Brilliant Earth Group Inc (BRLT) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Brilliant Earth fourth-quarter and full-year 2023 earnings conference call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加 Brilliant Earth 第四季和 2023 年全年財報電話會議。（操作員說明）

And please be advised that today's conference is being recorded. I would now like to turn the conference over to Stefanie Layton, Senior Vice President, Investor Relations. Please go ahead.

請注意，今天的會議正在錄製中。現在我想將會議交給投資者關係高級副總裁 Stefanie Layton。請繼續。

Thank you, and good afternoon, everyone. Welcome to Brilliant Earth fourth-quarter and full-year 2023 earnings conference call. Joining me today are Beth Gerstein, our Chief Executive Officer; and Jeff Kuo, our Chief Financial Officer.

謝謝大家，大家下午好。歡迎參加 Brilliant Earth 第四季和 2023 年全年財報電話會議。今天加入我的是我們的執行長貝絲‧格斯坦 (Beth Gerstein)；和我們的財務長 Jeff Kuo。

During the call today, management will make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

在今天的電話會議上，管理階層將做出 1995 年《私人證券訴訟改革法案》含義內的某些前瞻性聲明。這些前瞻性陳述存在風險和不確定性，可能導致實際結果有重大差異。

Please refer to our SEC filings for a description of the risks that could cause our actual performance or results to differ materially from those expressed or implied in these forward-looking statements. These forward-looking statements reflect our opinion only as of the date of this call. And we undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events, unless required by law.

請參閱我們向 SEC 提交的文件，以了解可能導致我們的實際業績或結果與這些前瞻性陳述中明示或暗示的結果有重大差異的風險描述。這些前瞻性陳述僅反映我們截至本次電話會議之日的觀點。除非法律要求，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。

Also, during this call, management will refer to certain non-GAAP financial measures. A reconciliation of Brilliant Earth non-GAAP measures to the comparable GAAP measures is available in today's earning release, which can be found on the Brilliant Earth Investor Relations website.

此外，在這次電話會議中，管理階層將參考某些非公認會計準則財務指標。今天的收益報告中提供了 Brilliant Earth 非 GAAP 衡量標準與可比較 GAAP 衡量標準的調整表，該報告可在 Brilliant Earth 投資者關係網站上找到。

I'll now turn the call over to Beth.

我現在將電話轉給貝絲。

Good afternoon, and thank you for joining us today. 2023 ended on a high note, with our team's exceptional execution throughout the holiday season. Our record revenue in Q4 and the full year capped a strong 2023 performance. I'm pleased that in a year that we anticipated to be transitional and dynamic, we delivered against our strategic priorities, drove another year of healthy, profitable growth, and gain significant share in the $300 billion jewelry industry.

下午好，感謝您今天加入我們。 2023 年以高調結束，我們的團隊在整個假期中表現出色。我們第四季和全年創紀錄的收入為 2023 年的強勁業績奠定了基礎。我很高興在我們預計將是轉型和充滿活力的一年中，我們實現了我們的戰略重點，推動了又一年的健康、盈利增長，並在價值3000 億美元的珠寶行業中獲得了重要份額。

Here are a few noteworthy highlights from 2023 and Q4. Q4 net sales grew by 4% year over year to $124.3 million, which was within our revenue guidance and which represented 97% growth on a four-year stack. Full-year net sales grew 1.5% to $446.4 million, which represented 122% growth on a four-year stack. We estimate our full-year revenue growth outperformed the industry by 750 basis points, highlighting the strong resonance of our brand among jewelry purchasers.

以下是 2023 年和第四季的一些值得注意的亮點。第四季淨銷售額年增 4%，達到 1.243 億美元，這在我們的收入指導範圍內，並且四年增長了 97%。全年淨銷售額成長 1.5%，達到 4.464 億美元，四年成長 122%。我們預計我們的全年營收成長將優於業界 750 個基點，凸顯了我們的品牌在珠寶購買者中的強烈共鳴。

Our Q4 product bookings growth, excluding engagement rings, increased 28% year over year. We also drove record order volumes. Total orders grew to approximately 53,000 for the quarter and 175,000 for the year, representing 18% and 17% year-over-year growth, respectively.

我們第四季的產品預訂量（不包括訂婚戒指）年增 28%。我們的訂單量也創歷史新高。本季訂單總數增至約 53,000 份，全年訂單總數增至 175,000 份，年比分別增長 18% 及 17%。

Q4 gross margin was 58.7% or a 400-basis-point increase year over year. Full-year gross margin was 57.6%, reflecting a 430-basis-point increase year over year. Both were the highest gross margins in company history.

第四季毛利率為58.7%，較去年同期成長400個基點。全年毛利率為57.6%，較去年同期成長430個基點。兩者都是公司史上最高的毛利率。

Our Q4 adjusted EBITDA of $5.3 million or a 4.2% margin was ahead of our expectations. And we delivered $26.2 million in adjusted EBITDA for the full year or a 5.9% margin.

第四季調整後 EBITDA 為 530 萬美元，利潤率為 4.2%，超出了我們的預期。我們全年調整後 EBITDA 為 2,620 萬美元，利潤率為 5.9%。

This was our fourth consecutive year and 10th consecutive quarter as a public company delivering positive adjusted EBITDA, reflecting our discipline in operating the business profitably and our ability to manage the business nimbly. I'm incredibly grateful for and impressed by our team and their ability to execute and deliver these results in a dynamic environment.

這是我們作為上市公司連續第四年和連續第十個季度實現正調整 EBITDA，反映了我們盈利經營業務的紀律以及靈活管理業務的能力。我對我們的團隊以及他們在動態環境中執行和交付這些結果的能力感到非常感激和印象深刻。

Our focus on elevating the Brilliant Earth brand deepened our customer engagement throughout the year, ending with over 250 million organic video views. In addition, online searches for Brilliant Earth reached an all-time high in Q4. And we experienced 30% growth in our e-mail and SMS sign-ups in 2023.

我們專注於提升 Brilliant Earth 品牌，全年加深了客戶參與度，最終有機影片觀看次數超過 2.5 億次。此外，《輝煌地球》的線上搜尋量在第四季創下歷史新高。2023 年，我們的電子郵件和簡訊註冊量增加了 30%。

The positive momentum we saw across these metrics reinforces our prominence as a leader in social engagement. And our unaided brand awareness for both engagement and fine jewelry has more than doubled in less than two years.

我們在這些指標中看到的正面動力增強了我們作為社會參與領導者的地位。在不到兩年的時間裡，我們對訂婚珠寶和高級珠寶的獨立品牌認知度增加了一倍以上。

Our 2023 campaigns, supported by celebrity and influencer partnerships throughout the year and culminating with our sol collection and holiday campaigns, earned us over two billion media impressions. and our partnership with Emmy-nominated actress Camila Marone during the sol collection launch earned this recognition as one of Us Weekly magazine's Best Celebrity Brand Partnerships of 2023.

我們的 2023 年活動在全年名人和影響者合作夥伴的支持下，以我們的 sol 系列和假日活動達到高潮，為我們贏得了超過 20 億次媒體印象。我們在 sol 系列發布期間與艾美獎提名女演員 Camila Marone 的合作贏得了《美國周刊》雜誌 2023 年最佳名人品牌合作夥伴之一的認可。

More recently, we were delighted to see actresses Ayo Edebiri, Juno Temple, and Zooey Deschanel each wearing a beautiful assortment of Brilliant Earth jewelry on the red carpet at the Emmys and Oscars. This visibility and elevation of our brand is incredibly exciting and shows our continuing success in driving high-profile awareness of Brilliant Earth.

最近，我們很高興看到女演員阿約·艾德比里(Ayo Edebiri)、朱諾·坦普爾(Juno Temple) 和佐伊·丹斯切爾(Zooey Deschanel) 在艾美獎和奧斯卡頒獎典禮的紅地毯上佩戴了一系列精美的Brilliant Earth 珠寶。我們品牌的知名度和提升令人難以置信地令人興奮，並表明我們在提高 Brilliant Earth 的高知名度方面不斷取得成功。

Turning to our fine jewelry assortment, customers are increasingly seeking Brilliant Earth for their essential jewelry pieces, like tennis bracelets and necklaces as well as popular styles such as bangles and cocktail rings. In 2023, we introduced curated assortments of distinctive trend-leading pieces with the launch of several new collections, including our sol collection.

談到我們的高級珠寶系列，顧客越來越多地尋求 Brilliant Earth 為其必備珠寶單品，如網球手鍊和項鍊，以及流行款式，如手鐲和雞尾酒戒指。2023 年，我們推出了多個新系列，包括我們的 sol 系列，推出了一系列精選的獨特潮流引領單品。

We are very pleased with the results we are seeing from sol, with the collection's productivity far outpacing prior collection launches. And we ended 2023 with record performance across our fine jewelry assortment. In December, fine jewelry reached an all-time high at 21% of bookings, and we had our biggest fine jewelry quarter ever in Q4.

我們對 sol 所看到的結果非常滿意，該系列的生產力遠遠超過了之前發布的系列。2023 年，我們的高級珠寶品種取得了創紀錄的業績。12 月，高級珠寶預訂量達到歷史新高，佔預訂量的 21%，第四季度是有史以來規模最大的高級珠寶季度。

We are succeeding in driving both new and repeat fine jewelry purchases, as well as self-purchase and gifting, as we continue distinguishing ourselves as the fine jeweler of choice for today's consumer. In fact, customers whose first Brilliant Earth purchase was from our fine jewelry assortment increased 46% in 2023, highlighting the increasing awareness of Brilliant Earth as a fine jewelry destination.

我們成功地推動了新的和重複的高級珠寶購買，以及自購和送禮，因為我們繼續將自己打造為當今消費者首選的高級珠寶商。事實上，2023 年首次在 Brilliant Earth 購買我們高級珠寶系列的客戶數量增加了 46%，凸顯了 Brilliant Earth 作為高級珠寶目的地的意識日益增強。

Another area of strength was in wedding, anniversary, and fashion rings, which produced strong double-digit growth in Q4. We believe we made significant bridal share gains in 2023, which was a challenging year for the industry. In Q4, order volume for engagement rings above $10,000 increased year over year, in a positive contrast to the trend from the past few quarters.

另一個強勢領域是結婚戒指、週年紀念戒指和時尚戒指，在第四季度實現了兩位數的強勁增長。我們相信，我們在 2023 年取得了顯著的新娘份額成長，這對該行業來說是充滿挑戰的一年。第四季度，10,000 美元以上的訂婚戒指訂單量年增，與過去幾季的趨勢形成正面對比。

Additionally, the average sales price for engagement rings was up 4% year over year in Q4, demonstrating the strong resonance of our premium brand with consumers. And we continued to lead in product innovation and design last year by launching new products, like our capture collection, lab diamonds grown using carbon captured before it can be released into the atmosphere; and our 100% renewable collection, featuring lab diamonds manufactured with 100% renewable energy, both of which have resonated strongly with our customers.

此外，第四季訂婚戒指的平均銷售價格年增4%，反映了我們的高端品牌與消費者的強烈共鳴。去年，我們推出新產品，繼續引領產品創新和設計，例如我們的捕獲系列、利用捕獲的碳在釋放到大氣中之前培育的實驗室鑽石；我們的 100% 可再生系列，以 100% 可再生能源製造的實驗室鑽石為特色，這兩種產品都引起了我們客戶的強烈共鳴。

We also continued to elevate our customer experience last year across our showrooms and e-commerce platform. We opened 12 new showrooms, including smaller formats and our first indoor mall locations. And we expanded our cluster showroom footprint with multiple locations in a metro area.

去年，我們也持續提升展廳和電子商務平台的客戶體驗。我們開設了 12 個新陳列室，包括規模較小的陳列室和我們的第一個室內購物中心。我們也擴大了集群陳列室的足跡，在都會區設立了多個地點。

On the digital front, we released hundreds of new features as we continue to provide an industry-leading digital shopping experience. We're very pleased with the ongoing evolution of our omnichannel model and the key role our showrooms play in attracting new customers and deepening customer relationships.

在數位方面，我們發布了數百項新功能，繼續提供業界領先的數位購物體驗。我們對全通路模式的不斷發展以及我們的展廳在吸引新客戶和深化客戶關係方面發揮的關鍵作用感到非常滿意。

In 2023, we made great progress towards our goal to transform and modernize the jewelry industry by leading in transparency, sustainability, and compassion. We just released our third mission report, where we highlight progress towards our multiple long-range goals. Among our contributions last year, we donated over 950 volunteer hours in our communities and sponsored a meal program for approximately 1,000 children in Northern Tanzania.

2023 年，我們在透明度、永續性和同情心方面處於領先地位，在實現珠寶業轉型和現代化的目標方面取得了巨大進展。我們剛剛發布了第三份任務報告，其中強調了我們在實現多個長期目標方面取得的進展。去年我們的貢獻包括在社區捐贈了 950 多個小時的志願服務時間，並為坦尚尼亞北部約 1,000 名兒童贊助了一項膳食計劃。

We also expanded our inclusive sizing ranges to our full assortment of rings, improved the energy efficiency in our new showrooms, and reached our goal of auditing 100% of our lab diamond manufacturers for safe working conditions. You can read more about our impact in our mission report available on our Investor website, to better understand our commitment and industry leadership.

我們還將包容性的尺寸範圍擴大到我們的全系列戒指，提高了新展廳的能源效率，並實現了 100% 審核實驗室鑽石製造商安全工作條件的目標。您可以在投資者網站上的使命報告中詳細了解我們的影響，以便更好地了解我們的承諾和行業領導地位。

Turning to our outlook for 2024, we plan to continue making investments towards driving sustainable long-term growth and as always, to do so in a disciplined and responsible manner, being cognizant of the industry and macroeconomic environment. This includes continued brand amplification, product innovation, elevating our distinctive omnichannel customer experience, and continuing to drive operational efficiencies across our business.

談到 2024 年的展望，我們計劃繼續進行投資，以推動永續的長期成長，並一如既往地以紀律和負責任的方式進行投資，同時了解產業和宏觀經濟環境。這包括持續的品牌擴張、產品創新、提升我們獨特的全通路客戶體驗，以及持續提高我們整個業務的營運效率。

We are already making great progress towards our 2024 product innovation and brand amplification goals. We continue to lead in product design with our recently launched tube collection, a diamond micro pavé-focused fine jewelry collection, and curated limited-edition pieces, such as our recently released Lunar New Year pendant.

我們已經在實現 2024 年產品創新和品牌擴張目標方面取得了巨大進展。我們透過最近推出的管狀系列、以鑽石微密鑲為主的高級珠寶系列以及精心策劃的限量版作品（例如我們最近發布的農曆新年吊墜）繼續引領產品設計。

Turning to our showrooms, over the past three years, we have executed against our expansion plan by adding 28 showrooms across the country with a range of formats. New showrooms opened at least one year have paid back on average within 16 months and have demonstrated strong post-opening metro uplift. We continue to have strong conviction in showrooms as a key driver of our growth.

說到我們的展廳，過去三年來，我們執行了擴張計劃，在全國範圍內增加了 28 個不同業態的展廳。開業至少一年的新展廳平均在 16 個月內收回投資，並表現出開業後強勁的都會提升。我們仍然堅信展廳是我們成長的關鍵驅動力。

Our showroom focus for 2024 will be on continuing to amplify the consumer and brand experience in our showrooms, drawing learnings from openings of recent showrooms across a range of formats and locations, and planning for the next phase of our expansion. Understanding that retail requires constant reinvention and evolution, we believe this is a perfect opportunity to double down on our existing fleet.

我們 2024 年展廳的重點將是繼續增強展廳中的消費者和品牌體驗，從最近開設的各種業態和地點的展廳中吸取經驗教訓，並規劃下一階段的擴張。我們深知零售業需要不斷的革新和發展，我們相信這是一個絕佳的機會，可以讓我們現有的車隊加倍投入。

Customer experience enhancements will include amplified seasonal installations and visual merchandising and design enhancements to provide a richer experience of the Brilliant Earth brand for our showroom customers. As we continue to amplify the customer and brand experience in our existing showrooms, we also plan to open two to four new showrooms in the second half of this year.

客戶體驗增強將包括擴大季節性安裝以及視覺行銷和設計增強，以便為我們展廳的客戶提供更豐富的 Brilliant Earth 品牌體驗。隨著我們繼續擴大現有展廳的客戶和品牌體驗，我們也計劃在今年下半年開設兩到四個新展廳。

We believe that both continuing to enhance the consumer experience in our existing showroom fleet and selectively opening new locations will put us in an excellent position to drive both near- and long-term growth.

我們相信，繼續增強現有展廳群的消費者體驗並有選擇地開設新地點將使我們處於推動近期和長期成長的有利地位。

Turning to our financial guidance, in the first quarter, we've continued to experience a dynamic environment similar to recent quarters. In this environment, we anticipate approximately flat net sales in the first quarter compared to Q1 last year. This reflects continued share gain for Brilliant Earth in the still normalizing bridal and jewelry industry.

談到我們的財務指引，在第一季度，我們繼續經歷與最近幾季類似的動態環境。在這種環境下，我們預計第一季的淨銷售額將與去年第一季大致持平。這反映出 Brilliant Earth 在仍在正常化的婚紗和珠寶行業中的份額持續增長。

For the full year, we expect to continue making investments that will set the stage for long-term sustainable growth while also driving current and future share gains and profitability. We do expect 2024 to reflect the profitability turning point, with adjusted EBITDA margin increasing each year from 2025 to 2027. Jeff will take you through our outlook in more detail.

全年，我們預計將繼續進行投資，為長期可持續成長奠定基礎，同時推動當前和未來的股票收益和獲利能力。我們確實預期 2024 年將反映獲利轉折點，調整後的 EBITDA 利潤率從 2025 年到 2027 年每年都會增加。傑夫將帶您更詳細地了解我們的前景。

In closing, we have a compelling opportunity to make outsized share gains in this evolving environment by capitalizing on our brand strength, product differentiation, elevated consumer experience, agile data-driven business model, and strong balance sheet. We believe that our strategy combined with our ability to execute will position us well in both the near- and long-term.

最後，我們有一個絕佳的機會，可以利用我們的品牌優勢、產品差異化、提升的消費者體驗、敏捷的數據驅動業務模式和強大的資產負債表，在這個不斷變化的環境中獲得巨大的份額收益。我們相信，我們的策略與我們的執行能力相結合將使我們在短期和長期都處於有利地位。

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

這樣，我現在將把電話轉給傑夫。

Thanks, Beth, and good afternoon, everyone. As Beth highlighted, we finished the year delivering record quarter and full-year net sales, strong market share gains, and Q4 profitability that exceeded our expectations despite the challenging external environment. Let me take you through some highlights from my end.

謝謝貝絲，大家下午好。正如貝絲所強調的那樣，儘管外部環境充滿挑戰，但我們在這一年中實現了創紀錄的季度和全年淨銷售額、強勁的市場份額增長以及超出我們預期的第四季度盈利能力。讓我帶您回顧我最後的一些亮點。

In the fourth quarter, net sales of $124.3 million represented a 4% increase year over year and was within our guidance range. Full-year 2023 net sales grew 1.5% over the prior year to $446.4 million, which represented 122% growth on a four-year stack.

第四季淨銷售額為 1.243 億美元，年增 4%，處於我們的指導範圍內。2023 年全年淨銷售額比上年增長 1.5%，達到 4.464 億美元，四年增長 122%。

Q4 order volume increased 18% year over year, and full-year 2023 order volume increased 17% compared to 2022. Total orders for 2023 reached approximately 175,000, another new record for us. In addition, we realized 22% year-over-year order growth from repeat customers in 2023, illustrating the success we are having in driving repeat customer engagement.

Q4訂單量年增18%，2023年全年訂單量較2022年成長17%。2023 年訂單總數達到約 17.5 萬份，再創歷史新高。此外，我們在 2023 年實現了回頭客訂單年增 22%，這說明我們在推動回頭客參與度方面取得了成功。

For Q4, average order value or AOV was down 12% year over year, and for the full year, AOV was down 13%. For Q4, the year-over-year changes in AOV were principally driven by growth in fine jewelry, which we are thrilled to see. As fine jewelry becomes a larger and larger part of our product mix, we expect overall AOV will continue to moderate.

第四季度，平均訂單價值或 AOV 年減 12%，全年 AOV 下降 13%。第四季度，AOV 的同比變化主要是由高級珠寶的增長推動的，我們很高興看到這一點。隨著高級珠寶在我們產品組合中的比重越來越大，我們預計整體 AOV 將繼續放緩。

Looking at the collections independently, the average selling price or ASP for engagement rings increased 4% year over year in Q4. And ASP for fine jewelry increased 3% year over year in Q4. These ASP gains illustrate the strength of our premium brand and proprietary product assortment.

單獨查看各個系列，訂婚戒指的平均售價或 ASP 在第四季度同比增長 4%。第四季高級珠寶的平均售價年增 3%。這些平均售價的成長反映了我們優質品牌和專有產品種類的實力。

Q4 gross margin was 58.7%, which is a 400-basis-point expansion over the prior year and a slight sequential increase over Q3 2023. Full-year 2023 gross margin was 57.6%, a 430-basis-point increase year over year. The sustained strength of our gross margin demonstrates the competitive advantage of our premium brand, proprietary products, price optimization engine, procurement efficiencies, and our enhanced extended warranty program.

第四季毛利率為 58.7%，較上年成長 400 個基點，較 2023 年第三季略有成長。2023年全年毛利率為57.6%，較去年同期成長430個基點。我們毛利率的持續強勁證明了我們的優質品牌、專有產品、價格優化引擎、採購效率和增強的延長保固計畫的競爭優勢。

Our strong gross margin, together with disciplined cost management, contributed to us exceeding our adjusted EBITDA expectations for the fourth quarter, delivering $5.3 million in adjusted EBITDA or a 4.2% adjusted EBITDA margin. This brought our full-year 2023 adjusted EBITDA to $26.2 million or a 5.9% adjusted EBITDA margin.

我們強勁的毛利率加上嚴格的成本管理，使我們超越了第四季度調整後 EBITDA 的預期，實現了 530 萬美元的調整後 EBITDA 或 4.2% 的調整後 EBITDA 利潤率。這使得我們 2023 年全年調整後 EBITDA 達到 2,620 萬美元，調整後 EBITDA 利潤率為 5.9%。

SG&A for the quarter and the year continued to reflect our investments in growing the Brilliant Earth brand, expanding our omnichannel reach, and scaling the business. SG&A was 57.8% of net sales for the quarter and 56.6% of net sales for the year.

本季和年度的銷售、管理費用（SG&A）繼續反映了我們在發展 Brilliant Earth 品牌、擴大全通路覆蓋範圍和擴展業務方面的投資。SG&A 佔本季淨銷售額的 57.8%，佔全年淨銷售額的 56.6%。

Adjusted SG&A, which nets out items that are added back in our presentation of adjusted EBITDA such as equity-based compensation expense, showroom pre-opening expense, depreciation and amortization, and non-recurring charges, was 54.5% of net sales for Q4, representing approximately 900 basis points of deleverage year over year from investments in marketing, our team, and other G&A.

調整後的SG&A，扣除了我們在調整後EBITDA 的列報中添加的項目，例如基於股權的薪酬費用、展廳開業前費用、折舊和攤銷以及非經常性費用，佔第四季度淨銷售額的54.5%，代表來自行銷、我們的團隊和其他一般管理費用投資的逐年去槓桿化約 900 個基點。

Marketing costs as a percentage of net sales grew by approximately 570 basis points year over year for the quarter. Our ongoing investments in building the Brilliant Earth brand continue to pay off in terms of growing awareness and demand for Brilliant Earth, as we have seen in our strong order growth, market share gains, and higher brand awareness.

本季行銷成本佔淨銷售額的百分比年增約 570 個基點。我們對打造Brilliant Earth 品牌的持續投資繼續在人們對Brilliant Earth 的認知度和需求不斷增長方面獲得回報，正如我們在強勁的訂單增長、市場份額增長和更高的品牌知名度中所看到的那樣。

While we saw deleverage on a year-over-year basis due to the headwinds in the bridal industry and the investments made in the largest brand campaign in our company's history, we believe that these investments will drive continuing growth of brand awareness and support long-term profitable growth.

雖然由於婚紗行業的不利因素以及我們公司歷史上最大的品牌活動的投資，我們看到了逐年去槓桿化，但我們相信這些投資將推動品牌知名度的持續增長，並支持長期長期盈利增長。

During the quarter, adjusted employee costs were higher as a percentage of net sales by approximately 80 basis points year over year. As we discussed previously, we are focusing on investing in a disciplined fashion in both new showroom employees as well as key corporate talent to support our current and future growth. Adjusted other G&A as a percentage of net sales increased by approximately 250 basis points year over year during the quarter, including higher showroom operating costs such as rent.

本季度，調整後的員工成本佔淨銷售額的百分比年增約 80 個基點。正如我們之前所討論的，我們專注於以嚴格的方式投資新的展廳員工以及關鍵的企業人才，以支持我們當前和未來的成長。本季調整後的其他一般及行政費用佔淨銷售額的百分比年增約 250 個基點，其中包括租金等較高的展廳營運成本。

Our balanced approach in 2023 allowed us to realize significant market share gains while making investments for long-term growth and delivering in-year profitability. Our business model has also delivered working capital efficiency. Our inventory turns in 2023 significantly exceeded the industry average.

我們在 2023 年採取的平衡方法使我們能夠實現顯著的市場份額增長，同時為長期增長進行投資並實現年內盈利。我們的商業模式也提高了營運資金效率。2023 年我們的庫存週轉率顯著超過產業平均。

In addition, we ended 2023 with a $1.5 million decrease in inventory, ending the year at $37.8 million compared to $39.3 million in 2022, even with our growth in fine jewelry and the opening of 12 new showrooms, highlighting the benefits of our asset-light model and our ability to use data to efficiently and dynamically manage working capital. We finished the year once again with no net debt and a strong balance sheet.

此外，儘管我們的高級珠寶業務有所增長並開設了12 個新展廳，但截至2023 年，我們的庫存仍減少了150 萬美元，庫存為3,780 萬美元，而2022 年為3,930 萬美元，這突顯了我們輕資產的優勢模型以及我們使用數據高效、動態管理營運資金的能力。我們再次以沒有淨債務和強勁的資產負債表結束了這一年。

Our cash balance increased year over year, ending at $156 million as of December 31, 2023, even with the investments we made to expand our showroom footprint and after paying down over $3 million in debt. Our ability to decrease inventory, increase cash, pay down debt, and operate with negative working capital in 2023 while accounting for substantial expansion speaks to the exceptional execution by our team, our agile business model, and our discipline in cost management.

我們的現金餘額逐年增加，截至 2023 年 12 月 31 日，現金餘額為 1.56 億美元，儘管我們為擴大展廳面積而進行了投資，並償還了超過 300 萬美元的債務。我們有能力在 2023 年減少庫存、增加現金、償還債務並以負營運資本運營，同時實現大幅擴張，這證明了我們團隊的卓越執行力、靈活的業務模式以及成本管理紀律。

All of this was accomplished during a year with a challenging consumer backdrop. Our strong balance sheet puts us in a position to continue to make strategic investments in this environment.

所有這一切都是在消費者背景充滿挑戰的一年內完成的。我們強大的資產負債表使我們能夠在這種環境下繼續進行策略性投資。

I would also like to highlight that as we continue to manage the business in an agile fashion to maximize our ability to capture opportunities as they arise, we recently amended our debt facility to suspend the testing of our consolidated fixed-charge coverage ratio covenant through Q2 2024 and added a liquidity covenant over this same period. This will provide additional flexibility in making appropriate investments in the first half of the year.

我還想強調的是，隨著我們繼續以敏捷的方式管理業務，以最大限度地提高我們抓住機會的能力，我們最近修改了我們的債務融資，以在第二季度暫停對我們的綜合固定費用覆蓋率契約的測試2024 年，並在同一時期增加了流動性契約。這將為上半年進行適當的投資提供額外的靈活性。

We also announced a share repurchase program in which the Board authorized the repurchase of up to $20 million of our class A common stock through December 8, 2026. As a growth company, we are keenly focused on seizing value creation opportunities, including when we see an opportunity to strategically buy back our common stock.

我們也宣布了一項股票回購計劃，董事會授權在 2026 年 12 月 8 日之前回購最多 2,000 萬美元的 A 類普通股。作為一家成長型公司，我們非常注重抓住價值創造機會，包括當我們看到有機會策略性回購普通股時。

Our strong balance sheet provides the ability to execute this share repurchase program and to realize the significant opportunity we see ahead. While we did not make any repurchases in 2023, given that we adopted the share repurchase program late in the year, we intend to use this program strategically while balancing our overall investment decisions, including consideration of factors such as trading volumes and our public floats.

我們強大的資產負債表使我們有能力執行該股票回購計劃並實現我們未來看到的重大機會。雖然我們在2023 年沒有進行任何回購，但考慮到我們在年底採取了股票回購計劃，我們打算策略性地使用該計劃，同時平衡我們的整體投資決策，包括考慮交易量和公眾持股量等因素。

Turning to our outlook for 2024 and beyond, we expect to continue making investments that will set the stage for long-term sustainable growth while also driving in-year growth, share gains, and profitability in the context of a still normalizing industry. Our outlook includes the assumption that the path towards a more normalized bridal market continues over the next few years and that the broader economic environment remains relatively unchanged.

談到我們對 2024 年及以後的展望，我們預計將繼續進行投資，為長期可持續增長奠定基礎，同時在行業仍在正常化的背景下推動年內增長、股票收益和盈利能力。我們的展望包括這樣的假設：未來幾年新娘市場將繼續走向更正常化的道路，並且更廣泛的經濟環境保持相對不變。

For Q1, we expect net sales between $96.5 million and $98.5 million. This represents approximately negative 1% to positive 1% growth over Q1 2023. This also reflects continued share gain for Brilliant Earth through this transitional period for the bridal and jewelry industry.

我們預計第一季的淨銷售額將在 9,650 萬美元至 9,850 萬美元之間。這意味著與 2023 年第一季相比，成長率約為負 1% 到正 1%。這也反映出 Brilliant Earth 在新娘和珠寶業的過渡時期持續獲得份額成長。

We expect Q1 adjusted EBITDA of $1 million to $2.5 million. This includes an expectation of similar gross margins as we saw in the second half of last year, annualization of investments made during 2023, as well as the fact that, seasonally, the first quarter is our lowest-net-sales quarter of the year. Our expenses such as rent and employee expenses do not have a significant degree of seasonality. Therefore, seasonally lower Q1 revenue contributes to lower Q1 adjusted EBITDA.

我們預計第一季調整後 EBITDA 為 100 萬至 250 萬美元。這包括我們對去年下半年類似毛利率的預期、2023 年投資的年化率，以及從季節性角度來看，第一季是我們今年淨銷售額最低的季度。我們的租金和員工費用等費用沒有明顯的季節性。因此，第一季營收季節性下降導致第一季調整後 EBITDA 下降。

For 2024, our current expectation is for net sales between $455 million and $469 million, which is approximately 2% to 5% year-over-year growth, with acceleration as we progress through the year. This represents positive momentum in the context of the still normalizing bridal and jewelry industry.

對於 2024 年，我們目前的預期是淨銷售額在 4.55 億美元至 4.69 億美元之間，同比增長約 2% 至 5%，並且隨著我們全年的進展而加速。在婚禮和珠寶行業仍在正常化的背景下，這代表了積極的勢頭。

As Beth mentioned, we believe there are compelling opportunities to invest in this environment to drive long-term growth. These include investments to amplify brand awareness, enhance the showroom consumer experience, and technology investments including in AI and machine learning to drive operational efficiency.

正如貝絲所提到的，我們相信在這種環境中存在著令人信服的投資機會，以推動長期成長。其中包括擴大品牌知名度、增強展廳消費者體驗的投資，以及人工智慧和機器學習等技術投資，以提高營運效率。

We are also annualizing certain costs, such as showroom staff and rent expenses, from investments made last year. As a result of these investments, we expect adjusted EBITDA for the year between $14 million and $22 million. We expect some modest sequential increase in adjusted EBITDA from Q1 to Q2, with a significant majority of adjusted EBITDA in the second half of the year.

我們也將去年投資中的某些成本進行年度化，例如陳列室員工和租金費用。由於這些投資，我們預計今年調整後的 EBITDA 將在 1,400 萬美元至 2,200 萬美元之間。我們預計第一季至第二季調整後 EBITDA 將出現小幅環比成長，其中調整後 EBITDA 的大部分出現在下半年。

Similar to our previously mentioned comments on Q1, we expect gross margin for the year to be at a similar level as H2 of last year. We expect quarterly marketing expense as a percentage of net sales to be similar to the 2023 average and to drive leverage in marketing expense as a percentage of sales in Q4.

與我們之前提到的第一季的評論類似，我們預計今年的毛利率將與去年下半年的水平相似。我們預計季度行銷費用佔淨銷售額的百分比將與 2023 年的平均值相似，並將推動第四季度行銷費用佔銷售額的百分比的槓桿作用。

This reflects disciplined, continued investment in the business as we believe that there are compelling investment opportunities in this environment that will deliver long-term profitable growth and shareholder value while still delivering in-year profitability.

這反映了對業務的嚴格、持續的投資，因為我們相信在這種環境下存在著令人信服的投資機會，將帶來長期的盈利增長和股東價值，同時仍能帶來年內的盈利能力。

As we look beyond 2024, we would also like to introduce a medium-term growth outlook, which will provide visibility into how we plan to manage the business as the bridal and jewelry industry gradually normalize over the next few years. For net sales, we expect net sales growth accelerating from low-to-mid single-digit growth this year to a low teens growth rate in 2027.

展望 2024 年後，我們也想介紹中期成長前景，這將使我們能夠了解隨著婚紗和珠寶業在未來幾年逐漸正常化，我們計劃如何管理業務。對於淨銷售額，我們預計淨銷售額成長將從今年的低至中個位數成長加速至 2027 年的低兩位數成長率。

We expect this to be driven by the gradual normalization of engagements over the next few years, growth from existing showrooms, a measured acceleration of new showroom openings compared to 2024, continued outperformance in fine jewelry and other non-engagement assortments, as well as growth of our brand awareness.

我們預計，這一增長的推動因素包括未來幾年訂婚活動的逐漸正常化、現有展廳的增長、與 2024 年相比新展廳開業的加速、高級珠寶和其他非訂婚品類的持續出色表現以及增長我們的品牌知名度。

We expect our gross margin to remain in the high 50% through 2027. While we do not expect the same pace of annual expansion that we achieved in recent years as we strike a balance between driving top-line growth and margin expansion, we do see further opportunities to increase gross margin through our premium brand, proprietary product collections, price optimization engine, procurement efficiencies, and our warranty program.

我們預計到 2027 年，我們的毛利率將保持在 50% 的高點。雖然我們預計在推動營收成長和利潤擴張之間取得平衡時，年度擴張速度不會與近年來相同，但我們確實看到了透過我們的優質品牌、專有產品系列、價格優化引擎、採購效率和我們的保固計劃。

On the expense side, from 2025 to 2027, we expect to increasingly drive leverage in marketing costs compared to 2024. We expect that growing brand awareness, increased conversion from our showrooms, and continued success in fine jewelry will all contribute to driving increasing leverage in marketing costs from 2025 to 2027.

在費用方面，從 2025 年到 2027 年，我們預計與 2024 年相比，行銷成本的槓桿率將持續提高。我們預計，品牌知名度的提高、展廳轉換率的提高以及高級珠寶領域的持續成功都將有助於推動 2025 年至 2027 年行銷成本槓桿的增加。

We anticipate that 2024 will represent the peak of our investment growth as a percentage of net sales and expect profitability to increase sequentially beginning in 2025 through 2027, with adjusted EBITDA margin reaching double digits in 2027.

我們預計 2024 年將代表我們的投資成長佔淨銷售額百分比的峰值，並預計獲利能力將在 2025 年至 2027 年連續成長，調整後 EBITDA 利潤率將在 2027 年達到兩位數。

In closing, our performance for the quarter and the year reinforces the ability of our brand, seamless omnichannel experience, unique asset-light business model, and exceptional team to deliver profitable growth and share gains in a capital-efficient manner. And we believe our continued discipline and balanced approach this year and over the next few years positions us well to deliver strong shareholder value.

最後，我們本季和全年的業績增強了我們的品牌能力、無縫的全通路體驗、獨特的輕資產業務模式以及卓越的團隊，以資本高效的方式實現盈利增長和分享收益。我們相信，我們今年和未來幾年持續的紀律和平衡的方法使我們能夠很好地提供強大的股東價值。

With that, I'll turn the call back over to the operator for questions.

這樣，我會將電話轉回給接線生詢問問題。

(Operator Instructions) Randal Konik, Jefferies.

（操作員說明）Randal Konik，Jefferies。

Hey, thanks, guys. I guess, question for Beth and then question for Jeff. I guess, Beth, I just want to get some perspective from you to unpack the idea of a normalizing environment.

嘿，謝謝，夥計們。我想，先問貝絲，然後再問傑夫。我想，貝絲，我只是想從你那裡得到一些觀點來解釋正常化環境的想法。

Kind of give us your perspective on where we are in that kind of pathway. And what does normal look like to you from an industry perspective as we kind of think about the next couple of years? Because I'm trying to get an understanding of the baseline you're looking at from an industry growth perspective and appreciating all those share gains that you're undergoing in the industry.

請告訴我們您對我們在這條道路上所處位置的看法。當我們思考未來幾年時，從產業角度來看，正常情況是什麼樣的？因為我試圖從行業成長的角度了解您所看到的基線，並欣賞您在行業中所經歷的所有份額成長。

And then, Jeff, I guess, what I'd like to understand from you is when you unpack the commentary -- or can we unpack commentary around double-digit margins by 2027? I just really -- I've always been focused on the SG&A portion of the business.

然後，傑夫，我想，我想從你那裡了解的是，當你解開評論時——或者我們可以在 2027 年之前解開兩位數利潤的評論嗎？我真的——我一直專注於業務的SG&A 部分。

So is it your view that most of the incremental degradation in EBITDA margin has been just marketing expense and we are going to kind of keep that now like going flat after 2024? I just want to understand the different areas of SG&A where you're going pull back or keep flat or whatever it is, as we get towards that double-digit EBITDA margin in, again, in 2027. Thanks, guys.

那麼您是否認為 EBITDA 利潤率的大部分增量下降只是行銷費用，我們現在會保持這種情況，就像 2024 年之後持平嗎？我只是想了解 SG&A 的不同領域，當我們在 2027 年再次實現兩位數的 EBITDA 利潤率時，您將在哪些方面進行縮減或保持持平或其他什麼。多謝你們。

Great. Well, thanks, Randy, for the question. In terms of how we think about engagement rings, we do expect to see more gradual normalization over the next several years.

偉大的。嗯，謝謝蘭迪提出這個問題。就我們對訂婚戒指的看法而言，我們確實期望在未來幾年內看到更逐步的正常化。

Keep in mind that our customer demographic, the Gen Z-millennial audience, they're still facing continuing pressures, so inflation, rent hikes. And they're still adjusting to a lot of the changes that they've been experiencing over the last couple of years.

請記住，我們的客戶群體，即 Z 世代千禧世代觀眾，他們仍然面臨著持續的壓力，例如通貨膨脹、租金上漲。他們仍在適應過去幾年經歷的許多變化。

So we do expect to see this category come back. It's a very resilient category where people end up shopping with a budget. So overall, this is -- the overall jewelry industry is $300 billion. We're expecting that mid-single-digit growth in the long-term. But we just recognize that we are experiencing a little bit of headwinds right now, and we do expect that to normalize.

所以我們確實希望看到這個類別的回歸。這是一個非常有彈性的類別，人們最終會在預算有限的情況下進行購物。總的來說，珠寶業的總價值為 3000 億美元。我們預計長期將實現中個位數成長。但我們只是認識到我們現在遇到了一些阻力，我們確實希望這種情況正常化。

I think the great aspect of what we shared in the call earlier is just the significant share gains that we've experienced. So it's been a challenging environment, but we're executing exceptionally well. I also think in a time when you start to see more challenges in the bridal segment, recognize that two-thirds of our industry are independents.

我認為我們之前在電話會議中分享的最重要的方面就是我們所經歷的顯著的份額增長。因此，這是一個充滿挑戰的環境，但我們的執行情況非常好。我還認為，當您開始看到婚紗行業面臨更多挑戰時，請認識到我們行業的三分之二是獨立的。

And so in more challenging times, you do see an acceleration of closures within these independents. So as we're gaining more share as a strong omnichannel brand, we just see an enormous opportunity as we look to further-out years.

因此，在更具挑戰性的時期，您確實會看到這些獨立公司的關閉速度加快。因此，隨著我們作為一個強大的全通路品牌獲得更多份額，我們在未來幾年看到了巨大的機會。

And then, Randy, with regard to your question about SG&A and the path to adjusted EBITDA, wanted to talk through a few different things. We have seen deleverage this past year in marketing expenses as we've been making investments, including the largest brand campaign in our company's history in Q4, in a still normalizing environment.

然後，蘭迪，關於您關於 SG&A 以及調整後 EBITDA 路徑的問題，想談談一些不同的事情。去年，我們看到行銷費用去槓桿化，因為我們一直在進行投資，包括在第四季度在仍處於正常化的環境中進行公司歷史上最大的品牌活動。

I think we've been seeing a lot of very strong results as a result of these efforts, including the share gains that we've been making, strong order growth, brand awareness. And we believe that these are really setting the stage for both current and long-term growth.

我認為，由於這些努力，我們已經看到了許多非常強勁的成果，包括我們一直在取得的份額收益、強勁的訂單成長和品牌知名度。我們相信，這些確實為當前和長期成長奠定了基礎。

Our approach, as you know, has always been to be very dynamic in terms of how we're thinking about allocating our marketing spend and focused on driving efficiencies. And we're very confident in our approach and the big reason why we've been successful as a digital-first company.

如您所知，我們的方法一直是非常動態地考慮如何分配行銷支出並專注於提高效率。我們對自己的方法非常有信心，這也是我們作為數位優先公司取得成功的重要原因。

In terms of the outlook as we keep going forward, for this year, we're expecting marketing spend at a similar level as the percentage of sales as this past year, and actually getting to leverage year over year as we get to Q4. And then looking further ahead from 2025 to 2027, we expect to progressively drive additional leverage in each year as we have success with growing our brand awareness, getting uplift from our showroom portfolio, driving success in areas like fine jewelry. And that'll be a meaningful contributor towards our path to increasing our adjusted EBITDA in 2027 to the levels that I spoke of.

就我們繼續前進的前景而言，我們預計今年的營銷支出與去年的銷售額百分比水平相似，並且在進入第四季度時實際上會逐年發揮槓桿作用。然後展望 2025 年至 2027 年，隨著我們成功提高品牌知名度、提升展廳產品組合、推動高級珠寶等領域的成功，我們預計每年都會逐步提高槓桿率。這將為我們在 2027 年將調整後 EBITDA 提高到我所說的水平做出有意義的貢獻。

Yeah, right. So just as a follow-up there, because it sounds like you would assume that through 2027, we keep the gross margins in the high 50s. A, is that correct? And then B, out to 27, would that then assume that you would keep marketing dollars kind of flattish out to that 27 year to get that leverage?

是的，對。因此，作為後續行動，因為聽起來您會假設到 2027 年，我們的毛利率將保持在 50 左右。答，這樣說對嗎？然後 B，到 27 年，是否會假設您將在 27 年保持行銷資金持平以獲得這種槓桿作用？

Yeah. So first, with respect to gross margins, yes, we do expect gross margins to be in the high 50s through that time horizon through 2027. We do see opportunities to continue to drive some incremental gross margin improvements through areas like leveraging the strength of our brand and our products, the price optimization engine, and other areas.

是的。首先，就毛利率而言，是的，我們確實預計到 2027 年，毛利率將在 50 多美元左右。我們確實看到了透過利用我們的品牌和產品的實力、價格優化引擎和其他領域等領域繼續推動毛利率增量成長的機會。

So we do see opportunities there, although not at the same level of magnitude that we've seen in recent years, with a few hundred bps per year of improvement as we're striking the balance between top line and gross margin expansion. So we do see opportunities there.

因此，我們確實看到了那裡的機會，儘管程度不如我們近年來看到的水平，但隨著我們在營收和毛利率擴張之間取得平衡，每年都會有數百個基點的改善。所以我們確實在那裡看到了機會。

And then with regards to marketing, how I think about it is we -- as always, be balanced in the approach and look for opportunities to drive efficiency, as we're still growing brand awareness and growing the overall business to manage within there to get to that overall increase in adjusted EBITDA.

然後關於行銷，我的想法是我們——一如既往，在方法上保持平衡，並尋找提高效率的機會，因為我們仍在提高品牌知名度並發展整體業務以管理其中獲得調整後 EBITDA 的整體成長。

We do expect that as a percentage of sales, it will go down over each year from '25, '26, and '27. And then we'll contribute towards that EBITDA, overall, going up to that double-digit level as we get top-line growth getting to the low teens by 2027.

我們確實預計，從 25 年、26 年和 27 年開始，它佔銷售額的百分比將會逐年下降。然後，隨著我們的營收成長到 2027 年達到兩位數，我們將為整體 EBITDA 做出貢獻，達到兩位數水準。

Thank you.

謝謝。

Thanks, Randy.

謝謝，蘭迪。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Hi. It's Tom, on for Oliver. Beth and Jeff, if you could just talk about the strength you're seeing across price points and really the main drivers of the ASP increase in Q4. And then it'd be great to hear your view on the competitive environment in the fine jewelry category from both the pricing and the innovation standpoint.

你好。是湯姆，替奧利佛發言。Beth 和 Jeff，請您談談您所看到的跨價格點的優勢以及第四季度平均售價增長的主要驅動力。然後，很高興聽到您從定價和創新的角度對高級珠寶類別競爭環境的看法。

Sure, absolutely. So as it relates to our ASP increase, we were really pleased to see that ASPs were up for the engagement ring selection, 4%. And we saw particular strength in that $10,000-plus customers. So I think it speaks to a lot of the investments that we've been making in terms of creating that premium brand and customer experience.

當然，絕對。因此，由於與我們的平均售價成長相關，我們非常高興地看到訂婚戒指選擇的平均售價上漲了 4%。我們在 10,000 美元以上的客戶中看到了特別的優勢。因此，我認為這說明了我們在創建優質品牌和客戶體驗方面所做的大量投資。

And overall, because of the experience we're providing as well as a differentiated product, we're really able to drive higher price points. We continue to look across a variety of price points, make sure that we are introducing a curated selection that's highly productive. And I think we're also just seeing that that customer is responding really well to some of these investments that we're making.

總的來說，由於我們提供的體驗以及差異化的產品，我們確實能夠推動更高的價格點。我們持續關注各種價位，確保我們推出高效的精選產品。我認為我們也剛剛看到客戶對我們正在進行的一些投資反應非常好。

So as it relates to the fine jewelry category, another, I think, really bright spot for the company -- the fact that we hit the strongest fine jewelry quarter ever with 20% of our bookings in December, just speaks to the strength in all of the efforts that we're making.

因此，就高級珠寶類別而言，我認為該公司的另一個真正亮點是，我們在12 月創下了有史以來最強勁的高級珠寶季度訂單，佔預訂量的20%，這一事實說明了公司在所有方面的實力。我們正在做出的努力。

In terms of fine jewelry, I think what we're really focused on is providing a really curated assortment. And the strategy that we're introducing, which is to introduce innovation, really fresh trend-forward product, and then amplifying that product differentiating across the marketing, across our channels is really, I think, some of the -- what's been sparking strong engagement and really strong results there.

就高級珠寶而言，我認為我們真正關注的是提供真正精心策劃的品種。我認為，我們正在引入的策略，即引入創新、真正新鮮的潮流產品，然後在整個行銷和我們的管道中放大該產品的差異化，這確實是一些——正在引發強烈的反應。那裡的參與度和真正強勁的成果。

And we've been doing this across a variety of price points. I think the fact that we're able to drive repeat and drive new, as well as self-purchasing gifting, kind of speaks to the efforts that we have. And one of the statistics that I was also proud of is the fact that we have a 46% increase in customers whose first purchase is fine jewelry.

我們一直在不同的價位上這樣做。我認為，我們能夠推動回頭客、推動新產品以及自我購買禮物，這一事實在某種程度上說明了我們所付出的努力。我還引以為傲的統計數據之一是，首次購買高級珠寶的客戶數量增加了 46%。

So we're increasingly being known as a destination for higher-price-point fine jewelry and really, across a wide range of assortments. So we're able to meet customers where they are.

因此，我們越來越被認為是高價位高級珠寶的目的地，而且種類繁多。因此我們能夠在客戶所在的地方與他們會面。

Great, and a follow-up on the opening of the new mall format. Would be great to hear any color you have on productivity and performance there. And then any considerations we should model in pre-opening costs and inventory build as you continue to open more mall formats in the future?

太棒了，這是新購物中心業態開幕的後續。很高興聽到您對那裡的生產力和性能有什麼看法。那麼，當您未來繼續開設更多購物中心業態時，我們應該在開業前成本和庫存建設方面考慮哪些因素？

Yeah. What I would say about the mall locations -- we recognize it's early. Definitely pleased with the locations that we've selected. What we're encouraged by is that we've seen good foot traffic both inside and outside the showrooms and in particular, for walk-ins.

是的。關於購物中心的位置，我想說的是──我們知道現在還太早。我們對所選的地點非常滿意。令我們感到鼓舞的是，我們看到陳列室內外的人流量都很大，尤其是步入式參觀的人流。

So we've been able to accommodate that appointment experience that we are so well known for. And we're also encouraged that for our mall locations, the walk-in business is double the share of the business versus the rest of the fleet.

因此，我們能夠提供眾所周知的預約體驗。我們也感到鼓舞的是，對於我們的購物中心來說，步入式業務的業務份額是其他業務的兩倍。

So it really showcases how important that walk-in experience is. And we really like this combination of walk-ins plus appointments. So overall, I would say still early in terms of our -- we only have three of these locations, but seeing promising results.

所以它確實展現了步入式體驗的重要性。我們真的很喜歡這種上門拜訪和預約的組合。總的來說，我想說，就我們而言，還處於早期階段——我們只有三個這樣的地點，但看到了有希望的結果。

And then in terms of the inventory costs and build, as you know, we do have some inventory needs for our showrooms as we open them. But we do run in a very inventory-efficient fashion, leveraging things like our virtual inventory so that we don't have to scale up the inventory at the same level that the rest of the industry does as we build out the fleet.

然後就庫存成本和建造而言，如您所知，當我們開放展廳時，我們確實有一些庫存需求。但我們確實以非常高效的庫存方式運營，利用虛擬庫存等方式，這樣我們就不必像行業其他公司在建立機隊時那樣擴大庫存。

And I think one point that we're proud of is that over this past year, we were actually able to decrease inventory as we opened 12 new showrooms and saw success in areas like fine jewelry. And I think that's a very helpful data point to show you how we can be nimble and agile to keep working capital efficient, even as we open new showrooms.

我認為值得我們自豪的一點是，在過去的一年裡，我們開設了 12 個新展廳，並在高級珠寶等領域取得了成功，實際上能夠減少庫存。我認為這是一個非常有用的數據點，可以向您展示我們如何靈活敏捷地保持營運資金效率，即使我們開設新的陳列室也是如此。

So we will add as we open new showrooms. But as we've seen with our recent results, we'll do so in an efficient fashion.

因此，我們將在開設新陳列室時添加。但正如我們從最近的結果中看到的那樣，我們將以高效的方式做到這一點。

Edward Yruma, Piper Sandler.

愛德華·尤魯瑪，派珀·桑德勒。

Hey, good afternoon, guys. Thanks for taking the questions. I guess, first, some interesting commentary on some of the repositioning of the store fleet and adding new functions, new features. Is that a capital-intensive process, or you expect to run this through the expense line?

嘿，下午好，夥計們。感謝您提出問題。我想，首先，關於商店隊伍的一些重新定位和添加新功能、新功能的一些有趣的評論。這是一個資本密集型流程，還是您希望透過費用線來運作？

And I guess, what gives you the confidence that now is really the time to embrace kind of multi-channel retailing? And then as a follow-up, good to hear the commentary on $10,000 and higher price points. Do you think that it's because you're seeing just better engagement trends there? Or have you done something proactively on the assortment side that's allowing you to penetrate this premium side of the market more effectively? Thank you.

我想，是什麼讓您有信心現在確實是擁抱多通路零售的時候了？接下來，很高興聽到有關 10,000 美元及更高價位的評論。您認為這是因為您在那裡看到了更好的參與趨勢嗎？或者您在品類方面積極採取了一些措施，使您能夠更有效地滲透到高端市場？謝謝。

Great. Well, thanks for the question, Ed. In terms of how we're thinking about the overall store fleet, maybe Jeff, do you want to just talk about how that's flowing through?

偉大的。嗯，謝謝你的提問，艾德。就我們如何考慮整個商店隊伍而言，也許傑夫，您想談談它是如何流動的嗎？

Yeah. So for the investments in the store fleet, we're going to approach how we make the amplification of the experiences in the existing store fleet similar to how we open new showrooms.

是的。因此，對於店群的投資，我們將採用類似開設新陳列室的方式來擴大現有店群的體驗。

And that is to say that we'll do it in a capital-efficient way, really trying to drive strong ROI as we invest in the showrooms. And so I think the overall approach will be to do so capital efficiently and in a targeted way, where we're really seeing results.

這就是說，我們將以資本效率高的方式做到這一點，在投資展廳時真正努力推動強勁的投資報酬率。因此，我認為整體方法將是以有效的資本和有針對性的方式這樣做，我們確實看到了結果。

And that's been our approach to opening and managing the showrooms and just overall managing our capital. So we're going to do it, but we're going to do it in a targeted way.

這就是我們開設和管理陳列室以及整體管理我們資本的方法。所以我們會這麼做，但我們會以有針對性的方式來做。

And I think what I would add to that is, we feel really great about the customer experience that we've created. But we continue to realize that we need to evolve the overall experience and have a big focus internally just in terms of doubling down on such a strong fleet that we have already.

我想我要補充的是，我們對我們創造的客戶體驗感到非常滿意。但我們仍然意識到，我們需要發展整體體驗，並在內部專注於加強我們已經擁有的如此強大的機隊。

In terms of how we think about multi-channel retailing, I mean, I would say that we have been thinking about an omnichannel approach from the beginning and really thinking about looking at multiple formats, where the location and the metro market really dictate what type of format we have.

就我們如何看待多通路零售而言，我的意思是，我們從一開始就一直在考慮全通路方法，並真正考慮考慮多種業態，位置和地鐵市場真正決定了哪種類型我們擁有的格式。

So I wouldn't say that the approach has necessarily changed there. I would just say that we recognize that we've been opening a large number of showrooms. At this point, we want to just make sure that we are maximizing the productivity, that we're enhancing the experience as we lay the foundation for additional acceleration of showroom expansion into 2025 and beyond.

所以我不會說這種方法一定會改變。我只想說，我們認識到我們已經開設了大量的陳列室。此時，我們只想確保最大限度地提高生產力，增強體驗，為 2025 年及以後進一步加速展廳擴張奠定基礎。

And then I guess, your second question, as it relates to the $10,000-plus, I would say that it's really a result of the engagement we're seeing from our customers and some of the more brand-enhancing activities that we're doing. So we know that we're resonating with a higher-price-point, higher-income customer. We also know that the showrooms do end up driving a higher ASP. And as we see success with the showrooms, I think that that's naturally one of the consequences.

然後我想，你的第二個問題，因為它涉及 10,000 美元以上，我想說這實際上是我們從客戶那裡看到的參與度以及我們正在做的一些更多品牌提升活動的結果。所以我們知道我們正在與更高價位、更高收入的客戶產生共鳴。我們也知道，陳列室最終確實會推動更高的平均售價。當我們看到陳列室的成功時，我認為這自然是後果之一。

Thanks so much.

非常感謝。

Thanks, Ed.

謝謝，艾德。

Thanks, Ed.

謝謝，艾德。

Ashley Owens, KeyBanc Capital Markets.

Ashley Owens，KeyBanc 資本市場。

Great. Thanks. Just wanted to circle back really quickly on fine. Just curious on your thoughts as to how large this portion of the business can become, just seeing that 20% in December.

偉大的。謝謝。只是想很快就回來。只是好奇您對這部分業務能發展到多大的想法，12 月就看到了 20%。

Do you think there's a scenario down the road where this grows rapidly and surpasses engagement? Or how are you thinking about your product mix and growth opportunities seeing the reception you have in fine?

您認為未來這種情況是否會迅速增長並超越參與度？或者，看到您受到的好評，您如何看待您的產品組合和成長機會？

I think that this is very much a massive opportunity for the company. If you look at most independents and other jewelers, you really see the mix of fine and bridal about 50/50. So we have a ways to go before we get there.

我認為這對公司來說是一個巨大的機會。如果您觀察大多數獨立珠寶商和其他珠寶商，您會發現精品珠寶和婚紗珠寶的比例約為 50/50。因此，在到達那裡之前，我們還有很長的路要走。

It's definitely growing incredibly fast. And I think we're investing a lot in order to become that fine jewelry destination. But I see a huge potential for the company.

它的成長速度絕對快得令人難以置信。我認為我們正在投入大量資金，以成為高級珠寶目的地。但我看到了該公司的巨大潛力。

Great. Thanks.

偉大的。謝謝。

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Hi, everyone. As you think about 2024 compared to 2023, given the consumer and how your mix shift is adjusting, what should we be looking at as we compare against anything to note on the cadence?

大家好。當您考慮 2024 年與 2023 年的比較時，考慮到消費者以及您的混合轉變如何調整，當我們與節奏上需要注意的任何內容進行比較時，我們應該關注什麼？

And then, Beth -- and sorry about my voice. I've lost my voice. And then, Beth, as you think about fine jewelry and engagement and overall average selling price points, what's happening with raw materials and newness in the product offering and how you envision pricing in 2024 compared to 2023? Thank you.

然後，貝絲——對我的聲音感到抱歉。我已經失聲了然後，Beth，當您考慮高級珠寶、參與度以及總體平均銷售價格點時，原材料和產品供應的新穎性發生了什麼變化，以及您對 2024 年與 2023 年相比的定價有何看法？謝謝。

Yeah. Well, maybe I'll start with the kind of the last question that you asked, Dana, and thanks for the question. Really, as we think about pricing, this is a very dynamic aspect that we manage the business very nimbly.

是的。好吧，也許我會從你問的最後一個問題開始，達納，謝謝你的問題。事實上，當我們考慮定價時，這是一個非常動態的方面，我們可以非常靈活地管理業務。

So he way that we think about it is we provide a variety of different assortments within different price buckets. And as we see enhanced productivity, we're constantly introducing new products and shaping the assortment based on how the customers are responding. We're also really thinking about, how do we maximize margin while also considering that we're driving growth?

因此，我們的想法是，我們在不同的價格範圍內提供各種不同的品種。隨著我們看到生產力的提高，我們不斷推出新產品，並根據客戶的反應來調整產品組合。我們也在真正思考，如何在推動成長的同時最大化利潤？

So I don't know if I have a crystal ball for 2024 in pricing. Other than that, we continue to believe we have a real pricing advantage based on the brand and the differentiation that we have. And we'll continue to just continue to test and learn there.

所以我不知道我是否有 2024 年定價的水晶球。除此之外，我們仍然相信，基於我們的品牌和差異化，我們擁有真正的價格優勢。我們將繼續在那裡進行測試和學習。

As it relates to some of the raw materials, I think one of the great things about our model is even in the face of increased metal costs, for example, we've still been able to maintain those high margins. And I think the fact that we're inventory light just allows us not to invest capital at higher costs. We're able to be really nimble. So I think we have a real advantage in the marketplace overall.

由於它與某些原材料有關，我認為我們模型的一大優點是，即使面對金屬成本的增加，我們仍然能夠保持高利潤。我認為，我們的庫存較少，這一事實讓我們不必以更高的成本投資資本。我們能夠變得非常靈活。所以我認為我們在整個市場上擁有真正的優勢。

As it relates from 2024 versus 2023, I think that a lot of the strategy remains the same in terms of investing in brands, investing in fine jewelry. We see a big opportunity with showrooms.

從 2024 年到 2023 年，我認為在投資品牌、投資高級珠寶方面，許多策略保持不變。我們看到了陳列室的巨大機會。

But we really want to make sure that we're driving optimization, productivity, and just the best customer experience that we can in the current fleet as we're still being more selective in how we're opening. And then overall, we do expect that more gradual normalization with engagement rings while we continue to experience really strong growth across our non-engagement ring selection.

但我們確實希望確保在當前機隊中推動優化、生產力和最佳客戶體驗，因為我們在開業方式上仍然更具選擇性。總的來說，我們確實預計訂婚戒指會更加逐步正常化，同時我們的非訂婚戒指選擇將繼續經歷真正強勁的增長。

Got it. Thank you.

知道了。謝謝。

Thank you. This does conclude the Q&A session for today. I would like to turn the call back over to Beth Gerstein for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束。我想將電話轉回給貝絲‧格斯坦 (Beth Gerstein)，讓其致閉幕詞。請繼續。

Well, thank you, everyone, for joining us for our Q4 2023 earnings call. I look forward to talking to you next quarter.

好的，謝謝大家參加我們 2023 年第四季財報的電話會議。我期待下個季度與您交談。

This concludes today's conference call. You may all disconnect.

今天的電話會議到此結束。你們都可以斷開連線。