Under Armour Inc (UA) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Under Armour first quarter earnings webcast and conference call. (Operator Instructions) And as a reminder, this conference may be recorded. I would now like to turn the conference over to Mr. Lance Allega, Vice President of Investor Relations. Sir, you may begin.

女士們，先生們，美好的一天，歡迎來到 Under Armour 第一季度收益網絡直播和電話會議。 （操作員說明）作為提醒，本次會議可能會被記錄下來。我現在想將會議轉交給投資者關係副總裁 Lance Allega 先生。先生，您可以開始了。

Thank you, and good morning, everyone. Thanks for joining us on today's call to discuss Under Armour's first quarter 2018 results.

謝謝大家，大家早上好。感謝您加入我們今天的電話會議，討論安德瑪 2018 年第一季度的業績。

Participants on this call will make forward-looking statements. These statements are based on current expectations and are subject to certain uncertainties that could cause actual results to differ materially. These uncertainties are detailed in this morning's press release and documents filed regularly with the SEC, all of which can be found in our website at uabiz.com.

本次電話會議的參與者將做出前瞻性陳述。這些陳述基於當前的預期，並受到某些可能導致實際結果存在重大差異的不確定性的影響。這些不確定性在今天上午的新聞稿和定期提交給美國證券交易委員會的文件中有詳細說明，所有這些都可以在我們的網站 uabiz.com 上找到。

During our call, we may reference certain non-GAAP financial information, including adjusted and currency-neutral terms, which are defined in this morning's release. We use non-GAAP amounts as the lead in some of our discussions because we feel they more accurately represent the true operational performance and underlying results of our business.

在我們的電話會議中，我們可能會參考某些非公認會計原則的財務信息，包括調整和貨幣中性條款，這些條款在今天上午的新聞稿中定義。我們在一些討論中使用非公認會計原則金額作為主導，因為我們認為它們更準確地代表了我們業務的真實運營績效和基本結果。

You may also hear us refer to amounts in accordance with U.S. GAAP. Reconciliations of GAAP to non-U.S. GAAP measures can be found in the supplemental financial tables included in the press release, which identify and quantify all excluded items and provide management's view of why this information is useful to investors.

您可能還會聽到我們根據美國公認會計原則提及金額。 GAAP 與非美國 GAAP 措施的調節可以在新聞稿中包含的補充財務表格中找到，這些表格識別和量化了所有被排除的項目，並提供了管理層對為什麼這些信息對投資者有用的看法。

Joining us on today's call will be Under Armour Chairman and CEO, Kevin Plank; President and COO, Patrik Frisk; and our Chief Operating Officer (sic) [Chief Financial Officer], Dave Bergman. Following our prepared remarks, we'll open the call for questions.

加入我們今天電話會議的將是 Under Armour 董事長兼首席執行官 Kevin Plank； Patrik Frisk 總裁兼首席運營官；和我們的首席運營官 (原文如此) [首席財務官] Dave Bergman。在我們準備好的評論之後，我們將打開提問的電話。

And with that, I'll turn it over to Kevin.

有了這個，我會把它交給凱文。

Thanks, Lance, and good morning, everyone. I'd like to start today's call by revisiting something you've heard us say a few times over the past year: Under Armour is a great brand and a good company.

謝謝，蘭斯，大家早上好。今天的電話會議開始時，我想回顧一下您在過去一年中多次聽到我們所說的話：Under Armour 是一個偉大的品牌和一家優秀的公司。

As a growing global brand, our core purpose and reason for existing is athletic performance. Through a relentless pursuit of innovation and compelling experiences, our vision is to inspire you with performance solutions you never knew that you needed and can't imagine living without. And in this pursuit, our mission is to make you better.

作為一個成長中的全球品牌，我們的核心目標和存在的理由是運動表現。通過不懈地追求創新和引人入勝的體驗，我們的願景是用性能解決方案激發您的靈感，您從來不知道自己需要並且無法想像沒有這些解決方案。在這一追求中，我們的使命是讓您變得更好。

As we deliver on this mission and the Under Armour brand continues to gain even greater visibility, respect and consideration globally, we are amplifying our investments in innovation to ensure our product pipeline is in a better position to constantly delight our consumers moving forward.

隨著我們履行這一使命，Under Armour 品牌在全球範圍內繼續獲得更大的知名度、尊重和考慮，我們正在加大對創新的投資，以確保我們的產品線處於更好的位置，不斷讓我們的消費者感到高興。

As a company, there's no question that 2017 and 2018 make up one of the most challenging yet opportunistic periods in our history. In the midst of this inflection point, we are holistically transforming the company to ensure that the consumer is always first, simplifying our operations, increasing speed across our global ecosystem and prioritizing investments based on return.

作為一家公司，毫無疑問，2017 年和 2018 年是我們歷史上最具挑戰性但機會最多的時期之一。在這個轉折點中，我們正在對公司進行全面轉型，以確保消費者永遠是第一位的，簡化我們的運營，提高我們全球生態系統的速度，並根據回報優先考慮投資。

The ultimate goal: greater agility, decisiveness and ability to drive long-term profitability through consistent and repeatable executions.

最終目標：更高的敏捷性、果斷性和通過一致且可重複的執行來推動長期盈利能力的能力。

Over time, we have every confidence that the work we are doing to reposition and engineer our company will deliver an even stronger brand for our consumers and retail partners while simultaneously creating greater consistency and, therefore, confidence in Under Armour as an investment choice for our shareholders.

隨著時間的推移，我們完全相信，我們為重新定位和設計公司所做的工作將為我們的消費者和零售合作夥伴提供更強大的品牌，同時創造更高的一致性，因此，我們對 Under Armour 作為我們的投資選擇充滿信心。股東。

Our first quarter results should be taken as an indicator that we are making solid progress against these goals. Global revenue was up 6%, driven by a 17% increase in our direct-to-consumer business and a 27% increase in our international business. These strengths were tempered by a relatively flat result in North America.

我們的第一季度業績應該被視為我們在實現這些目標方面取得了堅實進展的指標。全球收入增長 6%，這得益於我們的直接面向消費者業務增長 17% 和我們的國際業務增長 27%。這些優勢因北美相對平坦的結果而有所緩和。

While Dave will dive deeper into the quarter and balance of the year, at the highest level, we are executing well against both our transformation and operating plans.

雖然戴夫將更深入地研究本季度和今年的平衡，但在最高水平上，我們的轉型和運營計劃都執行得很好。

Accordingly, with today's report, we are reiterating our full year 2018 outlook.

因此，在今天的報告中，我們重申了我們對 2018 年全年的展望。

Using the 4 pillars of our long-term strategy, product, story, service and team, I'd like to take a few minutes to run through some examples of the progress we're making.

使用我們的長期戰略、產品、故事、服務和團隊的 4 個支柱，我想花幾分鐘來介紹我們正在取得的進展的一些例子。

Starting with product. With our category management structure now in place and putting the consumer at the center of development, design and usage occasion, we are [assessing] every stitch, function and finishing detail of our products through the distinct sport category lens of the consumer athlete. Equally important as creating innovative product are our distribution and segmentation strategies. Going to market with significantly less SKUs, optimized margin targets and meaningfully shorter calendars means our ability to segment gets sharper with each new season.

從產品開始。隨著我們的品類管理結構已經到位，並將消費者置於開發、設計和使用場合的中心，我們正在通過消費者運動員獨特的運動品類鏡頭[評估]我們產品的每一個針腳、功能和完成細節。與創造創新產品同樣重要的是我們的分銷和細分策略。以明顯更少的 SKU、優化的利潤目標和更短的日曆進入市場意味著我們的細分能力隨著每個新的季節而變得更加清晰。

Given historically long lead times, 2018 sees a hybrid of both old and new processes coming to market. As we get deeper into this year, we're excited to unlock the power of the category management structure combined with our improved go-to-market process, all of which strengthens our ability to execute more effectively across innovation, design, supply chain, marketing and sales. A few examples of how our go-to-market has changed during this hybrid period include our ColdGear Reactor and Unstoppable apparel collections as well as our signature Curry 4, Curry 5 and Speed 2 footwear releases. Additionally, UA HOVR Phantom and Sonic running footwear, along with the new UA Project Rock collection, have already virtually sold through. There are other examples as well and certainly more to come in the second half, but all in, it's good validation of what we're capable of when we're firing on all cylinders.

鑑於歷史上較長的交貨時間，2018 年將出現新舊工藝的混合體進入市場。隨著我們今年的深入，我們很高興能夠釋放品類管理結構的力量以及我們改進的上市流程，所有這些都增強了我們在創新、設計、供應鏈、市場營銷和銷售。在這個混合時期，我們的上市方式發生了一些變化，包括我們的 ColdGear Reactor 和 Unstoppable 服裝系列，以及我們標誌性的 Curry 4、Curry 5 和 Speed 2 鞋類發布。此外，UA HOVR Phantom 和 Sonic 跑鞋以及新的 UA Project Rock 系列已經幾乎售罄。還有其他例子，當然下半場還會有更多例子，但總而言之，這很好地驗證了我們在全力以赴時的能力。

Our second pillar is story and how we connect, demonstrate and inspire athletes to make them better. On our last call, we spoke about being a louder brand, and we're doing just that. To support the launch of our UA HOVR technology platform in the first quarter, we used the first 2 expressions of Phantom and Sonic to drive a technical cushioning story for the running category. In this effort, we have 3 objectives: increase brand awareness, establish deeper credibility with runners and drive reverence through experience and conversion.

我們的第二個支柱是故事，以及我們如何联系、展示和激勵運動員讓他們變得更好。在我們上次的電話會議上，我們談到要成為一個響亮的品牌，我們正在這樣做。為了支持我們在第一季度推出的 UA HOVR 技術平台，我們使用了 Phantom 和 Sonic 的前 2 個表達式來驅動跑步類別的技術緩衝故事。在這項工作中，我們有 3 個目標：提高品牌知名度，在跑步者中建立更深的信譽，並通過體驗和轉化來提升敬意。

As our first-ever synchronized and digital-only global launch, this effort has far exceeded our initial goals for engagement: ua.com visits, perception scores and sell-through; building our credibility and awareness in these important long-term growth drivers, running and footwear, and at just 3 months in, we couldn't be more pleased.

作為我們首次同步和僅數字化的全球發布，這項努力遠遠超出了我們最初的參與目標：ua.com 訪問量、感知分數和銷售量；在這些重要的長期增長動力、跑步和鞋類方面建立我們的信譽和意識，在短短 3 個月內，我們感到非常高興。

And when you factor in our Training campaign, which just launched an effort pitching a number of UA athletes including Dwayne "The Rock" Johnson, Natasha Hastings, Dennis Smith Jr., Zoe Zhang and Jessie Graff, to name just a few, we've realized more than 1 billion impressions between these 2 campaigns. We are definitely focused on being a louder brand this year. Both products and launches for UA HOVR in Training were executed under our new go-to-market framework and continue to elevate our brand by engaging consumers globally in ways that delight and inspire to make them better looking out over the year ahead, and we're excited that this is just the edge of a flywheel that will continue to build momentum from here forward.

當您考慮到我們的培訓活動時，該活動剛剛推出了一些 UA 運動員，包括 Dwayne "The Rock" Johnson、Natasha Hastings、Dennis Smith Jr.、Zoe Zhang 和 Jessie Graff，僅舉幾例，我們'在這兩個廣告系列之間實現了超過 10 億次展示。今年我們絕對專注於成為一個響亮的品牌。 UA HOVR in Training 的產品和發布都是在我們新的上市框架下執行的，並通過以令人愉悅和激勵的方式吸引全球消費者，讓他們在未來一年更好地展望未來，從而繼續提升我們的品牌，我們令人興奮的是，這只是飛輪的邊緣，它將繼續從這裡向前發展。

With respect to service and how we deliver to our consumers directly and to our key wholesale customers, we are working under the objective of continuous improvement. Following last summer's ERP upgrade, we have greater visibility into our business in ways we did not before. From factory orders and warehouse receipts, to sell-in and sell-through, we're gaining greater clarity with respect to forecasting and inventory management. All of this is working towards optimizing our ability to reach consumers as quickly and effectively as possible through better service levels. This is a work in progress, and I'm very proud of the effort our team is putting forth to make service once again a center of excellence for our brand.

關於服務以及我們如何直接向消費者和主要批發客戶提供服務，我們的工作目標是持續改進。繼去年夏天的 ERP 升級之後，我們以前所未有的方式更深入地了解我們的業務。從工廠訂單和倉單到銷售和銷售，我們在預測和庫存管理方面變得更加清晰。所有這一切都是為了優化我們通過更好的服務水平盡可能快速有效地接觸消費者的能力。這是一項正在進行的工作，我為我們的團隊為使服務再次成為我們品牌的卓越中心而付出的努力感到非常自豪。

And speaking of team. As competitors, we like to win, but also know that winning isn't a given. The tough decisions, hard work and incremental improvements that we are making are moving us in the right direction. This team is hungry, knows what we're capable of becoming, and we are putting in the effort day in and day out to ensure that we deliver on the expectations among all stakeholders, including consumers, customers and shareholders.

說到團隊。作為競爭對手，我們喜歡獲勝，但也知道獲勝不是必然的。我們正在做出的艱難決定、辛勤工作和漸進式改進正在推動我們朝著正確的方向前進。這個團隊很飢渴，知道我們有能力成為什麼樣的人，我們日復一日地努力確保我們滿足所有利益相關者的期望，包括消費者、客戶和股東。

In summary, our operational transformation and long-term strategy to architect a global operating model capable of driving sustainable and profitable growth is on the right track with where we expected to be: heads down and focused, executing smartly and building muscle to win. We are playing the long game, and we are the best at getting better.

總而言之，我們構建能夠推動可持續和盈利增長的全球運營模式的運營轉型和長期戰略正走在我們預期的正確軌道上：低頭專注、精明執行並增強實力以贏得勝利。我們正在打持久戰，我們最擅長變得更好。

And with that, I'll turn it over to Patrik.

有了這個，我會把它交給帕特里克。

Thanks, Kevin. Since I joined Under Armour last July, we've gone through a significant amount of change. Change in business is constant, inevitable and necessary, especially when you grow and scale as quickly as we have. How a company and its culture choose to embrace change determines its ability to succeed. In this respect, our entrepreneurial roots and athletic DNA continue to serve us well in executing against our aspirational and operational goals. We know who we are, where we are and what it will take to emerge as an even stronger brand and company. This resolve, along with strengthening competencies and the agility necessary to better advantage the scale we've built, puts us in increasingly better position to win.

謝謝，凱文。自從我去年 7 月加入 Under Armour 以來，我們經歷了巨大的變化。業務的變化是持續的、不可避免的和必要的，尤其是當您像我們一樣快速成長和擴展時。一家公司及其文化如何選擇接受變革，決定了其成功的能力。在這方面，我們的創業根基和運動基因繼續為我們提供良好的服務，以實現我們的抱負和運營目標。我們知道我們是誰，我們在哪裡，以及如何成為一個更強大的品牌和公司。這種決心，以及為更好地利用我們所建立的規模所必需的能力和敏捷性的增強，使我們處於越來越有利的位置以贏得勝利。

Fundamentally, this transformation starts and ends with athletes and our ability to solve their needs through the innovative performance product we create. With insights and analytics from our global consumer segmentation study, we continue to prioritize our resources and investments to support our largest global growth opportunities while also driving toward higher long-term rates of return across the entire portfolio. Understanding our consumer's journey, the way they work out, eat and sleep and how they engage the Under Armour brand digitally, socially and as a purchase consideration further validates our strategy and gives us permission to capitalize on our strength in athletic performance.

從根本上說，這種轉變始於運動員，也始於我們通過我們創造的創新性能產品解決他們需求的能力。憑藉我們全球消費者細分研究的洞察和分析，我們繼續優先考慮我們的資源和投資，以支持我們最大的全球增長機會，同時推動整個投資組合的長期回報率更高。了解我們消費者的旅程、他們的鍛煉、飲食和睡眠方式，以及他們如何在數字、社交和購買考慮方面參與 Under Armour 品牌，這進一步驗證了我們的戰略，並允許我們利用我們在運動表現方面的優勢。

Accordingly, we have identified whitespace locations in the existing market landscape as well as opportunities to increase marketplace capacity, or more directly, fight for incremental parts of the pie while driving growth in the overall pie. It's important to note that we consider this approach to be fairly channel- and region-agnostic, especially given the size of our most direct competition under existing distribution, direct-to-consumer and international footprints, let alone an incredible distortion toward footwear. No matter how the data is cut, there is substantial difference in size, scope and scale. And regardless, being smaller affords agility as a company and more directly, authenticity and community as a brand.

因此，我們已經確定了現有市場格局中的空白位置以及增加市場容量的機會，或者更直接地，在推動整體增長的同時爭取增量部分。值得注意的是，我們認為這種方法與渠道和地區無關，特別是考慮到我們在現有分銷、直接面向消費者和國際足跡下最直接的競爭規模，更不用說對鞋類的難以置信的扭曲了。無論數據如何切割，在規模、範圍和規模上都有很大的不同。無論如何，規模較小可以為公司提供敏捷性，更直接地為品牌提供真實性和社區。

So to support all of this, we're also driving meaningful improvements in our supply chain and our overall speed to market with several initiatives geared at improving elements on both the income statement and the balance sheet. From vendor base consolidation, flow optimization and tighter inventory buys, this translates to considerably fewer SKUs, improved capacity utilization and a reduction in lead times.

因此，為了支持所有這一切，我們還通過多項旨在改善損益表和資產負債表元素的舉措，推動我們的供應鍊和整體上市速度的有意義的改進。從供應商基礎整合、流程優化和更嚴格的庫存採購來看，這意味著 SKU 的數量大大減少、產能利用率的提高和交貨時間的縮短。

For our customers, this means less complexity to merchandise our product, better service and a healthier business model. For our consumers, it means increased product flow with performance solutions they didn't know they needed and can't imagine living without.

對於我們的客戶而言，這意味著我們產品銷售的複雜性更低、服務更好和更健康的商業模式。對於我們的消費者而言，這意味著通過他們不知道自己需要並且無法想像沒有的性能解決方案來增加產品流。

Switching gears, I would like to add some color into how we performed across our business globally in the quarter. First, revenue in North America was essentially flat at $868 million or 73% of global revenue, with a slight wholesale decline being offset by growth in our direct-to-consumer business. This result was better than we had expected, primarily due to inventory management actions and higher service levels. And this does not impact our full year expectation for this region. As we continue to work through inventories coming out of the second half of 2017, we are confident in our ability to become a healthier business in North America, but it will take time and a disciplined execution against our plan, which is exactly what we're doing.

換個角度，我想為我們在本季度全球業務中的表現添加一些色彩。首先，北美的收入基本持平，為 8.68 億美元，佔全球收入的 73%，批發業務的小幅下滑被我們直接面向消費者業務的增長所抵消。這一結果好於我們的預期，主要是由於庫存管理措施和更高的服務水平。這不會影響我們對該地區的全年預期。隨著我們繼續處理 2017 年下半年的庫存，我們有信心在北美成為更健康的企業，但這需要時間和嚴格執行我們的計劃，而這正是我們的計劃。重新做。

In EMEA, revenue was up 23% to $127 million, or 11% of global revenue, with balanced growth across wholesale and direct-to-consumer, including particularly strong growth in the U.K. and solid results in Spain and Italy. As we continue to build our presence in this important market, we're proud to officially welcome Massimo Baratto on his first day as Under Armour's Vice President and Managing Director of the region. Based in Amsterdam, we look forward to Massimo grabbing the reins and helping to drive more profitable growth, brand awareness and strategic partnerships across the region.

在歐洲、中東和非洲，收入增長 23% 至 1.27 億美元，佔全球收入的 11%，批發和直接面向消費者的增長保持平衡，包括英國的特別強勁增長以及西班牙和意大利的穩健業績。隨著我們繼續在這個重要市場建立我們的影響力，我們很自豪地正式歡迎 Massimo Baratto 在他擔任 Under Armour 副總裁兼該地區董事總經理的第一天。總部設在阿姆斯特丹，我們期待 Massimo 掌控局面，幫助推動整個地區的利潤增長、品牌知名度和戰略合作夥伴關係。

Revenue in Asia Pacific was up 35% to $116 million, representing 10% of global revenue in the quarter. This region also saw a strong balanced growth in both the wholesale and direct-to-consumer sides of the business and continued significant momentum in China. Building off Kevin's earlier comments on the global campaign for UA HOVR, I'd be remiss not to point out that China got the largest allocation of product at launch time. This is a testament to knowing our consumer and their demand profile, investing in areas with the highest rates of return and overall utilizing our global scale to significantly amplify our brand. With the combination of adding more than 200 doors this year and the highest distortion of e-commerce as a percent of revenue of any of our businesses around the world, we remain bullish on China.

亞太地區收入增長 35% 至 1.16 億美元，佔本季度全球收入的 10%。該地區的批發業務和直接面向消費者的業務也實現了強勁的平衡增長，並在中國繼續保持強勁勢頭。根據 Kevin 早些時候對 UA HOVR 全球活動的評論，我不得不指出中國在發佈時獲得了最大的產品分配。這證明了我們了解我們的消費者及其需求概況，投資於回報率最高的領域，並整體利用我們的全球規模來顯著擴大我們的品牌。加上今年新增了 200 多個門，以及電子商務占我們全球任何業務收入百分比的最高扭曲，我們仍然看好中國。

And finally, revenue for Latin America was up 21% to $47 million or about 4% of total revenue. In this region, we're focused on optimizing our mix of the right partners and businesses with certain countries to better control the brand and drive high return. The continued momentum in Mexico and Chile, along with expansion in Argentina and Colombia, give us a wide berth to tackle these dynamic markets while protecting the brand.

最後，拉丁美洲的收入增長了 21%，達到 4700 萬美元，約佔總收入的 4%。在該地區，我們專注於優化與某些國家/地區的合適合作夥伴和業務的組合，以更好地控製品牌並推動高回報。墨西哥和智利的持續發展勢頭，以及阿根廷和哥倫比亞的擴張，為我們在應對這些充滿活力的市場的同時保護品牌提供了廣闊的空間。

So to close. A little less than a year into my role here at Under Armour, knowing what I know today, what I see ahead and how this company, this team and this brand are building best-of-class professionalism into everything we execute against, I'm thrilled with the progress we're making and the opportunity to help lead this brand.

所以要關閉。我在安德瑪 (Under Armour) 任職還不到一年，我知道我今天所知道的，我對未來的看法，以及這家公司、這個團隊和這個品牌如何將一流的專業精神融入我們所針對的一切，我'我對我們正在取得的進展以及幫助領導這個品牌的機會感到興奮。

Dave?

戴夫？

Thanks, Patrik. Given today's results and the reiteration of our full year outlook, we feel confident in the progress we are making against our short-term strategies to become more operationally efficient, and thus, the foundation we are setting to become a more sustainable and profitable business in the long run.

謝謝，帕特里克。鑑於今天的業績和我們對全年展望的重申，我們對我們在短期戰略方面取得的進展充滿信心，以提高運營效率，因此，我們為成為更具可持續性和盈利能力的企業奠定了基礎。從長遠來看。

Before we dive into the first quarter, I'd like to provide some context around the 2018 restructuring plan and the onetime items that impacted us. As announced on February 13, we are estimating pretax restructuring and related charges of approximately $110 million to $130 million in 2018. In the first quarter, we recognized $45 million of these charges, comprised of $32 million in cash and $13 million in noncash-related charges.

在我們進入第一季度之前，我想提供一些關於 2018 年重組計劃和影響我們的一次性項目的背景信息。正如 2 月 13 日宣布的那樣，我們估計 2018 年的稅前重組和相關費用約為 1.1 億美元至 1.3 億美元。在第一季度，我們確認了其中 4500 萬美元的費用，其中包括 3200 萬美元的現金和 1300 萬美元的非現金相關費用收費。

Revenue in the first quarter was up 6% to $1.2 billion, or up 4% if you exclude the impacts of foreign currency.

第一季度收入增長 6% 至 12 億美元，如果排除外匯影響，則增長 4%。

Clicking down, let's start with revenue by channel. Our wholesale business was up 1% to $779 million, driven by strong results in our international business. This was tempered by a slight decline in North America, which was a better-than-expected result due primarily to the factors Patrik noted.

點擊向下，讓我們從按渠道劃分的收入開始。在我們的國際業務強勁業績的推動下，我們的批發業務增長了 1% 至 7.79 億美元。北美的小幅下降緩和了這一點，這主要是由於帕特里克指出的因素，這一結果好於預期。

Direct-to-consumer revenue grew 17% to $352 million, driven by continued strong results in our international and global e-commerce businesses. DTC was 30% of total global revenue in the quarter.

在我們的國際和全球電子商務業務持續強勁業績的推動下，直接面向消費者的收入增長了 17% 至 3.52 億美元。 DTC 佔本季度全球總收入的 30%。

Licensing was up 9% to $26 million, primarily driven by growth in our youth and Japanese businesses.

授權增長 9% 至 2600 萬美元，主要受我們青年和日本業務增長的推動。

By region, revenue in North America was essentially flat at $868 million, which was better than our expectations for the quarter based on factors we mentioned earlier. On a currency-neutral basis, North America revenue was down 1%.

按地區劃分，北美的收入基本持平，為 8.68 億美元，好於我們基於前面提到的因素對本季度的預期。在貨幣中性的基礎上，北美收入下降了 1%。

Our international business continued its strong and balanced growth, posting a 27% increase in revenue to reach $289 million or 24% of total revenue in the first quarter. On a currency-neutral basis, international revenue was up 20%.

我們的國際業務繼續保持強勁且平衡的增長，第一季度收入增長 27%，達到 2.89 億美元，佔總收入的 24%。在貨幣中性的基礎上，國際收入增長了 20%。

And finally, our Connected Fitness business was up 34%, driven by increases in subscription and advertising revenue.

最後，在訂閱和廣告收入增長的推動下，我們的互聯健身業務增長了 34%。

Turning to gross margin. On a GAAP basis, we saw a 120 basis point decline to 44.2% in the first quarter. Excluding the restructuring, which contained about 60 basis points of inventory impacts, adjusted gross margin was 44.8%.

轉向毛利率。按公認會計原則計算，我們看到第一季度下降了 120 個基點至 44.2%。不包括包含約 60 個基點的庫存影響的重組，調整後的毛利率為 44.8%。

To walk through the components of the decline, adjusted gross margin was negatively impacted by approximately 130 basis points of channel mix due to a higher composition of off-price sales related to inventory management initiatives. This was partially offset by about 70 basis points of tailwinds from changes in foreign currency.

由於與庫存管理計劃相關的低價銷售構成較高，調整後的毛利率受到渠道組合約 130 個基點的負面影響。這被外幣變化帶來的約 70 個基點的順風部分抵消。

SG&A expense increased 3% to $515 million, driven by continued investments in our DTC, footwear and international businesses. Additionally, a meaningful amount of marketing expenses associated with our new Training campaign shifted into the second quarter.

由於對 DTC、鞋類和國際業務的持續投資，SG&A 費用增長 3% 至 5.15 億美元。此外，與我們新的培訓活動相關的大量營銷費用轉移到了第二季度。

First quarter operating loss was $29 million. Excluding the restructuring, adjusted operating income was $16 million.

第一季度經營虧損為 2900 萬美元。不計重組，調整後的營業收入為 1600 萬美元。

Interest and other expense was $5 million, which was better than expected due primarily to beneficial changes in foreign currency.

利息和其他費用為 500 萬美元，好於預期，主要是由於外幣的有利變化。

Turning to taxes. Our effective tax rate for the first quarter was approximately 12%. Excluding restructuring charges, the adjusted tax rate was approximately 93%. As a reminder, the weight of discrete international items recorded in certain foreign markets are particularly impactful to our effective tax rate in periods like the first quarter, which had smaller consolidated pretax income or loss levels.

轉向稅收。我們第一季度的有效稅率約為 12%。不計重組費用，調整後的稅率約為 93%。提醒一下，在某些外國市場記錄的離散國際項目的權重對我們在第一季度等時期的有效稅率影響特別大，第一季度的綜合稅前收入或虧損水平較小。

Taking this to the bottom line, net loss was $30 million or a $0.07 loss in diluted earnings per share for the first quarter. Excluding restructuring impacts, adjusted net income was approximately $1 million. And adjusted diluted EPS broke even.

考慮到這一點，第一季度的淨虧損為 3000 萬美元，即攤薄後每股收益虧損 0.07 美元。排除重組影響，調整後的淨收入約為 100 萬美元。調整後的攤薄每股收益收支平衡。

On our balance sheet, cash and cash equivalents were up 65% to $284 million. Total debt was up 1% to $921 million. Capital expenditures were down 46% to $35 million. And inventory was up 27% to $1.1 billion.

在我們的資產負債表上，現金和現金等價物增長了 65%，達到 2.84 億美元。總債務增長 1% 至 9.21 億美元。資本支出下降 46% 至 3500 萬美元。庫存增加 27% 至 11 億美元。

Relative to accounts receivable, which was up 28%, it is important to note that during the quarter we adopted ASC 606, a new revenue recognition standard. Due to this change, a large portion of reserves that were previously recorded to offset the gross accounts receivable are now being classified within other areas of the balance sheet. Without the accounting principles change in 2018, our accounts receivable for the first quarter would have declined 16% on a comparable basis.

相對於增長 28% 的應收賬款，值得注意的是，我們在本季度採用了新的收入確認標準 ASC 606。由於這一變化，以前為抵消應收賬款總額而記錄的大部分準備金現在被分類到資產負債表的其他領域。如果不改變 2018 年的會計準則，我們第一季度的應收賬款在可比基礎上將下降 16%。

With respect to full year 2018, we are reiterating the outlook provided on February 13.

關於 2018 年全年，我們重申 2 月 13 日提供的展望。

Before we turn it over to Q&A, I want to provide some color on the balance of the year. Based on factors previously discussed, we now expect second quarter revenue growth to be similar to the first quarter as we continue to execute against our inventory management initiatives. We expect all of our gross margin improvement to come in the back half of the year due to anticipated shifts in back half channel mix driven by a lower plan composition of off-price sales and higher DTC mix, coupled with continued product costing improvements.

在我們把它交給問答之前，我想為今年的餘額提供一些顏色。基於之前討論的因素，我們現在預計第二季度的收入增長將與第一季度相似，因為我們將繼續執行我們的庫存管理計劃。我們預計我們所有的毛利率都將在今年下半年實現，原因是由於折扣銷售的計劃構成降低和 DTC 組合增加，加上產品成本持續改進，預計後半渠道組合將發生變化。

We expect SG&A to be up at a low double-digit rate in the second quarter driven by the marketing shift I mentioned earlier, the efforts to support our global UA HOVR and Training campaigns and store expenses associated with the expansion of our international DTC.

我們預計，由於我之前提到的營銷轉變、支持我們的全球 UA HOVR 和培訓活動的努力以及與我們的國際 DTC 擴展相關的商店費用，SG&A 在第二季度將以兩位數的低速度增長。

In total, when taken in the context of the first half of 2018, SG&A should grow at a rate slightly higher than the rate of revenue growth.

總體而言，在 2018 年上半年的背景下，SG&A 的增長率應該略高於收入增長率。

Second quarter adjusted operating loss is expected to be approximately $30 million, and adjusted diluted EPS is expected to be a loss of $0.09 to $0.10.

第二季度調整後的經營虧損預計約為 3000 萬美元，調整後的攤薄後每股收益預計為 0.09 美元至 0.10 美元。

With respect to inventory. On our last call, we indicated that we thought our first half ending inventory would be consistent with our prior year-end inventory growth of 26%. Given our accelerated actions, we're now expecting inventory growth at the end of our second quarter to be up less than 20%, so better than our previous expectation, and then should move more in line with revenue growth by the end of the year.

關於庫存。在我們上次的電話會議上，我們表示我們認為我們的上半年期末庫存將與我們之前 26% 的年終庫存增長一致。鑑於我們加快行動，我們現在預計第二季度末的庫存增長將低於 20%，好於我們之前的預期，然後到年底應該更符合收入增長.

And as a reminder, we anticipate the majority of our restructuring charges to be recorded in the first half of 2018.

提醒一下，我們預計大部分重組費用將在 2018 年上半年記錄。

That concludes our prepared remarks. So with that, I'll turn it back to the operator for your questions. Operator?

我們準備好的發言到此結束。所以有了這個，我會把它轉回給接線員來回答你的問題。操作員？

(Operator Instructions) And our first question will come from the line of Matt McClintock with Barclays.

（操作員說明）我們的第一個問題將來自巴克萊銀行的 Matt McClintock。

Kevin, you started the conversation by saying Under Armour is a great brand, but a good company. And I was just wondering, what is your definition today of what a great company is, and how do we get Under Armour to that standard? And maybe help us think about the sequencing of that path over time given that 2018 is a hybrid year.

凱文，你開始談話時說安德瑪是一個偉大的品牌，但也是一家優秀的公司。我只是想知道，你今天對什麼是偉大公司的定義是什麼，我們如何讓 Under Armour 達到這個標準？鑑於 2018 年是一個混合年份，或許可以幫助我們思考隨著時間推移這條路徑的順序。

I think it's probably -- it's a 2-part answer, which is probably art and science, and so let me actually let Patrik kick it off and start with some of the science in what we're doing and then how we put all that together.

我認為這可能是——這是一個由兩部分組成的答案，可能是藝術和科學，所以讓我讓 Patrik 開始吧，從我們正在做的一些科學開始，然後我們如何把所有這些一起。

Yes. I think one of the big changes that I've talked about as I opened my script today has been around the structure in terms of how we think about category management, streamlining and really optimizing our entire organization to ensure that we're more agile, flexible and actually faster as well. The process that we've put in place as it relates to go-to-market has been dramatic for the company. You've seen some of that starting to come through in the HOVR campaign and our current Training campaign, which we're very, very satisfied with; how we're driving our S&OP to support our go-to-market; and also now through our innovation funnel that's tying into the go-to-market funnel, so driving more upstream in terms of future innovations that we're very, very excited about; and then, of course, being consumer-led. We've done a lot of work around the consumer, understanding the consumer from a global perspective, both the space that we're competing in, but also the consumer through our massive global consumer segmentation study of over 22,000 people around the world. And then editing and really amplifying, prioritizing, reallocating resources to the categories that we want to drive the most. And then just making sure that we're segmenting our product much better as well as we do that. And driving stronger financial discipline in everything that we do, thinking more around ROIC, making sure we're prioritizing investments, as I said, and becoming more EPS-driven as we go forward. All these things together, really driving a more holistic approach through the entire organization is what we believe is going to make us really great. I don't know if you want to add something to that, Kevin.

是的。我認為我今天打開腳本時談到的重大變化之一是圍繞我們如何看待品類管理、精簡和真正優化整個組織以確保我們更加敏捷的結構，靈活，實際上也更快。我們實施的與進入市場相關的流程對公司而言意義重大。您已經在 HOVR 活動和我們當前的培訓活動中看到了其中一些開始出現，我們對此非常非常滿意；我們如何推動 S&OP 以支持我們的上市；現在還通過我們與上市渠道相關聯的創新渠道，因此在我們非常非常興奮的未來創新方面推動更多上游；然後，當然，以消費者為主導。我們圍繞消費者做了很多工作，從全球角度了解消費者，包括我們競爭的空間，以及通過我們對全球超過 22,000 人進行的大規模全球消費者細分研究來了解消費者。然後編輯並真正擴大，優先考慮，將資源重新分配到我們最想推動的類別。然後只是確保我們在細分我們的產品時做得更好。並在我們所做的每件事中推動更嚴格的財務紀律，更多地考慮投資回報率，確保我們優先考慮投資，正如我所說的，並在我們前進的過程中變得更加註重每股收益。所有這些東西加在一起，真正推動整個組織採用更全面的方法，我們相信這將使我們變得真正偉大。凱文，我不知道你是否想添加一些東西。

Yes. I think as I closed my script, I used the words that we're playing a long game. And what's really important, I think, is for everyone to understand what it means, it's 23 years in business, 13 as a public company, and sort of the moment where we are today, there's a reason why in our industry there's only a couple or a few companies that have made it through this $5 billion level. It's because the force of nature, force of will that sort of gets you to this moment means that process and structure and systems are what must become a part of the way that we operate and how we do business. And that's why I wanted Patrik to kick that answer off. But I want you to know is that the DNA that got this brand to where it is today is something that's still very much a part of what and who we are. So when we say Under Armour is a great brand and a good company, it means that we just have so much runway of opportunity to be a much better company, and that's what we are focused on now. That's what 2017 was about and that's what's 2018 is about as well. We mentioned what we've brought to bear with the changes made in 2017 of standing up our category management structure that we have, which is a huge undertaking, implementing our new systems with SAP and then also what we've done with the addition of Patrik coming and help us to really work out and work through our go-to-market process. And so we're putting those pieces in place. As far as it relates to what the company is doing, where I'm focused as the CEO of the brand is something that -- the 4 pillars that really founded this company: product, story, service and team. They highlight and they lay out and architect, really, the structure that we're going to use to go forward for our strategy as a brand and as a company. We need to make better product. We just need to make the best product. That's what put Under Armour on the map and that's what we do today. But we need to make sure that it comes through at every touch point and places where we can be better like footwear. We see a massive opportunity there. And the good news is that we put the pieces in place, and the best news is that we have the team to execute on it. Our story is great, simple stories that come across explaining our product. Service is something that it was a push for us in 2017 because we'd reached a breaking point with our systems that we had to implement a new ERP system, and those are the kind of things which are Herculean in nature to take on, but once you have them in, you start seeing the progress and you see yourself getting better, which is why I say returning to making service a center of excellence for this company. And then, of course, as I just mentioned, the idea of team. These 4 things really define the strategy, literally define the strategy that we've laid out for our total company. And when I look and think how am I going to spend my time, and this is a long answer for what you asked, Matt, but I think it unlocks a bit of what we want to say is, number one, raising the product bar, making the best product in the world. That's what Under Armour is and that unique positioning of that every product does something is what gave us permission to be to begin with. Second is amplifying the brand, as we talked about, being a loud brand and a quiet company. We want to amplify the story of this brand to make sure people that heard us, and we don't think we were very loud in 2017. And so you will hear us tell our stories. And then, finally, my focus is on, A, the team, the team, the team. And best thing that I can do to build that team is ensure that we have the right culture here. So what you're seeing is this entire rebuild in this company of taking the best aspects that we have that allowed us to get to where we are today and amplifying those in the company that we intend to be. And I'm really proud of the team, what they've done, and I think this quarter's a great sentiment of us being -- putting our heads down, chopping wood and going to work. And you'll continue to see and feel that from us.

是的。我想當我結束我的劇本時，我用了我們正在玩一場漫長的遊戲的話。我認為真正重要的是讓每個人都明白這意味著什麼，這是從業 23 年，作為一家上市公司已經 13 年了，在我們今天所處的那個時刻，我們的行業中只有一對夫婦是有原因的或少數幾家公司已經通過這 50 億美元的水平。這是因為自然的力量，那種讓你走到現在的意志力意味著流程、結構和系統必須成為我們運營方式和開展業務方式的一部分。這就是為什麼我希望Patrik 開始回答這個問題。但我想讓你知道的是，讓這個品牌走到今天這一步的 DNA 仍然是我們的本質和身份的重要組成部分。因此，當我們說 Under Armour 是一個偉大的品牌和一家優秀的公司時，這意味著我們有很多機會成為一家更好的公司，而這正是我們現在所關注的。這就是 2017 年的意義所在，這也是 2018 年的意義所在。我們提到了我們在 2017 年所做的改變，即建立我們擁有的品類管理結構，這是一項艱鉅的任務，使用 SAP 實施我們的新系統，然後我們還通過添加Patrik 來幫助我們真正制定並完成我們的上市流程。所以我們正在把這些部分放在適當的位置。至於它與公司正在做什麼有關，作為品牌的首席執行官，我所關注的是——真正創立這家公司的 4 個支柱：產品、故事、服務和團隊。他們強調，他們佈局和架構，真的，我們將用來推進我們作為品牌和公司戰略的結構。我們需要做出更好的產品。我們只需要做出最好的產品。這就是讓 Under Armour 名聲大噪的原因，也是我們今天所做的。但我們需要確保它在每一個接觸點和我們可以做得更好的地方，比如鞋類。我們在那裡看到了巨大的機會。好消息是我們已經準備好了，最好的消息是我們有團隊來執行它。我們的故事很棒，簡單的故事可以用來解釋我們的產品。服務對我們來說是 2017 年的推動力，因為我們的系統已經達到了一個臨界點，我們必須實施一個新的 ERP 系統，而這些事情本質上是艱鉅的，但是一旦你把它們放進去，你就會開始看到進步，你會看到自己變得更好，這就是為什麼我說回到讓服務成為這家公司的卓越中心的原因。然後，當然，正如我剛才提到的，團隊的想法。這四件事真正定義了戰略，從字面上定義了我們為整個公司製定的戰略。當我思考並思考我將如何度過我的時間時，這是一個很長的回答你問的問題，馬特，但我認為它解開了我們想說的一點，第一，提高產品標準，製造世界上最好的產品。這就是 Under Armour 的意義所在，每件產品都發揮作用的獨特定位讓我們一開始就獲得了許可。其次是放大品牌，正如我們所說，成為一個響亮的品牌和一家安靜的公司。我們想放大這個品牌的故事，以確保人們聽到我們的聲音，我們認為我們在 2017 年的聲音不是很大。所以你會聽到我們講述我們的故事。然後，最後，我的重點是，A，團隊，團隊，團隊。我能做的最好的事情就是建立這個團隊，確保我們在這裡擁有正確的文化。因此，您所看到的是這家公司的整個重建過程，即利用我們擁有的最好的方面，使我們能夠達到今天的水平，並擴大我們打算成為的公司中的那些方面。我真的為這支球隊感到驕傲，他們所做的一切，我認為這個季度是我們的一個偉大的情感——低下頭，砍柴去工作。您將繼續從我們這裡看到並感受到這一點。

And the next question will come from the line of Randy Konik with Jefferies.

下一個問題將來自蘭迪·科尼克（Randy Konik）和傑富瑞（Jefferies）的觀點。

Just on the inventory, the up 27%, can you just give us a little bit of maybe perspective or insight on what the composition of that is and how much of it will go into an off-price channel or subject to markdown? And then relatedly, as you think about like SKU proliferation or reducing SKU count, do you think that being -- the higher SKU count was partly what led to the inventories being elevated? And when you think about some of these product wins with the HOVR, the Project Rock and the Curry 5, how do you think about amplifying the supply chain? Because these products are sold out either on your own website or in footlocker.com. So when you kind of think -- get these wins, how are you trying to figure out ways to amplify the supply chain and manufacturing capabilities to kind of get those products in a bigger scale out in the marketplace?

就庫存而言，上漲了 27%，您能否就庫存的構成以及其中有多少將進入折扣渠道或降價銷售給我們一些觀點或見解？然後相關地，當您考慮 SKU 擴散或減少 SKU 數量時，您是否認為存在 - 較高的 SKU 數量是導致庫存增加的部分原因？當你想到其中一些產品贏得了 HOVR、Project Rock 和 Curry 5 時，你如何看待擴大供應鏈？因為這些產品在您自己的網站或 footlocker.com 上都已售罄。所以當你想——獲得這些勝利時，你是如何想辦法擴大供應鍊和製造能力，以使這些產品在市場上更大規模地推廣？

Yes, Randy. This is Dave. Relative to inventory, we're not actually going to give the composition, but we talked a lot about the overhang that we have from late 2017 and we're clearly actively moving against that, especially in the first half of this year, and we're making a lot of progress there. We've got great partners that we work with on the off-price channel. And it's not just in North America, we're doing some things around the world, too, to make sure we spread it out in a brand-right way and really get after it and move forward to get cleaner towards the back half of the year. So you will see our inventory growth rates get more in check. We're doing more relative to how we're going to land Q2 on inventory growth, and again, I think as we get towards the back half and towards the end of the year, much more in line with revenue growth. So we would not expect to carry a lot of inventory or challenged inventory into '19 at all, and that's really one of our goals in '18. Relative to SKU count, I will let Patrik touch on that a little bit more. But obviously, every time there's less SKUs, that's more -- less locations in our DH, it's less product we have to order, so there's a lot of different puts and takes there. But generally, that's going to be a big benefit as well.

是的，蘭迪。這是戴夫。相對於庫存，我們實際上並沒有給出構成，但我們談論了很多關於我們從 2017 年底開始的過剩，我們顯然正在積極反對這一點，特別是在今年上半年，我們'在那裡取得了很大進展。我們在折扣渠道上擁有與我們合作的優秀合作夥伴。不僅在北美，我們也在世界各地做一些事情，以確保我們以正確的品牌方式傳播它，並真正得到它並向前推進，使後半部分變得更乾淨年。因此，您會看到我們的庫存增長率受到更多控制。我們在第二季度如何實現庫存增長方面做得更多，而且我認為隨著我們進入下半年和年底，更符合收入增長。因此，我們根本不會期望在 19 年攜帶大量庫存或受到挑戰的庫存，這確實是我們在 18 年的目標之一。相對於 SKU 數量，我會讓 Patrik 多談一點。但很明顯，每次 SKU 越少，我們的 DH 中的位置就越少，我們必須訂購的產品就越少，所以那裡有很多不同的放送和取放。但總的來說，這也將是一個很大的好處。

Yes. Randy, this is Patrik. So I think the SKU count is, of course, really important to us. We talked a lot about SKU count, but the reality is, of course, we're not just managing our SKU count down, we're also doing the same thing as it relates to materials, trims and all the other things that come with it. What it's actually enabling us to do is also be more specific about our segmentation. So it's actually helping our segmentation because we're now, and through our go-to-market, building into the line versus creating product and then trying assort it through the line. So we're being much more specific about the intent of every product that we have. We're also being much more specific about the amount of product that we're making. So your callout on HOVR being sold out, it's not necessarily a bad problem to have, right, and it's maybe not one that we've had so much of lately. But I think -- as we think about the future and future releases, the way that we dealt with the HOVR campaign -- first of all, it was our first totally digital campaign from a 360-degree perspective. It was global. And what's so encouraging for us is that the sell-throughs were similar across the world. In other words, it was a success wherever we launched the product. We're now building off that methodology and also that platform, to some extent, as it relates to HOVR, but we've also got other things coming down the pipeline. And that's now a new methodology for us also in terms of how we think about segmentation, segmenting the right product in the right channel and actually making the right amount of product for each product. So of course, the intent is not to always be sold out, but it's certainly part of the game here and the game plan. The long game is to really make sure that we're managing our franchises going forward as it relates not just apparel, which we have traditionally done fairly well, but also in footwear, and that's kind of new muscle for us. But we're learning fast and we're getting faster -- better much faster than we thought we would. And like Kevin usually says, we're the best at getting better and when -- we're going to be proving that out in terms of our footwear and apparel as it relates to the SKU maximization and efficiencies that we're building.

是的。蘭迪，這是帕特里克。所以我認為 SKU 數量當然對我們非常重要。我們談了很多關於 SKU 計數的問題，但現實是，當然，我們不僅在管理我們的 SKU 倒計時，我們還在做與材料、裝飾和所有其他相關事情相同的事情它。它實際上使我們能夠做的是更具體地細分我們的細分。所以它實際上有助於我們的細分，因為我們現在，通過我們的進入市場，建立生產線而不是創造產品，然後嘗試通過生產線對其進行分類。因此，我們對我們擁有的每種產品的意圖更加具體。我們也更具體地說明了我們正在生產的產品數量。因此，您對 HOVR 的標註已售罄，這不一定是一個壞問題，對，而且它可能不是我們最近遇到的問題。但我認為——當我們考慮未來和未來的版本時，我們處理 HOVR 活動的方式——首先，這是我們第一次從 360 度角度來看完全數字化的活動。這是全球性的。對我們來說如此令人鼓舞的是，世界各地的銷售情況相似。換句話說，無論我們在哪裡推出產品，它都是成功的。我們現在正在構建該方法和該平台，在某種程度上，它與 HOVR 相關，但我們還有其他事情正在醞釀中。現在，這對我們來說也是一種新的方法，就我們如何看待細分、在正確的渠道中細分正確的產品以及為每種產品實際生產正確數量的產品而言。因此，當然，其目的並不總是售罄，但這肯定是這裡游戲和遊戲計劃的一部分。長期的遊戲是要真正確保我們正在管理我們的特許經營權，因為它不僅涉及我們傳統上做得相當好的服裝，還涉及鞋類，這對我們來說是一種新的力量。但是我們學得很快，而且速度越來越快——比我們想像的要快得多。就像凱文通常所說的那樣，我們最擅長變得更好，而且我們將在我們的鞋類和服裝方面證明這一點，因為這與我們正在建立的 SKU 最大化和效率有關。

And does SKU count have to come down equally between footwear and apparel? Or is one category being more distorted versus the other in terms of getting more focused on the SKU count side? And can HOVR be more or less like the company's boost moment, if you will? Like do you see this technology and the style that you're seeing resonating with the consumer as an opportunity to kind of scale it out more to more kind of align with the technology and utilizing the design that's been, I guess, a success in the marketplace to kind of go forward with the footwear franchise?

鞋類和服裝之間的 SKU 數量是否必須同樣下降？或者在更加關注 SKU 計數方面，一個類別比另一個類別更扭曲？如果你願意的話，HOVR 能或多或少像公司的提振時刻嗎？您是否認為這項技術和您所看到的與消費者產生共鳴的風格是一個機會，可以將其擴大到更多地與技術保持一致，並利用我猜想，成功的設計鞋類專營權的發展？

Yes. We think HOVR is definitely a really important platform for us. We also have Charged and Micro G, 2 other platforms. And we now have 3 strong platforms, we believe, in our tool bag, in our tool kit. We believe we can continue to build on HOVR. You've just seen the first iterations of HOVR. We have some really exciting stuff coming down the pipeline. But we're being very, very careful and deliberate in terms of how we think about that going forward. So yes, we believe it's a strong platform, it's resonating with the consumer. Functionally, performance-wise, it's outstanding. We'll continue to build on it, and we believe it has lots of runway and lots of legs in terms of what we can do with it. So it's certainly one of the platforms. I also talked about the innovation pipeline. We have very exciting things coming down the line also to complement HOVR going forward, so we're very excited. But that, I guess, is one way to look at it, it's one of the new strong platforms in footwear for Under Armour going forward.

是的。我們認為 HOVR 對我們來說絕對是一個非常重要的平台。我們還有 Charged 和 Micro G，以及其他 2 個平台。我們現在有 3 個強大的平台，我們相信，在我們的工具包中，在我們的工具包中。我們相信我們可以繼續在 HOVR 上發展。您剛剛看到了 HOVR 的第一次迭代。我們有一些非常令人興奮的東西即將推出。但就我們對未來的看法而言，我們非常非常謹慎和深思熟慮。所以是的，我們相信它是一個強大的平台，它會引起消費者的共鳴。在功能上，性能方面，它非常出色。我們將繼續在它的基礎上發展，我們相信它有很多跑道和很多腿，就我們可以用它做些什麼而言。所以它肯定是平台之一。我還談到了創新管道。我們還有非常令人興奮的事情即將到來，以補充 HOVR 的發展，所以我們非常興奮。但我想，這是看待它的一種方式，它是 Under Armour 未來鞋類新的強大平台之一。

And the next question will come from the line of Omar Saad with Evercore ISI.

下一個問題將來自與 Evercore ISI 的 Omar Saad。

Good progress, guys. Kevin, I was hoping you could maybe talk a little bit about the evolution of the brand and how consumers perceive it and the strategy around the brand positioning, especially as you kind of go through the transition on the business side, maybe where the brand's coming from and where you'd like it to go in the marketplace. Keeping in mind, maybe address style versus performance, fashion versus performance as you think about the strategy for the brand specifically? Patrik, maybe you have something to add as well?

進展順利，伙計們。凱文，我希望你能談談品牌的演變以及消費者如何看待它以及圍繞品牌定位的戰略，特別是當你在業務方面經歷轉型時，也許品牌的未來您希望它在市場上的位置和位置。請記住，當您專門考慮品牌戰略時，也許會解決風格與性能，時尚與性能？ Patrik，也許你還有什麼要補充的？

Yes. Thanks, Omar, and good to catch up. And I really enjoy this opportunity to just explain to people sort of where we are. When you look at the continuum of the journey of this company, we're really fortunate about our moment in time because every company has to evolve saying you're a small company, you're a midsized company becoming a large business. And we spent a long time as a small company that can compete and use that as an advantage. And then we became a big company that, net-net with others in our industry, are a smaller big company. So we have to create the centers of excellence that give us the ability to compete in a different way, and that means everything from our global scale to our product engine, to creating go-to-market process to, frankly, the partners that we do business with. And where you find us right now when you talk about the evolution from performance of what it means to be where the market is today, where it is much more broader and open as to the sports style aptitude the consumer is looking for, we can answer that. Sports style isn't a place or lifestyle isn't a place, it's just everything that you do. And so the evolution for our company isn't one thing that you -- anyone would want us to point at, it's just everything of who we are and how we create product. When I think of where we're going now, we've heard a lot of conversation around our product pipeline and our innovation pipeline. I just want to be clear that innovation is like the core of this company. When I talked about the 2 components of what gives Under Armour the reason to be, I said number one is that every product that we make does something. That's a unique positioning that's very different than other brands. It means when you pick it up, if it's Under Armour, it better be special. What makes it Under Armour is not just the logo on it, it's the fact that the consumer will ask the question of, if it's Under Armour, what's it do. The second thing is that -- when you look in our categories is that our competitors have done a really good job and they have captured hearts and minds of consumers globally. And there's not just a lot of brands that are positioned to do that. And so take the first point of everything doing something and take the second point with the fact that we can do it from a credible basis of the fact that we are authentic. Our brand was born on field. We understand the athlete, and what you're hearing from us say today is our focus with what we're doing with the demand-centric growth and really dialing ourselves into, living at the hearts and souls and minds of every consumer that we want to do business with. That was our switch to category management of now having 9 distinct leaders that are focused on these categories. That will make a difference with staying as close to consumers as possible. So building ourselves with that, and then building product that is relevant and makes sense for them is something that we are highly, highly motivated to doing. And then watching it come out and watching the go-to-market calendar come together and watching all these touch points to be able to express themselves is an incredibly powerful, powerful place for this brand to be. So we're fortunate to have the size and scale of a $5 billion business that, as you can see, is stabilized. And what we're doing now is now we're getting really good. We're going to build muscle, we're going to get strong and you're going to watch us grow. And the way that we're going to define growth in the short term is going to be growth in the bottom line. And how we're focused on becoming a really good business is that we are not concerned with how do we grow the top line today, we're focused on how do we become an incredibly profitable company that is delivering the best products for our consumer, delivering them great value at the same time. So we are hyper-focused on that. And as we get strong, you'll continue to watch us march forward. And the good news, we're doing this in a way that's pretty balanced.

是的。謝謝，奧馬爾，很高興趕上。我真的很享受這個機會來向人們解釋我們在哪裡。當你看到這家公司的連續發展歷程時，我們真的很幸運，因為每家公司都必鬚髮展，說你是一家小公司，你是一家中型公司，成為一家大型企業。我們花了很長時間作為一家可以競爭並將其作為優勢的小公司。然後我們變成了一家大公司，與我們行業中的其他人一起網絡，是一家規模較小的大公司。因此，我們必須創建卓越中心，讓我們能夠以不同的方式進行競爭，這意味著從我們的全球規模到我們的產品引擎，再到創建進入市場的流程，坦率地說，我們的合作夥伴做生意。當您談論從性能演變到今天市場的意義時，您現在在哪裡找到我們，在消費者正在尋找的運動風格能力方面更加廣泛和開放，我們可以回答那。運動風格不是一個地方或生活方式不是一個地方，它只是你所做的一切。因此，我們公司的發展與您無關——任何人都希望我們指出，這只是我們是誰以及我們如何創造產品的一切。當我想到我們現在要去的地方時，我們聽到了很多關於我們的產品管道和創新管道的對話。我只想明確一點，創新就像這家公司的核心。當我談到讓 Under Armour 存在的兩個組成部分時，我說第一個是我們製造的每件產品都有所作為。這是一個與其他品牌截然不同的獨特定位。這意味著當你拿起它時，如果它是安德瑪，最好是特別的。是什麼讓 Under Armour 不僅僅是它上面的標誌，而是消費者會問這樣一個問題：如果是 Under Armour，它是做什麼的。第二件事是——當你查看我們的類別時，我們的競爭對手做得非常好，他們已經俘獲了全球消費者的心。不僅有很多品牌可以做到這一點。因此，將所有事情的第一點放在做某事的事情上，然後將第二點放在我們可以從我們是真實的事實的可信基礎上做到這一點的事實中。我們的品牌誕生於球場。我們了解運動員，您今天從我們那裡聽到的是，我們專注於我們正在做的以需求為中心的增長，並真正讓自己融入，生活在我們想要的每一位消費者的心靈和心靈中做生意。那是我們轉向類別管理的轉變，現在有 9 位不同的領導者專注於這些類別。這將對盡可能貼近消費者產生影響。因此，以此構建我們自己，然後構建與他們相關且對他們有意義的產品，這是我們非常非常有動力去做的事情。然後看著它出來，看著上市日曆匯集在一起，看著所有這些接觸點能夠表達自己，這對這個品牌來說是一個非常強大、強大的地方。因此，我們很幸運擁有 50 億美元業務的規模和規模，正如您所看到的，它已經穩定下來。我們現在正在做的是現在我們變得非常好。我們要鍛煉肌肉，我們要變得強壯，你要看著我們成長。我們定義短期增長的方式將是底線的增長。我們專注於成為一家真正優秀的企業的方式是，我們並不關心我們今天如何增加收入，我們專注於如何成為一家利潤豐厚的公司，為我們的消費者提供最好的產品，同時為它們帶來巨大的價值。所以我們非常關注這一點。隨著我們變得強大，您將繼續看著我們前進。好消息是，我們正在以一種非常平衡的方式來做這件事。

Yes, I think something that should give you some confidence, I guess, Omar, is if you think about the HOVR campaign that we just launched a few months ago, that was launched without any specific asset or athlete per se, or persona, right? It was launched in digital, it was launched endemic, it was launched as a performance product targeted at a specific end consumer. And with a tone of voice at every touch point, with a great buildup, and when we did release it, it sold through. So yes, of course, we have been too quiet. We believe we're now ramping up and becoming a louder brand and a more quiet company. And in doing so, when we do have the right product, the right style and when we communicate it with the right story, the consumer is there for us. I see it also with the Project Rock that we have just launched recently, that's basically sold out across the world. In that case, we're also able to do it with the right asset. Or with Curry, that's really working well for us, both the Curry 4, the Curry 5 that we're releasing as well as looking forward into this year -- later in this year with Curry 6. So we're able to do both. So we built this new muscle now in the company that we're starting to really be able to drive harder. And like Kevin says, the performance aspect of this brand, which might be looked upon as a bit of a weakness for us at this point in time in the marketplace, we believe is going to be our longest-term strength, if you like.

是的，我認為應該給你一些信心，我想，奧馬爾，如果你想想我們幾個月前剛剛推出的 HOVR 活動，它是在沒有任何特定資產或運動員本身或角色的情況下推出的，對吧?它以數字形式推出，它是地方性推出的，它是作為針對特定最終消費者的性能產品推出的。並且在每個接觸點都有一種語氣，有很大的積累，當我們發布它時，它就賣完了。所以是的，當然，我們太安靜了。我們相信我們現在正在加速發展，成為一個更響亮的品牌和一家更安靜的公司。在這樣做的過程中，當我們確實擁有正確的產品、正確的風格，並且當我們用正確的故事來傳達它時，消費者就會在我們身邊。我在我們最近推出的 Project Rock 中也看到了這一點，它基本上在全球範圍內售罄。在這種情況下，我們也可以使用正確的資產來做到這一點。或者對於 Curry，這對我們來說真的很有效，無論是 Curry 4，我們發布的 Curry 5 以及我們期待在今年晚些時候發布的 Curry 6。所以我們能夠做到這兩點.所以我們現在在公司建立了這種新的力量，我們開始真正能夠更加努力地駕駛。就像凱文所說的那樣，這個品牌的性能方面，在市場上這個時間點對我們來說可能被視為一個弱點，我們相信這將是我們長期的優勢，如果你願意的話。

And your next question comes from the line of Edward Yruma with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Edward Yruma。

Kevin, you talked a lot about becoming a louder brand. I guess, how should we expect you to kind of articulate the stories of Under Armour? Should we expect this loudness to kind of be in tandem with innovation that you launch? And I guess, are there particular channels that you think are effectively -- that are most effective in this environment? And then maybe one other follow-up. There's, on the balance sheet, a customer refund liability. Is that tied to the accounting change?

凱文，你談了很多關於成為一個響亮的品牌。我想，我們應該如何期望您能夠清晰地闡述 Under Armour 的故事？我們是否應該期望這種響度與您推出的創新同步？我想，有沒有你認為有效的特定渠道——在這種環境下最有效？然後也許是另一個後續行動。資產負債表上有客戶退款責任。這與會計變更有關嗎？

Yes, I think being a loud brand, it's not about a big campaign, it's not about a signing. It's about great products. Everything that we do, when we make great products, we win. When we get behind something, we win. So what you saw, and I don't want to run it ad nauseam, but you've heard us talk about HOVR and the success that we've seen there. That's a first step. But that first step began with it's a terrific product that, at first glance, it is something the consumer wants to buy and wants to wear and put on their foot. The good news is that it also engages. It's got a terrific fit to it as well as it's got incredible performance from the step-in cushion comfort and feel that you feel in the shoe and also the fact that it's connected in a part of our 230-million person ecosystem that we have with Connected Fitness. So it's really the trifecta of style, performance and fit that come together that allow us to become a louder brand when that happens. At the same time, we want to continue to press on that pipeline of innovation. We want to make sure that our customers are winning with unique and segmented product. And if there's anything I want you take off of this call, it's our focus on segmenting our line to ensure that each and every distribution partner or channel that we're in is something that's unique and positioned with the right product, the right price, the right time for the consumer. So we feel like we've made great strides in making that happen beyond just being -- launching product into the market in the spring and in the fall, but truly becoming a company that is channel-specific and more importantly, customer-specific with differentiated product. Now again, we've heard a lot of -- I just want to be clear, and this is an opportunity for us to get to speak a little bit about what we see out there, so from our product pipeline, we are incredibly intrigued and enthused about the products we have coming down like the expansion you'll see and feel with HOVR. We also are very excited about the partners we're doing business with today. Our goal is never to trade distribution or to trade partners. We want everybody to grow. And that means creating platforms, as Patrik said, like HOVR, like Charged, like Micro G that we have, of differentiating our partners by the end use as well as what the correct and proper price point is. And so we're very proud of the partnerships we have in place. We have the right amount of distribution. And we intend and expect to amplify each and every one of those customers to make them great. DICK'S Sporting Goods is going to be great with Under Armour in their stores and we'll be stronger with it. And we've got a number of other partners in the same thing that we look to do in the mall channel, the same thing in every channel we're doing business. So we're not adding any new channels at this time, we just look to make everywhere we're doing business now, we want to amplify it, we want to amplify the story, and the way we're going to do that is with terrific product at a fair and reasonable price for the consumer that gives them something that they never -- thought they never knew they needed, and then once they have it, wonder how they ever lived without it.

是的，我認為作為一個響亮的品牌，這不是一場大型活動，也不是簽約。這是關於偉大的產品。我們所做的一切，當我們製造出偉大的產品時，我們就贏了。當我們落後於某些東西時，我們就贏了。所以你所看到的，我不想讓它噁心，但你已經聽到我們談論 HOVR 以及我們在那裡看到的成功。這是第一步。但第一步始於它是一款了不起的產品，乍一看，它是消費者想要購買、想要穿上和穿上的東西。好消息是它也參與其中。它非常適合它，並且它具有令人難以置信的性能，包括踏入式緩衝墊的舒適性和您在鞋中的感覺，以及它與我們擁有的 2.3 億人生態系統的一部分相關聯的事實連接健身。因此，真正將風格、性能和合身性三者結合在一起，使我們能夠在這種情況下成為一個響亮的品牌。與此同時，我們希望繼續推進創新渠道。我們希望確保我們的客戶以獨特和細分的產品取勝。如果有什麼我想讓你從這個電話中解脫出來，我們的重點是細分我們的產品線，以確保我們所在的每一個分銷合作夥伴或渠道都是獨一無二的，並以合適的產品、合適的價格定位，適合消費者的時間。因此，我們覺得我們在實現這一目標方面取得了長足的進步，不僅僅是在春季和秋季將產品推向市場，而是真正成為一家專注於渠道，更重要的是，專注於客戶的公司差異化產品。再說一次，我們聽到了很多——我只想說清楚，這是一個讓我們談談我們所看到的東西的機會，所以從我們的產品線來看，我們非常感興趣並對我們推出的產品充滿熱情，例如您將在 HOVR 中看到和感受到的擴展。我們也對今天與我們開展業務的合作夥伴感到非常興奮。我們的目標絕不是貿易分銷或貿易夥伴。我們希望每個人都能成長。正如 Patrik 所說，這意味著創建平台，如 HOVR、Charged、Micro G，通過最終用途以及正確和適當的價格點來區分我們的合作夥伴。因此，我們為我們現有的合作夥伴關係感到非常自豪。我們有適量的分配。我們打算並期望擴大每一位客戶，使他們變得更好。 DICK'S Sporting Goods 將在 Under Armour 的商店中大放異彩，我們將變得更強大。我們有許多其他合作夥伴，我們希望在商城渠道做同樣的事情，在我們開展業務的每個渠道中做同樣的事情。因此，我們目前不會添加任何新渠道，我們只是希望在我們現在開展業務的任何地方進行製作，我們想要放大它，我們想要放大故事，我們要做的方式是以公平合理的價格為消費者提供了極好的產品，為他們提供了他們從未想過的東西——他們認為他們永遠不知道自己需要，然後一旦他們擁有它，就會想知道沒有它他們是如何生活的。

And Edward, this is Dave. On the second part of your question relative to the customer refund liability, you are correct, that's just an accounting standard change that we had to implement in Q1 of '18, that's ASC 606. So not really any business change of any kind there, it's just a reclassification in 2018 and going forward. So we adopted that prospectively. So that used to be an amount relative to returns reserve, et cetera, that used to net down gross accounts receivable. And so you wouldn't actually see that individual amount, it would be in the net AR in 2017. And then prospectively with the new accounting rule change, we're showing that separately in 2018 and going forward.

還有愛德華，這是戴夫。關於您與客戶退款責任相關的問題的第二部分，您是對的，這只是我們必須在 18 年第一季度實施的會計準則變更，即 ASC 606。因此，實際上並沒有任何類型的業務變更，這只是 2018 年的重新分類並繼續前進。所以我們前瞻性地採用了這一點。因此，這曾經是一個相對於退貨準備金等的金額，用於扣除應收賬款總額。所以你實際上不會看到那個單獨的金額，它會在 2017 年出現在淨 AR 中。然後隨著新會計規則的變化，我們將在 2018 年和未來單獨顯示。

And the next question comes from the line of Jim Duffy with Stifel.

下一個問題來自 Jim Duffy 和 Stifel 的台詞。

The commentary around the inventory expectations is encouraging. If we look at the composition of the gross margin compression we've seen over the last few years and year-to-date, for that matter, it's been a function of liquidation. As inventories better match with demand, how do you guys see the prospects for gross margin recapture? Is it unreasonable to think that gross margin could get back into the high 40s as supply is better matched with demand?

圍繞庫存預期的評論令人鼓舞。如果我們看看我們在過去幾年和年初至今看到的毛利率壓縮的構成，就此而言，它是清算的一個函數。隨著庫存更好地與需求相匹配，你們如何看待毛利率奪回的前景？認為隨著供應與需求更好地匹配，毛利率可以回到 40 多歲的高位是不合理的嗎？

Jim, this is Dave. It's a good callout, and I think you'll see just as you play out our gross margin outlook for this year, obviously, in Q1, it was more pressured as we're moving forward on dealing with some of that overhanging inventory, and we're going to be doing some of that again in Q2. And then in the back half of the year is where you see our gross margin improvements because you're not going to see as much of a large year-over-year composition of the off-price channel as we get healthier there. And then, obviously, the plan would be that as we move into 2019 and beyond, we're going to be healthier from an inventory perspective and from an excess creation perspective relative to all of the go-to-market and supply chain initiatives that we're working on that Patrik mentioned and the supply chain team is working on as well. So we are excited about '19 and beyond, we're not going to get into that level of detail right now. But between supply chain changes and how we're getting tighter on the buys, coupled with continued costing improvements that the supply chain is driving through with our vendor base, we're definitely excited about '19 and beyond and we'll look forward to speaking more to that more at Investor Day towards the end of the year.

吉姆，這是戴夫。這是一個很好的標註，我想你會看到就像你展示我們今年的毛利率前景一樣，顯然，在第一季度，隨著我們繼續處理一些懸垂的庫存，它的壓力更大，並且我們將在第二季度再次這樣做。然後在今年下半年，您會看到我們的毛利率有所提高，因為隨著我們在那裡變得更健康，您不會看到折扣渠道的同比大幅增長。然後，很明顯，我們的計劃是，隨著我們進入 2019 年及以後，從庫存的角度和相對於所有上市和供應鏈計劃的過剩創造的角度來看，我們將變得更加健康我們正在研究 Patrik 提到的那個，供應鏈團隊也在努力。所以我們對 19 年及以後感到興奮，我們現在不打算深入到那個級別的細節。但是在供應鏈的變化和我們如何收緊採購之間，再加上供應鏈正在與我們的供應商群一起推動的持續成本改進，我們對 19 年及以後肯定感到興奮，我們期待著在年底的投資者日上更多地談論這一點。

Great. And then a follow-up on that. With the SKU management and the tightening of lead times, that also suggests working capital as a source of cash. Dave, any thoughts on cash flow opportunity from tightening the working capital management?

偉大的。然後對此進行跟進。隨著 SKU 管理和交貨時間的收緊，這也表明營運資金是一種現金來源。戴夫，您對收緊營運資金管理帶來的現金流機會有何想法？

Yes, great question and definitely one that we are much more focused on now and going forward. This year, 2018, is still going to be a little bit of a fight as we're dealing through the restructuring charges and the fact that probably about 80% of those restructuring charges are cash related. But as we get into '19 and beyond, when you do think about tighter inventory management and you think about not having the cash impact of restructuring charges, in addition to heightened focus across the company on working capital management and CapEx prioritization, you should see meaningful improvements there. And we're driving that through from a longer-term free cash flow improvement, but also longer-term and even more focus on ROIC improvement.

是的，很好的問題，絕對是我們現在和未來更加關注的問題。今年，也就是 2018 年，由於我們正在處理重組費用，而且這些重組費用中可能大約 80% 與現金相關，這一事實仍將是一場激烈的鬥爭。但隨著我們進入 19 年及以後，當您確實考慮更嚴格的庫存管理並且您考慮不產生重組費用的現金影響時，除了全公司對營運資金管理和資本支出優先級的高度關注之外，您應該看到那裡有意義的改進。我們正在通過更長期的自由現金流改善來推動這一點，但也更長期地關注投資回報率的改善。

And our next question will come from the line of Jonathan Komp with Baird.

我們的下一個問題將來自 Jonathan Komp 和 Baird。

Dave, first, I want to just clarify a couple of things on the guidance. Q2 for gross margin, I know Q1 was down just under 60 basis points year-over-year. How do you expect Q2 to trend relative to that? Will it be down that much, or any thoughts there? And then I know previously you talked about SG&A growth being front half weighted for the year. Assuming that's still the case, could you just walk through some of the puts and takes, first half versus second half?

戴夫，首先，我想澄清一些關於指導的事情。第二季度的毛利率，我知道第一季度同比下降了不到 60 個基點。你預計第二季度的趨勢如何？它會下降那麼多，還是有什麼想法？然後我知道你之前談到 SG&A 增長是今年的前半部分。假設情況仍然如此，你能簡單地瀏覽一下上半場和下半場的一些看跌期權嗎？

Yes, I mean, on gross margin, we didn't give specific guidance to Q2. There'll still be some pressures in Q2 as we continue to deal with the inventory management initiatives to get us cleaner going into the back half of the year, so you'll still see some of that pressure in Q2. And then when you think about the back half of the year, we're definitely going to have the lower year-over-year North America off-price sales in back half, which is going to help year-over-year margins in the back half. Also the improved costing is really going to be kicking in. So we talked about that a little bit on the last call and also a little bit towards the end of last year, but a lot of those initiatives that the supply chain is driving through and working with our vendors, consolidating vendors, increasing volume, working on better costing transparency with our vendors, a lot of those initiatives you're going to start to see those come to light in the actual inventory being received in those purchase orders for the back half of this year. So that's going to help a little bit as a tailwind in back half of this year. And then you'll see some smaller benefits relative to regional mix with North America and Asia Pac, and then also DTC mix will be a little bit higher back half of this year versus '17 as well. So a couple different things going in our favor in the back half that are going to help out with that gross margin.

是的，我的意思是，在毛利率方面，我們沒有對第二季度給出具體指導。第二季度仍然會有一些壓力，因為我們將繼續處理庫存管理計劃，讓我們在下半年變得更清潔，所以你仍然會在第二季度看到一些壓力。然後，當您考慮今年下半年時，我們肯定會在下半年獲得較低的北美折扣銷售量，這將有助於後半部分。此外，成本核算的改善確實會發揮作用。所以我們在上次電話會議上談到了一點，在去年年底也談了一點，但是供應鏈正在推動的許多舉措和與我們的供應商合作，整合供應商，增加數量，與我們的供應商合作提高成本透明度，您將開始看到這些舉措在這些採購訂單中收到的實際庫存中顯現出來今年的一半。因此，這將有助於今年下半年的順風。然後你會看到相對於北美和亞太地區的區域組合的一些較小的好處，然後與 17 年相比，今年下半年的 DTC 組合也會略高一些。因此，後半部分對我們有利的一些不同的事情將有助於提高毛利率。

And maybe just to clarify that point, Dave. I know if you assume revenue growth close to Q1, SG&A up low double digits, it's hard to embed a lot greater pressure on gross margin than you saw in Q1 and may be even less, so I just wanted to make sure the arithmetic around that was clear.

也許只是為了澄清這一點，戴夫。我知道如果你假設收入增長接近第一季度，SG&A 達到兩位數的低位，那麼很難給毛利率帶來比第一季度更大的壓力，甚至可能更小，所以我只是想確定一下算術很清楚。

Yes, Jonathan, that's fair. You probably won't see as much pressure on gross margin in Q2 as you did see in Q1. So that's fair.

是的，喬納森，這很公平。第二季度的毛利率可能不會像第一季度那樣大。所以這是公平的。

Okay, great. And then just a broader question as you talk about shifting the focus near term to improving the bottom line. I know previously you talked about getting SG&A below 40% from a percentage of sales basis, and that would get you back at least to a mid-single-digit operating margin, if you can achieve that piece. But how do you think aspirationally over time what type of margin is fair for this business? You don't have to commit to a time line, but just curious how you think about the overall opportunity.

好，太棒了。然後是一個更廣泛的問題，因為您談到近期將重點轉移到改善底線。我知道你之前談到過讓 SG&A 佔銷售額百分比低於 40%，如果你能做到這一點，那至少會讓你恢復到中個位數的營業利潤率。但是，隨著時間的推移，您如何理想地認為哪種類型的利潤對這項業務來說是公平的？您不必承諾時間線，而只是好奇您如何看待整體機會。

Yes, I mean, I think we're going to be looking at it more as a longer-term play from a CAGR perspective. We are going to be looking to continue to find ways to leverage SG&A and take advantage of a lot of the restructuring benefits from the '17 and '18 plans that we'll see in '19 and beyond. So we're not ready to really discuss the details on that or time line on that, but we are excited to be able to talk about that in Investor Day later in the year. But again, when you think about the combined impact of what Patrik's driving from a GTM perspective and therefore an effectiveness perspective, and you couple that with the benefits of the restructuring activities and digging deep and trying to reset the cost structure, we're going to be pretty excited about what we can share towards the end of the year.

是的，我的意思是，我認為從復合年增長率的角度來看，我們將把它更多地視為一個長期的遊戲。我們將繼續尋找利用 SG&A 的方法，並利用我們將在 19 年及以後看到的 17 年和 18 年計劃中的許多重組優勢。所以我們還沒有準備好真正討論那個細節或時間表，但我們很高興能夠在今年晚些時候的投資者日討論這個問題。但是再一次，當您從 GTM 的角度考慮 Patrik 的驅動因素以及效率的角度所產生的綜合影響，並將其與重組活動和深入挖掘並嘗試重置成本結構的好處相結合，我們將對我們可以在年底分享的內容感到非常興奮。

That does conclude the question-and-answer session. I would now like to turn the call back over to Mr. Kevin Plank for any closing remarks.

這確實結束了問答環節。我現在想將電話轉回給凱文·普朗克先生，以發表任何結束語。

Yes, thank you, operator. We spent a long time defining ourselves as a growth company, and I want to be clear that, that definition is no different today. I explained that we want growth in the bottom line so we can show you and demonstrate how great of a company that we can be. But it doesn't take anything away from the opportunity and the runway we see in front of ourselves as we do play the long game with what's in front of us. I just want to take a minute and I want to thank our team that has demonstrated such incredible strength and resilience going back now nearly 18 months. So we've been in this thing and we've been in the fight and I'm incredibly proud of the hard work and the effort that they put through. And I think you're seeing it come out in days like today where we get to have a very proud explanation of where our company is, and more importantly, where we're going. So we're in this fight, we look forward to it and we appreciate your support. Thanks very much.

是的，謝謝你，接線員。我們花了很長時間將自己定義為一家成長型公司，我想明確一點，這個定義在今天也沒有什麼不同。我解釋說，我們希望盈利增長，這樣我們就可以向您展示並證明我們可以成為一家多麼偉大的公司。但這並沒有從我們面前看到的機會和跑道上帶走任何東西，因為我們確實在與我們面前的東西進行長期的比賽。我只想花一點時間，我要感謝我們的團隊，他們在近 18 個月前表現出如此令人難以置信的力量和韌性。所以我們一直在做這件事，我們一直在戰鬥，我為他們付出的辛勤工作和努力感到無比自豪。而且我認為你會看到它在像今天這樣的日子裡出現，我們可以非常自豪地解釋我們公司的位置，更重要的是，我們要去哪裡。所以我們在這場戰鬥中，我們期待著它，我們感謝您的支持。非常感謝。

Ladies and gentlemen, thank you for participating in today's conference. This concludes your program. You may all disconnect. Everyone, have a great day.

女士們，先生們，感謝你們參加今天的會議。您的程序到此結束。你們都可以斷開連接。大家，有一個美好的一天。