elf Beauty Inc (ELF) 2021 Q4 法說會逐字稿

Thank you for joining us today to discuss e.l.f. Beauty's Fourth Quarter and Fiscal 2021 Results. I'm Casey Katten, Vice President of 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 的第四季度和 2021 財年業績。我是凱西·卡滕 (Casey Katten)，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'll find factors that could cause actual results to differ materially from these forward-looking statements.

由於我們今天的許多言論都包含前瞻性陳述，請參閱我們向美國證券交易委員會提交的收益報告和報告，您會發現可能導致實際結果與這些前瞻性陳述存在重大差異的因素。

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

此外，該公司今天的演示文稿還包括基於非公認會計原則（Non-GAAP）的信息。我們的收益報告包含非公認會計原則表述與最直接可比的公認會計原則衡量指標之間差異的調節。

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

接下來，讓我將網絡廣播轉交給塔朗。

Thank you, Casey, and good afternoon, everyone. I hope that you're well. Today, we'll discuss our results in the fourth quarter, full year fiscal 2021 and outlook for fiscal 2022.

謝謝你，凱西，大家下午好。我希望你很好。今天，我們將討論第四季度的業績、2021 財年全年的業績以及 2022 財年的展望。

I want to start by recognizing our e.l.f. Beauty team. We have much to be proud of in fiscal '21. Q4 marked our ninth consecutive quarter of net sales growth. While the color cosmetics category was negatively affected by the COVID-19 pandemic, our outperformance throughout the year underscored the strength of our business model. In fiscal '21, e.l.f. Cosmetics was the only top 5 color cosmetics brand to post growth and the only top 5 brand to gain share with 5.7% of the market, up 100 basis points year-over-year.

我想從認識我們的 e.l.f 開始。美容團隊。在 21 財年，我們有很多值得自豪的事情。第四季度標誌著我們連續第九個季度實現淨銷售額增長。儘管彩妝品類受到了 COVID-19 大流行的負面影響，但我們全年的優異表現凸顯了我們商業模式的優勢。在 21 財年，e.l.f.化妝品是排名前五的彩妝品牌中唯一實現增長的，也是排名前五的唯一一個獲得5.7%市場份額的品牌，同比增長100個基點。

We advanced our transformation to a multi-brand portfolio with the recharge of W3LL PEOPLE and launch of Keys Soulcare. We also continue to lead with purpose. e.l.f. Beauty stands with every eye, lip, face and paw. Since our founding, we've had a deep commitment to diversity and inclusion. We are 1 of only 5 public companies in the U.S. with a Board of Directors that has over 55% women and over 20% black representation.

隨著 W3LL PEOPLE 的充值和 Keys Soulcare 的推出，我們推進了向多品牌組合的轉型。我們還將繼續有目標地引領。e.l.f.美麗存在於每一個眼睛、嘴唇、臉和爪子上。自成立以來，我們一直致力於多元化和包容性。我們是美國僅有的 5 家董事會中女性比例超過 55%、黑人比例超過 20% 的上市公司之一。

We're proud that our employee base, which is over 75% women, over 40% diverse and over 60% millennial and Gen Z is representative of the young, diverse consumers we serve.

我們感到自豪的是，我們的員工群體中超過 75% 為女性，超過 40% 為多元化員工，超過 60% 為千禧一代和 Z 世代，他們代表了我們所服務的年輕、多元化消費者。

We achieved a significant milestone on our sustainability journey this year, reducing an estimated 650,000 pounds of excess packaging through Project Unicorn. We accomplished all of this with an unwavering focus on executing our 5 strategic imperatives.

今年，我們在可持續發展之旅上實現了一個重要里程碑，通過“獨角獸計劃”減少了約 650,000 磅的多餘包裝。我們堅定不移地專注於執行 5 項戰略任務，從而實現了這一切。

Let me provide a few highlights from the year. Our first strategic imperative is to drive brand demand. e.l.f. Cosmetics now has nearly 12 million followers across our digital ecosystem, growing double digits year-over-year. Our earned media value was up 29% compared to prior year, and we're the only brand growing in our competitive set. We continue to find innovative ways to engage and entertain our community, moving far beyond traditional beauty boundaries.

讓我介紹一下今年的一些亮點。我們的首要戰略任務是推動品牌需求。e.l.f.目前，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。與去年相比，我們的贏得媒體價值增長了 29%，並且我們是競爭中唯一增長的品牌。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。

In music, we became a global sensation with our first TikTok Hashtag challenge, featuring our original Eyes. Lips. Face. song, which remains one of the most viral campaigns in TikTok history. We are the first beauty brand to drop a holiday album, launched a campaign on Triller and have 4 songs make the U.S. and Global Billboard's Triller Top 20 list. This year's BeautyScape event, the remix infuse the power of makeup and music and feature 3 musical artists, including Grammy Nominated global superstar, Tove Lo.

在音樂方面，我們的首個 TikTok 話題標籤挑戰賽引起了全球轟動，其中包括我們原創的《Eyes》。嘴唇。臉。這首歌仍然是 TikTok 歷史上最火爆的活動之一。我們是第一個發行假日專輯的美容品牌，在 Triller 上發起了一項活動，並且有 4 首歌曲進入美國和全球公告牌的 Triller 前 20 名榜單。今年的 BeautyScape 活動中，混音版融入了化妝和音樂的力量，並邀請了 3 名音樂藝術家參與，其中包括格萊美提名的全球巨星 Tove Lo。

We ventured into gaming, which resonates strongly with our young diverse community. We are the first major beauty brand to launch a branded channel on Twitch named e.l.f. You. Our Twitch channel champions female empowerment and gamers and features new streams every week.

我們涉足遊戲領域，這與我們年輕的多元化社區產生了強烈的共鳴。我們是第一個在 Twitch 上推出名為 e.l.f. 的品牌頻道的主要美容品牌。你。我們的 Twitch 頻道倡導女性賦權和遊戲玩家，每週都會推出新的直播。

Our first live stream generated nearly 1 million views. We also teamed up with Loserfruit, also known as LuFu, one of the world's top female gamers. The response to our collaboration has been overwhelming with over 37,000 hours of e.l.f. content watched.

我們的第一次直播產生了近 100 萬次觀看。我們還與Loserfruit（又名LuFu）合作，她是世界頂級女性遊戲玩家之一。我們的合作反響熱烈，共進行了超過 37,000 小時的 e.l.f.觀看的內容。

We also ventured into original content creation with the release of Eyes. Lips. Famous, the first ever TikTok reality show. The show generated 38 million views, over 3,000 submissions and even the TV industry took note.

隨著《Eyes》的發布，我們還涉足原創內容創作。嘴唇。著名的，首個 TikTok 真人秀。該節目獲得了 3800 萬次觀看，超過 3000 份提交，甚至電視行業也注意到了這一點。

We also explored unexpected brand-on-brand partnerships with like-minded disruptors. In March, we launched a limited-edition product collaboration with Chipotle. The collaboration generated 4 billion press impressions and sold out in record time across multiple online channels.

我們還與志同道合的顛覆者探索了意想不到的品牌間合作夥伴關係。3 月份，我們與 Chipotle 推出了限量版產品合作。此次合作產生了 40 億次媒體曝光，並在多個在線渠道上以創紀錄的速度售罄。

Tapping into e.l.f. superpowers of being vegan and cruelty-free, Chipotle offered a limited-edition Eyes. Chips. Face. Bowl, a beauty inspired all-vegan entrée. The bowl marked the first time Chipotle introduced a menu item in collaboration with another consumer brand.

挖掘 e.l.f.Chipotle 憑藉純素食和零殘忍的超能力，推出了限量版 Eyes。籌碼。臉。Bowl，一道以美麗為靈感的全素食主菜。這款碗標誌著 Chipotle 首次與另一個消費品牌合作推出菜單項。

Our brand-building efforts continue to win awards. This year, we were recognized as one of Beauty's most powerful brands, Newsmaker of the Year and one of the top 10 marketers of the year, among many other awards. We increased our rank in Piper Sandler's semiannual teen survey from fourth favorite cosmetics brand last year to second this year and just 8 votes away from the #1 spot, reflecting our growing appeal with Gen Z.

我們的品牌建設努力不斷獲獎。今年，我們被公認為美容界最具影響力的品牌之一、年度新聞人物和年度十大營銷商之一，以及許多其他獎項。在Piper Sandler 的半年度青少年調查中，我們的排名從去年最受歡迎的化妝品品牌第四名上升到今年的第二名，距離第一名僅差8 票，這反映出我們對Z 世代的吸引力不斷增強。

We took an important step in our transformation to a multi-brand portfolio with the launch of Keys Soulcare, our groundbreaking lifestyle beauty brand with Alicia Keys focused on holistic wellness. Keys Soulcare carves out a new category in beauty called Soulcare going beyond skin care to care for the body, mind and spirit.

我們與 Alicia Keys 合作推出了突破性的生活方式美容品牌 Keys Soulcare，在向多品牌組合轉型方面邁出了重要一步，專注於整體健康。Keys Soulcare 開闢了一個新的美容類別，稱為 Soulcare，超越皮膚護理，照顧身體、心靈和精神。

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Keys Soulcare is off to a great start. We're encouraged the by global recognition the brand is receiving with over 15 billion press impressions as well as numerous brand and product awards, all in just few months since launch.

Keys Soulcare 有了一個良好的開端。自推出以來的短短幾個月內，該品牌就獲得了超過 150 億次的媒體印像以及無數的品牌和產品獎項，這讓我們深受鼓舞。

Alicia is an inspiration to so many. The brand is resonating with a broad set of global consumers with a healthy mix of both men and women. Instagram engagement metrics are trending well above platform averages. We're particularly excited about the level of engagement we're seeing with consumers on keyssoulcare.com. Our weekly e-mail newsletter subscriptions are growing, and our SMS text messages are proving to be one of our strongest conversion driving channels.

艾麗西亞給很多人帶來了靈感。該品牌以健康的男女組合贏得了廣泛的全球消費者的共鳴。Instagram 參與度指標的趨勢遠高於平台平均水平。我們對在 keysoulcare.com 上看到的消費者參與度感到特別興奮。我們每週的電子郵件通訊訂閱量正在增長，而我們的短信被證明是我們最強大的轉化驅動渠道之一。

Looking to W3LL PEOPLE, this was our first full year operating this plant-powered Clean Beauty brand. The key theme this year was recharge as we transformed many aspects of the brand, including price points, imagery, website, social channels, media strategy and the in-store experience.

對於 W3LL PEOPLE 來說，這是我們運營這個以植物為動力的 Clean Beauty 品牌的第一個全年。今年的關鍵主題是“充電”，我們改變了品牌的許多方面，包括價格點、形象、網站、社交渠道、媒體策略和店內體驗。

In the coming months, we're excited to phase in new packaging that provides a fresh expression of the brand. We feel great about W3LL PEOPLE, and are encouraged by the momentum we're starting to see.

在接下來的幾個月裡，我們很高興能夠逐步採用新包裝，為品牌提供全新的表達方式。我們對 W3LL PEOPLE 感覺很好，並對我們開始看到的勢頭感到鼓舞。

Our second strategic imperative is a major step-up in digital. Digital consumption remained strong throughout fiscal '21, up triple digits year-over-year, with strength across elfcosmetics.com, retailer.coms and Amazon. Digital channels expanded to 17% of our total business, up from 9% a year ago.

我們的第二個戰略要務是數字化方面的重大進步。整個 21 財年數字消費依然強勁，同比增長三位數，其中 elfcosmetics.com、retailer.com 和亞馬遜表現強勁。數字渠道占我們總業務的比例從一年前的 9% 擴大到 17%。

On elfcosmetics.com, approximately 75% of our shoppers this year were new consumers. These consumers are over-indexing on skin care and sign-ups for our Beauty Squad Loyalty Program. Beauty Squad now has over 2.4 million members, up 40% year-over-year. Our loyalty members have higher average order values, purchase more frequently, have stronger retention rates and drive almost 70% of our sales on elfcosmetics.com.

在 elfcosmetics.com 上，今年大約 75% 的購物者是新消費者。這些消費者對皮膚護理和註冊我們的 Beauty Squad 忠誠計劃的指數過高。Beauty Squad 目前擁有超過 240 萬名會員，同比增長 40%。我們的忠誠會員擁有更高的平均訂單價值、更頻繁的購買、更高的保留率，並推動了 elfcosmetics.com 上近 70% 的銷售額。

Our third strategic imperative centers on leading innovation. e.l.f. Cosmetics saw continued success in fiscal 2021 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。e.l.f.2021 財年，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。

Looking beyond our core segments, we continue to leverage our unique ability to create prestige quality products at extraordinary prices. Two of our biggest launches were CAMO CC Cream and lash it loud. mascara, which are helping to drive momentum in foundation and mascara, the 2 largest categories within color cosmetics. In Q4, CAMO CC Cream was our top-selling product.

超越我們的核心領域，我們繼續利用我們獨特的能力以非凡的價格創造優質的產品。我們最重要的兩款產品是 CAMO CC Cream 和 lash itloud。睫毛膏，有助於推動彩妝中兩大類別粉底和睫毛膏的發展勢頭。第四季度，CAMO CC 霜是我們最暢銷的產品。

Skin care remains a major focus of our brand portfolio. e.l.f. skin care consumption for the year was up 22% in tracked channels versus a category that was down 3%. Keys Soulcare further fuels our momentum and overall product range in this category. The brand's initial skin care collection includes 9 product offerings with dermatologists developed clean formulas, skin nourishing ingredients and soul-nurturing rituals. The consumer response has been incredible, with average product ratings of 4.9 out of 5 stars on keyssoulcare.com.

護膚仍然是我們品牌組合的主要焦點。e.l.f.在跟踪渠道中，今年的護膚品消費量增長了 22%，而其他類別則下降了 3%。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。該品牌最初的護膚系列包括 9 種產品，由皮膚科醫生開發的清潔配方、皮膚滋養成分和靈魂滋養儀式。消費者的反應令人難以置信，keysoulcare.com 上的產品平均評分為 4.9 星（滿分 5 星）。

Our fourth strategic imperative is driving productivity with our national retail partners. e.l.f. Cosmetics maintained its industry-leading productivity on a sales per foot basis at both Walmart and Target, our 2 largest customers. We're also pleased with the space expansion we earned with both Walmart and Ulta Beauty.

我們的第四個戰略要務是與我們的全國零售合作夥伴一起提高生產力。e.l.f.在我們的兩大客戶沃爾瑪和塔吉特，化妝品部門按每英尺銷售額計算，保持了行業領先的生產力。我們還對沃爾瑪和 Ulta Beauty 獲得的空間擴張感到滿意。

For context, Target is our most developed and longest-standing national retailer, and our store footprint today is about 11 feet on average. This is significantly less than many of the legacy color cosmetics brands, yet e.l.f. achieved the #2 dollar share position, up from #3 last year. Our average footprint in Ulta is now about 8 feet and in Walmart is about 6 feet.

就背景而言，Target 是我們最發達、歷史最悠久的全國性零售商，如今我們的商店佔地面積平均約為 11 英尺。這明顯低於許多傳統彩妝品牌，但 e.l.f.美元份額排名從去年的第三位上升到第二位。目前，我們在 Ulta 的平均佔地面積約為 8 英尺，在沃爾瑪的平均佔地面積約為 6 英尺。

Even with the space expansion we earned this past year, we see shelf space opportunity with all of our key retailers. We achieved new milestones internationally, which make up approximately 11% of our business. e.l.f. now ranks #8 in mass cosmetics in the U.K., up from #12 last year and was the only top 10 brand to post growth.

即使我們去年獲得了空間擴張，我們仍然看到了所有主要零售商的貨架空間機會。我們在國際上實現了新的里程碑，國際業務約占我們業務的 11%。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，並且是前 10 名中唯一實現增長的品牌。

In fiscal 2021, we launched e.l.f. Cosmetics with new international customers like Shoppers Drug Mart in Canada and expanded in new geographies like India and Italy. Our fifth strategic imperative is delivering cost savings to help fuel brand investments.

在 2021 財年，我們推出了 e.l.f.化妝品擁有加拿大的 Shoppers Drug Mart 等新國際客戶，並在印度和意大利等新地區進行擴張。我們的第五個戰略要務是節省成本，以幫助推動品牌投資。

We're pleased with the 80 basis points of gross margin expansion we saw this year against tariff-related pressure and growing FX headwinds. Our operations team continues to generate cost savings via lean manufacturing techniques that have contributed to our strong gross margin rates.

我們對今年在關稅相關壓力和不斷增長的外匯逆風下毛利率增長 80 個基點感到滿意。我們的運營團隊繼續通過精益製造技術節省成本，這為我們帶來了強勁的毛利率。

Additionally, this year, we successfully transferred all W3LL PEOPLE products to our operations platform, unlocking significant COG savings, which we redeployed into more accessible pricing. We believe our scalable asset-light supply chain in China is a competitive advantage that enables us to deliver the best combination of cost, quality and speed across our brands.

此外，今年，我們成功地將所有 W3LL PEOPLE 產品轉移到我們的運營平台，顯著節省了 COG，我們將其重新部署到更容易接受的定價中。我們相信，我們在中國可擴展的輕資產供應鍊是一項競爭優勢，使我們能夠為我們的品牌提供成本、質量和速度的最佳組合。

Like many companies, we're seeing global imbalancing containers, which is slowing some of our shipments and increasing our transportation costs. Mandy will speak more about this shortly.

與許多公司一樣，我們看到全球集裝箱不平衡，這導致我們的部分貨運速度減慢並增加了我們的運輸成本。曼迪很快就會詳細討論這一點。

In other operational matters, we're no longer pursuing our liquid fill manufacturing facility in California. The plant had faced a number of COVID-related delays. As we got deeper into the engineering work and revised business case, we made the decision to stop further investment and instead focus on the competitive advantage we have with our existing supply chain.

在其他運營問題上，我們不再追求在加利福尼亞州的液體灌裝製造工廠。該工廠曾面臨多次與新冠疫情相關的延誤。隨著我們深入研究工程工作並修改業務案例，我們決定停止進一步投資，轉而關注我們現有供應鏈的競爭優勢。

We plan to continue to look for ways to both strengthen and diversify our supply chain over time. To that end, in fiscal '21, we started operations with new suppliers in both Thailand and Taiwan, that can leverage a chassis and multifunctional team we have in China. The progress on our 5 strategic imperatives has been terrific, and we believe we're still in the early innings with each.

我們計劃隨著時間的推移繼續尋找加強供應鏈並使其多元化的方法。為此，我們在 21 財年開始與泰國和台灣的新供應商合作，這些供應商可以利用我們在中國擁有的底盤和多功能團隊。我們的 5 項戰略要務取得了驚人的進展，我們相信每一項戰略都還處於初期階段。

Before I turn the call over to Mandy, let me provide a bit more perspective on why I'm optimistic that we can continue our momentum into fiscal 2022. First, we plan to continue being e.l.f. in disruptive, pushing even further into new digital frontiers like gaming to bring new consumers to our brands.

在我將電話轉給 Mandy 之前，讓我提供更多觀點，解釋為什麼我對我們能夠在 2022 財年繼續保持這一勢頭持樂觀態度。首先，我們計劃繼續成為 e.l.f。具有顛覆性，進一步推進遊戲等新的數字前沿，為我們的品牌帶來新的消費者。

We recently announced a partnership with TikTok and Enthusiast Gaming, the largest gaming media platform in North America to launch TikTok Gamers Got Talent. This 7-week live series follows contestants as they showcase their talent and compete in front of millions of fans for a chance to win $25,000, and of course, e.l.f. products. The TikTok Gamers Got Talent Hashtag generated over 5 billion views in the first 3 days and is now over 13 billion views in just a few weeks.

我們最近宣布與 TikTok 和北美最大的遊戲媒體平台 Enthusiast Gaming 合作，推出 TikTok Gamers Got Talent。這個為期 7 週的直播系列節目將跟隨參賽者展示自己的才華，並在數百萬粉絲麵前展開角逐，爭取贏得 25,000 美元獎金的機會，當然還有 e.l.f.產品。TikTok Gamers Got Talent 標籤在前 3 天內產生了超過 50 億次觀看次數，現在在短短幾週內就超過了 130 億次觀看次數。

We also plan to continue unexpected partnerships with like-minded disruptors. As just one example, in April, we announced a collaboration with Beauty Entrepreneur, Jen Atkin, the founder of Ouai Haircare and Mane Addicts.

我們還計劃繼續與志同道合的顛覆者建立意想不到的合作夥伴關係。僅舉一個例子，四月份，我們宣布與美容企業家、Ouai Haircare 和 Mane Addicts 的創始人 Jen Atkin 合作。

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The second thing that gives me confidence is that we still see a significant amount of white space across categories, geographies and our expanding brand portfolio. We plan to push further into larger categories like foundation, mascara and skin care.

讓我充滿信心的第二件事是，我們在品類、地域和不斷擴大的品牌組合中仍然看到大量的空白。我們計劃進一步進軍更大的品類，如粉底、睫毛膏和護膚品。

In skin care, for example, we're pivoting our marketing strategy to treat e.l.f. skin as our fourth brand in our portfolio. While color cosmetics purchases are often driven by inspiration and impulse, skin care purchases are generally driven by efficacy and education and require a different way to engage with consumers. We're excited about both the marketing strategy and innovation we've planned for e.l.f. skin in fiscal '22.

例如，在皮膚護理領域，我們正在調整營銷策略來治療 e.l.f.Skin 作為我們產品組合中的第四個品牌。彩妝的購買通常是由靈感和衝動驅動的，而護膚品的購買通常是由功效和教育驅動的，需要以不同的方式與消費者互動。我們對 e.l.f. 計劃的營銷策略和創新感到興奮。22 財年的皮膚。

From a geographical perspective, Keys Soulcare is accelerating our global retail strategy. In the U.S., Keys Soulcare represented Ulta's first ever entire store takeover in both site and sound. Keys Soulcare is also opening new doors internationally, like Douglas. We're excited about the execution you'll see in the coming months as we launch in 8 countries across the EU.

從地域角度來看，Keys Soulcare正在加速我們的全球零售戰略。在美國，Keys Soulcare 代表了 Ulta 首次在場地和聲音方面全面接管整個商店。Keys Soulcare 也像 Douglas 一樣在國際上打開了新的大門。我們對未來幾個月我們在歐盟 8 個國家/地區推出時將看到的執行情況感到非常興奮。

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.

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。

Our business results were strong entering the pandemic, and our digital strength's core value proposition and ability to adapt at e.l.f. speed have continued to fuel our performance. Today, with a more diversified brand portfolio, we believe we are positioned for an even brighter future.

進入疫情期間，我們的業務業績強勁，我們的數字優勢的核心價值主張和 e.l.f. 的適應能力。速度繼續推動我們的業績。今天，憑藉更加多元化的品牌組合，我們相信我們將迎來更加光明的未來。

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 fourth quarter and full year fiscal 2021 results. We ended the year strong.

謝謝你，塔朗。我很高興與大家分享我們出色的第四季度和 2021 財年全年業績的亮點。我們以強勁的勢頭結束了這一年。

In the fourth quarter, net sales grew 24% versus prior year, driven by ongoing momentum for the e.l.f. Cosmetics brand, benefits from stimulus related spending and the launch of Keys Soulcare. We also delivered 14% growth in adjusted EBITDA with ongoing investment in marketing and digital as well as increasing FX headwinds to our gross margin.

在 e.l.f. 持續發展勢頭的推動下，第四季度淨銷售額較去年同期增長 24%。化妝品品牌受益於刺激相關支出和 Keys Soulcare 的推出。由於對營銷和數字化的持續投資以及毛利率的外匯不利因素不斷增加，我們的調整後 EBITDA 也實現了 14% 的增長。

Let's now turn to our full year fiscal 2021 results. We delivered net sales growth of 12%, with broad-based strength for e.l.f. Cosmetics across e-commerce, international and our national retailers. We also benefited from the launch of Keys Soulcare and a full year of W3LL PEOPLE.

現在讓我們來看看 2021 財年全年業績。我們的淨銷售額增長了 12%，e.l.f. 具有廣泛的實力。化妝品跨電子商務、國際和國內零售商。我們還受益於 Keys Soulcare 的推出和 W3LL PEOPLE 的全年活動。

Gross margin of 65% was up approximately 80 basis points compared to prior year. We saw gross margin benefits from margin accretive innovation, cost savings and a mix shift to elfcosmetics.com. We also benefited from FX, although much less so relative to prior years as we started to feel the impact of changing FX rates. Partially offsetting these benefits were costs related to retailer activity, space expansion, inventory adjustments as well as the impact of tariffs.

毛利率為 65%，比去年增加約 80 個基點。我們看到毛利率受益於利潤增值創新、成本節約以及向 elfcosmetics.com 的混合轉型。我們也從外匯中受益，儘管與前幾年相比要少得多，因為我們開始感受到匯率變化的影響。與零售商活動、空間擴張、庫存調整以及關稅影響相關的成本部分抵消了這些收益。

On an adjusted basis, SG&A as a percentage of sales was 52% compared to 49% last year, primarily driven by increased investment behind marketing and digital, headcount costs related to the build-out of our marketing, digital and innovation capabilities and increased operational costs related to higher e-commerce volume. Marketing and digital investment for the year was approximately 16% of net sales versus 13% a year ago.

調整後，SG&A佔銷售額的百分比為52%，而去年為49%，這主要是由於營銷和數字化背後的投資增加、與營銷、數字化和創新能力建設相關的人員成本以及運營增加所致與較高的電子商務量相關的成本。今年的營銷和數字投資約占淨銷售額的 16%，而去年同期為 13%。

Fiscal 2021 adjusted EBITDA was $61 million, down 2% to last year and adjusted EBITDA margin was approximately 19% of net sales. Adjusted net income was $37 million or $0.71 per diluted share compared to $32 million or $0.63 per diluted share a year ago. Our liquidity remains strong with the combination of our cash balance and access to our revolving credit facility sitting at over $130 million. We ended the year with $58 million in cash on hand compared to a cash balance of $46 million a year ago.

2021 財年調整後 EBITDA 為 6100 萬美元，比去年下降 2%，調整後 EBITDA 利潤率約為淨銷售額的 19%。調整後淨利潤為 3700 萬美元，即稀釋後每股收益 0.71 美元，而一年前為 3200 萬美元，即稀釋後每股收益 0.63 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。截至年底，我們手頭現金為 5,800 萬美元，而一年前的現金餘額為 4,600 萬美元。

In April, we refinanced our existing credit facility into a $200 million facility with $100 million of term loan and $100 million of revolver. We were able to improve terms across the board, including better pricing, taking advantage of favorable market conditions and the opportunity to further bolster our balance sheet flexibility.

4 月份，我們將現有信貸額度再融資為 2 億美元，其中包括 1 億美元的定期貸款和 1 億美元的循環貸款。我們能夠全面改善條款，包括更好的定價、利用有利的市場條件以及進一步增強資產負債表靈活性的機會。

Our ending inventory balance was higher on a year-over-year basis as planned and $12 million lower than where we exited the December quarter. We expect our cash priorities for the coming year to remain focused on investing behind our 5 strategic imperatives and supporting our strategic extensions.

我們的期末庫存餘額按計劃同比增加，比 12 月季度結束時減少 1200 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 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.

現在讓我們展望 2022 財年。需要提醒的是，2022 財年將是我們 3 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 EBITDA 增長超過淨銷售額增長。

For the full year, we expect net sales growth of approximately 8% to 10%, tracking at or ahead of our long-term economic model. We expect adjusted EBITDA to grow slightly faster than net sales, resulting in adjusted EBITDA margin expansion of approximately 5 to 10 basis points year-over-year and adjusted EBITDA between $66 million and $67.5 million.

我們預計全年淨銷售額增長約 8% 至 10%，符合或領先於我們的長期經濟模型。我們預計調整後 EBITDA 的增長將略快於淨銷售額的增長，從而導致調整後 EBITDA 利潤率同比增長約 5 至 10 個基點，調整後 EBITDA 在 6600 萬美元至 6750 萬美元之間。

We expect adjusted net income between $35 million and $36.8 million and adjusted EPS of $0.64 to $0.67 per diluted share. We expect a fully diluted share count of approximately 55 million shares and our fiscal 2022 tax rate to be approximately 24% to 25%.

我們預計調整後淨利潤為 3500 萬美元至 3680 萬美元，調整後每股攤薄每股收益為 0.64 美元至 0.67 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 24% 至 25%。

Let me provide you with a little more color on our planning assumptions for fiscal 2022. Starting with the top line. Our top line outlook reflects continued momentum for the e.l.f. Cosmetics brand. We also expect net sales to benefit from a full year contribution of Keys Soulcare and an increase year-over-year from W3LL PEOPLE.

讓我為您提供更多有關 2022 財年規劃假設的信息。從頂線開始。我們的營收前景反映了 e.l.f. 的持續發展勢頭。化妝品品牌。我們還預計淨銷售額將受益於 Keys Soulcare 的全年貢獻以及 W3LL PEOPLE 的同比增長。

There are 2 key factors balancing that momentum. First, we have not assumed any major space gains for e.l.f. Cosmetics in our fiscal 2022 outlook as compared to significant retailer space expansion we enjoyed in fiscal 2021. Retailer space decisions typically come later in the year, and we don't have confirmation of any major space gains as of the date of this call.

有兩個關鍵因素可以平衡這一勢頭。首先，我們沒有假設 e.l.f. 會獲得任何重大的空間收益。與 2021 財年零售商空間大幅擴張相比，我們對 2022 財年的展望是化妝品。零售商的空間決策通常在今年晚些時候做出，截至本次電話會議之日，我們尚未確認任何重大空間收益。

Second, as Tarang mentioned, we have recently experienced delays in shipments from China as a result of the container shortages and port congestion that many other companies have spoken about. This is resulting in shipment delays and elevated transportation costs as we work to meet consumer demand. We'll closely monitor these impacts as we move through fiscal 2022.

其次，正如塔朗所提到的，由於許多其他公司所談到的集裝箱短缺和港口擁堵，我們最近經歷了從中國發貨的延誤。當我們努力滿足消費者需求時，這會導致發貨延誤和運輸成本上升。我們將在 2022 財年期間密切關注這些影響。

Turning now to adjusted EBITDA. We are planning for adjusted EBITDA margin expansion of approximately 5 to 10 basis points year-over-year. We expect gross margin will be down year-over-year as we face growing FX headwinds and rising material and transportation costs. We are pulling levers where we can to help offset a portion of these gross margin impacts, including through select price increases and cost savings initiatives. As a result, we expect SG&A leverage to drive our expected adjusted EBITDA margin expansion this year, both as we take a sharper look at our key nonmarketing areas of spend and as we start to scale the Keys Soulcare and W3LL PEOPLE brands.

現在轉向調整後的 EBITDA。我們計劃將調整後的 EBITDA 利潤率同比擴大約 5 至 10 個基點。我們預計，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，毛利率將同比下降。我們正在盡可能地利用槓桿來幫助抵消部分毛利率影響，包括通過有選擇的提價和成本節約舉措。因此，我們預計 SG&A 槓桿將推動今年預期的調整後 EBITDA 利潤率擴張，因為我們更加仔細地審視了我們的關鍵非營銷支出領域，並且我們開始擴大 Keys Soulcare 和 W3LL PEOPLE 品牌的規模。

Of note, we're planning for marketing and digital spend to continue at approximately 14% to 16% of sales in fiscal 2022. From a cadence standpoint, we expect top line growth to be strongest in Q1 as we benefit from stimulus-related spending on top of our ongoing portfolio momentum.

值得注意的是，我們計劃 2022 財年營銷和數字支出繼續佔銷售額的 14% 至 16% 左右。從節奏的角度來看，我們預計第一季度的營收增長將最為強勁，因為除了我們持續的投資組合勢頭之外，我們還受益於與刺激相關的支出。

Conversely, we expect adjusted EBITDA margins will be most pressured on a year-over-year basis in Q1. This is largely a result of the gross margin pressures we just spoke about, coupled with the planned step-up in marketing spend as a percentage of sales as we lapped lower marketing levels in Q1 last year during the initial months of the pandemic.

相反，我們預計第一季度調整後 EBITDA 利潤率將面臨最大的同比壓力。這主要是由於我們剛才談到的毛利率壓力，再加上我們在去年第一季度大流行的最初幾個月中降低了營銷水平，因此計劃提高營銷支出佔銷售額的百分比。

In summary, we're pleased with our outstanding results in fiscal 2021 and excited about the opportunities ahead in fiscal 2022. Our performance over the last 9 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 2021 財年的出色業績感到滿意，並對 2022 財年的機遇感到興奮。我們過去 9 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 now open the call to questions.

接線員，您現在可以開始提問。

(Operator Instructions) Please note, this call is being recorded. (Operator Instructions) Our first question today will come from Dara Mohsenian with Morgan Stanley.

（操作員說明）請注意，此通話正在錄音。（操作員說明）我們今天的第一個問題將來自摩根士丹利的 Dara Mohsenian。

So I just wanted to touch on the revenue side. Obviously, you came in above your expectations in Q4. Can you just help us understand what drove that upside? How sustainable some of those items may be as you're looking out over the next few quarters? And then in terms of the U.S. cosmetics category, what you're seeing so far in fiscal Q1, given you're 2 months into the quarter? How is the recovery progressing on a year-over-year basis or looking back to 2019? So a bit of color on the category rebound here and what you're seeing in the last couple of months, maybe post the quarter?

所以我只想談談收入方面。顯然，您在第四季度的表現超出了您的預期。您能幫助我們了解是什麼推動了這種上升嗎？在您未來幾個季度的展望中，其中一些項目的可持續性如何？那麼就美國化妝品類別而言，考慮到本季度已經過去兩個月了，到目前為止，您在第一財季看到了什麼？與去年同期相比或回顧 2019 年，復甦進展如何？因此，該類別的一些色彩出現了反彈，以及您在過去幾個月（也許是本季度後）看到的情況？

Yes. No problem. All right. So I will start with Q4 and the key drivers that drove that 24% growth. I'll start off by saying we're very pleased with the 24% growth that we saw in Q4. Really, that was driven by 4 key factors. One is just the ongoing momentum we have with the e.l.f. brand. We saw that continue into Q4. Secondly is the impact of stimulus. The third round was, by far, the largest impact that we've seen out of the 3 stimulus rounds. So that also had an impact. I would also say that Keys Soulcare and pipeline related to that launch added to our sales in the quarter. And then lastly, we also spoke last quarter about orders shifting out of Q3 into Q4, that also had an impact to the quarter.

是的。沒問題。好的。因此，我將從第四季度以及推動 24% 增長的關鍵驅動因素開始。首先我要說的是，我們對第四季度 24% 的增長感到非常滿意。事實上，這是由 4 個關鍵因素驅動的。一是我們與 e.l.f 的持續動力。品牌。我們看到這種情況持續到第四季度。其次是刺激的影響。到目前為止，第三輪刺激是我們在三輪刺激中看到的最大影響。所以這也產生了影響。我還想說，Keys Soulcare 和與該產品發布相關的產品線增加了我們本季度的銷售額。最後，我們上季度還談到了訂單從第三季度轉移到第四季度的情況，這也對該季度產生了影響。

So I would say, overall, pleased with the underlying momentum that we saw in the quarter, but certainly also some stimulus related things that we think will kind of roll off. We talked about Q1 being stronger behind stimulus as well, and so you'll see that continue on into Q1.

因此，總的來說，我對本季度看到的潛在勢頭感到滿意，但我們認為一些與刺激相關的事情肯定會有所減少。我們談到第一季度在刺激措施的推動下也變得更加強勁，因此您會看到這種情況持續到第一季度。

Great. And then on your question on the category, we're definitely seeing a resurgence in color cosmetics. I think in the last 4 weeks in scanner data, the category was up 32%. We were up 52% during that same time period. So we're seeing even stronger results on e.l.f. But from a perspective of a broader view, I would say the category is still not back to where it was in 2019. I think it's down 3% relative to where it was in 2019. So we're seeing a recovery, I feel we have further to go.

偉大的。關於您關於該類別的問題，我們肯定會看到彩妝的複蘇。我認為在過去 4 週的掃描儀數據中，該類別增長了 32%。同期我們的股價上漲了 52%。所以我們在 e.l.f. 上看到了更強勁的結果。但從更廣泛的角度來看，我想說這個品類仍然沒有回到2019年的水平。我認為與 2019 年相比下降了 3%。所以我們看到了復甦，我覺得我們還有更進一步的路要走。

We're encouraged by -- as people get more vaccines, as restrictions are lifted, as people get back into retail, we're quite bullish on the category going forward. Certainly, stimulus was a benefit. But even as we start lapping some of the stimulus spending and looking at last year's stimulus around this time, we're still encouraged by what we're seeing overall.

我們感到鼓舞的是，隨著人們獲得更多疫苗，隨著限制的取消，隨著人們重新進入零售業，我們對這一類別的未來非常樂觀。當然，刺激是一種好處。但即使我們在這個時候開始研究一些刺激支出並審視去年的刺激措施，我們仍然對我們所看到的整體情況感到鼓舞。

Okay. And if I can just follow-up on the shipment issues with containers, et cetera, is that more of a short-term issue in the next few weeks here? Or is that something that could linger as you look out going forward? And how do you think about -- if there is potential upside for the year, your ability to actually supply product in terms of incremental retail demand versus what you're expecting?

好的。如果我可以跟進集裝箱等的運輸問題，那麼這在接下來的幾週內是否更像是一個短期問題？或者當你展望未來時，這種情況可能會持續存在？您如何看待——如果今年有潛在的上漲空間，您根據增量零售需求實際供應產品的能力與您的預期相比？

Sure. So like many other companies, we're facing that imbalance in global containers. And I would say that's going to impact us for at least the next few months. What I would tell you is imbalances tend to balance out. Even in our history, we've had periods where you've had port strikes, other disruptions in supply. We feel confident in terms of our overall capacity and ability to manufacture products. And our guidance is reflective of the imbalance that we're seeing. So the 8% to 10% revenue growth takes into consideration any of the supply imbalance that we're seeing currently.

當然。因此，像許多其他公司一樣，我們面臨著全球集裝箱的不平衡。我想說這至少會在接下來的幾個月內影響我們。我要告訴你的是，不平衡往往會得到平衡。即使在我們的歷史上，我們也曾經歷過港口罷工和其他供應中斷的時期。我們對我們的整體能力和製造產品的能力充滿信心。我們的指導反映了我們所看到的不平衡現象。因此，8% 到 10% 的收入增長考慮到了我們目前看到的任何供應不平衡的情況。

Our next question comes from Erinn Murphy with Piper Sandler.

我們的下一個問題來自艾琳·墨菲和派珀·桑德勒。

My question is around the Keys Soulcare brand. I was curious if you could speak a little bit more about the response thus far, particularly internationally? And then as you think through the guidance for the year, I'm not sure if you're -- Mandy, if you're breaking out kind of what Keys could contribute. But if you could just help us shape how like the pipeline fill will look as we move throughout the year, if there's any specific quarter to call out as you kind of roll out in additional retailers abroad? And then I have a quick follow-up.

我的問題是關於 Keys Soulcare 品牌的。我很好奇您能否多談談迄今為止的反應，特別是國際上的反應？然後，當你思考今年的指導時，我不確定你是否——曼迪，你是否正在突破基斯可以做出的貢獻。但是，如果您能幫助我們確定全年的管道填充情況，以及在您向海外其他零售商推出產品時是否有任何特定的季度需要指出？然後我會進行快速跟進。

Great. So Erinn, we're really pleased with the launch of Keys Soulcare. As I mentioned in the prepared remarks, since we announced the brand, we've had over 15 billion press impressions. Our Instagram engagement rates are higher. And we're particularly pleased with what we're seeing in terms of support from our key customers. So in our Ulta Beauty launch, it was the first time ever that they dedicated the entire store takeover to a brand launch. We're at the front of the store for 12 weeks. As we've moved on to an end cap in the prestige section, we're really pleased with kind of what they're doing behind the brand. We're equally pleased with the plans that Douglas has against the brand.

偉大的。Erinn，我們對 Keys Soulcare 的推出感到非常高興。正如我在準備好的發言中提到的，自從我們宣布該品牌以來，我們已經獲得了超過 150 億次媒體印象。我們的 Instagram 參與率更高。我們對主要客戶的支持感到特別滿意。因此，在我們的 Ulta Beauty 發布會上，這是他們第一次將整個商店接管用於品牌發布會。我們在商店門口待了 12 週。當我們進入聲望部分的結尾時，我們對他們在品牌背後所做的事情感到非常滿意。我們對道格拉斯針對該品牌的計劃同樣感到滿意。

So internationally, Keys Soulcare will definitely accelerate our move internationally as a global brand. What I'd tell you internationally right now is much of Europe has been shut down. So some of our launches did move out a few months, particularly in Germany, which is still closed. But we're encouraged as markets start to open up, as vaccination rates get better there, you'll hear us talk more about Keys internationally. I'm excited for you to see what that looks like as Douglas goes up.

因此，在國際上，Keys Soulcare 肯定會加速我們作為全球品牌的國際化進程。我現在要告訴你們的是，歐洲大部分地區已經被封鎖。因此，我們的一些發布確實推遲了幾個月，特別是在德國，該國仍處於關閉狀態。但隨著市場開始開放，隨著疫苗接種率的提高，我們受到鼓舞，你會聽到我們在國際上更多地談論 Keys。我很高興你能看到道格拉斯崛起時的樣子。

Yes. And then, Erinn, just on your question on the impact to the quarters and what are we seeing, so we're not breaking out the impact of revenue for each of the brands. But I can say that pipeline or new product launches, all of those things, that is embedded within our 8% to 10% guidance that we've provided.

是的。然後，Erinn，關於您對季度影響以及我們所看到的問題，因此我們不會詳細說明每個品牌的收入影響。但我可以說，管道或新產品的發布，所有這些，都包含在我們提供的 8% 到 10% 的指導中。

Okay. Great. And then just a quick follow-up for you, Mandy, on pricing for the e.l.f. brand. I think you were taking some pricing, has any of that gone in? What percent of the SKU base have you taken price on? And just curious if there's been any consumer response as you think about mitigating factors to some of the gross margin pressures you called out?

好的。偉大的。然後，曼迪，我想快速跟進一下 e.l.f. 的定價。品牌。我想你已經接受了一些定價，其中有沒有包含在內？您已定價的 SKU 基數的百分比是多少？只是想知道，當您考慮減輕您提出的一些毛利率壓力的因素時，消費者是否有任何反應？

Yes. And so we did talk about using pricing as a lever. We talked about that last quarter. And I can say that, that pricing has -- is in effect now. In May, we took that pricing. We'll take some time for that to show up at shelf, just similar to our July of 2019 price increase that we took. And at that time, recall, we took pricing on about 1/3 of our SKUs. I can say for this round, in the U.S., it is much smaller. And internationally, we did not take a price increase in 2019. So this is a larger price increase, I would say, internationally, versus what we took in the U.S. here in May. So that is definitely a lever we're looking to, to help offset some of the FX headwinds we've spoken about, and we'll have more to say on that in the coming months.

是的。所以我們確實討論了使用定價作為槓桿。我們上個季度討論過這個問題。我可以說，定價現在已經生效。五月份，我們採取了這個定價。我們需要一些時間才能上架，這與我們 2019 年 7 月的漲價類似。回想一下，當時我們對大約 1/3 的 SKU 進行了定價。我可以說，對於這一輪，在美國，規模要小得多。從國際上看，2019年我們沒有漲價。因此，我想說，與我們 5 月份在美國的價格相比，國際上的價格漲幅更大。因此，這絕對是我們正在尋求的一個槓桿，以幫助抵消我們已經談到的一些外匯不利因素，我們將在未來幾個月內對此進行更多討論。

Our next question comes from Andrea Teixeira with JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

Congrats on the quarter. I appreciate your commentary about the disruptions, but I think it will be helpful if you could give us how much you're baking in? Is that 100 bps or 200 bps of the outlook and trying -- I think we all understand will eventually come back, right? So I'm assuming you're not thinking it will come back in fiscal '22. And then related to that, I understand, Mandy, you don't want to break down by brand. But if you can give us an idea, if you're looking at underlying with the impact from the disruptions that you have in the supply chain to be around mid single-digit for organic and then the rest being your contribution from both Keys Soulcare and W3LL PEOPLE? And then I have a follow-up on the diluted number of shares.

恭喜本季度。我很欣賞您對中斷的評論，但我認為如果您能告訴我們您的烘焙程度會有所幫助嗎？這是100個基點還是200個基點的前景和嘗試——我想我們都明白最終會回來，對嗎？所以我假設你不認為它會在 22 財年回歸。與此相關的是，我明白，曼迪，你不想按品牌來細分。但是，如果您能給我們一個想法，如果您正在考慮供應鏈中斷對有機產品的潛在影響，其影響約為中個位數，那麼剩下的就是您對 Keys Soulcare 和W3LL 人？然後我對稀釋後的股份數量進行了跟進。

Yes. Okay. So let me take the underlying impact question first on just trying to understand the trends that we're seeing by brand. I would say that, like I said in our prepared remarks, we're really pleased with the underlying momentum that we have on the e.l.f. brand. And I think that a lot of the analysts and investors look to Nielsen data to kind of get a pulse on where we're seeing trends on the e.l.f. brand.

是的。好的。因此，讓我首先回答潛在的影響問題，試圖了解我們所看到的品牌趨勢。我想說的是，就像我在準備好的發言中所說的那樣，我們對 e.l.f. 的潛在動力感到非常滿意。品牌。我認為很多分析師和投資者都會通過尼爾森數據來了解 e.l.f. 的趨勢。品牌。

I will say that looking at Nielsen, we do expect that to be a little bit volatile, right, because we're recycling stimulus in the base and a lot of moving parts as we go through. We have stimulus now on top of stimulus. So there's -- that said, we just feel strong about where we're positioned from an e.l.f. standpoint.

我想說的是，看看尼爾森，我們確實預計會有點不穩定，對吧，因為我們正在循環利用基礎刺激和許多移動部件。除了刺激措施之外，我們現在還有刺激措施。所以，也就是說，我們對自己在 e.l.f. 中的定位感到很強烈。立場。

Keys and W3LL PEOPLE. W3LL PEOPLE, this will be kind of a growth year for W3LL PEOPLE, I would describe it. With the recharge in packaging and that's showing up at shelf, we certainly expect that to have an impact. And then with Keys Soulcare, it will also be incremental if you're thinking about how you build that up, as we launch more broadly internationally and build momentum behind that brand. So that's the additional color I can give you behind each of our brands.

鑰匙和 W3LL 人員。W3LL PEOPLE，這將是 W3LL PEOPLE 成長的一年，我會這樣描述。隨著包裝中的充電以及在貨架上的出現，我們當然希望這會產生影響。然後，通過 Keys Soulcare，如果您考慮如何建立它，它也將是漸進的，因為我們在國際上更廣泛地推出並在該品牌背後建立動力。這就是我可以為我們每個品牌提供的額外色彩。

Yes. And then on the container imbalance, what I'd tell you is it's definitely impacting our fulfillment rates right now. One of the benefits we have is each of our retailers carry a significant amount of inventory. So we haven't seen a major impact yet in terms of in-stock levels. Those are still pretty health. And so as we manage through that, we've embedded it in our guidance in terms of what we see, particularly through the front half of the year and we'll learn more and we'll report on that as we go forward. Hopeful that, that imbalance will balance out, and we'll be able to get more containers in.

是的。關於集裝箱不平衡，我要告訴你的是，它現在肯定會影響我們的履行率。我們的好處之一是我們的每個零售商都擁有大量庫存。因此，我們尚未看到庫存水平受到重大影響。這些仍然相當健康。因此，當我們解決這個問題時，我們已將其納入我們所看到的指導中，特別是在今年上半年，我們將了解更多信息，並在未來進行報告。希望這種不平衡能夠得到平衡，我們將能夠容納更多的集裝箱。

Yes. On that, I mean, is that critical for your summer launches, right? If you will, like late summer launches, what you're saying, you feel confident that the second quarter calendar would be not as bad? From what you just said about the beginning, it sounds like if you're very confident with, as you said, like you're in the high fill rates for the initial summer, which is then obviously the June quarter and then we have to monitor what's going to happen to the fall, is that the way we should be thinking? And then hopefully, by the December quarter, you're going to be in a much better position again?

是的。我的意思是，這對於你們的夏季發布會至關重要，對嗎？如果你願意，就像夏末發布一樣，你所說的，你有信心第二季度的日曆不會那麼糟糕嗎？從您剛才所說的開始來看，聽起來您是否非常有信心，正如您所說，就像您在最初的夏季處於高填充率一樣，那麼顯然是六月季度，然後我們必須監控秋天會發生什麼，這是我們應該思考的方式嗎？然後希望到 12 月季度，您將再次處於更好的位置？

That's what we hope. I mean it's still a dynamic situation. So we'll monitor it. What I would tell you is the fall resets, which is a key part, which we usually ship during summer. We are supplementing our shipments with some air freight to be able to make sure that we can set those shelves properly and on time, and that's reflected in some of the cost pressures that Mandy talked about.

這就是我們所希望的。我的意思是，這仍然是一個動態的情況。所以我們會監控它。我要告訴你的是秋季重置，這是一個關鍵部分，我們通常在夏季發貨。我們正在用一些空運來補充我們的貨運，以確保我們能夠正確、準時地放置這些貨架，這反映在曼迪談到的一些成本壓力中。

And one last -- no, that's helpful. And one last thing, Tarang and Mandy, for the diluted number of shares was a little bit higher. And I think, obviously, last year, maybe not the last fiscal year, may not be representative of what your compensation, [SEC] and all of those moving parts. Can you help us like understand what are the puts and takes there?

最後一點——不，這很有幫助。最後一件事，塔朗和曼迪，稀釋後的股票數量略高一些。我認為，顯然，去年，也許不是上一個財年，可能不能代表你的薪酬、[SEC] 和所有這些變動的部分。您能幫助我們了解那裡的看跌期權和索取期權是什麼嗎？

Yes, Andrea. Just on the share count that we provided, if you look at our Q4 fully diluted share count was around 53 million shares. If you recall in our evergreen, we talked about the share count -- the burn rate going down to 2%. So you can add that on to the 53 million where we exited Q4. And then additionally, we have had appreciation in the share price. So many anti-dilutive shares have turned into our dilutive share count. And so that's also being added in. And so that's how we're getting to that kind of that 55 million range for fiscal '22.

是的，安德里亞。僅根據我們提供的股票數量，如果您查看我們第四季度完全稀釋後的股票數量，約為 5300 萬股。如果您還記得在我們的常青樹中，我們討論過份額計數——燒錢率降至 2%。因此，您可以將其添加到我們第四季度退出時的 5300 萬中。此外，我們的股價也有所上漲。這麼多反稀釋股票變成了我們的稀釋股票數量。所以這也被添加進來。這就是我們如何在 22 財年達到 5500 萬的範圍。

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

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

Yes. So can you just talk a little bit about your comment about treating skin care as a fourth brand? That sort of sounds to me like maybe needing more marketing investment behind it. And does that mean you get less kind of halo effect as the overall brand kind of boosting both? I mean can you just give more color on what you mean by treating it as a fourth brand?

是的。那麼您能簡單談談您對將護膚品視為第四個品牌的看法嗎？在我看來，這聽起來可能需要更多的營銷投資。這是否意味著隨著整體品牌對兩者的推動，你會得到更少的光環效應？我的意思是，你能否通過將其視為第四個品牌來進一步說明你的意思？

Sure, Linda. We've seen great momentum in skin care. And in fact, if you take a look at the track channel sales, e.l.f. skin was up 22% this last fiscal year in a category that was down 3%. So we've been having momentum for quite some time, executing on our strategy. This just reflects the growing strategic importance of skin care as part of our overall portfolio. Obviously, Keys Soulcare was launched skin care first as a category. On e.l.f., we have high hopes and plans for skin care.

當然，琳達。我們看到了皮膚護理領域的巨大發展勢頭。事實上，如果你看一下渠道銷售情況，e.l.f.上一財年，皮膚類產品的價格上漲了 22%，而該類產品則下降了 3%。因此，我們在執行我們的戰略方面已經保持了相當長一段時間的勢頭。這恰恰反映出皮膚護理作為我們整體產品組合的一部分日益增長的戰略重要性。顯然，Keys Soulcare首先是作為護膚品類推出的。在e.l.f.上，我們對皮膚護理抱有厚望和計劃。

So it doesn't necessarily impact our marketing levels. We're staying consistent in that 14% to 16% overall for marketing as a percent -- marketing and digital as a percent of sales. It just reflects the reflection that skin care -- the approach to skin care is different than color cosmetics. While color cosmetics purchases are often driven by impulse and trend skin care, we're finding through our own history is really driven by efficacy and education. And so really taking that approach of really treating skin care differently than color cosmetics, I think really builds on the success that we've been having.

所以這並不一定會影響我們的營銷水平。我們將營銷和數字營銷佔銷售額的百分比保持在 14% 到 16% 之間。它只是反映了護膚——護膚的方法與彩妝不同的體現。雖然彩妝的購買往往是由衝動和流行的護膚品驅動的，但我們通過自己的歷史發現，彩妝的購買實際上是由功效和教育驅動的。因此，我認為真正採取與彩妝不同的方式對待護膚品，這確實是建立在我們所取得的成功的基礎上的。

Great. And then just on the Keys Soulcare line, you've talked about further expansion geographically coming up in the next year. Is there any time frame for launch of additional SKUs to the line?

偉大的。然後就在 Keys Soulcare 系列中，您談到了明年將進一步進行地理擴張。向該系列推出其他 SKU 是否有時間限制？

There is, Linda. We have -- Keys Soulcare is different in its approach in 2 ways. One is true lifestyle beauty brand focused on content, community and conversation. But in addition to that, it's a multi-category in scope. So we started in skin care. I think there's a piece where we announced today that our next category will be body. They'll be coming out with 3 new products in the body range. And you'll see that follow-up with additional other categories and SKUs. We have a robust innovation pipeline that you'll continue to see a stream of new product news on Keys Soulcare throughout the year.

有，琳達。我們——Keys Soulcare 的方法有兩個不同之處。第一個是真正的生活方式美容品牌，專注於內容、社區和對話。但除此之外，它的範圍也是多類別的。於是我們就開始做皮膚護理。我想我們今天在一篇文章中宣布我們的下一個類別將是身體。他們將在 Body 系列中推出 3 款新產品。您將看到後續的其他類別和 SKU。我們擁有強大的創新渠道，全年您將繼續在 Keys Soulcare 上看到一系列新產品新聞。

Great. And then, I guess, just a question on your cash flow in the fourth quarter was actually a little bit better than we had projected, and you've got a nice healthy cash balance. Is there any thought to returning to share repurchase and kind of what are your thoughts on additional acquisitions now that you've kind of relaunched the W3LL PEOPLE and gotten the Alicia Keys off the ground. What are your thoughts there?

偉大的。然後，我想，只是關於第四季度現金流的問題實際上比我們預期的要好一些，並且您擁有良好的健康現金餘額。既然您已經重新推出了 W3LL PEOPLE 並讓 Alicia Keys 起步，您是否有考慮重返股票回購，以及您對額外收購有何想法。你有什麼想法？

Linda, so on the share repurchase front, we are just backing up to just cash overall and our priorities. Our cash priorities, as we look forward, are really focused on our strategic imperatives and strategic extensions, supporting Keys Soulcare and also supporting W3LL PEOPLE. From an acquisition standpoint, we have been very thoughtful on that front with W3LL PEOPLE being our first acquisition last year. It's something that kind of -- it's on our priority list, but feel that we are -- our hands are full at this point with Keys and W3LL PEOPLE.

琳達，所以在股票回購方面，我們只是支持整體現金和我們的優先事項。正如我們所期待的，我們的現金優先事項實際上集中於我們的戰略要務和戰略擴展，支持 Keys Soulcare 並支持 W3LL PEOPLE。從收購的角度來看，我們在這方面考慮得非常周到，W3LL PEOPLE 是我們去年的第一筆收購。它是這樣的——它在我們的優先列表中，但我們感覺——我們的手上現在已經忙滿了 Keys 和 W3LL PEOPLE。

And the only other thing I would add, Linda, is when you think of strategic extensions, it's not only potential tuck-in acquisitions, it's also incubating new brands. I think the success we have with Keys Soulcare shows the capability of our team of kind of -- I think we stood up that brand in about a year's time. So we're definitely interested in enhancing kind of our product portfolio, brand portfolio with other brands that we either acquire or build in-house.

琳達，我要補充的唯一一件事是，當你想到戰略擴展時，它不僅是潛在的收購，而且還孵化新品牌。我認為我們在 Keys Soulcare 上取得的成功顯示了我們團隊的能力——我認為我們在大約一年的時間內就建立了這個品牌。因此，我們肯定有興趣通過我們收購或內部建立的其他品牌來增強我們的產品組合、品牌組合。

Our next question comes from Steph Wissink with Jefferies.

我們的下一個問題來自 Jefferies 的 Steph Wissink。

I have a question just on the sales and EBITDA growth tracking together even with the gross margin pressure. I think, Mandy, you mentioned this is the first in the 3-year target period to grow EBITDA faster than sales. If you were to see gross margins be less pressured than what your guidance embeds, is that where the source of upside likely comes from? Or do you expect to spend that back to try to drive upside to the sales line?

我有一個關於銷售和 EBITDA 增長跟踪的問題，即使毛利率面臨壓力。我想，Mandy，你提到這是 3 年目標期內 EBITDA 增長速度首次超過銷售額增長的情況。如果您發現毛利率所承受的壓力小於您的指導中所包含的壓力，那麼這可能是上漲的來源嗎？或者您是否希望將這筆錢花回來，以推動銷售線的增長？

Thanks for the question, Steph. It's always a balance. We do feel like the gross margin pressures are real. And so that's why we have pulled other levers within our toolkit to help offset some of those gross margin pressure. So the pricing that we just took focusing on the non-marketing expenses within SG&A to help deliver that 5 to 10 basis points of EBITDA leverage.

謝謝你的提問，斯蒂芬。這始終是一種平衡。我們確實認為毛利率壓力是真實存在的。因此，我們在工具包中使用了其他槓桿來幫助抵消部分毛利率壓力。因此，我們剛剛採取的定價重點是 SG&A 內的非營銷費用，以幫助實現 5 到 10 個基點的 EBITDA 槓桿。

Now as we look out and think about our long-term economic model, what we talked about was a 3-year view on that, so with EBITDA outpacing over that 3-year period. And so that's what we continue to be focused on. So I feel great that even in a year with great cost pressures, we are still talking about delivering leverage and demonstrating EBITDA growth. And we'll just take it kind of one quarter at a time as we see how things materialize.

現在，當我們展望並思考我們的長期經濟模型時，我們討論的是對此的 3 年觀點，因此 EBITDA 超過了這 3 年期間。這就是我們繼續關注的重點。因此，即使在成本壓力巨大的一年，我們仍然在談論提供槓桿並展示 EBITDA 增長，這讓我感到很高興。當我們看到事情如何實現時，我們只會一次花一個季度的時間。

And Mandy, if I could, I think you gave some specificity around Q1 mentioning that marketing was going to be up year-over-year just given that it was down below your threshold last year. Can you remind us kind of what that step function could look like year-over-year just for modeling purposes?

曼迪，如果可以的話，我認為您在第一季度給出了一些具體內容，提到營銷將同比增長，只是考慮到去年的營銷水平低於您的閾值。您能否提醒我們，僅出於建模目的，階躍函數逐年會是什麼樣子？

Sure. So let's see here. So last year, if you recall, Q1 of last year, it's kind of in the beginning of COVID, and we had really pulled back on our marketing investment. So you're going to see some step up there. Last year, our marketing investment was only 11% of sales in Q1. So we've talked about 14% to 16% for the year. So certainly expect to see a step-up there in Q1 of this year.

當然。那麼讓我們看看這裡。所以去年，如果你還記得的話，去年第一季度，那是在新冠疫情初期，我們確實撤回了營銷投資。所以你會看到那裡有一些台階。去年，我們的營銷投入僅佔第一季度銷售額的11%。所以我們討論了今年的 14% 到 16%。因此，當然預計今年第一季度會出現進步。

Our next question comes from Bill Chappell with Truist Securities.

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

Tarang, can you talk a little bit more about the decision to, I guess, walk away from the domestic manufacturing? Are you giving up anything in terms of potential gross margin expansion? Are you -- did you find cost savings elsewhere? Does that mean you're permanently going to stake in out of the domestic manufacturing? Just -- I know this project is at least a year into the process. So I was a little surprised that you're pulling the plug now.

Tarang，您能多談談我想放棄國內製造業的決定嗎？就潛在的毛利率擴張而言，您是否會放棄任何東西？您是否在其他地方找到了節省成本的方法？這是否意味著您將永久投資國內製造業？只是——我知道這個項目至少已經進行了一年。所以我對你現在取消插頭感到有點驚訝。

Yes. Well, Bill, I'd say, first and foremost, we're really happy with our overall supply chain and operations advantage we have in terms of our combination of cost, quality and speed. We had originally done the business case on the U.S. plant in Southern California, really based on 3 things: one was cost savings; two was supplier diversification; and the third was lead time reduction.

是的。嗯，比爾，我想說，首先也是最重要的是，我們對我們在成本、質量和速度方面的整體供應鍊和運營優勢感到非常滿意。我們最初針對美國南加州工廠進行了商業案例，實際上基於三件事：一是節省成本；二是節省成本。二是供應商多元化；第三是縮短交貨時間。

Now that plant had faced a number of delays related to COVID -- COVID-related delays. So by the time we're able to actually get into the engineering work, we really evaluate the cost profile of that facility relative to what we get from the rest of our supply chain and determine that it was going to take a lot more money to be able to realize its full potential.

現在，該工廠面臨著與新冠病毒相關的多次延誤——與新冠病毒相關的延誤。因此，當我們能夠真正開始工程工作時，我們會真正評估該設施相對於我們從供應鏈其他部分獲得的成本狀況，並確定將需要更多的資金來能夠充分發揮其潛力。

Now having said that, so that was an easy decision from a business standpoint of saying let's not pursue, let's not put more money into that facility relative to the advantage we have in the rest of our supply chain.

話雖如此，從商業角度來看，這是一個簡單的決定，即我們不要追求，相對於我們在供應鏈其他部分所擁有的優勢，我們不要在該設施上投入更多資金。

We remain interested, though, in diversification and lead time reduction. And so on the diversification front, as I mentioned, the same time that we face COVID-related delays on the Southern California facility, we did start-up new suppliers in both Thailand and Taiwan. That gives us diversification but still leverages the power that we have in our multifunctional team in China.

不過，我們仍然對多元化和縮短交貨時間感興趣。因此，在多元化方面，正如我所提到的，在我們南加州工廠面臨與新冠疫情相關的延誤的同時，我們在泰國和台灣都啟動了新的供應商。這使我們實現了多元化，但仍然充分利用了我們在中國的多功能團隊的力量。

And I would say, in terms of domestic manufacturing or other sources of manufacturing, we remain open as long as the business case pans out. So I'd say, we're always looking to see how we can further strengthen the advantage we have in our operations, and it just wasn't the case in that particular facility.

我想說，就國內製造業或其他製造業來源而言，只要商業案例成功，我們就會保持開放。所以我想說，我們一直在尋找如何進一步加強我們在運營中的優勢，但該特定設施的情況並非如此。

And just picture, there's no write-down or charge-off for that that I saw?

只是圖片，我看到的沒有減記或沖銷嗎？

Yes. No. Bill, we do have a restructuring charge that we took in Q4 of $2.6 million related to that closure.

是的。不。比爾，我們確實在第四季度收取了與關閉相關的 260 萬美元的重組費用。

And that was the entirety?

這就是全部嗎？

That's right.

這是正確的。

Got it. And then just switching gears on, as I look at the shelf space gains, Mandy, you said your guidance doesn't include any shelf space gains. I think I'm right in saying that the spring is more -- is a bigger time for shelf safe gains than in the fall. But if you're going to get ones in the fall, would that -- we know that over the next couple of months, is this what you're in the process of? And is there a chance that you get shelf space gains? Or are we kind of past that where you're not expecting a whole lot new in the fall and you're more just velocity of existing space?

知道了。然後，當我查看貨架空間增益時，只需切換齒輪，曼迪，你說你的指導不包括任何貨架空間增益。我認為我的說法是正確的，春季比秋季更適合貨架安全收益。但如果你打算在秋季購買，我們知道在接下來的幾個月裡，這就是你正在做的事情嗎？您是否有機會獲得貨架空間收益？或者我們是否已經過去了，你不期待秋季有很多新的東西，而你更多地只是現有空間的速度？

Yes. So we -- like I said in our prepared remarks, no indication of shelf space gains at this point. But we remain hopeful, and I believe we have a track record of getting shelf space gains each year. We just haven't baked that into our guidance because we usually will do that once we do have confirmation of such gains.

是的。因此，正如我在準備好的發言中所說，目前沒有跡象表明貨架空間有所增加。但我們仍然充滿希望，而且我相信我們每年都有增加貨架空間的記錄。我們只是沒有將其納入我們的指導中，因為一旦我們確實確認了此類收益，我們通常就會這樣做。

And the decisions, Bill, for the spring really are made a little bit later this summer. And so as Mandy says, we're quite hopeful, given the momentum that we have, not only the amount of share we grew last year, our overall productivity our innovation pipeline and consumer appeal. So we stand, I think, stronger than we've ever stood in terms of our ability to get more shelf space. We just didn't want to cloud guidance with expectations on shelf space. So it's clean from a standpoint of no space. And if we did get confirmation on more space, we'd update the guidance throughout the year.

比爾，春季的決定確實是在今年夏天晚些時候做出的。因此，正如曼迪所說，考慮到我們所擁有的勢頭，我們充滿希望，不僅是我們去年增長的份額，還有我們的整體生產力、創新渠道和消費者吸引力。因此，我認為，就獲得更多貨架空間的能力而言，我們比以往任何時候都更加強大。我們只是不想對貨架空間抱有期望的雲指導。所以從沒有空間的角度來看它是乾淨的。如果我們確實得到了更多空間的確認，我們將全年更新指南。

Our next question comes from Jon Andersen with William Blair.

我們的下一個問題來自喬恩·安德森和威廉·布萊爾。

I just have one quick one on W3LL PEOPLE. If you could talk a little bit more about your plans for W3LL PEOPLE this year. It sounds like there's been a restage that's going on. But if you could describe -- if you'll be gaining new distribution as well. I think at the time of the acquisition, one of the thesis was that you could leverage your trade relationships, particularly with national retailers to perhaps expand the distribution for that brand. So just some more color around your plans for W3LL PEOPLE this year and what kind of underpins the growth as you see it?

我只有一篇關於 W3LL PEOPLE 的快速文章。您能多談談您今年對 W3LL PEOPLE 的計劃嗎？聽起來好像正在進行重演。但如果你能描述一下——你是否也會獲得新的發行版。我認為在收購時，主題之一是你可以利用你的貿易關係，特別是與全國零售商的貿易關係，也許可以擴大該品牌的分銷。那麼，今年您對 W3LL PEOPLE 的計劃還有更多的色彩嗎？您認為增長的基礎是什麼？

Sure, Jon. So on W3LL PEOPLE, we're highly encouraged with the plans that we have. There are really 4 key focus areas. First is recharging the brand, similar to what we did with e.l.f., and you see an entirely new brand expression on W3LL PEOPLE everything from its positioning to packaging that, you'll start seeing rollout over the next few months.

當然，喬恩。因此，在 W3LL PEOPLE 上，我們對我們的計劃感到非常鼓舞。實際上有 4 個重點關注領域。首先是為品牌充電，類似於我們對e.l.f. 所做的，你會在W3LL PEOPLE 上看到一個全新的品牌表達，從定位到包裝，你將在接下來的幾個月內開始看到它的推出。

The second is innovation, really leveraging our strength in innovation and building out the product assortment on W3LL PEOPLE that you will start seeing some of those new products coming out. I'd say the third is putting it on our operating platform. So we were able to basically reformulate every single product in the W3LL PEOPLE range, move it onto our operating platform, realize significant COG savings that we put into sharper pricing and that brand recharge. And then the fourth element is distribution, and our key focus on distribution, I would say, is Target and Ulta.

第二個是創新，真正利用我們的創新優勢並在 W3LL PEOPLE 上構建產品種類，您將開始看到其中一些新產品的問世。我想說第三個是將它放在我們的操作平台上。因此，我們基本上能夠重新配製 W3LL PEOPLE 系列中的每一種產品，將其轉移到我們的操作平台上，實現顯著的 COG 節省，我們將其投入到更清晰的定價和品牌再造中。第四個要素是分銷，我想說，我們的分銷重點是 Target 和 Ulta。

Target is where the brand historically was most developed. I feel like we have further to go with Target. Ulta, we were already part of the Conscious Beauty initiative at Ulta, we'll be looking to leverage that to more space within Ulta and then other customers. So we feel great, and we're really pleased with the momentum that we're seeing right now in W3LL PEOPLE.

目標是該品牌歷史上最發達的地方。我覺得我們與塔吉特還有進一步的合作。Ulta，我們已經是 Ulta Conscious Beauty 計劃的一部分，我們將尋求利用該計劃在 Ulta 內以及其他客戶中提供更多空間。所以我們感覺很棒，我們對現在在 W3LL PEOPLE 中看到的勢頭感到非常滿意。

And the last thing I would say is W3LL PEOPLE also dramatically accelerated our own plans across e.l.f. in the clean beauty space. Keys Soulcare came out the door, fully clean. One of the founders of W3LL PEOPLE, Dr. Renee Snyder, Dermatologist, really was instrumental with the development of that brand. e.l.f. is well on its way in terms of our own clean journey. I think in the next few months, you'll see e.l.f. be 100% clean as well. So there are other benefits W3LL PEOPLE got to the company beyond kind of the growth momentum we see in that brand.

我要說的最後一件事是，W3LL PEOPLE 也極大地加快了我們自己的 e.l.f 計劃。在潔淨的美麗空間裡。Keys Soulcare從門裡出來，乾淨整潔。W3LL PEOPLE 的創始人之一、皮膚科醫生 Renee Snyder 博士對該品牌的發展發揮了重要作用。e.l.f.就我們自己的清潔之旅而言，一切進展順利。我想在接下來的幾個月裡，你會看到 e.l.f.也100%乾淨。因此，除了我們在該品牌中看到的增長動力之外，W3LL PEOPLE 還為公司帶來了其他好處。

Our next question comes from Rupesh Parikh with Oppenheimer.

我們的下一個問題來自魯佩什·帕里克和奧本海默。

So I just want to go back to your comments on the reopening. I was just curious if you're seeing anything surprising as you look at consumer behavior out there? And then as you look at elf.com, are you seeing stickiness with maybe the skin care business as now consumers maybe also buying makeup as well?

所以我只想回到你對重新開放的評論。我只是很好奇，當您觀察消費者行為時，是否發現任何令人驚訝的事情？然後，當您查看 elf.com 時，您是否會看到皮膚護理業務的粘性，因為現在消費者可能也購買化妝品？

Sure. So I'd say on the reopening, it's consistent with what we'd expect. We've long talked about as things open back up, as there's more vaccines out there, people go about their normal behavior. You'd see a resurgence in color cosmetics, and we very much are seeing that in category trends, but especially on e.l.f., where we were strong. Before, during the pandemic and now kind of coming out of it. So hopeful on the category. As I said, the category is still not where it was 2 years ago, but we like the trends we're seeing not only on e.l.f., but I'd say also in some of our key competitors. And a lot of that's driven not only by consumers coming back, but the level of innovation that's out there.

當然。所以我想說，關於重新開放，這符合我們的預期。我們長期以來一直在談論，隨著情況的恢復，隨著疫苗的增多，人們會恢復正常的行為。你會看到彩妝的複蘇，我們在品類趨勢中看到了這一點，尤其是在 e.l.f. 領域，我們在這一領域表現強勁。以前、在大流行期間以及現在正在走出大流行。對這個類別充滿希望。正如我所說，這個類別仍然不如兩年前，但我們喜歡我們不僅在 e.l.f. 上看到的趨勢，而且我想說在我們的一些主要競爭對手中也看到了這種趨勢。這在很大程度上不僅是由消費者的回歸推動的，也是由現有的創新水平推動的。

We're really pleased seeing kind of Maybelline Sky High Mascara, L'Oréal's Infallible Foundation mix has a few new items. So we like seeing that activity in the broader category. We definitely believe that will bring more consumers into the category, which is always a great thing for e.l.f..

我們非常高興看到美寶蓮 Sky High 睫毛膏、歐萊雅 Infallible 粉底組合有一些新產品。因此，我們希望在更廣泛的類別中看到該活動。我們堅信，這將吸引更多消費者進入該類別，這對於 e.l.f. 來說始終是一件好事。

And then in terms of our online business, we had real strength there all throughout the year. It was up triple digits for our last fiscal year. And one of the big drivers of it was quite a few new consumers, I think almost 70% new consumers. And so our real focus has been on retaining those consumers. I'm particularly pleased with the progress we've had on our Beauty Squad Loyalty Program, up almost 40% year-over-year in terms of total Beauty Squad Loyalty members.

然後就我們的在線業務而言，我們全年都擁有真正的實力。我們上一財年的數字增長了三位數。其主要推動力之一是相當多的新消費者，我認為幾乎 70% 的新消費者。因此，我們真正的重點是留住這些消費者。我對 Beauty Squad 忠誠度計劃所取得的進展感到特別滿意，Beauty Squad 忠誠度會員總數同比增長了近 40%。

And as I mentioned in the prepared remarks, Beauty Squad Loyalty members as well as the new consumers are definitely having a stronger affinity to skin care, which has been great for our overall basket building as well.

正如我在準備好的發言中提到的，Beauty Squad Loyalty 會員以及新消費者肯定對護膚品有更強的親和力，這對我們的整體購物籃建設也很有幫助。

Our next question comes from Mark Astrachan with Stifel.

我們的下一個問題來自 Stifel 的 Mark Astrachan。

I guess couple of directional follow-ups. One on just this whole idea of e.l.f. skin care, does that ultimately, and over time, lead to more shelf space for that, maybe even specifically within that category in terms of the placement of it sort of separation from some of the makeup products directionally kind of how do you holistically think about that?

我想有幾個方向性的後續行動。關於 e.l.f 的整個想法。護膚品最終會做到這一點，隨著時間的推移，會帶來更多的貨架空間，甚至可能特別是在該類別中，就其與某些化妝品的定向分離而言，您如何整體思考那？

And then separately on the investment spend or marketing spend for this year. So I think you said 14% to 16%. I guess, what factors drive where A&P spend finishes the year, sort of keeping in mind that you're going to be up a lot in the first quarter, so that would imply down a bit in 2Q, 3Q, 4Q? And how do you think about that? And as I said, what factors influence that? And how quickly can you change it, if you need to?

然後分別介紹今年的投資支出或營銷支出。所以我認為你說的是​​ 14% 到 16%。我想，哪些因素會影響今年的廣告及廣告支出，請記住，第一季度會大幅增長，這意味著第二季度、第三季度、第四季度會有所下降？您對此有何看法？正如我所說，哪些因素會影響這一點？如果需要的話，你能多快改變它？

Sure. So on e.l.f. skin, we definitely see expansion potential, not only in shelf space, but the number of new items. I think I've cited in prior calls that e.l.f. skin, skin care as a percentage of our portfolio in track channels, is single digits overall, I think, by 9% -- 8%, 9%. Yet on elfcosmetics.com and Amazon, it's close to 25% of our sales. And the biggest difference, if you take a look at what's going on online versus in retail, is a number of our skin care items on shelf. So we've already had a strategy even with the fall resets coming up of getting more of our skin care assortment onto retailer shelves. In addition, as we earn more space, we use that as an opportunity to increase our footprint on skin care. Both in sets where skin care is housed within the overall e.l.f. sets similar to what we do at Target or places like Ulta Beauty, where skin care is housed in the skin care department. You see opportunity in both areas, both getting more assortment in as well as increasing our space.

當然。所以關於 e.l.f.皮膚，我們肯定看到了擴張潛力，不僅在貨架空間上，而且在新商品的數量上。我想我在之前的電話會議中已經提到過 e.l.f.皮膚、護膚品占我們跟踪渠道產品組合的百分比總體上是個位數，我認為是 9% - 8%、9%。然而在 elfcosmetics.com 和亞馬遜上，它接近我們銷售額的 25%。如果你看看網上和零售店的情況，最大的區別是我們貨架上的許多護膚品。因此，即使秋季即將到來，我們也已經制定了一項策略，將更多的護膚品品種放到零售商的貨架上。此外，當我們獲得更多空間時，我們會以此為契機擴大我們在皮膚護理領域的足跡。兩者的皮膚護理都包含在整體 e.l.f. 中。與我們在 Target 或 Ulta Beauty 等地方所做的類似，皮膚護理是在皮膚護理部門進行的。您在這兩個領域都看到了機遇，既增加了產品種類，又擴大了我們的空間。

And then on the marketing side, I'll let kind of Mandy add into that. But I'd say we're comfortable with the momentum we've been able to drive with that 14% to 16%. And so the way we approach marketing is we really said it as a rate by brand. Each brand has a different percent that we're targeting for that brand, and it goes pretty much hand in hand with the sales as we go through.

然後在營銷方面，我會讓曼迪加入其中。但我想說，我們對 14% 至 16% 的增長勢頭感到滿意。因此，我們的營銷方式實際上是按品牌進行定價。每個品牌都有不同的百分比，我們為該品牌設定的目標百分比，並且它與我們經歷的銷售密切相關。

Yes. And I would just add to that, Mark, that in terms of turning it off or turning it on, because we have a completely 100% digital spend, we are able to move pretty quickly with the ebbs and flows of the business. So feel great about how we're managing that percentage over the course of the year.

是的。馬克，我想補充一點，在關閉或打開它方面，因為我們擁有完全 100% 的數字支出，所以我們能夠隨著業務的起伏而快速移動。因此，對於我們在這一年中如何管理這一百分比感到非常滿意。

Our next question is a follow-up from Andrea Teixeira with JPMorgan.

我們的下一個問題是摩根大通的 Andrea Teixeira 的後續問題。

I just want to confirm like what you said, Mandy, on the pricing. So I understand you don't want to quantify, but you said that pricing in the U.S. will be a little bit less in international. And you alluded to 2019 when you took pricing in about 1/3 of the SKUs. So how should we be thinking? And obviously, starting now in May, so part of your first quarter is not going to be positively impacted. So how can we think about magnitude of price increases in fiscal '22 that is embedded in your guide?

我只是想確認一下你所說的，曼迪，關於定價。所以我知道你不想量化，但你說美國的定價會比國際定價低一點。您提到了 2019 年，當時您對大約 1/3 的 SKU 進行了定價。那麼我們應該如何思考呢？顯然，從五月份開始，第一季度的部分時間不會受到積極影響。那麼，我們如何看待您的指南中所包含的 22 財年價格上漲幅度？

And also if you -- just another follow-up on e-commerce. So I think I understood, Tarang, correct me if I'm wrong, you said 25%, but can you quantify -- you did give us the number of Beauty Squad member growth. But if you can quantify the growth in e-commerce, that will be helpful, both bricks and your dotcom. I'm sorry, both retail.com and your own elf.com?

而且如果你——只是電子商務的另一個後續行動。所以我想我明白了，Tarang，如果我錯了請糾正我，你說的是 25%，但是你能量化一下嗎——你確實給了我們美容小隊成員增長的數量。但如果你能量化電子商務的增長，這將很有幫助，無論是磚塊還是你的網絡公司。抱歉，retail.com 和您自己的 elf.com 都可以嗎？

Yes. Okay. So I will take the pricing question. So in terms of impact, so we have talked about, again, it's small in the U.S., but broader internationally. If you think about international is roughly 11% of our business. You could assume that it's roughly the same playbook that we took when we took in 2019. We've now applied that internationally as well. So it will have some impact to the business, Andrea, but not as large of an impact as we saw when we did this pricing in 2019.

是的。好的。所以我將回答定價問題。因此，就影響而言，我們再次討論過，它在美國很小，但在國際上更廣泛。如果您考慮一下國際業務，大約占我們業務的 11%。你可以認為這與我們 2019 年拍攝時的劇本大致相同。我們現在也在國際上應用了這一點。因此，Andrea，這將對業務產生一些影響，但影響不會像我們在 2019 年進行定價時看到的那麼大。

And again, we're not going -- we're not pulling that lever as heavily because we still want to be sure that we're providing that value for our consumers. And so we're just not going to take pricing all the way up so that we maintain that balance with wanting to offset some of these FX headwinds with also delivering that value to our consumers. So we'll be able to report out on the potential impact next quarter when we report earnings, but that's how I'm thinking about it right now.

再說一次，我們不會——我們不會那麼大力地拉動槓桿，因為我們仍然希望確保我們為消費者提供這種價值。因此，我們不會一路上調價格，這樣我們就可以保持平衡，同時希望抵消一些外匯不利因素，同時為消費者帶來價值。因此，當我們報告收益時，我們將能夠在下個季度報告潛在的影響，但這就是我現在的想法。

And then on your question on our e-commerce business online, our total e-commerce business where we finished the year was about 17% of our total business and it was up triple digits. I think in the year before, e-commerce is only about roughly 9% in FY '20. It's finished the year in FY '21 at 17% of our business. So we saw definitely great growth rates there, and that growth was well balanced between elfcosmetics.com, retailer.com and Amazon. So we saw growth across all 3 of the major areas that we look at our online business on.

關於你關於我們在線電子商務業務的問題，我們今年完成的電子商務業務總量約占我們總業務的 17%，並且增長了三位數。我認為在前一年，電子商務在 20 財年僅佔 9% 左右。截至 21 財年，該業務占我們業務的 17%。因此，我們確實看到了巨大的增長率，而且 elfcosmetics.com、retailer.com 和亞馬遜之間的增長非常平衡。因此，我們看到了我們在線業務的所有三個主要領域的增長。

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

我們的問答環節到此結束。我想將電話轉回給塔朗·阿明，讓他發表結束語。

Well, thanks for joining us today. I'm so grateful for our incredible team at e.l.f. Beauty, who've collaborated to navigate the challenges of the pandemic and build our market share. I believe our future is bright and remain confident in our long-term strategy.

好的，感謝您今天加入我們。我非常感謝 e.l.f. 出色的團隊。Beauty，我們合作應對疫情的挑戰並建立了我們的市場份額。我相信我們的未來是光明的，並對我們的長期戰略充滿信心。

We look forward to seeing some of you at the upcoming William Blair and Piper Sandler conferences and speaking with you in August when we'll discuss our fourth quarter results. Thank you, and be well.

我們期待在即將舉行的 William Blair 和 Piper Sandler 會議上見到你們，並在 8 月份與你們交談，屆時我們將討論我們的第四季度業績。謝謝你，祝你一切順利。

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

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。