elf Beauty Inc (ELF) 2016 Q3 法說會逐字稿

Good afternoon, and welcome to the e.l.f. Beauty third quarter 2016 earnings call. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal remarks. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anne Rakunas of ICR. You may begin.

下午好，歡迎來到 e.l.f.美妝2016年第三季度財報電話會議。此時所有參與者都處於只聽模式。正式發言後將舉行簡短的問答環節。 （操作員說明）。提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，ICR 的 Anne Rakunas。你可以開始了。

Good afternoon everyone. Thank you for joining us today to discuss e.l.f. Beauty Inc.'s third quarter 2016 earnings results. A copy of today's press release is available in the investor relations section of e.l.f.'s website. A recording of the call will also be available for 30 days on elfcosmetics.com. As a reminder, this call contains forward-looking statements that are based on management's beliefs and assumptions, expectations, estimates and projections. These statements, including those relating to the Company's fiscal year 2016 outlook, are subject to known and unknown risks and uncertainties, and therefore actual results may differ materially.

大家下午好。感謝您今天加入我們討論 e.l.f. Beauty Inc. 2016 年第三季度盈利報告。今天新聞稿的副本可在 e.l.f. 網站的投資者關係部分獲取。通話錄音也將在 elfcosmetics.com 上保留 30 天。提醒一下，本次電話會議包含基於管理層的信念和假設、期望、估計和預測的前瞻性陳述。這些陳述，包括與公司 2016 財年展望相關的陳述，受到已知和未知的風險和不確定性的影響，因此實際結果可能存在重大差異。

Important factors that may cause actual results to differ from those expressed or implied and such forward-looking statements are detailed in today's press release, and the Company's SEC filings.

可能導致實際結果與明示或暗示的結果不同的重要因素以及此類前瞻性陳述在今天的新聞稿和公司向 SEC 提交的文件中進行了詳細說明。

In addition, the Company's presentation today includes information presented on a non-GAAP basis. We refer you to the press release the Company issued this afternoon for a reconciliation of the differences between the non-GAAP presentations, and the most directly comparable GAAP measures. With us from management today are Tarang Amin, Chairman and Chief Executive Officer, and John Bailey, President and Chief Financial Officer. It is now my pleasure to turn the call over to Tarang.

此外，公司今天的演示文稿還包括基於非公認會計原則（Non-GAAP）的信息。我們建議您參閱公司今天下午發布的新聞稿，以了解非公認會計原則表述與最直接可比的公認會計原則衡量指標之間的差異。今天與我們一起出席的管理層包括董事長兼首席執行官塔朗·阿明 (Tarang Amin) 和總裁兼首席財務官約翰·貝利 (John Bailey)。現在我很高興將電話轉給塔朗。

Thank you Anne and good afternoon, everyone. Similar to our roadshow, John and I will "tag team" as we walk through our results. We are pleased to share strong performance on our first call as a public company. Q3 highlights include an 11% increase in net sales, and a 650 basis point expansion in gross margin versus last year. These results demonstrate progress toward our mission to make luxurious beauty accessible for all women to play beautifully. We continue to engage some of the best consumers in beauty, by delivering high quality cosmetics at an extraordinary value. As a result, we drove sales growth even as compared to our third quarter 2015 period that included the national launch into 6,900 CVS stores.

謝謝安妮，大家下午好。與我們的路演類似，約翰和我將在瀏覽結果時“標記團隊”。我們很高興在作為上市公司的第一次電話會議上分享強勁的業績。第三季度的亮點包括淨銷售額增長 11%，毛利率較去年增長 650 個基點。這些結果表明我們在實現我們的使命方面取得了進展，即讓所有女性都能享受到奢華的美麗，享受美麗的時光。我們通過提供超值的高品質化妝品，繼續吸引一些最優秀的美容消費者。因此，與 2015 年第三季度（包括在全國范圍內開設 6,900 家 CVS 商店）相比，我們推動了銷售增長。

We have four key growth strategies to help realize our mission. Build a great brand, lead innovation, expand brand penetration, and drive world-class operations.

我們有四個關鍵增長戰略來幫助實現我們的使命。打造偉大品牌，引領創新，擴大品牌滲透，推動世界一流運營。

Here are some Q3 highlights on the progress of our strategy:

以下是我們戰略進展的一些第三季度亮點：

Our first strategy is to Build a Great Brand. e.l.f. is an authentic brand that young, diverse make up enthusiasts love. Relative to the overall cosmetics category, we are twice as developed among Millennials, over-developed among Hispanics and have strong appeal with make-up enthusiasts, the consumers who are driving the category. Our approach to engage consumers is rooted in social media and digital platforms.

我們的首要戰略是打造偉大品牌。 e.l.f.是年輕、多元化的彩妝愛好者喜愛的正宗品牌。相對於整個化妝品類別，我們在千禧一代中的發展程度是其兩倍，在西班牙裔中發展過度，並且對彩妝愛好者（推動該類別的消費者）具有強大的吸引力。我們吸引消費者的方法植根於社交媒體和數字平台。

As an example, this past quarter, we launched e.l.f. Beautyscape, a social activation engaging 50 of our beauty influencers. Through this event we created an experience that featured the best of e.l.f. We shared some of our latest innovations, inspired participants with make-up education and tips, and enabled strong connections and community building. The program delivered a 25% increase in Instagram followers and reached a combined community of 53 million across social media platforms. Through authentic activations such as Beautyscape, we believe we can further build awareness and deepen engagement with our consumers.

舉個例子，上個季度，我們推出了 e.l.f. Beautyscape，一項社交活動，吸引了 50 名美容影響者參與。通過這次活動，我們創造了一種體現 e.l.f. 精華的體驗。我們分享了一些最新的創新成果，通過化妝教育和技巧啟發參與者，並建立了牢固的聯繫和社區建設。該計劃使 Instagram 粉絲數量增加了 25%，跨社交媒體平台的社區總數達到 5300 萬。通過 Beautyscape 等真實的活動，我們相信我們可以進一步提高消費者的認知度並加深與消費者的互動。

This quarter we also launched our loyalty program, Beauty Squad, and enrolled 80,000 consumers in just the first six weeks. This program provides an important platform to personalize our communications, and further engage with our makeup enthusiasts. Our vision is to build deeper relationships with our consumers, by encouraging and rewarding them to continue engaging and shopping with e.l.f. As we continue to focus on building a great brand, we plan to expand this program, strengthen our CRM capabilities and deliver more fun, relevant content for our consumers.

本季度，我們還推出了忠誠度計劃 Beauty Squad，僅在前六週就吸引了 80,000 名消費者。該計劃提供了一個重要的平台來個性化我們的溝通，並進一步與我們的化妝愛好者互動。我們的願景是通過鼓勵和獎勵消費者繼續與 e.l.f. 互動和購物，與消費者建立更深層次的關係。隨著我們繼續專注於打造一個偉大的品牌，我們計劃擴展該計劃，增強我們的 CRM 功能，並為我們的消費者提供更多有趣、相關的內容。

Our second strategy is to Lead Innovation. e.l.f. has a strong track-record of leading innovation and can introduce new items from idea to on-line in as few as 20 weeks. In Q3, we launched 20 items on elfcosmetics.com across eyes, lips, face, tools and skin care. One highlight was the introduction of our Beautifully Precise Brush Collection, an example of our first to mass innovation bringing prestige-inspired innovation first to the mass market. At price points ranging from $5 to $12, these brushes are available at a fraction of prestige prices. Since previewing the brushes with influencers at our Beautyscape event, the collection has garnered significant social media and PR interest, delivering over 200 million impressions. The initial consumer response has also been outstanding with an average on-line consumer rating of 4.8 out of 5 stars.

我們的第二個戰略是引領創新。 e.l.f.擁有領先創新的良好記錄，可以在短短 20 週內推出從創意到上線的新產品。第三季度，我們在 elfcosmetics.com 上推出了 20 款產品，涉及眼部、唇部、面部、工具和皮膚護理。其中一個亮點是推出了我們精美精準的刷子系列，這是我們首次將受聲望啟發的創新帶入大眾市場的大規模創新的一個例子。這些刷子的價格從 5 美元到 12 美元不等，價格僅為高端產品的一小部分。自從在我們的 Beautyscape 活動中與有影響力的人一起預覽刷子以來，該系列已經引起了社交媒體和公關的極大興趣，產生了超過 2 億次的展示。最初的消費者反應也非常出色，在線消費者平均評分為 4.8 星（滿分 5 星）。

Our third strategy is to Expand Brand Penetration. e.l.f. is a true multi-channel brand, with strength across leading national retailers, e-commerce, and our own e.l.f. stores. We are able to offer our retail partners high sales productivity per linear foot of space, multiple units per transaction, and incremental sales that help grow their categories. We have national distribution at Target, Walmart, CVS and other leading retailers. A recent win for this quarter is launching e.l.f. at ulta.com, with initial sales being quite promising. We continued our international expansion by entering all doors in Walmart Canada. Importantly, our growth remains quite balanced, with two-thirds of our year to date growth with national retailers coming from existing doors, and one-third coming from new doors.

我們的第三個戰略是擴大品牌滲透率。 e.l.f.是一個真正的多渠道品牌，在領先的全國零售商、電子商務和我們自己的 e.l.f. 領域擁有實力。商店。我們能夠為零售合作夥伴提供每線性英尺空間的高銷售效率、每筆交易的多個單位以及有助於擴大其品類的增量銷售。我們在塔吉特 (Target)、沃爾瑪 (Walmart)、CVS 和其他領先零售商都有全國分銷。本季度最近的一項勝利是推出 e.l.f.在 ulta.com 上，最初的銷售非常有希望。我們進入沃爾瑪加拿大的所有門店，繼續國際擴張。重要的是，我們的增長仍然相當平衡，今年迄今為止，全國零售商的增長有三分之二來自現有門店，三分之一來自新門店。

We continue to focus on the development of our direct business, which includes both e-commerce and our e.l.f. branded stores. E-commerce was supported during the quarter by the launch of new products, our first beauty influencer product collaborations, and the introduction of the Beauty Squad loyalty program. We also continue to see strength leveraging our core e-commerce understanding at e-tailers, including Amazon. We opened seven e.l.f. stores in the quarter, to bring our total to 15, including our first California stores, with two locations in the Los Angeles metropolitan area. We believe our stores provide a great opportunity for us to connect with our consumers in an experiential format, and drive both awareness and engagement.

我們繼續專注於直接業務的發展，其中包括電子商務和 e.l.f.品牌商店。本季度電子商務得到了新產品的推出、我們的首次美容影響者產品合作以及 Beauty Squad 忠誠度計劃的推出的支持。我們還繼續看到利用我們對包括亞馬遜在內的電子零售商的核心電子商務理解的優勢。我們開了七個 e.l.f.本季度我們的門店總數達到 15 家，其中包括我們在加州的第一家門店，其中兩家門店位於洛杉磯都會區。我們相信，我們的商店為我們提供了一個絕佳的機會，以體驗式的方式與消費者建立聯繫，並提高認知度和參與度。

Our fourth strategy is to Drive World-Class operations. e.l.f. has a long history of leveraging its operations advantage, enabling us to source high quality cosmetics at an extraordinary value. World-class operations start with World-Class people. In key management hires during the quarter, we appointed Jon Fieldman SVP - operations. Jon has over 20 years in various supply chain leadership roles at leading consumer goods companies. I have worked with Jon for over 15 years. He was my operations leader on my Clorox businesses and at Schiff Nutrition. I look forward to Jon bringing continued process discipline to expand our operations advantage.

我們的第四個戰略是推動世界級運營。 e.l.f.長期以來，我們一直利用其運營優勢，使我們能夠以非凡的價值採購高品質的化妝品。世界一流的運營始於世界一流的人才。在本季度的關鍵管理層招聘中，我們任命喬恩·菲爾德曼 (Jon Fieldman) 高級副總裁 - 運營。 Jon 在領先的消費品公司擔任過各種供應鏈領導職務超過 20 年。我與 Jon 共事超過 15 年。他是我的 Clorox 業務和 Schiff Nutrition 的運營主管。我期待喬恩帶來持續的流程紀律，以擴大我們的運營優勢。

Other key hires for the quarter include a new Vice President of Creative, most recently at Estee Lauder, and several operations hires who bring further lean manufacturing and planning discipline to e.l.f. In Q3, we also welcomed Kirk Perry to the e.l.f. Board of Directors. Kirk has over 20 years of consumer products leadership experience at Procter & Gamble and is currently President, Google Brand Solutions, where he is at the epicenter of the changes in consumer engagement. We look forward to Kirk providing his business and digital leadership to our Board.

本季度的其他關鍵員工包括一位新的創意副總裁（最近任職於雅詩蘭黛），以及幾名運營員工，他們為 e.l.f. 帶來了進一步的精益製造和規劃紀律。在第三季度，我們還歡迎柯克·佩里 (Kirk Perry) 加入 e.l.f.董事會。 Kirk 在寶潔公司擁有 20 多年的消費產品領導經驗，目前擔任 Google 品牌解決方案總裁，他是消費者參與度變革的中心人物。我們期待柯克為我們的董事會提供他的業務和數字領導力。

Along with key additions to the team, we completed the transition to our state of the art distribution facility in Ontario, California. This facility triples our distribution capacity and provides strong fulfillment capability across national retailers, e-commerce, and e.l.f. stores.

隨著團隊的重要補充，我們完成了向加利福尼亞州安大略省最先進的分銷設施的過渡。該設施使我們的分銷能力增加了兩倍，並為全國零售商、電子商務和 e.l.f. 提供強大的履行能力。商店。

In summary, we continue to make progress on our growth strategy and remain excited about our business, as we begin the final quarter of the year. I will now turn it over to John to provide an update on our financial progress.

總之，隨著今年最後一個季度的開始，我們繼續在增長戰略上取得進展，並對我們的業務保持興奮。我現在將其交給約翰，以提供我們財務進展的最新信息。

I will begin by reviewing the details of our third quarter results and then Tarang will provide our outlook for the full year. Before continuing I would like to note that we will be speaking to both GAAP and adjusted results. You can find a detailed description of adjustments to GAAP results in the earnings release that we issued this afternoon. We believe this presentation provides investors with a better analysis of the underlying performance of our business.

我將首先回顧我們第三季度業績的詳細信息，然後塔朗將提供我們對全年的展望。在繼續之前，我想指出，我們將討論公認會計原則和調整後的結果。您可以在我們今天下午發布的收益報告中找到 GAAP 結果調整的詳細說明。我們相信，本演示文稿可以讓投資者更好地分析我們業務的基本業績。

For the third quarter, net sales increased 11%, or $5.5 million, to $56.3 million. In our national retailer business, we saw growth within existing doors as a result of strong productivity increases, fueled by our innovation model. We also grew our direct business, which includes both ecommerce and our e.l.f. branded stores. Importantly we had a meaningful reduction in dollar off promotional activity in ecommerce, with 90% fewer price-off days as compared to the same quarter last year.

第三季度淨銷售額增長 11%，即 550 萬美元，達到 5,630 萬美元。在我們的全國零售商業務中，我們看到了現有業務的增長，這是由於我們的創新模式推動了生產力的強勁增長。我們還發展了直接業務，其中包括電子商務和 e.l.f.品牌商店。重要的是，我們在電子商務領域的促銷活動大幅減少了折扣，與去年同期相比，折扣天數減少了 90%。

Gross margin expanded by 650 basis points to 58% from 51%, driven by our "sweeten the mix" initiative. Sweeten the mix is a systematic, consumer-led approach to driving margin improvement in the business. At the core of "sweeten the mix" is our innovation process, both in terms of our flow of new items with margin profiles that are accretive to that of the overall company, as well as existing items that we are able to improve from a consumer experience standpoint while also increasing margin.

在我們“甜蜜組合”計劃的推動下，毛利率從 51% 增長了 650 個基點至 58%。 Sweeten the mix 是一種以消費者為主導的系統性方法，旨在推動業務利潤率的提高。 “使組合變得更加甜蜜”的核心是我們的創新流程，無論是我們的新產品流（其利潤狀況可增加整個公司的利潤），還是我們能夠從消費者那裡改進的現有產品經驗立場，同時也增加利潤。

On an adjusted basis, selling and administrative expenses as a percentage of net sales were 43% compared to 33% in the third quarter of 2015. The de-leverage in SG&A on an adjusted basis was primarily driven by strategic investments to support our growth. These investments include higher operational costs related to the transition of our warehousing operation from New Jersey to California, and additions to key headcount, as well as higher information technology costs for infrastructure improvements.

調整後的銷售和管理費用占淨銷售額的比例為43%，而2015 年第三季度為33%。調整後的銷售及管理費用去槓桿化主要是由戰略投資推動的，以支持我們的增長。這些投資包括與我們的倉儲業務從新澤西州轉移到加利福尼亞州相關的更高的運營成本、增加關鍵人員以及改善基礎設施所需的更高的信息技術成本。

Adjusted EBITDA was $11.7 million, a decrease from $12.3 million in the third quarter of 2015. The decrease was driven by the investments in SG&A I just mentioned, as well as the benefit we saw in Q3 in 2015 from the initial shipments to 6,900 CVS stores.

調整後EBITDA 為1,170 萬美元，較2015 年第三季度的1,230 萬美元有所下降。下降的原因是我剛才提到的SG&A 投資，以及我們在2015 年第三季度看到的向6,900 家CVS 商店發貨所帶來的收益。

Adjusted interest expense increased $1.1 million to $4.3 million, largely reflecting the incremental term loan borrowings we incurred in relation to the June 2016 dividend recapitalization transaction. During the third quarter we completed our initial public offering and utilized a portion of the proceeds to pay down the outstanding second lien term loan. We expect to see the benefits of lower interest payments associated with this pay down beginning in the fourth quarter.

調整後利息支出增加 110 萬美元，達到 430 萬美元，主要反映了我們因 2016 年 6 月股息資本重組交易而產生的增量定期貸款借款。在第三季度，我們完成了首次公開募股，並利用部分收益來償還未償還的第二留置權定期貸款。我們預計從第四季度開始就會看到與此支付相關的較低利息支付的好處。

For the three months ended September 30, 2016, we recorded an adjusted tax benefit of $0.4 million. Also, in Q3, I will note that we realized an income tax benefit of $1.7 million due to option exercise activity in the period, which impacted our provision and the optics around our tax rate. This relates to our early adoption of our Accounting Standards Update number 2016-09, Improvements to Employee Share-Based Accounting, which companies will need to adopt in 2017. Under this standard, the tax impact of employee option exercises is no longer recognized in paid-in capital on the balance sheet but is now recognized directly to the tax line on the income statement.

截至 2016 年 9 月 30 日的三個月，我們記錄的調整後稅收優惠為 40 萬美元。另外，在第三季度，我要指出的是，由於該期間的期權行使活動，我們實現了 170 萬美元的所得稅優惠，這影響了我們的撥備和稅率的看法。這與我們提前採用會計準則更新第2016-09 號《員工持股會計的改進》有關，公司需要在2017 年採用該會計準則。根據該準則，員工期權行使的稅務影響不再在已付股息中確認。 -資產負債表上的資本，但現在直接確認到損益表上的稅項。

Adjusted net income was $4.5 million, or $0.09 per share based on a pro forma diluted share count of 50.3 million. This compares to adjusted net income of $3.9 million, or $0.08 per share, based on a pro forma diluted share count of 50.3 million in the third quarter of 2015.

調整後淨利潤為 450 萬美元，即每股 0.09 美元（基於 5,030 萬股稀釋後備考股數）。相比之下，根據 2015 年第三季度 5030 萬股的預計稀釋後每股收益計算，調整後淨利潤為 390 萬美元，即每股 0.08 美元。

Capital expenditures during the quarter totaled $2.6 million, compared to $4.2 million in the third quarter of 2015, and were primarily related to investments in infrastructure, and the opening of 7 new e.l.f. stores during the quarter.

本季度的資本支出總計 260 萬美元，而 2015 年第三季度為 420 萬美元，主要與基礎設施投資以及開設 7 個新 e.l.f. 店有關。本季度的商店。

Year to date we have increased net sales by 22%, achieved gross margin expansion of nearly 500 basis points, and increased adjusted EBITDA by almost 11% as compared to the first nine months of 2015. As we have mentioned, our business is incredibly dynamic quarter to quarter, with variability in shipment timing for new distribution, shelf resets, and seasonal periods, as well as timing of merchandising programs and investment spending. As such we plan our business annually and will continue to guide on that basis. We remain enthusiastic about the year, which is reflected in our annual outlook.

與2015 年前9 個月相比，今年迄今為止，我們的淨銷售額增長了22%，毛利率增長了近500 個基點，調整後EBITDA 增長了近11%。正如我們所提到的，我們的業務充滿活力季度與季度之間，新分銷的發貨時間、貨架重置和季節性時期以及銷售計劃和投資支出的時間都有變化。因此，我們每年都會規劃我們的業務，並將繼續在此基礎上進行指導。我們對今年仍然充滿熱情，這反映在我們的年度展望中。

For the full year 2016 we expect net sales of $227 million, adjusted EBITDA of $50 million, adjusted net income of $15 million, adjusted pro forma diluted EPS of $0.30, on 51.4 million pro forma diluted shares.

對於2016 年全年，我們預計淨銷售額為2.27 億美元，調整後EBITDA 為5,000 萬美元，調整後淨利潤為1,500 萬美元，調整後預計攤薄後每股收益為0.30 美元，預計攤薄股數為5140 萬股。

In closing, I would like to thank our entire e.l.f. team for continuing to execute on our mission and growth strategy. As we look ahead, we remain excited about our business as we believe are in the early innings of growth. We have the ability to engage some of the best consumers in the category. They love our ability to deliver high quality cosmetics at an extraordinary value. We continue to see momentum in our direct channels and leading national retailers, as well as strong operational results. Of course the key to our success is our strength of our high performance team. This team is dedicated to the values to delight our consumer, do the right thing, work together to win, and execute with speed and quality. The combination is quite powerful and gives me confidence in our future.

最後，我要感謝我們整個 e.l.f.團隊繼續執行我們的使命和增長戰略。展望未來，我們仍然對我們的業務感到興奮，因為我們相信我們的業務正處於增長的早期階段。我們有能力吸引該類別中一些最好的消費者。他們喜歡我們以非凡的價值提供高品質化妝品的能力。我們繼續看到我們的直接渠道和領先的全國零售商的勢頭以及強勁的運營業績。當然，我們成功的關鍵是我們高績效團隊的力量。該團隊致力於取悅消費者、做正確的事、共同努力以取勝以及以速度和質量執行的價值觀。這種結合非常強大，讓我對我們的未來充滿信心。

I would now like to open the call up for your question. Camille, is there a question?

我現在想打開電話詢問你的問題。卡米爾，有問題嗎？

(Operator Instructions). Our first question comes from Bill Chappell with SunTrust.

（操作員說明）。我們的第一個問題來自 SunTrust 的 Bill Chappell。

Thanks, Good afternoon.

謝謝，下午好。

Good afternoon, Bill.

下午好，比爾。

I wanted to talk a little bit about the sales momentum as we go into the fourth quarter, was there any type of pull forward, or anything that altered that, or do you feel pretty good with your set up and where things go, that the momentum kind of continues, because certainly this was an out performance in 3Q. I want to understand if we are lapping anything, or we are missing anything as we go into 4Q?

我想談談進入第四季度時的銷售勢頭，是否有任何類型的推動，或任何改變這種情況的因素，或者您對自己的設置和進展情況感覺良好嗎？勢頭仍在繼續，因為這無疑是第三季度的表現。我想知道當我們進入第四季度時，我們是否正在研磨任何東西，或者我們是否遺漏了任何東西？

Bill, we feel really good about the results that we are able to drive in the third quarter, particularly against a tough comp last year. As mentioned in the opening remarks, we plan on an annual basis, given the movement that we can see in our business quarter to quarter, but as you can tell from our outlook, we remain enthusiastic about the business headed into Q4, and for the rest of the year.

比爾，我們對第三季度取得的成果感到非常滿意，特別是在去年艱難的競爭中。正如開場白中提到的，鑑於我們在業務中每個季度都可以看到的變化，我們以年度為基礎進行計劃，但正如您從我們的展望中可以看出的那樣，我們仍然對進入第四季度的業務充滿熱情，並且對於今年剩下的時間。

Great. And I know you are not going to talk specific about every retailer, but one recent add over the past two months has been Ulta.com, and didn't know if there was any change in your thought about not having any new retailers until at least early next year?

偉大的。我知道您不會具體談論每個零售商，但過去兩個月最近添加的一個是 Ulta.com，並且不知道您對不再擁有任何新零售商的想法是否有任何變化，直到至少明年初？

I can tell you we are really pleased with our start at Ulta.com. We have been in now a little bit over two months, and we are really pleased with what we are seeing. From a sales standpoint as well as from an overlap on core consumers. Our young, diverse make up enthusiasts match up well with their core target, and we love what we are seeing there, as well as our continued focus in the key retailers that we are in.

我可以告訴您，我們對 Ulta.com 的起步感到非常滿意。我們已經呆了兩個多月了，我們對所看到的感到非常滿意。從銷售的角度以及核心消費者的重疊來看。我們年輕、多元化的化妝品愛好者與他們的核心目標非常匹配，我們喜歡在那裡看到的東西，也喜歡我們對我們所在的主要零售商的持續關注。

We are not going to talk new retailers until we talk our forecast in the end of this year in 2017. We will be able to update you better then in terms of any additional retailers.

在我們討論 2017 年年底的預測之前，我們不會討論新的零售商。屆時我們將能夠更好地向您通報任何其他零售商的最新情況。

Sounds good. I'll turn it over.

聽起來不錯。我會把它翻過來。

Our next question comes from Steph Wissink with Piper Jaffray.

我們的下一個問題來自 Piper Jaffray 的 Steph Wissink。

Thanks. Good afternoon everyone. I guess a follow-up question on your comments around activation. Can you give us a little more insight to the Beauty Scape, how that ultimately performed for you? And then what were some of the key performance indicators whether it was in your DTC, or some of your retail level feedback on that activation plan? And then John one for you, just on the January-February that reports that rotation, are you seeing any changes here over the next couple of quarters with respect to expanded space at some of your core accounts? Thank you.

謝謝。大家下午好。我想對您關於激活的評論提出一個後續問題。您能否讓我們更深入地了解“美麗景觀”，以及它最終對您的影響如何？那麼，無論是在您的 DTC 中，還是在您對該激活計劃的零售層面反饋中，有哪些關鍵績效指標？然後約翰給你一個，就在 1 月至 2 月報告輪換情況時，你是否看到在接下來的幾個季度中，你的一些核心賬戶的空間擴大了有什麼變化？謝謝。

Sure. So on Beauty Scape, we are really excited about this program. As I mentioned, it is an activation where we brought 50 of our influencers together in San Francisco for the weekend. We are able to share some of our latest innovations, and really allow this community to bond, as well as immersed in the brand, including some of the things that are coming new. It was incredible what we saw come out of that event. We saw over 200 million outreach from a social media standpoint. We also saw the influencers that attended this event, were generating like 12.7 times more posts than our average influencers did. We also saw a major pick-up in traffic toward our site, as well as against some of our innovation. John mentioned one of those, in terms of our Beautifully Precise brushes, and the off take we have seen there. So this is a program that builds on our tradition of engaging authentically with our community, and we believe has legs to be able to continue to drive the brand.

當然。所以在 Beauty Scape 上，我們對這個項目感到非常興奮。正如我提到的，這是我們將 50 位有影響力的人士聚集在舊金山度過週末的活動。我們能夠分享我們的一些最新創新，並真正讓這個社區建立聯繫，並沉浸在品牌中，包括一些即將推出的新事物。我們從那次事件中看到的結果令人難以置信。從社交媒體的角度來看，我們看到了超過 2 億的外展活動。我們還看到參加本次活動的影響者發布的帖子比我們平均影響者的帖子多 12.7 倍。我們還看到我們網站的流量以及我們的一些創新的流量大幅增加。約翰提到了其中之一，即我們的精美精確畫筆，以及我們在那裡看到的脫片。因此，這個計劃建立在我們與社區真誠互動的傳統之上，我們相信它有能力繼續推動品牌發展。

Steph, to your second question, just given the productivity that we were able to drive with many of our retail partners, and obviously the strong innovation pipeline that we have, the case for incremental shelf space is fairly compelling. And I think as we have mentioned in the past, we are very aligned with many of our retail partners about that journey. Can't really comment into 2017, but we will get into that in greater detail when we talk fourth quarter, and provide the outlook then.

斯蒂芬，關於你的第二個問題，考慮到我們能夠與許多零售合作夥伴一起提高生產力，並且顯然我們擁有強大的創新渠道，增加貨架空間的理由相當引人注目。我認為正如我們過去提到的，我們與許多零售合作夥伴在這一旅程上的看法非常一致。無法真正評論 2017 年，但我們將在談論第四季度時更詳細地討論這一點，並提供展望。

Thanks you guys. Congratulations on a great quarter.

謝謝你們。祝賀您度過了一個美好的季度。

Thanks.

謝謝。

Our next question is from Jon Andersen with William Blair.

我們的下一個問題來自喬恩·安德森和威廉·布萊爾。

Good afternoon. Two quick ones from me. One is on the national retailer business, I think you indicated that about two-thirds of the year-to-date sales growth was through existing accounts. One-third through newer doors. Is that a similar profile we should be thinking about for the fourth quarter? And how much of a variation from year to year might you expect in that figure, and I am thinking about as you look over 2017 and 2018. And then the second is just on gross margin, very strong progress there obviously with 650 basis points of improvement. Can you talk a little more about what drove that? Some of the components within the Sweeten the Mix program, and your confidence in continuing to be able to support gross margin expansion going forward? Thank you.

下午好。我的兩個快的。一是關於全國零售商業務，我認為您表示今年迄今為止約三分之二的銷售增長是通過現有賬戶實現的。三分之一通過較新的門。我們第四季度應該考慮類似的情況嗎？您預計該數字每年會有多大變化，當您回顧 2017 年和 2018 年時，我正在思考。第二個是毛利率，顯然進展非常強勁，增長了 650 個基點改進。您能多談談是什麼推動了這一點嗎？ Sweeten the Mix 計劃中的一些組成部分，以及您對繼續支持未來毛利率擴張的信心嗎？謝謝。

As you mentioned about two-thirds of our growth year-to-date has really been driven by existing doors where we have been for some time. As we have talked about the components of that, it was really productivity as well as shell space expansion, that ends up being the underlying drivers within a particular account. To answer your question on the go forward, it was one of the best parts of our story, which is that we still have such untapped potential in terms of new doors, yet our story is incredibly balanced, in terms of how we have been able to grow within existing accounts, as well as how we have selectively added some new distribution over time. In any particular period, I think depending on our decision to partner with a new retailer account, or continue to penetrate within their chain, you may see the formula move in one side or another, but I think that you will continue to see that balance overall.

正如您提到的，今年迄今為止，我們的增長大約有三分之二實際上是由我們已經存在了一段時間的現有門推動的。正如我們已經討論過的組成部分，實際上是生產力和外殼空間擴展，最終成為特定帳戶內的潛在驅動因素。回答你關於未來的問題，這是我們故事中最好的部分之一，那就是我們在新門方面仍然有尚未開發的潛力，但就我們如何能夠做到這一點而言，我們的故事是令人難以置信的平衡在現有帳戶中增長，以及我們如何隨著時間的推移有選擇地添加一些新的發行版。在任何特定時期，我認為根據我們與新零售商帳戶合作的決定，或繼續滲透到他們的連鎖店中，您可能會看到公式向一側或另一側移動，但我認為您將繼續看到這種平衡全面的。

And then on gross margin, you touched on it, which was the Sweeten the Mix initiative, and really an innovation program that has been driving the significant expansion that you have seen in 2016. Really two components to that. One which is the new innovation coming online, and we continue to keep that pipeline very robust. As well as areas where we have been able to go in and deliver an incremental consumer benefit, but also expand margin at the same time. It has been a combination on the year-to-date period.

然後在毛利率方面，您提到了“Sweeten the Mix”計劃，這實際上是一個創新計劃，一直在推動您在 2016 年看到的顯著擴張。實際上有兩個組成部分。其中之一就是即將上線的新創新，我們將繼續保持該渠道的強勁發展。以及我們能夠進入並提供增量消費者利益的領域，同時也擴大利潤率。這是今年迄今為止的一個組合。

Thanks. Congratulations on a good quarter.

謝謝。祝賀您度過了一個美好的季度。

Thanks.

謝謝。

Our next question is from Oliver Chen with Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Oliver Chen。

Hi, thanks. Congratulations on great numbers. Regarding the two-thirds of existing door growth, were you able to give us color about the comp growth versus the shelf space growth, in terms of how that broke out? And as we think about for the long-term, how are you thinking about where your overall average unit retail can go, in terms of how you will balance gross margin opportunity versus marketing spend, in terms of the long-term view of building awareness for the brand, and also looking at those opportunities to continue to move the brand in interesting ways, as your AUR is pretty modest? Thank you.

你好謝謝。恭喜您獲得了巨大的數字。關於現有門的三分之二的增長，您能否向我們介紹一下比較增長與貨架空間增長的關係，以及它是如何爆發的？當我們從長遠考慮時，您如何考慮您的整體平均單位零售量可以走向何方，如何平衡毛利率機會與營銷支出，以及建立知名度的長期觀點為品牌，並尋找那些繼續以有趣的方式推動品牌發展的機會，因為您的AUR 相當適中？謝謝。

So Oliver on your first question we are not going to decompose comp versus shelf space expansion. What I can tell you is, it has been a combination historically. But we don't break that out going forward. On your other question around AUR, it has continued to be a journey for us, as we have introduced more price points to the overall mix, and continue to expand our assortment. We found that our consumer comes in at an accessible point in the range, and often travels with us throughout the price spectrum. One of our great products is a $30 item, which I think some periods ago, one might question whether e.l.f. was able to sell an item at that price point. But it is always attention for us, to your point on how we think about the balance of margin and pricing. For us it is about offering an extraordinary value every day to our enthusiast consumer, who really appreciates our value proposition, and very focused on making sure that we maintain that equation for her. We feel very good about how we have been driving that AUR progression over time, and obviously as we continue to innovate, there may be more opportunity there.

所以奧利弗，關於你的第一個問題，我們不會分解競爭與貨架空間擴張。我可以告訴你的是，從歷史上看，這是一種結合。但我們不會繼續解決這個問題。關於您關於 AUR 的其他問題，這對我們來說仍然是一個旅程，因為我們在整體組合中引入了更多價位，並繼續擴大我們的品種。我們發現我們的消費者在這個範圍內的一個可訪問點進入，並且經常在整個價格範圍內與我們一起旅行。我們最棒的產品之一是 30 美元的商品，我認為前一段時間，人們可能會質疑 e.l.f.能夠以該價格點出售商品。但我們始終關注您關於我們如何考慮利潤和定價平衡的觀點。對我們來說，這就是每天為我們的狂熱消費者提供非凡的價值，他們真正欣賞我們的價值主張，並且非常注重確保我們為她維持這個等式。我們對隨著時間的推移推動 AUR 進展感到非常滿意，顯然，隨著我們不斷創新，可能會有更多機會。

Okay. Then just a follow-up on corporate strategy. How do we think about how you evolve in a multi-channel way, and also using Amazon, and also building out your direct connection to the customer, across different kinds of channels, whether it be your own stores, national retailers, Amazon and others. What is your vision for how this unifies with respect to the brand and the consumer interface?

好的。然後只是公司戰略的後續行動。我們如何考慮如何以多渠道方式發展，以及如何使用亞馬遜，並通過不同類型的渠道建立與客戶的直接聯繫，無論是您自己的商店、全國零售商、亞馬遜還是其他渠道。您對品牌和消費者界面如何統一的願景是什麼？

Our strategy from a channel standpoint is, we are a true multi-channel brand, with strength in e-commerce, our own stores, and national retailers. In terms of going forward, the majority of the growth will be driven by national retailers, just given the white space that John talked about, both in existing doors as well as new doors. Having said that, our direct channel plays an incredibly important role, in terms of validating our innovation, engaging with our consumers, and really we believe has significant room to grow. In terms of e-tailers, we see e-tailers as being really important within that mix of our core customers. Given the cleanliness of our business model, we are ambivalent whether someone buys e.l.f. cosmetics at e.l.f. cosmetics.com, or whether they buy it at Wal-mart, or Target, or at Amazon. It is a brand where we have very good and consistent pricing across channels, and one where we can grow. Again it all comes back to us, to our core consumer the make up enthusiast, who seamlessly navigates between online and off line, and who wants to find a brand in the places that she is looking to shop, and that is where we will make it available.

從渠道的角度來看，我們的戰略是，我們是一個真正的多渠道品牌，在電子商務、自有商店和全國零售商方面擁有實力。就未來而言，考慮到約翰談到的現有門和新門的空白，大部分增長將由全國零售商推動。話雖如此，我們的直接渠道在驗證我們的創新、與消費者互動方面發揮著極其重要的作用，而且我們確實相信有巨大的增長空間。就電子零售商而言，我們認為電子零售商在我們的核心客戶組合中非常重要。鑑於我們商業模式的清潔性，我們對是否有人購買 e.l.f. 感到矛盾。 e.l.f. 的化妝品com，或者他們是在沃爾瑪、塔吉特還是亞馬遜購買。在這個品牌中，我們在各個渠道上擁有非常良好且一致的定價，並且是一個可以成長的品牌。這一切又回到了我們的身上，回到了我們的核心消費者——化妝愛好者身上，他們在線上和線下之間無縫導航，並且想要在她想要購物的地方找到一個品牌，而這就是我們將要製作的地方它可用。

Thank you. Best regards.

謝謝。此致。

Our next question is from Andrea Teixeira with JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

Hello everybody. Good afternoon there. I just want to follow-up, and my one question would be on SG&A. I understand obviously that all you discussed and the great hires you had, that you had to obviously make the Company ready for growth, but I was wondering more like long-term, that if you oversee probably a much lesser pressure there, and it bodes well with what Tarang has been saying about the improvement of Sweeten the Mix, and the improvement in average pricing, and the mix improvements there. Just help us going long-term, if you feel the additional SG&A expenses obviously X option compensation, would be more like moving out, going to the next few years? Thank you.

大家好。那裡下午好。我只想跟進，我的一個問題是關於銷售、管理和行政費用（SG&A）。我顯然理解你所討論的所有內容以及你擁有的優秀員工，你顯然必須讓公司為增長做好準備，但我想知道更多的是長期的，如果你監督那裡的壓力可能會小得多，這預示著塔朗一直在談論甜品組合的改進、平均定價的改進以及組合的改進。只是幫助我們長期發展，如果您覺得額外的 SG&A 費用顯然 X 期權補償，更像是搬出去，去未來幾年？謝謝。

Andrea what I tell you is what you have seen on our SG&A line is reflective of real investment in the brand and in the business. Historically across head count, infrastructure, and actual capability to drive and build our brand, we have been very thoughtful about making investments. And we will continue to make those investments. We have talked about a long-term growth algorithm of 20% and net sales growth, in terms of compound annual growth from 2016 to 2019, 100 basis points of margin expansion on the gross margin side per year, and a 20% compound annual growth from 2016 to 2019 on adjusted EBITDA. That is really reflective of our team's desire to continue to invest back in the business. Historically it has been a combination of head count, as well as core infrastructure and marketing. I think over time you may see more dollars deployed against a brand building opportunity, just given where our unaided awareness numbers sit. But I think that this is truly a story not only of growth, but investment against that growth.

安德里亞，我告訴你的是，你在我們的 SG&A 系列中看到的反映了對品牌和業務的真正投資。從歷史上看，在員工數量、基礎設施以及推動和打造我們品牌的實際能力方面，我們在進行投資時一直非常深思熟慮。我們將繼續進行這些投資。我們談到了20%和淨銷售額增長的長期增長算法，從2016年到2019年的複合年增長率來看，每年毛利率方面的利潤率擴張100個基點，年復合增長率為20% 2016 年至2019 年調整後EBITDA。這確實反映了我們團隊繼續投資於業務的願望。從歷史上看，它是員工數量、核心基礎設施和營銷的結合。我認為，隨著時間的推移，考慮到我們的獨立意識數字，您可能會看到更多的資金投入到品牌建設機會上。但我認為這確實不僅是增長的故事，也是針對增長的投資的故事。

That's helpful. Thank you.

這很有幫助。謝謝。

(Operator Instructions). Our next question comes from Mark Astrachan with Stifel.

（操作員說明）。我們的下一個問題來自 Stifel 的 Mark Astrachan。

Hi, I wanted to ask about the gap between tracked and untracked channel growth, and see if you could perhaps help us bridge that a bit, and broadly how do you think about that contribution to the top line?

您好，我想問一下跟踪渠道增長和非跟踪渠道增長之間的差距，看看您是否可以幫助我們彌補這一點，總體而言您如何看待這種對營收的貢獻？

You are talking about the different about what you see in Nielsen multi outlet versus our own growth rates?

您是在談論您在尼爾森多渠道看到的情況與我們自己的增長率有何不同？

Exactly.

確切地。

I don't know if we will provide that much commentary on that, other than what you can see on a track basis. What I can tell you if you look at the category overall at least in our Nielsen multi outlet data, the category in Q3 grew about 3% on color cosmetics, in the tracked basis on multi-outlet we grew about 28%. Again, the 28% is much better than the category is really due to us lapping our growth at CVS last year, where we entered all 6,900 doors. So we feel really good particularly in the ratio of our growth relative to the category. For us it goes back to the makeup enthusiasts, and her love of makeup, regardless of what is going on macroeconomically, or with the overall categories. It is pretty consistent and strong growth given the importance of this category to her, and how well this brand fits her need.

我不知道除了你可以在賽道上看到的內容之外，我們是否會對此提供那麼多評論。我可以告訴你的是，如果你至少在我們的尼爾森多渠道數據中查看該類別的整體情況，第三季度彩妝品類增長了約3%，在多渠道跟踪的基礎上，我們增長了約28% 。同樣，28% 比同類產品要好得多，這實際上是因為我們去年在 CVS 的增長，我們進入了全部 6,900 個門。因此，我們感覺非常好，特別是我們相對於該類別的增長比率。對我們來說，這可以追溯到化妝愛好者，以及她對化妝的熱愛，無論宏觀經濟或整體類別發生什麼變化。考慮到這個類別對她的重要性，以及這個品牌非常適合她的需求，這是相當一致和強勁的增長。

Maybe thinking about it in a different way, just as follow-up, is there anything in the other channels, the stuff that we don't see through that data that would have changed materially, one way or the other? In the third quarter, is there anything about the fourth quarter that would help the growth rate? I just want to ask a totally separate question, and make sure I get them both in there. Is there any benefit from currency translation to transaction to gross margin, given what the wan is doing in terms of where your manufacturing is?

也許以不同的方式思考這個問題，就像後續的那樣，其他渠道中是否有任何東西，我們通過數據看不到的東西，會以一種或另一種方式發生重大變化？第三季度、第四季度有什麼對增速有幫助的嗎？我只是想問一個完全獨立的問題，並確保我把它們都包含在內。考慮到廣域網在您的製造地點方面所做的事情，從貨幣換算到交易再到毛利率是否有任何好處？

I will take this first one, in terms of things that are not tracked in the Nielsen data, certainly our e-Commerce business and our stores wouldn't be a part of that. A there are a few of concept wouldn't, but I would say in the overall growth rate, I don't think you are missing much, other than looking at the track data.

我將採取第一個，就尼爾森數據中未跟踪的事物而言，我們的電子商務業務和我們的商店當然不會成為其中的一部分。有一些概念不會，但我想說的是，在總體增長率方面，除了查看跟踪數據之外，我認為您並沒有遺漏太多。

And Mark, you do see some modest benefit to our finished goods purchases, which are denominated in RMB from the currency movement, which has been advantageous over the course of the last couple of months. It is very little in terms of the overall impact, and the primary driver of gross margin again is innovation that Sweeten the Mix initiative that I mentioned.

馬克，您確實看到我們的製成品採購有一些適度的好處，這些製成品採購以人民幣計價，這在過去幾個月中一直是有利的。就總體影響而言，影響很小，而毛利率的主要驅動力又是我提到的“甜化混合”計劃的創新。

Perfect. Thank you.

完美的。謝謝。

Our next question comes from Bonnie Herzog with Wells Fargo.

我們的下一個問題來自富國銀行的邦妮·赫爾佐格。

Hi, everyone.

大家好。

Hi, Bonnie.

嗨，邦妮。

I had a couple of quick questions. I guess I was hoping you could provide a few more details on your new loyalty program. Maybe you can share some of that with us. Hoping you can drill down a little further on your brand penetration, and the targets you have made in the quarter in the US versus international?

我有幾個簡單的問題。我想我希望您能提供有關新忠誠度計劃的更多詳細信息。也許你可以與我們分享一些。希望您能進一步深入了解您的品牌滲透率，以及您本季度在美國與國際市場製定的目標嗎？

Sure. So I'll take the first one. On the Beauty Squad, this is a program that we are really excited about. It is our loyalty program, and the genesis of it is our consumers have been asking for it for quite some time, they are wanting a better way to continue to connect with this brand that she loves. What it is is a loyalty program that provides points for a dollar's purchase, as well as for referring friends, and as I mentioned just in the first six weeks we had over 80,000 of our e.l.f. consumers sign up for this program. And what makes the program really special, is it goes beyond just earning and redeeming points. Beauty Squad members are able to shop new items first, receive early access to our shopping events, you will see special gifts and incentives.

當然。所以我會選擇第一個。在《美麗小隊》中，這是一個讓我們非常興奮的節目。這是我們的忠誠度計劃，其起源是我們的消費者長期以來一直在要求它，他們想要一種更好的方式來繼續與她喜愛的這個品牌建立聯繫。它是一個忠誠度計劃，為一美元的購買以及推薦朋友提供積分，正如我在前六週提到的，我們有超過 80,000 個 e.l.f.。消費者報名參加該計劃。該計劃真正的特別之處在於它不僅僅是賺取和兌換積分。 Beauty Squad 會員可以搶先購買新品，搶先參與我們的購物活動，您將看到特別的禮物和獎勵。

And we have also found it incredibly helpful in our innovation process, our consumers have long been able to guide some of our choices in terms of innovations. And we find that our Beauty Squad members are some of our most engaged and active consumers, so the feedback that they are giving to us on our new items that we preview with them has been incredible. And then in some of the results. I think I am particularly encouraged that so far we are seeing as much as 70% of our repeat revenue coming from members of this program. It is an incredibly important group to us, and one we are seeing in multiple results, including both our overall traffic repeats, and what they represent.

我們還發現它對我們的創新過程非常有幫助，我們的消費者長期以來一直能夠指導我們在創新方面的一些選擇。我們發現我們的 Beauty Squad 成員是我們最積極、最活躍的消費者之一，因此他們向我們提供的關於我們與他們一起預覽的新產品的反饋令人難以置信。然後是一些結果。到目前為止，我們看到多達 70% 的重複收入來自該計劃的會員，這一點讓我感到特別鼓舞。這對我們來說是一個極其重要的群體，我們在多個結果中看到了這一群體，包括我們的整體流量重複次數及其代表的含義。

Bonnie on the brand penetration side, as we mentioned we saw expansion in both national retailer and the direct sides of our business, which was quite encouraging. We also did see expansion internationally. I think that the notable piece in the quarter that I mentioned in my comments, was the expansion to all Wal-Mart doors in Canada. From an international perspective again, it is relatively small in the overall context of our business today, but we do see tremendous opportunity, and we are obviously going to be prioritized, and strategically sequenced as we think about growing that side of the business over time.

邦妮在品牌滲透方面，正如我們提到的，我們看到全國零售商和我們業務的直接方面都在擴張，這是相當令人鼓舞的。我們也確實看到了國際擴張。我認為我在評論中提到的本季度值得注意的事情是沃爾瑪在加拿大所有門店的擴張。再次從國際角度來看，它在我們今天業務的整體背景下相對較小，但我們確實看到了巨大的機會，而且當我們考慮隨著時間的推移發展這方面的業務時，我們顯然將被優先考慮並進行戰略排序。

And then just on the brand penetration in the US, on a sequential basis did that accelerate? I know you were dealing with a tough comp too. I am just think trying to think through how that is ramping as you are building the business?

然後就美國的品牌滲透率而言，環比是否加速了？我知道你也面臨著艱難的競爭。我只是想嘗試思考一下，在你建立業務的過程中，這種情況是如何發展的？

It is difficult to speak to that question in this quarter, just given the nature of the comp this year. Against the shipments to 6,900 CVS stores in the third quarter of 2015. That obviously impacts the overall growth rate, but we continue to feel quite confident about where we are headed in the balance in all of our business, and also the growth algorithm that I referred to earlier.

考慮到今年比較的性質，在本季度很難回答這個問題。與 2015 年第三季度向 6,900 家 CVS 商店的發貨量相比。這顯然會影響整體增長率，但我們仍然對我們所有業務的平衡方向以及我的增長算法充滿信心。前面提到過。

Alright. Thank you.

好吧。謝謝。

That does conclude our question and answer session. I will turn the call back over to Tarang Amin for closing remarks.

我們的問答環節到此結束。我將把電話轉回給塔朗·阿明，讓其致閉幕詞。

Thanks again for joining us. We look forward to discussing our fourth quarter results with you in 2017 and seeing many of you at upcoming investor conferences, including the Morgan Stanley Consumer Conference on November 16th. Thank you.

再次感謝您加入我們。我們期待與您討論 2017 年第四季度的業績，並在即將舉行的投資者會議上見到您，包括 11 月 16 日舉行的摩根士丹利消費者會議。謝謝。

That does conclude our call for today. We appreciate your participation.

我們今天的呼籲到此結束。我們感謝您的參與。