Under Armour Inc (UA) 2023 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Under Armour Second Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加安德瑪 2023 財年第二季度收益電話會議。 （操作員說明）

I would now like to hand the conference over to your speaker today, Lance Allega, Senior Vice President, Investor Relations and Corporate Development. Please go ahead.

我現在想把會議交給你今天的演講者，投資者關係和企業發展高級副總裁 Lance Allega。請繼續。

Thank you. Good morning, and welcome to Under Armour's Second Quarter fiscal 2023 Earnings Conference Call. Today's event is being recorded for replay. Joining us on today's call will be Under Armour's Executive Chair; and Brand Chief Kevin Plank; Interim President and CEO, Colin Browne; and CFO, David Bergman.

謝謝你。早上好，歡迎參加安德瑪 2023 財年第二季度財報電話會議。正在錄製今天的事件以供重播。加入我們今天電話會議的將是 Under Armour 的執行主席；和品牌總監凱文·普朗克；臨時總裁兼首席執行官科林·布朗；和首席財務官大衛伯格曼。

Our remarks today include forward-looking statements that reflect Under Armour management's current view and certain forecast elements of our business as of November 3, 2022. Statements made and are subject to risks and other uncertainties detailed in documents regularly filed with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Today's discussion also includes the use of non-GAAP references. Under Armour believes these measures provide investors with a useful perspective on the underlying business trends. These measures are reconciled to the most comparable U.S. GAAP measures, a reconciliation of which, along with other certain information, can be found as a morning's press release on our website at about.underarmour.com. With that, I will turn the call over to Kevin.

我們今天的評論包括前瞻性陳述，這些陳述反映了 Under Armour 管理層的當前觀點以及截至 2022 年 11 月 3 日我們業務的某些預測要素。所做的陳述受到定期提交給 SEC 的文件中詳述的風險和其他不確定性的影響，包括我們的10-K 表格年度報告和 10-Q 表格季度報告。今天的討論還包括使用非 GAAP 參考。 Under Armour 認為，這些措施為投資者提供了有關潛在業務趨勢的有用視角。這些措施與最具可比性的美國公認會計原則措施進行了核對，可以在我們的網站 about.underarmour.com 上的上午新聞稿中找到對這些措施的核對以及其他某些信息。有了這個，我會把電話轉給凱文。

Thank you, Lance, and good morning, everyone. I'll start with a brief update on our CEO search and that we remain on track to announce our permanent leadership before the year's end. I want to thank our Board for their incredible engagement in this process and a special thanks to Colin for his strong, steady and thoughtful leadership throughout as he is, of course, a serious candidate.

謝謝你，蘭斯，大家早上好。我將首先簡要介紹一下我們的 CEO 搜索情況，並且我們將繼續按計劃在年底前宣布我們的永久領導地位。我要感謝我們的董事會在此過程中的出色參與，並特別感謝 Colin 在整個過程中的強大、穩定和周到的領導，因為他當然是一個認真的候選人。

Now on to the call. 17 years into our life as a public company, we have learned, experience, evolved as an organization, we're operating in a complicated and uncertain time for every industry, including ours. Still beyond the macro factors we all face, it's a pivotal time for Under Armour. We will not miss the opportunity to reposition and establish our sector leadership wherever we choose to compete. But that starts with knowing where we are today.

現在開始通話。作為一家上市公司，在我們的 17 年中，我們已經學習、經歷、發展成為一個組織，我們在每個行業（包括我們的行業）的複雜和不確定的時期運營。除了我們都面臨的宏觀因素之外，現在是 Under Armour 的關鍵時刻。我們不會錯過重新定位和建立行業領導地位的機會，無論我們選擇在哪裡競爭。但首先要知道我們今天在哪裡。

Our eyes are wide open, and we know exactly where we are, how others see us, where we're positioned and specifically what we need to do to drive more love for the Under Armour brand. A company, let alone a brand is a constant work in progress, and we've made great progress toward that broader love in just the last 6 months, and our momentum is building.

我們的眼睛睜得大大的，我們確切地知道自己在哪裡，別人如何看待我們，我們所處的位置，特別是我們需要做些什麼來激發對 Under Armour 品牌的更多熱愛。一家公司，更不用說一個品牌，是一項不斷發展的工作，在過去的 6 個月裡，我們在實現更廣泛的愛方面取得了長足的進步，而且我們的勢頭正在增強。

We are evolving our strategy to address the near to midterm environment by leaning into our strength as we pivot to growth. Protecting our house through continued operational discipline and investing in growth initiatives to capitalize on the upside potential we know is there for the taking. This will require a problem solving, innovative products for athletes delivered with designs that combine clean aesthetics with cultural style, brought to life through epic storytelling and meeting our consumers where they choose to transact with us, all the while driving quality top and bottom-line growth over the long term.

我們正在發展我們的戰略，通過在我們轉向增長時依靠我們的力量來應對近期到中期的環境。通過持續的運營紀律和投資增長計劃來保護我們的房子，以利用我們所知道的上升潛力。這將需要為運動員提供解決問題的創新產品，其設計將乾淨的美學與文化風格相結合，通過史詩般的故事講述和滿足我們的消費者選擇與我們進行交易的方式賦予生命，同時推動質量的頂線和底線長期增長。

And we believe UA is the brand most perfectly positioned to drive thought leadership among young athletes. Why? Because we're globally recognized authentic on-field, on-court, and on-pitch performance brand, one of only a handful who has this credibility. From Bryce Harper, bringing the Phillies back to the World Series to Stephen Curry, who picked up his fourth ring just a few weeks ago, while running new Curry 10 built with Under Armour Flow cushioning technology. Trent Alexander-Arnold, the English Premier League, to our recent signing of reigning WNBA World Champion, Kelsey Plum of the Las Vegas Aces to Dwayne The Rock Johnson, our roster has some of the greatest ambassadors in the world.

我們相信 UA 是最適合推動年輕運動員思想領導力的品牌。為什麼？因為我們是全球公認的真正的場上、場上和球場上的表演品牌，是少數擁有這種信譽的品牌之一。從布萊斯·哈珀（Bryce Harper）帶領費城人隊重返世界大賽，再到斯蒂芬·庫裡（Stephen Curry），他在幾週前拿到了他的第四枚戒指，同時運行著採用 Under Armour Flow 緩震技術打造的全新 Curry 10。特倫特·亞歷山大-阿諾德，英超聯賽，我們最近簽下了衛冕 WNBA 世界冠軍，拉斯維加斯王牌隊的凱爾西·普拉姆到巨石強森，我們的名單擁有一些世界上最偉大的大使。

And to be sure, we have work to do. Yet that work is already in motion with Colin at the helm. While he will get into greater detail in a few minutes, these are some of the highlights that Colin and the team have accomplished over just the last 90 days, including refining our target audience to 16- to 20-year old young athletes and how we'll strive to connect even more deeply with them, accelerating our product and operating rhythm by opening the aperture of our brand and product line to now include Live in addition to train, compete and recover, which means providing gear to cover all 24 hours of a young athletes life while considerably expanding the addressable market size that we can attack.

可以肯定的是，我們還有工作要做。然而，在 Colin 的帶領下，這項工作已經在進行中。雖然他將在幾分鐘後詳細介紹，但這些是 Colin 和團隊在過去 90 天內完成的一些亮點，包括將我們的目標受眾細化為 16 至 20 歲的年輕運動員，以及我們如何'將努力與他們建立更深入的聯繫，通過打開我們的品牌和產品線的窗口來加快我們的產品和運營節奏，現在除了訓練、比賽和恢復之外還包括 Live，這意味著提供涵蓋所有 24 小時的裝備年輕運動員的生活，同時大大擴大了我們可以攻擊的潛在市場規模。

A terrific example of what we mean by this new approach is this week's launch of the future of training footwear, UA SlipSpeed, pure performance versatile footwear and what you can continue to expect from Under Armour, energy, excitement and innovation delivered with cultural relevance. Products athletes never knew they needed and once they've tried them, can't imagine living without.

我們所說的這種新方法的一個很好的例子是本週推出的訓練鞋的未來，UA SlipSpeed，純性能多功能鞋，以及您可以繼續從 Under Armour 中獲得的、充滿活力、興奮和創新的文化相關性。運動員從不知道他們需要產品，一旦他們嘗試過，就無法想像沒有這些產品。

And finally, recognizing that in the product world of good, better and best, we allowed the pendulum to swing too far, creating an overemphasis on good level products. So, we're amplifying our efforts to ignite significantly more better and best level products, while never compromising the operating efficiencies we've gained over the last several years.

最後，認識到在好、更好和最好的產品世界中，我們讓鐘擺擺動得太遠，造成了對優質產品的過分強調。因此，我們正在加大努力，以推出更多更好、更高水平的產品，同時絕不會損害我們在過去幾年中獲得的運營效率。

These are just a few of the things I'm excited about. At the core, it's about our moving forward, one great product at a time and one great story about that product at a time and all the while ensuring we are delivering our product to consumers in a relevant, inspiring and efficient way, maximizing our opportunities for growing UA's top and bottom line. Make no mistake, we are leaning forward to growth. Our product pipeline is full. We are in this fight, and we're well positioned to grow, and we're going to win.

這些只是我感到興奮的一些事情。核心是關於我們的前進，一次一個偉大的產品，一次一個關於該產品的偉大故事，同時確保我們以一種相關、鼓舞人心和有效的方式向消費者提供我們的產品，最大限度地利用我們的機會用於增長 UA 的收入和利潤。毫無疑問，我們正朝著增長的方向前進。我們的產品管線已滿。我們在這場戰鬥中，我們已經做好了成長的準備，我們會贏。

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

有了這個，我會把它交給科林。

Thank you, Kevin, and good morning, everyone. I'll start by underscoring that amid a highly challenging retail environment, we're pleased that we were able to deliver second quarter results that were in line with our expectations. This demonstrates our team's ability to operate through near-term volatility, staying focused on execution and delivering the world's best sports performance products.

謝謝你，凱文，大家早上好。我首先要強調的是，在極具挑戰性的零售環境中，我們很高興能夠提供符合我們預期的第二季度業績。這表明我們的團隊有能力在短期波動中運作，專注於執行並提供世界上最好的運動性能產品。

As we navigate this environment, we are working to amplify opportunities for our existing core business while laying the groundwork to accelerate broader product considerations for more pronounced growth in the years to come. Essential to this effort is ensuring we keep athletes at the center of everything we do and ensuring we continue our strong operational discipline. I want to stress that again. This is an and, and not an or, we are taking action to empower our ability to deliver the growth we know we're capable of over the long term and protecting our brand as we scale.

在我們駕馭這種環境的同時，我們正在努力擴大現有核心業務的機會，同時為加快更廣泛的產品考慮以在未來幾年實現更顯著的增長奠定基礎。這項工作的關鍵是確保我們將運動員置於我們所做的一切的中心，並確保我們繼續我們強有力的運營紀律。我想再次強調這一點。這是一個和，而不是一個或，我們正在採取行動，以增強我們實現我們知道我們能夠長期實現的增長的能力，並在我們擴大規模時保護我們的品牌。

As we strengthen our foundation and architect our evolving path forward, our growth strategies are focused on product, story, digitalization and culture.

隨著我們鞏固基礎並構建我們不斷發展的前進道路，我們的增長戰略將重點放在產品、故事、數字化和文化上。

I'll start with product. It's at the core of our DNA and what inspires and drives athletic performance. Under Armour's promise to athletes is to make them better to provide them with performance solutions they didn't know they needed and once they have them, cannot imagine living without. We are at our best when we empower those who strive for more. To equip athletes on the journey is a privilege, we honor and respect. We love athletes.

我將從產品開始。它是我們 DNA 的核心，也是激發和推動運動表現的因素。 Under Armour 對運動員的承諾是讓他們更好地為他們提供他們不知道自己需要的性能解決方案，一旦他們擁有它們，就無法想像沒有這些解決方案。當我們賦予那些追求更多的人權力時，我們處於最佳狀態。在旅途中為運動員提供裝備是一種特權，我們感到榮幸和尊重。我們喜歡運動員。

Expecting to reach nearly $6 billion in revenue this year, we've done an incredible job at building an iconic brand. Still, as we continue to fine-tune our strategy, there are areas we are good at and areas that we must address more effectively to realize our full potential. In this respect, I'll highlight 2 refinements we've made to strengthen our long-term growth strategy.

預計今年的收入將達到近 60 億美元，我們在打造標誌性品牌方面做得非常出色。儘管如此，隨著我們繼續微調我們的戰略，有些領域是我們擅長的，也是我們必須更有效地解決的領域，以充分發揮我們的潛力。在這方面，我將重點介紹我們為加強長期增長戰略所做的兩項改進。

First, the foundational underpinnings of our unique brand are strong, and unmistakably present in the products and how we connect with athletes. Yet as we observe meaningful changes in the market dynamics and consumer behavior over the past few years, it was clear that our consumer-centric strategy needs to evolve. Consequently, we have refined our target audience, which is now centered on the 16- to 20-year-old teen sport athlete. This definitive group personifies our brand attitude and Lives at the intersection of multigenerational influence from pushing the boundaries of what's possible in sports, to seamlessly blending fitness, music and street culture.

首先，我們獨特品牌的基礎是強大的，並且明確地體現在產品以及我們與運動員的聯繫方式中。然而，隨著我們觀察到過去幾年市場動態和消費者行為發生了有意義的變化，我們以消費者為中心的戰略顯然需要發展。因此，我們細化了目標受眾，現在以 16 至 20 歲的青少年體育運動員為中心。這個權威群體體現了我們的品牌態度和生活在多代人影響的交匯處，從推動運動可能的界限，到無縫融合健身、音樂和街頭文化。

This target audience will allow us to bring our product and storytelling into sharper intensity across the entire athlete experience, influencing the larger target market. This brings us to our second refinement. As Kevin alluded to, broadening our product aperture, driven by insights, we are working to outfit occasions beyond the fields, courts and gyms, so we cover young athletes entire day. Still, we won't stray from our unique performance DNA that every product must do something. Under Armour's versatility and consideration will spend an athletes closet by encapsulating magical fabrics with premium beautiful and fresh designs. Adding Live, to our train, compete and recover construct nearly triples our total addressable market to around $300 billion.

這些目標受眾將使我們能夠在整個運動員體驗中將我們的產品和講故事的強度提高到更高的強度，從而影響更大的目標市場。這給我們帶來了第二個改進。正如 Kevin 所提到的，在洞察力的推動下擴大我們的產品範圍，我們正在努力為場地、球場和體育館之外的場合提供裝備，因此我們全天為年輕運動員提供服務。儘管如此，我們不會偏離我們獨特的性能 DNA，即每件產品都必須做某事。 Under Armour 的多功能性和考慮將通過將神奇的面料與優質美麗和新鮮的設計封裝在一起，成為運動員衣櫥。將 Live 添加到我們的火車、競爭和恢復結構中，我們的總潛在市場幾乎增加了三倍，達到約 3000 億美元。

Our Live strategy has already begun to manifest itself in fiscal '23, and we expect it will show up even more significantly in fiscal '24 with expanded product offerings and experiences to balance all parts of an athlete day.

我們的 Live 戰略已經開始在 '23 財年體現出來，我們預計它將在 '24 財年更顯著地體現出來，擴大產品供應和體驗，以平衡運動員日的所有部分。

Within product, another area we're digging into is segmentation. While we've done a solid job of building good and better level products, we have opportunities to do more with our best level offerings. As we look to fiscal '24 and beyond, we are working to elevate the premium aspects of our brand and product portfolio with a greater focus on better and best products to drive growth in key areas such as footwear, women's and international. This should also contribute to our ability to drive more significant gross margin expansion over time. We've also barely scratched the surface on exclusives and collaborations. So we believe there is a flywheel opportunity with these offerings to drive improved brand consideration and loyalty.

在產品中，我們正在研究的另一個領域是細分。雖然我們在構建優質和更好級別的產品方面做得很紮實，但我們有機會利用我們最好的級別產品做更多的事情。隨著我們展望 24 財年及以後，我們正在努力提升我們品牌和產品組合的優質方面，更加關注更好和最好的產品，以推動鞋類、女裝和國際等關鍵領域的增長。這也應該有助於我們隨著時間的推移推動更顯著的毛利率擴張。我們也幾乎沒有觸及獨家和合作的表面。因此，我們相信這些產品有一個飛輪的機會來推動提高品牌考慮和忠誠度。

On our last call, we teased a new footwear platform discovered through athlete insights. Three days ago, we had our initial limited launch of the $150 under Armour SlipSpeed, the world's most versatile training shoe and a perfect example of what's widening our aperture while building best level product means. SlipSpeed has a molded convertible heel so that the athlete can wear speed mode with the help for training or switch over to the heel down slip mode for recovery. This new trainer uses our award-winning Flow cushioning and BOA Precisional system, which enables a unique lockdown fit. This is part of a 6 feature set, which includes being machine washable.

在我們的最後一次電話會議上，我們取笑了一個通過運動員洞察發現的新鞋類平台。三天前，我們在 Armour SlipSpeed 下首次限量推出了 150 美元，這是世界上用途最廣泛的訓練鞋，也是在打造最佳產品水平的同時擴大我們的視野的完美例子。 SlipSpeed 具有模製可轉換鞋跟，因此運動員可以在訓練的幫助下穿上速度模式或切換到腳跟向下滑動模式以進行恢復。這款新教練使用我們屢獲殊榮的 Flow 緩沖和 BOA Precision 系統，可實現獨特的鎖定貼合。這是 6 項功能集的一部分，其中包括可機洗。

Since Monday, we've sold out on ua.com with limited peers still available in our North American brand houses and at DICK'S Sporting Goods. This was a prequel to our broader launch plan for Valentine's Day in February when a full assortment of colors will be offered. Even more exciting, this is just the start of a larger platform we are looking to leverage into other categories in the future.

自周一以來，我們在 ua.com 上的產品已售罄，我們的北美品牌店和 DICK'S Sporting Goods 仍有有限的同類產品。這是我們 2 月情人節更廣泛推出計劃的前傳，屆時將提供各種顏色。更令人興奮的是，這只是我們希望在未來利用到其他類別的更大平台的開始。

Now let's move to our second strategic focus, which is story. Telling great stories is the most powerful means to influence and inspire. This connection between athletes, passion and performance drives us to do what we do. It's at the core of building consumer relationships, inspiring them and welcoming them into our family. Our recent SlipSpeed launch is an excellent example of what you can expect from us moving forward, where the ingredients of innovative product, authentic athletes and cultural relevance build the story. Pure performance and versatile footwear combined with Under Armour NIL athletes in an authentic setting doing what they do best and engaging the artist logic to develop the sound for SlipSpeed.

現在讓我們轉向我們的第二個戰略重點，即故事。講述偉大的故事是影響和激發靈感的最有力手段。運動員、激情和表現之間的這種聯繫促使我們做我們所做的事情。它是建立消費者關係、激勵他們並歡迎他們加入我們家庭的核心。我們最近推出的 SlipSpeed 是您對我們前進的期望的一個很好的例子，其中創新產品的成分、真正的運動員和文化相關性構成了故事。純粹的性能和多功能鞋與 Under Armour NIL 運動員在真實的環境中做他們最擅長的事情，並利用藝術家的邏輯為 SlipSpeed 開發聲音。

This demonstrates how we see -- how we are going to market in the future. Through combined social channels, we've generated millions of positive brand impressions in just 7 days. A great example of what can happen when we combine terrific product, story and execution.

這展示了我們如何看待——我們未來將如何進入市場。通過綜合社交渠道，我們在短短 7 天內就產生了數百萬次積極的品牌印象。當我們結合出色的產品、故事和執行時會發生什麼的一個很好的例子。

Our third strategic focus is digitalization and driving a premium frictionless experience as consumers engage our brand across their journey. Insights and benchmarking have helped inform where we're doing well and where we have work to do. To address these opportunities, we're investing in mobile speed, brand and storytelling, SEO site search and loyalty. This is grounded in improving the user experience, further strengthening the Under Armour brand. From finding our product quickly to telling inspirational stories with cutting-edge visuals to product specs and data, the frictionless cart building and checkout routines evolving this ecosystem is crucial to how we intend to unlock more significant ROI in the future.

我們的第三個戰略重點是數字化並在消費者在整個旅程中參與我們的品牌時推動優質的無摩擦體驗。洞察力和基準測試幫助我們了解了我們在哪些方面做得很好以及我們在哪些方面還有工作要做。為了抓住這些機會，我們正在投資於移動速度、品牌和故事講述、SEO 網站搜索和忠誠度。這是基於改善用戶體驗，進一步強化 Under Armour 品牌。從快速找到我們的產品到用前沿的視覺效果講述鼓舞人心的故事，再到產品規格和數據，推動這個生態系統的無摩擦購物車構建和結賬程序對於我們打算如何在未來解鎖更顯著的投資回報率至關重要。

We are also committed to delivering premium retail experiences in our physical doors, both full price and outlet, where we are investing in order management and point-of-sale systems and advancing our endless aisle and buy online pick up in store capabilities.

我們還致力於在我們的實體門店提供優質的零售體驗，包括全價和奧特萊斯，我們正在投資訂單管理和銷售點系統，並推進我們無盡的過道和在線購買店內提貨能力。

With more work still to come, we are beginning to see the benefit of these investments with solid e-commerce growth in the second quarter, particularly in our largest North American market, momentum we expect to continue for the balance of the year.

由於還有更多工作要做，我們開始看到這些投資在第二季度的穩健電子商務增長中受益，特別是在我們最大的北美市場，我們預計這一勢頭將持續到今年餘下時間。

Further, in the second quarter, we began testing in select markets, our first-ever North America loyalty program, UA Rewards. Members can join for free to earn points for gearing up and working out. Points will be redeemable for rewards, including exclusive athlete experiences and our latest gear. They will also be able to access member-only perks, including special events, promotions and expert training shifts and birthday rewards. Only a few weeks into the pilot phase, we are encouraged by the results and the initial learnings are helping us refine this essential offering for our consumers. We expect to roll this out more broadly in 2023.

此外，在第二季度，我們開始在特定市場測試我們的首個北美忠誠度計劃 UA Rewards。會員可以免費加入以賺取積分以進行鍛煉和鍛煉。積分可兌換獎勵，包括獨家運動員體驗和我們最新的裝備。他們還可以享受會員專屬福利，包括特殊活動、促銷和專家培訓輪班以及生日獎勵。進入試點階段僅幾週，我們就對結果感到鼓舞，最初的學習正在幫助我們為消費者改進這一重要產品。我們預計將在 2023 年更廣泛地推出這項服務。

And finally, this takes us to our fourth focus culture, which makes Under Armour unique. We've worked hard to cultivate our identity and how our family is defined. When an athlete wears the UA logo, when they run our flag, it represents something different. It's grip. It's determination. It signals when they step into the gym, onto the field, court or track they put in the work, will perform at their best and earn the swagger that are Under Armour athletes have in common.

最後，這將我們帶到了我們的第四個焦點文化，這使得 Under Armour 獨一無二。我們一直在努力培養我們的身份以及我們的家庭是如何定義的。當運動員佩戴 UA 標誌時，當他們揮舞我們的旗幟時，它代表著不同的東西。是抓地力。是決心。當他們踏入健身房、進入他們投入工作的場地、球場或跑道時，它發出信號，他們將發揮最佳表現並贏得安德瑪運動員共同擁有的昂首闊步。

This culture starts with the thousands of teammates who work daily to make this the best athletic performance brand in the world. Our talented team is more efficient, effective and inclusive than ever. Our discipline, agility and powerful playbook remains critical advantages for both the near-term environment and the longer-term opportunities before us.

這種文化始於成千上萬的隊友，他們每天都在努力使這個品牌成為世界上最好的運動表現品牌。我們才華橫溢的團隊比以往任何時候都更加高效、有效和包容。我們的紀律、敏捷性和強大的劇本對於近期環境和擺在我們面前的長期機會來說仍然是關鍵優勢。

Now pivoting back to our plan, playing both offense and defense is critical in this environment. It's not yet clear how prolonged these conditions may persist. However, elevated inventories, including late-arriving products across our sector, higher levels of discounting and promotions and softer retail trends have impacted how we see the rest of fiscal '23 playing out.

現在回到我們的計劃，在這種環境下，攻守兼備是至關重要的。目前尚不清楚這些情況會持續多久。然而，庫存增加，包括整個行業的遲到產品、更高水平的折扣和促銷活動以及疲軟的零售趨勢，影響了我們對 23 財年剩餘時間的看法。

Based on these factors, we've revised our full year outlook. At the top line, we expect revenue to increase at a low single-digit rate. This revision is related to softer retail trends, particularly in North America, along with additional FX headwinds. Even so, we're holding the line on the gross margin outlook, which reflects our measured approach to maintaining brand health.

基於這些因素，我們修訂了全年展望。最重要的是，我們預計收入將以低個位數的速度增長。這一修訂與疲軟的零售趨勢有關，尤其是在北美，以及額外的外匯逆風。即便如此，我們仍堅持毛利率前景，這反映了我們維護品牌健康的衡量方法。

We are also being vigilant with SG&A, which we now expect to be slightly down as we prioritize investments towards areas with the highest returns and actively managing expenses.

我們也對 SG&A 保持警惕，由於我們將投資重點放在回報率最高的領域並積極管理費用，我們現在預計會略有下降。

Taking it to the bottom line, our full year operating income and EPS outlooks have also been revised slightly. Additionally, we remain in a strong cash position, and we are proud of our inventory management. The last 2 years have had us in a defensive position concerning inventory but also left us with more out of stock than optimal to service our business. As inventory approach is a more appropriate level for our size, and with the composition of this inventory being mostly current and not aged, we feel confident in how we are managing this aspect of our business.

把它歸結為底線，我們的全年營業收入和每股收益前景也略有修正。此外，我們仍保持強勁的現金狀況，我們為我們的庫存管理感到自豪。在過去的 2 年中，我們在庫存方面處於防御狀態，但也使我們的庫存不足，而不是為我們的業務提供最佳服務。由於庫存方法更適合我們的規模，而且庫存的構成大多是最新的且未老化，我們對如何管理這方面的業務充滿信心。

And finally, before transitioning today, I want to highlight a significant event that occurred during the second quarter. In September, we published our new sustainability and impact report from how we create our products to our workplace interaction with suppliers and key relationships with stakeholders worldwide. We are proud of this work. With this strategy in place, the next phase of our journey has begun, and I'm inspired every day by the work our team is doing to reach our targets while being transparent about our progress and challenges.

最後，在今天過渡之前，我想強調第二季度發生的一件重大事件。 9 月，我們發布了新的可持續發展和影響報告，從我們如何創建產品到我們與供應商的工作場所互動以及與全球利益相關者的關鍵關係。我們為這項工作感到自豪。有了這個戰略，我們旅程的下一階段就開始了，我每天都被我們團隊為實現目標所做的工作所鼓舞，同時對我們的進展和挑戰保持透明。

This is a strengthening step in our long-term commitment to run a more sustainable business and like our report title states, what's under matters.

這是我們長期致力於經營更可持續的業務的一個加強步驟，就像我們的報告標題所述，重要的是什麼。

In closing, as we navigate this dynamic near-term environment, I'm emboldened by the opportunities to continue fine-tuning our strategy and laying the groundwork for Under Armour's next chapter. We are in this fight, and I am confident that by leveraging our strengths, product innovation deep consumer connection and Under Armour's unique culture, we will create better value for our shareholders through more robust profitable growth over the long term.

最後，在我們駕馭這一充滿活力的近期環境時，我有機會繼續微調我們的戰略並為 Under Armour 的下一章奠定基礎，這讓我感到鼓舞。我們在這場鬥爭中，我相信通過利用我們的優勢、產品創新與消費者的深厚聯繫和安德瑪獨特的文化，我們將通過長期更強勁的盈利增長為我們的股東創造更好的價值。

Now I'll hand the call over to Dave.

現在我將把電話交給戴夫。

Thanks, Colin. At the halfway point of fiscal 2023, our second quarter results demonstrate that our operational execution has not wavered amid an uneven global market. Despite several developing factors during the quarter, we protected our house and stayed disciplined, allowing us to deliver results aligned with our outlook. As a reminder, due to our fiscal year change, our second quarter of fiscal 2023 ending September 30 is comparable to the third quarter of fiscal 2021.

謝謝，科林。在 2023 財年中期，我們的第二季度業績表明，在全球市場不平衡的情況下，我們的運營執行並未動搖。儘管本季度有幾個發展因素，我們保護了我們的房子並保持紀律，使我們能夠提供與我們的前景一致的結果。提醒一下，由於我們的財年變化，我們截至 9 月 30 日的 2023 財年第二季度與 2021 財年第三季度相當。

Diving right in, our second quarter revenue was up 2% to $1.6 billion compared to the prior year. Excluding the negative impact of foreign currency, revenue was up 5%. As discussed on our last earnings call, this result includes approximately 5 points of headwinds from proactive reductions and cancellations that we made late last year and early this year due to COVID-19-related supply chain constraints.

與去年同期相比，我們第二季度的收入增長了 2%，達到 16 億美元。剔除外彙的負面影響，收入增長 5%。正如我們在上次財報電話會議上所討論的那樣，由於與 COVID-19 相關的供應鏈限制，我們去年底和今年年初主動減少和取消了大約 5 個逆風。

On a regional basis, North American revenue declined by 2% coming in at just over $1 billion for the quarter, with wholesale down slightly due primarily to the proactive order reductions and cancellations previously noted. In North American DTC, a solid performance in our e-commerce business was offset by declines in our Factory House stores as late-arriving inventory and a challenging retail environment tempered sales.

從地區來看，本季度北美收入下降 2%，略高於 10 億美元，批發業務略有下降，這主要是由於之前提到的主動訂單減少和取消。在北美 DTC，我們的電子商務業務的穩健表現被我們的 Factory House 商店的下降所抵消，因為遲到的庫存和充滿挑戰的零售環境抑制了銷售。

EMEA was a standout again for us this quarter, with revenue up 9% to $263 million or up 20% on a currency-neutral basis. This was driven by growth in our wholesale business partially offset by a decline in our DTC business. Following logistical challenges in the first quarter, positive operational progress helped us better serve strong demand.

本季度歐洲、中東和非洲地區再次成為我們的佼佼者，收入增長 9% 至 2.63 億美元，在貨幣中性的基礎上增長 20%。這是由我們批發業務的增長推動的，部分被我們的 DTC 業務的下降所抵消。繼第一季度的後勤挑戰之後，積極的運營進展幫助我們更好地滿足強勁的需求。

APAC revenue was up 7% to $226 million or up 14% on a currency-neutral basis. Despite ongoing COVID challenges and a relatively muted economic recovery in China, we saw growth in all channels, led by our Southern APAC markets.

亞太地區收入增長 7% 至 2.26 億美元，在貨幣中性的基礎上增長 14%。儘管中國面臨持續的 COVID 挑戰和相對緩慢的經濟復甦，但我們看到了所有渠道的增長，其中以南亞太市場為主導。

And finally, our Latin America business was up 3% to $58 million in the quarter or up 4% on a currency-neutral basis. From a channel perspective, wholesale revenue was up 4% to $948 million, with increases in our distributor business, partially offset by lower sales to the full price and off-price channels.

最後，我們的拉丁美洲業務在本季度增長了 3% 至 5800 萬美元，在貨幣中性的基礎上增長了 4%。從渠道角度來看，批發收入增長 4% 至 9.48 億美元，我們的分銷商業務增長，部分被全價和低價渠道的銷售額下降所抵消。

Direct-to-consumer revenue declined 4% to $577 million due to declines in our Factory and Brand House stores, partially offset by a 4% increase in our e-commerce business. And licensing revenue increased 7% in the quarter to $33 million, driven by a solid performance from our North American business.

直接面向消費者的收入下降 4%，至 5.77 億美元，原因是我們的 Factory 和 Brand House 商店下降，部分被我們的電子商務業務增長 4% 所抵消。由於我們北美業務的穩健表現，本季度的許可收入增長了 7% 至 3300 萬美元。

By product type, in a challenging retail environment, our apparel business was down 2%, with strength in Team Sports offset by softness in training. However, we did see strength in Rival Fleece across all channels. And in our women's business, we continue to see momentum in Infinity Bras and Meridian Leggings and it was also a strong sell-through of unstoppable pants in our men's business in the quarter.

按產品類型劃分，在充滿挑戰的零售環境中，我們的服裝業務下降了 2%，團隊運動的優勢被訓練的疲軟所抵消。然而，我們確實在所有渠道中看到了 Rival Fleece 的實力。在我們的女性業務中，我們繼續看到 Infinity Bras 和 Meridian Leggings 的勢頭，這也是本季度男性業務中不可阻擋的褲子的強勁銷售。

In footwear, revenue was up 14%, with positive results in all categories, led by significant strength in Team Sports with outstanding performances from Curry and Jet and Basketball, Spotlight RM and Highlight Cleats in American football, and Harper Cleats in baseball. Additionally, we saw double-digit increases in our outdoor and training categories.

在鞋類方面，收入增長 14%，所有類別均取得積極成果，其中團隊運動的顯著實力領先，其中 Curry 和 Jet 和籃球、美式足球中的 Spotlight RM 和 Highlight Cleats 以及棒球中的 Harper Cleats 表現出色。此外，我們的戶外和訓練類別也出現了兩位數的增長。

Our momentum in footwear, which we expect to continue for the balance of the year is encouraging proof that our innovation is resonating.

我們預計今年餘下時間將繼續在鞋類方面的發展勢頭令人鼓舞，證明我們的創新正在引起共鳴。

And finally, our accessories business was down 12% due mainly to planned lower sales of our SPORTSMASK compared to last year, taking SPORTSMASK out of the comparison, accessories were up at a low single-digit rate in the quarter. In line with our expectations, gross margin was down 560 basis points during the second quarter, driven by approximately 300 basis points from higher promotions and discounting, 100 basis points of supply chain impact mainly due to elevated freight costs, 70 basis points of various unfavorable channel impacts, 50 basis points of negative effects from changes in foreign currency; and finally, about 30 basis points of unfavorable product mix due to the strength of footwear sales.

最後，我們的配件業務下降了 12%，主要是由於與去年相比，我們的 SPORTSMASK 計劃銷售額下降，將 SPORTSMASK 排除在比較之外，配件在本季度以低個位數的速度增長。與我們的預期一致，第二季度毛利率下降了 560 個基點，主要受促銷和折扣增加約 300 個基點的推動，供應鏈影響 100 個基點，主要是由於運費上漲，各種不利因素影響 70 個基點渠道影響，50個基點的外匯變動負面影響；最後，由於鞋類銷售強勁，產品組合不利約 30 個基點。

In the second quarter, SG&A expenses were down 1% to $594 million. This decrease was primarily due to lower marketing expenses as we normalize against our elevated spending in the first half of calendar 2022, partially offset by a $10 million legal expense related to ongoing litigation matters.

第二季度，SG&A 費用下降 1% 至 5.94 億美元。這一下降主要是由於營銷費用降低，因為我們在 2022 年上半年增加的支出正常化，部分被與正在進行的訴訟事項相關的 1000 萬美元法律費用所抵消。

In total, our marketing expense in the second quarter was 9% of revenue. Next, operating income was $119 million. Excluding the previously mentioned legal expense, adjusted operating income was $129 million, which was above our outlook of $105 million to $115 million, primarily driven by lower than planned SG&A expenses.

總的來說，我們第二季度的營銷費用佔收入的 9%。其次，營業收入為 1.19 億美元。不包括前面提到的法律費用，調整後的營業收入為 1.29 億美元，高於我們預期的 1.05 億美元至 1.15 億美元，主要是由於 SG&A 費用低於計劃。

After tax, we realized a net income of $87 million or $0.19 of diluted earnings per share. Our adjusted net income was $92 million, yielding $0.20 of adjusted diluted earnings per share coming in above our outlook of $0.15 to $0.17 for the second quarter.

稅後，我們實現了 8700 萬美元的淨收入或每股攤薄收益 0.19 美元。我們調整後的淨收入為 9200 萬美元，調整後的每股攤薄收益為 0.20 美元，高於我們對第二季度 0.15 美元至 0.17 美元的預期。

Moving to the balance sheet. At the end of the second quarter, our inventory was up 29% to $1.1 billion. As a reminder, our comparisons are against leaner inventory levels in 2021 when we ran a proactive constrained model. As supply chain deliveries continue to rebalance from recent disruptions, we expect elevated inventory growth rates over the next few quarters with a peak in the high 40s coming in our current third quarter and then closing out our fiscal year in the mid-30% growth range.

轉移到資產負債表。在第二季度末，我們的庫存增加了 29% 至 11 億美元。提醒一下，我們的比較是針對 2021 年我們運行主動約束模型時的精簡庫存水平。隨著供應鏈交付繼續從最近的中斷中重新平衡，我們預計未來幾個季度的庫存增長率將上升，在我們當前的第三季度達到 40 多歲的峰值，然後在 30% 的中期增長范圍內結束我們的財政年度.

Looking at this from a different angle, going back and comparing it to pre-COVID 2019 would put both our estimated 3-year inventory and revenue growth rate up about 19%, further demonstrating our inventory management strength in this environment.

從另一個角度來看，回過頭來看它與 2019 年之前的情況相比，我們估計的 3 年庫存和收入增長率都將增長約 19%，進一步展示了我們在這種環境下的庫存管理實力。

Rounding out the quarter, our cash and cash equivalents were $854 million, and we had no borrowings under our $1.1 billion revolving credit facility. And finally, we repurchased $25 million of Class C common stock during the second quarter, thus retiring 3.2 million previously outstanding shares. Under our 2-year $500 million program, we have repurchased $350 million worth of Class C stock, thereby retiring 26 million shares.

在本季度結束時，我們的現金和現金等價物為 8.54 億美元，我們在 11 億美元的循環信貸額度下沒有借款。最後，我們在第二季度回購了 2500 萬美元的 C 類普通股，從而淘汰了 320 萬股之前流通在外的股票。根據我們為期 2 年的 5 億美元計劃，我們回購了價值 3.5 億美元的 C 類股票，從而退市了 2600 萬股。

Next, let's turn to our fiscal '23 outlook. As a reminder, the comparable periods are the corresponding quarters from the trailing 12 months from April 1 of 2021 through March 31, 2022. As Colin alluded to earlier, general economic uncertainty has increased since the last -- we provided our outlook. As such, we have revised our full year revenue and profitability expectations. Accordingly, we now expect revenue to be up at a low single-digit rate on a reported basis versus our prior outlook of 5% to 7% growth. Excluding about 3 points of FX headwinds, currency-neutral revenue should be up at a mid-single-digit rate in fiscal '23 versus our previous outlook of 7% to 9%.

接下來，讓我們轉向我們的 23 財年展望。提醒一下，可比期間是從 2021 年 4 月 1 日到 2022 年 3 月 31 日的過去 12 個月的相應季度。正如科林早些時候提到的那樣，自上次以來，總體經濟不確定性有所增加——我們提供了我們的展望。因此，我們修改了全年收入和盈利預期。因此，我們現在預計收入將在報告的基礎上以低個位數的速度增長，而我們之前預期的增長為 5% 至 7%。排除約 3 個點的外匯逆風，與我們之前預期的 7% 至 9% 相比，貨幣中性收入在 23 財年應以中個位數的速度增長。

Looking down into our full year revenue outlook, we're now expecting North American revenue to be about flat and our international business to be up at a mid-single-digit rate and our apparel business to be about flat with low teen growth in our footwear business.

展望我們的全年收入前景，我們現在預計北美收入將基本持平，我們的國際業務將以中個位數的速度增長，我們的服裝業務將基本持平，我們的青少年增長率較低鞋類業務。

Next, there is no change to our expectation that gross margin should decline 375 to 425 basis points in fiscal '23. This compares with our prior year's baseline rate of 49.6%. Within this decline, we expect roughly a 1/4 will be related to negative impacts from higher promotions and discounting, a quarter from elevated freight and product costs and the rest from channel mix, changes in foreign currency and product mix.

接下來，我們對 23 財年毛利率應下降 375 至 425 個基點的預期沒有變化。相比之下，我們上一年的基準利率為 49.6%。在這種下降中，我們預計大約 1/4 將與更高的促銷和折扣帶來的負面影響有關，四分之一與運費和產品成本上漲有關，其餘的則與渠道組合、外彙和產品組合的變化有關。

Moving down the P&L. As we manage against a more tempered top line, we are now planning SG&A to be down slightly compared to the prior year. We remain committed to ensuring our investment dollars are optimized to the areas with the highest returns while proactively identifying areas to manage expenses appropriately, thus further demonstrating our agility and balanced approach to SG&A management.

向下移動損益表。由於我們管理著更加溫和的收入，我們現在計劃 SG&A 與去年相比略有下降。我們仍然致力於確保我們的投資資金針對回報率最高的領域進行優化，同時主動確定適當管理費用的領域，從而進一步展示我們對 SG&A 管理的敏捷性和平衡方法。

Dropping this through, we now expect our operating income to reach $270 million to $290 million. Excluding the legal expense related to ongoing litigation matters, adjusted operating income is expected to reach $290 million to $310 million. That takes us to diluted earnings per share for fiscal '23, which we now expect to be $0.56 to $0.60, lowering the range by $0.05 versus our previous outlook. This includes a $0.28 benefit related to a tax valuation allowance release expected to be realized mainly during the fourth quarter. Of this $0.28 benefit, $0.16 is related to prior restructuring.

放棄這一點，我們現在預計我們的營業收入將達到 2.7 億美元至 2.9 億美元。不計與正在進行的訴訟事項相關的法律費用，調整後的營業收入預計將達到 2.9 億美元至 3.1 億美元。這使我們將 23 財年的每股收益攤薄，我們現在預計為 0.56 美元至 0.60 美元，與我們之前的展望相比，該範圍降低了 0.05 美元。這包括與預計主要在第四季度實現的稅收評估免稅額釋放相關的 0.28 美元收益。在這 0.28 美元的收益中，0.16 美元與之前的重組有關。

Additionally, the previously noted legal expense have a $0.04 negative impact. Therefore, excluding these net positive impacts of $0.12, adjusted diluted earnings per share is expected to be between $0.44 and $0.48.

此外，前面提到的法律費用有 0.04 美元的負面影響。因此，不包括這些 0.12 美元的淨正面影響，調整後的每股攤薄收益預計在 0.44 美元至 0.48 美元之間。

Now turning to color on the second half of fiscal '23, where we expect third quarter revenue to be flat to slightly up on a reported basis and up at a low to mid-single-digit rate on a currency-neutral basis. For the fourth quarter, we expect revenue to be up at a mid- to high single-digit rate on a reported basis and up at a high single-digit rate on a currency-neutral basis. As a reminder, the fourth quarter of fiscal '23 lapped our transition quarter of 2022, which was significantly impacted by revenue headwinds from our proactive decision to cancel orders due to COVID-related disruptions. Thus, part of our fourth quarter growth expectation is related to recapturing some of that business.

現在轉向 23 財年下半年的顏色，我們預計第三季度收入將在報告的基礎上持平或小幅增長，並在貨幣中性的基礎上以低至中個位數的速度增長。對於第四季度，我們預計收入將在報告的基礎上以中高個位數的速度增長，在貨幣中性的基礎上以高個位數的速度增長。提醒一下，23 財年第四季度超過了我們 2022 年的過渡季度，這受到了我們因 COVID 相關中斷而主動決定取消訂單的收入逆風的顯著影響。因此，我們第四季度增長預期的一部分與重新獲得部分業務有關。

Next, we expect gross margin to be down approximately 550 to 600 basis points in the third quarter due to negative impacts from elevated promotional activities, shifts in channel mix, changes in foreign currency and changes in product mix due to footwear skewing higher than apparel. We expect 100 to 150 basis point decline in the fourth quarter as we finish the year.

接下來，我們預計第三季度毛利率將下降約 550 至 600 個基點，原因是促銷活動增加、渠道組合轉變、外匯變化以及鞋類高於服裝導致產品組合變化的負面影響。我們預計今年第四季度將下降 100 至 150 個基點。

Bringing this to the bottom line, we expect third quarter operating income to reach approximately $75 million to $85 million and $0.09 to $0.11 of diluted earnings per share. This includes a tax valuation benefit of $0.02 related to the prior restructuring. So excluding this benefit, adjusted diluted earnings per share is expected to be between $0.07 and $0.09.

考慮到這一點，我們預計第三季度的營業收入將達到約 7500 萬美元至 8500 萬美元，攤薄後每股收益為 0.09 美元至 0.11 美元。這包括與先前重組相關的 0.02 美元的稅收估值收益。因此，不包括這一收益，調整後的每股攤薄收益預計在 0.07 美元至 0.09 美元之間。

To round it out, this would imply an expected fourth quarter diluted earnings per share range of $0.27 to $0.29, which includes an estimated $0.24 benefit related to the tax valuation allowance release. Excluding the restructuring-related valuation allowance benefit of $0.13, we expect $0.14 to $0.16 of adjusted diluted earnings per share for the fourth quarter.

為了完善它，這意味著預計第四季度攤薄後每股收益在 0.27 美元至 0.29 美元之間，其中包括與稅收評估免稅額釋放相關的估計 0.24 美元收益。不包括與重組相關的 0.13 美元的估值津貼收益，我們預計第四季度調整後的稀釋每股收益為 0.14 至 0.16 美元。

In closing, we remain bullish about our evolving long-term strategy and confident that our playbook positions us well to navigate the challenging near-term environment. Having the ability to take a balanced approach to mitigate near-term pressures, while laying the groundwork for our next chapter of more pronounced growth is due to the hard work we've put into our operational plan and our brand with a team that is relentlessly focused on our product, our story and serving athletes globally.

最後，我們仍然看好我們不斷發展的長期戰略，並相信我們的劇本使我們能夠很好地應對充滿挑戰的近期環境。有能力採取平衡的方法來緩解近期壓力，同時為我們下一章更顯著的增長奠定基礎，這歸功於我們在運營計劃和品牌中投入的辛勤工作，以及我們的團隊不懈努力專注於我們的產品、我們的故事和為全球運動員服務。

In the near term, we are driving the business efficiently and with agility, while executing the strategic shift necessary to prime Under Armour for more sustainable, profitable growth over the long term.

在短期內，我們正在高效、靈活地推動業務發展，同時執行必要的戰略轉變，為 Under Armour 提供更可持續的長期盈利增長。

I will turn it back to the operator so we can answer your questions. Thank you.

我會將其轉回給接線員，以便我們回答您的問題。謝謝你。

(Operator Instructions) Our first question comes from Matthew Boss with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Matthew Boss。

So maybe for Kevin or Colin, how would you describe the current health of the brand? Any material changes that you're seeing with forward wholesale orders? And what do you see as the time line for that pivot to growth that, Kevin, I think you cited to kick off the call.

那麼對於 Kevin 或 Colin，您如何描述該品牌目前的健康狀況？您在遠期批發訂單中看到的任何重大變化？凱文，我認為您在啟動電話會議時引用了該轉向增長的時間表，您認為該時間表是什麼。

I think we -- there's a few things playing out there. I think this has been part of our journey for a couple of years now with regards to just trying to exit a number of undifferentiated doors. And so we're already kind of starting to see more -- the quality of the revenue we're showing now is certainly much better than it was kind of 3 to 4 years ago. So from that point of view, we already feel as if we're kind of on that journey. We're obviously continuing to build that out.

我認為我們 - 有一些事情正在發揮作用。我認為這已經是我們幾年來的旅程的一部分，只是試圖退出一些無差別的大門。所以我們已經開始看到更多——我們現在展示的收入質量肯定比 3 到 4 年前要好得多。因此，從這個角度來看，我們已經感覺自己好像正在經歷那段旅程。我們顯然正在繼續構建它。

And part of that is kind of this resetting of the core consumer that we talked about, the target consumer for 16 to 20 years seems to athlete the pivot into Live and allowing us to kind of lean into a larger part of the market as well. So all of this is coming together from the point of view of how do we actually think about continuing to premiumize the brand and continue to kind of drive the brand further up market and allow us to really start to drive the growth that we know that there is for this brand and the demand there is for this brand. So we're feeling pretty comfortable and confident with regards to how that's starting to manifest itself.

其中一部分是我們談到的核心消費者的重置，16 到 20 年的目標消費者似乎在推動轉向 Live 並讓我們也可以向更大的市場傾斜。所以所有這一切都是從我們如何真正考慮繼續提升品牌並繼續推動品牌進一步上升市場並讓我們真正開始推動我們所知道的增長的角度來看的是為了這個品牌和對這個品牌的需求。所以我們對它是如何開始表現出來的感到非常舒服和自信。

Great. And then maybe just to follow-up on that, Colin. So on the strategic opportunities that you cited, I guess, first on the accelerated segmentation. Should we think about this as offensive? Or is there a cut to grow that we need to consider with that? And then secondly, on the total addressable market opportunity for casual wear, -- what's your confidence in broadening the base to that segment?

偉大的。然後也許只是為了跟進，科林。所以關於你提到的戰略機會，我想，首先是關於加速細分。我們應該認為這是冒犯性的嗎？還是我們需要考慮增長的削減？其次，關於休閒裝的潛在市場機會，您對擴大該細分市場的基礎有什麼信心？

Well, 2 questions there. One was I think we don't see this as a necessity to cut to grow. There's clearly demand for Under Armour to kind of play in this higher, I guess, at a slightly more premium level perhaps than we have been playing here in North America. So working through the mechanics of how we unlock that is something that we believe we can do and accessing that through the 16- to 20-year old team sport athlete because they clearly drive so much more -- they cost a much larger halo with regards to how they show up across the market. And sorry, the second half of your question, could you just repeat that?

嗯，有2個問題。一個是我認為我們不認為這是削減增長的必要條件。我猜想，Under Armour 顯然需要在這個更高的地方打球，也許比我們在北美打球的水平要高一些。因此，通過研究我們如何解鎖的機制，我們相信我們可以做到這一點，並通過 16 到 20 歲的團隊運動運動員來實現這一點，因為他們顯然開得更多——他們花費了更大的光環。了解它們在市場上的表現。對不起，你問題的後半部分，你能重複一遍嗎？

Just on the Live category that you cited, the casual wear, what's the total addressable market opportunity there? And just your confidence of competing in that category as an expansion of the core?

就您提到的休閒服這一 Live 類別而言，那裡總的潛在市場機會是什麼？只是您對在該類別中競爭作為核心擴展的信心嗎？

Well, we believe there's about a $300 billion opportunity there that which is an area we haven't really focused on or worked through how to play in. And so we're clearly aware that if we look at kind of where we meet the athlete at this moment in time, we talk about the journey to compete, train, compete recover, which has been the 3 kind of aspects of the journey of compete that we're focusing on today. And if you think about that, Matthew, it really only probably encompasses probably 30%, 20%, 30% of the day. So the opportunity of leaning into that other 70% of that day is clearly a huge opportunity there. And when we talk to athletes as well, it's clear they want to have access to our product or they want to feel comfortable to where our product backwards as they're traveling to the court field or pitch. So the opportunity for us to lean into that.

好吧，我們相信那裡有大約 3000 億美元的機會，這是我們沒有真正關注或研究過如何打球的領域。所以我們清楚地意識到，如果我們看看我們在哪裡遇到運動員在這個時候，我們談論比賽，訓練，比賽恢復的旅程，這一直是我們今天關注的比賽旅程的三個方面。如果你想一想，馬修，它真的可能只包含一天中的 30%、20%、30%。因此，利用當天其他 70% 的時間顯然是一個巨大的機會。當我們也與運動員交談時，很明顯他們希望能夠使用我們的產品，或者他們希望在他們前往球場或球場時對我們的產品倒退感到舒服。因此，我們有機會了解這一點。

It feels as if it's an open door for us. We need to just do a better job of working through how we execute against that. And that's the pivot to Live that we're putting in place at this moment in time. And you're starting to see a little bit through show up through SlipSpeed. So yes, clearly, we feel there's a big opportunity down we're leaning into it.

感覺好像它為我們打開了一扇門。我們需要更好地解決我們如何執行這一點。這就是我們目前正在實施的 Live 的樞紐。你開始通過 SlipSpeed 看到一點點。所以，是的，很明顯，我們覺得我們正在抓住一個很大的機會。

And our next question comes from Simeon Siegel with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Simeon Siegel。

If I can follow up on that a little bit. I was just hoping to get your perspective on how you guys are thinking through maybe what external signals might impact how you think about that balance between the desire to grow versus brand elevation and gross margin? Like I know the core focus is looking for the future growth. But just reflecting on all the success you've had over the past couple of years of reelevating the brand. And honestly, much to the credit of the team. You're still one of the largest brands in the world. So I'm just wondering if there's a scenario where it might make sense to sell less charge more and then earn more while doing that. And then Dave, I have a follow-up for you after that, if I can.

如果我能跟進一下。我只是希望了解你們的看法，或許哪些外部信號可能會影響你們如何看待增長願望與品牌提升和毛利率之間的平衡？就像我知道的那樣，核心重點是尋找未來的增長。但只是回顧一下你在過去幾年中重新提升品牌所取得的所有成功。老實說，這要歸功於團隊。你仍然是世界上最大的品牌之一。因此，我只是想知道是否存在這樣一種情況，即銷售更少的費用，然後在這樣做的同時賺取更多的收入。然後是戴夫，如果可以的話，在那之後我會為你跟進。

Sure. I think we already -- when we look at the amount of consideration there is out there for the brand, we believe there's clearly an opportunity for us to maintain our current customer base that we have in place now while continuing to work through how do we elevate that. And that's kind of the model we've been running for the past couple of years as we've gone through what we can't call our constrained model where we've actually been holding back a tad in order to kind of optimize the way in which the brand shows up. And the fact that we've continued to reduce our exposure in the off-price market and walking away from undifferentiated doors. I can't say that this morning, undifferentiated doors is a great example of how we think we can continue on that journey.

當然。我認為我們已經 - 當我們看到對該品牌的考慮程度時，我們相信我們顯然有機會維持我們現在擁有的現有客戶群，同時繼續努力解決我們如何提升它。這就是我們過去幾年一直在運行的模型，因為我們已經經歷了我們不能稱之為約束模型的模型，實際上我們一直在保留一點點以優化方式品牌出現在其中。事實上，我們繼續減少我們在低價市場的曝光率，並遠離無差別的大門。我不能說今天早上，無差別的門是我們認為我們可以繼續這一旅程的一個很好的例子。

So I don't think it requires us to make fundamental shift. If anything, I think there's opportunities for us to lean into additional parts of the market where we haven't really shown up particularly well. If you think of the mall kind of stores and the mall traffic, it's not somewhere where we play particularly well and footwear is an incredibly important part of our business and continues to grow significantly and grew pretty well last quarter.

所以我認為這不需要我們做出根本性的轉變。如果有的話，我認為我們有機會進入市場的其他部分，我們還沒有真正表現得特別好。如果您考慮購物中心類型的商店和購物中心的客流量，這並不是我們表現特別好的地方，鞋類是我們業務中非常重要的一部分，並且繼續顯著增長並且上個季度增長相當不錯。

And that's clearly an area where we continue to increase ASPs and really start to resonate in that part of the market as well. So we believe we can certainly kind of continue to drift upwards a little bit in the way in which the brand is showing up. But we don't believe that requires us to do a wholesale kind of restructuring from the point of view of how we're thinking of selling through. Dave, I'm not sure if you want to add.

這顯然是我們繼續提高 ASP 並真正開始在該部分市場引起共鳴的領域。所以我們相信我們當然可以在品牌出現的方式上繼續向上漂移一點。但我們認為，從我們如何考慮銷售的角度來看，這並不需要我們進行大規模的重組。戴夫，我不確定你是否要添加。

Yes. I would maybe just add to that, too, that as you think about a lot of what we're focusing on with our investments right now around really leaning in on the digital on the e-com front, with a lot of the different things that Colin already mentioned in his prepared remarks and being able to leverage that to be able to show a broader range of our product and more best level product as well. And same thing relative to Brand House stores and leaning in there on the concepts and wanting to roll out more full-price Brand House stores, especially in North America as we go into next year. So I think controlling that and being able to show the premium assortment in a bigger way is going to be helpful, all while continuing to kind of step off and slow down relative to use of kind of the third-party off-price channel, which we've done a lot of work to bring that down into kind of that 3% range of revenue over the last few years. So a lot of different things at play there, but I think we're definitely on the right track and there's a lot of opportunity to lean in even further when we go further into the Live side of the product.

是的。我也可能會補充一點，當你考慮到我們現在關注的很多投資方面，圍繞著真正傾向於電子商務領域的數字化，有很多不同的事情Colin 在他準備好的評論中已經提到了這一點，並且能夠利用這一點來展示我們的產品範圍更廣，以及更優質的產品。與 Brand House 商店相關的事情也是如此，並且傾向於在概念上並希望推出更多全價 Brand House 商店，尤其是在我們進入明年的北美。因此，我認為控制這一點並能夠以更大的方式展示優質分類將是有幫助的，同時相對於使用第三方折扣渠道，繼續走下坡路並放慢速度，這在過去的幾年裡，我們做了很多工作來將其降低到 3% 的收入範圍內。所以那裡有很多不同的東西在起作用，但我認為我們肯定走在正確的軌道上，當我們進一步進入產品的 Live 方面時，有很多機會進一步傾斜。

And then, Dave, if I could have a quick follow-up. It looks like there is across the channel, maybe a footwear versus apparel dynamic. So within the full year guide, how you're thinking about footwear versus apparel? And then if you just elaborate a little bit more on the ability to hold gross margin guidance despite the revenue, I think that will be helpful because that's obviously encouraging.

然後，戴夫，如果我可以快速跟進。看起來整個渠道都有，可能是鞋類與服裝的動態。那麼在全年指南中，您如何看待鞋類與服裝？然後，如果您僅詳細說明儘管有收入但仍能保持毛利率指導的能力，我認為這將有所幫助，因為這顯然令人鼓舞。

Yes. I mean a couple of things there. I would say first of all, you're right in that there is a little bit of a headwind relative to driving and performing so well on the footwear side, which we're excited about. And that's something we can absolutely plan for and lean into. I would say though that, that product mix headwind is getting smaller and smaller as we build more scale in footwear and continue to get better in our design and overall efficiency, that product margin gap is getting smaller between our apparel and footwear. So it's not as much of a differentiating headwind on gross margin than it used to be.

是的。我的意思是有幾件事。首先我要說的是，你說得對，相對於在鞋類方面的駕駛和表現如此出色，存在一點阻力，我們對此感到興奮。這是我們絕對可以計劃和傾向於的事情。不過我想說的是，隨著我們在鞋類領域建立更大的規模並繼續提高我們的設計和整體效率，產品組合的逆風越來越小，我們的服裝和鞋類之間的產品利潤率差距越來越小。因此，毛利率的差異化逆風並不像過去那樣大。

The second thing I would say is that -- we -- when you think about 3 months back when we gave our outlook then and we took our gross margin down then in that, we had contemplated a very pressured environment, especially in Q3 fiscal of this year. And so I think we were pretty aggressive and got ahead of it then, and we're planning to hold at that level. Again, this is where we want to try and keep the brand as premium as possible. We understand there's going to be a lot of discounting and promotion out there. And we are going to play in that. But we are not planning to go kind of below 2019 levels, and that's reflected in our revenue update.

我要說的第二件事是 - 我們 - 當你回想 3 個月前我們當時給出我們的前景並且我們當時降低了我們的毛利率時，我們已經考慮了一個非常有壓力的環境，特別是在第三財季今年。所以我認為我們非常激進並且領先於它，我們計劃保持在那個水平。同樣，這是我們想要嘗試保持品牌盡可能優質的地方。我們知道那裡會有很多折扣和促銷活動。我們將參與其中。但我們不打算低於 2019 年的水平，這反映在我們的收入更新中。

So again, it is a little bit of maybe less is more relative to how we finish out the back half of the year, but we feel confident in holding our outlook there. And I would say that it's not that there hasn't been any noise per se when we think about it. We have had some additional FX pressure developing from 3 months back. But then on the flip side, we're also planning a little bit less business with third-party off-price. And those 2 things kind of offset a little bit as well. So there's been some small puts and takes on our view of gross margin, but we still feel like we're in a great spot with the outlook that we're reaffirming here on gross margin.

再說一次，相對於我們如何完成下半年的工作，這可能有點少，但我們對保持我們的前景充滿信心。我會說，當我們考慮它時，並不是沒有任何噪音。從 3 個月前開始，我們已經承受了一些額外的外匯壓力。但另一方面，我們還計劃減少第三方折扣業務。這兩件事也有點抵消。因此，我們對毛利率的看法出現了一些小的看跌期權，但我們仍然覺得我們處於一個很好的位置，我們在這裡重申了毛利率的前景。

Our next question comes from Jay Sole with UBS.

我們的下一個問題來自瑞銀的 Jay Sole。

Obviously, there's a lot of supply chain costs impacting margins this year. Maybe just talk about -- a little bit more about supply chain expectations as you look into next year, given spot rates have changed and maybe flow of goods has improved, what you're expecting about the kind of margins you can recover and just sort of like the ability to deliver on time and accurately as we go through the rest of the fiscal year and into next year?

顯然，今年有很多供應鏈成本影響了利潤率。也許只是談談 - 考慮到明年的供應鏈預期，即期匯率已經發生變化，商品流動可能有所改善，你對可以恢復的利潤率的期望是什麼，只是排序就像我們在本財年剩餘時間和明年一樣準時準確地交付的能力？

Yes, Jay, this is Dave. I'll take that. If you think about this year, we've talked about our biggest headwinds being the higher promotions and discounting and then also the elevated freight and product costs. And although we're not ready to give detailed thoughts on next year, we would expect gross margin to improve next year. If you step back and look at 2 of those big drivers, we would anticipate that the year-over-year freight cost would be better next year than it is this year. We're already seeing that trend as we look at Q3 that we're going into right now that it's starting to kind of stabilize.

是的，傑，這是戴夫。我會接受的。如果您考慮今年，我們已經談到我們最大的不利因素是更高的促銷和折扣，然後是運費和產品成本的上漲。儘管我們還沒有準備好對明年給出詳細的想法，但我們預計明年的毛利率會有所提高。如果您退後一步，看看其中兩個大驅動因素，我們預計明年的貨運成本將比今年好。當我們看到我們現在正在進入的第三季度時，我們已經看到了這種趨勢，它開始趨於穩定。

And then with those rates coming down, we're actually seeing freight costs become a gross margin tailwind for us in Q4. So we would expect that to definitely continue some next year, which would help year-over-year gross margin. Then also the promotions and discounting, we're not exactly expecting the market to completely get better as we hit April 1, but we also do believe that we'll get better as we go throughout next year. So the promotion and discounting level, we would expect to probably get a little bit better as well. So there's just 2 simple factors there that would lead you in a positive direction for next year.

然後隨著這些費率的下降，我們實際上看到貨運成本在第四季度成為我們的毛利率順風。因此，我們預計明年這種情況肯定會繼續下去，這將有助於實現同比毛利率。然後還有促銷和折扣，我們並不完全期望市場在 4 月 1 日時會完全好轉，但我們也相信明年我們會變得更好。所以促銷和折扣水平，我們預計也可能會好一點。所以只有兩個簡單的因素可以引導你在明年朝著積極的方向前進。

And let me just jump in on the service levels. I think there's a couple of stories there. One is the fact that we are undoubtedly seeing kind of service levels improve as kind of supply chain getting themselves into a much healthier position. And I mean the teams have done a lot of work here to make sure that we can optimize that. And so we're feeling pretty good about our ability to service the business through the balance of the year. Add to that the fact that I think we have done a nice job in managing inventories at the right appropriate level. Although as you've seen, our numbers are up on a year-over-year basis. It feels as if we're now back at the inventory levels, we kind of need to be in order to run this business appropriately. So overall, we're feeling pretty strong with regards to how supply chain is playing out and our ability to kind of use that actually is a tool for us to continue to drive further growth. So.

讓我談談服務水平。我想那裡有幾個故事。一個事實是，隨著供應鏈進入更健康的位置，我們無疑會看到服務水平的提高。我的意思是團隊在這裡做了很多工作，以確保我們可以優化它。因此，我們對我們在今年餘下時間為業務提供服務的能力感到非常滿意。除此之外，我認為我們在適當水平的庫存管理方面做得很好。儘管如您所見，我們的數字逐年上升。感覺好像我們現在回到了庫存水平，為了適當地經營這項業務，我們需要這樣做。因此，總體而言，我們對供應鏈的運作方式以及我們使用這實際上是我們繼續推動進一步增長的工具的能力感到非常強烈。所以。

Yes. I would just tag one last thought on to that. Not just the freight rates, but use of air freight late last year and throughout this fiscal year has been a lot higher due to the supply chain challenges and having to catch up on getting that product in. So as Colin mentioned, now that we're working through that and supply chain is getting more up to speed and more up to the right time line, the utilization of air freight, which is pretty costly, is starting to go significantly down, and we wouldn't anticipate that, that would also continue down next year as well. So another little bit of a tailwind for us as we go into gross margin next year.

是的。我只想在這上面加上最後一個想法。不僅是運費，而且由於供應鏈挑戰以及必須趕上該產品的進口，去年底和整個財政年度的空運使用率都高得多。所以正如科林所說，現在我們'重新解決這個問題，供應鏈越來越快，越來越符合正確的時間表，成本相當高的空運的利用率開始顯著下降，我們不會預料到，那會明年也會繼續下跌。因此，當我們明年進入毛利率時，對我們來說又是一點順風。

Got it. That's super helpful.

知道了。這非常有幫助。

And our next question comes from Adrienne Yih with Barclays.

我們的下一個問題來自 Barclays 的 Adrienne Yih。

Two questions. I guess the first is on the promotional kind of holiday and how that's coming through. Are you only seeing that sort of in the athletic apparel? Is it concentrated there -- is it concentrated mostly in the U.S. Clearly, your footwear was very strong. So I'm assuming the ASPs are nicely up there with units up without a lot promo. So any color on that. And then finally, are you using any off-price or elevated more off-price than perhaps from last quarter? Because I know you had talked about kind of using that channel a little bit more.

兩個問題。我想第一個是關於促銷類的假期，以及它是如何度過的。你只在運動服裝中看到過這種情況嗎？它是否集中在那裡 - 它主要集中在美國嗎？顯然，你的鞋子非常堅固。所以我假設 ASP 很好，沒有很多促銷。所以任何顏色。最後，與上一季度相比，您是否使用了任何降價或更高的降價？因為我知道你曾談到更多地使用該頻道。

And then my second kind of topic is on the wholesale order book, when you're having discussions with retailers tenant in the out season, as they had built safety stock in spring of this year, how are they talking about building their inventory in the channel, if that makes any sense? Will they be not buying that safety stock or just shifting it to where it normally should be the normal change of receipts.

然後我的第二個話題是關於批發訂單的，當你和零售商租戶在淡季討論時，因為他們在今年春天建立了安全庫存，他們是如何談論建立庫存的？頻道，如果這有意義嗎？他們會不會購買該安全庫存，或者只是將其轉移到通常應該是正常收據變更的地方。

So Adrienne, a lot to that question, I would say. A couple of different things. I would say as we saw through Q2 from an ASP perspective, our ASPs globally were slightly down, but really not very much. They were down a little bit in North America and APAC, where there's been a little bit more discounting in the market right now, where they were actually a little bit up in EMEA. So not a huge story though yet, definitely a mix shift for us, though, with the higher growth in footwear, that absolutely helps us out. And as we think about the back half of the year and from a discounting strategy, we do expect the higher discounting and promotional activities kind of given the evolving market conditions. But again, we expect to hold the line there and not go kind of deeper than 2019 and prior. So we do think we're well positioned there to kind of navigate however the environment may develop. So that's kind of how we're seeing things there. And then, Colin, I don't know if you want to comment on the wholesale or if you want me to jump on that?

所以Adrienne，我會說這個問題很多。幾個不同的東西。我想說，從 ASP 的角度來看，我們在第二季度看到，我們的全球 ASP 略有下降，但實際上並沒有下降很多。他們在北美和亞太地區有所下降，現在市場上有更多的折扣，而在歐洲、中東和非洲地區實際上有所上升。因此，雖然這還不是一個大故事，但對我們來說絕對是一個混合轉變，但隨著鞋類的更高增長，這絕對有助於我們擺脫困境。當我們考慮今年下半年和打折策略時，我們確實預計鑑於不斷變化的市場條件，會有更高的折扣和促銷活動。但同樣，我們預計將保持不變，並且不會比 2019 年及之前更深入。因此，我們確實認為我們在那里處於有利位置，可以在環境可能發展的情況下進行導航。這就是我們在那裡看待事物的方式。然後，科林，我不知道你是想對批發發表評論，還是想讓我跳進去？

No, I think just building on that to the point of view, obviously, it's a little early to kind of give information. We don't generally give kind of inter-quarter kind of numbers with regards to holidays playing out. But yes, there is an expectation that obviously wholesale partners will kind of manage their inventories as we all do. As we kind of go through next year, we feel as this -- again, we're in a good place from the point of view of being able to service their business. And we have good visibility of our Spring/Summer '23 order book, and we're feeling pretty strong, feeling pretty comfortable on how that will allow us to continue to execute throughout the year. And we haven't really started taking orders for fall in the 23 years, so it's a little early to kind of say how that's going to play out.

不，我認為只是基於這個觀點，顯然，現在提供信息還為時過早。我們通常不會給出關於假期的季度間數字。但是，是的，顯然批發合作夥伴會像我們一樣管理他們的庫存。當我們明年經歷時，我們覺得 - 再次，從能夠為他們的業務服務的角度來看，我們處於一個很好的位置。我們對我們的 23 年春/夏訂單有很好的了解，我們感覺很強烈，對如何讓我們全年繼續執行感到很自在。 23 年來我們還沒有真正開始接受秋季訂單，所以現在說這將如何發揮作用還為時過早。

But undoubtedly, those guys will be managing their inventory appropriately. But we continue to lean into those relationships. We've got a good, strong solid relationship with our wholesale partners. And we'll continue to partner with them to ensure we get to the right solution. And again, we do continue to feel more optimistic with regard to what we're starting to see from the point of view of the positivity around the brand that and the demand that we feel is out there for the brands that will allow us to continue to optimize those relationships as well.

但毫無疑問，這些人將適當地管理他們的庫存。但我們繼續傾向於這些關係。我們與批發合作夥伴建立了良好、牢固的關係。我們將繼續與他們合作，以確保我們找到正確的解決方案。再一次，我們確實繼續對我們開始看到的事情感到更加樂觀，從圍繞品牌的積極性的角度來看，我們認為對品牌的需求將讓我們繼續也可以優化這些關係。

And Adrienne, I know kind of the last piece there of wholesale, you mentioned the off-price channel. Within the off-price channel, we are anticipating to keep that in check and actually make sure that the business is continuing to kind of stay at that 3% of total mix of revenue for the year. So that is not going to be really a growth area for us or one that we're leaning into that heavily. Right now, that market is pretty tough as well and pricing isn't that great.

還有 Adrienne，我知道那裡的最後一件批發，你提到了折扣渠道。在折扣渠道中，我們預計會對其進行控制，並實際確保該業務繼續保持在該年度總收入的 3% 的水平。因此，這對我們來說不會是一個真正的增長領域，也不會成為我們大力發展的領域。現在，這個市場也很艱難，定價也不是那麼好。

So from a brand perspective, it's not really where we want to lean in. We want to lean out, if anything there and rely more on our outlet stores and continued tight management of our inventory. And I know that our inventory levels are going to be growing year-over-year, and we mentioned that in the prepared remarks, but I think just keep in mind how lean we were running last year and comping against that. And the fact that we're still going to be running the business at a 3.0 turn or better as we run through the back half of this year. So I think that's probably a little bit of a better metric than just year-over-year growth with such a volatile environment that we're dealing with.

因此，從品牌的角度來看，這並不是我們真正想要傾斜的地方。我們想要傾斜，如果有的話，更多地依賴我們的直銷店和繼續嚴格管理我們的庫存。而且我知道我們的庫存水平將逐年增長，我們在準備好的評論中提到了這一點，但我想請記住我們去年的運營情況和與之相抗衡的程度。事實上，當我們度過今年下半年時，我們仍將以 3.0 轉或更好的速度經營業務。因此，我認為這可能比我們正在處理的如此動蕩的環境中的同比增長更好一些。

And I'd just add that our inventory is clean. It's current stock, it's not particularly aged stock. So I mean it's the right place right stock in the right place at the right time to optimize the market. So I don't think we're going to need to play any more than we've already called out.

我只想補充一點，我們的庫存是乾淨的。這是當前庫存，不是特別陳舊的庫存。所以我的意思是在正確的時間、正確的地點、正確的股票來優化市場。所以我認為我們不需要比我們已經呼籲的更多的比賽。

Our next question comes from Brian Nagel with Oppenheimer.

我們的下一個問題來自奧本海默的 Brian Nagel。

So a couple of questions. I think both bigger picture. I mean one a bit of a follow-up to a prior question. But -- and I know it's hard to -- it's difficult to parse this out. But if you look at the promotional activity happening now within the space or even at Under Armour, I apologies, is that -- is it more a function of brands working through excess inventories? Or is there actually a component now that that's just more normal promotions and maybe reacting to a potentially softer consumer backdrop? And then the second question I have relates to that. You mentioned in your prepared comments about just the overall environment turning more challenging in this quarter than what we discussed in the prior quarter, obviously, a lot of the pressures on the consumer very well documented out there. But can you talk more specifically about what you're seeing that sort of that gives you that view?

所以有幾個問題。我認為兩者都有更大的圖景。我的意思是對先前問題的一點跟進。但是——我知道這很難——很難把它解析出來。但是，如果你看看現在在空間內甚至在安德瑪 (Under Armour) 發生的促銷活動，我很抱歉，這是否更像是品牌通過過剩庫存工作的功能？還是現在實際上有一個組件，這只是更正常的促銷活動，並且可能對潛在的疲軟消費者背景做出反應？然後我的第二個問題與此有關。您在準備好的評論中提到，與我們在上一季度討論的相比，本季度的整體環境變得更具挑戰性，顯然，消費者面臨的許多壓力都得到了很好的記錄。但是你能更具體地談談你所看到的那種給你這種觀點的東西嗎？

Yes. I guess a couple of things, Brian. I think that -- when we look at the promotional activities, it's a little bit of both as far as what you mentioned. We see a lot of brands have been bringing in a lot of inventory because they assume -- some assume that the demand was going to be as high as last year. And because a lot of the factory basis were behind, they were really putting in a lot of orders to try and catch up and assume that demand was going to be similar this year. So you've got a lot of inbound inventory that's coming in to a market that's been softening. So there are a lot of brands that have a fair amount of product out there in the market. And so they are starting to aggressively discount more to be able to move that and not hanging over as much into next year. So that's definitely a big part of it.

是的。我猜有幾件事，布賴恩。我認為 - 當我們查看促銷活動時，就您提到的而言，兩者都有一點。我們看到很多品牌一直在引入大量庫存，因為他們假設 - 有些人假設需求將與去年一樣高。而且由於很多工廠基礎落後，他們真的下了很多訂單來試圖趕上並假設今年的需求會相似。所以你有很多入庫庫存進入一個一直在走軟的市場。所以有很多品牌在市場上有相當數量的產品。因此，他們開始積極打折，以便能夠將其轉移到明年，而不是拖到明年。所以這絕對是其中很大一部分。

But then on top of that, the consumer is getting tighter. Their wallet and their spend on discretionary is getting a little bit tighter. You do see a little bit more spend on travel and entertainment, but the overall wallet size is a little bit less. So it's a little bit of both that we're seeing. And as we think about the promotion levels in the back half of the year, keep in mind that we are seeing next quarter or this quarter, we're in right now, Q3 expected to be down 550 to 600 basis points and the biggest part of that is the continued promotional activities we expect to see. So that is built into our outlook, and we're comfortable with kind of where we're sitting in that range.

但最重要的是，消費者變得越來越緊。他們的錢包和可自由支配的支出變得越來越緊。您確實看到在旅行和娛樂方面的支出增加了一些，但整體錢包的大小要小一些。所以我們看到的是兩者兼而有之。當我們考慮下半年的促銷水平時，請記住，我們看到的是下個季度或本季度，我們現在正處於第三季度，預計將下降 550 至 600 個基點，其中最大的部分其中是我們期望看到的持續促銷活動。所以這是我們的展望，我們對我們在這個範圍內所處的位置感到滿意。

But I would just add that I think although we're obviously heading into some choppy times in the kind of the midterm, I guess, the best way to put it from the point of view of the economy. We do also believe that kind of this part of the market is going to continue to remain strong. I mean, there was recently a UPS forecast came out that was suggesting there's a 6.5% global long-term CAGR on this kind of part of the industry. So we feel as if we're playing in the right part of the industry, and yes, we're going to have to navigate these short-term challenges, but we're in a great position to do that. And we feel we're in the right industry, and we're well set to kind of continue to accelerate through that.

但我想補充一點，我認為雖然我們顯然正進入中期的一些動盪時期，但我想，從經濟的角度來看，這是最好的方式。我們也相信這部分市場將繼續保持強勁。我的意思是，最近 UPS 發布了一份預測，表明該行業的全球長期復合年增長率為 6.5%。所以我們感覺好像我們在這個行業的正確部分玩，是的，我們將不得不應對這些短期挑戰，但我們處於一個很好的位置來做到這一點。而且我們覺得我們處於正確的行業，我們已經準備好繼續加速。

Thank you. And our next question comes from John Kernan with Cowen.

謝謝你。我們的下一個問題來自 John Kernan 和 Cowen。

Nice job on the quarter. Yes, I think it's -- you're proving the ability to manage SG&A dollars and rate, particularly in the back half of this year. Can you talk to as revenues reaccelerate in the fourth quarter on a constant currency basis and potentially into next year? How you're going to manage rates both the SG&A rate and dollars.

本季度幹得不錯。是的，我認為是——你證明了管理 SG&A 美元和費率的能力，尤其是在今年下半年。隨著第四季度收入在固定貨幣基礎上重新加速並可能持續到明年，你能談談嗎？您將如何管理 SG&A 費率和美元費率。

Well, let me lead off on this and then I'll hand it over to Dave. But I think the work that we've done over the past 3 to 5 years and kind of standing up our operating model, is one of the reasons why we feel confident that we now have a process through which we can ensure that we are optimizing our SG&A based upon the size of the business. It's clear that we -- this has been an important part of kind of the work that we've had in flight for the past couple of years.

好吧，讓我先開始，然後我會把它交給戴夫。但我認為我們在過去 3 到 5 年所做的工作以及在某種程度上支持我們的運營模式，是我們相信我們現在有一個可以確保我們正在優化的流程的原因之一我們的 SG&A 基於業務規模。很明顯，我們——這是過去幾年我們一直在進行的工作的重要組成部分。

And we -- and obviously, over the last kind of 90 days or so, we've doubled down on that to make sure that we're being incredibly efficient in how we optimize the operating model. And that's really now starting to pay dividends. And it feels as if we are well positioned to put this pivot to growth. We've got our SG&A in check. We know how our operating model works. We know how to optimize the individual parts of it and really how to drive leverage out of that. So Dave, I'm not sure if you want to go through it in a little bit more detail.

而且我們 - 顯然，在過去的 90 天左右，我們已經加倍努力，以確保我們在優化運營模式方面非常高效。這真的開始產生紅利了。感覺好像我們已經做好了將這一重心轉向增長的準備。我們已經檢查了我們的 SG&A。我們知道我們的運營模式是如何運作的。我們知道如何優化它的各個部分，以及如何真正利用它。所以戴夫，我不確定你是否想更詳細地介紹一下。

No. I mean I think that with all the work that we've done that Colin mentioned, fortunately, we removed a fair amount of some of the fixed costs and anchors that we're kind of dragging along. So now it allows us to be much more nimble. And I would also say that from a leadership team, we have a very enterprise mindset. So making the decisions of how to reprioritize and therefore, some business units having to sacrifice for others to be able to drive forward in key investment areas, whether it'd be kind of the digital and omni front or whether it'd be on footwear design, those conversations and making those changes and pivots like that are much, much more efficiently done than in the past.

不。我的意思是，我認為通過 Colin 提到的我們所做的所有工作，幸運的是，我們刪除了相當多的一些固定成本和我們拖累的錨。所以現在它讓我們變得更加靈活。我還要說，從領導團隊來看，我們有一種非常企業化的心態。因此，決定如何重新確定優先級，因此，一些業務部門不得不為其他業務部門做出犧牲，以便能夠在關鍵投資領域取得進展，無論是數字化和全方位的，還是鞋類領域設計，那些對話以及做出這些改變和轉變，比過去更有效地完成。

And with all the operating model and restructuring work that we've done, we're in a point now where we've got a really solid base to be able to grow from.

通過我們已經完成的所有運營模式和重組工作，我們現在已經有了一個非常堅實的基礎，可以從中成長。

So as we step forward, yes, there might be a little bit of an SG&A headwind relative to over-index growth from a DTC perspective, but that would come with higher gross margin as well, which would offset. So we're going to keep managing tightly. There's a lot of discipline within the organization at this point. Everybody is leaning in, and we're in a good spot to pivot to growth off of that.

因此，當我們向前邁進時，是的，從 DTC 的角度來看，相對於指數過度增長，SG&A 可能會有一點逆風，但這也會帶來更高的毛利率，這將抵消。因此，我們將繼續嚴格管理。在這一點上，組織內部有很多紀律。每個人都在努力，我們處於一個很好的位置，可以以此為基礎實現增長。

And our next question comes from Lorraine Hutchinson with Bank of America.

我們的下一個問題來自美國銀行的 Lorraine Hutchinson。

I was hoping you could provide a state of the union on the women's division. Can you just talk to the progress you've made? And if you see any investments needed to bolster your position here?

我希望你能提供一個關於婦女部門的工會狀況。你能談談你取得的進展嗎？如果您發現需要任何投資來鞏固您的地位？

I mean obviously, it continues to be a major focus from the point of view of how we continue to kind of look to drive out that part of the business. We've seen really strong results in areas of our home Meridian line which was initially focused on our women's business has done incredibly well with the Meridian pants and the moisture Infinity and the Cross Band in addition to that, things like the Crossback bras. So we continue to kind of double and we continue to see opportunity for us to grow that business.

我的意思很明顯，從我們如何繼續尋找推動這部分業務的角度來看，它仍然是一個主要焦點。我們在最初專注於女性業務的 Meridian 家庭系列領域看到了非常強勁的成果，除此之外，Meridian 褲子和防潮 Infinity 和 Cross Band 也取得了令人難以置信的好成績，此外還有 Crossback 文胸。所以我們繼續翻倍，我們繼續看到我們發展業務的機會。

The work we've done in standing up women-specific running product as well as something that's really started to resonate. So we expect to continue to double down in that part of the business. And certainly, as we're thinking about how our stores are merchandised the ways in which our women's business shows up across our DTC enterprise is something which we're continuing to work on. And we expect to see that continue to play out. Dave, do you want to jump in?

我們在站立女性專用跑步產品方面所做的工作以及真正開始引起共鳴的東西。因此，我們希望在這部分業務中繼續加倍努力。當然，當我們考慮我們的商店是如何進行商品化時，我們的女性業務在我們的 DTC 企業中出現的方式是我們正在繼續努力的事情。我們希望看到這種情況繼續發揮作用。戴夫，你想跳進去嗎？

Yes. I mean -- again, I think as we look to push hard on all the e-com investments and also on full-price brand house store rollouts, that's an opportunity for us to be able to really kind of increase the women's share of product assortment there and then continue to grow from that. So we're excited about where that could go, but we're continuing to dig deep on that side.

是的。我的意思是 - 再次，我認為，當我們努力推動所有電子商務投資以及全價品牌商店的推出時，這對我們來說是一個能夠真正增加女性產品份額的機會那裡的分類，然後繼續增長。所以我們對它的發展方向感到興奮，但我們正在繼續深入挖掘。

And our final question comes from Michael Binetti with Credit Suisse.

我們的最後一個問題來自瑞士信貸的 Michael Binetti。

Dave, I was just wondering if you could help us -- I know this was asked a little bit earlier, you gave us some directional color, but the gross margin guidance down 550 to 600 in the third quarter and then hand off to the down 100 to 150 in the fourth quarter. It seems like there's big enough buckets, and I know you highlighted the promotional activity, but maybe just if you could try to connect us to the rough scale of the components of that gross margin that you just gave us some of them for 2Q,it sounds like promotions are the biggest in the third quarter. And then is that the biggest piece that's assumed to roll off as you go into the fourth quarter?

戴夫，我只是想知道你是否可以幫助我們——我知道這個問題提早了一點，你給了我們一些方向性的顏色，但第三季度的毛利率指引下降了 550 至 600，然後又下降了第四季度100比150。似乎有足夠大的桶，而且我知道您強調了促銷活動，但也許只是如果您可以嘗試將我們與您剛剛給我們的第二季度毛利率組成部分的粗略規模聯繫起來，它聽起來促銷活動是第三季度最大的。然後這是假設你進入第四季度時最大的一塊嗎？

Maybe just a few thoughts on the biggest buckets between them? And then, I guess, just on the -- as you look at next year, and you gave us some shape of inventory up high 40s in third quarter, mid-30s at the end of fourth quarter? How do you see inventories coming into alignment? How long does that take, do you think?

也許只是對他們之間最大的桶的一些想法？然後，我想，就在你看明年的時候，你給了我們一些形狀的庫存，在第三季度達到 40 多歲，在第四季度末達到 30 多歲？您如何看待庫存趨於一致？這需要多長時間，你覺得呢？

Yes, Michael, great questions. I'll dive in first on the gross margin. So for Q3, we gave outlook that we expect to be down 550 to 600 basis points. The largest is definitely the assumed continued elevated promotional activities. That's probably roughly in the range of 3 points. And then I would say kind of the middle or medium-sized drivers. One would be the shifts in channel mix, which is going to be a little bit more distributor base just based on timing of that business. But overall, the channel mix is probably somewhere around 1 or 100 basis points.

是的，邁克爾，很好的問題。我將首先介紹毛利率。因此，對於第三季度，我們給出的展望是我們預計將下降 550 至 600 個基點。最大的肯定是假設的持續提升的促銷活動。這大概在3分的範圍內。然後我會說是中型或中型司機。一個是渠道組合的轉變，僅基於該業務的時間安排，這將成為更多的分銷商基礎。但總的來說，渠道組合可能在 1 或 100 個基點左右。

The FX is continuing to be a pretty big headwind for us. That's probably in the range of about 100 basis points for Q3 as well. So that right there is definitely the lion's share. The footwear mix being higher is a smaller headwind as I mentioned earlier on the call. And then we'll actually see a little bit of an offset, a little bit of a tailwind from freight costs in Q3, not much. But as those rates are coming down and air freight utilization is also coming down, that actually starts to become a little bit of a tailwind for us in Q3. So largest again, is the promotional levels and then kind of the medium factors are going to be channel mix and foreign currency.

外匯對我們來說仍然是一個很大的逆風。對於第三季度，這也可能在大約 100 個基點的範圍內。所以這絕對是最大的份額。正如我之前在電話會議上提到的，鞋類組合較高是一個較小的逆風。然後我們實際上會看到第三季度貨運成本的一點點抵消，一點點順風，不多。但隨著這些費率的下降和空運利用率的下降，這實際上開始成為我們第三季度的一點順風。同樣最大的是促銷水平，然後是渠道組合和外匯。

As we step into Q4, we would anticipate that the remaining largest headwind is still going to be foreign currency. And to your point, the promotional activity is still going to be a headwind, but we don't see it being as large as what we anticipate here for the current Q3. And then, again, product mix with footwear assumed to be a higher growth in apparel is a little bit of a headwind. And then the tailwind from freight cost actually gets larger and becomes a bigger factor to help offset. So that's kind of how you get to the expectation of being down 100 to 150 in Q4. So hopefully, that gives you some good color there.

隨著我們進入第四季度，我們預計剩餘的最大阻力仍將是外匯。就您的觀點而言，促銷活動仍將是逆風，但我們認為它不會像我們對當前第三季度的預期那麼大。然後，再一次，鞋類的產品組合被認為是服裝的更高增長，這有點逆風。然後運費成本的順風實際上變得更大，並成為幫助抵消的更大因素。所以這就是你如何達到第四季度下降 100 到 150 的預期。所以希望這能給你一些好的顏色。

And then relative to next year with inventory, we're not giving details yet on that. But we do feel that as we're going through the back half of this year, even though the growth rates are a little bit higher, we're doing it off of a super lean base last year, and now we're getting more towards kind of the right level of inventory for our business. But at the end of the day, we're probably going to be focusing more on inventory turns than just the growth rates and wanting to be able to make sure we stay above 3 as we run out this year and then continuing to start driving that up as we go forward to get to a better place as we get past some of the market challenges.

然後相對於明年的庫存，我們還沒有提供詳細信息。但我們確實覺得，隨著我們正在經歷今年下半年，即使增長率有點高，我們去年是在一個超級精益的基礎上做的，現在我們得到了更多為我們的業務制定合適的庫存水平。但歸根結底，我們可能會更多地關注庫存周轉率，而不僅僅是增長率，並希望能夠確保我們在今年用完時保持在 3 以上，然後繼續開始推動這一點當我們克服一些市場挑戰時，我們會繼續前進以達到更好的地方。

But we feel good about where our inventory is. Again, as Colin mentioned earlier, it's fairly healthy, more current product. We believe our outlet stores can handle the excess very well with a small percentage going to the off-price channel, and we'll keep managing that balance in the most premium way as we go into next year as well.

但我們對我們的庫存在哪裡感覺很好。同樣，正如 Colin 之前提到的，它是相當健康、更現代的產品。我們相信我們的直銷店可以很好地處理多餘的部分，一小部分進入折扣渠道，我們將在明年繼續以最優質的方式管理這種平衡。

Yes. And just to close it out, I mean, I think the work we've done on managing gross margin and inventory has left us in a strong position to kind of close out the year and think about what that means for 2024 as well. I think the work when we look at brand consideration and the way in which we believe we're still continuing to resonate with consumers, and we look at the work we're doing around the strategic shift in kind of making this pivot to growth that brings with it a certain swagger and a certain confidence that it's starting to grow across the business as well. I think we feel as if we're well positioned to kind of close out the year and grow into 2024. So yes, thank you first. Thank you for your time today. I appreciate the questions, Michael.

是的。只是為了結束它，我的意思是，我認為我們在管理毛利率和庫存方面所做的工作使我們處於有利位置，可以結束這一年並考慮這對 2024 年意味著什麼。我認為當我們著眼於品牌考慮以及我們認為我們仍在繼續與消費者產生共鳴的方式時所做的工作，並且我們著眼於我們圍繞戰略轉變所做的工作，以使這種轉向增長的樞軸帶來了一定的招搖和一定的信心，它也開始在整個業務中增長。我認為我們感覺好像我們已經準備好結束這一年並成長到 2024 年。所以，是的，首先謝謝你。謝謝你今天的時間。我很欣賞這些問題，邁克爾。

Thank You. That will conclude our call today. I appreciate everybody's participation. Thank you, operator.

謝謝你。這將結束我們今天的電話會議。我感謝大家的參與。謝謝你，接線員。

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

謝謝你。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。