elf Beauty Inc (ELF) 2022 Q1 法說會逐字稿

Thank you for joining us today to discuss e.l.f. Beauty's First Quarter Fiscal 2022 Results. I'm KC Katten, Vice President of Corporate Development and Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer. 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.

感謝您今天加入我們討論 e.l.f.Beauty 2022 財年第一季度業績。我是 KC Katten，企業發展和投資者關係副總裁。今天與我在一起的有董事長兼首席執行官塔朗·阿明 (Tarang Amin)；以及高級副總裁兼首席財務官 Mandy Fields。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 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，該公司今天的演示文稿還包括基於非公認會計原則（Non-GAAP）的信息。我們的收益報告包含非公認會計原則表述與最直接可比的公認會計原則衡量指標之間差異的調節。

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

接下來，讓我將網絡廣播轉交給塔朗。

Thank you, KC, and good afternoon, everyone. Today, we will discuss the drivers of our Q1 results as well as our raised outlook for fiscal 2022.

謝謝你，KC，大家下午好。今天，我們將討論第一季度業績的驅動因素以及我們上調的 2022 財年前景。

I want to start by recognizing our e.l.f. Beauty team. We delivered Q1 results well ahead of our expectations with Q1 net sales of $97 million, up 50% versus a year ago. Q1 marked our 10th consecutive quarter of net sales growth and our largest net sales quarter ever. We delivered adjusted EBITDA of $22 million, up 40% versus a year ago.

我想從認識我們的 e.l.f 開始。美容團隊。我們交付的第一季度業績遠遠超出了我們的預期，第一季度淨銷售額為 9700 萬美元，比去年同期增長 50%。第一季度標誌著我們連續第十個季度實現淨銷售額增長，也是我們有史以來最大的淨銷售額季度。我們的調整後 EBITDA 為 2200 萬美元，比一年前增長 40%。

Color cosmetics category trends are inflecting positively, fueled by pent-up demand, stimulus money and easing COVID restrictions. The category grew in June above 2019 pre-pandemic levels for the first time this year. We're outperforming our competitors in this backdrop, underscoring the strength of the e.l.f. business model.

在被壓抑的需求、刺激資金和放鬆新冠限制的推動下，彩妝品類趨勢正在發生積極變化。該類別 6 月份的增長今年首次超過 2019 年大流行前的水平。在這種背景下，我們的表現優於競爭對手，凸顯了 e.l.f. 的實力。商業模式。

Our products are resonating in our digitally led strategy, core value proposition and ability to adapt at e.l.f. speed continue to fuel our performance. In Q1, e.l.f. was the only top 5 color cosmetics brand to post retail sales growth above 2019 levels. e.l.f. continued to gain market share with 5.5% of the category, up 20 basis points year-over-year. e.l.f. was the only top 5 color cosmetics brand to grow share above pre-pandemic levels by a wide margin.

我們的產品在我們的數字主導戰略、核心價值主張和 e.l.f 適應能力中產生共鳴。速度繼續推動我們的業績。在第一季度，e.l.f.是唯一一個零售額增速高於 2019 年水平的前 5 名彩妝品牌。e.l.f.繼續獲得市場份額，佔該類別的 5.5%，同比增長 20 個基點。e.l.f.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。

We are progressing to a multibrand portfolio. In Q1, recharged packaging for W3LL PEOPLE hit shelves, and we expanded our product offerings for Keys Soulcare. We feel great about the progress we're making across the portfolio and particularly the early wins we're seeing with W3LL PEOPLE and Keys Soulcare as we build awareness behind these brands.

我們正在邁向多品牌組合。第一季度，W3LL PEOPLE 的充電包裝上架，我們擴大了 Keys Soulcare 的產品範圍。我們對我們在整個產品組合中取得的進展感到非常高興，特別是我們在 W3LL PEOPLE 和 Keys Soulcare 上看到的早期勝利，因為我們在這些品牌背後建立了知名度。

With the momentum across our portfolio, we're raising our full year guidance, which Mandy will discuss shortly.

隨著我們投資組合的勢頭，我們正在提高全年指導，曼迪將很快討論這一點。

Our relentless focus on our 5 strategic imperatives is driving results. Let me provide a few highlights from the quarter. Our first strategic imperative is to drive brand demand. e.l.f. Cosmetics has nearly 12 million followers across our digital ecosystem, growing double digits year-over-year. We recently completed our annual Nielsen marketing mix analysis and again saw strong ROI results for our marketing investments, giving us further confidence that our marketing and digital initiatives are driving profitable sales. We see this as a time to lean into our strengths, and we've decided to strategically invest more behind our brand momentum at an expected rate of 15% to 17% of net sales. We continue to find innovative ways to engage and entertain our community, moving far beyond traditional beauty boundaries.

我們對 5 項戰略要務的不懈關注正在推動取得成果。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。e.l.f.化妝品在我們的數字生態系統中擁有近 1200 萬粉絲，同比增長兩位數。我們最近完成了年度尼爾森營銷組合分析，並再次看到我們的營銷投資取得了強勁的投資回報率，這讓我們進一步相信我們的營銷和數字計劃正在推動盈利銷售。我們認為這是發揮我們優勢的時機，我們決定以占淨銷售額 15% 至 17% 的預期比例進行更多戰略投資，以支持我們的品牌勢頭。我們不斷尋找創新的方式來吸引和娛樂我們的社區，遠遠超越傳統的美容界限。

We're pushing further into gaming, which resonates strongly with our young, diverse community. In a social survey, over 70% of e.l.f. fans responded that they play video games, and 65% like to watch gamers play on platforms like Twitch and YouTube. We were the first major beauty company to launch a branded channel on Twitch named e.l.f. You, centered around the concept of Game-Up or the intersection between gaming and makeup.

我們正在進一步推進遊戲領域，這與我們年輕、多元化的社區產生了強烈的共鳴。在一項社會調查中，超過 70% 的 e.l.f.粉絲們表示他們玩電子遊戲，65% 的人喜歡在 Twitch 和 YouTube 等平台上觀看遊戲玩家玩遊戲。我們是第一家在 Twitch 上推出名為 e.l.f 的品牌頻道的大型美容公司。你，以 Game-Up 的概念或遊戲與化妝之間的交叉點為中心。

We also partnered with TikTok and Enthusiast Gaming to launch the TikTok Gamers Got Talent contest. We far exceeded the challenge benchmarks that we set in terms of engagement rates, video creations and average watch time per person. The TikTok Gamers Got Talent hashtag generated nearly 17 billion views.

我們還與 TikTok 和 Enthusiast Gaming 合作推出了 TikTok 玩家達人大賽。我們在參與率、視頻創作和人均觀看時間方面遠遠超出了我們設定的挑戰基準。TikTok Gamers Got Talent 標籤產生了近 170 億次瀏覽。

We're disrupting the digital space as we continue to test and learn on new frontiers. We created Crypto Cosmetics and launched a series of nonfungible tokens or as we call them, Ne.l.f. Ts. Three of e.l.f.'s holy grail products, our Poreless Putty Primer, 16HR Camo Concealer and Ride or Die Lip Balm, were dipped in digital gold and went 100% crypto. In true e.l.f. speed, our 9 limited edition Ne.l.f. Ts sold out in just 9 minutes.

隨著我們不斷在新領域進行測試和學習，我們正在顛覆數字空間。我們創建了 Crypto Cosmetics 並推出了一系列不可替代的代幣，或者我們稱之為 Ne.l.f。TS。e.l.f. 的三款聖杯產品，我們的 Poreless Putty Primer、16HR Camo Concealer 和 Ride or Die Lip Balm，都浸入了數字黃金並實現了 100% 加密。在真正的 e.l.f.速度，我們的 9 款限量版 Ne.l.f.Ts 僅僅 9 分鐘就售空了。

e.l.f. was the first beauty brand on Wattpad, the world's largest social storytelling platform. Our #eyeslipsfierce write-a-thon challenge asked users to share original stories of women in their lives who inspire them to be strong, smart and fierce. Our challenge generated the largest number of entries of any female-targeted campaign to date on the platform.

e.l.f.是全球最大的社交講故事平台 Wattpad 上的第一個美容品牌。我們的 #eyeslipsfierce 寫作馬拉松挑戰要求用戶分享生活中女性的原創故事，這些故事激勵她們變得堅強、聰明和兇猛。我們的挑戰是迄今為止該平台上針對女性的活動中收到最多數量的參賽作品的。

We teamed up with Snapchat to test the platform's new augmented reality lenses. These new AR lenses provide consumers with unique makeup try-on experiences for nearly 800 of our SKUs. We're already seeing Snapchatters engage with our products in new and meaningful ways.

我們與 Snapchat 合作測試該平台的新增強現實鏡頭。這些新型 AR 鏡片為我們近 800 個 SKU 的消費者提供了獨特的試妝體驗。我們已經看到 Snapchatter 以新穎且有意義的方式與我們的產品互動。

Our brand-building efforts continue to win awards. In Kyra's recent Gen Z State of Beauty report, e.l.f. Cosmetics ranked as the #2 favorite beauty brand in 2021, up from #9 in 2019, reflecting our growing appeal with Gen Z.

我們的品牌建設努力不斷獲獎。在 Kyra 最近的 Z 世代美麗狀況報告中，e.l.f.化妝品在 2021 年最受歡迎的美容品牌中排名第二，高於 2019 年的第 9 位，反映出我們對 Z 世代的吸引力不斷增強。

We won 2 Cannes Lions, the global benchmark for creative excellence, in recognition of our #eyeslipface campaign and our e.l.f. x Chipotle collaboration.

我們贏得了 2 屆戛納創意節大獎，這是卓越創意的全球標杆，以表彰我們的 #eyeslipface 活動和 e.l.f.x Chipotle 合作。

Business Insider named Kory Marchisotto and e.l.f. Board member Kenny Mitchell as 2 of the most innovative CMOs in the world, putting e.l.f. in admirable company with leaders from Chipotle, TikTok, Sephora and LEGO. Congratulations, Kory, Kenny and our entire marketing team.

《商業內幕》報導稱 Kory Marchisotto 和 e.l.f.董事會成員肯尼·米切爾 (Kenny Mitchell) 被譽為全球最具創新精神的兩位 CMO，將 e.l.f.與 Chipotle、TikTok、Sephora 和 LEGO 的領導者合作，令人欽佩。恭喜 Kory、Kenny 和我們整個營銷團隊。

Keys Soulcare, our groundbreaking lifestyle beauty brand with Alicia Keys, is already being recognized as both timely and timeless. We garnered 6 billion global press impressions in the last quarter alone. Alicia is proud, passionate and committed. She was featured on the cover of 5 highly coveted publications around the globe promoting Keys Soulcare and our product offerings with in-depth multipage features. In addition, Alicia supports Keys Soulcare across her social channels. Her post about our new body care offerings generated over 11 million views.

Keys Soulcare 是我們與 Alicia Keys 合作的開創性生活方式美容品牌，已被認為是及時且永恆的。僅上個季度，我們就獲得了 60 億次全球媒體曝光。艾麗西亞感到自豪、充滿熱情和忠誠。她出現在全球 5 家備受追捧的出版物的封面上，以深入的多頁功能宣傳 Keys Soulcare 和我們的產品。此外，Alicia 通過她的社交渠道支持 Keys Soulcare。她關於我們新的身體護理產品的帖子獲得了超過 1100 萬次瀏覽。

Turning to W3LL PEOPLE, our pioneering Clean Beauty brand known for its dermatologist-developed, plant-powered and high-performance products. The brand turned 13 in June, and we are thrilled to celebrate with a new look, new and improved formulas and new products. This quarter, we rolled out new packaging, which is resulting in improved click-through rates on our paid media. The brand is shining across top-tier media outlets, ranking #1 in share of voice of press impressions against its competitive set. We feel great about W3LL PEOPLE, and we are encouraged by the stronger sales trends we're seeing.

轉向 W3LL PEOPLE，我們的清潔美容先鋒品牌以其皮膚科醫生開發的、植物動力的高性能產品而聞名。該品牌於 6 月迎來了 13 歲生日，我們很高興以新的外觀、新的和改進的配方以及新產品來慶祝。本季度，我們推出了新包裝，從而提高了付費媒體的點擊率。該品牌在頂級媒體上大放異彩，在媒體印像中的聲音份額在其競爭對手中排名第一。我們對 W3LL PEOPLE 感覺很好，我們看到的強勁銷售趨勢也讓我們深受鼓舞。

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 did see a channel shift between digital and brick-and-mortar in Q1, in line with our expectations, as consumers gain comfort returning to stores and as we lap periods last year where certain retailer doors were closed. Digital channels drove 13% of our total business in Q1 as compared to 19% a year ago and 8% 2 years ago.

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。我們確實在第一季度看到了數字化和實體店之間的渠道轉變，這符合我們的預期，因為消費者對重返商店感到放心，並且去年某些零售商關門了。第一季度，數字渠道占我們總業務的 13%，而一年前為 19%，兩年前為 8%。

On elfcosmetics.com, over 50% of our shoppers in Q1 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 nearly 2.6 million members, up over 30% year-over-year. Our loyalty members are a highly valuable part of our digital ecosystem. They have higher order values, purchase more frequently, have stronger retention rates and drive almost 70% of our sales on elfcosmetics.com.

在 elfcosmetics.com 上，第一季度超過 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 忠誠計劃。Beauty Squad目前擁有近260萬會員，同比增長超過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。他們的訂單價值更高、購買更頻繁、保留率更高，並且推動了 elfcosmetics.com 上近 70% 的銷售額。

We're excited to announce that we launched our global Keys Soulcare loyalty program in May called Soulcare Rewards. Our rewards page is already one of the top click pages on our mobile site, and reward members are making up an increasing percent of our sales on keyssoulcare.com.

我們很高興地宣布，我們於五月推出了名為 Soulcare 獎勵的全球 Keys Soulcare 忠誠度計劃。我們的獎勵頁面已經是我們移動網站上點擊率最高的頁面之一，並且獎勵會員在我們 keysoulcare.com 上的銷售額中所佔的比例越來越大。

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 price points 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 our sales. We have the #1 or 2 position in all 5 segments and continue to drive market share gains in each.

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實惠的價格提供 100% 零殘忍、優質的美容產品，並具有廣泛的吸引力，繼續引起消費者的共鳴。e.l.f.本季度，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）上持續取得成功，約占我們銷售額的一半。我們在所有 5 個細分市場中都佔據第一或第二的位置，並繼續推動每個細分市場的市場份額增長。

Importantly, we're innovating to build upon our core franchises and deliver newness for consumers. In Q1, we launched our Acne Fighting Putty Primer and our Putty Bronzer, building on the success of our Putty Primer franchise. The consumer response has been phenomenal. Our Acne Fighting Putty Primer is our best-selling SKU in elfcosmetics.com since launch, and our Putty Bronzer is getting rave reviews on TikTok in its first few weeks.

重要的是，我們正在創新，以我們的核心特許經營為基礎，​​為消費者帶來新鮮感。在第一季度，我們在 Putty Primer 系列產品取得成功的基礎上推出了 Acne Fighting Putty Primer 和 Putty Bronzer。消費者的反應是驚人的。自推出以來，我們的 Acne Fighting Putty Primer 是 elfcosmetics.com 上最暢銷的 SKU，而我們的 Putty Bronzer 在推出的最初幾週內就在 TikTok 上獲得了好評如潮。

We also launched limited Electric Mood collection, which we developed with our annual beauty competition winners. Inspired by 3 musical artists, including Grammy-nominated global superstar Tove Lo, our Electric Mood collection is exclusively available at elfcosmetics.com and with Target.

我們還推出了限量版 Electric Mood 系列，該系列是我們與年度選美比賽獲獎者共同開發的。我們的 Electric Mood 系列受到 3 名音樂藝術家（包括格萊美提名的全球巨星 Tove Lo）的啟發，在 elfcosmetics.com 和 Target 獨家發售。

Skin care remains a major focus across our brand portfolio, and we're encouraged by the marketing strategy and innovation pipeline we have planned for e.l.f. skin. In Q1, we launched our Holy Hydration! Face Cream with SPF 30, adding SPF protection to our best-selling face cream. This product is clearly resonating with consumers and is our best-selling skin care SKU since its launch.

皮膚護理仍然是我們品牌組合的主要關注點，我們為 e.l.f. 規劃的營銷策略和創新渠道深受鼓舞。皮膚。在第一季度，我們推出了Holy Hydration！SPF 30 面霜，為我們最暢銷的面霜增添了 SPF 保護。該產品顯然引起了消費者的共鳴，是我們自推出以來最暢銷的護膚品SKU。

Keys Soulcare further fuels our momentum and overall product range in this category. Consumers are highlighting the quality of the brand's initial skin care collection with admirable product ratings of 4.9 out of 5 on keyssoulcare.com. We also recently launched new Keys Soulcare starter sets to encourage trial for new consumers.

Keys Soulcare 進一步推動了我們在這一類別中的發展勢頭和整體產品系列。消費者對該品牌最初的護膚系列的質量表示讚賞，在keysoulcare.com 上的產品評分為 4.9 分（滿分 5 分）。我們最近還推出了新的 Keys Soulcare 入門套裝，以鼓勵新消費者試用。

Looking beyond skin care, we remain excited about the multiyear, multicategory innovation pipeline we have planned for this brand. In Q1, we expanded our product offerings into a new category, body care, with 3 new offerings that align with the brand's commitment to restorative rituals. The new body care offerings celebrate the strength and beauty of the body while reinforcing body positivity. The campaign includes individuals of varied shapes, sizes, interests and points of view and asks lightworkers to share their views on how they let go of labels and make time for self-celebrations.

除了護膚品之外，我們仍然對我們為該品牌規劃的多年、多類別創新渠道感到興奮。在第一季度，我們將產品範圍擴大到一個新類別：身體護理，推出了 3 種新產品，符合該品牌對恢復儀式的承諾。新的身體護理產品頌揚身體的力量和美麗，同時增強身體的積極性。該活動包括不同體型、身材、興趣和觀點的個人，並要求光之工作者分享他們對如何擺脫標籤並騰出時間進行自我慶祝的看法。

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Our fourth strategic imperative is driving productivity and space expansion with our retail partners. With e.l.f. Cosmetics, we continue to see shelf space opportunity with our key retailers. To that end, we're pleased to announce that we've earned space expansion with CVS for fall 2021 and Walmart for spring 2022 in a subset of each of their doors.

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。與 e.l.f.化妝品方面，我們繼續看到主要零售商的貨架空間機會。為此，我們很高興地宣布，我們已與 CVS 和 Walmart 獲得了 2021 年秋季和 2022 年春季的空間擴展，分別在其各自門店的一部分進行空間擴展。

Internationally, which represents major white space, we're also pleased to announce that we're expanding our shelf space with Boots in the U.K. for spring 2022. Keys Soulcare is elevating and accelerating our global retail strategy. We've launched the brand in 10 countries to date with 3 major retail partners: In the U.S. with Ulta Beauty, in the U.K. with Cult Beauty and in 8 countries across Western Europe with Douglas.

在國際上，這是一個主要的空白區域，我們還很高興地宣布，我們將於 2022 年春季在英國擴大 Boots 的貨架空間。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 3 個主要零售合作夥伴在 10 個國家/地區推出了該品牌：在美國與 Ulta Beauty 合作，在英國與 Cult Beauty 合作，在西歐 8 個國家與 Douglas 合作。

We recently launched with our fourth major retail partner, Harrods in the U.K. Keys Soulcare launched online at harrods.com in June and in H beauty retail stores in July. Keys Soulcare continues to open new doors for our brand portfolio internationally, and we remain excited about the global potential we see for this brand.

我們最近與第四大零售合作夥伴 Harrods 在英國 Keys Soulcare 合作，於 6 月在 harrods.com 線上推出，並於 7 月在 H Beauty 零售店推出。Keys Soulcare 繼續為我們的國際品牌組合打開新的大門，我們對這個品牌的全球潛力仍然感到興奮。

We're also pleased to announce space expansion we've secured for W3LL PEOPLE by leveraging our strong relationships with our retail partners. Ulta Beauty will be featuring the brand via in-line space in a subset of their doors starting in spring 2022. This marks the brand's first in-line placement at Ulta Beauty stores after being featured on a limited edition endcap as part of Ulta's Conscious Beauty program. W3LL People continues to raise the standard for high-performance, plant-powered clean beauty.

我們還很高興地宣布，我們利用與零售合作夥伴的牢固關係，為 W3LL PEOPLE 提供了空間擴張。從 2022 年春季開始，Ulta Beauty 將通過其部分門內的內嵌空間展示該品牌。這標誌著該品牌繼作為 Ulta Conscious Beauty 計劃的一部分出現在限量版瓶蓋上之後，首次進入 Ulta Beauty 商店。W3LL People 不斷提高高性能、植物動力清潔美容的標準。

Our fifth strategic imperative is delivering cost savings to help fuel brand investments. As we spoke about last quarter, and like many companies, we are seeing a global imbalance of containers, which is slowing some of our shipments and increasing our transportation costs. I'm incredibly proud of the e.l.f. Beauty team for how we've navigated these logistics. Even with the container capacity issues we are seeing, we've been able to maintain approximately 95% in-stock levels with our key retail partners.

我們的第五個戰略要務是節省成本，以幫助推動品牌投資。正如我們上季度談到的那樣，與許多公司一樣，我們看到了全球集裝箱的不平衡，這導致我們的部分貨運速度放緩並增加了我們的運輸成本。我為 e.l.f 感到無比自豪。美容團隊了解我們如何處理這些物流。即使我們遇到了集裝箱容量問題，我們仍然能夠與主要零售合作夥伴保持約 95% 的庫存水平。

As we look forward, and to ensure we're prioritizing our core business and meeting the ongoing strength in consumer demand, we've decided to forgo our 2021 holiday program, a limited edition collection of gift sets. The impact is embedded in our raised guidance and further reflects our core business strength. We remain confident in our ability to navigate these global supply chain challenges and believe that our supply chain is a competitive advantage that enables us to deliver the best combination of cost, quality and speed.

展望未來，為了確保我們優先考慮我們的核心業務並滿足消費者持續強勁的需求，我們決定放棄 2021 年假期計劃，即限量版禮品套裝系列。這種影響體現在我們提出的指導意見中，並進一步反映了我們的核心業務實力。我們對應對這些全球供應鏈挑戰的能力仍然充滿信心，並相信我們的供應鍊是一種競爭優勢，使我們能夠提供成本、質量和速度的最佳組合。

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. We lead with purpose. By standing with every eye, lip, face and paw, we are committed to operating in a sustainable manner and being a responsible corporate citizen for the benefit of our consumers, our investors, our team, the environment and the communities in which we live and work. In fact, Fortune recently named e.l.f. Beauty as one of the best workplaces in 2021.

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。我們有目標地領導。我們竭盡全力，致力於以可持續的方式運營，成為負責任的企業公民，造福於我們的消費者、投資者、團隊、環境和我們所生活的社區。工作。事實上，《財富》雜誌最近將 e.l.f. 命名為 e.l.f.美容被評為 2021 年最佳工作場所之一。

In Q1, we launched a new social impact section of our e.l.f. Beauty website to enhance our ESG policies and disclosures with enthusiastic support from business leaders throughout the company as well as our Board of Directors. We look forward to continuing to share our progress on our ESG journey.

在第一季度，我們推出了 e.l.f. 的新社會影響部分。美容網站在全公司商界領袖以及董事會的熱情支持下加強了我們的 ESG 政策和披露。我們期待繼續分享我們在 ESG 之旅上取得的進展。

Our company was founded 17 years ago with the mission 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. Today, we have a portfolio of complementary but distinct brands, with each positioned to touch diverse consumer cohorts at different price points. Looking ahead, we believe we're still in the early stages of realizing the full potential of our business and see significant opportunity in fiscal '22 and beyond. I believe we are well positioned to drive growth in both the top and bottom line as reflected in our raised guidance.

我們公司成立於 17 年前，其使命是讓每個眼睛、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。如今，我們擁有互補但獨特的品牌組合，每個品牌都定位於以不同的價位接觸不同的消費者群體。展望未來，我們相信我們仍處於充分發揮業務潛力的早期階段，並看到 22 財年及以後的重大機遇。我相信，正如我們提出的指導意見所反映的那樣，我們有能力推動營收和利潤的增長。

I'll now turn the call over to Mandy.

我現在將電話轉給曼迪。

Thank you, Tarang. I am pleased to share the highlights of our outstanding first quarter results and our raised fiscal 2022 outlook. We delivered Q1 net sales growth of 50% versus prior year, driven by ongoing momentum across our brand portfolio, better fulfillment rates than we expected and benefits from stimulus-related spending. We also saw an improvement in our performance at Ulta and internationally, particularly as we lapped periods of store closures from a year ago.

謝謝你，塔朗。我很高興與大家分享我們出色的第一季度業績以及我們上調的 2022 財年展望的亮點。在我們品牌組合的持續增長勢頭、高於我們預期的履約率以及刺激相關支出的推動下，我們第一季度的淨銷售額較上年增長了 50%。我們還看到 Ulta 和國際上的業績有所改善，特別是在我們經歷了一年前的商店關閉期之後。

Gross margin of 64% was down approximately 340 basis points compared to prior year. We saw gross margin benefits from margin-accretive innovation and cost savings. We also implemented price increases on a subset of our SKUs this quarter, mainly internationally. Gross margin benefits were more than offset by changing FX rates and elevated transportation costs as we worked to navigate the global container imbalance. The year-over-year change in channel mix also impacted gross margin as consumers shifted from e-commerce to brick-and-mortar.

毛利率為 64%，比上年下降約 340 個基點。我們看到毛利率受益於利潤增長型創新和成本節約。本季度我們還對部分 SKU 進行了提價，主要是在國際範圍內。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毛利率收益。隨著消費者從電子商務轉向實體店，渠道組合的同比變化也影響了毛利率。

On an adjusted basis, SG&A as a percentage of sales was 47% compared to 51% last year. Our increased investment behind marketing and digital was more than offset by leverage in our nonmarketing-related spend from the combination of better-than-expected top line trends and taking a sharper look at our expenses. Marketing and digital investment for the quarter was approximately 16% of net sales versus 11% a year ago. Q1 adjusted EBITDA was $22 million, up 40% versus last year, and adjusted EBITDA margin was approximately 22% of net sales.

調整後，SG&A 佔銷售額的百分比為 47%，而去年為 51%。我們在營銷和數字方面增加的投資被我們的非營銷相關支出的槓桿所抵消，這些槓桿來自於好於預期的營收趨勢和對我們支出的更敏銳的審視。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 11%。第一季度調整後 EBITDA 為 2200 萬美元，比去年增長 40%，調整後 EBITDA 利潤率約為淨銷售額的 22%。

Adjusted net income was $14 million or $0.27 per diluted share compared to $9 million or $0.17 per diluted share a year ago. Our liquidity remained strong with the combination of our cash balance and access to our revolving credit facility sitting at over $130 million. We ended the quarter with $63 million in cash on hand compared to a cash balance of $54 million a year ago. Our ending inventory balance was relatively in line with last year and will build as we approach September. We expect to increase our inventory levels to approximately $75 million to $80 million, driven by longer lead times, higher transportation costs, the addition of Keys Soulcare and W3LL PEOPLE and continued business momentum. We expect our cash priorities for the coming year to remain focused on investing behind our 5 strategic imperatives and supporting our strategic extensions.

調整後淨利潤為 1400 萬美元，即稀釋後每股收益 0.27 美元，而一年前為 900 萬美元，即稀釋後每股收益 0.17 美元。我們的現金餘額和循環信貸額度超過 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 6,300 萬美元，而一年前的現金餘額為 5,400 萬美元。我們的期末庫存餘額與去年基本一致，並且隨著 9 月份的臨近，庫存餘額將會增加。由於交貨時間更長、運輸成本更高、Keys Soulcare 和 W3LL PEOPLE 的增加以及持續的業務勢頭，我們預計庫存水平將增加至約 7500 萬至 8000 萬美元。我們預計來年的現金優先事項將繼續集中於投資支持我們的 5 項戰略要務並支持我們的戰略擴展。

Now let's turn to our outlook for fiscal 2022. As Tarang discussed, our investments are working. And our momentum and category outperformance is strong, as demonstrated by the 50% net sales growth we delivered in Q1. Our recently completed annual Nielsen marketing mix analysis again showed strong ROI, giving us further confidence that our marketing and digital initiatives are driving profitable sales and indicating an opportunity to invest more behind our brands.

現在讓我們展望 2022 財年。正如塔朗所討論的，我們的投資正在發揮作用。我們的勢頭和品類表現強勁，第一季度淨銷售額增長 50% 就證明了這一點。我們最近完成的年度尼爾森營銷組合分析再次顯示出強勁的投資回報率，使我們進一步相信我們的營銷和數字計劃正在推動盈利銷售，並表明有機會在我們的品牌背後進行更多投資。

As a result, we made a proactive decision to invest behind our strength and take our marketing spend up to approximately 15% to 17% of net sales for fiscal 2022 as compared to our expectation for 14% to 16% previously. This increased investment, coupled with modest pipeline from space gains as well as our expectations for continued business momentum, is supporting our significantly increased top line outlook.

因此，我們主動決定投資於我們的實力，並將 2022 財年的營銷支出提高到淨銷售額的約 15% 至 17%，而我們之前的預期為 14% 至 16%。投資的增加，加上太空收益的適度增長以及我們對持續業務勢頭的預期，支撐著我們顯著提高的營收前景。

We now expect net sales growth of approximately 12% to 14% versus fiscal 2021, up from 8% to 10% previously. We expect adjusted EBITDA between $66.5 million to $68 million, up from $66 million to $67.5 million previously; adjusted net income between $36 million to $37.5 million, up from $35 million to $36.8 million previously; and adjusted EPS of $0.65 to $0.68 per diluted share, up from $0.64 to $0.67 previously. We still expect a fully diluted share count of approximately 55 million shares and our fiscal 2022 tax rate to be approximately 24% to 25%.

我們現在預計淨銷售額較 2021 財年增長約 12% 至 14%，高於之前的 8% 至 10%。我們預計調整後 EBITDA 介於 6650 萬美元至 6800 萬美元之間，高於之前的 6600 萬美元至 6750 萬美元；調整後的淨收入從之前的3500萬美元增至3680萬美元，從3600萬美元增至3750萬美元；調整後每股攤薄每股收益從 0.64 美元增至 0.67 美元，調整為 0.65 美元至 0.68 美元。我們仍然預計完全稀釋後的股數約為 5500 萬股，2022 財年稅率約為 24% 至 25%。

Let me provide you with a little more color on our planning assumptions for fiscal 2022. First, on our decision to forgo our 2021 holiday program. As Tarang mentioned, we made this decision to ensure we're prioritizing container space for our core business. This is expected to result in an approximately $6 million reduction to net sales largely in Q3. The elimination of our holiday program will impact our Nielsen results during the Thanksgiving through New Year's time frame.

讓我為您提供更多有關 2022 財年規劃假設的信息。首先，關於我們決定放棄 2021 年假期計劃。正如塔朗所提到的，我們做出這一決定是為了確保我們優先考慮我們的核心業務的集裝箱空間。預計這將導致第三季度的淨銷售額減少約 600 萬美元。取消假期計劃將影響感恩節至新年期間的尼爾森業績。

The good news is that we still plan to have some holiday-themed deluxe kits, although in smaller quantities than our traditional holiday program. And we plan to have creative marketing around holiday to keep up our consumer engagement. We remain confident in our ability to navigate these global supply chain challenges and meet our ongoing strength in consumer demand, as reflected in our raised guidance.

好消息是，我們仍然計劃提供一些節日主題的豪華套裝，儘管數量比我們的傳統節日計劃要少。我們計劃在假期期間進行創意營銷，以保持消費者的參與度。正如我們提出的指導意見所反映的那樣，我們對應對這些全球供應鏈挑戰並滿足消費者需求的持續優勢的能力充滿信心。

Second, on adjusted EBITDA. Our guidance now implies 9% to 11% year-over-year growth in adjusted EBITDA. Relative to our previous guidance, we do expect some incremental margin pressure from the combination of increased marketing spend as well as costs associated with the space expansion we spoke about. Outside of these factors, our underlying assumptions are largely unchanged. We continue to expect gross margin to be down year-over-year as we face growing FX headwinds and rising material and transportation costs. As we've discussed previously, we are pulling levers to help mitigate a portion of these gross margin impacts, including through select price increases and cost savings initiatives.

其次，關於調整後的 EBITDA。我們現在的指導意味著調整後 EBITDA 同比增長 9% 至 11%。相對於我們之前的指導，我們確實預計營銷支出增加以及我們談到的空間擴張相關成本的結合會帶來一些增量的利潤壓力。除了這些因素之外，我們的基本假設基本沒有改變。由於我們面臨不斷增長的外匯逆風以及不斷上升的材料和運輸成本，我們仍然預計毛利率將同比下降。正如我們之前所討論的，我們正在採取措施來幫助減輕部分毛利率影響，包括通過有選擇的提價和成本節約舉措。

Within SG&A, we continue to expect to leverage on our nonmarketing SG&A spend, both as we take a sharper look at our key areas of spend and as we start to scale the Keys Soulcare and W3LL PEOPLE brands.

在 SG&A 方面，我們繼續期望利用我們的非營銷 SG&A 支出，因為我們更仔細地審視我們的關鍵支出領域，並且我們開始擴大 Keys Soulcare 和 W3LL PEOPLE 品牌的規模。

As a reminder, fiscal 2022 will be the first year within our 3-year long-term economic model, which targets compounded annual top line growth in the mid- to high single digits, with adjusted EBITDA growth outpacing net sales growth over that horizon. We're pleased to be targeting top line growth well above that range this year. Against the backdrop of global cost pressures and our desire to invest more in marketing, we still anticipate healthy adjusted EBITDA growth in fiscal 2022 and remain focused on expanding our adjusted EBITDA margins over the next 3 years.

需要提醒的是，2022 財年將是我們三年長期經濟模型的第一年，該模型的目標是實現中高個位數的複合年度營收增長，調整後的EBITDA 增長超過該時期的淨銷售額增長。我們很高興今年的營收增長目標遠高於該範圍。在全球成本壓力和我們希望加大營銷投入的背景下，我們仍然預計 2022 財年調整後 EBITDA 將實現健康增長，並繼續專注於在未來 3 年擴大調整後 EBITDA 利潤率。

In summary, we're pleased with our outstanding Q1 results and are excited about the opportunities ahead in fiscal 2022. Our performance over the last 10 quarters, both on an absolute basis and relative to the category, demonstrates how our 5 strategic imperatives are driving results and gives me confidence for the future.

總之，我們對第一季度的出色業績感到滿意，並對 2022 財年未來的機遇感到興奮。我們過去 10 個季度的表現，無論是絕對基礎還是相對於類別的表現，都表明我們的 5 項戰略要務如何推動業績，並讓我對未來充滿信心。

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) And the first question comes from Erinn Murphy with Piper Sandler.

（操作員說明）第一個問題來自 Erinn Murphy 和 Piper Sandler。

Congratulations on a very solid quarter. I guess my first question, Tarang, is for you. On the color cosmetics category broadly, it seems like it's had a little bit of traction of late. Can you just share how you're thinking about the sustainability of the category as we move forward? And have you seen anything as it relates to the Delta variant and some of the concerns domestically, certain markets starting to wear masks again? Has that impacted any of the recovery in this category?

祝賀本季度業績非常穩健。我想我的第一個問題是問你的，塔朗。從廣義上講，彩妝品類最近似乎有一些吸引力。您能否分享一下您對我們前進過程中該類別的可持續性的看法？您是否看到了與達美航空變種有關的任何事情以及國內的一些擔憂，某些市場再次開始戴口罩？這是否影響了該類別的複蘇？

Well, we're -- we remain quite bullish on the color cosmetics category. As we talked, June was the first month in tracked data that we saw the category above 2019 levels. So we've seen a pretty good inflection. And I think that's reflective of consumers' pent-up demand for this category, stimulus, easing of restrictions. And so I'd say overall, we're quite bullish on the category going forward.

嗯，我們仍然非常看好彩妝類別。正如我們所說，6 月是跟踪數據中我們看到該類別高於 2019 年水平的第一個月。所以我們看到了一個非常好的變化。我認為這反映了消費者對該類別、刺激措施和放鬆限制的壓抑需求。所以我想說，總的來說，我們非常看好這個類別的未來。

In terms of the Delta variant and any additional restrictions, it's hard for us to tease that out. I think in the backdrop of higher consumer demand as well as stepped-up innovation not only from us but also from some of our competitors, we're liking the trends that we're seeing across each of the core categories within color cosmetics.

就 Delta 變體和任何其他限製而言，我們很難弄清楚這一點。我認為，在消費者需求增加以及我們和一些競爭對手不斷加強創新的背景下，我們喜歡彩妝每個核心類別中看到的趨勢。

The next question is from Andrea Teixeira with JPMorgan.

下一個問題來自摩根大通的 Andrea Teixeira。

I'm going to echo the congratulations for the quarter and also to Kory for -- I'm not surprised, but I'm so impressed with her awards. I just want to go back to the guide. And I think, Mandy, you mentioned, obviously, you're accelerating, but that means that after this 50% growth that you had in the first quarter. Can you walk us through what is informing you into the deceleration? Of course, I understand that you're still facing a lot of supply chain issues. And I think we all understood very well through the CPG earnings season that this is real.

我要表達對本季度的祝賀，並對科里表示祝賀——我並不感到驚訝，但她的獎項給我留下了深刻的印象。我只想回到指南。我認為，曼迪，你提到，很明顯，你正在加速，但這意味著在第一季度實現 50% 的增長之後。您能否向我們介紹一下導致您減速的原因是什麼？當然，我知道你們仍然面臨很多供應鏈問題。我認為通過快速消費品財報季我們都非常清楚這是真實的。

And -- but is there anything else that you want to highlight that you're seeing in terms of -- I think your answer to Erinn's question is no, you're not seeing any deceleration. And I think the momentum that you've built and increasing -- I was just checking, I think you increased 500 basis points as a percentage of sales in your marketing investment year-over-year, and you're building into 100 basis points higher than you had before. So what is informing you? And then on the same metric, why not taking more pricing to defend profitability and let it flow a little bit more into the bottom line?

而且——但是你還有什麼想強調的，你所看到的——我認為你對艾琳問題的回答是否定的，你沒有看到任何減速。我認為你們已經建立並不斷增長的勢頭——我只是在檢查，我認為你們在營銷投資中佔銷售額的百分比同比增加了 500 個基點，並且正在增加 100 個基點比你以前更高。那麼什麼通知你呢？然後，按照相同的指標，為什麼不採取更多定價來捍衛盈利能力，並讓它更多地流入利潤呢？

Okay. All right, Andrea. Nice to hear from you. And there's quite a few questions in there. So let me just start with where we are in Q1. So Q1 was a fantastic quarter for us, up 50% net sales growth. And a lot of the drivers that we saw in Q1, one, core momentum behind the e.l.f. brand, we continue to see strong trends on the brand. So that was fantastic. We also had better fulfillment rates this quarter than we originally expected, which helped us to get to that 50% net sales growth. We also had the impact of stimulus. So if you recall, we talked about in Q4, and we saw that trickle over into Q1, this third round of stimulus was by far the largest that we've seen from an impact standpoint. And then we also had improved trends at Ulta and internationally, especially as we lapped those periods of store closures last year. So that's really Q1 overall.

好的。好吧，安德里亞。很高興聽到你的消息。裡面有很多問題。讓我從第一季度的情況開始。因此，第一季度對我們來說是一個非常棒的季度，淨銷售額增長了 50%。我們在第一季度看到的許多驅動因素，其中一個是 e.l.f 背後的核心動力。品牌，我們繼續看到該品牌的強勁趨勢。所以那太棒了。本季度我們的履行率也比我們最初預期的要好，這幫助我們實現了 50% 的淨銷售額增長。我們也受到了刺激措施的影響。因此，如果您還記得，我們在第四季度談到過，我們看到這種情況逐漸蔓延到第一季度，從影響的角度來看，第三輪刺激是迄今為止我們所見過的最大的刺激。然後，我們在 Ulta 和國際上的趨勢也有所改善，特別是去年我們經歷了商店關閉的時期。所以這確實是第一季度的總體情況。

In terms of top line and the outlook, we really expect those trends to continue on the e.l.f. business. Top line momentum, we continue to see. We are increasing our marketing investment, to your point, and we have seen strong ROI associated with that. So that's also implied in that guidance and as well as pipeline associated with the space gains that we called out. So all of those things are impacting the top line.

就收入和前景而言，我們確實預計這些趨勢將在 e.l.f. 上繼續下去。商業。頂線動力，我們繼續觀察。正如您所說，我們正在增加營銷投資，並且我們已經看到了與之相關的強勁投資回報率。因此，這也暗示在與我們呼籲的空間收益相關的指導方針和管道中。因此，所有這些因素都在影響營收。

From an EBITDA standpoint, we are seeing the margins -- a little bit of compression there. And it's because we are investing behind our marketing and digital. So we took our marketing and digital range up to 15% to 17% and from 14% to 16% previously. And as you mentioned, the cost pressures that we see with ocean costs and in the supply chain, that also is embedded within our guidance as well, as well as costs associated with some of those space gains that we mentioned.

從 EBITDA 的角度來看，我們看到了利潤率——有一點壓縮。這是因為我們正在投資營銷和數字化。因此，我們將營銷和數字化範圍從之前的 14% 提高到 15% 到 17%，從 14% 提高到 16%。正如您所提到的，我們在海洋成本和供應鏈中看到的成本壓力也包含在我們的指導中，以及與我們提到的一些空間收益相關的成本。

And then on your question on pricing, Andrea, this is a brand that does have pricing power. So we successfully executed our largest price increase ever in 2019. We followed that up with another round of more modest price increases more recently in the U.S. but a pretty big price increase internationally that was implemented really in the May time frame. And so we feel good about our ability to price.

關於定價問題，Andrea，這是一個確實具有定價能力的品牌。因此，我們成功執行了 2019 年有史以來最大的提價。隨後，我們最近在美國進行了另一輪較為溫和的價格上漲，但在國際上確實在 5 月份的時間範圍內實施了相當大的價格上漲。因此，我們對自己的定價能力感到滿意。

The reason why we don't want to price right now any further is we see some of the cost headwinds that we're seeing is temporal in nature. The imbalance of containers, we feel, will balance out over time. We saw a good increase in the availability of containers as the quarter progressed. And over time, we would expect those costs to also moderate. So we don't necessarily want to get ahead of us on pricing. But if we saw that some of these costs would be more permanent in nature, then we certainly could use pricing as a lever.

我們現在不想進一步定價的原因是我們看到一些成本阻力本質上是暫時的。我們認為，容器的不平衡會隨著時間的推移而得到平衡。隨著本季度的進展，我們看到集裝箱的可用性大幅增加。隨著時間的推移，我們預計這些成本也會降低。所以我們不一定想在定價上領先於我們。但如果我們看到其中一些成本本質上是永久性的，那麼我們當然可以使用定價作為槓桿。

The next question comes from Steph Wissink with Jefferies.

下一個問題來自 Jefferies 的 Steph Wissink。

This is Grace Menk on for Steph. I wanted to kind of double-click on the Keys Soulcare kind of strength that you're seeing. Could you talk a little bit about the contribution in the period and then how we should think about it as we look out over the fiscal year?

我是格蕾絲·門克（Grace Menk）為斯蒂芬代言。我想雙擊你所看到的 Keys Soulcare 那種力量。您能否談談這一時期的貢獻，然後我們在展望本財年時應該如何看待它？

Sure. So we're not breaking out Keys Soulcare. So we're not breaking out any of our individual brands. But what I can tell you is we're quite pleased with the progress we're making on Keys Soulcare, particularly in the areas of consumer engagement and Alicia's own engagement in the brand. We talked about every time she posts, every time she does something, we see really great consumer response.

當然。所以我們不會破壞Keys Soulcare。所以我們不會打破我們的任何個人品牌。但我可以告訴你的是，我們對 Keys Soulcare 所取得的進展感到非常滿意，特別是在消費者參與度和艾麗西亞本人對該品牌的參與度方面。我們每次都會談論她發的帖子、每次她做的事情，我們都會看到消費者的強烈反響。

In addition, we're really pleased with the execution we've had amongst our retail partners, the total store takeover we had at Ulta Beauty. As the brand has started rolling out in Douglas across 8 countries in Europe, that rollout was delayed somewhat by some of the COVID restrictions in Europe. But we're feeling good now that it's starting to roll out. And then our latest execution inherits with H beauty. The brand is really showing up really well and really proud of the execution.

此外，我們對零售合作夥伴的執行力以及 Ulta Beauty 的整體商店接管感到非常滿意。該品牌已開始在歐洲 8 個國家的道格拉斯推出，但由於歐洲的一些新冠疫情限制，該品牌的推出有所延遲。但現在我們感覺很好，因為它已經開始推出。然後我們最新的執行繼承了 H 美。該品牌的表現確實非常出色，並且對其執行力感到非常自豪。

So I would say the last thing on Keys Soulcare, the way to think about it is we're building a brand for the long term here. So this quarter was our first expansion in an adjacent category with the launch of our body care line, the first 3 items in our body care line, that very much tie into the brand ethos on self-love, rituals, body positivity, very much builds on what we started with Keys Soulcare. And we have a great pipeline really for the next few years across multiple other categories. So quite encouraged by what we're seeing right now and look forward to updating you more on that as we continue to make progress.

所以我想說關於 Keys Soulcare 的最後一件事，思考的方式是我們在這裡建立一個長期品牌。因此，本季度是我們在相鄰類別中的首次擴張，推出了我們的身體護理系列，這是我們身體護理系列的前 3 個產品，這與自愛、儀式、身體積極性等品牌精神密切相關建立在我們從Keys Soulcare 開始的基礎上。在接下來的幾年裡，我們在多個其他類別中確實擁有一個很棒的管道。我們對現在所看到的情況感到非常鼓舞，並期待隨著我們不斷取得進展向您提供更多最新信息。

That's helpful. And then just one follow-up on inventory levels. Are you seeing that you've kind of been using inventory that was maybe earmarked for later in the year? And is there a way to kind of -- you've mentioned some of the measures that you're taking. Can you like use domestic suppliers or explore other alternative approaches? Just a little bit more detail there would be great.

這很有幫助。然後是庫存水平的一項後續行動。您是否發現您一直在使用可能在今年晚些時候使用的庫存？有沒有辦法——你已經提到了你正在採取的一些措施。您是否願意使用國內供應商或探索其他替代方法？只要再多一點細節就太好了。

Sure. So overall, we feel great about kind of the outlook on inventory and our supply chain overall. I would say that Q1 inventory ended a little bit lower than we would have expected given that we had a 50% net sales growth quarter. And so we talked about the build into the September ending quarter seeing inventory at $75 million to $80 million. And really, we feel that is what we -- where we want to be to support our business, reflective of the longer lead times. We are seeing -- some of the higher transportation costs we're seeing. And then like I said, the continued business momentum and the addition of our brands of Keys and W3LL embedded into that number. So to your question, yes, we are seeing some longer lead times and starting to rebuild our inventory position as we get into the September quarter.

當然。總的來說，我們對庫存和整個供應鏈的前景感到滿意。我想說，鑑於我們季度淨銷售額增長 50%，第一季度庫存最終略低於我們的預期。因此，我們談到了 9 月底季度的庫存為 7500 萬至 8000 萬美元。事實上，我們覺得這就是我們想要支持我們業務的地方，反映了更長的交貨時間。我們看到——我們看到一些更高的運輸成本。然後就像我說的那樣，持續的業務勢頭以及我們的 Keys 和 W3LL 品牌的加入都融入到了這個數字中。所以對於你的問題，是的，我們看到交貨時間更長，並在進入九月季度時開始重建我們的庫存狀況。

And then for the second part of your question on the supply chain, we feel great about our supply chain in terms of the combination of cost, quality and speed that we're able to deliver. We see this primarily as a transportation issue. We have plenty of capacity from a manufacturing standpoint and our ability to really flex to meet the business needs. So as the transportation situation gets better, I think we'll be in great shape as we go forward.

對於您關於供應鏈的問題的第二部分，我們對我們的供應鏈在成本、質量和交付速度方面感到非常滿意。我們認為這主要是一個交通問題。從製造的角度來看，我們擁有充足的產能，並且有能力真正靈活地滿足業務需求。因此，隨著交通狀況的好轉，我認為我們將處於良好的狀態。

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。

Two questions. Just first on the transportation issues. I guess it really didn't seem to impact fiscal Q1 all that much, given you were up 50% year-over-year. And as you mentioned, the fill rates were healthy in the 95% range. So I just wanted to understand is, are things getting worse potentially post the June quarter? Do you think things are better? In general, the tone sounded more constructive. But just given the growth we saw year-over-year in Q1, it didn't seem to be a big issue for you guys. So I just wanted to get a little bit of update in terms of what we should expect going forward on that front.

兩個問題。首先是交通問題。我想這似乎並沒有對第一財季產生太大影響，因為同比增長了 50%。正如您所提到的，填充率在 95% 的範圍內保持健康。所以我只是想了解的是，六月季度後情況是否會變得更糟？你認為事情變得更好了嗎？總的來說，語氣聽起來更有建設性。但考慮到我們在第一季度看到的同比增長，這對你們來說似乎並不是一個大問題。所以我只是想了解一些關於我們在這方面的預期進展的最新信息。

Yes. Dara, what I'd say is I'm really proud of the way the team navigated the container imbalance. So the stat we use is, we're able to maintain 95% customer in-stock levels. Our fulfillment rates were lower than that, but our team was able to make sure through our penetration and our customer supply chains that they had the right inventory by item level to be able to maintain strong in-stocks. We have seen more container availability. So we hope to get those fulfillment rates up even further. And there'll be a temporary hit to our customer in-stocks as we work through that. But overall, pretty confident in terms of our ability to meet the consumer demand as we navigate through this situation.

是的。Dara，我想說的是，我對團隊解決容器不平衡問題的方式感到非常自豪。所以我們使用的統計數據是，我們能夠維持 95% 的客戶庫存水平。我們的履行率低於這個數字，但我們的團隊能夠通過我們的滲透和客戶供應鏈確保他們按商品級別擁有正確的庫存，從而能夠保持強勁的庫存。我們看到更多的集裝箱可用。因此，我們希望進一步提高這些履行率。在我們解決這個問題的過程中，我們的客戶庫存將會受到暫時的打擊。但總的來說，在我們應對這種情況時，我們對滿足消費者需求的能力非常有信心。

Okay. And then just to follow up on Andrea's question. The balance of the year revenue guidance is -- it's only about 3% to 4% at your midpoint. I guess if you add back the holiday program, it'd be more like mid-single digits. But obviously, it's a pretty big slowdown from what we saw in fiscal Q1 as well as fiscal Q4 and even last year's full fiscal year during COVID.

好的。然後跟進安德里亞的問題。今年餘下的收入指引是——按中點計算，僅為 3% 至 4% 左右。我想如果你加上假期計劃，它會更像個位數。但顯然，與我們在第一財季、第四財季甚至去年新冠疫情期間的整個財年所看到的情況相比，這是一個相當大的放緩。

So you generally sounded pretty positive about most of the underlying dynamics in the business. And obviously, transportation is a limiting factor. But it doesn't sound like it's prohibitive at this point. So I'm just trying to better understand that revenue guidance in the balance of the year and if there's anything significant besides the holiday program that would really limit revenue growth a lot more than what you've already seen recently.

因此，您對業務中的大多數潛在動態總體上聽起來相當積極。顯然，交通是一個限制因素。但目前看來這並不令人望而卻步。因此，我只是想更好地了解今年剩餘時間的收入指導，以及除了假期計劃之外是否還有其他重大因素會真正限制收入增長，其程度比您最近看到的要大得多。

No. So the holiday program is the key factor in that. We called out $6 million related to that, that we are pulling out of our forecast as well as we do, as I mentioned earlier, stimulus, in the base as well as we get into the back half of the year, Q4, that we're cycling through. So outside of that, we feel confident of our core business momentum and expect to see that growth continue for the balance of the year.

不。因此，假期計劃是其中的關鍵因素。我們為此籌集了 600 萬美元，我們正在取消我們的預測，正如我之前提到的，我們在基礎上進行刺激，並且我們進入今年下半年，即第四季度，我們正在騎自行車經過。因此，除此之外，我們對我們的核心業務勢頭充滿信心，並預計今年剩餘時間將繼續增長。

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 talked about the impact on sales of not doing the holiday program. What would be the effect on mix and gross margin? Are the gift sets actually a little bit lower gross margin?

所以你談到了不進行假期計劃對銷售的影響。對產品組合和毛利率有何影響？禮品套裝的毛利率實際上會低一點嗎？

So we haven't given specifics on the holiday program and the gross margin impact. But I would say just from a mix standpoint, deluxe kits versus -- is that what you're asking, deluxe kits versus our traditional holiday program? I would say there's not a major difference in that.

因此，我們沒有給出有關假期計劃和毛利率影響的具體信息。但我想說，僅從混合的角度來看，豪華套件與——這就是您所問的，豪華套件與我們的傳統假期計劃？我想說這沒有什麼大的區別。

Yes. Just adding a little bit more color to that, Linda, the decision of foregoing holiday, we like our annual holiday program. It's a great way of engaging consumers, but holiday kits have a very high cube. So it takes about 4 containers to get the same amount of product as we can get on 1 container. And so given the strength in our consumer demand really prioritizing our core SKUs, deluxe kits help us make up for part of that gap. But in addition, we will have pretty strong consumer engagement efforts as we've had and stepped up really throughout each of the quarters. So we feel we can navigate through it. It will be a temporary piece and definitely feel good about the decision to prioritize our base business.

是的。只是添加一點點色彩，琳達，前述假期的決定，我們喜歡我們的年度假期計劃。這是吸引消費者的好方法，但假日套裝的體積非常高。因此，大約需要 4 個容器才能獲得與 1 個容器相同數量的產品。因此，鑑於我們的消費者需求確實優先考慮我們的核心 SKU，豪華套件可以幫助我們彌補部分差距。但除此之外，我們還將像每個季度所做的那樣，加大消費者參與力度。所以我們覺得我們可以穿越它。這將是一個臨時的部分，並且肯定對優先考慮我們的基礎業務的決定感到滿意。

And then -- so it's great to hear you talk about getting some additional shelf space in the international markets. So how does that -- as you grow internationally, how does that affect kind of your margin over time as you get bigger internationally? And how does it expect -- affect your need for working capital?

然後，很高興聽到您談論在國際市場上獲得一些額外的貨架空間。那麼，隨著您在國際上的發展，隨著時間的推移，隨著您在國際上的規模不斷擴大，這會如何影響您的利潤率呢？它會如何影響您對營運資金的需求？

So on the margin side of things, and I think we've talked about this before, we really look at our business from a margin agnostic standpoint. So whether that volume is coming from the U.S. or internationally, it's relatively in line with one another. From a cost of capital and a cash flow perspective, there's also not much outside of inventories that we have that's required behind that. And it's very similar to our U.S. business in terms of shelf space expansion and fixturing and things like that. It's just normal course of what we see even here in our domestic business.

因此，在利潤方面，我想我們之前已經討論過這一點，我們確實從利潤不可知的角度來看待我們的業務。因此，無論這一數量是來自美國還是國際，它們都相對一致。從資本成本和現金流的角度來看，除了庫存之外，我們也沒有太多需要的東西。在貨架空間擴展和固定等方面，這與我們的美國業務非常相似。即使在我們的國內業務中，這也是我們所看到的正常過程。

And part of the reason why, Linda, is our approach a couple of years ago where we shifted from distributors to direct selling to key headquarter sales. It's a very efficient model that our team can cover each of these core accounts, as you've seen the progress we've made at Superdrug, Boots, now at Douglas. We feel really good of our ability to be able to service them in an efficient way and quite similar to the way we service Ulta Beauty, Target, Walmart and others.

琳達，部分原因是我們幾年前的做法，即我們從分銷商轉向直銷，再轉向主要的總部銷售。這是一個非常有效的模型，我們的團隊可以覆蓋每個核心客戶，正如您所看到的，我們在 Superdrug、Boots 以及現在在 Douglas 所取得的進展。我們對能夠以高效的方式為他們提供服務感到非常滿意，這與我們為 Ulta Beauty、Target、沃爾瑪和其他公司提供服務的方式非常相似。

Okay. And just finally, again, great news about your expanded shelf space in the U.S. What are some of the challenges as you continue to add more and more space at some of the retailers like Ulta and Walmart in terms of how do you maintain the high productivity of the shelf space as it grows over time?

好的。最後，再次，關於您在美國擴大貨架空間的好消息。當您繼續在 Ulta 和沃爾瑪等一些零售商處增加越來越多的空間時，在如何保持高生產率方面存在哪些挑戰貨架空間隨著時間的推移而增長？

Yes. That's inherent in our model. Our model is based on the data that we get off of our e-commerce site. Most of our innovation goes online first. We get really great data not only in sales but also customer reviews, level of engagement behind those. So we have a good model really stemming back all the way back to 17 years ago starting as a digital business. We were able to take those insights, work with our customers and really proactively decide which items we're going to delete and replace them with, and that productivity model has served us well over the years. And I would say we have tremendous space opportunity really at every single retailer we deal with.

是的。這是我們模型固有的。我們的模型基於我們從電子商務網站獲得的數據。我們的大部分創新首先在線上進行。我們不僅獲得了銷售方面的重要數據，還獲得了客戶評論以及這些評論背後的參與度。因此，我們擁有一個很好的模式，可以追溯到 17 年前，我們剛開始從事數字業務。我們能夠利用這些見解，與客戶合作，真正主動地決定要刪除哪些項目並用它們替換它們，而且這種生產力模型多年來一直為我們提供了良好的服務。我想說的是，我們合作的每一家零售商都擁有巨大的空間機會。

So while I'm pleased with the space gains we have, we have a lot further to go. And I think the one benefit of stepping into space sequentially is we're able to optimize that space better. There were years in the past where we picked up massive amounts of space at a particular customer in a given year, and we found it took us a couple of cycles to really grow into that space. I think the types of increments we're getting now in space, it's quite manageable given the extent of our innovation and our pipeline of product, probably the best example being if you go into some Target stores, you will have 16 to 20 foot sets in some of their doors. And we do extremely well with those. So highly confident of our ability to continue to optimize the space that we continue to gain.

因此，雖然我對我們所獲得的空間收益感到滿意，但我們還有很長的路要走。我認為順序進入太空的一個好處是我們能夠更好地優化該空間。在過去的幾年裡，我們在特定的一年里為特定客戶獲得了大量的空間，我們發現我們花了幾個週期才能真正發展到這個空間。我認為我們現在在太空中獲得的增量類型，考慮到我們的創新程度和產品線，這是相當容易管理的，可能最好的例子是，如果你走進一些Target 商店，你將擁有16 到20 英尺的空間在他們的一些門上。我們在這些方面做得非常好。我們對繼續優化我們不斷獲得的空間的能力充滿信心。

The next question comes from Olivia Tong with Raymond James.

下一個問題來自 Olivia Tong 和 Raymond James。

First, congrats on the quarter. I wanted to talk a little bit about sort of the key drivers of that dramatic top line acceleration. Was it particular retailers? Because it sounded like all brands were better than you expected. Was it brick-and-mortar versus online, particular subcategories? Just a little bit more detail there would be great.

首先，祝賀本季度。我想談談營收急劇增長的關鍵驅動因素。是特定的零售商嗎？因為聽起來所有品牌都比你預期的要好。是實體店還是在線店，特定的子類別？只要再多一點細節就太好了。

And then just thinking about the guide. And I guess I understand the supply chain challenges. I understand foregoing some of the holiday plans. But you're also seeing, looks like, some very nice retail space expansion wins that should help you later in the year. So just trying to understand sort of the puts and takes there for the rest of the year and why you sort of net out where you do.

然後只考慮指南。我想我了解供應鏈的挑戰。我了解上述一些假期計劃。但你也看到，看起來，一些非常好的零售空間擴張勝利應該會在今年晚些時候對你有所幫助。因此，只是想了解今年剩餘時間裡的看跌期權和看跌期權，以及為什麼你會在哪裡進行淨值計算。

Sure. Olivia, thanks for joining us. So I would say our Q1 net sales growth drivers, again, are really driven by the core momentum that we're seeing behind the e.l.f. Cosmetics brand. We had better fulfillment rates than we initially expected. We also had the impact -- trickle-over impact of stimulus into Q1. And then we also saw better results at Ulta and internationally, especially as we cycle those store closures in the base. Also from -- a shift from brick-and-mortar over to -- e-commerce over to brick-and-mortar. As we have seen the U.S. reopen, we have seen that shift as we expected, consumers going back into the stores. But we're still very pleased with our e-commerce performance, up triple digits on a 2-year basis.

當然。奧利維亞，感謝您加入我們。因此，我想說，我們第一季度淨銷售額增長的驅動力實際上是由我們在 e.l.f. 背後看到的核心動力推動的。化妝品品牌。我們的履行率比我們最初預期的要好。我們還產生了影響——刺激措施對第一季度的滲透影響。然後我們在 Ulta 和國際上也看到了更好的結果，特別是當我們循環關閉基地的商店時。還有從實體店到電子商務到實體店的轉變。正如我們看到美國重新開放一樣，我們也看到了這種轉變，正如我們所預期的那樣，消費者回到了商店。但我們仍然對我們的電子商務業績感到非常滿意，在兩年的基礎上增長了三位數。

To answer your question on balance-of-year guidance, the space expansion, so we did mention that we do have some pipeline associated with the space expansion in there. But since these are spring 2022, you will really see the impact of that as we get into our next fiscal year just really help the pipeline this year.

為了回答您關於年度平衡指導和空間擴張的問題，我們確實提到我們確實有一些與空間擴張相關的管道。但由於現在是 2022 年春季，當我們進入下一個財年時，您將真正看到其影響，這對今年的渠道確實有幫助。

Right. Right. I'm surprised the pipeline isn't that dramatic, too. So maybe you can add a little bit there. But then my other question is around the marketing spend and the decision to increase that by 100 basis points more than you had originally anticipated. So first, trying to understand why you decided to do that. I mean, especially after a 50% growth quarter, is there a specific area you really want to push? Or obviously, more marketing is great, but just kind of understanding the genesis of the decision to increase that.

正確的。正確的。我很驚訝管道也沒有那麼引人注目。所以也許你可以在那裡添加一點。但我的另一個問題是關於營銷支出以及將其比您最初預期增加 100 個基點的決定。因此，首先，嘗試了解您決定這樣做的原因。我的意思是，特別是在季度增長 50% 之後，您是否真正想要推動某個特定領域？或者顯然，更多的營銷是偉大的，但只是了解增加營銷的決定的起源。

And then as I sort of just do a quick back-of-the-envelope math, it looks like your EPS guide or your EBITDA margin guide would suggest about like 100 basis points of incremental margin pressure for the rest of the year. So obviously, cost pressures are much higher than that. So if you're increasing your marketing by 100 basis points, cost pressures are significantly higher versus your going-in expectations. What's the offset there that I'm not quite sure?

然後，當我快速進行粗略計算時，看起來你們的 EPS 指南或 EBITDA 利潤率指南會建議今年剩餘時間的增量利潤壓力約為 100 個基點。顯然，成本壓力遠高於此。因此，如果您將營銷力度提高 100 個基點，則成本壓力會明顯高於您的投入預期。我不太確定的偏移量是多少？

Olivia, so I'll take the first part. I'll have Mandy answer the second. So on marketing, we're just seeing real momentum in the business. And that's been driven by our marketing investments, and we feel great about that. In fact, we recently got our annual Nielsen marketing mix results, showed strong ROI behind our marketing. So we're leaning into our strengths. We see plenty of opportunities for us to continue to drive consumer engagement and fuel the momentum we have.

奧利維亞，我來參加第一部分。我會讓曼迪回答第二個問題。因此，在營銷方面，我們只是看到了業務的真正動力。這是由我們的營銷投資推動的，我們對此感覺很好。事實上，我們最近獲得了年度尼爾森營銷組合結果，顯示了我們營銷背後的強勁投資回報率。所以我們正在發揮我們的優勢。我們看到了很多機會來繼續推動消費者參與並推動我們現有的勢頭。

And so that was a real core driver between that. We did see more opportunities than frankly we can invest in. And so we want to make sure that we keep those levels strong. And in the first quarter, our marketing and digital investments were about 16% of net sales. Our guidance for the year is 15% to 17%. So we're comfortable within that range in terms of our ability to continue to drive very strong consumer engagement.

所以這是一個真正的核心驅動因素。坦白說，我們確實看到了比我們可以投資的更多的機會。因此，我們希望確保保持這些水平。第一季度，我們的營銷和數字投資約占淨銷售額的 16%。我們今年的指導是 15% 到 17%。因此，就我們繼續推動非常強大的消費者參與的能力而言，我們在這個範圍內感到滿意。

Yes. And then on the delta, Olivia, the nonmarketing SG&A is really helping to offset the gross margin headwind that we're seeing as well as a portion of the additional marketing investment that we're putting in. And really, that's driven by top line momentum driven out of Q1 and then also us taking a sharper look at expenses outside of marketing as we go through. So that's also helping on the year.

是的。然後，在三角洲地區，奧利維亞，非營銷銷售、銷售及管理費用確實有助於抵消我們所看到的毛利率不利因素以及我們投入的部分額外營銷投資。事實上，這是由第一季度的營收勢頭推動的，然後我們在經歷過程中更仔細地審視了營銷之外的費用。所以這對今年也有幫助。

The next question comes from Oliver Chen with Cowen.

下一個問題來自 Oliver Chen 和 Cowen。

On the skin care category, what are you focused on in terms of innovation and what you're seeing in the marketplace as we look forward and consumer preferences continue to shift rapidly? Also on -- regarding marketing, where will the incremental dollars go in terms of what mediums? And as you think about the incremental marketing spend, where do you see the most opportunity in terms of KPIs from consumers as you engage in additional marketing spending?

在護膚品類別上，您在創新方面關注的重點是什麼？隨著我們的展望和消費者偏好的持續快速變化，您在市場上看到了什麼？另外，關於營銷，增量資金將通過哪些媒介流向何處？當您考慮增量營銷支出時，當您進行額外的營銷支出時，您認為消費者的 KPI 方面的最大機會在哪裡？

Oliver, so on skin care, I would say we have a very broad focus on skin care. And it really is across our brand portfolio. So on e.l.f. skin, we just recently launched our Holy Hydration! cream with SPF 30. It's quickly become our top-selling skincare SKU. So continue to hit the key segments within skin care under the same thesis of e.l.f., the best of beauty made accessible. So you'll continue to see really high-quality products at these extraordinary values on health, and we have a long way to go on that pipeline.

奧利弗，說到皮膚護理，我想說我們對皮膚護理有非常廣泛的關注。這確實存在於我們的品牌組合中。所以關於 e.l.f.皮膚，我們最近剛剛推出了Holy Hydration！SPF 30 的霜。它很快成為我們最暢銷的護膚品 SKU。因此，在 e.l.f. 的同一主題下，繼續攻克皮膚護理的關鍵領域，讓最好的美容觸手可及。因此，您將繼續看到具有這些非凡健康價值的真正高質量產品，而我們在這條管道上還有很長的路要走。

Keys Soulcare started with a skin care focus. So the clean skin care products within Keys Soulcare, we feel great about. The average product ratings of our initial 9 products are 4.9 out of 5 stars on keyssoulcare.com, and we have a rich pipeline behind that. We also see opportunity on W3LL PEOPLE longer term in terms of skin care. So we see opportunity across all 3 of our brands. And since each brand is distinct and complementary in nature, you'll see each one take a little bit of a different focus on skin care. And so we feel really good about what we're doing on skin and continue to see a lot of momentum there.

Keys Soulcare 最初專注於皮膚護理。所以我們對 Keys Soulcare 的清潔護膚產品感覺很好。我們最初的 9 個產品在 keysoulcare.com 上的平均產品評級為 4.9 星（滿分 5 星），而我們背後有豐富的渠道。我們還看到 W3LL PEOPLE 在皮膚護理方面的長期機會。因此，我們在所有三個品牌中都看到了機遇。由於每個品牌本質上都是獨特且互補的，因此您會發現每個品牌對皮膚護理的關注點有所不同。因此，我們對我們在皮膚上所做的事情感到非常滿意，並且繼續看到了很大的動力。

And then on your second question on in terms of marketing, where the incremental dollars will go, I would say it's a combination of highly proven ROI vehicles like many of our campaign vehicles in terms of our media and awareness driving where we've seen great results as well as continuing to lead the way and test and learn on new platforms. We're incredibly pleased, obviously, with the work that we've done on TikTok over the years. Our TikTok Gamers Got Talent hashtag challenge, I think, raised with now over 17 billion views. Our foray into gaming has proven to be really great. Our livestream on Twitch, the level of engagement we're getting there, the attribution we're getting there is really actually also quite strong. And then new platforms, as you heard us talk about on this call, so we think there's an opportunity.

然後，關於營銷方面的第二個問題，增量資金將流向何處，我想說，這是經過高度驗證的投資回報率工具的組合，就像我們的許多活動工具一樣，在我們的媒體和意識驅動方面，我們已經看到了巨大的進步結果以及繼續引領潮流並在新平台上進行測試和學習。顯然，我們對多年來在 TikTok 上所做的工作感到非常滿意。我認為，我們的 TikTok Gamers Got Talent 主題標籤挑戰現已獲得超過 170 億次觀看。事實證明，我們對遊戲的嘗試非常出色。我們在 Twitch 上的直播、我們所達到的參與度、我們所達到的歸因實際上也相當強大。然後是新平台，正如您在這次電話會議上聽到我們談論的那樣，所以我們認為這是一個機會。

So the way I think about the marketing dollars over time is a combination of well-proven vehicles where we have a very strong ROI data on as well as continuing to disrupt the category and really get consumer engagement, including many of the partnerships we do and the collaborations we do.

因此，隨著時間的推移，我對營銷資金的看法是結合經過充分驗證的工具，我們擁有非常強大的投資回報率數據，並繼續顛覆該類別並真正獲得消費者參與，包括我們所做的許多合作夥伴關係和我們所做的合作。

And a final question. There's been a lot of ingredients innovation and R&D in the industry at large. What are your thoughts on how that will apply to your platform and also maintaining R&D innovation at e.l.f. as well?

最後一個問題。整個行業進行了大量的成分創新和研發。您對於如何將其應用到您的平台以及如何保持 e.l.f. 的研發創新有何想法？還有？

Yes. So innovation has long been a key strength of ours. And I would say our biggest focus on innovation beyond having great new products that consumers love is our continued journey on Clean Beauty. And so there's a very strong ingredient focus on that. If you think of W3LL PEOPLE, a pioneering Clean Beauty brand with plant-powered beauty that works, that really is at the gold standard.

是的。因此，創新長期以來一直是我們的關鍵優勢。我想說，除了擁有消費者喜愛的優質新產品之外，我們對創新的最大關注是我們對清潔美容的持續探索。因此，我們非常重視這一點。如果您想到 W3LL PEOPLE，這是一個開創性的 Clean Beauty 品牌，具有有效的植物美容功效，那確實符合黃金標準。

And acquiring W3LL PEOPLE brought a lot of capability into the company in terms of our clean journey. We had reformulated every one of those products since we did our tech transfer onto our operating platform, realizing even better product performance at significant COGS savings and, in turn, getting learnings that really helped us launch Keys Soulcare through one of the co-founders of W3LL PEOPLE, Dr. Renee Snyder, working with our innovation team of really high standard in skin care and has a very strong ingredient focus as does W3LL PEOPLE.

收購 W3LL PEOPLE 為公司在清潔之旅方面帶來了很多能力。自從我們將技術轉移到我們的操作平台上以來，我們重新制定了每一種產品的配方，在顯著節省COGS 的情況下實現了更好的產品性能，反過來，我們也通過一位聯合創始人獲得了真正幫助我們推出Keys Soulcare 的經驗教訓。 W3LL PEOPLE 的 Renee Snyder 博士與我們在皮膚護理方面具有真正高標準的創新團隊合作，並且與 W3LL PEOPLE 一樣非常注重成分。

And then even e.l.f., we're making great progress on e.l.f. on clean. If you take a look at our formulations, there's over 1,600 ingredients we do not formulate with and our continued progress in clean. So that's really one of the primary focus areas beyond having really great products is increasingly, consumers care about what the ingredients are in their products. And I feel great about the progress we've made there.

然後甚至是 e.l.f.，我們在 e.l.f. 方面也取得了很大的進展。就乾淨了。如果您看一下我們的配方，就會發現有 1,600 多種成分不是我們配製的，而且我們在清潔方面不斷取得進步。因此，除了擁有真正出色的產品之外，這確實是主要關注領域之一，消費者越來越關心其產品中的成分。我對我們在那裡取得的進展感到非常高興。

The next question comes from Mark Astrachan with Stifel.

下一個問題來自 Stifel 的 Mark Astrachan。

Two questions. Just first, if you could quantify any sort of benefit that you saw from the stimulus this go-round in terms of just impact to sales? Any sort of direction would be helpful there.

兩個問題。首先，您是否可以量化本輪刺激措施對銷售的影響？任何類型的方向都會有幫助。

And then secondly, just a series of broader questions related to skin care, a relatively small percentage of the portfolio today. Anything you could sort of frame as to how it can progress in terms of the mix on a go-forward basis. Could you also talk a bit about where you're sourcing consumers? Are they new to skin care? Are you sourcing share from other brands? Is it mass, masstige?

其次，只是一系列與皮膚護理相關的更廣泛的問題，在今天的投資組合中所佔的比例相對較小。任何你能想到的關於它如何在未來的基礎上在混合方面取得進展的框架。您能否也談談您在哪裡尋找消費者？他們是護膚新手嗎？您是否從其他品牌獲取份額？是大眾、大眾嗎？

And then also, just any sort of seasonality to the business that you've observed so far. And then just 2 other pieces, shelf space, in terms of what you have today relative to the number of skin care SKUs. So presumably, that would expand as you add more incremental spaces you referenced? And then also, could you just remind on the margin impact for skin care versus the legacy portfolio?

然後，還有您迄今為止觀察到的業務的任何季節性。然後還有另外 2 個部分，即貨架空間，就您今天擁有的相對於護膚品 SKU 的數量而言。所以想必，當您添加更多引用的增量空間時，它會擴展？另外，您能否提醒一下護膚品相對於傳統產品組合的利潤影響？

Right, Mark. Well, I'll take your first question on quantifying the impact of stimulus. Like I said, this last round of stimulus is by far the largest impacts that we've seen. We've not quantified that specifically on a building block in our net sales other than to say it did have an impact to our net sales in Q4 as well as what we saw here in Q1.

對，馬克。好吧，我將回答你的第一個問題，即量化刺激的影響。正如我所說，最後一輪刺激措施是迄今為止我們所見過的最大影響。我們沒有具體量化我們淨銷售額的一個組成部分，只是說它確實對我們第四季度的淨銷售額以及我們在第一季度看到的產生了影響。

Yes. And on your questions on skin care. I think one of the ways I like framing it is if you look at skin care overall, it's less than 10% of our total sales. Yet online, both elfcosmetics.com and Amazon, it's 25% of our sales. And the big delta there primarily relates to the level of assortment we have in skin care. So I feel we have a great pipeline in skin care, great items. And so as we continue -- as you said, as we continue to pick up more space, our strategy is to put more of our skin care in because we see a tremendous opportunity to continue to drive that percentage up over time.

是的。以及關於皮膚護理的問題。我認為我喜歡的描述方式之一是，如果你從整體上看護膚品，它只占我們總銷售額的不到 10%。然而，在 elfcosmetics.com 和 Amazon 上，它占我們銷售額的 25%。那裡的大三角洲主要與我們在皮膚護理方面的品種水平有關。所以我覺得我們在護膚品方面有很棒的產品線，很棒的產品。因此，正如您所說，隨著我們繼續擴大空間，我們的策略是投入更多的皮膚護理產品，因為我們看到了隨著時間的推移繼續推動這一比例上升的巨大機會。

From a margin standpoint, it's not that different from a margin standpoint from our overall cosmetics line. The price points are higher. So just on e.l.f. alone, if you think about our average unit retails on cosmetics, they're about $5. On skin care, they're around $9. And then, of course, Keys Soulcare is significantly higher than that in the $20 to $30 -- $20 to $40 range. So we do see, I think from a margin standpoint, not that much of a difference mainly because of our strategy of making sure that we're having the highest quality skin care accessible is one of the ways that we really win, but definitely generates more gross profit dollars.

從利潤的角度來看，這與我們整個化妝品系列的利潤角度沒有什麼不同。價格點更高。所以就用 e.l.f.僅就化妝品而言，如果您考慮一下我們的平均單位零售價，大約為 5 美元。護膚品的價格約為 9 美元。當然，Keys Soulcare 的價格明顯高於 20 至 30 美元——20 至 40 美元範圍內的價格。所以我們確實看到，我認為從利潤的角度來看，差異並不大，主要是因為我們的戰略是確保我們擁有最高質量的護膚品，這是我們真正獲勝的方式之一，但肯定會產生更多毛利潤美元。

The 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。

So I had 2 questions on gross margins. I was first curious if you can provide any more specificity in terms of how you think about gross margins for the full year. And I wanted to get a sense of if maybe Q1 is a low point. And then as we look out, I know it's still early, towards next year, would you expect to recover any of the gross margin decline going forward in the future years?

所以我有兩個關於毛利率的問題。我首先想知道您是否可以更具體地說明您對全年毛利率的看法。我想了解第一季度是否是一個低點。然後，當我們展望未來時，我知道現在還為時過早，到明年，您是否期望在未來幾年恢復毛利率的下降？

Rupesh, so I will answer your question on gross margin. So for Q1, we saw gross margin down about 340 basis points year-over-year. So as we look out on the balance of the year, we expect gross margins not to be down as much as what we saw in Q1. So improving as we get throughout the year, and we kind of find some stability here from some of these transportation costs that we're seeing.

Rupesh，我來回答你關於毛利率的問題。因此，第一季度的毛利率同比下降了約 340 個基點。因此，當我們展望今年剩餘時間時，我們預計毛利率不會像第一季度那樣下降那麼多。隨著我們全年的進步，我們從我們所看到的一些運輸成本中發現了一些穩定性。

In terms of recovery, we do see this as a transitory issue. The ocean costs, the container imbalance, we expect all of that to balance out over time. And so do expect to get some recovery in gross margin as we go through. Timing of that, obviously, we are not talking about fiscal '23 just yet. So have to wait and see there.

就恢復而言，我們確實認為這是一個暫時的問題。海運成本、集裝箱不平衡，我們預計所有這些都會隨著時間的推移而平衡。因此，隨著我們的經歷，毛利率預計會有所回升。顯然，我們現在還不是在談論 23 財年的時機。所以還得在那裡等著看。

Yes. And just to add to that, Rupesh, I think we're highly confident of our ability to drive strong gross margins over time. If you just think over the last couple of years, the amount of costs we're carrying between the 25% China tariffs, the transportation costs we talked about, FX turning against us, it's a pretty high level of cost. And our ability to continue to deliver even in this year's guidance 9% to 11% EBITDA growth, we feel really great about that. So I think longer term, we're quite bullish in terms of our ability to manage kind of the cost environment around us and still deliver strong profit progress.

是的。除此之外，Rupesh，我認為我們對隨著時間的推移推動強勁毛利率的能力充滿信心。如果你想想過去幾年，我們在 25% 的中國關稅、我們談到的運輸成本、外匯對我們不利的情況下承受的成本，這是一個相當高的成本水平。即使在今年的指導中，我們仍能繼續實現 9% 至 11% 的 EBITDA 增長，我們對此感到非常高興。因此，我認為從長遠來看，我們對管理周圍成本環境並仍然實現強勁利潤增長的能力非常樂觀。

(Operator Instructions) The next question comes again from Erinn Murphy with Piper Sandler.

（操作員說明）下一個問題再次來自 Erinn Murphy 和 Piper Sandler。

I had a couple of follow-ups still. One was just on your approach, Tarang, I guess, with the team on collaborations. You've done such a great job with the e.l.f. brand over the last few years. How are you viewing product collaborations for both W3LL PEOPLE and Keys Soulcare? Is there an opportunity there?

我還有一些後續行動。我猜，塔朗，其中之一就是你與團隊的合作方式。你在 e.l.f. 方面做得非常出色。近幾年的品牌。您如何看待 W3LL PEOPLE 和 Keys Soulcare 的產品合作？那裡有機會嗎？

And then just secondly on Keys Soulcare. With the Ulta/Target partnership, I believe Keys is the one brand you aren't currently selling at Target. When should we expect or do you -- should we expect that to be on the brand list over time?

其次是 Keys Soulcare。通過 Ulta/Target 合作夥伴關係，我相信 Keys 是您目前不在 Target 銷售的品牌之一。我們應該什麼時候期待或者您——我們應該期待它隨著時間的推移出現在品牌列表中？

Sure. So Erinn, the team has done a remarkable job in terms of these collaborations and doing things in an expected way. If I go back to the e.l.f. x Chipotle collaboration, even the most recent one we did with our Electric Mood collection, partnering with 3 global music artists, you're going to continue to see more. I think tomorrow, you're going to see our launch of Big Mood, which builds on the success we've been having in the eye category. We've always had strength in brow. We feel great about lash it loud, our mascara before Big Mood. And I feel it's our best mascara yet that we've launched, and you'll hear a collaboration we're doing on that tomorrow. And so you'll continue to see a good stream.

當然。因此，Erinn，該團隊在這些合作和以預期方式做事方面做得非常出色。如果我回到 e.l.f.x Chipotle 合作，甚至是我們最近與 3 位全球音樂藝術家合作的 Electric Mood 系列合作，您將繼續看到更多。我想明天，您將看到我們推出 Big Mood，它建立在我們在眼部產品領域取得成功的基礎上。我們的眉毛一直都很有力量。在大心情之前使用我們的睫毛膏，我們感覺很棒。我覺得這是我們推出的最好的睫毛膏，明天你就會聽到我們在這方面的合作。因此您將繼續看到精彩的直播。

And there's absolutely possibilities on both W3LL PEOPLE as well as Keys Soulcare. And in fact, on Keys Soulcare, the way that brand has been built is through strong collaboration. If we think of our lightworkers, all of the content that we're putting out, the different voices that you're hearing from Keys Soulcare, there's an entire universe of like-minded people that we're going to continue to partner with to bring that message out. And then W3LL PEOPLE, similarly, we feel there's lots of potential. We think W3LL PEOPLE is a real gem in terms of not only its heritage as a real pioneer in Clean Beauty but this broader view of clean beauty and wellness. We think there are good partnerships there as well. So you stay tuned. You'll continue to see a lot more with us there.

W3LL PEOPLE 和 Keys Soulcare 都絕對有可能。事實上，在 Keys Soulcare 上，品牌的建立方式是通過強有力的合作。如果我們想到我們的光之工作者，我們發布的所有內容，您從 Keys Soulcare 聽到的不同聲音，我們將繼續與一群志同道合的人合作，把那個消息帶出來。然後 W3LL PEOPLE，同樣，我們覺得有很大的潛力。我們認為 W3LL PEOPLE 是一顆真正的瑰寶，不僅因為它作為清潔美容真正先驅的傳統，而且因為它對清潔美容和健康的更廣泛視野。我們認為那裡也存在良好的合作夥伴關係。所以你請繼續關注。您將繼續與我們一起看到更多。

And then on Keys Soulcare, I would say that Ulta at Target presents us an opportunity certainly for the future. We're still in the exclusivity period with Ulta. And so I think the focus for them was really making the most of Keys Soulcare in Ulta. But in the future, I'm quite hopeful that, that becomes another area of opportunity. But you'll continue to see us expand the presence of Keys Soulcare not only globally but also eventually in the U.S.

關於 Keys Soulcare，我想說 Target 的 Ulta 無疑為我們帶來了未來的機會。我們仍處於 Ulta 的獨占期。因此，我認為他們的重點實際上是充分利用 Ulta 的 Keys Soulcare。但在未來，我非常希望這成為另一個機會領域。但您將繼續看到我們不僅在全球而且最終在美國擴大 Keys Soulcare 的影響力。

This concludes our question-and-answer session. I will now turn the conference back over to management for closing remarks.

我們的問答環節到此結束。我現在將把會議轉回管理層進行閉幕致辭。

Great. Well, thank you, everyone, for joining us. I'm incredibly proud of the e.l.f. Beauty team not only in how we've navigated this pandemic, delivering our 10th consecutive quarter of net sales growth with the tremendous momentum we have across our entire brand portfolio. So we look forward to talking to you next quarter and updating you on our progress. But meanwhile, thank you for joining us.

偉大的。好的，謝謝大家加入我們。我為 e.l.f 感到無比自豪。美容團隊不僅幫助我們應對了這一流行病，還憑藉我們整個品牌組合的巨大勢頭實現了連續第十個季度的淨銷售額增長。因此，我們期待下個季度與您交談並向您通報我們的進展情況。但與此同時，感謝您加入我們。

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。