elf Beauty Inc (ELF) 2016 Q4 法說會逐字稿

Greetings and welcome to the e.l.f Beauty, Inc. fourth-quarter FY16 earnings conference call.

歡迎參加 e.l.f Beauty, Inc. 2016 財年第四季度收益電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

It is my pleasure to introduce your host, Allison Malkin, of ICR. Thank you, Miss Malkin, you may begin.

我很高興向大家介紹 ICR 的主持人艾莉森·馬爾金 (Allison Malkin)。謝謝你，馬爾金小姐，你可以開始了。

Good afternoon, everyone. Thank you for joining us today to discuss e.l.f.'s fourth-quarter and full-year 2016 earnings results. A copy of today's Press Release is available in the Investor Relations section of www.elfcosmetics.com. A recording of the call will also be available for 90 days on www.elfcosmetics.com.

大家下午好。感謝您今天加入我們討論 e.l.f. 2016 年第四季度和全年盈利結果。今天新聞稿的副本可在 www.elfcosmetics.com 的投資者關係部分獲取。通話錄音也將在 www.elfcosmetics.com 上保留 90 天。

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 FY16 outlook, are subject to known and unknown risks and uncertainties, and therefore actual results may differ materially.

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 by such forward-looking statements are detailed in today's Press Release, and the Company's SEC filings. In addition, the Company's presentation today includes information presented on a non-GAAP basis. We refer you to today's press release for a reconciliation of the differences between the non-GAAP presentation, and the most directly comparable GAAP measures.

今天的新聞稿和公司向 SEC 提交的文件中詳細介紹了可能導致實際結果與此類前瞻性陳述明示或暗示的結果不同的重要因素。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。我們建議您參閱今天的新聞稿，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。

With us from Management today are Tarang Amin, Chairman and Chief Executive Officer; and John Bailey, President and Chief Financial Officer. For today's call, Tarang will begin with an overview of our results and as typical for us, John and Tarang will than alternate sharing the progress we made against our growth strategy and providing additional detail related to our financial performance and guidance. This will be followed by a Q&A session.

今天與我們一起出席的還有管理層的董事長兼首席執行官 Tarang Amin；以及總裁兼首席財務官約翰·貝利 (John Bailey)。在今天的電話會議中，塔朗將首先概述我們的業績，按照我們的慣例，約翰和塔朗將輪流分享我們在增長戰略方面取得的進展，並提供與我們的財務業績和指導相關的更多細節。隨後將進行問答環節。

It is now my pleasure to turn the call over to Tarang.

現在我很高興將電話轉給塔朗。

Thank you, Allison, and good afternoon, everyone. Our call today appropriately falls on International Women's Day, celebrating women and their achievements. This year's theme, to be bold for change, resonates strongly with us.

謝謝你，艾莉森，大家下午好。我們今天的呼籲恰逢國際婦女節，慶祝婦女及其成就。今年的主題是“大膽變革”，引起了我們的強烈共鳴。

At e.l.f. , our mission is to make luxurious beauty accessible for all women to play beautifully. I want to thank all of our teammates, the vast majority of whom are women, for their hard work and dedication to bring this bold mission to life.

在 e.l.f. ，我們的使命是讓奢華美麗觸手可及，讓所有女性都能玩出美麗。我要感謝我們所有的隊友，其中絕大多數是女性，感謝她們的辛勤工作和奉獻精神，使這一大膽的使命成為現實。

We are pleased with our finish to a terrific year of growth that included significant accomplishments towards our mission. The fourth quarter was highlighted by a 17% increase in revenue, a nearly 600 basis point expansion in gross margin, and adjusted earnings per share growth of 36% to $0.19 from $0.14 in the fourth-quarter of 2015. For the full-year, net sales grew 20%, gross margin expanded over 500 basis points and adjusted EPS climbed 33% to $0.36 from $0.27 in FY15.

我們對過去一年的出色增長感到高興，其中包括在實現我們的使命方面取得的重大成就。第四季度的亮點是收入增長 17%，毛利率增長近 600 個基點，調整後每股收益增長 36%，從 2015 年第四季度的 0.14 美元增至 0.19 美元。淨銷售額增長20%，毛利率增長超過500 個基點，調整後每股收益從2015 財年的0.27 美元攀升33% 至0.36 美元。

We continue to grow market share. According to IRI multi-outlet data, for the 52 weeks ending December 25, 2016, our dollar share of the US mass color cosmetics market increased from 2.7% at the end of 2015 to 3.4% at the end of 2016.

我們繼續擴大市場份額。根據IRI多渠道數據，截至2016年12月25日的52週，我們在美國大眾彩妝市場的美元份額從2015年底的2.7%增加到2016年底的3.4%。

We also made progress in our four growth strategies. Our first strategy is to build a great brand. e.l.f. is an authentic brand that young, diverse makeup enthusiasts love. Relative to the overall cosmetics category, we are twice as developed among millennials, over developed among Hispanics and have strong appeal with makeup enthusiasts, the consumers are driving the category.

我們的四項增長戰略也取得了進展。我們的首要戰略是打造一個偉大的品牌。 e.l.f.是一個深受年輕多元化化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，在西班牙裔中的發展程度超過了，並且對化妝愛好者有很強的吸引力，消費者正在推動該類別。

We know how to engage these consumers, and they are our best advocates. During Q4, we built on the success of our Beauty Scape influencer program. We hosted a special e.l.f holiday celebration in Los Angeles, with influencers who were selected based on their authentic ties to e.l.f. The event reached a combined audience of 76 million and helped us cross the 2 million follower mark on Instagram.

我們知道如何吸引這些消費者，他們是我們最好的倡導者。在第四季度，我們以 Beauty Scape 影響者計劃的成功為基礎。我們在洛杉磯舉辦了一場特別的 e.l.f 節日慶祝活動，根據與 e.l.f. 的真實聯繫選出了有影響力的人物。此次活動共吸引了 7600 萬觀眾，幫助我們在 Instagram 上突破了 200 萬粉絲大關。

Through these activations, we believe we can further build awareness and deepen engagement with our consumers. We also continued to build momentum behind our loyalty program, Beauty Squad. During the fourth quarter, we more than doubled enrollment and now have over 190,000 Beauty Squad members. On average, these consumers shop www.elfcosmetics.com 30% more often and purchase 50% more during each visit versus non-members.

通過這些活動，我們相信我們可以進一步提高消費者意識並加深與消費者的互動。我們還繼續為我們的忠誠度計劃 Beauty Squad 打造動力。第四季度，我們的註冊人數增加了一倍多，目前 Beauty Squad 會員人數已超過 190,000 名。平均而言，與非會員相比，這些消費者在 www.elfcosmetics.com 上購物的頻率要高出 30%，每次訪問的購買次數要高出 50%。

We're enthusiastic about the potential of Beauty Squad to build deeper relationship with our consumers. Stepping back, we have more than doubled unaided awareness of e.l.f from 6% a couple years ago to 13% at the end of 2016, reflecting the effectiveness of our engagement efforts and the significant opportunity that remains ahead of us. I'll now turn the call over to John to review progress against our innovation and brand penetration strategy.

我們對 Beauty Squad 與消費者建立更深層次關係的潛力充滿熱情。退一步來說，我們對e.l.f 的獨立認知度從幾年前的6% 增加了一倍多，到2016 年底達到13%，這反映了我們參與工作的有效性以及我們面前仍然存在的重大機遇。我現在將把電話轉給約翰，以審查我們的創新和品牌滲透戰略的進展情況。

Thanks, Tarang. Our second strategy is to lead Innovation. e.l.f.'s combination of cost, quality, and speed provides a key, competitive advantage and delights our makeup enthusiasts who seek the latest in beauty. We launched products in as few as 20 weeks and on average introduced something new every week.

謝謝，塔朗。我們的第二個戰略是引領創新。 e.l.f. 集成本、質量和速度於一身，提供了關鍵的競爭優勢，讓我們追求最新美容的化妝愛好者感到高興。我們在短短 20 週內推出了產品，平均每週都會推出新產品。

In 2016, we had over 90 product introductions across eyes, lips, face, tools, and skincare. Many of these items are first to mass or in other words, products that formerly could only be found in prestige outlets at much higher prices. We continue to demonstrate consumer preference over comparable prestige products, on many of our first to mass items.

2016 年，我們推出了 90 多個產品，涉及眼部、唇部、面部、工具和護膚品。其中許多商品首先進入大眾市場，或者換句話說，這些商品以前只能在高檔商店以高得多的價格找到。在我們的許多首次批量生產的產品上，我們繼續展示消費者對同類優質產品的偏好。

Our innovation program is supported by influencer collaborations, including our recent product launch with Wei Lee Huang, an influencer with more than 2 million followers. We believe our depth and breadth of high-quality innovation at an extraordinary value sets us apart from other brands. 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 e.l.f. stores.

我們的創新計劃得到了與影響者合作的支持，包括我們最近與擁有超過 200 萬粉絲的影響者 Wei Lee Huang 推出的產品。我們相信，高質量創新的深度和廣度以及非凡的價值使我們有別於其他品牌。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，在全國領先的零售商、電子商務和 e.l.f. 領域擁有強大實力。商店。

We are pleased with our combination of growth with existing customers as well as the opportunity to selectively increase the availability of our products in new accounts. While we continue to add new distribution, during 2016 approximately three-quarters of our growth in national retailers came from existing doors.

我們對與現有客戶的共同增長以及有選擇地增加新客戶中我們產品的可用性的機會感到高興。雖然我們不斷增加新的分銷渠道，但 2016 年，我們全國零售商增長的大約四分之三來自現有門店。

We are excited to announce another key highlight for our national retailer business. In Q4 we shipped pipeline to service a significant expansion of our presence at Target. Increasing our shelf space by more than 50%. While the process is setting shelves for the incremental space is not expected to be complete until the second quarter, we're pleased with the progress and its reflection of our attractive consumer profile and innovation pipeline.

我們很高興地宣布我們全國零售商業務的另一個重要亮點。在第四季度，我們運送了管道，為我們在 Target 的業務大幅擴張提供服務。我們的貨架空間增加了 50% 以上。雖然為增量空間設置貨架的過程預計要到第二季度才能完成，但我們對進展及其對我們有吸引力的消費者形象和創新渠道的反映感到滿意。

In 2016, according to IRI, e.l.f. was the number one unit share brand at Target and number four dollar share brand. e.l.f had a 14.4% unit share and 8.8% dollar share. Our international business also advanced in Q4 as we added 150 new Walmart locations in Mexico.

2016 年，根據 IRI 的數據，e.l.f.是塔吉特第一大單位份額品牌和第四大美元份額品牌。 e.l.f 擁有 14.4% 的單位份額和 8.8% 的美元份額。我們的國際業務在第四季度也取得了進展，我們在墨西哥新增了 150 個沃爾瑪門店。

Our direct business, which includes both www.elfcosmetics.com and e.l.f. stores continues to play a critically important role in driving consumer engagement and validating our innovation. E-commerce was supported during the quarter by the launch of new products, the growth of our Beauty Squad loyalty program and select seasonal promotions.

我們的直接業務包括 www.elfcosmetics.com 和 e.l.f.商店在推動消費者參與和驗證我們的創新方面繼續發揮著至關重要的作用。本季度電子商務得到了新產品的推出、我們的 Beauty Squad 忠誠度計劃的發展以及精選的季節性促銷活動的支持。

We opened 4 e.l.f. stores in the quarter two bring our total to 19 including the expansion of store portfolio to Los Angeles with locations at Glendale Galleria, Culver City, and Fashion Square. I will now turn it back to Tarang.

我們開了 4 e.l.f.第二季度，我們的門店總數達到 19 家，其中包括將門店組合擴展到洛杉磯，在格倫代爾商業街 (Glendale Galleria)、卡爾弗城 (Culver City) 和時尚廣場 (Fashion Square) 開設門店。現在我將把它轉回塔朗。

Thanks, John. Our fourth strategy is to drive world-class operations, which starts with world-class people. We are proud of the investments we have made and continue to make in the team and infrastructure to scale the business.

謝謝，約翰。我們的第四個戰略是推動世界一流的運營，這要從世界一流的人才開始。我們為擴大業務而在團隊和基礎設施方面所做的投資和繼續進行的投資感到自豪。

We recently updated our employee demographics, which I'm excited to share with you. Over 85% of our employees are women, or 75% are millennials and over 60% are diverse. In short, the vast majority of our employees are the same young, diverse makeup enthusiasts that we target. We believe this gives us a real edge.

我們最近更新了員工人口統計數據，我很高興與您分享。我們超過 85% 的員工是女性，75% 是千禧一代，超過 60% 是多元化的。簡而言之，我們的絕大多數員工都是我們所針對的年輕、多元化的化妝愛好者。我們相信這給了我們真正的優勢。

Our employees have a terrific combination of blue-chip CPG and beauty experience, with the ability to execute with speed and quality. Over the past 13 years we have honed in operations advantage to deliver an excellent combination of cost, quality, and speed. In Q4, key highlights include successfully shipping an elevated holiday program, pipeline needed to support our expansion at Target and fill rates above 98% across national retailers. In summary, we had a strong year, as we grew the business and advanced our growth strategy.

我們的員工擁有出色的 CPG 和美容經驗，能夠快速、高質量地執行任務。在過去 13 年裡，我們磨練了運營優勢，實現了成本、質量和速度的完美結合。第四季度的主要亮點包括成功推出高端假期計劃、支持我們在 Target 擴張所需的渠道以及全國零售商的填充率超過 98%。總而言之，隨著我們業務的發展和增長戰略的推進，我們度過了強勁的一年。

I'll now turned back to John to provide a more detailed update on our financial progress.

現在我將向約翰提供有關我們財務進展的更詳細的最新信息。

Thanks, Tarang. I'll begin by reviewing the details of our fourth-quarter and FY16 results and then Tarang will provide our outlook for the full year. For the fourth quarter, net sales increased 17% or $11 million to $76.4 million. Net sales included a slight pull forward of shipments that were expected to be shipped in the first quarter in 2017.

謝謝，塔朗。我將首先回顧我們第四季度和 2016 財年業績的詳細信息，然後 Tarang 將提供我們對全年的展望。第四季度淨銷售額增長 17%，即 1100 萬美元，達到 7640 萬美元。淨銷售額比預計 2017 年第一季度的出貨量略有提前。

Gross margin expanded from 54% to 59%, primarily driven by our innovation program and the Sweeten the Mix initiatives. On an adjusted basis, selling and administrative expenses as a percentage of net sales were 37% compared to 35% in the fourth-quarter of 2015. Reflecting public Company expenses and continued strategic investments in people, infrastructure, and brand building, including the expansion of our direct business.

毛利率從 54% 擴大到 59%，這主要是由我們的創新計劃和 Sweeten the Mix 計劃推動的。調整後的銷售和管理費用占淨銷售額的比例為 37%，而 2015 年第四季度為 35%。反映了上市公司的費用以及在人員、基礎設施和品牌建設方面的持續戰略投資，包括擴張我們的直接業務。

Adjusted EBITDA was $22.1 million, an increase of 26% from $17.6 million in the fourth-quarter of 2015. Adjusted net income was $9.4 million or $0.19 per share based on a fully diluted share count of 50.2 million. This compares to $6.9 million or $0.14 per share, in the fourth-quarter of 2015.

調整後 EBITDA 為 2,210 萬美元，比 2015 年第四季度的 1,760 萬美元增長 26%。調整後淨利潤為 940 萬美元，即每股 0.19 美元（基於完全稀釋後的 5,020 萬股股票計算）。相比之下，2015 年第四季度的營收為 690 萬美元，即每股 0.14 美元。

For the full-year 2016 net sales increased 20%, gross margin expanded from 52% to 58%. Adjusted EBITDA grew from $46 million to $54 million and adjusted net income grew 33%. Adjusted net income per diluted share rose to $0.36 for FY16 from $0.27 in FY15. Based on a pro forma diluted share count of 50.2 million.

2016年全年淨銷售額增長20%，毛利率從52%擴大至58%。調整後 EBITDA 從 4600 萬美元增長至 5400 萬美元，調整後淨利潤增長 33%。 2016 財年調整後每股攤薄淨利潤從 2015 財年的 0.27 美元增至 0.36 美元。基於預計稀釋後的 5020 萬股股票數量。

From a balance sheet perspective we ended the year with cash of $15.3 million. We finished with an inventory balance of $69.4 million which is above targeted levels as we proactively increased weeks of supply in our fastest moving items. We expect to return to targeted inventory levels as the year progresses.

從資產負債表的角度來看，我們年底的現金為 1530 萬美元。我們的庫存餘額最終達到 6,940 萬美元，高於目標水平，因為我們主動增加了移動速度最快的商品的供應週數。我們預計隨著時間的推移，庫存將恢復到目標水平。

In December, we also entered into a new debt facility that reduced pricing and is expected to result in significant annual cash interest savings, in addition to providing added flexibility. Capital expenditures totaled $3.7 million for the quarter and $9.2 million for the year, and were primarily related to investments in fixturing for national retailers, our new Ontario warehousing and logistics facility, IT infrastructure and the opening of 14 new e.l.f. stores during the year.

12 月，我們還簽訂了一項新的債務融資協議，該融資協議降低了定價，除了提供更大的靈活性外，預計還會節省大量的年度現金利息。本季度資本支出總計 370 萬美元，全年資本支出總計 920 萬美元，主要與全國零售商的固定設備、我們新的安大略倉儲和物流設施、IT 基礎設施以及開設 14 個新 e.l.f. 店的投資有關。年內的商店。

For FY17 we expect capital expenditures in the range of $6 million to $8 million, primarily related to fixturing for national retailers, the opening of e.l.f. stores, and technology investments.

對於 2017 財年，我們預計資本支出在 600 萬至 800 萬美元之間，主要與全國零售商的固定設備、e.l.f. 的開業有關。商店和技術投資。

Tarang will now provide details of our 2017 outlook.

Tarang 現在將提供我們 2017 年展望的詳細信息。

Thanks, John. Our team is focused on managing the business and delivering on our expectations over the course of the full year. Our business is dynamic and will fluctuate quarter to quarter due to various customer shipping requirements and seasonality. For example, our pipeline shipments to Target in Q4 2016, and significant pipeline in Q1 2016, will create a challenging comparison in Q1 2017.

謝謝，約翰。我們的團隊全年專注於管理業務並實現我們的期望。我們的業務是動態的，由於不同的客戶運輸要求和季節性，每個季度都會出現波動。例如，我們在 2016 年第四季度向 Target 的管道發貨，以及 2016 年第一季度的大量管道運輸，將在 2017 年第一季度進行具有挑戰性的比較。

For the full-year 2017, we expect net sales of $285 million to $295 million, representing year-over-year growth of 24% to 20%. Adjusted EBITDA of $61 million to $64 million, reflecting the full-year impact of public company expenses and continued investments in people, infrastructure and brand building. Adjusted net income of $21 million to $23 million, and adjusted pro forma diluted EPS of $0.40 to $0.43 on 53.1 million diluted shares.

對於 2017 年全年，我們預計淨銷售額為 2.85 億至 2.95 億美元，同比增長 24% 至 20%。調整後的 EBITDA 為 6100 萬美元至 6400 萬美元，反映了上市公司支出以及對人員、基礎設施和品牌建設的持續投資的全年影響。調整後淨利潤為 2100 萬美元至 2300 萬美元，調整後的預計稀釋每股收益為 0.40 美元至 0.43 美元（5310 萬股稀釋股票）。

In closing, we are proud of our performance during 2016. We're even more excited about 2017 and believe we are well-positioned to deliver on our objectives.

最後，我們對 2016 年的表現感到自豪。我們對 2017 年感到更加興奮，並相信我們有能力實現我們的目標。

I'd now like to ask the operator to open the call for your questions.

我現在想請接線員打開電話詢問您的問題。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Steph Wissink, Piper Jaffray.

斯蒂芬·維辛克，派珀·賈弗雷。

Thanks. Good afternoon, everyone, and congratulations on a strong finish. John, I have a question for you, just a clarification, and then a bigger picture question. But first and foremost on the pull forward, if you could help us with the order of magnitude of how should we think about the first quarter and just the balance between kind of Q4 and Q1?

謝謝。大家下午好，祝賀您取得圓滿成功。約翰，我有一個問題要問你，只是一個澄清，然後是一個更大的問題。但首先也是最重要的是，您是否可以幫助我們了解我們應該如何考慮第一季度以及第四季度和第一季度之間的平衡？

Yes, Steph, how are you? Just generally speaking as you guys know, very dynamic business, a lot that can move from quarter to quarter, as we describe the pipeline in Q4 it was a slight pull forward from Q1 of 2017. We don't get into specifics around pipeline numbers.

是的，斯蒂芬，你好嗎？一般來說，正如你們所知，業務非常活躍，很多業務可能會在每個季度發生變化，正如我們在第四季度描述的管道一樣，它比2017 年第一季度略有提前。我們不會詳細介紹管道數量。

The other thing that I would point you to is in Tarang's commentary he referenced some more material pipeline in Q1 of 2016 that we will be comping against in the first quarter of 2017. But in terms of what actually impacted Q4, it was fairly modest.

我想向您指出的另一件事是，在Tarang 的評論中，他提到了2016 年第一季度的一些更多材料管道，我們將在2017 年第一季度進行比較。但就實際影響第四季度的因素而言，影響相當小。

Okay. And then my question just with respect to you innovation you had some pretty fantastic numbers, 90 new products in 2016, I think your plans for 2016 are also quite robust. So help us just think about the catalog size, how you're thinking about retirement of SKUs that maybe are underperforming?

好的。然後我的問題是關於你們的創新，你們有一些非常驚人的數字，2016 年有 90 個新產品，我認為你們 2016 年的計劃也非常穩健。那麼請幫助我們考慮一下目錄規模，您如何考慮可能表現不佳的 SKU 的退役？

And then you also referenced I think 98% on your fill rates statistics, so how should we also think about the inventory complexity as your catalog gets larger and you bring more innovation? How do you balance that with some of the retirement of some underperforming SKUs on a relative basis? Thank you.

然後您還提到了您的填充率統計數據，我認為 98％，那麼隨著您的目錄變得更大並且帶來更多創新，我們還應該如何考慮庫存複雜性？您如何在相對基礎上平衡一些表現不佳的 SKU 的退役？謝謝。

Sure. It is something we are consistently taking a look at so just for context, we have about 900 SKUs on www.elfcosmetics.com, a subset of that about 450 to 650 SKUs in our own e.l.f. branded stores and about 150 SKUs in a 4-foot planogram, about 250 in an 8-foot set. So we're consistently leveraging our model to migrate the best of into a physical retail footprint. From an overall innovation perspective to your point we continue to have a pretty robust pipeline with a lot of new launches, but we're equally disciplined at retiring SKUs as well, so as you think about that 900 SKU assortment it may move up and down slightly, but we've kept that fairly contained over the years.

當然。我們一直在關注這一點，因此僅作為背景，我們在 www.elfcosmetics.com 上有大約 900 個 SKU，這是我們自己的 e.l.f. 中大約 450 到 650 個 SKU 的子集。品牌商店，4 英尺貨架圖中約 150 個 SKU，8 英尺貨架圖中約 250 個。因此，我們始終如一地利用我們的模型將最好的部分遷移到實體零售足跡中。從整體創新的角度來看，我們仍然擁有相當強大的渠道，推出了大量新產品，但我們在淘汰 SKU 方面也同樣嚴格，因此當您想到 900 個 SKU 品種時，它可能會上下移動略有一點，但多年來我們一直將其控制得相當有限。

Very helpful, thanks, guys.

非常有幫助，謝謝，伙計們。

Bill Chappell, SunTrust Robinson Humphrey.

比爾·查佩爾，SunTrust Robinson Humphrey。

Thanks, good afternoon.

謝謝，下午好。

Good afternoon.

下午好。

Just on the shelf space gains first with Target, that's obviously fantastic. Can you maybe talk on a competitive landscape, it looks like you been taking share or I guess some of that hard shelf space from Cover Girl and maybe to some extent some of the other larger brands. Do you sense that there is a change, especially with Coty now owning brands versus P&G where there is as a bigger opportunity to take shelf space, whereas is this a natural evolution of the brand at Target or at other stores?

僅在貨架空間上，塔吉特就獲得了第一，這顯然很棒。你能談談競爭格局嗎？看起來你一直在搶奪份額，或者我猜想封面女孩的一些硬貨架空間，也許在某種程度上是其他一些較大品牌的份額。您是否感覺到存在變化，特別是科蒂現在擁有自己的品牌，而寶潔則有更大的機會佔據貨架空間，而這是塔吉特或其他商店品牌的自然演變嗎？

Hi Bill, this is Tarang. What I would tell you, this is a continuation of what's made us successful. So if you take a look at why Target awarded e.l.f. significantly more space is really on the basis of three things.

嗨，比爾，我是塔朗。我想說的是，這是我們成功的延續。因此，如果您了解 Target 為何授予 e.l.f.顯著增加的空間實際上基於三件事。

First and foremost the consumer profile we bring into their stores in terms of young, diverse makeup enthusiasts. Second is that innovation pipeline that we talk about, a real strength of ours is the amount of innovation we can bring that frankly demands more space to be able to house that innovation that we have. And third is our ability to partner with them to continue to grow their category and bring incremental sales to their category and so I think those three things more than any type of competitive impact really are secret to our success and very much why we'll continue to pick up more space.

首先也是最重要的是，我們引入商店的消費者群體是年輕、多元化的化妝愛好者。其次是我們談論的創新渠道，我們真正的優勢是我們可以帶來的創新量，坦率地說，這需要更多的空間來容納我們擁有的創新。第三是我們與他們合作的能力，以繼續發展他們的類別並為他們的類別帶來增量銷售，因此我認為這三件事比任何類型的競爭影響都更重要，這確實是我們成功的秘訣，也是我們將繼續下去的原因以獲得更多空間。

Okay, great. And just as a follow-up, I know your 2016 guidance didn't assume any new retailers, is 2017 the same and with that in mind any update on getting into Ulta actual stores?

好的，太好了。作為後續行動，我知道你們 2016 年的指導沒有假設任何新零售商，2017 年是否相同，並且考慮到進入 Ulta 實際商店的任何更新？

So from a guidance perspective, Bill, no specific reference to new distribution in the numbers that we've provided. Obviously familiar with our policy, we will talk about distribution and new accounts as we secure that distribution.

因此，從指導的角度來看，比爾，我們提供的數字中沒有具體提及新的分佈。顯然熟悉我們的政策，我們將在確保分配時討論分配和新帳戶。

Tarang?

塔朗？

What I would tell you on Ulta is your call in the third quarter of 2016 we started selling www.ulta.com, we're really pleased with our results. Ulta has asked us not to share the specifics of that for competitive reasons, but I think what both of us like about our businesses together is we're going after that enthusiast consumer. Our practice is to talk about distribution after we have it so we don't comment on future opportunities.

我想在 Ulta 上告訴您的是您在 2016 年第三季度接到的電話，我們開始銷售 www.ulta.com，我們對我們的結果非常滿意。出於競爭原因，Ulta 要求我們不要透露具體細節，但我認為我們雙方都喜歡我們的業務，因為我們正在追求狂熱的消費者。我們的做法是在獲得分配後才討論分配，因此我們不會評論未來的機會。

Got it. Thanks so much.

知道了。非常感謝。

Jon Andersen, William Blair and Company.

喬恩·安德森、威廉·布萊爾及其公司。

Hi, good afternoon, congratulations. I just have one question. It's on the fill rates that you're running north of 98%, obviously that's a really good number and it gets to your point, Tarang, about world-class operations. Can you talk a little bit about how that high fill rate is translating to kind of in-stock levels in store? And I know this has been something you commented on in the past, that's always an opportunity to perhaps improve upon that through technology through people in the store to ensure that your in stock given the high velocity for the brand? Thank you.

你好，下午好，恭喜你。我只有一個問題。就填充率而言，您的填充率超過了 98%，顯然這是一個非常好的數字，它達到了您的觀點，塔朗，關於世界級的運營。您能否談談高填充率如何轉化為商店的庫存水平？我知道這是您過去評論過的事情，這始終是一個機會，也許可以通過商店中的人員通過技術來改進這一點，以確保您的庫存考慮到該品牌的高速度？謝謝。

Sure. I think one of the things we take great pride in is our operation's advantage overall and particularly kind of in our ability kind of fill our customers. A big part of that is, if you recall last year we moved warehouses from the East Coast to the West Coast, our Ontario warehouse and as part of that we really wanted to get kind of our fill rates even higher with our customers just so it could help in stocks.

當然。我認為我們引以自豪的事情之一是我們的整體運營優勢，特別是我們滿足客戶需求的能力。其中很大一部分是，如果你還記得去年我們將安大略省倉庫從東海岸搬到了西海岸，作為其中的一部分，我們真的希望我們的客戶能夠獲得更高的填充率，這樣就可以了。對股票有幫助。

In stocks are always going to be a challenge for us just given how fast we move relative to the rest of the category. So it's something that we are going to continue to work on but I do feel good about our position in terms of how we are filling our customers and then just as importantly how much we've penetrated the supply chains of our customers. Our teams did a terrific job particularly with our main customers really partnering with their operations people to really get after every opportunity we have both from a logistics standpoint as well as getting product to their shelves and I feel really great about that initiative as well.

考慮到我們相對於其他類別的移動速度有多快，股票對我們來說始終是一個挑戰。因此，這是我們將繼續努力的事情，但我確實對我們在如何滿足客戶需求方面的地位感到滿意，而且同樣重要的是，我們在多大程度上滲透了客戶的供應鏈。我們的團隊做得非常出色，特別是我們的主要客戶與他們的運營人員真正合作，從物流的角度以及將產品運送到他們的貨架上，真正抓住我們擁有的每一個機會，我對這一舉措也感到非常高興。

Thanks so much.

非常感謝。

Mark Astrachan, Stifel.

馬克·阿斯特拉坎，斯蒂菲爾。

Thanks related this is Claire Chamberlin and on for Mark Astrachan, thanks for taking my question. Just wanted to get a bit more color on what drove the increase in inventory both sequentially and year on year? And what gives you confidence that can come down through the course of 2017? Thanks.

謝謝，我是克萊爾·張伯倫（Claire Chamberlin），馬克·阿斯特拉坎（Mark Astrachan），感謝您提出我的問題。只是想更多地了解是什麼推動了庫存的環比和同比增長？是什麼讓您對 2017 年充滿信心？謝謝。

Sure. Hey, Claire. So just to put it in context, obviously Tarang just alluded to this but one of the biggest opportunities that we've seen in the business is actually just keeping retailers in stock. And if you think about where we came from in 2016 with respect to the warehouse move, we did want to make sure that we were in a position where we could fill our customers adequately, and to be completely candid we probably swung the pendulum a little bit too far. The good news is where we are carrying a little bit of extra inventory is in our fastest moving items, so very high level of confidence in our ability to move through that inventory well and we would expect it to normalize throughout the course of 2017.

當然。嘿，克萊爾。因此，就上下文而言，顯然塔朗只是提到了這一點，但我們在該行業看到的最大機會之一實際上就是讓零售商保持庫存。如果你想想 2016 年我們在倉庫搬遷方面的出發點，我們確實想確保我們能夠充分滿足客戶的需求，而且坦白地說，我們可能會稍微搖擺一下鐘擺有點太遠了。好消息是，我們在移動速度最快的商品中保留了一些額外庫存，因此我們對我們很好地處理這些庫存的能力充滿信心，我們預計它會在 2017 年期間恢復正常。

Thanks.

謝謝。

Oliver Chen, Cowen and Company.

奧利弗·陳，考恩公司。

Hey guys it's Courtney Wells in on for Oliver, of thanks for taking our question. We just had a question on the gross margin expansion that you saw during 4Q. Can you provide a bit more color on the drivers there? I know you mentioned Sweeten the Mix.

大家好，我是奧利弗的考特尼·威爾斯，感謝您提出我們的問題。我們剛剛對您在第四季度看到的毛利率擴張提出了疑問。您能為那裡的驅動程序提供更多顏色嗎？我知道你提到過“讓混合物變甜”。

And then also, regarding AUR opportunities for next year, are there certain categories where you believe you might have greater prospects for raising AUR? Thanks so much.

另外，關於明年的 AUR 機會，您認為在某些類別中提高 AUR 的前景可能更大嗎？非常感謝。

Hi Courtney I'll take the first, Tarang you can take the second. Generally speaking, obviously very pleased with the performance or expansion of our gross margin quarter over quarter, and I think it's been very consistent in that a lot of the drivers underlying that gross margin expansion really do come back to our broader innovation program. So we talk a little bit about Sweeten the Mix which is really a combination of both introduction of novel items at a margin profile that are accretive to that of the overall Company, as well as opportunities to look out across the existing range and introduce new items with consumer benefits that are incremental, and also deliver an incremental margin opportunity over time. So that has been and will continue to be, as we look forward into 2017, the lion share of that gross margin expansion.

嗨，考特尼，我會選擇第一個，塔朗，你可以選擇第二個。一般來說，顯然對我們毛利率逐季度的表現或擴張非常滿意，而且我認為這是非常一致的，因為毛利率擴張的許多驅動因素確實回到了我們更廣泛的創新計劃。因此，我們談論一下“甜化混合”，這實際上是結合了以利潤為基礎推出新產品（增加整個公司的利潤），以及尋找現有產品系列和推出新產品的機會。為消費者帶來增量利益，並隨著時間的推移提供增量利潤機會。因此，展望 2017 年，這一直是並將繼續成為毛利率擴張的最大份額。

And then to your question on average unit retail, we don't look at AUR kind of by category, we have specific targets that way, the way we driven AUR is really through our innovation. In particular when you take a look at our first to mass innovation one of the things we take great pride in is our ability to introduce innovation that the consumer previously could only really find in prestige. And our ability to introduce high-quality innovation at an extraordinary value, but often innovation that has preference relative to those prestige items. That really has been the way we've being able to drive AUR over time is through our innovation program and specifically our first to mass items.

然後，對於你關於平均零售量的問題，我們不會按類別來看待 AUR，我們有具體的目標，我們推動 AUR 的方式實際上是通過我們的創新。特別是當你看到我們的第一個大規模創新時，我們感到非常自豪的一件事是我們有能力引入消費者以前只能在聲望中才能真正找到的創新。我們有能力以非凡的價值引入高質量的創新，但通常是相對於那些聲望項目具有優先權的創新。這確實是我們能夠隨著時間的推移推動 AUR 的方式，那就是通過我們的創新計劃，特別是我們的第一個批量產品。

Bonnie Herzog, Wells Fargo.

邦妮·赫爾佐格，富國銀行。

Good afternoon.

下午好。

Hey, Bonnie.

嘿，邦妮。

Hi. I guess I'd be curious to hear from you guys what you think the impact could be on your business and the category in general from the pricing talk coming out of Walmart and Target as well as the broad commentary we're hearing from retailers about inventory destocking?

你好。我想我很想听聽你們的看法，從沃爾瑪和塔吉特的定價討論以及我們從零售商那裡聽到的廣泛評論中，你們認為這可能會對你們的業務和整個類別產生什麼影響庫存去庫存？

So you know what I would tell you is, having worked with both retailers over 25 years you see different kind of cycles that they go through, both in terms of their growth, inventories et cetera. For us, I would say a couple of things actually relating to both retailers, beauty is a bright spot, relative bright spot within their overall box in terms of its role and how it does across the chain. And then within that we've being able to sustain strong growth regardless of the macro environment.

所以你知道我要告訴你的是，與兩家零售商合作超過 25 年，你會看到他們經歷的不同類型的周期，無論是在增長、庫存等方面。對於我們來說，我想說一些與兩家零售商實際相關的事情，美容是一個亮點，就其角色及其在整個供應鏈中的表現而言，美容是他們整個盒子中的相對亮點。無論宏觀環境如何，我們都能夠維持強勁增長。

I just think back a few years ago when Target had their credit card issues or Walmart had certain traffic problems, we were able to maintain growth rates well above where the category was going mainly because of the unique proposition we bring to them, and kind of our position as we're continuing to grow. I would tell you that we're quite bullish on the business as you can tell by our guidance on our sales growth and quite consistent to kind of our 13 year history where we've been able to consistently grow regardless of what's going on around us.

我只是回想起幾年前，當塔吉特公司出現信用卡問題或沃爾瑪出現某些流量問題時，我們能夠將增長率保持在遠高於該類別的水平，主要是因為我們為他們提供了獨特的主張，並且有點隨著我們不斷發展，我們的地位。我想告訴你，我們對這項業務非常看好，你可以從我們對銷售增長的指導中看出這一點，這與我們 13 年的歷史非常一致，無論我們周圍發生什麼，我們都能夠持續增長。

Do you think in any way it gives you more of an advantage relative to your competition, given some of the issues these retailers are facing? Just trying to think through given your, what you provide an offer for the customer relative to others? Advantage, you know?

考慮到這些零售商面臨的一些問題，您認為這是否會給您帶來相對於競爭對手更多的優勢？只是想仔細考慮一下，相對於其他人，您為客戶提供的報價是什麼？優勢你知道嗎？

We certainly believe we are at an advantage. If you take a look at us, we look at opportunities when there are challenges to be able to grow share and that's exactly what we've being able to do, you take a look at our share growth last year throughout the entire year. We're quite confident mainly because of the uniqueness of our proposition and we're offering something that many of the other players aren't able to in terms of our consumer's innovation and ability to drive incremental growth to their category.

我們當然相信我們處於優勢。如果你看看我們，我們會在面臨挑戰時尋找機會來增加份額，而這正是我們能夠做的，你看看我們去年全年的份額增長情況。我們非常有信心，主要是因為我們的主張的獨特性，而且我們提供的東西是許多其他參與者無法提供的，因為我們的消費者的創新和推動其類別增量增長的能力。

Okay. I appreciate that. Thank you.

好的。我很感激。謝謝。

Thanks.

謝謝。

Thanks.

謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Andrea Teixiera, JPMorgan.

安德里亞·特謝拉，摩根大通。

Hi, good afternoon, congrats on the results. Just following up a little bit on the competitive environment it seems like what we saw in the Skinner data that actually promotions came down so was curious to see how you see the environment or are those initiatives just within mix pretty much what is driving that? So on a SKU, SKU basis should we say the promotional environment has actually improved vis-a-vis what we saw in the past couple of quarters?

大家好，下午好，恭喜結果。只是對競爭環境進行了一些跟踪，我們在斯金納數據中看到的情況似乎是促銷活動實際上下降了，所以很好奇您如何看待環境，或者這些舉措是否只是混合在一起的推動因素？那麼，就 SKU、SKU 而言，我們是否應該說促銷環境相對於過去幾個季度的情況實際上有所改善？

So I guess, Andrea I'm not sure, at least for us, we're not very promotional, we're not -- a lot of players in the beauty space are high, low, price their products higher and then use a lot of promotion to bring the prices down. Our approach is extraordinary value every single day and so I think that's been fairly consistent, and then even on our e-commerce business you'd see we're much less promotional in 2016 than we were in 2015. So we feel good about our overall value equation and how we go to market. I can't speak as much to the rest of the category and their approach just given how different we are.

所以我想，安德里亞，我不確定，至少對我們來說，我們不是很促銷，我們不是——美容領域的很多玩家要么高，要么低，他們的產品定價更高，然後使用大量的促銷活動來降低價格。我們的方法每天都具有非凡的價值，所以我認為這是相當一致的，即使在我們的電子商務業務中，你也會看到我們2016 年的促銷活動比2015 年要少得多。所以我們對我們的總體價值方程以及我們如何進入市場。考慮到我們之間的差異，我無法對這一類別的其他成員以及他們的方法進行過多的討論。

No I understand just on the trade discount sometimes you see like when you get rebates on like say CVS or some of these just to encourage people to try the product. There are some situations where I saw some promotions at CVS, so it's not like it's something that you feel where you are in the shelf space you are pretty much visible at this point and you don't need and you don't see much of an activity either from your competitors like NYX or the other guys.

不，我理解，有時您會看到商業折扣，例如 CVS 或其中一些折扣，只是為了鼓勵人們嘗試該產品。在某些情況下，我在 CVS 看到了一些促銷活動，所以這並不是你覺得自己在貨架空間中的東西，此時你幾乎是可見的，你不需要，也看不到太多東西。來自您的競爭對手（例如NYX）或其他人的活動。

So should I assume that this is pretty much the way you should be? And moving forward we should see more of a gain and I want to reconcile one of the comments you are saying that there is no gain, you were just referring to the gains that you had in the past at Target, right, in the beginning of your remarks? That you are not counting on any gains on shelf space for this year, correct?

那麼我應該假設這就是你應該做的事情嗎？展望未來，我們應該會看到更多的收益，我想調和你所說的沒有收益的評論之一，你只是指你過去在塔吉特公司獲得的收益，對吧，在年初你的言論？您不指望今年的貨架空間會有所增加，對嗎？

Yes, so a couple of different things in there, Andrea, so I will try to take them one at a time. I think generally speaking to Tarang's point, from a relative perspective our level of sort of true promotional activity is a shadow compared to many of the competitors that we play against. And obviously given the tremendous everyday accessibility of our brand, we're quite insulated from what others may be doing in terms of promotional cadence.

是的，裡面有幾件不同的東西，安德里亞，所以我會嘗試一次拿一件。我認為一般來說，就塔朗的觀點而言，從相對的角度來看，與我們對抗的許多競爭對手相比，我們真正的促銷活動水平是一個影子。顯然，考慮到我們品牌的日常便利性，我們在促銷節奏方面與其他人可能做的事情完全隔離。

And then on the second one, you know what I would tell you is back to our core business model, it's so different than from the rest of the category that we're not really worried about that. If I think about Target in particular and kind of the Target space, I go back to kind of what, how they were awarded that, it didn't have anything to do with any type of promotional support or cadence, it comes back to our consumer innovation, our ability to partner with them to grow the category and we're really seeing that as a big driver this year.

然後在第二個方面，你知道我要告訴你的是我們的核心業務模式，它與該類別的其他業務非常不同，因此我們並不真正擔心這一點。如果我特別考慮塔吉特以及塔吉特空間的類型，我會回到他們是如何獲得這一獎項的，這與任何類型的促銷支持或節奏沒有任何關係，這又回到了我們的目標消費者創新，我們與他們合作發展該類別的能力，我們確實將其視為今年的一大推動力。

And just as a follow-up you did not see an increase throughout 2016 of shelf space, correct? In Target?

作為後續行動，您沒有看到 2016 年貨架空間有所增加，對嗎？在目標？

So what we've observed is Target tends to be on every other year cadence in terms of large space gains. So the preponderance of our growth within that account in 2016 was largely driven through our innovation program and our ability to drive gains out of the same space that we have. Very different story in 2017 as we look forward, the highlight that we mentioned around our significant shelf space expansion in that account of greater than 50%.

因此，我們觀察到塔吉特在空間收益方面往往每隔一年就會增加一次。因此，2016 年我們在該賬戶中的增長優勢很大程度上是通過我們的創新計劃以及我們從現有空間中獲得收益的能力推動的。展望 2017 年，情況將截然不同，我們提到的亮點是我們的貨架空間顯著擴張，佔該比例超過 50%。

Greater than 15%? 1 5.

大於15%？ 1 5.

5 0.

5 0。

Oh 5 0, and that 50% for 2017, that's included in your guidance -- because that was announced that you just announced today or is that in addition to what you just said in terms of guidance here?

哦 5 0，2017 年的 50%，這包含在您的指導中 - 因為這是您今天剛剛宣布的，還是除了您剛才所說的指導之外？

Our guidance reflects our announcement of that shelf space increase, that's correct.

我們的指導反映了我們宣布的貨架空間增加，這是正確的。

Okay and that is started in February, started now or started the beginning of the year, sorry to be specific.

好的，這是從二月份開始的，現在開始的，或者是年初開始的，抱歉具體說一下。

We're currently working through the setting of the shelves at moment as you may have heard in the preamble, the setting of those shelves will likely take through the second quarter.

我們目前正在研究貨架的設置，正如您在序言中所聽到的那樣，這些貨架的設置可能會持續到第二季度。

Oh the second quarter, sorry. I didn't understand that. Perfect. Thank you so much again. Congrats.

噢，第二季，抱歉。我不明白。完美的。再次感謝你。恭喜。

Thanks.

謝謝。

Shannon Coyne, BMO Capital Markets.

Shannon Coyne，BMO 資本市場。

Hi, everyone. Congratulations on a great quarter.

大家好。祝賀您度過了一個美好的季度。

Thank you.

謝謝。

Thanks for taking my question. Just quickly, the Beauty Squad is growing very quickly, I was just wondering if you could tell us how many of those new sign-ups were new customers versus existing customers? So in other words, do you think you're reaching a new customer to that program yet, or is it still just signing up existing customers?

感謝您提出我的問題。很快，美容小隊的發展速度非常快，我只是想知道您能否告訴我們，新註冊的用戶中有多少是新客戶，而現有客戶有多少？換句話說，您認為該計劃是否已經吸引了新客戶，或者仍然只是與現有客戶簽約？

We haven't disclosed what level are new customers versus existing, what I will tell you by nature is that our loyalty program, so if I think about the customers we have in there, we're really pleased by the profile of those customers in terms of shopping more often on www.elfcosmetics.com and shopping more every time they are on the site.

我們還沒有透露新客戶與現有客戶的級別，我本質上會告訴您的是我們的忠誠度計劃，所以如果我考慮一下我們在那裡的客戶，我們對這些客戶的概況感到非常滿意更頻繁地在www.elfcosmetics.com 上購物，並且每次訪問該網站時都會購物更多。

And so I think we're particularly pleased by just how many people we were able to enroll kind of in that quarter, now over 190,000 and so beyond the numbers I would say their level of engagement in the brand is quite high including in terms of being able to comment on our innovation and overall brand.

因此，我認為我們對在該季度能夠註冊的人數感到特別高興，現在已經超過 190,000 人，因此，除了這些數字之外，我想說他們對品牌的參與度相當高，包括在以下方面：能夠對我們的創新和整體品牌發表評論。

And Shannon, while we don't get into specifics, it is a combination of the two.

香農，雖然我們沒有詳細說明，但它是兩者的結合。

And then secondly just wondering about gross margin for next year, the fourth quarter is a little bit ahead as what we were looking for and just wondering about, I know you said you have a lot of innovation next year, how comfortable you are expanding gross margins again, I guess to what extent in 2017? And is it mainly through more innovation or other factors?

其次，我想知道明年的毛利率，第四季度比我們所期待的要提前一些，只是想知道，我知道你說明年會有很多創新，你對擴大毛利率有多舒服又是利潤率，我猜2017年會達到什麼程度？主要是通過更多的創新還是其他因素？

I'd refer you back to our algorithm from 2016 to 2019 of 100 basis points of gross margin expansion or more. And as I said earlier, I think that really is going to be largely driven through our innovation program.

我建議您回顧一下我們的算法，從 2016 年到 2019 年，毛利率增長了 100 個基點或更多。正如我之前所說，我認為這將在很大程度上通過我們的創新計劃來推動。

Okay. Thanks, guys.

好的。多謝你們。

Thanks.

謝謝。

Jon Andersen, William Blair & Company.

喬恩·安德森，威廉·布萊爾公司。

Thanks for taking the follow-up. So you called out Target and we've seen the space increases in some of the stores we visited. Are you expecting other space gains with some of your other large existing national retail accounts? And how does, if so do those retailers handle it differently i.e. to the rate that happens in a more phased-based fashion throughout the year? Thanks. Any color you can provide.

感謝您的關注。所以你打電話給塔吉特，我們發現我們參觀的一些商店的空間有所增加。您是否期望其他一些現有的大型全國零售客戶能夠獲得其他空間？如果是的話，這些零售商如何以不同的方式處理它，即全年以更加分階段的方式發生的比率？謝謝。您可以提供任何顏色。

So as we said, we typically don't talk about new distribution until after we have distribution. But to your broader question of how do different retailers handle space, John mentioned kind of Target tends to do a big reset every other year.

正如我們所說，我們通常在發布之前不會談論新的發布。但對於不同零售商如何處理空間這一更廣泛的問題，約翰提到塔吉特傾向於每隔一年進行一次重大重置。

Our experience with Walmart is it has been more continuous. So if you look at the course of 2016 we picked up space as the year progressed, based on every time they seem to touch a store e.l.f. was one of the beneficiaries given what we deliver to them in their category. So it is vary retailer to retailer in terms of are they doing a big reset or are they touching the store. I think the one constant is our proposition is pretty compelling in either of those scenarios.

我們在沃爾瑪的經驗是它更加持續。因此，如果你看看 2016 年的進程，我們就會隨著時間的推移而獲得空間，基於他們似乎每次接觸商店 e.l.f.。是我們在他們的類別中向他們提供的服務的受益者之一。因此，零售商之間的情況各不相同，他們是否會進行重大重置，或者是否會接觸商店。我認為唯一不變的是我們的主張在這兩種情況下都非常引人注目。

Makes sense. Thank you.

說得通。謝謝。

Thank you. There are no further questions at this time. I would to turn the call back over to Mr. Tarang Amin for closing remarks.

謝謝。目前沒有其他問題。我將把電話轉回給塔朗·阿明先生做總結髮言。

Thanks. Thanks again everyone for joining us. We look forward to discussing our first-quarter results in May. Thanks, everyone.

謝謝。再次感謝大家加入我們。我們期待在五月份討論我們的第一季度業績。感謝大家。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您度過美好的一天。