Capri Holdings Ltd (CPRI) 2023 Q3 法說會逐字稿

Greetings. Welcome to Capri Holdings Limited Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this conference is being recorded. At this time, I'll now turn the conference over to Jennifer Davis, Vice President of Investor Relations. Ms. Davis, you may now begin.

問候。歡迎來到 Capri Holdings Limited 2023 年第三季度收益電話會議。 （操作員說明）請注意，正在錄製此會議。現在，我將把會議轉交給投資者關係副總裁 Jennifer Davis。戴維斯女士，您現在可以開始了。

Good morning, everyone, and thank you for joining us on Capri Holdings Limited Third Quarter Fiscal '23 Conference Call. With me this morning are Chairman and Chief Executive Officer, John Idol; and Chief Financial and Chief Operating Officer, Tom Edwards.

大家早上好，感謝您參加 Capri Holdings Limited 第三季度 23 財年電話會議。今天早上和我在一起的是董事長兼首席執行官 John Idol；首席財務官兼首席運營官 Tom Edwards。

Before we begin, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those we expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that these statements made during this call will remain operative at a later time, and the company undertakes no obligation to update any information discussed on the call.

在我們開始之前，讓我提醒您，在今天的電話會議上做出的某些陳述可能構成前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果與我們預期的結果不同。這些風險和不確定性在今天的新聞稿和公司向美國證券交易委員會提交的文件中有所描述，這些文件可在公司網站上查閱。投資者不應假設在本次電話會議中做出的這些聲明將在以後繼續有效，公司不承擔更新電話會議中討論的任何信息的義務。

Unless otherwise noted, all financial information on today's call will be presented on a non-GAAP basis. These non-GAAP measures exclude certain costs associated with COVID-19-related charges, the impact of the war in Ukraine, ERP implementation costs, Capri transformation costs, impairment charges, restructuring and other charges. To view the corresponding GAAP measures and related reconciliation, please view the earnings release posted to our website earlier today at capriholdings.com.

除非另有說明，否則今天電話會議的所有財務信息都將以非公認會計原則為基礎呈現。這些非 GAAP 措施不包括與 COVID-19 相關費用、烏克蘭戰爭的影響、ERP 實施成本、Capri 轉型成本、減值費用、重組和其他費用相關的某些成本。要查看相應的 GAAP 措施和相關調節，請查看今天早些時候發佈在我們網站 capriholdings.com 上的收益發布。

Now I would like to turn the call over to Mr. John Idol, Chairman and Chief Executive Officer. John?

現在，我想將電話轉給董事長兼首席執行官 John Idol 先生。約翰？

Thank you, Jennifer, and good morning, everyone. Overall, our performance in the third quarter was more challenging than we anticipated. However, many aspects of our business performed well. In particular, we were pleased with the continued growth in our own retail channel across all 3 of our luxury houses.

謝謝你，詹妮弗，大家早上好。總體而言，我們在第三季度的表現比我們預期的更具挑戰性。然而，我們業務的許多方面都表現良好。特別是，我們對我們所有 3 個奢侈品牌的零售渠道持續增長感到高興。

This is a testament to the strength of our powerful iconic brands: Versace, Jimmy Choo and Michael Kors, as well as the success of our strategic initiatives. However, we were disappointed with the performance of our global wholesale revenue in the quarter. Additionally, revenue in Mainland China declined significantly due to the surge in COVID cases as the country reopened.

這證明了我們強大的標誌性品牌的實力：Versace、Jimmy Choo 和 Michael Kors，以及我們戰略舉措的成功。然而，我們對本季度全球批發收入的表現感到失望。此外，由於中國重新開放後 COVID 病例激增，中國大陸的收入大幅下降。

Now turning to third quarter performance in more detail. Revenue decreased 6% on a reported basis and 1% in constant currency. Total company retail sales increased mid-single digits globally in constant currency.

現在更詳細地轉向第三季度的表現。收入按報告基礎下降 6%，按固定匯率計算下降 1%。按固定匯率計算，全球公司零售總額增長了中個位數。

New customer acquisition was a key driver of growth as we added more than 12 million new names to our database versus the prior year. This is the largest year-over-year increase in our history. The growth in our own retail channel as well as our large and growing customer database demonstrates the strength and desirability of our brands. However, sales in our wholesale channel declined approximately 20%, driven largely by Michael Kors.

與上一年相比，我們在數據庫中添加了超過 1200 萬個新名稱，因此新客戶的獲取是增長的主要驅動力。這是我們歷史上最大的同比增幅。我們自己的零售渠道的增長以及我們龐大且不斷增長的客戶數據庫證明了我們品牌的實力和吸引力。然而，我們批發渠道的銷售額下降了約 20%，這主要是受 Michael Kors 的推動。

Operating margin of 16.9% was below prior year. This reflected the sales mix shift between retail and wholesale as well as increased marketing expense to support growth and build longer-term brand equity. As a result, earnings per share of $1.84 were below our expectations.

營業利潤率為 16.9%，低於上年。這反映了零售和批發之間的銷售組合轉變以及營銷費用的增加以支持增長和建立長期品牌資產。因此，每股收益為 1.84 美元，低於我們的預期。

Now looking at third quarter group revenue trends by geography. In the Americas, revenue decreased 4% with mid-single-digit growth in retail offset by significant declines in our wholesale channel. In EMEA, revenue decreased 2% on a reported basis but increased 9% in constant currency. This was driven by strong retail revenue, partially offset by weaker trends in wholesale. In Asia, revenue decreased 20% on a reported basis and 8% in constant currency. This reflects strong results in Japan and Southeast Asia offset by a nearly 40% decline in Mainland China.

現在按地域查看第三季度集團收入趨勢。在美洲，收入下降了 4%，零售業的中等個位數增長被批發渠道的大幅下滑所抵消。在歐洲、中東和非洲地區，收入按報告基礎下降 2%，但按固定匯率計算增長 9%。這是由強勁的零售收入推動的，部分被批發的疲軟趨勢所抵消。在亞洲，收入按報告基礎下降 20%，按固定匯率計算下降 8%。這反映了日本和東南亞的強勁業績被中國大陸近 40% 的下滑所抵消。

Moving to third quarter revenue trends by brand. Starting with Versace. Revenue decreased 1% on a reported basis but increased 11% in constant currency compared to prior year. Excluding Mainland China, revenue increased 21% in constant currency. We were pleased that revenue was better than anticipated and operating margin was in line with our expectations.

按品牌轉移到第三季度的收入趨勢。從范思哲開始。收入按報告基礎下降 1%，但與上一年相比按固定匯率計算增長 11%。不包括中國大陸在內，收入按固定匯率計算增長了 21%。我們很高興收入好於預期，營業利潤率符合我們的預期。

Turning to product. Starting with accessories, which are a key component of our growth strategy, Women's accessories was the strongest performing category with sales in our retail channel up over 40% versus prior year. We were pleased with the response to our Greca Goddess pillar, which is continuing to gain traction. With our 3 pillars, La Medusa, Virtus and Greca Goddess, we are making significant progress in our goal to position Versace as a leading luxury leather house.

轉向產品。從配飾開始，這是我們增長戰略的一個重要組成部分，女士配飾是表現最強勁的類別，我們零售渠道的銷售額比上一年增長了 40% 以上。我們對 Greca Goddess 支柱的反應感到滿意，該支柱正在繼續獲得關注。憑藉我們的三大支柱，La Medusa、Virtus 和 Greca Goddess，我們正在朝著將 Versace 定位為領先的奢華皮具品牌的目標取得重大進展。

Another component of our growth strategy is to expand footwear. Versace continued to gain authority as a women's luxury footwear brand as we expanded our core offerings with the introduction of the Pin-Point collection, a new range of statement pumps characterized by a curved metal stiletto heel. Men's and women's sneakers also performed well, driven by our Trigreca, Greca and Odissea styles.

我們增長戰略的另一個組成部分是擴大鞋類業務。隨著我們通過推出 Pin-Point 系列擴展我們的核心產品，Versace 繼續獲得作為女性奢華鞋履品牌的權威，這是一個以弧形金屬細高跟為特色的全新個性高跟鞋系列。在我們的 Trigreca、Greca 和 Odissea 款式的推動下，男士和女士運動鞋也表現出色。

Moving to brand awareness and consumer engagement. Versace continued to deepen consumer desire through powerful storytelling. The holiday campaign was inspired by Versace's deep roots within the worlds of theater and the arts. Model Lily McMenamy embodied high Versace drama while highlighting holiday gift offerings.

轉向品牌知名度和消費者參與度。范思哲繼續通過強大的故事講述來加深消費者的慾望。假日廣告的靈感來自范思哲在戲劇和藝術領域的深厚根基。模特 Lily McMenamy 體現了 Versace 的高度戲劇性，同時突出了節日禮物。

Our marketing initiatives continue to focus on Versace's Italian luxury heritage. This helped contribute to an over 40% increase year-over-year in Versace's global consumer database. Overall, we were pleased with the performance of Versace as we continued to execute our strategic initiatives. Looking forward, we remain confident in the luxury house's long-term growth potential as we reinforce Versace brand codes, significantly grow accessories and footwear as well as renovate our store fleet.

我們的營銷活動繼續關注范思哲的意大利奢侈品傳統。這有助於范思哲全球消費者數據庫同比增長 40% 以上。總的來說，我們對范思哲的表現感到滿意，因為我們繼續執行我們的戰略計劃。展望未來，我們對這家奢侈品牌的長期增長潛力充滿信心，因為我們強化了 Versace 品牌代碼，顯著增加了配飾和鞋類產品，並翻新了我們的門店。

Moving to Jimmy Choo. Revenue decreased 6% on a reported basis but increased 3% in constant currency compared to prior year. Excluding Mainland China, revenue increased 10% in constant currency. While revenue was below our expectations, primarily impacted by China, operating margin was better than anticipated.

搬到 Jimmy Choo。收入按報告基礎下降 6%，但與上一年相比按固定匯率計算增長 3%。不包括中國大陸在內，收入按固定匯率計算增長了 10%。雖然主要受中國影響，收入低於我們的預期，但營業利潤率好於預期。

Turning to product. Starting with accessories, which are a key component of our Go Strategy. Women's Accessories was the strongest performing category, with sales in our retail channel up high single digits versus prior year. Seasonal updates to our iconic Bon Bon and VARENNE styles performed exceptionally well. Women's footwear sales grew, driven by dress footwear styles as people engaged in social activities, enjoyed special occasions and celebrated the holidays. Sneakers also performed well with positive consumer reaction to our new Diamond Maxi.

轉向產品。從配件開始，這是我們 Go Strategy 的關鍵組成部分。女士配飾是表現最強勁的類別，我們零售渠道的銷售額與上一年相比增長了高個位數。我們標誌性的 Bon Bon 和 VARENNE 款式的季節性更新表現異常出色。隨著人們參加社交活動、享受特殊場合和慶祝節日，女鞋銷量在正裝鞋款的推動下增長。運動鞋也表現出色，消費者對我們的新款 Diamond Maxi 反應積極。

During the third quarter, Jimmy Choo launched its successful capsule collaboration with Timberland. Sandra Choi partnered with New York-native designer Shanel Campbell of Harlem's Fashion Row, to reimagine Timberland's iconic yellow boot. The collection celebrated urban glamor and the eclectisism of New York's dynamic community. This exciting collaboration generated over 50 million impressions across social media as well as strong product sell-throughs.

在第三季度，Jimmy Choo 與 Timberland 推出了成功的膠囊合作系列。 Sandra Choi 與哈萊姆時尚街的紐約本土設計師 Shanel Campbell 合作，重新設計了 Timberland 標誌性的黃色靴子。該系列頌揚了紐約充滿活力的社區的都市魅力和折衷主義。這一激動人心的合作在社交媒體上產生了超過 5000 萬次展示，並帶來了強勁的產品銷量。

Now turning to brand awareness and consumer engagement. For holiday, our campaign celebrated the playful energy of the party season in London's Claridge's hotel, where Jimmy Choo designed the 2022 Christmas Tree. The unveiling of the Jimmy Choo Tree was attended by celebrities and friends of the house, including Iris law, Sienna Miller and Daisy Lowe. Posts by attendees generated approximately 7 million impressions across social media.

現在轉向品牌知名度和消費者參與度。假日期間，我們的活動在倫敦克拉里奇酒店慶祝派對季的歡樂活力，Jimmy Choo 在這裡設計了 2022 聖誕樹。名人和品牌好友出席了 Jimmy Choo Tree 的揭幕儀式，包括 Iris law、Sienna Miller 和 Daisy Lowe。與會者的帖子在社交媒體上產生了大約 700 萬次展示。

Our marketing initiatives continue to underpin our focus on glamor. This helped contribute to a 20% year-over-year increase in Jimmy Choo's global consumer database. Overall, we were pleased with the progress at Jimmy Choo as we continued to execute on our strategic initiatives. Looking forward, we remain confident in the luxury house's long-term growth potential as we reinforce Jimmy Choo's brand codes, significantly grow accessories and expand our casual footwear offering.

我們的營銷舉措繼續鞏固我們對魅力的關注。這有助於 Jimmy Choo 的全球消費者數據庫同比增長 20%。總的來說，我們對 Jimmy Choo 的進展感到滿意，因為我們繼續執行我們的戰略舉措。展望未來，我們對這家奢侈品牌的長期增長潛力充滿信心，因為我們強化了 Jimmy Choo 的品牌代碼，顯著增加了配飾並擴大了我們的休閒鞋類產品。

Now turning to Michael Kors. Revenue decreased 7% on a reported basis and 4% in constant currency compared to prior year. We were pleased with the continued growth in our own retail channel with constant-currency sales up low single digits despite greater declines in Mainland China. However, we were disappointed with Michael Kors' wholesale, which declined approximately 25% during the quarter. Operating margin was below prior year due to the sales mix shift between retail and wholesale as well as increased marketing expenses in our retail channel.

現在轉向 Michael Kors。與上一年相比，報告收入下降 7%，按固定匯率計算收入下降 4%。我們很高興我們自己的零售渠道持續增長，儘管中國大陸的銷售額下降幅度更大，但固定貨幣銷售額仍保持低個位數。然而，我們對 Michael Kors 的批發業務感到失望，該季度的批發業務下降了約 25%。由於零售和批發之間的銷售組合轉變以及我們零售渠道的營銷費用增加，營業利潤率低於上一年。

To provide some additional color around wholesale, revenue at POS declined in the mid-teens as sales lagged trends in our own retail channel. We had anticipated a sequential improvement at POS during the holiday shopping season, but that did not materialize. Therefore, we shipped less into the channel as we did not want to end up with excess inventory, which would result in additional markdowns.

為了給批發提供一些額外的色彩，POS 的收入在十幾歲中期下降，因為我們自己的零售渠道的銷售落後於趨勢。我們曾預計在假日購物季 POS 會有所改善，但這並沒有實現。因此，我們減少了向渠道的發貨，因為我們不想最終導致庫存過剩，這會導致額外的降價。

As you know, we have been elevating the Michael Kors brand and product. We believe our elevation strategy is working well, particularly in our own retail channel. We continue to believe that elevating Michael Kors is the right strategy for the brand.

如您所知，我們一直在提升 Michael Kors 的品牌和產品。我們相信我們的提升策略運作良好，尤其是在我們自己的零售渠道中。我們仍然相信提升 Michael Kors 品牌是該品牌的正確策略。

Now turning to product. In accessories, sales in our own retail channel increased low single digits globally. Consumers responded positively to core iconic collections, featuring Michael Kors Signature and hardware. We drove newness and excitement in Signature with seasonal updates featuring metallic logo prints. As a result, Signature represented approximately 55% of accessories sales during the quarter.

現在轉向產品。在配飾方面，我們自有零售渠道的銷售額在全球範圍內以低個位數增長。消費者對以 Michael Kors 簽名和硬件為特色的核心標誌性系列反響積極。我們通過帶有金屬徽標印花的季節性更新來推動 Signature 的新鮮感和興奮感。因此，Signature 約佔本季度配件銷售額的 55%。

Looking at footwear. We continue to believe we can significantly expand Michael Kors footwear to drive incremental revenue. Footwear sales in our retail channel increased low double digits as we delivered exciting fashion featuring iconic hardware branding elements and signature detailing.

看著鞋類。我們仍然相信我們可以顯著擴大 Michael Kors 鞋類業務以增加收入。我們零售渠道的鞋類銷售額增長了兩位數，因為我們推出了具有標誌性硬件品牌元素和標誌性細節的令人興奮的時裝。

Men's remains one of the strongest performing categories in retail, and we remain enthusiastic about our opportunity to expand the accessories collection. Men's third quarter retail sales increased strong double digits globally, led by Signature product.

男裝仍然是零售業表現最強勁的品類之一，我們仍然熱衷於擴大配飾系列。在 Signature 產品的帶動下，全球第三季度男裝零售額實現了兩位數的強勁增長。

In December, Michael Kors collaborated with Italian luxury sportswear brand Ellesse for a second time to create a sporty and glamorous ski Capsule Collection. The collaboration created energy and excitement, generating approximately 140 million impressions on social media as well as solid sell-throughs.

去年 12 月，Michael Kors 與意大利奢侈運動服飾品牌 Ellesse 第二次合作，打造運動風十足的滑雪膠囊系列。此次合作創造了活力和興奮，在社交媒體上產生了大約 1.4 億次展示以及穩固的銷量。

Now turning to brand awareness and consumer engagement. For holiday, our consumer communication embodied Michael Kors Signature glamor and optimism, infused with the joy of the season. Bella Hadid captured the jet-set chic glamor of Michael's designs for the season's festivities. Additionally, in Asia, we amplified the campaign with renowned Chinese model, He Cong.

現在轉向品牌知名度和消費者參與度。對於假期，我們的消費者溝通體現了 Michael Kors 標誌性的魅力和樂觀，並註入了季節的歡樂。貝拉·哈迪德 (Bella Hadid) 捕捉到了邁克爾為本季慶典設計的奢華時尚魅力。此外，在亞洲，我們與中國著名模特何聰一起擴大了宣傳活動。

Our marketing initiatives continued to underpin our jet-set storytelling. This helped contribute to a 17% year-over-year increase in Michael Kors global consumer database, demonstrating the strength and desirability of the brand.

我們的營銷舉措繼續鞏固我們的噴氣式飛機故事。這有助於 Michael Kors 全球消費者數據庫同比增長 17%，展示了該品牌的實力和吸引力。

Overall, we were disappointed with the performance of Michael Kors in the third quarter. Given lower wholesale revenue, we recognize the need to reset our operating expense structure. We are beginning to take measures to better align operating expenses with the change in revenue by channel.

總體而言，我們對 Michael Kors 第三季度的表現感到失望。鑑於較低的批發收入，我們認識到有必要重新設置我們的運營費用結構。我們開始採取措施，使運營費用與渠道收入的變化更好地保持一致。

Looking forward, we remain focused on our long-term growth initiatives to elevate the Michael Kors brand and reinforce our jet-set codes. We anticipate future growth, driven by our own retail channel, where we can leverage our brand momentum and personalized connections with consumers to drive revenue growth.

展望未來，我們將繼續專注於我們的長期增長計劃，以提升 Michael Kors 品牌並加強我們的噴氣機代碼。我們預計未來的增長將由我們自己的零售渠道推動，我們可以利用我們的品牌勢頭和與消費者的個性化聯繫來推動收入增長。

Now looking ahead to the fourth quarter for Capri Holdings. We expect continued momentum in our own retail channel, driven by each of our brands' strategic initiatives. However, in the wholesale channel, we now anticipate an even greater sequential decline relative to the third quarter. Due to weakness in our wholesale POS performance during the third quarter, which has continued into the fourth quarter, we are further reducing shipments into this channel.

現在展望 Capri Holdings 的第四季度。在我們每個品牌的戰略舉措的推動下，我們預計我們自己的零售渠道將繼續保持增長勢頭。然而，在批發渠道，我們現在預計與第三季度相比，環比下降幅度更大。由於我們第三季度的批發 POS 業績疲軟，這種情況一直持續到第四季度，我們正在進一步減少對該渠道的出貨量。

Now turning to fiscal '24 for Capri Holdings. We anticipate total revenue and earnings growth in the mid-single digits. In our own retail channel, we anticipate solid growth driven by our strategic initiatives, client-telling and personalized strategies as well as a recovery in China as the country reopens. In the wholesale channel, we expect revenue to decline in the mid-teens with trends normalizing in the back half of the fiscal year. Looking forward, we remain focused on executing our strategic initiatives to drive sustainable future growth.

現在轉向 Capri Holdings 的 24 財年。我們預計總收入和盈利將以中個位數增長。在我們自己的零售渠道中，我們預計將在我們的戰略舉措、客戶告知和個性化戰略以及中國重新開放後的複甦的推動下實現穩健增長。在批發渠道，我們預計收入將在中期下降，趨勢在本財年下半年恢復正常。展望未來，我們將繼續專注於執行我們的戰略舉措，以推動可持續的未來增長。

Our 3 powerful, iconic brands have enduring value and strong brand equity. We remain confident in our ability to achieve our long-term revenue and operating margin targets over time due to the resilience of the luxury industry, the strength of our portfolio and the talented group of employees executing our strategic initiatives.

我們的 3 個強大的標誌性品牌具有持久的價值和強大的品牌資產。由於奢侈品行業的彈性、我們產品組合的實力以及執行我們戰略計劃的優秀員工團隊，我們對隨著時間的推移實現長期收入和營業利潤率目標的能力充滿信心。

Before turning the call over to Tom, I would like to welcome Cedric Wilmotte as our new Chief Executive Officer of Michael Kors. Cedric has proven himself to be a versatile leader within our luxury fashion group. As President of Michael Kors EMEA for over 13 years as well as the interim CEO of Versace for the last year and the COO of Versace currently, the Board, Michael and I are confident that Cedric's leadership will help to further accelerate Michael Kors strategic initiatives and brand momentum.

在將電話轉給 Tom 之前，我想歡迎 Cedric Wilmotte 成為我們 Michael Kors 的新任首席執行官。 Cedric 已證明自己是我們奢侈時尚集團中多才多藝的領導者。作為 Michael Kors 歐洲、中東和非洲地區總裁超過 13 年，去年擔任 Versace 臨時首席執行官，現任 Versace 首席運營官，董事會、Michael 和我相信 Cedric 的領導將有助於進一步加速 Michael Kors 的戰略計劃和品牌勢頭。

Importantly, Cedric's appointment ensures that we have 3 experienced and talented CEOs at each of our luxury fashion houses. I am confident that we now have the right management team in place to execute our long-term strategic initiatives.

重要的是，Cedric 的任命確保了我們的每家奢侈時裝公司都擁有 3 位經驗豐富且才華橫溢的 CEO。我相信我們現在擁有合適的管理團隊來執行我們的長期戰略計劃。

Now let me turn the call over to Tom.

現在讓我把電話轉給湯姆。

Thank you, John, and good morning, everyone. Overall, we were disappointed in our performance in the third quarter. While we were pleased with the continued growth in our own retail channel across all 3 of our luxury houses, revenue in our wholesale channel declined significantly, which resulted in expense deleverage and a lower operating margin.

謝謝約翰，大家早上好。總體而言，我們對第三季度的表現感到失望。雖然我們對我們所有 3 個奢侈品牌的零售渠道持續增長感到滿意，但我們批發渠道的收入大幅下降，這導致費用去槓桿化和較低的營業利潤率。

Now turning to third quarter revenue in more detail. Total company revenue of $1.5 billion decreased 6% versus prior year and 1% in constant currency, which was below our expectations.

現在更詳細地轉向第三季度收入。公司總收入為 15 億美元，較上年下降 6%，按固定匯率計算下降 1%，低於我們的預期。

Looking at revenue performance by brand. At Versace, revenue decreased 1% on a reported basis but increased 11% in constant currency compared to prior year. Global retail sales increased in the mid-single digits in constant currency. By geography, total revenue in the Americas decreased 4%. Revenue in EMEA increased 14% on a reported basis and 28% in constant currency. Revenue in Asia decreased 19% on a reported basis and 11% in constant currency driven by greater declines in Mainland China.

按品牌查看收入表現。范思哲的收入按報告基礎下降 1%，但按固定匯率計算與上一年相比增長 11%。按固定匯率計算，全球零售額以中個位數增長。按地域劃分，美洲的總收入下降了 4%。歐洲、中東和非洲地區的收入按報告基礎增長 14%，按固定匯率計算增長 28%。亞洲收入按報告基礎下降 19%，按固定匯率計算下降 11%，原因是中國大陸收入下降幅度更大。

For Jimmy Choo, revenue decreased 6% on a reported basis but increased 3% in constant currency compared to prior year. Global retail sales increased low single digits in constant currency.

對於 Jimmy Choo，與上一年相比，收入按報告基礎下降 6%，但按固定匯率計算增長 3%。按固定匯率計算，全球零售額增長低個位數。

By geography, total revenue in the Americas increased 6%. Revenue in EMEA increased 1% on a reported basis and 14% in constant currency. Revenue in Asia decreased 24% on a reported basis and 13% in constant currency driven by greater declines in Mainland China.

按地域劃分，美洲的總收入增長了 6%。歐洲、中東和非洲地區的收入按報告基礎增長 1%，按固定匯率計算增長 14%。亞洲收入按報告基準下降 24%，按固定匯率計算下降 13%，原因是中國大陸收入下降幅度更大。

At Michael Kors, revenue decreased 7% on a reported basis and 4% in constant currency compared to the prior year, impacted by the decline in wholesale. Looking at Michael Kors revenue by channel, global retail sales increased low single digits in constant currency. This was driven primarily by a double-digit increase in e-commerce sales with e-commerce penetration increasing 300 basis points versus prior year. However, wholesale revenue declined approximately 25% compared to prior year.

受批發業務下滑的影響，Michael Kors 的收入與上年相比報告下降 7%，按固定匯率計算下降 4%。按渠道查看 Michael Kors 收入，按固定匯率計算，全球零售額增長了低個位數。這主要是由於電子商務銷售額實現兩位數增長，電子商務滲透率比上一年增加了 300 個基點。然而，批發收入與去年相比下降了約 25%。

Turning to Michael Kors revenue by geography. Sales in the Americas decreased 5% driven by the decline in wholesale. Revenue in EMEA decreased 11% on a reported basis and 1% in constant currency, also driven by a decline in wholesale. Revenue in Asia decreased 18% on a reported basis and 5% in constant currency driven by greater declines in Mainland China.

轉向 Michael Kors 按地域劃分的收入。由於批發量下降，美洲銷售額下降了 5%。歐洲、中東和非洲地區的收入在報告基礎上下降了 11%，按固定匯率計算下降了 1%，這也是受到批發業務下降的推動。亞洲收入按報告基礎下降 18%，按固定匯率計算下降 5%，原因是中國大陸收入下降幅度更大。

Now looking at total company margin performance. Gross margin expanded 120 basis points to 66.3% driven by moderating inbound transportation costs, price increases and channel mix. Operating expense as a percent of revenue was 49.4% compared to 42.8% last year, reflecting several factors primarily driven by the Michael Kors brand.

現在看看公司的總體利潤率表現。毛利率擴大 120 個基點，達到 66.3%，這主要歸功於入境運輸成本下降、價格上漲和渠道組合。營業費用佔收入的百分比為 49.4%，而去年為 42.8%，反映了主要由 Michael Kors 品牌推動的幾個因素。

First, the significant decline in wholesale revenue resulted in deleverage as the wholesale channel has a low variable cost structure. Second, as planned, we increased our marketing investments to support brand-building activities across the group. And third, e-commerce sales increased double digits, which resulted in higher variable costs.

首先，由於批發渠道的可變成本結構較低，批發收入大幅下降導致去槓桿化。其次，我們按計劃增加了營銷投資，以支持整個集團的品牌建設活動。第三，電子商務銷售額增長了兩位數，導致可變成本增加。

Due to the operating expense deleverage, total company operating margin declined to 16.9% compared to 22.3% last year and was below our expectations. At Versace, operating margin of 9.6% was in line with our expectations and compared to 12.7% last year. At Jimmy Choo, operating margin of 10.7% was ahead of our expectations and compared to 9% last year. And the Michael Kors operating margin of 22.9% was below our expectations and compared to 28.4% last year. Our tax rate for the quarter was 3% compared to last year's rate of 8.1% primarily due to the release of a valuation allowance on U.K. deferred tax assets.

由於運營費用去槓桿化，公司總運營利潤率從去年的 22.3% 下降至 16.9%，低於我們的預期。范思哲的營業利潤率為 9.6%，符合我們的預期，而去年為 12.7%。 Jimmy Choo 的營業利潤率為 10.7%，高於我們的預期，而去年為 9%。 Michael Kors 的營業利潤率為 22.9%，低於我們的預期，而去年為 28.4%。我們本季度的稅率為 3%，而去年的稅率為 8.1%，這主要是由於釋放了英國遞延稅資產的估值津貼。

Now turning to our balance sheet. We ended the quarter with cash of $281 million and debt of $1.54 billion, resulting in net debt of $1.26 billion. As part of our ongoing commitment to return cash to shareholders, we repurchased approximately $300 million worth of shares in the third quarter.

現在轉向我們的資產負債表。本季度結束時，我們的現金為 2.81 億美元，債務為 15.4 億美元，淨債務為 12.6 億美元。作為我們向股東返還現金的持續承諾的一部分，我們在第三季度回購了價值約 3 億美元的股票。

Looking at inventory. We ended the quarter with $1.19 billion, a 21% increase over last year. This represents a sequential deceleration compared to the prior quarter. We continue to expect inventory levels at the end of the fourth quarter to be below prior year.

看著庫存。本季度末，我們的收入為 11.9 億美元，比去年增長 21%。與上一季度相比，這表示連續減速。我們繼續預計第四季度末的庫存水平將低於去年同期。

Now turning to guidance. Looking at the fourth quarter, we are more cautious in our revenue outlook in the face of an increasingly uncertain macroeconomic environment. We now anticipate total company revenue of approximately $1.275 billion. This represents a decline of 15% on a reported basis, reflecting a mid-single-digit decline in retail.

現在轉向指導。展望第四季度，面對越來越不確定的宏觀經濟環境，我們對收入前景更加謹慎。我們現在預計公司總收入約為 12.75 億美元。這表示在報告的基礎上下降了 15%，反映了零售業的中等個位數下降。

For wholesale, we had planned the channel down, but we are now planning it down further and forecast an approximate 35% decline. On a 52-week constant-currency basis, total company revenue would be down 8%, including an increase in retail revenue in the mid-single digits.

對於批發，我們曾計劃下調渠道，但我們現在計劃進一步下調，預計下降約 35%。按 52 週固定匯率計算，公司總收入將下降 8%，其中零售收入將以中個位數增長。

For fourth quarter revenue by brand, we forecast Versace revenue of approximately $280 million. This represents a decline of 11% on a reported basis with a low single-digit decline in retail and an approximate 30% decline in wholesale. On a constant-currency basis, Versace revenue would be down 7%, including a low single-digit increase in retail revenue. As a reminder, Versace reports on a 1-month lag, therefore, the significant decline in Mainland China in December will be included in the fourth quarter results.

對於按品牌劃分的第四季度收入，我們預測范思哲收入約為 2.8 億美元。這表示在報告的基礎上下降了 11%，其中零售下降了較低的個位數，批發下降了約 30%。按固定匯率計算，范思哲的收入將下降 7%，其中包括零售收入的低個位數增長。提醒一下，范思哲的報告有1個月的滯後，因此，中國大陸12月份的大幅下滑將被計入第四季度業績。

For Jimmy Choo, we forecast revenue of approximately $130 million. This represents a decline of 16% on a reported basis with a low double-digit decline in retail and an approximate 40% decline in wholesale. On a 52-week constant-currency basis, Jimmy Choo revenue would be down 7%, including a low single-digit increase in retail revenue.

對於 Jimmy Choo，我們預測收入約為 1.3 億美元。這表示在報告的基礎上下降了 16%，零售下降了兩位數，批發下降了約 40%。在 52 週固定匯率的基礎上，Jimmy Choo 的收入將下降 7%，其中包括零售收入的低個位數增長。

For Michael Kors, we forecast revenue of approximately $865 million. This represents a decline of 15% on a reported basis with a mid-single-digit decline in retail and an approximate 35% decline in wholesale. On a 52-week constant-currency basis, Michael Kors revenue would be down 5%, including a mid-single-digit increase in retail revenue.

對於 Michael Kors，我們預測收入約為 8.65 億美元。這表示在報告的基礎上下降了 15%，其中零售下降了中個位數，批發下降了約 35%。按 52 週固定匯率計算，Michael Kors 收入將下降 5%，其中零售收入將實現中等個位數增長。

Now looking at operating margins. We anticipate fourth quarter operating margin of approximately 8.5%. This reflects continued gross margin expansion offset by operating expense deleverage primarily due to the sales mix shift between retail and wholesale. We expect this across all 3 brands.

現在看營業利潤率。我們預計第四季度營業利潤率約為 8.5%。這反映了毛利率的持續增長被主要由於零售和批發之間的銷售組合轉變而導致的營業費用去槓桿化所抵消。我們預計所有 3 個品牌都會出現這種情況。

For Versace, we now anticipate an operating margin of approximately 10%. For Jimmy Choo, we now expect an operating margin in the negative mid-teens. And for Michael Kors, we now anticipate an operating margin in the mid-teens.

對於范思哲，我們現在預計營業利潤率約為 10%。對於 Jimmy Choo，我們現在預計營業利潤率為負的 15% 左右。對於 Michael Kors，我們現在預計營業利潤率在十幾歲左右。

Turning to our expectations around certain nonoperating items. We forecast net interest expense of approximately $11 million. We expect an income tax benefit with a rate of approximately negative 20%driven primarily by the resolution of an uncertain foreign tax position as well as anticipated mix of earnings in lower tax jurisdictions.

轉向我們對某些非經營項目的期望。我們預測淨利息支出約為 1100 萬美元。我們預計所得稅收益約為負 20%，這主要是由於解決了不確定的外國稅收狀況以及較低稅收管轄區的預期收益組合。

We expect weighted average shares outstanding of approximately 126 million. As a result, we now anticipate diluted earnings per share of approximately $0.90 to $0.95.

我們預計加權平均流通股數約為 1.26 億股。因此，我們現在預計每股攤薄收益約為 0.90 美元至 0.95 美元。

Now I would like to take a moment to share high-level thoughts around our preliminary expectations for fiscal '24. We're providing this outlook given the material change in wholesale trends.

現在我想花點時間談談我們對 24 財年的初步預期的高層想法。鑑於批發趨勢的重大變化，我們提供了這一前景。

We currently expect fiscal '24 revenue of approximately $5.8 billion, a 4% increase versus fiscal '23, driven by continued growth in our own retail channels across all brands. We anticipate retail revenue will increase in the low double digits primarily driven by growth in Asia as China reopens. Excluding Asia, we expect retail revenue to increase in the mid-single-digit range driven by our strategic initiatives.

我們目前預計 24 財年收入約為 58 億美元，比 23 財年增長 4%，這主要得益於我們所有品牌的零售渠道持續增長。隨著中國重新開放，我們預計零售收入將以較低的兩位數增長，這主要是受亞洲增長的推動。除亞洲外，我們預計零售收入將在我們的戰略舉措的推動下實現中等個位數增長。

In the wholesale channel, we expect revenue to decline in the mid-teens range. Together with our partners across all 3 of our brands, we're taking a more cautious approach to planning the business due to the uncertain macroeconomic environment. We now anticipate wholesale penetration will decline from 27% of revenue in fiscal '23 to approximately 23% of revenue in fiscal '24.

在批發渠道，我們預計收入將下降至十幾歲左右。由於不確定的宏觀經濟環境，我們與我們所有 3 個品牌的合作夥伴一起採取更加謹慎的方法來規劃業務。我們現在預計批發滲透率將從 23 財年收入的 27% 下降到 24 財年收入的約 23%。

Now looking at our operating expenses. Because of the anticipated decline in wholesale revenue, we recognize the need to reset our expense structure. We plan to proactively manage expenses while also continuing to make strategic investments, particularly in marketing, to drive long-term growth.

現在看看我們的運營費用。由於預期批發收入下降，我們認識到有必要重新調整我們的費用結構。我們計劃積極管理開支，同時繼續進行戰略投資，特別是在營銷方面，以推動長期增長。

Looking at fiscal '24 operating margin. We expect modest expansion to 16.5%, reflecting gross margin expansion partially offset by expense deleverage. We expect an effective tax rate in the mid-teens as well as higher interest expense, largely offset by lower share count. As a result, we anticipate EPS of approximately $6.40.

看看 24 財年的營業利潤率。我們預計溫和擴張至 16.5%，反映出毛利率擴張部分被費用去槓桿化所抵消。我們預計有效稅率將達到 15% 左右，利息支出也會增加，這在很大程度上被較低的股票數量所抵消。因此，我們預計每股收益約為 6.40 美元。

Now I would like to discuss our expectations regarding the cadence of fiscal '24 revenue and earnings between the first and second half of the year. Looking at revenue. In our own retail channel, we anticipate growth throughout the year. In wholesale, we expect significant declines in the first half with trends normalizing in the back half of the year as we anniversary the declines in fiscal '23. Relative to prior year, this will result in lower margins in the first half of fiscal '24 with margin expansion expected in the back half of the year.

現在我想討論一下我們對今年上半年和下半年 24 財年收入和收益節奏的預期。看著收入。在我們自己的零售渠道中，我們預計全年都會增長。在批發方面，我們預計上半年將出現大幅下滑，隨著我們紀念 23 財年的下滑，下半年趨勢將正常化。與上一年相比，這將導致 24 財年上半年的利潤率下降，預計下半年利潤率將擴大。

Looking at our expectations by brand. For Versace, we anticipate revenue of approximately $1.25 billion and an operating margin in the mid-teens range. For Jimmy Choo, we expect revenue of approximately $650 million and an operating margin in the high single-digit range. And for Michael Kors, we anticipate revenue of approximately $3.9 billion and an operating margin in the low 20% range.

按品牌查看我們的期望。對於范思哲，我們預計收入約為 12.5 億美元，營業利潤率在十幾歲左右。對於 Jimmy Choo，我們預計收入約為 6.5 億美元，營業利潤率處於高個位數範圍內。對於 Michael Kors，我們預計收入約為 39 億美元，營業利潤率在 20% 左右。

In conclusion, while we are disappointed with our third quarter results and our fourth quarter guidance, we remain optimistic about the long-term growth potential for Versace, Jimmy Choo and Michael Kors. Our powerful brands have enduring value and proven resilience, reinforcing our confidence in the ability to deliver strong revenue and earnings growth over time.

總之，雖然我們對第三季度業績和第四季度業績指引感到失望，但我們對范思哲、Jimmy Choo 和 Michael Kors 的長期增長潛力仍然持樂觀態度。我們強大的品牌具有持久的價值和久經考驗的彈性，增強了我們對隨著時間的推移實現強勁收入和盈利增長的能力的信心。

Now we will open up the line for questions.

現在我們將開通提問熱線。

(Operator Instructions) And our first question comes from the line of Matthew Boss with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Matthew Boss。

So John, maybe couple questions. First, larger picture, could you speak to overall category demand for accessories that you're seeing today, maybe relative to preholiday if there's been any change?

約翰，也許有幾個問題。首先，從更大的角度來看，您能否談談您今天看到的配件的整體類別需求，如果有任何變化，可能與節前相比？

And then how best to explain the difference that you're seeing between direct-to-consumer and wholesale as it relates to the overall health of your brand portfolio? And do you believe the reset in revenues for next year appropriately covers you for nearly any scenario from a macro perspective?

那麼如何最好地解釋您所看到的直接面向消費者和批發之間的差異，因為它與您的品牌組合的整體健康狀況有關？您是否認為從宏觀角度來看，明年的收入重置幾乎可以涵蓋幾乎所有情況？

Thank you, Matt. So obviously, we are very disappointed with our third quarter results mainly driven by the wholesale channel. We are pleased, as we said in our prepared remarks, with our own retail channel, which showed strength really across the globe with the exception of China, which had further declines than we had anticipated, and that was due to the reopening. And I think we have said that we had more stores shut down at certain points during the fourth quarter in China than we did during -- at any point during the pandemic. So that was quite difficult. And we have seen an uptick in the business there, especially in January.

謝謝你，馬特。很明顯，我們對主要由批發渠道推動的第三季度業績感到非常失望。正如我們在準備好的發言中所說，我們對自己的零售渠道感到高興，該渠道在全球範圍內都顯示出實力，但中國除外，中國的下滑幅度超出了我們的預期，這是由於重新開放造成的。而且我想我們已經說過，我們在第四季度在中國的某些時間點關閉的商店比我們在大流行期間的任何時候都多。所以那是相當困難的。我們看到那裡的業務有所增長，尤其是在 1 月份。

So we're feeling strong and good about our own retail channel and how we're able to communicate in clientele and work directly with the consumer. And of course, you also saw that in our database growth, where we have the largest growth ever in the company's history. And we've consistently grown the database at all 3 of those luxury brands every single quarter in the double-digit range. And I think that speaks to the strengths of the brands, the way the consumer is reacting to our strategic initiatives, and that's everything from the marketing to the actual product itself. And you saw in all 3 of our categories, we had growth in accessories. And so that really speaks to I think the strength of the category. I think you've also seen from many of the other reports that have happened with other luxury houses in the world, the category is strong.

因此，我們對自己的零售渠道以及我們如何能夠與客戶溝通並直接與消費者合作感到強烈和滿意。當然，您在我們的數據庫增長中也看到了這一點，這是我們公司歷史上最大的增長。而且我們每個季度都在兩位數範圍內持續增加所有 3 個奢侈品牌的數據庫。我認為這說明了品牌的優勢，消費者對我們的戰略舉措的反應方式，以及從營銷到實際產品本身的一切。您在我們的所有 3 個類別中都看到了我們在配件方面的增長。所以這真的說明了我認為這個類別的實力。我想你也從世界上其他豪宅發生的許多其他報告中看到，這個類別很強大。

In terms of what happened in the wholesale category, and I'd say that's more of a North America issue where Europe performed better, although still not up to our anticipation, we have been -- and this is really more of a Michael Kors issue, we've been elevating the brand, both in positioning the way we're marketing it, the way that we have really elevated many of the products in terms of the quality, in terms of the design and in terms of the pricing. Pricing is up, on average, close to 25% since we started our price increases in 2019.

就批發類別發生的事情而言，我想說這更多是北美問題，歐洲表現更好，雖然仍然沒有達到我們的預期，但我們一直 - 這實際上更像是 Michael Kors 問題，我們一直在提升品牌，無論是定位我們營銷它的方式，還是我們在質量、設計和定價方面真正提升許多產品的方式。自我們在 2019 年開始提價以來，價格平均上漲了近 25%。

I do think that the consumer was more cautious during the holiday season. We saw strong performance in our own stores through Black Friday, and then that kind of consisted right afterwards. We did not see the same rate pace and rate at the -- in particular, the North American wholesale channel. They have not -- that channel has not kept up the pace of the growth all throughout the year. We thought that part of that was an inventory issue, where we thought we -- if we could get in a better inventory position, which we did think we were in come the third quarter of the calendar year, as we had shipped, you saw in our first 2 quarters, had very strong wholesale shipments. And that was really to get our inventories back in line in that channel. And the performance just never came from that consumer. There's a possibility that the pricing increases that we've taken are impacting that channel differently than it's impacting our own channel. We have multiple tiers inside of our pricing. But all of our pricing has gone up.

我確實認為消費者在假期期間更加謹慎。在黑色星期五期間，我們在我們自己的商店中看到了強勁的表現，然後這種情況就出現了。我們沒有看到相同的速度和速度 - 特別是北美批發渠道。他們沒有——那個渠道沒有跟上全年的增長步伐。我們認為其中一部分是庫存問題，我們認為我們 - 如果我們能夠獲得更好的庫存狀況，我們確實認為我們會在日曆年的第三季度出現，因為我們已經發貨了，你看到了在我們的前兩個季度，批發出貨量非常強勁。這真的是為了讓我們的庫存在該渠道中恢復正常。而且性能從來都不是來自那個消費者。我們採取的價格上漲有可能對該渠道的影響不同於對我們自己渠道的影響。我們的定價中有多個層次。但是我們所有的價格都上漲了。

What we did see as a positive in both the North American and the European channels is where we had put our own selling staff back into the stores. We saw a fairly significant delta between the performance in those doors that had our own staffing in it and those doors that did not. And we intend on, as a part of our investment -- continued investment in the wholesale channel to take that level of staffing up. We talked about it once before. We said we'd see how that goes. And there's clearly been a positive result, especially in top-tier doors. So we intend on continuing to invest in that.

我們在北美和歐洲渠道中確實看到的積極因素是我們將自己的銷售人員放回商店。我們發現那些有我們自己的員工的門和沒有我們自己的門的性能之間存在相當大的差異。作為我們投資的一部分，我們打算繼續對批發渠道進行投資，以提高人員配備水平。我們之前談過一次。我們說我們會看看情況如何。顯然已經取得了積極的成果，尤其是在頂級門領域。所以我們打算繼續投資於此。

Again, in terms of category demand, we think the category continues to grow. I do have to say that the category was impacted across the department store channel, in particular, in North America. We saw it at all locations. So that was disappointing. We had expected that to really have an uptick, especially during the holiday season, and that unfortunately did not happen.

同樣，就類別需求而言，我們認為該類別將繼續增長。我不得不說，該品類在整個百貨商店渠道都受到了影響，尤其是在北美。我們在所有地方都看到了。所以這很令人失望。我們曾預計這種情況會真正有所回升，尤其是在假期期間，但不幸的是，這並沒有發生。

And in terms of our forecast, Matt, look, all we can do is provide the best guidance. And I think we gave very fulsome guidance. We do believe that we're going to continue to see strength in our own retail channel. That seems to be consistent with what we see happening. We do think that the reopening of China, in particular, will add additional opportunity for revenue in our own retail channel. And we do see some small additional increase in the travel retail channel. Again, in particular, in Asia, we think that will rebound. So I think we're feeling comfortable with that.

就我們的預測而言，馬特，你看，我們所能做的就是提供最好的指導。我認為我們提供了非常全面的指導。我們確實相信我們將繼續看到我們自己的零售渠道的實力。這似乎與我們看到的情況一致。我們確實認為，特別是中國的重新開放將為我們自己的零售渠道增加額外的收入機會。我們確實看到旅遊零售渠道有一些額外的小幅增長。同樣，特別是在亞洲，我們認為這將會反彈。所以我認為我們對此感到滿意。

We've planned the business to be down quite significantly in the -- our fourth quarter and into the first quarter of next year for our quarters. And that's really to offset where we were restocking the wholesale channel. That's on a global basis. And we've planned for, again, a slightly higher decline in Q2. The back half of the year, we've planned it more or less flat, which will still be a stacked year-on-year decline. And we've said wholesale would be down in the mid-teens. And by the way, that's across the group. That's just not Michael Kors. We're seeing our partners at multiple levels in the wholesale area be more conservative in their planning given some concerns around the consumer and how they might respond in general. So I think we're taking a very prudent point of view.

我們計劃業務在我們的第四季度和明年第一季度大幅下降。這真的是為了抵消我們在批發渠道補貨的地方。那是在全球範圍內。我們再次計劃第二季度的跌幅略高。今年下半年，我們計劃或多或少持平，但仍將同比下降。我們已經說過批發量會下降到十幾歲左右。順便說一句，這是整個集團的。那不是 Michael Kors。考慮到對消費者的一些擔憂以及他們的總體反應，我們看到我們在批發領域的多個級別的合作夥伴在他們的計劃中更加保守。所以我認為我們正在採取非常謹慎的觀點。

And then lastly, as Tom said in his prepared remarks, we're going to adjust our investments and our spend accordingly. The wholesale business for us was a profitable business and does not have a lot of fixed costs associated with it. So therefore, we'll have to make some adjustments inside of our own operations, and we're hard at work at that right now. So I think the takeaway for us is we have 3 incredibly strong brands with Versace, with Jimmy Choo and Michael Kors. We believe that these are very strong brands, and we believe that our strategic initiatives are very, very solid, and we're going to stay true to those -- to that vision. And I think that worked for us as we went through COVID. And we're going to stay with that strategy as we go through this kind of change in how we're going to be running the business given a lower wholesale business that has lower associated costs up against it, and we'll continue to work our model accordingly. So thank you very much for that question, Matt.

最後，正如湯姆在準備好的發言中所說，我們將相應地調整我們的投資和支出。批發業務對我們來說是一項有利可圖的業務，並且沒有很多與之相關的固定成本。因此，我們將不得不在我們自己的運營內部進行一些調整，我們現在正在努力工作。所以我認為我們的收穫是我們擁有 3 個非常強大的品牌，包括范思哲、Jimmy Choo 和 Michael Kors。我們相信這些都是非常強大的品牌，我們相信我們的戰略舉措非常、非常穩固，我們將忠於這些——忠於這一願景。我認為這在我們經歷 COVID 時對我們有用。我們將堅持這一戰略，因為我們要經歷這種我們將如何經營業務的變化，因為批發業務較低，相關成本也較低，我們將繼續努力我們的模型相應。非常感謝你提出這個問題，馬特。

Our next question is from the line of Omar Saad with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Omar Saad。

This is Warren Cheng on the line for Omar. I just wanted to dig in a little bit further on the 4Q sales guidance. It's a pretty big step down, even from the 3Q change. So just to clarify, is that all coming on the wholesale side? Or did you change the outlook on the retail side, too? And then also, just if I look geographically and focusing on China, I think we all understand what happened in December for China. But looking past December, have your expectations for China changed there vs. 3 months ago?

我是 Warren Cheng，為 Omar 接聽電話。我只是想進一步深入了解第四季度的銷售指導。這是一個相當大的進步，即使是從第三季度的變化來看也是如此。所以只是澄清一下，所有這些都是批發方面的嗎？還是您也改變了零售方面的前景？然後，如果我從地理上看並關注中國，我想我們都明白中國在 12 月發生了什麼。但回顧過去的 12 月，與 3 個月前相比，您對中國的預期是否發生了變化？

It's Tom here. Thanks for the question. And for Q4, we've really taken a more cautious outlook due to the increasingly uncertain macroeconomic environment and also, as John mentioned, inflation impacting consumer confidence. So what we've seen there is a big step down in wholesale for -- down 35% versus prior year and Mainland China down 35%. So in total, if I do that on an absolute dollar basis, that's pretty much the whole reduction versus our prior year for the quarter.

我是湯姆。謝謝你的問題。對於第四季度，由於宏觀經濟環境的不確定性越來越大，而且正如約翰提到的那樣，通貨膨脹影響了消費者信心，我們確實採取了更加謹慎的前景。因此，我們所看到的是批發量大幅下降——與去年同期相比下降了 35%，中國大陸下降了 35%。因此，總的來說，如果我以絕對美元為基礎這樣做，那幾乎是本季度與上一年相比的全部減少。

We still expect retail to grow mid-single digits. And this is a slight change in our China outlook because we do have opportunity next year, we believe, as they are reopening. However, as they've taken away all the restrictions, the COVID cases had surge that has created, I think, a near-term pullback in traffic and results.

我們仍然預計零售業將增長中等個位數。這是我們對中國前景的輕微改變，因為我們相信明年我們確實有機會，因為他們正在重新開放。然而，由於他們取消了所有限制，COVID 病例激增，我認為這造成了近期流量和結果的回落。

Our next question comes from the line of Ike Boruchow with Wells Fargo.

我們的下一個問題來自 Ike Boruchow 與 Wells Fargo 的對話。

I guess, John, if you could just clarify 2 quick questions on wholesale. So I believe, based on your answer to Matt, that you're kind of talking about next year wholesale being basically down 30 in the first half and flat in the back half. But I think you said Q2 should be worse than Q1. If I heard that right, could you just clarify why that would be?

我想，約翰，如果你能澄清 2 個關於批發的快速問題。所以我相信，根據你對馬特的回答，你是在談論明年批發市場在上半年基本上下降了 30，在下半年持平。但我認為你說Q2應該比Q1差。如果我沒聽錯，你能解釋一下為什麼會這樣嗎？

And then just within the wholesale cost structure, obviously, it's a little out of whack because of the declines. How quickly do you think it will take -- how much time do you think it will take to kind of align the cost structure so that you feel like you're in a good position to go forward from a profitability perspective out of that channel?

然後就在批發成本結構中，顯然，由於下降，它有點不正常。您認為需要多長時間 - 您認為需要多長時間才能調整成本結構，以便您覺得自己處於有利地位，可以從該渠道的盈利能力角度向前推進？

Sure, Ike. It's Tom here. I'll take those. So for wholesale, Q1, Q2 next year, so overall, as you mentioned, will be down 15% for the year. We expect declines in the first half as we are anniversary-ing the restocking in fiscal '23, and that's going to be more weighted to the first quarter. So the first quarter in wholesale will be down more than the second quarter on a year-over-year basis. So hopefully, that answers the first question.

當然，艾克。我是湯姆。我會拿那些。所以對於批發來說，明年第一季度，第二季度，正如你提到的那樣，總體而言，今年將下降 15%。我們預計上半年會出現下滑，因為我們正在對 23 財年的補貨進行週年紀念，而且第一季度的權重將更大。因此，第一季度的批發量將比第二季度同比下降更多。希望這能回答第一個問題。

And then in terms of aligning costs, as we mentioned, wholesale has a lower variable cost structure. And so we are working on a number of initiatives to reduce expenses, have embedded those into our guidance. And we're recalibrating the rate of spend across all our divisions and reducing non-revenue-generating expenses in corporate, for instance, and also a rigorous evaluation of other expenses not directly linked to consumer engagement and revenue and other areas that are driving the business. That said, we're going to continue to invest, particularly in marketing, but also in areas like e-commerce and digital that we know drive engagement and allow us to use that large database and growing database.

然後就調整成本而言，正如我們提到的，批發具有較低的可變成本結構。因此，我們正在製定一系列減少開支的舉措，並將其納入我們的指導方針。我們正在重新調整我們所有部門的支出率並減少公司的非創收支出，例如，還嚴格評估與消費者參與度和收入以及其他推動增長的領域沒有直接關係的其他支出商業。也就是說，我們將繼續投資，特別是在營銷方面，但也會在我們知道推動參與並允許我們使用大型數據庫和不斷增長的數據庫的電子商務和數字等領域進行投資。

And Ike, I want to clarify one thing, and I understand why you asked the question. So we are planning at retail, the business down with our partners across the group in the wholesale channel in the first half of calendar year and the back half of calendar year. So this is at retail sales, not wholesale, at retail. So it's POS. We are planning the business roughly flat. And there might be some exceptions to that, whether it's Jimmy Choo planned up slightly. But in terms of impacting the total company, we think that that's the right way to view how what may happen with the consumer in the back half of the year. And we think that's prudent with Michael Kors, given that there was such a high decline in the channel during the back half of the year.

艾克，我想澄清一件事，我理解你問這個問題的原因。因此，我們計劃在零售方面，在日曆年上半年和日曆年下半年與批發渠道的整個集團合作夥伴開展業務。所以這是零售銷售，而不是批發零售。所以這是POS。我們計劃業務大致持平。並且可能會有一些例外，無論是 Jimmy Choo 稍微計劃一下。但就影響整個公司而言，我們認為這是查看下半年消費者可能發生的情況的正確方法。考慮到今年下半年該渠道的下滑幅度如此之大，我們認為 Michael Kors 的做法是謹慎的。

I might add one other thing, too, in terms of color. We did not have that decline last year. So in calendar 2021, we actually had a very strong performance with the Michael Kors brand in the retail -- in the wholesale, in particular, department store channel. So this was -- as I said, this could be caused by some of the price increases that we've seen happen. We can't speak to what staffing levels were in the stores, et cetera. But we know where we put our own people in. We know in our own stores where we have our own teams in place, we are doing, I think, a very good job connecting with the consumer. We also know that when you have database grow the way that we saw -- and by the way, those are predominantly consumers who are actually purchasing from us. So usually, when the database is growing, they have made a purchase from us. So that shows us that there's tremendous interest in all 3 of these brands. And so again, we feel confident. And I know that it's not going to be easy for many of you on this call and people listening in given the step-change in the wholesale business. But again, we continue to look at the strength and the power of these 3 houses. We're going to have to pivot a little more quickly than we had anticipated because we always have wanted the wholesale business to get down to around 20% of the company sales. This just happened a little faster than we would have anticipated. But I think we've shown we can be nimble and really move forward quickly. And so I think you can expect to see some of the fruits of our initiatives around rebalancing certain costs and areas to happen relatively quickly.

我也可以在顏色方面添加另一件事。去年我們沒有這種下降。因此，在 2021 年日曆中，我們實際上在零售領域與 Michael Kors 品牌的表現非常強勁——在批發領域，尤其是百貨商店渠道。所以這是 - 正如我所說，這可能是由我們看到的一些價格上漲引起的。我們不能說商店裡的人員配備水平，等等。但是我們知道我們把自己的人放在什麼地方。我們知道在我們自己的商店裡，我們有自己的團隊，我認為我們在與消費者建立聯繫方面做得很好。我們還知道，當您的數據庫以我們看到的方式增長時——順便說一句，那些主要是實際從我們這裡購買的消費者。所以通常，當數據庫在增長時，他們會從我們這裡購買。因此，這向我們表明，人們對所有這 3 個品牌都表現出極大的興趣。因此，我們再次感到自信。而且我知道，考慮到批發業務的逐步變化，對於你們中的許多人和傾聽的人來說，這並不容易。但同樣，我們繼續關注這 3 個宮位的實力和力量。我們將不得不比我們預期的更快地轉變，因為我們一直希望批發業務下降到公司銷售額的 20% 左右。這只是發生得比我們預期的要快一點。但我認為我們已經表明我們可以靈活並真正快速前進。因此，我認為您可以期待看到我們圍繞重新平衡某些成本和領域的舉措取得的一些成果，這些舉措會相對較快地發生。

Our next question is from the line of Alex Straton with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Straton。

I wanted to focus on gross margin here. It appears to have held in quite nicely. Perhaps could you just share your observations on the promotional environment in the quarter as well as the assumptions you have embedded in a modest expansion guidance going forward?

我想在這里關注毛利率。它似乎保持得很好。也許您能分享一下您對本季度促銷環境的看法，以及您在未來適度擴張指南中嵌入的假設嗎？

Thank you, Alex. I think the better news in our report was, first, our performance at our own retail stores; second, again, the database growth showing the health and the response of the consumer to our brands and I think the gross margin also. We had a number of things that impacted the gross margin positively. Again, we've had this sequential price increase. We told you either 2 calls ago or last call, we are not going to be taking any more price increases. There's a little bit of it that will flow through in the first half of the year. And then we're stopping the price increases across the group. For the time being, we're going to take a pause. We also took fairly significant price increases at Jimmy Choo and Versace as well. So we think we're in a good place in terms of where our pricing is right now. And part of that's reflecting in the gross margin. Tom will speak to some of the other areas that also impacted it positively. So I think that you'll see 2 things next year. Again, you'll see a little bit of some of the freight and the benefit. That will start to show up a little bit more in next year. And secondly, there'll be a channel mix. As retail becomes a bigger part, that'll also show up in the gross margin. But let me have Tom speak to this year and next year.

謝謝你，亞歷克斯。我認為我們報告中的好消息首先是我們在自己零售店的表現；其次，數據庫的增長再次顯示了消費者對我們品牌的健康和反應，我認為毛利率也是如此。我們有很多對毛利率產生積極影響的事情。同樣，我們經歷了連續的價格上漲。我們告訴過您 2 個電話前或最後一個電話，我們不會再漲價。有一點會在今年上半年流過。然後我們將停止整個集團的價格上漲。目前，我們將暫停一下。我們還對 Jimmy Choo 和 Versace 進行了相當顯著的提價。因此，我們認為就我們目前的定價而言，我們處於一個很好的位置。其中一部分反映在毛利率上。 Tom 將談到其他一些也對其產生積極影響的領域。所以我認為明年你會看到兩件事。同樣，您會看到一些運費和收益。這將在明年開始出現更多。其次，會有渠道組合。隨著零售成為更大的一部分，這也會出現在毛利率中。但讓我讓湯姆在今年和明年發言。

Sure. I'm happy to give a little more color on Q3, and it's very similar trends for Q4. So as John mentioned, we did see moderating inbound freight cost. We benefited from the price increases that are still ongoing but will stop in the future and the channel mix with a higher retail versus wholesale. We were not more promotional. But given the better inventory position compared to last year, we did have a more normalized level of promotional or markdown sales. And some additional headwinds included regional mix. As we've been saying over the past several quarters, Asia is a lower percentage of revenue, and it's a higher margin as well as the stronger dollar, which has hurt us through the year on a margin perspective.

當然。我很高興為第三季度提供更多色彩，這與第四季度的趨勢非常相似。因此，正如約翰所提到的，我們確實看到了入境運費的下降。我們受益於仍在持續但將在未來停止的價格上漲以及零售與批發更高的渠道組合。我們沒有更多的促銷活動。但鑑於與去年相比更好的庫存狀況，我們確實有更正常的促銷或降價銷售水平。一些額外的不利因素包括區域組合。正如我們在過去幾個季度所說的那樣，亞洲佔收入的比例較低，但利潤率較高，而且美元走強，從利潤率的角度來看，這對我們造成了全年的傷害。

But as we look at next year, retail will be a larger portion of the business. We expect a rebound in China, which will be a tailwind, and freight as well. This is in addition to the strategic initiatives on our brands, which, over the past several years, have driven significant improvements in gross margin across our brands, all of our brands. And wholesale, as John mentioned, in the first half, it's going to be a headwind because of deleverage with that low variable cost base. But as we normalize in the back half, those other areas will shine through.

但展望明年，零售業務將佔據更大的份額。我們預計中國的反彈將是順風，貨運也是如此。這是對我們品牌的戰略舉措的補充，在過去幾年中，這些舉措推動了我們所有品牌的毛利率顯著提高。正如約翰提到的那樣，在上半年，由於低可變成本基礎的去槓桿化，批發將成為逆風。但當我們在後半場恢復正常時，其他領域將會大放異彩。

I might also add that we feel that FX will probably not be a headwind or a tailwind next year. We're expecting it to more or less normalize. And it'll still be a headwind in the first 2 quarters. But then by the time we get to the back half of the year, it should be normalized or just a very minor tailwind. So hopefully, some of that noise will start to come out of the performance numbers. And as you know, it's been a significant headwind for us this year. Thank you, Alex.

我還可以補充說，我們認為 FX 明年可能不會成為逆風或順風。我們期望它或多或少正常化。而且在前兩個季度它仍然是一個逆風。但是當我們進入今年下半年時，它應該正常化或者只是一個非常小的順風。所以希望，一些噪音將開始從性能數據中消失。如您所知，今年這對我們來說是一個重大的阻力。謝謝你，亞歷克斯。

The next question is coming from the line of Brooke Roach with Goldman Sachs.

下一個問題來自布魯克羅奇與高盛的合作。

John, I know you mentioned pricing as a potential explanation of what could be driving additional weakness in wholesale. Along those lines, can you talk about the momentum that you're seeing across your business within various income demographic cohorts or price tiers of your product architecture? Is there any difference in sell-through trends or sell-out trends in your own retail business in outlet versus mainline stores, particularly in North America?

約翰，我知道你提到定價是可能導致批發市場進一步疲軟的潛在解釋。按照這些思路，您能否談談您在各種收入人群或產品架構的價格層級中看到的整個業務的發展勢頭？您自己的直銷店零售業務與主線商店的銷售率趨勢或售罄趨勢是否存在差異，尤其是在北美？

Separately, you've had nice growth in your consumer database. Can you talk to the repeat purchase activity that you're seeing from customer cohorts that were acquired over the last few years that may be more price sensitive?

另外，您的消費者數據庫有了不錯的增長。您能否談談您從過去幾年獲得的可能對價格更敏感的客戶群體中看到的重複購買活動？

Thank you, Brooke. Brooke, the overall -- what's very interesting about our database and the consumer and the database, and we've actually reviewed this yesterday, we're still -- and this is also in particular to Michael Kors, we're still dealing with a fairly high income demographic in the Michael Kors database. And it hasn't changed a lot over the last 5, 6, 7 years, which we think is a good sign, where there's been a concern, does a lower-income consumer be driven more towards the brand? And did we lose any brand equity with more higher-income consumer? And so far, that has not been the case.

謝謝你，布魯克。 Brooke，總的來說——我們的數據庫、消費者和數據庫有什麼非常有趣的地方，實際上我們昨天已經審查過這個，我們仍然——這也是特別針對 Michael Kors 的，我們仍在處理Michael Kors 數據庫中收入相當高的人群。在過去的 5、6、7 年裡，它並沒有太大變化，我們認為這是一個好兆頭，人們一直擔心，低收入消費者是否會更多地轉向該品牌？我們是否失去了更多高收入消費者的品牌資產？到目前為止，情況並非如此。

What's also interesting is, while we do have crossover between the channels, between e-commerce and our stores, the crossover is not as great as we continue to anticipate. So the good news for us is -- and probably 60% of our database growth, and it's pretty consistent across the group, is coming through the e-commerce channel. It's not cannibalizing the store customers. So we think that's a very healthy mix.

同樣有趣的是，雖然我們確實在渠道之間、電子商務和我們的商店之間進行了交叉，但交叉並不像我們繼續預期的那麼大。因此，對我們來說，好消息是——我們數據庫增長的 60% 可能是通過電子商務渠道實現的，而且整個集團的增長都非常一致。它並沒有蠶食商店的顧客。所以我們認為這是一個非常健康的組合。

And you can see, as Tom mentioned, we significantly accelerated our marketing activities across all 3 of our houses during the quarter. And that was a very distinct decision on our part to do that. We knew that many of our competitors in Europe and North America would also be accelerating their spend. And we thought to be competitive from a mind-share standpoint that we had to really make sure that our brands were shining through. And so the good news for that is these databases are getting so sizable that, in certain ways, some of our direct-to-consumer marketing costs may be coming down a little bit next year. And that's because we're going to be able to mine the existing databases. And we've seen a acceleration on repeat customers inside. We've been able to, really through our data analytics tactics, get those consumers lapsed and repeat to transact with us more regularly. So we feel that there's a opportunity for us to create some leverage in next year, given the size of the databases at all 3 of the companies and how we can start to leverage that. And again, we're still going to invest, as Tom said, in overall marketing across the group. We think that's one of the most important initiatives to be competitive again with the European luxury houses as well as the North American competitors who have very strong brand statements. So we have to continue to invest in that. And we're going to continue to invest in our stores, renovations, et cetera. And then lastly, we think that our clienteling initiatives, we're really going to step that up over the next 2 years. It's going to take us more time to get to a place where we feel that, that's going to be a competitive advantage for us, but it's, again, a very important part of our strategy across the group. Thank you very much, Brooke.

你可以看到，正如湯姆所提到的，我們在本季度顯著加快了我們所有 3 個房屋的營銷活動。這是我們做出的一個非常明確的決定。我們知道我們在歐洲和北美的許多競爭對手也將加快支出。我們認為從思想分享的角度來看我們必須真正確保我們的品牌閃耀。因此，好消息是這些數據庫變得如此龐大，以至於在某些方面，明年我們的一些直接面向消費者的營銷成本可能會有所下降。那是因為我們將能夠挖掘現有的數據庫。我們已經看到內部回頭客的增長速度加快。實際上，通過我們的數據分析策略，我們已經能夠讓這些消費者流失並重複與我們更頻繁地進行交易。因此，考慮到所有 3 家公司的數據庫規模以及我們如何開始利用它，我們認為我們有機會在明年創造一些影響力。同樣，正如湯姆所說，我們仍將投資於整個集團的整體營銷。我們認為這是與歐洲奢侈品牌以及擁有非常強大品牌聲明的北美競爭對手再次競爭的最重要舉措之一。所以我們必須繼續投資於此。我們將繼續投資於我們的商店、裝修等。最後，我們認為我們的客戶計劃，我們真的會在未來兩年內加強它。我們需要更多時間才能達到我們認為這將成為我們的競爭優勢的地方，但這又是我們整個集團戰略的一個非常重要的部分。非常感謝你，布魯克。

The next question is from the line of Paul Lejuez with Citigroup.

下一個問題來自花旗集團的 Paul Lejuez。

Just a couple quick ones. Curious if you can talk about transactions versus ticket within the DTC business that you saw in the quarter and what you expect going forward. Then free cash flow assumption for F '24 and then just China, the assumption in the first half or second half of '24.

只是幾個快速的。想知道您是否可以談論您在本季度看到的 DTC 業務中的交易與門票以及您對未來的期望。然後是 F '24 的自由現金流假設，然後是中國，即 '24 上半年或下半年的假設。

Paul, thank you. Paul, we really didn't see a lot of change in transaction or UPTs. So that wasn't an issue for us. We did see a small decline in the ticket, and that was really more of a result of -- we saw a shift to smaller -- to a return to smaller bags. And I would say, we saw that across the group, where there was much more crossbodies, small leather goods. We benefited, during COVID, over a lot of larger bags selling where people were needing to put more things in larger bags. And so actual retail price of units was not down, but the actual transaction was slightly down, and that was more because of -- we've seen a very -- a double-digit increase in our small leather goods business, and we classify our crossbodies in that category, which really reflected, I think, people enjoying the holidays, going out and partying, dressing up. And so unit sales were slightly higher than actual retail performance, and that's driven by a lean-in by the consumer into that category of product. I'll turn over the cash flow to Tom.

保羅，謝謝你。保羅，我們真的沒有看到交易或 UPT 有太大變化。所以這對我們來說不是問題。我們確實看到票價略有下降，這實際上更多是由於——我們看到了向更小的轉變——回歸到更小的包袋。我要說的是，我們在整個團隊中都看到了這一點，那裡有更多的斜挎包和小皮具。在 COVID 期間，我們受益於許多大袋子的銷售，人們需要將更多東西放在大袋子裡。因此，單位的實際零售價並沒有下降，但實際交易略有下降，這更多是因為——我們已經看到——我們的小型皮具業務實現了兩位數的增長，我們將其歸類為我們在該類別中的斜挎包，我認為這確實反映了人們享受假期、外出和聚會、盛裝打扮。因此，單位銷售額略高於實際零售業績，這是由於消費者傾向於購買該類別的產品。我會把現金流交給湯姆。

Sure. With regard to cash flow, you asked about last year, but just to comment on this year, we're at free cash flow of approximately $450 million year-to-date, and our Q3 was even above that. So we had an incredibly strong cash flow quarter. We would anticipate next year that we'll have similar cash flows. That has always been a strength of the company that we're generating strong free cash flows across our brands. And our balance sheet is extremely strong. We noted in my prepared remarks a net debt of $1.26 billion. And our leverage ratio is very solid and low. So we feel very comfortable with the strength of both our balance sheet and our cash flow, and we're using that to redeploy and purchase shares to return cash to shareholders.

當然。關於現金流，你問了去年，但只是對今年發表評論，我們今年迄今的自由現金流約為 4.5 億美元，而我們的第三季度甚至更高。所以我們有一個非常強勁的現金流季度。我們預計明年我們將有類似的現金流。這一直是公司的優勢，我們正在通過我們的品牌產生強大的自由現金流。我們的資產負債表非常強勁。我們在準備好的發言稿中指出，淨債務為 12.6 億美元。而且我們的槓桿率非常穩固且很低。因此，我們對資產負債表和現金流的實力感到非常滿意，我們正在利用它來重新部署和購買股票，以向股東返還現金。

So when we look at our capital allocation priorities, still number one, invest in the business; number two remains returning cash to shareholders, and then pay down debt, which we have done over time and managed very carefully.

因此，當我們審視我們的資本配置優先事項時，仍然是第一，投資於業務；第二個仍然是向股東返還現金，然後償還債務，我們一直在這樣做，並且管理得非常小心。

And as regards to China into fiscal '24, we expect it to grow at an outsized rate compared to the overall growth of retail. I think we had mentioned the retail business, we expect to be up double digits driven, first, by Asia, mainly reflecting China and excluding that, up mid-single digits across the remainder of the world.

至於進入 24 財年的中國，我們預計它的增長速度將超過零售業的整體增長速度。我想我們已經提到了零售業務，我們預計將增長兩位數，首先是亞洲，主要反映中國，不包括中國，在世界其他地區增長中等個位數。

Our next question is from the line of Simeon Siegel with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Simeon Siegel。

I apologize if I missed it, but John, would love to hear your opinion on whether you think the domestic department store weakness is more a broader consumer demand in traffic versus the stores' attempt to reduce their own inventory? So just trying to think through how big of an industry pressure point you think it might be and how long it might last? And then Tom, if I can, how are you thinking about the Michael Kors' EBIT margins versus the prepandemic to the earlier point about wholesale having little fixed costs and just any help on thinking through decremental margins on wholesale from the lower revenues.

如果我錯過了，我深表歉意，但是約翰，很想听聽您的意見，您是否認為國內百貨商店的疲軟更廣泛的是消費者對客流量的需求，而不是商店試圖減少自己的庫存？所以只是想通過你認為可能有多大的行業壓力點以及它可能持續多長時間來思考？然後，湯姆，如果可以的話，你如何看待 Michael Kors 的息稅前利潤率與大流行前的關係，以及早期關於批發幾乎沒有固定成本的觀點，以及對考慮較低收入導致的批發利潤率下降的任何幫助。

Simeon, number one, I want to say that our partners, both in North America and in Europe, have been terrific partners. So we worked very closely together all through the pandemic and exiting the pandemic. And the first half of this -- of last calendar year, we had tremendous difficulties filling the inventory needs of the department stores. And as I said to you, coming out of calendar 2021, we actually had a very strong holiday season with that channel, and we were depleted in inventories. And so we didn't really get caught up in terms of inventory at retail until almost August of this past year.

Simeon，第一，我想說我們在北美和歐洲的合作夥伴都是非常棒的合作夥伴。因此，在整個大流行期間和結束大流行期間，我們都非常密切地合作。上半年——上個日曆年，我們在滿足百貨公司的庫存需求方面遇到了巨大困難。正如我對你說的那樣，從 2021 日曆年開始，我們實際上在這個渠道度過了一個非常強勁的假期，我們的庫存已經耗盡。因此，直到去年近 8 月，我們才真正陷入零售庫存問題。

The inventories got to retail. We did not see any type of a significant step-change in the channels. And we were, as I said, very hopeful. And we did run some tests with additional staffing in the stores, which worked well for us. But we just didn't see the conversion with the consumer in that channel. I can't tell specifically whether it was our prices or not. But we just know the channel didn't deliver in our category, and obviously, the biggest category being the accessories part of it.

庫存開始零售。我們沒有看到渠道發生任何類型的重大變化。正如我所說，我們充滿希望。我們確實在商店中增加了員工進行了一些測試，這對我們來說效果很好。但我們只是沒有看到該渠道中消費者的轉化。我不能具體說這是不是我們的價格。但我們只知道該渠道沒有在我們的類別中提供，顯然，最大的類別是其中的配件部分。

I don't know whether this is going to continue or not. We've seen a continuing weakness, as I've said, through January. So we've taken, again, a very prudent step. We do not want to put additional inventory into the channel to cause markdowns, which we think will cause brand erosion. And we've worked too hard to get ourselves to this point. We've said we would suffer the inventory declines if -- and the wholesale shipment declines if that meant preserving the brand, and I think we're going to continue to do that.

我不知道這是否會繼續下去。正如我所說，整個一月份我們都看到了持續的疲軟。因此，我們再次採取了非常謹慎的步驟。我們不想在渠道中投入額外的庫存來引起降價，我們認為這會導致品牌侵蝕。我們太努力了，沒能走到這一步。我們已經說過，如果 - 如果這意味著保留品牌，我們將遭受庫存下降 - 批發出貨量下降，我認為我們將繼續這樣做。

We know that we're on the right track with elevating Michael Kors. We know we're on the right track with Versace. And I think you're going to see some very powerful things happen at Versace here momentarily. We've announced our fashion show on March 10 out in California, in Los Angeles. Our new CEO, Emmanuel Gintzburger, is hard at work, and he's making some incredible strides along with Donatella. And I think you're going to see a real step-change in terms of what the product looks like, where we're going marketing-wise. So we're extremely enthusiastic about what's happening there.

我們知道我們在提升 Michael Kors 方面走在正確的軌道上。我們知道我們在 Versace 的正確軌道上。我認為您很快就會在 Versace 看到一些非常有影響力的事情發生。我們已經宣布我們的時裝秀將於 3 月 10 日在加利福尼亞州洛杉磯舉行。我們的新任首席執行官 Emmanuel Gintzburger 努力工作，他與 Donatella 一起取得了令人難以置信的進步。而且我認為你會在產品外觀方面看到真正的階躍變化，我們將在營銷方面進行營銷。所以我們對那裡發生的事情非常熱情。

And Jimmy Choo has been on a pretty good trajectory through the year. And in fact, I do need to call out that Jimmy Choo did have a very strong retail performance during the holiday season. But our partners are very concerned about where the consumer is going to be next year and has taken a step change down, even with our performance on being conservative on inventory. And we're -- quite frankly, we're okay with that. We don't want to have excessive markdowns in these stores. We think that's the wrong place for us to end up. So we have to be focused on, if you're going to believe in a luxury company and long-term brand health, then you've got to stay committed to what your strategy is. And I think ourselves and our management team are committed to that. So I'll turn it over to Tom.

Jimmy Choo 在這一年裡一直處於良好的發展軌跡。事實上，我確實需要指出，Jimmy Choo 在假日季的零售表現確實非常強勁。但是我們的合作夥伴非常關心明年消費者的去向，並且已經採取了一些措施，即使我們在庫存方面表現保守。我們 - 坦率地說，我們對此表示滿意。我們不想在這些商店中進行過多的降價促銷。我們認為那是我們結束的錯誤地方。所以我們必須關注，如果你要相信一家奢侈品公司和長期的品牌健康，那麼你必須堅持你的戰略。我認為我們自己和我們的管理團隊都致力於這一點。所以我會把它交給湯姆。

And Simeon, with regard to Michael Kors operating margin long term, we continue to believe in the mid-20% range operating margin goal for the Michael Kors brand. Near term, there's definitely a step-change in the wholesale revenue. and we will adjust our cost structure to address that, and we've already begun to rebalance the cost base.

而 Simeon，關於 Michael Kors 的長期營業利潤率，我們仍然相信 Michael Kors 品牌的營業利潤率目標在 20% 左右。短期內，批發收入肯定會發生階躍變化。我們將調整我們的成本結構來解決這個問題，我們已經開始重新平衡成本基礎。

As we look at '24, as I mentioned, in the first half, the wholesale declines will create deleverage. But then the initiatives, the growth in retail, China and Asia becoming a larger portion of the mix, again, as they recover and little freight tailwinds, we believe, along with our strategic initiatives, will get us back on that path. Thank you, Simeon.

當我們回顧 24 年時，正如我提到的，在上半年，批發下降將造成去槓桿化。但隨後的舉措、零售業的增長、中國和亞洲成為組合中更大的一部分，我們相信，隨著它們的複蘇和貨運的小逆風，連同我們的戰略舉措，將使我們重回這條道路。謝謝你，西蒙。

I'd like to thank everyone for joining our call this morning. Again, we are very disappointed in our results for the third quarter and our guidance for the fourth quarter. That being said, we believe in the strength of our 3 luxury houses. We believe that we have a very good plan for fiscal year '24 on a go-forward basis. That will continue to embrace and support the strength of each of these 3 phenomenal brands, and we believe that we will return to the type of growth that we expect in the future. So thank you very much for your support, and we look forward to keeping you updated. Thank you.

我要感謝大家今天早上加入我們的電話會議。同樣，我們對第三季度的業績和第四季度的指引感到非常失望。話雖如此，我們相信我們 3 家豪宅的實力。我們相信，我們在前進的基礎上為 24 財年制定了一個非常好的計劃。這將繼續擁抱和支持這三個非凡品牌的實力，我們相信我們將在未來恢復到我們預期的增長類型。非常感謝您的支持，我們期待為您提供最新信息。謝謝。

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。