雅詩蘭黛 (EL) 2022 Q3 法說會逐字稿

Good day, everyone, and welcome to the Estée Lauder Company's Fiscal 2022 Third Quarter Conference Call. Today's call is being recorded and webcast. For opening remarks and introductions, I would like to turn the call over to Senior Vice President of Investor Relations, Ms. Rainey Mancini.

大家好，歡迎參加雅詩蘭黛公司 2022 財年第三季度電話會議。今天的電話正在錄音和網絡直播。關於開場白和介紹，我想將電話轉給投資者關係高級副總裁 Rainey Mancini 女士。

Hello. On today's call are Fabrizio Freda, President and Chief Executive Officer; and Tracey Travis, Executive Vice President and Chief Financial Officer.

你好。今天的電話會議是總裁兼首席執行官 Fabrizio Freda；以及執行副總裁兼首席財務官 Tracey Travis。

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 factors 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，請讓我向您推薦我們的新聞稿和我們提交給 SEC 的報告，您會在其中找到可能導致實際結果與這些前瞻性陳述產生重大差異的因素。

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 net sales growth numbers are in constant currency, and all organic net sales growth excludes the noncomparable impacts of acquisitions, divestitures, brand closures and the impact of currency translation. You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website.

為了便於討論我們的基礎業務，對我們的財務業績和預期的評論是在我們的新聞稿中披露的重組和其他費用和調整之前。除非另有說明，否則所有淨銷售額增長數字均以不變貨幣計算，所有有機淨銷售額增長均不包括收購、資產剝離、品牌關閉的不可比影響以及貨幣換算的影響。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 措施之間的對賬。

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.

提醒一下，對在線銷售的提及包括我們通過我們的 brand.com 網站和第三方平台直接向我們的消費者進行的銷售。它還包括我們的產品通過我們的零售商網站的估計銷售額。

(Operator Instructions)

（操作員說明）

And now I'll turn the call over to Fabrizio.

現在我將把電話轉給 Fabrizio。

Thank you, Rainey, and hello to everyone. I want to begin by expressing the great sadness where for our colleagues and all the people impacted by the envision of Ukraine who are experiencing a devastating humanitarian crisis. We continue to focus on our employee safety, and our dearest hope is for peace to prevail.

謝謝你，雷尼，大家好。首先，我想為我們的同事和所有受到烏克蘭設想影響的人表示極大的悲痛，他們正在經歷一場毀滅性的人道主義危機。我們繼續關注員工的安全，我們最大的希望是和平盛行。

In the third quarter of fiscal year 2022, we delivered organic sales growth of 9%, in line with our guidance despite the acceleration of temporary COVID-19 restriction in China in March. We exercised cost discipline as volatility increased, and our adjusted operating margin expanded, leading to stronger-than-expected adjusted diluted earnings per share growth of 17%.

在 2022 財年第三季度，我們實現了 9% 的有機銷售額增長，符合我們的指導方針，儘管 3 月份中國加快了 COVID-19 臨時限制。隨著波動性增加，我們實施了成本紀律，調整後的營業利潤率擴大，導致調整後的攤薄後每股收益增長 17%，強於預期。

Our multiple engines of growth strategy enabled us to amplify the engines of the moment amid intensified macro environment, with sales rising organically across both brick-and-mortar and online. Every category grew organically, led by fragrances' outstanding performance. 11 brands contributed double-digit organic sales growth and further demonstrated our diversified drivers. Consumer demand remains robust even in this inflationary environment.

我們的多引擎增長戰略使我們能夠在宏觀環境加劇的情況下放大當下的引擎，實體店和在線銷售均實現有機增長。在香水的出色表現的帶動下，每個品類都實現了有機增長。 11個品牌貢獻了兩位數的有機銷售額增長，進一步展示了我們多元化的驅動力。即使在這種通脹環境下，消費者需求依然強勁。

Our largest brands provided highly sought-after, M·A·C, Estée Lauder and Clinique each delivered double-digit growth in makeup, fueling the category renaissance while La Mer thrived in skin care. Four of our scaling brands resonated strongly with consumers as Jo Malone London, Tom Ford Beauty, Aveda and Bobbi Brown each rose double digits. Among our developing brands, Le Labo, KILIAN PARIS and Bumble and bumble each achieved outsized growth and showcased their promise.

我們最大的品牌備受追捧，M·A·C、雅詩蘭黛和倩碧在彩妝領域均實現了兩位數的增長，推動了該品類的複興，而 La Mer 則在護膚品領域蓬勃發展。我們的四個規模化品牌與消費者產生了強烈共鳴，Jo Malone London、Tom Ford Beauty、Aveda 和 Bobbi Brown 均增長了兩位數。在我們的發展中品牌中，Le Labo、KILIAN PARIS 和 Bumble and bumble 均實現了超額增長並展示了他們的承諾。

Our sales rose double digit organically in the Americas and EMEA. We capitalize on reopening to translate improving brick-and-mortar traffic trends into outstanding sales growth, owing to our high-touch services, breakthrough innovation, hero franchises and operational excellence.

我們的銷售額在美洲和歐洲、中東和非洲地區實現了兩位數的有機增長。由於我們的高接觸服務、突破性創新、英雄特許經營權和卓越運營，我們利用重新開放將改善的實體客流量趨勢轉化為出色的銷售增長。

Our freestanding stores delivered exceptional performance benefiting from fleet optimization and expanded omnichannel capabilities and complement the strengths in specialty-multi. We are managing the ongoing complexities from the invasion of Ukraine as well as the temporary COVID-driven restrictions in China, which impacted performance in Asia Pacific in the quarter.

我們的獨立商店通過車隊優化和擴展的全渠道能力提供了卓越的業績，並補充了專業多元化的優勢。我們正在處理因入侵烏克蘭而造成的持續複雜性，以及中國因 COVID-19 造成的臨時限制，這些限制影響了本季度亞太地區的業績。

In Mainland China, organic sales fell mid-single-digit as 25% growth online was offset by a steep decline in brick-and-mortar. After a strong February, in Mainland China, traffic slowed more sharply in March to pressure brick-and-mortar sales. Additionally, for us, the distribution centers for our Mainland China business are in Shanghai and operated with limited capacity. Tourism to Hainan Island was also curtailed in March after a vibrant start of the quarter. There is no doubt that these current limitations in China will prove to be transitory, although there will be a far greater impact on our results in the fourth quarter than they were in the third quarter, as Tracey will discuss. Looking ahead, we are confident in the resilience of the Chinese consumers and the untapped opportunity driving our investments in the market. We expect a reacceleration of growth when this moment of COVID abates.

在中國大陸，由於 25% 的在線增長被實體店的急劇下滑所抵消，有機銷售額下降了中個位數。在經歷了強勁的 2 月份之後，中國大陸 3 月份的客流量大幅放緩，從而給實體店銷售帶來壓力。此外，對我們而言，我們中國大陸業務的配送中心位於上海，運營能力有限。在本季度開局活躍之後，3 月份前往海南島的旅遊業也有所縮減。毫無疑問，中國目前的這些限制將被證明是暫時的，儘管對我們第四季度業績的影響將比第三季度大得多，正如 Tracey 將討論的那樣。展望未來，我們對中國消費者的韌性以及推動我們在市場投資的未開發機會充滿信心。當 COVID 的這一刻減弱時，我們預計增長會重新加速。

Let me share the progress we made during the third quarter to drive these strong results and advance our long-term ambitions for our multiple engine of growth strategy. Innovation excelled to reach nearly 30% of sales. We continue to elevate our ability to leverage data analytics with our best-in-class creative talent and R&D to successfully anticipate scale and set trends. The breadth of our innovation wins was far-reaching and benefited every category. In skin care, La Mer upgraded The Treatment Lotion sort as the brand doubled down on this coveted East to West product, increasing the skin recharging Miracle Broth and transitioning to a recyclable luxurious glass bottle that contains 20% post-consumer recycled content.

讓我分享我們在第三季度取得的進展，以推動這些強勁的業績並推進我們對多引擎增長戰略的長期雄心。創新表現出色，佔銷售額的近 30%。我們通過一流的創意人才和研發繼續提升我們利用數據分析的能力，以成功預測規模和設定趨勢。我們的創新勝利的廣度是深遠的，並且使每個類別都受益。在護膚方面，La Mer 升級了 The Treatment Lotion 類別，因為該品牌在這款令人垂涎的東西方產品上加倍投入，增加了 Miracle Broth 的皮膚補充能力，並過渡到含有 20% 消費後可回收成分的可回收豪華玻璃瓶。

In Asia Pacific, consumer gravitated to the new serum strengths and anti-aging benefits, while in the Americas, educating on the benefits of hydration and energy proved impactful with consumers, demonstrating our expertise in serving multiple needs with one product and communicating with the appropriate local relevance.

在亞太地區，消費者傾向於使用新的血清強度和抗衰老功效，而在美洲，關於保濕和能量益處的教育對消費者產生了影響，證明了我們在用一種產品滿足多種需求並與適當的人溝通方面的專業知識當地相關性。

For makeup, M.A.C sought to grow its mascara base, especially across Gen Z, younger millennial and multi-ethnic consumers and created MACStack Mascara. With breakthrough technology that stacks and builds the last look. MACStack went viral on TikTok, having now amassed over 153 million views, and its sales far exceeded our expectations in the quarter.

在彩妝方面，M.A.C 尋求擴大其睫毛膏基礎，尤其是針對 Z 世代、年輕的千禧一代和多民族消費者，並創建了 MACStack 睫毛膏。憑藉突破性的技術，可堆疊並打造最後的外觀。 MACStack 在 TikTok 上風靡一時，目前已經積累了超過 1.53 億次瀏覽量，其本季度的銷售額遠遠超出了我們的預期。

Tom Ford Beauty new private blend rose fragrances, feature locally relevant nodes, where Rose De Chine feature Chinese golden peony and Rose D’Amalfi includes Italian bergamot. This launch drove exceptional results globally, including China, where the brand had a very successful Valentine's Day.

Tom Ford Beauty 全新私人混合玫瑰香水，以當地相關節點為特色，其中 Rose De Chine 以中國金牡丹為特色，Rose D'Amalfi 包括意大利佛手柑。此次發佈在全球範圍內取得了非凡的成果，包括中國，該品牌在中國度過了一個非常成功的情人節。

Lastly, in hair care, Aveda launched botanical retail strengthening overnight serum, disrupting the category by creating our first overnight serum that builds new hair bonds while you sleep. The products sold key consumer pain points with quick-absorbing technology by leveraging a serum-based formula. Encouragingly, the product quickly rose to being the top-selling product in freestanding store and sold out on brand.com.

最後，在頭髮護理方面，Aveda 推出了植物零售強化夜間精華素，通過創造我們的第一款夜間精華素，在您睡覺時建立新的頭髮聯繫，打破了這一類別。這些產品利用基於血清的配方，通過快速吸收技術銷售關鍵的消費者痛點。令人鼓舞的是，該產品迅速成為獨立商店中最暢銷的產品，並在brand.com上售罄。

We are excited to build upon this momentum with our new innovation center in Shanghai opens later this calendar year. This important investment in China will significantly increase our ability to serve the Chinese and Asian consumers with locally relevant and inspired innovation. Also, the new center will further enable our East to West innovation mindset, supporting the creation of more successes like La Mer's The Treatment Lotion.

我們很高興能在今年晚些時候在上海開設新的創新中心，從而在這一勢頭的基礎上再接再厲。這項在中國的重要投資將顯著提高我們為中國和亞洲消費者提供與當地相關的創新服務的能力。此外，新中心將進一步激發我們東西方的創新思維，支持創造更多成功，例如 La Mer 的 The Treatment Lotion。

Looking at our growth engines by category, the strategic decision to pivot our fragrance portfolio to luxury and artisanal is benefit both top line growth and profitability. Fragrances performance in the third quarter was super with sales increasing 31% organically. Impressively, sales exceeded the pre-pandemic third quarter of fiscal year 2019 by nearly 50% on a reported basis. Jo Malone London, Tom Ford Beauty, Le Labo, KILIAN PARIS and Editions de Parfums Frédéric Malle, each delivered double-digit sales growth, and Estée Lauder brand complemented these strengths with its well-received new luxury collection. As consumers around the world increasingly express their individuality with scent, these brands are delivering outstanding results, with strong double-digit growth fiscal year-to-date in every region, driven by demand across channels from brick-and-mortar to online and travel retail. There freestanding doors are driving omnichannel experiences, while their online businesses have been transformed during the pandemic.

按類別查看我們的增長引擎，將我們的香水組合轉向奢侈品和手工的戰略決策有利於收入增長和盈利能力。第三季度香水的表現非常出色，銷售額有機增長了 31%。令人印象深刻的是，據報導，銷售額比大流行前的 2019 財年第三季度高出近 50%。 Jo Malone London、Tom Ford Beauty、Le Labo、KILIAN PARIS 和 Editions de Parfums Frédéric Malle 均實現了兩位數的銷售增長，而雅詩蘭黛品牌憑藉其廣受好評的新奢侈品系列補充了這些優勢。隨著世界各地的消費者越來越多地用香味表達他們的個性，這些品牌正在取得出色的成績，在從實體店到在線和旅遊等渠道需求的推動下，本財年迄今為止，每個地區都實現了兩位數的強勁增長零售。獨立門正在推動全渠道體驗，而他們的在線業務在大流行期間發生了轉變。

And this fragrance brands are also contributing to our sustainability goals, with refillable packaging being a compelling element of the value proposition for Le Labo and KILIAN PARIS. We are also thrilled to announce that during the third quarter, Le Labo became B Corp certified, making it the first major fragrance brand and first within our company to receive this certification, indicating a high level of commitment to sustainability and impact.

這個香水品牌也為我們的可持續發展目標做出了貢獻，可再填充包裝是 Le Labo 和 KILIAN PARIS 價值主張的一個引人注目的元素。我們還很高興地宣布，在第三季度，Le Labo 獲得了 B Corp 認證，使其成為第一個主要香水品牌，也是我們公司內第一個獲得該認證的品牌，表明對可持續性和影響力的高度承諾。

Turning to makeup. It was on this call a year ago that we introduced our expectation for makeup renaissance, anticipating it would gradually evolve market by market as social and professional use educations began to resume. We envisioned the category would experience a recovery driven by both restocking as well as a renaissance rooted in a renewed passion for the joy and creativity of makeup after a difficult time.

轉向化妝。在一年前的這個電話會議上，我們提出了我們對化妝品復興的期望，預計隨著社會和專業使用教育開始恢復，它將逐步逐個市場演變。我們設想該類別將經歷由補貨推動的複蘇，以及在艱難時期後重新燃起對化妝樂趣和創造力的熱情的複興。

Even with the rise of the Delta and Omicron variants, the makeup renaissance has delivered very favorable trends and offers great promise for the future. As usual location expanded in certain markets upon reopening in the third quarter, makeup once again delivered double-digit organic sales growth in the Americas and EMEA. M.A.C and Clinique's makeup sales growth accelerated sequentially, while Estée Lauder and La Mer businesses in the category are already ahead of pre-pandemic levels.

即使隨著 Delta 和 Omicron 變體的興起，化妝品的複興也帶來了非常有利的趨勢，並為未來提供了巨大的希望。與往常一樣，在第三季度重新開放後，某些市場的位置擴大了，化妝品在美洲和歐洲、中東和非洲地區再次實現了兩位數的有機銷售增長。 M.A.C 和 Clinique 的化妝品銷售增長連續加速，而該類別的雅詩蘭黛和 La Mer 業務已經領先於大流行前的水平。

While brands have been meticulous in executing their merchandising and innovation strategy for the renaissance, we invested to create the omni artist with meeting the consumers in innovative ways across brick-and-mortar and online to educate inspire new looks and offer the best in personalized high-touch services.

雖然品牌一直在為複興而精心執行其營銷和創新戰略，但我們投資創建全能藝術家，以創新的方式在實體店和在線上與消費者見面，以教育激發新面貌並提供最好的個性化高端-觸摸服務。

M.A.C has been superb in this regard. So, too, has Bobbi Brown with events like live streams from the largest mall in Manchester, England to as per group classes to [domain] in China to one-to-one Zoom sessions in the U.S.

M.A.C在這方面做得很出色。 Bobbi Brown 的活動也是如此，例如從英國曼徹斯特最大的購物中心直播到中國 [domain] 的小組課程，再到美國的一對一 Zoom 會議。

Moving to hair care, Aveda, Bumble and bumble have reignited growth engines to contribute to the diversified category growth than we expected for fiscal year 2022. Impressively, even as these brands grew sales strong double digits in brick-and-mortar or reopening during the third quarter, they also achieved mid-single-digit online growth.

轉向護髮，Aveda、Bumble 和 bumble 重新點燃了增長引擎，為多元化類別的增長做出了貢獻，超出了我們對 2022 財年的預期。令人印象深刻的是，即使這些品牌在實體店或在第三季度，他們還實現了中個位數的在線增長。

Lastly, while skin care was pressured by COVID restrictions in the East, the bright spots were still many. In the quarter, we continued to advance our strategies across many long-term growth drivers from luxury to prestige. La Mer performance was extraordinary, with sales rising strong double digits. As I discussed, it upgrades The Treatment Lotion sort creating a high effect on the still new hydrate infused emotion, while its heroes were highly sought after. With desirable innovation and coveted icons, La Mer is welcoming new consumers, earning their trust and traded them up as its ultra Genaissance de la Mer franchise is booming. While our high-end prestige skin care thrives with La Mer and Estée Lauder Re-Nutriv, Bobbi Brown is prospering in the heart of the category, thanks to its strategic focus on treasured heroes like vitamin-enriched face base.

最後，雖然東部地區的新冠疫情限制對皮膚護理造成壓力，但亮點仍然很多。在本季度，我們繼續推進從奢侈品到聲望的許多長期增長驅動因素的戰略。 La Mer 表現非凡，銷售額強勁增長兩位數。正如我所討論的，它升級了 The Treatment Lotion 類型，對注入了新水合物的情感產生了很高的影響，而它的英雄則受到了高度追捧。憑藉令人嚮往的創新和令人垂涎的標誌，La Mer 正在歡迎新的消費者，贏得他們的信任並在其超 Genaissance de la Mer 特許經營權蓬勃發展之際將他們換掉。雖然我們的高端高端護膚品與 La Mer 和 Estée Lauder Re-Nutriv 一起蓬勃發展，但 Bobbi Brown 在該類別的核心領域蓬勃發展，這要歸功於其對珍貴英雄的戰略重點，如富含維生素的面部基底。

We are also laser focused on entry-level prestige to reach new consumers, notably with DECIEM The Ordinary as the brand amplifies its heroes to drive repeat with its ingredient-led regiment-based approach. After the quarter closed, DECIEM announced it will be refining its brand portfolio to focus resources on the compelling opportunity we foresee for The Ordinary and NIOD.

我們還專注於入門級的聲望，以吸引新的消費者，特別是 DECIEM The Ordinary，因為該品牌通過其以成分為主導的基於軍團的方法來擴大其英雄形像以推動重複。本季度結束後，DECIEM 宣布將優化其品牌組合，將資源集中在我們預見到的 The Ordinary 和 NIOD 的令人信服的機會上。

During the quarter, we also improved upon the fundamentals of consumer acquisitions, engagement and high-touch services, positioning us well to realize even greater success with trial and repeat. Our partnership with TikTok expanded, and we are piloting new innovations on the platform to be at the forefront of social commerce innovations. In the U.S., several of our brands launched storefronts on TikTok, similarly linking to brand.com. Brands also expanded their capabilities with Instagram Shopping and launched category powered lenses on Snapchat similarly linked to brand.com. Clinique realized favorable engagement trends on TikTok and Instagram, and it featured its back in stock coveted Black Honey lipstick and strong recruitment growth with new advertising for Moisture Surgood evening 100 hour featuring the need for social phase of adventure campaign.

在本季度，我們還改善了消費者獲取、參與度和高接觸服務的基本面，使我們能夠通過反複試驗獲得更大的成功。我們與 TikTok 的合作夥伴關係擴大了，我們正在平台上試行新的創新，以站在社交商務創新的最前沿。在美國，我們的幾個品牌在 TikTok 上開設了店面，同樣鏈接到 brand.com。品牌還通過 Instagram 購物擴展了他們的功能，並在 Snapchat 上推出了與brand.com類似的類別驅動鏡頭。倩碧在 TikTok 和 Instagram 上實現了良好的參與度趨勢，並展示了其令人垂涎的黑蜂蜜口紅的庫存和強勁的招聘增長，並推出了 Moisture Surgood night 100 小時的新廣告，其中需要冒險活動的社交階段。

The Estée Lauder brand entered the metaverse as connecting with our consumer wherever they are is paramount, and we are excited to be testing and learning in this new ecosystem. Estée Lauder was the exclusive beauty brand partner of Decentraland Metaverse Fashion Week, the first ever large virtual fashion week in an unchanged metaverse.

雅詩蘭黛品牌進入虛擬世界是因為無論消費者身在何處，與他們建立聯繫至關重要，我們很高興能在這個新的生態系統中進行測試和學習。雅詩蘭黛是 Decentraland Metaverse 時裝週的獨家美妝品牌合作夥伴，這是首個大型虛擬時裝週。

Around the world, our brands are increasingly leveraging new campaign management tools to tailor communication and drive repeat to both reengage with consumers and foster relationships with new consumers. We are realizing increased reactivation and repeat purchase rate from the U.K. to France, Australia and beyond.

在全球範圍內，我們的品牌越來越多地利用新的活動管理工具來定制溝通並推動重複，以重新吸引消費者並與新消費者建立關係。我們正在實現從英國到法國、澳大利亞及其他地區的重新激活和重複購買率的提高。

In closing, we delivered very strong performance amid the accelerating headwinds during the third quarter. We also made excellent progress advancing the long-term drivers of our multiple engine of growth strategy. These results in this progress are due to the tremendous accomplishments of our employees around the world to whom I extend my deepest thanks as they continue to manage complex situation with grace and ingenuity.

最後，在第三季度逆風加速的情況下，我們實現了非常強勁的業績。我們還在推進多引擎增長戰略的長期驅動力方面取得了顯著進展。這一進展的這些成果歸功於我們在世界各地的員工所取得的巨大成就，我向他們表示最深切的感謝，因為他們繼續以優雅和獨創性的態度處理複雜的情況。

Moreover, I'm incredibly inspired by our employees' compassion for each other. Last week marked the 2-year anniversary of the ELC Cares Employee Relief Fund. The fund was created in response to employee increasing desire to support one another in times of need. Since inception, over $10 million has been distributed to employees globally from donations and company matches.

此外，我們員工對彼此的同情心讓我深受鼓舞。上周是 ELC Cares 員工救濟基金成立 2 週年。該基金是為了響應員工在需要時相互支持的日益增長的願望而設立的。自成立以來，已通過捐贈和公司匹配向全球員工分配了超過 1000 萬美元。

Looking ahead, while we are lowering our expectation for the fourth quarter, given the impact of the temporary COVID-driven restrictions in China, we expect to deliver another record year in fiscal year 2022. We remain incredibly optimistic about the future of our business. This quarter proved the vibrancy of prestige beauty, its resiliency even in a difficult macro environment and the strength of our trusted brands and product innovations as markets sequentially recover from the prolonged pandemic.

展望未來，雖然我們降低了對第四季度的預期，但鑑於中國暫時受到 COVID 驅動的限制措施的影響，我們預計 2022 財年將再創紀錄。我們對業務的未來仍然非常樂觀。本季度證明了聲望美容的活力，即使在困難的宏觀環境中也能保持彈性，以及隨著市場從長期的大流行中逐步恢復，我們值得信賴的品牌和產品創新的實力。

I will now turn the call over to Tracey.

我現在將把電話轉給 Tracey。

Thank you, Fabrizio, and hello, everyone. Our third quarter net sales grew 9% organically despite the increased complexity and volatility caused by the pandemic and the invasion of Ukraine. Growth was broad-based across categories and markets as most regions across the world continue to recover and grow, albeit at different rates.

謝謝你，法布里齊奧，大家好。儘管大流行和烏克蘭入侵導致複雜性和波動性增加，但我們第三季度的淨銷售額有機增長了 9%。隨著全球大多數地區繼續復甦和增長，儘管速度不同，但各個類別和市場的增長基礎廣泛。

Sales in specialty-multi and freestanding retail stores led growth and online sales rose mid-single-digits. The inclusion of sales from the late May 2021 DECIEM investment added approximately 2 points to reported net sales growth, and currency was a headwind of approximately 1 point.

專賣店和獨立零售店的銷售額引領增長，在線銷售額增長中個位數。包含 2021 年 5 月下旬 DECIEM 投資的銷售額使報告的淨銷售額增長增加了約 2 個百分點，貨幣是約 1 個百分點的逆風。

From a geographic standpoint, organic net sales in our Europe, the Middle East and Africa region rose 18%. Growth was realized across most markets, channels and brands. Market growth was led by both the recovery in the largest Western markets as well as in key emerging markets like Turkey and India. All brick-and-mortar channels grew, led by double-digit growth in department stores, freestanding stores and specialty-multi stores. Organic sales online declined when compared to the prior year quarter where online sales benefited both from the pandemic-driven store closures and reduced store traffic. All product categories and most brands grew in the region, led by La Mer, Jo Malone London and M.A.C.

從地理角度來看，我們歐洲、中東和非洲地區的有機淨銷售額增長了 18%。大多數市場、渠道和品牌都實現了增長。市場增長由最大的西方市場以及土耳其和印度等主要新興市場的複蘇引領。在百貨商店、獨立商店和專賣店的兩位數增長帶動下，所有實體渠道均實現增長。與去年同期相比，在線有機銷售額下降，在線銷售額受益於大流行驅動的商店關閉和商店流量減少。在 La Mer、Jo Malone London 和 M.A.C.

Our global travel retail business again grew double digits despite the challenges that arose during the quarter. Asia is the largest region for our travel retail business, and sales in the key markets of China and Korea were very robust at retail for most of the quarter. However, there was a precipitous decline in Chinese travel in March as restrictions to contain COVID were increased in China. We continue to see a sharp increase in travel retail sales outside of Asia as traffic increased throughout Europe and the Americas.

儘管本季度出現了挑戰，但我們的全球旅遊零售業務再次實現了兩位數的增長。亞洲是我們旅遊零售業務最大的地區，在本季度的大部分時間裡，中國和韓國主要市場的零售銷售非常強勁。然而，由於中國增加了對遏制 COVID 的限制，3 月份中國旅行急劇下降。隨著整個歐洲和美洲的客流量增加，我們繼續看到亞洲以外的旅遊零售額急劇增長。

Net sales in the Americas rose 11% organically, with all markets contributing to growth. All product categories grew with particular strength in makeup and hair care. The 2 largest prestige makeup brands in the U.S., M.A.C and Clinique, outpaced overall category growth to gain share. Bobbi Brown and Tom Ford Beauty also gained share helping to further drive the makeup renaissance as more consumers continued their return to the workplace and resumed more social occasions.

美洲的淨銷售額有機增長了 11%，所有市場都為增長做出了貢獻。所有產品類別在化妝和護髮方面都特別強勁。美國最大的 2 個知名彩妝品牌 M.A.C 和 Clinique 的增長速度超過了整體品類的增長速度，從而獲得了份額。隨著越來越多的消費者繼續重返工作場所並恢復更多社交場合，Bobbi Brown 和 Tom Ford Beauty 也獲得了份額，進一步推動了化妝品的複興。

Our sales in specialty-multi and in freestanding retail stores strongly outperformed this quarter as consumers return to stores for shopping and services. The inclusion of sales from DECIEM added approximately 3 points to growth, and favorable currency movement contributed 1 point to sales growth in the region.

隨著消費者返回商店購物和服務，我們在本季度的專賣店和獨立零售店的銷售額表現強勁。將來自 DECIEM 的銷售額包括在內，為該地區的銷售額增長增加了約 3 個百分點，有利的貨幣變動為該地區的銷售額增長貢獻了 1 個百分點。

In our Asia Pacific region, organic net sales fell 4%, driven entirely by Greater China. For the quarter, net sales in Mainland China declined mid-single-digits. Following a strong Lunar New Year in February, sales declined in March as additional COVID restrictions impacted many cities, most notably Shanghai, where our distribution centers serving the entire country are located. The restriction sharply curtailed productivity at these facilities, affecting our ability to both receive product being shipped into the country and to fulfill demand across all channels of distribution. However, shipments should begin to normalize as restrictions ease.

在我們的亞太地區，有機淨銷售額下降了 4%，這完全是由大中華區推動的。本季度，中國大陸的淨銷售額下降了中個位數。繼 2 月份農曆新年強勁之後，3 月份的銷售額下降，因為額外的 COVID 限制影響了許多城市，尤其是上海，我們為全國服務的配送中心就位於上海。這些限制大大降低了這些設施的生產力，影響了我們接收運往該國的產品和滿足所有分銷渠道需求的能力。但是，隨著限制的放鬆，出貨量應該開始正常化。

Net sales in Hong Kong also declined throughout the quarter as the city took increasing measures to contain the virus. Partially offsetting these decreases with strong net sales growth in most other markets, including Japan, Malaysia, Thailand and Singapore. Online sales in Asia Pacific grew strong double digits as we continue to expand our brand reach across new platforms.

由於香港採取了越來越多的措施來控制病毒，香港的淨銷售額在整個季度也有所下降。大部分其他市場（包括日本、馬來西亞、泰國和新加坡）的強勁淨銷售額增長部分抵消了這些下降。隨著我們繼續在新平台上擴大品牌影響力，亞太地區的在線銷售額實現了強勁的兩位數增長。

Our gross margin improved 70 basis points compared to last year. Strategic price increases of approximately 4% combined with favorable currency and reduced obsolescence contributed to the increase in gross margin as well as the favorable impact of anniversary last year's under absorption of manufacturing overhead. This more than offset the impact of increased inflationary pressures in our supply chain, mainly in logistics and materials and increasing start-up costs for our new plant in Japan.

與去年相比，我們的毛利率提高了 70 個基點。大約 4% 的戰略性價格上漲，加上有利的貨幣和減少過時的情況，促成了毛利率的增加以及去年周年紀念日吸收製造費用不足的有利影響。這足以抵消我們供應鏈中通脹壓力增加的影響，主要是在物流和材料方面，以及我們在日本的新工廠的啟動成本增加。

Operating expenses decreased 40 basis points as a percent of sales. Our leverage of general and administrative expense was partially offset by increased shipping costs related to higher freight rates and more air shipments on increased sales volume. Additionally, as cities throughout China began tightening restrictions and traffic to Hainan slowed, we reduced certain expenses to correspond with slower retail traffic.

營業費用佔銷售額的百分比下降了 40 個基點。我們對一般和行政費用的槓桿作用被與更高的運費相關的運輸成本增加和銷量增加導致的更多空運部分抵消。此外，隨著中國各地城市開始收緊限制和前往海南的交通放緩，我們減少了某些費用以應對零售交通放緩。

Operating income rose 15% to $917 million, and our operating margin expanded 110 basis points to 21.6% in the quarter. Diluted EPS of $1.90 increased 17% compared to the prior year.

本季度營業收入增長 15% 至 9.17 億美元，營業利潤率擴大 110 個基點至 21.6%。攤薄後每股收益為 1.90 美元，較上年增長 17%。

During the quarter, we recorded $216 million of impairment to goodwill and other intangibles primarily related to Dr. Jart+, reflecting forecast for slower-than-expected growth in China and travel retail. We continue to believe in the growth potential of the brand, which has been impacted by the temporary COVID disruptions in Asia given its strong growth prior to the start of the pandemic as well as the growth seen in recovering markets.

在本季度，我們記錄了主要與 Dr. Jart+ 相關的商譽和其他無形資產減值 2.16 億美元，反映了對中國和旅遊零售增長低於預期的預測。我們繼續相信該品牌的增長潛力，鑑於其在大流行開始之前的強勁增長以及在復甦的市場中看到的增長，該品牌受到亞洲暫時 COVID 中斷的影響。

For the 9 months, we generated $1.97 billion in net cash flows from operating activities compared to $2.78 billion last year, which reflects investments in working capital to both support growth and mitigate some of the risk of supply chain disruptions as well as higher cash paid for taxes. This was partially offset by higher net income. We significantly increased our capital investment to $658 million to support the ongoing construction of our new manufacturing facility near Tokyo. Investments in our innovation center in Shanghai as well as investments in online and technology enhancements. And we returned $2.62 billion in cash to stockholders through a combination of share repurchases and dividends.

在這 9 個月中，我們從經營活動中產生了 19.7 億美元的淨現金流，而去年為 27.8 億美元，這反映了對營運資本的投資，以支持增長和減輕供應鏈中斷的一些風險以及支付更高的現金稅收。這部分被較高的淨收入所抵消。我們將資本投資大幅增加至 6.58 億美元，以支持我們在東京附近正在進行的新製造工廠的建設。對我們在上海的創新中心的投資以及對在線和技術改進的投資。我們通過股票回購和股息的組合向股東返還了 26.2 億美元的現金。

Turning now to our outlook. As you have heard and are aware, there have been 2 significant headwinds that have emerged since we last gave guidance in early February, increased COVID-related restrictions in China also impacting Hainan and the invasion of Ukraine. Our current guidance for the balance of this year reflects continued momentum in the Americas and EMEA excluding travel retail as well as the continuation of lockdowns and corresponding distribution constraints in China through at least the first half of our fourth quarter. While we expect continued growth at retail in both Mainland China and Hainan, the severity of the distribution constraints we are experiencing are expected to result in a meaningful decline in net sales for these areas for the quarter. We are cautiously optimistic that we will be able to fulfill the majority of our orders in time for our planned 6.18 activities. The elimination of sales in Russia and Ukraine has reduced expected fourth quarter sales growth by approximately 120 basis points.

現在轉向我們的前景。正如您所聽到並知道的那樣，自我們上次於 2 月初提供指導以來，出現了兩個重大不利因素，中國增加的與 COVID 相關的限制也影響了海南和烏克蘭的入侵。我們目前對今年餘額的指導反映了美洲和歐洲、中東和非洲地區（不包括旅遊零售）的持續增長勢頭，以及至少在我們第四季度上半年在中國繼續實行封鎖和相應的分銷限制。雖然我們預計中國大陸和海南的零售業將繼續增長，但我們所經歷的分銷限制的嚴重性預計將導致本季度這些地區的淨銷售額顯著下降。我們對能夠在計劃的 6.18 活動中及時完成大部分訂單持謹慎樂觀的態度。俄羅斯和烏克蘭的銷售取消使第四季度的預期銷售增長降低了約 120 個基點。

At the same time, we delivered outstanding results for the first 9 months of the fiscal year, with greater diversification of our growth drivers. Our geographic diversity is a tremendous asset, and we expect our multiple engines of growth to continue, including the ongoing recovery of the Americas, Western Europe and most markets in Asia. We expect to also deliver strong margin improvement for the year. The benefit of our strategic pricing actions this year, along with agility and our cost management are helping to offset the initial effects of increasing inflation throughout this fiscal year. We plan to continue to invest in the recovery, support innovation and assuming current disruptions abate, fuel upcoming key shopping moments in the quarter, like 6.18 in China and Mother's Day.

與此同時，我們在本財年的前 9 個月取得了出色的業績，增長動力更加多元化。我們的地域多樣性是一項巨大的資產，我們預計我們的多種增長引擎將繼續存在，包括美洲、西歐和亞洲大多數市場的持續復甦。我們預計今年也將實現強勁的利潤率改善。今年我們的戰略定價行動的好處，連同我們的敏捷性和我們的成本管理，正在幫助抵消整個財政年度通貨膨脹加劇的初步影響。我們計劃繼續投資於復蘇，支持創新，並假設當前的干擾減弱，為本季度即將到來的關鍵購物時刻提供動力，例如中國的 6.18 和母親節。

With these assumptions as our backdrop for the full fiscal year, organic net sales are now forecasted to grow 5% to 7%. This range excludes approximately 2 points from acquisitions, divestitures and brand closures, primarily the inclusion of DECIEM, and currency is forecasted to be neutral. Diluted EPS is expected to range between $7.05 and $7.15 before restructuring and other charges. This includes approximately $0.05 of accretion from currency translation and $0.02 dilution from DECIEM. In constant currency, we expect EPS to rise by 8% to 10%. These expectations imply margin expansion of approximately 70 basis points, including dilution of 40 basis points from DECIEM this year.

以這些假設作為我們整個財年的背景，現在預計有機淨銷售額將增長 5% 至 7%。該範圍不包括收購、剝離和品牌關閉的大約 2 個點，主要包括 DECIEM，貨幣預計為中性。在重組和其他費用之前，稀釋後的每股收益預計在 7.05 美元至 7.15 美元之間。這包括大約 0.05 美元的貨幣換算增值和 0.02 美元的 DECIEM 稀釋。按固定匯率計算，我們預計每股收益將增長 8% 至 10%。這些預期意味著利潤率將擴大約 70 個基點，包括今年 DECIEM 稀釋 40 個基點。

In closing, we managed extremely well through an increasingly complex environment in our third quarter, and these complexities are expected to meaningfully impact our fourth quarter. Despite this, we continue to expect to deliver a very strong year with above-average organic top line growth, excellent margin expansion and solid EPS growth. We are confident that we can continue to manage through the present temporary headwinds and be well prepared for accelerated momentum when the pandemic effects ease.

最後，我們在第三季度日益複雜的環境中管理得非常好，預計這些複雜性將對我們的第四季度產生有意義的影響。儘管如此，我們仍然預計將實現非常強勁的一年，有機頂線增長高於平均水平，利潤率擴張出色，每股收益增長穩健。我們有信心，我們可以繼續克服目前的暫時逆風，並為大流行影響緩解時的加速勢頭做好充分準備。

And that concludes our prepared remarks. We'll be happy to take your questions at this time.

我們準備好的發言到此結束。我們很樂意在這個時候回答您的問題。

(Operator Instructions) Our first question today comes from Lauren Lieberman from Barclays.

（操作員說明）我們今天的第一個問題來自巴克萊的 Lauren Lieberman。

Great. Tracey, for retail, just hoping to get a little bit more visibility, if you will, to like the on-the-ground inventory dynamic in China currently and how you're thinking about that, I guess, for the first half of the quarter. So if I were to go on any of the e-commerce sites or to a store, what do I see now? Am I able to place an order online? Or does it say out of stock? If I go to a store, is there inventory? Because I'm trying to piece together the comment, Tracey, that you thought by 6.18 you'd be caught up, but knowing that Shanghai is the way kind of in and out, and you're assuming that's constrained for the first half of the quarter? I'm just trying to put those pieces together for that fourth quarter outlook.

偉大的。特蕾西，對於零售業，如果你願意的話，只是希望能獲得更多的知名度，以喜歡目前中國的實地庫存動態以及你對這一點的看法，我猜，我想，在上半年四分之一。因此，如果我要訪問任何電子商務網站或商店，我現在會看到什麼？我可以在線下訂單嗎？還是說缺貨？如果我去商店，有庫存嗎？因為我試圖拼湊評論，Tracey，你認為到 6.18 你會被趕上，但知道上海是進出的方式，你假設這在上半年受到限制季度？我只是想為第四季度的展望把這些部分放在一起。

Thanks, Lauren. So it depends really on the SKU, right? And we do have -- we've had disruptions now for the last several weeks as it relates to supply chain. We certainly have had inventory in trade. But to your point, we have had some difficulties certainly shipping product to consumers. So in some cases, it's taking longer than what it normally would. And in other cases, we haven't been able to ship at all. We believe that based on some of the things that we're hearing on the ground that the market might open up in mid-May, but it's very -- it's uncertain right now. So we obviously had to put our assumptions together as it relates to the fourth quarter. And our assumptions assume that things will start to open up in mid-May. And then there will be a catch-up. So we do have the product in and around China for 6.18. It's a matter of getting it to our distribution center and then obviously, getting it out to customers in time.

謝謝，勞倫。所以這真的取決於SKU，對吧？而且我們確實有 - 在過去的幾周里，我們現在遇到了與供應鏈有關的中斷。我們當然有貿易存貨。但就您而言，我們在向消費者運送產品方面確實遇到了一些困難。因此，在某些情況下，它需要的時間比通常情況下要長。在其他情況下，我們根本無法發貨。我們相信，根據我們聽到的一些消息，市場可能會在 5 月中旬開放，但現在非常不確定。因此，我們顯然必須將我們的假設放在一起，因為它與第四季度有關。我們的假設假設事情將在 5 月中旬開始開放。然後會有一個追趕。所以我們在中國及周邊地區確實有 6.18 的產品。問題是先把它送到我們的配送中心，然後再及時送到客戶手中。

Your next question comes from the line of Steve Powers from Deutsche Bank.

您的下一個問題來自德意志銀行的 Steve Powers。

Great. I'm sure there'll be more questions on China, but I actually wanted to talk about the Americas. Growth there was strong, as you called out, but it came in a little bit below our expectations. And on a 3-year basis, local currency growth, I believe, is averaging negative 3% versus pre-pandemic levels, which is a deceleration and a reversal from what we saw in the first half of the fiscal year. That's obviously -- that negative 3% CAGR is with the addition of DECIEM.

偉大的。我敢肯定會有更多關於中國的問題，但我實際上想談談美洲。正如您所說，那裡的增長強勁，但略低於我們的預期。我認為，在 3 年的基礎上，與大流行前的水平相比，本幣平均增長率為負 3%，這與我們在本財年上半年看到的情況相比出現了減速和逆轉。這很明顯——加上 DECIEM，3% 的複合年增長率為負。

So I just want a little bit more perspective on how you're viewing the recovery in the Americas, what may have caused that fluctuation in multiyear growth first half versus what we saw in the third quarter and just how to think about the progression over the balance of the calendar year.

因此，我只想更深入地了解您如何看待美洲的複蘇，與我們在第三季度看到的情況相比，可能導致上半年多年增長波動的原因，以及如何考慮過去幾年的進展日曆年的餘額。

Yes, sure. No, actually, we believe our North America business is actually accelerating and is in very good trend. Obviously, the sales by quarter may vary for a series of things, including presence of holidays or presence of specific brands, innovations, et cetera. But in general, we had a plus 24% in the last 12 months and plus 10% in quarter 3. If you see in that quarter 3, Clinique is ranking #1 overall brand, M.A.C #1 in makeup. Bobbi Brown, Tom Ford, M.A.C, The Ordinary, they're all growing share.

是的，當然。不，實際上，我們相信我們的北美業務實際上正在加速並且處於非常好的趨勢。顯然，按季度的銷售額可能會因一系列因素而有所不同，包括假期的存在或特定品牌的存在、創新等。但總的來說，我們在過去 12 個月中增長了 24%，在第三季度增長了 10%。如果你在第三季度看到，倩碧在整體品牌中排名第一，在化妝品方面 M.A.C 排名第一。 Bobbi Brown、Tom Ford、M.A.C、The Ordinary，它們的份額都在增長。

We are doing -- we are executing well the strategy of better covering all U.S. multi-ethnic consumer groups. We have improved our distribution mix, which now is more focused on high-growth, high-profit areas in general, particularly we have improved our online penetration during COVID, and we are maintaining it now.

我們正在做——我們正在很好地執行更好地覆蓋所有美國多民族消費者群體的戰略。我們已經改進了我們的分銷組合，現在更專注於一般的高增長、高利潤領域，特別是我們在 COVID 期間提高了在線滲透率，我們現在正在維護它。

We have reestablished strong brick-and-mortar productivity, which was heavily hit by COVID, also closing 40 freestanding store and exiting a number of closing department stores doors. We are rolling out successfully the Ulta, Target, the Sephora called new doors, which are proving by the way to reach new consumers. We have a stronger M.A.C and Clinique performance business, which in North America are, frankly, the 2 key brands that are driving the overall size of the growth.

我們重新建立了強大的實體生產力，該生產力受到 COVID 的嚴重打擊，還關閉了 40 家獨立商店並退出了一些關閉的百貨商店大門。我們正在成功推出 Ulta、Target 和絲芙蘭，稱為新門，這些都證明可以接觸到新的消費者。我們擁有更強大的 M.A.C 和 Clinique 性能業務，坦率地說，這在北美是推動整體規模增長的兩個關鍵品牌。

We have some strong innovation successes in quarter 3. For example, MACStack, which we had mentioned in the prepared remarks, which is so far an extraordinary success.

我們在第三季度取得了一些強大的創新成功。例如，我們在準備好的評論中提到的 MACStack，迄今為止取得了非凡的成功。

And I would underline, we are in a market where prestige has been recovery much faster pace than mass, which is exactly proving also that we are back into sourcing from mass new consumers, particularly with our entry prestige pricing brands like M.A.C, like Clinique, like The Ordinary. We also added with DECIEM acquisitions The Ordinary brand, which is the fourth -- #4 in prestige U.S. brands already in skin care, which is an extraordinary position and ranking first in units in many of the retail partners where they're sold.

我要強調的是，我們處於一個聲望恢復速度比大眾快得多的市場，這也正好證明我們正在重新從大眾新消費者那裡採購，特別是我們的入門聲望定價品牌，如 M.A.C，如倩碧，像普通人一樣。我們還添加了 DECIEM 收購的 The Ordinary 品牌，該品牌在已經在護膚領域的美國知名品牌中排名第四 - 第四，這是一個非凡的地位，在許多銷售它們的零售合作夥伴中排名第一。

And on top on speaking about distribution, 1/3 of our North America business now is in direct-to-consumer model with freestanding store brand.com and certain online activity, really, including social media direct activities, which give us a lot of more data, consumer data and understanding of the consumer that we ever had in the past.

最重要的是談到分銷，我們北美業務的 1/3 現在是直接面向消費者的模式，擁有獨立的商店 brand.com 和某些在線活動，真的，包括社交媒體直接活動，這給了我們很多我們過去擁有的更多數據、消費者數據和對消費者的了解。

So it's been years of reshaping our North America business in a condition that we believe today is strong and is much more stronger platform for continued growth and continued market share development of most of our brands in the future as well. So we are very positive of our North America trend and also very proud of today having a strong and motivated team, which is in action and which is driving the business forward.

因此，多年來我們一直在重塑我們的北美業務，我們相信今天的情況是強大的，並且是未來我們大多數品牌的持續增長和持續市場份額發展的更強大平台。因此，我們對我們的北美趨勢非常積極，也為今天擁有一支強大且積極進取的團隊感到非常自豪，該團隊正在行動並推動業務向前發展。

Your next question comes from the line of Nik Modi from RBC Capital.

您的下一個問題來自 RBC Capital 的 Nik Modi。

For retail, I wanted to get maybe an assessment on M.A.C in the U.S. because, I guess, even prior to the pandemic, the brand was under a lot of pressure. It seems like things are looking better now, but I didn't know if that's a function of just improved mobility and a makeup category lift overall or if there's an improvement in the underlying fundamentals of that brand. If you could just help kind of frame the situation for us, that would be helpful.

對於零售業，我想對美國的 M.A.C 進行評估，因為我想，即使在大流行之前，該品牌就承受著很大的壓力。現在看起來情況似乎好多了，但我不知道這是否只是移動性的提高和整體化妝品類別的提升，還是該品牌的基本面有所改善。如果您能幫助我們了解情況，那將很有幫助。

Yes. I think M.A.C is really in a strong recovery trend and is, first of all, the makeup category in general, as I explained during the prepared remarks, is in what we call the renaissance, meaning they use educations of makeup coming back, basically back to office, back to restaurants, back to parties, back to vacations, all what we have seen gradually coming back with the COVID retreating at least up to a certain extent. This is working.

是的。我認為 M.A.C 確實處於強勁的複蘇趨勢中，首先，正如我在準備好的評論中解釋的那樣，總體而言，化妝類別處於我們所說的文藝復興時期，這意味著他們使用化妝教育回歸，基本上回歸回到辦公室，回到餐館，回到聚會，回到假期，我們所看到的一切都隨著新冠病毒的消退而逐漸回歸，至少在一定程度上。這是有效的。

And with the user education coming back, the entire category is flourishing again. Plus, as I mentioned, it's important that makeup is also linked to mood, meaning the joy of interpreting personalities, interpreting yourself. So a most positive sense of recovery from COVID has been developed in the last several months, and this has benefited the category. So M.A.C is the market leader in the prestige in quarter 3. And so obviously, it's benefiting of the overall category recovery.

隨著用戶教育的回歸，整個品類再次蓬勃發展。另外，正如我所提到的，化妝也與心情有關，這意味著詮釋個性、詮釋自己的樂趣。因此，在過去幾個月中，人們形成了一種從 COVID 中恢復的最積極的感覺，這使該類別受益。因此，M.A.C 是第三季度聲望的市場領導者。顯然，它受益於整體類別的複蘇。

Second, the brand has now a better mix in distribution, has made important distribution choices. So it's reaching consumers better, is refocusing well on the multi-ethnic consumers have always been at the core of this brand and has extraordinary new creative power and ability to speak the M.A.C values to the consumers in new fresh ways.

其次，品牌現在在分銷方面有了更好的組合，做出了重要的分銷選擇。因此，它更好地接觸消費者，重新聚焦於多民族消費者，一直是這個品牌的核心，具有非凡的新創造力和以全新方式向消費者傳達 M.A.C 價值觀的能力。

And innovation is back, meaning not only innovation in taste, style, looks that's been always the core of the brand, but also innovation in R&D, new ideas of performance like MACStack, which is, frankly, a technical product innovation as well. which builds on an idea, which is so close to the core of M.A.C, which is makeup artistry, which is the ability to build mascara on your lashes in different stacks, and so allowing a different makeup artist interpretation or how much, how long and which locations, so the ultimate customization in mascara. That's a big deal. The consumer is answering fast and already is a leading mascara in North America and in any other market where it has been so far launched. So M.A.C is in a strong recovery trend, and we are very proud of the work of our team there.

而創新又回來了，這不僅意味著在品味、風格、外觀方面的創新一直是品牌的核心，而且還意味著在研發方面的創新，以及像 MACStack 這樣的性能新理念，坦率地說，這也是一種技術產品創新。它建立在一個想法上，它非常接近 M.A.C 的核心，即化妝藝術，即能夠在你的睫毛上以不同的層次塗抹睫毛膏，因此允許不同的化妝師解釋或多少、多長時間和哪個位置，所以睫毛膏的終極定制。這是一件大事。消費者反應迅速，並且已經成為北美和迄今為止推出的任何其他市場的領先睫毛膏。因此，M.A.C 正處於強勁的複蘇趨勢中，我們為我們團隊在那裡的工作感到非常自豪。

Your next question comes from the line of Dara Mohsenian from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Dara Mohsenian。

So just returning to China, a, just short-term detail-wise, it sounds like, hopefully, some of the supply chain restrictions could open up in mid-May. But if that's not the case, can you just discuss contingency plans in a bit more detail that Tracey touched on? Are you comfortable you can meet demand for the June holidays if the Shanghai restrictions continue? Is it more top line risk or more a question of profitability if you have to reconfigure supply chain to get product there?

所以只是回到中國，只是短期的細節，聽起來，希望一些供應鏈限制可以在 5 月中旬開放。但如果不是這樣，您能否更詳細地討論特蕾西談到的應急計劃？如果上海限制繼續，您是否可以滿足六月假期的需求？如果您必須重新配置供應鏈以將產品送到那裡，是更多的頂線風險還是更多的盈利問題？

And then just be longer term, Fabrizio, assuming your supply chain issues do end up being outsized versus the peer set, it sounds like maybe that's the case based on some of the competitor commentary so far, but obviously, it's an issue across the board. Just any implications to your retailer relationships in China or longer-term share and how you think about that?

然後從長遠來看，Fabrizio，假設您的供應鏈問題最終確實與同行相比變得過大，聽起來可能是基於迄今為止的一些競爭對手評論的情況，但顯然，這是一個全面的問題.對您在中國的零售商關係或長期份額有何影響？您對此有何看法？

Yes, Dara, so I'll start. There are 2 things going on in the fourth quarter that are impacting us. Given the pandemic management in China right now, there is also a slowdown in traffic to Hainan. And so travel retail is being impacted as well in the fourth quarter, specifically Hainan along with China.

是的，達拉，所以我要開始了。第四季度有兩件事正在影響我們。鑑於目前中國的大流行管理，到海南的交通也有所放緩。因此，旅遊零售在第四季度也受到了影響，特別是海南和中國。

As you saw in the third quarter when traffic slowed in our distribution and online, we pulled back on expenses, and we would be prepared to do the same in the fourth quarter if our assumptions change. The other thing that we are looking to do is have a temporary distribution center outside of the area that is most affected and hopefully, we'll mitigate some of the pressure on our Shanghai campus.

正如您在第三季度看到的那樣，當我們的分銷和在線流量放緩時，我們縮減了開支，如果我們的假設發生變化，我們將準備在第四季度做同樣的事情。我們想做的另一件事是在受影響最嚴重的地區之外建立一個臨時配送中心，希望我們能減輕上海園區的一些壓力。

So those are a couple of the things that we're planning to do as our plan B, if you will, if the market does not open up in the middle of May. But we are encouraged by some recent signs that we've seen in terms of -- or heard in terms of some of the cases coming down. But it's quite volatile, Dara, so this is the best estimate that we have at this time of the situation and what we could deliver in Q4.

因此，如果您願意，如果市場在 5 月中旬沒有開放，這些是我們計劃作為 B 計劃做的幾件事。但我們對最近的一些跡象感到鼓舞，這些跡象表明我們已經看到或聽到了一些案件的下降。但它非常不穩定，達拉，所以這是我們在這種情況下的最佳估計，也是我們在第四季度可以交付的最佳估計。

Yes. And on your question on -- you asked about retailer relationships. We are in China for the long term and completely dedicated to continue to develop the market and serve our partners there. We are going to open soon our R&D center in China, which is a very big event and a very manifestation of long-term determination to continue to be locally relevant and serving the specific needs of this market. And obviously, we are going to do as soon as the COVID restrictions will allow us to proceed.

是的。關於您的問題-您詢問了零售商關係。我們長期在中國，並完全致力於繼續開發市場並為我們的合作夥伴提供服務。我們即將在中國開設我們的研發中心，這是一個非常大的事件，也是長期決心繼續與當地相關並服務於這個市場的特定需求的一個非常體現。顯然，一旦 COVID 限制允許我們繼續進行，我們就會這樣做。

So -- and the other thing I want to clarify that the China consumer demand underlining this moment of COVID restrictions is strong. And now it comes really from a multichannel online where it's more than 50% of the Mainland sales. We grew double digit in quarter 3 despite what Tracey explained that in the last 15 days of March, we could not ship existing orders. That's the key point. We couldn't ship orders that we had already in our hands, both from retailers and consumers online. And so obviously, that's temporary and this happened to us in the past, in the United States, in Europe during the pandemic lockdowns.

所以 - 我想澄清的另一件事是，強調這一時刻 COVID 限制的中國消費者需求強勁。而現在它真正來自多渠道在線，佔內地銷售額的 50% 以上。儘管 Tracey 解釋說，在 3 月的最後 15 天，我們無法運送現有訂單，但我們在第三季度實現了兩位數的增長。這是關鍵點。我們無法運送我們已經在我們手中的訂單，無論是來自零售商還是在線消費者。很明顯，這是暫時的，這在過去發生在我們身上，在美國，在歐洲，在大流行的封鎖期間。

So we know how this works and how this happens, and we know also how to rebound when this finishes because it's not about consumer demand. It's about access to consumers that has changed dramatically in a very short period of time. But the online was very, very strong, we had a very strong February. And despite that, we grew market share in quarter 3 online, which is store despite the inability in the second half of March to serve consumers.

所以我們知道這是如何運作的以及這是如何發生的，我們也知道當這一切結束時如何反彈，因為這與消費者需求無關。這是關於在很短的時間內發生了巨大變化的消費者的訪問。但是在線非常非常強大，我們有一個非常強大的二月。儘管如此，我們在第三季度的在線市場份額有所增長，儘管 3 月下半月無法為消費者提供服務，但這是商店。

Hainan was strong until mid-March, but then Hainan had a very strong decline of traffic. We estimate 60% to 70% in the second part of March. And in April, we saw 80% traffic reduction in Hainan. So that's what is reflected in our quarter 4. But also, we have seen historically that also the bounce back can be very strong because when these restrictions finish, people travel domestically very fast and very happily. And so the confidence into Hainan future is unchanged, actually increased given the incredible development of the place and the confidence in online is very strong also because together with the continuous success with Tmall, we are also now expanding and having good expansion online with JD, (inaudible) with in digital marketing with TikTok activations. There are so many other things, which are in the making.

海南在 3 月中旬之前表現強勁，但隨后海南的客流量出現了非常強勁的下降。我們估計在 3 月下旬會達到 60% 到 70%。 4 月份，我們看到海南的客流量減少了 80%。這就是我們第 4 季度所反映的情況。而且，我們從歷史上看到，反彈也可能非常強勁，因為當這些限制結束時，人們在國內旅行的速度非常快，而且非常愉快。所以對海南未來的信心沒有改變，實際上增加了這個地方令人難以置信的發展，對在線的信心非常強大，也因為加上天貓的持續成功，我們現在也在擴展，並且與京東有很好的在線擴展， （聽不清）通過 TikTok 激活進行數字營銷。還有很多其他的事情正在醞釀中。

Brick-and-mortar was the most impacted during the restrictions. And that's -- so as of mid-March was -- and the entire month of April was really impacted in the areas where there were restrictions. It was not everywhere, but was definitely in Shanghai, where we have a lot, as we discussed, the distribution center.

在限制期間，實體店受到的影響最大。這就是 - 截至 3 月中旬 - 整個 4 月份在有限制的地區都受到了真正的影響。它不是無處不在，但絕對是在上海，正如我們所討論的那樣，我們有很多配送中心。

So also I want to clarify that the long-term fundamental of global prestige beauty in China and in travel retail China remains very, very good. Actually, I personally have never been more enthusiastic about the opportunity. When the market rebounds also should be much more profitable as we have seen in the U.S. because we -- because the market will rebound in travel retail, in online, in more productive brick-and-mortar and a more productive fragrance businesses than in any other region of the world because it's high-end fragrances is a much bigger percentage of the total development of the category.

因此，我還想澄清一下，全球聲望美妝在中國和中國旅遊零售業的長期基本面仍然非常非常好。實際上，我個人從未對這個機會如此熱衷。當市場反彈時，我們在美國看到的利潤也應該會更高，因為我們——因為市場將在旅遊零售、在線、生產力更高的實體和香水業務中反彈，比任何其他行業都要好。世界其他地區，因為它的高端香水在該類別的總發展中所佔的比例要大得多。

Also, we continue to invest in China, as Tracey has clarified. And obviously, we will tailor the investment to the level of access to consumers that the restriction will permit, but we will invest in the growth in the innovation center. There will be more brands in China coming soon, additional cities coverage as soon as the permissions the restrictions will allow. I spoke already about the strongest plans with our partner Tmall and further diversification of the coverage in the country. The category growth expansion beyond skin care, makeup, fragrances are coming up strongly. The supply chain that needs to be further diversified Tracey has alluded to, but we had already planned for fiscal year 2023 and '24 to have more regional distribution centers that we will deploy, but in the meantime, we'll look for certain temporary activity.

此外，正如 Tracey 所澄清的那樣，我們將繼續在中國投資。顯然，我們將根據限制允許的消費者准入水平調整投資，但我們將投資於創新中心的增長。很快就會有更多的品牌在中國出現，只要限制允許，就會覆蓋更多的城市。我已經與我們的合作夥伴天貓談到了最強大的計劃以及該國覆蓋範圍的進一步多樣化。護膚、彩妝、香水以外的品類增長勢頭強勁。 Tracey 提到了需要進一步多樣化的供應鏈，但我們已經計劃在 2023 財年和 24 財年部署更多的區域配送中心，但與此同時，我們會尋找一些臨時活動.

Hainan expansion is also a story. There are new mega counters getting expanded in Hainan as we speak for -- not only for us, also for competition, but are extraordinarily new opportunities, which we are in the making temporary. Obviously, in this moment, as I said, there is little traffic. But in the -- for example, in July-September period, there will be more of discount expanded.

海南擴張也是一個故事。正如我們所說，海南有新的大型專櫃正在擴張——不僅是為了我們，也是為了競爭，而且是非常新的機會，我們正在創造暫時的機會。顯然，在這一刻，正如我所說，幾乎沒有流量。但在——例如，在7-9月期間，會有更多的折扣擴大。

The expectation for 6.18, assuming that the logistics can be resolved, is pretty strong. And also, I want to underline that we hear that it's very likely there will be more economic stimulus ahead in the country that will further develop consumptions in the next 12 to 18 months. So I just want to underline, I hope it was clear that we are really trying to be as prudent and objective as possible in reflecting the COVID restrictions. But we remain absolutely determined to continue to build our China and China TR businesses.

假設物流可以解決，對 6.18 的預期相當強烈。此外，我想強調的是，我們聽說該國很可能會出台更多經濟刺激措施，這將在未來 12 至 18 個月內進一步發展消費。因此，我只想強調一下，我希望很明顯，我們確實在努力盡可能謹慎和客觀地反映 COVID 限制。但我們仍然絕對決心繼續建立我們的中國和中國 TR 業務。

Your next question comes from the line of Andrea Teixeira from JPMorgan.

您的下一個問題來自摩根大通的 Andrea Teixeira。

Fabrizio, you mentioned that you're comfortable when to fulfill when you're able to. So I was hoping to see what was the impact in volumes of orders that were made online in China for your organic growth. And also just a clarification on Tracey's comments on the pricing front with, I think, a 400 basis point impact of pricing in the quarter. So I was hoping to hear what is the rollover impact on the carryover into the fourth quarter and the mix impact. I'm assuming the mix was a negative given that you're selling less -- on a relative basis, you're growing less in skin care. Hope you share all of those.

Fabrizio，你提到當你能做到的時候，你很舒服。因此，我希望了解中國在線訂單量對您的有機增長有何影響。並且只是澄清了特蕾西關於定價方面的評論，我認為本季度定價的影響為 400 個基點。因此，我希望聽到對第四季度結轉的滾動影響以及混合影響。我假設這種組合是負面的，因為你的銷售量減少了——相對而言，你在護膚品方面的增長減少了。希望你分享所有這些。

Yes. So let me start, Andrea, with the pricing. My 400 basis points really was for the second half of the year. We started the year taking 3.5% of pricing increase. And typically, we take most of our pricing increases at the beginning of our fiscal year. We did take a second price increase in January. So the impact year-over-year for our second half is 4% pricing relative to prior year. And we expect to, in our upcoming -- the beginning of our upcoming fiscal year in July, take additional pricing. So -- and that pricing is strategic between levels within the tiers of our categories.

是的。安德里亞，讓我從定價開始。我的 400 個基點確實是下半年的。今年年初，我們收取了 3.5% 的價格漲幅。通常，我們會在財政年度開始時承擔大部分價格上漲。我們確實在 1 月份進行了第二次提價。因此，我們下半年的同比影響是與上一年相比定價 4%。我們預計，在即將到來的 7 月即將到來的財年開始之際，我們將採取額外的定價。所以 - 定價在我們類別的層級之間具有戰略意義。

So yes, skincare or higher-priced skincare might take higher price pricing, our lower-priced skin care would take lower price increases. It's very much dependent on the market, the currency, the inflation. There's a very sophisticated model that we use to determine what pricing for our various brands. So yes, we will have lower skin care sales in the fourth quarter. But on average, the pricing increases that we've taken will still be around 4%, and we do expect that they would cover the inflation that we are experiencing at the moment.

所以是的，護膚品或價格較高的護膚品可能會採取更高的價格定價，我們的低價護膚品會採取較低的價格上漲。這在很大程度上取決於市場、貨幣和通貨膨脹。我們使用一個非常複雜的模型來確定我們各個品牌的定價。所以是的，我們在第四季度的護膚品銷售額將會下降。但平均而言，我們採取的價格上漲仍將保持在 4% 左右，我們確實希望它們能夠覆蓋我們目前正在經歷的通貨膨脹。

And answering the first part of your question, which is how much we could not ship. Frankly, I cannot distinguish the online versus the brick-and-mortar. But I can tell you that as of March 15, when we couldn't for 15 days of the quarter, ship the orders we had, the order we had in our hands that we did not ship in the moment were 2.5 points of growth for the entire quarter. So a substantial amount of shipments. And then April also and the beginning of May also, we had limited capacity shipments.

並回答您問題的第一部分，即我們無法運送多少。坦率地說，我無法區分在線和實體店。但我可以告訴你，截至 3 月 15 日，當我們在本季度的 15 天內無法發貨時，我們手上的訂單我們目前沒有發貨的訂單增長了 2.5 個百分點整個季度。所以出貨量很大。然後 4 月和 5 月初也是，我們的出貨量有限。

And also importantly, in the quarter 3 numbers that you see, the impact of the pandemic was mainly reflected in the Mainland China impact, while TR had a very strong quarter despite there was less traffic in the second part of March. So somehow ended up with higher stocks is in our assumptions. And then in the quarter 4 expectation, there is a bigger proportion of the impact of the reduced traffic in Hainan than there is, frankly, any impact in China. And so that's also maybe give you a bit more light on our assumptions in this very difficult situation, frankly, to interpret in a detailed level given the very high volatility.

同樣重要的是，在您看到的第三季度數據中，大流行的影響主要體現在中國大陸的影響上，而 TR 的季度表現非常強勁，儘管 3 月下旬的流量有所減少。因此，我們的假設以某種方式以更高的股票告終。然後在第四季度的預期中，坦率地說，海南交通減少的影響比中國的任何影響都大。因此，坦率地說，在這種非常困難的情況下，這也可能讓您更加了解我們的假設，以便在波動性非常高的情況下進行詳細解釋。

Your next question comes from the line of Bryan Spillane from Bank of America.

您的下一個問題來自美國銀行的 Bryan Spillane。

Fabrizio, you mentioned in the prepared remarks or maybe in the Q&A, just maybe an expectation that there could be some stimulus in China. And I guess one of the questions we've got this morning was whether or not any of the softness that you've seen in China is all connected to the consumer feeling the impact of the economy slowing or recession risk. So can you just touch on that a little bit just in terms of whether or not you've seen any sort of impact on demand or any consumer behavior patterns based on the economy slowing in China?

法布里齊奧，你在準備好的評論中或者在問答中提到，也許只是期望中國可能會有一些刺激措施。我想我們今天早上遇到的一個問題是，你在中國看到的任何疲軟是否都與消費者感受到經濟放緩或衰退風險的影響有關。那麼，您能否僅談談中國經濟放緩對需求或任何消費者行為模式的影響？

No. So far, we are not seeing any impact in this area, also because -- not only because, as I said, the demand remained robust, and you can look at the demand -- you need to look at the demand in China in this moment since when global COVID started mainly, since when Chinese started traveling internationally less. You need to look at it like the brick-and-mortar in China, the online in China and Hainan. The combination of these 3 has been very, very strong, even if you look at our quarter 3 and you put together the results in TR together with the results in Mainland China online, as I said before, we were growing market share and growing double digit and the brick-and-mortar very soft moment. But when you put it all together, you see demand growth.

不。到目前為止，我們在這一領域沒有看到任何影響，還因為——正如我所說，不僅因為需求仍然強勁，而且你可以看看需求——你需要看看中國的需求在這個時刻，自從全球 COVID 主要開始以來，自從中國人開始減少國際旅行以來。你需要把它看成中國的實體店、中國的網上商店和海南。這三者的結合非常非常強大，即使您查看我們的第三季度並將 TR 的結果與中國大陸的在線結果放在一起，正如我之前所說，我們的市場份額正在增長，並且增長了一倍數字和實體店非常柔軟的時刻。但是當你把它們放在一起時，你會看到需求增長。

When you look only Mainland China or only Hainan in certain moments without -- you may see different patterns by channel, but the total Chinese consumption has been very, very solid for us, for the industry, for competition in general.

當你在某些時候只看中國大陸或只看海南時——你可能會看到不同的渠道模式，但中國的總消費對我們來說非常非常穩固，對於整個行業來說，對於整個競爭來說。

The other important thing to clarify that this is not changing also in the composition. For example, the most important segment in this moment in the China demand is high-end luxury brands. So both in our portfolio, brands like La Mer or Tom Ford or in our competitive portfolio or within our portfolio within a brand like Lauder, the performance of Re-Nutriv, which is the high-end part of the brand. So everywhere, the high luxury part is doing better in growth than any other part. This doesn't suggest that the consumers are worried by the economy. This suggests the consumers are actually looking for high performance and strong experiences more and more in this moment. Said this, there is obviously a lower economy than expectation in this moment, but also, there is a lot of trust in the possibility of economic stimulus and in the possibilities of restarting stronger economic development. So I believe that the consumer sentiment is still overall solid.

另一個重要的事情是要澄清這在組成中也沒有改變。例如，目前中國需求中最重要的部分是高端奢侈品牌。因此，無論是在我們的產品組合中，像 La Mer 或 Tom Ford 這樣的品牌，還是在我們的競爭產品組合中，或者在我們的產品組合中，像 Lauder 這樣的品牌中，Re-Nutriv 的表現都是該品牌的高端部分。因此，在任何地方，高級奢侈品部分的增長都比其他任何部分都好。這並不表明消費者對經濟感到擔憂。這表明消費者在這一刻實際上越來越尋求高性能和強大的體驗。話雖如此，此時的經濟顯然低於預期，但也對經濟刺激的可能性以及重啟經濟強勁發展的可能性充滿信心。因此，我認為消費者情緒總體上仍然穩固。

Your next question comes from the line of Korinne Wolfmeyer from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Korinne Wolfmeyer。

Kind of expanding on that last question on consumer sentiment more broadly. How have the recent developments macro-wise affect or kind of changed your viewpoint or impacted your viewpoint on the resiliency of prestige beauty as a category more broadly geographically both here in the U.S. and in EMEA and in APAC? We've seen these consumer-centric numbers start to get a little bit depressed over the past few weeks. So just wondering how you're viewing the resiliency of prestige beauty in these market dynamics.

更廣泛地擴展了關於消費者情緒的最後一個問題。在美國、歐洲、中東和非洲以及亞太地區，最近的發展如何從宏觀上影響或改變了你的觀點，或影響了你對聲望美作為一個更廣泛的地理類別的彈性的看法？我們已經看到這些以消費者為中心的數字在過去幾週開始變得有些低迷。所以只是想知道你如何看待這些市場動態中聲望美的彈性。

Yes. No. I have to say that the -- we see the consumer sentiment, obviously, a different level of development by region. So first of all, the U.S., the consumer sentiment is solid. And in the U.S. is very interesting. You can also read the results by channel. And you see that prestige continues to grow and to accelerate in the post-COVID environment, at least from a consumer sentiment standpoint. The consumer -- sorry, prestige accelerate much faster than mass. They both are growing, but prestige is growing much more.

是的。不，我不得不說 - 我們看到消費者情緒，顯然，不同地區的發展水平不同。所以首先，美國的消費者信心是穩固的。在美國很有趣。您還可以按通道讀取結果。您會看到，至少從消費者情緒的角度來看，在後 COVID 環境中，聲望繼續增長並加速。消費者——對不起，聲望的增長速度比大眾快得多。他們都在增長，但聲望增長得更多。

And this is a sign. Again, this is a sign that consumers feel the confidence to go for quality, for performance, for experience and for what they feel connected to and the more and more. And to go back to the pleasure, to the joy to the self-pampering feelings, which are overall a positive consumer sentiment.

這是一個標誌。同樣，這表明消費者有信心追求質量、性能、體驗以及他們認為與之相關的東西以及越來越多的東西。回歸快樂，回歸自我寵愛的喜悅，這總體上是一種積極的消費情緒。

But a positive doesn't mean necessarily trust in the long-term economy. Positive in what move beauty is a positive consumer sentiment also in the sense of the interest in dedicating to yourself, the interest in pampering yourself is actually the consumer center that is better explained by the coming out of very difficult periods rather than by necessarily only economic trends. And so that consumer sentiment is the one that pushed prestige beauty in general around the world. And this consumer sentiment is sometimes even stronger in movement of high stress, because there is more pampering needs.

但積極並不意味著一定要相信長期經濟。積極的美是一種積極的消費者情緒，也從對奉獻給自己的興趣的意義上說，對寵愛自己的興趣實際上是消費者中心，這可以通過走出非常困難的時期來更好地解釋，而不是僅僅通過經濟趨勢。因此，消費者情緒是推動全球範圍內普遍享有盛譽的美容產品的因素。這種消費者情緒有時在高壓力的運動中更加強烈，因為有更多的呵護需求。

So strong in the U.S., I believe still solid in China, better in many other markets like Japan, like U.K., like the markets -- sorry, you can mention in a second, like Japan, like other markets in Asia, Korea, Singapore, which are all recovering from a tough COVID period.

在美國如此強大，我相信在中國仍然很穩固，在日本、英國等許多其他市場更好——對不起，你可以稍後提及，比如日本，就像亞洲、韓國、新加坡的其他市場一樣，這些都從艱難的 COVID 時期中恢復過來。

The only area where the consumer sentiment, as you know, is going down is Europe, and it's not because economical results because also in Europe there is pleasure of getting out of the pandemic pressure as a sentiment. But the war in Ukraine is obviously creating a very bad feeling around people. And so people are sad and there is this element -- the sentiment that create a mixed consumer sentiment at this moment in Europe. But that's the only area where the numbers suggest this. By the way, the number is not the business. The business in prestige beauty remains very, very solid, suggesting what I was explaining, which is the consumer sentiment, it is a mix of economic, external pressure like the horrible war, but also how they feel in terms of how much they need to take care of themselves, to pamper themselves in this very difficult environment. So in that sense, prestige beauty is more resilient to these kind of situations than many other markets.

如您所知，消費者信心下降的唯一地區是歐洲，這並不是因為經濟結果，因為在歐洲，人們也很高興擺脫大流行的壓力作為一種情緒。但烏克蘭的戰爭顯然在人們周圍製造了一種非常糟糕的感覺。所以人們很傷心，而且有這個因素——這種情緒在歐洲的這個時刻造成了複雜的消費者情緒。但這是數字表明這一點的唯一領域。順便說一句，數字不是生意。聲望美業的業務仍然非常非常穩固，這表明了我所解釋的，即消費者情緒，這是經濟、外部壓力（如可怕的戰爭）的混合，以及他們在需要多少方面的感受照顧好自己，在這個非常困難的環境中寵愛自己。因此，從這個意義上說，聲望美妝比許多其他市場更能適應這種情況。

And the only thing I would add to that is even as we've commented, the fragrance category during this time has picked up, so to Fabrizio's point in terms of self-pampering and prestige hair care. So we're actually seeing an acceleration in some categories of prestige during this time, particularly in the markets that are in recovery. So this really is a temporary situation that we're experiencing now and into the fourth quarter.

我唯一要補充的是，即使我們已經評論過，這段時間的香水類別已經回升，所以就 Fabrizio 而言，在自我呵護和聲望護髮方面。因此，在此期間，我們實際上看到某些類別的聲望有所加速，特別是在正在復甦的市場中。所以這確實是我們現在和第四季度所經歷的暫時情況。

Our team on the ground in China has been working diligently to try to get product to consumers, respecting obviously, the restrictions that are in place and staying healthy. And we are incredibly thankful to them for all of the things that they're doing to make sure that they can -- as best they can under these circumstances meet the demand of our consumers in China who really are looking for our products, and we'll get them as soon as we can get them to them. So...

我們在中國的實地團隊一直在努力工作，試圖將產品帶給消費者，顯然尊重現有的限制並保持健康。我們非常感謝他們所做的一切，以確保他們能夠——在這種情況下盡最大努力滿足真正在尋找我們產品的中國消費者的需求，我們我們會盡快將它們交給他們。所以...

Your last question comes from the line of Dana Telsey from Telsey Advisory Group.

您的最後一個問題來自 Telsey 諮詢集團的 Dana Telsey。

As you think about the categories of makeup and skin care, what are you looking at for skin care going forward as makeup is recovering so strongly in terms of new product releases? And then any expansion of what you're seeing at the new Ulta and Target relationships and your product expansion there?

當您考慮彩妝和護膚品的類別時，隨著新產品發布方面彩妝恢復如此強勁，您對未來的護膚品有何看法？然後你在新的 Ulta 和 Target 關係中看到的任何擴展以及你在那裡的產品擴展？

Yes, sure. Skin care will continue to develop. Actually, one of the key thing is happening is the skinification of many categories, including hair care. The skin care key trends are increasing.

是的，當然。皮膚護理將繼續發展。實際上，正在發生的關鍵事情之一是許多類別的皮膚化，包括頭髮護理。皮膚護理的主要趨勢正在增加。

And what's happening in a very broad sense on top of anti-aging that remain very important, particularly with the growth of the more mature consumers growth in numbers and in interest in the category, what's happening is that skin care is entering category of instant benefits than in the past where basically only makeup area. Today, skin care is about anti-aging, is about also instant benefit.

在非常廣泛的抗衰老之上發生的事情仍然非常重要，特別是隨著更成熟的消費者數量的增長和對該類別的興趣的增長，正在發生的事情是皮膚護理正在進入即時收益的類別比過去基本上只有化妝區的地方。今天，護膚是關於抗衰老的，也是關於即時受益的。

For instant benefit, I mean, I don't know, luminosity, even skin tone, brightness and there are so many different benefits that today are linked to how the skin looks in the day. You use it rather than just over time. And so the category is bigger, is that there are more usage occasions and there are more user reason, basically more benefits. And the industry is providing some amazing technology and some great progress in this area.

對於即時的好處，我的意思是，我不知道，亮度，甚至膚色，亮度，今天有很多不同的好處與皮膚在一天中的外觀有關。你使用它而不是隨著時間的推移。所以品類更大，就是使用場合多，用戶理由多，基本上好處多。該行業正在提供一些驚人的技術，並在該領域取得了一些重大進展。

On top of that, the penetration of skin care among different target groups and also younger target groups linked to the better penetration of instant benefits is increasing around the world. So frankly, we have a very positive view in skin care in the long term. Obviously, skin care is very strong in Asia and particularly in China. And so in a moment of restrictions like in China now, you will see less strong growth in skin care, but this, again, is temporary as we have explained of the entire situation. But the long-term skin care trend remains strong.

最重要的是，皮膚護理在不同目標群體以及與即時利益更好滲透相關的年輕目標群體中的滲透率正在全球範圍內增加。所以坦率地說，從長遠來看，我們對皮膚護理有非常積極的看法。顯然，亞洲的皮膚護理非常強大，尤其是在中國。所以在像現在中國這樣的限制時刻，你會看到護膚品的增長不那麼強勁，但這又是暫時的，正如我們對整個情況的解釋。但長期護膚趨勢依然強勁。

In terms of the situation of Target Kohl's -- Target and Kohl -- yes, Target, Ulta and Kohl's Sephora stores, we are pretty happy of the initial results there. These accounted for the moment only 3 points of growth in total, but for the quarter and of North America. But the most important news is that it's bringing new consumers. So a lot of this is extra and give us the possibility to access new consumers, and our brands are doing very well in those spaces with these consumers. So this also is a good trend in the right direction, but it's only the beginning of the journey.

就 Target Kohl's（Target 和 Kohl）的情況而言，是的，Target、Ulta 和 Kohl's Sephora 商店，我們對那裡的初步結果感到非常高興。這些僅佔當前總增長的 3 個點，但對於本季度和北美而言。但最重要的消息是它帶來了新的消費者。所以很多都是額外的，讓我們有可能接觸到新的消費者，我們的品牌在這些消費者的領域做得很好。因此，這也是朝著正確方向發展的良好趨勢，但這只是旅程的開始。

That concludes today's conference and today's question-and-answer session. If you were unable to join for the entire call, a playback will be available at 1 p.m. Eastern Time today through May 17. To hear a recording of the call, please dial (855) 859-2056, passcode 9349743. That concludes today's Estée Lauder conference call, I would like to thank you all for your participation, and wish you all a good day.

今天的會議和今天的問答環節到此結束。如果您無法加入整個通話，則可以在下午 1 點播放。東部時間今天到 5 月 17 日。要收聽電話錄音，請撥打 (855) 859-2056，密碼 9349743。今天的雅詩蘭黛電話會議到此結束，感謝大家的參與，並祝大家好日子。