雅詩蘭黛 (EL) 2025 Q3 法說會逐字稿

Good day, everyone, and welcome to the Estee Lauder Company's fiscal 2025 third-quarter conference call. Today's webcast is being recorded. For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini.

大家好，歡迎參加雅詩蘭黛公司2025財年第三季電話會議。今天的網路直播正在錄製中。為了致開幕詞和介紹，我想將電話轉給投資者關係資深副總裁 Rainey Mancini 女士。

Hello. On today's webcast are Stephane de La Faverie, President and Chief Executive Officer; and Akhil Shrivastava, Executive Vice President and Chief Financial Officer.

你好。今天的網路廣播嘉賓有總裁兼執行長 Stephane de La Faverie；以及執行副總裁兼財務長 Akhil Shrivastava。

Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC where you'll find vectors that could cause actual results to differ materially from these forward-looking statements.

由於我們今天的許多言論都包含前瞻性陳述，請允許我向您推薦我們的新聞稿和提交給美國證券交易委員會的報告，您會發現一些可能導致實際結果與這些前瞻性陳述存在重大差異的因素。

To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release. Unless otherwise stated, all organic net sales growth also excludes non-comparable impacts of acquisitions, divestitures, brand closures, and the impact of foreign currency translation. You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website.

為了方便討論我們的基礎業務，對我們的財務表現和預期的評論是在新聞稿中披露的重組和其他費用和調整之前進行的。除非另有說明，所有有機淨銷售額成長也不包括收購、資產剝離、品牌關閉以及外幣折算的不可比影響。您可以在我們的新聞稿和我們網站的投資者部分找到 GAAP 和非 GAAP 指標之間的對帳。

As a reminder, references to online sales include sales we make directly to our consumers through our brand.com sites and through third-party platforms. It also includes estimated sales of our products through our retailers' websites. Throughout our discussion, our profit recovery and growth plan will be referred to as our PRGP.

提醒一下，線上銷售包括我們透過 brand.com 網站和第三方平台直接向消費者進行的銷售。它還包括我們產品透過零售商網站的預期銷售量。在整個討論過程中，我們的利潤恢復和成長計劃將被稱為 PRGP。

During the Q&A session, we ask that you please limit yourself to one question so we can respond to all of you within the time scheduled for this webcast. And now I'll turn the webcast over to Stephane.

在問答環節，我們要求您將問題限制在一個範圍內，以便我們能夠在本次網路廣播預定的時間內答覆所有問題。現在我將網路直播交給 Stephane。

Thank you, Rainey. And hello to everyone. It's great to be with you today to review our third quarter results, share the progress that we are making on our Beauty Reimagined strategic vision and discuss our fiscal 2025 outlook.

謝謝你，雷尼。向大家問好。很高興今天能和大家一起回顧我們第三季度的業績，分享我們在「重塑美麗」戰略願景方面取得的進展，並討論我們 2025 財年的展望。

Amid elevated macroeconomic challenges, our commitment to transforming our operating model to be leaner, faster, and more agile as the most consumer-centric prestige beauty company globally through Beauty Reimagined has only deepened. The executive team, our Board of Directors, and the organization remain committed in restoring sustainable sales growth and achieving a solid double-digit adjusted operating margin over the next few years.

在宏觀經濟挑戰加劇的背景下，我們致力於透過 Beauty Reimagined 將我們的營運模式轉變為更精簡、更快速、更敏捷，成為全球最以消費者為中心的高端美容公司，這項承諾只會更加堅定。執行團隊、董事會和組織將繼續致力於恢復可持續的銷售成長，並在未來幾年實現穩健的兩位數調整後營業利潤率。

First, let me briefly review our fiscal third quarter performance. Organic sales declined 9% as expected. Our business, excluding travel retail, decreased 3% organically, a sequential improvement from the 4% decline in the second quarter. Travel retail declined 28% organically and it continues to shrink as a percentage of our business towards the low teens. Diluted earnings per share decreased 33%, far better than we anticipated in our outlook, showing disciplined expense management. Gross margin was a bright spot, expanding over 300 basis points to the fourth consecutive quarter as the PRGP continued to deliver meaningful benefits. Operating margin of 11.4% contracted 270 basis points, driven by increased consumer-facing spending as volume de-leveraged from the decline and travel retail was offset by PRGP benefits.

首先，讓我簡單回顧一下我們第三財季的業績。有機銷售額如預期下降 9%。我們的業務（不包括旅遊零售）有機下降了 3%，較第二季 4% 的降幅有所改善。旅遊零售業有機下降了 28%，其占我們業務的比例繼續下降至百分之十幾。稀釋每股盈餘下降 33%，遠超我們的預期，顯示出嚴格的費用管理。毛利率是一個亮點，由於 PRGP 繼續帶來顯著效益，毛利率連續第四個季度擴大超過 300 個基點。營業利潤率為 11.4%，收縮了 270 個基點，原因是面向消費者的支出增加，因為銷售量因下滑而去槓桿化，並且旅遊零售被 PRGP 收益所抵消。

We struck a good balance between reducing certain SG&A expenses and increasing consumer-facing investments. We pivoted quickly as volatility increased, choosing to spend less than what we expected towards incremental consumer-facing dollars, showing new discipline in how we are operating our business as we focus on higher ROI opportunities.

我們在減少某些銷售、一般和行政費用與增加面向消費者的投資之間取得了良好的平衡。隨著波動性的增加，我們迅速做出調整，選擇以低於預期的金額增加面向消費者的支出，在專注於更高投資回報率機會的同時，展現出我們在業務運營方面的新紀律。

We've been laser-focused on improving our retail sales trends and delivering a sequential acceleration in global retail sales growth, excluding travel retail. We outperform in the U.S., China, and Japan, and a couple of emerging markets in Southeast Asia to gain share. This marks the first share gains in the U.S. in many, many years. For China, we have now gained shares in three of the last four quarters. And for Japan, it is our fourth consecutive quarter of share gains, showing the tremendous strength of our brands in these key markets.

我們一直致力於改善零售銷售趨勢，並實現全球零售銷售（不包括旅遊零售）成長的連續加速。我們在美國、中國、日本以及東南亞的一些新興市場表現出色，贏得了市場份額。這是美國股市多年來首次上漲。就中國而言，我們在過去四個季度中的三個季度中都實現了市場份額成長。對日本而言，這是我們連續第四個季度實現市場份額成長，展現了我們品牌在這些關鍵市場的巨大實力。

Clinique, The Ordinary,nd Bumble and bumble drove gains for the U.S. Clinique now has gained share in 11 consecutive months through March. La Mer, Estee Lauder, and Tom Ford fueled China; while Le Labo, La Mer and Estee Lauder gained share in Japan. Through the Beauty Reimagined framework, we are focused on expanding gains in these key markets while also reigniting share gains in many more markets, including the UK, Korea, and Mexico where we have a lot more work to do.

倩碧、The Ordinary 和 Bumble 推動了美國市場的成長。截至 3 月份，倩碧的市佔率已連續 11 個月成長。La Mer、雅詩蘭黛和湯姆·福特為中國市場注入了活力；而Le Labo、La Mer和雅詩蘭黛在日本的市場份額則有所增加。透過「重塑美麗」框架，我們專注於擴大這些關鍵市場的收益，同時重新點燃更多市場的份額增長，包括英國、韓國和墨西哥，在這些市場我們還有很多工作要做。

Next, let me turn to Beauty Reimagined and discuss our progress across the five action plan priorities, beginning with the first accelerate best-in-class consumer coverage. If the consumer and also retailer and provided, it is brand building, we are moving there without debate. We will not let evolving channel preference be a disrupter to us like it has been in the past.

接下來，讓我談談「重塑美麗」並討論我們在五個行動計劃重點方面取得的進展，首先是加速一流的消費者覆蓋。如果消費者和零售商也提供品牌建設，我們就會毫無爭議地朝這個方向發展。我們不會讓不斷變化的通路偏好像過去一樣對我們造成乾擾。

During the third quarter and through April, we moved quickly across brands and platforms. Let me give you a few examples. The Ordinary launched in the U.S. Amazon Premium Beauty Store and the UK TikTok Shop. The Ordinary also expanded in Thailand, China, and Turkey. In Southeast Asia, more brands launched on Shopee and TikTok Shop across various markets. As a result, in the fourth quarter, online organic sales grew mid-single digits driven by pure-play and third-party platforms.

在第三季和整個四月份，我們迅速跨品牌和平台發展。讓我給你舉幾個例子。The Ordinary 已在美國亞馬遜高級美妝商店和英國 TikTok 商店上線。The Ordinary 也在泰國、中國和土耳其擴張。在東南亞，更多品牌在各市場的 Shopee 和 TikTok Shop 上線。因此，在第四季度，在純平台和第三方平台的推動下，線上有機銷售額實現了中等個位數成長。

Across pure-players, our new brand storefront on the U.S. Amazon Premium Beauty Store propelled growth, along with JD, Notino, and Zalando. For third-party platforms, strong performance on Douyin and Tmall in China was further amplified by TikTok Shop and Shopee strength globally. We are incredibly pleased by the results we are delivering across Amazon Premium Beauty Stores in the U.S. and Canada as well as TikTok Shop in the U.S., UK, and Southeast Asia. We are exploring expansion with these and other retailers, so more to come with this action plan priority.

在純電商領域，我們在美國亞馬遜高級美容商店的新品牌店面與京東、Notino 和 Zalando 一起推動了成長。對於第三方平台而言，抖音和天貓在中國的強勁表現因 TikTok Shop 和 Shopee 在全球的強勁表現而進一步放大。我們對在美國和加拿大的亞馬遜高級美容商店以及美國、英國和東南亞的 TikTok 商店中取得的成果感到非常滿意。我們正在與這些零售商和其他零售商探討擴張計劃，因此將優先考慮此行動計劃。

Moving to our second action plan priority, create transformative innovation and innovate across price tiers to reach a wider audience. In the third quarter, we introduced innovations aimed to new consumer acquisition at both the lower and higher end of our brand portfolio. Among the innovations, Clinique New Moisture Surge Active Glow Serum, strategically priced to recruit at a time when consumers are more price sensitive. Demand of the new serum contributed to Clinique's significant share gain in the U.S. prestige serum subcategories.

轉向我們的第二個行動計劃重點，創造變革性創新並跨價格層級進行創新，以覆蓋更廣泛的受眾。第三季度，我們推出了旨在吸引品牌組合中低端和高端新消費者的創新。在這些創新產品中，倩碧全新水潤煥彩精華液採用策略性定價，以在消費者對價格更敏感的時期吸引消費者。新款精華液的需求推動倩碧在美國高階精華液子類別的份額大幅提升。

Estee Lauder New Double Wear Concealer realized strong uptake, benefiting from and further amplifying the popularity of its namesake foundation, such that the franchise delivered share gains across the facial subcategory of U.S. prestige makeup. MAC had a blockbuster commercial innovation with a Nudes Collection, bringing back fan-favorite shades in lip along with creating new ones and drove significant gain in U.S. prestige makeup lip subcategories.

雅詩蘭黛新款持久遮瑕膏銷量強勁，受益於其同名粉底液的受歡迎程度並進一步擴大了其受歡迎程度，使得該系列產品在美國高端化妝品的面部子類別中實現了份額增長。MAC 憑藉裸色系列 (Nudes Collection) 進行了轟動的商業創新，不僅重新推出了粉絲喜愛的唇色，還創造了新的唇色，並在美國高端彩妝唇部子類別中取得了顯著增長。

For our luxury brands, La Mer successfully expanded its nighttime portfolio with the New Night Recovery Concentrate to capitalize on its highly sought-after Rejuvenating Night Cream. Tom Ford's New Slim Lip Color Shine Lipstick, at entry luxury pricing, proved highly compelling to drive new consumer acquisition. This innovation by La Mer and Tom Ford fueled double-digit organic sales growth in China for each brand.

對於我們的奢侈品牌，La Mer 成功擴展了其夜間產品組合，推出了新款夜間修復精華液，以充分利用其備受追捧的煥活晚霜。湯姆福特 (Tom Ford) 的新款纖薄唇彩亮澤唇膏 (Slim Lip Color Shine Lipstick) 以入門級奢侈品定價，在吸引新消費者方面具有極強的吸引力。La Mer 和 Tom Ford 的這項創新推動了每個品牌在中國的有機銷售額均實現兩位數成長。

In the fourth quarter, we are working hard to keep the momentum going. Already out in China is newness from La Mer and Tom Ford. Building on the iconic success of La Mer's Treatment Lotion, the brand is launching the Balancing Treatment Lotion designed for oily skin, capturing the multi-generational consumer. Tom Ford Architecture Soft Matte Blurring Cushion Foundation achieved the top rank for new product launches in cushion foundation on Tmall in April.

第四季度，我們正在努力保持這一勢頭。La Mer 和 Tom Ford 的新品已在中國上市。在 La Mer 護理乳液取得標誌性成功的基礎上，該品牌推出了專為油性皮膚設計的平衡護理乳液，吸引了多代消費者。Tom Ford Architecture Soft Matte Blurring Cushion Foundation 榮獲天貓4月新品氣墊粉底液排行榜冠軍。

This month, Jo Malone London is introducing a body spray for Cypress & Grapevine to build upon the strong global momentum of its scents with men through new formats. MAC repositioned Studio Fix Powder Plus Foundation. We strategically lowered its suggested retail price in the U.S. and UK to get the hero product in more consumers' hands at a more competitive pricing with the indie brands. Too Faced New Ribbon Wrapped Lash Mascara pioneered an AI-driven marketing launch, delivering a typical six-month creative process in just 16 days. This is one example of many where we are hardwiring AI through the organization. The Ordinary is soon to launch UV Filter SPF 45 Serum as it reenters the high growth sun care subcategory of skincare.

本月，Jo Malone London 為 Cypress & Grapevine 推出了一款身體噴霧，希望透過新的形式鞏固其香水在男性市場中強勁的全球勢頭。MAC 重新定位了 Studio Fix Powder Plus Foundation。我們策略性地降低了在美國和英國的建議零售價，以便以比獨立品牌更具競爭力的價格將這款明星產品送到更多消費者手中。Too Faced New Ribbon Wrapped Lash Mascara 率先採用人工智慧驅動的行銷發布，僅用 16 天就完成了通常需要六個月的創意過程。這是我們透過組織硬連線人工智慧的眾多例子之一。The Ordinary 即將推出 UV Filter SPF 45 Serum，重新進入高成長的護膚品防曬子類別。

Our third action plan priority, boost consumer-facing investment to accelerate new consumer acquisition. We increased consumer-facing investment at a greater rate of growth in the third quarter versus the second quarter. We concentrated our incremental investment primarily in China and the U.S.

我們的第三個行動計畫重點在於增加面向消費者的投資以加速新消費者的取得。與第二季相比，我們在第三季增加了面向消費者的投資，增幅更大。我們的增量投資主要集中在中國和美國。

In China, this contributed to return to growth organically and at retail; while in the U.S., we deployed multiple strategies of which some worked better than others. We are taking our learnings and honing our strategies in the fourth quarter. And we continue to invest in our free-standing stores which drive brand equity and act as valuable media channels. We opened nearly 10 net new stores globally led by Le Labo in the U.S. and China. Le Labo leveraged this investment especially well with strong double-digit organic sales growth owing to both (inaudible) door growth and expansion.

在中國，這有助於恢復有機成長和零售成長；而在美國，我們部署了多種策略，其中一些策略比其他策略更有效。我們正在吸取教訓，並在第四季度完善我們的策略。我們將繼續投資獨立商店，以提升品牌資產並充當寶貴的媒體管道。我們在全球開設了近 10 家新店，其中以美國和中國的 Le Labo 最為活躍。Le Labo 充分利用了這項投資，得益於門市成長和擴張，其有機銷售額實現了強勁的兩位數成長。

Our fourth action plan priority, fuel sustainable growth through bold efficiencies. In the third quarter, we made significant progress in the PRGP which Akhil will describe. As of late April, as part of the PRGP's restructuring plan, we have approved initiatives to reduce over 2,600 net positions. With these actions, along with natural attrition, we are streamlining our middle management position by 20% versus February 2024. Likewise, through our new flatter and more streamlined executive team, we drove a 30% reduction in expense while also announcing it with new capabilities needed for the future.

我們的第四個行動計劃重點是透過大膽提高效率來推動永續成長。在第三季度，我們在 PRGP 方面取得了重大進展，Akhil 將對此進行描述。截至 4 月底，作為 PRGP 重組計劃的一部分，我們已批准減少 2,600 多個淨頭寸的舉措。透過這些行動以及自然減員，我們將在 2024 年 2 月的基礎上精簡中階管理職 20%。同樣，透過我們新的更扁平、更精簡的管理團隊，我們將費用減少了 30%，同時也宣布了未來所需的新功能。

For procurement and outsourcing, which were two new PRGP initiatives announced in February 2025, we are moving swiftly to transform our sourcing models to drive efficiencies of scale with top suppliers and to leverage external partners for select back office functions.

對於採購和外包（這是 2025 年 2 月宣布的兩項新的 PRGP 措施），我們正在迅速轉變我們的採購模式，以提高與頂級供應商的規模效率，並利用外部合作夥伴來選擇後台職能。

Our final action plan priority, reimagine the way we work. Our new executive team with reduced layers has been in place since April 1. Brand; our all-global strategy and innovation; while regions drive planning, scaling, and go-to market execution; and function enable both. Beginning of fiscal 2026, the P&L will be owned by the regions, creating a greater degree of accountability and simplification. Since February, we cascaded our Beauty Reimagined vision, strategized and aligned on the work ahead through global and regional town halls, in-person leadership team meetings, and market visits in the U.S., Western Europe, and Asia Pacific.

我們的最終行動計劃重點是重新構想我們的工作方式。我們的精簡管理層級的新管理團隊已於4月1日上任。品牌;我們的全球策略和創新；而區域則推動規劃、擴展和進入市場的執行；和功能均可啟用。從 2026 財年開始，損益表將由各地區負責，以實現更高程度的責任制和簡化。自二月以來，我們透過全球和地區市政廳會議、面對面的領導團隊會議以及在美國、西歐和亞太地區的市場訪問，逐步推行了「重塑美麗」的願景，並製定了未來工作的戰略並進行了協調。

Before I close, I want to speak briefly about our fiscal 2025 outlook. We expect the headwind we faced in our travel retail business in the third quarter to be even greater in the fourth quarter. Outside of travel retail, we expect organic sales decline to moderate further and retail sales growth to continue. One of the primary driver of the gap between organic and retail is weakened consumer sentiment in the U.S. and areas of Europe and prolonged weak consumer sentiment in China and Korea. This is resulting in tighter inventory management as retailers manage their working capital.

在結束之前，我想先簡單談談我們對 2025 財年的展望。我們預計，第三季旅遊零售業務面臨的阻力在第四季會更大。除了旅遊零售之外，我們預計有機銷售額下滑將進一步緩和，零售額將持續成長。有機食品和零售食品之間差距的主要原因之一是美國和歐洲地區消費者信心減弱，以及中國和韓國消費者信心長期低迷。由於零售商管理其營運資金，這導致庫存管理更加嚴格。

With the strategic resets of our travel retail business well under way to better reflect recent industry trends and market conditions and provided there is a meaningful resolution of the recently enacted tariffs to mitigate potential related negative impact, we are confident in our ability to return to sales growth in fiscal 2026.

我們的旅遊零售業務的策略調整正在順利進行，以更好地反映最近的行業趨勢和市場狀況，並且如果最近頒布的關稅得到有意義的解決，以減輕潛在的相關負面影響，我們有信心在 2026 財年恢復銷售成長。

Regarding the new tariffs, outsourcing and manufacturing are strategically regionalized around the world. Supply chain agility has always been and will remain a priority. This is a valuable asset, although there will still be pressures. Our supply chain footprint afford us decision-making flexibility, and we've been working since last November on how to best leverage our existing regional capabilities and multiple scenarios to partially cushion the direct impact of tariffs on profitability.

關於新關稅，外包和製造在全球範圍內策略性地區域化。供應鏈敏捷性一直是並將繼續成為優先事項。儘管仍然會有壓力，但這是一筆寶貴的財富。我們的供應鏈足跡為我們提供了決策彈性，自去年 11 月以來，我們一直在研究如何最好地利用我們現有的區域能力和多種方案來部分緩解關稅對獲利能力的直接影響。

We already increased North America production of U.S. demand from its already high level, and we also accelerated plans to increase volume levels at our relatively new manufacturing facility in Japan to service our business in Asia Pacific. Our plan in Japan is our ninth manufacturing campus globally, as we have five in North America and three in Europe.

我們已經提高了北美產量以滿足美國的需求，並且我們還加快了在日本相對較新的製造工廠增加產量的計劃，以服務我們在亞太地區的業務。我們計劃在日本建立全球第九個製造園區，目前在北美有五個，在歐洲有三個。

In closing, we are moving decisively and building momentum as we bring our Beauty Reimagined strategic vision to life across its five key priorities. To our employees around the world, thank you for making Beauty Reimagined a reality throughout your significant contribution.

最後，我們正在果斷行動，累積動力，透過五大關鍵重點將「重塑美麗」策略願景變為現實。對於我們在世界各地的員工，感謝你們透過自己的重大貢獻使「重塑美麗」成為現實。

I will now turn the call over to Akhil.

現在我將把電話轉給阿希爾。

Thank you, Stephane. And hello, everyone. Thank you for joining us today. We remain focused on long term value creation and are determined to better position the company for sustainable long-term growth, marginal improvement, and cash productivity. Encouragingly, we are starting to see progress on Beauty Reimagined priorities reflected in the share gains in some key markets, gross margin expansion, capital optimization, and the execution on a PRGP restructuring program to become a leaner and more agile company. Looking at the third quarter results, organic net sales declined 9% and was within the outlook range we gave in February. We delivered $0.65 EPS, exceeding our outlook. And operating margin was 11.4%.

謝謝你，史蒂芬。大家好。感謝您今天加入我們。我們始終專注於長期價值創造，並決心使公司更好地實現可持續的長期成長、邊際改善和現金生產力。令人鼓舞的是，我們開始看到 Beauty Reimagined 優先事項取得進展，體現在一些關鍵市場的份額增長、毛利率擴大、資本優化以及 PRGP 重組計劃的執行，從而成為一家更精簡、更敏捷的公司。從第三季的業績來看，有機淨銷售額下降了 9%，在我們二月給出的預期範圍內。我們實現了每股收益 0.65 美元，超出了我們的預期。營業利益率為11.4%。

Now let me take a few moments to highlight the progress we have made across key areas. Then I'll walk you through a full-year outlook. For results by product category and geographic region, please see our press release issued this morning.

現在，請允許我花一點時間來強調我們在關鍵領域的進展。然後我將向您介紹全年展望。若要了解按產品類別和地理區域劃分的結果，請參閱我們今天早上發布的新聞稿。

On the top line, we are encouraged by the share gains we saw in the U.S., China, and Japan this quarter. And we are committed to doing this more sustainably and broadly in more markets around the world. On margins, for the quarter, we again expanded our gross margin by 310 basis points compared to last year. This reflects net benefits from our PRGP and was driven by operational efficiencies, the reduction in excess, and obsolescence and benefits from our strategic pricing actions.

整體而言，本季美國、中國和日本的市佔率成長令我們感到鼓舞。我們致力於在全球更多市場以更永續、更廣泛的方式開展這項業務。就利潤率而言，本季我們的毛利率與去年相比再次擴大了 310 個基點。這反映了我們的 PRGP 帶來的淨收益，並受到營運效率、過剩和過時產品的減少以及我們的策略定價行動帶來的好處的推動。

Over the course of the fiscal year, we have pulled down production in response to our decline in sales volume. As a result, we triggered a requirement this quarter to recognize certain manufacturing costs in periods, rather than deferring them until the products are sold. You may recall that we took a similar in-period charge in Q3 of last year. The charge recognized last year was greater than the one we recognized this year, resulting in a year-over-year net favorable impact of 140 basis points.

在本財政年度，由於銷售量下降，我們減少了產量。因此，我們在本季度觸發了一項要求，即分期確認某些製造成本，而不是將其推遲到產品售出時。您可能還記得，我們​​在去年第三季也收取了類似的期間費用。去年確認的費用高於今年確認的費用，導致年比淨有利影響為 140 個基點。

Moving to operating expenses, OpEx increased 580 basis points as a percent of sales during the quarter. This reflects continued investments to fuel growth in key areas of the business. This resulted in a 480 basis points increase in consumer-facing investments. With our PRGP, we also made progress to reduce non-consumer-facing costs year-on-year, but this increased as a percent of sales due to our sales de-leverage. Operating income decreased 27% to $403 million and our operating margin contracted 270 basis points to 11.4%, compared to 14.1% last year. Our effective tax rate for the quarter was 30.8%, up from 30.5% last year. Diluted EPS declined to $0.65 or 33% from $0.97.

至於營運費用，本季營運支出佔銷售額的百分比增加了 580 個基點。這體現了對推動業務關鍵領域成長的持續投資。這導致面向消費者的投資增加了480個基點。透過 PRGP，我們也取得了進展，年比降低了非面向消費者的成本，但由於銷售去槓桿，這一成本佔銷售額的百分比有所增加。營業收入下降 27% 至 4.03 億美元，營業利潤率收縮 270 個基點至 11.4%，去年同期為 14.1%。本季我們的有效稅率為 30.8%，高於去年的 30.5%。稀釋每股收益從 0.97 美元下降至 0.65 美元，下降 33%。

Proceeding now to our PRGP restructuring program. As of March 31, we have recorded $498 million of cumulative charges under the program, primarily in employee-related costs. On the overall PRGP, we are executing with excellence and are making solid progress on initiatives that targeted pressure points in a business. The plan's net benefits drove gross margin expansion every quarter. We are building momentum and driving progress to reduce non-consumer-facing costs through OpEx efficiencies and our restructuring program. And given the heightened macro and geopolitical volatility, we are exploring additional PRGP savings to help mitigate some potential risks.

現在繼續我們的 PRGP 重組計劃。截至 3 月 31 日，我們已記錄該計畫下的累計費用 4.98 億美元，主要用於員工相關費用。就整體 PRGP 而言，我們執行得非常出色，並且在針對業務壓力點的舉措上取得了堅實的進展。該計劃的淨收益推動了每季的毛利率擴大。我們正在透過提高營運支出效率和重組計劃來累積動力並推動進步，以降低非面向消費者的成本。鑑於宏觀和地緣政治波動加劇，我們正在探索額外的 PRGP 儲蓄，以幫助減輕一些潛在風險。

Moving now to our cash generation. For the nine months, we generated $671 million in net cash flow from operating activities, compared to $1.471 billion last year. This decrease is due to the decrease in earnings adjusted for non-cash items, greater restructuring payments, and an unfavorable change in operating assets and liabilities. This includes the fact that last year, we made a very significant year-on-year reduction in our inventory which drove very strong fee FFO in the base period. We invested $395 million in capital expenditure, down 44% compared to last year. The reduction was primarily driven by the prior-year payments relating to the manufacturing facility in Japan. It also reflects a very strong focus on optimizing capital expenditures this year as we are determined to improve our free cash flow.

現在轉向我們的現金產生。前九個月，我們從經營活動中獲得的淨現金流為 6.71 億美元，而去年同期為 14.71 億美元。下降的原因是非現金項目調整後的收益減少、重組支付增加、經營資產和負債發生不利變化。其中包括，去年我們的庫存同比大幅減少，這推動了基期內費用 FFO 的強勁成長。我們的資本支出為 3.95 億美元，比去年下降 44%。減少的主要原因是去年與日本製造工廠相關的付款。這也反映出我們今年非常注重優化資本支出，因為我們決心改善自由現金流。

Before I turn to outlook, let me first address uncertainty around evolving trade policies and tariffs that is adding volatility to an already complex global landscape. As you know, we have been investing in the regionalization of our supply chain for the last several years. And we are using this new flexibility to help mitigate some of the impacts of the higher tariffs.

在談到展望之前，我首先想談談圍繞貿易政策和關稅變化的不確定性，這些不確定性為本已複雜的全球格局增添了波動性。如您所知，過去幾年我們一直在投資供應鏈的區域化。我們正在利用這種新的靈活性來幫助減輕提高關稅帶來的一些影響。

To provide some context on our exposure, about 75% of what we sell in the U.S. is either sourced from our manufacturing plants in the U.S. and Canada or covered under existing trade agreements. Roughly 25% of what we sell in China is currently sourced from our manufacturing plants in the U.S., but we have strategies to potentially reduce that to below 10%, including leveraging products made in our manufacturing plants in both Japan and Europe. Similarly, in EMEA, about 25% is sourced from our manufacturing plants in the U.S.

為了提供一些我們的風險敞口背景信息，我們在美國銷售的產品中約有 75% 要么來自我們在美國和加拿大的製造工廠，要么受到現有貿易協定的保護。目前，我們在中國銷售的產品中約有 25% 來自美國的製造廠，但我們有策略將這一比例降至 10% 以下，包括利用我們在日本和歐洲的製造廠生產的產品。同樣，在歐洲、中東和非洲地區，約有 25% 來自我們位於美國的製造工廠。

As Stefaphe mentioned, our task force is closely tracking developments and evaluating a range of scenarios to help mitigate some of the impacts of tariffs. Scenarios include optimizing a regionalized and third-party manufacturing networks, leveraging available trade programs, and executing further mitigation strategies over the next 12 months, including expanding our local sourcing.

正如 Stefaphe 所提到的，我們的工作小組正在密切追蹤事態發展並評估一系列情景，以幫助減輕關稅的一些影響。方案包括優化區域化和第三方製造網路、利用可用的貿易計劃以及在未來 12 個月內執行進一步的緩解策略，包括擴大我們的本地採購。

Based on what we know today and given our deferral period for certain manufacturing costs, we do not expect a material impact of fiscal '25 profitability. However, unless meaningful resolution of trade negotiations is achieved, we do anticipate the high rate of tariffs to have a material impact in fiscal '26.

根據我們目前所掌握的情況，並考慮到某些製造成本的延期，我們預計這不會對 25 財年的獲利能力產生重大影響。然而，除非貿易談判達成有意義的解決方案，否則我們預計高關稅將對 26 財年產生重大影響。

We are also exploring additional PRGP savings and strategic pricing to help further mitigate some of these impacts. We are working to give you a comprehensive update on our tariff mitigation plans during our August earnings call. Given that context, let me walk you through our specific outlook for the full year.

我們也正在探索額外的 PRGP 儲蓄和策略定價，以幫助進一步減輕其中的一些影響。我們將在八月的收益電話會議上向您全面介紹我們的關稅減免計劃。有鑑於此背景，讓我向您介紹我們對全年的具體展望。

We want to acknowledge the risks associated with the geopolitical landscape, specifically tariffs and the uncertainty of their impact on consumer sentiment. If conditions worsen, particularly regarding Chinese consumer sentiment and the potential pressure on sales during the 6/18 mid-year shopping festival, the negative impact on our financial performance could exceed what we have factored into our current assumptions. In that case, achieving the outlook we are providing today may not be possible.

我們要承認與地緣政治格局相關的風險，特別是關稅及其對消費者情緒影響的不確定性。如果情況惡化，特別是中國消費者信心和 6/18 年中購物節期間銷售可能面臨的壓力，對我們財務表現的負面影響可能會超過我們目前假設的水平。在這種情況下，實現我們今天所提供的前景可能無法實現。

In February, we indicated that growth in our travel retail business would decline strong double-digits in the second half of the fiscal year, and that we would maintain appropriate trade inventory levels. Retail softness has persisted since then, and we expect a steeper decline in net sales in the fourth quarter, compared to the 28% we saw in the third. However, despite this pressure, we continue to align shipments with demand and still expect to end the year at appropriate inventory levels.

今年 2 月，我們曾表示，本財年下半年，旅遊零售業務的成長將出現強勁的兩位數下降，並且我們將維持適當的貿易庫存水準。自那時起，零售業一直處於疲軟狀態，我們預計第四季淨銷售額將出現更大幅度的下降，而第三季的降幅為 28%。然而，儘管面臨這種壓力，我們仍繼續根據需求調整出貨量，並仍預計今年年底的庫存水準將達到適當。

Our assumptions for the full year are: Total organic net sales to decrease in the range between 9% to 8% compared to last year which reflects the continued softness in a global travel retail business as well as ongoing pressure in Asia Pacific despite the recent improvements we saw in oul Mainland China third quarter results, currency translation is not expected to materially impact reported net sales; gross margin of approximately 73.5%; an effective tax rate of 38% compared to 31% last year; and an EPS of $1.30 to $1.55, currency translation is expected to dilute EPS by $0.03.

我們對全年的假設是：總有機淨銷售額與去年相比將下降 9% 至 8%，這反映了全球旅遊零售業務的持續疲軟以及亞太地區持續的壓力，儘管我們看到中國大陸第三季度業績有所改善，但預計貨幣換算不會對報告的淨銷售額產生重大影響；毛利率約為73.5%；有效稅率為 38%，而去年為 31%；每股收益為 1.30 美元至 1.55美元，預計貨幣換算將使每股收益稀釋 0.03 美元。

In closing, we are proud of the meaningful progress we are making in executing our strategic priorities and remain confident in our Beauty Reimagined vision to restore sustainable sales growth and to achieve a solid double-digit adjusted operating margin over the next few years.

最後，我們為在執行策略重點方面取得的重大進展感到自豪，並對我們的「重塑美麗」願景充滿信心，相信我們將在未來幾年恢復可持續的銷售增長，並實現穩健的兩位數調整後營業利潤率。

To our talented employees around the world, thank you for your leadership and dedication. Together, we are better positioned to become the best consumer-centric company ash a leaner, more agile business.

對於我們在世界各地的優秀員工，感謝你們的領導和奉獻精神。透過共同努力，我們將更好地成為以消費者為中心的最佳公司，並擁有更精簡、更敏捷的業務。

That concludes the prepared remarks. I'll now turn it over to the operator to begin the Q&A session.

準備好的發言到此結束。現在我將把時間交給操作員，開始問答環節。

(Operator Instructions)

（操作員指示）

Steve Powers, Deutsche Bank.

德意志銀行的史蒂夫·鮑爾斯。

Thank you very much. Good morning, everybody, Stephane. I think this question's probably targeted for Akhil, but for maybe for both of you just, picking up on the commentary, late in your comments, that you were targeting trade inventories exiting fiscal '25 to more or less align with consumer takeaway. That's obviously been an ongoing project and it's become increasingly difficult. So can you talk about whether you expect that to be true kind of across all categories and geographies or whether you see outliers? And then also kind of frame the risks around that outlook. You mentioned the [618] variable, but just in general, your level of confidence that you can actually achieve that alignment exiting the fiscal year. Thank you.

非常感謝。大家早安，史蒂芬。我認為這個問題可能是針對阿基爾 (Akhil) 的，但也許針對你們兩位，只是在評論的後期繼續評論，即你們的目標是使 25 財年的貿易庫存或多或少與消費者的外賣保持一致。這顯然是一個持續進行的項目，而且變得越來越困難。那麼，您能否談談您是否認為這種情況在所有類別和地區都是如此，或者您是否看到了異常值？然後圍繞這一前景來界定風險。您提到了[618]變量，但總的來說，您對在財政年度結束時真正實現這種一致性的信心程度。謝謝。

Thank you, Steve. Overall, we have made significant progress, as we communicated in the last quarter as well. Specifically, our biggest challenge was in travel retail, and we have significantly improved our position there. We exited last fiscal at the elevated levels of inventory, which by December, we had reduced significantly. And Stepan and I committed that we will maintain those levels and continue to work upon that. So frankly, on travel retail, we are in a much stronger position. Now, given the retail ups and downs, this is a constant monitoring which we are doing on a weekly, monthly basis.

謝謝你，史蒂夫。總體而言，我們已經取得了重大進展，正如我們在上個季度所傳達的那樣。具體來說，我們面臨的最大挑戰是在旅遊零售領域，而我們已經大幅提升了在該領域的地位。上個財年結束時，我們的庫存水準較高，但到了 12 月份，我們已大幅降低了庫存。史蒂芬和我承諾，我們將保持這些水平並繼續努力。因此坦白說，在旅遊零售方面，我們處於更有利的地位。現在，考慮到零售業的起伏，我們每週、每月都會進行持續監控。

Secondly, around the world, we are seeing retailers tightening their inventory, so we are adjusting accordingly, specifically in North America with some of the retailers having challenges. And that is reflected in our outlook. So I would say that trade inventory is a challenge. A large part of it is significantly behind us, and in every guidance we are giving, we're trying to include the best of our knowledge and shipping to retail.

其次，我們看到世界各地的零售商都在收緊庫存，因此我們也正在做出相應的調整，特別是在北美，一些零售商面臨挑戰。這反映在我們的觀點上。所以我想說貿易庫存是一個挑戰。其中很大一部分已經遠遠落後於我們，在我們提供的每一個指導中，我們都試圖將我們最好的知識和運輸到零售業結合起來。

The other point I would make on [618] is that look, we have given a broader range for quarter four for a reason given the volatility we are seeing and it's prudent. And it is very difficult to make a specific call on day-to-day on what the volatility will bring. However, we feel that based on what we see today, our guidance should reflect what we are seeing on the ground. We saw very strong results in Q3, specifically in China, which Stephane covered in detail in his commentary. And we believe that even as we are seeing April come through, we are seeing strength in our business there. So while we have given a broader range, it recognizes everything we see today. At the same time, it's hard to comment. Stephane, would you like to add?

關於[618]我想說的另一點是，考慮到我們所看到的波動性，我們給出了第四季度的更廣泛的範圍，這是謹慎的。而且，很難每天具體判斷波動會帶來什麼後果。然而，我們認為，根據我們今天所看到的情況，我們的指導應該反映出我們實際看到的情況。我們在第三季看到了非常強勁的業績，特別是在中國，Stephane 在他的評論中對此進行了詳細介紹。我們相信，即使到了四月份，我們的業務仍將保持強勁勢頭。因此，雖然我們給出了更廣泛的範圍，但它承認我們今天看到的一切。但同時，評論也很困難。史蒂芬，你想補充一下嗎？

I think you said it all. Also, Steve, I think one of the things that is important to take into consideration is the significant and the gradual improvement of our retail sales quarter-over-quarter when you exclude travel retail but allows us also to deplete significant level of inventory and to rebalance it to the level that we've committed to be. And therefore, like Akhil said, that we are confident that we just, obviously, what we are guiding today is always our ambition to just go (inaudible) to deliver the number and more importantly, to be able to realign retail next year and to resume with growth, as I mentioned in my opening remarks.

我想你已經說完了。此外，史蒂夫，我認為需要考慮的重要事項之一是，如果排除旅遊零售，我們的零售額將逐季顯著且逐步改善，但這也讓我們能夠消耗大量庫存，並將其重新平衡到我們承諾的水平。因此，就像阿基爾所說的那樣，我們有信心，顯然，我們今天所指導的始終是我們的雄心壯志，即（聽不清）實現目標，更重要的是，能夠在明年重新調整零售業並恢復增長，正如我在開場白中提到的那樣。

Very good. Thank you both. Appreciate it.

非常好。謝謝你們兩位。非常感謝。

Bonnie Herzog, Goldman Sachs.

高盛的邦妮·赫爾佐格。

All right. Thank you. Good morning, everyone. I had a question on your FY26 planning assumptions. While I recognize it's pretty early to talk about detailed guidance, I was hoping you could just talk through a little further some of the moving pieces as we start to think about modeling the year and I'm thinking about in the context of retailer inventory, destocking headwinds that, as you just touched on, are weighing on the second half trends this year, and then think about trends in China, broader concerns around U.S. consumption. I guess, ultimately, do you see end market trends improving relative to the second half of this fiscal year? Or is it reasonable to assume similar trends persist, even as we think about your return to growth in the year? Thank you.

好的。謝謝。大家早安。我對您的 FY26 規劃假設有疑問。雖然我知道現在談論詳細指導還為時過早，但我希望您能進一步談談一些變動因素，因為我們開始考慮對今年進行建模，我正在考慮零售商庫存、去庫存逆風，正如您剛才提到的，這些因素正在影響今年下半年的趨勢，然後考慮中國的趨勢以及對美國消費的更廣泛擔憂。我想，最終，您是否認為終端市場趨勢相對於本財年下半年有所改善？或者，即使我們考慮今年恢復成長，我們是否可以合理地假設類似的趨勢將持續下去？謝謝。

Thank you, Bonnie, for the question. So let me take it from the top because, as you see, it's a pretty large question because it's what we see in the market and what we see on our performance. I think just let me start with, again, incurring the fact that we are really confident in returning to positive growth territory in fiscal '26, and that's what we are committing. And we are saying for several reasons. The first thing is that we're seeing significant market share gain in key markets where we decided to focus. The U.S. China, Japan, obviously, we've continued great success. And we are gaining share not on few brands, we are gaining share on multiple brands in this market, in the U.S., but also in China and in Japan. So we are aiming, and in this market, we are returning into positive territory. That's really the most important thing.

謝謝邦妮提出的問題。所以讓我從頭開始回答，因為如你所見，這是一個相當大的問題，因為這是我們在市場上看到的，也是我們在我們的表現中看到的。我想先讓我再次強調，我們確實有信心在 26 財年恢復正成長，這也是我們的承諾。我們這樣說有幾個原因。首先，我們在我們決定關注的關鍵市場中看到了顯著的市佔率成長。美國、中國、日本，顯然，我們都取得了巨大的成功。而且我們不僅在少數品牌上獲得份額，而且在美國、中國和日本的市場上還在多個品牌上獲得份額。因此，我們的目標是，在這個市場中，我們正在回歸積極的領域。這確實是最重要的事。

In net sales, we're having sequential improvement from Q2 to Q3. Travel retail has been de-risked. I mentioned in my opening remark that travel retail is now in the mid to low teens which is basically taking 10 points off the mix of business that travel retail represented to our high period. Think about it. This is really taking a lot of volatility out of our business. And this is one thing that we've done strategically in the course of like the past few months to just make sure that we can manage accordingly and really reflecting the consumer demand.

在淨銷售額方面，我們從第二季到第三季連續改善。旅遊零售業已消除風險。我在開場白中提到，旅遊零售業現在處於中低檔，基本上比旅遊零售業在高峰時期的業務組合減少了 10 個百分點。想一想。這確實為我們的業務帶來了很大的波動。這是我們在過去幾個月中採取的策略措施之一，目的只是為了確保我們能夠採取相應的管理措施並真正反映消費者的需求。

I would say also very importantly, the way we are driving the PRGP, you heard Akhil and I in our prepared remarks, we're making a lot of progress from the gross margin improvement, from a reduction of our employee workforce, especially in the middle management, we are accelerating our outsourcing project, we are accelerating our procurement projects. So all of that is just create a lot of efficiency in the model.

我還想說，非常重要的是，我們推動 PRGP 的方式，正如 Akhil 和我在我們的準備好的發言中所聽到的，我們在毛利率提高、員工隊伍減少（特別是中層管理人員）方面取得了很大進展，我們正在加快我們的外包項目，我們正在加快我們的採購項目。所以所有這些都只是在模型中創造了很多效率。

And then I would say, the tariff, obviously, is something that we are monitoring very carefully and we are expecting meaningful resolution. But as a team, we are taking really a lot of proactive decision to just make sure that we are mitigating as much as we can. And obviously, we don't know what yet the mitigation will be from the outside world, but we are taking the proactive action of what we can control. And we believe at this point, we have a lot of great action in place, and we will continue through the PRGP to look at additional efficiencies.

然後我想說，關稅顯然是我們正在密切關注的事情，我們期待得到有意義的解決方案。但作為一個團隊，我們正在做出很多積極的決定，以確保我們盡可能減輕影響。顯然，我們還不知道外界將採取何種緩解措施，但我們正在採取我們能夠控制的主動行動。我們相信，目前我們已經採取了很多出色的行動，我們將繼續透過 PRGP 來尋求額外的效率。

And then the most important thing I would say, Bonnie, is through Beauty Reimagined, I hope in my prepared remarks, you saw how quickly we are moving to new channels, how we are accelerating innovation, how we're making sure that we are investing in consumer-facing in a much more efficient way. And our team is really looking at everything from a media standpoint on how we make sure that we go for the highest ROI, the best efficiency, and then we have, just obviously, we are meeting the consumer and recruiting new consumers in the best way.

然後我想說的最重要的事情是，邦妮，透過“重塑美麗”，我希望在我準備好的發言中，你能看到我們是如何快速地轉向新渠道，我們如何加速創新，我們如何確保以更有效的方式投資於面向消費者的領域。我們的團隊確實從媒體的角度審視一切，以確保我們獲得最高的投資回報率和最佳效率，然後我們顯然會以最佳方式與消費者見面並招募新消費者。

I think as a result, we see all around the world the desirability on our brand being very strong in China, in the U.S., in Japan, in many markets. We know that we have some progress to make, like I call out, in the UK and in many of our emerging markets. And we are laser focused on what we are learning and what is working in this key market to take some of the recipes and to just apply it everywhere around the world. So with all of these elements in place, I would say we are really confident.

我認為，結果是，我們看到世界各地的人們對我們的品牌的渴望，在中國、美國、日本等許多市場都很強烈。我們知道，正如我所說，在英國和許多新興市場，我們還需要取得一些進展。我們全神貫注於我們正在學習的知識以及在這個關鍵市場中行之有效的方法，以採用一些方法並將其應用到世界各地。因此，有了所有這些因素，我想說我們真的非常有信心。

Now there are a certain number of things that are not under our control. The consumer confidence is continuing to be subdued in China, is actually reduced in the U.S., and in some areas of Europe. So we are monitoring very carefully what are the outside conditions versus what we can do. But showing in this moment in time, despite consumer subdued confidence in China and reduction in the U.S., for instance, our brands are moving in the right directions.

現在有一些事情是我們無法控制的。中國的消費者信心持續低迷，美國和歐洲部分地區的消費者信心實際上也在下降。因此，我們正在非常仔細地監控外部條件以及我們能做什麼。但目前來看，儘管中國消費者信心低迷，美國消費者信心下降，但我們的品牌正朝著正確的方向發展。

You saw things like Clinique 11th quarter of market share gains in the U.S. In China, we have Estee Lauder, La Mer, Clinique, Le Labo, and I can go on, brands that are gaining market share. In China in the last quarter, we've gained market share in all four categories. And that's been a long time that we haven't been in this position. In the U.S., we've gained market share in three of the four categories in the last quarter. So all of these things are the elements that gives us confidence that we can return to growth next year. Obviously, we are monitoring what is happening outside and we're putting mitigation plan in place as we go.

您會看到倩碧在美國的市佔率在第 11 季有所成長。在中國，我們有雅詩蘭黛、海藍之謎、倩碧、Le Labo 等等，這些品牌的市佔率都在不斷成長。上個季度，我們在中國四個類別的市佔率均有所成長。我們已經很久沒有處於這樣的境地了。在美國，上個季度我們在四個類別中的三個類別中都獲得了市場份額。所有這些都讓我們有信心明年能夠恢復成長。顯然，我們正在監視外面發生的情況，並正在製定緩解計劃。

Okay. Thank you.

好的。謝謝。

Lauren Lieberman, Barclays.

巴克萊銀行的勞倫·利伯曼。

Great. Thanks. Good morning. I know you talked that that you're assuming some significant change in the current tariff regime, but I thought it'd be helpful just to get a little bit more perspective on first, when you think you can be below 10% of products sourced from China in the U.S. I know, of course, you've got many plants around the world, but just curious the timeline to get there. And the other thing was the other 25% of U.S., where that's sourced from? Is 75% to source in the U.S., Canada, or where (inaudible) where's the other 25% from? And then the plan to get the China sourced from U.S. to some 10% when that's expected to be the case? Thanks.

偉大的。謝謝。早安.我知道您說過，您假設當前的關稅制度會發生一些重大變化，但我認為首先了解更多情況會很有幫助，當您認為美國從中國採購的產品比例可以低於 10% 時。我當然知道，你們在世界各地有很多工廠，但我好奇實現這一目標的時間表。另一件事是美國另外 25% 的石油來自哪裡？75% 的原料來自美國、加拿大，還是（聽不清楚）另外 25% 的原料來自哪裡？那麼，當預期實現時，計劃將中國從美國採購的比例提高到 10% 左右嗎？謝謝。

Thank you, Lauren. Good to hear from you. So from China, we are confident by the end of the fiscal year, this fiscal year, we will be able to just be around the 10% coming from the U.S. going to China. And obviously, this will be the 90% plus will come from our ability to just accelerate the output from our newly-opened factory in Japan, Sakura, which is up and running. We are obviously continuing to just have products coming from Europe and from Canada which, obviously, will be servicing China, for instance, when you have a product from The Ordinary.

謝謝你，勞倫。很高興收到你的來信。因此，我們有信心，到本財年末，從美國到中國的銷售額將達到 10% 左右。顯然，這 90% 以上的成長將來自於我們加速提高日本新開工廠 Sakura 的產量的能力，目前已經投入運作。顯然，我們將繼續提供來自歐洲和加拿大的產品，這些產品顯然將為中國提供服務，例如，當您有來自 The Ordinary 的產品時。

And when it comes to the U.S., the majority of the 25% are really coming from Europe, so it's not that have anything coming from -- If the question is do we have anything that is coming from China to the U.S., it's very minimal. It's just not material in basically the total. So in that sense, we believe that we are in a position today, thanks to these nine campuses that we have around the world, to mitigate the best we can. Obviously, I'm talking here about like finished goods. We have a certain number of things that we need to work from a component and raw materials that is different. But from a finished goods standpoint, we are in a place today and by the end of the fiscal year where we can mitigate a large part of these tariffs.

而說到美國，這 25% 中的大多數實際上來自歐洲，所以並不是說有任何東西來自——如果問題是我們是否有任何東西從中國運往美國，那麼數量非常少。從總體上看，這並不重要。因此從這個意義上來說，我們相信，由於我們在世界各地擁有的九個校區，我們今天有能力盡最大努力緩解這個問題。顯然，我在這裡談論的是成品。我們需要利用不同的組件和原料來生產一定數量的東西。但從成品的角度來看，我們今天以及到本財政年度結束時可以減輕大部分關稅。

To give you a sense, Lauren, since we started this task force in November from when it was announced, to where we are today, we've mitigated an excess of 40% of the initial impacts of the tariff. And we continue to work through it. This task force is not going to go away. Obviously, there's a certain number of tariffs that we don't know where they will end up. And we are monitoring that daily and we are very diligent with the team just doing the right thing on that front. I don't know, Akhil, if you --

勞倫，為了讓你了解一下，自從我們去年 11 月宣布成立這個工作小組以來，到今天為止，我們已經減輕了超過 40% 的關稅初始影響。我們將繼續努力解決這個問題。這個工作組不會消失。顯然，我們不知道一定數量的關稅最終會落到哪裡。我們每天都在監控這一點，我們非常勤勉地指導團隊在這方面做正確的事。我不知道，阿基爾，如果你--

The only thing I would add, Stephane, is that -- hello Lauren, our value that would be tariffable in this situation, as Stephane explained, would be quite low because of our network. We are having exposure, probably in the industry, one of the lowest cross-border. Of course, the high rate of tariffs creates the exposure and with all the trade talks going on, we do -- like everybody else, we are hopeful that there should be some resolution from that high level rates that we are seeing right now.

我唯一想補充的是，史蒂芬，你好，勞倫，正如史蒂芬所解釋的，由於我們的網絡，在這種情況下我們的應稅價值會相當低。我們的跨國曝光度可能是業內最低的之一。當然，高關稅會造成風險，隨著所有貿易談判的進行，我們和其他人一樣，希望目前看到的高關稅能夠解決。

But in terms of minimizing the flow and putting it in the right places so that they are regionalized, we are actively working on that. And we've been working on that for four or five months as our supply chain team has been looking at multiple scenarios, including all the way to component entry. So not only the finished goods flow, we are looking -- we have multiple newer suppliers for many of our key products. So we can definitely do that in addition to what Stephane explained. So we remain confident in what we can control and of course, are hoping for some continued resolutions as we are hearing more positively.

但在盡量減少流量並將其放置在正確的位置以實現區域化方面，我們正在積極努力。我們已經為此工作了四、五個月，我們的供應鏈團隊一直在研究多種方案，包括整個零件進口過程。因此，我們不僅正在尋找成品流，我們還在尋找——我們的許多關鍵產品都有多個較新的供應商。因此，除了 Stephane 所解釋的內容之外，我們肯定還可以做到這一點。因此，我們對自己能夠控制的事情仍然充滿信心，當然，隨著我們聽到更多正面的消息，我們也希望能夠繼續得到解決。

Just one additional thing, Lauren, also what is important is with the work that we are doing on the PRGP of improving the gross margin, that gives us also more additional pricing power. So we also can and put in place some mitigation through not only what we are doing from an inventory sourcing standpoint and where the finished goods are coming in our manufacturing network, as you can tell, it is very agile and diverse today to serve this moment in time, but pricing power remains something that is under our control thanks to all the work that we've done on gross margin. And then, we are looking for additional PRGP savings to obviously mitigate whatever over-exposure that we could have.

另外，勞倫，同樣重要的是，我們在 PRGP 上所做的工作提高了毛利率，這也為我們提供了更多的額外定價能力。因此，我們不僅可以透過從庫存採購的角度以及成品進入我們的製造網絡的角度採取一些緩解措施，正如您所看到的，今天它非常靈活和多樣化，可以及時服務，但由於我們在毛利率方面所做的所有工作，定價權仍然在我們的控制之下。然後，我們正在尋求額外的 PRGP 儲蓄，以明顯減輕我們可能遇到的過度風險。

Great. Thanks so much.

偉大的。非常感謝。

Filippo Falomi, Citi.

花旗銀行的 Filippo Falomi。

Good morning, everyone. I wanted to ask about the PRGP and broadly, what are your expectations for savings for fiscal '25 relative to your total program? And then as you think about fiscal '26, Stephane, you mentioned that you're evaluating other PRGP plans. So give us a little bit of a sense of what other areas you will be looking in terms of potential savings. And then from our investment standpoint, can you give us a sense of how much of their investment is expected on a net basis for the savings? Thank you.

大家早安。我想問 PRGP 的情況，總體來說，相對於整個計劃，您對 25 財年的節省預期是多少？然後，當您考慮 26 財年時，Stephane，您提到您正在評估其他 PRGP 計劃。那麼請讓我們稍微了解一下您在潛在節省方面還關注哪些其他領域。然後從我們的投資角度來看，您能否告訴我們，預計他們的投資淨額將有多少用於儲蓄？謝謝。

Hi Filippo. So Akhil and I will tag team on this one, so we can just add a little bit more flavor. So obviously, like I said and like we both said in our prepared remark, we are very pleased, obviously, of the progress that we are making in the PRGP. If you remember, there were two phase to the PRGP, what we so-called internally the PRGP 1.0 and obviously, the expansion of the PRGP. On the PRGP 1.0, we are very confident that we are on target for the year that is both, you've seen fourth quarter -- sequential quarter improvement on gross margin like 300 basis points. And Akhil mentioned the target of 73.5% on our gross margin which really positioned us into the right place. And we will continue, obviously, to do some improvement being mindful of what could happen with the tariffs as we just discussed with Lauren a few minutes ago.

你好，菲利波。因此，阿希爾和我將在這件事上組隊，這樣我們就可以增加一點趣味。因此，顯然，就像我說過的，就像我們在準備好的發言中所說的那樣，我們對 PRGP 所取得的進展感到非常高興。如果你還記得的話，PRGP 分成兩個階段，我們內部稱之為 PRGP 1.0，顯然還有 PRGP 的擴充。對於 PRGP 1.0，我們非常有信心能夠實現今年的目標，正如您所見，第四季度毛利率比上一季提高了 300 個基點。Akhil 提到我們的毛利率目標是 73.5%，這確實使我們處於正確的位置。顯然，我們將繼續做出一些改進，同時注意關稅可能發生的情況，正如我們幾分鐘前與勞倫討論的那樣。

And also from an employee's standpoint, we are de-layering significantly the organization. I mentioned it in my remarks, over 2,600 positions have been eliminated and will be, at least, 85% of this position will be leaving the building by the end of the fiscal year and obviously, we continue to do so. Now, I think from fiscal '25, we are really on target delivering our internal objectives and what we've committed to you from a PRGP standpoint.

而且從員工的角度來看，我們正在大幅減少組織層級。我在發言中提到過，超過 2,600 個職位已被裁減，到本財政年度結束，至少 85% 的職位將離開公司，顯然，我們將繼續這樣做。現在，我認為從 25 財年開始，我們真正有望實現我們的內部目標以及從 PRGP 的角度對您的承諾。

Now when it comes to the expansion of the PRGP that will go into fiscal '26 and beyond to create a lot more efficiency, we are laser focused in accelerating all the work that we are doing from outsourcing. And we will come to you most likely at the August earnings call to just give you more detail of how we are doing it. But today, we're looking with like key potential external partners on how we are looking at different services, from HR services, to financial services, to marketing services, and I could name them all. So there's no stone that we are leaving unturned when it comes to how we can operate the company in a much more agile and leaner way.

現在，談到 PRGP 的擴展，它將在 26 財年及以後繼續發揮作用，以創造更高的效率，我們正集中精力加速透過外包完成的所有工作。我們很可能會在 8 月的收益電話會議上與您聯繫，向您詳細介紹我們的工作進度。但今天，我們正在與主要的潛在外部合作夥伴一起研究如何看待不同的服務，從人力資源服務到金融服務，再到行銷服務，我可以一一列舉。因此，當談到如何以更靈活、更精簡的方式經營公司時，我們會盡一切努力。

And also, we've launched a major procurement project that will give us a lot more efficiencies, but also cost savings from anything that will impact our direct and indirect materials through the organization. So in that sense, I'm really confident that we are in the right place to deliver the 1.0 and we have all the tools, all the partnership, and all the team that is really laser focused on accelerating it. The end result, Filippo, is the same one, which is to deliver a solid double-digit operating margin in the next few years. And we'll do it. This is our commitment. I said it in the last call. I reiterate it now this time today again because of everything that we are putting in place.

此外，我們還啟動了一個重大採購項目，這將大大提高我們的效率，同時節省任何會影響我們組織直接和間接材料的成本。因此從這個意義上來說，我非常有信心我們處於正確的位置來發布 1.0 版本，並且我們擁有所有工具、所有合作夥伴關係以及所有真正專注於加速這一進程的團隊。最終的結果是，Filippo 在未來幾年內能達到穩定的兩位數營業利潤率。我們會做到的。這是我們的承諾。我在上次通話中說過。由於我們正在實施的一切措施，我今天此時再次重申這一點。

Thank you, Stephane. Filippo, hello there. And two things, right? We are really leveraging this to fuel Beauty Reimagined, which is the growth agenda, and the solid double-digit margin. So we are really thinking all of those things in those terms. Gross margin, we have already seen progress and we believe there is more room to go there and that's our goal based on the zero waste that Stephane talked about and what we have already demonstrated this year.

謝謝你，史蒂芬。菲利波，你好。還有兩件事，對吧？我們確實利用這一點來推動「重塑美麗」計劃，這是成長議程，並且實現了穩固的兩位數利潤率。所以我們確實從這些角度考慮所有這些事情。在毛利率方面，我們已經看到了進步，我們相信還有更大的提升空間，這是我們基於 Stephane 談到的零浪費以及我們今年已經展示的成果所設定的目標。

Then, of course, the next big area is everything else other than COGS, which is OpEx, which you can do the math, that if we are at about 8% margin with 73% gross margin, we do have a significant amount of OpEx where the optimization is being worked on. The reason you are not seeing enough movement there because even though we are dropping the dollars year-on-year, are seeing sales deleverage. And as Stephane pointed out that as we return to growth, barring some of the tariff context we talked, we should start to see, with dollars already dropping on those OpEx, a significant movement on OpEx margins.

當然，下一個重要領域是除了 COGS 之外的其他一切，即營運支出，你可以算一下，如果我們的利潤率約為 8%，毛利率為 73%，那麼我們確實有大量的營運支出，正在進行優化。您之所以沒有看到足夠的變動，是因為儘管我們的美元金額逐年下降，但銷售額卻在去槓桿。正如史蒂芬所指出的，隨著我們恢復成長，除了我們談到的一些關稅背景外，我們應該開始看到，隨著營運支出的美元已經下降，營運支出利潤率將出現顯著變動。

So with the program touching all the way from discounts, just as a reminder on the sales; gross margin on operational excellence, which we are driving, which you've seen the results; and all employee costs we had doubled the restructuring, so we had communicated extra restructuring benefits of $350 million to $500 million when we communicated to you last time; and significant work on procurement for non-employee costs, so between all of that, we are committed to our solid double-digit margin progression. And as you can see, there is room both in gross margin and OpEx, and with a little bit of sales growth that we see, we should start to see this work translate in that direction in a very meaningful way.

因此，該計劃從折扣開始，一直到銷售的提醒；我們正在推動卓越運營，毛利率也因此提高，您已經看到了成果；並且所有員工成本我們都因重組而增加了一倍，因此我們上次與您溝通時已經告知了3.5億至5億美元的額外重組收益；以及非員工成本採購方面的大量工作，因此，在所有這些工作中，我們致力於實現兩位盈利增長的兩位利潤。正如您所看到的，毛利率和營運支出都有空間，而且隨著我們看到銷售額略有增長，我們應該開始看到這項工作以非常有意義的方式朝著這個方向發展。

Great. Thank you very much.

偉大的。非常感謝。

Peter Grom, UBS.

瑞銀的 Peter Grom。

Thank you, operator. Good morning everyone. I hope you're doing well. So I just wanted to ask around the commentary regarding sales growth in fiscal '26 should there be a resolution related to tariffs. I know this is a bit specific, but is that a full-year comment or is that just that you would anticipate returning to organic sales growth at some point in the year? And then totally getting that this is probably hard to answer just given the many moving pieces, should the tariffs remain in place, can you provide any guard rails in terms of how this may impact your ability to return to growth? Thanks.

謝謝您，接線生。大家早安。我希望你一切都好。因此，我只是想詢問有關 26 財年銷售成長的評論，是否有與關稅相關的解決方案。我知道這有點具體，但這是對全年的評論嗎？還是只是您預計在今年某個時候會恢復有機銷售成長？然後，我完全明白，由於存在許多變動因素，這個問題可能很難回答，如果關稅繼續存在，您能否提供一些防護措施，說明這將如何影響您恢復成長的能力？謝謝。

I'll take the first one and Akhil can take the second one. Hi Peter. Obviously, the comment on the return to positive growth is a fiscal '26 comments. It's too early for us to just give you a comment specifically by quarter. Obviously, we'll just give you a lot more visibility when the August call will be, when we close this fiscal year, and going into next year. But the comment is for full year.

我會選擇第一個，而阿希爾可以選擇第二個。你好，彼得。顯然，有關恢復正成長的評論是針對財政 26 年的評論。現在我們僅根據季度給出具體評論還為時過早。顯然，我們只是會給你更多關於八月電話會議的時間、本財年結束的時間以及明年開始的時間的說明。但該評論針對的是全年。

And again, I just want to reiterate, because we are seeing the sequential improvements on our net sales from Q2 to Q3, but also because we are already in positive retail territory when you exclude travel retail, and if you remember, Peter, also while we are resetting our travel retail business to just be less volatile in the total business, we also are anniversarizing some pretty low base when we are going to go into '26 for travel retail. This is why it's giving us some, actually, a high degree of confidence that we're just going to go into fiscal '26 growth. But obviously, this is a yearly comment. And we are laser focused to do it on the key regions, obviously, the U.S., China, Japan, as I mentioned, are already moving in the right direction with market share gain. And we have a lot more work to do.

我再次重申，因為我們看到從第二季度到第三季度我們的淨銷售額連續改善，而且當你排除旅遊零售時，我們已經處於積極的零售領域，如果你還記得的話，彼得，當我們重新調整我們的旅遊零售業務以降低整體業務的波動性時，當我們進入 26 年旅遊零售業時，我們也在紀念一些相當低的基數。這就是為什麼它實際上給了我們很大的信心，讓我們相信我們將在 26 財年實現成長。但顯然，這是每年一次的評論。我們專注於關鍵地區，顯然，正如我所提到的，美國、中國、日本已經朝著正確的方向發展，市場份額也不斷增加。我們還有許多工作要做。

I'm not yet pleased of the progress that we are making in the UK and in the emerging markets in others. But we have a really clear task force with our team to just make sure that we turn them around. And we invest in every type of green shoot that we have into the market. But obviously, there are some external risk factors that are linked to, at this moment in time, more to the tariffs and the tariffs having an impact on consumer confidence. And maybe, Akhil, you want to just -- the materiality of the tariffs.

我對我們在英國和其他新興市場的進展還不滿意。但我們的團隊有一個非常明確的任務小組，以確保我們能夠扭轉局面。我們對市場上推出的每一種新芽都進行投資。但顯然，目前存在一些與關稅相關的外部風險因素，這些因素對消費者信心的影響更大。也許，阿基爾，你只是想了解關稅的重要性。

Absolutely. Hi there, Peter. Overall, just to start from the top, right, markets are growing XTR. Our retail is growing XTR. And we are starting to grow share. So that all goes well for the top line that Stephane talked about. And we are definitely basing some of the last periods of very difficult TR comparatives.

絕對地。你好，彼得。總體而言，從頂部開始，市場正在成長 XTR。我們的零售正在成長 XTR。我們的份額開始成長。因此，對於 Stephane 談到的頂線來說，一切都很順利。而且我們肯定會對最近一些非常困難的 TR 時期進行比較。

From a tariff perspective, of course, the biggest watch-out is for everybody. We are not unique in that. It's consumer sentiment, consumer sentiment in the U.S., consumer sentiment in China, which is hard to predict. But what we are seeing is that our brands are continuing to be very strong. They are some of the most desirable brands in China and around the world. So we feel good in terms of -- And frankly, the talk has been more positive and more constructive even on the tariff area and those negotiations. So that gives us confidence.

當然，從關稅角度來看，最大的警覺是每個人的。我們在這方面並不是唯一的。消費者信心，美國的消費者信心，中國的消費者信心，都很難預測。但我們看到，我們的品牌依然保持強勁勢頭。它們是中國乃至全世界最受歡迎的品牌之一。因此，我們對此感到滿意——坦白說，即使在關稅領域和那些談判方面，談判也更加積極、更具建設性。這給了我們信心。

On cost side of tariffs, of course, at these high rates for any company doing any cross-border business, the impacts are not going to be small. And we did say in our prepared comments that they can be material. However, we are looking at three big things and I think it's important to reiterate what Stephane just said. We are looking at one, making sure that the flow of goods is in the most least tariff lanes, and we have the capability to do that. Second, We are looking at pricing opportunities. We do have opportunities there. And while being very surgical and keeping consumer confidence in mind, we will take action on that. But we will do that if it's necessary, and that's not counted yet.

當然，從關稅成本來看，對於任何從事跨境業務的公司來說，如此高的關稅對其影響不會小。我們在準備好的評論中確實說過，它們可能是重要的。然而，我們正在關註三件大事，我認為重申史蒂芬剛才所說的話很重要。我們正在研究一個方法，確保貨物流通在關稅最低的航線上，我們有能力做到這一點。第二，我們正在尋找定價機會。我們確實在那裡有機會。在採取嚴謹措施並維護消費者信心的同時，我們將採取行動。但如果有必要的話我們就會這麼做，但這還不算數。

Thirdly, we are looking at more PRGP opportunities as (inaudible) because as we have executed well so far on PRGP, this is a new muscle organization has built. And Stephane is driving this across the whole company internally and externally with other partners. So we see more opportunities to do things there as we build this new muscle which we have really progressed on in last year. So those would be some of the things we are looking at and and some guard rails around how we will navigate.

第三，我們正在尋找更多的 PRGP 機會（聽不清楚），因為到目前為止我們在 PRGP 上表現良好，這是一個新的肌肉組織建立起來的。Stephane 正在與其他合作夥伴一起在整個公司內部和外部推動這項進程。因此，隨著我們打造這一新實力，我們看到了在那裡做事的更多機會，我們在去年確實取得了進展。這些就是我們正在關注的一些事情以及我們如何導航的一些護欄。

Thank you so much. I'll pass it on.

太感謝了。我會傳達的。

Dara Mohsenian, Morgan Stanley.

摩根士丹利的達拉‧莫森尼安 (Dara Mohsenian)。

Good morning, guys. You mentioned the share gains in the U.S., China, and Japan in the quarter. Clearly, there are also some areas of weakness travel retail, the UK, as you mentioned, some emerging markets. So I was just hoping you could spend some time on how you think about your market share performance as you look out to fiscal '26. What are the most important building blocks in your mind to get back to better market share performance consistently across the organization? And how much progress you think you can make and share, particularly in some of the laggard areas that haven't seen a recovery yet? Thanks.

大家早安。您提到了本季美國、中國和日本的市佔率成長。顯然，旅遊零售業也存在一些薄弱領域，正如您所提到的英國，以及一些新興市場。所以我只是希望您能花點時間思考一下您在展望 26 財年時如何看待自己的市佔率表現。您認為，在整個組織內持續恢復較好的市場佔有率表現最重要的基石是什麼？您認為您可以取得和分享多少進展，特別是在一些尚未復甦的落後地區？謝謝。

Thanks, Dara. So let me just give you a little bit more flavor of also what is happening in the U.S., China, maybe like, in Japan. Because it's very important and I think I mentioned it briefly earlier. We are in a situation where we haven't gained market share in the U.S. in many, many years, like I said in introduction. Now, we are resuming with market share gain, and we did it on three of the four categories.

謝謝，達拉。因此，讓我再向您稍微介紹一下美國、中國，甚至日本正在發生的事情。因為它非常重要，而且我想我之前已經簡單提到過它了。正如我在介紹中所說的那樣，我們目前的狀況是，我們已經很多年沒有在美國獲得市場份額了。現在，我們正在恢復市場份額的成長，並且在四個類別中的三個類別中都實現了這一目標。

Clinique, I mentioned it, 11 consecutive months of market share gain. We have the number one and the number two brands in skincare and makeup in the U.S. on the quarter. The Estee Lauder brand gained share in skincare and makeup for the second consecutive quarter. The Ordinary is back into market share gain also in the U.S., but frankly, in many markets around the world. And The Ordinary is the number two brand in skincare in the U.S., behind Clinique.

倩碧，我提到過，其市佔率連續 11 個月成長。本季度，我們在美國護膚品和化妝品領域分別擁有第一和第二大品牌。雅詩蘭黛品牌連續第二個季度在護膚品和化妝品領域的份額有所增長。The Ordinary 不僅在美國重新獲得了市場份額，而且坦白說，在全球許多市場也都取得了同樣的成績。The Ordinary 是美國第二大護膚品牌，僅次於倩碧。

And I want to say also, we are very pleased with some of the progress that MAC is making and gaining share and is the number 2 brand in makeup in the U.S., behind Clinique. So you have Clinique number one; and MAC number two in makeup. And you have Clinique number one; and The Ordinary number two in skincare. So very, very strong position.

我還想說，我們對 MAC 所取得的進步和市場份額的增加感到非常高興，MAC 是美國化妝品市場第二大品牌，僅次於倩碧。所以你有倩碧第一名；化妝品領域排名第二的MAC。還有倩碧第一名； The Ordinary 在保養品中排名第二。因此，我們的立場非常非常堅定。

Our intent, once you think about fiscal '26, is to maintain and to accelerate in this position. In the U.S., we know we have a lot more work to do on fragrances. We have an amazing portfolio of luxury brands, from Jo Malone, Tom Ford, Le Labo, and so on. And Le Labo is going from strength to strength, gaining market share in pretty much every markets around the world. We want to just make sure that it's reflected on the total category also in fragrances in the U.S., the way we've been able to do it in the last quarter in China, where we are gaining share in skincare, makeup, fragrances, and hair, with at least eight brands that are gaining market share. And I'm talking about not only some of our smaller brands, but I'm talking about La Mer, I'm talking about Lauder, talking about Tom Ford, Joe Malone, and so on and so forth, that are all brands that are gaining shares.

一旦您考慮 26 財年，我們的目的就是保持並加速這一地位。在美國，我們知道在香水方面還有很多工作要做。我們擁有令人驚嘆的奢侈品牌組合，包括 Jo Malone、Tom Ford、Le Labo 等等。Le Labo 的實力日益增強，幾乎在全球所有市場都佔據了主導地位。我們只是想確保這種增長也能反映在美國香水的整個類別中，就像我們上個季度在中國所做的事情一樣，我們在中國的護膚品、化妝品、香水和頭髮領域的份額正在增加，至少有八個品牌的市場份額正在增加。我不僅談論我們的一些小品牌，還談論 La Mer、Lauder、Tom Ford、Joe Malone 等等，這些品牌的市場份額都在不斷增長。

What is giving me also some confidence is when I look at Japan and Korea, we are the number one group in fragrances, all of them. So when you talk about prestige and luxury, we've become number one last year in Japan for calendar '24. And now, we have three consecutive quarters of number one position in Japan, and we also have this position of number one in Korea. So we know how to just bring them. We're taking the learning from what we are applying in Japan and in Korea, we're bringing them to the U.S. We're taking the learnings of what we are doing in China, and we are bringing them to the emerging markets where in the emerging markets, we've been somehow disrupted by the earthquake in Thailand and some issues of shipment from Q3 to Q4 in India. That being said, if you exclude these two markets, we are flat in the emerging markets. I'm not satisfied yet, and we are going to put a lot more action in place.

讓我更有信心的是，當我看到日本和韓國時，我們發現我們是香水領域的第一大國。因此，當談到聲望和奢華時，我們去年已成為日本 24 日曆中排名第一的品牌。現在，我們已連續三個季度在日本排名第一，在韓國也排名第一。所以我們知道如何把它們帶過來。我們正在把在日本和韓國應用的經驗帶到美國。我們也把在中國的經驗帶到新興市場。在新興市場，我們的業務受到了泰國地震的干擾，印度在第三季至第四季的出貨問題也造成了影響。話雖如此，但如果排除這兩個市場，我們在新興市場的表現將會持平。我還不滿意，我們還會採取更多行動。

And one of the big markets that we are now laser focused, with the new leadership in place, is the UK. And frankly, here, we have so many great learnings of how we've turned around Clinique, how we are accelerating Estee Lauder, how we are putting MAC in the right position to take exactly the learning and to deploy them into the UK.

隨著新領導層的到位，我們現在重點關注的一大市場就是英國。坦白說，在這裡，我們學到了很多寶貴的經驗，例如如何扭轉倩碧的頹勢，如何加速雅詩蘭黛的發展，如何讓 MAC 處於正確的位置，以便吸取這些經驗並將其應用到英國。

I have to say I'm not taking basically the few weeks as an indicator for the quarter, but the beginning of April with what we see in retail is actually strong in the U.S., it's actually even stronger in China, and it's showing some positive momentum in the UK and in some emerging markets. So we're taking these learnings and we're putting them into acceleration.

我必須說，我基本上不會把這幾週的情況作為本季度的指標，但從四月初的情況來看，美國的零售業實際上表現強勁，中國的零售業實際上表現得更加強勁，英國和一些新興市場也顯示出一些積極的勢頭。因此，我們正在吸取這些經驗教訓並加速其發展。

Now, obviously, your last piece of the question is travel retail. Travel retail, we are still anniversarying some really big numbers, and there's a high double-digit negative. That being said, if I look at Hainan, we are seeing some not positive momentum, but momentum above the departments. Meaning that there's an indication that we are going back into some market share again within Hainan by being focused on driving retail. We have a new leadership organization in place in travel retail which is doing a fantastic job that is really laser focused on driving retail through events.

現在，顯然，你的最後一個問題是旅遊零售。在旅遊零售方面，我們仍在慶祝一些真正大的數字，並且出現了高達兩位數的負增長。話雖如此，如果我看一下海南，我們看到的並不是積極的勢頭，而是各部門之上的勢頭。這意味著有跡象表明，透過專注於推動零售業，我們將重新獲得海南的一些市場份額。我們在旅遊零售領域建立了一個新的領導組織，該組織做得非常出色，真正專注於透過活動推動零售業。

Just to give you an example, last month, actually the month of March or two months ago, we drove massive amount of events with the Estee Lauder brand that is still one of the leading brands in Hainan today.And we are providing services on the floor and we were doing that for over a week for more than 200 services a month. So we've shifted the focus to be a retail organization and meet the consumer demand where it is around the world.

舉個例子，上個月，實際上是三月或兩個月前，我們與雅詩蘭黛品牌合作舉辦了大量活動，該品牌至今仍是海南的領先品牌之一。我們在現場提供服務，我們這樣做了一個多星期，每月提供超過 200 次服務。因此，我們將重點轉向成為零售組織並滿足世界各地的消費者需求。

And the last point that I would put is our ability to now move quickly and I say there's no more debate, we move where the consumer is going. The move that we did on Amazon Prestige Beauty, the moves that we've done on Shopee, the moves that we are doing on TikTok Shop around the world is also another indicator of our ability to just put our brand where the consumer is and really recapture our fair share of the market.

我要說的最後一點是我們現在能夠快速行動，而且我認為毫無疑問，我們會跟隨消費者的步伐前進。我們在 Amazon Prestige Beauty 上採取的舉措、我們在 Shopee 上採取的舉措以及我們在全球範圍內對 TikTok Shop 採取的舉措也再次表明我們有能力將我們的品牌放在消費者所在的地方，並真正重新奪回我們應得的市場份額。

Great. Thanks, guys.

偉大的。謝謝大家。

Bryan Spillane, Bank of America.

美國銀行的布萊恩·斯皮蘭。

Thanks, operator. And good morning everyone, and thank you for a lot of disclosure today which is really helpful in just trying to understand the story as it evolves. I had a question about how you're balancing the margin target, the margin aspiration over the next few years and some of the incremental actions you're taking like increasing the size of the restructuring versus just making sure it doesn't interfere with a re-acceleration and sustained acceleration on revenues.

謝謝，接線生。大家早安，感謝大家今天的揭露，這對我們了解故事的發展非常有幫助。我有一個問題，關於您如何平衡利潤率目標、未來幾年的利潤率願望以及您正在採取的一些漸進式行動，例如擴大重組規模，而不是僅僅確保它不會幹擾收入的重新加速和持續加速。

So there's a lot of moving parts to your story right now and especially trying to reboot some brands, refocus the center of equilibrium geographically, and at the same time, chasing a margin target or say, pursuing a margin target. Can you just kind of give us some sense of how you're thinking about the choices that are involved in that and really safeguarding at the end of the day that we've got a model that will grow revenue which, ultimately, is more important than the margin target? Thank you.

因此，現在您的故事中有很多活動部分，尤其是嘗試重啟一些品牌，重新調整地理上的平衡中心，同時追求利潤目標，或者說，追求利潤目標。您能否向我們介紹一下，您是如何考慮其中涉及的選擇，並最終真正確保我們擁有一個能夠增加收入的模式，這最終比利潤目標更重要？謝謝。

Thanks, Brian. Very good question. Obviously, this is the one that ultimately is going to -- the right balance of the transformation that we are into our PRGP and at the same time, being able to just resume with growth and this solid double-digital operating margin in the next few years. And thank you for acknowledging also the fact that we're giving a little bit more visibility. And our intent, I want to be very clear, is to give you more visibility as we go. There's a lot of volatility out there, but I think we are also much clearer, and we are getting, hopefully, as you see today, some positive momentum in many areas.

謝謝，布萊恩。非常好的問題。顯然，這最終將是我們向 PRGP 轉型的正確平衡，同時能夠在未來幾年恢復成長並實現穩健的兩位數營業利潤率。也感謝您對我們給予更多關注的認可。我想非常明確地指出，我們的目的是讓您在我們前進的過程中獲得更高的知名度。雖然存在著許多波動，但我認為我們也更加清晰了，並且希望正如你們今天所看到的，我們在許多領域都獲得了一些積極的勢頭。

Look, at the end of the day, one of the things I've said in my remark is the big transformation that I'm driving with the team is also the clarity of who does what in the organization. And I think you've heard me say clearly what is the role of the brand, which is obviously driving the overall strategy that comes from the strategy from the company, but obviously, how do you apply it for every brand; an accelerated number of innovation in the market, so we are laser focused on having our own stimulus innovation plan by brand that meets the consumer for trial and for long term acquisition also; but at the same time, what is basically the role of the regions and the affiliate ecosystem really to just really do the planning, the execution, and really meeting the consumers where they are.

看看，歸根結底，我在演講中提到的一件事是，我和團隊一起推動的重大變革也是明確組織中誰做什麼。我想你已經聽我清楚地說過品牌的角色是什麼，它顯然推動著來自公司策略的整體策略，但顯然，你如何將它應用於每個品牌？市場上創新數量的加速成長，因此我們專注於制定自己的品牌刺激創新計劃，以滿足消費者的試用和長期購買需求；但與此同時，地區和附屬生態系統的作用實際上只是進行規劃、執行並真正滿足消費者的需求。

I think one of the biggest -- the function obviously remains and will always be the enablers of this strategy and this execution, and I think we are making a lot of progress through PRGP to just make sure that all our functions are much more leaner, faster, and much more agile as the way we described it, hopefully, in our supply chain and how we are operating and we can just navigate this moment in time. But I think the biggest challenge is where the responsibility of the P&L is ultimately. And that will simplify and being able to just go much faster today to really deploy and allocate the fund appropriately where we have successes.

我認為其中最重要的一點是——該功能顯然仍然存在，並且永遠是這一戰略和執行的推動因素，我認為我們通過 PRGP 取得了很大進展，以確保我們所有的功能都更加精簡、更快、更靈活，正如我們所描述的那樣，希望在我們的供應鏈和運營方式中，我們可以及時應對這一時刻。但我認為最大的挑戰是損益表的責任最終在哪裡。這將簡化我們今天能夠更快地在取得成功的地方真正適當地部署和分配資金的過程。

And I think today, obviously, we have a certain number of guardrails we're putting in place. We couldn't change it in the middle of the cycle. But when it comes to July 1, the beginning of our new fiscal year, we are accelerating with this new model.

我認為今天我們顯然已經設置了一定數量的護欄。我們無法在周期中途改變它。但當7月1日，也就是新財年開始的時候，我們就會用這種新模式來加速發展。

So I would say as we are pushing the transformation, we are delayering the organization, we are moving with outsourcing with speed, we are cutting costs through the organization through the procurement project, we are clarifying who does what. And I've spent personally with my new executive team countless hours and days, if not, weeks traveling around the world with town halls. From the moment we did the last call at the beginning of February, to two weeks ago, I think my feet haven't touched the ground, basically, really making sure that we are very close to the organization to make sure we're saying what do we retain on our culture that makes us so unique but what needs to be evolved. And a lot of things that I'm putting the accent on is this need to be ambitious to go for the new consumers through Beauty Reimagined, the consumer coverage, accelerating our innovation, and making sure that we are very much more agile in the way that we are boosting investment. I'm all for boosting investment throughout, but I want to just make sure and I'm driving the need to have the highest and best ROI through everything we do.

所以我想說，在我們推動轉型的同時，我們正在削減組織層級，我們正在快速推進外包，我們正在透過採購專案削減整個組織的成本，我們正在明確每個人負責什麼。我和我的新管理團隊花了無數的時間和日子，甚至數週的時間在世界各地參加市政廳會議。從二月初我們進行最後一次電話會議的那一刻起，到兩週前，我想我還沒有真正踏實地工作過，基本上，我真的在確保我們與組織保持密切聯繫，以確保我們能夠說出我們的文化中哪些部分讓我們如此獨特，哪些部分需要改進。我強調的很多事情是，我們需要雄心勃勃地透過 Beauty Reimagined 來吸引新消費者，擴大消費者覆蓋範圍，加速我們的創新，並確保我們在增加投資的方式上更加靈活。我完全贊成增加投資，但我只是想確保我們所做的一切都能獲得最高、最好的投資報酬率。

Then at the same time what needs to change, and this is the work we'll tell you a lot more when we come into August and beyond, which are all the projects that we are driving with outsourcing, which are going to fundamentally give us access to some of the best tools that are available and to just make sure that this company becomes the leaner and the most agile company to really meet the consumer demand where they are around the world.

那麼同時需要改變什麼呢？到了八月份及以後，我們會告訴大家更多有關這項工作的信息，這些都是我們透過外包推動的項目，這些項目將從根本上讓我們能夠使用一些最好的工具，並確保這家公司變得更精簡、更敏捷，從而真正滿足全球消費者的需求。

So I'm highly confident and I'm seeing it with our team, I know the executive team is behind this vision, I know the team is behind the vision, I know the Board of Directors is behind the vision, and we are basically going with one mission to reignite growth, as I said now, which is new as of next year and obviously, resume with strong double-digit operating margin in the next few years. And Akhil will want to add a few things.

所以我非常有信心，而且我看到我們的團隊也在這樣做，我知道執行團隊支持這個願景，我知道團隊支持這個願景，我知道董事會支持這個願景，我們基本上在執行一個使命，那就是重新點燃增長，正如我現在所說的，這是明年的新目標，顯然，在未來幾年將恢復強勁的兩位數營業利潤率。Akhil 還想補充一些內容。

Thank you, Brian. That's a great question, and Stephane really covered it well. I wanted to give you just a few points to close it out. Stephane and I, as we are meeting all people around the world, we are very clear, it's growth, margin, and cash. And growth being a very large part of the driver of TSR, I think if you look under the hood, as we explained today, we are starting to see already the green shoots of growth. Our business in China grew. We're starting to see share growth in places where we haven't seen share growth. So we are starting to already tap into what's possible in terms of growing the company, which is why it gives us the confidence that barring the things we talked about external, we are poised to grow.

謝謝你，布萊恩。這是一個很好的問題，Stephane 確實很好地回答了這個問題。最後，我只想告訴大家幾點。史蒂芬和我，當我們與世界各地的所有人會面時，我們非常清楚，這就是成長、利潤和現金。成長是 TSR 驅動力中非常重要的一部分，我認為，如果你深入觀察，正如我們今天所解釋的那樣，我們已經開始看到成長的萌芽。我們在中國的業務不斷成長。我們開始在以前未見份額成長的領域看到份額成長。因此，我們已經開始挖掘公司發展方面的所有可能性，這就是為什麼它讓我們有信心，除了我們談到的外部因素之外，我們已經準備好發展。

Secondly, from the cost standpoint, our work has been massive. We out-executed the PRGP program we put for ourselves. It's, of course, not visible because of some of the deleverage we saw on travel retail this year. But a lot of that is getting cycled out.

其次，從成本角度來看，我們的工作量非常大。我們出色地完成了我們為自己制定的 PRGP 計劃。當然，由於我們今年看到旅遊零售業的一些去槓桿現象，這一點並不明顯。但其中很多都已經被淘汰了。

Thirdly, Stephane is fundamentally changing how we work. If you walk the hallways of a company and you look across, and especially the announcement on very clear delineation between brand, region and functions, that frees up resources. Because the way we work, there is opportunity to drive margins and fuel the business, but be very effective in this new way of speed, agility, and clear empowerment and accountability.

第三，Stephane 從根本上改變了我們的工作方式。如果你走進一家公司的走廊，你會看到，特別是關於品牌、區域和功能之間界線非常明確的公告，這可以釋放資源。因為我們的工作方式有機會提高利潤率並促進業務發展，但這種新的方式速度快、靈活，授權和問責明確，非常有效。

And then fourth, as we work to find the best processes with our external partners that we are discussing and Stephane shared that on shared services, et cetera, there is a significant opportunity to improve our working processes. So there is opportunity on the cost side and we are starting to see growth come through. And our hierarchy of value creation is very clear. It's growth, margin, cash. So you will see us invest without any apologies when the idea is right and drive that ROI. So hopefully, that gives you the clarity on the playbook we are following.

第四，當我們與正在討論的外部合作夥伴一起努力尋找最佳流程時，Stephane 分享了在共享服務等方面的情況，這是一個改善我們工作流程的重要機會。因此，成本方面存在機會，而且我們開始看到成長。我們的價值創造層次非常清晰。它是成長、利潤、現金。因此，當想法正確時，您會看到我們毫無歉意地進行投資並提高投資回報率。所以希望這能讓你清楚地了解我們所遵循的劇本。

That concludes today's question-and-answer session. If you are unable to join for the entire webcast, a playback will be made available at 10 PM Eastern Time today through May 15. Please visit the Investors section of the company's website to view a replay of the webcast. That concludes today's Estee Lauder conference call. I would like to thank you all for your participation and wish you all a good day.

今天的問答環節到此結束。如果您無法參加整個網路直播，我們將於今天東部時間晚上 10 點至 5 月 15 日提供回放。請造訪公司網站的投資人部分觀看網路廣播的重播。今天的雅詩蘭黛電話會議到此結束。感謝大家的參與，祝福大家有個愉快的一天。