AKA Brands Holding Corp (AKA) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Jay and I'll be your conference operator today. At this time, I would like to welcome everyone to the A K A brands Holding Corp third quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session.

謝謝你的支持。我叫傑伊，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 A K A Brands Holding Corp 2024 年第三季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。

If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again.

如果您想在此期間提出問題，只需按電話鍵盤上的星號，然後再按數字 1 即可。如果您想撤回問題，請再按星號一。

But now let's turn the conference over to Emily head of investor relations. You may begin.

但現在讓我們把會議交給投資人關係主管艾蜜莉。你可以開始了。

Good afternoon. Thank you for joining A K A brands third quarter, fiscal 2024 conference call to discuss the results released this afternoon, which can be found on our website at Ir dot A K A dash brands dotcom. With me on the call today is Jon Long Interim Chief Executive Officer and Chief Financial Officer.

午安.感謝您參加 A K A Brands 2024 財年第三季電話會議，討論今天下午發布的業績，該結果可以在我們的網站 Ir dot A K A dash Brands dotcom 上找到。今天與我一起參加電話會議的是喬恩朗 (Jon Long) 臨時執行長兼財務長。

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.

前瞻性陳述涉及風險和不確定性，可能導致實際結果與進一步討論與我們業務相關的風險而表達的結果有重大差異。請參閱我們向 SEC 提交的文件。

Please note we assume no obligation to update any such forward-looking statements.

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 nongaap financial measures such as adjusted EBITA and adjusted EBITA margin reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the release furnished to the SEC and available on our website. With that, I'll turn the call over to CIARAN.

這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EBITA 以及這些非公認會計原則指標與最具可比性的公認會計原則指標的調整後息稅折舊攤銷前利潤率調節表，這些指標包含在向SEC 提供的新聞稿中，並可在我們的網站上取得。這樣，我會將電話轉給 CIARAN。

Thanks Emily. Good afternoon, everyone and thank you for joining us today to discuss our third quarter results.

謝謝艾米麗。大家下午好，感謝您今天加入我們討論我們的第三季業績。

I'm very pleased that we had another strong quarter exceeding expectations on both the top and bottom lines.

我很高興我們又一個強勁的季度在營收和利潤上都超出了預期。

I want to take a moment to thank the teams for their continued commitment.

我想花點時間感謝各團隊的持續承諾。

To building great next generation brands that customers love.

打造顧客喜愛的偉大的下一代品牌。

Our steadfast focus on executing our strategic initiatives and innovation continues to drive growth and Profitability.

我們堅定不移地專注於執行策略舉措和創新，繼續推動成長和獲利。

Let me highlight some key achievements from the corner.

讓我重點介紹一下角落裡的一些關鍵成就。

Our net sales growth surpassed expectations reaching approximately 150 million at 6.4% increase year over year.

我們的淨銷售額成長超出預期，達到約 1.5 億美元，年增 6.4%。

The momentum in the US continues and we delivered net sales of 100 million. A robust 19.5% increase over the same period last year.

美國的勢頭仍在繼續，我們的淨銷售額達到了 1 億美元。較去年同期強勁成長19.5%。

Our strong top line performance marks our second consecutive quarter of overall growth. And importantly, our fifth consecutive quarter of positive growth in the US.

我們強勁的營收業績標誌著我們連續第二季實現整體成長。重要的是，我們在美國連續第五個季度實現正成長。

We're seeing tremendous traction with customers, both new and existing and we achieved an impressive 14% growth in our active customer base year. Over year, we delivered gross margin of 58%. Our highest level achieved in the past three years.

我們看到了對新客戶和現有客戶的巨大吸引力，我們的活躍客戶群今年實現了 14% 的令人印象深刻的成長。去年，我們的毛利率為 58%。我們達到了過去三年來的最高水準。

Our strong growth margin underscores the strength and effectiveness of our test and repeat business model, the uniqueness of our portfolio brand strategy and our ability to drive operational efficiency.

我們強勁的成長利潤突顯了我們的測試和重複業務模式的實力和有效性、我們組合品牌策略的獨特性以及我們提高營運效率的能力。

And I'm proud to announce that we delivered over 8 million in adjusted EBITDA, an impressive 75% increase compared to the same period last year, which was ahead of our expectations based on the exceedingly strong customer response from Pedal and Pop on Nordstrom dotcom, Pedal and pub launched in over 40 Nordstrom in October.

我很自豪地宣布，我們的調整後 EBITDA 已超過 800 萬美元，與去年同期相比增長了 75%，令人印象深刻，這超出了我們基於 Nordstrom dotcom 上 Pedal 和 Pop 極其強烈的客戶反應的預期、 Pedal 和pub 於10 月在Nordstrom 超過40 家商店推出。

Princess Polly also launched in 20 Nordstrom stores in October, amplifying our brand visibility and customer reach and lastly on the brick and mortar expansion front, Princess Polly opened two new stores in the third quarter, one in San Diego and one in Scottsdale.

Princess Polly 也在10 月開設了20 家Nordstrom 商店，擴大了我們的品牌知名度和客戶覆蓋範圍，最後，在實體擴張方面，Princess Polly 在第三季度開設了兩家新店，一家在聖地亞哥，一家在斯科茨代爾。

Both also a fantastic start. I'm also excited that last week, we announced that Princess Polly will be opening its first store in New York City.

兩者都是一個美妙的開始。我還很興奮的是，上週我們宣布波莉公主將在紐約市開設第一家商店。

The 8,000 square foot two level store will be located in Soho and is expected to open in early 2025.

這家 8,000 平方英尺的兩層商店將位於 Soho，預計於 2025 年初開業。

We continue to execute against our strategic operating framework that we laid out at the beginning of the year which is anchored in three key priorities.

我們繼續執行年初制定的策略營運框架，該框架以三個關鍵優先事項為基礎。

Priority number one is to retain existing and attract new customers as demonstrated by a 14% increase in active customer base. Our brands are attracting new customers while also staying top of mind for existing customers, leveraging our test and repeat merchandizing approach. Our brands are launching new styles weekly which when combined with innovative brand marketing across a variety of platforms is resonating with existing and new customers across our brand portfolio.

第一要務是保留現有客戶並吸引新客戶，活躍客戶群增加 14% 就證明了這一點。我們的品牌利用我們的測試和重複推銷方法，在吸引新客戶的同時，也成為現有客戶的首要關注點。我們的品牌每週都會推出新款式，與跨各種平台的創新品牌行銷相結合，與我們品牌組合中的現有和新客戶產生共鳴。

Priority number two is showing up for our customers wherever they choose to shop while we're continuing to strengthen our own online presence. We're also expanding into experiential stores, wholesale and marketplaces.

第二要務是在我們繼續加強自己的線上業務的同時，無論客戶選擇在哪裡購物，我們都會為他們提供服務。我們也擴展到體驗店、批發和市場。

I'll delve into brand specific strategy shortly but I'm thrilled to report that we're seeing success across all distribution channels which significantly expands our brand reach this multichannel growth underscores the unique position of leveraging our successful profitable direct to consumer brands and introducing them to new customers through new channels.

我很快就會深入研究品牌特定策略，但我很高興地報告，我們在所有分銷管道上都取得了成功，這顯著擴大了我們的品牌影響力，這種多通路成長強調了利用我們成功的直接面向消費者品牌獲利的獨特地位，並將透過新管道向新客戶提供服務。

And it also reinforces the significant untapped potential for our brands in the US market and globally.

它也增強了我們品牌在美國市場和全球市場尚未開發的巨大潛力。

And our third priority is streamlining our operations to deliver financial benefits.

我們的第三個優先事項是簡化我們的營運以提供經濟效益。

Our strong third quarter performance demonstrates the power of our operating model with robust top line growth driving substantially but off flow through and expansion compared to the prior year.

我們強勁的第三季業績證明了我們營運模式的力量，強勁的營收成長顯著推動了流量和擴張，但與前一年相比。

This success reflects our continued focus on operational efficiencies and showcases our ability to leverage the A K A platform to deliver meaningful financial improvement.

這一成功反映了我們對營運效率的持續關注，並展示了我們利用 A K A 平台實現有意義的財務改善的能力。

Now, I'll share some highlights from our grant before I dive deeper into the financials on the women's side, Princess Polly, our next generation trend driven brand and Petal and pop, which targets a slightly older demographic, continued to gain market share in the US. We're very pleased with the continued momentum and strong third quarter performance across across both brands, direct to consumer channels and omni channel initiatives.

現在，在深入研究女性方面的財務狀況之前，我將分享我們資助的一些亮點，我們的下一代趨勢驅動品牌 Princess Polly 以及針對年齡稍大的人群的 Petal and pop 繼續獲得市場份額美國。我們對兩個品牌、直接面向消費者通路和全通路計畫的持續成長動能和強勁的第三季業績感到非常滿意。

Our women's brands fully operate on a data driven test and repeat merchandizing approach which allows them to introduce new styles weekly on their sites, providing customers with fresh high quality and exclusive styles.

我們的女裝品牌完全採用數據驅動的測試和重複行銷方法運作，這使她們能夠每週在其網站上推出新款式，為客戶提供新鮮的高品質和獨特的款式。

In addition to Princess Poly strengthen dresses, the new categories that Princess Poly launched earlier this year including loungewear and activewear are resonating with customers expanding the brand's lifestyle reach and the brand nails both the merchandizing and marketing execution for the back to school and homecoming seasons which are especially important given that high school and college students comprise a significant portion of Princess Polly's customer base pr also continues to grow its direct to consumer channels and we're pleased that brand awareness continues to grow, driving new customers to the brand.

除了保利公主強化連身裙之外，保利公主今年早些時候推出的家居服和運動服等新品類也引起了消費者的共鳴，擴大了品牌的生活方式影響力，該品牌在返校季和返校季度的商品推銷和行銷執行上也做出了突出貢獻。很高興品牌知名度不斷提高，為品牌帶來了新客戶。

In addition to the continued strength of Princess Polly and pets and direct to consumer businesses. Both brands are resonating with customers on every new channel. They enter Princess Polly tested its first store last year in Century City L A and based on the success and popularity of the store. The brand opened two more stores in the third quarter in San Diego and Scottsdale.

除了波莉公主和寵物以及直接面向消費者的業務的持續強勢。這兩個品牌都在每個新管道上與客戶產生共鳴。去年，他們進入波莉公主在洛杉磯世紀城測試了第一家商店，並基於商店的成功和受歡迎程度。該品牌第三季在聖地牙哥和斯科茨代爾又開設了兩家店。

And just last week Princess Polly opened its first store on the east coast on Newbury Street in Boston.

就在上週，波莉公主在波士頓紐伯里街的東海岸開設了第一家商店。

Based on feedback from customers, the new Princess Poly stores are slightly larger, have more styles and additional fitting rooms to better showcase the brand and enhance the shopping experience.

根據顧客的回饋，新保利公主店面積稍大，款式更多，並增設試衣間，以更好地展示品牌並提升購物體驗。

I'm pleased to report that to date, all of the stores are performing ahead of plan and we're excited to open two more stores in California in the fourth quarter. This year, as I mentioned last week, we announced that Princess Pali will open its first store in New York City on Broadway in Soho in the beginning of next year with thrills to tap into the New York market and put Princess Paulie on the map in one of the largest cities and iconic streets in the world.

我很高興地報告，迄今為止，所有商店的業績均超出計劃，我們很高興在第四季度在加州再開設兩家商店。今年，正如我上週提到的，我們宣布帕利公主將於明年初在紐約蘇活區百老匯開設第一家商店，我們很高興能進軍紐約市場，並使保利公主在2019年名聲大噪。世界上最大的城市和標誌性街道之一。

The 8,000 square foot store spans two levels and will feature hundreds of the latest of Princess Poly styles and consistent with Princess Polly's other stores. The New York store will feature Hallmark experiential elements including social media worthy installations led displays, streaming, curated content and bespoke furniture pieces throughout creating a fully immersive Princess Polly shopping experience.

這家 8,000 平方英尺的商店橫跨兩層，將展示數百種最新的 Poly Princess 款式，並與 Princess Polly 的其他商店保持一致。紐約店將採用 Hallmark 體驗元素，包括值得社交媒體安裝的 LED 顯示器、串流媒體、精選內容和定製家具，打造完全身臨其境的波莉公主購物體驗。

In addition to our retail expansion efforts, our women's brands have also made significant strides in expanding their wholesale presence in a major milestone. We're thrilled to announce that based on the success of Pet and pop on Norton dotcom. The brand launched in 40 Nordstrom stores across the US.

除了我們的零售擴張努力外，我們的女裝品牌在擴大批發業務方面也取得了重大進展，達到了一個重要的里程碑。基於 Norton dotcom 上《Pet and pop》的成功，我們很高興地宣布這一消息。該品牌在美國 40 家 Nordstrom 商店推出。

And Princess Polly also debuted in 20 Nordam stores in October as it continues to expand its brand awareness through select wholesale partnerships.

波莉公主 (Princess Polly) 也在 10 月在 20 家 Nordam 商店首次亮相，透過精選的批發合作夥伴不斷擴大其品牌知名度。

These strategic moves not only enhance the brand's visibility but also unlock new channels for customers to discover these great brands and see and feel the product in real life.

這些策略舉措不僅提高了品牌的知名度，也為客戶開啟了發現這些偉大品牌並在現實生活中看到和感受產品的新管道。

This P&P began testing channel initiatives. We're seeing a double digit increase in pet and PS website traffic and importantly, organic traffic is outpacing pay channels which attributes to an increase in overall brand awareness.

此 P&P 開始測試通路計畫。我們看到寵物和 PS 網站流量以兩位數成長，重要的是，自然流量超過了付費管道，這歸因於整體品牌知名度的提高。

Shifting to our streetwear brands, Culture Kings, which is a premier streetwear destination continues to deliver growth in the US as a reminder, culture King's unique strength lies in its blend of premium in house designed apparel brands and curated third party partnerships particularly in footwear and headwear to deliver a complete street wear offering this quarter. I want to share some updates on the progress we're making scaling culture kings in house brands.

轉向我們的街頭服飾品牌，Culture Kings 是首屈一指的街頭服飾目的地，它繼續在美國實現成長，這提醒我們，Culture King 的獨特優勢在於其融合了優質的內部設計服裝品牌和精心策劃的第三方合作夥伴關係，特別是在鞋類和服裝領域。我想分享一些關於我們在自有品牌中擴大文化之王的進展的最新進展。

Since late 2023 we've been transforming culture Kings inhouse brands by adopting Princess Polly's proven data driven test and repeat strategy. Moving away from traditional merchandizing cycles, loiter, one of Culture King's flagships in house brands spearheaded this transition to test and repeat and the early results are impressive.

自 2023 年底以來，我們一直在透過採用 Princess Polly 經驗證的數據驅動測試和重複策略來改變 Kings 內部品牌的文化。擺脫傳統的銷售週期，Culture King 的自有品牌旗艦之一 Loiter 率先進行了這一向測試和重複的轉變，早期結果令人印象深刻。

We achieved triple digit revenue growth with outpaced margin dollar growth in the third quarter compared to last year. Powered by fresh, quick to market merchandise.

與去年相比，第三季我們實現了三位數的營收成長，利潤率成長。以新鮮、快速上市的商品為動力。

And we know that when we get the streetwear product, right? And that new drops regularly, we're able to market and showcase the brand that much better.

當我們購買街頭服飾產品時我們就知道這一點，對嗎？而且定期推出新產品，我們能夠更好地行銷和展示品牌。

Next week, culture Kings and Loiter will be partnering with the WWE for a full scale activation at the first ever Las Vegas Complex Con Leiter. And WWE will be collaborating on an exclusive capitale collection for the event and will create an on the ground activation of complexcon featuring a shoppable boot customization stations, superstar wrestler appearances and more.

下週，Culture Kings 和 Loiter 將與 WWE 合作，在拉斯維加斯首個 Complex Con Leiter 舉辦全面活動。WWE 將合作為該賽事打造獨家資本系列，並將創建一個現場激活的複雜活動，其中包括可購買的靴子定制站、超級明星摔跤手的出場等。

No, I provide more detail on the P&L before taking your questions for the third quarter. As I mentioned, net sales increased more than 6% to approximately 150 million compared to the same period last year driven by strength in our US business in which net sales increased 19.5% compared to the third quarter of last year.

不，在回答您對第三季的問題之前，我會提供有關損益表的更多詳細資訊。正如我所提到的，由於我們美國業務的強勁增長，淨銷售額與去年同期相比增長了 6% 以上，達到約 1.5 億美元，其中淨銷售額與去年第三季度相比增長了 19.5%。

As expected. This was slightly offset by softer sales in Australia and New Zealand which contracted 12% compared to a highly promotional third quarter of 2023 total orders for the third quarter were 1.84 million increasing 6.4% as compared to the third quarter last year.

正如預期的那樣。這被澳洲和紐西蘭的銷售疲軟所略​​微抵消，與2023 年第三季的大力促銷相比，澳洲和紐西蘭的銷售萎縮了12%，第三季的訂單總數為184 萬份，比去年第三季度增長6.4%。

As I mentioned, we're really pleased with our new customer acquisition and our strong retention.

正如我所提到的，我們對新客戶的獲取和強勁的保留感到非常滿意。

Our trailing 12 month active customer count rose 14% to approximately 4.05 million at the end of the third quarter.

截至第三季末，我們過去 12 個月的活躍客戶數量增加了 14%，達到約 405 萬人。

Our third quarter, average order value was $81 which was flat compared to the third quarter last year.

我們第三季的平均訂單價值為 81 美元，與去年第三季持平。

Turning out profitability gross margin expanded 260 basis points in the third quarter to 58% compared to 55.4% in the same period last year, driven by strong product newness and full price selling.

由於強勁的產品新穎性和全價銷售，第三季獲利毛利率擴大了 260 個基點，達到 58%，而去年同期為 55.4%。

As I mentioned earlier, this was the strongest gross margin we've delivered in over three years and I'm very proud of the team's continued hard work to achieve this milestone.

正如我之前提到的，這是我們三年多來實現的最高毛利率，我為團隊為實現這一里程碑而持續努力而感到非常自豪。

Selling expenses were 41.9 million compared to 36.7 million in the third quarter of 2023. Selling expenses were 27.9% of net sales compared to 26% in the same period last year. Due primarily to the impact from growing marketplace initiatives and additional stores marketing expenses in the quarter were 19.3 million compared to 18.5 million in the third quarter of 2023.

銷售費用為 4,190 萬美元，而 2023 年第三季為 3,670 萬美元。銷售費用佔淨銷售額的 27.9%，去年同期為 26%。主要由於不斷增長的市場計劃和額外商店行銷費用的影響，本季的行銷費用為 1,930 萬美元，而 2023 年第三季為 1,850 萬美元。

As a percentage of net sales marketing expenses leveraged 20 basis points to 12.9% compared to 13.1% in the third quarter of 2023.

行銷費用佔淨銷售額的百分比上升了 20 個基點，達到 12.9%，而 2023 年第三季為 13.1%。

General and administrative expenses were 27.8 million compared to 24.6 million in the third quarter of 2023.

一般及管理費用為 2,780 萬美元，而 2023 年第三季為 2,460 萬美元。

As a percentage of net sales G&A expenses increased to 18.6% from 17.5% in the third quarter of last year, general and administrative costs, deleverage year over year due to a $2 million accrual in connection with a pending legal matter.

總務及行政費用佔淨銷售額的百分比從去年第三季的 17.5% 上升至 18.6%，由於與未決法律事項相關的 200 萬美元應計費用，一般和行政成本、去槓桿化逐年下降。

Please note that the legal accrual is reflected in G&A since it is a GAAP measure but was excluded as a non routine item from adjusted EBIT or nongaap profitability measure.

請注意，法定應計費用反映在一般管理費用中，因為它是公認會計準則衡量標準，但作為非常規項目被排除在調整後息稅前利潤或非公認會計準則盈利衡量標準之外。

We delivered adjusted EBITDA of 8.2 million compared to 4.7 million representing a 75% increase from the same period. Last year. Ahead of expectations adjusted even our margin for the third quarter of 2024 increased 220 basis points to 5.5% compared to 3.3% in the same period last year.

我們的調整後 EBITDA 為 820 萬美元，而同期為 470 萬美元，成長了 75%。去年。甚至我們 2024 年第三季的利潤率也超出預期調整了 220 個基點，達到 5.5%，而去年同期為 3.3%。

Turning now to the balance sheet, we ended the quarter with 23.1 million in cash and cash equivalents that totaled 111.9 million. At the end of the third quarter, we ended the quarter with 106 million in inventory. An increase of 6% compared to a year ago, we strategically increased our inventory to meet the demand across multiple channels from this to expand the wholesale initiatives.

現在轉向資產負債表，本季末我們的現金和現金等價物總計 1.119 億美元，為 2,310 萬美元。截至第三季末，我們的庫存為 1.06 億。與一年前相比增加了6%，我們策略性地增加了庫存，以滿足多通路的需求，由此擴大了批發力度。

Additionally, as momentum continues to accelerate, we're chasing into demand to position us well, for the critical holiday season, we're very confident with the freshness and quality of our imagery and feel we are well prepared as we enter the holiday season.

此外，隨著勢頭持續加速，我們正在追逐需求，為我們做好準備，在關鍵的假期季節，我們對影像的新鮮度和品質非常有信心，並認為在進入假日季節時我們已做好充分準備。

A quick update on our stock repurchase program in the third quarter, we repurchased 3,380 shares for a total cost of approximately $83,000.

快速更新第三季的股票回購計劃，我們回購了 3,380 股股票，總成本約為 83,000 美元。

As of the end of the quarter, we have approximately $1.6 million remaining in our share repurchase authorization.

截至本季末，我們的股票回購授權尚剩餘約 160 萬美元。

Looking at the head at the remainder of 2024 we're energized by the momentum across our brands and the growth opportunities across our portfolio that you heard about this afternoon.

展望 2024 年剩餘時間，我們對您今天下午聽說的我們品牌的勢頭以及我們產品組合的成長機會感到振奮。

We are raising our full year outlook and anticipate delivering between 567 to 572 million in net sales for the full year.

我們正在上調全年預期，預計全年淨銷售額將在 5.67 至 5.72 億美元之間。

We also anticipate gross margins of approximately 57% and we're anticipating selling expenses to be approximately 27 27% of net sales and marketing expenses of approximately 12.5%.

我們也預期毛利率約為 57%，銷售費用約為淨銷售費用的 27-27%，行銷費用約為 12.5%。

We expect G and a expense of approximately 100 million for the full year of 2024 for the year. We expect that Justin IDA of between 22 and 23 million weighted average diluted share count of 10.6 million capital expenditures of between 10 to 12 million and an effective tax rate of a negative 4% in closing our performance. This quarter has reinforced my conviction in our company strategic road initiatives, our ability to execute and the potential ahead.

我們預計 2024 年全年 G 和費用約為 1 億。我們預計 Justin IDA 的加權平均稀釋後股份數量為 1,060 萬股，資本支出為 1,000 至 1,200 萬股，有效稅率為負 4%，以結束我們的業績。這個季度增強了我對公司策略道路計劃、執行能力和未來潛力的信心。

We're really encouraged by the progress we have made over the last two years, which is driving strong top and bottom line growth and momentum are more optimistic than ever about the future of A K A brands. As we continue to grow our brands, expand our market reach and tap into new segments of our total addressable market with our proven business model and our talented teams executing at the highest level. I'm confident in our ability to deliver exceptional value for our shareholders.

我們對過去兩年的進步感到非常鼓舞，這推動了營收和利潤的強勁成長，而且我們對 A K A 品牌的未來比以往任何時候都更加樂觀。隨著我們不斷發展我們的品牌，擴大我們的市場覆蓋範圍，並利用我們成熟的商業模式和最高水準的執行團隊，開拓我們整個潛在市場的新領域。我對我們為股東創造卓越價值的能力充滿信心。

Thank you for your continued support and we look forward to updating you on our progress.

感謝您一直以來的支持，我們期待向您通報我們的最新進展。

Now, I will open up the call to your questions.

現在，我將打開電話詢問大家的問題。

Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.

謝謝。現在可以提問。如果您已撥入並想提問。請按下電話鍵盤上的星號一舉手並加入隊列。

If you would like to withdraw your question, simply press star one again.

如果您想撤回問題，只需再次按星號一即可。

If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your questions just a moment while we compile the roster.

如果您被要求提問並且正在透過裝置上的揚聲器收聽，請在我們編制名單時拿起您的聽筒，並確保您的手機在提問時沒有處於靜音狀態。

Your first question comes from the line of Ashley Owens of Keybanc. Your line is open.

你的第一個問題來自 Keybanc 的 Ashley Owens。您的線路已開通。

Hi, good afternoon. Thanks for taking our questions. Maybe just to start with the guide for Q4 help us unpack some of the puts and takes here how we should be thinking about the balance between AOV and order growth and then just any color on current trends quarter to date.

嗨，下午好。感謝您回答我們的問題。也許從第四季度的指南開始，可以幫助我們解開一些看跌期權，並在這裡了解我們應該如何考慮 AOV 和訂單增長之間的平衡，然後是季度迄今為止當前趨勢的任何顏色。

Hey, thanks Ashley. And yeah, I think, you know, as we head into Q4, I think we're certainly, like I said, we're really energized by the performance we've seen over the last couple of quarters that we're continue to be overall back to growth. And I think really a standout for us is that, is that 19.5% growth in the US coupled with, you know, gross margins up 260 basis point and you know, increasing ebida 75% year over year to $8 million. And it just really great performance as we, as we think about Q4, you know, we feel really good about the composition quality of the inventory as we head into the quarter. And for us from a guide perspective, you know, expecting the same trends we're seeing on the regional growth rates that we've seen now across kind of Q3 and Q2. We're expecting those to continue into Q4, you know, as it relates to A OV and the AOV in orders, I think, you know, a slight increase in a OV year over year and probably more of the growth coming from order volume year over year. And I think that's kind of how we feel the business is performing and feeling good as we head into the Q4 period.

嘿，謝謝阿什利。是的，我認為，你知道，當我們進入第四季度時，我認為我們當然，就像我說的，我們對過去幾個季度所看到的表現感到非常振奮，我們將繼續整體恢復成長。我認為對我們來說真正突出的是，美國市場成長了 19.5%，毛利率提高了 260 個基點，稅息折舊攤提前利潤年增 75%，達到 800 萬美元。當我們考慮第四季度時，它的表現非常出色，你知道，當我們進入本季度時，我們對庫存的構成品質感覺非常好。從指導的角度來看，您知道，預計我們在第三季和第二季看到的區域成長率趨勢相同。我們預計這些情況將持續到第四季度，因為它與訂單中的 AOV 和 AOV 有關，我認為 OV 同比略有增加，並且可能更多的增長來自訂單量年復一年。我認為這就是我們在進入第四季時對業務表現和感覺良好的感覺。

Okay. Got it. That's super helpful. Just a follow up, you know, as we think about additional marketplace and wholesale expansion going well, Pedal and P and you increase into some physical doors there. Would you say you're open to continued expansion? And is this a strategy you're assessing for any of your other brands in the portfolio? Thanks.

好的。知道了。這非常有幫助。只是後續行動，你知道，當我們考慮額外的市場和批發擴張進展順利時，Pedal 和 P 以及你在那裡增加了一些實體門。您是否願意繼續擴張？您正在為產品組合中的其他品牌評估此策略嗎？謝謝。

Yeah, thanks, Ashley. Look, I think we're, we're really happy with the performance and the work all of the different brands are doing to test new omni channel opportunities. And certainly, I think Petal and P is one of the standouts that, you know, the test that they did on and Nordstrom dotcom performed really well. They put product on there in February of this year. You saw really strong success and with that Nordstrom have asked them to test in 40 doors in the Q4 period. So I think we're really looking forward to seeing the results there and, you know, hopefully expanding on that, great to see Polly and also in 20 doors for Nordstrom, I think, look, we're open to, like we said in our strategy, you know, putting our product in front of customers wherever they are and that's leaning into testing, you know, marketplace wholesale opportunities. And also I think the, the what Princess Polly is doing in opening new stores, you know, one store last year, they have six by the end of the year. And I think just seeing really strong success there and coming from just, you know, sales, the delivery, but also introducing the brand to new customers with over 30% of the customers in the stores are new to Princess.

是的，謝謝，阿什利。聽著，我認為我們對所有不同品牌為測試新的全通路機會所做的表現和工作感到非常滿意。當然，我認為 Petal 和 P 是其中的佼佼者，他們在 Nordstrom dotcom 進行的測試中表現非常出色。他們在今年二月將產品放在那裡。您看到了巨大的成功，Nordstrom 要求他們在第四季度對 40 扇門進行測試。所以我認為我們真的很期待看到那裡的結果，你知道，希望能擴大這一點，很高興看到Polly 以及Nordstrom 的20 個大門，我想，看，我們對此持開放態度，就像我們說的那樣在我們的策略中，你知道，將我們的產品放在客戶面前，無論他們身在何處，這傾向於測試市場批發機會。我還認為，波莉公主在開設新店所做的事情，你知道，去年有一家店，到今年年底他們已經有六家店了。我認為，在那裡看到了巨大的成功，不僅來自於銷售、交付，而且還向新顧客介紹了該品牌，商店裡超過 30% 的顧客都是 Princess 的新顧客。

Really appreciate the color there. I'll pass it.

真的很欣賞那裡的顏色。我會通過它。

Along.

沿著。

Your next question comes from the line of Dana Telsey of the Telsy Group. Your line is open.

您的下一個問題來自 Telsy 集團的 Dana Telsey。您的線路已開通。

Hi, good afternoon. As you think about the potential for tariffs coming forward, going forward. Can you elaborate on what percent of your goods are directly imported? Including how much comes from China? If there is a tariff, how do you offset it, whether it's changes in sourcing or pricing? Thank you.

嗨，下午好。當你考慮未來關稅的潛力時。您能否詳細說明一下你們的貨物有多少比例是直接進口的？其中有多少來自中國？如果存在關稅，您如何抵消它，無論是採購還是定價的變化？謝謝。

Yeah, thanks.

是的，謝謝。

Dana. Look, the majority of our, our product does come in from China and we are, we're actively working with our manufacturing partners to reduce the exposure that we have there. You know, that will take some time. And you know, we are very fortunate with the test and repeat model that we have, you know, the brands are pretty much currently buying for for Q1 next year and also, you know, across Petal and Pop Princess Polly and minimal, pretty much 100% of the product we have is exclusive to us. And as, as we think about culture kings, about 50% of it is exclusive to us. So, you know, we feel that if we need to take pricing actions, we can and but look, we're very focused on reducing our concentration within China. We have a very, you know, nimble team of, of you know, really strong performers and you know, they're going to react and continue to adjust as we get clarity on any changes in the area.

達納。看，我們的大部分產品確實來自中國，我們正在積極與我們的製造合作夥伴合作，以減少我們在中國的暴露。你知道，這需要一些時間。你知道，我們非常幸運，擁有測試和重複模型，你知道，這些品牌目前幾乎都在為明年第一季購買，而且，你知道，還有 Petal 和 Pop Princess Polly 以及極簡，幾乎我們擁有的產品100% 是我們獨有的。當我們想到文化之王時，大約 50% 的內容是我們獨有的。所以，你知道，我們認為，如果我們需要採取定價行動，我們可以，但我們非常注重減少在中國的集中度。我們有一支非常、你知道、靈活的團隊，由非常強大的表演者組成，你知道，當我們清楚地了解該領域的任何變化時，他們將做出反應並繼續調整。

And can you just talk a little bit on the wholesale channel? How is that doing? What are you seeing in terms of growth there? And how do you think of full price selling in the margins on that distribution channel? Thank you.

能簡單談談批發管道嗎？怎麼樣？您認為那裡的成長情況如何？您如何看待該通路上的全價銷售？謝謝。

Sure. Thanks Dana. Yeah, I think, look.

當然。謝謝達納。是的，我想，看看。

We're, we're really happy with the success that we've seen across all of the brands on these on the channel initiatives. And I think, you know, really coming, you know, a nice part of that 19.5% growth we saw in the US, the expanding gross margins up 260 basis points and that, you know, the great delivery of Ebida.

我們對所有品牌在通路計畫上所取得的成功感到非常高興。我認為，你知道，真正即將到來的是我們在美國看到的 19.5% 的增長，毛利率擴大了 260 個基點，以及 Ebida 的出色交付。

At the moment All of the brands are performing well and in all of the channels they're in right, direct to consumer wholesale marketplace and stores and you know, it's really strong performance and full price selling. I feel the, you know, the inventory and that we have on our own, direct to consumer sites in these channels is just performing really, really well and we're continuing to chase into demand across the brands and across the channels. And you know, expecting that to see that again with some nice strong Q4 performance like we've seen over the last couple of quarters.

目前，所有品牌都表現良好，並且在所有正確的管道中，直接面向消費者批發市場和商店，你知道，這確實是強勁的表現和全價銷售。我覺得，你知道，我們自己在這些管道中直接面向消費者的網站的庫存表現非常非常好，我們將繼續追逐跨品牌和跨渠道的需求。你知道，預計第四季度會再次出現這種情況，就像我們在過去幾季看到的那樣。

Thank you.

謝謝。

Your next question comes from the line of Eric Beder of SCC Research. Your line is open.

您的下一個問題來自 SCC Research 的 Eric Beder。您的線路已開通。

Good afternoon. Congratulations.

午安.恭喜。

I want to talk about the store. So you anniversaried the Century City location in September. You know, what is kind of the learning experience from that and how have you transported that into the rest of the chain and the newer stores here?

我想談談商店。九月，您為世紀城的開幕週年紀念日。您知道，從中獲得了什麼樣的學習經驗？

Yeah, thanks, Eric. Look.

是的，謝謝，艾瑞克。看。

I think we're really, we're really happy with the performance we're seeing across all of the stores. You know, we opened our first one in Century City last year. And you know, in Q3, we opened in Scottsdale and San Diego. And I would say, and over the last couple of weeks, we opened in Boston, I would say all of the new openings performing ahead of expectations from the, from all of our metrics.

我認為我們真的對所有商店的表現感到非常滿意。你知道，我們去年在世紀城開了第一家店。你知道，在第三季度，我們在斯科茨代爾和聖地牙哥開業。我想說的是，在過去的幾周里，我們在波士頓開業了，我想說的是，所有新開業的酒店的表現都超出了我們所有指標的預期。

You know, I think what we're seeing is, well, I think first.

你知道，我認為我們首先看到的是。

Firstly, you know, people love the brand Princess Body. It just performs really, really well and the fact that we can give them know that in real life experience with the product where they can touch and feel it is really resonating with their customers. And it's amazing the lines that they have for the, for the new openings of the store and that demand that's there.

首先，你知道，人們喜歡 Princess Body 這個品牌。它的表現非常非常好，事實上我們可以讓他們知道，在現實生活中，他們可以觸摸和感受到產品，這確實能引起客戶的共鳴。令人驚訝的是，他們為新開的商店和那裡的需求排隊了。

And you know, we are in the, in the new openings.

你知道，我們正處於新的空缺中。

They are bigger than that. The Century City Store, Century City is about 3,800 square foot and the new stores are more around that 5,000 square foot. And we're certainly seeing as we put more product in front of customers and more of that breadth of the range that they can see online, they're reacting to it really, really positively. And we're also able to do more in just different categories and you know, more accessories, more footwear and other categories with that additional space. So I think we can see that look, we can see the model is working really well. Customers are responding to it and we feel there's just a lot of opportunity for for Princess Poly to continue to, you know, put their customers or put their product in front of more customers and broaden their omni channel opportunities.

它們比那更大。世紀城世紀城店面積約 3,800 平方英尺，新店面積約 5,000 平方英尺。我們當然看到，當我們向客戶展示更多的產品以及他們可以在網路上看到的更廣泛的產品範圍時，他們對此的反應非常非常積極。我們還能夠在不同的類別中做更多的事情，你知道，更多的配件、更多的鞋類和其他類別，以及額外的空間。所以我認為我們可以看到這個外觀，我們可以看到這個模型運行得非常好。客戶對此做出了回應，我們認為保利公主有很多機會繼續將他們的客戶或他們的產品展示給更多客戶，並擴大他們的全通路機會。

Are the two California stores going to be open, I guess in the next week or two to take full advantage of the holiday?

我猜這兩家加州商店會在接下來的一兩週內開門營業，以充分利用假期嗎？

You know, we're working hard to get them open. I think.

你知道，我們正在努力讓它們開放。我認為。

You know, we just opened Boston last week. So the team are on to the next two and you know, it'll be, it'll be touch and go before they get them open before Thanksgiving. But if not, it will be, it will be really quickly afterwards.

你知道，我們上週才在波士頓開業。因此，團隊正在準備接下來的兩個項目，你知道，在感恩節前開放之前，這將是一個很艱難的過程。但如果不是的話，也會的，之後會很快。

Okay, I had a question about culture kings with the test and repeat, you mentioned the brand and what, how, what percent of culture kings will work with the test and repeat model and how should we be thinking about that and the opportunity for it going forward. Thank you.

好的，我有一個關於測試和重複的文化國王的問題，你提到了品牌以及文化國王將使用測試和重複模型的內容、方式、百分比以及我們應該如何考慮這一點及其機會繼續前進。謝謝。

Yeah, thanks, Eric. You know, really happy.

是的，謝謝，艾瑞克。你知道嗎，真的很高興。

With the first, with the, with the progress the team that culture kings are making and that, you know, the team in the US, the team in Australia and the culture kings in the US continues to do really well and you know, we're making good progress on getting back to where we feel we should be in the australian market. And so for culture Kings, about 50% of their product is first party exclusive brands that they have, they have developed in house. And I would say within that all of that product can be on that test and repeat model. And we see the strength of that test and repeat model across the other brands. And we also see that the strength of it as we move more and more of the brands and the assortment for culture Kings onto that model. And you know, I would say leiters certainly for us, the first example and the best example of the success there of over 100% comp this year, you know, and even more from a gross margin dollar perspective. And so we can certainly see, you know, big improvements there and that will continue across all of the culture kings first party assortment and about 50% of their revenue.

首先，隨著文化之王團隊的進步，你知道，美國的團隊、澳洲的團隊和美國的文化之王繼續做得很好，你知道，我們在回到我們認為在澳洲市場應有的地位方面取得了良好進展。因此，對於文化國王來說，他們大約 50% 的產品是他們擁有的、他們內部開發的第一方獨家品牌。我想說的是，所有產品都可以在該測試和重複模型上進行。我們看到了其他品牌的測試和重複模型的優勢。當我們將越來越多的品牌和文化國王的品種轉移到該模型上時，我們也看到了它的力量。你知道，我肯定會說，對我們來說，這是今年成功超過 100% 的第一個例子，也是最好的例子，你知道，甚至從毛利率的角度來看更是如此。所以我們當然可以看到，你知道，那裡有很大的改進，並且這種改進將在文化之王的所有第一方產品中持續下去，並佔其收入的約 50%。

Great Thank you.

非常感謝。

With no further questions. This concludes our Q&A session and today's conference call, you may now disconnect.

沒有進一步的問題。我們的問答環節和今天的電話會議到此結束，您現在可以掛斷電話了。