elf Beauty Inc (ELF) 2018 Q1 法說會逐字稿

Greetings, and welcome to the e.l.f. Beauty, Inc. First Quarter 2018 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Allison Malkin with ICR. Please proceed.

問候，歡迎來到 e.l.f.美容公司2018 年第一季度收益電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給主持人 ICR 的艾莉森·馬爾金 (Allison Malkin)。請繼續。

Good afternoon, everyone. Thank you for joining us today to discuss e.l.f. Beauty's first quarter 2018 earnings results. A copy of today's press release is available in the Investor Relations section of elfcosmetics.com. A recording of the call will also be available for 90 days on elfcosmetics.com.

大家下午好。感謝您今天加入我們討論 e.l.f.美妝2018年第一季度財報。今天新聞稿的副本可在 elfcosmetics.com 的投資者關係部分獲取。通話錄音也將在 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 fiscal year 2018 outlook, are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially. 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.

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 2018 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。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。

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 these non-GAAP presentations and the most directly comparable GAAP measures. Certain brand equity measures cited in this presentation are based on third-party studies.

此外，該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，以了解這些非公認會計準則演示文稿與最直接可比的公認會計準則衡量指標之間的差異。本演示文稿中引用的某些品牌資產衡量標準基於第三方研究。

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 then alternate sharing the progress we made against our growth strategy and providing additional details 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，然後按照我們的慣例，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詳細信息。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。

Thanks, Allison, and good afternoon, everyone. We're pleased to report first quarter 2018 results with net sales increasing 9% and adjusted diluted earnings per share of $0.11. We took market share in tracked channels from 4.4% in Q1 of 2017 to 4.6% in the first quarter of 2018. We're also pleased with our progress in nontracked channels, including both our direct business as well as Ulta Beauty. Most importantly, our results demonstrate the successful execution of our growth strategy.

謝謝艾莉森，大家下午好。我們很高興地報告 2018 年第一季度業績，淨銷售額增長 9%，調整後稀釋每股收益為 0.11 美元。我們將跟踪渠道的市場份額從 2017 年第一季度的 4.4% 提高到 2018 年第一季度的 4.6%。我們也對非追踪渠道的進展感到滿意，包括我們的直接業務和 Ulta Beauty。最重要的是，我們的業績證明了我們增長戰略的成功執行。

Our first strategy is to build a great brand. e.l.f. is a brand that young, diverse beauty enthusiasts love. Perhaps one of the best measures of our brand's strength is how we've been able to grow our value ratings. Across each of the eyes, lips and face category, e.l.f. has the highest value rating amongst any brand. We've been able to achieve this while introducing higher price points, increasing average unit retails over the past 4 years from $1.98 to $3.47. I've been in the consumer sector for over 25 years and have had the privilege of leading a number of iconic brands. I've never seen a brand increase average unit retail prices by 75% and also grow value ratings to the highest in the category. This speaks to our pricing power and the strength of our brand.

我們的首要戰略是打造一個偉大的品牌。e.l.f.是年輕、多元化的美容愛好者喜愛的品牌。也許衡量我們品牌實力的最佳衡量標準之一就是我們如何提高我們的價值評級。在每個眼睛、嘴唇和臉部類別中，e.l.f.在所有品牌中具有最高的價值評級。我們在實現這一目標的同時引入了更高的價格點，在過去 4 年裡將平均單位零售價從 1.98 美元提高到 3.47 美元。我在消費行業工作了 25 年多，並有幸領導過許多標誌性品牌。我從未見過哪個品牌將平均單位零售價提高了 75%，並且將價值評級提高到了該類別中的最高水平。這說明了我們的定價能力和品牌實力。

In the first quarter of 2018, brand highlights include our New Orleans Beautyscape event that reached over 140 million, our Beauty Squad loyalty program that grew to over 900,000 members and several of our most successful beauty influencer collaborations. Our Heart Defensor highlighters sold out in stores in less than 2 weeks, and our Weylie lash kit is a top 5 e.l.f. item at Ulta Beauty. We also received the Glamour best of beauty award for our magnetic mask and the Cosmopolitan award for our silicone sponge duo. We are pleased with both the efficiency and effectiveness of our engagement efforts in building a brand that consumers love.

2018 年第一季度，品牌亮點包括參與人數超過 1.4 億的新奧爾良 Beautyscape 活動、擁有超過 900,000 名會員的 Beauty Squad 忠誠度計劃以及與一些最成功的美容影響者的合作。我們的 Heart Defensor 熒光筆在不到 2 週的時間裡就在商店售罄，而我們的 Weylie 睫毛套裝是 e.l.f. 前 5 名。Ulta Beauty 的商品。我們的磁性面膜還榮獲魅力最佳美容獎，矽膠海綿組合榮獲大都會獎。我們對我們在打造消費者喜愛的品牌方面所做的努力的效率和效果感到滿意。

I'll now turn it over to John to discuss progress on innovation and brand penetration.

現在我將把它交給約翰討論創新和品牌滲透方面的進展。

Thanks, Tarang. Our second strategy is to lead innovation. We believe our depth and breadth of high-quality innovation at an extraordinary value sets us apart from other brands. Additionally, our innovation approach has been the primary driver of the expansion of gross margins, which have increased over 1,400 basis points in the past 4 years.

謝謝，塔朗。我們的第二個戰略是引領創新。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。此外，我們的創新方法一直是毛利率擴大的主要驅動力，在過去 4 年中毛利率增加了 1,400 個基點。

In the first quarter, we launched 31 new items, including 12 products that were first to mass. A major area of focus continues to be skin care with the launch of oil control and pore-refining products. We continue to innovate across price points, launching 5 items at $2 or less, including our top-selling Line & Define Eye Tape, a first-to-mass launch at $2.

一季度，我們推出了31個新品，其中12個產品率先量產。隨著控油和毛孔細緻產品的推出，皮膚護理仍然是重點關注領域。我們繼續在各個價位上進行創新，以 2 美元或以下的價格推出 5 款產品，其中包括我們最暢銷的 Line & Define Eye Tape（首次批量推出，售價為 2 美元）。

We also improved our speed to market, which continues to be amongst the fastest of all beauty brands. The average speed from initial idea to selling online in Q1 was 20 weeks, with the fastest launch being 13 weeks. We believe our ability to respond quickly to trends and consumer feedback through our direct channels provides us with a significant advantage.

我們還提高了上市速度，這仍然是所有美容品牌中最快的。第一季度從最初的想法到在線銷售的平均速度為 20 週，最快發佈為 13 週。我們相信，通過直接渠道快速響應趨勢和消費者反饋的能力為我們提供了顯著的優勢。

Our third strategy is to expand brand penetration. As we discussed during our last call, our current focus is to optimize our space at existing retailers and to execute the expansion into Ulta Beauty. We are making good progress on both fronts. We also continue to build out our priority international markets, including growth at Walmart Canada and at Superdrug in the U.K.

我們的第三個戰略是擴大品牌滲透率。正如我們在上次電話會議中所討論的那樣，我們當前的重點是優化現有零售商的空間，並向 Ulta Beauty 進行擴張。我們在這兩方面都取得了良好進展。我們還繼續發展我們的優先國際市場，包括加拿大沃爾瑪和英國 Superdrug 的增長。

We have a compelling retailer proposition, bringing some of the best consumers, innovation and productivity in the category. Let me take a step back and remind everyone about our approach. Our productivity model entails optimizing revenue through a combination of both average unit retails, or AUR, and units. Across these 2 variables, we have prioritized AUR growth, which we have primarily driven through the expansion of our product assortment to higher price points. Even with $1.49 increase in AUR over the last 4 years, our products remain an extraordinary value. Our AUR is currently less than half of the top 3 mass cosmetics brands. As such, we believe we still have a long runway to continue driving revenue through average unit retails and are comfortable with the trade-off in units that one would expect. This is especially so as we continue to lead productivity in the category with unit-per-foot productivity that is nearly 3x that of the top 3 brands.

我們有一個引人注目的零售商主張，帶來了該類別中一些最好的消費者、創新和生產力。讓我退一步提醒大家我們的方法。我們的生產力模型需要通過平均單位零售量（AUR）和單位的組合來優化收入。在這兩個變量中，我們優先考慮了 AUR 增長，這主要是通過將產品種類擴展到更高的價格點來推動的。即使過去 4 年 AUR 增加了 1.49 美元，我們的產品仍然具有非凡的價值。我們的 AUR 目前還不到前 3 大大眾化妝品品牌的一半。因此，我們相信，我們仍有很長的路要走，才能繼續通過平均單位零售量來推動收入，並且對人們所期望的單位量權衡感到滿意。尤其如此，我們繼續在該類別中引領生產力，每英尺單位生產力幾乎是前 3 個品牌的 3 倍。

One of the great enablers of our productivity model is our direct channels. Our innovation is first introduced on elfcosmetics.com and in our own e.l.f. stores. We continued to see good progress in Q1, completing the replatform of elfcosmetics.com and improving our mobile capabilities. We also opened an exciting new store in Austin, Texas with experiential elements to drive both awareness and engagement.

我們生產力模式的重要推動者之一是我們的直接渠道。我們的創新首先在 elfcosmetics.com 和我們自己的 e.l.f. 上推出。商店。我們在第一季度繼續取得良好進展，完成了 elfcosmetics.com 的平台重構並提高了我們的移動能力。我們還在德克薩斯州奧斯汀開設了一家令人興奮的新店，通過體驗元素來提高知名度和參與度。

I'll now turn it back to Tarang to discuss our operational progress.

現在我將把它轉回塔朗討論我們的運營進展。

Thanks, John. Our fourth strategy is to drive world-class operations, which starts with world-class people. In the first quarter, we appointed Richelle Parham to our Board of Directors. Richelle brings rich business and digital experience to our board, including as the former CMO of eBay. With Richelle's appointment, the majority of our board is now composed of women. Out of roughly 4,800 public companies listed on the NYSE and NASDAQ, we are proud to be one of only 17 that have women as the majority of their board members. Along with an employee base of young, diverse beauty enthusiasts, this shows our commitment to lead inclusivity in our industry.

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。第一季度，我們任命 Richelle Parham 為董事會成員。Richelle 為我們的董事會帶來了豐富的業務和數字經驗，包括擔任 eBay 的前首席營銷官。隨著 Richelle 的任命，我們的董事會現在大部分由女性組成。在紐約證券交易所和納斯達克上市的約 4,800 家上市公司中，我們很榮幸成為僅有的 17 家董事會成員中女性佔多數的公司之一。加上年輕、多元化的美容愛好者的員工群，這表明了我們對引領行業包容性的承諾。

We also continue to build competitive advantage in our operations which, in turn, enables the rest of our business model. Our supply chain delivers the best combination of cost, quality and speed in beauty. In Q1, we brought on our first U.S. manufacturing partner, bringing us additional capabilities in speed and innovation prototyping.

我們還繼續在我們的運營中建立競爭優勢，這反過來又使我們的其他業務模式成為可能。我們的供應鏈在美容領域實現了成本、質量和速度的最佳組合。在第一季度，我們引入了第一個美國製造合作夥伴，為我們帶來了速度和創新原型設計方面的額外能力。

I'll now turn it back to John to discuss our financial progress.

現在我將把它轉回給約翰討論我們的財務進展。

Thanks, Tarang. We are pleased with our first quarter results. Net sales increased 9% to $66 million, reflecting growth across both our national retailer and direct businesses. Gross margin was 61%, in line with expectations. The variance to prior year was driven by foreign exchange headwinds, customer mix and freight, partially offset by margin-accretive innovation. On an adjusted basis, SG&A as a percentage of sales was 48%. Adjusted EBITDA was $11.9 million compared to $11.7 million in 2017. Adjusted net income was unchanged from Q1 2017 at $5.5 million or $0.11 per diluted share. We continue to optimize our inventory levels and are happy with the progress made throughout the quarter.

謝謝，塔朗。我們對第一季度的業績感到滿意。淨銷售額增長 9%，達到 6,600 萬美元，反映出我們全國零售商和直營業務的增長。毛利率為61%，符合預期。與上一年的差異是由外匯不利因素、客戶組合和貨運造成的，但部分被利潤增長的創新所抵消。調整後，SG&A 佔銷售額的百分比為 48%。調整後 EBITDA 為 1,190 萬美元，而 2017 年為 1,170 萬美元。調整後淨利潤與 2017 年第一季度持平，為 550 萬美元，即稀釋後每股收益 0.11 美元。我們繼續優化庫存水平，並對整個季度取得的進展感到滿意。

Turning to our outlook for 2018. We are pleased with the start to the year. And given it is early, we are reaffirming our 2018 guidance.

談談我們對 2018 年的展望。我們對今年的開局感到滿意。鑑於現在還為時過早，我們重申 2018 年的指導方針。

I will now turn it back to Tarang to provide some final thoughts.

現在我將把它轉回塔朗以提供一些最後的想法。

Thanks, John.

謝謝，約翰。

In summary, we're off to a good start for our fiscal year and are especially pleased with our progress making luxurious beauty accessible for all. The combination of our consumer engagement, innovation output and speed, multichannel approach and operations advantage positions us well. There remains a great deal of whitespace for us to pursue both in the U.S. and internationally.

總之，我們的財年有了一個良好的開端，並且對我們在讓所有人都能享受奢華美容方面取得的進展感到特別滿意。我們的消費者參與度、創新產出和速度、多渠道方法和運營優勢相結合，使我們處於有利地位。在美國和國際上，我們仍然有大量的空白需要探索。

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

我現在想請接線員打開提問電話。

(Operator Instructions) Our first question comes from the line of Bonnie Herzog with Wells Fargo Securities.

（操作員說明）我們的第一個問題來自富國銀行證券的邦妮·赫爾佐格（Bonnie Herzog）。

I just wanted to ask you guys a little bit about the category growth and if you've seen any changes versus what you guys saw 3 months ago. And love to give -- or love to get your outlook for the category for the rest of the year. And then how would you characterize the current competitive environment? There just seemed to be so many brand relaunches in mass so far this year. And have you really seen any change in pricing or promotions?

我只是想向你們詢問一些有關品類增長的情況，以及與 3 個月前相比，你們是否看到了任何變化。並且喜歡給予——或者喜歡了解您對該類別今年剩餘時間的展望。那麼您如何形容當前的競爭環境？今年到目前為止，似乎有很多品牌大規模重新推出。您真的看到定價或促銷活動有任何變化嗎？

Sure. Bonnie, this is Tarang. I'd say for the category over the last 4 to 6 weeks, we've seen a little bit of a pickup, but we tend to not focus on shorter periods. I'd say, as we look at the quarter, cosmetics is doing a little bit better, but we haven't -- I think it's still too early to tell kind of fundamental outlook in terms of if the category bounced back or not. In terms of the competitive environment, I don't really see that much of a difference in the competitive environment. There's always a lot of competitive launches, entries, relaunches within the space. I would say we're very well positioned amongst all of them. I think in the last quarter, we've seen a pretty good job from L'Oreal and Maybelline behind some great kind of innovation that they have against consumer. We continue to pick up share. And then I'd say on the price promotion side, again, at least in our data, we don't see necessarily a big uptick in it. But again, we're very well positioned just given our extraordinary value and our ability -- I don't think I've -- we've seen anything different than we've seen in the past and our ability to compete against that.

當然。邦妮，這是塔朗。我想說的是，在過去 4 到 6 週內，該類別的銷量有所回升，但我們往往不關注較短的時期。我想說，當我們觀察這個季度時，化妝品的表現稍好一些，但我們還沒有——我認為現在判斷該類別是否反彈的基本前景還為時過早。就競爭環境而言，我並沒有真正看到競爭環境有多大差異。該領域總是有很多競爭性的發布、進入、重新發布。我想說我們在所有這些人中處於非常有利的位置。我認為在上個季度，我們看到歐萊雅和美寶蓮在針對消費者的一些偉大創新背後做了相當出色的工作。我們繼續增加份額。然後我想說，在價格促銷方面，至少在我們的數據中，我們不一定會看到大幅上漲。但同樣，鑑於我們非凡的價值和我們的能力，我們處於非常有利的位置——我認為我沒有——我們看到了與過去不同的東西，以及我們與之競爭的能力。

Okay. And then if I may just ask one more. Just I know you've reaffirmed guidance, but I'm curious in the context of that. Do you guys still expect your gross margins to be flat year-over-year? And then how should we think about freight costs for the remainder of the year as well as possibly any impact from Chinese labor costs and exchange rates?

好的。然後我可以再問一個嗎？我只知道你重申了指導意見，但我對此很好奇。你們仍然預計你們的毛利率將同比持平嗎？那麼我們應該如何考慮今年剩餘時間的貨運成本以及中國勞動力成本和匯率可能產生的影響？

Bonnie, it's John. So what I'd tell you, obviously, we don't provide specific gross margin guidance. But consistent with some of the commentary we gave on the last call, we would expect 2018 margins from a gross margin standpoint to be generally consistent with the levels in fiscal 2017, so no significant change there. A couple of components that you mentioned between FX and freight, I would tell you FX was built into the plan, as discussed. And certainly, you saw some impact of the USD to RMB exchange rate in the first quarter of 2018. And freight was really a beneficiary to the first couple of quarters last year, and we've called out some significant onetime freight benefits that wouldn't be repeated, which we're also anniversarying in the first quarter and the second quarter as well. So no major departure from what we've talked about, and the first quarter margins were consistent with what we would have expected.

邦妮，這是約翰。所以我要告訴你的是，顯然我們不提供具體的毛利率指導。但與我們在上次電話會議中給出的一些評論一致，我們預計從毛利率的角度來看，2018 年的利潤率將與 2017 財年的水平基本一致，因此不會發生重大變化。您提到的外彙和貨運之間的幾個組成部分，我想告訴您，正如所討論的那樣，外匯已納入計劃中。當然，您在 2018 年第一季度也看到了美元兌人民幣匯率的一些影響。貨運確實是去年前幾個季度的受益者，我們已經指出了一些重大的一次性貨運效益，這些好處不會重複，我們也在第一季度和第二季度慶祝這一點。因此，與我們所討論的情況沒有重大偏差，第一季度的利潤率與我們的預期一致。

Our next question comes from the line of Stephanie Wissink with Jefferies.

我們的下一個問題來自斯蒂芬妮·威辛克（Stephanie Wissink）和杰弗里斯（Jefferies）的對話。

We have 2 questions. First just on the Ulta rollout. Curious if you're getting any preliminary feedback from Ulta or across your retail base in terms of progress with that account. And then secondly, if you could talk a little bit about the disclosure and the fine print in your release on M&A diligence, was curious how you're thinking about over the next few years kind of expanding the breadth of your portfolio either by category or by brand.

我們有 2 個問題。首先是 Ulta 的推出。很好奇您是否從 Ulta 或整個零售基地獲得有關該帳戶進展情況的任何初步反饋。其次，如果您能談談您關於併購盡職調查的新聞稿中的披露和細則，我很好奇您在未來幾年中如何考慮按類別或類別擴大投資組合的廣度按品牌。

Steph, this is Tarang. I'll take the first question and turn it over to John for the second. Regarding our Ulta rollout, it's a key strategic priority of ours this year. The rollout has gone really well. We're off to a very strong start. We like how e.l.f. is set in many of their stores, and initial numbers look good to us. So we're pretty encouraged by that.

斯蒂芬，這是塔朗。我將回答第一個問題並將其交給約翰來回答第二個問題。關於 Ulta 的推出，這是我們今年的一個關鍵戰略重點。推出進展非常順利。我們有了一個非常強勁的開端。我們喜歡 e.l.f.他們的許多商店都設置了這個場景，最初的數字對我們來說看起來不錯。所以我們對此感到非常鼓舞。

And Steph, it's John. On the M&A diligence point and generally our position on prospective acquisitions, I would say fairly unchanged from some of the things that we talked about on the last call. We continue to see a significant opportunity to not only continue to drive growth in the core e.l.f. brand, but also to leverage the capabilities and investments that we've made in the broader platform to extend to other value-creation levers, including the acquisitions of other brands. So we will continue to be active in the market. For us, it's really about finding the right strategic assets that would be a solid complement for us, but consistent with what we've talked about.

斯蒂芬，是約翰。關於併購盡職調查點以及我們對潛在收購的總體立場，我想說的是，與我們上次電話會議中討論的一些事情相比，沒有什麼變化。我們繼續看到一個重要的機會，不僅可以繼續推動核心 e.l.f. 的增長。品牌，同時也利用我們在更廣泛的平台上進行的能力和投資，擴展到其他價值創造槓桿，包括收購其他品牌。因此，我們將繼續活躍於市場。對我們來說，這實際上是為了找到合適的戰略資產，這對我們來說是一個堅實的補充，但與我們所討論的內容一致。

Our next question comes from the line of Andrea Teixeira with JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

Just wanted to go back to the commentary about the gross margin. John, you said to Bonnie's question flat margins, right? I mean, it's the guidance. But you obviously started the year with a bigger impact, and this is going to smooth out as we progress because, obviously, you have some -- the impacts were being felt the beginning of last year -- beginning of kind of the second half of last year. So do you think you're being able to pass on most of the price increases through on the trade? Or would you say you're half of the way? Or how do you see that happening? And in terms of elasticity, you said you were less worried about volume at this point. But obviously, that's something that -- for a brand that can have aspirations to enter a bigger market share. Can you comment on how that has been impacting your new clients kind of on loyalty, if you will, in terms of innovating on the price levels that you're used to or your price levels that you are most -- you have the core consumer at? So if you can comment on those 2 aspects, I would appreciate it.

只是想回到關於毛利率的評論。約翰，你對邦妮的問題說的是平利潤，對吧？我的意思是，這是指導。但顯然，今年伊始就產生了更大的影響，隨著我們的進展，這種影響將會變得平穩，因為，顯然，去年年初就已經感受到了一些影響，從下半年開始就已經感受到了影響。去年。那麼您認為您能夠通過交易轉嫁大部分價格上漲嗎？或者你會說你已經成功了一半？或者你如何看待這種情況的發生？就彈性而言，您說您目前不太擔心成交量。但顯然，對於一個渴望進入更大市場份額的品牌來說，這是值得的。如果您願意的話，您能否評論一下這對您的新客戶的忠誠度有何影響？就您習慣的價格水平或您最喜歡的價格水平進行創新而言——您擁有核心消費者在？因此，如果您能對這兩個方面發表評論，我將不勝感激。

Sure. I think there are a couple of things there. One, just on kind of pricing actions and sort of where we sit from an AUR standpoint. And I just want to be clear that as it pertains to gross margin, we have not taken any price increases certainly in 2018. And the majority of the AUR increase that you've seen historically for this business has been innovation led, as we've expanded to higher price points. I think to your core question of how those price points have evolved over time and how our proposition in the market continues to resonate, I would go back to some of the commentary that Tarang mentioned in our opening comments just around what happened with our value rating and how we've continued to extend the franchise through that point. Certainly, as you mentioned, as you continue to take prices up, there can be a trade-off in terms of units, but we're very focused on the optimization of overall revenue, while at the same time, making sure that we still have the strong value proposition. Given the improvements in our value rating over that time period, in addition to all the feedback we continue to get through direct channels and with our consumers, we feel quite good about how we're positioned there. From a gross margin standpoint, just to speak to that for a minute, we obviously -- our company does not provide quarterly guidance and try not to provide gross margin guidance either. But what I will tell you is what we're really focused on in any aspect of the business is the year. And as we talk about 2018 fiscal versus 2017 fiscal, we had mentioned that those margins would be relatively similar. Of course, as you go throughout the year, just given the dynamic nature of our business, you will see variability. And we did have a couple of things in the first quarter of last year which we called out, one being freight, which was pretty significant that we're in the process of anniversarying. But I would focus you back on the overall year in terms of how we see gross margin evolving.

當然。我認為有幾件事。第一，只是關於定價行為的類型以及我們從 AUR 的角度來看的立場。我只是想澄清一下，就毛利率而言，2018 年我們肯定沒有提價。您在歷史上看到的該業務的大部分 AUR 增長都是由創新主導的，因為我們已經擴展到更高的價格點。我認為，對於你的核心問題，即這些價格點如何隨著時間的推移而演變，以及我們在市場上的主張如何繼續引起共鳴，我想回到塔朗在我們的開場評論中提到的一些評論，圍繞我們的價值評級發生了什麼以及我們如何在這一點上繼續擴展特許經營權。當然，正如您提到的，當您繼續提高價格時，可能會在單位方面進行權衡，但我們非常注重整體收入的優化，同時確保我們仍然具有強大的價值主張。鑑於我們在這段時間內價值評級的提高，除了我們繼續通過直接渠道和消費者獲得的所有反饋之外，我們對自己的定位感到非常滿意。從毛利率的角度來看，我們公司顯然不提供季度指導，也盡量不提供毛利率指導。但我要告訴你的是，我們在業務的任何方面真正關注的是這一年。當我們談論 2018 財年與 2017 財年時，我們提到這些利潤率將相對相似。當然，隨著全年的發展，鑑於我們業務的動態性質，您會看到變化。去年第一季度我們確實做了幾件事，其中之一就是貨運，這對於我們正在慶祝的過程來說非常重要。但我想請您回顧一下全年毛利率的變化情況。

And then on -- this is helpful. Then the repositioning that you announced on the fourth quarter, how far are you in that process?

然後——這很有幫助。那麼您在第四季度宣布的重新定位，目前進展到什麼程度了？

Sorry, Andrea. I don't -- I mean, we didn't follow that, what repositioning?

對不起，安德里亞。我不——我的意思是，我們沒有遵循這一點，什麼重新定位？

Yes. I remember that you called Walmart and Target your core clients. You're trying to reposition your mix. And I think you alluded to that mix effect that you just discussed, right? It's not a pricing activity. It's just you're selecting what are the SKUs that make most sense for you to keep. Correct me if I'm wrong, but I got the perception that you are reanalyzing your portfolio. And my question is that -- how -- what are your -- why are you -- like the evolution of that process, how far are you in that? if you say 50% of that? Or are you still in the beginning?

是的。我記得您稱沃爾瑪和塔吉特為您的核心客戶。您正在嘗試重新定位您的混音。我想你提到了你剛才討論的混合效應，對吧？這不是定價活動。您只需選擇最適合您保留的 SKU。如果我錯了，請糾正我，但我覺得你正在重新分析你的投資組合。我的問題是——你的——你為什麼——就像這個過程的演變，你在這個過程中走了多遠？如果你說50%？或者你還處於起步階段嗎？

Sure. So we call that the -- our optimization of the space gains we got last year. So we picked up quite a bit of space at Target and Walmart. The way our model works is we'll land that space and then we'll optimize it in the spring resets that these retailers do. So the first one to set was Walmart for us in Q1, and we feel very good about kind of how that optimization is going at Walmart in terms of kind of our productivity on those shelves. Target this year set later than they did last year, and so we did see some higher levels of out of stocks earlier in the quarter as product ran out before the new sets were shelved. And then in addition, we had a very big merchandising program last year, really focused on our innovation, really highlighting our innovation. We had merchandising this year, too, but focused more on some of our product collaborations, and innovation's not quite as big. So I'd say over the next few months, we'll see how the productivity pans out at Target. But overall, I think we're feeling pretty good. Certainly, Walmart is pretty much fully set. And Target, we're in process of further optimization.

當然。所以我們稱之為——我們對去年獲得的空間收益的優化。因此，我們在塔吉特和沃爾瑪佔據了相當大的空間。我們的模型的運作方式是，我們將登陸該空間，然後我們將在這些零售商所做的春季重置中對其進行優化。因此，第一季度為我們設定的第一個目標是沃爾瑪，我們對沃爾瑪在貨架上的生產力方面的優化進展感到非常滿意。今年的目標設定晚於去年，因此我們確實在本季度早些時候看到了更高的缺貨水平，因為產品在新系列被擱置之前就已售完。此外，去年我們有一個非常大的營銷計劃，真正專注於我們的創新，真正突出我們的創新。今年我們也進行了商品推銷，但更多地關注於我們的一些產品合作，創新力度沒有那麼大。所以我想說，在接下來的幾個月裡，我們將看到 Target 的生產力如何發揮。但總的來說，我認為我們感覺很好。當然，沃爾瑪已經準備就緒。至於 Target，我們正在進一步優化。

Our next question comes from the line of Bill Chappell with SunTrust.

我們的下一個問題來自 SunTrust 的 Bill Chappell。

Can you talk a little bit more about just what's going on with optimization? And I know how you love to talk about the Nielsen's. So why don't we talk about the Nielsen's? When I say that, the paradox is this time last year, you were getting 50% more shelf space at Target and then eventually 20% more shelf space at Walmart. And the Nielsen's kept decelerating. Now you're not getting any big new wins this year as planned, and the Nielsen's are accelerating. So I'm just trying to understand, when you talk about optimization, is it maximizing out of stocks? Is it reworking what the product set looks like so that the sell-through is that much better? And where are we in that stage? Do you feel like, hey, you've got -- you've cracked the code for both those retailers, so these Nielsen numbers should kind of continue or if not accelerate?

您能多談談優化的情況嗎？我知道你多麼喜歡談論尼爾森一家。那麼我們為什麼不談談尼爾森呢？當我這麼說時，矛盾之處在於去年的這個時候，塔吉特 (Target) 的貨架空間增加了 50%，最終沃爾瑪 (Walmart) 的貨架空間增加了 20%。尼爾森的增速一直在放緩。現在，今年你並沒有按計劃獲得任何重大的新勝利，而尼爾森的勝利正在加速。所以我只是想了解，當你談論優化時，它是最大化缺貨嗎？是不是要重新設計產品組的外觀，以使銷售量更好？那麼我們在那個階段處於什麼階段呢？您是否覺得，嘿，您已經破解了這兩家零售商的密碼，因此尼爾森的這些數字應該會繼續下去，或者如果沒有加速的話？

Yes. So we've always had a little bit of a disconnect between -- depending on the time period you look at Nielsen versus what we see, and particularly given it doesn't cover all of our business. But in terms of the optimization, I'll just -- in terms of how we approach it, John discussed that a key part of our model is we put all our innovation on to our direct channels first, both elfcosmetics.com as well as our own retail stores. We're able to get data off of that in terms of the performance of those products. And then really it's the big resets, usually the spring resets and there's an update in the fall, where we're were able to get some of those new products on more broadly to some of our big retail partners. So a little bit of the way it worked is we'll get the space, but the space sometimes will be kind of, I would call it, whatever assortment is available then for the retailer to take. We'll then have an entire year of launches into -- of our new product launches. And one of the big hallmarks for us is both the output and speed of our innovation. We launched 128 items last year. We can take that data and then decide what we want to give them in terms of being able to replace. So we can replace as much as 25% to 30% of the SKUs that are on a Walmart or Target shelf set with new items that we can put on. And that's what we mean by optimization. We're looking at assortment and saying -- working with the retailers, figure out what the right assortment is for them. And that's why sometimes you'll see -- and I think that the year we have full year data is 2016. We didn't pick up any more space at Target, and we saw a very strong growth year. It was as a result of that optimization. And so I think it's a continual process that we end up going through and also includes signage, communication, how products flow on to the shelf. And we're able to kind of monitor how those SKUs are doing. So a little bit more detail than you wanted, but it's a continual process for us.

是的。因此，我們之間總是存在一些脫節——具體取決於您查看尼爾森的時間段與我們所看到的時間段，特別是考慮到它並沒有涵蓋我們的所有業務。但在優化方面，我只是 - 就我們如何實現它而言，約翰討論了我們模型的關鍵部分是我們首先將所有創新放在我們的直接渠道上，包括 elfcosmetics.com 和我們自己的零售店。我們能夠從中獲取有關這些產品性能的數據。然後實際上是大的重置，通常是春季重置，秋季有更新，我們能夠更廣泛地向我們的一些大型零售合作夥伴提供一些新產品。因此，它的工作方式之一是我們將獲得空間，但空間有時會是一種，我稱之為，零售商可以使用的任何品種。然後我們將有一整年的時間推出新產品。我們的一大標誌是創新的產出和速度。去年我們推出了 128 款產品。我們可以獲取這些數據，然後決定我們想要為他們提供哪些可替換的內容。因此，我們可以用我們可以上架的新商品替換 Walmart 或 Target 貨架上多達 25% 到 30% 的 SKU。這就是我們所說的優化。我們正在研究品種並說——與零售商合作，找出適合他們的正確品種。這就是為什麼有時你會看到——我認為我們擁有全年數據的年份是 2016 年。我們沒有在塔吉特獲得更多空間，但我們看到了非常強勁的增長。這是優化的結果。所以我認為這是一個我們最終要經歷的持續過程，還包括標牌、溝通、產品如何流向貨架。我們能夠監控這些 SKU 的表現。所以比您想要的更詳細一些，但這對我們來說是一個持續的過程。

No. That helps. And then also the comment on a domestic manufacturer. Just trying to understand what that brings in terms of -- I mean, you already have very quick time to market of products. You've always -- kind of the hallmark of the company has been the China sourcing model. So just will we expect to see more of that? And what does that bring to either the top line or to the bottom line?

不。這有幫助。然後還有對國內一家廠商的評論。只是想了解這會帶來什麼——我的意思是，您已經可以非常快地將產品推向市場。中國採購模式一直是該公司的標誌。那麼我們會期待看到更多這樣的事情嗎？這會給營收或利潤帶來什麼？

Yes. As we've said, we have the best combination of cost, quality and speed in our industry, and it's the supply chain advantage we've honed over the last 14 years. So this really is about augmenting that advantage with a U.S. supplier that can help improve our speed and innovation prototyping. So it's just really strengthening our current model. The majority of it will just continue to be in China, which we've honed in. We just think it further strengthens the advantage that we have, particularly on innovation.

是的。正如我們所說，我們擁有行業中成本、質量和速度的最佳組合，這是我們在過去 14 年裡磨練出來的供應鏈優勢。因此，這實際上是為了增強與美國供應商的優勢，這有助於提高我們的速度和創新原型設計。所以這確實加強了我們當前的模式。其中大部分將繼續在我們已經磨練過的中國。我們只是認為這進一步增強了我們的優勢，特別是在創新方面。

But does that mean time-to-market could go down even lower? I mean, can we...

但這是否意味著上市時間可能會縮短？我的意思是，我們可以...

That's always our goal. I mean, I think we stress kind of our numbers over time that I think we -- in the last call, we talked about our 4-year progress, where we used to be over 30 weeks for us to launch a new product on average. Last year, as I mentioned, we launched 128 items, and the average was 22 weeks from idea to selling in our direct channels. We talked this first quarter, the average in the items we launched in the first quarter was about 20 weeks and the fastest being 13. So we always strive to improve our speed. And when we look at speed, we're looking at it as an average across all of our launches, not just a select few. So I think we have a real advantage when it comes to innovation, both the output as well as the speed. And we will continue to improve that advantage.

這始終是我們的目標。我的意思是，我認為我們強調隨著時間的推移我們的數字，我認為我們- 在上次電話會議中，我們談到了我們4 年的進展，過去我們平均需要30 週多的時間來推出新產品。正如我提到的，去年我們推出了 128 款產品，從創意到在我們的直接渠道銷售平均需要 22 週。我們談到了第一季度，我們第一季度推出的產品平均約為 20 週，最快的是 13 週。所以我們總是努力提高我們的速度。當我們考慮速度時，我們將其視為所有發布的平均值，而不僅僅是少數幾個。因此，我認為我們在創新方面擁有真正的優勢，無論是產量還是速度。我們將繼續提高這一優勢。

Our next question comes from the line of Mr. Jon Andersen with William Blair.

我們的下一個問題來自喬恩·安德森先生和威廉·布萊爾的對話。

A couple of questions. Could you unpack, to the extent that you're willing to, the 9% growth in the quarter, how much, generally speaking, was kind of velocity or same-shelf growth and what the contribution from new locations was? And then as we think about the guidance for the full year, 6% to 8%, the composition of that as well from a velocity versus distribution expansion standpoint.

有幾個問題。您能否在您願意的範圍內解釋一下本季度 9% 的增長，一般來說，速度或同貨架增長是多少，以及新地點的貢獻是什麼？然後，當我們考慮全年的指導時，6% 到 8%，以及從速度與分銷擴張的角度來看其構成。

Jon, it's John. The big picture, I would say, on the 6% to 8%, just kind of going back to some of the commentary we made on the last call, really it was predicated on that existing distribution that we had and the continued optimization efforts that Tarang just talked through as well as the expansion of our full chain rollout at Ulta Beauty, which is just in the process of completing. So that's how we think about the broader year. As it pertains to the quarter, I would tell you the themes aren't that different. So as we think about some of the drivers underpinning the 9%, while we don't break that out at a granular level, certainly, some of the space that we got last year and the sort of anniversary impact as well as some benefit from Ulta Beauty, despite the fact that those stores we're setting throughout the quarter, were beneficiaries to that headline growth rate.

喬恩，是約翰。我想說的是，關於 6% 到 8%，只是回顧一下我們在上次通話中所做的一些評論，實際上它是基於我們現有的分佈以及持續的優化工作Tarang 剛剛談到了我們在Ulta Beauty 的全連鎖推廣的擴展，這剛剛完成。這就是我們對更廣泛的一年的看法。就本季度而言，我會告訴您主題並沒有那麼不同。因此，當我們考慮支撐 9% 的一些驅動因素時，雖然我們沒有在粒度層面上進行詳細說明，但當然，我們去年獲得的一些空間以及週年紀念日的影響以及從中受益儘管我們在整個季度開設了這些商店，但Ulta Beauty 仍然是總體增長率的受益者。

Is the Ulta rollout complete? And was that wholly contained within the first quarter?

Ulta 推出完成了嗎？這完全包含在第一季度嗎？

No. We had said that it was going to be first half of '18. So it is largely complete right now but it did go past the first quarter.

不。我們說過這將是 18 年上半年。所以目前已經基本完成，但確實已經過了第一季度。

Okay. And then a quick follow-up. You talked about a lot of kind of whitespace remains for the brand in the U.S. and internationally, and that's clearly the case. Can you talk a little bit about how the international portion of the business is performing and any opportunities to expand either with existing retailers or future retailers? And then from just an overall timing perspective domestically, how should we think about other big chain opportunities and the timing around those?

好的。然後快速跟進。您談到該品牌在美國和國際上仍然存在很多空白，情況顯然就是如此。您能否談談該業務的國際部分的表現以及與現有零售商或未來零售商合作的任何擴展機會？那麼，僅從國內整體時機的角度來看，我們應該如何考慮其他大型連鎖機會以及圍繞這些機會的時機？

So on the international business, we feel great about the progress on international. As just a reminder, our international footprint, the main components of it really are with Walmart in Canada and Mexico and then our entry last year in Superdrug in the U.K. We've continued to see really good progress with Walmart internationally and feel really great about our Superdrug business. And what we find is that the brand really does resonate in these international markets. The combination of high quality, extraordinary value and our engagement model resonates in each of these markets, so we feel quite bullish about international going forward.

所以在國際業務上，我們對國際化的進展感到非常高興。提醒一下，我們的國際足跡，其主要組成部分確實是加拿大和墨西哥的沃爾瑪，然後是我們去年進入英國的 Superdrug。我們繼續看到沃爾瑪在國際上取得了非常好的進展，並且感覺非常好我們的超級藥物業務。我們發現該品牌確實在這些國際市場上引起了共鳴。高品質、非凡價值和我們的參與模式相結合，在每個市場中引起共鳴，因此我們對國際化的未來感到非常樂觀。

And Jon, to your point on new distribution, what I'd tell you is back to the comment around whitespace that we mentioned earlier, certainly, a number of places where we think the e.l.f. brand can go that it isn't currently carried. We're constantly in conversations with prospective partners. For us, it's really about where the beauty enthusiast wants to see e.l.f. and making sure that, that particular retailer partner is committed to executing the category well and that it's on the right terms, certainly continue to have a number of folks who would be potential candidates over time.

Jon，對於你關於新發行版的觀點，我要告訴你的是我們之前提到的關於空白的評論，當然，我們認為 e.l.f. 的一些地方。品牌可以去，但目前尚未攜帶。我們不斷與潛在的合作夥伴進行對話。對我們來說，這實際上是美容愛好者想要在哪裡看到精靈的問題。並確保該特定零售商合作夥伴致力於良好地執行該類別，並且以正確的條件進行，隨著時間的推移，肯定會繼續擁有許多人成為潛在的候選人。

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

我們的下一個問題來自達拉·莫赫森尼安 (Dara Mohsenian) 與摩根士丹利 (Morgan Stanley) 的對話。

So if we look at the Nielsen data, it looks like your volume trends are declining on a mid-single-digit basis year-over-year year-to-date. And I'd assume that volume is down also on a reported basis at your larger retailer customers, just backing out Ulta, DTC, international and some of the solid price mix. So a, can you just give us more clarity on what's driving those volume declines at your larger retailers, especially in light of the increased shelf space? And b, how does that impact the ability to garner sort of new distribution wins over time?

因此，如果我們查看尼爾森的數據，您會發現，今年迄今為止，您的銷量趨勢正以中個位數的速度下降。我認為，根據報告，大型零售商客戶的銷量也有所下降，只是退出了 Ulta、DTC、國際和一些固定的價格組合。那麼，您能否讓我們更清楚地了解是什麼導致大型零售商的銷量下降，特別是考慮到貨架空間的增加？b，隨著時間的推移，這對獲得新的發行勝利的能力有何影響？

Sure, Dara. So I don't know if we're looking at the same data because as we take a look at the last 12 weeks in Nielsen kind of ending kind of in March, we were up 4% in that tracked business. And as we've explained before, our business is broader than kind of tracked. In terms of key customers, I think we described both in terms of Walmart, which is already reset, we feel pretty good about the trends that we're seeing there. I explained on kind of Target and kind of the merchandising and out-of-stocks difference versus a year ago, so we'll have to wait a couple more months there. But I'd say, overall footprint, we're satisfied with where we're at right now and don't see -- continue to see real potential as we go forward.

當然，達拉。所以我不知道我們是否在查看相同的數據，因為當我們查看尼爾森過去 12 週（在 3 月份結束）時，我們在該跟踪業務中增長了 4%。正如我們之前所解釋的，我們的業務比跟踪的範圍更廣泛。就主要客戶而言，我認為我們用沃爾瑪來描述，沃爾瑪已經重置，我們對在那裡看到的趨勢感覺非常好。我解釋了塔吉特的情況以及商品銷售和缺貨情況與一年前的差異，所以我們還得再等幾個月。但我想說，就總體足跡而言，我們對目前所處的位置感到滿意，並且沒有看到 - 在我們前進的過程中繼續看到真正的潛力。

Okay. I mean, I guess, I'm looking at it on sort of a year-to-date basis as opposed to just the last couple of periods. But even if I just looked at reported trends, with the strength you mentioned in DTC, international, the Ulta launch, price mix, it would seem like volumes have been down in the last couple of quarters year-over-year. If I'm incorrect, correct me, but I'm just trying to get...

好的。我的意思是，我想，我是在今年迄今為止的基礎上看待它，而不是僅僅在過去的幾個時期內。但即使我只看報告的趨勢，考慮到您在 DTC、國際、Ulta 發布、價格組合方面提到的實力，過去幾個季度的銷量似乎同比有所下降。如果我錯了，請糾正我，但我只是想...

I got it. So sorry, so I was talking -- got it. So we're talking 2 different things. I was talking dollars and I think you were talking units. So I get it. So as we talked earlier in the call, we've had a conscious strategy over the last 4 years of really driving average unit retail as a primary driver of revenue growth. And what's different about our business [and] many others, as we described, our unit productivity versus the top 3 brands in the category is nearly 3x that of the top 3 brands. So we felt there was a real opportunity. In fact, one of our biggest challenges was staying in stock in a number of our retailers. So we have been optimizing AUR primarily through margin-accretive innovation and have been willing to take lower volumes for that. We have such a big gulf between us and the next-best brand in terms of unit productivity. That's been very conscious. So we tried to talk to that kind of in the comments. It's not that different than what we've seen kind of in the past as we've optimized AUR. And we're comfortable with that mix, particularly as we've talked about our revenue guidance.

我得到了它。很抱歉，所以我正在說話 - 明白了。所以我們正在談論兩件不同的事情。我說的是美元，我想你說的是單位。所以我明白了。因此，正如我們之前在電話會議中所說的那樣，我們在過去 4 年裡制定了一項有意識的戰略，真正推動平均單位零售量成為收入增長的主要推動力。正如我們所描述的，我們的業務[和]許多其他業務的不同之處在於，我們的單位生產力與該類別中排名前 3 的品牌相比，幾乎是排名前 3 的品牌的 3 倍。所以我們覺得這是一個真正的機會。事實上，我們面臨的最大挑戰之一是在許多零售商中保持庫存。因此，我們主要通過利潤增值創新來優化 AUR，並願意為此降低產量。就單位生產力而言，我們與次優品牌之間存在巨大差距。這是非常有意識的。所以我們嘗試在評論中討論這種問題。這與我們過去看到的並沒有什麼不同，因為我們優化了 AUR。我們對這種組合感到滿意，特別是當我們討論了我們的收入指導時。

Okay, and that makes sense. The pricing has been impressive, and obviously, still a nice contributor over the last couple of quarters. But I guess, what I'm wondering is it does seem like there's been a clear slowdown versus that great longer-term 4-year history that you mentioned. So what's sort of the difference? Because it doesn't feel like price mix has accelerated. You've obviously had the strong growth there for a number of years, but it feels like volume has decelerated in the last couple of quarters. So I'm just trying to understand the sequential change in year-over-year growth.

好吧，這是有道理的。定價令人印象深刻，顯然，在過去幾個季度中仍然是一個不錯的貢獻者。但我想，我想知道的是，與你提到的那段長期的四年曆史相比，似乎確實出現了明顯的放緩。那麼有什麼區別呢？因為感覺價格組合併沒有加速。顯然，多年來那裡的增長強勁，但感覺銷量在過去幾個季度有所放緩。所以我只是想了解同比增長的連續變化。

I think some of the themes we talked last year were we did hit some headwinds in terms of the overall category, and we're not immune from overall category headwinds. We factored that in as we provided guidance for this year. I think people were worried about where the category was, so we said don't assume any change in category trajectory. And we can continue to see that as we go forward. Two, this combination, there's always going to be a healthy tension for us of driving AUR and extraordinary value at the same time. And we feel really good about our progress there. I mean, again, I haven't seen a brand drive AUR to the extent that we have and still achieve the highest value ratings in the category. So we believe there's real power to continue to do that as we go forward. And so I think we also talked about the difference between year-over-year in terms of the number of new doors and space we picked up. We said this year, we're really focused on optimizing our existing space as well as the Ulta Beauty rollout, and so probably haven't built into that 6% to 8% -- I think as we look to last year, people got confused about what was in, what wasn't in. So we said, hey, 6% to 8% is based on these things, and so that would explain the real difference.

我認為我們去年討論的一些主題是我們確實在整個類別方面遇到了一些阻力，而且我們也不能免受整體類別阻力的影響。我們在為今年提供指導時考慮了這一點。我認為人們擔心類別的位置，所以我們說不要假設類別軌蹟有任何變化。隨著我們的前進，我們可以繼續看到這一點。第二，這種結合對我們來說總是會產生一種健康的張力，同時推動 AUR 和非凡的價值。我們對我們在那裡取得的進展感到非常滿意。我的意思是，我還沒有看到哪個品牌將 AUR 推向我們已經並且仍然達到該類別中最高價值評級的程度。因此，我們相信，在我們前進的過程中，我們有真正的力量繼續這樣做。因此，我認為我們還討論了新門數量和新空間數量與去年同期的差異。我們說過，今年，我們真正專注於優化現有空間以及 Ulta Beauty 的推出，因此可能還沒有納入 6% 到 8% 的範圍內——我認為，當我們展望去年時，人們得到了對裡面有什麼，沒有什麼感到困惑。所以我們說，嘿，6% 到 8% 是基於這些事情，這樣就可以解釋真正的差異。

Our next question comes from the line of Oliver Chen with Cowen and Company.

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

Regarding Social Standards and your use of data analytics, what are your thoughts on the year ahead in terms of how you're harnessing that in your existing accounts? And a second question, which is regarding Target. As Target conducts a lot of their reimagining stores and also reimagining a lot of the beauty area of those stores, how does that position you? It looks like the displays are really quite good in a lot of these new stores. Would love your thoughts there.

關於社會標準和您對數據分析的使用，您對未來一年如何在現有賬戶中利用它有什麼想法？第二個問題是關於塔吉特的。由於塔吉特對他們的許多商店進行了重新設計，並且也重新設計了這些商店的許多美容區域，這對您有何定位？看起來很多新店的陳列都非常好。會喜歡你的想法。

Oliver, it's John. Why don't I take the Social Standards piece and then let Tarang comment on some of the things that we're seeing at Target? But directly to your question, I'd say we're thrilled with some of the capabilities that, that partnership and investment has brought us. As we think about different ways to harness and leverage data to make better decisions throughout, really, a number of different areas of our business, ranging from product innovation, quick responsiveness to trends or even identification of really great authentic partners that could be good members of our Beautyscape program and good advocates of e.l.f. over time, it's been incredibly powerful in terms of some of the things that, that has done for us. I think it's part of a broader theme of how we leverage data here in the business. Obviously, starting with the core direct channels and some of the approach that we've built over the last 14 years and how we validate that innovation. But it's been a strong complement to some of those activities.

奧利弗，這是約翰。為什麼我不接受《社會標準》的文章，然後讓 Tarang 評論我們在塔吉特看到的一些事情？但直接回答你的問題，我想說的是，我們對合作夥伴關係和投資給我們帶來的一些能力感到興奮。當我們思考不同的方法來利用數據來做出更好的決策時，實際上，我們業務的許多不同領域，從產品創新、對趨勢的快速響應，甚至識別可能成為優秀會員的真正優秀的合作夥伴我們的Beautyscape 計劃和e.l.f. 的良好倡導者。隨著時間的推移，它在為我們所做的一些事情方面變得非常強大。我認為這是我們如何在業務中利用數據的更廣泛主題的一部分。顯然，從核心直接渠道和我們在過去 14 年中建立的一些方法以及我們如何驗證該創新開始。但這是對其中一些活動的有力補充。

And then on Target, as you know, Oliver, it's -- they are our longest-standing retail partner, and we love working with Target. And one of the reasons we love working with them is they take beauty extremely seriously and they're always looking to see how they continue to kind of expand their leadership there. So whether it'd be their beauty blowout stores where you have the elevated fixturing and communication or some of the things they do both in terms of merchandising as well as assortment, there's lots of opportunities for us to partner with them. So on the beauty blowout stores, we're looking at different kind of configurations that kind of continue to elevate e.l.f.'s presence and space within Target there. In terms of merchandising, I think one of the best examples was what we did with Target over the holiday period, where we really were a critical part of their holiday success in beauty and gifting. And then in assortment, Target is -- was a lead customer for our Beauty Shield line as we expanded it from our direct channels into national retailers. And that's doing extremely well, including, I think, the product that we described getting the Glamour best of beauty award, our magnetic mask is really one of our top items within Target. And really that collaboration and partnership continues to be kind of a real hallmark in terms of our business model.

然後是塔吉特，正如你所知，奧利弗，他們是我們歷史最悠久的零售合作夥伴，我們喜歡與塔吉特合作。我們喜歡與他們合作的原因之一是他們非常重視美麗，並且總是希望看到如何繼續擴大他們在那裡的領導地位。因此，無論是他們的美容井噴店（那裡有更高的設備和溝通）還是他們在商品推銷和品種方面所做的一些事情，我們都有很多機會與他們合作。因此，在美容品井噴店中，我們正在尋找不同類型的配置，以繼續提升 e.l.f. 在塔吉特 (Target) 內的存在感和空間。在商品推銷方面，我認為最好的例子之一是我們在節日期間與塔吉特所做的事情，我們確實是他們在美容和禮品方面取得節日成功的關鍵部分。然後在產品類別中，Target 是我們 Beauty Shield 系列的主要客戶，因為我們將其從直接渠道擴展到全國零售商。這做得非常好，我認為包括我們描述的獲得魅力最佳美容獎的產品，我們的磁性面膜確實是我們塔吉特公司的頂級產品之一。事實上，就我們的商業模式而言，協作和夥伴關係仍然是一個真正的標誌。

Okay. And lastly, on the color cosmetics versus skincare and also the degree of newness every year, what should we understand with your product mix evolution? As you continue to think about attractive diversification and executing on micro trends, how will the mixes evolve? And if there are any margin considerations we should know about in our long-term modeling.

好的。最後，關於彩妝與護膚品以​​及每年的新穎程度，我們應該對你們的產品組合演變有何了解？當您繼續思考有吸引力的多元化並執行微觀趨勢時，組合將如何演變？如果有任何邊際考慮因素，我們應該在長期建模中了解。

Yes. Oliver, all I'd say is, generally speaking, you're quite aware of our evolving skincare portfolio, which we continue to be very excited about. We only first launched skincare a couple of years ago. So we still see a tremendous potential to expand that over time. The preponderance of the business is still in color, and I think you'll continue to see that for some time just given the nature of the history that we have there and how emergent that skincare business is. But fair to say that we'll see skincare increasing in terms of the penetration of our portfolio.

是的。奧利弗，我想說的是，一般來說，您非常了解我們不斷發展的護膚產品組合，我們仍然對此感到非常興奮。我們幾年前才首次推出護膚品。因此，隨著時間的推移，我們仍然看到了擴大這一領域的巨大潛力。該業務的優勢仍然是彩妝業務，考慮到我們在那裡的歷史性質以及護膚品業務的新興程度，我認為您將在一段時間內繼續看到這一點。但公平地說，我們將看到護膚品在我們產品組合中的滲透率不斷提高。

Our next question comes from the line of Erinn Murphy with Piper Jaffray.

我們的下一個問題來自艾琳·墨菲 (Erinn Murphy) 和派珀·賈弗雷 (Piper Jaffray) 的對話。

I guess, my first question is just a clarification on how you're thinking about the cadence of sales guidance. I mean, clearly, you're above the range of 6% to 8% in the first quarter, but you're lapping tougher comparisons in Q2 and Q3, both in the mid to upper 20s. So curious if we should expect kind of a flattish in the next couple of quarters and then a reacceleration in the fourth quarter or any kind of timing or things we should be aware of. I know Ulta is still rolled out in Q2 as well. So any help on that would be great.

我想，我的第一個問題只是澄清您如何看待銷售指導的節奏。我的意思是，很明顯，第一季度的增長率高於 6% 到 8% 的範圍，但第二季度和第三季度的比較更加嚴格，兩者都在 20 多歲左右。很好奇我們是否應該預期未來幾個季度會出現平穩，然後在第四季度重新加速，或者我們應該注意的任何時間或事情。我知道 Ulta 仍在第二季度推出。因此，對此的任何幫助都會很棒。

Erinn, it's John. Obviously, a difficult question to answer in that we don't provide quarterly guidance. But I think you kind of touched on a few important points. In the e.l.f. business, obviously, a lot of changes that you can see from quarter-to-quarter. If you look at our history since IPO, I think it's demonstrated in the results that we've announced depending on what could be happening in the prior year or new pieces of distribution or new programs that come in, in the current period. As we think about the second and third quarter last year, obviously, those were very strong in terms of headline growth. And so all I would say is as you think about the anniversary impact, certainly, we'd take that into account relative to the cadence throughout the year.

艾琳，是約翰。顯然，這是一個很難回答的問題，因為我們不提供季度指導。但我認為你觸及了一些重要的觀點。在 e.l.f.顯然，您可以看到每個季度的業務都發生了很多變化。如果你看看我們自首次公開募股以來的歷史，我認為這在我們宣布的結果中得到了證明，這取決於前一年可能發生的情況或當前時期出現的新發行或新計劃。當我們思考去年第二和第三季度時，顯然，就總體增長而言，這些季度非常強勁。因此，我想說的是，當您考慮週年紀念日的影響時，當然，我們會相對於全年的節奏考慮這一點。

Okay. But you're not providing specific Q2-ish thoughts, just to get the consensus aligned at this point?

好的。但您沒有提供具體的第二季度想法，只是為了在這一點上達成共識？

No. We just don't as a policy. Since IPO, we haven't issued quarterly guidance. And I think again, it's not to hold back on disclosure. It really is just a reflection of how many timing elements there are in the business and the danger of doing that, but certainly try and help you guys understand some of the things that were happening in the prior year.

不。我們只是不作為政策。自首次公開募股以來，我們尚未發布季度指引。我再次認為，這並不是要阻止披露。這實際上只是反映了業務中有多少時間因素以及這樣做的危險，但肯定會嘗試幫助你們了解前一年發生的一些事情。

Got it. And then just a couple of other ones for me then. Just on customer mix. I know that was still a headwind for gross margin. Any kind of clarification around how big that was of the overall 200 basis point erosion? And then where are we at right now? Or what's your assumption for overall off-price for this year? I know it was a little bit higher than last year. But is it kind of normalized as we exit Q1? Any help there?

知道了。然後我還有其他一些。只是關於客戶組合。我知道這對毛利率來說仍然是一個阻力。有沒有關於 200 個基點整體下降幅度有多大的澄清？那麼我們現在在哪裡？或者您對今年整體折扣的假設是什麼？我知道這個數字比去年高一點。但當我們退出第一季度時，它是否已經正常化了？有什麼幫助嗎？

Yes. So just to take the second part of that, I would tell you we don't have higher plans for off-price this year relative to last year. We've long said that off-price is a core part of our business as we take items off the wall and discontinue items, and it's been roughly less than 5% of the overall business. Don't see any difference this year. With respect to the margin variance in Q1, what I'd tell you is the biggest movers were actually FX and freight, obviously FX pertaining to the broader USD to RMB exchange rate and just what's happened there over the course of the last 12 months. The second being the freight benefit that we saw and called out in the first quarter of 2017 and the anniversary impact. We did see some impact from off-price in Q1, but I'd tell you that was largely more due to timing than anything else. If you recall, in 2017, most of those volumes were back-half weighted. I think over 80% of that off-price business came in the second half of last year versus this year, where we see it being relatively more balanced. So it was modestly higher in the first quarter, but less of a driver than those other 2 items I mentioned.

是的。因此，就第二部分而言，我想告訴您，與去年相比，我們今年沒有更高的折扣計劃。我們很早就說過，折扣是我們業務的核心部分，因為我們把商品從牆上拿下來並停產，而且它大約佔整體業務的不到 5%。今年看不出有什麼不同。關於第一季度的保證金差異，我要告訴您的是，最大的推動因素實際上是外彙和運費，顯然與更廣泛的美元兌人民幣匯率有關的外匯以及過去 12 個月中發生的情況。第二個是我們在 2017 年第一季度看到並呼籲的貨運效益以及週年紀念日的影響。我們確實在第一季度看到了折扣的一些影響，但我想告訴你，這在很大程度上是由於時機而不是其他原因。如果您還記得，在 2017 年，這些卷中的大部分都是後半加權的。我認為超過 80% 的折扣業務來自去年下半年，與今年相比，我們認為相對更加平衡。因此，第一季度略有上升，但與我提到的其他兩項相比，其驅動力較小。

That's helpful. And then just last from an M&A perspective. I guess, if the right brand presented itself, how much debt would you -- the board be, I guess, comfortable taking on the balance sheet? Maybe give it to us from that perspective or a net debt-to-EBITDA, just so we kind of understand the scope of what you guys could be potentially looking at.

這很有幫助。最後從併購的角度來看。我想，如果出現了正確的品牌，董事會會願意承擔多少債務？也許可以從這個角度或淨債務與 EBITDA 的角度將其提供給我們，這樣我們就可以了解你們可能關注的範圍。

Yes. I'm not sure that we commit to an actual leverage level, Erinn, other than we are comfortable using our balance sheet for the right acquisition. I think the actual details on that really do depend on the nuances of the asset itself and cash flow dynamics of that asset as well as just making sure that we balance the flexibility that we all continue to want to have in terms of investing back in the platform. But it is something that we would be comfortable using for the right acquisition. And also what I'd say is this is a business that has operated at much higher levels of leverage, so certainly not to signal anything but just more to evidence that we have operated at levels higher than the ones that we currently see.

是的。艾瑞恩，我不確定我們是否承諾實際的槓桿水平，除非我們願意利用我們的資產負債表進行正確的收購。我認為，這方面的實際細節確實取決於資產本身的細微差別和該資產的現金流動態，以及確保我們平衡我們所有人在投資回報方面繼續希望擁有的靈活性。平台。但我們會很樂意使用它來進行正確的收購。而且我想說的是，這是一家以更高水平的槓桿運作的企業，所以當然不是為了發出任何信號，而只是更多地證明我們的運作水平高於我們目前看到的水平。

Our next question comes from the line of Linda Bolton-Weiser with D.A. Davidson.

我們的下一個問題來自 Linda Bolton-Weiser 和 D.A.戴維森。

I was just curious if you could comment on how -- as your business has evolved and grown and especially like adding more in skincare, how your social media channel strategy has evolved along with those changes. So has the mix of what you're putting your efforts towards in social media, has that changed over time? And also, maybe you could comment on if you're spending more on traditional advertising because I think, over time, you had intended to maybe up that spending. And is that something that's occurring?

我只是好奇您能否評論一下，隨著您的業務不斷發展和壯大，尤其是在護膚品方面添加更多內容，您的社交媒體渠道策略是如何隨著這些變化而發展的。那麼，您在社交媒體上投入的努力是否隨著時間的推移而發生了變化？而且，也許您可​​以評論一下您是否在傳統廣告上花費更多，因為我認為，隨著時間的推移，您可能打算增加這筆支出。這是正在發生的事情嗎？

Sure. This is Tarang. What I'd say, our strategy in social is really what best engages our consumers. And often, that is our innovation. So as we've innovated more in skincare, you will see more skincare in our social media conversations and what our consumers are talking about. But the overall kind of overarching piece is how are we engaging them in an authentic manner. And I described in the first quarter, our New Orleans Beautyscape activation, one of the key parts of that activation was having a winning team help collaborate and design some new products with us. Those types of collaborations really drive a great deal of engagement as well as build success of us being able to bring those product collaborations to not only into our own direct channels, but also with our national retail partners. And then on the second part...

當然。這是塔朗。我想說的是，我們的社交策略確實是最能吸引消費者的策略。通常，這就是我們的創新。因此，隨著我們在護膚品方面進行更多創新，您將在我們的社交媒體對話和消費者談論的內容中看到更多護膚品。但總體而言，最重要的是我們如何以真實的方式與他們互動。我在第一季度描述了我們的新奧爾良 Beautyscape 激活，該激活的關鍵部分之一是擁有一支獲勝的團隊幫助與我們合作和設計一些新產品。這些類型的合作確實推動了大量的參與，並取得了成功，我們不僅能夠將這些產品合作引入我們自己的直接渠道，而且還能夠與我們的全國零售合作夥伴合作。然後到第二部分...

Yes. Just with respect to advertising spend, our model continues to be highly efficient. And I think we've said for quite some time now that we do want to continue deploying investments back against the brand and for the long-term opportunity that we see. And we continue to do that. But if you take a look at how, it tends to be with methods that still have that efficiency and, most importantly, are authentic and resonate with our core beauty enthusiasts, so we will continue to put additional spending behind the brand. We are a test-and-learn company. So it depends what you mean by traditional as to different vehicles that we might pursue over time, but we're not afraid to test anything. But we continue to be very efficient relative to the legacy brands that spend upwards of 20% to 30% of their sales on traditional advertising.

是的。僅就廣告支出而言，我們的模式仍然非常高效。我想我們已經說過很長一段時間了，我們確實希望繼續對品牌進行投資，並尋求我們看到的長期機會。我們將繼續這樣做。但如果你看看如何，它往往採用仍然具有效率的方法，最重要的是，是真實的並與我們的核心美容愛好者產生共鳴，因此我們將繼續在品牌背後投入額外的支出。我們是一家測試和學習的公司。因此，這取決於您所說的傳統對於我們隨著時間的推移可能追求的不同車輛的含義，但我們不害怕測試任何東西。但相對於將銷售額的 20% 至 30% 以上用於傳統廣告的傳統品牌而言，我們仍然非常高效。

Our next question comes from the line of Mark Astrachan with Stifel.

我們的下一個問題來自 Mark Astrachan 和 Stifel 的對話。

Wanted to ask a bit of a follow-up on the last question. So could you talk about whether there's any change in the trade programs with retailers regarding brand funding, particularly as retailers out there seem to be focusing on introducing more mass brands? In other words, how does e.l.f. differentiate itself in an increasingly competitive market? And do the retailers -- or have the retailers asked for more specific funding within stores to drive incremental shelf space?

想對最後一個問題進行一些跟進。那麼您能否談談與零售商在品牌融資方面的貿易計劃是否有任何變化，特別是當零售商似乎專注於引入更多大眾品牌時？換句話說，e.l.f.在競爭日益激烈的市場中脫穎而出？零售商是否——或者零售商是否要求在商店內提供更具體的資金來增加貨架空間？

Sure, Mark. So one of the great things about our business is we don't have a level of trade spend and trade discounting that you will often find in many legacy brands that have much higher pricing only to deal back to customers. So customers are aware of our formula of high-quality and extraordinary everyday value, and that really makes it much more efficient for us to go to market. And then we also don't have to do the same types of tactics that other brands may have to do given that we do offer an extraordinary value every single day. So often, when you'll see e.l.f. merchandised, it will be merchandised at full retail prices. In terms of shelf space and other mass brands, as we mentioned, we have an incredibly compelling retailer proposition that is not dependent on writing them a check. The 3 things we have that every retailer is interested in is we have the best -- one of the best consumers in the entire category, these young, diverse beauty enthusiasts that they're trying to attract to their category if they're serious about beauty. The second thing that we have that every retailer wants is our innovation and our innovation pipeline and capability. And as we think about our innovation and the number of items we launched and then, more importantly, qualify via our direct channels, such that they don't have to take the risk with e.l.f., makes a huge difference. And the third is our insights and data, which often are translated in terms of our unit productivities, but insights that they're getting through our direct channel, both in the form of the sales data we have over 14 years as well as the over 130,000 reviews and engagement we get from our stores as well as online, end up allowing us to have a pretty, pretty compelling proposition that is not dependent on us stepping up with a big, big check. And then in terms of differentiation, the best way we know how to differentiate, one, for retailers is to collaborate with them in ways that they're most interested in. There's always a healthy tension there because we want retailers to carry our bestsellers or the majority of what they carry are bestsellers. But we're perfectly happy collaborating. I'd give a couple examples and gave one earlier in terms of our Beauty Shield and really collaborating with Target early on our Beauty Shield skincare line, such that they get first dibs at that for the first 6 months. Similarly, we collaborate with Walmart on our Active line. They were very interested in kind of this segment. We're able to collaborate with them. They're able to put a lot of support and differentiate there. So ways of differentiating that are not dependent on kind of price discounting has been our focus, and we have a great weapon both in terms of our consumer profile as well as our innovation capability.

當然，馬克。因此，我們業務的一大優點是，我們沒有一定程度的貿易支出和貿易折扣，而您在許多傳統品牌中經常會發現，這些品牌的定價要高得多，只是為了回饋客戶。因此，客戶了解我們的高品質配方和非凡的日常價值，這確實使我們進入市場的效率大大提高。而且，考慮到我們每天都提供非凡的價值，我們也不必採取其他品牌可能必須採取的相同策略。很多時候，當你看到 e.l.f.商品化時，將以全零售價進行商品化。正如我們所提到的，就貨架空間和其他大眾品牌而言，我們有一個令人難以置信的引人注目的零售商主張，該主張不依賴於給他們寫支票。每個零售商都對我們擁有的三件事感興趣，那就是我們擁有最好的——整個類別中最好的消費者之一，這些年輕、多樣化的美容愛好者，如果他們認真對待的話，他們就會試圖吸引他們進入他們的類別美麗。每個零售商都想要的第二件事是我們的創新以及我們的創新渠道和能力。當我們考慮我們的創新和我們推出的產品數量時，更重要的是，通過我們的直接渠道獲得資格，這樣他們就不必冒 e.l.f. 的風險，這會產生巨大的變化。第三是我們的見解和數據，這些見解和數據通常以我們的單位生產力來轉化，但他們通過我們的直接渠道獲得的見解，既以我們14 年來的銷售數據的形式，也以超過14 年的銷售數據的形式提供。我們從商店和網上獲得了 130,000 條評論和參與度，最終使我們能夠提出一個非常非常引人注目的主張，而不依賴於我們花一大筆錢。然後就差異化而言，我們知道如何差異化的最佳方式，一，對於零售商來說，就是以他們最感興趣的方式與他們合作。那裡總是存在一種健康的緊張關係，因為我們希望零售商銷售我們的暢銷品，或者他們銷售的大部分商品都是暢銷品。但我們的合作非常愉快。我想舉幾個例子，之前舉過一個關於我們的Beauty Shield 的例子，並且在我們的Beauty Shield 護膚品系列上很早就與Target 進行了真正的合作，這樣他們就可以在前6 個月內獲得優先權。同樣，我們與沃爾瑪在 Active 系列上進行合作。他們對這個部分非常感興趣。我們能夠與他們合作。他們能夠在那裡提供大量支持並實現差異化。因此，不依賴於價格折扣的差異化方式一直是我們的重點，而且我們在消費者概況和創新能力方面都擁有強大的武器。

Okay. And maybe just asking it kind of a different way. Has there been any change in the markup of the products at retail, meaning from what you're selling the product to the retailer for? And I guess, I wondered that, too, in the context of the AUR focus, where selling prices are going up. And I say that in part in the context of uniquely where your product is positioned price-wise. It's less expensive than most other products within the category on shelves. So the retailer presumably makes less dollar profit per turn or sale than they would some other items, so you have to sell more. And to Dara's point earlier, volumes have been a little bit weaker. So how do you make that up from a retailer -- or if you're a retailer?

好的。也許只是用一種不同的方式來問。零售產品的加價（即您向零售商出售產品的目的）是否有任何變化？我想，我也想知道，在 AUR 焦點的背景下，售價正在上漲。我這樣說的部分原因是你的產品在價格方面的定位獨特。它比貨架上同類產品中的大多數其他產品便宜。因此，零售商每轉或銷售的利潤可能比其他商品要少，所以你必須賣出更多。正如 Dara 早些時候所說，銷量略有下降。那麼，如果您是零售商，您如何從零售商那裡彌補這一點呢？

Yes. We make it up a couple of different ways. We turn so much faster than just about any other brand. As I talked about our unit productivity per foot being nearly 3x the top 3 brands, the GMROIs that retailers have on us are incredibly attractive, mainly because of that unit productivity. So we're willing to trade off volume and higher average unit retails between those 2 things to be able to continue to drive kind of the productivity numbers that we have been able to. So it's different than the go-to-market of many of the legacy brands out there that are already very high priced and where you really do have to -- we have this luxury of being able to really drive AUR and given kind of the lead that we have within that. And our margins within retail is that's their choice in terms of where they price brands. I think the overall margin structure's pretty comparable, I think, between -- most of them set it at their category level. And so given the movement that we have and the efficiency we have in terms of penetrating their supply chains, I think our overall profitability model for retailers is also quite strong.

是的。我們用幾種不同的方式來實現。我們的轉變速度比任何其他品牌都快得多。正如我所說，我們每英尺的單位生產率幾乎是前 3 個品牌的 3 倍，零售商對我們的 GMROI 非常有吸引力，主要是因為單位生產率。因此，我們願意在這兩件事之間權衡銷量和更高的平均單位零售量，以便能夠繼續推動我們已經能夠實現的生產力數字。因此，這與許多傳統品牌進入市場的方式不同，這些品牌的價格已經非常高，而且你確實必須這樣做——我們擁有能夠真正推動 AUR 並獲得領先地位的奢侈。我們在其中擁有的。我們在零售業的利潤是他們對品牌定價的選擇。我認為總體利潤結構相當可比，我認為，他們中的大多數人都將其設置在他們的類別級別。因此，考慮到我們在滲透供應鏈方面的行動和效率，我認為我們為零售商提供的整體盈利模式也相當強勁。

Ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the call back to management for closing remarks.

女士們、先生們，問答環節已經結束，我想將電話轉回給管理層，讓他們作結束語。

Great. This is Tarang. Thanks again for joining us. We look forward to seeing you at the William Blair and Jefferies conferences in June and discussing our Q2 results in August. Thanks, everyone.

偉大的。這是塔朗。再次感謝您加入我們。我們期待在 6 月份的 William Blair 和 Jefferies 會議上見到您，並在 8 月份討論我們的第二季度業績。感謝大家。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。