Revlon Inc (REV) 2022 Q1 法說會逐字稿

Thank you, operator. Good afternoon, everyone, and thank you for joining the call. Earlier today, the company released its financial results for the quarter ended March 31, 2022. If you have not already received a copy of the earnings release, a copy can be obtained on the company's website at revloninc.com.

謝謝接線生。大家下午好，感謝各位參加本次電話會議。今天早些時候，該公司發布了截至2022年3月31日的季度財務業績。如果您尚未收到業績報告，可以造訪公司網站revloninc.com以取得副本。

On the call this afternoon are Debbie Perelman, our Chief Executive Officer; and Victoria Dolan, our Chief Financial Officer. The discussion today might include forward-looking statements that are based on current expectations and are provided pursuant to the Private Securities Litigation Reform Act of 1995. Information on factors that could affect actual results and cause them to differ materially from such forward-looking statements is set forth in the company's SEC filings, including its Q1 2022 Form 10-Q. The company undertakes no obligation to publicly update any forward-looking statements, except for the company's obligations under the U.S. federal securities laws.

今天下午參加電話會議的有執行長黛比·佩雷爾曼 (Debbie Perelman) 和財務長維多利亞·多蘭 (Victoria Dolan)。今天的討論可能包含基於當前預期並依據1995年《私人證券訴訟改革法案》提供的前瞻性陳述。可能影響實際結果並導致實際結果與此類前瞻性陳述存在重大差異的因素信息，已在公司提交給美國證券交易委員會 (SEC) 的文件中列出，包括其2022年第一季度10-Q表格。除美國聯邦證券法規定的義務外，本公司不承擔公開更新任何前瞻性聲明的義務。

Remarks today will include a discussion of certain GAAP and non-GAAP results. Consistent with past reporting practices, non-GAAP results exclude certain nonoperating items that are not directly attributable to the company's underlying operating performance. These adjusted measures are defined in the earnings release and are also reconciled in the financial tables at the end of the release. Please also note that certain amounts provided throughout this call have been rounded. The call today should not be copied or recorded.

今天的發言將討論部分GAAP和非GAAP財務表現。與以往的報告慣例一致，非GAAP績效剔除了某些與公司基本經營績效無直接關聯的非經營性項目。這些調整後的指標在獲利報告中有明確定義，並在報告末尾的財務報表中進行了核對。另請注意，本次電話會議中提供的某些金額已進行四捨五入。本次電話會議內容不得複製或錄音。

And with that, we'll turn the call over to Debbie.

接下來，我們將把電話交給黛比。

Thank you, Jeff. Good afternoon, everyone. Thank you for joining today's call. I am pleased to be sharing our first quarter 2022 results, which reflects strong top line and bottom line performance across our segments and regions. It's important to note that the company achieved these results despite operating in an uncertain global environment, marked by new COVID-19 lockdowns in various parts of the world, the conflict between Russia and Ukraine, and continued macro supply chain challenges.

謝謝傑夫。大家下午好。感謝各位參加今天的電話會議。我很高興與大家分享我們2022年第一季的業績，業績顯示我們各個業務部門和地區的營收和利潤均表現強勁。值得注意的是，儘管全球環境充滿不確定性，包括世界各地新冠疫情再次爆發、俄烏衝突以及持續的宏觀供應鏈挑戰，公司依然取得了這些業績。

Despite these headwinds, consumers continue to engage in the beauty category. For example, in the U.S., retail sales in the mass color cosmetics channel grew for the fourth consecutive quarter. In Europe, salon owners reported steady recovery as traffic increased and clients were eager to return to in-person services. And as consumers resume traveling, the travel retail channels continue to rebound.

儘管面臨這些不利因素，消費者對美妝品類的消費熱情依然不減。例如，在美國，大眾彩妝通路的零售額已連續第四個季度成長。在歐洲，隨著客流量的增加和顧客渴望恢復線下服務，沙龍經營者表示業務正在穩步復甦。隨著消費者恢復旅行，旅遊零售通路也持續反彈。

Revlon's first quarter 2022 as-reported net sales of $480 million represents growth of 8% relative to the prior year quarter with all reporting segments growing. As a result of this top line growth as well as internal efforts to manage costs, our adjusted EBITDA of $58 million represents an increase of $20 million or 53% and an adjusted EBITDA margin improvement of 400 basis points. This is the strongest first quarter adjusted EBITDA that Revlon has posted in the last 6 years.

露華濃2022年第一季報告淨銷售額為4.8億美元，較上年同期成長8%，所有報告業務部門均成長。得益於營收成長以及內部成本控制措施，調整後EBITDA為5,800萬美元，較上年同期成長2,000萬美元，成長率達53%，調整後EBITDA利潤率提升400個基點。這是露華濃近六年來第一季調整後EBITDA的最高水準。

While consumer demand for Revlon's products remained strong throughout the quarter, supply chain challenges are putting pressures on our ability to meet this demand. Lack of availability or long lead times for raw materials and components, along with shortages and delays across all modes of transportation, are resulting in reduced supply to support the demand. Additionally, we are faced with rising costs due to global inflation putting pressures both on consumers' wallets as well as on our margins.

儘管本季消費者對露華濃產品的需求依然強勁，但供應鏈挑戰正對我們滿足需求的能力構成壓力。原料和零件供應不足或交貨週期過長，以及各種運輸方式的短缺和延誤，導致供應減少，無法滿足需求。此外，全球通膨導致成本上升，這不僅給消費者的錢包帶來壓力，也對我們的利潤率造成擠壓。

Let me share how Revlon is navigating a complicated global environment. First, we continue to lean into our strategic pillars, focusing on our key brands in key markets as well as our digital acceleration. All of our key brands grew in the first quarter with particularly robust growth in the Revlon segment of over 15% at constant currency and continued growth in Elizabeth Arden. Contributing to this brand momentum are our recent launches, including Revlon's ColorStay Matte Lite Crayon, the #1 lip launch in the U.S. mass channel; Revlon Professional's RE/START CURL; and Elizabeth Arden's PREVAGE Anti-Aging Eye Serum 2.0, a complement to last year's PREVAGE Anti-Aging Daily Serum 2.0. Growth in our e-commerce channel is pacing with our total company growth of approximately 10%.

讓我來分享一下露華濃是如何應對複雜的全球環境的。首先，我們持續鞏固策略支柱，專注於重點市場的核心品牌以及數位轉型。第一季度，我們所有核心品牌均實現成長，其中露華濃品牌表現尤為強勁，以固定匯率計算成長超過15%，伊麗莎白雅頓品牌也持續成長。推動品牌成長動能的因素包括我們近期推出的新品，例如露華濃ColorStay Matte Lite唇膏筆（美國大眾通路銷售第一的唇部新品）、露華濃專業美髮RE/START CURL捲髮棒以及伊麗莎白雅頓PREVAGE抗老眼部精華2.0（去年推出的PREVAGE抗衰老精華我們的電商通路成長與公司整體約10%的成長速度保持一致。

Second, we are highly focused on protecting our profitability and managing our liquidity given the uncertainty in the market. We are tightly managing our costs and globally implementing select price increases across our portfolio. From an external supply chain perspective, we are rerouting freight and sourcing additional vendors for key materials and components.

其次，鑑於市場的不確定性，我們高度重視保護獲利能力和管理流動性。我們正在嚴格控製成本，並在全球範圍內對部分產品進行價格上調。從外部供應鏈的角度來看，我們正在調整貨運路線，並為關鍵材料和零件尋找新的供應商。

Our strong adjusted EBITDA performance in the first quarter is also a testament to the strength of our brands. In addition, as we continue to manage our liquidity, we recently announced an at-the-market equity program, under which we may offer and sell shares of our common stock from time to time with an aggregate offering price of up to $25 million.

我們第一季強勁的調整後 EBITDA 業績也充分證明了我們品牌的實力。此外，為了持續優化流動性，我們近期宣布了一項「以市價發行股票」計劃，根據該計劃，我們可能會不時發行和出售普通股，總發行價格最高可達 2,500 萬美元。

And finally, our leadership team and I continue to be focused on how Revlon can have a broader impact on the world. For example, we have joined One Mind At Work, a global employer-led coalition dedicated to implementing a gold standard for workplace mental wellness. The company continues to remain agile as we manage the business through ongoing expected macroeconomic uncertainties and are prepared to dynamically adjust as needed. We remain focused on executing against our strategy to drive long term, sustainable and profitable growth.

最後，我和我的領導團隊將繼續致力於探索露華濃如何對世界產生更廣泛的影響。例如，我們加入了「職場同心」（One Mind At Work）——一個由全球雇主主導的聯盟，致力於推行職場心理健康黃金標準。面對持續的宏觀經濟不確定性，公司將繼續保持靈活應對，並隨時準備根據需求進行動態調整。我們將繼續專注於執行既定策略，以實現長期、可持續和獲利性成長。

And now I will turn the call to Victoria to share the details of our first quarter 2022 results.

現在我將把電話交給維多利亞，請她分享我們 2022 年第一季業績的細節。

Thank you, Debbie, and good afternoon to everyone on the call. Before I share the details of our Q1 2022 results, I'd like to reiterate our financial strategy which supports Revlon's long-term ambition and helped us to manage through a volatile external environment.

謝謝黛比，也祝各位下午好。在分享我們2022年第一季業績詳情之前，我想重申一下我們的財務策略，該策略支持露華濃的長期發展目標，並幫助我們應對了動蕩的外部環境。

First, given the market context Debbie described earlier, we are focused on managing with agility to adapt to the ever-changing circumstances across all lines of the P&L and balance sheet. And second, our goal is to ensure sufficient liquidity to support both our growth and our capital structure. Our investment posture is focused on making smart and disciplined choices in order to align our investments to the business priorities and ultimately strengthen our core iconic brands in the market.

首先，鑑於黛比先前描述的市場環境，我們專注於靈活管理，以適應損益表和資產負債表各方面不斷變化的情況。其次，我們的目標是確保充足的流動性，以支持我們的成長和資本結構。我們的投資策略專注於做出明智且嚴謹的選擇，以使我們的投資與業務優先事項保持一致，並最終鞏固我們在市場上的核心標誌性品牌。

Our RGGA program, which remains on track to deliver its estimated in-year savings, is one example of how we are executing against our investment posture. These strategies have allowed Revlon to navigate through COVID-19, supply chain disruptions and other emerging macroeconomic challenges that continue to impact businesses across most industries.

我們的RGGA專案目前進展順利，預計將實現預期的年度節約目標，這正是我們有效執行投資策略的一個例證。這些策略使露華濃得以應對新冠疫情、供應鏈中斷以及其他持續影響各行各業的新興宏觀經濟挑戰。

Before I get into the segment details, I'd like to summarize Revlon's first quarter results on a consolidated basis. As-reported net sales were $480 million in the first quarter of 2022 compared to $445 million during the prior year period, an increase of $35 million or 8%.

在詳細介紹各業務板塊之前，我想先概括一下露華濃第一季的合併業績。 2022年第一季度，露華濃的淨銷售額為4.8億美元，而上年同期為4.45億美元，年增3500萬美元，增幅為8%。

As-reported operating income was $24 million in the first quarter of 2022 compared to an operating loss of $13 million during the prior year period, an improvement of $36 million. The higher operating income was driven primarily by higher as-reported net sales; a gross margin improvement of 190 basis points; $4 million in lower selling, general and administrative expenses, SG&A; and $4 million in lower restructuring charges.

2022年第一季度，公司報告的營業收入為2,400萬美元，而上年同期營業虧損為1,300萬美元，較上年同期改善3,600萬美元。營業收入成長主要得益於報告淨銷售額增加；毛利率提高190個基點；銷售、一般及行政費用（SG&A）減少400萬美元；以及重組費用減少400萬美元。

Adjusted operating income in the first quarter of 2022 increased by $27 million to $29 million compared to the prior year period. Adjusted EBITDA in the first quarter of 2022 was $58 million versus $38 million in the prior year period. The higher adjusted EBITDA was driven primarily by higher as-reported net sales and higher as-reported operating income.

2022年第一季調整後營業收入較上年同期增加2,700萬美元，達2,900萬美元。 2022年第一季調整後EBITDA為5,800萬美元，而上年同期為3,800萬美元。調整後EBITDA的成長主要得益於報告淨銷售額和報告營業收入的成長。

As-reported net loss was $67 million in the first quarter of 2022 versus a $96 million net loss in the prior year period. The lower net loss was primarily driven by higher operating income partially offset by higher foreign currency losses of $5 million over the prior year period and higher interest expense of $3 million over the prior year period.

2022年第一季度，公司報告淨虧損為6,700萬美元，而上年同期淨虧損為9,600萬美元。淨虧損減少的主要原因是營業收入增加，但部分被去年同期增加的500萬美元外匯損失和300萬美元利息支出所抵銷。

Next, I would like to turn to our segment results. Revlon segment net sales in the first quarter of 2022 were $182 million, a $20 million increase or 15% on a constant currency basis compared to the prior year period. The segment's growth was driven by higher net sales of Revlon color cosmetics in North America and, to a lesser extent, higher net sales of Revlon-branded professional hair care products in international regions and higher net sales of Revlon ColorSilk in North America. This increase was due primarily to the mass retail channel continuing to show signs of improvement from the effects of the ongoing COVID-19 pandemic as well as salons' increased activity in connection with lifting of restrictions related to the ongoing COVID-19 pandemic.

接下來，我想談談我們各業務板塊的業績。 2022年第一季，露華濃業務類股的淨銷售額為1.82億美元，較上年同期成長2,000萬美元，以固定匯率計算成長15%。該板塊的成長主要得益於露華濃彩妝產品在北美地區的淨銷售額成長，其次是露華濃品牌專業美髮產品在國際市場的淨銷售額成長，以及露華濃ColorSilk系列產品在北美地區的淨銷售額成長。這一成長主要歸功於大眾零售通路持續從新冠疫情的影響中復甦，以及隨著新冠疫情相關限制措施的解除，美髮沙龍的業務活動增加。

Revlon segment profit during the first quarter of 2022 was $24 million, a $16 million increase or approximately 208% on a constant currency basis compared to the prior year period. This increase was driven primarily by the Revlon segment's higher net sales, higher gross profit margin and lower brand support expenses partially offset by higher other SG&A expenses.

2022年第一季度，露華濃業務部門獲利為2,400萬美元，較上年同期成長1,600萬美元，以固定匯率計算增幅約208%。這一成長主要得益於露華濃業務部門淨銷售額和毛利率的提高以及品牌支援費用的降低，但部分被其他銷售、管理及行政費用的增加所抵銷。

Elizabeth Arden segment net sales in the first quarter of 2022 were $115 million, a $3 million increase or 4% on a constant currency basis compared to the prior year period. The segment's net sales increase was driven primarily by higher net sales of Green Tea and White Tea fragrances in international regions and, to a lesser extent, higher net sales of other Elizabeth Arden-branded fragrances partially offset by lower net sales of Ceramide largely in North America. Additionally, the segment's net sales increase was due to an increase in the travel retail business as well as signs of improvement from the effects of the ongoing COVID-19 pandemic on foot traffic at department stores and other retail outlets.

2022年第一季，伊莉莎白雅頓業務部門淨銷售額為1.15億美元，較上年同期成長300萬美元，以固定匯率計算成長4%。該部門淨銷售額的成長主要得益於綠茶和白茶香水在國際市場的淨銷售額增長，其次是其他伊麗莎白雅頓品牌香水的淨銷售額增長，但部分被神經酰胺香水在北美地區的淨銷售額下降所抵消。此外，旅遊零售業務的成長以及百貨公司和其他零售店客流量受新冠疫情影響有所緩解，也是該部門淨銷售額成長的原因之一。

Elizabeth Arden segment profit during the first quarter of 2022 was $6 million, a decrease of $3 million or 33% on a constant currency basis compared to the prior year period. This decrease was driven primarily by the Elizabeth Arden segment's higher brand support partially offset by the higher net sales that I mentioned and higher gross profit margin.

2022年第一季度，伊莉莎白雅頓業務部門的利潤為600萬美元，以固定匯率計算，較上年同期減少300萬美元，降幅達33%。利潤下降的主要原因是伊麗莎白雅頓業務部門的品牌支持力度加大，但部分被我之前提到的淨銷售額增長和毛利率提高所抵消。

Fragrances net sales in the first quarter of 2022 were $83 million, a $9 million increase, or 13% on a constant currency basis compared to the prior year period. The Fragrances segment increase in net sales was driven primarily by higher net sales of Britney Spears and, to a lesser extent, John Varvatos and Juicy Couture, mainly in international regions as well as certain other licensed fragrance brands, both in North America and international regions. This was largely due to continued recovery from the ongoing COVID-19 pandemic as well as growth in e-commerce net sales and the travel retail business.

2022年第一季香水業務淨銷售額為8,300萬美元，較上年同期成長900萬美元，以固定匯率計算成長13%。香水業務淨銷售額的成長主要得益於布蘭妮·斯皮爾斯(Britney Spears)品牌的淨銷售額增長，其次是約翰·瓦維托斯(John Varvatos)和Juicy Couture品牌，主要集中在國際市場；此外，北美和國際市場的部分其他授權香水品牌也貢獻了一定的銷售額。這主要歸功於新冠疫情持續蔓延後的市場復甦，以及電子商務和旅遊零售業務的成長。

Fragrances segment profit during the first quarter of 2022 was $12 million, a $4 million increase or 49% on a constant currency basis compared to the prior year period. This increase was driven primarily by the Fragrances segment's higher net sales and higher gross profit margin partially offset by the segment's higher other SG&A and brand support expenses.

2022年第一季，香水業務利潤為1,200萬美元，較上年同期成長400萬美元，以固定匯率計算成長49%。這一成長主要得益於香水業務淨銷售額和毛利率的提高，但部分被該業務其他銷售、管理及行政費用和品牌支援費用的增加所抵銷。

Portfolio segment net sales in the first quarter of 2022 were $99 million, a $3 million increase or 5% on a constant currency basis over the prior year period. The Portfolio segment increase in net sales was driven primarily by higher net sales of Mitchum antiperspirant deodorant in international regions; higher net sales of Cutex, both in international regions and North America; higher net sales of CND nail products in international region; and higher net sales of Almay color cosmetics in North America. This was partially offset by lower net sales of certain local and regional brands, both in international regions and in North America. The increase was primarily in connection with retail channels continuing to show signs of improvement from the effects of the ongoing COVID-19 pandemic.

2022年第一季，投資組合業務部門淨銷售額為9,900萬美元，較上年同期成長300萬美元，以固定匯率計算成長5%。投資組合業務部門淨銷售額的成長主要得益於Mitchum止汗除臭劑在國際市場的淨銷售額成長；Cutex在國際市場和北美市場的淨銷售額成長；CND美甲產品在國際市場的淨銷售額成長；以及Almay彩妝產品在北美市場的淨銷售額成長。部分成長被某些本地和區域品牌在國際市場和北美市場的淨銷售額下降所抵消。此次成長主要與零售通路持續從新冠疫情的影響中恢復有關。

Portfolio segment profit during the first quarter of 2022 was $17 million, a $4 million increase or 35% on a constant currency basis compared to the prior year period. This increase was driven primarily by the Portfolio segment's higher net sales and higher gross profit margin partially offset by the segment's higher other SG&A and brand support expenses.

2022年第一季，投資組合業務板塊利潤為1,700萬美元，較上年同期成長400萬美元，以固定匯率計算成長35%。這一成長主要得益於投資組合業務板塊淨銷售額和毛利率的提高，但部分被該板塊其他銷售、管理及行政費用和品牌支援費用的增加所抵銷。

Turning now to liquidity. As of March 31, 2022, the company had approximately $132 million of available liquidity, consisting of $70 million of unrestricted cash and cash equivalents as well as $65 million in available borrowing capacity under the product corporation's amended 2016 revolving credit facility, less float of approximately $3 million. These liquidity numbers include updates as previously disclosed.

接下來談談流動性。截至2022年3月31日，本公司擁有約1.32億美元的可用流動資金，其中包括7,000萬美元的非限制性現金及現金等價物，以及根據產品公司2016年修訂的循環信貸安排可獲得的6,500萬美元借款額度，減去約300萬美元的浮動資金。這些流動性數據已包含先前揭露的更新資訊。

First, on March 31, 2022, Revlon Consumer Products Corporation amended its asset-based revolving credit agreement dated as of September 7, 2016. The amendment, among other things, made certain changes to the calculation of the borrowing base. The amendment has the effect of temporarily increasing the borrowing base under the facility by up to $25 million until September 29, 2022. The amendment also establishes a reserve against availability in the amount of $10 million until June 29, 2022, and $15 million thereafter.

首先，露華濃消費品公司於2022年3月31日對其於2016年9月7日簽署的資產抵押循環信貸協議進行了修訂。該修訂除其他事項外，對借款基數的計算方法進行了一些修改。修訂後，該信貸額度下的借款基數暫時增加至多2,500萬美元，效期至2022年9月29日。此外，修訂還設立了1000萬美元的可用額度準備金，有效期至2022年6月29日，此後為1500萬美元。

Second, in addition, on March 30, 2022, Revlon Finance LLC amended its asset-based term loan credit agreement dated as of March 2, 2021. The amendment, among other things, made certain changes to the calculation of the borrowing base that had the effect of temporarily increasing the borrowing base for 1 year after the effective date of the amendment.

其次，2022 年 3 月 30 日，露華濃金融有限責任公司對其 2021 年 3 月 2 日簽訂的資產抵押定期貸款信貸協議進行了修訂。該修訂除其他事項外，對借款基數的計算方式進行了一些更改，其效果是在修訂生效日期後的 1 年內暫時增加借款基數。

Finally, as previously disclosed, on April 25, 2022, the company announced an ATM offering through which we may offer and sell shares of our Class A common stock from time to time with an aggregate offering price of up to $25 million.

最後，正如先前披露的那樣，該公司於 2022 年 4 月 25 日宣布了一項 ATM 發行計劃，透過該計劃，我們可以不時發行和出售我們的 A 類普通股，總發行價格最高可達 2500 萬美元。

Free cash flow of $4 million was a source of cash in the first quarter of 2022 compared to a use of $29 million in the prior year period. The increase in free cash flow was primarily driven by a lower as-reported net loss and favorable working capital changes. During the first quarter of 2022, our capital expenditures were $2 million, and the company spent $4 million on permanent displays.

2022年第一季度，公司自由現金流為400萬美元，去年同期則為2,900萬美元。自由現金流的成長主要得益於報告淨虧損的減少和營運資本的有利變化。 2022年第一季度，公司資本支出為200萬美元，其中400萬美元用於永久展示。

In summary, our first quarter 2022 results reflect the strength of our business and commercial strategy, particularly given the headwinds created by a volatile external operating environment, including supply chain challenges. Importantly, we remain singularly focused on operating with agility to deliver commercial and financial results in 2022 and beyond.

總而言之，我們2022年第一季的業績反映了我們業務和商業策略的強勁實力，尤其是在外部經營環境動盪（包括供應鏈挑戰）帶來的不利影響下，我們依然取得瞭如此佳績。重要的是，我們將繼續專注於靈活運營，以期在2022年及以後實現商業和財務目標。

I'll now hand the call over to Debbie for closing comments.

現在我將把電話交給黛比，請她做總結發言。

Thank you, Victoria. In closing, we are pleased with our first quarter 2022 results, particularly given the external context under which we are operating that I highlighted at the beginning of the call. Despite the current uncertainty in the market, we do believe that the current headwinds are not long term and that our brands have tremendous strength and opportunity for sustained growth in the market.

謝謝維多利亞。最後，我們對2022年第一季的業績感到滿意，尤其是在一開始提到的外部環境背景下。儘管目前市場存在不確定性，但我們相信當前的阻力不會持續太久，我們的品牌擁有強大的實力和持續成長的市場潛力。

And now we will open the call for questions.

現在開始接受提問。

(Operator Instructions) We'll now take our first question from Stephanie Wissink of Jefferies.

（操作員說明）現在我們來回答來自 Jefferies 的 Stephanie Wissink 的第一個問題。

(inaudible) on for Steph. I was wondering if we could get more color on the lower SG&A. Was it a reflection of restructuring? Or was it a pullback on marketing spend or something else? I was also hoping we could maybe size up the China exposure and how to best think about the near-term impacts on the model that, that may have. Also any color you have on kind of where, in terms of brands, we might be seeing the most impact? And then lastly, if you could just talk about any upcoming innovation in the pipeline.

（聽不清楚）請Steph接話。我想了解一下銷售、一般及行政費用（SG&A）下降的具體情況。這是否反映了公司重組？還是行銷支出縮減或其他原因？我也希望我們能評估中國市場的風險敞口，以及如何更好地思考這可能對公司模式產生的短期影響。另外，您能否透露一下，就哪些品牌而言，我們可能會看到最大的影響力？最後，能否談談正在籌備中的創新項目？

So that's a very good question. And obviously, one of the things if we take a step back and we talk about the volatile environment that we are working in as well as the supply chain constraints that we are addressing. We are focused on achieving our financial results, focusing on driving liquidity. And as we think about one of the levers that we have is to control our SG&A. And so yes, we are managing very aggressively our overhead spend, and we are strategically allocating our brand support, right, to the markets where we get the highest return to the markets in line to our strategic pillars.

這是一個很好的問題。顯然，如果我們退一步，回顧一下我們所處的動盪環境以及我們正在應對的供應鏈限制，就會發現，我們專注於實現財務目標，專注於提升流動性。而我們可利用的手段之一就是控制銷售、管理及行政費用（SG&A）。因此，我們正在積極控制管理費用，並根據我們的策略支柱，將品牌支援策略性地分配到能夠帶來最高回報的市場。

So I'm going to jump in here as well, Victoria. Thank you so much. So when you mentioned SG&A, obviously a component of that is our brand support. And so as we are going through the first quarter recognizing the volatility and the uncertainty with regards to the world around us as well as supply chain, we made very specific decisions with regards to where and how we are going to spend. And we did take the time to reevaluate the brand spend in key markets on key brands. And given the impact of the supply chain challenges, we are very focused on supporting the brands where we had availability of stock in market and where we felt we can meet the consumer needs at shelf.

我也想插一句，維多利亞。非常感謝。你剛才提到銷售、管理及行政費用（SG&A），顯然其中一部分是我們的品牌支援。鑑於第一季全球情勢以及供應鏈的波動性和不確定性，我們對支出方向和方式做出了非常具體的決定。我們確實花時間重新評估了重點市場中重點品牌的支出。考慮到供應鏈挑戰的影響，我們將重點放在那些市場上庫存充足且我們認為能夠滿足消費者貨架需求的品牌。

So with regards to some other parts of your question, there are multiple parts of the question. So I think you had another part with regards to the impact of China. And in the first quarter, we actually fared pretty well with regards to our results in China. Like many other companies in the industry, we started to see impact at the end of March going into April with the shutdown of Shanghai. And so we continue, obviously, to navigate through that, not only with regards to our brands, and our primary brand in China is Elizabeth Arden, but also in terms of how it's impacting our supply chain in terms of receiving components, receiving freight and containers out of China as well as looking to mitigate those risks by rerouting as we can that freight.

關於您問題的其他部分，這個問題其實包含多個面向。例如，您也提到了中國市場的影響。事實上，我們在第一季在中國的業績表現相當不錯。但和業內許多其他公司一樣，隨著上海在三月底四月初的封鎖，我們開始感受到影響。顯然，我們仍在努力應對，這不僅關係到我們的品牌（我們在中國的主要品牌是伊麗莎白雅頓），還關係到它對我們供應鏈的影響，包括從中國接收零部件、貨物和集裝箱，以及盡可能地通過重新安排貨運路線來降低風險。

Okay. So the next part of your question, I think it was innovation, if you could just confirm that?

好的。那麼你問題的下一部分，我認為是關於創新的，你能確認一下嗎？

Yes. That was it. It was -- yes, any upcoming innovation you guys have.

是的，就是這樣。是的，就是你們即將推出的任何創新。

Yes. No problem. So I'm not going to comment on innovation that's not in the market. I think that we put some very strong innovation that's currently in the market. I highlighted our Revlon lip launch as well as our Elizabeth Arden eye launch, and there are many others that are in the market today, including our Revlon Professional Curls as well, which are all performing extremely, extremely well.

是的，沒問題。所以我不會評論那些尚未上市的創新產品。我認為我們推出了一些非常優秀的創新產品，目前已經上市。我重點介紹了我們推出的露華濃唇部產品和伊麗莎白雅頓眼部產品，此外還有許多其他產品目前已上市，包括我們的露華濃專業捲髮產品，這些產品的表現都非常出色。

At this time, I'd be happy to return the call to Debbie Perelman for any concluding remarks.

此時，我很樂意回電給黛比·佩雷爾曼，請她作總結發言。

Thank you so much. Seeing no additional questions, let me say thank you to all who joined the call today and a special note to our team members around the Revlon world who are all listening. Thank you for all the efforts that you make every single day. Have a good afternoon.

非常感謝。沒有其他問題了，請容許我感謝今天所有參加電話會議的人，並特別感謝露華濃全球各地正在收聽會議的團隊成員。感謝你們每天的辛苦付出。祝大家下午愉快。

This does conclude today's Revlon First Quarter 2022 Earnings Call. Please disconnect your lines at this time, and have a wonderful day.

今天的露華濃2022年第一季財報電話會議到此結束。請您現在掛斷電話，祝您有美好的一天。