AKA Brands Holding Corp (AKA) 2023 Q2 法說會逐字稿

Greetings, and welcome to a.k.a. Brands Holding Corp. Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Brands Holding Corp. 2023 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Emily Schwartz, Head of Investor Relations and Corporate Communications. Thank you, Ms. Schwartz. You may begin.

現在我很高興向大家介紹主持人艾米麗·施瓦茨 (Emily Schwartz)，她是投資者關係和企業傳播部主管。謝謝你，施瓦茨女士。你可以開始了。

Good afternoon. Thank you for joining a.k.a. Brands' second quarter 2023 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 is Ciaran Long, Interim Chief Executive Officer and Chief Financial Officer.

午安.感謝您參加 a.k.a. Brands 的 2023 年第二季度電話會議，討論今天下午發布的結果，該結果可以在我們的網站 ir.aka-brands.com 上找到。今天與我一起參加電話會議的是臨時執行長兼財務長 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.

在我們開始之前，我想提醒您公司的安全港語言。管理階層可能會做出前瞻性陳述，涉及未來事件的預期、預測和其他特徵，包括指導和基本假設。

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 forward-looking statements.

前瞻性陳述涉及風險和不確定性，可能導致實際結果與所表達的結果有重大差異。有關我們業務相關風險的進一步討論，請參閱我們向 SEC 提交的文件。請注意，我們不承擔更新任何前瞻性陳述的義務。

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 our earnings release furnished to the SEC and available on our website.

此次電話會議將包含非公認會計準則財務指標，例如調整後的 EBITDA 和調整後的 EBITDA 利潤率。這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節包含在我們向美國證券交易委員會提供的收益報告中，並可在我們的網站上取得。

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

這樣，我就把電話轉給 Ciaran。

Thanks, Emily. Good afternoon, everyone, and thanks for joining our call to discuss the second quarter. We continued to execute against our strategic initiatives and have made significant improvements in our operating efficiencies, which enabled us to deliver on our EBITDA and cash flow expectations for the quarter.

謝謝，艾米麗。大家下午好，感謝您加入我們討論第二季的電話會議。我們繼續執行我們的策略計劃，並顯著提高了我們的營運效率，這使我們能夠實現本季的 EBITDA 和現金流預期。

We also continued to strengthen our balance sheet by way of strategically reducing our inventory and paying down our debt. And importantly, we are increasing our addressable market, particularly in the U.S., by introducing our brand to new customers through our direct-to-consumer and omnichannel initiatives.

我們也透過策略性地減少庫存和償還債務來繼續強化我們的資產負債表。重要的是，我們正在透過直接面向消費者和全通路計畫向新客戶介紹我們的品牌，從而擴大我們的潛在市場，特別是在美國。

Net sales for the second quarter were $136 million. The U.S. delivered $80 million of net sales, which was in line with our expectations and represented a 12% increase on a 2-year basis. The U.S. continues to be our largest and most robust region, and we remain keenly focused on expanding our brand's presence and increasing awareness in this market, and we are very pleased with the ongoing progress.

第二季淨銷售額為 1.36 億美元。美國實現了 8,000 萬美元的淨銷售額，與我們的預期一致，比 2 年增長了 12%。美國仍然是我們最大、最強勁的地區，我們仍然熱衷於擴大我們的品牌影響力並提高在該市場的知名度，我們對持續取得的進展感到非常滿意。

The in-line performance in the U.S. was dampened by continued macro pressures and consumer challenges that we're facing in the Australia region. In addition to the macro environment, we have identified opportunities that we are aggressively addressing, which I'll provide further color on in a few minutes. Despite the softer than anticipated net sales in Australia, there are a lot of green shoots and highlights to take away from the quarter.

美國的表現受到持續的宏觀壓力和澳洲地區面臨的消費者挑戰的影響。除了宏觀環境之外，我們還發現了正在積極應對的機遇，我將在幾分鐘內提供進一步的說明。儘管澳洲的淨銷售額低於預期，但本季仍有許多新芽和亮點。

I'm very pleased that we delivered $5.6 million of adjusted EBITDA and $10 million in operating cash flow, in line with expectations. Importantly, despite our net sales declined from the second quarter last year, we were able to deliver the same level of EBITDA, which is a testament to the discipline and incredible work the teams have done to build structural efficiencies across our operating model while controlling expenses.

我很高興我們實現了 560 萬美元的調整後 EBITDA 和 1000 萬美元的營運現金流，符合預期。重要的是，儘管我們的淨銷售額較去年第二季度有所下降，但我們仍能夠實現相同水平的EBITDA，這證明了團隊在控制費用的同時在我們的營運模式中建立結構效率方面所做的紀律和令人難以置信的工作。

As I mentioned, we continue to strategically reduce our inventory, which is down 26% year-over-year and down 16% from the year-end of 2022. We also further reduced our debt with a $12.5 million payment in the second quarter or a 16% reduction from the end of 2022. And we're incredibly pleased with our omnichannel initiatives as we're attracting new customers and creating buzz around our brands, particularly in the U.S.

正如我所提到的，我們繼續策略性地減少庫存，庫存年減26%，與2022 年底相比下降16%。我們也進一步減少了債務，在第二季或第二季支付了1,250 萬美元。與 2022 年底相比減少 16%。我們對全通路計劃感到非常滿意，因為我們正在吸引新客戶並圍繞我們的品牌引起轟動，尤其是在美國。

As we move through the back half of the year, we have 3 key priorities: First, we will continue to chase demand and build brand awareness through increasing fashion newness, attracting new customers through our next-generation marketing tactics and expanding our omnichannel initiatives. Second, we will continue to improve our operations by driving greater efficiencies and bringing inventory down further. And third, we will continue to strengthen our balance sheet by paying down additional debt through the remainder of the year.

下半年，我們有三個關鍵優先事項：首先，我們將透過增加時尚新穎性、透過下一代行銷策略吸引新客戶以及擴大全通路計畫來繼續追逐需求並建立品牌知名度。其次，我們將透過提高效率和進一步降低庫存來繼續改善我們的營運。第三，我們將透過在今年剩餘時間內償還額外債務來繼續強化我們的資產負債表。

I'm very proud of the team's focus and execution across our initiatives, and I want to thank them for their continued commitment and drive. Now I'll share a few highlights from our brands, and then I will walk you through the financials. Starting with our women's brands. Princess Polly remains our largest brand and continues to appeal to customers with on-trend fashion and next-generation marketing activations.

我對團隊在我們的計劃中的專注和執行感到非常自豪，我要感謝他們的持續承諾和推動。現在我將分享我們品牌的一些亮點，然後我將向您介紹財務狀況。從我們的女裝品牌開始。波莉公主仍然是我們最大的品牌，並繼續透過流行時尚和下一代行銷活動來吸引客戶。

As mentioned last quarter, we are refining our marketing spend and increasing fashion newness across our brands. These efforts are aimed at both attracting new customers and fostering loyalty among existing customers. Given the fast and efficient test and reorder merchandising approach, Princess Polly released 100 new styles per week in the second quarter and saw a very strong sell-through rate, particularly in dresses.

正如上季度所提到的，我們正在優化行銷支出並增加我們品牌的時尚新穎性。這些努力旨在吸引新客戶並培養現有客戶的忠誠度。鑑於快速高效的測試和重新訂購銷售方式，波莉公主在第二季度每週發布 100 種新款式，並且銷售率非常高，尤其是連身裙。

They launched their Princess Polly branded merchandise in the beginning of the year, which supports strong brand affinity and loyalty. Based on the success and positive customer reception, they will be expanding this collection and will release 20 new logo-branded styles in the back half of the year.

他們在今年年初推出了波莉公主品牌商品，這支持了強大的品牌親和力和忠誠度。基於成功和積極的客戶反響，他們將擴大該系列，並在今年下半年推出 20 種帶有徽標的新款式。

On the marketing front, as we approach the fall, Princess Polly targets its merchandise drops and marketing events to coincide with key moments for their customers, back-to-school, sorority rush and homecoming. Based on the success of the spring break and summer Jeep tours, they're launching a Jeep tour in college campuses across California to meet customers face-to-face and build relationships.

在行銷方面，隨著秋天的臨近，波莉公主的商品投放和行銷活動的目標是與顧客的關鍵時刻、返校、聯誼會高峰和返校節相吻合。基於春假和夏季吉普車之旅的成功，他們將在加州各地的大學校園推出吉普車之旅，與客戶面對面交流並建立關係。

As next-generation marketing experts, Princess Polly remains laser-focused on reaching their customers across multiple platforms, and they continue to grow their TikTok presence and fine-tune the efficiency. Based on successful community engagement to customer content on TikTok and refreshed organic and paid strategies, they increased their reach and TikTok views by over 300% sequentially compared to the first quarter.

作為下一代行銷專家，波莉公主仍然專注於跨多個平台接觸客戶，他們繼續擴大 TikTok 業務並調整效率。基於 TikTok 上客戶內容的成功社群參與以及更新的自然和付費策略，與第一季相比，他們的覆蓋範圍和 TikTok 瀏覽量連續增加了 300% 以上。

Equally as exciting as Princess Polly's direct-to-consumer initiatives is the success of their omnichannel initiatives. I'm excited to announce that Princess Polly and PacSun have expanded their wholesale relationship and beginning tomorrow, Princess Polly will go live in 100 PacSun stores across the U.S., up from 15 stores in the initial test.

與波莉公主的直接面向消費者的舉措同樣令人興奮的是他們的全通路舉措的成功。我很高興地宣布，波莉公主和 PacSun 擴大了批發關係，從明天開始，波莉公主將在美國各地的 100 家 PacSun 商店上線，而最初測試時只有 15 家商店。

The early success with the PacSun partnership gives us great confidence in Princess Polly's ability to expand its market reach and significantly grow the business over time in both the U.S. and internationally. We're also looking forward to the opening of Princess Polly's first store in the Century City Mall in Los Angeles next month.

PacSun 合作夥伴關係的早期成功讓我們對波莉公主擴大市場覆蓋範圍並隨著時間的推移在美國和國際上顯著發展業務的能力充滿信心。我們也期待波莉公主的第一家商店下個月在洛杉磯世紀城購物中心開幕。

As a reminder, we believe this location is the perfect strategic fit for Princess Polly's first store given the high volume of Gen Z and Millennium shoppers in the open air mall daily. We continue to evaluate more retail locations for Princess Polly, and we'll use the learnings from the Century City store to develop our plans for future stores.

謹此提醒，鑑於露天購物中心每天都有大量 Z 世代和千禧世代購物者，我們相信這個地點是波莉公主第一家商店的完美戰略選擇。我們將繼續評估波莉公主的更多零售地點，並將利用從世紀城商店獲得的經驗來製定未來商店的計劃。

Petal & Pup is also making impressive progress on both their direct-to-consumer initiatives and their omnichannel tests. They launched 26% more new styles in the second quarter versus the first quarter and continued to see strong sell-through in their newness. Similar to Princess Poly and additional to their social media and brand marketing, Petal & Pup is also using events and sponsorships to reach new and existing customers, sales for in-person events in the second quarter, engaging both influencers and customers and building broader awareness, including a large-scale activation at the Country Music Awards Festival in Nashville in June.

Petal & Pup 在直接面向消費者的計畫和全通路測試方面也取得了令人矚目的進展。與第一季相比，他們在第二季推出的新款數量增加了 26%，新品的銷售量持續強勁。與Princess Poly 類似，除了社交媒體和品牌行銷之外，Petal & Pup 還利用活動和贊助來吸引新客戶和現有客戶，並在第二季度進行現場活動銷售，吸引有影響力的人和客戶，並建立更廣泛的認知度，包括六月在納許維爾舉行的鄉村音樂頒獎典禮上的大規模活動。

We're also excited that as Petal & Pup continues to gain traction in the U.S., they are launching their first influencer capsule collection designed and curated by Nena Evans, a popular U.S.-based content creator in August. Petal & Pup's omnichannel initiatives are also exceeding our expectations. As announced last quarter, the brand is currently live and performing well on Target marketplace, demonstrating the demand for Petal & Pup is strong.

我們也很高興看到，隨著 Petal & Pup 在美國繼續受到關注，他們將於 8 月推出由美國熱門內容創作者 Nena Evans 設計和策劃的首個影響者膠囊系列。 Petal & Pup 的全通路舉措也超出了我們的預期。正如上季宣布的那樣，該品牌目前在 Target 市場上上線並表現良好，這表明 Petal & Pup 的需求強勁。

We continue to pursue opportunities to attract new customers to the brand and boost awareness through marketplaces and select wholesale engagements. We're very encouraged by Petal & Pup's initial success with marketplaces and we're leveraging the learnings to inform marketplace tests across the other brands in our portfolio.

我們繼續尋找機會吸引新客戶，並透過市場和選擇批發活動提高品牌知名度。 Petal & Pup 在市場上的初步成功讓我們深受鼓舞，我們正在利用這些經驗教訓為我們產品組合中其他品牌的市場測試提供資訊。

Shifting to our streetwear brands. We remain pleased with the momentum that Culture Kings is gaining in the U.S. where it continues to disrupt the U.S. streetwear industry. The Las Vegas store is performing ahead of our expectations, and we are equally pleased with the positive impact it has had on our online sales.

轉向我們的街頭服飾品牌。我們對 Culture Kings 在美國的勢頭感到高興，它繼續擾亂美國街頭服飾行業。拉斯維加斯商店的表現超出了我們的預期，我們對它對我們在線銷售的積極影響同樣感到高興。

Culture Kings embodies the collision of music, fashion and culture, and they're bringing this to life in the U.S. through unique marketing activations, partnerships and their signature retail ethos in stores. The second quarter is a great testament to the power of the Culture Kings brand beyond just the in-store events.

Culture Kings 體現了音樂、時尚和文化的碰撞，他們透過獨特的行銷活動、合作夥伴關係及其標誌性的商店零售精神在美國將其變為現實。第二季充分證明了文化之王品牌的力量不僅限於店內活動。

As momentum builds, Culture Kings began marching across the U.S. with their first partnership beyond the West Coast with the Lyrical Lemonade Summer Smash Music Festival in Chicago in June. As sponsors of an official stage, they curated an exclusive merchandising collection and the iconic Culture Kings basketball court activation, further enhancing their impact and presence at the event.

隨著勢頭的增強，Culture Kings 開始在美國各地進軍，並於 6 月在芝加哥舉行了 Lyrical Lemonade Summer Smash 音樂節，這是他們在西海岸以外的首次合作。作為官方舞台的贊助商，他們策劃了獨家商品系列和標誌性的文化之王籃球場活動，進一步增強了他們在活動中的影響力和存在感。

Additionally, based on the success of the Rolling Loud sponsorship in L.A. earlier in the year, they expanded the partnership and were named the official streetwear brand for the Rolling Loud Music Festival in Miami in July. Culture Kings sponsored a branded stage and full-sized basketball court, which was open to the more than 250,000 festival goers over the event. The brand also designed an exclusive Rolling Loud capsule collection, which was available to shop at a pop-up store on festival grounds and on the Culture Kings website.

此外，基於今年早些時候對洛杉磯 Rolling Loud 贊助的成功，他們擴大了合作夥伴關係，並於 7 月被任命為邁阿密 Rolling Loud 音樂節的官方街頭服飾品牌。 Culture Kings 贊助了一個品牌舞台和全尺寸籃球場，向超過 250,000 名節日觀眾開放。該品牌還設計了獨家 Rolling Loud 膠囊系列，可在節日場地的快閃店和 Culture Kings 網站上購買。

In the second quarter, Culture Kings also deepened their sports partnerships and furthered their collaboration with UFC. Culture Kings showcased and was the top selling boot at UFC X, a fully immersive UFC fan experience in Las Vegas during International fight week in June. Their merchandise sold out in a few hours and the team quickly leveraged our in-house design and print facility to print overnight more inventory, showcasing both the incredible demand for Culture Kings as well as the brand's flexibility and speed to chase and replenish in under 24 hours.

第二季度，Culture Kings也深化了體育合作夥伴關係，進一步深化了與UFC的合作。 Culture Kings 在 UFC X 上展示並成為最暢銷的戰靴，UFC X 是 6 月國際拳擊週期間在拉斯維加斯舉辦的完全身臨其境的 UFC 粉絲體驗。他們的商品在幾個小時內就售罄，團隊迅速利用我們的內部設計和印刷設施連夜印刷更多庫存，展示了對Culture Kings 的難以置信的需求以及該品牌在24 小時內追逐和補貨的靈活性和速度小時。

The Las Vegas flagship is an incredible marketing machine where the brand can host exciting one-of-a-kind events and activations. In the second quarter, popular mixed marshall arts fighters, Charles Oliveira and Chito Vera, held the most attended in-store event to date, featuring a 22-foot MMA flight page with over 1,000 fans showing up for the in-store event.

拉斯維加斯旗艦店是一台令人難以置信的行銷機器，品牌可以在這裡舉辦令人興奮的獨一無二的活動和活動。第二季度，受歡迎的混合馬歇爾藝術拳擊手查爾斯·奧利維拉(Charles Oliveira) 和奇托·維拉(Chito Vera) 舉辦了迄今為止參與人數最多的店內活動，其特色是22 英尺的MMA飛行頁面，有超過1,000 名粉絲參加了店內活動。

Additionally, as Culture Kings deepened its relationship in sports in the U.S., they collaborated with New Era and WNBA stars, Arike Ogunbowale, DiJonai Carrington, who hosted a live shopping and Q&A event in the store during the All-Star weekend.

此外，隨著 Culture Kings 在美國加深與體育界的關係，他們與 New Era 和 WNBA 球星 Arike Ogunbowale、DiJonai Carrington 合作，後者在全明星週末期間在店內舉辦了現場購物和問答活動。

On the print and licensing side, Culture Kings extended its collaboration with Greenville, with an exclusive collaboration and an in-store event with J.I.D. and Hip hop duo EarthGang. And we're excited for the upcoming licensed merchandise colabs with fan favorite and 90s revival Pokemon and Looney Tunes.

在印刷和授權方面，Culture Kings 擴大了與格林維爾的合作，與 J.I.D. 進行了獨家合作並舉辦了店內活動。和嘻哈二人組 EarthGang。我們很高興即將推出與粉絲喜愛的 90 年代復興版 Pokemon 和 Looney Tunes 合作的授權商品。

We remain pleased with the performance of Culture Kings' in-house brands, which come at higher gross margins, including MNML, which remains the top 10 brand at Culture Kings' online and in-store. We also continued to be encouraged that Culture Kings is bringing new customers to MNML and integrating MNML products into Culture Kings' marketing and activations.

我們對 Culture Kings 自有品牌的表現仍然感到滿意，這些品牌的毛利率較高，其中包括 MNML，它仍然是 Culture Kings 在線和店內的十大品牌。我們也繼續感到鼓舞的是，Culture Kings 正在為 MNML 帶來新客戶，並將 MNML 產品整合到 Culture Kings 的行銷和活動中。

In the second quarter, MNML launched a gifting strategy for the WNBA and Las Vegas Player, Aisha Sheppard, Received her WNBA championship ring in full MNML outfit, and over 20 WNBA players have been spotted wearing MNML across social media since.

第二季度，MNML 推出了針對WNBA 的禮物策略，拉斯維加斯球員艾莎·謝潑德(Aisha Sheppard) 穿著全套MNML 服裝收到了她的WNBA 總冠軍戒指，此後社交媒體上發現有超過20名WNBA 球員穿著MNML。

Before I provide more detail on the P&L, I want to give you more color on our 3 regions. As I mentioned, the U.S. continues to be our strongest region and will be the most significant driver of growth. In the first half of the year, the U.S. accounted for 59% of total revenues, up from 52% from the comparable period last year, and the region continues to be an increasingly more important part of our portfolio growth and profitability.

在提供有關損益表的更多詳細資訊之前，我想先向您介紹我們的 3 個區域。正如我所提到的，美國仍然是我們最強大的地區，並將成為最重要的成長動力。今年上半年，美國市場佔總收入的 59%，高於去年同期的 52%，該地區繼續成為我們投資組合成長和獲利能力中越來越重要的部分。

Second quarter net sales in the U.S. were $80 million, which was down 3% compared to last year, but up 12% on a 2-year stack. Beginning this quarter and going forward, we're slightly adjusting our financial reporting structure to include New Zealand in the Australia region, given the proximity and interconnectedness of the 2 countries. You can now find historical financial information for the updated region in our filing.

美國第二季淨銷售額為 8,000 萬美元，比去年下降 3%，但與 2 年相比成長 12%。從本季開始以及今後，我們將稍微調整我們的財務報告結構，將紐西蘭納入澳洲地區，因為這兩個國家毗鄰且相互關聯。現在您可以在我們的文件中找到更新後地區的歷史財務資訊。

In the Australia region, net sales for the second quarter were $48 million, down 28% compared to last year and down 24% on a constant currency basis. In the first half of the year, the Australia region accounted for 35% of total company revenues down from 42% in the first half of 2022.

在澳洲地區，第二季淨銷售額為 4,800 萬美元，比去年下降 28%，以固定匯率計算下降 24%。今年上半年，澳洲地區占公司總收入的35%，低於2022年上半年的42%。

Similar to the U.S., the Australian consumer has been challenged post pandemic. However, the environment there has remained more challenging than we anticipated. They've had 12 interest rate increases over the last 12 months, which is particularly impactful as the majority of the country have variable rate mortgages, leading to increased consumer pressure as we've gone through 2023.

與美國類似，澳洲消費者在疫情後也面臨挑戰。然而，那裡的環境仍然比我們預期的更具挑戰性。他們在過去 12 個月裡進行了 12 次升息，這尤其具有影響力，因為該國大多數地區都有浮動利率抵押貸款，導致 2023 年消費者壓力增加。

In addition to the macro challenges, we have also identified areas of opportunities across our brands in the region. Our teams are keenly aligned with our philosophy to manage inventories below our forward demand expectations. We are building further operational efficiencies, and we're honing in on demand creation initiatives.

除了宏觀挑戰之外，我們還發現了我們品牌在該地區的機會領域。我們的團隊與我們的理念非常一致，即管理庫存低於我們的遠期需求預期。我們正在進一步提高營運效率，並致力於按需創建計劃。

We have completed holistic SKU streamline initiatives to focus on faster selling SKUs, which will improve overall operating effectiveness and allow for stronger and fresher merchandise season after season. Importantly, Culture Kings is also adding productive third-party footwear brands such as SALOMON and Clarks.

我們已經完成了整體 SKU 精簡計劃，專注於更快銷售的 SKU，這將提高整體營運效率，並逐季提供更強大、更新鮮的商品。重要的是，Culture Kings 還增加了 SALOMON 和 Clarks 等高效的第三方鞋類品牌。

While we feel good about the quality and quantity of our women's brands inventory as we head into their strong spring and summer seasons. We're also evaluating partnerships with select off-price retailers in Australia to move through aged inventory faster while remaining focused on our newness and overall profitability.

隨著春夏季節的到來，我們對女裝品牌庫存的品質和數量感到滿意。我們也正在評估與澳洲精選折扣零售商的合作夥伴關係，以更快地處理陳舊庫存，同時繼續關注我們的新穎性和整體獲利能力。

While we anticipate that the consumer will remain challenged for the remainder of 2023 and into 2024, we're confident that these actions will benefit the Australia region over the longer term, while enabling us to manage the business appropriately in the current demand environment.

雖然我們預計消費者在 2023 年剩餘時間和 2024 年仍將面臨挑戰，但我們相信，從長遠來看，這些行動將使澳洲地區受益，同時使我們能夠在當前的需求環境中適當管理業務。

The rest of the world delivered $8 million in net sales, which was down 12% from the second quarter in the prior year. As our focus is on the U.S. in the short term, our strategic decisions to shift marketing dollars from the U.K. and Europe in the third quarter of last year continues to impact trends in these regions.

世界其他地區的淨銷售額為 800 萬美元，比去年第二季下降 12%。由於我們短期內的重點是美國，因此我們去年第三季將行銷資金從英國和歐洲轉移的策略決策將繼續影響這些地區的趨勢。

Now I'll give you more detail on the P&L before taking your questions. For the second quarter, net sales were $136 million, a decline of 14% compared to the second quarter last year. On a constant currency basis, net sales were down 11% compared to last year.

現在，在回答您的問題之前，我將向您提供有關損益表的更多詳細資訊。第二季淨銷售額為1.36億美元，比去年第二季下降14%。以固定匯率計算，淨銷售額比去年下降 11%。

Total orders for the second quarter were $1.7 million or flat on a 2-year stack and down 11% to last year. Order volume was impacted by overall lower demand in the Australia region, and lower conversion across regions. As we ramped up marketing efforts and the flow of newness normalized, we saw improvements in traffic. However, conversion rates continued to lag prior year trends as customers remain somewhat more selective in their purchasing behavior.

第二季訂單總額為 170 萬美元，與 2 年持平，比去年下降 11%。訂單量受到澳洲地區整體需求下降以及各地區轉換率下降的影響。隨著我們加強行銷力度以及新事物的流動正常化，我們看到流量有所改善。然而，由於客戶在購買行為上仍然更具選擇性，因此轉換率繼續落後於去年的趨勢。

We serve 3.6 million active customers on a trailing 12-month basis, which is flat sequentially to the first quarter of 2023. Average order value of $82 decreased 4% compared to the second quarter last year on a reported basis and was flat in constant currency. Our return rate for the second quarter was 20.5%, which remains one of the lowest among our peers.

我們過去 12 個月為 360 萬活躍客戶提供服務，與 2023 年第一季持平。根據報告，平均訂單價值為 82 美元，與去年第二季相比下降 4%，以固定匯率計算持平。我們第二季的回報率為 20.5%，仍然是同業中最低的。

Moving to profitability. Gross margin in the second quarter was 56.9% compared to 55.2% in the same period last year or up 170 basis points, above our expectations of roughly flat to last year. This gross margin upside was driven by improved full price sell-through due to the increased newness, particularly in the U.S., and lower freight expenses.

轉向盈利。第二季毛利率為56.9%，較去年同期的55.2%上升170個基點，高於我們與去年大致持平的預期。毛利率的上升是由於新產品的增加（特別是在美國）以及運費的降低導致全價銷售量的增加。

The teams have been hard at work improving our operational efficiencies over the last 12 months, and I'm very pleased with the incredible progress we've made. Selling expenses declined 21% to $36 million compared to $45 million in the second quarter of 2022. Selling expenses were 26.4% of net sales and leveraged 220 basis points compared to the second quarter last year. I'm really proud of the incredible work the team has done on shipping carrier optimization finding labor efficiencies and improving our cost throughout the supply chain.

在過去 12 個月裡，團隊一直在努力提高我們的營運效率，我對我們所取得的令人難以置信的進展感到非常滿意。與2022 年第二季的4,500 萬美元相比，銷售費用下降了21%，至3,600 萬美元。與去年第二季相比，銷售費用佔淨銷售額的26.4%，槓桿率提高了220 個基點。我對團隊在運輸承運人優化、提高勞動力效率和改善整個供應鏈成本方面所做的令人難以置信的工作感到非常自豪。

Marketing expenses in the quarter were $18.4 million compared to $19.1 million in the second quarter of 2022. On a rate basis, marketing expenses were 13.5% of net sales compared to 12% of net sales in the second quarter of 2022, driven by lower effectiveness in the Australia region. Throughout the second quarter, we continued to ramp up our marketing investments in line with the increased newness in the assortment to drive top line improvements across brands.

本季行銷費用為1,840 萬美元，而2022 年第二季為1,910 萬美元。以費率計算，行銷費用佔淨銷售額的13.5%，而2022 年第二季行銷費用佔淨銷售額的12% ，原因是效率較低在澳洲地區。在整個第二季度，我們根據產品種類的新穎性不斷增加，並持續增加行銷投資，以推動各品牌的營收改善。

General and administrative expenses declined by 6% to $24.2 million in the compared to $25.7 million in the second quarter of 2022. On a rate basis, G&A expenses were 17.8% of net sales compared to 16.2% of net sales in the second quarter of 2022. The change on rate basis was primarily driven by lower sales volume compared to the prior year.

一般及行政費用下降6%，至2,420 萬美元，而2022 年第二季為2,570 萬美元。以費率計算，一般及行政費用佔淨銷售額的17.8%，而2022 年第二季佔淨銷售額的16.2% . 費率變動主要是因為銷量與上年相比有所下降。

It is important to note that our expense base is largely fixed, and improvement in sales will require nominal incremental G&A expenses, supporting opportunities to leverage this line in the future. Adjusted EBITDA was $5.6 million, in line with our guidance despite slightly lower-than-expected net sales. This compares to $5.9 million in the second quarter last year.

值得注意的是，我們的費用基礎基本上是固定的，銷售的改善將需要名義上增量的一般管理費用，以支持未來利用這條線的機會。儘管淨銷售額略低於預期，但調整後 EBITDA 為 560 萬美元，符合我們的指引。相比之下，去年第二季為 590 萬美元。

Adjusted EBITDA margin for the second quarter of 2023 expanded to 4.1% compared to 3.7% in the same period last year. Net loss was $5 million or $0.04 per share in the second quarter of 2023 compared to net loss of $4.2 million or $0.03 per share in the same period last year.

2023 年第二季調整後 EBITDA 利潤率擴大至 4.1%，去年同期為 3.7%。 2023 年第二季淨虧損為 500 萬美元，即每股 0.04 美元，而去年同期淨虧損為 420 萬美元，即每股 0.03 美元。

Turning to the balance sheet. I want to reiterate that strengthening our balance sheet is a top priority for us, and I'm very proud of the actions we took over the last few quarters to lower debt levels and improve inventory levels and working capital. We ended the quarter with $26 million in cash and cash equivalents and $120 million in debt.

轉向資產負債表。我想重申，加強資產負債表是我們的首要任務，我對過去幾季我們為降低債務水準、改善庫存水準和營運資本而採取的行動感到非常自豪。本季結束時，我們的現金和現金等價物為 2,600 萬美元，債務為 1.2 億美元。

At the end of the second quarter, we had total liquidity of approximately $57 million. In the quarter, we continued to make additional debt repayments, bringing our total debt paydown to $24 million year-to-date. Additionally, in June, our Board of Directors authorized a share repurchase program to repurchase up to $2 million of shares of the company's common stock.

截至第二季末，我們的流動資金總額約為 5,700 萬美元。本季度，我們繼續償還額外債務，使年初至今的債務償還總額達到 2,400 萬美元。此外，6 月份，我們的董事會批准了一項股票回購計劃，回購最多 200 萬美元的公司普通股。

In the second quarter, we repurchased 673,000 shares for a total cost of approximately $300,000. As mentioned, I'm really pleased with our inventory levels, which at the end of the quarter totaled $106 million compared to $144 million at the end of the second quarter of 2022. Total inventory dollars were down 26% and units were down 22% compared to last year.

第二季度，我們回購了 673,000 股股票，總成本約為 30 萬美元。如前所述，我對我們的庫存水準感到非常滿意，本季末的庫存水準總計1.06 億美元，而2022 年第二季末的庫存水準為1.44 億美元。庫存總額下降了26%，庫存數量下降了22%與去年相比。

We feel confident in the overall composition, newness and quality of our inventory and expect to see continued decline in inventory dollars and units in fiscal 2023 on a constant currency basis. Going forward, we expect to run the business with inventory growth below sales growth, and I'm encouraged that we returned to this dynamic in the quarter.

我們對庫存的整體組成、新穎性和品質充滿信心，並預計 2023 財年按固定匯率計算的庫存美元和單位將繼續下降。展望未來，我們預計庫存成長低於銷售成長來經營業務，令我感到鼓舞的是，我們在本季度恢復了這種動態。

Along with maintaining a healthy balance sheet, generating strong cash flows is another key priority for us. In the second quarter, we generated $10.3 million of operating cash, which compared to cash used of $8.7 million in the second quarter of 2022. This $19 million year-over-year increase in operating cash flow was primarily driven by positive EBITDA and inventory improvements.

除了保持健康的資產負債表之外，產生強勁的現金流是我們的另一個關鍵優先事項。第二季度，我們產生了 1,030 萬美元的營運現金，而 2022 年第二季度使用的現金為 870 萬美元。營運現金流年增 1,900 萬美元，主要是由正 EBITDA 和庫存改善推動的。

In the quarter, we generated free cash flow of $8.5 million. As we look at the remainder of 2023 and beyond, we're excited by our brand's strategic initiatives and the channel expansion opportunities to drive heightened brand awareness. However, based on the trends we're seeing with the consumer, primarily the continued pressure on the consumer in the Australia region, we're lowering our back half expectations to reflect the current environment.

本季度，我們產生了 850 萬美元的自由現金流。展望 2023 年剩餘時間及以後，我們對我們品牌的策略性舉措和提高品牌知名度的通路擴張機會感到興奮。然而，根據我們看到的消費者趨勢，主要是澳洲地區消費者面臨的持續壓力，我們降低了後半部的預期，以反映當前的環境。

We now expect to deliver between $555 million and $565 million in net sales and between $21 million and $25 million of EBITDA for the year. For the third quarter, we expect to deliver net sales of between $138 million and $143 million, and adjusted EBITDA in the range of $6 million to $8 million.

我們現在預計今年的淨銷售額將在 5.55 億美元至 5.65 億美元之間，EBITDA 將在 2,100 萬美元至 2,500 萬美元之間。我們預計第三季的淨銷售額將在 1.38 億美元至 1.43 億美元之間，調整後的 EBITDA 將在 600 萬美元至 800 萬美元之間。

To give more color in the middle of the P&L, we expect gross margin, selling expenses and marketing rates in the third quarter to be similar to the rates in the second quarter of this year. Before I take your questions, I want to let you know that Jill continues to work through her medical issues, but she's doing well and appreciate everyone's regards.

為了讓損益表更加生動，我們預計第三季的毛利率、銷售費用和行銷率將與今年第二季的水平相似。在回答您的問題之前，我想讓您知道吉爾仍在繼續解決她的醫療問題，但她狀況良好，感謝大家的問候。

Our priorities for the remainder of the year are clear. We are creating demand opportunities and reaching new customers through our direct-to-consumer growth initiatives and omnichannel expansion plans. We're diligently focused on improving and finding even more operating efficiencies by reducing our inventory and managing our expenses. And we're taking the necessary steps to strengthen our balance sheet and pay down even more debt.

我們今年剩餘時間的優先事項很明確。我們正在透過直接面向消費者的成長計劃和全通路擴張計劃創造需求機會並吸引新客戶。我們致力於透過減少庫存和管理費用來提高和提高營運效率。我們正在採取必要措施來加強我們的資產負債表並償還更多債務。

We remain confident in the future of our brands and the long-term potential and are committed to driving shareholder value through delivering both growth and profit.

我們對品牌的未來和長期潛力仍然充滿信心，並致力於透過實現成長和利潤來推動股東價值。

Now we'll open it up for questions.

現在我們將開放提問。

(Operator Instructions) First question comes from the line of Oliver Chen with TD Cowen.

（操作員說明）第一個問題來自 Oliver Chen 和 TD Cowen 的線。

Regarding inventory, how would you contrast the inventory relative to sales as you think about Australia versus the U.S.? And as we think about the Australia as well, what factors could be within your control? It sounds like it's a dynamic cautious environment.

關於庫存，當您考慮澳洲和美國時，您如何對比庫存與銷售額的關係？當我們考慮澳洲時，哪些因素是您可以控制的？聽起來這是一個動態謹慎的環境。

And then second question on the gross margins. You had impressive full price selling, although we're in a pretty mixed consumer environment. Could you elaborate on how you achieve that? And what does the guidance assume going forward in terms of full price selling and promotion?

然後是關於毛利率的第二個問題。儘管我們處於一個相當複雜的消費環境中，但你們的全價銷售令人印象深刻。您能詳細說明一下您是如何實現這一目標的嗎？該指南對全價銷售和促銷有何假設？

Thanks, Oliver. Yes, I think it's really good to see the progress we've made on inventory. It was certainly something we've been very focused on. We're down $37 million since Q2 last year. And I think, look, that's going to be a continued focus for us as we go through the back half of the year. We do want to see inventory dollars come down sequentially.

謝謝，奧利佛。是的，我認為很高興看到我們在庫存方面取得的進展。這當然是我們一直非常關注的事情。自去年第二季以來，我們減少了 3700 萬美元。我認為，看，這將是我們今年下半年持續關注的焦點。我們確實希望看到庫存金額依次下降。

I think as we think about the composition of the inventory, I think overall, we feel good about it. We feel good about the quantity of the inventory that we have. I think in Australia, I think the women's brands are fully on test and repeat, and with that, able to adjust inventory really quickly. Culture Kings isn't there. And we still have work to do to get them on test and repeat.

我認為，當我們考慮庫存的組成時，我認為總體而言，我們對此感覺良好。我們對我們擁有的庫存數量感到滿意。我認為在澳大利亞，女裝品牌已經完全經過測試和重複，因此能夠非常快速地調整庫存。文化之王不在那裡。我們仍然有工作要做，讓它們進行測試和重複。

I think because of that, we're seeing that their inventory and the newness isn't there like we have with the other brands. That is impacting their comps. And I think we're seeing that -- we're seeing that even more so for Culture Kings in Australia, where the comps there aren't as good as the brands that are fully on test and repeat.

我認為正因為如此，我們看到他們的庫存和新穎性並不像我們其他品牌那樣。這正在影響他們的比賽。我認為我們已經看到了這一點——對於澳洲的文化之王來說更是如此，那裡的競爭不如經過充分測試和重複的品牌。

I think, look, we are aggressively taking actions in Australia as we think about the -- as we look to the peer set there. We also see them negative comping, but we expect to be doing better. And so there's a lot that we're doing on newness in product, but also just operational efficiencies that we want to make. We are removing on productive SKUs. We expect that to help with gross margins, marketing productivity, and just actions really across all the brands and all of the areas.

我認為，當我們考慮到那裡的同行時，我們正在澳大利亞積極採取行動。我們也看到他們的負面競爭，但我們希望做得更好。因此，我們在產品創新方面做了很多工作，但我們也希望提高營運效率。我們正在刪除生產性 SKU。我們希望這有助於提高毛利率、行銷效率以及所有品牌和所有領域的公正行動。

Then as it relates to gross margins, yes, it's great to see gross margins up nearly 170 basis points year-over-year. And I think really that is a testament to the test and repeat model that we have now fully implemented at 3 of the brands and bringing newness -- well, kind of, that newness has allowed us to be better at full-price selling. We do see the customers really reacting positively to that newness.

然後，就毛利率而言，是的，很高興看到毛利率年增近 170 個基點。我認為這確實證明了我們現在已經在三個品牌中全面實施的測試和重複模式，並帶來了新鮮感——嗯，某種程度上，這種新鮮感讓我們能夠更好地進行全價銷售。我們確實看到客戶對這種新鮮事物做出了積極的反應。

As it relates to the back half of the year, we expect that we will be similar gross margins in Q3 to where we were in Q2. In Q4, we would expect them to be seasonally lower as we've kind of seen for the last number of years. We expect it to be more promotional in Q4. And for us, that's all contemplated in our guidance.

由於與今年下半年有關，我們預計第三季的毛利率將與第二季相似。在第四季度，我們預計它們會季節性下降，正如我們過去幾年所看到的那樣。我們預計第四季會有更多促銷活動。對我們來說，這一切都在我們的指導中被考慮。

Next question comes from the line of Edward Yruma with Piper Sandler.

下一個問題來自愛德華·尤魯瑪 (Edward Yruma) 和派珀·桑德勒 (Piper Sandler) 的關係。

I guess just first to follow up on Oliver's question. Given the trends in Australia, are you able to kind of shift inventory around or at least some of the orders and buys and put them in the U.S. versus Australia?

我想首先要跟進奧利佛的問題。鑑於澳洲的趨勢，您是否能夠將庫存或至少部分訂單和採購轉移到美國而不是澳洲？

And then a broader question. You guys mentioned a litany of alternative distribution model test, right, the marketplace at Target, stores and some select wholesale. I guess kind of what's the biggest needle mover in the medium term? And what could the potential impact to the P&L be?

然後是一個更廣泛的問題。你們提到了一系列替代分銷模式測試，對吧，塔吉特的市場、商店和一些精選批發。我想中期來看最大的推動因素是什麼？對損益表的潛在影響是什麼？

Thanks, Ed. Yes. As it relates to inventory, I think look, we do feel really good about the overall composition. We've made a lot of progress bringing it down across all the brands and all the regions. I think for us, it's just not at the same pace at Culture Kings than we've been able to do on the other 3 brands.

謝謝，艾德。是的。由於它與庫存有關，我認為看起來，我們確實對整體組成感覺非常好。我們在所有品牌和所有地區都取得了巨大進展。我認為對我們來說，Culture Kings 的步伐與我們在其他三個品牌上的步伐不同。

With it being men's and the streetwear sector that Culture Kings is in, there's certainly a longer life there to the inventory and less of the fashion risk that we see on the other 3 brands. So overall, I think we feel good about it.

由於 Culture Kings 所處的是男裝和街頭服飾領域，因此庫存壽命肯定更長，而且我們在其他 3 個品牌上看到的時尚風險也更小。總的來說，我認為我們對此感覺良好。

As there is opportunities, we are moving the pacing of some of the inventory and putting it in the U.S. rather than Australia. So I think we'll be good there overall.

由於存在機會，我們正在調整部分庫存的節奏，將其放在美國而不是澳洲。所以我認為我們總體上會做得很好。

And then as it relates to the omnichannel opportunities, I think as we've talked about, focused in 3 areas: wholesale, some marketplaces and then looking forward to opening our first store with Princess Polly in Q3.

然後，由於它與全通路機會相關，我認為正如我們所討論的，重點關註三個領域：批發、一些市場，然後期待在第三季度與波莉公主一起開設我們的第一家商店。

I think shorter term, obviously, I think the packs on progress is just really nice to see for Princess Polly going from a test in 15 doors to now being in 100 stores tomorrow, it's just really nice to see that over the last 4 or 5 months. I think as it relates to the kind of short, medium term, those wholesale opportunities are probably more impactful.

我認為從短期來看，顯然，我認為波莉公主從15 個門的測試到現在明天在100 家商店中看到的進展真的很高興，在過去的4 或5 個月裡看到這一點真的很高興幾個月。我認為，由於它涉及短期、中期，因此這些批發機會可能更具影響力。

But look, we are -- we've had really good progress across all of the tests, right? We've learned a lot, and we learned a lot that we can apply in each of the brands in those omnichannel opportunities. So we're just going to continue to lean into each of them across the brands. And I think overall, it will certainly be beneficial both to the comp and to our EBITDA dollars.

但是看，我們在所有測試中都取得了非常好的進展，對嗎？我們學到了很多東西，我們學到了很多東西，我們可以將這些知識應用到每個品牌的全通路機會。因此，我們將繼續深入研究各個品牌的每一個產品。我認為總體而言，這肯定對公司和我們的 EBITDA 都有利。

Next question comes from the line of Alice Xiao with Bank of America.

下一個問題來自美國銀行的 Alice Shaw 專線。

Can you elaborate on the monthly cadence of performance in the quarter and also how trends have been quarter-to-date, both generally and by region or by category? Anything you can share quarter-to-date.

您能否詳細說明本季的每月績效節奏以及季度至今的整體趨勢以及按地區或類別的趨勢？您可以分享季度至今的任何內容。

Sure, Alice. Yes, I think as we went through the quarter, we saw -- overall in the business, we saw slight improvements as we went through Q2. I would say they were -- we saw more improvements in Q2 in the U.S., and that really coming from obviously kind of lapping a tough June for us all last year, but also just from some of the omnichannel initiatives we saw helpful as well.

當然，愛麗絲。是的，我認為當我們經歷這個季度時，我們看到——總體而言，在業務方面，我們在第二季度看到了輕微的改善。我想說的是——我們在美國第二季度看到了更多的改善，這確實來自於去年我們所有人經歷的艱難的六月，但也來自我們認為也有幫助的一些全渠道舉措。

We saw pretty consistent pressure in the Australia region. And then as it relates to this quarter, what we're seeing in July is continued improvements in comps in the U.S., and we expect to be -- and our guidance contemplates positive growth in the U.S. in Q3 and Q4. We're seeing the same declines in Q3 quarter-to-date as we saw in Q2 for the Australia region.

我們在澳洲地區看到了相當持續的壓力。然後，就本季而言，我們在 7 月看到的是美國的業績持續改善，我們預計會如此，我們的指導預期美國在第三季和第四季將出現正成長。我們看到第三季迄今的下降與澳洲地區第二季的下降相同。

Next question comes from the line of Ike Boruchow with Wells Fargo.

下一個問題來自 Ike Boruchow 與富國銀行的關係。

A couple of quick questions, I guess, just to the point of the last question. In Australia, so are you baking in similar declines in the back half as you're seeing, so like kind of roughly down 30 in the back half? And then you had made a comment in your prepared remarks around that macro pressure lasting even into the first half of next year.

我想有幾個簡單的問題，就到最後一個問題。在澳大利亞，你是否會像你所看到的那樣，在後半段出現類似的下降，例如後半段大約下降 30 ？然後您在準備好的演講中就這種宏觀壓力發表了評論，這種壓力甚至持續到明年上半年。

I guess first question is what's embedded in the back half? And then based on the pressure you're seeing in Australia, at what point do you believe is reasonable for the overall business to return to total top line growth?

我想第一個問題是後半部嵌入了什麼？然後，根據您在澳洲看到的壓力，您認為整體業務何時恢復總收入成長較為合理？

Sure. Thanks, Ike. As we think about the back half, I think you'll see kind of from the guidance, we're expecting the same of nearly think about it first kind of same volume of dollars by region in Q3 that we saw in Q2. A small uplift on the top end of the guidance, and that coming from the U.S. region rather than the Australia region. I think we expect comps in Q4 -- obviously in Q4 to be better in both regions.

當然。謝謝，艾克。當我們考慮後半部分時，我認為您會從指導中看到一些情況，我們預計第三季度按地區劃分的美元數量與我們在第二季度看到的情況相同。指導上限略有上升，並且來自美國地區而不是澳大利亞地區。我認為我們預計第四季度的業績——顯然第四季度這兩個地區的業績都會更好。

Now look, that's very much as well related to the actions we took in Q4 last year, where we pulled pretty hard back on newness of inventory across the brand, but also very much on the marketing dollar spend across the brands last year, right?

現在看，這與我們去年第四季採取的行動非常相關，當時我們非常努力地減少了整個品牌庫存的新穎性，但也很大程度上減少了去年各個品牌的營銷費用，對吧？

So in Q4 this year, we expect the marketing dollars up a little bit on a rate basis year-over-year, but from a volume perspective, it will be up in the high 20s year-over-year. So I think with that level of marketing dollar increase, we would expect comps to be better in Q4 this year. And then I think as we think about next year, I think certainly, as we kind of get into -- I would say kind of for me, like it's going to pass Q1 into Q2, I would expect us to be back positive comping in the overall business.

因此，今年第四季度，我們預計行銷費用將比去年同期略有上升，但從銷售角度來看，年增幅將在 20 多美元左右。因此，我認為隨著行銷費用的增加，我們預計今年第四季的業績會更好。然後我認為，當我們考慮明年時，我當然認為，當我們進入 - 我想說對我來說，就像它將通過第一季度進入第二季度一樣，我希望我們能夠在整體業務。

We certainly see the U.S. back to positive comping in Q3. And look, it continues to be a larger and larger part of our business. It's certainly the biggest opportunity for us from a growth perspective. We're very focused on this and seeing a lot of benefits from the omnichannel initiatives. And I think leaning into all of those can get us back to positive growth.

我們當然會看到美國在第三季恢復正面的表現。看起來，它仍然是我們業務中越來越大的一部分。從成長的角度來看，這對我們來說無疑是最大的機會。我們非常關注這一點，並看到全通路計劃帶來了許多好處。我認為依靠所有這些可以讓我們恢復正成長。

Got it. And I'm sorry if I missed it, but I think I heard you say similar gross margin rate in the third quarter as that you saw in the second quarter. I don't -- sorry, I might have missed that. I didn't think I heard you comment on the full year gross margin. You had said up 100 bps 3 months ago? I mean, I imagine it's higher right now. I missed that? Or can you give some color on the full year gross margin?

知道了。如果我錯過了，我很抱歉，但我想我聽到你說第三季的毛利率與第二季的毛利率相似。我不——抱歉，我可能錯過了。我沒想到我聽到你對全年毛利率的評論。 3個月前你曾說過要漲100個基點？我的意思是，我想現在會更高。我錯過了？或者您能否對全年毛利率進行一些說明？

Yes, sure. So yes, I talked about kind of Q3 being similar to Q2. I think from an overall perspective, yes, we would expect to be kind of I think be up around 100 basis points as we think about the overall year. Obviously, we're kind of -- we've been running higher than that so far year-to-date. I think I am expecting us to just have a little bit of room as we think about promotional activity in Q4 and particularly in the Australia region.

是的，當然。是的，我談到了第三季與第二季類似。我認為從整體角度來看，是的，我們預計全年會上漲 100 個基點左右。顯然，我們今年迄今的表現一直高於這一水平。我認為，當我們考慮到第四季度的促銷活動時，尤其是在澳洲地區，我預計我們會有一點空間。

Okay. So just reiterating the up 100 bps that you had already given?

好的。那麼只是重申您已經給出的上調 100 個基點？

Yes.

是的。

(Operator Instructions) There are no further questions at this time. I would like to turn the floor back over to Ciaran Long for closing comments.

（操作員說明） 目前沒有其他問題。我想把發言權交還給夏蘭朗 (Ciaran Long) 以徵求結束意見。

Thanks, everybody. I appreciate your call and your questions and looking forward to talking to you soon.

謝謝大家。感謝您的來電和提問，並期待盡快與您交談。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。