AKA Brands Holding Corp (AKA) 2023 Q3 法說會逐字稿

Greetings and welcome to the a.k.a. Brands Holding Corp. third-quarter 2023 earnings conference. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Emily Schwartz. Thank you. You may begin.

歡迎參加 Brands Holding Corp. 2023 年第三季財報會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹艾米莉·施瓦茨。謝謝。你可以開始了。

Good afternoon. Thank you for joining a.k.a. Brands' third-quarter 2023 conference call to discuss the results released this afternoon, which can be found on our website at ir.aka-brands.com.

午安.感謝您參加 a.k.a. Brands 的 2023 年第三季電話會議，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。

With me on the call today is Ciaran Long, Interim Chief Executive Officer and Chief Financial Officer.

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 or other characterizations of future events, including guidance and underlying assumptions. Forward-looking statements involves risks and uncertainties that could cause actual results to differ materially from those expressed.

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，這些陳述涉及未來事件的預期、預測或其他特徵，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所表達的結果有重大差異。

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.

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

此次電話會議將包含非公認會計原則財務指標，例如調整後的 EBITDA 和調整後的 EBITDA 利潤率。這些非 GAAP 衡量標準與最具可比性 GAAP 衡量標準的對帳包含在我們向 SEC 提供的新聞稿中，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 third-quarter earnings call. Before we discuss our key priorities and review our results, I want to highlight some important takeaways from the quarter.

謝謝，艾米麗。大家下午好，感謝您參加我們的第三季財報電話會議。在我們討論我們的關鍵優先事項並審查我們的結果之前，我想強調本季的一些重要要點。

We delivered growth in the US business. Our balance sheet and financial condition is strong. We generated positive operating cash flow in the quarter. We're taking aggressive action to rightsize our inventory position in Australia, and we have been in the market purchasing our shares, which we believe offer tremendous long-term value.

我們實現了美國業務的成長。我們的資產負債表和財務狀況強勁。我們在本季產生了正的營運現金流。我們正在採取積極行動來調整我們在澳洲的庫存狀況，我們一直在市場上購買我們的股票，我們相信這些股票具有巨大的長期價值。

As laid out last quarter, we've been laser focused on three priorities for the back half of the year. First, chasing demand and building awareness through increased levels of newness and expanding our omnichannel initiatives. Second, improving our operations by reducing our inventory levels. And third, strengthening our balance sheet by paying down additional debt. I'm pleased to announce that we've made progress against all three priorities and will continue to advance these initiatives throughout the remainder of the year.

正如上季度所製定的，我們下半年一直專注於三個優先事項。首先，透過提高新穎性和擴大我們的全通路計劃來追逐需求並建立意識。其次，透過降低庫存水準來改善我們的營運。第三，透過償還額外債務來強化我們的資產負債表。我很高興地宣布，我們在所有三個優先事項上都取得了進展，並將在今年剩餘時間內繼續推進這些舉措。

As evidenced by our in-line sales performance, we continue to chase customer demand. Fashion newness is resonating well with our customers. And we are increasing our total addressable market, particularly in the US by introducing our brands to new channels and customers, including the opening of our first Princess Polly store in September. We continue to strategically reduce our inventory, which is down $37 million year over year and down 21% since the beginning of the year.

正如我們的線上銷售業績所證明的那樣，我們繼續追逐客戶需求。時尚新穎與我們的客戶產生了良好的共鳴。我們正在擴大我們的整體目標市場，特別是在美國，透過向新的管道和客戶介紹我們的品牌，包括在 9 月開設第一家 Princess Polly 商店。我們繼續策略性地減少庫存，庫存年減 3,700 萬美元，自年初以來減少了 21%。

And lastly, we paid off an additional $13 million of debt in the third quarter, which brings us to a year-to-date debt reduction of $37 million or 26%. I'm very proud of our progress against these initiatives, and I want to thank the team for their hard work and commitment to our brands and customers.

最後，我們在第三季額外還清了 1,300 萬美元的債務，這使我們今年迄今的債務減少了 3,700 萬美元，即 26%。我對我們在這些舉措方面取得的進展感到非常自豪，我要感謝團隊的辛勤工作以及對我們品牌和客戶的承諾。

Net sales for the second quarter were $141 million, which was in line with our expectations. Net sales in the US increased 2% compared to the third quarter last year, and grew nearly 10% in a two-year basis. I'm proud of the progress we're making in the US as a region represents our greatest opportunity for growth and brand expansions. In fact, the US now accounts for 60% of total sales. Despite the growth in the US, our quarter profitability was impacted by continued consumer macro headwinds in Australia, which led to a lower than expected third-quarter adjusted EBITDA of $4.7 million.

第二季淨銷售額為 1.41 億美元，符合我們的預期。美國的淨銷售額比去年第三季成長了 2%，兩年來成長了近 10%。我為我們在美國的進步感到自豪，因為這個地區代表了我們成長和品牌擴張的最大機會。事實上，美國現在佔總銷售額的60%。儘管美國市場實現成長，但我們的季度獲利能力受到澳洲持續的消費者宏觀不利因素的影響，導致第三季調整後 EBITDA 低於預期的 470 萬美元。

As I mentioned in my opening comments, we're taking aggressive actions to improve overall operations in the region which I will provide more detail on shortly. Importantly, the improvements we have made to our operating model enabled us to generate positive third-quarter operating cash flow of $11 million.

正如我在開場白中提到的，我們正在採取積極行動來改善該地區的整體運營，我很快就會提供更多細節。重要的是，我們對營運模式所做的改進使我們能夠在第三季產生 1,100 萬美元的正營運現金流。

Turning now to a discussion of our omnichannel initiatives and our brand highlights, we are pleased with the success we're seeing with increasing our brand's total addressable market through innovative merchandising and marketing initiatives as well as through our channel expansion initiatives. As of today, all of our brands are now active in at least three channels, including direct-to-consumer, wholesale stores. or marketplaces.

現在討論我們的全通路計劃和品牌亮點，我們對透過創新的銷售和行銷計劃以及通路擴張計劃增加我們品牌的總目標市場所取得的成功感到高興。截至今天，我們所有的品牌都活躍在至少三個管道，包括直接面向消費者的批發商店。或市場。

Princess Polly has once again ranked as a top 10 shopping website for female tees in the US according to Piper Sandler's, Taking Stock With Teens survey that was released last month, further demonstrating the power and popularity of the brand among its core demo. In an effort to accelerate brand awareness, we will officially open the first Princess Polly store in early September at the Westfield Mall in Century City, Los Angeles. The stores outperformed our expectations, and we're very pleased with the overwhelming positive response from customers. The store is approximately 3,500 square feet and features new styles arriving weekly.

根據 Piper Sandler 上個月發布的《青少年盤點》調查顯示，波莉公主再次躋身美國十大女性 T 卹購物網站之列，進一步證明了該品牌在核心演示中的實力和受歡迎程度。為了加快品牌知名度，我們將於九月初在洛杉磯世紀城的韋斯特菲爾德購物中心正式開設第一家 Princess Polly 商店。這些商店的表現超出了我們的預期，我們對顧客的壓倒性積極反應感到非常高興。該店面積約 3,500 平方英尺，每週都會推出新款式。

To give you more context on the financials, the current sales run rate for the store is tracking to $5 million in annual sales with a projected four-wall margin contribution in excess of 20%, paving the way for a tremendous opportunity to scale our physical store footprint. Customers were very enthusiastic for the opening weekend with lines forming at 4:00 in the morning as hundreds of customers waited to experience Princess Polly in real life for the first time.

為了向您提供有關財務狀況的更多背景信息，該商店當前的銷售運行率為年銷售額 500 萬美元，預計四牆利潤貢獻將超過 20%，為擴大我們的實體店規模鋪平了道路。商店足跡。顧客對開幕週末非常熱情，早上 4:00 就排起了長隊，數百名顧客等待著第一次在現實生活中體驗波莉公主。

Complete with next-generation digital displays, Instagramable moments and personalized product recommendations, the store was strategically designed to engage shoppers while also serving as a hub for content creation. Additionally, bringing to life the sense of community and connection that Princess Polly has grown through social media, the store will host special events such as product launches, meet and greets with influencers, and styling workshop.

該商店配備了下一代數位顯示器、Instagram 精彩時刻和個人化產品推薦，其策略設計旨在吸引購物者，同時也是內容創作的中心。此外，為了體現波莉公主透過社群媒體培養的社區意識和聯繫，該商店還將舉辦產品發布會、與影響者見面和造型研討會等特別活動。

We're excited about their upcoming in-store events, which recently kicked off. Yesterday, the brand hosted a USC versus UCLA block party at the store to drive college student traffic. The next week, the store will host an influencer friendsgiving event. Importantly, in addition to the profitable in-store revenue generation, 30% of in-store customers are new to the Princess Polly brand.

我們對他們最近開始的即將舉行的店內活動感到興奮。昨天，該品牌在店內舉辦了南加州大學與加州大學洛杉磯分校的街區派對，以吸引大學生客流量。下週，商店將舉辦一場有影響力的朋友贈送活動。重要的是，除了有利可圖的店內收入外，30% 的店內顧客都是波莉公主品牌的新客戶。

We're also seeing the halo effect in our e-commerce business while simultaneously gathering key customer shopping behavior Insights, which will help us to further expand our reach. The store opening solidifies Princess Polly's unique opportunity to take a strong digital brand physical. And it's clear that further enhancing Princess Polly's connections with customers through various touch points, we create long-lasting brand affinity and loyalty.

我們也看到了電子商務業務的光環效應，同時收集了關鍵客戶的購物行為見解，這將幫助我們進一步擴大業務範圍。該店的開幕鞏固了波莉公主獲得強大數位品牌實體的獨特機會。很明顯，透過各種接觸點進一步加強波莉公主與客戶的聯繫，我們創造了持久的品牌親和力和忠誠度。

To that end, I'm excited to announce that Princess Polly has hired its first Senior Vice President of Retail in the US, Sara Davis, who recently joined from lululemon, where she was the VP of Retail and was responsible for over 400 stores in the US. Sara will spearhead Princess Polly store expansion plans beginning with the addition of three to five stores in 2024, with upcoming stores in San Diego and Boston.

為此，我很高興地宣布，波莉公主聘請了美國第一位零售高級副總裁 Sara Davis，她最近從 lululemon 加入，擔任零售副總裁，負責美國 400 多家商店。美國。莎拉將帶頭波莉公主商店擴張計劃，首先是在 2024 年增加三到五家商店，隨後將在聖地亞哥和波士頓開設商店。

We also remain pleased with the success of Princess Polly's other omnichannel initiatives, including wholesale and marketplace expansion. Princess Polly has a great relationship with PacSun, which is a reminder of the brand's first wholesale partnership ever. Additionally, Princess Polly is testing wholesale agreements in Mexico and Canada in the upcoming quarters as they look to increase Princess Polly's international footprint.

我們也對波莉公主其他全通路計畫的成功感到高興，包括批發和市場擴張。波莉公主與 PacSun 有著良好的關係，這讓人想起品牌有史以來的首次批發合作關係。此外，波莉公主正在未來幾季測試墨西哥和加拿大的批發協議，因為他們希望擴大波莉公主的國際足跡。

Petal & Pup, our women's brand targeting customers aged 25 to 34 also continues to test different omnichannel growth opportunities and is now live on Macy's marketplace, adding to the brand's marketplace presence at Target. We're seeing strong assortment acceptance, setting a stage for meaningful growth entering the holiday season and beyond.

Petal & Pup 是我們針對 25 至 34 歲客戶的女性品牌，它也持續測試不同的全通路成長機會，現已在梅西百貨市場上線，增加了該品牌在 Target 的市場影響力。我們看到了強烈的品種接受度，為進入假期季節及以後的有意義的增長奠定了基礎。

In addition to enhancing Petal & Pup's brand awareness, our marketplace presence is enabling us to reach new customers. In fact, 96% of customers who purchased Petal & Pup's products on the Target or Macy's marketplace site are new-to-file customers, which is a powerful omnichannel test proof point. We are further expanding Petal & Pup's reach into two wholesale tests launching in the fourth quarter, one with Victoria's Secret and another with Mexican retailer, Liverpool.

除了提高 Petal & Pup 的品牌知名度之外，我們的市場影響力還使我們能夠接觸到新客戶。事實上，在 Target 或 Macy's 市場網站上購買 Petal & Pup 產品的客戶中有 96% 是新客戶，這是一個強有力的全通路測試證明點。我們正在進一步擴大 Petal & Pup 的業務範圍，在第四季度推出兩項批發測試，一項是與維多利亞的秘密合作，另一項是與墨西哥零售商利物浦合作。

As we think about the early success of our omnichannel initiatives at our brands, it gives me great confidence that we will increase our total addressable market and that our brands will resonate with new customers across multiple channels and formats.

當我們想到我們品牌的全通路計畫的早期成功時，我非常有信心我們將增加我們的總目標市場，而我們的品牌將透過多種管道和格式與新客戶產生共鳴。

Turning now to our streetwear brands. It's officially been one year since Culture Kings entered the US with the anniversary of its store opening this past weekend. The store surpassed its annual revenue growth and first-party brands comprised the majority of the revenue this year, further proving the relevance and demand for the international streetwear brand is strong.

現在轉向我們的街頭服飾品牌。文化之王進入美國已經正式一周年了，上週末是其開店週年紀念日。該店的收入成長超過了全年，第一方品牌佔了今年的大部分收入，進一步證明了國際街頭服飾品牌的相關性和需求強勁。

As Culture Kings continues to grow in exposure and popularity in the US, they're attracting top-tier partners in marketing events. We're excited about upcoming events at the store with Formula One and the UFC. Beginning next week in partnership with McLaren Racing and Mitchell & Ness, Culture Kings will debut a week-long activation to celebrate the Las Vegas Formula One Grand Prix.

隨著文化之王在美國的曝光度和受歡迎程度不斷提高，他們在行銷活動中吸引了頂級合作夥伴。我們對即將在商店舉辦的一級方程式和 UFC 活動感到非常興奮。從下週開始，Culture Kings 將與 McLaren Racing 和 Mitchell & Ness 合作，推出為期一周的活動，以慶祝拉斯維加斯一級方程式大獎賽。

Exclusive to Culture Kings the brand will host immersive elements in-store in line with the brand's retailtainment ethos, including an in-store replica of McLaren racing car and appearance by Lando Norris, official McLaren racing simulators, Heritage Formula One pieces and limited edition McLaren, Mitchell & Ness, and Culture Kings' products that we launched last week. We're equally pleased with the US digital business growth over the past year with active customer growth over 40% year over year.

該品牌將為Culture Kings 獨家提供符合該品牌零售娛樂精神的沉浸式元素，包括店內邁凱倫賽車的複製品和蘭多·諾里斯(Lando Norris) 的亮相、邁凱倫官方賽車模擬器、Heritage一級方程式賽車和限量版麥克拉倫、Mitchell & Ness 和 Culture Kings 的產品是我們上週推出的。我們對過去一年美國數位業務的成長同樣感到滿意，活躍客戶年增超過 40%。

In addition, Culture Kings is also picking up steam on celebrities, athletes, and influencer musicians. Jay-Z, Rick Ross, and J Balvin have already started wearing Culture Kings first-party brands recently, including Loiter and Carré. We remain very bullish on the brand's long-term growth potential.

此外，文化之王還吸引了名人、運動員和有影響力的音樂家。 Jay-Z、Rick Ross 和 J Balvin 最近開始穿著 Culture Kings 的第一方品牌，包括 Loiter 和 Carré。我們仍然非常看好該品牌的長期成長潛力。

mnml, our other streetwear brand and a dominant player in denim and bottoms for men aged 25 to 34 continues to be a top seller in Culture Kings Las Vegas and is now the top-selling first-party brand in the store. The brand is highly sought after amongst athletes and celebrities with top NFL and NBA players purchasing and wearing mnml before and after games. And mnml is also exploring omnichannel initiatives and has wholesale agreements with approximately 50 regional streetwear stores as it continues to build brand awareness across the country.

mnml 是我們的另一個街頭服飾品牌，也是25 至34 歲男士牛仔布和下裝領域的主導品牌，它繼續成為拉斯維加斯Culture Kings 的最暢銷產品，並且現在是店內最暢銷的第一方品牌。該品牌深受運動員和名人的追捧，頂級 NFL 和 NBA 球員在賽前和賽後購買和穿著 mnml。 mnml 也正在探索全通路計劃，並與大約 50 家地區街頭服飾商店簽訂了批發協議，繼續在全國範圍內建立品牌知名度。

Before I give more detail on the P&L, I want to provide an update on the environment in Australia. As I alluded to earlier, we are facing continued macro pressure across our brands in Australia and New Zealand. However, we are taking clear and decisive action in the region to set up our brands for a strong 2024.

在提供有關損益表的更多詳細資訊之前，我想先介紹一下澳洲環境的最新情況。正如我之前提到的，我們在澳洲和紐西蘭的品牌面臨著持續的宏觀壓力。然而，我們正在該地區採取明確而果斷的行動，打造我們的品牌，迎接 2024 年的強勁發展。

Towards the end of the third quarter, we made several changes to the Culture Kings Australia operating model. Under the leadership of Wez Bryett, the Co-Founder and Co-CEO of Princess Polly, we've appointed Ian Everest as the leader of Culture Kings in Australia. Over the last few years, Ian served as General Manager of Princess Polly, Australia, and he's a seasoned merchandising and marketing professional.

在第三季末，我們對澳洲文化之王的營運模式進行了一些改變。在波莉公主聯合創始人兼聯合首席執行官 Wez Bryett 的領導下，我們任命 Ian Everest 為澳洲文化之王的領導者。在過去的幾年裡，伊恩擔任澳洲波莉公主的總經理，他是一位經驗豐富的行銷和行銷專業人士。

Beginning in the third quarter, Ian and team began rapidly converting the Culture Kings merchandising model to test and repeat, which allows for speed and flexibility during dynamic consumer cycles. Ian and team have already started to transform the Culture Kings supply chain and by the second half of next year, all of Culture Kings' first-party brands will be operating on the test and repeat shorter lead time merchandising cycle.

從第三季開始，Ian 和團隊開始快速轉變 Culture Kings 的行銷模式以進行測試和重複，從而在動態消費週期中實現速度和靈活性。 Ian 和團隊已經開始改造 Culture Kings 的供應鏈，到明年下半年，Culture Kings 的所有第一方品牌都將進行測試，並重複較短的交貨時間銷售週期。

Additionally, as a result of the increased pressure on the consumer in the region, towards the end of the third quarter, we began reducing inventory of Culture Kings, which is reflected in our lower gross margin and profitability for the quarter. We will continue to work through the inventory of Culture Kings Australia through the fourth quarter and into the first quarter of next year. I'm confident that the transition to a test and repeat merchandising model and the reduction of inventory sets Culture Kings up for a strong 2024 in Australia, and we're very confident in the brand's long-term success.

此外，由於該地區消費者壓力加大，到第三季末，我們開始減少文化之王的庫存，這反映在我們本季較低的毛利率和獲利能力上。我們將繼續對澳洲文化之王的庫存進行整理，直到第四季直至明年第一季。我相信，向測試和重複銷售模式的轉變以及庫存的減少將使 Culture Kings 為 2024 年在澳洲的強勁表現做好準備，我們對該品牌的長期成功充滿信心。

Now I'll give you more detail on the P&L before taking your questions.

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。

For the third quarter, net sales were $141 million, a decline of 10% compared to the third quarter last year, but a sequential improvement for the second quarter. On the constant currency basis, net sales were down 8% compared to last year. As I mentioned, I'm proud that we delivered growth of 2% in the US compared to the third quarter last year. The Australia and New Zealand region declined 25%, and the rest of world grew by 5%.

第三季淨銷售額為 1.41 億美元，比去年第三季下降 10%，但比第二季較上季有所改善。以固定匯率計算，淨銷售額比去年下降 8%。正如我所提到的，與去年第三季相比，我們在美國實現了 2% 的成長，對此我感到很自豪。澳洲和紐西蘭地區下降了 25%，世界其他地區則增加了 5%。

Total orders for the quarter were 1.7 million are down 6% compared to the third quarter last year, which was predominantly impacted by lower demand in Australia and New Zealand region, where orders were down 17%. In the US, where we see the largest opportunity to expand our reach, we are pleased to see order growth of 6%, driven by higher traffic.

本季總訂單量為 170 萬份，較去年第三季下降 6%，這主要是受到澳洲和紐西蘭地區需求下降的影響，該地區的訂單量下降了 17%。在美國，我們看到了擴大影響力的最大機會，我們很高興看到在流量增加的推動下訂單增加了 6%。

We served 3.6 million active customers in the third quarter. On a regional basis, active customers in the US were down 4%. And in Australia, New Zealand active customers were down 14%. Our active customer count is calculated on a 12-month basis. And as a reminder, we pulled back on marketing spend in the fourth quarter last year, which will impact our active customer growth into the second quarter of 2024.

第三季我們為 360 萬活躍客戶提供服務。從地區來看，美國的活躍客戶下降了 4%。在澳洲和紐西蘭，活躍客戶下降了 14%。我們的活躍客戶數量以 12 個月計算。提醒一下，我們去年第四季削減了行銷支出，這將影響我們到 2024 年第二季的活躍客戶成長。

Average order value of $81 decreased 5% compared to the third quarter last year [on a] reported basis and was down 2% in constant currency. Gross AOV in local currency was down 8% in Australia and New Zealand region, primarily due to our targeted promotions to clear through inventory. Our third-quarter return rate was 18%, which remains one of the lowest among our peers.

根據報告，平均訂單價值為 81 美元，與去年第三季相比下降了 5%，以固定匯率計算下降了 2%。澳洲和紐西蘭地區以當地貨幣計算的總 AOV 下降了 8%，這主要是由於我們有針對性的促銷活動以清理庫存。我們第三季的回報率為 18%，仍然是同業中最低的之一。

Moving to profitability, gross margin in the third quarter was 55.4% compared to 55.7% in the same period last year. As mentioned, the modest gross margin contraction was entirely due to the strategic discounting in Culture Kings Australia as we successfully moved through inventory, which positions the brand to increase its product newness over the coming quarters. The gross margin was also impacted by a higher return rate, partially offset by lower freight expenses.

轉向獲利能力，第三季毛利率為55.4%，去年同期為55.7%。如前所述，毛利率小幅收縮完全是由於我們成功地清理了庫存，Culture Kings Australia 的戰略折扣，這使該品牌能夠在未來幾個季度增加其產品新穎性。毛利率也受到較高退貨率的影響，但部分被較低的運費所抵銷。

To give you more perspective, the actions we're taking our Culture Kings Australia negatively impacted our gross margins by approximately 105 basis points in the quarter. Excluding the Australia region, gross margins would have increased, driven by improved full-price selling and benefits more airfreight versus last year.

為了讓您有更多的視角，我們澳洲文化之王採取的行動對本季我們的毛利率產生了約 105 個基點的負面影響。如果不包括澳洲地區，由於全價銷售改善以及空運與去年相比受益更多，毛利率將會增加。

Selling expenses declined 12% to $36 million compared to $41 million in the third quarter of 2022. Selling expenses were 26% of net sales, down 60 basis points compared to the third quarter of last year. Driven by operational efficiencies and distribution fulfillment and outbound shipping, I'm pleased to report that we were once again able to leverage selling expenses. Anchored on the operational efficiencies we have built into our business model, we remain highly nimble organization with the ability to appropriately flex our cost structure aligned with the demand environment.

銷售費用下降 12%，至 3,600 萬美元，而 2022 年第三季為 4,100 萬美元。銷售費用佔淨銷售額的 26%，比去年第三季下降 60 個基點。在營運效率、分銷履行和出境運輸的推動下，我很高興地報告，我們再次能夠利用銷售費用。以我們在業務模式中建立的營運效率為基礎，我們保持高度靈活的組織，能夠根據需求環境適當調整我們的成本結構。

Marketing expenses in the third quarter were $18.5 million compared to $16.5 million in the third quarter of 2023. On a rate basis, marketing expenses were 13.1% of net sales compared to 10.6% of net sales in the third quarter of 2023. In the third quarter, we continued to ramp up our marketing spend in correlation with our newness to drive demand, and we also experienced lower levels of effectiveness, particularly in the Australia region.

第三季的行銷費用為1,850 萬美元，而2023 年第三季為1,650 萬美元。以費率計算，行銷費用佔淨銷售額的13.1%，而2023 年第三季則佔淨銷售額的10.6 %。第二季度，我們繼續增加與我們的新事物相關的行銷支出以推動需求，但我們的有效性也較低，特別是在澳洲地區。

We are working hard to improve our marketing effectiveness over the coming quarters. And as we further omnichannel expansion efforts, we anticipate achieving improved levels of effectiveness and a moderation under marketing rates.

我們正在努力提高未來幾季的行銷效率。隨著我們進一步開展全通路擴張工作，我們預計將提高有效性水準並降低行銷率。

General and administrative expenses declined by 6% to $24.6 million compared to $26.1 million in the third quarter of 2022. On a rate basis, G&A expenses were 17.5% of net sales compared to 16.8% of net sales in the third quarter of 2022. The change in rate basis was primarily driven by lower sales volume compared to the prior year. As I stated on prior calls, our expense base is largely fixed and improvements in sales will require a nominal incremental G&A expenses supporting opportunities to leverage this line in the future.

一般及行政費用下降6%，至2,460 萬美元，而2022 年第三季為2,610 萬美元。以費率計算，一般及行政費用佔淨銷售額的17.5%，而2022 年第三季則佔淨銷售額的16.8%。費率基礎的變化主要是由於銷量與上年相比有所下降。正如我在先前的電話會議中所說，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，以支持未來利用該產品線的機會。

Adjusted EBITDA was $4.7 million compared to $9.2 million in the same period last year. Adjusted EBITDA margin for the third quarter of 2023 was 3.3% compared to 5.9% in the same period last year. I want to reiterate that our adjusted EBITDA compared to our earlier expectations was entirely due to this to the strategic actions we took in Australia to aggressively move through inventory, placing the region's inventory composition with a higher level of newness slated for next year.

調整後 EBITDA 為 470 萬美元，去年同期為 920 萬美元。 2023 年第三季調整後 EBITDA 利潤率為 3.3%，而去年同期為 5.9%。我想重申的是，與我們先前的預期相比，我們調整後的 EBITDA 完全是由於我們在澳洲採取的積極清理庫存的戰略行動，使該地區明年的庫存構成達到了更高的新水平。

For the third quarter of 2023, net loss was $70 million or $6.58 per share compared to a net loss of $100,000 or $0.1 per share in the same period last year.

2023年第三季度，淨虧損為7,000萬美元，即每股6.58美元，而去年同期淨虧損為10萬美元，即每股0.1美元。

I also would like to remind everyone that effective September 29, we implemented a 1-for-12 reverse stock split, which decreased our shares outstanding to approximately 11 million shares. All references to our outstanding common stock, including per share information have been retrospectively adjusted to reflect the reverse stock split.

我還想提醒大家，從9月29日起，我們實施了12股1股的反向股票分割，這使得我們的流通股減少到約1,100萬股。所有對我們已發行普通股的引用，包括每股訊息，都已進行追溯調整，以反映反向股票分割。

Turning to the balance sheet. As I mentioned, I'm very pleased with the progress we've made strengthening our balance sheet. We've taken clear action over the last several quarters to significantly reduce our debt and meaningfully improve our inventory levels and composition while also benefiting our working capital.

轉向資產負債表。正如我所提到的，我對我們在加強資產負債表方面的進展感到非常滿意。在過去的幾個季度中，我們採取了明確的行動，顯著減少了我們的債務，並有意義地改善了我們的庫存水準和組成，同時也使我們的營運資本受益。

We ended the quarter with $21 million in cash and cash equivalents. We reduced our debt by 26% or $37 million from the beginning of fiscal year, ending the quarter at $107 million. We have total liquidity of approximately $63 million at the end of the third quarter.

本季結束時，我們擁有 2,100 萬美元的現金和現金等價物。與財年年初相比，我們的債務減少了 26%，即 3,700 萬美元，本季末債務減少了 1.07 億美元。截至第三季末，我們的流動資金總額約為 6,300 萬美元。

Move into inventory. I'm proud of the progress our teams across all of our brands have made on inventory levels, which at the end of the quarter totaled $100 million compared to $136.9 million at the end of third quarter 2022. Total inventory dollars were down 27% and units were down 15% compared to last year.

進入庫存。我為我們所有品牌的團隊在庫存水準方面取得的進展感到自豪，截至本季末，庫存水準總計為 1 億美元，而 2022 年第三季末為 1.369 億美元。庫存總額下降了 27%，單位數量較去年下降15%。

As I mentioned, with continued macro pressure in Australia, we are taking aggressive actions to rightsize the Culture Kings inventory in the region. For our other brands, Princess Polly, Petal & Pup, and mnml, we are confident in the overall inventory composition, newness, and quality across all regions. We expect to see a continued decrease in inventory dollars and units through the end of the fiscal year.

正如我所提到的，隨著澳洲持續的宏觀壓力，我們正在採取積極行動來調整該地區文化之王的庫存規模。對於我們的其他品牌，Princess Polly、Petal & Pup 和 mnml，我們對所有地區的整體庫存組成、新穎性和品質充滿信心。我們預計到本財年末，庫存金額和單位數量將持續減少。

In the third quarter, we generated $8.9 million of free cash flow and $11 million of operating cash, which compared to $12 million in the third quarter of 2022. For the first nine months of the year, we generated $80 million in operating cash, which compared to an operating cash usage of $11 million in the comparable period of 2022. I am very pleased that our positive EBITDA, coupled with prudent working capital management enables us to have stable positive operating cash flow profile.

第三季度，我們產生了 890 萬美元的自由現金流和 1,100 萬美元的營運現金，而 2022 年第三季為 1,200 萬美元。今年前 9 個月，我們產生了 8,000 萬美元的營運現金，其中相較之下，2022 年同期的營運現金使用量為1,100 萬美元。我很高興我們的正EBITDA 加上審慎的營運資本管理使我們能夠擁有穩定的正營運現金流狀況。

In the third quarter, we repurchased 106,566 shares for a total cost of approximately $600,000. As of the end of the third quarter, we have approximately $1 million remaining in our share repurchase authorization.

第三季度，我們回購了 106,566 股股票，總成本約為 60 萬美元。截至第三季末，我們的股票回購授權尚剩餘約 100 萬美元。

Finally, I want to touch on the $68.5 million non-cash goodwill impairment charge that you saw in our filings. In the quarter, we updated valuations for our current businesses and macro trends and took an impairment charge to reflect this updated valuation.

最後，我想談談您在我們的文件中看到的 6850 萬美元非現金商譽減損費用。在本季度，我們更新了當前業務和宏觀趨勢的估值，並提列了減損費用以反映更新後的估值。

We remain encouraged by the performance in the US, and we expect the actions we're taking in Australia to position us well for 2024. We will continue to generate cash flow and we expect to pay down between $10 million and $15 million more of debt in the fourth quarter to further strengthen our balance sheet and set us up for a strong 2024. In light of the macroeconomic conditions in the Australia region and the actions we're taking to clear through inventory in the region, we now expect to deliver between $550 million and $555 million in net sales and between $13.5 million and $15.5 million in EBITDA for the year.

我們仍然對美國的表現感到鼓舞，我們預計我們在澳洲採取的行動將使我們在 2024 年處於有利地位。我們將繼續產生現金流，預計將償還 1000 萬至 1500 萬美元的債務我們將在第四季度進一步加強我們的資產負債表，為我們實現強勁的2024 年奠定基礎。鑑於澳洲地區的宏觀經濟狀況以及我們正在採取的清理該地區庫存的行動，我們現在預計將在本年度淨銷售額為5.5 億美元至5.55 億美元，EBITDA 為1,350 萬美元至1,550 萬美元。

Lastly, I want to let you know that while Jill is doing really well, she has made the personal decision to step into a strategic advisory role effective immediately. She will remain on a.k.a.'s Board of Directors, and the Board has begun a search for a Chief Executive Officer. Jill is a retail industry veteran and has championed a.k.a. brands over the past 3.5 years. We're immensely grateful for Jill's leadership and her continued commitment to the company she has helped build.

最後，我想讓您知道，雖然吉爾做得非常好，但她已做出個人決定，擔任策略顧問角色，立即生效。她將繼續留在又名董事會，董事會已開始物色執行長。 Jill 是一位零售業資深人士，在過去 3.5 年裡一直倡導 A.K.A. 品牌。我們非常感謝吉爾的領導以及她對她幫助建立的公司的持續承諾。

Before we take your questions, I want to remind you that our priorities for the remainder of the year are clear. We continue to reach new customers and expand our total addressable markets through our direct-to-consumer initiatives and omnichannel expansion. We remain diligently focused on finding even more operational efficiencies by reducing our inventory and managing our expenses.

在回答您的問題之前，我想提醒您，我們今年剩餘時間的優先事項是明確的。我們繼續透過直接面向消費者的舉措和全通路擴張來吸引新客戶並擴大我們的整體目標市場。我們仍然致力於透過減少庫存和管理費用來提高營運效率。

And we need to further strengthen our balance sheet and pay down more debt in the fourth quarter. I am confident that these actions we are taking in the remainder of the year set our brands up for a strong and successful 2024, and we remain committed to driving long-term growth and profitability next year and beyond.

我們需要進一步加強我們的資產負債表，並在第四季度償還更多債務。我相信，我們在今年剩餘時間內採取的這些行動將使我們的品牌在 2024 年實現強勁和成功，並且我們仍然致力於推動明年及以後的長期增長和盈利。

Now we'll open it up for questions you.

現在我們將打開它來回答您的問題。

Thank you. Ladies and gentlemen, at this time we will be conducting a question-and-answer session. (Operator Instructions)

謝謝。女士們、先生們，此時我們將進行問答環節。 （操作員說明）

Edward Yruma, Piper Sandler.

愛德華·尤魯瑪，派珀·桑德勒。

Hey, guys. Thanks for taking my question. And Jill, best of luck in the future. I guess just want to click down a little bit on the Princess Polly store. Obviously good to hear it's off to a good start. Is this the start of a broader retail strategy? I know you always have Culture Kings. Do you foresee opening additional doors in either of those concepts?

大家好。感謝您提出我的問題。吉爾，祝你未來好運。我想只是想在波莉公主商店上點擊一下。顯然很高興聽到這是一個好的開始。這是更廣泛的零售策略的開始嗎？我知道你們總是有文化之王。您是否預見到這些概念中的任何一個都會打開更多的大門？

And then as a follow-up, just wanted to understand a bit more on Australia. Is this basically the end of kind of restructuring that business or do you think if volumes fall further, there may need to be additional expense action? Thank you.

然後作為後續行動，只是想多了解澳洲。這基本上是該業務重組的結束，還是您認為如果銷售量進一步下降，可能需要採取額外的費用行動？謝謝。

Thanks, Ed. Yeah, I think we're really pleased with the opening of the Princess Polly store and really all the omnichannel initiatives that we have going across all four brands are in at least three channels at this point. Yeah, the Princess Polly store is off to a great start, and a really solid run rate, and we expect it to be over 20% from an EBITDA perspective. Look, it's also great to see that 30% of the customers coming into the store are new to Princess Polly. And all of that gives us a great feeling to kind of invest and continue investing in the kind of the long term of that brand.

謝謝，艾德。是的，我認為我們對波莉公主商店的開業感到非常高興，而且我們在所有四個品牌上實施的所有全渠道舉措目前至少在三個渠道中。是的，波莉公主商店有了一個良好的開端，並且運行率非常穩定，從 EBITDA 的角度來看，我們預計其運行率將超過 20%。你看，很高興看到進店的顧客中有 30% 都是波莉公主的新顧客。所有這些都讓我們有一種很好的感覺，可以對這個品牌進行長期投資並繼續投資。

And we're delighted that a couple of weeks ago, Sara joined us as Head of Retail for Princess Polly and brings her background from lululemon, where she managed 400 stores in the US. And we feel with that, we will expand our retail footprint for Princess Polly. Next year, we're looking to do three to five stores, and we'll let you know as we kind of get more locations and update you as we go.

我們很高興幾週前，Sara 加入我們，擔任波莉公主的零售主管，並帶來了她在 lululemon 的背景，她在美國管理著 400 家商店。我們認為，我們將擴大波莉公主的零售足跡。明年，我們計劃開設三到五家商店，當我們獲得更多地點時我們會通知您，並隨時更新您的資訊。

And specifically on Culture Kings, I think, we feel really good with Ian and Wez in place there now and them bringing their expertise from Princess Polly and the deep understanding of the test and repeat model into Culture Kings. We've seen across the other three brands, the benefits from that test and repeat model and I think it's really core to us being back to growth and that 2% growth we saw in the US in Q3.

特別是在文化之王方面，我認為，我們對伊恩和韋茲現在的到位感覺非常好，他們將波莉公主的專業知識以及對測試和重複模型的深刻理解帶入文化之王。我們已經在其他三個品牌中看到了這種測試和重複模式的好處，我認為這對於我們恢復成長以及第三季在美國看到的 2% 的成長來說確實是核心。

We're already taken actions and making progress. We feel we've seen more progress as we go through the first half of next year, but kind of expect that it will be the back half of next year before we see the full impact of that. But certainly, believe, look, there's still a lot of value in that brand and long-term growth in that brand. We're already seeing that in the US.

我們已經採取行動並取得進展。我們覺得明年上半年我們已經看到了更多進展，但預計要到明年下半年才能看到其全面影響。但當然，相信，看，該品牌仍然有很大的價值，並且該品牌的長期成長。我們已經在美國看到了這一點。

Great. Thanks so much.

偉大的。非常感謝。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Hi. This is Julianna on for Ike. Thank you everyone for the question. A quick one here. I was wondering if maybe there's any additional commentary on the monthly sequential performance this past quarter and if maybe there's any note on what we've seen in the current month and expectations for holiday. Thank you.

你好。這是艾克的朱莉安娜。謝謝大家的提問。這裡快一點。我想知道是否對上個季度的月度連續表現有任何額外的評論，以及是否對我們本月所看到的情況以及對假期的預期有任何說明。謝謝。

Thanks, Julianna. Yeah, I would just add -- touch on -- I think we've seen continued improvements as we've improved the quality of the inventory across the brands. I think with the test and repeat model at three of the brands, we really made progress on those. In January, those three brands got to a situation where their inventory growth was lower than their sales growth. And we've seen that continue as we've gone through the year. And so we're just really happy to be back at growth in the US and that 2% growth.

謝謝，朱莉安娜。是的，我想補充一點——我認為我們已經看到了持續的改進，因為我們提高了各個品牌的庫存品質。我認為透過對三個品牌的測試和重複模型，我們確實在這些方面取得了進展。 1月份，這三個品牌出現了庫存成長低於銷售成長的情況。我們已經看到這種情況在這一年中持續存在。因此，我們非常高興能夠在美國恢復成長並實現 2% 的成長。

I think as we think about Q4, we feel like we've really -- we've got great quality of inventory. We've got the right product. We feel we're set up for a strong holiday and are just going to lean into and execute against that.

我認為，當我們考慮第四季度時，我們感覺我們真的擁有高品質的庫存。我們有合適的產品。我們覺得我們已經為一個充實的假期做好了準備，並且將朝著這個目標努力並執行。

Great. Thank you so much.

偉大的。太感謝了。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Hi, good afternoon, and best regards to Jill. As you think about the gross margin, Ciaran, how do you unpack it -- the discounting in Culture Kings, how do you think moves going forward, the high return rates and some of the offsets to that?

嗨，下午好，向吉爾致以最誠摯的問候。當你考慮毛利率時，Ciaran，你如何解讀它——《文化之王》的折扣，你認為未來的走勢如何，高回報率以及對此的一些抵消？

And then on the adjusted EBITDA side and the guidance that you provided, as you think about this fourth quarter promotional do you need to be? And with third-quarter inventory down 21%, how are you thinking about inventory for the balance of the year? Thank you.

然後，在調整後的 EBITDA 方面以及您提供的指導方面，當您考慮第四季度促銷時，您需要這樣做嗎？第三季庫存下降了 21%，您如何看待今年剩餘時間的庫存？謝謝。

Sure. Thanks, Dana. I think as we head into the fourth quarter, I would say, we are clearly looking at the trends we've seen in the third quarter and really great to be back to growth in the US with that 2% and seeing strength across all of the brands and all of the omnichannel initiatives that we have in place now in the US and more coming internationally. And again, Australia kind of expecting the same trends that we've seen.

當然。謝謝，達納。我認為，當我們進入第四季度時，我想說，我們正在清楚地關注第三季度所看到的趨勢，非常高興美國能夠恢復 2% 的成長，並看到所有領域的強勁表現。我們現在在美國實施的品牌和所有全通路計劃以及更多的國際計劃。澳洲再次期待我們所看到的相同趨勢。

And as I mentioned in my remarks, we invested about 105 basis points of gross margin with the actions we took to move through inventory at Culture Kings in Australia in Q3. I think as we head into Q4, we certainly feel it won't be as promotional as last year. With the test and repeat model we have, the inventory at three of the brands is really, really strong. But we do -- we're modeling that will be down about 100 basis points versus last year for Q4 this year. And that's really the big driver of the change in guidance for us.

正如我在演講中提到的，我們在第三季度透過澳洲 Culture Kings 的庫存清理行動投入了約 105 個基點的毛利率。我認為，當我們進入第四季時，我們肯定會覺得它不會像去年那樣促銷。透過我們的測試和重複模型，三個品牌的庫存確實非常強大。但我們確實如此——我們正在建模，今年第四季這一數字將比去年下降約 100 個基點。這確實是我們指導方針變化的重要推動力。

And as we think about Q4, I think, really happy in the other areas of the P&L to see that we're leveraging now and selling expenses, down year over year on G&A. Certainly up a little bit these days in marketing like others, but I think as we continue to lean into the omnichannel initiatives, that will balance out over time.

當我們考慮第四季度時，我認為，在損益表的其他領域，我們非常高興看到我們現在正在利用槓桿和銷售費用，而一般管理費用則較去年同期下降。當然，像其他人一樣，這些天在行銷方面也有所進步，但我認為，隨著我們繼續傾向於全通路計劃，隨著時間的推移，這種情況將會平衡。

Thank you.

謝謝。

Ashley Owens, KeyBanc.

阿什利·歐文斯，KeyBanc。

Thanks for taking the question. Overlapping the year opening of Culture Kings in Vegas, is there anything you'd attribute the strength in the US to? And then maybe any insights you've identified that you could implement as you look to rework your strategy in Australia. Thanks.

感謝您提出問題。今年文化之王在維加斯開幕，您認為美國的強勢有什麼原因嗎？然後也許是您在尋求重新制定澳洲策略時可以實施的任何見解。謝謝。

Yeah. Thanks, Ashley. Look, I think it's great to see the brands resonating with our customers, and I think that's really a testament to having just great quality, on-trend product at an accessible price point. And I think that's where we're just -- we've always maintained and we're going to continue to lean in. I think as we look across the brands, I think they're all just doing some really great integrate work.

是的。謝謝，阿什利。看，我認為很高興看到這些品牌與我們的客戶產生共鳴，我認為這確實證明了我們以實惠的價格提供了優質、流行的產品。我認為這就是我們一直在堅持的地方，我們將繼續努力。我認為，當我們審視各個品牌時，我認為他們都只是在做一些非常出色的整合工作。

You see Princess Polly continues to be in the top 10 for Piper Sandler's teen survey. We continue to see NBA, NFL players and more every day wearing mnml products. People like Victoria's Secret looking to work with Petal & Pup. And then you've got Culture Kings. I think what they're doing with McLaren at the moment is just a great example of how differentiated our brands are from a merchandise perspective and also from a marketing perspective.

您將看到波莉公主繼續位列 Piper Sandler 青少年調查的前十名。我們每天都會看到 NBA、NFL 球員等穿著 mnml 產品。像維多利亞的秘密這樣的人希望與 Petal & Pup 合作。然後你就有了文化之王。我認為他們目前與麥克拉倫所做的事情只是一個很好的例子，從商品角度和行銷角度來看，我們的品牌有多麼差異化。

And I think all of the brands are going to continue to lean into their differentiation, and they're going to do that on the direct to consumer side. And we're also really starting to see some of the early signs that what we're doing from an omnichannel perspective really has a big opportunity for these brands. I think we see that with the growth in the US but also with the partners that are looking to -- that we're working with now and that we're looking to work with.

我認為所有品牌都將繼續致力於差異化，並且他們將在直接面向消費者的方面做到這一點。我們也確實開始看到一些早期跡象，表明我們從全通路角度所做的事情確實為這些品牌帶來了巨大的機會。我認為，隨著美國的成長，我們也看到了這一點，也看到了我們現在正在合作以及希望與之合作的合作夥伴。

I think we're still a little bit behind from an active customer perspective. But it's great that we see that. At marketplace between Target and Macy's, 96% of those customers are new to Petal & Pup. We see 30%, as I said, of the customers coming into Princess Polly stores are new to Princess Polly. I think there's just -- there's a lot of opportunities for these brands and we're going to continue to lean in and execute against this.

我認為從正面的客戶角度來看，我們仍然有點落後。但很高興我們看到這一點。在 Target 和 Macy's 之間的市場中，96% 的客戶是 Petal & Pup 的新客戶。正如我所說，我們看到 30% 進入波莉公主商店的顧客都是波莉公主的新顧客。我認為這些品牌有很多機會，我們將繼續努力並執行這一點。

Appreciate the color. Thanks.

欣賞顏色。謝謝。

(Operator Instructions) We do have a follow-up question from the line of Dana Telsey. Please proceed with your question.

（操作員說明）我們確實有來自 Dana Telsey 的後續問題。請繼續你的問題。

I must have pressed incorrectly. I apologize.

一定是我按錯了。我道歉。

Well, there are no further questions in the queue. This does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

好吧，隊列中沒有其他問題了。今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路並度過美好的一天。