Levi Strauss & Co (LEVI) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company second-quarter fiscal 2024 earnings conference call for the period ending May 26, 2024. (Operator Instructions) Now, 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. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company.

女士們、先生們，美好的一天，歡迎參加Levi Strauss & Company 截至2024 年5 月26 日的2024 財年第二季度收益電話會議。無法在全部或部分未經本公司書面許可。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。我現在想將電話轉給李維斯公司投資者關係副總裁 Aida Orphan。

Thanks, Latif. Thank you for joining us on the call today to discuss the results for our second-quarter fiscal 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 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.

謝謝，拉蒂夫。感謝您今天參加我們的電話會議，討論 2024 財年第二季度的業績。以及我們的財務和成長長 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。今天電話會議的網路廣播連結也可以在我們的網站上找到。

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. Please review our filings with the SEC, in particular, the Risk Factors section of our Form 10-K for the year ended November 26, 2023, for the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today, and we assume no obligation to update any of these statements.

我們想提醒您，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。請查看我們向 SEC 提交的文件，特別是截至 2023 年 11 月 26 日的年度 10-K 表格的風險因素部分，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 financial measures are not intended to be a substitute for our GAAP results. Reconciliations of our non-GAAP measures to the most comparable GAAP measure are included in today's press release. Reconciliation of non-GAAP forward-looking information to the corresponding GAAP measures, however, cannot be provided without unreasonable efforts due to the challenge and quantifying various items, including but not limited to the effects of foreign currency fluctuations, taxes, and any future restructuring-related severance and other charges.

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。這些非公認會計原則財務指標並非要取代我們的公認會計原則結果。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。然而，由於挑戰和量化各種項目（包括但不限於外幣波動、稅收和任何未來重組的影響），如果不付出不合理的努力，就無法提供非公認會計原則前瞻性資訊與相應公認會計原則措施的調節相關的遣散費和其他費用。

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. And now, I would like to turn the call over to Michelle.

最後，此電話會議正在我們的 IR 網站上進行網路直播，並且很快將在網站上提供此電話會議的重播。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。現在，我想把電話轉給米歇爾。

Thank you, and welcome, everyone, to today's call. We delivered another strong quarter with revenue up 9% in constant currency and 2% adjusted for the ERP shift and the exit of the Denizen business, reflecting sequential improvement across the business. The ongoing acceleration in the business gives us confidence in the second half of the year and beyond.

謝謝大家，歡迎大家參加今天的電話會議。我們又實現了強勁的季度業績，按固定匯率計算，收入增長了 9%，並根據 ERP 轉變和 Denizen 業務的退出進行了調整，收入增長了 2%，反映出整個業務的連續改善。業務的持續加速讓我們對下半年及以後充滿信心。

Here are a few highlights. We continue to see strong growth in our direct-to-consumer channel, up 11%, reflecting nine consecutive quarters of robust comp growth. The Levi's brand continues to gain momentum, up 2% on an adjusted basis. Our global Levi's women's business is accelerating and delivered 22% growth in DTC in Q2. Levi's now ranks number one in women's denim bottoms in the US.

以下是一些亮點。我們的直接面向消費者通路持續強勁成長，成長了 11%，反映出公司連續九個季度的強勁成長。 Levi's 品牌持續保持強勁勢頭，調整後成長了 2%。我們的全球 Levi's 女裝業務正在加速發展，第二季 DTC 成長了 22%。李維斯 (Levi's) 目前在美國女式牛仔褲領域排名第一。

Our largest market, the US, once again delivered positive growth for a third consecutive quarter on an adjusted basis. Global wholesale sequentially improved down 4% on an adjusted basis due to an improvement in sell-out trends. While we are driving this growth, we are also improving our profitability as evidenced by record gross margins of 60.5%, enabling us to deliver a higher than expected adjusted diluted EPS of $0.16.

我們最大的市場美國在調整後再次連續第三個季度實現正成長。由於售空趨勢改善，調整後全球批發量較上季下降 4%。在我們推動這一成長的同時，我們也在提高獲利能力，毛利率達到創紀錄的 60.5%，這使我們能夠實現高於預期的 0.16 美元的調整後攤薄每股收益。

As I've shared previously, we are currently undergoing a significant transformational pivot to become a best-in-class direct-to-consumer retailer. While this evolution will span multiple years, our efforts are already positively impacting our quarterly results. I will now talk you through the details of the quarter in the context of our strategic priorities, meeting with our brand, operating as a direct-to-consumer first business, and powering our portfolio.

正如我之前所分享的，我們目前正在進行重大轉型，以成為一流的直接面向消費者的零售商。雖然這種演變將持續多年，但我們的努力已經對我們的季度業績產生了積極影響。現在，我將在我們的策略重點、與我們的品牌會面、作為直接面向消費者的第一業務運營以及為我們的產品組合提供動力的背景下，向您詳細介紹本季度的細節。

Starting with, leading with the Levi's brand, a key indicator of brand health. We continue to make meaningful market share gains in the US, driving growth with women and our key yout target group of 18 to 30 year old, while maintaining our dominant leadership position in men's. Importantly, we have maintained our leadership position across consumers of all ages, and our unaided brand awareness remains well above our competition across most markets globally.

首先，以李維斯品牌為主導，這是品牌健康度的關鍵指標。我們繼續在美國取得顯著的市場份額成長，推動女性和 18 至 30 歲關鍵青年目標群體的成長，同時保持我們在男性市場的主導地位。重要的是，我們在所有年齡層的消費者中保持了領先地位，並且我們的獨立品牌知名度仍然遠高於全球大多數市場的競爭對手。

We continue to drive brand heat and impactful storytelling by showing up at the center of culture across music, art and design, fashion and sports. We were thrilled and honored to have Beyonce name a song after us on her newest album. And as an example of our agility, we responded to the speed of culture, not only demonstrating our understanding of engaging social communities in an authentic way, but also generating more than 3 billion impressions and a ton of buzz for the brand that remains today.

我們透過出現在音樂、藝術和設計、時尚和體育的文化中心，繼續推動品牌熱度和有影響力的故事講述。我們很高興也很榮幸碧昂絲在她的最新專輯中以我們的名字命名了一首歌。作為我們敏捷性的一個例子，我們對文化的速度做出了反應，不僅展示了我們對以真實方式參與社交社區的理解，而且還為至今仍然存在的品牌產生了超過30 億次印象和大量關注。

We activated in a big way at Coachella and Stagecoach music festivals and launched collaborations with ERL, Stussy, and Starter. As we look to the second half of the year, we have a number of impactful partnerships planned across the globe, including a Paris-themed collaboration with renowned label Pigalle. This is also in support of our key city strategy, amplifying our efforts in Paris through initiatives like the opening of our iconic Champs-Élysées store in the second quarter and our Fifth House of Strauss.

我們在 Coachella 和 Stagecoach 音樂節上大舉活躍，並與 ERL、Stussy 和 Starter 展開了合作。展望今年下半年，我們計劃在全球範圍內建立許多有影響力的合作夥伴關係，包括與知名品牌 Pigalle 的巴黎主題合作。這也是為了支持我們的關鍵城市策略，透過在第二季開設標誌性香榭麗舍大道商店和史特勞斯第五宮等舉措，擴大我們在巴黎的努力。

Moving to product, we saw strong performance in our core offerings, while also introducing newness and innovation in Denim and Beyond as we expand our total addressable market. We continue to lead the global trend around straight, loose, and wide-leg bottoms.

轉向產品，我們看到我們的核心產品表現強勁，同時隨著我們擴大整體目標市場，我們也在牛仔布及其他領域引入了新穎性和創新性。我們持續引領直筒、寬鬆和闊腿褲的全球趨勢。

Now comprising more than 50% of our overall bottom assortment, loose fits grew 21% across channels in Q2. We are continuing to lean into the trend this summer with the launch of a new baggy fit for women, the XL, which will be available globally and across channels, along with a new relaxed fit for men, the 555. The core of our business remains very healthy. Our original icon, the 501, continues to deliver impressive growth, up 16% in DTC in Q2.

目前，寬鬆版型占我們整體下裝品種的 50% 以上，第二季各通路的寬鬆版型成長了 21%。今年夏天，我們將繼續順應這一趨勢，推出新款寬鬆款女式 XL 款（將在全球多個渠道發售）以及新款寬鬆款男士款 555。我們最初的標誌性產品 501 繼續實現令人矚目的成長，第二季的 DTC 成長了 16%。

Our strategic focus around Denim Dressing continues to gain traction, is becoming a more meaningful part of our portfolio, and is expanding our total addressable market opportunity. Denim Dressing continues to perform very well, with Denim dresses, skirts, and jumpsuits again up triple digits in the quarter.

我們圍繞牛仔服飾的策略重點繼續獲得關注，正在成為我們產品組合中更有意義的一部分，並正在擴大我們的整體潛在市場機會。牛仔服飾繼續表現出色，牛仔連身裙、裙子和連身褲在本季度再次增長了三位數。

We're also seeing success in tops and non-denim categories, evidence that our tops reset and increased focus on Denim lifestyle are working. Tops were up 20% in our DTC channel for Q2, with even stronger growth in women's tops, driven by our elevated essential offerings in women tops and non-graphic tees. The growing popularity of Western wear is at an all-time high, and our fans continue to choose from our collection of timeless yet fresh Western-inspired pieces. This includes our iconic Western shirts, which are seeing particularly strong sales in women up 40%.

我們還看到了上衣和非牛仔布類別的成功，這證明我們的上衣重置和對牛仔生活方式的更多關注正在發揮作用。第二季度，我們的 DTC 通路中的上衣成長了 20%，在我們提高女式上衣和無圖案 T 恤等基本產品的推動下，女式上衣的成長更為強勁。西式服裝越來越受歡迎，達到歷史最高水平，我們的粉絲繼續從我們永恆而新鮮的西式風格單品系列中進行選擇。其中包括我們標誌性的西部襯衫，其女性銷售尤其強勁，成長了 40%。

Relative to non-denim bottoms, our recently introduced tech pant in the 511 Fit for Men is delivering strong results. We see this as a new and expanding innovation platform, driving incremental wear occasions for our consumers. Given our early success, we'll be introducing a range of new products over the coming year, with the next introduction being the XX Chino, available worldwide and across both our wholesale and DTC channels.

相對於非牛仔布下裝，我們最近推出的 511 Fit for Men 科技褲效果強勁。我們將其視為一個不斷擴展的全新創新平台，為我們的消費者帶來更多的穿著機會。鑑於我們早期的成功，我們將在來年推出一系列新產品，下一個推出的是 XX Chino，在全球範圍內透過我們的批發和 DTC 管道銷售。

Looking to the second half of 2024, we will continue to deliver newness and drive innovation. For women, we have a strong lineup that supports our Denim dressing and Denim lifestyle strategy, including skirts, dresses, and jackets. We are also expanding into key categories like outerwear and sweaters to drive the head-to-toe offering. And following the success of our Performance Cool product, which we broadly rolled out globally earlier this year, this fall we are set to expand the innovative platform with the launch of Performance Warm, made with a soft interior that is designed for warmth in cooler weather.

展望2024年下半年，我們將持續推陳出新、推動創新。對於女性，我們擁有強大的產品陣容來支持我們的牛仔服飾和牛仔生活方式策略，包括裙子、連身裙和夾克。我們還擴展到外套和毛衣等關鍵類別，以推動從頭到腳的產品供應。繼今年稍早我們在全球廣泛推出的Performance Cool 產品取得成功之後，今年秋天，我們將推出Performance Warm 產品來擴展創新平台，該產品採用柔軟的內飾，專為在寒冷天氣中保暖而設計。

Looking ahead, we are making great progress on our efforts to streamline our go-to-market calendar by reducing SKUs by at least 15% and addressing complexity in our process, which will start benefiting us in H1 2025. The team is already using some of the learnings to create more agility in our process, such as chasing into top sellers this season. As we shorten our timelines and operate with a tighter assortment, we will see a number of benefits including responding faster to consumer trends and enhancing our overall efficiency as a DTC-driven organization.

展望未來，我們在簡化上市日曆方面取得了巨大進展，將 SKU 減少了至少 15%，並解決了流程的複雜性，這將從 2025 年上半年開始讓我們受益。的流程中創造更多敏捷性的學習，例如追逐本季的暢銷品。隨著我們縮短時間並以更嚴格的品種進行運營，我們將看到許多好處，包括更快地響應消費者趨勢以及提高我們作為 DTC 驅動的組織的整體效率。

Now, let's shift to direct to consumer, our next strategic priority and one of the biggest unlocks as we pivot to become a best-in-class omni-channel retailer. DTC continued to grow rapidly, up 11% on top of 14% growth in the prior year. We achieved these strong results by delivering high single digit positive comp growth.

現在，讓我們轉向直接面向消費者，這是我們的下一個策略重點，也是我們轉型成為一流的全通路零售商時最大的解鎖之一。 DTC 繼續快速成長，在去年 14% 的基礎上成長了 11%。我們透過實現高個位數的正複合成長來實現這些強勁的業績。

As I shared on our last call, we've been laser-focused on driving profitability and productivity in our stores. This quarter, we saw an improvement across all store KPIs, led by higher UPT and better conversion driven by our new product introductions, an improvement in our in-stock position, and a continued focus on best-in-class engagement with bands in our stores. US DTC was up 12% led by our mainline stores. AURs and mainline were up low single digits as consumers gravitate toward our full price premium products.

正如我在上次電話會議中分享的那樣，我們一直專注於提高商店的盈利能力和生產力。本季度，我們看到所有商店 KPI 均有所改善，這主要得益於新產品推出帶來的更高 UPT 和更好的轉換率、庫存狀況的改善以及持續關注與我們的樂團的一流互動。商店。在我們的主線商店帶動下，美國 DTC 上漲了 12%。由於消費者傾向我們的全價優質產品，AUR 和主線均出現低個位數成長。

Globally, we continue to execute our retail expansion plans and are on track to open 100 net new doors this year. In Q2, we opened our largest store in Thailand at the Central World Mall in Bangkok. This store is a pilot where we're implementing learnings from consumer research to improve the in-store consumer journey. By applying changes like displaying our Denim lifestyle categories more visibly throughout the store and elevating our premium collections, we drove revenue growth in both tops and bottoms. Results are encouraging and this is just one example of the great potential we have in improving store productivity.

在全球範圍內，我們繼續執行零售擴張計劃，今年預計將淨開 100 家新店。第二季度，我們在曼谷中央世界購物中心開設了泰國最大的商店。這家商店是一個試點，我們正在利用消費者研究中的知識來改善店內消費者的旅程。透過在整個商店中更明顯地展示我們的牛仔生活方式類別和提升我們的優質系列等變化，我們推動了上裝和下裝的收入成長。結果令人鼓舞，這只是我們在提高商店生產力方面擁有巨大潛力的一個例子。

E-commerce continues to be a big opportunity for us, up 19% this quarter, led by double-digit growth in the US, where we are seeing strong full-price sell-through and strength in women, now comprising more than 50% of the business in this channel. Ongoing initiatives to elevate our site and enhance the consumer experience as well as deliver a more premium and expanded assortment, continue to drive our momentum across all of our markets.

電子商務對我們來說仍然是一個巨大的機會，在美國兩位數增長的帶動下，本季度增長了 19%，我們看到強勁的全價銷售和女性力量，目前佔比超過 50%該渠道的業務。我們不斷採取措施提升我們的網站、增強消費者體驗以及提供更優質、更豐富的產品種類，繼續推動我們在所有市場的發展勢頭。

We also drove meaningful growth in our loyalty program, acquiring almost 2 million members in Q2, with 36 million members globally. As we make our pivot to be a DTC-first company, we also remain committed to wholesale. On an adjusted basis, our global wholesale business is down 4%, in-line with our expectations and a sequential improvement to Q1. We feel good about the trends we're seeing in our global wholesale business overall. The actions we've taken to stabilize this business are working.

我們也推動了忠誠度計畫的顯著成長，第二季獲得了近 200 萬會員，其中全球會員數量達到 3,600 萬。當我們致力於成為 DTC 優先的公司時，我們也仍然致力於批發。調整後，我們的全球批發業務下降 ​​4%，符合我們的預期，並且較第一季較上季有所改善。我們對全球批發業務的整體趨勢感到滿意。我們為穩定這項業務而採取的行動正在發揮作用。

Sell-out trends are improving, including in the US and Europe, and customers are excited about our expanded assortment. Importantly, this channel is significantly more profitable than last year, amplified by our healthier inventory levels and the improvement in our supply chain operations.

包括美國和歐洲在內的銷售趨勢正在改善，客戶對我們擴大的品種感到興奮。重要的是，由於我們更健康的庫存水準和供應鏈營運的改善，該管道的利潤顯著高於去年。

Turning now to our third strategy, powering the portfolio. Our international business is becoming a more meaningful contributor to our business and grew low-single digits in the quarter. This reflects 6% growth in Asia on top of 27% growth in the prior year, bolstered by strength in Japan, India, and Turkey. And our Europe business sequentially improved down low-single digits in the quarter, with certain key markets, including Italy and Spain, positive in the quarter as well as an improvement in performance across both wholesale and DTC.

現在轉向我們的第三個策略，為產品組合提供動力。我們的國際業務正在成為我們業務的更有意義的貢獻者，並在本季度實現低個位數成長。這反映了在日本、印度和土耳其的強勁推動下，亞洲在上一年增長 27% 的基礎上實現了 6% 的增長。我們的歐洲業務在本季連續實現低個位數改善，包括義大利和西班牙在內的某些主要市場在本季度表現良好，批發和 DTC 的業績也有所改善。

Dockers was down 1% on an adjusted basis, coming in below our expectations. Profit exceeded prior year, led by gross margin expansion and disciplined expense management. And inventories are significantly below prior year, down 16%.

Dockers 經調整後下跌 1%，低於我們的預期。在毛利率擴張和嚴格的費用管理的帶動下，利潤超過了去年。庫存顯著低於去年同期，下降了 16%。

Going forward, we'll be leaning into innovation with an expanded head-to-toe collection of the performance-based Dockers Go Series, which has exceeded expectations since its launch. Beyond Yoga was up 13% in acceleration to Q1 driven by strength in wholesale and e-commerce. In the quarter, we continue to see success in our much loved core space-dye business, as well as wins in new lifestyle categories like wider leg pants and dresses.

展望未來，我們將致力於創新，擴展基於性能的 Dockers Go 系列的從頭到腳系列，該系列自推出以來就超出了預期。在批發和電子商務實力的推動下，Beyond Yoga 的業績在第一季加速成長了 13%。在本季度，我們繼續看到我們備受喜愛的核心段染業務取得成功，以及闊腿褲和連身裙等新生活方式類別的勝利。

Our new CEO of Beyond Yoga, Nancy Green, has moved quickly to bring in seasoned industry leaders in product development, sourcing, retail, e-commerce, and marketing to build the capabilities to rapidly scale this business and achieve the long-term potential of the brand. To conclude, we are pleased with our performance through the first half of 2024, which underscores that we have the right strategies in place to drive long-term sustainable and profitable growth.

Beyond Yoga 的新任執行長 Nancy Green 迅速採取行動，引進了產品開發、採購、零售、電子商務和行銷方面經驗豐富的行業領導者，以建立快速擴展這項業務並實現長期潛力的能力。總而言之，我們對 2024 年上半年的業績感到滿意，這突顯我們擁有正確的策略來推動長期可持續和獲利的成長。

The Levi's brand has never been stronger. We continue to gain market share and our amplified focus with women and younger consumers is working. We have momentum across the world, including the US, where we have delivered three consecutive quarters of positive performance.

Levi's 品牌從未如此強大。我們不斷獲得市場份額，對女性和年輕消費者的加強關注正在發揮作用。我們在世界各地都有發展勢頭，包括美國，我們已連續三個季度取得了積極的業績。

We are seeing a strong response to our innovation and product launches centered around owning Denim lifestyle and have a robust pipeline for the remainder of the year. Our transformational pivot to operating as a DTC-first company, is reaching a tipping point with accelerating sales momentum and an improvement in margins. And we have an incredible talented, and passionate team around the world that is driving this transformation and delivering outstanding service with our consumers every day.

我們看到，以擁有牛仔生活方式為中心的創新和產品發布引起了強烈反響，並在今年剩餘時間內擁有了強大的產品線。我們轉型為以 DTC 為先的公司，隨著銷售動能的加速和利潤率的提高，我們正達到一個轉捩點。我們在世界各地擁有一支才華橫溢、充滿熱情的團隊，他們正在推動這項轉型，並每天為我們的消費者提供卓越的服務。

All of this gives me great confidence for the rest of the year and beyond. And with that, I'll now turn it over to Harmit to cover the financials.

這一切都讓我對今年剩餘時間及以後充滿信心。現在，我將把它交給哈米特來負責財務事宜。

Thanks, Michelle. We are pleased to have delivered earnings that significantly exceeded expectations despite stronger than expected headwinds from FX and a higher tax rate versus the prior year.

謝謝，米歇爾。儘管外匯帶來的阻力比預期強，而且稅率比前一年更高，但我們很高興實現了大幅超出預期的收益。

Gross profit dollars grew twice as fast as SG&A dollars, reflecting both revenue and gross margin growth but also our relative expense discipline driving higher operating margins. Going forward, this is a key metric we are focused on to enable us to achieve a longer-term goal of 15% high-quality margins.

毛利的成長速度是銷售、管理及行政費用的兩倍，這不僅反映了收入和毛利率的成長，也反映了我們的相對費用紀律推動了更高的營業利潤。展望未來，這是我們關注的關鍵指標，使我們能夠實現 15% 高品質利潤率的長期目標。

Our DTC business continues to not only be our fastest-growing business, but is also seeing real improvements in profitability, with operating margins increasing more than 300 basis points during the quarter. This includes a significant improvement in e-commerce profitability, with EBIT margins now double digits on a fully allocated basis.

我們的 DTC 業務不僅仍然是我們成長最快的業務，而且獲利能力也得到了真正的改善，本季營業利潤率成長了 300 個基點以上。這包括電子商務獲利能力的顯著提高，在完全分配的基礎上，息稅前利潤率現在達到兩位數。

The improvement in profitability in our DTC business surpassed our own expectations. And we believe we will continue to grow profitability in this channel as we pivot to a DTC-first company. And as our wholesale business becomes a smaller piece of our overall business, as Michelle mentioned, it is more profitable as inventory levels have normalized and gross margins across the business have increased, which we are focused on sustaining.

DTC業務獲利能力的提升超出了我們的預期。我們相信，隨著我們轉向 DTC 優先的公司，我們將繼續提高該管道的獲利能力。正如米歇爾所提到的，隨著我們的批發業務在我們整體業務中所佔的比例越來越小，隨著庫存水準的正常化和整個業務的毛利率的增加，它的利潤會更高，而我們的重點是維持這一點。

The benefits from Project Fuel are progressing as planned, and we believe our strategies related to this initiative are working. We remain on track to deliver $100 million in savings this year through a workforce reduction that has largely been implemented, savings from indirect procurement that are in progress and higher productivity from our DTC business, which is evident from our recent results.

Project Fuel 的效益正在按計劃取得進展，我們相信我們與該計劃相關的策略正在發揮作用。今年，我們仍有望透過已基本實施的裁員、正在進行的間接採購節省成本以及 DTC 業務更高的生產率來實現 1 億美元的節省，這從我們最近的業績中可以看出。

We also believe there will be additional savings in 2025, which we intend to quantify when we guide next year. In the quarter, we continue to make improvements in reducing our inventory position, and along with working capital management, we have generated positive free cash flow of $223 million in the second quarter and $437 million year to date.

我們也相信 2025 年將會有額外的節省，我們打算在明年製定指導時對其進行量化。本季度，我們繼續在減少庫存方面做出改進，加上營運資金管理，我們在第二季度產生了 2.23 億美元的正自由現金流，今年迄今產生了 4.37 億美元的正自由現金流。

Shareholder returns in the quarter were up 36% as we bought back shares and paid dividends. Reflecting our confidence in our cash flow position, we are increasing the quarterly dividend by 8% to $0.13 in quarter three, making this the first increase in dividends since July of 2022. And with that, I will turn to our results.

由於我們回購股票並支付股息，本季股東回報增加了 36%。為了反映我們對現金流狀況的信心，我們將第三季的季度股息增加 8% 至 0.13 美元，這是自 2022 年 7 月以來股息的首次增加。

Q2 net revenues were $1.4 billion, reflecting continued momentum in our global direct-to-consumer channel, which grew 11% and up 26% on a two-year stack. Along with our franchise partners, we have opened 30 net new doors in H1, excluding the Columbia take-back. Together our DTC and franchise business comprised 54% of total net revenues.

第二季淨收入為 14 億美元，反映出我們的全球直接面向消費者管道的持續成長勢頭，該管道在兩年內分別增長了 11% 和 26%。與我們的特許經營合作夥伴一起，我們在上半年淨開設了 30 家新門市，不包括哥倫比亞回收店。我們的 DTC 和特許經營業務合計佔總淨收入的 54%。

We remain on track to open a net of 70 stores in H2, ending the year with a system-wide store count of more than 2,600. Gross margin of 60.5% was a record high and improved 180 basis points year over year. Expansion was primarily driven by lower product costs, the structure shift to DTC, and the faster growth from our women's business all coming in higher than our expectations. These factors offset over 100 basis points of FX headwinds.

我們仍有望在下半年淨開設 70 家門市，到年底全系統門市數量將超過 2,600 家。毛利率達60.5%，創歷史新高，較去年調漲180個基點。擴張的主要原因是產品成本降低、轉變為 DTC 的結構以及女性業務的更快成長，所有這些都高於我們的預期。這些因素抵消了超過 100 個基點的外匯逆風。

Adjusted SG&A expenses in the quarter increased 4.3% to $785 million, and as a percentage of sales, adjusted SG&A was 54.4%, 190 basis points lower than last year. The S&A leverage was slightly better than our expectations, as we began to see the benefits of our cost control actions and our global productivity initiative, Project Fuel. The increase in SG&A dollars was primarily related to additional incentives accrual in quarter two, 2024, versus last year.

本季調整後的 SG&A 費用成長 4.3%，達到 7.85 億美元，調整後的 SG&A 佔銷售額的百分比為 54.4%，比去年低 190 個基點。 S&A 槓桿率略好於我們的預期，因為我們開始看到成本控制行動和全球生產力計劃 Project Fuel 的好處。 SG&A 美元的增加主要與 2024 年第二季與去年相比額外應計的激勵措施有關。

Gross profit dollars increased by 11% and grew at twice the pace of S&A dollars, leading to EBIT leverage with adjusted EBIT margin increasing 360 basis points to 6%. Adjusted EBIT dollars also significantly increased versus last year. On an H1 basis, gross profit dollars also grew at a faster pace than SG&A dollars, driving an increase in adjusted EBIT margin of 40 basis points.

毛利成長了 11%，成長速度是 S&A 美元成長速度的兩倍，導致息稅前利潤槓桿率和調整後息稅前利潤率增加了 360 個基點，達到 6%。調整後的息稅前利潤也較去年大幅增加。上半年，毛利成長速度也快於 SG&A 美元成長，推動調整後息稅前利潤率成長 40 個基點。

Adjusted diluted EPS was $0.16, up $0.12 from prior year, significantly exceeding our expectations. Reported inventory dollars were down 19%, excluding the impact of the modification of terms with the majority of our suppliers. This reduction was better than our plan, and overall, inventory is expected to end the year below prior levels as we work to further optimize inventories.

調整後攤薄每股收益為 0.16 美元，較前一年增加 0.12 美元，大幅超出我們的預期。報告的庫存金額下降了 19%，不包括與大多數供應商的條款修改的影響。這次減少比我們的計劃要好，總體而言，隨著我們努力進一步優化庫存，預計年底庫存將低於先前的水平。

As part of Project Fuel, we are focused on getting inventory turns back to three over time, as we drive assortment productivity. This will release significant working capital.

作為 Project Fuel 的一部分，我們致力於隨著時間的推移將庫存週轉率恢復到 3，同時提高分類效率。這將釋放大量營運資金。

Let me take a moment to talk to you about the significant changes we're making to our global distribution and logistics strategy. We have made the decision to move from a primarily owned and operated distribution and logistics network in the US and Europe to one that will be more balanced between our own and leading third-party logistic providers.

讓我花點時間與您談談我們對全球分銷和物流策略所做的重大改變。我們已決定從美國和歐洲主要擁有和運營的分銷和物流網絡轉向我們自己和領先的第三方物流提供商之間更加平衡的網絡。

As we continue our pivot to a DTC first company, our distribution networks need investment including upgrading existing capacity with omni-channel capabilities. A new strategy allows us to secure these investments in a capital efficient manner by leveraging third-party capital while freeing up our own resources to invest in growing the direct-to- consumer channel.

隨著我們繼續轉向以 DTC 為先的公司，我們的分銷網絡需要投資，包括透過全通路能力升級現有產能。新策略使我們能夠利用第三方資本以資本有效的方式獲得這些投資，同時釋放我們自己的資源來投資發展直接面向消費者的管道。

This will also enable us to reduce our fulfillment costs per unit compared to running the facilities ourselves, while immediately delivering a cash infusion of over $90 million this year, primarily as a reimbursement of the capital spent to build a new distribution center in Germany.

與我們自己營運設施相比，這也將使我們能夠降低單位履行成本，同時今年立即註入超過 9000 萬美元的現金，主要用於償還在德國建造新配送中心所花費的資本。

In the near-term, the changes require the parallel operation of new and old facilities for the rest of 2024, resulting in a transitory increase in distribution costs with a negative $0.02 impact to EPS in 2024. We expect, we will begin to see a favorable $0.02 impact to EPS in 2026, which will progressively increase in 2027 and beyond as distribution costs come down and inventory efficiencies improve as we better service our omnichannel needs.

短期內，這些變化要求新舊設施在 2024 年剩餘時間內並行運營，導致分銷成本暫時增加，對 2024 年每股收益產生 0.02 美元的負面影響。收益將受到0.02 美元的有利影響，隨著我們更好地滿足全通路需求，分銷成本下降，庫存效率提高，每股收益將在2027 年及以後逐步增加。

Now, let's review the key highlights by segment. In the Americas, DTC revenues were up 16% driven by double-digit growth in brick and mortar and e-commerce. While US wholesale was down mid-single digits, the US Market grew low-single digits entirely as a result of DTC growth on an adjusted basis.

現在，讓我們按細分市場回顧一下主要亮點。在美洲，由於實體店和電子商務兩位數的成長，DTC 收入成長了 16%。雖然美國批發量下降了中個位數，但美國市場的成長完全是由於 DTC 調整後的成長所致。

We're also seeing meaningful improvements in profitability across both channels. Robust gross margins driven by favorable brand and channel mix and reduced product costs resulted in strong operating margins of 18%. Notably, our gross profit dollars grew significantly faster than our SG&A expenses.

我們也看到兩個管道的獲利能力都得到了有意義的提升。有利的品牌和通路組合以及產品成本降低推動了強勁的毛利率，實現了 18% 的強勁營業利潤率。值得注意的是，我們的毛利成長速度明顯快於銷售管理費用成長速度。

In Europe, DTC revenues increased 7%, a sequential improvement to Q1, reflecting growth in mainline, outlet and e-commerce. Wholesale while down 11% has improved versus last quarter. Given the continued strength in DTC and the sequential improvement in wholesale, we continue to expect Europe to return to growth in H2, with a pre-book in Europe up mid-single digits for the second half.

在歐洲，DTC 收入成長了 7%，較第一季環比有所改善，反映了主線、奧特萊斯和電子商務的成長。批發雖然下降 11%，但較上季有所改善。鑑於 DTC 的持續強勁以及批發業務的連續改善，我們繼續預計歐洲下半年將恢復成長，下半年歐洲的預訂量將成長中個位數。

In the quarter, gross margins were up 420 basis points, offset by SGA investments resulting in a 15% operating margin which was flat to last year. Asia net revenues increased 6% compared to the prior year and are up 34% on a two-year stack. DTC revenues increased 6% driven by strength in e-commerce and company operator stores and wholesale net revenues were up 5%.

本季毛利率上升了 420 個基點，但被 SGA 投資所抵消，營業利潤率為 15%，與去年持平。亞洲淨收入比上年增長 6%，兩年間增長 34%。在電子商務和公司營運商店實力的推動下，DTC 收入成長了 6%，批發淨收入成長了 5%。

China, while lapping 95% growth in the prior year from the COVID-reopening, was down by 10%. We have recently enhanced our locally relevant product assortments and believe this should help improve the business.

中國去年因新冠疫情重新開放而實現了 95% 的成長，但今年卻下降了 10%。我們最近增強了與當地相關的產品種類，並相信這將有助於改善業務。

Excluding China, Asia was up 9% driven by growth across most markets. Overall for the quarter, Asia delivered an operating margin of 13%, which is 70 basis points higher than prior year, largely driven by gross margin expansion.

除中國外，在大多數市場成長的推動下，亞洲成長了 9%。整體而言，本季亞洲地區的營業利潤率為 13%，比去年同期高出 70 個基點，主要是由於毛利率擴張所致。

Now let's turn to our fiscal 2024 outlook and I will also share color on the next two quarters. Sales trends were consistent each month in the quarter, and we saw strength in several key drivers of our business, including the US market, acceleration of our global DTC business from last quarter, and robust growth in women.

現在讓我們轉向 2024 財年展望，我也會分享未來兩季的情況。本季每個月的銷售趨勢都是一致的，我們看到了我們業務的幾個關鍵驅動因素的強勁，包括美國市場、我們的全球 DTC 業務較上季度的加速以及女性的強勁成長。

However, despite the supportive trends, headwinds from foreign exchange have recently increased, especially with the Euro and Mexican peso, creating a wider divergence between reported and constant currency performance with a more meaningful impact in quarter three. As a result of the FX impact on our business for the full year, we now expect full year reported revenues to be at the midpoint of our range of 1% to 3% year-over-year growth, with revenue in constant currency trending closer to the upper end of our range.

然而，儘管出現了支撐性趨勢，但外匯方面的阻力最近有所增加，特別是歐元和墨西哥比索，導致報告貨幣表現和恆定貨幣表現之間存在更大差異，並在第三季度產生更有意義的影響。由於匯率對我們全年業務的影響，我們現在預計全年報告收入將處於 1% 至 3% 同比增長範圍的中點，而按固定匯率計算的收入則趨於接近到我們範圍的上限。

As respect to gross margin, we now expect the full year to be up 180 basis points to prior year. 30 basis points higher than our previously guided range, despite incremental FX headwinds of approximately 20 basis points for the year. This will be offset by an increase in SG&A due to the transition in our logistics and distribution network I spoke to earlier and a slight increase in advertising as we continue to fuel the momentum of our business.

至於毛利率，我們目前預計全年將比上年增加 180 個基點。儘管今年外匯逆風增加了約 20 個基點，但仍比我們先前的指導區間高出 30 個基點。這將被我之前談到的物流和分銷網絡轉型導致的銷售管理費用增加以及隨著我們繼續推動業務勢頭而略有增加的廣告所抵消。

Additionally, we reiterate our expectation for approximately $15 million a quarter in interest and a mid-to-high teens tax rate. As respect to earnings, we are making long-term investments in the business with our distribution and logistics transition as well as our brands with an increase in marketing.

此外，我們重申每季約 1500 萬美元的利息和中高青少年稅率的預期。就收益而言，我們正在透過分銷和物流轉型以及增加行銷的品牌對業務進行長期投資。

We expect these investments will impact full year EPS by $0.03. We also expect the impact of FX to be an incremental $0.02 headwind for the year. Given these factors, despite the beat in Q2, we are maintaining our adjusted diluted EPS estimate of $1.17 to $1.27 for the year at this time.

我們預計這些投資將影響全年 EPS 0.03 美元。我們也預計今年外匯的影響將增加 0.02 美元。考慮到這些因素，儘管第二季表現出色，但我們目前仍維持今年調整後稀釋每股收益 1.17 美元至 1.27 美元的預期。

Let me give you a bit more color on the back half of the year. In Q3, we expect continued sequential improvement in revenues. We reported revenues up low-single digits and low to mid-single digits on a constant currency basis. This is inclusive of a currency headwind of over 100 basis points.

讓我為您提供今年下半年的更多色彩。在第三季度，我們預計收入將持續改善。我們報告的收入在固定匯率基礎上成長了低個位數和中低個位數。其中包括超過 100 個基點的貨幣逆風。

Revenue growth in quarter four will inflect upward to mid-to-high single digits on both a reported and constant currency basis, including a 60-basis point headwind from FX. The improvement in Q4 versus Q3 is driven by the fact that the majority of store openings are skewed to the fourth quarter and there is the benefit of the 53rd week.

根據報告和固定匯率計算，第四季的營收成長將上升至中高個位數，其中包括來自外匯的 60 個基點的阻力。第四季度相對第三季度的改善是由於大多數新店開業都集中在第四季度，並且第 53 週的效益有所改善。

In the third quarter, gross margin will accelerate and be up approximately 200 basis points to prior year, as we will have fully anniversary the pricing actions we took last year with the benefits of product cost, higher DTC, and women's continuing. We also expect the mid-single digit increase to S&A due to continued expansion of DTC, higher A&P, and incentive funding compared to prior year as well as incremental costs related to our distribution transition, partially offset by savings from Project Fuel.

第三季度，毛利率將加速成長，比去年同期成長約 200 個基點，因為我們將迎來去年採取的定價行動整整一周年，受益於產品成本、更高的 DTC 和女性的持續優勢。我們也預計，由於 DTC 的持續擴張、較高的 A&P 和激勵資金，以及與我們的分銷轉型相關的增量成本，部分由專案燃料節省所抵消，因此 S&A 會出現中個位數成長。

We are confident that the acceleration in sales and profitability from Q1 to Q2 versus prior year will continue into the second half of the year. Our confidence is rooted in several factors. First, we are seeing a strong response to our new product assortment and more exciting launches set for the second half. We also focused on full price sales, particularly in our mainline stores in the US as we continue to introduce new products.

我們有信心，第一季到第二季的銷售額和獲利能力較上年同期加速成長的動能將持續到今年下半年。我們的信心源自於幾個因素。首先，我們看到人們對我們的新產品系列反應強烈，下半年將推出更多令人興奮的產品。隨著我們不斷推出新產品，我們也專注於全價銷售，特別是在美國的主線商店。

Second, we continue to see momentum in our DTC business. And as I mentioned, store openings are skewed to H2, when 70% of our net new doors are slated to open. Third, we are confident in the continued strength of our US business, and Europe overall is poised to return to growth in H2, supported by a positive wholesale pre-book and continued strength in DTC.

其次，我們繼續看到 DTC 業務的成長勢頭。正如我所提到的，商店開業時間偏向於下半年，屆時我們 70% 的淨新店預計將開業。第三，我們對美國業務的持續強勁充滿信心，而在批發預售積極和 DTC 持續強勁的支持下，歐洲整體預計將在下半年恢復成長。

Fourth, as we become a more DTC-focused retailer, we are confident in our plans for back to school and our holiday product and marketing campaign. The benefit of the 53rd week contributes approximately 1 point to H2 and 2 points to quarter four. And as we think about the profitability improvements in H2, our gross profit dollars are expected to grow 2 times the pace of SG&A dollar growth.

第四，隨著我們成為一家更注重 DTC 的零售商，我們對返校計畫以及假日產品和行銷活動充滿信心。第 53 週的收益為 H2 貢獻了大約 1 個點，為第四節貢獻了 2 個點。當我們考慮下半年獲利能力的改善時，我們的毛利預計將成長 SG&A 美元成長速度的 2 倍。

To close, we delivered on our commitments and saw solid results in H1. The strategic and financial benefits of our shift to DTC are getting us closer to the consumer. And along with a smaller, yet more profitable wholesale business, it's improving the structural economics of the company.

最後，我們兌現了我們的承諾，並在上半年取得了紮實的成果。轉向 DTC 的策略和財務效益使我們更加貼近消費者。連同規模較小但利潤更高的批發業務，它正在改善公司的結構經濟。

We continue to be confident in the acceleration in revenue, profitability, and free cash flow while taking some tough but transformative actions to become a best-in-class omni-channel DTC-first retailer. And with that, I will go ahead and open up the line for Q&A.

我們繼續對收入、獲利能力和自由現金流的加速充滿信心，同時採取一些艱難但變革性的行動，成為一流的全通路 DTC 優先零售商。接下來，我將繼續開放問答專線。

Laurent Vasilescu, BNP Paribas.

洛朗·瓦西萊斯庫，法國巴黎銀行。

Good afternoon. Thank you very much for taking my question. Michelle, Harmit, can you maybe talk about your confidence in the 2H acceleration for the top-line? I believe you talked about European order books up mid-single digits for 2H. How should we think about overall wholesale for 2H? And any further color, Michelle, on Europe on what you're seeing in terms of the trends so far?

午安.非常感謝您回答我的問題。 Michelle、Harmit，你們能談談你們對頂線 2H 加速的信心嗎？我相信您談到了 2H 歐洲訂單簿上升到中個位數的情況。 2H整體批發該如何思考？米歇爾，您對歐洲目前的趨勢有何看法？

Laurent, let me take the confidence second half in the acceleration, and then I'll pass on the wholesale, including US, to Michelle. But as you probably heard, we are confident about the acceleration, both top-line and bottom-line, in the second half.

勞倫特，讓我對下半年的加速充滿信心，然後我將把包括美國在內的批發業務轉交給米歇爾。但正如您可能聽說的那樣，我們對下半年營收和利潤的加速充滿信心。

So to think about it simply, the trends that we've seen, the sequential improvement we've seen in the first half continue into the second half and get better. Get better driven by the following. One, Michelle talked about the wonderful product lineup that we have and the exciting launches in the second half.

因此，簡單地考慮一下，我們所看到的趨勢，我們在上半年看到的連續改善會持續到下半年並變得更好。透過以下因素獲得更好的驅動。第一，米歇爾談到了我們擁有的精彩產品陣容以及下半年令人興奮的推出。

We've launched a lot of these products in the US. We're going to scale it and started with DTC, scaling it into wholesale and scaling it globally. And that's why we're really confident about the back-to-school and the holiday product launches we have.

我們在美國推出了許多此類產品。我們將對其進行擴展，並從 DTC 開始，將其擴展為批發並在全球範圍內擴展。這就是為什麼我們對返校和假期產品的發布充滿信心。

DTC is really strong. Productivity and profitability in DTC is really improving. And then we've got these extra stores that we're building in the second half. So that really would help our DTC business.

DTC確實很強。 DTC 的生產力和獲利能力確實在提高。然後我們將在下半年建造這些額外的商店。所以這確實會對我們的 DTC 業務有所幫助。

The US Business has three consecutive quarters of growth that we expect to continue into the second half. Europe is sequentially improving, but we feel really good about Europe returning to growth in the second half. The pre-book is up mid-single digit, and DTC will continue in the strength that we're seeing. It is the benefit of the 53rd week, both in H2 and quarter four.

美國業務已連續三個季度成長，我們預計這種成長將持續到下半年。歐洲正在逐步改善，但我們對歐洲下半年恢復成長感到非常滿意。預訂量上漲了中個位數，DTC 將繼續保持我們所看到的強勁勢頭。這是第53週的收益，無論是下半年還是第四季。

And then on profitability, is really driven by broadly three factors. The first is as revenue accelerates, we'll flow through that because really focus on gross profit dollars driving, being higher than SG&A dollars driving EBIT leverage.

然後就獲利能力而言，實際上主要由三個因素驅動。第一個是隨著收入的加速成長，我們將對此進行處理，因為真正關注的是毛利美元的驅動，高於SG＆A美元驅動的息稅前利潤槓桿。

Fuel savings just begun in Q2. I think we have fuel savings of approximately $20 million, the rest of that coming in the second half through the initiatives that we talked about, and then continued progression on the gross margin expansion that we talked about. So that's what really drives profitability. On wholesale over to you, Michelle.

燃油節省從第二季才開始。我認為我們節省了大約 2000 萬美元的燃油，其餘部分將在下半年透過我們談到的舉措實現，然後繼續推進我們談到的毛利率擴張。這才是真正推動獲利能力的因素。批發給你了，米歇爾。

Sure. Yeah, not a whole lot to add, but just to chime in on your question around the wholesale channel, so global wholesale. We're pleased and we're seeing sequential improvement in our wholesale business globally, of course in particular, in our two biggest wholesale businesses in the US and in Europe.

當然。是的，沒有太多要補充的，只是為了回答你關於批發管道的問題，即全球批發。我們很高興看到我們的全球批發業務連續改善，特別是我們在美國和歐洲的兩個最大的批發業務。

We were down 4%, which was up versus Q1, and we're expecting that progressive improvement to continue into the back half. It's really all the strategies that we've put in place over the last year that are gaining traction. It starts with product, Harmit just mentioned that. But we really are leading the trend with product and that's fueling our DTC business, but it's also fueling our wholesale business.

我們下降了 4%，與第一季相比有所上升，我們預計這種逐步改善將持續到下半年。事實上，我們去年實施的所有策略都在獲得關注。從產品開始，哈米特剛才提到了這一點。但我們的產品確實引領了潮流，這推動了我們的 DTC 業務，也推動了我們的批發業務。

So it starts with Denim Bottoms and Denim Authority around this whole trend on baggy, loose, wide leg. That's resonating. Our key customers are excited. They're ordering it.

因此，它從 Denim Bottoms 和 Denim Authority 圍繞著寬鬆、寬鬆、闊腿的整個趨勢開始。這很引起共鳴。我們的主要客戶很興奮。他們正在訂購。

And consumers are responding, and our sellout trends are improving across our wholesale channel. So that's a leading indicator, so we're really encouraged by that.

消費者正在做出反應，我們整個批發管道的銷售趨勢正在改善。這是一個領先指標，我們對此感到非常鼓舞。

Second, I would say, our strategy around denim lifestyle, and in particular with women, we're seeing outsized growth there. So tops, bottoms, Denim dresses, Denim skirts, working in DTC, also working in wholesale. And then I would add, as it relates to our supply chain, which was a challenge for us, as you know, last year in the US, that's all behind us. So when you take all those factors, we are in a completely different and better place than we were a year ago, as it relates to global wholesale, both Europe and the US.

其次，我想說的是，我們圍繞牛仔生活方式的策略，特別是針對女性的策略，我們看到了那裡的巨大成長。所以上衣、下裝、牛仔裙、牛仔裙，在 DTC 工作，也在批發。然後我想補充一點，因為這與我們的供應鏈有關，這對我們來說是一個挑戰，正如你所知，去年在美國，這一切都已經過去了。因此，當你考慮所有這些因素時，我們的處境比一年前完全不同，而且更好，因為這與歐洲和美國的全球批發有關。

And then as it relates to your question on Europe, just to take that question home, we saw big improvement from Q1 into Q2. So we were down to DTC up 7%, and we are fully expecting to see Europe grow in the back half of the year, with DTC continuing to accelerate, already positive -- continue positive, and seeing significant gains in wholesale as well, with the indicator being that the pre-books are up.

然後，由於這與您關於歐洲的問題有關，為了把這個問題帶回家，我們看到從第一季到第二季有了很大的進步。因此，我們預計 DTC 將成長 7%，我們完全預期歐洲將在今年下半年成長，DTC 繼續加速，已經是積極的——繼續積極，並且看到批發業也有顯著增長，指標是預售量已經增加。

So all in all, on both fronts, both wholesale and Europe, we're optimistic in the back half, and that's all baked into the acceleration we have planned in H2.

總而言之，在批發和歐洲這兩個方面，我們對下半年持樂觀態度，而這一切都融入了我們計劃在下半年的加速中。

Very helpful. Thank you very much for all the color.

很有幫助。非常感謝您提供的所有顏色。

Bob Drbul, Guggenheim.

鮑勃·德布爾，古根漢。

Hi, good afternoon. Just two questions, I think a little bit of a follow-up, but in terms of the US business, can you talk a little more around what you're seeing from the consumer, both your male and female consumers, and ultimately when you look at some of the trends within the denim businesses, Michelle? And do you see momentum continuing with some of the bigger drivers in product?

嗨，下午好。只有兩個問題，我認為有點後續，但就美國業務而言，您能否更多地談論您從消費者（男性和女性消費者）那裡看到的情況，以及最終當您米歇爾，看看牛仔布行業的一些趨勢？您認為產品中一些更大的驅動因素的勢頭會持續下去嗎？

Yes. Thanks, Bob, for the question. So a few questions within that. First of all, as it relates to our US business, We're very pleased. We're feeling really good third quarter of positive growth. We really think about and Harmit mentioned this in his remarks.

是的。謝謝鮑伯提出的問題。其中有幾個問題。首先，因為這涉及我們的美國業務，我們非常高興。我們對第三季的正面成長感覺非常好。我們確實思考過，哈米特在他的演講中也提到了這一點。

But we really think about the US, as a total marketplace. Our DTC business is growing tremendously It was up 12 percent in the quarter and that was driven off of -- to your question on trends, that was largely driven off of women's.

但我們確實將美國視為一個整體市場。我們的 DTC 業務成長迅猛，本季成長了 12%，這主要是由女性業務推動的。

Men still healthy in the mid-single digits but women's was up over 20% across both bottoms and tops. And in fact, as it relates to the US market share, which is really a powerful indicator. I mentioned earlier in the call, but I'll say it again, Number One market share leader in women's Denim bottoms. And we have now created great separation in that position.

男性的健康狀況仍然保持在個位數左右，但女性的健康狀況在底部和頂部都增加了 20% 以上。事實上，因為它涉及美國市場份額，這確實是一個強有力的指標。我之前在電話會議中提到過，但我會再說一遍，女式牛仔褲市佔率第一。我們現在在這個位置上創造了很大的分離。

So feeling great about that. Men's continues to hold the number one position, gaining market share as well with that younger consumer. So really encouraging leading indicators as it relates to the US market.

所以感覺很好。男裝繼續保持第一的位置，並在年輕消費者中贏得了市場份額。與美國市場相關的領先指標確實令人鼓舞。

So feel good about that. And as I just mentioned, DTC is our primary growth driver, but we are feeling very good about the trends we're seeing in the US wholesale business as well. And then to your question on state of the consumer and based on our business, we're feeling good.

所以對此感覺良好。正如我剛才提到的，DTC 是我們的主要成長動力，但我們對美國批發業務的趨勢也感到非常滿意。然後，關於您關於消費者狀況的問題，根據我們的業務，我們感覺良好。

Our consumer is proving to be resilient. They're coming into our stores. They're shopping online. So, our indications, I mean, we control what we control. And certainly, there is some level of uncertainty as we look into the back half of the year and beyond.

事實證明，我們的消費者是有彈性的。他們正在進入我們的商店。他們在網上購物。所以，我的意思是，我們的指示是我們控制我們所控制的。當然，當我們展望今年下半年及以後的情況時，存在一定程度的不確定性。

We're always certain about that uncertainty, but we can control what we can control. And our responsibility as the denim category leader is to drive that innovation, drive that freshness and newness. We're doing that in bottoms with these trends I was speaking to, the looser, baggier trends, but we're also now doing it on head-to-toe denim lifestyle, which is a newer strategy for us. And it's working.

我們總是對這種不確定性很確定，但我們可以控制我們能控制的事情。身為牛仔布類別的領導者，我們的責任是推動創新、推動新鮮感。我們正在根據我所說的這些趨勢，即寬鬆、寬鬆的趨勢，在下裝中做到這一點，但我們現在也在從頭到腳的牛仔生活方式上做到這一點，這對我們來說是一個新的策略。它正在發揮作用。

Denim products beyond bottoms is selling like crazy, Western shirts, and I know Western's trending as well as it relates to trends in the Denim market, up 40%, Denim skirts and dresses, those were up triple digits. And I would say on all of this, Bob, we're just getting started. So we will continue to fuel excitement in the category for kind of months and years to come.

下裝以外的牛仔產品正在瘋狂銷售，西式襯衫，我知道西式襯衫的趨勢，以及它與牛仔布市場趨勢的關係，上漲了 40%，牛仔裙和連身裙，上漲了三位數。我想說的是，鮑勃，我們才剛開始。因此，我們將在未來幾個月甚至幾年內繼續激發該類別的興奮感。

Thank you.

謝謝。

Thanks, Bob.

謝謝，鮑伯。

Matthew Boss, JPMorgan

馬修‧博斯，摩根大通

Great thanks. Michelle, on the total addressable market, which you touched on in prepared remarks, could you elaborate on assortment changes that you've made so far that support an expanded TAM for the Levi brand. Opportunities you're excited about to drive greater share of wallet.

萬分感謝。米歇爾，關於您在準備好的發言中提到的整個潛在市場，您能否詳細說明一下您迄今為止為支持 Levi 品牌擴展 TAM 所做的品種更改。您很高興有機會增加錢包份額。

And then Harmit, could you just maybe break down gross margin puts and takes that we should consider for the back half of the year relative to the distribution and logistics headwind?

然後，哈米特（Harmit），您能否分解我們應該考慮的下半年毛利率看跌期權和毛利率期權相對於分銷和物流逆風的情況？

Sure. Thanks, Matt. Yeah, great question and one that we are quite bullish on actually. So as I did mention, we are expanding our total addressable market. And I'd say in a couple ways. First, kind of build on the last question is really this whole head-to-toe Denim dressing and then Denim lifestyle.

當然。謝謝，馬特。是的，這是一個很好的問題，而且我們實際上非常看好這個問題。正如我所提到的，我們正在擴大我們的總目標市場。我會從幾個方面說。首先，在最後一個問題的基礎上，實際上是整個從頭到腳的牛仔裝，然後是牛仔生活方式。

So all things Denim. Believe it or not historically we've been a small player in even things like Denim skirts, Denim tops, Denim jackets, Denim dresses and like. And early indications are super positive. We have a big opportunity there. And I'm really excited about what's in the pipeline. So that'd be point number one.

所以所有的事情都是牛仔布。不管你信不信，從歷史上看，我們甚至在牛仔裙、牛仔上衣、牛仔夾克、牛仔連身裙等領域也只是一個小參與者。早期跡象非常積極。我們在那裡有很大的機會。我對即將發生的事情感到非常興奮。所以這是第一點。

And then point number two is non-denim. When you actually look at our total business, 44% of our direct-to-consumer business is actually now what we consider non-denim bottoms. So that does include kind of the skirts and dresses, I was mentioning, but it also includes non-denim in both men and women. And we've driven a lot of newness in those categories as well.

第二點是非牛仔布。當你實際觀察我們的總業務時，我們的直接面向消費者業務中有 44% 實際上是我們現在認為的非牛仔布下裝。所以這確實包括我提到的裙子和連身裙，但也包括男性和女性的非牛仔布。我們也在這些類別中推動了許多新事物。

So our XX Chino platform, which has done really well over the last couple of years, we're expanding that into performance. So you may recall we launched a new platform, the performance platform, performance tech, just recently, last couple months, we started with the 511 Fit for Men.

因此，我們的 XX Chino 平台在過去幾年中表現非常出色，我們正在將其擴展到效能方面。所以你可能還記得我們推出了一個新平台，性能平台，性能技術，就在最近，過去幾個月，我們從 511 Fit for Men 開始。

We're launching it into XX Chino in the coming year. That's soon to land actually in the US across channels. And we're working on a more premium offering that's going to go global, and we're actually looking at expanding the platform from there.

我們將在明年將其推出到 XX Chino。該產品很快就會透過管道實際登陸美國。我們正在開發一種更優質的產品，該產品將走向全球，我們實際上正在考慮從那裡擴展該平台。

So Levi's definitely has permission, but it will always stay true to, and I think this is really important to the true Levi's DNA, the aesthetic of the brand. But the consumer is saying both men and women, they want more Levi's in their closet.

因此，Levi's 肯定獲得了許可，但它將始終忠於品牌的美學，我認為這對於真正的 Levi's DNA 非常重要。但消費者表示，無論男性或女性，他們都希望衣櫃裡有更多 Levi's 牛仔褲。

So whether again, that's more Denim lifestyle head-to-toe or more of this non-denim, it's working. And we're seeing it in the numbers. So we're seeing it in terms of gaining share in women, significant share and with men holding our share. But we're also gaining share in non-Denim casual pants in men. So all good indicators. We're excited. And that gives us a much bigger playing field.

因此，無論是從頭到腳的牛仔生活方式還是非牛仔生活方式，它都有效。我們從數字中看到了這一點。因此，我們看到女性的份額正在增加，顯著的份額，而男性則佔據了我們的份額。但我們在男士非牛仔休閒褲的份額也在增加。所以所有指標都很好。我們很興奮。這給了我們一個更大的競爭環境。

And Matt, on the question of gross margin. So let's talk quarter two first, and I'll give you the second half of the year. And I'll talk about this new focus on gross profit dollars less SGA.

馬特，關於毛利率的問題。因此，讓我們先討論第二季度，然後我將向您介紹今年下半年的情況。我將討論這個新的焦點，即毛利減去 SGA。

But basically, in quarter two, the big buckets, the tailwinds were really product cost, really driven by commodities. That was approximately 250 basis points higher than a year ago and the mix on areas that we are driving growth in. So think DTC, think women, and think international. So that's about 50 basis points.

但基本上，在第二季度，最大的推動因素實際上是產品成本，真正由大宗商品驅動。這比一年前高出約 250 個基點，以及我們推動成長的領域的組合。所以這大約是 50 個基點。

It was offset by over 100 basis points, as I said, in the remarks on FX, and then about 20 basis points in airfreight, given some of the Red Sea issues that we're seeing. And the fact that we are actually chasing into product, and believe it or not, some of the product offers are selling so quickly that we're chasing into it. So we are air-fitting a little bit more. So that's really the quarter two.

正如我在外匯的評論中所說，考慮到我們看到的一些紅海問題，它被抵消了 100 多個基點，然後空運被抵消了約 20 個基點。事實上，我們實際上正在追逐產品，不管你相信與否，有些產品銷售得如此之快，以至於我們正在追逐它。所以我們對空氣進行了更多的調整。這確實是第二季。

As you think about the second half of the year -- and quarter three is a little different than quarter four, and I'll explain to you in a minute why. But overall, I think tailwinds will be product costs more in quarter three, but we started lapping this late in Q3.

當您想到下半年時，第三季與第四季略有不同，我將立即向您解釋原因。但總的來說，我認為第三季的順風車將是產品成本更高，但我們在第三季末開始這樣做。

So a little bit in Q3 last year and you saw the benefit in Q4. The mixed benefit continues. And then FX headwind is not as high as 100 in Q2, but probably 50-odd basis points in Q3, substantially less in Q4. If it -- as a headwind, probably the same, especially as chasing into stuff.

去年第三季的一點點，你在第四季看到了好處。混合效益仍在持續。然後，外匯逆風在第二季不會高達 100，但在第三季可能會達到 50 多個基點，而在第四季則大幅減少。如果是——作為逆風，可能是一樣的，尤其是在追逐東西時。

So generally feeling very good about gross margins. And that's where we raise the guidance for the year, which if we deliver, we confident off, we'll be another record on an annual basis from that perspective.

因此總體上對毛利率感覺非常好。這就是我們提出今年指導的地方，如果我們兌現了這項指導，我們有信心從這個角度來看，我們將在年度基礎上再創紀錄。

But overall, as we get to the operating margin goal of 15%, this is metric of gross profit dollars less SG&A and ensuring that drives the leverage is important. If you go back to 2021 when our operating margins were over 12%, gross profit was growing at a much faster clip than SG&A. And that's the discipline that we as a leadership team want to instill in ourselves.

但總體而言，當我們達到 15% 的營業利潤率目標時，這是毛利減去 SG&A 的指標，確保推動槓桿率很重要。如果你回到 2021 年，當時我們的營業利潤率超過 12%，那麼毛利的成長速度比 SG&A 快得多。這就是我們身為領導團隊想要灌輸給自己的紀律。

Great color, best of luck.

顏色很棒，祝你好運。

Thank you.

謝謝。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Hey. Good afternoon, everyone. What I wanted to ask is, I'm trying to understand the momentum in the business and certain parts of the categories you guys sell seems pretty apparent. And there's certain parts of the assortment that seem to be doing extraordinarily well. But when you look at the overall revenue of the business, it's still not -- it doesn't quite connect with the optimism that you guys have.

嘿。大家下午好。我想問的是，我試著去了解業務的發展勢頭，你們銷售的某些類別的某些部分似乎非常明顯。該系列中的某些部分似乎表現得非常好。但當你看看公司的整體收入時，你會發現它仍然與你們的樂觀情緒不太相關。

Now the direct-to-consumer business is very strong, but it's also, it was similar last year. So I guess where I'm going with that is, is that a function of there's more to come, the inventories are too tight, the wholesaler's partners haven't been willing to take product, it takes more time because I'm just trying to understand that there seems to be so much buzz that's growing, I would have thought there would be more revenue growth commensurate with that. So maybe for Michelle, can you connect those dots for me?

現在直接面向消費者的業務非常強勁，但去年也類似。所以我想我要去的地方是，還有更多的東西即將到來，庫存太緊張，批發商的合作夥伴不願意接受產品，這需要更多的時間，因為我只是在嘗試了解到似乎有如此多的嗡嗡聲在增長，我以為會有更多與之相稱的收入增長。那麼對米歇爾來說，你能幫我把這些點連結起來嗎？

Yeah, let me take a stab. And so sequentially quarter two, hopefully the ERP noise is behind us. But sequentially quarter two grew 2% constant currency, and similarly on Levi's. As you think about the quarter Ike, because your question is a good question. The thing is that quarter Levi generally was on our expectation.

是啊，讓我來刺一下。因此，到了第二季度，希望 ERP 的噪音已經過去了。但以固定匯率計算，第二季連續成長了 2%，李維斯 (Levi's) 的情況也類似。當你思考艾克季度時，因為你的問題是一個好問題。問題是，李維這個季度總體上符合我們的預期。

US was stronger, Europe was on plan, Asia slightly lower largely because of China. Ex-China, Asia was fairly strong. The thing that --I think the headwinds, I talked about a little on the script, but the headwinds were really FX, okay, and Dockers underperform. So as you think about -- because -- I think your question is more centered on Levi's, but that's really what happened in the quarter.

美國走強，歐洲按計畫進行，亞洲小幅走低，主要是因為中國。除中國外，亞洲相當強勁。我認為逆風，我在劇本上談過一些，但逆風確實是FX，好吧，而且Dockers表現不佳。因此，當你想到——因為——我認為你的問題更多地集中在李維斯身上，但這確實是本季度發生的事情。

Now, what gives us real confidence in the second half, because revenue does accelerate, especially in constant currency, is the new product offers. They're just -- in a global business, you get the best bank for the buck, when it's across channels and is across geographies. And our product is right now making the transition across geographies and across channels. So that's why you're seeing the sequential or our expectation that sequentially it will improve. This takes a little time from that perspective.

現在，真正讓我們對下半年充滿信心的是新產品的推出，因為收入確實加速了，尤其是以固定匯率計算。他們只是——在全球業務中，當跨通路、跨地域時，你會得到性價比最高的銀行。我們的產品目前正在跨地域、跨通路進行轉型。這就是為什麼你會看到連續的情況或我們期望它會連續改善的原因。從這個角度來看，這需要一點時間。

The DTC business continues to grow. Michelle talked about wholesale. Wholesale was down, granted in Q4, but it's less down than Q1 globally. And our expectation is that -- that improves as the year progresses.

DTC業務持續成長。米歇爾談到了批發。第四季批發量下降，但全球降幅低於第一季。我們的期望是——隨著時間的推移，情況會有所改善。

And is largely driven by two things, Inventory levels generally are in the trade are getting to a good spot. So that should open the open to buy. And as they see new product, there is -- customers are gearing to put that on the floor. So that's why I think it's a natural progression and sometimes it just takes a little time and that's what we're beginning to see.

很大程度上是由兩件事推動的：交易中的庫存水準總體上正在達到一個良好的位置。所以應該開倉買入。當他們看到新產品時，客戶正準備將其放在地板上。所以這就是為什麼我認為這是一個自然的進展，有時只需要一點時間，這就是我們開始看到的。

Yeah, the only thing I would add to that is when you take a step back, as we look to the back half of the year, we are planning for, we've guided for acceleration. So we're expecting the back half of the year to be in the mid-single digits, in terms of growth, which bakes in the continued double digit performance in DTC as well as some modest improvement in wholesale.

是的，我唯一要補充的是，當你退後一步時，當我們展望今年下半年時，我們正在計劃，我們已經指導了加速。因此，我們預計今年下半年的成長將達到中個位數，這得益於 DTC 持續兩位數的表現以及批發業務的小幅改善。

But our DTC business now is becoming such a big part of our business. As long as we get, call it stability in the wholesale channel and the kind of growth or stability we're seeing now, the model works. And so that's why we're extremely confident in the back half of the year.

但我們的 DTC 業務現在正在成為我們業務的重要組成部分。只要我們能夠實現批發通路的穩定性以及我們現在看到的成長或穩定，模型就可以發揮作用。這就是為什麼我們對今年下半年非常有信心。

And I think Harmit did a great job explaining this current quarter. The FX piece clearly was the biggest impact given that 60% of our business is global, but the Levi's brand and the Levi's business is extremely healthy as evidenced by the market share gains that we're making in many places around the world, including here in the US.

我認為哈米特在解釋本季方面做得很好。鑑於我們 60% 的業務是全球性的，FX 顯然是影響最大的，但 Levi's 品牌和 Levi's 業務非常健康，我們在世界各地（包括這裡）的市場份額增長就證明了這一點在美國。

Very helpful. Thank you.

很有幫助。謝謝。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Hi, good afternoon, everyone. As you think about top line and then managing it with the better than expected gross margins and your guide for the SG&A, unpacking the increased marketing spend that's happening in the second half of the year, how much higher is this marketing spend than your original plan? And given the positive reception to the trends and that you're the market share leader, how should we think about marketing expense going forward? What do you need in top-line sales to leverage some of these expenses in other words? Thank you.

嗨，大家下午好。當您考慮營收，然後以高於預期的毛利率和 SG&A 指南來管理它，解開下半年增加的行銷支出時，該行銷支出比您最初的計劃高出多少？鑑於對趨勢的積極接受，並且您是市場份額的領導者，我們應該如何考慮未來的行銷費用？換句話說，您在頂線銷售中需要什麼才能利用其中一些費用？謝謝。

Yeah, thanks Dana. I wish we could have floated the EPS beat, $0.05, which I think a lot of people were expecting. But as we think about this business, you have to think about this business longer term.

是的，謝謝達納。我希望我們能夠將每股收益設定為 0.05 美元，我認為這是許多人所期望的。但當我們考慮這項業務時，你必須更長遠地考慮這項業務。

So if you think of the $0.05, $0.02 of the $0.05 is really being spent as we make the pivot to more of a hybrid distribution logistic network. And we did get the cash infusion of over $75 million a quarter, but about $90 million in the year. And that's just running two DCs parallelly as they transition. And that's $0.01 in quarter three and maybe $0.01 in quarter four.

因此，如果您考慮 0.05 美元，那麼 0.05 美元中​​的 0.02 美元實際上是在我們轉向更多的混合分銷物流網絡時花費的。我們每季確實獲得了超過 7500 萬美元的現金注入，但全年約為 9000 萬美元。這只是在兩個 DC 轉換時並行運行它們。第三季為 0.01 美元，第四季可能為 0.01 美元。

The marketing question, Dana, is about a $0.01 higher in H2. And it's just to fuel. We have -- we're expanding the TAM as Matthew asked. We are introducing new products.

Dana 的行銷問題下半年大約上漲了 0.01 美元。這只是為了加油。正如 Matthew 所要求的，我們正在擴展 TAM。我們正在推出新產品。

Our consumers need to be more aware of it. So we have to drive awareness. And, we have wonderful marketing programs that Kenny, I think, talked about in quarter two. And so this just helps fuel the brand momentum.

我們的消費者需要更加意識到這一點。所以我們必須提高意識。而且，我們有精彩的行銷計劃，我想肯尼在第二季度談到了這些計劃。因此，這有助於推動品牌動能。

To your question about what's the right spend, we do a ROI analysis and so as long as we think it really drives revenue. Marketing spend will probably end the year around 7%. It's little over than what we thought. Last time we talked about it. But it'll probably grow over time but so will revenue. And so that's really the linkage we look at.

對於您關於什麼是正確支出的問題，我們會進行投資報酬率分析，只要我們認為它確實能帶來收入。年底行銷支出可能會成長 7% 左右。事情比我們想像的少一點。上次我們討論過這個問題。但隨著時間的推移，它可能會成長，收入也會成長。這就是我們真正關注的聯繫。

Thank you.

謝謝。

You're welcome.

不客氣。

Thanks, Dana.

謝謝，達納。

Chris Nardone, BOA.

克里斯·納爾多內，BOA。

Thanks, guys. Good afternoon. Just a couple of follow-ups on the US business. Can you elaborate on the progression of US DTC results through the quarter and comment on whether trends have sustained in June? And then on the US wholesale business, are you committed to growing the US wholesale business in the back half? And curious if you have any comments on how sellout is trending versus maybe last quarter.

多謝你們。午安.只是美國業務的一些後續行動。您能否詳細說明本季美國 DTC 業績的進展，並評論 6 月的趨勢是否持續？那麼在美國的批發業務方面，您是否致力於下半年發展美國的批發業務？很好奇您對上個季度的銷售趨勢有何評論。

Yeah. So to a question about the US DTC, it's actually - the quarter was fairly even. We saw the US DTC business start really strongly at the beginning of the year. That's continuing into the quarter, and we feel really good about the continuation into quarter three.

是的。因此，對於有關美國 DTC 的問題，實際上，該季度相當平穩。我們看到美國 DTC 業務在今年年初起步非常強勁。這種情況一直持續到本季度，我們對這種情況持續到第三季度感到非常滿意。

The US team is doing a phenomenal job, really making this pivot to DTC and driving productivity. The EBIT margins are off the charts as an example. We don't talk about it by segment, but we look at the, the America's operating margins, the last piece of that is driven by our DTC business.

美國團隊做得非常出色，真正實現了向 DTC 的轉變並提高了生產力。例如，息稅前利潤率就超乎想像。我們不會按細分市場來討論，但我們會關注美國的營業利潤率，其中最後一部分是由我們的 DTC 業務驅動的。

To your question about US wholesale, it gets better from the mid-single digit decline that we talked about as the year progresses. Very difficult to predict whether it turns positive. The thing that we can say, I think, Michelle, with confidence is we are seeing sell-throughs actually improve as we exit into the quarter. And so that just bodes-well.

對於你關於美國批發的問題，隨著時間的推移，我們談到的中個位數下降情況有所改善。很難預測它是否轉為陽性。米歇爾，我認為，我們可以充滿信心地說，隨著我們進入本季度，我們看到銷售量實際上有所改善。所以這只是一個好兆頭。

And inventory levels are relatively lean. So the combination of that, especially as a US consumer, who we think is resilient, I think you can do the math over time.

庫存水準相對較低。因此，綜合起來，尤其是作為我們認為具有彈性的美國消費者，我認為您可以隨著時間的推移進行計算。

Yeah Maybe the only thing to add on that one Harmit, well said is that just to make the point when we think about the state of the US wholesale business a year ago versus where we are today, it literally is a sea change of what we're seeing in US wholesale. The operations supply chain.

是的，也許哈米特說得好，唯一要補充的是，當我們思考一年前美國批發業務的狀況與今天的情況時，這確實是我們的巨大變化。營運供應鏈。

We're back to normal; we're shipping orders; and we had a little bit of catch up. Now it's the business as usual. Product, the center of everything. The product is resonating, I think especially with as we look to our Denim lifestyle strategy, women's tops, those are all outperforming.

我們恢復正常了；我們正在運送訂單；我們有一點趕上。現在一切如常。產品，一切的中心。我認為該產品引起了共鳴，尤其是當我們關注我們的牛仔生活方式策略時，女式上衣，這些都表現出色。

As we talked about, the sellout trends are improving in US wholesale. We're working closely with all of our key customers, so that the brand is showing up in a way that's a win-win for us and for them. So all the really -- all the core strategies that we put in place a year ago to turn this business around is working and we've now seen several quarters of improvement versus where we were a year ago.

正如我們所討論的，美國批發市場的銷售趨勢正在改善。我們正在與所有主要客戶密切合作，以便該品牌以對我們和他們來說雙贏的方式出現。因此，我們一年前為扭轉業務而製定的所有核心策略都在發揮作用，與一年前相比，我們現在已經看到了幾個季度的進步。

Yeah. And I've been reminded to say this, I will which is our full year guidance is not contingent on US wholesale growing in the second half. I just want to make that point, Chris. And you didn't ask this, but US's wholesale is a lot more profitable today than it was a year ago.

是的。我被提醒說這一點，我會的，這是我們的全年指導，並不取決於下半年美國批發的成長。我只是想強調這一點，克里斯。你沒有問這個，但今天美國的批發利潤比一年前高很多。

Very clear. Thank you.

非常清楚。謝謝。

Thank you.

謝謝。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Latif, we can --

拉蒂夫，我們可以──

Yeah, and it may be a logistic issue, Latif. We'll catch up with Oliver later.

是的，這可能是後勤問題，拉蒂夫。我們稍後會跟奧利佛聯繫。

Paul Lejuez, Citi.

保羅‧勒胡埃斯，花旗銀行。

Thanks guys. I'm curious if you can talk about the drivers of the DTC increases in each of your regions, just in terms of square footage increases versus comps but also units versus pricing. Then, as a follow-up to that, I'm curious if you changed your expectations at all for the second half for DTC in any of the regions based on what you saw in 2Q or the first half in general. Thanks.

多謝你們。我很好奇您能否談談每個地區 DTC 成長的驅動因素，包括面積相對於比較的成長以及單位相對於定價的成長。然後，作為後續行動，我很好奇您是否根據第二季或上半年的整體情況改變了對任何地區下半年 DTC 的預期。謝謝。

Yeah, Paul. I'll be brief. Comp sales were a big driver of the DTC piece. Our unit sales in terms of new doors -- net new doors were modest in the first half so that will pick up in the second half. And while we talk about stores and we talk about comps, our e-commerce business is on fire. The e-commerce team led by Jason, they're doing a phenomenal job. And it's really going back to the basics, driving loyalty, driving higher conversion, et cetera, fixing the fundamentals.

是的，保羅。我會簡短地說。比較品銷售是 DTC 作品的一大推手。我們的新門單位銷售量－上半年淨新門銷售量不大，因此下半年將會有所回升。當我們談論商店和比較時，我們的電子商務業務正在火熱進行中。 Jason 領導的電子商務團隊做得非常出色。它實際上是回到基礎，提高忠誠度，提高轉換率等等，修復基本面。

So I think that's where you -- we never talked about it, but as you heard in the call, the e-commerce profitability is up to low double digits and that's a big thing. To your question about DTC productivity and DTC EBIT margins, the 300 basis points, I'd say half gross margin, half real productivity, which is driven by two things. One is better labor management and better or revenue leverage, those are the two things. And in both cases, I think we're just getting started.

所以我認為這就是你——我們從未談論過它，但正如你在電話中聽到的那樣，電子商務的盈利能力達到了低兩位數，這是一件大事。對於你關於 DTC 生產力和 DTC 息稅前利潤率（300 個基點）的問題，我想說一半是毛利率，一半是實際生產力，這是由兩件事驅動的。一是更好的勞動力管理和更好的收入槓桿，這是兩件事。在這兩種情況下，我認為我們才剛剛開始。

We think there's a lot more opportunity on driving productivity and narrowing the gap between the wholesale EBIT margin and the DTC EBIT margin, because that will really help us get to the 15% operating margin.

我們認為，在提高生產力和縮小批發息稅前利潤率與 DTC 息稅前利潤率之間的差距方面還有很多機會，因為這將真正幫助我們達到 15% 的營業利潤率。

Harmit, how much of this pricing driver in each region?

Harmit，這個定價驅動因素在每個地區有多少？

Yeah pricing was modest. I would say, Paul, in -- the US is very modest. You know, we took some reductions last year. We have not taken more. AURs as it becomes more of a DTC business AURs, are up largely in our mainline stores. There's a full price flows across, you know the three regions. Little bit of pricing in Asia very modest price I mean, I think very little pricing in Europe.

是的，定價適中。保羅，我想說，美國非常謙虛。你知道，我們去年進行了一些削減。我們沒有採取更多。隨著它越來越成為 DTC 業務，我們的主線商店的 AUR 大幅上升。你知道這三個地區有完整的價格流動。我的意思是，亞洲的定價很少，價格非常適中，我認為歐洲的定價很少。

No, it's just building that. Any AUR increases that we're seeing is coming off of mix shift. As our consumers buy more elevated premium product. I mean, as we bring in a lot of these fashion fits, the looser, the low-waist, baggy, we're able to price up. But, I mean, to your point, this volume, the sales, it's generated half of volume, the velocity of our business.

不，這只是構建它。我們看到的任何 AUR 增加都是來自混合轉變。隨著我們的消費者購買更多優質產品。我的意思是，當我們引進很多這樣的時尚款式，寬鬆、低腰、寬鬆的款式時，我們就能提高價格。但是，我的意思是，就你的觀點而言，這個數量、銷售額，它產生了一半的數量，也就是我們業務的速度。

Got it. Thank you. Good luck.

知道了。謝謝。祝你好運。

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

現在，我想將發言權轉回公司進行總結發言。

Just I appreciate everybody joining the call. Thanks for the great engagement and questions. We look forward to connecting with you next quarter.

我只是感謝大家加入電話會議。感謝您的積極參與和提問。我們期待下個季度與您聯繫。

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

謝謝。今天的電話會議到此結束，請此時掛斷電話。