elf Beauty Inc (ELF) 2024 Q1 法說會逐字稿

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Thank you for joining us today to discuss e.l.f. Beauty's First Quarter fiscal '24 Results. I'm KC Katten, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.

感謝您今天加入我們討論 e.l.f. Beauty'24 財年第一季度業績。我是 KC Katten，企業發展和投資者關係副總裁。今天與我在一起的有董事長兼首席執行官塔朗·阿明 (Tarang Amin)；以及高級副總裁兼首席財務官 Mandy Fields。

We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you will find factors that could cause actual results to differ materially from these forward-looking statements.

我們鼓勵您收聽我們的網絡廣播演示，以獲得最佳觀看體驗，您可以在我們的網站 Investor.elfbeauty.com 上訪問該演示。由於我們今天的許多言論都包含前瞻性陳述，請參閱我們向美國證券交易委員會提交的收益報告和報告，您會發現可能導致實際結果與這些前瞻性陳述存在重大差異的因素。

In addition, the company's presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure.

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。我們的收益報告包含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差異的調節。

With that, let me turn the webcast over to Tarang.

接下來，讓我將網絡廣播轉交給塔朗。

Thank you, KC, and good afternoon, everyone. Today, we will discuss the drivers of our Q1 results and our raised outlook for fiscal '24. I want to start by recognizing the e.l.f. Beauty team. We're off to an incredibly strong start this fiscal year, delivering Q1 results well ahead of expectations.

謝謝你，KC，大家下午好。今天，我們將討論第一季度業績的驅動因素以及我們上調的 24 財年前景。我想從認識 e.l.f 開始。美容團隊。我們本財年有一個令人難以置信的強勁開局，第一季度的業績遠遠超出預期。

Q1 marked our 18th consecutive quarter of net sales growth, putting e.l.f. Beauty in a select group of consistent, high-growth consumer companies. We are 1 of only 5 public consumer companies out of 274 total that has grown for 18 straight quarters and averaged at least 20% sales growth per quarter. In Q1, we grew net sales by 76%, increased gross margin by 280 basis points and delivered $74 million in adjusted EBITDA, up 135%.

第一季度標誌著我們連續第 18 個季度實現淨銷售額增長，使 e.l.f.美容是一群精選的穩定、高增長的消費公司。在 274 家上市消費公司中，我們是僅有的 5 家連續 18 個季度實現增長且平均每季度銷售額增長至少 20% 的公司之一。第一季度，我們的淨銷售額增長了 76%，毛利率提高了 280 個基點，調整後 EBITDA 增長了 7400 萬美元，增長了 135%。

Last quarter, we spoke about the 3 areas with significant runway for growth in color cosmetics, skin care and internationally. Let me update you on our progress in Q1. In color cosmetics, we continue to outperform category trends. In Q1, e.l.f. grew 48% in tracked channels, well above category growth of 6%. We increased our market share by 260 basis points. Out of nearly 800 cosmetics brands tracked by Nielsen, e.l.f. is the only brand to gain share for 18 consecutive quarters. As great as the share growth has been, we see an opportunity to double our market share over the next few years. Nationally, e.l.f. is the #3 brand today with approximately 9.5% share.

上個季度，我們談到了彩妝、皮膚護理和國際化方面具有顯著增長潛力的 3 個領域。讓我向您介紹第一季度的最新進展。在彩妝領域，我們繼續跑贏品類趨勢。在第一季度，e.l.f.跟踪渠道增長了 48%，遠高於 6% 的品類增長。我們的市場份額增加了 260 個基點。在尼爾森追踪的近 800 個化妝品品牌中，e.l.f.是唯一一個連續18個季度份額增長的品牌。儘管份額增長巨大，但我們看到了未來幾年市場份額翻倍的機會。在全國范圍內，e.l.f.是目前排名第三的品牌，市場份額約為 9.5%。

In Target, our longest-standing national retail customer, we are already the #1 brand with nearly 18% share. We are focused on replicating our success at Target across other key retailers. In skin care, we also continued to outperform the category. In Q1, e.l.f. SKIN grew 127% in tracked channels, well above category growth of 10% and was the fastest-growing among the top 20 skin care brands. We grew our market share by 75 basis points. e.l.f. SKIN is the #14 brand today with a 1.5% share and a significant runway with the #1 brand holding over 15% share.

在我們歷史最悠久的全國零售客戶塔吉特 (Target) 中，我們已經是排名第一的品牌，擁有近 18% 的份額。我們致力於在其他主要零售商中復制 Target 的成功。在護膚品方面，我們的表現也繼續優於同類產品。在第一季度，e.l.f. SKIN 在跟踪渠道中增長了 127%，遠高於 10% 的品類增長，是前 20 名護膚品牌中增長最快的。我們的市場份額增長了 75 個基點。 e.l.f. SKIN 是目前排名第 14 的品牌，佔有 1.5% 的份額，並且與排名第一的品牌保持著超過 15% 的份額。

Looking outside the U.S., we grew our international net sales 79% in Q1, fueled by strength in both the U.K. and Canada. e.l.f pays category growth by nearly 10x in the U.K. by over 3x in Canada, fueling market share gains in each. e.l.f. is the #6 brand in each of these markets with about a 5% share as compared to the #1 brand which has over 17% share. We continue to build our international team as we aim to expand our brands globally. Across categories and geographies, the 3 fundamental drivers of our business remain the same. Our value proposition, powerhouse innovation and disruptive marketing engine.

展望美國以外的地區，在英國和加拿大業務強勁的推動下，我們第一季度的國際淨銷售額增長了 79%。 e.l.f 在英國的支付類別增長了近 10 倍，在加拿大增長了超過 3 倍，推動了各自市場份額的增長。 e.l.f.是每個市場中排名第六的品牌，佔有約 5% 的份額，而排名第一的品牌則擁有超過 17% 的份額。我們繼續建立我們的國際團隊，以在全球範圍內拓展我們的品牌。在各個類別和地區中，我們業務的三個基本驅動力保持不變。我們的價值主張、強大的創新和顛覆性的營銷引擎。

Let me walk through how each underpinned our strength in Q1. First, we're known for our value proposition. We make the best of beauty accessible to every eye, lip, face and skin concern. We have a unique ability to deliver Holy Grail products taking inspiration from our community and the best products in prestige and bringing them to market, delivering high quality at an extraordinary value.

讓我來介紹一下每個人如何支撐我們在第一季度的實力。首先，我們以價值主張而聞名。我們為每一個眼睛、嘴唇、面部和皮膚問題提供最好的美容效果。我們擁有獨特的能力來提供聖杯產品，從我們的社區和享有盛譽的最佳產品中汲取靈感，並將其推向市場，以非凡的價值提供高品質。

The average price point for e.l.f. is a little over $6 today as compared to over $9 for the legacy mass cosmetics brands and over $20 for prestige brands. Unlike these higher-priced brands, our pricing strategy focuses on everyday value instead of broad-based promotions. We believe our value proposition creates accessibility in the category. Allowing more consumers to enjoy the best of beauty. The second driver of our performance is our powerhouse innovation. e.l.f. has the #1 or #2 position across 16 segments of color cosmetics. Which collectively make up over 75% of e.l.f. Cosmetics sales. We delivered the strongest sales growth and share gains in these segments in Q1.

e.l.f. 的平均價格點今天的價格略高於 6 美元，而傳統大眾化妝品品牌的價格超過 9 美元，知名品牌的價格超過 20 美元。與這些價格較高的品牌不同，我們的定價策略側重於日常價值，而不是廣泛的促銷活動。我們相信我們的價值主張創造了該類別的可及性。讓更多的消費者享受到最好的美麗。我們業績的第二個驅動力是我們強大的創新。 e.l.f.在 16 個彩妝細分市場中佔據第一或第二的位置。這些合計佔 e.l.f. 的 75% 以上。化妝品銷售。第一季度，我們在這些領域實現了最強勁的銷售增長和份額增長。

Our innovation approach is to build growing product franchises instead of one-and-done launches. Our 4 largest franchises, Camo, Putty, Halo Glow and Power Grip, have grown year after year. As we launch new innovation within each, the entire franchise has grown. In Q1, we continue to fuel the Putty franchise with the launch of our liquid Poreless Putty Primer, priced at an incredible value of $10 compared to a prestige item at $54.

我們的創新方法是建立不斷增長的產品特許經營權，而不是一勞永逸的發布。我們最大的 4 個系列產品：Camo、Putty、Halo Glow 和 Power Grip，逐年增長。隨著我們在每個項目中推出新的創新，整個特許經營權也得到了發展。在第一季度，我們繼續推出液體 Poreless Putty Primer，為 Putty 特許經營提供動力，其售價為 10 美元，而高檔產品的價格為 54 美元。

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We also launched our Putty Color-Correcting Eye Brightener, extending the Putty franchise into the eye category for the first time. We're using this approach to disrupt the skin care category as well. Our latest untouchable franchise is a great example. In January, we launched Suntouchable Whoa Glow SPF 30, priced at an incredible value of $14 compared to the prestige item at $38. Whoa Glow quickly rose to one of our best-selling skin care SKUs. We expanded this untouchable franchise further in Q1 with the launch of our invisible sunscreen SPF 35 and our All Set for Sun SPF 45.

我們還推出了 Putty 色彩校正眼部提亮劑，首次將 Putty 專營權擴展到眼部類別。我們也正在使用這種方法來顛覆皮膚護理類別。我們最新的《賤民》系列就是一個很好的例子。一月份，我們推出了 Suntouchable Whoa Glow SPF 30，與 38 美元的高端產品相比，價格為 14 美元，令人難以置信。 Whoa Glow 很快成為我們最暢銷的護膚品 SKU 之一。我們在第一季度進一步擴大了這一不可觸碰的特許經營權，推出了隱形防曬霜 SPF 35 和 All Set for Sun SPF 45。

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We're excited about how our community is responding with the Suntouchable franchise quickly rising to our skin care best sellers. The third driver of our performance is our ability to attract and engage consumers with our disruptive marketing engine. We continue to generate buzz-worthy moments for our community. And reach new audiences with our collaborations.

我們對我們的社區做出的反應感到興奮，Suntouchable 特許經營權迅速成為我們的護膚品暢銷書。我們業績的第三個驅動因素是我們利用顛覆性營銷引擎吸引和吸引消費者的能力。我們繼續為我們的社區創造值得關注的時刻。並通過我們的合作吸引新的受眾。

In June, we launched a limited edition collaboration with beauty content creator, Mikayla Nogueira in honor of her wedding. With over 17 million followers across her social platforms, Mikayla has been named one of the top beauty influencers. Our limited edition lip duo collaboration sold out in 18 minutes on elfcosmetics.com, our fastest ever sellout of a collection. We also saw our highest ever spike in site traffic during the launch hour and nearly 75% of purchasers are new to e.l.f., our highest new purchase array on an innovation product in the last 2 years.

6 月，我們與美容內容創作者 Mikayla Nogueira 推出了限量版合作，以紀念她的婚禮。 Mikayla 在她的社交平台上擁有超過 1700 萬粉絲，被評為頂級美容影響者之一。我們的限量版雙唇合作款在 elfcosmetics.com 上 18 分鐘內售罄，這是我們有史以來最快售罄的系列。我們還看到，在發布期間，網站流量出現了有史以來最高的峰值，並且近 75% 的購買者是 e.l.f. 的新購買者，這是我們過去 2 年來創新產品上最高的新購買量。

This quarter, we lean further into entertainment and short-form digital content with the release of 2 new series across our social channels, Makeup Over Makeup and Vanity Table Talk. The first episode of Vanity Table Talk feature cultural icon and award-winning actress Jennifer Coolidge, who inspired the series with her comedic quotes while filming our chart topping commercial for the Big Game earlier this year.

本季度，我們進一步向娛樂和短片數字內容傾斜，在社交渠道上發布了 2 個新系列：《Makeup Over Makeup》和《Vanity Table Talk》。 《名利場餐桌談話》的第一集由文化偶像、獲獎女演員詹妮弗·柯立芝主演，她在今年早些時候為 Big Game 拍攝我們的排行榜冠軍廣告時，用她的喜劇名言為該劇提供了靈感。

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We had celebrity media buzzing and viewers captivated, collectively earning over 20 billion impressions from our 2 new digital content series. I'm proud how we continue to lead with purpose as we strive to create a different kind of beauty company. We recently launched a new purpose-driven series, named Show Your(s)e.l.f., featuring role models who have overcome adversity to bring more positivity, inclusivity and accessibility to the world. The series kicked off with Anastasia Pagonis, a 19-year-old blind Paralympic swimmer and world record holder, who proves that anything is e.l.f.ing possible even in the face of the toughest obstacles.

名人媒體對我們熱議，觀眾著迷，我們的 2 個新數字內容系列總共獲得了超過 200 億次展示。我很自豪我們能夠繼續有目標地領導，努力創建一家不同類型的美容公司。我們最近推出了一個新的目標驅動系列，名為“展示你的自我”，以克服逆境為世界帶來更多積極性、包容性和可及性的榜樣為特色。該系列賽由 19 歲盲人殘奧會游泳運動員、世界紀錄保持者阿納斯塔西婭·帕格尼斯 (Anastasia Pagonis) 拉開帷幕，她證明了即使面對最艱難的障礙，一切皆有可能。

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To support Anastasia's hope to help lift others, we do it to one of our favorite organizations, The Hidden Opponent, a nonprofit that raises awareness for student athlete mental health. This is part of e.l.f. Beauty's commitment to donate annually 2% of our prior year profits to drive positive impact in our communities. Before I turn the call over to Mandy, I want to spend a moment to talk about our competitive moat.

為了支持阿納斯塔西婭幫助他人進步的希望，我們向我們最喜歡的組織之一“隱藏的對手”提供了幫助，這是一個提高學生運動員心理健康意識的非營利組織。這是 e.l.f 的一部分。 Beauty 承諾每年捐贈上一年利潤的 2%，以推動對社區的積極影響。在將電話轉給曼迪之前，我想花點時間談談我們的競爭護城河。

While beauty is a category of comparatively low barriers of entry, very few brands have been able to scale. For context, of over 1,800 cosmetics and skin care brands tracked by Nielsen. Only 58 have surpassed $25 million in annual retail sales over the past 3 years, and only 28 are greater than $100 million. e.l.f. has been one of the few brands able to scale through the areas of advantage we bring to the table.

雖然美容是一個進入門檻相對較低的類別，但很少有品牌能夠擴大規模。作為背景，尼爾森追踪了 1,800 多個化妝品和護膚品品牌。過去 3 年，年零售額超過 2500 萬美元的企業只有 58 家，超過 1 億美元的企業只有 28 家。 e.l.f.是少數能夠通過我們帶來的優勢領域進行擴展的品牌之一。

With e.l.f. consumers can have premium quality beauty products at accessible price points with broad appeal that are vegan, cruelty-free, clean and Fair Trade Certified. These superpowers are underpinned by several other areas of competitive advantage. Our supply chain offers the best combination of cost, quality and speed in our industry. and is well integrated with our innovation engine to launch franchise-building Holy Grails. Our engagement model gives us the ability to activate millions of consumers against this innovation. And perhaps most importantly, we have a talented high-performance team and culture. While other beauty brands can try to replicate some of these, we believe the unique combination of our areas of advantage form our competitive moat. And fuel our ability to win in fiscal 2024 and beyond.

與 e.l.f.消費者可以以實惠的價格獲得具有廣泛吸引力的優質美容產品，這些產品是純素、無殘忍、清潔且經過公平貿易認證的。這些超級大國以其他幾個領域的競爭優勢為基礎。我們的供應鏈提供了行業內成本、質量和速度的最佳組合。並與我們的創新引擎完美結合，推出特許經營建設聖杯。我們的參與模式使我們能夠激發數百萬消費者反對這項創新。也許最重要的是，我們擁有一支才華橫溢的高績效團隊和文化。雖然其他美容品牌可以嘗試複製其中的一些產品，但我們相信我們優勢領域的獨特組合形成了我們的競爭護城河。並增強我們在 2024 財年及以後取得勝利的能力。

I'll now turn the call over to Mandy.

我現在將電話轉給曼迪。

Thank you, Tarang. I am pleased to share the highlights of our first quarter results as well as our raised outlook for fiscal '24. Our first quarter results were outstanding. Q1 net sales grew 76% year-over-year, driven by broad-based strength across national and international retailers as well as digital commerce. Higher unit volume contributed approximately 56 percentage points to net sales growth, with mix adding approximately 20 percentage points to growth. We saw better-than-expected unit velocities in Q1. Supported by robust consumer response to both our spring innovation and core products. Shipments exceeded consumption this quarter as we started to recover on some out-of-stock items.

謝謝你，塔朗。我很高興與大家分享我們第一季度業績的亮點以及我們上調的 24 財年展望。我們第一季度的業績非常出色。在國內和國際零售商以及數字商務的廣泛實力推動下，第一季度淨銷售額同比增長 76%。單位銷量的增加為淨銷售額增長貢獻了約 56 個百分點，混合銷售則為增長貢獻了約 20 個百分點。我們看到第一季度的單位速度好於預期。消費者對我們的彈簧創新和核心產品的強烈反應提供了支持。隨著我們開始恢復一些缺貨商品，本季度的發貨量超過了消耗量。

Our digitally led strategy continues to serve us well. Q1 digital consumption trends were up triple digits year-over-year. Digital channels drove 18% of our total consumption in Q1, as compared to 14% a year ago. We see opportunity to increase our digital penetration, particularly as we further enhance our Beauty Squad Loyalty Program. Beauty Squad now has over 3.9 million members with enrollment growing over 25% year-over-year. Our loyalty members drive almost 80% of our sales on elfcosmetics.com and continue to have higher average order values, purchase more frequently, have stronger retention rates and are a rich source of first-party data. Q1 gross margin of 71% was up approximately 280 basis points compared to prior year. We saw gross margin benefits from favorable FX rates. Margin accretive mix and cost savings, lower inventory adjustments and improved transportation costs, which more than offset costs related to retailer activity and space expansion.

我們的數字主導戰略繼續為我們提供良好服務。第一季度數字消費趨勢同比增長三位數。第一季度，數字渠道占我們總消費的 18%，而去年同期為 14%。我們看到了提高數字滲透率的機會，特別是當我們進一步增強我們的 Beauty Squad 忠誠度計劃時。 Beauty Squad 目前擁有超過 390 萬名會員，註冊人數同比增長超過 25%。我們的忠誠會員推動了 elfcosmetics.com 上近 80% 的銷售額，並且繼續擁有更高的平均訂單價值、更頻繁的購買、更高的保留率，並且是豐富的第一方數據來源。第一季度毛利率為 71%，比去年同期增長約 280 個基點。我們看到有利的匯率帶來了毛利率的提高。利潤增長組合和成本節約、庫存調整減少和運輸成本改善，這足以抵消與零售商活動和空間擴張相關的成本。

On an adjusted basis, SG&A as a percentage of sales was 39% in Q1 compared to 45% last year. We drove significant leverage in non-marketing SG&A expenses primarily as a result of our strong top line trends. Marketing and digital investment for the quarter was 16% of net sales and in line with last year. This was lower than expected on a percentage basis given our significant top line outperformance. We continue to expect marketing and digital investment to be approximately 22% to 24% of net sales in fiscal '24.

經調整後，第一季度銷售、管理及行政費用 (SG&A) 佔銷售額的百分比為 39%，而去年為 45%。我們在非營銷 SG&A 費用方面發揮了巨大的槓桿作用，這主要是由於我們強勁的營收趨勢。該季度的營銷和數字投資占淨銷售額的 16%，與去年持平。鑑於我們的營收表現顯著出色，按百分比計算，這一數字低於預期。我們仍然預計營銷和數字投資將佔 24 財年淨銷售額的約 22% 至 24%。

Q1 adjusted EBITDA was $74 million, up 135% versus last year, and adjusted EBITDA margin was approximately 34% of net sales. Adjusted net income was $63 million or $1.10 per diluted share compared to $21 million or $0.39 per diluted share a year ago. The increase across profitability metrics was driven by our strong net sales growth, gross margin expansion and leverage in our non-marketing SG&A expenses.

第一季度調整後 EBITDA 為 7400 萬美元，比去年增長 135%，調整後 EBITDA 利潤率約為淨銷售額的 34%。調整後淨利潤為 6300 萬美元，即稀釋後每股收益 1.10 美元，而一年前為 2100 萬美元，即稀釋後每股收益 0.39 美元。盈利指標的增長是由我們強勁的淨銷售額增長、毛利率擴張以及非營銷銷售、一般行政費用的槓桿推動的。

Moving to the balance sheet and cash flow. Our balance sheet remains strong, and we believe positions us well to execute our long-term growth plans. We ended the quarter with approximately $143 million in cash on hand compared to a cash balance of $72 million a year ago. Our ending inventory balance was $98 million, in line with our expectations and up from $70 million a year ago. As a reminder, last quarter, we spoke about plans to build back our inventory levels through fiscal '24 to support the strong consumer demand we're seeing.

轉向資產負債表和現金流量。我們的資產負債表依然強勁，我們相信我們能夠很好地執行長期增長計劃。本季度結束時，我們手頭現金約為 1.43 億美元，而一年前的現金餘額為 7200 萬美元。我們的期末庫存餘額為 9800 萬美元，符合我們的預期，高於一年前的 7000 萬美元。提醒一下，上個季度，我們談到了在 24 財年之前恢復庫存水平的計劃，以支持我們所看到的強勁消費者需求。

I'm also pleased with the approximately $23 million in free cash flow generated in Q1. We ended the quarter with a net cash position and less than 1x leverage in terms of total debt to adjusted EBITDA. We expect our cash priorities for the year to remain on investing behind our growth initiatives and supporting strategic extensions. Some of the initiatives we're focused on this year include investing in our people and infrastructure, our ERP transition to SAP as well as increased working capital and distribution capacity to support strong consumer demand.

我還對第一季度產生的約 2300 萬美元的自由現金流感到滿意。本季度末，我們擁有淨現金頭寸，總債務與調整後 EBITDA 的槓桿率低於 1 倍。我們預計今年的現金重點仍然是投資於我們的增長計劃和支持戰略擴展。我們今年重點關注的一些舉措包括投資於我們的人員和基礎設施、我們的 ERP 向 SAP 的過渡以及增加營運資金和分銷能力以支持強勁的消費者需求。

Now let's turn to our raised outlook for fiscal '24. For the full year, we now expect net sales growth of approximately 37% to 39%. Up from 22% to 24% previously. Adjusted EBITDA between $171 million to $174 million, up from $144.5 million to $147.5 million previously; adjusted net income between $125 million to $127 million, up from $98.5 million to $100.5 million previously. And adjusted EPS of $2.19 to $2.22 per diluted share, up from $1.73 to $1.76 previously. We expect our fiscal '24 adjusted tax rate to be approximately 17% to 18% and a fully diluted average share count of approximately 57 million shares.

現在讓我們轉向我們上調的 24 財年展望。我們目前預計全年淨銷售額增長約 37% 至 39%。從之前的 22% 上升到 24%。調整後的 EBITDA 在 1.71 億美元至 1.74 億美元之間，高於之前的 1.445 億美元至 1.475 億美元；調整後的淨利潤在 1.25 億美元至 1.27 億美元之間，高於之前的 9850 萬美元至 1.005 億美元。調整後每股攤薄每股收益為 2.19 美元至 2.22 美元，高於之前的 1.73 美元至 1.76 美元。我們預計 24 財年調整後的稅率約為 17% 至 18%，完全稀釋後的平均股數約為 5700 萬股。

Let me provide you with additional color on our planning assumptions for fiscal '24. Starting with the top line. Our raised outlook reflects the outperformance in Q1 relative to our expectations as well as an improved outlook for the balance of the year as our consumption remains strong, both in tracked and untracked channels.

讓我為您提供有關我們 24 財年規劃假設的更多信息。從頂線開始。我們上調的前景反映了第一季度的表現優於我們的預期，以及由於我們的跟踪和非跟踪渠道的消費仍然強勁，今年剩餘時間的前景有所改善。

Turning to gross margin. In fiscal '24, we now expect our gross margin to be up approximately 150 basis points year-over-year as compared to our expectation for up 100 basis points previously. The improved outlook is largely a result of our outperformance in Q1, aided by lower inventory adjustments in the quarter and favorable mix. In terms of the key puts and takes for the year, we continue to expect gross margin to benefit from lower transportation costs, favorable FX rates, margin accretive mix and cost savings which are expected to more than offset costs related to retailer activity and space expansion.

轉向毛利率。在 24 財年，我們現在預計毛利率將同比增長約 150 個基點，而之前的預期為增長 100 個基點。前景的改善主要是由於我們在第一季度的出色表現，得益於該季度較低的庫存調整和有利的組合。就今年的關鍵看跌期權和看跌期權而言，我們繼續預計毛利率將受益於較低的運輸成本、有利的匯率、利潤增值組合和成本節約，預計將超過與零售商活動和空間擴張相關的成本。

Turning now to adjusted EBITDA. Our outlook now implies adjusted EBITDA growth of approximately 46% to 49% versus prior year, up from 24% to 26% previously. And on top of the strong 56% growth we delivered in fiscal '23. Our outlook also implies adjusted EBITDA margin leverage of approximately 150 basis points year-over-year as compared to approximately 30 basis points previously. The improved outlook is based on expected strong net sales growth, gross margin expansion and leverage in our non-marketing SG&A expenses. We are quite pleased to be in a position to meaningfully raise both our sales and profitability outlook this early in our fiscal year.

現在轉向調整後的 EBITDA。我們現在的展望意味著調整後的 EBITDA 較上年增長約 46% 至 49%，高於之前的 24% 至 26%。除了我們在 23 財年實現了 56% 的強勁增長之外。我們的展望還意味著調整後的 EBITDA 利潤率同比約為 150 個基點，而之前約為 30 個基點。前景的改善是基於預期強勁的淨銷售增長、毛利率擴張以及非營銷銷售、一般管理費用的槓桿作用。我們很高興能夠在本財年初期有意義地提高我們的銷售額和盈利前景。

In summary, we are off to a strong start in fiscal '24. Our performance over the last 18 quarters, both on an absolute basis and relative to the category, demonstrates that we have a winning strategy. As great as these results have been, we're even more excited for the future. The significant white space we see across color cosmetics, skin care and internationally, gives us confidence that we are still in the early innings of unlocking the full potential for our brands.

總之，我們在 24 財年有了一個良好的開端。我們過去 18 個季度的表現，無論是絕對基礎還是相對於類別的表現，都表明我們擁有製勝策略。儘管這些成果非常出色，但我們對未來更加興奮。我們在彩妝、護膚品和國際市場上看到的巨大空白讓我們相信，我們仍處於釋放品牌全部潛力的早期階段。

With that, operator, you may now open the call to questions.

接線員，您現在可以開始提問。

(Operator Instructions) Our first question here will come from Dara Mohsenian with Morgan Stanley.

（操作員說明）我們的第一個問題將來自摩根士丹利的 Dara Mohsenian。

So obviously, another really strong quarter in terms of revenue growth in Q1. You beat your soft guidance or consensus by about $30 million, but you're raising the full year an even greater $85 million. So can you just give us a bit more detail on your confidence in underlying momentum in the business coming out of Q1 and what that portends in the balance of the year. I know Mandy touched on it, but a bit more detail would be helpful there. And then specifically, maybe just given the strength in Q1, can you help frame how we should think about fiscal Q2 relative to fiscal Q1?

顯然，第一季度的收入增長又是一個非常強勁的季度。您超出了軟指導或共識約 3000 萬美元，但全年籌集的資金甚至更多了 8500 萬美元。那麼，您能否更詳細地介紹一下您對第一季度業務潛在勢頭的信心以及這對今年剩餘時間的預示。我知道曼迪談到了這一點，但更多細節會有所幫助。然後具體來說，也許只是考慮到第一季度的實力，您能否幫助我們框架一下相對於第一財季我們應該如何看待第二財季？

All right. So let's start with your first question on raising the full year guidance and our confidence in that. So we feel that we're in a great position to raise guidance. As the first quarter out of the year, raising the top end of our guidance to 39% on the full year and 49% from an adjusted EBITDA standpoint. So really underpinned by the momentum that we continue to see in the business, the fundamentals remain strong. And really, we talked the key drivers of our business, our value proposition powerhouse innovation and our ability to engage our consumers that continues to drive our business forward. And so we feel really great about our full year guidance and our ability to continue to see that momentum move forward.

好的。因此，讓我們從您提出的第一個問題開始，即提高全年指引以及我們對此的信心。因此，我們認為我們處於提出指導意見的有利位置。作為今年第一季度，我們將全年指導上限提高至 39%，從調整後 EBITDA 的角度來看，將上限提高至 49%。因此，在我們繼續看到的業務勢頭的支撐下，基本面依然強勁。事實上，我們討論了我們業務的關鍵驅動因素、我們的價值主張強大的創新以及我們吸引消費者的能力，從而繼續推動我們的業務向前發展。因此，我們對全年指導以及繼續推動這一勢頭向前發展的能力感到非常滿意。

In terms of Q2 specifically and framing around that. So if I look at our Nielsen tracked channel data, and I know you all get that information. Over the last 12 weeks, we have tracked about 60% growth. And so I would say that's probably a fair place to anchor for Q2, if we were going to kind of try to frame that a little bit for you.

具體而言，就第二季度及其周圍的框架而言。因此，如果我查看尼爾森跟踪的渠道數據，我知道你們都會得到這些信息。在過去 12 週內，我們的增長率約為 60%。所以我想說，如果我們想嘗試為您構建一點框架，那麼這可能是第二季度的一個公平定位。

Our next question today will come from Olivia Tong with Raymond James.

今天我們的下一個問題將來自 Olivia Tong 和 Raymond James。

Great. Congrats as well. I want to talk a little bit about some of the newer categories that you're entering and expanding in like eye and lip versus the face. Can you talk about the margin structure in those? And then also just the ACV that you have in the newer categories versus what you have as we think about the opportunity to unlock potentially even more incremental shelf space?

偉大的。也恭喜你。我想談談您正在進入和擴展的一些新類別，例如眼睛和嘴唇與臉部。您能談談其中的利潤結構嗎？然後，當我們考慮解鎖潛在更多增量貨架空間的機會時，您在新類別中擁有的 ACV 與您擁有的產品相比？

So Olivia, we're seeing strength across our entire business. So there's 16 segments where we have the #1 or #2 position. Those continue to grow extremely strongly. And we also feel good about some of the areas that we're expanding in. You talked about our lip innovation, our skin care business in the quarter. I think in tracked channels was up 127% relative to the category. It was up 6%. So all of this leads to the strong share gains we talked about. I think year-over-year, we picked up 260 basis points of share.

奧利維亞，我們看到了整個業務的實力。因此，我們有 16 個段具有 #1 或 #2 位置。這些繼續極其強勁地增長。我們也對我們正在擴張的一些領域感到滿意。您談到了我們本季度的唇部創新和皮膚護理業務。我認為在跟踪渠道中相對於該類別增長了 127%。上漲了 6%。因此，所有這些都導致​​了我們談到的強勁的股票收益。我認為與去年同期相比，我們的份額上升了 260 個基點。

And then in terms of the margin structure, we target all of our innovation to be margin accretive to our overall margin structure as a company. And there isn't really much of a difference between some of those categories, and it's actually been one of the ways we've both improved our margins, but also raised our average unit retails. We've primarily done that through innovation mix, products like in our Whoa Glow, Suntouchables at $14, still an incredible value relative to the prestige item at $38 that certainly mixes up the brand.

然後就利潤結構而言，我們所有的創新目標都是提高公司整體利潤結構的利潤率。其中一些類別之間並沒有太大區別，這實際上是我們既提高利潤率又提高平均單位零售量的方式之一。我們主要通過創新組合來做到這一點，像我們的 Whoa Glow、Suntouchables 等售價 14 美元的產品，相對於 38 美元的名牌產品來說，仍然具有令人難以置信的價值，這肯定會混淆該品牌。

Our next question here will come from Linda Bolton-Weiser with D.A. Davidson.

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

Yes. I was just curious about your marketing ROI. As you get bigger, you continue to spend more. So I'm curious, are you seeing that plateauing? Or is the ROI still going up? And secondly, I was wondering if you would adopt the notion of spending ahead of sales growth. Because you keep beating so much on sales expectations that you never really reach your intended ratio. So would you consider spending ahead, anticipating the growth if your ROIs are still really strong.

是的。我只是對你們的營銷投資回報率感到好奇。當你變得更大時，你會繼續花更多的錢。所以我很好奇，你看到這種停滯狀態了嗎？或者投資回報率還在上升嗎？其次，我想知道您是否會採用先於銷售增長進行支出的概念。因為你總是超出銷售預期，以至於你永遠無法真正達到預期的比率。因此，如果您的投資回報率仍然非常強勁，您是否會考慮提前支出並預期增長。

Yes. Linda, this is Tarang. We continue to see exceptional ROIs in our marketing investment. It's one of the big drivers of our business, along with our innovation. And we feel really great about it. And then in terms of the spending rate, first quarter marketing rate came in lighter than what we would have wanted. It was 16% of net sales. And that really just has to do with the over delivery of the top line in the first quarter. So we plan to catch that up for the balance of the year. We're still guiding towards 22%, 24% of net sales and marketing, primarily because it's working and we see plenty of opportunity.

是的。琳達，這是塔朗。我們的營銷投資繼續獲得卓越的投資回報率。它和我們的創新一樣，是我們業務的重要驅動力之一。我們對此感覺非常好。然後就支出率而言，第一季度的營銷率低於我們的預期。占淨銷售額的 16%。這確實與第一季度營收的超額交付有關。因此，我們計劃在今年剩餘時間內趕上這一目標。我們仍然指導淨銷售額和營銷的 22%、24%，主要是因為它正在發揮作用，而且我們看到了很多機會。

Our next question will come from Andrea Teixeira with JPMorgan.

我們的下一個問題將來自摩根大通的 Andrea Teixeira。

Congrats. Tarang and Mandy. I think you just called about the second quarter being roughly by my math, around $195 million. So touching $200 million a quarter, that's the new run rate. It seems like you just did $216 million. So just thinking at the second half, so it gets you to the $800 million that it's the top of your range guidance. So I'm thinking more as we look forward to the fall, you're getting additional shelf space, should we be thinking of -- and on top of what you just described in your prepared remarks, both the U.K. and Canada being a very relevant player now.

恭喜。塔朗和曼迪。我想你剛剛打來電話，根據我的計算，第二季度大約是 1.95 億美元。因此，新的運行率達到了每季度 2 億美元。看起來您剛剛做了 2.16 億美元。因此，只要考慮下半年，它就會讓您達到 8 億美元，這是您指導範圍的上限。因此，當我們期待秋天時，我會更多地考慮，我們是否應該考慮，您將獲得額外的貨架空間 - 除了您剛才在準備好的發言中描述的內容之外，英國和加拿大都是非常重要的現在相關玩家。

So should we be thinking of that type of growth continue to build, even if you lap the fourth quarter, I think the fourth quarter is where you'll get closer to that level of run rate. So how we should be thinking of the progression for the quarter. It seems like, again, your guidance in the second half even though you added -- to your previous question, you were adding $80 million more than you added in the quarter, but obviously, the run rate still has room to grow. If you can elaborate on that.

因此，我們是否應該考慮這種類型的增長繼續建立，即使您完成了第四季度，我認為第四季度您將更接近該運行率水平。那麼我們應該如何考慮本季度的進展。看起來，儘管您在上一個問題中添加了下半年的指導，但您比本季度添加的金額多了 8000 萬美元，但顯然，運行率仍有增長空間。如果你能詳細說明一下。

Thank you, Andrea, for the question. So as I think about our guidance, again, at 39% on the top end for the year is extremely strong. And how that breaks out across the quarters. As you know, we don't provide quarterly guidance, but we did want to give you some flavor for what we might see for Q2, and we'd like to take it a quarter at a time, as you know. As I mentioned earlier, the fundamentals of the business remain strong. And to your point, yes, we do have space expansion coming in the fall, particularly with Ulta, CVS and Walgreens that we have talked about previously. And so really excited to see how that materializes.

謝謝你，安德里亞，提出問題。因此，當我考慮我們的指導時，今年最高的 39% 是非常強勁的。以及這種情況如何在各個季度爆發。如您所知，我們不提供季度指導，但我們確實想讓您了解我們可能會看到的第二季度的情況，並且如您所知，我們希望一次提供一個季度的信息。正如我之前提到的，該業務的基本面依然強勁。就你的觀點而言，是的，我們確實會在秋季進行空間擴張，特別是我們之前討論過的 Ulta、CVS 和 Walgreens。非常高興看到這一切如何實現。

But if I think about building blocks and just what that looks like. We've seen really strong unit growth, and we talked about 56 points of unit growth in Q1. And so we continue to believe that our volume will lead our sales growth with mix coming in through AUR. And then if I just think about space gains versus the productivity that we're able to drive, productivity is still the main driver of the results that we're seeing. Space gains are a great complement to that. But with our marketing and digital spend and the innovation that we've launched, that's really helping to drive productivity itself. And we can -- we expect that momentum to continue as indicated by our raised guidance.

但如果我考慮一下構建塊以及它的樣子。我們看到了非常強勁的單位增長，我們談到第一季度的單位增長了 56 個百分點。因此，我們仍然相信，通過 AUR 的混合，我們的銷量將引領我們的銷售增長。然後，如果我只考慮空間收益與我們能夠提高的生產力，生產力仍然是我們所看到的結果的主要驅動力。空間收益是對此的一個很好的補充。但通過我們的營銷和數字支出以及我們推出的創新，這確實有助於提高生產力本身。我們可以——我們預計這種勢頭將繼續下去，正如我們提出的指導意見所表明的那樣。

And our next question here will come from Susan Anderson with Canaccord Genuity.

我們的下一個問題將來自 Canaccord Genuity 的 Susan Anderson。

Nice job on the quarter again. Just looking at the digital growth, once again, triple digits. I guess I'm curious, now the second quarter in a row, what's driving that acceleration? I guess what are you doing different now? Is it all the marketing? And then also, are you seeing new consumers online? Or are these consumers shopping more online now than they are in stores or both?

本季度再次表現出色。只要看看數字增長，再次達到三位數。我想我很好奇，現在已經連續第二個季度了，是什麼推動了這種加速？我猜你現在做了什麼不同的事情？都是營銷嗎？另外，您是否在網上看到了新的消費者？或者這些消費者現在在網上購物比在商店購物更多，還是兩者兼而有之？

Susan, this is Tarang. We're really pleased with our digital business and the progress. As you mentioned, we grew it again by triple digits. Our digital penetration now is 18% relative to 14% last year. And I'd say there's two main drivers. One is most of our marketing is digitally oriented, through our very social platforms, getting people to our site, and that certainly is working through the ROIs that we're seeing there.

蘇珊，這是塔朗。我們對我們的數字業務和進展感到非常滿意。正如您提到的，我們再次將其增長了三位數。我們的數字化滲透率目前為 18%，而去年為 14%。我想說有兩個主要驅動因素。一是我們的大部分營銷都是以數字為導向的，通過我們的社交平台，讓人們訪問我們的網站，這當然是通過我們在那裡看到的投資回報率來實現的。

But the second big driver of our digital business is our Beauty Squad Loyalty Program. Beauty Squad Loyalty members now account for, I think, over 3.9 million members growing about 25% a year. And as Mandy highlighted, they are the key driver for our digital business. So we're seeing really great results there. And then the last thing I'd say is we have really good strength not only on elfcosmetics.com but our business with Amazon as well as retailer.coms. And so we see a halo benefit of a lot of our digital efforts, also helping propel our retail results.

但我們數字業務的第二大推動力是我們的 Beauty Squad 忠誠計劃。我認為 Beauty Squad Loyalty 會員現在已超過 390 萬，並且每年增長約 25%。正如曼迪強調的那樣，他們是我們數字業務的關鍵驅動力。所以我們在那裡看到了非常好的結果。我要說的最後一件事是，我們不僅在 elfcosmetics.com 上擁有強大的實力，而且在與亞馬遜以及retailer.com 的業務上也擁有強大的實力。因此，我們看到了許多數字化努力的光環效益，也有助於推動我們的零售業績。

Our next question will come from Bill Chappell with Truist Securities.

我們的下一個問題將來自 Truist Securities 的 Bill Chappell。

Congratulations on the momentum. Just trying to understand, again, as we all are kind of what's driving the growth in terms of -- maybe more color on is there a specific channel, be it skin care, Target that's doing better? Or color or -- and also kind of is there a way to break out how much of this is coming from that kind of Beauty Squad existing customer having a bigger basket versus is there a way to attract new consumers coming into the market? And just trying to understand the breakdown of how we should look at it going forward.

恭喜你的勢頭。只是想再次了解一下，因為我們所有人都在推動增長，也許更多的色彩是否有一個特定的渠道，無論是皮膚護理，還是塔吉特做得更好？或者顏色或者——有沒有一種方法可以弄清楚其中有多少來自擁有更大購物籃的 Beauty Squad 現有客戶，以及有沒有辦法吸引新消費者進入市場？只是試圖了解我們應該如何看待未來的細分。

Bill, so I can try to break that down a little bit for you. So from a growth driver standpoint, we're really seeing growth across the entire business. When we think about channels, as Tarang just spoke to, our retailers are strong, our digital channels are strong. We talked about the tracked channel results that we're seeing right now, up 60% in the latest 12 weeks. So that indicates to you the retailer channel continues to be strong.

比爾，我可以試著為你解釋一下。因此，從增長動力的角度來看，我們確實看到了整個業務的增長。當我們考慮渠道時，正如塔朗剛才所說，我們的零售商很強大，我們的數字渠道也很強大。我們討論了我們現在看到的跟踪渠道結果，在最近 12 週內增長了 60%。因此，這表明零售商渠道仍然強勁。

From a color standpoint, we talked about both our growth in color and skin outpacing the category. Even internationally, where we're seeing growth in Canada and the U.K. outpacing the cosmetics category in those areas as well. So when we look across the board, we are seeing growth in nearly every segment of the business across channels, across segments. And so we're really pleased with that.

從顏色的角度來看，我們談論了我們在顏色和皮膚方面的增長超過了同類產品。即使在國際上，我們也看到加拿大和英國的增長速度也超過了這些地區的化妝品類別。因此，當我們全面審視時，我們發現幾乎每個業務領域都在跨渠道、跨細分市場都在增長。所以我們對此非常滿意。

In terms of new consumers, we also highlighted as an example of what we're seeing from a new consumer standpoint. The collaboration that we did with Mikayla Nogueira and bringing in 75% new consumers into that collaboration, which was the most that we've seen out of any launch that we've done recently. So it's really a fantastic trend that we're seeing here and really excited to see the growth, not just coming from one place, but really across the business.

在新消費者方面，我們還強調了我們從新消費者角度看到的一個例子。我們與 Mikayla Nogueira 進行的合作吸引了 75% 的新消費者參與其中，這是我們最近推出的任何產品中看到的最多的一次。因此，我們在這裡看到的這確實是一種奇妙的趨勢，並且非常高興看到這種增長，不僅僅是來自一個地方，而是整個行業的增長。

And our next question here will come from Anna Lizzul with Bank of America.

我們的下一個問題將來自美國銀行的 Anna Lizzul。

Congratulations on the results, very impressive. As we think about your shelf space gains and the increase in demand for your products, do you still feel comfortable with your current model of third-party manufacturing in China? This has been very successful in the past, but I'm wondering if you're looking to diversify the model or working to expand your manufacturing network.

恭喜你的結果，非常令人印象深刻。當我們考慮到您的貨架空間增加以及對您產品的需求增加時，您仍然對目前在中國的第三方製造模式感到滿意嗎？這在過去非常成功，但我想知道您是否正在尋求使模式多樣化或努力擴展您的製造網絡。

Anna, we feel great about our supply chain and the advantage we have as we talked in terms of the best combination of cost, quality and speed. And that supply chain has been highly resilient through the pandemic, coming out of the pandemic, meeting the very strong consumer demand we have. But we also have been doing diversification efforts, really taking that same advantage we have is like-minded suppliers with a high degree of control that we have over those suppliers. We started up additional operations in Thailand. We're looking at other geographies as well.

安娜，我們對我們的供應鍊和我們在成本、質量和速度的最佳組合方面所擁有的優勢感到非常滿意。該供應鏈在疫情期間具有高度彈性，能夠滿足我們非常強勁的消費者需求。但我們也一直在努力實現多元化，真正利用我們擁有的同樣優勢，即志同道合的供應商，我們對這些供應商擁有高度控制權。我們在泰國開始了更多業務。我們也在關注其他地區。

So over time, really from a business continuity standpoint, we're going to be in a position where if anything happened in China, we have the vast majority of our production that could also be sourced elsewhere. But we love what we continue to see in terms of our operating advantage and the investments we're also making to improve our distribution capability and infrastructure.

因此，隨著時間的推移，真正從業務連續性的角度來看，我們將處於這樣的境地：如果中國發生任何事情，我們的絕大多數生產也可以從其他地方採購。但我們喜歡我們繼續看到的運營優勢以及我們為改善分銷能力和基礎設施而進行的投資。

Our next question will come from Korinne Wolfmeyer with Piper Sandler.

我們的下一個問題將由科林·沃爾夫邁耶和派珀·桑德勒提出。

Congratulations on an awesome quarter. I'd like to dive a bit more into the gross margin outlook for the remainder of the year and kind of the puts and takes of what's really driving the expansion as you saw in Q1? And what in that expansion is really sustainable versus maybe more onetime or may be more front-end loaded in the year versus back end? And then thinking about EBITDA for the remainder of the year in marketing spend, how should we be thinking about the cadence of this increased marketing spend throughout the year? Is it going to probably pick up towards the back half? Or is it going to be more equal across the quarter?

祝賀您度過了一個精彩的季度。我想更深入地了解今年剩餘時間的毛利率前景，以及您在第一季度看到的真正推動擴張的因素是什麼？在這種擴張中，什麼是真正可持續的，而不是一次性的，或者一年中前端負載比後端負載更多？然後考慮今年剩餘時間的營銷支出 EBITDA，我們應該如何考慮全年營銷支出增加的節奏？到後半段可能會有所回升嗎？或者整個季度會更加平等嗎？

Yes. So on the gross margin outlook, we are really pleased to the outlook in gross margin at 150 basis points of improvement year-over-year. That's on top of the 320 basis points of improvement in gross margin we delivered in fiscal '23. And so when you think about the puts and takes, we talked about for Q1, FX being a driver -- a favorable driver to our gross margin. Mix and cost savings, as we spoke to earlier today, our innovation as we do introduce that we have higher margin rates. And so we're getting a benefit from that as well.

是的。因此，就毛利率前景而言，我們對毛利率前景同比提高 150 個基點感到非常高興。這是我們在 23 財年實現毛利率提高 320 個基點的基礎上的。因此，當您考慮看跌期權和看跌期權時，我們談到了第一季度，外匯是一個驅動因素——對我們的毛利率有利的驅動因素。正如我們今天早些時候談到的，混合和成本節約，我們的創新正如我們所介紹的，我們有更高的利潤率。所以我們也從中受益。

Lower transportation costs, as we've talked for the past couple of quarters are starting to flow through. We started to see that in Q4. And then we also had lower inventory adjustments this quarter as we look at reserves that we take on a quarterly basis, it came in lower, this quarter. And so if I think about what's onetime versus not in that sequence, the inventory adjustments that will ebb and flow from quarter-to-quarter. So I think about that as more onetime in nature. If I think on the longer our FX also will ebb and flow. And so, we've been really pleased to see that we can continue to push our gross margin forward and happy to take our outlook up to 150 basis points this quarter.

正如我們在過去幾個季度所討論的那樣，運輸成本的降低已經開始顯現。我們在第四季度開始看到這一點。然後，本季度我們的庫存調整也較低，因為我們查看了按季度儲備的儲備，本季度的庫存調整較低。因此，如果我考慮一下什麼是一次性的，什麼不是按順序進行的，庫存調整將逐季起伏。所以我認為這本質上是一次性的。如果我認為時間越長，我們的外匯也會起伏不定。因此，我們非常高興地看到我們能夠繼續提高毛利率，並很高興將本季度的預期提高到 150 個基點。

From an EBITDA standpoint and from a marketing spend and the cadence of how that looks over the balance of the year, we are still targeting that 22% to 24% range from a marketing standpoint. And so I would expect to see a ramped up spent Q2 through Q4. How that comes in by quarter may vary, but we will be targeting higher spend to get to that 22% to 24% range by the end of the year.

從 EBITDA 的角度來看，從營銷支出以及今年剩餘時間的節奏來看，我們的目標仍然是 22% 到 24% 的範圍。因此，我預計第二季度到第四季度的支出將會增加。每個季度的具體情況可能會有所不同，但我們的目標是增加支出，以便在年底前達到 22% 至 24% 的範圍。

Our next question will come from Ashley Helgans with Jefferies.

我們的下一個問題將由杰弗里斯的阿什利·赫爾根斯提出。

Congrats on the quarter. So we're starting to see Duke's become super popular in the fragrance category and being the leader and Duke -- I'm curious if you'd ever explore inducing categories like fragrance and hair care.

恭喜本季度。因此，我們開始看到杜克在香水類別中變得非常受歡迎，並成為領導者和杜克 - 我很好奇您是否曾經探索過香水和護髮等誘導類別。

Ashley, well, I think our approach is more than Dukes. We always put our own e.l.f. twist on whatever we take inspiration from either prestige or our community, there's all the meaningful differences between what we go after. And I think that formula is working, really being able to bring that prestige quality these extraordinary prices.

阿什利，嗯，我認為我們的方法比杜克斯的方法更多。我們總是把自己的 e.l.f.無論我們從聲望還是社區中獲得靈感，我們所追求的東西之間都存在著有意義的差異。我認為這個公式正在發揮作用，確實能夠以非凡的價格帶來卓越的品質。

In terms of category adjacencies, we're open to looking at other categories. But I'd say our primary focus right now is color cosmetics and skin care. We have so much white space in both of those. And for perspective and color cosmetics, I'm really bullish about the share gains that we've been able to sustain, fill up nationally in the last year. We passed both CoverGirl and Revlon for the #3 reposition in color cosmetics at 9.5% share. But if I look at our longest-standing national retailer target, we're the clear #1 brand there with an 18% share. So I feel over the next few years, we have an opportunity to double our market share in color cosmetics.

就類別相鄰性而言，我們願意考慮其他類別。但我想說我們現在的主要關注點是彩妝和皮膚護理。我們在這兩個方面都有很多空白。對於透視和彩妝來說，我非常看好我們去年能夠在全國范圍內維持的份額增長。我們以 9.5% 的份額超越了 CoverGirl 和露華濃，在彩妝領域重新排名第三。但如果我看看我們歷史最悠久的全國零售商目標，我們顯然是第一品牌，佔有 18% 的份額。所以我覺得在接下來的幾年裡，我們有機會將彩妝市場份額翻倍。

Skin care perhaps even more white space. We're now the #14 brand in skin care. I talked about our growth rates there a little while ago, but we still only have a 1.5% share relative to the market leader at 15%. So while we're open to other adjacencies, I think we have plenty to tackle both in color cosmetics and skin care.

護膚或許還有更多空白。我們現在是護膚品領域排名第 14 的品牌。不久前我談到了我們在那裡的增長率，但相對於市場領導者 15% 的份額，我們仍然只有 1.5%。因此，雖然我們對其他領域持開放態度，但我認為我們在彩妝和皮膚護理方面還有很多需要解決的問題。

Our next question will come from Mark Astrachan with Stifel.

我們的下一個問題將來自 Stifel 的 Mark Astrachan。

I wanted to ask about skin care and just sort of learning so far as the category becomes a bigger percent of mix? What's the overlap of the skin care consumers who's buying the e.l.f.'s skin care product with the legacy business? How much are new users? How do you think about that in terms of being -- in terms of both user bases if there are with driving the growth going forward? And sort of related to that, how do you think about the trade into the e.l.f. skin care franchise versus the trade into of the legacy business?

我想問一下關於皮膚護理和學習的問題，因為該類別在混合中所佔的比例更大？購買 e.l.f. 護膚品的護膚消費者與傳統業務有何重疊？新用戶有多少？您如何看待這兩個用戶群（如果有推動未來增長的因素）？與此相關的是，你如何看待 e.l.f. 的交易？護膚品特許經營權與傳統業務的交易？

So Mark, if I look at our skin care business, I'd say historically, that our skin care consumers were primarily our e.l.f. Cosmetics consumers, particularly in places like Target where skin care is housed with our color cosmetics in the same set. And so I think that has been a really good basket builder as I think of our productivity model in terms of getting skin in, they're buying additional items.

所以，馬克，如果我看看我們的皮膚護理業務，我會說，從歷史上看，我們的皮膚護理消費者主要是我們的精靈。化妝品消費者，尤其是像 Target 這樣的地方，那裡的護膚品與我們的彩妝是同一套產品。因此，我認為這是一個非常好的購物籃構建者，因為我認為我們的生產力模型在參與方面，他們正在購買額外的物品。

More recently, we've seen a lot more new users come in, primarily through the innovation. So we talked about our Suntouchables, Whoa Glow the 3 items we launched there, a big portion of the volume of those have been entirely new consumers to the e.l.f. franchise. So I think you're going to see a mix as we go forward and particularly, we have a very good pipeline on skin care. And I think we can use it to attract more new consumers to the overall franchise.

最近，我們看到更多的新用戶進來，主要是通過創新。所以我們談論了我們的 Suntouchables、Whoa Glow 以及我們在那裡推出的 3 款產品，其中很大一部分是 e.l.f. 的全新消費者。特許經營權。因此，我認為隨著我們的前進，您會看到混合的情況，特別是，我們在皮膚護理方面擁有非常好的管道。我認為我們可以利用它來吸引更多新消費者加入整個特許經營業務。

Our next question will come from Jon Andersen with William Blair.

我們的下一個問題將由喬恩·安德森和威廉·布萊爾提出。

Congrats on the great quarter. Quick question on gross margin follow-up. I'm just wondering if the transportation costs and the currency benefits, which have been aiding gross margin, are there additional or incremental benefits on that front going forward? Or have we reached kind of a run rate level for transportation cost, ocean freight and the FX helper?

祝賀這個偉大的季度。關於毛利率跟進的快速問題。我只是想知道一直有助於提高毛利率的運輸成本和貨幣收益是否會在未來這方面帶來額外或增量的收益？或者我們是否達到了運輸成本、海運和外匯助手的運行費率水平？

Yes. Thanks, Jon. So from a transportation standpoint, there's still benefit to flow through. As you know, we capitalize those transportation costs and takes time to flow through the P&L. So I would expect those to continue for the balance of the year. On FX, I also expect that to be a benefit to us from a year-over-year standpoint through fiscal '24. As we are looking at that, that has been favorable for us and remains so on a year-over-year standpoint.

是的。謝謝，喬恩。因此，從交通的角度來看，流動仍然有好處。如您所知，我們將這些運輸成本資本化，並需要時間來反映損益表。因此，我預計這些將在今年餘下時間繼續下去。在外匯方面，我還預計，從 2024 財年同比的角度來看，這將給我們帶來好處。正如我們所看到的，這對我們來說是有利的，並且從逐年的角度來看仍然如此。

Our next question will come from Rupesh Parikh with Oppenheimer.

我們的下一個問題將由魯佩什·帕里克和奧本海默提出。

This is actually Erica Eiler on for Rupesh. So I actually have sort of a 2-part question here. So I mean you guys are obviously exceeding that longer-term top line growth algorithm that you had once set out for mid- to high single-digit top line growth. Just first, curious just any new thoughts on what the steady state top line growth could look like for your business? And then second, as we think longer term, I mean, your gross margins are now 70%, I mean how are you thinking about the ceiling on gross margins here? And is there still opportunity for expansion over the longer term? Just any thoughts you could show there would be helpful.

這實際上是艾麗卡·艾勒 (Erica Eiler) 為魯佩什 (Rupesh) 配音。所以我實際上有一個由兩部分組成的問題。所以我的意思是，你們顯然超出了你們曾經設定的中高個位數營收增長的長期營收增長算法。首先，想知道您的企業的穩態營收增長會是什麼樣子嗎？其次，從長遠來看，我的意思是，你們的毛利率現在是 70%，我的意思是你們如何考慮這裡的毛利率上限？從長遠來看，是否還有擴張的機會？您可以在那裡表達的任何想法都會有所幫助。

So in terms of the long-term algorithm, we have not revisited that, but we feel great about the momentum that we've seen recently. We talked about 18 consecutive quarters of growth. And we are 1 of 5 out of 274 consumer companies that have delivered that consistency of growth and at that level over time. So over 20% growth on average per quarter over that time. And so we feel great about our growth and what we have on the road ahead. We've talked about the white space opportunities along -- across color, skin and in international that we believe can be growth drivers for us over the long term.

因此，就長期算法而言，我們還沒有重新審視這一點，但我們對最近看到的勢頭感到非常高興。我們談到了連續 18 個季度的增長。在 274 家消費品公司中，有 5 家公司實現了長期穩定的增長，我們就是其中之一。在此期間，平均每季度增長超過 20%。因此，我們對自己的成長和未來的發展感到非常滿意。我們已經討論了跨膚色、膚色和國際的空白機會，我們相信這些機會可以成為我們長期增長的動力。

And in terms of gross margin and any feeling that we see there, we haven't given a long-term gross margin target other than to say that we believe as we launch innovation and core to what we do, believe that we can mix favorably from a gross margin standpoint, the levels to what that looks like year-to-year will vary.

就毛利率和我們看到的任何感覺而言，我們沒有給出長期毛利率目標，只是說我們相信，隨著我們推出創新和我們所做的核心工作，相信我們可以有利地混合從毛利率的角度來看，每年的毛利率水平都會有所不同。

Yes. And the only thing I would add to that is there's a healthy tension between gross margin and ensuring we're delivering superior value equation. So I think that would be -- while there's plenty of opportunity from a gross margin standpoint, as Mandy said, through innovation mix and our cost savings programs, we also want to make sure we're delivering a really great value. And so we will keep an idea versus taking our gross margins up to that.

是的。我唯一要補充的是，毛利率和確保我們提供卓越價值之間存在著健康的緊張關係。所以我認為，雖然從毛利率的角度來看有很多機會，正如曼迪所說，通過創新組合和我們的成本節約計劃，我們也希望確保我們提供真正巨大的價值。因此，我們將保留一個想法，而不是將我們的毛利率提高到這個水平。

Our next question will come from Oliver Chen with TD Cowen.

我們的下一個問題將由 Oliver Chen 和 TD Cowen 提出。

This is Jonna on for Oliver. Just curious as sort of the [sit in] loans come back, the payment comes back and lower income consumers remain under pressure. How do you think about your positioning in sort of your pricing point at this point? And also, just curious on your international growth strategy, which markets are you prioritizing now and how your strategy of products might differ in international markets versus the U.S.

這是奧利弗的喬娜。奇怪的是，隨著[靜坐]貸款的回來，付款也回來了，低收入消費者仍然面臨壓力。您目前如何看待您在定價點上的定位？另外，只是想知道您的國際增長戰略，您現在優先考慮哪些市場，以及您的產品戰略在國際市場與美國市場上可能有何不同。

So we're keeping an eye on the consumer environment and the overall macroeconomic environment, we feel we're very well positioned on that superior value equation, our average unit retails and color cosmetics are a little bit over $6 compared to $9 for legacy brands and almost over $20 for prestige. We feel sets us up well, particularly given as we continue to take our quality ratings up year after year after year, we feel really good about that, but we'll be paying close attention to.

因此，我們正在密切關註消費者環境和整體宏觀經濟環境，我們認為我們在卓越的價值等式上處於非常有利的位置，我們的平均單位零售和彩妝價格略高於 6 美元，而傳統品牌的平均單位零售價為 9 美元聲望花費幾乎超過20美元。我們覺得這對我們來說很好，特別是考慮到我們年復一年地繼續提高我們的質量評級，我們對此感覺非常好，但我們會密切關注。

And then on the pricing point, we've decided not to take additional pricing in the U.S. We may take around internationally to catch up to the pricing we did in March of 2022. But we feel that also will keep us well positioned. We're hearing some rumors of competitors, perhaps taking some pricing right now. So we feel our value equation will get perhaps even stronger as we take the stance that we have.

然後在定價方面，我們決定不在美國採取額外定價。我們可能會在國際上採取行動，以趕上 2022 年 3 月的定價。但我們認為這也將使我們保持有利的地位。我們聽到了一些關於競爭對手的傳言，他們可能正在採取一些定價。因此，我們認為，當我們採取現有立場時，我們的價值方程式可能會變得更強。

And then in terms of our international expansion, we're quite bullish in terms of our prospects internationally. We talked about the strength we have in Canada and the U.K. The team that we're building out in the U.K. has identified a number of other countries that we can enter. We tend to make those announcements quarter-by-quarter depending on kind of where we're entering. But I'd say our first focus will be Western Europe. We've got kind of proof of concept in the U.K., and the momentum we have in the U.K. We feel there are other countries we can enter in Western Europe.

然後就我們的國際擴張而言，我們對國際前景非常樂觀。我們討論了我們在加拿大和英國的實力。我們在英國組建的團隊已經確定了我們可以進入的其他一些國家。我們傾向於根據我們進入的領域逐季度發布這些公告。但我想說，我們的首要重點將是西歐。我們在英國已經獲得了某種概念驗證，並且我們在英國擁有動力。我們覺得我們可以進入西歐其他國家。

We also feel good about we have a business in India with Nykaa in online beauty retailer. That's done extremely well. So we feel there'll be additional markets that we can enter. But first order of business will probably fill out Western Europe in a disciplined way and then go to other markets from there.

我們還對在印度與在線美容零售商 Nykaa 開展業務感到滿意。這一點做得非常好。因此，我們認為我們可以進入更多市場。但第一筆業務可能會以嚴格的方式填補西歐，然後從那裡進入其他市場。

And this concludes our question-and-answer session. I'd like to turn the conference back over to the Chairman and CEO, Tarang Amin for any closing remarks.

我們的問答環節到此結束。我想將會議轉回主席兼首席執行官塔朗·阿明 (Tarang Amin) 致閉幕詞。

Well, thank you for joining us today. I'm so proud of our incredible team at e.l.f. Beauty for again delivering outstanding results at start of fiscal '24. We look forward to seeing some of you at our upcoming investor meetings and speaking with you in November when we'll discuss our second quarter results. Thank you, and be well.

好的，謝謝您今天加入我們。我為 e.l.f. 令人難以置信的團隊感到自豪。 Beauty 在 24 財年伊始再次取得了出色的業績。我們期待在即將舉行的投資者會議上見到你們，並在 11 月份與你們交談，屆時我們將討論我們的第二季度業績。謝謝你，祝你一切順利。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。感謝您參加今天的演講。您現在可以斷開線路。