威富公司 (VFC) 2024 Q1 法說會逐字稿

Greetings, and welcome to VF Corporation First Quarter 2024 Earnings Call. (Operator Instructions). As a reminder, this conference is being recorded.

您好，歡迎參加 VF Corporation 2024 年第一季度財報電話會議。 （操作員說明）。提醒一下，本次會議正在錄製中。

At this time, I would like to hand the call over to Allegra Perry, Vice President of Investor Relations. Thank you. You may begin.

現在，我想將電話轉交給投資者關係副總裁 Allegra Perry。謝謝。你可以開始了。

Good afternoon, and welcome to VF Corporation's First Quarter Fiscal 2024 Conference Call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.

下午好，歡迎參加 VF Corporation 2024 財年第一季度電話會議。今天電話會議的參與者將發表前瞻性聲明。這些陳述基於當前的預期，並受到可能導致實際結果存在重大差異的不確定性的影響。這些不確定性在定期向 SEC 提交的文件中有詳細說明。

Unless otherwise noted, amounts referred to on today's call will be on an adjusted constant dollar basis, which we've defined in the press release that was issued this afternoon and which we use as lead numbers in our discussion because we believe they more accurately represent the true operational performance and underlying results of our business.

除非另有說明，今天電話會議中提到的金額將以調整後的固定美元為基礎，我們在今天下午發布的新聞稿中對此進行了定義，並且我們在討論中將其用作主要數字，因為我們相信它們更準確地代表了我們業務的真實運營績效和基本成果。

You may also hear us refer to reported amounts, which are in accordance with U.S. GAAP. Reconciliations of GAAP measures to adjusted amounts 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提到根據美國公認會計原則 (U.S. GAAP) 計算的報告金額。新聞稿中包含的補充財務表格可以找到 GAAP 衡量指標與調整金額的調節表，該表格確定並量化了所有排除項目，並提供了管理層關於為何此信息對投資者有用的看法。

Joining me will be VF's President and Chief Executive Officer, Bracken Darrell; and EVP and Chief Financial Officer, Matt Puckett. Matt will then host the question-and-answer session and will be joined by several VF executives. I'll now hand over to Bracken.

與我一起出席的還有 VF 總裁兼首席執行官 Bracken Darrell；執行副總裁兼首席財務官馬特·帕克特 (Matt Puckett)。隨後，Matt 將主持問答環節，幾位 VF 高管也將參加。現在我將把任務交給布雷肯。

Hello, everyone. I'm happy to join my first conference call with VF as CEO. While my role today will be a little more limited than what I'm used to, given I'm on my 12th day here, I am super excited to be here. VF's portfolio of globally powerful and iconic brands, deeply embedded purpose and impressive talent all give me a lot of confidence. These are the key ingredients needed to unlock the company's significant value potential and return to strong, sustainable and profitable growth.

大家好。我很高興作為首席執行官參加 VF 的第一次電話會議。雖然我今天的角色比我習慣的要有限一些，但考慮到這是我在這裡的第 12 天，我非常高興來到這裡。 VF 的全球強大和標誌性品牌組合、根深蒂固的目標和令人印象深刻的人才都給了我很大的信心。這些是釋放公司巨大價值潛力並恢復強勁、可持續和盈利增長所需的關鍵要素。

I joined VF after 10 years as CEO of Logitech, where I'm proud to have overseen the transformation of the company that grew its value tenfold. We did it by putting the customer at the center of everything we do. I'm passionate about building brands through a design and innovation focus. With unique products and immersive storytelling, consumer experience is elevated and so is growth.

我在羅技 (Logitech) 擔任首席執行官 10 年後加入 VF，我很自豪能夠監督這家公司的轉型，使其價值增長十倍。我們通過將客戶置於我們所做的一切的中心來做到這一點。我熱衷於通過設計和創新來打造品牌。憑藉獨特的產品和身臨其境的故事講述，消費者體驗得到提升，增長也隨之提升。

While I'm just roughly 10 days in, I already feel at home here. I've spent time in our offices in Denver, meeting with our brands based here and with many, many VF associates. I visited our European team in Stabio, and I'll be in Costa Mesa at the Vans offices tomorrow morning. I've been in our stores in Denver, San Francisco, New York, London and more cities. I've been in 3 of our Supreme stores around the world and many Vans and North Face stores. I talk to customers everywhere I go, and I started to dig into the brand equity data.

雖然我剛來這里大約十天，但我已經在這裡感到賓至如歸了。我在丹佛的辦公室里呆了一段時間，與我們駐紮在這裡的品牌以及許多 VF 同事進行了會面。我拜訪了位於斯塔比奧的歐洲團隊，明天早上我將前往科斯塔梅薩的 Vans 辦公室。我去過我們在丹佛、舊金山、紐約、倫敦和更多城市的商店。我去過世界各地的 3 家 Supreme 商店以及許多 Vans 和 North Face 商店。我到處與客戶交談，並開始深入研究品牌資產數據。

My conclusion is that our brands are as strong as I expected. Our team is loaded with talent. Our business is simply not performing at the level equal to those, but it's because of things in our control. I feel a strong sense of urgency with respect to the challenges that we face and will collectively work with the team to get VF back on track through disciplined and thoughtful actions. I'm looking forward to speaking with all of you again at our Q2 earnings results to share my perspectives on my first few months in the role. This company has what it takes, and I'm excited about the future of VF and its ability to return to delivering strong shareholder returns.

我的結論是，我們的品牌正如我預期的那樣強大。我們的團隊人才濟濟。我們的業務根本沒有達到與這些水平相同的水平，但這是因為我們可以控制的事情。我對我們面臨的挑戰感到強烈的緊迫感，並將與團隊共同努力，通過紀律嚴明和深思熟慮的行動，讓 VF 重回正軌。我期待著在我們第二季度的盈利結果中再次與大家交談，分享我對我擔任該職位的頭幾個月的看法。這家公司具備所需的條件，我對 VF 的未來及其重新為股東帶來豐厚回報的能力感到興奮。

I'll now turn it over to Matt to talk you through the quarter.

現在我將把它交給馬特來向您介紹本季度的情況。

Thank you, Bracken, and welcome to VF. Your impressive track record and strong background in innovation and design brings a new dimension to leading VF and reinforces my confidence as we turn the page to our next dynamic chapter. I also wanted to extend our gratitude to Benno, who's been instrumental in laying a solid foundation for VF's return to strong, sustainable and profitable growth by refocusing our efforts towards the consumer and by taking aggressive actions to strengthen the business operationally and financially, and personally, a great partner to me. We are fortunate to have him continuing as a valued member of the VF Board. I'm more confident than ever that with Bracken as our new leader, VF has everything it takes to succeed in the future.

謝謝你，布雷肯，歡迎來到 VF。你們令人印象深刻的業績記錄以及在創新和設計方面的強大背景為領導 VF 帶來了新的維度，並在我們翻開下一個充滿活力的篇章時增強了我的信心。我還想向 Benno 表示感謝，他將我們的努力重新集中在消費者身上，並採取積極行動，在運營、財務和個人方面加強業務，為 VF 恢復強勁、可持續和盈利增長奠定了堅實的基礎。 ，我的一個很好的合作夥伴。我們很幸運讓他繼續擔任 VF 董事會的重要成員。我比以往任何時候都更有信心，隨著 Bracken 作為我們的新領導者，VF 擁有未來成功所需的一切。

Before I get into the business and financial results, let me give you an update on our 2 most important near-term priorities that we've been highlighting in recent quarters: the supply chain and Vans. First, in the supply chain, where we saw further progress during the quarter as industry conditions continued to improve and our own actions to address execution yielded results. Lead times ended the quarter at normalized levels, while our on-time performance and in-stock percentages were both back in line with our targets. We are appreciative of the quick and aggressive actions taken by the supply chain and brand teams to position us to now consistently meet our customers' expectations and maximize on the opportunities that present themselves in season.

在介紹業務和財務業績之前，讓我先向您介紹一下我們最近幾個季度一直強調的兩個最重要的近期優先事項的最新情況：供應鍊和 Vans。首先，在供應鏈方面，隨著行業狀況持續改善以及我們自己解決執行問題的行動取得了成果，我們在本季度看到了進一步的進展。本季度末的交貨時間達到正常水平，而我們的準時績效和庫存百分比均回到了我們的目標。我們感謝供應鍊和品牌團隊採取的快速而積極的行動，使我們能夠始終如一地滿足客戶的期望，並最大限度地利用當季出現的機會。

Next, Vans, which was down 22% in the quarter and was disproportionately impacted by the brand's wholesale business in the Americas, which was down 40% as anticipated. This includes intentional actions we've taken to rightsize inventories in advance of the important back-to-school season. We were encouraged by the results in China and in the digital business, which have both meaningfully improved relative to the prior quarter's trend versus last year. While the brand's overall performance was largely anticipated, it's not where we should be, and we remain intently focused on the actions to turn around the brand.

接下來是 Vans，該季度銷售額下降了 22%，並且受到該品牌在美洲的批發業務的影響不成比例，該業務按預期下降了 40%。這包括我們在重要的返校季節之前採取的有意調整庫存規模的行動。我們對中國和數字業務的業績感到鼓舞，與去年相比，這些業務與上一季度的趨勢相比都有了顯著的改善。雖然該品牌的整體表現在很大程度上是預期的，但這並不是我們應該達到的水平，我們仍然專注於扭轉品牌的行動。

Now an update on the key focus areas of product, consumer and go-to-market. First and foremost, product. We're increasing our level of investments to create new relevant products that excite consumers while developing existing franchise that are working well. UltraRange and MTE silhouettes continue to outperform, growing 13% and 39% in the quarter, respectively, with newer lines, including Knu Skool and Lowland all generating strong sell-throughs. The soft launch of the pinnacle range, OTW, during Paris Fashion Week in June created excitement and energy, laying the groundwork for the full launch in early 2024.

現在介紹產品、消費者和上市等關鍵關注領域的最新情況。首先也是最重要的，產品。我們正在增加投資水平，以創造新的相關產品來刺激消費者，同時開發運作良好的現有特許經營權。 UltraRange 和 MTE 款式繼續表現出色，本季度分別增長 13% 和 39%，Knu Skool 和 Lowland 等新產品線均產生了強勁的銷量。頂峰系列 OTW 在 6 月巴黎時裝週期間試發布，引發了興奮和活力，為 2024 年初的全面發布奠定了基礎。

Another key focus area we've shared previously is an opportunity to better understand and integrate the consumer into our decision-making. Our significant global segmentation refresh is on track. And in the meantime, our Vans Family membership keeps growing, now approaching 29 million members, adding 1 million members in Q1 and more than doubling in 2 years.

我們之前分享的另一個重點領域是更好地了解消費者並將其納入我們決策的機會。我們重要的全球細分更新正在按計劃進行。與此同時，我們的 Vans Family 會員數量不斷增長，目前已接近 2900 萬會員，第一季度新增 100 萬會員，兩年內增加了一倍多。

We continue to improve the Vans go-to-market activities. Our initiative to sharpen our focus around fewer key products and stories are well underway and are benefiting the quality and productivity of our store assortment, with our in-store SKU reduction actions expected to be fully completed in August. We'll also be launching our redesigned vans.com platform in time for the holiday season.

我們繼續改進 Vans 的上市活動。我們旨在加強對更少關鍵產品和故事的關注的舉措正在順利進行，並且有利於我們商店品種的質量和生產力，我們的店內 SKU 減少行動預計將在 8 月份全面完成。我們還將在假期期間及時推出重新設計的 vans.com 平台。

Vans is a great brand, and we're confident in its enduring strength and importantly, the energy and intensity that this leadership team is bringing to the effort every day.

Vans 是一個偉大的品牌，我們對其持久的實力充滿信心，更重要的是，對這個領導團隊每天所付出的精力和強度充滿信心。

Now turning to a review of the quarter. Q1, our smallest quarter and facing the toughest prior year compare, came in line with our expectations, both on the top and bottom lines. That said, overall, our performance was not up to the standard we expect to achieve. Revenue was down 8%, in line with guidance, and wholesale particularly pressured the top line in the U.S. On a 2-year basis, revenue was about flat.

現在轉向對本季度的回顧。第一季度是我們規模最小的季度，與去年相比也面臨著最艱難的情況，無論是營收還是利潤都符合我們的預期。也就是說，總的來說，我們的表現沒有達到我們預期的標準。收入下降了 8%，與指導一致，批發業務對美國的營收尤其造成壓力。兩年來，收入基本持平。

Let me first unpack the performance by region. Revenue in the Americas region was down 15% in the quarter primarily due to the wholesale channel pressures we outlined in May. These had an impact across most of the portfolio, and in particular, Vans and Dickies. The quarter's results were impacted by the rightsizing of inventories across the channel and the implications of our poor customer service from last fall.

讓我首先按地區分析一下表現。本季度美洲地區的收入下降了 15%，主要是由於我們在 5 月份概述的批發渠道壓力。這些對大多數產品組合產生了影響，尤其是 Vans 和 Dickies。本季度的業績受到整個渠道庫存規模調整以及去年秋季客戶服務不佳的影響。

Our business in EMEA, which as you know has grown consistently and strongly, also saw softer trends in the quarter with revenue in the region down 3% in Q1, driven by a high single-digit decline in wholesale as retailers grew more cautious. Our direct-to-consumer business was up mid-single digits in the quarter, a sign of resilient consumer demand for our brands and evidence of our continued strong execution of integrated go-to-market strategies.

如您所知，我們在歐洲、中東和非洲地區的業務一直持續強勁增長，但在本季度也出現了疲軟的趨勢，第一季度該地區的收入下降了 3%，原因是零售商變得更加謹慎，批發業務出現了大幅個位數下降。本季度我們的直接面向消費者業務增長了中個位數，這表明消費者對我們品牌的需求具有彈性，也證明了我們持續強有力地執行綜合上市戰略。

Last, we continue to see growing momentum in the APAC region with revenue up 18%. All channels grew by double digits in the region with DTC fueled by brick-and-mortar traffic growth. Greater China saw further acceleration of 31% and benefited from the comparison to the prior year lockdown impacts. The North Face continues to be the key driver of our performance and was up more than 50% in Greater China, benefiting from outdoor market tailwinds and recovering domestic travel.

最後，我們繼續看到亞太地區的增長勢頭，收入增長了 18%。該地區所有渠道均實現兩位數增長，其中 DTC 受到實體流量增長的推動。與上一年封鎖影響相比，大中華區的增速進一步加快了 31%。 The North Face 仍然是我們業績的主要推動力，受益於戶外市場的順風和國內旅遊的複蘇，大中華區的業績增長超過 50%。

Now let me complete the picture of the brand's performance, starting with The North Face, where revenue was up 12% in the quarter against a tough prior year compare of plus 37% and driven by broad-based growth across products, channels and regions. Globally, high demand for our icons, as an example, the Base Camp Duffel as well as the Voyager pack line, generated very strong performance, aided by the summer travel season. Our lifestyle product, the Urban Exploration line, and our rainwear also saw good momentum. Growth was led by DTC driven by digital as the brand's product innovation and sharp execution resonated with consumers.

現在讓我完整地描述一下該品牌的業績，首先從 The North Face 開始，在產品、渠道和地區的廣泛增長的推動下，該季度的收入增長了 12%，而去年同期則增長了 37%。在全球範圍內，對我們標誌性產品（例如 Base Camp Duffel 和 Voyager 背包系列）的高需求在夏季旅遊旺季的幫助下產生了非常強勁的表現。我們的生活方式產品、城市探索系列和雨衣也取得了良好的發展勢頭。數字化驅動的 DTC 引領了增長，因為該品牌的產品創新和敏銳的執行力引起了消費者的共鳴。

Timberland was down 6% in the quarter, in line with our expectations. The brand was up against a tougher prior year compare, and results were impacted by wholesale in the Americas as partners continued to reduce inventory levels. Results were positive in the other 2 regions. Globally, product innovation is resonating as the new hiking silhouette, Motion 6, delivered outsized sell-through performance, and we made good progress on women's with strong growth in sandals and apparel for her.

Timberland 本季度下跌 6%，符合我們的預期。與去年相比，該品牌面臨著更為嚴峻的形勢，隨著合作夥伴繼續降低庫存水平，業績受到美洲批發的影響。其他 2 個地區的結果也呈陽性。在全球範圍內，產品創新引起了共鳴，新的徒步鞋款 Motion 6 實現了超額的銷售業績，我們在女裝方面取得了良好進展，涼鞋和女裝的銷量強勁增長。

Dickies' results were disappointing and significantly challenged during the quarter, down 19%, as the Work segment continues to be impacted by a weaker value in consumer, primarily in the U.S. Soft results in the Americas and APAC were partially offset by continued growth in Europe. Importantly, we have made progress in rightsizing inventory levels in the channel.

Dickies 的業績令人失望，本季度面臨重大挑戰，下降了 19%，因為工作部門繼續受到消費者價值疲軟（主要是美國）的影響。美洲和亞太地區的疲軟業績被歐洲的持續增長部分抵消。重要的是，我們在調整渠道庫存水平方面取得了進展。

Moving down the P&L. Q1 gross margin was down 130 basis points. As expected, business mix remained a positive contributor to margin in the quarter, up 80 basis points, driven primarily by DTC and international growth. Rate was down 200 basis points, more than offsetting mix benefits, reflecting the ongoing impact of higher promotions. It's worth noting the negative impact is about 1/3 of what it was over the previous 2 quarters; also, higher product costs, which are moderating and which were partially offset by strategic pricing actions; and finally, negative currency impacts. Adjusted operating margin was down 380 basis points, reflecting the impact of the lower gross margin and SG&A deleverage.

損益表向下移動。第一季度毛利率下降 130 個基點。正如預期的那樣，業務組合仍然對本季度利潤率做出了積極貢獻，增長了 80 個基點，這主要是由 DTC 和國際增長推動的。利率下降了 200 個基點，足以抵消混合效益，反映出更高的促銷活動的持續影響。值得注意的是，負面影響約為前兩個季度的1/3；此外，產品成本上升，該成本正在放緩，並被戰略性定價行動部分抵消；最後是負面的貨幣影響。調整後營業利潤率下降 380 個基點，反映了毛利率下降和 SG&A 去槓桿化的影響。

SG&A declined versus last year by 3% in constant dollars, which exhibits our focus on reducing costs and managing the P&L in times when the revenue line is under pressure. SG&A deleveraged 250 basis points in the quarter, reflecting DTC and other fixed cost deleverage in addition to the impact of continued strategic investments in technology, marketing and distribution. Q1 loss per share was $0.15, also impacted by elevated interest expense and a modestly negative impact from tax.

按不變美元計算，SG&A 與去年相比下降了 3%，這表明我們在收入線面臨壓力時專注於降低成本和管理損益。本季度 SG&A 去槓桿化了 250 個基點，除了技術、營銷和分銷方面持續戰略投資的影響外，還反映了 DTC 和其他固定成本去槓桿化。第一季度每股虧損為 0.15 美元，這也受到利息支出增加和稅收適度負面影響的影響。

Turning to the balance sheet and cash flow. I'll start with inventory, where we saw further sequential progress in improving the overall health of our inventory position, ending the quarter slightly ahead of our plan, with inventories up 19% versus last year compared to organic growth of up 46% at the end of the fiscal year and up 75% the quarter before that. The increase in inventory now represents a true organic comparison as we fully lap the impact of the supply chain financing program implemented in Q1 of fiscal '23. Inventory composition remains primarily core, carryover and replenishment, which has a higher likelihood of being sold at full price or with a minimal markdown.

轉向資產負債表和現金流量。我將從庫存開始，我們看到在改善庫存狀況的整體健康狀況方面取得了進一步的連續進展，本季度結束時略高於我們的計劃，庫存比去年增長了 19%，而同期有機增長率為 46%。財年末增長了 75%，上一季度增長了 75%。庫存的增加現在代表了真正的有機比較，因為我們完全接受了 23 財年第一季度實施的供應鏈融資計劃的影響。庫存構成仍然主要是核心庫存、結轉庫存和補貨庫存，這些庫存更有可能以全價或最低降價出售。

Cash from operations, which, as a reminder, is also benefiting from the extension of payment terms as part of the supply chain financing program, was $164 million in the quarter. We knew the quarter was roughly $3 billion in liquidity, in line with our plan and about flat to the end of the fiscal year, with free cash flow of $79 million, in essence offset by the dividend payment of $117 million.

需要提醒的是，本季度的運營現金為 1.64 億美元，該現金也受益於作為供應鏈融資計劃一部分的付款期限的延長。我們知道本季度的流動性約為 30 億美元，符合我們的計劃，並且到本財年末基本持平，自由現金流為 7,900 萬美元，實質上被 1.17 億美元的股息支付所抵消。

As it relates to the outlook, before I unpack the numbers, let me give you a little context for how we see the balance of the year evolving. We see several areas of strength worth calling out, which gives us confidence as we look forward. The North Face is maintaining strong momentum, and we expect this to continue with investments being made to further fuel this growth. Our China business is gaining momentum, and we believe our brands have significant growth opportunities in this market where we are underpenetrated.

由於它與前景相關，因此在我解開這些數字之前，讓我先向您介紹一下我們如何看待今年的平衡變化。我們看到了幾個值得強調的優勢領域，這讓我們對未來充滿信心。 The North Face 保持著強勁的勢頭，我們預計這種勢頭將繼續下去，並進行投資以進一步推動這種增長。我們的中國業務正在蓬勃發展，我們相信我們的品牌在這個我們尚未滲透的市場中擁有巨大的增長機會。

Certainly, the outdoor and travel part of the market continues to be strong, and The North Face, as the #1 international outdoor brand in China, is driving and benefiting from that trend. Our DTC trends in EMEA remain strong, and in fact, comp growth has accelerated in June and July. Finally, we are seeing an improved performance in the supply chain, which will allow us to deliver the planned cash flow benefit from reducing inventories and capitalize on revenue opportunities as they present themselves through the balance of the year.

當然，戶外和旅行市場持續強勁，而The North Face作為中國排名第一的國際戶外品牌，正在推動這一趨勢並從中受益。我們在歐洲、中東和非洲地區的 DTC 趨勢依然強勁，事實上，6 月和 7 月的比較增長有所加速。最後，我們看到供應鏈的績效有所改善，這將使我們能夠通過減少庫存來實現計劃的現金流量效益，並在今年剩餘時間裡抓住收入機會。

However, we continue to face a few meaningful headwinds. Vans performance remains difficult as work to turn around the brand continues with a great deal of urgency. Our wholesale business, particularly in the U.S., remains challenging as our key partners maintain a more cautious stance on forward orders. And the Work segment of the Dickies business has remained softer for longer than we anticipated.

然而，我們仍然面臨一些有意義的阻力。 Vans 的業績表現依然困難重重，品牌扭虧為盈的工作仍然十分緊迫。由於我們的主要合作夥伴對遠期訂單保持更加謹慎的立場，我們的批發業務（尤其是在美國）仍然面臨挑戰。 Dickies 業務的工作部門持續疲軟的時間比我們預期的要長。

It's still early in the year and our teams across the business are working diligently to maximize the opportunities our brands have to deliver compelling experiences and products to consumers across channels. And we have great confidence that we'll see progressively improving results.

現在還處於今年年初，我們的整個業務團隊正在努力工作，以最大限度地利用我們的品牌為跨渠道的消費者提供引人注目的體驗和產品的機會。我們非常有信心看到結果逐步改善。

Now moving on to the specifics of our updated outlook. We are revising our full year revenue expectations to be modestly down to flat as we take a more conservative posture on the balance of the year. The reason for the change in revenue outlook is based primarily on wholesale. Despite the progress made in lowering inventory levels, our wholesale business remains pressured. While our sell-out trends are evolving favorably in the Outdoor segment in particular, sell-in is challenged across the segments. Through the balance of the year, our order books have evolved a little more muted than previously anticipated in both the U.S. and Europe and reflect the continued cautious posture by many of our partners. This has affected brands across the portfolio and (inaudible) disproportionately to Vans.

現在繼續討論我們更新後的展望的細節。由於我們對今年剩餘時間採取更加保守的態度，因此我們正在將全年收入預期適度下調至持平。收入前景變化的原因主要是批發。儘管在降低庫存水平方面取得了進展，但我們的批發業務仍然面臨壓力。儘管我們的銷售趨勢在戶外領域尤其發展良好，但各個領域的銷售都面臨著挑戰​​。今年剩下的時間裡，我們在美國和歐洲的訂單比之前預期的要少一些，這反映出我們許多合作夥伴持續保持謹慎的態度。這影響了整個產品組合中的品牌，（聽不清）對 Vans 的影響尤為嚴重。

As a result, we now expect wholesale across VF to be down mid- to high single digits for the year, with most of that pressure coming in our Americas business and, to a lesser extent, in Europe. Alongside this, however, we are encouraged by the trends in our DTC business, and we continue to expect growth in this channel during the year, including in the U.S.

因此，我們現在預計今年整個 VF 的批發量將下降中高個位數，其中大部分壓力來自我們的美洲業務，其次是歐洲業務。然而，除此之外，我們的 DTC 業務趨勢令我們感到鼓舞，我們繼續預計這一渠道將在今年實現增長，包括在美國。

Overall, for VF, we continue to expect a better second half revenue performance relative to the first half, reflecting an improving wholesale performance, moderating declines at Vans and easing prior year compares as we move to the back part of the year, considering the challenges we faced last year and our own core execution, which muted our performance.

總體而言，對於 VF 而言，考慮到挑戰，我們繼續預計下半年收入表現將優於上半年，這反映出批發業績的改善、Vans 的下滑放緩以及去年下半年的情況有所緩解。去年我們面臨著我們自己的核心執行力，這削弱了我們的表現。

We are maintaining our EPS guidance range of $2.05 to $2.25 for the year. As a reminder, this includes a higher level of interest and a higher tax rate. It's worth highlighting that the underlying operating earnings are anticipated to grow faster than EPS.

我們維持今年 EPS 指導範圍為 2.05 美元至 2.25 美元。提醒一下，這包括更高的利息和更高的稅率。值得強調的是，預計基本營業收入的增長速度將快於每股收益。

We achieved our earnings target in Q1 and highlight that we have a number of levers across margins and spending to protect profitability. We continue to appropriately manage our cost and inventory position in order to protect the P&L and the balance sheet. We are increasingly confident in our ability to deliver higher gross margins. The year-to-go period will benefit from moderating promotions as we lapped last year's impacts; clearer visibility to easing product costs, including freight; and increasingly favorable mix, reflecting the outperformance and strength of our DTC and international businesses.

我們實現了第一季度的盈利目標，並強調我們在利潤率和支出方面擁有多種槓桿來保護盈利能力。我們繼續適當管理我們的成本和庫存狀況，以保護損益表和資產負債表。我們對實現更高毛利率的能力越來越有信心。由於我們已經克服了去年的影響，今年餘下的時間段將受益於促銷活動的放緩；更清晰地了解降低產品成本（包括運費）；以及日益有利的組合，反映了我們 DTC 和國際業務的卓越表現和實力。

This guidance takes into account our continued commitment to, first, investing in key capabilities where we continue to see opportunities to fuel organic growth and focus on areas that create value for our customers and consumers. Let me give you some examples: product innovation and demand creation at The North Face with a higher spend as a percent of revenue; the opening of the Ontario, California distribution center, our most highly automated facility that will allow us to more efficiently service orders and which will generate cost savings over time at full scale; the enhancement of our consumer-facing digital ecosystem with the launch of an updated digital platform in the U.S. to which most of our brands have now migrated.

該指南考慮到我們的持續承諾，首先，投資關鍵能力，我們繼續看到推動有機增長的機會，並專注於為客戶和消費者創造價值的領域。讓我舉幾個例子：The North Face 的產品創新和需求創造，支出佔收入的比例更高；加利福尼亞州安大略省配送中心的開業，這是我們自動化程度最高的設施，將使我們能夠更有效地服務訂單，並隨著時間的推移全面節省成本；通過在美國推出更新的數字平台來增強我們面向消費者的數字生態系統，我們的大多數品牌現已遷移到該平台。

Second, we continue to reduce costs aggressively where it's not adding value for the consumer. And some examples here include: stopping technology spending that is not consumer-facing or impacting; aggressively optimizing our distribution capacity considering reduced unit sales volumes; and pausing discretionary spending, as an example, open roles that are not critical to revenue-driving activities and brand building strategies.

其次，我們繼續積極降低成本，而不是為消費者增加價值。這裡的一些例子包括：停止不面向消費者或不影響消費者的技術支出；考慮到單位銷量的減少，積極優化我們的分銷能力；例如，暫停可自由支配支出，開放對創收活動和品牌建設戰略並不重要的職位。

Now let me give you a couple of updates on the drivers of cash flow. We continue to expect free cash flow in line with our plan, driven both by growth in cash earnings and a reduction in working capital, primarily from activities to reduce inventory levels and recognizing the full benefit of revised payment terms with our product suppliers as we migrate through fiscal year '24. Importantly, we expect inventory to be near to normalized levels by the end of this calendar year and down at least 10% year-over-year at the end of the fiscal year, which would equate to a reduction of about $250 million. We maintained tight control and discipline on all capital spending. And in light of business conditions, we paused lower priority projects.

現在讓我向您介紹一些有關現金流驅動因素的最新情況。我們繼續預計自由現金流符合我們的計劃，這得益於現金收入的增長和營運資金的減少，主要來自降低庫存水平的活動，以及認識到我們遷移時與我們的產品供應商修改付款條件的全部好處到 '24 財年。重要的是，我們預計庫存將在本日曆年底接近正常水平，並在本財年結束時同比至少下降 10%，這相當於減少約 2.5 億美元。我們對所有資本支出保持嚴格的控制和紀律。根據業務狀況，我們暫停了優先級較低的項目。

Moving on to debt. We remain laser-focused on reducing our leverage. While we have ample liquidity and financial flexibility to pursue our key priorities, our #1 financial objective is to return VF to our historical balance sheet strength. Accordingly, we will use any excess free cash flow to reduce debt. You can be sure that any strategic decision we are making is through this plan. We expect to end this fiscal year with gross leverage of about 4x, and we'll continue to make progress on the path to moving toward our target of 2.5x.

繼續討論債務。我們仍然專注於降低杠桿率。雖然我們擁有充足的流動性和財務靈活性來實現我們的主要優先事項，但我們的第一大財務目標是使 VF 恢復到我們歷史上的資產負債表實力。因此，我們將利用任何多餘的自由現金流來減少債務。您可以確信我們所做的任何戰略決策都是通過該計劃進行的。我們預計本財年結束時總槓桿率約為 4 倍，並且我們將繼續在實現 2.5 倍目標的道路上取得進展。

Now you may have noticed I haven't talked a lot about the macro environment in my comments. We remain intently focused on our own issues and on what we can control. And so much of what we have to do relies on fixing those issues. At the same time, we're not oblivious to the external conditions, and they do inform our near-term tactics and strategies.

現在你可能已經註意到，我在評論中並沒有過多談論宏觀環境。我們仍然專注於我們自己的問題和我們可以控制的事情。我們要做的很多事情都依賴於解決這些問題。與此同時，我們並沒有忽視外部條件，它們確實為我們的近期策略和戰略提供了信息。

The environment itself remains difficult and volatile. We recognize that many consumers are feeling impacts to their disposable income and are continuing to deal with inflation, facing higher interest rates and in the U.S., the upcoming end to the student loan calls.

環境本身仍然困難且不穩定。我們認識到，許多消費者的可支配收入受到了影響，並繼續應對通貨膨脹、利率上升以及美國即將結束的學生貸款呼籲。

In summary, for fiscal year '24, we are slightly more cautious on the evolution of revenue but remain confident we will deliver increasing operating earnings to improve gross margins and strong cash flow, together enabling us to achieve our debt reduction targets, all leading to a strengthened financial position.

總之，對於 24 財年，我們對收入的變化稍微謹慎一些，但仍然有信心我們將實現不斷增長的營業收入，以提高毛利率和強勁的現金流，共同使我們能夠實現債務削減目標，所有這些都將導致財務狀況得到加強。

Finally, I'll give you an update on the Timberland tax case, the latest development being that oral arguments occurred last week, which was sooner than we anticipated. This advanced time line indicates the First Circuit Appeals Court could issue an opinion as early as the next few months. We previously expected this vision could occur within this fiscal year, and in light of the pace at which the oral arguments preceded, it's now increasingly evident that this will be the case. We continue to believe the timing and treatment of the income inclusion at issue is appropriate.

最後，我將向您介紹 Timberland 稅務案件的最新情況，最新進展是上週發生了口頭辯論，這比我們預期的要早。這一提前的時間表表明第一巡迴上訴法院最早可能在未來幾個月內發表意見。我們之前預計這一願景可能會在本財年內實現，並且鑑於之前口頭辯論的速度，現在越來越明顯，情況將會如此。我們仍然認為，納入相關收入的時機和處理方式是適當的。

Looking ahead to the future, we are confident that we have all the right ingredients to succeed and to return to our standard of delivering superior shareholder returns driven by strong, sustainable and profitable growth. We have a portfolio of world-renowned and beloved brands, which are well positioned in big and growing spaces, that continue to benefit from macro consumer tailwinds. We've taken significant actions to strengthen our business operationally and financially. I'm confident these initiatives will yield tangible benefits.

展望未來，我們相信我們擁有取得成功的所有正確要素，並恢復在強勁、可持續和盈利增長的推動下提供卓越股東回報的標準。我們擁有一系列世界知名和深受喜愛的品牌，這些品牌在廣闊且不斷增長的空間中佔據有利地位，並繼續受益於宏觀消費者的推動。我們已採取重大行動來加強我們的業務運營和財務。我相信這些舉措將產生實實在在的效益。

We continue to work to drive improved product margins, including better go-to-market efficiencies, product cost optimization and strategic pricing actions. These near- and medium-term actions, combined with the ongoing focus to drive down costs, which are not consumer-facing, will support an expanding margin profile over time. We remain committed to our purpose, which is at the heart of everything we do, and we'll continue to remain sensitive to our culture and to our strategy. Our team of passionate, highly skilled and deeply committed associates continues to be a key asset to unlocking our full potential.

我們繼續努力提高產品利潤，包括提高上市效率、產品成本優化和戰略定價行動。這些近期和中期行動，加上持續關注降低成本（並非面向消費者），將支持隨著時間的推移不斷擴大的利潤狀況。我們仍然致力於我們的目標，這是我們所做一切的核心，我們將繼續對我們的文化和戰略保持敏感。我們的團隊充滿熱情、技術精湛且忠誠，仍然是釋放我們全部潛力的關鍵資產。

In closing, we can and we will better harness the power and strength of VF while continuing to focus on sharpening execution, optimizing earnings and cash flow and strengthening the balance sheet, all of which will enable VF to begin to fulfill its full potential this year and beyond.

最後，我們可以而且我們將更好地利用 VF 的力量和實力，同時繼續專注於提高執行力、優化收益和現金流以及強化資產負債表，所有這些將使 VF 在今年開始充分發揮其潛力超越。

With that, we'll now be joined by several members of the team to answer your questions: Martino Scabbia Guerrini, who runs our business in EMEA and APAC and in the emerging brands; and our brand leaders from Vans, The North Face, Timberland and Supreme, Kevin Bailey, Nicole Otto and Susie Mulder. We'll now open the line and take your questions.

現在，我們團隊的幾位成員將加入我們來回答您的問題：Martino Scabbia Guerrini，負責我們在歐洲、中東和非洲、亞太地區以及新興品牌的業務；以及 Vans、The North Face、Timberland 和 Supreme 的品牌領導者 Kevin Bailey、Nicole Otto 和 Susie Mulder。我們現在將開通電話並回答您的問題。

(Operator Instructions) Our first questions come from the line of Dana Telsey with Telsey Advisory Group.

（操作員說明）我們的第一個問題來自 Telsey Advisory Group 的 Dana Telsey。

Bracken, welcome. Given your experience at your former company, Logitech, what is most similar, what is most different as in the work to transform VF? And then, Matt, on the results today, it looks like wholesale was the weakness nearly everywhere. How much of it was the impact overall in the Americas and Europe? And how does it differ by brand?

布雷肯，歡迎。鑑於您在前公司 Logitech 的經歷，您在 VF 轉型工作中最相似、最不同的是什麼？然後，馬特，從今天的結果來看，批發似乎幾乎無處不在。對美洲和歐洲的整體影響有多大？不同品牌有何不同？

Thanks, Dana. I'm not quite ready to start to make comparisons between VF and Logitech. But I would just say the biggest surprise so far is how at home I feel, no surprises yet. So I'll update you more at the end of next quarter.

謝謝，達納。我還沒有準備好開始對 VF 和羅技進行比較。但我只想說，到目前為止最大的驚喜是我在家裡的感覺，還沒有驚喜。因此，我將在下季度末向您提供更多最新信息。

Yes. Dana, nice to speak with you. You're right. Most of the issues that we saw in our reported results certainly reside in the wholesale line, and that's kind of what we expected. I think we kind of talked about that in May. It is certainly an issue that's predominantly in the U.S. and in the Americas, to some degree in Europe. Obviously, APAC, not so much and APAC, the wholesale business is relatively smaller there.

是的。達納，很高興與你交談。你說得對。我們在報告結果中看到的大多數問題肯定都存在於批發產品線中，這正是我們所期望的。我想我們在五月份就討論過這個問題。這當然是一個主要存在於美國和美洲的問題，在某種程度上也存在於歐洲。顯然，亞太地區的批發業務相對較小。

If you look at it across brands, disproportionate impacts to Vans and Dickies, which continue to be the 2 businesses that are struggling the most from a sell-through and sell-out perspective. The North Face, generally pretty good and Timberland, some timing issues with both of those brands. If you look at the Outdoor segment, generally, I think you're going to see -- we see better results across the board, and that's certainly the case in the wholesale business. And again, we see the more difficult results in those couple of brands that we continue to have challenges from a sell-out perspective, and we've talked a lot about that.

如果你從各個品牌來看，Vans 和 Dickies 受到的影響不成比例，從銷量和售罄的角度來看，這兩家公司仍然是處境最艱難的兩家企業。 The North Face 總體上相當不錯，而 Timberland，這兩個品牌都存在一些時機問題。如果你看看戶外領域，一般來說，我想你會看到——我們全面看到更好的結果，批發業務當然就是這種情況。再次，我們看到這兩個品牌的結果更加困難，從銷售的角度來看，我們繼續面臨挑戰，我們已經對此進行了很多討論。

All of our brands are having some impact from what's happening in the wholesale channel, particularly in the U.S., as wholesalers are resetting inventories, and that's been underway, in many cases, making good progress. In other cases, it's taking a bit longer. And the kind of the cautious approach that they're taking to forward buys, we're seeing that affect all of our businesses. But clearly, when you have a business that's not selling through, you give them even more reason to potentially be very cautious and pull back, and we're seeing that certainly in the Vans business.

我們所有的品牌都受到批發渠道發生的事情的影響，特別是在美國，因為批發商正在重置庫存，而且在很多情況下，這種情況一直在進行，並取得了良好的進展。在其他情況下，需要更長的時間。我們看到他們對遠期購買採取的謹慎態度影響了我們所有的業務。但顯然，當你的業務銷售不暢時，你就會給他們更多的理由可能非常謹慎並退出，我們在 Vans 業務中肯定看到了這一點。

Got it. And just one follow-up. As we move through the year and maintaining the guidance, any puts and takes as you see it either top line or margin in the cadence of the remaining quarters?

知道了。只有一個後續行動。當我們度過這一年並維持指導時，您認為剩餘季度的節奏中是否有任何看跌期權和看跌期權，無論是頂線還是利潤率？

Yes. Sure thing. So from a top line perspective, it will sequentially get better. Q2 will be less negative than where we were in Q1. We said from the beginning the first half of the year will be relatively challenged given what we see in wholesale, and that stays the same. So we'll see sequential improvement as we move through the year.

是的。當然可以。因此，從營收角度來看，它會逐漸變得更好。第二季度的負面影響將小於第一季度。我們從一開始就說過，鑑於我們在批發方面看到的情況，今年上半年將面臨相對的挑戰，這一點保持不變。因此，隨著這一年的推移，我們將看到連續的改進。

From a profitability standpoint, we hit our targets in the first quarter, our internal targets from a profitability standpoint. In fact, we obviously hit kind of where we thought we'd be from a revenue standpoint.

從盈利能力的角度來看，我們在第一季度實現了我們的目標，從盈利能力的角度來看，我們實現了內部目標。事實上，從收入的角度來看，我們顯然已經達到了我們認為應該達到的水平。

When I step back and look at things, though, increasingly confident in our ability to drive higher gross margins this year. And as we look at where we sit from an inventory standpoint, we're making really good progress, a little bit ahead of schedule in reducing our inventories. And I look at the overall health of our inventory, I feel good about where we're positioned relative to where we've been, certainly. And so we'll see a moderating promotional environment is our view moving forward. We know we're going to see that in our own channels.

然而，當我退後一步審視事情時，我對我們今年提高毛利率的能力越來越有信心。當我們從庫存的角度來看我們的處境時，我們在減少庫存方面取得了非常好的進展，比計劃提前了一點。我看看我們庫存的整體健康狀況，我對我們相對於我們過去的位置感到滿意，當然。因此，我們未來將看到一個溫和的促銷環境。我們知道我們會在自己的渠道中看到這一點。

And in the wholesale business, inventories are going to be down a lot. And the fact that we're actually moderating our assumptions in wholesale means we're going to sell in less, and that probably even helps that picture to some degree. So feel good about where we're heading there. And we'll see -- we'll begin to see benefits in terms of favorability on the promotional line, I think, as we move even over the next couple of quarters.

在批發業務中，庫存將會大幅下降。事實上，我們實際上正在調整我們的批發假設，這意味著我們的銷量將會減少，這甚至可能在某種程度上有助於實現這一目標。所以對我們要去的地方感覺良好。我認為，隨著我們在接下來的幾個季度採取行動，我們將開始看到促銷活動在好感度方面的好處。

The benefits of business mix continue to be quite strong given kind of where the revenue is coming from by geography and by channel and, I'd say, a clear visibility to easing product costs both in terms of FOBs, but in particular, on the freight line. So we'll have some -- we'll have a little bit of benefit there as you think about the net impact of price versus cost. So with more clarity and understanding where we sit, feel good about margins.

考慮到收入來自於地理位置和渠道，業務組合的好處仍然相當強大，我想說的是，在離岸價方面，尤其是在貨運專線。因此，當您考慮價格與成本的淨影響時，我們將獲得一些好處。因此，隨著我們更加清晰和了解我們所處的位置，我們對利潤率感到滿意。

And in SG&A, we're going to be very careful. We'll continue to maintain pretty strict controls around how we're spending our money. And as we've shown here in Q1, when revenue is a little more difficult, we'll be very prudent and careful from a spending standpoint.

在SG&A 方面，我們會非常小心。我們將繼續對我們的資金使用方式保持相當嚴格的控制。正如我們在第一季度所展示的，當收入變得更加困難時，從支出的角度來看，我們將非常謹慎和謹慎。

Our next questions come from the line of Simeon Siegel with BMO Capital Markets.

我們的下一個問題來自蒙特利爾銀行資本市場部的西蒙·西格爾 (Simeon Siegel)。

So just maybe elaborate a little bit more on how you're viewing the promotional landscape. I know you're talking about what you can control and not. But any color there that you can dig into? And then sorry if I missed it, did you say what Vans DTC, how that performed? That would be helpful.

因此，也許可以詳細說明一下您如何看待促銷環境。我知道你在談論什麼是你可以控制的，什麼是你不能控制的。但有什麼顏色是你可以挖掘的嗎？如果我錯過了，抱歉，你有說 Vans DTC 是什麼嗎？表現如何？那會有幫助的。

Yes. We didn't say what Vans DTC was. But let me come back to that. In terms of promotions, I think first and foremost, the inventory positions are going to be a lot cleaner than where we were last year. We know where our own inventory position is as we head into the fall holiday season. And with the actions that our partners have taken and obviously what's contemplated in our outlook for the year with much lower wholesale volume, we're going to be much better positioned there.

是的。我們沒有說 Vans DTC 是什麼。但讓我回到這一點。在促銷方面，我認為首先也是最重要的是，庫存狀況將比去年干淨得多。當我們進入秋季假期時，我們知道我們自己的庫存狀況。通過我們的合作夥伴所採取的行動，以及我們對今年批發量大幅下降的展望的預期，我們將在這方面處於更好的位置。

And remember, too, for us, our promotions last year and our level of discounts were impacted by some of our own self-inflicted wounds, right, where we were late in shipping and we had to offer additional discounting to secure some of those volumes. And so we're up against that, and we're not going to repeat any of that given where we sit today from an inventory standpoint and really where the supply chain sits in their ability to service the business and deliver on time.

還要記住，對我們來說，我們去年的促銷活動和我們的折扣水平受到了我們自己造成的一些傷害的影響，對吧，我們發貨晚了，我們不得不提供額外的折扣來確保其中一些銷量。因此，我們面臨著這一點，考慮到我們今天從庫存的角度來看，以及供應鏈在服務業務和按時交付的能力方面的實際情況，我們不會重複任何內容。

So the inventories are going to be cleaner. Certainly, the wholesale marketplace is taking a more prudent and cautious approach. Our internal view of inventories will be -- position us to be a lot cleaner.

因此，庫存將會更加干淨。當然，批發市場正在採取更加謹慎和謹慎的態度。我們對庫存的內部看法是——讓我們變得更加干淨。

I will say the one place where we'll continue to be pretty aggressive in promotions, and we've contemplated this in our outlook, obviously, is in our own outlet stores. That's where we're moving through the excesses and we've carried forward some excess inventory. As we've talked about from last year, that's contemplated and how we're filling those stores as we move through the balance of the year. And so we'll continue to be pretty aggressive there. But it will be more comparable to last year versus, I would say, worse, and we'll see nice benefits in our full-price channels in our wholesale business.

我想說的是，我們將繼續大力促銷的地方，顯然，我們已經在我們的前景中考慮到了這一點，那就是我們自己的直銷店。這就是我們正在解決過剩問題的地方，我們已經結轉了一些過剩庫存。正如我們去年所討論的那樣，這是我們所考慮的，以及我們在今年剩下的時間裡如何填充這些商店。因此，我們將繼續在這方面保持相當積極的態度。但這將與去年更具可比性，而我想說的是，情況更糟，我們將在批發業務的全價渠道中看到很好的好處。

And from a Vans standpoint, in the first quarter, we were down right at double digits from a DTC perspective.

從 Vans 的角度來看，第一季度，從 DTC 的角度來看，我們的業績下滑了兩位數。

Got it. And then just lastly, if I can, within the gross margin mix benefit, any way to help think about what's coming from channel versus geography and how to think about that going forward?

知道了。最後，如果可以的話，在毛利率組合效益範圍內，有什麼方法可以幫助思考渠道與地理位置的對比以及如何思考未來的發展？

Yes. It's kind of split relatively evenly. Certainly, our international business continues to be a growth driver for us, and there's a nice margin benefit from that. And then with DTC slightly negative in the quarter but a fairly wide margin away from wholesale, you get a nice benefit. So it's about equal between those 2 pieces of the business. And moving forward -- we delivered about 80 basis points of favorability in the first quarter. As we move through the balance of the year, something in that range, maybe a little bit below that is probably the way to think about it.

是的。它的分配相對均勻。當然，我們的國際業務仍然是我們的增長動力，並且從中獲得了可觀的利潤率。然後，由於本季度 DTC 略有負值，但與批發相比有相當大的利潤，您將獲得不錯的收益。因此，這兩項業務之間的比例大致相等。展望未來，我們在第一季度提供了約 80 個基點的支持度。當我們度過今年剩下的時間時，思考這個問題的方式可能是在這個範圍內，也許稍微低於這個範圍。

Our next questions come from the line of Laurent Vasilescu with BNP Paribas.

我們的下一個問題來自法國巴黎銀行的 Laurent Vasilescu。

Bracken, great to have you on the call. We look forward to your updated thoughts 90 days from now.

布雷肯，很高興您能來電。我們期待 90 天后您的最新想法。

Thank you.

謝謝。

Matt, I wanted to follow up on Dana's question. I think you alluded to 2Q maybe slightly negative. I see consensus is modeling for revenues to be flat. Just for the audience, maybe can you give a little more color, just guidelines on how we think about 2Q revenues? And then I have a follow-up question on gross margins and SG&A.

馬特，我想跟進達納的問題。我認為你提到第二季度可能略有負面。我認為共識是建立收入持平的模型。對於觀眾來說，也許您可以提供更多的色彩，只是關於我們如何看待第二季度收入的指導方針？然後我有一個關於毛利率和銷售管理費用的後續問題。

Yes. So we don't have guidance for Q2, Laurent. So I'm not going to give you guidance. But what I'll say is it will be sequentially less negative. I would also suggest that where we sit today, we'd expect a little bit more -- a slight benefit from currency on a reported basis in Q2. And certainly, you can figure that out as you look at where rates are versus last year but -- so sequentially less negative.

是的。所以我們沒有第二季度的指導，勞倫特。所以我不會給你指導。但我要說的是，負面影響將逐漸減少。我還建議，我們今天的預期會更高一些——根據第二季度報告的匯率略有好處。當然，當你查看利率與去年相比時，你可以弄清楚這一點，但是——所以負值依次減少。

Also, I would remind you that last year, had some noise in Q2, right? We were late shipping in particular, in the Outdoor segment, The North Face and Timberland most prominently. We were late delivering fall. We expect to be able to flow product fall this fall and normally. And we're positioned to certainly be able to set those floors at the right time. And so there's some noise there as you think about the flow of wholesale shipments, particularly in the outdoor segment between Q2 and Q3. So something just to remind you as you think about the modeling, but that's as far as I'm going to go.

另外，我想提醒您，去年第二季度有一些噪音，對吧？尤其是在戶外領域，The North Face 和 Timberland 的發貨延遲最為突出。我們遲到了秋天。我們預計今年秋天能夠正常流通產品。我們的定位肯定能夠在正確的時間設定這些底線。因此，當您考慮批發出貨量時，會出現一些噪音，特別是在第二季度和第三季度之間的戶外部分。所以，當你考慮建模時，我想提醒你一些事情，但這就是我要做的。

Okay. And then on the gross margin, it sounds like -- tell us if we're wrong, but you're taking down the gross margin, right? It was supposed to be exceeding 100 basis points for the year. Is it still the case? And maybe if you could give us some guardrails around how do you think gross margins should shake out for the year.

好的。然後在毛利率方面，聽起來像是 - 告訴我們我們是否錯了，但你正在降低毛利率，對嗎？今年應該會超過100個基點。現在還是這樣嗎？也許您能給我們一些關於您認為今年毛利率應該如何變化的護欄。

And then it's nice to see on the SG&A front that you can protect the earnings for this year. But the 3% decline in SG&A, can you just maybe walk us through what drove that? And how do we think about that for the balance of the year?

然後很高興看到在 SG&A 方面您可以保護今年的收益。但是 SG&A 下降了 3%，您能否向我們介紹一下導致這一下降的原因？我們如何看待今年剩下的時間？

Yes. Sure. So margins, we still expect -- we didn't change anything there, in my view, up at least 100 basis points. And actually, my point there would be increasingly confident in our ability to drive those higher gross margins. And that's kind of the point I made earlier about how we see the favorability in business mix that we saw in Q1 kind of continuing. The promotional environment is going to swing back in terms of -- the comp is going to get kind of the tailwind of that, begins even in the next quarter. Really, Q2 to Q4 last year, we had well north of 200 basis points every quarter. In fact, 300 basis points or so in the last part of the year.

是的。當然。因此，我們仍然預計利潤率——在我看來，我們沒有改變任何東西，至少會上漲 100 個基點。事實上，我的觀點是，我們對提高毛利率的能力越來越有信心。這就是我之前提出的關於我們如何看待第一季度業務組合的有利性的觀點。促銷環境將在以下方面發生逆轉——公司將獲得某種順風，甚至從下個季度開始。事實上，去年第二季度到第四季度，我們每個季度的利率都遠遠超過 200 個基點。事實上，今年下半年已經上漲了 300 個基點左右。

So that comes back in our favor. And even if we see a bit elevated level of promotions, we're going to see improvement year-over-year. That's our expectation. And then the product cost eases and actually potentially becomes a little bit of a tailwind in half 2 in terms of what we see. And the good news is we have pretty clear visibility now from a cost standpoint all the way through the fiscal year. So those are a couple of points I'd make on margin. But confidence in where we sit today, Laurent, I think is the message I'd want you to take away.

所以這對我們有利。即使我們看到促銷水平有所提高，我們也會看到逐年改善。這是我們的期望。然後，產品成本下降，實際上，就我們所看到的而言，可能會成為《半程 2》中的一點順風車。好消息是，從整個財年的成本角度來看，我們現在擁有相當清晰的可見性。這些是我想在保證金上提出的幾點。但洛朗，我認為對我們今天坐的位置的信心是我希望你傳達的信息。

And SG&A, certainly, when we see revenue under pressure, we've got levers we can pull as we manage our controllable spending. There's a lot of fixed costs in a business like ours, certainly, but there's a lot that's in our control, too. There's discretionary spending that we can pull levers against. We can stop things that we think in the short term aren't having a significant impact on what we're trying to accomplish in executing with the consumer and with our customers. We've done that.

當然，SG&A，當我們看到收入面臨壓力時，我們可以利用槓桿來管理我們的可控支出。當然，像我們這樣的企業有很多固定成本，但也有很多是我們可以控制的。我們可以利用槓桿來控制可自由支配的支出。我們可以阻止那些我們認為短期內不會對我們與消費者和客戶執行任務產生重大影響的事情。我們已經做到了。

We're working aggressively to optimize things like distribution capacity, I mentioned that. But similar types of things when you think about where revenue is under pressure, how do you kind of rationalize where it makes sense across your footprint and your capacity in different areas. And certainly, things like just pausing on projects that are longer-term oriented to focus on the near term. And the benefit there is cost, but also the benefit is focus. And that's really important to us as well, that we focus on the things that we've got to get fixed and we got to get right.

我提到過，我們正在積極努力優化配送能力等方面。但是，當您考慮收入在哪些方面面臨壓力時，類似的事情，您如何合理化您在不同領域的足跡和能力的合理之處。當然，諸如暫停長期項目以專注於短期之類的事情。好處有成本，但好處也在於專注。這對我們來說也非常重要，我們專注於我們必須解決的問題，我們必須做對的事情。

And actually, it's kind of nice with -- as we begin to work with Bracken here, too, to kind of take a hard look at all those things, and that's something we're doing and certainly began to do in Q1 as we pulled back on some spending.

實際上，這很好，因為我們也開始與 Bracken 在這里合作，認真審視所有這些事情，這就是我們正在做的事情，當然也開始在第一季度開始做，因為我們拉回來一些支出。

Our next questions come from the line of Jay Sole with UBS.

我們的下一個問題來自瑞銀集團的 Jay Sole。

I guess if we can talk a little bit more about Vans. I think, Kevin Bailey, you're on the call. If we go back to January, maybe some of the opportunities that you were seeing, maybe some of the green shoots, I mean, are those still happening? I mean you talked about something like some of the newer footwear styles working better. But just give us an overall view of where things stand today with Vans, with the brand and the progress you're making turning around the brand. That would be very helpful.

我想我們是否可以多談談 Vans。我想，凱文·貝利，你正在接聽電話。如果我們回到一月份，也許你看到了一些機會，也許一些萌芽，我的意思是，這些還在發生嗎？我的意思是，你談到了一些新鞋款的效果更好。但請讓我們總體了解 Vans 的現狀、品牌以及您在品牌轉型方面所取得的進展。這將非常有幫助。

Thanks, Jay. Happy to -- go ahead.

謝謝，傑伊。很高興——繼續吧。

Kevin, I'm just going to say one thing, and then I'll turn it over to you, and I know you'll agree with this. We're not looking for a quick fix in this business. We're setting up the brand for long-term profitable growth, and we're not going to sacrifice that objective. I think that's really important. And it's taking longer than we would have liked. And certainly, the results that we saw this quarter, even if it's what we expected, it's not good. It was poor, and it's disappointing to see. But the team is working aggressively against the right things to turn the brand around. And I know you want some details on that. But Kevin, maybe unpack some of the things you're going after.

凱文，我只想說一件事，然後我會把它交給你，我知道你會同意這一點。我們並不是在這個行業尋求快速解決辦法。我們正在建立品牌以實現長期盈利增長，我們不會犧牲這一目標。我認為這非常重要。而且花費的時間比我們希望的要長。當然，我們本季度看到的結果，即使是我們的預期，也不好。很糟糕，看到它很令人失望。但該團隊正在積極採取正確的措施來扭轉品牌形象。我知道你想了解一些細節。但是凱文，也許可以解開一些你想要的東西。

Yes. No, thanks, Matt. And Jay, you're spot on. I think, as Matt said, certainly, we're not happy delivering that kind of decline in the quarter. However, it was in line with our expectations as we anticipated that based on order book and what we were seeing a year ago or a little less than a year ago with the order book. But that said, as Matt said, we believe we can execute better and deliver better on our potential.

是的。不，謝謝，馬特。傑伊，你說得對。我認為，正如馬特所說，我們當然不願意在本季度實現這種下降。然而，這符合我們的預期，因為我們根據訂單簿以及我們一年前或不到一年前的訂單簿所看到的情況進行了預期。但正如馬特所說，我們相信我們可以更好地執行並更好地發揮我們的潛力。

Overall, the indicators on the brand remains strong. I think I said at Investor Day, consumers were really the piece that we needed to put at the front of our decision-making. And we're still seeing stable considerations, strong sentiment scores. Matt referenced our loyalty program. It's 2x its size 2 years ago. So that part of it is solid.

總體而言，該品牌的指標仍然強勁。我想我在投資者日說過，消費者確實是我們決策時需要考慮的因素。我們仍然看到穩定的考慮因素和強勁的情緒分數。馬特提到了我們的忠誠度計劃。它的大小是兩年前的兩倍。所以這部分是堅實的。

As you asked about specifically the green shoots in product, that really is where I put my first attention because products in this footwear and apparel space is such a long lead time issue. And the new intros are working well. So things that we address around style, newness, versatility, comfort, which is what we had been hearing from our consumers but not responding adequately enough to, are starting to come to fruition with the product that we're bringing out like the Knu Skool, like the Lowland, like the Mary Jane, those are nice green shoots. They're still small at this point and not enough to offset the decline we've seen in Classics. However, the work we're doing in the background to bring bigger stories to the market faster that will deliver more results, we still feel really confident in.

當您特別詢問產品的萌芽時，這確實是我首先關注的地方，因為鞋類和服裝領域的產品的交貨時間非常長。新的介紹效果很好。因此，我們圍繞風格、新穎性、多功能性、舒適性所解決的問題，這是我們從消費者那裡聽到的，但沒有做出足夠的回應，正在開始在我們推出的產品（如 Knu Skool）中取得成果。 ，就像低地，就像瑪麗珍，那些都是漂亮的綠芽。目前它們的規模仍然很小，不足以抵消我們在經典領域看到的下滑。然而，我們在後台所做的工作是為了更快地將更大的故事推向市場，從而帶來更多成果，我們仍然對此充滿信心。

And then as Matt referenced, really leaning into expanding our franchises. I think in the past, our focus on Classics was so big that it distorted our opportunities. And what we're doing with things like the UltraRange and the MTE, growing it double digits, UltraRange, I think 13% for the quarter, MTE at 39% for the quarter, that's really where we believe there's a lot more opportunity to broaden our product meeting. So those are particularly important. Matt referenced launching pinnacle, and you'll start to see that in spring when the line first really comes to market.

然後，正如馬特提到的那樣，我們真正傾向於擴大我們的特許經營權。我認為過去我們對經典的關注太大，以至於扭曲了我們的機會。我們正在做的事情，如 UltraRange 和 MTE，增長了兩位數，UltraRange，我認為本季度增長了 13％，MTE 本季度增長了 39％，這確實是我們相信有更多機會擴展的地方我們的產品會議。所以這些就顯得尤為重要。馬特（Matt）提到了推出巔峰（pinnacle），到了春天，當該系列產品首次真正上市時，你就會開始看到這一點。

And then we have been continuing to work on consumer and getting really deep into understanding our segmentation study, integrating consumer data and analytics into everything we do, et cetera. So those are really our big priorities.

然後，我們一直在繼續研究消費者，並真正深入了解我們的細分研究，將消費者數據和分析整合到我們所做的一切中，等等。所以這些確實是我們的首要任務。

However, we still believe execution is the opportunity. And what we're doing with SKU reduction of 20% to 30% that will be completed in August in our U.S. stores, that changes store layouts, simplifies the shopping experience for consumers but still delivers on the business we want to see. Overall, I think the things we said we were going to focus on are really working.

然而，我們仍然相信執行就是機會。我們正在做的事情是，我們的美國商店將於 8 月份完成 SKU 減少 20% 至 30%，這將改變商店佈局，簡化消費者的購物體驗，但仍能實現我們希望看到的業務。總的來說，我認為我們所說的要關注的事情確實有效。

Our next questions come from the line of Jonathan Komp with Baird.

我們的下一個問題來自喬納森·康普（Jonathan Komp）和貝爾德（Baird）的對話。

Welcome, Bracken. Just maybe one follow-up, if I could. Your initial intuition just on the time line to turn around any of the brands that are in focus or implement some changes, just curious to get your thoughts there. And just more of a broader question. You're obviously inheriting a financial plan for this year. But any thought to essentially a broader reset that would enable you to really accelerate some of the investments in the different areas of the business?

歡迎，布雷肯。如果可以的話，也許只是一個後續行動。您最初的直覺只是在時間線上扭轉任何關注的品牌或實施一些改變，只是想知道您的想法。這是一個更廣泛的問題。顯然你繼承了今年的財務計劃。但有沒有想過進行更廣泛的重置，使您能夠真正加速對不同業務領域的一些投資？

Yes. As I said, it's a little too early for me to respond to either one of those. But what I would say is I am -- I said earlier that I felt right at home. The 1 or 2 things that I feel most excited about coming in here are, one, the brands are even stronger than I expected. And it's nice to see -- I knew we had strong brands, but as I've gone through it, I feel really good about the brand equities and the potential of each brand. And the people here are really strong. So I'm super optimistic. I'm 12 days in, so I'm not ready to start talking about what we're going to do next, but I'm really excited about being here. And I promise you, I won't evade your question next quarter.

是的。正如我所說，對我來說，現在回應其中任何一個都為時過早。但我想說的是——我之前說過我感覺就像在家裡一樣。來到這裡讓我最興奮的一兩件事是，第一，這些品牌比我預期的還要強大。很高興看到——我知道我們擁有強大的品牌，但當我經歷過這些之後，我對品牌資產和每個品牌的潛力感到非常滿意。而且這裡的人實力確實很強。所以我非常樂觀。我已經入職 12 天了，所以我還沒有準備好開始談論我們下一步要做什麼，但我很高興能來到這裡。我向你保證，下個季度我不會迴避你的問題。

Understood and appreciate that. Matt, if I could follow up then on the DTC assumption for the year. I think constant currency was down slightly for the quarter. Could you just give us more insight what you're planning for the year and especially for the Vans business, what's needed in the second half in order to hit the guidance here?

理解並欣賞這一點。馬特，我能否跟進今年的 DTC 假設。我認為本季度按固定匯率計算略有下降。您能否讓我們更深入地了解您今年的計劃，特別是 Vans 業務，下半年需要什麼才能達到此處的指導？

Yes. Certainly. Yes, DTC was slightly negative in the quarter. Of course, it's a smaller DTC quarter for us. Vans is a bigger part of the quarter -- a bigger part of the total in the quarter, even if the business has been declining, especially relative to the outdoor businesses that are certainly much more weighted toward the latter part of the year. So there's that going on.

是的。當然。是的，DTC 在本季度略有負值。當然，對於我們來說，這是一個較小的 DTC 季度。 Vans 在本季度所佔的份額更大，即使業務一直在下降，特別是相對於今年下半年的戶外業務而言，它在本季度總業務中所佔的份額更大。所以事情就這樣發生了。

If you look at kind of the -- kind of carve-out Vans, which obviously we've talked a lot about, the DTC results in Q1, I think, we're up 7% for total VF. And I don't think, I know they were up 7% in Q1, which is kind of in line with where we've been. And if you think about across the year, that's kind of the range that we're looking at from a DTC perspective and growth across all regions. And certainly, expecting to see growth in the Vans DTC business as we move through the year. And then we've talked about at some point in the year seeing -- in the back half of the year seeing the Vans business begin to grow. That's certainly going to be driven by the direct-to-consumer business.

如果你看看那種類型的 Vans，顯然我們已經討論了很多，第一季度的 DTC 結果，我認為，我們的總 VF 增長了 7%。我不認為，我知道他們在第一季度增長了 7%，這與我們一直以來的情況一致。如果你考慮一下全年情況，就會發現這就是我們從 DTC 角度和所有地區的增長角度看待的範圍。當然，我們預計 Vans DTC 業務將在這一年中實現增長。然後我們談到了今年下半年 Vans 業務開始增長的情況。這肯定是由直接面向消費者的業務推動的。

Now all of that's also impacted by the comps and the compares, right? The compares get certainly quite a bit easier for Vans in particular, but for some of our other brands as well as we move through the year. So DTC will be a growth driver for us for the year. It will grow across regions, and generally expect it to grow across brands.

現在所有這些都受到比較和比較的影響，對嗎？尤其是對於 Vans 來說，比較肯定會變得容易一些，但對於我們的一些其他品牌以及我們全年的情況來說。因此，DTC 將成為我們今年的增長動力。它將跨地區增長，並且普遍預期它會跨品牌增長。

Our next questions come from the line of Brooke Roach with Goldman Sachs.

我們的下一個問題來自高盛的布魯克·羅奇。

Bracken, welcome. My question is for Matt, and I just wanted to have one quick follow-up on the Vans business. I'm curious what you're seeing in Vans China and the brand equity that you're seeing in that region as the market continues to reopen. APAC this quarter was down a couple of percent in constant currency. How is that brand trending there? What are the initiatives there? And what's embedded in the China outlook for the Vans brand to the back half?

布雷肯，歡迎。我的問題是問 Matt 的，我只是想快速跟進一下 Vans 業務。我很好奇您在 Vans 中國看到了什麼，以及隨著市場繼續重新開放，您在該地區看到的品牌資產。按固定匯率計算，本季度亞太地區下跌了幾個百分點。該品牌在那裡的流行趨勢如何？那裡有哪些舉措？ Vans 品牌在中國的後半程有何展望？

And then maybe for Kevin, as you think about Vans America and the challenge that you're seeing in Classics relative to the green shoots that you're seeing in some of the new product lines, is there any stabilization in trend in Classics' sell-through relative to where it had been trending as a result of some of these new initiatives that you've been implementing?

然後，也許對 Kevin 來說，當你想到 Vans America 以及你在 Classics 中看到的挑戰（相對於你在一些新產品線中看到的萌芽）時，Classics 的銷售趨勢是否有穩定的跡象-相對於您一直在實施的一些新舉措所導致的趨勢？

Brooke, nice to speak with you. I'll take a little bit there, and Kevin, but I'm actually also going to ask Martino to chime in here because I know he was actually on the ground in China in the last few weeks and spent time with the team there and certainly looking across all the brands, and he's got his pulse on that. So I think it'd be interesting -- certainly, you'd be interested to hear his perspective on Vans in China.

布魯克，很高興與你交談。我會在那裡講一點，凱文，但實際上我也會請馬蒂諾插話，因為我知道他過去幾週實際上在中國，並與那裡的團隊一起度過了時光當然，他瀏覽過所有品牌，並且對此瞭如指掌。所以我認為這會很有趣——當然，你會有興趣聽聽他對 Vans 在中國的看法。

We certainly are seeing the business -- we saw growth in Vans in China in the quarter. So clearly, we're in a better place there in terms of kind of the inventory reset that's been underway. So we're cautiously optimistic that we're in a place where we'll continue to see good results coming out of that region as we move forward across the year.

我們當然看到了業務——本季度我們看到了 Vans 在中國的增長。很明顯，就正在進行的庫存重置而言，我們處於更好的位置。因此，我們謹慎樂觀地認為，隨著我們今年的前進，我們將繼續看到該地區取得良好的成果。

Overall, in APAC, it's been -- Korea has been weaker for us and Vans is a big -- one of our bigger businesses in Korea. Korea has been more challenged. But we're in a better place, I think, today with Vans in the region, particularly in China, than we were 6 months ago. Martino, anything you want to say about what's happening on the ground there with the team?

總體而言，在亞太地區，韓國對我們來說一直較弱，而 Vans 是我們在韓國較大的業務之一。韓國面臨的挑戰更大。但我認為，今天 Vans 在該地區，特別是在中國，我們的處境比 6 個月前更好。馬蒂諾，您對團隊現場發生的事情有什麼想說的嗎？

Yes. Thanks, Matt. I think, first of all, we see China in a positive, right? So Q1 was up in the high single digits for Vans in China, which is good news. And I think when I was there a couple of weeks ago, what I started to see is really, as China reopens, a very strong engagement from consumers in stores beyond online. And don't forget that we're still underpenetrated in China. We target a broad consumer demographic there so -- with the growing emerging middle class, and that's a big opportunity.

是的。謝謝，馬特。我認為，首先，我們對中國的看法是積極的，對嗎？因此，Vans 第一季度在中國的銷量實現了高個位數增長，這是個好消息。我認為幾週前我在那裡時，隨著中國重新開放，我開始看到的確實是，消費者在網上以外的商店中的參與度非常高。並且不要忘記我們在中國的滲透率仍然不足。我們的目標是廣泛的消費者群體——隨著新興中產階級的不斷壯大，這是一個巨大的機會。

And at the same time, as we go back in store and launch new products, we also drive local for local product and storytelling. So the asset will also benefit from a stronger -- for Vans in particular, from a stronger local execution. And the recent Tokyo design center that we invested in and created in Tokyo actually to design and influence across China and Asia is going to drop new products also for Vans specifically in the second half of this year. So overall, the sentiment in China is turning positive as the country reopens, and Vans is part of that. And Kevin, maybe you want to add something from the specific brand side.

與此同時，當我們回到商店並推出新產品時，我們也會推動本地產品和故事的本地化。因此，該資產也將從更強大的本地執行中受益，特別是對於 Vans 而言。我們最近在東京投資創建的東京設計中心實際上是為了在中國和亞洲進行設計和影響，今年下半年也將專門為 Vans 推出新產品。總的來說，隨著國家重新開放，中國的情緒正在變得積極，Vans 就是其中的一部分。凱文，也許你想從特定品牌方面添加一些內容。

Yes. I can just add on China, Brooke, and then I can talk specifically to Classics that you asked about. I think Martino hit a lot of it. Localization is really key. China being our newest market, we have to really build Classics with an -- for the consumer understanding of the brand. However, they have a very specific ask. And as Martino said, we're leaning into localization to bring what they want from our product to the market. I'd also say they recovered really quick from COVID on inventories with our partner stores, and that really has given us the opportunity to start moving faster, as Martino said, to achieve the kind of growth we're seeing in China through DTC.

是的。布魯克，我可以補充一下中國，然後我可以具體談談你問到的經典。我認為馬蒂諾打了很多球。本地化確實很關鍵。中國是我們最新的市場，我們必須真正打造經典——讓消費者了解品牌。然而，他們有一個非常具體的要求。正如馬蒂諾所說，我們正在傾向於本地化，將他們想要的產品從我們的產品推向市場。我還想說，我們的合作夥伴商店的庫存從新冠疫情中恢復得非常快，這確實讓我們有機會開始更快地採取行動，正如馬蒂諾所說，以實現我們通過 DTC 在中國看到的那種增長。

And the last thing I'd really say there is really about Sk8. Skateboarding has taken on a real life in China as that started to grow, and the team ran a really strong Go Skateboarding Day. And we're really leading there, and we stood up a skate school with one of the big digital players. So the team there is doing a lot. Canvas is still not on trend from the search trends, but we're feeling good about where China is and how it's growing. We see a lot more opportunity.

我要說的最後一件事是關於 Sk8 的。隨著滑板運動的開始發展，滑板運動在中國已經成為現實，團隊舉辦了一場非常精彩的“Go Skateboarding Day”活動。我們確實在這方面處於領先地位，我們與一位大型數字玩家一起建立了一所滑板學校。所以那裡的團隊做了很多事情。從搜索趨勢來看，Canvas 仍然不是流行趨勢，但我們對中國的現狀及其增長方式感到滿意。我們看到了更多的機會。

To get to your question on Americas and stabilization on Classics, I think I said it at Investor Day, we became overreliant on Classics and particularly on really just a couple of styles, and that really was a big piece of our underperformance, and that we didn't have a strong product pipeline behind it. So what you see in these green shoots, albeit small right now, are the opportunity to start doing franchises beyond Classics.

為了回答你關於美洲和經典穩定的問題，我想我在投資者日說過，我們變得過度依賴經典，特別是實際上只有幾種風格，這確實是我們表現不佳的一個重要原因，而且我們其背後沒有強大的產品線。因此，你在這些萌芽中看到的，儘管現在還很小，但卻是開始製作經典之外的特許經營權的機會。

So our focus really is, to your point, on stabilization is just that: stabilize our Classics business; bring style iterations to the market around Classics, which is where we're seeing success with our wholesale partners and our consumers who want newness, but build more and more the product propositions around Classics that are adjacent but relevant and give us a greater opportunity to diversify our product pipeline to the consumers. So stabilization of Classics is absolutely critical. As far as seeing it yet, not really yet because of the amount of product that was in the marketplace.

因此，就您而言，我們的重點實際上是穩定：穩定我們的經典業務；圍繞經典將風格迭代推向市場，我們的批發合作夥伴和想要新鮮感的消費者在這方面取得了成功，但圍繞經典建立越來越多的產品主張，這些主張既相鄰又相關，這給了我們更大的機會使我們向消費者提供的產品線多樣化。因此經典的穩定絕對至關重要。就目前來看，還沒有真正看到，因為市場上的產品數量很多。

Our next questions come from the line of Ike Boruchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

Matt, maybe can you just help me with 2 questions. First, on Dickies, the decline you saw in the quarter, just how surprising was that versus your plan? Can you talk a little bit more about what's going on from a sell-in perspective to the mass channel over the last couple of months? And then is there any update on the PACS business? Is this still something that you guys are expecting to divest at some point this year? Just kind of looking for an update there.

馬特，也許你能幫我解決兩個問題。首先，關於 Dickies，您在本季度看到的下降與您的計劃相比有多令人驚訝？您能從銷售角度多談談過去幾個月大眾渠道的情況嗎？那麼PACS業務有什麼進展嗎？你們仍然希望在今年某個時候剝離這件事嗎？只是在那裡尋找更新。

Yes. Thanks, Ike. I do think I get to take both of those. As for Dickies, it was disappointing in the quarter. It didn't meet our expectations, just to be frank. The business continues to be impacted by soft results in the Americas and the network channel. Sell-through is falling short of expectations. I think we continue to see kind of outsized impacts from some of the challenges in the marketplace that are impacting that value in consumer a little more so than what we're seeing in other parts of our business.

是的。謝謝，艾克。我確實認為我可以同時接受這兩個。至於 Dickies，該季度的表現令人失望。坦率地說，它沒有達到我們的期望。該業務繼續受到美洲和網絡渠道疲軟業績的影響。銷售率低於預期。我認為我們繼續看到市場中的一些挑戰所產生的巨大影響，這些挑戰對消費者價值的影響比我們在業務的其他部分所看到的要大一些。

If there's a bright spot to some degree, our inventory positions are now in a pretty good place. In particular, our largest account, they're in a better place. And if sell-through improves across the pad and certainly for us, for Dickies, we're in a position that we can capitalize on that, and we'll see a nice replenishment [pop] at some stage. But to date, the underlying sell-through has continued to be short of our expectations.

如果說有某種程度的亮點的話，那麼我們的庫存狀況現在處於一個相當不錯的位置。特別是我們最大的客戶，他們處於更好的位置。如果整個平台的銷售量有所提高，當然對我們來說，對 Dickies 來說，我們就可以利用這一點，並且在某個階段我們會看到很好的補貨。但迄今為止，潛在的銷售量仍然低於我們的預期。

Europe continues to grow. I think that's another thing driven by the lifestyle part of the business. That's been important to us. But ultimately, we've got work to do here to improve that basic Work business in the U.S. and ensure we're driving that business effectively. And so that's a big focus of the team today.

歐洲繼續增長。我認為這是由企業的生活方式部分驅動的另一件事。這對我們很重要。但最終，我們還有很多工作要做，以改善美國的基本工作業務，並確保我們有效地推動該業務。所以這是團隊今天的重點。

As it relates to PACS, first off, the business continues to perform well. If anything, it's a little better in Q1 than we anticipated, and it's set up for a really good back-to-school. Remember, we grew the top line nicely last year across the year, top and bottom line, and that continued into Q1. These brands continue to kind of have momentum and benefit from consumer trends, but I'd be remiss if I didn't say how happy and proud I am with the team and the work that they're doing, not easy environment when kind of what's going on around them with all the conversations that you asked about is happening, and they continue to do amazing work in that regard. So really impressed by what's happening there.

就 PACS 而言，首先，該業務繼續表現良好。如果說有什麼不同的話，那就是第一季度的情況比我們預期的要好一些，而且它是為一個非常好的返校做好準備的。請記住，去年我們的收入在全年、收入和利潤方面都取得了很好的增長，並且這種情況一直持續到第一季度。這些品牌繼續保持勢頭並受益於消費趨勢，但如果我不說我對團隊和他們正在做的工作感到多麼高興和自豪，那就是我的失職，當這種情況發生時，環境並不輕鬆他們周圍發生的事情以及你所詢問的所有對話正在發生，他們在這方面繼續做出令人驚嘆的工作。那裡發生的事情給我留下了深刻的印象。

The process is continuing. It takes time. There's a lot of interest. We're progressing discussions with a number of parties, and we'll be disciplined in the dealmaking, especially in light of where the business is. The results are good. We're generating good growth. We're generating -- strengthening EBITDA and acknowledging where the capital markets are today. We're just not going to accept the valuation we're not comfortable with. And until we find the right buyer for these brands at a valuation that we're happy with, will continue to be very discerning. So that's kind of the update I'd give you there.

該過程仍在繼續。這需要時間。有很多興趣。我們正在與多方進行討論，我們將在交易過程中遵守紀律，特別是考慮到業務所在。結果很好。我們正在實現良好的增長。我們正在增強 EBITDA 並認識到資本市場的現狀。我們只是不會接受我們不滿意的估值。在我們以滿意的估值為這些品牌找到合適的買家之前，我們將繼續保持非常挑剔的態度。這就是我要向您提供的更新。

And just one more quick one. On Vans in the back half, I know you've been asked this a few different ways. But I believe in May, you had said you expected to return to growth in the back half, and I believe your comments today were moderate the declines. I'm just -- do you expect Vans to be growing in any quarter of this year? Or should we now start to think about next year when the business potentially inflects the top line?

再快一點。在 Vans 的後半部分，我知道你已經被以不同的方式問過這個問題。但我相信在五月份，您曾表示預計下半年將恢復增長，並且我相信您今天的言論緩和了跌勢。我只是——你預計 Vans 在今年的任何一個季度都會增長嗎？或者我們現在應該開始考慮明年業務可能會影響收入的情況嗎？

Yes. Ike, in May, we did not -- at least certainly not our intention, we did not indicate that we were projecting growth in the back half of the year. What we've said consistently, and I think we're still saying today, is that we expect to see the business return to growth at some point later this year, inflect to growth. And we haven't been specific on exactly when that is or kind of what the order of magnitude of that is. But that's what we said.

是的。艾克，五月份，我們沒有——至少肯定不是我們的意圖，我們沒有表明我們預計下半年會出現增長。我們一直在說，而且我想我們今天仍然在說，我們預計業務將在今年晚些時候的某個時候恢復增長，並轉向增長。我們還沒有具體說明具體是什麼時候，也沒有具體說明其數量級是多少。但這就是我們所說的。

Our next questions come from the line of John Kernan with TD Cowen.

我們的下一個問題來自 John Kernan 和 TD Cowen 的對話。

Matt, just on the capital structure, how are you approaching capital allocation, the dividend commitment, the debt refinancing? You obviously have the potential sale of the backpack business if valuations get better there. How should we think about debt paydown, dividend and overall capital allocation going forward?

馬特，就資本結構而言，您如何處理資本配置、股息承諾、債務再融資？如果背包業務的估值好轉，你顯然有可能出售背包業務。我們應該如何考慮未來的債務償還、股息​​和整體資本配置？

Yes. I mean I would say nothing's really changed from our stance on this over the last couple of quarters and certainly on the back of the cut in the dividend that we made a couple of months ago. Our -- we're focused on ensuring we've got the investments and the capital allocated to our organic portfolio that's necessary to kind of drive the growth that we're planning in that business over time. So big focus there for sure that we're not choking the business, and we're not.

是的。我的意思是，我想說的是，過去幾個季度我們對此的立場並沒有真正改變，當然也是在我們幾個月前削減股息的背景下。我們的重點是確保我們有投資和資本分配給我們的有機投資組合，這是推動我們計劃的業務隨著時間的推移增長所必需的。如此大的關注肯定不會阻礙業務發展，而且我們也沒有。

As it relates to free cash flow, certainly, dividend is something that we remain committed to at our target, right? And our target is about a 50% payout, and that's kind of what we're targeting. And we're in line with that, we think, this year. And kind of if you look at it in terms of the percent of -- whether it's net income or free cash flow, kind of both.

由於它與自由現金流相關，當然，股息是我們仍然致力於實現目標的東西，對吧？我們的目標是 50% 左右的支付，這就是我們的目標。我們認為，今年我們也符合這一點。如果你從淨利潤或自由現金流的百分比來看，兩者都是。

And then after that, I would tell you that all excess free cash flow, we are using to pay down debt, and reducing debt that is our #1 financial priority. I think I made that clear in the prepared comments, and that remains consistent. So as we think about the choices that we're making from a capital allocation, everything is really through the lens of thinking our balance sheet, which really goes to reducing debt and reducing leverage, and that's our primary focus.

然後，我會告訴你，所有多餘的自由現金流，我們都用來償還債務，減少債務是我們的第一財務優先事項。我想我在準備好的評論中已經明確表達了這一點，而且這一點仍然是一致的。因此，當我們考慮從資本配置中做出的選擇時，一切實際上都是通過思考我們的資產負債表的角度來考慮的，這實際上有助於減少債務和降低杠桿率，這是我們的主要關注點。

Understood. That's helpful. Maybe just one quick follow-up for Kevin. Specifically on Vans, I mean, we see the pressure in the U.S. wholesale channel across a lot of brands at this point. Just curious, when do you think open to buy dollars and maybe more risk appetite within that U.S. wholesale channel might start? Is it spring/summer next year? Like on the calendar, when you start to look at the business, how do we think about the recovery in that U.S. wholesale channel?

明白了。這很有幫助。也許只是凱文的一個快速跟進。具體到 Vans，我的意思是，我們現在看到許多品牌在美國批發渠道面臨的壓力。只是好奇，您認為美國批發渠道何時會開始開放購買美元以及更多的風險偏好？明年是春夏嗎？就像日曆上一樣，當您開始關注業務時，我們如何看待美國批發渠道的複蘇？

Yes. John, that's a good question. And I think that's the way we're thinking about it is that the opportunity, as we get into the back half of this year, what we're hearing from retailers, as you see all their reports as well, inventory traffic, promotions all affecting business in general. We've been focused on marketplace cleanup, marketplace execution, getting the newer product in their hands because that's what consumers are asking for.

是的。約翰，這是個好問題。我認為這就是我們思考的方式，當我們進入今年下半年時，我們從零售商那裡聽到的機會，正如你也看到他們所有的報告，庫存流量，促銷活動等等影響整體業務。我們一直專注於市場清理、市場執行、將新產品送到他們手中，因為這就是消費者的要求。

So I think we still believe that's going to happen as we get into the back half of this fiscal year for us. And I got to believe that things should start to stabilize in the marketplace as we turn the corner into spring/summer next year. But as Matt said, the order of magnitude is always -- it's a little hard right now given where wholesale is.

因此，我認為我們仍然相信，當我們進入本財年後半段時，這種情況將會發生。我相信，隨著明年春/夏的到來，市場情況應該開始穩定。但正如馬特所說，數量級始終是——考慮到批發的情況，現在有點困難。

Our final questions will come from the line of Adrienne Yih with Barclays.

我們的最後一個問題將來自巴克萊銀行的 Adrienne Yih。

Nice to meet you, Bracken, as well. So Matt, for you, I guess, I'm still a little confused, and I may just be not interpreting the comments correctly. On the gross margin for the quarter, so there was a benefit from the mix of 80 basis points. But how did the freight and the promotions come through the P&L in Q1? And then how should we think about the shaping of that for the rest of the quarters, knowing that freight is going to turn into a tailwind, that's number one.

我也很高興認識你，布雷肯。所以馬特，對於你來說，我想我仍然有點困惑，我可能只是沒有正確解釋這些評論。就本季度的毛利率而言，80 個基點的組合帶來了好處。但運費和促銷活動是如何影響第一季度的損益表的呢？然後，我們應該如何考慮接下來幾個季度的情況，知道貨運將變成順風，這是第一位的。

And then number two, can you talk about TNF and the timing? So you made a comment that last year, Q2, you couldn't ship and then -- I think, didn't have a lot of inventory and then you did ship in the third quarter. Q1 is your smallest quarter. So I'm just trying to figure out how we should think about kind of the ebbs and flows of year-on-year changes in the TNF wholesale business.

第二，您能談談 TNF 和時機嗎？所以你評論說，去年第二季度，你無法發貨，然後——我認為，沒有大量庫存，然後你在第三季度發貨了。 Q1 是最小的季度。所以我只是想弄清楚我們應該如何看待 TNF 批發業務逐年變化的潮起潮落。

Yes. Thanks, Adrienne. So gross margins, I think you've got it in terms of Q1, nice mix benefit, 80 basis points, offset by a couple of hundred basis points of negative rate, which is about evenly split between promotions and FX. Product costs were a bit of a negative, but that was largely offset by pricing. And to your point, I think -- the point that I made, product costs are easing as we move through the year, on the back of freight, in particular, and eventually, we think, become a modest tailwind certainly in the back half of the year. That's how I'd characterize that.

是的。謝謝，艾德麗安。因此，我認為第一季度的毛利率是良好的混合效益，80 個基點，被幾百個基點的負利率所抵消，這在促銷和外匯之間平均分配。產品成本有點負面，但這在很大程度上被定價所抵消。就你的觀點而言，我認為——我提出的觀點是，隨著今年的發展，特別是在貨運的支持下，產品成本正在下降，最終，我們認為，這肯定會在下半年成為溫和的推動力今年的。我就是這樣描述的。

As it relates to The North Face, and I may ask Nicole to chime in here on a couple of things really around just kind of where we are and the trajectory of things. But yes, there's some timing issues a little bit between Q2 and Q3 that we'll navigate. Last year, we were late shipping. And so we shipped a little bit more in Q3 versus Q2 than we might normally ship. And the good news is we're positioned this year to ship in a more optimal way, which is -- we'll work our way through what that means in terms of the results as we get there. But most importantly, it positions us to be on the floor and have those floors set for fall to maximize full-price selling. So anything you want to add there, Nicole?

由於它與 The North Face 相關，我可能會請 Nicole 在這裡插話一些關於我們所處的位置和事物發展軌蹟的事情。但是，是的，我們將在第二季度和第三季度之間解決一些時間問題。去年，我們發貨晚了。因此，我們在第三季度的出貨量比第二季度的出貨量比正常情況要多一些。好消息是，我們今年的定位是以更優化的方式進行交付，也就是說，當我們達到目標時，我們將努力了解這對結果意味著什麼。但最重要的是，它使我們能夠在秋季上市，以最大限度地提高全價銷售。那麼你想補充什麼嗎，妮可？

No, I just think we had a little bit of a timing issue between Q2 and Q1 in our results. But as you said, we really are going to monitor our operational and sell-through performance as we look at Q2 and Q3 together and normalize over the 2 quarters, really trying to hit those key dates for back-to-school and holiday floor sets with our partners and, of course, with our DTC business.

不，我只是認為我們的結果在第二季度和第一季度之間存在一些時間問題。但正如您所說，當我們一起審視第二季度和第三季度並在這兩個季度實現正常化時，我們確實將監控我們的運營和銷售業績，並真正努力在返校和假期樓層設置的關鍵日期與我們的合作夥伴，當然還有我們的 DTC 業務。

Thank you. We have reached the end of our question-and-answer session. And with that, that does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。我們的問答環節已經結束。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。