Movado Group Inc (MOV) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to the Movado Group, Inc. Second Quarter 2023 Earnings Conference Call. As a reminder, today's call is being recorded and may not be reproduced in whole or in part without permission from the company.

大家好，歡迎參加摩凡陀集團 2023 年第二季度收益電話會議。提醒一下，今天的電話正在錄音中，未經公司許可，不得全部或部分複制。

At this time, I'd like to turn the conference over to Rachel Schacter of ICR. Please go ahead.

在這個時候，我想把會議交給 ICR 的 Rachel Schacter。請繼續。

Thank you. Good morning, everyone. With me on the call is Efraim Grinberg, Chairman and Chief Executive Officer; and Sallie DeMarsilis, Executive Vice President, Chief Operating Officer and Chief Financial Officer.

謝謝你。大家，早安。與我通話的是董事長兼首席執行官 Efraim Grinberg；以及執行副總裁、首席運營官兼首席財務官 Sallie DeMarsilis。

Before we get started, I would like to remind you the company's safe harbor language, which I'm sure you're all familiar with. The statements contained in this conference call, which are not historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in such statements due to a number of risks and uncertainties, all of which are described in the company's filings with the SEC, which includes today's press release. If any non-GAAP financial measure is used on this call, a presentation of the most directly comparable GAAP financial measure to this non-GAAP financial measure will be provided as supplemental financial information in our press release.

在我們開始之前，我想提醒您公司的安全港語言，我相信你們都熟悉。本次電話會議中包含的非歷史事實的陳述可能被視為構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。實際未來結果可能與此類陳述中建議的結果存在重大差異，原因是許多風險和不確定性，所有這些都在公司提交給美國證券交易委員會的文件中進行了描述，其中包括今天的新聞稿。如果在本次電話會議中使用了任何非公認會計原則財務指標，我們將在我們的新聞稿中提供與該非公認會計原則財務指標最直接可比的公認會計原則財務指標作為補充財務信息。

Now I'd like to turn the call over to Efraim Grinberg, Chairman and Chief Executive Officer of Movado Group.

現在我想把電話轉給摩凡陀集團董事長兼首席執行官 Efraim Grinberg。

Thank you, Rachel, and good morning and welcome to Movado Group's second quarter conference call. With me today is Sallie DeMarsilis, our COO and Chief Financial Officer. I will start by giving you a brief overview of our results, followed by an update on our strategic initiatives and brands, and then Sallie will review our financial results in greater detail. We would then be glad to answer any questions.

謝謝你，Rachel，早上好，歡迎來到摩凡陀集團第二季度電話會議。今天和我在一起的是我們的首席運營官兼首席財務官 Sallie DeMarsilis。首先，我將簡要概述我們的業績，然後介紹我們的戰略計劃和品牌的最新情況，然後 Sallie 將更詳細地審查我們的財務業績。我們很樂意回答任何問題。

In an increasingly volatile global economic environment, we are very pleased with our overall results. Facing significant currency headwinds, our sales for the quarter grew by 5.1% and 10.5% on a constant currency basis. Our gross margin was 58.5% of sales, an increase of 190 basis points from last year. We delivered adjusted operating income of $31.4 million or 17.2% of sales versus $25.5 million or 14.6% of sales last year.

在日益動蕩的全球經濟環境中，我們對我們的整體業績感到非常滿意。面對重大的貨幣逆風，我們本季度的銷售額按固定匯率計算分別增長了 5.1% 和 10.5%。我們的毛利率為銷售額的 58.5%，比去年增加了 190 個基點。我們的調整後營業收入為 3140 萬美元，佔銷售額的 17.2%，而去年為 2550 萬美元，佔銷售額的 14.6%。

Adjusted EPS was $1.07 versus $0.85 last year. Additionally, our balance sheet remains strong with cash of $203 million at quarter end and no debt. Our teams around the world continue to execute against our plan while navigating a challenging environment with a higher level of uncertainty.

調整後每股收益為 1.07 美元，而去年為 0.85 美元。此外，我們的資產負債表依然強勁，季度末現金為 2.03 億美元，沒有債務。我們在世界各地的團隊繼續執行我們的計劃，同時在具有更高不確定性的具有挑戰性的環境中航行。

For the quarter, our sales -- our U.S. sales declined by 5.4%, while our international sales grew by 15.3% and 25.8% on a constant currency basis. In the U.S., we saw an increasingly difficult retail market impacted by rising inflation and the anniversarying of robust stimulus programs that benefited consumers in multiple income categories. We have also seen the slowing of the U.S. economy as the Fed increased rates in its effort to bring inflation under control.

本季度，我們的銷售額——我們的美國銷售額下降了 5.4%，而我們的國際銷售額增長了 15.3% 和 25.8%（按固定匯率計算）。在美國，我們看到零售市場日益困難，這受到通脹上升和強有力的刺激計劃週年紀念的影響，這些計劃使不同收入類別的消費者受益。隨著美聯儲提高利率以控制通脹，我們還看到美國經濟放緩。

In our international markets where prior year results were less impacted by stimulus programs than in the U.S., we saw continued strong growth in our licensed brand performance, including the launch of Calvin Klein. As we look at our brands, we continue to effectively execute against the Movado brands elevation strategy. Movado sales for the quarter declined low single digits driven by slower retail in the United States, partially offset by the growth in our international business, particularly in India. We remain excited about the prospects of Movado as we continue to elevate both the product and the brand image.

在我們的國際市場，與美國相比，刺激計劃對上一年業績的影響較小，我們看到我們的授權品牌業績持續強勁增長，包括 Calvin Klein 的推出。在審視我們的品牌時，我們繼續有效地執行摩凡陀品牌提升戰略。由於美國零售業放緩，摩凡陀本季度銷售額下降了低個位數，部分被我們國際業務的增長所抵消，尤其是在印度。隨著我們繼續提升產品和品牌形象，我們仍然對摩凡陀的前景感到興奮。

In Movado, we saw strength in our higher-priced watches with the average retail price growing by 12% versus last year. Our Movado SE collection, which continues to perform extremely well both on our website and our wholesale distribution, will be further expanded for the fall with new colorways for men and women as well as the introduction of a women's automatic version.

在摩凡陀，我們看到了高價手錶的實力，平均零售價比去年增長了 12%。我們的 Movado SE 系列在我們的網站和批發分銷中繼續表現出色，秋季將進一步擴展，推出新的男女配色，並推出女士自動版。

In Bold, we introduced a new sport Verso family that has performed very well. For the fall, we are introducing new ceramic models in Bold as well as the new Bold Fusion Automatic. We're excited to be launching our first influencer program in September under the Movado Always In Motion theme, including influencers and artists who are the best at their crafts, from a gold medal Olympian skier to a ceramicist who are at the top of their game. This campaign will run through the holiday season in addition to our television advertising. We will also introduce a new Bold TV commercial that we are very excited about.

在 Bold 中，我們引入了表現非常出色的新運動 Verso 系列。秋季，我們將推出新的 Bold 陶瓷模型以及新的 Bold Fusion Automatic。我們很高興能夠在 9 月以摩凡陀 Always In Motion 為主題推出我們的第一個影響者計劃，其中包括最擅長手藝的影響者和藝術家，從奧運滑雪金牌得主到在比賽中處於領先地位的陶藝家.除了我們的電視廣告外，該活動還將貫穿整個假期。我們還將推出一個我們非常興奮的新 Bold 電視廣告。

Digital trends were more challenging during the quarter with the slowing of the U.S. consumer and a return to a more normalized balance between brick-and-mortar and online shopping. As we look at our licensed brands, we saw growth across the portfolio, resulting in 14.8% growth during the quarter. Tommy Hilfiger watches and jewelry performed well for us driven by strength in Europe and India. Our campaign watch for him, Matthew, sold nicely driven by our 2-tone execution. For women, Libby, featuring a minimalistic sparkle dial, connected with the TH consumer. During the third quarter, we will drive performance with the launch of strong campaigns in Europe, Mexico, Brazil and India.

隨著美國消費者的放緩以及實體店和在線購物之間恢復到更加正常化的平衡，本季度的數字趨勢更具挑戰性。當我們查看我們的授權品牌時，我們看到整個產品組合都有增長，導致本季度增長 14.8%。在歐洲和印度的實力驅動下，Tommy Hilfiger 手錶和珠寶對我們來說表現良好。我們為他 Matthew 設計的競選手錶在我們的 2-tone 執行的推動下大賣。對於女性來說，Libby 採用簡約的閃光錶盤，與 TH 消費者相連。在第三季度，我們將通過在歐洲、墨西哥、巴西和印度推出強大的營銷活動來推動業績。

HUGO BOSS continued to grow in both our BOSS and HUGO labels. The BOSS parent brand has amplified their product and marketing message, and we are seeing the benefit. We saw strong sell-through in our Steer family for him and Novia for her. The BOSS brand is resonating with consumers as we partner with BOSS' stable of key influencers like Khaby Lame on TikTok and the rising Italian tennis star, Matteo Bertolini.

HUGO BOSS 在我們的 BOSS 和 HUGO 標籤中繼續增長。 BOSS 母品牌擴大了他們的產品和營銷信息，我們看到了好處。我們在 Steer 家族中看到了對他和 Novia 的強勁銷售。 BOSS 品牌正在與消費者產生共鳴，因為我們與 BOSS 穩定的主要影響者合作，如 TikTok 上的 Khaby Lame 和冉冉升起的意大利網球明星 Matteo Bertolini。

In Coach, our sales were driven by the continued focus on our ceramic collection, Greyson, with the pink version being worn by Jennifer Lopez in the parent brand's ad campaign on social media. The quarter for Coach watches was challenged by COVID closures in China, but we are already beginning to see a nice bounce-back in that market.

在 Coach，我們的銷售受到持續關注我們的陶瓷系列 Greyson 的推動，Jennifer Lopez 在社交媒體上的母品牌廣告活動中穿著粉色版本。 Coach 手錶的季度在中國受到 COVID 關閉的挑戰，但我們已經開始看到該市場的良好反彈。

We have seen continued strength in Lacoste with strong performances in our Replay family for him, while the iconic 12.12 remains our biggest family in the brand. We're excited to introduce the third generation of the 12.12 this coming fall. For the launch, we are planning a strong marketing program in Lacoste's home market of France beginning in September. We expect to begin the launch of Lacoste jewelry during the fourth quarter.

我們看到了 Lacoste 的持續實力，他在我們的 Replay 系列中表現出色，而標誌性的 12.12 仍然是我們品牌中最大的系列。我們很高興在即將到來的秋季推出第三代 12.12。對於此次發布，我們計劃從 9 月開始在 Lacoste 的法國本土市場開展一項強有力的營銷計劃。我們預計將在第四季度開始推出 Lacoste 珠寶。

We are excited by our launch of Calvin Klein in both jewelry and watches, which began early this year and has exceeded our initial expectations. To date, we have opened over 1,500 retail doors as well as several key online retailers on a global basis. Watches represent approximately 75% of the sales with men's watches at 30% of sales and women's at 70%. Products that feature iconic CK branding make up about 20% of the business. During the second half of the year, we will amplify our marketing message in key markets in Europe with both digital programs and billboards and a digital launch in China. We're really excited by the initial reception that CK has received across our distribution network.

我們對 Calvin Klein 在珠寶和手錶方面的推出感到興奮，該產品於今年年初開始，超出了我們最初的預期。迄今為止，我們已經在全球範圍內開設了 1,500 多家零售店以及多家主要在線零售商。手錶約佔銷售額的 75%，男士手錶佔銷售額的 30%，女士手錶佔 70%。具有標誌性 CK 品牌的產品約佔業務的 20%。在下半年，我們將通過數字節目和廣告牌以及在中國的數字發布來擴大我們在歐洲主要市場的營銷信息。我們對 CK 在我們的分銷網絡中獲得的初步好評感到非常興奮。

In our outlet division, we saw single-digit growth with digital growth partly offset by a decline in our brick-and-mortar business. During the quarter, we saw challenging traffic trends driven by higher gas prices and inflationary pressures. We're already seeing traffic and business trends improve in our stores in -- early in the third quarter.

在我們的奧特萊斯部門，我們看到了個位數的增長，數字增長部分被我們實體業務的下降所抵消。在本季度，我們看到由較高的天然氣價格和通脹壓力推動的具有挑戰性的交通趨勢。在第三季度初，我們已經看到我們商店的客流量和業務趨勢有所改善。

In Olivia Burton, we are focused on invigorating our product assortment and updating our marketing message. We're excited by the progress that our team is making, and we are focused on making great new iconic Olivia Burton products with several new introductions this fall, but with the bulk of our introductions coming throughout the next year.

在 Olivia Burton，我們專注於豐富我們的產品組合併更新我們的營銷信息。我們對我們團隊取得的進展感到興奮，我們專注於製作偉大的新標誌性 Olivia Burton 產品，今年秋天推出了幾款新產品，但我們的大部分產品將在明年推出。

In MVMT, our team is focused on continuing to elevate the product and fine-tuning our marketing message as we head into the fall. As you know, we have put in place a new leadership team in MVMT, and we are already seeing progress in the evolution of the MVMT brand both on product and marketing. We are rounding out the team and are excited about the future opportunities for MVMT to grow with beautifully designed iconic products marketed in an evolving digital landscape.

在 MVMT 中，我們的團隊專注於在進入秋季時繼續提升產品並微調我們的營銷信息。如您所知，我們已經在 MVMT 中建立了一個新的領導團隊，我們已經看到 MVMT 品牌在產品和營銷方面的發展取得了進展。我們正在完善團隊，並對 MVMT 未來的發展機會感到興奮，這些產品設計精美，標誌性產品在不斷發展的數字環境中銷售。

While there is increased uncertainty in the economic environment, we are very pleased with how our teams have adjusted and executed against our strategic plans. As we look at the second half of the year, we believe that we will need to continue to execute in an uncertain environment, including facing the impact of unfavorable currency due to the strengthening of the U.S. dollar. With our strong brand portfolio, amplified design innovation and effective marketing support, we will continue to deliver against the available opportunities while investing in our brands for the long term.

雖然經濟環境的不確定性增加，但我們對我們的團隊如何根據我們的戰略計劃進行調整和執行感到非常滿意。展望下半年，我們認為我們將需要在不確定的環境中繼續執行，包括面臨美元走強導致的不利貨幣的影響。憑藉我們強大的品牌組合、擴大的設計創新和有效的營銷支持，我們將繼續把握現有機會，同時對我們的品牌進行長期投資。

I would now like to turn the call over to Sallie, who will cover our financial results in greater detail.

我現在想將電話轉給 Sallie，她將更詳細地介紹我們的財務業績。

Thank you, Efraim, and good morning, everyone. For today's call, I will review our financial results for the second quarter and year-to-date period of fiscal 2023, and then I will provide an update on our outlook for the year. My comments today will focus on adjusted results. Please refer to the description of all of the special items included in our results for the second quarter and year-to-date period of fiscal 2023 and fiscal 2022 in our press release issued earlier today, which also includes a reconciliation table of GAAP and non-GAAP measures.

謝謝你，Efraim，大家早上好。在今天的電話會議中，我將回顧我們 2023 財年第二季度和年初至今的財務業績，然後我將提供年度展望的最新信息。我今天的評論將集中在調整後的結果上。請參閱我們今天早些時候發布的新聞稿中對 2023 財年和 2022 財年第二季度和年初至今業績中包含的所有特殊項目的描述，其中還包括 GAAP 和非-GAAP 措施。

Overall, our performance for the second quarter of fiscal 2023 continued to be strong. Sales were $182.8 million as compared to $173.9 million last year, an increase of 5.1%, which exceeded our expectations of 2% to 4% growth. In constant dollars, the increase in net sales was 10.5%. Net sales increased across our licensed brands and company stores, partially offset by a decrease in our owned brands.

總體而言，我們在 2023 財年第二季度的表現繼續強勁。與去年的 1.739 億美元相比，銷售額為 1.828 億美元，增長 5.1%，超出了我們預期的 2% 至 4% 的增長。按固定美元計算，淨銷售額增長 10.5%。我們授權品牌和公司商店的淨銷售額增加，部分被我們自有品牌的減少所抵消。

U.S. net sales decreased 5.4%. As Efraim mentioned, the retail market in the U.S. was difficult as we anniversaried last year's stimulus and continue to see the effect this year of increased inflation on the consumer in addition to slowing domestic growth, all of which creates a challenging comparison year-over-year. International net sales increased 15.3% as compared to the second quarter of last year. On a constant currency basis, international net sales grew by 25.8%. We saw strong trends, especially in Latin America, India and Europe.

美國淨銷售額下降 5.4%。正如 Efraim 所提到的，美國的零售市場很艱難，因為我們是在去年的刺激措施週年紀念日，並且除了國內增長放緩之外，今年通脹上升對消費者的影響仍在繼續，所有這些都造成了與去年同期相比的挑戰性。年。與去年第二季度相比，國際淨銷售額增長了 15.3%。按固定匯率計算，國際淨銷售額增長了 25.8%。我們看到了強勁的趨勢，尤其是在拉丁美洲、印度和歐洲。

Gross profit as a percent of sales expanded to 58.5% compared to 56.6% in the second quarter of last year. The increase in gross margin was primarily driven by favorable channel and product mix, partially offset by the unfavorable impact of foreign currency exchange rates. Operating expenses were $75.6 million as compared to $73 million for the same period of last year. The increase was driven by higher marketing expenses and general operating expenses that directly support the increase in sales. This was partially offset by a decrease in performance-based compensation.

毛利潤佔銷售額的百分比從去年第二季度的 56.6% 擴大到 58.5%。毛利率的增長主要是由於有利的渠道和產品組合，部分被外匯匯率的不利影響所抵消。運營費用為 7560 萬美元，而去年同期為 7300 萬美元。這一增長是由直接支持銷售額增長的營銷費用和一般運營費用的增加推動的。這部分被基於績效的薪酬減少所抵消。

As a percent of sales, operating expenses for the quarter decreased to 41.3% from 42% in the second quarter of last year. Expansion in gross margin and controlled spending in the second quarter drove a $5.9 million increase in operating income to $31.4 million as compared to $25.5 million in the second quarter of fiscal 2022. We reported income tax expense of $6.6 million in the second quarter of fiscal 2023 as compared to $5.5 million in the second quarter of fiscal 2022. Net income in the second quarter was $24.6 million or $1.07 per diluted share as compared to $20.1 million or $0.85 per diluted share in the year ago period.

作為銷售額的百分比，本季度的運營費用從去年第二季度的 42% 下降至 41.3%。第二季度毛利率的擴大和控制支出推動營業收入增加 590 萬美元，達到 3140 萬美元，而 2022 財年第二季度為 2550 萬美元。我們報告 2023 財年第二季度的所得稅費用為 660 萬美元與 2022 財年第二季度的 550 萬美元相比。第二季度的淨收入為 2460 萬美元或稀釋後每股收益 1.07 美元，而去年同期為 2010 萬美元或稀釋後每股收益 0.85 美元。

Now turning to our year-to-date results. Sales for the 6-month period ended July 31, 2022, were $346.2 million as compared to $308.7 million last year. Total net sales increased 12.2% as compared to the 6-month period of fiscal 2022. In constant dollars, the increase in net sales was 16.5%. International sales increased 24.1% or 32.6% on a constant currency basis. U.S. net sales declined 5.2%. Gross profit was $203.6 million or 58.8% of sales as compared to $172.7 million or 55.9% of sales last year. The increase in gross margin rate for the first 6 months was primarily due to favorable channel and product mix.

現在轉向我們年初至今的結果。截至 2022 年 7 月 31 日的 6 個月期間的銷售額為 3.462 億美元，而去年為 3.087 億美元。與 2022 財年的 6 個月期間相比，總淨銷售額增長了 12.2%。按固定美元計算，淨銷售額增長了 16.5%。按固定匯率計算，國際銷售額增長 24.1% 或 32.6%。美國淨銷售額下降 5.2%。毛利潤為 2.036 億美元，佔銷售額的 58.8%，而去年為 1.727 億美元，佔銷售額的 55.9%。前 6 個月毛利率的上升主要是由於有利的渠道和產品組合。

For the 6 months ended July 31, 2022, operating income was $57.4 million as compared to $39.6 million in fiscal 2022. As a percent of net sales, operating income was 16.6% in the first half of fiscal 2023 as compared to 12.8% in the first half of fiscal 2022. Net income was $43.7 million or $1.89 per diluted share as compared to $30.2 million or $1.27 per diluted share in the year ago period.

截至 2022 年 7 月 31 日的 6 個月，營業收入為 5740 萬美元，而 2022 財年為 3960 萬美元。占淨銷售額的百分比，2023 財年上半年的營業收入為 16.6%，而 2022 財年上半年為 12.8% 2022 財年上半年。淨收入為 4370 萬美元或稀釋後每股收益 1.89 美元，而去年同期為 3020 萬美元或稀釋後每股收益 1.27 美元。

Now turning to our balance sheet. Cash at the end of the second quarter was $203.1 million as compared to $199.7 million at the same period of last year. Accounts receivable was $100.7 million, up $11 million from the same period of last year, primarily due to the increase in sales. Inventory at the end of the quarter was up $31.7 million or 17.3%, above the same period of last year, primarily due to the timing of receipts and the addition of the Calvin Klein brand to our portfolio.

現在轉向我們的資產負債表。第二季度末的現金為 2.031 億美元，而去年同期為 1.997 億美元。應收賬款為 1.007 億美元，比去年同期增加 1100 萬美元，主要是由於銷售額的增加。本季度末的庫存增加了 3170 萬美元或 17.3%，高於去年同期，這主要是由於收貨時間和 Calvin Klein 品牌添加到我們的產品組合中。

In the first half of fiscal 2023, we repurchased approximately $21.5 million or 587,000 shares under our share repurchase program. Capital expenditures for the 6-month period were $3 million, and depreciation and amortization expense was $5.6 million, which included $1.4 million related to the amortization of acquired intangible assets of Olivia Burton and MVMT.

在 2023 財年上半年，我們根據股票回購計劃回購了約 2150 萬美元或 587,000 股股票。 6 個月期間的資本支出為 300 萬美元，折舊和攤銷費用為 560 萬美元，其中包括與 Olivia Burton 和 MVMT 收購的無形資產攤銷有關的 140 萬美元。

Now I would like to discuss our outlook. While we had a strong start to the fiscal year, we recognize that we are operating in a challenging environment. Our net sales are currently expected to be in a range of $780 million to $790 million, which is below the midpoint of the previous outlook range of $780 million to $800 million. This is primarily driven by the impact of currency headwinds due to the strengthening of the U.S. dollar. We continue to expect gross profit of approximately 58% of sales. Given the strong first half, we currently expect operating income at the high end of our outlook range of $125 million to $130 million. And we continue to anticipate a 25% effective tax rate.

現在我想談談我們的前景。雖然我們在本財年有一個強勁的開端，但我們認識到我們在充滿挑戰的環境中運營。我們目前的淨銷售額預計在 7.8 億美元至 7.9 億美元之間，低於之前預期範圍 7.8 億美元至 8 億美元的中點。這主要是由於美元走強導致的貨幣逆風影響。我們繼續預計毛利潤約為銷售額的 58%。鑑於上半年強勁，我們目前預計營業收入處於我們展望範圍的高端，為 1.25 億美元至 1.3 億美元。我們繼續預計有效稅率為 25%。

I would now like to open the call up for questions.

我現在想打開電話提問。

(Operator Instructions) Our first question today is coming from Oliver Chen from Cowen.

（操作員說明）我們今天的第一個問題來自 Cowen 的 Oliver Chen。

The U.S. experiencing those negative trends, does your guidance include a continuation of that happening? And given that, that -- it was negative, how are the inventories of that channel and the freshness of the inventories? I would also love you to elaborate on that outlet traffic. It sounded like a caution point.

美國正在經歷這些負面趨勢，您的指導是否包括這種情況的延續？考慮到這一點，那是負面的，該渠道的庫存和庫存的新鮮度如何？我也希望您詳細說明該出口流量。這聽起來像是一個警告點。

Sure. So on both of those, yes, our outlook does factor that there's going to be continued weakness in the U.S. and I think really due to 2 factors: one is the inflation, and two is the continued lapping of stimulus that -- on the consumer that really did occur throughout the year last year and probably ends at the end of December.

當然。因此，在這兩個方面，是的，我們的前景確實考慮到美國將持續疲軟，我認為這實際上是由於兩個因素：一個是通貨膨脹，二是對消費者的持續刺激這確實發生在去年全年，可能在 12 月底結束。

On the traffic front, we've always seen traffic challenged in outlets when gas prices are high. We have seen an improvement over the last month, as I said in my comment in both traffic patterns and business in our brick-and-mortar locations. And that business is still performing extremely well, and we're very pleased with it. But I do think that when you do see higher gas prices, those are generally destinations and you -- and less people will drive to those destinations.

在交通方面，當汽油價格很高時，我們總是看到出口處的交通受到挑戰。正如我在評論我們實體店的流量模式和業務時所說的那樣，我們在上個月看到了進步。而且該業務的表現仍然非常好，我們對此感到非常滿意。但我確實認為，當你確實看到更高的汽油價格時，這些通常是目的地和你——很少有人會開車去這些目的地。

I think on the inventory front, retailers have been very cautious on inventory levels and -- so inventory is pretty clean at the point of sale. Our inventory is very fresh. And you have to remember that our inventory is not seasonal. It is not -- it is long-lasting as a rule. And so I think we're in pretty good shape on that front.

我認為在庫存方面，零售商對庫存水平非常謹慎，因此銷售點的庫存非常乾淨。我們的庫存非常新鮮。您必須記住，我們的庫存不是季節性的。它不是——它通常是持久的。所以我認為我們在這方面的狀態非常好。

Okay. And on the U.S. side, it's been really dynamic. We've seen a worse July than June, but kind of better back half of July. What are you thinking with pricing trends in light of the negative trends in the U.S.? And do you expect the U.S. market to get worse or better or stay at the rate you're seeing it now?

好的。在美國方面，它非常活躍。我們看到 7 月的情況比 6 月更糟，但 7 月後半月的情況要好一些。鑑於美國的負面趨勢，您對定價趨勢有何看法？你認為美國市場會變得更糟還是更好，或者保持你現在看到的速度？

I think what I look is that we're returning to more normalized trends. And so we had a big boom last year in the U.S. based on all of the economic actions, low interest rate, stimulus that were taking place. And so if you look at most of our numbers against 2019, which is the last pre-pandemic year, I would expect that they'll be better than that, and they have been better than that.

我認為我所看到的是我們正在回歸更正常化的趨勢。因此，基於所有正在發生的經濟行動、低利率和刺激措施，我們去年在美國出現了巨大的繁榮。因此，如果您查看我們針對 2019 年（大流行前的最後一年）的大部分數據，我預計它們會比那更好，而且它們已經比那更好。

So within a more normalized environment and one that's not being made highly liquid by government actions, the business is performing well and will continue to perform really well. So I think it's important to look at trends against that kind of an environment.

因此，在一個更加規範化的環境中，並且在政府行動沒有提高流動性的情況下，該業務表現良好，並將繼續表現良好。所以我認為在這種環境下觀察趨勢很重要。

Okay. And another cautious factor we're monitoring is Europe at large and recession risk and things getting worse there as well. You had really robust global numbers, but what are you seeing in those markets? And are you concerned that trends will slow or not?

好的。我們正在監測的另一個謹慎因素是整個歐洲和衰退風險以及那裡的情況也在惡化。您擁有非常強勁的全球數據，但您在這些市場中看到了什麼？您是否擔心趨勢會放緩？

I think we're -- overall, we're pleased -- we're really pleased with our performance in Europe as -- my experience also leads me to believe Europe doesn't get the highs and the lows that we do in this country. And although you are seeing already some economic challenges in countries like the U.K., part of that also has to do with their separation from the EU. We're seeing robust growth, for example, in our digital -- in some of our digital businesses in Europe and then also in travel retail, which had virtually disappeared for about an 18-month period and is now beginning to return as a real business.

我認為我們 - 總的來說，我們很高興 - 我們對我們在歐洲的表現感到非常滿意 - 我的經驗也讓我相信歐洲沒有達到我們在這方面所做的高點和低點國家。儘管您已經在英國等國家看到了一些經濟挑戰，但其中一部分也與它們與歐盟的分離有關。我們看到了強勁的增長，例如我們的數字業務——我們在歐洲的一些數字業務，然後是旅遊零售，這些業務幾乎消失了大約 18 個月，現在開始以真正的形式回歸商業。

Okay. And then on everyone's mind, of course, and as you mentioned, is this -- the inflation topic, yet you had some pretty impressive average unit retail performance. How would you characterize your portfolio in terms of inflation? And what are you doing with pricing? And it probably manifested differently across your portfolio.

好的。然後在每個人的腦海中，當然，正如你所提到的，這是通貨膨脹的話題，但你有一些相當令人印象深刻的平均單位零售業績。您如何根據通貨膨脹來描述您的投資組合？你對定價做了什麼？它可能在你的投資組合中表現得不同。

So we did take early in the year some selective price increases to offset inflation both on the operating side and on the cost side. I think we're seeing the results of that in our strong gross margins that we delivered in the quarter. I think with -- as the environment becomes more challenging, I think, obviously, price increases become more challenging as well. But costs will eventually moderate as well also. And you're starting to see that with hiring, in areas like that. While there's still a lot of open positions both at our company and in this country, we're seeing more candidates, for example, than we had been in -- late last year.

因此，我們確實在年初採取了一些選擇性的價格上漲來抵消運營方面和成本方面的通脹。我認為我們在本季度實現的強勁毛利率中看到了這一結果。我認為隨著環境變得更具挑戰性，我認為顯然，價格上漲也變得更具挑戰性。但成本最終也會放緩。在類似的領域，你開始在招聘中看到這一點。雖然我們公司和這個國家仍有很多空缺職位，但我們看到的候選人比去年年底更多。

And Sallie, it looks like the guide -- the tweak in guidance is largely on FX. Could you help us understand the embedded FX impact on the gross margin line for the back half in guidance and what we should know about the magnitude of FX on the top line? And second question, Sallie, will mix and channel continue to be helpful to the gross margin in the back half as we model that?

Sallie，它看起來像指南——指南的調整主要是在 FX 上。您能否幫助我們了解嵌入式外匯對指導後半部分毛利率線的影響，以及我們應該了解的外彙在頂線上的幅度？第二個問題，Sallie，在我們建模時，混合和渠道是否會繼續對後半部分的毛利率有所幫助？

Okay. So let me start on the top line with revenue. That is the key factor in us tightening the range is due to the continuing strengthening of the U.S. dollar. And we do have such a global business that it's pretty critical for us to try to call that out to you all. As it relates to gross margin, that does also impact our gross margin. So the fact that our gross margin rate continues to be strong at 58% but stay at 58%, there was also a piece of that related to the impact of currency on our gross margin rate.

好的。因此，讓我從收入開始。這是我們收緊區間的關鍵因素是由於美元持續走強。我們確實擁有如此全球性的業務，因此嘗試向你們所有人呼籲這一點對我們來說非常重要。由於它與毛利率有關，這也會影響我們的毛利率。因此，我們的毛利率繼續保持在 58% 的強勁水平，但仍保持在 58%，這也與貨幣對我們毛利率的影響有關。

As for mix, we will look at that. We are looking at that continuing in this challenging environment with the blend of the U.S. business versus the international as well as the direct-to-consumer and outlet. So all of that gets blended together and has us continued to be a relatively steady gross margin rate with a very complex calculation to get there.

至於混合，我們會看看。我們正在考慮在這個充滿挑戰的環境中繼續這種情況，美國業務與國際業務以及直接面向消費者和出口的業務相結合。因此，所有這些都融合在一起，讓我們繼續保持相對穩定的毛利率，並通過非常複雜的計算來實現這一目標。

Okay. And your balance sheet is -- seems really healthy. What's on your prioritization list? Could a special dividend be in the realm of what you're thinking? Would love to hear key priorities in terms of capitalization and returns to shareholders.

好的。你的資產負債表——看起來真的很健康。你的優先級列表上有什麼？特別股息可以在你所想的範圍內嗎？希望聽到在資本化和股東回報方面的關鍵優先事項。

Well, I think we have both, we believe, a healthy dividend in place and intend to continue that. Obviously, we evaluate it based on our overall cash position. And generally, in the second half of the year, we generate a lot more cash than in the first half of the year. And then the other part is we also have a share repurchase plan in place that we've executed fairly well against the -- in the first half of the year, and I would expect that we will continue to repurchase shares throughout the second half of the year.

好吧，我認為我們都擁有，我們相信，一個健康的紅利，並打算繼續這一點。顯然，我們根據我們的整體現金狀況對其進行評估。一般來說，在下半年，我們產生的現金比上半年要多得多。然後另一部分是我們也有一個股票回購計劃，我們在今年上半年執行得相當好，我預計我們將在下半年繼續回購股票那一年。

Okay. And Efraim, on the Calvin Klein business, so far, what have been your biggest surprises and/or tweaks you've made as you've executed that part of the innovative business? It's a really great brand.

好的。 Efraim，就 Calvin Klein 的業務而言，到目前為止，在執行創新業務的那一部分時，您最大的驚喜和/或調整是什麼？這是一個非常棒的品牌。

Yes. Look, it's a fabulous brand. It has global brand recognition. It's one of the big brands. We're really pleased to partner with them. We've seen robust international placement of both watches and jewelry between the Middle East and Europe and parts of Asia. China has gotten off to a slower start and not due to anything other than the fact that they obviously had substantial closures during the first half of the year due to COVID. And then we've seen also robust reception to the product, probably more than we expected in Latin America and pretty strong sell-through results there.

是的。看，這是一個了不起的品牌。它具有全球品牌知名度。它是大品牌之一。我們真的很高興與他們合作。我們已經看到手錶和珠寶在中東和歐洲以及亞洲部分地區之間的強勁國際佈局。中國的起步較慢，這不是因為他們在今年上半年明顯因新冠疫情而大量關閉。然後我們也看到了對該產品的強烈歡迎，可能超過了我們在拉丁美洲的預期，並且那裡的銷售結果相當強勁。

So I think everything is working according to plan. What you always do is you -- when you introduce a new brand, you learn from just the product that you introduced. You fine-tune the product assortment as you grow the business. But we're as excited, if not more excited, about it today than we were when we first signed the license.

所以我認為一切都在按計劃進行。你總是做的是你——當你介紹一個新品牌時，你只從你介紹的產品中學習。隨著業務的發展，您可以微調產品分類。但是，與我們第一次簽署許可證時相比，我們今天對此感到興奮，甚至更加興奮。

Okay. And last question, marketing as a percentage of sales, how are you thinking about that? What we've been seeing is a certain degree of digital disruption and fluctuation in customer acquisition costs, particularly with the Apple iOS changes as well as some of the Google algorithm changes. So would love your take on that, also as you think digitally and use some of the best practices at MVMT as well.

好的。最後一個問題，營銷佔銷售額的百分比，您對此有何看法？我們所看到的是一定程度的數字中斷和客戶獲取成本的波動，尤其是隨著 Apple iOS 的變化以及谷歌算法的一些變化。因此，您會喜歡您對此的看法，以及您以數字方式思考並使用 MVMT 的一些最佳實踐。

Sure. So most of those changes came in place during the last year. And so you -- now as we go into the second half of the year, we're in a market where those -- a lot of those IOs, the privacy changes were already in place for the second half of last year. I think what we're also recognizing in some of the learnings, for example, that we got from MVMT is the success of our influencer campaign. So we're launching a major one with Movado this second half. That really is aimed at what we call the top of the funnel and continuing to build aspirational brand image for the brands. So we're excited about that as we progress.

當然。因此，大多數這些變化都是在去年發生的。所以你——現在我們進入下半年，我們所處的市場——很多 IO，去年下半年的隱私變化已經到位。我認為我們在一些學習中也認識到，例如，我們從 MVMT 獲得的是我們的影響者活動的成功。因此，我們將在下半年推出一款與摩凡陀合作的主要產品。這真的是針對我們所說的漏斗頂端，並繼續為品牌建立理想的品牌形象。因此，隨著我們的進步，我們對此感到興奮。

One of the things that you do need to do in today's day and age is produce a lot more content for each of your brands, and our team has gotten really adept at doing that. As you know, we've also had a new Chief Marketing Officer join us and I think will be integral to that effort as we move forward.

在當今時代，您需要做的一件事就是為您的每個品牌製作更多內容，而我們的團隊已經非常擅長這樣做。如您所知，我們還有一位新的首席營銷官加入我們，我認為隨著我們的前進，這將是這項工作不可或缺的一部分。

We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Efraim for any further or closing comments.

我們的問答環節已經結束。我想將發言權轉回給 Efraim，以獲取任何進一步的或結束的評論。

Okay. I'd like to thank all of you for joining us today and wish you a very good end of the summer and a final holiday weekend next weekend. Thank you again, and we look forward to joining you for our third quarter conference call.

好的。我要感謝大家今天加入我們，並祝愿你們度過一個愉快的夏天和下週末的最後一個假期週末。再次感謝您，我們期待與您一起參加我們的第三季度電話會議。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝你。今天的電話會議和網絡直播到此結束。你可以在這個時候斷開你的線路，並有一個美好的一天。我們感謝您今天的參與。