Nature's Sunshine Products Inc (NATR) 2024 Q2 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's financial results for the second quarter ended June 30, 2024. Joining us today are Nature's Sunshine's CEO, Terrence Moorehead; CFO, Shane Jones; and General Counsel, Nate Brower. Following their remarks, we'll open the call for analyst questions.

大家下午好，感謝大家參加今天的電話會議，討論大自然陽光截至 2024 年 6 月 30 日的第二季財務業績。今天加入我們的是 Nature's Sunshine 的執行長 Terrence Moorehead；財務長肖恩瓊斯；和總法律顧問內特·布勞爾。在他們發表演說後，我們將開始徵求分析師提問。

Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Please go ahead.

在我們進一步討論之前，我想將電話轉給布勞爾先生，他正在閱讀該公司 1995 年《私人證券訴訟改革法案》含義內的安全港聲明，該聲明提供了有關前瞻性聲明的重要警告。請繼續。

Thank you. Good afternoon, and thanks for joining our conference call to discuss our second-quarter 2024 financial results. I'd like to remind everyone that this call is available for replay via telephonic dial-in through August 22 and via a live webcast that will be posted in the Investor Relations portion of our website at ir.naturessunshine.com. The information on this call contains forward-looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will, and other similar expressions.

謝謝。下午好，感謝您參加我們的電話會議，討論我們 2024 年第二季的財務表現。我想提醒大家，本次電話會議可在 8 月 22 日之前透過電話撥入重播，也可透過網路直播重播，網路直播將發佈在我們網站 ir.naturessunshine.com 的投資者關係部分。本次電話會議的資訊包含前瞻性陳述。這些陳述通常以相信、希望、可能、預期、期望、意願和其他類似表達方式等術語為特徵。

Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include, but are not limited to, those factors disclosed in the company's annual report on Form 10-K under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein.

前瞻性陳述並非對未來績效的保證，實際結果可能與前瞻性陳述所暗示的結果有重大差異。可能導致結果與本文暗示的結果有重大差異的因素包括但不限於公司 10-K 表格年度報告中「風險因素」標題下揭露的因素以及向美國證券交易委員會提交的其他報告。本次電話會議中的資訊僅代表今天的情況，該公司不承擔更新此處提供的資訊的任何義務。

Now I would like to turn the call over to the CEO of Nature's Sunshine, Terrence Moorehead. Terrence?

現在我想將電話轉給自然陽光公司的執行長泰倫斯·摩爾黑德 (Terrence Moorehead)。泰倫斯？

Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today's call to discuss our second-quarter results. Today, I'll provide some context into our second-quarter performance and offer insights into how the business is progressing in the current environment. From there, Shane will take you through our financials in more detail.

謝謝你，內特，大家下午好。我要感謝您參加今天的電話會議，討論我們的第二季業績。今天，我將提供一些有關我們第二季度業績的背景信息，並提供有關業務在當前環境下進展的見解。從那裡，肖恩將帶您更詳細地了解我們的財務狀況。

I'd like to begin by saying that we continue to make progress on our global growth strategies, addressing near-term challenges, while driving change and creating new opportunities for the future. In the second quarter, net sales were $110.6 million, down 3% on a local currency basis, driven by continued macroeconomic headwinds in Asia Pacific, a temporary disruption to our North American business, and a tough comparison versus last year, which was one of the strongest quarters in the company's 52-year history.

首先我想說，我們繼續在全球成長策略上取得進展，應對近期挑戰，同時推動變革並為未來創造新機會。第二季度，淨銷售額為 1.106 億美元，以當地貨幣計算下降 3%，原因是亞太地區宏觀經濟持續不利、北美業務暫時中斷，以及與去年相比情況嚴峻（這是原因之一）。是該公司52 年歷史上最強勁的季度。

Coming into the quarter, we knew we'd be facing some new challenges as macroeconomic headwinds, foreign exchange, and waning consumer confidence in Asia, especially China, continued to intensify. Similarly, in North America, the macroeconomic environment led consumers to be more careful with their spending as persistent inflation slowed consumer demand. The change in consumer landscape motivated us to further improve our competitiveness, upgrade capabilities, and find new ways to doing business with Nature's Sunshine easier and more attractive.

進入本季度，我們知道，隨著宏觀經濟逆風、外匯和亞洲（尤其是中國）消費者信心的減弱，我們將面臨一些新的挑戰。同樣，在北美，宏觀經濟環境導致消費者在支出上更加謹慎，因為持續的通貨膨脹減緩了消費者需求。消費格局的改變促使我們進一步提高競爭力，升級能力，尋找新的方式與自然陽光做生意，變得更容易、更有吸引力。

With that as a backdrop, in the second quarter, we made several meaningful changes to the business that we believe will boost our competitiveness and have significant positive impact on our long-term performance. While taking the important step to upgrade capabilities and realign our go-to-market approach has short-term implications, we firmly believe the actions we've taken will help build an important foundation for long-term profitable growth.

在此背景下，第二季我們對業務進行了幾項有意義的改變，我們相信這些改變將提高我們的競爭力並對我們的長期業績產生重大積極影響。雖然採取升級能力和重新調整我們的市場策略的重要步驟具有短期影響，但我們堅信我們所採取的行動將有助於為長期獲利成長奠定重要基礎。

To that end, we've taken three actions to improve our outlook. First, we upgraded and reimagined our digital platform in North America to strengthen our digital capabilities and mobile-first performance, which led to improved site load speeds, conversion rates, and stability. We also added new digital capabilities, like multiple payment methods and the potential to introduce next-gen capabilities like artificial intelligence and machine learning. This is an exciting and challenging migration. Second, we rebalanced our consumer proposition in several key Asia Pacific markets, placing a greater emphasis on consumer-friendly product packs that offer easy and accessible health solutions to drive customer growth and support repeat purchases. And finally, we took the initiative to streamline overhead and improve productivity by reducing over $5 million of annualized expenses in addition to the cost savings that we've previously communicated.

為此，我們採取了三項行動來改善我們的前景。首先，我們升級並重新構想了北美的數位平台，以增強我們的數位能力和行動優先效能，從而提高了網站載入速度、轉換率和穩定性。我們還添加了新的數位功能，例如多種支付方式以及引入人工智慧和機器學習等下一代功能的潛力。這是一次令人興奮且充滿挑戰的遷移。其次，我們重新平衡了亞太地區幾個主要市場的消費者主張，更加重視消費者友善產品包，提供簡單易用的健康解決方案，以推動客戶成長並支持重複購買。最後，除了我們之前提到的成本節約之外，我們還主動減少了超過 500 萬美元的年化開支，從而精簡了管理費用並提高了生產力。

I'd like to spend a few minutes briefly discussing each one of these actions in more detail. A closer look at our first action demonstrates our commitment to building a strong digital ecosystem in North America. As I mentioned earlier, in the second quarter, we upgraded our digital platform to improve performance and expand our capabilities. The change represents an important next step as we've now introduced a new mobile-first platform.

我想花幾分鐘時間更詳細地簡要討論其中的每一項操作。仔細觀察我們的第一個行動表明我們致力於在北美建立強大的數位生態系統。正如我之前提到的，在第二季度，我們升級了數位平台，以提高效能並擴展我們的能力。這項變更代表著重要的下一步，因為我們現在推出了新的行動優先平台。

Today, about 65% of our digital transactions occur on mobile devices. So the move to mobile-first is an important leap forward and an important component of our strategy to serve our distributors and customers better. In the first 45 days on the new site, we've already seen a positive impact. Load speeds are three times faster, conversion rates are up 20%, and digital sales increased 22% in the quarter, despite moving to the new platform and the new site.

如今，大約 65% 的數位交易發生在行動裝置上。因此，轉向行動優先是一個重要的飛躍，也是我們更好地為經銷商和客戶服務的策略的重要組成部分。在新網站上線的前 45 天內，我們已經看到了正面的影響。儘管遷移到了新平台和新網站，本季的載入速度提高了三倍，轉換率提高了 20%，數位銷售額成長了 22%。

Of course, since we introduced an entirely new digital platform, we expected to see some disruption to orders as the new site recalibrates and realigns with social media platforms and search algorithms, distributors and customers learn how to navigate the new site, and as we address any service issues associated with the launch.

當然，由於我們推出了全新的數位平台，隨著新網站重新校準和與社交媒體平台和搜尋演算法重新調整、分銷商和客戶學習如何瀏覽新網站以及我們解決的問題，我們預計訂單會出現一些中斷。

In the second quarter, North America sales were down 3% due to slower consumer spend from persistent macroeconomic pressure and from the expected temporary disruption to the business associated with the digital transformation. While the transformation offers better tools, better support, and a more powerful platform that will make it easier to do business with us, it will take some time for our nutritional health practitioners and specialty retailers to fully adapt to the new system. Based on our experience, our distributors will certainly want to ensure that their customers have an easy, seamless shopping experience and that they're getting the appropriate and accurate credit for their sales that they've generated before they fully commit.

第二季度，北美銷售額下降了 3%，原因是持續的宏觀經濟壓力以及預計與數位轉型相關的業務暫時中斷導致消費者支出放緩。雖然轉型提供了更好的工具、更好的支援和更強大的平台，使與我們開展業務變得更加容易，但我們的營養健康從業者和專業零售商需要一些時間才能完全適應新系統。根據我們的經驗，我們的經銷商當然希望確保他們的客戶擁有輕鬆、無縫的購物體驗，並確保他們在完全承諾之前所產生的銷售獲得適當和準確的信用。

With respect to our second action, focused on rebalancing the consumer proposition in Asia Pacific, we added more consumer-friendly product packs to help drive customer growth in an increasingly challenging macroeconomic environment. When combined with our Subscribe and Thrive auto-ship program, the strategy is expected to produce strong, sustainable growth. In the second quarter, we saw exactly what we expected in our top Asian markets, like Taiwan and Japan, that recently introduced the strategy. Strong growth in new customers and orders offset by a temporary decrease in average order size, which led to slightly lower sales growth in the short term. As the team continues to build customers and drive participation in Subscribe and Thrive, we expect to see strong growth in the future.

關於我們的第二項行動，重點是重新平衡亞太地區的消費者主張，我們添加了更多消費者友善產品包，以幫助在日益嚴峻的宏觀經濟環境中推動客戶成長。當與我們的訂閱和繁榮自動發貨計劃相結合時，該策略預計將產生強勁、可持續的成長。在第二季度，我們在亞洲頂級市場（例如台灣和日本）看到了我們的預期，這些市場最近引入了該策略。新客戶和訂單的強勁成長被平均訂單規模的暫時下降所抵消，導致短期內銷售成長略有下降。隨著團隊不斷建立客戶並推動 Subscribe 和 Thrive 的參與，我們預計未來將出現強勁成長。

China is a different situation. The widely publicized economic slowdown continued to negatively impact our business as second-quarter sales decreased 26% versus prior year on a local currency basis. The current economic environment has put more pressure on Chinese consumers who are still willing to try new products but are more demanding and more hesitant to place repeat orders. We continue to believe that our digital live streaming model is a powerful tool that's proven to be effective at driving customer acquisition and activation. But in the current economic environment, our consumer proposition faces new challenges.

中國的情況則不同。廣為人知的經濟放緩繼續對我們的業務產生負面影響，以當地貨幣計算，第二季銷售額比去年同期下降了 26%。當前的經濟環境給中國消費者帶來了更大的壓力，他們仍然願意嘗試新產品，但要求更高，也更不願意重複訂購。我們仍然相信，我們的數位直播模型是一個強大的工具，已證明可以有效推動客戶獲取和啟動。但在當前的經濟環境下，我們的消費者主張面臨新的挑戰。

As we continue to move forward, we'll tackle the challenge head on by strengthening sales tools and expanding our live streaming training. Most importantly, we'll also focus on honing and refining our consumer proposition to increase consumer appeal, which will help us expand frequency and reach and restore velocity to our digital live streaming model. This will take some time to fully implement. Overall, Asia Pacific saw second-quarter sales decrease 3% in constant currency, primarily driven by China. Excluding China, Asia Pacific's second-quarter sales were up 4% in local currency.

隨著我們繼續前進，我們將透過加強銷售工具和擴大直播培訓來應對挑戰。最重要的是，我們還將專注於磨練和完善我們的消費者主張，以增加消費者吸引力，這將幫助我們擴大頻率和覆蓋範圍，並恢復我們的數位直播串流模型的速度。這需要一些時間才能完全實施。總體而言，以固定匯率計算，亞太地區第二季銷售額下降了 3%，這主要是由中國推動的。不包括中國，亞太地區第二季銷售額以當地貨幣計算成長了 4%。

Looking forward, we believe we're taking the appropriate actions needed to deliver strong sustainable long-term growth and have a high degree of confidence in the team's ability to execute the strategy.

展望未來，我們相信我們正在採取必要的適當行動來實現強勁的可持續長期成長，並對團隊執行策略的能力充滿信心。

Finally, our third action focused on leveraging the business more effectively. And in the second quarter, we took the initiative to reduce $5 million of annualized expenses. The cost savings are comprehensive and include everything from streamlining fixed overhead to eliminating unproductive expenses. As we move forward, we will continue to leverage SG&A to drive additional efficiencies.

最後，我們的第三項行動著重於更有效地利用業務。在第二季度，我們主動減少了 500 萬美元的年化費用。成本節約是全面的，包括從簡化固定管理費用到消除非生產性開支等各方面。隨著我們的前進，我們將繼續利用 SG&A 來提高效率。

In closing, we're pleased with the direction we're taking and continue to be excited about the long-term potential of our omnichannel business. We believe the recent changes we've made will give our consumers a better shopping experience and give our distributors a more powerful set of tools to build their business. Ultimately, that will allow us to attract and retain more customers, drive order growth, and build sustainable profitable growth to create shareholder value.

最後，我們對我們所採取的方向感到滿意，並對我們全通路業務的長期潛力繼續感到興奮。我們相信，我們最近所做的改變將為我們的消費者帶來更好的購物體驗，並為我們的經銷商提供一套更強大的工具來發展他們的業務。最終，這將使我們能夠吸引和留住更多客戶，推動訂單成長，並建立可持續的獲利成長，從而創造股東價值。

With that, I'd like to turn the call over to our Chief Financial Officer, Shane Jones. Shane?

說到這裡，我想將電話轉給我們的財務長肖恩瓊斯。謝恩？

Thank you, Terrence. Moving on to our second-quarter results, consolidated net sales in the second quarter were $110.6 million compared to $116.5 million in the year-ago quarter. a 5% decrease versus the prior year, or a 3% decrease, excluding the impact from foreign exchange rates. As Terrence discussed, this decrease was driven by some temporary impacts due to upgrading our digital platform in North America and adjustments to our customer proposition in Asia Pacific, combined with more cautious consumer sentiment in most markets and deteriorating macroeconomic conditions in China.

謝謝你，特倫斯。來看第二季的業績，第二季的綜合淨銷售額為 1.106 億美元，去年同期為 1.165 億美元。較上年下降5%，若剔除匯率影響則下降3%。正如特倫斯所討論的，這一下降是由於我們在北美數位平台的升級和亞太地區客戶主張的調整，加上大多數市場更加謹慎的消費者情緒以及中國宏觀經濟狀況惡化而造成的一些暫時影響。

Looking at sales by market in the second quarter. Asia Pacific sales were down 9% to $50.0 million and down 3% on a local currency basis, driven primarily by a decline in our China business. Our China business accounted for most of the decline, with sales down 29% or 26% on a local currency basis, due to deteriorating economic conditions that continue to pressure consumer demand. We're sharpening our field fundamentals and improving our consumer proposition but believe it will take some time to get back on a growth trajectory in China. In Japan, sales for the quarter were down 12%, but were essentially flat on a local currency basis. While we're seeing a double-digit increase in orders and customers in Japan, the transition to product bundles with slightly lower prices has resulted in a short-term offset in average order value or AOV. As we move forward, we expect the AOV headwind to subside and growth to reaccelerate.

看看第二季各市場的銷售情況。亞太地區銷售額下降 9%，至 5,000 萬美元，以當地貨幣計算下降 3%，這主要是由於我們中國業務的下滑。我們的中國業務是銷售額下降的主要原因，銷售額下降了 29%，以當地貨幣計算下降了 26%，因為經濟狀況惡化繼續給消費者需求帶來壓力。我們正在加強我們的領域基礎並改善我們的消費者主張，但相信需要一些時間才能回到中國的成長軌道。在日本，本季銷售額下降 12%，但以當地貨幣計算基本持平。雖然我們看到日本的訂單和客戶出現兩位數增長，但向價格略低的產品捆綁的過渡導致平均訂單價值或 AOV 的短期抵消。隨著我們向前邁進，我們預計 AOV 的逆風將會消退，成長將重新加速。

Our Taiwan business continued its momentum as they reported 2% sales growth or 7% growth on a local currency basis, which was driven by a strong year-over-year increase in customers and orders combined with increased adoption of our subscription offering, partially offset by a lower AOV. In Korea, sales were down 3% or up 1% on a local currency basis as they continue to build out their sales capabilities and fundamentals by increasing the number of touch points with potential customers and increasing the frequency of promotions. We believe Korea is heading in the right direction, and we expect continued measured improvement.

我們的台灣業務繼續保持增長勢頭，銷售額增長 2%，按當地貨幣計算增長 7%，這是由於客戶和訂單同比強勁增長，加上我們的訂閱產品採用率增加，部分抵消了這一增長通過較低的AOV。在韓國，由於他們透過增加與潛在客戶的接觸點數量和增加促銷頻率來繼續增強銷售能力和基礎，因此以當地貨幣計算銷售額下降了 3% 或成長 1%。我們相信韓國正在朝著正確的方向前進，我們預計韓國將繼續取得有成效的進步。

North America sales in the quarter declined 3% versus last year. This decline was a function of a more cautious consumer combined with a temporary decline in distributor orders associated with the transition to our new digital platform with enhanced capabilities. North America digital growth was also somewhat impacted by economic conditions and the website transition, with Q2 year-over-year sales growth dipping slightly on a sequential basis to 22%. This growth was bolstered by an increase in repeat orders and average order value. As Terrence noted, we are already seeing an improvement in key performance indicators, such as conversion, and are confident that the new platform positions us well to provide an enhanced shopping experience for both customers and distributors.

該季度北美銷售額較去年下降 3%。這種下降是由於消費者更加謹慎，加上經銷商訂單暫時下降（與向我們功能增強的新數位平台過渡相關）的結果。北美數位成長也受到經濟狀況和網站轉型的一定影響，第二季銷售額較去年同期成長幅度小幅下降至 22%。這一增長得益於重複訂單和平均訂單價值的增加。正如特倫斯指出的那樣，我們已經看到關鍵績效指標（例如轉換率）有所改善，並且相信新平台使我們能夠為客戶和分銷商提供更好的購物體驗。

Looking at our Europe business, we continue to grow in the second quarter as sales increased 2% or 1% in local currency. Central Europe continued to perform exceptionally well, growing sales by 22% or 17% in local currency, largely driven by the strong performance of our power line products as well as a growing number of customers and good field execution. We expect the tailwinds in this business to continue through the remainder of the year.

看看我們的歐洲業務，我們第二季繼續成長，銷售額以當地貨幣計算成長了 2% 或 1%。中歐地區繼續表現出色，以當地貨幣計算的銷售額增長了 22% 或 17%，這主要得益於我們電力線產品的強勁表現以及不斷增長的客戶數量和良好的現場執行力。我們預計該業務的順風將持續到今年剩餘時間。

Now shifting to margins. Gross margin in the second quarter decreased 125 basis points to 71.4% compared to 72.6% a year ago. The decrease was primarily driven by the impact of inflation and unfavorable foreign exchange as well as the timing of our price increases. Inflation and foreign exchange headwinds have been larger than originally planned, and we are taking a cautious and measured approach to additional price increases. As a result, we are still expecting to achieve our $10 million gross profit savings goal this year. The impact of those savings on our consolidated financials may be somewhat masked in the short term.

現在轉向邊緣。第二季毛利率較去年同期的 72.6% 下降 125 個基點至 71.4%。下降的主要原因是通貨膨脹和不利外匯的影響以及我們提價的時機。通貨膨脹和外匯阻力比原計劃更大，我們對進一步提價採取謹慎和謹慎的態度。因此，我們仍預計今年將達到 1,000 萬美元的毛利節省目標。這些節省對我們合併財務的影響在短期內可能會有所掩蓋。

Volume incentives as a percentage of net sales were 31.4% compared to 30.3% in the year-ago quarter. The increase was primarily due to the timing of promotional incentives and changes in market mix. Selling, general, and administrative expenses during the second quarter were $38.6 million compared to $42.3 million in the prior year. The decrease was driven by the cost-saving actions taken to streamline our business as well as lower service fees in China.

銷量激勵佔淨銷售額的百分比為 31.4%，去年同期為 30.3%。這一增長主要是由於促銷激勵措施的時機和市場結構的變化。第二季的銷售、一般和管理費用為 3,860 萬美元，而去年同期為 4,230 萬美元。這一下降是由於我們為簡化業務而採取的成本節約措施以及中國服務費的降低。

As a percentage of net sales, SG&A expenses were 34.9% in the second quarter compared to 36.3% in the year-ago quarter. As Terrence mentioned in his remarks, the actions that we've taken in Q2 to eliminate unnecessary costs throughout the organization amount to over $5 million of annualized savings. Therefore, we are well positioned for the future and we'll continue to see the benefit of those actions for the remainder of this year and going forward.

第二季銷售、管理及行政費用佔淨銷售額的百分比為 34.9%，去年同期為 36.3%。正如 Terrence 在演講中提到的，我們在第二季為消除整個組織不必要的成本而採取的行動，每年節省了超過 500 萬美元。因此，我們為未來做好了充分的準備，我們將在今年剩餘時間和未來繼續看到這些行動的好處。

Operating income decreased to $5.6 million or 5.1% of net sales compared to $7.0 million or 6% of net sales in Q2 last year. GAAP net income attributable to common shareholders for the second quarter was $1.3 million or $0.07 per diluted common share compared to $2.4 million or $0.12 per diluted share in the year-ago quarter. Adjusted EBITDA, as defined in our earnings release, decreased to $10.4 million compared to $11.3 million in the year-ago quarter.

營業收入下降至 560 萬美元，佔淨銷售額的 5.1%，而去年第二季營業收入為 700 萬美元，佔淨銷售額的 6%。第二季歸屬於普通股股東的 GAAP 淨利為 130 萬美元，即每股稀釋普通股 0.07 美元，去年同期為 240 萬美元，即每股稀釋普通股 0.12 美元。根據我們的收益發布中的定義，調整後 EBITDA 下降至 1,040 萬美元，而去年同期為 1,130 萬美元。

Our balance sheet remains clean, with cash and cash equivalents of $68.7 million and zero debt. Inventory was $62.3 million at the end of the second quarter, which is $4.6 million less than we ended 2023. Net cash provided by operating activities was $3.5 million compared to $17.3 million in the prior year period, which was primarily driven by the timing of accrued liabilities. As part of our capital allocation plan, during the second quarter, we repurchased 348,000 shares for $5.9 million or an average price of $16.89 per share. As of June 30, $9.9 million remains of our $30 million share repurchase program. Looking beyond share repurchases, our healthy capital allocation structure positions us well to continue our digital transformation and other strategic initiatives.

我們的資產負債表保持乾淨，現金和現金等價物為 6,870 萬美元，債務為零。第二季末庫存為 6,230 萬美元，比 2023 年末減少 460 萬美元。經營活動提供的現金淨額為 350 萬美元，而上年同期為 1,730 萬美元，這主要是由應計負債的時間決定的。作為我們資本配置計劃的一部分，我們在第二季以 590 萬美元（平均價格為每股 16.89 美元）回購了 348,000 股股票。截至 6 月 30 日，我們 3,000 萬美元的股票回購計畫還剩 990 萬美元。除了股票回購之外，我們健康的資本配置結構使我們能夠繼續進行數位轉型和其他策略性舉措。

Now turning to our 2024 outlook. Given our second-quarter results and the short-term impacts from the changes discussed, we are lowering our guidance ranges for net sales and adjusted EBITDA. We now expect full-year 2024 net sales to range between $436 million and $445 million. This includes an estimated 200 basis point headwind to growth due to foreign exchange. As such, our guidance equates to constant currency growth of 0% to 2% for the year. For adjusted EBITDA, we now expect to range between $39 million and $42 million.

現在轉向我們的 2024 年展望。考慮到我們第二季度的業績以及所討論的變化的短期影響，我們正在降低淨銷售額和調整後 EBITDA 的指導範圍。我們現在預計 2024 年全年淨銷售額將在 4.36 億美元至 4.45 億美元之間。其中包括因外匯匯率造成的預期成長 200 個基點的阻力。因此，我們的指導相當於今年貨幣成長率維持在 0% 至 2%。對於調整後的 EBITDA，我們現在預計範圍在 3,900 萬美元至 4,200 萬美元之間。

In summary, we have taken the necessary measures to ensure that we are well positioned to provide the highest quality products and best-in-class experience for both our customers and distributors. We are confident that those actions will drive sustainable and profitable growth as we move into 2025 and beyond.

總而言之，我們已採取必要措施，確保我們能夠為客戶和經銷商提供最優質的產品和一流的體驗。我們相信，隨著我們進入 2025 年及以後，這些行動將推動可持續的獲利成長。

Now I will turn the time back to the operator.

現在我把時間還給接線生。

(Operator Instructions) Linda Bolton-Weiser, D.A. Davidson.

（操作員說明）Linda Bolton-Weiser，D.A.戴維森。

This is Christina Xue on for Linda. I was wondering, can you guys quantify the dollar sales for the temporary disruption that's in the North America segment? (technical difficulty)

這是琳達的克里斯蒂娜·薛。我想知道，你們能量化北美市場暫時中斷的美元銷售嗎？（技術難度）

I was wondering, like, if you guys could like quantify the temporary disruption in the North America segment for the quarter -- the dollar sales impact, if that's possible?

我想知道，你們是否可以量化本季北美市場的暫時中斷——美元銷售的影響，如果可能的話？

Yes. Look, let me turn that over to Shane. I think because there were several things. There's a lot of stuff going on with the consumer spending. And so Shane, do you want to take a crack at that and I'll follow-up?

是的。聽著，讓我把這個交給謝恩。我想是因為有幾件事。消費者支出發生了很多事。謝恩，你想嘗試嗎？

No, absolutely. So if you look at -- we were down about 3%. Of that 3%, roughly half of that is really attributable to consumer sentiment and other headwinds that we're seeing, and then half of it is related to the temporary disruptions that we had.

不，絕對是。所以如果你看一下——我們下降了大約 3%。在這 3% 中，大約一半實際上是由於消費者情緒和我們看到的其他不利因素造成的，另一半則與我們遇到的暫時中斷有關。

That's helpful. And I have a follow-up. So it looks like in the revised sales guidance, there could still be like a sales growth in the second half of the year. So I was wondering if you could talk about where the potential growth can come from?

這很有幫助。我有一個後續行動。因此，在修訂後的銷售指引中，下半年的銷售仍可能出現成長。所以我想知道您能否談談潛在的成長來自哪裡？

Yes. And we've tried to be somewhat conservative, obviously, with the kind of go-forward outlook. Do you want to talk, Shane, about kind of where we think there could be some upside?

是的。顯然，我們試圖保持某種保守的態度，並保持前瞻性的觀點。謝恩，你想談談我們認為可能有哪些好處嗎？

Yes. No, absolutely. As we look at it, we're still very confident in our digital business in North America. And so as you saw, that grew 22% which was actually a sequential decline from 30%-plus in previous quarters. As Terrence alluded to, with the change over to the new platform, we're seeing some good things in a lot of the metrics that we're looking at that encourage us about the future and as far as conversion rate, retention, and other metrics. So that's really where we would expect growth to accelerate throughout the rest of this year.

是的。不，絕對是。從我們的角度來看，我們對北美的數位業務仍然非常有信心。正如您所看到的，增長了 22%，這實際上是比前幾季度 30% 以上的環比下降。正如特倫斯所提到的，隨著轉向新平台，我們在我們正在研究的許多指標中看到了一些好的東西，這些指標鼓勵我們對未來以及轉換率、保留率和其他方面進行展望。因此，這確實是我們預計今年剩餘時間成長將加速的地方。

And I think we expect to see continued performance in Europe as well.

我認為我們期望在歐洲也能看到持續的表現。

Yes, yes. Europe, very strong results that are likely to continue, especially Central Europe.

是的，是的。歐洲，非常強勁的業績可能會持續下去，尤其是中歐。

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Moorehead for closing remarks.

至此，我們的問答環節就結束了。我現在想將電話轉回給摩爾黑德先生，讓其致閉幕詞。

Okay. Thank you very much. We'd like to thank everybody for listening to today's call. And we look forward to speaking with you when we report our third-quarter 2024 results in November of this year. Thanks again for joining us, and we'll talk to you soon. Take care.

好的。非常感謝。我們要感謝大家收聽今天的電話會議。我們期待在今年 11 月報告 2024 年第三季業績時與您交談。再次感謝您加入我們，我們很快就會與您聯繫。小心。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Have a great day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。祝你有美好的一天。