Ethan Allen Interiors Inc (ETD) 2025 Q4 法說會逐字稿

Good afternoon and welcome to the Ethan Allen fiscal 2025 fourth quarter analyst conference call. (Operator Instructions) Please note this conference is being recorded.

下午好，歡迎參加 Ethan Allen 2025 財年第四季分析師電話會議。（操作員指示）請注意，本次會議正在錄音。

It is now my pleasure to introduce your host, Matt McNulty, Senior Vice President, Chief Financial Officer, and Treasurer. Thank you. You may begin.

現在我很高興介紹您的主持人，高級副總裁、財務長兼財務主管 Matt McNulty。謝謝。你可以開始了。

Thank you, operator. Good afternoon and thank you for joining us today to discuss Ethan Allen's fiscal 2025 full-year and fourth-quarter results. With me today is Farooq Kathwari, our Chairman, President and CEO. Mr. Kathwari will open and close our prepared remarks, while I will speak to our financial performance midway through. After our prepared remarks, we will then open the call up for your questions.

謝謝您，接線生。下午好，感謝您今天加入我們討論 Ethan Allen 2025 財年全年和第四季度業績。今天和我一起的是我們的董事長、總裁兼執行長 Farooq Kathwari。卡特瓦里先生將開始和結束我們的準備好的發言，而我將在中途談論我們的財務表現。在我們準備好發言之後，我們將開始回答大家的提問。

Before we begin, I'd like to remind the audience that this call is being webcast live under the news and events tab on our investor relations website. A replay and transcript of today's call will also be made available on our investor relations website. There you'll find a copy of today's press release, which contains reconciliations of non-GAAP financial measures referred to on this call and in the press release.

在我們開始之前，我想提醒觀眾，本次電話會議正在我們投資者關係網站的新聞和事件標籤下進行網路直播。今天電話會議的重播和記錄也將在我們的投資者關係網站上提供。您可以在那裡找到今天的新聞稿的副本，其中包含本次電話會議和新聞稿中提到的非公認會計準則財務指標的對帳。

Our comments today may include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. The most significant risk factors that could affect our future results are described in our most recent annual report on Form 10-K. Please refer to our SEC filing for a complete review of those risks. The company assumes no obligation to update or revise any forward-looking matters discussed during this call.

我們今天的評論可能包括前瞻性陳述，這些陳述受風險和不確定性的影響，可能導致實際結果大不相同。我們最新的 10-K 表年度報告中描述了可能影響我們未來績效的最重要風險因素。請參閱我們的 SEC 文件以全面了解這些風險。本公司不承擔更新或修改本次電話會議中討論的任何前瞻性事項的義務。

With that, I am pleased to now turn the call over to Mr. Kathwari.

現在我很高興將電話轉給卡特瓦里先生。

Thank you, Matt. We are gratified at the hard work of our team and our unique vertically integrated structure, which continues to enable us to have strong results and position us for growth.

謝謝你，馬特。我們對團隊的辛勤工作和獨特的垂直整合結構感到滿意，這使我們能夠繼續取得強勁的業績並為我們的成長做好準備。

After Matt provides a brief overview of our fourth-quarter and fiscal 2025 financial results, I will discuss our initiatives to continue to position us for growth and strong financials. Matt.

在 Matt 簡要概述我們的第四季度和 2025 財年財務業績之後，我將討論我們的舉措，以繼續為我們的成長和強勁的財務狀況做好準備。馬特。

Thank you, Mr. Kathwari. Our financial performance during fiscal 2025 was highlighted by strong margins, positive operating cash flow and a robust balance sheet. Despite operating in a challenging environment, our operations produced positive financial results, which I will now discuss.

謝謝你，卡特瓦里先生。我們 2025 財年的財務表現突顯為強勁的利潤率、正的經營現金流和穩健的資產負債表。儘管在充滿挑戰的環境中運營，我們的營運仍然取得了積極的財務業績，我現在將對此進行討論。

Our fiscal 2025 consolidated net sales for $614.6 million, which included fourth quarter sales of $160.4 million. Our sales reflect higher average ticket prices and fewer returns offset by lower delivered unit volume, reduced backlog, less traffic, and fewer contract sales.

我們的 2025 財年綜合淨銷售額為 6.146 億美元，其中包括第四季的 1.604 億美元銷售額。我們的銷售反映了更高的平均票價和更少的退貨，但交付單位數量減少、積壓減少、客流量減少以及合約銷售減少抵消了這種影響。

As noted in our earnings release, the home furnishings industry has been challenged. However, overall demand patterns began to show signs of improvement during the just completed fourth quarter as retail written orders rose by 1.6%, driven by the strength of new product introductions, promotional levels, elevated clearance, and the pause of additional tariffs.

正如我們的收益報告所指出的，家居裝飾行業面臨挑戰。然而，在剛剛過去的第四季度，整體需求模式開始出現改善跡象，零售書面訂單增加了 1.6%，這得益於新產品的推出、促銷水平的提高、清倉促銷的增加以及額外關稅的暫停。

Wholesale orders decreased by 6.8% during the quarter, as the segment was impacted by our contract business. We ended the fiscal year with wholesale backlog of $48.9 million, reflecting historical norms. A lower volume of contract orders combined with improved customer lead times helped to reduce our backlog.

由於該部門受到合約業務的影響，本季批發訂單下降了 6.8%。本財政年度結束時，我們的批發積壓訂單為 4,890 萬美元，符合歷史正常水準。合約訂單量減少，加上客戶交貨時間縮短，有助於減少我們的積壓訂單。

For the full year, our consolidated gross margin was 60.5%, comparable to 60.8% last year. In the just completed fourth quarter our consolidated gross margin was 59.9%, which was impacted by fewer delivered orders, higher clearance sales, increased promotional activity, and lower manufacturing production, partially offset by a change in sales mix, lower raw material input costs, reduced headcount, and a higher average ticket price.

全年綜合毛利率為60.5%，與去年同期的60.8%持平。在剛結束的第四季度，我們的綜合毛利率為 59.9%，這受到交付訂單減少、清倉銷售增加、促銷活動增加和製造產量下降的影響，但部分被銷售組合變化、原材料投入成本降低、員工人數減少和平均票價上漲所抵消。

Our head count totaled 3,211 at fiscal year-end, a decrease of 5.7% from a year ago, as we continue to identify operational efficiencies and streamline workflows.

截至財政年度末，我們的員工總數為 3,211 人，比去年同期減少了 5.7%，因為我們繼續提高營運效率並簡化工作流程。

For the full year, our adjusted operating margin was 10.2%, while the fourth quarter operating margin was 9.7%. These strong operating margins reflect our ability to tightly manage expenses while increasing advertising. Compared to our pre-pandemic 2019 fourth quarter, adjusted operating margin has improved 110 basis points. On a full-year basis, adjusted EPS was $2.04. Our fourth quarter adjusted EPS was $0.49. Our effective tax rate was 25.2% for the full year and 26.4% for the quarter, which varies from the 21% federal statutory rate due to state taxes and recording of a valuation allowance on retail deferred tax assets.

全年調整後的營業利益率為 10.2%，第四季營業利益率為 9.7%。這些強勁的營業利潤率反映了我們在增加廣告的同時嚴格管理費用的能力。與疫情前的 2019 年第四季相比，調整後的營業利潤率提高了 110 個基點。全年調整後每股收益為2.04美元。第四季調整後每股收益為0.49美元。全年有效稅率為25.2%，本季有效稅率為26.4%，由於州稅以及對零售遞延稅項資產計提的估值準備金，與21%的聯邦法定稅率有所不同。

Now, turning to our liquidity. We ended the year with a robust balance sheet, including cash and investments of $196.2 million and no outstanding debt. We generated $24.8 million in operating cash flow during the quarter, which brought our full year total to $61.7 million. We also reduced our inventory levels as clearance sales helped to offset new product introductions.

現在，談談我們的流動性。我們以強勁的資產負債表結束了這一財年，其中包括 1.962 億美元的現金和投資，並且沒有未償債務。本季我們產生了 2,480 萬美元的營運現金流，使我們的全年總額達到 6,170 萬美元。由於清倉銷售有助於抵銷新產品推出的影響，我們也降低了庫存水準。

Capital expenditures were $11.3 million, including $1.9 million during the just completed fourth quarter, as we invested capital into manufacturing, retail, and technology. We are confident in the investments we are making for the future, but recognize the need to remain cognizant of the uncertain economic environment. We continued our practice of paying quarterly cash dividends. In May, our Board declared a regular quarterly cash dividend of $0.39 per share, which was subsequently paid and brought our total annual dividends paid to $50.1 million.

資本支出為 1,130 萬美元，其中包括剛結束的第四季的 190 萬美元，因為我們將資本投入製造、零售和技術方面。我們對未來的投資充滿信心，但也意識到需要繼續關注不確定的經濟環境。我們繼續實行每季派發現金股利的做法。5 月份，董事會宣布派發每股 0.39 美元的定期季度現金股息，隨後已支付，使我們的年度股息總額達到 5,010 萬美元。

Also, as announced earlier today, our Board declared a special cash dividend of $0.25 per share, in addition to a regular quarterly cash dividend of $0.39 per share, both of which will be paid in August. This recent action marked the fifth consecutive year we have paid a special cash dividend.

此外，正如今天早些時候宣布的那樣，我們的董事會宣布派發每股 0.25 美元的特別現金股息，以及每股 0.39 美元的常規季度現金股息，兩項股息都將於 8 月支付。此次行動標誌著我們連續第五年支付特別現金股利。

In summary, our vertically integrated business delivered positive fiscal 2025 results. We are confident in the strength of our business model, as Ethan Allen has successfully navigated challenging times to serve our clients and deliver value to our shareholders throughout its 93-year history.

總而言之，我們的垂直整合業務在 2025 財年取得了正面的表現。我們對我們的商業模式的優勢充滿信心，因為 Ethan Allen 在 93 年的發展歷程中成功度過了充滿挑戰的時期，為我們的客戶提供服務並為我們的股東創造價值。

Looking ahead, we remain focused on executing our strategic initiatives in the face of ongoing macro uncertainty. Our robust balance sheet and financial stability provide a solid foundation and positions us well as we head into fiscal 2026.

展望未來，面對持續的宏觀不確定性，我們仍將專注於執行我們的策略性舉措。我們穩健的資產負債表和財務穩定性為我們邁向 2026 財年奠定了堅實的基礎，並為我們做好了準備。

With that, I will now turn the call back over to Mr. Kathwari.

現在，我將把電話轉回給卡特瓦里先生。

Well, thank you, Matt. As we have conveyed, the focus of our enterprise continues to strengthen the five key areas of talent, marketing, service, technology, and social responsibility.

好吧，謝謝你，馬特。正如我們所傳達的，我們企業的重點持續加強人才、行銷、服務、技術和社會責任五大關鍵領域。

We are gratified to have strong talent in our vertically integrated enterprise. We continue to make about 75% of our furniture in our North American workshops located in Vermont, North Carolina, Central Mexico, and Honduras. Keep in mind, about 20 years back, we had 18 manufacturing locations. Also, our unique logistics operations deliver, what we call, white-glove delivery at one cost to our clients in North America. This is unique.

我們很高興我們的垂直整合企業擁有強大的人才。我們繼續在位於佛蒙特州、北卡羅來納州、墨西哥中部和宏都拉斯的北美工廠生產約 75% 的家具。請記住，大約 20 年前，我們有 18 個生產基地。此外，我們獨特的物流運作方式也以統一價格為北美客戶提供所謂的白手套外送服務。這是獨一無二的。

In national logistics, we have replaced 10 national locations to two locations. And in retail, replaced about 100 warehouses to about 20. in our retail network, 25% of our about 160 retail leaders have been either relocated, I mean retail locations, have either been relocated or made smaller due to the impact of technology, customization, and especially, a strong interior design professional network.

在全國物流方面，我們已將全國10個地點替換為2個地點。在零售方面，我們將大約 100 個倉庫替換為大約 20 個。在我們的零售網路中，大約 160 名零售領導者中的 25％ 已經搬遷，我的意思是零售地點要么已經搬遷，要么變得更小，這是由於技術、定制化，特別是強大的室內設計專業網絡的影響。

Technology continues to play a central role in all our operations, from manufacturing, logistics, and especially marketing. For example, about 15 years back, we spent major dollars in national television. And today has been replaced mostly by digital and print magazines, including forwarding about 10 million 36-page digital magazines every two weeks. We have also continued to strengthen our product programs and introducing new products on a planned basis.

科技在我們所有的營運中繼續發揮核心作用，包括製造、物流，尤其是行銷。例如，大約 15 年前，我們在國家電視台上投入了大量資金。而如今已基本被數位和印刷雜誌所取代，包括每兩週轉發約1000萬本36頁的數位雜誌。我們也繼續加強我們的產品計劃並有計劃地推出新產品。

And financially, we have maintained strong results. As Matt mentioned, we have maintained margins, gross margins of 59.9% for the quarter and 60.5% for the year. Our operating margins are 9.7% for the quarter and 10.2% [for the year] ( added by the company after the call). This is despite lots of turmoil in the industry and in the economy.

從財務上來說，我們保持了強勁的業績。正如馬特所提到的，我們維持了利潤率，本季毛利率為 59.9%，全年毛利率為 60.5%。我們的季度營業利潤率為 9.7%，全年營業利潤率為 10.2%（公司在電話會議後補充）。儘管產業和經濟都面臨許多動盪，但情況仍然如此。

We've also been able to maintain strong cash. We ended with cash of $196 million and no debt. And as Matt said, we continue to also give out very strong cash dividends.

我們也能夠保持充足的現金。我們最終擁有 1.96 億美元現金並且沒有債務。正如馬特所說，我們也繼續發放豐厚的現金股利。

With this, I'm very happy to open up for any questions or comments.

有了這個，我非常樂意回答任何問題或評論。

(Operator Instructions) Brad Thomas, KeyBanc Capital Markets Inc.

（操作員指示）Brad Thomas，KeyBanc Capital Markets Inc.

Yeah. Hello Farooq.

是的。你好，法魯克。

Good afternoon to you.

午安.

Good afternoon, Matt.

下午好，馬特。

Good, Brad. And how are you? How are you doing?

很好，布拉德。你好嗎？你好嗎？

Good. I'm doing well, thanks. I'm doing well. My first question was just going to be around industry trends and what you were seeing. And I was wondering if you could give us some more color about what you saw through the quarter. It did seem like you had a nice acceleration in your orders from what you had seen in one Q to what you'd in the Q. I was just wondering, if you could talk a little bit more about what you're seeing out there and what you're hearing from your customers?

好的。我很好，謝謝。我很好。我的第一個問題是關於行業趨勢以及您所看到的情況。我想知道您是否可以向我們詳細介紹本季的情況。看起來您的訂單量確實從一個季度的成長到了下一個季度的成長。我只是想知道，您是否可以再多談談您看到的情況以及您從客戶那裡聽到的情況？

Yeah, I know. As I had mentioned, these are challenging times, all so much uncertainties with what's happening with the economy, international conflicts, tariffs, and everything else, but I think that having said all of those things that Matt had also mentioned we were very pleased that our written orders for the quarter were up 1.6%, despite all these challenges. So I think our people did a good job increasing our written orders in our retail division in a very tough environment.

是的，我知道。正如我所提到的，這是一個充滿挑戰的時期，經濟、國際衝突、關稅以及其他所有方面都存在很多不確定性，但我認為，儘管面臨所有這些挑戰，但正如馬特所提到的，我們很高興看到本季度的書面訂單增長了 1.6%。因此我認為我們的員工在非常艱難的環境下很好地增加了零售部門的書面訂單。

That's great. Now, I was wondering if you could help us think about how tariffs have been affecting your business. I know that you are somewhat insulated as a US manufacturer, but if you could talk about how, if at all, that's affecting your business directly? And how you think it maybe is affecting the competitive landscape in terms of price increases that you may maybe have seen from the competition?

那太棒了。現在，我想知道您是否可以幫助我們思考關稅對您的業務有何影響。我知道作為一家美國製造商，你們在某種程度上不受任何影響，但你能否談談這對你們的業務有何直接影響？您認為這可能會對競爭格局產生什麼影響？就價格上漲而言，您可能已經看到了競爭的趨勢。

Yeah. This has been a really, really interesting environment to operate. Fortunately, Brad, close to 70% of our furniture or more is made in our North American operations, in Vermont, in Carolinas, in Mexico, Honduras. Obviously, there are no tariffs in the United States. And also because of the North America Trade Treaty, we are not impacted with tariffs in Mexico.

是的。這是一個非常非常有趣的營運環境。幸運的是，布拉德，我們近 70% 或更多的家具都是在北美工廠生產的，包括佛蒙特州、卡羅來納州、墨西哥和宏都拉斯。顯然，美國沒有關稅。而且由於北美貿易條約，我們不會受到墨西哥關稅的影響。

There are smaller tariffs in Honduras. So then, about 30% of the products in furniture is coming from overseas, in places like Indonesia, mostly in terms of furniture; some from Vietnam; and I think between the two countries, that's most likely some impact there. Our accessory products do come from all over the world, and there of course we have been impacted.

洪都拉斯的關稅較低。因此，大約 30% 的家具產品來自海外，例如印尼等地，大部分是家具；有些來自越南；我認為在這兩個國家之間，這很可能會產生一些影響。我們的配件產品確實來自世界各地，當然也受到了影響。

But overall, because of the nature of our operations, our impact of this whole issue of tariffs has been very limited on us.

但總體而言，由於我們業務的性質，整個關稅問題對我們的影響非常有限。

That's great. And then, you all have done a lot to control costs in this difficult environment, Farooq, I was wondering if you could help us think about the operating costs of the business? And are there incremental areas where you think there's particular efficiencies and costs to go after? Or do you feel like this is a good level to hold at, as we cross our fingers that we get a recovery on the horizon here?

那太棒了。然後，你們都在這個困難的環境中做了很多來控製成本，法魯克，我想知道你們是否可以幫助我們考慮業務的營運成本？您認為是否存在一些需要特別提高效率、降低成本的增量領域？或者您覺得這是一個值得保持的良好水平，因為我們祈禱經濟即將復甦？

No. I think that is a very, very important issue is a question about, as I mentioned in that technology. And of course, our vertical integration has been very, very important in managing our costs. Think of the first thing is, we have, as I said, from 2019, we have reduced about 35% of our headcount.

不。我認為這是一個非常非常重要的問題，正如我在那項技術中提到的那樣。當然，我們的垂直整合對於管理成本非常非常重要。首先，正如我所說，從 2019 年開始，我們的員工人數減少了約 35％。

We reduced our headcount in the last fiscal year by about 5% or 6%. And this is all due to the fact retaining very strong talent and technology making it happen. So from that point of view, we have today -- think of this. It's almost impossible to think that we have close to 30% to 35% less headcount today than we had in 2019. And lot of this is due to the technology.

我們在上個財政年度裁減了約 5% 或 6% 的員工人數。這一切都歸功於我們擁有非常強大的人才和技術。所以從這個角度來看，我們今天——想想這個。幾乎很難想像，我們今天的員工人數比 2019 年減少了近 30% 到 35%。這在很大程度上歸功於技術。

Now, this also has an implication in our marketing. Think of this. Brad, we used to spend close to $30 million in distributing our magazines, print magazines. Today, all of it is done digitally, and we do most of our advertising again through digital media, no print mediums.

現在，這也對我們的行銷有影響。想想這個。布拉德，我們過去花費近 3000 萬美元來發行我們的雜誌和印刷雜誌。如今，所有廣告都以數位化方式進行，我們的廣告宣傳也大多是透過數位媒體而非印刷媒體進行的。

It's amazing what has been done in terms of our expenditures, while we've been able to maintain our margins, especially because of our unique structure of manufacturing in North America, and then strong partners overseas as well. We have been able to continue to reduce our operating expenses. And that has helped us maintain stronger gross margins and operating margins, and especially good cash flow.

我們在支出方面取得的成就令人驚嘆，同時我們能夠保持利潤率，特別是因為我們在北美擁有獨特的製造結構，並且在海外也有強大的合作夥伴。我們已經能夠繼續降低營運費用。這幫助我們維持了更高的毛利率和營業利潤率，尤其是良好的現金流。

That's very helpful. Thanks so much, Farooq. I appreciate it. Thanks very much.

這非常有幫助。非常感謝，法魯克。我很感激。非常感謝。

Cristina Fernandez, Telsey Advisory Group.

克里斯蒂娜‧費爾南德斯 (Cristina Fernandez)，特爾西顧問集團 (Telsey Advisory Group)。

Hello, Cristina. How are you?

你好，克里斯蒂娜。你好嗎？

Good. Good afternoon. Hi, Matt. I had a follow-up question on the trends, and also related to gross margin. On the prepared remarks, you talked about some clearance activity and promotions in the quarter. Can you expand on how you're using promotions to drive sales? Were they incremental year over year? And what's your approach for the remainder of the year?

好的。午安.你好，馬特。我有一個關於趨勢的後續問題，也與毛利率有關。在準備好的發言中，您談到了本季的一些清倉活動和促銷活動。您能否詳細說明如何利用促銷來推動銷售？它們是否逐年遞增？您今年剩餘時間的計劃是什麼？

Yes. As I said, fortunately, we did not have much excess inventory to settle. With that and because of that, we've been able to maintain. Think of this. Our gross margins [are around] (corrected by the company after the call) 60%, and there was 60.8% in the previous year. So we were able to maintain strong gross margins. So our clearance and everything has been relatively small. Because of the fact, close 80%of our products are custom.

是的。正如我所說，幸運的是，我們沒有太多多餘的庫存需要處理。正因為如此，我們才得以維持。想想這個。我們的毛利率（電話會議後公司進行了更正）為 60%，去年同期為 60.8%。因此我們能夠維持強勁的毛利率。因此我們的清理工作和其他所有事情都相對較小。因為事實上，我們的產品有近 80% 都是客製化的。

Keep in mind, only 15 years back, 80% of our products was sold from stock. The customization is tremendously important. That also has the implication of our national distribution.

請記住，僅在 15 年前，我們 80% 的產品都是透過庫存銷售的。定制非常重要。這也對我們的國家分佈有影響。

When I mentioned we had many, many 8 or 10 major national distribution centers, as against one major one now, it is because going from about 70%, 80% stock inventories to 80% custom has also resulted in the reduction of, not only inventory, but all the space that we required to stock it and to ship it.

當我提到我們有許多 8 個或 10 個主要的國家配送中心（而不是現在的一個主要配送中心）時，這是因為從大約 70%、80% 的庫存轉變為 80% 的定制也不僅減少了庫存，還減少了我們儲存和運輸所需的所有空間。

And then my second question is regarding price increases. You took some earlier in the year. Are you seeing any impact on unit sales? And with the tariffs increasing for some countries like Vietnam, do you plan to have -- to make more price increases over the next 6 to 12 months?

我的第二個問題是關於價格上漲。您在今年早些時候就採取了一些行動。您覺得單位銷售量受到了什麼影響嗎？隨著越南等一些國家的關稅上調，您是否計劃在未來 6 到 12 個月內進一步提高價格？

Yeah, we are watching it carefully. We have been able to maintain pricing very small increase, not much. Again, because of the fact that close to 80% is made right here in North America. That was not the case. Where some of our products are made in the countries like Indonesia. Now, we are watching the issue of tariffs as you know, yesterday the tariffs. And so we'll watch that to see the impact of it.

是的，我們正在仔細觀察。我們已經能夠維持價格很小的上漲，漲幅不大。再一次，因為其中近 80% 是在北美製造的。事實並非如此。我們的一些產品是在印尼等國家生產的。現在，我們正在關注關稅問題，正如你所知，昨天的關稅。因此我們將觀察其影響。

Our partners have also helped. When these kind of things happen, they also contribute to a reduction of the costs, or the impact of the tariffs is less. But overall, now, I can consider the fact that even though our volume was down, we were able to maintain strong margins, again, because of the efficiency of our operations.

我們的合作夥伴也提供了協助。當這些事情發生時，它們也有助於降低成本，或減少關稅的影響。但總的來說，現在我可以考慮這樣一個事實：儘管我們的銷量下降了，但我們仍然能夠保持強勁的利潤率，這也歸功於我們營運的效率。

And my last question, following up on Brad's question about trends through the quarter, when you look at the increase in retail orders, the 1.6%, what do you attribute that with that better customer traffic as the quarter progresses, the new introductions, more details there will be helpful. Thanks.

我的最後一個問題是，接著布拉德關於本季趨勢的問題，當您看到零售訂單增加了 1.6% 時，您認為這和本季客戶流量增加以及新產品的推出有什麼關係，更多細節將會很有幫助。謝謝。

Yeah. It was a combination of factors. One was the fact that as the quarter progressed, we saw more consumer positive attitudes. I think that helped. I think we have very, very strong network of associates. They also maintain a very strong relationship with our clients. That also helped. And I think that we've gone through, as you know, it's been somewhat of a challenging environment for our industry and for most companies.

是的。這是多種因素共同作用的結果。一是隨著本季的進展，我們看到消費者的態度更加積極。我認為那有幫助。我認為我們擁有非常非常強大的合作夥伴網路。他們也與我們的客戶保持著非常牢固的關係。這也有幫助。而且我認為，正如你所知，我們已經經歷了對我們的行業和大多數公司來說都充滿挑戰的環境。

The reason we have been able to do well is because of our structure, our vertical integration, and the fact, which has been tremendously important, is combining great personal service and technology. In fact, we slightly increased our marketing expenses. Matt, we went from what, to 3.2% or what is it?

我們之所以能夠取得好成績，是因為我們的結構、我們的垂直整合，以及將優質的個人服務與科技結合這極為重要的事實。事實上，我們略微增加了行銷費用。馬特，我們從什麼地方降到了 3.2% 或多少？

3.4%.

3.4%。

3.4% from?

3.4%來自？

From a year ago, 2.8%.

較一年前相比，成長了 2.8%。

We went from 2.8%. And we still are relatively small and a lot of it is we did it to increase our communications, and especially our digital mediums. So it's not a big, huge amount. Look here, we used to spend 5%, 6%, 7% of our sales on advertising. Now we went to 3.4%. And what it did was, interestingly, it helped us bring in traffic and sales.

我們從 2.8% 開始。我們的規模仍然相對較小，我們這樣做很大程度上是為了增加我們的通信，特別是我們的數位媒體。所以這個數目並不是很大。你看，我們過去常常將銷售額的 5%、6%、7% 用於廣告。現在我們達到了 3.4%。有趣的是，它幫助我們帶來了流量和銷售。

Thank you.

謝謝。

All right. Thanks very much. Any other questions or comments?

好的。非常感謝。還有其他問題或意見嗎？

It appears we may have reached the end of the question-and-answer session. So therefore, I'll turn it back over to you, Farooq, for closing.

看來我們的問答環節已經結束了。因此，我將把發言權交還給法魯克，由你來結束發言。

Thank you very much. You know, again, I want to thank all of our team members for doing a really amazing job in tough conditions. It also, fortunately, our positioning is such that it gives us our vertical integration, maintaining 80% manufacturing, and having our design centers.

非常感謝。你知道，我想再次感謝我們團隊的所有成員在艱苦的條件下所做的出色工作。幸運的是，我們的定位使我們能夠實現垂直整合，保持 80% 的製造能力，並擁有自己的設計中心。

Keep in mind also, we relocated many of our design centers. We repositioned our design centers, reduced our size by 30% or so or more in the last two, three years. So our design centers have been renovated. They have been relocated wherever we need it to be.

還要記住，我們已經搬遷了許多設計中心。我們重新定位了我們的設計中心，在過去的兩三年中將規模縮小了 30％ 左右。因此我們的設計中心已經進行了翻新。它們已被重新安置到我們需要的任何地方。

And we also opened up a few. We opened up -- where did we open up? We opened up four or five new locations just last year. And we have few more coming up. Many of them are relocations and we will continue to do that.

我們也開放了一些。我們開放了——我們在哪裡開放？光是去年我們就開了四、五家新店。我們接下來還會推出更多內容。其中許多是搬遷，我們將繼續這樣做。

And again, thanks for everybody and thanks to the support of our team and the work that they do and look forward to continuing our progress. And thanks again.

再次感謝大家，感謝我們團隊的支持和他們所做的工作，並期待我們繼續進步。再次感謝。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。

All right. Thank you.

好的。謝謝。