Levi Strauss & Co (LEVI) 2023 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 28, 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 one quarter on the company's website, levistrauss.com.

女士們、先生們，美好的一天，歡迎參加 Levi Strauss & Co. 截至 2023 年 5 月 28 日的第二季度收益電話會議。（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本公司書面許可。本次電話會議正在通過互聯網進行廣播，並且可以在公司網站 levistrauss.com 上重播四分之一的網絡廣播。

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

我現在想將電話轉給李維斯公司 (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 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 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.

感謝您今天參加我們的電話會議，討論 2023 年第二財季的業績。與我一起參加今天電話會議的有李維斯 (Levi Strauss) 總裁兼首席執行官 Chip Bergh；以及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二季度財務業績。今天電話會議的網絡廣播鏈接也可以在我們的網站上找到。

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 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中做出前瞻性陳述，其中涉及風險和不確定性。實際結果可能與我們前瞻性陳述中預期的結果存在重大差異。請查看我們向 SEC 提交的文件，特別是我們今天提交的 10-K 表的風險因素部分以及我們今天提交的 10-Q 表季度報告中包含的信息，了解可能導致我們的結果出現差異的因素。

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.

另請注意，本次電話會議的前瞻性陳述基於我們今天掌握的信息，我們不承擔更新任何這些陳述的義務。在本次電話會議中，我們將討論某些非公認會計準則財務指標。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

Reconciliations of our non-GAAP measures to their most comparable GAAP measures are included in today's press release. 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. Please note for the balance of the remarks, Chip and Harmit will reference year-over-year revenue growth in constant currency.

我們的非公認會計原則衡量標準與最具可比性的公認會計原則衡量標準的調節結果包含在今天的新聞稿中。最後，本次電話會議的全部內容將在我們的 IR 網站上進行網絡直播，並且很快將在網站上提供本次電話會議的重播。請注意，對於評論的平衡，Chip 和 Harmit 將參考按固定匯率計算的同比收入增長。

Today's call is scheduled for one hour, so please limit yourself to one question at a time to give others the opportunity to have their questions addressed. And now I'd like to turn the call over to Chip.

今天的電話會議預計持續一小時，因此請一次只回答一個問題，以便其他人有機會得到解決。現在我想把電話轉給奇普。

Thank you, and welcome, everyone, to today's call. We delivered a solid quarter, in line with our expectations. Our results reflect 2 very different dynamics in our business. On one hand, strong DTC and international and on the other, continued softness in U.S. wholesale, which I will address in a moment.

謝謝大家，歡迎大家參加今天的電話會議。我們交付了一個穩定的季度業績，符合我們的預期。我們的結果反映了我們業務中兩種截然不同的動態。一方面，DTC 和國際市場強勁，另一方面，美國批發市場持續疲軟，我稍後將討論這一點。

Revenues for the quarter were down 9%. However, this was mostly attributable to the $100 million shift in revenue from Q2 into Q1, primarily due to the ERP implementation in the U.S., which we discussed on our last call. Excluding this shift, Q2 was down 2% versus prior year, and first half revenue was flat against a difficult plus 23% comparison versus a year ago.

該季度收入下降 9%。然而，這主要歸因於收入從第二季度轉移到第一季度的 1 億美元，這主要是由於美國的 ERP 實施所致，我們在上次電話會議中對此進行了討論。排除這一變化，第二季度較去年同期下降 2%，上半年收入與去年同期持平，較去年同期增加 23%。

Our strategic growth priorities are performing at or above our plan. Our DTC business, the most premium expression of the Levi's brand globally continues to perform very well, up 14% in Q2 with broad-based positive comp growth and AURs up mid-single digits.

我們的戰略增長重點是達到或超過我們的計劃。我們的 DTC 業務（Levi's 品牌在全球範圍內最優質的體現）繼續表現出色，第二季度增長 14%，公司業績全面正增長，AUR 上升至中個位數。

The continued strength of our DTC First Strategy which grew to a record 44% of total sales in the first half, underscores our confidence in unlocking Levi's tremendous brand value. Our international business also remained strong, growing 8% or 10%, excluding Russia, led by continued momentum in Asia and Latin America.

我們的 DTC 優先戰略持續強勁，上半年銷售額佔總銷售額的 44%，創下歷史新高，這突顯了我們對釋放 Levi's 巨大品牌價值的信心。我們的國際業務也保持強勁，在亞洲和拉丁美洲持續增長的帶動下，增長了 8% 或 10%（不包括俄羅斯）。

International has been the fastest-growing part of our business over the last few years, and it represents one of our largest opportunities going forward. However, this strength in international and DTC has been more than offset by a soft U.S. wholesale business.

過去幾年來，國際業務一直是我們業務增長最快的部分，也是我們未來最大的機遇之一。然而，國際和 DTC 的這種優勢已被美國批發業務的疲軟所抵消。

Today, U.S. wholesale represents less than 30% of our total revenues, down from 40% a decade ago as our strategic focus has been to grow DTC and international. And while first half U.S. wholesale revenue was down from last year on difficult comparisons, U.S. wholesale revenues are still up 2% versus 2019 with gross margins up as well.

如今，美國批發業務占我們總收入的比例不到 30%，低於十年前的 40%，因為我們的戰略重點是發展 DTC 和國際化。儘管由於難以比較，上半年美國批發收入較去年有所下降，但與 2019 年相比，美國批發收入仍增長 2%，毛利率也有所上升。

There are 2 main drivers to the slowdown of our U.S. wholesale business. First, the macro effects of higher inflation in a slowing U.S. economy has put increased pressure on the price-sensitive consumer. Second, as we have mentioned for several quarters, our inventory backlog created supply chain challenges in our U.S. distribution centers, resulting in our inability to fulfill all demand.

我們的美國批發業務放緩有兩個主要驅動因素。首先，美國經濟放緩導致通脹上升的宏觀影響給對價格敏感的消費者帶來了更大的壓力。其次，正如我們在幾個季度中提到的那樣，我們的庫存積壓給我們的美國配送中心的供應鏈帶來了挑戰，導致我們無法滿足所有需求。

The lower fill rate resulted in higher customer out of stocks and less newness on the floor the last few quarters. We're taking a number of actions to address these issues, regain competitiveness and restore growth to our U.S. wholesale business.

過去幾個季度，較低的填充率導致更多的客戶缺貨，以及更少的新產品。我們正在採取一系列行動來解決這些問題，恢復競爭力並恢復我們美國批發業務的增長。

First, we are taking surgical price reductions on a select number of our Red Tab Tier-3 wholesale offerings, which we know are most price-elastic and where the price gap versus competition widened too far. Importantly, we are not taking price reductions in U.S. mainline full-price stores nor the vast majority of our U.S. wholesale assortment, including the 501 and women's fashion fits, which are all less price-sensitive.

首先，我們正在對選定數量的 Red Tab Tier-3 批發產品進行手術降價，我們知道這些產品價格彈性最大，而且與競爭對手的價格差距拉得太大。重要的是，我們不會對美國主流全價商店以及我們的絕大多數美國批發產品進行降價，包括 501 和女式時尚套裝，這些產品對價格的敏感度較低。

Finally, we are not taking any price reductions on our international businesses where we continue to demonstrate strong pricing power as seen by the results. Second, with the ERP implementation behind us and as our inventory levels continue to improve, we are seeing an improvement in order fill rates, now nearly back to historical levels, which will result in better selling for us and in-stock positions at retail.

最後，我們不會對我們的國際業務進行任何降價，從結果來看，我們繼續展示出強大的定價能力。其次，隨著 ERP 的實施以及我們的庫存水平不斷提高，我們看到訂單履行率有所改善，現在幾乎回到了歷史水平，這將導致我們更好的銷售和零售庫存狀況。

Further, this will allow us to deliver the strong newness we have lined up to hit floors in July for the key back-to-school and holiday seasons. We are confident that these actions will improve our U.S. wholesale results going forward. Now let's turn to the progress we achieved in executing our 3 strategic priorities. Starting with our first priority, leading with our brands.

此外，這將使我們能夠在 7 月份關鍵的返校季和假期期間推出我們準備推出的強勁新品。我們相信，這些行動將改善我們未來美國的批發業績。現在讓我們來看看我們在執行三項戰略重點方面取得的進展。從我們的首要任務開始，以我們的品牌為主導。

Due to the ERP shift, I'll speak to the brand's results for the full first half. The Levi's brand grew low single digits on top of 22% growth last year. Levi's bottoms grew low single digits with women's growth slightly stronger than men's. We continue to drive denim trends with products like our Superlow Boot, giving women more options for looser fits with lower rises.

由於 ERP 的轉變，我將談談該品牌上半年的業績。 Levi's 品牌在去年 22% 的增長基礎上實現了較低的個位數增長。李維斯 (Levi's) 下裝的增長幅度較低，其中女裝增長略強於男裝。我們繼續通過 Superlow Boot 等產品推動牛仔趨勢，為女性提供更多寬鬆低腰的選擇。

In the U.S., we're seeing strong demand with the 100,000-plus income consumer, particularly in our mainline stores, helping drive share gains in the premium end of the jeans category in the U.S. We've also maintained our share leadership with the key 18- to 30-year old demographic. And for U.S. jeans overall, we gained market share across men's and women's.

在美國，我們看到收入超過 100,000 的消費者的強勁需求，特別是在我們的主線商店，這有助於推動美國高端牛仔褲類別的份額增長。我們還保持了我們的市場領先地位18 至 30 歲的人口。就美國整體牛仔褲而言，我們獲得了男裝和女裝的市場份額。

The greatest story (inaudible) marketing campaign and celebration of the 501's 150th anniversary, generated billions of impressions globally and drove strong 501 demand with revenues up low double digits in the first half against more than 40% growth last year.

最偉大的故事（聽不清）營銷活動和 501 150 週年慶祝活動在全球產生了數十億次印象，並推動了 501 的強勁需求，上半年收入增長了兩位數，而去年的增長超過 40%。

Moving on to our second priority being DTC First. As I mentioned, global DTC delivered strong double-digit growth in Q2, led by broad-based positive comp sales and traffic growth across company-operated stores in all geographic segments. U.S. DTC was also strong, led by our mainline stores, which saw continued strength in flagship and tourist destinations.

接下來我們的第二個優先事項是 DTC First。正如我所提到的，全球 DTC 在第二季度實現了兩位數的強勁增長，這主要得益於所有地理區域的公司自營商店的廣泛積極的銷售和客流量增長。在我們的主線商店的帶動下，美國 DTC 也表現強勁，旗艦店和旅遊目的地的表現持續強勁。

We're also seeing the benefits of our investments in digital and the impact of our new Chief Digital Officer, Jason Gowans. Our e-commerce business grew 21% in Q2, driven by both higher traffic and better conversion. Strength was global and across all brands as we continue to expand the breadth of our offering online while improving the user experience and customer journey.

我們還看到了數字化投資的好處以及新任首席數字官 Jason Gowans 的影響。在流量增加和轉化率提高的推動下，我們的電子商務業務在第二季度增長了 21%。隨著我們繼續擴大在線產品的廣度，同時改善用戶體驗和客戶旅程，我們的優勢遍及全球和所有品牌。

Consistent with driving growth in DTC and e-commerce, we just opened a state-of-the-art digital fulfillment center for the East Coast in Kentucky and will begin shipping from there this month. This completes bringing our U.S. e-commerce business in-house, which will drive more agility and inventory positioning, reducing lead times, improving customer satisfaction and accelerating digital margin expansion over time.

為了推動 DTC 和電子商務的增長，我們剛剛在肯塔基州東海岸開設了一個最先進的數字履行中心，並將於本月從那裡開始發貨。這完成了我們的美國電子商務業務的內部化，這將提高靈活性和庫存定位，縮短交貨時間，提高客戶滿意度並隨著時間的推移加速數字利潤的擴張。

We are also continuing to expand our loyalty program with over 26 million members, up 40% over prior year. Loyalty member transactions and average transaction values grew across all segments, a positive signal as we drive continued growth in membership. Overall, our digital and e-commerce businesses remain underpenetrated versus peers and the channel represents a tremendous sales and profit opportunity for the company.

我們還繼續擴大我們的忠誠度計劃，會員數量已超過 2600 萬，比上年增長 40%。所有細分市場的忠誠會員交易和平均交易價值均有所增長，這是我們推動會員數量持續增長的積極信號。總體而言，與同行相比，我們的數字和電子商務業務的滲透率仍然較低，該渠道為公司帶來了巨大的銷售和利潤機會。

Our third strategic priority is to continue to diversify the business. On a first half basis, our total company women's and tops revenues grew 1% and 3%, respectively both on top of more than 20% growth last year. Women's was driven largely by the Levi's brand, particularly in Asia. In addition to ongoing strength in denim fits for Her, including lower rises, women's also saw growth from newly launched dresses, cargoes and overalls. Comps were driven by strength in Levi's Men's.

我們的第三個戰略重點是繼續業務多元化。上半年，我們公司女裝和上衣總收入在去年超過 20% 的基礎上分別增長了 1% 和 3%。女裝主要由李維斯品牌推動，尤其是在亞洲。除了女士牛仔裝（包括低腰牛仔褲）的持續強勢外，女裝也因新推出的連衣裙、工裝褲和工裝褲而有所增長。 Levi's 男裝的實力推動了競爭。

We remain enthusiastic about our opportunity to significantly grow these businesses as we continue to diversify our offerings. As for our other brands, Beyond Yoga's revenues accelerated double digits versus Q1, growing 28% in the quarter, driven by continued DTC strength. Overall, first half sales were up 19%. The brand saw notable success with sports bras and dresses and it opened 2 additional stores in Southern California, bringing the total store count now to 4.

隨著我們繼續多元化我們的產品，我們仍然對顯著發展這些業務的機會充滿熱情。至於我們的其他品牌，在 DTC 持續強勁的推動下，Beyond Yoga 的收入較第一季度實現兩位數增長，本季度增長 28%。總體而言，上半年銷售額增長了 19%。該品牌在運動胸罩和連衣裙方面取得了顯著成功，並在南加州又開設了 2 家門店，使目前門店總數達到 4 家。

Dockers was also impacted by weakness in U.S. wholesale, while the brand experienced continued strength with DTC up 22% and international up 10% in the second quarter. Adjusting for the ERP shift, Dockers would have been flat in Q2, with sales up 8% in the first half. Before I turn it over to Harmit, I want to share my conviction in our future and the strength of the Levi's brand around the world. Michelle and I have traveled extensively this last quarter, visiting a number of key international markets, including Mexico, India, China and Japan.

Dockers 也受到美國批發疲軟的影響，但該品牌持續走強，第二季度 DTC 增長 22%，國際增長 10%。根據 ERP 的變化進行調整後，Dockers 第二季度業績將持平，上半年銷售額增長 8%。在我把它交給 Harmit 之前，我想分享一下我對我們未來的信念以及 Levi's 品牌在全球的實力。上個季度，米歇爾和我進行了廣泛的旅行，訪問了一些主要的國際市場，包括墨西哥、印度、中國和日本。

And everywhere we have been, the Levi's brand is incredibly strong, and we are winning. We've met with consumers, customers, and franchise partners and we're inspired by their view of Levi's and our future. Our strength in DTC and international combined with the actions we are taking to fix our U.S. wholesale business, give me confidence that we can accelerate as we go into the key holiday season and end of the year with momentum heading into next fiscal year.

無論我們走到哪裡，Levi's 品牌都非常強大，我們正在取得勝利。我們會見了消費者、客戶和特許經營合作夥伴，他們對 Levi's 和我們未來的看法給我們帶來了啟發。我們在 DTC 和國際方面的實力，加上我們正在採取的修復美國批發業務的行動，讓我相信，隨著我們進入關鍵的假期季節和年底，我們可以加速前進，並為下一財年提供動力。

Finally, also giving me great confidence in our future is how Michelle has come up to speed on the business, organization and opportunities. Her current remit is big, the Levi's brand globally, all of our commercial organization through which the Levi's P&L rolls up and the digital organization.

最後，米歇爾在業務、組織和機會方面的快速發展也讓我對我們的未來充滿信心。她目前的職責範圍很廣，包括李維斯 (Levi's) 的全球品牌、李維斯 (Levi's) 損益表所通過的所有商業組織以及數字組織。

She has dug in and has played a key role in figuring out our path forward on U.S. wholesale. She is also all over our tops and women's businesses, and I am confident you're going to see a lot more good work as those products come to market later this year and into 2024. She's also starting to make some smart organization moves to set the company up for the long term.

她在確定我們在美國批發市場的前進道路方面發揮了關鍵作用。她還涉足我們的上衣和女裝業務，我相信隨著這些產品在今年晚些時候和 2024 年上市，您會看到更多出色的工作。她還開始採取一些明智的組織舉措，以確保公司的長遠發展。

As I said before, I was confident when we hired her that she would be a great successor, and now after 6 months, I'm even more sure of myself that she will take this company to the next level when she becomes CEO. With that, I will turn it over to Harmit.

正如我之前所說，當我們僱用她時，我很有信心她將成為一位偉大的繼任者，而現在 6 個月後，我更加確信當她成為首席執行官時，她將帶領這家公司更上一層樓。這樣，我就把它交給哈米特了。

Thanks, Chip. In the second quarter, we delivered on our objectives for revenue, profitability and inventory while continuing to advance our strategic initiatives in a challenging environment. We delivered strong results in our global direct-to-consumer channel and are seeing positive momentum in our international business.

謝謝，奇普。第二季度，我們實現了收入、盈利能力和庫存目標，同時在充滿挑戰的環境中繼續推進我們的戰略舉措。我們在全球直接面向消費者的渠道中取得了強勁的業績，並在國際業務中看到了積極的勢頭。

These businesses today make up the majority of our total revenue and are the primary drivers of our long-term growth and margin objectives. We also made progress in several other key areas of our business. In the quarter, we meaningfully reduced our inventory position and our U.S. service levels improved as we exited the quarter, giving us confidence to now say we will end the year with inventories below prior year levels, ahead of our initial plan.

如今，這些業務占我們總收入的大部分，是我們長期增長和利潤目標的主要驅動力。我們還在業務的其他幾個關鍵領域取得了進展。在本季度，我們有意義地減少了庫存頭寸，並且隨著本季度的結束，我們的美國服務水平得到了改善，這讓我們有信心表示，我們將在我們最初的計劃之前，以低於去年水平的庫存結束年底。

Also highlighting our commitment to long-term investment, we accomplished a major milestone with our U.S. ERP upgrade, a cloud solution, allowing us to leverage data more productively, that is also the foundation to growing our DTC and digital businesses. Related revenue impacts are also now behind us. While we are lowering our outlook for the back half of the year, given the dynamics impacting U.S. wholesale, we have several initiatives Chip mentioned to drive stronger results in this business in the second half and the longer term.

我們通過美國 ERP 升級（雲解決方案）實現了一個重要里程碑，這也凸顯了我們對長期投資的承諾，使我們能夠更高效地利用數據，這也是發展我們的 DTC 和數字業務的基礎。相關的收入影響現在也已成為過去。雖然我們降低了下半年的前景，但考慮到影響美國批發業的動態，我們提出了 Chip 提到的幾項舉措，以推動下半年和更長期的業務取得更強勁的業績。

In the second half, revenues, gross margins, EBIT margins and EPS are all expected to be up to prior year. To put this into perspective, second half sales are expected the same run rate as the first half. The back half will also benefit from incremental sales drivers and margin tailwinds from lower product costs and freight, laying a solid foundation for next year.

下半年，收入、毛利率、息稅前利潤率和每股收益預計將達到去年同期水平。從這個角度來看，下半年的銷售預計與上半年相同。下半年還將受益於銷售增長的推動力以及產品成本和運費降低帶來的利潤順風，為明年奠定堅實的基礎。

And we will end the year with a structurally stronger business with a higher growth and gross margin accretive DTC and international businesses, representing a greater share of the company. I will now provide more color on our Q2 performance and then move to our outlook.

今年結束時，我們的業務結構將更加強勁，DTC 和國際業務將實現更高的增長和毛利率增值，並在公司中佔據更大的份額。我現在將提供更多關於我們第二季度業績的信息，然後轉向我們的前景。

Total company revenue of $1.3 billion decreased 9% versus prior year, down 2% when adjusting for the ERP shift. Our DTC channel posted 14% growth on top of 22% growth in Q2 '22, with continued broad-based positive comp sales growth across geographies driven by higher traffic and volume.

公司總收入為 13 億美元，比上年下降 9%，根據 ERP 調整調整後下降 2%。我們的 DTC 渠道在 22 年第二季度增長 22% 的基礎上實現了 14% 的增長，在流量和銷量增加的推動下，各地區的銷售持續廣泛的正增長。

Company-operated e-commerce also accelerated, up 21%, with growth across all segments and brands. Global wholesale was down 22%. Excluding the shift, the channel declined low double digits on top of nearly 20% growth last year. Growth was strong in Asia and Latin America, but more than offset by softer performance in the U.S. and Europe.

公司自營電子商務也加速增長，增長了 21%，所有細分市場和品牌均實現增長。全球批發量下降 22%。排除這一轉變，該渠道在去年近 20% 的增長基礎上出現低兩位數的下滑。亞洲和拉丁美洲的增長強勁，但被美國和歐洲的疲軟表現所抵消。

Adjusted gross margin was a record 58.7%, up 50 basis points against last year's record Q2 performance. Favorable channel and geographic mix, price increases, lower air freight and FX more than offset the impact of lower (inaudible) price sales and higher product costs. As a reminder, our H1 '23 gross margins are approximately 300 basis points higher than 2019.

調整後毛利率達到創紀錄的 58.7%，比去年第二季度創紀錄的業績增長 50 個基點。有利的渠道和地理組合、價格上漲、較低的空運和外匯足以抵消較低（聽不清）的銷售價格和較高的產品成本的影響。提醒一下，我們 23 年上半年的毛利率比 2019 年高出約 300 個基點。

We continue to expect several transitory cost headwinds to abate in the second half. I'll provide more color momentarily when discussing our outlook. Adjusted SG&A expenses in the quarter were $753 million, up 6% to last year. The increase was primarily to support DTC growth with company-operated store count up 6% as well as A&P investment to support our 501 marketing campaign that largely ran in H1.

我們仍然預計下半年一些暫時的成本阻力將會減弱。在討論我們的前景時，我將立即提供更多信息。本季度調整後的 SG&A 費用為 7.53 億美元，比去年增長 6%。這一增長主要是為了支持 DTC 的增長（公司自營商店數量增加了 6%）以及 A&P 投資以支持我們主要在上半年開展的 501 營銷活動。

Adjusted EBIT margin was 2.4%, in line with our expectations and adjusted diluted EPS was $0.04. Here are the key highlights by segment. In the Americas, net revenues declined 22% on top of 17% growth a year ago. DTC growth of 6% was driven by all markets. Latin America in particular saw continued momentum with 18% growth driven by the strength in Mexico, Brazil and Europe again grew, excluding Russia, up 1% on top of a 15% increase last year due to broad-based DTC growth across all countries. DTC, excluding Russia, was up 14% on top of more than 60% growth last year. Europe saw growth across most countries, led by increases in Italy, Germany, the U.K., Poland and Spain.

調整後息稅前利潤率為 2.4%，符合我們的預期，調整後稀釋後每股收益為 0.04 美元。以下是按細分市場劃分的主要亮點。在美洲，淨收入較上年同期增長 17% 下降 22%。 DTC 6% 的增長是由所有市場推動的。尤其是拉丁美洲，在墨西哥、巴西和歐洲（不包括俄羅斯）的強勁推動下，繼續保持增長 18% 的勢頭，由於所有國家 DTC 的廣泛增長，在去年 15% 的基礎上又增長了 1%。 DTC（不包括俄羅斯）在去年超過 60% 的基礎上增長了 14%。歐洲大多數國家都實現了增長，其中意大利、德國、英國、波蘭和西班牙的增幅最大。

Asia's very strong performance further accelerated with revenues up 27% driven again by growth across all channels, particularly DTC. We are encouraged by the improved trends we are seeing in China, which saw sales return to pre-pandemic levels and growth across all channels, with notable strength in mainline brick and mortar.

亞洲強勁的業績進一步加速，在所有渠道（尤其是 DTC）增長的推動下，收入再次增長 27%。我們對中國看到的改善趨勢感到鼓舞，銷售額恢復到大流行前的水平，所有渠道均出現增長，其中主線實體店的實力顯著。

Thailand, Turkey, Japan and India were also highlights. Asia's operating margin also expanded 370 basis points to 12.3% due to higher gross margin and stronger SG&A leverage. Now looking to our balance sheet and cash flows. We continue to make progress on our plan to sequentially improve inventory levels. Q2 inventory dollars were up 18%, a 15-point improvement from last quarter and units were up 8%.

泰國、土耳其、日本和印度也是亮點。由於更高的毛利率和更強的SG&A槓桿，亞洲的營業利潤率也擴大了370個基點至12.3%。現在看看我們的資產負債表和現金流。我們繼續在逐步提高庫存水平的計劃上取得進展。第二季度庫存美元增長 18%，比上季度提高 15 個百分點，單位數量增長 8%。

Importantly, inventory improvement did not come at the expense of margin, and current inventories are healthy with co-products representing more than 2/3 of total inventory. We continue to expect sequential improvement and to end the year below prior year levels ahead of our plan. The peak of inventory is behind us, and we're taking a prudent approach going forward, focused on moderating receipts and leaning into our ability to chase a benefit of our globally diversified supply chain.

重要的是，庫存改善並非以犧牲利潤為代價，而且當前庫存狀況良好，副產品佔總庫存的 2/3 以上。我們繼續期望連續改善，並在我們的計劃之前將今年結束時低於去年的水平。庫存高峰已經過去，我們正在採取謹慎的態度繼續前進，重點是控制收入並依靠我們追求全球多元化供應鏈利益的能力。

Inventory management will be aided by our recent IT investments, including our ERP enabling real-time visibility to our inventory on an omnichannel basis and across our network. Adjusted free cash flow was $211 million in the quarter, up from $13 million in the second quarter of prior year as we continue to improve our inventories throughout the year.

庫存管理將得到我們最近的 IT 投資的幫助，包括我們的 ERP，使我們能夠在全渠道和整個網絡上實時了解我們的庫存。由於我們全年持續改善庫存，本季度調整後自由現金流為 2.11 億美元，高於去年第二季度的 1,300 萬美元。

We also expect to end the year with positive free cash flow. Our cash flow generation also allowed us to repay $100 million of our outstanding ABL borrowing this last week. In the quarter, we returned approximately $48 million in capital to shareholders via dividends, which increased 20% from Q2 last year. Dividends are up 20% in H1 versus prior year. And for Q3 '23, we have declared a dividend of $0.12 per share in line with last quarter.

我們還預計年底將實現正自由現金流。我們產生的現金流還使我們能夠償還上週未償還的 ABL 借款中的 1 億美元。本季度，我們通過股息向股東返還了約 4800 萬美元的資本，比去年第二季度增加了 20%。上半年股息較上年增長 20%。對於 23 年第三季度，我們宣布派發每股 0.12 美元的股息，與上季度一致。

Now moving to our updated guidance for fiscal '23. While we have experienced stronger-than-anticipated trends in our international and DTC businesses, where we expect continued strong momentum, we are lowering our outlook due to softer U.S. wholesale trends.

現在轉向我們更新的 23 財年指南。雖然我們的國際和 DTC 業務的趨勢強於預期，並且預計將繼續保持強勁勢頭，但由於美國批發趨勢疲軟，我們下調了我們的前景。

We're now guiding revenue growth of 1.5% to 2.5% as compared to growth of 1.5% to 3% previously. We expect full year adjusted EPS to be within a range of $1.10 to $1.20 from a prior range of $1.30 to $1.40. There are 3 fairly equivalent factors driving the change in guidance. First, our slightly lower revenue expectation and the resulting fixed cost deleverage. Second, lower expected H2 gross margin mainly due to our targeted pricing actions; and third, nonoperating FX losses and a higher tax rate.

我們現在指導收入增長 1.5% 至 2.5%，而之前的增長為 1.5% 至 3%。我們預計全年調整後每股收益將從之前的 1.30 美元至 1.40 美元區間調整至 1.10 美元至 1.20 美元區間。有 3 個相當相似的因素推動了指導意見的變化。首先，我們略低的收入預期以及由此產生的固定成本去槓桿化。其次，預計下半年毛利率較低，主要是由於我們有針對性的定價行動；第三，非經營性外匯損失和更高的稅率。

For the year in reported dollars by segment, we now expect a low single-digit decline in the Americas despite continued strength in U.S. DTC and in Latin America. Europe's growth is still expected within the previously guided range of up low single digits. And based on stronger trends for Asia, we now expect low teens growth and improvement from the low double-digit growth in our previous guide.

對於今年按細分市場報告的美元而言，儘管美國 DTC 和拉丁美洲持續走強，但我們現在預計美洲地區將出現低個位數下降。預計歐洲的增長仍處於先前指導的低個位數增長范圍內。基於亞洲的強勁趨勢，我們現在預計將出現低兩位數增長，並比我們之前指南中的低兩位數增長有所改善。

Adjusted gross margin is now expected to contract approximately 90 basis points from prior year's 57.6% as compared to an expectation for a 50 basis points decline previously. The incremental 40 basis point decline is due to the strategic pricing actions we are taking to drive volume and capture market share in U.S. wholesale.

調整後的毛利率目前預計將從上年的 57.6% 收縮約 90 個基點，而之前的預期是下降 50 個基點。增量下降 40 個基點是由於我們為提高美國批發市場銷量和占領市場份額而採取的戰略定價行動。

Despite all the puts and takes during '23, we expect that gross margins will end the year up almost 300 basis points versus 2019. To put into context, the new guidance, I'll provide some color around our H2 expectations in total. We expect revenues to grow mid-single digits as mentioned, versus 2019.

儘管在 23 年期間發生了所有的看跌和下跌，但我們預計今年年底的毛利率將比 2019 年增長近 300 個基點。為了結合新的指導背景，我將圍繞我們的下半年總體預期提供一些顏色。正如前面提到的，我們預計收入與 2019 年相比將實現中個位數增長。

H2 sales will maintain the same run rate as H1. Similarly, we expect U.S. wholesale to maintain the plus 2% growth rate versus 2019 we delivered in H1. Adjusted gross margin is expected flat to up slightly in H2, driven by lower product costs and freight, partially offset by our targeted pricing actions.

下半年銷售將維持與上半年相同的運行率。同樣，我們預計美國批發市場將比 2019 年上半年保持 2% 以上的增長率。由於產品成本和運費下降，預計下半年調整後的毛利率將持平或略有上升，但我們的目標定價行動部分抵消了這一影響。

However, because the pricing actions are evenly distributed between the quarters and the benefit of lower product costs doesn't fully materialize until Q4, we expect Q3 gross margins to contract slightly more than 200 basis points year-over-year, with Q4 gross margins up slightly more than 200 basis points over prior year.

然而，由於定價行為在各季度之間均勻分佈，並且產品成本降低的好處要到第四季度才能完全實現，因此我們預計第三季度的毛利率將同比略縮超過 200 個基點，而第四季度的毛利率將略有下降。比上年略高200個基點。

Looking at H2 in total, adjusted EBIT margin is also anticipated to expand nearly 100 basis points to roughly 11.5%, but with Q4 adjusted EBIT margin significantly higher than Q3. Lastly, we expect an H2 tax rate in the low double digits versus 1% last year. To conclude, we expect to end the year structurally stronger, setting us up well for 2024 and beyond. Our stronger growth, higher gross margin, premium DTC and international businesses will account for a greater share of our revenue, nearly 45% and 60%, respectively.

從下半年整體來看，調整後息稅前利潤率預計也將擴大近 100 個基點，達到約 11.5%，但第四季度調整後息稅前利潤率明顯高於第三季度。最後，我們預計 H2 稅率將低於去年的 1%，達到兩位數。總而言之，我們預計今年的結構性會更加強勁，為 2024 年及以後做好準備。我們更強勁的增長、更高的毛利率、優質 DTC 和國際業務將占我們收入的更大份額，分別接近 45% 和 60%。

Driven by our ongoing execution and surgical pricing actions, U.S. wholesale will stabilize and end the year as a smaller share of our business at less than 30%. Inventories are expected to end 2023 below prior year levels. Our '23 gross margin is expected to remain 300 basis points higher than 2019, and we'll exit the year with Q4 EBIT margins north of 12%.

在我們持續執行和手術定價行動的推動下，美國批發市場將穩定下來，並在年底時占我們業務的比例將降至 30% 以下。預計 2023 年底庫存將低於去年水平。我們 23 年的毛利率預計將比 2019 年高出 300 個基點，今年第四季度的息稅前利潤率將超過 12%。

And importantly, we continue to return cash to our shareholders with a payout ratio of 150% of free cash flow, substantially higher than our targeted 55% to 65% communicated at our Investor Day. Lastly, while we are lowering our H2 outlook because of U.S. wholesale, we expect a strong growth in our large, fast-growing DTC and international businesses to continue, which as U.S. wholesale stabilizes and COGS improves, we'll position our unique business model to generate significant financial leverage beyond 2023.

重要的是，我們繼續向股東返還現金，派息率為自由現金流的 150%，遠高於我們在投資者日傳達的 55% 至 65% 的目標。最後，雖然我們因美國批發而降低了下半年的前景，但我們預計我們大型、快速增長的 DTC 和國際業務將繼續強勁增長，隨著美國批發的穩定和銷貨成本的改善，我們將定位我們獨特的業務模式到 2023 年之後產生顯著的財務槓桿。

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

至此，我們現在將開始問答環節。

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

（操作員指令）我們的第一個問題來自摩根大通的馬修·博斯（Matthew Boss）。

So Chip, could you elaborate on current demand trends that you're seeing in the U.S. relative to Europe today? Could you provide an update on the denim category and market share trends? And then Harmit, what is your level of expense flexibility if macro trends worsened globally in the back half?

Chip，您能詳細說明一下您所看到的美國相對於歐洲當前的需求趨勢嗎？您能否提供有關牛仔布類別和市場份額趨勢的最新信息？然後哈米特，如果下半年全球宏觀趨勢惡化，您的費用靈活性水平是多少？

Matt, thanks for the question. I'll kind of take this. I'll start with the category, then I'll dig in a little bit deeper and talk market share and the contrast between U.S. and Europe. So first of all, on the category, you may remember that we only get quarterly data here in the U.S. So outside of the U.S. internationally, we don't really get any market share data or market data.

馬特，謝謝你的提問。我會接受這個。我將從類別開始，然後更深入地討論市場份額以及美國和歐洲之間的對比。首先，在類別上，您可能還記得我們只在美國獲得季度數據。因此，在美國以外的國際範圍內，我們實際上沒有獲得任何市場份額數據或市場數據。

So all we've got is U.S. data. And as you know, since the pandemic, there have been wild swings within the category, Extreme downs, extreme peaks, extreme downs, lots of volatility, but if we take a look on a past 12-month basis through May, we are up against the biggest spike in category growth.

所以我們所掌握的只是美國的數據。如您所知，自大流行以來，該類別內出現了劇烈波動，極端下跌，極端峰值，極端下跌，波動很大，但如果我們看看截至 5 月份的過去 12 個月，我們會發現與類別增長的最大峰值相反。

So the May '22 past 12 months versus May of '21 past 12 months, was a 20-plus percent spike in the category. That's the base that we're up against right now. And if you look at it on a past 12-month basis, we were down modestly versus that peak.

因此，過去 12 個月的 22 月 5 月與過去 12 個月的 21 月 5 月相比，該類別的漲幅超過 20%。這就是我們現在面臨的基礎。如果你從過去 12 個月的角度來看，我們的股價與峰值相比略有下降。

The key point though, when we take a look at the denim category overall in the U.S. is the category today on a past 12-month basis, is 12% bigger than it was in 2019, 12% bigger than the pre-pandemic period of time, and that's on a dollar value basis. I'll talk about market share here in a minute.

不過，關鍵一點是，當我們審視美國整體牛仔布類別時，在過去 12 個月的基礎上，今天的牛仔布類別比 2019 年增長了 12%，比大流行前時期增長了 12%。時間，這是以美元價值為基礎的。稍後我將討論市場份額。

In the U.S., as we talked in the script in the prepared remarks, it really is a story of 2 different channels, U.S. wholesale being very soft, paradoxically U.S. DTC much stronger. And I say paradoxically because we're very strong in our U.S. mainline business, which is the most premium expression of the brand.

在美國，正如我們在準備好的發言稿中所說的那樣，這確實是兩個不同渠道的故事，美國批發市場非常軟，但矛盾的是美國 DTC 卻強得多。我說得有些矛盾，因為我們在美國的主線業務非常強大，這是該品牌最優質的表現。

But digging into U.S. wholesale, there are really 2 key dynamics, both of which we have some control over, and I'll speak to that. One is clearly the lower or moderate income consumer is being squeezed. And that is driving some of the big category dynamics, much more price sensitivity. When we look at our business, our value brands are down double digits, U.S. wholesale down double digits and softness in that channel.

但深入研究美國批發市場，確實有兩個關鍵動態，我們對這兩個動態都有一定的控制力，我將對此進行討論。一是中低收入消費者明顯受到擠壓。這正在推動一些大類別的動態，以及更高的價格敏感性。當我們審視我們的業務時，我們的價值品牌下降了兩位數，美國批發下降了兩位數，並且該渠道疲軟。

But also, as we've talked through over the last several calls, we've had our own internal supply chain challenges with the inventory levels we were carrying, which were causing fill rate issues which led to customer service issues and ultimately, customer out of stocks.

而且，正如我們在過去幾次電話中討論的那樣，我們的庫存水平也面臨著內部供應鏈的挑戰，這導致了填充率問題，從而導致了客戶服務問題，並最終導致客戶流失股票。

Now that our inventory levels are returning to closer to normal levels, we are seeing our service levels improve. And as we're into this new quarter, we are seeing that those improved service levels are improving the out-of-stock conditions, which is improving sell-through. So we're feeling optimistic about that.

現在我們的庫存水平正在恢復到接近正常水平，我們看到我們的服務水平有所改善。當我們進入這個新季度時，我們發現服務水平的提高正在改善缺貨情況，從而提高銷售率。所以我們對此感到樂觀。

But for the first half, our U.S. wholesale business is still up 2% versus pre-pandemic. So despite the fact that we're down double digits, it's up against such a big base period. As I said, paradoxically, DTC is relatively much stronger, full-price mainline and e-com all performing really well.

但上半年，我們的美國批發業務仍比大流行前增長了 2%。因此，儘管我們的業績下降了兩位數，但它還是面對瞭如此大的基期。正如我所說，矛盾的是，DTC 相對更強，全價主線和電子商務都表現得非常好。

U.S. DTC comp kind of low to mid-single digits in the second quarter and first half. And e-commerce was really strong with double-digit growth in the U.S. in Q2. I guess the last thing I'll say about the U.S. I'm going to talk market share just real briefly, which in part because it's such a key indicator of brand health, we grew market share this past quarter.

美國 DTC 在第二季度和上半年的業績處於低至中個位數。美國的電子商務確實非常強勁，第二季度實現了兩位數的增長。我想我要說的關於美國的最後一件事我要簡單地談談市場份額，部分原因是它是品牌健康度的關鍵指標，我們在上個季度增加了市場份額。

Our market share was up on men's and women's. We were up 2 points on men's to 22%. That is more than double, the #2 brand in the marketplace. And on women's, if you forgive me for a moment, I'm going to take a little victory lap here. We took market share leadership for the first time in the 12 years that I've been here and the first time probably in decades, with 1 share point of growth to 7%, we were the only major brand to grow share in women's.

我們的男士和女士市場份額都有所上升。我們比男子組高出 2 個百分點，達到 22%。這是市場第二大品牌的兩倍多。至於女子組，請原諒我一下，我將在這裡繞一圈取得勝利。在我任職 12 年來，我們首次取得了市場份額領先地位，這可能是幾十年來的第一次，份額增長了 1 個百分點，達到 7%，我們是唯一一個在女裝市場份額增長的主要品牌。

We are also -- we maintained share leadership with our key 18- to 30-year old, which is our target consumer, and we gained 1 share point in the premium tier kind of which is $60 and up, again speaking to the strength of our mainline business, where we are also the market leader.

我們還——我們在 18 至 30 歲的關鍵消費者（我們的目標消費者）中保持了份額領先地位，並且我們在 60 美元及以上的高端產品中獲得了 1 個份額點，這再次說明了我們的主線業務，我們也是該領域的市場領導者。

Europe, real quickly, we don't have nearly as much information on market size. We don't get it. We get that data annually and same with market share. But I suspect picture is probably pretty similar. Excluding Russia, as you heard in the prepared remarks, Europe was up 2%. That's coming off of a 15% base. And the picture is pretty similar. DTC, very, very strong.

歐洲，很快，我們就沒有那麼多關於市場規模的信息。我們不明白。我們每年都會獲取這些數據，並且與市場份額相同。但我懷疑圖片可能非常相似。正如您在準備好的發言中聽到的那樣，不包括俄羅斯，歐洲上漲了 2%。這是以 15% 為基礎的。而且圖片非常相似。 DTC，非常非常強。

Our DTC business was -- excluding Russia, it was up double digits. Traffic is still up mid-single digits in our own channels and comps are up double digits in Europe. Our second half comparison, by the way, get much easier, both in Europe and in the U.S. And so that is kind of a tailwind from us from a numbers standpoint.

我們的 DTC 業務（不包括俄羅斯）增長了兩位數。我們自己的渠道中的流量仍在中個位數增長，而歐洲的流量則增長了兩位數。順便說一句，我們下半年的比較在歐洲和美國都變得容易得多，因此從數字的角度來看，這對我們來說是一種順風。

But in Europe, we are also seeing softness in U.S. wholesale and Europe wholesale. The wholesale customers are being cautious with their open-to-buy budgets and wholesale in Europe was also down for the quarter. So I think without having as robust of data as we do for the U.S. and Europe, I would say the picture is fairly similar.

但在歐洲，我們也看到美國批發和歐洲批發疲軟。批發客戶對其開放購買預算持謹慎態度，本季度歐洲的批發量也有所下降。因此，我認為，如果沒有像美國和歐洲那樣可靠的數據，我會說情況相當相似。

Europe, for us, is more of a premium market. So even in wholesale, it tends to be Tier-2 product across most of Europe at higher price points, but the general dynamics are very, very similar. Harmit, do you want to...

對我們來說，歐洲更像是一個高端市場。因此，即使在批發方面，歐洲大部分地區也往往是價格較高的二級產品，但總體動態非常非常相似。哈米特，你想……

Yes. So let me talk the levers that we could push further. But let me just talk a little bit about what we're doing. So overall, Matt and everybody on the call, you're familiar that as things tighten, we can really tighten expenses, COVID was a good example, and readjust our expense base to whatever new revenue base there is. What we've been doing so far this year because it's not only a tale of 2 halves, it's also a tale of 2 worlds, and it's a tale of 2 channels.

是的。那麼讓我談談我們可以進一步推動的槓桿。但讓我簡單談談我們正在做的事情。總的來說，馬特和參加電話會議的每個人都知道，隨著情況收緊，我們可以真正收緊開支，新冠疫情就是一個很好的例子，並根據新的收入基礎重新調整我們的開支基礎。今年到目前為止我們一直在做的事情是因為這不僅是一個兩個半的故事，也是一個兩個世界的故事，也是一個兩個頻道的故事。

The channel international is working. Direct-to-consumer is working. So we're putting -- we're reallocating resources to fuel those businesses, and we're tightening costs related to U.S. wholesale.

國際頻道正在運作。直接面向消費者正在發揮作用。因此，我們正在重新分配資源來推動這些業務，並且我們正在收緊與美國批發相關的成本。

The other thing we have done overall is we're really focused on discretionary costs, and I'll give you some examples. We have tightened travel. We've tightened new hires and the like. So for example, on travel because we've been this business for the long term, we're still ensuring that people travel to meet customers, meet consumers, but most of the other travel is kind of on hold.

我們總體上所做的另一件事是我們真正關注可自由支配成本，我將舉一些例子。我們收緊了旅行。我們收緊了新員工的招聘等。例如，在旅行方面，因為我們長期從事這項業務，我們仍然確保人們旅行是為了會見客戶、會見消費者，但大多數其他旅行都被擱置了。

If things get worse, we will look at what's still open. Hires, we're not hiring new heads. We're hiring critical heads. If things tighten, we'll tighten that and take a hard look at fixed costs from that perspective like we did during COVID. So again, realigning our cost base to drive the prospective revenues, I think, is an important principle.

如果情況變得更糟，我們將看看哪些仍然開放。招聘，我們不招聘新領導。我們正在招聘關鍵負責人。如果情況收緊，我們將收緊這一點，並從這個角度認真審視固定成本，就像我們在新冠疫情期間所做的那樣。因此，我認為，重新調整我們的成本基礎以推動預期收入是一個重要原則。

And we have tightened quite a bit a few other options available, but we run this business for the long term. But the important point to think about Matt, is, and I think I said it in my prepared remarks, there are some critical pieces that are becoming tailwinds. COGS, for example, commodity costs and cotton, which was a headwind in H1, it's going to be a tailwind, especially as we start thinking exiting the year and thinking about 2024 and ensuring that our costs are maintained, so that we drive profitability and get to that magic EBIT margin number that we laid out at Investor Day is critical for us.

我們已經收緊了相當多的其他可用選項，但我們長期經營這項業務。但要考慮馬特的重要一點是，我想我在準備好的發言中說過，有一些關鍵部分正在成為順風車。例如，商品成本和棉花，上半年是逆風，但也將是順風，特別是當我們開始考慮退出這一年並考慮 2024 年並確保我們的成本得到維持，以便我們提高盈利能力和達到我們在投資者日公佈的神奇息稅前利潤率數字對我們來說至關重要。

Our next question comes from the line of Bob Drbul of Guggenheim.

我們的下一個問題來自古根海姆的鮑勃·德布爾（Bob Drbul）。

I guess just my question probably for Harmit. When you think about the decline, the outlook that you've lowered in the second half of the year, can you just give us a little more color on the cadence expectations you gave from gross margin, but between Q3 and Q4 and some more of the quarterly trends that you're expecting in the back half?

我想我的問題可能是針對哈米特的。當您考慮下半年的下降和下調的前景時，您能否為我們提供更多有關毛利率預期的信息，但在第三季度和第四季度以及更多的時間段內您預計下半年的季度趨勢是什麼？

Sure, Bob. First, as I mentioned in the prepared remarks, 3 factors driving the reduction in guidance. And that's despite H2 is still growing. Gross margin in H2 largely flat, but substantially up to 2019 and EBIT margins substantially better. The factors really are a slight reduction in revenue outlook, gross margin lower than what we anticipated largely because of the targeted pricing actions that Chip talked about in his prepared remarks and the last piece is really tax rates slightly higher.

當然，鮑勃。首先，正如我在準備好的發言中提到的，導致指導意見減少的三個因素。儘管 H2 仍在增長。下半年的毛利率基本持平，但與 2019 年相比大幅增長，息稅前利潤率也大幅提高。這些因素實際上是收入前景略有下降，毛利率低於我們的預期，很大程度上是因為奇普在他準備好的講話中談到的有針對性的定價行動，最後一點實際上是稅率略高。

In terms of the color on Q3 and Q4, comparisons, as you know, sequentially ease for both sales and gross margins into Q3 and Q4. Growth improves. Our view is low single digit up in Q3 and high single digits up in Q4. The benefit of lower product costs, which is largely driven by cotton doesn't fully materialize until Q4. We still have inventory that we bought when cotton was high, we're going to -- we're working that through in Q3.

就第三季度和第四季度的顏色而言，如您所知，第三季度和第四季度的銷售額和毛利率連續下降。生長改善。我們的觀點是第三季度的低個位數增長和第四季度的高個位數增長。主要由棉花推動的產品成本降低的好處要到第四季度才能完全實現。我們仍然擁有在棉花價格高位時購買的庫存，我們將在第三季度解決這個問題。

And the new inventory is at the lower prices and is substantially different. In fact, I think COGS improvement in the new price is about 200 basis points. And so that's something that will not only -- we'll see in Q4, but we can see a substantial piece in '24. SG&A is expected to be up mid-single digits in H2 weighted towards Q3 and EPS, we expected about double the EPS in Q4 versus Q3 just because of the revenue growth and the gross margin expectation.

而且新的庫存價格較低，而且有很大不同。事實上，我認為新價格的 COGS 改善約為 200 個基點。因此，這不僅是我們將在第四季度看到的，而且我們可以在 24 年看到重要的部分。考慮到第三季度和每股收益，下半年的銷售、管理費用預計將增長中個位數，由於收入增長和毛利率預期，我們預計第四季度的每股收益將是第三季度的兩倍左右。

The only other thing that I would probably note for all of you are what I call recent trends. Our results are as of May. Recent trends -- we've seen positive trends in wholesale sell-through, especially as Chip mentioned, we are filling orders and making sure there is stock. We're seeing similar trends in DTC and outlets. And so I think as we fill and ensure the stock cotton situation is addressed, we will see progress. And then once the price is for the targeted fit that we talked about reduced sometime in the next 30-odd days, I think that's where we feel that we can address this price-sensitive consumer and continue to accelerate consumer demand as we continue to grow share.

我可能要為大家指出的唯一另一件事是我所說的近期趨勢。我們的結果截至五月。最近的趨勢——我們看到批發銷售的積極趨勢，特別是正如奇普提到的，我們正在填寫訂單並確保有庫存。我們在 DTC 和銷售點也看到了類似的趨勢。因此，我認為，當我們填補並確保庫存棉花問題得到解決時，我們將會看到進展。然後，一旦我們談到的目標款式的價格在未來 30 多天的某個時候降低，我認為這就是我們認為我們可以解決這個對價格敏感的消費者的問題，並隨著我們的不斷增長而繼續加速消費者需求的地方分享。

Our next question comes from the line of Jay Sole of UBS.

我們的下一個問題來自瑞銀集團的 Jay Sole。

Great. So my question, hoping we can talk a little bit more about this divergence in performance between the U.S. DTC channel versus the wholesale DTC channel. Maybe Chip, can you tell us how much is sort of just the performance of the channel? It sounds like that the lower income consumer is sort of reason for the divergence. But how much is it just those channels themselves are not performing that well? How much is the supply chain issue? How much sort of is the brand where maybe is the brand not resonating as much in those channels? If you can sort of unpack that a little bit, that would be helpful.

偉大的。所以我的問題是，希望我們能夠更多地討論美國 DTC 渠道與批發 DTC 渠道之間的績效差異。也許 Chip，你能告訴我們通道性能的影響有多大嗎？聽起來低收入消費者是造成這種差異的原因之一。但到底有多少是這些渠道本身表現不佳的原因呢？供應鏈問題有多大？該品牌在這些渠道中的共鳴程度如何？如果你能稍微解開它，那將會很有幫助。

It's a really good question because it is kind of the big paradox as we take a look at the results, our U.S. DTC business, including e-commerce and especially including mainline, are performing really, really well. And that's -- I would say that's why that's a strategic focus of ours globally is we're in control with the brand, we're in control of the consumer experience, and we're in control of what we focus on in our stores.

這是一個非常好的問題，因為當我們查看結果時，這是一個很大的悖論，我們的美國 DTC 業務，包括電子商務，尤其是主線，表現非常非常好。這就是——我想說，這就是為什麼我們的全球戰略重點是我們控製品牌，我們控制消費者體驗，我們控制我們商店的重點。

We're in control of the assortment in the stores. And the consumer comes into the store, wanting to buy Levi's. And we're seeing really good success there, as you heard from the results. I think the wholesale dynamic, some of it is clearly the consumer, okay?

我們控制著商店的品種。消費者走進商店想要購買 Levi's。正如您從結果中聽到的那樣，我們在那裡看到了非常好的成功。我認為批發動態，其中一些顯然是消費者，好嗎？

So as we said, our value brands are down double digits. U.S. wholesale is down double digits. Some of it is definitely a channel dynamic. I think that moderate to lower income consumer is definitely under pressure. And I suspect we're all reading the same newspapers, feeling the trade-offs of needing to pay for a summer vacation versus a new pair of jeans. And I think that's some of it. But we're competing now for other dollars that are being spent out of the consumer's wallet, and that moderate income consumer is having to make some tough choices now.

正如我們所說，我們的價值品牌下降了兩位數。美國批發量下降兩位數。其中一些絕對是渠道動態。我認為中低收入消費者肯定面臨著壓力。我懷疑我們都在讀同樣的報紙，感受著需要支付暑假費用和一條新牛仔褲的權衡。我想這就是其中的一部分。但我們現在正在爭奪從消費者錢包中支出的其他資金，而中等收入消費者現在必須做出一些艱難的選擇。

So I think I suspect that, that is part of it. But -- there's also the dynamic, as I said earlier, that's within our control. This customer fill rate issue that we've had because of our loaded inventory, I'll say it that bluntly in prior quarters that as our inventory levels start to trend towards something that's more normal, or the congestion that we were experiencing in our distribution centers has abated and our fill rates are improving literally week over week and as we now into the third quarter as we are seeing our fill rates improve, we're closing out, out of stocks, and that is improving sell-through. So we're optimistic about that. And then the last point is this point about making some strategic, very selective price reductions, and they are only partial rollback. So over the last 2 years, we have taken price increases globally, including here in the U.S. and including here in U.S. wholesale.

所以我想我懷疑這是其中的一部分。但是，正如我之前所說，還有一種動態是在我們控制範圍內的。由於庫存過多，我們遇到了客戶填充率問題，我會坦率地說，在前幾個季度，隨著我們的庫存水平開始趨向於更正常的趨勢，或者我們在分銷中遇到的擁堵中心數量已經減少，我們的填充率每週都在提高，現在進入第三季度，我們看到我們的填充率有所提高，我們正在關閉，缺貨，這正在改善銷售。所以我們對此持樂觀態度。最後一點是關於進行一些戰略性的、非常有選擇性的降價，而且它們只是部分回滾。因此，在過去的兩年裡，我們在全球範圍內提高了價格，包括美國和美國的批發。

And we have widened the price gap versus the other brands in U.S. wholesale. And on some of the most price-sensitive items in our line, that price gap is too wide and we're going to fix that. But to put it into perspective, we're talking about 6 items in wholesale out of more than 60 items that we sell to U.S. wholesale out of the more than 120 items that we sell in the U.S.

我們擴大了與美國批發中其他品牌的價格差距。對於我們產品線中一些對價格最敏感的產品，價格差距太大，我們將解決這個問題。但從長遠來看，我們談論的是我們在美國批發銷售的 120 多種商品中的 60 多種商品中的 6 種批發商品。

So it's -- depending on what base you want to use, it's less than 10% or less than 5% of the total number of items in our assortment and it's going to be less than 15% of the total volume. But we know from our analysis and we've been engaging with our customers on this as well, we know from our analysis that by closing this price gap, it should stabilize this business a little bit further. So the combination of the supply chain confidence in our deliveries and addressing this price gap to be a little bit sharper versus competition in these multi-brand wholesale customers.

所以，根據您想要使用的基礎，它不到我們分類中商品總數的 10% 或不到 5%，並且將不到總體積的 15%。但從我們的分析中我們知道，我們也一直在與我們的客戶就此進行接觸，從我們的分析中我們知道，通過縮小這個價格差距，應該會進一步穩定這項業務。因此，與這些多品牌批發客戶的競爭相比，供應鏈對我們的交貨信心和解決價格差距的結合會更加激烈。

The combination of those 2 things should stabilize and potentially even get our wholesale business back on track to growth in the second half of the year and give us momentum as we're going into the critical holiday period and into next fiscal year.

這兩件事的結合應該會穩定下來，甚至有可能讓我們的批發業務在下半年重回增長軌道，並在我們進入關鍵假期和下一財年時為我們提供動力。

Our next question comes from the line of Ike Boruchow of Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

Harmit, 2 follow-ups on the margin guidance to reach. Just the -- I understand the big gross margin downtick in 3Q because of these pricing actions. Maybe I'm not understanding clearly, but why does that then flip in the fourth quarter and become much more favorable, whether it's year-over-year versus '19? Like why are the gross margins improving once we get out of Q3 due to these pricing initiatives? And then just can you clarify that the SG&A up mid-single digits year-over-year in the back half? Is that what you said? Because that seems a little heavy to kind of get to the guidance that you're giving. So I just wanted to make sure I'm understanding that.

哈米特 (Harmit)，有 2 次後續行動達成保證金指引。只是 - 我理解由於這些定價行為，第三季度毛利率大幅下降。也許我沒有理解清楚，但為什麼這種情況會在第四季度發生逆轉並變得更加有利，無論是與 19 年相比還是同比？為什麼在第三季度結束後，由於這些定價舉措，毛利率會有所改善？那麼您能否澄清一下，後半段的 SG&A 同比增長了中個位數？是你說的嗎？因為這對於獲得您所提供的指導似乎有點沉重。所以我只是想確保我理解這一點。

Yes. The -- on the gross margin and why should it flip in Q4 because Q4, we will see the full impact of the lower COGS. That's the big switch. In Q3, we still have inventory that we're going to carry over into Q3. What we really did to manage inventory because our inventory is largely core like we didn't have to dramatically mark it down.

是的。關於毛利率，以及為什麼它應該在第四季度翻轉，因為第四季度，我們將看到較低的銷售成本的全面影響。這就是大開關。在第三季度，我們仍然有庫存，我們將結轉到第三季度。我們真正做了什麼來管理庫存，因為我們的庫存很大程度上是核心，就像我們不必大幅降價一樣。

We just got future receipts to match demand. And that's why in Q3, we still have some of the whole inventory that we're selling in and then the new inventory and new prices in Q4 that is behind us. And so it's largely -- and that's why you see (inaudible) in pricing.

我們剛剛收到未來的收據來滿足需求。這就是為什麼在第三季度，我們仍然有一些正在銷售的全部庫存，然後是第四季度的新庫存和新價格。所以這很大程度上是——這就是為什麼你會在定價中看到（聽不清）。

From that perspective, the pricing is largely similar. It started -- we take pricing about a month from now, about 30 days. So you'll see a little bit of impact in Q3 and a little more in Q4, but it's largely the COGS piece that is making the difference.

從這個角度來看，定價基本相似。它開始了——我們從現在起大約一個月（大約 30 天）開始定價。因此，您會在第三季度看到一點影響，在第四季度看到更多影響，但主要是銷貨成本部分產生了影響。

Our second half gross margins, I think, are going to be north of 56%. We'll end the year now to 56%. And relative to '19 is still 300 basis points in H2 better. And I think we were asked this question in 2021 by some of you because we were seeing margins improve 400 basis points relative to '19, and I estimate at that point of time was probably 2/3 stakes longer term. 1/3, it probably goes over time because we were not promoting, inventories are very clean, et cetera.

我認為，我們下半年的毛利率將超過 56%。到今年年底，我們將達到 56%。而且相對於'19年下半年來說仍然好300個基點。我認為我們中的一些人在 2021 年問了這個問題，因為我們看到利潤率相對於 19 年提高了 400 個基點，我估計在那個時間點可能是長期的 2/3 股份。 1/3，它可能會隨著時間的推移而消失，因為我們沒有促銷，庫存非常乾淨，等等。

And that's bearing out in this fashion. At that time, it's difficult to predict commodity prices. That was a huge headwind in the first half, is becoming a tailwind in the second half and cotton futures, at least at this point of time, look at similar levels for '24. So that stays there, that's a bit of a tailwind in '24.

這就是以這種方式體現出來的。那時，很難預測商品價格。這在上半年是一個巨大的逆風，正在成為下半年的順風，而棉花期貨，至少在此時，與 24 年的水平類似。所以這種情況仍然存在，這對 24 年來說是一個順風車。

And the SG&A in the back half?

那麼後半部分的 SG&A 呢？

The SG&A for the -- for quarter 3, we think mid-single digit or low single digit, H2 low to mid-single digit on a full year mid-single digit. That's how we're thinking about it at this stage. We still are opening stores. I mean that's really driving a big chunk of it. I think we opened on a net basis, 20-odd stores in the first half, in the second half, it's 50, 60 stores.

對於第三季度的SG&A，我們認為是中個位數或低個位數，下半年全年中個位數為低至中個位數。這就是我們現階段的想法。我們仍然在開店。我的意思是，這確實推動了很大一部分。我想我們上半年淨開了20多家店，下半年有50、60家店。

So that's really driving most of the SG&A, which is really setting up DTC for the long term. But as I mentioned earlier, discretionary costs, et cetera, et cetera, are fairly tight at this stage.

因此，這確實推動了大部分 SG&A，這實際上是為了長期建立 DTC。但正如我之前提到的，現階段可自由支配成本相當緊張。

Our next question comes from the line of Jim Duffy of Stifel.

我們的下一個問題來自 Stifel 的 Jim Duffy。

More from me on the U.S. consumer environment, but a little more focus on perspective from your stores and DTC. How would you characterize your current promotional backdrop? And Harmit, what's assumed in the outlook for the second half with respect to promotions?

我更多地介紹了美國的消費者環境，但更多地關注了你們商店和 DTC 的觀點。您如何描述當前的促銷背景？哈米特，對於下半年的晉升前景有何假設？

And I'm also curious if you could speak to consumer activity in your U.S. stores in DTC. Are you seeing slowing trends in price resistance from this consumer as well? Are they buying full price? Or is volume driven by promotion?

我也很好奇您是否可以在 DTC 中談談您在美國商店的消費者活動。您是否也看到該消費者的價格抵制趨勢正在放緩？他們購買全價嗎？或者銷量是由促銷推動的？

Yes. So what's assumed in promotions, if you recall, Jim, last year, quarter 4 was fairly promotional. Quarter 3, we began to see some promotion, but quarter 4 was fairly promotional. So our view is quarter 3 is probably promotional, probably slightly less promotional than quarter 2 because inventories are getting better, trade inventories are getting better, our inventory is getting better.

是的。那麼，吉姆，如果你還記得的話，促銷活動中的假設是什麼，去年第四季度的促銷活動相當多。第三季度，我們開始看到一些促銷活動，但第四季度的促銷活動相當多。因此，我們的觀點是，第三季度可能是促銷活動，可能比第二季度的促銷活動稍微少一些，因為庫存越來越好，貿易庫存越來越好，我們的庫存也越來越好。

And quarter 4, it's kind of slightly better than a year ago, and we end H2 probably slightly better than last year H2. That's what we're thinking on promotion at this time. Plus, by taking some pricing actions, in the absence of pricing actions, there were probably deeper promotion on the same fits because people wanted to set by taking pricing actions that will help offset the deeper promotions to an extent.

第四季度，比一年前稍好一些，我們下半年的表現可能比去年下半年略好。這就是我們目前在促銷方面的想法。另外，通過採取一些定價行動，在沒有定價行動的情況下，可能會對相同的商品進行更深層次的促銷，因為人們希望通過採取定價行動來設置，這將有助於在一定程度上抵消更深層次的促銷。

So that's kind of factored in. To your question about our own DTC business and our DTC business in the U.S. is outlets as well as our mainline stores. Our mainline, we're seeing the consumer and largely consumers earning $100,000 plus less price sensitive.

所以這已經被考慮在內了。對於你關於我們自己的 DTC 業務和我們在美國的 DTC 業務的問題，我們的 DTC 業務包括直營店和主線商店。我們的主線是，我們看到消費者，大部分是收入 10 萬美元的消費者，而且對價格不太敏感。

I mean we do promote on days where it's important, like Father's Day, for example, et cetera, et cetera Black Friday will happen, but it's very targeted. And the same cadence we have for our outlets, too. And some of the pricing, some of the Tier-3 products that Chip talked about are also sold in our outlets. So that should adjust for the outlook. But overall, we are seeing less promotions in our own stores than probably in wholesale.

我的意思是，我們確實會在重要的日子進行促銷，例如父親節等，等等，黑色星期五將會發生，但它是非常有針對性的。我們的門店也有同樣的節奏。還有一些定價，Chip談到的一些Tier-3產品也在我們的網點銷售。因此，這應該根據前景進行調整。但總體而言，我們在自己的商店中看到的促銷活動可能少於批發市場的促銷活動。

I guess I would just add one other thing, Jim, is the other thing that is clearly working in our DTC channel is newness and we're right now at end of season. So if you go look online or shop around, you're going to see a lot of sales from us and everybody else because everybody is trying to get ready for the next season. That product will begin hitting the floors later this month, setting us up for back-to-school.

我想我只想補充一件事，吉姆，在我們的 DTC 頻道中明顯起作用的另一件事是新鮮感，而我們現在正處於賽季末。因此，如果您上網查看或貨比三家，您會看到我們和其他所有人的大量銷售，因為每個人都在努力為下一季做好準備。該產品將於本月晚些時候開始上市，為我們重返校園做好準備。

And we're really excited because we're excited about the next season and the product that we've got coming in and some of the collaborations and -- but newness definitely works. And we have no product, no problem selling through product at full price when new products are when it's resonating.

我們真的很興奮，因為我們對下一季、我們即將推出的產品以及一些合作感到興奮——但新鮮感確實有效。我們沒有產品，當新產品引起共鳴時，以全價銷售產品沒有問題。

Our next question comes from the line Dana Telsey with Telsey Advisory Group.

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

As you think about the mass channel, which I think was down 13% in the prior quarter, how did the mass wholesale channel differ from the other wholesale businesses? And then with marketing, given the birthday of the 501, how is marketing being planned in the back half compared to last year? And then CapEx, is that still expected to be the same number around $280 million? Or what are you looking for there?

當你想到大眾渠道時，我認為上一季度下降了 13%，大眾批發渠道與其他批發業務有何不同？然後在營銷方面，考慮到501的生日，與去年相比，下半年的營銷計劃如何？那麼資本支出預計仍將保持在 2.8 億美元左右嗎？或者你在那裡尋找什麼？

So I'll answer the CapEx question, and I'll give the value channel to Chip. But on the CapEx question, I think we had indicated $290-odd million. Our expectation for CapEx is between $290 million and $300 million, something like that. So in and around what we talked about and is largely oriented towards the new (inaudible), Dana, that I talked about and investments to -- on technology really to accelerate our e-commerce business and those are the 2 broad areas. And then we've had some infrastructure CapEx. We opened a digital DTC.

因此，我將回答資本支出問題，並將價值渠道交給 Chip。但在資本支出問題上，我認為我們已經指出了 290 多萬美元。我們對資本支出的預期在 2.9 億美元到 3 億美元之間，大約是這樣。因此，在我們所討論的內容中，主要面向新的（聽不清）Dana，我談到了技術和投資，以真正加速我們的電子商務業務，而這些是兩個廣泛的領域。然後我們有一些基礎設施資本支出。我們開設了數字 DTC。

We just upgraded our ERP and we're building the DTC, which will be an omnichannel DTC in Europe. So that's why we're looking at some infrastructure investments really to propel and service the growth in our growth algorithm.

我們剛剛升級了 ERP，並且正在構建 DTC，這將是歐洲的全渠道 DTC。因此，這就是為什麼我們正在考慮一些基礎設施投資，真正推動和服務我們的增長算法的增長。

Yes. And I may be forgetting the second of the 3-part question, but the mass channel is soft and I think softer in general and the balance of wholesale, this balance of wholesale also includes the Amazon, which is pretty strong right now. But our value brands, and I would say, in general, the mass consumer overall is under pretty tough economically challenged, I guess, and you saw that in their last results their last quarter.

是的。我可能忘記了三部分問題中的第二個，但是大眾渠道很軟，我認為總體上更軟，批發的平衡，這種批發的平衡也包括亞馬遜，它現在相當強大。但我們的價值品牌，我想說，總的來說，大眾消費者總體上面臨著相當嚴峻的經濟挑戰，我猜，你在他們上個季度的最後業績中看到了這一點。

So -- but that is a signature, which sell in that channel, respectively, is down double digits. We do have Levi's at Target. And I would say Levi's at Target is performing roughly in line with how Levi's is performing elsewhere in the wholesale channel.

所以——但這是一個簽名，在該渠道中的銷售量分別下降了兩位數。 Target 確實有 Levi's。我想說，Target 的李維斯 (Levi's) 的表現與批發渠道其他地方的李維斯 (Levi's) 的表現大致一致。

And that's, I think, collectively, our focus with Target is how do we continue to expand on the success that we've had over the last several years with the Levi's at Target. And I think over time, we're going to see trading out floor space for Denizen for more floor space for Levi's. Did you have one other question?

我認為，總的來說，我們對 Target 的關注點是我們如何繼續擴大過去幾年在 Target 的 Levi's 所取得的成功。我認為隨著時間的推移，我們將會看到 Denizen 的佔地面積被 Levi's 的佔地面積所取代。您還有其他問題嗎？

And Dana, your question was, I think, on marketing?

達納，我認為你的問題是關於營銷？

Exactly.

確切地。

Yes. So in the first half, we spent more than a year ago because of the 501 campaign that fell in H1. In the second half, it will be a little less and then we are adjusting our marketing expenses depending on which part of the world is working (inaudible). And so overall, our marketing expenses as a percentage of revenue is slightly lower than a year ago.

是的。所以上半年我們因為H1的501活動花了一年多的時間。下半年，會少一點，然後我們將根據世界哪個地區的情況調整我們的營銷費用（聽不清）。總的來說，我們的營銷費用佔收入的百分比略低於一年前。

Yes. And just, I mean, to be blunt, in the U.S., where U.S. wholesale is down below our plan, we've had to cut advertising expenses in the second half. We did have the 501 campaign globally. Our spending was front-loaded this year. And so we have had to scale back a little bit in the second half, just to kind of balance the books and keep our spending as a percentage of revenue, roughly in line with what we guided originally. But in total dollars, the spending is coming down in the second half, reflecting the softer outlook that we have on the top line.

是的。我的意思是，坦率地說，在美國，美國批發低於我們的計劃，我們不得不削減下半年的廣告費用。我們確實在全球範圍內開展了 501 活動。今年我們的支出是提前的。因此，我們不得不在下半年稍微縮減規模，只是為了平衡賬目並保持我們的支出佔收入的百分比，大致與我們最初的指導一致。但從美元總額來看，下半年的支出正在下降，反映出我們對營收的前景更加疲軟。

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洛朗·瓦西萊斯庫 (Laurent Vasilescu)。

Harmit, Chip, can you hear me?

哈米特，奇普，你能聽到我說話嗎？

Yes, we can.

我們可以。

Fantastic. Just 2 questions, 2 follow-ups (inaudible) question. Harmit, last quarter, you gave us a very helpful bridge around the gross margin, noting product cost was a 200 bps headwind. Promotionality was about 300 bps. Maybe can you just for the audience, can you maybe parse that out for the second quarter? And how much are you expecting in terms of promotions for the second half of the year?

極好的。只有 2 個問題，2 個後續（聽不清）問題。哈米特，上個季度，您在毛利率方面為我們提供了一個非常有幫助的橋樑，並指出產品成本是 200 個基點的逆風。促銷力度約為300個基點。也許你可以只為觀眾，你可以在第二季度解析一下嗎？您對下半年的促銷活動有何預期？

And then a separate question, great to hear on China that is back to pre-COVID level. Maybe Harmit, could you give a little bit of color on just what you're seeing in China? Are seeing sequential improvement every month in that marketplace?

然後是一個單獨的問題，很高興聽到有關中國回到了新冠疫情前水平的消息。也許哈米特（Harmit），您能否對您在中國所看到的情況進行一些描述？該市場每個月是否都在連續改善？

Yes. So I'll quickly help answer both. So H2, in my prepared remarks, I mentioned gross margin versus last year of flat to slightly up relative to a year ago. So I'd say pricing 70 to 80 basis points, adversely impacting.

是的。所以我會很快幫助回答這兩個問題。因此，下半年，在我準備好的發言中，我提到毛利率與去年持平，與去年同期相比略有上升。所以我想說，定價 70 到 80 個基點會產生不利影響。

So if a year ago, COGS second half really offsetting that. So that's why it is largely flat. I mean that's broadly -- there's a little bit of air freight, which is a tailwind. But broadly, that's what's really driving between the 2 factors, pricing and the COGS benefit. And the COGS benefit is less in Q3, more in Q4.

因此，如果一年前，下半年的銷貨成本確實抵消了這一點。這就是為什麼它基本上是平坦的。我的意思是，這是廣泛的——有一點空運，這是一個順風車。但從廣義上講，這才是定價和銷貨成本效益這兩個因素之間真正的驅動因素。第三季度的銷貨成本收益較少，第四季度的收益較多。

So we exit the year with a higher cost benefit that obviously rolls into 2024. To your question in China, Michelle, Chip and I, along with our teams were recently in China. And quarter 2 was a great quarter for them.

因此，我們將以更高的成本效益結束這一年，並且顯然會延續到 2024 年。關於您在中國提出的問題，米歇爾、奇普和我以及我們的團隊最近在中國。第二季度對他們來說是一個偉大的季度。

The business was up big time. Business is higher than '19. As we think about the rest of the year, our Asia guidance, which is higher than last quarter, Asia, I think was in the high teens from a double-digit growth, reflects a slight bounce-back in China as along with the rest of Asia.

生意蒸蒸日上。生意比19年還高。當我們考慮今年剩餘時間時，我們的亞洲指引高於上個季度，我認為亞洲的兩位數增長處於高位，反映出中國和其他地區的輕微反彈亞洲的。

We are going to watch and see what happens and how the business stabilizes in China before we think about China's expectations for 2024. But the team that was there pre-COVID is still there (inaudible) China and the Chinese market is a little different than some markets in Asia, the premium-oriented markets. We're really focused on premiumizing our product offers there, and that seems to be working.

在我們考慮中國對 2024 年的預期之前，我們將觀察中國會發生什麼以及業務如何穩定下來。但是，在新冠疫情之前就在那裡的團隊仍然在那裡（聽不清）中國，而且中國市場與中國市場略有不同。亞洲的一些市場，以高端市場為主。我們確實專注於使我們的產品更加優質，這似乎正在發揮作用。

I think we're going to wrap it there (inaudible) we're out of time, and I just want to thank everybody for dialing in and for your very thoughtful and penetrating questions, and we look forward to speaking with you again next quarter.

我想我們就到此結束（聽不清），我們已經沒有時間了，我只想感謝大家的撥通以及你們提出的非常深思熟慮和深入的​​問題，我們期待下個季度再次與你們交談。

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。