Levi Strauss & Co (LEVI) 2022 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. First Quarter Earnings Conference Call for the period ending February 27, 2022. (Operator Instructions) This conference is being recorded and may not be reproduced in whole or in part without written permission from the company. A telephone replay will be available 2 hours after the completion of this call through April 13, 2022, 1 week after the call for telephone replay. Please use conference ID 7585107. This conference call is also being broadcast over the Internet, and a replay of the webcast will be accessible for 1 quarter on the company's website, levistrauss.com.

女士們，先生們，美好的一天，歡迎參加截至 2022 年 2 月 27 日期間的 Levi Strauss & Co. 第一季度收益電話會議。（操作員說明）本次會議正在錄製中，未經許可不得全部或部分複制公司的書面許可。本次通話結束後 2 小時至 2022 年 4 月 13 日，即電話重播後 1 週，將提供電話重播。請使用會議 ID 7585107。本次電話會議也將通過 Internet 進行廣播，公司網站 levistrauss.com 將在 1 季度內重播網絡廣播。

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

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

Thanks, Latif, and thank you, everyone, for joining us on the call today to discuss the results for our first fiscal quarter of 2022. Joining me on today's call are Chip Bergh, President and CEO of Levi Strauss; and Harmit Singh, our CFO. We have posted complete Q1 financial results and 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 Latif，謝謝大家今天加入我們的電話會議，討論我們 2022 年第一財季的業績。今天和我一起參加電話會議的是 Levi Strauss 總裁兼首席執行官 Chip Bergh；和我們的首席財務官 Harmit Singh。我們已在我們網站investors.levistrauss.com 的投資者關係部分發布了完整的第一季度財務業績和收益報告。今天電話會議的網絡直播鏈接也可以在我們的網站上找到。

We'd like to remind everyone 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 the quarterly report on Form 10-Q that we filed today for the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today, and we assume no obligation to update any of these statements.

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

During this call, we will discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in today's earnings release on our IR website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call in its entirety is being webcast on our IR website, and a replay of this call will be available on the website shortly. Today's call is scheduled for 1 hour (Operator Instructions) And now I'd like to turn the call over to Chip.

在本次電話會議中，我們將討論某些非公認會計準則財務措施。今天在我們的投資者關係網站上發布的收益報告中提供了與最直接可比的 GAAP 財務指標的對賬。這些非 GAAP 措施無意替代我們的 GAAP 結果。最後，本次電話會議的全部內容正在我們的 IR 網站上進行網絡直播，很快將在網站上播放本次電話會議的重播。今天的通話時間為 1 小時（操作員說明），現在我想將通話轉給 Chip。

Thank you, Aida, and welcome, everyone, to today's call. Before we get into the quarter's results, I want to take a moment to recognize the devastating war that is happening in Ukraine. Our response to this humanitarian crisis has been guided by our values, from the philanthropic donations we're making to organizations like the International Rescue Committee and Care to our employees volunteering their time and opening their homes to refugees to donating tens of thousands of pieces of clothing to those in need. Our employees have been the ones leading the way, whether it's the manufacturing team in Poland selling denim bags for medical kits or a sales director in Warsaw housing refugee families. Our teams continue to demonstrate our values and inspire us to do more.

謝謝你，Aida，歡迎大家參加今天的電話會議。在我們了解本季度的業績之前，我想花點時間來認識一下烏克蘭正在發生的毀滅性戰爭。我們對這場人道主義危機的反應以我們的價值觀為指導，從我們向國際救援委員會和關懷組織等組織進行的慈善捐款，到我們的員工自願付出時間和向難民開放家園，再到捐贈數以萬計的物品衣服給有需要的人。我們的員工一直是引領潮流的人，無論是在波蘭銷售用於醫療包的牛仔布袋的製造團隊，還是在華沙收容難民家庭的銷售總監。我們的團隊繼續展示我們的價值觀並激勵我們做得更多。

With that, I'll move on to our results from the quarter. We're starting the fiscal year with strong momentum. We grew first quarter revenue by 22% to $1.6 billion with broad-based growth across markets, channels, category and gender, fueled by strong consumer demand across our portfolio of brands. We also continue to drive excellent profitability with adjusted EBIT growing even faster than revenue, returning to its high watermark of 14.9%.

有了這個，我將繼續討論本季度的結果。我們以強勁的勢頭開始了本財年。在我們品牌組合強勁的消費者需求的推動下，我們第一季度的收入增長了 22% 至 16 億美元，市場、渠道、類別和性別的廣泛增長。我們還繼續推動出色的盈利能力，調整後的息稅前利潤增長甚至快於收入，回到了 14.9% 的高水位線。

To achieve these strong results, our teams around the globe demonstrated their ability to execute amid a dynamic macro backdrop, including COVID-related supply chain disruptions and inflationary pressures. Last quarter, I spoke to you about several structural tailwinds that play to our advantage that we are fully committed to capitalizing on in this moment. Results we delivered this quarter highlight how our strategies are working, positioning us for solid long-term growth.

為了取得這些強勁的成果，我們在全球的團隊展示了他們在動態宏觀背景下的執行能力，包括與 COVID 相關的供應鏈中斷和通脹壓力。上個季度，我與您談到了幾個對我們有利的結構性順風，我們現在完全致力於利用這些順風。我們本季度交付的結果突出了我們的戰略是如何運作的，使我們能夠實現穩健的長期增長。

We are the global leader in a large and fast-growing market. In the U.S., denim category sales continued to deliver strong growth and are up 11% versus pre-pandemic levels of 2 years ago. As the market leader, we continue to push the category forward by launching premium-priced innovative products like the Circular 501, a new version of the 501 Original made with organic cotton, post-consumer recycled denim and designed to be recyclable. It's just one new addition to the looser fit denim trend we started that is driving significant growth in our bottoms business and represents roughly half of both our women's and men's bottoms assortment.

我們是一個龐大且快速增長的市場的全球領導者。在美國，牛仔布類別的銷售額繼續強勁增長，與 2 年前大流行前的水平相比增長了 11%。作為市場領導者，我們繼續推動這一類別的發展，推出高價創新產品，如 Circular 501，這是 501 Original 的新版本，採用有機棉、消費後再生牛仔布製成，設計為可回收。這只是我們開始的寬鬆版型牛仔布趨勢中的一項新功能，它推動了我們的褲裝業務的顯著增長，約占我們男女褲裝品類的一半。

Our brand equity has never been stronger and is driving outsized growth. Along with the quality and value of the product, the overall strength of the Levi's brand has enabled us to raise AURs by 10% without negatively impacting demand. Our ability to effectively take price has enabled us to mitigate cost pressures, including inflation in inputs and logistics. These decisions are instructed by powerful proprietary technology and analytics, including artificial intelligence and methodical analyses of price elasticity. In fact, even as we have raised prices, consumer demand has continued to grow and Levi's brand unit volume has now returned to 2019 levels.

我們的品牌資產從未如此強大，並正在推動超額增長。除了產品的質量和價值，Levi's 品牌的整體實力使我們能夠將 AUR 提高 10%，而不會對需求產生負面影響。我們有效控制價格的能力使我們能夠減輕成本壓力，包括投入和物流的通貨膨脹。這些決策由強大的專有技術和分析指導，包括人工智能和價格彈性的系統分析。事實上，即使我們提高了價格，消費者需求仍在持續增長，李維斯品牌的單位銷量現已恢復到 2019 年的水平。

We took select pricing actions last year, as well as early this fiscal year and we believe there remains additional headroom to raise prices in parts of our portfolio through the balance of this year and beyond as we continue to innovate and lead trends. Our direct-to-consumer business continues to thrive and deepen our connections with consumers. The differentiated experience we create for our consumers at our stores drove significant momentum through Q1, with global brick-and-mortar up nearly 50% versus prior year. We continued the rollout of our next-gen stores, destinations where our consumers can find our most elevated brand expression and personalized experience. These stores are showing encouraging results like NorthPark Mall in Dallas, which in its second month of operation, was the most productive store in our U.S. fleet.

我們在去年和本財年初採取了一些定價行動，我們相信隨著我們繼續創新和引領趨勢，在今年餘下時間及以後的時間裡，我們的部分投資組合仍有額外的價格上漲空間。我們的直接面向消費者的業務繼續蓬勃發展，並加深了我們與消費者的聯繫。我們在門店為消費者創造的差異化體驗在第一季度推動了巨大的發展勢頭，全球實體店與去年同期相比增長了近 50%。我們繼續推出我們的下一代商店，我們的消費者可以在這些目的地找到我們最高級的品牌表達和個性化體驗。這些商店顯示出令人鼓舞的結果，例如達拉斯的 NorthPark Mall，它在運營的第二個月是我們美國車隊中生產力最高的商店。

And as we continue to expand our physical presence, we're making strides expanding our digital presence. The Levi's app continues to show positive results, with monthly active users more than doubling in the quarter as well as increase in traffic and conversion across the U.S. and Europe. In Q2, the app will be rolled out to India and several European countries with further expansion later in the year. Finally, our global diversified portfolio is a key strength helping to drive strong growth even in these times of macro uncertainty. In Q1, we delivered growth in all areas of the business that are underpenetrated including women's, tops and international. All 5 brands in our portfolio contributed to growth, including the 2 value brands, Signature and Denizen together grew more than 10% and consumer trends in the value channel remain healthy.

隨著我們繼續擴大我們的實體存在，我們正在大踏步擴大我們的數字存在。 Levi's 應用程序繼續顯示出積極的結果，本季度每月活躍用戶增加了一倍以上，美國和歐洲的流量和轉化率也有所增加。在第二季度，該應用程序將在印度和幾個歐洲國家推出，並在今年晚些時候進一步擴展。最後，即使在宏觀不確定的時期，我們的全球多元化投資組合也是推動強勁增長的關鍵優勢。在第一季度，我們在所有未被充分滲透的業務領域實現了增長，包括女性、上衣和國際。我們投資組合中的所有 5 個品牌都為增長做出了貢獻，包括 2 個價值品牌 Signature 和 Denizen 合計增長超過 10%，價值渠道中的消費趨勢保持健康。

I will now touch on some key highlights from the quarter. The Levi's brand grew 20% with our top 5 markets, again outperforming the brand overall. Our Levi's men's business is experiencing exceptional growth with bottoms up 24%, representing the category's highest first quarter revenue in over a decade. Levi's women's bottoms also continue to see strength, up 21% versus prior year. And the 501 was up almost 50% in the quarter, demonstrating the love consumers have for our brand's most iconic product. Our Levi's tops business, which returned to growth versus pre-pandemic levels in Q4, increased 12%, driven by broad-based strength in men's, in addition to women's, which saw continued traction in wovens and dresses.

我現在將談談本季度的一些關鍵亮點。 Levi's 品牌在我們的前 5 個市場中增長了 20%，再次超越了品牌的整體表現。我們的 Levi's 男裝業務正在經歷非凡的增長，最低增長 24%，是該類別十多年來第一季度的最高收入。 Levi's 女裝褲裝也繼續走強，同比增長 21%。 501 在本季度上漲了近 50%，表明消費者對我們品牌最具標誌性的產品的喜愛。我們的 Levi's 上衣業務在第四季度恢復到與大流行前水平相比的增長，增長了 12%，這主要得益於男裝以及女裝的廣泛增長，女裝在梭織和連衣裙領域持續受到關注。

Direct-to-consumer momentum accelerated across the globe, generating 35% growth, driven by the continued recovery of brick-and-mortar as the severity of the pandemic has lessened, allowing consumers to come back to our stores. Our global brick-and-mortar growth was driven by both mainline and outlet stores in all geographical segments due to improved traffic trends and higher AURs. Though still down from pre-pandemic, we are pleased to see traffic in our most tourist-dependent locations beginning to recover. And since the start of the pandemic, we have doubled down on our strategy to transform our wholesale business into a more elevated, digitally-oriented and profitable market. Our global wholesale business grew 15% with our top 10 key strategic accounts collectively growing at an even faster pace.

隨著大流行的嚴重程度減輕，實體店的持續復甦推動了全球直接面向消費者的勢頭加速，實現了 35% 的增長，從而使消費者能夠回到我們的商店。由於客流量趨勢改善和 AUR 更高，我們的全球實體店增長受到所有地理區域的主線店和直銷店的推動。儘管仍比大流行前有所下降，但我們很高興看到我們最依賴遊客的地點的交通開始恢復。自大流行開始以來，我們已經加倍實施我們的戰略，將我們的批發業務轉變為一個更高水平、以數字化為導向和盈利能力更高的市場。我們的全球批發業務增長了 15%，我們的前 10 大關鍵戰略客戶共同以更快的速度增長。

In our Levi's brand's U.S. wholesale business grew 23%, achieving its highest first quarter revenues in over a decade. And based on the overwhelming success of the Levi's brand at Target, we've collectively decided to expand our partnership together, taking the brand further than either of us thought we would back in 2019. You'll remember, our goal back then was 500 doors, which is where we've been since last year. But as the results have been so strong, we will be rolling out to an additional 300 stores this spring. With the expansion, we'll be showcasing the strength of the brand and introducing 60-plus new styles for both men and women. We're picking up incremental new consumers to the Levi's brand at Target, and we're excited about these expansion plans.

在我們的李維斯品牌中，美國批發業務增長了 23%，實現了十多年來最高的第一季度收入。基於 Levi's 品牌在 Target 取得的巨大成功，我們共同決定擴大我們的合作夥伴關係，使該品牌比我們任何一個人在 2019 年都想得更遠。你會記得，我們當時的目標是 500門，這是我們自去年以來一直在的地方。但由於結果如此強勁，我們將在今年春天再推出 300 家門店。隨著擴張，我們將展示品牌的實力，並為男士和女士推出 60 多種新款式。我們正在 Target 為 Levi's 品牌吸引更多的新消費者，我們對這些擴張計劃感到興奮。

We've also doubled our premium business with Nordstrom, where our women's line has outperformed other brands. Furthermore, we're benefiting from more favorable floor space at key customers, and we're selectively increasing distribution in key wholesale specialty accounts, aligned with younger consumers like Urban Outfitters. Finally, net revenues through all digital channels were up 16% despite stores reopening, representing approximately 25% of total first quarter revenues.

我們還將與 Nordstrom 的高端業務翻了一番，我們的女裝系列在該領域的表現優於其他品牌。此外，我們受益於主要客戶更有利的佔地面積，我們正在選擇性地增加主要批發專業客戶的分銷，與 Urban Outfitters 等年輕消費者保持一致。最後，儘管商店重新開業，但通過所有數字渠道的淨收入增長了 16%，約佔第一季度總收入的 25%。

I'll now provide specific highlights on Signature, Dockers and Beyond Yoga. Signature saw continued momentum, benefiting from growth across genders and categories as well as an increase in AURs. And based on insights of our top-selling Carpenter jean, we will also be expanding Signature into everyday workwear this spring. Dockers had another quarter of sequential improvement in growth versus pre-pandemic levels, while driving strong profitability. Revenue continues to shift to a healthier mix with nearly half of sales now coming from outside the U.S. and about 1/3 in DTC. The brand is also showing encouraging trends with the 18- to 34-year-old demographic, who now drive nearly 40% of sales on Dockers.com in the U.S.

我現在將提供有關 Signature、Dockers 和 Beyond Yoga 的具體亮點。 Signature 繼續保持勢頭，受益於跨性別和類別的增長以及 AUR 的增加。基於對我們最暢銷的 Carpenter 牛仔褲的洞察，我們還將在今年春天將 Signature 擴展到日常工作服。與大流行前水平相比，Dockers 的增長又連續增長了四分之一，同時推動了強勁的盈利能力。收入繼續轉向更健康的組合，現在近一半的銷售額來自美國以外，約 1/3 來自 DTC。該品牌在 18 至 34 歲的人群中也顯示出令人鼓舞的趨勢，他們現在在美國 Dockers.com 上推動了近 40% 的銷售額。

And the integration of Beyond Yoga continues to go well. The brand has started the year strong, exceeding our expectations in Q1. It's a well-positioned premium brand that significantly expands our total addressable market, while contributing to the diversification of the company. Beyond the business results, we are very focused on starting to build the capability to scale the business and have started to make some terrific hires in e-commerce, brick-and-mortar and marketing.

而Beyond Yoga的整合繼續進展順利。該品牌今年開局強勁，超過了我們在第一季度的預期。這是一個定位良好的高端品牌，顯著擴大了我們的總目標市場，同時為公司的多元化做出了貢獻。除了業務成果之外，我們還非常專注於開始建立擴大業務的能力，並開始在電子商務、實體店和營銷領域招聘一些優秀人才。

Before I turn it over to Harmit, I want to recognize the hard work and dedication of our teams across the organization. We delivered exceptional results in a uniquely challenging operating environment. I look forward to continuing the conversation at an Investor Day that we will be holding in New York on June 1, where investors will have an opportunity to hear the latest about our long-term strategic plans and meet with the broader leadership team. We will share additional details in the coming weeks. Harmit, over to you.

在我把它交給 Harmit 之前，我想表彰我們整個組織團隊的辛勤工作和奉獻精神。我們在極具挑戰性的運營環境中取得了卓越的成果。我期待在我們將於 6 月 1 日在紐約舉行的投資者日繼續進行對話，屆時投資者將有機會了解有關我們長期戰略計劃的最新消息，並與更廣泛的領導團隊會面。我們將在接下來的幾週內分享更多細節。哈密特，交給你了。

Thanks, Chip. On the heels of record results, we delivered in 2021. We continue to achieve excellent financial results in Q1 of 2022. We grew constant currency revenue by 26% compared to last year, driving growth across regions and channels. Supply chain-related issues limited further revenue opportunity by approximately $60 million or 5%, primarily in the U.S., where the consumer continues to be strong with demand outpacing supply.

謝謝，奇普。繼創紀錄的業績之後，我們在 2021 年交付。我們在 2022 年第一季度繼續取得出色的財務業績。我們的固定貨幣收入與去年相比增長了 26%，推動了跨地區和跨渠道的增長。供應鏈相關問題將進一步的收入機會限制了約 6000 萬美元或 5%，主要是在美國，那裡的消費者繼續保持強勁，需求超過供應。

We drove record gross margin, demonstrating the power of our iconic brands. That, combined with our disciplined execution, helped us deliver an adjusted EBIT margin of 14.9% and adjusted diluted EPS growth of 35% to $0.46 compared to the prior year. We returned capital to our shareholders through a higher dividend that now exceeds pre-pandemic levels and the repurchase of 3 million shares in the quarter. And given our continued outperformance and the momentum of a brand, we also reaffirmed our financial outlook for the year as we remain confident in our ability to deliver strong results in the future. And we achieved these important objectives in spite of the impacts of rising inflation, COVID resurgences impacting our business and now the war in Ukraine that is impacting so many lives.

我們創造了創紀錄的毛利率，展示了我們標誌性品牌的力量。這與我們嚴格的執行相結合，幫助我們實現了 14.9% 的調整後息稅前利潤率和調整後的攤薄每股收益增長 35% 至 0.46 美元。我們通過更高的股息（現已超過大流行前水平）和本季度回購 300 萬股股票，向股東返還了資本。鑑於我們持續的優異表現和品牌的發展勢頭，我們還重申了今年的財務前景，因為我們對未來取得強勁業績的能力仍然充滿信心。儘管通貨膨脹率上升、新冠病毒捲土重來影響我們的業務，以及現在影響如此多生命的烏克蘭戰爭，我們還是實現了這些重要目標。

I'll now walk you through our first quarter results, for which my comments will reference constant currency comparisons to 2021 unless I indicate otherwise. First quarter net revenue growth of 26% was driven half by higher volumes and half by an increase in AURs. This balanced growth demonstrates the strong consumer preference for all our brands, even as we price to offset inflation. In the quarter, sales of our direct-to-consumer channel increased 39%, driven by higher AURs, which were up 14% as well as by increased traffic and [stoking] expansion. DTC now represents 39% of total net revenues versus 36% last year. Our e-commerce business was up 13% year-over-year, driven by traffic and AURs, and represented 9% of total net revenues, up from 6% pre-pandemic 2019.

我現在將向您介紹我們的第一季度業績，除非我另有說明，否則我的評論將參考與 2021 年的恆定貨幣比較。第一季度淨收入增長 26%，一半是由於銷量增加，一半是由於 AUR 的增加。這種平衡的增長表明消費者對我們所有品牌的強烈偏好，即使我們通過定價來抵消通貨膨脹。在本季度，我們的直接面向消費者渠道的銷售額增長了 39%，這得益於更高的 AUR（增長了 14%）以及流量增加和 [stoking] 擴張。 DTC 現在佔總淨收入的 39%，而去年為 36%。在流量和 AUR 的推動下，我們的電子商務業務同比增長 13%，佔總淨收入的 9%，高於 2019 年大流行前的 6%。

Record adjusted gross margin continued to strengthen, expanding a 170 basis points to 59.4% due to a higher mix of sales from DTC as well as price increases, lower promotions and higher share of full price sales, partially offset by higher product costs. Our gross margin accretion also includes the impact of 20 basis points of unfavorable currency and 20 basis points of higher air freight costs.

由於 DTC 的銷售組合增加以及價格上漲、促銷活動減少和全價銷售份額增加，部分被較高的產品成本抵消，創紀錄的調整後毛利率繼續增強，擴大 170 個基點至 59.4%。我們的毛利率增加還包括不利貨幣 20 個基點和空運成本上漲 20 個基點的影響。

Moving to SG&A. Adjusted SG&A expenses in the quarter was $708 million or 44.5% of net revenue, relatively flat as a percentage when compared to 44.3% of net revenue in Q1 2021. The approximate $130 million increase relative to last year was primarily due to higher selling expenses and increased distribution expenses associated with higher volumes and labor costs, higher spending in A&P as we invest evenly across the year and higher incentive compensation given the outperformance versus expectations, partially offset by a currency benefit due to the stronger U.S. dollar.

轉移到 SG&A。本季度調整後的 SG&A 費用為 7.08 億美元，占淨收入的 44.5%，與 2021 年第一季度淨收入的 44.3% 相比，該百分比相對持平。與去年相比增加了約 1.3 億美元，主要是由於較高的銷售費用和與更高的銷量和勞動力成本相關的分銷費用增加，由於我們全年平均投資而導致的 A&P 支出增加，以及由於業績優於預期而提高的激勵薪酬，部分被美元走強帶來的貨幣收益所抵消。

Our record high gross margin, coupled with disciplined SG&A expenditure, enabled us to drive an adjusted EBIT margin of 14.9% with adjusted EBIT dollars up 37%, even as we continue to strategically invest in our long-term growth including accelerating our direct-to-consumer business and investing in advertising. Adjusted net income of $189 million was up from $140 million in Q1 of '21, as lower interest expense due to lower debt levels and benefits from deferred comp interest expense was offset by higher taxes due to a higher rate versus prior year. We expect interest expense to normalize for the rest of 2022.

我們創紀錄的高毛利率，加上嚴格的 SG&A 支出，使我們能夠推動調整後 EBIT 利潤率達到 14.9%，調整後 EBIT 美元增長 37%，即使我們繼續戰略性地投資於我們的長期增長，包括加速我們的直接-消費者業務和廣告投資。調整後的淨收入為 1.89 億美元，高於 21 年第一季度的 1.4 億美元，因為較低的債務水平和遞延補償利息支出帶來的利息支出較低，但由於與上年相比較高的利率而導致的較高稅收抵消了這一影響。我們預計利息費用將在 2022 年剩餘時間內正常化。

I'll now take you through key highlights by segment. Recall, the regional segments include our Levi's brands, Levi's, Signature and Denizen, while the other brand segment includes Dockers and Beyond Yoga. In the Americas, revenues grew 27%, driven by higher unit volumes and higher prices across channels. Our largest market, the U.S., remains very strong, delivering growth of 24% versus prior year. Our company-operated stores had a particularly strong quarter, also driven by increased traffic, while wholesale growth was robust and also driven by strong sell-through. Latin America was up nearly 70% with broad-based growth across channels, with particular strength in our third largest market, Mexico as well as Brazil and Chile.

我現在將按部分向您介紹主要亮點。回想一下，區域細分市場包括我們的 Levi's 品牌、Levi's、Signature 和 Denizen，而其他品牌細分市場包括 Dockers 和 Beyond Yoga。在美洲，收入增長了 27%，這得益於更高的單位銷量和更高的渠道價格。我們最大的市場美國仍然非常強勁，與去年相比增長了 24%。我們公司自營商店的季度表現特別強勁，這也是受到客流量增加的推動，而批發增長強勁，也受到強勁銷售的推動。拉丁美洲增長了近 70%，跨渠道的廣泛增長，在我們的第三大市場墨西哥以及巴西和智利尤為強勁。

Building on the positive momentum from the past 2 quarters, Europe delivered another robust quarter, up 13% reported and 21% constant, demonstrating the resilience of the consumer and strength of the Levi's brand despite the Omicron variant. As a reminder, the vast majority of our business is concentrated in Western Europe, with only 4% of total global net revenues generated in Eastern Europe, of which Russia comprises half.

在過去兩個季度的積極勢頭的基礎上，歐洲又迎來了一個強勁的季度，報告增長了 13%，保持不變，增長了 21%，這表明儘管有 Omicron 變體，消費者的彈性和 Levi's 品牌的實力。提醒一下，我們的絕大多數業務都集中在西歐，在東歐產生的全球淨收入中僅佔全球總收入的 4%，其中俄羅斯佔一半。

Direct-to-consumer was up 56%, reflecting price increases and higher traffic as nearly 1/3 of company-operated stores were closed last year, and wholesale grew 3% due to gains in brick-and-mortar. Nearly all countries drove results with double-digit sales growth in key markets such as Germany and the U.K., and we continue to see sequential improvement in Asia, up 11% reported and 14% constant, giving us confidence that as COVID-related restrictions eventually abate, our opportunity for growth remains as compelling as ever in the region.

直接面向消費者的銷售額增長了 56%，這反映了價格上漲和客流量增加，因為去年關閉了近 1/3 的公司自營商店，而由於實體店的增長，批發業務增長了 3%。幾乎所有國家/地區都在德國和英國等主要市場實現了兩位數的銷售增長，我們繼續看到亞洲的連續改善，報告增長 11% 和 14% 不變，這讓我們相信，隨著與 COVID 相關的限制最終減弱，我們的增長機會在該地區仍然像以往一樣引人注目。

Direct-to-consumer growth of 19% was led by continued strength in company-operated mainland stores with outlets returning to growth. Asia, excluding China, was up nearly 20% as most markets, including India, Indonesia, Japan, Korea and Malaysia delivered strong growth as economies began reopening post-COVID-linked closure. China, which is only 3% of our total business, was down mid-single digits as growth in e-commerce was more than offset by declines across other channels due to COVID-related lockdown. Overall, revenue growth in Asia drove operating profits up 53% and delivered operating margins of 17%.

直接面向消費者的增長 19% 主要得益於公司自營內地門店的持續增長，門店恢復增長。亞洲（不包括中國）上漲近 20%，因為隨著經濟體開始重新開放與 COVID 相關的關閉後，包括印度、印度尼西亞、日本、韓國和馬來西亞在內的大多數市場實現了強勁增長。中國僅占我們總業務的 3%，但由於與 COVID 相關的封鎖，電子商務的增長被其他渠道的下降所抵消，因此下降了中個位數。總體而言，亞洲的收入增長推動營業利潤增長 53%，營業利潤率達到 17%。

We also recently announced our decision to transition from a license to a directly operated business in Thailand. This will have minimal impact on our financial results in 2022 as we reposition the business for profitable growth. We believe that under our direct leadership, we can accelerate growth in Thailand as well as Asia as a region.

我們最近還宣布了我們決定在泰國從許可證過渡到直接經營的業務。隨著我們重新定位業務以實現盈利增長，這將對我們 2022 年的財務業績影響微乎其微。我們相信，在我們的直接領導下，我們可以加速泰國乃至亞洲地區的增長。

Revenues of our other brands were up 105% and contributed 3 points to the company's growth for the quarter. This was driven by Dockers, whose revenue was approximately 50% higher than last year; and the acquisition of Beyond Yoga, whose sales were approximately $26 million. Both these brands are also profitable.

我們其他品牌的收入增長了 105%，為本季度公司的增長貢獻了 3 個百分點。這是由 Dockers 推動的，其收入比去年高出約 50%；以及收購Beyond Yoga，其銷售額約為2600萬美元。這兩個品牌也是有利可圖的。

Turning to balance sheet and cash flows. Inventories at the end of the quarter were 20% above Q1 2021, slightly below sales growth. We are building core Levi's inventory primarily in the U.S. through the first half of the year to better meet the brand's growing demand. As a reminder, approximately 2/3 of our inventory is comprised of core nonseasonal product that poses minimum markdown risk. Our strong inventory position demonstrates our ability to manage global supply chain challenges and remains a competitive strength of our company.

轉向資產負債表和現金流。本季度末的庫存比 2021 年第一季度高出 20%，略低於銷售增長。今年上半年，我們主要在美國建立李維斯的核心庫存，以更好地滿足該品牌不斷增長的需求。提醒一下，我們大約 2/3 的庫存由核心的非季節性產品組成，這些產品的降價風險最小。我們強大的庫存狀況證明了我們應對全球供應鏈挑戰的能力，並且仍然是我們公司的競爭優勢。

Cash and liquidity remained strong, with end of quarter net debt of $248 million and overall liquidity of $1.6 billion. Our leverage ratio is now 1.1x, the lowest it has been since the mid-'90s. Adjusted free cash flow in the first quarter was negative $124 million, a decrease of $115 million compared to the first quarter of '21 due to our increased capital returns to shareholders via share repurchases and dividends. Last quarter, we announced we increased our quarterly dividend payment to $0.10 per share, exceeding pre-pandemic levels based on our strong performance. And in the quarter, we repurchased approximately 3 million shares. Subsequent to quarter end, the company repurchased 2 million shares for $40 million. This completes the $200 million buyback program authorized by the Board in late 2021.

現金和流動性依然強勁，季度末淨債務為 2.48 億美元，整體流動性為 16 億美元。我們的槓桿率現在是 1.1 倍，是自 90 年代中期以來的最低水平。第一季度調整後的自由現金流為負 1.24 億美元，與 21 年第一季度相比減少了 1.15 億美元，原因是我們通過股票回購和股息增加了對股東的資本回報。上個季度，我們宣布將季度股息支付增加到每股 0.10 美元，基於我們的強勁表現，超過了大流行前的水平。在本季度，我們回購了大約 300 萬股。在季度末，公司以 4000 萬美元回購了 200 萬股股票。這完成了董事會在 2021 年底授權的 2 億美元回購計劃。

Moving on to our guidance for fiscal '22. We continue to see strong demand for our products across geographies and categories. And our teams remain focused on executing on our strategic priorities to capitalize on these opportunities through the balance of the year. The underlying momentum we see will allow us to offset some of the headwinds associated with the war in Ukraine and its broader macroeconomic implications as well as incremental currency headwinds, which together will impact revenue by approximately $200 million and EPS by approximately $0.15.

繼續我們對 '22 財年的指導。我們繼續看到不同地區和類別對我們產品的強勁需求。我們的團隊仍然專注於執行我們的戰略重點，以在今年餘下時間利用這些機會。我們看到的潛在動力將使我們能夠抵消與烏克蘭戰爭及其更廣泛的宏觀經濟影響以及增加的貨幣逆風相關的一些不利因素，這些因素將共同影響約 2 億美元的收入和約 0.15 美元的每股收益。

On balance, despite these incremental headwinds, given the strong momentum in our business, we are reaffirming our full year guidance and continue to expect double-digit revenue growth for the full year of 11% to 13% or $6.4 billion to $6.5 billion and adjusted EPS of $1.50 to $1.56. This implies 8% to 10% revenue growth for the remainder of the year. While we are maintaining our outlook, we expect it will now be comprised of even stronger growth in the Americas, primarily led by the U.S. and continued strength in Asia, offset by reduced growth in Europe due to the unfavorable foreign exchange rate and the reduced revenue expectations in Russia. Our outlook assumes no material worsening of current conditions.

總的來說，儘管存在這些增量逆風，但鑑於我們業務的強勁勢頭，我們重申了我們的全年指導，並繼續預計全年收入將實現 11% 至 13% 或 64 億美元至 65 億美元的兩位數增長並進行調整每股收益為 1.50 美元至 1.56 美元。這意味著今年剩餘時間的收入將增長 8% 至 10%。雖然我們維持我們的前景，但我們預計現在它將包括美洲更強勁的增長，主要由美國引領，亞洲持續強勁，但由於不利的外匯匯率和收入減少而被歐洲增長放緩所抵消對俄羅斯的期望。我們的展望假設當前狀況不會出現實質性惡化。

In conclusion, we delivered strong financial performance in 2021 as we emerge from the pandemic, a structurally healthier business. The continuation of strong consumer demand globally and solid momentum across our portfolio brand reinforces our confidence in our outlook. Our teams are executing across our strategic initiatives, while effectively managing a dynamic macro and operating environment, supporting delivery of profitable growth.

總之，隨著我們擺脫大流行病，我們在 2021 年實現了強勁的財務業績，這是一項結構上更健康的業務。全球持續強勁的消費者需求和我們投資組合品牌的強勁勢頭增強了我們對前景的信心。我們的團隊正在執行我們的戰略計劃，同時有效地管理動態的宏觀和運營環境，支持實現盈利增長。

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

有了這個，我現在將繼續打開問答電話。

(Operator Instructions) Our first question comes from the line of Paul Lejuez of Citigroup.

（操作員說明）我們的第一個問題來自花旗集團的 Paul Lejuez。

You guys reaffirmed top and bottom line. Just curious if there's any change in the composition of how you get there from a gross margin versus SG&A perspective compared to what you were thinking 3 months ago, which I think was gross margin up 15, 30 basis points, SG&A leverage of 10%. Any changes there?

你們重申了頂線和底線。只是好奇，與 3 個月前的想法相比，從毛利率與 SG&A 的角度來看，你的實現方式是否有任何變化，我認為毛利率上升了 15、30 個基點，SG&A 槓桿率為 10%。那裡有什麼變化嗎？

And then I guess even higher level, a lot of uncertainties out there. I heard what you just said Harmit about some of the moving parts, U.S. versus Europe, but just curious what gives you confidence in the outlook. Overall, if there's anything you can share in terms of order books, how you're thinking about pricing and how that could influence the top line? Anything you could share in terms of what gives you confidence in the outlook?

然後我想更高的層次，還有很多不確定性。我聽到了你剛才所說的關於美國與歐洲的一些動態部分的 Harmit，但我只是好奇是什麼讓你對前景充滿信心。總體而言，如果您可以在訂單簿方面分享任何內容，您是如何考慮定價的，以及這將如何影響收入？您可以分享什麼讓您對前景充滿信心？

Thanks, Paul. Great question. Let me talk about the overall perspective on reaffirming the top line and the bottom line guidance, and I'll come to the composition in a minute. We continue to benefit from several consumer trends that uniquely position us to -- in the marketplace, including the global casualization, the return to the office and the new denim trend.

謝謝，保羅。好問題。讓我談談重申頂線和底線指導的整體觀點，我將在一分鐘內談到構圖。我們繼續受益於幾種獨特的消費趨勢——在市場上，包括全球休閒化、重返辦公室和新的牛仔布趨勢。

Levi's engine is strong. Our core business is really strong, as evidenced in the U.S. And the good news for us is all our brands, Dockers, Beyond Yoga, Signature, Denizen beside Levi's are showing momentum and accretive to growth. Balance of Europe is healthy, and we're seeing it in the order books. We get a prebook largely from wholesale, and we're seeing strong demand for the balance of the year. If you look at gender, men and women saw strong double-digit growth in Q1 and the consumer demand continues to be incredibly strong across the portfolio.

李維斯的引擎很強大。正如美國所證明的那樣，我們的核心業務非常強大。對我們來說，好消息是我們所有的品牌，Dockers、Beyond Yoga、Signature、Denizen 以及 Levi's 都顯示出增長勢頭和增長。歐洲的平衡是健康的，我們在訂單簿中看到了它。我們主要從批發中獲得預訂，並且我們看到對今年餘額的強勁需求。如果從性別來看，男性和女性在第一季度實現了兩位數的強勁增長，整個投資組合的消費者需求仍然非常強勁。

The other good news in Q1 was it was a balanced growth. AURs were up 10%, as Chip mentioned, but units were also up and is an equal balance, which is really, really good. And that is despite the pricing that we have taken. And we're seeing demand trends in wholesale channel signal continued strength. I talked about the order book in Europe. Asia is benefiting from the reopening of the economy. So ex-China, which is in lockdown, we've seen as economies open demand for the brand.

第一季度的另一個好消息是增長平衡。正如 Chip 所提到的，AUR 增長了 10%，但單位也增長了，並且處於平衡狀態，這非常非常好。儘管我們已經採取了定價。我們看到批發渠道的需求趨勢表明持續走強。我談到了歐洲的訂單。亞洲正在從經濟重新開放中受益。因此，在處於封鎖狀態的中國以外，我們已經看到經濟體對該品牌的需求開放。

And the underpenetrated areas of business, women's tops saw double-digit growth and internationals continue to grow. So overall, a fairly robust quarter and good signals for the rest of the -- for the year based on what we're seeing right now. We don't get into quarter 2, but March momentum, early signs are still fairly strong. And so that gives us confidence as we think about the future.

而在業務滲透不足的領域，女性上衣實現了兩位數的增長，國際品牌繼續增長。因此，總體而言，根據我們目前所看到的情況，一個相當強勁的季度和今年剩餘時間的良好信號。我們沒有進入第 2 季度，但 3 月份的勢頭，早期跡象仍然相當強勁。這讓我們在思考未來時充滿信心。

I think to your question about the composition, I reflected the change in composition regionally. But in terms of gross margin, we started the year very strong. We were up big time relative to last year. Our expectation for the -- on a full year basis is gross margin probably is up 20 to 40 basis points is slightly higher. That's on the back of a strong first quarter, with Russia essentially closed and China, which are high gross margin business, there's a bit of an offset, but we think we'll end the year slightly stronger than we reflected a quarter ago.

我認為對於你關於組成的問題，我反映了區域組成的變化。但就毛利率而言，我們今年開局非常強勁。與去年相比，我們上漲了很多。我們對全年的毛利率可能會上升 20 到 40 個基點的預期略高。這是在第一季度強勁的背景下，俄羅斯基本上關閉，而中國是高毛利率業務，有一點抵消，但我們認為今年年底我們將比我們在一個季度前反映的略強。

SG&A, I'd say slightly worse. We said would leverage, we think flat to slightly down. And that's largely because we've had higher -- we beat our expectations in Q1, internal expectations, which is largely for the year paid on constant currency. So there's a slightly higher incentive comp accrual. Our view for the rest of the year is SG&A grows at around what the revenue growth is. And EBIT percentage still grows year-over-year, 20 to 30 basis points. So generally, we think structurally, it's a pretty sound business that we believe we will deliver as we end 2022 and step into '23.

SG&A，我會說稍微差一點。我們說會加槓桿，我們認為持平到小幅下調。這主要是因為我們有更高的 - 我們在第一季度超出了我們的預期，內部預期，這主要是針對以固定貨幣支付的年度。所以有一個略高的激勵補償應計。我們對今年剩餘時間的看法是 SG&A 的增長速度與收入增長的速度差不多。息稅前利潤百分比仍同比增長 20 至 30 個基點。因此，總的來說，我們從結構上認為，這是一項非常穩健的業務，我們相信我們將在 2022 年結束併步入 23 年時交付。

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

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

Chip, on the last call, you shared your enthusiasm for the European business as we kicked off 2022. Fast forward to today, ex-Russia and ex-FX, curious to know if you're seeing anything that's changing in your thinking on Europe? Are you seeing any slowdown in Western European consumption patterns as of late?

Chip，在最後一次電話會議上，您分享了我們在 2022 年開始時對歐洲業務的熱情。快進到今天，前俄羅斯和前外匯，很想知道您是否看到您對歐洲的看法發生了任何變化?您最近看到西歐消費模式有任何放緩嗎？

And then Harmit, FX was a material headwind to your European business, 800 basis points. Just curious to know how we should think about maybe 2Q growth in Europe on a constant currency basis or maybe on a full year basis? That would be very helpful.

然後是 Harmit，FX 對您的歐洲業務造成了重大不利影響，800 個基點。只是想知道我們應該如何考慮歐洲第二季度的增長（以固定貨幣為基礎或以全年為基礎）？那將非常有幫助。

Okay. Laurent, let me quickly address the Europe question, and then we can talk about the other details you wanted. But generally, Europe had a very strong quarter. As you know, they were up 13% reported, 21% constant. Now granted, they were lapping a softer quarter a year ago because 1/3 of our doors were closed. But generally, a strong quarter.

好的。 Laurent，讓我快速解決歐洲問題，然後我們可以討論你想要的其他細節。但總的來說，歐洲有一個非常強勁的季度。如你所知，他們報告了 13% 的增長，21% 保持不變。現在，由於我們 1/3 的門都關上了，他們一年前的季度業績較軟。但總的來說，這是一個強勁的季度。

The prebook in Europe, which is the demand signal we get from wholesale accounts continues to be strong. In Russia, generally closed for the rest of the year, that's our expectation. And FX, we think Europe, on a total basis will be flat year-over-year. But if you back out Russia and the FX, which is broadly equally weighted in terms of the impact, Europe will be up high single digit, which is what we said at the beginning of the year would be. So generally, we think Europe's continued growth is here to stay, and that's what we are sensing or seeing in the demand. I think the FX impact for -- for Europe, we think is about 400 basis points, and the rest is largely Russia. Russia is about 2% of overall business for the company. And if you think about how Western Europe and Eastern Europe is in a mix, I think Western Europe for Europe is about 85% of our business. And as countries open up the U.K., France, listing a strong bounce back for our product. So Eastern Europe is a much smaller piece, and then Russia is half of that 15% mix for Europe, but generally small overall for the company.

歐洲的預訂，即我們從批發賬戶獲得的需求信號繼續強勁。在俄羅斯，今年剩餘時間一般都關閉，這是我們的預期。外匯，我們認為歐洲總體上將與去年同期持平。但如果你退出俄羅斯和外匯，這在影響方面的權重大致相同，歐洲將上漲個位數，這就是我們在年初所說的那樣。因此，總的來說，我們認為歐洲的持續增長將繼續存在，這就是我們在需求中感受到或看到的。我認為對歐洲的外匯影響約為 400 個基點，其餘主要是俄羅斯。俄羅斯約佔該公司整體業務的 2%。如果你考慮一下西歐和東歐是如何混合在一起的，我認為西歐的歐洲業務約占我們業務的 85%。隨著各國開放英國、法國，我們的產品出現強勁反彈。所以東歐是一個小得多的部分，然後俄羅斯是歐洲 15% 組合的一半，但對公司來說總體上很小。

Our next question comes from Matthew Boss of JPMorgan.

我們的下一個問題來自摩根大通的 Matthew Boss。

Congrats on another nice quarter, guys.

恭喜你們又迎來了一個美好的季度，伙計們。

Thanks, Matt.

謝謝，馬特。

Thank you Matt.

謝謝馬特。

So Chip, can you speak to business trends that you're seeing across categories and maybe looking at this on a micro versus macro level, do you see the Levi's brand taking share and acquiring new customers out of this pandemic? And then as we think about the work that you've done with the brand, are you seeing any pushback to price? What do you think is driving that pricing opportunity? And what inning do you think that we're in as it relates to the regional opportunity from a price perspective today?

因此，Chip，您能否談談您在各個類別中看到的業務趨勢，也許從微觀和宏觀層面來看，您是否看到 Levi's 品牌從這場大流行中獲得份額並獲得新客戶？然後，當我們考慮您為該品牌所做的工作時，您是否看到任何價格回落？您認為推動定價機會的因素是什麼？從今天的價格角度來看，您認為我們所處的區域與區域機會有關嗎？

Yes. Well, there's a lot to unpack there, Matt. But I guess I would start by saying that the denim category is still very, very healthy on a past 12-month basis here in the U.S., which is still by far our biggest market. Denim is up 11%. It's growing faster than total apparel. We've talked in the past about the tailwinds that we have that are carrying us. And as the market leader, by far, on a global basis, we believe a big part of our responsibility is driving category growth.

是的。好吧，馬特，那裡有很多東西要解開。但我想我首先要說的是，在過去的 12 個月裡，牛仔布類別在美國仍然非常非常健康，這仍然是我們迄今為止最大的市場。牛仔布上漲 11%。它的增長速度超過了服裝總量。我們過去曾談論過我們所擁有的順風。作為迄今為止在全球範圍內的市場領導者，我們相信我們的很大一部分責任是推動品類增長。

And we're doing that with innovation and driving the new denim cycle, if you will, with the looser, baggier fits. Levi's is growing. We are bigger than the #2, #3 and #4 brands combined on a global basis. We're #1 on men's, #1 on women's. We are growing share. We are picking up new consumers. We mentioned in the script we're adding 300 more stores -- 300 more Target stores, and that is because that is working. And we are picking up new consumers to Levi's just by having distribution in Target. And we are growing share on a global basis.

我們正在通過創新和推動新的牛仔週期來做到這一點，如果你願意的話，更寬鬆、更寬鬆的款式。李維斯正在成長。在全球範圍內，我們的規模超過了排名第二、排名第三和排名第四的品牌。我們在男裝方面排名第一，在女裝方面排名第一。我們的份額正在增長。我們正在吸引新的消費者。我們在腳本中提到我們要增加 300 家商店——300 家 Target 商店，這是因為那是有效的。我們只是通過在 Target 進行分銷來為 Levi's 吸引新的消費者。我們在全球範圍內的份額正在增長。

We talked previously about gains with women. We are gaining share with the younger consumer as well, which is really, really important, resonating with that younger consumer is one indicator of brand strength. I mean, the other thing that I'm really excited about is we mentioned that the 501 was up 50% this quarter. And when your most iconic item is growing like that it says something about the overall strength of the brand. And it's not just in one market. This brand is, I would say very confidently has never been stronger than this. And I would say semi-confidently, this is the strongest the brand has ever been on a global basis.

我們之前談到了女性的收穫。我們也在獲得年輕消費者的份額，這非常非常重要，與年輕消費者產生共鳴是品牌實力的一個指標。我的意思是，我真正興奮的另一件事是我們提到 501 本季度上漲了 50%。當您最具標誌性的商品以這種方式增長時，它說明了品牌的整體實力。而且它不僅在一個市場上。這個品牌，我會非常自信地說，從來沒有比這更強大過。我會半自信地說，這是該品牌在全球範圍內最強大的。

We have taken pricing. We mentioned that AURs are up 10%. That is on the back of a very, very strong brand, and it's sticking. We've not had to backtrack at all on pricing. And as we said, our growth was half volume growth and half AUR growth, driven by price increases. So again, another really strong indicator of the health of the brand.

我們採取了定價。我們提到 AUR 增長了 10%。那是在一個非常非常強大的品牌的背後，而且它一直在堅持。我們根本不必在定價上回溯。正如我們所說，在價格上漲的推動下，我們的增長是一半的銷量增長和一半的 AUR 增長。再說一次，這是品牌健康狀況的另一個真正強有力的指標。

And finally, the other big indicator of the health of the brand is just these record gross margins that we're delivering. So we're continuing to innovate. We talked about the Circular 501, which is made from organic cotton, recycled post-consumer waste recycled cotton, and it is fully recyclable. That's premium priced. We're not seeing any real pushback on pricing at all at this point. And -- but having said that, I don't want to suggest that our head is in the sand. We're reading the same headlines as everybody else is in the same [Jamie Dimon] letter that everybody else is, we're watching it very, very carefully.

最後，品牌健康的另一個重要指標就是我們提供的這些創紀錄的毛利率。因此，我們正在繼續創新。我們談到了 Circular 501，它是由有機棉、回收的消費後廢棄的再生棉製成的，並且是完全可回收的。那是溢價。在這一點上，我們根本沒有看到任何真正的定價阻力。而且——但話雖如此，我不想暗示我們的頭在沙子裡。我們正在閱讀與其他人相同的標題，就像其他人在同一封 [Jamie Dimon] 信中一樣，我們正在非常非常仔細地觀察它。

But at this point, the consumer seems to be really strong. And our brand still represents a tremendous value.

但在這一點上，消費者似乎真的很強大。我們的品牌仍然代表著巨大的價值。

The last thing I would say is from a competitive standpoint, when the category is growing this robustly, it doesn't have to turn into a zero-sum game about the only way to grow is to steal share from somebody else because when you're the market leader, your chances of being the share donor is higher than being the share gainer. And that's why growing the category is so important, and it floats all boats, and we really like that. So the business is very, very healthy, and we feel good about the consumer. And we do believe that there is still opportunity for more pricing down the road in the second half of the year, which we think we're going to need based on where costs are going. And we've been extremely surgical with how we've done our price increases, and I think that's a big part of the reason why it's been sticking.

我要說的最後一件事是從競爭的角度來看，當這個類別增長如此強勁時，它不必變成零和遊戲，唯一的增長方式就是從別人那裡竊取份額，因為當你'作為市場領導者，您成為股份捐贈者的機會高於成為股份獲得者的機會。這就是為什麼增加這個類別如此重要，它漂浮所有的船，我們真的很喜歡。所以生意非常非常健康，我們對消費者感覺很好。而且我們確實相信，在下半年仍有機會進行更多定價，我們認為我們將需要根據成本的去向。而且我們在提價的方式上非常謹慎，我認為這是它一直堅持下去的重要原因。

Our next question comes from Brooke Roach of Goldman Sachs.

我們的下一個問題來自高盛的布魯克·羅奇。

Chip, I'd love to follow up on the conversation that we were just having in response to Matt's question, which is the health of the business in North America. And you mentioned several new drivers of expansion this year, including an expanded partnership at Target, more shelf space at key partners and also a new workwear line that you're launching this spring. I'd love to hear how you're thinking about the contribution to growth from some of these new initiatives versus like-for-like increases in your core and how you're thinking about that phasing throughout the year?

奇普，我很想跟進我們剛剛就馬特的問題進行的對話，即北美業務的健康狀況。你提到了今年擴張的幾個新驅動因素，包括在 Target 擴大合作夥伴關係，在主要合作夥伴處增加貨架空間，以及今年春天推出的新工作服系列。我很想听聽您如何看待這些新舉措對增長的貢獻與核心的同類增長，以及您如何看待全年的分階段？

Sure, Brooke. Well, I guess the first thing I would say is our business in the U.S. is very much core product driven. And that is a huge advantage when you think about some of the headwinds that we're facing, but the whole industry is facing from a supply chain standpoint, we're able -- and we are doing this. We are building inventory in the U.S. because most of what we sell here is core product. And so we can lean into building inventory to mitigate against future supply chain disruptions. And that is a huge advantage that we have, and we're leaning into that.

當然，布魯克。好吧，我想我要說的第一件事是我們在美國的業務非常受核心產品驅動。當你考慮到我們面臨的一些不利因素時，這是一個巨大的優勢，但從供應鏈的角度來看，整個行業都面臨著，我們有能力——而且我們正在這樣做。我們正在美國建立庫存，因為我們在這裡銷售的大部分產品都是核心產品。因此，我們可以通過建立庫存來緩解未來的供應鏈中斷。這是我們擁有的一個巨大優勢，我們正在努力實現這一點。

But the brand is really, really healthy. Through the pandemic actually, even before the pandemic, we were remapping our wholesale distribution to more premium accounts. That's when Target also came into play at that same point in time. And that started really, really small. That started with the 20 stores test on men's and we set at full potential, we thought that it had the opportunity to be 500 doors. We're in 500 doors today, and it is working so well, and we know that we are acquiring new consumers to Levi's by our presence in Target that the success of the business and the fact that we're driving new consumers to the brand with Target, we both concluded, let's expand this to another 300 doors. So that's been accretive to our business.

但這個品牌真的，真的很健康。實際上，通過大流行，甚至在大流行之前，我們就將批發分銷重新映射到更多優質賬戶。那時，Target 也在同一時間點發揮作用。這開始非常非常小。從 20 家男裝店測試開始，我們充分發揮潛力，我們認為它有機會成為 500 家門店。今天，我們有 500 家門店，而且運作良好，我們知道，我們正在通過在 Target 的存在為 Levi's 吸引新的消費者，業務的成功以及我們正在為品牌吸引新消費者的事實對於 Target，我們都得出結論，讓我們將其擴展到另外 300 扇門。所以這增加了我們的業務。

Our overall wholesale business is very, very healthy. Wholesale in general, as you all know, is also in a very, very good place right now. The brand is really strong, and we're investing in our own direct-to-consumer business, too. And that is also a big driver of growth for us. So in the U.S., when I joined the company 10-plus years ago, most of our doors in the U.S. were outlet doors. And the doors that we have been adding over the last couple of years have been mainline doors. We had no presence in many, many major markets with the mainline door. And now we are starting to build presence in several key markets around the country, but we have enormous opportunity for mainline.

我們的整體批發業務非常非常健康。眾所周知，總體而言，批發現在也處於非常非常好的地方。這個品牌非常強大，我們也在投資自己的直接面向消費者的業務。這也是我們增長的一大動力。所以在美國，當我 10 多年前加入公司時，我們在美國的大部分門都是直銷門。我們在過去幾年中添加的門一直是主線門。我們在許多有主線門的主要市場上都沒有存在。現在我們開始在全國幾個主要市場建立影響力，但我們在主線擁有巨大的機會。

And that's all in an effort to continue to elevate the brand here. If you travel the world and look at Levi's on a market-by-market basis, our business skews much more to Tier 3 product here in the United States than, for example, most of Europe, where it is a Tier 2 business at higher price points, higher gross margins and a very successful Tier 2 business both in our own doors as well as in the wholesale doors. So we know we've got opportunities to premiumize here, and that's been a big focal point for wholesale mapping here in the marketplace.

這一切都是為了繼續提升這裡的品牌。如果您環遊世界並逐個市場查看 Levi's，我們的業務在美國更偏向於第 3 級產品，而不是在歐洲大部分地區，在歐洲大部分地區是更高級別的第 2 級業務價格點、更高的毛利率和非常成功的二級業務，無論是在我們自己的門還是在批發門。所以我們知道我們有機會在這裡進行高端化，這一直是市場上批發地圖的一大焦點。

And we're seeing it in the business results. So success in Nordstrom, for example, we talked about expanding into Urban Outfitters to attract those younger consumers. So we're very optimistic about our business here in the U.S. The U.S. consumer is still in a very good place. And their personal balance sheets are still in a good place. Consumers put a lot of money in the bank during the pandemic, and most of it has not come out right yet. And consumer confidence in March was higher than in January and February and back to almost pre-pandemic levels. So we're very confident about our business. And as Harmit said, we think there's upside here in the U.S.

我們在業務成果中看到了這一點。例如，在 Nordstrom 取得成功後，我們談到了擴展到 Urban Outfitters 以吸引那些年輕消費者。所以我們對我們在美國的業務非常樂觀。美國消費者仍然處於非常好的位置。他們的個人資產負債表仍然處於良好狀態。大流行期間，消費者將大量資金存入銀行，但其中大部分尚未兌現。 3 月份的消費者信心高於 1 月和 2 月，幾乎回到了大流行前的水平。所以我們對我們的業務非常有信心。正如哈米特所說，我們認為美國有好處。

Our next question comes from Omar Saad of Evercore.

我們的下一個問題來自 Evercore 的 Omar Saad。

Another nice quarter, I agree. Maybe you guys could dive in a little bit deeper on the e-comm results, where that business is? How big of an opportunity do you think that could be? What are some of the key levers there, both here in the U.S. and internationally? And also maybe a little bit of an update on Beyond Yoga too would be nice, how that did through the holiday season?

另一個不錯的季度，我同意。也許你們可以更深入地了解電子商務結果，該業務在哪裡？你認為這有多大的機會？在美國和國際上，那裡的一些關鍵槓桿是什麼？也許還有一點關於超越瑜伽的更新也會很好，在假期期間是怎麼做到的？

Okay. I'll start with Beyond Yoga because it's -- I think that's pretty quick, and then I'll talk a little bit about our e-commerce business. We are largely through the heaviest lift of the integration, I would say it's gone really, really well. The team is terrific. The brand started out with their first full quarter as part of Levi Strauss, really strong. They beat their internal expectations or our internal expectations. The people on the team are great. We talked about culture fit when we announced the acquisition, it is clear that there is a very strong culture fit.

好的。我將從 Beyond Yoga 開始，因為它——我認為這很快，然後我會談談我們的電子商務業務。我們在很大程度上經歷了最沉重的整合，我想說它真的非常非常好。團隊很棒。該品牌從作為 Levi Strauss 的一部分開始的第一個完整季度開始，非常強大。他們超出了他們的內部期望或我們的內部期望。團隊裡的人都很棒。我們在宣布收購時談到了文化契合度，很明顯，文化契合度非常強。

And I would say this is our first acquisition in decades, right? This is going to be a good win-win. We're learning a lot from them. They're a small scrappy team and every single day they are on every single piece of the detail. We're learning things from them as they are learning things from us. And I think that's going to be -- that's going to play out real nicely. As you know, it's a premium position, premium-priced brand. It significantly adds to the total addressable market that we're competing in.

我想說這是我們幾十年來的第一次收購，對吧？這將是一個很好的雙贏。我們從他們身上學到了很多。他們是一個鬥志旺盛的小團隊，每一天他們都在處理每一個細節。我們向他們學習東西，就像他們向我們學習東西一樣。而且我認為這將是 - 這會很好地發揮作用。如您所知，這是一個高端定位、高價位的品牌。它顯著增加了我們正在競爭的整個潛在市場。

And our focus right now is beginning to build capability because we didn't buy this business because we thought it would be a $100 million business this year. We bought it because we believe it has the potential to be much, much bigger. We are -- we've built plans to that effect. And in June, when we're all together on June 1 for Investor Day, we'll reveal more of that. But I believe that this is going to be big for this company and really be a generator of meaningful growth over the next several years.

我們現在的重點是開始建立能力，因為我們沒有購買這項業務，因為我們認為它今年將是 1 億美元的業務。我們購買它是因為我們相信它有潛力變得更大、更大。我們是——我們已經為此制定了計劃。而在 6 月，當我們在 6 月 1 日投資者日聚在一起時，我們將透露更多信息。但我相信這對這家公司來說將是一件大事，並真正成為未來幾年有意義的增長的動力。

For e-commerce, our e-commerce business was up 13% versus Q1 '21, 37% ahead of Q1 2020. Our total digital ecosystem, which includes pure-play e-commerce and the dot-com for our wholesale customers was up 16%. It was about 1/4 of our business overall, up from 22% in '21 and from 14% pre-pandemic. So the business is clearly shifting to digital and to e-commerce. It's profitable. As you know, we turned to profit in the pandemic. And as this continues to scale, it's just going to become even more profitable over time. We're leveraging data science to try to really tailor the experience to the consumer.

對於電子商務，我們的電子商務業務與 21 年第一季度相比增長了 13%，比 2020 年第一季度增長了 37%。我們的整個數字生態系統（包括純電子商務和批發客戶的 dot-com）都在增長16%。它約占我們整體業務的 1/4，高於 21 年的 22% 和大流行前的 14%。因此，業務顯然正在轉向數字化和電子商務。這是有利可圖的。如您所知，我們在大流行中獲利。隨著這種規模的不斷擴大，隨著時間的推移，它只會變得更加有利可圖。我們正在利用數據科學來嘗試真正為消費者量身定制體驗。

But I've got to say, very honestly, I'm not super happy with 13% growth. I think we've got a lot more opportunity here on digital. And with its salience of our total business, I believe there is still significant upside ahead of us. We are focused on expanding the app. I think we talked about that in the prepared remarks. So we are going to expand the app to several more markets in this quarter. We're also focusing on expanding a number of the omnichannel capabilities that we built during the pandemic that are still largely just here in the U.S., we're now expanding those capabilities to Europe and other key markets around the world. So there's still a lot of work to be done here, a lot of heavy lifting ahead but I think it represents lots of still upside opportunity for us.

但我不得不說，老實說，我對 13% 的增長並不滿意。我認為我們在數字方面有更多的機會。鑑於它在我們整個業務中的重要性，我相信我們面前仍有很大的上升空間。我們專注於擴展應用程序。我想我們在準備好的評論中談到了這一點。因此，我們將在本季度將該應用程序擴展到更多市場。我們還專注於擴展我們在大流行期間建立的一些全渠道能力，這些能力仍然主要存在於美國，我們現在正在將這些能力擴展到歐洲和世界其他主要市場。所以這裡還有很多工作要做，還有很多繁重的工作，但我認為這對我們來說代表著很多上行機會。

Our next question comes from Bob Drbul of Guggenheim.

我們的下一個問題來自古根海姆的 Bob Drbul。

Just a couple of quick ones for me, if I could. I think the first one is you talked about the success that you're seeing, I think it was the Dallas store. Can you remind us just what the game plan is in terms of this year in terms of new store expansion? And I guess, just that store, what really is resonating to make it so successful so quickly? That's the first question.

如果可以的話，對我來說只是幾個快速的。我認為第一個是您談到了您所看到的成功，我認為是達拉斯商店。您能否提醒我們今年在新店擴張方面的遊戲計劃是什麼？我想，就那家商店來說，是什麼真正引起了人們的共鳴，讓它如此迅速地成功？這是第一個問題。

And then the second question I have is when you look at, I guess, your lower-priced offerings, and I'm thinking more Signature and Denizen, can you just talk about if you're seeing more interest in those brands from the U.S. consumer, sort of how you feel like you're positioned and or performing in both of those brands as well?

然後我的第二個問題是，當您看到您的低價產品時，我想更多的是 Signature 和 Denizen，您能否談談您是否對美國的這些品牌感興趣？消費者，你覺得你在這兩個品牌中的定位和/或表現如何？

Bob, I'll be quick because we've got about 5 folks after you, and we want to answer them. But I'll be quick. To your plans about opening mainline in the U.S., I think our plans are about 25-plus doors, and this is on the back of about 15, 20 that we open on the way to a 100. Dallas is successful because it's located in a great mall. And you just have the who's-who in the mall in terms of retail. It's a great-looking store. So location is good, very balanced assortment between men's and women's. In fact, I would say, women's slightly on the higher side because the business is on a roll. And I'd say great execution. So a combination of location, assortment and execution, making the difference for that.

Bob，我會很快，因為我們有大約 5 個人在你之後，我們想回答他們。但我會很快。關於你在美國開設主線的計劃，我認為我們的計劃是大約 25 多個門，這是在我們在通往 100 的路上開的大約 15、20 個門的後面。達拉斯是成功的，因為它位於很棒的購物中心。就零售而言，你只是在商場裡擁有名人錄。這是一家外觀精美的商店。所以位置很好，男女之間的分類非常平衡。事實上，我會說，女性的地位略高，因為生意興隆。我想說的是出色的執行力。因此，位置、分類和執行的結合，使這一點與眾不同。

On your question about our value brands, which also had a great quarter, I think for the value consumer, we offer the perfect opportunity, right? As -- if some of the consumers feel a pinch with inflation and want a great brand, they know where to go in Signature and Denizen. I think that bodes well, we don't necessarily have to mark down the red tab and this way we offer a good portfolio.

關於你關於我們的價值品牌的問題，我們也有一個很好的季度，我認為對於價值消費者來說，我們提供了完美的機會，對吧？就像——如果一些消費者對通貨膨脹感到壓力並想要一個偉大的品牌，他們知道在 Signature 和 Denizen 應該去哪裡。我認為這是個好兆頭，我們不一定要標記紅色標籤，這樣我們就可以提供良好的投資組合。

Our next question comes from Jay Sole of UBS.

我們的下一個問題來自瑞銀的 Jay Sole。

Great. My question is just about China. The COVID-related lockdowns there, how is it impacting your supply chain? You just talked of ships not being able to leave ports. I mean, is that something that's impacting the business? And is that something that's factored into the guidance?

偉大的。我的問題只是關於中國。那裡與 COVID 相關的封鎖，對您的供應鏈有何影響？你剛才談到船隻無法離開港口。我的意思是，這會影響業務嗎？那是指導中考慮的因素嗎？

Jay, the good thing about our supply chain is we've got truly a global footprint. We don't -- in fact, we don't manufacture a whole lot in China anymore. We've been slowly divesting manufacturing out of China, if you will, and kind of playing our chips elsewhere on the global map. So today, I think we're manufacturing somewhere in the neighborhood of 5% of our global production is in China, and most of it is staying in China. We've talked before that less than 1% of what we're bringing into this country into the U.S., less than 1% of it is coming from China.

傑伊，我們供應鏈的好處是我們真正擁有了全球足跡。我們沒有——事實上，我們不再在中國製造很多產品了。如果你願意的話，我們一直在慢慢地將製造業從中國撤出，並在全球地圖上的其他地方玩我們的籌碼。所以今天，我認為我們的製造大約有 5% 的全球產量在中國，而且大部分都留在中國。我們之前說過，我們帶入這個國家的不到 1% 的東西進入美國，其中不到 1% 來自中國。

So we've got -- we have strategic partnerships with many of our key vendors, many of those key vendors have multi-country footprint. So if a factory gets impacted by COVID, we can quickly ship. And this is where our scale really does help us. We can quickly move our pieces, our manufacturing to other places on the map. I would say it's not an easy thing to do, but the team has developed an expertise in doing it over the last 2 years. And we've been able to navigate through it reasonably well.

所以我們已經 - 我們與許多關鍵供應商建立了戰略合作夥伴關係，其中許多關鍵供應商都有多國足跡。因此，如果工廠受到 COVID 的影響，我們可以快速發貨。這就是我們的規模真正幫助我們的地方。我們可以快速將我們的零件和製造轉移到地圖上的其他地方。我會說這不是一件容易的事，但團隊在過去 2 年裡已經積累了這方面的專業知識。我們已經能夠很好地瀏覽它。

The other issue that we've been watching real closely is the impact that COVID shutdowns in China has had on ports there. And so far, what we're seeing and what my team is telling me is we're going to be able to navigate through this potentially rocky period over the next couple of weeks, okay. So we're not expecting any meaningful impact, whatsoever from COVID-related impacts to supply chain.

我們一直在密切關注的另一個問題是中國 COVID 關閉對那裡港口的影響。到目前為止，我們所看到的以及我的團隊告訴我的是，我們將能夠在接下來的幾週內度過這個潛在的艱難時期，好吧。因此，我們預計不會有任何有意義的影響，無論是與 COVID 相關的影響對供應鏈的影響。

It is impacting -- we've got, I think, roughly 60 or so doors closed in China right now. The team -- our team is based in Shanghai. They haven't been in the office now for a couple of weeks. They're all working remotely. It's still a pretty challenging environment from a commercial standpoint over there. But as you know, China is less than 3% of our total global business and still an opportunity for us, for sure, but it's not going to have really a consequential impact on our results in the coming quarter or for the year.

它正在產生影響——我認為，我們現在在中國已經關閉了大約 60 扇左右的門。團隊——我們的團隊在上海。他們已經有幾個星期沒來辦公室了。他們都在遠程工作。從那裡的商業角度來看，這仍然是一個非常具有挑戰性的環境。但如您所知，中國在我們全球業務總量中的佔比不到 3%，這對我們來說無疑是一個機遇，但這不會對我們下一季度或全年的業績產生真正的影響。

Our next question comes from Jim Duffy of Stifel.

我們的下一個問題來自 Stifel 的 Jim Duffy。

Another nice quarter, guys. I'm hoping if you could elaborate -- can you guys elaborate on the $60 million of missed demand? Is there an Omicron impact included in that calculation? Or is that principally a function of delayed receipts? And then I'm curious with inventories up 20% year-to-year, are there future expected impacts from product availability? And if so, when do you expect to get caught up?

伙計們，另一個不錯的季度。我希望你能詳細說明一下——你們能詳細說明一下錯過的 6000 萬美元的需求嗎？該計算中是否包含 Omicron 影響？或者這主要是延遲收據的功能？然後我很好奇庫存同比增長 20%，產品可用性對未來有預期影響嗎？如果是這樣，您預計什麼時候會趕上？

Yes. So Jim, the $60 million is a good calculation by experts. And we factor into account fill rates from normal. And it takes into account both receipt of goods as well as fulfillment of goods when we get it because we're trying to service demand. The $60 million is higher than $50 million, not because things are getting worse, only because in our quarter 1 includes December, which is a holiday period.

是的。所以吉姆，這 6000 萬美元是專家的一個很好的計算。我們會考慮正常的填充率。當我們收到貨物時，它會同時考慮到貨物的接收和履行情況，因為我們正在努力滿足需求。 6000 萬美元高於 5000 萬美元，並不是因為情況變得更糟，只是因為我們的第一季度包括 12 月，這是一個假期。

Our view is that supply chain-related issues continued through the year, but what we are seeing is an improvement in the [concession] in the West Coast. And so we think that will help us. Difficult to predict how much demand we will not be able to service. The good news is there is demand, and we continue to grow. And so I think that's the way I kind of look at it, Jim.

我們的觀點是，與供應鏈相關的問題全年都在持續，但我們看到的是西海岸的 [特許經營權] 有所改善。所以我們認為這會對我們有所幫助。很難預測我們將無法滿足多少需求。好消息是有需求，而且我們還在繼續增長。所以我認為這就是我看待它的方式，吉姆。

Our next question comes from Ike Boruchow of Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

Harmit, 2 questions for you. So understanding the rev guide maintained lower Europe, I think U.S. or America as you had planned, up high singles. I assume that has been moved up. Can you just tell us specifically now where you're targeting that geography?

哈米特，給你 2 個問題。因此，了解轉速指南保持較低的歐洲，我認為美國或美國正如您所計劃的那樣，提高單打。我假設已經向上移動了。你現在能具體告訴我們你的目標是那個地理位置嗎？

And then just the second question, I just want to make sure I understand. So you're reiterating the earnings in the revenue, but you're now calling for more deleverage. I just don't really understand why there's going to be more deleverage on expenses. I think you said incentive comp, but again, if you're not raising your outlook, I don't quite understand what the moving pieces are there. So any more help on the SG&A being a little higher would be helpful.

然後是第二個問題，我只是想確保我理解。所以你重申收入中的收益，但你現在呼籲更多地去槓桿化。我只是不明白為什麼會有更多的開支去槓桿化。我想你說的是激勵補償，但同樣，如果你沒有提高你的前景，我不太明白那裡有什麼推動因素。因此，對 SG&A 稍高一點的幫助會有所幫助。

Yes. Sure, Ike. So Ike, your first question related to -- yes. Okay. So in terms of the regional mix, so you're right. I think when we talked about the year, when we reported Q4, we had said the Americas high single, we said Europe high single. We said Asia, mid- to high teens. I think as we look at the year now, we think Americas is low double, the Europe, because of Russia and FX on a reported basis, largely flat. If you take it out of size single and Asia, probably high teens to about 20%. So that's the change in the regional outlook.

是的。當然，艾克。所以艾克，你的第一個問題是——是的。好的。所以就區域組合而言，你是對的。我想當我們談論這一年時，當我們報告 Q4 時，我們說美洲高單，我們說歐洲高單。我們說亞洲，中高青少年。我認為，當我們現在看這一年時，我們認為美洲是低兩倍，歐洲，因為俄羅斯和據報導的外匯，基本持平。如果你把它排除在單身和亞洲之外，可能會高到 20% 左右。這就是區域前景的變化。

To your question about the SG&A piece, the annual comp is really driven by constant currency. Our 3-year comp is driven by reported results. And so the FX headwind is something that doesn't affect the comp for the year. So our SG&A deleverage, slight, I'd say flat. I mean difficult to predict, but I'd say flat to slightly deleverage versus leverage is being offset by higher gross margins. And so that's why the EBIT margin is broadly similar to what we indicated. And that's why the EPS guidance largely is similar to what we had said about a quarter ago.

對於您關於 SG&A 的問題，年度薪酬實際上是由固定貨幣驅動的。我們的 3 年補償是由報告的結果驅動的。所以外匯逆風不會影響今年的比賽。所以我們的 SG&A 去槓桿，輕微的，我會說持平。我的意思是很難預測，但我想說的是，與槓桿相比，持平或略微去槓桿正被更高的毛利率所抵消。這就是為什麼息稅前利潤率與我們所指出的大致相似。這就是為什麼每股收益指引在很大程度上與我們大約一個季度前所說的相似。

And the thing I would tell you, and all of you have seen it, we are really focused on cost and management. So we're doing whatever we can to minimize that, to offset any inflation pressures. So that's something -- we've done a good job in the past, and we continue to do that as the year progress.

我要告訴你們的，你們所有人都已經看到了，我們真正專注於成本和管理。因此，我們正在盡我們所能將其最小化，以抵消任何通脹壓力。所以這就是——我們過去做得很好，隨著時間的推移，我們會繼續這樣做。

Control the controllables.

控制可控因素。

Our next question comes from Dana Telsey of Telsey Group.

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

Nice to see the continued progress. As you think about supply chain, I think the supply chain headwind was around $60 million in this quarter, up from $50 million the last quarter. How are you planning supply chain headwinds as we go through the year? And then just on marketing investment, which has increased, is that consistent through the year? And any new nuances on marketing that we should watch for that differentiates by quarter?

很高興看到持續的進步。當您考慮供應鏈時，我認為本季度的供應鏈逆風約為 6000 萬美元，高於上一季度的 5000 萬美元。在我們度過這一年之際，您如何規劃供應鏈逆風？然後僅就增加的營銷投資而言，這一年是否一致？我們應該注意的任何新的營銷細微差別會按季度區分嗎？

Yes. So Dana, on supply chain, it's difficult to predict. The good news is -- or the bad news is we continue to chase the $60 million higher than the $50 million is largely because of the holiday season being December. It's not that supply chain issues are getting worse. It's just that we are chasing. We're still chasing into shots, et cetera. And so we'll let you know as this progresses, but the good news is there's a lot of demand for our brands.

是的。所以達納，在供應鏈上，很難預測。好消息是——或者壞消息是我們繼續追逐高於 5000 萬美元的 6000 萬美元，這主要是因為 12 月是假日季節。並不是供應鏈問題越來越嚴重。只是我們在追逐。我們仍在追逐鏡頭，等等。因此，隨著情況的發展，我們會通知您，但好消息是對我們品牌的需求很大。

On A&P, you are right, A&P as a percentage ticked up about 1 point this quarter relative to last year. And we were -- last year, revenue was down, the year started on a tough note. But this year, I think advertising is 5.8% or something as a percentage. The rest of the year, think of advertising being largely similar to last year as a percentage. We think we'll end the year advertising as a percentage of revenue, about 7.7%, 7.8%, which is slightly higher than a year ago. That's largely because of Beyond Yoga. I mean we are -- we bought the brand, they're going to be spending on advertising, et cetera. But despite that, EBIT margins would be up year-over-year and that's our view.

在 A&P 上，你是對的，本季度 A&P 的百分比與去年相比上升了約 1 個百分點。我們 - 去年，收入下降，這一年開局艱難。但今年，我認為廣告是 5.8% 或某個百分比。今年餘下的時間，以百分比來看，廣告與去年大體相似。我們認為我們將在年底廣告收入佔收入的百分比約為 7.7%、7.8%，這比一年前略高。這主要是因為超越瑜伽。我的意思是我們——我們買了這個品牌，他們會在廣告上花錢，等等。但儘管如此，息稅前利潤率將同比上升，這是我們的看法。

Got it. And any change to CapEx to the $270 million? And then, Chip, anything on new wholesale accounts beyond what you're doing at Target and some of the others that we should be watching for?

知道了。 2.7 億美元的資本支出有什麼變化嗎？然後，Chip，除了你在 Target 和其他一些我們應該注意的事情之外，關於新批發賬戶的任何事情？

No change to CapEx, $270 million. I know we spent about $73 million, $74 million this quarter. So if you extrapolate that, it's slightly higher than the $270 million, but that's because Q1 is a bit of carryover from Q4. But CapEx maintaining at $270 million and then -- yes, no meaningful change.

資本支出沒有變化，為 2.7 億美元。我知道我們本季度花費了大約 7300 萬美元，7400 萬美元。因此，如果您推斷，它略高於 2.7 億美元，但這是因為第一季度是第四季度的一些結轉。但資本支出維持在 2.7 億美元，然後——是的，沒有有意義的變化。

Marketing guidance...

營銷指導...

Yes, 7.8%. Yes.

是的，7.8%。是的。

Next question.

下一個問題。

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

我們的下一個問題來自美國銀行的 Chris Nardone。

I think you've talked about mid-single-digit plus cost inflation for the year previously. Given the continued rise in cotton prices, is there any notable changes to this outlook? And if you could just talk about your contracting, how far ahead you book your cotton prices and how far that's locked in that would be really helpful on how that translates to your higher gross margin guidance.

我想你已經談到了前一年的中個位數加上成本通脹。鑑於棉花價格持續上漲，這一前景是否有任何顯著變化？如果你可以談論你的合同，你提前多遠預定棉花價格以及鎖定多遠，這對於如何轉化為更高的毛利率指導非常有幫助。

Great, Chris. First, welcome to the account. Second, I was wondering who would ask the cotton question too. Thank you for asking that. Cotton is locked in for the year. And I think the increase in COGS year-over-year on a full year basis is about 5%. We effectively either price for it or absorbed some of that through cost discipline, but largely, we have price for it.

太好了，克里斯。首先，歡迎使用帳戶。其次，我想知道誰也會問棉花問題。謝謝你問這個。棉花被鎖定了一年。我認為 COGS 全年同比增長約為 5%。我們有效地為它定價或通過成本紀律吸收其中的一些，但在很大程度上，我們有它的價格。

Cotton, as you look at 2023, cotton is higher than what we locked in. We're in the process of negotiating cotton with our vendors, and it will be a win-win deal for both sides. The futures on cotton, if you look at it today, start coming down in October of 2022. And that translates over the year. So I think more to come, but generally we've done an effective job maintaining margins, both gross margin and EBIT margins despite the uptick in cotton this year and so -- and historically, so expect that from us over time.

棉花，你看 2023 年，棉花比我們鎖定的要高。我們正在與我們的供應商談判棉花，這對雙方來說都是雙贏的交易。棉花期貨，如果你今天看的話，從 2022 年 10 月開始下跌。這會在一年中轉化。所以我認為未來還會有更多，但總的來說，儘管今年棉花價格上漲等等，但總的來說，我們在維持毛利率和息稅前利潤方面做得很有效——而且從歷史上看，隨著時間的推移，我們期待著這一點。

Is that it, Latif? I think that's the queue, right?

是嗎，拉蒂夫？我想那是隊列，對吧？

It is, sir.

是的，先生。

All right. Great. So I will wrap it here. I want to thank everyone for joining us. Remind everyone that we do plan to hold Investor Day in New York City at our showrooms on June 1, and we're looking forward to seeing everybody then. Thanks very much for attending and for the great questions, and we'll see you all in person very soon. Looking forward to it. Bye-bye.

好的。偉大的。所以我會把它包在這裡。我要感謝大家加入我們。提醒大家，我們確實計劃於 6 月 1 日在我們的展廳在紐約市舉辦投資者日，我們期待屆時與大家見面。非常感謝您的出席和提出的好問題，我們很快就會親自見到你們。期待它。再見。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。