Ethan Allen Interiors Inc. (ETD) 2026 Q3 法說會逐字稿

Good afternoon, and welcome to the Ethan Allen fiscal 2026 third quarter analyst conference call. (Operator Instructions) Please note that this conference is being recorded.

下午好，歡迎參加 Ethan Allen 2026 會計年度第三季分析師電話會議。(接線員指示) 請注意，本次會議將被錄音。

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

現在我很榮幸介紹本次會議主持人：資深副總裁、財務長兼司庫 Matt McNulty。謝謝。您可以開始了。

Thank you, operator. Good afternoon, and thank you for joining us today to discuss Ethan Allen's fiscal 2026 third 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 up the call for your questions.

謝謝，接線員。下午好，感謝各位今天加入我們，一同討論 Ethan Allen 2026 會計年度第三季業績。今天與我一同出席的是我們的董事長、總裁暨執行長 Farooq Kathwari。Kathwari 先生將在我們的事先準備發言中開場並作結，而我將在中段說明我們的財務表現。在事先準備發言結束後，我們將開放提問。

Before we begin, I'd like to remind the audience that this call is being webcast live under the News & Events tab within our Investor Relations website. A replay and transcript of today's call will also be made available on our Investor Relations website. There, you will 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.

在開始之前，我想提醒各位，本次電話會議正在我們投資人關係網站「News & Events」分頁下進行即時網路直播。今天會議的重播與逐字稿也將在我們投資人關係網站提供。您也可在該處找到今天的新聞稿，其中包含本次電話會議及新聞稿中所提及之非 GAAP 財務衡量指標的調節表。

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 quarterly report on Form 10-Q. Please refer to our SEC filings for a complete review of those risks.

我們今天的評論可能包含前瞻性陳述，該等陳述受風險與不確定性影響，可能導致實際結果出現重大差異。可能影響我們未來業績的最重要風險因素，已在我們最近一期 Form 10-Q 季度報告中說明。請參閱我們向 SEC 提交的文件，以完整檢視相關風險。

The company assumes no obligation to update or revise any forward-looking matters discussed during this call.

本公司不承擔更新或修訂本次電話會議中所討論任何前瞻性事項的義務。

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

接下來，我很高興把電話會議交給 Kathwari 先生。

Thanks, Matt. And thank you all for participating in our third quarter financial results call.

謝謝你，Matt。也感謝各位參與我們第三季財務業績電話會議。

As we reported, despite many challenges, we performed reasonably well. We were mainly impacted by reduction of business from our State Department contract, primarily due to government shutdown, lower international sales and to some extent, sluggish demand for home furnishings.

如我們所報告，儘管面臨許多挑戰，我們的表現仍算不錯。我們主要受到美國國務院合約業務減少的影響，主要原因是政府停擺、國際銷售下滑，以及在某種程度上，家居用品需求疲弱。

Our written sales in North America were flat compared to last year, while our wholesale orders declined 7.6% from reduced, as I mentioned, US government sales and slowdown in our international business.

北美地區的書面銷售額與去年持平；而我們的批發訂單則下滑 7.6%，原因如我所提及，主要是美國政府銷售減少以及國際業務放緩。

Tariffs also impacted our earnings, especially the unexpected tariffs on our Mexico manufacturing products. The increased tariffs during the quarter of about $4 million were mainly -- were the main reason of our reduced earnings.

關稅也影響了我們的獲利，尤其是對我們墨西哥製造產品所加徵的意外關稅。本季關稅增加約 400 萬美元，主要——也是我們獲利下滑的主要原因。

Matt will now provide more information, and after Matt, I will review our initiatives. Matt?

接下來 Matt 會提供更多資訊；在 Matt 之後，我將回顧我們的各項措施。Matt？

Thank you, Mr. Kathwari.

謝謝您，Kathwari 先生。

Our third quarter financial performance was highlighted by strong operating cash flow and a robust balance sheet despite operating in a challenging macroeconomic environment. Our consolidated net sales of $136 million benefited from a higher average ticket price, increased clearance sales, and fewer returns. These increases were offset by lower contract sales, a decline in delivered unit volume, and inclement weather.

我們第三季的財務表現重點在於：即使在充滿挑戰的總體經濟環境下，仍展現強勁的營運現金流與穩健的資產負債表。我們合併淨銷售額為 1.36 億美元，受惠於平均客單價提高、出清銷售增加以及退貨減少。上述增幅被合約銷售下降、交付件數下滑以及惡劣天候所抵銷。

Retail segment written orders were flat versus last year, while our wholesale segment declined 7.6% due to macroeconomic challenges, reduced government activity, and a slowdown in our international business.

零售事業部的書面訂單與去年持平；批發事業部則因總體經濟挑戰、政府活動減少以及國際業務放緩而下滑 7.6%。

Demand levels were choppy and the pace of written orders declined slightly throughout the quarter. Our retail written trends were strongest in [January] (corrected by company after the call) despite adverse weather, which slowed traffic late in the month and continued into February.

需求水準起伏不定，且本季書面訂單的增速略有放緩。我們零售端的書面訂單趨勢在 [一月]（公司於會後更正）最為強勁，儘管不利天候在月底降低了來客數，並延續至二月。

There was a pullback in demand during March following the Iran conflict, but we are excited for the introduction of several new products this spring and believe they will complement the current home furnishings Ethan Allen has to offer.

三月在伊朗衝突之後需求有所回落，但我們對今年春季推出多款新產品感到振奮，並相信它們將與 Ethan Allen 目前提供的家居用品相得益彰。

We ended the quarter with wholesale backlog of $42 million, down 23% from a year ago. Lower US State Department and international business combined with improved customer lead times helped reduce our wholesale backlog.

本季結束時，批發未交訂單為 4,200 萬美元，較一年前下降 23%。美國國務院與國際業務減少，加上客戶交期改善，協助降低了我們的批發未交訂單。

Our consolidated gross margin of 59.4% was impacted by incremental tariffs, delivering out orders with increased promotional activity and higher clearance sales, partially offset by a change in sales mix, lower inbound freight, reduced headcount, and a higher average ticket.

我們合併毛利率為 59.4%，受到新增關稅、以更高促銷力度交付既有訂單以及出清銷售增加的影響；部分影響被銷售組合變化、進口運費降低、員工人數減少以及平均客單價提高所抵銷。

Our adjusted operating income was $6.8 million with an operating margin of 5%. Lower operating margin was driven by higher tariffs, incremental digital and technology spend, fewer US government sales, and delivering out orders with higher promotions. Disciplined spending, cost control initiatives, and lower headcount helped to drive SG&A expenses down 3% and offset additional investments we are making in our business.

我們調整後營業利益為 680 萬美元，營業利益率為 5%。營業利益率下降主要由較高關稅、額外的數位與科技支出、美國政府銷售減少，以及以更高促銷力度交付既有訂單所致。嚴謹的支出紀律、成本控管措施與員工人數下降，推動 SG&A 費用下降 3%，並抵銷我們對業務所做的額外投資。

At quarter end, we had 3,105 total associates, a decrease of 6% from a year ago, with decreases noted in both wholesale and retail.

截至季末，我們共有 3,105 名員工，較一年前減少 6%，批發與零售兩端皆有下降。

Adjusted diluted EPS was $0.24. Our effective tax rate was 24.2%, which varies from the 21% federal statutory rate, primarily due to state taxes.

調整後稀釋每股盈餘（EPS）為 0.24 美元。我們的有效稅率為 24.2%，與 21% 的聯邦法定稅率不同，主要是因州稅所致。

As noted earlier, our business has been impacted by the current tariff environment, which remains dynamic and uncertain. Since the beginning of 2025, the US government has announced several different measures regarding tariffs. More recently, in February, the US Supreme Court invalidated certain IEEPA tariffs introduced last year.

如先前所述，我們的業務受到目前關稅環境影響，而該環境仍在變動且充滿不確定性。自 2025 年初以來，美國政府已宣布數項不同的關稅措施。較近期的是在二月，美國最高法院宣告去年推出的部分 IEEPA 關稅無效。

Shortly thereafter, a new 10% global import tariff under Section 122 was made effective and lasts until mid-July of this year. Our current exposure is concentrated on the 25% tariff that took effect in October 2025 under Section 232, which is on upholstered wood products produced and exported out of our Mexican manufacturing facilities.

不久之後，依據第 122 條（Section 122）實施的全球進口 10% 新關稅生效，並將持續至今年七月中旬。我們目前的主要曝險集中在依據第 232 條（Section 232）於 2025 年 10 月生效的 25% 關稅，該關稅適用於由我們墨西哥製造基地生產並出口的木製軟墊產品。

Our remaining exposure is under the aforementioned Section 122 tariff, which applies a 10% tariff on furniture manufactured and exported out of our Honduras facility, as well as on imported wood furniture from Indonesia, select fabrics from Asia, and imported home access.

我們其餘的曝險來自前述第 122 條關稅：對由我們宏都拉斯工廠製造並出口的家具課徵 10% 關稅；同時也適用於自印尼進口的木製家具、部分亞洲布料，以及進口家居配件。

In total, we estimate our current tariff exposure to be in the range of $15 million to $20 million annually.

整體而言，我們估計目前的關稅曝險每年約為 1,500 萬至 2,000 萬美元。

In the past month, the US Customs and Border Protection Agency released guidance regarding IEEPA tariff refunds, including last week's April 20 launch of software that will process IEEPA refund claims at scale. We are currently working through recoverability of previously paid IEEPA tariffs and expect refunds to take up to 80 days to receive.

在過去一個月，美國海關與邊境保護局（CBP）發布了關於 IEEPA 關稅退費的指引，包括上週 4 月 20 日推出可大規模處理 IEEPA 退費申請的軟體。我們目前正評估先前已支付之 IEEPA 關稅的可回收性，並預期退款最長可能需要 80 天才能收到。

Now turning to our liquidity. We remain debt-free with substantial liquidity to support long-term growth. We maintained a robust balance sheet and ended the quarter with $181 million in total cash and investments. During the just-completed third quarter, we generated $15 million in operating cash flow, up from $10 million a year ago due to improved working capital.

接著談我們的流動性。我們仍維持零負債，並具備充足流動性以支持長期成長。我們維持穩健的資產負債表，季末現金與投資合計為 1.81 億美元。在剛結束的第三季，我們創造了 1,500 萬美元的營運現金流，高於一年前的 1,000 萬美元，主要因營運資金改善。

Through the first nine months of fiscal 2026, we have generated $22 million in free cash flow. In February, we paid a regular quarterly dividend of $10 million or $0.39 per share. Also, as just announced in our earnings release, our Board declared a regular quarterly cash dividend of $0.39, which will be paid this May. We continue to view our dividend as an attractive use of cash and a positive return to shareholders.

在 2026 會計年度前九個月，我們已產生 2,200 萬美元的自由現金流。二月，我們支付了例行季度股利 1,000 萬美元，或每股 0.39 美元。此外，如同我們在盈餘新聞稿中剛宣布的，董事會宣告每股 0.39 美元的例行季度現金股利，將於今年五月支付。我們持續認為股利是現金的具吸引力用途，並能為股東帶來正向回報。

As I conclude my prepared remarks, we are pleased that our business model helped deliver another quarter of profitable growth. Our efforts to identify ways to leverage operating expenses are constant. We seek to properly balance investing in future growth while managing ongoing costs. Ethan Allen's vertical integration and focus on one brand are core differentiators that will help us navigate through these current industry headwinds.

在結束我事先準備的發言之際，我們很高興我們的商業模式協助我們再度交出一季獲利成長。我們持續不斷地努力找出可運用營業費用槓桿的方式。我們力求在投資未來成長與管理持續性成本之間取得適當平衡。Ethan Allen 的垂直整合以及聚焦單一品牌，是我們的核心差異化優勢，將協助我們度過目前產業逆風。

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

接下來，我把電話交回給 Kathwari 先生。

Thanks, Matt.

謝謝，Matt。

As I mentioned, we have continued to take steps to strengthen our unique vertically integrated structure, including strengthening our product offerings.

如我所提到的，我們持續採取措施強化我們獨特的垂直整合架構，包括強化我們的產品供應。

During the last six months, focus has been to introduce new relevant product programs, strengthening our retail network. We have continued to reposition our retail network in North America. Design centers numbering 172 locations with smaller footprint with major introduction of technology to help our talented interior design associates.

在過去六個月，我們的重點在於推出新的、具相關性的產品方案，並強化我們的零售網絡。我們持續在北美重新定位我們的零售網絡。設計中心共有 172 個據點，採較小的店面規模，並大幅導入科技，以協助我們優秀的室內設計同仁。

Continued strengthening our North American manufacturing, which produces about 75% of our furniture, almost all made custom on receipt of orders.

持續強化我們的北美製造能力，該部分約生產我們 75% 的家具，幾乎全部在收到訂單後依客製需求製作。

Continued strengthening our North American national and retail logistics, which enables us to deliver our products with what we call white glove delivery at one delivered price to our clients in North America.

持續強化我們在北美的全國性與零售物流，使我們能以我們所稱的白手套配送（white glove delivery），以單一到府交付價格將產品送達北美客戶。

And importantly, combining personal service of our interior designers and our manufacturing associates with technology has been a game changer. This has helped us provide great services while reducing costs.

更重要的是，將我們室內設計師與製造同仁的個人化服務結合科技，帶來了顛覆性的改變。這幫助我們在降低成本的同時，提供優質服務。

And with this brief overview, happy to open for comments and questions.

以上為簡要概述，我很樂意開放各位提出意見與問題。

(Operator Instructions) Taylor Zick, KeyBanc Capital Markets.

（接線員指示）KeyBanc Capital Markets 的 Taylor Zick。

Well, I just wanted to first ask kind of about the retail written orders. You gave some good color here, starting to slow a little bit in February, and then you saw a pullback in March, I assume, related to the geopolitical situation.

我想先問一下關於零售端的書面訂單（written orders）。你們提供了一些很好的說明，2 月開始稍微放緩，然後 3 月出現回落，我猜是與地緣政治情勢有關。

Any sense of how retail written orders are trending here so far in April? I assume there's some Liberation Day noise in there as well, but maybe you can kind of touch on that.

能否談談截至目前 4 月零售書面訂單的趨勢如何？我想其中也有一些「解放日」的雜訊，但也許你可以稍微說明一下。

Yeah, it's a good -- it's an important question. The first is that in this quarter, despite all these challenges we have had in the economy, our retail -- I mean, our written retail held up. In fact, our retail division basically written orders were about the same as last year, which is tremendously important.

是的，這是個很好的——也是很重要的問題。首先，在本季，儘管經濟面臨各種挑戰，我們的零售——我是說，我們的零售書面訂單仍維持穩健。事實上，我們零售部門的書面訂單基本上與去年大致相同，這點非常重要。

As Matt also mentioned, the decline was mostly due to the international issues and the State Department issues. So our business has held up. And now in April, it's actually been positive. There has been positive news, so that we will continue the progress that we saw despite all these challenges last quarter. We maintained our retail, and I think in April so far, it has been positive.

如 Matt 也提到的，下滑主要是由於國際議題以及國務院相關問題。因此我們的業務表現仍然穩健。而在 4 月，實際上是正成長。有一些正面的消息，因此我們將延續上季在各種挑戰下仍看到的進展。我們維持了零售表現，而我認為截至目前 4 月是正向的。

And then maybe if I can ask, maybe on the tariff side and maybe I can wrap two questions into one here. You also gave some great color on the tariffs and where you're exposed. You called out, I think, $15 million to $20 million of exposure on an annual basis. Can you kind of just talk a little bit about how you plan to mitigate some of those tariff expenses?

接著如果可以再問，關於關稅方面，我想把兩個問題合併一起問。你們也很清楚地說明了關稅以及曝險所在。你提到我記得每年大約有 1,500 萬到 2,000 萬美元的曝險。能否談談你們計畫如何緩解部分關稅費用？

And then related to that, maybe if you can touch on the gross margin as well? Because we also have rising diesel costs and increasing foam prices as well. So if you don't mind touching on that.

另外相關地，也請談談毛利率？因為我們也看到柴油成本上升以及泡棉價格上漲。如果方便的話，請一併說明。

I'll say a few words and Matt can also join. Our tariffs are -- the impact of tariffs are on our products coming, of course, from imported products, which is mostly Asia. And then recently, last year, there were tariffs imposed in our North American operations, both in Mexico and in Honduras. And interestingly, Mexico has been close to 25% and Honduras is 10%.

我先說幾句，Matt 也可以補充。關稅——關稅的影響當然主要來自我們進口產品，也就是多數來自亞洲。另外近期在去年，我們北美營運（墨西哥與宏都拉斯）也被加徵關稅。而有趣的是，墨西哥接近 25%，宏都拉斯是 10%。

So they were -- and that really is interesting, especially in Mexico, the advantage we have, of course, in Mexico to some degree is mitigated because we operate and own the manufacturing operations. And according to Mexican law, we can ship the products from Mexico to the United States at a relatively small margin. I think, what, about 5% or so? 5%. So 5%, if that was not the case, we had to buy all those products, then nobody would be able to operate 5%.

所以它們——這點確實很有意思，尤其是墨西哥。當然，我們在墨西哥的優勢在某種程度上被抵銷，因為我們自行營運並擁有製造據點。依據墨西哥法律，我們可以以相對較小的利潤率把產品從墨西哥運到美國。我想，大概是 5% 左右？5%。所以 5%，如果不是這樣、我們必須把那些產品全部用採購方式買進，那就沒有人能在 5% 的利潤率下營運。

Even with the 5% margin that we have, we still were impacted substantially with the impact of Mexico, to some degree, Honduras. And then of course, our products have come from Asia. There, the margin -- I mean, the tariffs have gone very high, but now in the last six months, tariffs have been reduced from Indonesia, from India and other places, even in China.

即使我們有 5% 的利潤率，我們仍因墨西哥的影響而受到相當大的衝擊，宏都拉斯也在某種程度上有影響。當然，我們也有產品來自亞洲。那邊的利潤——我是說，關稅曾經升得非常高，但在過去六個月，來自印尼、印度及其他地區，甚至中國的關稅都有所降低。

So I think that we do hope that there is some resolution to what is taking place with the United States and Mexico. It's nothing to do with business. There's a lot of politics that has resulted in those high tariffs.

因此我認為，我們確實希望美國與墨西哥之間目前發生的事情能有一些解決方案。這與商業無關。有很多政治因素導致了那些高關稅。

Yeah, that's a great answer and I'd just like to add a little bit more on to that for you, Taylor.

是的，這回答得很好，我也想再補充一些內容給你，Taylor。

Your first part of your question was what steps have we taken? And I think in my prepared remarks, I said the tariff situation is dynamic and ongoing, meaning that the rules and the regulations continue to change. The Section 122, the 10% global tariff rate was 150-day set tariff rate, which is set to expire in July. So the rules may again change in July.

你問題的第一部分是我們採取了哪些步驟？我想在我事先準備的發言中提到，關稅情勢是動態且持續變化的，意思是規則與法規會持續改變。第 122 條（Section 122）的 10% 全球關稅稅率是設定為 150 天的暫定稅率，預計在 7 月到期。因此規則可能在 7 月再次改變。

But we've got to play with what the rules are as of today. So we took certain steps and we continue to take certain steps to mitigate the tariffs. Those include partner sharing or sharing of costs with vendors, sourcing diversification, identifying alternative sources for products, if possible.

但我們必須依照今天現行的規則來應對。因此我們採取了一些步驟，並且持續採取一些步驟來緩解關稅影響。這些包括與供應商分攤成本或共同承擔成本、分散採購來源、在可能的情況下找出替代產品來源。

Third is absorb some of the costs. We know we can't pass along all of them or have our vendors absorb all of them, so we do absorb some ourselves. And last is price increase. We mentioned on the previous call last quarter that we took about an average 5% price increase in October and November of 2025. So those have helped mitigate some of that incremental tariff exposure that I quantified of $15 million to $20 million.

第三是自行吸收部分成本。我們知道不可能把全部成本都轉嫁出去，也不可能讓供應商吸收全部成本，所以我們也會自行吸收一部分。最後是調漲價格。我們在上一季的前一次電話會議中提到，我們在 2025 年 10 月與 11 月平均調漲了約 5%。因此，這些措施有助於緩解我所量化的每年 1,500 萬到 2,000 萬美元的新增關稅曝險。

But those tariffs really impacted our operating margins. I mean, when you -- if you look at our operating margins coming down, it's mostly because of those tariffs. Our retail business in the United States held up.

但這些關稅確實影響了我們的營業利益率。我的意思是，當你——如果你看我們的營業利益率下滑，主要就是因為那些關稅。我們在美國的零售業務仍然維持穩健。

All right. Next, any other questions?

好的。接下來，還有其他問題嗎？

No, I think we covered it here. I'll pass it along. Thanks so much, guys.

沒有，我想我們在這裡已經涵蓋了。我會轉達。非常感謝，各位。

Thanks very much.

非常感謝。

(Operator Instructions) Cristina Fernandez, Telsey Advisory Group.

(接線員指示) Cristina Fernandez，Telsey Advisory Group。

Hello, Cristina. How are you?

你好，Cristina。你最近好嗎？

I'm doing good. Good afternoon, Farooq and Matt. I had a couple of questions. The first one is on the State Department contract and just the wholesale contract side of the business. It's been a pressure point now for at least a year. What is your outlook from here on that part of the business? Do you think it's near reaching stabilization or should we expect weakness for the rest of 2026?

我很好。下午好，Farooq 和 Matt。我有幾個問題。第一個是關於國務院合約，以及業務中批發合約這一端。這一直是壓力點，至少已經一年了。你們對這部分業務接下來的展望如何？你們認為是否接近穩定，還是我們應該預期 2026 年剩餘時間仍會疲弱？

Cristina, a number of factors. First is that we have had a fairly long-term contract with the State Department. And recently, just in the last few months, the contract has been up for renewal, so we had to bid and I'm sure others have bid on it, too. So the bidding has taken place, and the State Department is right now reviewing all those bids, and we do expect to hear from the State Department.

Cristina，有幾個因素。第一，我們與國務院有一份相當長期的合約。而最近，就在過去幾個月，該合約到了續約期，所以我們必須投標，我相信其他人也有投標。因此投標已經完成，國務院目前正在審查所有投標案，我們也預期會收到國務院的回覆。

And depending on what happens, we do have an opportunity, which we have done: increased some of our prices based on these issues of tariffs. But I think in the next few -- I think hopefully in the next couple of months, we will know about the new contract. Right now, we do have the current contract where we are getting business, not at the level we did last year, but the business is coming in under the current contract.

而視結果而定，我們確實有機會——而且我們也已經做了——基於關稅等議題上調部分價格。但我想在接下來幾個——希望在接下來一兩個月內，我們就會知道新合約的情況。目前我們仍有現行合約，仍有業務進來，雖然不如去年同期的水準，但在現行合約下仍持續有業務進來。

Then the second question I had was on the impact of promotions you mentioned during the quarter. Is that mostly related to the increased promotional activity back in the second quarter and those deliveries being made now? Or did you offer incremental promotions to consumers during this current quarter versus a year ago?

我第二個問題是關於你們在本季提到的促銷影響。這主要是與第二季促銷活動增加、而相關出貨現在才交付有關嗎？還是說，相較於一年前，你們在本季對消費者提供了額外的促銷？

There are two factors. First is we decided to increase our marketing spend, both in our -- especially in our digital mediums. And so we increased that and that's when you look at our advertising, a lot of it was done because of the fact we increased it now, which is the right thing to do because our digital mediums are tremendously important.

有兩個因素。第一，我們決定提高行銷支出，尤其是在數位媒體上。因此我們增加了投入；你看到我們的廣告，其中很大一部分是因為我們現在加大投放，這是正確的做法，因為我們的數位媒體極其重要。

So that is what -- you look at it not because of the -- not only because of our existing promotions, but we expanded in a very strong manner in our digital mediums. And that has helped us and will continue to help us, and we do have the flexibility as we go forward in determining how much we spend. But last quarter, we spent more relative to the sales, that's why our percentage of marketing was higher.

所以你看到的並不是——不僅僅是因為我們既有的促銷，而是我們在數位媒體上以非常強勁的方式擴大投入。這已經幫助了我們，並將持續幫助我們；而且我們在往前走時，也有彈性來決定要花多少。但上一季相對於銷售額而言，我們花得更多，所以行銷費用占比更高。

And then the last question I had was on the real estate plans. On the press release, you noted a couple of new locations planned for this year. Do you still see opportunity, and I guess mostly in the US, to enter newer markets that you're not in or are most of these store openings relocations or updates to existing stores?

最後一個問題是關於不動產計畫。在新聞稿中，你們提到今年規劃幾個新據點。你們是否仍看到機會——我想主要是在美國——進入你們尚未進入的新市場？還是這些開店多半是既有門市的搬遷或更新？

It's both. In the last couple of years, or three years, we have spent a great deal of effort, resources to reposition our existing network. At that existing network, the repositioning has involved. First, investing in our existing design centers to make sure they project well and also reducing their size.

兩者都有。在過去兩年或三年，我們投入了大量心力與資源，來重新定位我們既有的據點網絡。在既有網絡方面，重新定位包含了——第一，投資我們現有的設計中心，確保其呈現良好，同時也縮小其面積。

We have been able to overall reduce the size of our design centers by at least 25% to 30% because of the technology that we are able today to utilize in helping our designers work with clients. So that's tremendously important.

我們整體已能將設計中心的面積縮小至少 25% 到 30%，因為我們如今能運用科技來協助設計師與客戶合作。因此這非常重要。

The second is we do have a number of locations that we actually currently are working on, about five new locations in the United States. And we also have opened up one or two locations in Canada. So we'll continue to open up new locations, but also relocate the current ones. And as I said, we have had a major impact of taking out the current locations, repositioning them in both size and also in new products.

第二，我們確實有一些據點正在推進中，在美國大約有五個新據點。我們也在加拿大開了 一到兩個據點。因此我們會持續開設新據點，同時也會搬遷現有據點。如我所說，我們在汰換現有據點、並在面積與新產品兩方面重新定位上，已產生重大影響。

So one of the factors we've got to keep in mind is that our -- and that affected to some degree our margin, is the fact that bringing in lots of new products meant we had to sell what we have. That had somewhat of an impact on our margins because those products, we had to sell and we're still selling them.

所以我們必須記住的一個因素是：這在某種程度上影響了我們的毛利率——因為引進大量新產品意味著我們必須把現有庫存賣掉。這對毛利率造成了一些影響，因為那些產品我們必須出售，而且我們仍在銷售中。

All right, Cristina, any other questions or comments?

好的，Cristina，還有其他問題或意見嗎？

Sir, there appears to be no additional questions at this time, so I'll hand the floor back over to Mr. Kathwari for closing remarks.

先生，目前看來沒有其他問題了，我將把時間交回給 Kathwari 先生作結語。

Well, thank you very much. And as I said, on one hand, we are going through challenging times, but the good news is we have continued to position ourselves well. We have every week. I focus on five important things.

好的，非常感謝。如我所說，一方面我們正處於充滿挑戰的時期，但好消息是我們持續把自身定位得很好。我們每週——我都專注在五件重要的事情上。

First is talent. We are blessed with very strong talent in our vertically integrated enterprise from our manufacturing, to our logistics, to our merchandising, to marketing, logistics.

第一是人才。我們在垂直整合的企業中，從製造、物流、商品企劃到行銷、物流，都擁有非常強的人才。

The second thing is, as we look at after talent, it's technology. Technology has played a tremendously important role in everything we do today.

第二件事，在人才之後，就是科技。科技在我們今天所做的一切中都扮演了極其重要的角色。

Third is marketing. Marketing is important at national level, at the retail level.

第三是行銷。行銷在全國層級、在零售層級都很重要。

And fourth is our whole focus on making sure that we provide great service.

第四是我們全力確保能提供卓越的服務。

And fifth is tremendously important is social responsibility.

第五個同樣極其重要的是社會責任。

Those five things are critical, and I think has helped us maintain a strong presence in all our operations.

這五件事至關重要，我認為也幫助我們在所有營運中維持強勁的存在感。

Thank you very much for participating and look forward to our continued -- making sure we continue to focus on our business and to grow our business.

非常感謝各位參與，也期待我們持續——確保我們持續專注於業務並推動業務成長。

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

謝謝。今天的電話會議到此結束。您現在可以掛斷電話。感謝各位的參與。