Wolverine World Wide Inc (WWW) 2024 Q1 法說會逐字稿

Good day, and welcome to the Wolverine Worldwide, Inc., first quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 Wolverine Worldwide, Inc. 2024 年第一季財報電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Alex Wiseman, Vice President of Finance. Please go ahead.

現在我想將會議交給財務副總裁 Alex Wiseman。請繼續。

Good morning, and welcome to our first quarter fiscal 2024 conference call. On the call today are Chris Hufnagel, President and Chief Executive Officer; and Mike Stornant, Executive Vice President and Chief Financial Officer. Earlier this morning, we issued our earnings press release and announced our financial results for the first quarter 2024. The press release is available on many news sites and can be viewed on our corporate website at wolverineworldwide.com.

早上好，歡迎參加我們的 2024 財年第一季電話會議。今天參加電話會議的是總裁兼執行長 Chris Hufnagel；執行副總裁兼財務長 Mike Stornant。今天早些時候，我們發布了收益新聞稿，並公佈了 2024 年第一季的財務業績。新聞稿可在許多新聞網站上找到，也可以在我們的公司網站 wolverineworldwide.com 上查看。

This morning’s earnings press release and comments made during today’s earnings call include non-GAAP financial measures. These non-GAAP financial measures were reconciled to most comparable GAAP financial measures and attached tables within the body of the release.

今天早上的收益新聞稿和今天收益電話會議上的評論包括非公認會計準則財務指標。這些非公認會計原則財務指標與大多數可比較的公認會計原則財務指標進行了協調，並在新聞稿正文中附上了表格。

References made regarding financial results and outlook for 2024 and comparable results from 2023 in each case for our ongoing business exclude the impact of Keds, Wolverine Leathers, and Sperry.

關於 2024 年財務表現和展望以及 2023 年可比較業績的參考資料均不包括 Keds、Wolverine Leathers 和 Sperry 的影響。

I’d like to also remind you that statements describing the company’s expectations, plans, predictions and projections such as those regarding the company’s outlook for fiscal year 2024, growth opportunities and trends expected to affect the company’s future performance made during today’s conference call are forward-looking statements under US securities laws. As a result, we must caution you that there are a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. These important risk factors are identified in the company’s SEC filings and in our press releases.

我還想提醒您，描述公司期望、計劃、預測和預測的陳述，例如有關公司 2024 財年展望、預計將影響公司的成長機會和趨勢的陳述。法規定的前瞻性陳述。因此，我們必須提醒您，有許多因素可能導致實際結果與前瞻性陳述中所述的結果有重大差異。這些重要的風險因素已在公司向 SEC 提交的文件和我們的新聞稿中列出。

With that being said, I’d now like to turn the call over to Chris Hufnagel.

話雖如此，我現在想把電話轉給克里斯·赫夫納格爾 (Chris Hufnagel)。

Thanks, Alex. Good morning, everyone, and thank you for joining us on today’s call. I’m pleased to report we continue to make progress against our aggressive plan to turn around and transform Wolverine World Wide. Executing our plan with tremendous pace to first stabilize the company, set new foundation for return to growth and ultimately deliver greater returns for our shareholders.

謝謝，亞歷克斯。大家早安，感謝您參加今天的電話會議。我很高興地報告，我們在扭轉和改造金鋼狼世界的積極計劃方面繼續取得進展。以驚人的速度執行我們的計劃，首先穩定公司，為恢復成長奠定新的基礎，最終為股東帶來更大的回報。

Importantly, we were doing what we said we would do. In the first quarter, we exceeded revenue expectations with a balanced performance across the portfolio led by beats to our plan for Merrell and Saucony. We exceeded earnings expectations while simultaneously investing more than we initially planned in brand marketing to capitalize momentum we’re seeing in the business today and to help build brand equity for the future. And we continue to strengthen the company’s balance sheet, which we remain intently focused on by further reducing our debt and inventory levels more than we anticipated going into the quarter, a good start to an important year for the company.

重要的是，我們正在做我們說過要做的事。在第一季度，我們超越了營收預期，整個產品組合的業績均衡，優於我們對 Merrell 和 Saucony 的計劃。我們超越了獲利預期，同時在品牌行銷方面的投資超越了我們最初的計劃，以利用我們今天在業務中看到的勢頭，並幫助建立未來的品牌資產。我們繼續加強公司的資產負債表，我們仍然專注於透過進一步減少債務和庫存水準來減少本季的債務和庫存水平，這對公司來說是重要的一年的良好開端。

While our transformation efforts have addressed nearly every aspect of our global operations, we’ve worked particularly hard to rapidly improve our brand’s product pipelines and presentation in the marketplace. We’ve made good progress to date in the product launch calendar for 2024 and into 2025 is especially strong.

雖然我們的轉型工作幾乎涵蓋了全球營運的各個方面，但我們特別努力快速改善我們品牌的產品通路和市場展示。迄今為止，我們在 2024 年的產品發布日曆上取得了良好進展，2025 年的進展尤其強勁。

We’ve also worked to cultivate a healthier marketplace. And at retail, we continue to see inventory levels decline and rogue seller activity abate. Because of our efforts, we’re beginning to see sequential improvement in our selling trends. This is encouraging and provides a level of confidence that our strategies and tactics are beginning to gain traction.

我們也致力於培育一個更健康的市場。在零售業，我們繼續看到庫存水準下降，流氓賣家活動減少。由於我們的努力，我們開始看到銷售趨勢持續改善。這是令人鼓舞的，並為我們的策略和戰術開始獲得關注提供了一定程度的信心。

Average weekly replenishment orders from our wholesale partners accelerated materially from the fourth quarter of 2023 to the first quarter of 2024, and our owned e-commerce demand has improved each month this year, most recently inflecting the growth in March and accelerating further in April.

從2023 年第四季到2024 年第一季度，我們的批發合作夥伴的平均每週補貨訂單大幅增加，我們自有的電子商務需求今年每個月都在改善，最近影響了3 月份的成長，並在4 月進一步加速。

At the same time, we’ve delivered a much healthier gross margin across the business, achieving an all-time record gross margin in the first quarter as a company. A testament to the good work we’ve done on supply chain costs, pricing, inventory, and better managing the marketplace. We’ve set consistently that we believe our turnaround will be led by margin improvement, which we’re seeing today, followed by our plan inflection to growth in the second half of the year.

同時，我們整個業務的毛利率更加健康，第一季毛利率創下了歷史新高。這證明了我們在供應鏈成本、定價、庫存和更好地管理市場方面所做的出色工作。我們始終堅信，我們的扭虧為盈將由利潤率的改善帶動，正如我們今天所看到的那樣，隨後我們的計劃將在下半年實現增長。

While we’re motivated and encouraged by our progress and the proof points we’re seeing, we acknowledge it’s still very early days in our transformation. We still have a lot of work to do to hit our stride and realize the full potential of the company, and there’s no doubt challenges beyond our control exist in the marketplace today.

雖然我們對我們所取得的進步和所看到的證據感到鼓舞和鼓舞，但我們承認我們的轉型仍處於早期階段。我們仍然有很多工作要做，才能大步前進並充分發揮公司的潛力，毫無疑問，當今市場上存在著我們無法控制的挑戰。

However, as we move forward, our vision remains the same to become builders of great global brands, brands that make people’s lives and the world better. Our brand building model centered squarely on building awesome products, telling amazing stories, and driving the business every day. To achieve our vision, we continue to invest in the capabilities that are necessary to execute this new model, strengthening our talent, insights, processes and tools.

然而，在我們不斷前進的過程中，我們的願景始終如一，即成為偉大的全球品牌的創造者，讓人們的生活和世界變得更美好的品牌。我們的品牌建立模式完全以打造出色的產品、講述精彩的故事和推動日常業務為中心。為了實現我們的願景，我們繼續投資於執行這一新模式所需的能力，加強我們的人才、見解、流程和工具。

I’d like to spend a few minutes now providing an update on this important work and share some real time examples of the positive momentum in the business today. Our proof points that we believe will ultimately lead to an inflection to growth and the successful turnaround of Wolverine World Wide. Starting with our number one priority, designing awesome style led trend like products that are not only innovative, but also priced right and placed right.

我現在想花幾分鐘時間介紹這項重要工作的最新情況，並分享一些當今業務積極勢頭的即時範例。我們相信我們的證據最終將導致 Wolverine World Wide 的成長和成功轉虧為盈。從我們的首要任務開始，設計出令人驚嘆的風格引領潮流的產品，這些產品不僅具有創新性，而且價格合理且位置正確。

As always, it begins with the consumer. Our brands are actively incorporating a stronger dose of market and consumer insights into their product development processes and becoming more externally focused, leveraging the collective, our recently established center of excellence for elevated trend, features and color forecasting as well as enhanced consumer testing.

一如既往，一切從消費者開始。我們的品牌正在積極地將更強大的市場和消費者洞察納入其產品開發流程，並更加註重外部，利用我們最近建立的卓越中心來提升趨勢、功能和色彩預測以及增強消費者測試。

In addition, we’re bolstering our talent and keep brand product roles and modernizing our tool set with the rollout of a new best-in-class digital product line management platform, which remains on track to be deployed across our portfolio after being piloted in Merrell.

此外，我們正在增強我們的人才，保持品牌產品角色，並透過推出新的一流數位產品線管理平台來實現我們的工具集現代化，該平台在試點後仍有望在我們的產品組合中部署在梅雷爾.

Now onto some examples of proof points on product. Saucony has moved quickly to advance and accelerate development in its product pipeline. The brand started to regain traction with the launch of its new Ride and Guide 17 franchises earlier this year, both of which have performed well at retail. These launches were quickly followed by the very successful introduction of new models in the brand’s elite performance franchise, the Endorphin.

現在來看一些產品證明點的例子。索康尼已迅速採取行動，推動並加速其產品線的開發。隨著今年稍早推出新的 Ride and Guide 17 特許經營權，該品牌開始重新獲得吸引力，這兩個特許經營權在零售方面表現良好。這些產品發布後，該品牌的精英性能係列產品 Endorphin 很快就成功推出了新型號。

And just last week, the brand launched the new Triumph 22 driving growth of over 80% for the franchise in its first week on saucony.com. At the Boston Marathon a few weeks ago, Saucony was the second most worn brand and gained share year-over-year. The brand is also gaining momentum on the lifestyle side with its retro tech collections led by the ProGrid Omni, Shadow and Azure. It’s been a good few months for the brand resulting in upticks in brand heat and demand.

就在上週，該品牌推出了新款 Triumph 22，該系列在 Saucony.com 上市的第一周就帶動了超過 80% 的成長。在幾週前的波士頓馬拉鬆比賽中，索康尼成為第二大磨損品牌，並且份額逐年上升。該品牌在生活方式方面也以其以 ProGrid Omni、Shadow 和 Azure 為首的復古科技系列而勢頭強勁。對於該品牌來說，這幾個月表現不錯，品牌熱度和需求都有所上升。

This summer, the brand plans to launch the Hurricane 24 and we’re already eager for the next additions of all these key franchises in 2025. The brand is supercharging its innovation pipeline and elevating its design, all while taking a more thoughtful and strategic approach than any opportunities the brand has in a very attractive and growing category.

今年夏天，該品牌計劃推出 Hurricane 24，我們已經迫不及待地期待 2025 年所有這些主要特許經營權的下一個增加。該品牌正在加強其創新管道並提升其設計，同時採取比該品牌在一個非常有吸引力且不斷增長的類別中擁有的任何機會都更加深思熟慮和更具戰略性的方法。

The other brands in the portfolio are close behind. For Merrell, the Moab Speed 2, which is recently recognized as an ISPO Award for the best new product in the hiking category, modernizes the trail by incorporating the beloved fit and comfort of the Moab into a faster, lighter and more athletic silhouette.

產品組合中的其他品牌緊隨其後。對於Merrell 來說，Moab Speed 2 最近被授予ISPO 遠足類最佳新產品獎，它通過將Moab 備受喜愛的貼合性和舒適性融入到更快、更輕、更具運動感的輪廓中，使步道現代化。

It is the brand’s biggest story this year and is driving strong sell through today at key wholesale accounts and at merrell.com. This performance is helping generate increased interest in the marketplace and continued market share gains for the category leader. On the lifestyle front, Merrell’s wrap collection continues to outpace our expectations, selling out with each delivery of new inventory.

這是該品牌今年最大的故事，今天在主要批發客戶和 merrell.com 上推動了強勁的銷售。這一業績有助於提高市場興趣，並持續增加該類別領導者的市場份額。在生活方式方面，Merrell 的包裹系列繼續超出我們的預期，每次交付新庫存時都銷售一空。

Having proven the concept at merrell.com, we now plan to thoughtfully expand its distribution to our wholesale accounts both in the US and around the world. We’re also fast tracking new styles for wrap next year, especially for her, including mules and a trend-right Mary Jane.

在 merrell.com 上證明了這個概念後，我們現在計劃精心地將其分銷範圍擴大到我們在美國和世界各地的批發帳戶。我們也將快速追蹤明年的新裹身款式，尤其是針對她的款式，包括穆勒鞋和潮流瑪麗珍鞋。

Finally, Wolverine brand’s Trade Wedge, Rancher and Reforce franchise are all performing well today, with both the Trade Wedge and Rancher consistently beating our sell through forecasts and the Reforce off to a solid start at wolverine.com.

最後，Wolverine 品牌的 Trade Wedge、Rancher 和 Reforce 特許經營權今天都表現良好，Trade Wedge 和 Rancher 均持續超過我們的銷售預測，而 Reforce 在 wolverine.com 上取得了良好的開局。

Going forward, the brand has plans to expand their product franchises, most notably introducing significant new innovation to the western category later this year, as that is an important consumer trend.

展望未來，該品牌計劃擴大其產品系列，最引人注目的是今年稍後向西方類別推出重大創新，因為這是一個重要的消費趨勢。

To win in today’s market, brands need to do more than just build awesome products. They also have to tell amazing stories, and we’re focused on telling stories that excite consumers about our brands as well as our products. As with the product process, the consumer now sits at the center of our marketing approach.

為了贏得當今市場，品牌需要做的不僅僅是打造出色的產品。他們也必須講述精彩的故事，而我們專注於講述能夠激發消費者對我們的品牌和產品感興趣的故事。與產品流程一樣，消費者現在處於我們行銷方法的中心。

Our teams are utilizing consumer insights at the very start of creative development to create more compelling storytelling, and consumer testing is now being leveraged throughout the process, including evaluating creative effectiveness prior to a campaign’s launch.

我們的團隊在創意開發之初就利用消費者洞察來創造更引人注目的故事，並且現在在整個過程中利用消費者測試，包括在活動啟動之前評估創意效果。

To lead our execution here, we’ve hired new consumer focused marketing leaders for both Merrell and Sweaty Betty over the last six months with plans to place a new marketing leader for Saucony shortly.

為了領導我們的執行，我們在過去六個月中為 Merrell 和 Sweaty Betty 聘請了新的以消費者為中心的營銷領導者，併計劃很快為 Saucony 任命一位新的營銷領導者。

In addition to leveraging the collective to ensure we share best practices and insights across the portfolio. We’re also evolving towards a better, full funnel approach to marketing investment and campaign objectives that balance functional product stories with brand building messages. It is vital that we build brand equity and deepen emotional connections with our consumers.

除了利用集體來確保我們在整個產品組合中分享最佳實踐和見解。我們也正在朝著一種更好的、完整的漏斗方法發展，以實現行銷投資和活動目標，從而平衡功能性產品故事與品牌建立訊息。建立品牌資產並加深與消費者的情感聯繫至關重要。

We need to compete for both share of closet and share of mind to win in today’s competitive marketplace. A few examples of how we’re telling amazing stories in the market today. Sweaty Betty aims to empower women and just last week, the brand launched its second iteration of the Wear the Damn Shorts campaign to encourage its sisterhood community to be confident and comfortable with their bodies.

我們需要爭奪衣櫃份額和思想份額，才能在當今競爭激烈的市場中獲勝。以下是我們如何在當今市場上講述精彩故事的幾個例子。Sweaty Betty 旨在賦予女性權力，就在上週，該品牌推出了第二次「穿著該死的短褲」活動，鼓勵其姊妹社群對自己的身體充滿信心和舒適。

Last year, the T-shirt featuring the campaign’s tagline was the brand’s most requested T-shirt in its history. This year, the campaign has already driven a 63% increase year-over-year in shorts revenue and a 52% sell through of the T-shirt since launch. The campaign has delivered over 30 million impressions over 1.5 million video views. In total, Sweaty Betty has driven nearly a 40% increase in paid impressions globally year-to-date, and the brand continues to resonate with its core consumer.

去年，印有該活動口號的 T 卹是品牌史上最受歡迎的 T 卹。今年，自推出以來，該活動已使短褲收入年增 63%，T 卹銷量較去年同期成長 52%。該活動已獲得超過 3000 萬次展示，超過 150 萬次影片觀看。總體而言，Sweaty Betty 今年迄今已使全球付費展示次數成長了近 40%，而該品牌繼續與其核心消費者產生共鳴。

Saucony kicked off this spring with a successful Marathon’s campaign, which encouraged consumers to drop their phones and hit the pavement, driving over 1 billion impressions. More recently, the brand engaged its running community at the London Marathon through a host of events and activations, generating well over 1 million impressions and helping fuel all-time record search interest for the brand in the UK.

Saucony 以一場成功的馬拉鬆活動拉開了今年春天的序幕，該活動鼓勵消費者放下手機，走上人行道，帶來了超過 10 億次展示。最近，該品牌透過一系列活動和活動與倫敦馬拉松賽上的跑步社群互動，產生了超過 100 萬次展示次數，並幫助推動該品牌在英國的搜尋興趣創下歷史新高。

Year-to-date global search interest for Saucony is up over 20% compared to 2023, and this is all ahead of Saucony being named the presenting sponsor for this year’s London 10K. And our many activations planned to coincide with this importance partnership.

與 2023 年相比，今年迄今為止，索康尼的全球搜尋熱度增長了 20% 以上，而這一切都發生在索康尼被任命為今年倫敦 10K 賽事的讚助商之前。我們的許多活動計劃與這一重要的合作夥伴關係同時進行。

And last Merrell just launched its biggest campaign of the year. Good things await, inviting consumers to experience the simple power of being outside. This campaign meets the consumer where and when they want to be engaged, either in their social channels, on connected TV, in print or in store. It’s the most comprehensive marketing campaign in the brand’s history, generating over 7 billion meeting impressions so far and helping drive strength and interest in the brand. As the global leader in hike, it’s incumbent upon the brand to drive innovation and heat in the category, and I’m encouraged by the progress we’re making in Merrell.

去年，梅雷爾剛推出了今年最大的活動。美好的事物正在等待消費者，邀請消費者體驗戶外的簡單力量。該活動滿足了消費者想要參與的地點和時間，無論是在社交管道、連網電視、印刷品或商店。這是該品牌史上最全面的行銷活動，迄今已產生超過 70 億次會議印象，有助於增強品牌實力和興趣。作為健行領域的全球領導者，該品牌有責任推動該類別的創新和熱度，我對邁樂所取得的進步感到鼓舞。

Finally, our teams are intent on driving the business each and every day. We have a renewed focus on strengthening our relationships with our global distribution network, both in the US and around the world. We continue to hold strategic [topsoil] meetings with our key domestic retail partners, and in March 16 of our key international partners visited our campus here in Grand Rapids for strategic planning summit.

最後，我們的團隊致力於每天推動業務發展。我們重新關注加強與美國和世界各地的全球分銷網絡的關係。我們繼續與我們的主要國內零售合作夥伴舉行策略[表土]會議，3月16日，我們的主要國際合作夥伴參觀了我們位於大急流城的園區，參加戰略規劃高峰會。

This was a first of its kind event in our company’s history, and the first time we’ve hosted a group like this on campus since the pandemic. To further support our partners around the world and drive the business, just last week, we announced new license agreements for Merrell and Saucony kids footwear, along with Merrell apparel and accessories.

這是我們公司歷史上首次舉辦這類活動，也是自疫情爆發以來我們第一次在校園內舉辦這樣的活動。為了進一步支持我們在世界各地的合作夥伴並推動業務發展，就在上週，我們宣布了 Merrell 和 Saucony 兒童鞋類以及 Merrell 服裝和配件的新許可協議。

These new agreements will help us deliver better, fuller assortments and more effectively and efficiently realize the full potential of our brands globally. In collaboration with our longtime partner in Japan, Merrell opened its first of its kind flagship store last fall in Harajuku in Tokyo, one of the very best and most influential retail districts in the world. The store has outperformed its plan since opening, leading to the opening of a new store in nearby Shibuya Scramble Square at the beginning of March, which successfully captured a younger consumer, driven a more balanced head-to-toe sales mix and is significantly exceeding its plan since opening.

這些新協議將幫助我們提供更好、更齊全的產品組合，並更有效、更有效率地在全球範圍內充分發揮我們品牌的潛力。去年秋天，Merrell 與我們在日本的長期合作夥伴合作，在東京原宿開設了第一家同類旗艦店，這是世界上最好、最有影響力的零售區之一。自開業以來，該店的表現超出了計劃，導致三月初在附近的澀谷 Scramble Square 開設了一家新店，成功吸引了年輕消費者，帶動了從頭到腳銷售組合更加平衡，並大幅超出了預期。開業以來的計劃。

The strategy in Japan is helping reposition, modernize and energize Merrell and we’re taking these learnings to other brands and markets in the portfolio. Here in the US, Saucony is expanding into meaningful new lifestyle distribution over the course of the year. As a result of the heat it's generating with trend-right, retro tech designs from its archives. The brand is also opening its aperture to capture the broader global running lifestyle opportunity well beyond niche elite offerings.

日本的策略正在幫助 Merrell 重新定位、現代化並為其註入活力，我們正在將這些經驗運用到產品組合中的其他品牌和市場中。在美國，索康尼今年將拓展有意義的新生活方式分銷領域。由於其檔案中的潮流、復古科技設計所產生的熱度。該品牌也正在開放視野，以捕捉更廣泛的全球跑步生活方式機會，而不僅僅是小眾精英產品。

In February, I said I was bullish on Saucony's future prospects driven by a much improved innovation pipeline, and I'm even more excited today on the potential of the brand moving forward. We're also making important progress cleaning up the marketplace, spearheaded by our newly created brand protection team. To date, we've closed or restricted over 30 customers and partners and shuttered approximately 400 retail accounts. This will continue as we work to be great brand managers coupled with a stronger focus on sell through versus sell in and our brands better managing supply and demand in the marketplace.

今年二月，我曾說過，我看好索康尼在創新管道大幅改善的推動下的未來前景，今天我對該品牌未來的發展潛力感到更加興奮。在我們新成立的品牌保護團隊的帶領下，我們在清理市場方面也取得了重要進展。到目前為止，我們已關閉或限制了 30 多個客戶和合作夥伴，並關閉了約 400 個零售帳戶。隨著我們努力成為優秀的品牌經理，更加重視銷售而不是銷售，並且我們的品牌更好地管理市場上的供需，這種情況將繼續下去。

While awesome products and amazing stories are critical to building great brands, I'm equally focused on aligning the global teams to drive the business each and every day. Our team's good work is translating into important early proof points and helping to build a new, firmer foundation for the future.

雖然出色的產品和精彩的故事對於打造偉大的品牌至關重要，但我同樣專注於協調全球團隊以推動每天的業務發展。我們團隊的出色工作正在轉化為重要的早期證據，並幫助為未來奠定新的、更堅實的基礎。

Before I turn the call over to Mike, I'd like to comment on our other announcement this morning. After a comprehensive search, I'm pleased to announce that Taryn Miller will succeed Mike Stornant as the Company's Chief Financial Officer. Taryn brings over 25 years of global financial and operational experience along with strategic thought leadership to Wolverine World Wide. I'm excited for her to join the executive team at this important moment in our transformation and look forward to you all meeting and working with Taryn. She's a tremendous addition to our team.

在將電話轉給麥克之前，我想對我們今天早上的其他公告發表評論。經過全面的搜尋後，我很高興地宣布塔林·米勒 (Taryn Miller) 將接替邁克·斯托南特 (Mike Stornant) 擔任公司首席財務官。Taryn 為 Wolverine World Wide 帶來了超過 25 年的全球財務和營運經驗以及策略性想法領導力。我很高興她能在我們轉型的這個重要時刻加入執行團隊，並期待大家與 Taryn 會面並合作。她對我們團隊來說是一個巨大的補充。

I'd also like to take this opportunity to personally thank Mike. He's dedicated nearly three decades of his life to the company, including the last nine years as our CFO. Since I stepped into this seat last August, his deep knowledge of the business, drive and undeniable grit have been invaluable to me and the company as we work to stabilize and re-imagine the company. No one is more passionate about Wolverine's success and no one works harder than Mike. Thank you, Mike, for everything you've done and for your commitment to a smooth and seamless transition moving forward over the next several months.

我還想藉此機會親自感謝麥克。他將自己近三十年的人生奉獻給了公司，其中包括擔任我們財務長的最後九年。自從我去年八月擔任這個職位以來，在我們努力穩定和重新構想公司的過程中，他對業務的深入了解、幹勁和不可否認的勇氣對我和公司來說都是無價的。沒有人比麥克更熱衷於金鋼狼的成功，也沒有人比麥克更努力。麥克，感謝您所做的一切，以及您對未來幾個月順利、無縫過渡的承諾。

I, along with everyone at Wolverine World Wide, wish you and Amy the very best in your coming retirement. It's well deserved and we'll miss you.

我與金剛狼世界的所有人一起祝福您和艾米在即將到來的退休生活中一切順利。這是當之無愧的，我們會想念你的。

With that, I'm going to hand it over to Mike to review our performance in the first quarter and expectations for the year in more detail. Mike?

接下來，我將把它交給麥克，更詳細地回顧我們第一季的業績和今年的預期。麥克風？

Thank you for those comments, Chris, and good morning to everyone on the call.

感謝您的評論，克里斯，祝所有參加電話會議的人早安。

This morning I'll start with a review of the first quarter followed by our expectations for fiscal 2024. We are very encouraged by our first quarter results. We delivered or exceeded our key financial objectives and saw improvement across performance metrics that support the stabilization of the business. First quarter revenue for our ongoing business of $390.8 million was above our outlook of $360 million.

今天早上，我將首先回顧第一季度，然後是我們對 2024 財年的預期。我們對第一季的業績感到非常鼓舞。我們實現或超越了我們的關鍵財務目標，並看到支持業務穩定的績效指標有所改善。我們持續業務的第一季營收為 3.908 億美元，高於我們預期的 3.6 億美元。

Demand trends and selling execution continued to improve. Our wholesale performance in Europe was especially strong thanks to actions taken by our global supply chain team to mitigate logistics delays related to the Suez Canal. Approximately $8 million of revenue shifted from Q2 into Q1 as a result.

需求趨勢和銷售執行力持續改善。由於我們的全球供應鏈團隊為減少與蘇伊士運河相關的物流延誤而採取的行動，我們在歐洲的批發表現尤其強勁。因此，大約 800 萬美元的收入從第二季轉移到第一季。

As a reminder, Q1 2023 included more than $75 million of revenue that did not repeat in the first quarter of this year, including excessive end of life inventory liquidation, a timing shift in international shipments and business model changes. Adjusted gross margin of 46.5% was better than our outlook of approximately 46% and improved 540 basis points versus last year. A healthier sales mix, lower e-commerce promotions and the benefit from the supply chain cost initiatives executed last year all contributed to this record gross margin performance.

需要提醒的是，2023 年第一季包括超過 7,500 萬美元的收入，這些收入在今年第一季沒有重複，包括過度的報廢庫存清算、國際發貨時間的變化和商業模式的變化。調整後毛利率為 46.5%，優於我們約 46% 的預期，比去年提高了 540 個基點。更健康的銷售組合、較低的電子商務促銷活動以及去年執行的供應鏈成本計劃的好處都促成了創紀錄的毛利率表現。

As a reminder, first quarter gross margin was planned to be the highest of any quarter this year due mostly to the lower mix of international distributor shipments in the quarter which carry a lower gross margin. Adjusted SG&A expense of $162 million was in line with our expectations given the higher revenue and includes a $3 million year-over-year increase in investments for demand creation and technology.

提醒一下，第一季的毛利率預計將是今年任何季度中最高的，主要是因為該季度國際分銷商的出貨量組合較低，毛利率較低。鑑於營收增加，調整後的 SG&A 費用為 1.62 億美元，符合我們的預期，包括需求創造和技術投資年增 300 萬美元。

Adjusted operating margin of 5% exceeded our outlook for the quarter and adjusted diluted earnings per share for the quarter were $0.05 and better than expected. The health of our balance sheet continues to improve and we exceeded our expectations for inventory, cash flow and net debt for the quarter. Inventory for the ongoing business was $354 million, down 40% from last year as a result of continued progress on rightsizing inventory, nimble supply chain execution and improved planning. Net debt was $685 million, down approximately $380 million versus last year. Bank-defined leverage was 3.1 times at the end of the first quarter.

調整後營業利潤率為 5%，超出了我們對本季的預期，本季調整後攤薄每股收益為 0.05 美元，優於預期。我們的資產負債表狀況持續改善，本季庫存、現金流量和淨債務超出了我們的預期。由於在調整庫存、靈活的供應鏈執行和改進規劃方面不斷取得進展，持續業務的庫存為 3.54 億美元，比去年下降 40%。淨債務為 6.85 億美元，比去年減少約 3.8 億美元。第一季末銀行定義的槓桿率為3.1倍。

Let me now provide details on our outlook for 2024. Our guidance reflects the expected performance of our ongoing business and now adjust for the recently announced licensing model for our Merrell and Saucony kids business. This change in business model will further simplify our operations and leverage our newly established global licensing team. This change is expected to reduce 2024 revenue by approximately $20 million and will have a neutral impact on earnings in 2024 as we transition the business to our new partner.

現在讓我詳細介紹我們對 2024 年的展望。我們的指導反映了我們正在進行的業務的預期業績，現在針對我們最近宣布的 Merrell 和 Saucony 兒童業務的許可模式進行了調整。業務模式的這項變更將進一步簡化我們的營運並利用我們新成立的全球授權團隊。這項變更預計將使 2024 年收入減少約 2,000 萬美元，並且隨著我們將業務轉移給新合作夥伴，對 2024 年收益產生中性影響。

Fiscal 2024 revenue for our ongoing business is now expected in the range of $1.68 billion to $1.73 billion. This compares to 2023 revenue for our ongoing business of $1.99 billion and represents a decline of 14.4% at the midpoint of the range. Discrete items in 2023 totaling $165 million in revenue will not recur in 2024. These include approximately $70 million of extraordinary end of life inventory liquidation heavily weighted to the first half of the year, approximately $55 million in revenue prior to certain business model changes, including the transition of our China joint venture to a distributor model for Merrell and Saucony, and approximately $40 million in a timely shift of international distributor shipments that benefited Q1 in 2023.

目前，我們現有業務的 2024 財年營收預計在 16.8 億美元至 17.3 億美元之間。與 2023 年我們持續業務的收入 19.9 億美元相比，該範圍的中位數下降了 14.4%。2023 年總收入為 1.65 億美元的離散項目在 2024 年將不再出現。其中包括上半年的約 7000 萬美元的特別報廢庫存清算，以及在某些業務模式發生變化之前的約 5500 萬美元的收入，其中包括我們的中國合資企業向 Merrell 和 Saucony 的分銷商模式的轉變，以及約4000 萬美元的國際分銷商發貨及時轉移，使2023 年第一季受益。

We expect the transition to a licensing model for Merrell and Saucony Kids will result in approximately $20 million of 2023 revenue that will not recur in 2024. Excluding these discrete items and licensing business model changes, the midpoint decline in full year revenue will be approximately 5.6%.

我們預計 Merrell 和 Saucony Kids 向授權模式的過渡將帶來 2023 年約 2,000 萬美元的收入，而這些收入在 2024 年不會再出現。排除這些離散項目和授權業務模式的變化，全年收入中點下降約為 5.6%。

Our revenue outlook for our groups and brands remains unchanged. As a reminder, we expect Active Group revenue to decline mid-teens. Merrell is expected to decline in the low-double digit range with inflection to growth expected in the second half of the year. Saucony is expected to decline in the low-20% range with sequential improvement as we move through the back half of the year, and Sweaty Betty is expected to be approximately flat. Work Group revenue is expected to decline high-single digits, with Wolverine brand expected to be down mid-single digits.

我們對集團和品牌的收入前景保持不變。提醒一下，我們預計 Active Group 的收入將下降到十幾歲左右。Merrell 預計將出現低兩位數的下滑，預計下半年將出現成長轉折點。隨著今年下半年的到來，Saucony 預計將下降 20% 左右，並出現環比改善，而 Sweaty Betty 預計將大致持平。Work Group 收入預計將下降高個位數，而 Wolverine 品牌預計將下降中個位數。

Turning to gross margin. Adjusted gross margin is expected to be approximately 44.5% at the midpoint of the outlook range, up approximately 460 basis points compared to 2023 and a record for the company. We continue to expect significant reductions in supply chain and product costs. The benefit of healthier inventory and a better mix of full price sales partially offset by foreign currency headwinds that impact inventory costs.

轉向毛利率。調整後毛利率預計約 44.5%，處於展望範圍的中點，較 2023 年上升約 460 個基點，創公司歷史新高。我們繼續預計供應鏈和產品成本將大幅降低。更健康的庫存和更好的全價銷售組合的好處部分被影響庫存成本的外幣逆風所抵消。

Adjusted selling and general administrative expenses are now expected to be approximately $640 million at the midpoint of the outlook range, or 37.5% of sales, compared to $716 million in 2023, or 36% of sales. The lower operating cost structure includes $95 million of savings from the 2023 restructuring and other profit initiatives and $10 million from the model change for our Kids business. This is partially offset by incremental investment for demand creation and modern systems, normalized incentive compensation expense and general inflation.

目前，調整後的銷售和一般管理費用預計約為展望範圍中點的 6.4 億美元，即銷售額的 37.5%，而 2023 年為 7.16 億美元，即銷售額的 36%。較低的營運成本結構包括 2023 年重組和其他利潤措施節省的 9,500 萬美元，以及兒童商業模式變革節省的 1,000 萬美元。這部分被需求創造和現代系統的增量投資、正常化的激勵補償費用和整體通貨膨脹所抵消。

Adjusted operating margin is expected to be approximately 7% at the midpoint of the outlook range, compared to 3.9% in 2023. Interest and other expenses are projected to be approximately $40 million, down from $63 million in 2023 and benefiting from the significant debt reduction achieved to date. The effective tax rate is projected to be approximately 18%.

調整後營業利潤率預計約為 7%，處於展望範圍的中點，而 2023 年為 3.9%。利息和其他支出預計約為 4,000 萬美元，低於 2023 年的 6,300 萬美元，並受益於迄今為止實現的債務大幅削減。有效稅率預計約為18%。

As a result of these key assumptions adjusted diluted earnings per share is expected to be in the range of $0.65 to $0.85 including a $0.10 negative impact from foreign currency exchange fluctuations. This compares to $0.15 in 2023 for our ongoing business. Working capital and cash flow optimization remain a priority in 2024. We now expect inventory to decline by at least $75 million during the year as we continue to work through specific areas of excess inventory.

根據這些關鍵假設，調整後的攤薄每股收益預計在 0.65 美元至 0.85 美元之間，其中包括外匯波動帶來的 0.10 美元負面影響。相比之下，2023 年我們現有業務的成本為 0.15 美元。營運資本和現金流優化仍然是 2024 年的首要任務。我們現在預計，隨著我們繼續解決特定領域的庫存過剩問題，今年庫存將減少至少 7,500 萬美元。

On this topic as the industry faces new and evolving product regulations related to PFAS, we are taking a proactive approach. In partnership with our key retail partners and our own direct channels we are responsibly working through this inventory. We expect to be compliant with PFAS restrictions when and where required in the future.

在這個主題上，隨著產業面臨與 PFAS 相關的新的和不斷變化的產品法規，我們正在採取積極主動的方法。我們與我們的主要零售合作夥伴和我們自己的直接管道合作，負責任地處理這些庫存。我們希望將來在需要的時間和地點遵守 PFAS 限制。

Operating free cash flow is expected in the range of $110 million to $130 million. We now expect net debt to improve by $175 million to $565 million at year end with bank-defined leverage below 3 times.

營運自由現金流預計在 1.1 億至 1.3 億美元之間。我們現在預計年底淨債務將減少 1.75 億美元至 5.65 億美元，銀行定義的槓桿率將低於 3 倍。

Shifting to our outlook for the second quarter, we expect second quarter revenue of approximately $410 million, a decline of approximately 21%. As announced earlier this year we are closing our Louisville distribution center and currently moving our Saucony inventory to our California distribution center. We expect this transition to result in a shift in revenue and profit from Q2 into Q3.

轉向我們對第二季的展望，我們預計第二季營收約為 4.1 億美元，下降約 21%。正如今年稍早宣布的那樣，我們將關閉路易斯維爾配送中心，目前將索康尼庫存轉移到加州配送中心。我們預計這一轉變將導致收入和利潤從第二季轉移到第三季。

Second quarter gross margin is expected to be approximately 43%, up 390 basis points from last year. This would result in first half gross margin slightly above 44.5%, which is in line with our outlook for the full year. We expect second quarter adjusted operating margin to be approximately 5% and adjusted diluted earnings per share to be approximately $0.10. The order book for our global wholesale and distributor businesses is developed as expected when we established our full year guidance in February, and the rate of replenishment orders has continued to improve.

第二季毛利率預計約43%，較去年上升390個基點。這將導致上半年毛利率略高於 44.5%，這與我們對全年的預期一致。我們預計第二季調整後營業利潤率約為 5%，調整後稀釋每股收益約為 0.10 美元。我們的全球批發和分銷業務的訂單簿發展符合我們二月份制定全年指引時的預期，補貨訂單率持續改善。

In addition, our e-commerce businesses are expected to inflect to growth in the second quarter, with growth also expected in Q3 and Q4. As a result, we continue to expect sequential revenue improvement through the back half of the year with year-over-year growth in Q4. We also expect second half gross margin and SG&A expense to be similar to the first half, which will drive positive SG&A and operating margin leverage in the second half of the year.

此外，我們的電子商務業務預計將在第二季成長，第三季和第四季也將成長。因此，我們繼續預計下半年營收將持續改善，第四季將實現年增。我們也預期下半年的毛利率和銷售及一般費用 (SG&A) 費用將與上半年相似，這將推動下半年積極的銷售及一般費用 (SG&A) 和營業利潤率槓桿率。

Let me summarize the key points I hope you'll take away this morning. 2024 is a year of transition for the company as we expect significant gross margin expansion will precede an inflection to growth in the back half of the year and we set our brands up to accelerate in 2025.

讓我總結一下希望您今天早上能夠掌握的要點。 2024 年是公司轉型的一年，因為我們預計毛利率將在下半年出現轉折點，並且我們的品牌將在 2025 年加速成長。

We recognize that improved and sustainable gross margin is necessary to create capacity for consistent brand investment into the future. We are balancing the need for meaningful earnings and cash flow improvement with critical reinvestments required to modernize our systems, drive demand creation and build other important capabilities.

我們認識到，提高和可持續的毛利率對於創造未來持續品牌投資的能力是必要的。我們正在平衡有意義的收入和現金流改善的需求與系統現代化、推動需求創造和建立其他重要能力所需的關鍵再投資。

And finally, after a solid performance in Q1, we now have better visibility to future order demand, more stable operating trends, and strong consumer reaction to our new product introductions. This progress gives us further confidence in our outlook for the rest of the year.

最後，經過第一季的穩健表現，我們現在對未來的訂單需求有更好的了解，營運趨勢更穩定，消費者對我們推出的新產品反應強烈。這項進展讓我們對今年剩餘時間的前景更加充滿信心。

Before I turn the call back to Chris, I want to personally welcome Taryn Miller to Wolverine as our new CFO. She brings the valuable experience needed to help lead the ongoing transformation of this company and she's a tremendous addition to our leadership team. I am fully committed to working with her and Chris during this important transition and I'm excited to support the company in my new role over the coming months.

在我將電話轉回給 Chris 之前，我想親自歡迎 Taryn Miller 加入 Wolverine，擔任我們的新財務長。她帶來了幫助領導公司持續轉型所需的寶貴經驗，她是我們領導團隊的重要補充。在這一重要過渡期間，我完全致力於與她和克里斯合作，我很高興在未來幾個月內以我的新角色支持公司。

Now I'll turn the call back to Chris.

現在我將把電話轉回給克里斯。

Thanks Mike. In closing, I'm encouraged by the progress we've made in just a few quarters, and even more excited that we're seeing early proof points that our strategy in execution are beginning to work.

謝謝邁克。最後，我對我們在短短幾個季度內取得的進展感到鼓舞，更令我興奮的是，我們看到了早期的證據，表明我們的執行策略正在開始發揮作用。

On our last call, I said 2024 would be a pivotal year for the company and that our teams were motivated by both the challenges and opportunities, I believe this is even more true today. There's no doubt we have more work to do, but I believe we've taken the right steps and are on the right path to transform Wolverine World Wide, all guided by becoming great brand builders and ultimately delivering greater returns for our shareholders.

在我們上次的電話會議上，我說 2024 年將是公司的關鍵一年，我們的團隊受到挑戰和機會的激勵，我相信今天更是如此。毫無疑問，我們還有更多的工作要做，但我相信我們已經採取了正確的步驟，並且正在走上改造Wolverine World Wide 的正確道路，所有這些都以成為偉大的品牌建設者並最終為我們的股東帶來更大的回報為指導。

Thank you for taking time to be with us this morning.

感謝您今天早上抽出時間來和我們在一起。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Mitch Kummetz, Seaport Research.

謝謝。我們現在開始問答環節。（操作員說明）Mitch Kummetz，海港研究中心。

Yes. Thanks for taking my question and Mike really enjoyed working with you over the years and wish you the best of luck.

是的。感謝您提出我的問題，麥克非常享受這些年來與您的合作，並祝您好運。

So let me start just on the quarter it looks like you guys beat revenues, beat your plan by maybe $30-plus million. It sounded like maybe there was $8 million a pull-forward in Europe. Can you say if there was any pull-forward outside of Europe like in the US? And then what really drove the beat, either by brand or by channel? Any more color there and then I've got to follow.

因此，讓我從看起來你們超出收入、超出計劃的季度開始，也許超出了 30 多萬美元。聽起來歐洲的一次拉動可能有 800 萬美元。您能說一下歐洲以外地區是否有像美國那樣的拉力嗎？那麼到底是什麼真正推動了這個趨勢，無論是按品牌還是按管道？如果還有更多顏色，我就必須跟隨。

Sure. Thanks, Mitch, for the comments.

當然。謝謝米奇的評論。

I'll say over performance really across the board. I think that was an important theme for the first quarter, whether that be at the brand level or the regional level. The call out on the pull-forward or the timing shift for the Europe wholesale business really had to do with how we planned or sort of hedged our bet a little bit on the timing of the logistics issues with the Suez Canal. We overcame that and we called that out as about an $8 million shift.

我想說的是，性能確實是全面的。我認為這是第一季的一個重要主題，無論是在品牌層面還是在區域層面。對歐洲批發業務的提前或時間轉移的呼籲實際上與我們如何計劃或在某種程度上對沖我們對蘇伊士運河物流問題時間的賭注有關。我們克服了這個問題，並將其稱為大約 800 萬美元的轉變。

Say there may be $2 million or $3 million more across the business. Nothing significant to call out, but a little bit more in terms of timing. Just not so much pulling forward shipments, but just the way we were able to move goods through the warehouse and some of the demand that picked-up later in the quarter, which we were able to kind of satisfy with some early shipments, so nothing dramatic outside of that issue.

假設整個業務可能會增加 200 萬或 300 萬美元。沒有什麼值得注意的，但在時間安排上有一點多。只是沒有那麼多地提前發貨，而是我們能夠通過倉庫運送貨物的方式以及本季度晚些時候回升的一些需求，我們能夠通過一些早期發貨來滿足這些需求，所以沒有什麼除了這個問題之外，還有戲劇性的事情發生。

And then on the guide, you adjust for the $20 million in the licensing change on Kids; it looks like the sales guide is unchanged, given some upside in the first quarter and particularly better replenishment trends I'm curious why you didn't flow through more of the 1Q beat or kind of raise your outlook on the year based on those improving revenue trends? Can you address that and also maybe talk about the impact of the -- or quantify the impact of the Saucony shift from 2Q to 3Q?

然後在指南中，您針對兒童版授權變更調整了 2000 萬美元；考慮到第一季的一些上行空間以及特別更好的補貨趨勢，銷售指南看起來沒有變化，我很好奇為什麼你沒有經歷更多的第一季節拍，或者根據這些改善提高你對今年的展望收入趨勢？您能否解決這個問題，並討論索康尼從第二季度轉向第三季的影響，或量化其影響？

Sure, I'll take the first and Mike can talk about the timing thing. I think we certainly were encouraged by some acceleration in the trends as we moved through the quarter. And how we were thinking about how the quarter might play out and certainly how the year may play out. We've talked about increasing improvements in replenishment at wholesale. We've talked about an acceleration on direct-to-consumer business, which leaves us all sort of encouraged about the work that we're doing is getting traction and we're working on returning the company back to growth.

當然，我會選擇第一個，麥克可以談談時間安排的問題。我認為，隨著本季的發展，趨勢的一些加速肯定讓我們感到鼓舞。以及我們如何考慮本季的情況以及今年的情況。我們已經談到了批發補貨方面的不斷改進。我們已經談到了直接面向消費者業務的加速發展，這讓我們感到鼓舞，因為我們正在做的工作正在受到關注，我們正在努力讓公司恢復成長。

At the same time, our year is predicated on a back half inflection, sequential improvement quarter-by-quarter, which we've talked consistently about, and now we're actually in the place. Now we're beginning to chase inventory. We worked really, really hard as you know, as part of the turnaround is to really better manage the inventory piece and we've done a good job at that. And we've worked to maintain lean just because of where we have been and where we thought we needed to go.

同時，我們今年的預測是後半段的轉折點，逐季度的連續改善，我們一直在談論這一點，現在我們實際上已經做到了這一點。現在我們開始追逐庫存。如您所知，我們工作非常非常努力，因為轉變的一部分是更好地管理庫存，我們在這方面做得很好。我們一直在努力保持精益，只是因為我們已經取得了進展，並且我們認為我們需要前進。

Now that we're seeing an inflection in some proof points of growth, we're beginning to chase inventories. We're still taking a conservative approach. I think hopefully it came through in my prepared remarks that while the quarter was a beat to expectations, it was a relatively low bar and we still have work to go do as a company to get back to where we need to be as an organization. But early proof points are encouraging and we certainly are happy about the traction that we have, at the same time we have a lot of the year left to go.

現在我們看到一些成長點出現轉折點，我們開始追逐庫存。我們仍然採取保守的態度。我希望我在準備好的演講中能夠表達出這一點：雖然本季的表現超出了預期，但這是一個相對較低的標準，作為一家公司，我們仍然有很多工作要做，才能回到我們作為一個組織需要達成的目標。但早期的證據令人鼓舞，我們當然對我們所擁有的牽引力感到高興，同時我們還有很多事情要做。

The second part of your question, Mitch, on the distribution center transition that's just getting underway right now, and so obviously we're being cautious on how that might impact the quarter. I would say just we didn't quantify it in the remarks, but we are kind of thinking in the range of $5 million to $10 million of potential revenue shifts there, but doing everything we can to mitigate that. And the teams are already making great progress on the transition, but just important to call it out because obviously as we get through that over the coming four or five weeks that could have some impact on the flow of goods and chasing some of the demand that Chris has been talking about.

米奇，你問題的第二部分是關於目前剛開始的配送中心轉型，因此顯然我們對這可能對本季產生的影響持謹慎態度。我想說的是，我們沒有在評論中對其進行量化，但我們認為潛在的收入轉移範圍在 500 萬美元到 1000 萬美元之間，但我們正在盡一切努力來減輕這種影響。團隊已經在過渡方面取得了巨大進展，但重要的是要指出這一點，因為顯然，當我們在未來四到五週內完成這一過程時，這可能會對貨物流動產生一些影響，並追逐一些需求克里斯一直在談論。

Having said that, really good coordination with our key accounts and planning this transition and good support from our customers in terms of how we're going to reflow the goods, too.

話雖如此，我們與我們的主要客戶進行了良好的協調，並規劃了這一過渡，並且我們的客戶在我們如何回流貨物方面也提供了良好的支援。

All right. Thanks again.

好的。再次感謝。

Thanks, Mitch.

謝謝，米奇。

Thank you. Laurent Vasilescu, BNP Paribas.

謝謝。洛朗·瓦西萊斯庫，法國巴黎銀行。

Good morning. Thank you very much for taking my question.

早安.非常感謝您回答我的問題。

Chris, you and your team have done a lot of heavy lifting over the last year with divestitures and business model changes like the JV and the licensed business announced a couple of days ago. Curious to know if you're contemplating any more changes over the next six months or if you've reached, you think a steady state point for the business to grow going forward?

克里斯，你和你的團隊在過去的一年裡做了很多繁重的工作，包括資產剝離和商業模式的改變，例如幾天前宣布的合資企業和許可業務。想知道您是否正在考慮在未來六個月內進行更多改變，或者您是否已經達到了業務未來成長的穩定點？

Thank you, Laurent. Appreciate the question.

謝謝你，洛朗。感謝這個問題。

We certainly have done a lot of heavy lifting over the past nine months or so, really focused on stabilizing the business, and we've tried to take sort of a very thoughtful, sequential, systematic approach to what we thought we needed to go to do to both turnaround and then ultimately transform the business. We have done a tremendous amount of things sort of on the back office side in that effort.

在過去的九個月左右的時間裡，我們確實做了很多繁重的工作，真正專注於穩定業務，並且我們嘗試採取一種非常深思熟慮的、連續的、系統化的方法來處理我們認為需要做的事情從而實現扭虧為盈，並最終實現業務轉型。在這方面，我們在後台做了很多事情。

Are we done doing all of those things? I think we certainly have done a lot of them. Will we continue to contemplate other things? I think we will. I think we have to become very active. It is a very fast changing dynamic marketplace and I think we can't afford to get comfortable. And I think we have to keep optimizing the business. And I think we have to keep very focused on what our fewest priorities are and really driving growth. But behind a handful of our brands, and frankly trying to do fewer things, but just do that, do those things better.

我們完成所有這些事情了嗎？我認為我們確實已經做了很多這樣的事情。我們還會繼續思考其他事情嗎？我想我們會的。我認為我們必須變得非常活躍。這是一個瞬息萬變、充滿活力的市場，我認為我們不能安於現狀。我認為我們必須不斷優化業務。我認為我們必須非常關注我們最不重要的優先事項並真正推動成長。但在我們的幾個品牌背後，坦白說，我們試著做更少的事情，但只是這樣做，把這些事情做得更好。

I will tell you, it is refreshing now as we've done a lot of those hard activities and whether selling things or divesting things or restructuring the business, the conversations around here really have really pivoted towards growth and where our brands are in the marketplace. How are we chasing inventories? What's working from a demand creation standpoint? How are we doing on DTC.

我會告訴你，現在令人耳目一新，因為我們已經做了很多艱苦的活動，無論是出售東西、剝離東西還是重組業務，這裡的對話確實真正轉向了成長以及我們的品牌在市場中的位置。我們如何追庫存？從創造需求的角度來看，什麼是有效的？我們在 DTC 上做得怎麼樣？

So I don't want to say that all of the stabilization work and all of that is done is behind us because I frankly think great companies are always working to optimize. At the same time the conversations here right now are about chasing demand and really becoming awesome brand builders.

所以我不想說所有的穩定工作和所有完成的工作都已經過去了，因為坦白說，我認為偉大的公司總是在努力優化。同時，現在這裡的對話是關於追逐需求並真正成為出色的品牌建立者。

Very helpful, Chris.

非常有幫助，克里斯。

And then if I can zero in on Saucony. Saucony, I appreciate the slides, the 2Q guide. Saucony applies to (inaudible) to be down mid-teens, maybe can you unpack that a bit more? What are you seeing in terms of the order book? How is the one specialty channel doing? Are inventories clean there? Are you seeing growth in some of your retro product? Any color there, Chris, would be very helpful for the audience.

然後我是否可以將索康尼歸零。Saucony，我很欣賞幻燈片和 2Q 指南。索康尼（Saucony）適用於（聽不清楚）十幾歲左右的情況，也許你能再解釋一下嗎？您對訂單簿有何看法？單一專業頻道的表現如何？那裡的庫存乾淨嗎？您的某些復古產品是否有所成長？克里斯，任何顏色都會對觀眾非常有幫助。

Sure. Yes. Thank you. Laurent.

當然。是的。謝謝。洛朗.

Saucony is a fascinating story right now. I remain very encouraged and bullish on the prospect of Saucony. I mentioned that on the last call and we certainly are seeing early proof points of the work that we've done. Really first and foremost, really attacking the product pipeline, bringing innovation back, looking at what categories in which we play and thinking about color and materials, and then really using the archives as a growth vehicle.

索康尼現在是一個引人入勝的故事。我仍然對索康尼的前景感到非常鼓舞和樂觀。我在上次電話會議上提到過，我們確實看到了我們所做工作的早期證據。首先也是最重要的，真正攻擊產品線，帶回創新，看看我們玩什麼類別，思考顏色和材料，然後真正使用檔案作為成長工具。

So there are certainly are some really strong signs that we're seeing good momentum really behind the Ride and Guide 17. The Endorphin collection was an immediate shot in the arm when the brand dropped that a month or so ago. And then just last week we dropped the Triumph 22, which is an awesome new shoe. So there is chatter in the important run specialty channel, and we are seeing our styles begin to tick up.

因此，確實有一些非常強烈的跡象表明，我們看到 Ride and Guide 17 背後的良好勢頭。當該品牌大約一個月前放棄該系列時，內啡肽系列立即成為一劑強心劑。就在上週，我們推出了 Triumph 22，這是一款很棒的新鞋。因此，在重要的跑步專業頻道中，人們議論紛紛，我們看到我們的風格開始有所改善。

There is a nice movement in search interest. For those of you that pay attention to Google search interest, I think we're up 23% year-to-date as a brand which is encouraging. At the same time, we're working to clean up the business that Saucony is. So there are headwinds there around the close up sales that we're anniversary. We had a very low margin profile business in some of the family channel accounts that we have to work on that margin business, and we're working to be less promotional at [dot-com] as well.

搜尋興趣出現了良好的變化。對於那些關注 Google 搜尋熱度的人來說，我認為我們作為一個品牌今年迄今為止增長了 23%，這是令人鼓舞的。同時，我們正在努力清理索康尼的業務。因此，我們週年紀念日的特寫銷售存在一些阻力。我們在一些家庭通路帳戶中的利潤率非常低，我們必須致力於該利潤率業務，並且我們也在努力減少在[dot-com]上的促銷活動。

So I think you have to look under the covers of the Saucony business and not just at the top line, and understand how we're trying to rationalize that business, take a new strategic approach. We're anniversaring some things that are going to go away, but then I would encourage everyone to focus on the new products that we've dropped and the momentum we're driving both behind performance and lifestyle run. And then importantly, the retro tech collection, which is just an amazing gift we have in our archives.

因此，我認為你必須深入了解索康尼業務的幕後，而不僅僅是頂線，並了解我們如何努力使這項業務合理化，採取新的策略方法。我們正在紀念一些即將消失的事情，但我會鼓勵每個人都專注於我們已經放棄的新產品以及我們在性能和生活方式方面所推動的動力。然後重要的是，復古科技系列，這是我們檔案中的令人驚嘆的禮物。

Very helpful. Thank you very much, Chris, for all the color. Best of luck.

非常有幫助。克里斯，非常感謝你提供的所有顏色。祝你好運。

Thanks, Laurent.

謝謝，洛朗。

Thank you. Sam Poser, William's Trading.

謝謝。Sam Poser，威廉貿易公司。

Thank you very much for taking my questions. I just want to follow up on the lifestyle product or the retro product in Saucony, and then I got a couple other questions.

非常感謝您回答我的問題。我只是想跟進索康尼的生活方式產品或復古產品，然後我收到了其他幾個問題。

When you look at sort of the big growth driver over time, is this going to be in more performance running, or do you see it getting a more -- just more scale across call it athletic, specialty and so on?

隨著時間的推移，當你看到某種巨大的成長動力時，這會是在更高的性能跑步中，還是你認為它會變得更大——只是更大的規模，稱之為運動、專業等等？

Yes, great question, Sam.

是的，很好的問題，山姆。

And that has been sort of the big work that we've done in Saucony -- Saucony around strategy, and I think Saucony has an amazing opportunity in front of it. I think for a long-time, the brand was potentially a little bit -- have too much of a myopic focus on the ends of the spectrum. The really Elite Run, which is beautiful innovative product, but the market size just isn't big enough.

這就是我們在索康尼所做的一項重大工作——索康尼圍繞著策略，我認為索康尼面前有一個驚人的機會。我認為在很長一段時間裡，這個品牌可能有點過於短視地關注範圍的兩端。真正的Elite Run，這是一個漂亮的創新產品，但市場規模還不夠大。

And then on the lifestyle side really focused on the collaboration piece, the sneakerhead piece that is very cool but also doesn't have a lot of scale. So as we think about Saucony, we want to maintain great innovative product, which is why the Endorphin 4 collection was so important. And we want to maintain an amazing credibility in sneakerhead culture, which is why we're so glad that we won the collaboration of the year last year with [J-Tips].

然後在生活方式方面，真正關注的是合作單品，運動鞋頭單品非常酷，但也沒有太大的規模。因此，當我們考慮 Saucony 時，我們希望保持出色的創新產品，這就是為什麼 Endorphin 4 系列如此重要的原因。我們希望在運動鞋文化中保持令人驚嘆的信譽，這就是為什麼我們很高興去年贏得了與[J-提示]。

At the same time, the big commercial opportunity for Saucony moves a little bit towards the middle, and that's as performance run as a lifestyle opportunity. And I think you have seen that pivot in us, specifically in color and materialization, and specifically the work around her. At the same time the broader lifestyle opportunity around the original, specifically the retro tech, which currently is in fashion right now.

同時，索康尼的巨大商業機會向中間移動了一點，那就是高性能跑步作為一種生活方式的機會。我想你已經在我們身上看到了這種轉變，特別是在色彩和物質化方面，特別是圍繞著她的工作。同時，圍繞著原創的更廣泛的生活方式機會，特別是目前流行的復古科技。

So I think us opening the aperture on Saucony, thinking about the greater market opportunity, maintaining -- maintaining the high ground in innovation and coolness at the ends of the spectrum, at the same time having a much stronger focus on the bigger commercial opportunities, more towards the middle.

因此，我認為我們要打開索康尼的大門，思考更大的市場機會，保持創新和冷靜的製高點，同時更加關注更大的商業機會，更偏向中間。

Thanks. And then I have just one other question on housekeeping. The reduction of $20 million from the -- from the new licensing businesses, number one, does that mean that since you only took $4 million out of your revenue, that something went up, like something's better than what you thought it was before? And if so, what is it?

謝謝。然後我還有一個關於客房服務的問題。第一，新的授權業務減少了2000 萬美元，這是否意味著，由於您只從收入中扣除了400 萬美元，所以某些東西就上升了，就像某些東西比您之前想像的更好？如果是的話，那是什麼？

Sam, the guidance adjustment that we made to revenue was exactly the $20 million that we referenced, and it's solely related to the change in the business model. So, early May, we announced the change. So we have revenue under the wholesale model in the first four months of the year and then a shift in the -- in the last eight.

Sam，我們對收入所做的指導調整正是我們提到的 2000 萬美元，而且它僅與商業模式的變化有關。因此，五月初，我們宣布了這項變更。因此，我們在今年前四個月的批發模式下獲得了收入，然後在最後八個月發生了變化。

Okay, and then -- and then the other question is -- the other question is on interest expense. What do you foresee the interest expense being for the year, within your guidance?

好吧，然後 - 然後另一個問題是 - 另一個問題是利息支出。在您的指導下，您預計今年的利息支出是多少？

About $40 million.

大約4000萬美元。

As your debt comes down?

當你的債務減少？

Yes. We had net, net interest, I think, last year of about $63 million. So coming down to about $40 million in our in our guidance right now, driven by the ongoing progress we've made in reducing the debt.

是的。我想，去年我們的淨利息約為 6,300 萬美元。因此，在我們在減少債務方面取得的持續進展的推動下，我們目前的指導方針已降至約 4000 萬美元。

Got you. Okay. Thank you very much.

明白你了。好的。非常感謝。

Thanks Sam.

謝謝薩姆。

And congratulations, Mike.

恭喜你，麥克。

Thank you, Sam.

謝謝你，山姆。

Thank you. Jonathan Komp, Baird.

謝謝。喬納森康普，貝爾德。

Yes. Hi. Good morning. And Mike, good luck with the transition. Congratulations on your role change going forward.

是的。你好。早安.麥克，祝你過渡順利。恭喜您今後的角色轉變。

Thank you, John.

謝謝你，約翰。

Yes, thank you. And, Mike, if I could follow-up maybe just first with the gross margin drivers in the first quarter, I know you called out some mix tailwind. So could you maybe just talk a little bit more about the drivers and the gross margin expansion, how you see that going forward? And then really just the second half operating margin inflection that you talked to, if you could review some of the drivers there?

是的，謝謝。而且，麥克，如果我可以先跟進第一季的毛利率驅動因素，我知道您提出了一些混合推動因素。那麼您能否多談談驅動因素和毛利率擴張，您對未來有何看法？然後，實際上只是您談到的下半年營業利潤率的變化，您是否可以回顧一下那裡的一些驅動因素？

Sure. I think that the good news on the gross margin performance in Q1 which was slightly ahead of our guidance for the quarter was that we saw the benefit and the crystallization of a lot of the work that has been done over the last year to improve the supply chain performance, but also the cost structure. And whether that be the reduction in the transitory costs that we had to contend with for 2023 and slightly previous to that and obviously the product cost initiatives that we put into place in the middle of 2023.

當然。我認為第一季毛利率表現的好消息是，我們看到了去年為改善供應所做的大量工作的好處和結晶，這略高於我們對本季的指導產業鏈的績效，還包括成本結構。這是否是我們在 2023 年以及稍早之前必須應對的臨時成本的降低，以及我們在 2023 年中期實施的產品成本計劃。

So those all came to fruition as we expected. The benefit from just a healthier inventory, having worked through a lot of that end of life inventory in 2023 is painful as it was, set us up for a much cleaner business this year. And starting in Q1 we saw the benefit of that, and then I would say again as we mentioned on the revenue side, all the elements of our gross margin contribution in the quarter were quite solid.

所以這些都如我們所期望的實現了。更健康的庫存帶來的好處是，在 2023 年處理大量報廢庫存後，雖然是痛苦的，但我們今年的業務會更加乾淨。從第一季開始，我們就看到了這樣做的好處，然後我會再說一遍，正如我們在收入方面提到的那樣，我們本季度毛利率貢獻的所有要素都非常穩固。

Our full price margins held up to plan. We were able to drive a good amount of e-commerce improvement on our gross margins as well by being less promotional and driving a healthier business there. So all the things that we kind of laid out in our original guidance back in February, Jon, really kind of came together in the first quarter, and we expect that trend and those benefits to continue throughout the balance of the year.

我們的全價利潤符合計畫。透過減少促銷並推動電子商務業務的健康發展，我們能夠大幅提高電子商務的毛利率。因此，喬恩，我們在二月最初的指導中列出的所有內容確實在第一季集中在一起，我們預計這種趨勢和這些好處將在今年餘下的時間裡持續下去。

On the H2 operating margin expansion, obviously driven off of a couple of things that are really important to restate, one is just the sequential improvement in some of those profit improvement initiatives that we called out. Those are starting to be more prominent especially on the gross margin side in Q3 and Q4. So some of those savings that are benefiting our autumn winter assortment is going to start to show-up in Q3 and Q4.

關於下半年營業利潤率的擴張，顯然是由幾件需要重述的非常重要的事情推動的，其中之一就是我們呼籲的一些利潤改善舉措的連續改善。這些問題開始變得更加突出，尤其是在第三季和第四季的毛利率方面。因此，一些有利於我們秋冬產品的節省將在第三季和第四季開始顯現。

The cost reductions and restructuring benefits will be fully in place by the back half of the year. So you're seeing a stabilization on SG&A expense in the back half, while we obviously expect to see sequential improvement in revenue and growth in the fourth quarter. So being able to continue to drive the SG&A efficiency and leverage that to the bottom line as we grow the business.

成本削減和重組效益將在今年下半年完全到位。因此，您會看到後半段的銷售、管理及行政費用趨於穩定，而我們顯然預期第四季度的營收和成長將連續改善。因此，我們能夠繼續提高 SG&A 效率，並在我們業務發展的過程中利用這一點來實現利潤。

All in all really important part of our model as we kind of think about pivoting into 2025, but seeing some real proof points in the latter part of 2024 in terms of how we're a leaner better structured organization now. So I think it's really those drivers and the healthy mix of revenue that we, we see sequencing into the third and fourth quarter.

總而言之，這是我們模型中非常重要的一部分，因為我們正在考慮轉向 2025 年，但在 2024 年下半年，我們會看到一些真正的證據，證明我們現在是一個更精簡、結構更好的組織。所以我認為，我們認為第三季和第四季的排序確實是這些驅動因素和健康的收入組合。

Okay, great. And Chris, if I could just follow-up on Merrell, the outlook to improve and inflect to growth later in the year, could you just maybe talk about what you're seeing from the outdoor industry supporting that view and some of the Merrell specific drivers that you expect to support that inflection? Thanks again.

好的，太好了。克里斯，如果我能跟進梅雷爾的情況，以及今年晚些時候改善和影響增長的前景，您能否談談您從戶外行業看到的支持這一觀點的內容以及梅雷爾的一些具體內容您期望支持這種變化的驅動程式？再次感謝。

Yes. Yes. Sure. Thanks, Jon. Yes, for sure. In Merrell, I mean, the outdoor category has been under pressure for quite some time. And I’ll go back and say it’s up to the category leader to breathe newness and heat and innovation to that category. And that falls squarely on the shoulders of Merrell. We’re not counting on dramatic improvement in the outdoor category. So we’re very much focused on the things that we can do. Encouragingly in Merrell, we continue to gain market share, which is great. And there was a period of time here for a company where Merrell was losing share quarter after quarter after quarter. We stem that during COVID and we continue that today.

是的。是的。當然。謝謝，喬恩。是的，當然。我的意思是，在梅雷爾，戶外類別已經承受壓力相當長一段時間了。我回過頭來說，這取決於品類領導者為該品類帶來新鮮感、熱度和創新感。這完全落在了梅雷爾的肩上。我們並不期待戶外類別會有顯著改善。因此，我們非常關注我們能做的事情。令人鼓舞的是，在梅雷爾，我們繼續獲得市場份額，這很棒。有一段時間，梅雷爾公司的份額逐季下降。我們在新冠疫情期間阻止了這種情況，並且今天我們仍在繼續這樣做。

I’m encouraged by our efforts to become lighter and faster, more athletic, and that’s the Moab Speed 2. So early indications of that launch are very positive, extremely positive. And sort of how that has been embraced really globally and the sell throughs that we’re seeing and the replenishment that we’re seeing and the reaction to the fit and the style and the color. At the same time, the Moab 3 continues to be good. And as we sort of lap some of the very difficult market conditions with overinventoried and the rogue selling as those things abate, we’re encouraged that Merrell is in a good position to capitalize. We also, Merrell, have to extend beyond just core hike outdoor.

我們努力變得更輕、更快、更具運動性，這讓我深受鼓舞，這就是 Moab Speed 2。因此，該發射的早期跡象非常積極、非常積極。以及如何在全球範圍內真正接受這一點，以及我們所看到的銷售量、我們所看到的補貨以及對版型、款式和顏色的反應。與此同時，Moab 3 仍然表現出色。隨著庫存過剩和流氓銷售的減少，我們正在經歷一些非常困難的市場狀況，我們感到鼓舞的是，梅雷爾處於資本化的良好位置。梅雷爾，我們還必須超越核心的戶外健行。

For Merrell to truly become a great global brand, it really needs to extend beyond just that core hike business, which is why we work so hard in trail run. We’re gaining share in trail run, which is encouraging. And we’ve got some awesome styles that we didn’t talk about in prepared remarks, whether it’s the Agility Peak 5 or the new Morphlite, those are phenomenal products getting great reviews right now online. And we’re seeing good sell throughs. And we have to extend into lifestyle specifically for [her too]. And that’s why we’re encouraged by the wrapped collection, which we sort of previewed to all of you back at ICR in January. We’ve continued to see really strong sell throughs. Really, every time we deliver it, it sells out extraordinary quickly with very little marketing support.

邁樂要真正成為一個偉大的全球品牌，它確實需要超越核心健行業務，這就是我們在越野跑方面如此努力的原因。我們在越野跑方面的份額正在增加，這是令人鼓舞的。我們還有一些很棒的款式，但我們在準備好的評論中並未提及，無論是 Agility Peak 5 還是新的 Morphlite，這些都是非凡的產品，現在在網上獲得了好評。我們看到了良好的銷售情況。我們必須專門擴展到生活方式[她也是]。這就是為什麼我們對包裝好的系列感到鼓舞，我們在一月份的 ICR 上向大家預覽了該系列。我們繼續看到非常強勁的銷售量。確實，每次我們交付它時，它在幾乎沒有行銷支援的情況下都很快售罄。

So our ability to really embrace that franchise, begin to market that franchise and extend beyond just that core silhouette is going to be important. So the wrap is a great shoe. It’s visually disruptive. It’s got a great fit and it’s amazingly versatile, which is where I think the sweet spot is for Merrell when I think about just beyond core hike. So I’m encouraged by what the team is doing. We’ve got a new Chief Marketing Officer in place. We sat through product meetings with them and demand creation meetings with them, and I like the plans. The good things await campaign just dropped a lot of impressions, a lot of really positive reaction to that as well. So certainly Merrell’s not out of the woods and there is pressure in outdoor, but I do think we’re doing the right things to get that brand stabilized and get that brand growing again.

因此，我們真正擁抱該特許經營權、開始行銷該特許經營權並超越核心輪廓的能力將非常重要。所以包裹是一雙很棒的鞋子。它具有視覺破壞性。它非常合身，而且用途驚人，當我想到超越核心徒步旅行時，我認為這就是 Merrell 的最佳選擇。因此，我對團隊所做的事情感到鼓舞。我們任命了一位新的首席行銷長。我們與他們一起參加了產品會議和需求創建會議，我喜歡這些計劃。「好事等待」活動給人們留下了很多印象，也引起了很多正面的反應。因此，Merrell 當然還沒有擺脫困境，而且戶外活動也面臨著壓力，但我確實認為我們正在做正確的事情來穩定品牌並再次成長。

Great. Thanks again.

偉大的。再次感謝。

Thanks, Jon.

謝謝，喬恩。

Thanks, Jon.

謝謝，喬恩。

Thank you. Mauricio Serna, UBS.

謝謝。毛里西奧·塞爾納，瑞銀。

Hi. Yes, good morning and thanks for taking my questions. Maybe if you could provide more details about the DTC performance. I see in the release you mentioned the ongoing DTC revenue was down 6%. How does that compare to the previous quarter? And maybe on inventory, great progress that we’ve seen over the last couple of quarters. But it sounds like there’s still maybe like some work that you’re still very focused on that. So maybe could you talk about -- are there like maybe pocket of inventory that you still need to work through or what is exactly the state and composition of the inventory? Thank you so much.

你好。是的，早上好，感謝您回答我的問題。也許您可以提供有關 DTC 性能的更多詳細資訊。我在新聞稿中看到您提到持續的 DTC 收入下降了 6%。與上一季相比如何？也許在庫存方面，我們在過去幾個季度看到了巨大的進步。但聽起來你仍然非常專注於某些工作。那麼也許您可以談談 - 是否還有一些庫存需要處理，或者庫存的狀態和組成到底是什麼？太感謝了。

Thanks for the question. I’ll let Mike to take the last two. I’ll just talk about DTC inflection. And when we talk about proof points and we talk about what we’re trying to go do, certainly we look at the DTC business every hour as we get reads and how we’re performing day to day, week to week. I would say first and foremost, we’re trying to tell better stories online and trying to present our brands better and be less promotional.

謝謝你的提問。我會讓麥克來拿最後兩個。我只討論 DTC 變形。當我們談論證據點並談論我們想要做什麼時，當然，我們每小時都會查看 DTC 業務，因為我們得到的讀數以及我們每天、每週的表現如何。我想說，首先也是最重要的是，我們正在努力在網路上講述更好的故事，並努力更好地展示我們的品牌，並減少宣傳力度。

And we have seen us be less promotional (inaudible) which is important for the health of our brands and how our brands are perceived and consumers perceptions of our brands and marketplace perceptions of our brand. So we’ve worked to be less promotional, which is paying off in the margin piece. And then from an improvement standpoint, we were down mid-teens in the fourth quarter and down, I think, around 6% in the first quarter. And we’ve actually sort of inflected the growth turn to growth in March, and then that has continued into April. So we’re encouraged by that.

我們發現我們的促銷活動較少（聽不清楚），這對於我們品牌的健康發展、我們品牌的認知度、消費者對我們品牌的認知以及市場對我們品牌的認知非常重要。因此，我們努力減少促銷力度，這在利潤方面得到了回報。然後從改進的角度來看，我們在第四季度下降了十幾歲左右，我認為第一季下降了 6% 左右。事實上，我們已經在 3 月將成長轉向成長，然後這種情況一直持續到 4 月。所以我們對此感到鼓舞。

Obviously, newness drives the business and then really compelling engagement with our consumers. And when we drop new products in Saucony, it’s the Endorphin 4, the Triumph 22, Merrell, it’s -- either it’s work around the Moab Speed 2 or the Agility Peak 5, or the wrap collection, or even some of the one TRL stuff continues to have momentum.

顯然，新穎性推動了業務發展，進而真正吸引了我們的消費者。當我們在 Saucony 推出新產品時，它是 Endorphin 4、Triumph 22、Merrell，它要么是圍繞 Moab Speed 2 或 Agility Peak 5 打造的，要么是包裹系列，甚至一些 TRL 的東西繼續保持勢頭。

And then Sweaty Betty, which we haven’t talked about yet today, really good continued innovation out of that Sweaty Betty team and really telling amazing stories with the Wear the Damn Shorts campaign, which I personally love. And it’s just so on brand for who Sweaty Betty is and the consumers that they talk to. So I would say we’re encouraged by the progress we’ve made in DTC.

然後是汗水貝蒂（Sweaty Betty），我們今天還沒有討論過，汗水貝蒂團隊的持續創新非常出色，並且透過我個人很喜歡的「Wear the Damn Shorts」活動講述了令人驚嘆的故事。這正是 Sweaty Betty 的身份以及與之交談的消費者的品牌形象。因此，我想說，我們對 DTC 的進展感到鼓舞。

We’re encouraged by how we have sort of stemmed those -- stem that contraction, and now we’re beginning to see growth. I’m also proud of how we’ve done it. Again, less promotional, telling better stories, but really dropping new and innovative products at a consistent drumbeat, which is what we know works in the marketplace. So again, not declaring victory by any stretch of the imagination. But I do think we are seeing early proof points that our strategy and execution are gaining traction.

我們對遏制這些問題的方式感到鼓舞——遏制收縮，現在我們開始看到成長。我也為我們的做法感到自豪。同樣，減少促銷，講述更好的故事，但真正以一致的鼓點推出新的和創新的產品，這就是我們所知道的市場運作方式。再說一遍，不要以任何想像的方式宣布勝利。但我確實認為我們看到了早期的證據，表明我們的策略和執行正在獲得關注。

On the inventory --

在庫存上--

Yes.

是的。

Yes. Go ahead. Sorry.

是的。前進。對不起。

Mauricio, on the inventory question, I would say just continued progress. We ended the quarter ahead of where we had hoped and kind of planned for combination of really strong selling on high quality product and just a better kind of more rigorous planning and management process there. And as we said in our guidance, expect to drive inventories down even further this year. Another $75 million year-over-year as a result of just being able to focus on some specific core areas and be rational about when we’re going to sell that off and the phasing of, but see line of sight to being able to accomplish that, obviously. And updated our guidance to actually improve on that number a little bit here since February.

毛里西奧，關於庫存問題，我想說的是持續的進展。我們提前結束了本季的預期，並計劃將高品質產品的強勁銷售與更好、更嚴格的規劃和管理流程相結合。正如我們在指導中所說，預計今年庫存將進一步下降。年比又增加了 7500 萬美元，因為我們能夠專注於某些特定的核心領域，並理性地考慮何時出售該領域以及分階段進行，但要看到能夠顯然，要實現這一點。自二月以來，我們更新了我們的指導意見，以實際改善這個數字。

So we see the quality of the inventory improving across the board. It’s not where we need it to be, which is why we’re calling out the $75 million of opportunity. But overall, the progress being made so far is ahead of schedule.

因此，我們看到庫存品質全面改善。這不是我們需要的地方，這就是我們呼籲提供 7500 萬美元機會的原因。但總體而言，迄今為止所取得的進展超出了計劃。

Understood. And then just a quick follow-up on SG&A. I think I just want to make sure I understood. I think you mentioned SG&A dollars second half should be like fairly similar to first half, is that right? And from a -- like you said -- should that be more like weighted to Q3 or Q4 if I think about that?

明白了。然後是對 SG&A 的快速跟進。我想我只是想確保我理解了。我認為您提到下半年的SG&A 美元應該與上半年相當相似，對嗎？就像你說的那樣，如果我考慮一下的話，這應該更像是第三季還是第四季的加權？

Well, we’re not giving quarterly guidance on the back half yet, but just thought it would be helpful to kind of give some perspective on both the margin expectations for the back half of the year. Pretty much in line with what we’ve experienced so far in the Q1, plus the guidance we gave for Q2 and then similar sort of directional guidance on the SG&A for the full half of the year. So again, we did call out, Mauricio, that we expect sequential improvement in revenue every quarter with growth in the fourth quarter. So that might help your model a little bit.

好吧，我們還沒有給出下半年的季度指導，但只是認為對下半年的利潤率預期給出一些看法會有所幫助。與我們迄今為止在第一季所經歷的情況幾乎一致，加上我們為第二季度提供的指導，以及對全年銷售、管理和行政費用的類似定向指導。因此，毛里西奧，我們再次指出，我們預計每季的營收都會隨著第四季的成長而連續改善。所以這可能對你的模型有一點幫助。

Thank you. Super helpful.

謝謝。超有幫助。

Thanks, Mauricio.

謝謝，毛里西奧。

Thank you. Dana Telsey, Telsey Group.

謝謝。達納‧特爾西，特爾西集團。

Good morning. Good morning, Chris and Mike. And Mike, best of luck in your next. Wanted to touch on, first of all, as you think about pricing and promotions, how are you thinking about the environment today? How has it changed and what are you expecting going forward on the wholesale order book and channels, the distribution there? Seeing anything different from different types of accounts by brand? And then lastly, Chris, with the transformation work that’s been underway, where are you on the progress organizationally in getting it to where you want it to be, whether like in headquarters or how you’re thinking about it with efficiencies? Thank you.

早安.早上好，克里斯和麥克。麥克，祝你接下來好運。首先，當您考慮定價和促銷時，您對當今的環境有何看法？它發生了怎樣的變化？看到不同品牌的不同類型帳號有什麼不同嗎？最後，克里斯，隨著正在進行的轉型工作，您在組織上取得了哪些進展，以實現您想要的目標，無論是在總部還是您如何有效地思考它？謝謝。

Yes, good question. All good questions. Dana, thank you very much. I’ll hit the last one first, and then we’ll come back to the earlier ones. Wolverine has gone through a lot in the last nine months. Obviously, we had a CEO transition last August, and we really focused very quickly to stabilize the business and restructure the business, which we needed to go do. We have completed a lot of those efforts, but a lot of those efforts are still, we’re still working our way through. I would say right now we’re in the middle of moving our distribution center, closing distribution center in Louisville and moving that product to our California distribution center. That takes a lot of work. We’re working on moving our (inaudible) teammates, the Saucony team to Michigan, and having that team sort of reside here.

是的，好問題。都是好問題。達納，非常感謝你。我將先討論最後一個，然後我們再回到前面的幾個。金鋼狼在過去的九個月裡經歷了很多。顯然，我們去年八月進行了執行長換屆，我們很快就集中精力穩定業務並重組業務，這是我們需要做的。我們已經完成了其中的許多努力，但其中許多努力仍然存在，我們仍在努力完成。我想說，現在我們正在搬遷我們的配送中心，關閉路易斯維爾的配送中心，並將產品轉移到我們的加州配送中心。這需要做很多工作。我們正在努力將我們的（聽不清楚）隊友，即索康尼團隊搬到密西根，並讓球隊住在這裡。

And we’re still looking for some key talent. We’re still looking for marketing leadership in Saucony. We’re looking for some key brand talent or product talent in some of our brands as well. So I’m very pleased with the progress that we’ve made.

我們仍在尋找一些關鍵人才。我們仍在尋找索康尼的營銷領導者。我們也在我們的一些品牌中尋找關鍵品牌人才或產品人才。因此，我對我們所取得的進展感到非常滿意。

I think we’ve taken the right and necessary steps at the same time there is work to go do, but I think we’re approaching it with great pace and urgency and also attacking the most important things first. So that’s where we are. So we’re not completely done restructuring. We’re not completely done. The dust hasn’t all settled yet, but the team has done a phenomenal job sort of reacting to the call to action and then importantly, posting the results and driving the business each and every day.

我認為我們已經採取了正確和必要的步驟，同時還有工作要做，但我認為我們正在以極大的速度和緊迫感來實現這一目標，並首先處理最重要的事情。這就是我們現在的處境。所以我們還沒有完全完成重組。我們還沒有完全完成。塵埃尚未完全塵埃落定，但該團隊已經完成了一項出色的工作，對行動號召做出了反應，然後重要的是，每天發布結果並推動業務發展。

The marketplace inventories, I think the market inventories continue to get better, which is good, and sort of become a little less promotional, especially for us on our dot com business, which is encouraging. There are still pockets out there that are a little bit heavy and it also varies a little bit by channel, by channel too. So certainly improved, albeit not perfect yet, which is one of the things that we continue to watch and monitor. And again, wholesalers, our partners, just are behaving differently. How they think about future orders, how they think about replenishment orders is just different from the historical norms of the business.

市場庫存，我認為市場庫存繼續變得更好，這很好，而且促銷活動​​有點少，特別是對於我們的網絡業務而言，這是令人鼓舞的。仍然有一些口袋有點重，而且各個渠道的情況也略有不同。所以肯定有所改進，儘管還不完美，這是我們繼續觀察和監控的事情之一。再說一次，批發商，我們的夥伴，只是表現不同。他們如何看待未來的訂單、如何看待補貨訂單，與企業的歷史規範不同。

And we, along with probably a lot of brands similar to us, are learning to react and adapt to that. Encouragingly though, is that we talked about the uptick in replenishment orders is a positive sign in the business. We’re seeing some of the nefarious rogue selling activity that is coming down sort of week by week, which we’re encouraged by. And then, as I already talked about, a little bit of acceleration in our DTC business. But I think we’re still very cautious. We’re still managing the business very tightly on a day-to-day basis.

我們，以及許多與我們類似的品牌，正在學習對此做出反應和適應。但令人鼓舞的是，我們談到補貨訂單的增加是這項業務的正面跡象。我們看到一些邪惡的流氓銷售活動每週都在減少，對此我們感到鼓舞。然後，正如我已經談到的，我們的 DTC 業務略有加速。但我認為我們仍然非常謹慎。我們仍然非常嚴格地管理日常業務。

And then where we do see proof points, we are chasing that business responsibly as quickly as we can. So I think by and large we’re pleased with the progress we’ve made. At the same time, we know that we can do better and everyone should expect us to do better. And that’s what everyone here is focused on.

然後，當我們確實看到證據時，我們會盡快負責任地追逐該業務。因此，我認為總的來說，我們對所取得的進展感到滿意。同時，我們知道我們可以做得更好，每個人都應該期待我們做得更好。這就是這裡每個人都關注的焦點。

Got it. And then pricing and promotions. What are you seeing there and any shifts in third quarter and fourth quarter as you return to growth?

知道了。然後是定價和促銷。隨著您恢復成長，您認為第三季和第四季會發生什麼變化？

Well, I can say that the proof point so far this year on pricing and promotions, both in our direct-to-consumer channels and through our wholesale partnerships has been quite positive. Overall in the accounts or in the channels where we do get the information, we’re seeing inventories coming down nearly 25% year-over-year, not to optimal levels yet, obviously at retail, but that’s an encouraging trend and sign. But at the same time, average selling price is increasing pretty dramatically for our big brands in those channels.

嗯，我可以說，今年迄今為止，無論是在我們的直接面向消費者的管道還是透過我們的批發合作夥伴關係，定價和促銷方面的證據都是相當積極的。總體而言，在我們獲得資訊的帳戶或管道中，我們看到庫存同比下降了近 25%，尚未達到最佳水平，顯然是在零售方面，但這是一個令人鼓舞的趨勢並簽署。但與此同時，我們的大品牌在這些管道中的平均售價正在大幅上漲。

So that’s a really important proof point. We talked a little bit about the margin expansion in our e-commerce business and how that’s been a very important focus for the teams and we’re seeing that benefit, I think a combination of a bit more disciplined, but most importantly just new product that’s actually resonating with the consumers right now and driving more full price business. So I think those are the two most important proof points right now, Dana, as we think about, more confidence into the back half of the year, we’re not giving guidance on Q3 or Q4 phasing or trends, but just know that some of the early positive wins we’re seeing in the e-commerce side of the business are giving us some confidence points for sure.

所以這是一個非常重要的證明點。我們討論了電子商務業務的利潤率擴張，以及這如何成為團隊的一個非常重要的關注點，我們看到了這種好處，我認為這是更嚴格的結合，但大多數重要的是，新產品能夠真正引起消費者的共鳴，並推動更多的全價業務。因此，我認為這是目前最重要的兩個證據點，達納，正如我們所想，對今年下半年更有信心，我們不會就第三季度或第四季度的階段或趨勢提供指導，但只知道我們在電子商務方面看到的一些早期積極成果肯定給了我們一些信心。

Thank you.

謝謝。

Thanks, Dana.

謝謝，達納。

Thank you. Ashley Owens, KeyBanc Capital Markets.

謝謝。Ashley Owens，KeyBanc 資本市場。

Hi. Thanks for taking the question. Just first, can you talk about your decision to roll off the Merrell and Saucony kids businesses into license and then any plans you can share that you have to reallocate some of those resources you were previously using to support those?

你好。感謝您提出問題。首先，您能否談談您決定將 Merrell 和 Saucony 兒童業務轉入許可，然後您可以分享您必須重新分配之前用於支持這些業務的一些資源的計劃嗎？

Yes, good question. Thanks, Ashley. We appreciate that. Certainly, important decisions that we’re making as an organization to how we think about Wolverine World Wide go forward. We created a global licensing group in the latter part of last year and really are thoughtful about that business and what it can mean. We’ve got a great seasoned leader running that business. She brings just a great approach sort of daily to both our brands and our partners and how we can profitably grow that business.

是的，好問題。謝謝，阿什利。我們對此表示讚賞。當然，我們作為一個組織正在做出的重要決定將影響我們如何看待《金鋼狼世界》的發展。我們在去年下半年創建了一個全球許可小組，並且對這項業務及其意義進行了深思熟慮。我們有一位經驗豐富的領導者來管理這項業務。她每天都為我們的品牌和合作夥伴帶來一種很好的方法，以及我們如何能夠獲利地發展這項業務。

So we’ve created the center of excellence. We’ve got the right leader running it. And then we also look back on the global potential of our brands and where we know we can be great and where I think we probably know that we can use some help. I still believe in the power of our global head-to-toe opportunities specifically for Merrell and Saucony and what those brands can be. And as it relates to Merrell, we’ve attempted apparel and accessories historically, and we just haven’t been great at it. And I think we found a great partner in that. I literally just met with them last week. I’ll meet with them in a couple weeks. Just a really phenomenal partner that has a deep fondness for the Merrell brand.

因此，我們創建了卓越中心。我們有合適的領導者來管理它。然後我們也回顧了我們品牌的全球潛力，以及我們知道我們可以在哪些方面做得很好，以及我認為我們可能知道我們可以在哪些方面需要幫助。我仍然相信我們專門為 Merrell 和 Saucony 提供的全球從頭到腳機會的力量以及這些品牌的潛力。就 Merrell 而言，我們歷史上曾經嘗試過服裝和配件，但我們並不擅長。我認為我們在這方面找到了一個很好的合作夥伴。我上週才剛見過他們。幾週後我將與他們見面。這是一位非常出色的合作夥伴，對 Merrell 品牌有著深厚的感情。

They’ve already built a team out around it and are very excited about what they see as the potential for Merrell apparel and accessories to allow us to be a true global head-to-toe business. And I think we can’t miss the fact that Merrell outside of the US, we’ve got 46 stores in the US, we’ve got a direct-to-consumer business. We have a wholesale business. But outside of the US, we have a lot of direct-to-consumer operations. And I think those stores, being able to arm those stores with apparel and accessories and socks and packs and bags, along with the amazing footwear that we design, really creates a really phenomenal opportunity for us and really helps us tell a better story with the consumer.

他們已經圍繞它建立了一個團隊，並且對 Merrell 服裝和配件的潛力感到非常興奮，因為他們認為 Merrell 服裝和配件使我們能夠成為真正的從頭到腳的全球企業。我認為我們不能忽視 Merrell 在美國以外的地區，我們在美國擁有 46 家商店，我們擁有直接面向消費者的業務。我們有批發業務。但在美國以外，我們有許多直接面向消費者的業務。我認為這些商店能夠為這些商店提供服裝、配件、襪子、背包和包袋，以及我們設計的令人驚嘆的鞋類，確實為我們創造了一個非常驚人的機會，並確實幫助我們講述了更好的故事消費者。

So I’m bullish on that. And then on the kids front too, we’ve had a kids group, a kids group that was very good. At the same time, I think a licensing model with a longtime partner like who we chose was really made the best sense for us today as we’re thinking about the business. So I think we picked two great partners for both apparel accessories for Merrell and then Merrell and Saucony kids, and we have them underneath a great leader at Wolverine World Wide. So I think we’re really working to prioritize the business, eyes wide open about what we know we can be great at. At the same time, looking at other opportunities for our brands with best-in-class partners who can help us continue to grow without having us to do it ourselves.

所以我對此持樂觀態度。在兒童方面，我們也有一個兒童小組，一個非常好的兒童小組。同時，我認為，當我們考慮業務時，與我們選擇的長期合作夥伴建立授權模式對我們來說確實是最有意義的。因此，我認為我們為 Merrell、Merrell 和 Saucony 兒童服裝配件選擇了兩個出色的合作夥伴，我們讓他們在 Wolverine World Wide 的偉大領導者的領導下。因此，我認為我們確實在努力確定業務的優先順序，並對我們知道自己可以擅長的領域保持開放的態度。同時，與一流的合作夥伴一起為我們的品牌尋找其他機會，這些合作夥伴可以幫助我們繼續發展，而無需我們自己做。

As a talk to redeploy resources, we’ve already done that. We’ve redeployed some resources into other parts of the business as well. And it allows us to really have a sharper focus on what we know that we can be great at and what we know we need to be great at. So an important move and just another step in our evolution.

作為重新部署資源的討論，我們已經這麼做了。我們還將一些資源重新部署到業務的其他部分。它使我們能夠真正更加專注於我們知道我們可以擅長的事情以及我們知道我們需要擅長的事情。這是一個重要的舉措，也是我們發展的另一步。

Okay, great. Thanks. And then quickly one, any call outs you could provide around which brands, the products are kind of helping with that replenish rate improvement you’re seeing and then additionally, the product cadence as we get to the back half of the year and just how it compares to some of the innovation we’re seeing now? As resources free up, inventory gets cleaner, all the transformation efforts underway as well. Should we seeing a little bit of acceleration in terms of launches or is the inflection of 4Q coming from existing products you’ve released ramping in momentum?

好的，太好了。謝謝。然後很快，你可以圍繞哪些品牌、產品提供任何呼籲，這些都有助於你看到的補充率提高，此外，當我們進入下半年時，產品節奏也會有所幫助，只是它與我們現在看到的一些創新相比如何？隨著資源的釋放，庫存變得更加乾淨，所有的轉型工作也正在進行中。我們是否應該看到發布方面出現一點加速，或者第四季度的變化是否來自您已發布的現有產品的勢頭強勁？

Yes. Great. Great question or questions. There’s a lot embedded there. I’ll try to answer it. I think certainly replenishment across the board we have seen an improvement in. Some parts it’s better than others. But in our weekly meetings with the brand leadership teams and sales teams, we certainly have seen a nice uptick in weekly replenishment orders. Probably stronger in some brands and frankly strong in some brands where now we’re going to go chase inventory.

是的。偉大的。很好的問題。其中蘊藏著很多內容。我會盡力回答這個問題。我認為我們在全面補貨方面確實取得了進展。有些部分比其他部分更好。但在我們與品牌領導團隊和銷售團隊的每週會議中，我們確實看到每週補貨訂單的大幅成長。某些品牌可能會更強，坦白說，某些品牌現在我們將去追逐庫存。

And I’m thinking about Saucony specifically right now, some of the momentum that Saucony has, we’re chasing product because we have managed inventory very closely to help really work and reposition and reset that brand. We’re also seeing it in brand like Merrell, and we’re chasing Moab Speed 2s now and talking about how we can prioritize orders and feed the regions and channels that are driving that growth.

我現在特別想到索康尼，索康尼擁有的一些動力，我們正在追逐產品，因為我們非常密切地管理庫存，以幫助真正發揮作用，重新定位和重置該品牌。我們也在像 Merrell 這樣的品牌中看到了這一點，我們現在正在追逐 Moab Speed 2，並討論如何確定訂單的優先順序並為推動成長的地區和管道提供服務。

And then even some places in the work group which we haven’t talked about today, where product is on trend or new innovation, we’re having to chase that too. So it goes without saying, and you all know as well as I do that newness -- consumers crave newness and innovation. And I think when we can bring that in a meaningful way and tell a good story about it, that product checks. And that’s why I’m so convinced about our global brand building model and encouraged by the progress we made around the product pipeline.

然後，即使是工作小組中我們今天沒有討論過的一些地方，即產品處於趨勢或新的創新，我們也必須追逐它們。因此，不言而喻，你們和我一樣都知道新鮮感——消費者渴望新鮮感和創新。我認為，當我們能夠以有意義的方式帶來這一點並講述一個關於它的好故事時，該產品就會受到檢驗。這就是為什麼我對我們的全球品牌建立模式如此堅信，並對我們在產品線方面取得的進展感到鼓舞。

While we’ve had some great introductions, there are still more coming this year. I’m excited about the Reforce, which is just dropping in the boot group, certainly in Saucony. The Hurricane 24, which will drop this summer. We’re encouraged by. That is a disruptive shoe that has people talking, continuing to chase the Endorphin, the Triumph. Those are all very positive. And then there’s some really cool new light hikers coming out from Merrell that’ll drop the latter part of this year into next year. That are probably some of the most disruptive shoes that Merrell has built in a very long period of time.

雖然我們已經推出了一些精彩的產品，但今年還會推出更多產品。我對 Reforce 感到很興奮，它只是加入靴子組，當然在索康尼。颶風 24 將於今年夏天降落。我們深受鼓舞。這是一款顛覆性的鞋子，讓人議論紛紛，繼續追逐內啡肽，凱旋。這些都是非常正面的。然後還有一些來自 Merrell 的非常酷的新型輕型徒步旅行者，它們會將今年下半年推遲到明年。這可能是 Merrell 在很長一段時間內打造的最具顛覆性的鞋子之一。

Thinking about the evolution of the trail, light and fast, and things that are visually disruptive at the same time perform. So I think we’ve worked hard to accelerate the innovation in our product pipeline. I think the teams have responded early proof points of the new innovation working, and even some of the sell in that we’re doing with accounts have been very positive. So I’m encouraged by the progress that we’ve made, every new drop we get excited about.

思考路線的演變，輕便、快速，以及同時表現出視覺破壞性的東西。因此，我認為我們一直在努力加速產品線的創新。我認為團隊已經對新創新工作的早期證據做出了回應，甚至我們正在透過客戶進行的一些銷售也非常積極。因此，我對我們所取得的進步感到鼓舞，對每一個新的進步都感到興奮。

Really appreciate the color there. And best of luck to you, Mike, and your future endeavors.

真的很欣賞那裡的顏色。麥克，祝你和你未來的事業好運。

Thank you, Ashley.

謝謝你，阿什利。

Thanks, Ashley.

謝謝，阿什利。

Thank you. Ladies and gentlemen, we will now end the question-and-answer session. The conference has now concluded. Thank you for attending today’s presentation. You may now --

謝謝。女士們、先生們，我們現在將結束問答環節。會議現已結束。感謝您參加今天的示範。你現在可以——