Bath & Body Works Inc (BBWI) 2024 Q3 法說會逐字稿

Good morning. My name is Melissa, and I will be your conference call operator today. At this time, I would like to welcome everyone to Bath & Body Works' third-quarter 2024 earnings conference call. Please be advised that today's conference is being recorded. (Operator Instructions)

早安.我的名字是梅麗莎，今天我將擔任您的電話會議接線生。現在，我歡迎大家參加 Bath & Body Works 2024 年第三季財報電話會議。請注意，今天的會議正在錄音。（操作員指令）

I will now turn the call over to Luke Long, Vice President of Investor Relations. Luke, you may begin.

現在我將電話轉給投資者關係副總裁 Luke Long。盧克，你可以開始了。

Good morning, and welcome to Bath & Body Works' third-quarter 2024 earnings conference call. Joining me on the call today are Gina Boswell, Chief Executive Officer; and Eva Boratto, Chief Financial Officer.

早安，歡迎參加 Bath & Body Works 2024 年第三季財報電話會議。今天與我一起參加電話會議的還有執行長 Gina Boswell；以及財務長 Eva Boratto。

In addition to this call and this morning's press release, we have posted a slide presentation on our website that summarizes the information in these prepared remarks, in addition to providing some related facts and figures regarding our operating performance and guidance. As a reminder, some of the comments today may include forward-looking statements related to future events and expectations. For factors that could cause the actual results to differ materially from these forward-looking statements, please refer to this morning's press release, as well as the risk factors in Bath & Body Works 2023 Form 10-K and our quarterly report on Form 10-Q, which will be filed this week.

除了這次電話會議和今天上午的新聞稿之外，我們還在我們的網站上發布了幻燈片演示，總結了這些準備好的發言中的信息，並提供了一些有關我們的運營業績和指導的相關事實和數據。提醒一下，今天的一些評論可能包括與未來事件和預期相關的前瞻性陳述。對於可能導致實際結果與這些前瞻性陳述有重大差異的因素，請參閱今天上午的新聞稿，以及 Bath & Body Works 2023 年 10-K 表和我們 10-K 表季度報告中的風險因素。於本週提交。

Today's call also contains certain non-GAAP financial measures. Please refer to this morning's press release and supplemental materials for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measure.

今天的電話會議也包含某些非 GAAP 財務指標。請參閱今天早上的新聞稿和補充資料，以了解有關此類指標的重要揭露，包括與最具可比性的 GAAP 財務指標的對帳。

Fiscal 2023 was a 53-week year. To provide the best understanding of the business, all category sales results, year-to-date market share data, loyalty metrics, and selling metrics discussed during the call are on a comparable calendar basis, which is the 13 weeks ended November 2, 2024, versus the 13 weeks ended November 4, 2023. All other results discussed are on a reported basis, which is the 13 weeks ended November 2, 2024, versus the 13 weeks ended October 28, 2023.

2023 財政年度共 53 週。為了更了解業務狀況，電話會議中討論的所有品類銷售業績、年初至今的市佔率數據、忠誠度指標和銷售指標均以可比較日曆為基礎，即截至 2024 年 11 月 2 日的 13 週，而截至2023 年11 月4 日的13 週則是如此。討論的所有其他結果均以報告為基礎，即截至 2024 年 11 月 2 日的 13 週，而非截至 2023 年 10 月 28 日的 13 週。

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

說完這些，我會把電話轉給吉娜。

Thank you, Luke, and good morning, everyone. We appreciate you joining us. I'll start with a high-level review of our third-quarter results, including the customer behavior we're observing, the actions we're taking to drive growth, and the progress we've made against our strategic priorities. Then, Eva will walk through our financials in more detail.

謝謝你，盧克，大家早安。感謝您的加入我們。我將首先對我們的第三季業績進行高層回顧，包括我們觀察到的客戶行為、我們為推動成長而採取的行動以及我們在策略重點方面取得的進展。然後，Eva 將更詳細地介紹我們的財務狀況。

We delivered a strong quarter. Net sales were $1.6 billion, up 3% versus the prior year, and earnings per diluted share were $0.49. We beat our guidance on both the top and bottom line, and we are raising our full-year guidance to fully reflect this outperformance.

我們本季業績表現強勁。淨銷售額為 16 億美元，較上年增長 3%，每股攤薄收益為 0.49 美元。我們的營收和淨利潤都超出預期，我們正在上調全年預期，以充分反映這一優異表現。

I've spent a lot of time in our stores over the past few months, and I've seen firsthand how customers are responding positively to our seasonal merchandise and storytelling. Witnessing our beautifully arranged floor sets, along with our store associates' unique ability to meet our customers' needs, is always a great reminder of the strength of our retail experience and the team that enables it.

過去幾個月我花了很多時間在我們的商店，我親眼目睹了顧客對我們的季節性商品和故事的積極反應。見證我們精心佈置的店面佈景，以及我們的店員滿足顧客需求的獨特能力，總能讓我們深刻感受到我們的零售經驗和團隊的實力。

Our continued product innovation, coupled with improved demand generation, the compelling value of our products, and our team's strong execution, drove positive store traffic and conversion for the quarter. Our store traffic exceeded the third-party benchmarks we track. Each of our categories -- body care, home fragrance, and soaps and sanitizers -- grew low-single digits year over year, and year to date, we maintained our overall leading unit market share. And with this quarter's results, our net sales performance, adjusted for calendar shifts, has sequentially improved each quarter during 2024.

我們持續的產品創新，加上需求產生的改進、我們產品的引人注目的價值以及我們團隊強大的執行力，推動了本季度的門店客流量和轉換率的積極增長。我們的商店流量超過了我們追蹤的第三方基準。我們的每個類別——身體護理、家居香氛、肥皂和消毒劑——都比去年同期實現了低個位數的增長，今年迄今為止，我們保持了整體領先的單位市場份額。根據本季的業績，我們的淨銷售業績（經日曆變化調整後）在 2024 年每季都持續改善。

Our strategic investments and focused execution of our 5E strategy are driving momentum toward long-term profitable growth. As a reminder, the 5Es of our strategy are: elevating the Bath & Body Works brand and core products, extending our reach to new adjacencies and markets, engaging with customers in new ways, enabling a more seamless omni-channel experience, and finally, enhancing operational excellence and efficiency. All of this is underpinned by the hard work of our talented associates.

我們的策略投資和對 5E 策略的重點執行正在推動長期獲利成長的勢頭。需要提醒的是，我們的策略有 5E 原則：提升 Bath & Body Works 品牌和核心產品，拓展新領域和新市場，以新方式與客戶互動，實現更無縫的全通路體驗，最後，提高卓越運營和效率。所有這一切都歸功於我們才華橫溢的同事的辛勤工作。

We made progress on each of the 5Es in the quarter, starting with elevating the brand and core products. We are innovating across our portfolio and are continually raising the quality of our products, including updating the ingredients, packaging, and fragrances to meet and create customer demand.

本季度，我們在 5E 方面都取得了進展，首先是提升品牌和核心產品。我們正在對我們的產品組合進行創新，並不斷提高我們產品的質量，包括更新成分、包裝和香料，以滿足和創造客戶需求。

Our home fragrance performance in the quarter was fueled by growth in the candle business, as we drove targeted marketing investments, coupled with a successful new promotional event. The team strategically timed this new event to align with this year's holiday calendar. We executed well and met the customer mindset.

由於我們推動了有針對性的行銷投資，加上成功的新促銷活動，本季我們家居香氛的業績受到蠟燭業務成長的推動。該團隊策略性地安排這次新活動的時間以與今年的假期日曆一致。我們執行得很好並且滿足了客戶的想法。

As we noted when we reported our Q2 results, it is a competitive market with a value-conscious consumer, a trend that has continued. And as the category leader in home fragrance, we are reasserting our differentiation as America's most-loved candle brand -- through storytelling that conveys the quality and value of our products, through a compelling assortment at a range of price points, and by utilizing our speed and agility to meet the market where it is, driving unit share gains in the quarter. And while normalization of the candle market has impacted us this year, on a unit basis, it has moderated each quarter and we do not expect it to have a material impact on our business in 2025 and beyond.

正如我們在報告第二季業績時所指出的那樣，這是一個競爭激烈的市場，消費者註重價值，而且這一趨勢一直持續。作為家居香氛領域的領導者，我們正在重申我們作為美國最受歡迎蠟燭品牌的差異化——透過講述我們產品的品質和價值，透過以不同價格點提供引人注目的產品組合，透過利用我們的速度和敏捷性來滿足市場現狀，推動本季度單位份額的成長。雖然蠟燭市場的正常化今年對我們產生了影響，但從單位數量來看，它每個季度都有所緩和，我們預計它不會對我們 2025 年及以後的業務產生重大影響。

Fragrance is core to who we are, and we drove growth in body care by delivering compelling fragrances. For example, customers responded positively to the full North American rollout of Everyday Luxuries. This helped drive double-digit growth in fine fragrance mist during the quarter. Everyday Luxuries is connecting with a younger customer, and as a platform, it has the potential to drive growth for years to come.

香水是我們的核心，我們透過提供引人注目的香水來推動身體護理業務的成長。例如，客戶對於在北美全面推出的Everyday Luxuries產品反應正面。這推動了本季精細香水噴霧銷量達到兩位數成長。Everyday Luxuries 正在與更年輕的客戶建立聯繫，作為一個平台，它有潛力在未來幾年推動成長。

Body care also benefited from our on-trend single fragrance launches of Vanilla Romance and Platinum. And we're excited about the launch of our latest cross-category fragrance, Perfect in Pink, which we debuted in the final week of the third quarter. Soaps and sanitizers growth was driven by strength in core sanitizers, moisturizing sanitizer forms, and a new 1-ounce spray.

身體護理產品也受益於我們推出的流行單一香水香草浪漫和白金。我們很高興推出最新的跨類別香水“Perfect in Pink”，該產品於第三季的最後一周首次亮相。肥皂和消毒劑的增長得益於核心消毒劑、保濕消毒劑形式以及新型 1 盎司噴霧劑的強勁增長。

I also want to spend a moment on collaborations. As a reminder, collaborations are a key element of our strategy to drive growth in our core products. They deliver highly differentiated storytelling that generates top-of-mind brand awareness with existing customers and attracts new customers. Our selective approach to collaborations not only drives traffic, it also enhances our brand's cultural relevancy.

我還想花一點時間討論合作。提醒一下，合作是我們推動核心產品成長策略的關鍵要素。他們提供高度差異化的故事敘述，在現有客戶中建立首要的品牌意識，並吸引新客戶。我們選擇性的合作方式不僅能帶來流量，還能增強我們品牌的文化相關性。

In the third quarter, we launched part two of our Stranger Things collaboration. This was primarily focused on the home fragrance category and generated buzz around our Halloween floor set, which exceeded last year. We also announced our Emily in Paris cross-category collaboration. This kicked off with a successful early-access event at the start of Q4, and the full launch is just around the corner.

第三季度，我們推出了《怪奇物語》合作電影的第二部分。這主要集中在家居香氛類別，並引發了圍繞我們的萬聖節地板套裝的轟動，超過了去年。我們也宣布了《艾米莉在巴黎》跨類別合作。這款產品在第四季初的成功搶先體驗活動上拉開了序幕，全面發布即將到來。

On the second pillar of our 5E strategy, extending our reach, we are growing our newer category adjacencies, opening additional store locations, and expanding in international geographies to drive growth. Adjacencies are an opportunity to expand and diversify our product portfolio, applying our fragrance expertise to large addressable markets.

在我們的 5E 策略的第二個支柱——擴大我們的覆蓋範圍——中，我們正在發展新的類別鄰接關係，開設更多的門市，並在國際地區擴張以推動成長。鄰近性是我們擴大和多樣化產品組合的機會，可將我們的香水專業知識應用於廣泛的潛在市場。

We evaluate adjacent category performance based on their incrementality to the basket, repeat purchase rates, and ability to attract new customers. Our adjacent categories of men's, hair, lip, and laundry continue to perform well and, year to date, represent approximately 10% of our business, with potential to become a larger percentage of our mix in 2025 and beyond.

我們根據相鄰類別對購物籃的增量、重複購買率以及吸引新客戶的能力來評估其表現。我們的相鄰類別，如男士、美髮、唇部和洗衣產品繼續表現良好，年初至今，約占我們業務的 10%，並且有可能在 2025 年及以後佔據我們產品組合的更大比例。

I'll share a few of the highlights from the quarter. Today, men's, which is included in our body care business, is our largest adjacency, and we see significant opportunity as we continue to increase awareness. Momentum in the men's business remains strong this quarter as we continue to evolve our marketing and launch new fragrances. For example, customers responded well to our new Vanilla Noir fragrance.

我將分享本季的一些亮點。如今，男士護理產品是我們最大的相鄰業務，我們將其納入身體護理業務範疇，隨著我們不斷提高知名度，我們看到了巨大的機會。由於我們持續改善行銷策略並推出新的香水，本季男士業務依然保持強勁勢頭。例如，顧客對我們新款 Vanilla Noir 香水反應良好。

In lip, which is also included in our body care business, you can expect to see additional launches of exciting products like gloss and lipstick, which we're confident will continue to excite younger customers. In laundry, which is included in home fragrance, we completed the full US rollout in September. We believe it is an exciting platform for long-term growth that capitalizes on our differentiated fragrance expertise.

唇部護理也包含在我們的身體護理業務中，您可以期待看到更多令人興奮的產品推出，例如唇彩和口紅，我們相信這些產品將繼續讓年輕的顧客感到興奮。對於居家香氛所包含的洗衣產品，我們於 9 月完成了在美國的全面推廣。我們相信，這是一個令人興奮的長期成長平台，可以充分利用我們差異化的香水專業知識。

Moving to real estate, we continue to reshape the portfolio and move stores off-mall. Approximately 55% of our North American stores are in off-mall locations, and the portfolio remains very healthy. International markets are an attractive pillar of our strategy. Today, international represents approximately 5% of our net sales, and there's significant long-term opportunity as we enter new markets and expand in existing markets.

轉向房地產，我們繼續重塑投資組合並將商店遷出購物中心。我們在北美的門市約有 55% 位於非購物中心地點，而且組合仍然非常健康。國際市場是我們策略的一個有吸引力的支柱。如今，國際市場約占我們淨銷售額的 5%，隨著我們進入新市場並在現有市場擴張，存在著巨大的長期機會。

System-wide retail sales grew double digits in Q3 in the areas not affected by the war in the Middle East. While our business continues to be pressured in the regions affected by the war, where we saw system-wide retail sales decline double digit, the year-over-year impact began to moderate in October. At the end of the third quarter, we celebrated the opening of our 500th international store in London. Our partner store openings this year remain on track, with approximately 50 net new stores this year.

在未受中東戰爭影響的地區，第三季全系統零售額實現了兩位數成長。雖然我們的業務在受戰爭影響的地區繼續承受壓力，全系統零售額出現兩位數下降，但年比影響在 10 月開始有所緩和。第三季末，我們慶祝了第500家國際門市在倫敦開幕。我們今年的合作夥伴商店開幕計畫保持正常進行，今年淨增加約 50 家新店。

Next is our focus on engaging with customers and enabling a seamless omni-channel experience. Our teams have made strides in marketing, loyalty, and technology. We are employing multi-year strategies in these areas that are key enablers of sustainable long-term growth, and these efforts are already having a positive impact on the business.

接下來我們的重點是與客戶互動並實現無縫的全通路體驗。我們的團隊在行銷、忠誠度和技術方面取得了長足進步。我們在這些領域實施多年期策略，這些領域是實現長期可持續成長的關鍵推動因素，這些努力已經對業務產生了積極影響。

For example, during Q3, we achieved record-high customer retention rates and an improvement in attracting new-to-brand customers. We're especially encouraged by the strong growth within our highest value customer segment called the fragrance fashionistas. This group, which purchases up to 30 fragrances a year, has grown every quarter this year.

例如，在第三季度，我們的客戶保留率創下了歷史新高，並且在吸引新品牌客戶方面也取得了進展。我們最高價值的客戶群－香水時尚達人的強勁成長令我們特別鼓舞。這個群體每年購買多達 30 種香水，今年該群體的數量每季都在增長。

We also continue to advance our loyalty program, which has industry-leading satisfaction ratings and represents over 80% of our sales. In Q3, we had approximately 38 million active loyalty members, up 4% compared to the prior year. Loyalty customers visit us more frequently, spend more, have higher cross-channel and cross-category purchase behavior, and higher retention rates than those outside the program.

我們也將繼續推進我們的忠誠度計劃，該計劃擁有業界領先的滿意度評級，占我們銷售額的 80% 以上。第三季度，我們約有 3,800 萬活躍忠誠會員，比上年成長 4%。忠誠客戶造訪我們網站的頻率更高、消費更多、跨渠道和跨類別購買行為更頻繁，而且比計劃外的客戶保留率更高。

Our technology roadmap is on track. We are building the foundational tools and systems to support long-term growth and enabling new capabilities to increase customer engagement and provide a more seamless cross-channel shopping experience. In Q3, we successfully launched our Everyday Luxuries line on TikTok Shop, allowing us to reach younger customers where they are. According to Fiverr, nearly 54% of Gen Z customers will discover holiday gifts on TikTok this season. We intend to continue to leverage this important platform to connect with this audience using highly engaging content to boost brand awareness throughout the holiday period.

我們的技術路線圖正在按計劃進行。我們正在建立基礎工具和系統以支援長期成長，並啟用新功能來提高客戶參與度並提供更無縫的跨通路購物體驗。第三季度，我們成功在 TikTok Shop 上推出了 Everyday Luxuries 系列，讓我們能夠接觸到年輕消費者。據 Fiverr 稱，本季近 54% 的 Z 世代消費者會在 TikTok 上發現節日禮物。我們打算繼續利用這個重要的平台，透過極具吸引力的內容與受眾建立聯繫，以在整個假期期間提升品牌知名度。

Finally, enhancing operational excellence and efficiency. While we execute initiatives to engage our customers and drive top-line growth, we continue to be focused on cost discipline. Our fuel for growth plan is progressing, and we now expect to deliver $150 million of incremental cost savings by year-end, bringing the two-year total to $300 million, significantly exceeding our initial targets.

最後，提高卓越營運和效率。在我們採取措施吸引客戶並推動營收成長的同時，我們仍將專注於成本控制。我們的成長計畫正在取得進展，目前我們預計到年底將實現 1.5 億美元的增量成本節約，使兩年的總額達到 3 億美元，大大超過我們最初的目標。

Additionally, our Beauty Park continues to be a significant competitive advantage, driving speed and operational agility. With around 85% of our products manufactured in North America, we believe we are relatively well-positioned for any potential tariff fluctuations.

此外，我們的美容園區持續保持顯著的競爭優勢，推動速度和營運靈活性。由於我們的產品約有 85% 在北美製造，因此我們相信，我們能夠相對有利地應對任何潛在的關稅波動。

To summarize the quarter, I'm pleased with our strong performance and the momentum we're building. As we enter Q4, our key holiday selling season, we're poised to drive strong demand and are excited to offer compelling products with gifts available at a wide range of price points.

總結本季度，我對我們的強勁表現和正在建立的勢頭感到滿意。隨著我們進入第四季度，也就是我們的主要假日銷售季節，我們準備好推動強勁的需求，並很高興提供具有多種價位的禮品和引人注目的產品。

Our fulfillment centers and stores are fully staffed and ready to deliver an exceptional retail experience, while our omni-channel approach ensures customers can shop seamlessly, wherever and whenever they choose. Over the long term, our strategy and the actions we're taking position the company to return to sustainable, profitable growth, driving meaningful shareholder value creation.

我們的履行中心和商店配備了充足的員工，隨時準備提供卓越的零售體驗，而我們的全通路方法確保客戶可以隨時隨地無縫購物。從長遠來看，我們的策略和採取的行動將使公司恢復可持續的獲利成長，推動有意義的股東價值創造。

Before I turn the call over to Eva, I'd like to thank our teams for their outstanding execution, for delivering against our strategic priorities, and for consistently providing great service to our customers.

在將電話轉給伊娃之前，我想感謝我們團隊的出色執行，感謝他們實現了我們的策略重點，感謝他們始終如一地為我們的客戶提供優質服務。

With that, I'll turn it over to Eva.

說完這些，我會把話題交給 Eva。

Thank you, Gina, and good morning, everyone.

謝謝你，吉娜，大家早安。

We executed well in the third quarter and delivered earnings per diluted share of $0.49, beating our guidance of $0.41 to $0.47 per diluted share. This outperformance was driven by net sales and our ongoing cost discipline.

我們在第三季表現良好，每股攤薄收益為 0.49 美元，超過我們預期的每股攤薄收益 0.41 美元至 0.47 美元。這一優異表現得益於淨銷售額和我們持續的成本控制。

As discussed earlier, consumers responded favorably to our product innovation and compelling value proposition. We delivered net sales of $1.6 billion, an increase of 3% versus prior year, beating our guidance on the top line as well. As expected, the calendar shift benefited net sales by approximately 200 basis points in the quarter.

正如前面所討論的，消費者對我們的產品創新和引人注目的價值主張做出了積極的反應。我們的淨銷售額達到 16 億美元，比上年成長 3%，也超過了我們的預期。如預期，日曆轉換使本季的淨銷售額受益約 200 個基點。

In US and Canadian stores, net sales totaled $1.2 billion, an increase of 4.4% versus prior year. Direct net sales were $321 million, an increase of 1.5% compared to last year. As a reminder, BOPIS net sales are recognized as store net sales. When adjusted for BOPIS, direct outperforms stores. BOPIS demand increased approximately 40% in the quarter and, year to date, represents approximately 25% of total digital demand.

在美國和加拿大的商店，淨銷售額總計 12 億美元，比上年增長 4.4%。直接淨銷售額為3.21億美元，比去年成長1.5%。提醒一下，BOPIS 淨銷售額被視為商店淨銷售額。經 BOPIS 調整後，直銷的表現優於商店。本季 BOPIS 需求成長了約 40%，年初至今，約佔總數位需求的 25%。

International net sales were $69 million, down 11.1% from the prior year. The decline was entirely driven by the markets affected by the war in the Middle East, which currently represents about half of our total international business. Our system-wide retail sales performance continues to be strong in areas not affected by the war, growing double digits year over year. International was an approximate 70-basis-point headwind to Q3 net sales growth.

國際淨銷售額為 6,900 萬美元，較上年下降 11.1%。下滑完全是受中東戰爭影響的市場所致，目前中東戰爭約占我們國際業務總量的一半。在未受戰爭影響的地區，我們全系統的零售業績持續保持強勁，較去年同期成長兩位數。國際業務對第三季淨銷售額成長造成了約 70 個基點的阻力。

Third-quarter gross profit rate of 43.5% was in line with expectations and a decline of 10 basis points compared to prior year. Gross profit benefited from continued cost savings, offset by strategically planned promotion activities in the quarter.

第三季毛利率為43.5%，符合預期，較上年同期下降10個基點。毛利受益於持續的成本節約，但被本季策略性策劃的促銷活動所抵銷。

AURs increased 1% in the quarter, driven by mix. We will continue to utilize our agile business model, and we will take the appropriate pricing actions to maximize sales and margin for the company. Our nimble supply chain allows us to quickly respond to the competitive marketplace and consumer preferences and demand.

受混合因素的推動，本季 AUR 成長了 1%。我們將繼續利用我們的敏捷商業模式，並採取適當的定價措施來最大化公司的銷售和利潤。我們靈活的供應鏈使我們能夠快速回應競爭激烈的市場以及消費者的偏好和需求。

SG&A as a percentage of net sales of 30% was better than our expectations, a result of our disciplined management of our home office costs. There were also some shifts in the timing of spend from Q3 into Q4. Finally, I would note that third-quarter SG&A reflects an incremental year-over-year 100 basis point of marketing investment, consistent with prior quarters.

銷售、一般及行政開支佔淨銷售額的 30% 高於我們的預期，這得益於我們對總部成本的嚴格管理。從第三季到第四季度，支出時間也發生了一些變化。最後，我要指出的是，第三季的銷售、一般及行政開支反映了行銷投資年比增加了 100 個基點，與前幾個季度一致。

The benefits of our fuel for growth cost optimization work spans across both gross profit and SG&A. In the third quarter, we deliver benefits of approximately $35 million. As Gina mentioned, the expected 2024 fuel for growth contribution now totals $150 million, up from our prior estimate of $130 million. The increase is largely a margin. I am pleased with our team's outstanding work on this initiative.

我們的成長成本優化工作帶來的好處涵蓋了毛利和銷售、一般及行政費用。第三季度，我們實現了約 3500 萬美元的收益。正如吉娜所提到的，預計 2024 年的成長動力貢獻總額將達到 1.5 億美元，高於我們先前估計的 1.3 億美元。成長主要是幅度。我對我們的團隊在這項計劃上所做的出色工作感到非常高興。

Third-quarter total operating income of $218 million decreased 1.3% and was 13.5% of net sales. With respect to inventory, we ended the third quarter with total inventory down 2% to last year. Heading into the holiday season, our inventory levels are well positioned.

第三季總營業收入 2.18 億美元，下降 1.3%，佔淨銷售額的 13.5%。至於庫存，在截止第三季末，我們的總庫存比去年同期下降了 2%。進入假期，我們的庫存水準處於良好狀態。

For real estate, in the third quarter, we opened 35 new off-mall stores and permanently closed 19 in-mall stores in North America. Internationally, our partners opened 13 net new stores in the third quarter, resulting in a total international store count of 510.

在房地產方面，第三季度，我們在北美開設了 35 家新的場外商店，並永久關閉了 19 家場內商店。在國際上，我們的合作夥伴在第三季開設了 13 家新店，國際門市總數達到 510 家。

Turning now to our financial guidance, our Q4 sales expectations include some unique elements given the calendar shift, the 53rd week last year, and the five fewer shopping days between Thanksgiving and Christmas. The midpoint of our Q4 net sales guidance assumes growth that is consistent with our Q3 results when adjusting for these calendar impacts.

現在談談我們的財務指導，考慮到日曆的變化、去年的第 53 週以及感恩節和聖誕節之間的購物日減少了五天，我們的第四季度銷售預期包括一些獨特因素。我們第四季淨銷售額預期的中點假設在調整這些日曆影響後，成長與我們的第三季業績一致。

Our reported sales are expected to be down 6.5% to down 4.5% versus the prior year. We expect fourth-quarter gross profit rate to be approximately 46.3%, an improvement of 40 basis points versus prior year, reflecting our fuel for growth savings and distribution productivity. We expect fourth-quarter SG&A rate to be approximately 22.4%, up approximately 40 basis points to last year, largely due to our marketing investments which we begin to lap in the quarter. We expect fourth-quarter net non-operating expense of approximately $70 million, a tax rate of approximately 26.4%, with weighted average diluted shares outstanding of approximately 217 million. Considering these inputs, we are forecasting fourth-quarter earnings per diluted share of between $1.94 and $2.07.

我們報告的銷售額預計將比上年下降 6.5% 至 4.5%。我們預計第四季毛利率約為 46.3%，較上年同期提高 40 個基點，這反映了我們成長儲蓄和分銷生產力的動力。我們預計第四季度銷售、一般及行政開支率約為 22.4%，較去年同期將上漲約 40 個基點，主要歸功於我們在本季開始進行的行銷投資。我們預計第四季淨非營業支出約為 7,000 萬美元，稅率約為 26.4%，加權平均稀釋流通股數約為 2.17 億股。考慮到這些因素，我們預測第四季每股攤薄收益在 1.94 美元至 2.07 美元之間。

Now, I will highlight our fiscal 2024 guidance. For the full year, we now expect net sales range to be down 2.5% to down 1.7%. The 53rd week in 2023 added $81 million to net sales and represents a headwind of approximately 100 basis points to our 2024 growth. We have provided the quarterly impact on net sales due to the calendar shifts in our slide presentation.

現在，我將重點介紹我們的 2024 財年指引。就全年而言，我們目前預計淨銷售額將下降 2.5% 至 1.7%。2023 年第 53 週的淨銷售額增加了 8,100 萬美元，對我們 2024 年的成長造成了約 100 個基點的阻力。我們在幻燈片簡報中提供了日曆變化對季度淨銷售額的影響。

We continue to expect gross margin rate of approximately 44% and SG&A rate of approximately 27%. We are raising and narrowing our full-year guidance for adjusted earnings per diluted share to between $3.15 to $3.28, up 2% at the midpoint versus our prior guidance, reflecting the Q3 outperformance and our Q4 outlook.

我們繼續預期毛利率約 44%，銷售、一般及行政費用率約為 27%。我們將全年調整後每股攤薄收益預期上調並縮窄至3.15 美元至3.28 美元之間，較之前的預期中位數上漲2%，以反映第三季度的優異表現和我們對第四季度的展望。

Now for a quick update on capital allocations, our top priority remains driving sustainable, long-term profitable growth through investments in the business. Year to date, through the third quarter, our total capital expenditures were $166 million. Our full-year capital investment plan remains approximately $250 million, the vast majority of which will be reported as capital expenditures in our cash flow statement.

現在快速更新一下資本配置，我們的首要任務仍然是透過業務投資推動可持續的長期獲利成長。截至第三季度，今年迄今為止，我們的總資本支出為 1.66 億美元。我們的全年資本投資計畫仍約為 2.5 億美元，其中絕大部分將作為資本支出在我們的現金流量表中報告。

During the quarter, we paid out $44 million in dividends, and we have paid out $134 million year to date. Additionally, we recently announced a quarterly dividend of $0.20 per share payable on December 6. We expect to continue our annual dividend of $0.80 per share, with the intention to increase the dividend over time with sustained earnings growth.

本季度，我們支付了 4,400 萬美元的股息，今年迄今我們已經支付了 1.34 億美元的股息。此外，我們最近宣布每股 0.20 美元的季度股息將於 12 月 6 日支付。我們預計將繼續派發每股 0.80 美元的年度股息，並計劃隨著盈利的持續增長而逐漸增加股息。

During the quarter, we repurchased 3.2 million shares of common stock for $99 million at an average price of $30.87 per share. Year to date, we repurchased 9 million shares of common stock for $348 million. Our full-year guidance reflects the expectation to repurchase $400 million.

本季度，我們以每股 30.87 美元的平均價格回購了 320 萬股普通股，回購金額達 9,900 萬美元。今年迄今為止，我們以 3.48 億美元回購了 900 萬股普通股。我們的全年指引反映了 4 億美元的回購預期。

Our gross adjusted debt-to-EBITDAR ratio is 2.7 times on a trailing 12-month basis. Year to date, we repurchased $200 million principal amount of senior notes. And in July of next year, we have $314 million of debt maturing, which we will pay down.

以過去 12 個月為基礎，我們的總調整後債務與 EBITDAR 比率為 2.7 倍。今年迄今為止，我們已回購了 2 億美元的優先票據本金。明年7月，我們有3.14億美元的債務到期，我們將償還這筆債務。

After investments in the business, we continue to expect to generate full-year adjusted free cash flow between $675 million and $775 million. As outlined, we'll put that towards our capital return priorities of dividend and share repurchases.

在該業務進行投資後，我們預計全年調整後自由現金流仍將在 6.75 億美元至 7.75 億美元之間。如上所述，我們將把這作為股息和股票回購的資本回報優先事項。

Lastly, we will not be providing any guidance on 2025 until we report our Q4 2024 results. I am pleased with the momentum in the business we are building as we head into the holiday season and execute against our strategy.

最後，在我們報告 2024 年第四季業績之前，我們不會提供任何有關 2025 年的指導。隨著我們進入假期並實施我們的策略，我對我們業務的發展勢頭感到滿意。

With that, I'll turn the call back to Gina for some closing remarks.

說完這些，我將把電話轉回給吉娜，請她做一些結束語。

Thank you, Eva.

謝謝你，伊娃。

To close, I'd like to thank our teams for delivering Q3 net sales and earnings above the high end of our range. And I am pleased to raise our full-year guidance to reflect the outperformance.

最後，我要感謝我們的團隊實現的第三季淨銷售額和收益超出了我們的預期範圍。我很高興能提高我們的全年業績預期，以反映出色的表現。

We are laser focused on executing the all-important Q4 and building on our momentum. Our focused investments are working and we're beginning to see results. We have the right strategy in place and are taking the right actions to position the business to navigate this volatile near-term environment and to return to long-term sustainable profitable growth as we enter 2025. We have a best-in-class team executing. And as we look to the new year, we have a lot to be excited about.

我們全心全意地致力於執行至關重要的第四季度並保持我們的發展勢頭。我們的重點投資正在發揮作用並開始看到成果。我們制定了正確的策略，並正在採取正確的行動，以使企業能夠應對短期內動盪的環境，並在進入 2025 年時恢復長期可持續的盈利增長。我們擁有一流的執行團隊。展望新的一年，我們有許多值得興奮的事情。

I will now turn the call over to the operator for questions.

我現在將把電話轉給接線員來回答問題。

(Operator Instructions) Lorraine Hutchinson, Bank of America.

（操作員指示）美國銀行洛林·哈欽森（Lorraine Hutchinson）。

Good morning. You said on the slide deck that you don't expect candle normalization to have a material impact on the business in 2025 and beyond. Is this a change? And what drives your confidence that this pressure is behind you?

早安.您在幻燈片上說過，您預計蠟燭正常化不會對 2025 年及以後的業務產生重大影響。這是一個改變嗎？那麼什麼讓您有信心這些壓力已經過去了呢？

Thank you, Lorraine. Great to hear from you.

謝謝你，洛林。很高興收到您的來信。

As I said in the remarks, we are the candle category leader, so we're looking at the market as a whole. We've been exerting our leadership, and as a result of amplifying also our quality messaging and meeting the customer where they are, we've seen the candles certainly gain unit market share and we drove growth.

正如我在評論中所說，我們是蠟燭類別的領導者，因此我們關注整個市場。我們一直在發揮我們的領導作用，並且透過擴大我們的優質訊息傳遞範圍以及在客戶所在地與客戶見面，我們看到蠟燭的單位市場份額確實有所增加，並且我們推動了成長。

The comment that we made was we don't expect candle normalization to impact beyond. We have seen some of the levers, for example, for us when we shine some of our collaborations on candles, Stranger Things Part 2, fall seasonal assortment. The customers really responded to some of these seasonal bring-backs as well, and that drove growth in the candle market.

我們的評論是，我們預計蠟燭標準化不會產生更大的影響。我們已經看到了一些槓桿，例如，當我們在蠟燭、《怪奇物語》第 2 部分、秋季季節性分類上進行一些合作時。顧客對這些季節性回歸產品確實做出了積極的反應，這推動了蠟燭市場的成長。

So effectively, we see that as behind us. It had been normalizing and impacting us in 2024, moderated, and we're all about putting the innovation, the collaborations, and the marketing brand-building activities behind this leading -- having leading market share as well allows us to see that picture. Thank you for the question.

因此，我們實際上認為這已經成為過去。它在2024 年已經正常化並對我們產生了影響，並且有所緩和，我們的全部工作都是將創新、合作和營銷品牌建設活動置於這一領先地位——擁有領先的市場份額也讓我們看到了這一圖景。感謝您的提問。

Thank you.

謝謝。

Mark Altschwager, Baird.

馬克·阿爾特施瓦格，貝爾德。

Good morning. Thank you. I wanted to ask on gross margin. I think this was the first quarter in quite some time where you didn't deliver upside to the gross margin guidance and even with some of the outperformance in the fuel for growth initiative. So hoping you can just talk us through some of the puts and takes there.

早安.謝謝。我想問一下毛利率。我認為這是相當長一段時間以來的第一個季度，毛利率未能超過預期，即使在成長動力計劃中取得了一些優異表現。所以希望您能向我們介紹其中的一些情況。

And then just bigger picture, guidance implies about 17% EBIT margin this year. Is that the right level for this business? Or do you think the sustainable top-line growth will require higher levels of investment moving forward? Thank you.

從更大角度來看，指引顯示今年的息稅前利潤率約為 17%。對於這項業務來說，這是合適的水平嗎？或者您認為可持續的營收成長將需要更高水準的投資？謝謝。

Thanks for that question, Mark. This is Eva. I'll take that one.

謝謝你的提問，馬克。這是伊娃。我要那個。

We delivered right in line with our expectations on gross margin. We benefited from the cost savings. We are lapping significant improvements last year in gross margin. It was about 140-basis-point expansion. And we did have some incremental strategically planned promotions that we're pleased with the returns on both the top line as well as the bottom line. So we're pleased with our margin performance.

我們的毛利率完全符合我們的預期。我們從成本節省中獲益。去年我們的毛利率取得了顯著的提高。其擴張幅度約為140個基點。我們確實進行了一些漸進的策略性促銷計劃，我們對營收和利潤的回報感到滿意。因此，我們對我們的利潤率表現感到滿意。

As you ask your question longer term, our target gross margins are 45%. Our guidance for this year implies about 44%. So we're pleased with the progress we've continued to make to improve our margins and remain focused on moving toward those target margins of 45% and 20% at the OI level.

正如你問的長期問題，我們的目標毛利率是 45%。我們對今年的預期是 44% 左右。因此，我們對在提高利潤率方面取得的進展感到滿意，並繼續專注於實現 45% 和 20% 的 OI 水準的目標利潤率。

Matthew Boss, JPMorgan.

摩根大通的馬修·博斯（Matthew Boss）。

Great. Thanks. So Gina, could you elaborate on category trends versus plan that you saw in the third quarter and maybe the cadence of traffic that you saw as the quarter progressed, what you're seeing so far in November? And then for Eva, just on gross margin, if you could maybe bridge the 40 basis points gross margin expansion in the fourth quarter, just maybe walk through the drivers.

偉大的。謝謝。那麼吉娜，您能否詳細說明您在第三季度看到的類別趨勢與計劃，以及隨著本季度的發展您所看到的流量節奏，以及您在 11 月份迄今為止看到的情況？然後對於 Eva，僅就毛利率而言，如果您可以彌補第四季度 40 個基點的毛利率擴張，那麼也許可以介紹一下驅動因素。

Thanks, Matt. I will start and I'll ask Eva to chime in as well.

謝謝，馬特。我先開始，然後我會讓 Eva 也加入進來。

As we said, the categories themselves -- the body care, home fragrance, and soaps and sanitizers -- grew in the quarter compared to last year, so low single digits. It was great actually to see the positive response that customers had to our seasonal merchandise. They continue to seek our newness and innovation.

正如我們所說，這些類別本身——身體護理、家用香水、肥皂和消毒劑——與去年相比本季都有所增長，因此增長率都很低，僅為個位數。看到顧客對我們的季節性商品做出積極的反應，我們感到非常高興。他們不斷尋求我們的新穎性和創新性。

And so things like Everyday Luxuries, which was lifting the fine fragrance mist very nicely, and our seasonal fragrance launches like Vanilla Romance and Platinum, these are on-trend fragrances, which lifted those categories. Overall, it was great to see the categories as a whole respond to this level of newness and innovation. And it's supported by the competitive value proposition that we provide and also increasing the demand-driving investments in the marketing side.

因此，像 Everyday Luxuries 這樣的產品，可以很好地提升細膩的香味霧氣，而我們季節性推出的香水，如 Vanilla Romance 和 Platinum，都是流行香水，可以提升這些類別的銷量。總體而言，很高興看到各個類別都對這種程度的新穎性和創新性做出了反應。它得到了我們提供的競爭價值主張的支持，並且還在行銷方面增加了需求驅動的投資。

So that's it on the category side. Over to you, Eva, for the remainder.

從類別方面來說就是這樣。剩下的就交給你了，伊娃。

Sure. So on the gross margin, Matt, overall, the 40-basis-point expansion is largely driven by B&O, continued benefits from our direct fulfillment as we optimize our network. We also do have some home office cost reductions that benefit the B&O line as well. So we're pleased with the Q4 gross margin expectations.

當然。因此，就毛利率而言，馬特，總體而言，40 個基點的擴張主要是由 B&O 推動的，隨著我們網路的優化，我們的直接履行繼續受益。我們也確實降低了一些家庭辦公室的成本，這也使 B&O 系列受益。因此，我們對第四季的毛利率預期感到滿意。

In terms of traffic trends in the quarter, overall, we were really pleased with traffic throughout the quarter. Traffic was up in our stores throughout the quarter. And it was driven by the newness that we brought, Everyday Luxuries launch drove traffic, our fall candles, our traffic exceeded external benchmarks.

就本季的流量趨勢而言，總體而言，我們對整個季度的流量感到非常滿意。整個季度，我們商店的客流量都有所增加。這是由我們帶來的新鮮感推動的，Everyday Luxuries 的推出推動了流量，我們的秋季蠟燭、我們的流量都超過了外部基準。

And finally, I'll go back to Halloween. It feels like a long time ago, but our Halloween performed really well, up double digits, which was amplified by our Stranger Things Part 2 collab. So as you have three legs of the stool working together -- our promotion, our product, amplified by our marketing -- we're really pleased with the response we got from customers.

最後，我要回到萬聖節。感覺好像已經是很久以前的事了，但我們的萬聖節表現確實很好，增長了兩位數，而我們與《怪奇物語》第二部分的合作更是將這一成績擴大了。所以，當我們的三條腿一起工作時——我們的促銷、我們的產品，再加上我們的行銷——我們對從客戶那裡得到的回饋感到非常滿意。

Alex Straton, Morgan Stanley.

摩根士丹利的亞歷克斯·斯特拉頓。

Perfect. Thanks so much. Just first on revenue, it looks like when you adjust out the 53rd week dynamics, you actually are delivering that growth you hoped for in the back half. Do you see it that way? And then what's holding you back from the mid-single digit to high-single digit hopes you have longer term? And then one quick final one is just on anything you can provide on the margin profile of the adjacencies as they become a bigger part of the revenue base. Thanks a lot.

完美的。非常感謝。首先關於收入，看起來當你調整第 53 週的動態時，你實際上正在實現你所希望的下半年成長。您是這麼認為的嗎？那麼，是什麼阻礙了您實現從中個位數到高個位數的長期希望呢？最後一個快速問題是，隨著鄰接關係成為收入基礎的重要組成部分，您可以提供有關鄰接關係利潤率概況的任何資訊。多謝。

Hi, Alex. This is Eva. I'll take the first couple parts of the question, and Gina will take the third part.

你好，亞歷克斯。這是伊娃。我將回答問題的前幾個部分，吉娜將回答第三部分。

As you looked at our Q3 performance and our expected Q4 performance, when you normalize for the calendar shifts at the mid -- what we delivered in Q3 as well as at the mid and the high, we continue to drive growth. Obviously, on a reported basis, Q4 has a significant number of calendar shifts, the 53rd week, and the shorter shopping time between Thanksgiving and Christmas. So overall, we're pleased and we're pleased how we're entering the quarter and the momentum that we've built.

正如您所看到的，我們第三季度的業績和預期的第四季度業績一樣，當您根據中期日曆變化進行標準化時，我們在第三季度以及中期和高峰期所交付的業績，我們將繼續推動成長。顯然，從報告來看，第四季的日曆變化次數較多，有第 53 週，而且感恩節和聖誕節之間的購物時間較短。總的來說，我們很高興，我們對本季的進展和我們已經建立的勢頭感到滿意。

On the adjacencies, overall, it's factored into our gross margin outlook. I don't want to comment specifically on any given product, but a typical rule of thumb is as products mature, as they scale, we can improve our gross margins.

就相鄰因素而言，總體而言，它已計入我們的毛利率前景。我不想針對任何特定產品發表具體評論，但一個典型的經驗法則是，隨著產品的成熟和規模的擴大，我們可以提高毛利率。

And I'll turn it back to Gina looking longer term.

我會把目光轉回給吉娜，專注於更長遠的未來。

So thank you. I think -- let me just comment on adjacencies and go longer term as well.

所以謝謝你。我認為——讓我僅對鄰接關係進行評論，並進行長期評論。

As it relates to adjacencies, we mentioned that it was, in aggregate, about 10% of our business. And just to remind us about the goal of adjacencies, it's really to extend our reach, increase penetration, diversify the portfolio while still growing the core. And in this quarter, adjacencies in the aggregate grew above shop. That is consistent with the first half of the year. So the sequential improvement was driven by the core. And so to have both adjacency and core driving is really important.

至於與鄰接關係，我們提到，總體而言，它約占我們業務的 10%。只是為了提醒我們鄰接的目標，它實際上是為了擴大我們的覆蓋範圍，提高滲透率，在仍然發展核心的同時實現投資組合多樣化。本季度，鄰接關係總量的成長超過了商店。這與上半年的情況一致。因此，連續的改進是由核心推動的。因此，相鄰性和核心驅動力並存非常重要。

On the -- as I said, Eva said as well, we're not going to comment specifically on 2025, but we should expect to see improved health in our core categories. We should see the adjacent categories continue to grow in both size and contribution. And we're really pleased with where we sit right now. Thank you.

正如我所說，伊娃也說過，我們不會具體評論 2025 年，但我們應該期待看到核心類別的健康狀況有所改善。我們應該看到相鄰類別的規模和貢獻都將繼續成長。我們對目前的狀況非常滿意。謝謝。

Paul Lejuez, Citi.

花旗銀行的 Paul Lejuez。

Hey. Thanks, guys. Sorry if I missed it, but what was the third-quarter merch margin and what is your plan for merch margin in 4Q? And anything you could share on AUR on like-for-like and what's driving that mix? The AUR being up 1%, what is driving that higher? Thanks.

嘿。謝謝大家。抱歉，如果我錯過了，但是第三季的商品利潤率是多少？您可以在 AUR 上分享哪些同類資訊以及推動這種組合的因素是什麼？AUR 上漲了 1%，是什麼推動了它上漲？謝謝。

Yeah. Paul, this is Eva. On the margin, I would say merch margin was flattish to last year. And as I said earlier, we continue to benefit from some of our initiatives to improve cost. We're lapping a very strong improvement last year, offset by some of the promotional activities. As you look at Q4, I would say merch margin pretty flattish as well, and really, the improvement year over year we're driving from our B&O efficiencies.

是的。保羅，這是伊娃。從利潤率來看，我想說商品利潤率與去年持平。正如我之前所說，我們繼續從一些改善成本的措施中受益。去年，我們取得了非常強勁的進步，但這被一些促銷活動所抵消。當您回顧第四季度時，我會說商品利潤率也相當平穩，而實際上，我們透過提高 B&O 效率實現了同比改善。

And I'll add on the like-for-like and the mix. It's great to see mix driving AUR up 1%. And really, it's a function of the combination of product price and marketing coming together. But we have a good, better, best product mix, and that's great to see in this -- with a wide variety of price points. We're elevating the value that we deliver to our customers and the innovation. So overall, we're pleased with where we sit in this environment and excited to see the results show up in the P&L.

我也會加入同類內容和混合內容。很高興看到混合驅動 AUR 上漲 1%。事實上，它是產品價格和行銷相結合的結果。但是，我們擁有良好、更好、最佳的產品組合，這一點非常令人高興，因為我們的產品具有多種價位。我們正在提升我們為客戶提供的價值和創新。因此，總體而言，我們對所處的環境感到滿意，並很高興看到結果在損益表中反映出來。

Thank you for the question.

感謝您的提問。

Simeon Siegel, BMO Capital Markets.

蒙特利爾銀行資本市場 (BMO Capital Markets) 的西緬·西格爾 (Simeon Siegel)。

Thanks. Hey. Good morning, everyone. Nice to see the progress. Eva, how much was marketing as a percent of sales? How are you thinking about that going forward?

謝謝。嘿。大家早安。很高興看到進步。伊娃，行銷佔銷售額的百分比是多少？您對此下一步有什麼想法？

And then, Gina, just can you -- maybe to dig into the collab learnings a little bit. I know it's still relatively early, but you have a few in place. I know you're great with data. So I'm just curious how you would frame the learnings and the benefits maybe you're seeing so far.

然後，吉娜，你能否——也許深入了解一下合作學習？我知道現在還比較早，但你已經做好了一些準備。我知道你很擅長處理數據。所以我只是好奇您如何建立您迄今為止所看到的學習和好處。

Would you characterize them as driving new customers, driving greater frequency of existing, boosting the current shopper's annual spend? Did it smooth out otherwise seasonal purchases? I'm just trying to think through if you could share -- it seems like you're creating catalysts as opposed to relying on what had been specific holidays or seasons do that for you. So any color there would be helpful. Thank you.

您是否認為它們會吸引新客戶、增加現有客戶的購物頻率、增加當前購物者的年度支出？它是否平滑了其他季節性購買？我只是想知道您是否可以分享——看起來您正在創造催化劑，而不是依靠特定的假期或季節為您做到這一點。所以任何顏色都會有幫助。謝謝。

Yes. Simeon, I'll start with the marketing. Overall, on an annual basis, it's about 3.5% of our sales. In the quarter, it was about a 100-basis-point step-up from LY. And you see in Q4, we're beginning to lap the marketing investment, but there's still a step-up bringing us to the full annual 3.5%.

是的。西緬，我先談行銷。總體而言，按年計算，這約占我們銷售額的 3.5%。本季度，它比 LY 高出約 100 個基點。您會發現，在第四季度，我們開始增加行銷投資，但仍需逐步實現全年 3.5% 的成長。

And as it relates to your question on collab learnings, this is really driving the growth in the core products, and it's generating that top-of-mind awareness with both existing customers and attracting new customers as well and, on top of that, really delivering a highly differentiated storytelling.

至於你關於合作學習的問題，這確實推動了核心產品的成長，並在現有客戶中產生了首要意識，也吸引了新客戶，最重要的是，傳遞高度差異化的故事講述。

So we've got a selective approach when it comes to collabs. Not only does it drive traffic, which is a measure that we use to answer your question, but it's also enhancing our brand cultural relevancy. So examples of that, Stranger Things Part 2 really generated buzz in the Halloween floor set, which exceeded expectations, as Eva discussed. Our Emily in Paris cross-category collaboration kicked off with a successful early-access event at the start of this quarter, and the full launch of that is right around the corner.

因此，我們在合作時採取選擇性的方法。它不僅可以帶來流量（這是我們用來回答您的問題的一種措施），而且還可以增強我們品牌的文化相關性。舉個例子，《怪奇物語 2》確實在萬聖節場景中引起了轟動，這超出了預期，正如 Eva 所討論的那樣。我們與《艾米莉在巴黎》的跨類別合作已於本季初成功拉開序幕，全面發佈在即。

And so in total, the metrics of traffic, their brand-building relevancy, particularly for the 18- to 34-year-old customer, because the way we choose these is the complementarity of what the Bath & Body Works customer is and the Netflix property, in this case, that we would be working with. So that's the overall collab learnings, and we're really pleased with success so far. What's great about having Bridgerton out-of-the-gate success is that there's a pipeline of people who would want to work with us, and we can be very choosy from that perspective.

總的來說，流量指標、品牌建立相關性，特別是針對 18 至 34 歲的客戶，因為我們選擇這些指標的方式是 Bath & Body Works 客戶和 Netflix 的互補性在這種情況下，我們將使用這個屬性。這就是整體的合作學習，我們對迄今為止的成功感到非常高興。《布里奇頓》一開始就獲得成功的好處在於，有大量的人願意與我們合作，從這個角度來看，我們可以非常挑剔。

Thank you for the questions.

感謝您的提問。

Kate McShane, Goldman Sachs.

高盛的凱特‧麥克沙恩 (Kate McShane)。

Hi. Good morning. Thanks for taking our question. Last quarter, you mentioned that the adjacent categories were performing well, particularly with existing customers, but it was taking some time to build the brand awareness and generate a greater number of new-to-brand customers. I don't think we've heard similar language today and just wondered if anything has changed there.

你好。早安.感謝您回答我們的問題。上個季度，您提到相鄰類別表現良好，尤其是在現有客戶中，但需要一些時間來建立品牌知名度並吸引更多的新品牌客戶。我認為我們今天沒有聽過類似的語言，只是想知道那裡是否發生了任何變化。

Actually, the adjacencies are delivering as we expected, and there's a strong delivery there. Nothing's changed from that perspective, although what we do watch is for adjacencies, we want to make sure that we've got the incrementality, that it's building the baskets. So no change there, it is.

實際上，鄰接區域的交付正如我們預期的那樣，交付強勁。從這個角度來看，一切都沒有改變，儘管我們確實關注的是鄰接關係，但我們希望確保我們獲得了增量，確保我們能夠建立籃子。因此，沒有變化。

Repeat rates are still very strong, so we're excited by that. And depending on the category, whether it's men's, hair, lip, and laundry, varying degrees of the percentage of customers that are new to the brand. So we're pleased, actually, with the progress. These are still at varying degrees of penetration and percentage of our total portfolio, but no change in their contributing as well as the core. So it's great to see that.

重複率仍然很高，所以我們對此感到興奮。而且根據產品類別，無論是男士產品、美髮產品、唇部產品或洗衣產品，新顧客的比例也有所不同。因此，我們實際上對進展感到非常滿意。這些資產在我們的總投資組合中的滲透率和佔比仍然有不同程度的變化，但它們的貢獻和核心並沒有變化。我很高興看到這一點。

Thank you.

謝謝。

Jonna Kim, TD Cowen.

喬娜金（Jonna Kim），TD Cowen。

Thanks for taking my question. Obviously, you had some nice momentum with newness this year. Could you talk about how much of the sales is driven by newness now and, as we think about next year, if you plan to ramp that up? And just also wanted to get some color around the cadence of newness as well as far as you can provide some color around it. Thank you so much.

感謝您回答我的問題。顯然，今年你在新事物方面取得了一些良好的進展。您能否談談目前有多少銷售額是由新品推動的？並且也希望能夠為新事物的節奏添加一些色彩，並且盡可能為其添加一些色彩。太感謝了。

Yeah. Thank you for the question. We talk quite a bit about the core and more, and that usually refers to the core categories, which we commented on all three big categories being up in sales. We also talk about more, and more is the adjacencies, but it's also around the level of newness, and we are every bit as driven by newness as we have in the heydays of Bath & Body Works, which I'm pleased to see.

是的。感謝您的提問。我們談論了很多關於核心以及其他內容的話題，通常指的是核心類別，我們評論說三大類別的銷售量都有所上升。我們也談論更多，更多是相鄰關係，但也圍繞著新鮮感的層面，我們完全由新鮮感所驅動，就像 Bath＆Body Works 的鼎盛時期一樣，我很高興看到這一點。

The customer will always come for newness and innovation. It is especially scalable, relevant newness, and so we're going to continue to work that winning recipe. There's no particular ramp on newness next year, but as a percentage of the portfolio will continue to be the lifeblood of this business, and we're excited by the pipeline that we see.

顧客總是為了新鮮和創新而來。它特別具有可擴展性和相關的新穎性，因此我們將繼續努力實現這一成功秘訣。明年不會有特別的新品推出，但作為投資組合的一部分，新產品將繼續成為我們業務的命脈，我們對所看到的產品線感到興奮。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

富國銀行的艾克·博魯喬（Ike Boruchow）。

Hey. Good morning, everyone. Eva, maybe first one for you, just on the international side, maybe excluding the calendar shifts, what's the expectation for 4Q and the timing of return to growth, given the headwinds there?

嘿。大家早安。伊娃，也許首先要問您一個問題，僅從國際方面來說，也許不包括日曆變化，考慮到那裡的阻力，對第四季度的預期是什麼？ 恢復增長的時間是什麼？

And then the follow-up for Gina, it doesn't sound like it, especially based on your tone and your Q4 outlook, but just because of the gross margin, the lack of robust upside you guys have been putting up, but also the revenue upside, just trying to understand, is there any kind of strategic shift in your view where you need to give up a little bit more of the gross margin to drive more productivity and more market share gains? It doesn't sound like that's what you're trying to message, but I just want to double-click into that. Thanks.

然後是吉娜的後續問題，聽起來不像，特別是根據你的語氣和你對第四季度的展望，但僅僅是因為毛利率，你們一直缺乏強勁的上升空間，而且收入上升，只是想了解一下，您認為是否存在某種策略轉變，需要放棄多一點的毛利率來提高生產力並增加更多的市場佔有率？這聽起來不像是您想要傳達的訊息，但我只是想雙擊它。謝謝。

Thanks, Ike, for the question. Overall, as we look at international, a couple things I just want to highlight for you. First, in the areas not affected by the war, system-wide retail, sales grew double digits. We actually saw an acceleration, and that's underpinning the health of the business. And that was store openings and comps, and we feel really good about the acceptance of the brand there.

謝謝艾克提問。總的來說，當我們放眼國際時，我只想向您強調幾件事。首先，在未受戰爭影響的地區，全系統零售額均實現了兩位數的成長。我們實際上看到了加速，這支撐了業務的健康。這就是商店開業和銷售情況，我們對該品牌在那裡的接受度感到非常滿意。

Now, the war-affected regions represent about half of our business, and they continue to be pressured. In October, we saw a bit of relief as we began to annualize the start of the war, but it's really difficult to predict the dynamics there.

現在，受戰爭影響的地區約占我們業務的一半，而且這些地區繼續承受著壓力。十月份，當我們開始將戰爭的開始年度化時，我們看到了一點安慰，但預測那裡的動態確實很困難。

For the fourth quarter, from a reported sales perspective, I would expect sales to be down mid-single digits. And if you think about our commentary last quarter, if you look at the back half of the year, we're largely in line with our commentary last quarter. So we'll have more to say about 2025 on our earnings call, but we see international as a great opportunity for longer-term growth and entering new markets.

對於第四季度，從報告的銷售額來看，我預計銷售額將下降中等個位數。如果您考慮我們上個季度的評論，如果您看看今年下半年，我們基本上與上個季度的評論一致。因此，我們將在收益電話會議上更多地談論 2025 年，但我們認為國際化是實現長期成長和進入新市場的絕佳機會。

Thanks. And Ike, to your question about the gross margin, I think, the gross margin that we spoke about that Eva talked to is on top of already very healthy gains in the anniversary. There's no strategic shift of giving up on gross margin. We came in line with expectations in gross margin. But what we are doing is we're leveraging our core strength, which is we have this very agile model, as you know, in supply chain, and we can leverage that and chase bestsellers and winners and so forth.

謝謝。艾克，關於你提到的毛利率問題，我認為，我們之前談到的伊娃提到的毛利率是在周年紀念日已經非常可觀的增長基礎上的。不存在放棄毛利率的策略轉換。我們的毛利率符合預期。但我們正在做的是利用我們的核心優勢，也就是我們在供應鏈中擁有這個非常靈活的模型，我們可以利用這一點來追逐暢銷書和贏家等等。

And so if I go back to the real core performance levers that we have, I think of it as four legs to a chair. We've got the scalable relevant newness. We've got the competitive value proposition. We've got the increased demand driving investments. But above all, we also have this agile supply chain model that allows us to react to customer demand and meet them where they are, both in our core categories, as well as our adjacents.

因此，如果我回顧我們真正的核心績效槓桿，我會將其視為椅子的四條腿。我們獲得了可擴展的相關新穎性。我們有競爭性的價值主張。需求的增加推動了投資。但最重要的是，我們也擁有這種敏捷的供應鏈模型，使我們能夠對客戶需求做出反應，並滿足他們的需求，無論是在我們的核心類別還是在我們的相鄰類別中。

So thank you for the question.

感謝您的提問。

Olivia Tong, Raymond James.

奧莉維亞通 (Olivia Tong)、雷蒙詹姆斯 (Raymond James)。

Great. Thanks. Good morning. I wanted to ask you about loyalty as it's continued to gain some really nice momentum and what your thoughts are from here, how much more opportunities there to leverage your program, learnings that you've made from them.

偉大的。謝謝。早安.我想問您關於忠誠度的問題，因為它繼續獲得一些非常好的勢頭，您對此有何想法，有多少機會可以利用您的計劃，您從中獲得了什麼教訓。

And then in terms of the manufacturing, great to hear about the 85% that is in the US. I was wondering if you could just discuss your competition, if there's any color that you can provide on how much exposure your competition has to overseas manufacturing. That would be very helpful. Thank you.

就製造而言，很高興聽到 85% 的製造業務在美國完成。我想知道您是否可以討論一下您的競爭對手，您是否可以提供一些關於您的競爭對手在海外製造業方面的曝光程度的資訊。那將會非常有幫助。謝謝。

Thank you. Well, let me start with loyalty, which we're really pleased about. Our loyalty program, as you know, has very high member satisfaction rates of 93% and accounts for over 80% of our US sales. As we move forward, we're going to get even more out of the approximately 38 million active members of our program. And as we said in our remarks, it's up 4% compared to the prior year.

謝謝。好吧，讓我先從忠誠開始，我們對此真的很高興。如您所知，我們的忠誠度計畫的會員滿意度高達 93%，占我們美國銷售額的 80% 以上。隨著我們不斷前進，我們將從我們計劃的約 3800 萬活躍成員中獲得更多利益。正如我們在評論中所說，與前一年相比，這一數字增長了 4%。

But this is also about deepening the engagement in the program. We know that loyalty members visit us more frequently. Our goal is to get customers' earnings and redeeming their points with greater frequency. Because we know when customers go up that redemption ladder, they're even more valuable to us. And we're pleased to say that actually that happened.

但這也是為了深化對該計劃的參與。我們知道忠誠的會員會更頻繁地拜訪我們。我們的目標是提高顧客的收益並讓他們更頻繁地兌換積分。因為我們知道，當顧客的積分越高，他們對我們來說就越有價值。我們很高興地說這確實發生了。

We call this the loyalty flywheel, actually. This is when reward redemptions increases, which it did. When attached sales to the loyalty program increases, which it did. And then when newly enrolled active members, you know, loyalty members enroll with the app, they're proven to have an even higher engagement and spend. So overall loyalty delivering on the metrics that we have, and we're really pleased to see that progress.

實際上，我們稱之為忠誠度飛輪。此時獎勵兌換量就會增加，事實也確實如此。當忠誠度計劃附加銷售額後，事實也確實如此。然後，當新註冊的活躍會員，你知道，忠誠會員透過應用程式註冊時，他們被證明具有更高的參與度和消費額。因此，整體忠誠度符合我們現有的指標，我們很高興看到這項進步。

I think on the manufacturing point, all I'll say is I don't have any color on the competition. We're just pleased with the advantage that we have having here in our backyard, Beauty Park, but also together representing 85% in North America. So I'll leave it.

我認為從製造角度來說，我只能說我對競爭對手沒有任何印象。我們很高興能擁有這樣的優勢：不僅在我們自己的後院 Beauty Park 有這樣的市場優勢，而且我們的市場涵蓋了北美 85% 的市場。所以我就不說了。

And Gina, I'd just add, we've worked diligently as a company over the last several years to reduce exposure and to increase our agility. And we believe it puts us in a very good place.

吉娜，我想補充一點，過去幾年來，我們公司一直在努力減少風險，提高我們的靈活性。我們相信這會讓我們處於非常有利的地位。

Great. Thank you.

偉大的。謝謝。

Krisztina Katai, Deutsche Bank.

德意志銀行的 Krisztina Katai。

Hi. Good morning, and thank you for taking the question. I wanted to ask about your recent launch of TikTok Shop and then just building on that early success. Can you share maybe what the plans are to further leverage this platform to reach younger demographics, particularly during the holiday season?

你好。早上好，感謝您回答這個問題。我想問一下您最近推出的 TikTok Shop 的情況，以及在早期成功的基礎上如何繼續發展。您能否分享一下，您有何計劃，將進一步利用這個平台吸引更年輕的群體，尤其是在假日期間？

And then secondly, within that, just what are some of the key metrics that you are using to measure the effectiveness of these campaigns? Thank you.

其次，您使用哪些關鍵指標來衡量這些活動的有效性？謝謝。

Thank you, Krisztina. The launch of TikTok Shop that happened this quarter was exactly that to allow us to reach the younger customers. And we're learning. It's early, but we like what we're seeing. We are making this channel and, more importantly, this marketing medium part of our holiday season activations.

謝謝你，克里斯蒂娜。本季推出的 TikTok Shop 正是為了讓我們接觸到更年輕的客戶。我們正在學習。雖然還為時過早，但我們喜歡我們所看到的。我們正在將這個管道、更重要的是，這個行銷媒介作為我們假期季節活動的一部分。

We're going to complement it by other social media strategies as well to sort of amplify our brand awareness. And as you know, those are things like Instagram, YouTube, and so forth. So it's a combination of all the social media strategies directed towards broader reach, particularly with the younger customer.

我們還將透過其他社交媒體策略對其進行補充，以擴大我們的品牌知名度。如你所知，這些是 Instagram、YouTube 等。因此，它是所有社交媒體策略的組合，旨在擴大影響力，特別是針對年輕的客戶。

And the metrics we're using to measure the success of all of these is a return on ad spend. We're also seeing customer metrics by demographic category, whether they're listing as a result of how we're targeting the social media to them. And so there's a number of metrics that -- and we're very, very disciplined with those. They have to hit a certain threshold before we continue to spend it. But we're excited by both the spend levels and the ROI on that.

我們用來衡量所有這些成功與否的標準是廣告支出的報酬率。我們也可以按人口統計類別查看客戶指標，無論他們是否列出，都是因為我們向他們投放了社群媒體。因此，我們制定了一系列指標——並且我們對這些指標非常非常嚴格。他們必須達到一定的門檻，我們才能繼續花錢。但我們對此的支出水準和投資報酬率都感到興奮。

Thank you for the question.

感謝您的提問。

Dana Telsey, Telsey Advisory Group.

達娜‧特爾西 (Dana Telsey)，特爾西顧問集團 (Telsey Advisory Group)。

Hi. Good morning. Nice to see the progress. As you think about the increase in store traffic that you mentioned, off-mall versus on-mall, were there regional trends to that? And following on the digital performance, what did you see in BOPIS?

你好。早安.很高興看到進步。當您想到您提到的店內客流量增加時，無論是商場外或商場內，是否有區域趨勢？繼數位表演之後，您在 BOPIS 中看到了什麼？

Hi, Dana. It's Eva. Thanks for the question.

你好，達娜。是伊娃。謝謝你的提問。

Overall, off-mall stores performed better than mall-based stores. It was traffic and conversion. I'd say there was no notable variance across different regions or tiers.

整體而言，非商場商店的表現優於商場商店。這是流量和轉換。我想說不同地區或不同層級之間沒有明顯的差異。

BOPIS continues to be strong. BOPIS grew 40% in the quarter year over year. It now represents 25% of our digital demand. So we're pleased with offering our customers this choice. And we've said this many times, but about a third of the customers make an incremental purchase when they come into the store. So we're very pleased with BOPIS.

BOPIS 繼續保持強勁勢頭。本季 BOPIS 年增 40%。它現在占我們數位需求的25%。因此我們很高興為客戶提供這個選擇。我們已經多次說過這一點，但大約三分之一的顧客在進入商店時會進行增量購買。所以我們對 BOPIS 非常滿意。

Thank you.

謝謝。

Marni Shapiro, The Retail Tracker.

Marni Shapiro，零售追蹤者。

Hi, guys. Congratulations on a nice quarter. Could you talk a little bit about something I've noticed? I can't remember the exact name of it, but I think it's called Scent-Scriptions. I'm curious, when you rolled that out, if there's been good uptake and is it across all the products? It was on a bunch of the ones I clicked through once I found it. I was curious about that.

嗨，大家好。恭喜您度過了一個愉快的季度。您能談談我注意到的一些事情嗎？我不記得它的具體名字，但我認為它叫做 Scent-Scriptions。我很好奇，當您推出這項功能時，是否得到了良好的認可，並且它是否適用於所有產品？一旦找到它，它就出現在我點擊的一堆清單中。我對此很好奇。

Yeah. Thank you for the question. So Scent-Scriptions is actually something we had in beta for a while. We've had mainly wallflowers in the subscription. The idea that if your wallflower bulb is running low, you'd want to have something readily available to sort of screw into a wallflower heater and that you could get that on an automatic delivery. It was actually called auto-replenish. We rebadged it Scent-Scription.

是的。感謝您的提問。所以 Scent-Scriptions 其實是我們之前測試過的產品。我們的訂閱裡主要都是壁花。如果您的壁花燈泡快要沒電了，您會希望能有一些東西可以隨時擰進壁花加熱器中，而且您可以自動送貨上門。它實際上被稱為自動補充。我們將其重新命名為 Scent-Scription。

And now, we're offering a broader assortment. So you're correct. There's a couple hundred minimum on products and SKUs that are on that Scent-Scription. And we're pleased to offer that. You'll see that it's just another way to have a relevant but a seamless shopping experience that's very convenient. We know our customers are value-seeking and convenience is part of value. So we're excited to have Scent-Scription available to them.

現在，我們提供的產品種類更加豐富。所以你是對的。Scent-Scription 上的產品和 SKU 數量至少有幾百種。我們非常高興能夠提供此項服務。您會發現這只是另一種獲得相關且無縫且非常方便的購物體驗的方式。我們知道我們的客戶追求價值，而便利性是價值的一部分。因此我們很高興能夠為他們提供 Scent-Scription。

Thank you for the question.

感謝您的提問。

Korinne Wolfmeyer, Piper Sandler.

科琳·沃爾夫邁耶，派珀·桑德勒。

Hey. Good morning. Thanks for taking the question. So AUR is trending nicely, it seems like, primarily due to mix. Can you just speak a little bit on how you're viewing the AUR opportunity, both in the near and longer term? How much more room do you have to drive up those price points from a mix standpoint? And then from just general pricing actions, how much more flexibility do you think you have there? Thanks.

嘿。早安.感謝您回答這個問題。因此，AUR 的趨勢很好，似乎主要歸功於混合。您能否簡單談談您如何看待近期和長期的 AUR 機會？從混合角度來看，還有多少空間可以提高這些價格點？那麼從一般的定價行為來看，您認為您擁有多大的彈性？謝謝。

Yeah. Thank you. So overall, as I mentioned, AUR is something that is a function of our agile model as well. We want to meet the customer where they're at. We want to continue to be nimble because we're trying to optimize our top and bottom line. And I want to note also that our AUR is actually still up double digit relative to pre-pandemic levels.

是的。謝謝。總的來說，正如我所提到的，AUR 也是我們敏捷模型的功能。我們希望在客戶所在的地方與他們會面。我們希望繼續保持靈活，因為我們正在努力優化我們的營收和淨利潤。我還想指出的是，與疫情前的水平相比，我們的 AUR 實際上仍上升了兩位數。

We have a number of other things going on. We have a good, better, best strategy. We have a wide variety of price points. But this agile model is about reflecting the current environment. We do rigorous testing on these promotions, which impact AUR, and we are ensuring that they're accretive to both sales and margin dollars. So we're going to continue to leverage that model, that speed and scale and the promo capabilities that we have to position the company for top- and bottom-line growth.

我們還有很多其他事情要做。我們有一個好、更好、最好的策略。我們有各種各樣的價格點。但這個敏捷模型是為了反映目前的環境。我們對這些影響 AUR 的促銷活動進行了嚴格的測試，並確保它們能夠增加銷售額和利潤。因此，我們將繼續利用該模式、速度、規模和促銷能力，幫助公司實現營收和利潤的成長。

And the second question that you had -- I think that was it. Thank you.

你的第二個問題——我想就是這樣。謝謝。

Ashley Helgans, Jefferies.

傑富瑞 (Jefferies) 的阿什利·赫爾甘斯 (Ashley Helgans)。

This is Sydney on for Ashley. Just looking at the Everyday Luxuries line, a lot of the content around that has been kind of about scent dupes. Can you talk a little bit about your philosophy towards dupes versus proprietary scents and just kind of how you think about that? Thank you.

這是悉尼為阿什利表演的節目。只看 Everyday Luxuries 系列，其中許多內容都是關於香水替代品的。您能否稍微談談您對仿製品和專有香水的看法，以及您對此的看法？謝謝。

Thanks for the question. Everyday Luxuries is very much about bringing great fragrances to our customers, especially it's been a hit with the younger customers as well. If you -- and as I said, it really delivered against the fine fragrance mist bump that we had in this quarter.

謝謝你的提問。Everyday Luxuries 致力於為我們的客戶提供優質香水，尤其受到年輕客戶的歡迎。如果你 — — 正如我所說，它確實實現了我們本季所擁有的細膩香味的霧化效果。

What we're trying to do is just make sure, as we always have, that we have the kind of fragrances that people want at approachable prices. And we have -- there's this whole area of proprietary scents and you see a lot out there. These are really unique fragrances for us. Our fragrance houses, which, as you know, are the very same, they continue to provide really high-quality fragrance and it hits the mark with our customers. And I think we're seeing that in terms of Everyday Luxuries lifting the shop.

我們所嘗試做的只是確保，正如我們一直以來所做的那樣，我們能夠以可承受的價格提供人們想要的香水。我們有一系列專有香味的產品，您可以在其中看到很多。對我們來說，這些確實是獨特的香水。如您所知，我們的香水屋始終如一，繼續提供真正高品質的香水，並深受顧客的喜愛。我認為，我們看到了 Everyday Luxuries 正在提升店舖的銷售量。

So thank you for the question. I think that's our last question. So with that, I will wish everyone a very happy Thanksgiving. And over to you, Luke.

感謝您的提問。我想這是我們的最後一個問題。因此，我祝大家感恩節快樂。現在交給你了，盧克。

We want to thank you for joining today's call. A replay will be available for 90 days on our website. Thank you for your interest in Bath & Body Works.

我們感謝您參加今天的電話會議。重播將在我們的網站上保留 90 天。感謝您對 Bath & Body Works 的關注。

Thank you. This concludes today's conference call. 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。現在您可以斷開您的線路。感謝您的參與。