Lululemon Athletica Inc (LULU) 2017 Q1 法說會逐字稿

Thank you for standing by.

謝謝你的支持。

This is the conference operator, and welcome to the Lululemon Athletica First Quarter 2017 Conference Call.

這是會議運營商，歡迎參加 Lululemon Athletica 2017 年第一季度電話會議。

(Operator Instructions) I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations, for lululemon athletica.

（操作員說明）我現在想將會議轉交給 lululemon 的投資者關係副總裁 Howard Tubin。

Please go ahead.

請繼續。

Thank you, and good afternoon.

謝謝，下午好。

Welcome to lululemon's first quarter earnings conference call.

歡迎來到 lululemon 的第一季度財報電話會議。

Joining me today to talk about our results are: Laurent Potdevin, CEO; Stuart Haselden, COO.

今天和我一起談論我們的結果的是： Laurent Potdevin，首席執行官；斯圖爾特·哈塞爾登，首席運營官。

Sun Choe, SVP of Global Merchandising, will also be available during the Q&A portion of the call.

全球營銷高級副總裁 Sun Choe 也將在電話的問答環節中提供。

Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecasts of certain aspects of the company's future.

在開始之前，我想藉此機會提醒您，我們今天的講話將包括前瞻性陳述，反映管理層目前對公司未來某些方面的預測。

These statements are based on current information, which we have assessed, but which is, by nature, dynamic and subject to rapid and even abrupt changes.

這些陳述基於我們已經評估過的當前信息，但這些信息本質上是動態的，並且會發生快速甚至突然的變化。

Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with the company's business.

由於與公司業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中包含或暗示的結果存在重大差異。

Factors that could cause these results to differ materially are set forth in the company's filings with the SEC, including our Annual Report on Form 10-K and our quarterly reports on Form 10-Q.

公司向美國證券交易委員會提交的文件中列出了可能導致這些結果產生重大差異的因素，包括我們的 10-K 表格年度報告和 10-Q 表格季度報告。

Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

我們在本次電話會議上所做的任何前瞻性陳述均基於截至今天的假設，我們不承擔因新信息或未來事件而更新這些陳述的義務。

During this call, we will present both GAAP and non-GAAP financial measures.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。

A reconciliation of GAAP to non-GAAP measures is included in our Annual Report on Form 10-K and in today's earnings press release.

GAAP 與非 GAAP 措施的對賬包含在我們的 10-K 表格年度報告和今天的收益新聞稿中。

The press release and accompanying Annual Report on Form 10-K are available under the Investors Section of our website at www.lululemon.com.

新聞稿和隨附的 10-K 表格年度報告可在我們網站 www.lululemon.com 的投資者部分獲取。

Today's call is scheduled for 1 hour.

今天的通話時間為 1 小時。

(Operator Instructions)

（操作員說明）

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

現在我想把電話轉給 Laurent。

Thank you, Howard, and good afternoon, everyone.

謝謝霍華德，大家下午好。

On our year-end call, we reviewed our longer-term vision and 2020 plan to double our revenue to $4 billion and more than double earnings.

在年終電話會議上，我們回顧了我們的長期願景和 2020 年計劃，將我們的收入翻一番，達到 40 億美元，收益翻一番以上。

Today, I will focus specifically on our first quarter business trends, which were positively impacted by the actions we took to build momentum early in the quarter.

今天，我將特別關注我們第一季度的業務趨勢，這些趨勢受到我們在本季度初為建立勢頭而採取的行動的積極影響。

I will then touch on Q2 milestones that inspired our guests, from our first global brand amplification to our most innovative and integrated product launch to date.

然後，我將談到激發我們客人靈感的第二季度里程碑，從我們的第一個全球品牌擴張到我們迄今為止最具創新性和綜合性的產品發布。

Stuart will review our financials and provide Q2 and full year guidance.

斯圖爾特將審查我們的財務狀況並提供第二季度和全年指導。

We'll then take your questions.

然後我們會回答你的問題。

Let me kick off the call by sharing our first ever global brand campaign, This Is Yoga.

讓我通過分享我們的第一個全球品牌活動“這就是瑜伽”來啟動電話會議。

Through recontextualizing how the world sees yoga culture, we articulate the core of our brand and what defines and differentiates lululemon.

通過重新審視世界對瑜伽文化的看法，我們闡明了我們品牌的核心以及 lululemon 的定義和區別。

The internal launch created an unprecedented energy and excitement across our employees, our educators and our ambassadors.

內部發佈在我們的員工、我們的教育工作者和我們的大使中創造了前所未有的活力和興奮。

And on May 15, we took yoga off the mat and into real life, sharing the power of practice with the world, reconnecting loyal guests with who we are and authentically reaching millions of new guests.

5 月 15 日，我們將瑜伽從墊子上帶入現實生活，與世界分享練習的力量，將忠實的客人與我們重新聯繫起來，並真正接觸到數百萬的新客人。

We are proud of how powerfully this campaign has resonated with influential audiences around the world, creating 240 million global impressions and over 26 million views of the anthem video in its first 2 weeks.

我們為這項活動引起了全球有影響力的觀眾的強烈共鳴感到自豪，在最初的兩週內創造了 2.4 億次全球印象和超過 2600 萬次觀看國歌視頻。

The launch of This Is Yoga is just the beginning of our global brand amplification as we connect with millions of new guests in key markets around the globe.

This Is Yoga 的推出只是我們全球品牌擴張的開始，因為我們與全球主要市場的數百萬新客人建立了聯繫。

Before sharing our first quarter highlights, I'll update you on our decision to evolve ivivva to an e-commerce focused strategy.

在分享我們第一季度的亮點之前，我將向您介紹我們將 ivivva 發展為以電子商務為重點的戰略的決定。

This new streamlined model, with 8 stores in key ivivva communities across North America, will enable us to continue serving our young ivivva guests who have come to know and love the brand so much.

這種全新的流線型模式在北美主要 ivivva 社區擁有 8 家門店，這將使我們能夠繼續為那些非常了解和喜愛該品牌的年輕 ivivva 客人提供服務。

This decision will also be accretive to productivity, comps and earnings.

這一決定也將增加生產力、薪酬和收益。

By August 20 of this year, we will close all but 8 of our ivivva locations, and Stuart will walk you through the financial impact for the year.

到今年 8 月 20 日，我們將關閉除 8 個 ivivva 以外的所有門店，Stuart 將帶您了解本年度的財務影響。

While I know this is the best path forward for the future of our business, it's a very difficult decision due to its impact on our people, who we are deeply committed to supporting with integrity and compassion throughout this transition.

雖然我知道這是我們業務未來的最佳前進道路，但由於它對我們的員工的影響，這是一個非常困難的決定，我們致力於在整個過渡過程中以正直和同情的態度支持他們。

I am so grateful for the passion and dedication of our people, the brand they've created and the impact ivivva will continue to have on so many communities of active girls.

我非常感謝我們員工的熱情和奉獻精神、他們創建的品牌以及 ivivva 將繼續對眾多活躍女孩社區產生的影響。

I'll now shift to our Q1 results.

我現在將轉向我們的第一季度業績。

We delivered revenue of $520 million, a normalized gross margin increase of 210 basis points and an adjusted EPS of $0.32.

我們實現了 5.2 億美元的收入，標準化毛利率增加了 210 個基點，調整後的每股收益為 0.32 美元。

Our adjusted EPS was better than our guidance and increased 7% over last year.

我們調整後的每股收益好於我們的指引，比去年增長了 7%。

Comps declined 1% in total with stores down 1% and e-commerce flat.

Comps 總體下降 1%，商店下降 1%，電子商務持平。

Our normalized EPS exceeded our expectations, driven predominantly by stronger revenue and product margins as we continue to benefit from the evolution of our supply chain.

我們的正常化每股收益超出了我們的預期，主要是由於我們繼續受益於供應鏈的發展，收入和產品利潤率的增長。

Our inventory remains well controlled, up 6% at the end of Q1 and in line with our sales growth.

我們的庫存仍然得到很好的控制，在第一季度末增長了 6%，與我們的銷售增長一致。

The actions we've taken to build momentum have had an immediate impact on our performance.

我們為建立勢頭而採取的行動對我們的業績產生了直接影響。

This positive trend has continued and accelerated as we enter Q2.

隨著我們進入第二季度，這種積極趨勢繼續並加速。

And as we look to the second quarter, we are seeing robust performance across all channels and categories with combined comps up in the low to mid-single digit and digital back to a double-digit comp trend.

當我們展望第二季度時，我們看到所有渠道和類別的強勁表現，組合在中低個位數和數字回到兩位數的趨勢。

Turning now to some specific first quarter highlights.

現在轉向一些具體的第一季度亮點。

Let me share how the strategies we outlined on our last call have powerfully and positively driven our performance.

讓我分享一下我們在上次電話會議中概述的策略如何有力而積極地推動了我們的業績。

Starting with women's.

從女裝開始。

Our stronger assortment, combined with newness and functional innovation delivered a significant comp improvement.

我們更強大的產品組合，加上新穎性和功能創新，帶來了顯著的組合改進。

Towards the end of the first quarter, the cadence of new product launches and fabric innovation created excitement with guests and deepened our connection with the runners in our collective.

接近第一季度末，新產品發布和麵料創新的節奏讓客人興奮不已，並加深了我們與集體跑步者的聯繫。

Created in our new top performing Nulux fabric, Fast And Free brought our Naked Sensation across an extended range, including a tight, a crop and a bra.

Fast And Free 採用我們全新的頂級 Nulux 面料製成，將我們的 Naked Sensation 擴展到更廣泛的範圍，包括緊身衣、露臍裝和文胸。

Guest response to Nulux overall continues to surpass our expectations and contributes significantly to our overall women's bottoms comp in Q1.

客人對 Nulux 的整體反應繼續超出我們的預期，並為我們在第一季度的整體女裝褲裝做出了重大貢獻。

And I am thrilled to share that together with new elite ambassador, Kerri Walsh Jennings, the 3-time Olympic Gold beach volleyball player and a truly inspirational role model both on and off the court, we launched our Mind Over Miles capsule.

我很高興能與新的精英大使 Kerri Walsh Jennings、3 次奧運會金牌沙灘排球運動員以及場上場下真正鼓舞人心的榜樣一起分享這一點，我們推出了 Mind Over Miles 膠囊。

Featured in white, this collection was designed for guests who prefer [a hugged in] sensation, and was one of the top 5 selling style colors of this quarter.

該系列以白色為特色，專為喜歡[擁抱]感覺的客人設計，是本季度最暢銷的 5 種顏色之一。

This collection is catered to our guests' growing demand for our Engineered Sensations across all product categories.

這個系列迎合了我們的客人對我們所有產品類別的工程感覺不斷增長的需求。

Shifting to digital.

轉向數字化。

Since April 1, we've doubled down on our digital strategies and our teams have been laser-focused on delivering a significantly enhanced digital experience.

自 4 月 1 日以來，我們已經加倍實施我們的數字戰略，我們的團隊一直專注於提供顯著增強的數字體驗。

As I'm sure you've all noticed, the infusion of energy, movement and fun in how we've brought product to life, has exceptionally enhanced our guest experience and delivered an increased engagement and performance.

我相信你們都注意到了，在我們將產品帶入生活的過程中註入了能量、運動和樂趣，極大地增強了我們的客戶體驗，並提高了參與度和績效。

Having just passed 2 million subscribers, the new creative approach has created our highest ever engagement across men's and women's, and delivered increased conversion.

新的創意方法剛剛超過 200 萬訂閱者，創造了我們有史以來最高的男性和女性參與度，並提高了轉化率。

The clear and decisive actions we've made to inspire our guests and drive our digital performance is a compelling validation of the global runway ahead of us.

我們為激勵我們的客人並推動我們的數字表現而採取的明確而果斷的行動是對我們面前的全球跑道的有力驗證。

Looking at men's.

看著男裝。

We delivered a high single-digit comp this quarter against an exceptional 21% comparison last year.

我們在本季度實現了高個位數的業績，而去年的業績則為 21%。

Bottoms, often our male guest's entry to brand, remains a pillar of this business, comping up 20% in Q1.

下裝，通常是我們男性客人進入品牌的渠道，仍然是該業務的支柱，在第一季度佔 20%。

Our performance in men's tops accelerated as the quarter progressed, driven by the successful launch of the Somatic series training tops in our Intersec Fabric.

隨著我們在 Intersec Fabric 中成功推出 Somatic 系列訓練上衣，隨著本季度的進展，我們在男士上衣方面的表現加速。

This acceleration has contributed to an overall improvement in the men's comp, trending in the low double-digits.

這種加速有助於男子比賽的整體改善，趨勢是低兩位數。

In Q2, key innovation launches, including light Metal Vent Tech Surge and pack and dash run tops will extend 2 of our top-performing franchises as we continue to solve for guests' functional demand.

在第二季度，隨著我們繼續滿足客人的功能需求，包括輕金屬排氣技術浪湧和包裝和短跑上衣在內的關鍵創新產品將擴展我們表現最好的 2 個特許經營權。

Quarter-after-quarter, our performance gets us closer to realizing the full scale of our $1 billion plus opportunity in men's.

一個季度一個季度，我們的表現讓我們更接近於實現我們在男裝領域的 10 億美元以上機會的全部規模。

While men account for 20% of our total business, they are just under 30% of all new guests.

雖然男性占我們總業務的 20%，但他們僅佔所有新客人的 30%。

This will only increase as we strategically focus on guest acquisition through colocated stores, curated e-commerce experiences and by leveraging This is Yoga, where ambassadors like Jian Pablico and his practice of nonviolence, and London grime artist P Money and his practice of breath authentically connect with the broader millennial male audience.

這只會增加，因為我們戰略性地專注於通過託管商店、策劃電子商務體驗和利用 This is Yoga 來吸引客戶，Jian Pablico 等大使及其非暴力實踐，以及倫敦 grime 藝術家 P Money 和他的呼吸實踐真實地與更廣泛的千禧一代男性觀眾建立聯繫。

Now turning to international, another exciting growth strategy and $1 billion dollar opportunity.

現在轉向國際，另一個令人興奮的增長戰略和 10 億美元的機會。

In response to market demand, we are accelerating our expansion with 50 new store openings this year.

為響應市場需求，我們正在加速擴張，今年新開 50 家門店。

Near-term, Asia holds the most significant growth potential.

近期，亞洲擁有最顯著的增長潛力。

Building on the energy of our Harajuku location, we've seen exceptional performance at our new store within the stunning new Ginza Six complex in Tokyo.

憑藉我們原宿店的活力，我們在東京令人驚嘆的新銀座六號綜合大樓內的新店看到了非凡的表現。

The guest response to our exclusive Tokyo white-on-white reflective capsule reflects the strong guest affinity of the brand in one of the most influential markets in the world.

客人對我們獨家的東京白色反光膠囊的反應反映了該品牌在世界上最具影響力的市場之一中對客人的強烈親和力。

Building on the brand's performance and resonance in China, we are accelerating our densification strategy in Tier 1 cities, with the newest opening in Xintiandi, Shanghai, a vibrant iconic neighborhood destination for locals and visitors alike.

憑藉該品牌在中國的表現和共鳴，我們正在加快在一線城市的密集化戰略，最新開業的上海新天地是當地人和遊客都喜歡的充滿活力的標誌性社區目的地。

In their first few months of opening, our China stores are outperforming all store metrics, currently tracking to over $1,600 in annual sales per square foot.

在開業的前幾個月，我們的中國門店的表現優於所有門店指標，目前每平方英尺的年銷售額超過 1,600 美元。

Chinese millennials are some of the most digitally engaged consumers in the world, a behavior we are experiencing online with our Tmall business having doubled over the last 3 quarters.

中國千禧一代是世界上數字化參與度最高的消費者之一，這是我們在網上體驗到的一種行為，我們的天貓業務在過去三個季度翻了一番。

The collective impact of our physical stores and digital presence is driving our impressive performance in this key market.

我們的實體店和數字業務的集體影響正在推動我們在這個關鍵市場上的出色表現。

In its second year and more than doubling in size, our Unroll China event sold out within hours.

在第二年，規模擴大了一倍以上，我們的 Unroll China 活動在數小時內售罄。

It kicked off May 6 at the Shanghai concert hall, with over 1,200 yogis experiencing the power of practice.

它於 5 月 6 日在上海音樂廳拉開帷幕，超過 1,200 名瑜伽士體驗了修行的力量。

Enhanced by live streaming, it's traveling across 6 cities with over 10,000 participants.

通過實時流媒體增強，它跨越 6 個城市，超過 10,000 名參與者。

Unroll China is a fantastic platform as we continue to build brand awareness across China.

隨著我們繼續在中國建立品牌知名度，Unroll China 是一個絕佳的平台。

And our expansion this year continues across key cities, such as Chengdu and Guangzhou, as well as additional locations in Shanghai and Beijing.

我們今年的擴張繼續在成都和廣州等主要城市以及上海和北京的其他地點進行。

Turning to Europe.

轉向歐洲。

London remains our key focus, delivering 50% sales growth on a constant currency basis year-over-year.

倫敦仍然是我們的重點，按固定匯率計算，銷售額同比增長 50%。

Outside of London, we opened our second shop-in-shop in Dublin's Brown Thomas department store.

在倫敦以外，我們在都柏林的布朗托馬斯百貨公司開設了第二家店中店。

Fueled by strong guest demand, the opening and performance has been exceptional, tracking at $1,600 per square foot.

在強勁的客人需求的推動下，開業和表現都非常出色，跟踪價格為每平方英尺 1,600 美元。

In North America, we continue to invest to realize the solid growth opportunities ahead of us, maximizing our potential through tailored and agile store format and leveraging our omnichannel tools that have greatly exceeded expectations with guests.

在北美，我們繼續投資以實現我們面前的穩固增長機會，通過量身定制和靈活的商店形式最大限度地發揮我們的潛力，並利用我們大大超出客人預期的全渠道工具。

We are driving double-digit square footage growth and on track to open 30 stores in key destination cities, including New York, where we are opening in an iconic space at 597 Fifth Avenue across from the Rockefeller Center as well as Las Vegas, Los Angeles and Boston.

我們正在推動兩位數的平方英尺增長，並有望在包括紐約在內的主要目的地城市開設 30 家門店，我們將在紐約洛克菲勒中心對面的第五大道 597 號以及洛杉磯拉斯維加斯的標誌性空間開業和波士頓。

While early into the second quarter, we are off to a great start with many exciting moments to come that will continue to drive our performance.

進入第二季度初期，我們有了一個良好的開端，許多激動人心的時刻將繼續推動我們的表現。

With a clear mandate to accelerate momentum and drive growth, a highly collaborative and creative team is delivering quantifiable impact and is demonstrating what can quickly be achieved when we unite behind a shared vision.

一個高度協作和富有創造力的團隊肩負著加快發展勢頭和推動增長的明確使命，正在產生可量化的影響，並展示了當我們團結在一個共同的願景背後時可以迅速實現的目標。

And the results speak for themselves.

結果不言自明。

In a short period of time, the team has delivered 2 new releases of our website, an enriched experience for iconic product launches such as our category disrupting Enlite Bra, bold and curated product experiences to align with This is Yoga campaign, and highly targeted and timely guest engagement such as our summer seasonal focus on women's shorts, which drove a 39% comp in the U.S.

在很短的時間內，該團隊發布了我們網站的 2 個新版本，為標誌性產品發布提供了豐富的體驗，例如我們顛覆 Enlite 文胸的類別，與 This is Yoga 活動保持一致的大膽和精心策劃的產品體驗，以及具有高度針對性和及時的客人參與，例如我們對女性短褲的夏季季節性關注，這在美國推動了 39% 的業績。

Collectively, this work is meaningfully and sustainably impacting our performance.

總的來說，這項工作對我們的績效產生了有意義且可持續的影響。

The scale of our potential in digital is crystal clear, and I've never felt more energized by our ability to realize a billion dollar plus opportunity in front of us.

我們在數字領域的潛力是非常清晰的，而且我從未對我們能夠在我們面前實現十億美元以上的機會感到更加充滿活力。

Last but not least, I want to focus on innovation.

最後但同樣重要的是，我想專注於創新。

Starting with our newest whitespace launch, our category-defining bra, Enlite.

從我們最新推出的 whitespace 文胸開始，我們定義了類別的文胸 Enlite。

Over 2 years in its creation, our industry disrupting research and development team created an innovative technology, enabling women to experience comfort, performance and aesthetics when selecting a run bra.

經過 2 年多的創作，我們顛覆行業的研發團隊創造了一項創新技術，讓女性在選擇跑步文胸時能夠體驗到舒適、性能和美感。

Managing harmonious movement across the whole body, Enlite provides a freeing sensation, superior comfort and 0 distractions.

Enlite 管理整個身體的和諧運動，提供自由的感覺、卓越的舒適度和 0 分心。

Made from our proprietary Ultralu fabric in our signature barely there feeling, it provides optimal stretch, recovery and breathability.

它由我們專有的 Ultralu 面料製成，具有我們標誌性的幾乎沒有感覺，提供最佳的彈性、恢復性和透氣性。

We are now at a (inaudible) position in the bra category as we are in women's bottoms, delivering the most innovative and demanded product in the 2 categories that define the women's athletic market.

我們現在在文胸類別中處於（聽不清）位置，就像我們在女性底部一樣，在定義女性運動市場的兩個類別中提供最具創新性和需求的產品。

Initial performance and reaction from our guests and educators has been exceptional, with Enlite receiving over 190 million media impressions, exceeding plan by 300% and instantly becoming our #1 selling bra.

我們的客人和教育工作者的初始表現和反應非常出色，Enlite 獲得了超過 1.9 億次媒體印象，超出計劃 300%，並立即成為我們銷量第一的文胸。

In just a few weeks, Enlite has created a significant halo across the category.

在短短幾週內，Enlite 就在該類別中創造了一個重要的光環。

And by balancing the overall assortment with a high support, molded fit option, our initial findings suggest that a significant number of guests choosing Enlite have not bought a bra from us before, creating the opportunity for the Enlite platform to improve our conversion by reaching a broader range of guests.

通過平衡整體分類與高支撐、模壓合身選項，我們的初步調查結果表明，大量選擇 Enlite 的客人以前從未從我們這裡購買過文胸，這為 Enlite 平台創造了機會，通過達到更廣泛的客人。

In Q3, we will bring to market our newest fabric innovation, building on our unique leadership position in yarn development and raw material design.

在第三季度，我們將基於我們在紗線開發和原材料設計方面的獨特領導地位，將我們最新的面料創新推向市場。

I know this newest addition to our Engineered Sensations range will create an even deeper connection with new and existing guests, who live for high sweat and high-intensity workouts.

我知道我們的 Engineered Sensations 系列的最新產品將與新老客人建立更深層次的聯繫，他們生活在高強度的汗水和高強度鍛煉中。

Our whitespace team will continue to innovate the science of engineered sensation and the future of how people want to feel as they live a life they love.

我們的空白團隊將繼續創新工程感覺科學以及人們在過著自己喜歡的生活時想要感受的未來。

Before passing over to Stuart, I'd like to take a moment to share some great updates to our Board of Directors and executive team.

在轉給 Stuart 之前，我想花點時間與我們的董事會和執行團隊分享一些重要的更新。

First, a warm welcome to our new Co-Chairman, Glenn Murphy.

首先，熱烈歡迎我們的新聯合主席 Glenn Murphy。

I look forward to working with Glenn and know that his deep knowledge and experience will have a substantial impact on the future of the business.

我期待與 Glenn 合作，並且知道他深厚的知識和經驗將對企業的未來產生重大影響。

Next, I'm delighted to recognize Stuart Haselden, who is taking on the newly created role of Chief Operating Officer.

接下來，我很高興認識 Stuart Haselden，他將擔任新設立的首席運營官一職。

Since joining, he has led with clarity and confidence.

自加入以來，他一直以清晰和自信的方式領導。

And thanks to his work, we have the foundation and operational excellence in place to strive as we realize the significant growth opportunities ahead of us.

多虧了他的工作，我們擁有了基礎和卓越的運營能力，在我們意識到擺在我們面前的重大增長機會時，我們可以努力奮鬥。

I'm also pleased to share that Sun Choe, our SVP, Merchandising, is now reporting directly to me.

我也很高興地告訴大家，我們的銷售高級副總裁 Sun Choe 現在直接向我匯報。

This ensures that our Creative Director, Lee Holman, and his team has the space to focus on design, while our merchants can effectively drive the design vision into profitable growth.

這確保了我們的創意總監 Lee Holman 和他的團隊有空間專注於設計，而我們的商家可以有效地將設計願景轉化為盈利增長。

We're happy to have Sun on the call with us today, so do feel free to direct questions her way also.

我們很高興 Sun 今天與我們通話，所以也請隨時以她的方式直接提問。

As I look to our second quarter and the rest of 2017, I continue to see the unprecedented opportunity for lululemon.

展望第二季度和 2017 年剩餘時間，我繼續看到 lululemon 前所未有的機遇。

From our unique culture, our cadence of product innovation, designing the future of guest experiences, combined with This Is Yoga amplifying who we are globally, we are more powerfully positioned than ever to deliver long-term profitable growth as the leading global brand of an active, mindful lifestyle.

憑藉我們獨特的文化、我們的產品創新節奏、設計客戶體驗的未來，再加上這就是瑜伽在全球範圍內擴大我們的身份，我們比以往任何時候都更有能力實現長期盈利增長，成為領先的全球品牌積極、有意識的生活方式。

Now, over to Stuart.

現在，轉到斯圖爾特。

Thank you, Laurent.

謝謝你，勞倫特。

After a slow start to Q1, we saw business accelerate in the latter part of the quarter and we're pleased to see this trend now extending into Q2, with an even more pronounced improvement in the e-commerce trend that I'll discuss shortly.

在第一季度開局緩慢之後，我們看到該季度後半段業務加速發展，我們很高興看到這一趨勢現在延伸到第二季度，電子商務趨勢的改善更加明顯，我將在稍後討論.

We also saw strong product margin performance in Q1 that exceeded prior estimates and enabled an earnings outcome well above our guidance.

我們還在第一季度看到了強勁的產品利潤率表現，超出了先前的預期，並使收益結果遠高於我們的預期。

This reflects the ongoing benefits of our supply chain investments.

這反映了我們供應鏈投資的持續收益。

Before reviewing the details of the first quarter, I'd like to offer some commentary on the impact of our decision to close our ivivva stores.

在回顧第一季度的細節之前，我想對我們決定關閉 ivivva 商店的影響發表一些評論。

I'll then review the details of our first quarter results and provide our updated outlook for the full year 2017 and also the second quarter.

然後，我將回顧我們第一季度業績的詳細信息，並提供我們對 2017 年全年和第二季度的最新展望。

As Laurent mentioned, we plan to reposition ivivva as a primarily e-commerce focused business, with a select number of stores continuing to operate in key communities across North America.

正如 Laurent 所提到的，我們計劃將 ivivva 重新定位為主要以電子商務為重點的業務，並在北美的主要社區繼續經營一些精選商店。

We plan to close approximately 40 of our 55 ivivva branded stores and expect to convert about half of the remaining locations to lululemon stores.

我們計劃關閉 55 家 ivivva 品牌商店中的約 40 家，並預計將剩餘的約一半地點轉換為 lululemon 商店。

We'll also close our 16 ivivva branded showrooms and other temporary locations, and will streamline its dedicated support infrastructure.

我們還將關閉我們的 16 個 ivivva 品牌陳列室和其他臨時地點，並將精簡其專用支持基礎設施。

The store closures and restructuring will be substantially complete by the end of the third quarter of fiscal 2017.

門店關閉和重組將在 2017 財年第三季度末基本完成。

In connection with this restructuring plan, we expect to recognize pretax costs of between $50 million and $60 million in fiscal 2017, of which $17.7 million was recognized in Q1.

與這一重組計劃相關，我們預計 2017 財年將確認 5000 萬美元至 6000 萬美元的稅前成本，其中 1770 萬美元在第一季度確認。

The costs are composed primarily of asset impairments, accelerated depreciation, lease termination costs and a smaller portion for inventory provisions and severance.

成本主要包括資產減值、加速折舊、租賃終止成本以及一小部分存貨準備金和遣散費。

Now turning to the details of Q1.

現在轉向第一季度的細節。

Total net revenue rose 5% to $520.3 million, with the increase in revenue resulting from the following: an increase in square footage growth of 10% versus last year, driven by the addition of 38 net new company operated stores since Q1 of 2016, 22 net new stores in the U.S., 3 stores in Canada, 5 in Europe and 8 in Asia.

總淨收入增長 5% 至 5.203 億美元，收入增長的原因如下： 面積比去年增長 10%，原因是自 2016 年第一季度以來新增了 38 家公司經營的淨門店，22淨新店在美國，加拿大 3 家，歐洲 5 家，亞洲 8 家。

This was offset by a total constant dollar comparable sales decline of 1%, comprised of a bricks-and-mortar comp store sales decline of 1% and an e-commerce comp that was flat.

這被總固定美元可比銷售額下降 1% 所抵消，其中包括實體店銷售額下降 1% 和電子商務銷售額持平。

The impact of foreign exchange decreased revenues by $1.5 million or 0.3%.

外彙的影響使收入減少了 150 萬美元或 0.3%。

During the first quarter, we opened 5 net new company operated stores, 2 in the U.S., 2 in Asia and 1 in Europe.

第一季度，我們新開了 5 家公司經營的新店，其中 2 家在美國，2 家在亞洲，1 家在歐洲。

We ended the quarter with 411 total stores versus 373 a year ago and 352 stores in our comp base: 57 of those in Canada, 258 in the U.S, 26 in Australia and New Zealand, 7 in Europe and 4 in Asia.

在本季度末，我們的門店總數為 411 家，而一年前為 373 家，我們的比較基地有 352 家門店：其中加拿大有 57 家，美國有 258 家，澳大利亞和新西蘭有 26 家，歐洲有 7 家，亞洲有 4 家。

At the end of Q1, we also had a total of 48 showrooms in operation, 30 in North America and 18 internationally.

在第一季度末，我們共有 48 個展廳在運營，其中北美有 30 個，國際有 18 個。

Revenues from company operated stores totaled $379.1 million or 72.9% of total revenue compared to $358.7 million in the first quarter of 2016 or 72.4% of total revenue.

公司經營商店的收入總計 3.791 億美元，佔總收入的 72.9%，而 2016 年第一季度為 3.587 億美元，佔總收入的 72.4%。

Revenues from our digital channel totaled $97.2 million or 18.7% of total revenue compared to 19.7% of total revenue in the first quarter of last year.

我們數字渠道的收入總計 9720 萬美元，佔總收入的 18.7%，而去年第一季度佔總收入的 19.7%。

Other revenue, which includes outlets, showrooms, strategic sales, pop-up stores and warehouse sales totaled $44 million versus $39.2 million in the first quarter of last year.

包括奧特萊斯、陳列室、戰略銷售、快閃店和倉庫銷售在內的其他收入總計 4400 萬美元，而去年第一季度為 3920 萬美元。

Gross profit for the first quarter was $256.9 million or 49.4% of net revenue compared to $239.1 million or 48.3% of net revenue in Q1 2016.

第一季度毛利潤為 2.569 億美元，占淨收入的 49.4%，而 2016 年第一季度為 2.391 億美元，占淨收入的 48.3%。

The gross profit rate in Q1 was adversely impacted by 100 basis points related to ivivva inventory provisions.

第一季度的毛利率受到與 ivivva 庫存準備金相關的 100 個基點的不利影響。

Excluding these items, adjusted gross margin increased 210 basis points versus last year, which exceeded our expectations for the quarter with the increase comprised of the following: 380 basis points of overall product margin improvement, primarily driven by lower FOB costs, higher average unit retails and a modest benefit in air freight, an extension of our strategic supply chain efforts that we've seen driving margin improvement over the last several quarters; foreign-exchange contributed to a 30 basis point year-over-year improvement in gross margin.

剔除這些項目，調整後毛利率較去年增加 210 個基點，超出我們對本季度的預期，增幅包括以下內容：整體產品利潤率提高 380 個基點，主要受 FOB 成本降低、平均單位零售額增加的推動以及在空運方面的適度收益，這是我們戰略供應鏈努力的延伸，我們已經看到在過去幾個季度推動了利潤率的提高；外匯導致毛利率同比提高 30 個基點。

Offsetting these factors was 200 basis points of deleverage, half attributable to occupancy and depreciation and the other half to fixed costs related to our product and supply chain team.

抵消這些因素的是 200 個基點的去槓桿，其中一半歸因於佔用和折舊，另一半歸因於與我們的產品和供應鏈團隊相關的固定成本。

SG&A expenses were $199.1 million or 38.3% of net revenue compared to $181.5 million or 36.6% of net revenue for the same period last year.

SG&A 費用為 1.991 億美元，占淨收入的 38.3%，而去年同期為 1.815 億美元，占淨收入的 36.6%。

The deleverage in SG&A was generally in line with our expectations and due to increases in store operating cost, digital marketing, investments in brand and community and IT, partially offset by a benefit in foreign exchange relative to last year.

SG&A 的去槓桿總體上符合我們的預期，並且由於商店運營成本、數字營銷、品牌和社區投資以及 IT 的增加，部分被相對於去年的外匯收益所抵消。

Separately, as a result of our plans for the ivivva business, we incurred $12.3 million in asset impairment and restructuring costs associated with the write-off of capital assets and severance.

另外，由於我們對 ivivva 業務的計劃，我們產生了 1230 萬美元的資產減值和與資本資產註銷和遣散費相關的重組成本。

Operating income for the quarter was $45.4 million or 8.7% of net revenue compared with $57.6 million or 11.6% of net revenue in Q1 2016.

本季度營業收入為 4540 萬美元，占淨收入的 8.7%，而 2016 年第一季度為 5760 萬美元，占淨收入的 11.6%。

Excluding the pretax charges of $17.7 million related to the planned closures of the ivivva stores, adjusted operating income for the quarter increased to $63.2 million, reflecting 50 basis points of operating margin expansion versus last year to 12.1% of sales.

不計與計劃關閉 ivivva 商店相關的 1770 萬美元的稅前費用，本季度調整後的營業收入增加到 6320 萬美元，反映出營業利潤率比去年增長 50 個基點，達到銷售額的 12.1%。

Tax expense for the quarter was $15.1 million or 32.6% of pretax earnings compared to an effective tax rate of 20.6% a year ago.

本季度的稅收支出為 1510 萬美元，佔稅前收益的 32.6%，而一年前的有效稅率為 20.6%。

Keep in mind, the prior year tax rate includes certain adjustments for the company's transfer pricing arrangement and associated repatriation of foreign earnings.

請記住，上一年的稅率包括對公司轉讓定價安排和相關的國外收益匯回的某些調整。

The adjusted tax rate for the quarter was 30.8% compared to the 29.8% in the first quarter of 2016.

本季度調整後的稅率為 30.8%，而 2016 年第一季度為 29.8%。

Net income for the quarter was $31.2 million or $0.23 per diluted share compared to earnings per diluted share of $0.33 for the first quarter of 2016.

本季度的淨收入為 3120 萬美元或稀釋後每股收益 0.23 美元，而 2016 年第一季度的每股稀釋後收益為 0.33 美元。

Net income in Q1 2017 includes $13.1 million or $0.09 per share in ivivva-related charges.

2017 年第一季度的淨收入包括 1310 萬美元或每股 0.09 美元的 ivivva 相關費用。

Excluding these charges, adjusted net income in the quarter was $44.3 million or $0.32 per share or an increase of 7% to an adjusted EPS of $0.30 last year.

不計這些費用，本季度調整後的淨收入為 4430 萬美元或每股 0.32 美元，比去年調整後的每股收益 0.30 美元增長 7%。

Our weighted average diluted shares outstanding for the quarter were $137.2 million versus $137.5 million a year ago, which takes into account the weighted impact of 234,000 shares repurchased during the quarter at an average price of $54.60 per share.

我們本季度的加權平均稀釋後流通股為 1.372 億美元，而一年前為 1.375 億美元，其中考慮了本季度以每股 54.60 美元的平均價格回購 234,000 股股票的加權影響。

By the end of the quarter, we had completed a total of $12.8 million in total share repurchases under the current $100 million authorization, which was the maximum available for repurchase under our existing 10b5-1 program.

截至本季度末，我們根據當前的 1 億美元授權完成了總計 1280 萬美元的股票回購，這是我們現有 10b5-1 計劃下可用於回購的最高金額。

Capital expenditures were $19.9 million for the quarter compared to $26.6 million in the first quarter of last year.

本季度的資本支出為 1990 萬美元，而去年第一季度為 2660 萬美元。

The reduction relates primarily to fewer store openings as our store opening cadence this year is weighted more heavily to the back half.

減少主要與開店次數減少有關，因為我們今年的開店節奏在後半部分的權重更大。

Turning to our balance sheet highlights.

轉向我們的資產負債表亮點。

We ended the quarter with $698.3 million in cash and cash equivalents.

我們在本季度結束時擁有 6.983 億美元的現金和現金等價物。

Inventory at the end of the first quarter was $304 million or 6% higher than at the end of the first quarter of 2016, reflecting a 3% decrease in inventory per square foot.

第一季度末的庫存為 3.04 億美元，比 2016 年第一季度末高 6%，反映出每平方英尺的庫存減少了 3%。

We expect our inventory growth at the end of Q2 and for the balance of the year to generally grow in line with our forward sales trend.

我們預計我們在第二季度末的庫存增長以及今年餘下時間的增長將與我們的遠期銷售趨勢保持一致。

Turning now to our updated outlook for the second quarter and fiscal year 2017.

現在轉向我們對第二季度和 2017 財年的最新展望。

We are pleased with the results we are now seeing from our efforts to recover the sales trend in our e-commerce business.

我們對恢復電子商務業務銷售趨勢的努力所取得的成果感到滿意。

Quarter-to-date trends online are now comping in the positive low double digits and we see additional opportunity ahead.

季度至今的在線趨勢現在正處於兩位數的正低位，我們看到了更多的機會。

To deliver this important inflection in our digital business, we have taken aggressive steps to reorganize our digital teams and have leveraged certain external resources not previously contemplated in our financial plans.

為了在我們的數字業務中實現這一重要轉變，我們已採取積極措施來重組我們的數字團隊，並利用了我們財務計劃中以前未考慮的某些外部資源。

As a result, we will have certain onetime investments related to this recovery effort, which we will break out momentarily as part of our SG&A guidance.

因此，我們將有一些與這項恢復工作相關的一次性投資，作為我們 SG&A 指導的一部分，我們將立即展開。

We're also pleased with the performance of our store teams in a difficult macro environment and we continue to see solid ongoing results.

我們也對我們的商店團隊在困難的宏觀環境中的表現感到滿意，我們繼續看到穩健的持續成果。

Please note that the guidance we are sharing excludes additional costs related to the ivivva restructuring.

請注意，我們分享的指南不包括與 ivivva 重組相關的額外費用。

For Q2, we expect revenues to be in the range of $565 million to $570 million.

對於第二季度，我們預計收入將在 5.65 億美元至 5.7 億美元之間。

This is based on a comparable sales percentage increase in the low to mid-single digits on a constant-dollar basis compared to the second quarter of 2016 and reflects a low to mid-teens e-commerce comp estimate.

這是基於與 2016 年第二季度相比，按固定美元計算的中低個位數的可比銷售額百分比增長，並反映了低至中位數的電子商務比較估計。

This also assumes the Canadian dollar at 0.76 to the U.S. dollar and 8 new store openings in the quarter.

這還假設加元兌美元匯率為 0.76，並且本季度有 8 家新店開業。

We anticipate gross margin, normalized for ivivva, to increase approximately 100 basis points over Q2 of last year.

我們預計 ivivva 標準化後的毛利率將比去年第二季度增加約 100 個基點。

This reflects strong product margin improvements partially offset by occupancy and depreciation trends similar to Q1.

這反映了強勁的產品利潤率改善部分被類似於第一季度的入住率和折舊趨勢所抵消。

We expect SG&A in the second quarter to delever from Q2 2016 by approximately 350 basis points.

我們預計第二季度的 SG&A 將比 2016 年第二季度降低約 350 個基點。

This deleverage is greater than our original plans contemplated, with approximately half related to critical onetime expenditures to support our e-commerce business as we just discussed.

正如我們剛剛討論的那樣，這種去槓桿化比我們最初的計劃要大，大約一半與關鍵的一次性支出有關，以支持我們的電子商務業務。

These aggressive actions, encompassing site optimization, visual merchandising, improved social engagement and digital marketing in a short period of time have already made a significant impact, improving our digital comps from flat to low double-digits, and I am excited by the momentum this gives us for the balance of Q2 and the second half of the year.

這些激進的行動，包括網站優化、視覺營銷、改善社會參與和數字營銷，在短時間內已經產生了重大影響，將我們的數字組合從平緩到低兩位數，我對這種勢頭感到興奮給我們第二季度和下半年的餘額。

The remainder of the SG&A deleverage is related to brand and community investments associated with our new global brand campaign that we launched in May along with IT spend related to key technology projects.

SG&A 去槓桿的其餘部分與我們在 5 月推出的新全球品牌活動相關的品牌和社區投資以及與關鍵技術項目相關的 IT 支出有關。

We expect foreign exchange to have a nominal impact to SG&A in Q2 based on actions taken to mitigate our exposures.

根據為減輕我們的風險而採取的行動，我們預計第二季度外匯將對 SG&A 產生名義上的影響。

Assuming a normalized tax rate of 31% and 137.2 million diluted weighted average shares outstanding, we expect normalized diluted earnings per share in the second quarter to be in the range of $0.33 to $0.35 versus $0.38 a year ago.

假設標準化稅率為 31% 和 1.372 億股攤薄加權平均流通股，我們預計第二季度標準化攤薄每股收益將在 0.33 美元至 0.35 美元之間，而一年前為 0.38 美元。

It's important to note this includes approximately $0.04 to $0.05 of earnings impact from expense related to our digital acceleration work that I just mentioned.

需要注意的是，這包括我剛才提到的與我們的數字加速工作相關的費用對收入的大約 0.04 美元到 0.05 美元的影響。

For the full year 2017, we expect revenue to be in the range of $2.53 billion to $2.58 billion.

對於 2017 年全年，我們預計收入將在 25.3 億美元至 25.8 億美元之間。

This is based on a comparable sales percentage increase in the low single-digits on a constant dollar basis.

這是基於以固定美元為基礎的低個位數的可比銷售百分比增長。

The guidance range takes into account the planned closures of our ivivva stores and the associated reduction in revenues, offset partially by the accelerating trends we are seeing take shape in the business and in particular, digital.

指導範圍考慮了我們 ivivva 商店的計劃關閉和相關的收入減少，部分抵消了我們看到的業務加速趨勢，特別是數字化趨勢。

We continue to expect to open up to 50 company-operated stores in 2017.

我們繼續預計 2017 年將開設多達 50 家公司自營店。

This includes 15 or more internationally, and represents a square footage increase in the low double-digits.

這包括 15 個或更多國際，並且代表了低兩位數的平方英尺增長。

We expect normalized gross margin for the year to increase 50 to 100 basis points from 2016, reflecting the benefits of product margin improvements, primarily in Q1 and Q2 and moderating into the second half.

我們預計今年的標準化毛利率將比 2016 年增加 50 至 100 個基點，這反映了產品利潤率改善的好處，主要是在第一季度和第二季度，並在下半年放緩。

We continue to expect deleverage in products and supply chain SG&A as well as occupancy and depreciation, primarily due to more store openings planned versus last year, including those higher occupancy international locations.

我們繼續預計產品和供應鏈 SG&A 以及入住率和折舊率會下降，這主要是由於與去年相比計劃開設更多門店，包括那些入住率較高的國際門店。

We now expect SG&A for the full year to deleverage by approximately 50 to 100 basis points versus 2016.

我們現在預計全年的 SG&A 將比 2016 年去槓桿化約 50 至 100 個基點。

This includes the onetime digital-related investments, which I mentioned earlier, and accounts for approximately 50 basis points of the increase.

這包括我之前提到的與數字相關的一次性投資，約佔增長的 50 個基點。

In addition, we will continue to invest in brand and community activities, IT and our international business, notably to support our expansion efforts in Asia.

此外，我們將繼續投資於品牌和社區活動、IT 和我們的國際業務，特別是支持我們在亞洲的擴張努力。

As we complete our work in digital we expect the SG&A rate to moderate in the second half of the year and provide leverage in Q4.

隨著我們完成數字化工作，我們預計 SG&A 利率將在下半年放緩，並在第四季度提供槓桿作用。

We now expect our normalized fiscal year 2017 diluted earnings per share to be in the range of $2.28 to $2.38.

我們現在預計我們正常化的 2017 財年每股攤薄收益將在 2.28 美元至 2.38 美元之間。

This increase to our full year guidance reflects our confidence that the positive trends we're now seeing will extend for the full year.

我們對全年指引的增加反映了我們對我們現在看到的積極趨勢將延續到全年的信心。

Our EPS guidance is based on 137.2 million diluted weighted average shares outstanding, and also assumes a normalized effective tax rate of 31%.

我們的每股收益指引基於 1.372 億股稀釋加權平均流通股，並假設標準化有效稅率為 31%。

We expect capital expenditures to range between $175 million and $180 million for the fiscal year 2017, reflecting new store openings, renovations, relocation capital and also strategic IT investments.

我們預計 2017 財年的資本支出將在 1.75 億美元至 1.8 億美元之間，這反映了新店開業、翻新、搬遷資本以及戰略性 IT 投資。

This is an increase versus our prior guidance of $170 million to $175 million due to increased investments to accelerate our digital business, plus additional capital related to new and remodeled stores.

這與我們之前的 1.7 億美元至 1.75 億美元的指導相比有所增加，因為增加了加速我們的數字業務的投資，以及與新店和改建店相關的額外資本。

Before we take your questions, I wanted to emphasize the importance of the strategic measures we've taken to reorganize and strengthen our digital and technology capabilities.

在我們回答您的問題之前，我想強調我們為重組和加強我們的數字和技術能力而採取的戰略措施的重要性。

We have leveraged both internal and external resources in this effort to generate results quickly.

在這項工作中，我們利用了內部和外部資源來快速產生結果。

These actions have carried costs that are impacting SG&A in the near-term, but we expect to realize meaningful SG&A leverage in Q4 as we clear these onetime investments.

這些行動帶來了短期內影響 SG&A 的成本，但我們希望在第四季度實現有意義的 SG&A 槓桿作用，因為我們清除了這些一次性投資。

We are confident that these are the correct investments to make now to build our business for the long-term.

我們相信，這些是現在為建立我們的長期業務而進行的正確投資。

We've also balanced these decisive near-term moves with thoughtful structural changes, including the recent announcements within our leadership team.

我們還平衡了這些決定性的近期舉措與深思熟慮的結構變化，包括我們領導團隊最近的公告。

I'm excited for my new role and the opportunity to work more closely with our technology teams.

我對自己的新角色以及與我們的技術團隊更緊密合作的機會感到興奮。

And I am thrilled to have Julie Averill joining us as our new CTO, leading all of our global IT functions.

我很高興 Julie Averill 作為我們的新 CTO 加入我們，領導我們所有的全球 IT 職能部門。

Julie has nearly 20 years of broad-based IT experience and was most recently Chief Information Officer at REI.

Julie 擁有近 20 年廣泛的 IT 經驗，最近擔任 REI 的首席信息官。

I look forward to working with her to further build our technology infrastructure to achieve our growth plans.

我期待與她合作，進一步建設我們的技術基礎設施，以實現我們的增長計劃。

And with that, we'd like to open the call for questions.

有了這個，我們想打開提問的電話。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Your first question is from Brian Tunick with Royal Bank of Canada.

您的第一個問題來自加拿大皇家銀行的 Brian Tunick。

This is Kate on for Brian.

這是凱特為布賴恩准備的。

Congrats on the quarter-to-date improvement.

祝賀季度至今的改進。

I guess just we were thinking about what actions, specifically, you took in Q1 that you think most directly impacted the comp trend just from a merchandise perspective.

我想我們只是在考慮您在第一季度採取的哪些行動，您認為僅從商品的角度最直接地影響了競爭趨勢。

And then, I guess, with Sun in the room, I guess, when you're thinking about what changes you're making here in 2Q from a product perspective and into the back half, what do you see as the most meaningful opportunity in order to help continue the improved comp momentum?

然後，我想，有 Sun 在房間裡，我想，當你從產品的角度考慮你在第二季度所做的改變時，到後半部分，你認為最有意義的機會是什麼？為了幫助繼續改善競爭勢頭？

Thanks for your question.

謝謝你的問題。

So the 2 most important actions we took was, one, is getting back with depth in the assortment that we had lacked earlier on in the quarter.

因此，我們採取的兩項最重要的行動是，一項是在本季度早些時候缺乏的分類中恢復深度。

And, two, was really, as we had articulated on the last call, really focusing on our digital experience.

而且，第二，正如我們在上次電話會議中所表達的那樣，真正專注於我們的數字體驗。

And I'm sure you've seen and I'm sure you've experienced it, but what we've been able to create in a very short period of time has actually brought to life -- or the brand to life in a way that is really, really powerful.

而且我相信你已經看到並且我相信你已經經歷過，但是我們能夠在很短的時間內創造出的東西實際上已經賦予了生命——或者品牌在一個這種方式非常非常強大。

And we've seen the highest engagement from our guests ever actually, whether it was a strap happy or the launch of the Enlite Bra or the campaign that we launched at that time.

實際上，我們已經看到了客人的最高參與度，無論是對錶帶感到滿意，還是 Enlite 文胸的推出，還是我們當時發起的活動。

So I mean, I'll let Sun speak more, specifically to the assortment.

所以我的意思是，我會讓孫說更多，特別是關於分類。

But from an assortment and from a digital standpoint, I mean, we were incredibly focused.

但從分類和數字的角度來看，我的意思是，我們非常專注。

We articulated what we needed to do.

我們闡明了我們需要做的事情。

We did it.

我們做到了。

And actually, the results exceeded our expectations.

實際上，結果超出了我們的預期。

And from the merchandising standpoint, I think 2 key things for us that really helped turn some of the trend around.

從商品銷售的角度來看，我認為對我們來說有兩件關鍵的事情確實有助於扭轉一些趨勢。

The first thing was, we were quickly able to get back into color and print, so we do see that balance improving.

第一件事是，我們很快就能夠恢復色彩和印刷，所以我們確實看到了這種平衡的改善。

And I think, given that we are a performance and functional brand, the fact that we had really strong launches in our Nulux fabric franchise, as well as the launch in our Enlite Bra, that really helped buoy the trend.

而且我認為，鑑於我們是一個性能和功能性品牌，我們在 Nulux 面料系列中的推出非常強勁，以及在 Enlite Bra 中推出，這確實有助於提振這一趨勢。

And we know that we have a lot more of those innovation platforms and franchises in the pipeline for the future, so we remain optimistic.

而且我們知道，未來我們有更多的創新平台和特許經營權，因此我們保持樂觀。

Great.

偉大的。

And then, I guess, just a follow-up on the Enlite Bra.

然後，我想，只是對 Enlite 胸罩的跟進。

Can you just speak to any pricing or branding learnings that came as you implemented that launch?

您能否談談您在實施該發佈時獲得的任何定價或品牌知識？

Sounds like it's really bringing in some new customers to the brand.

聽起來它確實為該品牌帶來了一些新客戶。

Yes, we're really excited.

是的，我們真的很興奮。

It's our most expensive bra in our portfolio.

這是我們產品組合中最昂貴的文胸。

We have seen 0 price resistance, so what we're finding is that if we have a technical solve and we're differentiated in the market, she's willing to pay the price.

我們已經看到 0 價格阻力，所以我們發現如果我們有技術解決方案並且我們在市場上有所區別，她願意付出代價。

The next question's from Adrienne Yih with Wolfe Research.

下一個問題來自 Wolfe Research 的 Adrienne Yih。

My question is on the digital growth.

我的問題是關於數字增長。

First, on the gross margin.

首先，關於毛利率。

How should we think about the gross margin in that channel and the op margin, relative to brick-and-mortar?

相對於實體店，我們應該如何考慮該渠道的毛利率和運營利潤率？

And then, Stuart, can you also talk about the inventory markdown, the $5.4 million?

然後，斯圖爾特，你能不能談談庫存降價，540 萬美元？

Was it all ivivva?

都是 ivivva 嗎？

Was it any go forward product?

是前進的產品嗎？

And is there any residual markdown in Q2 that we should expect?

我們應該期待第二季度的任何剩餘降價嗎？

Hey Adrienne, certainly.

嘿，艾德里安，當然。

So on the profit profile of our digital business, and there is certainly disclosure that we provide in our Q. We enjoy a stronger operating margin with our e-commerce business.

因此，關於我們數字業務的利潤狀況，我們在 Q 中肯定會提供披露。我們的電子商務業務享有更高的營業利潤率。

I mean, specifically, we did not have the rent and the payroll cost that we incur as part of our bricks-and-mortar business, and the product margins are slightly higher as well, as we have a more efficient way to manage our inventory pool online.

我的意思是，具體來說，我們沒有實體業務所產生的租金和工資成本，而且產品利潤率也略高，因為我們有更有效的方式來管理我們的庫存在線游泳池。

So that is a benefit to the e-commerce business.

因此，這對電子商務業務是有利的。

And as we continue to have goals, to drive a higher proportion of our business through our e-commerce channels, that should have an accretive impact on our overall company operating margins.

隨著我們繼續制定目標，通過我們的電子商務渠道推動更高比例的業務，這應該會對我們公司的整體運營利潤率產生積極影響。

In terms of the inventory cost that we called out, and there is a [wreck] in the press release that addresses specifically the cost of the inventory provision we took related to the ivivva restructuring decision.

就我們提到的庫存成本而言，新聞稿中有一個[殘骸]專門解決了我們與 ivivva 重組決定相關的庫存準備成本。

That is entirely related to ivivva, and at this point, we do not expect further inventory provisions in the second quarter.

這與 ivivva 完全相關，在這一點上，我們預計第二季度不會有進一步的庫存撥備。

We believe that should all fall within the first quarter disclosure.

我們認為這都應該在第一季度披露範圍內。

The next question is from Matthew Boss with JPMorgan.

下一個問題來自摩根大通的 Matthew Boss。

So just a breakdown, the low to mid-single digit comps that you're seeing here in May, or that you saw in May.

所以只是一個細分，你在 5 月在這裡看到的或者你在 5 月看到的低到中個位數的組合。

I guess how would you rank the sequential improvement by category, if we were to bridge the 400 basis point comp improvement versus the negative one in the first quarter?

我想如果我們要將 400 個基點的補償改善與第一季度的負面改善聯繫起來，您將如何按類別對連續改善進行排名？

Hey Matt, it's Stuart.

嘿，馬特，我是斯圖爾特。

Yes, I think that we're seeing strength out of the latter part of the first quarter into the second quarter, certainly in both channels.

是的，我認為我們看到從第一季度後期到第二季度的實力，當然在兩個渠道中都是如此。

Versus our original expectations for Q1, we saw a really strong trend in stores in particular, in the latter part of Q1.

與我們最初對第一季度的預期相比，我們在第一季度的後期看到了特別是商店的強勁趨勢。

We see that continuing into the first quarter.

我們認為這種情況會持續到第一季度。

That's definitely part of the guidance that we gave.

這絕對是我們提供的指導的一部分。

But importantly, and probably strategically, the work that we are in, in the digital acceleration effort has produced an important inflection in the trend of that business from the first quarter into the second quarter, which the quarter-to-date trend that we commented on in the prepared remarks reflect the impact that, that effort is having.

但重要的是，可能在戰略上，我們在數字加速方面所做的工作已經對該業務從第一季度到第二季度的趨勢產生了重要的影響，我們評論了本季度至今的趨勢在準備好的評論中反映了該努力正在產生的影響。

We are very confident that those trends will continue.

我們非常有信心，這些趨勢將繼續下去。

And as we mentioned, we see opportunity above the quarter-to-date trends.

正如我們所提到的，我們看到了高於本季度趨勢的機會。

So that business being about 20% of the total, you can sort of back into how the relative impact on that comp guidance is shaking out, but we're really seeing strength across both channels.

因此，該業務佔總數的 20% 左右，您可以回溯到對補償指南的相對影響是如何消失的，但我們確實看到了兩個渠道的實力。

Got it.

知道了。

And then just a follow-up on SG&A, Stuart.

然後只是對 SG&A 的跟進，Stuart。

Excluding the onetime items you laid out near-term, is it still fair to think about low single-digit comps as the multiyear SG&A hurdle rate?

排除您近期列出的一次性項目，將低個位數的組合視為多年 SG&A 障礙率是否仍然公平？

And then, I guess, if you could just touch on the strategic expense assessment, and what you found in Phase I and then just potential opportunities as we think about Phase II, which I think would be more next year opportunity?

然後，我想，如果你能談談戰略費用評估，你在第一階段發現了什麼，然後是我們考慮第二階段的潛在機會，我認為明年的機會會更多？

So certainly, I think we've been pretty consistent that we expect to be able to leverage our cost structure at a low to mid-teens total revenue growth outcome.

所以當然，我認為我們一直非常一致，我們希望能夠以低到十幾歲的總收入增長結果利用我們的成本結構。

So the combination of the comp and the square footage growth are the factors that will help us achieve that.

因此，補償和平方英尺增長的結合是幫助我們實現這一目標的因素。

That's unchanged.

那是不變的。

We see that as the underlying fundamentals of how we have constructed the financial plan for this year and into next year.

我們認為這是我們如何構建今年和明年財務計劃的基本原理。

What's different, as we mentioned, is the onetime cost that we'll incur to recover our digital business.

正如我們所提到的，不同的是我們為恢復我們的數字業務將產生的一次性成本。

So that -- those fundamentals are not different.

所以——這些基本面沒有什麼不同。

In terms of the, I think the second question was regarding the SG&A work that we had begun in the later part of last year.

就這一點而言，我認為第二個問題是關於我們在去年下半年開始的 SG&A 工作。

And that work we're benefiting from this year.

我們從今年中受益的這項工作。

We'll see, as we had mentioned on the prior call, we'll see that the full benefit of that work in the second half of this year, particularly in the fourth quarter, where we expect it will be in a position to begin leveraging the top line estimates that we've offered.

我們將看到，正如我們在之前的電話會議中提到的那樣，我們將在今年下半年看到這項工作的全部好處，特別是在第四季度，我們預計它將能夠開始利用我們提供的頂線估算。

The next question's from Matt McClintock with Barclays.

下一個問題來自巴克萊銀行的馬特麥克林托克。

Great quarter.

很棒的季度。

I actually wanted to focus a little bit on 2 questions.

我實際上想稍微關注兩個問題。

The first one is just, not to continue to talk about digital, but the digital change, there's been a lot of changes going on there.

第一個只是，不再繼續談論數字，而是數字變化，那裡發生了很多變化。

And I just want a high level, strategically, what specifically are you doing now that's having such a meaningful, immediate impact that you really didn't do before?

我只是想要一個高水平的戰略性的，你現在具體在做什麼，它會產生如此有意義的、直接的影響，而你以前真的沒有這樣做過？

And how to think about that in terms of one-time cost, Stuart?

斯圖爾特，如何從一次性成本的角度考慮這一點？

It would seem like maybe the onetime costs are consulting fees or something like that.

似乎一次性費用可能是諮詢費或類似的費用。

How much of that is onetime?

其中有多少是一次性的？

How much should we think about that as an ongoing cost, just to grow the business?

為了發展業務，我們應該將其視為持續成本多少？

Well Matt, if you go back a couple of years, I mean there was really no digital culture, no digital mindset at lululemon.

好吧，馬特，如果你回到幾年前，我的意思是說 lululemon 真的沒有數字文化，沒有數字思維方式。

And so we built this Center of Excellence with digital that really allowed us to put the tools, the platform, the foundation in place to really be able to build the global, scalable business that we knew we needed, including CRM, which didn't exist.

因此，我們用數字技術建立了這個卓越中心，真正讓我們能夠將工具、平台和基礎部署到位，從而真正能夠建立我們知道我們需要的全球性、可擴展的業務，包括 CRM，它沒有存在。

We've done that over the past 2 years.

在過去的 2 年中，我們已經做到了這一點。

We've got this outstanding foundation.

我們有這個傑出的基礎。

And the last piece of the puzzle was really to bring the brand to life digitally in a way that's as powerful as in the stores.

最後一個難題是真正以與商店一樣強大的方式以數字方式將品牌帶入生活。

And when you think about our performance in the stores, it's all about human connections.

當您考慮我們在商店中的表現時，一切都與人際關係有關。

We refer constantly about the educators being the most important role in the company, and so translating that online is difficult.

我們經常提到教育工作者是公司中最重要的角色，因此在線翻譯很困難。

So the focus over the past few months, now having the foundation in place has really been to bring the brand to life in a powerful way.

因此，過去幾個月的重點，現在奠定了基礎，實際上是以強大的方式將品牌帶入生活。

And I think you can see that in the way the product is being shot, in the way we're talking about technology, and the way we're bringing video to life and maybe most importantly, in how we're linking social PR, our presence on mobile as well as on desktop.

而且我認為您可以從產品拍攝的方式，我們談論技術的方式，以及我們將視頻帶入生活的方式中看到，也許最重要的是，我們如何將社交公關聯繫起來，我們在移動設備和桌面設備上的存在。

So that has had a very significant impact on the business.

因此，這對業務產生了非常重大的影響。

And it's really -- if you think about that Center of Excellence, we've built it.

真的——如果你想想那個卓越中心，我們已經建立了它。

We've built the foundation.

我們已經建立了基礎。

And the transition that we've been driven lately really brings all of the technology under Julie Averill, our new CTO, who will be reporting to Stuart, all the Digital Marketing, guest acquisition, driving traffic in our brand and community, which the timing is perfect with the launch of This Is Yoga.

我們最近推動的轉型確實將所有技術帶到了我們的新首席技術官 Julie Averill 的領導下，他將向 Stuart 匯報所有數字營銷、客戶獲取、推動我們品牌和社區的流量，時機與This Is Yoga 的推出完美契合。

And then all visual merchandising with Sun.

然後是 Sun 的所有視覺營銷。

And finally, the operating part of running the channel under our leaders in the various regions with Celeste, Ken and Gareth, so that they can truly have a guest-centric vision to servicing our guests that is channel agnostic.

最後，在我們與 Celeste、Ken 和 Gareth 的領導領導下運營渠道的運營部分，這樣他們就可以真正擁有以客戶為中心的願景，為我們的客戶提供與渠道無關的服務。

And Matt, just to follow on that and offer some details on the costs.

還有馬特，請繼續跟進並提供有關成本的一些詳細信息。

A lot of the costs that we're incurring are related to getting results quickly.

我們產生的許多成本都與快速獲得結果有關。

So there's a few buckets I would group them into.

所以我會把它們分成幾個桶。

First is the technical, digital work related to our website.

首先是與我們網站相關的技術、數字工作。

We identified a number of opportunities through the work that we started in the first quarter and are now continuing into the second quarter that were hard-core coding issues that we needed to tackle.

我們從第一季度開始的工作中發現了許多機會，現在正在持續到第二季度，這些都是我們需要解決的核心編碼問題。

And in order to do that quickly, we needed to bring in external resources so that we could have the critical mass, in terms of the expertise to do that in a quick manner.

為了快速做到這一點，我們需要引入外部資源，以便我們能夠擁有足夠的專業知識來快速做到這一點。

So that's a big part of those costs.

所以這是這些成本的很大一部分。

Otherwise, you heard us speak about the creative content on the website, photography.

否則，您聽到我們談論網站上的創意內容，攝影。

We've engaged agencies to help us not only with the development of that creative content, but also in the photography itself.

我們聘請了代理機構來幫助我們開發創意內容，以及攝影本身。

So the agency cost related to the photography and creative content are really the other pieces of the cost that we're incurring.

因此，與攝影和創意內容相關的代理成本實際上是我們承擔的其他成本。

The onetime in nature aspects and the way we've characterized it in that manner is that, again, we've asked these external resources to join us during this task force we've organized to help us drive change rapidly.

曾經在自然方面以及我們以這種方式對其進行表徵的方式是，我們再次要求這些外部資源加入我們組織的這個工作組，以幫助我們快速推動變革。

And so, in order to do this under those time tables, that is what's giving rise to the additional costs that we're incurring outside of our normal business model.

因此，為了在這些時間表下做到這一點，這就是導致我們在正常商業模式之外產生的額外成本的原因。

As we complete this work over the course of this summer and early part of Q3, we'll be able to transition and build on this work and take it forward as a new part of how we do business from a digital standpoint, and be able to better leverage and more normalize the cost profile.

隨著我們在今年夏天和第三季度初完成這項工作，我們將能夠過渡並在這項工作的基礎上繼續發展，並將其作為我們從數字角度開展業務的新部分，並能夠更好地利用和更規範化成本概況。

To add to Stuart's point.

補充斯圖爾特的觀點。

I mean, we've been -- we're very confident about doubling down on the investment because week after week, almost day after day, I mean we see the results in the business of the work that we're doing.

我的意思是，我們一直 - 我們對加倍投資非常有信心，因為一周又一周，幾乎日復一日，我的意思是我們看到了我們正在做的工作的結果。

So there is this real time feedback loop about the quality and the impact of the work that we're doing.

所以有一個關於我們正在做的工作的質量和影響的實時反饋循環。

The next question is from Oliver Chen with Cowen and Company.

下一個問題來自 Cowen and Company 的 Oliver Chen。

We have a question related to capabilities with digital and inventory management.

我們有一個與數字和庫存管理功能相關的問題。

What are your thoughts around how you feel about the bricks and clicks, in terms of the inventory in-store versus online?

您對實體店和點擊的感覺有何看法，無論是店內庫存還是在線庫存？

And Stuart, on the strategic supply chain efforts, could you just update us on what's ahead, in terms of opportunities there as you continue to make progress in both quality and speed?

斯圖爾特，關於戰略供應鏈的努力，您能否向我們介紹一下未來的情況，在您繼續在質量和速度方面取得進展的機會方面？

Those were our main questions.

這些是我們的主要問題。

Thank you.

謝謝你。

Hey Oliver, this is Laurent.

嘿奧利弗，這是勞倫特。

Quickly on the omnichannel, I mean, I think I mentioned that in the prepared remarks.

很快在全渠道上，我的意思是，我想我在準備好的評論中提到了這一點。

We're actually really, really proud about the results of our omnichannel strategy.

實際上，我們對全渠道戰略的成果感到非常非常自豪。

I mean, from the implementation of RFID to the ability to really maximize the use of inventory and obviously the margins that we deliver.

我的意思是，從 RFID 的實施到真正最大限度地利用庫存以及我們提供的利潤的能力。

I mean like the -- our mid-channel strategies are working incredibly well in -- both from a financial standpoint but also in servicing our guest.

我的意思是——無論是從財務角度還是在為我們的客人提供服務方面，我們的中間渠道策略都運行得非常好。

And we've got more of those coming online in the latter part of the year.

在今年下半年，我們有更多的人上線。

And I'm spacing on the second part of your question...

我在你問題的第二部分留出空間......

Right, on the supply chain and some of the strategic, I guess, goals that we have there.

對，在供應鍊和一些戰略上，我猜，我們在那裡的目標。

Now that we're -- we've been happy with the results that we've seen in recovering our gross margins, and we believe we've established a more stable and reliable sourcing and supply chain organization.

現在我們 - 我們對恢復毛利率的結果感到滿意，我們相信我們已經建立了一個更穩定和可靠的採購和供應鏈組織。

I think our next priorities turn to continuing to support our design teams from an innovation standpoint, so that we can enable the work they're doing from a sourcing standpoint, to bring to life meaningful innovation and designs that will matter to our guests and help us solve problems for athletes.

我認為我們的下一個優先事項轉向從創新的角度繼續支持我們的設計團隊，以便我們能夠從採購的角度啟用他們正在做的工作，為我們的客人帶來有意義的創新和設計並提供幫助我們為運動員解決問題。

In addition to that, I think importantly, we're continuing to look at ways for us to build flexibility into our supply chain, so that we can position raw materials in a way that we can respond to guest trends more rapidly.

除此之外，我認為重要的是，我們正在繼續尋找在我們的供應鏈中建立靈活性的方法，以便我們能夠以能夠更快地響應客戶趨勢的方式定位原材料。

We saw some of the first examples of this late in the first quarter, where we were able to actually chase into certain styles where we saw gaps in color, and even introduce certain graphic styles that we hadn't done in a while so -- and with remarkable sell-through.

我們在第一季度末看到了這方面的一些第一個例子，我們能夠真正追逐某些我們看到顏色差距的樣式，甚至引入我們有一段時間沒有做過的某些圖形樣式，所以——並具有顯著的銷售量。

So we're really pleased to see those initial wins, and those are -- that flexibility is something we're looking to expand.

所以我們真的很高興看到這些最初的勝利，而且那些是我們正在尋求擴展的靈活性。

And from an organizational standpoint -- with Sun reporting to me from an organizational standpoint, I mean, we're going to create some healthy tension between merchandising and design, which will really allow us to sort of drive the design vision into profitable growth.

從組織的角度來看——Sun 從組織的角度向我匯報，我的意思是，我們將在銷售和設計之間創造一些健康的張力，這將真正讓我們能夠將設計願景推向盈利增長。

Okay, and the last thing is on the product side.

好的，最後一件事是在產品方面。

You've really made really great progress with Enlite and Nulux.

你真的在 Enlite 和 Nulux 上取得了很大的進步。

Just how would you prioritize what are the bigger product opportunities?

您將如何優先考慮更大的產品機會？

Or how would you prioritize for the back half between tops and bottoms, and outerwear and accessories could be an opportunity too.

或者你如何優先考慮上衣和下裝之間的後半部分，外套和配飾也可能是一個機會。

Just curious about how we should think about the catalysts relative to each other?

只是好奇我們應該如何看待催化劑之間的關係？

Well you'll -- Oliver, you'll see it when it comes to life.

好吧，你會 - 奧利弗，你會在生活中看到它。

So we're not going to tell you too much, too early.

所以我們不會太早地告訴你太多。

But one thing I can tell you, that we're obviously always focused on function first.

但我可以告訴你一件事，我們顯然總是首先關注功能。

And when we do that, it pays off tremendously, whether it's with Nulux or Enlite, I mean, we've got 2 incredible data points right there.

當我們這樣做時，它會帶來巨大的回報，無論是使用 Nulux 還是 Enlite，我的意思是，我們在那裡獲得了 2 個令人難以置信的數據點。

So you're going to see a focus on functional when it comes to -- and that's really what makes us who we are.

因此，當涉及到功能時，您將看到對功能的關注-這確實使我們成為了我們。

The next question's from Mark Altschwager with Robert W. Baird.

下一個問題來自 Mark Altschwager 和 Robert W. Baird。

Just a follow-up on the SG&A leverage discussion, and sorry to harp on it.

只是對 SG&A 槓桿討論的跟進，很抱歉在此發表評論。

The guidance for the year, I guess, really doesn't get you to that low to mid-teens revenue growth rate in the back half.

我想，今年的指導確實不會讓你在後半段達到那麼低到十幾歲的收入增長率。

Yet Stuart, I think you mentioned expecting meaningful SG&A leverage by Q4.

然而，斯圖爾特，我認為你提到預計到第四季度會有有意義的 SG&A 槓桿。

And so I'm just trying to make sure I understand.

所以我只是想確保我理解。

I mean, as you get to Q4 would you expect to be at a point where you can leverage SG&A consistently on a go-forward basis?

我的意思是，當您進入第四季度時，您是否希望能夠在前進的基礎上始終如一地利用 SG&A？

Or is the Q4 leverage on, call it a low double-digit revenue growth, more of an exception versus the rule?

還是第四季度的槓桿作用，稱之為低兩位數的收入增長，更多的是例外而不是規則？

Yes, Mark, it's a good question.

是的，馬克，這是個好問題。

I would say the way we built the model over the next 5 years and -- should enable us to deliver SG&A leverage in that top line growth range we mentioned, that low to mid-teens.

我想說的是我們在未來 5 年內構建模型的方式，並且——應該使我們能夠在我們提到的收入增長范圍內提供 SG&A 槓桿，即低到十幾歲。

I think in the fourth quarter, there's an opportunity to do better than that based on the work that we've done to improve our cost structure, coming out of the project that we had mentioned in the second half of last year.

我認為在第四季度，基於我們為改善成本結構所做的工作，我們有機會做得比去年下半年提到的項目更好。

And we'll take those benefits forward.

我們將把這些好處向前推進。

And the fourth quarter is our largest quarter from a sales standpoint, and a little bit more flexibility to, from a quarterly standpoint, to do -- to have leverage on our cost structure.

從銷售的角度來看，第四季度是我們最大的一個季度，從季度的角度來看，我們可以更加靈活地利用我們的成本結構。

The next question is from Dana Telsey with Telsey Advisory Group.

下一個問題來自 Telsey 諮詢小組的 Dana Telsey。

As you think about the ivivva business and the exiting of that business, what long-term margin and return improvements do you think can be expected?

當您考慮 ivivva 業務和該業務的退出時，您認為可以預期哪些長期利潤率和回報改善？

And then on another note, the improvement in color, is it where you want it to be yet?

然後在另一個方面，顏色的改進，是你想要的嗎？

Or how should we see the product enhancements, whether it's on the color or whether it's the online conversion that changed in Q1, is there more runway to go?

或者我們應該如何看待產品的增強，無論是在顏色上，還是在 Q1 中改變的在線轉換，是否還有更多的跑道可走？

So Dana, it's Stuart.

達娜，是斯圖爾特。

I'll first respond to your question on ivivva, and then I'll let Sun respond your question on the color and the product, product strategy.

我會先回答你關於 ivivva 的問題，然後我會讓 Sun 回答你關於顏色和產品、產品策略的問題。

In regards to ivivva, it was a very difficult decision in terms of the restructuring plan that we have announced, that came after much deliberation.

關於 ivivva，就我們宣布的重組計劃而言，這是一個非常艱難的決定，這是經過深思熟慮後做出的。

As we look at the run rate of this business go forward, under the new structure that we have established, we expect the revenues to be a little less than half of what we saw last year.

當我們觀察這項業務的運行率時，在我們建立的新結構下，我們預計收入將略低於去年的一半。

And it should be positioned to generate positive comps that will be accretive to the overall company comps, and it should also be positioned to generate a modest operating profit, where in all prior years we've operated ivivva, it's had a small operating loss.

它應該定位於產生積極的收益，這將增加公司的整體收益，它還應該定位於產生適度的營業利潤，在我們經營 ivivva 的所有前幾年中，它的經營虧損很小。

And as we mentioned, the restructuring and the store action should be largely completed by Q3.

正如我們所提到的，重組和商店行動應該在第三季度基本完成。

And then going into color, I'd say we are happy with the improvement of the balance.

然後進入顏色，我想說我們對平衡的改善感到滿意。

We feel good in that we have a lot of white in the stores, which is seasonally, really appropriate, emphasizing light neutrals and some pops of color.

我們感覺很好，因為商店裡有很多白色，這是季節性的，非常合適，強調淺中性色和一些流行色。

I'd say that as we get into the back half of June and going into fall, we'll be even in a more ideal state.

我想說，隨著我們進入 6 月下半月並進入秋季，我們將處於更理想的狀態。

And as Stuart mentioned, we've just done a much better job partnering with the supply chain and making sure that we do have flexibility in our sourcing models.

正如 Stuart 所提到的，我們在與供應鏈的合作方面做得更好，並確保我們的採購模式確實具有靈活性。

So always able to chase back into colors that sell out.

所以總是能夠追回售罄的顏色。

And then, again, we feel very well-positioned from a portfolio standpoint, because we have a lot of key innovations in the pipeline for the back half of the year that's really focused on fabric, function and fit.

然後，再一次，從產品組合的角度來看，我們感覺自己處於非常有利的位置，因為我們在下半年有很多關鍵的創新正在醞釀中，這些創新真正專注於面料、功能和合身性。

The next question is from Paul Lejuez with Citigroup.

下一個問題來自花旗集團的 Paul Lejuez。

Stuart, can you talk about the promotional cadence in the business during the quarter?

Stuart，您能談談本季度業務的促銷節奏嗎？

How that trended, how it's been in May to date?

趨勢如何，到目前為止，5 月份的情況如何？

And also curious about store traffic, just what you saw, how did that progress during the last several months?

並且對商店流量感到好奇，您所看到的，在過去幾個月裡進展如何？

Thanks, Paul.

謝謝，保羅。

The promotional cadence has been healthy.

促銷節奏一直很健康。

We executed the warehouse sale, the physical warehouse sale in Dallas earlier this month to great success.

本月早些時候，我們在達拉斯進行了倉庫銷售，即實物倉庫銷售，取得了巨大成功。

It was a record for us that -- or approached, I should say, the record we had achieved previously with our Edmonton warehouse sale.

對我們來說，這是一個記錄——或者我應該說，接近我們之前在埃德蒙頓倉庫銷售中取得的記錄。

The sales and AUR results from that event exceeded our plans.

那次活動的銷售和 AUR 結果超出了我們的計劃。

And I think it really speaks to not only the resilience of our clearance model, but also our full price business, given the level of interest and demand we saw in that warehouse sale.

而且我認為，考慮到我們在倉庫銷售中看到的興趣和需求水平，這不僅說明了我們清倉模式的彈性，還說明了我們的全價業務。

So otherwise, markdowns in stores and online are well managed, and I think our inventory position reflects that as well.

因此，否則，商店和網上的降價促銷管理得很好，我認為我們的庫存狀況也反映了這一點。

So the markdown picture is very healthy and has been for much of Q1, and certainly now into Q2.

因此，降價情況非常健康，並且在第一季度的大部分時間裡一直如此，現在肯定是在第二季度。

Store traffic's an interesting story.

商店流量是一個有趣的故事。

It still remains a headwind for us.

對我們來說，這仍然是一個逆風。

And that was a big part of the weakness that we saw early in Q1 that we spoke about on the last call.

這是我們在第一季度初看到的弱點的很大一部分，我們在上次電話會議上談到了這一點。

We have seen improvements in store traffic.

我們看到商店客流量有所改善。

And what's been interesting is, as we have executed on our Enlite launch, the Nulux Fast And Free launch and importantly, the This Is Yoga program or campaign rather, we have seen that these events have been able to move the needle in our store traffic as well as our online traffic.

有趣的是，正如我們在 Enlite 發布、Nulux Fast And Free 發布以及重要的 This Is Yoga 計劃或活動中執行的那樣，我們已經看到這些活動能夠在我們的商店流量中起到推動作用以及我們的在線流量。

But what we've taken away from that is that it's actually possible for us to effect store traffic positively when we have compelling product and brand stories and events.

但我們從中得出的結論是，當我們擁有引人入勝的產品和品牌故事和事件時，我們實際上有可能對商店流量產生積極影響。

So we're taking those learnings forward.

因此，我們正在推進這些學習。

We believe it creates interesting opportunity for us as we look forward.

我們相信，在我們期待的過程中，它為我們創造了有趣的機會。

And as we think about KPIs generally, that improvement, sequential improvement in store traffic, still negative, still a headwind but sequentially better in the latter part of Q1 into the early part of Q2 is also being supported by improvements in conversion and UPTs in our stores, that is supplementing or complementing the continued strength in AURs.

當我們普遍考慮 KPI 時，商店客流量的連續改善仍然是負面的，仍然是逆風，但在第一季度後期到第二季度早期的連續改善也得到了我們在轉化率和 UPT 改善方面的支持。商店，這是對 AUR 持續實力的補充或補充。

Ultimately, we need to see a balanced picture across all of our store KPIs to have a sustainable comp picture.

最終，我們需要在我們所有的商店 KPI 中看到一個平衡的畫面，以獲得可持續的組合畫面。

So we've relied heavily on AUR up to this point, we still see strong AUR performance, but it's really important to see conversion, UPT and -- in a better place and also traffic improving.

因此，到目前為止，我們一直嚴重依賴 AUR，我們仍然看到了強大的 AUR 性能，但看到轉化率、UPT 以及——在更好的地方以及流量的改善非常重要。

So thanks for your question on store traffic.

感謝您提出關於商店流量的問題。

The next question's from Omar Saad with Evercore ISI.

下一個問題來自與 Evercore ISI 的 Omar Saad。

I wanted to actually focus on the decision to accelerate the international openings, Asia versus Europe, and is it kind of more a fill-in of the existing kind of trade areas?

我想真正關注加速國際開放的決定，亞洲與歐洲，這是否更像是對現有貿易領域的補充？

Are you expanding into new trade areas and markets?

您是否正在向新的貿易領域和市場擴張？

And what are you seeing in those markets that's giving you the confidence to do -- to pull that lever and press on the gas at this point?

你在那些市場中看到了什麼讓你有信心去做——在這一點上拉動槓桿並踩油門？

Is it online demand that you're seeing?

您看到的是在線需求嗎？

Or store level demand, or is it the showrooms, what you're learning from those?

或者商店層面的需求，或者是陳列室，你從中學到了什麼？

I think this is probably a pretty important part of the equation for you guys over the next few years.

我認為這可能是未來幾年你們等式中非常重要的一部分。

Thanks, Omar.

謝謝，奧馬爾。

I think it's all of the above.

我想就是以上所有。

I mean, we're obviously seeing the opportunity and the scale of the opportunity in Asia, and we're seeing great momentum there.

我的意思是，我們顯然看到了亞洲的機會和機會的規模，而且我們在那裡看到了巨大的發展勢頭。

So whether it's our Tmall business doubling in less than 3 quarters, or whether it's store opening in the couple of -- first month at $1,600 a square foot, or the activity that we see on social or with the events that we're rolling out.

因此，無論是我們的天貓業務在不到 3 個季度內翻了一番，還是在第一個月以每平方英尺 1,600 美元的價格開店，或者我們在社交上看到的活動或我們正在推出的活動中.

I mean, that obviously gives us great confidence in our ability to accelerate our store openings in Asia, mostly in China.

我的意思是，這顯然讓我們對加快在亞洲（主要是在中國）開店的能力充滿信心。

But it's also, honestly I mean, the ability to secure outstanding locations.

但老實說，這也是確保優秀地點的能力。

So if you think about the store that we're about to open in Tokyo, within Ginza Six, or the locations that we've been able to open in Xintiandi in Shanghai, and in Beijing, I mean that obviously, we're not -- the pace of the openings is in no way jeopardizing the quality of the locations, that's what we think.

因此，如果您考慮我們即將在東京、銀座六號內開設的商店，或者我們已經能夠在上海新天地和北京開設的地點，我的意思是，顯然，我們不是——開放的步伐絕不會危及地點的質量，這就是我們的想法。

So we see tremendous momentum in Asia, in Japan, in Hong Kong, in mainland China, as well as Singapore and Korea.

因此，我們在亞洲、日本、香港、中國大陸以及新加坡和韓國看到了巨大的發展勢頭。

And in Europe, we've grown 50% year-over-year, and it actually goes outside of London.

在歐洲，我們的年增長率為 50%，而且實際上在倫敦之外。

I mean, you see the performance of Brown Thomas in Dublin, which really gives us -- which really validates the work that we're doing in Europe, and that fact that the halo effect that it has beyond London.

我的意思是，你看到布朗托馬斯在都柏林的表現，它真的給了我們——這真的驗證了我們在歐洲所做的工作，以及它在倫敦以外的光環效應這一事實。

The next question's Kimberly Greenberger with Morgan Stanley.

下一個問題是金伯利格林伯格和摩根士丹利。

Stuart, my question's on digital marketing investments, and can you just give us a little more color on the second quarter investments and why you would characterize them as onetime?

斯圖爾特，我的問題是關於數字營銷投資的，你能否給我們更多關於第二季度投資的信息，以及為什麼你將它們描述為一次性？

Maybe if we understand a little bit better what those expenses are, we could get our heads around the onetime characterization.

也許如果我們能更好地了解這些費用是什麼，我們就可以了解一次性的特徵。

And then, secondarily, I would imagine that ivivva operates at a lower gross margin.

其次，我認為 ivivva 的毛利率較低。

So is there a permanent improvement in gross margin you expect to your business 1 to 2 years from the elimination of most of the ivivva business?

那麼，在消除大部分 ivivva 業務後，您預計 1 到 2 年您的業務的毛利率是否會永久提高？

Okay.

好的。

Okay, Kimberly.

好的，金伯利。

On the first question, the digital marketing investments, I would not include that as part of the onetime cost that we're referring to.

關於第一個問題，數字營銷投資，我不會將其作為我們所指的一次性成本的一部分。

What I am referring to are the technical design and development costs for the improvements to our website, that's one bucket.

我指的是改進我們網站的技術設計和開發成本，這是一個桶。

The second bucket is photography cost of outsourcing photography to a photography agency.

第二個桶是將攝影外包給攝影機構的攝影成本。

And the third bucket is the brand creative content support that we have from an agency we've also selected to help us with that.

第三個桶是我們從我們也選擇幫助我們的代理機構獲得的品牌創意內容支持。

And what I would say is, that what's creating much of the onetime nature of this, is the speed at which we're trying to accomplish these improvements and changes that we've identified we need to the website.

我想說的是，造成這種一次性性質的主要因素是我們試圖完成這些我們已經確定我們需要對網站進行改進和更改的速度。

There will be elements likely of the second and third buckets that we'll take forward, but not to the same order of magnitude that we're seeing right now, given just again, the time frame in which we're trying to accomplish these improvements.

我們可能會推進第二個和第三個桶的元素，但不會達到我們現在看到的相同數量級，再次給出我們試圖完成這些的時間框架改進。

So hopefully, that clarifies it.

所以希望，這可以澄清它。

The second question you had on ivivva, gross margin.

您對 ivivva 提出的第二個問題是毛利率。

Gross margins in ivivva are -- have not been as high as in lululemon.

ivivva 的毛利率沒有 lululemon 高。

I think that's safe to say.

我認為可以這麼說。

By reducing the mix of the ivivva overall, yes, that creates some benefit to the overall weighted average, if you will, gross margin that we'll have.

通過減少整體 ivivva 的組合，是的，如果你願意的話，這會給整體加權平均帶來一些好處，我們將擁有的毛利率。

The ivivva business will be a viable business that we're -- we still believe in, albeit on a smaller scale, and we also have specific strategies and plans in place to improve the product margin of the ivivva business as we'll take it forward as primarily an e-commerce business.

ivivva 業務將是一項可行的業務，我們仍然相信，儘管規模較小，我們也制定了具體的戰略和計劃來提高 ivivva 業務的產品利潤率，因為我們將採取它主要作為電子商務業務前進。

This concludes question-and-answer session.

問答環節到此結束。

I will now turn the conference back over to the presenters for any closing remarks.

我現在將把會議轉回給演講者，以便發表任何結束語。

All right.

好的。

Thanks, everybody.

謝謝大家。

This concludes today's conference call.

今天的電話會議到此結束。

You may disconnect your lines.

你可以斷開你的線路。

Thank you for participating and have a pleasant day.

感謝您的參與，祝您有愉快的一天。