elf Beauty Inc (ELF) 2022 Q3 法說會逐字稿

Good afternoon, and welcome to the e.l.f. Beauty Third Quarter Fiscal 2022 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎來到 e.l.f.美妝 2022 財年第三季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。

(presentation)

（推介會）

Thank you for joining us to discuss e.l.f. Beauty's third quarter fiscal 2022 results. I'm Melinda Fried, Head of Corporate Communications. With me are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer. 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.

感謝您加入我們討論 e.l.f. Beauty 2022 財年第三季度業績。我是梅琳達·弗里德，企業傳播主管。和我在一起的還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。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。

Since many of our remarks 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. 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.

由於我們的許多言論包含前瞻性陳述，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。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, Melinda, and good afternoon, everyone. Today, we will discuss the drivers of our Q3 results and our raised fiscal 2022 guidance. I am proud of the e.l.f. Beauty team for achieving our 12th consecutive quarter of net sales growth. We delivered Q3 net sales of $98 million, up 11% versus a year ago, and 20% on a 2-year stack basis. Adjusted EBITDA of $22 million was up 18% versus prior year. We delivered these results with a significantly smaller holiday program. As a reminder, we proactively scaled back our holiday program to prioritize container capacity for our core products, which continue to be in high demand.

謝謝梅琳達，大家下午好。今天，我們將討論第三季度業績的驅動因素以及我們上調的 2022 財年指引。我為 e.l.f 感到驕傲。美容團隊實現了連續 12 個季度的淨銷售額增長。我們第三季度的淨銷售額為 9800 萬美元，比去年同期增長 11%，按 2 年疊加計算增長 20%。調整後 EBITDA 為 2200 萬美元，比上年增長 18%。我們通過大幅縮減假期計劃來取得這些成果。提醒一下，我們主動縮減了假期計劃，優先考慮我們核心產品的集裝箱容量，這些產品的需求仍然很高。

With our continued momentum, we are raising our full year guidance, which Mandy will discuss. Our innovation, digitally led strategy, core value proposition and ability to adapt at e.l.f. speed continue to fuel our performance. In Q3, e.l.f. had 5.7% market share, up 86 basis points on a 2-year stack. For calendar year 2021, we were the only top 5 color cosmetics brand to grow share above pre-pandemic levels by a wide margin. Our relentless focus on our 5 strategic imperatives is driving results across our brand portfolio. Let me provide a few highlights from the quarter.

隨著我們持續的發展勢頭，我們正在提高全年指導，曼迪將對此進行討論。我們的創新、數字主導戰略、核心價值主張以及 e.l.f. 的適應能力。速度繼續推動我們的業績。在第三季度，e.l.f.擁有 5.7% 的市場份額，比 2 年增長了 86 個基點。 2021 年，我們是唯一一個份額大幅增長至疫情前水平以上的前 5 名彩妝品牌。我們對 5 項戰略要務的不懈關注正在推動我們品牌組合取得成果。讓我提供本季度的一些亮點。

Our first strategic imperative is to drive brand demand. We continue to find innovative ways to engage and entertain our community, moving beyond traditional beauty boundaries. This approach has driven strong ROI and business momentum. This quarter, we created our first-ever TikTok native movie to celebrate the holiday season. Big Mood, Big e.l.f.ing City recap some of the biggest TikTok trends of the year with an innovative twist. The movie garnered 400 million press impressions, over 32 million campaign views, and built upon our many firsts on the platform.

我們的首要戰略任務是推動品牌需求。我們不斷尋找創新的方式來吸引和娛樂我們的社區，超越傳統的美容界限。這種方法帶來了強勁的投資回報率和業務動力。本季度，我們製作了第一部 TikTok 原生電影來慶祝節日。 《Big Mood》、《Big e.l.f.ing City》以創新的方式回顧了今年最大的 TikTok 趨勢。這部電影獲得了 4 億次媒體曝光、超過 3200 萬次競選觀看次數，並建立在我們在該平台上的許多第一之上。

We also joined forces with Enthusiast Gaming to find the next gaming superstar. The competition called Rising Stars seeks up-and-coming creators from colleges across North America and e.l.f. is the first brand to co-create the series. This builds upon our track record of firsts while also supporting our mission of empowering others to reach for the stars. Our brand-building efforts continue to gain recognition. TikTok recently named e.l.f. to their Culture Drivers list for 2021 for our Gamers Got Talent campaign.

我們還與 Enthusiast Gaming 聯手尋找下一個遊戲巨星。這項名為“新星”的競賽旨在尋找來自北美各地大學和 e.l.f. 的嶄露頭角的創作者。是第一個共同創造該系列的品牌。這建立在我們的第一記錄的基礎上，同時也支持我們幫助他人摘星的使命。我們的品牌建設努力不斷獲得認可。 TikTok 最近被命名為 e.l.f.進入我們的《玩家達人秀》活動的 2021 年文化驅動力名單。

We are among 14 other brands that TikTok highlights is doing the best, most engaging and entertaining work on the platform. Building upon our entertainment chops, we recently teamed up with TikTok and American Idol creator, Simon Fuller, to find the next big music group. Together, we launched a search culminating the creation of a first-of-its-kind pop group called The Future X. We're working side-by-side with TikTok's vibrant, creator universe via hashtag challenges to search for makeup artists who work with the group. This collaboration represents another moment where e.l.f. is leading to bring together 2 things our community loves, beauty and music.

我們是 TikTok 強調的其他 14 個品牌之一，在該平台上做著最好、最具吸引力和娛樂性的工作。憑藉我們的娛樂實力，我們最近與 TikTok 和《美國偶像》創作者西蒙·富勒 (Simon Fuller) 合作，尋找下一個大型音樂團體。我們一起發起了一項搜索，最終創建了一個名為 The Future X 的首個流行樂隊。我們正在與 TikTok 充滿活力的創作者世界並肩工作，通過標籤挑戰來尋找工作的化妝師與小組。這次合作代表了 e.l.f. 的另一個時刻。致力於將我們社區熱愛的兩件事結合在一起：美和音樂。

Keys Soulcare, our groundbreaking lifestyle beauty brand with Alicia Keys, garnered 7 billion global press impressions this quarter. In November, Alicia dropped a much anticipated eighth album, Keys. Keys Soulcare product offerings were prominently featured as Alicia promoted the album and held special one-night-only concert events. We also celebrated the album by having it available to download on keyssoulcare.com. The buzz was timely as we recently celebrated the 1-year anniversary of keyssoulcare.com. We're incredibly proud of what we're building with this brand, which has been recognized across the industry with over 20 awards this past year.

Keys Soulcare 是我們與 Alicia Keys 合作的開創性生活方式美容品牌，本季度獲得了 70 億次全球媒體曝光。十一月，艾麗西亞發布了備受期待的第八張專輯《Keys》。艾麗西亞 (Alicia) 宣傳專輯並舉辦僅限一晚的特別音樂會活動時，Keys Soulcare 產品佔據了顯著位置。我們還通過在keysoulcare.com 上提供下載來慶祝這張專輯。最近，我們慶祝了keysoulcare.com 成立一周年，這一消息來得很及時。我們對用這個品牌打造的產品感到無比自豪，去年該品牌獲得了整個行業的認可，榮獲 20 多個獎項。

Our second strategic imperative is a major step-up in digital. Our digitally led strategy continues to serve us well with our digital consumption trends up triple digits on a 2-year stack. We continue to see a channel shift between digital and brick-and-mortar in Q3, in line with our expectations. Digital channels drove 14% of our business in Q3 as compared to 16% a year ago and 10% 2 years ago. Our follower base across social and digital platforms is now over $12 million, helping to fuel our growth. On elfcosmetics.com, approximately 50% of our shoppers in Q3 were new consumers.

我們的第二個戰略要務是數字化方面的重大進步。我們的數字主導戰略繼續為我們提供良好的服務，我們的數字消費趨勢在兩年內增長了三位數。我們繼續看到第三季度數字和實體之間的渠道轉變，這符合我們的預期。第三季度，數字渠道推動了我們業務的 14%，而一年前為 16%，兩年前為 10%。我們在社交和數字平台上的粉絲基礎現已超過 1200 萬美元，有助於推動我們的增長。在 elfcosmetics.com 上，第三季度大約 50% 的購物者是新消費者。

Our Beauty Squad Loyalty Program now has over 2.7 million members, up over 20% year-over-year. Beauty Squad is an integral source of first-party data, and we'll continue to look for ways to enhance the consumer experience. Our Keys Soulcare loyalty program called Soulcare Rewards continues to grow. Loyalty members made up 45% of sales this quarter on keyssoulcare.com. We also developed a new first in Beauty digital gifting experience on the site for the holidays. Gift givers were able to create and send a personalized video to their loved ones while gifting them Keys Soulcare care offerings.

我們的 Beauty Squad 忠誠度計劃目前擁有超過 270 萬名會員，同比增長超過 20%。 Beauty Squad 是第一方數據的重要來源，我們將繼續尋找增強消費者體驗的方法。我們的 Keys Soulcare 忠誠度計劃（稱為 Soulcare 獎勵）不斷發展。忠誠會員佔 keysoulcare.com 本季度銷售額的 45%。我們還在網站上為假期開發了全新的美容數字禮品體驗。送禮者可以製作個性化視頻並將其發送給親人，同時向他們贈送 Keys Soulcare 護理產品。

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（推介會）

Our third strategic imperative is to lead innovation. Our superpowers centered on our ability to deliver 100% cruelty-free, premium-quality beauty products at accessible price points with broad appeal, continue to resonate with consumers. e.l.f. cosmetics saw ongoing success in our core segments, brushes, primers, concealers, brows and sponges, which make up approximately half our sales. We have the #1 or 2 position in all 5 segments and continue to drive sales growth in each. We are proud of our newest holy grail innovations, which launched online at the end of Q3, and will be hitting retailer shelves in the coming weeks. Our Power Grip Primer builds upon our strength in the primer category. Its jaw-dropping value of $10 versus the Prestige equivalent at $34, already propelled it to become the #1 selling product on elfcosmetics.com and a viral sensation across social media.

我們的第三個戰略要務是引領創新。我們的超能力集中於我們能夠以平易近人的價格提供 100% 零殘忍、優質的美容產品，並具有廣泛的吸引力，持續引起消費者的共鳴。 e.l.f.化妝品在我們的核心細分市場（刷子、底漆、遮瑕膏、眉毛和海綿）上取得了持續的成功，這些產品約占我們銷售額的一半。我們在所有 5 個細分市場中均排名第一或第二，並繼續推動每個細分市場的銷售增長。我們為我們最新的聖杯創新感到自豪，該創新於第三季度末在線推出，並將在未來幾週內在零售商的貨架上上市。我們的 Power Grip 底漆建立在我們在底漆類別上的優勢之上。其 10 美元的售價令人瞠目結舌，而 Prestige 的售價為 34 美元，已經使其成為 elfcosmetics.com 上銷量第一的產品，並在社交媒體上引起轟動。

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We continue to build upon the success of our Camo franchise. We recently launched a Camo Powder Foundation in 30 shades, packaged in a sleek compact with a mirror and sponge, and priced at $11 versus its Prestige equivalent at $38. The Powder Foundation is on its way to become a top-selling holy grail.

我們將繼續在迷彩系列的成功基礎上再接再厲。我們最近推出了迷彩粉底，有 30 種顏色，採用時尚粉盒包裝，配有鏡子和海綿，售價 11 美元，而 Prestige 的售價為 38 美元。粉餅正在成為最暢銷的聖杯。

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Building upon our strength in brows and tools, we recently launched Brow Lift and an accompanying Brow Lift applicator, priced at $6 versus the Prestige equivalent at $23. The Brow Lift features an extreme hold, clear wax formula that lifts and sculpts brows for a feathered effect. This item quickly sold out online and over 15,000 e.l.f. fans signed up for Notify Me, anxiously awaiting its return.

基於我們在眉毛和工具方面的實力，我們最近推出了 Brow Lift 和配套的 Brow Lift 塗抹器，價格為 6 美元，而 Prestige 的價格為 23 美元。眉毛提拉術採用極致定型的透明蠟配方，可提升和塑造眉毛，打造羽毛般的效果。該商品很快在網上售空，銷量超過 15,000 個 e.l.f.粉絲們報名參加了《Notify Me》，焦急地等待著它的回歸。

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Our newest lip products are attracting consumers looking for a color moment. Our new Glossy Lip Stains are there to meet the call, priced at just $6 versus the Prestige equivalent at $38. They feature a unique glossy to stained finish that is long-wearing and won't transfer.

我們最新的唇部產品吸引了尋求色彩時刻的消費者。我們的新款光澤唇彩正是為了滿足這一需求，售價僅為 6 美元，而 Prestige 同等價格為 38 美元。它們具有獨特的光澤到染色表面，經久耐用且不會轉移。

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（推介會）

We remain bullish on the color category. These 4 holy grail launches are generating incredible buzz across social platforms, even before being widely available at our retailers. Skin care remains a major focus across our brand portfolio. In Q3, e.l.f. skin consumption was up 29% compared to a category that was up 9%, propelling e.l.f. Skin into the top 20 for the first time ever. Our recently launched Pure Skin line is a 3-part regimen designed to meet our consumers' daily needs. Dermatologist-developed, clean, vegan and cruelty-free. Pure Skin nurtures the skin with ingredients like oat milk and Niacinamide. The Pure Skin line initially sold out on elfcosmetics.com.

我們仍然看好顏色類別。這 4 款聖杯產品在我們的零售商處廣泛銷售之前，就在社交平台上引起了令人難以置信的轟動。護膚仍然是我們品牌組合的主要焦點。在第三季度，e.l.f.與增長 9% 的類別相比，皮膚消費量增長了 29%，推動了 e.l.f.有史以來第一次進入前 20 名。我們最近推出的 Pure Skin 系列是一個由 3 部分組成的護理方案，旨在滿足消費者的日常需求。由皮膚科醫生開發、清潔、純素且無殘忍。 Pure Skin 使用燕麥奶和煙酰胺等成分滋養肌膚。 Pure Skin 系列最初在 elfcosmetics.com 上售空。

We also launched our W3LL People skincare collection online this quarter. Skin care is the largest category in Clean Beauty, and we're excited to start with 5 plant-powered, derm-developed, clean skin care products. The line will also be available in Ulta Beauty and Target stores this spring. We're proud of the progress we're making with W3ll People and color as well with our top-selling products now available in more inclusive shade ranges. Our bio tint moisturizers and bio stick foundations both extended to 14 shades, and our bio concealer is available in 20 shades. We plan to further extend the W3LL People shade ranges to bring plant-powered, high-performance clean products to a wider audience.

本季度我們還在網上推出了 W3LL People 護膚系列。皮膚護理是清潔美容中最大的類別，我們很高興首先推出 5 種植物動力、皮膚開發的清潔皮膚護理產品。該系列產品將於今年春天在 Ulta Beauty 和 Target 商店發售。我們對 W3ll People 和色彩方面取得的進步感到自豪，我們的最暢銷產品現已推出更具包容性的色調範圍。我們的生物色調保濕霜和生物棒粉底均提供 14 種色調，而我們的生物遮瑕膏則有 20 種色調。我們計劃進一步擴展 W3LL People 遮陽系列，為更廣泛的受眾帶來植物驅動的高性能清潔產品。

Turning to Keys Soulcare. We innovated further in the body category of 3 new offerings to praise your body, a Melting Body Balm, Mind-Clearing Body Polish and Energizing Dry Body Brush. Our core body care products continue to be named to coveted beauty award lists. This quarter, we were recognized by POPSUGAR and Refinery29. Awards included best in celebrity beauty for our Rich Nourishing Body Cream and Beauty Innovator Award for our Sacred Body Oil.

轉向Keys Soulcare。我們在身體類別中進一步創新，推出 3 款新產品來讚美您的身體：融化身體膏、清心身體磨砂膏和活力干身體刷。我們的核心身體護理產品繼續入選令人垂涎的美容獎項名單。本季度，我們獲得了 POPSUGR 和 Refinery29 的認可。榮獲的獎項包括榮獲最佳名人美容獎的豐潤滋養身體霜和榮獲美容創新獎的神聖身體油。

Our fourth strategic imperative is driving productivity and space expansion with our retail partners. Productivity was strong this quarter, with consumption ahead of our expectations. Consumers bought more of our core products during the holiday season in lieu of our traditional holiday kits. We're also quite pleased with our spring resets, which will be rolling out in the coming weeks. We believe our innovation is strong, and our visual merchandising is more impactful than ever. We continue to see shelf space opportunities.

我們的第四個戰略要務是與我們的零售合作夥伴一起提高生產力和空間擴張。本季度生產力強勁，消費超出我們的預期。消費者在節日期間購買了更多我們的核心產品，而不是我們傳統的節日套裝。我們對春季重置也非常滿意，該重置將在未來幾週內推出。我們相信我們的創新能力很強，我們的視覺營銷比以往任何時候都更具影響力。我們繼續看到貨架空間的機會。

As previously reported, we're pleased with the space expansion we secured with CVS in fall of 2021, and Walmart in spring 2022 in a subset of their doors. Internationally, we're expanding our shelf space with Boots and Superdrug in the U.K. this spring. International represents major white space at just 11% of our business today. Our performance in the U.K. gives us confidence on further geographic expansion. The latest Nielsen data ranks e.l.f. at #8, up from #12 last year and continues to be the only top 10 brand to post-growth.

正如之前報導的那樣，我們對 2021 年秋季與 CVS 以及 2022 年春季與沃爾瑪合作實現的部分空間擴張感到滿意。在國際上，今年春天我們將在英國擴大 Boots 和 Superdrug 的貨架空間。目前，國際業務僅占我們業務的 11%。我們在英國的表現讓我們對進一步的地域擴張充滿信心。尼爾森最新數據排名 e.l.f.從去年的第 12 名上升到第 8 名，並且仍然是前 10 名中唯一一個實現增長後的品牌。

We continue to drive differentiation with our retail partners. Inspired by the success of last year's Mint Melt collection and after polling our community for what they wanted next, we launched Cookies N' Dreams. This is an indulgent limited-edition 13-piece collection featuring cosmetics and skin care products. Cookies N' Dreams will be available exclusively at Walmart in the U.S., at Superdrug in the U.K. and in select Douglas markets in Europe.

我們繼續與零售合作夥伴推動差異化。受到去年 Mint Melt 系列成功的啟發，並在對社區進行民意調查以了解他們下一步想要什麼後，我們推出了 Cookies N' Dreams。這是一個限量版 13 件系列，包含化妝品和護膚品。 Cookies N' Dreams 將在美國沃爾瑪、英國 Superdrug 以及歐洲部分道格拉斯市場獨家發售。

Keys Soulcare is elevating and accelerating in our global retail strategy. We've launched a brand in 10 countries to date with 4 major retail partners. In the U.S. with Ulta Beauty, in the U.K. with Cult Beauty and H beauty, and in 8 countries across Western Europe with Douglas. We're excited to announce our newest retail partner, Sephora. We'll be launching Keys Soulcare in Sephora Canada online and in stores this spring. This marks e.l.f. Beauty's first brand entry into Sephora. We're also pleased that W3LL People will gain its first-in-line placement in a subset of Ulta Beauty stores in spring 2022.

Keys Soulcare 正在提升並加速我們的全球零售戰略。迄今為止，我們已與 4 個主要零售合作夥伴在 10 個國家/地區推出了一個品牌。在美國有 Ulta Beauty，在英國有 Cult Beauty 和 H beauty，在西歐 8 個國家有 Douglas。我們很高興地宣布我們最新的零售合作夥伴絲芙蘭。今年春天，我們將在加拿大絲芙蘭網上和商店推出 Keys Soulcare。這標誌著 e.l.f. Beauty第一個進駐絲芙蘭的品牌。我們還很高興 W3LL People 將於 2022 年春季在部分 Ulta Beauty 商店中獲得一線位置。

Our fifth strategic imperative is delivering cost savings to help fuel brand investments. As we spoke about in recent quarters, and like many other companies, we're facing a global container imbalance and port congestion, which is slowing shipments and increasing our transportation costs. I'm proud of the e.l.f. Beauty team for how we've navigated these challenges. Our operations team has executed with excellence, managing SKUs at the store level to sustaining stock rates around 95%. Given the uncertainty around how long these supply chain challenges will persist and the inflationary environment, we made the decision to increase prices on the majority of our portfolio effective mid-March. These price increases will impact approximately 2/3 of the e.l.f. cosmetics SKUs as well as certain items within Keys Soulcare and W3LL People.

我們的第五個戰略要務是節省成本，以幫助推動品牌投資。正如我們在最近幾個季度談到的那樣，與許多其他公司一樣，我們面臨著全球集裝箱失衡和港口擁堵的問題，這導致貨運速度放緩並增加了我們的運輸成本。我為 e.l.f 感到驕傲。美容團隊了解我們如何應對這些挑戰。我們的運營團隊表現出色，在商店層面管理 SKU，將庫存率維持在 95% 左右。考慮到這些供應鏈挑戰將持續多久以及通脹環境的不確定性，我們決定從 3 月中旬起提高大部分投資組合的價格。這些價格上漲將影響大約 2/3 的 e.l.f.化妝品 SKU 以及 Keys Soulcare 和 W3LL People 中的某些商品。

We balanced our approach between offsetting elevated costs and maintaining our value proposition with consumers. While this round of pricing is broader than previous rounds, our opening price points in e.l.f. remain unchanged, enabling us to continue to deliver high-quality products at an extraordinary value.

我們在抵消增加的成本和維持我們對消費者的價值主張之間取得了平衡。雖然本輪定價範圍比前幾輪更廣泛，但我們的開盤價為 e.l.f.保持不變，使我們能夠繼續以非凡的價值提供高質量的產品。

Before I turn the call over to Mandy, I want to give an update on our clean and sustainability efforts. Both W3LL People and Keys Soulcare were launched as clean and sustainably-minded brands. Over the past several months, our team reformulated over 350 SKUs on the e.l.f. brand. There are now over 1,650 ingredients on our Do Not Use list. While it'll take a number of months for these new formulations to roll out, we're excited to add clean to our existing superpowers. With e.l.f., consumers can have premium quality beauty products at accessible price points that are clean, vegan and cruelty-free.

在將電話轉給曼迪之前，我想介紹一下我們在清潔和可持續發展方面所做努力的最新情況。 W3LL People 和 Keys Soulcare 都是作為清潔和可持續發展的品牌推出的。在過去的幾個月裡，我們的團隊在 e.l.f. 上重新制定了 350 多個 SKU。品牌。現在，我們的“請勿使用”清單上有超過 1,650 種成分。雖然這些新配方需要幾個月的時間才能推出，但我們很高興能為我們現有的超能力添加清潔成分。通過 e.l.f.，消費者可以以實惠的價格獲得優質、清潔、純素且無動物實驗的美容產品。

On the sustainability front, we reached another milestone this quarter with Project Unicorn, eliminating more than 1 million pounds of packaging materials since launch. Project Unicorn has streamlined packaging for 500 SKUs across multiple categories. We are evolving Project Unicorn to Project Green unicorn with a focus to eliminate even more packaging, adopt friendlier environmental practices, and explore sustainable materials. Project Green Unicorn is a long-term initiative. Our clean and sustainable practices will continue to rise in importance, and I'm glad that we're positioning e.l.f. Beauty to excel in this area.

在可持續發展方面，我們本季度通過“獨角獸計劃”實現了另一個里程碑，自推出以來消除了超過 100 萬磅的包裝材料。 Project Unicorn 簡化了多個類別 500 個 SKU 的包裝。我們正在將“獨角獸計劃”發展為“綠色獨角獸計劃”，重點是消除更多包裝、採用更友好的環境實踐並探索可持續材料。綠色獨角獸計劃是一項長期舉措。我們的清潔和可持續實踐的重要性將繼續上升，我很高興我們將 e.l.f. 定位為 e.l.f.。美麗在這方面表現出色。

I'll now turn the call over to Mandy.

我現在將電話轉給曼迪。

Thank you, Tarang. I'm pleased to share the highlights of our strong third quarter results and raised fiscal 2022 guidance. We delivered Q3 net sales of $98 million, up 11% versus prior year and up 20% on a 2-year stack, driven by strength in our national and international retailers. Consumption was strong this quarter as well, up 17% year-over-year and up 15% on a 2-year stack basis. This exceeded our expectations and is an encouraging trend as we head into the fourth quarter.

謝謝你，塔朗。我很高興與大家分享我們第三季度強勁業績的亮點，並上調了 2022 財年指引。在我們國內和國際零售商實力的推動下，我們第三季度的淨銷售額達到 9800 萬美元，比上年增長 11%，與 2 年相比增長 20%。本季度的消費也很強勁，同比增長 17%，按 2 年累計增長 15%。這超出了我們的預期，並且在我們進入第四季度時是一個令人鼓舞的趨勢。

Gross margin of 66% and was up approximately 100 basis points compared to prior year. We saw gross margin benefits from cost savings and margin accretive mix, specifically from consumers switching away from holiday kits into higher-margin core products. We also benefited from the price increases we implemented on a subset of our SKUs in May. These gross margin benefits were partially offset by FX and elevated transportation costs, which flowed through the P&L at a lesser rate than previously expected. Given the rate of flow-through on these freight costs and overall favorable mix, we now expect gross margin for the back half to come in flat to last year.

毛利率為 66%，比上年增長約 100 個基點。我們看到毛利率受益於成本節約和利潤增值的組合，特別是消費者從度假套裝轉向利潤率更高的核心產品。我們還受益於 5 月份對部分 SKU 實施的提價。這些毛利率收益被外彙和運輸成本上升部分抵消，這些成本在損益表中的流動率低於之前的預期。考慮到這些貨運成本的流通率和整體有利的組合，我們現在預計下半年的毛利率將與去年持平。

On an adjusted basis, SG&A as a percentage of sales was 50%, up approximately 70 basis points versus prior year. The increase was mainly driven by investments in marketing and digital. Marketing and digital investment for the quarter was approximately 15% of net sales, slightly ahead of Q3 last year. We continue to expect marketing and digital to come in at 15% to 17% of net sales for the year. Q3 adjusted EBITDA was $22 million, and adjusted EBITDA margin was approximately 22% of net sales. Adjusted net income was $13 million or $0.24 per diluted share, compared to $12 million or $0.22 per diluted share a year ago.

調整後，SG&A 佔銷售額的百分比為 50%，比上年增加約 70 個基點。這一增長主要是由營銷和數字投資推動的。該季度的營銷和數字投資約占淨銷售額的 15%，略高於去年第三季度。我們仍然預計營銷和數字業務將佔今年淨銷售額的 15% 至 17%。第三季度調整後 EBITDA 為 2200 萬美元，調整後 EBITDA 利潤率約為淨銷售額的 22%。調整後淨利潤為 1,300 萬美元，即稀釋後每股收益 0.24 美元，而一年前為 1,200 萬美元，即稀釋後每股收益 0.22 美元。

Our liquidity remains strong with the combination of our cash balance and access to our revolving credit facility sitting at approximately $130 million. We ended the quarter with $33 million in cash on hand, compared to a cash balance of $35 million a year ago. Our current cash balance reflects a complete paydown of our revolving credit facility, reducing our overall debt by $13 million in the quarter. Our ending inventory balance was $85 million, in line with our expectations, as compared to $69 million a year ago.

我們的現金餘額和循環信貸額度約為 1.3 億美元，流動性依然強勁。本季度結束時，我們手頭現金為 3,300 萬美元，而一年前的現金餘額為 3,500 萬美元。我們當前的現金餘額反映了我們循環信貸額度的全部還款，使我們本季度的總債務減少了 1300 萬美元。我們的期末庫存餘額為 8500 萬美元，符合我們的預期，而一年前為 6900 萬美元。

As a reminder, last quarter, we spoke about carrying higher inventory levels due to the combination of longer lead times, higher transportation costs, the addition of Keys Soulcare and W3LL People, and our continued business momentum. We expect our cash priorities to remain on investing behind our 5 strategic imperatives and supporting strategic extensions.

提醒一下，上個季度，我們談到了由於交貨時間更長、運輸成本更高、Keys Soulcare 和 W3LL People 的增加以及我們持續的業務勢頭而導致庫存水平上升。我們預計我們的現金優先事項仍然是投資於我們的 5 項戰略要務並支持戰略擴展。

Now let's turn to our fiscal 2022 guidance. We now expect net sales growth of approximately 17% to 19% versus fiscal 2021, up from 14% to 16% previously. We expect adjusted EBITDA between $70 million and $72 million, adjusted net income between $40 million and $42 million and adjusted EPS of $0.73 to $0.76 per diluted share. We still expect a fully diluted share count of approximately 55 million shares and our fiscal 2022 adjusted tax rate to be approximately 22% to 23%. Our raised top line guidance largely reflects our outperformance in Q3 relative to our expectations and an improved outlook for Q4.

現在讓我們來看看我們的 2022 財年指導。我們目前預計淨銷售額較 2021 財年增長約 17% 至 19%，高於之前的 14% 至 16%。我們預計調整後的 EBITDA 在 7000 萬美元至 7200 萬美元之間，調整後的淨利潤在 4000 萬美元至 4200 萬美元之間，調整後每股攤薄每股收益為 0.73 美元至 0.76 美元。我們仍然預計完全稀釋後的股數約為 5500 萬股，2022 財年調整後的稅率約為 22% 至 23%。我們上調的營收指引在很大程度上反映了我們第三季度的表現優於我們的預期，以及第四季度前景的改善。

As Tarang mentioned, our business momentum remained strong throughout Q3, up 20% on a 2-year stack basis, despite not having most of our holiday program. We expect Q4 to look similar to Q3 on a 2-year stack basis at approximately 23% growth. As a reminder, in Q4 and into Q1 of next fiscal year, we will be lapping the largest round of stimulus-related spending we've seen to date. This has implications on our net sales, as I just noted, as well as what you'll see in the Nielsen data.

正如 Tarang 提到的，儘管我們沒有大部分假期計劃，但整個第三季度我們的業務勢頭依然強勁，在 2 年基礎上增長了 20%。我們預計，在 2 年堆棧基礎上，第四季度將與第三季度類似，增長率約為 23%。提醒一下，在第四季度和下一財年第一季度，我們將實施迄今為止最大規模的刺激相關支出。正如我剛才指出的，這對我們的淨銷售額以及您將在尼爾森數據中看到的內容產生影響。

In the 4 weeks ending March and April of 2021, we posted 40% and 52% growth, respectively, in tracked channels, and we expect cycling these numbers to cause volatility in Nielsen data during those periods. Therefore, we're anchoring on a 2-year stack comparison to better capture trends. We remain mindful of the industry-wide container imbalance and the continued elevation in costs as a result. We're proud of how our team has navigated these logistics to date, and it remains a dynamic environment. That said, given our sales momentum, we are raising our adjusted EBITDA expectations to $70 million to $72 million, up 15% to 18% year-over-year.

在截至 2021 年 3 月和 4 月的 4 週內，我們在跟踪渠道中分別公佈了 40% 和 52% 的增長，我們預計這些數字的循環將導致尼爾森數據在此期間出現波動。因此，我們以兩年的堆棧比較為基礎，以更好地捕捉趨勢。我們仍然關注整個行業的集裝箱不平衡以及由此導致的成本持續上升。我們對我們的團隊迄今為止處理這些物流的方式感到自豪，並且它仍然是一個充滿活力的環境。也就是說，考慮到我們的銷售勢頭，我們將調整後的 EBITDA 預期提高至 7000 萬至 7200 萬美元，同比增長 15% 至 18%。

As we discussed earlier in the call, we're taking pricing actions next month to mitigate the impact of elevated shipping costs and inflationary pressures on our financial performance, which we believe will help us as we enter fiscal 2023. We plan to provide more color on the expected impact of these pricing actions when we provide our fiscal 2023 guidance in May. This should allow time for us to better assess consumer response as it will take a few weeks for our retailers to reflect pricing in the market.

正如我們之前在電話會議中討論的那樣，我們將在下個月採取定價行動，以減輕運輸成本上漲和通脹壓力對我們財務業績的影響，我們相信這將在我們進入2023 財年時對我們有所幫助。我們計劃提供更多色彩當我們在 5 月份提供 2023 財年指導時，我們將討論這些定價行為的預期影響。這應該讓我們有時間更好地評估消費者的反應，因為我們的零售商需要幾週時間才能反映市場定價。

Overall, we're very pleased with our Q3 results and are excited about the opportunities ahead in fiscal 2023. Our performance over the last 12 quarters, both on an absolute basis and relative to the category, demonstrates how our 5 strategic imperatives are driving results and we remain confident in the long-term growth potential for our portfolio of brands.

總體而言，我們對第三季度的業績非常滿意，並對2023 財年的機遇感到興奮。我們過去12 個季度的業績，無論是絕對基礎還是相對於類別的業績，都表明了我們的5 項戰略要務如何推動業績我們對我們品牌組合的長期增長潛力仍然充滿信心。

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 is from Andrea Teixeira with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Andrea Teixeira。

Congrats on your quarter, both on innovation and distribution. I have a question to Tarang, and another one to Mandy. First to Tarang. On the Keys Soulcare entrance in Sephora Canada, again, congrats on that. Is there a plan to expand into the U.S. and Europe, given obviously, Alicia's strong international following? And then for Mandy, it's obviously great to see you raise guidance for the top line, but it doesn't flow into EBITDA and EPS. And of course, we all appreciate what's happening in the cost pressures and labor and distribution. Is this a function of these costs or a timing of marketing or just being more conservative given the moving pieces ahead of you?

祝賀您本季度在創新和分銷方面的表現。我有一個問題要問塔朗，還有一個問題要問曼迪。首先到塔朗。再次恭喜加拿大絲芙蘭的 Keys Soulcare 入口。鑑於艾麗西婭顯然擁有強大的國際追隨者，是否有計劃擴展到美國和歐洲？對於 Mandy 來說，很高興看到您提高了營收指引，但它不會流入 EBITDA 和 EPS。當然，我們都理解成本壓力以及勞動力和分配方面發生的情況。這是這些成本的函數還是營銷時機的函數，或者只是考慮到您面前的變化而更加保守？

Andrea, on your question on Keys Soulcare, we're really pleased with the progress on the brand, including entering Sephora Canada. We have high hopes for our launch in Sephora Canada, and we definitely see Sephora U.S. as a potential future partner. We're still -- as a reminder, we're still in the exclusivity period with Ulta Beauty in the U.S. So we're starting with Sephora Canada and I think the prospects of additional distribution on Keys are quite bright, particularly given the level of engagement we're seeing with that brand.

Andrea，關於您關於 Keys Soulcare 的問題，我們對該品牌的進展感到非常滿意，包括進入加拿大絲芙蘭。我們對絲芙蘭加拿大的推出寄予厚望，並且我們肯定將絲芙蘭美國視為潛在的未來合作夥伴。我們仍然——提醒一下，我們仍然處於 Ulta Beauty 在美國的獨家經營期。所以我們從加拿大絲芙蘭開始，我認為 Keys 上額外分銷的前景非常光明，特別是考慮到這一水平我們看到該品牌的參與度。

Yes. And then to answer your question, Andrea -- did you have a follow-up there, Andrea, on Keys?

是的。然後回答你的問題，Andrea——你有關於 Keys 的後續行動嗎？

No, no, no. I was just saying that I would just follow up if I may. On entrance -- the W3LL People entrance on Ulta, is that a separate shelf from e.l.f.? I'm assuming it is because it's mostly skin and it's going to be side-by-side to e.l.f. itself? Or it's going to be a separate display?

不不不。我只是說如果可以的話我會跟進。入口處——Ulta 上的 W3LL People 入口，是與 e.l.f. 分開的架子嗎？我猜想這是因為它主要是皮膚，並且它將與 e.l.f 並排。本身？或者它將是一個單獨的顯示器？

Yes. The Ulta distribution on W3LL People is incremental to e.l.f. and in a different part of their store. W3LL People has been part of the Conscious Beauty program within Ulta, a separate kind of dedicated merchandising vehicle. This is our first in-line placement within a subset of the Ulta doors. And again, we're quite excited about that as well, given the momentum that we have on W3LL People after our brand -- our rebranding as well as the innovation program we have on that brand.

是的。 W3LL People 上的 Ulta 發行版是增量到 e.l.f 的。並在他們商店的不同部分。 W3LL People 已成為 Ulta 內 Conscious Beauty 計劃的一部分，Ulta 是一種獨立的專用銷售工具。這是我們在 Ulta 門的子集中首次在線放置。再說一遍，我們對此也感到非常興奮，因為我們的品牌重塑以及我們對該品牌的創新計劃在 W3LL People 上所展現的勢頭。

Perfect.

完美的。

And then your question on the raised guidance and the flow-through on EBITDA and EPS. So essentially, we've taken our guidance up from 14% to 16% on the top line, up to 17% to 19%. And that's roughly $9 million incremental on the top line. And on EBITDA, we've raised our guidance from $66.5 million to $68 million in up to $70 to $72 million. So $4 million on the top end on EBITDA as well. Q3 beat by roughly $4.5 million, $5 million. And so we are flowing through most of that to the full year. So we feel really great about our EBITDA guidance. Actually, it translates to 15% to 18% growth on the year, even with the cost headwinds that we're seeing. So really proud of that EBITDA expectation.

然後是關於提出的指導以及 EBITDA 和 EPS 的流通的問題。因此，從本質上講，我們將營收指引從 14% 提高到 16%，提高到 17% 到 19%。這大約增加了 900 萬美元的收入。在 EBITDA 方面，我們將指導值從 6650 萬美元上調至 6800 萬美元，最高提高了 70 至 7200 萬美元。因此，EBITDA 的上限也達到了 400 萬美元。第三季度增長了大約 450 萬美元、500 萬美元。因此，我們將把其中大部分時間延續到全年。因此，我們對 EBITDA 指導感到非常滿意。實際上，即使我們看到了成本阻力，這也意味著今年的增長率為 15% 至 18%。我對 EBITDA 預期感到非常自豪。

And then the Ulta exclusives, when it runs out, do you -- just sorry for going back to that. Is that an exclusivity that may run out any time?

然後，Ulta 獨家產品，當它用完時，你會嗎——很抱歉又回到了那個。這是一種隨時可能耗盡的排他性嗎？

It will run out at a certain point. Obviously, we continue to discuss Keys Soulcare with Ulta. They've been a terrific partner and supporter as we launched the brand in U.S. with Ulta Beauty. And so I think that will be an ongoing conversation. But at some point, that exclusivity will run out, and we'll evaluate whether we extend it or whether we continue to expand distribution on Keys Soulcare.

它會在某個時刻耗盡。顯然，我們繼續與 Ulta 討論 Keys Soulcare。當我們在美國推出 Ulta Beauty 品牌時，他們一直是我們出色的合作夥伴和支持者。所以我認為這將是一個持續的對話。但到了某個時候，這種排他性將會耗盡，我們將評估是否延長它或是否繼續擴大 Keys Soulcare 的分銷範圍。

The next question is from Steph Wissink with Jefferies.

下一個問題來自 Jefferies 的 Steph Wissink。

We had 2 follow-up questions as well. The first maybe trying is best for you. This is on pricing. Just curious, your comments on price gaps to Prestige kind of being maintained even with your planned mid-March price update. Can you just share a little bit about how you're thinking about that gap to Prestige pricing? And then also on space gains. I'm wondering if you can quantify, help us think through the gains in the domestic market with CVS and Walmart and internationally, any quantification around how much those might benefit 2022 calendar year?

我們還有 2 個後續問題。第一次嘗試也許對你來說是最好的。這是關於定價的。只是好奇，即使您計劃在 3 月中旬進行價格更新，您對與 Prestige 價格差距的評論仍然保持不變。您能否分享一下您如何看待與 Prestige 定價之間的差距？然後還有空間收益。我想知道您是否可以量化，幫助我們思考 CVS 和沃爾瑪在國內市場以及國際市場上的收益，是否可以量化這些收益可能會給 2022 年帶來多少好處？

Sure. Steph, so on the pricing actions, we're using a very similar approach that we used in 2019, which proved quite successful, where we've really gone SKU by SKU and really taken a look at the SKUs that we have the most pricing power on. And when you take a look at a lot of our range, the comparable product is a Prestige product. So I'll give you an example -- a couple of examples of things we just launched.

當然。 Steph，在定價行動方面，我們使用了與 2019 年非常相似的方法，事實證明這種方法非常成功，我們確實逐個 SKU 進行了研究，並真正研究了我們定價最高的 SKU打開。當您查看我們的許多產品系列時，您會發現類似的產品是 Prestige 產品。所以我會給你一個例子——我們剛剛推出的幾個例子。

Our Power Grip Primer, which I talked on the call, is already our top-selling new item or actually top-selling item period on elfcosmetics.com. That's priced at $10. The comparable Prestige item is $34. So still quite a big gap there, as are many of our other core holy grails. So our approach is taking many of those products up $1 each in price. Equally important, we are not taking pricing up on many of our opening price point items. So the ones that we have the most extraordinary value on, many of our $2, $3, $4 items remain at that price point. So we feel that strategy is much better than, I'd call it, the peanut butter approach into a general price increase. It allows us to really focus on where we feel we have pricing power while maintaining that strong value equation.

我在電話中談到的我們的 Power Grip Primer 已經是我們最暢銷的新產品，或者實際上是 elfcosmetics.com 上最暢銷的產品。售價為 10 美元。類似的 Prestige 商品售價為 34 美元。因此，這方面仍然存在很大差距，我們的許多其他核心聖杯也是如此​​。因此，我們的方法是將其中許多產品的價格提高 1 美元。同樣重要的是，我們不會提高許多開盤價商品的價格。因此，我們最有價值的商品，我們的許多 2 美元、3 美元、4 美元的商品都保持在這個價格點。因此，我們認為該策略比我所說的通過花生醬普遍提價的方法要好得多。它使我們能夠真正專注於我們認為擁有定價能力的領域，同時保持強大的價值方程式。

And we saw great things after our 2019 pricing. Even the more limited pricing we took back in 2021 in the U.S. with broader pricing in international, also did quite well aiding our gross margin. So we always are cautious with pricing given the extraordinary value we have, but we feel we're well positioned for the pricing we're going to take in mid-March.

2019 年定價後，我們看到了一些偉大的事情。即使我們在 2021 年在美國收回了更有限的定價，並在國際上採取了更廣泛的定價，也很好地提高了我們的毛利率。因此，鑑於我們擁有的非凡價值，我們始終對定價持謹慎態度，但我們認為我們對於 3 月中旬的定價已經做好了準備。

And then on your second one on the space gains. We're not quantifying the percent space gains, but what I will tell you to give you a little bit more color. On the CVS space gain that we had in a subset of their doors, we went from a 3-foot end cap gondola to 6 and 10-foot of inline space, so a pretty sizable increase in space. And we've been really pleased with the productivity of that space gain. So I think it bodes well for future gains within CVS. Walmart is currently being set right now in a subset of their doors as part of their spring resets. And again, many of those sets went to 8 feet of space within Walmart.

然後是關於空間增益的第二個。我們並不是量化空間增益的百分比，而是我將告訴您的內容，以便為您提供更多的色彩。在 CVS 門子集的空間增益方面，我們從 3 英尺端蓋吊籃變為 6 英尺和 10 英尺的內聯空間，因此空間增加相當大。我們對空間增益所帶來的生產力感到非常滿意。所以我認為這對 CVS 未來的收益來說是個好兆頭。作為春季重置的一部分，沃爾瑪目前正在其部分門內設置。同樣，其中許多設備都放置在沃爾瑪內 8 英尺的空間內。

And then Superdrug and Boots, both have had a pretty good continual increase in space. And so I think beyond kind of building out full chain, we're also seeing pretty sizable space gains there as well. So we haven't quantified the percent of our sales. We'll perhaps give more color on that when we give FY '23 guidance in May. What I'll tell you, our first focus is always going to be on our productivity, the space that we currently have making that work harder. And we've got a really good track record with Project, now Green Unicorn, being able to aid that. I'm particularly excited about our spring sets that are being set right now.

然後是 Superdrug 和 Boots，兩者的空間都在持續增長。因此，我認為除了建立完整的鏈條之外，我們還看到了相當大的空間收益。所以我們還沒有量化我們的銷售額百分比。當我們在 5 月份給出 23 財年指導時，我們可能會對此進行更多說明。我要告訴你的是，我們的首要關注點始終是我們的生產力，以及我們目前擁有的使工作更加努力的空間。我們在 Project（現在是 Green Unicorn）方面擁有非常良好的記錄，能夠為此提供幫助。我對我們現在正在設置的春季套裝感到特別興奮。

The next question is from Dara Mohsenian from Morgan Stanley.

下一個問題來自摩根士丹利的 Dara Mohsenian。

Tarang, can you spend some time discussing cosmetics category growth trends in calendar Q4? And then perhaps just a bit of an update on category growth so far this fiscal year? Any thoughts around if there's any risks to category growth from weaker consumer spending, perhaps, as that fiscal support and stimulus benefits fade? And also beyond the category maybe potential impact on e.l.f. if we do see weaker consumer spending there.

Tarang，您能花一些時間討論一下第四季度化妝品品類的增長趨勢嗎？然後也許只是本財年迄今為止類別增長的一些最新情況？隨著財政支持和刺激效益的消退，消費者支出疲軟是否會對品類增長帶來風險，您有什麼想法嗎？而且除了該類別之外，可能還會對 e.l.f. 產生潛在影響。如果我們確實看到那裡的消費者支出疲軟。

Yes. So Dara, I remain very bullish on the category. I'd say in Q4, we saw mixed results on the category. We had 6 weeks where the category was above pre-pandemic levels, 6 weeks where it was below pre-pandemic levels. But the overall trajectory in terms of the category is definitely more positive. And we're seeing that in consumer behavior even when you look at the subcategory level. Lip is having a moment right now as consumers seek more color. For e.l.f. specifically, we're seeing strength across all of our core segments. So I talked about the 5 segments where we have the #1 or 2 position. We're growing sales and share in all 5 of those segments as well as within skin care. As I mentioned, our skin care consumption for e.l.f. skin for the quarter was up 29% versus a category that was plus 9%. So I like what I'm seeing from a category standpoint.

是的。所以達拉，我仍然非常看好這個類別。我想說的是，在第四季度，我們在該類別上看到了好壞參半的結果。我們有 6 週的時間該類別高於大流行前的水平，有 6 週的時間低於大流行前的水平。但就該類別而言，整體軌跡肯定更為積極。即使從子品類層面來看，我們也能在消費者行為中看到這一點。隨著消費者尋求更多色彩，唇彩現在正風靡一時。對於 e.l.f.具體來說，我們看到了所有核心領域的實力。所以我談到了我們擁有第一或第二位置的 5 個細分市場。我們在所有這 5 個細分市場以及皮膚護理領域的銷售額和份額都在增長。正如我所提到的，我們對 e.l.f. 的護膚消費。本季度皮膚價格上漲 29%，而其他類別則上漲 9%。所以我喜歡從類別的角度看到的東西。

In terms of the relationship of consumer spending, particularly kind of the inflationary environment, I feel we're well positioned within that. I mean, I think we've proven that over the last 3 years, growing 12 consecutive quarters regardless of where the category was. And I'm feeling really quite bullish on our business even relative to the category, particularly given, I think, we have a much richer portfolio now with not only e.l.f., e.l.f. skin, W3LL People, Keys Soulcare and then even better presence between color cosmetics and skin care, which continues to be a major white space opportunity for us.

就消費者支出的關係而言，特別是在通貨膨脹環境方面，我認為我們處於有利位置。我的意思是，我認為我們已經證明，在過去 3 年裡，無論類別在哪個類別，我們都連續 12 個季度增長。我對我們的業務非常樂觀，甚至相對於該類別而言也是如此，特別是考慮到我們現在擁有更豐富的產品組合，不僅有 e.l.f.、e.l.f.皮膚、W3LL People、Keys Soulcare 以及彩妝和皮膚護理之間更好的存在，這對我們來說仍然是一個主要的空白機會。

Great. And then on supply chain, can you give us a bit of update there if you were able to fully service demand in the quarter and where you stand? And any forward thoughts, if you continue to see strong consumer demand going forward in terms of your ability to supply that demand?

偉大的。然後在供應鏈方面，如果你們能夠在本季度充分滿足需求以及你們的處境，您能給我們提供一些最新情況嗎？如果您繼續看到強勁的消費者需求，以及您滿足需求的能力，您有什麼前瞻性的想法嗎？

Yes. I feel great about what we were able to do in the quarter. And as we look forward, I mean, we were able to maintain 95% in-stock. And a lot of that had to do with the proactive decisions we made earlier in the year, kind of forgoing a lot of our holiday kits for our core items proved to be a very good decision. We saw migration from kits to our core products, which also aided gross margins. We've talked before, taking up our inventory levels which really gave us that insulation on the longer lead times that we're seeing. So I feel better about our supply situation now than I have at any time during our fiscal year, and I feel it will continue to get better. Now we're still seeing longer lead times and normal volatility that I think others are experiencing right now, but a great deal of confidence of our ability to continue to meet the demand that we have which has been quite strong.

是的。我對我們本季度所做的事情感到非常高興。我的意思是，展望未來，我們能夠保持 95% 的庫存。這在很大程度上與我們今年早些時候做出的積極決定有關，事實證明，放棄很多度假套裝而轉而購買我們的核心物品是一個非常好的決定。我們看到從套件向核心產品的轉變，這也提高了毛利率。我們之前已經談過，提高我們的庫存水平，這確實使我們能夠避免我們所看到的更長的交貨時間。因此，我現在對我們的供應狀況的感覺比本財年中的任何時候都好，而且我覺得它會繼續變得更好。現在，我們仍然看到更長的交貨時間和正常的波動性，我認為其他人現在正在經歷這些，但我們對繼續滿足我們的強勁需求的能力充滿信心。

The next question is from Olivia Tong with Raymond James.

下一個問題是由 Olivia Tong 和 Raymond James 提出的。

First question is just around helping us understand, if you could give a finer point on what drove the revenue upside this quarter and the sustainability of that over the next few quarters. Maybe if you could give us a range of -- an idea on the range of price increases you're planning to take. And if you've seen any impact from Omicron whether to January sales or costs and your ability to drive efficiencies.

第一個問題只是幫助我們理解，您是否可以更詳細地說明推動本季度收入增長的因素以及未來幾個季度收入的可持續性。也許您可以給我們一個關於您計劃採取的價格上漲範圍的想法。如果您看到 Omicron 對 1 月份銷售或成本以及您提高效率的能力產生的任何影響。

So I'll start, Olivia. So on the revenue upside in the quarter, as we talked, really, Q3 exceeded our expectations on the consumption side of the equation, and really saw consumers shifting from our holiday kits, which we had a very scaled-back program this year, into our core product. That core business momentum has really improved our expectations for Q4 as well. So implied in the guidance is a better outlook on Q4 as well. And still, both quarters -- second half is going to be very strong for us, we expect from a 2-year stack basis as well. So we do think that those -- that trend is sustainable, evidenced by taking our guidance up to 19% on the top end for the year.

那麼我就開始吧，奧利維亞。因此，就本季度的收入增長而言，正如我們所說，第三季度在消費方面確實超出了我們的預期，並且確實看到消費者從我們的度假套裝（我們今年的計劃非常縮減）轉向了我們的核心產品。這種核心業務勢頭也確實提高了我們對第四季度的預期。因此，指導意見中也暗示了第四季度的更好前景。儘管如此，這兩個季度——下半年對我們來說都將非常強勁，我們預計從兩年的堆棧來看也是如此。因此，我們確實認為這種趨勢是可持續的，我們將今年最高指導值提高到 19% 就證明了這一點。

In terms of the price increases, so this round of price increases that we're taking in March, it covers about 2/3 of our portfolio. And it also includes a portion of Keys and W3LL People in that as well. So it's a pretty broad price increase. But as Tarang mentioned earlier, really balanced that with wanting to maintain the value proposition for our consumers. So we're not touching our opening price points and really want to make sure that we stay -- continue to deliver that value proposition for our consumers.

就價格上漲而言，我們在 3 月份進行的這一輪價格上漲，涵蓋了我們投資組合的約 2/3。它還包括 Keys 和 W3LL People 的一部分。所以這是一個相當廣泛的價格上漲。但正如塔朗之前提到的，真正平衡了這一點與維護消費者的價值主張。因此，我們不會觸及我們的開盤價，並且確實希望確保我們保持不變，繼續為我們的消費者提供這一價值主張。

In terms of Omicron, I would say that's hard to parse out from the data, given all the moving parts. I think we saw more of an impact from Delta earlier on versus what we're seeing now with Omicron.

就 Omicron 而言，我想說，考慮到所有移動部件，很難從數據中解析出來。我認為我們之前看到的 Delta 的影響比我們現在看到的 Omicron 的影響更大。

Yes. And then I would say one of the other things that gives us a lot of confidence in the business is the strength of our spring innovation. It bodes well for what you're going to continue to see from a consumption trend standpoint. I mentioned the Power Grip Primer, particularly excited about our building on our Camo franchise with our Camo foundations. Even as Lip is having a moment right now, our Glossy Lip Stains, all of them are phenomenal values relative to the Prestige equivalent as well as our Pure Skin line. And so we've seen really good results on our own website and are really hopeful as they hit spring sets.

是的。然後我想說，讓我們對業務充滿信心的另一件事是我們彈簧創新的實力。從消費趨勢的角度來看，這預示著您將繼續看到的情況。我提到了 Power Grip Primer，對我們在迷彩系列基礎上打造迷彩系列感到特別興奮。儘管 Lip 目前正流行，但我們的 Glossy Lip Stains 相對於 Prestige 同類產品以及我們的 Pure Skin 系列而言，都具有驚人的價值。因此，我們在自己的網站上看到了非常好的結果，並且對它們在春季上市時充滿希望。

Now you will see some volatility in the Nielsen data, as we said. The stimulus-driven kind of consumption that we saw in March and April was quite high. So there might be some noise in the Nielsen data, but overall consumption trends are actually stronger than what we expected for Q3, and I think bode well for the rest of our fiscal year.

正如我們所說，現在您將看到尼爾森數據出現一些波動。我們在三月和四月看到的刺激驅動型消費相當高。因此，尼爾森數據中可能存在一些噪音，但總體消費趨勢實際上強於我們對第三季度的預期，我認為這對我們本財年剩餘時間來說是個好兆頭。

That's helpful. And then quite frankly, given how strong the December quarter was, does this in any way change your view longer term on how to run holiday in future years, how to run promotions, the magnitude or extent that you have to do or that you want to do kits and other promotion-type products just on a longer-term basis?

這很有幫助。然後坦率地說，考慮到 12 月份季度的強勁表現，這是否會以任何方式改變您對未來幾年如何舉辦假期、如何開展促銷活動、您必須做或您想要做的程度或程度的長期看法只是為了長期生產套件和其他促銷型產品？

Yes. I'd say longer term, we're really pleased with what we saw in Q3 this year, and I think we'll carry forward those learnings into future holiday programs. And the nature of that is we will still have some holiday kits. They definitely have a role and there is consumer excitement, particularly as we're able to engage them online and with some of our key retailers, but a much bigger focus on our core products. Those products come at a better gross margin. We see consumers really gravitated towards them. And so I think that will be our -- at least for the time being, our plan for the future is much more focused on our core with some limited holiday kits to drive excitement.

是的。我想說，從長遠來看，我們對今年第三季度的情況感到非常滿意，我認為我們會將這些經驗運用到未來的假期計劃中。其本質是我們仍然會有一些節日套裝。他們肯定發揮著作用，而且消費者也很興奮，特別是因為我們能夠在網上和我們的一些主要零售商接觸他們，但我們更加關注我們的核心產品。這些產品的毛利率更高。我們看到消費者確實被它們所吸引。所以我認為這將是我們的——至少目前來說，我們對未來的計劃更加關注我們的核心，並提供一些有限的假期套件來激發興奮。

The next question is from Bill Chappell with Truist Securities.

下一個問題來自 Truist Securities 的 Bill Chappell。

First question on maybe a little bit around W3LL People. I guess we're 2 years into that deal. I'm just trying to understand what you've learned, what's expanded from here and how it looks in terms of future M&A? Would you continue to look for stuff of that size? Or would you like a bigger platform? Just kind of learnings 24 months in? I think that's right.

第一個問題可能是關於 W3LL People 的。我想我們已經達成該協議兩年了。我只是想了解您學到了什麼，從這裡擴展了什麼以及未來併購的前景如何？您會繼續尋找那種尺寸的東西嗎？或者你想要一個更大的平台？只是 24 個月的學習？我認為這是對的。

Yes. Well, thanks, Bill. We're really pleased with our acquisition of W3LL People. We acquired the brand, really the thesis there was it was a real pioneer in plant-powered clean beauty. And we felt we could add a lot of value to that brand, both with the innovation platform we have, certainly our distribution footprint and our ability from a marketing standpoint. And we very much have kind of executed against that plan. We did a rebranding of W3LL People. It's almost a completely new brand from a consumer presentation standpoint. We really energized the innovation program, getting W3LL People into skin care, and we're seeing really good momentum.

是的。嗯，謝謝，比爾。我們對收購 W3LL People 感到非常高興。我們收購了這個品牌，真正的論點是它是植物動力清潔美容領域的真正先驅。我們覺得我們可以為該品牌增加很多價值，無論是我們擁有的創新平台，當然還是我們的分銷足跡和我們從營銷角度來看的能力。我們基本上已經按照這個計劃執行了。我們對 W3LL People 進行了品牌重塑。從消費者展示的角度來看，這幾乎是一個全新的品牌。我們確實為創新計劃注入了活力，讓 W3LL People 涉足皮膚護理領域，我們看到了非常好的勢頭。

And in addition, what W3LL People brought to us was real capability in clean beauty. W3LL people came -- one of the co-founders of W3LL People was Dr. Renee Snyder, a Board-certified dermatologist. She was instrumental with our innovation team to launch Keys Soulcare as a clean brand, replatforming W3LL People, gave us a lot of knowledge where in the last 6 months, we've reformulated over 350 SKUs on the e.l.f. brand, where all of our formulations are now clean. So it'll take a few months to roll out, but we feel great the progress we've got, both in terms of what we could do for W3LL People and the knowledge we learned.

除此之外，W3LL People給我們帶來的是真正的潔淨美能力。 W3LL 人們來了——W3LL People 的聯合創始人之一是 Renee Snyder 博士，她是一位委員會認證的皮膚科醫生。她在我們的創新團隊中發揮了重要作用，推出了Keys Soulcare 作為一個乾淨的品牌，重新構建了W3LL People 平台，為我們提供了很多知識，在過去6 個月中，我們在e.l.f. 上重新制定了超過350 個SKU。品牌，我們所有的配方現在都是乾淨的。因此，推出需要幾個月的時間，但我們對所取得的進展感到非常高興，無論是在我們可以為 W3LL People 做的事情還是我們學到的知識方面。

In terms of future M&A, I'd say we continue to be interested in other brands that we can bring on to the platform, under a similar construct of being able to bring capabilities into the company that we don't have as well as leverage, the incredible platform we've created here. In terms of scale, I would say W3LL People was intentionally small when we did it as our first acquisition. We're highly disciplined. We wanted to make sure we could do the integration and get the plan going. I'd say future acquisitions, we would look for them to be a bit larger, but we're highly disciplined. I mean you'll see in the notes as you take a look at some of the adjustments, there were some M&A costs in Q3. It was a target we looked at, but we did not submit a final bid.

在未來的併購方面，我想說，我們仍然對我們可以引入該平台的其他品牌感興趣，在類似的架構下，能夠將我們不具備的能力和影響力帶入公司，我們在這裡創建的令人難以置信的平台。就規模而言，我想說，當我們第一次收購 W3LL People 時，我們故意規模較小。我們紀律嚴明。我們希望確保我們能夠進行整合併使計劃得以實施。我想說的是，未來的收購，我們會尋求規模更大一點的收購，但我們紀律嚴明。我的意思是，當您查看一些調整時，您會在註釋中看到，第三季度存在一些併購成本。這是我們考慮過的一個目標，但我們沒有提交最終報價。

So we remain highly disciplined in terms of what we look at. And I'd say the things that appeal to us are other high-growth brands, not only on the top line but also on the bottom line. We have a great profile as a company in terms of being able to deliver both top and bottom line. And so any potential acquisition target, we have that. And then, again, something that would complement our portfolio. We feel great about our portfolio. That's our first priority. But either in an adjacent category or something that will bring a different capability to the company, I'd say we remain open to that, but we'll remain disciplined in taking a look at potential targets.

因此，我們在觀察事物時保持高度自律。我想說，吸引我們的是其他高增長品牌，不僅在營收上，而且在利潤上。作為一家公司，我們在實現營收和利潤方面擁有出色的形象。因此，任何潛在的收購目標，我們都有。然後，再一次，一些可以補充我們投資組合的東西。我們對我們的投資組合感覺很好。這是我們的首要任務。但無論是在相鄰類別還是將為公司帶來不同能力的領域，我想說我們對此保持開放態度，但我們將在考慮潛在目標時保持紀律。

And then just back on supply chain. I mean now that we're through the holidays and seeing that you get shipped most from Asia, do you feel like most of the supply chain risk is, I guess, behind you in terms of getting containers, getting supplies and moving forward? Or is there still some bumpiness over the next few months that you just kind of, not cross your fingers, but that you just still worry about?

然後回到供應鏈。我的意思是，現在我們已經過了假期，看到你們大部分貨物都是從亞洲運來的，我想你們是否覺得大部分供應鏈風險已經在獲取集裝箱、獲取物資和繼續前進方面落後於你們了？或者在接下來的幾個月裡是否仍然存在一些坎坷，你只是有點祈禱，但你仍然擔心？

No, I would say we're feeling good about the supply chain from a risk standpoint. I'd say over the last few months, we've been able to get all the containers we wanted. Now they are coming at an elevated cost. It was one of the impetuses for us to decide to take pricing, is we expect some of those elevated costs will be with us for some time. So that's one of the reasons we price. But in terms of overall availability, our capacity, our ability to get products, we are highly confident of our ability to do that and meet the demand that we're seeing.

不，我想說，從風險的角度來看，我們對供應鏈感覺良好。我想說，在過去的幾個月裡，我們已經獲得了我們想要的所有容器。現在它們的成本更高了。這是我們決定定價的動力之一，我們預計其中一些增加的成本將持續一段時間。這就是我們定價的原因之一。但就整體可用性、我們的能力、我們獲得產品的能力而言，我們對我們做到這一點並滿足我們所看到的需求的能力充滿信心。

The next question is from Linda Bolton-Weiser with D.A. Davidson.

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

Well, I was just wanting a little bit more detail or quantification on the gross margin because it was really a spectacular performance, even accounting for the holiday mix issues that you talked about. Is there any way of explaining or quantifying what came out so much better than you expected that drove the gross margin? Because you had expected it to be down sequentially, and it was up and it was up very strongly. And is this new level kind of something going forward? Or is that still going to fluctuate? But you're taking more price, so it seems to me that, that gross margin has even higher to go.

好吧，我只是想要更多關於毛利率的細節或量化，因為這確實是一個令人驚嘆的表現，甚至考慮到你談到的假期組合問題。有什麼方法可以解釋或量化是什麼導致毛利率比您預期的好得多？因為你原本預計它會連續下跌，但它卻上漲了，而且上漲得非常強勁。這個新關卡是未來的發展趨勢嗎？或者說還會有波動嗎？但你的價格更高，所以在我看來，毛利率還會更高。

Linda, I'll take that question. So gross margin, as we talked in the quarter, I think what came in better than we expected are two things. One, I would say the shift into our core product from not having that holiday mix. The holiday product is at a lower margin. So people shifting into our core product actually drove a benefit for us on a year-over-year basis. So that was great to see.

琳達，我來回答這個問題。因此，正如我們在本季度所討論的那樣，毛利率我認為有兩件事比我們預期的要好。第一，我想說的是從沒有假期組合轉向我們的核心產品。假日產品的利潤率較低。因此，人們轉向我們的核心產品實際上逐年為我們帶來了好處。很高興看到這一點。

The other part is, I think, generally, we're mixing out a little bit better. Even with the higher freight costs, we're not seeing that impact the P&L in the way that we expected. And so that's why for the second half, I've now called out that we expect gross margin to be flat to last year. So that implies coming down a little bit versus last year in Q4. So not -- because we won't have that holiday benefit in those numbers. But I think that our outlook has improved from that standpoint just based on what we're seeing from a mix perspective.

我認為，另一部分是，總的來說，我們的混合效果更好了一些。即使運費較高，我們也沒有看到這對損益的影響如我們預期的那樣。因此，這就是為什麼對於下半年，我現在指出，我們預計毛利率將與去年持平。因此，這意味著第四季度的產量比去年有所下降。所以不是——因為我們不會在這些數字中享受假期福利。但我認為，僅僅基於我們從混合角度看到的情況，從這個角度來看，我們的前景已經有所改善。

In terms of pricing and how that's going to impact gross margin, I think we'll have more color to give on that once we give our fiscal '23 guidance in May. We really want to allow time for our retailers to reflect the pricing in the market and get a real feel for how consumers are responding before we go any further on giving color there.

就定價及其對毛利率的影響而言，我認為一旦我們在 5 月份給出 23 財年的指導意見，我們就會對此有更多的闡述。我們真的希望讓我們的零售商有時間反映市場上的定價，並在我們進一步提供顏色之前真正了解消費者的反應。

Great. And can I just ask about the top line performance? According to the guidance, you're still kind of guiding to down a little bit year-over-year in the fourth quarter against the kind of hard comparisons. But that prior year comp gets even harder in the first half of -- for the next -- for the first half of FY '23. So just in a very qualitative way, how should we think about that? Because that comparison is going to get harder, even though you've got a lot of drivers, maybe expanding Keys Soulcare and other things going on. So how should we just generally think about that in terms of the growth in the first half of fiscal '23?

偉大的。我可以問一下營收表現嗎？根據指導意見，與硬比較相比，您仍然認為第四季度同比下降了一點。但上一年的競爭在 23 財年上半年（下一年）變得更加困難。那麼，從定性的角度來看，我們應該如何思考這一點？因為這種比較會變得更加困難，即使你有很多驅動程序，也許會擴展 Keys Soulcare 和其他正在發生的事情。那麼，我們應該如何總體上看待 23 財年上半年的增長呢？

Yes. So let me start with Q4, because that's what we've given guidance for. So Q4, we're really anchoring on a 2-year stack number. So to your point, even the guidance implies a little bit negative for Q4, but on a 2-year stack basis it's still very strong, up 23% is what's implied. And then when I look at the full year of fiscal '22, 19% on the top end is still north of 30% on a 2-year stack basis. So a very strong overall performance.

是的。讓我從第四季度開始，因為這就是我們給出的指導。所以第四季度，我們確實錨定了 2 年的堆棧數字。因此，就您的觀點而言，即使指引對第四季度有一點負面影響，但在 2 年堆棧基礎上，它仍然非常強勁，暗示增長 23%。然後，當我查看 22 財年的全年數據時，按照 2 年堆棧計算，高端的 19% 仍然高於 30%。所以整體表現非常強勁。

In terms of what to expect when we get into the first half of next year, again, we're just going to have to wait until we give guidance for fiscal '23. But what I can say, and to Tarang's earlier points, we do feel very confident on our spring innovation. The signals that we're seeing is that, that will continue to be strong even before it's in broad distribution. Our Power Grip Primer is the #1 item on our elfcosmetics.com. So really seeing some positive signals there. And things may be volatile, as we've talked about. In March and April, very strong consumption results in Nielsen data. And so we expect some volatility there. But I don't think that's reflective at all of our core business momentum. We really feel that, that still remains very strong.

至於明年上半年的預期，我們只能等到 23 財年給出指導。但我可以說的是，對於 Tarang 之前的觀點，我們確實對我們的彈簧創新充滿信心。我們看到的信號是，即使在廣泛分發之前，它也將繼續強勁。我們的 Power Grip Primer 是 elfcosmetics.com 上排名第一的商品。所以確實看到了一些積極的信號。正如我們所討論的，事情可能會不穩定。尼爾森數據顯示，三月和四月消費非常強勁。因此，我們預計那裡會出現一些波動。但我認為這並不能反映我們所有的核心業務勢頭。我們確實感覺到，這一點仍然非常強勁。

The next question is from Oliver Chen with Cowen.

下一個問題是 Oliver Chen 和 Cowen 提出的。

This is Jonna on for Oliver. Just curious, it looks like e.l.f. skin care is really gaining a lot of momentum. And how do you balance the shelf space between skin care and cosmetics at different retailers? And another question is, I know you're expecting 15% to 17% range for marketing spend with Keys Soulcare starting this year. But going forward, do you think that's sort of the right level to think about, especially as you're sort of lapping Keys Soulcare launch?

這是奧利弗的喬娜。只是好奇，看起來像 e.l.f.皮膚護理確實獲得了很大的發展勢頭。如何平衡不同零售商的護膚品和化妝品之間的貨架空間？另一個問題是，我知道您預計從今年開始 Keys Soulcare 的營銷支出將達到 15% 到 17%。但展望未來，您認為這是值得考慮的正確水平嗎，特別是當您正在推出 Keys Soulcare 時？

I'll take the first part of that question. In terms of skin care, we are seeing great momentum. So I mentioned our consumption trends for the quarter. It was also the first quarter that e.l.f. skin became a top 20 skin care brands. So that was a pretty good milestone for us. In terms of how we manage shelf space, I'd say we are dramatically underspaced at pretty much every retailer we do business with. So the way we manage it is basically seek greater shelf space and get more of our skincare assortment in. And that varies customer by customer. I would say our most developed skin care business is probably at Target where we've been the longest and we have the biggest footprint. We're able to shelf e.l.f. skin within our existing sets, and as Target over time has given us more space, it's given us greater opportunity to get more skin care in as well as many of our other products.

我將回答這個問題的第一部分。在皮膚護理方面，我們看到了巨大的勢頭。所以我提到了我們這個季度的消費趨勢。這也是 e.l.f. 的第一季。 Skin成為20大護膚品牌之一。所以這對我們來說是一個非常好的里程碑。就我們如何管理貨架空間而言，我想說，幾乎所有與我們有業務往來的零售商的貨架空間都嚴重不足。因此，我們的管理方式基本上是尋求更大的貨架空間並放置更多我們的護膚品品種。這因客戶而異。我想說，我們最發達的護膚業務可能是塔吉特，在那裡我們經營時間最長，足跡也最大。我們可以把 e.l.f. 擱置起來。隨著時間的推移，Target 為我們提供了更多的空間，讓我們有更多的機會獲得更多的護膚品以及我們的許多其他產品。

At Ulta Beauty, they've given us incremental space for skin care in their skincare set. And so we'll be taking a look there depending on what happens with space over time, whether we integrate it in within our existing e.l.f. set, where we do keep it in a separate spot. So I think we're going to continue to learn our way there. But the unifying theme is we -- as we pick up more space, it gives us even more opportunity to get more skin and more of other innovation into retailers, and that's what our real focus is.

在 Ulta Beauty，他們在護膚套裝中為我們提供了更多的皮膚護理空間。因此，我們將根據空間隨著時間的推移發生的情況來觀察那裡，是否我們將其整合到我們現有的 e.l.f. 中。設置，我們確實將其保存在單獨的位置。所以我認為我們將繼續學習我們的方式。但統一的主題是我們——當我們獲得更多的空間時，它給了我們更多的機會，讓零售商獲得更多的皮膚和更多的其他創新，這就是我們真正的重點。

And then on your question on marketing spend, we feel great about that 15% to 17% range. We have a number of high ROI activations that really supports that level of investment. And I think what you'll see from us is continuing to balance investing in marketing and digital with our desire to grow EBITDA, just as you've seen us do this year. And so that 15% to 17% feels right to us right now.

關於您關於營銷支出的問題，我們對 15% 到 17% 的範圍感到滿意。我們有許多高投資回報率的活動，可以真正支持這種投資水平。我認為您將從我們身上看到的是，我們將繼續平衡營銷和數字化投資與增長 EBITDA 的願望，就像您今年看到的那樣。所以我們現在感覺 15% 到 17% 是合適的。

The next question is from Jon Andersen with William Blair.

下一個問題是喬恩·安德森和威廉·布萊爾提出的。

Congrats on the quarter. My first question is about the elfcosmetics.com business. You mentioned Beauty Squad membership is up, I think, 20% year-over-year. You're approaching 3 million members. And Tarang, you talked to the importance of the first-party data that, that provides. How are you using that first-party data to kind of support or enhance your targeting and conversion efforts? Just in a kind of a big picture way, trying to understand what that's helping you do maybe better, faster than you've done in the past?

恭喜本季度。我的第一個問題是關於 elfcosmetics.com 業務的。您提到 Beauty Squad 會員人數同比增加了 20%。您的會員數量已接近 300 萬。 Tarang，您談到了所提供的第一方數據的重要性。您如何使用第一方數據來支持或增強您的定位和轉化工作？只是以一種大局觀的方式，試圖了解什麼可以幫助你比過去做得更好、更快？

Jon, well, Beauty Squad is a critical program for us. We're proud of the 2.7 million members we have, the 20% growth year-over-year. But also the experience that program is generating for our core users. These are the consumers that make up 70% of our sales on elfcosmetics.com. They also are the source of core insight and inspiration for all of our various activities. So we've often talked about many of our unique collaborations that we do, whether it be the e.l.f. Chipotle collaboration or one I'm particularly excited about right now is the partnering that we've done with Simon Fuller and finding the next big pop group on TikTok, the Future X. Our latest hashtag challenge there, #elfitup, in a week after placing that hashtag challenge, I think, is up to 7 billion views.

喬恩，嗯，選美隊對我們來說是一個重要的項目。我們為擁有 270 萬會員而感到自豪，會員數量同比增長 20%。還有該計劃為我們的核心用戶帶來的體驗。這些消費者佔 elfcosmetics.com 銷售額的 70%。它們也是我們所有各種活動的核心洞察力和靈感的源泉。所以我們經常談論我們所做的許多獨特的合作，無論是 e.l.f. Chipotle 合作或者我現在特別興奮的是我們與 Simon Fuller 的合作，並在 TikTok 上尋找下一個大型流行樂隊，Future X。我們最新的主題標籤挑戰是#elfitup，一周後我認為，放置主題標籤挑戰的瀏覽量高達70 億次。

A lot of the inspiration for the things we do come from that Beauty Squad Loyalty Program and what we're hearing our core user base wanting. So it's not just the behavior that we're seeing them from a shopping standpoint, but we also engage them. Part of how they earn points is the level of engagement with the brand, including insights on our new products, including some of the things that they're most interested in. So you'll continue to see us nurture that program, build in additional functionality in it, and enhance the data set that we get because it really drives well beyond elfcosmetics.com. It really drives all of our activities, including with our national retailers.

我們所做的事情的很多靈感都來自 Beauty Squad 忠誠計劃以及我們聽到的核心用戶群的需求。因此，我們不僅從購物的角度看待他們的行為，而且還與他們互動。他們賺取積分的部分原因是與品牌的互動程度，包括對我們新產品的見解，包括他們最感興趣的一些東西。因此，您將繼續看到我們培育該計劃，建立額外的項目它的功能，並增強我們獲得的數據集，因為它確實遠遠超出了elfcosmetics.com。它確實推動了我們所有的活動，包括與我們的全國零售商的活動。

That's helpful. With respect to the digital shift, you mentioned earlier that the digital portion of the business has come down a little bit, I think, to 14% in the current quarter versus 16% a year ago. Not unexpected, I guess, given the kind of consumer behavior changes. But does that have -- remind me, what are the margin implications or are there margin implications in that channel mix shift as that kind of plays out?

這很有幫助。關於數字化轉型，您之前提到，我認為本季度業務的數字化部分下降至 14%，而一年前為 16%。考慮到消費者行為的變化，我想這並不意外。但這是否提醒我，利潤率影響是什麼，或者隨著這種情況的發生，渠道組合轉變是否對利潤率產生影響？

Yes. So we've talked before about a shift in digital. It really is a benefit from a gross margin standpoint. But by the time you add in marketing and some of the warehousing and things like that, it's a pretty neutral impact to operating margins. So it would be a benefit as we shift more into digital on the gross margin line. That's how I think about that.

是的。所以我們之前討論過數字化的轉變。從毛利率的角度來看，這確實是一個好處。但當你添加營銷和一些倉儲以及類似的東西時，這對營業利潤率的影響相當中性。因此，當我們在毛利率線上更多地轉向數字化時，這將是一個好處。我就是這麼想的。

Great. That's helpful. Last one for me is on portfolio management. And Mandy, you pointed out the kind of the -- the strength of the balance sheet, the strong liquidity position you're in. How do you think about using capital for supporting your -- the extensions, adding brands versus reinvestment in kind of the 5 strategic initiatives around the 3 brands you own? I mean what should we expect? Is it purely kind of opportunistic on the M&A side? Are there some very targeted things you're looking to fill within the portfolio? Just trying to get a sense for how that liquidity or capital may be applied going forward?

偉大的。這很有幫助。我的最後一個主題是投資組合管理。曼迪，你指出了資產負債表的實力，以及你所處的強大的流動性狀況。你如何考慮使用資本來支持你的——擴展、增加品牌而不是再投資圍繞您擁有的3 個品牌的5 項戰略舉措？我的意思是我們應該期待什麼？這純粹是併購方面的機會主義嗎？您希望在投資組合中填寫一些非常有針對性的內容嗎？只是想了解未來如何應用流動性或資本？

Yes. So you're absolutely right, Jon. We'll be focused on our strategic imperatives and continuing to support those and then also on the strategic extension side. And so as Tarang gave a little bit of color around, we have looked at targets more recently and we'll continue to do so. I think that anything that expands a capability or brings us new capability like we picked up with the W3LL People or allows us to go into different category adjacencies would be interesting to us. I think the great thing is that we have such strong organic growth across our current portfolio of brands, we're not in a rush to add to our portfolio. We will be very choiceful and very disciplined for whatever brand we decide to go after.

是的。所以你是完全正確的，喬恩。我們將專注於我們的戰略需求並繼續支持這些需求，然後也在戰略擴展方面。因此，當塔朗（Tarang）給出了一些顏色時，我們最近研究了目標，並且我們將繼續這樣做。我認為任何擴展能力或給我們帶來新能力的東西（就像我們從 W3LL People 中學到的那樣）或允許我們進入不同類別的鄰接領域都會讓我們感興趣。我認為最棒的是，我們當前的品牌組合擁有如此強勁的有機增長，我們並不急於增加我們的品牌組合。對於我們決定追求的任何品牌，我們都會非常有選擇，並且非常自律。

And so I think that you'll continue to see that from us. We're going to be looking at things but only where it makes sense. Cultural fit and things of that nature are super important to us, and we don't want to move too quickly on something and take a look back and not love it. So we are very disciplined in this area. And as Tarang mentioned, W3LL People was intentionally small. As we look forward, we may look at things that are a little bit bigger than that, something with more scale and really looking to kind of expand our top line and bottom line with any other acquisition that we kind of bring into the portfolio.

所以我認為您會繼續從我們身上看到這一點。我們將關註一些事情，但僅限於有意義的地方。文化契合度和類似性質的事物對我們來說非常重要，我們不想在某件事上進展得太快，然後回顧過去而不喜歡它。所以我們在這方面非常自律。正如 Tarang 提到的，W3LL People 故意縮小規模。展望未來，我們可能會關注比這更大一點的事情，規模更大的事情，並且真正希望通過我們納入投資組合的任何其他收購來擴大我們的營收和利潤。

Well said, the strength of the core business affords you the ability to be patient.

說得好，核心業務的實力讓你有耐心。

The next question is from Wendy Nicholson with Citi.

下一個問題來自花旗集團的溫迪·尼科爾森。

I just wanted to follow up on that sort of line of questioning on the M&A front. I mean I think discipline is great. But just for me, can you talk about sort of the managerial bandwidth, if you will? I mean the acquisitions you're making, it's not like you're bringing in brands that then you just incubate and they operate independently. I mean, Tarang and Mandy, it feels like you've got your fingers and tentacles in each of these brands. And I think W3LL People has taken a little while to really ramp up. So just in terms of how important it is to you, because I don't think of you as a serial acquirer. Is that a bigger part of the story going forward? I think it would be helpful to just clarify how much of a priority that is or is not. Because I think there's a risk, obviously, that you get too broad and you expand yourself too far afield and you have too much going on, and you lose focus on the core, if you will. So can you just clarify kind of how important M&A is to you right now?

我只是想跟進併購方面的此類問題。我的意思是我認為紀律很棒。但就我而言，如果您願意的話，您能談談管理帶寬嗎？我的意思是，你正在進行的收購，並不是引入品牌，然後你只是孵化它們並獨立運營。我的意思是，Tarang 和 Mandy，感覺就像你的手指和触手都涉足了這些品牌。我認為 W3LL People 花了一些時間才真正進步。所以就這對你來說有多重要而言，因為我不認為你是一個連續收購者。這是未來故事的更重要部分嗎？我認為澄清一下優先事項的優先級有多少是有幫助的。因為我認為顯然存在這樣的風險：你的範圍太寬泛，你把自己擴展到太遠的地方，你要做的事情太多，如果你願意的話，你就會失去對核心的關注。那麼您能否澄清一下併購現在對您來說有多重要？

Yes, Wendy, so I'll take this one. I would say, look, our predominant focus is on our core business and e.l.f. pays all the bills, e.l.f. is the thing that we have a tremendous amount of white space on, both e.l.f. Cosmetics as is e.l.f. skin. So I'd say the vast majority of our company managerial attention is on those. In terms of our strategic extensions, the way we manage them is very similar to other consumer environments I've been in. Most of us have multi-brand experience of portfolio of brands. And we make sure that the consumer-facing part of those brands we've resourced for. They have distinct kind of brand managers, distinct kind of innovation talent associated with it, but then leveraging the rest of the chassis that we have. We have an incredible operations chassis, same with kind of our innovation platform, where we feel we could take on a few more brands without any serious issues from a managerial standpoint.

是的，溫迪，所以我要這個。我想說，看，我們的主要關注點是我們的核心業務和 e.l.f.支付所有賬單，e.l.f.是我們有大量空白的東西，無論是 e.l.f.化妝品原樣 e.l.f.皮膚。所以我想說，我們公司管理層的絕大多數注意力都集中在這些方面。就我們的戰略延伸而言，我們管理它們的方式與我經歷過的其他消費者環境非常相似。我們大多數人都有品牌組合的多品牌經驗。我們確保我們為這些品牌提供資源的面向消費者的部分。他們擁有獨特的品牌經理、與之相關的獨特的創新人才，然後利用我們擁有的其餘基礎。我們擁有令人難以置信的運營基礎，與我們的創新平台相同，我們認為從管理角度來看，我們可以承擔更多品牌，而不會出現任何嚴重問題。

But from a focus standpoint, you obviously see the momentum over the last 3 years on the e.l.f. brand and that becomes our biggest area of focus. But we like what we've seen in terms of the strategic extensions we've done. We've been able to manage them well, be able to leverage the chassis where it makes sense and then let them move on their own on the other hand in terms of how they go to market and what we're able to do.

但從焦點的角度來看，你顯然可以看到 e.l.f 過去 3 年的勢頭。品牌，這成為我們最大的關注領域。但我們喜歡我們所看到的戰略擴展。我們能夠很好地管理它們，能夠在有意義的地方利用底盤，然後讓它們自行發展，另一方面就它們如何進入市場以及我們能夠做什麼而言。

Fair enough. Fair enough. That's reasonable, certainly. But the other question I had just in terms of that statement, e.l.f. pays the bills. Just a question on the pricing. I mean I remember the days, I think, once upon the time, you guys priced everything out of the e.l.f. brand at $3. Obviously, the brand has just exploded in terms of consumer awareness and relevance and you've done a phenomenal job on the innovation side. In contemplating the pricing that you're taking on the e.l.f. brand specifically, how much flexibility do you have? I know that it's cost driven, but how much flexibility do you have to pull back on pricing or step up promotion? What's your visibility that, gosh, if you're raising the prices just a little bit too much and you start to see some market share erosion, how quickly can you react? Or are you willing to cede some share to protect margins?

很公平。很公平。這當然是合理的。但我根據該聲明提出的另一個問題是 e.l.f.支付賬單。只是關於定價的問題。我的意思是，我記得那些日子，我想，從前，你們把一切都從精靈身上定價了。品牌售價3美元。顯然，該品牌在消費者認知度和相關性方面剛剛爆發，並且您在創新方面做得非常出色。在考慮您對 e.l.f. 的定價時。具體來說，您的品牌有多少靈活性？我知道這是成本驅動的，但是您在降低定價或加強促銷方面有多大的靈活性？天哪，如果你把價格提高得有點太多，並且你開始看到一些市場份額被侵蝕，你能多快做出反應？或者您願意放棄一些份額以保護利潤？

Yes. Well, like everything at e.l.f., we move at e.l.f. speed, so we can react quite fast. And I'll take you back to our 2019 price increase, which I mentioned, was quite successful. This is a brand that definitely has pricing power. We -- in that price increase, we had some items we had taken up $2 and quickly concluded that was too big a price increase and we quickly rolled those back down. And we did not actually lose market share in that process. We gained market share throughout that.

是的。嗯，就像 e.l.f. 的一切一樣，我們在 e.l.f. 移動。速度，所以我們可以很快做出反應。我將帶您回顧一下我們 2019 年的提價，我提到過，這是非常成功的。這是一個絕對有定價權的品牌。我們——在那次漲價中，我們的一些商品漲價了 2 美元，但很快就得出結論，漲價幅度太大了，我們很快就將這些商品調低了。在此過程中我們實際上並沒有失去市場份額。我們在此過程中獲得了市場份額。

And so if we found that we overextended ourselves on certain items, it's very easy for us to adjust those items back to where they need to be, and we can move -- we're not afraid to kind of say what -- based on what the consumer experience is. Now our hope is the way we've approached this, which is really looking item by item relative to its key competitor, and where we can go $1 up on each of these, we'll see how they do. But if we found that we -- there is a subsegment of our portfolio we went too far on, it's easy enough for us to roll it back. But our intention is to continue to gain market share. We've been able to prove that even in a bad market. We're going to want to do that in a good market as the category improves. And so we feel, done right, pricing can be a good tool in that.

因此，如果我們發現我們在某些項目上過度擴張，我們很容易將這些項目調整回它們需要的位置，並且我們可以移動 - 我們不害怕說什麼 - 基於消費者體驗是什麼。現在我們的希望是我們解決這個問題的方式，相對於它的主要競爭對手，我們確實逐項查看，並且我們可以在每一項上提高 1 美元，我們將看看它們的表現如何。但如果我們發現我們的投資組合的某個部分做得太過分了，那麼我們很容易將其回滾。但我們的目的是繼續獲得市場份額。即使在市場不景氣的情況下，我們也能夠證明這一點。隨著品類的改善，我們希望在一個良好的市場中做到這一點。因此，我們認為，如果做得好，定價可以成為一個很好的工具。

The next question is from Mark Astrachan with Stifel.

下一個問題來自 Stifel 的 Mark Astrachan。

Two questions. One is, could you help us a bit in trying to understand the reported sales in the context of tracked versus untracked growth? I think if you look at the last couple of quarters before the December quarter, that your growth was decently in excess of what we saw in the scanner data. This quarter, it was below even taking into account the holiday set. So can you just kind of talk to how to think about that? What sort of dynamics grow a bit of relatively slower growth in the overall numbers versus the scanner data versus untracked, I guess, is probably the better way to think about it in the December quarter?

兩個問題。一是，您能否幫助我們嘗試了解跟踪增長與非跟踪增長背景下報告的銷售額？我認為，如果您查看 12 月季度之前的最後幾個季度，您的增長遠遠超過了我們在掃描儀數據中看到的增長。本季度，即使考慮到假期，這一數字仍低於預期。那麼你能談談如何思考這個問題嗎？我想，與掃描儀數據相比，與未跟踪的數據相比，哪種動態增長相對較慢，這可能是在 12 月份季度考慮這個問題的更好方法？

Yes. So the difference this quarter is really a function of what we saw in the base last year for both net sales and consumption. So in Q3 last year, we posted a positive 10% net sales growth with consumption down 2%. And that's why I anchored on the 2-year stack in our prepared remarks. So when you take Q3 on a 2-year stack basis, we were up 20% and up 15% of consumption. So sales pacing a bit ahead of consumption, which I think is more in line with what folks expect to see. I think over the long term, shipments and consumption will balance out, but sometimes there are those nuances between quarters.

是的。因此，本季度的差異實際上是我們在去年的淨銷售額和消費基數中看到的函數。因此，去年第三季度，我們的淨銷售額增長了 10%，而消費下降了 2%。這就是為什麼我在準備好的發言中重點關注兩年的堆棧。因此，當你以 2 年堆棧為基礎來看第三季度時，我們的消費量分別增長了 20% 和 15%。因此，銷售速度略快於消費速度，我認為這更符合人們的預期。我認為從長遠來看，出貨量和消費量將會平衡，但有時季度之間會存在細微差別。

Got it. And so just following up on that, anything to point out from an international standpoint? I know you called it out in the press release, but is relative growth kind of similar to what you saw last quarter?

知道了。那麼接下來，從國際角度來看有什麼需要指出的嗎？我知道您在新聞稿中指出了這一點，但相對增長是否與您上季度看到的類似？

Yes. International growth still remained strong for Q3, and we continue to see growth in those markets with those customers.

是的。第三季度國際增長仍然強勁，我們繼續看到這些市場和這些客戶的增長。

Got it. And one more before the dog barks at me again. Do you expect any pull-forward of sales for the pricing that you just announced? Is that contemplated in the guidance for the next quarter?

知道了。在狗再次對我狂吠之前，再來一回。您預計您剛剛宣布的定價會帶來銷售增長嗎？下季度的指導中是否考慮到了這一點？

We don't typically see anything like that like a forward buy or anything like that from our customers. So no, we don't really expect to see anything like that.

我們通常不會從客戶那裡看到類似的遠期購買或類似的東西。所以不，我們真的不希望看到這樣的事情。

The next question is from Korinne Wolfmeyer with Piper Sandler.

下一個問題是科琳·沃爾夫邁耶 (Korinne Wolfmeyer) 和派珀·桑德勒 (Piper Sandler) 提出的。

Congrats on the quarter. So I wanted to dig a little bit on pipeline and R&D investments beyond what you have going on this spring. Just where do you think you'll be focusing the bulk of that spending going forward? Like which brands, which products? And then how should we be thinking about the cadence of the new product introductions going forward?

恭喜本季度。因此，我想深入了解今年春天以外的管道和研發投資。您認為未來的大部分支出將集中在哪裡？喜歡哪些品牌、哪些產品？那麼我們應該如何考慮未來新產品推出的節奏呢？

Yes. So Korinne, our innovation program is one of the key strengths of our company. And part of the strength of that innovation beyond being able to have Prestige quality, the extraordinary prices is we innovate pretty broadly. As I mentioned, we innovate across each of our core segments and skin care, W3LL People and Keys Soulcare. The -- so I would say the cadence of that innovation, you typically see, it's really continuous throughout the year. The big seasons are our spring season when spring resets happen, but we're launching new products all the time on elfcosmetics.com, keyssoulcare.com, wellpeople.com. And that, in turn, gives us the data from which to make a lot of our core assortment decisions for the big resets between the spring and fall.

是的。因此，Korinne，我們的創新計劃是我們公司的關鍵優勢之一。除了享有聲望的品質和非凡的價格之外，創新的部分優勢在於我們進行了相當廣泛的創新。正如我所提到的，我們在每個核心細分市場和皮膚護理、W3LL People 和 Keys Soulcare 上進行創新。所以我想說，這種創新的節奏，你通常會看到，它確實全年持續。最重要的季節是我們的春季，春季重置，但我們一直在 elfcosmetics.com、keysoulcare.com、wellpeople.com 上推出新產品。反過來，這為我們提供了數據，讓我們能夠在春季和秋季之間的重大重置中做出許多核心分類決策。

So I would say our innovation program has never been stronger. I take a look at the pipeline across really all 4 of our brands and they're quite robust. It gives me a lot of confidence, not only for this innovation we just launched in the spring, but I mentioned on a couple of other brands, W3LL People, our first entry into skin care with the first 5 plant-powered products. We have additional products behind that. Keys Soulcare continues to do a phenomenal job on an innovation standpoint. We launched more innovation in the body category. There'll be other categories that you'll see come out later this year. And so I feel it's an area we've really focused on over the years and, I'd say particularly in the last 3 years, really strengthened the innovation capabilities, not only in skin care but our ability to have the breadth of innovation that we do have as we go forward.

所以我想說我們的創新計劃從未如此強大。我查看了我們所有 4 個品牌的產品線，它們都非常強大。這給了我很大的信心，不僅是因為我們在春季剛剛推出的這項創新，而且我還提到了其他幾個品牌，W3LL People，我們首次涉足皮膚護理領域，推出了前5 款植物動力產品。我們在這背後還有其他產品。 Keys Soulcare 在創新方面繼續表現出色。我們在車身類別上推出了更多創新。今年晚些時候您還會看到其他類別的出現。所以我覺得這是我們多年來真正關注的一個領域，我想說特別是在過去的三年裡，真正加強了創新能力，不僅是在皮膚護理方面，而且是我們進行廣泛創新的能力，我們確實有前進的動力。

Got it. That's really helpful. And then just one more quick one. With the rebound of color cosmetics, is there any specific product or a group of products that have surprised you in terms of bouncing back or seem to have come back sooner than others?

知道了。這真的很有幫助。然後再快一點。隨著彩妝的反彈，有沒有哪個特定產品或一組產品的反彈讓你感到驚訝或者似乎比其他產品更早反彈？

I would say it's along my expectations. We knew Lip would have a moment right now as people took off their mask and could express more color. But at least for our business, we're seeing strength across each of our core segments. And so the trajectory I talked about earlier of when I take a look at the category beyond just kind of trends relative to pre-pandemic, what is the slope of what we're seeing, and we're seeing pretty good things across the category. Certainly, I think we're well positioned. We have strength in the face category, particularly with our latest innovation on Power Grip and our Camo foundations. I like what we're doing on eye, our Brow Lift is off to an incredible start.

我想說這符合我的期望。我們知道 Lip 現在會迎來一個時刻，因為人們摘下面具，可以表達更多的色彩。但至少對於我們的業務來說，我們看到了每個核心細分市場的實力。因此，我之前談到的軌跡，當我審視這一類別時，不僅僅是相對於大流行前的趨勢，我們所看到的斜率是多少，我們在整個類別中看到了相當好的事情。當然，我認為我們處於有利位置。我們在臉部類別方面擁有優勢，特別是我們在 Power Grip 和迷彩粉底方面的最新創新。我喜歡我們在眼部所做的事情，我們的提眉術有了一個令人難以置信的開始。

And even in lip, our Glossy Lip Stains, I think, again, phenomenal value at $6 versus a Prestige equivalent at $38. And you'll continue to see us make sure that we can also jump on any emerging trends that we see out there. We're starting to see good things on contouring. We have a very good business from our contouring palettes and a number of things there. So we'll stay close to the trends. But overall, I feel great about the portfolio of items we have.

即使是在唇部，我再次認為，我們的光澤唇彩的價格為 6 美元，而 Prestige 的同等價格為 38 美元。您將繼續看到我們確保我們也能趕上我們看到的任何新興趨勢。我們開始看到輪廓方面的好處。我們的輪廓調色板和那裡的許多東西的生意非常好。因此，我們將緊跟趨勢。但總的來說，我對我們擁有的產品組合感覺很好。

The next question is from Rupesh Parikh with Oppenheimer.

下一個問題是魯佩什·帕里克和奧本海默提出的。

So two questions on the pricing front. So first, in the mask category, have you seen others starting to take pricing? And then secondly, just on the philosophy in terms of, I guess, on the gross margin front in raising prices. Is the goal to maintain the gross margin rate and then other initiatives can help to drive expansion? Or could it be similar to last time where you guys took pricing and you ended up having very strong gross margin expansion as other initiatives also helped to drive the margin improvement?

關於定價方面的兩個問題。那麼首先，在面膜品類中，你是否看到其他人開始採取定價？其次，我想，就提價的毛利率方面的理念而言。目標是維持毛利率，然後採取其他舉措來幫助推動擴張嗎？或者是否會類似於上次你們定價時的情況，最終毛利率實現了非常強勁的增長，因為其他舉措也有助於推動利潤率的提高？

Yes. So Rupesh, similar to what happened in 2019, we led pricing. And so I don't think that many people followed us in 2019. We've heard more discussions, at least in our retailer discussions of a number of people taking pricing. So I don't have specifics on who else is potentially taking pricing, but we were not the first and -- nor I believe we will be the last. But the way we do our analysis is not really dependent on others having to take pricing. It really is on that relative value that we see in the marketplace even if no one took their pricing. And then on the second question, I'll turn it over to Mandy.

是的。因此，Rupesh，與 2019 年發生的情況類似，我們主導了定價。因此，我認為 2019 年沒有多少人關注我們。我們聽到了更多的討論，至少在我們的零售商關於許多人定價的討論中。因此，我不知道還有誰可能會定價，但我們不是第一個，而且我相信我們也不會是最後一個。但我們的分析方式並不真正依賴於其他人必須定價。即使沒有人接受他們的定價，我們在市場上看到的確實是相對價值。然後關於第二個問題，我將把它交給Mandy。

And on the gross margin point, so as we talked in our prepared remarks, and I'll take it back actually to 2019. When we take pricing, it is usually in reaction to something, a macro event. So in 2019, when we decided to take pricing, it was in response to tariffs. In May 2021, when we decided to take pricing, that was in response to some of the FX headwinds that we were feeling. So this time around, it has been driven by those elevated freight costs that we're seeing and overall cost inflation that we anticipate will be with us for a little while longer. And so that was the driver behind us taking pricing.

至於毛利率，正如我們在準備好的發言中談到的那樣，我實際上將其追溯到 2019 年。當我們定價時，它通常是對某些宏觀事件的反應。因此，在 2019 年，當我們決定採取定價時，這是為了應對關稅。 2021 年 5 月，當我們決定採取定價時，這是為了應對我們感受到的一些外匯不利因素。因此，這一次，它是由我們看到的貨運成本上升以及我們預計將持續一段時間的總體成本通脹推動的。這就是我們定價背後的驅動力。

So our goal really is to help to offset some of those costs that we're seeing. How that builds in overall gross margin? Again, I think we'll have more color on that when we come back in May with our fiscal '23 guidance.

因此，我們的目標實際上是幫助抵消我們所看到的一些成本。這如何影響整體毛利率？再次強調，當我們在 5 月份發布 23 財年指導時，我們將會對此有更多的闡述。

This concludes our question-and-answer session. I would like to turn the conference back over to Tarang Amin for any closing remarks.

我們的問答環節到此結束。我想將會議轉回塔朗·阿明發表閉幕詞。

Well, thank you, everyone, for joining us today. Again, I'm so grateful to the incredible team we have at e.l.f. Beauty for again delivering outstanding results. We look forward to seeing some of you at some of the upcoming investor meetings and speaking with you in May, when we'll talk our fourth quarter results and fiscal '23 outlook. Thanks, everyone, and be well.

好的，謝謝大家今天加入我們。再次，我非常感謝 e.l.f. 令人難以置信的團隊。美麗再次帶來出色的效果。我們期待在即將舉行的一些投資者會議上見到你們，並在 5 月份與你們交談，屆時我們將討論我們的第四季度業績和 23 財年展望。謝謝大家，祝一切順利。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。