elf Beauty Inc (ELF) 2020 Q1 法說會逐字稿

Greetings and welcome to e.l.f. Beauty's First Quarter Fiscal 2020 Earnings Results. (Operator Instructions)

問候並歡迎來到 e.l.f.Beauty 2020 財年第一季度盈利結果。（操作員說明）

As a reminder, this conference is being recorded. I would now like to turn the conference over to you, Willa Mcmanmon. Thank you. Please begin.

提醒一下，本次會議正在錄製中。現在我想把會議交給你，威拉·麥克曼蒙。謝謝。請開始。

Good afternoon, everyone. Thank you for joining us today to discuss e.l.f. Beauty's first quarter fiscal 2020 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.Beauty 2020 財年第一季度盈利結果。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 2020 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. In addition, the company's presentation today includes information presented on a non-GAAP basis. We refer you to today's press release for a reconciliation of the differences between the non-GAAP presentation in the most directly comparable GAAP measures.

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。這些聲明，包括與公司 2020 財年展望相關的聲明，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。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，以了解非公認會計原則表述與最直接可比的公認會計原則衡量指標之間的差異。

With me from management today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer. With that, I'll turn the call over to Tarang.

今天與我同在的還有管理層的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。這樣，我會將電話轉給 Tarang。

Good afternoon and thank you for joining us. We're encouraged by our first quarter results with net sales of $60 million and adjusted EBITDA of $14.5 million. Excluding e.l.f. stores, net sales were up 7% versus year ago. We're pleased with the initial progress we're making on each of our strategic imperatives. We're in the early days of our brand recharge, and we like what we see so far. In turn, we are raising our fiscal 2020 guidance.

下午好，感謝您加入我們。我們對第一季度的業績感到鼓舞，淨銷售額為 6000 萬美元，調整後 EBITDA 為 1450 萬美元。不包括 e.l.f.商店淨銷售額比去年同期增長 7%。我們對每項戰略任務所取得的初步進展感到高興。我們正處於品牌充電的早期階段，我們喜歡目前所看到的情況。反過來，我們正在提高 2020 財年指導。

Let me update you on progress we've made during the quarter across each imperatives. Our first 2 imperatives of driving demand in the brand and a major step-up in digital are off to a fast start.

讓我向您介紹本季度我們在每項重要任務上取得的最新進展。我們推動品牌需求的前兩項要務和數字化的重大進步已經開始快速啟動。

In June, we launched our #elfingamazing amazing digital campaign, which showcases the unique attributes of the e.l.f. brand. The digital assets support our mission to make the best of beauty accessible for every eye, lip and face. Since the campaign started, the impressions and video completion rates are double our initial goals. These metrics indicate our message is resonating with consumers as they are choosing to watch our content to completion versus opting out.

六月，我們推出了#elfingamazing 令人驚嘆的數字活動，展示了 e.l.f. 的獨特屬性。品牌。數字資產支持我們的使命，即讓每個眼睛、嘴唇和臉部都能享受到最好的美麗。自活動開始以來，展示次數和視頻完成率是我們最初目標的兩倍。這些指標表明我們的信息引起了消費者的共鳴，因為他們選擇完整觀看我們的內容而不是選擇退出。

Since January, we've seen double-digit improvements in our Google search and EMV trends relative to our cosmetics category that saw soft trends in these measures. Collectively, these efforts drove share gains with Nielsen reporting e.l.f dollar share in the last 12 weeks of 4.3%, up 50 basis points. Our brand has been highly responsive to our marketing efforts and the lift in brand awareness is bringing new consumers to our retailers and to elfcosmetics.com.

自 1 月份以來，我們的 Google 搜索和 EMV 趨勢相對於我們的化妝品類別出現了兩位數的增長，這些指標的趨勢呈疲軟趨勢。總的來說，這些努力推動了股價上漲，尼爾森報告稱，過去 12 週的 e.l.f 美元份額為 4.3%，上漲了 50 個基點。我們的品牌對我們的營銷工作做出了高度響應，品牌知名度的提升為我們的零售商和 elfcosmetics.com 帶來了新的消費者。

For the quarter, our e-commerce site saw a double-digit increase in traffic, conversion and revenue growth versus last year.

本季度，我們的電子商務網站的流量、轉化率和收入增長與去年相比均實現了兩位數增長。

In addition to bringing more people to the brand, we are transforming the e.l.f. consumer journey through digital technology. This will enable a better consumer experience including the revamped Beauty Squad Loyalty Program.

除了為品牌帶來更多人之外，我們還在改變 e.l.f.通過數字技術的消費者旅程。這將帶來更好的消費者體驗，包括改進後的 Beauty Squad 忠誠計劃。

Beauty Squad, which has 1.3 million members ,now features receipt scanning, allowing members to earn points for in-store purchases made at national retailers such as Walmart, Target, Ulta Beauty and drug stores. This, along with other technology enhancements, will allow us to connect our consumer data to enable better personalization.

Beauty Squad 擁有 130 萬名會員，現在提供收據掃描功能，允許會員在沃爾瑪、Target、Ulta Beauty 和藥店等全國零售商的店內購物賺取積分。這與其他技術增強一起將使我們能夠連接消費者數據以實現更好的個性化。

In the first quarter, we continue to ramp up our target outreach to influencers with box mailings and launch events featuring hero products like our new limited edition Jelly Pop Collection.

在第一季度，我們繼續通過盒裝郵件和推出以英雄產品為特色的活動來擴大對有影響力的目標，例如我們的新限量版 Jelly Pop 系列。

The Jelly Pop launch was supported with 500 influencers receiving a custom mini e.l.f. Jelly Pop refrigerator to keep this playful collection cool during the hot summer months. Mega influencers posted positive reviews and content to over 58 million of their combined followers on Instagram. Jelly Pop engagement on Instagram has been 7x greater than our average post. In addition to influencer outreach, we have a steady calendar of monthly giveaways and collaborations supported with new digital content. All of this has helped grow our Instagram followers to over 4.7 million.

Jelly Pop 的發布得到了 500 名影響者的支持，他們收到了定制的迷你 e.l.f.Jelly Pop 冰箱可讓這個俏皮系列在炎熱的夏季保持涼爽。超級影響者在 Instagram 上向超過 5800 萬粉絲發布了積極的評論和內容。Jelly Pop 在 Instagram 上的參與度是我們平均帖子的 7 倍。除了影響者外展之外，我們還有穩定的每月贈品和新數字內容支持的合作日曆。所有這些都幫助我們的 Instagram 粉絲數量增加到超過 470 萬。

We're leveraging our unique combination of cost, quality and speed to drive our third imperative: A focus on first-to-mass by providing prestige quality products at an extraordinary value. We are focused on supporting our hero products like Poreless Putty Primer, which the U.K. Daily Mail recently called the best primer ever.

我們正在利用成本、質量和速度的獨特組合來推動我們的第三個當務之急：通過提供具有非凡價值的優質產品來專注於第一大批量。我們專注於支持我們的英雄產品，例如無孔膩子底漆，英國《每日郵報》最近稱其為有史以來最好的底漆。

In June, Poreless Putty Primer was the #1 e.l.f item at Target, Ulta, Walmart and elfcosmetics.com. We're also leveraging the strength of our 16Hr Camo Concealer, which compares favorably to the leading concealer in Prestige. We launch new Camo displays in 1,500 Walmart stores and Camo plus e.l.f sponge flex towers in 1,500 Target locations. We continue to amplify these products through our digital marketing to truly make this a 360-degree activation.

6 月，Poreless Putty Primer 成為 Target、Ulta、Walmart 和 elfcosmetics.com 排名第一的 e.l.f 產品。我們還利用了 16 小時迷彩遮瑕膏的優勢，它與 Prestige 中領先的遮瑕膏相比毫不遜色。我們在 1,500 家沃爾瑪商店推出了新的 Camo 展示架，並在 1,500 個 Target 門店推出了 Camo plus e.l.f 海綿柔性塔。我們繼續通過數字營銷擴大這些產品，真正實現 360 度全方位激活。

Our fourth imperative, improving productivity at national retailers, is on track with Phase I of Project Unicorn completed across our largest national retailer partners. During the quarter, we saw improvements in productivity within our track channels, which include Target and Walmart as well as our untracked channels such as Ulta. With the packaging and merchandising enhancements from Unicorn, we've seen growth across product segments.

我們的第四個當務之急是提高全國零售商的生產力，隨著我們最大的全國零售商合作夥伴完成的“獨角獸計劃”第一階段的進展，一切都步入正軌。在本季度，我們看到跟踪渠道（包括 Target 和沃爾瑪）以及 Ulta 等非跟踪渠道的生產力有所提高。隨著獨角獸包裝和銷售的改進，我們看到了各個產品領域的增長。

Phase 2 of Project Unicorn, which mostly covers brushes starts this month in all channels.

獨角獸計劃的第二階段主要涵蓋畫筆，將於本月在所有渠道啟動。

Phase 3 of Unicorn is planned for the spring 2020 set. We will introduce more new items and better visual merchandising across retailers.

Unicorn 第三階段計劃於 2020 年春季推出。我們將在零售商之間推出更多新商品和更好的視覺營銷。

Our fifth strategic imperative is generating cost savings to help offset our increased marketing spend. As a reminder, our most significant initiative was closing our 22 e.l.f. stores in February. We expect to redeploy the $13.7 million in savings from this to our marketing and digital initiatives. In addition, we have started our Ontario, California distribution center automation and expected to be fully running by the end of September. Our U.S. liquid fill facility is on schedule and expected to be operational by the end of the fiscal year. We also continue to strengthen our China operations using lean-manufacturing techniques. Combined, we expect these supply chain efforts to provide around $3 million in cost savings this year.

我們的第五個戰略要務是節省成本，以幫助抵消我們增加的營銷支出。提醒一下，我們最重要的舉措是關閉我們的 22 e.l.f.二月份的商店。我們預計將由此節省的 1,370 萬美元重新部署到我們的營銷和數字計劃中。此外，我們已經啟動了安大略省、加利福尼亞州的配送中心自動化，預計將在九月底全面運行。我們的美國液體灌裝設施正在按計劃進行，預計將在本財年末投入運營。我們還繼續利用精益製造技術加強我們在中國的業務。我們預計這些供應鏈努力今年將節省約 300 萬美元的成本。

With that update, I'll now turn the call over to Mandy to discuss our results and guidance in more detail.

隨著這一更新，我現在將把電話轉給曼迪，更詳細地討論我們的結果和指導。

Thank you, Tarang. I'll now discuss the results for the first quarter of fiscal 2020 as compared to the 3 months ended June 30, 2018.

謝謝你，塔朗。我現在將討論 2020 財年第一季度與截至 2018 年 6 月 30 日止三個月的結果。

Net sales of $60 million were up 7% from year ago, excluding e.l.f. stores, driven by increased productivity across key retailers and strength on elfcosmetics.com.

不包括 e.l.f. 的淨銷售額為 6,000 萬美元，比去年同期增長 7%。商店，主要零售商生產力的提高以及 elfcosmetics.com 的實力推動了這一趨勢。

As Tarang discussed, we are pleased with the progress of our strategic imperatives, the sales momentum we are seeing behind our marketing and digital investment and the continued success of Project Unicorn.

正如 Tarang 所討論的，我們對我們的戰略要務的進展、我們在營銷和數字投資背後看到的銷售勢頭以及獨角獸項目的持續成功感到高興。

Gross margin of 62% was flat to prior year with margin accretive innovation, vendor concessions and favorable foreign exchange rates, offsetting the impact of 10% tariffs on Chinese goods and the closure of our retail stores. Note that in Q1, our gross margins were not yet impacted by tariffs at the 25% level, which cover most of our goods. On August 1, additional tariffs of 10% were announced effective September 1, which would impact our brushes and tools. We expect to offset the margin rate impact of tariffs through selective price increases, FX and cost savings initiatives.

毛利率為 62%，與上年持平，這得益於利潤增值創新、供應商優惠和有利的外匯匯率，抵消了對中國商品徵收 10% 關稅和關閉零售店的影響。請注意，在第一季度，我們的毛利率尚未受到 25% 水平關稅的影響，該水平涵蓋了我們的大部分商品。8 月 1 日，宣布加徵 10% 的關稅，自 9 月 1 日起生效，這將影響我們的刷子和工具。我們預計通過選擇性提價、外彙和成本節約舉措來抵消關稅對利潤率的影響。

On an adjusted basis, SG&A as a percentage of sales was 47% compared to 49% of net sales in the same period of 2018, mainly driven by cost savings from the closure of our 22 e.l.f. stores, partially offset by increased investment in our marketing and digital initiatives.

調整後的銷售、管理及行政費用佔銷售額的百分比為 47%，而 2018 年同期占淨銷售額的 49%，這主要是由於我們關閉 22 e.l.f. 工廠節省了成本。商店，部分被我們對營銷和數字計劃的投資增加所抵消。

As discussed last quarter, we expect marketing plus e-commerce spend to be 10% to 12% of net sales on the year. In Q1, marketing and e-commerce spend was 11% of net sales compared to 6% in the year ago quarter.

正如上季度所討論的，我們預計營銷加電子商務支出將佔當年淨銷售額的 10% 至 12%。第一季度，營銷和電子商務支出占淨銷售額的 11%，而去年同期為 6%。

Adjusted EBITDA was up 12% at $14.5 million versus $13 million a year ago. Adjusted net income was $6.9 million or $0.14 per diluted share compared to $6.5 million or $0.13 per diluted share a year ago.

調整後 EBITDA 增長 12%，達到 1,450 萬美元，而一年前為 1,300 萬美元。調整後淨利潤為 690 萬美元，即稀釋後每股收益 0.14 美元，而一年前為 650 萬美元，即稀釋後每股收益 0.13 美元。

We generated $12.9 million of cash flows from operations in the quarter, bringing our cash balance to $60.7 million as of June 30, 2019 compared to a cash balance of $17.4 million last year. The improvement was primarily driven by disciplined working capital management across inventory and receivables, coupled with improved operating results.

本季度我們的運營產生了 1,290 萬美元的現金流，截至 2019 年 6 月 30 日，我們的現金餘額達到 6,070 萬美元，而去年的現金餘額為 1,740 萬美元。這一改善主要得益於庫存和應收賬款嚴格的營運資本管理，以及經營業績的改善。

Last quarter, we announced a share repurchase program of up to $25 million. In Q1, we repurchased approximately 90,000 shares. As we evaluate our excess cash position, our capital allocation strategy remains unchanged. We plan to prioritize investment behind our key strategic initiatives to increase consumer awareness and build brand relevancy. We will also continue to evaluate strategic extensions to leverage the investments we've made in our platform and to fuel long-term growth. We believe we are well positioned to fund our initiatives through free cash flow and return excess cash to shareholders through our repurchase program.

上季度，我們宣布了高達 2500 萬美元的股票回購計劃。第一季度，我們回購了約 90,000 股股票。當我們評估我們的過剩現金狀況時，我們的資本配置策略保持不變。我們計劃優先投資我們的關鍵戰略舉措，以提高消費者意識並建立品牌相關性。我們還將繼續評估戰略擴展，以利用我們在平台上所做的投資並推動長期增長。我們相信，我們有能力通過自由現金流為我們的舉措提供資金，並通過回購計劃將多餘現金返還給股東。

Now turning to our fiscal 2020 guidance. Based on our strong Q1 results, an initial progress from our marketing and digital investments, we are raising our fiscal 2020 outlook.

現在轉向我們的 2020 財年指導。基於第一季度的強勁業績以及營銷和數字投資的初步進展，我們上調了 2020 財年的展望。

We expect net sales to be flat to down 4% versus fiscal 2019, excluding the impact of e.l.f. stores. This is up from the negative 4% to negative 8% range previously guided, from net post the upward revisions to our adjusted EBITDA, net income and EPS ranges.

我們預計淨銷售額將與 2019 財年持平或下降 4%，排除 e.l.f. 的影響。商店。這高於之前指導的負 4% 至負 8% 的範圍，從淨值上調到我們調整後的 EBITDA、淨利潤和每股收益範圍。

We expect adjusted EBITDA between $47 million and $50 million, adjusted net income between $19 million and $22 million and adjusted EPS of $0.37 to $0.41 per share on a fully diluted basis with the share count of 52.5 million.

我們預計調整後的EBITDA 在4700 萬美元至5000 萬美元之間，調整後的淨利潤在1900 萬美元至2200 萬美元之間，調整後的每股收益在完全稀釋的基礎上為0.37 美元至0.41美元，股數為5250 萬美元。

Many of you are monitoring track channel data very closely and are encouraged by our recent trends. Our improved top line guidance balances the strength with recent price increases and lower pipeline and seasonal shipments.

你們中的許多人都在密切關注軌道數據，並對我們最近的趨勢感到鼓舞。我們改進的營收指引平衡了近期價格上漲以及管道和季節性出貨量下降的優勢。

Let me provide some perspective on this.

讓我對此提供一些看法。

In late July, for the first time in e.l.f. history, we initiated a price increase impacting approximately 1/3 of our SKUs to help mitigate the impact of 25% tariffs. We have yet to see how this will affect our volume in the long term and should have a better understanding coming out of the second quarter when we have more elasticity data. Additionally, in Q2 and Q3 of fiscal 2020, we will be cycling $10 million in pipeline and seasonal volume from 2018 that we do not anticipate having this year.

7月下旬，第一次在e.l.f.歷史上，我們發起了一次漲價，影響了大約 1/3 的 SKU，以幫助減輕 25% 關稅的影響。我們還沒有看到這將如何影響我們的長期銷量，並且當我們獲得更多彈性數據時，應該會在第二季度有更好的理解。此外，在 2020 財年第二季度和第三季度，我們將從 2018 年開始循環利用 1000 萬美元的管道和季節性銷量，但預計今年不會出現這種情況。

Therefore, while we are encouraged with the recent strength in the business, we are taking a balanced approach to the outlook.

因此，雖然我們對近期業務的強勁表現感到鼓舞，但我們對前景採取平衡的態度。

As I round up my first full quarter with the company, I can't tell you how proud I am to be a part of the amazing team behind this extraordinary brand. I look forward to updating you on our continued progress in the coming quarters.

當我結束在公司的第一個完整季度時，我無法告訴你我是多麼自豪能夠成為這個非凡品牌背後的令人驚嘆的團隊的一員。我期待向您通報我們在未來幾個季度的持續進展。

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

這樣，接線員，您就可以開始提問。

(Operator Instructions) Our first question comes from the line of Steph Wissink with Jefferies.

（操作員說明）我們的第一個問題來自 Steph Wissink 和 Jefferies 的電話。

Mandy, this question is for you. If I look at the first quarter and I annualize your EBITDA run rate, it would put the number close to the kind of $58 million versus your guidance, which at the midpoint is about $48 million. So could you just help us bridge that $10 million of whether it's conservatism or some spending that you haven't done that you plan to do? How should we think about the delta versus the run rate?

曼迪，這個問題是問你的。如果我查看第一季度並將您的 EBITDA 運行率按年計算，則該數字接近 5800 萬美元，而您的指導值的中值約為 4800 萬美元。那麼，您能否幫助我們彌補這 1000 萬美元，無論是保守主義還是您計劃中尚未完成的一些支出？我們應該如何考慮增量與運行率？

And then Tarang, if I could just throw one in for you as well. Just contextually, if we look at track channel data, and we look at what your guidance would imply, how comfortable are you that you'll have enough inventory in the channel to keep the momentum going with respect to takeaway and consumption?

然後塔朗，如果我也能為你扔一個的話。就上下文而言，如果我們查看跟踪渠道數據，並查看您的指導意味著什麼，您對渠道中擁有足夠的庫存以保持外賣和消費的勢頭有多滿意？

All right, Steph. So I'll take the first part of that question. So when looking at Q1, we really had some good mix from the store closures and marketing. As we have said previously, those 2 for the year will offset one another. We didn't quite get to that 12% level in Q1 with marketing. So I would say that would be a piece that you'd have to peel back, if you're trying to run-rate some things forward.

好吧，斯蒂芬。所以我將回答這個問題的第一部分。因此，在第一季度，我們確實從商店關閉和營銷中得到了一些很好的組合。正如我們之前所說，今年的這兩項將相互抵消。我們在第一季度的營銷方面並未完全達到 12% 的水平。所以我想說，如果你想向前推進一些事情，那你就必須剝離掉這一部分。

Additionally, our margin rate, if you recall, with the closure of our stores, we said that our margin rate on the year will naturally be about 100 basis points lower. Well, in fact, this quarter, we had margin rates flat to last year. So we were able to recoup some gains through FX and the vendor concessions and things like that, that helped to keep margin rate in line.

另外，我們的保證金率，如果你還記得的話，隨著我們商店的關閉，我們說我們今年的保證金率自然會降低100個基點左右。事實上，本季度我們的利潤率與去年持平。因此，我們能夠通過外彙和供應商讓步等方式收回一些收益，這有助於保持保證金率穩定。

So I would say as you go back into your model, I would still say the 100 basis points from the store closures, you should keep in there as a downside on the margin rate. And then also, I would say that on the year, we do plan to spend closer to that 12% on the marketing just given the early success that we've seen.

所以我想說，當你回到你的模型時，我仍然會說商店關閉帶來的 100 個基點，你應該保留在那裡作為利潤率的下行因素。而且，我想說，鑑於我們已經看到的早期成功，今年我們確實計劃在營銷上花費接近 12% 的費用。

And then on your second question, Steph, we are pleased with the strength that we're seeing in track channel data and picking up share and are very comfortable in terms of our ability to having enough inventory to meet demand that we've always had an approach where we carry enough inventory and have enough of a planning horizon where we can bring that inventory in. And our customers are very efficient in that manner as well. So we feel good right now in terms of our ability to continue to meet demand.

然後，關於你的第二個問題，斯蒂芬，我們對我們在跟踪渠道數據和份額增長方面看到的實力感到高興，並且對我們擁有足夠庫存來滿足我們一直擁有的需求的能力感到非常滿意在這種方法中，我們擁有足夠的庫存，並且有足夠的規劃範圍，我們可以將這些庫存引入。我們的客戶在這方面也非常高效。因此，我們現在對繼續滿足需求的能力感到滿意。

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 price increases, your -- what was your approach to just trying to optimize the 1/3 of the SKUs that you picked? And what are your thoughts in terms of how price increases may interplay with the level of in-stocks that you have? And how satisfied are you with in-stock levels? Has that also relates to Project Unicorn? Would love your thoughts.

關於價格上漲，您嘗試優化您選擇的 1/3 SKU 的方法是什麼？您對價格上漲與庫存水平如何相互作用有何看法？您對庫存水平的滿意度如何？這也和獨角獸計劃有關嗎？會喜歡你的想法。

Sure. Oliver, this is Tarang. So our approach on pricing was really go SKU by SKU and really analyze each SKU to see kind of where competitive set manufacturer and who else might face pricing pressure, in addition to taking a look at where do we have the best value equation. So we really took a pretty -- and we've had a long time kind of to look at this robust approach of kind of going by each SKU in seeing where do we have to make most room, and we took pricing on those SKUs.

當然。奧利弗，這是塔朗。因此，我們的定價方法實際上是逐個SKU 進行分析，並真正分析每個SKU，以了解有競爭力的設備製造商以及其他誰可能面臨定價壓力，此外還看看我們在哪裡擁有最佳價值等式。因此，我們確實花了很長時間來研究這種穩健的方法，即按每個 SKU 來查看我們必須在哪裡騰出最多的空間，並且我們對這些 SKU 進行了定價。

In terms of the in-stock levels, I feel pretty good about kind of where we're trending so far this year in terms of our ability to meet in-stocks. Certainly, pricing will result in averaging at retails going up offset by units, and so I wouldn't expect it to have a major impact on in-stock levels. I think those will stay healthy. And then the last thing I would tell you is it's a balanced approach. So we did -- we're not pricing fully to the tariffs mainly because we also have FX as well as the cost savings that we outlined on our call in terms of being able to balance that approach to not always pass through.

就庫存水平而言，我對今年迄今為止我們滿足庫存能力的趨勢感到非常滿意。當然，定價將導致平均零售量的上升被單位所抵消，因此我預計它不會對庫存水平產生重大影響。我認為這些會保持健康。我要告訴你的最後一件事是這是一種平衡的方法。所以我們這樣做了——我們沒有完全按照關稅定價，主要是因為我們還有外匯，以及我們在電話會議上概述的成本節約，能夠平衡這種方法，使其不總是通過。

Okay. And just to follow up regarding Beauty Squad. It was interesting in terms of your thoughts about making tweaks to that program as well as capturing more data from the wholesale purchases through the -- your partners. So what kind of changes needed to be made? And where do you see that program heading to drive more engagement, et cetera?

好的。只是為了跟進美容小隊的情況。有趣的是，您對對該程序進行調整以及通過您的合作夥伴從批發採購中捕獲更多數據的想法。那麼需要做出什麼樣的改變呢？您認為該計劃將在哪些方面推動更多參與度等？

This is Tarang again. We've been really pleased with Beauty Squad. I mean the 1.3 million members we have, I think we've shared previously, come to our site more often, spend more and are more loyal to the brand. And so being able to enhance that program and kind of go from kind of a point and dollar system that many of our members wanted as well as the ability to connect their purchases. We believe it really takes us to a new level on Beauty Squad, and we look forward to continue to tell you kind of how we're able to better personalize their consumer experience and share perhaps more stats in terms of what it's doing for us. But it is a pretty big milestone in our loyalty program and one that we're very excited about given our presence in large national retailers as well as our key site.

這又是塔朗。我們對美麗小隊非常滿意。我的意思是，我們擁有 130 萬會員，我想我們之前已經分享過，他們更頻繁地訪問我們的網站，花費更多，並且對品牌更加忠誠。因此，能夠增強該計劃，並從我們許多會員想要的積分和美元系統以及連接他們的購買的能力開始。我們相信這確實將我們的Beauty Squad 提升到了一個新的水平，我們期待繼續告訴您我們如何能夠更好地個性化他們的消費者體驗，並分享更多關於它為我們所做的事情的統計數據。但這是我們忠誠度計劃中的一個相當大的里程碑，鑑於我們在大型全國零售商以及我們的關鍵網站中的存在，我們對此感到非常興奮。

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

我們的下一個問題來自 Bill Chappell 和 SunTrust Robinson Humphrey 的對話。

Tarang, can you give us just a sense of where Project Unicorn is? I mean do you feel like we're seeing 50%, 75% of the benefits? Is it -- are there meaningful chunks to up stores still kind of convert? And are you planning on doing that in the back half of the year?

Tarang，您能給我們介紹一下獨角獸計劃在哪裡嗎？我的意思是，您覺得我們看到了 50%、75% 的好處嗎？是不是 - 是否有有意義的部分來增加商店仍然可以進行轉換？您打算在今年下半年這樣做嗎？

Bill, yes, we feel great about Project Unicorn and where we stand. So Project Unicorn is our major shelf packaging and product initiative that has multiple phases. So the first phase has been executed with the majority of our volume at national retail customers where we were able to get new items, better packaging, better navigation particularly to our market-leading segments. We feel good about that, and we're obviously seeing that in track numbers that you're able to track.

比爾，是的，我們對獨角獸計劃和我們的立場感覺很好。因此，獨角獸項目是我們主要的貨架包裝和產品計劃，分為多個階段。因此，第一階段的大部分銷量都是在全國零售客戶中完成的，我們能夠獲得新的商品、更好的包裝、更好的導航，特別是針對我們的市場領先細分市場。我們對此感覺很好，並且我們顯然在您能夠跟踪的曲目數量中看到了這一點。

On Phase 2, which is currently being implemented, we're applying Project Unicorn to our brush and tools business, which is a pretty big segment for us.

在目前正在實施的第二階段，我們將獨角獸計劃應用於我們的畫筆和工具業務，這對我們來說是一個相當大的部分。

And then Phase 3 really impacts the spring of 2020 sets, where we'll get even more new products on and continue to make enhancements to our visual merchandising approach, particularly in regards of making sure consumers are able to find our key product that are first-to-mass products. So I think you're going to continue to hear us talk about Unicorn for quite some time mainly because of the results we're seeing in the market.

然後，第三階段真正影響 2020 年春季系列，我們將推出更多新產品，並繼續增強我們的視覺營銷方法，特別是在確保消費者能夠首先找到我們的關鍵產品方面- 走向大眾化的產品。因此，我認為您將在相當長的一段時間內繼續聽到我們談論獨角獸，主要是因為我們在市場上看到的結果。

Got it. And then Mandy, just the Chinese yuan obviously has gone favorable even -- and more so in the past just couple of weeks. Didn't know what you're expecting or what your modeling in terms of how to fix your cost of goods sold through the remainder of the year.

知道了。然後曼迪，人民幣顯然已經變得有利了——在過去的幾周里更是如此。不知道您的期望是什麼，也不知道您在如何確定今年剩餘時間內銷售的商品成本方面的模型是什麼。

Yes. So you're right, it had some upside there and we're using that as an offset to the tariffs. And so that's a part of our whole toolkit to help us offset the tariffs.

是的。所以你是對的，它有一些好處，我們用它來抵消關稅。因此，這是我們整個工具包的一部分，可以幫助我們抵消關稅。

Got it. But I mean you put the price increases through before some of this move. So I could maybe read that it's a little bit of a benefit or cushion?

知道了。但我的意思是，你在採取一些行動之前就先提價了。所以我也許可以讀到這是一點好處或緩衝？

No. Because when we implemented the price increases before, that additional 10% came out on brushes and tools. So I would say that we're all -- we're using it as a part of our toolkit and -- as we address tariffs.

不。因為我們之前提價的時候，額外的10%是刷子和工具的。所以我想說，當我們解決關稅問題時，我們都將其用作我們工具包的一部分。

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。

So if you can just elaborate a little bit more on the 2020 guide. I guess in history, you've based your guidance with no additional shelf or no additional display. So I was wondering if that's the same practice you're embedding here? Any particular for the new -- I understand there's obviously puts and takes on the timing of Project Unicorn and some of this innovation, but the Poreless Primer and Jelly Pop as you called out in the prepared remarks, so it seems to me it's too conservative using -- assuming some of the elasticity that Mandy discussed. So I was wondering if you can elaborate more on packets, the guide. And also if you can squeeze a little bit of the international trends, if you can tell us?

因此，您能否詳細說明一下 2020 年指南。我想在歷史上，你的指導是基於沒有額外的架子或沒有額外的展示。所以我想知道這是否與您在這裡嵌入的做法相同？對於新產品有什麼特別之處——我知道獨角獸計劃和一些創新的時間安排顯然有不同之處，但正如你在準備好的評論中所說的，無孔底漆和果凍流行，所以在我看來，它太保守了使用——假設曼迪討論過的一些彈性。所以我想知道您是否可以詳細說明數據包和指南。另外，您是否可以了解一點國際趨勢，可以告訴我們嗎？

Andrea, okay, so I'll go ahead and take the first part of that, and I'll pass it to Tarang to talk the international piece. So in terms of if the guide is conservative or not, so I would say that my original guidance was down 4% to down 8% last quarter when we came out and had our call and from that, we've taken it up to flat to down 4%. So certainly, reflecting some of the momentum that we're seeing in the business.

安德里亞，好的，我將繼續講第一部分，然後我將把它交給塔朗來談論國際部分。因此，就指導是否保守而言，我想說，當我們出來並接到電話時，我最初的指導上季度下降了 4％ 至 8％，從此，我們將其調整為持平下降 4%。當然，這反映了我們在該業務中看到的一些勢頭。

But as I think about the price increases that we've just taken, we do need time to see how that plays out and how that impacts volume. So we're taking a balanced approach with the guidance. I would call it, more balanced than I would, conservative.

但當我想到我們剛剛採取的價格上漲時，我們確實需要時間來看看其效果如何以及這如何影響銷量。因此，我們在指導下採取平衡的方法。我會稱其為保守派，比我更平衡。

And no shelf space increases, right? No additional shelf?

而且貨架空間不會增加，對吧？沒有額外的架子嗎？

No shelf space other than what we've already previously disclosed in terms of we have been picking up space at Ulta in a subset of their doors. We have been rolling out the brand in Walgreens and Boots in the U.K.

除了我們之前已經披露過的，我們在 Ulta 的一部分門上佔用了空間之外，沒有任何貨架空間。我們一直在英國的 Walgreens 和 Boots 推出該品牌。

And so just those are the 2 things that we've previously disclosed. We're, right now, in this time and year, in conversations with our retailers for what 2020 -- calendar 2020 shelf sets look like and we usually talk about that on one of the future calls in terms of how and particularly when we set our guidance on terms of, well, how that's progressing. But obviously, we're in a very strong position right now both in terms of our business momentum relative to the category, the level of innovation we have and how we're engaging consumers.

這些就是我們之前披露的兩件事。現在，在今年的這個時候，我們正在與我們的零售商討論 2020 年日曆架套裝的樣子，我們通常會在未來的一次電話會議上討論如何設置以及特別是何時設置。我們對進展情況的指導。但顯然，無論是在我們相對於該類別的業務勢頭、我們的創新水平以及我們如何吸引消費者方面，我們現在都處於非常有利的地位。

That maybe relates to your last question, which is how we're doing internationally. We continue to be pleased with what we're seeing internationally. I would say our probably core focus country right now is the U.K.

這可能與你的最後一個問題有關，即我們在國際上的做法。我們仍然對國際上所看到的情況感到滿意。我想說，我們現在可能的核心關注國家是英國。

You heard me talk about kind of the U.K. Daily Mail calling our Poreless Putty Primer the best primer ever. We also have great momentum, if I think about our longest-standing retail customer there is Superdrug. We have very strong comps at Superdrug. Boots is rolling up the brand as I mentioned previously. And our own site in the U.K., our elfcosmetics.com site is exhibiting very strong growth. So it gives us great hope in terms of our continued rollout internationally. But we are taking a similar disciplined approach as we did in the U.S. So we are currently testing the brand in a number of retailers in Germany and also we're very excited about our early days in China e-commerce and in our ability to kind of sell there and maintain our cruelty-free status.

您聽到我談到英國《每日郵報》稱我們的無孔膩子底漆是有史以來最好的底漆。我們也有很大的發展勢頭，如果我想到我們歷史最悠久的零售客戶的話，那就是 Superdrug。我們在 Superdrug 擁有非常強大的競爭優勢。正如我之前提到的，Boots 正在捲起這個品牌。我們在英國的 elfcosmetics.com 網站也呈現出非常強勁的增長勢頭。因此，這給我們在國際上繼續推廣帶來了很大的希望。但我們正在採取與在美國類似的嚴格方法。因此，我們目前正在德國的一些零售商中測試該品牌，而且我們對我們在中國電子商務的早期發展以及我們的能力感到非常興奮在那裡出售並保持我們的無殘忍狀態。

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。

This is Kimberly on for Mark. We had a quick question just on price increases. Are those already on the shelf? And can we see those in the most recent 2-week scanner data? Or is that later to come? And then also are the price increases consistent with what your competitors have done?

這是金伯利為馬克代言的。我們有一個關於價格上漲的簡短問題。那些已經上架了嗎？我們可以在最近兩週的掃描數據中看到這些嗎？還是以後會發生？另外，價格上漲是否與競爭對手的做法一致？

Kimberly, this is Tarang. Let me take that. So what we've reflected right now in pricing is we led on elfcosmetics.com. So if you go on elfcosmetics.com, you will see higher prices than even some of the retailers. We're in current implementation with a number of our retailers. So at some retailers you'll see price already reflected, others you won't. What I can tell you is we will not ship product at unless it's at the higher price, SPOs come into us. And so we're in an implementation phase. And I would say related to this scanner question, I don't think you're going to see that much of it in the scanner quite yet. But over the next couple of months certainly, you'll see the pricing reflected. And as I mentioned earlier, we would expect and you will see average unit retails go up and units go down related to that.

金伯利，這是塔朗。讓我來吧。因此，我們現在在定價方面所反映的是我們在 elfcosmetics.com 上的領先地位。因此，如果您訪問 elfcosmetics.com，您會看到比某些零售商更高的價格。我們目前正在與一些零售商合作實施。因此，在一些零售商處，您會看到已經反映的價格，而在其他零售商處則不會。我可以告訴您的是，除非 SPO 進入我們的更高價格，否則我們不會以更高的價格發貨。所以我們正處於實施階段。我想說，與這個掃描儀問題相關，我認為您還不會在掃描儀中看到那麼多內容。但在接下來的幾個月裡，您肯定會看到定價得到反映。正如我之前提到的，我們預計，你會看到平均單位零售量上升，單位零售量隨之下降。

Great. And then just one more if I can. In the scanner data, we've seen that year-to-date skin care sales are -- it's almost as big as full year for 2018. So do you have any insights on how big that can get in time? What's driving it? Is it all really trial and discovery with the brand? Or do you have any insights around like repeat purchases and loyalty of the brand?

偉大的。如果可以的話，然後再來一張。在掃描儀數據中，我們看到今年迄今為止的護膚品銷售額幾乎與 2018 年全年一樣大。那麼，您對隨著時間的推移可以發展到多大有什麼見解嗎？是什麼在驅動它？這一切真的都是品牌的嘗試和發現嗎？或者您對重複購買和品牌忠誠度有什麼見解嗎？

Sure. We're really pleased with skin care. It's a major strategic kind of imperative of ours in terms of kind of within our overall portfolio. As you know, global skin care is bigger than global color cosmetics, the category trends in skin care at least over the last couple of years have been stronger. We're no exception in terms of being able to kind of ride the strength of the category but maybe even more so given the level of innovation we have. So what's really driving our skin care is the -- our unique ability to bring prestige quality at extraordinary value. And while skin care is higher or in averaging at retail basis in our color cosmetics are, they still come into tremendous value relative to some of the key prestige and mass players in the category. I'm particularly excited with the success we've had this year on Hello Hydration! is our first entry into kind of our hydration creams, and that's done extremely well. And so I think you're going to continue to see momentum on skin care, particularly as we expand distribution. Skin care started with the Target. As I'd mentioned on the call last quarter, Ulta has now taken skin care full chain off of a successful task, and we continue to roll out skin care to more customers. So I personally am very bullish on skin care for the future, but we look forward to continue to talk about it.

當然。我們對皮膚護理非常滿意。就我們的整體投資組合而言，這是我們的一項重大戰略任務。如您所知，全球護膚品比全球彩妝規模更大，至少在過去幾年，護膚品類趨勢更加強勁。就能夠利用該類別的優勢而言，我們也不例外，但考慮到我們擁有的創新水平，情況可能更是如此。因此，真正推動我們護膚的因素是——我們以非凡的價值帶來尊貴品質的獨特能力。儘管我們的彩妝中護膚品的價格較高或平均零售價較高，但相對於該類別中的一些主要聲譽和大眾參與者而言，它們仍然具有巨大的價值。我對今年我們在 Hello Hydration 上取得的成功感到特別興奮！這是我們第一次推出保濕霜，而且做得非常好。因此，我認為您將繼續看到皮膚護理領域的勢頭，特別是當我們擴大分銷範圍時。皮膚護理從 Target 開始。正如我在上個季度的電話會議上提到的，Ulta 現在已經完成了整個護膚鏈條的成功任務，並且我們將繼續向更多客戶推出護膚產品。所以我個人非常看好皮膚護理的未來，但我們期待繼續討論它。

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 question is around the digital business that was up really nice double-digit growth. Can you just talk about what you think is really driving some of the improvements there? And then is the double-digit pace kind of how we should see that business kind of folding to the balance of the year?

我想我的問題是圍繞數字業務的，該業務實現了非常好的兩位數增長。您能否談談您認為真正推動這些改進的因素是什麼？那麼，我們應該如何看待業務以兩位數的速度折疊到今年的餘額？

And then, I guess, Mandy, for you, just going back to the Q1 beat versus the guide, just looking at the top line $5 million beat, $11 million lift to the full year. I recognize you're not looking at incremental shelf space, but should we just assume the slightly second half weighted that's just based on the Walmart -- or excuse me, the Ulta as well as the Boots kind of business that you're transacting with and kind of rolling out there, just trying to understand that.

然後，我想，曼迪，對你來說，只是回到第一季度的節拍與指南，看看營收 500 萬美元的節拍，全年提升 1100 萬美元。我知道你沒有考慮增量的貨架空間，但我們是否應該假設後半部分的權重只是基於沃爾瑪——或者對不起，Ulta 以及你正在與之交易的 Boots 類型的業務並在那裡展開，只是試圖理解這一點。

Erinn, this is Tarang. I'll take your first question, and then Mandy will take the second. So on our digital business, what's -- we're also really pleased with the double-digit growth we're seeing in traffic conversion and sales. And what I tell you is driving there are the strategic imperatives I described earlier, specifically kind of our step-up in marketing and digital support, engaging more consumers and influencers and bringing attention to the brand.

艾琳，這是塔朗。我將回答你的第一個問題，然後曼迪將回答第二個問題。因此，在我們的數字業務方面，我們也對流量轉化和銷售的兩位數增長感到非常滿意。我告訴你的是我之前描述的戰略要務，特別是我們在營銷和數字支持方面的加強，吸引更多的消費者和有影響力的人，並引起人們對品牌的關注。

I would say equally important is the focus of that spend also being on our key first-to-mass products. So I highlighted a couple of them, whether it be the Poreless Putty Primer or our Camo Concealers or even some of our limited-edition exclusives like our Jelly Pop. Those are driving real consumer interest in the brand, and we're amplifying that kind of, I've called it, through our surround sound approach, which basically brings more consumers to the site. And then lastly, although it's not as sexy to talk about, I've seen many of the improvements we've made from a technology standpoint digitally. I talked about kind of some of the technology underpinning kind of our revamp Beauty Squad program. Other things that we're doing there is also helping us with our conversion and some of the personalization initiatives. So there's quite a bit going on digitally. I mean obviously the digitally native brand, that's always been important to us, and it's great to step it up even to a different level.

我想說，同樣重要的是，這筆支出的重點也集中在我們的關鍵首發產品上。因此，我重點介紹了其中的幾個產品，無論是 Poreless Putty Primer 還是我們的 Camo Concealers，甚至是我們的 Jelly Pop 等限量版獨家產品。這些正在推動消費者對該品牌的真正興趣，我們正在通過我們的環繞聲方法來放大這種我稱之為的興趣，這基本上會吸引更多的消費者來到該網站。最後，雖然談論起來並不那麼性感，但我已經看到了我們從數字技術角度所做的許多改進。我談到了一些支持我們改造 Beauty Squad 計劃的技術。我們在那裡做的其他事情也幫助我們進行轉換和一些個性化舉措。因此，數字化方面正在發生相當多的事情。我的意思顯然是數字原生品牌，這對我們來說一直很重要，而且很高興將其提升到一個不同的水平。

And on the second part of your question, Erinn, on how to think about the balance of the year. So I think I mentioned this earlier, but as you think about Q2, Q3, Q4, we do have the pricing that just rolled out at the end of July. So we are waiting to see how that impacts volume, certainly the space gains that Tarang mentioned will help to offset some of that and as well as that seasonal pipeline that we mentioned that we were cycling. So that's kind of how the balance of the year should frame up within our guidance.

艾琳，關於你問題的第二部分，關於如何思考今年的餘額。所以我想我之前提到過這一點，但當你想到第二季度、第三季度、第四季度時，我們確實有 7 月底剛剛推出的定價。因此，我們正在等待，看看這對數量有何影響，當然，塔朗提到的空間收益將有助於抵消其中的一些影響，以及我們提到的我們正在騎自行車的季節性管道。這就是我們指導下的今年餘額的結構。

Okay. And then if I could just add one on Jelly Pop. I mean it feels like that's been a really successful launch out of the gate. Can you just talk about if it's attracting new consumer to the e.l.f. line?

好的。然後我可以在 Jelly Pop 上添加一個嗎？我的意思是，感覺這是一次非常成功的發布。您能否談談它是否吸引了新消費者加入 e.l.f.？線？

Sure. So we love what we've seen on Jelly Pop. I talked about some of the engagement numbers on Jelly Pop, both in terms of that surround sound kind of approach to our marketing and digital, how it's attracted a number of attention from a number of influencers, who, in turn, kind of I think reached over 58 million just on Instagram alone as well as the level of engagement. I'd see it's just another example of the strength we have in our innovation pipeline and being able to amplify that pipeline.

當然。所以我們喜歡在《Jelly Pop》中看到的東西。我談到了 Jelly Pop 上的一些參與數字，無論是在我們的營銷和數字方面的環繞聲方式，還是它如何吸引了一些有影響力的人的關注，我認為這些人反過來，僅在Instagram 上的關注度和參與度就超過5800 萬。我認為這只是我們在創新渠道中擁有的實力以及能夠擴大該渠道的另一個例子。

And to your specific question on new users, we've seen with all of these big new launches, whether it be Poreless Putty Primer, Jelly Pop, Camo Concealers. They bring significantly more new users to the franchise. I think the percentage that we've talked previously on Poreless Putty Primer and pushing a similar trend on Jelly Pop is, I think, 70% of the traffic we're getting on the site related to those products are new consumers, so we feel really good about that as well.

至於你關於新用戶的具體問題，我們已經看到了所有這些大型新產品的發布，無論是 Poreless Putty Primer、Jelly Pop、Camo Concealers。他們為特許經營帶來了更多的新用戶。我認為我們之前在Poreless Putty Primer 上討論過的百分比以及在Jelly Pop 上推動類似趨勢的百分比是，我認為，我們在與這些產品相關的網站上獲得的流量中有70% 是新消費者，所以我們覺得對此也非常滿意。

Our next question comes from the line of Rupesh Parikh with Oppenheimer & Co.

我們的下一個問題來自 Rupesh Parikh 與 Oppenheimer & Co. 的對話。

This is actually Erica Eiler on for Rupesh. So I was wondering if you could comment on what you're seeing in the mass category lately in terms of overall category growth rates?

這實際上是艾麗卡·艾勒 (Erica Eiler) 為魯佩什 (Rupesh) 配音。所以我想知道您是否可以對您最近在大眾類別中看到的整體類別增長率發表評論？

Yes. This is Tarang. So I'd say the mass category continues to be soft in color cosmetics and quite strong in skin care. And that's a continuation for a trend we've now seen for quite some time.

是的。這是塔朗。所以我想說，大眾品類在彩妝方面仍然表現疲軟，而在護膚品方面則相當強勁。這是我們已經看到相當長一段時間的趨勢的延續。

I'll be honest with you, I'm surprised how long mass color cosmetics has been soft. So our point of view is we continue to take share or hope to continue to take share kind of in that market based on the strategic imperatives I outlined.

老實說，我很驚訝大眾彩妝這麼長時間以來一直表現疲軟。因此，我們的觀點是，根據我概述的戰略要務，我們將繼續佔據該市場的份額或希望繼續佔據該市場的份額。

Okay. Great. And then we're seeing more and more personalization popping up across the beauty space and with beauty brands. You talked a little bit about the scanner receipts, how that enable you to leverage more personalization. Can you maybe talk about how you're capitalizing on this trend as we sit here today?

好的。偉大的。然後我們看到越來越多的個性化在美容領域和美容品牌中出現。您談到了掃描儀收據，以及它如何使您能夠利用更多個性化服務。今天我們坐在這裡，您能談談您是如何利用這一趨勢的嗎？

Sure. So if I look at our own migration on personalization, it first came from some of the technology I talked about that had better algorithms and better approach is particularly as we re-platformed our site, and we're able to tap into other capabilities, be able to just get better product recommendations and better learning algorithms to figure out kind of ways than what you bought [what all consumers] might like. Going from there to actually getting much better consumer profiles to be able to customize recommendations to what the behavior of that particular consumer is, I am especially excited now that we're able to tie that consumer data together with their purchases at large national retailers as well that will be even that much better in terms of being able to understand our consumers, and really just be able to make better -- not only recommendations but also curate better products in terms of what would meet their needs as well as the overall experience. I mean this is a connective consumer journey, so it also goes to kind of what messages are we serving up based on what we are needed, and we've had some experience even in our current campaign where the content were just providing much greater digital content. Where if you love animals, we can get one of our cruelty-free messages if you really care. A lot about our value, our ability, to be able to customize some of the core brand attributes. So we're -- I would say we still have a long way to go but I'm pleased with our initial progress.

當然。因此，如果我看看我們自己在個性化方面的遷移，它首先來自我談到的一些技術，它們具有更好的算法和更好的方法，特別是當我們重新構建我們的網站平台時，我們能夠利用其他功能，能夠獲得更好的產品推薦和更好的學習算法來找出比你購買的東西（所有消費者）可能喜歡的方式。從那裡到真正獲得更好的消費者檔案，以便能夠根據特定消費者的行為定制建議，我特別興奮，因為我們能夠將消費者數據與他們在大型全國零售商的購買聯繫起來嗯，就能夠了解我們的消費者而言，這會更好，而且真的能夠做得更好——不僅是推薦，而且還可以在滿足他們的需求以及整體體驗方面策劃更好的產品。我的意思是，這是一個連接消費者的旅程，所以它也涉及我們根據需要提供什麼信息，即使在我們當前的活動中，我們也有一些經驗，其中內容只是提供更大的數字化內容。如果您熱愛動物，如果您真的關心的話，我們可以收到我們的無殘忍信息之一。很多關於我們的價值，我們的能力，能夠定制一些核心品牌屬性。所以我們——我想說我們還有很長的路要走，但我對我們的初步進展感到滿意。

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。

We noticed your product on shelves at Kohl's. Can you comment on during the entire chain, and also this is interesting because it's a mass-seized retail rather than MAP. So can you like give some color on how your assortments differ than Kohl's versus at the mass retailers?

我們在 Kohl's 的貨架上註意到了你們的產品。你能評論一下整個鏈條嗎？這很有趣，因為它是一個大規模的零售而不是 MAP。那麼，您能否詳細說明一下您的商品種類與 Kohl's 與大眾零售商有何不同？

Linda, this is Tarang. So we've been in Kohl's starting last year, we entered. And it was really being approached by them as they did a survey of brands that their consumers wanted to see, e.l.f. popped in that assessment. And so we've been in Kohl's, we are in full chain, and we're pleased with our business and our partnership together. It's part of our -- as I look from -- channel by channel, it's part of what I would describe as a specialty channel.

琳達，這是塔朗。所以我們從去年開始就進入了 Kohl's，我們進入了。當他們對消費者想要看到的品牌進行調查時，他們確實在接觸這個問題，e.l.f.出現在該評估中。因此，我們一直在科爾百貨，我們擁有完整的連鎖店，我們對我們的業務和我們的合作夥伴關係感到滿意。這是我們的——正如我所看到的——逐個頻道的一部分，它是我所說的專業頻道的一部分。

Obviously, our biggest specialty channel player is Ulta Beauty. But we have been historically in Old Navy and other specialty players. And I would say what we ask every retailer to do regardless of channel is carry some of our core items.

顯然，我們最大的專業渠道參與者是 Ulta Beauty。但我們歷史上一直是老海軍和其他專業球員。我想說的是，無論渠道如何，我們要求每個零售商做的就是銷售我們的一些核心商品。

So a majority of the items that Kohl's would carry would be similar to other retailers. And then each retailer likes to have some that they uniquely carry or be able to kind of merchandise and drive, and Kohl's is no different than that. But again, it's still relatively early, we're still in our first year at Kohl's, and we're pleased with what we see.

因此，科爾百貨出售的大部分商品與其他零售商相似。每個零售商都喜歡擁有一些他們獨特的商品，或者能夠分類和銷售商品，Kohl's 也不例外。但同樣，現在還相對較早，我們仍處於在科爾的第一年，我們對所看到的感到滿意。

Our next question comes from the line of Bonnie Herzog with Wells Fargo.

我們的下一個問題來自邦妮·赫爾佐格與富國銀行的對話。

I had a quick follow-on question on your guidance. I guess I'm wondering if there's any upside to your top line guidance. Would you guys consider reinvesting it? Or let it flow through to the bottom line?

我對您的指導有一個快速的後續問題。我想我想知道您的頂線指導是否有任何好處。你們會考慮再投資嗎？還是讓它流到底線？

Yes. So the guidance, Bonnie, I would say again we've increased from down 4% to 8% up to the flat to negative 4%, and that's kind of where we see the world today. Certainly, if there's upside to sales, if things start to outpace, we are making those decisions as we see momentum in the business and would say that our guidance is as we see the world today.

是的。所以，邦妮，我要再說一遍，我們的指導方針已經從下降 4% 增加到 8%，一直到持平到負 4%，這就是我們今天看到的世界。當然，如果銷售有上升空間，如果情況開始超出預期，我們會在看到業務勢頭時做出這些決定，並會說我們的指導方針就是我們當今所看到的世界。

Okay. And then I had a question circling back on tariffs. I just was wondering if you guys could talk a little bit further on the pricing that you took, and I guess what I'm trying to understand is the magnitude, the actual percentage price increase that you mentioned that you've taken to offset the increase in tariffs. And I'm thinking about the contracts because I think it's the most you've ever taken. You haven't taken a lot of pricing historically, so I guess I'm trying to understand what could be the elasticity, how you think this will stick. I know you mentioned it's early but any color on that or confidence of why you think it will be absorbed will be helpful. And then wondering if you've been successful in getting any vendor concessions. And then finally, what's your ability or maybe willingness to move manufacturing out of China?

好的。然後我有一個關於關稅的問題。我只是想知道你們是否可以進一步談談你們所採取的定價，我想我想了解的是你們提到的為抵消價格上漲而採取的實際價格上漲百分比。關稅增加。我正在考慮合同，因為我認為這是你拿過的最多的合同。您歷史上沒有進行大量定價，所以我想我正在嘗試了解彈性是什麼，您認為這將如何持續。我知道你提到現在還為時過早，但是任何關於它的顏色或你認為它會被吸收的原因的信心都會有幫助。然後想知道您是否已成功獲得供應商的讓步。最後，您有什麼能力或意願將製造業遷出中國？

Okay. So I'll take the first one and then we'll pass it over to Tarang. So on the pricing piece. So in regards to tariffs, we really have the 3 levers that we have to pull. We have vendor concessions or cost savings, FX and then pricing. And so we're not going to give the percentage increase that we took on pricing for competitive reasons but I will echo what Tarang said earlier is that we did not recoup the full impact of the tariff through pricing. So we took pricing on about 1/3 of our SKUs and that is one of the leverage within the toolkit to help us offset the tariff impact.

好的。所以我會選擇第一個，然後我們會將其傳遞給塔朗。所以在定價方面。因此，在關稅方面，我們確實擁有必須使用的 3 個槓桿。我們有供應商優惠或成本節約、外彙和定價。因此，出於競爭原因，我們不會給出我們在定價上增加的百分比，但我會回應塔朗之前所說的，我們沒有通過定價來彌補關稅的全部影響。因此，我們對大約 1/3 的 SKU 進行了定價，這是工具包中幫助我們抵消關稅影響的槓桿之一。

Yes. And to your point in terms of their ability to stick amid -- I think we're hearing already a number of competitors also announcing kind of pricing and having [bedding] consumer for a very long time, having done dozens of price increases. This is about as straightforward as it goes from a pricing standpoint. There is a known kind of external kind of tariff or tax, most people will pass us through. I like our approach of being quite balanced in how we're doing it. We're not putting it 100% on pricing. We are relying on FX as well as our cost savings to do it. So I like the approach but as Mandy says, it's also one of the things that's balancing our guidance, the strength that you're currently seeing along with kind of the pricing and [move the] $10 million of pipeline and see some of that were cycling next year.

是的。至於你的觀點，就他們堅持下去的能力而言——我認為我們已經聽到許多競爭對手也宣布了某種定價，並在很長一段時間內吸引了消費者，已經進行了數十次提價。從定價的角度來看，這很簡單。有一種已知的外部關稅或稅收，大多數人都會通過。我喜歡我們在做事時保持平衡的做法。我們不會 100% 考慮定價。我們依靠外匯以及我們節省的成本來做到這一點。所以我喜歡這種方法，但正如 Mandy 所說，這也是平衡我們的指導、您目前看到的實力以及定價的因素之一，並[移動] 1000 萬美元的管道，並看到其中一些是明年騎自行車。

And then last, in terms of our supply chain, it's one of the things we take great pride in over 15 years. We've built, I believe, the best combination of cost quality and speed in our industry. And a lot of that advantage comes from what we've been able to build in China, tariff or no tariff. And we continue to make progress and improvements in terms of our core operations there as I mentioned our lean manufacturing techniques. But in addition to that, we've always looked more globally in terms of where should we manufacture and how do we want to operate and so that includes a number of initiatives that we initiated prior to any tariff. So if I think of our automation of our distribution centers, that was done well before staying with our U.S. liquid fill plant that we're building and should have an operation by the end of our fiscal year, that was done well in advance.

最後，就我們的供應鏈而言，這是 15 年來我們引以為傲的事情之一。我相信，我們已經建立了行業中成本質量和速度的最佳組合。這種優勢很大程度上來自於我們在中國所能夠建立的東西，無論關稅還是無關稅。正如我提到的我們的精益製造技術，我們在核心業務方面繼續取得進展和改進。但除此之外，我們一直更加放眼全球，考慮我們應該在哪裡生產以及我們希望如何運營，因此這包括我們在徵收關稅之前發起的許多舉措。因此，如果我想到我們的配送中心的自動化，那是在我們正在建設的美國液體灌裝工廠之前就已經完成的，並且應該在我們的財政年度結束前投入運營，這是提前完成的。

And it really is a matter of just us continuing to get more efficient, being able to take those -- take our cost savings and make sure that we're investing in the best value equation for the consumer and the marketing that we'd like to do.

這確實是我們繼續提高效率的問題，能夠採取這些措施——節省成本，並確保我們投資於為消費者和我們想要的營銷提供最佳價值等式去做。

So I feel good about our approach, feel good about kind of where we currently stand, and then I think we'll certainly be updating people over the next couple of quarters in terms of what we see in the overall market.

因此，我對我們的方法感覺良好，對我們目前的處境感覺良好，然後我認為我們肯定會在接下來的幾個季度向人們通報我們在整個市場中看到的情況。

(Operator Instructions) We have no further questions in queue at this time. Allow me to hand the floor back over to Tarang Amin for closing remarks.

（操作員說明） 目前我們沒有其他問題在隊列中。請允許我將發言權交還給塔朗·阿明致閉幕詞。

Great. Well thanks again, everyone, for joining us. While we're still in the early days of our brand recharge, we're encouraged by the consumer and customer response and look forward to updating you on our next call. Thanks, everyone.

偉大的。再次感謝大家加入我們。雖然我們仍處於品牌復興的早期階段，但我們對消費者和客戶的反應感到鼓舞，並期待在下次電話中向您通報最新情況。感謝大家。

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

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。