elf Beauty Inc (ELF) 2021 Q2 法說會逐字稿

Good day, and welcome to the e.l.f. Beauty Second Quarter Fiscal 2020 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎來到 e.l.f.美妝 2020 財年第二季度收益電話會議。（操作員說明）請注意，正在記錄此事件。

(presentation)

（推介會）

Thank you for joining us today to discuss e.l.f. Beauty's Second 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 on the content we're presenting, which you can access on our website at investor.elfcosmetics.com. (Operator Instructions).

感謝您今天加入我們討論 e.l.f.Beauty 2021 財年第二季度業績。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，以獲得我們所演示內容的最佳觀看體驗，您可以在我們的網站 Investor.elfcosmetics.com 上訪問這些內容。（操作員說明）。

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. We refer you to today's press release for a reconciliation 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。我們建議您參閱今天的新聞稿，以了解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的差異。

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. Today, I will talk about the fundamental drivers behind our second quarter results, our growth opportunities and the overall strategic framework for our company.

謝謝你，KC，大家下午好。我希望您一切安好。今天，我將談談我們第二季度業績背後的基本驅動因素、我們的增長機會以及我們公司的整體戰略框架。

I am so proud of our e.l.f. Beauty team for delivering strong results in the second quarter as we continue to navigate major category headwinds as a result of COVID-19. This is our seventh consecutive quarter of net sales growth, with Q2 net sales of $72 million, up 7% versus a year ago. We expanded gross margin to 65%, up approximately 100 basis points versus last year, and delivered adjusted EBITDA of $14 million, while increasing our investment in marketing and digital.

我為我們的 e.l.f 感到非常自豪。美容團隊在第二季度取得了強勁的業績，我們繼續應對因 COVID-19 造成的主要品類逆風。這是我們連續第七個季度淨銷售額增長，第二季度淨銷售額為 7200 萬美元，比去年同期增長 7%。我們將毛利率擴大至 65%，比去年增長約 100 個基點，調整後 EBITDA 達到 1,400 萬美元，同時增加了對營銷和數字化的投資。

We continue to grow share in the quarter with 5.5% of the color cosmetics market, up 100 basis points versus a year ago. We also took important next steps in our transformation to a multi-brand portfolio with the unveiling of Keys Soulcare, our groundbreaking new lifestyle beauty brand with Alicia Keys, and the launch of our recharged W3LL PEOPLE plant-powered Clean Beauty brand.

本季度我們的份額繼續增長，佔彩妝市場的 5.5%，比去年同期增長了 100 個基點。我們還採取了重要的後續步驟，向多品牌組合轉型，推出了我們與 Alicia Keys 合作的突破性新生活方式美容品牌 Keys Soulcare，以及推出了煥然一新的 W3LL PEOPLE 植物動力 Clean Beauty 品牌。

Before Mandy goes into more detail on our results, I want to share the key pillars underpinning our performance and talk about why I'm optimistic about the future of our brand portfolio. 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 are more important than ever before. The focus work behind our 5 strategic imperatives has continued to drive our outperformance relative to the category trends.

在曼迪詳細介紹我們的業績之前，我想先分享一下支撐我們業績的關鍵支柱，並談談為什麼我對我們品牌組合的未來持樂觀態度。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。我們的超級大國以能夠以平易近人的價格提供 100% 無殘忍、優質的美容產品為中心，並具有普遍吸引力，這一點比以往任何時候都更加重要。我們的 5 項戰略要務背後的重點工作繼續推動我們相對於類別趨勢表現出色。

We believe the strength of our platform gives us the ability to drive even greater value through strategic extensions like of Keys Soulcare and W3LL PEOPLE brands. Let me provide a few highlights from the quarter. Our first strategic imperative is to drive brand demand. We are driving greater brand relevance and expanding our consumer reach. Our press impressions soared over 160% versus prior year. In August, e.l.f. was named 1 of Beauty's Most Powerful Brands in 2020 by Women's Wear Daily. We also increased our rank in Piper Sandler's 40th semiannual teen survey from fourth favorite cosmetics brand amongst teens last year to second this year, reflecting strong appeal with Gen Z. e.l.f.'s social audience continues to grow double digits, reaching over 9 million followers to date across our digital ecosystem. We're expanding our existing footprint with deeper engagement on key platforms like TikTok, Instagram, YouTube, Snapchat and Pinterest, while continuing to test and learn our new frontiers. TikTok continues to be a great way for us to galvanize Gen Z and build awareness among other growing cohorts on the platform. The record-breaking viral success of our #eyelipsface hashtag challenge coupled with our #elfMagicAct hashtag challenge, heroing our $8 Poreless Putty Primer, collectively garnered nearly 10 billion views and 6 million user-generated videos.

我們相信，我們平台的優勢使我們能夠通過 Keys Soulcare 和 W3LL PEOPLE 品牌等戰略擴展來推動更大的價值。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。我們正在推動更大的品牌相關性並擴大我們的消費者範圍。我們的媒體印像比去年猛增 160% 以上。八月，e.l.f.被《女裝日報》評為2020年美容最具影響力品牌之一。我們還在Piper Sandler 第40 次半年度青少年調查中的排名從去年青少年最喜歡的化妝品品牌第四位上升到今年的第二位，反映出Z 世代的強大吸引力。 e.l.f. 的社交受眾繼續以兩位數增長，粉絲數量超過900 萬。我們的數字生態系統中的日期。我們正在通過在 TikTok、Instagram、YouTube、Snapchat 和 Pinterest 等關鍵平台上更深入的參與來擴大我們現有的足跡，同時繼續測試和學習我們的新領域。TikTok 仍然是我們激勵 Z 世代並在平台上其他不斷增長的群體中建立意識的好方法。我們的#eyelipsface 標籤挑戰破紀錄地獲得病毒式傳播成功，加上我們的#elfMagicAct 標籤挑戰，以我們價值8 美元的Poreless Putty Primer 為主角，總共獲得了近100 億次觀看次數和600 萬個用戶生成的視頻。

TikTok is taking note how e.l.f. is changing the game. And we're continuing to make history with the release of Eyes. Lips. Famous., the first ever TikTok reality show. Alongside other innovative activations, the engagement in our @elfyeah channel continues to outpace top beauty brands, and our products continue to go viral organically on the platform, resulting in sales surges.

TikTok 正在關注 e.l.f.正在改變遊戲規則。隨著 Eyes 的發布，我們將繼續創造歷史。嘴唇。Famous.，首個 TikTok 真人秀節目。除了其他創新活動之外，我們的 @elfyeah 頻道的參與度繼續超過頂級美容品牌，我們的產品繼續在平台上有機傳播，導致銷量激增。

Looking across our digital ecosystem, we recently hosted our fifth annual and first ever fully virtual Beautyscape. This event helps foster ongoing relationships with the influencer community and empowers beauty's rising stars with the opportunity to build a cosmetics and skin care collection that will be sold through a national retailer. This year's event called Beautyscape The Remix infuse the power of makeup and music, featuring 3 musical artists, including Grammy nominated global superstar, Tove Lo. Even the new virtual format, we saw participation grow over 90% year-over-year.

縱觀我們的數字生態系統，我們最近舉辦了第五屆年度盛會，也是有史以來第一次完全虛擬的 Beautyscape。該活動有助於培養與影響者社區的持續關係，並為美容界的後起之秀提供機會，打造將通過全國零售商銷售的化妝品和護膚品系列。今年的活動名為“Beautyscape The Remix”，融合了化妝和音樂的力量，邀請了 3 位音樂藝術家參加，其中包括格萊美提名的全球巨星 Tove Lo。即使是新的虛擬形式，我們也看到參與度同比增長超過 90%。

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（推介會）

I couldn't talk about our big brand moments without recognizing Kory Marchisotto, Chief Marketing Officer of e.l.f. Beauty; and President of Keys Soulcare, who is honored as one of Adweek's 2020 Brand Geniuses, recognizing the principal leaders behind the boldest and most imaginative marketing efforts. Kory is 1 of 10 brand geniuses, putting e.l.f. in an admirable company with leaders from Nike, Walmart, Apple, Verizon, P&G, PepsiCo and Disney Plus. Congrats Kory and our entire marketing team. Even with the success of our brand building activities, we still see a significant opportunity to bring in new consumers. In fact, our latest attitude and usage study shows that there is almost a 30 percentage point gap in our unedited consumer awareness as compared to some of the legacy color cosmetics brands. We're the fastest-growing among the top 5 color cosmetics brands in the U.S. and we see a lot of runway ahead.

在談論我們的大品牌時刻時，我不得不承認 e.l.f. 首席營銷官 Kory Marchisotto。美麗; Keys Soulcare 總裁，被《Adweek》評為 2020 年品牌天才之一，表彰最大膽、最具想像力的營銷活動背後的主要領導者。Kory 是 10 個品牌天才之一，她把 e.l.f.在一家令人欽佩的公司，領導者來自耐克、沃爾瑪、蘋果、威瑞森、寶潔、百事可樂和迪士尼+。恭喜 Kory 和我們整個營銷團隊。即使我們的品牌建設活動取得了成功，我們仍然看到了吸引新消費者的重要機會。事實上，我們最新的態度和使用情況研究表明，與一些傳統彩妝品牌相比，我們未經編輯的消費者認知度存在近 30 個百分點的差距。我們是美國排名前 5 的彩妝品牌中增長最快的，而且我們看到還有很大的發展空間。

This quarter, we took an important next step in our transformation to a multi-brand portfolio with the unveiling of Keys Soulcare, our groundbreaking new lifestyle beauty brand with Alicia Keys. This is not another celebrity beauty line. We see Keys Soulcare as a brand with long-term potential. 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 consumers across the globe.

本季度，我們在向多品牌組合轉型的過程中邁出了重要的下一步，推出了我們與 Alicia Keys 合作的突破性新生活方式美容品牌 Keys Soulcare。這不是另一個名人美容系列。我們認為 Keys Soulcare 是一個具有長期潛力的品牌。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全球廣大消費者的共鳴。

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（推介會）

The brand has already captured hearts and minds well ahead of our scheduled first product launch on December 3 with over 6.5 billion press impressions to date. The Keys Soulcare community is growing nicely with Instagram engagement metrics trending well above platform averages. It's clear now more than ever, the world is craving a brand with soul.

早在我們計劃於 12 月 3 日推出首款產品之前，該品牌就已經俘獲人心，迄今為止的媒體曝光量已超過 65 億次。Keys Soulcare 社區發展良好，Instagram 參與度指標遠高於平台平均水平。現在比以往任何時候都更加清楚的是，世界正在渴望一個有靈魂的品牌。

Last month, we also launched the recharge of W3LL PEOPLE, our plant-powered clean beauty brand, utilizing learnings from last year's e.l.f. brand recharge. At the core of this recharge is our brand vision because all people can be W3LL PEOPLE. As we strive to make clean beauty accessible. W3llpeople.com now reflects the brand's new vision of clean beauty with much more vibrant colors and messaging, along with updated content that really brings W3LL PEOPLE's plant-powered beauty to life. With a 360-degree marketing plan in place, we aim to broaden consumer awareness for this brand.

上個月，我們還利用去年 e.l.f. 的經驗，推出了植物動力清潔美容品牌 W3LL PEOPLE 的充值。品牌充值。此次充值的核心是我們的品牌願景，因為所有人都可以成為 W3LL PEOPLE。我們努力讓潔淨之美變得觸手可及。W3llpeople.com 現在通過更加鮮豔的色彩和信息以及真正將 W3LL PEOPLE 植物驅動的美麗變為現實的更新內容，反映了該品牌對潔淨美容的新願景。通過制定 360 度營銷計劃，我們的目標是擴大消費者對該品牌的認識。

Our second strategic imperative is a major step-up in digital. We continue to execute a digitally led strategy that is benefiting both elfcosmetics.com as well as our retail partner sites. Q2 digital consumption grew nearly triple digits versus a year ago, even as major brick-and-mortar location started to reopen around the globe. Elfcosmetics.com, the #1 mass cosmetics e-commerce site powers our digital ecosystem. We also saw strength in our retailer dot coms, and on Amazon, in particular, as we launched our new beauty store.

我們的第二個戰略要務是數字化方面的重大進步。我們繼續執行數字化主導戰略，該戰略使 elfcosmetics.com 以及我們的零售合作夥伴網站受益。儘管全球主要實體店開始重新開放，第二季度的數字消費仍比一年前增長了近三位數。Elfcosmetics.com 是排名第一的大眾化妝品電子商務網站，為我們的數字生態系統提供動力。當我們推出新的美容店時，我們還看到了零售商網絡公司的實力，尤其是亞馬遜。

Our digital channels expanded to 13% of our total business this quarter, up from 7% a year ago. The number of new consumers acquired in the quarter on elfcosmetics.com was up nearly 60% year-over-year, and we're encouraged by the retention and repeat purchase rates we're seeing. While the demographics of these new consumers look similar to our existing consumers, we're starting to see some differences. For example, our new consumers over-index on skin care and a greater percentage of these consumers are signing up for our Beauty Squad Loyalty Program.

本季度我們的數字渠道佔總業務的比例從一年前的 7% 擴大到 13%。本季度 elfcosmetics.com 上獲得的新消費者數量同比增長近 60%，我們看到的保留率和重複購買率令我們深受鼓舞。雖然這些新消費者的人口統計數據看起來與我們現有消費者相似，但我們開始看到一些差異。例如，我們的新消費者對皮膚護理的指數過高，並且這些消費者中有更大比例的人註冊了我們的 Beauty Squad 忠誠計劃。

Beauty Squad now has 2.1 million members, up almost 40% year-over-year. Our loyalty members purchase more frequently, have higher order values than our non loyalty members and collectively drive almost 70% of our sales on elfcosmetics.com. We're continuing to test and iterate and believe Beauty Squad has even greater potential to drive our business going forward. Looking at Keys Soulcare. Our launch of keyssoulcare.com is a start of an exciting journey that aims to transform the way the world engages with beauty. Keys Soulcare shares the soul of beauty with a focus on content, conversation and community. To this end, we're building a digital community well before consumers see product launch. On September 29, keyssoulcare.com went live with rich editorial and a weekly e-mail newsletter. The site features original and co-created content, including inspirational story from Alicia's community of lightworkers, people who collectively use their voices and platforms to spread light and positivity. It's clear that Keys Soulcare community is active, vocal and passionate about Alicia and the brand, and we're pleased with the strong engagement and open rates we're seeing with our weekly newsletters.

Beauty Squad 目前擁有 210 萬名會員，同比增長近 40%。我們的忠誠會員比非忠誠會員購買更頻繁，訂單價值更高，共同推動了 elfcosmetics.com 銷售額的近 70%。我們正在繼續測試和迭代，並相信 Beauty Squad 具有更大的潛力來推動我們的業務向前發展。看著Keys Soulcare。我們推出keysoulcare.com 是一段激動人心的旅程的開始，旨在改變世界與美麗接觸的方式。Keys Soulcare 分享美麗的靈魂，注重內容、對話和社區。為此，我們正在消費者看到產品發布之前建立一個數字社區。9 月 29 日，keysoulcare.com 上線，提供豐富的社論和每週電子郵件通訊。該網站以原創和共同創作的內容為特色，包括艾麗西亞光之工作者社區的勵志故事，這些人集體利用自己的聲音和平台傳播光和積極性。很明顯，Keys Soulcare 社區對 Alicia 和該品牌非常活躍、直言不諱且充滿熱情，我們對每週時事通訊中看到的強勁參與度和打開率感到滿意。

Our third strategic comparative center's on innovation. Across our brand portfolio, we pride ourselves on delivering 100% cruelty free, premium quality beauty products at accessible price points with universal appeal. 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 our track channel sales. We have the #1 or #2 position in all 5 segments and continue to drive market share gains in each. Our Camo Concealer and Poreless Putty Primer franchises, in particular, continue to be sources of strength, supporting ongoing share gains in their respective categories.

我們的第三個戰略比較中心是創新。在我們的品牌組合中，我們以實惠的價格提供 100% 零殘忍、優質的美容產品，並具有普遍吸引力，對此我們深感自豪。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，約占我們軌道渠道銷售額的一半。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。尤其是我們的迷彩遮瑕膏和無孔膩子底漆系列，繼續成為我們的實力源泉，支持各自類別的市場份額不斷增長。

Looking beyond our core offerings, we're humbled at the recognition our innovation efforts are receiving. In the highly coveted Annual Allure Best of Beauty Awards, e.l.f.'s Liquid Glitter Eyeshadow was highlighted as 1 of the best beauty steals. And W3LL PEOPLE's Expressionist Volumizing Mascara was highlighted as 1 of the best clean beauty products. In Influenster's 6th annual Reviewers' Choice Awards, determined by the products with the most buzz based on millions of influencer reviews. e.l.f.'s Poreless Putty Primer and Lock On Liner & Brow Cream were both recognized amongst the best in make up.

除了我們的核心產品之外，我們對我們的創新努力所獲得的認可感到謙卑。在備受矚目的年度 Allure Best of Beauty Awards 中，e.l.f. 的 Liquid Glitter Eyeshadow 被評為最佳美容產品之一。W3LL PEOPLE 的表現主義豐盈睫毛膏被評為最佳清潔美容產品之一。Influenster 第六屆年度評論者選擇獎，根據數百萬影響者評論評選出最熱門的產品。e.l.f. 的 Poreless Putty Primer 和 Lock On Liner & Brow Cream 均被公認為最好的化妝品之一。

Skin care remains a major focus in our innovation pipeline, and we're encouraged by the results that we're seeing. Across our business, our skin care consumption continues to outpace our color cosmetics trends with particularly strong skin care results on elfcosmetics.com. We're continuing to see growth behind e.l.f.'s best-selling Holy Hydration! franchise, both in stores and online, and we're also seeing strong results behind our Cannabis sativa, Full Spectrum CBD and Supers collections. We see a lot of runway in this category. For perspective, year-to-date skin care represents just 8% of our tracked channel consumption, but drives nearly 25% of our business on elfcosmetics.com.

皮膚護理仍然是我們創新渠道的主要焦點，我們對所看到的結果感到鼓舞。在我們的整個業務中，我們的護膚品消費繼續超過彩妝趨勢，在 elfcosmetics.com 上的護膚效果尤其強勁。我們繼續看到 e.l.f. 最暢銷的 Holy Hydration 背後的增長！特許經營權，無論是在商店還是在網上，我們也看到我們的 Cannabis sativa、Full Spectrum CBD 和 Supers 系列背後的強勁業績。我們在這個類別中看到了很多跑道。從長遠來看，今年迄今為止的護膚品僅占我們跟踪的渠道消費的 8%，但卻推動了 elfcosmetics.com 上近 25% 的業務。

We have additional e.l.f. skin care launches slated for the balance of this fiscal year that we expect to propel our momentum in the category. We expect our innovation efforts will be shining even brighter in the months to come with the launch of Keys Soulcare. Our first 3 products are scheduled to launch online on December 3 and will include a signature, sage and oat milk candle and 2 yet-to-be-revealed skincare products. We're planning on a global skin care collection launch in early 2021 on keyssoulcare.com and with our retail partners, both online and in stores. We have a multi-category, multi-year pipeline of innovation to drive the brand beyond the initial launch.

我們還有額外的 e.l.f.我們預計將在本財年剩餘時間推出護膚品，這將推動我們在該類別的發展勢頭。我們預計，隨著 Keys Soulcare 的推出，我們的創新努力將在未來幾個月內更加閃耀。我們的前 3 款產品計劃於 12 月 3 日在網上推出，其中包括一款招牌鼠尾草燕麥牛奶蠟燭以及 2 款尚未發布的護膚產品。我們計劃於 2021 年初在 keysoulcare.com 上並與我們的在線和商店零售合作夥伴一起推出全球護膚系列。我們擁有多類別、多年的創新渠道，以推動品牌超越最初的推出。

Our fourth strategic imperative is driving productivity with our national retail partners. We remain focused on our relative performance to key competition. Of the top 5 color cosmetics brands in the U.S., e.l.f. was the only one to post growth with our track channel color cosmetic sales up 3% year-over-year as compared to declines of almost 20% or more for each of the remaining brands. We were also the only brand to grow share in the quarter with 5.5% of the market, up 100 basis points year-over-year. Project Unicorn, our ongoing initiative to drive productivity with our national retail partners by improving assortment, presentation and navigation at shelf continues to impress retailers. During the quarter, our visual merchandising team developed stunning in-store signage and graphics with some of our largest customers, elevating our skin care collections and highlighting our best-selling products like Poreless Putty Primer, Camo Concealer and brow pencils. We're also finding innovative ways to translate our success on TikTok to stores.

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。我們仍然關注我們與主要競爭對手的相對錶現。在美國排名前 5 的彩妝品牌中，e.l.f.是唯一實現增長的品牌，我們的軌道渠道彩妝銷售額同比增長 3%，而其餘品牌的銷量均下降近 20% 或更多。我們也是本季度唯一一個份額增長的品牌，市場份額為 5.5%，同比增長 100 個基點。“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、展示和導航來提高全國零售合作夥伴的生產力，繼續給零售商留下深刻的印象。本季度，我們的視覺營銷團隊與一些最大的客戶一起開發了令人驚嘆的店內標牌和圖形，提升了我們的護膚系列，並突出了我們最暢銷的產品，如無孔膩子底漆、迷彩遮瑕膏和眉筆。我們還在尋找創新方法，將 TikTok 上的成功轉化為商店。

In September, we had an incredibly successful display program at Superdrug stores in the U.K. dedicated to what's trending on TikTok. It featured our most viral and trending products from the platform and sold out quickly.

9 月份，我們在英國的 Superdrug 商店舉辦了一個非常成功的展示項目，專門展示 TikTok 上的流行趨勢。它展示了我們平台上最具病毒性和最流行的產品，並很快售罄。

Given the strength of our productivity, innovation and consumer engagement, Walmart and Ulta Beauty expanded shelf space for e.l.f. towards the end of the quarter in a subset of their doors. For context, Target our most developed and longest-standing national retailer, and our store footprint as of FY '20 was approximately 11 feet on average. Our footprint in Walmart and Ulta stores is about half of that.

鑑於我們的生產力、創新能力和消費者參與度，沃爾瑪和 Ulta Beauty 擴大了 e.l.f. 的貨架空間。在本季度末，他們的一部分門中。就背景而言，塔吉特是我們最發達、歷史最悠久的全國性零售商，截至 20 財年，我們的商店佔地面積平均約為 11 英尺。我們在沃爾瑪和 Ulta 商店的足跡大約是其中的一半。

While our fall shelf space expansion helped narrow that gap somewhat, we see plenty of runway ahead. In fact, we're pleased to report that Ulta Beauty plans to expand space even further for the e.l.f. brand in spring 2021. Internationally, where we continue to have a lot of white space. We are also excited to launch in Spring 2021 at Shoppers Drug Mart, a leading beauty retailer in Canada.

雖然我們秋季貨架空間的擴張在一定程度上幫助縮小了這一差距，但我們看到前面還有很多跑道。事實上，我們很高興地報告，Ulta Beauty 計劃進一步擴大 e.l.f. 的空間。2021 年春季推出的品牌。在國際上，我們仍然有很多空白。我們還很高興於 2021 年春季在加拿大領先的美容零售商 Shoppers Drug Mart 推出產品。

In early 2021, Keys Soulcare will light up in a much bigger way with a planned global launch of our full skin care collection on keyssoulcare.com and with our retail partners, both online and in-store. For the U.S. specifically, our exclusive national retail partner is Ulta Beauty. We look forward to sharing much more on our plans with Ulta Beauty closer to launch. But what I can say is they share our enthusiasm for the long-term potential of the brand. In the coming months, we plan to unveil our international distribution partners as well.

2021 年初，Keys Soulcare 計劃在 keysoulcare.com 上以及與我們的在線和店內零售合作夥伴一起在全球範圍內推出我們的完整護膚系列，從而以更大的方式發光發熱。特別是在美國，我們的獨家全國零售合作夥伴是 Ulta Beauty。我們期待在臨近發佈時與 Ulta Beauty 分享更多關於我們的計劃。但我可以說的是，他們和我們一樣對品牌的長期潛力充滿熱情。在接下來的幾個月中，我們還計劃公佈我們的國際分銷合作夥伴。

We're also excited that 6 of W3LL PEOPLE's best-selling SKUs are now featured in all Ulta Beauty stores as part of Ulta's Conscious Beauty program. An initiative to provide consumers greater choices and transparency in clean beauty. W3LL PEOPLE was already sold on ulta.com, and this marks the brand's entry in Ulta stores. W3LL PEOPLE continues to raise the standard for high-performance plant-powered clean beauty.

我們還很高興看到，作為 Ulta Conscious Beauty 計劃的一部分，W3LL PEOPLE 的 6 個最暢銷 SKU 現在已在所有 Ulta Beauty 商店中展示。旨在為消費者提供更多清潔美容選擇和透明度的舉措。W3LL PEOPLE 已在 ulta.com 上銷售，這標誌著該品牌進入 Ulta 商店。W3LL PEOPLE 不斷提高高性能植物清潔美容的標準。

Our fifth strategic imperative is delivering cost savings to help fuel brand investments. Our operations team continues to generate cost savings via lean manufacturing techniques that have contributed to our strong gross margin rates. As just 1 example, our team's collective cost-saving efforts have driven a 15% reduction in cost per unit for our best-selling Camo Concealer franchise since its initial product launch. With the integration of W3LL PEOPLE into our supply chain now complete, we're also encouraged by the significant COGS savings we're seeing. These savings, in turn, allow us to invest in the W3LL PEOPLE brand recharge and sharpen our retail pricing for select products in line with the brand's vision to make clean beauty accessible.

我們的第五個戰略要務是節省成本，以幫助推動品牌投資。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。僅舉一個例子，自最初產品推出以來，我們團隊集體努力節省成本，使我們最暢銷的迷彩遮瑕膏系列產品的單位成本降低了 15%。隨著 W3LL PEOPLE 與我們供應鏈的整合現已完成，我們也對所看到的 COGS 大幅節省感到鼓舞。這些節省反過來又使我們能夠投資於 W3LL PEOPLE 品牌的補充，並根據該品牌讓潔淨美容觸手可及的願景提高特定產品的零售價格。

On the operations front, we did have a systems migration issue at our main distribution center during the latter part of the quarter, Which has caused a backlog in customer orders and higher out of stocks with some of our key customers. That said, we are confident in our ability to meet customer demand and are already starting to ship at higher rates. The progress on our 5 strategic imperatives has been terrific, and we believe we have further opportunity with each.

在運營方面，我們的主要配送中心在本季度後期確實遇到了系統遷移問題，這導致了客戶訂單積壓以及一些主要客戶的缺貨情況。也就是說，我們對滿足客戶需求的能力充滿信心，並且已經開始以更高的價格發貨。我們的 5 項戰略要務取得了巨大進展，我們相信每一項戰略都還有進一步的機會。

Before I turn the call over to Mandy, let me provide a bit more perspective on the overall strategic framework of the company and our brands. Our company was founded 16 years ago with a mission to make the best of beauty accessible to every eye, lip and face. Underpinned by the foundational work behind our 5 strategic imperatives, the strength of our platform allows us to expand our portfolio with strategic extensions that support our purpose and values. Our shared value system and deep commitment to diversity and inclusion are what connect us and fuel our actions. As we evolve from a single brand company into a diversified multi-brand portfolio, we strongly believe there's opportunity for significant value creation, leveraging the investments we've made in our world-class team and capabilities.

在將電話轉給 Mandy 之前，讓我對公司和我們品牌的整體戰略框架提供更多看法。我們公司成立於 16 年前，其使命是讓每個眼睛、嘴唇和臉部都能享受到最好的美麗。在我們 5 項戰略要務背後的基礎工作的支撐下，我們平台的優勢使我們能夠通過支持我們的目標和價值觀的戰略擴展來擴展我們的產品組合。我們共同的價值體係以及對多元化和包容性的堅定承諾將我們聯繫在一起並推動我們的行動。隨著我們從單一品牌公司發展成為多元化的多品牌組合，我們堅信，利用我們對世界一流團隊和能力的投資，有機會創造重大價值。

Each of our brands is positioned to touch diverse consumer cohorts at different price points. e.l.f. Cosmetics is trend driven beauty of extraordinary value in the mass segment, with average unit retails of approximately $5. W3LL PEOPLE is plant-powered clean beauty in the masstige segment with average unit retails for approximately $20. Keys Soulcare is lifestyle beauty and entry-level prestige with initial unit retails between $20 and $40. All 3 brands are accessible relative to their competitive set. Importantly, all 3 brands are complementary and incremental to the e.l.f. Beauty platform.

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。e.l.f.化妝品是大眾市場中具有非凡價值的潮流驅動型美容產品，平均單位零售價約為 5 美元。W3LL PEOPLE 是大眾市場中以植物為動力的清潔美容產品，平均單位零售價約為 20 美元。Keys Soulcare 是生活方式美容和入門級聲譽產品，初始單位零售價在 20 至 40 美元之間。相對於其競爭對手，這三個品牌都易於使用。重要的是，所有 3 個品牌都是 e.l.f. 的補充和增量。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 continuing to grow share regardless of category trends. We were strong entering the pandemic. And with our digital strength, core value proposition and ability to adapt at e.l.f. speed have continued to fuel our performance in this uncertain economy. With the strength of our 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，我們仍然專注於繼續增加份額。我們堅強地進入了大流行。憑藉我們的數字實力、核心價值主張和 e.l.f 的適應能力。在這個不確定的經濟環境中，速度繼續推動著我們的業績。憑藉我們更加多元化的品牌組合的優勢，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, and thank you all for joining us this afternoon. Today, I'll cover our Q2 financial results and fiscal 2021 guidance. We are quite pleased with our Q2 results. We delivered net sales of $72 million, up 7% from a year ago. This growth was mainly fueled by ongoing strength in e-commerce and international as well as growth in tracked channels. We also saw sequential improvement in our performance at Ulta relative to Q1 as stores reopened. From a cadence standpoint, tracked channel sales growth moderated through the quarter as expected, as stimulus dollars dried up, and we cycled the price increase implemented last year.

謝謝你，塔朗，也謝謝大家今天下午加入我們。今天，我將介紹我們第二季度的財務業績和 2021 財年指引。我們對第二季度的結果非常滿意。我們實現淨銷售額 7200 萬美元，比去年同期增長 7%。這一增長主要得益於電子商務和國際市場的持續強勁以及跟踪渠道的增長。隨著商店重新開業，我們還看到 Ulta 的業績相對於第一季度有所改善。從節奏的角度來看，隨著刺激資金枯竭，跟踪渠道銷售增長在本季度如預期放緩，並且我們循環去年實施的提價。

Gross margin of 65% was up approximately 100 basis points compared to prior year. Similar to the last several quarters, we saw gross margin benefits from margin accretive product mix and cost savings, a favorable FX impact and a mix shift to elfcosmetics.com. These benefits were partially offset by the impact of tariffs and certain costs associated with space expansion. Additionally, our year-over-year gross margin improvement moderated relative to last quarter as expected, with cycling the price increases we took last year.

毛利率為 65%，比上年增長約 100 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和成本節約、有利的外匯影響以及向 elfcosmetics.com 的組合轉變。這些好處部分被關稅的影響和與空間擴張相關的某些成本所抵消。此外，隨著去年價格上漲的循環，我們的毛利率同比增幅與上季度相比有所放緩，正如預期的那樣。

On an adjusted basis, SG&A as a percentage of sales was 51% or approximately flat compared to last year at 51%. The marketing and digital investment for the quarter was approximately 15% of net sales versus 14% a year ago. For the first half, marketing and digital spend as a percentage of sales was 14%, in line with our expectations. Q2 adjusted EBITDA was $14 million, down 4% to last year, and adjusted EBITDA margin was approximately 20% of net sales.

調整後，SG&A 佔銷售額的百分比為 51%，與去年的 51% 基本持平。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 14%。上半年，營銷和數字支出佔銷售額的百分比為 14%，符合我們的預期。第二季度調整後 EBITDA 為 1400 萬美元，比去年下降 4%，調整後 EBITDA 利潤率約為淨銷售額的 20%。

Adjusted net income was $8 million or $0.16 per diluted share compared to $8 million or $0.15 per diluted share a year ago. Our liquidity remains strong with a combination of our cash balance and access to our revolving credit facility sitting at over $90 million.

調整後淨利潤為 800 萬美元，即稀釋後每股收益 0.16 美元，而一年前為 800 萬美元，即稀釋後每股收益 0.15 美元。我們的現金餘額和循環信貸額度超過 9000 萬美元，流動性依然強勁。

For the 6 months ended September 30, we generated $3 million in cash flow from operations and reduced our capital expenditures by $3 million versus prior year. We ended the quarter with $41 million in cash on hand compared to a cash balance of $59 million a year ago. This was driven by increased investment in inventory to support space expansion and new distribution for spring 2021. We expect our cash priorities for the balance of this year to focus on investing behind our 5 strategic imperatives, supporting the launch of Keys Soulcare and our W3LL PEOPLE brand recharge.

截至 9 月 30 日的 6 個月，我們的運營現金流量為 300 萬美元，資本支出比去年減少了 300 萬美元。本季度結束時，我們手頭現金為 4100 萬美元，而一年前的現金餘額為 5900 萬美元。這是由於增加庫存投資以支持 2021 年春季的空間擴張和新分銷而推動的。我們預計今年剩餘時間的現金優先事項將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。

As we mentioned the last quarter, we expect $5 million to $7 million in inventory and CapEx investments behind Keys Soulcare and W3LL PEOPLE in fiscal 2021, in addition to certain costs that we are treating as onetime expenses related to integration and brand development.

正如我們在上個季度提到的，我們預計2021 財年Keys Soulcare 和W3LL PEOPLE 的庫存和資本支出投資將達到500 萬至700 萬美元，此外我們將某些成本視為與整合和品牌開發相關的一次性費用。

Now let's turn to our outlook for the remainder of fiscal 2021. There are still many uncertainties around the duration and impact of COVID-19 as well as the general economic environment. However, we believe our visibility is improving.

現在讓我們談談對 2021 財年剩餘時間的展望。COVID-19 的持續時間和影響以及總體經濟環境仍存在許多不確定性。然而，我們相信我們的知名度正在提高。

As a result of our strong performance in the first half of the year and confidence in our ability to continue to execute our long-term strategy, we are now providing guidance for fiscal 2021. For the full year fiscal 2021, we expect net sales growth of approximately 5% to 7% versus fiscal 2020. We expect adjusted EBITDA between $57 million and $60 million, adjusted net income between $31 million and $33 million and adjusted EPS of $0.59 to $0.63 per share on a fully diluted basis.

由於我們上半年的強勁表現以及對繼續執行長期戰略的能力充滿信心，我們現在為 2021 財年提供指導。對於 2021 財年全年，我們預計淨銷售額較 2020 財年增長約 5% 至 7%。我們預計調整後的EBITDA 在5700 萬美元至6000 萬美元之間，調整後的淨利潤在3100 萬美元至3300 萬美元之間，調整後的每股完全攤薄後每股收益為0.59 美元至0.63 美元。

It's important to note that our guidance assumes no significant disruption to our consumers, customers or supply chain for the remainder of fiscal 2021. Let me provide you with a little more color on our planning assumptions for the remainder of the year. Let's start with the top line. We expect consumer behavior to remain impacted by COVID-19 through the rest of our fiscal year, which will likely continue to pressure both in-store shopping levels and cosmetics category trends. Specific to tracked channels, we anticipate Nielsen trends to inflect negative in the coming weeks as we resolve the out of stocks, Tarang mentioned, related to the system migration at our main distribution center. That said, we are confident in our ability to meet customer demand and are already starting to ship at higher rates.

值得注意的是，我們的指引假設 2021 財年剩餘時間內我們的消費者、客戶或供應鏈不會受到重大干擾。讓我為您提供更多關於我們今年剩餘時間的計劃假設的信息。讓我們從頂行開始。我們預計，在本財年剩餘時間內，消費者行為仍將受到 COVID-19 的影響，這可能會繼續對店內購物水平和化妝品類別趨勢構成壓力。Tarang 提到，具體到跟踪渠道，我們預計尼爾森趨勢將在未來幾週內出現負面影響，因為我們解決了與我們主要配送中心的系統遷移相關的缺貨問題。也就是說，我們對滿足客戶需求的能力充滿信心，並且已經開始以更高的價格發貨。

Importantly, we expect to deliver top line growth in the second half as reflected in our guidance. Let me step you through a few of the building blocks.

重要的是，我們預計下半年將實現營收增長，正如我們的指導所反映的那樣。讓我帶您了解一些構建模塊。

First, we remain focused on our relative performance to the mass color cosmetics category and are optimistic around our ability to continue to grow share. Second, we expect our second half trends will benefit from the recent space expansion in Walmart and Ulta Beauty as well as pipeline related to new distribution in spring 2021 with Shoppers Drug Mart in Canada and Ulta Beauty. Third, we believe our digitally led strategy will result in strong e-commerce trends throughout the year, although likely moderating from the levels we saw in the first half.

首先，我們仍然關注我們與大眾彩妝類別的相對錶現，並對我們繼續增長份額的能力持樂觀態度。其次，我們預計下半年的趨勢將受益於沃爾瑪和 Ulta Beauty 最近的空間擴張，以及與 2021 年春季與加拿大 Shoppers Drug Mart 和 Ulta Beauty 進行新分銷相關的管道。第三，我們相信我們的數字主導戰略將在全年帶來強勁的電子商務趨勢，儘管可能會比我們上半年看到的水平有所放緩。

Lastly, we anticipate a modest net sales contribution from the launch of Keys Soulcare in fiscal 2021. These top line drivers will be partially offset by tougher year-over-year comparisons in Q4 and as we anniversary the strong 16% net sales growth we saw last year as well as less incremental merchandising on a year-over-year basis in Target starting in Q4.

最後，我們預計 2021 財年 Keys Soulcare 的推出將帶來適度的淨銷售額貢獻。這些營收驅動因素將被第四季度更嚴峻的同比比較所部分抵消，並且在我們去年實現16% 強勁淨銷售額增長的周年紀念日，以及Target 開始的同比增量銷售減少的情況下，這些收入驅動因素將被部分抵消。在第四季度。

Turning now to adjusted EBITDA. 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. We continue to focus on reducing expenses where we can while still investing in our long-term growth. That said, we do have 2 specific factors that will pressure our adjusted EBITDA margins in the second half relative to the first half. First, on FX. We purchase almost all of our product in China in RMB, and favorable FX rates have driven a gross margin benefit of approximately 100 to 200 basis points on average over the last several quarters.

現在轉向調整後的 EBITDA。我們預計我們的幾個潛在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。我們繼續專注於盡可能減少開支，同時仍投資於我們的長期增長。也就是說，我們確實有兩個具體因素會對下半年調整後的 EBITDA 利潤率（相對於上半年）造成壓力。首先，關於外匯。我們在中國的幾乎所有產品均以人民幣購買，有利的匯率使得過去幾個季度的毛利率平均提高了約 100 至 200 個基點。

Based on current exchange rates, we expect that FX benefit to moderate through the year and will likely inflect to a gross margin headwind starting in Q4. Second, on Keys Soulcare. As I mentioned, Keys Soulcare is expected to contribute a modest amount to our top line this fiscal year. So we expect gross margin for the brand to be relatively neutral to our overall gross margin. In addition, we expect to have an incremental $5 million to $6 million in marketing spend in the second half, which has an outsized impact as we invest ahead of the brand launch. This will take our marketing spend as a percentage of sales up to approximately 14% to 16% on a full year basis.

根據當前匯率，我們預計全年外匯收益將放緩，並可能從第四季度開始對毛利率造成不利影響。其次，關於Keys Soulcare。正如我所提到的，Keys Soulcare 預計為本財年為我們的營收做出一定貢獻。因此，我們預計該品牌的毛利率與我們的整體毛利率相對中性。此外，我們預計下半年的營銷支出將增加 500 萬至 600 萬美元，這對於我們在品牌推出之前進行投資會產生巨大影響。這將使我們的營銷支出佔全年銷售額的比例達到約 14% 至 16%。

From a cadence standpoint, we expect top line growth to be more weighted to Q3 than Q4, largely due to the timing of our planned distribution expansion as well as much tougher compares as we anniversary the 16% net sales growth we saw in Q4 last year. We expect adjusted EBITDA margins will be more pressured in Q4 than Q3, given the dynamics we just discussed on the top line, anticipated FX headwinds and incremental Keys Soulcare marketing spend that is largely concentrated to Q4. Let me now take a step back to talk about our long-term economic model and why we're optimistic about the future.

從節奏的角度來看，我們預計第三季度的收入增長將比第四季度更重要，這主要是由於我們計劃的分銷擴張的時機以及去年第四季度16% 的淨銷售額增長周年紀念日時進行的更嚴格的比較。考慮到我們剛剛討論的營收動態、預期的外匯逆風以及主要集中在第四季度的Keys Soulcare 營銷支出增量，我們預計第四季度調整後的EBITDA 利潤率將比第三季度承受更大的壓力。現在讓我退一步談談我們的長期經濟模式以及為什麼我們對未來感到樂觀。

With fiscal 2021 as the base, as we look out over the next 3 years, we believe we can achieve compounded annual top line growth in the mid- to high single digits from the combination of e.l.f. brand growth and shelf space gains along with contributions from our strategic extensions by Keys Soulcare and W3LL PEOPLE brands. We anticipate adjusted EBITDA leverage will be achieved through a mix of top line growth and leverage on COGS and or SG&A, over that 3-year horizon.

以 2021 財年為基礎，展望未來 3 年，我們相信，通過 e.l.f. 的組合，我們可以實現中高個位數的複合年度營收增長。品牌增長和貨架空間增加，以及 Keys Soulcare 和 W3LL PEOPLE 品牌戰略擴展的貢獻。我們預計，在這三年內，調整後的 EBITDA 槓桿將通過營收增長和銷貨成本和/或銷售及管理費用槓桿相結合來實現。

Our brand portfolio reflects our deep commitment to inclusive, accessible and cruelty-free beauty. We believe that our digital strength, core value proposition and ability to adapt at e.l.f. speed will continue to fuel our performance. Importantly, we believe Keys Soulcare and W3LL PEOPLE are both distinctive and complementary to our portfolio, and allow us to leverage the cost structure we have in place as we scale them up. While there are still many uncertainties in the operating environment in the short term, I am confident in our ability to deliver.

我們的品牌組合體現了我們對包容、平易近人且零殘忍的美麗的堅定承諾。我們相信，我們的數字實力、核心價值主張和 e.l.f. 的適應能力。速度將繼續推動我們的業績。重要的是，我們相信 Keys Soulcare 和 W3LL PEOPLE 對我們的產品組合來說既獨特又互補，使我們能夠在擴大規模時利用現有的成本結構。雖然短期內經營環境還存在很多不確定性，但我對我們的交付能力充滿信心。

Our performance over the last 7 quarters, both on an absolute basis and relative to the category, give us confidence in our ability to continue to execute our long-term strategy. With that, operator, you may open the call to questions. (Operator Instructions).

我們過去 7 個季度的表現，無論是絕對基礎還是相對於類別的表現，都讓我們對繼續執行長期戰略的能力充滿信心。這樣，接線員，您就可以開始提問。（操作員說明）。

(Operator Instructions). Our first question comes from Erinn Murphy with Piper Sandler.

（操作員說明）。我們的第一個問題來自艾琳·墨菲和派珀·桑德勒。

My question is around inventory. The balance was up kind of 26%, I believe, at the end of the quarter. Could you just maybe walk through some of the components around how much was shelf space gains, maybe the operational hiccups, excuse me, that you saw in the quarter? And then maybe the build for Keys Soulcare? And then where do you expect inventory to be by the end of the third quarter?

我的問題是關於庫存的。我相信，到本季度末，餘額增長了 26%。您能否簡單介紹一下您在本季度看到的貨架空間增益的一些組成部分，也許是運營問題？然後也許是 Keys Soulcare 的構建？那麼您預計到第三季度末庫存會是多少？

Erinn, so let me first say that we feel great about our inventory levels. As you look at the cash flow statement, March was particularly low as we were managing through the initial onset of COVID. And so as you look at our inventory today, we've talked about pipeline that is related to space gains. We also talked about the system migration issue that shifted inventory from Q2 into Q3. And so -- and also, you mentioned -- yes, space gains picked up within the quarter. All of those things are playing a role into our current inventory balance. And we feel like we're in a much healthier place right now.

艾琳，首先我要說的是，我們對庫存水平感覺良好。從現金流量表來看，3 月份的現金流特別低，因為我們正在應對新冠疫情的初期爆發。因此，當您今天查看我們的庫存時，我們討論了與空間收益相關的管道。我們還討論了將庫存從第二季度轉移到第三季度的系統遷移問題。所以——而且，你也提到過——是的，本季度空間收益有所回升。所有這些因素都對我們當前的庫存平衡產生影響。我們感覺現在我們處於一個更健康的地方。

Okay. And then if I could ask a separate question on Keys Soulcare. Could you just maybe walk through the broader launch plan as we think about 2021, just given the price point positioning, are there -- is there an opportunity to work with new retailers that maybe you don't work with currently with both W3LL PEOPLE and e.l.f. and just help us think about the cadence as we look to the end -- or next year, excuse me.

好的。然後我能否就 Keys Soulcare 提出一個單獨的問題。當我們考慮 2021 年時，您能否介紹一下更廣泛的發布計劃，考慮到價格點定位，是否有機會與新零售商合作，而您目前可能沒有與 W3LL PEOPLE 和 W3LL PEOPLE 合作？ e.l.f.幫助我們思考一下最後的節奏——或者明年，對不起。

Erinn, we're really excited about our launch on Keys Soulcare. So as you know, the site is already up and running, keyssoulcare.com. We led with content, community and conversation, and the response has been terrific so far in terms of how people are responding to this new beauty lifestyle brand. In December, December 3, we start our commerce with our first 3 items, sage oat milk candle as well as 2 other skin care products that will go on sale on keyssoulcare.com as well as Ulta Beauty in ulta.com. In early 2021, we'll expand that range to a full line of skin care products, so both online on keyssoulcare.com as well as ulta.com and then layer in Ulta Beauty stores. So we're quite excited about the full range that will be going out the door by the end of this fiscal year and have plans beyond that to enter other categories and new other products as our normal cadences. As well as -- yes, thank you. And I should just add, our initial -- the only customer that we've disclosed so far is Ulta Beauty, where we'll be exclusively in the U.S. in the coming months, we will also discuss some of our global retail partners as this will be a global brand in 2021.

Erinn，我們對 Keys Soulcare 的推出感到非常興奮。如您所知，該網站 keysoulcare.com 已經啟動並運行。我們以內容、社區和對話為主導，到目前為止，人們對這個新的美容生活方式品牌的反應非常好。12 月，即 12 月 3 日，我們開始銷售前 3 款產品，即鼠尾草燕麥牛奶蠟燭以及其他 2 款護膚產品，這些產品將在keysoulcare.com 以及 ulta.com 上的 Ulta Beauty 上發售。2021 年初，我們將把該系列產品擴展到全系列護膚產品，首先在keysoulcare.com 和ulta.com 上在線銷售，然後在Ulta Beauty 商店中銷售。因此，我們對本財年末將推出的全系列產品感到非常興奮，併計劃除此之外，按照我們的正常節奏進入其他類別和新的其他產品。還有——是的，謝謝。我應該補充一點，我們最初的——迄今為止我們披露的唯一客戶是 Ulta Beauty，我們將在未來幾個月內專門在美國開展業務，我們還將討論我們的一些全球零售合作夥伴，因為2021年將成為全球品牌。

(Operator Instructions) Our next question will come from Linda Bolton-Weiser with D.A. Davidson.

（操作員說明）我們的下一個問題將由 Linda Bolton-Weiser 和 D.A. 提出。戴維森。

I guess I can do the math on this, but if you were to exclude the incremental spending on the Keys Soulcare launch, I think you said it was $5 million to $6 million. Would EBITDA be up year-over-year in the second half?

我想我可以對此進行數學計算，但如果您排除 Keys Soulcare 發布的增量支出，我想您說的是 500 萬至 600 萬美元。下半年 EBITDA 會同比增長嗎？

Linda, yes. So as we look at the full year, the $5 million to $6 million we're layering on for Keys Soulcare, if you take that out, we would be $5 million to $6 million higher on the year from an EBITDA standpoint. So that would put you ahead of last year if you look at the guidance range we provided.

琳達，是的。因此，當我們審視全年時，我們為 Keys Soulcare 投入的 500 萬至 600 萬美元，如果將其剔除，從 EBITDA 的角度來看，我們今年將增加 500 萬至 600 萬美元。因此，如果您查看我們提供的指導範圍，那麼您將領先於去年。

And then can I just fit in longer term, you're very committed, I think, to growing your EBITDA faster than your revenue growth as a long-term objective. Is that the case even in years where you may have future launches? Or is there an exception in a year when you have a launch?

然後我可以從長遠來看，我認為您非常致力於將 EBITDA 增長速度快於收入增長作為長期目標。即使在您未來可能推出產品的年份也是如此嗎？或者發布的那一年有例外嗎？

So Linda, the long-term economic model that we've outlined is a 3-year model, and it's based on a 3-year CAGR. As you look over -- in a 3-year time frame, we do expect adjusted EBITDA to outpace net sales growth. And so that you're really looking at that beginning and ending point for your measurement.

琳達，我們概述的長期經濟模型是一個 3 年模型，它基於 3 年復合年增長率。正如您所看到的那樣，在 3 年的時間範圍內，我們確實預計調整後的 EBITDA 將超過淨銷售額的增長。這樣您就可以真正看到測量的起點和終點。

Our next question comes from Dara Mohsenian with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Dara Mohsenian。

So a couple of questions around the Soulcare business. Tarang, you sound excited about it. Can you give us some type of thought process for the ultimate size of where that business could be longer-term maybe what the best brand comps are in the marketplace, just as we think about the revenue size of the brand or some type of order of magnitude? Or how you think about it relative to your existing business? And then incrementality of that brand relative to your existing business? And then just second on the spend you mentioned in the back half of the year. As we look at the spend for that brand going forward, is it more incremental to what you typically would be spending at the company? Can it be handled more within the existing budget in terms of a reallocation? How do you think about that longer-term ahead of obviously, some upfront spending in the back half of the year this year.

關於 Soulcare 業務有幾個問題。Tarang，你聽起來很興奮。您能否為我們提供某種思考過程，以了解該業務可能長期發展的最終規模（也許是市場上最好的品牌比較），就像我們考慮品牌的收入規模或某種類型的訂單一樣震級？或者您如何看待它與您現有業務的關係？然後該品牌相對於您現有業務的增量？然後是你在下半年提到的支出。當我們審視該品牌未來的支出時，它是否比您通常在公司的支出更多？能否在現有預算範圍內通過重新分配進行更多處理？您如何看待今年下半年明顯的長期支出？

Well, Dara, we are tremendously excited about Keys Soulcare because we are creating something, we believe, is completely new in the category. Lifestyle Beauty brand really aimed at nourishing your soul and so starting with content and then going into product. In terms of the business size, we're building this for the long term. So we said that it will have a modest sales contribution this fiscal year. But -- and we'll maybe later disclose kind of what size range it would be. We're starting in skin care, so you can usually use comps in terms of other skincare brands as a starting point. But it's even beyond skincare because this will go into multiple categories. I think one of the things that gives us heart beyond our own excitement for the brand is just how excited Ulta Beauty is, and we'll be partnering with them to launch this brand and the level of support they're going to put behind the brand in terms of what they really believe for the long term.

好吧，Dara，我們對 Keys Soulcare 感到非常興奮，因為我們相信我們正在創造一些在該類別中全新的東西。生活方式美容品牌的真正目的是滋養您的靈魂，因此從內容開始，然後進入產品。就業務規模而言，我們的建設是長期的。所以我們說它將在本財年做出適度的銷售貢獻。但是——我們稍後可能會透露它的尺寸範圍。我們從護膚開始，因此您通常可以使用其他護膚品牌的比較作為起點。但它甚至超出了護膚品的範疇，因為它會分為多個類別。我認為，除了我們對這個品牌的興奮之外，讓我們感到興奮的事情之一就是 Ulta Beauty 是多麼興奮，我們將與他們合作推出這個品牌，以及他們將為這個品牌提供的支持水平他們真正相信的長期品牌。

And then in terms of spend, we would put the spend in the context of the overall percentage of the company. So each brand that we have between W3LL PEOPLE, Keys Soulcare and e.l.f. Cosmetics really have their own spend levels that we use to support the brand. And so the overall 14% to 16% that Mandy gave is a comfortable level for us right now. In terms of being able to support all 3 brands. And again, we'll update on that as we get into the launch here.

然後就支出而言，我們會將支出放在公司總體百分比的背景下。因此，我們擁有 W3LL PEOPLE、Keys Soulcare 和 e.l.f. 等各個品牌。化妝品確實有自己的支出水平，我們用它來支持品牌。因此，Mandy 給出的總體 14% 到 16% 目前對我們來說是一個舒適的水平。就能夠支持所有 3 個品牌而言。再次，當我們在這裡發佈時，我們將更新這一點。

Our next question comes from Steph Wissink with Jefferies.

我們的下一個問題來自 Jefferies 的 Steph Wissink。

Mandy, I have a clarification question on the system migration. It sounds like that was detrimental to your sales growth in the quarter. I'm wondering if you can help us quantify what that holdback might have been. And then, Tarang, for you, just a question following up on Keys Soulcare. The gross margin structure being net neutral for the company was a bit below what we would see typically for a prestige skin care business? And maybe talk a little bit about the gross margin neutrality, does that include a royalty or something unique that would benchmark you differently than what we see in the broader marketplace?

Mandy，我有一個關於系統遷移的澄清問題。聽起來這對您本季度的銷售增長不利。我想知道您是否可以幫助我們量化這種阻礙可能是什麼。然後，Tarang，我想問一個關於 Keys Soulcare 的後續問題。該公司淨中性的毛利率結構略低於我們通常看到的高端護膚業務的毛利率結構？也許可以談談毛利率中性，這是否包括特許權使用費或一些獨特的東西，可以讓你的基準與我們在更廣泛的市場中看到的不同？

Steph. Okay. I'll take the first question, and then I'll pass it to Tarang on Keys Soulcare. On the system migration, we did have shipments shift out of Q2 into Q3. We have not put a dollar amount on that publicly, but I will say that it did contribute to the higher inventory levels we did have coming into the quarter. And we'll also be kind of a building block, if you think about it for how our second half forecast will come together and is already implied there in the guidance.

斯蒂芬.好的。我將回答第一個問題，然後將其傳遞給 Keys Soulcare 上的 Tarang。在系統遷移方面，我們確實將出貨量從第二季度轉移到了第三季度。我們還沒有公開透露具體金額，但我想說，這確實導致了我們進入本季度的庫存水平較高。如果您考慮一下我們的下半年預測將如何整合，並且已經在指南中暗示，那麼我們也將成為一個基石。

And then maybe just building to that the system migration issue was related to our Ontario, California distribution center, which is our largest distribution center. We have a third-party logistics provider that had a long-planned migration in their warehouse management system and ran into a hiccup. It's one of the reasons we shipped less and why you have some higher out of stocks right now. The good news is we're already past that issue. We're shipping at much higher rates and quickly catching up in terms of our in-stock positions with our customers.

然後也許只是建立系統遷移問題與我們安大略省、加利福尼亞州的配送中心有關，這是我們最大的配送中心。我們有一家第三方物流提供商，他們的倉庫管理系統進行了長期計劃的遷移，但遇到了問題。這是我們發貨量減少的原因之一，也是目前缺貨較多的原因之一。好消息是我們已經解決了這個問題。我們的發貨速度要高得多，並且我們的庫存狀況很快就能趕上客戶。

And then on your second question regarding Keys Soulcare. The product margin is actually higher than the overall e.l.f. average gross margin, but it does include, to get to the gross margin, you do have a royalty in the form of both cash as well as e.l.f. equity. We like that structure quite a bit because it really ties into our longer-term vision for the brand and really aligning our interest with Alicia Keys. In terms of what we're building here for the long term. And that's why the overall gross margin's in line with the company.

然後是關於 Keys Soulcare 的第二個問題。產品利潤率實際上高於整體 e.l.f.平均毛利率，但它確實包括，為了達到毛利率，你確實有現金和電子形式的特許權使用費。公平。我們非常喜歡這種結構，因為它確實與我們對品牌的長期願景緊密相關，並且真正使我們的興趣與艾麗西亞·凱斯保持一致。就我們在​​這裡的長期建設而言。這就是為什麼整體毛利率與公司一致。

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 numbers. My question is how we should be thinking the second half top line growth, in particular Q4 in terms of the new distribution. I'm assuming you're still going to get some of that benefit from Walmart and also Ulta. And second, on the clarification on the comment that Mandy and just now also, Tarang, you made on the Keys Soulcare profitability. Should we be thinking of the $5 million to $6 million marketing launch expenditure to be recurring? And then you're going to build up to that margin and to get the leverage throughout the fiscal '21. I'm just like thinking of like the international -- sorry, fiscal '22 through '24 because you're doing bad in your long-term algorithm that your margin is going to expand more. But I'm just thinking like it will be more gradual assuming it depends -- it will depend on the top line we are accelerating. Is that a fair assumption?

恭喜你的數字。我的問題是我們應該如何思考下半年的營收增長，特別是第四季度的新分配。我假設你仍然會從沃爾瑪和 Ulta 獲得一些好處。其次，關於 Mandy 和 Tarang 對 Keys Soulcare 盈利能力的評論的澄清。我們是否應該考慮重複 500 萬至 600 萬美元的營銷啟動支出？然後你將積累到這個利潤並在整個 21 財年獲得槓桿作用。我就像國際一樣思考——抱歉，22 財年到 24 財年，因為你的長期算法做得不好，你的利潤將會擴大更多。但我只是想，假設這取決於我們正在加速的營收線，那麼它會更加漸進。這是一個公平的假設嗎？

Right. Okay. Yes. Andrea, let me start with your first question on the second half top line growth and the assumptions around there. So as we talked on our prepared remarks, we, one, do believe that there's going to continue to be volatility within the color cosmetic category, but we are confident that we will continue to gain share in the category. So I would say our second half trends will benefit from the space expansion that we've had recently in Walmart and Ulta Beauty. That was in the fall. Additionally, we'll also benefit from new distribution that we're picking up in the spring with Shoppers in Canada and then also additional space expansion that we will get in spring 2021 with Ulta Beauty as well.

正確的。好的。是的。安德里亞，讓我從你關於下半年營收增長和相關假設的第一個問題開始。因此，當我們談論準備好的評論時，我們確實相信彩妝類別將繼續出現波動，但我們有信心我們將繼續獲得該類別的份額。所以我想說，我們下半年的趨勢將受益於我們最近在沃爾瑪和 Ulta Beauty 的空間擴張。那是在秋天。此外，我們還將受益於我們在春季與加拿大的 Shoppers 合作的新分銷，以及我們將於 2021 年春季與 Ulta Beauty 合作的額外空間擴展。

Third, we believe that e-commerce will continue to be a driving force in our net sales performance, though likely moderating from the levels that we've seen earlier in this year as consumer behavior kind of starts to stabilize or shift back to the brick-and-mortar side. So I would say those things, plus the modest contribution that we're expecting from Keys Soulcare are really the top line drivers that we're looking at for the second half.

第三，我們相信電子商務將繼續成為我們淨銷售業績的驅動力，儘管隨著消費者行為開始穩定或回歸實體，電子商務的水平可能會比今年早些時候看到的水平有所放緩迫擊砲方面。所以我想說的是，這些事情，加上我們期望 Keys Soulcare 做出的適度貢獻，確實是我們下半年期待的頂線驅動因素。

And then on Keys Soulcare, the $5 million to $6 million, that is really related to the launch of Keys Soulcare. It's too early to tell. We haven't given fiscal '22 guidance yet and how to think about that marketing spend on a longer-term horizon. But I would say that, that $5 million to $6 million that we're talking about for now is really in preparation for the launch of the brand here in the next quarter or so.

然後是 Keys Soulcare，500 萬到 600 萬美元，這確實與 Keys Soulcare 的推出有關。現在說還為時過早。我們尚未給出 22 財年指導以及如何從長期角度考慮營銷支出。但我想說的是，我們現在討論的 500 萬至 600 萬美元實際上是為下個季度左右推出該品牌做準備。

Super helpful. And then just to -- e-commerce represented how much again, I'm sorry if I missed during the quarter from your sales?

超級有幫助。然後，電子商務又代表了多少，如果我在本季度錯過了你們的銷售，我很抱歉？

I don't think we've provided the percentage of e-commerce. Oh, we did. 13%, sorry, of the total net sales that we had in the quarter.

我認為我們沒有提供電子商務的百分比。哦，我們做到了。抱歉，占我們本季度總淨銷售額的 13%。

Our next question comes from Oliver Chen with Cowen.

我們的下一個問題來自奧利弗·陳和考恩。

Congrats on the expansion at Walmart and Ulta. As that happens, what should we know about product changes or the products that will be incremental? And are there thoughts around mix? We're curious about skin care. As that continues to really succeed, how are you thinking about breadth versus depth in skin care indoor mix and innovation happening there with the assortment. I would also just love your thoughts on community and Keys Soulcare. It seems like it's a core tenet of what you're doing there. And how you might contrast that against the community you've built at e.l.f.?

祝賀沃爾瑪和 Ulta 的擴張。當這種情況發生時，我們應該了解哪些有關產品變更或增量產品的信息？關於混合有什麼想法嗎？我們對皮膚護理感到好奇。隨著這種做法繼續取得真正的成功，您如何考慮室內護膚組合的廣度與深度以及該品種中發生的創新。我也很想听聽您對社區和 Keys Soulcare 的想法。這似乎是你在那裡所做的事情的核心原則。您如何將其與您在 e.l.f. 建立的社區進行對比？

Oliver. So I'll tell you, first of all, in terms of our expansion, 1 of the reasons we're excited about space expansion, is other than Target, which is our longest-standing national retail account, where we had about 11 feet of linear space at the end of FY '20. Really, every other customer has about less than half that space. So getting more space at Walmart and Ulta Beauty were important in our journey to get the right footprint on e.l.f.. And as we pick up space, one of the real strengths we have is our innovation program and the new items we have across our entire line. It's 1 of the reasons we've been able to sustain growth in a challenged category across face, eyes, lips, tools and skin care.

奧利弗.所以我要告訴你，首先，就我們的擴張而言，我們對空間擴張感到興奮的原因之一是Target 以外的原因，Target 是我們歷史最悠久的全國零售客戶，我們在那裡有大約11 英尺的空間20 財年末的線性空間。事實上，其他所有顧客的空間大約都不到這個空間的一半。因此，在沃爾瑪和 Ulta Beauty 獲得更多空間對於我們在 e.l.f. 上留下正確足蹟的旅程非常重要。當我們擴大空間時，我們真正的優勢之一是我們的創新計劃和我們整個產品線的新產品。這是我們能夠在面部、眼部、唇部、工具和皮膚護理等充滿挑戰的類別中保持增長的原因之一。

In particular, the space gives us an opportunity to get more skin care items into national retailers. If you take a look at our business overall, skin care is about 8% of our tracked channel sales, but almost 25% of our sales on elfcosmetics.com. And if you look at the difference, a big part of that difference is the assortment, our ability to put more of our ranges into national retailers and put focus against that. So we believe skincare has quite a bit of white space just based on the success that we have on elfcosmetics.com.

特別是，這個空間讓我們有機會將更多護膚品引入全國零售商。如果你看一下我們的整體業務，護膚品約占我們跟踪渠道銷售額的 8%，但幾乎佔 elfcosmetics.com 銷售額的 25%。如果你看一下差異，就會發現差異的很大一部分在於品種，我們有能力將更多產品投放到全國零售商中，並重點關注這一點。因此，根據我們在 elfcosmetics.com 上取得的成功，我們相信護膚品有相當多的空白。

And as we get larger footprints, it gives us the opportunity to put a richer mix of skin care in addition to some of other key holy grail innovation. And then on the second question on community. Community is such an important part and has been for our entire 16 years. I mean if you think about e.l.f. Cosmetics, it really was built behind this passionate community that knew about the brand and helped build it up and continues to be buoyed by that. And so community is really core to our DNA and our digital routes. Keys Soulcare is no different from the standpoint of starting digitally, starting with content, conversation and community. And as I mentioned earlier, the response has been incredibly positive to that. And so I'd say it's a really rich community. It will be a different community than the e.l.f. Cosmetics community in many respects. Partly because Keys Soulcare will be in the entry-level prestige area. So if unit retails between $20 and $40 for the initial range, that's quite a bit different than the average $5 average unit retail with e.l.f. and then also with primarily skin focus in the beginning, going into other categories. And so I think you'll continue to see -- and the great news is just like e.l.f. Cosmetics all you have to do is go on the website, keyssoulcare.com, and you can see the rich content and then even on the social channels. I mean, the level of consumer reaction we're getting. And how meaningful this brand is really gives us a great deal of heart in terms of its future potential.

隨著我們的足跡越來越大，除了一些其他關鍵的聖杯創新之外，它還使我們有機會推出更豐富的皮膚護理組合。然後是關於社區的第二個問題。社區是非常重要的一部分，我們 16 年來一直如此。我的意思是如果你想到 e.l.f.化妝品，它確實是在這個充滿熱情的社區背後建立的，他們了解該品牌並幫助建立了該品牌，並繼續受到該品牌的鼓舞。因此，社區確實是我們 DNA 和數字路線的核心。Keys Soulcare 與從數字化、從內容、對話和社區開始的觀點沒有什麼不同。正如我之前提到的，對此的反應非常積極。所以我想說這是一個非常富裕的社區。這將是一個與 e.l.f. 不同的社區。化妝品界在很多方面。部分原因是 Keys Soulcare 將處於入門級聲望領域。因此，如果初始範圍的單位零售價在 20 至 40 美元之間，則與 e.l.f. 的平均單位零售價為 5 美元有很大不同。然後一開始主要關注皮膚，然後進入其他類別。所以我想你會繼續看到——好消息就像 e.l.f.化妝品你只需登陸keysoulcare.com網站，就可以看到豐富的內容，甚至在社交渠道上。我的意思是，我們得到的消費者反應程度。這個品牌的意義之大，確實讓我們對它的未來潛力充滿了信心。

Our next question comes from Bill Chappell with Truist securities.

我們的下一個問題來自 Truist 證券公司的 Bill Chappell。

Well, first, I guess, housekeeping, how much of -- how much was the kind of marketing start-up cost for Keys Soulcare in 2Q?

嗯，首先，我想，內務管理，第二季度 Keys Soulcare 的營銷啟動成本是多少？

So Bill, in our -- there's not really marketing start-up costs. There are certain launch costs related to Keys Soulcare, included in our adjusted SG&A and adjusted EBITDA numbers. You can see that called out in the footnotes in the non-GAAP schedules in our press release.

比爾，在我們的國家，並沒有真正的營銷啟動成本。Keys Soulcare 存在一定的啟動成本，包括在我們調整後的 SG&A 和調整後的 EBITDA 數字中。您可以在我們新聞稿的非公認會計準則時間表的腳註中看到這一點。

Got it. Okay. I will double check. And then second, I guess, Tarang, can you give us an update just kind of the health of color cosmetics in the mass side? I mean you said you're the only 1 of the 5 major players to grow. And I'm trying to understand how much of that is category still recovering in later stages of the pandemic. Have we recovered at all from the later stage of the pandemic? Or is it just more -- your competition isn't kind of rising to the occasion?

知道了。好的。我會仔細檢查。第二，我想，Tarang，您能給我們介紹一下彩妝在大眾方面的健康狀況嗎？我的意思是你說你是 5 個主要參與者中唯一一個成長的人。我試圖了解其中有多少類別在大流行的後期階段仍在恢復中。我們已經從大流行的後期恢復了嗎？或者只是——你的競爭對手沒有隨機應變？

Well, I'd say, first of all, the category has definitely been impacted by the pandemic. Everyone has been restricted and cooped up, hasn't been able to get about their normal routines, and that's certainly impacted the category on the whole. So while not quite at the bottom that it was -- to be start of the pandemic, particularly through different waves of COVID, you definitely see an impact on the category. I think we've been not only fortunate, but we've executed really well in terms of being able to buck that trend across everyone of the categories in which we compete. And I think it's the fundamental value equation we have of the best of beauty made accessible to every eye, lip and face. As well as the execution against the 5 strategic imperatives we've been talking about now for about 2 years. And so I think we've bucked the trend. We feel confident in our ability to continue to build share even in a challenged category. What I will tell you longer-term is I'm quite bullish on the category.

嗯，我想說，首先，這個類別肯定受到了疫情的影響。每個人都受到限制和關起來，無法正常生活，這肯定會影響整個類別。因此，儘管疫情尚未完全觸底，尤其是在不同波次的新冠疫情期間，但你肯定會看到對該類別的影響。我認為我們不僅很幸運，而且在我們參與競爭的每個類別中都能逆勢而上，我們的表現非常好。我認為這是我們為每個眼睛、嘴唇和臉部提供最好的美麗的基本價值方程式。以及我們已經討論了大約兩年的 5 項戰略要務的執行情況。所以我認為我們已經逆勢而上。即使在充滿挑戰的領域，我們也對繼續擴大市場份額的能力充滿信心。我要告訴你的是，從長遠來看，我非常看好這個類別。

I think as consumer behavior returns to normal, this is such a central category to consumer self-expression and importance. I believe the category will come back quite strongly. And a lot of that in terms of the timing will really depend on when people are able to get back to normal behavior. Regardless of whether the category is challenged or does better. I like our position within the category. We had strength going into the pandemic, we've executed well during the pandemic, and we're building a brand portfolio that I think will make us even stronger as the category recovers.

我認為，隨著消費者行為恢復正常，這是消費者自我表達和重要性的核心類別。我相信該類別將會強勢回歸。就時間而言，很大程度上取決於人們何時能夠恢復正常行為。無論該類別是否受到挑戰或表現更好。我喜歡我們在該類別中的地位。我們在應對大流行病方面有實力，我們在大流行病期間執行得很好，而且我們正在建立一個品牌組合，我認為隨著該類別的複蘇，這將使我們變得更加強大。

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。

Just 2 quick ones. If you could talk a little bit about the Keys Soulcare sourcing model -- the sourcing model lineup with the model you use for the rest of your business and whether there'll be any ties between the elfcosmetics.com website and the Keys Soulcare site? And then the second question is, you're now managing 3 brands as you move forward as opposed to, one, historically, are there any changes that you've made or you feel you need to make to people, process, systems, approaches internally to manage the added complexity?

就2個快的。您能否談談 Keys Soulcare 採購模式——您在其他業務中使用的採購模式陣容以及 elfcosmetics.com 網站和 Keys Soulcare 網站之間是否存在任何联系？第二個問題是，隨著你的前進，你現在正在管理3 個品牌，而不是，從歷史上看，你是否已經做出了任何改變，或者你覺得需要對人員、流程、系統、方法做出任何改變在內部管理增加的複雜性？

Sure. Jon, so I'd say, first of all, on Keys Soulcare. It's one of the real basis of our strategic extensions is being able to leverage the chassis we've built with e.l.f. Beauty particularly the investments we have in our team and infrastructure. So the sourcing model in Keys Soulcare as it fully leverages the innovation model we have on e.l.f. as well as our overall operating platform. It gives us that great combination of cost, quality and speed going forward as well as the ability to get into other categories. We supplemented that really through by the acquisition that we had on W3LL PEOPLE.

當然。喬恩，所以我首先要說的是 Keys Soulcare。我們戰略擴展的真正基礎之一是能夠利用我們用 e.l.f. 構建的底盤。美，尤其是我們對團隊和基礎設施的投資。因此，Keys Soulcare 的採購模式充分利用了我們在 e.l.f. 上的創新模式。以及我們的整體運營平台。它為我們提供了成本、質量和速度的完美結合，以及進入其他類別的能力。我們通過收購 W3LL PEOPLE 來真正補充了這一點。

One of the key developers of the product range is Dr. Renee Snyder, one of the core co-founders, so on W3LL PEOPLE a board-certified dermatologists, one of the co-founders of W3LL PEOPLE. She's been part of our innovation team, working very closely with Alicia Keys to really develop a phenomenal product range. And so it's really leveraging both those investments and capabilities we have, and you'll continue to see that. In terms of ties between the brands, I'd say the ties really are on the back end, in our overall infrastructure and chassis we have. So our ability to stand up the site much faster really came from our strength in digital, a lot of what we're doing from a content standpoint. But from a consumer-facing standpoint, all 3 are distinct brands with distinct consumer segments and complementary to each other. So you won't necessarily see a strong tie between the brands as much as our ability to leverage the company. And then in terms of managing 3 brands versus 1, I'd say a couple of things. First and foremost, most of us come with multi-brand experience, very -- the company is full of very strong backgrounds in both consumer and beauty that have managed portfolios of brands. And so we definitely have that expertise within the company. But we have also brought on incremental resources. So if I think of the additional personnel that we brought on in anticipation of Keys Soulcare. I feel really good about the balance of leveraging the core chassis and then having some dedicated resource. And some of those dedicated resources by each of the brands is how we're able to manage the consumer-facing aspects, while at the same time, leveraging all the investments we've made in the company.

該產品系列的主要開發者之一是Renee Snyder博士，她是W3LL PEOPLE的核心聯合創始人之一，也是W3LL PEOPLE的董事會認證皮膚科醫生，也是W3LL PEOPLE的聯合創始人之一。她是我們創新團隊的一員，與 Alicia Keys 密切合作，真正開發出了非凡的產品系列。因此，它確實利用了我們擁有的這些投資和能力，您將繼續看到這一點。就品牌之間的聯繫而言，我想說，聯繫實際上是在後端，在我們的整體基礎設施和底盤中。因此，我們能夠更快地建立網站的能力實際上來自於我們在數字方面的實力，從內容的角度來看，我們正在做很多事情。但從面向消費者的角度來看，這三個品牌都是不同的品牌，擁有不同的消費群體，並且相互補充。因此，你不一定會看到品牌之間的緊密聯繫，但我們有能力利用公司。然後，就管理 3 個品牌與 1 個品牌的情況而言，我想說幾件事。首先也是最重要的是，我們大多數人都擁有多品牌經驗，該公司在消費者和美容領域擁有非常強大的背景，管理著品牌組合。因此，我們公司內部肯定擁有這種專業知識。但我們也帶來了增量資源。因此，如果我想到我們為 Keys Soulcare 的預期而增加的人員。我對利用核心框架和擁有一些專用資源之間的平衡感覺非常好。每個品牌的一些專用資源是我們如何能夠管理面向消費者的方面，同時利用我們在公司所做的所有投資。

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。

I just had a related question just related to longer-term guidance. So first on COVID, as we think about, I guess, FY 2022 to '24, is the assumption that we'll now be past the COVID headwinds? And then second, in regards to the sales guidance, I was just curious if there's any granularity you can provide in terms of how you guys are thinking about the growth for the e.l.f. brand versus some of the newer brands you have?

我剛剛有一個與長期指導相關的相關問題。首先，關於新冠肺炎，我想，從 2022 財年到 24 財年，我們是否會假設我們現在將克服新冠肺炎的逆風？其次，關於銷售指導，我只是好奇你們是否可以提供任何詳細信息，說明你們如何考慮 e.l.f. 的增長。品牌與您擁有的一些較新品牌的比較？

So Rupesh, I'll start with the long-term economic model and any impacts from COVID. I would say that we're just really focused on driving growth through that long-term economic model. And I think that our track record over the last 7 quarters of delivering strong sales growth. Gives us confidence that we can continue to do that and deliver on our long-term economic model.

Rupesh，我將從長期經濟模型以及新冠疫情的影響開始。我想說的是，我們只是真正專注於通過長期經濟模式推動增長。我認為我們過去 7 個季度的業績記錄實現了強勁的銷售增長。讓我們有信心繼續這樣做並實現我們的長期經濟模式。

In terms of sales guidance on e.l.f. versus the other brands, I would say that we -- I just talked about some of the things and the drivers that will impact our second half net sales, which included a modest contribution from the Keys Soulcare brand. But beyond that, we have not broken that down just yet, really keeping the focus on e.l.f. Beauty as a total.

在 e.l.f. 的銷售指導方面與其他品牌相比，我想說的是，我剛剛談到了一些將影響我們下半年淨銷售額的因素和驅動因素，其中包括 Keys Soulcare 品牌的適度貢獻。但除此之外，我們還沒有將其分解，真正將重點放在 e.l.f 上。美作為一個整體。

Great. If I can just get 1 more in. Okay. If I could speak just 1 more question. Just given all the second wave risks we're seeing in the U.S. right now, are you guys seeing -- I guess, as you look at your drivers are you starting to see an impact on your business related to the second wave spikes in different markets?

偉大的。如果我能再多加1個就好了。好的。如果我還能再問 1 個問題就好了。考慮到我們現在在美國看到的所有第二波風險，你們是否看到了——我猜，當你們觀察你們的驅動因素時，你們是否開始看到與不同領域的第二波高峰相關的對你們業務的影響？市場？

Well, we track that pretty closely, and we certainly can see a correlation depending on restrictions in different areas in terms of both traffic to retail stores and consumer behavior. To feel that we feel more confident about is our ability to execute even in the face of that. We did that through the first wave of COVID, really the second wave, we may be on a third right now, depending on where you're at. And our ability to continue to drive growth in a down category. And given the drivers that we have coming, both in terms of space gains, the space we already gained, space we're about to gain as well as a new brand launch. We feel good about where we stand relative to the category.

嗯，我們非常密切地跟踪這一點，我們當然可以看到取決於不同地區零售商店客流量和消費者行為限制的相關性。即使面對這種情況，我們感到更有信心的是我們的執行能力。我們在第一波新冠疫情中做到了這一點，實際上是第二波，我們現在可能處於第三波，這取決於你所處的位置。我們有能力繼續推動羽絨服類別的增長。考慮到我們即將獲得的驅動因素，無論是空間增益、我們已經獲得的空間、我們即將獲得的空間還是新品牌的推出。我們對自己在該類別中的地位感到滿意。

Our next question is a follow-up from Oliver Chen with Cowen.

我們的下一個問題是奧利弗·陳（Oliver Chen）和考恩（Cowen）的跟進。

You've made a really amazing success with TikTok. Just would love your thoughts on return on ad spend in relation to how you're analyzing the metrics there and the impressions and what that may imply for your thoughts around marketing spend, whether that be dollar or rate in relation to the success you had on TikTok? And would also just love your take on live streaming and how that's manifesting in different aspects of your business and what you see ahead?

你們在 TikTok 上取得了非常驚人的成功。只是希望您對廣告支出回報的想法與您如何分析那裡的指標和印像有關，以及這可能對您對營銷支出的想法意味著什麼，無論是與您所取得的成功相關的美元還是費率抖音？您是否也喜歡您對直播的看法，以及這在您業務的不同方面如何體現以及您對未來的看法？

Sure. So Oliver, I'd say, we have had tremendous success on TikTok, but we've also had success across platforms. And TikTok specifically, I think we're now between our various brand challenges up to 10 billion views, 6.5 million user-generated videos, and it's really helping drive relevancy on the brand, particularly amongst Gen Z. In terms of marketing spend and how we evaluate it, we really evaluate in 2 different ways. One is overall ROI, where we talked last quarter, getting the Nielsen marketing mix analysis done, which showed very strong returns and our spending in total. And then across various vehicles. And then the second is really kind of by what's really causing buzz and having e.l.f. stay top of mind, particularly amongst key demographics like we just talked about, TikTok and Gen Z. So we really look at both those together. And then live streaming I would say we'll continue to have an important impact on the business going forward as other initiatives have for the consumer, so including our kind of virtual try on feature on elfcosmetics.com as well as different ways of kind of engaging consumers. And I think you'll continue to see us do more there.

當然。所以奧利弗，我想說，我們在 TikTok 上取得了巨大的成功，但我們在跨平台上也取得了成功。特別是 TikTok，我認為我們現在面臨著高達 100 億次瀏覽量、650 萬個用戶生成視頻的各種品牌挑戰，它確實有助於提高品牌的相關性，特別是在 Z 世代中。我們評估它，我們實際上以兩種不同的方式評估。一是整體投資回報率，我們在上個季度進行了尼爾森營銷組合分析，該分析顯示了非常強勁的回報和我們的總支出。然後穿過各種車輛。第二個是真正引起轟動和擁有 e.l.f. 的東西。保持首要考慮，特別是在我們剛才談到的關鍵人群中，TikTok 和 Z 世代。因此，我們確實將這兩者放在一起考慮。然後是直播，我想說，我們將繼續對未來的業務產生重要影響，就像其他舉措對消費者的影響一樣，因此包括我們在 elfcosmetics.com 上的虛擬試穿功能以及不同的方式吸引消費者。我想您會繼續看到我們在那裡做更多的事情。

Our next question comes from Mark Astrachan with Stifel.

我們的下一個問題來自 Stifel 的 Mark Astrachan。

This is actually Peter on for Mark. Can you provide more color on where you see promotional activity in the category wide? And also if we're seeing any sort of return to normal there?

這實際上是彼得對馬克的回應。您能否提供更多關於您在整個類別中看到的促銷活動的信息？另外，我們是否看到那裡有任何恢復正常的情況？

So I'd say on the promotional activity, we haven't seen any major spike at least on the mass side on the promotional side, because the number of brands have been highly promotional in the category, and we continue to see them be highly promotional. I'd say as far as e.l.f. is concerned, that's never really been our strategy. Our strategy has been to provide the best of beauty at extraordinary values every day. And we like that strategy because it allows us to kind of stay true to not only who we are and what our consumers expect, but also gives us a certain level of stability in not having to play in all the nonsense of high, low. So overall, I'd say we haven't seen that much of a change in the category, even though some players have been highly promotional. And then two, our strategy remains intact as it's winning in the marketplace.

因此，我想說，在促銷活動方面，至少在促銷方面，我們還沒有看到任何重大的激增，因為品牌數量在該類別中得到了高度促銷，而且我們繼續看到它們的促銷力度很高。促銷。我想說就 e.l.f 而言。令人擔憂的是，這從來都不是我們真正的戰略。我們的策略是每天以非凡的價值提供最好的美麗。我們喜歡這種策略，因為它不僅使我們能夠忠於我們自己和消費者的期望，而且還使我們具有一定程度的穩定性，不必參與所有高低低的胡言亂語。總的來說，我想說的是，儘管一些玩家進行了大力宣傳，但我們還沒有看到該類別發生太大變化。第二，我們的戰略保持不變，因為它在市場上獲勝。

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

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

Great. Well, thank you, everyone, for joining us today. I'm so grateful for our incredible team at e.l.f. Beauty. Who have shown tremendous talent, meeting the challenges of the pandemic and building market share. I believe our future is bright and remain confident in our long-term strategy. We hope everyone is happy and healthy this holiday season. Thank you, and be well. Thanks, everyone.

偉大的。好的，謝謝大家今天加入我們。我非常感謝 e.l.f. 出色的團隊。美麗。他們表現出了巨大的才華，應對了疫情的挑戰並建立了市場份額。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。我們希望每個人在這個假期都快樂健康。謝謝你，祝你一切順利。感謝大家。

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。