elf Beauty Inc (ELF) 2021 Q3 法說會逐字稿

Thank you for joining us today to discuss e.l.f. Beauty's Third Quarter Fiscal 2021 results. I'm KC 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 2021 財年第三季度業績。我是 KC 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. 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. I hope that you're staying safe and well.

謝謝你，KC，大家下午好。我希望您一切安好。

Today, I will discuss the drivers behind our Q3 results, our growth opportunities and our overall strategic framework. I am proud of our team for delivering our eighth consecutive quarter of net sales growth as we continue to navigate major category headwinds as a result of COVID-19.

今天，我將討論第三季度業績背後的驅動因素、增長機會和整體戰略框架。我為我們的團隊實現了連續第八個季度的淨銷售額增長感到自豪，因為我們繼續應對因 COVID-19 造成的主要品類逆風。

We delivered Q3 net sales of $89 million, up 10% versus a year ago, and adjusted EBITDA of $18 million. We continue to gain market share while advancing our transformation to a multi-brand portfolio. We're also raising our full year guidance, reflecting a shift in some orders from Q3 to Q4 and continued business momentum.

第三季度淨銷售額為 8900 萬美元，比去年同期增長 10%，調整後 EBITDA 為 1800 萬美元。我們繼續獲得市場份額，同時推進向多品牌組合的轉型。我們還提高了全年指導，反映出一些訂單從第三季度到第四季度的轉變以及持續的業務勢頭。

Before Mandy details our results, I want to share the key pillars underpinning our performance. Our strategy is working. We came into this volatile period from a position of strength. Our superpowers that center on our ability to deliver 100% cruelty-free, premium quality beauty products at accessible price points with universal appeal continue to resonate with consumers. Our outperformance relative to the category reflects the strength of our business model and a relentless focus on our 5 strategic imperatives.

在曼迪詳細介紹我們的結果之前，我想先分享一下支撐我們業績的關鍵支柱。我們的策略正在發揮作用。我們在進入這個動盪時期時處於強勢地位。我們的超能力集中於我們能夠以平易近人的價格提供具有普遍吸引力的 100% 零殘忍、優質美容產品，繼續引起消費者的共鳴。我們相對於該類別的優異表現反映了我們業務模式的優勢以及對 5 項戰略要務的不懈關注。

Let me provide a few highlights from the quarter. Our first strategic imperative is to drive brand demand. We continue to leverage our digital-first marketing engine to drive greater brand relevance and expand our consumer reach. Our brand-building efforts are working as we continue to significantly outperform our competition. e.l.f. grew the most share in the quarter, with 5.9% of the market, up 100 basis points year-over-year. e.l.f.'s social audience continues to grow double digits, with over 9 million followers across our digital ecosystem. Our earned media value was up 16% compared to the prior year, and we're the only brand growing in our competitive set.

讓我提供本季度的一些亮點。我們的首要戰略任務是推動品牌需求。我們繼續利用我們的數字優先營銷引擎來提高品牌相關性並擴大我們的消費者覆蓋範圍。我們的品牌建設努力正在發揮作用，我們將繼續顯著超越競爭對手。 e.l.f.本季度份額增長最多，市場份額為 5.9%，同比增長 100 個基點。 e.l.f. 的社交受眾繼續以兩位數增長，在我們的數字生態系統中擁有超過 900 萬粉絲。與上一年相比，我們的贏得媒體價值增長了 16%，並且我們是競爭對手中唯一增長的品牌。

We're continuing to disrupt the beauty space as we test and learn on new frontiers. We are proud to be one of the first beauty companies to establish a presence on Twitch, the world's leading live streaming gaming platform. In November, we announced a collaboration with Loserfruit, also known as Lufu, who has the second largest Twitch following for a female gamer. Lufu is providing her audience, both female and male, with engaging platform-native content that promotes self-care and self-expression while integrating her favorite e.l.f. products.

當我們在新領域進行測試和學習時，我們將繼續顛覆美容領域。我們很榮幸成為首批在全球領先的直播遊戲平台 Twitch 上開展業務的美容公司之一。 11 月，我們宣布與 Loserfruit（也稱為 Lufu）合作，Loserfruit 擁有第二大 Twitch 女性玩家粉絲。 Lufu 為她的女性和男性觀眾提供引人入勝的平台原生內容，促進自我保健和自我表達，同時將她最喜歡的精靈融入其中。產品。

In yet another beauty industry milestone, we were the first beauty brand to launch a campaign on Triller, an emerging music video-making platform. We created a 5-track holiday album called e.l.f. the Hauls, which featured up and coming artists remixing holiday classics. We made beauty and music industry history, with 4 of our songs making the U.S. and Global Billboard's Triller Top 20 list.

這是美容行業的另一個里程碑，我們是第一個在新興音樂視頻製作平台 Triller 上發起活動的美容品牌。我們製作了一張包含 5 首歌曲的假日專輯，名為 e.l.f. the Hauls，其中有新晉藝術家重新混合假日經典。我們創造了美容和音樂行業的歷史，我們的 4 首歌曲躋身美國和全球公告牌 Triller 排行榜前 20 名。

Our brand-building efforts continue to win awards. This quarter, Women's Wear Daily recognized us as a newsmaker of the year. Ad Age named us one of the top 10 marketers of the year. We're the only beauty brand on the Ad Age list, putting e.l.f. in admirable company with TikTok, McDonald's and LEGO, among others.

我們的品牌建設努力不斷獲獎。本季度，《女裝日報》將我們評為年度新聞人物。 《廣告時代》將我們評為年度十大營銷商之一。我們是廣告時代榜單上唯一的美容品牌，將 e.l.f.與 TikTok、麥當勞和樂高等公司合作令人欽佩。

This quarter, we took an important step in our transformation to a multi-brand portfolio with the launch of our first ritual for Keys Soulcare, our groundbreaking new lifestyle beauty brand with Alicia Keys. In December, we launched The Goddess Ritual on keyssoulcare.com and ulta.com, which included 3 product offerings: a Sage + Oat Milk Candle, Skin Transformation Cream and Obsidian Facial Roller. We expanded the collection in January to include 6 dermatologist-developed clean skincare offerings.

本季度，我們在向多品牌組合轉型方面邁出了重要一步，推出了 Keys Soulcare 的首個儀式，這是我們與 Alicia Keys 合作的突破性新生活方式美容品牌。 12 月，我們在keysoulcare.com 和ulta.com 上推出了The Goddess Ritual，其中包括3 種產品：鼠尾草+燕麥牛奶蠟燭、皮膚轉化霜和黑曜石面部滾輪。我們在一月份擴大了產品系列，加入了 6 種皮膚科醫生開發的清潔護膚產品。

Keys Soulcare is off to a great start, and we're encouraged by the recognition the brand is receiving with over 10 billion global press impressions since launch. The brand has been further amplified by Alicia's almost 100 million social media followers. Alicia is truly an inspiration to so many, and we believe her passion for bringing light into the world will resonate with a broad set of global consumers.

Keys Soulcare 有了一個良好的開端，自推出以來該品牌獲得了超過 100 億次全球媒體印象，我們對此感到鼓舞。 Alicia 近 1 億社交媒體粉絲進一步放大了該品牌。艾麗西亞確實激勵了很多人，我們相信她為世界帶來光明的熱情將引起廣大全球消費者的共鳴。

Looking to W3LL PEOPLE, our plant-powered clean beauty brand, we are continuing to execute our brand recharge to broaden consumer awareness. We are bringing the recharge to life at shelf with new visual merchandising across our key retail partners.

對於我們的植物清潔美容品牌 W3LL PEOPLE，我們將繼續進行品牌更新，以擴大消費者的認知度。我們通過主要零售合作夥伴的新視覺營銷，讓貨架上的充電變得栩栩如生。

Our second strategic imperative is a major step-up in digital. Digital consumption remains strong, up nearly triple digits year-to-date, with strength across elfcosmetics.com, retailer dot-coms and Amazon. Digital channels expanded to 16% of our total business this quarter, up from 10% a year ago. On elfcosmetics.com, approximately 60% of our shoppers were new consumers. We're encouraged to see these consumers over-indexing on skincare and signing up for our Beauty Squad Loyalty Program.

我們的第二個戰略要務是數字化方面的重大進步。數字消費依然強勁，今年迄今增長了近三位數，elfcosmetics.com、零售商網絡公司和亞馬遜的表現強勁。本季度數字渠道占我們總業務的比例從一年前的 10% 擴大到 16%。在 elfcosmetics.com 上，大約 60% 的購物者是新消費者。我們很高興看到這些消費者過度關注護膚品並註冊我們的 Beauty Squad 忠誠計劃。

Beauty Squad now has almost 2.3 million members, up 40% year-over-year. Our loyalty members collectively drive almost 70% of our sales on elfcosmetics.com. This quarter, we offered our Beauty Squad loyalty members exclusive early access to our holiday kits and new product innovation, which helped drive sign-ups for the program. Building from the e.l.f. playbook, Keys Soulcare utilizes a digital-first strategy with our initial product rituals launching online. Keys Soulcare aims to transform the way the world engages with beauty with a focus on content, conversation and community. Keyssoulcare.com features rich editorial content and a weekly e-mail newsletter with inspirational story from Alicia's community of lightworkers. The brand's community is active, vocal and passionate about Alicia, our philosophy and our product offerings. Instagram engagement metrics are trending well above platform averages, and we're pleased with the strong open rates for our weekly newsletters.

Beauty Squad 目前擁有近 230 萬名會員，同比增長 40%。我們的忠誠會員共同推動了 elfcosmetics.com 銷售額的近 70%。本季度，我們為 Beauty Squad 忠誠會員提供獨家搶先體驗我們的節日套裝和新產品創新的機會，這有助於推動該計劃的註冊。從 e.l.f. 開始建造劇本《Keys Soulcare》採用數字優先戰略，我們的初始產品儀式在線推出。 Keys Soulcare 旨在改變世界與美接觸的方式，重點關注內容、對話和社區。 Keyssoulcare.com 擁有豐富的社論內容和每週電子郵件通訊，其中包含艾麗西亞光之工作者社區的勵志故事。該品牌的社區非常活躍，對 Alicia、我們的理念和我們的產品充滿熱情和熱情。 Instagram 參與度指標的趨勢遠高於平台平均水平，我們對每週時事通訊的強勁打開率感到滿意。

Our third strategic imperative centers on innovation. With our e.l.f. brand, we saw continued success this quarter in our core segments: brushes, primers, concealers, brows and sponges, which make up approximately half of our sales. We have the #1 or 2 position in all 5 segments and continue to drive market share gains in each.

我們的第三個戰略要務是創新。和我們的 e.l.f.品牌，本季度我們在核心領域取得了持續成功：刷子、底漆、遮瑕膏、眉毛和海綿，它們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, our innovation engine and flow of new products continues to resonate with consumers. Building on the success of our camo concealer franchise, we launched Camo CC Cream last month to broaden our offerings in foundation, which is almost 3x larger than the concealer category. Our Camo CC Cream at $14 offers an incredible value for consumers, especially as compared to a prestige equivalent at $40. We believe Camo CC will be our next holy grail product.

除了我們的核心細分市場之外，我們的創新引擎和新產品流繼續引起消費者的共鳴。基於我們迷彩遮瑕膏系列的成功，我們上個月推出了迷彩 CC 霜，以擴大我們的粉底產品範圍，其產品範圍幾乎是遮瑕膏類別的 3 倍。我們的迷彩 CC 霜售價 14 美元，為消費者提供了令人難以置信的價值，特別是與售價 40 美元的知名同等產品相比。我們相信 Camo CC 將成為我們的下一個聖杯產品。

We also launched a new limited edition Mint Melt collection. This refreshing line of 5 new cosmetics products and 3 skincare products is just one example of how we're driving differentiation with our retail partners. The collection is available on elfcosmetics.com and exclusively with Walmart in the U.S. and with Superdrug in the U.K.

我們還推出了全新限量版 Mint Melt 系列。這個由 5 種新化妝品和 3 種護膚品組成的令人耳目一新的系列只是我們如何與零售合作夥伴推動差異化的一個例子。該系列在 elfcosmetics.com 上有售，並在美國沃爾瑪和英國 Superdrug 獨家發售。

Skincare remains a major focus. Consumption for the quarter was up 17% in tracked channels versus a category that was down 5%. We see a lot of runway in this category. For perspective, skincare represents 8% of our tracked channel consumption, yet drives nearly 25% of our business on elfcosmetics.com and Amazon. Recent skincare innovation includes a makeup melting cleansing balm, daily cleanser and eye cream, all building on the success of our Holy Hydration franchise. Keys Soulcare launched its skincare collection in January and further fuels our momentum in this category. The collection includes 9 product offerings with dermatologist-developed clean formulas, skin-nourishing ingredients and soul-nurturing rituals. Early consumer favorites include the Harmony Mask and Comforting Balm.

護膚仍然是主要關注點。本季度跟踪渠道的消費量增長了 17%，而其他類別的消費量則下降了 5%。我們在這個類別中看到了很多跑道。從長遠來看，護膚品占我們跟踪的渠道消費的 8%，但卻推動了我們在 elfcosmetics.com 和亞馬遜上近 25% 的業務。最近的護膚創新包括溶妝潔面膏、日常潔面乳和眼霜，所有這些都建立在我們 Holy Hydration 特許經營的成功基礎上。 Keys Soulcare 一月份推出了護膚系列，進一步推動了我們在這一類別的發展勢頭。該系列包括 9 種產品，均採用皮膚科醫生開發的清潔配方、滋養肌膚的成分和滋養靈魂的儀式。早期消費者最喜愛的產品包括 Harmony Mask 和 Comforting Balm。

Our fourth strategic imperative is driving productivity with our national retail partners. Project Unicorn, our ongoing initiative to drive productivity by improving assortment, presentation and navigation at shelf, continues to impress. We're also excited about the sustainability milestone we achieved. Project Unicorn reduced an estimated 650,000 pounds of excess packaging across over 200 SKUs. We're just getting started on our sustainability journey, and we'll continue to push to reduce our packaging footprint.

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。 “獨角獸計劃”是我們正在進行的一項舉措，旨在通過改善貨架的分類、展示和導航來提高生產力，這一舉措繼續給人留下深刻印象。我們也對我們實現的可持續發展里程碑感到興奮。 Project Unicorn 預計減少了 200 多個 SKU 的 650,000 磅多餘包裝。我們的可持續發展之旅才剛剛開始，我們將繼續努力減少包裝足跡。

Given the strength of our productivity, innovation and consumer engagement, we've earned space expansion for the e.l.f. brand. In fall 2020, we expanded shelf space in a subset of Walmart and Ulta Beauty doors. In spring 2021, we're expanding even further at Ulta. Internationally, where we have a lot of white space, we recently launched at Shoppers Drug Mart, a leading beauty retailer in Canada; and Nykaa, a leading beauty retailer in India.

鑑於我們的生產力、創新能力和消費者參與度，我們為 e.l.f. 贏得了空間擴張。品牌。 2020 年秋季，我們擴大了沃爾瑪和 Ulta Beauty 部分門店的貨架空間。 2021 年春季，我們將在 Ulta 進一步擴張。在國際上，我們有很多空白，最近我們在加拿大領先的美容零售商 Shoppers Drug Mart 推出了產品；以及印度領先的美容零售商 Nykaa。

Looking to Keys Soulcare, our global retail strategy will light up in a much bigger way in the coming months. This spring, our product offerings will be available in 29 countries on keyssoulcare.com, in U.S. stores at Ulta Beauty, in the U.K. at Cult Beauty and in 8 countries across the EU at Douglas.

展望 Keys Soulcare，我們的全球零售戰略將在未來幾個月內以更大的方式發揮作用。今年春天，我們的產品將在 29 個國家的 keysoulcare.com、美國的 Ulta Beauty 商店、英國的 Cult Beauty 以及歐盟 8 個國家的 Douglas 商店出售。

Our fifth strategic imperative is delivering cost savings to help fuel brand investments. Over the last 6 years, we've expanded gross margins from 47% to approximately 64% while navigating 25% tariffs on the majority of our products. This has enabled us to fund incremental investments behind our brand and infrastructure. Mandy spoke last quarter about the FX headwinds to our gross margin that we expect starting in Q4. We are pulling levers to help mitigate a portion of the impact of FX, including through pricing and supplier concessions.

我們的第五個戰略要務是節省成本，以幫助推動品牌投資。在過去 6 年裡，我們的毛利率從 47% 擴大到約 64%，同時對大多數產品徵收 25% 的關稅。這使我們能夠為我們的品牌和基礎設施背後的增量投資提供資金。曼迪上季度談到了外匯對我們毛利率的不利影響，我們預計從第四季度開始。我們正在採取措施，幫助減輕外彙的部分影響，包括通過定價和供應商讓步。

We also have an increased focus on SG&A leverage as we move into fiscal 2022. In other operational matters, we successfully resolved the systems migration issue at our distribution center that we spoke about last quarter. We're now operating under a new warehouse management system and have improved both our throughput and shipments to our retail partners. The progress in our 5 strategic imperatives has been terrific, and we believe we're still in the early innings with each.

隨著進入 2022 財年，我們還更加關注 SG&A 槓桿。在其他運營問題上，我們成功解決了上季度談到的配送中心的系統遷移問題。我們現在在新的倉庫管理系統下運營，並提高了我們的吞吐量和對零售合作夥伴的發貨量。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 our strategic framework and why I'm optimistic about the future of our brand portfolio. Each of our brands is positioned to touch diverse consumer cohorts at different price points. All 3 brands are accessible relative to their competitive set and fulfill our mission of making the best of beauty accessible to every eye, lip and face. Importantly, all 3 brands are complementary and highly incremental to the e.l.f. Beauty platform.

在將電話轉給 Mandy 之前，讓我對我們的戰略框架以及為什麼我對我們品牌組合的未來持樂觀態度提供更多看法。我們的每個品牌都定位於以不同的價位接觸不同的消費者群體。相對於其競爭產品系列而言，所有 3 個品牌均易於使用，並履行我們的使命：讓每個眼睛、嘴唇和臉部都能享受到最好的美麗。重要的是，這三個品牌都是 e.l.f. 的補充和高度增量。美容平台。

Looking ahead, we believe the color cosmetics category will return to growth given the major role cosmetics play in consumer self-expression. We remain focused on growing share regardless of category trends. We were strong entering the pandemic. And our digital strength, 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.

展望未來，鑑於化妝品在消費者自我表達中發揮的重要作用，我們相信彩妝品類將恢復增長。無論類別趨勢如何，我們仍然專注於增加份額。我們堅強地進入了大流行。我們的數字實力、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. Today, I'll cover our Q3 financial results and raised fiscal 2021 outlook.

謝謝你，塔朗。今天，我將介紹我們第三季度的財務業績並上調 ​​2021 財年展望。

We delivered Q3 net sales of $89 million, up 10% from a year ago. This growth was mainly fueled by ongoing strength across e-commerce, international and national retailers. We also experienced a shift in order timing from December into January. While timing shifts happen in the ordinary course, this instance resulted in lower net sales, and thus, lower adjusted EBITDA than we originally expected in Q3. As you will note by our increased guidance, we expect to recapture those orders and enjoy further strength in Q4.

我們第三季度的淨銷售額為 8900 萬美元，比去年同期增長 10%。這一增長主要得益於電子商務、國際和國內零售商的持續增長。我們還經歷了訂單時間從 12 月到 1 月的轉變。雖然時間變化在正常情況下會發生，但這種情況導致淨銷售額下降，因此調整後的 EBITDA 低於我們最初預期的第三季度。正如您將注意到的，我們增加了指引，我們預計將重新獲得這些訂單，並在第四季度享受進一步的優勢。

Gross margin of 64% was down approximately 50 basis points compared to prior year. Similar to the last several quarters, we saw gross margin benefits from margin accretive product mix, cost savings and a mix shift to elfcosmetics.com. We also benefited from FX, although less so relative to prior quarters as we started to feel the impact of changing FX rates. Offsetting these benefits were certain costs related to retailer activity and space expansion.

毛利率為 64%，比上年下降約 50 個基點。與過去幾個季度類似，我們看到毛利率受益於利潤增長的產品組合、成本節約以及向 elfcosmetics.com 的組合轉移。我們也從外匯中受益，儘管與前幾個季度相比有所減少，因為我們開始感受到匯率變化的影響。與零售商活動和空間擴張相關的某些成本抵消了這些好處。

On an adjusted basis, SG&A as a percentage of sales was 49% compared to 44% 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 quarter was approximately 15% of net sales versus 12% a year ago.

調整後，SG&A 佔銷售額的百分比為 49%，而去年為 44%，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增加與較高的電子商務量相關的運營成本。本季度的營銷和數字投資約占淨銷售額的 15%，而去年同期為 12%。

Q3 adjusted EBITDA was $18 million, down 14% to last year. And adjusted EBITDA margin was approximately 21% of net sales. Adjusted net income was $12 million or $0.22 per diluted share compared to $12 million or $0.24 per diluted share a year ago.

第三季度調整後 EBITDA 為 1800 萬美元，比去年下降 14%。調整後的 EBITDA 利潤率約為淨銷售額的 21%。調整後淨利潤為 1200 萬美元，即稀釋後每股收益 0.22 美元，而一年前為 1200 萬美元，即稀釋後每股收益 0.24 美元。

Our liquidity remains strong with the combination of our cash balance and access to our revolving credit facility sitting at approximately $85 million. We ended the quarter with $35 million in cash on hand compared to a cash balance of $75 million a year ago. Our ending inventory balance was higher on a year-over-year basis, as planned, and is expected to remain at higher levels through March. This is largely due to the addition of Keys Soulcare and W3LL PEOPLE, planned space expansion and new distribution for e.l.f. and higher product costs as a result of mix and changing FX rates. The timing shift in orders I mentioned earlier also added to our inventory levels at quarter end. We are comfortable with our inventory levels and believe we have what we need to support our ongoing business momentum. We expect our cash priorities for the balance of the year to remain focused on investing behind our 5 strategic imperatives, supporting the launch of Keys Soulcare and our W3LL PEOPLE brand recharge.

我們的現金餘額和循環信貸額度約為 8500 萬美元，流動性依然強勁。本季度結束時，我們手頭現金為 3500 萬美元，而一年前的現金餘額為 7500 萬美元。我們的期末庫存餘額按計劃同比增加，預計整個 3 月份將保持在較高水平。這主要是由於 Keys Soulcare 和 W3LL PEOPLE 的加入、計劃的空間擴張以及 e.l.f. 的新發行。由於混合和匯率變化而導致更高的產品成本。我之前提到的訂單時間變化也增加了我們季度末的庫存水平。我們對庫存水平感到滿意，並相信我們有足夠的資源來支持我們持續的業務發展勢頭。我們預計今年剩餘時間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，支持 Keys Soulcare 的推出和我們的 W3LL PEOPLE 品牌再充值。

Now let's turn to our outlook for fiscal 2021. We are raising guidance for full year fiscal 2021. We now expect net sales growth of approximately 7% to 9% versus fiscal 2020, up from 5% to 7% previously. We expect adjusted EBITDA between $59 million and $60 million as compared to $57 million to $60 million previously, adjusted net income between $33 million and $34 million as compared to $31 million to $33 million previously, and adjusted EPS of $0.63 to $0.64 per diluted share as compared to $0.59 to $0.63 per diluted share previously.

現在讓我們轉向對 2021 財年的展望。我們正在上調 2021 財年全年指引。我們現在預計淨銷售額較 2020 財年增長約 7% 至 9%，高於之前的 5% 至 7%。我們預計調整後的EBITDA 將在5900 萬美元至6000 萬美元之間，而之前為5700 萬美元至6000 萬美元，調整後淨利潤將在3300 萬美元至3400 萬美元之間，而之前為3100 萬美元至3300 萬美元，調整後每股稀釋每股收益為0.63 美元至0.64 美元。之前稀釋後每股 0.59 美元至 0.63 美元。

Let me provide you with a little more color on our planning assumptions for the remainder of our fiscal year, starting with the top line. Our raised top line outlook reflects our continued business momentum, the potential benefits from stimulus-related spending and the timing shift in orders from Q3. We still anticipate a modest net sales contribution in fiscal 2021 from the launch of Keys Soulcare.

讓我從營收開始，為您提供更多有關我們本財年剩餘時間的規劃假設的信息。我們上調的營收預期反映了我們持續的業務勢頭、刺激相關支出的潛在收益以及第三季度訂單的時間變化。我們仍然預計 Keys Soulcare 的推出將對 2021 財年的淨銷售額貢獻不大。

We continue to be mindful of the ongoing uncertainty around COVID-19 and the general economic environment. As a reminder, in Q4, we also faced tougher year-over-year comparisons as we anniversary 16% sales growth last year as well as less incremental merchandising on a year-over-year basis in Target.

我們繼續關注 COVID-19 和總體經濟環境持續存在的不確定性。提醒一下，在第四季度，我們還面臨著更嚴峻的同比比較，因為我們去年的銷售額增長了 16%，而且塔吉特的銷售增量同比減少。

Turning now to adjusted EBITDA. Our guidance implies adjusted EBITDA margin in the 19% to 20% range for the year, approximately in line with our prior outlook. Within that, we expect several of our underlying gross margin drivers to remain intact, including margin accretive product mix and a favorable mix shift to elfcosmetics.com. Partially offsetting those factors is a combination of unfavorable FX rate trends as well as an incremental $5 million to $6 million in Keys Soulcare-related marketing spend that is largely concentrated in Q4.

現在轉向調整後的 EBITDA。我們的指導意味著今年調整後的 EBITDA 利潤率在 19% 至 20% 範圍內，大致與我們之前的預期一致。其中，我們預計幾個潛在的毛利率驅動因素將保持不變，包括利潤增長的產品組合和向 elfcosmetics.com 的有利組合轉移。不利的匯率趨勢以及主要集中在第四季度的 Keys Soulcare 相關營銷支出增加 500 萬至 600 萬美元，部分抵消了這些因素。

As Tarang mentioned, we are pulling levers to help partially mitigate the impact of FX into fiscal 2022, including select price increases and cost savings. We also have an increased focus on SG&A leverage as we move into fiscal 2022.

正如 Tarang 提到的，我們正在採取措施，幫助部分減輕外匯對 2022 財年的影響，包括選擇性提價和節省成本。隨著進入 2022 財年，我們還更加關注 SG&A 槓桿。

Let me now take a step back to talk about our long-term economic model. With fiscal 2021 as the base, as we look out over the next 3 years, we continue to believe in our long-term economic model, targeting compounded annual top line growth in the mid to high single digits, with adjusted EBITDA growth outpacing net sales growth over that horizon. Our performance over the last 8 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.

現在讓我退一步談談我們的長期經濟模式。以 2021 財年為基礎，展望未來 3 年，我們繼續相信我們的長期經濟模式，目標是實現中高個位數的複合年度營收增長，調整後 EBITDA 增長超過淨銷售額超過這個地平線的增長。我們過去 8 個季度的絕對錶現和相對類別表現都表明我們的 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 our first question today will come from Andrea Teixeira with JPMorgan.

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

It's actually Kojo on for Andrea. We just want to dig a little bit deeper -- so we just want to dig a little bit deeper on distribution. So we're just wondering if you guys could update us a little bit about the distribution gains that you guys have seen recently and if they came in as expected. And then if possible, if you could describe sort of your expectation of what those distribution gains should have on your sales growth.

實際上是 Kojo 為 Andrea 代言。我們只想更深入地挖掘一點——所以我們只想更深入地挖掘分佈。因此，我們只是想知道你們是否可以向我們介紹一下你們最近看到的分配收益的最新情況，以及它們是否按預期實現。然後，如果可能的話，您能否描述一下您對這些分銷收益對銷售增長有何影響的預期。

Sure. So we're pleased with our distribution progress. We mentioned last fall picking up more space at Walmart and Ulta Beauty. In our spring sets, we've picked up additional space for the e.l.f. brand at Ulta Beauty. We've also picked up distribution at Shoppers Drug Mart in Canada as well as Nykaa in India online. Those are the primary beneficiaries on e.l.f. In addition, we picked up space related to W3LL PEOPLE in Ulta Beauty as part of their Conscious Beauty initiative. And Keys Soulcare, while the launch has been online and digital first, both on keyssoulcare.com and ulta.com, you're starting to see us expand distribution on that brand as well. Earlier this month, we started up global ship, which allows us to serve 29 countries with Keys Soulcare. We also talked about being at Cult Beauty in the U.K. for that distribution. And we announced on this call that we'll also be entering Douglas in Europe in 8 different countries and European market as well. So we feel pleased of our distribution progress. It's also one of the things that raised our guidance and the confidence that we have in it in terms of the continued momentum that we have.

當然。因此，我們對發行進度感到滿意。我們去年秋天提到過在沃爾瑪和 Ulta Beauty 獲得更多空間。在我們的春季系列中，我們為 e.l.f. 預留了額外的空間。 Ulta Beauty 的品牌。我們還在加拿大的 Shoppers Drug Mart 和印度的 Nykaa 在線進行了分銷。這些是 e.l.f. 的主要受益者。此外，我們還在 Ulta Beauty 中挑選了與 W3LL PEOPLE 相關的空間，作為他們 Conscious Beauty 計劃的一部分。還有 Keys Soulcare，雖然首先在 keysoulcare.com 和 ulta.com 上以在線和數字方式發布，但您也開始看到我們擴大了該品牌的分銷範圍。本月早些時候，我們啟動了全球運輸，這使我們能夠通過 Keys Soulcare 為 29 個國家/地區提供服務。我們還討論了在英國 Cult Beauty 進行發行的事宜。我們在這次電話會議上宣布，我們還將進入歐洲 8 個不同國家的道格拉斯以及歐洲市場。因此，我們對我們的分銷進展感到高興。這也是提高我們的指導和我們對持續發展勢頭的信心的因素之一。

And our next question will come from Dara Mohsenian with Morgan Stanley.

我們的下一個問題將由摩根士丹利的 Dara Mohsenian 提出。

So you've had very strong market share performance for a couple of years now in the U.S. Just given the unique nature of COVID and as we come out of this COVID and cycle easier comparisons from a category perspective in calendar 2021, can you discuss if you think the key market share drivers are still in place and you should see continued robust share expansion going forward post-COVID? Just any sort of key differences post-COVID that might compromise your ability to continue to gain share at the levels we've been seeing recently.

因此，幾年來，你們在美國的市場份額表現非常強勁。考慮到新冠病毒的獨特性，當我們擺脫新冠病毒的影響，並在2021 年日曆中從類別角度進行更簡單的比較時，您能否討論一下：您認為關鍵的市場份額驅動因素仍然存在，您應該會看到新冠疫情過後份額持續強勁擴張？在新冠疫情之後，任何類型的關鍵差異都可能會損害您繼續以我們最近看到的水平獲得市場份額的能力。

Sure. So we entered the pandemic from a position of strength. We were already gaining share through executing the 5 strategic imperatives. Through the pandemic, we've continued to execute those 5 strategic imperatives, and I think our overall value proposition clearly shined through. We feel even coming out of the pandemic, we are going to be even stronger. We have a more robust brand portfolio, not only the momentum that we have in e.l.f. Beauty, but also W3LL PEOPLE and Keys Soulcare. So we feel we're even better positioned coming out of the pandemic.

當然。因此，我們在這場大流行中處於強勢地位。通過執行 5 項戰略要務，我們已經贏得了市場份額。在疫情期間，我們繼續執行這 5 項戰略要務，我認為我們的整體價值主張清晰可見。我們覺得，即使走出了大流行，我們也會變得更加強大。我們擁有更強大的品牌組合，不僅僅是 e.l.f. 的勢頭。美容，還有 W3LL PEOPLE 和 Keys Soulcare。因此，我們認為，走出疫情后，我們的處境更加有利。

And the one thing that we feel will really aid us is, we've been doing all of this, even our 10% net sales growth this quarter, in the construct of a category that's down 20%. So we believe as the category comes back, which I absolutely believe it will given people's restrictions right now in being able to kind of get out and express themselves, that headwind that we've had from a category standpoint becomes a tailwind. So our intent is to continue to gain share regardless of where the market is and continue by executing not only our strategic imperatives, but this brand portfolio that we have.

我們認為真正對我們有幫助的一件事是，我們一直在做這一切，甚至本季度的淨銷售額增長了 10%，但其類別卻下降了 20%。因此，我們相信，隨著該類別的回歸，我絕對相信這將限制人們現在能夠走出去並表達自己，從類別的角度來看，我們所遇到的逆風變成了順風。因此，我們的目的是無論市場在哪裡，都繼續獲得份額，並繼續執行我們的戰略要務，以及我們擁有的品牌組合。

Great. And then in the scanner data in the U.S., in December, we saw a bit of a slowdown sequentially versus the prior couple of months. Was that more just a tracked channel phenomenon and maybe the untracked channels picked up, so the total results were still solid? Just trying to sort of understand that performance, particularly with a pickup post-December so far in January. So perhaps some commentary on overall trends and if you were seeing any shift to untracked during that period.

偉大的。然後，在 12 月份美國的掃描儀數據中，我們看到與前幾個月相比略有放緩。這是否只是一種跟踪通道現象，也許未跟踪通道也出現了，所以總結果仍然可靠？只是想了解一下這種表現，尤其是 12 月後至今 1 月份的回升。因此，也許可以對總體趨勢進行一些評論，以及在此期間您是否看到任何未跟踪的轉變。

Sure. So I would say that Nielsen tracked channel data overall has been quite volatile, a little bit up and down as we've seen over the weeks. And so what you saw in December, I think, was just kind of a normal, what you're seeing in physical retail, a little bit of a pullback. We continue to see strength in e-commerce, and which is why you see us delivering a positive 10% for Q3, inclusive of the month of December.

當然。所以我想說，尼爾森跟踪的渠道數據總體上相當不穩定，正如我們幾週來所看到的那樣，有一點上下。因此，我認為，你在 12 月看到的情況只是一種正常情況，你在實體零售中看到的情況，有一點回調。我們繼續看到電子商務的強勁勢頭，這就是為什麼我們在第三季度（包括 12 月份）實現了 10% 的正增長。

I would say as we looked into January, that lift that we saw definitely included a little bit of an impact from the stimulus that was rolled out. And so if you recall, last summer, when stimulus rolled out, we did see a few weeks of -- 6 to 8 weeks, I would call it, of upside there. I think you saw a little bit of that in January. But also, I think you're seeing just our business momentum, core business momentum reflected as we've gotten into January.

我想說，當我們回顧一月份時，我們看到的這種提升肯定包括了推出的刺激措施的一些影響。所以，如果你還記得，去年夏天，當刺激計劃推出時，我們確實看到了幾週——我稱之為六到八週的上漲空間。我想你在一月份就看到了一些這樣的情況。而且，我認為您看到的只是我們的業務勢頭，核心業務勢頭在我們進入一月份時反映出來。

And our next question will come from Steph Wissink with Jefferies.

我們的下一個問題將由杰弗里斯的斯蒂芬·維辛克提出。

Tarang, I want to come back to a comment you made in your prepared remarks about SG&A leverage in fiscal '22. I think that would mark maybe the first year of leverage in a number of years. So maybe share with us a little bit what's behind that comment. Is it the fact that multiyear investments are coming to completion or something that you're seeing within your business mix that is giving you conviction in the ability to lever that line item?

Tarang，我想回到您在準備好的關於 22 財年 SG&A 槓桿的評論中發表的評論。我認為這可能是多年來槓桿率的第一年。所以也許可以與我們分享一下該評論背後的內容。是多年投資即將完成的事實還是您在業務組合中看到的某些東西讓您確信有能力利用該訂單項？

Sure. So I think it speaks a lot to our long-term economic model. So we've long had a series of investments, both in terms of marketing as well as the team and our infrastructure with the vision of we'd be able to leverage those investments over time. So our approach is going to be continue to stay strong on a marketing standpoint. We believe those marketing investments we're making definitely are bearing fruit in terms of the market share gains that you see and our continued business momentum.

當然。所以我認為這對我們的長期經濟模式很有意義。因此，我們長期以來進行了一系列投資，無論是在營銷方面還是在團隊和基礎設施方面，我們的願景是隨著時間的推移，我們能夠利用這些投資。因此，從營銷的角度來看，我們的方法將繼續保持強勁。我們相信，我們所做的這些營銷投資肯定會在您看到的市場份額增長和我們持續的業務勢頭方面取得成果。

But if I take a look at the rest of our cost structure, the SG&A outside of marketing, there's definitely ability to leverage that, particularly as we pick up more sales. And that very much has been our intent as we laid out that 3-year economic model where mid to high single-digit sales growth, we see leverage through those fixed costs to be able to drive EBITDA growth faster than that and really from that FY '22 period over the next 3 years as a CAGR.

但如果我看看我們的成本結構的其餘部分，即營銷之外的銷售、一般行政費用，肯定有能力利用它，特別是當我們獲得更多銷售額時。這正是我們的意圖，因為我們制定了三年經濟模型，其中中高個位數的銷售增長，我們看到通過這些固定成本的槓桿作用能夠推動 EBITDA 增長得更快，並且真正從該財年開始'22 期間未來3 年的複合年增長率。

And then just really quickly, Mandy, could I ask on the inventory step-up? I know you mentioned space expansion and the Keys launch, but help us think through the FX component of higher costing. I think you mentioned that you'll see some headwinds through the fourth quarter, but how should we think about the forward year as those higher cost of goods kind of feed through the overall model?

然後很快，曼迪，我可以問一下庫存增加的問題嗎？我知道您提到了空間擴張和 Keys 的推出，但請幫助我們思考更高成本的外匯部分。我想你提到你會在第四季度看到一些阻力，但我們應該如何看待未來一年，因為這些較高的商品成本會影響整個模型？

Yes. So as we talked in our prepared remarks, FX is a headwind for us. I've talked in the past about how it's been a benefit, and that is now with a weaker U.S. dollar, it's turned into a headwind. And our plan to help mitigate the impact of FX as we laid out really starts with pricing. And so we will be taking some select price increases to help offset that impact, continuing to work with our suppliers on cost savings, and then to your earlier point on SG&A leverage, really having that as a focus to help deliver on our long-term economic model of driving that EBITDA leverage over the next 3 years.

是的。因此，正如我們在準備好的發言中所說，外匯對我們來說是一個阻力。我過去曾談到過這是一種好處，但現在隨著美元走軟，它變成了一種阻力。我們制定的幫助減輕外匯影響的計劃實際上是從定價開始的。因此，我們將採取一些有選擇的提價來幫助抵消這種影響，繼續與我們的供應商合作節省成本，然後回到您之前關於 SG&A 槓桿的觀點，真正將其作為幫助實現長期目標的重點未來3 年推動EBITDA 槓桿的經濟模型。

And our next question will come from Linda Bolton-Weiser with D.A. Davidson.

我們的下一個問題將由 Linda Bolton-Weiser 和 D.A. 提出。戴維森。

Maybe you could help me understand kind of the cadence of the EBITDA progression in the third and fourth quarter. I think, originally, you had said there would be more EBITDA margin pressure in the fourth quarter because of the Alicia Keys costs. And now the way it's modeled out, your EBITDA, quite frankly, was lower than expected in the third quarter and it's kind of higher than expected in the fourth quarter. So can you kind of help us understand, like did you have some incremental expenses in the third quarter that were unexpected? And maybe you could give a little color on the gross margin impact. You mentioned there was retailer activity and space expansion costs related to the gross margin impact in the quarter. Maybe you could give some color on that.

也許你可以幫助我了解第三和第四季度 EBITDA 進展的節奏。我認為，最初，您曾說過，由於艾麗西亞·凱斯 (Alicia Keys) 的成本，第四季度 EBITDA 利潤率壓力將會更大。現在按照模型的方式，坦率地說，你的 EBITDA 低於第三季度的預期，但有點高於第四季度的預期。那麼您能否幫助我們了解一下，例如您在第三季度是否有一些意外的增量支出？也許你可以對毛利率的影響進行一些說明。您提到與本季度毛利率影響相關的零售商活動和空間擴張成本。也許你可以對此給予一些顏色。

Sure. So let's start with the EBITDA progression question. So I talked about a shift in order timing from Q3 into Q4. And so really, if you think about those sales moving over into Q4, that would imply better than previous EBITDA margins for Q4. And so that's what you're seeing happen there. So in total, we recaptured those sales, and that's reflected in Q4. So just a little bit of a shift there from an order timing standpoint.

當然。讓我們從 EBITDA 進展問題開始。所以我談到了訂單時間從第三季度到第四季度的轉變。事實上，如果你考慮到第四季度的銷售情況，這意味著第四季度的 EBITDA 利潤率要好於之前的水平。這就是你所看到的情況。因此，總的來說，我們重新獲得了這些銷售額，這反映在第四季度。因此，從訂單時間的角度來看，只是有一點轉變。

On the gross margin impact and the retailer cost that we talked about, there are certain costs that are related to expanding space or getting on shelf with retailers that do impact gross margin. And so as we pick up space and as we get our brands on to shelf, there are costs associated with that. And so that was what was implied by that comment.

關於我們談到的毛利率影響和零售商成本，某些與擴大空間或與零售商上架相關的成本確實會影響毛利率。因此，當我們獲得空間並將我們的品牌上架時，就會產生與之相關的成本。這就是該評論所暗示的內容。

And our next question will come from Oliver Chen with Cowen.

我們的下一個問題將由奧利弗·陳和考恩提出。

As you think about marketing and your updated outlook, what's happening with marketing as a percentage of sales? And then as you undergo a lot of innovation in these new platforms and experimentation as well as really great success, marketing as a percentage of sales, how do you see that trending on a longer-term basis? Would also love any context as Ulta and Target partner, what that may imply in terms of your business and different planning that's happening?

當您考慮營銷和更新的展望時，營銷佔銷售額的百分比發生了什麼變化？然後，當您在這些新平台和實驗中經歷大量創新並取得巨大成功時，營銷佔銷售額的百分比，您如何看待這種長期趨勢？還喜歡作為 Ulta 和 Target 合作夥伴的任何背景，這對您的業務和正在發生的不同計劃可能意味著什麼？

Sure. So first of all, we feel great about our marketing and digital investments. As a reminder, we talked about taking our marketing and digital investments, including Keys Soulcare, up to the 14% to 16% range for this year. That's unchanged. We still assume that for this year, which is a pretty big step-up from last year. We're comfortable with those levels right now. When we provide FY '22 guidance next quarter, we'll update the entire outlook as we take a look, but we like what we're seeing from those investments and how we're able to do at those levels.

當然。首先，我們對我們的營銷和數字投資感覺良好。提醒一下，我們討論了今年將包括 Keys Soulcare 在內的營銷和數字投資提高到 14% 至 16% 的範圍。那是不變的。我們仍然假設今年是這樣，這比去年有很大的進步。我們現在對這些水平感到滿意。當我們下季度提供 22 財年指導時，我們將在查看時更新整個前景，但我們喜歡從這些投資中看到的結果以及我們在這些水平上的表現。

And a big part of those investments is also really supporting 2 things: one, us continuing to blaze new territory, whether it be our partnership with Lufu on Twitch, whether it be our work on Triller as well as the other platforms. We're seeing real resonance with consumers on all of our different marketing activities. And then in particular, with our innovation program, we have a number. I mean, I think, unlike a number of other brands, we remain strong in terms of our new product launches throughout the pandemic, and I'm particularly pleased with the new products that we have slated for this upcoming year. Our spring resets are getting set right now. The early indication we have from our online sales is quite strong. Things like our CC Cream, which I believe is going to be our next big holy grail product, building off our camo concealer franchise, our Mint Melt collection with Walmart, our Holy Hydration makeup cleansing balm, all of those are doing extremely well as are some of our other innovations. So feel really good about that combination of our marketing, digital investment really getting behind some of these key new products that only e.l.f. can deliver.

這些投資的很大一部分實際上也支持兩件事：第一，我們繼續開拓新領域，無論是我們在 Twitch 上與 Lufu 的合作，無論是我們在 Triller 以及其他平台上的工作。我們在所有不同的營銷活動中看到了消費者的真正共鳴。特別是，通過我們的創新計劃，我們有很多。我的意思是，我認為，與許多其他品牌不同，我們在整個大流行期間在新產品發布方面保持強勁，我對我們為即將到來的一年計劃的新產品感到特別滿意。我們的春季重置現已開始。我們從在線銷售中得到的早期跡象非常強勁。比如我們的CC霜，我相信這將成為我們的下一個大聖杯產品，我們的迷彩遮瑕膏專營權，我們與沃爾瑪合作的Mint Melt系列，我們的Holy Hydration化妝潔面膏，所有這些都表現得非常好我們的一些其他創新。因此，我們對我們的營銷和數字投資的結合感到非常滿意，這些投資確實支持了一些只有 e.l.f. 的關鍵新產品。可以交付。

And then in terms of Ulta and Target, we see huge opportunity both with the partnership and then with each customer. So at Target this last quarter, we actually surpassed L'Oréal for the #2 position at Target, and that's still with a footprint that's significantly less than Maybelline and L'Oréal. So we have a long way to grow even within our most established retail customer.

然後就 Ulta 和 Target 而言，我們看到了合作夥伴關係以及每個客戶的巨大機遇。因此，在塔吉特上個季度，我們實際上超過了歐萊雅，在塔吉特排名第二，但足跡仍然明顯少於美寶蓮和歐萊雅。因此，即使在我們最成熟的零售客戶中，我們還有很長的路要走。

I mentioned in the prepared remarks that Ulta is continuing to reward the brand with more space, not only the space they gave us last fall, but in their spring resets as well. So we see real momentum there. And then depending on how that partnership between Ulta and Target progresses, we also see opportunity, particularly with our Keys Soulcare brand, which is going to start exclusively at Ulta, but I think there's an opportunity down the line to also take a look at some of those boutiques within Target as well.

我在準備好的發言中提到，Ulta 將繼續為該品牌提供更多空間，不僅是去年秋天他們給我們的空間，還有春季重置時的空間。所以我們看到了真正的勢頭。然後，根據 Ulta 和 Target 之間的合作進展情況，我們也看到了機會，特別是我們的 Keys Soulcare 品牌，該品牌將在 Ulta 獨家推出，但我認為未來還有機會看看一些Target 內的那些精品店也是如此。

And our final question is just awareness growth. As you think about awareness growth at W3LL PEOPLE and Keys Soulcare, what would you highlight as the building blocks for doing that? They're different kind of special brands in different ways, but would love thoughts on the awareness road map at those newer brands.

我們的最後一個問題是意識的增長。當您考慮 W3LL PEOPLE 和 Keys Soulcare 的意識提升時，您會強調什麼是實現這一目標的基石？他們以不同的方式是不同類型的特殊品牌，但希望了解這些新品牌的認知路線圖。

Sure. So on a macro level, we're following the same approach as e.l.f. It's a digital-first strategy. So you see all of our spending really primarily digitally related in building that awareness. So we did a brand recharge on W3LL PEOPLE. We're pleased with the results we're seeing on that so far in terms of our ability to engage consumers really through digital and as we expand distribution on that brand.

當然。因此，在宏觀層面上，我們遵循與 e.l.f 相同的方法。這是數字優先的戰略。所以你會看到我們所有的支出實際上主要與數字化有關，以建立這種意識。所以我們在W3LL PEOPLE上做了一次品牌充值。我們對迄今為止所看到的結果感到滿意，因為我們有能力通過數字方式真正吸引消費者，並且我們擴大了該品牌的分銷。

Keys Soulcare, we're using a similar strategy but somewhat different in that we also have Alicia Keys' 100 million followers and the community that we're building with Keys Soulcare. So the ability to amplify that brand is even greater just given the power of Alicia Keys and what we've done by really creating a lifestyle beauty brand and really starting with content, conversation and community. And particularly as we expand distribution on that brand, and that will be a true global brand, I think we have a real big opportunity to really accelerate awareness on that one as well.

Keys Soulcare，我們正在使用類似的策略，但有些不同，因為我們還有 Alicia Keys 的 1 億粉絲以及我們與 Keys Soulcare 一起構建的社區。因此，考慮到 Alicia Keys 的力量以及我們通過真正創建一個生活方式美容品牌並真正從內容、對話和社區開始所做的事情，擴大該品牌的能力就更大了。特別是當我們擴大該品牌的分銷範圍時，這將是一個真正的全球品牌，我認為我們也有一個真正的大機會來真正提高對該品牌的認知度。

And our next question will come from Jon Andersen with William Blair.

我們的下一個問題將由喬恩·安德森和威廉·布萊爾提出。

I apologize if this has already been asked. But on Soulcare, Keys Soulcare, could you talk about where you are today in terms of the number of products in market? And I wasn't totally clear when you plan to be available at brick-and-mortar retail or when you plan to have that brand available at brick-and-mortar retail and with which retailers it will be initially merchandised?

如果已經有人問過這個問題，我深表歉意。但在 Soulcare、Keys Soulcare 上，您能談談目前市場上產品數量的情況嗎？我不太清楚您計劃何時在實體零售店出售該品牌，或者您計劃何時在實體零售店出售該品牌以及最初將在哪些零售商處銷售？

Sure, Jon. So we expanded the Keys Soulcare range to 9 different skincare products and rituals really earlier kind of in January. And so we're pleased with the initial results of those products. Those have primarily been online, both keyssoulcare.com and at ulta.com. We're now in Cult Beauty in the U.K. online. And in terms of brick-and-mortar, you'll start seeing the expansion of that brand. The first customer that we have announced is Ulta Beauty. You'll see it enter retail in Ulta Beauty over the next quarter or so. And then following that, you'll see expansion in Douglas across Western Europe. And that's all in addition to the 29 countries that global ship is available in. That's already live. So you'll continue to see a progression, but brick-and-mortar will come a bit later in the year.

當然，喬恩。因此，我們在一月份早些時候將 Keys Soulcare 系列擴展到 9 種不同的護膚產品和護理程序。因此，我們對這些產品的初步結果感到滿意。這些主要是在線的，包括keysoulcare.com 和ulta.com。我們現在在英國的 Cult Beauty 網站上。就實體而言，您將開始看到該品牌的擴張。我們宣布的第一位客戶是 Ulta Beauty。您將在下個季度左右看到它進入 Ulta Beauty 零售店。接下來，您將看到道格拉斯在整個西歐的擴張。這還不包括全球運送服務覆蓋的 29 個國家/地區。該服務已經上線。因此，您將繼續看到進展，但實體店將在今年晚些時候出現。

Okay. And then on W3LL PEOPLE, I know you've talked about the brand recharge a couple of times. Could you give us a little bit more color on the program there? What's changed? And also an update on the progress you're making or maybe the opportunity to expand distribution, leverage your national retail relationships and the progress you've made there so far.

好的。然後在 W3LL PEOPLE 上，我知道您已經多次談到品牌充值。您能為我們提供更多有關該計劃的信息嗎？發生了什麼變化？還有關於您正在取得的進展的最新信息，或者可能是擴大分銷的機會，利用您的全國零售關係以及迄今為止取得的進展。

Sure. So the real focus on the brand recharge was really amplifying what W3LL PEOPLE stands for. One of the things that really appealed to us when we made the acquisition is W3LL PEOPLE is a real pioneer in clean beauty, almost 40 EWG VERIFIED products, the highest standard of clean, a real great heritage in the clean beauty space, is a pioneer there. And so the focus of the brand recharge is really making those superpowers come to life, really our clean beauty approach and products that really work. The products are phenomenal on W3LL PEOPLE. And so you see if you go on W3LLPEOPLE.com a just more vibrant presentation of the brand, core brand proposition. And as we take that to customers, including better visual merchandising. So the current distribution footprint of W3LL PEOPLE, the primary customer is Target, and they're not in all doors at Target. So we see a huge opportunity, leveraging our strength at Target, to expand distribution there.

當然。因此，品牌充電的真正重點是放大 W3LL PEOPLE 所代表的意義。當我們進行收購時，真正吸引我們的一件事是W3LL PEOPLE 是清潔美容領域真正的先驅，擁有近40 種EWG VERIFIED 產品，清潔的最高標準，是清潔美容領域真正的偉大遺產，是清潔美容領域的先驅那裡。因此，品牌更新的重點是真正讓這些超能力變得栩栩如生，真正實現我們的清潔美容方法和真正有效的產品。這些產品在 W3LL PEOPLE 上表現出色。因此，如果您訪問 W3LLPEOPLE.com，您會發現品牌、核心品牌主張的展示更加生動。當我們將其帶給客戶時，包括更好的視覺營銷。因此，W3LL PEOPLE 目前的分銷足跡，主要客戶是 Target，而且他們並不在 Target 的所有領域。因此，我們看到了一個巨大的機會，可以利用我們在 Target 的優勢來擴大那裡的分銷。

I mentioned earlier that we're part of Ulta's Conscious Beauty program. We see that as an opportunity as well and other retailers that really consider clean a key consumer segment, which increasingly is coming to more and more retailers as we go through. So we feel good about our journey ahead and particularly the progress we've made on the brand.

我之前提到過，我們是 Ulta Conscious Beauty 計劃的一部分。我們認為這也是一個機會，其他真正將清潔視為關鍵消費群體的零售商也認為這是一個機會，隨著我們的經歷，越來越多的零售商越來越多地看到這一點。因此，我們對未來的旅程，特別是我們在品牌方面取得的進展感到滿意。

That's really helpful. If I could squeeze one more in. Just if you could comment on the supply chain, some of the changes you've made with own manufacturing, et cetera, kind of the status of some of the optimization work you're doing in the supply chain.

這真的很有幫助。如果我能再擠進去一點的話。如果你能評論一下供應鏈，你對自己的製造所做的一些改變等等，你在供應中所做的一些優化工作的狀態鏈。

Sure. So our supply chain is one of our key advantages. We have a unique hybrid model where we work with like-minded suppliers and have a great deal of control in terms of our entire supply chain. We continue to see really great progress from our China supply chain, first and foremost, through lean manufacturing, generating savings, even better operating results. We were able, over the last 6 months, to be able to tech transfer all of the W3LL PEOPLE products to our China supply chain, realizing significant COGS savings. Keys Soulcare is being manufactured through that same supply chain basis, which also gives us that advantage in cost, quality and speed. And so you continue to see us enhance it.

當然。因此，我們的供應鍊是我們的主要優勢之一。我們擁有獨特的混合模式，與志同道合的供應商合作，並對整個供應鏈擁有很大的控制權。我們繼續看到我們的中國供應鏈取得了巨大的進步，首先是通過精益製造，節省了成本，甚至實現了更好的經營業績。在過去的 6 個月裡，我們能夠將所有 W3LL PEOPLE 產品技術轉移到我們的中國供應鏈，從而顯著節省了銷貨成本。 Keys Soulcare 是通過相同的供應鏈基礎進行製​​造的，這也為我們帶來了成本、質量和速度方面的優勢。所以你會繼續看到我們增強它。

The one place we have not made as much progress on is our U.S. manufacturing. If you recall last quarter, I talked about some of the COVID restrictions getting in the way for us to be able to do our engineering work for that facility. That's still very much true. The good news is, we've been able to overcome that by the strength that we're seeing in our China supply chain and look forward to providing greater updates on that in the future, but it really is one of the strengths that's helping drive the overall business.

我們沒有取得太大進展的地方是我們的美國製造業。如果您還記得上個季度，我談到了一些新冠疫情限制阻礙了我們為該設施開展工程工作。這仍然是非常正確的。好消息是，我們已經能夠通過我們在中國供應鏈中看到的實力克服這一問題，並期待未來提供更多更新，但這確實是幫助推動這一趨勢的優勢之一。整體業務。

And our next question will come from Erinn Murphy with Piper Sandler.

我們的下一個問題將由艾琳·墨菲和派珀·桑德勒提出。

So one follow-up first on pricing. Is the higher pricing that you're taking right now, are we going to see that here on the shelf in Q4 or is that really wrapping into next year? And then just trying to understand really the net of the fourth quarter kind of gross margin pressure. And then secondly, you guys have done a great job just keeping your finger on the pulse on what's kind of next from a social media perspective. Could you just share a little bit more about what you're seeing from a response of both Twitch and then Triller? Is it bringing in a new customer as you kind of experiment on some pretty unique platforms for beauty?

因此，首先要跟進定價。你們現在採取的定價是否更高，我們會在第四季度看到它上架還是真的會持續到明年？然後只是想了解第四季度毛利率壓力的真正淨值。其次，你們做得很好，從社交媒體的角度把握了接下來會發生什麼。您能否分享一下您從 Twitch 和 Triller 的回應中看到的更多內容？當你在一些非常獨特的美容平台上進行實驗時，它是否會帶來新客戶？

Yes. So Erinn, I'll take the first question, and I'll pass it to Tarang on the social update. So from a pricing standpoint, that will not impact Q4. You'll see that in early fiscal '22 in terms of offsetting FX pressure. That's kind of our program as we head into fiscal '22 of focusing on the select price increases, negotiating cost savings and then that increased focus on SG&A leverage as an offset to the headwinds.

是的。 Erinn，我將回答第一個問題，然後在社交更新中將其傳遞給 Tarang。因此，從定價的角度來看，這不會影響第四季度。在抵消外匯壓力方面，您將在 22 財年初期看到這一點。這就是我們在進入 22 財年時的計劃，重點關注選定的價格上漲、談判成本節約，然後更加關注 SG&A 槓桿，以抵消不利因素。

Okay. And so is gross margin -- I mean, as we think about the puts and takes there for the fourth quarter, and I may have missed this in the prepared remarks, is that down to a similar level to Q3 or is it worse just given the FX starts to flip in the fourth quarter?

好的。毛利率也是如此——我的意思是，當我們考慮第四季度的看跌期權和賣出期權時，我可能在準備好的評論中錯過了這一點，是下降到與第三季度類似的水平還是更糟？外匯從第四季度開始翻轉？

Yes. That's right. So the FX starts to flip in the fourth quarter. So what we saw in Q3 was just less of a benefit. In fact, it turns into a headwind in Q4. And so you should expect to see that materialize.

是的。這是正確的。因此，外彙在第四季度開始翻轉。因此，我們在第三季度看到的好處只是較少。事實上，它在第四季度變成了逆風。所以你應該期待看到這一點成為現實。

Okay. And then, yes, Tarang, I'd love to hear your thoughts on that.

好的。然後，是的，塔朗，我很想听聽你對此的想法。

Yes. So I mean, I'm really proud of our marketing and digital team. They continue to kind of blaze new frontiers. And you saw that on our activations on TikTok, which continue to do quite well with over 10 billion views, I think over 7 million user-generated videos, but also going into new platforms. The one I'm particularly excited about is our partnership with Lufu and the things that we're doing on Twitch. So it accesses an entirely new audience and some of the current audience in terms of her ability to really activate amongst female as well as male gamers. And the work that she's doing, there's a video right now with her and our global makeup artist, Anna Bynum, who's also an avid gamer herself, and kind of their ability to kind of educate a whole new set of consumers on everything that's wonderful about e.l.f. and helping them express themselves, gain confidence, very much plays into our core brand values.

是的。所以我的意思是，我真的為我們的營銷和數字團隊感到自豪。他們繼續開拓新領域。你看到了我們在 TikTok 上的激活情況，它繼續表現出色，觀看次數超過 100 億次，我認為用戶生成的視頻超過 700 萬個，而且還進入了新平台。讓我特別興奮的是我們與 Lufu 的合作以及我們在 Twitch 上所做的事情。因此，就她在女性和男性遊戲玩家中真正活躍的能力而言，它吸引了全新的受眾和一些當前受眾。她正在做的工作，現在有一個視頻，是她和我們的全球化妝師安娜·拜納姆（Anna Bynum）一起製作的，安娜·拜納姆本人也是一位狂熱的遊戲玩家，以及他們向全新消費者傳授一切精彩之處的能力e.l.f.幫助他們表達自己、獲得自信，這對我們的核心品牌價值非常重要。

And then on Triller, as we mentioned, we're also excited about the work we did there. I mean, I was frankly quite surprised that we could put a holiday album on and have it hit Billboard's Top 20. Four of our tracks hit the Billboard Top 20, both in the U.S. and globally, which definitely shows, I think we've had some strength in terms of the brand and our connection to music, up and coming artists, and you definitely saw that play out on Triller. And you're going to continue to see us blaze other new territories. I'm excited about some of the upcoming collaborations and partnerships we have, but you're going to have to wait until our next call to hear about them.

然後在 Triller 上，正如我們提到的，我們也對在那裡所做的工作感到興奮。我的意思是，坦率地說，我很驚訝我們可以推出一張假日專輯並進入公告牌前20 名。我們的四首歌曲在美國和全球都進入了公告牌前20 名，這絕對錶明，我認為我們已經在品牌以及我們與音樂、新晉藝術家的聯繫方面有一定的實力，你肯定在 Triller 上看到了這一點。您將繼續看到我們開拓其他新領域。我對我們即將開展的一些合作和夥伴關係感到很興奮，但您必須等到我們下一次電話才能聽到這些信息。

And our next question will come from Bill Chappell with Truist Securities.

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

Tarang, just a question going back to pricing. I mean, has the company thought of any change in terms of pricing beyond FX? And I mean, if we go back to the past couple of years, you're able to take pretty meaningful price increase to offset the tariffs and really had no elasticity, no real issue on volumes. And so it seems to -- I know your products are extraordinarily attractively priced, but I mean, is there an opportunity to take even further over the next year or 2 and actually improve margins with them?

Tarang，只是一個回到定價的問題。我的意思是，該公司是否考慮過在外匯以外的定價方面進行任何改變？我的意思是，如果我們回到過去幾年，你可以採取相當有意義的價格上漲來抵消關稅，而且實際上沒有彈性，在數量上沒有真正的問題。所以看起來——我知道你們的產品價格非常有吸引力，但我的意思是，是否有機會在未來一兩年內採取進一步行動，並真正提高它們的利潤率？

Well, we definitely saw that be the case in our last round of pricing. So if you recall, a lot of people were worried about the 25% tariffs on China goods, which really impacted most of our lineup. And we were able to use this approach of selective pricing to overcome those tariffs and actually do really well on gross margin. So we know the brand has pricing power based on our prior execution. And how we did that execution was equally important. We didn't just peanut butter the pricing as a general percentage across everything. We really picked the items where we have the biggest value halo or opportunity to take pricing. And so I'd say that is very much the design and construct of our pricing upcoming.

嗯，我們在上一輪定價中確實看到了這種情況。所以，如果你還記得的話，很多人都擔心對中國商品徵收 25% 的關稅，這確實影響了我們的大部分產品陣容。我們能夠使用這種選擇性定價的方法來克服這些關稅，並且實際上在毛利率方面做得非常好。因此，根據我們之前的執行情況，我們知道該品牌具有定價權。我們如何執行同樣重要。我們不只是把花生醬定價作為所有東西的一般百分比。我們確實選擇了具有最大價值光環或定價機會的項目。所以我想說，這很大程度上就是我們即將推出的定價的設計和構造。

It won't be in the U.S. quite as broad as it was last time. I think we impacted about 1/3 of our SKUs last time. But internationally, we did not take pricing the last time. So I think particularly with FX, we have the opportunity to go further internationally and then with select items in the U.S. And so definitely, we see pricing as a lever at our disposal. Our preferred method of driving gross margin though is through margin accretive innovation. So I mentioned our CC Cream, which I believe is going to be our next holy grail product. It's an incredible value relative to the $40 prestige equivalent, but it retails at $14. So it's a significant premium relative to the rest of our lineup.

在美國，它不會像上次那樣廣泛。我認為我們上次影響了大約 1/3 的 SKU。但在國際上，我們上次沒有定價。因此，我認為，特別是在外匯方面，我們有機會進一步走向國際，然後在美國選擇某些項目。因此，我們肯定將定價視為我們可以使用的槓桿。不過，我們提高毛利率的首選方法是通過利潤增值創新。所以我提到了我們的 CC 霜，我相信這將是我們的下一個聖杯產品。相對於 40 美元的高端產品來說，它的價值令人難以置信，但零售價為 14 美元。因此，相對於我們陣容的其他產品，這是一個顯著的溢價。

So it's going to be that combination, Bill, as we go forward, which is primarily through margin accretive innovation and some of the other things that Mandy talked about in terms of our gross margin progression. But also, we will look at pricing. There's always a healthy tension being an extraordinary value brand of not getting ahead of ourselves. We did see a unit decline when we did pricing last time. And so there's always a balance there. Now I feel good about post that pricing how we've built back units, which, again, tells me we have that pricing power and ability to get that through, but we want to be choiceful in that pricing and execute it similarly to the way we did last time.

因此，比爾，隨著我們的前進，這將是這種結合，這主要是通過利潤增值創新以及曼迪在我們的毛利率進展方面談到的其他一些事情。而且，我們也會考慮定價。作為一個具有超凡價值的品牌，始終存在一種健康的張力，即不要超越自己。上次定價時，我們確實看到單位數量下降。所以那裡總是有一個平衡。現在，我對發布我們如何重建單位的定價感到滿意，這再次告訴我，我們有定價能力和能力來實現這一點，但我們希望在定價中有所選擇，並以類似的方式執行它我們上次就是這麼做的。

Great. I appreciate that. And Mandy, I realize you're not giving fiscal '22 guidance, but trying to understand Keys Soulcare, the spend you're expecting in the fourth quarter. I mean, will you be up to kind of the, I don't know if it's normalized levels of marketing and advertising spend by the time we get to the end of March or is that expected to continue to kind of ramp throughout the year until we get to kind of a peak level?

偉大的。我很感激。 Mandy，我意識到您不是在提供 22 財年指導，而是試圖了解 Keys Soulcare，即您預計在第四季度的支出。我的意思是，你能做好準備嗎？我不知道到三月底時營銷和廣告支出是否已達到正常水平，或者預計全年會繼續增加，直到我們達到了某種巔峰水平嗎？

Yes. So I think the best way to think about that, Bill, is each of our brands will have dedicated marketing against them. And we do that as a percentage of net sales. And so if you think about e.l.f., we've talked about the 14% to 16% broadly for e.l.f. Beauty. That incorporates the marketing spend that we're putting behind Keys Soulcare.

是的。因此，比爾，我認為最好的思考方式是我們的每個品牌都會針對它們進行專門的營銷。我們以占淨銷售額的百分比來計算。因此，如果您考慮 e.l.f.，我們已經廣泛討論了 e.l.f. 的 14% 到 16%。美麗。這包括我們為 Keys Soulcare 投入的營銷支出。

As Tarang mentioned earlier, as we get into fiscal '22, we'll come back with kind of where we see everything as we move forward. But just think about each brand will have their own marketing plans as a percentage of net sales to support each of those brands as we move forward.

正如 Tarang 之前提到的，當我們進入 22 財年時，我們將在我們前進的過程中看到我們所看到的一切。但想想每個品牌都會有自己的營銷計劃（占淨銷售額的百分比），以在我們前進的過程中支持每個品牌。

So then outside kind of big splash over the next few months, it's kind of a slow and steady build?

那麼，除了接下來幾個月的巨大轟動之外，這是一個緩慢而穩定的建設？

Well, like we said, we have the $5 million to $6 million baked in for this year for Q4 behind the launch of the brand, especially as we get further along in our distribution plan. But again, as we think about it for the long term, it's really going to be focused on a percentage of sales for each brand.

好吧，正如我們所說，我們為今年第四季度推出該品牌準備了 500 萬至 600 萬美元，特別是當我們在分銷計劃方面取得進一步進展時。但同樣，當我們從長遠考慮時，它實際上會關注每個品牌的銷售額百分比。

Yes. And then just maybe adding some perspective to that. The $5 million to $6 million for this year is definitely outsized relative to the modest sales contribution Keys Soulcare would have. We thought that was a prudent spend to really launch something that's completely new in beauty. Ongoing to Mandy's point, at least for this fiscal year, we're really comfortable in that 14% to 16%, inclusive of all 3 of our brands. And when we put FY '22 guidance out there, part of that guidance will include what we expect to spend from a marketing standpoint in total so people don't have to guess how does the $5 million to $6 million translate ongoing. It will be part of the overall percentage we have as a company.

是的。然後也許可以添加一些觀點。與 Keys Soulcare 的微薄銷售貢獻相比，今年 500 萬至 600 萬美元的銷售額絕對是過大的。我們認為這是一項謹慎的支出，可以真正推出美容領域的全新產品。繼續 Man​​dy 的觀點，至少在本財年，我們對 14% 到 16%（包括我們所有 3 個品牌）感到非常滿意。當我們發布 22 財年指導時，該指導的一部分將包括我們從營銷角度預計的總支出，這樣人們就不必猜測 500 萬至 600 萬美元將如何轉化。它將成為我們公司整體百分比的一部分。

Our next question will come from Rupesh Parikh with Oppenheimer.

我們的下一個問題將由魯佩什·帕里克和奧本海默提出。

So Tarang, just going back to your positive commentary so far in the Keys Soulcare launch. I was just curious if there's anything thus far that surprised you with the launch. It sounds like you guys have already gotten very good buzz.

Tarang，回到您迄今為止在 Keys Soulcare 發布中的積極評論。我只是好奇到目前為止，這次發布是否有任何讓您感到驚訝的事情。聽起來你們已經獲得了很好的關注。

Yes. Well, I would say, I don't know if it surprised us, but I'm still in awe of the 10 billion press impressions we've picked up since, and we're not even in retail yet. So I think it definitely shows that there's something in this brand that's resonating broadly.

是的。好吧，我想說，我不知道這是否讓我們感到驚訝，但我仍然對我們自那時以來獲得的 100 億次媒體印象感到敬畏，而且我們甚至還沒有進入零售業。所以我認為這絕對錶明這個品牌中有一些能引起廣泛共鳴的東西。

And then as we look at the community, the depth of engagement of that community, I think in the prepared remarks we talked about Instagram engagement metrics being well beyond what we're expecting. And so I think it's still early days, but it's quite encouraging in terms of the level of consumer response and engagement we have to that brand. We'll be able to provide more metrics, I think, once we are out in retail and be able to see what that looks like.

然後，當我們審視社區時，該社區的參與深度，我認為在準備好的評論中，我們談到了 Instagram 參與度指標遠遠超出了我們的預期。因此，我認為現在還處於早期階段，但就消費者對該品牌的反應和參與度而言，這是相當令人鼓舞的。我認為，一旦我們進入零售領域並能夠看到它是什麼樣子，我們將能夠提供更多指標。

Okay. Great. And then just one follow-up question for Mandy just on your operating cash flow. So I get the commentary just on inventory that the inventories are elevated and that did weigh in your cash generation. But even, I guess, excluding inventories, some of the other working capital, there's some other working capital headwinds during the quarter. So just curious how you're thinking about cash flow in Q4.

好的。偉大的。接下來，曼迪要問一個關於您的經營現金流的後續問題。因此，我得到的評論只是關於庫存，庫存增加了，這確實影響了您的現金生成。但我認為，即使排除庫存和其他一些營運資金，本季度也存在一些其他營運資金阻力。所以只是好奇你如何看待第四季度的現金流。

Yes. So yes, if you look at inventory, that was a portion of our cash use on a year-to-date basis. Our receivables would be the other areas you look through. And that all I just think of as just timing.

是的。所以，是的，如果你看看庫存，那就是我們今年迄今為止現金使用的一部分。我們的應收賬款將是您查看的其他領域。我認為這只是時機。

In terms of our free cash flow expectations for the year, I would expect us to be positive free cash flow for the year. As we enter into Q4, shouldn't have a pull on additional from an inventory standpoint or things like that so should have some cash flow there in Q4.

就我們今年的自由現金流預期而言，我預計今年的自由現金流將為正。當我們進入第四季度時，從庫存或類似因素的角度來看，不應有額外的拉動，因此第四季度應該有一些現金流。

And our next question will come from Mark Astrachan with Stifel.

我們的下一個問題將來自 Stifel 的 Mark Astrachan。

Wanted to ask about thoughts on where you think online sales settle as a percentage of sales. I mean, we heard from some of the retailers both that they're surprised at how well beauty has done from an online standpoint, but also that perhaps some of that settles back into time. So you touched on the 16% of sales where you are now. And as you think forward, how do you think about that number in the broader context of the category?

想詢問您對在線銷售額佔銷售額的百分比的看法。我的意思是，我們從一些零售商那裡聽說，他們對在線美容的表現感到驚訝，但也許其中一些可以追溯到過去。所以您談到了目前銷售額的 16%。當您展望未來時，您如何在該類別的更廣泛背景下看待這個數字？

Yes. I think we'll have more thoughts on that, Mark, when we get into providing FY '22 guidance. I mean, we're obviously pleased as everyone else is. I mean, I think we have triple-digit growth on our online business between elfcosmetics.com and our retailer dot-coms. Similar to some of the commentary you've heard from others, we continue to see a good proportion of new consumers, particularly on elfcosmetics.com. I think 60% of purchases were from new consumers who are also signing up for our Beauty Squad Loyalty Program. So it's really going to come down to how many of those consumers are we able to retain. That will dictate what percent of our total business we are, but we're definitely seeing the momentum. I don't think we have a percentage in mind right now in terms of where we see that in the future, but we're pleased with the 16% versus 10% last year. And more importantly, some of the underlying metrics, which definitely show a migration online.

是的。馬克，我認為當我們開始提供 22 財年指導時，我們會對此有更多的想法。我的意思是，我們顯然和其他人一樣感到高興。我的意思是，我認為 elfcosmetics.com 和我們的零售商網絡公司之間的在線業務實現了三位數的增長。與您從其他人那裡聽到的一些評論類似，我們繼續看到很大比例的新消費者，尤其是在 elfcosmetics.com 上。我認為 60% 的購買來自新消費者，他們也註冊了我們的 Beauty Squad 忠誠計劃。因此，這實際上取決於我們能夠留住多少消費者。這將決定我們佔總業務的百分比，但我們肯定看到了這種勢頭。我認為我們現在並沒有考慮到未來的具體百分比，但我們對 16% 與去年的 10% 相比感到滿意。更重要的是，一些基本指標明確顯示了在線遷移。

Got it. Okay. And then second question, just thoughts on the correlation between the increasing marketing and investment spend and sales growth. And how do you think about that factoring in? Not specific to what your sales guidance will look like for next year, but just the broad correlation and how do you think about those growing in time with each other or decoupling to some extent?

知道了。好的。然後是第二個問題，只是對營銷和投資支出的增加與銷售增長之間的相關性的思考。您如何看待這一因素？不具體說明明年的銷售指導會是什麼樣子，而只是廣泛的相關性，以及您如何看待這些指標之間的同步增長或在某種程度上的脫鉤？

Yes. One of the things that caused us to increase our marketing spend was the ROIs we're seeing off that marketing spend. So we use a combination of both Nielsen's Marketing Mix where we can get a measure of gross sales per dollar of marketing invested. We see very strong returns on that as well as some of the submetrics we have by platform in terms of the core engagement level. So we definitely know it's a key driver of both our market share gains and business momentum. And we're comfortable at the levels that we're currently at to be able to generate that and obviously, we feel has a longer term impact. So when we're able to give FY '22 guidance, we'll be able to talk to that a little bit more in terms of some of the drivers of that FY '22 guidance.

是的。導致我們增加營銷支出的原因之一是我們看到營銷支出的投資回報率。因此，我們結合使用尼爾森的營銷組合，可以衡量每美元營銷投資的總銷售額。我們看到了非常強勁的回報，以及我們在核心參與水平方面按平台劃分的一些子指標。因此，我們肯定知道這是我們市場份額增長和業務發展勢頭的關鍵驅動力。我們對目前能夠實現這一目標的水平感到滿意，顯然，我們認為這具有更長期的影響。因此，當我們能夠提供 22 財年指導時，我們將能夠就 22 財年指導的一些驅動因素進行更多討論。

And our next question will come from Wendy Nicholson with Citi.

我們的下一個問題將來自花旗集團的溫迪·尼科爾森。

Two questions. First, for Mandy, I know your long-term target is to grow EBITDA faster than revenues, but can you talk about just gross margin generally, what your outlook is. Do you think the sort of 65%, 66% type range is where you'll be long term? And can you -- I assume Soulcare is gross margin accretive, but can you give us some directional guidance? Is it 500 basis points better, 1,000 basis points better? Just directionally how much of a lift can that skincare, higher priced skincare help your overall gross margin.

兩個問題。首先，對於 Mandy，我知道您的長期目標是 EBITDA 增長速度快於收入增長速度，但您能否談談總體毛利率以及您的前景。您認為 65%、66% 的類型範圍是您的長期目標嗎？我認為 Soulcare 的毛利率會增加，但您能給我們一些方向性指導嗎？是500個基點好還是1000個基點好？就定向而言，該護膚品、價格較高的護膚品可以幫助您的整體毛利率提升多少。

And then I had a question, Tarang, for you if I can. I mean, you guys are so well positioned in the clean beauty space. And that's obviously such a hot place right now within beauty. But do you think that your, I mean, you're obviously gaining share, do you think you're gaining share within clean beauty? And I'm just wondering, clean beauty seems to be getting so much more competitive. Do you worry about having to defend your space, your market share within that segment or how do you manage around what's getting to be a very, very crowded segment of beauty, if that makes sense?

然後我有一個問題，塔朗，如果可以的話請問你。我的意思是，你們在清潔美容領域的地位非常好。這顯然是目前美容界非常熱門的地方。但你是否認為你的，我的意思是，你顯然正在獲得份額，你是否認為你在清潔美容領域獲得了份額？我只是想知道，乾淨的美容似乎變得越來越有競爭力。您是否擔心必須捍衛您的空間、您在該細分市場中的市場份額，或者您如何管理正在變得非常非常擁擠的美容細分市場（如果這有意義的話）？

Sure.

當然。

Got it. So I'll start, Wendy, on the long-term economic model and your questions around gross margin. So in the long-term economic model, to your point, we talked about adjusted EBITDA outpacing sales growth, thus yielding adjusted EBITDA margin expansion. We have not gone into depth on, well, how much gross margin will play into that versus how much adjusted SG&A will play into that, and we additionally don't give specific guidance around gross margin.

知道了。溫迪，我將從長期經濟模型以及您關於毛利率的問題開始。因此，在長期經濟模型中，就您而言，我們談到調整後的 EBITDA 超過銷售增長，從而產生調整後的 EBITDA 利潤率擴張。我們還沒有深入探討毛利率將在其中發揮多少作用，以及調整後的銷售及管理費用將在其中發揮多少作用，而且我們也沒有提供有關毛利率的具體指導。

I can say that, to Tarang's earlier point, product accretive gross margin products and innovation, that has really been our path forward on gross margin. And so as we get into the out-years of fiscal '22 and beyond, we'll start to talk more about what to expect from an adjusted EBITDA standpoint, but may not give the specifics around the gross margin versus adjusted EBITDA as we move forward.

我可以說，對於塔朗之前的觀點，產品增值的毛利率產品和創新，這確實是我們在毛利率方面的前進道路。因此，當我們進入22 財年及以後的幾年時，我們將開始更多地討論從調整後EBITDA 的角度來看會發生什麼，但可能不會給出有關毛利率與調整後EBITDA 的具體信息。向前。

On Keys Soulcare, specifically. So we talked last quarter about Keys Soulcare product margin certainly being accretive to our overall product gross margins. But when you get down to the net gross margin, because of the royalty that we do pay to Alicia Keys, that does become relatively neutral at the total company level.

特別是在 Keys Soulcare 上。因此，我們上個季度談到 Keys Soulcare 產品利潤肯定會增加我們的整體產品毛利率。但當你考慮到淨毛利率時，由於我們確實向艾麗西亞·凱斯支付了特許權使用費，這在整個公司層面上確實變得相對中性。

And then on your second question on clean beauty, part of our thesis is it's becoming mainstream. Clean beauty used to be a niche within overall beauty. Obviously, a very fast-growing segment within overall beauty. But part of our push in clean beauty really goes back to the consumers. And as a parallel, I'll say we were one of the first cruelty-free brands and from a mass standpoint in terms of being 100% cruelty-free. You've now seen other brands really embrace cruelty-free as consumers have. We feel the same thing is going to happen with clean beauty. That it's no longer going to be relegated to one subsegment. And so the brands that are going to win in clean beauty are the ones that both really stand for and can live up to those standards but also offer more than just clean beauty.

關於你關於清潔美容的第二個問題，我們的部分論點是它正在成為主流。乾淨的美曾經是整體美中的一個利基市場。顯然，這是整體美感中增長非常快的部分。但我們推動清潔美容的部分努力實際上要回饋給消費者。與之類似，我想說的是，我們是最早的零殘忍品牌之一，從大眾的角度來看，我們是 100% 零殘忍的。您現在已經看到其他品牌像消費者一樣真正擁抱零殘忍。我們覺得乾淨的美也會發生同樣的事情。它不再被歸入某一細分市場。因此，那些在清潔美容領域獲勝的品牌不僅能夠真正代表並能夠達到這些標準，而且還提供的不僅僅是清潔美容。

So the superpower, as I mentioned before, about our ability to have premium quality at these extraordinary values, cruelty-free, increasingly clean. And on the clean portfolio, the gold standard we have is certainly W3LL PEOPLE with their 40 EWG VERIFIED products. Keys Soulcare came out of the gates as a 100% clean beauty brand. But even e.l.f., I mean, on e.l.f., we are now up to, I think, 1,600 ingredients that we do not formulate with. We're very close to every clean beauty standard that's there on e.l.f. And so I think that really becomes the game changer when you can offer the consumer prestige quality at great values, that's cruelty-free, clean and has universal appeal. It's like what's not to like about e.l.f. and our overall proposition. So we very much are looking at it not only, certainly, there's a segment opportunity, but where we're going to win long term is by being able to put that combination of benefits together.

因此，正如我之前提到的，超級大國有能力在這些非凡的價值、無殘忍、日益清潔的條件下提供優質的產品。在清潔產品組合中，我們擁有的黃金標準當然是 W3LL PEOPLE 及其 40 個 EWG 驗證的產品。 Keys Soulcare 是一個 100% 清潔美容品牌。但即使是 e.l.f.，我的意思是，在 e.l.f. 上，我認為我們現在已經有 1,600 種我們不使用的成分。我們非常接近 e.l.f. 上的每一個清潔美容標準。因此，我認為，當你能夠以物超所值的價格為消費者提供高品質、無殘忍、清潔且具有普遍吸引力的產品時，這才真正成為遊戲規則的改變者。這就像 e.l.f. 不喜歡的地方一樣。以及我們的總體主張。因此，我們非常關注它，不僅是，當然，存在一個細分市場機會，而且我們要贏得長期勝利的地方是能夠將這些好處結合在一起。

Got it. And on the Keys Soulcare, I know you've obviously got a great relationship there with Ulta. And historically, you haven't had much of a relationship with Sephora, which makes sense given your price points. But given that Soulcare is a little bit more premium price, it feels like it would fit well, particularly with Sephora, going into more Kohl's stores or Kohl's stores initially, whatever. Is that something -- are you restricted to being in Ulta or if you wanted to go into Sephora in those Kohl's stores, could you?

知道了。在 Keys Soulcare 上，我知道您顯然與 Ulta 有著良好的關係。從歷史上看，您與絲芙蘭沒有太多關係，考慮到您的價格點，這是有道理的。但考慮到 Soulcare 的價格要高一些，感覺它很適合，尤其是絲芙蘭，進入更多 Kohl's 商店或首先進入 Kohl's 商店，無論如何。是這樣嗎——你是否僅限於 Ulta，或者如果你想去那些 Kohl's 商店裡的絲芙蘭，可以嗎？

Not initially with Keys Soulcare. Our relationship with Ulta is they do have exclusivity for a time period. We haven't disclosed what that exclusivity period is, but there's a great deal of partnership. I mean, Ulta itself is going to be putting pretty good investment behind really amplifying the Keys Soulcare brand. The things that we're going to do, I can't wait for you to go into their stores. And as they ramp the brand up even online, there's quite a bit of things that we're going to be doing together there.

最初不是與 Keys Soulcare 一起使用的。我們與 Ulta 的關係是他們確實在一段時間內擁有排他性。我們還沒有透露獨占期是什麼，但有很多合作夥伴關係。我的意思是，Ulta 本身將投入大量投資來真正擴大 Keys Soulcare 品牌。我們要做的事情，我迫不及待地想讓你走進他們的商店。隨著他們在網上提升品牌知名度，我們將在那裡一起做很多事情。

Talking, though, on the Sephora-Kohl's partnership, we think there's opportunity there for us. And we look at potentially W3LL PEOPLE. We look at some of the other brands that we're looking at, both either incubating or tuck-in acquisitions in future dates. We think there's an opportunity. And then also globally, we think there's an opportunity with Sephora as well. But initially here, our focus is really on Ulta Beauty and the partnership we have there.

不過，談到絲芙蘭-科爾的合作夥伴關係，我們認為這對我們來說是有機會的。我們會關注潛在的 W3LL 人員。我們關注了我們正在關注的其他一些品牌，無論是在孵化還是在未來進行收購。我們認為有機會。在全球範圍內，我們認為絲芙蘭也有機會。但最初在這裡，我們的重點實際上是 Ulta Beauty 以及我們在那裡的合作夥伴關係。

And our next question, actually, apologies. This will conclude the question-and-answer session. I'd like to turn the conference back over to Tarang Amin for any closing remarks.

實際上，我們的下一個問題是道歉。問答環節就此結束。我想將會議轉回塔朗·阿明發表閉幕詞。

Well, I want to thank everyone for joining us today. I'm incredibly grateful for the great team we have at e.l.f. Beauty and the talent that each person brings every day, particularly at this difficult time during the pandemic and how well we've executed to continue to build market share. As you can tell from our comments today, we're highly confident about the future and the long-term prospects of this business and look forward to speaking to you in May when we'll be able to talk our full fiscal '21 results as well as provide guidance for FY '22. So thanks, everyone, and be well.

嗯，我要感謝大家今天加入我們。我非常感謝 e.l.f. 的優秀團隊。每個人每天都帶來美麗和才華，特別是在大流行期間的困難時期，以及我們在繼續擴大市場份額方面的執行情況。從我們今天的評論中您可以看出，我們對這項業務的未來和長期前景充滿信心，並期待在 5 月份與您交談，屆時我們將能夠談論我們 21 財年的完整業績：並為22 財年提供指導。所以謝謝大家，祝大家一切順利。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演講。此時您可以斷開線路。