Olaplex Holdings Inc (OLPX) 2023 Q1 法說會逐字稿

Greetings, and welcome to the Olaflex Holdings First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick Flaherty, Vice President of Investor Relations. Thank you, Patrick. You may begin.

您好，歡迎來到 Olaflex Holdings 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹主持人，投資者關係副總裁帕特里克弗萊厄蒂。謝謝你，帕特里克。你可以開始了。

Thank you, and good morning. Joining me today are JuE Wong, President and Chief Executive Officer; and Eric Tiziani, Chief Financial Officer. Before we start, I'd like to remind you that management will make certain statements today, which are forward-looking, including statements about the outlook of Olaplex's business and other matters referenced in the company's earnings release issued today. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in or implied by such statements. Additional information regarding these factors appears under the heading cautionary note regarding forward-looking statements in the company's earnings release and in the filings the company makes with the Securities and Exchange Commission that are available at www.sec.gov and on the Investor Relations section of the company's website at ir.olaplex.com. The forward-looking statements on this call speak only as of the original date of this call, and we undertake no obligation to update or revise any of these statements.

謝謝，早上好。今天加入我的是總裁兼首席執行官 JuE Wong；和首席財務官 Eric Tiziani。在我們開始之前，我想提醒您，管理層今天將發表某些前瞻性聲明，包括有關 Olaplex 業務前景的聲明以及公司今天發布的收益報告中提及的其他事項。每份前瞻性陳述都存在風險和不確定性，這些風險和不確定性可能導致實際結果與此類陳述中預測或暗示的結果存在重大差異。有關這些因素的更多信息出現在關於公司收益發布中前瞻性陳述的警告性說明標題下以及公司向美國證券交易委員會提交的文件中，這些文件可在 www.sec.gov 和投資者關係部分找到公司網站 ir.olaplex.com。本次電話會議的前瞻性陳述僅在本次電話會議的原始日期發表，我們不承擔更新或修改任何這些陳述的義務。

Also during this call, management will discuss certain non-GAAP financial measures, which management believes can be useful in evaluating the company's performance. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release.

同樣在此次電話會議中，管理層將討論某些非 GAAP 財務措施，管理層認為這些措施可能有助於評估公司的業績。不應孤立地考慮非 GAAP 財務措施的列報或作為根據 GAAP 編制的結果的替代。您將在公司的收益發布中找到有關這些非 GAAP 財務措施的更多信息，以及這些非 GAAP 財務措施與最直接可比的 GAAP 措施的調節。

A live broadcast of this call is also available on the Investor Relations section of the company's website at ir.olaplex.com. Additionally, during this call, management will refer to certain data points, estimates and forecasts that are based on the Ministry of publications or other publically available information as well as our internal sources.

該公司網站 ir.olaplex.com 的投資者關係部分也提供此次電話會議的現場直播。此外，在此次電話會議中，管理層將參考某些基於出版部或其他公開信息以及我們內部資源的數據點、估計和預測。

The company has not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Furthermore, this information involve assumptions and limitations, and you are cautioned not to give undue weight to these estimates. With that, I will turn the call over to JuE Wong.

公司尚未獨立驗證這些行業出版物和其他公開信息中包含的數據的準確性或完整性。此外，此信息涉及假設和限制，請注意不要過分重視這些估計。有了這個，我會把電話轉給 JuE Wong。

Thank you, Patrick, and good morning, everyone. Thank you for joining us today. This morning, we announced results for the first quarter of 2023 that were ahead of our expectations. And while we make progress, we know we have work to do to return the business to stronger growth. As discussed on our last earnings call, review 2023 as a reset year, during which we are taking actions intended to build a stronger and more resilient Olaplex.

謝謝帕特里克，大家早上好。感謝您今天加入我們。今天早上，我們公佈了 2023 年第一季度的業績，超出了我們的預期。雖然我們取得了進步，但我們知道我們還有很多工作要做，才能使業務恢復更強勁的增長。正如我們在上次財報電話會議上所討論的那樣，將 2023 年視為重新設定的一年，在此期間我們將採取旨在建立更強大、更有彈性的 Olaplex 的行動。

As I will explain in more detail shortly, during the quarter, we made progress on our priorities for the year, and we believe that we are implementing the appropriate actions for resetting the business. Yet we also recognize that there is still important work ahead of us. shifting market dynamics and macro uncertainties continue to reduce our visibility, and we remain in the early stages of this plan, achieving its intended results.

正如我稍後將更詳細地解釋的那樣，在本季度，我們在今年的優先事項上取得了進展，我們相信我們正在採取適當的行動來重置業務。然而，我們也認識到，我們面前仍有重要的工作要做。不斷變化的市場動態和宏觀不確定性繼續降低我們的知名度，我們仍處於該計劃的早期階段，以實現其預期結果。

That being said, we believe the fundamental strength of our business and the category remain and our confidence in our patent protected technology and the long-term potential for Olaplex are unchanged. Turning to a brief overview of the first quarter. Net sales of $113.8 million was slightly better than our guidance.

話雖如此，我們相信我們的業務和類別的基本實力依然存在，我們對我們的專利保護技術和 Olaplex 的長期潛力的信心沒有改變。轉向第一季度的簡要概述。 1.138 億美元的淨銷售額略好於我們的指導。

As we previously communicated, our sales decline reflected a lower baseline level of consumer demand, the continued negative impact of customer inventory rebalancing efforts from certain Pro and speciality retail customers and a difficult comparison as we lap the sell-in of a successful launch into Ulta Beauty a year ago. Overall, all 3 channels were essentially in line with our outlook.

正如我們之前所傳達的那樣，我們的銷售額下降反映了較低的消費者需求基線水平、某些專業和專業零售客戶的客戶庫存重新平衡工作的持續負面影響，以及我們將成功推出 Ulta 的銷售收入進行了艱難的比較一年前的美麗。總體而言，所有 3 個渠道基本符合我們的預期。

Lower sales coupled with our strategic decision to spend in support of our future growth with important investments in sales and marketing, R&D and workforce expansion led to adjusted EBITDA of approximately $50 million in the first quarter for an adjusted EBITDA margin of 44%. Notably, we believe the Olaplex brand remains healthy with consumers and stylists alike and our third-party external brand tracker showed consistently robust metrics through March.

較低的銷售額加上我們通過對銷售和營銷、研發和勞動力擴張的重要投資來支持我們未來增長的戰略決策，導致第一季度調整後的 EBITDA 約為 5000 萬美元，調整後的 EBITDA 利潤率為 44%。值得注意的是，我們相信 Olaplex 品牌在消費者和造型師中保持健康，並且我們的第三方外部品牌追踪器在整個 3 月份都顯示出一貫的強勁指標。

According to respondence of the survey, we continue to lead in premium hair care equity attributes ranking #1 or tied for #1 in 9 of the top 10, 15 equity statements while metrics on overall sentiment and trust in the Olaplex brand remains strong. Similarly, as evidence that our brand and technology differentiators continue to resonate with our communities, our product introductions launched during the first quarter are off to a strong start.

根據調查的回复，我們繼續在優質護髮資產屬性方面處於領先地位，在前 10 名中的 9 項中排名第一或併列第一，15 個股票報表，而 Olaplex 品牌的整體情緒和信任度指標仍然強勁。同樣，作為我們品牌和技術差異化因素繼續引起社區共鳴的證據，我們在第一季度推出的產品開局良好。

In late January, we launched NO 4D clean volume detox dry shampoo on olaplex.com, in our prochannel and with Sephora. 4D detoxifies the scalp without clogging for and neutralizes older causing collusions without the traits of white residue. 4D Is performing well and has quickly become the #1 dry shampoo at Sephora and launches with our other specialty retail and DTC partners in early May. In late March, we entered our first haircare adjacency with the launch of Lashbond and eye lash enhancing serum universally formulated to promote the appearance of thicker, longer, stronger full volume lashes, formulated with a next-generation OLAPLEX peptide complex Lashbond is (inaudible) free and ophthalmologists tested. Lashbond is our first product to launch simultaneously across channels and the launch is off to a strong start with notable performance at Sephora in the U.S. as well as Space NK in the U.K. where Lashbond has already become a top 10 beauty SKU for the retailer.

1 月下旬，我們在 olaplex.com、我們的專業渠道和絲芙蘭推出了 NO 4D clean volume detox dry shampoo。 4D 排毒頭皮而不會堵塞，併中和導致串通的舊物，而沒有白色殘留物的特徵。 4D 表現良好，並迅速成為絲芙蘭排名第一的干洗洗髮水，並於 5 月初與我們的其他專業零售和 DTC 合作夥伴一起推出。 3 月下旬，我們進入了我們的第一個護髮產品領域，推出了 Lashbond 和睫毛增強精華素，該精華素採用新一代 OLAPLEX 肽複合物配製而成，採用通用配方，可促進更濃密、更長、更濃密的豐盈睫毛 Lashbond 是（聽不清）免費和眼科醫生測試。 Lashbond 是我們首款同時跨渠道發布的產品，此次發布開局良好，在美國 Sephora 和英國 Space NK 均表現出色，Lashbond 已成為該零售商排名前 10 的美容 SKU。

Before I discuss the progress made so far on our priorities, I think it's important to revisit why we are pursuing a reset here and the benefits we expect from the activities and initiatives we are implementing. Following several years of significant growth, we are pursuing this reset as we recognize the need to invest and expand our marketing and educational outreach and ensure we have the necessary tactics, talent and platform to realize the significant opportunity we see ahead for the Olaplex brand.

在我討論迄今為止在我們的優先事項上取得的進展之前，我認為重要的是重新審視我們為什麼要在這裡進行重置以及我們期望從我們正在實施的活動和計劃中獲得的好處。經過幾年的顯著增長，我們正在尋求這種重置，因為我們認識到需要投資和擴大我們的營銷和教育範圍，並確保我們擁有必要的策略、人才和平台來實現我們為 Olaplex 品牌看到的重要機遇。

Ultimately, we expect the benefits will be multifaceted and realized across the organization. At the heart of it all, we think our actions will enable continued growth in brand awareness and identities and ensure stylists and consumers are properly educated on the superior benefits of our technology. From an operations perspective, we expect the year will see us evolve our capabilities to enhance our agility, recalibrate and rightsize our inventory levels and continue executing against our new product developments pipeline.

最終，我們預計收益將是多方面的，並在整個組織中實現。最重要的是，我們認為我們的行動將使品牌知名度和身份持續增長，並確保造型師和消費者得到適當的教育，了解我們技術的卓越優勢。從運營的角度來看，我們預計今年我們將提升我們的能力，以提高我們的敏捷性，重新調整和調整我們的庫存水平，並繼續執行我們的新產品開發管道。

And importantly, we will continue to invest in our people, further building out our team and enhancing our culture. On our last earnings call, we introduced the priorities for a reset year that we believe will position us on a more solid footing. They include accelerating investments in sales and marketing, increasing and evolving our educational assets, reasserting our position with our Pro and retail partners and improving our approach to PR.

重要的是，我們將繼續投資於我們的員工，進一步建設我們的團隊並提升我們的文化。在我們上一次的財報電話會議上，我們介紹了重新設定的一年的優先事項，我們相信這將使我們處於更穩固的基礎上。它們包括加速對銷售和營銷的投資，增加和發展我們的教育資產，重申我們在專業和零售合作夥伴中的地位，以及改進我們的公關方法。

Let me now walk you through the progress we made on these initiatives during the first quarter. Starting with sales and marketing. We continue to expect marketing inclusive of sampling and sales and marketing payroll to increase to $70 million in 2023 from $40 million in 2022. During the first quarter, we spent approximately $17 million. We are implementing a full funnel marketing approach this year. with an increase of marketing investment in strategies to generate awareness and support brand health and brand love.

現在讓我向您介紹我們在第一季度在這些舉措方面取得的進展。從銷售和營銷開始。我們繼續預計包括抽樣和銷售和營銷工資在內的營銷將從 2022 年的 4000 萬美元增加到 2023 年的 7000 萬美元。在第一季度，我們花費了大約 1700 萬美元。我們今年正在實施完整的漏斗營銷方法。隨著對戰略的營銷投資的增加，以產生意識並支持品牌健康和品牌熱愛。

We have also allocated investments and deployed resources to convert customers to our brand. To that end, we are launching a new full funnel creative campaign intended to not only amplify our scientific authority and feature the transformative results from using our outstanding products, but also highlights emotional connections with our professional and consumer communities. The campaign kicks off later this month and includes digital social and out-of-home activations.

我們還分配了投資並部署了資源，以將客戶轉化為我們的品牌。為此，我們正在發起一項新的全漏斗創意活動，旨在不僅擴大我們的科學權威並突出使用我們出色產品的變革性成果，而且還強調與我們的專業和消費者社區的情感聯繫。該活動將於本月晚些時候開始，包括數字社交和戶外活動。

We intend to measure the impact of this program as we go in order to optimize mix and spending as we progress through the year. We also continue to execute and enhance sampling program designed to expand trial, whereby we expect to deliver roughly 10 million samples in 2023. Strategic programs this year include distributing samples via oloplex.com, sampling in Sephora's buy online pick up in-store offering, and providing a #3 sample with any Olaplex service at Ulta beauty salons.

我們打算在進行過程中衡量該計劃的影響，以便在我們全年取得進展時優化組合和支出。我們還繼續執行和加強旨在擴大試驗範圍的抽樣計劃，我們預計將在 2023 年交付大約 1000 萬份樣品。今年的戰略計劃包括通過 oloplex.com 分發樣品，在絲芙蘭的在線購買店內提貨服務中抽樣，並在 Ulta 美容院提供任何 Olaplex 服務的#3 樣品。

Additionally, we intend to implement programs with international partners, including Sephora Europe and Dubai, making our first foray into sampling internationally. We are still in the early stages with this enhanced program but remain confident in our ability to acquire new users to the brand, given how successful sampling has been with conversion in the past.

此外，我們打算與包括絲芙蘭歐洲和迪拜在內的國際合作夥伴實施計劃，從而首次涉足國際抽樣。我們仍處於此增強計劃的早期階段，但鑑於過去抽樣與轉化的成功程度，我們對我們為該品牌吸引新用戶的能力充滿信心。

As it relates to education, our refreshed educational assets behind the core of our assortment with a focus around #3 are now being deployed, and we are pleased with the early feedback on the campaign. As a reminder, the goal of this work is to better educate stylists and consumers about how to use our core products, reinforce the benefits of our products with versatile usage and tips and introduce new claims and testimonials about the superiority of the results we deliver. Work is also underway to evolve and revamp our core educational curriculum for use across all channels and enhance the education content on our Pro website and app.

由於它與教育相關，我們正在部署以圍繞#3 為重點的分類核心背後的更新教育資產，我們對活動的早期反饋感到滿意。提醒一下，這項工作的目標是更好地教育造型師和消費者如何使用我們的核心產品，通過多種用途和技巧加強我們產品的優勢，並介紹關於我們提供的結果的優越性的新聲明和推薦。我們還在努力發展和改進我們的核心教育課程，以供所有渠道使用，並增強我們專業網站和應用程序上的教育內容。

From a leadership perspective, we are excited to announce that John Barone has joined us as our new Vice President of Global Education and Customer Experience. With over 35 years of experience in the professional stylist industry, John is highly regarded in the stylist community with deep expertise in beauty education, having served in various education roles with Aveda, Sebastian, Wella and Karl Salon. Turning to our efforts to reassert outstanding with our professional and specialty retail partners. For our Pro business, we continue to build our team in order to increase our frequency of contact with distributors, their sales teams and salons.

從領導的角度來看，我們很高興地宣布 John Barone 加入我們，擔任我們新的全球教育和客戶體驗副總裁。約翰在專業造型師行業擁有超過 35 年的經驗，在造型師社區享有很高的聲譽，在美容教育方面擁有深厚的專業知識，曾在 Aveda、Sebastian、Wella 和 Karl Salon 擔任過各種教育職務。轉向我們的努力，以重申與我們的專業和專業零售合作夥伴的傑出表現。對於我們的專業業務，我們繼續建立我們的團隊，以增加我們與經銷商、他們的銷售團隊和沙龍的聯繫頻率。

We have accelerated planning with key distributors, creating joint business plans that include new initiatives and programs and working together to identify and pursue new business development opportunities and to enhance our partnership with prestige and opinion-leading salons. We have continued to enter new and nurture existing partnerships through our dedicated program, collaborating on digital and social content as well as high-profile events such as New York Fashion Week.

我們加快了與主要經銷商的規劃，制定了包括新舉措和計劃在內的聯合業務計劃，並共同努力確定和尋求新的業務發展機會，並加強我們與聲望和意見領先的沙龍的合作夥伴關係。我們繼續通過我們的專門計劃建立新的和培育現有的合作夥伴關係，在數字和社交內容以及紐約時裝周等備受矚目的活動上進行合作。

Within specialty retail, we rolled out the third-party sale sales and education team trained by Olaplex into approximately 400 Sephora and Ulta Beauty retail store to directly engage with consumers and educate in-store beauty advisers. We are pleased with the program so far. We have shown a meaningful uplift in sales in participating doors and demonstrates the importance and influence Olaplex can have in driving in-person education.

在專業零售領域，我們將由 Olaplex 培訓的第三方銷售和教育團隊部署到大約 400 家絲芙蘭和 Ulta Beauty 零售店，以直接與消費者互動並對店內美容顧問進行培訓。到目前為止，我們對該計劃感到滿意。我們已經在參與的門中顯示出有意義的銷售增長，並展示了 Olaplex 在推動面對面教育方面的重要性和影響力。

Internationally, we are happy with our continued expansion. We recently anniversaried our full fleet rollout with Sephora Europe and have partnered with the team to develop strategic marketing and education campaigns to drive further penetration with shoppers. With Douglas, a specialty retailer in Europe, we are rolling out into approximately 280 additional doors across Germany and the Netherlands, and we have partnered with [Duty Free] to launch our travel retail presence in 12 U.K. airports and expect to launch in additional countries over time.

在國際上，我們對我們的持續擴張感到高興。我們最近與 Sephora Europe 一起推出了完整的車隊，並與該團隊合作開展戰略營銷和教育活動，以進一步推動對購物者的滲透。與歐洲的專業零售商 Douglas 一起，我們在德國和荷蘭開設了大約 280 個額外的門店，並且我們與 [Duty Free] 合作，在英國 12 個機場推出我們的旅遊零售業務，並期望在更多國家/地區推出隨著時間的推移。

Our fourth priority this year is building out our PR capability. By leveraging our social channels, we have been proactively distributing content focused on correcting misinformation about Olaplex in the market. We launched a section on our website entitled Hair Health, which acts as a hub and a resource for consumers and stylists to assess accurate information about the size behind our products, our ingredients and tips for usage.

我們今年的第四個優先事項是建立我們的公關能力。通過利用我們的社交渠道，我們一直在積極分發內容，重點是糾正市場上有關 Olaplex 的錯誤信息。我們在我們的網站上推出了一個名為“頭髮健康”的部分，作為消費者和造型師的中心和資源，可以評估有關我們產品背後的尺寸、我們的成分和使用技巧的準確信息。

Similarly, we are creating educational toolkits for our Pro and specialty retail channels to supply their employees with the necessary information and details to respond to and correct misperceptions about our brand. And lastly, we are engaging a group of leaders in dermatology to form the Olaplex Scientific Advisory Board comprised of medical and scientific experts. The Olaplex Scientific Advisory Board in partnership with our own internal team members will help Olaplex accomplish our mission of improving hair health through products and education for all of our customers.

同樣，我們正在為我們的專業和專業零售渠道創建教育工具包，為其員工提供必要的信息和詳細信息，以回應和糾正對我們品牌的誤解。最後，我們正在聘請一群皮膚病學領域的領導者組成由醫學和科學專家組成的 Olaplex 科學顧問委員會。 Olaplex 科學顧問委員會與我們自己的內部團隊成員合作，將幫助 Olaplex 完成我們的使命，即通過為所有客戶提供產品和教育來改善頭髮健康。

Underpinning our efforts this year is our continued focus on building upon our strong corporate culture with highly talented and passionate team members. To that end, we are excited to announce 2 new additions to our senior leadership team. John Kappler has been appointed Chief Revenue Officer, leading and overseeing the sales organization across all 3 of our channels. Prior to joining Olaplex, John served as the Head of U.S. and Global Sales at several consumer products companies across multiple categories. After several sales roles at the Pillsbury Company, John was a Head of Global Sales for 9 years as a consumer health care products company BNF.

支撐我們今年努力的是我們繼續專注於建立我們強大的企業文化，擁有才華橫溢、充滿激情的團隊成員。為此，我們很高興地宣布 2 名新成員加入我們的高級領導團隊。 John Kappler 已被任命為首席營收官，領導和監督我們所有 3 個渠道的銷售組織。在加入 Olaplex 之前，John 曾在多個類別的多家消費品公司擔任美國和全球銷售主管。在 Pillsbury Company 擔任多個銷售職位後，John 在一家消費保健品公司 BNF 擔任了 9 年的全球銷售主管。

In addition, Nabanita Choudhry has joined us as Senior Vice President, Global DTC. Nabanita has over 15 years of experience in e-commerce digital marketing and loyalty, most recently serving as the head of e-commerce at Nestle and Expresso USA. As I have said, our path forward for this year, it's important to restate our focus on our core mission of making people feel more confident with healthier, more beautiful hair.

此外，Nabanita Choudhry 已加入我們，擔任全球 DTC 高級副總裁。 Nabanita 在電子商務數字營銷和忠誠度方面擁有超過 15 年的經驗，最近擔任 Nestle 和 Expresso USA 的電子商務主管。正如我所說，我們今年的前進道路，重要的是重申我們的重點是我們的核心使命，即讓人們對更健康、更美麗的頭髮更有信心。

With our science-based technology and our patented this amino ingredient we are uniquely positioned to improve the hair health of millions of consumers around the world. We are powered by the trust and passion we have built with communities around us. The professional stylist community has been the foundation of our brand and continues to be our biggest advocates. We are committed to the professional stylist community supporting them with education and the tools to enable them to grow their business and deepen connections with the clients.

憑藉我們以科學為基礎的技術和我們獲得專利的這種氨基成分，我們在改善全球數百萬消費者的頭髮健康方面處於獨特的地位。我們與周圍社區建立的信任和熱情為我們提供了動力。專業造型師社區一直是我們品牌的基礎，並將繼續成為我們最大的擁護者。我們致力於為專業造型師社區提供教育和工具支持，使他們能夠發展業務並加深與客戶的聯繫。

In conclusion, although we had a challenging start to the year, our first quarter performance was in line with our expectations, and we made progress on the priorities we laid out for our reset year. Encouragingly, Olaplex remains the category leader with proven patented technology, one-of-a-kind engagement with stylists and consumers and an innovation platform point to continue disrupting the industry. We are confident that the actions we are taking this year will allow Olaplex to resume consistent and sustained sales growth at continued top-tier profitability in the future.

總而言之，儘管我們今年的開局充滿挑戰，但我們第一季度的表現符合我們的預期，並且我們在為重新設定的一年制定的優先事項上取得了進展。令人鼓舞的是，Olaplex 憑藉經過驗證的專利技術、與造型師和消費者的獨一無二的互動以及繼續顛覆行業的創新平台點，仍然是該類別的領導者。我們相信，我們今年採取的行動將使 Olaplex 能夠在未來繼續保持頂級盈利能力的情況下恢復持續和持續的銷售增長。

I will now turn the call over to Eric to cover our first quarter results in more detail and provide additional information on our outlook for 2023.

我現在將電話轉給埃里克，以更詳細地介紹我們第一季度的業績，並提供有關我們 2023 年展望的更多信息。

Thank you, JuE, and good morning, everyone. In the first quarter of 2023, net sales declined 38.9% to $113.8 million versus $186.2 million last year. We believe that the quarter was negatively impacted by approximately $21 million of year-over-year inventory rebalancing at certain key professional and specialty retail customers.

謝謝你，JuE，大家早上好。 2023 年第一季度，淨銷售額下降 38.9% 至 1.138 億美元，而去年同期為 1.862 億美元。我們認為，本季度受到某些主要專業和專業零售客戶約 2100 萬美元的同比庫存再平衡的負面影響。

Also, we faced a difficult comparison relative to the first quarter of 2022 when we shipped an additional $10 million of inventory pipeline to support our strong launch in Ulta. Supply channel, professional channel sales were slightly ahead of our expectations and declined 37.2% to $48.4 million versus a 62.6% increase last year. Specialty Retail sales decreased 45.8% to $34.9 million, following 102.5% growth in the prior year period. And our direct-to-consumer channel sales were down 31.9% to $30.5 million compared to a 15.1% increase last year.

此外，與 2022 年第一季度相比，我們面臨著艱難的比較，當時我們額外運送了 1000 萬美元的庫存管道以支持我們在 Ulta 的強勁發布。供應渠道、專業渠道銷售額略高於我們的預期，下降 37.2% 至 4840 萬美元，而去年增長 62.6%。繼去年同期增長 102.5% 之後，專業零售銷售額下降 45.8% 至 3,490 萬美元。我們直接面向消費者的渠道銷售額下降了 31.9% 至 3050 萬美元，而去年增長了 15.1%。

Geographically, international sales were flat for the quarter, while the U.S. was down 16.3%, with the impacts of customer inventory rebalancing and the lapping of the Ulta Beauty launch specifically impacting the U.S. Moving down the income statement. Adjusted gross profit margin was 72.6% declining 650 basis points from 79.1% in the first quarter of 2022. Approximately 250 basis points of this contraction reflects deleverage and inflation in our warehousing and distribution costs, 230 basis points related to higher inventory obsolescence reserve and 110 basis points from inflation on product costs, with the remainder from increased sampling and unfavorable customer mix.

從地域上看，本季度國際銷售額持平，而美國下降了 16.3%，客戶庫存重新平衡的影響和 Ulta Beauty 推出的重疊特別影響了美國。下移損益表。調整後的毛利率為 72.6%，較 2022 年第一季度的 79.1% 下降了 650 個基點。這一收縮約 250 個基點反映了我們倉儲和配送成本的去槓桿化和通脹，230 個基點與較高的庫存過時準備金和 110基點來自產品成本的通貨膨脹，其餘來自增加的抽樣和不利的客戶組合。

These more than offset the benefit of the price increase we took from July 1, 2022, and favorable channel mix. Adjusted SG&A increased 59.6% to $32.9 million from $20.6 million in Q1 2022. The $12.3 million increase in adjusted SG&A from prior year is primarily the result of an $8.6 million increase in sales and marketing expense to drive demand as well as an increase in payroll attributable to workforce expansion and other related expenses.

這些抵消了我們從 2022 年 7 月 1 日起的價格上漲和有利的渠道組合帶來的好處。調整後的 SG&A 從 2022 年第一季度的 2060 萬美元增長 59.6% 至 3290 萬美元。調整後的 SG&A 比上一年增加 1230 萬美元的主要原因是銷售和營銷費用增加 860 萬美元以推動需求以及應佔工資增加擴大勞動力和其他相關費用。

Adjusted EBITDA declined 60.4% to $50 million versus $126.4 million in the first quarter of 2022. Adjusted EBITDA margin was 44% compared to 67.9% a year ago. Adjusted net income decreased 65.7% year-over-year to $31.4 million or $0.05 per diluted share from $91.4 million or $0.13 per diluted share in the 2022 first quarter. Adjusted net income benefited from lower interest expense year-over-year due to our debt paydown and refinance in the first quarter of 2022 and higher interest income.

調整後的 EBITDA 下降 60.4% 至 5000 萬美元，而 2022 年第一季度為 1.264 億美元。調整後的 EBITDA 利潤率為 44%，而一年前為 67.9%。調整後的淨收入同比下降 65.7%，從 2022 年第一季度的 9140 萬美元或攤薄後每股收益 0.13 美元降至 3140 萬美元或攤薄後每股收益 0.05 美元。由於我們在 2022 年第一季度的債務償還和再融資以及更高的利息收入，調整後的淨收入受益於利息支出同比下降。

Now turning to our balance sheet. Inventory at the end of the first quarter was $132 million, down from $144.4 million at the end of the fourth quarter. The reduction in inventory levels was a result of our focus on aligning production levels to the new sales forecast, which more than offset building inventory of new SKUs as we prepared for product launches this year.

現在轉向我們的資產負債表。第一季度末的庫存為 1.32 億美元，低於第四季度末的 1.444 億美元。庫存水平的下降是我們專注於使生產水平與新的銷售預測保持一致的結果，這大大抵消了我們為今年的產品發布做準備時建立新 SKU 的庫存。

Turning to cash flow. During the first quarter, we generated $48.1 million in cash from operations. As we shared in past calls, we anticipate another year of healthy cash generation as we maintain a high level of profitability and improve our working capital position, primarily through lower inventory. We ended the quarter with $369.3 million in cash and equivalents, which is generating interest income at a rate of 4% to 5%. Long-term debt, net of current portion and deferred fees was $653 million.

轉向現金流。第一季度，我們從運營中產生了 4810 萬美元的現金。正如我們在過去的電話會議中分享的那樣，我們預計又會產生健康的現金，因為我們主要通過降低庫存來保持高水平的盈利能力並改善我們的營運資金狀況。我們在本季度結束時擁有 3.693 億美元的現金和等價物，這些現金和等價物以 4% 至 5% 的利率產生利息收入。扣除流動部分和遞延費用後的長期債務為 6.53 億美元。

Now turning to our financial outlook. The fiscal year 2023 guidance that we provided on our last earnings call is unchanged. Although we continue to operate in a dynamic environment with underlying macroeconomic uncertainty, our team delivered during the first quarter, and we are moving forward with the continued deployment of strategic investments to strengthen our market position.

現在轉向我們的財務前景。我們在上次財報電話會議上提供的 2023 財年指引沒有改變。儘管我們繼續在具有潛在宏觀經濟不確定性的動態環境中運營，但我們的團隊在第一季度交付了成果，我們正在繼續部署戰略投資以鞏固我們的市場地位。

Let me walk you through our assumptions for the remainder of the year. Beginning with the second quarter, we now currently expect net sales will only modestly improve sequentially in absolute dollars compared to Q1 and remained down significantly compared to the year ago period. As a reminder, we are lapping 2 challenging comparators from Q2 2022.

讓我向您介紹我們對今年剩餘時間的假設。從第二季度開始，我們目前預計淨銷售額與第一季度相比僅會按絕對美元計算略有增長，並且與去年同期相比仍將大幅下降。提醒一下，我們將從 2022 年第二季度開始對 2 個具有挑戰性的比較器進行測試。

First, we will be lapping an approximately $22 million net sales impact in the second quarter of 2022 from the introduction of one leader size offerings in the North America professional channel, which we do not expect to offset in 2023. Second, in the second quarter of last year, we experienced some pull forward in demand as some professional customers chose to buy ahead of our announced price increases a year ago. Although the impact of this pull forward reverts in Q3, this results in a $10 million growth headwind in the second quarter of 2023. Also, we anticipate that the second quarter will continue to be impacted by the continuation of a lower baseline level of demand.

首先，我們將在 2022 年第二季度通過在北美專業渠道推出一個領先規模的產品帶來大約 2200 萬美元的淨銷售額影響，我們預計這不會在 2023 年抵消。第二，在第二季度去年，我們經歷了一些需求的拉動，因為一些專業客戶選擇在我們一年前宣布的價格上漲之前購買。儘管這種拉動的影響在第三季度恢復，但這會導致 2023 年第二季度出現 1000 萬美元的增長逆風。此外，我們預計第二季度將繼續受到較低基線需求水平持續的影響。

Our increased investments in education, sales and marketing have recently been deployed and we expect to take time for these investments, particularly those in the upper funnel and other awareness building activities to generate improved consumer takeaway and have an impact on our shipments to customers. We expect the professional channel to be most challenged, partially due to facing a difficult comparison from last year's 1 liter launch and the pull forward impact from the price increases a year ago, followed by specialty retail.

我們最近部署了對教育、銷售和營銷的更多投資，我們希望花時間進行這些投資，特別是在漏斗上部的投資和其他意識培養活動，以產生更好的消費者外賣，並對我們向客戶的發貨產生影響。我們預計專業渠道面臨的挑戰最大，部分原因是面臨與去年 1 升推出的困難比較以及一年前價格上漲的拉動影響，其次是專業零售。

We believe the DTC channel will be the least impacted. In terms of profitability, due to timing shifts of sales and marketing spend into the second quarter, we expect that the second quarter will be a heavier marketing investment quarter, and therefore, we now believe the most adjusted EBITDA margin contraction of the year will occur in Q2. As we move into the second half of the year, we expect both net sales and profit trends to improve as we expect to more fully benefit from the net impact of new product introductions and additional distribution gains that are strategic and build brand equity. We also expect to benefit from an improvement in baseline demand as our increased investments in education, sales and marketing begin to yield returns.

我們認為 DTC 渠道受影響最小。就盈利能力而言，由於銷售和營銷支出的時間轉移到第二季度，我們預計第二季度將是營銷投資較多的季度，因此，我們現在認為今年調整後的 EBITDA 利潤率收縮幅度最大在第二季度。隨著我們進入今年下半年，我們預計淨銷售額和利潤趨勢都會有所改善，因為我們預計將更充分地受益於新產品推出的淨影響以及具有戰略意義和建立品牌資產的額外分銷收益。隨著我們在教育、銷售和營銷方面增加的投資開始產生回報，我們還預計將從基線需求的改善中受益。

You will see that this implies improvement in the back half compared to the first half, ultimately leading to growth in the fourth quarter and as we enter 2024. Taken together, for fiscal year 2023, we expect net sales in the range of $563 million to $634 million, adjusted net income in the range of $176 million to $224 million, and adjusted EBITDA in the range of $261 million to $322 million.

您會看到，這意味著下半年與上半年相比有所改善，最終導致第四季度和我們進入 2024 年時實現增長。總的來說，對於 2023 財年，我們預計淨銷售額在 5.63 億美元至 5.63 億美元之間。 6.34 億美元，調整後淨收入在 1.76 億美元至 2.24 億美元之間，調整後 EBITDA 在 2.61 億美元至 3.22 億美元之間。

Turning to adjusted gross margin. We continue to anticipate a 300 to 400 basis point decline in gross margin for the year due to inflation in warehousing and distribution costs and deleverage from lower sales volumes. This more than offsets the positive impact of cost savings and price increases implemented in the second half of 2022.

轉向調整後的毛利率。由於倉儲和分銷成本的上漲以及銷量下降導致的去槓桿化，我們繼續預計今年毛利率將下降 300 至 400 個基點。這遠遠抵消了 2022 年下半年實施的成本節約和價格上漲的積極影響。

In the medium term, we believe that we can return closer to our historical adjusted gross margin levels in the mid-70% range as we work through higher costs, inventory obsolescence impacts and as baseline demand improves. Given the confidence in our long-term strategy, we are continuing to invest for the long-term health of the business.

從中期來看，我們認為，隨著成本上升、庫存過時的影響以及基線需求的改善，我們可以回到更接近 70% 左右的歷史調整後毛利率水平。鑑於對我們長期戰略的信心，我們將繼續為業務的長期健康投資。

We expect adjusted EBITDA margin in the range of 46.4% to 50.8% for 2023, down from 16.9% last year. As I mentioned earlier, we now believe the most adjusted EBITDA margin contraction will occur in Q2. We believe adjusted EBITDA margin rate will improve in the second half relative to the first half as an improvement in the top line drives operating leverage. We continue to expect interest expense to be $40 million and adjusted effective tax rate of approximately 20% for the year.

我們預計 2023 年調整後的 EBITDA 利潤率在 46.4% 至 50.8% 之間，低於去年的 16.9%。正如我之前提到的，我們現在認為調整後的 EBITDA 利潤率收縮幅度最大的將出現在第二季度。我們認為下半年調整後的 EBITDA 利潤率將相對於上半年有所改善，因為頂線的改善推動了經營槓桿。我們繼續預計今年的利息支出為 4000 萬美元，調整後的有效稅率約為 20%。

And as I mentioned last quarter, we anticipate another year of healthy cash generation in 2023 as profitability levels remain high, and we improve our working capital position. In summary, we are in the early stages of our reset year, but remain committed to improving the business and taking the necessary actions to enable the next phase of growth for Olaplex.

正如我在上個季度提到的那樣，我們預計 2023 年將再次產生健康的現金，因為盈利水平仍然很高，並且我們改善了營運資金狀況。總而言之，我們正處於重置年的早期階段，但仍致力於改善業務並採取必要行動以實現 Olaplex 下一階段的增長。

We are deploying initiatives that have been successful for us in the past. And while we believe it may take time for investment to have an impact, we are confident we have the right strategies in place for improving demand. With our competitive differentiators, execution of our priorities, A solid balance sheet, high profitability and strong cash generation, we believe we are well positioned to navigate the near-term headwinds and emerge in an even stronger position. This concludes our prepared remarks. We will now turn the call back over to the operator for questions. Operator?

我們正在部署過去對我們成功的舉措。雖然我們認為投資產生影響可能需要時間，但我們相信我們已經制定了正確的戰略來改善需求。憑藉我們的競爭優勢、優先事項的執行、穩健的資產負債表、高盈利能力和強勁的現金產生能力，我們相信我們有能力應對近期的逆風，並處於更有利的地位。我們準備好的發言到此結束。我們現在將把電話轉回給接線員提問。操作員？

(Operator Instructions)

（操作員說明）

Our first questions come from the line of Olivia Tong with Raymond James.

我們的第一個問題來自 Olivia Tong 和 Raymond James 的對話。

I wanted to ask you 2 questions. First, on promotion. Clearly, promotions been picking up. So can you talk about to what extent this has been driven by you versus the retailers? And at least obviously seen some products ending up in channels you probably didn't intend. So can you talk about what actions you're taking to control that? And then you mentioned getting gross margin back to somewhere in the mid-70s. If you could talk about the drivers to get back there, that would be helpful, too.

我想問你2個問題。第一，關於推廣。顯然，促銷活動一直在增加。那麼你能談談這在多大程度上是由你和零售商推動的嗎？至少很明顯看到一些產品最終出現在您可能不希望出現的渠道中。那麼你能談談你正在採取什麼行動來控制它嗎？然後你提到讓毛利率回到 70 年代中期的某個水平。如果你能談談回到那裡的司機，那也會有幫助。

Thanks, Olivia, for the question. What I will do is I'll take the promotion question and then have Eric comment on the diversion and the gross margin question. So I just want to be very clear, when we participate in promotion, we have said it before that we do promotions to really acquire new customers to the brand as well as allowing our loyal customers to buy deeper into the brand.

謝謝奧利維亞提出這個問題。我要做的是接受促銷問題，然後讓埃里克評論轉移和毛利率問題。所以我只想非常清楚，當我們參與促銷時，我們之前已經說過，我們進行促銷是為了真正為品牌獲取新客戶，並讓我們的忠實客戶更深入地購買品牌。

And so as such, we partner with retailers on some of their promotions that really drive those goals that we have with them. So you've seen us in participation with Sephora in BI. But then we don't do anything that is off the curve that doesn't drive those kind of programming. So hopefully, that answers your question because what we want to be very clear again to double down is that we just don't do promotions indiscriminately for the sake of just driving sales.

因此，我們與零售商合作開展一些促銷活動，這些促銷活動真正推動了我們與他們的目標。所以你已經看到我們在 BI 中與 Sephora 的合作。但是，我們不會做任何不會推動此類編程的偏離曲線的事情。所以希望這能回答你的問題，因為我們想再次非常清楚地加倍努力，我們不會為了推動銷售而不加選擇地進行促銷。

Thanks JuE. I'll take your question on diversion first. So just to be clear, Olaplex has not changed the selling model. We do not sell our products into grocery stores or other mass retailers. When we find products in unauthorized channels, we thoroughly investigate who supplied those products and take commercial and legal actions to prevent further diversion.

謝謝 JuE。我會先回答你關於轉移的問題。所以需要明確的是，Olaplex 並未改變銷售模式。我們不向雜貨店或其他大型零售商銷售我們的產品。當我們在未經授權的渠道中發現產品時，我們會徹底調查誰提供了這些產品，並採取商業和法律行動來防止進一步轉移。

We use tools on our products like QR codes. And I would just say that sadly, diversion is a problem that all consumer products, manufacturer space, especially in beauty and fashion. And we're striving to minimize those opportunities for diversion. Based on the tracking we've been able to monitor, we believe the overall diverted volume in these channels remains relatively small. And your next question was on gross margin and getting to the mid-70s adjusted gross margin and what are the drivers of that?

我們在產品上使用二維碼等工具。我只想說，可悲的是，轉移是所有消費品、製造商空間的問題，尤其是在美容和時尚領域。我們正在努力減少這些轉移注意力的機會。根據我們能夠監控的跟踪情況，我們認為這些渠道的總體轉移量仍然相對較小。你的下一個問題是關於毛利率和調整後的毛利率達到 70 年代中期，其驅動因素是什麼？

I would just say, as we return to growth, we expect volume leverage to help on the fixed cost component of that, specifically our fixed warehousing cost. Also, as we continue to work our own inventory levels down to our target levels that lowers those warehousing costs and enabled us actually worked through some of the higher cost inventory in our system and realize some of the benefits we're seeing in a more stable supply chain environment with costs coming down. And the last thing and the last driver there is the savings initiatives that we're putting in forward through our Fuel for Growth program, we see efficiency opportunities that we think can support adjusted gross margin at that level in the medium term.

我只想說，隨著我們恢復增長，我們預計銷量槓桿將有助於解決其中的固定成本部分，特別是我們的固定倉儲成本。此外，隨著我們繼續將我們自己的庫存水平降低到我們的目標水平，這降低了這些倉儲成本，並使我們能夠實際處理我們系統中一些成本較高的庫存，並實現我們在更穩定的環境中看到的一些好處成本下降的供應鏈環境。最後一件事和最後一個驅動因素是我們通過我們的增長燃料計劃提出的儲蓄計劃，我們看到了我們認為可以在中期支持該水平調整後毛利率的效率機會。

If I could just follow up one quick question, just early read-throughs on the last serum product and how that influences your decision-making around expanding beyond (inaudible).

如果我可以跟進一個簡單的問題，那就是對最後一种血清產品的早期通讀，以及它如何影響你圍繞擴展超越（聽不清）的決策。

Thanks, Olivia. I'll take that question on Lash. So Lash is off to a great start, as you have heard from our call just now. And what is encouraging as it validates that our technology can actually play in adjacency. So we will continue to monitor the success of it and how it's doing. And as we have said before, our technology has cross-category benefits and opportunities, whether it's in skin care or nail care.

謝謝，奧利維亞。我會在 Lash 上回答這個問題。正如您剛才從我們的電話中聽到的那樣，Lash 有了一個良好的開端。令人鼓舞的是，它證實了我們的技術實際上可以在鄰接中發揮作用。因此，我們將繼續監控它的成功以及它的表現。正如我們之前所說，我們的技術具有跨類別的優勢和機會，無論是在皮膚護理還是指甲護理方面。

So this is a great example of us having permission to play in an adjacent category having been have already been the top 10 beauty SKU at base NK in the U.K. and also a strong seller at Sephora.

因此，這是一個很好的例子，說明我們獲准在相鄰類別中發揮作用，我們已經成為英國 base NK 的前 10 大美容 SKU，也是絲芙蘭的暢銷產品。

Our next questions come from the line of Rob Ottenstein with Evercore.

我們的下一個問題來自 Evercore 的 Rob Ottenstein。

Great. A couple of questions. First and perhaps most important, obviously, the demand for the core products, the repeat purchases there. is an issue and there's a lot of possibilities, right? There's been the misinformation in social media that's been horrible. You've cited in the past competition you did a price increase.

偉大的。幾個問題。首先，也許是最重要的，顯然是對核心產品的需求，即那裡的重複購買。是一個問題，而且有很多可能性，對吧？社交媒體上的錯誤信息非常可怕。你在過去的競爭中提到你提價了。

We don't know to what extent that had an impact. So just -- and I know it's really hard to be precise on this, but if you could kind of give us your best sense of kind of the 2 or 3 drivers that have been most impactful on the base level of demand of the core products. And whether over the quarter and into April now if you're starting to see any abatement in any of those negative factors. So that would be my first question.

我們不知道這在多大程度上產生了影響。所以只是 - 我知道這真的很難準確，但如果你能給我們最好的感覺，那就是對核心產品的基本需求水平影響最大的 2 或 3 個驅動因素.如果您開始看到這些負面因素中的任何一個有所減弱，那麼無論是在本季度還是現在進入 4 月。所以這是我的第一個問題。

Okay. Thanks, Robert, for that question. Let me take that. And then, Eric, if you want to add any or build on it, please do so. So first and foremost, we don't believe that price increase is a driver. In fact, we believe that it's a combination of factors, whether it's the macro environment, some more entrants into the space, higher level of discounting in the industry and some of the misinformation about our brand.

好的。羅伯特，謝謝你提出這個問題。讓我拿那個。然後，埃里克，如果你想添加或構建它，請這樣做。因此，首先，我們不認為價格上漲是驅動因素。事實上，我們認為這是多種因素的結合，無論是宏觀環境、更多進入該領域的人、行業更高水平的折扣以及關於我們品牌的一些錯誤信息。

But from the data we have seen in terms of sell-out trends, we have seen a stability since we reported last quarter, and we expect it to continue to do so. And that is because of all the execution that we are putting through in both sales and marketing, that includes people in store, the education, the sampling. So to answer your question as to what is the reason there is a combination of factors, as I've mentioned, but we are addressing that with the education, with the people in store, with a sampling program, with a more assertive PR program to correct the narrative that you are hearing that is a misinformation in the marketplace. And Eric, do you want to build on anything?

但從我們在售罄趨勢方面看到的數據來看，自上個季度報告以來我們已經看到了穩定性，我們預計它會繼續保持這種狀態。這是因為我們在銷售和營銷方面的所有執行，包括店內人員、教育和抽樣。所以要回答你的問題是什麼原因，正如我已經提到的，但我們正在通過教育、店內人員、抽樣計劃和更自信的公關計劃來解決這個問題糾正您所聽到的市場上的錯誤信息。埃里克，你想建立在任何東西之上嗎？

No, you said that, Julie, I would just echo we've seen sellout trends stable since our last call, and we're assuming improvement in that trend based on our actions and investments into the second half of the year.

不，你說過，朱莉，我只是回應自上次電話會議以來我們已經看到售罄趨勢穩定，並且我們假設根據我們對今年下半年的行動和投資，這種趨勢會有所改善。

Great. So you're seeing some traction there. That's great. And then shifting over to the international how can you -- just give me a little bit more detail in terms of your ability to get more distribution internationally? I know you mentioned you're going into some more Douglas stores.

偉大的。所以你在那裡看到了一些牽引力。那太棒了。然後轉向國際，你怎麼能 - 就你在國際上獲得更多分銷的能力向我提供更多細節？我知道你提到你要去更多的道格拉斯商店。

When I was in Europe, your product is just selling off the shelf and Sephora and it was incredibly well placed and well positioned. So in that context, it's a little surprising that you're not up and doing better internationally given the still low levels of distribution and the more earlier stage in the brand's development. So perhaps you could give us a little bit more sense of what's going on in Europe.

當我在歐洲的時候，你們的產品剛剛在貨架上和絲芙蘭銷售，而且它的位置和定位都非常好。因此，在這種情況下，鑑於分銷水平仍然很低且品牌發展處於更早期階段，你沒有在國際上做得更好，這有點令人驚訝。所以也許你可以讓我們更多地了解歐洲正在發生的事情。

So let me just take that. We have said that in 2023 is our reset year. So what we want to do is to really go deeper with our existing distribution and therefore, anniversarying Sephora in Europe, adding 280 doors to Douglas are part of that strategy so that we can be an anchor brand and a brand that truly delivers performance when it comes to not only in the products but also in the revenue driving for those retailers.

所以讓我接受這個。我們說過，2023 年是我們的重置年。所以我們想做的是真正深入我們現有的分銷，因此，在歐洲慶祝絲芙蘭週年紀念，為道格拉斯增加 280 家門店是該戰略的一部分，這樣我們就可以成為一個主力品牌和一個真正提供績效的品牌。不僅涉及產品，還涉及這些零售商的收入驅動。

In terms of international, again, you can see there are other geographies that we have not gotten ourselves into in a meaningful way. Weather is in Asia, in the Middle East, in Latin America, and those are really ripe for the picking because when they see how the brand penetrates and delivers in North America, in Western Europe, it really drives brand awareness, brand recognition and brand desire.

在國際方面，你可以再次看到我們還沒有以有意義的方式進入其他地區。亞洲、中東、拉丁美洲的天氣已經成熟，因為當他們看到品牌如何在北美、西歐滲透和交付時，它真正推動了品牌知名度、品牌認知度和品牌慾望。

So international is definitely a huge opportunity for Olaplex, but we want to continue to build that foundation to make our brand more resilient and stronger for now and for the future.

因此，國際市場對 Olaplex 來說絕對是一個巨大的機會，但我們希望繼續打好這個基礎，讓我們的品牌在現在和未來都更有彈性、更強大。

Our next questions come from the line of Ashley Helgans with Jefferies.

我們的下一個問題來自 Jefferies 的 Ashley Helgans。

This is Blake on for Ashley. I wanted to ask on the professional channel. If you could comment any more on how that trended throughout the quarter and just how those customers how are they buying their inventory in terms of closer to need. Also maybe comment on time between salon visits if you've seen a change there from the end consumer as well. That's my first question.

這是阿什利的布萊克。我想去專業頻道問問。如果你能再評論一下整個季度的趨勢，以及這些客戶如何在更接近需求的情況下購買庫存。如果您也從最終消費者那裡看到了變化，也可以對沙龍訪問之間的時間發表評論。這是我的第一個問題。

Yes, we've seen a consistent trend in the professional channel as what we've said in the previous quarter, which is that we do believe the current macro environment is impacting the professional channel and the stylist community a little bit more than what we've seen in other channels that is increasing the time between visits.

是的，正如我們在上一季度所說的那樣，我們在專業渠道中看到了一個一致的趨勢，那就是我們確實相信當前的宏觀環境對專業渠道和造型師社區的影響比我們認為的要大一點在其他渠道中看到正在增加訪問之間的時間。

We see that in data like what we get from Klein in measuring front of salon sales, which in the fourth quarter of last year was actually down -- the market was down 9%. So we've seen that continue, and we expect that to continue in 2023. That's balanced by the other channels.

我們從 Klein 獲得的衡量沙龍銷售額的數據中看到，去年第四季度實際上下降了——市場下降了 9%。所以我們看到這種情況會繼續，我們預計這種情況會在 2023 年繼續。其他渠道會平衡這種情況。

And I'll just put it in that context, we've always said that this is a category that is strong and resilient in the face of macro challenges. We expect that to continue, but not immune. And our expectation, at least as we aggregate what we see in retail and direct-to-consumer and Pro is more a category growth this year that would be in the mid-single-digit growth. So a slowdown, like I said, resilient but not immune to the macro uncertainty?

我只是把它放在那個背景下，我們一直說這是一個在面對宏觀挑戰時強大而有彈性的類別。我們預計這種情況會繼續下去，但也不能倖免。我們的預期是，至少當我們匯總我們在零售和直接面向消費者和專業領域所看到的情況時，今年更多的是一個類別的增長，將達到中個位數的增長。所以經濟放緩，就像我說的那樣，有彈性但不能免受宏觀不確定性的影響？

That's helpful. And then on the guidance, I think I might have missed it, but I heard you say you expect positive growth year-over-year in Q4, did you mention your expectations for Q3 at all versus Q4? Just trying to think about the magnitude of difference in growth between Q3 and Q4.

這很有幫助。然後關於指導，我想我可能錯過了，但我聽說你說你預計第四季度同比增長，你有沒有提到你對第三季度和第四季度的預期？只是想想想第三季度和第四季度之間增長差異的幅度。

We didn't comment specifically on Q3. We've said that we expect to return to growth in the fourth quarter of this year as we believe the actions, the investments that we're taking, we're going to test, learn and optimize.

我們沒有具體評論第三季度。我們已經說過，我們預計將在今年第四季度恢復增長，因為我們相信我們正在採取的行動和投資，我們將進行測試、學習和優化。

Those impacts are going to build gradually quarter-by-quarter as we get through the year. And as we exit the year and as we have some more favorable laps admittedly as well in the fourth quarter, we expect growth to return in the fourth quarter as we enter 2024.

隨著我們度過這一年，這些影響將逐季度逐漸增加。隨著我們今年結束，而且我們在第四季度也有一些更有利的圈數，我們預計隨著我們進入 2024 年，第四季度將恢復增長。

Our next questions come from the line of Jason English with Goldman Sachs.

我們的下一個問題來自 Jason English with Goldman Sachs。

Let's pick up where you just left off, growth sales returning to growth by the fourth quarter. What gives you confidence in that? And how much of this distribution related -- what do you expect from accounts where you're currently distributed like US or the Protein in the U.S.? And what are the demand indicators you're seeing today that gives you confidence that you found a level that you can grow off of?

讓我們從你剛剛停下的地方開始，增長銷售在第四季度恢復增長。是什麼讓你對此充滿信心？這種分佈有多少相關——你對你目前分佈的賬戶有什麼期望，比如美國或美國的蛋白質？您今天看到的哪些需求指標讓您有信心找到可以增長的水平？

Thanks, Jason, for that question. Let me start, and as usual, Eric has definitely built on it. I think first and foremost is the data that we have seen in our sell-out trends have been stable since we reported last quarter, and we expect that to continue to do so for the rest of the year. And why is that?

謝謝杰森提出這個問題。讓我開始吧，和往常一樣，埃里克肯定是在它的基礎上建造的。我認為最重要的是，自上個季度報告以來，我們在售罄趨勢中看到的數據一直很穩定，我們預計今年餘下時間將繼續保持這種狀態。為什麼是這樣？

Because we've been executing, as we've mentioned, on proven high return on investment, performance-based marketing that has been successful in the past. We have shared that, but we are going even further this year. And given that it's also our reset here. While it's too early on certain of our activation. But so far, what we have seen is our educational marketing support around our core that we just launched is showing really good signs of positive feedback both on the digital (inaudible) perspective as well as sales stability in the -- in our current and even new distribution that we have started late last year.

因為我們一直在執行，正如我們已經提到的那樣，在過去取得成功的基於績效的市場營銷中，已經證明了高投資回報率。我們已經分享了這一點，但今年我們將走得更遠。鑑於這也是我們在這裡的重置。雖然現在對我們的某些激活還為時過早。但到目前為止，我們所看到的是我們剛剛推出的圍繞我們核心的教育營銷支持在數字（聽不清）角度以及我們當前甚至銷售穩定性方面都顯示出非常好的積極反饋跡象我們去年年底開始的新發行版。

With that said, the third-party field people in store continues to help us generate the ability to educate and to really get feedback as to what the consumers are misunderstanding so that we can really double click on our education content and material. Then there are other things that we are now going to expand such as the out-of-home campaign and our home advertising. And we have taken learnings very recently, late last year, early part of this year, where we had a Time Square billboard and they really directed traffic to the near in locations, which really shows that people were paying attention or consumers were paying attention.

話雖如此，店內的第三方現場人員繼續幫助我們培養教育能力，並真正獲得消費者誤解的反饋，這樣我們才能真正雙擊我們的教育內容和材料。然後還有其他我們現在要擴展的事情，例如戶外活動和我們的家庭廣告。我們最近吸取了教訓，去年年底，今年年初，我們有一個時代廣場的廣告牌，他們真的把交通引導到附近的地方，這真的表明人們在關注或消費者在關注。

We do believe that something will continue to be successful, but that is early days, and retailers have come back and told us that they are going to give us feedback probably in Q3 or so because people who get the samples, they take time to try and then go back in store to convert. We are also starting more frequency contact with our pro community where it is not only about selling product knowledge information, but also helping them in their business so that they can actually benefit from us not only as a brand with products but a brand with a purpose.

我們確實相信某些事情會繼續取得成功，但那還為時過早，零售商已經回來告訴我們他們可能會在第三季度左右給我們反饋，因為拿到樣品的人需要時間去嘗試然後回到商店進行轉換。我們也開始更頻繁地與我們的專業社區聯繫，這不僅是關於銷售產品知識信息，而且還幫助他們開展業務，以便他們實際上可以從我們這裡獲益，不僅是一個有產品的品牌，而且是一個有目標的品牌.

Okay. And you mentioned in your prepared remarks, I heard you say your core mission, and I'm going to paraphrase because there was more different words around it, but core mission is to make people feel more confident with healthy air. We've talked in the past about the potential to maybe diversify into skin.

好的。你在準備好的發言中提到，我聽到你說了你的核心使命，我要解釋一下，因為它周圍有更多不同的詞，但核心使命是讓人們對健康的空氣更有信心。我們過去曾討論過將產品多樣化到皮膚的可能性。

Does this focus core mission, just imply just that, like you're really just going to focus on hair and we should ignore those type of adjacencies.

這個重點核心任務是否只是暗示，就像你真的只關注頭髮，我們應該忽略那些類型的鄰接。

Well, the good news is you've seen us launch an adjacency in labor, right, and it has done well and continues to capture the imagination of the consumers, our retail partners, including our professional duty supply locations where they are actually asking more for the products. So we believe that our technology now validates the fact that it can be outside of where hair is. We want to focus on hair in this reset year because it is going deeper, not wider, but technology play is a big one in the marketplace. And when the time is right, where we have an intersection of cutting-edge technology and in a new segment that we can play in, then that is time for us to consider an adjacency of that nature because we have always said, it is not a question of needing to do it. It's a question of wanting to do something that is groundbreaking.

嗯，好消息是你已經看到我們在勞動力中推出鄰接服務，對吧，它做得很好，並繼續吸引消費者、我們的零售合作夥伴的想像力，包括我們的專業職責供應地點，他們實際上要求更多為產品。所以我們相信我們的技術現在證實了它可以在頭髮所在的地方之外的事實。我們希望在這個重置的一年專注於頭髮，因為它變得更深，而不是更廣泛，但技術在市場上扮演著重要角色。當時機成熟時，當我們擁有尖端技術的交叉點和我們可以參與的新細分市場時，就是我們考慮這種性質的鄰接的時候了，因為我們一直說，這不是一個需要這樣做的問題。這是一個想要做一些開創性的事情的問題。

Our next questions come from the line of Korinne Wolfmeyer with Piper Sandler.

我們的下一個問題來自 Korinne Wolfmeyer 和 Piper Sandler。

So first, I'd like to just touch on the guidance. I mean you left it unchanged, and it's still a pretty wide range for the year, and I understand it's a reset year, and we're still trying to figure out where things will settle out, but what would give you more confidence, say, in the coming quarters to start tightening that guidance?

所以首先，我想談談指導。我的意思是你保持不變，今年的範圍仍然很廣，我知道這是重置的一年，我們仍在努力弄清楚事情會在哪裡解決，但是什麼會讓你更有信心，比如說，在未來幾個季度開始收緊該指導？

Korinne, I'll take that one. As you just said, we're only one quarter into the reset year. We're in the early stages of implementing our plan, these actions and these investments. And as we've said, we're pleased with the progress thus far, and we're assuming that we're going to yield the benefits of those actions and investments in the back half of the year. To answer your question, as we traverse through the year, as we test, learn and optimize, as we see the impacts of those take hold, that's what would lead us to a position to tighten our range. We didn't feel like that was appropriate at this point.

Korinne，我要那個。正如您剛才所說，我們只進入了重置年的四分之一。我們正處於實施我們的計劃、這些行動和這些投資的早期階段。正如我們所說，我們對迄今為止取得的進展感到滿意，並且我們假設我們將在今年下半年從這些行動和投資中獲益。為了回答你的問題，當我們走過這一年時，當我們測試、學習和優化時，當我們看到這些影響產生時，這將導致我們縮小我們的範圍。在這一點上，我們認為這不合適。

Got it. And then just touching on some of the newer products, and I know you don't really disclose sales by product, but is there any color you could provide us on how much some of the newer products, like say, 4D have been contributing to sales? And then as we think about as you launch more adjacent products like Lashbond, that kind of different price points than that kind of $30 range that you typically sell at. How should we be thinking about the margin differential of those products? And if those become a bigger part of the mix, how should we be thinking about the margin impacts there?

知道了。然後只是談到一些新產品，我知道你並沒有真正披露產品的銷售額，但是你有什麼顏色可以告訴我們一些新產品有多少，比如 4D 已經貢獻了多少？銷售量？然後，當我們考慮推出更多類似 Lashbond 的相鄰產品時，這種價格點與您通常銷售的 30 美元範圍不同。我們應該如何考慮這些產品的利潤差異？如果這些成為組合中更大的一部分，我們應該如何考慮那裡的利潤率影響？

Korinne, I'll take that one as well. So we just launched 4D, we've just launched Lash. I would just characterize these as similar type launches as what we've had in the past. Every subsegment of Lash in an adjacent category is those market sizes are different, and we'd say that the last serum category based on the numbers that we have is a smaller category, of course, relative to hair, but a meaningful opportunity and completely incremental to us. So similar size type launches.

Korinne，我也要那個。所以我們剛剛推出了 4D，我們剛剛推出了 Lash。我只想將這些描述為與我們過去擁有的類似類型的發布。相鄰類別中 Lash 的每個子細分市場規模都不同，我們會說基於我們擁有的數字的最後一個血清類別是一個較小的類別，當然，相對於頭髮，但這是一個有意義的機會，並且完全增量給我們。所以類似尺寸的類型推出。

And from a margin perspective, it's not just the premium pricing, but it's the costs that go into that. Lash is a good example of something that is -- has the potential to help gross margins from an accretive gross margin impact. That one is a bit higher than our normal category margins, and that's going to continue to be an opportunity for us in the future as we evaluate with every launch that we put out into the market, what's the appropriate price.

從利潤率的角度來看，這不僅僅是溢價定價，而是其中的成本。 Lash 是一個很好的例子 - 有可能通過增加毛利率影響來幫助毛利率。這比我們正常的類別利潤率高一點，這將在未來繼續成為我們的機會，因為我們會評估我們投放市場的每一次發布，什麼是合適的價格。

Our next questions come from the line of Jungwon Kim with TD Cowen.

我們的下一個問題來自 Jungwon Kim 和 TD Cowen。

Just curious if you can elaborate a little bit more on how the sales progressed in specialty retail on a sort of a like-for-like basis? Are you seeing any sort of progress there? And if you can comment on sort of the marketing spend over the medium term, do you continue to expense the elevated levels that you are investing now? Or how should we think about that?

只是好奇您是否可以更詳細地說明專業零售的銷售如何在類似的基礎上取得進展？你在那裡看到任何進展嗎？如果你能對中期的營銷支出發表評論，你是否會繼續花費你現在投資的高水平？或者我們應該如何考慮？

Jungwon, I'll take that on specialty retail trends and then marketing as well. So you've seen our specialty retail results in the first quarter.

Jungwon，我會把它放在專業零售趨勢上，然後是市場營銷。所以你已經看到了我們第一季度的專業零售業績。

Those were particularly depressed again by the lapping of the very successful launch that we had in Ulta in the first quarter of last year as well as some of this customer inventory rebalancing that we've said we also experienced in the first quarter.

由於去年第一季度我們在 Ulta 的非常成功的發布以及我們說過我們在第一季度也經歷過的一些客戶庫存重新平衡，這些再次特別令人沮喪。

Specialty retail sellout trends have been stable since our last call. We'll recognize. You see the results in the first quarter that those have been -- that performance has been behind the category in the first quarter, again, as we lap that very, very successful launch in Ulta.

自我們上次通話以來，專業零售銷售趨勢一直穩定。我們會認出來的。你會看到第一季度的結果——當我們在 Ulta 推出非常非常成功的產品時，第一季度的表現再次落後於同類產品。

And so stable since our last call and very much we assume that, that trend will improve in the back half on the back of our actions and investments. And you also asked about the marketing investments we're making as we said, Q2 has some additional investment against this upper funnel campaign that we're very excited about to build the brand, to build equity and to build awareness around the brand. We've consistently said we're going to test, learn and optimize and that's going to be part of it. We're excited about that campaign.

自我們上次通話以來如此穩定，我們非常認為，在我們的行動和投資的支持下，這種趨勢將在後半段有所改善。正如我們所說，您還詢問了我們正在進行的營銷投資，第二季度針對這個上層漏斗活動進行了一些額外的投資，我們對建立品牌、建立資產和建立品牌知名度感到非常興奮。我們一直說我們將進行測試、學習和優化，這將成為其中的一部分。我們對該活動感到興奮。

Our final questions come from the line of Jonathan Keypour with Bank of America.

我們的最後一個問題來自美國銀行的 Jonathan Keypour。

I'm just wondering -- in terms of how Olaplex goes to market, it seemed like maybe 2 years ago or a year ago to rely very heavily on the salon professional channel. And now that, that has slowed understandably. I'm just wondering if there is a kind of high-level shift in how OpEx is attempting to reach new consumers.

我只是想知道——就 Olaplex 如何進入市場而言，它似乎在 2 年前或一年前非常依賴沙龍專業渠道。而現在，可以理解地放慢了速度。我只是想知道 OpEx 試圖接觸新消費者的方式是否存在某種高層轉變。

Jonathan, thank you for the question, and I'll take that. So one of the things that we want to be really clear about is our stylist community is the bedrock of Olaplex. Continuous independent study shows that the #1 source of truth for consumers is recommendations by their head sites. We continue to enjoy their support they standing by us, and we continue to really develop relationships, business benefits for them. We are a brand with purpose for them, as I mentioned earlier. So we are going to be aware our consumers are.

喬納森，謝謝你提出這個問題，我會接受的。所以我們想要真正清楚的一件事是我們的造型師社區是 Olaplex 的基石。持續的獨立研究表明，消費者的第一大真實來源是其總部網站的推薦。我們繼續享受他們支持我們的支持，我們繼續真正發展關係，為他們帶來商業利益。正如我之前提到的，我們是一個為他們服務的品牌。因此，我們將意識到我們的消費者。

Our consumer are taking recommendations from their stylists. They are listening to their own family and friends. So verified product reviews are very important. That's where we are going to double-click on, making sure that our purchase verified product reviews are strong. And that is through sampling. We can actually give people samples, they can try the product and they can go on and buy the product and then leave a product review and the other one is family and friends.

我們的消費者正在接受造型師的推薦。他們正在傾聽自己的家人和朋友的意見。因此，經過驗證的產品評論非常重要。這就是我們要雙擊的地方，確保我們的購買驗證產品評論很強。那就是通過抽樣。我們實際上可以給人們樣品，他們可以試用產品，他們可以繼續購買產品，然後留下產品評論，另一個是家人和朋友。

And this is why the social media aspect is so important because people go to social media platforms to really consume a lot of their product, learning and understanding. And so that's why they will double click on addressing narrative on educating about our products, helping people understand what are the benefits and the usage and tips. All this will add to the value of our brand and the receptiveness and the responsiveness to the brand. So in short, we are not making a change, but instead, we are investing more behind the brand to a full funnel marketing approach.

這就是為什麼社交媒體方面如此重要的原因，因為人們去社交媒體平台是為了真正消費他們的大量產品、學習和理解。這就是為什麼他們會雙擊解決關於教育我們產品的敘述，幫助人們了解有什麼好處、用法和技巧。所有這些都將增加我們品牌的價值以及對品牌的接受度和響應度。所以簡而言之，我們沒有做出改變，而是在品牌背後投入更多資金，採用全漏斗營銷方式。

Great. And then switching topics a bit. In terms of the inventory rebalancing, so you guys called out $21 million this quarter. I mean, I'm assuming that it gets that difference between sell-through and sell-in narrows over the course of the year. I'm just wondering if you could give us any kind of directional ideas about maybe what the full year rebalancing impact will be maybe how to sequence that through our models? And then if you can, I guess, where that impact is most pronounced by channel? And that should be good.

偉大的。然後稍微切換一下話題。在庫存再平衡方面，你們本季度撥款 2100 萬美元。我的意思是，我假設它會在一年中縮小銷售和銷售之間的差異。我只是想知道你是否可以給我們任何方向性的想法，比如全年的再平衡影響可能是什麼，或者如何通過我們的模型對其進行排序？然後，如果可以的話，我猜，渠道影響最明顯的地方是什麼？那應該很好。

Jonathan, absolutely. I'll take that. So let me just start by saying we have good visibility into inventory levels at most of our major U.S. accounts by item, and we're tracking sell-out versus sell-in for the majority of our global business.

喬納森，絕對。我會接受的。因此，讓我首先說我們對大多數主要美國客戶的庫存水平有很好的了解，並且我們正在跟踪我們大部分全球業務的銷售與銷售情況。

You mentioned the $21 million year-over-year impact that we believe we experienced in the first quarter.

你提到了我們認為我們在第一季度經歷了 2100 萬美元的同比影響。

We also -- on our last call, I talked about the impact that we expect to lap in the fourth quarter of this year, which should be a positive. And so look, what is customer inventory rebalancing, all it is, as it relates to customers adjusting orders to align with sellout trends with macro conditions and their own decisions on month levels.

我們還——在上次電話會議上，我談到了我們預計將在今年第四季度產生的影響，這應該是積極的。所以看看，什麼是客戶庫存再平衡，它與客戶調整訂單以符合宏觀條件的銷售趨勢以及他們自己在月度水平上的決定有關。

And so we're tracking and monitoring that closely. It's dynamic. It happens every quarter to some extent on various items at various accounts, and we're factoring all of that into our current outlook into the guidance that we've provided. And as we've said, we've seen the sellout trend stabilize since our last call and assuming improvement in the back half.

因此，我們正在密切跟踪和監控。它是動態的。它每個季度都會在某種程度上發生在不同賬戶的不同項目上，我們正在將所有這些因素納入我們目前對我們提供的指導的展望中。正如我們所說，自我們上次通話以來，我們已經看到售罄趨勢趨於穩定，並假設後半部分有所改善。

Thank you. That is all the time we have for questions today. I would now like to hand the call back over to JuE Wong for any closing comments.

謝謝。這就是我們今天提問的全部時間。我現在想將電話轉回給 JuE Wong 以徵求任何結束意見。

Thank you. Thank you, everyone, and we look forward to seeing everyone again at our next earnings Thanks. Bye.

謝謝。謝謝大家，我們期待在下一次收益中再次見到大家謝謝。再見。

Thank you. That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路。享受你剩下的一天。