Lifetime Brands Inc (LCUT) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Lifetime Brands' second quarter 2024 earnings conference call. (Operator Instructions) I would now like to introduce your host for today's conference, Carly King. Ms. King, you may begin.

早安，女士們、先生們，歡迎參加 Lifetime Brands 的 2024 年第二季財報電話會議。（操作員說明）現在我想介紹一下今天會議的主持人卡莉·金。金女士，您可以開始了。

Thank you. Good morning, and thank you for joining Lifetime Brands second quarter 2024 earnings call. With us today from management are Rob Kay, Chief Executive Officer, and Larry Winoker, Chief Financial Officer.

謝謝。早安，感謝您參加 Lifetime Brands 2024 年第二季財報電話會議。今天與我們一起出席的管理層包括首席執行官 Rob Kay 和首席財務官 Larry Winoker。

Before we begin the call, I'd like to remind you that our remarks this morning may contain forward looking statements that relate to the future performance of the company, and these statements are intended to qualify for the Safe Harbor protection from liability established by the Private Securities Litigation Reform Act.

在我們開始通話之前，我想提醒您，我們今天早上的演講可能包含與公司未來業績相關的前瞻性陳述，這些陳述旨在獲得由私人證券訴訟改革法。

Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in today's press release and other factors are contained filings with the Securities and Exchange Commission. Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as required by law, the company does not undertake any obligation to update such statements.

任何此類聲明都不能保證未來業績，今天的新聞稿中強調了可能影響我們業績的因素，其他因素包含在向美國證券交易委員會提交的文件中。此類聲明基於截至本協議發布之日公司可獲得的信息，並可能因未來發展而發生變化。除法律要求外，本公司不承擔更新此類聲明的義務。

Our remarks this morning and in today's press release also contain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in such release is a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP.

我們今天早上的言論和今天的新聞稿還包含美國證券交易委員會頒布的 G 條例含義內的非公認會計準則財務措施。此類發布中包括這些非公認會計原則財務指標與根據公認會計原則計算的可比較財務指標的調節表。

So with that introduction, I'd like to turn the call over to Rob Kay. Please go ahead Rob.

介紹完畢後，我想將電話轉給 Rob Kay。請繼續，羅布。

Thank you. Good morning, everyone, and thank you for joining us today. Our second quarter results were in line with our expectations, even though macro-economic pressures led to weaken demand across end markets. Despite these headwinds, we are pleased to report that we continued to execute on our plan for the full year and are making progress toward completing several strategic initiatives, which will bolster our full year performance.

謝謝。大家早安，感謝您今天加入我們。儘管宏觀經濟壓力導致終端市場需求減弱，但我們第二季的業績符合我們的預期。儘管存在這些不利因素，我們很高興地報告，我們繼續執行全年計劃，並在完成多項戰略舉措方面取得進展，這將提振我們的全年業績。

This includes increasing market share in a majority of our categories, delivering year over year e-commerce growth in our core US market and expanding gross margin. Our ability to deliver solid performance despite challenges in our operating environment is a testament to the work we have done to strengthen our business model, and we are pleased to have delivered another quarter of outperformance in comparison to the market and our peers.

這包括增加我們大多數類別的市場份額、在我們的核心美國市場實現電子商務逐年增長以及擴大毛利率。儘管我們的營運環境面臨挑戰，但我們仍然能夠提供穩定的業績，這證明了我們為加強我們的業務模式所做的工作，我們很高興與市場和同行相比又實現了一個季度的優異表現。

In the second quarter, we delivered $141.7 million in net sales compared to $146.4 million in the same period last year. Over the last 12 months, we have generated adjusted EBITDA of $56.6 million. The drag on net sales reflected a sluggish market in combination with overall seasonal timing impacts in the second quarter for our core US business.

第二季度，我們實現了 1.417 億美元的淨銷售額，而去年同期為 1.464 億美元。在過去 12 個月中，我們的調整後 EBITDA 為 5,660 萬美元。淨銷售額的拖累反映了市場低迷以及第二季度我們核心美國業務的整體季節性時間影響。

Despite weakened demand, we grew market share across the majority of our categories on a year-over-year basis, a testament to the fact that our leading portfolio of brands continues to resonate with customers. The level of decline observed this quarter was in line with our expectations and the macroeconomic headwinds were largely baked into the guidance we provided last year for the full year.

儘管需求疲軟，我們大多數類別的市場份額都同比增長，這證明了我們領先的品牌組合繼續與客戶產生共鳴。本季觀察到的下降水準符合我們的預期，宏觀經濟不利因素在很大程度上已納入我們去年提供的全年指引中。

We believe that Lifetime's results will improve the back half of the year as we execute our operational plan, and we continue to expect to deliver in line with our expectations for 2024.

我們相信，隨著我們執行營運計劃，Lifetime 的業績將在今年下半年有所改善，並且我們繼續期望其業績符合我們對 2024 年的預期。

Turning to our international segment, in Europe, the impact of the UK's economic recession has persisted, which has prevented any meaningful recovery in demand. We continue to take action to offset the recessionary impacts, including implementing changes to our UK sales strategy to shift our legacy focus away from independent retailers and specialty cook shops and prioritizing larger national accounts.

轉向我們的國際部分，在歐洲，英國經濟衰退的影響持續存在，這阻礙了需求的任何有意義的復甦。我們繼續採取行動抵消經濟衰退的影響，包括對英國銷售策略進行調整，將我們的傳統重點從獨立零售商和特色烹飪店轉移，並優先考慮更大的國民帳戶。

This pivot is already paying dividends as we were able to maintain relatively flat sales for this segment despite turbulent market conditions. We are also seeing the impact of the ongoing conflict in the Red Sea as rerouted shipments are taking longer to reach Europe. This has resulted in a need to increase safety stock and therefore an increased investment in additional inventory, which will help mitigate these impacts.

這一轉變已經帶來了紅利，因為儘管市場條件動盪，我們仍能夠保持該細分市場相對平穩的銷售。我們也看到了紅海持續衝突的影響，因為改變路線的貨物需要更長的時間才能到達歐洲。這導致需要增加安全庫存，從而增加對額外庫存的投資，這將有助於減輕這些影響。

In Asia Pacific, we continue to gain traction in terms of both listings and brands in Australia and New Zealand. As a result of our change in go-to market strategy, we are now in the second phase of this two-step process where we would discontinue our partnership with our distributor in the region and move to building out our own infrastructure. Once complete, this will allow us to implement a fully direct APAC sales strategy.

在亞太地區，我們在澳洲和紐西蘭的上市和品牌方面繼續獲得關注。由於我們改變了進入市場策略，我們現在正處於這個兩步驟流程的第二階段，我們將終止與該地區經銷商的合作夥伴關係，並轉向建立我們自己的基礎設施。一旦完成，這將使我們能夠實施完全直接的亞太地區銷售策略。

Turning now to some of our growth initiatives. We are pleased with the incredible success of our Dolly Parton line of products, which was successfully launched in this second quarter and has performed above our and our customers' expectations.

現在轉向我們的一些成長舉措。我們對 Dolly Parton 系列產品取得的令人難以置信的成功感到高興，該產品於第二季度成功推出，其表現超出了我們和客戶的期望。

While last quarter we signaled that we did not expect to be able to begin shipping until the third quarter. We were able to begin shipments in the second quarter. While the majority of shipments have not yet completed, initial sell-through numbers have greatly exceeded expectations.

雖然上季我們表示預計要到第三季才能開始出貨。我們能夠在第二季開始出貨。雖然大部分出貨尚未完成，但最初的銷售量已大大超出預期。

We expect that this outperformance will continue through the rest of the year and translate to revenue impact in the third and fourth quarters. We now believe shipments of Dolly to the dollar channel will exceed $10 million in 2024. Building on this strong initial momentum. We are already in discussions with additional customers for 2025 shipments.

我們預計這種優異表現將持續到今年剩餘時間，並轉化為第三季和第四季的營收影響。我們現在相信，到 2024 年，Dolly 向美元通路的出貨量將超過 1,000 萬美元。在此強勁的初始勢頭的基礎上。我們已經在與其他客戶討論 2025 年的出貨事宜。

In our foodservice business, though we experienced a slight slowdown in the end markets this quarter, we continue to gain market share and remain optimistic based on the continued new listings that we have won, that we'll see meaningful growth this year and in 2025.

在我們的餐飲服務業務中，儘管本季終端市場略有放緩，但我們繼續獲得市場份額，並基於我們贏得的持續新上市保持樂觀，我們將在今年和 2025 年看到有意義的成長。

Our e-commerce business continues to be a major growth driver. This quarter e-commerce sales represented 18.9% of revenues compared to 18.1% in the same period last year.

我們的電子商務業務仍然是主要的成長動力。本季電子商務銷售額佔營收的 18.9%，去年同期為 18.1%。

We once again had a very successful Amazon Prime Day with total company sales up 23% over the prior year, this compares favorably with the overall Amazon Prime Day sales growth of 11%.

我們再次舉辦了非常成功的亞馬遜 Prime Day，公司總銷售額比上一年增長了 23%，這與亞馬遜 Prime Day 整體銷售額增長 11% 相比是有利的。

Turning now to our supply chain, while ocean freight costs have been increasing as a result of geo-political conditions and due to vessel and container availability levels. We believe these levels have now stabilized and will remain fixed at a higher base for the foreseeable future.

現在轉向我們的供應鏈，由於地緣政治條件以及船舶和貨櫃的可用性水平，海運成本一直在增加。我們相信這些水準現已穩定，並將在可預見的未來保持在較高的基礎上。

We are managing all input costs across the business and have been successful in decreasing product costs in many areas. This has translated to margin expansion this quarter, despite this ocean freight increase. In Mexico, our plastics manufacturing facility remains on schedule to reach full production capacity this year, we have taken a measured approach to ramping up this facility to ensure we achieve high quality output and build the appropriate product mix being produced in this facility.

我們正在管理整個企業的所有投入成本，並成功地降低了許多領域的產品成本。儘管海運費有所增加，但這已轉化為本季利潤率的擴張。在墨西哥，我們的塑膠製造工廠今年仍按計劃達到全部產能，我們採取了審慎的方法來提高該工廠的產能，以確保我們實現高品質的產出並建立該工廠生產的適當的產品組合。

Additionally, we continue to drive forward on our efforts to have approximately 25% of our spend on goods being sourced outside of China and remain on track to meeting this target. We are focused on expanding our sourcing capability in additional geographies with a primary focus on Southeast Asia and expect to begin shipping out of new locations in the near term.

此外，我們繼續努力，使約 25% 的商品支出從中國境外採購，並將繼續實現這一目標。我們致力於擴大我們在其他地區的採購能力，主要關注東南亞，並預計在短期內開始從新地點發貨。

Our manufacturing partners in the region are working with us to set up new factories outside of China in order to accommodate this expansion and we are already in the process of transferring production from one of our largest SKU's, which represents nearly 10 million unit sales a year to one such facility.

我們在該地區的製造合作夥伴正在與我們合作在中國境外設立新工廠，以適應這一擴張，我們已經開始從我們最大的 SKU 之一轉移生產，這代表著每年近 1000 萬件的銷量到這樣一個設施。

I'd now like to provide some high-level color around our balance sheet, which Larry will discuss in greater detail shortly. Typically, liquidity is most strained during the second quarter as a result of seasonal business trends. However, our continued focus on operating the business efficiently and using disciplined cash management has allowed us to maintain strong levels of liquidity.

我現在想就我們的資產負債表提供一些高層次的信息，拉里將很快對此進行更詳細的討論。通常，由於季節性業務趨勢，第二季的流動性最為緊張。然而，我們持續專注於高效營運業務並採用嚴格的現金管理，使我們能夠維持強勁的流動性水準。

For example, we are paying close attention to challenges facing retailers in this environment and have placed certain customers on credit hold to limit our exposure. While our credit hold has a negative impact on near term sales, we believe this is operationally prudent. We are comfortable with our leverage ratio and pleased with our cash generation levels despite headwinds in the environment.

例如，我們正在密切關注零售商在這種環境下面臨的挑戰，並對某些客戶進行信貸凍結以限制我們的風險敞口。雖然我們的信貸持有對近期銷售產生負面影響，但我們認為這在操作上是謹慎的。儘管環境存在阻力，但我們對槓桿率感到滿意，並對我們的現金產生水準感到滿意。

In the meantime, we continue to view the market as favorable for acquisitions and have an active slate of M&A opportunities in our pipeline. We expect to continue to progress discussions regarding these potential opportunities in the coming months and we'll keep the market updated of all strategic initiatives.

同時，我們繼續認為市場有利於收購，並且我們的管道中擁有大量積極的併購機會。我們預計在未來幾個月內繼續推進有關這些潛在機會的討論，並將向市場通報所有策略舉措的最新情況。

I'd like to briefly touch on the non-cash loss we recorded in the second quarter related to our equity investment in Grupo Vasconia, housewares company in Mexico. In the second quarter the company discontinued the equity method of accounting for this investment, which resulted in a noncash loss of $14.2 million to record the investment even at its fair value.

我想簡單談談我們在第二季度記錄的與我們對墨西哥家居用品公司 Grupo Vasconia 的股權投資相關的非現金損失。第二季度，該公司終止了對該投資的權益法會計處理，導致即使以其公允價值記錄該投資也會產生 1,420 萬美元的非現金損失。

It is important to note that this does not negatively impact our cash flow and is consistent with our view that this stranded asset from investment made in 2007 is not strategic to our company.

值得注意的是，這不會對我們的現金流產生負面影響，並且與我們的觀點一致，即 2007 年投資產生的擱淺資產對我們公司來說不具有戰略意義。

Let me expand further on our financial guidance for the full year of 2024. In our press release this morning, we revised our guidance for net loss as a result of the non-cash loss related to the noncash write-down of $14.2 million on our Grupo Vasconia index. Apart from this adjustment, we continue to expect results for the full year in line with our previously shared expectations for all other metrics.

讓我進一步闡述我們 2024 年全年的財務指引。在今天早上的新聞稿中，我們修訂了淨虧損指引，原因是與 Grupo Vasconia 指數非現金減記 1,420 萬美元相關的非現金損失。除了這項調整之外，我們繼續預計全年業績將與我們先前對所有其他指標的共同預期一致。

We are carefully monitoring the headwinds we saw over the last few months and as we head into the next quarter however, our reiterated outlook, reflects our confidence in our ability to continue executing and delivering results driven by the strategic initiatives we have in place.

我們正在仔細監控過去幾個月所看到的不利因素，然而，當我們進入下一個季度時，我們重申的前景反映了我們對我們在現有戰略舉措的推動下繼續執行和交付成果的能力的信心。

As we look ahead to the remainder of the year, we believe we are well positioned to continue to grow market share and create value as demand rebounds. We have a strong foundation in place, thanks to the significant work completed over the last several years to increase the resiliency of our business model.

展望今年剩餘時間，我們相信我們處於有利地位，可以隨著需求反彈繼續擴大市場份額並創造價值。由於過去幾年為提高我們的業務模式的彈性而完成的大量工作，我們擁有堅實的基礎。

We look forward to keeping you updated on our progress as we continue expanding our leading portfolio of brands, driving innovation and delivering operational excellence.

隨著我們繼續擴大我們的領先品牌組合、推動創新和提供卓越運營，我們期待向您通報我們的最新進展。

With that, I'll now turn the call over to Larry.

這樣，我現在將把電話轉給拉里。

Thanks, Rob. As we reported this morning, the net loss for the second quarter of 2024 was $18.2 million, or $0.85 per diluted share as compared to $6.5 million loss or $0.31 per diluted share in the second quarter of 23. Net loss for the current period included a non-cash loss of $14.2 million related to our investment in Grupo Vasconia. Adjusted net loss was $0.6 million for the second quarter of 2024 or $0.03 per diluted share as compared to $0.3 million or $0.02 per diluted share in 2023.

謝謝，羅布。正如我們今天早上報導的那樣，2024 年第二季度的淨虧損為1820 萬美元，即稀釋後每股虧損0.85 美元，而2023 年第二季度的淨虧損為650 萬美元，即稀釋後每股虧損0.31 美元。本期淨虧損包括與我們對 Grupo Vasconia 投資相關的 1,420 萬美元非現金虧損。2024 年第二季調整後淨虧損為 60 萬美元，即稀釋後每股虧損 0.03 美元，而 2023 年第二季調整後淨虧損為 30 萬美元，即稀釋後每股虧損 0.02 美元。

Income from operations was $1.2 million in the second quarter of 2024 as compared to income of $4.4 million in the 2023 period. Adjusted income from operations for the second quarter of 2024 was $5.6 million compared to $8.4 million in the 2023 period. Adjusted EBITDA for the trailing 12-month period ended June 30, 2024, was $56.6 million.

2024 年第二季的營運收入為 120 萬美元，而 2023 年第二季的營收為 440 萬美元。2024 年第二季調整後營運收入為 560 萬美元，而 2023 年第二季調整後營運收入為 840 萬美元。截至 2024 年 6 月 30 日的過去 12 個月期間的調整後 EBITDA 為 5,660 萬美元。

Adjusted net loss, adjusted income from operations and adjusted EBITDA and non-GAAP financial measures, which are reconciled to our GAAP financial measures in the earnings release. Following comments will for the second quarter of 2024 and 2023, unless stated otherwise.

調整後的淨虧損、調整後的營運收入以及調整後的 EBITDA 和非 GAAP 財務指標，這些指標與我們在收益發布中的 GAAP 財務指標進行了調整。除非另有說明，以下評論適用於 2024 年第二季和 2023 年。

Consolidated sales declined by 3.2%, US segment sales decreased by 3.3% to $130.5 million. As Rob commented, macroeconomic pressures have led to weaken demand across end markets. Within this segment, the decrease occurred in the kitchenware and home solutions categories.

綜合銷售額下降 3.2%，美國部門銷售額下降 3.3%，至 1.305 億美元。正如羅布評論的那樣，宏觀經濟壓力導致終端市場需求疲軟。在該細分市場中，廚具和家庭解決方案類別出現下降。

Kitchenware decline was from kitchen tools and measurement products. Home solutions decline was due to lower hydration products and tailored bath measurement products. Second decreased result was partially offset by sales from new license product brand in the kitchenware and home solution categories and an increase in the tableware category from a new warehouse club program.

廚具的下降主要來自廚房工具和測量產品。家庭解決方案的下降是由於水合產品和客製化沐浴測量產品的減少。第二次下降的業績被廚具和家庭解決方案類別中新許可產品品牌的銷售額以及新倉庫俱樂部計劃中餐具類別的增長部分抵消。

International segment sales were down by 2.6% or $0.2 million or $0.3 million in constant USD11.2 million. As Rob commented, the impact of the UK's economic recession has persisted which has prevented a meaningful recovery and demand. The decrease was due to lower replenishment orders for e-commerce and brick and mortar customers, partially offset by higher sales in Asia.

國際部門銷售額下降 2.6%，即 20 萬美元或 30 萬美元，不變價格為 1,120 萬美元。正如羅布評論的那樣，英國經濟衰退的影響持續存在，阻礙了有意義的復甦和需求。下降的原因是電子商務和實體客戶的補貨訂單減少，但部分被亞洲銷售額的增加所抵消。

Consolidated gross margin increased to 38.5% from 38.2%. Us segment gross margin increased to 38.7% from 38.3%. This improvement was due to favorable product mix. For international gross margin, which decreased to 36.6% from 37.7% was driven by higher mix of distributor sales to Australia.

綜合毛利率從38.2%增加至38.5%。美國分部毛利率從 38.3% 增至 38.7%。這項改進歸功於有利的產品組合。國際毛利率從 37.7% 下降至 36.6%，這是由於向澳洲的經銷商銷售組合增加所致。

US segment distribution expenses as a percentage of goods shipped from its warehouses was 9.5% for 2024 versus 9.7% in 2023. Lower freight ad expenses more than offset the impact of lower shipments despite inflationary pressures, continuous improvements in labor and other expense management and lower inventory levels mitigated the impact.

2024 年美國分部配送費用佔倉庫出貨貨物的百分比為 9.5%，而 2023 年為 9.7%。儘管通膨壓力，但貨運廣告費用的下降足以抵消出貨量下降的影響，勞動力和其他費用管理的持續改進以及庫存水準的降低減輕了影響。

International segment distribution expenses as a percentage of goods shipped from its warehouses was 25.1% for both '24 and '23. As higher occupancy costs were offset by favorable freight rates.

24 年和 23 年，國際部門分銷費用佔從其倉庫發貨的貨物的百分比均為 25.1%。由於較高的佔用成本被有利的運費所抵消。

Consolidated selling, general and administrative expenses increased by 6.7% to $38.3 million. US segment expenses increased by $2 million to $29.4 million. As a percentage of net sales, expenses increased to 22.5% from 20.3%. The increase was driven by inflationary factors, both of which related to employee costs, the largest component of SG&A. Other increases included expenses related to start-up of manufacturing operations in Mexico. This was partially offset by a decrease in the provision for doubtful accounts.

綜合銷售、一般及管理費用成長 6.7%，達到 3,830 萬美元。我們部門支出增加 200 萬美元，達到 2,940 萬美元。費用佔淨銷售額的百分比從 20.3% 增加到 22.5%。這一增長是由通貨膨脹因素推動的，這兩者都與員工成本有關，而員工成本是銷售管理費用的最大組成部分。其他成長包括與在墨西哥啟動製造業務相關的費用。這被呆帳撥備減少部分抵銷。

International SG&A expenses decreased $0.2 million to $3.8 million and as a percentage of net sales decreased to 33.9% from 35.1%. The decrease was driven by lower advertising and commission expenses, partially offset by higher employee expenses. And unallocated corporate expenses increased by $0.6 million to $5.1 million due to higher incentive compensation and professional fees.

國際 SG&A 費用減少 20 萬美元至 380 萬美元，佔淨銷售額的百分比從 35.1% 下降至 33.9%。下降的原因是廣告和佣金費用減少，但部分被員工費用增加所抵銷。由於激勵薪酬和專業費用增加，未分配的公司費用增加了 60 萬美元，達到 510 萬美元。

Our interest expense, excluding mark-to-market adjustment for swaps, decreased by $0.3 million due to lower average borrowings, partially offset by higher interest rates on our variable rate debt.

由於平均借款下降，我們的利息支出（不包括掉期的按市價調整）減少了 30 萬美元，部分被我們的可變利率債務利率上升所抵消。

As Rob discussed, with respect to Vasconia due to a reorganization resolution by Vasconia and the Mexico bankruptcy law, a company which we have a 24.7% investment, we determined that we no longer had significant influence over our investment. This resulted in the discontinuance of the use of the equity method of accounting.

正如Rob所討論的，對於Vasconia，由於Vasconia的重組決議和墨西哥破產法，我們擁有24.7%投資的公司，我們確定我們不再對我們的投資產生重大影響。這導致不再使用權益會計法。

Upon discontinuation, $14.2 million of related foreign currency translation losses previously reported in accumulated other comprehensive loss statement were reclassified to the investment balance and then written off. This write-up was noncash and had no effect on our ongoing operations or business strategy.

終止後，先前在累積其他綜合損失表中報告的 1,420 萬美元相關外幣折算損失被重新分類至投資餘額，然後予以核銷。該增記不是現金，對我們的持續營運或業務策略沒有影響。

For income taxes in the current period, the effective income tax rate differs from the federal statutory rate, primarily due to equity-based awards with a book expense exceed the tax deduction and foreign losses for which no benefit was recognized. The effective tax rate for the prior quarter, differs from federal statutory rate, primarily due to state local tax expense, the impact of nondeductible expenses and foreign losses for which no tax benefit is recognized.

對於當期所得稅，實際所得稅稅率與聯邦法定稅率不同，主要是由於帳面費用超過稅收減免的股權獎勵以及未確認收益的海外損失。上一季的有效稅率與聯邦法定稅率不同，主要是由於州地方稅費用、不可扣除費用的影響以及未確認稅收優惠的國外損失。

Turning to our balance sheet, it continues to be quite strong. As of June 30, 2024, our liquidity was approximately $119 million, which included cash plus availability under our credit facility and receivable purchase agreements. Since year end 2023, we further de-levered our balance sheet, reducing our net debt by$70 million. And as of June 30th of this year, our net debt to adjusted EBITDA leverage ratio was 3.3 times.

談到我們的資產負債表，它仍然相當強勁。截至 2024 年 6 月 30 日，我們的流動資金約為 1.19 億美元，其中包括現金加上信貸安排和應收帳款購買協議下的可用資金。自 2023 年底以來，我們進一步去槓桿化資產負債表，淨債務減少了 7,000 萬美元。截至今年6月30日，我們的淨負債與調整後EBITDA槓桿率為3.3倍。

As provided in the release, we are reiterating our financial guidance for the full year 2024, except for the non-cash loss of $14.2 million related to the investment in Vasconia. 2024 financial guidance is as follows. Net sales of $690 million to $730 million, adjusted income from operations of $49 million to $54 million, adjusted net income of $15 million to $17 million and adjusted EBITDA of $57.5 million to 62.5 million.

如新聞稿所述，我們重申 2024 年全年的財務指引，但與 Vasconia 投資相關的 1,420 萬美元非現金損失除外。 2024 年財務指引如下。淨銷售額為 6.9 億美元至 7.3 億美元，調整後營運收入為 4,900 萬美元至 5,400 萬美元，調整後淨利為 1,500 萬美元至 1,700 萬美元，調整後 EBITDA 為 5,750 萬美元至 6,250 萬美元。

This concludes our prepared comments. Operator, please open the line for questions.

我們準備好的評論到此結束。接線員，請開通提問線。

(Operator Instructions) Anthony Lebiedzinski, Sidoti.

（操作員說明）Anthony Lebiedzinski，Sidoti。

Good morning, gentlemen, and thank you for taking the questions. So Robbie, you talked about the sluggish demand in the second quarter, also seasonal timing of shipments. I just wondering if you guys could provide any more details as regards to that as whether or not the or more of the sales decline was because of just market sluggishness or just help us out maybe just understand as far as how the quarter progressed?

早安，先生們，感謝您提出問題。羅比，您談到了第二季的需求疲軟以及季節性的出貨時間。我只是想知道你們是否可以提供更多有關銷售下降或更多下降是否只是由於市場低迷所致的詳細信息，或者只是幫助我們了解本季度的進展情況？

Yeah. Good morning, Anthony. As we talked about in our remarks, we had -- saw a lot of this coming when we issued the full year guidance. So we -- directionally, we were not surprised, the end market demand was a little greater than we thought, offset by some new initiatives, particularly Dolly and success in growing our e-commerce sales offset that.

是的。早安，安東尼。正如我們在演講中談到的，當我們發布全年指導時，我們已經看到了很多這樣的情況。因此，從方向上看，我們並不感到驚訝，終端市場的需求比我們想像的要大一些，但被一些新舉措所抵消，特別是 Dolly 以及我們電子商務銷售成長的成功抵消了這一點。

And our market shares, as we talked about, overall increased which again offset the greater market direction. Aside from that, and as we had expected, some timing, which particularly applies to clubs which are sizable orders, on a year over year basis will be second half, whereas we had more in the first half of the year last year in that channel and that accounts for the remainder of the decline in the second quarter (inaudible)

正如我們所說，我們的市場份額總體增加，這再次抵消了更大的市場方向。除此之外，正如我們所預期的那樣，一些時間安排（特別適用於訂單規模較大的俱樂部）將在下半年進行，而去年上半年我們在該渠道中有更多的時間安排這就是第二季度剩餘下降的原因（聽不清楚）

Okay. Got it. That's very helpful. And in terms of Dolly Parton products, I mean, did I missed it? Did you guys say how much of that was in the second quarter or was there anything material to call out?

好的。知道了。這非常有幫助。就多莉帕頓產品而言，我的意思是，我錯過了嗎？你們有沒有說過第二季有多少內容，或是有什麼值得指出的嗎？

We didn't expect it to be that much, but we ended up shipping $4 million in the second quarter.

我們沒想到會那麼多，但最終我們第二季的出貨量達到了 400 萬美元。

Yeah. Sure. Okay. So for the full year, I think you said you expect to exceed $10 million for Dolly Parton product?

是的。當然。好的。那麼對於全年來說，我想您說過您預計 Dolly Parton 產品的銷售額將超過 1000 萬美元？

Correct. Into the dollar channel, we may have some sales beyond the dollar channel that will hit '24, not certain yet whether that will hit '24 and ;'25 based upon availability since it's exceeded our expectations, getting availability of products in time.

正確的。進入美元管道，我們可能會在美元管道之外進行一些銷售，這些銷售將達到“24”，尚不確定是否會達到“24”和“25”，具體取決於可用性，因為它超出了我們的預期，及時獲得了產品的可用性。

Yeah, sure good. And then, how would you characterize your own inventories and inventory at retail? One of your competitors last month came out with lower than expected results. And they had some own internal issues but they had talked about just seeing kind of a stretched consumer out there. So what are your thoughts there as far as inventory at retailers and retailers willingness to replenish orders? What are your thoughts?

是的，當然好。然後，您如何描述您自己的庫存和零售庫存？上個月，您的一位競爭對手的業績低於預期。他們有一些自己的內部問題，但他們談到只是看到那裡的消費者有點緊張。那麼，對於零售商的庫存以及零售商補充訂單的意願，您有何看法？你有什麼想法？

Sure. Well, the first part of your question in terms of our own inventories, we've been very focused on the inventories for years now and our inventory levels are appropriate and we react very quickly with any changes in volumes as well as on whether it's SKU level or other basis such as with the outperformance of Dolly we reacted very quickly to get in more inventory, right? So we think our inventory levels are appropriate and streamlined.

當然。嗯，你的問題的第一部分是關於我們自己的庫存，多年來我們一直非常關注庫存，我們的庫存水平是合適的，我們對數量的任何變化以及是否是 SKU 做出快速反應水平或其他基礎，例如多莉的出色表現，我們很快就做出了反應，獲得了更多庫存，對嗎？因此，我們認為我們的庫存水準是適當且精簡的。

In UK we've needed to -- and Europe, our hub in the Netherlands, we needed to increase those levels as a result of the fact that shipments are now coming around the Cape and not through the Canal and the Red Sea and that adds a couple of weeks, so you need to offset that by counting higher levels of inventories not significant but definitely higher levels. So we've increased there.

在英國，我們需要——以及歐洲，我們在荷蘭的樞紐，我們需要提高這些水平，因為貨物現在是繞過好望角而不是通過運河和紅海，這補充了幾週，所以你需要通過計算較高水平的庫存來抵消這一點，雖然不顯著，但絕對較高水準。所以我們在那裡增加了。

In terms of the bulk of your question at retail, in more challenging economic times, particularly the larger and the more sophisticated retailers, lower their investment and want more replenishment from their customers. A bigger player like us, it actually benefits our market position but there has been definitely a shift and we've seen that for quite some time and that always gives a leading indicator of where we see the market is going. So, there's definitely some pullback in levels at most of our customers. So they are leaner on their inventory levels than they have been in better times.

就您在零售業提出的大部分問題而言，在更具挑戰性的經濟時期，尤其是規模更大、更成熟的零售商，會降低投資並希望從客戶那裡獲得更多補貨。像我們這樣的更大的參與者，它實際上有利於我們的市場地位，但肯定已經發生了轉變，我們已經看到這種轉變很長一段時間了，這總是為我們看到市場走向提供了領先指標。因此，我們大多數客戶的水平肯定會有所回落。因此，與經濟繁榮時期相比，他們的庫存水準更加精簡。

Got you. Okay. And then last question for me. So as we look to update our models for Q3 and Q4, is there anything that we should be aware of in terms of just timing of shipments other than what you already talked about or is there anything timing of cost that we should be aware of?

明白你了。好的。然後是我的最後一個問題。因此，當我們希望更新第三季和第四季的模型時，除了您已經討論過的內容之外，在發貨時間方面還有什麼我們應該注意的嗎？

No. I mean nothing that we haven't stated. The big cost increase besides the overall inflation, I think the big cost increase has been ocean freight which we have an experience as we mentioned, it's stabilized. We don't expect it to change from where it is. So on a year-over-year basis, ocean freight is up but stabilized at a level less than our expectations, which is good. So we factored it all in and we don't expect it to change much.

不。我的意思是我們沒有說過。除了整體通膨之外，成本的大幅增加，我認為成本大幅增加的是海運，正如我們所提到的，我們有過經驗，它已經穩定下來。我們預計它不會改變現狀。因此，與去年同期相比，海運費有所上升，但穩定在低於我們預期的水平，這是好事。因此，我們將所有因素都考慮在內，並且預計不會發生太大變化。

And the big driving factor is in geopolitical conditions, a big driving factor are the ocean carriers and them taking a lot of tonnage off-line and therefore, supply and demand it created an increase in the costs that they were able to charge. We've offset that, particularly, on a cost of goods sold basis by driving the cost of what we're paying for our goods.

最大的驅動因素是地緣政治條件，一個很大的驅動因素是海運承運人，他們將大量噸位下線，因此，供需關係導致他們能夠收取的成本增加。我們已經透過提高我們為商品支付的成本來抵消這一點，特別是在銷售商品成本的基礎上。

So there should be no change beyond our expectations and from a timing perspective, there is some upside if we can get more product for demand on Dolly, but basically everything.

因此，應該不會出現超出我們預期的變化，從時間角度來看，如果我們能夠為多莉的需求提供更多產品，那麼會有一些好處，但基本上就是一切。

Okay. Well, thank you very much and best of luck.

好的。嗯，非常感謝你，祝你好運。

Thank you Anthony.

謝謝你安東尼。

Linda Bolton-Weiser, D.A. Davidson.

琳達·博爾頓·韋瑟，D.A.戴維森。

Yes. Hello, hi. So I was just curious if you could give us an update on the S'well acquisition sort of a State of the Union on how that brand is doing since you acquired it?

是的。你好，你好。所以我很好奇您能否向我們介紹一下 S'well 收購的最新情況（類似於國情咨文），介紹該品牌自您收購以來的表現如何？

As we talked about at the time of the acquisition, the biggest known challenge centered around the stuffed -- the overseas channels as well as e-commerce and particularly, Amazon. So we knew there'd be a lag. That's all gone through and therefore, it's picked up as a result.

正如我們在收購時談到的，已知的最大挑戰集中在海外通路以及電子商務，尤其是亞馬遜。所以我們知道會有延遲。這一切都已經過去了，因此，它被拾取了。

The other thing that has been successful is -- and if you go on our website and social media, you'll notice there's been a tremendous amount of new product introduction, because we inherited no pipeline basically. So that's created newness, which is driving new opportunities, particularly in the e-commerce channel where when you're just selling the same thing, there comes a decline in your demand. But now, that we've replenished the offering we've seen both in swell.com, Amazon and other channels a nice uptick.

另一件成功的事情是——如果你訪問我們的網站和社交媒體，你會注意到有大量的新產品推出，因為我們基本上沒有繼承任何管道。因此，這創造了新鮮感，從而帶來新的機會，特別是在電子商務管道中，當你只銷售同樣的東西時，你的需求就會下降。但現在，我們已經補充了產品，我們在 swell.com、亞馬遜和其他管道都看到了不錯的成長。

One thing we did not anticipate when we bought the business is that we were very interested in, we find the promotional direct corporate channel that's S'well had to be very attractive and we got a lot of talent with that. The talent has exceeded our expectations, but the relationships that they were selling through needed to be completely redone.

當我們購買該業務時，我們沒有預料到的一件事是我們非常感興趣，我們發現 S'well 的促銷直接企業管道必須非常有吸引力，而且我們在這方面擁有很多人才。人才超出了我們的預期，但他們銷售的關係需要完全重做。

That's why we took a charge last year and that's this year we're doing much better and we've seen a tremendous increase and that helped actually in the second quarter as we've solved the issues that we faced last year and did that in a manner that exceeded our expectations.

這就是為什麼我們去年採取了收費，今年我們做得更好，我們看到了巨大的增長，這實際上在第二季度有所幫助，因為我們解決了去年面臨的問題，並在超出我們預期的方式。

So S'well is doing well we need to -- with that division the whole BUILT and S'well division is one division. There has been -- with the tremendous growth of Stanley the category has done well. But besides Stanley most people have not. There's been a decline in share. So we've been winning back some share and that should benefit us on a go-forward basis.

因此，S'well 做得很好，我們需要——有了這個部門，整個 BUILT 和 S'well 部門就是一個部門。隨著史丹利的巨大增長，該類別表現出色。但除了史丹利之外，大多數人都沒有。份額有所下降。因此，我們一直在贏回一些份額，這應該會讓我們在未來的基礎上受益。

Okay. And then we get the Nielsen data the POS data which covers just the US and it doesn't include e-commerce. So it's only tracked channels. So it only covers some of your sales. But nevertheless, it shows a really bad trend like really big year over year declines. So this would be a Walmart and Target, other channels. Is there any way you can explain to us why the declines in the Nielsen data look so much bigger than the decline in revenue you actually report?

好的。然後我們得到尼爾森數據，POS 數據僅涵蓋美國，不包括電子商務。所以它只是跟踪頻道。所以它只涵蓋您的部分銷售額。但儘管如此，它顯示出一種非常糟糕的趨勢，例如同比大幅下降。所以這將是沃爾瑪和塔吉特以及其他管道。您是否可以向我們解釋為什麼尼爾森數據的下降幅度看起來比您實際報告的收入下降幅度大得多？

So again it's well-covered. We purchase a lot of data and it's all Circana data right so NPD IRI. And that's -- it covers a lot of the universe. There is to your point less data overseas. We do have some but not as much. So part of it is what channels. So like we had growth in the dollar channel. I'm not sure if that's captured in Nielsen right which explains part of what you're talking about.

所以它又被很好地覆蓋了。我們購買了大量數據，而且都是 Circana 數據，所以 NPD IRI。那就是——它覆蓋了宇宙的很大一部分。您認為海外數據較少。我們確實有一些，但沒有那麼多。所以一部分是頻道。就像我們在美元通路有所成長一樣。我不確定尼爾森是否正確地理解了這一點，這解釋了您所談論的部分內容。

In Walmart so if we look at the data that we purchase and we compare that on a 12 month versus 12 month basis this year versus last year not every category but by far the majority of our categories we've increased share. In Walmart and Target, we've gained in a lot of areas but we did as talked about we lost some share in the KitchenAid line with those retailers which we saw an impact on a year over year basis in the second quarter along, just three months and that might be skewing what you see versus what we have actually shipped.

在沃爾瑪，如果我們查看我們購買的數據，並將今年 12 個月與去年 12 個月的數據進行比較，雖然不是所有類別，但到目前為止我們的大多數類別的份額都增加了。在沃爾瑪和塔吉特，我們在許多領域都取得了進展，但正如我們所說的那樣，我們在KitchenAid 系列中與那些零售商失去了一些份額，我們看到第二季度同比受到的影響只有三幾個月，這可能會扭曲您看到的內容與我們實際發貨的內容。

Okay. And then given -- I guess, we're expecting around $6 million of shipments of the Dolly Parton, at least maybe more in the second half. I would think more of that would come in the third quarter than in the fourth quarter. So is it fair to say your sales growth and year over year change in Q3 will be maybe better than in Q4. Is that the right thing for me to assume.

好的。然後，我猜，我們預計 Dolly Parton 的出貨量約為 600 萬美元，至少下半年可能會更多。我認為第三季會比第四季發生更多的事情。因此，可以公平地說，第三季的銷售成長和年比變化可能會好於第四季。我的假設正確嗎？

It's a good question. I don't have the answer. I can say that we will exceed the $10 million, right? So you can expect more than the $6 million. And we're not sure how that all falls in the third quarter versus fourth quarter yet. We're still working on that based upon again timing of the shipments and the like most of it is replenishment. So the majority of that comes through our warehouses not directed for, right. So it's working with the customers and when it ships. So that's not necessarily the case.

這是一個好問題。我沒有答案。我可以說我們會超過1000萬美元，對嗎？所以你可以期待超過 600 萬美元。我們還不確定第三季與第四季的情況如何。我們仍在根據發貨時間和大部分補貨等情況進行研究。所以大部分都是透過我們的倉庫來的，不是針對的，對吧。因此，它在發貨時與客戶合作。所以情況不一定如此。

Okay. And then my last question has to do with when you talk about a little bit of a change in your marketing focus in Europe to go a little bit more for the larger retailer accounts instead of the smaller ones. I'm wondering if that changes the margin profile of the business there. Do you expect similar margins or lower or higher as you kind of change that channel strategy? Thanks.

好的。然後，我的最後一個問題與您談論歐洲行銷重點的一點變化有關，即更多地關注較大的零售商帳戶，而不是較小的零售商帳戶。我想知道這是否會改變那裡業務的利潤狀況。當您改變通路策略時，您是否期望利潤率相似或更低或更高？謝謝。

Yeah. No good question. So just to explain the core businesses that Lifetime had acquired their core customers were independent stores and what's called cookshops particularly in the UK. They're in big decline. So we've been shifting to the larger accounts like Dunelm and Next who are doing well. And the growth in those have been offsetting the general growth or a decline in the homewares market in there.

是的。沒有什麼好問題。因此，為了解釋 Lifetime 獲得的核心業務，他們的核心客戶是獨立商店和所謂的烹飪店，特別是在英國。他們正在大幅下滑。因此，我們一直在轉向像 Dunelm 和 Next 這樣表現良好的較大客戶。這些增長抵消了那裡家居用品市場的整體成長或下降。

In general, the answer definitely is, yes, that the margins that you're selling to those customers would be lower than you're getting in a cook shop. Though the caveat is the reason why we're not necessarily experiencing that and what you're seeing flowing through the numbers is we've cleaned up a lot of business and improved the gross margin in what we sell in terms of what we're selling product-wise.

一般來說，答案肯定是肯定的，您向這些客戶銷售的利潤將低於您在烹飪店獲得的利潤。儘管需要注意的是，我們不一定會遇到這種情況，而且您在數字中看到的是，我們已經清理了很多業務，並提高了我們所銷售產品的毛利率。

So, that's picking up and offsetting what you're seeing otherwise. If you were just substituting one for the other, you would have seen a bigger decline in margin. Is that makes sense Linda?

所以，這就是吸收並抵消你所看到的其他情況。如果你只是用其中一種取代另一種，你會看到利潤率出現更大的下降。琳達，這有道理嗎？

Yeah. Thank you. Thanks very much and good luck with everything.

是的。謝謝。非常感謝，祝一切順利。

Thank you.

謝謝。

Brian McNamara, Canaccord Genuity.

麥克納馬拉 (Brian McNamara)，Canaccord Genuity。

Morning, guys. Thanks for taking the questions.

早安，夥計們。感謝您提出問題。

Thanks Brian for being here.

感謝布萊恩來到這裡。

So sales growth has proven a bit elusive over the last few years kind of post-COVID and your H2 guide, I think, implies a plus-8% kind of run rate. What gives you confidence in that kind of hockey stick recovery, particularly with $4 million of Dolly Parton product maybe being pulled ahead as we haven't seen kind of growth like that since 2021?

因此，事實證明，在過去幾年的新冠疫情之後，銷售成長有點難以捉摸，我認為，你們的 H2 指南意味著 8% 的運行率。是什麼讓您對這種曲棍球棒復甦充滿信心，尤其是價值 400 萬美元的 Dolly Parton 產品可能會提前推出，因為我們自 2021 年以來從未見過這樣的增長？

So two things that are driving that, I guess, three things. One is just seasonal timing on a year over year basis, right? So, it's -- some of it is what shipped first half 2023 versus second half 2023 and the cadence of what's shipping this year. So, that's driving some of the growth.

我猜有兩件事推動了這三件事。一個只是逐年的季節性時間，對嗎？所以，其中一些是 2023 年上半年與 2023 年下半年的出貨量以及今年出貨的節奏。因此，這推動了部分成長。

Some of it is newness such as Dolly, which is all incremental business. A little bit is we changed our a lot of what we were doing online, which we were doing fine in terms of our e-commerce sales. And we've already seen tremendous outperformance, and that is should continue, and we have a high degree of confidence in executing on that, which will drive that.

其中一些是新事物，例如Dolly，這都是增量業務。一點是我們改變了我們在網路上所做的很多事情，我們在電子商務銷售方面做得很好。我們已經看到了巨大的優異表現，而且這種情況應該會持續下去，我們對執行這一點充滿信心，這將推動這一點。

And the other is just as we continue to roll out, while the markets that were particularly in Europe and the continent and the UK have -- we don't expect that to pick up. We've gained new listings in Leclerc, Carrefour, Lidl. In Australia and New Zealand, we used to -- through the way we went to market, we were basically selling only one brand to one customer.

另一個是我們繼續推出，而尤其是歐洲、歐洲大陸和英國的市場——我們預計這種情況不會回升。我們在 Leclerc、家樂福、Lidl 獲得了新的房源。在澳洲和紐西蘭，我們過去在進入市場的過程中基本上只向一位客戶銷售一種品牌。

Now granted in Australia, there's one major retailer, and that's who being sold through and they're very big, but now we're selling to many people and to that one major retail, we're selling many products and many brands. So, that's all just rolling through and will drive incremental growth versus prior year. So, we're not expecting a market pickup to drive this.

現在在澳大利亞，有一個主要的零售商，這就是透過他們銷售的，他們非常大，但現在我們向很多人和那個主要的零售商銷售，我們正在銷售許多產品和許多品牌。因此，這一切都只是滾動，並將推動與去年相比的增量成長。因此，我們預期市場回暖不會推動這一趨勢。

Okay. What's your view on innovation in light of today's consumer expectations for products that kind of perpetually keeps increasing? Are you guys investing more in R&D to kind of propel sustainable growth?

好的。鑑於當今消費者對產品的期望不斷提高，您對創新有何看法？你們是否會在研發方面投入更多資金以推動永續成長？

Without a doubt and actually one of the things that I didn't really talk about that is driving substantial growth and will this year based upon what we have in firm orders is provision. We introduced for Farberware called Build-A-Board. And it's been unbelievably successful will be the single -- we expect it, and we add up all the numbers at the year, the single biggest launch that Lifetime has ever made and it's all incremental product and incremental business, obviously, to existing customers. It's all US, we're going to look to expand that internationally, but at this point, it's all US.

毫無疑問，實際上我沒有真正談論的推動大幅增長的事情之一就是供應，而今年將基於我們的確定訂單。我們為 Farberware 推出了名為 Build-A-Board 的產品。它取得了令人難以置信的成功——我們期待它，我們將今年的所有數字加起來，這是Lifetime 有史以來推出的最大的單曲，顯然，這都是增量產品和增量業務，顯然是針對現有客戶的。這都是美國的，我們將尋求在國際上擴展，但目前，這都是美國的。

All right. Then just one more. International just continues to be kind of a tough slog there. I'm wondering if it still makes sense to be there despite your strong internal efforts to restructure the business, you've made a lot of effort there. It's a $55 million kind of annual run rate business despite these new listings that you're talking about. Does it require too much management focus just given size relative to the total business?

好的。然後再來一張。國際化仍然是一個艱難的過程。我想知道儘管你們內部為重組業務付出了巨大的努力，但在那裡仍然有意義嗎？儘管你正在談論這些新上市的公司，但它的年營業額仍高達 5,500 萬美元。考慮到相對於整個業務的規模，是否需要過多的管理關注？

No. Management focus is not the issue there. It is not draining management resources. That is not the problem. We do recognize that we need to show progress there and take action accordingly based upon how it rolls out.

不。管理重點不是那裡的問題。它不會耗盡管理資源。這不是問題所在。我們確實認識到，我們需要在這方面展示進展，並根據進展採取相應行動。

Okay. Great. Thanks guys. Appreciate the color.

好的。偉大的。謝謝你們。欣賞顏色。

Thank you, Brian.

謝謝你，布萊恩。

(Operator Instructions)

（操作員說明）

There are no further questions. I will now turn the call over to Mr. Rob Kay for the closing remarks. Please go ahead.

沒有其他問題了。現在我將把電話轉給 Rob Kay 先生做總結發言。請繼續。

Thank you, Angela, and thank you, everyone, for listening to our call today and for participating in this and your interest in Lifetime Brands. We hope that we were able to answer your questions on the second quarter and for the full year, and we look forward to further discussions with everyone in the future. Have a good day.

謝謝安吉拉，謝謝大家今天收聽我們的電話並參與本次活動以及您對 Lifetime Brands 的興趣。我們希望能夠回答大家關於第二季和全年的問題，也期待未來能與大家進一步的討論。祝你有美好的一天。

That concludes today's call. Thank you all for joining. You may now disconnect.

今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。