AKA Brands Holding Corp (AKA) 2022 Q4 法說會逐字稿

Greetings. Welcome to a.k.a. Brands Holding Corp.'s Fourth Quarter and Full Year 2022 Conference Call. (Operator Instructions)

問候。歡迎來到 a.k.a. Brands Holding Corp. 的 2022 年第四季度和全年電話會議。 （操作員說明）

At this time, I'll now turn the conference over to Emily Schwartz with Head of Communications. Emily, you may now begin.

現在，我將把會議轉交給傳播主管 Emily Schwartz。艾米麗，你現在可以開始了。

Good afternoon. Thank you for joining a.k.a. Brands fourth quarter and full year 2022 conference call to discuss the results released this afternoon, which can be found on our website at ir.aka-brands.com. With me on the call today are Ciaran Long, Interim Chief Executive Officer and Chief Financial Officer.

下午好。感謝您加入 a.k.a.Brands 第四季度和 2022 年全年電話會議，討論今天下午發布的結果，這些結果可以在我們的網站 ir.aka-brands.com 上找到。今天與我通話的是臨時首席執行官兼首席財務官 Ciaran Long。

Before we get started, I'd like to remind you of the company's safe harbor language. Management may make forward-looking statements, which refer to expectations, projections and other characterizations of future events, including guidance and underlying assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed. For a further discussion of risks related to our business, please see our filings with the SEC. Please note, we assume no obligation to update any such forward-looking statements.

在我們開始之前，我想提醒您公司的安全港語言。管理層可能會做出前瞻性陳述，這些陳述指的是未來事件的預期、預測和其他特徵，包括指導和基本假設。前瞻性陳述涉及風險和不確定性，可能導致實際結果與表述的結果存在重大差異。有關與我們業務相關的風險的進一步討論，請參閱我們向美國證券交易委員會提交的文件。請注意，我們不承擔更新任何此類前瞻性陳述的義務。

This call will contain non-GAAP financial measures such as adjusted EBITDA and adjusted EBITDA margin. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. The call will also contain certain numbers presented on a pro forma basis, which includes the impact of Culture Kings as if we had owned it for all periods and comparable periods described.

此電話會議將包含非 GAAP 財務指標，例如調整後的 EBITDA 和調整後的 EBITDA 利潤率。這些非 GAAP 措施與最具可比性的 GAAP 措施的對賬包含在提供給 SEC 的收益發布中，並可在我們的網站上查閱。電話會議還將包含某些以備考為基礎的數字，其中包括 Culture Kings 的影響，就好像我們在所有時期和描述的可比時期都擁有它一樣。

With that, I'll turn the call over to Ciaran.

有了這個，我會把電話轉給 Ciaran。

Thanks, Emily. Good afternoon, everyone, and thanks for joining our call today. As you saw in today's press release, unfortunately, Jill is dealing with some unforeseen medical issues and it's taking time to work through that. I will be taking on Jill's responsibilities as acting CEO on an interim basis, but Jill will continue to stay as involved in the business as her health allows for and she will remain on the board.

謝謝，艾米麗。大家下午好，感謝您今天加入我們的電話會議。正如您在今天的新聞稿中看到的那樣，不幸的是，吉爾正在處理一些無法預料的醫療問題，需要時間來解決。我將臨時承擔吉爾作為代理首席執行官的職責，但吉爾將在她的健康允許的情況下繼續參與業務，她將繼續留在董事會。

She will not be on today's call, but she prepared remarks that I will read on her behalf, and then I will continue with my commentary on the financials before taking your questions. The following are her remarks.

她不會參加今天的電話會議，但她準備了我將代表她宣讀的評論，然後我將在回答你的問題之前繼續我對財務狀況的評論。以下是她的發言。

Before we discuss our fourth quarter and full year results, I want to commend our teams for their unwavering dedication this year and for stepping up to every challenge that came our way. Despite the external pressures, we are steadfast in our vision to be the leaders in next-generation fashion for the next-generation consumer. And we remain laser-focused on growing our brands profitably. Our brands, teams and flexible business models give me confidence that we have tremendous runway ahead and will deliver on our long-term goals.

在我們討論第四季度和全年業績之前，我想讚揚我們的團隊今年堅定不移的奉獻精神，以及他們迎接我們遇到的每一個挑戰。儘管存在外部壓力，但我們堅定不移地致力於成為面向下一代消費者的下一代時尚領域的領導者。我們仍然專注於以盈利方式發展我們的品牌。我們的品牌、團隊和靈活的商業模式讓我相信，我們擁有廣闊的發展前景，並將實現我們的長期目標。

For the full year, net sales grew 9% to $612 million were flat on a pro forma basis, which, as a reminder, as soon as we own Culture Kings for all periods in 2021. On a constant currency basis, net sales increased 13%. The U.S., which is now our largest market, leather growth at 16% and Australia grew 4%. Importantly, despite the challenges in the macro environment, we continue to generate profit and delivered $32 million of adjusted EBITDA for the year.

全年，淨銷售額增長 9% 至 6.12 億美元，與備考基礎持平，提醒一下，一旦我們在 2021 年的所有時期擁有 Culture Kings。按固定匯率計算，淨銷售額增長 13 %。美國現在是我們最大的市場，皮革增長了 16%，澳大利亞增長了 4%。重要的是，儘管宏觀環境面臨挑戰，我們仍繼續創造利潤，並在本年度實現了 3200 萬美元的調整後 EBITDA。

Our brands continue to gain market share and grow awareness around the world. In 2022, we grew our customer base to $3.8 million, and we expect that number to grow this year as we expand our brands, particularly Culture Kings in the U.S. And we grew our social media followers by nearly 1.5 million this year across the portfolio, further improving the demand and relevancy of our brands.

我們的品牌在全球範圍內繼續獲得市場份額並提高知名度。 2022 年，我們的客戶群增加到 380 萬美元，我們預計今年這個數字會隨著我們品牌的擴張而增長，尤其是美國的 Culture Kings。今年我們在整個產品組合中增加了近 150 萬社交媒體粉絲，進一步提高我們品牌的需求和相關性。

Turning now to the fourth quarter. The fourth quarter was softer than we anticipated as we faced a highly promotional backdrop and made strategic decisions on marketing and inventory newness that impacted both our top-line and bottom-line. Sales decreased 18% year-over-year to $149 million or were down 13% on a constant currency basis. And we delivered adjusted EBITDA of $6 million. The U.S. declined by 11% on top of a very strong 74% growth in the fourth quarter last year on a pro forma basis, and Australia declined 12% on a constant currency basis.

現在轉到第四季度。第四季度比我們預期的要疲軟，因為我們面臨著高度促銷的背景，並且在影響我們的收入和利潤的營銷和庫存新鮮度方面做出了戰略決策。銷售額同比下降 18% 至 1.49 億美元，按固定匯率計算下降 13%。我們交付了 600 萬美元的調整後 EBITDA。在去年第四季度備考基礎上強勁增長 74% 的基礎上，美國下降了 11%，而澳大利亞在固定匯率基礎上下降了 12%。

I want to give you some color on the factors that impacted our business in the fourth quarter. A key anchor of our strategy is balancing growth and profitability across our brands. We're proud to run a profitable and durable business, and we're committed to building great brands for the long term. We entered the fourth quarter knowing it was going to be promotional due to the inventory (inaudible) across the fashion sector. But as we went through the holiday season, particularly in the second half of the quarter, the promotions and discounts were abundant and much more intense than we anticipated.

我想給你一些關於第四季度影響我們業務的因素的顏色。我們戰略的一個關鍵支柱是平衡我們品牌的增長和盈利能力。我們為經營一家盈利且持久的企業而感到自豪，我們致力於長期打造偉大的品牌。我們進入第四季度時就知道，由於整個時尚行業的庫存（聽不清），這將是促銷活動。但隨著我們度過假期，尤其是在本季度的下半段，促銷和折扣非常豐富，而且比我們預期的要激烈得多。

As part of our efforts to balance growth and profitability, we made the strategic decision not to compete in our peers promotional levels, and we held our discounts and promotions relatively flat to last year. Furthermore, because of the heightened promotional environment, we also saw that the returns on marketing investments were lower than previous levels and incremental marketing spend was hitting diminishing returns and was not profitable. In an effort to maximize profitability, we held our marketing spend at the same 10% of net sales on a rate basis, which also impacted our top-line.

作為我們平衡增長和盈利能力努力的一部分，我們做出了不在同行促銷水平上競爭的戰略決策，並且我們的折扣和促銷活動與去年持平。此外，由於促銷環境的加強，我們還看到營銷投資的回報低於以前的水平，增量營銷支出正在減少回報，無法盈利。為了最大限度地提高盈利能力，我們將營銷支出按比例保持在淨銷售額的 10%，這也影響了我們的收入。

And lastly, as we aggressively tightened our inventory in the back half of the year, we entered the peak holiday selling period with fewer new sales in our women's brands, which impacted both the top and bottom lines. While our marketing decisions and lower levels of newness had short-term impacts in the quarter, we believe that they protect the integrity and durability of our brands and business model for the long term.

最後，由於我們在下半年積極收緊庫存，我們進入了假日銷售高峰期，女裝品牌的新銷量減少，這對收入和利潤都產生了影響。雖然我們的營銷決策和較低的新鮮度在本季度產生了短期影響，但我們相信它們會長期保護我們品牌和商業模式的完整性和持久性。

I'm pleased to report that we have already taken steps to course correct. Given that we have flexibility in our operating model, as we've seen changes in the promotional environment, we've adjusted our marketing spend. And the fashion newness is back at our brands as we head into spring. I'm confident that with our levels of newness normalizing, we will also register a meaningful sequential improvement in our gross margin.

我很高興地報告說，我們已經採取措施糾正路線。鑑於我們的運營模式具有靈活性，正如我們看到促銷環境的變化，我們調整了營銷支出。隨著我們進入春天，時尚新鮮感又回到了我們的品牌中。我相信，隨著我們的新品水平正常化，我們的毛利率也將出現有意義的連續改善。

Despite the challenging macro environment, I'm proud of the progress we made during the quarter, strengthening the foundation of the business. The Culture Kings flagship store that opened in November is exceeding our expectations, and we're pleased with the halo effect the store is having in online sales. We also continue to make sequential improvements on our inventory, which is down $17 million over the last 6 months, and we had another quarter of positive cash flow in the fourth quarter. Subsequent to quarter end, we also paid down $6 million of our revolver. While we can't control the macro environment, we can control how we drive the business forward. To that extent, I'm excited to talk about the new initiatives across our portfolio that will drive growth, but more importantly, accelerate brand awareness for the long term.

儘管宏觀環境充滿挑戰，但我為本季度取得的進展感到自豪，加強了業務基礎。 11月開張的Culture Kings旗艦店超出了我們的預期，對線上銷售的光環效應我們很滿意。我們還繼續對我們的庫存進行連續改進，庫存在過去 6 個月減少了 1700 萬美元，我們在第四季度又有一個季度的正現金流。季度末後，我們還支付了 600 萬美元的左輪手槍。雖然我們無法控制宏觀環境，但我們可以控制推動業務發展的方式。就此而言，我很高興談論我們產品組合中的新舉措，這些舉措將推動增長，但更重要的是，從長遠來看，會加速品牌知名度。

As we look to the future of fashion, we believe that core to building durable next-generation brands is showing up everywhere our customers are, whether that's direct-to-consumer, through wholesale partners, digital, mobile or in stores. Our brands have already mastered building authentic relationships directly with customers and providing great experiences, and we believe they would excel in other channels, too. To that end, in 2023, we're piloting select wholesale partnerships, and we're also testing a Princess Polly store in Southern California in the back half of the year. We have an exciting year ahead filled with new tests and initiatives while simultaneously strengthening our balance sheet to fuel profitable growth for the long term.

當我們展望時尚的未來時，我們相信打造經久耐用的下一代品牌的核心在於我們的客戶無處不在，無論是直接面向消費者、通過批發合作夥伴、數字、移動還是在商店中。我們的品牌已經掌握了直接與客戶建立真實關係並提供出色體驗的能力，我們相信它們也會在其他渠道中表現出色。為此，我們將在 2023 年試行部分批發合作夥伴關係，我們還在今年下半年在南加州測試一家 Princess Polly 商店。我們將迎來激動人心的一年，充滿新的考驗和舉措，同時加強我們的資產負債表以推動長期盈利增長。

So let me share some highlights from our brand initiatives. Starting with our women's brands, using robust data and analytics in combination with comprehensive survey work, it's clear that Princess Polly customers are creating more ways to experience the brand. As mentioned, we're very excited that Princess Polly is piloting a store in Southern California this year, and we'll share more information on the store in the coming months. I'm also excited to announce that Princess Polly signed a wholesale agreement with PacSun to carry select best-selling styles online and in 15 stores.

因此，讓我分享我們品牌計劃的一些亮點。從我們的女裝品牌開始，使用可靠的數據和分析並結合全面的調查工作，很明顯，Princess Polly 的客戶正在創造更多體驗品牌的方式。如前所述，我們非常高興 Polly 公主今年將在南加州試點一家商店，我們將在未來幾個月內分享有關該商店的更多信息。我也很高興地宣布，Polly 公主與 PacSun 簽署了一項批發協議，在網上和 15 家商店銷售精選的暢銷款式。

PacSun is a strong strategic fit for Princess Polly's first wholesale engagement because they are also a top 10 brand according to Piper Sandler's "Taking Stock With Teens" survey. They have a large footprint in prime locations nationwide, providing convenience for our existing customers to physically experience the quality of the Princess Polly brand in stores, as well as the opportunities to acquire new customers and promote brand awareness. The partnership launched today and a broader rollout will follow this summer.

PacSun 非常適合波莉公主的首次批發參與，因為根據 Piper Sandler 的“Taking Stock With Teens”調查，它們也是前 10 大品牌。他們在全國黃金地段擁有大量足跡，為我們的現有客戶提供便利，讓他們能夠在商店中親身體驗 Princess Polly 品牌的品質，以及獲得新客戶和提升品牌知名度的機會。該合作夥伴關係於今天啟動，今年夏天將進行更廣泛的推廣。

While we're looking forward to the new initiatives for Princess Polly, the brand is also laser-focused on the core strategy. On the merchandising front, Princess Polly's core product has been about closed for going out and hanging out, but the brand is uniquely positioned to offer a full range of merchandise from formal dresses to vintage tees. To that end, they're expanding their formal wear offering for this year's prom season. And similar to Culture Kings, Princess Polly is also leveraging the print shop we acquired in 2021 to quickly print graphic tees.

在我們期待 Princess Polly 的新舉措的同時，該品牌也非常專注於核心戰略。在商品銷售方面，Princess Polly 的核心產品已經停止外出和閒逛，但該品牌的獨特定位是提供從正裝到復古 T 恤的全系列商品。為此，他們正在為今年的舞會季擴大正裝供應範圍。與 Culture Kings 類似，Princess Polly 也在利用我們在 2021 年收購的印刷店來快速印刷圖形 T 卹。

They're dropping 10 to 15 new [stores] per month, which is a mix of Princess Polly's branded merchandise and licensed properties. They recently launched a Betty Boop license collection that exceeds expectations, and we're excited for an upcoming partnership with the [NCAA]. Leaders in next-generation marketing, Princess Polly has mastered organically appearing on their customer screens and feeds, no matter the channel. They continue to lean heavily into TikTok, growing their follower base nearly 40% in 2022. And it's now a top-performing channel based on ROI. They've also fine-tuned and improved our TikTok influencer strategic partnerships with recent successful collaborations with influencer Alix Earle, who garnered over 4 million views in our campaigns and (inaudible) a micro-influencer who brought nearly 1,000 new customers to the brand.

他們每月開設 10 到 15 家新 [商店]，其中包括波莉公主的品牌商品和特許經營權。他們最近推出了超出預期的 Betty Boop 許可集合，我們很高興即將與 [NCAA] 建立合作夥伴關係。作為下一代營銷的領導者，波莉公主已經掌握了有機地出現在他們的客戶屏幕和提要上的能力，無論渠道如何。他們繼續大力依賴 TikTok，到 2022 年，他們的粉絲群增長了近 40%。而且它現在是基於投資回報率的最佳渠道。他們還通過最近與影響者 Alix Earle 的成功合作，對我們的 TikTok 影響者戰略合作夥伴關係進行了微調和改進，Alix Earle 在我們的活動中獲得了超過 400 萬的觀看次數，並且（聽不清）一位微型影響者為該品牌帶來了近 1,000 名新客戶。

We're also excited that Princess Polly is bringing back its in-person events with the launch of their spring break activation in Miami next week. Touring around popular hotspots in a branded Jeep, the Princess Polly team will be giving a [merge] gathering viral-worthy social media content and engaging with our customers. We're also hosting an exclusive party from influencers, college ambassadors and their top-tier loyalty members to promote the brand and increase customer engagement.

我們也很高興 Polly 公主下週將在邁阿密推出他們的春假活動，以恢復其面對面的活動。 Princess Polly 團隊將乘坐品牌吉普車遊覽熱門熱點地區，[合併] 收集具有病毒式傳播價值的社交媒體內容並與我們的客戶互動。我們還將舉辦一場由有影響力的人、大學大使和他們的頂級忠誠會員舉辦的獨家派對，以推廣品牌並提高客戶參與度。

As I noted earlier, we view wholesale as a brand-building activity and a seeds of growth for the back half of 2023, but mostly for '24 and beyond. In addition to piloting our wholesale strategy for Princess Polly with PacSun, we're in active discussions with other wholesale partners within the U.S. and internationally for all of our brands. We're also exploring marketplace opportunities and Petal & Pup launched on target marketplace last month and is gaining traction. We'll be selective on choosing wholesale and marketplace partners to ensure a strong strategic fit and partners that would enhance our brands' awareness.

正如我之前提到的，我們將批發視為一種品牌建設活動和 2023 年下半年的增長種子，但主要是針對 24 世紀及以後的增長。除了與 PacSun 一起試行我們的 Princess Polly 批發策略外，我們還在與美國和國際上的其他批發合作夥伴積極討論我們所有品牌的問題。我們也在探索市場機會，上個月在目標市場上推出了 Petal & Pup，並且越來越受歡迎。我們將有選擇性地選擇批發和市場合作夥伴，以確保強大的戰略契合度和合作夥伴，以提高我們品牌的知名度。

Turning now to our streetwear brands. As I mentioned earlier, we're bullish on Culture Kings expansion in the U.S., and I'm more confident than ever after seeing the initial success of the stores in Vegas. The store is exceeding expectations in revenue, traffic and brand building activities. Equally as exciting is the impact the stores having on online sales since it opened in early November. We've seen great traction with in-store events, drawing artists such as ASAP Ferg and athletes such as Kirk Cousins and Marlon Humphrey from the NFL. And celebrities such as Ludacris and Cascade have all shopped the Vegas store.

現在轉向我們的街頭服飾品牌。正如我之前提到的，我們看好 Culture Kings 在美國的擴張，在看到拉斯維加斯門店的初步成功後，我比以往任何時候都更有信心。該店在收入、客流量和品牌建設活動方面超出預期。同樣令人興奮的是這些商店自 11 月初開業以來對在線銷售的影響。我們已經看到店內活動的巨大吸引力，吸引了 ASAP Ferg 等繪畫藝術家和來自 NFL 的 Kirk Cousins 和 Marlon Humphrey 等運動員。 Ludacris 和 Cascade 等名人都曾在拉斯維加斯的商店購物。

They have robust marketing calendar and events lined up this year, both in the U.S. and Australia. This past weekend, Culture King had an official partnership with Rolling Loud, a big hip hop festival in L.A., where they had a branded stage and a basketball court and a merchandising [collab]. They also partnered with professional boxer Caleb Plant, who hosted a live stream boxing session in the Vegas store this week and released an exclusive collaboration with Minimal and Snoop Dogg DJs at the Melbourne Culture Kings store this past weekend.

他們今年在美國和澳大利亞都有強大的營銷日曆和活動安排。上週末，Culture King 與洛杉磯的大型嘻哈音樂節 Rolling Loud 建立了官方合作夥伴關係，在那裡他們有一個品牌舞台、一個籃球場和一個商品銷售 [collab]。他們還與職業拳擊手 Caleb Plant 合作，後者本週在維加斯商店主持了一場直播拳擊比賽，並於上週末在墨爾本 Culture Kings 商店發布了與 Minimal 和 Snoop Dogg DJ 的獨家合作。

As a reminder, unlike our women's brands, Culture Kings carries a mix of in-house design fashion brands and third-party Atlantic, footwear and fan gear power brands. We've always seen strong demand for the exclusive in-house design product in the U.S., which is now accelerated even further after the store opening. We're thrilled that 7 of the top 10 brands by sales in Vegas are in-house exclusive brands, including Minimal, which is now a top 10 brand on the Culture Kings website and in the Vegas store. In addition to the success of the in-house brands, we're excited that the store has unlocked new partnerships with third-party brands like New Balance and Crocs and more that will be available online and in stores in the coming months.

提醒一下，與我們的女裝品牌不同，Culture Kings 混合了內部設計時尚品牌和第三方 Atlantic、鞋類和風扇齒輪品牌。我們一直看到美國對獨家內部設計產品的強勁需求，現在在商店開業後進一步加速。我們很高興維加斯銷售額排名前 10 的品牌中有 7 個是內部獨家品牌，包括 Minimal，它現在是 Culture Kings 網站和維加斯商店中的前 10 品牌。除了自有品牌的成功之外，我們很高興這家商店與 New Balance 和 Crocs 等第三方品牌建立了新的合作夥伴關係，更多品牌將在未來幾個月內在網上和商店銷售。

I want to share that Simon and Tahnee Beard have stepped down from their day-to-day operating roles as co-CEOs of Culture Kings to spend time with their family and pursue entrepreneurial ventures. Simon and Tahnee have built an incredible brand over the last decade and have set the brand up for tremendous global success. They will transition to advisers to the company and Simon remains an active member of the AKA Board of Directors. I want to express my gratitude to Simon and Tahnee for their partnership through this transition and more importantly, their unwavering commitment to building the brand into the global success it is today.

我想分享一下，Simon 和 Tahnee Beard 已經辭去 Culture Kings 聯席 CEO 的日常運營職務，與家人共度時光並進行創業。 Simon 和 Tahnee 在過去十年中打造了一個令人難以置信的品牌，並為該品牌在全球取得巨大成功奠定了基礎。他們將過渡為公司顧問，西蒙仍然是 AKA 董事會的活躍成員。我要感謝 Simon 和 Tahnee 在這次過渡期間的合作夥伴關係，更重要的是，他們堅定不移地致力於將品牌打造成今天的全球成功。

Adrian Gribbin, Culture King's CFO, has been promoted to Chief Operating Officer; and Jon Yuska remains President of the U.S. We have confidence in this leadership team as they are industry veterans with 10-year backgrounds in global streetwear and retail.

Culture King 的首席財務官 Adrian Gribbin 已晉升為首席運營官；喬恩·尤斯卡 (Jon Yuska) 仍將擔任美國總裁。我們對這個領導團隊充滿信心，因為他們是在全球街頭服飾和零售領域擁有 10 年背景的行業資深人士。

I also want to share that subsequent to quarter end, we sold Rebdolls back to the Founder, Grisel Paula. The brand saw tremendous growth under our ownership, and we believe it is -- we believe in its long-term success, but we've determined that the brands of Rebdolls size does not experience the full potential of the AKA platform. I want to thank Grisel for her partnership over the past 3 years, and we're excited to remain a minority shareholder in the brand.

我還想分享一下，在季度末之後，我們將 Rebdolls 賣回給了創始人 Grisel Paula。該品牌在我們的所有權下實現了巨大的增長，我們相信它是——我們相信它的長期成功，但我們已經確定 Rebdolls 規模的品牌無法充分發揮 AKA 平台的潛力。我要感謝 Grisel 在過去 3 年的合作夥伴關係，我們很高興能繼續成為該品牌的少數股東。

To conclude, I want to give you my perspective on 2023 and beyond. We anticipate that the macro environment will remain dynamic and pressured in the coming year. But as you've heard today, we're evolving our model and our strategies to build high-quality, durable fashion brands for the long term. We're testing new ways to expand awareness and grow our customer base across the portfolio. We're aligned and nimble and will move even faster to accelerate these brands while continuing to deliver profit. We're viewing 2023 as a year to test and learn new channels and innovations was simultaneously strengthening our balance sheet.

最後，我想談談我對 2023 年及以後的看法。我們預計來年宏觀環境仍將充滿活力和壓力。但正如您今天所聽到的那樣，我們正在改進我們的模式和戰略，以長期打造高品質、經久耐用的時尚品牌。我們正在測試新的方法來擴大知名度並在整個產品組合中擴大我們的客戶群。我們協調一致，行動敏捷，將更快地推動這些品牌的發展，同時繼續創造利潤。我們將 2023 年視為測試和學習新渠道的一年，創新同時加強了我們的資產負債表。

When I think about the long term, I'm confident that we have significant opportunity to deliver both growth and profit as Gen Z and Millennials continue to gain spending power. Our brands are young and at the beginning of their life cycles with tremendous global runway ahead of them. We'll continue to manage our business prudently and I'm looking forward to an exciting year.

當我考慮長期時，我相信隨著 Z 世代和千禧一代繼續獲得消費能力，我們有機會實現增長和利潤。我們的品牌還很年輕，正處於生命週期的開端，前面還有巨大的全球跑道。我們將繼續謹慎地管理我們的業務，我期待著激動人心的一年。

Now let me turn to my comments on the financials. Our fourth quarter results were softer than we anticipated, largely due to the macro environment and our strategic decision to pull back on marketing spend as we balance profitability during the holiday season that became even more promotional than we anticipated in the second half of the quarter. We also made the decision not to compete at the same promotional and discount levels as our peers and held our promotions roughly flat to last year to protect the long-term integrity of our brands.

現在讓我談談我對財務狀況的評論。我們第四季度的業績比我們預期的要疲軟，這主要是由於宏觀環境和我們縮減營銷支出的戰略決定，因為我們在假期期間平衡了盈利能力，這比我們在本季度下半年的預期更具促銷性。我們還決定不在與同行相同的促銷和折扣水平上競爭，並將我們的促銷活動與去年大致持平，以保護我們品牌的長期誠信。

And lastly, we aggressively brought down inventory in the back half of the year, particularly in our women's brands, which we believe impacted newness, our top line results and our margins. The combination of these factors resulted in 4 quarter sales that came in below expectations. The lower [implant] sales, combined with a lower gross margin deleveraged at the middle of the P&L. That said, we continue to make progress on strengthening our balance sheet in the fourth quarter. We delivered another quarter of positive operating cash flow. We registered sequential improvements on inventory hitting our quarter-end gold with continued improvements ahead in 2023.

最後，我們在今年下半年積極降低庫存，尤其是我們的女性品牌，我們認為這影響了新品、我們的頂線業績和利潤率。這些因素的結合導致第 4 季度的銷售額低於預期。較低的 [植入] 銷售額，加上較低的毛利率，在 P&L 的中間去槓桿化。也就是說，我們在第四季度繼續在加強資產負債表方面取得進展。我們又交付了四分之一的正經營現金流。我們記錄了庫存的連續改善，達到了我們的季度末黃金，並在 2023 年繼續改善。

We continued reducing our outbound shipping and fulfillment costs, which laid the foundation for greater cost efficiencies this year. And as I mentioned, we remain disciplined on the promotional front, limiting the breadth and depth of our discounts, protecting our brands. Additionally, subsequent to quarter end, we paid down $6 million of our revolver. Despite the challenging environment, I'm confident that we are well positioned for the upcoming year as we look to improve our operating model and exit 2023 with growing brands and a much stronger balance sheet.

我們繼續降低出境運輸和履行成本，這為今年提高成本效率奠定了基礎。正如我提到的，我們在促銷方面保持紀律，限制折扣的廣度和深度，保護我們的品牌。此外，在季度末之後，我們支付了 600 萬美元的左輪手槍。儘管環境充滿挑戰，但我相信我們為來年做好了準備，因為我們希望改進我們的運營模式，並在 2023 年以不斷壯大的品牌和更強大的資產負債表退出。

Before I go through the results in more detail, let me spend a few minutes on the non-cash impairment charge related to our acquisition of Culture Kings that you saw in our filing. The $173.8 million charge relates to an updated valuation of the Culture Kings business since acquisition, which is a result of the adverse economic trends in the fourth quarter, including inflation and interest rates as well as pressured consumer demand. This charge does not impact our cash position, debt covenants or future operations. As mentioned, we are pleased with the performance of the Culture Kings store and the halo effect in online sales, and it gives us confidence in the future of the brand in the U.S.

在我更詳細地介紹結果之前，讓我花幾分鐘時間談談您在我們的文件中看到的與我們收購 Culture Kings 相關的非現金減值費用。 1.738 億美元的費用與 Culture Kings 業務自收購以來的最新估值有關，這是第四季度不利經濟趨勢的結果，包括通貨膨脹和利率以及消費者需求壓力。這筆費用不會影響我們的現金狀況、債務契約或未來運營。如上所述，我們對 Culture Kings 門店的表現和在線銷售的光環效應感到滿意，這讓我們對品牌在美國的未來充滿信心。

Now for a detailed discussion on our results. For the fourth quarter, net sales declined 18% to $149 million compared to $182 million last year. On a constant currency basis, net sales were down 13% or $24 million. Active customers on a trailing 12-month basis was up 3%. Total fourth quarter orders were down 14% to last year at $1.9 million from lower marketing spend and the average order value of $77 was down 8% on a reported basis and flat in constant currency due to a lower mix of full price items.

現在對我們的結果進行詳細討論。第四季度淨銷售額下降 18% 至 1.49 億美元，而去年同期為 1.82 億美元。按固定匯率計算，淨銷售額下降 13% 或 2,400 萬美元。過去 12 個月的活躍客戶增長了 3%。由於營銷支出減少，第四季度總訂單量為 190 萬美元，較去年同期下降 14%，平均訂單價值 77 美元，按報告基礎下降 8%，由於全價商品組合較低，按固定匯率計算持平。

Now I'll provide a few highlights from our 3 regions. In the U.S., fourth quarter net sales decreased to $71 million, down 11% from the fourth quarter last year, driven by macro factors, including softness in demand trends, the highly promotional macro environment, fewer new styles in our women's brands as we look through -- move through inventory in the back half and our decision to pull back on marketing.

現在我將提供我們 3 個地區的一些亮點。在美國，第四季度淨銷售額下降至 7100 萬美元，比去年第四季度下降 11%，這是受宏觀因素的推動，包括需求趨勢疲軟、促銷力度大的宏觀環境、女性品牌的新款式減少通過——通過後半部分的庫存和我們撤回營銷的決定。

Australia net sales decreased 21% to $61 million or were down 12% on a constant currency basis. Australia net sales were impacted by similar macroeconomic environment trends in the U.S., including softer demand and inflationary pressures as well as an exaggerated shift of customers returning to stores post pandemic. Notably, in the fourth quarter, Culture Kings stores continued to be the fastest-growing area of the business in Australia.

澳大利亞淨銷售額下降 21% 至 6,100 萬美元，按固定匯率計算下降 12%。澳大利亞的淨銷售額受到與美國類似的宏觀經濟環境趨勢的影響，包括需求疲軟和通脹壓力，以及大流行後顧客返回商店的過度轉移。值得注意的是，在第四季度，Culture Kings 門店繼續成為澳大利亞業務增長最快的領域。

Turning to Rest of the World. Net sales of $18 million decreased 33% from the fourth quarter in the prior year. Similar to the third quarter, given the significant depreciation of the U.S. dollar, we made a strategic decision to shift marketing dollars from the U.K. and Europe to our main regions that have higher returns. Additionally, our pricing model for markets outside of the U.S. and Australia is tied to the U.S. dollar. So when the dollar strengthens, our products become more expensive for customers in international regions.

轉向世界其他地方。淨銷售額為 1800 萬美元，較去年第四季度下降 33%。與第三季度類似，鑑於美元大幅貶值，我們做出了將營銷資金從英國和歐洲轉移到回報率更高的主要地區的戰略決策。此外，我們針對美國和澳大利亞以外市場的定價模型與美元掛鉤。因此，當美元走強時，我們的產品對國際地區的客戶來說變得更加昂貴。

Moving to profitability. Reported gross margins in the fourth quarter was 52.8% versus 54.6% in the same period last year or a decline of 180 basis points. When adjusted for the impact of the $3.7 million Culture Kings inventory step-up in the fourth quarter last year, gross margins would have declined 360 basis points, largely the result of a lower mix of full price items. Additionally, we continue to experience elevated freight rates as we work through older inventory.

轉向盈利。第四季度報告的毛利率為 52.8%，而去年同期為 54.6%，下降了 180 個基點。如果根據去年第四季度 Culture Kings 庫存增加 370 萬美元的影響進行調整，毛利率將下降 360 個基點，這主要是由於全價商品組合較低。此外，隨著我們處理舊庫存，我們繼續經歷高運費。

Selling expenses were $39 million compared to $45.5 million in the fourth quarter of 2021. Selling expenses were 26.2% of net sales compared to 24.9% of net sales in the fourth quarter of 2021. The increase was primarily due to fixed cost deleveraging in our distribution centers given the lower volume of sales, partially offset by improvements we've made on outbound shipping and labor productivity. Importantly, we continue to make progress, and this was the second quarter of sequential rate improvement in selling expenses.

銷售費用為 3900 萬美元，而 2021 年第四季度為 4550 萬美元。銷售費用占淨銷售額的 26.2%，而 2021 年第四季度為 24.9%。增加的主要原因是我們分銷中的固定成本去槓桿化鑑於銷售額較低，部分被我們在出境運輸和勞動生產率方面所做的改進所抵消。重要的是，我們繼續取得進展，這是銷售費用環比改善率的第二個季度。

Marketing expenses were $15.4 million compared to $21.5 million in the fourth quarter of 2021, a 28% reduction. On a rate basis, marketing expenses were 10.3% of net sales compared to 11.8% of net sales in the fourth quarter of 2021. The lower marketing expenses as a percent of sales was due to our strategic decision to pull back on spend as we balance both sales and profitability. As I mentioned, as we went through the quarter, we determined the return on incremental marketing spend was lower than prior levels, given the heightened levels of promotion during the holiday season. As we go through Q1, we are seeing some reduction in promotional intensity, and we're increasing our marketing spend with the expectation that we'll be around 12% of net sales from marketing expense in Q1.

營銷費用為 1540 萬美元，與 2021 年第四季度的 2150 萬美元相比減少了 28%。按比率計算，營銷費用占淨銷售額的 10.3%，而 2021 年第四季度占淨銷售額的 11.8%。營銷費用佔銷售額的百分比較低是由於我們的戰略決策是在平衡時縮減支出無論是銷量還是盈利能力。正如我所提到的，在整個季度中，我們確定增量營銷支出的回報率低於之前的水平，因為假期期間促銷水平更高。在我們經歷第一季度時，我們看到促銷強度有所降低，我們正在增加營銷支出，預計第一季度營銷費用將占淨銷售額的 12% 左右。

General and administrative expenses were $26.1 million compared to $27.3 million in the fourth quarter of 2021. On a rate basis, G&A expense were 17.5% of net sales compared to 14.9% of net sales in the fourth quarter of 2021. The increase in G&A expenses as a percent of net sales was primarily due to lower sales in the fourth quarter of 2022.

一般和行政費用為 2610 萬美元，而 2021 年第四季度為 2730 萬美元。按比率計算，G&A 費用占淨銷售額的 17.5%，而 2021 年第四季度為 14.9%。G&A 費用增加占淨銷售額的百分比主要是由於 2022 年第四季度的銷售額下降。

Adjusted EBITDA was $6.1 million or 4.1% of net sales compared to $16.1 million or 8.8% of net sales in the fourth quarter of 2021. Net loss as adjusted was $3.4 million or $0.03 per share in the fourth quarter of 2022 compared to a net income of $4.3 million or $0.03 per share in the same period last year.

調整後的 EBITDA 為 610 萬美元，占淨銷售額的 4.1%，而 2021 年第四季度為 1610 萬美元，占淨銷售額的 8.8%。與淨收入相比，2022 年第四季度調整後的淨虧損為 340 萬美元，即每股 0.03 美元去年同期為 430 萬美元或每股 0.03 美元。

Turning to the balance sheet. We ended the quarter with $46 million in cash and cash equivalents and $144 million in debt. At the end of the quarter, we had total liquidity of approximately $56 million. Inventory at the end of the quarter was $127 million compared to $116 million at the end of the fourth quarter of 2021. While we were up in inventory dollars year-over-year, inventory units are down 2% compared to last year. The increase in inventory year-over-year was primarily associated with Culture Kings new fulfillment center, the U.S. store opening and higher air freight expense.

轉向資產負債表。本季度末，我們擁有 4600 萬美元的現金和現金等價物以及 1.44 億美元的債務。本季度末，我們的流動資金總額約為 5600 萬美元。本季度末的庫存為 1.27 億美元，而 2021 年第四季度末為 1.16 億美元。雖然我們的庫存美元同比增長，但庫存單位與去年相比下降了 2%。庫存同比增長主要與 Culture Kings 新運營中心、美國門店開業和更高的空運費用有關。

Compared to the end of the third quarter, inventory decreased $10.4 million or 8% and is down 5% on a unit basis. And inventory is down $17 million since the second quarter of 2022. Overall, we are pleased with the sequential improvement in inventory in the back half of 2022, and we feel confident in the composition, newness and quality of our inventory and expect to see continued sequential decline in inventory dollars and units in fiscal 2023 on a constant currency basis.

與第三季度末相比，存貨減少了 1040 萬美元或 8%，單位數量下降了 5%。自 2022 年第二季度以來，庫存下降了 1700 萬美元。總體而言，我們對 2022 年下半年庫存的環比改善感到滿意，我們對庫存的構成、新穎性和質量充滿信心，並希望看到繼續在固定貨幣基礎上，2023 財年庫存美元和單位連續下降。

Touching on cash flow. In the fourth quarter, we generated $11.1 million of operating cash flow, marking the second quarter of positive cash flow generation in fiscal 2022. In the back half of 2022, we generated $23 million of operating cash flow.

涉及現金流。第四季度，我們產生了 1110 萬美元的運營現金流，標誌著 2022 財年第二季度產生正現金流。2022 年下半年，我們產生了 2300 萬美元的運營現金流。

Turning to our outlook. As we look to 2023 and beyond, we want to continue to build these brands to meet their long-term potential, which is why we're testing the omnichannel initiatives that I laid out. While we're doing that, we're also going to strengthen our balance sheet so we can build optionality and reinvest in the business. We are anticipating another year of macroeconomic pressure on both the consumer side as well as the expense side, and we'll continue to manage the business prudently. Overall, for the year, we expect to deliver between USD570 million to USD600 million in net sales. We're anticipating the first half of the year to be more challenging from a comp perspective due to our strong performance in the first half of last year when the consumer was excited to go back to festivals and traveling, and we anticipate comps easing in the back half.

轉向我們的前景。展望 2023 年及以後，我們希望繼續打造這些品牌以發揮其長期潛力，這就是為什麼我們正在測試我提出的全渠道計劃。在我們這樣做的同時，我們還將加強我們的資產負債表，以便我們可以建立可選性並對業務進行再投資。我們預計消費端和支出端的宏觀經濟壓力又將持續一年，我們將繼續審慎經營業務。總體而言，我們預計今年的淨銷售額將在 5.7 億美元至 6 億美元之間。由於我們去年上半年的強勁表現，當時消費者很高興回到節日和旅行，我們預計今年上半年從補償的角度來看更具挑戰性，我們預計補償會放鬆後半。

Importantly, with an improved level of units in our inventory mix and if we see better performance in marketing channels, we have the potential to increase our marketing spend to drive top line sales and EBITDA dollars as the year progresses. Our new omni-channel initiatives, including the Princess Polly store and wholesale represents small initial tests that will not be -- have a material impact on our financial performance in 2023 and are baked into our guidance. Our focus on testing new channels of distribution in 2023 will set the stage for future expansion of our market reach and growth over time.

重要的是，隨著我們庫存組合中單位水平的提高，如果我們在營銷渠道中看到更好的表現，我們有可能增加我們的營銷支出，以推動頂線銷售額和 EBITDA 美元。我們新的全渠道計劃，包括 Princess Polly 商店和批發，代表了初步的小測試，這些測試不會對我們 2023 年的財務業績產生重大影響，並已納入我們的指導方針。我們專注於在 2023 年測試新的分銷渠道，這將為我們未來擴大市場範圍和隨著時間的推移實現增長奠定基礎。

For the year, we expect to see year-over-year improvements in gross margin rate of about 100 basis points as we get past the elevated air freight rates that we saw in 2022. In selling expenses, we expect the overall rate for the year to be in line with the overall rate we experienced in 2022. We'll see higher rates in the first half of the year due to lower sales volume compared to last year. In G&A, we anticipate limited dollar growth spend year-over-year while ensuring we are driving efficiencies across the business and supporting future growth opportunities. All of these factors taken together, we anticipate delivering USD35 million to USD37 million of EBITDA for the year. We expect tax rate of 30% and weighted average shares outstanding of approximately $130 million.

對於這一年，我們預計隨著 2022 年空運費率的上漲，毛利率將同比提高約 100 個基點。在銷售費用方面，我們預計今年的整體毛利率與我們在 2022 年經歷的總體利率一致。由於與去年相比銷量下降，我們將在今年上半年看到更高的利率。在 G&A 方面，我們預計美元支出同比增長有限，同時確保我們提高整個企業的效率並支持未來的增長機會。綜合所有這些因素，我們預計今年的 EBITDA 將達到 3500 萬美元至 3700 萬美元。我們預計稅率為 30%，加權平均流通股約為 1.3 億美元。

I also want to call out the improvements that we're expecting in free cash flows and levers we have in this area. Firstly, we expect capital expenditures to be in the range of USD8 million to USD10 million this year, significantly down from last year's $20 million. Secondly, we expect to see continued improvements on inventory turns and lower inventory dollars as we go through this year. These 2 areas, combined with improving EBITDA will allow us to reduce our debt, improve our leverage and strengthen our balance sheet. As mentioned, subsequent to quarter end, we paid off $6 million of debt, and we expect to continue to pay down our debt as we go through 2023.

我還想指出我們期望在這一領域的自由現金流和槓桿方面的改進。首先，我們預計今年的資本支出將在 800 萬美元至 1000 萬美元之間，大大低於去年的 2000 萬美元。其次，我們預計今年將繼續改善庫存周轉率並降低庫存美元。這兩個領域與 EBITDA 的改善相結合，將使我們能夠減少債務、提高槓桿率並加強資產負債表。如前所述，在季度末之後，我們還清了 600 萬美元的債務，我們預計在 2023 年之前將繼續償還債務。

Looking at the first quarter, we're anticipating net sales of USD113 million to USD116 million and EBITDA of USD1.5 million to USD1.8 million. While we continue to manage our business through the current macro challenges, we remain confident in the long-term growth and success of our brands and business model.

展望第一季度，我們預計淨銷售額為 1.13 億美元至 1.16 億美元，EBITDA 為 150 萬美元至 180 萬美元。在我們繼續通過當前的宏觀挑戰管理我們的業務的同時，我們對我們品牌和商業模式的長期增長和成功充滿信心。

Now we'll open it up for questions.

現在我們將打開它來提問。

(Operator Instructions) And our first question is from the line of Randy Konik with Jefferies.

（操作員說明）我們的第一個問題來自 Randy Konik 與 Jefferies 的合作。

(technical difficulty) First, just want to get your perspective on just the U.S. consumer relative to the Australian consumer. Maybe give us a perspective on how do you feel different or the same? And then just on the -- related to that just on the markdown environment, commercial environment, it sounds like you think it will be better, give us a bit (technical difficulty).

（技術難度）首先，只想了解一下美國消費者相對於澳大利亞消費者的看法。也許給我們一個關於您如何感覺不同或相同的觀點？然後就——與降價環境、商業環境相關，聽起來你認為它會更好，給我們一點（技術難度）。

Yes, I think as we kind of step back and think about kind of Q4 and what we saw in the U.S. versus Australia, I would say in the U.S., we did see trends as we went through the quarter, certainly get much more promotional and the promotional intensity increased significantly more than we had expected as we went through the quarter. I would say we actually saw that in both regions. We have seen the promotional intensity in the U.S. ease a little bit as we've kind of gone through the second half of Q1. And I think just that's happening as well a little bit in both regions.

是的，我認為當我們退後一步思考第四季度的情況以及我們在美國和澳大利亞看到的情況時，我會說在美國，我們確實看到了整個季度的趨勢，肯定會得到更多的促銷和在整個季度中，促銷強度的增加大大超過了我們的預期。我想說我們實際上在這兩個地區都看到了這一點。我們已經看到美國的促銷強度有所緩和，因為我們已經經歷了第一季度的下半年。而且我認為這在這兩個地區都有所發生。

I think as we think about the consumer, I think one of the advantages that we have is just the 4 brands in Australia and with Culture Kings stores, we're seeing consistency in the consumer pressure, I guess, across the brands in Australia. We are seeing the stores doing well. The stores in Australia are the fastest-growing area of the business in Australia. So I think people are back kind of going out, spending more on experiential being back in stores, enjoying that, enjoying all of that, a bit that we've seen in the U.S., although it seems like the Australian consumer is kind of maybe 1 or 2 quarters behind where the U.S. consumer is.

我認為，當我們考慮消費者時，我認為我們擁有的優勢之一就是澳大利亞的 4 個品牌和 Culture Kings 商店，我想，我們看到澳大利亞所有品牌的消費者壓力是一致的。我們看到商店做得很好。澳大利亞的門店是澳大利亞業務增長最快的地區。所以我認為人們又回到了外出，在回到商店的體驗上花費更多，享受這些，享受所有這些，我們在美國看到了一點，儘管澳大利亞消費者似乎有點可能落後美國消費者 1 或 2 個季度。

And then just on the markdown environment, I kind of talked a little bit about the trends. I think we do -- kind of as we think about the year, we are expecting that to continue. And the promotional environment from a macro perspective, we obviously see the consumer is challenged and we have baked that into the guidance.

然後就降價環境而言，我談到了一些趨勢。我認為我們會這樣做——就像我們對這一年的看法一樣，我們希望這種情況會繼續下去。從宏觀角度來看促銷環境，我們顯然看到消費者受到挑戰，我們已將其納入指導。

And then just one other question on long-term nature you kind of talk a little bit about, early see wholesale orders. And obviously, a couple of stores here and there, you just think how you think about long-term mix of the business from e-com holding to stores (technical difficulty) wholesale? And if that change how you think about normalized dollars of CapEx per year and what the normalized marketing rate as a percent of sales should be, just curious on kind of how you think about that?

然後還有一個關於長期性質的問題，你稍微談一下，早期看到批發訂單。很明顯，這里和那裡有幾家商店，你只是想你如何看待從電子商務控股到商店（技術難度）批發的長期業務組合？如果這改變了你對每年資本支出標準化美元的看法，以及標準化營銷率佔銷售額的百分比應該是多少，只是想知道你是怎麼想的？

I think, first, look, as we look to the kind of the long-term future fashion or interest in building long-term brands and we really think we have the brands to do that. They're very early on in their life. I think at this point, our brands have mastered that authentic relationship with customers online, right? They just do a great job with that -- all of the brands. I think at this point, we also see having the Culture Kings stores in Australia, the progress we're seeing and the success we're seeing with the Culture Kings store in U.S., we do feel that we do want to be omnichannel for our customers and particularly to introduce new customers to the brand.

我認為，首先，看，當我們著眼於未來的長期時尚或對建立長期品牌的興趣時，我們真的認為我們有品牌可以做到這一點。他們的生命還很早。我認為在這一點上，我們的品牌已經掌握了與在線客戶的真實關係，對嗎？他們在這方面做得很好——所有品牌。我認為在這一點上，我們也看到了澳大利亞的 Culture Kings 商店，我們看到的進步以及我們在美國看到的 Culture Kings 商店的成功，我們確實覺得我們確實希望成為我們的全渠道客戶，特別是向品牌介紹新客戶。

And just like we're kind of everywhere from a marketing perspective, where our customers are, we also feel that's important from an omnichannel perspective. I think we are -- we have some really nice tests kind of in the field right now. I think from a long-term perspective, we're obviously looking for these to continue to bring revenue to bring additional EBITDA dollars. I think over -- we would certainly expect it to be accretive overall. I think as it relates to kind of gross margins, marketing, I think we'll let these tests play out a little bit, and we certainly actively share how they're doing with you guys and what we feel it will do to the long-term model.

就像我們從營銷的角度來看無處不在，我們的客戶在哪裡，從全渠道的角度來看，我們也覺得這很重要。我認為我們 - 我們現在在現場進行了一些非常好的測試。我認為從長遠的角度來看，我們顯然正在尋找這些繼續帶來收入以帶來額外的 EBITDA 美元。我仔細想想——我們當然會期望它總體上是增值的。我認為這與毛利率、營銷有關，我認為我們會讓這些測試發揮一些作用，我們當然會積極地與你們分享他們的表現以及我們認為它會長期發揮作用- 期限模型。

Our next question is from the line of Dana Telsey of Telsey Advisory Group.

我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

And best wishes for speedy recovery for Jill. Ciaran, as you think about the business model and what it is, how big a percentage do you expect wholesale to get to? And when you think about Princess Polly and obviously, Petal & Pup, what are you thinking about pricing as we move forward in 2023 with promotions on full price? Are you seeing any cadence of new designs improve? And what does your customer told you, any feedback from all the data with your customer? What they expect to spend, how they're spending their dollars and how you're managing expenses during this time period?

並祝愿吉爾早日康復。 Ciaran，當你考慮商業模式和它是什麼時，你希望批發達到多大百分比？當您想到 Polly 公主，顯然還有 Petal & Pup，隨著我們在 2023 年全價促銷，您對定價有何看法？您是否看到新設計的節奏有所改進？您的客戶告訴您什麼，您的客戶對所有數據的任何反饋？他們期望花費甚麼，他們如何花錢以及您在此期間如何管理費用？

And then just lastly, what holes are you looking to fill within the management team now given the departure of the Culture Kings founders and perhaps any other shifts there?

最後，考慮到 Culture Kings 創始人的離職以及那裡可能發生的任何其他轉變，您現在希望填補管理團隊中的哪些空缺？

I think as it relates to wholesale, look, first, I think we're really happy that we're starting more tests in the wholesale channel and in the stores channel. I think we are always going to be predominantly a direct-to-consumer brands and have that kind of one-on-one relationship with our brands. So I don't think we have any -- we have no long-term targets of how big we want the wholesale channel to be our stores. As it relates to pricing, I think and the consumer, I think what we have seen as we went through Q4 and early Q1, they are -- consumers continue to be interested in newness, but we did see them certainly buy more markdown products than we have seen in the past.

我認為這與批發有關，首先，我認為我們真的很高興我們在批發渠道和商店渠道開始更多測試。我認為我們將始終以直接面向消費者的品牌為主，並與我們的品牌建立那種一對一的關係。所以我認為我們沒有 - 我們沒有長期目標，我們希望批發渠道成為我們的商店。由於它與定價有關，我認為和消費者，我認為我們在第四季度和第一季度初看到的情況是——消費者繼續對新鮮事物感興趣，但我們確實看到他們購買的降價產品肯定比我們過去見過。

Although we kind of -- we saw AOV just down slightly on a constant currency basis, I would say AUR down a bit more, but the consumer was kind of putting more units in the basket kind of as they looked for that markdown. For us, I think, as we think about the year, kind of expecting that to continue and no big changes there. I think there's just a lot going on in the macro environment. And obviously, lapping kind of strong comps in the first half of the year, easing in the back half. So I think we're just -- we're kind of aware of that as we kind of built our guidance as we think about the year and as we think about really our focus areas.

儘管我們有點——我們看到 AOV 在固定匯率的基礎上略有下降，我會說 AUR 下降更多一點，但消費者在尋找降價時有點把更多的單位放在籃子裡。對於我們來說，我認為，當我們思考這一年時，有點期待這種情況會繼續下去，不會有太大的變化。我認為宏觀環境中發生了很多事情。顯然，上半年表現強勁，下半年有所緩解。所以我認為我們只是 - 我們有點意識到這一點，因為我們在考慮這一年以及我們真正考慮我們的重點領域時建立了我們的指導。

And for us, a lot of those are continuing beyond the initiatives but also strengthening the balance sheet. I think we're going to look to -- we made some nice improvements on inventory in the back half. Cash flow -- positive cash flow in the back half of the year of EUR24 million. I think we're going to want to do sequential improvements or reduction in inventory dollars and using that to pay down debt, reduce leverage and just continue to strengthen the balance sheet.

對我們來說，其中很多都在繼續超越這些舉措，但也在加強資產負債表。我認為我們會關注 - 我們在後半部分對庫存進行了一些不錯的改進。現金流——下半年的正現金流為 2400 萬歐元。我認為我們將想要連續改進或減少庫存美元，並用它來償還債務、降低杠桿率並繼續加強資產負債表。

And then as it relates to Culture Kings, I think as well, Simon and Tahnee as well as building a great brand. They've also built a great team. And it's a team that's been able to execute across regions, open the store in Vegas, it's doing really well, we're really happy with it. We have Adrian there and based in Australia, now elevated to the Chief Operating Officer and CFO; [John Jeske] in the U.S., I think the whole team are doing really well. And right now, we don't feel that there's a need to bring on more management.

然後，當它與 Culture Kings 相關時，我認為還有 Simon 和 Tahnee 以及建立一個偉大的品牌。他們還建立了一個偉大的團隊。這是一個能夠跨地區執行的團隊，在拉斯維加斯開設商店，它做得非常好，我們對此非常滿意。我們在那裡有 Adrian，常駐澳大利亞，現在已晉升為首席運營官和首席財務官； [John Jeske] 在美國，我認為整個團隊都做得很好。而現在，我們認為沒有必要引入更多的管理。

Our next question is from the line of Lorraine Hutchinson with Bank of America.

我們的下一個問題來自美國銀行的 Lorraine Hutchinson。

This is Alice Shaw on for Lorraine Hutchinson. And please send Jill our best. So 2 bigger picture questions. Any changes to how you're thinking about the 2 acquisitions per year sort of business model? And like is the shift now towards focusing on collaborations and new channels maybe? And then also on the long-term goal of obtaining low to mid-teens operating margins, what are updated expectations on the time line to get there?

這是洛林哈欽森的愛麗絲肖。請把我們最好的送給吉爾。所以 2 個更大的問題。您對每年 2 次收購這種商業模式的看法有何變化？就像現在轉向專注於合作和新渠道一樣嗎？然後還有關於獲得中低營業利潤率的長期目標，對實現目標的時間表有何最新預期？

Yes, on the first question, I think for where we are right now, I think -- we are really happy with the 4 brands that we have. They are -- they work well together, very synergistic. I think we feel that they're very early in their life cycle and have just a huge amount of long-term growth. And I think kind of leveraging the authentic relationships that they have today is kind of the right time now to be pushing into wholesale and the omnichannel initiatives with them.

是的，關於第一個問題，我認為我們現在所處的位置，我認為 - 我們對我們擁有的 4 個品牌非常滿意。他們 - 他們一起工作得很好，非常協同。我認為我們認為它們處於生命週期的早期，並且只有大量的長期增長。而且我認為利用他們今天擁有的真實關係是與他們一起推動批發和全渠道計劃的合適時機。

I think with that, yes, I would say kind of this year, we'll be certainly focused on those initiatives, strengthening the balance sheet. And I think it's kind of probably -- that's the focus area for use of cash. I think we'll continue to look at acquisitions as opportunities. But I would say the 4 brands that we have today and growing them organically is kind of focus #1.

我認為，是的，我想說今年，我們肯定會專注於這些舉措，加強資產負債表。而且我認為這可能是 - 這是使用現金的重點領域。我認為我們將繼續將收購視為機遇。但我要說的是，我們今天擁有的 4 個品牌並有機地發展它們是我們關注的焦點 #1。

And then from a long-term EBITDA model, I absolutely believe we can be kind of long term in the kind of those low to mid-teens. I think we're obviously going through a very disruptive period from a macro environment perspective, still going through it. I think when I look at the middle of the P&L and kind of what we can control, we certainly have the cost structure and the business model to get there. I think it will just take a little bit of time to get sales volume up, really to bring down that G&A percentage and leverage there.

然後從長期的 EBITDA 模型來看，我絕對相信我們可以在那些低到中等的青少年中長期發展。我認為從宏觀環境的角度來看，我們顯然正在經歷一個非常混亂的時期，並且仍在經歷它。我認為，當我查看損益表的中間部分以及我們可以控制的東西時，我們當然有成本結構和商業模式來實現這一目標。我認為只需要一點時間就可以提高銷量，真正降低 G&A 百分比和槓桿率。

Our next question is from the line of Edward Yruma with Piper Sandler.

我們的下一個問題來自 Edward Yruma 和 Piper Sandler。

Thoughts for Jill on a speedy recovery. Two quick ones for me, I guess, first on Rebdolls, I know it wasn't that significant, but is this part of a broader kind of strategic rethink of the portfolio or is this just really a one-off? And then second, as it relates to wholesale, if you do make a bigger push in there, is there investment required to build out the requisite team to service wholesale accounts?

祝吉爾早日康復。我想對我來說有兩個快速的，首先是關於 Rebdolls，我知道這不是那麼重要，但這是對投資組合進行更廣泛的戰略反思的一部分，還是這真的是一次性的？其次，與批發有關，如果你確實在這方面做出更大的努力，是否需要投資來建立必要的團隊來為批發賬戶提供服務？

First, in Rebdolls, look, we're big fans of the brand. We're big friends of Grisel, the CEO there. I think what we saw is that at its size, and it did see a lot of growth when it came into the AKA family and portfolio. What we saw is it was doing about $10 million and really just not at the size where it could get the full benefits of the AKA platform. And with that, we just felt for the long-term success of the brand, it was really better back with Grisel as the owner and running that brand. So I would say, a one-off very much looking for the continued success of that brand.

首先，在 Rebdolls，看，我們是該品牌的忠實粉絲。我們是那裡的首席執行官 Grisel 的好朋友。我認為我們看到的是它的規模，當它進入 AKA 家族和產品組合時確實看到了很大的增長。我們看到它做了大約 1000 萬美元，而且實際上還沒有達到可以從 AKA 平台獲得全部好處的規模。有了這個，我們只是覺得該品牌的長期成功，讓 Grisel 成為所有者並經營該品牌真的更好。所以我想說，一次性非常期待該品牌的持續成功。

And then just from a wholesale perspective, at the AKA level, we do have people with expertise in wholesale with a lot of expertise in wholesale from a relationships deal structure, things like that. And with our flexible technology stack, it's easy for us to kind of add in additional tools, orders, information can flow through the Shopify platform and very seamlessly flow through all of our systems. We're already doing that today for some of the wholesale orders that we've processed. And so don't feel or don't feel a need to have a big investment or kind of a difficult technology to work through for us to scale wholesale.

然後從批發的角度來看，在 AKA 級別，我們確實擁有批發方面的專業知識，並且從關係交易結構等方面擁有大量批發方面的專業知識。借助我們靈活的技術堆棧，我們可以輕鬆地添加額外的工具、訂單、信息，這些信息可以流經 Shopify 平台，並非常無縫地流經我們所有的系統。我們今天已經在處理一些我們處理過的批發訂單。因此，不覺得或不覺得需要大量投資或某種困難的技術來解決我們的批發規模問題。

The next question is from the line of Oliver Chen with Cowen.

下一個問題來自 Oliver Chen 和 Cowen 的對話。

This is Tom on for Oliver. In terms of quarter-to-date trends, just curious if you could characterize consumer behavior in January and February relative to prior months. And then in terms of inventory composition and the decision to keep promotions flat relative to last year, is it that you feel comfortable with the current quality of your inventory? Or how long do you think it'll take inventory levels to essentially normalize?

這是湯姆替奧利弗。就季度至今的趨勢而言，只是想知道您是否可以描述 1 月和 2 月相對於前幾個月的消費者行為。然後就庫存構成和促銷活動與去年持平的決定而言，您是否對當前的庫存質量感到滿意？或者您認為庫存水平需要多長時間才能基本恢復正常？

As it relates to the consumer, I think maybe stepping back a little bit to frame of Q1 is kind of what we saw in Q4. And I think we saw that consumer was holding back a little bit in the first half of the quarter and then leaning in more in the second half of the quarter. But at a time when it was much more promotionally intense and certainly buying more markdown products than we had seen in kind of seen or experienced in the past.

由於它與消費者有關，我認為我們在第四季度看到的情況可能會稍微回到第一季度的框架。而且我認為我們看到消費者在本季度的前半段有所退縮，然後在本季度的後半段更加傾斜。但在那個時候，促銷活動更加激烈，而且肯定會購買比我們過去看到或經歷過的更多的降價產品。

I think we saw that continue through January and into the early part of February. I think we've seen promotions slightly ease as we have gone through the quarter. I think we've kind of -- we still expect it to be quite promotional as we go through the year. And certainly, the first half, I feel there's still a lot of inventory out there. As it relates to our own inventory, I think we've made really nice progress on bringing down the inventory dollars as we've gone through the back half, so down $17 million at the end of the year versus June of last year. Year-over-year, we're up about 9% on inventory dollars, but we are down 2% on units.

我認為我們看到這種情況一直持續到 1 月和 2 月初。我認為我們已經看到促銷活動在本季度有所緩解。我認為我們有點 - 我們仍然希望它在我們度過這一年時能夠起到很大的促銷作用。當然，上半年，我覺得還有很多存貨。由於它與我們自己的庫存有關，我認為我們在下半年降低庫存美元方面取得了非常好的進展，與去年 6 月相比，今年年底減少了 1700 萬美元。與去年同期相比，我們的存貨美元增長了約 9%，但我們的單位下降了 2%。

And so I think just to see those units down year-over-year is nice progress. We'll continue to make progress on inventory as we go through the year and bring down the dollars on each quarter on a sequential basis. I think as we go through Q2, as we kind of finish Q2, I feel like we will be really in check with kind of a balanced inventory growth versus sales growth. And really for us, I suppose, stepping back from a philosophical perspective, we do want our inventory growth lower than our sales growth. And I think we should be back on that by Q2.

所以我認為只是看到這些單位同比下降是一個很好的進步。我們將在這一年中繼續在庫存方面取得進展，並按順序降低每個季度的美元。我認為當我們經歷第二季度時，當我們完成第二季度時，我覺得我們將真正控制庫存增長與銷售增長之間的平衡。我想，對於我們來說，從哲學的角度來看，我們確實希望我們的庫存增長低於我們的銷售增長。我認為我們應該在第二季度之前恢復。

And in terms of the CapEx outlook, could you provide some additional color on the nature of those investments? And then additionally, on the expense management side, what additional opportunities lie ahead this year?

就資本支出前景而言，您能否就這些投資的性質提供一些額外的顏色？此外，在費用管理方面，今年還有哪些機會？

Yes, on CapEx, it's really a combination of some maintenance capital, I would say, on the fleet of stores that we have, some spend in the fulfillment centers, continuing to bring in automation, just to make us more efficient as we kind of bring on more sales and more volume. And then obviously, a little bit of dollars in there for the new omni initiatives that we have in the back half of the year.

是的，在資本支出上，它實際上是一些維護資本的組合，我想說，在我們擁有的商店車隊上，一些在履行中心的支出，繼續引入自動化，只是為了讓我們更有效率，因為我們有點帶來更多的銷量和更多的銷量。然後很明顯，我們在今年下半年推出的新 omni 計劃中有一點美元。

From an expense area, yes, it's interesting. I was reflecting there -- we talked a lot on this earnings call about the omni initiatives and the progress we're making. I would say that there is the same level of work and intensity going across all areas of the business, right, whether that's product design and getting really great products, like quality for our customers and also on just cost saving initiatives across the different areas of the P&L, whether that's insight and fulfillment centers, optimizing shipping carriers, getting -- improving the balance of airfreight and sea in all areas of the business. We have those. I think they're all small initiatives but we all know kind of basis points add up pretty quickly. And we've seen -- you've seen nice bit of progress there even in the Q4 P&L, right, that our selling expenses are down versus Q3 in a time where you have more surcharges from carriers and those extra charges, I think, is kind of progress and kind of gives us confidence as we think about next year's P&L and the long-term model that we have in this business.

從費用方面來看，是的，這很有趣。我在那裡反思——我們在這次財報電話會議上談了很多關於全能計劃和我們正在取得的進展。我想說的是，在業務的所有領域都有相同水平的工作和強度，對吧，無論是產品設計還是獲得真正優秀的產品，比如為我們的客戶提供的質量，以及跨不同領域的成本節約計劃。損益表，無論是洞察力和履行中心，優化航運承運人，還是在所有業務領域改善空運和海運的平衡。我們有那些。我認為它們都是小舉措，但我們都知道某種基點加起來很快。而且我們已經看到 - 即使在第四季度的損益表中你也看到了不錯的進展，對，我們的銷售費用比第三季度有所下降，因為你有更多的承運人附加費和這些額外費用，我認為，當我們考慮明年的損益和我們在這項業務中擁有的長期模式時，這是一種進步，某種程度上給了我們信心。

Our next question comes from the line of Youssef Squali with Truist Securities.

我們的下一個問題來自 Youssef Squali 與 Truist Securities 的對話。

So maybe talk a little bit about the contribution to the P&L that Rebdolls had last year, maybe on the top and bottom lines. Just so that we can put in perspective as we look at your 2023 guide. And then on the balance sheet, how much cash do you need to continue to run the business? Is it fair to assume that with all the initiatives that you have going on, the Q4 kind of cash level is where you will trough, assuming inventory efficiency continues and CapEx goes down, et cetera. Just help us understand liquidity position and kind of how do you look at the strengthening of the balance sheet throughout the year?

因此，也許可以談談 Rebdolls 去年對損益表的貢獻，也許是在頂線和底線。只是為了讓我們在查看您的 2023 年指南時能夠正確看待。然後在資產負債表上，您需要多少現金才能繼續經營業務？假設隨著您正在進行的所有計劃，第四季度的現金水平將達到谷底，假設庫存效率繼續提高並且資本支出下降等等，這是否公平？只是幫助我們了解流動性狀況以及您如何看待全年資產負債表的加強？

On Rebdolls, first, so Rebdolls is doing about $10 million in revenue in net sales for us and kind of an immaterial amount of EBITDA with that. And so that's kind of as you think about FY '23, you can remove those numbers. From a balance sheet perspective and liquidity, I think we are very focused on strengthening the balance sheet, bringing down inventory and bringing down our leverage. And I think we've obviously got a couple of key levers on that. I think what we did in the back half of last year was a good insight rate of just $24 million from operating cash flow.

首先，在 Rebdolls 上，Rebdolls 為我們帶來了大約 1000 萬美元的淨銷售額，以及與此相關的 EBITDA。所以這有點像你對 FY '23 的看法，你可以刪除這些數字。從資產負債表和流動性的角度來看，我認為我們非常注重加強資產負債表、降低庫存和降低杠桿率。我認為我們顯然已經掌握了幾個關鍵槓桿。我認為我們在去年下半年所做的是從運營現金流中獲得僅 2400 萬美元的良好洞察力。

I think as we go through this year, we'll certainly have -- continue to make improvements to bring down our inventory dollars. You can see units are coming down faster than the dollars, but we will make sequential improvements in Q1 and continue that throughout the year. I think the other thing as we think about kind of when you kind of pencil us in against last year's cash flow, there were some one-off payments there from an accrued liabilities perspective, some final payment to Minimal, some final payments on IPO costs that we won't have those this year. So that will, again, improve working capital.

我認為在我們今年度過的過程中，我們肯定會 - 繼續進行改進以降低我們的庫存美元。你可以看到單位下降的速度快於美元，但我們將在第一季度進行連續改進，並在全年繼續這樣做。我認為我們考慮的另一件事是，當你將我們與去年的現金流進行比較時，從應計負債的角度來看，那裡有一些一次性付款，一些最終付款給 Minimal，一些最終付款 IPO 成本我們今年不會有那些。因此，這將再次改善營運資金。

And then just CapEx being down $10 million year-over-year is obviously a big benefit for us as well as we think about the cash flow for next year. And so look, I would say they are the main drivers and levers that we have, it's an area of focus for us with improving sales, improving EBITDA and improving cash flow is really how we're looking to run this business.

然後僅僅資本支出同比下降 1000 萬美元顯然對我們來說是一個很大的好處，我們也會考慮明年的現金流。所以看，我想說它們是我們擁有的主要驅動力和槓桿，這是我們關注的重點領域，提高銷售額、提高 EBITDA 和改善現金流是我們真正希望經營這項業務的方式。

I guess related to that, so as we try to get to a free cash flow number for 2023, is it as simple as looking at EBITDA, taking out the CapEx? And is that a good proxy? Or do you expect working capital to be in that negative for you guys?

我想與此相關，所以當我們試圖獲得 2023 年的自由現金流量數字時，它是否就像查看 EBITDA 一樣簡單，去掉資本支出？那是一個好的代理嗎？還是您希望營運資金對你們不利？

Good question. I think in Q1, there will be a little bit of negative on the working capital Youssef, and that's really just kind of timing of some of the Q4 payables, right? And I think the -- after that, we will be in positive operating cash flow generation each quarter.

好問題。我認為在第一季度，營運資金 Youssef 會有一些負面影響，這真的只是一些第四季度應付賬款的時間安排，對吧？我認為——在那之後，我們每個季度都會產生正的運營現金流。

(Operator Instructions) At this time, we're showing no additional questions. I will turn the floor back to Ciaran Long for closing remarks.

（操作員說明）此時，我們沒有顯示其他問題。我將把發言權轉回 Ciaran Long 的閉幕詞。

Yes. Thank you all for joining the call, and thank you for your best wishes for Jill, I know and she would love to be here. She's probably listening at home. I think -- yes, look, I think there's a lot of great stuff going on in this business. We've got 4 great brands, and they really have a lot of long-term runway ahead of them. And I think the initiatives that we have will certainly kind of continue -- will continue to build on them. And there's a lot of strength in these initiatives as we go through 2023 and look to '24 and beyond. And thanks, everybody.

是的。感謝大家加入電話會議，也感謝大家對吉爾的良好祝愿，我知道她很樂意來到這裡。她可能在家裡聽。我認為 - 是的，看，我認為這個行業正在發生很多偉大的事情。我們有 4 個偉大的品牌，他們確實有很多長期的跑道在他們面前。而且我認為我們的舉措肯定會繼續 - 將繼續以它們為基礎。隨著我們度過 2023 年並展望 24 歲及以後，這些舉措具有很大的優勢。謝謝大家。

This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。