Levi Strauss & Co (LEVI) 2022 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. Second Quarter Earnings Conference Call for the period ending May 29, 2022. (Operator Instructions) The conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the Internet, and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com.

女士們，先生們，美好的一天，歡迎參加截至 2022 年 5 月 29 日期間的 Levi Strauss & Co. 第二季度收益電話會議。（操作員說明）電話會議正在錄製中，可能無法全部或部分複制未經公司書面許可。本次電話會議正在互聯網上播出，四分之一的時間可以在公司網站 levistrauss.com 上觀看網絡廣播的重播。

I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.

我現在想把電話轉給 Levi Strauss & Co. 投資者關係副總裁 Aida Orphan。

Thank you for joining us on the call today to discuss the results for our second fiscal quarter of 2022. Joining me on today's call are Chip Bergh, President and CEO of Levi Strauss; and Harmit Singh, our CFO. We have posted complete Q2 financial results in our earnings release on the IR section of our website, investors.levistrauss.com. The link to the webcast of today's conference call can also be found on our site.

感謝您今天加入我們的電話會議，討論我們 2022 年第二財季的業績。與我一起參加今天電話會議的還有 Levi Strauss 總裁兼首席執行官 Chip Bergh；和我們的首席財務官 Harmit Singh。我們已在我們網站investors.levistrauss.com 的投資者關係部分的收益發布中發布了完整的第二季度財務業績。今天電話會議的網絡直播鏈接也可以在我們的網站上找到。

We'd like to remind everyone we will be making forward-looking statements on this call, which involve risks and uncertainties. Actual results could differ materially from those contemplated by our forward-looking statements. Please review our filings with the SEC, in particular, the Risk Factors section of the quarterly report on Form 10-Q that we filed today for the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today and we assume no obligation to update any of these statements.

我們想提醒大家，我們將在此次電話會議上做出前瞻性陳述，其中涉及風險和不確定性。實際結果可能與我們的前瞻性陳述所設想的結果大不相同。請查看我們向 SEC 提交的文件，特別是我們今天提交的 10-Q 表格季度報告的風險因素部分，以了解可能導致我們的結果不同的因素。另請注意，本次電話會議中的前瞻性陳述基於我們今天可獲得的信息，我們不承擔更新任何這些陳述的義務。

During this call, we will discuss certain non-GAAP financial measures. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call in its entirety is being webcast on our IR website and a replay of this call will be available on the website shortly. Today's call is scheduled for 1 hour, so please limit yourself to one question at a time to give others the opportunity to have their questions addressed.

在本次電話會議中，我們將討論某些非公認會計準則財務措施。這些非 GAAP 措施無意替代我們的 GAAP 結果。最後，本次電話會議的全部內容正在我們的 IR 網站上進行網絡直播，很快將在網站上播放本次電話會議的重播。今天的電話會議時間為 1 小時，因此請一次只回答一個問題，讓其他人有機會解決他們的問題。

And now I'd like to turn the call over to Chip.

現在我想把電話轉給Chip。

Good afternoon, and thanks for joining us today. It's been just over a month since I saw many of you at our Investor Day in New York, where we laid down our plans to accelerate profitable growth over the next 5 years. The team is off to a strong start in executing the strategic initiatives that will deliver those plans and you can see that clearly in the results we reported today.

下午好，感謝您今天加入我們。距離我在紐約的投資者日見到你們中的許多人已經過去了一個多月，在那裡我們制定了在未來 5 年加速盈利增長的計劃。該團隊在執行將交付這些計劃的戰略舉措方面取得了良好的開端，您可以在我們今天報告的結果中清楚地看到這一點。

Revenue in the second quarter grew 20% on a constant currency basis and 15% on a reported basis to $1.5 billion, reflecting strong consumer demand across our business and around the world. We also increased profitability, expanding adjusted EBIT margin 90 basis points to a record 9.9% for the second quarter, which drove adjusted EBIT growth of 27% and adjusted diluted earnings per share growth of 26%.

第二季度收入按固定匯率計算增長 20%，按報告計算增長 15%，達到 15 億美元，反映了我們業務和全球消費者的強勁需求。我們還提高了盈利能力，將第二季度調整後的息稅前利潤率擴大了 90 個基點，達到創紀錄的 9.9%，這推動了調整後的息稅前利潤增長 27%，調整後的攤薄後每股收益增長了 26%。

Combined with our strong brands, our relentless focus on our strategic priorities, being brand-led, DTC first and diversifying the portfolio has delivered strong results, even with continued macroeconomic uncertainty and persistent inflationary pressures. The momentum we are driving today reinforces my conviction in the potential of our strategy and the execution abilities of our team, leaving us firmly on track to deliver on our long-term commitments.

結合我們強大的品牌，我們堅持不懈地專注於我們的戰略重點，以品牌為主導、DTC 優先和多樣化的投資組合，即使在持續的宏觀經濟不確定性和持續的通脹壓力的情況下，也取得了強勁的成果。我們今天推動的勢頭增強了我對我們戰略潛力和團隊執行能力的信念，使我們堅定地走上實現長期承諾的軌道。

There are several notable dynamics that underscore our performance this quarter for which my and Harmit's comments will reference revenue constant currency comparisons to 2021 unless we indicate otherwise. Let me start with our first priority, being brand-led. The Levi's brand is stronger than it has ever been and the demand is stronger than it has been in my career here at LS&Co. Levi's is the #1 jeans brand in the world and has strengthened its standing over the past year, driving [the most] share growth amongst the world's top jeans brands, with brand awareness remaining well above the competition across most markets.

有幾個值得注意的動態強調了我們本季度的表現，除非我們另有說明，否則我和 Harmit 的評論將參考與 2021 年的收入不變貨幣比較。讓我從我們的首要任務開始，以品牌為主導。 Levi's 品牌比以往任何時候都更強大，需求也比我在 LS&Co 的職業生涯更強勁。 Levi's 是全球排名第一的牛仔褲品牌，並在過去一年中鞏固了其地位，推動了世界頂級牛仔褲品牌中[最大] 的份額增長，其品牌知名度仍遠高於大多數市場的競爭對手。

We've been moving with agility to capitalize on global casualization trends, fueling strong growth for Levi's while also driving strong underlying category growth that continues to outpace apparel. This performance was supported by our focused efforts to leverage our leadership position with a strong pipeline of innovation.

我們一直在靈活地利用全球休閒化趨勢，推動李維斯的強勁增長，同時推動強勁的潛在類別增長，繼續超過服裝。這一業績得到了我們通過強大的創新渠道利用我們的領導地位所做的集中努力的支持。

This past quarter, we dug into our archives, releasing the Levi's Fresh collection, which was inspired by a product collection from the 1970s, featuring a range of sustainably-dyed pieces for men and women, including 501 jeans, sweats, accessories and more at premium price points. The innovative collection saw particular success with women's and tops in addition to younger consumers with whom we are gaining share and seeing record engagement on our industry-leading TikTok.

上個季度，我們挖掘了我們的檔案，發布了 Levi's Fresh 系列，該系列的靈感來自 1970 年代的產品系列，其中包括一系列可持續染色的男女單品，包括 501 牛仔褲、運動衫、配飾等溢價的價格點。除了年輕消費者，我們的創新系列在女裝和上衣中取得了特別成功，我們在年輕消費者中獲得了份額，並在我們行業領先的 TikTok 上看到了創紀錄的參與度。

Overall, the Levi's brand grew 20%, with our top 5 markets collectively growing at an even faster rate. Levi's bottoms revenue was up double digits across both men's and women's versus last year and prepandemic Q2 2019 levels. And nearly all Levi's fits across genders contributed to growth globally, led by strength in looser fits. The 501 family of products also continued to show strong growth, up 40% across men's and women's, highlighting the momentum of the most iconic fit in our line.

總體而言，Levi's 品牌增長了 20%，我們的前 5 個市場共同以更快的速度增長。與去年和 2019 年第二季度大流行前的水平相比，李維斯男裝和女裝的底部收入均增長了兩位數。幾乎所有的 Levi's 跨性別合身都為全球增長做出了貢獻，這主要得益於寬鬆合身的力量。 501 系列產品也繼續呈現強勁增長勢頭，男裝和女裝均增長 40%，彰顯了我們系列中最具標誌性的合身款。

Turning to our second strategic priority, DTC first. Our direct-to-consumer business continues to thrive, allowing us to deepen our connection with consumers while showcasing the fullest expression of our brands. This quarter, total DTC net revenue increased 22%, with growth driven by our company-operated stores. Strength in our global brick-and-mortar business was driven by both mainline and outlet stores across geographic segments as a result of increased foot traffic and store expansion as well as higher unit volumes and AURs.

轉向我們的第二個戰略重點，首先是 DTC。我們的直接面向消費者的業務繼續蓬勃發展，使我們能夠加深與消費者的聯繫，同時展示我們品牌的最全面表達。本季度，DTC 總淨收入增長 22%，增長由我們公司經營的商店推動。由於客流量增加和門店擴張，以及更高的單位銷量和 AUR，我們的全球實體業務的實力受到跨地理區域的主線和直銷店的推動。

During the quarter, we also benefited from a return of tourist traffic in many of our downtown locations, propelling growth in our flagship stores in key cities, including San Francisco, New York, Paris and London. Our latest generation of new stores continue to perform against our expectations, reflecting the market potential that we have yet to unlock. The success of these newer stores reinforces our conviction in reaching more than 1,500 company-operated stores by 2027.

在本季度，我們還受益於我們許多市中心地點的遊客流量回升，推動了我們在舊金山、紐約、巴黎和倫敦等主要城市的旗艦店的增長。我們最新一代新店的表現繼續超出我們的預期，反映出我們尚未釋放的市場潛力。這些新店的成功更堅定了我們到 2027 年達到 1,500 多家公司自營店的信念。

Our e-commerce business remains healthy, with revenue continuing to far exceed prepandemic levels. We did see a moderation in online traffic as consumers return to shopping in our stores in large numbers. E-commerce remains an important driver of our growth algorithm and we are committed to tripling its size over the next 5 years after successfully growing e-commerce into nearly $0.5 billion business over the last decade.

我們的電子商務業務保持健康，收入繼續遠遠超過大流行前的水平。隨著消費者大量返回我們的商店購物，我們確實看到在線流量有所緩和。電子商務仍然是我們增長算法的重要驅動力，在過去十年成功地將電子商務發展為近 5 億美元的業務後，我們致力於在未來 5 年內將其規模擴大兩倍。

To achieve this ambitious goal, we are building the capabilities and the organizational structure to both scale e-commerce and accelerate our broader digital transformation. As part of that, we are establishing a new Chief Digital Officer role that will report to me. The role will bring together our data, AI, engineering and digital product management efforts under one leader, who will spearhead our digital efforts for both e-commerce and our digital go-to-market. We see tremendous potential in e-commerce, and with the leadership to drive its success, we will move more quickly to realize it.

為了實現這一雄心勃勃的目標，我們正在建立能力和組織結構，以擴大電子商務規模並加速我們更廣泛的數字化轉型。作為其中的一部分，我們將設立一個新的首席數字官職位，該職位將向我匯報。該職位將把我們的數據、人工智能、工程和數字產品管理工作集中在一位領導者的領導下，他將領導我們在電子商務和數字化市場方面的數字化工作。我們看到了電子商務的巨大潛力，在推動其成功的領導下，我們將更快地實現它。

We also continue to leverage our data capabilities to deepen our direct personalized relationships with our consumers through our Levi's app and loyalty programs. The app continued to see strong engagement with monthly active users up double digits. It also expanded into India and is now available in 10 countries total, with plans to further roll out to 8 more countries across Europe this year.

我們還繼續利用我們的數據能力，通過我們的李維斯應用程序和忠誠度計劃加深我們與消費者的直接個性化關係。該應用程序的月活躍用戶繼續保持兩位數的強勁參與度。它還擴展到印度，現已在 10 個國家/地區推出，併計劃今年進一步推廣到歐洲的另外 8 個國家/地區。

These initiatives helped expand our loyalty member base by over 50% year-over-year, with gains in key member productivity metrics, including average order value. And while our direct-to-consumer business continues to generate consistently strong growth, our global wholesale business also continued its strong performance in Q2, growing 18% with improved profitability.

這些舉措幫助我們的忠誠度會員基數同比擴大了 50% 以上，並提高了包括平均訂單價值在內的關鍵會員生產力指標。儘管我們的直接面向消費者的業務繼續保持強勁增長，但我們的全球批發業務在第二季度也繼續保持強勁表現，增長 18%，盈利能力有所提高。

In terms of diversifying our portfolio, our third priority, we are focused on significant market opportunities in underpenetrated, high gross margin parts of our business that can drive strong growth even in these times of macro uncertainty. The opportunities here are tremendous, with untapped potential across women's, tops, international and our other brands, Dockers and Beyond Yoga.

在使我們的投資組合多樣化方面，我們的第三個優先事項是，我們專注於我們業務中滲透率低、毛利率高的部分的重大市場機會，即使在宏觀不確定的時期，這些部分也可以推動強勁的增長。這裡的機會是巨大的，在女裝、上衣、國際品牌和我們的其他品牌、Dockers 和 Beyond Yoga 中都有尚未開發的潛力。

This quarter, we made progress across each of these areas of focus. Following 11 consecutive quarters of prepandemic double-digit revenue growth, our total women's business grew 23%, the fifth consecutive quarter of double-digit growth since exiting the most challenging parts of the pandemic. While women's saw broad-based growth across geographic segments, growth was especially strong in the Americas, where the Levi's women's business was up 30%. And in our top 10 wholesale accounts globally, Levi's women's were up 50%.

本季度，我們在每個重點領域都取得了進展。在疫情前收入連續 11 個季度實現兩位數增長後，我們的女性業務總量增長了 23%，這是自走出疫情最具挑戰性的部分以來連續第五個季度實現兩位數增長。雖然女裝業務在各個地區都有廣泛的增長，但美洲地區的增長尤其強勁，Levi's 女裝業務增長了 30%。在我們全球前 10 大批發賬戶中，Levi's 女裝增長了 50%。

One of the biggest long-term opportunities we have ahead of us is to extend into true head-to-toe expressions of our brands and we're making solid progress. For the total company, tops were up 23% with strength broad-based globally across categories. We saw a particularly strong growth in the Americas, up 26%, with traction in Polos in the U.S., which were up more than tenfold on levi.com. Overall, women's saw continued strength in wovens and dresses in addition to double-digit growth in nongraphic tees. Our nondenim bottoms business also performed well, up nearly 20% for Levi's men's with continued success with our XX Chino and more.

擺在我們面前的最大的長期機遇之一是擴展我們品牌的真正從頭到腳的表達方式，我們正在取得紮實的進展。對於整個公司而言，頂級公司增長了 23%，其實力在全球範圍內廣泛分佈。我們看到美洲的增長特別強勁，增長了 26%，其中美國的 Polos 具有吸引力，在 levi.com 上增長了十倍以上。總體而言，除了無圖案 T 恤的兩位數增長外，女裝在梭織和連衣裙方面繼續保持強勁勢頭。我們的非牛仔褲業務也表現良好，隨著我們的 XX Chino 等產品的持續成功，Levi's 男裝業務增長了近 20%。

Our international business was up 19%, with all geographies delivering strong double-digit revenue growth. Our top markets in Europe, France, Germany and the U.K. were collectively up strong double digits. Excluding China and Hong Kong, where lockdowns have persisted, growth in Asia was over 40%, with every market contributing to that growth.

我們的國際業務增長了 19%，所有地區的收入都實現了兩位數的強勁增長。我們在歐洲、法國、德國和英國的主要市場共同實現了兩位數的強勁增長。不包括持續封鎖的中國大陸和香港，亞洲的增長率超過 40%，每個市場都對這一增長做出了貢獻。

Our other brands also performed well in the quarter. Dockers continue to build momentum, delivering 27% growth in Q2 as it beat internal plans on both the top and bottom line. This was supported by strong international and DTC growth as well as some notable wins with women's. Reflecting the progress we've made in refreshing the brand, Dockers women's launched on Amazon in the U.S. this quarter and at Zalando and El Corte Inglés in Europe. While it's early days, so far, the product is performing well.

我們的其他品牌在本季度也表現良好。 Dockers 繼續發展勢頭，在第二季度實現了 27% 的增長，因為它在頂線和底線上都超過了內部計劃。這得到了強勁的國際和 DTC 增長以及女子組的一些顯著勝利的支持。為反映我們在更新品牌方面取得的進展，Dockers 女裝本季度在美國亞馬遜和歐洲的 Zalando 和 El Corte Inglés 推出。雖然還處於早期階段，但到目前為止，該產品表現良好。

Beyond Yoga also made solid progress in the quarter with success in dresses, top colors and prints and its Mommy & Me collection, most of which sold out in the first week. On June 25, the brand also opened its first pop-up store at The Grove in Los Angeles and the initial response from consumers has been terrific. Beyond Yoga remains on track to open its first permanent store in Q4 of 2022.

Beyond Yoga 在本季度也取得了長足的進步，在連衣裙、頂級色彩和印花以及它的 Mommy & Me 系列方面取得了成功，其中大部分在第一周就售罄。 6 月 25 日，該品牌還在洛杉磯的 The Grove 開設了第一家快閃店，消費者的初步反應非常好。 Beyond Yoga 仍有望在 2022 年第四季度開設第一家常設店。

Across the board, this was a strong quarter marked by consistent execution of our strategic priorities. I want to recognize the hard work and dedication of our teams across the organization. We delivered solid results in a uniquely challenging operating environment.

總體而言，這是一個強勁的季度，其標誌是我們始終如一地執行戰略重點。我想表彰我們整個組織團隊的辛勤工作和奉獻精神。我們在極具挑戰性的運營環境中取得了可觀的成果。

I'll now turn it over to Harmit to cover the financial results in more detail. Harmit?

我現在將把它交給 Harmit 來更詳細地介紹財務結果。危害？

Thank you, Chip, and good afternoon, everyone. At our Investor Day in June, we laid out a clear long-term strategy designed to deliver faster growth, stronger margins and increase cash returns to our shareholders on our path to drive annual shareholder returns of 10% to 12% over the next 5 years. Our plan, which calls for annual revenue growth of 6% to 8%, adjusted EBIT margin expansion to 15% and our commitment to return 55% to 65% of our free cash flow to our shareholders over that time frame is bold yet achievable.

謝謝你，Chip，大家下午好。在 6 月的投資者日上，我們制定了一項明確的長期戰略，旨在為我們的股東帶來更快的增長、更高的利潤率並增加現金回報，從而在未來 5 年將年度股東回報率提高 10% 至 12% .我們的計劃要求年收入增長 6% 至 8%，調整後的息稅前利潤率擴大至 15%，我們承諾在此期間將 55% 至 65% 的自由現金流返還給股東，這是大膽但可以實現的。

In our second quarter, our team delivered on each of the 3 drivers of our long-term TSR algorithm: accelerated sales growth, margin expansion and cash return. We generated strong growth. Total net revenue grew 20% to $1.5 billion driven by 21% revenue growth in the U.S. and strong performance across our diverse global portfolio. Supply chain-related issues limited further revenue opportunity by approximately 2% primarily in the U.S. where strong demand continues to outpace supply.

在我們的第二季度，我們的團隊實現了我們長期 TSR 算法的三個驅動因素中的每一個：加速銷售增長、利潤率擴張和現金回報。我們實現了強勁的增長。受美國收入增長 21% 和我們多元化全球投資組合強勁表現的推動，總淨收入增長 20% 至 15 億美元。供應鏈相關問題將進一步的收入機會限制了約 2%，主要是在需求持續超過供應的美國。

Adjusted EBIT grew even faster, up 27% reported and 37% in constant currency, as adjusted EBIT margin expanded 90 basis points to a record second quarter level of 9.9%. The strong EBIT growth was a principal factor driving adjusted diluted EPS, up 26% to $0.29. We achieved these strong results even as we invested in our brand and navigated the impact of rising inflation, continued COVID-related challenges, geopolitical turmoil and foreign exchange headwinds. We also returned $80 million of capital to our shareholders through a combination of higher dividends and the repurchase of 2 million shares.

調整後息稅前利潤增長更快，報告增長 27%，按固定匯率計算增長 37%，調整後息稅前利潤率擴大 90 個基點，達到第二季度 9.9% 的創紀錄水平。強勁的息稅前利潤增長是推動調整後攤薄每股收益增長 26% 至 0.29 美元的主要因素。即使我們投資於我們的品牌並應對通脹上升、持續的 COVID 相關挑戰、地緣政治動盪和外匯逆風的影響，我們也取得了這些強勁的成果。我們還通過更高的股息和回購 200 萬股股票向股東返還了 8000 萬美元的資本。

Given the continued strong performance of our diversified business, we are also reaffirming our financial outlook for the year. Second quarter net revenue growth of 20% was primarily driven by higher volume as well as an increase in AUR, demonstrating again the strength of our brand and our leadership in the denim category as we price to offset inflation.

鑑於我們多元化業務的持續強勁表現，我們也重申了我們今年的財務前景。第二季度淨收入增長 20% 主要是由銷量增加和 AUR 增加推動的，這再次證明了我們的品牌實力和我們在牛仔布類別中的領導地位，因為我們通過定價來抵消通貨膨脹。

Direct-to-consumer channel net revenue increased 22%, driven by increased traffic, store expansion and continued gains in AUR, which were up high single digits. As Chip referenced, with consumer shopping behavior shifting from online to in-person shopping, our e-commerce business was down 2% in quarter 2, yet remains over 60% higher versus 2019 with its operating margin on a fully allocated basis in the mid-single digits. And growth through all digital channels was up 8% year-over-year, remaining elevated versus 2019 levels and comprising approximately 20% of total second quarter net revenue.

直接面向消費者的渠道淨收入增長了 22%，這得益於流量增加、商店擴張和 AUR 的持續增長，達到了高個位數。正如 Chip 所說，隨著消費者購物行為從在線購物轉向親自購物，我們的電子商務業務在第二季度下降了 2%，但與 2019 年相比仍然高出 60% 以上，其營業利潤率在中期完全分配的基礎上-個位數。所有數字渠道的增長同比增長 8%，與 2019 年相比保持較高水平，佔第二季度總淨收入的約 20%。

Adjusted gross margin was maintained in reported dollars at a second quarter record of 58.2%, primarily due to improved structure elements, including mix shift to higher gross margin DTC, international, women's as well as a sustainable improvement within wholesale. Combined with price increases, these factors offset higher product costs, including 80 basis points of higher air freight costs to support delivery of seasonal merchandise as well as 30 basis points negative impact due to declines of high gross margin market, China and Russia.

調整後的毛利率保持在第二季度創紀錄的 58.2%，這主要是由於結構要素的改善，包括向更高毛利率的 DTC、國際、女性以及批發業務的可持續改善。再加上價格上漲，這些因素抵消了較高的產品成本，包括提高了 80 個基點的空運成本以支持季節性商品的交付，以及由於中國和俄羅斯的高毛利率市場下降而導致的 30 個基點的負面影響。

Moving to SG&A. Adjusted SG&A expenses in the quarter were $711 million or 48.3% of net revenue, leveraging 90 basis points despite A&P being higher by 10 basis points. Our robust gross margin, coupled with our disciplined SG&A management and operating leverage, generated an adjusted EBIT margin expansion of 90 basis points to 9.9%, while adjusted EBIT dollars were up 37% in constant currency even as we continue to strategically invest in our long-term growth initiatives.

轉移到 SG&A。本季度調整後的 SG&A 費用為 7.11 億美元，占淨收入的 48.3%，儘管 A&P 高出 10 個基點，但仍使用了 90 個基點。我們強勁的毛利率，加上我們嚴格的 SG&A 管理和運營槓桿，使調整後的息稅前利潤率擴大了 90 個基點，達到 9.9%，而調整後的息稅前利潤增長了 37%，即使我們繼續戰略性地投資於我們的長期長期增長舉措。

As a result of Russia's invasion of Ukraine, we suspended the majority of our commercial activity in Russia, including the closure of the majority of our stores and the suspension of shipments through our wholesale and licensing customers. Given the high level of uncertainty found in our business in Russia, we fully instated the related long-term assets, including store assets and goodwill. The total charges related to Russia-Ukraine crisis recorded during the quarter were $60 million, impacting diluted earnings per share by $0.15.

由於俄羅斯入侵烏克蘭，我們暫停了我們在俄羅斯的大部分商業活動，包括關閉我們的大部分商店以及暫停通過我們的批發和許可客戶發貨。鑑於我們在俄羅斯的業務存在高度不確定性，我們充分恢復了相關的長期資產，包括商店資產和商譽。本季度記錄的與俄羅斯-烏克蘭危機相關的總費用為 6000 萬美元，攤薄後每股收益影響 0.15 美元。

Our effective tax rate was approximately 36%, which was higher due to a 15 percentage point tax rate increase resulting from nontax deductible charges related to the Russia-Ukraine crisis. Adjusted net income of $117 million was up from $93 million in quarter 2 of '21 due to the increase in adjusted EBIT and lower interest expense, partially offset by higher taxes as just referenced.

我們的有效稅率約為 36%，這是由於與俄羅斯-烏克蘭危機相關的非免稅費用導致稅率提高了 15 個百分點。調整後的淨收入為 1.17 億美元，高於 21 年第二季度的 9300 萬美元，原因是調整後的息稅前利潤增加和利息費用降低，部分被剛才提到的稅收增加所抵消。

I'll now take you through key highlights by segment. Recall, the regional segments include our Levi's brand, Levi's Signature and Denizen, while the other brand segment includes Dockers and Beyond Yoga.

我現在將按部分向您介紹主要亮點。回想一下，區域細分市場包括我們的 Levi's 品牌、Levi's Signature 和 Denizen，而其他品牌細分市場包括 Dockers 和 Beyond Yoga。

In the Americas, revenues grew 17%, driven primarily by higher unit volume as well as higher AURs across (inaudible). Overall, momentum in our largest market in the U.S. continued delivering growth of 16%. Canada saw strong growth, up double digits, and our overall LatAm business was up 18%, fueled by growth in Peru, Chile and Brazil. Our company-operated stores posted another strong quarter, up 20%, driven by increased traffic and price increases while wholesale grew 19% with particular strength in the U.S.

在美洲，收入增長了 17%，主要是由於更高的單位銷量以及更高的 AUR（聽不清）。總體而言，我們最大的美國市場的勢頭繼續實現 16% 的增長。加拿大實現了兩位數的強勁增長，在秘魯、智利和巴西的增長推動下，我們在拉丁美洲的整體業務增長了 18%。在客流量增加和價格上漲的推動下，我們公司自營的商店又一個強勁的季度增長了 20%，而批發增長了 19%，尤其是在美國。

Europe continues to see strong momentum, and revenue was up 3% reported and 15% constant despite the impact of the Russia-Ukraine crisis. DTC was up 38%, reflecting higher traffic as consumers return to shopping in stores. As a reminder, approximately 1/3 of company-operated stores were closed last year in the region. Most countries saw growth, including large markets such as France, Germany, Italy, Spain and the U.K.

歐洲繼續保持強勁勢頭，儘管受到俄羅斯-烏克蘭危機的影響，但報告的收入增長了 3% 和 15% 不變。 DTC 增長了 38%，反映出隨著消費者重返商店購物，客流量增加。提醒一下，去年該地區約有 1/3 的公司自營商店關閉。大多數國家都出現了增長，包括法國、德國、意大利、西班牙和英國等大型市場。

Asia accelerated and revenue was up 16% reported and 21% constant despite COVID-related restrictions negatively impacting markets like China and Hong Kong. Wholesale was up 41%, while DTC growth of 7% was led by both mainline and outlet stores. While growth was broad-based, large markets like ANZ, India and Japan were particularly strong. Thailand also transitioned from a license to a directly operated business in April, contributing to results. Overall, revenue growth in Asia helped triple operating profits and deliver an operating margin of 8.6%. Other brands net revenue was up 51%, driven by growth in Dockers and the addition of Beyond Yoga. Overall operating profits were also up [56%].

儘管與 COVID 相關的限制對中國和香港等市場產生了負面影響，但亞洲的收入增長了 16% 和 21% 不變。批發增長了 41%，而 DTC 增長了 7%，主要由主線和直銷店帶動。雖然增長基礎廣泛，但澳新銀行、印度和日本等大型市場尤其強勁。泰國也於 4 月從執照轉變為直營企業，為業績做出了貢獻。總體而言，亞洲的收入增長幫助實現了三倍的營業利潤和 8.6% 的營業利潤率。其他品牌的淨收入增長了 51%，這得益於 Dockers 的增長和 Beyond Yoga 的加入。整體營業利潤也上升了 [56%]。

Turning to balance sheet and cash flow. Inventories increased 29% from the prior year, consistent with our internal plan and our strategy to more effectively meet demand by investing selectively in core products, which can be sold across multiple future seasons. 1/3 of the increase includes the planned acceleration of receipts for our upcoming seasons to mitigate longer lead time. And the acquisition of Beyond Yoga and the transition of our Thailand business from a license to a directly operated business also contributed 3 percentage points of the year-to-year increase in inventory. Roughly 20% of the total inventory is comprised of products in transit. We are comfortable with the overall level composition and quality of inventory on hand.

轉向資產負債表和現金流。庫存比上一年增加了 29%，這與我們的內部計劃和我們通過有選擇地投資於可以在未來多個季節銷售的核心產品來更有效地滿足需求的戰略一致。 1/3 的增長包括計劃加快我們即將到來的季節的收貨，以減少更長的交貨時間。而收購Beyond Yoga以及我們泰國業務從特許經營向直營業務的轉變也貢獻了3個百分點的庫存同比增長。大約 20% 的總庫存是在途產品。我們對現有庫存的整體水平構成和質量感到滿意。

Cash and liquidity remained strong, with end of quarter net debt of $306 million and overall liquidity of $1.5 billion. Our leverage ratio remained at a multi-decade low of 1.1x. Adjusted free cash flow, which we now define as cash flow from operating activity less property, plant and equipment, was $13 million, down from $148 million in the second quarter of the prior year, primarily due to higher spending on inventory.

現金和流動性依然強勁，季度末淨債務為 3.06 億美元，整體流動性為 15 億美元。我們的槓桿率保持在 1.1 倍的十年低位。調整後的自由現金流（我們現在將其定義為來自經營活動的現金流減去物業、廠房和設備）為 1300 萬美元，低於去年第二季度的 1.48 億美元，主要是由於庫存支出增加。

In the second quarter, we returned approximately $80 million to shareholders. The company paid a dividend of $0.10 per share, 64% higher than 1 year ago. And in the quarter, we repurchased shares of approximately $40 million. Going forward, the company declared a dividend of $0.12 per share, a 20% increase from last quarter. And as I mentioned in June at Investor Day, the Board of Directors also authorized a new $750 million share repurchase program.

在第二季度，我們向股東返還了大約 8000 萬美元。該公司支付每股0.10美元的股息，比一年前高出64%。在本季度，我們回購了大約 4000 萬美元的股票。展望未來，該公司宣布派發每股 0.12 美元的股息，比上一季度增長 20%。正如我在 6 月的投資者日上提到的，董事會還授權了一項新的 7.5 億美元的股票回購計劃。

Moving on to our guidance for fiscal '22. Against a backdrop of continued macroeconomic volatility, we are focused on controlling the controllable and delivering results with strong execution and discipline as we have done in the past. We continue to see strong demand for our products across geographies and categories, and our teams remain focused on executing on our strategic priority to capitalize on these opportunities through the balance of the year.

繼續我們對 '22 財年的指導。在宏觀經濟持續波動的背景下，我們一如既往地專注於控制可控並以強大的執行力和紀律性交付成果。我們繼續看到各個地區和類別對我們產品的強勁需求，我們的團隊仍然專注於執行我們的戰略重點，以在今年餘下時間利用這些機會。

The underlying trends we are seeing in our business supports our continued expectation for 11% to 13% and we reported net revenue growth to $6.4 billion to $6.5 billion. This is allowing us to offset 100 to 150 basis points of incremental headwind from currency and lockdown restrictions in China from when we last shared guidance with you in April. This represents 13% to 15% net revenue growth on a constant currency basis, well above our expectations coming into the year.

我們在業務中看到的基本趨勢支持我們對 11% 至 13% 的持續預期，我們報告淨收入增長至 64 億至 65 億美元。這使我們能夠抵消自 4 月上次與您分享指導以來中國貨幣和鎖定限制帶來的 100 至 150 個基點的增量逆風。按固定匯率計算，這代表 13% 至 15% 的淨收入增長，遠高於我們對今年的預期。

Looking at our reported net revenue outlook by region, we now expect Americas to be up low teens; Asia, mid-teens; and Europe, flat to slightly down. In constant currency, Asia excluding FX would be up approximately 20%; and Europe, excluding FX and Russia, would be up low double digits. Our full year expectation for adjusted gross margin expansion of 20 to 40 basis points, EBIT margin expansion of 20 to 30 basis points and CapEx of $270 million have not changed.

從我們報告的按地區劃分的淨收入前景來看，我們現在預計美洲的收入將增長到十幾歲；亞洲，十幾歲；與歐洲持平至小幅下跌。按固定匯率計算，不包括外彙在內的亞洲將上漲約 20%；和歐洲（不包括外彙和俄羅斯）將上漲兩位數。我們對調整後毛利率增長 20 至 40 個基點、息稅前利潤率增長 20 至 30 個基點和 2.7 億美元資本支出的全年預期沒有改變。

We are planning for a tax rate of approximately 20% for the full year, up from our prior outlook of mid- to high teens. We're also maintaining our expectations for adjusted diluted EPS of $1.50 to $1.56 as the quarter 2 [be] and underlying strength in our business are helping offset incremental headwinds from when we last guided in April, including $0.02 from foreign exchange, $0.02 from the higher tax rate and $0.04 impact from more protected lockdowns in China.

我們計劃全年的稅率約為 20%，高於我們之前對中高青少年的預期。我們還維持對調整後稀釋後每股收益 1.50 美元至 1.56 美元的預期，因為第 2 季度 [be] 和我們業務的潛在實力正在幫助抵消我們上次在 4 月指導時的逆風，包括來自外彙的 0.02 美元，來自外彙的 0.02 美元更高的稅率和 0.04 美元的影響來自中國更多受保護的封鎖。

With respect to our expectations in the second half, I'll share some color on SG&A expenses and the tax rate. We currently expect Q3 to show some deleverage given lower relative investment in the prior year and as we continue to invest in new stores and A&P. Q4 will be around prior year as a percentage of revenue. We also expect the tax rate in the mid-20s in the third quarter due to the continued anticipated impact of COVID-related restrictions in China.

關於我們對下半年的預期，我將分享一些關於 SG&A 費用和稅率的顏色。我們目前預計第三季度將顯示出一些去槓桿化，因為上一年的相對投資較低，而且我們繼續投資於新店和 A&P。第四季度佔收入的百分比約為上一年。由於中國與 COVID 相關的限制措施的持續預期影響，我們還預計第三季度的稅率將在 20 年代中期。

Finally, as we upgrade to our new on-the-cloud ERP system in early quarter 2 of next year in the U.S., post successful implementations in both Mexico and Canada, we will be building mostly coproducts in Q3 and Q4 to protect shipments to our customers. This upgraded ERP will be instrumental in increasing speed and agility by providing us real-time visibility to inventory across our network and setting us up well to accelerate our direct-to-consumer business.

最後，隨著我們在明年第 2 季度初在美國升級到新的雲端 ERP 系統，並在墨西哥和加拿大成功實施後，我們將在第 3 季度和第 4 季度構建主要的聯產品，以保護我們的出貨量顧客。升級後的 ERP 將有助於提高速度和敏捷性，為我們提供對整個網絡庫存的實時可見性，並為我們做好準備以加速我們的直接面向消費者的業務。

In summary, we continue to see momentum across the business. We've been able to build on a phenomenal '21 to deliver a very strong performance in the first half of '22. We are on track to deliver a solid '22 while making progress across our strategic priorities, setting us up well to deliver on our longer-term financial target.

總之，我們繼續看到整個業務的發展勢頭。我們已經能夠在 21 年驚人的基礎上再接再厲，在 22 年上半年提供非常強勁的表現。我們有望實現穩健的 '22，同時在我們的戰略重點方面取得進展，為實現我們的長期財務目標做好準備。

I will close with 3 key messages. First, the broad diversity of our business across geographies, channels and product categories provides us with the control and optionality to successfully navigate the challenges of the external environment. This positions us to deliver in both good and tough time.

我將以 3 條關鍵信息結束。首先，我們跨地域、渠道和產品類別的廣泛業務多樣性為我們提供了成功應對外部環境挑戰的控制力和選擇性。這使我們能夠在好的和艱難的時期交付。

Second, the strength of our brands, strong execution by our team and disciplined cost management have allowed us to expand and sustain gross and EBIT margin expansion.

其次，我們的品牌實力、團隊的強大執行力和嚴格的成本管理使我們能夠擴大和維持毛利率和息稅前利潤率的增長。

Third, we have made great progress on our commitment to return cash to our shareholders, increasing our dividend by 20% from last quarter, completing our $200 million share repurchase program in the quarter and announcing a $750 million repurchase authorization at our Analyst Day. Year to date, we have returned close to $200 million to our shareholders, a 400% increase over last year.

第三，我們在向股東返還現金的承諾方面取得了很大進展，我們的股息比上一季度增加了 20%，完成了本季度 2 億美元的股票回購計劃，並在分析師日宣布了 7.5 億美元的回購授權。年初至今，我們已向股東返還了近 2 億美元，比去年增加了 400%。

These 3 factors have allowed us to deliver a strong first half in '22 and reaffirm full year guidance despite all the headwinds in the marketplace.

這三個因素使我們能夠在 22 年上半年實現強勁的業績，並重申全年指導，儘管市場上存在種種不利因素。

With that, I'll now go ahead and open the call for Q&A.

有了這個，我現在將繼續打開問答電話。

(Operator Instructions) Our first question comes from the line of Matthew Boss from JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Matthew Boss。

Congrats on another nice quarter. So Chip, on the continued momentum and strength of the brand, could you maybe speak to drivers behind the acceleration notably that you're seeing in the Americas? Maybe what's driving the combination of both AUR and unit growth? And just how do you see Levi's positioned to take share in this dynamic backdrop as now we move forward?

恭喜又一個不錯的季度。因此，Chip，關於該品牌的持續發展勢頭和實力，您能否與加速背後的司機談談，尤其是您在美洲看到的情況？也許是什麼推動了 AUR 和單位增長的結合？在我們前進的過程中，您如何看待 Levi's 在這個充滿活力的背景下分一杯羹？

Well, I would say first thing, I'll answer the second half of your question first, which is I think we're -- the Levi's brand is incredibly well positioned in this very dynamic environment to continue to accelerate and grow share. And the strength of this quarter gives me a lot of confidence in saying that.

好吧，我首先要說的是，我將首先回答你問題的後半部分，我認為我們是——Levi's 品牌在這個充滿活力的環境中處於非常有利的位置，可以繼續加速並增加份額。本季度的實力讓我很有信心這麼說。

I'd say there are a number of key drivers to our success, if you want to focus specifically on the U.S. Obviously, the continuation of casualization, it's a dynamic that's playing out globally, that's helped us a lot, but the U.S. jeans market, just got the data for the last 12 months ending May, U.S. jeans were up 19%, and that was faster than total apparel. So as the market leader, we are clearly the ones driving that.

我想說我們的成功有很多關鍵驅動因素，如果你想特別關注美國。顯然，休閒化的延續，這是一種在全球範圍內上演的動態，這對我們有很大幫助，但美國牛仔褲市場，剛剛獲得了截至 5 月的過去 12 個月的數據，美國牛仔褲上漲了 19%，這比整體服裝要快。因此，作為市場領導者，我們顯然是推動這一點的人。

We've got some recent consumer research. More consumers are now wearing jeans more often in professional settings. I would say maybe even at your bank, the CEO is probably just happy that people are coming into work and wearing a pair of jeans is perfectly acceptable today, and that's very different than a prepandemic world. More than half of the people that were surveyed in the survey, and this was done globally, said that they can now wear jeans to work. That's a huge change from prepandemic.

我們最近進行了一些消費者研究。現在，越來越多的消費者在專業場合更頻繁地穿著牛仔褲。我想說的是，即使是在你的銀行，CEO 也可能只是很高興人們開始工作並穿著一條牛仔褲在今天是完全可以接受的，這與大流行前的世界非常不同。超過一半的受訪者表示，他們現在可以穿牛仔褲上班了。與疫情前相比，這是一個巨大的變化。

So the trend towards casualization is definitely helping. And with denim cycle that we've talked about after probably over a year, strength in loose, baggier fits. But when I look at our business, probably the strongest testimony to the strength of our brand is just what's happening on the 501. Now that is our most iconic item. It was up 40% again this quarter across men's and women's, real solid growth.

因此，休閒化的趨勢肯定會有所幫助。而對於我們可能在一年多之後討論過的牛仔布週期，鬆散、寬鬆的合身力量是有力量的。但當我審視我們的業務時，可能最能證明我們品牌實力的就是 501 上正在發生的事情。現在這是我們最具標誌性的產品。本季度男裝和女裝再次增長 40%，實現了真正的穩健增長。

And the brand fundamentally has never been stronger. And that is probably best seen in the split of unit growth and AUR growth. I mean our AURs, this is on a global basis, so I don't have the numbers off the top of my head for U.S., but on a global basis, our AURs were up 8% and unit growth grew double digit, 11%.

從根本上說，該品牌從未如此強大。這可能在單位增長和 AUR 增長的分離中得到最好的體現。我的意思是我們的 AUR，這是在全球範圍內，所以我沒有想到美國的數字，但在全球範圍內，我們的 AUR 增長了 8%，單位增長率增長了兩位數，即 11% .

And so we've successfully passed through pricing that has contributed to us being able to hold our gross margin at levels equal to a year ago. Despite all the headwinds that Harmit talked about in the prepared remarks, the impact of no Russia and less sales in China, both high gross margin businesses, impact of air freight, we've offset all of those things plus higher cost of goods that help gross margin, which speaks to just the power of the Levi's brand.

因此，我們成功地通過了定價，這有助於我們將毛利率保持在與一年前相同的水平。儘管哈米特在準備好的講話中談到了所有不利因素，沒有俄羅斯和中國銷售減少的影響，高毛利率業務，空運的影響，我們已經抵消了所有這些因素加上更高的商品成本有助於毛利率，這說明了李維斯品牌的力量。

And then finally, we're just continuing to connect with consumers in a really relevant and authentic way. And that's what we do really, really well. And that's what's put this brand in such a strong position over the last several years. So we can't control inflation. We can't control what's going to happen to interest rates or whatever the Fed is going to do or anything else. But we can focus on the things that are within our control. And we're going to continue to do a great job executing against those things, connecting with consumers and building the brand.

最後，我們只是繼續以一種真正相關和真實的方式與消費者建立聯繫。這就是我們所做的，非常非常好。這就是讓這個品牌在過去幾年中處於如此強勢地位的原因。所以我們無法控制通貨膨脹。我們無法控制利率或美聯儲將要做什麼或其他任何事情會發生什麼。但我們可以專注於我們控制範圍內的事情。我們將繼續在這些方面做得很好，與消費者建立聯繫並建立品牌。

Congrats again on the momentum.

再次祝賀勢頭。

Thanks, Matt.

謝謝，馬特。

Our next question comes from Kimberly Greenberger of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Kimberly Greenberger。

Okay. Great. If I could ask a two-part question, I wanted -- Harmit, you mentioned the ERP implementation happening in the U.S. in the second quarter of next year. Could you just talk about how we'll see that manifest in inventory growth as you sort of proactively build some inventory just to make sure that you can deliver on time through that entire period of that implementation? When does inventory rise? When do we see it normalize on a quarter-by-quarter basis? Just any color you could offer there.

好的。偉大的。如果我可以問一個由兩部分組成的問題，我想 -- Harmit，你提到了明年第二季度在美國發生的 ERP 實施。您能否談談我們如何在庫存增長中看到這一點，因為您會主動建立一些庫存，以確保您可以在整個實施期間按時交付？庫存何時上升？我們什麼時候看到它按季度正常化？你可以在那裡提供任何顏色。

And then, Chip, we heard that there was just a slight softening in retail sales among some of the U.S. retailers here over the last month or so. I don't know if you have an order book or if you have any sort of a forward view in terms of customer orders here in the U.S. and the behavior that you might be seeing among those customers on their future order commitments. If you have anything to share on that, we would certainly be interested to hear.

然後，奇普，我們聽說在過去一個月左右的時間裡，這裡的一些美國零售商的零售額略有放緩。我不知道您是否有訂單簿，或者您是否對美國的客戶訂單以及您可能在這些客戶中看到的未來訂單承諾行為有任何前瞻性看法。如果您對此有什麼要分享的，我們當然會很感興趣。

Sure. I'll take the ERP question. The U.S. is going to be a third implementation of the upgrade. We've done Mexico, we've done Canada. Both have gone really well. U.S. is the largest market. A couple of other retailers have done the U.S., and we are bringing to the -- a new one with the cloud, SAP system, clear benefits.

當然。我會回答 ERP 的問題。美國將是升級的第三次實施。我們已經完成了墨西哥，我們已經完成了加拿大。兩者都進行得非常好。美國是最大的市場。其他幾家零售商已經在美國開展業務，我們正在帶來一個具有云、SAP 系統和明顯優勢的新零售商。

The way we are thinking of inventory, and as you know, Kimberly, U.S. is largely a core market where we carry the product through multiple seasons. Our expectation is between quarter 3 and quarter 4, we probably build about approximately $100 million in inventory that then waters down in quarter 1, quarter 2 of next year. We're looking to implement this in early Q2 of 2023.

我們考慮庫存的方式，如您所知，美國金佰利在很大程度上是一個核心市場，我們將產品運送到多個季節。我們的預期是在第 3 季度和第 4 季度之間，我們可能會建立大約 1 億美元的庫存，然後在明年的第 1 季度和第 2 季度減少。我們希望在 2023 年第二季度初實現這一點。

So that's how everyone is thinking about it and working through it. I mean there's a dedicated team, a staff for a major implementation, and our commercial teams are directly involved, obviously, the discussions with key customers since it's -- it takes two to tango. And so collaboratively, we feel we can get this done and do it in a way that we can actually predict consumer demand and ensure that we satisfy the fill rates, et cetera.

所以這就是每個人都在思考和解決它的方式。我的意思是有一個專門的團隊，一個主要實施的工作人員，我們的商業團隊顯然直接參與了與關鍵客戶的討論，因為它需要兩個人來探戈。因此，通過協作，我們覺得我們可以完成這項工作，並以一種我們可以實際預測消費者需求並確保我們滿足填充率等的方式來做到這一點。

Over to you, Chip.

交給你了，奇普。

Kimberly, I'll try to keep this pretty brief. Our wholesale results in the quarter were very, very strong as we talked about in the prepared remarks. And on our core Red Tab business, Levi's Red Tab focused here on the U.S. specifically, we really have not seen any softening or have heard really any concern about Levi's Red Tab from our customers. The one soft spot in our business in the second quarter was on Signature and Denizen, our 2 value brands. Not surprisingly, those businesses were down mid-single digits. And as you know, those businesses represent a real, real small part of our total revenue, kind of low single digits of our total revenue.

金伯利，我會盡量保持簡短。正如我們在準備好的評論中談到的那樣，我們本季度的批發業績非常非常強勁。在我們的核心 Red Tab 業務中，Levi's Red Tab 專注於美國，特別是，我們真的沒有看到任何軟化，也沒有聽到我們的客戶對 Levi's Red Tab 有任何擔憂。第二季度我們業務的一個軟肋是我們的兩個價值品牌 Signature 和 Denizen。毫不奇怪，這些業務下降了中個位數。如您所知，這些業務僅占我們總收入的一小部分，占我們總收入的低個位數。

But those 2 brands, which were up in the first quarter, were down mid-single digits in the second quarter. So there's some evidence that the value consumer or the low-income consumer is really starting to feel the squeeze. This shouldn't be a surprise based on the results from Walmart and Target. But Levi's Red Tab at Target is still doing really well. And we feel really, really good about how we're positioned right now in wholesale. We haven't seen any signs of cracks. And I think, again, that speaks to the strength of the Levi's brand.

但這兩個品牌在第一季度有所增長，但在第二季度下降了中個位數。因此，有一些證據表明，價值消費者或低收入消費者真正開始感受到壓力。根據沃爾瑪和塔吉特的結果，這應該不足為奇。但在 Target 的 Levi's Red Tab 仍然做得很好。我們對我們現在在批發領域的定位感到非常非常好。我們沒有看到任何裂縫的跡象。而且我認為，這再次說明了李維斯品牌的實力。

Our next question comes from Omar Saad of Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Omar Saad。

It's great to hear so many different pieces of the business is performing well. It's also great to hear you guys are allocating more resources and talent to build out the digital organization. But maybe to push in a little bit deeper on the digital performance in the quarter, guys, I think it was plus 3% overall. Maybe you could also dive in a little bit e-com versus digital wholesale.

很高興聽到這麼多不同的業務表現良好。很高興聽到你們正在分配更多資源和人才來建立數字組織。但也許是為了更深入地推動本季度的數字表現，伙計們，我認為總體上增加了 3%。也許你也可以深入了解一下電子商務與數字批發。

And then given the importance of digital and DTC to the elevated longer-term growth algorithm you guys laid out not that long ago, maybe talk about the e-com performance and where you think it should go and where you think it can be. And I'm also wondering, is there any supply chain and inventory hindrances holding that channel back?

然後考慮到數字和 DTC 對你們不久前提出的提升的長期增長算法的重要性，也許可以談談電子商務性能以及你認為它應該去哪里以及你認為它可以去哪裡。我還想知道，是否有任何供應鍊和庫存障礙阻礙了該渠道？

Yes, Omar. Digital overall was up. Our own e-commerce, as I mentioned, was down. It's also down because we were lapping some really strong numbers. As well as the consumer heads back to the stores, there's a bit of the online shopping shifting to the stores, and we saw that in the form of higher traffic.

是的，奧馬爾。數字整體上升。正如我所提到的，我們自己的電子商務出現了下滑。它也下降了，因為我們有一些非常強勁的數字。除了消費者回到商店外，還有一些在線購物轉移到商店，我們以更高的客流量形式看到了這一點。

In terms of the puts and takes, if you think about the world, Americas is generally strong on digital. Europe is slightly weaker. There's some retailers like Zalando that have reported weaker sales. And Asia is still strong. So the question about what we'd like to do and where we like to go, we are in the early stages of really accelerating this business with the announcement Chip made on getting a Chief Digital Officer. You have somebody in the company besides the folks in the commercial side of the business waking up every morning trying to drive and grow this business.

就看跌期權而言，如果您考慮一下世界，美洲通常在數字方面表現出色。歐洲稍弱。有一些像 Zalando 這樣的零售商報告銷售疲軟。亞洲仍然很強大。因此，關於我們想做什麼以及我們想去哪裡的問題，我們正處於真正加速這項業務的早期階段，Chip 宣布任命首席數字官。除了業務的商業方面的人每天早上醒來試圖推動和發展這項業務之外，您公司中還有其他人。

As we said in the Investor Day, that we would -- our goal is to triple the size of this business from 7% to about 15%, attributable size of the business, which will also help EBIT margin there. We think there's a huge opportunity. We just rolled out the app in the tenth country -- sorry at least 20 countries where the app needs to be. We still get a small percentage of people buying through the app. So the opportunity in that is immense. And our loyalty program is just getting started. We have 19 million consumers around the world, brand that Levi's definitely has trend. Beyond Yoga continues to grow e-commerce. Dockers e-commerce growth is accelerating. So the real work is to get levi.com to where we like it to be.

正如我們在投資者日所說的那樣，我們的目標是將這項業務的規模從 7% 增加到約 15%，這也將有助於那裡的息稅前利潤。我們認為這是一個巨大的機會。我們剛剛在第十個國家/地區推出了該應用程序——對不起，至少有 20 個國家/地區需要該應用程序。我們仍然有一小部分人通過該應用程序購買。因此，其中的機會是巨大的。我們的忠誠度計劃才剛剛開始。我們在全球擁有 1900 萬消費者，Levi's 絕對有趨勢的品牌。 Beyond Yoga 繼續發展電子商務。 Dockers 電子商務的增長正在加速。所以真正的工作是讓 levi.com 到達我們喜歡的位置。

Got it. It sounds like with loyalty accelerating, a key to accelerating the e-com will be translating that loyalty to transactions.

知道了。聽起來，隨著忠誠度的提高，加速電子商務的關鍵是將忠誠度轉化為交易。

Correct. Correct.

正確的。正確的。

Our next question comes from Laurent Vasilescu of Exane BNP Paribas.

我們的下一個問題來自 Exane BNP Paribas 的 Laurent Vasilescu。

Harmit, I think you mentioned in your prepared remarks that China and FX is an incremental 100 to 150 basis point headwind for the full year. Just curious -- on China specifically, just curious to know how it performed in 2Q. And what is your expectation for the year as we think about that 100 to 150 basis points?

哈米特，我想你在準備好的發言中提到，中國和外匯是全年增加 100 到 150 個基點的逆風。只是好奇——特別是在中國，只是想知道它在第二季度的表現如何。考慮到這 100 到 150 個基點，您對今年的預期是什麼？

And then if I could squeeze in a second question, Harmit. I think you alluded to the 4Q revenues. In the transcript, it's still not populating correctly. But just how do we think about 3Q, 4Q revenues for the back half?

然後，如果我可以插入第二個問題，哈米特。我認為您提到了第四季度的收入。在成績單中，它仍然沒有正確填充。但是，我們如何看待後半部分的 3Q、4Q 收入？

Yes, sure. So China, Laurent, as we mentioned in Investor Day, a small piece of our business, we started the year at about 3%. We think we end the year about 2% of our business from China. We have a wonderful team on the ground and they're working through all the puts and takes. China was down, I believe, close to 50% in quarter 2, largely because our stores were locked down. And we don't have a large e-commerce. We've been trying to build that. And so we couldn't offset the stores being closed.

是的，當然。所以中國，Laurent，正如我們在投資者日中提到的，我們業務的一小部分，我們年初的利潤率約為 3%。我們認為年底我們約有 2% 的業務來自中國。我們有一支出色的團隊，他們正在努力完成所有的投入和投入。我相信，中國在第二季度下降了近 50%，主要是因為我們的商店被封鎖了。而且我們沒有大型電子商務。我們一直在努力構建它。所以我們無法抵消關閉的商店。

The 100 to 150 basis points of headwinds that I talked about, largely in the second half, essentially driven by foreign exchange and China being 2 pieces of it, FX being the euro and the pound. As you think about Q3 and Q4, I think Q3 is mid- to high single-digit growth versus '21 and Q4 in the mid-single digit. I mean I think a good comparison is to relate both the Q3, Q4 H2 to 2019. And you'll see, really, in 2019, we're growing in the low double digits. And I can definitely give some more color on the inventory with questions on that later on.

我談到的 100 到 150 個基點的逆風，主要是在下半年，主要是由外匯推動的，中國是其中的兩部分，外匯是歐元和英鎊。當您考慮 Q3 和 Q4 時，我認為 Q3 是中高個位數增長，而 21 年和 Q4 是中個位數。我的意思是我認為一個很好的比較是將 Q3、Q4 H2 與 2019 年聯繫起來。你會看到，真的，在 2019 年，我們正在以兩位數的低位增長。而且我肯定可以在稍後的問題上為庫存提供更多顏色。

Our next question comes from Paul Lejuez of Citi.

我們的下一個問題來自花旗的 Paul Lejuez。

It's Tracy Kogan filling in for Paul. I was wondering if you guys could talk about store traffic and conversion in each of your regions and how that compared to 2019. And also then specifically in China, since the lockdowns have abated, what store traffic -- or how has the store traffic built since the lockdown has ended?

是特蕾西·科根（Tracy Kogan）代替保羅。我想知道你們是否可以談談你們每個地區的商店客流量和轉化率，以及與 2019 年相比情況如何。尤其是在中國，由於封鎖已經減輕，商店客流量是多少——或者商店客流量是如何建立的自從封鎖結束以來？

Yes. Tracy, the store traffic is growing relative to a year ago, generally across the board. It's very difficult to go country by country because different countries have different elements of geopolitical COVID uncertainty. But traffic, we saw build, and that's why Chip in prepared remarks talked about the growth we are seeing in our brick-and-mortar stores, especially in key cities.

是的。特蕾西，商店的客流量相對一年前正在增長，總體上是全線增長。很難逐個國家進行，因為不同的國家有不同的地緣政治 COVID 不確定性因素。但是，我們看到流量在增加，這就是為什麼 Chip 在準備好的評論中談到我們在實體店中看到的增長，特別是在主要城市。

We see tourist traffic beginning to improve. The Chinese tourist is absent, but outside that, we really see tourist traffic improve. And having said all that, traffic relative to '19 is still -- is still below '19 level, right? So traffic hasn't gone back to '19 levels. Conversion rates and higher units per transaction because now we have a lot more to offer from a head to toe perspective helps offset the traffic decline relative to '19, especially in the U.S.

我們看到旅遊交通開始改善。中國遊客缺席，但除此之外，我們確實看到遊客流量有所改善。說了這麼多，相對於 19 年的流量仍然 - 仍然低於 19 年的水平，對吧？所以流量並沒有回到 19 年的水平。轉化率和每筆交易更高的單位，因為現在我們從頭到腳的角度提供了更多，這有助於抵消相對於 19 年的流量下降，尤其是在美國。

And we are opening doors. We should have 70-odd doors on a net basis open this year. U.S. is also opening doors. And we talked in the Investor Day how we think we can open, on a net basis, about 18 new doors '23 onwards. I mean, structurally, the economics are a little different. In brick-and-mortar, obviously, we negotiated rent reduction, lower rents and new doors, et cetera, because we're one of the few retailers that continue to open doors. I think structurally, the economics are slightly better, help offset (inaudible).

我們正在敞開大門。今年我們應該有 70 多扇淨門打開。美國也在敞開大門。我們在投資者日討論了我們如何認為我們可以在 23 年以後以淨額方式打開大約 18 扇新大門。我的意思是，在結構上，經濟學有點不同。顯然，在實體店中，我們協商減租、降低租金和新門，等等，因為我們是為數不多的繼續開門營業的零售商之一。我認為在結構上，經濟性稍好一些，有助於抵消（聽不清）。

Our next question comes from [Will Gartner] of Wells Fargo.

我們的下一個問題來自富國銀行的 [Will Gartner]。

Why don't we move to the next caller and come back to Will?

我們為什麼不移動到下一個呼叫者並回到威爾？

Absolutely. Our next question comes from Jim Duffy of Stifel.

絕對地。我們的下一個問題來自 Stifel 的 Jim Duffy。

Nice work in the quarter. I wanted to ask, there's been a lot of volatility in the commodities market. Though the recent correction has been sharp, when do you lock in costs for the first half of fiscal '23? And does the correction we've seen in the commodities landscape have you rethinking the rate of price increases that you had talked about for the back half of the year at all?

本季度工作不錯。我想問一下，大宗商品市場波動很大。儘管最近的調整非常劇烈，但您何時鎖定 23 財年上半年的成本？我們在大宗商品領域看到的調整是否讓您重新考慮過您在下半年談到的價格上漲速度？

Yes, Jim. So broadly speaking, we lock in our open to buy twice a year. So the first half of '23 is largely locked in. Unfortunately, a higher price -- a higher commodity price point. The good news, as you've seen the cotton futures, and they indicate futures beginning December, cotton is trading -- it was below $0.90 yesterday, below $0.90. I haven't seen when the market closed. I was looking at it earlier. And the average cotton price -- the cotton price is between $0.80 and $0.90. So it's trending back, hopefully. So it's definitely going to help us in the second half of next year.

是的，吉姆。所以從廣義上講，我們鎖定了一年兩次的公開買入。所以 23 年上半年基本上被鎖定了。不幸的是，更高的價格——更高的商品價格點。好消息，正如您已經看到的棉花期貨，它們表明從 12 月開始的期貨，棉花正在交易——昨天低於 0.90 美元，低於 0.90 美元。我還沒有看到市場什麼時候收盤。我之前也在看。而棉花的平均價格——棉花價格在 0.80 美元到 0.90 美元之間。所以它正在回歸，希望如此。所以它肯定會在明年下半年幫助我們。

To your question about pricing, we have taken pricing thoughtfully earlier on. We have taken some pricing in H2. And we've been very thoughtful about '23. Obviously, it's important for us to offset cost increases and doing it surgically is critical. But it is very powerful. The other piece is despite the pricing that we've taken, we still -- our products are still -- provide great value to the consumer. And I think that's evidenced by the fact that our revenue growth is well balanced between unit volumes and AURs. Not every percentage increase in AUR is driven by pricing. Mix is also making (inaudible).

對於您關於定價的問題，我們之前已深思熟慮地定價。我們在下半年採取了一些定價。我們對 23 年的事情考慮得很周到。顯然，抵消成本增加對我們來說很重要，而且通過手術來實現這一點至關重要。但它非常強大。另一部分是儘管我們採取了定價，但我們仍然——我們的產品仍然——為消費者提供了巨大的價值。我認為這可以從我們的收入增長在單位數量和 AUR 之間得到很好的平衡這一事實得到證明。並非 AUR 的每一個百分比增長都是由定價驅動的。混音也在製作（聽不清）。

Great. And just one more, if I may. Are you feeling any more or less confident in the promotional environment as you look to the back-to-school season and holiday season?

偉大的。如果可以的話，還有一個。當您展望返校季和假期時，您是否對促銷環境感到或多或少有信心？

Yes. No. The brands -- the good news that Chip said, the brand is very strong, strong [as it's been]. And Dockers and Beyond Yoga, strong brands, too, from that perspective. We did in quarter 2 -- I mean our gross margin did include about 100 basis points of incentive units. You like to sell every unit at full price, but we did sell incentive units. We've got a similar cadence built into the second half.

是的。不。品牌——Chip 說的好消息，品牌非常強大，非常強大 [一直如此]。從這個角度來看，Dockers 和 Beyond Yoga 也是強大的品牌。我們在第二季度做了——我的意思是我們的毛利率確實包括大約 100 個基點的激勵單位。您喜歡以全價出售每個單位，但我們確實出售了激勵單位。我們在下半場建立了類似的節奏。

As we think about back-to-school, we think our product offers and our marketing offers will drive consumers to our product. And we'll be thoughtful about promotional levels. We're not going to be uncompetitive, but we'll be thoughtful as we think about back-to-school and the holiday season, which will be upon us. This Prime Day also around the corner. So we've been very thoughtful of that.

當我們考慮返校時，我們認為我們的產品優惠和營銷優惠將推動消費者購買我們的產品。我們會考慮促銷水平。我們不會失去競爭力，但我們會在考慮返校和假期時考慮周到，這將在我們身上。這個 Prime Day 也即將到來。所以我們對此深思熟慮。

But overall, given the strength of the brand, the fact that we are looking at promotion levels with AI and machine learning and other tools, I think we'll be okay.

但總的來說，考慮到品牌的實力，我們正在考慮使用人工智能和機器學習和其他工具來提升水平，我認為我們會沒事的。

(Operator Instructions) Our next question comes from Brooke Roach of Goldman Sachs.

（操作員說明）我們的下一個問題來自高盛的布魯克·羅奇。

Can you talk to the trends that you're seeing in your business in Europe, especially in the context of the choppy macro environment? What are you seeing there now that gives you confidence to raise your underlying ex-FX and ex-Russia guide for the region for the year?

您能否談談您在歐洲業務中看到的趨勢，尤其是在動蕩的宏觀環境下？您現在在那裡看到什麼讓您有信心提高該地區今年的基礎前外彙和前俄羅斯指南？

Brooke, the brand is strong. One could argue prepandemic, the brand was strongest in Europe and the execution was probably the best. They continue to leverage both the strength of the brand as well as execution and driving strong performance.

布魯克，品牌很強大。有人可能會爭辯說，該品牌在歐洲最強大，執行力可能是最好的。他們繼續利用品牌的力量以及執行力和強勁的業績。

A couple of things. One, in Europe, we have wholesale retailers that do commit. They have a prebook process that we booked in the second half is in the high single digits, which is good news. So that gives us some confidence as well as great execution. I think that balances the consumer sentiment and other stock that we'll be seeing with the fact the economies are opening, tourism is in with a big bang in Europe. I think other things that give us a little bit of confidence besides [expensive brand] and execution on the one of our team there.

有幾件事。一，在歐洲，我們有批發零售商承諾。他們有一個我們在下半年預訂的預訂流程，這是一個高個位數，這是個好消息。因此，這給了我們一些信心以及出色的執行力。我認為這平衡了我們將看到的消費者情緒和其他股票與經濟正在開放、旅遊業在歐洲大放異彩的事實。我認為除了 [昂貴的品牌] 和我們團隊的執行力之外，還有其他一些事情可以給我們一點信心。

Our next question comes from Robert Drbul of Guggenheim Securities.

我們的下一個問題來自古根海姆證券公司的 Robert Drbul。

Just I have two questions. The first one, can you talk a little bit about just the wholesale channel inventory levels that are out in the market, just sort of where you think your brands are and where sort of the category is generally?

只是我有兩個問題。第一個，你能談談市場上批發渠道的庫存水平嗎，你認為你的品牌在哪裡，一般在哪裡？

And then Chip, you're usually pretty good with some of the trends. I was wondering if long jean shorts appear to be trending and I'm just curious if you're seeing that within your business.

然後是奇普，你通常對某些趨勢非常了解。我想知道長牛仔短褲是否正在流行，我只是好奇您是否在您的業務中看到了這一點。

Okay. Your second question will get smiles across the room, Bob, I can tell you that. To your first question, the way we look at -- so we don't look at trade inventory as a subject of discussion between our sales team and commercial teams and our wholesale customers. Wherever we have line of sight, we look at trade inventory relative to '19 or '21, depending on where we can and measured in months. And so far, Bob, I can speak to the U.S., we've seen trade inventory largely in line with '19 levels.

好的。 Bob，我可以告訴你，你的第二個問題會讓整個房間都笑起來。對於您的第一個問題，我們看待的方式——因此我們不將貿易庫存視為我們的銷售團隊和商業團隊以及我們的批發客戶之間討論的主題。無論我們在哪裡看到，我們都會查看相對於 '19 或 '21 的貿易庫存，這取決於我們可以在哪里以及以月為單位來衡量。到目前為止，鮑勃，我可以與美國交談，我們已經看到貿易庫存基本與 19 年的水平一致。

Talking about '19, I just wanted to make a point for everybody here. If you look at inventory growth in quarter 2, we talked about -- I talked about 29% over '21. But '21 is a very difficult comparison because of the supply chain issues. The way we look at it is, okay, how do -- what's inventory levels relative to '19? Inventory to '19 is up 24%.

談到'19，我只是想為這裡的每個人說明一點。如果你看看第二季度的庫存增長，我們談到了——我談到了 21 年的 29%。但是由於供應鏈問題，'21 是一個非常困難的比較。我們看待它的方式是，好吧，如何 - 相對於 19 年的庫存水平是多少？到 19 年的庫存增加了 24%。

If we take in the early receipts and our lead times have increased, and we're trying to ensure that we don't dissatisfy our consumers, that's about 10% of that 24% is early receipts, and then Beyond Yoga and the talent acquisition, another 3 percentage points. So if you back that out, inventory growth of 11% is broadly in line with our expectation of growth rate in the second half relative to '19.

如果我們接受早期收據並且我們的交貨時間增加了，並且我們正在努力確保我們不會讓我們的消費者不滿意，那麼這 24% 中的大約 10% 是早期收據，然後是 Beyond Yoga 和人才招聘，另外 3 個百分點。因此，如果你支持這一點，11% 的庫存增長與我們對下半年相對於 19 年的增長率的預期基本一致。

Chip, the question about long shorts.

奇普，關於長短褲的問題。

Bob, if that's what you're wearing, that is clearly what the trend must be.

鮑勃，如果這就是你穿的，那顯然是趨勢。

No, not tonight, but I was thinking about it.

不，不是今晚，但我在考慮。

Okay.

好的。

Thank you, Bob.

謝謝你，鮑勃。

Our next question comes from Dana Telsey of The Telsey Group.

我們的下一個問題來自 The Telsey Group 的 Dana Telsey。

Nice to see the progress. Two things. As you're thinking about the supply chain, it looks like the supply chain costs were higher in the second quarter than in the first quarter. How are you planning for the balance of the year going into the back half of the fiscal year? And then the wholesale strength is impressive, unpacking the wholesale strength, looking at price, door growth units, how does it differ by region? And what is your outlook?

很高興看到進展。兩件事情。當您考慮供應鏈時，第二季度的供應鏈成本似乎高於第一季度。您如何計劃進入本財年後半段的年度餘額？然後批發實力可圈可點，拆開批發實力，看價格，門增長單位，各地區有何不同？你的前景如何？

Dana, to your question on supply chain costs, I mean I think if you think about costs in quarter 2, air freight was higher, we're 80 basis points higher. It is a combination of 2 things. One, very low air freight in quarter 2 of last year. And this year, we were getting our product, just the seasonal product, to make sure that we were able to satisfy the [costs].

Dana，關於你關於供應鏈成本的問題，我的意思是，如果你考慮第二季度的成本，空運更高，我們高出 80 個基點。這是兩件事的結合。一，去年第二季度的空運非常低。今年，我們獲得了我們的產品，只是季節性產品，以確保我們能夠滿足[成本]。

Our expectation on air freight is that it begins to taper down. Supply chain issues are getting better that we're not going to be out of the wood this year. Hopefully, next year is getting better. The other costs are commodity costs. Commodity costs in the second half are higher than the first half as the cotton was. And we're offsetting that with higher AUR driven by pricing and mix.

我們對空運的預期是它開始減少。供應鏈問題越來越好，我們今年不會擺脫困境。希望明年會越來越好。其他成本是商品成本。下半年商品成本與棉花一樣高於上半年。我們正在通過定價和組合驅動的更高 AUR 來抵消這一點。

To your question about wholesale trends, it's difficult to, again, go around the world. Again, I think the fact that the brand's strong, Red Tab is really strong. The trends tailwind that Chip talked about, casualization and as people get back to the office is a more casual environment, I think definitely helps us. And I talked about prebook in Europe, which is a good indicator. So I think that's how we look at it.

對於您關於批發趨勢的問題，再次環遊世界是很困難的。同樣，我認為品牌強大的事實，Red Tab 真的很強大。 Chip 談到的趨勢順風，休閒化，隨著人們回到辦公室是一個更休閒的環境，我認為這肯定對我們有幫助。我談到了歐洲的 prebook，這是一個很好的指標。所以我認為這就是我們看待它的方式。

The only other thing I would add on the wholesale thing is the U.S. wholesale, we talked about this before, Dana. We put a lot of work into just remapping and building our footprint kind of over. So our focus on premiumizing our wholesale footprint has paid off in big ways. The target expansion has paid off in big ways. Getting incremental floor space in key customers like Kohl's and Macy's over the last 2 years or so has also played an important role.

我要在批發方面添加的唯一另一件事是美國批發，我們之前討論過這個，Dana。我們投入了大量工作來重新映射和建立我們的足跡。因此，我們專注於提升我們的批發業務足跡已經取得了很大的回報。目標擴張已獲得巨大回報。在過去 2 年左右的時間裡，在 Kohl's 和 Macy's 等主要客戶中獲得更多的樓面空間也發揮了重要作用。

So we're seeing that play out, and put that together with the strength of the brand and the brand shows up better in their stores, we're going to sell more Levi's and that's where our focus has been.

因此，我們看到了這種情況，並將其與品牌的實力結合在一起，並且該品牌在他們的商店中展示得更好，我們將銷售更多的李維斯，這就是我們的重點。

At this time, I'd like to turn the floor back over to the company for any closing remarks.

在這個時候，我想把發言權交還給公司，以便發表任何結束語。

All right. I want to thank everyone for dialing in and wish you all a happy and healthy summer and look forward to talking with you at the end of our third quarter. Thank you all very much.

好的。我要感謝大家撥通電話，祝大家度過一個快樂健康的夏天，並期待在第三季度末與您交談。非常感謝大家。

Thank you. This concludes today's conference call. Please disconnect your lines at this time.

謝謝你。今天的電話會議到此結束。此時請斷開您的線路。