雅詩蘭黛 (EL) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to The Estée Lauder Company's Fiscal 2023 Third Quarter Conference Call. Today's call is being recorded and webcast.

大家好，歡迎參加雅詩蘭黛公司 2023 財年第三季度電話會議。今天的通話正在錄音和網絡直播中。

For opening remarks and introductions, I'd like to turn the call over to Senior Vice President of Investor Relations, Ms. Rainey Mancini. Ma'am, you may begin.

關於開場白和介紹，我想把電話轉給投資者關係高級副總裁 Rainey Mancini 女士。女士，您可以開始了。

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

參加今天電話會議的有： Fabrizio Freda，總裁兼首席執行官；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. 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 the noncomparable impacts of acquisitions, divestitures, brand closures and the impact of foreign currency translation.

由於我們今天的許多評論都包含前瞻性陳述，請允許我向您推薦我們的新聞稿和我們向美國證券交易委員會提交的報告，您會在其中找到可能導致實際結果與這些前瞻性陳述存在重大差異的因素。為了便於討論我們的基礎業務，對我們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，否則所有有機淨銷售額增長也不包括收購、資產剝離、品牌關閉和外幣換算的影響。

You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website. As a reminder, references to online sales include sales that 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.

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 措施之間的調節。提醒一下，提及的在線銷售包括我們通過我們的 brand.com 網站和第三方平台直接向消費者進行的銷售。它還包括我們的產品通過我們零售商網站的預估銷售額。

(Operator Instructions) And now I'll turn the call over to Fabrizio.

（操作員說明）現在我將把電話轉給 Fabrizio。

Thank you, Rainey, and hello to everyone. We appreciate you being with us today to discuss our third quarter results and revised outlook for fiscal year 2023.

謝謝你，Rainey，向大家問好。感謝您今天與我們一起討論我們的第三季度業績和 2023 財年修訂後的展望。

In the third quarter, organic sales fell 8%, at the high end of our outlook range and the sequential improvement from the decline of 11% in the second quarter. Nearly all developed and emerging markets grew organically and outperformed our expectations to offset an even slower than expected recovery in our Asia travel retail business.

第三季度，有機銷售額下降 8%，處於我們預期區間的高端，較第二季度 11% 的下降有所改善。幾乎所有發達市場和新興市場都實現了有機增長，並超出了我們的預期，抵消了我們亞洲旅遊零售業務比預期更慢的複蘇。

As we discussed in February, Asia travel retail faced 2 headwinds in the third quarter. The first elevated inventory in Hainan given retailers' expectation for a more accelerated recovery proved very challenging as conversion of travelers to consumers in prestige beauty lagged historical trends as travels initially gravitated to other categories. This led to even lower replenishment orders than we anticipated.

正如我們在 2 月份討論的那樣，亞洲旅遊零售業在第三季度面臨兩個不利因素。鑑於零售商對更快復甦的預期，海南的首次庫存增加證明非常具有挑戰性，因為旅行者向高端美容消費者的轉變落後於歷史趨勢，因為旅行最初被吸引到其他類別。這導致補貨訂單比我們預期的還要少。

The second headwind, the transition in Korea to post-pandemic regulations as traveling consumers gradually return pressured sales meaningfully. In China and Korea, the resumption of international flights was subdued. Limited visa were granted and group tours were low to restart. These factors resulted in lower-than-expected traffic in airports throughout the region, which combined with a lower-than-expected conversion further moderated replenishment orders.

第二個逆風，隨著旅遊消費者逐漸回歸，韓國向大流行後法規的過渡對銷售造成了顯著壓力。在中國和韓國，國際航班的恢復受到抑制。授予的簽證有限，團體旅遊重啟的可能性很小。這些因素導致整個地區機場的客運量低於預期，再加上低於預期的轉換率進一步降低了補貨訂單。

With this said, there were bright spots for travel retail in Hong Kong, Macau, Europe and the Americas. All told, Global travel retail organic sales declined 45%. This was partially offset by excellent organic sales growth of 10% in the rest of our global business.

儘管如此，香港、澳門、歐洲和美洲的旅遊零售也有亮點。總而言之，全球旅遊零售有機銷售額下降了 45%。這部分被我們全球其他業務 10% 的出色有機銷售額增長所抵消。

Our retail sales growth was even stronger than organic sales growth in many markets around the world, including China and the U.S. Encouragingly, retail sales performance is significantly ahead of organic sales results in global travel retail, which gives us confidence that the challenges in travel retail are abating with time.

在包括中國和美國在內的全球許多市場，我們的零售銷售增長甚至強於有機銷售增長隨著時間的推移而減少。

Furthermore, this strength at retail, including prestige beauty share gains in many markets demonstrated the benefits of our continued investment in innovation and building the desirability of our brands around the world. These positive retail trends are expected to continue in the fourth quarter.

此外，這種零售實力，包括在許多市場中享有盛譽的美容產品份額的增長，證明了我們持續投資於創新和建立我們品牌在全球範圍內的吸引力所帶來的好處。這些積極的零售趨勢預計將在第四季度繼續。

Adjusted diluted EPS in the fiscal third quarter fell 75%, which was also at the high end of our outlook. We invested to fuel markets in various stage of post-pandemic recovery, launching sought after innovation, expanded brands into new markets and increasing advertising as a percentage of sales. As the shape of recovery for Asia travel retail comes into a better focus, it is proven to be both far more volatile than we expected a more gradual relative to what we experienced in other markets. We are, therefore, lowering our organic sales and EPS outlook for fiscal year 2023, as we reduce our implied fourth quarter outlook, primarily for Asia travel retail.

第三財季調整後的攤薄每股收益下降了 75%，這也處於我們預期的高端。我們投資於大流行後恢復的各個階段的燃料市場，推出備受追捧的創新，將品牌擴展到新市場並增加廣告佔銷售額的百分比。隨著亞洲旅遊零售業的複蘇形式成為人們更加關注的焦點，事實證明，它的波動性遠比我們預期的要大，而且相對於我們在其他市場所經歷的情況而言，復甦更為緩慢。因此，我們下調了 2023 財年的有機銷售額和每股收益預期，因為我們下調了第四季度的隱含預期，主要針對亞洲旅遊零售業。

For Asia travel retail, there are 2 factors driving our revised outlook. In Hainan, the pressure from elevated inventory in the trade is proving to be deeper and longer lasting driven by the lower-than-expected consumption trend I discussed, compounded by the retailer inventory tightening. Second, the resumption of international travel by Chinese consumers is evolving more slowly than we anticipated.

對於亞洲旅遊零售業，有兩個因素推動我們修訂前景。在海南，事實證明，在我討論的低於預期的消費趨勢以及零售商庫存收緊的推動下，貿易庫存增加的壓力更加嚴重和持續時間更長。其次，中國消費者恢復國際旅行的進展比我們預期的要慢。

Having visited Shanghai and Hainan in March and witnessed firsthand the optimist of consumers, retailers, partners and our local teams, I'm very encouraged for the future of our business with the Chinese consumers. I also had the good fortune to officially open our new China innovation lab and met with the amazing scientists and product development specialists in the state-of-the-art R&D facility, which further bolsters my confidence in the business fundamentals.

我在 3 月份訪問了上海和海南，親眼目睹了消費者、零售商、合作夥伴和我們當地團隊的樂觀態度，我對我們與中國消費者業務的未來感到非常鼓舞。我也有幸正式啟用我們新的中國創新實驗室，並在最先進的研發設施中會見了傑出的科學家和產品開發專家，這進一步增強了我對業務基礎的信心。

Indeed, the opportunity for prestige beauty in our brands with the Chinese consumer in the medium to long term remains vibrant in the domestic market, in Hainan and internationally, which remains our focus through this complex phase of recovery from the pandemic. For our fourth quarter outlook, the far slower organic sales growth that we anticipated in February is impacting profitability significantly.

事實上，從中長期來看，我們的品牌在中國消費者中享有盛譽的美容機會在國內市場、海南和國際市場上仍然充滿活力，這仍然是我們從大流行中恢復的複雜階段的重點。對於我們第四季度的展望，我們在 2 月份預期的有機銷售增長要慢得多，這對盈利能力產生了重大影響。

There are 2 factors at play beyond the pressure to a big margin accretive area of our business. First, with the rest of the business growing strongly, we will continue to invest to drive the momentum in those areas. Second, strategic and necessary long-term investments in manufacturing, R&D and information technology capabilities are pressuring margin with a slower recovery of sales.

除了對我們業務的大利潤增長領域的壓力之外，還有兩個因素在起作用。首先，隨著其他業務的強勁增長，我們將繼續投資以推動這些領域的發展勢頭。其次，隨著銷售復甦放緩，對製造、研發和信息技術能力的戰略性和必要的長期投資正在對利潤率構成壓力。

With this said, we are obviously not satisfied by the profitability in our revised outlook for fiscal year 2023. For the future, we are focused on a plan to further accelerate our growth in key markets, return to organic sales growth in our Asia travel retail business and skin care category and to progressively rebuild margin across brands, categories and regions.

話雖如此，我們顯然對我們修訂後的 2023 財年展望中的盈利能力不滿意。對於未來，我們的重點是進一步加速關鍵市場增長的計劃，恢復我們亞洲旅遊零售的有機銷售增長業務和護膚品類，並逐步重建跨品牌、品類和地區的利潤率。

Let me now share more about our third quarter performance as numerous growth engines excel. Looking at regions. Each of the Americas and Asia Pacific returned to organic sales growth, which complemented ongoing gains in the domestic markets of EMEA. Developed markets from every region contribute led by the United States, the U.K. and Hong Kong, while organic sales in our emerging markets rose an outstanding 17% globally.

現在讓我分享更多關於我們第三季度業績的信息，因為眾多增長引擎表現出色。看地區。美洲和亞太地區均恢復了有機銷售增長，這與 EMEA 國內市場的持續增長形成互補。以美國、英國和香港為首的每個地區的發達市場都做出了貢獻，而我們新興市場的有機銷售額在全球範圍內顯著增長了 17%。

Impressively, in the domestic market of EMEA, we realized broad-based strengths as every category grew double digits organically. The breadth of growth engines by category was matched by the breadth of growth engines by channel led by specialty multi and online pure-play retailers, driven by the successful go-to-market strategy as we focus on high potential channels.

令人印象深刻的是，在 EMEA 的國內市場，我們實現了廣泛的優勢，因為每個類別都實現了兩位數的有機增長。在我們專注於高潛力渠道的成功上市戰略的推動下，按類別劃分的增長引擎的廣度與由專業多元化和在線純零售商主導的渠道增長引擎的廣度相匹配。

In Western Europe, our brand successfully engaged with consumers to generate trial and repeat. The examples are many: for Estée Lauder, Bobbi Brown and Too Faced driving viral success on TikTok, to M·A·C leveraging Paris Fashion Week for its M·A·C Locked Kiss Ink lipstick launch and La Mer hosting dermatologists for a unique event.

在西歐，我們的品牌成功地吸引了消費者進行嘗試和重複。例子很多：雅詩蘭黛、Bobbi Brown 和 Too Faced 在 TikTok 上取得了病毒般的成功，M·A·C 利用巴黎時裝週推出了 M·A·C Locked Kiss Ink 唇膏，而 La Mer 則邀請皮膚科醫生進行獨特的事件。

These collective initiatives featuring enticing innovation and hero products drove the company's accelerating prestige beauty share gains for the quarter in Western Europe.

這些以誘人的創新和英雄產品為特色的集體舉措推動了該公司本季度在西歐的美妝市場份額加速增長。

Looking at Asia Pacific, it similarly delivered diversified growth. Nearly every market and each category contributed to the region's return to organic sales growth. Fragrance was a standout, rising double digit fueled by excellent performance of our luxury and artisanal portfolio, led by Jo Malone London, Le Labo and Tom Ford Beauty. These brands hero franchises welcome new consumers into the category, while locally inspired innovation and enriching in-store services further contributed to the expansion of this promising category in the region.

放眼亞太地區，它同樣實現了多元化增長。幾乎每個市場和每個品類都為該地區恢復有機銷售增長做出了貢獻。香水是一個突出的增長兩位數，這得益於我們以 Jo Malone London、Le Labo 和 Tom Ford Beauty 為首的奢侈品和手工產品組合的出色表現。這些品牌的英雄特許經營權歡迎新消費者加入該品類，同時激發本地靈感的創新和豐富的店內服務進一步促進了這一有前途的品類在該地區的擴張。

Mainland China grew low single digits organically, after 4 quarters of pressure from COV19 restrictions and outbreaks. The beginning of the quarter was impacted by the lingering effects of the COVID cases in November, December. In January, retailers worked through existing inventory as traffic gradually returned such that organic sales declined steep double digits. As all the reopening progressed, organic sales rose double digits in each of February and March.

在經歷了 COV19 限制和爆發的 4 個季度壓力之後，中國大陸實現了低個位數的有機增長。本季度初受到 11 月和 12 月 COVID 病例揮之不去的影響。 1 月份，隨著客流量逐漸恢復，零售商處理現有庫存，導致有機銷售額急劇下降兩位數。隨著所有重新開放的推進，有機銷售額在 2 月和 3 月每年都增長了兩位數。

Even in this complex quarter in Mainland China, consumer desire for high-quality products, elevated experiences and newness was clear and our brands delivered led by Estee Lauder and La Mer. For Estée Lauder skin care fueled its growth. Consumer gravitated to the brand's innovation and cherished heroes across franchises, most especially is luxury oriented Re-Nutriv as well as Supreme. La Mer further contributed, boosted by its expert beauty adviser offering, differentiated services and the launch of the reformulated moisturizing sub cream, which attracted new consumers with its advanced benefits.

即使在中國大陸這個複雜的季度，消費者對高品質產品、提升體驗和新穎性的渴望也很明顯，我們的品牌以雅詩蘭黛和海藍之謎為首。對於雅詩蘭黛來說，護膚品推動了它的發展。消費者被品牌的創新所吸引，並珍視特許經營中的英雄，尤其是以奢侈品為導向的 Re-Nutriv 和 Supreme。 La Mer 進一步做出貢獻，得益於其專業美容顧問提供、差異化服務和新配方保濕子霜的推出，以其先進的好處吸引了新的消費者。

Encouragingly, for the third quarter, our prestige beauty share gains in Mainland China accelerated sequentially driven by skin care as well as both online and brick-and-mortar.

令人鼓舞的是，第三季度，在護膚品以及在線和實體店的推動下，我們在中國大陸的聲望美容份額增長環比加速。

In the Americas, the United States returned to organic sales growth, invigorated by strategic go-to-market initiatives and innovation to engage existing as well as new consumers. The Ordinary [showed] owing to its heroes and the winning streak of innovation with the latest being Multi-Peptide Eye Serum, which is bringing in the new consumer demographic. Estée Lauder introduction of the revamped Nutritious franchise focused Gen Z with all new skin care products and launched exclusively with Ulta Beauty realized strong initial uptake.

在美洲，美國恢復了有機銷售增長，這得益於戰略性的上市計劃和創新，以吸引現有和新的消費者。 The Ordinary [showed] 由於其英雄和創新的連勝，最新的多肽眼部精華液正在吸引新的消費者群體。雅詩蘭黛推出經過改進的 Nutritious 特許經營權，以所有新護膚產品聚焦 Z 世代，並與 Ulta Beauty 獨家推出，實現了強勁的初始吸收。

Looking at makeup in the United States, M·A·C, Clinique and Too Faced fueled excellent performance with targeting initiatives to serve various consumer demographics across freestanding stores, specialty-multi and department stores. For Clinique, it is a case study in successfully leveraging viral success of a product. In each case, Almost Lipstick and Black Honey to drive organic sales growth in many subcategories.

看看美國的化妝品，M·A·C、倩碧和 Too Faced 通過有針對性的舉措為獨立商店、專賣店和百貨商店的各種消費者群體提供服務，從而推動了卓越的業績。對于倩碧來說，這是一個成功利用產品病毒式成功的案例研究。在每種情況下，Almost Lipstick 和 Black Honey 都推動了許多子類別的有機銷售增長。

Across regions, emerging markets showed their promise as a long-term growth engine as our in-market team executed with excellence to meet the local needs of consumers. The double-digit organic sales growth in emerging markets this quarter extends our fiscal year-to-date momentum with strong contribution from India and Brazil.

在各個地區，新興市場展現了作為長期增長引擎的潛力，因為我們的市場團隊以卓越的表現滿足了當地消費者的需求。本季度新興市場兩位數的有機銷售增長延續了我們財年迄今的勢頭，印度和巴西做出了巨大貢獻。

Globally, our diverse portfolio of brands served as a powerful catalyst for growth, M·A·C, Tom Ford Beauty, The Ordinary and Le Labo each contributed strong organic sales growth and demonstrated the gains to be had across our large scaling and developing brands. M·A·C with its global reach, as per (inaudible) service-oriented freestanding stores continue to realize the evolution of the makeup renaissance as markets progress in recovery from the pandemic. Furthermore, the brand leverage, its market leading EMV ranking with high impact activation and product launches in makeup.

在全球範圍內，我們多元化的品牌組合成為增長的強大催化劑，M·A·C、Tom Ford Beauty、The Ordinary 和 Le Labo 均貢獻了強勁的有機銷售增長，並展示了我們大規模擴張和發展中品牌的收益. M·A·C 憑藉其全球影響力，根據（聽不清）以服務為導向的獨立商店繼續實現化妝品復興的演變，因為市場正在從大流行中復蘇。此外，該品牌利用其市場領先的 EMV 排名以及高影響力激活和化妝品產品發布。

Consumers also embraced M·A·C new Hyper Real franchise in skin care, which should represent an incremental growth engine for the brand over time. Importantly, [Iberia] is another example in our portfolio of exciting East to West innovation as it was born in Asia Pacific and launched globally.

消費者還接受了 M·A·C 新的 Hyper Real 護膚品特許經營權，隨著時間的推移，這應該代表該品牌的增量增長引擎。重要的是，[Iberia] 是我們激動人心的東西方創新組合中的另一個例子，因為它誕生於亞太地區並在全球推出。

Tom Ford Beauty delivered double-digit organic sales growth, excelling across fragrance and makeup. In fragrance, the new Private Blend Cherry Collection was an instant hit while the brand extension of Tom Ford, Noir Extreme Eau de Parfum, [into parfum] captivate consumers seeking intensity and the highest quality.

Tom Ford Beauty 實現了兩位數的有機銷售額增長，在香水和化妝品領域表現出色。在香水方面，新的 Private Blend Cherry 系列一炮而紅，而 Tom Ford 的品牌延伸，Noir Extreme Eau de Parfum [into parfum] 吸引了追求強度和最高品質的消費者。

We are thrilled to have enriched our brand portfolio last week when we acquired Tom Ford, a power player in luxury with promising growth opportunities ahead. The deal is a wonderful outcome of our successful journey with the brand, which began when we collaborated to create Tom Ford Beauty over 15 years ago.

上週我們收購了 Tom Ford，這豐富了我們的品牌組合。這筆交易是我們與品牌成功之旅的美妙成果，從 15 多年前我們合作創建 Tom Ford Beauty 開始。

The ordinary ingredient-focused product prospered in its heritage markets as well as in new markets evidenced by the brand very successfully February launch in the Middle East. While Le Labo continued to evolve from strength to strength globally, rising 60% organically.

這種以普通成分為重點的產品在其傳統市場和新市場都取得了成功，該品牌 2 月份在中東推出的產品非常成功就是明證。 Le Labo 在全球範圍內不斷壯大，有機增長 60%。

In closing, while we are lowering our outlook for fiscal year 2023 to reflect the deeper pressure in Asia travel retail, given its standard recovery and related retail inventory tightening. We are encouraged by the strong momentum in the rest of our business. Looking ahead, we are focused on a strong acceleration, balanced organic sales growth across regions, categories and channels and progressively rebuilding margin. Indeed, consumer demand is robust for our diverse portfolio of brands in developed and emerging markets globally, evidenced in both organic sales growth and retail sales trends. This drives our confidence in the future.

最後，我們下調了 2023 財年的展望，以反映亞洲旅遊零售面臨的更深壓力，因為其標準復甦和相關零售庫存收緊。我們對其他業務的強勁勢頭感到鼓舞。展望未來，我們專注於強勁加速，跨地區、品類和渠道的平衡有機銷售增長，並逐步重建利潤率。事實上，消費者對我們在全球發達市場和新興市場的多元化品牌組合的需求強勁，有機銷售增長和零售銷售趨勢都證明了這一點。這激發了我們對未來的信心。

To our employees, I extend my deepest gratitude for your exceptional dedication to our company and each other amid a difficult external environment. You have demonstrated an unwavering passion to exceed consumer desires around the world with our beautiful portfolio of brands.

對於我們的員工，我對你們在艱難的外部環境中對我們公司和彼此的卓越奉獻表示最深切的感謝。您展示了通過我們精美的品牌組合超越全球消費者期望的堅定熱情。

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 organic net sales declined 8% and earnings per share decreased 75% to $0.47. As Fabrizio mentioned, despite continued challenges in our Asia travel retail business, we experienced accelerated growth across our markets globally with nearly every market expanding as they progressed through various stages of recovery from the pandemic.

謝謝你，Fabrizio，大家好。我們第三季度的有機淨銷售額下降了 8%，每股收益下降了 75% 至 0.47 美元。正如 Fabrizio 所提到的，儘管我們的亞洲旅遊零售業務面臨持續挑戰，但我們在全球市場經歷了加速增長，幾乎每個市場都在經歷從大流行中復甦的各個階段時都在擴張。

From a geographic standpoint, organic net sales in our Asia/Pacific region rose 7%, with nearly all markets contributing led by Hong Kong, which doubled in size, partially due to the return of Chinese travelers while Australia grew nearly 50% and Japan rose double digits.

從地域的角度來看，我們亞太地區的有機淨銷售額增長了 7%，幾乎所有市場都以香港為首，其規模翻了一番，部分原因是中國遊客的回歸，而澳大利亞增長了近 50%，日本增長了兩位數。

Mainland China also returned to growth this quarter, showing positive signs of recovery in February and March after the pressure from the increase in COVID cases and slower retail traffic in January. Throughout the region, markets continued to progress in recovery with fewer COVID restrictions compared to last year, leading to growth in all product categories with the return of brick-and-mortar traffic. Strong double-digit growth from the region's emerging markets contributed 1 point to Asia Pacific's growth.

中國大陸本季度也恢復增長，在 COVID 病例增加和 1 月份零售客流量放緩的壓力下，2 月和 3 月顯示出積極的複蘇跡象。在整個地區，市場繼續在復蘇中取得進展，與去年相比，COVID 限制有所減少，隨著實體店客流量的恢復，所有產品類別均出現增長。該地區新興市場強勁的兩位數增長為亞太地區的增長貢獻了 1 個百分點。

Organic net sales in the Americas rose 6%, led by the United States. In North America, organic net sales grew mid-single digits, reflecting growth in skin care, makeup and fragrance. The Ordinary, M·A·C and Le Labo excelled each rising double digits in the quarter. Specialty multi-growth including distribution expansion, drove the increase in brick-and-mortar along with contributions from freestanding stores and department stores.

在美國的帶動下，美洲的有機淨銷售額增長了 6%。在北美，有機淨銷售額增長了中個位數，反映了護膚、化妝品和香水的增長。 The Ordinary、M·A·C 和 Le Labo 在本季度均取得兩位數的增長。包括分銷擴張在內的專業多元增長推動了實體店的增長以及獨立商店和百貨商店的貢獻。

In Latin America, organic net sales grew double digits, benefiting from growth in every country and in all product categories with particular strength in makeup and fragrance. Organic net sales in our Europe, the Middle East and Africa region fell 24%, driven entirely by the travel retail business. Our global travel retail sales continued to be pressured by our Asia travel retail business, which Fabrizio described. Outside of Asia, we experienced double-digit sales growth in travel retail as international travel increased throughout Europe and the Americas.

在拉丁美洲，有機淨銷售額增長了兩位數，這得益於每個國家和所有產品類別的增長，尤其是彩妝和香水。我們在歐洲、中東和非洲地區的有機淨銷售額下降了 24%，這完全是受旅遊零售業務的推動。 Fabrizio 表示，我們的全球旅遊零售業務繼續受到亞洲旅遊零售業務的壓力。在亞洲以外，隨著整個歐洲和美洲的國際旅行增加，我們的旅遊零售銷售額實現了兩位數的增長。

The overall performance in travel retail more than offset the organic net sales growth from the rest of the EMEA region, where we drove strong performance in all product categories and from nearly all channels of distribution. Organic net sales rose across both developed and emerging markets, led by the United Kingdom, Germany, France, Italy and Turkey as the progression to recovery continued and tourism resumed.

旅遊零售的整體表現遠遠抵消了 EMEA 地區其他地區的有機淨銷售額增長，我們在這些地區推動了所有產品類別和幾乎所有分銷渠道的強勁表現。隨著復甦進程的繼續和旅遊業的恢復，以英國、德國、法國、意大利和土耳其為首的發達市場和新興市場的有機淨銷售額均有所增長。

From a category standpoint, fragrance continued its momentum as organic net sales rose 14%. Strong demand for our products and high-touch services as well as innovation fueled growth across every geographic region. Tom Ford Beauty, Le Labo and Estée Lauder each grew double digits in the quarter.

從類別的角度來看，香水繼續保持增長勢頭，有機淨銷售額增長了 14%。對我們產品和高接觸服務的強勁需求以及創新推動了每個地理區域的增長。 Tom Ford Beauty、Le Labo 和雅詩蘭黛在本季度均實現了兩位數的增長。

Organic net sales in hair care grew 3% and sales were virtually flat in makeup. Makeup growth in the Americas, Asia Pacific and the markets in EMEA, excluding travel retail, was offset by the pressures in Asia travel retail. M·A·C and Clinique continued to drive makeup recovery and double-digit growth from Tom Ford Beauty and Too Faced also contributed. Nearly every market in Asia Pacific realized strong growth in the category, partially offset by softness in Mainland China.

護髮產品的有機淨銷售額增長了 3%，而彩妝產品的銷售額幾乎持平。美洲、亞太地區和 EMEA 市場（不包括旅遊零售）的構成增長被亞洲旅遊零售的壓力所抵消。 M·A·C 和 Clinique 繼續推動彩妝復甦，Tom Ford Beauty 和 Too Faced 的兩位數增長也做出了貢獻。亞太地區幾乎每個市場都實現了該類別的強勁增長，部分被中國大陸的疲軟所抵消。

Organic net sales in skin care fell 17% due to the pressures affecting Asia travel retail. The declines from La Mer and Estée Lauder were partially offset by standout performance from The Ordinary and M·A·C. The Ordinary benefited from strong growth in specialty-multi channels, particularly in the U.S. as well as from geographic expansion into India and the Middle East this year, as well as the success of new product innovation.

由於影響亞洲旅遊零售業的壓力，護膚品的有機淨銷售額下降了 17%。海藍之謎和雅詩蘭黛的下滑部分被 The Ordinary 和 M·A·C 的出色表現所抵消。 The Ordinary 受益於專業多渠道的強勁增長，尤其是在美國，以及今年向印度和中東的地域擴張，以及新產品創新的成功。

The launch of M·A·C's hyper-real product franchise expanded its offerings in the category and contributed to growth. Our gross margin declined 750 basis points compared to last year, largely due to the slower-than-expected recovery in Asia travel retail. This includes obsolescence charges, higher promotional costs and gift sets to drive increased consumption, excess overhead absorption in our plants due to the pull down of production throughout the year given higher inventory levels and less favorable brand and category mix.

M·A·C 超真實產品專營權的推出擴大了其在該類別中的產品範圍並促進了增長。與去年相比，我們的毛利率下降了 750 個基點，這主要是由於亞洲旅遊零售的複蘇慢於預期。這包括過時費用、更高的促銷成本和禮品套裝以推動消費增加、由於庫存水平較高以及品牌和品類組合較差而全年產量下降導致我們工廠的過度管理費用吸收。

Operating expenses increased 570 basis points as a percent of sales, driven largely by the reduction in sales. We continued our investments to support recovery markets in areas such as advertising, promotional activities and innovation, which collectively increased 230 basis points compared to last year.

營業費用佔銷售額的百分比增加了 570 個基點，這主要是由於銷售額下降所致。我們繼續投資以支持廣告、促銷活動和創新等領域的複蘇市場，這些領域與去年相比總共增加了 230 個基點。

Operating income declined 66% to $316 million, and our operating margin contracted 1,320 basis points to 8.4% in the quarter. Despite the volatility that has significantly impacted net sales, we have sustained certain of our strategic investments to support recovery in select markets and the strengthening of our multiple engines of growth. We've continued to invest in areas imperative to long-term profitable growth, including innovation, advertising, the growth of our emerging markets, the geographic expansion of some of our brands, production capacity and consumer engagement.

本季度營業收入下降 66% 至 3.16 億美元，營業利潤率下降 1,320 個基點至 8.4%。儘管波動對淨銷售額產生了重大影響，但我們仍維持了某些戰略投資，以支持特定市場的複蘇並加強我們的多個增長引擎。我們繼續投資於對實現長期盈利增長至關重要的領域，包括創新、廣告、新興市場的增長、我們部分品牌的地域擴張、生產能力和消費者參與度。

Our effective tax rate for the quarter was 43.1% compared to 21.3% last year. The increase in rate was primarily due to the expected further reduction in earnings related to our travel retail business for fiscal 2023. Diluted EPS of $0.47 decreased 75% compared to last year. This was at the high end of our outlook despite the significantly higher than normal tax rate.

我們本季度的有效稅率為 43.1%，而去年為 21.3%。利率上升的主要原因是預計 2023 財年與我們的旅遊零售業務相關的收益將進一步減少。稀釋後每股收益為 0.47 美元，與去年相比下降了 75%。儘管稅率明顯高於正常水平，但仍處於我們預期的高端。

The impact from foreign currency translation and foreign currency transactions in key travel retail locations negatively impacted diluted EPS by 1% and 3%, respectively. For the 9 months, we generated $1 billion in net cash flows from operating activities compared to $2 billion last year. The decline from last year reflects lower net income, partially offset by lower working capital. We invested $652 million in capital expenditures, and we returned $945 million in cash to stockholders through both dividends and share repurchases.

主要旅遊零售地點的外幣換算和外幣交易的影響分別對攤薄每股收益產生了 1% 和 3% 的負面影響。在這 9 個月裡，我們從經營活動中產生了 10 億美元的淨現金流，而去年為 20 億美元。與去年相比的下降反映了較低的淨收入，部分被較低的營運資本所抵消。我們投入了 6.52 億美元的資本支出，並通過股息和股票回購向股東返還了 9.45 億美元的現金。

On April 28, we were pleased to complete the acquisition of the Tom Ford brand. The amounts paid at closing of approximately $2.25 billion were funded through a combination of cash, including the proceeds from the issuance of commercial paper and $250 million received from one of the licensees of the brand, Marcolin. An additional aggregate amount of $300 million in deferred payments and 5% interest per annum to the sellers become due from the company beginning in July 2025. We estimate an EPS dilution to the full year of approximately $0.03 to $0.04.

4 月 28 日，我們很高興地完成了對 Tom Ford 品牌的收購。交易結束時支付的金額約為 22.5 億美元，資金來自現金組合，包括發行商業票據的收益和從該品牌的被許可人之一 Marcolin 收到的 2.5 億美元。從 2025 年 7 月開始，公司將向賣方支付總計 3 億美元的延期付款和每年 5% 的利息。我們估計全年每股收益攤薄約為 0.03 美元至 0.04 美元。

And now turning to our outlook for fiscal 2023. Clearly, this fiscal year has proven to be a perfect storm of higher-than-anticipated volatility from both global external headwinds and uncertainties surrounding the timing and pace of recovery from the COVID-19 pandemic, primarily in China and Asia travel retail.

現在轉向我們對 2023 財年的展望。顯然，本財年已被證明是一場完美的風暴，其波動性高於預期，原因是全球外部逆風以及圍繞從 COVID-19 大流行中復甦的時間和步伐的不確定性，主要在中國和亞洲旅遊零售。

In August, we expected a gradual improvement throughout the first half of the fiscal year as markets and international travel began to recover from the impacts of COVID restrictions. However, the actual impacts to our business in Asia travel retail and China, to a lesser extent, have been far greater than we anticipated given the prolonged challenges from the pandemic including a slower-than-expected recovery of traffic and sales conversion in prestige beauty in these markets.

8 月，我們預計隨著市場和國際旅行開始從 COVID 限制的影響中恢復，整個財政年度上半年將逐步改善。然而，考慮到大流行帶來的長期挑戰，包括高端美容業務的流量恢復和銷售轉化慢於預期，對我們在亞洲旅遊零售和中國業務的實際影響在較小程度上遠大於我們的預期在這些市場中。

Further compounding this pressure is the tightening of inventory by retailers in Hainan. We now expect that a far more gradual return to normal sales growth in Asia travel retail is likely to persist into the first half of fiscal 2024. In addition, higher inflation and currency volatility, as well as promotions in certain markets to alleviate high stock levels more than offset our price increases and further pressured our business margins.

進一步加劇這種壓力的是海南零售商收緊庫存。我們現在預計，到 2024 財年上半年，亞洲旅遊零售業的銷售增長可能會更加緩慢地恢復正常。此外，通脹和貨幣波動加劇，以及某些市場為緩解高庫存水平而推出的促銷活動不僅抵消了我們的價格上漲，還進一步壓低了我們的業務利潤率。

In spite of the volatility in Asia travel retail that delayed the recovery relative to what we had expected, as well as the macro pressures from inflation and currency, we have been encouraged by the faster-than-anticipated improvements across many of our markets globally as they progress through various stages of recovery from the pandemic.

儘管亞洲旅遊零售業的波動導致復甦相對於我們的預期有所延遲，而且通脹和貨幣帶來宏觀壓力，但我們對全球許多市場的改善快於預期感到鼓舞，因為他們經歷了從大流行中恢復的各個階段。

While we are lowering our full year outlook to reflect continued decline in net sales in Asia travel retail, including the tightening of inventory by certain retailers, we plan to invest in markets where traffic and consumption are returning and expect to return to overall net sales growth in the fourth quarter. This reflects double-digit sales growth in the Asia Pacific region, including Mainland China, as well as in EMEA, excluding Asia travel retail.

雖然我們下調全年展望以反映亞洲旅遊零售淨銷售額的持續下降，包括某些零售商的庫存收緊，但我們計劃投資於客流量和消費正在恢復的市場，並有望恢復整體淨銷售額增長在第四季度。這反映了亞太地區（包括中國大陸）以及歐洲、中東和非洲（不包括亞洲旅遊零售）的兩位數銷售額增長。

The Americas is planned to grow single digit. Currency also continues to pressure margins relative to prior year. As Fabrizio mentioned, we are certainly not satisfied with our results this fiscal year and will address plans to progressively rebuild the margin accretive areas of our business beyond this fiscal year from the current year's level.

美洲計劃增長個位數。相對於上一年，匯率也繼續對利潤率構成壓力。正如 Fabrizio 所提到的，我們當然對本財年的業績不滿意，並將製定計劃，在本財年之後逐步重建我們業務的利潤增長領域。

When full recovery does occur from the pandemic, we do expect the return to healthy growth of our Asia travel retail business and in our related skin care category, supported by a more normalized level of investment in selling, advertising and promotional activities, reflective of the increased brick-and-mortar traffic.

當大流行病確實完全復甦時，我們確實希望我們的亞洲旅遊零售業務和我們相關的護膚品類別恢復健康增長，這得益於對銷售、廣告和促銷活動的更正常的投資水平，這反映了實體店流量增加。

With these assumptions as our backdrop and using March 31 spot rates of 1.09 for the euro, 1.239 for the pound, 6.872 for the Chinese yuan and 12.97 for the Korean won. We now forecast organic net sales for the full year to decline 7% to 5%. Currency translation is expected to dilute reported sales growth for the full fiscal year by 4 percentage points and we anticipate an additional 1 point of dilution from the impact of certain foreign currency transactions and key international travel retail locations. The impact of sales from certain designer license exits are expected to dilute reported growth by approximately 1 point.

以這些假設為背景，並使用 3 月 31 日歐元即期匯率 1.09、英鎊 1.239、人民幣 6.872 和韓元 12.97。我們現在預測全年的有機淨銷售額將下降 7% 至 5%。貨幣換算預計會將整個財年報告的銷售增長稀釋 4 個百分點，我們預計某些外幣交易和主要國際旅遊零售地點的影響還會進一步稀釋 1 個百分點。某些設計師許可退出的銷售影響預計將稀釋報告的增長約 1 個百分點。

Full year operating margin is forecasted to be approximately 11.1%, an 860 basis point contraction from the prior year period primarily due to the disruptions from COVID restrictions that not only impacted sales in Asia travel retail in Mainland China, but also resulted in increased obsolescence charges, discounts and promotional expenses.

全年營業利潤率預計約為 11.1%，較上年同期收縮 860 個基點，主要原因是 COVID 限制的中斷不僅影響了中國大陸亞洲旅遊零售的銷售，還導致報廢費用增加、折扣和促銷費用。

Foreign currency impacts and the strategic investments I mentioned previously are also expected to pressure margin. We now expect our full year effective tax rate to be approximately 27% reflecting the change in our estimated geographical mix of earnings for the balance of the year.

外匯影響和我之前提到的戰略投資也預計會對利潤率構成壓力。我們現在預計我們的全年有效稅率約為 27%，反映了我們估計的今年餘下收入地域組合的變化。

Diluted EPS is expected to range between $3.29 and $3.39 before restructuring and other charges and includes the expected impact of the Tom Ford acquisition I mentioned previously. This includes approximately $0.26 of dilution from currency translation.

在重組和其他費用之前，稀釋後的每股收益預計在 3.29 美元到 3.39 美元之間，包括我之前提到的湯姆福特收購的預期影響。這包括約 0.26 美元的貨幣換算攤薄。

In constant currency, we expect EPS to decline approximately 51%, which includes a negative impact from foreign currency transactions and key international travel retail locations of approximately 4 percentage points. While this has been a challenging and disappointing year, navigating through many uncertainties, the strength we are seeing in many of our recovery markets gives us tremendous optimism for the future.

按固定匯率計算，我們預計每股收益將下降約 51%，其中包括外幣交易和主要國際旅遊零售地點的負面影響約 4 個百分點。儘管今年是充滿挑戰和令人失望的一年，經歷了許多不確定性，但我們在許多複蘇市場中看到的力量讓我們對未來充滿了樂觀。

Our long-term fundamentals and strategy remain intact as does our confidence in the long-term growth opportunities for global prestige beauty and our brands with the investments we've made to sustain long-term profitable growth.

我們的長期基本面和戰略保持不變，我們對全球知名美容和我們品牌的長期增長機會充滿信心，我們為維持長期盈利增長而進行的投資。

On behalf of Fabrizio and the Estée Lauder Company's leadership team, we want to extend our immense gratitude to all of our employees around the world. We recognize that this has been an incredibly challenging year for you, and we want to thank you for your extraordinary efforts, your dedication and commitment to the company and your resilience as we continue together on our path to recovery.

我們謹代表 Fabrizio 和雅詩蘭黛公司的領導團隊，向全球所有員工表示由衷的感謝。我們認識到，今年對您來說是極具挑戰性的一年，我們要感謝您在我們繼續共同走上復甦之路時所做的非凡努力、您對公司的奉獻和承諾以及您的韌性。

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。此時我們很樂意回答您的問題。

(Operator Instructions) Our first question today comes from Dara Mohsenian from Morgan Stanley.

（操作員說明）我們今天的第一個問題來自摩根士丹利的 Dara Mohsenian。

So I just wanted to touch on the 3 areas of weakness versus prior guidance in terms of Hainan, Korea and China. Taking a step back, the magnitude of changes to your guidance stemming from the areas is obviously severe, and it also looks more onerous than peers. So just as you take a step back and look at the weakness versus what was expected, how much of that do you think more just the timing of recovery and beauty at the consumer level coming out of COVID or retailer inventory issues, which in theory, are more shorter term versus the potential for the longer-term recovery in the beauty category is lower in these areas. So really just perspective on lower long-term sales potential versus more short-term issues.

因此，我只想談談海南、韓國和中國的 3 個弱點與之前的指導。退一步說，你的指導變化的幅度顯然是嚴重的，而且看起來比同行更繁重。因此，當你退後一步，看看弱點與預期的對比時，你認為其中有多少更多的是 COVID 或零售商庫存問題導致消費者層面的複蘇和美麗的時機，從理論上講，與這些地區美容類別的長期復蘇潛力相比，短期復甦的可能性更小。所以真的只是從較低的長期銷售潛力與更多的短期問題的角度來看。

And I know it's hard to speak relative to peer results and guidance, but it does look like the issues are more severe for Estée versus peers. There's just any perspective on Estée's market share or company performance in these areas would also be helpful.

而且我知道相對於同行的結果和指導很難說，但看起來 Estée 的問題確實比同行更嚴重。對 Estée 在這些領域的市場份額或公司業績的任何看法也會有所幫助。

Okay. Dara, so thank you for the question. In Hainan, as we said in the prepared remarks, we are starting to see during the quarter, passenger traffic come back in Hainan, and that's been very positive. As Fabrizio mentioned, in his prepared remarks, we had a group that was in Hainan a few weeks back and saw quite a bit of activity. So we're very encouraged. And in fact, Hainan actually reflected positive retail sales in the third quarter. So this is the first quarter the Hainan performance for us has been up and down all year, and some of the swings have been quite severe. But we did see a progression to positive retail sales.

好的。達拉，謝謝你的提問。在海南，正如我們在準備好的評論中所說，我們在本季度開始看到海南的客運量回升，這是非常積極的。正如 Fabrizio 提到的，在他準備好的發言中，我們有一個小組幾週前在海南，看到了相當多的活動。所以我們很受鼓舞。事實上，海南實際上在第三季度反映了積極的零售額。所以這是第一季度，海南對我們的表現全年都有起有落，有些波動非常劇烈。但我們確實看到了積極的零售銷售進展。

I think the thing that gives us more comfort now on a more continuous steady progression of recovery is the fact that the COVID restrictions have been lifted. And so what we were experiencing before with our travel retail business is the volatility related to some of the COVID restrictions and the flow of traffic and travel and people's comfort with travel. So that gives us more comfort that we're going to see a recovery.

我認為現在讓我們更加欣慰的是，在更持續穩定的複蘇進程中，COVID 限制已經解除。因此，我們之前在旅遊零售業務中經歷的是與某些 COVID 限制、交通和旅行流量以及人們對旅行的舒適度相關的波動。因此，這讓我們更加欣慰，我們將看到復蘇。

In terms of our experience as it relates to the business and why it has been as significant as it is, is because when you look back at the beginning of this year, we had very strong momentum in -- coming into the year in travel retail, in Hainan in particular. Our July results were up strong double digit. Then Hainan went into closure, and that extended for longer than we had anticipated. But given the results we had seen in July and actually in some previous months, we had expected that, that recovery would happen faster once the lockdown was lifted, and that didn't happen. And so we ended up with -- and our retailers also expected that recovery.

就我們與業務相關的經驗以及為什麼它如此重要而言，是因為當你回顧今年年初時，我們在進入旅遊零售領域的勢頭非常強勁，尤其是海南。我們 7 月份的業績強勁增長了兩位數。然后海南就封城了，封城的時間比我們預想的要長。但考慮到我們在 7 月份以及實際上在前幾個月看到的結果，我們曾預計，一旦解除封鎖，復甦會更快，但這種情況並沒有發生。所以我們最終 - 我們的零售商也期待這種複蘇。

We ended up with more inventory in the trade than what's needed basically for the level of sales that were being done in Hainan. So our pullback in inventory right now, given the pace of recovery that we're seeing, again, we're encouraged, but the retail inventory needs to come down, and therefore, we are pulling back on our shipments.

我們最終的貿易庫存超過了海南銷售水平所需要的數量。因此，鑑於我們看到的複蘇步伐，我們現在的庫存再次受到鼓舞，但零售庫存需要下降，因此我們正在減少出貨量。

Korea, we talked about in the last call in terms of what happened in Korea. We basically have a change in the rollback of COVID-19-related supportive measures with Korean duty-free operators, and that too was pretty sudden in the third quarter. The expectation is that we will see travelers come back to Korea and come back to duty-free shopping in Korea, but that has not happened yet. Korea benefits from having a lot of organized tour business from Chinese traveling consumers, and that has been slower to come back. So that certainly is pressuring our fourth quarter as well. And again, it's been difficult to predict the timing of all of this recovery, but we do know the recovery is happening.

韓國，我們在上次電話會議中談到了韓國發生的事情。我們基本上改變了與韓國免稅運營商的 COVID-19 相關支持措施的回滾，這在第三季度也很突然。期望我們會看到遊客回到韓國並回到韓國免稅購物，但這還沒有發生。韓國受益於中國旅遊消費者的大量有組織的旅遊業務，而且這種情況恢復得較慢。因此，這當然也在給我們的第四季度帶來壓力。再一次，很難預測所有這些復甦的時間，但我們確實知道復甦正在發生。

So we don't believe there is an issue at all with prestige beauty. When we look at the recovery we're seeing in the Americas, in other Asia/Pac regions, in EMEA, we see very strong recovery of prestige beauty. And actually, you're seeing an acceleration of fragrance, makeup and skin care. So it really is based on what we're seeing in other regions given they're further along in the recovery relative to some of the regions that you asked about.

所以我們不認為名譽美容有任何問題。當我們審視我們在美洲、其他亞洲/太平洋地區、歐洲、中東和非洲地區看到的複蘇時，我們看到聲望美容的複蘇非常強勁。事實上，你看到了香水、化妝品和護膚品的加速發展。因此，這實際上是基於我們在其他地區看到的情況，因為相對於您詢問的某些地區，它們在復蘇中走得更遠。

And that, I just want to add that -- so as Tracey explained in TR, is really an issue of inventories versus pace of recovery. Another proof of that is our retail in travel retail is so much stronger than our net. So you have a minus 45% in Quarter 3 versus a single digit decline in retail. So there is a lot of inventory absorption, which is going on with the recovery. And a lot of the speed of this absorption will depend on the speed of the recovery that we have in front of us. We are estimating that given the trend in this period in the Quarter 4, retail will go positive, and then the absorption will continue to improve over time and definitely continue in Quarter 1 of next year -- next fiscal year.

而且，我只想補充一點——正如 Tracey 在 TR 中解釋的那樣，這實際上是一個庫存與復蘇速度的問題。另一個證明是我們在旅遊零售方面的零售比我們的網絡強得多。因此，與零售業的個位數下降相比，第三季度你有負 45% 的下降。所以有大量的庫存吸收，這是隨著經濟復甦而進行的。這種吸收的速度在很大程度上取決於我們面前的恢復速度。我們估計，鑑於第四季度這一時期的趨勢，零售將轉為正數，然後隨著時間的推移，吸收將繼續改善，並且肯定會在明年第一季度 - 下一個財政年度繼續。

On other encouraging point, I want to touch briefly on China that you asked also about. So in China, we returned to organic growth, which is excellent news and we expect a double-digit growth in Quarter 4 in China Mainland. We accelerated market share gains for the second quarter in a row. And I want to underline when we -- the problem with the volatility in China started in the period where Shanghai got closed, and we were particularly affected by the closure of Shanghai. At that moment, during these 3 months of closure, we lost some significant market share. Now the good news, we are now essentially made up for the lost market share from the low downs. We are back in line with the total market share, and we expect in Quarter 4 because also the low base to get into a positive market share growth versus also the pre-lockdown period, which is extraordinary. We said they would have tried to recover this in 1 year, and we will do that better than that.

關於其他令人鼓舞的一點，我想簡單談談你也問到的中國。因此在中國，我們恢復了有機增長，這是個好消息，我們預計中國大陸第四季度將實現兩位數的增長。我們連續第二個季度加快了市場份額的增長。我想強調的是，中國的波動性問題始於上海關閉期間，我們尤其受到上海關閉的影響。在那一刻，在這 3 個月的關閉期間，我們失去了一些重要的市場份額。好消息是，我們現在基本上已經彌補了低迷時期失去的市場份額。我們重新與總市場份額保持一致，我們預計在第 4 季度，因為與鎖定前時期相比，市場份額的低基數也將實現正增長，這是非同尋常的。我們說他們會嘗試在 1 年內恢復它，我們會做得更好。

The other important thing to underline that linked to this TR issue there is the skin care issue, obviously, because there is a high percentage of skin care, which is a very profitable category for us. And I want to also underline that skin care is growing Ex-TR, skincare is growing globally, plus 6%. So we are growing skin care. We will grow -- we are growing skin care in China Mainland. Air retail is growing ahead of the market that we are building market share in Quarter 3, and we expect to do even more in Quarter 4, and so La Mer is driving this growth with La Mer growing double digit at retail in the quarter in China and Lauder single digit.

與此 TR 問題相關的另一個需要強調的重要事項是皮膚護理問題，顯然，因為皮膚護理的比例很高，這對我們來說是一個非常有利可圖的類別。我還想強調，護膚品正在增長 Ex-TR，護膚品在全球範圍內增長，增長了 6%。所以我們正在發展皮膚護理。我們會成長——我們正在中國大陸發展護膚品。航空零售的增長領先於我們在第 3 季度建立市場份額的市場，我們預計在第 4 季度會做得更多，因此 La Mer 正在推動這一增長，該季度 La Mer 在中國的零售額增長了兩位數和蘭黛個位數。

So the last part of your question is, our different situation versus peers. I would say that if you look at the business overall, the answer of the difference is in the level of stocks in the TR and the volatility and the fact that we are bigger in the historically more exposed to this strong accretive channel that in a moment of crisis obviously, resulted into a bigger negative.

所以你問題的最後一部分是，我們與同行的不同情況。我想說的是，如果您從整體上看業務，差異的答案在於 TR 中的股票水平和波動性，以及我們在歷史上更大的事實更容易受到這一強大的增長渠道的影響危機的明顯，導致了更大的負面影響。

And our next question comes from Chris Carey from Wells Fargo.

我們的下一個問題來自富國銀行的 Chris Carey。

So I guess just digesting these results and taking Dara's question in consideration, I guess it's like APAC and Americas actually exceeded expectations, which in a way probably helps combat this dynamic of it's a category or a brand or a structural issue? I think it's also probably not fully understood that L'Oreal and others have much smaller travel retail businesses or maybe it is understood. But I guess the question is, clearly, you have created a unique business where you're much bigger in travel retail than many of your peers, and this has been something that's been growing over the last several years. And obviously, that created a lot of great tailwinds during the up move, but it's just created an enormous amount of volatility. And I think also a lack of visibility as we've come into this kind of downtrend, right?

所以我想只要消化這些結果並考慮 Dara 的問題，我想這就像亞太地區和美洲實際上超出了預期，這在某種程度上可能有助於解決類別、品牌或結構問題的這種動態？我認為人們可能還沒有完全理解歐萊雅和其他公司的旅遊零售業務要小得多，或者可能已經理解了。但我想問題是，很明顯，你已經創建了一個獨特的業務，在這個業務中，你在旅遊零售方面比許多同行都要大得多，而且這在過去幾年裡一直在增長。顯然，這在上漲過程中創造了很多順風，但它只是創造了巨大的波動性。而且我認為在我們進入這種下降趨勢時也缺乏能見度，對嗎？

And I hear you on rebuilding, demand-building activities and leaning into the market. But I just wonder, does this market need to reset lower before you can really talk about stabilization? Or are we really just -- we had one more quarter or 2 of issues and we're really rebuilding from there, right? And I appreciate Korea and China all have different dynamics. But I think the overall context here is certainly that the travel retail business is creating a ton of volatility for your business.

我聽說你在重建、建立需求的活動和向市場傾斜。但我只是想知道，在你真正談論穩定之前，這個市場是否需要重新設置較低的位置？或者我們真的只是 - 我們還有四分之一或兩個問題，我們真的正在從那裡重建，對嗎？我很欣賞韓國和中國都有不同的動力。但我認為這裡的總體背景肯定是旅遊零售業務正在為您的業務帶來大量波動。

And then just related to that, and I apologize, but the fiscal Q4 guidance range is quite wide, and I think that maybe sees the visibility. Can you maybe just talk about how you might be approaching the concept of guidance given the lack of visibility so that perhaps we can maybe avoid some of these resets? So thank you so much for turning that perspective. Very much appreciate it.

然後與此相關，我道歉，但第四季度財政指導範圍相當廣泛，我認為這可能會看到可見性。鑑於缺乏可見性，您能否談談如何處理指導的概念，以便我們或許可以避免其中的一些重置？所以非常感謝你改變了這個觀點。非常感謝。

Okay. Let me start. Thank you for the question. And our point of view is that, as you said, this is kind of a reset. But then after this reset, travel retail will remain a large, a very important channel because it's an important channel also for consumer acquisition and it's a growing channel. And so to grow global market share, to be strong in travel retail will remain important.

好的。讓我開始吧。感謝你的提問。我們的觀點是，正如您所說，這是一種重置。但在這次重置之後，旅遊零售仍將是一個龐大的、非常重要的渠道，因為它也是獲取消費者的重要渠道，而且是一個不斷增長的渠道。因此，要擴大全球市場份額，強大的旅遊零售業務仍然很重要。

Also in the case of Asia travel retail and China travel retail, it is very important for coverage because in many emerging markets, for sure, in China, the coverage of small cities is possible only via online and via the people travel because the brick and mortars are not there, are only in a part of the city, which is the reason of high productivity in China.

同樣在亞洲旅遊零售和中國旅遊零售的情況下，覆蓋範圍非常重要，因為在許多新興市場，當然，在中國，小城市的覆蓋範圍只能通過在線和人們旅行來實現，因為磚和迫擊砲沒有，只在城市的一部分，這就是中國生產力高的原因。

So travel retail is also a great opportunity for discovering product for the physical experience, for interacting with our product. So -- and it's a very luxury channel, meaning the experience of luxury is very high. So the issue with Travel Retail has been really that during a pandemic, the volatility of travel and the interest and the possibility of travel is so much impacted by regulation change. The pandemic up and downs, et cetera. Obviously, in a moment of a pandemic moment, travel retail has been more difficult to predict and this will be more volatile to anticipate.

因此，旅遊零售也是一個很好的機會，可以通過實際體驗發現產品，與我們的產品進行互動。所以——這是一個非常奢華的頻道，意味著奢華體驗非常高。因此，旅遊零售業的問題實際上在於，在大流行期間，旅遊的波動性以及旅遊的興趣和可能性受到監管變化的影響很大。大流行起起伏伏，等等。顯然，在大流行時期，旅遊零售更難預測，而且預測的波動性更大。

But in terms of the positives of the channel in the long term for brand building, for trial building, for being an accretive and positive profitable channel in the long term remains intact. And so we believe that out of the pandemic, this will remain important channel.

但從長期來看，渠道對品牌建設、試點建設、長期增長和積極的盈利渠道的積極影響仍然完好無損。因此，我們相信，在大流行之後，這仍將是重要的渠道。

Now will this be more balanced the growth? Absolutely. We have a plan and an interest in balancing our growth and balancing the proportion between all our business segments, and we will continue to do that.

現在這會使增長更加平衡嗎？絕對地。我們有一個計劃和興趣來平衡我們的增長和平衡我們所有業務部門之間的比例，我們將繼續這樣做。

The other thing I want to underline that the high inventory as Tracey explained what was the sequence of events and the reason why our retailers and us went for higher inventories at the beginning of the fiscal year, and then we encountered this issue of the slower recovery than anticipated. And remember, the important thing and in a lower recovery, also the retailers want less stock. And so the replenishment get affected as Tracey explained.

另一件事我想強調的是，Tracey 的高庫存解釋了事件的順序以及我們的零售商和我們在財政年度開始時尋求更高庫存的原因，然後我們遇到了復甦緩慢的問題超出預期。請記住，重要的是，在較低的複蘇中，零售商也希望減少庫存。因此，正如 Tracey 解釋的那樣，補貨受到影響。

So in this situation, is also impacted by our relatively long supply chain where you need to order and then after months you receive it. The relatively long supply chain has an impact on the fact that the retailers when they decide their stock for us, which is not true for every one of our peers, they need to make a bet several months before when they receive the products. And that issue, obviously, in the middle of the worst volatility we have experienced has been difficult for our retailers and for us to estimate with such an anticipation.

因此，在這種情況下，也受到我們相對較長的供應鏈的影響，您需要在該供應鏈中訂購，然後在幾個月後收到。相對較長的供應鏈影響了這樣一個事實，即零售商在為我們決定庫存時（並非我們每個同行都如此），他們需要在收到產品之前幾個月進行賭注。顯然，在我們經歷過的最嚴重波動中，這個問題對於我們的零售商和我們來說都很難以這樣的預期進行估計。

So we are acting on this. All the investments we have done, which in part are visible in our short-term profitability pressure, like the manufacturing that we call Sakura in Japan that will have the new distribution center in Mainland China and in the near future in Hainan. Actually the old design is investment to shorten lead time. Now the shortening of the lead time would also reduce the risk of being wrong in the choices in volatile moments.

所以我們正在採取行動。我們所做的所有投資，在一定程度上可以從我們的短期盈利壓力中看出，例如我們在日本稱為 Sakura 的製造業將在中國大陸和不久的將來在海南擁有新的配送中心。實際上，舊設計是為了縮短交貨期而進行的投資。現在，提前期的縮短也將降低在動盪時刻做出錯誤選擇的風險。

And so assuming that a certain amount of volatility will continue even after the pandemic, we have done investment to reduce our risk and to our ability to manage better in a volatile period.

因此，假設即使在大流行之後，一定程度的波動仍將繼續，我們已經進行了投資以降低風險，並提高我們在波動時期更好地管理的能力。

The other thing is, let's not under evaluate the investment in the R&D center in Shanghai that will reduce -- will increase the speed of innovation, reduce the time lines of innovation as well and will add another impact of better ability to make the right decision even volatility because faster reactivity. In other words, we have built agility. And agility is one of the things that will make our future ability to forecast TR in the correct way.

另一件事是，我們不要低估對上海研發中心的投資，這將減少 - 將提高創新速度，縮短創新時間線，並將增加做出正確決策能力的另一個影響甚至波動，因為更快的反應性。換句話說，我們已經建立了敏捷性。敏捷性是使我們未來能夠以正確方式預測 TR 的因素之一。

So in summary, we count and continue having a stronger business in the future. There is a reset that our retailers and the markets are doing for us, but is -- but after that we will continue to grow -- but we will continue to grow in a more balanced way and with better agility to make the right forecasting.

因此，總而言之，我們計算並在未來繼續擁有更強大的業務。我們的零售商和市場正在為我們做一個重置，但是——但在那之後我們將繼續增長——但我們將繼續以更平衡的方式增長，並以更好的敏捷性做出正確的預測。

So as Fabrizio said, we have made some structural changes to the business that going forward should allow us to manage volatility. Hopefully, we won't see the level of volatility that we've seen certainly over the past year, but we will have more agility in our operations.

因此，正如 Fabrizio 所說，我們已經對業務進行了一些結構性調整，未來應該能夠讓我們管理波動性。希望我們不會看到我們在過去一年中肯定看到的波動水平，但我們的運營將更加靈活。

To your question on the fourth quarter and what's in our implied guidance as it relates to travel retail, coming off of the trends that we're seeing in March, the progressive trends that we've seen through the third quarter, we're expecting that our retail sales in travel retail will be up double digit. And our net sales are down double digits; down double digit, more than our retails are up. So again, this is another quarter of trying to whittle down the inventory that's in the trade, hence the impact that you see in the fourth quarter.

關於你關於第四季度的問題以及我們與旅遊零售相關的隱含指導，從我們在 3 月份看到的趨勢，我們在第三季度看到的漸進趨勢，我們期待我們在旅遊零售業的零售額將增長兩位數。我們的淨銷售額下降了兩位數；下降了兩位數，超過了我們零售業的增長。因此，這又是試圖減少交易庫存的另一個季度，因此您在第四季度看到了影響。

And as Fabrizio said, much of that being our very strong skin care business. So we do expect, as I said in my prepared remarks that some of this will bleed into the first quarter and perhaps a little bit into the second quarter, but get progressively better until we get to the inventory levels that both we and our customers want in the trade.

正如 Fabrizio 所說，其中很大一部分是我們非常強大的護膚業務。所以我們確實預計，正如我在準備好的發言中所說，其中一些將流入第一季度，可能會流入第二季度，但會逐漸好轉，直到我們達到我們和我們的客戶都想要的庫存水平在交易中。

We are working with and partnering with our customers on (inaudible) programs also now that traffic is back in airports. We are investing in advertising in airports. We are re-employing some of the sales staff that was not there when the airports were empty. And we are working with our brands on great programs and promotions for our customers as they return to airport. So our travel retail team has been quite busy working with our retailers to recapture the growth that we're now seeing in particular in Hainan and hopefully soon in Korea as well.

現在機場的交通已經恢復，我們正在與我們的客戶合作開展（聽不清）計劃。我們正在投資機場廣告。我們正在重新僱用一些在機場空無一人時不在場的銷售人員。我們正在與我們的品牌合作，為我們的客戶返回機場時提供精彩的計劃和促銷活動。因此，我們的旅遊零售團隊一直忙於與我們的零售商合作，以重新獲得我們現在看到的增長，尤其是在海南，希望很快也能在韓國看到。

Our next question comes from Rupesh Parikh from Oppenheimer.

我們的下一個問題來自奧本海默的 Rupesh Parikh。

So obviously, this year, you had a step back in your earnings power. I'm just kind of -- I'm trying to get a sense in terms of how you guys think about the achievability of getting back to the 20% operating margins in earnings north of 7. So I'm just trying to better understand just how you guys are thinking about the profit recovery.

很明顯，今年，您的盈利能力倒退了一步。我只是有點——我想了解一下你們如何看待將收益恢復到 7 以北的 20% 營業利潤率的可實現性。所以我只是想更好地理解你們是如何考慮利潤恢復的。

So thank you for the question. As I said in the prepared remarks, we expect off of this year, which obviously has been a big setback year for the reasons that we've spoken about, our highest margin category and a very high-margin channel being pressured. We do expect a progressive recovery in margin, but that does mean not back to 19% in fiscal '24. And so we are taking cost actions, as we always do. We certainly have cost control measures in place as it relates to areas like headcount, consulting expenses, other expenses as well. And we are in the process now of finalizing our budgets for fiscal '24. And certainly, we'll have better information for you in terms of what that margin progression looks like for fiscal '24 in our August call. But it certainly will be more than 50 basis points of margin expansion off of this level, but certainly not to the 19% level.

謝謝你的提問。正如我在準備好的發言中所說，我們預計今年會結束，由於我們所說的原因，這顯然是一個重大挫折的一年，我們的最高利潤率類別和非常高利潤率的渠道受到壓力。我們確實預計利潤率會逐步回升，但這並不意味著在 24 財年不會回到 19%。因此，我們一如既往地採取成本行動。我們當然有成本控制措施，因為它涉及到員工人數、諮詢費用和其他費用等領域。我們現在正在敲定 24 財年的預算。當然，我們會在 8 月的電話會議上為您提供更好的信息，說明 24 財年的利潤率進展情況。但它肯定會比這個水平擴大 50 個基點以上，但肯定不會達到 19% 的水平。

And our next question comes from Oliver Chen from TD Cowen.

我們的下一個問題來自 TD Cowen 的 Oliver Chen。

I was curious about what you're most concerned about for ongoing risk related to your guidance as we've seen, and you called out promos and volatility as well as there are uncontrollable factors about regarding the inventory in the channel. And as we think more broadly, you called out previously losing share in independent brands and opportunities in loyalty as well as customer data programs. Love your take on how that may be an opportunity going forward as well.

正如我們所見，我很好奇你最關心的是與你的指導相關的持續風險，你提到了促銷和波動性，以及關於渠道庫存的不可控因素。當我們更廣泛地思考時，你提到了之前失去的獨立品牌份額和忠誠度以及客戶數據計劃的機會。喜歡你對這也可能是一個前進的機會的看法。

Yes. I mean in terms of -- in the prepared remarks, Oliver, we talked about areas that we are gaining share. And so I think we are seeing strong momentum in some of the recovery markets that are gaining share inclusive of China. And China is a real indicator for what we can expect when some of the areas that have been suppressed this year like travel retail, Hainan and Korea when Chinese traveling consumers return to Korea.

是的。我的意思是——在準備好的發言中，奧利弗，我們談到了我們正在獲得份額的領域。因此，我認為我們在包括中國在內的一些正在獲得份額的複蘇市場中看到了強勁勢頭。當中國旅遊消費者返回韓國時，當旅遊零售、海南和韓國等今年受到抑制的一些地區時，中國是我們可以期待的一個真實指標。

So I think those things are quite positive. We have strong innovation programs as well to support our growth for certainly next year as well. And the fact, again, the biggest volatility that we've seen this year has been in some of the COVID restrictions in certain markets that have been lifted. And so now it's a matter of the timing and pace of that recovery, we feel a bit better, but I'm a bit cautious, obviously, given what we've experienced this year. But recognizing that, that trigger is one that really has created as much volatility for the reasons that we have already spoken about, we are feeling a bit better.

所以我認為這些事情是非常積極的。我們也有強大的創新計劃來支持我們明年的增長。事實上，我們今年看到的最大波動再次出現在某些已取消的某些市場的 COVID 限制中。所以現在是複甦的時間和步伐的問題，我們感覺好多了，但顯然，考慮到我們今年的經歷，我有點謹慎。但認識到，由於我們已經談到的原因，這個觸發因素確實造成了同樣多的波動，我們感覺好一點了。

There will be still volatility certainly in the fourth quarter, and there'll be volatility next year. But we have always been a company that's been relatively good at managing volatility. This year, given the severity of it, and the severity in the channel of operation that had happened and has caused us to have these results. But rest assured, myself, Fabrizio and the entire management team are diligently working on recovering our profitability and certainly recovering growth, and our brands continue to be very strong with consumers.

四季度肯定還會有波動，明年還會有波動。但我們一直是一家相對擅長管理波動性的公司。今年，考慮到它的嚴重性，以及已經發生並導致我們取得這些結果的運營渠道的嚴重性。但請放心，我本人、Fabrizio 和整個管理團隊都在努力恢復我們的盈利能力，當然也在恢復增長，我們的品牌在消費者中繼續保持強勁勢頭。

Yes. And just to add, just for clarity, Tracey explained everything, but I want to clarify, our retail global is growing and there are very -- our key markets, we're also in growing market share. I really said it, but I want to repeat it, the market share growth in China Mainland is really encouraging because we already made up of what was lost in the Shanghai closure period.

是的。為了清楚起見，特蕾西解釋了一切，但我想澄清一下，我們的全球零售業正在增長，而且我們的主要市場非常 - 我們的市場份額也在增長。我真的說過，但我想再說一遍，中國大陸的市場份額增長確實令人鼓舞，因為我們已經彌補了上海封城期間的損失。

The market share growth in EMEA is very strong. The market share growth in many emerging markets and emerging markets in total is very strong. I said it before, our emerging markets are growing 17%. The market is growing by less than 17% in some of the emerging markets. In North America, we are growing again, although not in the U.S., not yet market share, but we are growing market shares in Latin America and many other places of the world.

EMEA 的市場份額增長非常強勁。許多新興市場和新興市場總體的市場份額增長非常強勁。我之前說過，我們的新興市場增長了 17%。一些新興市場的市場增長率不到 17%。在北美，我們正在再次增長，雖然不是在美國，市場份額還沒有增長，但我們在拉丁美洲和世界許多其他地方的市場份額正在增長。

So our demand is very strong. And the other thing that I mentioned already, the several brands, which are doing well that are very encouraging. But I believe in this quarter, the key attention is on skin care. And on skin care, we have La Mer growing, Estée Lauder doing well also in China. We have double-digit skin care growth in Europe and Latin America. We have single-digit skin care growth in U.S., but again, back to growth. We have an exciting innovation plan as Tracey said, but let me give you a few examples.

所以我們的需求非常強烈。我已經提到的另一件事是，幾個品牌做得很好，非常令人鼓舞。但我相信在這個季度，重點關注的是皮膚護理。在護膚方面，我們有 La Mer 增長，雅詩蘭黛在中國也做得很好。我們在歐洲和拉丁美洲有兩位數的護膚增長。我們在美國有個位數的護膚品增長，但再次恢復增長。正如 Tracey 所說，我們有一個令人興奮的創新計劃，但讓我舉幾個例子。

We just launched Clinique Moisture Surge 100 Hour SPC, so new sun protection and The ordinary, Multi-Peptide Eye Serum. We have launched The Ordinary in India, the Middle East with extraordinary results. M·A·C Hyper Real, meaning the skin care market, the skin care Bobbi Brown are very strong. So all the skin care makeup brands is a new trend that we are leveraging very well with good success. And importantly, we have our hero upgrades in the high luxury areas, so La Mer Soft Cream, Re-Nutriv Ultimate Diamond, which are going out. They are very important for the Asia trends where luxury skin care is growing more than skin care in general on average.

我們剛剛推出了 Clinique Moisture Surge 100 Hour SPC，這是一款全新的防曬產品和 The ordinary Multi-Peptide Eye Serum。我們在印度、中東推出了 The Ordinary，取得了非凡的成果。 M·A·C Hyper Real，意思是護膚品市場，Bobbi Brown的護膚品很強。因此，所有護膚彩妝品牌都是我們很好地利用並取得成功的新趨勢。重要的是，我們在高級奢侈品領域進行了英雄升級，因此即將推出的 La Mer Soft Cream、Re-Nutriv Ultimate Diamond。它們對亞洲趨勢非常重要，在亞洲，奢侈護膚品的平均增長速度超過一般護膚品。

So a lot of signs of strength in the fundamentals of consumption of demand of desirability of our brands are very evident. We are going through an inventory issue. And with the profit pressure created by this in high inventory issue. And we are going to focus on sellout retail acceleration and profit rebuilding as the next steps.

因此，我們品牌的需求消費基本面的許多跡像都非常明顯。我們正在處理庫存問題。以及由此帶來的高庫存問題帶來的利潤壓力。作為下一步，我們將專注於加速零售銷售和重建利潤。

And we have time for one additional question. This question comes from Lauren Lieberman from Barclays.

我們還有時間再問一個問題。這個問題來自巴克萊銀行的 Lauren Lieberman。

Great. So one thing that hasn't come up is just visibility into what's in "inventory" but outside of traditional retail. And we know that and probably you have spoken many times over the years about travel corridors shifting and particularly now when we think about the further development of Asia travel retail broadly. But there's also shoppers that move around and buy in bulk. And there's been a lot of conversation in the industry about visibility and controls around that practice and the degree to which that was a huge driver of Korea travel retail during these lighter regulations, let's call them supportive measures.

偉大的。因此，還沒有出現的一件事就是了解“庫存”中但在傳統零售之外的東西。我們知道，多年來您可能也多次談到旅遊走廊的轉變，尤其是現在我們廣泛考慮亞洲旅遊零售業的進一步發展。但也有購物者四處走動並批量購買。業內有很多關於這種做法的可見性和控制的討論，以及在這些較寬鬆的法規期間，這種做法在多大程度上是韓國旅遊零售業的巨大推動力，我們稱之為支持性措施。

So I heard your comments on encouraging progression on share and retail sales turning positive in Hainan and so on. But I was curious about what you're doing, I guess, a, visibility into kind of untracked retail, if you will. B, anything that you were thinking about changing control wise to sort of have a better read on the quality of sales going out the door from some of your travel retail channels?

所以我聽到了你關於鼓勵海南股票和零售銷售轉正等方面的評論。但我很好奇你在做什麼，我想，如果你願意的話，可以看到一種未追踪的零售。 B，您是否正在考慮明智地改變控制以更好地了解您的一些旅遊零售渠道的銷售質量？

And then finally, kind of putting a cherry on all of it, is do you expect the inventory drawdown dynamic to be completed in the fourth quarter? Or should we think about there still being a mismatch between sell-in, sell and being down and sell through into the first quarter of '24.

最後，有點像櫻桃一樣，你是否預計庫存縮減動態將在第四季度完成？或者我們是否應該考慮在 24 年第一季度的賣出、賣出和下跌之間仍然存在不匹配。

So Lauren, let me take that last one. Yes, we do expect that our sales will be down again in the first quarter and pick up in the second quarter. And so that's the cadence that we're seeing right now. Again, much depends on retail sales. And again, as we said, we're encouraged by how retail sales have picked up in Hainan, not as much in Korea at the moment, but we remain encouraged that, that will happen as well.

所以勞倫，讓我拿最後一個。是的，我們確實預計我們的銷售額將在第一季度再次下降並在第二季度回升。這就是我們現在看到的節奏。同樣，很大程度上取決於零售額。再一次，正如我們所說，我們對海南的零售額回升感到鼓舞，目前在韓國沒有那麼多，但我們仍然感到鼓舞，這也會發生。

So the pace of retail, which has been slower, again, than we expected this year, will determine how quickly we resume shipments. We do have some very exciting new products that we do hope that we can actually ship them in the first and second quarter. But again, with the activities that we have going on with our travel retail partners, I believe that we'll see a continued acceleration of retail like we started to see in this quarter.

因此，今年零售業的步伐再次低於我們的預期，這將決定我們恢復發貨的速度。我們確實有一些非常令人興奮的新產品，我們希望我們能夠在第一季度和第二季度實際發貨。但同樣，隨著我們與旅遊零售合作夥伴開展的活動，我相信我們將看到零售業的持續加速，就像我們在本季度開始看到的那樣。

Yes. And Lauren, to answer the first part of your question. We sell to our authorized retail customer. We do not sell directly the goods. However, as you alluded to, during COVID, there have been some temporary government policies, for example, in Korea, were put in place to support the travel businesses and the travel retailers in these very tough moments where they raised to go bankrupt because everything was closed.

是的。勞倫，回答你問題的第一部分。我們出售給我們的授權零售客戶。我們不直接銷售商品。然而，正如您提到的，在 COVID 期間，政府出台了一些臨時政策，例如在韓國，政府出台了一些臨時政策，以支持旅遊企業和旅遊零售商在這些非常艱難的時刻面臨破產，因為一切都因為一切關門了。

So now that -- and you are right, there is no complete visibility on that part. There was no complete visibility on that part, what they were doing in the moment when the policies will allow this. Now these policies are changing. There is an interest of the industry in general and our retailers, which is the most important factors in this. There is an interest in going back to regular travel, as regular travel go because -- by the way, this is a more profitable and more interesting business for them as well.

所以現在 - 你是對的，那部分沒有完整的可見性。這部分沒有完全可見性，他們在政策允許的那一刻正在做什麼。現在這些政策正在改變。整個行業和我們的零售商都有興趣，這是其中最重要的因素。有興趣恢復定期旅行，因為定期旅行是因為——順便說一下，這對他們來說也是一項更有利可圖、更有趣的業務。

So now the airport traffic is gradually recovering. We expect a rebalancing of the total market. And because of this, we expect an increased visibility on all of these areas. And we are also putting extra focus, as Tracey explained before, on retail sellout on to regular travelers with new investment. We are rebuilding the people, the staff in the airports. We are rebuilding the advertising there, all what Tracey already established.

所以現在機場的交通正在逐漸恢復。我們預計整個市場將重新平衡。正因為如此，我們希望所有這些領域的知名度都能提高。正如 Tracey 之前解釋的那樣，我們還特別關注通過新投資向普通旅行者進行零售銷售。我們正在重建機場的人員和工作人員。我們正在重建那裡的廣告，所有這些都是特蕾西已經建立的。

That with our interest is to support our retailers in this transition, and we are really pushing building this transition at the maximum speed. And so there's been during COVID less visibility, there will be more visibility in the future and more control.

我們的興趣是在這一轉變中支持我們的零售商，我們確實正在以最快的速度推動建立這一轉變。因此，在 COVID 期間可見度較低，未來會有更多可見度和更多控制。

And ladies and gentlemen, that will conclude today's question-and-answer session, as well as today's presentation. If you were unable to join for the entire call, a playback will be available at 1:00 p.m. Eastern time today through May 17. To hear a recording of the call, please dial (877) 344-7529 and use passcode 8161271. That concludes today's Estée Lauder conference call. I'd like to thank you for participation and wish you all a good day.

女士們，先生們，今天的問答環節以及今天的演講將結束。如果您無法參加整個通話，將在下午 1:00 提供回放。東部時間今天至 5 月 17 日。要收聽電話錄音，請撥打 (877) 344-7529 並使用密碼 8161271。今天的雅詩蘭黛電話會議到此結束。感謝您的參與，並祝大家度過愉快的一天。