到了適度的上升空間，特別是在獲利能力和現金流方面。因此，我們提高了毛利率、營業利潤和現金流前景，包括我們今天宣布的增量需求創造投資。雖然我們的季度階段略有變化，但我們業務的基本面預計在下半年進一步加速。

Our balance sheet remains strong, and as a result of stronger earnings and net working capital management, we've been able to return more than $100 million to shareholders year-to-date through share repurchases and dividends. In addition, we made a $25 million voluntary debt payments against our term loan during the second quarter to further optimize our capital structure, yet another example of our balanced capital allocation approach and the optionality our model provides.

我們的資產負債表依然強勁，由於獲利和淨營運資本管理更加強勁，我們今年迄今已能夠透過股票回購和股息向股東返還超過 1 億美元。此外，我們在第二季度根據定期貸款自願償還了 2500 萬美元的債務，以進一步優化我們的資本結構，這是我們平衡資本配置方法和我們的模型提供的選擇性的另一個例子。

We are entering the second half with good momentum and remain on track to achieve solid growth for the balance of the year. POS in the US accelerated through the quarter with May increasing 2% and June increasing 5%. To further support our accelerating revenue trajectory, we are investing an incremental $6 million in demand creation for both brands that will largely occur in the second half of the year.

我們正以良好的勢頭進入下半年，並有望在今年餘下時間實現穩健成長。美國的 POS 整個季度加速成長，5 月成長 2%，6 月成長 5%。為了進一步支持我們不斷加速的營收軌跡，我們將追加投資 600 萬美元，為這兩個品牌創造需求，這主要將在今年下半年進行。

We will continue to plan the business conservatively in light of the environment, but are confident these investments will support increasing brand equity and fuel accelerated growth.

我們將繼續根據環境保守地規劃業務，但有信心這些投資將支持增加品牌資產並推動加速成長。

So with that, let's review the details of our second quarter results. Global revenue declined 1% as 4% growth in DTC was offset by a 2% decline in wholesale. Revenue in the quarter benefited by approximately 2 points from the earlier timing of shipments in the US from the third quarter into the second quarter. Excluding the timing shift, revenue was modestly above our previous expectations.

那麼，讓我們回顧一下第二季業績的詳細資訊。全球營收下降 1%，DTC 4% 的成長被批發業務 2% 的下降所抵消。由於美國的出貨時間從第三季提前到第二季度，該季度的營收成長了約 2 個百分點。排除時間變化，收入略高於我們先前的預期。

By brand, Wrangler global revenue increased 1%. Growth was driven by continued category and channel expansion, including 11% growth in direct to consumer and strong growth in both outdoor and female. In the US, revenue was consistent with the prior year with 10% growth in direct consumer offset by a slight decline in wholesale.

按品牌劃分，牧馬人全球收入成長1%。成長得益於品類和通路的持續擴張，包括直接面向消費者的成長 11%，以及戶外和女性領域的強勁成長。在美國，營收與去年持平，直接消費者成長 10%，但被批發略有下降所抵銷。

Wrangler POS continues to outperform in its largest points of distribution, leading to another quarter of market share gains. Following a softer April, POS strengthened as the quarter progressed with May and June displaying the strongest POS we've seen year-to-date. However, as anticipated, retailers remain in a conservative posture with regard to inventory management, which continues to impact the cadence of our sell-in.

Wrangler POS 在其最大的分銷點繼續表現出色，市場份額又增長了四分之一。繼 4 月疲軟之後，隨著本季度的進展，POS 走強，其中 5 月和 6 月的 POS 表現出我們今年迄今為止所見過的最強勁的表現。然而，正如預期的那樣，零售商在庫存管理方面仍然採取保守態度，這繼續影響我們的銷售節奏。

Wrangler international revenue increased 7%, driven by double digit increases in direct to consumer. The heat generated in the US is translated in key European markets and is helping to bring a younger, more female consumer into the brand. In Europe, strength in DTC was partially offset by wholesale, which remains under pressure due to challenging macro conditions in the region.

在直接面向消費者的兩位數成長的推動下，Wrangler 國際收入成長了 7%。美國產生的熱度被轉移到歐洲主要市場，並有助於吸引更年輕、女性更多的消費者加入該品牌。在歐洲，DTC 的強勢被批發部分抵消，由於該地區宏觀環境充滿挑戰，批發仍面臨壓力。

Now turning to Lee. Global revenue decreased 6%. The quarter unfolded largely as expected, sequentially improving from the first quarter. 10% growth in digital was offset by reduced wholesale shipments in the US and macro pressures in Europe and Asia. US wholesale declined 2%, reflecting retailer inventory management actions and a decrease in seasonals as we expected.

現在轉向李。全球收入下降 6%。該季度的情況基本上符合預期，比第一季有所改善。數位業務 10% 的成長被美國批發出貨量的減少以及歐洲和亞洲的宏觀壓力所抵銷。美國批發量下降 2%，反映了零售商庫存管理行動以及我們預期的季節性下降。

But we saw sequential improvement in both POS and shipments as the quarter progressed with June POS increasing at a mid-single digit rate. Supported by new innovation platforms and the incremental demand-creation investment previously discussed, we expect improved performance for the brand globally as the business inflects to growth in the second half.

但隨著本季的進展，我們看到 POS 和出貨量均出現連續改善，其中 6 月 POS 以中個位數的速度成長。在新的創新平台和先前討論的增量需求創造投資的支持下，我們預計隨著下半年業務的成長，品牌的全球業績將會改善。

Lee International revenue decreased 11%. In Europe, revenue declined 10%. Similar to Wrangler ongoing macro pressures are contributing to cautious retailer behavior and more than offset 20% growth in digital. We expect the macro environment to remain uneven for the balance of the year, consistent with our prior expectations.

利國際營收下降11%。在歐洲，收入下降了 10%。與 Wrangler 類似，持續的宏觀壓力導致零售商行為謹慎，並抵消了 20% 的數位成長。我們預計今年剩餘時間宏觀環境仍將不平衡，這與我們先前的預期一致。

In APAC, revenue declined 13% with very performance by channel. In digital, momentum continued with double digit growth. We are seeing strong performance on live streaming platforms such as Douyin, which grew at a triple digit rate driven by innovation platforms such as lease cooling technology (inaudible)

在亞太地區，收入下降了 13%，各通路的表現都非常出色。在數位領域，勢頭繼續保持兩位數成長。我們看到抖音等直播平台表現強勁，在租賃冷凍技術等創新平台的推動下，該平台以三位數的速度成長（聽不清楚）

In wholesale, we continue to make progress improving the quality and health of our retail network. During the quarter, we took proactive actions to accelerate these initiatives and establish a stronger foundation moving forward. While these actions had a near-term impact on revenue, we are confident the investments we are making will best position our brands for long-term success in the region and are focused on building a healthy, growing marketplace with our partners.

在批發方面，我們不斷進步，提高零售網路的品質和健康狀況。本季度，我們採取了積極行動來加速這些舉措，並為前進奠定了更堅實的基礎。雖然這些行動對收入產生了短期影響，但我們相信，我們正在進行的投資將使我們的品牌在該地區取得長期成功，並專注於與我們的合作夥伴建立一個健康、不斷增長的市場。

For the second half, we expect high single-digit growth for the APAC region. Moving to the remainder of the P&L, adjusted gross margin expanded 420 basis points to 45.2%, driven by the benefits of lower input costs, product mix, inefficiencies we are driving through the supply chain. This was partially offset by targeted pricing actions included in our plan.

對於下半年，我們預計亞太地區將實現高個位數成長。轉向損益表的其餘部分，調整後的毛利率擴大了 420 個基點，達到 45.2%，這得益於較低的投入成本、產品組合以及我們透過供應鏈推動的低效率。我們的計劃中包含的有針對性的定價行動部分抵消了這一影響。

Adjusted SG&A expense was $195 million, up 8% compared to prior year. Investments in direct to consumer and technology were partially offset by lower volume related distribution and freight expenses. And adjusted earnings per share was $0.98, representing an increase of 27% compared to the prior year.

調整後的 SG&A 費用為 1.95 億美元，比上年增長 8%。直接面向消費者和技術的投資被與銷售相關的分銷和貨運費用減少部分抵消。調整後每股收益為0.98美元，較上年成長27%。

Turning to the balance sheet, inventory decreased 22% to $488 million, which was better than our previous expectation. Net working capital management is a top priority and has contributed to our strong cash generation year-to-date. We expect our inventory to decline at a low to mid teen rate in the second half of the year as we approach optimal levels in support of our annual turnover target of approximately 3.5 times.

資產負債表方面，庫存下降 22% 至 4.88 億美元，優於我們先前的預期。淨營運資本管理是重中之重，為我們今年迄今強勁的現金產生做出了貢獻。我們預計，隨著我們接近最佳水準以支援約 3.5 倍的年度營業額目標，我們的庫存將在下半年以較低至中位數的速度下降。

We expect that further unwinding of our inventory to contribute to strong cash generation in the second half and support our capital allocation framework. We finished the quarter with net debt or long-term debt, less cash of $525 million and $224 million of cash on hand.

我們預計，庫存的進一步釋放將有助於下半年強勁的現金產生，並支持我們的資本配置框架。本季結束時，我們的淨債務或長期債務減去現金 5.25 億美元和手頭現金 2.24 億美元。

Our net leverage ratio or net debt divided by trailing 12-month adjusted EBITDA was 1.4 times, trending toward the low end of our targeted range. During the quarter, we repurchased $25 million of stock under our current authorization and as previously announced, our Board declared a regular quarterly cash dividend of $0.5 per share. Additionally, we made a $25 million voluntary payment against our term loan, further strengthening our balance sheet while providing additional flexibility and optionality.

我們的淨槓桿率或淨債務除以過去 12 個月調整後 EBITDA 為 1.4 倍，趨向我們目標範圍的低端。本季度，我們根據當前授權回購了 2500 萬美元的股票，並且正如先前宣布的那樣，我們的董事會宣布定期派發每股 0.5 美元的季度現金股息。此外，我們還自願支付了 2500 萬美元的定期貸款，進一步強化了我們的資產負債表，同時提供了額外的靈活性和選擇性。

Finally, on a trailing 12 month basis, our adjusted return on invested capital was 28%, representing an increase of 210 days points compared to the prior year.

最後，在過去 12 個月的基礎上，我們調整後的投資資本報酬率為 28%，比前一年增加了 210 天點。

Now turning to our outlook. Revenue is still expected to be in the range of $2.57 billion to $2.63 billion, reflecting a decrease of 1% to an increase of 1%. Relative to our plan, we are pleased with our performance through the first half of the year, with our second half revenue well positioned to inflect positively.

現在轉向我們的展望。預計營收仍將在25.7億美元至26.3億美元之間，下降1%至成長1%。相對於我們的計劃，我們對上半年的業績感到滿意，下半年的收入可望產生正面的影響。

Let me share additional perspective on our assumptions for the balance of the year. First, last quarter, we discussed growth expectations of approximately 2% for the Q2 through Q4 period. There is no change to this expectation. However, given the 2 point impact from the earlier timing of shipments into the second quarter from the third quarter, we now expect growth in the second half of between 2% and 5%. Excluding the timing shift, there's no change to our expectation of mid single digit growth from the second half of the year.

讓我分享一下我們對今年剩餘時間的假設的更多觀點。首先，上個季度，我們討論了第二季度至第四季度約 2% 的成長預期。這項預期沒有改變。然而，考慮到出貨時間比第三季提前到第二季的2個百分點的影響，我們現在預計下半年的成長將在2%至5%之間。排除時間變化，我們對下半年中個位數成長的預期沒有變化。

Second, we continue to have good visibility to category expansion, distribution gains, as well as new innovation platforms in the second half. To support these platforms and accelerating revenue growth, we are investing an incremental $6 million in demand creation against both the Wrangler and Lee brands to fuel our momentum for the balance of the year and into 2025.

其次，我們對下半年的品類擴張、分銷收益以及新的創新平台持續保持良好的預見性。為了支持這些平台並加速收入成長，我們將針對 Wrangler 和 Lee 品牌追加投資 600 萬美元，以創造需求，以推動我們今年剩餘時間和 2025 年的發展勢頭。

Third, we continue to plan the business conservatively and assume no meaningful improvement in overall POS or retail inventory positions for the balance of the year. While the consumer has been resilient and inventory levels at retail remain suboptimal, retailers remain in a conservative posture as a result of the uncertain environment.

第三，我們繼續保守地規劃業務，並假設今年剩餘時間整體 POS 或零售庫存狀況不會出現有意義的改善。儘管消費者一直保持彈性，零售庫存水準仍然不理想，但由於環境的不確定性，零售商仍保持保守態度。

In the third quarter, we expect revenue of approximately $660 million, representing 1% growth, including the 2 point impact from the timing shift. We expect mid-single digit growth in the fourth quarter.

我們預計第三季營收約為 6.6 億美元，成長 1%，其中包括時間轉移帶來的 2 個百分點的影響。我們預計第四季將實現中個位數成長。

Moving to gross margin, we are raising our outlook to approximately 44.8% from 44.6%. Our updated outlook represents an increase of 230 basis points compared to adjusted gross margin of 42.5% in 2023, excluding the out-of-period duty expense.

至於毛利率，我們將預期從 44.6% 上調至 44.8% 左右。我們更新後的展望表示，與 2023 年 42.5% 的調整後毛利率相比，成長了 230 個基點（不包括期外關稅費用）。

For the second half of the year, our outlook implies approximately 100 basis points of gross margin expansion driven by the following assumption. First, we will continue to benefit from the structural drivers of mix. This is expected to contribute approximately 30 to 40 basis points to the full year. Beyond this year, we expect the benefits of mix to continue as we scale our DTC and international businesses.

對於今年下半年，我們的前景表明，在以下假設的推動下，毛利率將增加約 100 個基點。首先，我們將繼續受益於混合結構性驅動。預計這將為全年貢獻約 30 至 40 個基點。今年之後，隨著我們擴大 DTC 和國際業務，我們預計混合的好處將繼續存在。

Second, we have good visibility on input costs with costs locked in for the balance of the year on both sourced and manufactured products. We continue to expect over 200 basis points of benefit for the year between lower product costs and proactive actions to optimize our supply chain. These benefits were largely front-half weighted, and we anticipate a modest benefit from lower product costs in the third quarter, and a limited benefit in the fourth quarter.

其次，我們對投入成本有良好的了解，並鎖定了今年剩餘時間採購和製造產品的成本。我們仍然預計，透過降低產品成本和積極採取行動來優化我們的供應鏈，今年的效益將超過 200 個基點。這些收益主要是前半部分加權的，我們預計第三季產品成本下降將帶來適度收益，而第四季收益有限。

Third, we assume a modest headwind from lower pricing, increased promotional activity and supply chain disruption. Collectively, these inputs are expected to negatively impact our gross margin by less than a point for the full year. Taken together, we expect approximately 100 basis points of gross margin expansion in the third quarter and approximately 120 basis points of expansion in the fourth quarter.

第三，我們假設價格下降、促銷活動增加和供應鏈中斷將帶來適度的阻力。總的來說，這些投入預計將對我們全年的毛利率產生不到一個百分點的負面影響。綜合來看，我們預計第三季毛利率將成長約 100 個基點，第四季毛利率將成長約 120 個基點。

And finally, I continue to have a high degree of confidence in our ability to drive significant gross margin expansion over time, supported by project Jeanius. Our planning and execution work is progressing as expected, and we remain on track to share additional details over the next one to two quarters. SG&A is now expected to increase approximately 4%, including the additional demand creation investment I discussed earlier.

最後，我仍然對我們在 Jeanius 項目的支持下隨著時間的推移推動毛利率大幅增長的能力充滿信心。我們的規劃和執行工作正在按預期進行，我們仍將在接下來的一到兩個季度分享更多細節。SG&A 目前預計將成長約 4%，其中包括我之前討論過的額外需求創造投資。

Operating income is now expected to be at the higher end of the prior range of $377 million to $387 million, including the impact of the incremental demand creation investments, reflecting growth of 10% to 11% compared to the prior year, excluding the duty charge. We expect second half operating income to increase at a double digit rate.

目前預計營業收入將達到先前範圍的較高水平，即 3.77 億美元至 3.87 億美元，其中包括增量需求創造投資的影響，與上一年相比增長 10% 至 11%（不包括關稅） 。我們預計下半年營業收入將以兩位數的速度成長。

EPS is now expected to approximate $4.80, including $0.08 of incremental demand creation investments, representing growth of approximately 8% compared to adjusted EPS in the prior year, excluding the out-of-period duty charge. This compares to our prior outlook range of $4.70 to $4.80. Full year EPS growth will be negatively impacted by about 5 percentage points from a higher tax rate, including a 12 percentage point headwind in the second half. We expect third quarter EPS of approximately $1.25.

目前預計每股收益約為 4.80 美元，包括 0.08 美元的增量需求創造投資，與上一年調整後的每股收益相比增長約 8%（不包括期外關稅）。相比之下，我們先前的展望範圍為 4.70 美元至 4.80 美元。全年每股盈餘成長將受到稅率提高約 5 個百分點的負面影響，其中下半年將受到 12 個百分點的不利影響。我們預計第三季每股收益約為 1.25 美元。

Finally, we now expect cash from operations to exceed $350 million as a result of stronger earnings growth and improved net working capital. This compares to our previous outlook for cash from operations to exceed $335 million. Our increased outlook highlights the cash generative nature of the business and provides additional capacity to pursue our capital allocation framework. We will continue to evaluate options to effectively utilize our balance sheet and cash flow to enhance shareholder value.

最後，由於獲利成長強勁和淨營運資本改善，我們現在預計營運現金將超過 3.5 億美元。相比之下，我們之前預計營運現金將超過 3.35 億美元。我們提高的前景凸顯了該業務的現金生成性質，並為追求我們的資本配置框架提供了額外的能力。我們將繼續評估有效利用資產負債表和現金流量來提高股東價值的方案。

Before opening it up for questions, I'd like to reiterate the confidence we have in our 2024 objectives. We are mindful of the uncertain environment and the pressures on the consumer, and while we will continue to manage the business conservatively, we are entering the second half of the year with momentum. Our teams are executing well, and we have line of sight to accelerating revenue growth, double digit operating earnings growth and $200 billion of cash from operations over the balance of the year.

在開始提問之前，我想重申我們對 2024 年目標的信心。我們注意到不確定的環境和消費者面臨的壓力，儘管我們將繼續保守地管理業務，但我們正以強勁的勢頭進入下半年。我們的團隊執行良好，我們的目標是加速收入成長、實現兩位數的營業利潤成長以及在今年餘下的時間裡實現 2000 億美元的營運現金。

The strength of our balance sheet and cash generation further support capital allocation optionality and TSR enhancing investments. We are operating from a position of strength, and I am confident in our ability to continue to deliver superior returns for our stakeholders.

我們的資產負債表和現金產生能力進一步支持資本配置的選擇性和提高股東總回報率的投資。我們的營運實力雄厚，我對我們有能力繼續為利害關係人提供卓越回報充滿信心。

This concludes our prepared remarks, and I will now turn the call back to the operator.

我們準備好的演講到此結束，我現在將把電話轉回給接線生。

Thank you. We will now conduct a question and answer session. (Operator instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Hey, everyone. Good morning. Congrats. Two questions for me. The first one is a more high level. Just maybe Scott and Joe, how are you feeling about the state of the business today just versus six months ago when we started just from a macro perspective across the globe? And then maybe just a little bit more on that $6 million of investment. What's driving that decision? What specifically are those dollars going into?

嘿，大家。早安.恭喜。有兩個問題問我。第一個是更高層次的。也許是史考特和喬，與六個月前我們從全球宏觀角度開始時相比，您對今天的業務狀況有何看法？然後，也許這 600 萬美元的投資會多一點。是什麼推動了這個決定？這些美元具體投入了什麼？

Good morning, Ike. How are you? I'll go ahead and start and kick it over to Joe. We'll go ahead and do this, both of us. But the state of consumer is very similar to the last six months or so. We're in about the same position. Here in the United States, I think that as status quo from the standpoint of the consumer, but very resilient.

早安，艾克。你好嗎？我會繼續開始並將其交給喬。我們倆都會繼續做這件事。但消費者的狀況與過去六個月左右非常相似。我們的處境大致相同。在美國，我認為從消費者的角度來看，這是現狀，但很有彈性。

So we like that about the consumer. In Europe, the macro environment is challenging, and we've kind of had put that in our guide going forward. It's been that way for a couple of years, no real relevant change there. Indonesia as we've talked about, the recovery has been uneven, but we're feeling better about it now and we think it's going to, for us, it'll be positive and inflect positive in the back half.

所以我們喜歡消費者這一點。在歐洲，宏觀環境充滿挑戰，我們已將其納入我們的未來指南中。這種情況已經持續了幾年，沒有真正相關的變化。正如我們所討論的，印尼的復甦並不均衡，但我們現在感覺好多了，我們認為這對我們來說將是積極的，並將在後半段發揮積極作用。

So in general, no big change, but I think the thing that's probably most important for us is like, we continue to just focus on as a team controlling what we can, so just controlling the environment to the best of our ability, creating great product and great, great marketing.

所以總的來說，沒有什麼大的變化，但我認為對我們來說最重要的事情可能是，我們繼續專注於作為一個團隊控制我們能做的事情，所以盡我們最大的能力控制環境，創造很棒的產品和很棒的行銷。

So I think you know, our products are a great value for our great brands. So in an environment and in a time like this, this is where we perform really well. And then we can talk about $6 million in the second, but Joe, anything to add on the consumer?

所以我想你知道，我們的產品對我們偉大的品牌來說有著巨大的價值。因此，在這樣的環境和時期，我們表現得非常好。然後我們可以談論第二個 600 萬美元，但 Joe，有什麼可以向消費者補充的嗎？

Yes, maybe just a few things. Good morning. Ike. Look, we just came through the first quarter better than expected. We came through the first half better than expected. We have the toughest part of our year behind us and the fundamental profile of the business is accelerating. So we feel like we're operating from a position of strength and what remains a volatile time for our sector.

是的，也許只是一些事情。早安.艾克。看，我們第一季的表現比預期好。我們上半場的表現比預期的還要好。我們已經度過了一年中最艱難的時期，業務的基本面正在加速發展。因此，我們覺得我們的營運處於強勢地位，而我們產業目前仍處於動盪時期。

As we said from the beginning of this year, we're planning the business conservatively in light of the environment. However, we've continued to drive strong share gains, strong gross margin improvement, really strong operating earnings growth and cash generation through the first half. So the balance sheet is strong and we're focused on what we can control and that's delivering high-quality fundamental results work.

正如我們從今年年初就說過的，我們正在根據環境保守地規劃業務。然而，上半年我們繼續推動強勁的股價上漲、強勁的毛利率改善、強勁的營業利潤成長和現金產生。因此，資產負債表很強勁，我們專注於我們可以控制的事情，即提供高品質的基本成果工作。

We're certainly mindful of the environment and the pressures on the consumer, but we think we've put ourselves in a position to play offense when (technical difficulty) playing defense.

我們當然會關注環境和消費者面臨的壓力，但我們認為我們已經讓自己處於在（技術難度）防守時進攻的位置。

And a little bit on the $6 million, the additional investment, Ike, that you asked about, we're in a really good position relative to how we're gaining momentum throughout the year. June was really strong from a POS standpoint. So we thought it was prudent to go ahead and put some more money back into marketing, continue to drive those market share gains that we've had, which have been really significant.

關於 600 萬美元的額外投資，艾克，您提到的，相對於我們全年的成長勢頭而言，我們處於非常有利的位置。從 POS 的角度來看，June 確實很強大。因此，我們認為謹慎的做法是繼續投入更多資金進行行銷，繼續推動我們已經擁有的市場份額的成長，這確實非常重要。

I think one of the things that you'll see as an environment, as a consumer is our new big TV commercial. We haven't had one in many years. It's a really big deal for us. It's tested extremely well. Obviously, we're going to run it because it's tested really well (Laughter), but we're really proud of it. And you'll see that starting in September.

我認為身為一個環境、身為消費者，你會看到的一件事就是我們新的大型電視廣告。我們已經很多年沒有過一次了。這對我們來說真的是一件大事。它經過測試非常好。顯然，我們將運行它，因為它經過了很好的測試（笑聲），但我們對此感到非常自豪。從九月開始你就會看到這一點。

And then Lee is really focused from an additional investment standpoint in the digital areas. So in the US and also in Europe and Asia too, so global, I think just that additional investment in the business at this time of the year, at this stage just kind of speak volumes about the confidence we have in full year '24, but more of the confidence we have in our people and our product.

然後，李從額外投資的角度真正關注數位領域。因此，在美國、歐洲和亞洲，在全球範圍內，我認為每年這個時候對業務的額外投資，在這個階段就充分說明了我們對 24 年全年的信心，但我們對我們的員工和產品更有信心。

Got it. And then on a follow-up, maybe for Joe, but Scott, for you as well. Maybe just any more visibility on Jeanius. Just kind of curious, you guys have had some time to work through this. I know the majority of the savings are hitting next year and beyond. But I don't know any update on how we're thinking of the $50 to $100 million like where, it's a big range. Any thoughts there? And then any quantifications on flow through to the bottom line versus reinvestment at this point?

知道了。然後是後續行動，也許是為了喬，但也為了史考特，也為了你。也許只是讓傑尼厄斯有更多的知名度。只是有點好奇，你們已經花了一些時間來解決這個問題。我知道大部分節省的資金將在明年及以後實現。但我不知道我們如何看待 50 至 1 億美元的最新情況，例如在哪裡，這是一個很大的範圍。有什麼想法嗎？那麼此時是否有流向底線與再投資的量化？

Yes, you bet, Ike, Jeanius is incredibly important. Let me first start before we get into some of the details. We put some of our best minds against Jeanius in this organization globally because it's a global project for us. And they have really gotten out of the gate very quickly. It impressed us tremendously on the work that they're doing as a team.

是的，你敢打賭，艾克，傑尼厄斯非常重要。在我們討論一些細節之前，讓我先開始。我們在全球範圍內將一些最優秀的人才投入到這個組織中來反對 Jeanius，因為這對我們來說是一個全球計畫。他們確實很快就走出了大門。他們作為一個團隊所做的工作給我們留下了深刻的印象。

Therefore, we've taken that number up to $100 million. So we are at the high end of the range. So that's how we see it going forward. But as I've stated before, and as Joe has talked about before, it's the right time for us, we did the spin off five, six years ago, but we also ran into the pandemic not long after that. So we didn't get a chance to get after this.

因此，我們將該數字提高到 1 億美元。所以我們處於該範圍的高端。這就是我們對未來的看法。但正如我之前所說，正如喬之前所說，現在對我們來說是正確的時機，我們五、六年前就進行了分拆，但不久之後我們也遇到了大流行。所以我們沒有機會追趕這件事。

So the timing is really right. The brands are doing well. We have the right people and the right talent in place. And we just are very excited about what that can do for our company from an optionality standpoint going forward with the cash that it frees up and also a really important thing for us in any company is how you simplify your business model will work on the key initiatives.

所以時機確實是正確的。這些品牌的表現都不錯。我們擁有合適的人員和合適的人才。我們非常興奮，從可選性的角度來看，它可以為我們公司帶來什麼，以及它釋放的現金，對於我們任何公司來說，真正重要的事情是如何簡化您的業務模式將在關鍵方面發揮作用倡議。

And I think that's one of the things that we're doing really well as an organization right now. We're working on the key things that drive performance and also drive culture and also drive our consumer connectivity, which is really important in that is going to help us tremendously with Jeanius. It's not just that cash and how we deploy, it will be significant, Joe?

我認為這是我們作為一個組織目前做得非常好的事情之一。我們正在致力於推動績效、文化和消費者連結的關鍵問題，這一點非常重要，因為這將對我們與 Jeanius 的合作產生巨大幫助。這不僅僅是現金以及我們如何部署的問題，這將是重要的，喬？

Yes, sure. So I would say that planning and early execution of work is progressing as we expected. So we remain on track. We do intend to share more specific details in the next quarter or two, but suffice to say, we're really confident in the $100 million opportunity that we have in front of us.

是的，當然。所以我想說，工作的規劃和早期執行正在按照我們的預期取得進展。所以我們仍然在正軌上。我們確實打算在下一兩個季度分享更多具體細節，但足以說明的是，我們對擺在我們面前的 1 億美元的機會充滿信心。

Just from a shaping standpoint, those savings will be more gross profit driven than SG&A driven. And I think at this point, you can think about that as two-thirds, one-thirds in terms of the split. We do expect to reinvest a portion of the savings back into the business. We intend to lay out the details of that in the context of how we're thinking about 2025 in the next couple of years, the coming quarter.

僅從塑造的角度來看，這些節省將更多地由毛利驅動，而不是由銷售管理費用驅動。我認為在這一點上，你可以將其視為三分之二，就分裂而言，三分之一。我們確實希望將一部分儲蓄重新投資回業務。我們打算在未來幾年（下個季度）如何思考 2025 年的背景下詳細闡述這一點。

So overall, we're really excited about the program and what we think we can deliver in terms of accelerated growth, improved profitability and returns on capital over the next couple of years.

總的來說，我們對該計劃以及我們認為在未來幾年內能夠在加速成長、提高獲利能力和資本回報方面實現的目標感到非常興奮。

Thanks so much, guys.

非常感謝，夥計們。

Thanks, Ike.

謝謝，艾克。

Brooke Roach, Goldman Sachs.

布魯克·羅奇，高盛。

Good morning and thank you for taking our question. I was hoping you could help us understand the drivers of your confidence in your outlook for lead performance improvement in the back half. How should we think about that improvement between the US and Asia?

早安，感謝您提出我們的問題。我希望您能幫助我們了解您對後半段領先表現改善前景充滿信心的驅動因素。我們該如何看待美國和亞洲之間的改善？

In the US, could you help us quantify the portion of improvement that you expect to see as a result of new distribution or demand creation investments relative to the underlying base business? And then in Asia, can you provide a little bit more color on what's underpinning that confidence in the improvement to high single digits in second half? Thank you.

在美國，您能否幫助我們量化您預期因新的經銷或需求創造投資相對於基礎業務而帶來的改善部分？然後在亞洲，您能否提供更多資訊來說明是什麼支撐著人們對下半年實現高個位數成長的信心？謝謝。

Good morning, Brooke. I'll go ahead and start and then kick it over to Joe. We've made some significant changes to our organization here recently and we feel real confident on how we're thinking about this as two global brands working together. And Lee, we've done a lot of work in a very short period of time behind the scenes on product, on consumer insights, segmentation, on building the team, which is really important.

早上好，布魯克。我會繼續開始，然後把它交給喬。最近，我們對我們的組織進行了一些重大改變，我們對兩個全球品牌合作的方式充滿信心。Lee，我們在很短的時間內在產品、消費者洞察、細分、團隊建立等方面做了很多幕後工作，這些工作非常重要。

And we're starting to see some very encouraging signs, although I want to make sure everybody realize it's very early, but we had a pretty significant share and POS increase here at the end of the second quarter, which was really important. And I think it was an important confidence boost for the team to see all the work that's been going start to pay off a little bit.

我們開始看到一些非常令人鼓舞的跡象，儘管我想確保每個人都意識到現在還為時過早，但我們在第二季末的份額和銷售點有了相當大的增長，這非常重要。我認為，看到所有正在進行的工作開始得到一點回報，對團隊來說是一個重要的信心提升。

It won't happen overnight, but I'm confident from the very high level that we're on the right path going forward. It's a great brand with an incredible amount of history and heritage and we have the right team against it going forward globally, which is really important to us. Joe?

這不會在一夜之間發生，但我從高層相信我們正走在正確的道路上。這是一個偉大的品牌，擁有令人難以置信的歷史和遺產，我們有合適的團隊來支持它在全球範圍內的發展，這對我們來說非常重要。喬？

Yes, Brooke maybe on Asia. So excluding the actions that we took in the quarter on a sequential basis, the business was actually fairly consistent. We saw really, really strong performance on the digital side, which continues. And I think as we sit mid point of the year, pretty good visibility into the high single-digit growth in the back half of the year.

是的，布魯克也許在亞洲。因此，排除我們在本季按順序採取的行動，業務實際上相當一致。我們看到數字的表現非常非常強勁，而且這種情況還在持續。我認為，當我們正值今年中期時，我們可以很好地看到下半年的高個位數成長。

I'd say the biggest change we've been working to improve the overall quality and health of our retail network in China. We've been in the process of consolidating partners moving to more strategic partners with strong capabilities and that have the ability to invest alongside us, which we think sets a stronger foundation for the region moving forward, and we think we'll start to reap the benefits of those actions in the second half.

我想說，我們一直在努力提高中國零售網路的整體品質和健康狀況。我們一直在鞏固合作夥伴，轉向更具實力、有能力與我們一起投資的戰略合作夥伴，我們認為這為該地區的前進奠定了更堅實的基礎，我們認為我們將開始收穫下半年這些行動的好處。

The APAC market, mainly China, similar to the US has been plagued with excess inventory in the channel. And we've been working with our partners over the past 12 months. And at this point, we think that situation is largely behind us.

亞太市場（主要是中國）與美國類似，一直受到通路庫存過剩的困擾。在過去 12 個月裡，我們一直與合作​​夥伴合作。目前，我們認為這種情況已經基本過去了。

Great. Thank you so much. I'll pass it on.

偉大的。太感謝了。我會把它傳遞下去。

Bob Drbul, Guggenheim.

鮑勃·德布爾，古根漢。

Hi, good morning, guys.

嗨，早上好，夥計們。

Hey, Bob.

嘿，鮑伯。

The first question I have is, Scott, can you just talk about where you think we are in this western cycle, the sort of denim cycle where it's playing the best, even by segment.

我的第一個問題是，史考特，你能談談你認為我們在這個西方周期中的位置嗎？

And then second question is on the Cowboys, the demand creation investments from the Cowboys, do you think Jerry Jones should re-up back before season starts or they should just play it out?

第二個問題是關於牛仔隊的，牛仔隊的需求創造投資，你認為傑裡瓊斯應該在賽季開始前重新恢復，還是應該繼續比賽？

(Laughter) Well, let me go ahead and start with the cowboys. Yes, for sure, we are big cowboys fans here now. We're big Dak fans and we're all in. And we do love our partnership there. It's gone really well. But from a Western in denim standpoint, we think that this is just a casualization across the globe. And we've kind of tried really hard to stop talking about, some people talk about these denim moments and denim cycles and stuff, and we think we're kind of well past that.

（笑聲） 好吧，讓我從牛仔開始。是的，當然，我們現在是這裡的牛仔忠實粉絲。我們是 Dak 的忠實粉絲，我們都參與其中。我們確實很喜歡我們在那裡的合作關係。一切都很順利。但從西方牛仔的角度來看，我們認為這只是全球的休閒化。我們非常努力地試圖停止談論，有些人談論這些牛仔布時刻和牛仔布週期之類的東西，我們認為我們已經過去了。

And the denim is really just acceptable everywhere. And we think that we've done a really nice job as a company going ahead and growing those other businesses that are ancillary to a two kind of, for instance, as we've talked quite a bit about in our prepared remarks, our All Terrain Gear, and we've got two big, big products that we're kicking off in July, we kicked off our Cliffside pant from All Terrain Gear, and then in August we're kicking off our outdoor Keno. And that business has doubled in the last couple of years, $200 million.

而且牛仔布確實在任何地方都可以接受。我們認為，作為一家公司，我們做得非常好，正在繼續發展那些輔助兩種業務的其他業務，例如，正如我們在準備好的發言中談到的那樣，我們的所有業務Terrain Gear，我們在7月推出了兩款非常非常大的產品，我們從All Terrain Gear 推出了Cliffside 褲子，然後在8 月我們將推出戶外Keno。該業務在過去幾年中翻了一番，達到 2 億美元。

And we think we have a line of sight on that business to $400 million in the next few years. But you know, the Western piece of it, what's funny, people talk about Western kind of up and down, but we've been growing the Western business pretty steady since 1947. So we kind of see it, as you know, a business that's going to continue to grow.

我們認為，我們的目標是在未來幾年內將業務達到 4 億美元。但你知道，西方的部分，有趣的是，人們談論西方的方式有起有落，但自 1947 年以來，我們一直在相當穩定地發展西方業務。因此，正如您所知，我們認為這是一項將繼續成長的業務。

And the one thing that's been kind of interesting in the Western businesses become more global, Bob, in the last kind of a year, year and a half, in that Europe is having a really nice moment and it seems to be really sticky there in that respect and we're all in on the Western side. I mean, you know, Laney Wilson, we just re-upped for two more years. Cody Johnson's line kicks off with us here real soon.

鮑勃，在過去的一年半里，西方企業變得更加全球化，這是一件有趣的事情，歐洲正在經歷一個非常美好的時刻，而且它似乎非常粘在那裡尊重這一點，我們都站在西方一邊。我的意思是，你知道，萊尼·威爾遜，我們剛剛又恢復了兩年。科迪·約翰遜 (Cody Johnson) 的線路很快就會在我們這裡拉開序幕。

WNFRs coming up in December. Our investments that we make and rodeos and all of our partners and I think most of all our product. We've got a leading position in both tops and bottoms, male and female. And we just continue to resonate really strongly with our consumer. And if you're real cowgirl and a real cowboy, you were Wrangler. It's just that simple.

WNFR 將於 12 月推出。我們所做的投資、牛仔競技表演以及我們所有的合作夥伴，我認為最重要的是我們的產品。無論是上裝還是下裝、男裝還是女裝，我們都處於領先地位。我們只是繼續與消費者產生強烈的共鳴。如果你是真正的女牛仔和真正的牛仔，那麼你就是牧馬人。就是這麼簡單。

Thank you.

謝謝。

Cowboys.

牛仔們。

Jim Duffy, Stifel.

吉姆·達菲，斯蒂菲爾。

Hi, this is Peter McCullough on for Jim, thanks for taking our questions. First, I wanted to get a little more clarity on the market share momentum that the consumer level, considering both own DTC and at the point of sale where you have visibility, sequential improvement in DTC is evident and the monthly performance is constructive. Can you talk about your expectations built into the second half guide and any color you can provide on quarter-to-date trends?

大家好，我是吉姆的彼得麥卡洛，感謝您回答我們的問題。首先，我想更清楚地了解消費者層面的市場份額勢頭，考慮到自己的 DTC 和在可見性的銷售點，DTC 的連續改善是明顯的，並且每月的表現是建設性的。您能否談談您對下半年指南的期望以及您可以提供的有關季度至今趨勢的任何資訊？

Sure. Do you want me to start?

當然。你想讓我開始嗎？

Go ahead and start, Scott.

開始吧，史考特。

So we feel really good. We have been, we monitor with Circana, our market share gains all the time. And we've had a very, very nice run over the last two years with both of our brands from a market share standpoint, that is all about great product at a great price in the right channels. I think we're very fortunate with the partners that we have in our channels, the channels that we play in, but we're controlling our own destiny by creating great product.

所以我們感覺非常好。我們透過 Circana 進行監控，我們的市佔率一直在成長。從市場佔有率的角度來看，過去兩年我們的兩個品牌都取得了非常非常好的業績，這就是在正確的管道以優惠的價格提供優質的產品。我認為我們非常幸運，我們的管道中有合作夥伴，我們參與的管道，但我們正在透過創造偉大的產品來控制自己的命運。

Now you heard earlier, we're investing another $6 million in the business here in the second half because we think that it's an opportune time to continue to go ahead and gain share in the market and gain share in the channels that we go ahead play and specifically.

現在您之前聽說過，我們下半年將在此處的業務上再投資 600 萬美元，因為我們認為現在是繼續前進並獲得市場份額並在我們繼續開展的渠道中獲得份額的最佳時機具體來說。

And from a DTC standpoint, our plan is to speak more about that in a pretty elegant level when we go ahead and have our upcoming data that we're going to spend with you, the investor day here, that we'll announce that date soon. But there's more and more to talk about there and we feel real confident about our plans for that going forward in the future.

從DTC 的角度來看，我們的計劃是在一個相當優雅的層面上更多地談論這一點，當我們繼續前進並獲得我們將與您一起度過的即將到來的數據時，這裡的投資者日，我們將宣布該日期很快。但有越來越多的事情值得討論，我們對未來的計劃充滿信心。

Joe, anything to add?

喬，有什麼要補充的嗎？

Yes, Hey, Peter, maybe just in terms of the numbers, I mean, in Q2, we did see our POS outpaced our shipments. We did continue to gain share across both brands, but that was tempered by what we would characterize as continued retailer caution on the inventory management front. We are starting to see better balance between sell in and sell through, a more normalized replenishment order pattern. But look, inventory levels at retail are in good shape.

是的，嘿，彼得，也許只是從數字來看，我的意思是，在第二季度，我們確實看到我們的 POS 出貨量超過了我們的出貨量。我們確實繼續獲得兩個品牌的份額，但這受到我們所描述的零售商在庫存管理方面持續謹慎的影響。我們開始看到賣出和賣出之間的更好平衡，這是一種更標準化的補貨訂單模式。但看，零售庫存水準狀況良好。

I said in the prepared remarks, they even are suboptimal across some of the key accounts in certain categories. But we saw good performance across the quarter. The acceleration was really driven by seasonals, outdoor and female. So after a softer April, May and June really, really came on strong.

我在準備好的評論中說過，對於某些類別的一些關鍵客戶來說，它們甚至不是最理想的。但我們在整個季度看到了良好的表現。這種加速實際上是由季節性、戶外活動和女性推動的。因此，在經歷了四月的疲軟之後，五月和六月真的非常非常強勁。

Thanks. And then on the capital allocation, as you move towards the low end of the target net leverage range at 1 times levered and mentioning some TSR accretive actions. Can you talk about your considerations for investments in the business, shareholder returns, and also how you might be thinking about potential M&A? Thanks.

謝謝。然後在資本配置方面，當您向 1 倍槓桿的目標淨槓桿範圍的低端移動時，並提到一些 TSR 增值行動。您能否談談您對業務投資、股東回報的考慮，以及您如何考慮潛在的併購？謝謝。

Sure. I'll start, Peter, we have been very consistent. And one of the things I think I'm really proud of our company about is that we haven't done anything just to do a deal. We have been very consistent in our approach and we've talked about not surprising the community and continue to go down that path. We're going to make sure that we do something, and if we do something, it's going to be a fair price, it's going to be accretive, it's going to go ahead and make a lot of sense to everybody.

當然。首先，彼得，我們一直都非常一致。我認為我真正為我們公司感到自豪的一件事是，我們沒有做任何事情只是為了達成交易。我們的方法一直非常一致，我們已經談到不要讓社區感到驚訝，並將繼續沿著這條路走下去。我們將確保我們做某事，如果我們做某事，它將是一個公平的價格，它將是增值的，它將繼續前進，並對每個人都有意義。

And we just haven't found that and we're not going to force it. I think that's one of the things that I as I look back in the last six years of being the CEO, that we haven't forced the issue just to make people happy from an external standpoint. And so we feel really good about that. But I think you saw this quarter some of the things that we did from a capital allocation, we just have so much optionality because we're creating a lot of cash.

我們只是還沒有發現這一點，而且我們不會強迫它。我認為這是我在擔任執行長的過去六年中所做的事情之一，我們並沒有僅僅為了從外部角度讓人們高興而強迫這個問題。所以我們對此感覺非常好。但我認為你看到了本季我們透過資本配置所做的一些事情，我們有很多選擇，因為我們正在創造大量現金。

And you saw that we did a $25 million buyback and also paid down some debt voluntarily. But we've returned $200 million to our shareholders year-to-date, and we're still only halfway through the year. So fairly significant. And Joe talked in his script, a lot about the cash that we're creating and how we're upping that a little bit.

你看到我們進行了 2500 萬美元的回購，並自願償還了一些債務。但今年迄今我們已經向股東返還了 2 億美元，今年才剛過半。所以相當重要。喬在他的劇本中談到了很多關於我們正在創造的現金以及我們如何稍微增加一點的現金。

So it continues to give us more flexibility as we go forward. As you can see, we're investing it back into the brands also, but it's just a great place to be. And I think the one thing that you can take from this is that count on us to make the right decisions, count on us to make the right decisions for our shareholders and count on us to be very prudent in making sure that if we do do M&A, it's going to make a lot of sense. But we don't feel the pressure and we don't feel rushed to have to do anything if it's not right.

因此，隨著我們的前進，它繼續為我們提供更大的靈活性。正如您所看到的，我們也將其重新投資到品牌上，但這只是一個很棒的地方。我認為你可以從中學到的一件事是，相信我們會做出正確的決定，相信我們會為我們的股東做出正確的決定，並相信我們會非常謹慎地確保如果我們真的這麼做了併購，這將很有意義。但我們不會感到壓力，也不會因為事情不對勁而急於採取行動。

Very clear. Thank you.

非常清楚。謝謝。

Mauricio Serna, UBS.

毛里西奧·塞爾納，瑞銀。

Great. Good morning and thanks for taking our questions. I guess maybe, if you could elaborate a little bit more on the timing shift impacting Q2 and Q3 revenue. Just curious about that 200 basis points shipment, was that more like there was an acceleration in the POS and, the retailers asked up pull forward some of that demand? Or is it just to be cautious because of supply chain challenges?

偉大的。早安，感謝您提出我們的問題。我想也許吧，如果您能詳細說明影響第二季和第三季營收的時間變化。只是好奇 200 個基點的出貨量，是否更像是 POS 的加速，而零售商要求提前拉動部分需求？還是只是因為供應鏈挑戰而保持謹慎？

And then maybe on the gross margin guidance, it seems like when you're talking about the drivers, they are very similar, they are the same drivers and seems like the impact from them are very similar to what you talked about in the first quarter results. So just wondering, what is the incremental driver that led you to increase your gross margin guidance by 20 basis points? Thank you.

然後，也許就毛利率指導而言，當您談論驅動因素時，它們似乎非常相似，它們是相同的驅動因素，它們的影響似乎與您在第一季度談到的非常相似結果。所以我想知道，促使您將毛利率指引提高 20 個基點的增量驅動因素是什麼？謝謝。

Hey, Mauricio. Good morning. So yes, on the timing shift, it was about $12 million or about 2 points of growth in the quarter and about a nickel of EPS. Relative to the Q2 outlook, we provided, excluding the timing shift, we came in about a point ahead on the top line and about $0.08 on the EPS, mainly driven by stronger gross margin.

嘿，毛里西奧。早安.所以，是的，在時間上的轉變，該季度的增長約為 1200 萬美元，即約 2 個百分點，每股收益約為 5 美分。相對於第二季的前景，我們認為，排除時間變化，我們的營收領先約一個百分點，每股收益約 0.08 美元，這主要是由於毛利率走強。

I think look, the driver here, we had not expected in the outlook an improvement in POS. We had not expected overall inventory levels to improve and we saw exactly that. So I think given the the POS performance of both brands and where inventory levels are, we saw some demand pull into the quarter relative to our previous expectations.

我認為看，這裡的司機，我們沒有預料到 POS 的前景會有所改善。我們沒有預期整體庫存水準會改善，但我們確實看到了這一點。因此，我認為考慮到兩個品牌的 POS 表現以及庫存水平，我們看到相對於我們先前的預期，本季的需求增加。

In terms of the full year gross margin change, we really flowed through the upside that we saw in the quarter to the full year and kept our back half assumptions intact at this point.

就全年毛利率變化而言，我們確實將本季看到的上行趨勢轉移到了全年，並且此時保持我們的後半假設不變。

Hello.

你好。

Thanks, Mauricio.

謝謝，毛里西奧。

Sorry, I think I missed the last part of the answer or cut off at a very less ten seconds or something like that?

抱歉，我想我錯過了答案的最後一部分，或者在不到十​​秒鐘的時間內就被切斷了，或者類似的事情？

Yes, sure. So from a full year gross margin standpoint, we increased the full year outlook by about 20 basis points. That's really the the upside that we saw in the second quarter that we were able to flow through for the full year. For the second half, we've kept our assumptions intact at this point.

是的，當然。因此，從全年毛利率的角度來看，我們將全年預期上調了約 20 個基點。這確實是我們在第二季度看到的全年的上行趨勢。對於下半年，我們目前保持了完整的假設。

Got it. And then just maybe if I could follow-up, just wondering on the commentary on APAC, so, could you elaborate a little bit more like what are the actions that you're taking on that specific market? And just again, what gives you confidence that there's going to be sales growth in the high single-digit range in the second half? Thanks.

知道了。然後也許我可以跟進，只是想知道亞太地區的評論，那麼，您能否詳細說明您在該特定市場上採取的行動？再說一次，是什麼讓您有信心下半年的銷售額將實現高個位數成長？謝謝。

Yes, Mauricio, I'll take that. So the actions we took, we're actively clearing excess inventory with our partners. We've really been working through this for the last 12 to 18 months. So there's no real new news here, but it did have an impact in the quarter.

是的，毛里西奧，我會接受的。所以我們採取的行動是，我們正在積極與合作夥伴清理多餘的庫存。在過去的 12 到 18 個月裡，我們一直在努力解決這個問題。所以這裡沒有真正的新消息，但確實對本季產生了影響。

For the second half, we've got pretty good visibility at this point. So we expect continued strong performance in digital. We do expect the wholesale business to reinflate back to growth given some of the challenges we've been working through over the past 12 to 18 months.

對於下半場，我們現在有很好的能見度。因此，我們預計數位領域將持續保持強勁表現。鑑於我們在過去 12 至 18 個月中遇到的一些挑戰，我們確實預計批發業務將重新恢復成長。

Great. Thanks and congratulations on the results.

偉大的。感謝並祝賀結果。

Paul Kearney, Barclays.

保羅·科爾尼，巴克萊銀行。

Hey, good morning. Thanks for taking the questions. I know we are, (technical difficulty) the next few quarters on project Jeanius. But I'm wondering if at a high level, if you can qualitatively go over some of the specific projects within that are driving some of the excitement?

嘿，早安。感謝您提出問題。我知道我們將在接下來的幾個季度進行 Jeanius 專案（技術難度）。但我想知道，在較高的層面上，您是否可以定性地審查其中一些令人興奮的具體項目？

And then related to that, with improved outlook for cash flow, can you go over what are the drivers behind the improvement in working capital that are sustainable? Thank you.

與此相關的是，隨著現金流前景的改善，您能否回顧一下永續營運資本改善背後的驅動因素是什麼？謝謝。

Yes. Hey, Paul, good morning. Yes, so on project Jeanius, we'll get into the details of this in the next quarter or two or will lay out the plan in fairly good detail in terms of the areas of the business that were touching. In terms of the stronger cash flow, it's really the stronger earnings and the stronger net working capital management that we see at this point in the year.

是的。嘿，保羅，早安。是的，對於 Jeanius 項目，我們將在接下來的一兩個季度詳細介紹這一點，或就所涉及的業務領域詳細地制定計劃。就更強勁的現金流而言，我們今年此時看到的實際上是更強勁的利潤和更強勁的淨營運資本管理。

Laurent Vasilescu, BNP Paribas.

洛朗·瓦西萊斯庫，法國巴黎銀行。

Good morning. Thank you very much for taking my question. In the prepared remarks, you called for both brands to accelerate in the second half. Just curious to understand this a little bit more so we can model this out properly. Does that mean that Lee should grow year-over-year in the second half?

早安.非常感謝您回答我的問題。在準備好的演講中，您呼籲兩個品牌在下半年加速發展。只是想更多地了解這一點，以便我們可以正確地對其進行建模。這是否意味著李在下半年應該會比去年同期成長？

Hey, Laurent, this is Joe, that's our expectation. You'll see relatively stronger growth in Wrangler but we do expect Lee to inflect positively in the second half.

嘿，洛朗，這是喬，這就是我們的期望。你會看到牧馬人相對強勁的成長，但我們確實預期李在下半年會出現正面的變化。

Okay, great. That's very helpful, Joe, thank you very much. And then on project Jeanius $100 million, that's great to hear. Is it still going to be a positive impact in the fourth quarter? I think you mentioned that in the last two calls and then kind of any kind of, any kind of guardrails around, I think that's a gross number. I know you probably invest, reinvest, but any cost considerations that we should consider for from a GAAP EPS perspective?

好的，太好了。這非常有幫助，喬，非常感謝你。然後是價值 1 億美元的 Jeanius 項目，聽到這個消息真是太好了。第四季還會有正面影響嗎？我想你在過去兩次通話中提到過，然後周圍有任何類型的護欄，我認為這是一個總數字。我知道你可能會投資、再投資，但從 GAAP 每股盈餘的角度來看，我們應該考慮哪些成本因素？

Yes. Hey, Laurent. Yes, no change. There's nothing contemplated in the outlook from project Jeanius at this point. We need to get a little further along, but we do expect to begin to see the benefits of Project Jeanius late this year and then those savings will scale more meaningfully into next year.

是的。嘿，洛朗。是的，沒有變化。目前，Jeanius 計畫的前景還沒有任何考慮。我們需要更進一步，但我們確實希望在今年稍後開始看到 Jeanius 專案的好處，然後這些節省將更有意義地擴展到明年。

We will have some costs, as I said last quarter, some transitional one-time costs to get at the savings, and we'll lay those out for the group. So you've got a good understanding of the overall returns that we expect on the program.

正如我上個季度所說，我們將有一些成本，一些過渡性的一次性成本來節省成本，我們將為集團安排這些成本。這樣您就已經很好地了解了我們對該計劃的預期整體回報。

Very helpful. Thank you very much, Joe, for all your help.

非常有幫助。非常感謝你，喬，你的幫助。

Thank you. There are no further questions in queue. At this time, I would like to turn the floor back over to Scott Baxter for closing comments.

謝謝。隊列中沒有其他問題。現在，我想將發言權交還給斯科特·巴克斯特（Scott Baxter）以供結束評論。

As you can see, we had a really strong quarter, count on us to stay focused on our business and really appreciate all the support that each and every one of you give us. And we'll look forward to seeing you here later in the fall. Have a great rest of the summer, everyone. Thank you very much for the support.

正如你所看到的，我們度過了一個非常強勁的季度，相信我們會繼續專注於我們的業務，並非常感謝你們每一個人給予我們的所有支持。我們期待秋季晚些時候在這裡見到您。大家暑假好好休息吧。非常感謝您的支持。

Thank you. This does concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。祝你有美好的一天。