Sally Beauty Holdings Inc (SBH) 2025 Q2 法說會逐字稿

Good morning, everyone, and welcome to Sally Beauty Holdings conference call to discuss the company's second-quarter fiscal 2025 results. (Operator instructions)

大家早安，歡迎參加 Sally Beauty Holdings 電話會議，討論公司 2025 財年第二季業績。（操作員指示）

Now, I'd like to turn the call over to Jeff Harkins, Vice President of Investor Relations and Treasurer for Sally Beauty Holdings.

現在，我想將電話轉給 Sally Beauty Holdings 投資者關係副總裁兼財務主管 Jeff Harkins。

Thank you. Good morning, everyone, and thank you for joining us. With me on the call today are Denise Paulonis, President and Chief Executive Officer; and Marlo Cormier, Chief Financial Officer. Before we begin, I'd like to remind everyone that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

謝謝。大家早安，感謝大家的收看。今天與我一起參加電話會議的還有總裁兼執行長 Denise Paulonis 和財務長 Marlo Cormier。在我們開始之前，我想提醒大家，管理階層在本次電話會議上的評論可能包含《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述。

Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent annual report on Form 10-K and other filings with the SEC.

由於各種重要因素，實際結果可能與這些前瞻性陳述所示的結果有重大差異，包括我們最近的 10-K 表年度報告和向美國證券交易委員會提交的其他文件中「風險因素」部分中討論的因素。

Any forward-looking statements made on this call represent our views only as of today, and we undertake no obligation to update them. The company has provided a detailed explanation and reconciliations of its adjusting items and non-GAAP financial measures in its earnings press release and on its website.

本次電話會議中所做的任何前瞻性陳述僅代表我們截至今天的觀點，我們不承擔更新這些陳述的義務。該公司在其收益新聞稿和網站上提供了其調整項目和非公認會計準則財務指標的詳細解釋和對帳。

Now I'd like to turn the call over to Denise to begin the formal remarks.

現在我想把電話交給丹尼斯開始正式發言。

Thank you, Jeff, and good morning, everyone. For our second quarter, I'll begin by saying I'm pleased with our team's ability to deliver a 10% increase in adjusted operating earnings and 20% growth in adjusted earnings per share over the prior year despite uneven top line trends against a challenging external backdrop. Adjusted operating margin expansion of 90 basis points was supported by healthy gross margins of 52% and strict expense control.

謝謝你，傑夫，大家早安。對於我們的第二季度，首先我要說的是，儘管在充滿挑戰的外部環境下營收趨勢不均衡，但我們的團隊仍然能夠實現調整後營業收入比上年增長 10%，調整後每股收益增長 20%，對此我感到很高興。調整後的營業利潤率擴大了 90 個基點，這得益於 52% 的健康毛利率和嚴格的費用控制。

Additionally, the business continued to generate strong free cash flow in Q2, which we deployed towards further strengthening our balance sheet and returning value to shareholders through share repurchases. Looking at topline trends. After a choppy start to the quarter, which we discussed on our February earnings call, the latter part of our second quarter reflected a more challenging external environment than we anticipated.

此外，該業務在第二季度繼續產生強勁的自由現金流，我們利用這些現金流進一步加強我們的資產負債表，並透過股票回購為股東帶來價值回報。觀察主要趨勢。正如我們在二月的收益電話會議上討論的那樣，本季開局並不順利，而第二季後半段反映出的外部環境比我們預期的更具挑戰性。

This impacted purchasing behavior among both our Sally customers and professional stylists at BSG. While the beginning of the quarter primarily reflected transitory factors such as weather, wildfires, and an unusually harsh flu season, we believe consumer sentiment and spending in the latter part of fiscal Q2 were impacted more broadly by economic uncertainty.

這影響了我們的 Sally 客戶和 BSG 專業造型師的購買行為。雖然本季初主要反映了天氣、野火和異常嚴重的流感季節等暫時性因素，但我們認為，第二財季後半段的消費者情緒和支出受到了經濟不確定性的更廣泛影響。

In our Sally segment, comparable sales dipped into a slightly negative territory, declining 30 basis points. Customer behavior was similar to trends across the consumer landscape, reflecting a slow start to the quarter. While sales did pick up in March relative to January and February, trends remain below our expectations as the macro environment impacted consumer sentiment. Despite Sally's Q2 comp decline, we delivered 130 basis points of gross margin expansion and increased profitability in the segment.

在我們的 Sally 部門，可比銷售額略微下滑，下降了 30 個基點。客戶行為與整個消費領域的趨勢相似，反映出本季開局緩慢。儘管 3 月的銷售額相對於 1 月和 2 月確實有所回升，但由於宏觀環境影響了消費者情緒，趨勢仍低於我們的預期。儘管 Sally 第二季的銷售額年減，但我們的毛利率仍擴大了 130 個基點，並且該部門的獲利能力也提高了。

Notably, we continue to see strong growth in our core category of color and robust performance coming from our newer digital marketplace strategy. Looking at BSG, comparable sales declined 2.7%, reflecting the combination of a historic flu season and a challenging macro environment, which more than offset two key areas of ongoing momentum in the segment, expanded distribution and product innovation across categories and brands.

值得注意的是，我們的核心色彩類別持續保持強勁成長，而強勁的表現則源自於我們較新的數位市場策略。看看 BSG，可比銷售額下降了 2.7%，反映了歷史性的流感季節和充滿挑戰的宏觀環境的共同影響，這抵消了該部門持續增長勢頭的兩個關鍵領域，即擴大分銷和跨類別和品牌的產品創新。

Indeed, this year's unusually harsh flu incidents delivered a setback to stylist appointment books, resulting from the combination of their own illness and customer cancellations. This, in turn, naturally limited their product needs and purchasing behavior. With the flu season behind us, we're seeing a pickup in trends in the BSG segment. And while we believe the macro environment is having some degree of impact on Sally's behavior, we anticipate that sales trends will continue to improve in the second half.

事實上，今年異常嚴重的流感事件給造型師的預約帶來了打擊，這是由於他們自己生病以及顧客取消預約造成的。這反過來自然限制了他們的產品需求和購買行為。隨著流感季節的過去，我們看到 BSG 領域的趨勢正在回升。雖然我們認為宏觀環境對 Sally 的行為產生了一定程度的影響，但我們預計下半年銷售趨勢將持續改善。

In this uncertain environment, we are taking actions in the areas we can control, protecting margins and free cash flow and continuing to execute on our strategic initiatives. From a tariff perspective, our exposure to incremental costs is limited to approximately 20% of our cost of goods sold, including approximately 10% of cost of goods tied to China and the rest mainly coming from Western Europe.

在這種不確定的環境中，我們正在我們能夠控制的領域採取行動，保護利潤率和自由現金流，並繼續執行我們的策略性舉措。從關稅角度來看，我們面臨的增量成本僅限於銷售成本的約 20%，其中約 10% 的商品成本與中國有關，其餘則主要來自西歐。

In addition to having limited exposure, we also have levers to pull that will enable us to maintain our healthy gross margin profile. This includes the combination of cost sharing with vendors and price increases in the coming quarters and sourcing optimization in the medium to long term. The fiscal Q3 guidance and full-year outlook we're providing today assumes that the macroeconomic environment and broader consumer demand do not materially change.

除了有限的風險敞口之外，我們還可以採取一些措施來維持健康的毛利率狀況。這包括與供應商分攤成本、未來幾季的價格上漲以及中長期的採購優化。我們今天提供的第三季財報指引和全年展望假設宏觀經濟環境和更廣泛的消費者需求不會發生實質變化。

Against this backdrop, we remain focused on advancing our strategic pillars of enhancing our customer centricity, growing our high margin owned brands and amplifying innovation and increasing the efficiency of our operations. Noteworthy updates this quarter include our digital marketplaces, license colors on demand, product innovation, the Sally brand refresh, and Happy Beauty.

在此背景下，我們將繼續致力於推動我們的策略支柱，即加強以客戶為中心、發展高利潤的自有品牌、加強創新並提高營運效率。本季值得注意的更新包括我們的數位市場、按需授權顏色、產品創新、Sally 品牌更新和 Happy Beauty。

First, on the digital front, our marketplace strategy is enabling us to meet our Sally customers where they are, bring new customers to the brand, and drive increasing profitability to our e-commerce channel. In fiscal Q2, e-commerce sales at Sally US and Canada increased 29% to last year. This reflects strong marketplace growth as well as gains in buy online, pick up in store. In addition to strong performance from DoorDash and Instacart, we are excited to announce the expansion of our store fulfilled marketplace portfolio with the strategic addition of Uber Eats in March.

首先，在數位領域，我們的市場策略使我們能夠在當地滿足 Sally 客戶的需求，為品牌帶來新客戶，並提高我們電子商務通路的獲利能力。財年第二季度，Sally 美國和加拿大的電子商務銷售額比去年同期成長了 29%。這反映了強勁的市場成長以及線上購買、店內取貨的成長。除了 DoorDash 和 Instacart 的強勁表​​現外，我們還很高興地宣布，隨著 3 月份 Uber Eats 的策略性加入，我們的門市配送市場組合將會擴大。

Moving now to our licensed colors on-demand initiative. This continues to be a highly value-added service that is gaining increasing traction quarter to quarter. The online platform has grown to approximately 90 licensed colors. Consultations have also grown, exceeding 4,500 per week during our second quarter. All the leading indicators we track tell us the potential lifetime value of this customer is much higher than non-LCOD customers.

現在轉向我們的按需授權顏色計劃。這仍然是一種高附加價值的服務，其吸引力逐季度遞增。線上平台已發展到約 90 種授權顏色。諮詢量也有所成長，第二季每週諮詢量超過 4,500 次。我們追蹤的所有領先指標都告訴我們，該客戶的潛在終身價值遠高於非 LCOD 客戶。

LCOD customer spend is about 25% higher, driven by increased purchasing frequency and we continue to see a high percentage of customers using the service that are new to the brand. We view this elevated level of service as an important differentiator for Sally that is unmatched in the market.

由於購買頻率的增加，LCOD 客戶的支出增加了約 25%，我們繼續看到很大比例的使用該服務的客戶都是該品牌的新客戶。我們認為，這種更高水準的服務是 Sally 在市場上無與倫比的重要差異化因素。

Turning now to products innovation, which is among our core competencies and a key competitive advantage at both banners. At BSG, we're maintaining a robust innovation pipeline across categories and brands. Second-quarter launches include color and care products from sought-after brands like Amika, Schwarzkopf, Moroccanoil, and Wella.

現在談談產品創新，這是我們的核心競爭力之一，也是兩個品牌的關鍵競爭優勢。在 BSG，我們維護跨類別和品牌的強大創新管道。第二季推出的產品包括 Amika、Schwarzkopf、Moroccanoil 和 Wella 等熱門品牌的染髮和護理產品。

On April 1, BSG launched distribution of the cutting-edge hair care brand, K18, in all stores and our e-commerce site and is off to a fantastic start. We believe K18 creates an opportunity to increase the share of wallet with our stylists. Also in April, we debuted Goddess Maintenance, an innovative hair care brand, emerging as a significant player in the biotech-driven beauty revolution.

4 月 1 日，BSG 在所有商店和我們的電子商務網站上推出了尖端護髮品牌 K18，並取得了良好的開端。我們相信 K18 創造了一個機會來增加我們造型師的錢包份額。同樣在四月份，我們推出了創新護髮品牌 Goddess Maintenance，成為生物技術驅動的美容革命中的重要參與者。

Turning to Sally Beauty, we saw strong performance from many of our own brands in the quarter, including Inspired by Nature, Ion, Beauty Secrets and Bondbar. In April, we launched Madison Reed color in select US stores and on our sallybeauty.com website. In the second half of the year, we have more innovation coming in color, care, nails and cosmetics. This includes hair gloss and skin care from Soft Beauty as well as newness in color from Wella and Iroiro, which is one of our top of Vivid brands that will now be offering great coverage options. Lastly, Bondbar will be launching color conditioners, which provides great maintenance between coloring sessions.

談到莎莉美容，我們看到本季許多自有品牌表現強勁，包括 Inspired by Nature、Ion、Beauty Secrets 和 Bondbar。4 月，我們在美國精選商店和 sallybeauty.com 網站上推出了 Madison Reed 染髮劑。下半年，我們將在色彩、護理、指甲和化妝品方面推出更多創新。其中包括 Soft Beauty 的護髮素和護膚品，以及 Wella 和 Iroiro 的全新染髮產品，Iroiro 是我們 Vivid 的頂級品牌之一，現在將提供出色的遮蓋選擇。最後，Bondbar 將推出護色劑，可在染髮期間提供出色的維護效果。

These three initiatives, marketplaces, LCOD, and innovation in addition to personalization and enhanced performance marketing, which are all more mature initiatives underpinning our strategy drove over 225 basis points of comp sales growth in the quarter consistent with the results we saw from fiscal Q3 2024 through fiscal Q1 2025 before being offset by heightened macro pressures in Q2. We believe these initiatives will continue to drive consumer engagement and sales over the coming quarters and years.

這三項舉措，即市場、LCOD 和創新，以及個人化和增強績效行銷，都是我們策略的基礎，它們推動了本季度同店銷售額增長超過 225 個基點，與我們在 2024 財年第三季度至 2025 財年第一季度看到的結果一致，但在第二季度被加劇的宏觀壓力所抵消。我們相信這些舉措將在未來幾季和幾年繼續推動消費者參與度和銷售成長。

Now turning to two of our longer-term initiatives, starting with our Sally brand refresh. We're moving full steam ahead with the rollout of a fully updated and modernized Sally brand expression across all brand media touch points, in-store marketing, and our e-commerce site.

現在來談談我們的兩個長期計劃，首先是 Sally 品牌更新。我們正全力推動在所有品牌媒體接觸點、店內行銷和我們的電子商務網站上推出全面更新和現代化的 Sally 品牌表達。

Beginning this month, the consumer will see a more consistent message across all channels and brand marketing with hair care center and a focus on elevating Sally Beauty as a modern beauty retailer that inspires core DIY customers and next-generation beauty enthusiasts, which we believe will unlock new customer segments and drive stronger loyalty.

從本月開始，消費者將在所有管道和品牌行銷中看到更一致的訊息，包括護髮中心，並致力於將 Sally Beauty 提升為一家現代美容零售商，激勵核心 DIY 客戶和下一代美容愛好者，我們相信這將開拓新的客戶群並提高忠誠度。

From a retail store perspective, the initial eight locations we refreshed in the Orlando market in fiscal Q1 continued to meet with positive response. We're refreshing an additional five stores in Orlando in fiscal Q3 and expect to have over 30 total stores completed by fiscal year-end, including some in other markets. We're excited about the insights we're gaining with this initial set of stores, and our teams are energized by the opportunity to test, learn, read, and react as we continue to progress towards a potential refresh of up to 2/3 of the Sally US fleet.

從零售店的角度來看，我們在第一財季在奧蘭多市場更新的最初 8 家門市繼續獲得正面的迴響。我們將在第三財季更新奧蘭多的另外五家門市，預計到本財年末將完成超過 30 家門市的更新，其中包括一些位於其他市場的門市。我們對從這批初始商店中獲得的見解感到非常興奮，我們的團隊對測試、學習、閱讀和反應的機會感到充滿活力，因為我們將繼續朝著可能更新多達 2/3 的 Sally US 車隊的目標前進。

Shifting now to Happy Beauty initiative. We continue to be excited about the potential of this concept. And with 20 stores open, we're taking key learnings and acting upon them to further accelerate traffic and conversion. At a high level, we listened to our customers, and we're doubling down on product and in-store experience, underpinned by great story time.

現在轉向「快樂美麗」計畫。我們繼續對這一概念的潛力感到興奮。隨著 20 家門市的開業，我們正在吸收關鍵經驗並採取行動，以進一步加快客流量和轉換率。在高層，我們會傾聽顧客的意見，並加倍重視產品和店內體驗，以精彩的故事時間為基礎。

A few notable callouts. We're leading into Happy Beauty as an indie brand headquarters and focused on key trends such as Korean beauty and fragrance stories, which is a key differentiator for our core customers. We're also making a subtle shift from a pure value message to placing more emphasis on great prices on hot products.

一些值得注意的標註。我們以獨立品牌總部的身份進入 Happy Beauty，並專注於韓國美容和香水故事等主要趨勢，這是我們核心客戶的關鍵差異化因素。我們也正在進行微妙的轉變，從單純的價值訊息轉向更注重熱門產品的優惠價格。

And at the same time, we're evolving our marketing messages, highlighting on-trend brands, offering tests before you buy and utilizing influencer partnerships and social to drive traffic and conversion. We're pleased to see continued engagement with the brand, which gives us conviction that we're on the right path with our refined strategies and focus on mall locations.

同時，我們正在改進我們的行銷訊息，突出流行品牌，在購買前提供測試，並利用有影響力的合作夥伴關係和社交媒體來推動流量和轉換。我們很高興看到與品牌的持續合作，這讓我們確信，我們完善的策略和對商場位置的關注正走在正確的道路上。

As you'll hear from Marlo, we're continuing to drive operating efficiencies through our Fuel for Growth program. which is on track to generate cumulative gross margin and SG&A benefits of approximately $70 million by the end of the year. While not immune in the current environment, we are operating from a position of strength given the stickiness of our core categories centered around Pro color, our Fuel for Growth program, our strong balance sheet, and the resilience of our cash flow generation model.

正如您將從 Marlo 那裡聽到的，我們將繼續透過我們的「成長動力」計畫來提高營運效率。該計劃預計在年底前產生約 7,000 萬美元的累計毛利率和銷售、一般及行政費用收益。雖然在當前環境下我們也無法倖免，但考慮到我們以專業色彩為中心的核心類別的粘性、我們的“增長動力”計劃、我們強勁的資產負債表以及我們現金流生成模型的彈性，我們仍處於優勢地位。

Over the past several years, we've built a substantial competitive move through our commitment to customer service, education, advice, and inspiration supported by a modern omnichannel go-to-market model. These differentiators and structural advantages help us navigate periods of uncertainty and create durability. We appreciate the support of our shareholders and remain committed to building long-term value for all of our stakeholders.

在過去的幾年中，我們透過致力於客戶服務、教育、建議和啟發，並在現代全通路市場模式的支持下，建立了強大的競爭力。這些差異化因素和結構性優勢幫助我們度過不確定時期並創造持久性。我們感謝股東的支持，並將繼續致力於為所有利害關係人創造長期價值。

Now I'll turn the call over to Marlo to discuss the financials.

現在我將把電話轉給馬洛來討論財務問題。

Thank you, Denise, and good morning, everyone. We are pleased to deliver a third consecutive quarter of operating margin expansion and generate strong cash flow despite a challenging sales backdrop. Second-quarter consolidated net sales of $883 million represented a decrease of 2.8% and included 110 basis points of unfavorable foreign currency impact.

謝謝你，丹尼斯，大家早安。儘管銷售環境充滿挑戰，我們仍然很高興連續第三個季度實現營業利潤率成長並產生強勁的現金流。第二季綜合淨銷售額為 8.83 億美元，下降 2.8%，其中包括 110 個基點的不利外匯影響。

Consolidated comparable sales declined 1.3% reflecting a combination of external factors that impacted purchasing behavior among our Sally Beauty consumers and professional stylists at BSG. This included a difficult macro environment as well as an unusually harsh flu season, the California wildfires, and inclement weather.

合併可比銷售額下降 1.3%，反映了多種外部因素影響了 Sally Beauty 消費者和 BSG 專業造型師的購買行為。其中包括艱難的宏觀環境、異常嚴酷的流感季節、加州野火和惡劣的天氣。

This was partially offset by strong growth in hair color and digital marketplaces at Sally as well as continued momentum at BSG driven by expanded distribution and new brand innovation. At constant currency, global e-commerce sales were $94 million. That's up 6% versus last year and represented 11% of total net sales.

但這一成長被 Sally 染髮和數位市場的強勁成長以及 BSG 在分銷擴大和新品牌創新推動下的持續成長勢頭所部分抵消。以固定匯率計算，全球電子商務銷售額為 9,400 萬美元。這比去年增長了 6%，佔總淨銷售額的 11%。

Gross margin expanded 100 basis points to 52% in the second quarter. The year-over-year improvement is attributable to lower distribution and freight costs and reduced shrink expense across both business segments and strong product margins at Sally. Looking at the balance of the year, we expect to maintain our strong margin profile despite the dynamic tariff situation.

第二季毛利率擴大100個基點至52%。同比成長歸因於分銷和運費成本的降低以及兩個業務部門的損耗費用的減少，以及 Sally 強勁的產品利潤率。縱觀今年的餘額，儘管關稅情況動態變化，我們預計仍將保持強勁的利潤率。

From a cost of goods perspective, our exposure to incremental tariffs is limited to about 20% of our cost of goods, roughly split between China and Western Europe. Given our current inventory levels, we expect limited to no cost of goods impact in fiscal year 2025.

從商品成本的角度來看，我們受到的增量關稅影響僅限於商品成本的 20% 左右，大致分佈在中國和西歐之間。鑑於我們目前的庫存水平，我們預計 2025 財年的商品成本影響有限甚至沒有影響。

Notwithstanding changes in consumer demand, based on our scenario plan, we anticipate that our mitigation tactics will enable us to largely offset potential cost of good impacts as we look beyond fiscal 2025, primarily areas of focus include the following: cost sharing with vendors where we have long-standing relationships and constructive ongoing dialogue, passing on modest price increases on select products where price elasticity is lower. And over the longer term, evaluating opportunities to diversify our sourcing base to additional countries.

儘管消費者需求發生變化，但根據我們的情境計劃，我們預計，在展望2025財年之後，我們的緩解策略將使我們能夠在很大程度上抵消潛在的良好成本影響，主要重點領域包括：與我們有長期關係和建設性持續對話的供應商分攤成本，對價格彈性較低的特定產品適度提價。從長遠來看，我們正在評估將我們的採購基礎多元化到其他國家的機會。

Turning now to expenses. Shrink expense control drove year-over-year improvement in SG&A dollars. Adjusted SG&A in the quarter totaled $384 million, down $11 million to last year. The decline can be traced to a favorable impact from foreign currency exchange rates, savings from our Fuel for Growth program, lower advertising expense, and depreciation expense.

現在談談費用。縮減費用控制推動銷售、一般及行政費用較去年同期有所改善。本季調整後的銷售、一般及行政費用總計 3.84 億美元，較去年同期減少 1,100 萬美元。下降的原因可歸因於外匯匯率的有利影響、成長動力計畫帶來的節省、廣告費用的降低以及折舊費用的減少。

In the second quarter, we captured an incremental $8 million of pretax benefits to gross margin and SG&A from our Fuel for Growth program. And through the first half of fiscal 2025, we have delivered $20 million in pretax benefits. This leaves us on pace to capture $40 million to $45 million of savings in the full year and cumulative program savings of approximately $70 million.

在第二季度，我們從「成長動力」計畫中獲得了 800 萬美元的毛利率和銷售、一般及行政費用稅前收益。到 2025 財年上半年，我們已實現了 2,000 萬美元的稅前收益。這使得我們預計在全年節省 4,000 萬至 4,500 萬美元，累計節省約 7,000 萬美元。

Our strong gross margin performance, coupled with careful expense control, enabled us to deliver improved profitability versus a year ago. Adjusted operating margin of 8.5% increased 90 basis points. Adjusted EBITDA margin of 11.9% was up 90 basis points and adjusted diluted EPS of $0.42 was up 20% versus a year ago.

我們強勁的毛利率表現，加上謹慎的費用控制，使我們的獲利能力比去年同期有所提高。調整後的營業利益率為8.5%，增加了90個基點。調整後的 EBITDA 利潤率為 11.9%，比去年同期上漲 90 個基點，調整後的稀釋每股收益為 0.42 美元，比去年同期上漲 20%。

Moving to segment results. Sally Beauty net sales decreased 2.5% to $501 million, including 150 basis points of unfavorable FX impact on 17 fewer stores versus a year ago. Comparable sales were roughly flat at a minus 0.3%, reflecting the external factors that impact consumer spending, including weather and unusually harsh flu season and macro uncertainty. Comparable transactions were down 1%, while average ticket was up 1%.

轉向細分結果。莎莉美容淨銷售額下降 2.5% 至 5.01 億美元，其中包括與去年相比減少 17 家門市、150 個基點的不利外匯影響。可比銷售額基本持平，為-0.3%，反映了影響消費者支出的外部因素，包括天氣和異常嚴重的流感季節以及宏觀不確定性。可比交易量下降了 1%，而平均票價上漲了 1%。

At constant currency, Sally e-commerce sales were $41 million and represented 8% of segment net sales for the quarter. That's up 21% year over year, primarily driven by the strength of our digital marketplace strategy. For the Global Sally Beauty segment, Color increased 4%, while Care was down 8% compared to the prior year. At Sally US and Canada, Color was up 6% and Care decreased 8%.

以固定匯率計算，Sally 電子商務銷售額為 4,100 萬美元，佔本季分部淨銷售額的 8%。這一數字比去年同期成長了 21%，主要得益於我們數位市場策略的強勁成長。對於全球莎莉美容部門而言，彩妝產品成長了 4%，而護理產品則比前一年下降了 8%。在 Sally 美國和加拿大，彩色產品銷售上漲 6%，而護理產品銷量下降 8%。

Gross margin in our Sally segment increased 130 basis points to 61.2%. The year-over-year improvement reflects three primary factors: lower distribution and freight costs, higher product margins resulting from our improved promotional strategies and enhanced vendor relationships and lastly, lower shrink expense. Segment operating margin was strong, coming in at 15.4%, up 40 basis points to last year.

我們的 Sally 部門毛利率增加了 130 個基點，達到 61.2%。與去年同期相比，業績的改善主要體現在三個方面：分銷和運費成本的降低、促銷策略的改進和供應商關係的加強帶來的產品利潤率的提高，以及損耗費用的降低。該部門營業利潤率強勁，達到 15.4%，較去年同期上漲 40 個基點。

Looking at the BSG segment, net sales decreased 3.2% to $383 million including 50 basis points of unfavorable FX impact, while comparable sales were down 2.7%, primarily reflecting the external factors that impacted stylist appointments and related purchases including weather and unusually harsh flu season and macro uncertainty. Comparable transactions were up 3%, while average ticket was down 6%.

縱觀 BSG 部門，淨銷售額下降 3.2% 至 3.83 億美元，其中包括 50 個基點的不利外匯影響，而可比銷售額下降 2.7%，主要反映了影響造型師預約和相關購買的外部因素，包括天氣和異常嚴酷的流感季節以及宏觀不確定性。可比交易量上漲了 3%，而平均票價卻下降了 6%。

On a constant currency basis, BSG e-commerce sales were $53 million, representing 14% of segment net sales for the quarter. From a category perspective, Color was flat, and Care was down 5%. Gross margin at BSG increased 40 basis points to 39.8%, primarily reflecting lower distribution and freight costs and lower shrink expense, partially offset by lower product margins due to brand mix. Segment operating margin was also strong, coming in at 11.5%, up 60 basis points to the prior year.

以固定匯率計算，BSG 電子商務銷售額為 5,300 萬美元，佔本季分部淨銷售額的 14%。從類別角度來看，彩色產品持平，護理產品下降 5%。BSG 的毛利率增加了 40 個基點，達到 39.8%，這主要反映了分銷和運費成本的降低以及損耗費用的降低，但因品牌組合導致的產品利潤率較低而部分抵消了這一影響。該部門營業利潤率也表現強勁，達到 11.5%，比上年增長 60 個基點。

Turning to the balance sheet and cash flow. We ended the quarter in strong financial condition with $92 million of cash and cash equivalents and no outstanding borrowings under our asset-based revolving line of credit. Inventory levels remained healthy at slightly over $1 billion, down about 3% to last year.

轉向資產負債表和現金流。本季結束時，我們的財務狀況良好，擁有 9,200 萬美元的現金和現金等價物，且我們的資產循環信貸額度下沒有未償還借款。庫存水準保持健康，略高於 10 億美元，比去年下降約 3%。

During the quarter, we maintained our balanced capital allocation strategy as we continue to prioritize long-term value creation for shareholders. The business generated strong cash flow from operations of $51 million, while operating free cash flow totaled $32 million reflecting capital expenditures of $19 million in the quarter.

在本季度，我們保持了平衡的資本配置策略，並繼續優先為股東創造長期價值。該業務產生了 5,100 萬美元的強勁營運現金流，而營運自由現金流總計 3,200 萬美元，反映了本季 1,900 萬美元的資本支出。

Halfway through the year, we have delivered free cash flow of $90 million and that puts us on track to still achieve approximately $180 million to $200 million in free cash flow for the full year. We brought our net debt leverage ratio down to 1.8 times after utilizing excess cash to repay $36 million of term loan B debt in the quarter. We also deployed cash to return value to shareholders in Q2, utilizing $10 million to repurchase 1.1 million shares of stock under our existing share repurchase program.

今年過半時，我們已實現 9,000 萬美元的自由現金流，這使我們全年仍有望實現約 1.8 億至 2 億美元的自由現金流。在本季利用多餘現金償還 3,600 萬美元的定期貸款 B 債務後，我們的淨債務槓桿率降至 1.8 倍。我們還在第二季部署了現金來向股東返還價值，根據我們現有的股票回購計劃，利用 1,000 萬美元回購了 110 萬股股票。

One final note before discussing guidance. You may have seen that today we announced a four-year extension to our share repurchase program, which was set to expire in September of this year. We have approximately $500 million remaining under the original $1 billion authorization.

在討論指導之前還有最後一點說明。您可能已經看到，今天我們宣布將股票回購計畫延長四年，該計畫原定於今年 9 月到期。在最初的 10 億美元授權下，我們還剩下大約 5 億美元。

Turning now to guidance. We are introducing third-quarter guidance and updating our full-year outlook based on current business trends. Given the evolving global trade policy and how that may impact consumer sentiment and spending, the outlook we're providing today assumes no material change in the macroeconomic environment or broader consumer demand trends.

現在轉向指導。我們將根據當前的業務趨勢推出第三季指引並更新全年展望。鑑於不斷變化的全球貿易政策及其可能對消費者情緒和支出的影響，我們今天提供的展望假設宏觀經濟環境或更廣泛的消費者需求趨勢不會發生重大變化。

Our updated fiscal 2025 guidance is as follows: comparable sales are expected to be in the range of flat to down 1% versus prior expectations for flat to up 2%. Consolidated net sales are now expected to be approximately 75 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates. This compares to our prior guidance of approximately 100 basis points.

我們更新的 2025 財年指引如下：預計可比銷售額將在持平至下降 1% 的範圍內，而之前預期為持平至增長 2%。由於預計外匯匯率將產生不利影響，預計合併淨銷售額將比可比銷售額低約 75 個基點。相較之下，我們先前預測的約為 100 個基點。

Adjusted operating margin is expected to be in the range of 8% to 8.5% compared to our prior expectation of 8.5% to 9%. Our guidance for the third quarter of fiscal 2025 is as follows: comparable sales are expected to be approximately flat to down 2% versus prior year. Consolidated net sales are expected to be approximately 50 basis points lower than comparable sales due to the expected unfavorable impact from foreign exchange rates, and adjusted operating margin is expected to be in the range of 8% to 8.5%. In terms of deployment of cash, we expect to repurchase approximately $20 million of stock and repay approximately $20 million of debt during our third quarter.

調整後的營業利潤率預計在 8% 至 8.5% 之間，而我們先前預期為 8.5% 至 9%。我們對 2025 財年第三季的預期如下：預期可比銷售額與上年相比大致持平或下降 2%。由於預計外匯匯率的不利影響，預計合併淨銷售額將比可比銷售額低約 50 個基點，調整後的營業利潤率預計在 8% 至 8.5% 之間。在現金部署方面，我們預計將在第三季回購約 2,000 萬美元的股票並償還約 2,000 萬美元的債務。

We appreciate your time this morning. Now, I'll ask the operator to open the call for Q&A.

感謝您今天上午抽出時間。現在，我請接線生開始問答環節。

(Operator instructions) Oliver Chen, TD Cowen.

（操作員指示） Oliver Chen，TD Cowen。

Hi, thanks a lot for all the details. I would love for you to try to compare and contrast the Sally division relative to BSG on the lighter comp versus estimates? And what's in your control and what's not there? And then would also just love your thoughts as we forecast the e-commerce going forward. You had a really nice number there. What should we know in terms of that momentum and what will happen going forward?

你好，非常感謝您提供的所有詳細資訊。我希望您嘗試比較和對比 Sally 部門相對於 BSG 的較輕比較和估計值？什麼在你的控制範圍內，什麼不在控制範圍？當我們預測電子商務的未來發展時，我們也非常希望聽到您的想法。你的數字確實很不錯。就這種勢頭而言，我們該了解什麼？未來又會發生什麼事？

Thank you.

謝謝。

Good morning, Oliver. I'm happy to take those questions. While we saw a little bit lighter sales in both segments in the quarter, we're pleased with the things that are under our control, which are all of our strategic initiatives. And as I mentioned, they delivered about 225 basis points of cost on the total business, which is very consistent to what we've been doing in the three prior quarters before we hit a little bit of macro headwind as we came into the second quarter.

早上好，奧利佛。我很樂意回答這些問題。雖然本季兩個部門的銷售額均有所下降，但我們對可以控制的事情感到滿意，這些都是我們的策略舉措。正如我所提到的，他們為整個業務帶來了約 225 個基點的成本，這與我們在第二季度遇到一些宏觀逆風之前前三個季度的表現非常一致。

When you think about the difference between the two businesses, so Sally Ops declined just about 30 basis points after growing for three quarters. The 30 basis points decline was really about a growth in Color as well as marketplaces offset by a bit of decline in hair care. What we really just saw was a bit of softening in transactions and ticket compared to the prior quarter where customers were being more choiceful particularly at that end of the quarter with a little bit of economic uncertainty and volatility.

當您考慮兩家公司之間的差異時，您會發現 Sally Ops 在連續三個季度成長後僅下降了約 30 個基點。30 個基點的下降實際上是由於彩妝市場的成長，但被護髮產品的少量下滑所抵消。我們實際上看到的是，與上一季相比，交易量和票務量有所下降，因為在上一季末，由於經濟存在一些不確定性和波動性，客戶的選擇變得更加豐富。

But really pleased with the way that we navigated with 130 basis points improvement in gross margin, 40 basis points improvement in operating margin. And clearly, the things under our control there are all of our strategic initiatives as well as being nimble around promotional cadence.

但我們對自己的經營方式感到非常滿意，毛利率提高了 130 個基點，營業利潤率提高了 40 個基點。顯然，我們能控制的事情包括所有的策略舉措以及靈活的促銷節奏。

If you turn to BSG, BSG cost decline was bigger. It did follow five quarters of solid sales growth. And when we look at what really happened there, the stylists got hit early in the quarter, in particular, with the flu season. They came in and told us they were sick. Their families were sick. Their customers were sick. It impacted their stylist appointment book quite a bit. And in turn, we saw the pullback in the need for supplies from us.

如果轉向BSG，BSG成本下降幅度更大。其銷售額確實連續五個季度穩定成長。當我們觀察那裡實際發生的情況時，我們發現造型師在本季度初就受到了打擊，尤其是流感季節。他們進來告訴我們他們生病了。他們的家人都病了。他們的顧客病了。這對他們的造型師預約簿產生了很大影響。反過來，我們看到對我們的供應需求有所下降。

Once again, really pleased with how Color performed amidst all of that. And very pleased with the launch of K18, which we're excited as we've turned to the new quarter to see that be able to build in the business as well. And on the BSG side, we saw strengthening as we went from January, February into March.

再一次，我對 Color 在這一切中的表現感到非常滿意。我們對 K18 的推出感到非常高興，進入新季度後，我們很高興看到該業務也能取得進展。在 BSG 方面，從 1 月、2 月到 3 月，我們看到了強勁成長。

We've seen continued strengthening in April, and we expect that that will continue as well. Clearly, the biggest things under our control there are our territory expansions and our innovation, which we will continue to drive. On the e-commerce front, absolutely really pleased with the results we're seeing. What we're really intersecting now is the strength of the marketplace strategy, expansion beyond DoorDash, Instacart, Amazon, Walmart and now the addition of Uber Eats. We are seeing customers enjoy the convenience of being able to shop with us through all of those platforms.

我們看到四月份經濟持續走強，我們預計這種勢頭還會繼續。顯然，我們能控制的最大的事情是我們的領土擴張和我們的創新，我們將繼續推動這些。在電子商務方面，我們對所看到的結果感到非常滿意。我們現在真正關注的是市場策略的實力、超越 DoorDash、Instacart、亞馬遜、沃爾瑪的擴張以及現在 Uber Eats 的加入。我們看到顧客很享受透過所有這些平台在我們這裡購物的便利。

I'll also say our core e-commerce platform is starting to benefit from our personalization initiatives that are ramping up and our sophistication and being able to deliver that right message to the customer at the right time. So we're right about 11% penetration today. We think it's going to continue to grow naturally as our programs evolve and as consumers understand our awareness out there. So looking forward to continued growth.

我還要說，我們的核心電子商務平台開始受益於我們正在加強的個人化計劃和我們的成熟度，並能夠在正確的時間向客戶傳遞正確的訊息。因此，我們目前對 11% 滲透率的判斷是正確的。我們認為，隨著我們的項目不斷發展以及消費者對我們品牌認知的加深，它將繼續自然增長。因此期待持續成長。

Okay. Just a follow-up. How has the store refresh done in terms of traffic and expectations in terms of that store refresh driving some change? And then we're pretty excited or happy about Happy Beauty. What's keeping you in terms of growing that and as you assess a refinement of that model for profitability? It seems like a big addressable market.

好的。只是後續行動。就客流量和預期而言，商店更新如何推動改變？我們對 Happy Beauty 感到非常興奮或高興。是什麼阻礙了您的發展，以及您如何評估該模型的盈利能力的改進？這似乎是一個巨大的潛在市場。

Thank you.

謝謝。

We're pleased with the start of the store refresh activity. We had eight stores open for a pretty short period of time here. So it's a little early to read full results. But we are seeing customers come in and cross shop a bit more of the store, come in and talk about it being it's just Sally and just the experience that you get, the sightlines through the store, the appreciation there.

我們很高興看到商店刷新活動的開始。我們在這裡很短的時間內開了八家店。因此現在讀完整結果還為時過早。但我們看到顧客進來並在商店裡多逛了幾圈，進來後談論這只是莎莉和你獲得的體驗，穿過商店的視線，那裡的欣賞。

We're going to continue to be watching all of the underlying metrics as the sales trends kind of come in and stabilize a bit as we have those stores open and get some more open in the market but pleased with what we're seeing so far on that front. And then when we turn to Happy Beauty, really, really nice seeing that, in particular, the mall stores that we had opened ahead of the holidays are performing and are quite strong in the mix.

隨著這些商店的開業和市場上更多商店的開放，銷售趨勢將逐漸穩定下來，我們將繼續關注所有基本指標，但我們對目前在這方面看到的情況感到滿意。然後，當我們轉向 Happy Beauty 時，真的非常高興地看到，特別是在假期前開設的商場商店表現良好，並且在組合中表現相當強勁。

With 20 total stores open, we've had a lot of learnings, as I mentioned in the prepared remarks and where we're pivoting on some things, feeling good about the path on both traffic conversion as well as UPT. What we want to see is those continue to trend in that direction that we've been seeing as we assess expansion plans. So more to come in future quarters as we watch those metrics and prepare next steps as appropriate.

正如我在準備好的演講中提到的那樣，我們已經開設了 20 家門市，並且學到了很多東西，我們正在調整一些事情，對流量轉換和 UPT 的路徑感到滿意。我們希望看到的是，這些趨勢繼續朝著我們在評估擴張計劃時看到的方向發展。我們將在未來幾季關注這些指標並適當準備下一步行動，屆時將會有更多消息公佈。

Okay. Final, on the tariff changes, which are happening so dynamically. What do you think your consumer -- how do you think your consumer may respond? And what have they thought about in the past relative to all the headings? I just would love your take as these rates move lower for the hopefully, a foreseeable future.

好的。最後，關於關稅變化，其變化非常動態。您認為您的消費者－您認為您的消費者會如何反應？他們過去針對所有標題都思考過什麼？我只是想知道您的看法，因為這些利率在可預見的未來有望下降。

As you mentioned, it is certainly dynamic, nothing like waking up this morning with some new news. We're hopeful that with the news that came out this morning with some news from the UK last week as well but we'll start to get a little bit more clarity and consumers will feel less uncertainty in terms of what their behaviors and their habits will be able to be. That's what we'll be watching for.

正如你所提到的，它確實是動態的，沒有什麼比今天早上醒來時聽到一些新消息更令人高興的了。我們希望，透過今天早上發布的消息以及上週來自英國的一些消息，我們將開始獲得更清晰的信息，消費者對他們的行為和習慣將如何變化將不會感到那麼不確定。這就是我們要關注的。

The hope will be if those things settle down a bit, consumer trends will have less choppy sentiment as all the new cycles come through. But given that it was just bedding news last night, I think we're all waiting to see how customers respond in the coming weeks as we look ahead.

希望是，如果這些事情稍微平息下來，隨著所有新周期的到來，消費者趨勢將不會出現那麼多波動。但考慮到昨晚只是有關床上用品的新聞，我想我們都在等待，看看未來幾週客戶的反應。

Thanks, best regards.

謝謝，謹致問候。

Korinne Wolfmeyer, Piper Sandler.

科琳·沃爾夫邁耶，派珀·桑德勒。

Hey, good morning team. Thanks for taking the question. I'd like to touch a little bit more on the guidance change and how you're thinking about each segment into the back half. It seems like you're a little bit more optimistic on BSG. So is it fair to assume that the Sally Beauty side is the main driver of the guidance reduction? Or just how are you thinking about the trends for each segment into the back half?

嘿，大家早安。感謝您回答這個問題。我想進一步談談指導變化以及您對後半部分每個部分的看法。看來您對 BSG 更為樂觀。那麼，是否可以公平地假設 Sally Beauty 是指導減少的主要動力？或者您如何看待後半部分每個部分的趨勢？

Hi, Korinne, good morning. What I'd say overall is the guidance is really just reflecting the current environment that we've seen. As we came through the first half of the year, our comps were slightly positive. Operating earnings up 7%, operating earnings up 8%, operating energy rate at 8.4%. So the guidance really just says a steady Eddie edge as you kind of look to the second half, perhaps a little bit of softness given what we don't know about the consumer.

你好，科琳，早安。總的來說，我想說的是，該指導實際上只是反映了我們所看到的當前環境。當我們度過上半年時，我們的業績略有好轉。營業利益成長7%，營業利益成長8%，營業能耗率8.4%。因此，當你展望下半年時，該指引實際上只是表明 Eddie 的優勢將保持穩定，考慮到我們對消費者的了解，可能會出現一些疲軟。

It's two portions of the business. I think when you think about the business, BSG had a bit tougher quarter this past quarter than what the Sally business did. As we talked about that, our stylists told us that was flu-related behavior. So we do expect there to be a recovery there as we go through the second half of the year, including Q3.

這是業務的兩個部分。我認為，當你考慮業務時，BSG 上個季度的經營狀況比 Sally 業務要艱難一些。當我們談論這個問題時，我們的造型師告訴我們這是與流感相關的行為。因此，我們確實預計，今年下半年（包括第三季）經濟將出現復甦。

There's just a bigger recovery that we anticipate. And on the Sally side, I think we're just expecting that Color remains quite robust, and Care business is likely to remain a bit softer just as customers are being a bit more frugal. We saw that in the fact that we run a four for $30 hair care promotion, buying four [models] at $30 ended up feeling a little rich to our customers in March.

我們預期會出現更大範圍的復甦。就 Sally 方面而言，我認為我們只是預計 Color 業務將保持相當強勁，而 Care 業務可能會保持稍微疲軟，因為客戶變得更加節儉。我們發現，我們 3 月推出了 4 件 30 美元的護髮產品促銷活動，以 30 美元的價格購買 4 件 [型號] 的產品讓顧客感覺有點貴。

We pivoted and made that by two for $15, and we saw really nice uptake. But that's our indicator of that Sally customer and where that threshold for spending might be. But overall, we think it's just prudent as we look to the back half of the year to take into account what current business trends are and the uncertainty. We're hopeful that the news from last night and into this morning will provide us a little bit more upside than what we might have thought as last night, in fact.

我們進行了調整，將價格提高到 15 美元，我們看到了非常好的迴響。但這是我們對 Sally 客戶的指標，也是消費門檻可能在哪裡。但總體而言，我們認為，展望下半年，考慮當前的商業趨勢和不確定性是謹慎的做法。事實上，我們希望昨晚和今天早上的消息能夠為我們帶來比昨晚想像的更多好處。

Great, thanks so much. That's really helpful. And then on the margin front, pretty good margin performance, both on the gross margin and the operating margin line this quarter, but there was a bit of a guidance adjustment. So I guess, first, what would you say were the biggest drivers of the margin strengths this quarter? And then what's changing in the back half to drive some of that reduction?

太好了，非常感謝。這真的很有幫助。然後在利潤率方面，本季的毛利率和營業利潤率表現都相當不錯，但有一些指導調整。所以我想，首先，您認為本季利潤率上升的最大驅動因素是什麼？那麼後半部發生了哪些變化以推動這種減少呢？

I know there's going to be some -- maybe some deleverage with the top line adjustments. But anything else to call out would be great. Thank you.

我知道，透過營收調整，或許會有一些去槓桿化。但任何其他能喊出的聲音都很好。謝謝。

Yes. Yes, so certainly our Fuel for Growth program that is driving our margin expansion both through gross margins as well as the benefits that we're seeing through SG&A. So right now, we've got about $20 million of benefits that we've already delivered through the first half of this year. And we are on track to deliver another $40 million to $45 million on the full year for incrementality. So see that flow-through happening now.

是的。是的，我們的「成長動力」計畫無疑正在透過毛利率以及銷售、一般及行政費用 (SG&A) 帶來的收益來推動我們的利潤率擴張。因此，目前，我們已經在今年上半年發放了約 2,000 萬美元的福利。我們計劃在全年再提供 4,000 萬至 4,500 萬美元的增量資金。因此，請看看現在正在發生的流通。

As we look to the back half of the year, a few things happening. We expect the stronger margin to continue. On the SG&A side, we will see a bit of a step-up in expenses, a bit of that due to the timing of advertising as well as our investments and that's tied to our investment in brand refresh.

展望下半年，我們注意到發生了一些事情。我們預計更高的利潤率將持續下去。在銷售、一般及行政費用方面，我們將看到支出略有增加，這在一定程度上是由於廣告時機以及我們的投資，這與我們對品牌更新的投資有關。

We do have some general cost inflation that happens with merit that come in from our store associates in Q3. But we are looking to Fuel for Growth to offset a lot of that and mitigate. And so we do expect to see some continued strong performance on the earnings side, but we will see a bit of a step-up on the SG&A.

我們確實存在一些總體成本上漲，這是由於第三季度我們的店員的績效所致。但我們希望透過「成長動力」來抵消並緩解這一影響。因此，我們確實預期獲利方面將繼續表現強勁，但我們會看到銷售、一般及行政費用 (SG&A) 有所上升。

Susan Anderson, Canaccord Genuity.

蘇珊安德森（Susan Anderson），Canaccord Genuity。

Hi, good morning. Thanks for taking my question. I think maybe if you could talk a little bit about just kind of what you've seen, I guess, heading into the back half it sounds like you're expecting maybe consumers to kind of pull back in spending, but just curious if you've seen any of that since Liberation Day and the decline in consumer sentiment?

嗨，早安。感謝您回答我的問題。我想也許您可以稍微談談您所看到的情況，我想，進入下半年，聽起來您預計消費者可能會減少支出，但我只是好奇自解放日和消費者信心下降以來，您是否看到過這種情況？

And then also, I'm curious just if you're seeing any trade down to consumers kind of doing their own coloring? It sounds like coloring was strong at really at both segments. So just curious if you've seen any of that yet. Thanks.

另外，我很好奇您是否看到任何消費者開始自己染髮的現象？聽起來這兩個部分的色彩確實都很強。我只是好奇你是否已經看到這些了。謝謝。

Hey, good morning. Let me start with saying, when we thought about the first quarter, as we talked about, January and February had some transitory factors like weather and flu that weighed on retail overall. And then as we came into March, those trends really subsided. But we did see a little bit more anxiety amongst the consumer as news was starting about tariffs and potential impact to the macroeconomic environment.

嘿，早安。首先我要說的是，當我們回顧第一季時，正如我們所討論的，一月和二月有一些暫時性因素，如天氣和流感，對整體零售業造成了壓力。而進入三月，這些趨勢確實消退了。但隨著有關關稅及其對宏觀經濟環境的潛在影響的消息開始出現，我們確實看到消費者的焦慮增加。

As we started into April, those trends remain consistent. And I think in our guidance, that's what you see reflected in our guidance. What I'd say underpinning that is in BSG certainly have more transitory factors, and we've seen those mitigate and expect that as we're going through our third quarter into our fourth that you will continue to see a good performance at BSG even in the current environment that we're in.

進入四月，這些趨勢依然保持一致。我認為在我們的指導中，這就是您在我們的指導中看到的反映。我想說的是，BSG 的支撐因素肯定是暫時性的，我們已經看到這些因素有所緩解，並且預計，隨著我們進入第三季度，進入第四季度，即使在當前環境下，您仍將繼續看到 BSG 的良好表現。

And then on the Sally side, similarly, as I mentioned, we think transactions be a little bit lighter than we anticipated, and that price point and units of people putting it into their basket, there's some conservatism there. So these are minor pressure points in the grand scheme of things. We're coming off of three quarters of top line growth at Sally, five quarters at BSG. We hope that what we're seeing right now is transitory, but we have reflected that what we saw in March would continue further into the year at this point.

然後在 Sally 方面，同樣，正如我所提到的，我們認為交易量會比我們預期的要少一些，而且價格點和將其放入購物籃的人數都存在一些保守情緒。因此，從整體來看，這些都是次要的壓力點。Sally 的營收成長已經達到了三個季度，BSG 的營收成長已經達到了五個季度。我們希望目前看到的情況只是暫時的，但我們已經考慮到，三月看到的情況將會持續到今年年底。

And in terms of trade down, it's a really interesting question. The world that we see right now is more pressure on a lower middle income consumer than maybe on the middle to higher income consumer that's more likely to be using stylist services, coloring and highlighting and all of those items. We would expect that you would really not see that trade down from Pro to DIY unless you did have a full recession.

就貿易下降而言，這是一個非常有趣的問題。我們現在看到的世界對中低收入消費者的壓力可能比對中高收入消費者的壓力更大，因為中高收入消費者更有可能使用造型師服務、染髮、挑染和所有這些項目。我們預計，除非遭遇全面經濟衰退，否則你不會真正看到從 Pro 到 DIY 的交易量下降。

So something that would be much more notable in terms of a wage challenge, employment challenge come through, that would be historically kind of the trigger that you would see there. But we certainly have seen customers looking for ways to extend their services. So ways that they can do touch-up in between, just to be able to get a few extra weeks between our color.

因此，就薪資挑戰和就業挑戰而言，一些更引人注目的事情將會成為歷史上常見的觸發因素。但我們確實看到客戶正在尋找擴展服務的方法。因此，他們可以在染色期間進行修飾，以便能夠在染色之間多留出幾週的時間。

And then in general, we have not seen folks trade down in terms of brand mix in either of our businesses, although people are always looking for value. And as I mentioned, we've seen customers looking for that promotion or looking for that deal on both businesses.

總體而言，儘管人們總是在尋找價值，但我們並沒有看到人們在我們的任何一項業務中降低品牌組合的消費。正如我所提到的，我們看到客戶正在尋找這兩種業務的促銷或交易。

Simeon Gutman, Morgan Stanley.

摩根士丹利的西蒙古特曼。

Hey, good morning. Just to start, can you talk about quarter to date -- again, I know you said there was some pickup in one of the businesses, I missed that. Are you seeing a similar pickup in quarter-to-date for both of your businesses?

嘿，早安。首先，您能談談本季迄今的情況嗎？我知道您說過其中一項業務有所回升，但我錯過了。您是否看到本季迄今兩家公司的業績均出現類似的回升？

Good morning, Simeon. We are seeing improved performance as we're into Q3. As we talked about, in particular, on the BSG side of the business, that recovery post to the flu situation has been -- we've definitely seen that come through. So nice to see that we've picked up from some of those baselines but remain cautious as we're just looking at the consumer further into the third quarter and fourth quarter depending upon the way the economy moves.

早上好，西緬。進入第三季度，我們看到業績有所改善。正如我們所討論的，特別是在 BSG 業務方面，流感疫情後的恢復情況已經——我們確實看到了這一點。很高興看到我們已經從一些基線中回升，但仍然保持謹慎，因為我們只是根據經濟走勢來觀察第三季和第四季的消費者情況。

Okay. And then as a follow-up to the prior question because I got most of the answers. There was no tariff built into weaker margin for the back half of the year. Is that correct, meaning you didn't have any assumption that tariffs was going to -- were going to weaken the margins or the gross margins in the back half?

好的。然後作為對上一個問題的跟進，因為我得到了大部分答案。下半年利潤率較低，未納入關稅因素。這是正確的嗎？這意味著您沒有假設關稅會削弱下半年的利潤率或毛利率？

Yes, that's correct. Just given the timing of our fiscal year that ends in September, the timing of the tariff inventory position. We have some purchase orders on hold for China. We don't see any flow-through going through of any material impact to this year.

是的，正確。考慮到我們的財政年度於九月結束的時間，以及關稅庫存狀況的時間。我們保留了一些發往中國的採購訂單。我們認為今年不會有任何實質影響。

Okay. And then just one more. I know you said there was like flu and weather and things hurt some of the stylists in the business in early part of the quarter. Were there any -- do you have any markets where you could control for that, meaning incidence wasn't as high and/or weather was more favorable where you had more normal trends that you can point to from the quarter?

好的。然後再來一個。我知道您說過，本季初，流感和天氣等因素對一些造型師的業務造成了影響。有沒有——你們有哪些市場可以控制這種情況，也就是說發生率沒有那麼高和/或天氣更有利，而你們可以從本季指出更正常的趨勢？

Yes. What I would say is the flu was pretty broad-based. But when you look at other things like the incidence of the LA wildfires or some of the weather situations, we can very clearly see where those pockets got hit harder. When we think about both sides of the business in terms of absolute store closure days from things like weather fires, employee sickness, it was up notably versus last year, which is the basis of the analysis.

是的。我想說的是，流感影響範圍相當廣泛。但是，當你觀察其他因素，例如洛杉磯野火的發生率或一些天氣狀況時，我們可以很清楚地看到哪些地區受到的打擊更嚴重。當我們從天氣火災、員工病假等因素導致的絕對門市關閉天數的角度來考慮業務的雙方時，我們發現與去年相比，這一數字明顯上升，這是分析的基礎。

Okay, thank you. Good luck.

好的，謝謝。祝你好運。

Olivia Tong, Raymond James.

奧利維亞唐，雷蒙德詹姆斯。

Good morning. This is [Lillian] on for Olivia. And I was wondering if you could just talk about the current promotional environment? In the past, you've talked a bit about shifting your strategy. So just wondering if you anticipate having to change as consumer sentiment is weaker?

早安.這是 [Lillian] 為 Olivia 表演的。我想知道您是否可以談談當前的促銷環境？過去，您曾談到改變策略的事情。所以我想知道，隨著消費者情緒減弱，您是否預計必須做出改變？

Thank you.

謝謝。

I think we feel good about our strategy overall. When we talk about the key initiatives that we're leaning into behind customer centricity with things like licensed colors on demand, our CRM activity and personalization, the marketplace's performance that we've seen, combine that with innovation. We believe that we're on the right track with our initiatives.

我認為我們對我們的整體策略感到滿意。當我們談論以客戶為中心的關鍵措施時，我們傾向於按需授權顏色、我們的 CRM 活動和個人化，以及我們所看到的市場表現，並將其與創新結合起來。我們相信，我們的舉措正走在正確的軌道上。

When we think about anything that could pivot, or we think differently about it by the consumer environment, we're watching that pretty closely. But we think that's more about the tactics rather than fundamental changes to the strategy. So I think that we feel like we're on a good track to stay on our commitment to the initiatives that we have out there.

當我們思考任何可能發生變化的事物，或者我們根據消費者環境對其進行不同的思考時，我們都會密切關注。但我們認為這更多的是策略問題，而不是策略的根本改變。因此，我認為我們感覺自己正走在正確的軌道上，繼續履行我們對現有舉措的承諾。

And speaking to that, when you think about the quarters leading up to Q2, we were three consecutive quarters for both businesses of top line and bottom-line growth. So it is not just our sales initiatives starting to perform, but Fuel for Growth really helping the bottom line as well. So in terms of the core of the business, we're feeling quite positive about it.

說到這一點，想想第二季度之前的幾個季度，我們的營收和淨利潤已經連續三個季度成長。因此，不僅我們的銷售計劃開始發揮作用，而且「成長動力」也確實有助於提高獲利水準。因此，就業務核心而言，我們對此感到非常樂觀。

(Operator instructions) Sydney Wagner, Jefferies.

（操作員指示） 傑富瑞 (Jefferies) 的悉尼·瓦格納 (Sydney Wagner)。

Hi, I was wondering if you could kind of share what innovation you're seeing drive the most traffic or conversion in stores? Thank you.

您好，我想知道您是否可以分享您所看到的哪些創新能夠為商店帶來最多的流量或轉換率？謝謝。

Sure. On the first side of the business, I think that there is definitely a trend around glossing or glass hair looks. So very much smooth look that you see out there is certainly gaining a lot of traction across all services, whether that be color or care. On the consumer side, that trend is there as well. But I also say a trend in press-on nails is a very interesting one.

當然。在業務的第一方面，我認為光澤或玻璃頭髮造型絕對是一種趨勢。因此，您所看到的非常光滑的外觀無疑在所有服務中獲得了大量的關注，無論是顏色還是護理。從消費者角度來看，這種趨勢也存在。但我也認為按壓式指甲的趨勢非常有趣。

A different way to get that at home DIY manicured, you can do that we've seen notable strength in. We've also seen pickup in our Inspired by Nature brand, which would be our free from hair color brands that we have out there. So seeing that come through a bit as well, but we're pleased on both sides of the business to have brands that really support this.

在家中 DIY 修指甲的另一種方式，您可以做到這一點，我們已經看到了顯著的優勢。我們也看到「靈感源自自然」品牌的銷量回升，這是我們目前推出的不含染髮劑的品牌。所以看到這一點也得到了一些體現，但我們很高興雙方都有品牌真正支持這一點。

So the first side, our new launch of K18, Moroccanoil, Amika, Color Wow, Goddess Maintenance this brand new to us are all places where we're able to lean in and support those trends. And on the Sally side, the strength of our own brands in many of those places, combined with our branch partners, including Soft Beauty, Wella and others, and we're pleased that we're able to support this trend.

首先，我們新推出的 K18、Moroccanoil、Amika、Color Wow、Goddess Maintenance 這些對我們來說都是新品牌，我們能夠依賴並支持這些趨勢。而就莎莉方面而言，我們自有品牌在許多地方的實力，加上我們的分支合作夥伴，包括 Soft Beauty、Wella 等，我們很高興能夠支持這一趨勢。

Thank you. And this concludes the question-and-answer session. I would now like to turn the call back over to Denise Paulonis for closing remarks.

謝謝。問答環節到此結束。現在我想將電話轉回給 Denise Paulonis 做結束語。

Well, thank you. I appreciate everyone tuning in to our update on the second quarter as we're looking forward to the back half of our year. I appreciate all the interest of shareholders and all that we are doing to drive long-term shareholder value. And I'd just like to take a final moment to thank our team for all they do to help our customers around the globe.

好的，謝謝你。感謝大家關注我們第二季的最新消息，我們期待今年下半年的到來。我感謝所有股東的關注以及我們為推動長期股東價值所做的一切。最後，我想感謝我們的團隊為幫助全球客戶所做的一切。

And with that, we'll be back with an update next quarter.

就這樣，我們將在下個季度回來發布更新。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。