Allbirds Inc (BIRD) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen and welcome to the Allbirds third quarter, 2024 conference call, (Operator Instructions). Now, I would like to turn the call over to Christine Greany of The Blueshirt Group.

下午好，女士們、先生們，歡迎參加 Allbirds 2024 年第三季電話會議（操作員說明）。現在，我想將電話轉給 Blueshirt Group 的 Christine Greany。

Good afternoon, everyone. And thank you for joining us with me on the call. Today are Joe Vernachio, CEO and Annie Mitchell, CFO.

大家下午好。感謝您與我一起參加電話會議。今天的來賓是執行長 Joe Vernachio 和財務長 Annie Mitchell。

Before we start, I'd like to remind you that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about our financial outlook, including cash flow and adjusted EBITDA expectations.

在開始之前，我想提醒您，我們今天將做出聯邦證券法含義內的某些前瞻性聲明，包括有關我們的財務前景的聲明，包括現金流和調整後的 EBITDA 預期。

2024 full year and Q4 guidance target impact and duration of external headwinds strategic transformation plan and related planned efforts go to market strategy, transitions to a distributor model in certain international markets, anticipated distributor model arrangements, expected profitability cost savings target, gross margin estimates, product plan, timelines and expectations, marketing strategy and investment, product and brand strategy and other matters referenced in our earnings release issued today.

2024 年全年和第四季度指導目標影響和外部逆風的持續時間戰略轉型計劃和相關計劃工作進入市場戰略、在某些國際市場過渡到分銷商模式、預期的分銷商模式安排、預期盈利成本節省目標、毛利率估計、產品計劃、時間表和預期、行銷策略和投資、產品和品牌策略以及我們今天發布的收益報告中提到的其他事項。

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please also note that these forward-looking statements reflect our opinions only as of the date of this call and we undertake no obligation to revise any statements to reflect changes that occur after this call.

這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果出現重大差異。另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的意見，我們不承擔修改任何陳述以反映本次電話會議後發生的變化的義務。

Please refer to our SEC filings including our quarterly report on Form 10-Q for the quarter ended June 30 2024 for a more detailed description of the risk factors that may affect our results. Also, during this call, we will discuss non-GAAP financial measures that adjust our GAAP results to eliminate the impact of certain items. These non-GAAP items should be used in addition to and not as a substitute for any GAAP results.

請參閱我們向 SEC 提交的文件，包括截至 2024 年 6 月 30 日的季度 10-Q 表格季度報告，以了解可能影響我們業績的風險因素的更詳細說明。此外，在本次電話會議中，我們將討論調整我們的 GAAP 結果以消除某些項目的影響的非 GAAP 財務措施。這些非 GAAP 項目應作為任何 GAAP 結果的補充使用，而不是取代任何 GAAP 結果。

You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures to the extent reasonably available in today's earnings release.

您將在今天的收益發布中找到有關這些非 GAAP 財務指標的更多信息，以及這些非 GAAP 指標與其最直接可比的 GAAP 指標的調整表（在合理範圍內）。

Now I'll turn the call over to Joe to begin the formal remarks, Joe.

現在我將把電話轉給喬，讓他開始正式講話，喬。

Good afternoon and thank you for joining Q3 was another solid quarter for us with strong execution across our teams with results that matched our expectations. We're pleased with our sustained progress and confident in the steps we're taking to advance the business. We're gearing up for a faster pace of change in the coming quarters, especially when it comes to product and marketing today. I'll recap the quarter and share updates on what's ahead starting with the highlights from Q3.

下午好，感謝您的加入 第三季度對我們來說又是穩定的季度，我們團隊的執行力很強，結果符合我們的預期。我們對我們的持續進步感到高興，並對我們為推動業務所採取的措施充滿信心。我們正在為未來幾季更快的變革做好準備，特別是在今天的產品和行銷方面。我將回顧本季度，並從第三季度的亮點開始分享未來的最新情況。

We recently launched two new products, The Tree Glider performance inspired shoot and the lounger lift, a slip on designed for women to support the Tree Glider launch. We enlisted Wellness expert Melissa Wood - Tepperberg, founder of Melissa Wood Health for an in person event in our New York Soho Store. This activation created engaging social content and positive media coverage helping us reach a wider audience.

我們最近推出了兩款新產品：The Tree Glider 性能靈感拍攝產品和躺椅升降機，這是一款專為女性設計的套穿式產品，以支持 Tree Glider 的推出。我們邀請了健康專家 Melissa Wood - Tepperberg（Melissa Wood Health 的創辦人）在我們的紐約 Soho 店舉辦了一場現場活動。這項活動創造了引人入勝的社交內容和積極的媒體報道，幫助我們接觸到更廣泛的受眾。

The lounger lift was a top pick on the today's shows. Trend report highlighted as a must buy for the holiday season. We're thrilled with the strong consumer response to these launches which reinforces our confidence that our upcoming product set for release in the second half of 2025 will drive future growth as part of our ongoing efforts to optimize our store fleet for profitability.

躺椅升降機是今天節目中的首選。趨勢報告強調，這是假期季節的必備品。我們對消費者對這些產品的強烈反響感到興奮，這增強了我們的信心，即我們即將於 2025 年下半年發布的產品將推動未來的增長，作為我們不斷優化商店隊伍以提高盈利能力的一部分。

We completed two additional closures, one in Q3 and another shortly after the quarter ended. This brings our total US store closures in 2024 to [50] as part of the international distributor strategy. We secured two additional agreements, one in Q3 and another in early October. These new distributors will help us expand awareness and reach in strategic markets covering six countries in Latin America and six countries across mainland Europe, both beginning in mid 2025.

我們完成了另外兩次關閉，一次是在第三季度，另一次是在該季度結束後不久。作為國際經銷商策略的一部分，這將使我們在 2024 年關閉的美國門市總數達到 [50] 家。我們達成了兩項額外協議，一項是在第三季度，另一項是在 10 月初。這些新經銷商將幫助我們擴大戰略市場的知名度和影響力，涵蓋拉丁美洲的六個國家和歐洲大陸的六個國家，這兩個國家都從 2025 年中期開始。

And lastly, our operational and financial rigor enable us to achieve strong gross margin, performance, reduce costs and continue to carefully manage inventory levels. This quarter, we are operating with a strengthened foundation and an improved cost structure resulting from our transformation work.

最後，我們的營運和財務嚴謹性使我們能夠實現強勁的毛利率、業績、降低成本並繼續謹慎管理庫存水準。本季度，我們的轉型工作使我們的營運基礎更加牢固，成本結構也得到了改善。

We're now in the next phase of our journey. Our renewed emphasis on making great product telling great stories and providing customers with an engaging shopping experience is propelling the brand forward and positioning us to achieve growth and profitability.

我們現在正處於旅程的下一階段。我們重新強調製造出色的產品、講述精彩的故事並為客戶提供引人入勝的購物體驗，這推動了品牌的發展，並使我們能夠實現成長和獲利。

Let's start with product. We're returning to our roots as a modern lifestyle footwear brand. Refocusing on our core tenets of comfort and versatility that have always defined us. Our future product lineup brings a new level of modern sophistication that pays homage to our origin story of comfort and sustainability.

我們先從產品開始吧。我們正在回歸現代生活風格鞋類品牌的根源。重新關注始終定義我們的舒適性和多功能性的核心原則。我們未來的產品系列將現代精緻提升到一個新的水平，向我們舒適和永續發展的起源故事致敬。

This next generation offering will begin to hit the market in the second half of 2025. In the meantime, we're keeping things fresh with new silhouettes, materials and colours. It's gratifying to see customers responding positively to our latest releases.

這款下一代產品將於 2025 年下半年開始推出市場。很高興看到客戶對我們的最新版本做出積極反應。

As mentioned, this includes tree runner, go, tree, glider lounger lift and canvas paper. We've also brought back the tree topper by popular demand. And next week, we're launching the lounger renewal. Many of these introductions have been strong performers demonstrating that we are delivering the newness customers want from Albert.

如前所述，這包括樹滑行者、go、樹、滑翔機躺椅升降機和帆布紙。我們也根據大眾的需求帶回了樹頂裝飾器。下週，我們將推出躺椅更新。其中許多介紹都表現出色，顯示我們正在提供客戶希望從 Albert 獲得的新事物。

Additionally, we will be introducing Corduroy to our best selling runner franchise, rolling out more rugged versions of our water repellent collections. Later this sequence turning to marketing, it is clear to us that now is the right time to begin reintroducing the Alberts brand by telling great stories to both loyal customers and new audiences.

此外，我們將在我們最暢銷的跑步鞋系列中引入燈芯絨，推出更堅固的防水系列版本。後來這個序列轉向行銷，我們很清楚，現在是透過向忠實客戶和新受眾講述精彩故事來重新引入 Alberts 品牌的最佳時機。

We're on a mission to reinforce our aspirational brand position and rebuild our cultural relevance with a strong lineup of products set to launch in mid 2025. We're beginning to thoughtfully lean into fresh marketing initiatives under our All Birds by nature brand narrative.

我們的使命是透過 2025 年中期推出的強大產品陣容來鞏固我們理想的品牌地位並重建我們的文化相關性。

We're already seeing positive engagement from our campaigns. We expect to build on this momentum in the coming months soon. We will be launching a top of funnel strategy to increase brand awareness by partnering with OBB media and its branded content division folded to build a premium digital content series. OBB is well known for creating some of the most successful marketing campaigns in recent history. A great example is Cold As Ball a series they created with Kevin Hart in partnership with Old Spice.

我們已經看到我們的活動得到了積極的參與。我們預計在未來幾個月內將繼續保持這一勢頭。我們將推出漏斗頂部策略，透過與 OBB 媒體及其品牌內容部門合作來提高品牌知名度，打造優質數位內容系列。 OBB 以創造近代史上一些最成功的行銷活動而聞名。一個很好的例子是他們與凱文哈特 (Kevin Hart) 和 Old Spice 合作創作的影集《Cold As Ball》。

Our primary focus will be long form video content which is emerging as a highly effective strategy for breaking through in today's attention economy. We believe our by nature messaging will enable us to convey our values around betterment and celebrate our roots. While the video format will help us build deeper and more meaningful connections.

我們的主要關注點是長影片內容，它正在成為突破當今注意力經濟的高效策略。我們相信，我們本質上的信息將使我們能夠傳達我們圍繞改善的價值觀並慶祝我們的根源。而視訊格式將幫助我們建立更深入、更有意義的連結。

More specifically, we will be building a premium digital content series surrounding the Albridge brand with inspirational people, ideas and storytelling. To lead this effort. We have brought on acclaimed producer Kristen Wong to act as our showrunner for our series. Kristen's work on shorts and TV. Specials includes Dave Chappelle and Disney.

更具體地說，我們將圍繞 Albridge 品牌打造一個優質數位內容系列，其中包含鼓舞人心的人物、想法和故事。領導這項工作。我們聘請了廣受好評的製片人克里斯汀王 (Kristen Wong) 擔任我們劇集的劇集主管。克里斯汀的短片和電視作品。特別節目包括戴夫查普爾 (Dave Chappelle) 和迪士尼 (Disney)。

We are preparing to start production with featured partners. Soon, we also have a series of middle funnel initiatives and pr activations planned some of which are already underway in October. It was announced that Albert will become the inaugural footwear partner to Uber Eats Climate Collection. This is a curated selection of ecofriendly brands that will be available for delivery on the app.

我們正準備與特色合作夥伴開始生產。很快，我們還有一系列中間漏斗計劃和公關活動計劃，其中一些已於 10 月開始實施。 Albert 宣布成為 Uber Eats Climate Collection 的首個鞋類合作夥伴。這是精選的環保品牌，可在應用程式上交付。

This collaboration will enable us to tap into their user base to increase awareness, making it easier for people to discover all birds. When we overlaid, Uber eats users with our store locations. The overlap was significant in California, New York and Illinois alone. There are 19 million Uber eats users within delivery distance of our stores.

此次合作將使我們能夠利用他們的用戶群來提高意識，使人們更容易發現所有鳥類。當我們重疊時，Uber 會用我們的商店位置來蠶食用戶。光是在加州、紐約州和伊利諾州，這種重疊現象就很嚴重。在我們商店的送貨範圍內有 1900 萬 Uber eats 用戶。

We are teaming up with Marriott envoy on a sweepstakes with cross channel activations including email paid and influencers. This is a highly visible campaign for us providing our brand with exposure to Marriott's customer base.

我們正在與萬豪特使合作進行跨渠道抽獎活動，包括電子郵件付費和影響者活動。對我們來說，這是一項非常引人注目的活動，可以讓我們的品牌在萬豪的客戶群中曝光。

Later this month, we'll be celebrating our most comfortable products with a special media and influencer event in New York ahead of the holiday season. As we bring fresh updated products to market and amplify our marketing. It is essential that we provide our customers with an engaging shopping experience across all brand touch points to that end.

本月晚些時候，我們將在假期季節之前在紐約舉辦一場特別的媒體和影響力活動，慶祝我們最舒適的產品。當我們將新鮮更新的產品推向市場並擴大我們的行銷時。為此，我們必須在所有品牌接觸點為客戶提供引人入勝的購物體驗。

We're planning improvements to both our e-commerce site and stores in the US that will begin in mid 2025 and take shape throughout the second half of next year, our e-commerce site will be reimagined to make navigation easier to ensure that our storytelling and the overall shopping experience are aligned to our new product architecture and marketing message.

我們計劃對我們在美國的電子商務網站和商店進行改進，該改進將於 2025 年中期開始，並在明年下半年形成，我們的電子商務網站將進行重新設計，使導航更容易，以確保我們的說故事和整體購物體驗與我們的新產品架構和行銷訊息保持一致。

And our Alber store will improve the shopping experience through new product displays, sharper storytelling and other enhancements. Everything from seating and store, navigation to flooring and display tables. Looking just ahead to the upcoming holiday season. We believe our 2024 product launches and marketing initiatives position us to capture consumer attention.

我們的 Alber 商店將透過新產品展示、更清晰的故事敘述和其他增強功能來改善購物體驗。從座椅和商店、導航到地板和展示桌，一切應有盡有。展望即將到來的假期。我們相信 2024 年的產品發布和行銷舉措將使我們能夠吸引消費者的注意。

We recognize that shoppers will be looking for value and we're planning for relevant promotional moments throughout the season. Black Friday and Cyber Monday will be the most significant. Importantly, we are well positioned from an inventory perspective and expect our overall promotional activity to be below last year's levels.

我們認識到購物者會尋找價值，因此我們正在計劃整個季節的相關促銷活動。黑色星期五和網路星期一將是最重要的。重要的是，從庫存角度來看，我們處於有利地位，預計我們的整體促銷活動將低於去年的水平。

We are confident in our plans and how they're coming together. We're passionate about where we're going as a brand footwear is a long game with product cycles taking up to 18 months, but our revitalization is well underway. We're just coming off our fall holiday 2025 sales meeting, which we believe was a resounding success.

我們對我們的計劃以及它們的實施方式充滿信心。我們對自己的發展方向充滿熱情，因為品牌鞋類是一場漫長的遊戲，產品週期長達 18 個月，但我們的復興工作正在順利進行中。我們剛結束 2025 年秋季假期銷售會議，我們相信這次會議取得了巨大成功。

This was the first outside look at the new product architecture we've been talking to you about and the feedback from our external partners was tremendously positive. It's great to receive this validation of the product offerings we're planning to bring to market in the coming months. We're working swiftly making big moves in a short period of time, in fact, from a product and marketing standpoint.

這是我們第一次從外部審視我們一直在與您討論的新產品架構，我們外部合作夥伴的回饋非常正面。很高興收到我們計劃在未來幾個月推向市場的產品的驗證。事實上，從產品和行銷的角度來看，我們正在短時間內迅速採取重大舉措。

We've never been sharper alongside our work on these critical focus areas. We're also staying committed to the foundational aspects of the business. We've made significant progress on cost of goods, expenses, inventory and cash. You can expect to see continued discipline in these areas since day one, sustainability has been at the heart of our brand.

我們在這些關鍵重點領域的工作從未如此敏銳。我們也致力於業務的基礎面。我們在商品成本、費用、庫存和現金方面取得了重大進展。從第一天起，您就可以看到這些領域的持續紀律，永續發展一直是我們品牌的核心。

Our latest sustainability report reveals a 22% reduction in our per unit carbon footprint. Just last week, our Moonshot zero, the world's first net zero carbon shoot set to launch early next year, earned a spot on Time Magazine's list of best inventions in 2024. True to our core values. We remain committed to making a positive impact on the planet as we work toward both profitability and further carbon reduction.

我們最新的永續發展報告顯示，我們的單位碳足跡減少了 22%。就在上週，我們的「零登月」計畫（將於明年初推出的全球首個淨零碳計畫）在《時代》雜誌 2024 年最佳發明排行榜上名列前茅。我們仍然致力於為地球帶來正面影響，同時努力實現利潤和進一步減少碳排放。

It's incredibly gratifying to see the hard work and dedication of our teams across the organization. Everyone is aligned, working with speed and diligence toward a shared goal. This unity gives us tremendous confidence in our direction. We appreciate the continued support of our shareholders and remain focused on advancing our core strategies while staying committed to creating long term value for all our stakeholders.

看到整個組織團隊的辛勤工作和奉獻精神，我們感到非常高興。每個人都團結一致，快速而勤奮地朝著共同的目標努力。這種團結讓我們對自己的方向充滿信心。我們感謝股東的持續支持，並將繼續專注於推進我們的核心策略，同時致力於為所有利害關係人創造長期價值。

Now, I'll turn the call over to Annie to discuss the financials.

現在，我將把電話轉給安妮，討論財務問題。

Thank you Joe and good afternoon, everyone.

謝謝喬，大家下午好。

The third quarter of 2024 marks another successful quarter of results in line with our expectations to echo Joe. Our teams are delivering impressive execution and we are confident in our path forward net revenue for the third quarter totalled $43 million and primarily reflects lower unit sales partially offset by higher average selling prices within our direct business.

2024 年第三季標誌著又一個成功的季度業績，符合我們對 Joe 的預期。我們的團隊正在提供令人印象深刻的執行力，我們對第三季淨收入總計4,300 萬美元的前景充滿信心，這主要反映了單位銷售額的下降，部分被我們直接業務中較高的平均售價所抵消。

As anticipated revenue was also impacted by our international distributor transition and retail store closures of note Q3 is the first quarter in which all five of the direct regions we identified for transition are now operating under a distributor model. Gross margin expanded 90 basis points versus a year ago to 44.4%.

由於預期收入也受到我們的國際分銷商轉型和零售店關閉的影響，值得注意的是，第三季度是我們確定要轉型的所有五個直接區域現在都在分銷商模式下運營的第一季。毛利率較上年同期成長 90 個基點，達到 44.4%。

The improvement is primarily attributable to lower freight and duty costs as well as benefits from our healthier inventory position. This is in line with the expectations we previously communicated for gross margin in the [mid 40s] for the full year.

這一改善主要歸因於運費和關稅成本的降低以及我們更健康的庫存狀況所帶來的好處。這符合我們先前對全年毛利率 [40 年代中期] 的預期。

22 expenses. We are pleased to see that our cost control actions are continuing to bear [fruit SG&A] dollars excluding stock based compensation and depreciation and amortization totalled $25 million. That's down 24% versus a year ago. Driven by lower personnel expenses and occupancy costs.

22 費用。我們很高興地看到，我們的成本控制行動繼續帶來 [SG&A] 美元（不包括基於股票的薪酬和折舊及攤提）總計 2500 萬美元。與一年前相比下降了 24%。受人員費用和占用成本降低的推動。

During the quarter. We closed one US store followed by one additional closure subsequent to quarter end. That brings us to 15 closures year-to-date at the high end of our plan in connection with store closures, we incurred one time cash charges of $1.5 million.

本季期間。我們關閉了一家美國商店，隨後在季度末又關閉了一家商店。今年迄今為止，我們關閉了 15 家商店，達到了我們與關閉商店相關的計劃的上限，我們一次性支付了 150 萬美元的現金費用。

We are pleased with the progress on this front and we will continue to opportunistically evaluate our fleet going forward in the fourth quarter. We expect SG&A to be down modestly on a year over year basis. Third quarter, market expense total $10 million or 23% of net revenue down 3% on a dollar basis compared to prior year.

我們對這方面的進展感到高興，我們將繼續機會主義地評估我們第四季的機隊未來發展。我們預計 SG&A 將年比小幅下降。第三季度，市場費用總計 1,000 萬美元，佔淨收入的 23%，以美元計算，與去年同期相比下降了 3%。

We expect total marketing dollars to continue to be down year over year in the fourth quarter. With US spend anticipated to become notably, we've made the strategic decision to hold back on starting our top of funnel spend in the US until the latter part of Q4. We believe adjusting the timing of these investments will enable us to generate greater returns as we strive to build brand awareness ahead of our 2025 product launches.

我們預計第四季的營銷總額將繼續同比下降。由於美國的支出預計將變得顯著，我們做出了戰略決定，推遲在美國的漏斗頂部支出，直到第四季度末。我們相信，調整這些投資的時機將使我們能夠產生更大的回報，因為我們努力在 2025 年產品發布之前建立品牌知名度。

Turning now to the balance sheet and cash flow. The company remains in strong financial conditions with cash and cash equivalents of $79 million and no outstanding borrowings under our $50 million revolver. We ended the quarter with inventory totalling $57 million. That's down 28% versus a year ago and reflects healthy levels. Heading into the holiday selling season.

現在轉向資產負債表和現金流。該公司的財務狀況仍然強勁，現金和現金等價物為 7,900 萬美元，且我們的 5,000 萬美元循環貸款下沒有未償還借款。本季結束時，我們的庫存總額為 5700 萬美元。與一年前相比下降了 28%，反映了健康水平。即將進入假日銷售季節。

Our onboard financial rigor enabled us to narrow our operating cash use to $11 million in Q3 a sequential improvement from $16 million in the second quarter. Moving now to full year guidance. We're revising our top line outlook, maintaining our gross margin outlook and narrowing our adjusted EBITDA range full year net revenue is expected to be between $187million to $193 million.

我們的內部財務嚴謹性使我們能夠將營運現金使用量從第二季的 1,600 萬美元減少到第三季的 1,100 萬美元。現在轉向全年指導。我們正在修改營收展望，維持毛利率展望，並縮小調整後的 EBITDA 範圍，全年淨收入預計在 1.87 億美元至 1.93 億美元之間。

This guidance range is inclusive of the full year impact from retail store closures which we were able to execute at the high end of our range and international transition. These structural changes comprise about 40% of our expected year, over year revenue decline and are estimated at $23 million to $28 million of impact broken down by geographical market full year 2024 US net revenue is expected to be between $143 million to $147 million. This includes a $10 million to $12 million impact resulting from store closures.

該指導範圍包括零售店關閉對全年的影響，我們能夠在範圍的高端和國際轉型中執行這些影響。這些結構性變化約占我們預期年度收入下降的 40%，按地域市場劃分預計影響為 2,300 萬至 2,800 萬美元，2024 年美國全年淨收入預計為 1.43 億至 1.47 億美元。這包括商店關閉造成的 1000 萬至 1200 萬美元的影響。

International revenue is expected to be between $44 million to $46 million including $13 million to $16 million of impact resulting from transitions to a distributor model in certain international markets. We continue to anticipate gross margins in the range of 43% to 46% on go margin strength is expected to be driven by reduced promotional activity compared to last year.

國際收入預計在 4,400 萬美元至 4,600 萬美元之間，其中包括因在某些國際市場向分銷商模式轉型而產生的 1,300 萬美元至 1,600 萬美元的影響。我們繼續預期毛利率將在 43% 至 46% 之間，與去年相比，促銷活動減少將推動毛利率走強。

Lower inbound and outbound freight and initial savings from our factory shift to Vietnam and materials innovation partially offsetting the strength in the fourth quarter. We expect a greater portion of our business to come from international distributor sales which are lower gross margins full year adjusted even a loss is now expected to be in the range of $75 million to $71 million compared to our prior range of $75 million to $63 million.

進出境運費的下降以及我們的工廠轉移到越南和材料創新帶來的初始節省部分抵消了第四季度的強勁勢頭。我們預計我們的業務將有很大一部分來自國際經銷商銷售，全年調整後的毛利率較低，即使目前預計虧損在7,500 萬美元至7,100 萬美元之間，而之前的虧損範圍為7,500 萬美元至6300 萬美元。

Turning now to fourth quarter guidance. We expect net revenues to be in the range of $53 million to $59 million US Revenue is expected to be in the range of $45 million to $49 million. And international revenue is expected to be in the range of $8 million to $10 million.

現在轉向第四季指引。我們預計淨收入將在 5,300 萬美元至 5,900 萬美元之間。國際收入預計在 800 萬至 1000 萬美元之間。

Our Q4 guidance for the US market reflects the following factors. Our plans for lower promotional activity versus a year ago. Our expectation that the landscape will be highly competitive this holiday season, the shift in timing of our upper funnel marketing spend and store closures at the high end of our range.

我們對美國市場第四季的指導反映了以下因素。與一年前相比，我們計劃減少促銷活動。我們預計，這個假期的市場競爭將會非常激烈，我們的上漏斗行銷支出的時間也會發生變化，我們的高端商店也會關閉。

Q4, just at Eva loss is expected to be below year ago level in the range of $25 million to $21 million primarily due to our Q4 revenue outlook as well as a modest impact to gross profit related to the upcoming transition to our new European distributor. Entering the final stretch of the year, we are continuing to execute on our strategic focus areas while maintaining financial and operational discipline.

第四季度，Eva 的虧損預計將低於去年同期水平，在2500 萬美元至2100 萬美元之間，主要是由於我們第四季度的收入前景以及即將向我們的新歐洲經銷商過渡對毛利潤的適度影響。進入今年的最後階段，我們將繼續執行我們的策略重點領域，同時保持財務和營運紀律。

We appreciate your time this afternoon and we'll now open the call for questions.

感謝您今天下午的時間，我們現在開始提問。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Our first question comes from the line of Janine Stitcher of BTIG. Your line is now open.

我們的第一個問題來自 BTIG 的 Janine Stitcher。您的線路現已開通。

Hi, good afternoon. I want to ask to start out about the top line. if we think about the Q4 guidance in terms of revenue decline and maybe help us square where we are now versus where you had expected to be a quarter ago.

嗨，下午好。我想先從頂線開始。如果我們從收入下降的角度考慮第四季度的指導，也許可以幫助我們平衡現在的情況與季度前的預期。

Is if the delta is simply that the timing of marketing expense and the additional store closures or is there anything else happening in the environment that would change that guidance? And then maybe along those lines, just you could give us some guide to about how to think about the timing of potential return to growth for 25. Thank you.

增量是否只是行銷費用的時間和額外的商店關閉，或者環境中是否發生了其他任何事情會改變這一指導？然後，也許沿著這些思路，您可以給我們一些指導，幫助我們思考 25 年潛在恢復成長的時機。

Hi, Janine. Thanks so much for your questions. Yes, the timing of the marketing spend is part of the contribution to our Q4 guide and as well as the retail doors being closed at the high end of our range. Additionally, because of the great work that we've done on inventory year-to-date. You probably noticed that our inventory was down 28% at the end of Q3. We feel like we don't have to be aggressively promotional in Q4 the way that we were last year.

嗨，珍妮。非常感謝您的提問。是的，行銷支出的時機是對我們第四季指南的貢獻的一部分，也是我們高端產品範圍關閉的零售大門的一部分。此外，也因為我們今年迄今在庫存方面所做的出色工作。您可能注意到，我們的庫存在第三季末下降了 28%。我們覺得我們不必像去年那樣在第四季進行積極的促銷活動。

Of course, recognizing that the consumer is always going to be looking for value this time of year, we will be leaning into consumer moments like Black Friday, Cyber Monday. But when you look at our expectations for this year, especially compared to last year, our inventory is in just such a different, much stronger position. We're not going to be nearly as promotional. And so, we recognize the impact that will have on our overall unit sales.

當然，認識到消費者總是會在每年的這個時候尋找價值，我們將專注於黑色星期五、網路星期一等消費者時刻。但當你看看我們對今年的預期時，尤其是與去年相比，我們的庫存處於如此不同的、更強勁的位置。我們不會那麼促銷。因此，我們認識到這將對我們的整體銷售產生影響。

And then maybe I'll just address the when the growth will come into our business. So, we've got the three legged stool well in place. So, the product marketing and the shopping experience, all three of those are well underway. The product pipeline has been developed and is delivering in the back half of next year for fall holiday 25. And it is as rich of a product offering as this brand has had maybe since its origins.

然後也許我會談談我們的業務何時會成長。這樣，我們就已經把三腳凳放好了。因此，產品行銷和購物體驗這三者都在順利進行。產品線已經開發完畢，並將於明年下半年的 25 號秋季假期交付。

And so it is in the back half of the year that you will see the growth starting to inflect and it's when the marketing will start to come to bear. And the experience that we're going to try to give to consumers through our website and our stores and through our distribution partners that the brand will start to reconnect and have cultural connection back out into the marketplace. So, we are laser focused on the back half of next year to deliver growth.

因此，在今年下半年，您將看到成長開始出現變化，也是行銷開始發揮作用的時候。我們將嘗試透過我們的網站、商店以及我們的分銷合作夥伴為消費者提供體驗，品牌將開始重新建立聯繫，並將文化聯繫帶回市場。因此，我們將重點放在明年下半年以實現成長。

Okay, great. And then maybe. Just the last one. If you could elaborate a little bit more about some of this branded content that you're planning for next year, Sounds really interesting and something different. So just maybe you can share on that.

好的，太好了。然後也許。只是最後一張。如果你能詳細說明一下你明年計劃的一些品牌內容，聽起來真的很有趣，而且有些不同。所以也許你可以分享一下。

Yeah. So first focusing our brand around the message of all birds by nature has been paramount to us being able to connect all of the communication from the very top of the funnel all the way down to a PDP. And it's really starting to pay dividends. We're really starting to see some of those early leading metrics starting to turn in our direction because of our consistency of message.

是的。因此，首先將我們的品牌集中在所有鳥類的本質訊息上，這對於我們能夠將所有溝通從管道的最頂端一直到 PDP 連接起來至關重要。它確實開始帶來紅利。由於我們資訊的一致性，我們確實開始看到一些早期的領先指標開始轉向我們的方向。

And so everything we do will be wrapped in this message of all birds by nature. And then we believe at the very top of the funnel just doing plain advertising is doesn't work as effective as it used to. We need to create content that is engaging and entertaining and has a series associated with it. So, people keep coming back to it. We're trying to create a mechanism that we can bring in popular people and connect with popular culture.

因此，我們所做的一切都將包含在所有鳥類天生的訊息中。然後我們相信，在管道的最頂端，光是做簡單的廣告並不像以前那麼有效。我們需要創造引人入勝、有趣的內容，並有一系列與之相關的內容。所以，人們不斷地回到它。我們正在嘗試建立一個機制，能夠引入大眾，與大眾文化連結。

And most importantly is we've been able to secure OBB, which is their experts at building this type of content and we're well underway of building it and we'll probably be teasing it in the back end of this quarter.

最重要的是，我們已經能夠確保 OBB 的安全，OBB 是他們構建此類內容的專家，我們正在順利構建它，我們可能會在本季度末對其進行測試。

And then it'll start to really show up in the beginning part of Q1and into Q2. Priming the pump so that we get people out of the top of our funnel for when the new products arrive and then there'll be lots of mid funnel and lower funnel activations as the new product starts to hit the market. But we're, we're really excited about that work that we're doing. And I think that we've got a really unique proposition on how to connect with people.

然後它將開始真正出現在第一季的開始部分和第二季度。啟動泵，以便當新產品到達時，我們可以讓人們離開漏斗頂部，然後當新產品開始進入市場時，就會有大量的漏斗中部和下部啟動。但我們對我們正在做的工作感到非常興奮。我認為我們對於如何與人建立聯繫有一個非常獨特的主張。

Perfect. Thank you so much.

完美的。太感謝了。

One moment for our next question.

請稍等一下我們的下一個問題。

Our next question comes from the line of Alex Straton of Morgan Stanley. Your line is now open.

我們的下一個問題來自摩根士丹利的亞歷克斯·斯特拉頓。您的線路現已開通。

Hey, thanks a lot for taking the question. I've got two for, for you both. First on inventory and then on SG&A. So, on inventory, it sounds like you guys feel good about the levels in aggregate, they look good. But can you just dig into the composition of it? Like how much is legacy product that you plan to phase out versus kind of like newness? And then how are you planning that for next year?

嘿，非常感謝您提出問題。我有兩個，給你們兩個。首先是庫存，然後是 SG&A。所以，在庫存方面，聽起來你們對整體水準感覺良好，看起來不錯。但你能深入研究一下它的成分嗎？例如您計劃淘汰的舊產品與新產品的比例是多少？那麼你明年的計畫如何？

And then just on SG&A you guys have done a lot of solid rationalization work. There feels like that's been a bright spot in your strategy, but when we look at it, it's still a super high percentage of sales. So, is there more room to go there or how do you think about SG&A as a percentage of sales over time?

然後，就SG&A 而言，你們已經做了很多紮實的合理化工作。感覺這一直是你們策略中的一個亮點，但當我們審視它時，它仍然佔銷售額的比例非常高。那麼，是否還有更大的發展空間，或者您如何看待 SG&A 在一段時間內佔銷售額的百分比？

Thanks, Alice. And I'll start with your question around the overall inventory levels and composition. We feel very good about where our overall inventory levels are being down 28% year over year. And when we look at that composition, especially compared to where we were last year, we have much more in season appropriate inventory and goods in transit.

謝謝，愛麗絲。我將從你關於總體庫存水準和構成的問題開始。我們對整體庫存水準年減 28% 感到非常滿意。當我們審視這一構成時，特別是與去年相比，我們有更多的季節性庫存和在運貨物。

So things that we're bringing in for the start of 2025 versus this time last year, we still had quite a bit of legacy product that we need to clear through some of those non go forward styles or colours. So, in short, we're opening up Q4 with the great both level and composition of inventory that we need for the quarter.

因此，與去年這個時候相比，我們在 2025 年初推出的產品仍然有相當多的遺留產品，我們需要清除其中一些不先進的款式或顏色。因此，簡而言之，我們將在第四季度開始時提供本季所需的良好庫存水準和組成。

As mentioned a moment ago, we will promote as needed. We have some great value opportunities for consumers around Black Friday, Cyber Monday and the priority will be around ending the year clean with inventory because we do want to have that availability and are open to buy into the fantastic new products that are coming in the back half of 2025.

正如剛才所說，我們會根據需要進行推廣。我們在黑色星期五和網路星期一期間為消費者提供了一些巨大的價值機會，優先事項將是在年底清理庫存，因為我們確實希望擁有這種可用性，並且願意購買即將推出的精彩新產品2025 年一半。

So that's really what we're going to be focusing on for the rest of this year. We're in a great position right now and we feel good about our plan. Nowhere near the legacy levels that we had last year regarding SG&A. Yes, we have made quite a bit of progress this year.

所以這確實是我們今年剩餘時間要關注的重點。我們現在處於一個很好的位置，我們對我們的計劃感覺很好。與去年我們在 SG&A 方面的遺留水平相去甚遠。是的，今年我們取得了很大的進步。

Some of what you saw in Q3, We are still a little bit of legacy or left over cost that we will not have to go forward, but generally the improvements that we've made. And again, being down 23% year over year, overs is 21% in the prior quarter. You can see that this is, what we're doing is really starting to bear fruit.

您在第三季看到的一些內容，我們仍然有一些遺留或遺留成本，我們不必繼續前進，但總的來說我們已經做出了改進。再次，年減 23%，上一季的超額率為 21%。大家可以看到，這是，我們所做的事情，真的開始有了成果。

We do believe that with the changes that we've made, we've successfully transitioned the five targeted international regions from the direct model to a distributor model. That's a contributor. Those are those five regions are now done. We will be transitioning as well. The majority of the European Union or EU business in the middle of 2025. So that will have a small beneficial impact as well on SG&A.

我們確實相信，透過我們所做的改變，我們已經成功地將五個目標國際地區從直接模式轉變為經銷商模式。那是一個貢獻者。這就是現在已經完成的五個區域。我們也將進行轉型。大部分歐盟或歐盟業務將於 2025 年中期完成。

And we've closed 15 retail doors, which is at the high end of our range for this year. We do anticipate that we're done with closing doors for this year and, but now that we've built up this rigor and the way that we look at our business and drive retail, we will continue to be opportunistic as needed.

我們已經關閉了 15 家零售店，這是我們今年範圍內的高端零售店。我們確實預計今年我們將不再關門，但現在我們已經建立了這種嚴格性以及我們看待業務和推動零售的方式，我們將繼續根據需要抓住機會。

Great. Thanks a lot. Good luck.

偉大的。多謝。祝你好運。

Thank you.

謝謝。

One moment for our next question.

請稍等一下我們的下一個問題。

Our next question comes from the line of Dylan Carden of William Blair. Your line is now open.

我們的下一個問題來自威廉布萊爾的迪倫卡登。您的線路現已開通。

Thank you. Is $11 million the right quarterly cash burn to use through to the back half of next year. And what for the glide path for cash burn as you start to at least as you envision starting to see some traction in the platform.

謝謝。 1,100 萬美元的季度現金消耗是否適合用於明年下半年？當你開始時，至少正如你所設想的，開始在平台上看到一些吸引力時，現金消耗的下滑路徑會怎麼樣？

Thanks for your question, Dylan. When looking at the $11 million that we used in terms of operating cash flow for the quarter, There's still going to be some seasonal fluctuations between each of the four quarters as we normally do, especially as we buy for, for certain seasonal moments across the course of the year, But it's much more in line with the expectation for the coming months.

謝謝你的提問，迪倫。當我們查看本季營運現金流方面使用的1,100 萬美元時，我們發現四個季度之間仍然會出現一些季節性波動，就像我們通常所做的那樣，特別是當我們在整個季度的某些季節性時刻購買時今年的進程，但這更符合未來幾個月的預期。

We will be buying product as we go into fall holiday 25. But because of the great inventory work that we've done to date and the plans that we have for the first half of next year, It's as much as we talk about the inventory and how important it is. The actual investment will largely be captured in the overall run rate of our cash, our operating cash usage. So, there will be a small uptick as we get into the back half of next year in terms of cash usage. But almost barely enough to even for you even to notice it popping.

我們將在 25 月進入秋季假期時購買產品。實際投資將主要體現在我們現金的整體運作率、我們的營運現金使用。因此，當我們進入明年下半年時，現金使用量將會小幅上升。但幾乎​​不足以讓你注意到它的爆裂。

Got it. Thank you. And for gross margins now that you're kind of through the distribution agreement is for the mid 40s, the structural level, or is that also depending on kind of what happen to California next Year?

知道了。謝謝。至於毛利率，現在你已經通過了 40 年代中期的分銷協議，結構水平，或者這也取決於明年加州會發生什麼？

So for the remainder of this year, yes, the mid 40s and our guide of 43% to 46% is the way to think about it. And as we go into next year, 2025 there are some continued improvements that we've made in our, on the cost of good side of our products that will continue to bear fruit as we get into 2025. And that new product line, so I would expect to see some level of improvement in 2025 over 2024.

因此，在今年剩下的時間裡，是的，40 年代中期和我們的指導值 43% 到 46% 是考慮這個問題的方式。當我們進入明年 2025 年時，我們在產品好的一面的成本方面做出了一些持續改進，這些改進將在我們進入 2025 年時繼續取得成果。年有所改善。

So thank you very much.

非常感謝。

I am showing no further questions at this time. I would now like to turn it back to Joe Vernacchio for closing remarks.

我目前沒有提出任何進一步的問題。現在我想請喬·韋爾納基奧（Joe Vernacchio）發表結束語。

Thank you everybody. I'm really proud of the management team and the work that we've achieved this quarter and are very excited about what the future holds for this brand. We believe it's a very special brand and we're starting to realize everything that it has to offer and think that the future is really, really bright for us. Thank you for joining and we wish you all a happy holiday season and we'll see you next quarter.

謝謝大家。我對管理團隊和我們本季的工作感到非常自豪，並對這個品牌的未來感到非常興奮。我們相信這是一個非常特別的品牌，我們開始意識到它所提供的一切，並認為未來對我們來說真的非常光明。感謝您的加入，祝大家假期愉快，下季再見。

Thank you, for your participation in today's conference. This concludes the program. You may now disconnect.

感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。