elf Beauty Inc (ELF) 2022 Q2 法說會逐字稿

Thank you for joining us to discuss e.l.f. Beauty's Second Quarter Fiscal 2022 results. I'm Melinda Fried, Head of Corporate Communications.

感謝您加入我們討論 e.l.f.Beauty 2022 財年第二季度業績。我是梅琳達·弗里德，企業傳播主管。

With me are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.

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。

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.

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 today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements. In addition, the company's presentation includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of these differences between the non-GAAP presentation and the most directly comparable GAAP measure.

由於我們今天的許多言論都包含前瞻性陳述，請參閱我們向美國證券交易委員會提交的收益報告和報告，您會發現可能導致實際結果與這些前瞻性陳述存在重大差異的因素。此外，該公司的演示文稿還包括按非公認會計原則（Non-GAAP）計算的信息。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 Q2 results as well as our raised outlook for fiscal 2022.

謝謝梅琳達，大家下午好。今天，我們將討論第二季度業績的驅動因素以及我們上調的 2022 財年前景。

I want to start by recognizing our e.l.f. Beauty team. We delivered another terrific quarter. Q2 net sales of $92 million were up 27% versus a year ago, marking our 11th consecutive quarter of net sales growth.

我想從認識我們的 e.l.f 開始。美容團隊。我們又交付了一個出色的季度。第二季度淨銷售額為 9200 萬美元，比去年同期增長 27%，標誌著我們的淨銷售額連續第 11 個季度增長。

We delivered adjusted EBITDA of $18 million, up 29% versus a year ago. With the momentum we're seeing, we're raising our full year sales guidance, which Mandy will discuss shortly. Our products are resonating, and our digitally led strategy, core value proposition and ability to adapt at e.l.f. speed continue to fuel our performance.

我們的調整後 EBITDA 為 1800 萬美元，比去年同期增長 29%。憑藉我們所看到的勢頭，我們正在提高全年銷售指導，曼迪將很快討論這一點。我們的產品引起共鳴，我們的數字主導戰略、核心價值主張和 e.l.f. 的適應能力。速度繼續推動我們的業績。

In Q2, color cosmetics category trends were slightly below 2019 pre-pandemic levels, with COVID-related volatility offsetting pent-up demand and stepped-up levels of innovation. We're significantly outperforming our competitors in this backdrop, underscoring the strength of the e.l.f. business model.

第二季度，彩妝品類趨勢略低於 2019 年大流行前的水平，與新冠病毒相關的波動抵消了被壓抑的需求和創新水平的提高。在這種背景下，我們的表現明顯優於競爭對手，這凸顯了 e.l.f. 的實力。商業模式。

In Q2, e.l.f. was again the only top 5 color cosmetics brand to post retail sales growth above 2019 levels. e.l.f. continued to gain market share with 5.6% of the category, up 30 basis points year-over-year, and was the only top 5 color cosmetics brand to grow share above pre-pandemic levels by a wide margin.

在第二季度，e.l.f.再次成為前 5 名彩妝品牌中唯一零售額增速高於 2019 年水平的品牌。e.l.f.繼續以 5.6% 的市場份額獲得市場份額，同比增長 30 個基點，並且是排名前五的彩妝品牌中唯一一個份額大幅高於疫情前水平的品牌。

Strategic extensions continue to be an important part of our evolution into a differentiated multi-brand beauty company. We're encouraged by the progress we're making with W3LL PEOPLE and Keys Soulcare as we build brand awareness.

戰略擴展仍然是我們發展成為差異化多品牌美容公司的重要組成部分。在我們建立品牌知名度的過程中，我們與 W3LL PEOPLE 和 Keys Soulcare 取得的進展令我們深受鼓舞。

We recently launched W3LL PEOPLE's first skin care collection, expanding our product range in the largest category of clean beauty.

我們最近推出了 W3LL PEOPLE 的首個護膚系列，擴大了我們在清潔美容這一最大類別中的產品範圍。

We also completed our first consumer insight study for Keys Soulcare that showed strong consumer response to our product quality, giving us increased confidence in the long-term opportunity as we accelerate trial and awareness for this brand. Our relentless focus on our 5 strategic imperatives is driving results across our brand portfolio.

我們還完成了針對 Keys Soulcare 的首次消費者洞察研究，該研究顯示消費者對我們的產品質量反應強烈，隨著我們加快對該品牌的試用和認知度，我們對長期機會的信心增強。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。

Let me provide a few highlights from the quarter. 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. We joined forces with recording artist Tierra Whack to launch our new Big Mood Mascara. Mascara is the largest segment within cosmetics and a significant white space opportunity for e.l.f.

讓我提供本季度的一些亮點。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。我們與唱片藝術家 Tierra Whack 聯手推出了全新 Big Mood 睫毛膏。睫毛膏是化妝品中最大的細分市場，對於 e.l.f. 來說也是一個重要的空白機遇。

With the launch of Big Mood, we're offering big, bold and beautiful lashes at an incredible price point. Big Mood is priced at just $7 compared to higher-priced top 5 mascaras. We're encouraged by the early results we're seeing with Big Mood. Big Mood is the #1 selling eye product on elfcosmetics.com since launch, and it also won the coveted Allure Best of Beauty 2021 award for Best Mascara Beauty Steal.

隨著 Big Mood 的推出，我們以令人難以置信的價格提供大而大膽且美麗的睫毛。與價格較高的 5 款睫毛膏相比，Big Mood 的售價僅為 7 美元。Big Mood 的早期成果讓我們深受鼓舞。自推出以來，Big Mood 一直是 elfcosmetics.com 上銷量第一的眼部產品，它還贏得了令人垂涎的 Allure Best of Beauty 2021 最佳睫毛膏美容獎。

Also during the quarter, we enjoyed a pop culture moment with our branded view on the game show Jeopardy.

同樣在本季度，我們在遊戲節目《危險邊緣》中通過我們的品牌觀點享受了流行文化時刻。

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While Matt Amodio's answer was wrong, a rarity for what would be a 38-time winner, we quickly capitalized on the moment in social media. Our team made fast friends with Matt, and our social channels went live the next morning with ears. lips. face. branding. Our digital community and the media took notice, with engagements soaring in the days have followed. In the end, we donated the $8,000 Matt lost on his wrong answer to Dress for Success, proving we can have some fun and advance our purpose.

雖然馬特·阿莫迪奧的答案是錯誤的，這對於 38 次獲獎者來說是罕見的，但我們很快就利用了社交媒體上的這一時刻。我們的團隊與馬特很快成了朋友，我們的社交頻道第二天早上就上線了。嘴唇。臉。品牌推廣。我們的數字社區和媒體注意到了這一點，在接下來的幾天裡參與度飆升。最後，我們捐贈了 Matt 因對 Dress for Success 的錯誤答案而損失的 8,000 美元，這證明我們可以享受一些樂趣並推進我們的目標。

Our recently launched e.l.f. value campaign is yet another example of how our team translates social listening and consumer insights into action.

我們最近推出了 e.l.f.價值活動是我們團隊如何將社交聆聽和消費者洞察轉化為行動的另一個例子。

According to internal studies, 66% of consumers believe that value is the most important factor when buying makeup. Leveraging this insight, we launched a value campaign to underscore our unbeatable value. Using a platform native, user-generated content production style, we set out to show the world that looking good doesn't need to cost extra.

根據內部研究，66%的消費者認為價值是購買化妝品時最重要的因素。利用這一洞察力，我們發起了一項價值活動，以強調我們無與倫比的價值。使用平台原生的、用戶生成的內容製作風格，我們開始向世界展示，好看並不需要額外花費。

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The consumer response has been phenomenal, with view-through rates significantly exceeding benchmarks across multiple social platforms. Our e.l.f. value campaign aligns with our mission to make the best of beauty accessible to every eye, lip and face.

消費者的反應非常熱烈，多個社交平台的瀏覽率顯著超過基準。我們的 e.l.f.價值活動與我們的使命相一致，即讓每個眼睛、嘴唇和臉部都能享受到最好的美麗。

Our brand-building efforts continue to gain recognition. In Piper Sandler's semiannual teen survey, e.l.f. ranked as the #2 overall preferred makeup brand for teens and the #1 brand among average income teens, reflecting our growing appeal with Gen Z. Womenswear Daily recently awarded e.l.f. Beauty as the best-performing beauty company in 2021, putting us in admirable company with Nike and Target, who were recognized as the best performers in the fashion and retail categories.

我們的品牌建設努力不斷獲得認可。在 Piper Sandler 的半年度青少年調查中，e.l.f.被評為青少年總體首選化妝品品牌第二名和平均收入青少年第一品牌，這反映出我們對 Z 世代的吸引力不斷增強。 《女裝日報》最近榮獲 e.l.f.Beauty 被評為 2021 年表現最佳的美容公司，與 Nike 和 Target 並列，成為時尚和零售領域表現最佳的公司。

Looking at Keys Soulcare, our groundbreaking lifestyle beauty brand with Alicia Keys, we continue to build industry buzz. We garnered 6 billion global press impressions in the last quarter.

看看我們與 Alicia Keys 合作的開創性生活方式美容品牌 Keys Soulcare，我們繼續引起行業關注。上季度我們獲得了 60 億次全球媒體曝光。

Keys Soulcare product offerings were prominently featured as Alicia got ready for the 2021 Met Gala, helping her achieve a radiant glow underneath a bold red lip that turned heads all night long. The Met Gala moment increased traffic to our site by 45% that week.

艾麗西婭 (Alicia) 為 2021 年 Met Gala 做準備時，Keys Soulcare 產品佔據了顯著位置，幫助她在大膽的紅唇下煥發光芒，整晚都引人注目。Met Gala 時刻使我們網站的訪問量在那一周增加了 45%。

The brand continues to win awards. In Allure's Best of Beauty 2021 awards, Keys Soulcare Sacred Body Oil won Best Body Oil.

該品牌不斷獲獎。在 Allure 2021 年最佳美容獎中，Keys Soulcare Sacred Body Oil 榮獲最佳身體油獎。

We're also encouraged by the results we saw in our first consumer insight study for Keys Soulcare. It's clear the brand appeal is high, and consumers are responding to the brand's clean, high-quality ingredients, unique scents and sleek packaging.

我們對 Keys Soulcare 的首次消費者洞察研究中看到的結果也感到鼓舞。很明顯，該品牌的吸引力很高，消費者對該品牌乾淨、優質的成分、獨特的香味和時尚的包裝做出了反應。

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 basis relative to 2019 or pre-pandemic levels. We continue to see a channel shift between digital and brick-and-mortar in Q2, in line with our expectations.

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，相對於 2019 年或大流行前的水平，我們的數字消費趨勢在 2 年堆棧基礎上增長了三位數。我們繼續看到第二季度數字和實體之間的渠道轉變，這符合我們的預期。

Digital channels drove 12% of our business in Q2 as compared to 14% a year ago and 8% 2 years ago.

第二季度，數字渠道推動了我們業務的 12%，而一年前為 14%，兩年前為 8%。

On elfcosmetics.com, approximately 50% of our shoppers in Q2 were new consumers. Our new consumers continue to overindex on skin care and sign-ups for our Beauty Squad loyalty program. Beauty Squad now has over 2.6 million members, up nearly 30% year-over-year. Our loyalty members are a highly valuable part of our digital ecosystem. They have higher average order values, purchase more frequently and have stronger retention rates, and drive almost 70% of our sales on elfcosmetics.com.

在 elfcosmetics.com 上，第二季度大約 50% 的購物者是新消費者。我們的新消費者繼續過度關注皮膚護理和註冊我們的 Beauty Squad 忠誠度計劃。Beauty Squad目前擁有超過260萬會員，同比增長近30%。我們的忠誠會員是我們數字生態系統中非常有價值的一部分。他們的平均訂單價值更高，購買頻率更高，保留率更高，並且推動了 elfcosmetics.com 上近 70% 的銷售額。

We recently launched Beauty Squad 2.0, a recharged loyalty program featuring new branding, point structure, incentives to move up to top-tier status and dozens of new ways to engage and earn points. Our loyalty program is an integral source of first-party data, and we'll continue to look for ways to enhance our Beauty Squad experience.

我們最近推出了 Beauty Squad 2.0，這是一項忠誠度充值計劃，具有新的品牌、積分結構、晉升頂級地位的激勵措施以及數十種參與和賺取積分的新方式。我們的忠誠度計劃是第一方數據的重要來源，我們將繼續尋找增強 Beauty Squad 體驗的方法。

Our third strategic imperative is to lead innovation. Our superpowers that center on our ability to deliver 100% cruelty-free premium quality beauty products at accessible prices with broad appeal continue to resonate with consumers. e.l.f. Cosmetics saw ongoing success this quarter in our core segments: brushes, primers, concealers, brows and sponges, which make up approximately half of our sales. We have the #1 or 2 position in all 5 segments and continue to drive sales growth in each.

我們的第三個戰略要務是引領創新。我們的超級大國以能夠以平易近人的價格提供 100% 零殘忍的優質美容產品為中心，並具有廣泛的吸引力，持續引起消費者的共鳴。e.l.f.本季度，化妝品在我們的核心領域持續取得成功：刷子、底漆、遮瑕膏、眉毛和海綿，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。

Skin care remains a major focus across our brand portfolio. In Q2, e.l.f. skin care consumption was up 22% in tracked channels compared to a category that was up 7%.

護膚仍然是我們品牌組合的主要焦點。在第二季度，e.l.f.在跟踪渠道中，護膚品消費量增長了 22%，而其他類別的消費量增長了 7%。

In Piper Sandler's semiannual teen survey, e.l.f. skin moved up 4 spots to be the #13 favorite skin care brand for teens as we continue to build awareness with Gen Z.

在 Piper Sandler 的半年度青少年調查中，e.l.f.隨著我們繼續提高 Z 世代的認知度，skin 上升了 4 位，成為青少年最喜愛的護膚品牌第 13 名。

Our recently launched skin care collection for W3LL PEOPLE fuels our expansion in this category. Fans of W3LL PEOPLE have long hoped for skin care, and we're thrilled to offer this new plant-powered collection to our community.

我們最近推出的 W3LL PEOPLE 護膚系列推動了我們在這一類別的擴張。W3LL PEOPLE 的粉絲長期以來一直希望獲得皮膚護理，我們很高興為我們的社區提供這個新的植物動力系列。

W3LL PEOPLE skin care offers 5 new products with dermatologist-developed formulas that support long-term skin health and are infused with rich, plant-powered ingredients like snow mushroom, aloe juice and broccoli seed oil. With a decade-long heritage of creating cutting-edge, super-clean products, W3LL PEOPLE continues to raise the standard for high-performance, plant-powered clean beauty.

W3LL PEOPLE 護膚品提供 5 款新產品，採用皮膚科醫生開發的配方，支持長期皮膚健康，並註入豐富的植物成分，如雪蘑菇、蘆薈汁和西蘭花籽油。憑藉十年來創造尖端、超潔淨產品的傳統，W3LL PEOPLE 不斷提高高性能、植物動力潔淨美容的標準。

Our acquisition of W3LL PEOPLE significantly accelerated our efforts in clean beauty across our brand portfolio. W3LL PEOPLE brought us an in-house board-certified dermatologist, Dr. Renee Snyder, who was instrumental in developing Keys Soulcare as 100% clean from day 1. The acquisition also accelerated our clean journey on the e.l.f. brand, and we're excited to announce that e.l.f.'s product formulations will be 100% clean by year-end.

我們對 W3LL PEOPLE 的收購極大地加快了我們品牌組合在清潔美容方面的努力。W3LL PEOPLE 為我們帶來了一位內部委員會認證的皮膚科醫生Renee Snyder 博士，她從第一天起就在將Keys Soulcare 開發為100% 清潔的過程中發揮了重要作用。此次收購還加速了我們在e.l.f 上的清潔之旅。品牌，我們很高興地宣布 e.l.f. 的產品配方到年底將達到 100% 清潔。

Over the past several months, our team reformulated over 350 SKUs. There are now over 1,650 ingredients we do not use. While it'll take a number of months for these new formulations to roll out, we're excited to add 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.

在過去的幾個月裡，我們的團隊重新制定了 350 多個 SKU。現在有超過 1,650 種成分是我們不使用的。雖然這些新配方需要幾個月的時間才能推出，但我們很高興能夠為我們現有的超級大國增添力量。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。

Our fourth strategic imperative is driving productivity and space expansion with our retail partners. We continue to see shelf space opportunity. As we've previously reported, we're pleased with the space expansion we secured with CVS in fall 2021 and Walmart in spring 2022 in a subset of each of their doors. Internationally, we're also expanding our shelf space with Boots and Superdrug in the U.K. in spring 2022.

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。我們繼續看到貨架空間的機會。正如我們之前報導的那樣，我們對 2021 年秋季與 CVS 以及 2022 年春季與沃爾瑪在各自門店的部分區域實現的空間擴張感到滿意。在國際上，我們還將於 2022 年春季在英國擴大 Boots 和 Superdrug 的貨架空間。

International represents major white space at just 11% of our business today. Our performance in the U.K. shows that our focused international strategy is working. The latest Nielsen data shows e.l.f. now ranks #8 in mass cosmetics in the U.K., up from #12 last year, and continues to be the only top 10 brand to post growth.

目前，國際業務僅占我們業務的 11%。我們在英國的表現表明我們的重點國際戰略正在發揮作用。尼爾森最新數據顯示 e.l.f.目前在英國大眾化妝品中排名第 8 位，高於去年的第 12 位，並且仍然是前 10 名中唯一實現增長的品牌。

Keys Soulcare is elevating and accelerating our global retail strategy. We've launched the 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 Harrods, and in 8 countries across Western Europe with Douglas. We remain excited about the global potential we see for this brand.

Keys Soulcare 正在提升和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/地區推出了該品牌，其中在美國與Ulta Beauty 合作，在英國與Cult Beauty 和Harrods 合作，在西歐8 個國家/地區與Douglas 合作。我們對這個品牌的全球潛力仍然感到興奮。

We're also pleased that W3LL PEOPLE will gain its first in-line placement in a subset of Ulta Beauty stores in spring 2022, progressing from a limited edition end cap as part of Ulta's Conscious Beauty program.

我們還很高興 W3LL PEOPLE 將於 2022 年春季在 Ulta Beauty 部分商店中首次獲得在線展示位置，作為 Ulta Conscious Beauty 計劃的一部分，從限量版端蓋開始。

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 are facing a global container imbalance and port congestion, which are slowing shipments and increasing our transportation costs.

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。

I'm incredibly proud of the e.l.f. Beauty team for how we've navigated these challenges. In fact, Walmart recently asked us to share our key supply chain learnings with their vendor partners as we are early in making strategic supply chain decisions.

我為 e.l.f 感到無比自豪。美容團隊了解我們如何應對這些挑戰。事實上，沃爾瑪最近要求我們與他們的供應商合作夥伴分享我們的關鍵供應鏈經驗，因為我們處於製定戰略供應鏈決策的早期階段。

Back in August, we spoke about foregoing our 2021 holiday program and increasing our inventory levels to balance the strong consumer demand we're seeing with the longer lead times the industry is facing. As a result of making these early decisions, we've been able to maintain approximately 95% in-stock levels at our key retail partners. While the environment remains dynamic, we're pleased with how we have managed these global supply chain challenges.

早在 8 月份，我們就談到了取消 2021 年假期計劃並增加庫存水平，以平衡我們所看到的強勁消費者需求與行業面臨的更長交貨時間。由於做出這些早期決策，我們能夠在主要零售合作夥伴處維持大約 95% 的庫存水平。儘管環境仍然充滿活力，但我們對應對這些全球供應鏈挑戰的方式感到滿意。

Before I turn the call over to Mandy, let me provide a bit more perspective on the overall strategic framework of our company and brands. Our mission is to make the best of beauty accessible to every eye, lip and face. Underpinned by the foundational work behind our 5 strategic imperatives, the strength of the e.l.f. Cosmetics brand has allowed us to expand our portfolio with strategic extensions that support our purpose and values.

在將電話轉給 Mandy 之前，讓我對我們公司和品牌的整體戰略框架提供更多看法。我們的使命是讓每個眼睛、嘴唇和臉部都能享受到最好的美麗。在我們 5 項戰略要務背後的基礎工作的支撐下，e.l.f. 的力量。化妝品品牌使我們能夠通過戰略擴展來擴展我們的產品組合，以支持我們的宗旨和價值觀。

Today, we build brands designed to disrupt industry norms, shape culture and connect communities with positivity, inclusivity and accessibility. We believe our brand portfolio and the continued execution of our 5 strategic imperatives will fuel our ability to win.

如今，我們打造的品牌旨在顛覆行業規範、塑造文化，並以積極性、包容性和可及性將社區聯繫起來。我們相信，我們的品牌組合和 5 項戰略要務的持續執行將增強我們獲勝的能力。

I'll now turn the call over to Mandy.

我現在將電話轉給曼迪。

Thank you, Tarang. I'm pleased to share the highlights of our strong second quarter results and our fiscal 2022 outlook. We delivered Q2 net sales of $92 million, up 27% versus prior year, driven by broad-based strength in our national and international retailers.

謝謝你，塔朗。我很高興與大家分享我們強勁的第二季度業績和 2022 財年展望的亮點。在我們國內和國際零售商廣泛實力的推動下，我們第二季度的淨銷售額達到 9200 萬美元，比去年同期增長 27%。

Gross margin of 63% was down approximately 200 basis points compared to prior year. We saw gross margin benefits from cost savings and margin accretive mix. We also benefited from the price increases we implemented on a subset of our SKUs in May, mainly internationally.

毛利率為 63%，比上年下降約 200 個基點。我們看到了成本節約和利潤增值組合帶來的毛利率收益。我們還受益於 5 月份對部分 SKU 實施的提價（主要是國際範圍內的提價）。

These gross margin benefits were more than offset by changing FX rates and elevated transportation costs as we worked to navigate the global container imbalance. Overall, our gross margin rate came in a bit better than expected this quarter due to the timing of when the higher transportation costs flow through our P&L. That said, given these headwinds, we continue to expect gross margin to end the year below fiscal 2021.

在我們努力應對全球集裝箱失衡的過程中，匯率變化和運輸成本上升遠遠抵消了這些毛利率收益。總體而言，由於較高的運輸成本流經我們的損益表的時間，我們本季度的毛利率略好於預期。儘管如此，考慮到這些不利因素，我們仍然預計今年年底的毛利率將低於 2021 財年。

On an adjusted basis, SG&A as a percentage of sales was 49% compared to 51% last year. Our increased investment behind marketing and digital was more than offset by leverage in our non-marketing-related spend. Marketing and digital investment for the quarter was approximately 16% of net sales versus 15% a year ago.

調整後，SG&A 佔銷售額的百分比為 49%，而去年為 51%。我們在營銷和數字方面增加的投資被非營銷相關支出的槓桿所抵消。本季度的營銷和數字投資約占淨銷售額的 16%，而去年同期為 15%。

Q2 adjusted EBITDA was $18 million, up 29% versus last year, and adjusted EBITDA margin was approximately 20% of net sales. Adjusted net income was $11 million or $0.21 per diluted share compared to $8 million or $0.16 per diluted share a year ago.

第二季度調整後 EBITDA 為 1800 萬美元，比去年增長 29%，調整後 EBITDA 利潤率約為淨銷售額的 20%。調整後淨利潤為 1100 萬美元，即稀釋後每股收益 0.21 美元，而一年前為 800 萬美元，即稀釋後每股收益 0.16 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 $42 million in cash on hand compared to a balance of $41 million a year ago. Our current cash balance reflects paying down our revolving credit facility, reducing our overall debt by $13 million in the quarter.

我們的流動性仍然強勁，現金餘額和循環信貸額度合計約為 1.3 億美元。本季度結束時，我們手頭現金為 4,200 萬美元，而去年同期餘額為 4,100 萬美元。我們當前的現金餘額反映了我們還清了循環信貸額度，從而使本季度的總債務減少了 1300 萬美元。

Our ending inventory balance was $77 million, in line with our expectations, as compared to $64 million a year ago. As a reminder, last quarter, we spoke about anticipating higher inventory levels in September from 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.

我們的期末庫存餘額為 7700 萬美元，符合我們的預期，而一年前為 6400 萬美元。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等因素的綜合作用，預計9 月份的庫存水平將會更高。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 outlook for fiscal 2022. We now expect net sales growth of approximately 14% to 16% versus fiscal 2021, up from 12% to 14% previously. We continue to expect adjusted EBITDA between $66.5 million to $68 million, adjusted net income between $36 million and $37.5 million, and adjusted EPS of $0.65 to $0.68 per diluted share. We expect a fully diluted share count of approximately 55 million shares and our fiscal 2022 tax rate to be approximately 23% to 24%.

現在讓我們展望 2022 財年。我們現在預計淨銷售額較 2021 財年增長約 14% 至 16%，高於之前的 12% 至 14%。我們仍然預計調整後 EBITDA 在 6650 萬美元至 6800 萬美元之間，調整後淨利潤在 3600 萬美元至 3750 萬美元之間，調整後每股稀釋每股收益為 0.65 美元至 0.68 美元。我們預計完全稀釋後的股數約為 5500 萬股，2022 財年的稅率約為 23% 至 24%。

Let me provide you with more color on our planning assumptions for fiscal 2022. Our raised top line guidance largely reflects our outperformance in Q2 relative to our expectations. Looking to the second half, we remain mindful of the industry-wide container imbalance and the continued elevation in costs as a result.

讓我為您提供有關 2022 財年規劃假設的更多信息。我們上調的營收指引在很大程度上反映了我們第二季度的表現優於我們的預期。展望下半年，我們仍然關注全行業集裝箱失衡以及由此導致的成本持續上升。

As Tarang mentioned, we're proud of how our team has navigated these logistics to date. However, it remains a dynamic environment, and we believe it's prudent to continue to plan for supply chain constraints and elevated costs to impact us into the second half. As a result, even on the higher net sales growth outlook, we are holding our adjusted EBITDA expectations between $66.5 million to $68 million, in line with last quarter's outlook.

正如 Tarang 提到的，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。然而，它仍然是一個動態的環境，我們認為，繼續為下半年影響我們的供應鏈限制和成本上升做好計劃是謹慎的。因此，即使淨銷售額增長前景較高，我們仍將調整後 EBITDA 預期維持在 6650 萬美元至 6800 萬美元之間，與上季度的預期一致。

Against this backdrop of global cost pressures, we still expect to deliver healthy growth in adjusted EBITDA, up 9% to 11% year-over-year.

在全球成本壓力的背景下，我們仍預計調整後 EBITDA 將實現健康增長，同比增長 9% 至 11%。

We remain focused on what we can control. As we've discussed previously, we're taking actions to mitigate the impact of some of these costs on our financial performance, including through cost-savings initiatives and a sharper focus on key areas of our non-marketing SG&A spend.

我們仍然專注於我們可以控制的事情。正如我們之前所討論的，我們正在採取行動減輕其中一些成本對我們財務業績的影響，包括通過成本節約舉措和更加關注非營銷 SG&A 支出的關鍵領域。

From a cadence standpoint, we expect top line growth to be strong Q3 than in Q4. As a reminder, in Q4, we will be lapping a 24% net sales growth quarter which was helped in part by stimulus-related spending and pipeline sales associated with the launch of Keys Soulcare.

從節奏的角度來看，我們預計第三季度的營收增長將比第四季度強勁。提醒一下，第四季度，我們的淨銷售額將實現 24% 的增長，這在一定程度上得益於與刺激相關的支出以及與 Keys Soulcare 推出相關的管道銷售。

As discussed in August, while we expect top line growth to continue in Q3, we expect Nielsen-tracked channel data to likely show some periods of share losses, given volatility in the base and the lack of our annual holiday program. As a reminder, we made the decision to forgo our holiday program to prioritize core assortment in the face of the industry-wide container imbalance.

正如 8 月份所討論的，雖然我們預計第三季度營收將繼續增長，但考慮到基數波動和缺乏年度假期計劃，我們預計尼爾森跟踪的渠道數據可能會顯示某些時期的股票下跌。提醒一下，面對全行業的集裝箱不平衡，我們決定放棄假期計劃，優先考慮核心品種。

Overall, we're quite pleased with our Q2 results and are excited about the opportunities ahead in fiscal 2022. Our performance over the last 11 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，我們對第二季度的業績非常滿意，並對 2022 財年未來的機遇感到興奮。我們過去 11 個季度的表現，無論是絕對基礎還是相對於該類別的表現，都表明我們的 5 項戰略要務如何推動業績，並且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 call to questions.

這樣，接線員，您就可以打電話提問了。

(Operator Instructions) And the first question comes from Steph Wissink with Jefferies.

（操作員說明）第一個問題來自 Jefferies 的 Steph Wissink。

We have two more tactical questions. The first is, Mandy, if you could just help us on the holiday program. Can you help us square that up on what it might have represented last year, so just from a comparability perspective? And then as you took that out of the plan for the back half, were you putting back in something else that allowed you to kind of keep the sales targets as you had planned them? Or was that already in the base when you guided initially?

我們還有兩個戰術問題。第一個是，曼迪，你能否在假期計劃上幫助我們。您能否幫助我們從可比性的角度將其與去年可能代表的情況進行比較？然後，當您將其從下半年的計劃中剔除時，您是否加入了其他內容，以使您能夠按照計劃保持銷售目標？或者當你最初指導時它已經在基地了？

Yes. So I'll take that question, Steph. For the holiday program, just as a reminder, we said last quarter, that was about a $6 million net sales impact for us. And so if you think about how that translates to retail or what you might see in Nielsen, that's roughly a $12 million impact out there. It was embedded in our guidance last time around when we mentioned it. So that's why you're not seeing any kind of material change from that perspective.

是的。所以我來回答這個問題，斯蒂芬。對於假期計劃，提醒一下，我們上季度說過，這對我們的淨銷售額影響約為 600 萬美元。因此，如果您考慮一下這將如何轉化為零售業，或者您可能會在尼爾森看到什麼，那麼這大約會產生 1200 萬美元的影響。當我們上次提到它時，它已嵌入我們的指南中。這就是為什麼從這個角度看不到任何實質性變化。

Okay. Great. Then as a follow-up, we're getting asked just to help quantify shipping and some of the container cost inflation that you're seeing as a percentage of your cost of sales. Can you give us some scope around how much of the cost of sales is tied to shipping and logistics?

好的。偉大的。然後，作為後續行動，我們被要求幫助量化運輸和一些集裝箱成本通脹，您將其視為銷售成本的百分比。您能否給我們一些關於銷售成本與運輸和物流相關的範圍？

Yes. So I'll start with a more macro view of the cost headwinds that are being carried in our gross margin. And so as you know, we're carrying 25% level tariffs, and that's been with us now for a couple of years. We also have the FX impact, and we have previously quantified that as up to 200 basis point impact. And then we have the ocean freight and a mixture of air freight in there, all those costs that we're carrying this year.

是的。因此，我將從更宏觀的角度來看待我們毛利率中所面臨的成本阻力。如您所知，我們徵收 25% 的關稅，這種情況已經持續了幾年了。我們還受到外匯影響，我們之前已將其量化為高達 200 個基點的影響。然後我們有海運和空運的混合，我們今年承擔的所有這些費用。

Overall, if you take into account all of those things, that's roughly about 1,000 basis point impact of cost headwinds that we're carrying in our gross margin line. What I feel great about is that even with that amount of headwind, we're still delivering adjusted EBITDA up 9% to 11% -- expecting to deliver adjusted EBITDA up 9% to 11% for this year. So a lot of headwinds. Really proud of the team, though, of how we have navigated it thus far, pulling the levers that we have at our disposal to help mitigate a portion of those costs, but again, still delivering -- expecting to deliver strong EBITDA growth this year.

總的來說，如果考慮到所有這些因素，我們的毛利率線中成本逆風的影響大約為 1,000 個基點。讓我感到高興的是，即使面臨如此大的阻力，我們的調整後 EBITDA 仍然增長 9% 至 11%——預計今年調整後 EBITDA 增長 9% 至 11%。所以有很多阻力。不過，我們對團隊迄今為止的應對方式感到非常自豪，我們利用我們所掌握的槓桿來幫助減輕部分成本，但我們仍然在交付——預計今年將實現強勁的 EBITDA 增長。

Mandy, last one is, any ASP increases that you expect to implement going forward in relation to those cost impacts?

Mandy，最後一個問題是，針對這些成本影響，您預計未來會實施任何平均售價上漲嗎？

Yes. So as you may recall, in May, we took a price increase, and that was on a smaller set of SKUs here domestically, but a much larger set of SKUs internationally. And so that had about a 100 basis point positive impact in the quarter for us from taking that pricing increase.

是的。您可能還記得，5月份，我們提高了價格，這是針對國內較小的一組SKU，但針對國際上更大的一組SKU。因此，價格上漲對我們本季度產生了大約 100 個基點的積極影響。

As we think about the road ahead, really looking at how permanent do we feel these cost pressures are, to the degree that they are more permanent versus not, we know that we have pricing power, and that's certainly a lever that we have at our disposal.

當我們思考未來的道路時，真正看看我們認為這些成本壓力有多持久，以及它們是否更持久，我們知道我們有定價權，這肯定是我們擁有的槓桿。處理。

On the other hand of that, we just talked about our value campaign in our prepared remarks and also want to make sure that we continue to provide that value for our consumers. So I would say it's a lever at our disposal, but more to come on that.

另一方面，我們剛剛在準備好的發言中談到了我們的價值活動，並希望確保我們繼續為消費者提供這種價值。所以我想說，這是我們可以使用的一個槓桿，但還會有更多的槓桿。

The next question comes from Andrea Teixeira with JPMorgan.

下一個問題來自摩根大通的 Andrea Teixeira。

So I wanted to just go back to the bridge of the growth in sales that you had. Can you break down how much was -- I know usually you don't, but just to give us a perspective of volumes and pricing and maybe mix, given that you have obviously more of the brands are -- that carry higher ASP? As well as if you had any pull forward, are we seeing companies like having -- are retailers demanding for faster shipment ahead of the holidays? So I'm wondering if -- and I know that your holiday program is relatively small, but I was wondering if there is anything related to that or innovation or distribution that we should be aware of.

所以我想回到銷售增長的橋樑。您能否詳細說明一下，我知道您通常不會這樣做，但只是為了讓我們對銷量和定價以及可能的混合情況有一個了解，因為您顯然擁有更多的品牌- 具有更高的平均售價？如果您有任何推動，我們是否看到類似的公司 - 零售商是否要求在假期前加快發貨？所以我想知道是否——我知道你們的假期計劃相對較小，但我想知道是否有任何與此相關的事情或我們應該注意的創新或分銷。

Yes. Andrea, so the sales growth in Q2, really pleased with, 27% sales growth, ahead of our expectations. And that was really driven by core momentum behind our portfolio of brands. I would say the second thing that drove that is that in September, we were able to start to improve upon our fill rates. So as that inventory came into our DC and we were able to get that back out to customers, that did also help us in September. So I would say it's really those 2 factors that drove that growth for us in Q2.

是的。Andrea，對第二季度的銷售增長感到非常滿意，銷售增長了 27%，超出了我們的預期。這實際上是由我們品牌組合背後的核心動力推動的。我想說的第二件事是，在九月份，我們能夠開始提高我們的填充率。因此，當庫存進入我們的配送中心時，我們能夠將其返還給客戶，這對我們在 9 月份也有幫助。所以我想說，這確實是這兩個因素推動了我們第二季度的增長。

And then I think going back to the first question in terms of the pricing, how much you realized so far and it's embedded in there? And I'm assuming from what you discussed in terms of the tough comparisons in the fourth quarter that the balance of what we see in the second half will be mostly in the third. Can you kind of give us the -- an idea if, again, you're going to see this carryover of fulfillment that you just discussed, plus the pricing timing hitting the third quarter and helping the momentum, and then potentially having a steep deceleration but just on the fourth quarter? Is that the way to think?

然後我想回到定價方面的第一個問題，到目前為止您意識到了多少並且它嵌入其中？根據您所討論的第四季度的艱難比較，我假設我們在下半年看到的平衡將主要集中在第三季度。您能否給我們一個想法，您是否會再次看到您剛才討論的這種履行的結轉，加上第三季度的定價時機並有助於推動勢頭，然後可能會出現急劇減速但就在第四季度？是這樣的想法嗎？

Yes, that's right. As we mentioned in our prepared remarks, we do expect Q3 to be a stronger quarter than Q4. And on the pricing front, we said it's about 100 basis points of benefit to us in the second quarter.

恩，那就對了。正如我們在準備好的評論中提到的，我們確實預計第三季度將比第四季度表現強勁。在定價方面，我們表示第二季度會給我們帶來約 100 個基點的好處。

And as we look out, we're being prudent on our expectations on the back half, given the dynamic environment that we're operating in from a supply chain standpoint.

正如我們所看到的，考慮到從供應鏈的角度來看我們所處的動態環境，我們對下半年的預期持謹慎態度。

We talked about holiday. That is going to impact our Q3. And in Q4, to your point, Andrea, we will be cycling that 24% in the base which was driven by stimulus that we're accounting for as well.

我們談論了假期。這將影響我們的第三季度。在第四季度，安德里亞，按照您的觀點，我們將在基數上循環 24%，這也是由我們正在考慮的刺激措施推動的。

And one last one. I'm sorry to just squeeze it in, Mandy, but this is super helpful. In case you have more demand, so obviously, you're prudent because of the moving pieces that we have ahead of us. But if you do have demand, do you have the supply? Do you have the products? I remember you having contracted a lot of containers ahead of time. So I was wondering how much you can flex in terms of supply to keep fulfillment if you continue to be as successful as you have been with sales?

還有最後一張。很抱歉我只是把它塞進去，曼迪，但這非常有幫助。如果您有更多需求，那麼顯然，您會謹慎行事，因為我們面前有一些變化。但如果你確實有需求，你有供應嗎？你們有產品嗎？我記得你提前承包了很多集裝箱。因此，我想知道，如果您繼續像銷售方面一樣成功，您可以在供應方面進行多少調整以保持履行？

Andrea, this is Tarang. I'll take that one. We feel great about the work that our operations team has done in terms of securing containers. About 4, 5 months ago, when we made the decision on holiday, we were having a tough time securing containers. We were worried about our ability to. We're able to get all the containers we want right now. As Mandy said, they are coming at an elevated cost, and that's been embedded in our guidance. But overall, we feel good about our ability to meet consumer demand.

安德里亞，這是塔朗。我會接受那個。我們對我們的運營團隊在保護集裝箱方面所做的工作感到非常滿意。大約四、五個月前，當我們決定放假時，我們在確保集裝箱安全方面遇到了困難。我們擔心我們的能力。我們現在就能獲得我們想要的所有容器。正如曼迪所說，它們的成本較高，這已納入我們的指導中。但總的來說，我們對我們滿足消費者需求的能力感到滿意。

The next question comes from Dara Mohsenian with Morgan Stanley.

下一個問題來自摩根士丹利的 Dara Mohsenian。

So just looking to follow up on sort of revenue guidance for the back half. I mean you guys are assuming flattish type of trends year-over-year. Obviously, there's the holiday program, right? There's some risk around shipping in general and product availability, but it does sound like fill rates got better intra-quarter. You've got higher inventory levels here.

因此，我們只是想跟進下半年的收入指引。我的意思是，你們假設趨勢逐年持平。顯然，有假期計劃，對吧？總體而言，運輸和產品可用性存在一些風險，但聽起來填充率確實在季度內有所改善。你這裡的庫存水平更高。

So just wanted to get a sense if there's anything else besides the holiday program and the potential supply environment that's really limiting you as you look at the back half of the year. Obviously, the tougher comp to Q4, but given you overdelivered substantially in each of the last couple of quarters but you haven't actually raised back half guidance. I'm just wondering if there are other issues that have come up or it's just those discrete factors that we talked about.

因此，我只是想了解一下，當您回顧今年下半年時，除了假期計劃和潛在的供應環境之外，是否還有其他因素真正限制了您。顯然，第四季度的競爭更加艱難，但考慮到您在過去幾個季度的每個季度都大幅超額交付，但您實際上並沒有提高一半的指導。我只是想知道是否還出現了其他問題，或者只是我們討論過的那些離散因素。

And then secondly, on the pricing comments, it sounds like you're sort of waiting to see if these costs stay higher or not. Any thoughts on if these costs are more temporary or if they sustain as you look out? Is it more through the holiday season? Whether potentially these cost pressures and things should get better after that, any thoughts around that would be helpful also.

其次，關於定價評論，聽起來您似乎在等待這些成本是否會保持在較高水平。您是否想過這些成本是暫時的，還是在您看來會持續存在？假期過得比較多嗎？無論這些成本壓力和事情之後是否會變得更好，任何圍繞這一點的想法也會有所幫助。

Perfect. So I'll take the first question just on our revenue growth. As I look overall on the year, so our fiscal '22 guidance for this year is up 14% to 16% on a net sales standpoint. When I look at that on a 2-year stack basis, it's a plus 29%. So well above kind of competitors in the industry and something that we feel great about. How that shakes out across the quarters, as you've noted, Dara, we do have the absence of the holiday program this year in Q3, and we will be cycling harder compares as we get into Q4. Outside of that, feel great about where our business is and the momentum that we have behind our brands.

完美的。所以我將回答關於我們收入增長的第一個問題。從我對今年的總體情況來看，我們今年 22 財年的指導從淨銷售額的角度來看增長了 14% 至 16%。當我以 2 年堆棧為基礎來看時，它增加了 29%。遠遠高於行業內的競爭對手，這讓我們感覺很棒。正如您所指出的，達拉，我們今年第三季度確實沒有假期計劃，而進入第四季度時，我們將更加努力地進行比較。除此之外，對我們的業務狀況以及我們品牌背後的動力感到滿意。

And on your second question, Dara, on the pricing comment, I would say we're -- we've embedded into our guidance elevated costs through the balance of this fiscal year. We'll be taking a look over the next several months to say do we forecast that to be -- to continue past this fiscal year, and that will be part of our evaluation on whether we take additional pricing. Usually the best time for us to price is during our spring resets, so we're actually evaluating that as we speak. But overall, we feel container imbalances over time balance out. When I take a look at container costs long term, they tend to come down. And if we see something different, we'll certainly factor that into our pricing discussions. But overall, I'd say we've already embedded the cost in through the balance of this year.

關於你的第二個問題，達拉，關於定價評論，我想說的是，我們已經在本財年的餘額中將提高的成本納入了我們的指導中。我們將在接下來的幾個月裡進行觀察，看看我們是否預測這種情況會持續到本財年之後，這將是我們評估是否採取額外定價的一部分。通常我們定價的最佳時間是在春季重置期間，因此我們實際上正在評估這一點。但總體而言，我們認為容器的不平衡隨著時間的推移會得到平衡。當我長期觀察​​集裝箱成本時，它們往往會下降。如果我們看到不同的東西，我們肯定會將其納入我們的定價討論中。但總的來說，我想說我們已經將成本計入今年的餘額中。

The next question comes from Erinn Murphy with Piper Sandler.

下一個問題來自艾琳·墨菲和派珀·桑德勒。

Great. Just a couple of questions for me. First, Mandy, for you. On the 27% growth in the quarter, could you talk a little bit more about how that broke down sell-through versus sell-in? And are you already starting to see some of the benefits of the CVS incremental shelf space?

偉大的。只是問我幾個問題。首先，曼迪，為你。關於本季度 27% 的增長，您能否多談談如何區分售出率和售入率？您是否已經開始看到 CVS 增量貨架空間的一些好處？

And then secondly, just bigger picture, if we could look at both the cosmetics as well as the skin care categories, you mentioned a little bit more volatility in cosmetics. Do you see that reversing the time soon as we see kind of accelerated going out again trends? And then maybe share a little bit more about what you're seeing in skin care.

其次，從更大的角度來看，如果我們可以同時考慮化妝品和護膚品類別，您提到化妝品的波動性更大一些。當我們看到加速再次外出的趨勢時，您是否認為時間會很快逆轉？然後也許可以分享更多有關您在皮膚護理方面看到的內容。

All right. Erinn, so on the 27% growth in the quarter, I would say that was ahead of what you all would have seen from a Nielsen track channel standpoint, and that just really speaks to some of the strength that we're seeing out of international as well as in some of our untracked customers. So we feel great about [example] what we were seeing from a sell-through in Q2 as well as what we were able to sell in. Like I mentioned, our ability to kind of impact fill rates in September helped us as well. So overall, feel great about how the quarter came in.

好的。Erinn，所以就本季度 27% 的增長而言，我想說，這超出了從尼爾森軌道渠道的角度來看你們所有人所看到的，這確實說明了我們從國際市場中看到的一些實力以及我們一些未追踪的客戶。因此，我們對[示例]我們從第二季度的銷售情況以及我們能夠銷售的產品中看到的情況感到非常滿意。就像我提到的，我們在 9 月份影響填充率的能力也對我們有所幫助。總的來說，對本季度的表現感覺很好。

And we're also seeing some benefit from the CVS distribution, but that's much smaller on our overall base. And so we'd expect that to build over time.

我們還看到 CVS 發行版帶來了一些好處，但在我們的整體基礎上，這個好處要小得多。因此，我們預計這種情況會隨著時間的推移而建立。

In terms of the category perspective, I would say on cosmetics, in Q2, we've seen a couple of months where cosmetics was -- the overall cosmetics category was above 2019 levels. And then through the balance of the quarter, we believe there's some COVID-related volatility there, whether it be the Delta variant or something else that really got in the way of the momentum we were seeing in the category. Overall, we're still quite bullish on the cosmetics category. It's an important category for self-expression. The level of innovation we're putting out as well as what we're seeing from competitors gives us hope that the category trends will improve. We'll have to see at what pace they do improve. But overall, I think overall are very bullish on the category.

就品類角度而言，我想說的是化妝品，在第二季度，我們看到化妝品有幾個月的情況——整體化妝品品類高於 2019 年的水平。然後，在本季度的剩餘時間裡，我們認為存在一些與新冠病毒相關的波動，無論是達美航空的變體還是其他真正阻礙了我們在該類別中看到的勢頭的因素。總體而言，我們仍然相當看好化妝品類別。這是自我表達的一個重要類別。我們所推出的創新水平以及我們從競爭對手那裡看到的東西讓我們希望品類趨勢將會改善。我們必須看看他們的進步速度如何。但總的來說，我認為總體上非常看好該類別。

And skin care, just as bullish, if not even more so. We've seen skin care hold up quite well throughout the pandemic. We continue to see good growth rates, and the category's up 7% in tracked channels in Q2. Our business is up 22% for e.l.f. tracked channels. And we have great momentum across our entire brand portfolio, not only in terms of the efforts we're doing on e.l.f. skin to better educate consumers, our innovations such as the Holy Hydration SPF 30 product are doing quite well, but also on Keys Soulcare, which went out 100% skin care as well as W3LL PEOPLE.

皮膚護理也同樣看漲，甚至更看好。我們看到皮膚護理在整個大流行期間表現得很好。我們繼續看到良好的增長率，第二季度該類別在跟踪渠道中增長了 7%。e.l.f. 我們的業務增長了 22%跟踪頻道。我們的整個品牌組合都擁有強勁的勢頭，不僅僅是在 e.l.f. 方面所做的努力。為了更好地教育消費者，我們的創新產品（例如Holy Hydration SPF 30產品）表現相當不錯，而且Keys Soulcare也表現出色，它推出了100%護膚品以及W3LL PEOPLE。

W3LL PEOPLE, as a pioneer in clean beauty, was limited previously just to color cosmetics. We've now entered the biggest segment of clean beauty in skin care. So I feel great about our plans across the portfolio to continue to take -- capitalize on the momentum we're seeing in skin care as well.

W3LL PEOPLE作為清潔美容領域的先驅，之前僅限於彩妝。我們現在已經進入了皮膚護理中最大的清潔美容領域。因此，我對我們在整個產品組合中繼續採取的計劃感到非常高興 - 利用我們在皮膚護理領域看到的勢頭。

The next question comes from Olivia Tong with Raymond James.

下一個問題來自 Olivia Tong 和 Raymond James。

So I apologize, I got on the call late, but I just wanted to understand the guide a little bit better because it seems like the makeup category continues to come back and want to see if you're seeing any signs of slowdown, especially with the Delta variant. We've obviously seen Prestige start to gain some momentum. So is that impacting your demand in any way? And if so, what are you doing to combat that? And if not, I guess I'd like to better understand why you assume that the growth momentum slows so materially in the second half of the fiscal year, if you're seeing anything on the horizon that does give you pause, or it has become more challenging to get product from point A to point B?

所以我很抱歉，我遲到了，但我只是想更好地理解該指南，因為化妝品類別似乎繼續回來，想看看你是否看到任何放緩的跡象，尤其是德爾塔變體。我們顯然已經看到 Prestige 開始獲得一些動力。那麼這會以某種方式影響您的需求嗎？如果是這樣，你正在採取什麼措施來解決這個問題？如果沒有，我想我想更好地理解為什麼你認為增長勢頭在本財年下半年大幅放緩，如果你看到即將發生的任何事情確實讓你猶豫，或者它已經將產品從A 點運送到B 點變得更具挑戰性？

Yes. Olivia, so I'll take the first part of that question. I'll pass it over to Tarang to give more color on the category side. But from a pure guidance standpoint, we feel great about the core business momentum that we have. As I mentioned earlier, just really on Q3, there's going to be the absence of our holiday program that we typically have. That will be an impact to us in Q3. We've talked about $6 million in a net sales impact to us, translating to about $12 million of what you might see from a track channel standpoint. And then as we go into Q4, starting to cycle stimulus, so in Q4 last year, we had a 24% net sales growth quarter, and that was driven by stimulus. And as we cycle that, we are expecting to see that pull back a little bit. So otherwise, on color and the category outlook, I'll pass it to Tarang.

是的。奧利維亞，我將回答這個問題的第一部分。我會將其傳遞給 Tarang，以便在類別方面提供更多色彩。但從純粹的指導角度來看，我們對我們擁有的核心業務動力感到非常滿意。正如我之前提到的，實際上在第三季度，我們通常會有的假期計劃將會消失。這將對我們第三季度產生影響。我們已經討論了對我們的淨銷售額影響為 600 萬美元，從賽道渠道的角度來看，這相當於您可能看到的約 1200 萬美元。然後，當我們進入第四季度時，開始循環刺激，去年第四季度，我們的淨銷售額增長了 24%，這是由刺激推動的。當我們循環這個過程時，我們預計會看到這一點有所回落。因此，除此之外，關於顏色和類別前景，我會將其傳遞給 Tarang。

Yes. And I'd say on the color category, similar approach we've taken. We're just being prudent in terms of not counting on a massive rebound right away. So certainly, if the category really started taking off based on the innovation and consumer interest, then that would be a potential upside for us. But we feel our strategies work pretty well of not getting ahead of ourselves and let the consumer momentum carry this forward, and we'll see if we get some help from the category as well.

是的。我想說的是，在顏色類別上，我們採取了類似的方法。我們只是謹慎行事，不指望立即大幅反彈。當然，如果該類別真的基於創新和消費者興趣而開始起飛，那麼這對我們來說將是一個潛在的優勢。但我們認為我們的策略非常有效，不會超前，讓消費者的動力推動這一趨勢，我們將看看我們是否也能從該類別中得到一些幫助。

Got it. And then, just on W3LL PEOPLE and Keys Soulcare, just talk about -- if you could talk a little bit about the long-term opportunity there because it sounds like you're getting a little bit more distribution. What do you think they can become as a percentage of sales and sort of the legs that those 2 brands could have going forward?

知道了。然後，就 W3LL PEOPLE 和 Keys Soulcare 而言，您是否可以談談那裡的長期機會，因為聽起來您正在獲得更多的發行量。您認為這兩個品牌在銷售額中所佔的百分比以及未來的發展前景如何？

Sure. So I'll take that, Olivia. We feel there's great potential on both brands. We're still very much in the early innings of growth on both of them. And as a reminder, even though W3LL PEOPLE had been around for over a decade as a pioneer in clean beauty, part of our thesis in acquiring that brand is we could expand the distribution, improve the innovation output and really drive greater consumer relevance to the brand, and we're very much on that path.

當然。所以我會接受的，奧利維亞。我們認為這兩個品牌都有巨大的潛力。我們仍處於兩者增長的早期階段。提醒一下，儘管W3LL PEOPLE 作為清潔美容領域的先驅已經存在了十多年，但我們收購該品牌的部分論點是，我們可以擴大分銷，提高創新產出，並真正推動消費者與該品牌的更大相關性。品牌，我們正走在這條路上。

I think we did a brand recharge last year that we felt really good about in terms of getting more awareness on W3LL PEOPLE. I feel especially great about the innovation pipeline we have, particularly our entry into skin care, and we are expanding distribution. So the primary distribution of W3LL PEOPLE previously was Target. Our ability to get into a subset of Ulta doors, I think, is an important step there. But again, very early days still in terms of what we feel that brand is really capable of as a pioneer in clean beauty.

我認為去年我們進行了一次品牌更新，我們對於提高 W3LL PEOPLE 的知名度感到非常高興。我對我們擁有的創新渠道感到特別滿意，特別是我們進入皮膚護理領域，並且我們正在擴大分銷。因此，W3LL PEOPLE 以前的主要發行版是 Target。我認為，我們進入 Ulta 門子集的能力是實現這一目標的重要一步。但同樣，我們認為該品牌真正有能力成為清潔美容領域的先驅，目前還處於早期階段。

Keys Soulcare, I'd say I'm even more bullish on for the long term. And part of that has to do with the level of engagement we're seeing from Alicia Keys herself, the level of engagement with the community, and again, very much early days. We're only 9 months into the launch of Keys Soulcare and feel great about our partnerships with Ulta Beauty, with Douglas, the other areas that we're at. But still, I think the other thing that gives me a great deal of confidence on Keys Soulcare is the consumer study that we fielded, which show incredibly high ratings on the quality of the products, the ingredients, the packaging and scents. And really, our biggest opportunity in Keys Soulcare is to continue to drive the awareness and trial of the brand. And we feel good about kind of the retention once we're able to do that.

Keys Soulcare，我想說從長遠來看我更加看好。其中一部分與我們從艾麗西亞·凱斯（Alicia Keys）本人那裡看到的參與度、與社區的參與度以及非常早期的參與度有關。Keys Soulcare 推出僅 9 個月，我們對與 Ulta Beauty、Douglas 以及我們在其他領域的合作夥伴關係感到非常滿意。但我仍然認為，讓我對 Keys Soulcare 充滿信心的另一件事是我們進行的消費者研究，該研究顯示了對產品質量、成分、包裝和香味的極高評價。事實上，我們在 Keys Soulcare 中最大的機會是繼續提高品牌的知名度和嘗試。一旦我們能夠做到這一點，我們就會對保留率感到滿意。

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

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

So you've talked a lot about the pricing already, but I was just curious if, in terms of the pricing you've already taken, was the volume response in terms of volume declines, was it pretty much as expected? Or are there any kind of differences relative to the pricing versus maybe previously when you had done pricing? Can you give us a little bit more color on that?

所以你已經談論了很多關於定價的問題，但我只是好奇，就你已經採取的定價而言，銷量下降是否與預期相符？或者與您之前進行定價時相比，定價是否存在任何差異？你能為我們提供更多的信息嗎？

Sure, Linda. I'll take that. So just as background on our pricing, our biggest pricing action to date in the U.S. was in 2019. We took almost 1/3 of our SKUs up pretty significantly, and we saw great response on that pricing action. We didn't see nearly the level of unit declines that we had modeled. We actually built gross margin in the process. This year, we took a more limited set of SKUs in the U.S. So I'd say it's a pretty modest impact from a pricing standpoint. Again, we like what we've seen in terms of our unit movement.

當然，琳達。我會接受的。因此，正如我們定價的背景一樣，我們迄今為止在美國最大的定價行動是在 2019 年。我們大幅提升了近 1/3 的 SKU，並且我們看到了對該定價行動的巨大反響。我們幾乎沒有看到我們建模的單位下降水平。我們實際上是在這個過程中建立了毛利率的。今年，我們在美國推出了一組更為有限的 SKU。因此，從定價的角度來看，我認為這產生的影響相當有限。再次，我們喜歡我們在單位移動方面所看到的情況。

International is where we took a much bigger level of price increase. It almost matched the type of price increase we took in the U.S. in 2019. And again, we saw better-than-expected unit movement than what we had modeled. And it was one of the reasons why the pricing action helped deliver 100 basis points of benefit to the gross margin in Q2.

在國際市場，我們的價格上漲幅度要大得多。這幾乎與 2019 年美國的價格上漲類型一致。我們再次看到單位移動情況比我們建模的要好。這也是定價行動幫助第二季度毛利率提高 100 個基點的原因之一。

So to the earlier point, I feel we do have pricing power. We're always going to balance that with having extraordinary value. And over the next couple of months, we'll evaluate if we need to take additional pricing or not.

因此，就之前的觀點而言，我認為我們確實擁有定價權。我們始終會在這一點與非凡價值之間取得平衡。在接下來的幾個月裡，我們將評估是否需要額外定價。

Great. And then, just in terms of your category exposures, I know that fragrance is not really part of Eyes. Lips. Face., but fragrance has been a really big growth area kind of during the pandemic and with the self-care trend. Is that something that you would consider adding to one of your product lines in terms of fragrance?

偉大的。然後，就您的類別曝光而言，我知道香水並不是眼睛真正的一部分。嘴唇。但香水在大流行期間和自我護理趨勢中一直是一個非常大的增長領域。您是否會考慮將其添加到您的香水產品線中？

Well, I won't talk specific plans, but what I will tell you is our vision for Keys Soulcare is very much a lifestyle beauty brand that, in many respects, transcends the traditional categories of beauty. And so our start was in skin care in the last quarter. You saw us launch into body care as well.

好吧，我不會談論具體的計劃，但我要告訴你的是，我們對 Keys Soulcare 的願景是一個生活方式美容品牌，在很多方面超越了傳統的美容類別。因此，我們從上個季度的皮膚護理開始。您也看到我們也進入了身體護理領域。

And I'll tell you, one of the things that consumers are really responding to on Keys Soulcare is just the phenomenal scents we have on that brand. And so it definitely has opportunity longer term, I feel, to enter the scent category. The form at which we'll take, we're not revealing at this point, but definitely could see something there. And then longer term, I'd say, probably further out relative to some of the category adjacencies we're looking at. But certainly for Keys Soulcare, I can see it part of our overall vision.

我會告訴你，消費者對 Keys Soulcare 真正感興趣的事情之一就是我們在該品牌上擁有的非凡香味。因此，我認為，從長遠來看，它絕對有機會進入香水類別。我們目前不會透露我們將採取的形式，但肯定可以看到一些東西。然後，從長遠來看，我想說，相對於我們正在考慮的一些類別鄰接，可能會更進一步。但對於 Keys Soulcare 來說，我當然可以將其視為我們整體願景的一部分。

Next question comes from Oliver Chen with Cowen.

下一個問題來自 Oliver Chen 和 Cowen。

This is Jonna on for Oliver. Just curious about your marketing strategy around the holiday in the fourth quarter. Obviously, you increased marketing as a percentage of sales this year versus last year. Just maybe talk about areas you are allocating your spend and sort of how you're checking your ROI. And also just curious if you are seeing any increase in marketing spend this year.

這是奧利弗的喬娜。只是好奇你們第四季度假期前後的營銷策略。顯然，與去年相比，今年您增加了營銷佔銷售額的百分比。也許只是談談您分配支出的領域以及您如何檢查投資回報率。我也很好奇今年的營銷支出是否有所增加。

Sure, Jonna. So on our marketing strategy, I mean I think that's one of the things that's really working for us. On the last call, we talked about the way we measure the ROI of our marketing is through Nielsen's marketing mix, the multivariate regression that can really isolate, by vehicle, the gross sales per dollar invested that we're seeing, and we see very strong returns through that analysis.

當然，喬娜。因此，就我們的營銷策略而言，我認為這是真正對我們有用的事情之一。在最後一次電話會議上，我們談到了衡量營銷投資回報率的方法是通過尼爾森的營銷組合，多元回歸可以真正按車輛隔離我們所看到的每美元投資的總銷售額，我們看到非常通過該分析獲得了強勁的回報。

In addition, we have platform-specific metrics we take a look at, whether it be the total number of user-created videos on TikTok, the number of the billions of views, or on Twitch and our channel there, the number of followers that we have and how we take a look at what we're doing there. So I feel good about the overall progress that we have in marketing. It was one of the reasons that emboldened us to take up our marketing levels in our prior guidance. And so we feel that we're on the right trajectory. As we talked in the quarter, our marketing as a percent of sales in Q2 were 16% versus 15% the year before, well within kind of our range that we provided within our guidance.

此外，我們還會查看特定於平台的指標，無論是 TikTok 上用戶創建的視頻總數、數十億次觀看次數，還是 Twitch 和我們的頻道上的關注者數量。我們已經以及我們如何看待我們在那裡所做的事情。因此，我對我們在營銷方面取得的整體進展感到滿意。這是我們在之前的指導中大膽提高營銷水平的原因之一。所以我們覺得我們正走在正確的軌道上。正如我們在本季度談到的那樣，我們第二季度的營銷佔銷售額的百分比為 16%，而去年同期為 15%，完全在我們在指導範圍內提供的範圍內。

And then in terms of specific strategy for the holiday, I'd say you see a continuation of how do we do unexpected things that really drive greater consumer engagement, even things like we talked in our prepared remarks, jumping on that cultural moment with Jeopardy when Matt Amodio got the answer wrong, creating friends with him and at the level of buzz we got and continue to do that. So I'd say less holiday specific, even though if you go on elfcosmetics.com, keyssoulcare.com right now, you can see some of our holiday efforts there and more about our overall success that we've had of really driving strong consumer engagement.

然後就假期的具體策略而言，我想說，您會看到我們如何做意想不到的事情的延續，這些事情真正推動消費者參與度更高，甚至像我們在準備好的演講中談到的那樣，在《危險邊緣》中抓住了那個文化時刻當馬特·阿莫迪奧（Matt Amodio）得到錯誤的答案時，我們就與他建立了朋友，並在我們得到的嗡嗡聲中繼續這樣做。因此，我想說的不是具體的假期，即使您現在訪問elfcosmetics.com、keysoulcare.com，您也可以看到我們在那裡所做的一些假期工作，以及更多有關我們在真正推動強勁消費者方面所取得的整體成功的信息。訂婚。

The next question comes from Wendy Nicholson with Citigroup.

下一個問題來自花旗集團的溫迪·尼科爾森。

Can you go back, did you say how much your e-commerce business or your online business direct-to-consumer business grew in the quarter?

您能回過頭來，您有沒有說您的電子商務業務或在線業務直接面向消費者的業務在本季度增長了多少？

We did. We didn't give the specific number, but we did say it's up triple digits on a 2-year stack basis.

我們做到了。我們沒有給出具體數字，但我們確實說過，在兩年的基礎上，它增長了三位數。

Okay. And my question has to do with, if I go on elfcosmetics.com, it does look like there's a fair amount of holiday promotion on the website, and that's great. But I'm wondering if any of your retailers kind of look at that and say, "Gosh, you're not doing a holiday promotion with us, but you're doing it direct-to-consumer." Is there any conflict there? Obviously, your market shares are great in brick-and-mortar, so I can't believe they're that upset. But I'm just wondering the choice to do holiday promotions direct-to-consumer, but not in-store, if you will.

好的。我的問題是，如果我訪問 elfcosmetics.com，網站上看起來確實有相當多的節日促銷活動，這很棒。但我想知道你們的零售商是否會看到這一點並說：“天哪，你們不是在與我們一起進行假日促銷，而是直接面向消費者。”這裡面有衝突嗎？顯然，你們的實體市場份額很大，所以我不敢相信他們會如此沮喪。但我只是想知道是否可以選擇直接面向消費者進行節日促銷，而不是在店內進行促銷，如果你願意的話。

So Wendy, there is a limited amount of holiday that we have online and with select retailers. So if you went into a Target store right now, you'll see as part of their corporate program. e.l.f. represented in their holiday program. So there is some holiday. What we refer to as our main holiday end caps that we used to do, we foregoed them when we made our decision on supply constraints. But we did want to continue, maybe to the prior question, we still want to engage consumers during this time. And so my advice would be, if you see a e.l.f. holiday kit, hurry up and buy it soon because it will sell out before the end of the season here.

溫迪，我們在網上和精選零售商處提供的假期數量有限。因此，如果您現在走進 Target 商店，您會看到這是他們公司計劃的一部分。e.l.f.代表他們的假期計劃。所以有一些假期。我們過去所說的主要假期結束上限，當我們就供應限製做出決定時，我們放棄了它們。但我們確實想繼續，也許對於之前的問題，我們仍然希望在這段時間吸引消費者。所以我的建議是，如果你看到一個精靈。節日套裝，趕快購買吧，因為這裡的季節結束前就會賣完。

And then from a retailer standpoint, we have great relationships. I think one of the things that retailers really appreciated were we were one of the first ones that foresaw the container imbalance and proactively made those decisions in a time that allowed them to react versus what they're facing right now with a number of other players maybe falling short in terms of expectations. And so we have had no conflict there. Our retailers understand that elfcosmetics.com and our digital efforts are what fuel the overall business model. And so driving strong consumer engagement from there and then some limited presence in some of their stores has proven to be a winning formula.

從零售商的角度來看，我們有著良好的關係。我認為零售商真正欣賞的一件事是，我們是第一批預見到集裝箱不平衡的公司之一，並及時主動做出這些決定，使他們能夠針對目前與許多其他參與者所面臨的情況做出反應也許達不到預期。所以我們在那裡沒有發生衝突。我們的零售商明白 elfcosmetics.com 和我們的數字化努力是推動整體商業模式的動力。因此，從那裡推動消費者的強烈參與，然後在他們的一些商店中進行有限的存在，已被證明是一個成功的秘訣。

Fair enough. Okay. Sounds great. And then on the international strategy, it's interesting to me that you called that out as sort of this massive amount of white space. And it's interesting that Keys Soulcare looks like it's really playing a big part in that between Douglas and I think it's Harrods. And so I'm wondering kind of do you still think that the e.l.f. brand has huge white space internationally? Or is it really more just Keys Soulcare? And what's the -- how do you think about trying maybe pacing that growth? I agree, a huge amount of white space, just not sure when you get to an inflection point where it becomes a really meaningful part of the business for you.

很公平。好的。聽起來很棒。然後在國際戰略方面，我覺得有趣的是，你將其稱為大量的空白。有趣的是，Keys Soulcare 看起來確實在 Douglas 和 Harrods 之間的關係中發揮了重要作用。所以我想知道你是否仍然認為 e.l.f.品牌在國際上有巨大的空白？或者它真的只是Keys Soulcare？您如何看待嘗試加快這種增長的步伐？我同意，大量的空白，只是不確定什麼時候你會到達一個拐點，它會成為對你來說真正有意義的業務部分。

Yes. So we absolutely see international as meaningful white space for the e.l.f. brand, not only Keys Soulcare and eventually W3LL PEOPLE but e.l.f. specifically. And our strategy has really been to take a deliberate approach and make sure that we nurture the right market in the right way. So the U.K. being our primary example, we're starting online, then into Superdrug, into Boots. Now both customers are expanding the brand even further. It's a good success model for us to take to other countries. And we feel the same model can work. I mean we've seen the same thing that we did when we went into Canada originally with Target before they shut down their operations there, then to Walmart, and now with Superdrug. In Canada, we've seen great momentum. So I think we'd follow a similar approach in other countries, which is establish with the leading retailer in online and then roll out from there.

是的。所以我們絕對認為國際對於 e.l.f 來說是有意義的空白。品牌，不僅包括 Keys Soulcare 和最終的 W3LL PEOPLE，還有 e.l.f.具體來說。我們的策略實際上是採取深思熟慮的方法，確保我們以正確的方式培育正確的市場。因此，英國是我們的主要例子，我們從在線開始，然後進入 Superdrug，進入 Boots。現在，這兩家客戶都在進一步擴大品牌規模。這是我們向其他國家推廣的良好成功模式。我們認為相同的模型可以發揮作用。我的意思是，我們看到了與我們最初與 Target 一起進入加拿大時所做的同樣的事情，然後他們關閉了在那裡的業務，然後是沃爾瑪，現在是 Superdrug。在加拿大，我們看到了巨大的勢頭。因此，我認為我們會在其他國家採取類似的方法，即與領先的在線零售商建立聯繫，然後從那裡推廣。

The next question comes from Mark Astrachan with Stifel.

下一個問題來自 Stifel 的 Mark Astrachan。

I guess just going back to one of the other questions and some previous commentary about stimulus effect on the category. Just I'm curious, any sort of thoughts on how beneficial it was? I'm thinking more broader beauty, but just whatever, in whatever categories, could be makeup, could be whatever that's had a broader, bigger impact on U.S. beauty category trends. So how do you think about, A, what it was, if you have any thoughts on that? B, how then do you think about its impact on your business? You obviously gave guidance around 4Q, but even sort of bigger picture, okay, your fiscal year ends end of March, not asking for guidance, but just directionally, any sort of impact or how do we think about that on the business in the next kind of next 12 months?

我想只是回到其他問題之一以及之前關於刺激對該類別的影響的一些評論。只是我很好奇，對它有多大好處有什麼想法嗎？我正在考慮更廣泛的美容，但無論在什麼類別，都可以是化妝品，可以是對美國美容類別趨勢產生更廣泛、更大影響的任何東西。那麼，如果您對此有任何想法，您如何看待，A，它是什麼？B、那麼您如何看待它對您業務的影響？顯然，您在第四季度左右給出了指導，但即使是更大的前景，好吧，您的財政年度於三月底結束，不要求指導，而只是定向，任何形式的影響或我們如何看待接下來的業務未來 12 個月會怎樣？

Sure. So Mark, we track what we feel the impact of stimulus was. And if you take a look at our last couple of quarters, we talked about Q4 of last fiscal year being up 24%. Q1 of this year was up 50%. Those numbers were definitely aided by stimulus. We could see kind of when those levels came in, how it impacted our business.

當然。馬克，我們跟踪我們對刺激措施的影響。如果你看一下我們過去幾個季度，我們談到上一財年第四季度增長了 24%。今年第一季度增長了50%。這些數字肯定是受到刺激措施的幫助。我們可以看到這些水平何時出現，它如何影響我們的業務。

I'd say for the category overall, we definitely think stimulus helped but it was offset by some of the restrictions related to the pandemic. And so it might not be as clear to see from the overall category standpoint, but we definitely know for us, it was one of the major drivers of those 2 quarters in terms of what we're able to see. And then as we go forward, I think we're just being careful of you had, particularly that third wave of stimulus was by far the biggest increase in disposable income for a lot of consumers, and so just being cautious to say those dollars are not going to be there. So let's not get ahead of ourselves even though we feel really great about the business and the momentum that we're seeing.

我想說，就整個類別而言，我們肯定認為刺激措施有所幫助，但它被與大流行相關的一些限制所抵消。因此，從整體類別的角度來看，可能不太清楚，但我們絕對知道，就我們所能看到的而言，這是這兩個季度的主要驅動因素之一。然後，當我們前進時，我認為我們只是要小心，特別是第三波刺激措施是迄今為止許多消費者可支配收入的最大增幅，因此請謹慎地說這些美元是不會在那裡。因此，即使我們對業務和我們所看到的勢頭感到非常滿意，我們也不要超前。

Got it. Okay. That's helpful. And then just lastly, thinking about the skin care business, broadly, how much distribution does that product have on shelf? How much of that is separate from the core e.l.f. business? And maybe thinking about it in a different way as well, is the market share bigger as a percentage of your online business for the brand versus the brick-and-mortar? I assume it is, but maybe that helps us kind of get a sense of where it could go at least near to medium term.

知道了。好的。這很有幫助。最後，從廣義上考慮皮膚護理業務，該產品在貨架上的分銷量有多少？其中有多少與核心 e.l.f. 是分開的。商業？也許也可以換個角度思考，與實體店相比，品牌在線業務的市場份額是否更大？我認為是的，但這也許可以幫助我們了解至少在中期內它會走向何方。

Sure. So I would say on skin care, the market share is definitely bigger online. So if I take a look at elfcosmetics.com and Amazon, skin care represents almost 25% of our business on both those sites. In national retailers, our overall business, it's around 10% or a little bit less than 10%. So we have a long way to go. And a lot of it is related to as we continue to pick up more shelf space, our ability to put more of our skin care assortment in to do more with skin care, and again, across all 3 brands. So one of the things that gives me confidence in our skin care strategy is just the level of uptake we've seen online behind skin care and being able to get more distribution in.

當然。所以我想說，在護膚品方面，網上的市場份額肯定更大。因此，如果我查看 elfcosmetics.com 和 Amazon，就會發現護膚品幾乎佔這兩個網站上我們業務的 25%。在全國零售商中，我們的整體業務約為 10% 或略低於 10%。所以我們還有很長的路要走。這在很大程度上與我們不斷獲得更多的貨架空間、我們有能力投入更多的護膚品品種以進行更多的護膚品有關，同樣，涉及所有三個品牌。因此，讓我對我們的皮膚護理策略充滿信心的因素之一就是我們在網上看到的皮膚護理背後的吸收水平，並且能夠獲得更多的分銷。

And just to follow up on that, do you think that then that evolves, so maybe it doesn't quite get to 25% of brick-and-mortar distribution, but does that get bigger than where we are today? And is that one of the arguments that you can make to the retailers about adding shelf space?

跟進一下，您認為這種情況會發展嗎？也許它還沒有達到實體分銷的 25％，但是這個比例會比我們今天的水平更大嗎？這是您可以向零售商提出的關於增加貨架空間的論據之一嗎？

It's very much part of our conversation with retailers. They see the momentum that we have in skin care even in the last quarter, up 22% versus a category that was up 7%. And then, along with the innovation that we have coming on skin care, it's definitely part of our discussions in terms of getting more shelf space, not only for e.l.f. cosmetics but also for e.l.f. skin. And then in terms of the nature of that shelf space, it varies by retailer. At Target, where we have our largest sets, we're able to integrate skin care into our overall set, and we like that approach quite a bit. It allows the cross-shopping across categories for an e.l.f. consumer. At Ulta Beauty, we have a few shelves within their skin care set. And I think at some point, when we are able to take sufficient space at Ulta Beauty, we'll probably make the play to kind of integrate that as well. But right now, it's in both spots.

這是我們與零售商對話的重要組成部分。他們看到了我們在上個季度的皮膚護理領域的勢頭，增長了 22%，而其他類別則增長了 7%。然後，隨著我們在護膚品方面的創新，這絕對是我們討論獲得更多貨架空間的一部分，而不僅僅是為 e.l.f.化妝品，也適用於 e.l.f.皮膚。然後就貨架空間的性質而言，它因零售商而異。在塔吉特，我們擁有最大的套裝，我們能夠將皮膚護理融入到我們的整體套裝中，我們非常喜歡這種方法。它允許跨類別交叉購物 e.l.f.消費者。在 Ulta Beauty，我們的護膚套裝中有幾個貨架。我認為在某個時候，當我們能夠在 Ulta Beauty 佔據足夠的空間時，我們可能也會將這一點整合起來。但現在，它在兩個地方都有。

Next question comes from Rupesh Parikh with Oppenheimer.

下一個問題來自魯佩什·帕里克和奧本海默。

Most of my questions are answered, but I just wanted to go back, Mandy, to your comments on gross margins. So you did indicate that you expect them to be down versus the prior year. So I was just curious if you can just talk to us on the puts and takes for the balance of the year on the gross margin front.

我的大部分問題都得到了解答，但曼迪，我只想回到您對毛利率的評論。所以你確實表示你預計它們會比前一年有所下降。因此，我只是好奇您是否可以與我們談談毛利率方面今年剩餘時間的看跌期權和看跌期權。

Yes. So as I mentioned in my prepared remarks, the gross margin for Q2 was a little bit better than we expected, and I largely think that comes down to the timing of when we're going to see some of these costs hit our P&L.

是的。正如我在準備好的發言中提到的，第二季度的毛利率比我們預期的要好一些，我認為這很大程度上取決於我們何時會看到其中一些成本影響我們的損益。

So for the first half of the year, gross margin was down roughly 250, 260 basis points. I think we expect to see that on the year, still targeting to see that type of decrease as we look out into the balance of the year. So again, it's going to be driven by those higher ocean freight costs, the FX impact as we've talked, with some slight offset with pricing as we talked about, but still seeing that 250 basis points kind of persist for the balance of the year.

因此，今年上半年，毛利率下降了大約 250、260 個基點。我認為我們預計今年會看到這種情況，當我們展望今年的剩餘時間時，我們仍然希望看到這種類型的下降。因此，這將再次受到更高的海運費、我們所說的外匯影響的推動，正如我們所說的，定價略有抵消，但仍然看到 250 個基點的平衡仍然存在。年。

Okay. Great. And then maybe just one follow-up, just going off on Mark's prior question. So you look at our first half of the year, sales were up almost 50% onto your basis. So it sounds like stimulus has clearly had a positive impact, at least on the first half of the year. If you look at your delivery, I mean is there anything else that -- cause for concern as you maybe lap that these quarters next year, whether pent-up demand or anything else in that base, that would concern you when you go to lap this next year?

好的。偉大的。然後也許只是一個後續行動，只是繼續馬克之前的問題。所以你看看我們今年上半年的銷售額，比你的基礎增長了近 50%。因此，聽起來刺激措施顯然產生了積極影響，至少在今年上半年是這樣。如果你看看你的交貨情況，我的意思是，還有什麼其他事情會引起你的擔憂，因為你可能會在明年這些季度進行圈速，無論是被壓抑的需求還是該基地的其他任何東西，當你去圈速時，這都會讓你擔心明年這個？

No. I mean as I have mentioned earlier, we feel great about our core business momentum that we're seeing across all of our brands. And so save for cycling those large numbers as we get up against the Q4 or into a Q1 next year, I mean our core business fundamentals still remain intact and quite strong.

不。我的意思是，正如我之前提到的，我們對所有品牌的核心業務勢頭感到非常滿意。因此，除了在明年第四季度或進入第一季度時循環這些大量數字外，我的意思是我們的核心業務基本面仍然完好無損且相當強勁。

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

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

Well, thank you for joining us today. I'm so grateful for our incredible team at e.l.f. for again delivering outstanding results. Our products are resonating. Our brand momentum and category outperformance is strong. And we believe continued execution of our 5 strategic imperatives will continue to fuel our ability to win.

好的，謝謝您今天加入我們。我非常感謝 e.l.f. 出色的團隊。再次取得優異的成績。我們的產品引起共鳴。我們的品牌勢頭和品類表現強勁。我們相信，繼續執行我們的 5 項戰略要務將繼續增強我們獲勝的能力。

We look forward to seeing some of you at our upcoming investor meetings and speaking with you in February when we'll discuss our third quarter results.

我們期待在即將舉行的投資者會議上見到你們，並在二月份與你們交談，屆時我們將討論我們的第三季度業績。

Thank you, and be well.

謝謝你，祝你一切順利。

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

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。