Levi Strauss & Co (LEVI) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. first quarter fiscal 2024 earnings conference call for the period ending February 25, 2024. (Operator Instructions)

女士們、先生們，美好的一天，歡迎參加 Levi Strauss & Co. 截至 2024 年 2 月 25 日的 2024 財年第一季度收益電話會議。（操作員說明）

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.

本次電話會議正在錄音中，未經本公司書面許可，不得全部或部分複製。本次電話會議將透過網路進行廣播，並且可以在公司網站 levistrauss.com 上觀看網路廣播四分之一的重播。

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

我現在想將電話轉給李維斯公司投資者關係副總裁 Aida Orphan。

Thank you for joining us on the call today to discuss the results for our first quarter in 2024. Joining me on today's call are Michelle Gass, our President and CEO; 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 dot levistrauss.com.

感謝您今天參加我們的電話會議，討論 2024 年第一季的業績。參加今天的電話會議的是我們的總裁兼執行長 Michelle Gass；以及我們的財務和成長長 Harmit Singh。我們已在網站的 IR 部分發布了完整的第一季財務業績，投資者請訪問 levistrauss.com。

A link to the webcast of today's conference call can also be found on our site. We'd like to remind you 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.

您也可以在我們的網站上找到今天電話會議網路廣播的連結。我們想提醒您，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有重大差異。

Please review our filings with the SEC in particular, the Risk Factors section of our Form 10-Q that we filed today for the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today, and we assume no obligation to update any of these statements.

請查看我們向 SEC 提交的文件，特別是我們今天提交的 10-Q 表格中的風險因素部分，以了解可能導致我們的結果出現差異的因素。另請注意，本次電話會議的前瞻性陳述是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。

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

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 GAAP 衡量標準無意取代我們的 GAAP 結果，我們的非 GAAP 衡量標準與其最具可比性的 GAAP 衡量標準的調整結果已包含在今天的新聞稿中。

Finally, this call is being webcast on our IR website and a replay of this call will be available on the website shortly. Please note that Michelle and Harmit will be referencing constant currency numbers unless otherwise noted. 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.

最後，該電話會議正在我們的 IR 網站上進行網路直播，並且很快將在該網站上提供該電話會議的重播。請注意，除非另有說明，米歇爾和哈米特將引用固定貨幣數字。今天的通話時間定為一小時。因此，請一次只回答一個問題，以便其他人有機會解決他們的問題。

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

現在我想把電話轉給米歇爾。

Thank you, and welcome everyone to today's call. The year is off to a strong start with both Q1 revenue and adjusted EPS coming in above our expectations. Revenues of $1.6 billion were down 8% on a constant currency basis due to last year's $100 million shift from Q2 into Q1 related to the ERP implementation in the US.

謝謝大家，歡迎大家參加今天的電話會議。今年開局強勁，第一季營收和調整後每股盈餘都超出我們的預期。由於去年與美國 ERP 實施相關的 1 億美元收入從第二季度轉移到第一季度，16 億美元的收入按固定匯率計算下降了 8%。

Excluding this shift as well as the impact from exiting the Denizen business in Russia, Q1 revenues were flat. Adjusted diluted EPS of $0.26 came in better than our expectations, driven by a 240 basis point increase in gross margin and prudently managing our expenses.

排除這一轉變以及退出俄羅斯 Denizen 業務的影響，第一季收入持平。受毛利率成長 240 個基點和謹慎管理開支的推動，調整後攤薄每股收益為 0.26 美元，好於我們的預期。

Our performance this quarter reflects many proof points that our strategies leading with our brands operating as a direct to consumer first business and diversifying our portfolio are working. We are fueling consumer demand resulting in meaningful US share gains in both men's and women's driven by newness and innovation as well as continued strength in our core.

我們本季的業績反映了許多證據，表明我們以直接面向消費者為先的品牌營運和產品組合多元化為主導的策略正在發揮作用。我們正在刺激消費者需求，在新鮮感和創新以及我們核心的持續實力的推動下，美國男性和女性市場份額大幅增長。

We are continuing to see strong momentum in our global direct-to-consumer business, where we have now delivered eight consecutive quarters of robust comp growth. Our e-commerce business again achieved strong growth of 12% on top of mid-teens growth last year.

我們的全球直接面向消費者業務持續保持強勁勢頭，現已連續八個季度實現強勁的複合成長。我們的電子商務業務在去年十幾歲左右的成長基礎上再次實現了 12% 的強勁成長。

And we're particularly excited about the continued acceleration in our overall women's business, which was up 14% and DTC globally for the quarter, we're encouraged by the performance of our largest market, the US we saw sustained progress in GGC., which was up 10%, as well as continued stabilization in U.S. wholesale for the Levi's brand, which was up low single digits.

我們對整體女性業務的持續加速感到特別興奮，本季度全球 DTC 增長了 14%，我們對我們最大的市場美國的表現感到鼓舞，我們看到了 GGC 的持續進展。增長了10%，Levi's 品牌的美國批發市場也持續穩定，增幅較低個位數。

Stepping back, we are building a stronger business in the U.S. underscored by significant growth and operating margin expansion across channels in Q1. And revenue in the global wholesale channel, while down was in line with expectations as the actions we have taken to improve this business are working.

退一步來說，我們正在美國建立更強大的業務，第一季跨通路的顯著成長和營業利潤率擴張凸顯了這一點。全球批發管道的收入雖然有所下降，但符合預期，因為我們為改善這項業務所採取的行動正在發揮作用。

Importantly, global wholesale gross margins increase as both owned and channel inventory levels are much improved and through our transformational pivot to operating as a DTC first company, we are bringing operational rigor and a narrower strategic focus, which will set a solid foundation for sustainable, profitable growth.

重要的是，隨著自有庫存和渠道庫存水平的大幅改善，全球批發毛利率有所提高，並且透過我們轉型為以DTC 為先的公司進行運營，我們正在帶來嚴格的運營和更窄的策略重點，這將為永續發展奠定堅實的基礎。獲利成長。

Through our productivity initiatives, Project Fuel, we remain focused on driving cost efficiencies. And during the quarter, we took concrete actions and rightsizing our organization. In addition, we have activated an initial reduction of nearly 15% of SKUs across our Levi's product assortment and are de-prioritizing footwear.

透過我們的生產力計劃 Project Fuel，我們仍然專注於提高成本效率。在本季度，我們採取了具體行動並調整了我們的組織規模。此外，我們已初步減少了 Levi's 產品系列中近 15% 的 SKU，並取消了鞋類產品的優先順序。

These efforts, together with the recent decision to exit Denizen not only improve our cost structure, but also provide an unlock in simplifying and streamlining how we work. While it's early in the year, we started the year strong and are encouraged by the trends we're seeing in the business. As a result, we are increasing our adjusted diluted EPS guidance for the year. Harmit will share more.

這些努力，加上最近退出 Denizen 的決定，不僅改善了我們的成本結構，而且還為簡化我們的工作方式提供了途徑。雖然現在還處於年初，但我們今年開局強勁，並對我們在業務中看到的趨勢感到鼓舞。因此，我們提高了今年調整後的稀釋每股盈餘指引。哈米特將分享更多。

I will now talk you through the results of the quarter in the context of our strategic priorities starting with our first priority, leading with our brands. First, the jeans category has stabilized in the US now flat to prior year after several years of volatility. Importantly, over the same time, period, Levi's outperformed the category, growing 2 points of share in men's and 1 point of share in women's.

現在，我將在我們的策略重點的背景下向您介紹本季的業績，從我們的首要任務開始，以我們的品牌為主導。首先，經過幾年的波動後，美國的牛仔褲類別已趨於穩定，目前與去年持平。重要的是，在同一時期內，Levi's 的表現優於同類產品，男裝市佔率成長了 2 個百分點，女裝市佔率成長了 1 個百分點。

We are also making progress in our key use target gaining share with 18 to 30 year olds. In the past quarter, Levi's picked up share with the middle income consumer, which is critical. Given these are the largest consumers of the category, we are continuing to outperform the category with higher income consumers, demonstrating the success of our efforts in elevating the brand's market.

我們在關鍵使用目標方面也取得了進展，贏得了 18 至 30 歲人群的份額。在過去的一個季度中，李維斯在中等收入消費者中的份額有所上升，這一點至關重要。鑑於這些是該類別中最大的消費者，我們的表現將繼續優於收入較高消費者的類別，這證明了我們在提升品牌市場方面所做努力的成功。

Share growth is being driven by the exciting innovation we are bringing to the category as well as our ongoing commitment to keeping the brand at the center of culture, driving deep connections with fans around the world.

我們為該類別帶來的令人興奮的創新，以及我們持續致力於將品牌置於文化中心，推動與世界各地粉絲的深入聯繫，推動了份額成長。

Just last week, we reaffirmed our place of the center of culture with the launch of our global breakthrough and interactive Live in Levi's campaign as part of a digitally led 360 degree media activation that kicked off with our advertising film. The floor is yours. We're inviting everyone to participate in a GM open call across social media platforms for a chance to showcase their talent and Levi's style in an exclusive new music video.

就在上週，我們推出了全球突破性的互動 Live in Levi's 活動，重申了我們作為文化中心的地位，這是以我們的廣告片拉開序幕的數位化 360 度媒體活動的一部分。地板是你的。我們邀請所有人參加跨社交媒體平台的 GM 公開徵集，以便有機會在獨家的新音樂視頻中展示他們的才華和 Levi's 風格。

Moving to product, we continue to see strong performance in our core offerings while also introducing newness and innovation in denim and beyond. A clear barometer for the strength of our core business, the 501 was up 23% in DTC on top of 32% growth in the prior year.

轉向產品，我們繼續看到我們的核心產品表現強勁，同時也在牛仔布及其他領域推出新穎和創新。作為我們核心業務實力的明確晴雨表，501 的 DTC 在上一年增長 32% 的基礎上增長了 23%。

We're seeing strength in loose fits for men's and women's both up more than 40% in the quarter. For example, we launched six new bag styles for women for which sales were up 50%. And we continue to see an evolution to low-rise and wider leg openings both performing strongly.

我們發現，寬鬆版型的男裝和女裝在本季均成長了 40% 以上。例如，我們推出了六種新的女包款式，銷量成長了 50%。我們繼續看到低層和更寬腿部開口的演變，兩者都表現強勁。

We see an incredible opportunity to own the head-to-toe denim apparel lifestyle. And in doing so, we expect to expand our addressable market for denim overall, denim, skirts, dresses and jumpsuits again saw positive results, increasing triple digits in the quarter.

我們看到了擁有從頭到腳的牛仔服裝生活方式的絕佳機會。在此過程中，我們預計將擴大牛仔布整體市場，牛仔布、裙子、連身裙和連身褲再次取得積極成果，在本季度實現三位數成長。

We are also seeing strength in our denim tops assortment with our iconic women's Westerns up more than 40%. Looking forward, we are leaning into this opportunity and we're introducing new denim tops silhouettes across blouses course at best and more.

我們還看到了牛仔上衣品種的強勁增長，其中標誌性的女式西部牛仔上衣增長了 40% 以上。展望未來，我們正在抓住這個機會，我們將在襯衫系列中推出新的牛仔上衣款式。

As shared on our last call, we are working on an end to end reset of our tops business, and we're seeing early success with tossed outperforming the overall business, driven by about 10% growth in DTC. We are building out our core central assortment in categories like T-shirts, wovens and polos to provide a perfect pairing to our denim bottoms, and we're investing in capability building, including new key leadership hires.

正如我們在上次電話會議中所分享的，我們正在努力對我們的頂級業務進行端到端的重置，並且在DTC 約10% 增長的推動下，我們看到了早期的成功，其表現優於整體業務。我們正在 T 卹、梭織布和 Polo 衫等品類中打造我們的核心產品系列，以便與我們的牛仔褲完美搭配，並且我們正在投資於能力建設，包括招募新的關鍵領導層。

We recently filled the newly created role of Vice President tops design which will be critical in setting the design direction for Levi's talk, and we are successfully extending our authority in bottoms to categories beyond denim.

我們最近填補了新設立的上裝設計副總裁的職位，這對於為 Levi's 演講設定設計方向至關重要，並且我們正在成功地將我們在下裝領域的權威擴展到牛仔布以外的類別。

We recently launched our active tech pant in the U.S., which has been met with great initial response with demand for the product stronger than expected in both wholesale and DTC. We are chasing into inventory and we're excited to continue fueling this new product line with additional innovations planned throughout this year and next as we roll out this platform globally.

我們最近在美國推出了我們的活性科技長褲，該產品得到了很好的初步反響，批發和 DTC 對該產品的需求都強於預期。我們正在追逐庫存，我們很高興能夠在今年和明年在全球推出這個平台時繼續透過計劃的其他創新來推動這條新產品線的發展。

As we move through the year, we will accelerate newness and drive innovation by extending our non-denim authority into categories like shorts, skirts and dresses for the seasons ahead. And given the positive early trends in our performance, cool and lightweight denim collections. We will continue building out those platforms to bring to the consumer, our innovative denim fabrications, giving them the fit and style they love with a more versatile year-round end use.

隨著這一年的到來，我們將透過將我們的非牛仔權威擴展到未來幾季的短褲、裙子和連身裙等類別，來加速推陳出新並推動創新。鑑於我們的性能、酷感和輕質牛仔布系列的早期積極趨勢。我們將繼續建造這些平台，為消費者帶來我們的創新牛仔布料，為他們提供他們喜歡的合身和風格，以及更通用的全年最終用途。

Shifting to direct to consumer, our second strategic priority. DTC continued to grow rapidly, up 8% on top of 16% growth in the prior year. We achieved these strong results by delivering positive comp sales across our stores, growth in e-commerce and adding new stores.

轉向直接面向消費者，這是我們的第二個策略重點。 DTC 繼續快速成長，在去年 16% 的基礎上成長了 8%。我們透過在商店中實現積極的銷售業績、電子商務的成長以及增加新商店來實現這些強勁的業績。

Increasing productivity and profitability in our stores is a key focus of Project Fuel, and we are gaining traction. Overall for the quarter, we saw increases in traffic, UPT and AUR. in our DTC channels, and we are building bigger baskets through our focus on having the right assortment in the right stores at the right time, more newness drops, which are driving positive momentum and better in-stock positions.

提高商店的生產力和獲利能力是 Project Fuel 的重點，我們正在獲得越來越多的關注。總體而言，本季我們看到流量、UPT 和 AUR 有所增加。在我們的DTC 管道中，我們正在透過專注於在正確的時間在正確的商店提供正確的產品組合來建立更大的購物籃，更多的新品上市，這正在推動積極的勢頭和更好的庫存狀況。

In addition to top line growth, we are seeing a greater degree of leverage on our cost base, such as improving our management of controllable retail costs like optimizing store staffing and scheduling. We're encouraged by these results and have multiple initiatives underway to further improve the four-wall economics of our stores.

除了收入成長之外，我們還看到我們的成本基礎得到了更大程度的利用，例如改善我們對可控零售成本的管理，例如優化商店人員配置和調度。我們對這些結果感到鼓舞，並正在採取多項措施來進一步提高我們商店的四面牆經濟性。

The success we're having in brick and mortar also gives us confidence in our store opening strategy. The majority of net new stores this year will be in Asia where we see a lot of runway for growth. One great example is our recently reopened Kyoto store in Japan and one of the city's most vibrant shopping districts, delivering consumers an immersive shopping experience.

我們在實體店的成功也讓我們對開店策略充滿信心。今年大部分淨新店將位於亞洲，我們看到那裡有很大的成長空間。一個很好的例子是我們最近在日本重新開業的京都店，這是該市最具活力的購物區之一，為消費者提供身臨其境的購物體驗。

This store is representative of the culture and history of the city and features the best of leave Another example is in Europe where we are reopening our Levi's flagship store in Paris, ahead of the summer Olympics, located in the heart of one of the most highly trafficked and desirable shopping destinations in the world Champs-Elysees.

這家商店代表了這座城市的文化和歷史，並具有最好的休假方式。另一個例子是在歐洲，我們在夏季奧運會之前重新開設了位於巴黎的Levi's 旗艦店，該店位於世界上最高的城市之一的中心地帶。香榭麗舍大道是世界上交通繁忙且令人嚮往的購物目的地。

This store will offer Levi's fans from France and around the world for the fullest and best expression of our denim lifestyle offerings. These stores and others coming are representative of our commitment to bringing elevated shopping experiences for the world's most desirable locations while also driving a scalable and profitable to our portfolio.

這家商店將為來自法國和世界各地的 Levi's 粉絲提供最全面、最好的牛仔生活方式產品表達。這些商店和其他即將開業的商店代表了我們的承諾，為世界上最令人嚮往的地點帶來更高的購物體驗，同時也推動我們的產品組合的可擴展性和盈利性。

Our eCommerce business continues to gain momentum, generating 12% growth on top of 14% growth in the prior year. This is a direct result of the investments we've made to enhance the consumer experience including improved search, navigation and filtering capabilities.

我們的電子商務業務持續保持強勁勢頭，在去年 14% 的基礎上實現了 12% 的成長。這是我們為增強消費者體驗而進行的投資的直接結果，包括改進的搜尋、導航和過濾功能。

We are also creating a more engaging experience by upgrading our product imagery and videos, addressing a key consumer need, helping people find the perfect fit as we make our pivot to be a DTC first company.

我們也透過升級產品圖像和影片來創造更具吸引力的體驗，滿足消費者的關鍵需求，幫助人們找到完美的搭配，同時我們致力於成為 DTC 優先的公司。

We remain committed to wholesale and the actions we're taking to elevate our performance in this channel are gaining traction after adjusting for the revenue shift related to the ERP implementation in Q1 2023, the Levi's brand within U.S. wholesale grew for a second consecutive quarter, up low single digits and was substantially more profitable than last year.

我們仍然致力於批發，並且在調整了 2023 年第一季 ERP 實施相關的收入變化後，我們為提升該通路業績而採取的行動正在獲得牽引力，美國批發市場的李維斯品牌連續第二個季度增長，年比成長低個位數，且利潤比去年大幅提高。

We remain encouraged regarding the outlook of our global wholesale business and expect sequential improvement as we move through the year. Improved sell-out trends along with the expanded wholesale assortment, gives us optimism.

我們對全球批發業務的前景仍然感到鼓舞，並預計今年將持續改善。銷售趨勢的改善以及批發品種的擴大讓我們感到樂觀。

Turning now to our third strategy, the diversification of our business. As I referenced earlier, we are pleased with the ongoing momentum we are seeing in our largest market, the US. Beyond that diversifying geographies continues to be a key part of our growth strategy.

現在談談我們的第三個策略，即業務多元化。正如我之前提到的，我們對我們最大的市場美國所看到的持續勢頭感到高興。除此之外，地域多元化仍然是我們成長策略的關鍵部分。

And today, international comprises nearly 60% of total revenues. While international was down 2% in Q1, international DTC grew high single digits, and Asia achieved record revenues in the quarter, driven by double digit top line growth in many markets.

如今，國際業務佔總收入的近 60%。雖然國際業務第一季下降了 2%，但國際 DTC 成長了高個位數，在許多市場兩位數收入成長的推動下，亞洲本季營收創歷史新高。

Let me address Europe. We continue to be pleased with the performance we are seeing in our DTC channel, which was up 4% excluding Russia. We saw notable improvement in our DTC business in response to new force at launched with sequential improvement in the quarter month over month and February up double digits. This strength has continued into March.

讓我向歐洲講話。我們仍然對 DTC 通路的表現感到滿意，不包括俄羅斯，該通路成長了 4%。我們看到我們的 DTC 業務因新力量的推出而顯著改善，季度環比和 2 月份環比增長兩位數。這種強勢一直持續到三月。

While the European wholesale channel has been challenging, our key customers are excited about the amplified denim lifestyle offerings that we are delivering, and we are seeing positive wholesale prebook orders in the second half of the year. We continue to expect the total Europe segment to return to growth in the second half of this year.

儘管歐洲批發管道一直面臨挑戰，但我們的主要客戶對我們提供的豐富的牛仔生活方式產品感到興奮，並且我們在下半年看到了積極的批發預訂訂單。我們繼續預計整個歐洲市場將在今年下半年恢復成長。

Moving to other brands where we continue to make solid progress both beyond yoga and Dockers, expand our portfolio and our addressable market. And when we look at our category portfolio, we are excited about the diversification we are making beyond denim bottoms.

轉向其他品牌，我們繼續在 Yoga 和 Dockers 之外取得紮實進展，擴大我們的產品組合和潛在市場。當我們審視我們的品類組合時，我們對牛仔褲以外的多元化感到興奮。

Dockers sales trends improved versus the prior quarter, down 9% adjusting for the shift in wholesale as strong performance in DTC up 14% was offset by lower wholesale sales. Inventory levels for the Dockers brand has shown sequential improvement and is now at its lowest levels since March of 2023.

Docker 的銷售趨勢較上一季有所改善，根據批發業務的變化調整後下降了 9%，因為 DTC 成長 14% 的強勁表​​現被批發銷售下降所抵消。 Dockers 品牌的庫存水準已連續改善，目前處於 2023 年 3 月以來的最低水準。

We're encouraged by the positive customer reaction to our new product launches, including the recently released Dockers, go pant, the brand's first active pad that has quickly become one of the top selling items in stores across the globe.

我們深受客戶對我們新產品發布的積極反應的鼓舞，其中包括最近發布的 Dockers、go pant，這是該品牌的首款活性護墊，已迅速成為全球商店中最暢銷的商品之一。

Beyond yogurt was up 11% on top of similar growth in the prior year, driven largely by strength in e-commerce. We are making investments to grow brand awareness and unleash the growth potential of this incredible brand.

Beyond yogurt 在去年類似成長的基礎上成長了 11%，這主要是受到電子商務實力的推動。我們正在進行投資以提高品牌知名度並釋放這個令人難以置信的品牌的成長潛力。

In summary, we have started the year strong with many of the headwinds we faced the past 18 months resolve, most notably the congestion in our US distribution centers and accelerating momentum across the world and especially in the US, we are well positioned for the year ahead, and I'm confident in our ability to achieve our objectives for 2024 and beyond.

總而言之，我們以強勁的勢頭開啟了新的一年，克服了過去18 個月所面臨的許多不利因素，最顯著的是我們美國配送中心的擁堵以及全球（尤其是美國）的勢頭加速，我們今年已做好充分準備展望未來，我對我們實現 2024 年及以後目標的能力充滿信心。

And with that, I will turn it over to Harmit to cover the financials.

有了這個，我將把它交給哈米特來負責財務。

Thanks, Michelle. We delivered better than expected results in Q1, driven by continued outperformance in global DTC and stabilization in U.S. wholesale. Most importantly, we achieved these results while also improving the structural economics of the company.

謝謝，米歇爾。在全球 DTC 持續優異表現和美國批發穩定的推動下，我們第一季的業績優於預期。最重要的是，我們在取得這些成果的同時也提高了公司的結構經濟性。

Together, these established a strong base for profitable growth for '24 and years to come. In the quarter, we delivered significant gross margin expansion and we continue to expect further improvement this year and beyond from the structural drivers of our strategy to grow DTC, women's and international and as transitory headwinds continue to shift to tailwinds.

這些共同為 24 年及未來幾年的獲利成長奠定了堅實的基礎。本季度，我們實現了毛利率大幅增長，並且我們繼續預計今年及以後的毛利率將進一步改善，這得益於我們發展DTC、女性和國際業務戰略的結構性驅動因素，並且隨著暫時的逆風持續轉變為順風。

We delivered disciplined cost management while also investing in our key growth initiatives the productivity initiatives we launched in Q1 will drive efficiencies across the Company, both in '24 and '25, while positioning us to realize the growth potential of our business.

我們提供嚴格的成本管理，同時也投資於我們的關鍵成長計劃，我們在第一季推出的生產力計劃將在 24 年和 25 年提高整個公司的效率，同時使我們能夠實現業務的成長潛力。

We expect the combination of margin improvement and operating leverage to enable us to deliver sustainable bottom line growth and greater efficiency and our active inventory and working capital management. It is enabling us to generate strong free cash flow.

我們期望利潤率改善和營運槓桿相結合，使我們能夠實現可持續的利潤成長和更高的效率以及積極的庫存和營運資本管理。它使我們能夠產生強勁的自由現金流。

This allowed us to return cash to shareholders through dividends, restart the stock buyback program and acquired our distributor in Colombia, all consistent with our capital allocation strategy. As we look ahead, based on the trends we are seeing in our business today, we are confident in our ability to deliver accelerated sales in H2 and a position to deliver continued improvement in profitability and margin expansion in 2024. As a result, we are increasing our full-year earnings outlook.

這使我們能夠透過股息向股東返還現金，重啟股票回購計畫並收購我們在哥倫比亞的經銷商，所有這些都符合我們的資本配置策略。展望未來，根據我們今天看到的業務趨勢，我們對下半年加速銷售的能力以及在 2024 年實現盈利能力和利潤率擴張的持續改善充滿信心。因此，我們提高我們的全年盈利預期。

And with that, I will turn to our results. Q1 net revenues were $1.6 billion, reflecting continued momentum in our global direct-to-consumer channel, which grew 8%, up 25% on a two-year stack an acceleration from Q4. Gross margin of 58.2% was better than expected and improved 240 basis points year-over-year.

接下來，我將談談我們的結果。第一季淨收入為 16 億美元，反映了我們的全球直接面向消費者管道的持續成長勢頭，該管道增長了 8%，比第四季度加速增長了 25%，兩年累計增長了 25%。毛利率為58.2%，優於預期，較去年同期提升240個基點。

Expansion was driven by lower product costs the shift to DTC and the fact that wholesale mix was predominantly elevated in the prior year due to the ERP implementation. These factors offset both FX headwinds and the annualization of the strategic price reductions we took in U.S. wholesale in H2 last year.

擴張的推動因素是產品成本降低、轉向 DTC，以及去年由於 ERP 實施而導致批發組合大幅增加。這些因素抵消了外匯不利因素和我們去年下半年在美國批發業務中採取的年化策略降價措施。

Adjusted SG&A expenses in the quarter increased 1.2% to $766 million compared to $757 million last year, slightly better than expectations as we start to see the benefit of our cost control actions, including Project Fuel. Adjusted EBIT margin declined 200 basis points to 9% compared to 11% in the prior year.

與去年的 7.57 億美元相比，本季調整後的 SG&A 費用增加了 1.2%，達到 7.66 億美元，略好於預期，因為我們開始看到包括 Project Fuel 在內的成本控制行動的好處。調整後息稅前利潤率下降 200 個基點至 9%，而前一年為 11%。

The decline was almost entirely due to the sales deleverage resulting from the $100 million ERP shift and adjusted diluted EPS was $0.26 ahead of our expectation, primarily driven by the outperformance in both revenue and gross margin.

這一下降幾乎完全是由於 1 億美元的 ERP 調整帶來的銷售去槓桿化，調整後的攤薄每股收益比我們的預期高出 0.26 美元，這主要是由於收入和毛利率的優異表現。

Before turning to our segment highlights, let me spend a moment on the restructuring charges we took in the quarter. As you know, we launched Project Fuel in January to accelerate profitable growth while driving cost savings.

在討論我們的細分市場亮點之前，讓我先花點時間談談我們在本季度承擔的重組費用。如您所知，我們在一月份推出了 Project Fuel，以加速獲利成長，同時推動成本節約。

Since then we have taken actions to streamline our organization structure with the elimination of approximately 12% of our global workforce. Other actions being implemented will improve DTC productivity and SG&A as we deliver savings across indirect procurement and other initiatives.

從那時起，我們採取行動精簡我們的組織結構，裁減了全球約 12% 的員工。正在實施的其他行動將提高 DTC 生產力和 SG&A，因為我們透過間接採購和其他措施實現了節省。

We've also made the decision to close our manufacturing facility in Poland as we optimize our supply chain, both enable agility and lower cost and after a strategic review of our category, we have taken the decision to wind down our small Levi's footwear business.

我們也決定關閉在波蘭的製造工廠，以優化我們的供應鏈，既實現敏捷性又降低成本，並且在對我們的品類進行戰略審查後，我們決定關閉我們的小型李維斯鞋類業務。

This, along with the decision to exit Denizen last quarter will help our plans to unlock the true potential of the Levi's brand globally. These actions put us on the path to achieve approximately $100 million in savings in 2024 and more in 2025.

這一點，加上上季度退出 Denizen 的決定，將有助於我們的計劃在全球釋放 Levi's 品牌的真正潛力。這些行動使我們能夠在 2024 年節省約 1 億美元，並在 2025 年節省更多。

Now let's review the key highlights by segment. In the Americas, 11% growth in DTC was more than offset by a decrease in wholesale, largely due to the shift in wholesale shipments in the prior operating margin increased 160 basis points to 18% due to increased gross margin across both channels and lower SG&A. This was largely driven by our U.S. business, which is more profitable today than last year.

現在讓我們按細分市場回顧一下主要亮點。在美洲，DTC 11% 的成長被批發量的下降所抵消，這主要是由於批發出貨量的變化，先前的營業利潤率增加了160 個基點至18%，這是由於兩個管道的毛利率增加以及SG&A 降低。這主要是由我們的美國業務推動的，該業務今天的利潤比去年更高。

We also just closed our acquisition of our Levi's brand distributor in Colombia, including approximately 40 owned and operated Levi's retail stores. This transaction further underscores the tremendous opportunity that exists to accelerate DTC growth within Latin America and further diversify our business geographically.

我們也剛完成了對哥倫比亞 Levi's 品牌經銷商的收購，其中包括約 40 家擁有和經營的 Levi's 零售店。這項交易進一步凸顯了加速 DTC 在拉丁美洲的成長和進一步實現我們業務地理多元化的巨大機會。

This follows a very successful 2019 acquisition of our distributor in Chile, Peru and Bolivia that has significantly surpassed our revenue and profitability expectations. And we are very optimistic on the outlook for the business in Colombia.

在此之前，我們在 2019 年非常成功地收購了我們在智利、秘魯和玻利維亞的經銷商，這大大超出了我們的收入和獲利預期。我們對哥倫比亞的業務前景非常樂觀。

In Europe, DTC net revenues increased 4%, excluding Russia, growth was driven by positive performance in company-operated stores and in e-commerce. Wholesale net revenues decreased 13%, excluding Russia as wholesale orders from our retail partners remain conservative.

在歐洲，DTC 淨收入成長了 4%（不包括俄羅斯），成長是由公司自營商店和電子商務的積極業績推動的。批發淨收入下降 13%（不包括俄羅斯），因為我們的零售合作夥伴的批發訂單仍然保守。

As Michelle mentioned, we are encouraged by the momentum we are seeing in our DTC business and coupled with positive inflection in our wholesale order book in the second half gives us confidence that Europe will grow in H2. In terms of profitability, gross margins were up 200 basis points, driven by an increase across both channels and most markets in the segment.

正如米歇爾所提到的，我們對 DTC 業務的勢頭感到鼓舞，再加上下半年批發訂單的積極變化，讓我們對歐洲下半年的成長充滿信心。在獲利能力方面，由於兩個管道和該領域大多數市場的成長，毛利率增加了 200 個基點。

Asia net revenues increased 5% compared to the prior year and is up 27% on a two-year stack. DTC revenues increased 7%, driven by strength in Company-operated mainline and outlet stores and in e-commerce. And wholesale, net revenues increased 3%.

亞洲淨收入較前一年增長 5%，兩年間增長 27%。在公司經營的主線店、直銷店以及電子商務實力的推動下，DTC 營收成長了 7%。批發淨收入成長了 3%。

While a relatively small business for us, we experienced a slower than expected recovery in China. We have several initiatives in place to improve our business performance in this market, including ramping up a local product engine. Excluding China and the impact of the Middle East, this segment was up 8%. We are still long in Asia and remain confident of our plans to drive high single digit growth in this region.

雖然我們的業務相對較小，但我們在中國的復甦速度慢於預期。我們採取了多項措施來提高我們在這個市場的業務績效，包括加強本地產品引擎。排除中國和中東的影響，該細分市場成長了 8%。我們仍然在亞洲做多，並對我們推動該地區高個位數成長的計劃充滿信心。

So looking to our balance sheet and cash flows, reported inventory dollars decreased 14%, or 21%, excluding the impact of the modification of terms with the majority of our suppliers. Comparable inventory in the US remained significantly below last year's level, and we continued to make progress in Q1.

因此，從我們的資產負債表和現金流量來看，報告的庫存美元下降了 14%，即 21%，不包括與大多數供應商的條款修改的影響。美國的可比庫存仍顯著低於去年水平，我們在第一季繼續取得進展。

Overall inventory is also expected to end the year below prior levels as we work to further optimize inventories by improving turns and driving more assortment productivity.

隨著我們努力透過提高週轉率和提高品種生產率來進一步優化庫存，預計年底整體庫存也將低於先前的水準。

Adjusted free cash flow was $214 million in the quarter, positive for the second quarter in a row as we manage inventory and working capital. We also expect to end the year with positive free cash flow. Our improved cash flow position enabled us to return $73 million to our shareholders in the form of dividends and the re-initiation of share buybacks.

本季調整後自由現金流為 2.14 億美元，由於我們管理庫存和營運資金，連續第二季為正。我們也預計年底將實現正自由現金流。我們改善的現金流狀況使我們能夠以股息和重新啟動股票回購的形式向股東返還 7,300 萬美元。

In the quarter, we paid out $48 million in dividends and spent $25 million in repurchasing shares. We also announced Q2 dividend at $0.12 a share, maintaining the Q1 dividend per share.

本季度，我們支付了 4,800 萬美元的股息，並花了 2,500 萬美元回購股票。我們也宣布第二季股利為每股 0.12 美元，維持第一季每股股息。

Now let's turn to our fiscal 2024 outlook. Looking forward, we remain confident in the strength of our brand and the execution of our strategy. We are pleased with the trends in both the category and our business that we saw in the first quarter, and these have continued into March.

現在讓我們轉向 2024 財年展望。展望未來，我們對我們品牌的實力和策略的執行仍然充滿信心。我們對該類別和我們在第一季看到的業務趨勢感到滿意，並且這些趨勢一直持續到三月。

However, given that we just started the year, we're taking a prudent approach to our revenue outlook while raising our full-year adjusted diluted EPS guidance slightly. With that in mind, we are affirming our full-year outlook of 1% to 3% revenue growth, incremental headwinds from FX in Asia will be offset with the impact of the Columbia acquisition. We now expect full-year gross margins to be up about 150 basis points, which is the high end of our previously guided range.

然而，鑑於今年才剛開始，我們對收入前景採取審慎態度，同時小幅提高全年調整後攤薄每股收益指引。考慮到這一點，我們確認全年營收成長 1% 至 3% 的預期，亞洲外匯帶來的增量阻力將被哥倫比亞收購的影響所抵銷。我們現在預計全年毛利率將上漲約 150 個基點，這是我們先前指導範圍的上限。

Turning to earnings, we are raising our adjusted diluted EPS estimate by $0.02 to $1.17 to $1.27. Given our strong gross margin results and our continued commitment to expense discipline. As we look into the second quarter, we continue to expect revenue to be up high single digits.

談到獲利，我們將調整後稀釋每股收益預期上調 0.02 美元至 1.17 美元至 1.27 美元。鑑於我們強勁的毛利率表現以及我們對費用紀律的持續承諾。當我們展望第二季時，我們仍然預期營收將成長高個位數。

The Q2 revenue guidance reflects the shift in the ERP implementation and the exit of the Denizen business, we expect gross margins to be down approximately 50 basis points due to the higher concentration of DTC. in the second quarter of '23, given the ERP implementation that took place in that quarter. Overall, H1 gross margins will be up approximately 100 basis points, and we expect adjusted diluted EPS to be about $0.1 in quarter two, 150% higher than prior.

第二季營收指引反映了 ERP 實施的轉變和 Denizen 業務的退出，我們預計由於 DTC 集中度較高，毛利率將下降約 50 個基點。鑑於 ERP 的實施是在 2023 年第二季進行的。總體而言，上半年毛利率將上升約 100 個基點，我們預計第二季調整後稀釋後每股收益約為 0.1 美元，比之前高出 150%。

Before we begin Q&A, there are two points I would like to make. First. We are confident in our ability to grow the top line mid-single digit in the second half. We are seeing continued momentum in DTC globally, green shoots in the wholesale channel and encouraging trends in the US.

在開始問答之前，我想先說兩點。第一的。我們對下半年實現營收中個位數成長的能力充滿信心。我們看到全球 DTC 的持續成長勢頭、批發管道的萌芽以及美國令人鼓舞的趨勢。

Our product pipeline is resonating with consumers and positions us to continue to grow market share based on the strength of our new offerings in European DTC and the positive pre-book In wholesale, we remain confident that Europe will return to growth in the second half. And in addition to the stores we acquired with the Columbia acquisition, we are also on pace to open 100 plus net new system stores globally in 2024.

我們的產品線引起了消費者的共鳴，並使我們能夠根據歐洲 DTC 新產品的實力和積極的批發預訂量繼續擴大市場份額，我們仍然有信心歐洲將在下半年恢復成長。除了透過收購 Columbia 獲得的商店外，我們還計劃在 2024 年之前在全球開設 100 多家新系統商店。

Second, we remain focused on driving improved profitability and cash flow while being committed to deliver 15% operating margins over the longer term, we are confident in our ability to drive margin expansion through gross margin execution and expense discipline.

其次，我們仍專注於提高獲利能力和現金流，同時致力於長期實現 15% 的營業利潤率，我們對透過毛利率執行和費用控制推動利潤率擴張的能力充滿信心。

The benefits from of Project Fuel initiatives are just starting to unfold, which will continue to improve the agility and the efficiency of our business. And we will also continue to deliver positive free cash flow through inventory and working capital management.

Project Fuel 計畫的好處才剛開始顯現，這將繼續提高我們業務的敏捷性和效率。我們也將繼續透過庫存和營運資金管理提供積極的自由現金流。

To close these actions give us confidence in delivering our '24 commitments while setting the foundation for profitable long-term growth and enabling the Company to deliver solid returns to our stakeholders. Amid that, I will go ahead and open up lined for Q&A.

這些行動的完成使我們有信心履行我們的 24 小時承諾，同時為盈利性長期成長奠定基礎，並使公司能夠為我們的利害關係人帶來豐厚的回報。在此期間，我將繼續開放並進行問答。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Bob Drbul, Guggenheim.

鮑勃·德布爾，古根漢。

Hi, good afternoon. I was wondering, I think you mentioned on the call a market share gains in some recent category trends. Just wondering if you could share some more around what you're seeing and where you feel like the market share gains have come from? Thanks

嗨，下午好。我想知道，我想您在電話會議上提到了最近一些類別趨勢中市場份額的增長。只是想知道您是否可以分享更多有關您所看到的以及您認為市場份額增長來自何處的信息？謝謝

Thanks Bob, thanks for the question. And yes, first, of all, we are really excited about what we're seeing in the category right now. So let's start with our biggest market in the US that after a couple of years of volatility, we're seeing the jeans category actually stabilize, and it's now flat to prior year.

謝謝鮑勃，謝謝你的提問。是的，首先，我們對目前在該類別中看到的內容感到非常興奮。因此，讓我們從美國最大的市場開始，經過幾年的波動，我們看到牛仔褲類別實際上穩定下來，現在與去年持平。

But I think most importantly, we're seeing market share gains with the Levi's brand in the men's category, we saw 2 points of share gain. And in women's, we were up 1 point. And then underneath that, some really great proof points around our strategies.

但我認為最重要的是，我們看到李維斯品牌在男裝類別中的市佔率有所成長，我們看到了 2 個百分點的市佔率成長。在女子組比賽中，我們領先 1 分。在此之下，有一些關於我們策略的非常好的證據。

First, we continue to be committed to driving the business with use in our key target, the 18 to 30 year olds. We're seeing share gains there and around the middle income consumer, which is a big part of the market, 40% of the category. We're seeing the category grow there as well as grow with Levi's.

首先，我們繼續致力於透過我們的主要目標（18 至 30 歲）來推動業務發展。我們看到中等收入消費者的份額增加，他們佔市場的很大一部分，佔該類別的 40%。我們看到該品類在那裡不斷發展，也隨著李維斯 (Levi's) 一起發展。

We're continuing to pick up share with that higher income consumer as we focus on elevating the brand and really attributable to everything we're doing to drive our initiatives in DTC. in the US, DTC. was up 10%.

隨著我們專注於提升品牌，我們將繼續提高在高收入消費者中的份額，這確實歸功於我們為推動 DTC 舉措所做的一切。在美國，DTC。上漲了10%。

So within denim, we're feeling good. And I think you can you can look around even here in the US and it's a denim moment. I mean, there's a lot happening in denim and for Levi's, you know, we're the top are driving the trends. We're excited about everything we're doing, head-to-toe denim dressing on that's really resonating across our male and female customers.

所以在牛仔布領域，我們感覺很好。我想，即使在美國，你也可以環顧四周，這是一個牛仔時刻。我的意思是，牛仔布領域發生了很多變化，對於 Levi's 來說，我們是引領潮流的頂尖品牌。我們對所做的一切感到興奮，從頭到腳的牛仔裝確實引起了我們的男性和女性顧客的共鳴。

And on that note, we're expanding our addressable market. So please first start with the evolution from being all about denim bottoms to denim, lifestyle categories like skirts and dresses, those are up triple digits in the quarter. Amazing our tops business, which we've been talking about for some time, whether that's denim tops or perfect pairing, that was up 10% and DTC also outperforming.

在這一點上，我們正​​在擴大我們的目標市場。因此，請先從牛仔布下裝到牛仔布、裙子和連身裙等生活方式類別的演變開始，這些類別在本季度增長了三位數。我們的上衣業務令人驚嘆，我們已經討論了一段時間，無論是牛仔上衣還是完美搭配，都成長了 10%，DTC 也表現出色。

So a lot of our great proof points. And then beyond that and around non-denim, and we're seeing great strides there as well from non-denim was up 13% and DTC for Q1 representing 42% of our DTC channel.

我們有很多很好的證據。除此之外，在非牛仔布領域，我們看到非牛仔布也取得了巨大進步，成長了 13%，第一季的 DTC 占我們 DTC 頻道的 42%。

And we're seeing that in categories like the double X, Gino and our new introduction on the active tech payout, which is doing really well, both in wholesale and in DTC and back on exceeding expectations, we're chasing into inventory.

我們看到，在雙 X、Gino 和我們新推出的主動技術支付等類別中，無論是在批發方面還是在 DTC 方面都表現非常好，並且超出了預期，我們正在追逐庫存。

And then I would just say around women's is a key focus for us, but a third of our business today, we see that over time getting to half of our business now from fashion bottoms, like I said, skirts, dresses, tops and women's. overall DTC was up 14% for the quarter, but in the US, it was up 19%.

然後我想說，女裝是我們的重點關注點，但我們今天三分之一的業務，隨著時間的推移，我們看到現在一半的業務來自時尚下裝，就像我說的，裙子、連身裙、上衣和女裝。本季 DTC 整體成長了 14%，但在美國，成長了 19%。

So I can go on and on Bob, but there's you know, there's so many great proof points that our strategies are gaining traction.

所以我可以繼續談論鮑勃，但你知道，有很多很好的證據表明我們的策略正在獲得關注。

And the last thing I would say that's all around the US, but as we think about globally on the denim market is expected to continue to grow at up mid-single digits. So now we fully expect to grow with the category, but we also expect to exceed it and drive market share.

我要說的最後一件事是在美國各地，但當我們考慮全球牛仔布市場時，預計將繼續以中個位數成長。因此，現在我們完全期望與該類別一起成長，但我們也期望超越它並提高市場份額。

Thank you.

謝謝。

Thanks Bob.

謝謝鮑勃。

Thank you. Laurent Vasilescu, BNP Paribas.

謝謝。洛朗·瓦西萊斯庫，法國巴黎銀行。

Thanks very much for taking my question, Michelle Harmit, I know that you're encouraged by trends in Europe. There's a lot of fear on Europe since yesterday morning, security. Just to get your take on what you're seeing in that market by region, should we still see Europe grow low single digits for the year?

非常感謝您提出我的問題，米歇爾·哈米特，我知道您對歐洲的趨勢感到鼓舞。從昨天早上開始，歐洲就存在著許多安全上的擔憂。為了了解您對按地區劃分的市場的看法，我們是否仍會看到歐洲今年以較低的個位數成長？

And then separately, I know I know Beyonce his album was just dropped a few days ago, but curious to know if you're seeing any boost from her Levi's titles,

然後分別來說，我知道碧昂絲的專輯幾天前剛被下架，但很想知道你是否看到她的 Levi's 專輯有任何提升，

Hey Laurent, Micheal here. I'll take I'll take both your questions.

嘿，勞倫特，邁克爾在這裡。我會回答你的兩個問題。

Well, first of all as it relates to Europe, you know, as we shared on the call, it was really Europe wholesale and where we had a tough quarter there. And I'd say that was largely due to some of the macro pressures as well as our own product deliveries. And we feel like the product side, we've corrected that. I'll get to that in a moment.

嗯，首先，因為它與歐洲有關，你知道，正如我們在電話中分享的那樣，這確實是歐洲批發市場，我們在那裡度過了一個艱難的季度。我想說這主要是由於一些宏觀壓力以及我們自己的產品交付。我們覺得在產品方面，我們已經糾正了這一點。我稍後會講到這一點。

But yes, overall, we feel really good about Levi's in Europe. I mean, the brand continues to be very strong. And we measure we have many measures against our brand health, our brand boasts the highest unaided awareness. All of our denim perceptions on remain best in class.

但總體而言，我們對歐洲的李維斯 (Levi's) 感覺非常好。我的意思是，該品牌仍然非常強大。我們衡量我們有很多針對我們品牌健康的措施，我們的品牌擁有最高的獨立意識。我們對牛仔布的所有看法仍然是同類中最好的。

We're actually seeing increases in Europe on relevance, preference and even head to toe denim. So those things are all headed in the right direction. And then a huge proof point for us, of course, is how the consumer is responding to our direct channel, both our stores and e-commerce.

事實上，我們看到歐洲的相關性、偏好甚至從頭到腳的牛仔布都在增加。所以這些事情都在朝著正確的方向發展。當然，對我們來說一個重要的證據是消費者對我們的直接管道（包括我們的商店和電子商務）的反應。

And overall, our DTC business in Europe, excluding Russia, was up 4%. I think importantly, we saw that accelerate during the quarter. And in February, DTC was double digit and that carried on into March, and that was largely driven off of our new product.

總體而言，我們在歐洲（不包括俄羅斯）的 DTC 業務成長了 4%。我認為重要的是，我們在本季度看到了這種加速。 2 月份，DTC 達到兩位數，並且一直持續到 3 月份，這在很大程度上是由我們的新產品推動的。

So what time we're seeing really in many markets, I'm just elaborating in the US, but in Europe as well. The consumer is responding to the fashion we're bringing. So women's fashion, the looser fit the bag. You said on the low-rise also the rib cage, all doing well on men's, we're also seeing the baggage trend take hold. Our tops business is improving so that new product is what's driving DGC. and what we expect will drive also in the wholesale side.

因此，我們在許多市場上看到的實際情況是什麼，我只是在美國詳細說明，但在歐洲也是如此。消費者正在對我們帶來的時尚做出反應。所以女性時尚，包包越寬鬆越好。你說低層的還有胸腔，在男裝上都表現良好，我們也看到了行李趨勢的發展。我們的主要業務正在不斷改善，因此新產品是 DGC 的推動力。我們預計批發方面也會受到推動。

So while a softer quarter this past quarter for Europe and wholesale, we're expecting improvement, especially in the back half. And to me, the biggest evidence of that is that our prebooks for Europe are up for the back half of the year. So we are expecting Europe overall to return to growth in the back half of the year.

因此，雖然上個季度歐洲和批發市場疲軟，但我們預計情況會有所改善，尤其是下半年。對我來說，最大的證據是我們針對歐洲的預售書將在今年下半年上市。因此，我們預計歐洲整體將在今年下半年恢復成長。

Laurent, to your question about the full year, yes, we do fund that Europe will be up low-single digits.

勞倫特，對於你關於全年的問題，是的，我們確實資助歐洲經濟將實現低個位數成長。

And a nagging question, Jan Beyoncé and I would just say that denim is having a moment and the Levi's brand is having a powerful moment around the world. I mean, you see head-to-toe denim everywhere around the world.

還有一個令人煩惱的問題，Jan Beyoncé 和我只想說，牛仔布正在風靡全球，而 Levi's 品牌正在全球範圍內風靡一時。我的意思是，你在世界各地都能看到從頭到腳的牛仔褲。

Western is really trending and Western trending in fashion and in music, as you just said, and you know, one of the things that really you don't really it's significant about the Levi's brand and we put up quite a lot of emphasis and investment is making sure that the Levi's brand remains in the center of culture.

西方確實很流行，西方在時尚和音樂方面也很流行，正如你剛才所說，你知道，你確實不知道的一件事是，李維斯品牌非常重要，我們投入了大量的重視和投資確保Levi's 品牌始終處於文化中心。

And I don't think there's any better evidence or proof point than having someone like Beyonce, who's a culture shaper to actually name Asam after us, though, we're super proud of that. We're very, very honored that someone like Beyonce would actually be a winner for Nissan.

我認為沒有比碧昂絲這樣的人更好的證據或證據了，她是一位文化塑造者，以我們的名字命名阿薩姆，但我們對此感到非常自豪。我們非常非常榮幸像碧昂絲這樣的人實際上會成為日產的贏家。

Great. Thank you very much.

偉大的。非常感謝。

Thanks, Laurent.

謝謝，洛朗。

Thank you. Dana Telsey, Telsey Advisory Group.

謝謝。達納‧特爾西，特爾西諮詢小組。

Hi, good afternoon. Good afternoon, everyone, and nice to see the progress. Michelle, and Harmit. (multiple speakers) Hi, you talked about stabilization in U.S. wholesale. Was it was the department stores, off-price, the discounters, what did you see in U.S. wholesale? And what's your outlook going forward?

嗨，下午好。大家下午好，很高興看到進展。米歇爾和哈米特。 （多個發言者）嗨，您談到了美國批發市場的穩定。是百貨公司、折扣店、折扣店，你在美國批發中看到了什麼？您對未來有何展望？

And Harmit, you mentioned inventory levels, so the gross margin uptick and guidance for the year? And is there any specific drivers of gross margin as you go through the year and any shaping of gross margin that we should be mindful of given comparisons to last year? Thank you.

哈米特，您提到了庫存水平，那麼今年的毛利率上升和指導？在這一年中，是否有任何具體的毛利率驅動因素以及我們應該注意與去年相比的毛利率的任何變化？謝謝。

You know, I'll take the first one and then Harmit can take that second question. So as it relates to wholesale, really where we're seeing the improvement is, I'll call it in full price wholesale. So it is in our partners, largely in department stores, and we're really excited with the progress.

你知道，我會回答第一個問題，然後哈米特可以回答第二個問題。因此，就批發而言，我們真正看到的改進是，我將其稱為全價批發。我們的合作夥伴（主要是百貨公司）也是如此，我們對這一進展感到非常興奮。

So far, the Levi's brand, U.S. wholesale, this past quarter, we were positive second consecutive quarter of being positive sell in, and we're also seeing improved sell-out in that channel. And it really is a direct reaction to the actions that we've taken say the congestion issues that we had last year in the supply chain are long behind us.

到目前為止，李維斯品牌，美國批發，上個季度，我們連續第二個季度積極銷售，我們也看到該通路的銷售有所改善。這確實是對我們採取的行動的直接反應，去年供應鏈的擁塞問題早已成為過去。

So we are billing at rates, we need to add at normalized levels I'd say the partnerships with our hotel partners have are very, very strong. I mean, this is an important channel as Levi's is an important brand to them. And in I would say, while we talk about rewiring, the company are becoming organized around a DTC. first mentality.

因此，我們按費率計費，我們需要按標準化水平添加，我想說與我們的酒店合作夥伴的合作關係非常非常牢固。我的意思是，這是一個重要的管道，因為李維斯對他們來說是一個重要的品牌。我想說的是，當我們談論重新佈線時，公司正在圍繞 DTC 進行組織。第一心態。

It's our DTC only, wholesale will continue to play a really important role to amplify our brands and to reach consumers where otherwise we win. So it's really important that we win together with these wholesale partners.

這只是我們的 DTC，批發將繼續發揮非常重要的作用，以擴大我們的品牌並吸引消費者，否則我們會贏。因此，我們與這些批發合作夥伴共同獲勝非常重要。

But as I said, we're seeing momentum in both sell-in and sell-out. And the single biggest reason is product. And we're bringing a lot of newness to the channel and newness the call in our core denim bottoms and the core is continuing to work.

但正如我所說，我們看到了賣出和賣出的勢頭。最大的原因是產品。我們為管道帶來了很多新鮮感，我們的核心牛仔短褲和核心仍在繼續發揮作用。

I mean, I mentioned earlier on in the remarks that we're seeing great traction ongoing with the five oh one, but we're also in the denim cycle of looser bag, you're definitely seeing it women's, but also seeing in men's, though, we're excited for men's to expand their closet with looser fits as well. And for women, there's so much going on, as Lou said, there's Baguio there is low rise, yes, rib cage on high-rise continues to do well.

我的意思是，我之前在評論中提到，我們看到五哦一的巨大吸引力，但我們也處於寬鬆包的牛仔布週期中，你肯定會看到它是女式的，但也看到了男式的不過，我們很高興男士也能以寬鬆的款式來擴大他們的衣櫥。對於女性來說，發生了很多事情，正如盧所說，有碧瑤，有低層建築，是的，高層建築的肋骨繼續表現良好。

And then also what's happening in fabrications, fabric innovation. So and having denim that people can wear year-round. So performance cool is one of the innovations that actually started to solve the need in Asia with warm temperatures.

然後還有製造、布料創新方面正在發生的事情。因此，擁有人們可以全年穿著的牛仔布。因此，性能涼爽是真正開始解決亞洲溫暖需求的創新之一。

I'd say last year we made comments on that when the when the season got really hot, we didn't have enough offerings satisfy that need. We're now spending performance coal around the world, which we expect is going to really help, you know, our year as we look ahead.

我想說，去年我們曾評論過，當季節變得非常炎熱時，我們沒有足夠的產品來滿足這種需求。我們現在在世界各地消耗高性能煤炭，我們預計這將真正幫助我們展望未來的一年。

And I think in particular in Europe, as I was just talking about momentum there and here in the US as well that being picked up by wholesale partners, too. Lightweight went to lightweight denim as well as part of this warm weather solution.

我認為尤其是在歐洲，因為我剛剛談論了美國和那裡的勢頭，以及批發合作夥伴的勢頭。輕質牛仔布也是這種溫暖天氣解決方案的一部分。

And then of course, there's non-denim and we have been. So pleased to see the response in the non-denim areas with our latest innovation being the Tech Pack, which is just getting started in DTC and wholesale off to a great start is exceeding our expectations. We're chasing into inventory, and we have more expansions of the platform to come this year.

當然，還有非牛仔布，我們也有過。很高興看到我們最新的創新技術包在非牛仔布領域的反響，該技術包剛剛在 DTC 中起步，並且批發取得了良好的開端，超出了我們的預期。我們正在追逐庫存，今年我們還將對該平台進行更多擴展。

So there's a lot working. We'll stay really close to our partners to make it make sure that we can maintain and build on that momentum.

所以有很多工作要做。我們將與合作夥伴保持密切聯繫，以確保我們能夠維持並鞏固這一勢頭。

And then a real question on gross margins. A strong start to the year and that has allowed us to raise the full year expectation, as you've heard. So what's driving the strong start to the year in our product costs in coming to normal levels? So if you think about the $240 million -- 240 basis points, about 150 basis points is driven by product costs, but 110 is driven by the mix of DTC, half of that is the SAP ERP implementation that impacted Q1 of that have continued growth in our DTC business and the structural improvements in international, et cetera, as well as the strong women's business.

然後是關於毛利率的真正問題。正如您所聽到的，今年的良好開局使我們能夠提高全年預期。那麼，是什麼推動我們的產品成本在今年開局強勁，達到正常水平？因此，如果你考慮一下 2.4 億美元——240 個基點，大約 150 個基點是由產品成本驅動的，但 110 個基點是由 DTC 組合驅動的，其中一半是影響第一季度持續增長的 SAP ERP 實施我們的DTC 業務和國際業務的結構改進等等，以及強大的女性業務。

In the quarter, FX was a headwind, and in the quarter, we are analyzing the pricing initiatives that we reduced prices in quarter three of last year. So that's really Q1. Q2, you know, and as you probably know, if you go back and look at history, Q2 gross margins traditionally a lower than Q1, largely due to channel mix and is usually about 100 basis points lower than Q1.

在本季度，外匯是一個逆風，在本季度，我們正在分析去年第三季降價的定價措施。這確實是第一季。第二季度，你知道，而且你可能知道，如果你回顧歷史，第二季度的毛利率傳統上低於第一季度，這主要是由於通路混合，通常比第一季度低約 100 個基點。

However, we expect Q2 to be around 58.2%, and that is practically a record high by the only time we had a higher margin in Q2 was last year because DTC was a bigger piece of the business. So the underlying factors which is product cost, lower product costs, lower airfreight and others continue, you know, through or through Q2.

然而，我們預計第二季的利潤率將達到 58.2% 左右，這實際上是我們去年第二季唯一一次利潤率較高的歷史新高，因為 DTC 佔業務的比重更大。因此，產品成本、產品成本降低、空運價格降低等潛在因素在整個第二季都會持續存在。

FX was a bit of a tailwind a year ago. It's a bit of a headwind this year, and it's largely a first half issue. So we expect H1 gross margin to be about 100 basis points better than a year ago. Second half of the year, gross margin should be up about 200 basis points, largely because we would have analyzed the price reduction and weak and DTC will momentum, we believe will continue to extra. So that's helped gross margins. So that's how we're thinking about gross margin between H1 and H2 and on a full-year basis.

一年前，外匯市場有點順風順水。今年有點逆風，而且很大程度是上半年的問題。因此，我們預計上半年毛利率將比一年前提高約 100 個基點。下半年，毛利率應該會上漲約200個基點，很大程度上是因為我們分析了價格下調和DTC動力的疲軟，我們相信會繼續上漲。所以這有助於提高毛利率。這就是我們對上半年和下半年毛利率以及全年毛利率的看法。

Thank you very much.

非常感謝。

Thanks, Dana.

謝謝，達納。

Thank you. Jay Sole, UBS.

謝謝。傑伊·索爾，瑞銀集團。

Great. Thank you so much. Michelle, you mentioned in the prepared remarks that you saw a lot of opportunity to improve the four-wall economics of the Company stores. Maybe can you just elaborate on that a little bit? Where do you see the opportunities?

偉大的。太感謝了。米歇爾，您在準備好的演講中提到，您看到了許多改善公司商店四牆經濟效益的機會。也許您可以詳細說明一下嗎？您在哪裡看到機會？

And if you can put that in context, if US maybe like the top three or four margin drivers that you see that get the margins that mid-teens level over the next few years, what would those be. Thank you.

如果您可以將其放在上下文中，如果美國可能喜歡您看到的前三或四個利潤驅動因素，這些驅動因素在未來幾年內獲得十幾歲左右的利潤水平，那麼它們會是多少。謝謝。

You bet. You bet. No, it's a huge focus for us as we think about the future of our business on the growth really coming from DTC. It's critical for us. We get the structural economics of the digital channel to work harder for us.

你打賭。你打賭。不，這對我們來說是一個巨大的關注點，因為我們考慮我們業務的未來是否真正來自 DTC。這對我們來說至關重要。我們讓數位管道的結構經濟學為我們更加努力。

And we have a lot of efforts deferred both in our stores and on e-commerce, specific to our stores, I'll talk about first, the top line drivers and then some of the other opportunities we have on profitability.

我們在商店和電子商務方面都推遲了很多努力，具體到我們的商店，我將首先討論營收驅動因素，然後討論我們在盈利方面的其他一些機會。

But the first, the first and biggest priority for us is to drive the top line. You get the top line benefit, of course, would be it helps you leverage all your fixed costs. As you know, on your fixed real estate ex labor and the like.

但對我們來說，首要的也是最重要的任務是提高營收。當然，您獲得的最高收益是它可以幫助您利用所有固定成本。如您所知，關於您的固定房地產、勞動等。

And as it relates to the top line drivers, I would say a couple of things on some of these are just the basics like making sure that you're always in-stock on the key items and the teams have enhanced better tools today than they did even a year ago on systems and accountability to make sure that on X number of top SKUs know things like your 5/11 top washes, why you're low boost our introduction for women or whatever those might be that we're not out of stock on the key sizes.

由於它與頂級驅動程式相關，我想說其中一些只是基礎知識，例如確保您始終有關鍵物品的庫存，並且團隊今天已經增強了比他們更好的工具甚至一年前就在系統和問責制方面做了一些工作，以確保X 數量的頂級SKU 知道諸如您的5/11 頂級洗滌之類的事情，為什麼您的水平低，推動我們對女性的介紹，或者任何我們可能不會退出的內容主要尺寸的庫存。

And doing that on has, as we shared the results, that's had a direct effect and some of the results we're seeing even this past quarter.

正如我們分享的結果一樣，這樣做已經產生了直接的影響，我們甚至在上個季度就看到了一些結果。

Secondly is about innovation and newness. And, you know, in a store who's thinking about the store, the consumer wants a more comprehensive head-to-toe look, and we're getting a lot more disciplined in how we're introducing newness, literally on a monthly basis, making sure it all through the lens of the Levi's brand and the close-in opportunities we see and I spoke to it in the remarks is the whole head to toe denim dressing.

其次是關於創新和新穎。而且，你知道，在一家考慮商店的商店中，消費者想要從頭到腳更全面的外觀，而我們在推出新品方面變得更加嚴格，實際上是每月一次，確保這一切都通過Levi's 品牌的鏡頭和我們看到的近距離機會，我在評論中談到的是整個從頭到腳的牛仔裝。

We are the authority and denim bottoms, and we're expanding that to be the authority in denim, everything and categories like skirts and dresses, they're comping at triple digit. I mean, which just says there's so much opportunity, right?

我們是牛仔褲和牛仔褲的權威，我們正在將其擴展為牛仔布、裙子和連身裙等所有產品和類別的權威，它們的競爭是三位數。我的意思是，這只是說有很多機會，對嗎？

Like we should have the iconic denim skirt for everyone who wants it and that we're not there yet. I mean that triple digits would say there's a lot more upside, same with top, what's the perfect black T-shirt white T-shirt to go through bottoms. These kind of things on not only can drive traffic, but they drive conversion.

就像我們應該為每個想要它的人提供標誌性的牛仔裙一樣，但我們還沒有做到這一點。我的意思是，三位數意味著還有更多的優勢，就像上衣一樣，完美的黑色 T 卹白色 T 卹穿過下裝。此類內容不僅可以增加流量，還可以提高轉換率。

They drive EPT. and A., you are we are actually seeing UPT and AUR increases based on the actions we're taking on the product side, in addition to product, that's really around our teams in the stores and done and having them encouraging the upsell and the complementary sell.

他們駕駛 EPT。 A.，我們實際上看到 UPT 和 AUR 有所增加，這是基於我們在產品方面採取的行動，除了產品之外，這實際上是圍繞我們商店團隊完成的，讓他們鼓勵追加銷售和補充銷售。

So they're doing that. We're seeing the upsell. Those are just a couple of examples as it relates to costs, the single biggest opportunity we have is becoming an expert in labor deployment and how we manage labor from the moment you open the door to the moment you close it and how you navigate days of the week, et cetera. And so a lot of focus and effort, we're starting to see the early.

所以他們正在這樣做。我們看到了加售。這些只是與成本相關的幾個例子，我們擁有的最大的機會是成為勞動力部署方面的專家，以及我們如何管理勞動力，從您打開門的那一刻到您關上門的那一刻，以及您如何度過幾天的時間。一周等等。經過如此多的關注和努力，我們開始看到早期的成果。

Got it. Thank you so much.

知道了。太感謝了。

Okay, thank you.

好的謝謝。

Thank you. Oliver Chen, TD Cowen.

謝謝。奧利佛·陳，TD·考恩。

Thank you very much, Michelle. Hi Harmit. And women's tops and dresses as a clearly a big, nice opportunity. What's ahead for timing of that how it can and will drive upside to the model and moving the needle even more.

非常感謝你，米歇爾。嗨哈米特。女式上衣和洋裝顯然是一個巨大的好機會。未來的時機是什麼，它將如何推動模型上行，並進一步推動發展。

And as we think about your DTC first opportunity and strategy ahead, what do you think about speed and inventory management as well as the reality of markdown management and the cost method of accounting and making sure you're thinking about gross margin return on inventories as you become more agile and also balance novelty versus core and also look to increase inventory flows and frequency to being agile with the customer. Thank you.

當我們考慮您的 DTC 第一個機會和未來策略時，您對速度和庫存管理以及降價管理和會計成本方法的現實有何看法，並確保您將庫存的毛利率回報視為您變得更加敏捷，並平衡新穎性與核心，並尋求增加庫存流量和頻率，以便與客戶保持敏捷。謝謝。

Okay. Thanks, Oliver. I'll take first and then Harmit to take the second piece. We're seeing traction already, Oliver. I mean to the comments we made earlier DTC to be up 8% in the quarter, 25% on a two year basis.

好的。謝謝，奧利佛。我先拿走，然後哈米特拿走第二塊。我們已經看到了吸引力，奧利佛。我的意思是我們早些時候發表的評論稱，DTC 在本季度增長 8%，比兩年增長 25%。

The momentum is actually accelerating quarter on quarter, which is fantastic. And as it relates to women's, I called out DTC up 14% overall, up 19% in the U.S., and that's both tops and bottoms. So bottoms up, total Company DTC. bottoms up 13%, women's tops up 13% total company.

事實上，這一勢頭正在逐季加速，這真是太棒了。就女性而言，我認為 DTC 整體上漲了 14%，美國上漲了 19%，這既是頂部也是底部。所以由下而上，公司 DTC 總計。下裝上漲 13%，女裝上裝上漲 13%。

So we're seeing traction in both, and that's only going to grow from here. So and as it relates to bottoms, strength, strengthen things like the Fiber One continues. But the boot had the flares nine is the Bagdad all doing really well as fashion fit.

因此，我們看到了兩者的吸引力，而且這種吸引力只會從現在開始增長。因此，與底部、強度、強化等相關的纖維一號仍在繼續。但巴格達的九號靴子在時尚合身方面做得非常好。

And then on the top, what's really resonating with her are things like non graphic tees, woven shirts, outerwear and others. Speaking to a minute ago, the tall head to toe denim on skirts and dresses is off the charts and we are chasing into what's working today and the assortment only gets more robust.

在上衣方面，真正能引起她共鳴的是無圖案 T 卹、梭織襯衫、外套等。就在一分鐘前，裙子和連身裙上的從頭到腳的高牛仔布已經超出了預期，我們正在追尋今天的流行趨勢，而且品種只會變得更加豐富。

I'll quickly just answer your question on speed and go-to market for us is one of our top priorities as we make this pivot to DGC. and we are looking to literally shave months off of our process from concept to consumer site. Stay tuned on that. And we're already doing that in certain categories as we're chasing into them.

我很快就會回答您關於速度的問題，當我們轉向 DGC 時，進入市場是我們的首要任務之一。我們希望將從概念到消費者網站的流程縮短數月。請繼續關注。我們已經在某些類別中這樣做了，因為我們正在追逐它們。

Hey, to your question about markdowns and inventory turns, all of I'd say that's an opportunity for us. We can turn inventory faster in our stores and our markdown cadence, given all the new products that we are introducing, I think we can get a lot more scientific, and that's where we feel and the productivity opportunity in DTC is pretty high and large, and that's what we're working on as part of Project Fuel.

嘿，對於你關於降價和庫存週轉的問題，我想說這對我們來說是一個機會。考慮到我們推出的所有新產品，我們可以更快地週轉商店庫存和降價節奏，我認為我們可以變得更加科學，這就是我們的感覺，DTC 的生產力機會相當高且大，這就是我們作為Project Fuel 的一部分所做的工作。

A quick follow-up for me. On your guidance assumptions around margins. What was merchandise margin or what was the merchandise margin assumptions if there's ones we should be attuned to for the year? Thanks, everybody. Best regards.

對我來說是一個快速跟進。關於您對利潤率的指導假設。如果我們今年應該調整的話，商品利潤率是多少，或者商品利潤率假設是多少？謝謝大家。此致。

Yes, the we haven't gone into those specifics, Oliver, but I'd say if you're asking specifically relative to markdowns and discounts, the margins are really driven in our view by the structural improvements in the business, which is really a women's business and our growth in our DTC channel. I think those are the factors and driving the margin, then that's why it's more sustainable longer.

是的，我們還沒有討論這些細節，奧利弗，但我想說，如果你具體詢問有關降價和折扣的問題，我們認為利潤率實際上是由業務結構性改進驅動的，這確實是女性業務以及我們DTC 通路的成長。我認為這些是推動利潤率的因素，這就是為什麼它的可持續性更長久。

Thank you very much.

非常感謝。

Thanks.

謝謝。

Thanks.

謝謝。

Thank you. Chris Nardone, BofA.

謝謝。克里斯·納爾多內，美國銀行。

Thank you, guys. Good afternoon. Can you help us unpack the strength you're seeing in the North America retail business. I'd be curious if you're able to help us quantify the trends you're seeing in the outlet business?

感謝你們。午安.您能幫助我們了解您在北美零售業務中看到的實力嗎？我很好奇您是否能夠幫助我們量化您在奧特萊斯業務中看到的趨勢？

First, digital and then versus full-price stores? And then as a related follow-up, just curious if you can help us quantify how we should think about the impact to these 100 net new doors to your total sales growth for the full year? Thank you very much.

首先是數位商店，然後是全價商店？然後作為相關的後續行動，只是好奇您是否可以幫助我們量化我們應該如何考慮這 100 扇淨新門對全年總銷售成長的影響？非常感謝。

Yes, I'd say to your first question, the growth in DTC in the US is broadly across all three channels in our main line is really strong, okay? Outlet is probably as strong but less stronger. And our e-commerce business is actually doing fairly well. And so I would I would just say if you want to rank it, mainline, e-commerce and outlet, but all three strong from that perspective.

是的，我想說的是，對於你的第一個問題，美國 DTC 的成長在我們主線的所有三個管道中都非常強勁，好嗎？出口可能同樣強大，但不太強大。而我們的電商業務其實做得還不錯。所以我想說，如果你想對它進行排名，主線、電子商務和出口，但從這個角度來看，這三個都很強。

And broadly, what we're seeing is largely driven by traffic and as well as higher UPT and AUR conversion. It's an opportunity for us, and that's why we feel that this can only get better over time. And we are seeing the basket size improved because of newness that Michelle talked about and better in-stock, which is really helping the case from that perspective.

從廣義上講，我們所看到的主要是由流量以及更高的 UPT 和 AUR 轉換所推動的。這對我們來說是一個機會，這就是為什麼我們認為隨著時間的推移，情況只會變得更好。我們看到購物籃的大小有所改善，因為米歇爾談到的新鮮感和更好的庫存，從這個角度來看，這確實對案件有幫助。

I think you had a second question, Jay -- sorry, sorry, Chris, what was the second question, Chris?

我想你還有第二個問題，傑伊——對不起，對不起，克里斯，第二個問題是什麼，克里斯？

Yes, sure. I just wanted to see if we can talk about the impact you expect to see from these 100 net new doors, is it impactful to the 1% to 3% total growth you're expecting? And then if you could kind of clarify where these new doors will be opening?

是的，當然。我只是想看看我們是否可以談談您期望從這 100 扇淨新門中看到的影響，它對您期望的 1% 到 3% 的總增長有影響嗎？那麼您能否澄清一下這些新大門將在哪裡打開？

Well, just so you know, the 1% to 3% is impacted by the 200 basis points of a headwind because of the exit of Denizen and the home and the other and the other things that we spoke about. I mean the but the gross number is more 3% to 5%. The 100 net new doors, 70% of them are skewed to the second half. So you see partial impact this year were probably more the following year.

好吧，如你所知，由於 Denizen 和房屋以及我們談到的其他事情的退出，1% 到 3% 受到 200 個基點逆風的影響。我的意思是，但總數超過 3% 到 5%。淨新增的 100 扇門，其中 70% 都偏向下半年。所以你會看到今年的部分影響可能會在第二年更大。

And as you think about what's driving the DTC business, the number that we have kind of talked about, which is high single digit, low double digit. A large piece of that is gone growth in existing stores, followed equally between e-commerce and new stores. So I think, you know, comp stores being the main driver and then equally split between the other two. (multiple speakers)

當你思考推動 DTC 業務的因素時，我們談到的數字是高個位數，低兩位數。其中很大一部分用於現有商店的成長，其次是電子商務和新商店的成長。所以我認為，你知道，比較商店是主要驅動力，然後在其他兩個之間平均分配。 （多個發言者）

And know we do have Chris, so we have a very disciplined process where every year, we review how the fleet is performing and you determine the return on invested capital and return on invested capital is in the high teens. And so it encourages us to actually invest more capital and grow the store base longer term.

我們知道我們確實有克里斯，所以我們有一個非常嚴格的流程，每年我們都會審查機隊的表現，並確定投資資本回報率和投資資本回報率是否在十幾歲左右。因此，它鼓勵我們實際投入更多資本並長期擴大商店基礎。

Thank you. Tracy Kogan, Citi.

謝謝。崔西‧科根，花旗銀行。

Hi this is Tracy Kogan filling in for Paul. I think you guys said Europe DTC was up double digits in February and that has continued into March. And I was just wondering what March versus January and February looked like in the other regions.

大家好，我是崔西·科根 (Tracy Kogan) 代替保羅。我想你們說過歐洲 DTC 在 2 月上漲了兩位數，而這種情況一直持續到 3 月。我只是想知道其他地區的三月與一月和二月的情況如何。

And then just a follow up on gross margin. I think from Harvey, you laid out the drivers, the 240 basis point increase, but what were the drivers and that drove it above your expectation of up to 150 basis points? What came in better? Thanks.

然後是毛利率的跟進。我認為，從哈維的角度來看，您列出了 240 個基點增長的驅動因素，但驅動因素是什麼，導致其超出您預期的 150 個基點？什麼進來了更好？謝謝。

Yes, I think as I've mentioned the Tracy, your second question, I kind of broke up the 240, 150 in product cost, lower product costs and the channel mix of which half of the channel mix was about 100 basis points. But half of that was the ERP driven shift.

是的，我想正如我提到的特雷西，你的第二個問題，我在產品成本、較低的產品成本和渠道組合中分解了240、150 個基點，其中一半的渠道組合約為100 個基點。但其中一半是 ERP 驅動的轉變。

And then you had other factors like lower airfreight, et cetera, offset by FX headwinds and offset by the annualization of the US price reduction. And so that's really what drove the Q1, what was better than what we anticipated, was it just the strength in the DTC business that was strong that kind of helped out as of quarter, the U.S. is a big piece of that, but the US was up 10% on DTC. So that was the factor that, you know, drove the upside.

然後還有其他因素，例如航空貨運量下降等，這些因素被外匯不利因素和美國降價的年度化所抵消。這確實是第一季的推動因素，比我們預期的要好，是 DTC 業務的強勁實力在本季度起到了一定的幫助作用，美國是其中的重要組成部分，但美國DTC 上漲 ​​10%。所以這就是推動股市上漲的因素。

To your second question, which was to do. But yes, we don't go into the specifics of Tracy, but you're a Europe started soft and has accelerated, as Michelle said, once the new products were introduced and that I think drove some consumer demand and actually helped them unlock some of the open to buy from our wholesale customers. And we are seeing that generally both in the US and in Europe. And so that's a positive sign.

關於你的第二個問題，就是要做的事情。但是，是的，我們不會詳細討論特雷西的具體情況，但正如米歇爾所說，歐洲起步緩慢，並且加速發展，一旦新產品推出，我認為這推動了一些消費者需求，實際上幫助他們解鎖了一些可以從我們的批發客戶處公開購買。我們在美國和歐洲都普遍看到了這一點。這是一個正面的信號。

So again, it has improved, at least generally speaking in the US and Asia as well, generally similar to Europe. Is that fair?

因此，情況又有所改善，至少總體而言在美國和亞洲也是如此，總體上與歐洲相似。這樣公平嗎？

Yes, I would say you know, US and Europe in terms of the exit strong, stronger Asia has been strong all along. So I think Asia generally it is performing well. Other than China was a little soft in the Middle East impact we are seeing because Asia it the handles the Middle East.

是的，我想說你知道，美國和歐洲在退出方面表現強勁，而亞洲則一直表現強勁。所以我認為亞洲整體表現良好。除了中國以外，我們看到的中東影響有點軟，因為亞洲負責中東。

Thank you, guys. Good luck.

感謝你們。祝你好運。

Thanks Tracy.

謝謝特蕾西。

Thank you.

謝謝。

Thank you. Alex Straton, Morgan Stanley.

謝謝。亞歷克斯‧斯特拉頓，摩根士丹利。

Great. Thanks so much for taking the question. I just have a couple for you. First, maybe for Michelle and I piggyback off. The last one is just I mean, taking a step back, how would you describe the state of the consumer, I think now versus three months ago? Just trying to get a sense for if it's the same, better or worse.

偉大的。非常感謝您提出問題。我只有幾個給你。首先，也許是為了米歇爾和我。最後一個問題只是我的意思，退一步來說，我認為現在與三個月前相比，您如何描述消費者的狀態？只是想了解是否相同、更好或更糟。

And then a second one, maybe for me, just on North America margins, they definitely expanded nicely year over year. They're above pre-pandemic levels, but they are below where we were during COVID, I think about 20%. So what's holding that back? And is that 20% level achievable in the future for North America?

然後第二個，也許對我來說，就在北美邊緣，他們肯定逐年擴張得很好。它們高於大流行前的水平，但低於新冠疫情期間的水平，我認為大約是 20%。那麼是什麼阻礙了這一點呢？北美未來可以達到 20% 的水平嗎？

Thanks a lot.

多謝。

I'll take the first one really quickly. And in a nutshell, I'd say we're feeling better about the consumer than we did three to six months ago. We're seeing lots of evidence of that, both in terms of our overall category, the denim space and stabilization.

我很快就會拿第一個。簡而言之，我想說，我們對消費者的感覺比三到六個月前更好了。我們看到了很多證據，無論是在我們的整體類別、牛仔布空間還是穩定性方面。

We're seeing there in our biggest market, in particular, the expectation globally in the denim category to be up in the mid-single digits. And how we are seeing our own consumer response, both in our DTC. performance has been talked about quite a bit with our DTC business, up 8% in USGDC., up 10% on the gains with the middle income consumer and just market share gains across the board.

我們看到，在我們最大的市場，尤其是全球牛仔布類別的預期將達到中個位數。以及我們如何在 DTC 中看到我們自己的消費者反應。我們的 DTC 業務的業績受到了許多關注，在 USGDC 中成長了 8%，在中等收入消費者的成長中成長了 10%，市場佔有率也全面成長。

So we're optimistic more optimistic than I'd say we were three to six months ago.

因此，我們比我三到六個月前所說的更樂觀。

And on the profitability in the US, yes, you're right. It's a lot more profitable then definitely a year ago. And that's obviously driven by gross margin and better management of labor, et cetera. And that we've talked about is not all the way to 20%, largely because when it was 20%, we were growing at a faster clip and including in wholesale. And that's something that is an opportunity for us. But as we unlock growth, which we are confident of doing as the year progresses, that should flowing through the bottom line.

關於美國的獲利能力，是的，你是對的。與一年前相比，它的利潤肯定要高得多。這顯然是由毛利率和更好的勞動力管理等因素所推動的。我們談論的並不是一直到 20%，主要是因為當它達到 20% 時，我們的成長速度更快，包括批發業務。這對我們來說是一個機會。但隨著我們釋放成長（我們有信心隨著時間的推移實現成長），這應該會滲透到利潤中。

Thanks a lot. Good luck.

多謝。祝你好運。

Thanks, Alex.

謝謝，亞歷克斯。

Thank you.

謝謝。

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

謝謝。現在，我想將發言權轉回公司進行總結發言。

Thanks, everyone, and we look forward to speaking with you next quarter. Have a great rest of your day.

謝謝大家，我們期待下個季度與您交談。祝您有個愉快的一天。

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。