如新 (NUS) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Nu Skin Enterprises second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加如新企業 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker, Scott Pond, VP of Investor Relations. Please go ahead.

現在我想將會議交給您的發言人、投資者關係副總裁 Scott Pond。請繼續。

Thanks, Shannon, and good afternoon, everyone. Today on the call with me are Ryan Napierski, President and CEO; and James Thomas, CFO.

謝謝香農，大家下午好。今天與我通話的是總裁兼執行長 Ryan Napierski；和首席財務官詹姆斯托馬斯。

On today's call, comments will be made that include forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.

在今天的電話會議上，將發表包括前瞻性陳述的評論。這些陳述涉及風險和不確定性，實際結果可能與討論或預期的結果有重大差異。請參閱今天的收益報告和我們向 SEC 提交的文件，以了解對這些風險的完整討論。

Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website for any required reconciliation of these non-GAAP numbers.

此外，在電話會議期間，可能會討論某些與我們財務報表中獲得的可比較數據不同的財務數據。我們相信這些非公認會計原則數字有助於以更一致的方式比較不同時期的結果。請參閱我們的投資者網站，以了解這些非 GAAP 數據所需的調整。

And with that, I'd like to turn the call over to Ryan.

說到這裡，我想把電話轉給瑞安。

Thanks, Scott. Hello, everyone. Thanks for joining our call today. I'll start by providing a performance summary of Q2 and then share progress update on our ongoing enterprise transformation vision, strategy, and plan as we continue to evolve our core Nu Skin business from a traditional direct-selling model towards a more expansive integrated beauty, wellness, and lifestyle company, including our Rhyz ecosystem.

謝謝，斯科特。大家好。感謝您今天加入我們的電話會議。我將首先提供第二季的業績摘要，然後分享我們正在進行的企業轉型願景、策略和計劃的最新進展，因為我們將繼續將我們的核心如新業務從傳統的直銷模式發展為更廣泛的綜合美容業務、健康和生活方式公司，包括我們的 Rhyz 生態系統。

The second quarter played out similar to the first with revenue slightly above the midpoint of our guidance despite a stronger-than-anticipated FX headwind of over 4%. Non-GAAP earnings per share were near the top end of the range, reflecting continued progress to plan for our business transformation while managing costs and driving efficiencies.

儘管外匯逆風超過 4%，但第二季的表現與第一季相似，收入略高於我們指導的中點。非公認會計準則每股收益接近該範圍的上限，反映出我們在管理成本和提高效率的同時，在規劃業務轉型方面不斷取得進展。

Overall, the operating environment remains challenging for our core Nu Skin business due in large part to macroeconomic factors and pressures on the direct-selling industry itself. Despite these challenges, we were encouraged by sequential gains in several of our markets, including the US, South Korea, and parts of Southeast Asia Pacific.

總體而言，如新核心業務的經營環境仍然充滿挑戰，這在很大程度上是由於宏觀經濟因素和直銷業本身的壓力。儘管面臨這些挑戰，但我們對幾個市場的連續成長感到鼓舞，包括美國、韓國和東南亞太平洋地區的部分地區。

Most notably, we experienced year-over-year improving trends in paid brand affiliates globally, which translated into improving new sales leaders. China remained challenging due to macro trends in the market.

最值得注意的是，我們經歷了全球付費品牌附屬公司逐年改善的趨勢，這轉化為新銷售領導者的改善。由於市場的宏觀趨勢，中國仍然充滿挑戰。

Our Rhyz business continued to perform well with revenue up 32% to nearly $68 million, accounting for over 15% of our second quarter total. Growth at Rhyz was led by our Mavely affiliate platform and our Wasatch manufacturing business. Rhyz plays a critical role in our enterprise transformation that I'll speak to in a moment, and we expect revenue from Rhyz to continue to grow at a faster pace, reaching 20% to 25% of overall revenue mix by 2025.

我們的 Rhyz 業務持續表現良好，營收成長 32%，達到近 6,800 萬美元，佔第二季總營收的 15% 以上。Rhyz 的成長是由我們的 Mavely 附屬平台和 Wasatch 製造業務所帶動的。Rhyz 在我們的企業轉型中發揮關鍵作用，我稍後會談到這一點，我們預計 Rhyz 的收入將繼續以更快的速度增長，到 2025 年達到整體收入組合的 20% 至 25%。

Let's dive deeper into both our Nu Skin core and Rhyz businesses. In our core Nu Skin business, new products, including ageLOC WellSpa iO and RenuSpa iO, along with our TRMe weight management system, were the main growth drivers delivering over $60 million of revenue in the quarter. Adding these new wellness -- the new wellness iO devices to our cadre of beauty devices has resulted in Nu Skin being named as the world's number one company for beauty and wellness device systems by Euromonitor this past year.

讓我們更深入地了解如新核心業務和 Rhyz 業務。在我們的核心如新業務中，新產品，包括ageLOC WellSpa iO和RenuSpa iO，以及我們的TRMe體重管理系統，是主要的成長動力，在本季度創造了超過6000萬美元的收入。將這些新的健康—新的健康 iO 設備添加到我們的美容設備系列中，使如新在去年被 Euromonitor 評為全球第一大美容和健康設備系統公司。

To date, our iO devices have produced more than 20 million connected treatments and over 100 million data points that are helping us to better understand our consumers' unique habits and behaviors, which drive two to three times greater purchasing than that of nonconnected device consumers.

迄今為止，我們的iO 裝置已產生超過2,000 萬次連網治療和超過1 億個數據點，這些數據點幫助我們更了解消費者的獨特習慣和行為，從而推動購買量比非連網裝置消費者高出兩到三倍。

During the quarter, we continue to feel the impact of the challenging macro environment affecting consumer spending and customer acquisition in the majority of our regions, particularly for premium goods. Nevertheless, we were encouraged with sequential gains in several of our KPIs, including double-digit customer growth in our two largest segments, the Americas and Mainland China, along with gains in sales leaders in the key markets of South Korea and Southeast Asia Pacific.

本季度，我們繼續感受到充滿挑戰的宏觀環境的影響，影響了我們大多數地區的消費者支出和客戶獲取，尤其是優質商品。儘管如此，我們對幾個關鍵績效指標的連續成長感到鼓舞，包括我們最大的兩個細分市場（美洲和中國大陸）的兩位數客戶成長，以及韓國和東南亞太平洋地區主要市場的銷售領先者的增長。

We just held our first in-person live event for our Western markets in over five years with an even larger event slated for our Eastern markets in September. It was a great reminder of the power of getting together in person, and we were able to drive energy and alignment along our leaders as we shared three key initiatives.

我們剛剛為西方市場舉辦了五年多來的首次現場現場活動，並計劃於 9 月為東方市場舉辦一場規模更大的活動。這很好地提醒了我們面對面聚集的力量，當我們分享三個關鍵舉措時，我們能夠推動領導者的活力和團結。

First, we previewed our next major product division, MYND360, a holistic approach to supporting cognitive health that will be launched around the globe over the next several quarters. MYND360 is built to serve customers who are seeking support for stress management, cognitive performance, and sleep in this rapidly growing $9 billion global cognitive health market.

首先，我們預覽了我們的下一個主要產品部門 MYND360，這是一種支持認知健康的整體方法，將於未來幾季在全球推出。MYND360 旨在為在這個快速成長的 90 億美元全球認知健康市場中尋求壓力管理、認知表現和睡眠支援的客戶提供服務。

Second, we discussed plans to enhance our overall brand awareness, announcing our integrated brand building plans as we strive to build greater presence wherever our customers seek to find us, including enhanced digital marketing and third-party marketplaces like Amazon. Improving overall brand awareness will lead to greater engagement and conversion for our customers and affiliates as we build synergistic value in the marketplace.

其次，我們討論了提高整體品牌知名度的計劃，宣布了我們的綜合品牌建設計劃，因為我們努力在客戶尋求找到我們的地方建立更大的影響力，包括增強數位行銷和亞馬遜等第三方市場。當我們在市場上建立協同價值時，提高整體品牌知名度將提高我們的客戶和附屬公司的參與度和轉換率。

And third, we announced our increasing efforts and focus to further penetrate developing in emerging markets around the globe, beginning with the revised operating models in Latin America and some Southeast Asia markets beginning in the second half of this year. Developing markets represent more than half of the markets in which Nu Skin currently operates and are significantly underrepresented in revenue and operating performance.

第三，我們宣布將加強並專注於進一步滲透全球新興市場的發展，首先是從今年下半年開始修改拉丁美洲和一些東南亞市場的營運模式。發展中市場佔新目前營運市場的一半以上，但在收入和經營績效方面所佔比例明顯不足。

Our revised operating plan will include a more localized product portfolio and business model that will enable us to reach a broader demographic than historically feasible through our current business model in these markets as well as streamlined operations. We will leverage these learnings as we prepare for our previously announced exploration of the India market.

我們修訂後的營運計劃將包括更本地化的產品組合和業務模式，這將使我們能夠透過我們在這些市場當前的業務模式以及簡化的運營，接觸到比歷史上更廣泛的受眾。我們將利用這些經驗為先前宣布的印度市場探索做準備。

Our team is very focused on building successful developing and emerging market business models that will take Nu Skin's mission of being a global force for good by empowering people to improve lives to new markets around the world.

我們的團隊非常專注於建立成功的發展中和新興市場商業模式，這將實現如新的使命，即透過幫助人們改善世界各地新市場的生活，成為全球公益力量。

Shifting next to Rhyz. As I mentioned previously, Rhyz continues to perform at an accelerated pace as we invest in, build, and scale these businesses towards long-term integrated beauty, wellness, and lifestyle ecosystems.

轉移到瑞茲旁邊。正如我之前提到的，隨著我們投資、建立和擴展這些業務，以實現長期綜合美容、健康和生活方式生態系統，Rhyz 的業績繼續加快。

Rhyz is made up of several businesses ranging from technologies, manufacturing, and more recently, brands. Every investment in Rhyz holds synergistic value to the other businesses in our ecosystem and play critical roles in our long-term vision and strategy.

Rhyz 由多項業務組成，包括技術、製造以及最近的品牌。對 Rhyz 的每項投資都對我們生態系統中的其他業務具有協同價值，並在我們的長期願景和策略中發揮關鍵作用。

One critical business within Rhyz is Mavely, our everyday influencer platform that connects more than 70,000 affiliates to over 1,200 beauty, wellness, and lifestyle brands in the United States. Mavely is rapidly becoming a leading affiliate brand platform, leveraging technology that enables brands to access our army of everyday influencers to share their brands via social media.

Rhyz 的一項關鍵業務是 Mavely，這是我們的日常影響者平台，將美國 70,000 多家附屬機構與 1,200 多個美容、健康和生活方式品牌聯繫起來。Mavely 正迅速成為領先的聯盟品牌平台，利用科技讓品牌接觸到我們的日常影響者大軍，透過社群媒體分享他們的品牌。

Leveraging machine learning and working to implement next-generation AI, Mavely curates brands for its affiliates to share via social media, simple, fast, and easy. And we're leveraging the Mavely platform to develop a Nu Skin/Mavely app instance that will enable our affiliates to share Nu Skin brands more easily while gaining access to hundreds of other brands to promote and share.

Mavely 利用機器學習並致力於實施下一代人工智慧，為其附屬公司策劃品牌，以便透過社群媒體簡單、快速、輕鬆地進行分享。我們正在利用 Mavely 平台開發 Nu Skin/Mavely 應用程式實例，使我們的附屬公司能夠更輕鬆地共享 Nu Skin 品牌，同時獲得數百個其他品牌的存取權限以進行推廣和共享。

Additionally, Mavely enables the promotion of other Rhyz brands such as BeautyBio to Mavely affiliates. We anticipate that affiliate marketing will continue to outpace virtually all other forms of advertising and promotion, and we believe that our approach to integrated affiliate marketing via Mavely will become a more meaningful player in this rapidly shaping industry.

此外，Mavely 還可以向 Mavely 附屬公司推廣其他 Rhyz 品牌，例如 BeautyBio。我們預計，聯盟行銷將繼續超過幾乎所有其他形式的廣告和促銷，我們相信，我們透過 Mavely 進行整合聯盟行銷的方法將成為這個快速發展的行業中更有意義的參與者。

In addition to Mavely, the benefits to vertical integration across manufacturing and our owned and partnered brands enables us to accelerate product innovation and speed to market as we move more quickly to keep pace with consumer trends in beauty and wellness. Rhyz also provides us optionality to drive brand awareness and engagement, meeting more consumers where they discover and shop.

除了 Mavely 之外，跨製造以及我們自有和合作品牌的垂直整合的好處使我們能夠加快產品創新和上市速度，因為我們更快地跟上美容和健康領域的消費者趨勢。Rhyz 也為我們提供了提高品牌知名度和參與度的選擇，在更多消費者發現和購物的地方與他們見面。

We continue to invest in Rhyz as a critical innovation accelerator for our overall enterprise transformation strategy. Leveraging the expertise of companies within Rhyz has been instrumental in accelerating our innovation agenda in product and device research and development, sustainability, and supply chain capabilities. We'll continue to expand on this and share progress with you in the coming quarters.

我們繼續投資 Rhyz，將其作為我們整體企業轉型策略的關鍵創新加速器。利用 Rhyz 內部公司的專業知識有助於加快我們在產品和設備研發、永續性和供應鏈能力方面的創新議程。我們將在接下來的幾個季度繼續對此進行擴展並與您分享進展。

So in summary, our enterprise transformation remains on track with second-quarter results in line with guidance and at the halfway point of 2024. We've continued to demonstrate our ability to adapt to challenges and deliver within expectations.

總而言之，我們的企業轉型仍處於正軌，第二季業績符合指導方針，並且在 2024 年中期實現。我們不斷展示我們適應挑戰和實現預期目標的能力。

We're focused on accelerating innovation across our Nu Skin core business with our MYND360 product division, an enhanced business model for developing and emerging markets, and integrated brand building efforts. We're also investing in key enterprise growth initiatives, including Mavely and several other businesses in Rhyz, which continue to deliver strong growth.

我們致力於透過 MYND360 產品部門、針對發展中和新興市場的增強型業務模式以及綜合品牌建立工作，加速如新核心業務的創新。我們也投資於關鍵的企業成長計劃，包括 Mavely 和 Rhyz 的其他幾家企業，它們繼續實現強勁成長。

We have a long runway into the future and provide us with synergistic tools and capabilities that we can leverage across the enterprise. Operationally, we continue to focus on managing costs and driving efficiencies throughout our ongoing transformation. Despite the persistence of macroeconomic headwinds, we remain focused on executing our long-term vision of becoming the world's leading integrated beauty, wellness and lifestyle ecosystem.

我們在未來還有很長的路要走，並為我們提供了可以在整個企業中利用的協同工具和功能。在營運方面，我們在整個轉型過程中繼續專注於管理成本和提高效率。儘管宏觀經濟逆風持續存在，我們仍然專注於實現成為世界領先的綜合美容、健康和生活方式生態系統的長期願景。

So with that, I'll turn the time over to James to cover second-quarter results in more detail along with our guidance. And then we'll open it up for questions. James?

因此，我將把時間交給詹姆斯，更詳細地介紹第二季的業績以及我們的指導。然後我們將開放提問。詹姆斯？

Thank you, Ryan. Thanks to all of you for joining today. I'll provide a brief Q2 update and then speak to Q3 and 2024 guidance. For additional details, please visit our Investor Relations website.

謝謝你，瑞安。感謝大家今天的加入。我將提供簡短的第二季更新，然後討論第三季和 2024 年的指導。如需了解更多詳情，請造訪我們的投資者關係網站。

For the second quarter, we posted revenue of $439.1 million, which was at the midpoint of our previous guidance range and included a slightly larger-than-expected negative foreign currency headwind of 4.2% or $21 million. Reported earnings were negative $2.38 or $0.21 excluding restructuring and impairment charges.

第二季度，我們公佈的收入為 4.391 億美元，處於我們先前指導範圍的中點，其中包括略高於預期的 4.2% 或 2,100 萬美元的負面外匯阻力。報告收益為負 2.38 美元或 0.21 美元，不包括重組和減損費用。

Our gross margin was 70% compared to 72.9% in the prior year quarter. Our overall gross margin continues to be impacted by growth in our Rhyz business, which carries a lower gross margin. Gross margin for the Nu Skin core business was 76.1% compared to 77.2% in the prior year quarter.

我們的毛利率為 70%，而去年同期為 72.9%。我們的整體毛利率持續受到毛利率較低的 Rhyz 業務成長的影響。如新核心業務的毛利率為 76.1%，去年同期為 77.2%。

This decline in margin can largely be attributed to the geographic shift of revenue in the core and fixed overhead costs on lower volume. We're accelerating our SKU rationalization project and expect to see sequential improvements in gross margin with an approximate 20% reduction in our overall SKU count by the end of 2024.

利潤率的下降很大程度上歸因於核心收入的地理轉移以及銷售下降的固定管理成本。我們正在加速 SKU 合理化項目，預計到 2024 年底，毛利率將持續改善，SKU 總數將減少約 20%。

Selling expense as a percentage of revenue was 37.7% compared to 37% in the prior year quarter. For the Nu Skin core business, selling expense was 42.2% compared to 40.2% in the prior year period. Our core Nu Skin selling expense typically ranges between 40% to 42% with a slight increase mainly attributed to enhancements made to the compensation plan targeting customer and affiliate acquisition.

銷售費用佔收入的百分比為 37.7%，去年同期為 37%。對於如新核心業務，銷售費用為 42.2%，去年同期為 40.2%。我們的核心如新銷售費用通常在 40% 至 42% 之間，略有增加主要歸因於針對客戶和附屬公司收購的薪酬計劃的增強。

General and administrative expense declined nearly $20 million due to the continued execution of our cost efficiency program, related restructuring activities in the quarter, and bringing overall operating costs more in line with current revenue levels. As a percent of revenue, G&A for the quarter was 26.9% compared to 27.4% in Q2 2023.

由於我們繼續執行成本效率計劃、本季度的相關重組活動以及使總體營運成本與當前收入水平更加一致，因此一般和管理費用下降了近 2000 萬美元。本季的一般管理費用佔收入的百分比為 26.9%，而 2023 年第二季為 27.4%。

Over the past several years, our core Nu Skin business has faced challenges due to global economic downturns, the rising cost of capital, and overall direct-selling industry pressures. These factors have contributed to a depressed market valuation, which resulted in a non-cash goodwill and intangibles impairment of $141 million, mainly across the Nu Skin reporting units.

過去幾年，由於全球經濟衰退、資本成本上升以及整體直銷行業的壓力，如新核心業務面臨挑戰。這些因素導致市場估值低迷，導致非現金商譽和無形資產減損 1.41 億美元，主要涉及如新報告單位。

Additionally, in the second quarter, we incurred $8.4 million in restructuring charges and plan to extend our restructuring program as we continue to evolve our operating footprint as we transform our business. Our operating margin for the quarter was negative 28.6% or 5.4% excluding restructuring and impairment charges compared to 8.5% in the prior year quarter.

此外，在第二季度，我們產生了 840 萬美元的重組費用，並計劃擴大我們的重組計劃，因為我們在業務轉型的過程中不斷發展我們的營運足跡。本季我們的營業利益率為負 28.6%，不包括重組和減損費用則為 5.4%，去年同期為 8.5%。

Interest expense was $6.7 million for the quarter compared to $5.8 million in the prior year. The other income expense line reflects $0.6 million of income compared to $0.4 million of income in the prior year quarter.

本季利息支出為 670 萬美元，而去年同期為 580 萬美元。其他收入支出項目反映了 60 萬美元的收入，而去年同期的收入為 40 萬美元。

In the second quarter, we continue to make strides in our inventory management and portfolio optimization plan, which helped generate healthy cash flows from operations of $51.2 million, which also generated free cash flow of $43.1 million in the quarter.

第二季度，我們繼續在庫存管理和投資組合優化計劃方面取得進展，這有助於從營運中產生 5,120 萬美元的健康現金流，並在本季度產生 4,310 萬美元的自由現金流。

We paid $3 million in dividends, paid down $25 million of our outstanding debt during the quarter. We did not repurchase any stock and have $162.4 million remaining on our current authorization.

本季我們支付了 300 萬美元的股息，還清了 2,500 萬美元的未償債務。我們沒有回購任何股票，目前授權剩餘 1.624 億美元。

Our tax rate for the quarter was 10.2% or 41.4% excluding restructuring charges compared to 27.5%. For both the third quarter and the year, we anticipate an adjusted tax rate of 36% to 42%. This annual rate reflects an anticipated higher global effective tax rate, primarily due to the expected geographical mix of our earnings.

我們本季的稅率為 10.2% 或 41.4%（不含重組費用），而稅率為 27.5%。對於第三季和今年，我們預計調整後的稅率為 36% 至 42%。這一年稅率反映了預期更高的全球有效稅率，這主要是由於我們收入的預期地理組合。

Shifting attention now to guidance. Based on our first-half performance in 2024 at the midpoint of our prior guide, increased FX pressure, and the current state of the business, we are tightening our annual guidance. We now expect 2024 revenue in the $1.73 billion to $1.81 billion range with earnings per share of negative $2.01 to negative $1.81 or adjusted earnings of $0.75 to $0.95.

現在將注意力轉向指引。根據我們 2024 年上半年的業績（處於先前指導的中點）、外匯壓力的增加以及當前的業務狀況，我們正在收緊我們的年度指導。我們目前預計 2024 年營收將在 17.3 億美元至 18.1 億美元範圍內，每股收益為負 2.01 美元至負 1.81 美元，或調整後收益為 0.75 美元至 0.95 美元。

Our guidance now assumes increased foreign currency headwind of approximately negative 4% to negative 3%. We are projecting third-quarter revenue of $430 million to $465 million, assuming a foreign currency headwind of approximately 4% to 3%, with reported earnings per share of $0.08 to $0.18 or adjusted earnings of $0.15 to $0.25.

我們現在的指導假設外匯阻力增加約負 4% 至負 3%。我們預計第三季營收為 4.3 億至 4.65 億美元，假設外匯逆風約為 4% 至 3%，報告每股收益為 0.08 至 0.18 美元，調整後收益為 0.15 至 0.25 美元。

Looking ahead, we are confident in our ability to navigate the challenges and opportunities that lie before us. Our solid balance sheet and strong cash flow position us well to invest in growth initiatives while returning value to our shareholders. We will continue to execute our enterprise vision and strategy with discipline and focus, ensuring that we remain well positioned for success.

展望未來，我們對應對擺在我們面前的挑戰和機會的能力充滿信心。我們穩健的資產負債表和強勁的現金流使我們能夠很好地投資成長計劃，同時為股東回報價值。我們將繼續嚴格、專注地執行我們的企業願景和策略，確保我們為成功做好準備。

And with that, operator, we'll now open up the call for questions.

接線員，我們現在開始提問。

Thank you. (Operator Instructions) Chase Bender, Citi.

謝謝。（操作員指令）Chase Bender，花旗銀行。

Great. Thanks. Afternoon, guys. I wanted to first ask if you could give a little bit more detail about this Nu Skin/Mavely app and explain how it will work specifically from the perspective of a sales leader. Once I have it in hand, how do I operate it? What does it mean? And how do I interface with it?

偉大的。謝謝。下午好，夥計們。我想先詢問您是否可以提供有關 Nu Skin/Mavely 應用程式的更多詳細信息，並從銷售主管的角度解釋它如何具體工作。當我拿到手之後，我該如何操作？這是什麼意思？我如何與它互動？

But then at a higher level, obviously, you are launching products like MYND360. You have more affordable luxury. You have this new app coming online. It seems like there's a lot coming at sales leaders, really, one at a time. They need to get back to basic blocking and tackling. So just generally, how do you think about balancing all of these launches with competing attention versus stabilizing the core of the business?

但在更高的層面上，顯然，你們正在推出像 MYND360 這樣的產品。您擁有更實惠的奢侈品。這個新應用程式即將上線。銷售主管似乎面臨很多挑戰，真的，一次一個。他們需要回到基本的阻擋和鏟斷。總的來說，您如何考慮平衡所有這些發布與競爭性關注與穩定業務核心？

Yeah, Chase. Good questions. We'll walk through a couple of those things quickly. Yeah.

是的，蔡斯。好問題。我們將快速瀏覽其中的一些內容。是的。

So the Mavely app, if you go to the app store today, you can download a Mavely app and walk through how it works in terms of curating brands as an individual, every day affiliate signs up. So as we're looking towards Nu Skin, the Nu Skin/Mavely instance of that Nu Skin affiliate as we build this out and put it into the market, they'll be able to download the app and go through a very similar experience, curating the brands that work for them. Then they'll be able to -- it's a simple post and share technology that works with links that -- and it's pretty smooth, pretty easy to share.

因此，Mavely 應用程序，如果您今天去應用程式商店，您可以下載 Mavely 應用程序，並了解它如何作為個人、每日附屬機構註冊來策劃品牌。因此，當我們關注 Nu Skin（如新附屬公司的 Nu Skin/Mavely 實例）並將其投入市場時，他們將能夠下載該應用程式並獲得非常相似的體驗，策劃適合他們的品牌。然後他們將能夠——這是一個簡單的帖子和共享技術，可與連結一起使用——而且非常流暢，非常容易共享。

So that's how -- it's a simpler way to basically share those brands and then get access to other beauty, wellness, lifestyle brands on the Mavely app, so pretty straightforward that way.

這就是方式 - 這是一種更簡單的方式，基本上可以分享這些品牌，然後在 Mavely 應用程式上訪問其他美容、健康、生活方式品牌，這樣就非常簡單了。

As far as the focus of the field, we totally agree with you. That's a lot of our discussion in-house, is how do we ensure that we continue to innovate while enabling our sales force to focus on those back-to-the-basics principles? In fact, a big part of our live events theme and discussions were around back to basics, which is really sharing products you love with people and getting them to do the same.

就該領域的焦點而言，我們完全同意你的觀點。這是我們內部的許多討論，我們如何確保我們繼續創新，同時使我們的銷售人員能夠專注於這些回歸基本的原則？事實上，我們現場活動主題和討論的很大一部分都是圍繞著回歸基礎，即與人們分享您喜愛的產品並讓他們也這樣做。

That's really the basic fundamentals. So as we look to new products into the market, whether it is affordable luxury, whether it's MYND360, these are additional products for them to share with people that they love and get them to do the same. So it's not as much about adding new products in for them to focus on.

這確實是基本原理。因此，當我們期待進入市場的新產品時，無論是經濟實惠的奢侈品，還是 MYND360，這些都是他們可以與自己所愛的人分享並讓他們也這樣做的額外產品。因此，添加新產品並不是讓他們關注的重點。

Typically, people orient -- especially in the affiliate and marketing world, they orient to products that they relate to most. So they're not all moving the same thing. And you can even see that with some of our new product launches in the last five or six years.

通常，以人為本——尤其是在聯盟和行銷領域，他們以與他們最相關的產品為導向。所以他們並不是都在移動一樣的東西。您甚至可以從我們過去五、六年推出的一些新產品中看到這一點。

It's -- the world has changed quite a bit where, historically, we would launch a new product and nearly the entire sales force would focus on that one new product. That's really not how the affiliate world works any longer. It's more of identifying products that relate to you and relate to your target customer as a social influencer, a micro influencer.

世界已經發生了很大的變化，從歷史上看，我們推出一種新產品，幾乎整個銷售團隊都會專注於該新產品。這其實已經不再是聯盟世界的運作方式了。它更多的是識別與您相關的產品以及與您作為社會影響者、微觀影響者的目標客戶相關的產品。

And so having those optionalities or the optionality of additional products to select from, it then enables them to build their business their way so to speak. So we are mindful of the balance and the back to the basics.

因此，有了這些選項或其他產品的選項可供選擇，他們就可以按照自己的方式建立業務。因此，我們注重平衡並回歸基礎。

Again, I go -- back to basics simply means sharing products you love with people and getting them to do the same. That is the basics. Regardless of the product we put in front of them, we're targeting products that enable them to reach broader demographics and broader target markets, if that makes sense.

我再說一次——回歸根本意味著與人們分享你喜歡的產品並讓他們也這樣做。這是基礎知識。無論我們向他們展示什麼產品，我們的目標都是使他們能夠涵蓋更廣泛的人口統計和更廣泛的目標市場（如果這有意義的話）。

Got it. No, that's good detail. And then just mechanically, if a sales leader uses the Mavely app, shares a product, and generates the sale, how is that booked? Is that booked as core Nu Skin sale? Is that booked as Rhyz sale?

知道了。不，這個細節很好。然後，機械地，如果銷售主管使用 Mavely 應用程式、共享產品並產生銷售，那麼如何預訂？這是如新的核心促銷活動嗎？是作為 Rhyz 促銷預訂的嗎？

Yeah, James, go ahead.

是的，詹姆斯，繼續吧。

Yeah. So I mean we're still working through the mechanics of how that will come through. But a sell that runs through the Mavely app, that will be recording revenue in Mavely. And -- but it will all come to the same parent company in Nu Skin.

是的。所以我的意思是我們仍在研究如何實現這一點的機制。但是透過 Mavely 應用程式進行的銷售將在 Mavely 中記錄收入。而且──但這一切都將歸於同一家母公司如新 (Nu Skin)。

Okay. Okay, got it. And then I wanted to ask about the revised operating model in LatAm and those Southeast Asian markets. Could you just expand on that, what the key changes are in your mind, and frame how quickly you think you could see positive activity and productivity changes and then ultimately translating that into a time line for those changes to hit the P&L?

好的。好的，明白了。然後我想問拉丁美洲和東南亞市場修改後的營運模式。您能否擴展一下您認為的關鍵變化是什麼，並確定您認為可以多快看到積極的活動和生產力變化，然後最終將其轉化為這些變化影響損益的時間表？

Yeah. Yeah, absolutely. So really from -- as we look out at these -- what we call developing markets are these markets where Nu Skin present -- has a presence. We have well over half of our markets that sit in that LatAm, Southeast Asia, East Europe, even parts of China, frankly, that are just different than the major urban cities.

是的。是的，絕對是。因此，實際上，當我們觀察這些市場時，我們所說的發展中市場是指如新存在的市場。我們有超過一半的市場位於拉丁美洲、東南亞、東歐，甚至中國的部分地區，坦白說，這些市場與主要城市不同。

And as we look at that and the opportunities there, certainly, there are three key components of our operation there that we are reconsidering or evaluating. The first is the product portfolio and ensuring that we have the right products at the right prices. Second one then is the business model to enable the right behaviors for selling those products.

當我們審視這一點和那裡的機會時，當然，我們正在重新考慮或評估我們在那裡運作的三個關鍵組成部分。首先是產品組合，確保我們以適當的價格提供合適的產品。第二個是商業模式，以實現銷售這些產品的正確行為。

And then the third one is the operational infrastructure that in various geographies is a little bit different. For instance, in Latin America, quotas or installment payments are the predominant form of payment versus, say, credit cards or the like elsewhere.

第三個是不同地區的營運基礎設施略有不同。例如，在拉丁美洲，配額或分期付款是主要的付款方式，而其他地方則採用信用卡等方式。

So as we're looking at these developing markets -- and we've already begun work in Latin America, in Argentina, for instance, where we've reduced the product portfolio of the existing and are evaluating local manufacturing opportunities for new products to get price points at the right place for the demographic, the target demographic that we're going after, evaluating the business model.

因此，當我們著眼於這些發展中市場時，我們已經開始在拉丁美洲開展工作，例如在阿根廷，我們減少了現有的產品組合，並正在評估新產品的本地製造機會，以在適合人群的正確位置獲得價格點，我們要追蹤的目標人群，評估商業模式。

We're already in a test model down in Latin America on a revision to the business model or the compensation system that rewards for that and then scaling the operations. So we've already begun those tests in LatAm. We will continue to expand those tests throughout the end of this year and evaluating a couple of markets in Southeast Asia, like the Philippines, in Thailand, Vietnam, these parts of the world, where just the socioeconomic status is just different that -- much different than the more developed markets we operate on.

我們已經在拉丁美洲進行了測試模型，修改商業模式或獎勵制度，然後擴大營運規模。所以我們已經在拉丁美洲開始了這些測試。我們將在今年年底繼續擴大這些測試，並評估東南亞的幾個市場，例如菲律賓、泰國、越南，以及世界這些地區，這些地區的社會經濟地位差異很大。

So as far as how we see it in the P&L, we haven't really worked that through the remainder of this year. I think we're very much in a continued testing and refining process. And then we'll be talking with you more in our 2025 guide and probably further detail about that.

因此，就我們如何在損益表中看到這一點而言，我們在今年剩下的時間裡還沒有真正進行過這方面的工作。我認為我們正處於持續的測試和完善過程中。然後我們將在 2025 年指南中與您進行更多討論，並可能提供更多詳細資訊。

Got it. That's helpful. And I'm sorry, I don't mean to hog the entire call here, so apologies. But just one more if I may. I wanted to ask about the updated 2024 guidance. It looks like the implied second half net sales guidance went from down about 4.3% at the midpoint to down about 7.5%.

知道了。這很有幫助。很抱歉，我不想在這裡佔用整個通話時間，所以我很抱歉。但如果可以的話，就再講一個吧。我想詢問更新後的 2024 年指南。看起來隱含的下半年淨銷售指引從中位數下降約 4.3% 到下降約 7.5%。

But the implied second half EPS guide went from down $0.91 to $0.55 if my math is right. And so James, I was hoping maybe you could spend a little time framing the difference there just in context of the expense management efforts you're calling out. Are you investing more? If so, where are those dollars going? Just some additional color on that side, unpacking the change and any investment posturing would be helpful. Thanks.

但如果我的計算正確的話，下半年每股收益指引會從 0.91 美元下降到 0.55 美元。所以詹姆斯，我希望你能花一點時間在你所呼籲的費用管理工作的背景下闡述其中的差異。你投資更多嗎？如果是這樣，這些美元去哪了？只需在這一面添加一些額外的顏色，打開更改和任何投資姿態都會有所幫助。謝謝。

Absolutely. And that's a great question. It's something that we've looked at in terms of how we saw the first half come through as we performed to guidance towards the midpoint of our revenue guidance. You're right on top line.

絕對地。這是一個很好的問題。我們根據上半年的業績情況來研究這個問題，因為我們的業績指引達到了收入指引的中點。你就在最上面。

We have narrowed that range for where we performed under the high guide in Q1 and Q2. And then the big discussion point that we didn't anticipate when we gave guidance was a foreign currency headwind of 4%-plus that we've built through our models.

我們已經縮小了第一季和第二季在高指引下的表現範圍。然後，我們在給出指導時沒有預料到的一個重要討論點是我們透過模型建立的 4% 以上的外匯逆風。

And so when you run that foreign currency through on top line, we've brought down the top for that rationale. We've been able to hold the bottom with what we see coming through in Q3 and Q4. The pressure comes on gross margin when you see -- if you see how we performed in the quarter compared to the prior year, when you roll FX through on gross margin.

因此，當您將外幣計入頂線時，我們出於這個原因而降低了頂線。根據第三季和第四季的情況，我們已經能夠守住底部。當你看到我們本季與前一年相比的表現時，當你根據毛利率滾動外匯時，毛利率就會面臨壓力。

And then even some geographic shift that we've noticed within the Nu Skin segments of where we performed to our expectations, we're getting more revenue from some of our less profitable regions, less revenue from some of our more profitable regions. So it created a little bit of mix shift and pressure in gross margin as well as just a slight uptick in selling expense as we've invested in areas to go after performance within the plan.

然後，即使我們注意到如新細分市場中我們的表現符合我們的預期，我們也從一些利潤較低的地區獲得了更多的收入，而從一些利潤較高的地區獲得了更少的收入。因此，它造成了一點混合變化和毛利率壓力，以及銷售費用略有上升，因為我們在計劃內投資了追求績效的領域。

G&A, we continue to be hyper focused. We continue to go in and drive those cost efficiency savings that we set out to do, looking to be on pace with the original savings goal that we set out of $65 million coming out of G&A in 2024 compared to our prior year. So that's a little bit of a color of why there's pressure.

G&A，我們持續高度專注。我們將繼續致力於推動我們計劃實現的成本效率節約，希望能夠實現我們設定的最初節約目標，即與前一年相比，2024 年從一般管理費用中節省 6500 萬美元。這就是壓力存在的原因之一。

And then with that pressure on profitability comes an impact to our tax rate. If you noticed the higher tax rate that we have modeled out or we gave in our script there, we are seeing pressure on our tax rate due to the profitability by geographic segment around the world. So just flexing that through trying to get clarity on where we think we'll land from an earnings perspective.

然後，獲利能力的壓力也會對我們的稅率產生影響。如果您注意到我們已經模型化或在腳本中給出了更高的稅率，那麼我們就會看到，由於世界各地地理區域的盈利能力，我們的稅率面臨著壓力。因此，我們只是試著從獲利角度弄清楚我們的目標，從而靈活運用這一點。

Got it. That's very helpful color. I appreciate it. I'll pass it on here.

知道了。這是非常有用的顏色。我很感激。我就傳到這裡吧

Thank you. (Operator Instructions) Sydney Wagner, Jefferies LLC.

謝謝。（操作員說明）Sydney Wagner, Jefferies LLC。

This is Sydney on for Ashley Helgans. Three from us. So any update that you can give on some of the affordable luxury launches you discussed last quarter and how those have been received by the market?

這是 Ashley Helgans 的雪梨代表。我們三個。那麼，您能否介紹一下您上季度討論過的一些經濟實惠的奢侈品產品的最新情況以及市場對這些產品的反應如何？

And then second one was, last quarter, you mentioned, while you did see some pressure from the consumer side, demand for higher-priced items was still resilient. Just curious if that was a trend you still saw play out this quarter. And then just any additional color you can give on China and what you're seeing there?

第二個是，上個季度，您提到，雖然您確實看到了來自消費者方面的一些壓力，但對高價商品的需求仍然有彈性。只是好奇這是否是您本季仍然看到的趨勢。關於中國以及你在那裡所看到的情況，你還有什麼可以補充的嗎？

Yeah, sure. No, Sydney, it's great. Thanks for joining the call. Yeah. So affordable luxury, as we mentioned, we're doing quite a bit of research and development on that right now with more products to come. One product that we put out in the last quarter was a product called Peptide Pout, which is a lip application that literally does that, pouts the lips.

是的，當然。不，悉尼，這太棒了。感謝您加入通話。是的。正如我們所提到的，如此實惠的奢侈品，我們現在正在進行大量的研究和開發，並將推出更多產品。我們在上個季度推出的產品是一種名為 Peptide Pout 的產品，它是一種唇部塗抹產品，字面意思就是撅起嘴唇。

James might be wearing it right now. I can't tell. But the Peptide Pout, it was a great social sell, in fact, sold out very quickly, sold out of stock and will be a very good promotional product around the world. So that was one that we brought to market very, very quickly. And we have several more that are planned just like that over the coming quarters.

詹姆斯現在可能就穿著它。我不知道。但是勝肽噘嘴，這是一次很棒的社交銷售，事​​實上，很快就賣完了，賣到斷貨，並且將成為全球範圍內非常好的促銷產品。因此，我們非常非常快地將其推向市場。我們也計劃在未來幾季推出更多類似的產品。

They generally -- they're interesting because they -- these types of affordable luxury products are a little bit more promotional in nature, meaning that they kind of run in really quick turns and they're sold almost like in a sellout fashion. You can almost imagine some of these influencer brands that hit and they'll sell a full production run through, and then they reload.

一般來說，它們很有趣，因為它們——這些類型的負擔得起的奢侈品本質上更具促銷性，這意味著它們的銷售速度非常快，而且幾乎以一種售空的方式出售。你幾乎可以想像，其中一些影響力品牌大受歡迎，他們會銷售完整的產品，然後重新加載。

So we're seeing similar dynamics to that with Peptide Pout as we put it out there. And then with the others, we're kind of forecasting similar models. So you'll be seeing a few of those, but that's just one example of one that's moved forward.

因此，我們看到了與我們推出的 Peptide Pout 類似的動態。然後，我們與其他模型一起預測類似的模型。所以你會看到其中的一些，但這只是其中一個進展的例子。

You were asking about kind of higher-priced product resiliency. I mean I think, generally, our -- we've noticed that our devices hold up reasonably well in this kind of hyperinflationary market, while some of our other higher-end consumables tend to struggle a little bit more. So I would say that it's a little bit more mixed from a consumer behavior standpoint around high-priced items.

您詢問的是高價產品的彈性。我的意思是，我認為，總的來說，我們注意到我們的設備在這種惡性通貨膨脹的市場中表現得相當好，而我們的其他一些高端消費品往往會遇到更多困難。所以我想說，從消費者行為的角度來看，圍繞高價商品的情況有點複雜。

But our devices continue to perform well, but we see some challenges in some of the other items. So I think it's just what's -- maybe a more durable good that tends to do a little bit better. At least we're observing that.

但我們的設備仍然表現良好，但我們在其他一些專案中看到了一些挑戰。所以我認為這可能是一種更耐用的商品，而且往往會做得更好一些。至少我們正在觀察這一點。

And then to your third question around China, China just continues to be a very interesting macroeconomic market. It seems every time I drive home, I'm listening to CNBC or the Bloomberg report it, it's reading us something a little different.

關於中國的第三個問題，中國仍然是一個非常有趣的宏觀經濟市場。似乎每次我開車回家時，我都會聽 CNBC 或彭博社的報道，它給我們讀的東西有點不同。

I was over there just about a month ago, meeting with many of our employees and our team, over 800 in fact, and really interesting. There's still a lot of ambition in the market. The economy is obviously struggling over there, and so I think there's near term, call it, hesitancy built into the market. And that's why we're being very conservative on our go-forward looks.

大約一個月前我去過那裡，會見了我們的許多員工和團隊，實際上有 800 多人，非常有趣。市場上仍然有很大的野心。那裡的經濟顯然正在陷入困境，因此我認為短期內市場會出現猶豫不決的情況。這就是為什麼我們對未來的展望非常保守。

But I continue to believe heavily in the potential of China. It's still the world's second largest market. It still has a very strong consumer demand. There are a lot of local brands. Chinese brands in the beauty space, in particular, are growing at pretty aggressive pace, and that's very different than it was five to seven years ago, especially via Douyin or TikTok over there.

但我仍然堅信中國的潛力。它仍然是世界第二大市場。它仍然有非常強勁的消費需求。本土品牌很多。尤其是美容領域的中國品牌，正以相當激進的速度成長，這與五到七年前有很大不同，尤其是透過抖音或抖音。

So a lot of social brands that are of China origin are really starting to take market share over there. But as a premium device and a premium brand market, we see a long-term potential there. I just think it's going to take more time for the market to get back on its feet.

因此，許多源自中國的社交品牌確實開始佔領那裡的市場份額。但作為高端設備和高端品牌市場，我們看到了那裡的長期潛力。我只是認為市場需要更多時間才能恢復正常。

Thank you.

謝謝。

Thanks, Sydney. I think that's all of the questions we had for the call today. Appreciate all of you dialing in. We acknowledge you're juggling between other calls across the board, so we appreciate the time you're able to give us. We look forward to giving you more updates in the quarters to come as we continue to evolve our business towards our vision of becoming the world's leading beauty, wellness, and lifestyle ecosystem. So with that, we'll speak with you next quarter. Thanks a lot.

謝謝，悉尼。我想這就是我們今天電話會議提出的所有問題。感謝大家撥通電話。我們知道您正在忙於處理其他電話，因此我們非常感謝您能夠給予我們時間。我們期待在未來幾個季度為您提供更多最新信息，因為我們將繼續發展我們的業務，以實現成為世界領先的美容、健康和生活方式生態系統的願景。因此，我們將在下個季度與您交談。多謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。