Levi Strauss & Co (LEVI) 2023 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co., First Quarter Earnings Conference Call for the period ending February 26, 2023. (Operator Instructions) This 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 1 quarter on the company's website at levistrauss.com.

女士們先生們，美好的一天，歡迎參加 Levi Strauss & Co. 截至 2023 年 2 月 26 日的第一季度收益電話會議。（操作員說明）本次電話會議正在錄製中，不得全部或部分複制未經公司書面許可的部分。此電話會議通過互聯網進行直播，並且可以在公司網站 levistrauss.com 上收看網絡直播的重播，為期 1 個季度。

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 first fiscal quarter of 2023. Joining me on today's call are Chip Bergh, President and CEO of Levi Strauss; and Harmit Singh, our Chief Financial and Growth Officer. We have posted complete Q1 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 2023 年第一財季的結果。今天和我一起參加電話會議的有 Levi Strauss 總裁兼首席執行官 Chip Bergh；和我們的首席財務和增長官 Harmit Singh。我們已在我們網站 investors.levistrauss.com 的 IR 部分的收益發布中發布了完整的第一季度財務結果。也可以在我們的網站上找到今天電話會議網絡直播的鏈接。

We'd like to remind everyone that 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 our Form 10-K and the information included in our quarterly report on Form 10-Q that we filed today for the factors that could cause our results to differ.

我們想提醒大家，我們將在本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中預期的結果存在重大差異。請查看我們向美國證券交易委員會提交的文件，特別是 10-K 表格的風險因素部分以及我們今天提交的 10-Q 表格季度報告中包含的信息，以了解可能導致我們的結果不同的因素。

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. 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. Reconciliations of our non-GAAP measures to their most comparable GAAP measures are included in today's press release.

另請注意，本次電話會議的前瞻性陳述基於截至今日我們可獲得的信息，我們不承擔更新任何此類陳述的義務。在這次電話會議中，我們將討論某些非 GAAP 財務指標。這些非 GAAP 措施無意替代我們的 GAAP 結果。我們的非 GAAP 措施與其最具可比性的 GAAP 措施的對賬包含在今天的新聞稿中。

Finally, the 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 1 question at a time to give others the opportunity to have their questions addressed.

最後，整個電話會議正在我們的 IR 網站上進行網絡直播，並且很快就會在該網站上提供該電話會議的重播。今天的通話時間為 1 小時，因此請限制自己一次只提 1 個問題，以便其他人有機會提出他們的問題。

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

現在我想把電話轉給奇普。

Good morning, and welcome, everyone, to today's call. Coming off 26% constant currency growth in our year ago period, we are off to a solid start to the year. We grew first quarter revenue 9% in constant currency and 6% on a reported basis to $1.7 billion, while driving strong progress on inventory and advancing the key initiatives of our strategic plan. In our direct-to-consumer business, growth accelerated to 16% in constant currency, with record DTC sales, representing 42% of global revenues, 3 points ahead of last year.

早上好，歡迎大家參加今天的電話會議。繼去年同期 26% 的持續貨幣增長之後，我們今年開局良好。我們第一季度收入按固定匯率計算增長 9%，報告基礎上增長 6% 至 17 億美元，同時推動庫存方面的強勁進展並推進我們戰略計劃的關鍵舉措。在我們的直接面向消費者的業務中，按固定匯率計算增長加速至 16%，DTC 銷售額創歷史新高，佔全球收入的 42%，比去年高出 3 個百分點。

We delivered strong growth globally. Our international business grew 11% in constant currency, accounting for 56% of our total revenues. And even excluding the planned acceleration of wholesale shipments to support our U.S. ERP implementation, we achieved solid top line results and exceeded our expectations for EPS.

我們在全球實現了強勁增長。我們的國際業務按固定匯率計算增長了 11%，占我們總收入的 56%。甚至不包括計劃加速批發發貨以支持我們的美國 ERP 實施，我們取得了穩固的收入結果並超出了我們對 EPS 的預期。

Our performance this quarter clearly demonstrates our strategies are working, driven by the strength of our brands, the growth of our direct-to-consumer business and the benefits of a globally diversified business model. We continue to make progress against our 3 strategic priorities, leading with our brands, prioritizing our direct-to-consumer business and diversifying our portfolio. Please note that for the balance of our remarks, Harmit and I will reference year-over-year revenue growth in constant currency.

我們本季度的業績清楚地表明，在我們品牌實力、直接面向消費者業務的增長以及全球多元化業務模式的好處的推動下，我們的戰略正在發揮作用。我們繼續在我們的 3 個戰略重點方面取得進展，以我們的品牌為先導，優先考慮我們的直接面向消費者的業務並使我們的產品組合多樣化。請注意，對於我們評論的平衡，Harmit 和我將參考固定貨幣的同比收入增長。

Starting with our first priority, leading with our brands. Beginning with the Levi's brand, we grew market share again this quarter, achieving share leadership in the U.S. amongst the key 18- to 30-year old target consumer group, and we continue to grow share in women's denim bottoms closing the gap to the #1 position. In the quarter, the Levi's brand was up 9%, with our men's bottoms business delivering a record Q1 and women's bottoms achieving its highest revenue of any quarter.

從我們的首要任務開始，以我們的品牌領先。從 Levi's 品牌開始，本季度我們的市場份額再次增長，在美國 18 至 30 歲的主要目標消費群體中佔據領先地位，我們繼續增加女性牛仔褲的份額，縮小與# 1個位置。在本季度，Levi's 品牌增長了 9%，我們的男裝業務在第一季度創下了歷史新高，女裝業務實現了所有季度的最高收入。

Men's bottoms grew 9% with growth across all geographic segments, and we continue to fuel momentum in women's bottoms, which grew 18%. We're planning a steady cadence of newness through the year, and we continue to lean into trends, like with our newly launched women's XL balloon and '90s boots and a shift in rise from high to mid and wider leg openings, all of which drove solid growth in the quarter.

男裝下裝增長了 9%，所有地區的增長都在增長，我們繼續推動女裝下裝的增長勢頭，增長了 18%。我們計劃在這一年裡保持穩定的創新節奏，並繼續緊跟潮流，例如我們新推出的女式 XL 氣球和 90 年代靴子，以及從高幫到中幫和更寬的腿部開口的轉變，所有這些推動了本季度的穩健增長。

2023 is an important year for the company, marking our 170th anniversary and the 150th of our iconic 501, the blueprint for today's modern blue jeans. As we celebrate the heritage of our namesake brand, we're using this important milestone to cement the next generation of Levi's pants. In February, we launched our largest coordinated global marketing campaign, the greatest story ever worn. It kicked off during the grams where Bad Bunny also opened the show wearing a pair of vintage 501 and has helped drive nearly 3 billion impressions with consumers worldwide.

2023 年對公司來說是重要的一年，標誌著我們成立 170 週年，也是我們標誌性的 501 誕生 150 週年，這是當今現代藍色牛仔褲的藍圖。在慶祝我們同名品牌的傳統時，我們正在利用這一重要里程碑來鞏固下一代 Levi's 褲子。 2 月，我們發起了規模最大的全球協調營銷活動，這是有史以來最偉大的故事。它在 grams 期間拉開序幕，Bad Bunny 也穿著一雙復古 501 開場，並幫助推動了全球消費者近 30 億次印象。

After all these years, love for the 501 has only grown and continues to experience exponential growth, a solid proof point of the strength of the brand. Q1 net revenues were up 25% on top of 50% growth last year and revenues for the 501 this year are expected to reach close to $800 million, which is nearly 70% higher than pre-pandemic on a reported basis.

這麼多年過去了，對 501 的喜愛有增無減，而且呈指數級增長，這是品牌實力的有力證明。第一季度淨收入在去年增長 50% 的基礎上增長了 25%，今年 501 的收入預計將達到近 8 億美元，據報導比大流行前高出近 70%。

As we move through the year, we're infusing energy and newness into our iconic 501 through new launches for him and her inspired by historical fits. We also have a robust lineup of collaborations planned like our recent drop with the iconic streetwear brand, Stussy, which sold out in 1 hour and an exciting partnership with NewJeans, the popular K-Pop girl band furthering our ambition to engage younger consumers.

隨著這一年的推移，我們通過以歷史版型為靈感的男款和女款新品發布，為我們標誌性的 501 注入活力和新鮮感。我們還計劃了一系列強大的合作系列，例如我們最近與標誌性街頭服飾品牌 Stussy 的合作，該品牌在 1 小時內售罄，以及與流行的 K-Pop 女子樂隊 NewJeans 的令人興奮的合作夥伴關係，進一步推動了我們吸引年輕消費者的雄心。

Our global DTC business delivered a record quarter, up 16% versus a year ago, driven by positive comp sales and traffic growth across brick-and-mortar mainline and outlet stores in all geographic segments as well as e-commerce. Our U.S. DTC business also achieved another record quarter of revenue, with especially strong performance in our U.S. flagships and larger tourist destinations. We continued our store expansion in Q1, opening 25 Levi stores globally including 5 mainline doors here in the U.S.

我們的全球 DTC 業務創下了創紀錄的季度業績，同比增長 16%，這主要得益於所有地理區域的實體主線和直銷店以及電子商務的積極銷售和客流量增長。我們的美國 DTC 業務也實現了另一個創紀錄的季度收入，在我們的美國旗艦店和更大的旅遊目的地表現尤其強勁。我們在第一季度繼續擴張門店，在全球開設了 25 家 Levi 門店，其中包括美國的 5 家主線門店。

The investments we're making to elevate our consumers' digital experience and strengthen their digital connection to our brands are paying off. Even with consumers returning to our stores in large numbers, our e-commerce business grew 14%, driven by broad-based global growth and across all brands, including levi.com, which was up double digits. We continue to expand the breadth of our offering online while improving the user experience. Our loyalty membership was also up almost 40% in Q1 to nearly 25 million members, and this continues to translate to a higher level of spend among loyalty members.

我們為提升消費者的數字體驗並加強他們與我們品牌的數字聯繫而進行的投資正在取得回報。即使有大量消費者返回我們的商店，我們的電子商務業務也增長了 14%，這得益於廣泛的全球增長以及所有品牌的增長，包括增長了兩位數的 levi.com。我們繼續擴大在線產品的範圍，同時改善用戶體驗。我們的忠誠會員在第一季度也增長了近 40%，達到近 2500 萬，這繼續轉化為忠誠會員的更高水平的支出。

Our direct relationships with consumers and continued strong performance in our international wholesale business helped mitigate the impact of softer U.S. wholesale revenue. Global wholesale grew 4%, driven primarily by Asia and Canada. In the U.S., we accelerated approximately $100 million of revenue from Q2 to Q1 primarily due to our Q2 ERP implementation. As a result, our U.S. wholesale business grew low single digits on top of last year's strong 25% growth.

我們與消費者的直接關係以及我們國際批發業務的持續強勁表現有助於減輕美國批發收入疲軟的影響。全球批發增長 4%，主要受亞洲和加拿大的推動。在美國，我們從第二季度到第一季度的收入增加了大約 1 億美元，這主要是由於我們第二季度的 ERP 實施。因此，我們的美國批發業務在去年 25% 的強勁增長基礎上實現了低個位數增長。

Additionally, while our core consumer has generally remained resilient, we continue to experience demand softness from the value-oriented consumers, most notably impacting our Signature and Denizen brands.

此外，雖然我們的核心消費者總體上保持彈性，但我們繼續經歷以價值為導向的消費者的需求疲軟，最明顯地影響了我們的 Signature 和 Denizen 品牌。

As for our diversification strategy, we continued the strong momentum we have achieved in each of our major growth opportunities with international, women's, tops and our other brands, Dockers and Beyond Yoga, each contributing positively to the first quarter growth. International revenues were up 11% or 14% excluding Russia. Europe saw 6% growth, excluding Russia, with most markets growing including our largest markets of France, the U.K. and Germany returning to growth.

至於我們的多元化戰略，我們延續了我們在國際、女性、頂級和我們的其他品牌 Dockers 和 Beyond Yoga 的每個主要增長機會中取得的強勁勢頭，每個品牌都為第一季度的增長做出了積極貢獻。除俄羅斯外，國際收入增長了 11% 或 14%。歐洲增長了 6%，不包括俄羅斯，大多數市場都在增長，包括我們最大的市場法國、英國和德國恢復增長。

Asia continued its strong momentum, up 22% as we experienced growth across all markets other than China. In China, after the Zero COVID policy was lifted, we have seen a bounce back in traffic with our latest results trending back to pre-COVID levels.

亞洲繼續保持強勁勢頭，增長了 22%，因為我們在除中國以外的所有市場都經歷了增長。在中國，零 COVID 政策取消後，我們看到流量反彈，我們的最新結果趨向於恢復到 COVID 之前的水平。

Total company women's revenue grew 12%, led by strong double-digit growth in both the Americas and Asia. Our tops business grew 4%, following 16% growth last year with strong performance in our DTC channel, up 12% for both women and men. And our other brands performed well in the quarter.

在美洲和亞洲兩位數的強勁增長帶動下，公司女性總收入增長了 12%。我們的上衣業務增長了 4%，繼去年增長 16% 之後，我們的 DTC 渠道表現強勁，女裝和男裝增長了 12%。我們的其他品牌在本季度表現良好。

Dockers continued to build momentum with net revenues up 29% driven by broad-based double-digit growth across geographies and channels with DTC especially strong. Dockers' e-commerce remained robust with over 30% growth in part supported by increased repeat customers and the brand's loyalty program, which is now driving over 30% of sales in this channel across the U.S. and Europe.

Dockers 繼續保持增長勢頭，淨收入增長了 29%，這得益於跨地區和渠道的廣泛兩位數增長，其中 DTC 尤其強勁。 Dockers 的電子商務保持強勁增長超過 30%，這在一定程度上得益於回頭客的增加和該品牌的忠誠度計劃，該計劃目前推動了該渠道在美國和歐洲超過 30% 的銷售額。

And Beyond Yoga continues to make solid progress with revenues up 11%, driven by DTC, AURs and volume and continued success with the brand's expanded line of dresses. Our first 2 stores are off to a good start with 2 more planned to open in Q2, along with several further openings through the balance of the year.

Beyond Yoga 在 DTC、AUR 和銷量的推動下繼續取得穩步進展，收入增長 11%，並且品牌擴展的連衣裙系列繼續取得成功。我們的前 2 家門店開局良好，計劃在第二季度再開設 2 家，並在今年餘下時間進一步開設幾家門店。

Finally, Michelle Gass has now been with the company for 100 days as company President, responsible for the Levi's brand and our global commercial and digital operations. As I expected, she and I are working together really well with both of us determined to make this a very successful transition. She has not surprisingly, landed great inside the organization, establishing her leadership very clearly on our business.

最後，米歇爾·蓋斯 (Michelle Gass) 作為公司總裁在公司工作了 100 天，負責 Levi's 品牌以及我們的全球商業和數字運營。正如我所料，她和我合作得非常好，我們都決心使這次過渡非常成功。毫不奇怪，她在組織內表現出色，在我們的業務中確立了非常明確的領導地位。

For deep retail and e-commerce experience is obvious to the organization and she is already identifying both executional and organizational opportunities, which will help us accelerate profitable growth in our DTC women's and tops businesses. I was excited and confident when we hired Michelle as my eventual successor, and I'm even more optimistic about this company's future today than it was before.

因為深厚的零售和電子商務經驗對組織來說是顯而易見的，她已經確定了執行和組織機會，這將幫助我們加速 DTC 女裝和上衣業務的盈利增長。當我們聘請米歇爾作為我的最終繼任者時，我感到非常興奮和自信，而且我對這家公司今天的未來比以前更加樂觀。

And with that, I will turn the call now over to Harmit.

有了這個，我現在將把電話轉給 Harmit。

Thanks, Chip. We achieved solid results in Q1 with sales up 9%, excluding the benefit from accelerated U.S. wholesale shipments primarily related to the ERP transition, our business grew low single digits. Focus on our strategic initiatives and the structural shift in our business fueled our results with our international business and direct-to-consumer channels driving almost 70% of the growth in the quarter.

謝謝，奇普。我們在第一季度取得了穩健的業績，銷售額增長了 9%，不包括主要與 ERP 轉型相關的加速美國批發出貨的好處，我們的業務增長低個位數。專注於我們的戰略舉措和我們業務的結構轉變推動了我們的業績，我們的國際業務和直接面向消費者的渠道推動了本季度近 70% 的增長。

And we made significant progress reducing our inventory with total inventory dollars and units down meaningfully. We have achieved this in part by taking deliberate actions to clear inventory in the U.S. as well as reducing receipts in H1, putting us in a stronger position as we move through the balance of the year.

我們在減少庫存方面取得了重大進展，總庫存美元和單位顯著下降。我們在一定程度上是通過採取有意識的行動來清理美國的庫存以及減少上半年的收入來實現這一目標的，這使我們在今年餘下的時間里處於更有利的地位。

We remain committed to controlling costs with a focus on discretionary expenses while continuing to invest for the long term, including opening [18] new stores and our ERP implementation in the U.S. following 2 successful implementations in Canada and Mexico. And despite the beat we delivered this quarter, we are maintaining our annual revenue and EPS guidance range, reflecting a cautious outlook on the macro environment even as we remain excited about the momentum in our direct-to-consumer and international businesses and the progress we're making against our strategy.

我們仍然致力於控製成本，重點放在可自由支配的開支上，同時繼續進行長期投資，包括在加拿大和墨西哥成功實施 2 次後，在美國開設 [18] 家新店和實施 ERP。儘管我們本季度表現出色，但我們仍維持年度收入和 EPS 指導範圍，反映出對宏觀環境的謹慎展望，儘管我們對直接面向消費者和國際業務的勢頭以及我們取得的進展仍然感到興奮反對我們的策略。

I will now provide more color on our Q1 performance and 2023 outlook. Net revenue increased 9%, driven by continued global momentum in our direct-to-consumer business. International revenues were up 11% with greater-than-expected results across most markets, while the U.S. was up 6%. AURs were up mid-single digits, driven by broad-based growth across geographies, genders, categories and brands.

我現在將提供更多關於我們第一季度業績和 2023 年展望的顏色。受我們直接面向消費者業務的全球持續增長勢頭的推動，淨收入增長了 9%。國際收入增長了 11%，大多數市場的業績都好於預期，而美國增長了 6%。在跨地域、性別、類別和品牌的廣泛增長的推動下，AUR 上升了中等個位數。

Our direct-to-consumer channel sequentially accelerated with net revenues up 16%, driven by broad-based positive comp sales growth on top of extremely strong first quarter comp sales last year, driven by higher traffic and higher volumes across geographies, including in the U.S. and Europe.

我們的直接面向消費者的渠道連續加速，淨收入增長了 16%，這主要受去年第一季度極其強勁的同店銷售的基礎廣泛的積極同店銷售增長的推動，這是由不同地區的流量和銷量增加所推動的，包括美國和歐洲。

Adjusted reported gross margin was 55.8%, 360 basis points below last year's record 59.4% and but 120 basis points ahead of 2019 pre-pandemic levels. The deliberate actions that we took to reduce inventories in the U.S. that I mentioned a moment ago, coupled with a more promotional environment resulted in greater-than-expected pressure on gross margin in the short term, but the inventory level sets us up in a stronger position as we move through the year.

調整後的報告毛利率為 55.8%，比去年創紀錄的 59.4% 低 360 個基點，但比 2019 年大流行前水平高 120 個基點。剛才我提到的我們在美國採取的刻意去庫存的行動，加上更多的促銷環境導致短期內毛利率壓力大於預期，但庫存水平使我們處於隨著我們度過這一年，我們的地位更加穩固。

Gross margin benefited from price increases, lower air freight expenses and favorable channel mix despite a negative 40 basis points impact from accelerated wholesale shipments. However, those benefits were offset by several logic transitory factors, including a 200 basis point impact from higher product costs, reflecting record cotton prices, higher ocean freight and demo charges as well as nearly 300 basis points impact from lower full-price sales.

毛利率受益於價格上漲、空運費用下降和有利的渠道組合，儘管加速批發出貨量產生了 40 個基點的負面影響。然而，這些好處被幾個邏輯上的暫時性因素所抵消，包括產品成本上漲帶來的 200 個基點影響，反映了創紀錄的棉花價格、更高的海運費和演示費用，以及全價銷售下降帶來的近 300 個基點影響。

As we move through the year, the headwinds impacting gross margin should begin to recede, including from product costs given lower cotton pricing, freight and demurrage as well as lapping lower full-price selling and unfavorable FX from H2 last year. And the key contributors to our structurally higher margins that we have spoken to you about such as favorable channel, geographic and women's mix will continue to benefit margins.

隨著這一年的推移，影響毛利率的不利因素應該會開始消退，包括棉花價格下降導致的產品成本、運費和滯期費，以及去年下半年全價銷售下降和不利的匯率。我們已經與您談過的結構性較高利潤率的主要貢獻者，例如有利的渠道、地理和女性組合，將繼續使利潤率受益。

Adjusted SG&A expenses in the quarter was $757 million, up 7% from last year, driven primarily by a 4-wall investment in support of the higher DTC sales and A&P investment to support our 501 marketing campaign for which the spend is skewed to the first half of the year.

本季度調整後的 SG&A 費用為 7.57 億美元，比去年增長 7%，這主要是由於支持更高的 DTC 銷售額的 4 牆投資和支持我們的 501 營銷活動的 A&P 投資推動的，支出偏向於第一個半年。

While adjusted EBIT margin came in line with our expectation at 11%, down from 14.9% last year, the decrease was driven almost entirely by the decline in our gross margin rate. Adjusted diluted EPS was $0.34, with a $0.01 negative impact from foreign exchange.

雖然調整後的息稅前利潤率符合我們的預期，為 11%，低於去年的 14.9%，但下降幾乎完全是由於我們的毛利率下降。調整後攤薄每股收益為 0.34 美元，外匯帶來 0.01 美元的負面影響。

I'll now take you through our key highlights by segment. In the Americas, net revenues grew 7%, driven by the strength in DTC. The channel was up low double digits in the U.S. and achieved our second quarter of record revenue. Overall, Canada was up double digits and Latin America grew high single digits, driven by increases across nearly all markets in the region. Europe returned to growth with net revenues up 6%, excluding Russia, on top of 21% growth in the prior year, driven by our DTC business.

我現在將按細分帶您了解我們的主要亮點。在美洲，受 DTC 的強勁推動，淨收入增長了 7%。該頻道在美國的收入增長了兩位數，並在第二季度創下了創紀錄的收入。總體而言，加拿大增長了兩位數，拉丁美洲增長了高個位數，這得益於該地區幾乎所有市場的增長。在我們的 DTC 業務的推動下，歐洲在去年 21% 的增長基礎上恢復增長，淨收入增長 6%（不包括俄羅斯）。

Geographically, growth was seen across most countries. Our largest markets, France, the U.K. and Germany were collectively up low single digits, while Spain and Italy were up double digits. Strong demand for the Levi's brand in Asia continued with revenues accelerating to 22% growth, driven by all channels and markets outside China, led by India.

從地域上看，大多數國家都出現了增長。我們最大的市場，法國、英國和德國共同實現了低個位數的增長，而西班牙和意大利則實現了兩位數的增長。亞洲對 Levi's 品牌的強勁需求持續增長，收入加速增長至 22%，這主要受中國以外的所有渠道和市場的推動，其中印度為首。

Asia ex-China was up 28%. As Chip mentioned, we are seeing trends improve in China and now expect China to turn profitable this year. Asia operating margins also expanded 160 basis points to 18.5% due to higher revenues and lower SG&A. And operating margin dollars were an all-time record.

亞洲（中國除外）上漲 28%。正如 Chip 所提到的，我們看到中國的趨勢正在改善，現在預計中國今年將實現盈利。由於收入增加和 SG&A 減少，亞洲營業利潤率也擴大了 160 個基點至 18.5%。營業利潤率創歷史新高。

Now looking to our balance sheet and cash flows. As discussed over the past year, as we execute the ERP transition and as a result of our actions to reduce receipts in H1, we are rapidly reducing our inventory levels. Q1 inventory was up 33% on a dollar basis, a 25% sequential improvement from last quarter of up 58%.

現在看看我們的資產負債表和現金流量。正如過去一年所討論的那樣，隨著我們執行 ERP 轉型以及我們採取行動減少上半年的收入，我們正在迅速降低庫存水平。按美元計算，第一季度庫存增長 33%，較上一季度 58% 的環比增長 25%。

Core product represents more than 2/3 of our total inventory. We continue to expect sequential improvement quarter-over-quarter with quarter 2 being substantially lower than Q1 and expect levels to be in line with sales growth by the end of the year.

核心產品占我們總庫存的 2/3 以上。我們繼續預計季度環比改善，第二季度將大大低於第一季度，並預計到今年年底水平將與銷售增長保持一致。

Adjusted free cash flow was negative $272 million in the first quarter, driven by the timing of capital and the implementation of our ERP. As a result of this, we used our revolver to support our cash position. As we sequentially improve our inventory through the year, we expect free cash flow to turn positive, enabling us to pay back our ABL draw.

第一季度調整後的自由現金流為負 2.72 億美元，這是受資本時機和 ERP 實施的推動。因此，我們使用左輪手槍來支持我們的現金頭寸。隨著我們全年依次改善庫存，我們預計自由現金流將轉正，使我們能夠償還 ABL 提款。

End of quarter net debt was approximately $834 million, and overall liquidity was $1.2 billion. Our leverage ratio remained strong, although it did increase to 1.4x compared to 1.1x at the end of Q1 '22 due to our negative free cash flow. In the quarter, we returned approximately $56 million in capital to shareholders, including dividends of $48 million, up nearly 20% from the first quarter of prior year. And in Q2 '23, the company declared a dividend of $0.12 per share in line with last quarter.

季度末淨債務約為 8.34 億美元，整體流動資金為 12 億美元。我們的槓桿率仍然很高，儘管由於我們的負自由現金流，它確實從 22 年第一季度末的 1.1 倍增加到 1.4 倍。本季度，我們向股東返還了約 5600 萬美元的資本，其中包括 4800 萬美元的股息，比去年第一季度增長近 20%。在 2023 年第二季度，公司宣布派發每股 0.12 美元的股息，與上一季度一致。

Moving on to our outlook. Even though we exceeded expectations in Q1, given it is early in the year and the macro uncertainty, we are maintaining a cautious stance and reaffirming our fiscal 2023 revenue and EPS outlook. We continue to expect net revenues between $6.3 billion and $6.4 billion, reflecting reported growth of 1.5% to 3% year-over-year and EPS in the range of $1.30 to $1.40.

繼續我們的展望。儘管我們在第一季度超出了預期，但鑑於今年年初和宏觀不確定性，我們仍保持謹慎態度並重申我們 2023 財年的收入和每股收益前景。我們繼續預計淨收入在 63 億美元至 64 億美元之間，反映出報告的同比增長 1.5% 至 3%，每股收益在 1.30 美元至 1.40 美元之間。

While we're maintaining our guidance overall, the way in which we get there has changed from previous expectation. We expect the strong momentum in our global DTC and international businesses to offset softer wholesale trends in the U.S. and Europe as retailers continue to be cautious with their open to buy. As a result for the year, we expect nearly 60% of Levi's brand revenue coming from international and DTC as a mix of our total business in the mid-40% range.

雖然我們總體上維持我們的指導，但我們實現目標的方式與之前的預期有所不同。我們預計我們全球 DTC 和國際業務的強勁勢頭將抵消美國和歐洲疲軟的批發趨勢，因為零售商繼續對他們的購買持謹慎態度。作為今年的結果，我們預計近 60% 的 Levi's 品牌收入來自國際和 DTC，占我們總業務的 40% 左右。

Our DTC channel and international businesses are both fast growing with tremendous opportunity given our underpenetration in these categories and importantly, our high gross margin businesses. In reported dollars, we continue to expect low single-digit growth in the Americas for the full year as strong growth in our U.S. DTC business and Latin America will be tampered by U.S. wholesale. We are pleased to see Europe return to growth in Q1, driven by the strength in DTC with trends coming in better than expected.

我們的 DTC 渠道和國際業務都在快速增長，鑑於我們在這些類別中的滲透率低，而且重要的是，我們的高毛利率業務帶來了巨大的機會。以報告的美元計算，我們繼續預計美洲全年將實現低個位數增長，因為美國 DTC 業務和拉丁美洲的強勁增長將受到美國批發的影響。我們很高興看到歐洲在第一季度恢復增長，這得益於 DTC 的強勁勢頭，趨勢好於預期。

The outlook has improved, but it's still within the previously guided range of up low single digits. And based on the stronger trends we're seeing in Asia, we now expect low double-digit growth and improvement from mid-single-digit growth in our previous guide. As I mentioned last quarter, we continue to expect '23 to be a tale of 2 halves, with the first half weaker and the second half considerably stronger given a number of factors, including the year, we are lapping promotional levels, record cotton prices impacting COGS in H1 and supply chain disruptions progressively getting better.

前景有所改善，但仍處於先前指導的低個位數上漲範圍內。基於我們在亞洲看到的更強勁趨勢，我們現在預計會出現兩位數的低增長，並且會比我們之前指南中的中等個位數增長有所改善。正如我在上個季度提到的那樣，我們繼續預計 23 年將分為兩半，上半年較弱，下半年由於多種因素而相當強勁，包括今年，我們正在接近促銷水平，創紀錄的棉花價格影響上半年的 COGS 和供應鏈中斷逐漸好轉。

I will now provide color on Q2 and the full year. For the second quarter, the over delivery reported in Q1 will tamper growth in Q2 but will not have an impact on the first half or full year. In Q2, we now expect revenues down high single digits to low double digits. Given that we are in our ERP implementation and associated downtime, our ability to ship product in the U.S. in excess of what we have contemplated in our guide is limited.

我現在將提供第二季度和全年的顏色。對於第二季度，第一季度報告的超額交付將影響第二季度的增長，但不會對上半年或全年產生影響。在第二季度，我們現在預計收入會從高個位數下降到低兩位數。鑑於我們正在實施 ERP 和相關的停機時間，我們在美國運送超出我們指南中預期的產品的能力是有限的。

Q2 gross margin is expected to meaningfully improve versus Q1 as a result of a higher contribution from DTC, but will be down slightly to last year's, and we continue to expect SG&A to be up mid-single digits relative to a year ago.

由於 DTC 的貢獻增加，第二季度的毛利率預計將比第一季度顯著提高，但將略低於去年，我們繼續預計 SG&A 將比去年同期增長中等個位數。

In respect to the full year, given the higher levels of promotion than we previously anticipated, we now expect full year gross margin to be down approximately 50 basis points versus prior year's 57.5%. We remain confident that second half gross margin will sequentially improve as headwinds moderate. And we now expect the full year tax rate to be low to mid-teens versus our prior expectations of mid- to high teens.

就全年而言，鑑於促銷水平高於我們之前的預期，我們現在預計全年毛利率將比去年的 57.5% 下降約 50 個基點。我們仍然相信，隨著逆風緩和，下半年毛利率將連續改善。我們現在預計全年稅率將低於我們之前對中高青少年的預期。

Prior to Q&A, I'd like to make 3 key points. First, while we expect to face continuing challenges through the year, the strength of our brand gives us confidence in sustaining our top line momentum and our Q1 performance serves as a proof point that our strategies are working. Europe's return to growth as well as our strengthening international performance and broad-based momentum in our direct-to-consumer business are all fueling our profitable growth.

在問答之前，我想提出 3 個關鍵點。首先，雖然我們預計今年將面臨持續的挑戰，但我們品牌的實力讓我們有信心保持我們的收入增長勢頭，而我們第一季度的業績證明我們的戰略正在奏效。歐洲的恢復增長以及我們加強的國際業績和我們直接面向消費者業務的廣泛發展勢頭都在推動我們的盈利增長。

Two, gross margin will progressively improve as we move through the year and headwinds abate and we expect to end the year with gross margins above 57% on our way to our long-term goal of 60%.

第二，隨著我們度過這一年，逆風減弱，毛利率將逐步提高，我們預計到年底毛利率將超過 57%，從而實現我們 60% 的長期目標。

And three, we will continue to focus on controlling the controllables by reducing discretionary spending while continuing to invest in growing DTC as we open new doors, grow comp sales and accelerate e-commerce.

第三，我們將繼續專注於通過減少可自由支配的支出來控制可控因素，同時隨著我們打開新的大門、增加 comp 銷售和加速電子商務，繼續投資於增長 DTC。

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 Bob Drbul of Guggenheim.

（操作員說明）我們的第一個問題來自古根海姆的 Bob Drbul。

If I could just focus a little on inventories and gross margins to start off the call. On the inventory side, can you just talk about sort of where you ended up in the up 33% versus your plan? Where do you think inventory levels are, specifically at your U.S. wholesale partner levels? And then on the gross margin side, tying it together with the inventory. Can you just talk about the expectations on -- I mean, Q2 gross margins versus your assumptions around the promotional activity, specifically in the U.S.?

如果我能稍微關註一下庫存和毛利率來開始通話。在庫存方面，您能否談談與計劃相比最終增加 33% 的情況？您認為庫存水平在哪裡，特別是在您的美國批發合作夥伴級別？然後在毛利率方面，將其與庫存聯繫在一起。你能談談對 - 我的意思是，第二季度毛利率與你對促銷活動的假設，特別是在美國的預期嗎？

Thanks, Bob. You asked the question that we thought you'd ask. So let's start with it. Overall, we made meaningful progress on inventory, as I mentioned in my prepared remarks, it's down meaningfully, both in dollar and unit terms, is sequentially improving. If you recall, we said when we reported Q4 that that's the peak and it gets better, which is what is happening.

謝謝，鮑勃。你問了我們認為你會問的問題。讓我們從它開始吧。總體而言，正如我在準備好的發言中提到的那樣，我們在庫存方面取得了有意義的進展，無論是按美元還是按單位計算，它都在顯著下降，並且正在逐步改善。如果你還記得的話，我們在報告第四季度時說過，那是高峰期，而且情況會好轉，這就是正在發生的事情。

We do believe that by the sequential improvement continues into Q2, and as I mentioned, inventory is largely clean. We did get rid of inventory to the extent we could. That did hurt margins, I'll come to margins in a while. But I think the inventory improvement is largely driven by the fact that we proactively cut H1 buys, and we were able to clear inventory. To your question about, is this largely driven by the U.S.? Yes, unequivocally. It is U.S. U.S., for example, inventory levels at the end of Q4 were up 90% year-over-year and Q1 is down to 35% year-over-year.

我們確實相信，連續改善會持續到第二季度，正如我提到的，庫存基本上是乾淨的。我們確實在力所能及的範圍內擺脫了庫存。那確實損害了利潤率，我會在一段時間內達到利潤率。但我認為庫存改善主要是由於我們主動削減了 H1 採購，並且我們能夠清理庫存。關於你的問題，這主要是由美國推動的嗎？是的，毫不含糊。以美國為例，第四季度末庫存水平同比增長90%，第一季度同比下降35%。

So it's a dramatic improvement in the U.S., and that's why we think that it gets better progressively as the year progresses from that perspective.

所以這是美國的一個巨大進步，這就是為什麼我們認為從這個角度來看，隨著時間的推移，它會逐漸變得更好。

To your question about gross margin, the miss against our expectation was largely because we proactively were able to clear inventory as well as promotional levels were slightly higher than we anticipated. Quarter 1 is not a great read, if you look at it last year for full year gross margins. It will record gross margins last year when basically, there was very little promotion. Gross margins were at all-time high at 59.4%.

關於您關於毛利率的問題，未達到我們的預期主要是因為我們能夠主動清理庫存以及促銷水平略高於我們的預期。如果您查看去年的全年毛利率，第一季度不是很好的讀物。它將在去年創下毛利率，當時基本上沒有什麼促銷活動。毛利率為 59.4%，創歷史新高。

We ended the year at 57.5% a year ago. And to what's happened on gross margins in the quarter? Let's start with what I call the good guys, and a lot of these good guys are going to be here for a while, which is the fact that we took prices up. We are seeing lower airfreight and a favorable channel mix. So we quantify all that, it's about 150 basis points that we see continue through the year.

一年前我們以 57.5% 結束了這一年。本季度的毛利率發生了什麼變化？讓我們從我所說的好人開始，很多這些好人會在這裡待一段時間，這就是我們抬高價格的事實。我們看到較低的空運和有利的渠道組合。因此，我們對所有這些進行量化，我們看到這一年持續約 150 個基點。

And then what I call or what we call transitory, it will receive as the year progresses. 200 basis points is a combination of commodity, increased cotton in H1 was bought. Our product was bought when cotton was an all-time high, that along with some demurrage costs, et cetera, is about 200 basis points. That begins to recede as we step into H2, about -- I think the tailwind is about, I would say, 170, 180 basis points because there is some inventory that we bought in H1 that we will clear in H2.

然後我稱之為或我們稱之為短暫的東西，它將隨著時間的推移而收到。 200個基點是大宗商品的組合，增加了H1棉花的買入量。我們的產品是在棉花價格創歷史新高時購買的，再加上一些滯期費等，約為 200 個基點。當我們進入 H2 時，它開始消退，我認為順風大約是 170、180 個基點，因為我們在 H1 購買了一些庫存，我們將在 H2 清除。

And the rest is promotion levels, which were much higher than a year ago. There are 2 pieces. One, last year this time, we didn't really sell anything under the full price. Now we're selling something a little higher and then promotion is high. We expect -- and we're conservatively anticipating this. This is difficult to predict, but we're anticipating that promotion levels continue through the year.

剩下的就是晉升水平，比一年前高了很多。有 2 件。第一，去年這個時候，我們並沒有真正以全價出售任何東西。現在我們賣的東西稍微高一點，然後促銷就高了。我們預計 - 我們保守地預計這一點。這很難預測，但我們預計這一年的促銷水平會持續下去。

So as you think about the year, annual expectation on gross margin, I think we're going to be about -- relative to last guidance about 70 basis points down at the end of the year and that's largely driven by higher promotion levels, which we expect offset by better channel mix. BTG is going to be higher. International is going to be higher. Europe is rebounding nicely. So I think that's how we're thinking about gross margins.

因此，當你考慮今年時，毛利率的年度預期，我認為我們將 - 相對於去年年底的最後指導下降約 70 個基點，這主要是由更高的促銷水平推動的，這我們預計會被更好的渠道組合所抵消。 BTG 會更高。國際化會更高。歐洲反彈良好。所以我認為這就是我們考慮毛利率的方式。

And as you know, a large piece of what we sell is core. We brought a lot of newness into our assortment with the 501 150th anniversary and all that helps. I hope that addresses your question, Bob.

如您所知，我們銷售的很大一部分是核心產品。我們在 501 150 週年之際為我們的產品系列帶來了很多新意，這一切都有幫助。我希望這能解決你的問題，鮑勃。

Our next question comes from the line of Matthew Boss of JPMorgan.

我們的下一個問題來自摩根大通的 Matthew Boss。

So maybe, Chip, could you just update us on health of the Levi's brand, maybe what you're seeing in the U.S. and Europe marketplace today as it relates to the denim category? And then, Harmit, to your points before, any change in the pricing strategy just given the dynamic consumer backdrop out there?

所以也許，Chip，你能否向我們介紹一下 Levi's 品牌的健康狀況，也許你今天在美國和歐洲市場上看到的與牛仔布類別相關的情況？然後，Harmit，就您之前的觀點而言，鑑於那裡的動態消費者背景，定價策略是否有任何變化？

Sure. So let me first talk the category since that's part of your question. And I think you all know that the data that we get on a quarterly basis is U.S. only, still a major part of our business. We don't get the rest of the world on a quarterly basis. But sort of as we had thought would expect the category is back to growth again in the quarter -- in the most recent quarter is up 1%. That's on top of a prior year quarter of up 16%.

當然。所以讓我先談談類別，因為這是你問題的一部分。我想你們都知道我們每季度獲得的數據僅限於美國，這仍然是我們業務的主要部分。我們不會按季度了解世界其他地區的情況。但有點像我們原先預期的那樣，該類別在本季度再次恢復增長——最近一個季度增長了 1%。這是在去年同期增長 16% 的基礎上。

So if you remember in the last call, we talked about how coming out of the pandemic, we saw a big spike in denim. And then we had 2 quarters of kind of mid-single-digit softness. We're back to growth now, and that's good. That 1% growth in the category -- compare that to what we reported in our U.S. DTC business with record volume that was up low double digits. So we are clearly gaining share.

所以如果你還記得在上次電話中，我們談到瞭如何從大流行中走出來，我們看到牛仔布的大幅上漲。然後我們有兩個季度的中個位數柔軟度。我們現在恢復了增長，這很好。該類別 1% 的增長——與我們在美國 DTC 業務中報告的增長量創紀錄的低兩位數相比。所以我們顯然正在獲得份額。

We talked about it in the prepared remarks. We are now the outright leader in men's and women's 18- to 30-year old jeans market after gaining 1 point of value share in the past 12 months and past 3 months and we continue to grow share in women's denim bottoms, closing the gap. We are now knocking on the door being the #1 brand in the U.S. That has not happened in my entire 11.5 years at this company. And we continue to have momentum while others are struggling.

我們在準備好的評論中談到了它。在過去 12 個月和過去 3 個月獲得 1 個百分點的價值份額後，我們現在是 18 至 30 歲男士和女士牛仔褲市場的絕對領導者，並且我們繼續增加女士牛仔褲的份額，縮小差距。我們現在正在敲門成為美國第一品牌。這在我在這家公司的整個 11.5 年中都沒有發生過。當其他人在苦苦掙扎時，我們繼續保持勢頭。

In terms of brand equity, a couple of things. I guess the first thing I would point to is just the strength of our overall DTC business where we are in control of the brand and how we engage with the consumer and how we show up. It shows up in the business results. Our global DTC business delivered a record quarter. We were up 16% versus prior year. We comped positively in all regions. Our e-commerce business was up double digits, too.

在品牌資產方面，有幾件事。我想我要指出的第一件事就是我們控製品牌的整體 DTC 業務的實力，以及我們如何與消費者互動以及我們如何出現。它顯示在業務結果中。我們的全球 DTC 業務創造了創紀錄的季度業績。我們比上一年增長了 16%。我們在所有地區都取得了積極的成績。我們的電子商務業務也增長了兩位數。

I think that kind of speaks to -- consumers are still coming to this brand. And one other data point is as we do our brand equity studies around the globe, we do get at price perception for Levi's, and this is price perception, right?

我認為這種說法 - 消費者仍然來到這個品牌。另一個數據點是，當我們在全球範圍內進行品牌資產研究時，我們確實獲得了對 Levi's 的價格認知，這是價格認知，對嗎？

But Levi's jeans is a leader in being worth paying more for, for quality and longevity. And we -- as a result of that, we're pretty well positioned to continue to navigate through this inflationary period. And I don't think we said it in the prepared remarks, but our AURs were up mid-single digits again this quarter despite the promotional environment.

但 Levi's 牛仔褲在質量和耐用性方面處於領先地位，物有所值。而我們——因此，我們完全有能力繼續度過這個通貨膨脹時期。而且我不認為我們在準備好的評論中說過，但儘管有促銷環境，本季度我們的 AUR 再次上漲了中個位數。

On Europe, specifically, Europe revenues were up 2%. I think we said this in the prepared remarks, that's up 6% excluding Russia, sequentially improving versus last quarter, again, driven by the strength of DTC, which was up 16%, excluding Russia. Comps were positive every month across North and South Europe. They were also positive in the quarter in mainline and outlet stores as well as e-commerce.

具體而言，在歐洲，歐洲收入增長了 2%。我想我們在準備好的評論中說過，不包括俄羅斯在內，這一數字增長了 6%，與上一季度相比連續改善，再次受到 DTC 實力的推動，DTC 增長了 16%，不包括俄羅斯。北歐和南歐每個月的業績都是積極的。他們在本季度的主線和直銷店以及電子商務方面也表現積極。

Every market in Europe grew with the exception of a couple of the smaller markets in the Nordics. Our largest markets, France, U.K., Germany, were all collectively up low single digits. Spain and Italy were up double digits. So Europe is doing a little bit better than what we thought it was going to do going into the year and -- but it's still kind of in the range of what we guided originally.

除了北歐的幾個較小市場外，歐洲的每個市場都在增長。我們最大的市場，法國、英國、德國，都以低個位數增長。西班牙和意大利上漲了兩位數。因此，歐洲在今年的表現比我們預期的要好一些，而且 - 但它仍然在我們最初指導的範圍內。

I guess the last thing I would say about Europe, just like the U.S., we're pretty cautious about our wholesale business there as retailers are playing their open-to-buy budgets pretty close to their best given all of the macroeconomic uncertainty.

我想我最後要說的是關於歐洲，就像美國一樣，我們對那裡的批發業務非常謹慎，因為考慮到所有宏觀經濟的不確定性，零售商的公開購買預算非常接近最佳水平。

And Matt, to your question about any change in pricing strategy. If the question behind the question is are we taking prices down? No, that's not what's happening. But we're not necessarily pricing up in today's environment. And so we're promoting smartly, like most retailers. We're not necessarily #1 in promotions. We are competitive, but we are not necessarily 1. And we've got a lot of newness in our assortment. And so that's how we are attracting traffic, et cetera, where we can price, for example, the organic stuff that we bring in, we price thoughtfully. But overall, we're being mindful of the fact that the consumer generally, especially in the western part of the world are just are tight on spending.

Matt，關於定價策略的任何變化的問題。如果問題背後的問題是我們是否正在降低價格？不，這不是正在發生的事情。但我們不一定在今天的環境中定價。因此，我們像大多數零售商一樣巧妙地進行促銷。我們不一定是促銷活動的第一名。我們很有競爭力，但我們不一定是 1。我們的產品種類很多。這就是我們吸引流量的方式，等等，我們可以在其中定價，例如，我們帶來的有機產品，我們會深思熟慮地定價。但總的來說，我們注意到這樣一個事實，即消費者總體上，尤其是世界西部地區的消費者，支出都比較緊張。

Our next question comes from the line of Jay Sole of UBS. Please go ahead, Jay.

我們的下一個問題來自瑞銀的 Jay Sole。請繼續，傑伊。

Harmit, I heard you say you expect SG&A dollars to be up mid-single digits in Q2. I'm not sure I caught what you expect SG&A dollars to do for the full year and how that impacts your operating margin guidance. If possible, could you just expand on that a little bit for us, please?

Harmit，我聽說你說你預計第二季度的 SG&A 美元將增長中個位數。我不確定我是否了解了您對全年 SG&A 美元的預期，以及這將如何影響您的營業利潤率指導。如果可能的話，你能為我們稍微擴展一下嗎？

Yes. I would say low single to mid-single on a full year basis. And largely, the way we are thinking about SG&A, Jay, is wherever we can cut discretionary expenses, we are. We have really tightened new hires, we have tightened things like travel, and this is business critical, et cetera, et cetera. I think where we're spending the dollars is as we open new doors, we'll have on a net basis, 80 doors this year between our 3 brands and that is going to fuel the direct-to-consumer business, which is important.

是的。我會說全年的低單到中單。在很大程度上，我們考慮 SG&A 的方式，Jay，我們可以削減可自由支配的費用。我們確實收緊了新員工，我們收緊了差旅之類的事情，這對業務至關重要，等等。我認為我們花錢的地方是我們打開新的大門，我們將在淨基礎上，今年我們的 3 個品牌之間有 80 扇門，這將推動直接面向消費者的業務，這很重要.

Advertising a little bit, especially with the 501 campaign and on basic infrastructure, like the ERP, which is being implemented as we speak in the U.S. as well as the distribution capacity that we're gearing up for the long term.

做一點廣告，尤其是在 501 活動和基礎設施方面，比如我們在美國正在實施的 ERP，以及我們正在為長期準備的分銷能力。

So I think those are the areas where the spending is, which drives a little bit of the SG&A, but where we can tighten, we'll continue to tighten.

所以我認為這些是支出所在的領域，這推動了一些 SG&A，但我們可以收緊的地方，我們將繼續收緊。

Our next question -- one moment. Pardon me, our next question comes from the line of Ike Boruchow of Wells Fargo.

我們的下一個問題——請稍等。對不起，我們的下一個問題來自富國銀行的 Ike Boruchow。

Maybe Harmit, can you talk a little bit more about the implications the ERP has had on U.S. wholesale? Just maybe specifically, can you quantify the dollars that were pulled forward into the first quarter and the dollars that will be pulled out of the second quarter? Maybe specifically, could you give us embedded in that down high single to low double, what is the U.S. wholesale decline planned in 2Q? And then any other color on U.S. wholesale, whether it's order books or planned in the back half, it would also be great.

也許 Harmit，你能多談談 ERP 對美國批發的影響嗎？也許具體來說，您能否量化第一季度的資金和第二季度的資金？也許具體來說，你能否告訴我們，從高單到低雙，美國第二季度計劃的批發下降是多少？然後在美國批發的任何其他顏色，無論是訂單簿還是後半部分計劃，也都很棒。

Yes. Sure. Ike, when we were talking about a quarter ago, I think we had anticipated the timing of the ERP and the discussions we were having with our key customers, the range of the sales push between Q1 and Q2 would be about $80 million to $100 million. And as we mentioned on the call, I think the timing is about $100 million between Q2 and Q1. I do want to thank our wonderful customers because they were able to work with us in getting this -- just as we work through the timing of the ERP.

是的。當然。艾克，當我們在一個季度前談論時，我認為我們已經預料到 ERP 的時間以及我們與主要客戶進行的討論，第一季度和第二季度之間的銷售推動範圍約為 8000 萬至 1 億美元.正如我們在電話會議上提到的，我認為第二季度和第一季度之間的時間約為 1 億美元。我確實要感謝我們出色的客戶，因為他們能夠與我們合作來實現這一目標——就像我們在 ERP 的時間安排上一樣。

The ERP is currently being implemented. So our DCs, for example, are shut as we speak, and we are in the process of cutting over. I think to your question about Q2, a large piece of the $100 million is what we actually take from Q2 and pull it in Q1. So Q2 will be impacted with that. And that's why as we think about what to expect in Q2, we're guiding down high single digit, low double digit, that obviously also has a positive impact on gross margin.

目前正在實施 ERP。因此，例如，我們的 DC 在我們說話時已關閉，我們正在進行切換。我認為關於你關於第二季度的問題，1 億美元中的很大一部分是我們實際從第二季度拿走並在第一季度提取的。所以第二季度將受到影響。這就是為什麼當我們考慮第二季度的預期時，我們正在引導高個位數、低兩位數，這顯然也對毛利率產生了積極影響。

That's why we're saying gross margins will be down a little bit, not what you saw in Q1. So I think that's how we're thinking about it. We do expect the impact of the ERP to largely be in H1 because the ramp-up really happens in May, which is the last month of the quarter. And so by the time we get into quarter 3, I think we should have this behind us.

這就是為什麼我們說毛利率會下降一點，而不是你在第一季度看到的那樣。所以我認為這就是我們考慮的方式。我們確實預計 ERP 的影響主要出現在上半年，因為增長確實發生在 5 月，也就是本季度的最後一個月。所以當我們進入第 3 季度時，我認為我們應該把它拋在腦後。

And as you know, we have implemented the ERP in Canada and Mexico and is largely a very standardized module that's being implemented in the U.S., and the benefits are largely going to be in data insight and simplification for our operators. That's what we're seeing in the 2 markets and that's the benefit that we see. And it is foundational to everything else we're doing, and especially as we grow e-commerce and we grow our direct-to-consumer business, this gives us the foundational base to actually accelerate automation and connect with the consumer a lot better.

如您所知，我們已經在加拿大和墨西哥實施了 ERP，並且在很大程度上是一個非常標準化的模塊，正在美國實施，其好處主要在於我們的運營商的數據洞察力和簡化。這就是我們在這兩個市場上看到的，這就是我們看到的好處。它是我們所做的一切的基礎，尤其是在我們發展電子商務和發展直接面向消費者的業務時，這為我們提供了真正加速自動化並更好地與消費者聯繫的基礎。

Our next question comes from the line of Dana Telsey of the Telsey Group.

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

As you think about the performance of denim versus non denim, what did you see there? And Chip, you've given out in the past the overall apparel category, how that performed versus denim? What are you seeing there? And can you just expand upon with wholesale? How do you expect that to progress through the year? And is there a difference between the department stores or the discounters and what you're seeing in order rates?

當您思考牛仔布與非牛仔布的性能時，您看到了什麼？ Chip，你過去曾給出過整體服裝類別，與牛仔布相比表現如何？你在那裡看到什麼？你能擴大批發嗎？您預計這一年將如何發展？百貨公司或折扣店與您所看到的訂單率有什麼不同嗎？

Yes, there's a lot there. So first of all, you're right, I normally do give the apparel category, and I didn't this time, but I've got the number here in front of me. Apparel was up 2% -- this is U.S. data again for Q1, recall, I said that the denim category was up 1% off of a base of plus 16%. Apparel was up 2%, I don't have what the base period is for total apparel, but it was up slightly ahead of denim, and that's consistent with everything we're seeing and hearing that some of the more dressier categories is doing a little bit better. We're even seeing that in our own business.

是的，那裡有很多。所以首先，你是對的，我通常會給出服裝類別，但這次我沒有，但我面前有這個數字。服裝上漲了 2%——這又是美國第一季度的數據，回想一下，我說過牛仔布類別在 16% 的基礎上上漲了 1%。服裝上漲了 2%，我不知道整體服裝的基期是多少，但它略高於牛仔布，這與我們所看到和聽到的一切一致，一些更講究的類別正在做好一點點。我們甚至在自己的業務中也看到了這一點。

Our non-denim business has done pretty well. It was up low double digits as well. Some of our best-selling items right now are chinos and cargoes and things like that. We're seeing it really -- those categories moved really well. What else was in the question?

我們的非牛仔業務做得很好。它也上漲了兩位數。我們現在最暢銷的一些商品是斜紋棉布褲和工裝褲之類的。我們真的看到了——這些類別移動得非常好。問題中還有什麼？

Yes. So I think, Dana, you asked about our expectations for wholesale. As you know, or I just want to clarify, if you think of the U.S. wholesale business and the year we're lapping is important. The first half, I think the U.S. wholesale business was up close -- a little over 20%, 25% in Q1, 20% in Q2. And so we are lapping strong numbers, and then we have the ERP timing. Our expectation for the year, and this is wholesale in total -- our expectation for the year is down in the low to mid-single digits, but made up by our direct-to-consumer business.

是的。所以我想，Dana，你問過我們對批發的期望。如你所知，或者我只是想澄清一下，如果你想到美國的批發業務，我們正在研磨的那一年很重要。上半年，我認為美國批發業務接近——略高於 20%，第一季度為 25%，第二季度為 20%。因此，我們獲得了強勁的數據，然後我們有了 ERP 時機。我們對今年的預期，這是批發總額——我們對今年的預期下降到中低個位數，但由我們的直接面向消費者的業務彌補。

So I think if you think of the business structurally, this is going to -- our direct-to-consumer business, which is about 42%, but for Levi's, it's close to 45%, continues to get stronger. And strategically, that's really what we said in Investor Day. This is a business that should head towards 55%. So it gets stronger, the gross margins are better, et cetera. So I think '23 is a good reset year from that perspective. And we're taking -- it's unfortunate what's happening in the Western world in terms of the macroeconomics. But if the company emerges structurally a better company at the end of the year, it's a good thing.

所以我認為，如果你從結構上考慮業務，這將會——我們的直接面向消費者的業務，大約佔 42%，但對於李維斯來說，它接近 45%，繼續變得更強大。從戰略上講，這正是我們在投資者日所說的。這是一項應該達到 55% 的業務。所以它變得更強大，毛利率更好，等等。所以我認為從這個角度來看，23 年是一個很好的重置年。我們正在接受——不幸的是，西方世界在宏觀經濟方面正在發生的事情。但是，如果公司在年底在結構上成為一家更好的公司，那是一件好事。

Yes. The only other thing I would add on top of that, Dana, is in talking with our wholesale customers, virtually all of the customers are keeping their open-to-buy budgets pretty tight given the uncertainty. And then the only other thing I would add is that we are seeing pretty significant softness in our signature Denizen business. So that value consumer is really being squeezed. There's definitely a bifurcation happening where the lower end consumer is making hard choices and either trading down or just not buying denim. And -- but that middle-income consumer amount, which is kind of the sweet spot for the Levi's brand is doing well and is still buying denim, and that is driving the growth of the Levi's business, the growth of our DTC business and the strength that we are seeing in our direct-to-consumer business.

是的。除此之外，Dana，我要補充的唯一一件事是在與我們的批發客戶交談時，考慮到不確定性，幾乎所有客戶都將他們的公開購買預算保持得很緊。然後我要補充的另一件事是，我們看到我們標誌性的 Denizen 業務非常疲軟。因此，價值消費者確實受到了擠壓。低端消費者正在做出艱難的選擇，要么降價交易，要么乾脆不購買牛仔布，這肯定會出現分歧。而且——但是中等收入的消費者數量，這是 Levi's 品牌的最佳選擇，表現良好並且仍在購買牛仔布，這正在推動 Levi's 業務的增長，我們 DTC 業務的增長以及我們在直接面向消費者的業務中看到的實力。

Our next question comes from the line of Paul Lejuez of Citi.

我們的下一個問題來自花旗銀行的 Paul Lejuez。

It's Tracy Kogan filling in for Paul. I don't think I heard you talk about 3Q, and I was just wondering if you're still expecting high single-digit sales growth there? And if you have anything like order books to support or give you confidence in that growth?

Tracy Kogan 代替了 Paul。我想我沒有聽到你談論第三季度，我只是想知道你是否仍然期待那裡的高個位數銷售增長？如果您有訂單簿之類的東西來支持或讓您對這種增長充滿信心？

Yes. No. Tracy, good to connect. We don't, as you know, guide quarterly. We talk about the year. But if you do the math, our H2 is up higher than mid-single digits. And so in H2, we'll close approach probably the low end of our growth algorithm. And so we're beginning to progress this. What we've said earlier is a tale of 2 halves. The first half weaker, the second half stronger. It's also driven by the year we're lapping.

是的。不，特蕾西，很適合聯繫。如您所知，我們不會每季度發布一次指南。我們談論那一年。但如果你算一下，我們的 H2 高於中個位數。因此，在下半年，我們可能會接近增長算法的低端。所以我們開始推進這個。我們之前所說的是一個分為兩半的故事。上半場弱，下半場強。它也受到我們研磨的年份的驅動。

But if you go back and benchmark it to, say, '19, the difference between the first half and the second half is not that dramatic. It's just the year that we're lapping. Plus our expectation really is things get a little better as the year progresses, and we are able to work out all the inventory issues, et cetera, et cetera.

但是，如果您返回並以 19 年為基準對其進行基準測試，則上半場和下半場之間的差異並不那麼顯著。這只是我們正在研磨的一年。此外，我們的預期確實是隨著時間的推移，情況會有所好轉，我們能夠解決所有庫存問題，等等。

Great. And just on freight, I think you said airfreight was a tailwind, but ocean freight was a headwind this quarter. I guess it netted out as a headwind. I'm just wondering how you're thinking about those pieces of freight for the remainder of the year?

偉大的。就貨運而言，我想你說空運是順風，但本季度海運是逆風。我想它是逆風而行。我只是想知道您如何考慮今年剩餘時間的運費？

I mean, H2 becomes a tailwind, both pieces of freight, and that's how we're thinking through it.

我的意思是，H2 成為順風，兩件貨物，這就是我們正在思考的方式。

Our next question comes from the line of Laurent Vasilescu of BNP Paribas.

我們的下一個問題來自法國巴黎銀行的 Laurent Vasilescu。

Harmit, I just want to square away some math here. I think in your prepared remarks, you mentioned that DTC should be about mid-40% of the -- percentage points of the overall sales for the year. Does that imply global wholesale would be down high single digits? I might be off with the math, but just wanted to confirm. And if that's the case, how much of that decline is coming from U.S. wholesale? And then maybe drilling down further. Just curious, I think last quarter, you mentioned that mass was down high teens. Just curious to know how you're thinking -- how it performed this quarter and how you're thinking about it for the full year?

Harmit，我只想在這裡解決一些數學問題。我認為在您準備好的發言中，您提到 DTC 應該佔全年總銷售額的 40% 左右。這是否意味著全球批發量將下降高個位數？我可能不了解數學，但只是想確認一下。如果是這樣，那麼下降的幅度中有多少來自美國批發？然後可能進一步深入研究。只是好奇，我想上個季度，你提到質量下降了十幾歲。只是想知道您的想法 - 本季度的表現如何以及您對全年的想法如何？

Yes. So the mid-40s is largely Levi's. If you think of the company, Dockers has about 30% of the business is DTC. And Beyond Yoga, it's half the business. But if you would think of the company, we are a little better than 42% at the end of the year. That's the projection. So if you do run the math, our view is global wholesale is down in the low mid-single digit and it's largely the U.S. and Europe, where, as Chip mentioned, our customers are cautious in the open to buy.

是的。所以 40 年代中期主要是 Levi's。如果你想到這家公司，Dockers 大約有 30% 的業務是 DTC。除了瑜伽，它是業務的一半。但如果你想到公司，我們會比年底的 42% 好一點。這就是投影。因此，如果你計算一下，我們的觀點是全球批發量下降到中低個位數，而且主要是美國和歐洲，正如 Chip 提到的那樣，我們的客戶在公開購買時持謹慎態度。

And we are building that into our expectations and really focused on driving our direct-to-consumer business. If things change, obviously, you'll see that roll into the numbers from that perspective.

我們正在將其納入我們的期望，並真正專注於推動我們的直接面向消費者的業務。如果事情發生變化，很明顯，你會從那個角度看到它進入數字。

Very helpful. And any color on the mass channel, how it performed this quarter and how you're thinking about for the year?

很有幫助。大眾頻道上的任何顏色，它在本季度的表現如何以及您對這一年的看法如何？

Yes. So the mass channel was down about 13%. And in quarter 4 was down 19%. It was lapping a 10% growth quarter in 2022. And we're planning it down. We're planning it down low double digits. And again, we sell to 2 wonderful customers, largely Signature and Denizen and they're cautious in the open to buy, and we're reinforcing it. The good news for us, is one of the customers, we are taking women's out -- denims and women's out of doors and really working with them to grow our Levi's Red Tab and that does help premiumize the brand.

是的。因此，大眾頻道下降了約 13%。第四季度下降了 19%。它在 2022 年實現了 10% 的增長。我們正在計劃它。我們計劃將其降低兩位數。再一次，我們賣給了兩個很棒的客戶，主要是 Signature 和 Denizen，他們在公開購買時持謹慎態度，我們正在加強這一點。對我們來說，好消息是其中一位客戶，我們正在推出女裝——牛仔布和戶外女裝，並真正與他們合作發展我們的 Levi's Red Tab，這確實有助於提升品牌知名度。

Our next question comes from the line of Brooke Roach of Goldman Sachs.

我們的下一個問題來自高盛的布魯克羅奇。

I was wondering if you could talk to the sell-through trends that you're seeing in U.S. wholesale for the core Red Tab business and how consumer engagement with the brand at wholesale may be differing relative to the stronger trends that you're seeing in North America DTC? And then Harmit, can you clarify, is the more cautious view on wholesale a function of a more cautious open to buy? Or has there been a slowdown in sell-through trends versus your prior expectations that may be driving this outlook?

我想知道您是否可以談談您在美國批發市場看到的核心 Red Tab 業務的銷售趨勢，以及消費者對批髮品牌的參與度與您在美國看到的更強勁趨勢有何不同北美 DTC？然後 Harmit，你能澄清一下，對批發的更謹慎的看法是更謹慎的購買開放的功能嗎？或者與您之前可能推動這一前景的預期相比，銷售趨勢是否有所放緩？

Yes. So March is, as you all know, it's a very difficult month to read because of tax refund checks, the weather. And so I think as we think about the quarter -- April, for example, it's early days, but we've seen traffic come back and things are looking a lot better.

是的。眾所周知，由於退稅支票和天氣原因，3 月是一個非常難以閱讀的月份。因此，我認為當我們考慮這個季度時——例如，4 月，現在還處於早期階段，但我們已經看到流量恢復了，情況看起來好多了。

To your question about -- and our direct-to-consumer business, which is a real representation of how the brand is showing up and our assortment is doing well. To your question about the cautious view on wholesale is largely the open to buy that we're thinking that's driving that decision. So if that opens up, things get better, and that will probably, over time, as inventories tighten should also improve the promotional environment.

關於你的問題 - 以及我們的直接面向消費者的業務，這是品牌如何出現以及我們的分類表現良好的真實代表。對於你對批發的謹慎看法的問題，我們認為這是推動該決定的主要原因是購買開放。因此，如果開放，情況就會好轉，而且隨著時間的推移，庫存收緊也可能會改善促銷環境。

Our next question comes from the line of Alex Straton of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Straton。

Just a couple on my end. First, I totally understand that promos are higher year-over-year given the change in environment. But I'm wondering how promos change sequentially in the latest quarter compared to the prior and maybe how you would characterize the broader environment there? And then secondly, just on inventory quickly. I want to understand if that in line by the end of the year with forward sales growth is a longer time line than I think you may have previously communicated? I think most brands are saying they'll be clean entering the back half. So I'm just wondering what's different on Levi here?

我這邊只有一對。首先，我完全理解鑑於環境的變化，促銷比去年同期更高。但我想知道與上一季度相比，最近一個季度的促銷活動是如何連續變化的，也許你會如何描述那裡更廣泛的環境？其次，只是快速庫存。我想知道到年底與預期銷售增長一致的時間線是否比我認為您之前傳達的時間更長？我想大多數品牌都說他們會乾淨地進入後半部分。所以我只是想知道 Levi 有什麼不同？

Yes. Yes. I mean Alex, our view is we're going to be clean. We cleaner today than we were a quarter ago, we'll be clean by quarter 2. It's not about is the inventory clean? It's just a question about -- our view on inventory is, we think, quarter 2 the growth rate relative to a year ago is mid- to high teens, slightly higher than what we anticipated a quarter ago, just given where U.S. wholesale is. But as you know, in U.S., the inventory is largely poor and so that's guiding our thinking on getting inventory back to sales levels from that perspective.

是的。是的。我的意思是亞歷克斯，我們的觀點是我們會變得乾淨。我們今天比一個季度前更乾淨，我們將在第二季度之前變得乾淨。這與庫存是否乾淨無關？這只是一個問題——我們對庫存的看法是，我們認為，第二季度相對於一年前的增長率是中高位，略高於我們一個季度前的預期，只是考慮到美國的批發情況。但正如你所知，在美國，庫存基本上很差，因此這引導我們從這個角度考慮讓庫存恢復到銷售水平。

In terms of the promotional environment, we've just been cautious. It's difficult to predict. And so in our latest expectation of gross margins, we have built in a slightly higher promotion level in H2. Now if that doesn't pan out, obviously, that translates into higher gross margins, but that's really factored in into expectations.

在促銷環境方面，我們一直很謹慎。很難預測。因此，在我們對毛利率的最新預期中，我們在下半年建立了略高的促銷水平。現在，如果這沒有成功，很明顯，這會轉化為更高的毛利率，但這確實被納入了預期。

The only other thing I would add is keep in mind that the base period promotional environment changed pretty dramatically between first half and second half. Last year, first half, there were all the supply chain issues and a lot of people didn't even have enough products. So everything was being sold at full price and then the second half, it started to get a lot more promotional. So the year-over-year change is quite dramatic in the first half for us. The year-over-year change in the second half should be much less dramatic and have less of an overall impact on the gross margin.

我要補充的唯一另一件事是請記住，在上半年和下半年之間，基期促銷環境發生了相當大的變化。去年上半年，供應鏈出現問題，很多人甚至沒有足夠的產品。所以一切都以全價出售，然後下半年，它開始得到更多的促銷。因此，上半年的同比變化對我們來說非常顯著。下半年的同比變化應該不那麼劇烈，對毛利率的整體影響也較小。

I think if you're trying to understand, Alex, the progression of gross margin. So last year, Q1 was 59.4, ended at 57 to the point Chip was making because it got promotional as the year progressed. This year, Q1 is 55.8. 200 of that is really commodities, which gets better as we step into H2. So that's why we think there is progression in gross margin getting us back to slightly over 57% as we close the year plus, I think the promotional environment gets better. It's not going to be as promotional view. But we're building in some promotions in H2, but it's not going to be as bad as Q1 and Q2.

我想如果你想了解，亞歷克斯，毛利率的進展。所以去年，Q1 是 59.4，以 57 結束，達到了 Chip 的水平，因為隨著時間的推移它得到了促銷。今年，Q1 是 55.8。其中 200 是真正的商品，隨著我們進入 H2，它會變得更好。因此，這就是為什麼我們認為毛利率有所提高，使我們在年底結束時回到略高於 57% 的原因，我認為促銷環境會好轉。它不會作為促銷視圖。但是我們在下半年進行了一些促銷活動，但不會像第一季度和第二季度那樣糟糕。

Our next question comes from the line of Chris Nardone of Bank of America.

我們的下一個問題來自美國銀行的 Chris Nardone。

2 quick questions. On second half guidance, can you just talk about your confidence in maintaining that strong DTC momentum on a potentially lower promotional environment compared to the last second half? And then a quick question on Asia. You increased your guidance up low double digits, and that's on top of mid-20s percent growth last year. Is there any way you can elaborate on where you're seeing the most strength in Asia and how much is coming from new doors versus comps?

2 個快速問題。關於下半年的指導，您能否談談與上個下半年相比，您有信心在可能較低的促銷環境中保持強勁的 DTC 勢頭？然後是關於亞洲的快速問題。你將你的指導增加了兩位數，這是在去年 20% 左右的增長率之上。有沒有什麼方法可以詳細說明您在亞洲看到的最強大的地方以及新門與競爭的多少？

Yes. Yes. Thanks, Chris. Asia. As you know, growing Asia is one of our strategic initiatives. And the last 2 years, the noise has been just COVID with some country closed, et cetera, et cetera. So I think Q1 is a good read from that perspective now. Q1 doesn't reflect the reopening of China because that happened largely in February. But most markets in Asia are off to a great start. And you can see the leverage in our operating margin as well as operating dollars, whether it's India, whether it's Australia, whether it's other South Asian countries. We had a good quarter from that perspective.

是的。是的。謝謝，克里斯。亞洲。如您所知，發展亞洲是我們的戰略舉措之一。在過去的兩年裡，噪音只是 COVID 一些國家關閉等等。所以我認為現在從這個角度來看 Q1 是一個很好的讀物。第一季度並未反映中國的重新開放，因為這主要發生在 2 月份。但亞洲的大多數市場都有一個良好的開端。你可以看到我們的營業利潤率和營業收入的槓桿作用，無論是印度、澳大利亞還是其他南亞國家。從這個角度來看，我們有一個很好的季度。

The brand is strong, it's largely a DTC business and the direct-to-consumer business is -- or the growth is largely driven by comp sales performance, which is the good news. And we haven't really factored in any upside should -- what we see in China continue or sustain itself for the rest of the year. So that's the Asia story.

這個品牌很強大，它主要是 DTC 業務，而直接面向消費者的業務是——或者說增長主要是由 comp 銷售業績推動的，這是個好消息。我們還沒有真正考慮到任何上行空間——我們在中國看到的情況會在今年餘下時間繼續或維持下去。這就是亞洲的故事。

You had another question, Chris -- strong DTC. One, we think Asia sustains itself as the year progresses because the brand is strong. Consumer's a lot more resilient. It's a younger consumer, so I think all that really helps.

你還有另一個問題，克里斯——強 DTC。第一，我們認為隨著時間的推移，亞洲能夠維持下去，因為品牌強大。消費者的彈性要大得多。這是一個年輕的消費者，所以我認為這一切真的很有幫助。

To your point on DTC, DTC last year did slow down in the second half, largely Europe was down. Q3 and Q4 was down, and we have seen Europe rebound. The consumer in Europe, our view is a lot stronger than everybody anticipated. And while wholesale customers continue to be tight on the open to buy, we see the DTC growth continue.

就你關於 DTC 的觀點而言，去年 DTC 在下半年確實放緩了，主要是歐洲出現了下滑。第三季度和第四季度下跌，我們看到歐洲反彈。歐洲的消費者，我們的觀點比大家預期的要強烈得多。雖然批發客戶繼續緊張購買，但我們看到 DTC 繼續增長。

The other piece is we do have a new Chief Digital Officer, and Michelle is putting a lot more emphasis on driving our retail performance and I think those things definitely will benefit us because there is low-hanging fruit. And as we continue to focus on improving execution, our operators on the ground do a great job, but there are clear opportunities. And I think as we continue to optimize that, we will continue to see DTC performance improve.

另一件事是我們確實有一位新的首席數字官，米歇爾更加重視推動我們的零售業績，我認為這些事情肯定會讓我們受益，因為有唾手可得的果實。隨著我們繼續專注於提高執行力，我們的實地操作員做得很好，但也有明顯的機會。而且我認為隨著我們繼續優化它，我們將繼續看到 DTC 性能的提高。

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

謝謝。此時，我想將電話轉回給公司以徵求任何結束語。

Thank you, Latif, and I want to thank everyone for dialing in and for your questions, and we'll look forward to talking with you at the end of the next quarter. Thanks very much. Have a nice weekend.

謝謝你，Latif，我要感謝大家的撥入和你的問題，我們期待在下個季度末與你交談。非常感謝。祝你周末愉快。

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

謝謝。今天的電話會議到此結束。此時請斷開您的線路。