Olaplex Holdings Inc (OLPX) 2023 Q2 法說會逐字稿

Greetings. Welcome to Olaplex Holdings, Inc. Second Quarter 2023 Earnings Results Conference Call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to Patrick Flaherty, Vice President of Investor Relations. Thank you. You may begin.

問候。歡迎參加 Olaplex Holdings, Inc. 2023 年第二季度盈利結果電話會議。 （操作員說明）請注意，本次會議正在錄製中。我現在將會議交給投資者關係副總裁 Patrick Flaherty。謝謝。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.

謝謝你，早上好。今天與我一起出席的是總裁兼首席執行官 JuE Wong；埃里克·蒂齊亞尼 (Eric Tiziani)，首席財務官。

Before we start, I would 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.

在開始之前，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到的其他事項。

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.

每項前瞻性陳述都存在風險和不確定性，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，請參見公司收益發布中以及公司向美國證券交易委員會提交的文件中有關前瞻性陳述的“警告說明”標題下，這些文件可在www.sec.gov 和投資者關係部分查閱。該公司的網站為 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.

本次電話會議中的前瞻性陳述僅代表本次電話會議原始日期的情況，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 helpful 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 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.

此外，在這次電話會議中，管理層還將討論某些非公認會計準則財務指標，管理層認為這些指標有助於評估公司的業績。非公認會計原則財務指標的列報不應被孤立地考慮或作為根據公認會計原則編制的結果的替代。您將在公司收益報告中找到有關這些非 GAAP 財務指標的信息，以及這些非 GAAP 財務指標與最直接可比的 GAAP 指標的調節表。

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 industry publications or other publicly available information as well as our internal sources. The company has not independently verified the accuracy or completeness of the data contained in these industry publications and any other publicly available information.

該電話會議的現場直播也可在該公司網站 ir.olaplex.com 的投資者關係部分觀看。此外，在這次電話會議中，管理層將參考基於行業出版物或其他公開信息以及我們的內部來源的某些數據點、估計和預測。該公司尚未獨立驗證這些行業出版物和任何其他公開信息中包含的數據的準確性或完整性。

Furthermore, this information involve assumptions and limitations, and you are cautioned not to give undue weight to these estimates.

此外，此信息涉及假設和限制，請注意不要過度重視這些估計。

With that, I will turn the call over to JuE Wong.

這樣，我會將電話轉給 JuE Wong。

Thank you, Patrick, and good morning, everyone. As outlined in our press release issued this morning, we had a challenging second quarter. Net sales of $109 million were below our expectations of modest sequential improvement from the first quarter and adjusted EBITDA was $36.7 million or a margin of 33.6%. With weaker-than-expected results in the second quarter coupled with our updated assumptions for the remainder of the year, we are reducing our guidance for fiscal 2023, expecting net sales in the range of $445 million to $465 million.

謝謝你，帕特里克，大家早上好。正如我們今天早上發布的新聞稿中所述，我們的第二季度充滿挑戰。淨銷售額為 1.09 億美元，低於我們對第一季度略有改善的預期，調整後 EBITDA 為 3,670 萬美元，利潤率為 33.6%。由於第二季度的業績低於預期，加上我們對今年剩餘時間的最新假設，我們正在降低 2023 財年的指導，預計淨銷售額在 4.45 億美元至 4.65 億美元之間。

Overall, our business continues to be negatively impacted by competition, a more promotional environment, and misinformation related to our brand. Despite these headwinds, we are continuing to invest by increasing efforts on upper funnel marketing designed to build brand equity and expanding our focus and support for the important professional community.

總體而言，我們的業務繼續受到競爭、促銷環境以及與我們品牌相關的錯誤信息的負面影響。儘管存在這些不利因素，我們仍在繼續投資，加大力度進行漏斗上層營銷，旨在建立品牌資產，並擴大我們對重要專業社區的關注和支持。

Let me take a step back and walk through the perspective of what drove the revision to our full year outlook. Earlier this year, we announced that we are approaching 2023 as a reset year to build a stronger and more resilient foundation to position Olaplex for long-term growth. The prestige haircare category which Olaplex revolutionized in 2014 has evolved into a healthy and vibrant category, but with more competition.

讓我退後一步，回顧一下推動我們修改全年展望的因素。今年早些時候，我們宣布將 2023 年作為重置年，為 Olaplex 的長期增長奠定更強大、更有彈性的基礎。 Olaplex 於 2014 年徹底革新的高端護髮類別已發展成為一個健康且充滿活力的類別，但競爭也更加激烈。

In order to support our future growth, we must continue to amplify our investment and expand our marketing and educational capabilities. And to that end, we initiated an integrated full funnel marketing approach this year to build brand awareness, increase consideration and drive conversion. And beginning in the second quarter, we invested heavily in upper funnel and other creative marketing activity aimed at building long-term equity around the sign and emotional connections associated with the Olaplex brand.

為了支持我們未來的增長，我們必須繼續加大投資力度，擴大營銷和教育能力。為此，我們今年啟動了一體化的全漏斗營銷方法，以建立品牌知名度、提高考慮度並推動轉化。從第二季度開始，我們大力投資於上層漏斗和其他創意營銷活動，旨在圍繞與 Olaplex 品牌相關的標誌和情感聯繫建立長期股權。

When we introduced annual guidance earlier this year, our visibility was limited as there was uncertainty regarding how shifting market dynamics will impact the business. We anticipated that trends will stabilize in the second quarter and sales demand will rebound in the second half of the year as our increased investments in sales, marketing and education began to yield returns. We also expect it to benefit from new product introductions and new distribution gains.

當我們今年早些時候推出年度指引時，我們的能見度有限，因為市場動態的變化將如何影響業務存在不確定性。我們預計，隨著我們在銷售、營銷和教育方面的增加投資開始產生回報，第二季度趨勢將趨於穩定，下半年銷售需求將反彈。我們還預計它將受益於新產品的推出和新的分銷收益。

However, we have now seen a weaker sales trend persists since our first quarter earnings call in May through June. While our loyal customers remain highly engaged with Olaplex, we believe a continuation of negative factors have impacted the business. We recognize that these factors are having a particularly negative impact on the performance of our professional channel and views of the brand with some members of the stylist community.

然而，自 5 月至 6 月的第一季度財報電話會議以來，我們現在看到銷售疲軟的趨勢持續存在。雖然我們的忠實客戶仍然與 Olaplex 保持高度互動，但我們相信持續的負面因素已經影響了業務。我們認識到，這些因素對我們專業渠道的表現以及造型師社區一些成員對品牌的看法產生了特別負面的影響。

As a result, we are revising our forecast for the balance of the year using this recent trend as the run rate for the business. We recognize that it will take a sustained and balanced approach to investing in marketing, education, innovation and brand-building activations to grow the business.

因此，我們正在使用最近的趨勢作為業務的運行率來修改對今年剩餘時間的預測。我們認識到，它將採取持續和平衡的方法來投資營銷、教育、創新和品牌建設活動，以發展業務。

Several key assumptions have changed in this new outlook. First, demand slowed as trends weakened in our Professional and Specialty Retail channels due to slower sellout and some customers rightsizing their inventory position.

在這個新的展望中，幾個關鍵假設發生了變化。首先，由於銷售放緩和一些客戶調整庫存狀況，我們的專業和專業零售渠道的趨勢減弱，需求放緩。

Second, while we are beginning to see some positive early indicators from our upper funnel market campaign, we are not yet experiencing the list that we were anticipating across the business, and we expect that this activity will begin to deliver stabilization on an absolute basis rather than growth during the second half of the year.

其次，雖然我們開始看到漏斗上端市場活動的一些積極的早期指標，但我們尚未經歷我們在整個業務中預期的清單，我們預計這項活動將開始在絕對基礎上帶來穩定，而不是增速高於下半年。

And third, given our updated view on our trend line, we believe it is prudent to lower our expectations for consumer demand associated with new product introductions and new distribution gains. Eric will provide more details on our outlook later on in the call.

第三，鑑於我們對趨勢線的最新看法，我們認為謹慎的做法是降低對新產品推出和新分銷收益相關的消費者需求的預期。埃里克將在稍後的電話會議中提供有關我們前景的更多詳細信息。

We believe we made progress towards achieving stabilization. Based on data from a third party, we have seen a lift in awareness and positive opinion of Olaplex following the start of our upper funnel marketing campaign in June. Similarly, olaplex.com has experienced increased traffic and improved conversion after the campaign launch. And because that channel tends to act as a leading indicator, given its close proximity to the end consumer, we believe the messaging, content and creative assets of the campaign are resonating.

我們相信我們在實現穩定方面取得了進展。根據第三方的數據，自 6 月份開始漏斗上層營銷活動以來，我們發現 Olaplex 的認知度和積極評價有所提升。同樣，olaplex.com 在活動啟動後流量也增加了，轉化率也提高了。由於該渠道往往充當領先指標，且與最終消費者非常接近，因此我們相信該活動的信息、內容和創意資產會引起共鳴。

And as we balance selling activities with demand, we believe the months on hand inventory positions at our major accounts on our core items are in a much better place relative to their targets. We have worked to normalize inventory levels with this partners in response to slower than originally planned sales and decisions from this partners to lower overall month-on-hand levels than previously carried.

當我們平衡銷售活動與需求時，我們相信我們主要客戶的核心項目的月庫存狀況相對於他們的目標要好得多。我們與這些合作夥伴一起努力使庫存水平正常化，以應對銷售速度低於原計劃的情況，以及該合作夥伴決定降低總體月庫存水平低於之前的情況。

To put this in context, in the first half of 2023, net sales, all selling declined 44% overall, while sell out at key accounts are down approximately 26%. Some of this difference can be attributed to the lapping of previously communicated prior year one-offs, namely our 1-liter pipeline launch, Ulta pipeline in Q1 of 2022, and the impact of our July 1, 2022 price increase.

綜合來看，2023 年上半年，淨銷售額（所有銷售）總體下降了 44%，而大客戶的銷售量下降了約 26%。部分差異可歸因於之前通報的上一年一次性項目的重疊，即我們的 1 升管道啟動、2022 年第一季度的 Ulta 管道以及我們 2022 年 7 月 1 日提價的影響。

The remainder of the difference between sell-in and sell-out can be attributed primarily to discontinued customer destocking actions in response to our lower demand. Our team is focused on executing and improving our sales trend through brand building and education activations that we believe are the strongest levers to engage loyal users and bring new and lapsed customers to Olaplex.

售入和售出之間的其餘差異主要歸因於客戶為應對需求下降而停止的去庫存行動。我們的團隊專注於通過品牌建設和教育活動來執行和改善我們的銷售趨勢，我們相信這是吸引忠實用戶並將新客戶和流失客戶吸引到 Olaplex 的最強槓桿。

We are increasing the amount of investment for this year and are adjusting the mix of that investment as we test, learn and optimize our initiatives. We are raising our expectation for marketing, inclusive of sampling and certain sales and marketing payroll to increase to a range of $80 million to $85 million in 2023 compared to our previous expectation of $70 million and up from $40 million in 2022. With this change, we are increasing aspects of our new brand campaign, re-purposing some of the upper funnel out-of-home activations towards media and connected TV and focusing more efforts on improving our standing with the Pro community.

我們將增加今年的投資額，並在測試、學習和優化我們的計劃時調整投資組合。我們正在提高對營銷的預期，包括抽樣以及某些銷售和營銷工資，到2023 年將增加到8000 萬美元至8500 萬美元，而我們之前的預期為7000 萬美元，而2022 年為4000 萬美元。通過這一變化，我們正在增加新品牌活動的各個方面，將一些上層戶外活動重新定位為媒體和聯網電視，並更加努力地提高我們在專業社區中的地位。

As we adjust our plans for the year, we continue to make progress against our 4 key priorities. These are accelerating investments in sales and marketing, increasing and evolving our educational assets, reasserting our position with our Pro and Specialty Retail partners and improving our approach to PR.

在調整今年的計劃時，我們繼續在 4 個關鍵優先事項上取得進展。這些措施正在加速對銷售和營銷的投資，增加和發展我們的教育資產，重申我們在專業和專業零售合作夥伴中的地位，並改進我們的公關方法。

Let me now walk you through the progress we made on this initiative during the second quarter. Beginning with sales and marketing. Year-to-date, we invested approximately $40 million of the planned $80 million to $85 million investments for the year. In May, we kicked off an integrated full funnel creative campaign titled Strength Starts Inside, featuring paid media, digital, social, connected TV, audio and out-of-home activations.

現在讓我向您介紹我們第二季度在這一舉措上取得的進展。從銷售和營銷開始。今年迄今為止，我們投資了約 4000 萬美元，其中計劃投資 8000 萬至 8500 萬美元。五月，我們啟動了名為“Strength Starts Inside”的綜合全渠道創意活動，其中包括付費媒體、數字、社交、聯網電視、音頻和戶外活動。

With this campaign, we intend to amplify our scientific authority by highlighting how Olaplex build strength from the inside with our patented bisamino technology as well as strengthening emotional connections with our community of Pro's and customers who aspire to bring out their own inner strength. And in June, we generated excitement of our 9-year anniversary as a company by celebrating National Olaplex Day. To celebrate this milestone, we hosted events with our professional ambassadors and activated fully branded guerilla street sampling teams near local Sephora and also Ulta Beauty doors in New York, Los Angeles and Chicago.

通過這次活動，我們打算通過強調 Olaplex 如何利用我們的專利雙氨基技術從內部增強力量，以及加強與我們的專業人士社區和渴望發揮自己內在力量的客戶的情感聯繫，來擴大我們的科學權威。 6 月，我們慶祝了國家 Olaplex 日，為公司成立 9 週年感到興奮。為了慶祝這一里程碑，我們與專業大使一起舉辦了活動，並在當地絲芙蘭以及紐約、洛杉磯和芝加哥的 Ulta Beauty 門店附近激活了全品牌游擊街頭採樣團隊。

Turning to education. We continuously look for new and better ways to inform stylist and consumers about the superior performance of our iconic products. In that vein, we are implementing a more active and engaged approach to field education and are establishing our own internal retail field sales team.

轉向教育。我們不斷尋找新的、更好的方法來讓造型師和消費者了解我們標誌性產品的卓越性能。本著這一精神，我們正在實施更加積極和投入的現場教育方法，並正在建立我們自己的內部零售現場銷售團隊。

You may recall that during the fourth quarter of last year, we deployed a pilot of a third-party field sales team trained by Olaplex and following positive results, expanded the program to 400 Sephora and Ulta Beauty doors during the first quarter. This progress has demonstrated the impact we can have in driving in-person education with consumer and beauty advisers.

您可能還記得，去年第四季度，我們部署了由 Olaplex 培訓的第三方現場銷售團隊試點，取得積極成果後，第一季度將該計劃擴展到 400 家絲芙蘭和 Ulta Beauty 門店。這一進展證明了我們在推動消費者和美容顧問面對面教育方面可以產生的影響。

An internal retail field team is not only more cost efficient than engaging with a third party, but we believe that we will have even better control of training on the Olaplex brand.

內部零售現場團隊不僅比與第三方合作更具成本效益，而且我們相信我們將更好地控制 Olaplex 品牌的培訓。

Our third priority is to reassert our position with our Professional and Specialty Retail partners. The Professional community remains as the foundation of our brand and its core to maintaining our credibility in the category. We know it is critical to address and solve the issues we are facing in that channel by increasing our visibility and investing more to deepen engagement with stylists.

我們的第三個優先事項是重申我們與專業和專業零售合作夥伴的立場。專業社區仍然是我們品牌的基礎，也是維持我們在該類別中的信譽的核心。我們知道，通過提高我們的知名度並加大投資來加深與造型師的接觸，解決我們在該渠道中面臨的問題至關重要。

To that end, the team is implementing new and incremental full 360 activations to show our support for the Pro audience driven primarily by participating in high visibility distributor-led events, stylist appreciation days and in-store activities. In addition, we continue to increase in-person and virtual sales contracts and training with our new field sales managers and expanded education team, both in North America and in internationally.

為此，該團隊正在實施新的增量式全方位 360 度激活，以表明我們對專業受眾的支持，主要通過參與高知名度經銷商主導的活動、造型師答謝日和店內活動來推動。此外，我們繼續在北美和國際上增加現場和虛擬銷售合同以及與新的現場銷售經理和擴大的教育團隊的培訓。

We piloted and expanded data-driven programs to help our distributor partners target and secure new Olaplex salons and are advancing our key opinion leader program by adding new salons and cultivating relationships with existing partner salons.

我們試點並擴展了數據驅動計劃，以幫助我們的經銷商合作夥伴瞄準並確保新的 Olaplex 沙龍，並通過增加新沙龍和培養與現有合作夥伴沙龍的關係來推進我們的關鍵意見領袖計劃。

For Specialty Retail, we are continuing to partner with our key accounts to expand CRM campaign and education content. We also introduced new visual merchandising, reflective of our new brand campaign and made progress on international expansion.

對於專業零售，我們將繼續與我們的主要客戶合作，以​​擴展 CRM 活動和教育內容。我們還推出了新的視覺營銷，反映了我們的新品牌活動，並在國際擴張方面取得了進展。

Our fourth priority this year is to build out and enhance our PR capabilities. With a focus on strengthening our global reputation, scaling influencer, marketing and delivering growth in earned media value, our PR assets are aimed at telling the story of our brand and educating consumers about our technology. We are broadly distributing content in partnership with our brand ambassadors, focus on Olaplex and hair health, via digital and social channels.

我們今年的第四個優先事項是建立和增強我們的公關能力。我們的公關資產專注於加強我們的全球聲譽、擴大影響力、營銷和實現贏得媒體價值的增長，旨在講述我們的品牌故事並教育消費者了解我們的技術。我們與我們的品牌大使合作，通過數字和社交渠道廣泛傳播內容，重點關注 Olaplex 和頭髮健康。

We intend to continue to develop the Olaplex Scientific Advisory Board program, which consists of a group of medical and scientific experts who will help guide us on ways to develop educational content that underscores the safety and scientific capability of our products.

我們打算繼續開發 Olaplex 科學顧問委員會計劃，該計劃由一組醫學和科學專家組成，他們將幫助指導我們開發強調我們產品的安全性和科學能力的教育內容。

We also continue to actively defend our brand against allegations that claim Olaplex product caused hair loss. In July, the court granted Olaplex's motion to sever and dismiss the claims. As a result, all 101 plaintiffs are currently dismissed without prejudice.

我們還繼續積極捍衛我們的品牌，反對聲稱 Olaplex 產品導致脫髮的指控。 7 月，法院批准了 Olaplex 的動議，要求中斷並駁回索賠。因此，所有 101 名原告目前均被無偏見地駁回。

Turning to our progress on investing in our people and building out our team. I am pleased that J.P. Bilbrey has joined our Board in the newly created role of Executive Chair. J.P. joined us about a month ago, bringing extensive experience with growing and evolving global consumer brands after having served as the President and Chief Executive Officer of The Hershey Company and currently serving on the Board of Directors of Tapestry, Elanco Animal Health and Colgate-Palmolive. It is a testament to the opportunities ahead of Olaplex that we could attract a leader of its callable and credentials. J.P. will be valuable in addition to the Olaplex team and we are thrilled to welcome him to the board. I look forward to partnering with him and receiving his guidance on ways to implement best practices and processes as the company scales.

談談我們在員工投資和團隊建設方面取得的進展。我很高興 J.P. Bilbrey 加入我們的董事會並擔任新設立的執行主席一職。 J.P. 大約一個月前加入我們，他曾擔任好時公司總裁兼首席執行官，目前在 Tapestry、Elanco Animal Health 和 Colgate-Palmolive 董事會任職，為全球消費品牌的成長和發展帶來了豐富的經驗。 。我們可以吸引具有可召喚性和資歷的領導者，這證明了 Olaplex 面臨的機遇。除了 Olaplex 團隊之外，J.P. 也很有價值，我們很高興歡迎他加入董事會。我期待與他合作，並接受他關於如何隨著公司規模的擴大實施最佳實踐和流程的指導。

In summary, while it is a challenging period for Olaplex, we continue to be confident in the long-term opportunities for this business. The prestige haircare category is in its early stages of growth, and we are an industry leader, offering fully differentiated sign with our patented bisamino technology. We believe we can reach new customers and reclaim users as we invest in our marketing model and develop within the international markets and we believe we have a compelling multiyear innovation pipeline that enables us to expand our product offering.

總之，雖然對 Olaplex 來說這是一個充滿挑戰的時期，但我們仍然對該業務的長期機遇充滿信心。高端護髮品類正處於發展的早期階段，我們是行業領導者，利用我們的專利雙氨基技術提供完全差異化的標誌。我們相信，當我們投資營銷模式並在國際市場上發展時，我們可以接觸新客戶並重新奪回用戶，並且我們相信我們擁有引人注目的多年創新管道，使我們能夠擴大我們的產品範圍。

With that, I will now pass it over to Eric to cover our second quarter results in more detail and provide additional information on our revised outlook for 2023. Eric?

現在，我將把它交給 Eric，更詳細地介紹我們第二季度的業績，並提供有關我們修訂後的 2023 年展望的更多信息。Eric？

Thank you, JuE, and good morning, everyone. Net sales in the second quarter declined 48.2% to $109.2 million. This was below our expectation of modest sequential improvement in absolute dollars from $113.8 million in the first quarter as our Professional and Specialty Retail channels experienced slower demand and some customers further rightsize their inventory positions in response to current trends.

謝謝你，JuE，大家早上好。第二季度淨銷售額下降 48.2% 至 1.092 億美元。這低於我們對絕對美元較第一季度 1.138 億美元略有連續改善的預期，因為我們的專業和專業零售渠道需求放緩，並且一些客戶進一步調整其庫存頭寸以應對當前趨勢。

We also lapped 2 challenging comparators from Q2 2022. First, we lapped an approximately $22 million net sales impact in the second quarter of 2022 from the introduction of 1-liter size offerings in the North America Professional channel. Second, in the second quarter of last year, we experienced some pull forward in demand of approximately $10 million as some Professional customers chose to buy ahead of our announced price increase, which took effect on July 1 last year.

我們還從2022 年第二季度開始進行了2 個具有挑戰性的比較。首先，我們在北美專業渠道推出1 升規格的產品，在2022 年第二季度對淨銷售額產生了約2200 萬美元的影響。其次，去年第二季度，我們經歷了約 1000 萬美元的需求拉動，因為一些專業客戶選擇在我們宣布的漲價（去年 7 月 1 日生效）之前購買。

By channel, the Professional channel sales declined 61.2% to $40.9 million versus a 32.7% increase last year. Our Direct-to-Consumer channel sales were down 6.4% to $38.5 million compared to growth of 19.3% a year ago. And Specialty Retail sales decreased 53.7% to $29.8 million following an increase of 68.5% in the prior year period.

按渠道劃分，專業渠道銷售額下降 61.2%，至 4,090 萬美元，而去年則增長 32.7%。我們的直接面向消費者渠道銷售額下降 6.4%，至 3850 萬美元，而去年同期則增長 19.3%。專業零售銷售額下降 53.7%，至 2,980 萬美元，而上年同期增長 68.5%。

Moving down the P&L. Adjusted gross profit margin was 72.7%, down 250 basis points from 75.2% in the second quarter of 2022. Approximately 320 basis points is related to higher inventory obsolescence reserve. 230 basis points related to promotional allowance and 110 basis points from inflation on product costs, with the remainder from deleverage and inflation in our warehousing and distribution costs. These more than offset the benefit of favorable channel mix as the overall mix shift to Direct-to-Consumer drove plus 350 basis points as well as the price increase we took from July 1, 2022, which contributed 100 basis points of favorability.

損益表向下移動。調整後毛利率為72.7%，較2022年第二季度的75.2%下降250個基點。約320個基點與較高的庫存報廢儲備有關。 230 個基點與促銷補貼相關，110 個基點與產品成本通脹相關，其餘來自去槓桿化和倉儲和分銷成本通脹。這些遠遠抵消了有利渠道組合的好處，因為整體組合向直接面向消費者的轉變推動了350 個基點，以及我們自2022 年7 月1 日起的價格上漲，這貢獻了100 個基點的有利度。

Adjusted SG&A grew 73.4% to $42.2 million from $24.4 million in Q2 2022. The $17.8 million increase in adjusted SG&A from prior year is primarily the result of a $14.1 million increase in sales and marketing expense, including the upper funnel marketing campaign that launched during the second quarter as well as an increase in payroll attributable to workforce expansion and other related expenses.

調整後的SG&A 增長73.4%，從2022 年第二季度的2440 萬美元增至4220 萬美元。調整後的SG&A 較上年增加1780 萬美元，主要是由於銷售和營銷費用增加了1410 萬美元，包括在2022 年第二季度推出的漏斗上部營銷活動。第二季度以及由於勞動力擴張和其他相關費用導致的工資增加。

Adjusted SG&A excludes $3.5 million related to a onetime settlement with a former distributor in the United Arab Emirates, which allowed us to establish a partnership with another distributor in the country. For the first half of 2023, we have spent $40 million in sales and marketing against our updated $80 million to $85 million full year investment.

調整後的 SG&A 不包括與阿拉伯聯合酋長國前經銷商的一次性和解相關的 350 萬美元，這使我們能夠與該國的另一家經銷商建立合作夥伴關係。 2023 年上半年，我們在銷售和營銷方面投入了 4000 萬美元，而更新後的全年投資為 8000 萬至 8500 萬美元。

Adjusted EBITDA declined 72.4% to $36.7 million versus $133.1 million in the second quarter of 2022. Adjusted EBITDA margin was 33.6% compared to 63.1% a year ago. Adjusted net income decreased 78.5% year-over-year to $21.2 million or $0.03 per diluted share from $98.8 million or $0.14 per diluted share in the 2022 2nd quarter.

調整後 EBITDA 下降 72.4%，至 3670 萬美元，而 2022 年第二季度為 1.331 億美元。調整後 EBITDA 利潤率為 33.6%，而去年同期為 63.1%。調整後淨利潤同比下降 78.5%，從 2022 年第二季度的 9880 萬美元或稀釋每股 0.14 美元降至 2120 萬美元或稀釋每股 0.03 美元。

Turning to our balance sheet. Inventory at the end of the first quarter was $128.5 million, down from $132 million at the end of the first quarter. We continue to make progress on efforts to lower our inventory levels as the sequential reduction was driven by lower inventory levels of core SKUs to match a lower sales forecast, which more than offset building inventory of new SKUs as we prepare for product launches this year.

轉向我們的資產負債表。第一季度末的庫存為 1.285 億美元，低於第一季度末的 1.32 億美元。我們在降低庫存水平方面繼續取得進展，因為核心SKU 的庫存水平較低，以匹配較低的銷售預測，從而推動了連續減少，這足以抵消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 6 months of 2023, we generated $71.1 million in cash from operations. As we shared in past calls, we anticipate another year of healthy cash generation as we have a highly profitable business model and improve our working capital position, primarily through lower inventory. We ended the quarter with $378.4 million in cash and equivalents, which is generating interest income at around 5%. Long-term debt, net of current portion in deferred fees, was $651.7 million.

轉向現金流。 2023 年前 6 個月，我們通過運營產生了 7110 萬美元現金。正如我們在過去的電話會議中分享的那樣，我們預計又將迎來健康的現金生成年，因為我們擁有高利潤的商業模式，並主要通過降低庫存來改善我們的營運資本狀況。本季度結束時，我們擁有 3.784 億美元的現金及等價物，產生的利息收入約為 5%。扣除遞延費用中當前部分的長期債務為 6.517 億美元。

Now turning to our financial outlook. As JuE mentioned earlier in the call, we are revising our guidance for 2023. Let me walk you through our revised guidance and assumptions for the remainder of the year, starting with the top line. For fiscal year 2023, we expect net sales in the range of $445 million to $465 million, down from the previous range of $563 million to $634 million. At the midpoint of both ranges, this represents a reduction of approximately $144 million, which can be broken down into 3 primary buckets.

現在轉向我們的財務前景。正如 JuE 之前在電話會議中提到的，我們正在修訂 2023 年的指導方針。讓我從頂線開始向您介紹我們對今年剩餘時間修改後的指導方針和假設。對於 2023 財年，我們預計淨銷售額將在 4.45 億美元至 4.65 億美元之間，低於之前的 5.63 億美元至 6.34 億美元之間。在兩個範圍的中點，這意味著大約減少 1.44 億美元，可分為 3 個主要部分。

First, the combination of weaker-than-expected results in the second quarter and our assumption of lower baseline demand in the second half of the year amounts to approximately $60 million. Second, we are no longer assuming baseline demand improvement in the second half of the year and now believe the investments we're making will first deliver stabilization of baseline sales on an absolute dollar run rate basis. The removal of this lift amounts to approximately $50 million. Third, while we still expect to benefit from the impact of new product introductions and new distribution gains, we are lowering these assumptions by approximately $35 million compared to our original assumptions given recent sales trends.

首先，第二季度弱於預期的業績和我們對下半年基線需求較低的假設相結合，總計約為 6000 萬美元。其次，我們不再假設下半年基準需求會有所改善，現在相信我們正在進行的投資將首先在絕對美元運行率的基礎上實現基准銷售的穩定。拆除該電梯的費用約為 5000 萬美元。第三，雖然我們仍然期望受益於新產品推出和新分銷收益的影響，但考慮到最近的銷售趨勢，與我們最初的假設相比，我們將這些假設降低了約 3500 萬美元。

With this new outlook, second half 2023 net sales at the midpoint are now expected to be $232 million versus $223 million in the first half of 2023. We expect to experience the addition of holiday kits in the second half of the year which is a benefit relative to the first half of 2023.

根據這一新的展望，2023 年下半年中點的淨銷售額預計為 2.32 億美元，而 2023 年上半年為 2.23 億美元。我們預計將在下半年體驗到節日套裝的增加，這是一個好處相對於2023 年上半年。

Given that our holiday kits are sold to Professional and Specialty Retail customers, primarily in the third quarter, ahead of the winter holidays, we expect net sales in the third quarter to be higher than the fourth quarter of 2023 on an absolute basis. For the same reason, we anticipate sequential improvement in sales on an absolute dollar basis in the third quarter versus the second quarter of 2023 for both the Professional and Specialty Retail channels.

鑑於我們的假日套裝主要在冬季假期前的第三季度銷售給專業和專業零售客戶，我們預計第三季度的淨銷售額絕對值將高於 2023 年第四季度。出於同樣的原因，我們預計專業零售渠道和專業零售渠道的 2023 年第三季度銷售額（以絕對美元計算）與第二季度相比將連續改善。

Conversely, we expect our Direct-to-Consumer channel to decline sequentially on an absolute dollar sales basis in the third quarter due to timing as we shipped inventory in Q2 ahead of a major customer promotion in July.

相反，我們預計我們的直接面向消費者渠道將在第三季度按絕對美元銷售額計算連續下降，因為我們在第二季度在 7 月份的主要客戶促銷活動之前發貨了庫存。

In the third quarter, from the perspective of year-over-year net sales growth rates in order of magnitude, we expect Specialty Retail to be the most pressured followed by Direct-to-Consumer and Professional.

第三季度，從同比淨銷售額增長率的數量級來看，我們預計專業零售將面臨最大的壓力，其次是直接面向消費者和專業零售。

Specialty Retail faces the most difficult comparison from a year ago when the channel experienced robust growth due to incremental distribution and a higher sell-in of holiday kits.

與一年前相比，專業零售面臨著最困難的比較，當時該渠道由於分銷增量和度假套裝銷量增加而經歷了強勁增長。

We now anticipate 500 to 600 basis points decline in gross margin for the year compared to our initial assumption of 300 to 400 basis points of contraction. The primary driver of this is deleverage from lower sales volumes on our fixed warehousing costs as well as the actions we are taking to work through excess inventory. This more than offsets the positive impact of cost savings and price increases implemented in the second half of 2022.

我們現在預計今年毛利率將下降 500 至 600 個基點，而我們最初的假設是收縮 300 至 400 個基點。造成這一現象的主要驅動因素是我們的固定倉儲成本以及我們為解決過剩庫存而採取的行動所帶來的銷量下降所帶來的去槓桿化。這足以抵消 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, as we work through higher cost and inventory obsolescence impacts and as baseline demand improves, we believe that we can return closer to our historical adjusted gross margin levels in the mid-70% range.

從中期來看，隨著我們努力克服成本上升和庫存過時的影響，以及基線需求的改善，我們相信我們可以恢復到更接近 70% 左右的歷史調整毛利率水平。

Given the lower net sales forecast against our expectations for increased operating expenses, which includes increasing our sales and marketing investment for the year, as JuE previously discussed, we now expect more adjusted EBITDA margin deleverage than our prior assumption. For 2023, we expect adjusted EBITDA in the range of $161 million to $176 million or a margin of 36.2% to 37.8%. This compares to our previous range of $261 million to $322 million or a margin of 46.4% to 50.8%.

鑑於淨銷售額預測較低，而我們對運營費用增加的預期，包括增加今年的銷售和營銷投資，正如JuE 之前討論的那樣，我們現在預計調整後的EBITDA 利潤率去槓桿化程度將高於我們之前的假設。 2023 年，我們預計調整後 EBITDA 在 1.61 億美元至 1.76 億美元之間，利潤率為 36.2% 至 37.8%。相比之下，我們之前的範圍為 2.61 億美元至 3.22 億美元，利潤率為 46.4% 至 50.8%。

We continue to expect interest expense to be $40 million and adjusted effective tax rate of approximately 20% for the year.

我們仍然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%。

In conclusion, despite our disappointment with this weaker outlook, we are reminded of the pillars that make Olaplex a unique brand and a great business. We are a science-led company, and with our commitment to making people feel more confident with healthier, more beautiful hair, we have built an industry-leading brand that enjoys trust and credibility from a highly engaged community of professional stylists and consumers. We are driving a synergistic omnichannel strategy and have the support of our customers who view us as a strategic partner of choice for the future. And our highly profitable model and strong cash generation afford us the opportunity to invest to improve our performance and capitalize on the long-term growth opportunities ahead of us.

總之，儘管我們對這種疲軟的前景感到失望，但我們想起了使 Olaplex 成為獨特品牌和偉大業務的支柱。我們是一家以科學為主導的公司，致力於讓人們對更健康、更美麗的頭髮感到更加自信，我們建立了一個行業領先的品牌，贏得了高度參與的專業造型師和消費者群體的信任和信譽。我們正在推動協同全渠道戰略，並得到客戶的支持，他們將我們視為未來的首選戰略合作夥伴。我們的高盈利模式和強大的現金生成能力為我們提供了投資機會，以提高我們的業績並利用我們面前的長期增長機會。

This concludes our prepared remarks. We will now turn the call back over to the operator for questions. Operator?

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詢問問題。操作員？

(Operator Instructions) Our first question is from Susan Anderson with Canaccord Genuity.

（操作員說明）我們的第一個問題來自 Canaccord Genuity 的 Susan Anderson。

Alec Legg on for Susan. Just a question on your sellout comments. You said it was down about 26% at key accounts. How much do you think is driven due to misinformation driving demand down versus tougher comps and then also, I believe there should be some headwinds from the sell-ins of those 1-liter bottles, which extends the need for consumers to replenish? Just any details there?

亞歷克·萊格 (Alec Legg) 替補蘇珊 (Susan)。只是關於您的售罄評論的問題。您說重要客戶的銷售額下降了約 26%。您認為有多少是由於錯誤信息導致需求下降以及競爭更加激烈造成的，而且我認為這些 1 升瓶裝的銷售應該會帶來一些阻力，從而延長了消費者補充的需求？那裡有什麼細節嗎？

Eric Tiziani here. I'll take that. So that's right. What we disclosed on the call that our net sales decline for the first half of the year was 44% against a minus 26% consumption decline at our key accounts. And that difference is partly explained by the one-offs from the prior year in sell-in. So the 1-liter launch that you just mentioned in the first half of last year, Ulta pipeline shipments from Q1 of the prior year and some impact from pricing pull forward in Q2 of last year as well, all of which we previously disclosed.

埃里克·蒂齊亞尼在這裡。我會接受的。所以說是這樣的。我們在電話會議上透露，上半年我們的淨銷售額下降了 44%，而我們主要客戶的消費下降了 -26%。這種差異的部分原因是上一年的一次性銷售。因此，您剛才提到的去年上半年推出的 1 升產品、去年第一季度的 Ulta 管道運輸量以及去年第二季度定價提前的一些影響，所有這些我們之前都披露過。

And while there's some ins and outs, the remainder of that difference between net sales decline and the consumption decline can primarily be explained by what we've seen as further customer inventory rightsizing and as JuE mentioned earlier, we believe that based on current sales, our inventory position on core items at key accounts is in a much better place going into the second half of the year. This is, of course, dynamic.

雖然存在一些細節，但淨銷售額下降和消費下降之間的其餘差異主要可以通過我們所看到的進一步客戶庫存調整來解釋，正如 JuE 之前提到的，我們認為根據當前的銷售情況，進入今年下半年，我們主要客戶核心產品的庫存狀況要好得多。當然，這是動態的。

You also asked of the minus 26%, how much is being driven by these headwinds that we've talked about. So competition, misinformation and a higher promotional environment, we're not really breaking that minus 26% out in that way, just to say that those continue to be the primary headwinds that the business has been facing.

您還詢問了負 26% 的情況，有多少是由我們討論過的這些逆風驅動的。因此，競爭、錯誤信息和更高的促銷環境，我們並沒有真正以這種方式打破負 26%，只是說這些仍然是該業務面臨的主要阻力。

And then a follow-up on the marketing spend. So you've been investing heavily in that this year. I guess, what type of ROIs are you seeing? And then is it primarily top of funnel, just to build awareness or are you also spending fairly equally or just how to think about spending on retention?

然後是營銷支出的後續行動。所以今年你在這方面投入了大量資金。我想，您看到什麼類型的投資回報率？那麼，它主要是在漏斗的頂部，只是為了提高知名度，還是您也花費相當平等的費用，或者只是如何考慮在保留方面的支出？

This is JuE, and I will take that. So we have always said, right, the category that we have created is now more attractive. And therefore, in order for us -- you can't build on the awareness for the category. We really need to step up on our investment in upper funnel as well as to support our Pro community. So we will continue to test, learn and optimize on our initiatives and it is an integrated full funnel investment approach. So we will look at the mix. And as things work, we will start to figure out what is best to count increase, whether it's in consideration, whether it's in conversion or continue with the upper funnel, which is building brand equity and brand awareness.

這是 JuE，我會接受的。所以我們一直說，對吧，我們創造的品類現在更有吸引力了。因此，對於我們來說，你不能建立對該類別的認識。我們確實需要加大對上層漏斗的投資，並支持我們的專業社區。因此，我們將繼續測試、學習和優化我們的舉措，這是一種綜合的全漏斗投資方法。所以我們將看看混合情況。隨著事情的進展，我們將開始弄清楚什麼是最好的增長，無論是在考慮中，無論是在轉化中還是繼續上層漏斗，即建立品牌資產和品牌知名度。

Our next question is from Andrea Teixeira with JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

JuE, can you comment on the exit rate of the consumption number you quoted, the consumption decline of 26%. I understand this is the first half, I guess, first half of last year. So I was hoping to see if there is any improvement there in terms of consumption or conversely, if things go worse as you progress the quarter. And then related to your investments, especially (inaudible) salons and increased awareness of the brand, how -- can you comment a bit on -- at this point, I think you've been through about 8 months of the campaign where you get a sample -- your samples -- #3 after service. Like wondering if you can give us an idea how that converted?

JuE，您能否評論一下您引用的消費數字的退出率，消費下降26%。我知道這是上半年，我想是去年上半年。因此，我希望看看消費方面是否有任何改善，或者相反，隨著本季度的進展，情況是否會變得更糟。然後與您的投資相關，特別是（聽不清）沙龍和品牌知名度的提高，您能評論一下嗎？在這一點上，我認為您已經經歷了大約 8 個月的營銷活動，您得到了樣品——您的樣品——#3 售後服務。想知道您能否告訴我們這是如何轉換的？

And lastly, on the shelf space, can you talk about -- I understand that part of the decline in guide was expectations for a modest shelf space growth. So I was wondering if you can comment on how are you feeling about before the back wall. If there is anything we should be aware of in terms of negotiating with the quarter next year.

最後，關於貨架空間，您能談談嗎？據我了解，指南下降的部分原因是對貨架空間適度增長的預期。所以我想知道你是否可以評論一下你在後牆前的感受如何。在與明年季度的談判方面，我們是否應該注意什麼？

Well, thanks, Andrea, for the question. It's a 3-parter. So what I'm going to have is Eric to answer on the consumption first and then I'll kick the investment in the salon and Pro and the shelf space question. So Eric?

嗯，謝謝安德里亞提出的問題。這是一個3人組。因此，我將首先請埃里克回答消費問題，然後我將討論沙龍和專業版的投資以及貨架空間問題。那麼埃里克？

Thanks, JuE. Andrea, so on the exit rate, you're right. The number that we quoted, the minus 26% was the consumption decline at key accounts for the first half of the year. We did say on the call that we saw some deterioration in that number in the second quarter. So it was moderately worse in the second quarter than the first quarter. And what you see in our outlook and our updated forecast is we've taken that second quarter absolute dollar sales run rate and use that to project forward a new baseline level of demand for the back half of the year. That's a key assumption change. We're now focused on using the investments we put into the business to stabilize that sales trend in the back half of the year so that we can get them to a point where we can rebound to growth in the future. So that's just a comment on the exit rate, and I'll turn it back over to JuE.

謝謝，朱厄。安德里亞，關於退出率，你是對的。我們引用的數字，負26%是今年上半年主要客戶的消費下降。我們確實在電話會議上表示，我們看到第二季度這一數字有所惡化。因此，第二季度的情況比第一季度要差一些。您在我們的展望和更新的預測中看到的是，我們採用了第二季度的絕對美元銷售運行率，並用它來預測下半年新的需求基準水平。這是一個關鍵的假設變化。我們現在的重點是利用我們投入業務的投資來穩定下半年的銷售趨勢，以便我們能夠讓它們達到未來可以反彈增長的水平。這只是對退出率的評論，我會將其轉回給 JuE。

Thanks, Eric. And Andrea, to answer your question on the investment in salon professional standpoint, as we have always stayed true to the course and this is why you are seeing us going into the field sales team with our own team members, where it's not only more cost efficient, but we can also really communicate our message much more directly and also train our own people in stores. We are seeing positive impact that's why we are moving into this direction. But it is still early for us to kind of say when everything is tracking, and we are working toward, as you have heard us say, on the back half towards stabilizing the business so that we can look at continue -- as we go into the new year with a better foundation and a more resilient Olaplex, as we have mentioned.

謝謝，埃里克。安德里亞（Andrea），從專業角度回答您關於沙龍投資的問題，因為我們始終忠於路線，這就是為什麼您看到我們與自己的團隊成員一起進入現場銷售團隊，這不僅會增加成本高效，但我們也可以更直接地傳達我們的信息，並在商店中培訓我們自己的員工。我們看到了積極的影響，這就是我們朝這個方向前進的原因。但對我們來說，一切都在跟踪中還為時過早，正如您所聽到的，我們正在努力在下半年穩定業務，以便我們可以考慮繼續——當我們進入正如我們所提到的，新的一年將擁有更好的基礎和更具彈性的Olaplex。

These -- both the salon channel and which is the Pro channel and our retail channel are very supportive of our integrated full funnel approach so you have seen that in conjunction when we do all of this out-of-home activation, there is also people in store that help support traffic that's being driven in there, and there's also visual merchandising that conveys the same message. So that is a 360 approach when the customers see it in out-of-home, in the billboards, then they go into a store and are being intercepted by a sales beauty adviser that knows about the brand and then seeing the same visual being expressed at our shelf space.

這些——沙龍渠道、專業渠道和我們的零售渠道都非常支持我們集成的全漏斗方法，所以你可以看到，當我們進行所有這些戶外激活時，還有人店內的視覺營銷也傳達了同樣的信息。因此，當顧客在戶外、廣告牌上看到它時，他們就會進入商店，並被了解該品牌的銷售美容顧問攔截，然後看到相同的視覺效果，這就是 360 度方法在我們的貨架空間。

Your other question regarding shelf space, we obviously cannot speak on behalf of the retailers, but I can tell you, we have top-to-top meetings where we continue to be able to show them the equities of Olaplex. We are still per numerator, the brand that drives the most new customers into the category. We are in the top 5 ranking in terms of haircare prestige brands in all the channels that we are in and we continue to score high on all the equities that is a brand that consumers trust that we are -- addresses damaged and repair hair, that we are also a brand that is represented by science and technology.

關於貨架空間的另一個問題，我們顯然不能代表零售商發言，但我可以告訴你，我們舉行了高層會議，我們繼續能夠向他們展示 Olaplex 的股票。我們仍然是分子，即推動大多數新客戶進入該類別的品牌。在我們所涉足的所有渠道中，我們在護髮品牌方面名列前五，並且我們在所有品牌方面繼續獲得高分，這是一個消費者信任的品牌——解決受損和修復頭髮，我們也是一個以科技為代表的品牌。

When you have all that called equities and when you have meetings, top-to-top, these are considerations that they take and my last -- my point about driving new customers into the space, into the category, that's a powerful type of driver for both the retailers and our professionals because awareness is primarily what they need from a brand so that fit it into doors will materialize into conversion.

當你擁有所有所謂的股票，當你召開從上到下的會議時，這些都是他們考慮的因素，也是我的最後一點——我關於推動新客戶進入這個領域、進入這個類別的觀點，這是一種強大的驅動力對於零售商和我們的專業人士來說，因為知名度是他們對品牌的主要需求，以便將其融入門中並實現轉化。

Our next question is from Bill Chappell with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Bill Chappell。

One question on gross margin. Just trying to understand, I mean, I think some of the pressures that you've talked about are in near term or short term as you work out inventory and obsolescence. Do you have a pretty good visibility? I mean when they will pop back? And as we look at the first quarter of 2024, should some of these things go away based on kind of your sales forecast? To feel like that some of the noncash or short-term type stuff should go away pretty quickly. So any color there?

關於毛利率的一個問題。我只是想理解，我的意思是，我認為您所談到的一些壓力是在計算庫存和過時情況時出現的近期或短期壓力。你的能見度很好嗎？我的意思是他們什麼時候會回來？當我們展望 2024 年第一季度時，根據您的銷售預測，其中一些事情是否應該消失？感覺一些非現金或短期類型的東西應該很快消失。那麼有什麼顏色嗎？

Yes, Bill, I'll take that one. We continue to believe that we can return to a normalized adjusted gross margin in the range of the mid-70% and as you point out, some of the challenges we're facing in our gross margin in 2023 are near term and we believe more temporary issues depressed in 2023 due to deleverage from lower sales on some of our fixed costs like warehousing as well as what we cited as impacts from working down higher inventory levels. That includes the impacts of providing for inventory obsolescence risk as we have in the first half of the year.

是的，比爾，我要那個。我們仍然相信，我們可以恢復到 70% 左右的正常化調整毛利率，正如您所指出的，我們在 2023 年毛利率方面面臨的一些挑戰是近期的，我們相信更多由於我們的一些固定成本（例如倉儲）銷售下降以及我們所說的降低庫存水平所帶來的影響，2023 年的臨時問題會受到抑制。這包括我們在今年上半年所面臨的庫存過時風險的影響。

So when you normalize -- when we get through stabilization in the second half of the year and return to growth, we see those tailwinds returning and are confident in an adjusted gross margin range in that mid-70s, which, of course, then gives us the ability to continue investing back into the business.

因此，當你正常化時——當我們在下半年實現穩定並恢復增長時，我們會看到這些順風回歸，並對 70 年代中期調整後的毛利率範圍充滿信心，這當然會給出我們有能力繼續投資回業務。

Got it. Just to clarify. So margins -- gross margins will, I guess, trough next quarter and then maybe improve sequentially as you move to the fourth quarter?

知道了。只是為了澄清。那麼利潤率——我猜毛利率將在下個季度觸底，然後隨著進入第四季度可能會連續改善？

So as we mentioned in our guidance color, we now expect adjusted gross margin for the full year to be that minus 500 to 600 basis points versus last year. So it's a similar trend in the second half of the year that we've seen in the first half of the year. And as sales normalize and as we get through 2023, we believe we'll have less of these temporary headwinds and return into that adjusted gross margin level of the mid-70s.

因此，正如我們在指導顏色中提到的，我們現在預計全年調整後毛利率將比去年負 500 到 600 個基點。因此，下半年的趨勢與我們在上半年看到的趨勢類似。隨著銷售正常化以及我們進入 2023 年，我們相信這些暫時的不利因素將會減少，並恢復到 70 年代中期調整後的毛利率水平。

And then just a follow-up to a question we're getting in, what gives you confidence that this is a good number in terms of sales for this year? I'm trying to understand kind of on consumer takeaway, where that fell this past quarter versus your expectations. I mean, we all knew it was going to decline. There's a lot of noise out there, but just trying to understand how much worse and what you saw intra-quarter and even as we went into July that kind of gives you confidence in the updated guidance.

接下來是我們提出的一個問題的後續，是什麼讓您相信今年的銷售額是一個不錯的數字？我試圖了解上個季度消費者外賣的情況與您的預期相比有何變化。我的意思是，我們都知道它會下降。那裡有很多噪音，但只是試圖了解更糟糕的情況以及您在季度內看到的情況，甚至在我們進入 7 月份的時候，這會讓您對更新後的指導充滿信心。

Yes, Bill, I'll take that one. We thought it was important to share quite specifically the changes in our key assumptions from our prior guidance to this guidance, which, as we mentioned, we're, number one, the change in the assumption on baseline level of demand and this new approach to forecasting the back half based on just the run rate we've seen in absolute sales in the second quarter.

是的，比爾，我要那個。我們認為，非常具體地分享我們的關鍵假設從之前的指南到本指南的變化非常重要，正如我們提到的，我們首先是需求基線水平假設的變化和這種新方法僅根據我們在第二季度的絕對銷售額中看到的運行率來預測下半年。

The second one was a more prudent view around the fact that it's going to take time for our marketing investments, particularly those upper funnel investments to show a lift. We believe it's going to help us stabilize the trend in the back half of the year, and we're very confident that it continues to be the right thing to do for the long-term trajectory of the business.

第二個是對這樣一個事實的更謹慎的看法：我們的營銷投資，特別是那些漏斗上部的投資需要時間才能顯示出提升。我們相信這將幫助我們穩定今年下半年的趨勢，並且我們非常有信心這對於業務的長期發展軌跡來說仍然是正確的事情。

And then the third change in the assumptions that we cited were around the impacts of our new innovation and new distribution in 2023, which we continue to be very proud of and believe are going to be drivers of growth into the future. It's really a call down that is more related to the overall headwinds that the brand is facing. So we believe taking this run rate from the second quarter into the second half of the year, assuming stabilization with the green shoots that JuE mentioned on the call about where we see our investments working, particularly olaplex.com, which is where we're driving a lot of traffic from our marketing investments, we believe, could be a leading indicator for that inflection point for the business.

然後，我們引用的假設的第三個變化是關於 2023 年新創新和新分銷的影響，我們仍然對此感到非常自豪，並相信這將成為未來增長的驅動力。這實際上是一個與該品牌面臨的整體阻力更相關的下調。因此，我們認為，從第二季度到下半年，假設JuE 在電話會議上提到我們看到我們的投資在哪裡發揮作用，特別是olaplex.com，這就是我們所在的地方，並假設JuE 的萌芽穩定，我們相信，通過我們的營銷投資帶來大量流量可能是該業務拐點的領先指標。

And just to clear about how July were shaping up or any improvement there?

只是為了弄清楚 7 月的情況如何或有什麼改進嗎？

We're not commenting, Bill, on any intra-quarter trading. We'll just say that all the trends we've seen to date have been reflected in the outlook that we've provided.

比爾，我們不會對任何季度內交易發表評論。我們只想說，迄今為止我們看到的所有趨勢都已反映在我們提供的前景中。

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

我們的下一個問題來自特爾西諮詢小組的達納·特爾西。

As you think about the haircare category, any updates on the performance of the haircare category and how it's done, how it's performed relative to your own performance? And with the updated guidance, are there any adjustments that are being made in terms of new product introductions or expectations on performance?

當您考慮護髮類別時，護髮類別的表現以及它是如何完成的，以及相對於您自己的表現而言，它的表現有何更新？根據更新後的指導意見，在新產品推出或性能預期方面是否有任何調整？

Thanks, Dana. This is JuE, and I will take that question. In terms of the haircare category through [Circana], that really looks at the distribution that we participate in. It has shown that the category is up 14% and obviously, you have seen that. We are reporting in Q2 that is that our Q2 is down from the last quarter. But what is encouraging to see that is that, that 14% is not an increase based on 1 or 2 brands, but a collection of brands because as we have mentioned, we have seen a lot more competition coming into the space. And then what happens is because Olaplex is the driver of new people coming into the category, you have a lot of people who are not familiar with the Prestige haircare category that is exploring and treasure hunting.

謝謝，達納。我是 JuE，我來回答這個問題。就 [Circana] 的護髮類別而言，我們確實關注了我們參與的分銷。它顯示該類別增長了 14%，顯然，您已經看到了。我們在第二季度報告稱，第二季度的業績較上季度有所下降。但令人鼓舞的是，14% 並不是基於 1 個或 2 個品牌的增長，而是基於一系列品牌的增長，因為正如我們所提到的，我們看到該領域出現了更多的競爭。然後發生的事情是，因為 Olaplex 是新人進入該類別的驅動力，所以有很多人不熟悉正在探索和尋寶的 Prestige 護髮類別。

And this is where we believe through our increased investment -- I mean, I emphasize again, it is a category that we created in such a way that we know that the new normal here for us is to really focus on the communication, the investment and the support of the Pro community, and we have been doing that and we are double clicking on it. And we believe that as this category grows, we are leading it and we can participate in it despite the current headwinds that we are seeing from the increased competition, from the promotionality in the business as well as some of the misinformation that is circulating in the market space.

這就是我們通過增加投資所相信的地方——我的意思是，我再次強調，這是我們創建的一個類別，我們知道我們的新常態是真正專注於溝通、投資以及專業社區的支持，我們一直在這樣做，並且我們雙擊它。我們相信，隨著這一類別的發展，我們正在引領它，我們可以參與其中，儘管我們目前看到競爭加劇、業務促銷以及市場上流傳的一些錯誤信息等不利因素。市場空間。

The other question that you have regarding new product innovation, we are very intentional in terms of how we innovate and support our R&D launches. And that is because any time we launch something, it has to meet 2 high box. One, it is definitely going to add to our technology in such a way that it depends on the technology that we have to really drive performance. The second is that we participate in segments that are large but yet not cannibalizing the products that we have. So a good example is when we launch a clarifying shampoo or a purple shampoo, it does not cannibalize our existing shampoo and conditioner.

您提出的關於新產品創新的另一個問題是，我們在如何創新和支持研發發布方面非常有意。那是因為任何時候我們推出一些東西，它都必須滿足 2 個高盒子的要求。第一，它肯定會以某種方式增加我們的技術，這取決於我們必須真正推動性能的技術。第二是我們參與的細分市場規模很大，但並未蠶食我們現有的產品。一個很好的例子是，當我們推出澄清洗髮水或紫色洗髮水時，它不會蠶食我們現有的洗髮水和護髮素。

So those are the very intentional strategy that we put behind our launches. And so innovation will continue to be a part of our growth but again, we emphasize, it's not about just piping in innovation for revenue but piping in innovation that truly speaks to our technology and speaks to the segment we participate and lead in.

因此，這些是我們在推出產品後所採取的非常有意的策略。因此，創新將繼續成為我們增長的一部分，但我們再次強調，這不僅僅是為了收入而進行創新，而是真正體現我們的技術以及我們參與和領導的細分市場的創新。

And just one follow-up on inventory levels. How are you thinking about inventory planning through the balance of the year given the levels of demand for Q3 and Q4?

還有一項關於庫存水平的後續行動。考慮到第三季度和第四季度的需求水平，您如何考慮今年剩餘時間的庫存計劃？

Dana, I'll take that one. So in terms of our own inventory levels, we continue to make sequential progress quarter-to-quarter in terms of bringing those inventory levels down to where we want them to be. We're not there yet, but it's very much a high priority and key focus for the team. So we're managing our production schedules. We're managing our inventory purchases very closely with our strategic suppliers and we expect to continue making progress on bringing those inventory levels down through the year, matched with our current forecast and ongoing outlook for demand. So job is not done, but we're making good progress every quarter.

達納，我要那個。因此，就我們自己的庫存水平而言，我們繼續逐季度取得連續進展，將庫存水平降至我們想要的水平。我們還沒有做到這一點，但這是團隊的高度優先事項和重點關注點。所以我們正在管理我們的生產計劃。我們正在與戰略供應商密切管理我們的庫存採購，我們預計今年將繼續在降低庫存水平方面取得進展，這與我們當前的預測和持續的需求前景相匹配。所以工作尚未完成，但我們每個季度都取得了良好的進展。

Our next question is from Rob Ottenstein with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Rob Ottenstein。

Robert Ottenstein from Evercore. A couple of follow-up questions. Number one, the DTC business, I think you mentioned in the prepared remarks that, that benefited from some shipments to a large customer, if I recall right. Can you confirm that? And then maybe if you could back out those extraordinary shipments what the DTC business would have done?

來自 Evercore 的羅伯特·奧滕斯坦。幾個後續問題。第一，DTC 業務，我想您在準備好的發言中提到，如果我沒記錯的話，該業務受益於向大客戶的一些發貨。你能證實嗎？那麼，如果您可以取消這些異常發貨，DTC 業務可能會做什麼？

Rob, I'll take that one. So yes, we did mention that the Direct-to-Consumer channel was benefiting in the second quarter from 2 primary things. One, strength in our olaplex.com business, I'll come back to that. And the second was shipments related to a key e-commerce customer related to a key promotion that was running in July. So that was normal course in terms of phasing of those shipments. I'd say past that on an underlying basis, the Direct-to-Consumer channel is the one that performed actually better than our expectations in both sell-in as well as sell-out. So that's a channel where we've seen stronger trends. And it's a channel where we've actually been directing quite a lot of our investments both in lower funnel activities, and we're seeing very good rollouts in those activities as well as our upper funnel activities driving to olaplex.com as an example.

羅布，我要那個。所以，是的，我們確實提到，直接面向消費者的渠道在第二季度受益於兩個主要因素。第一，我們 olaplex.com 業務的實力，我會回到這一點。第二個是與一個主要電子商務客戶相關的發貨量，該客戶與 7 月份進行的一次重要促銷活動有關。因此，就分階段發貨而言，這是正常過程。我想說的是，從根本上來說，直接面向消費者的渠道在銷售和銷售方面的表現實際上都比我們的預期要好。因此，我們在這個渠道中看到了更強勁的趨勢。在這個渠道中，我們實際上已經在漏斗下層活動中投入了大量投資，並且我們看到這些活動以及我們的上層漏斗​​活動（以 olaplex.com 為例）都取得了非常好的推廣效果。

Okay. And then did -- so it was down 6% if it wasn't for the shipments, would it have been down 15%, down 20%? Just trying to get an order of magnitude.

好的。然後——所以如果不是因為出貨量下降了6%，它會下降15%、下降20%嗎？只是想獲得一個數量級。

So we're not supplying specific numbers on that, but you're directionally in the right place, I would say. And I'll just reiterate there that the sell-out, the consumption levels at Direct-to-Consumer were strong, and this is not a channel where we've been dealing with any material customer inventory rightsizing. So what you see in selling is, aside from this one impact from the shipments related to this promotion is very representative of the sell-out as well.

所以我們沒有提供具體的數字，但我想說，你的方向是正確的。我只想重申，直接面向消費者的銷售和消費水平強勁，這不是我們一直在處理任何重大客戶庫存調整的渠道。因此，您在銷售中看到的是，除了與此促銷相關的發貨量的影響之外，該影響也非常具有代表性。

So the sellout would have been minus 6% roughly?

那麼售出率大約是-6%？

Again, sell-in, sell-out, and Direct-to-Consumer are staying very close to each other. So we're not giving a number, but directionally, that's correct.

同樣，售入、售出和直接面向消費者的情況彼此非常接近。所以我們沒有給出一個數字，但從方向上來說，這是正確的。

Okay. So that is -- it sounds to me like the strongest confirmation of the health of the brand and the business. Is that fair?

好的。所以，在我看來，這聽起來像是對品牌和業務健康狀況的最有力證明。這公平嗎？

I think that's fair. And JuE, I don't know if you want to add to that. But this is why we especially called out olaplex.com as a leading indicator and a green shoot that we're continuing to support and invest behind.

我認為這是公平的。 JuE，我不知道你是否想補充這一點。但這就是為什麼我們特別將 olaplex.com 稱為領先指標和我們將繼續支持和投資的新芽。

Absolutely. Nothing more to add than the fact that it is gratifying to see that because they are the closest to the end consumer at olaplex.com. So that content, that messaging, all that creative is definitely resonating.

絕對地。沒有什麼可以補充的了，我們很高興看到這一點，因為他們是 olaplex.com 上最接近最終消費者的。因此，內容、信息、所有創意肯定會引起共鳴。

Our next question is from Jonna Kim with TD Cowen.

我們的下一個問題來自 Jonna Kim 和 TD Cowen。

I just wanted to get a little bit more color on the Professional channel. I know you talked about it, but do you think it's more of a function of stylists being more frugal or competition? Just what you're seeing in that channel? And just another point, you talked about it a little bit, but how does the muted demand change or not change your new product launches for the year?

我只是想在專業頻道上獲得更多的色彩。我知道你談到過這個問題，但你認為這更多的是造型師更加節儉還是競爭的結果？你在那個頻道中看到了什麼？還有一點，您談到了一點，但疲軟的需求會如何改變或不改變您今年的新產品發布？

Jonna, I'll take that question on the Pro and the demand piece of it. Yes. In our prepared remarks, we did mention that our loyal customers in the Pro channel continues to be highly engaged with us. They are the ones who continue to really support us, talk to their clients about us and other stylists about us. But we also believe, as we mentioned, that the continuation of some of those negative factors have impacted them and especially to some stylists that are in the mix where they are hearing some of those misinformation.

喬娜，我將就 Pro 及其需求部分回答這個問題。是的。在我們準備好的發言中，我們確實提到 Pro 渠道中的忠實客戶繼續與我們保持高度互動。他們是那些繼續真正支持我們的人，與他們的客戶和其他造型師談論我們。但正如我們所提到的，我們也相信，其中一些負面因素的持續影響了他們，尤其是對一些造型師來說，他們聽到了一些錯誤信息。

So what we have done, as you have seen, is that we believe that in order for us to continue to be successful in this area, we need to continue to invest in an integrated full funnel marketing. And as we have said before, for the professionals, the #1 thing they want is for brand to grow and build an awareness so that it can drive clients do their studios. Some of them are single -- many of them rather are single payroll entity. So that really helps them to kind of look at new client acquisition on their part and their own clients who see the brand and basically said, "Look, I want to continue, can you please continue having the Olaplex treatment in my services with you."

正如您所看到的，我們所做的就是我們相信，為了讓我們在這一領域繼續取得成功，我們需要繼續投資於一體化的全漏斗營銷。正如我們之前所說，對於專業人士來說，他們想要的第一件事是品牌成長並建立知名度，以便能夠推動客戶開展他們的工作室。其中一些是單身——其中許多是單一的工資實體。因此，這確實有助於他們了解自己以及自己的客戶的新客戶獲取情況，他們看到該品牌後基本上會說：“聽著，我想繼續，您能繼續在我的服務中接受Olaplex 治療嗎？ ”

So with the Pro, we are double downing on that. We are also making sure education, helping them address any kind of product knowledge, how to use the product better, how to really allow their clients to not use a product because they feel like they need to cut some of the time and they need more time, rather to use our product, we have been able to secure information for them and how to use for them that we can still benefit from our products in a shorter time? And then just very quickly, in terms on the demand, we are believing that the Pro channel, while they will have the challenge of having some of their customers coming in between services, leading it a lot longer, but the over-the-counter sales on retail, it's an area where they can really improve on and we are spending efforts in terms of education, training to help them look at retail as part of their revenue generating short.

因此，對於 Pro 版，我們對此加倍重視。我們還確保教育，幫助他們解決任何類型的產品知識，如何更好地使用產品，如何真正允許他們的客戶不使用產品，因為他們覺得他們需要削減一些時間並且需要更多時間，而不是使用我們的產品，我們已經能夠為他們獲取信息，以及如何為他們使用我們仍然可以在更短的時間內從我們的產品中受益？然後很快，就需求而言，我們相信專業渠道，雖然他們將面臨讓一些客戶進入服務之間的挑戰，導致其領先時間更長，但場外交易渠道零售銷售，這是他們真正可以改進的領域，我們正在教育和培訓方面投入努力，幫助他們將零售視為創收的一部分。

We have reached the end of our question-and-answer session. I would like to turn the conference back to JuE Wong for closing comments.

我們的問答環節已經結束。我想請 JuE Wong 來發表閉幕評論。

Well, thank you, everyone, for your time. We look forward to speaking with you at our next earnings call. Thank you.

好的，謝謝大家抽出時間。我們期待在下一次財報電話會議上與您交談。謝謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you again for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，再次感謝您的參與。