Honest Company Inc (HNST) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Honest Company third-quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們先生們，謝謝你們的支持。歡迎參加 Honest Company 2024 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would like now to turn the conference over to Allison Malkin of ICR. Please go ahead.

現在我想將會議交給 ICR 的艾莉森·馬爾金 (Allison Malkin)。請繼續。

Good afternoon, everyone. Thank you for joining our third quarter 2024 conference call. Joining me today from the Honest Company are Chief Executive Officer, Carla Vernon; and Chief Financial Officer, Dave Loretta. Before we start, I would like to remind you that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about the outlook of our business and other matters referenced in our earnings release issued today. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially.

大家下午好。感謝您參加我們的 2024 年第三季電話會議。今天加入我的是來自 Honest Company 的執行長 Carla Vernon；財務長戴夫‧洛雷塔 (Dave Loretta)。在開始之前，我想提醒您，我們今天將做出聯邦證券法含義內的某些前瞻性聲明，包括有關我們業務前景的聲明以及我們今天發布的收益報告中引用的其他事項。這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果出現重大差異。

Please refer to our earnings release issued today as well as our SEC filings for a more detailed description of the risk factors that may affect our results. Please also note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events, except as required by law.

請參閱我們今天發布的收益報告以及我們向 SEC 提交的文件，以了解可能影響我們業績的風險因素的更詳細描述。另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的意見，我們沒有義務根據新資訊或未來事件修改或公開發布對這些前瞻性陳述的任何修改結果，法律要求的除外。

Also, during this call, we will discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP to GAAP measures in the financial results section of today's earnings release. A live broadcast of this call is also available on the Investor Relations section of our website at investors.honest.com.

此外，在這次電話會議中，我們將討論非公認會計準則財務措施，這些措施調整我們的公認會計準則結果以消除某些項目的影響。您將在今天財報的財務表現部分找到有關這些非 GAAP 財務指標的更多資訊以及這些非 GAAP 與 GAAP 指標的調整表。本次電話會議的現場直播也可在我們網站的投資者關係部分觀看：investors.honest.com。

With that, I'll turn the call over to Carla.

這樣，我就把電話轉給卡拉。

Thanks, Allison. Hello, everyone, and thank you for joining us today. I'm pleased to share the details of our strong performance for the third quarter of 2024. The continued financial improvement of Honest is due in large part to the dedication of our teams and their commitment to delivering a collection of cleanly designed and consumer-loved personal care products. Our transformation pillars of brand maximization, margin enhancement and operating discipline provide our teams with a framework that puts our product mission in balance with our financial mission.

謝謝，艾莉森。大家好，感謝您今天加入我們。我很高興分享我們2024 年第三季強勁業績的詳細資訊。產品個人護理產品。我們的品牌最大化、利潤提升和營運紀律等轉型支柱為我們的團隊提供了一個框架，使我們的產品使命與財務使命保持平衡。

For the third quarter of fiscal 2024, our results include three notable financial achievements. First, we delivered our highest quarterly revenue in the history of the Honest Company with $99 million in sales, which was an increase of 15% year-over-year. Second, we achieved a gross margin of 39%, representing an expansion of 710 basis points over the same period last year. And lastly, we generated adjusted EBITDA of $7 million, representing our fourth consecutive quarter of positive adjusted EBITDA. With this momentum and strong performance in the third quarter, we are raising our full year 2024 guidance for both revenue and adjusted EBITDA.

2024 財年第三季度，我們取得了三項顯著的財務成就。首先，我們實現了 Honest Company 史上最高的季度收入，銷售額為 9,900 萬美元，年增 15%。其次，我們實現了39%的毛利率，比去年同期擴大了710個基點。最後，我們的調整後 EBITDA 為 700 萬美元，這代表我們連續第四季度實現正向調整 EBITDA。憑藉第三季的這一勢頭和強勁表現，我們上調了 2024 年全年營收和調整後 EBITDA 的指引。

In addition to these strong financial measures, we're pleased that the consumption of Honest products was stronger than the competitive set of personal care categories. In this quarter, according to Circana tracked channel data, Honest portfolio grew 9% year-over-year compared to a 2% decline in the consumption for the comparable personal care sector. This serves as further evidence of the strength of the Honest brand and how we uniquely meet the needs of today's families. Despite challenging macroeconomic factors and consumer spending pressures, we continue to see increasing interest in clean product solutions. According to Mintel, over 70% of consumers are concerned about the effects of certain chemicals in personal care products and prioritize safe for sensitive skin claims to meet the needs of their families.

除了這些強而有力的財務指標之外，我們很高興看到 Honest 產品的消費量強於競爭性的個人護理類別。根據 Circana 追蹤的通路數據，本季度，Honest 投資組合年增 9%，而同期個人護理行業的消費下降 2%。這進一步證明了 Honest 品牌的實力以及我們如何以獨特的方式滿足當今家庭的需求。儘管宏觀經濟因素和消費者支出壓力具有挑戰性，但我們仍然看到人們對清潔產品解決方案的興趣與日俱增。據英敏特稱，超過 70% 的消費者擔心個人護理產品中某些化學物質的影響，並優先考慮對敏感皮膚安全的聲明，以滿足家人的需求。

Sometimes, the importance of our mission comes to life most powerfully through the personal interactions we have with the people who use Honest products. This happened for me during a photo shoot we held here at our Honest office. We wanted to feature real Honest users, so we hosted an open casting call and reached out to our community to invite them to come and be part of our campaign. It was such a beautiful and wide array of people of every age. As the photo shoot was wrapping up, I was approached by a woman who was probably in her 20s or 30s.

有時，透過我們與使用 Honest 產品的人的個人互動，我們使命的重要性得到了最強大的體現。這件事發生在我在誠實辦公室拍照時。我們希望吸引真正誠實的用戶，因此我們舉辦了一次公開選角電話會議，並聯繫我們的社區，邀請他們來參加我們的活動。這是一個如此美麗而廣泛的各個年齡層的人。當照片拍攝結束時，一位大約 20 多歲或 30 多歲的女性走過來。

She wanted to tell me the story of her journey fighting and recovering from cancer. During her treatment, she tried product after product to keep her skin soft and moisturized through the brutal cancer treatment. She told me that when she discovered our hydrogel cream, which is a very lightweight moisturizer, it was the first product she found gentle enough and moisturizing enough to use without irritating her delicate skin. She even showed me an app that she used as a frequent resource because it rates products for their clean ingredients. And there we were, our Honest products, doing what they were created to do, provides safe, efficacious personal care for whoever may need it.

她想告訴我她與癌症抗爭和康復的故事。在治療期間，她嘗試了一種又一種產品，以在殘酷的癌症治療中保持皮膚柔軟和滋潤。她告訴我，當她發現我們的水凝膠霜（一種非常輕盈的保濕霜）時，這是她發現的第一個足夠溫和且足夠保濕且不會刺激她嬌嫩皮膚的產品。她甚至向我展示了一個她經常使用的應用程序，因為它可以對產品的清潔成分進行評級。我們的誠實產品正在發揮其設計初衷，為任何需要的人提供安全、有效的個人護理。

So it comes as no surprise to me that our hydrogel cream is growing 34% year-to-date in consumption at Amazon and yet has so much runway with only 21% ACV distribution in national retail stores. At Honest, we are so fortunate because we often hear consumer testimonials like the one I just shared, and that inspires us every single day to deliver solutions to our community by committing to what we call the Honest standard. This standard provides our teams with an important set of formulation and design principles that make Honest products well suited to meet the moment. I'm an Honest mom now, but our products didn't exist when my own teenagers were babies. Today, I'm so pleased that as my grandniece Kyla was born last month, her parents, the many new parents on our own Honest team and all of the parents in our extended community of Honest shoppers can rest at ease knowing that our rigorous Honest standard includes a list of over 3,000 ingredients of concern that we choose not to use in our products.

因此，今年迄今為止，我們的水凝膠霜在亞馬遜的消費量增加了 34%，但在全國零售店的 ACV 分銷量卻如此之大，這對我來說並不奇怪。在 Honest，我們非常幸運，因為我們經常聽到像我剛剛分享的那樣的消費者評價，這每天都激勵我們透過致力於我們所謂的 Honest 標準來為社區提供解決方案。該標準為我們的團隊提供了一套重要的配方和設計原則，使 Honest 產品非常適合滿足當前的需求。我現在是一個誠實的媽媽，但當我自己的青少年還是嬰兒時，我們的產品還不存在。今天，我很高興我的侄女凱拉上個月出生了，她的父母、我們誠實團隊中的許多新父母以及我們誠實購物者大社區中的所有父母都可以放心，因為他們知道我們嚴格的誠實標準包括3,000 多種我們選擇不在產品中使用的令人擔憂的成分清單。

We are very proud that our Honest standard is so high and is a higher standard than is required by any US or European Union regulation. It is through this standard that we meet the high expectations of Honest families and stand out in the market of personal care products. And it also helps drive the brand growth at the heart of our brand maximization transformation pillar. Our brand's strength is evident through our consumption growth of 9% nationally and 19% at Amazon.

我們非常自豪我們的誠實標準如此之高，並且比任何美國或歐盟法規要求的標準都要高。正是透過這項標準，我們滿足了誠實家庭的高期望，並在個人護理產品市場中脫穎而出。它還有助於推動我們品牌最大化轉型支柱核心的品牌成長。我們的品牌實力顯而易見，全國消費成長 9%，亞馬遜消費成長 19%。

The resonance of our Honest standard can also be seen in the growth of our community and our distribution. This quarter, our household penetration among Honest users reached 6.7%, an increase of 23 basis points versus last year. And our retail distribution grew by 4%, while sustaining strong sales momentum with velocities up 5%. Together, our performance and our alignment with growing consumer needs has made Honest the leading natural baby personal care brand in the United States. While we're confident in our top line growth, our #1 priority remains margin improvement and strengthening our financial foundation through our transformation pillars of margin enhancement and operating discipline.

我們誠實標準的共鳴也可以從我們的社群和發行版的發展中看到。本季度，誠實用戶家庭滲透率達 6.7%，比去年增長 23 個基點。我們的零售分銷成長了 4%，同時保持強勁的銷售勢頭，速度成長了 5%。我們的業績以及我們與不斷增長的消費者需求的結合使 Honest 成為美國領先的天然嬰兒個人護理品牌。雖然我們對營收成長充滿信心，但我們的第一要務仍然是提高利潤率，並透過提高利潤率和營運紀律等轉型支柱來加強我們的財務基礎。

On a recent visit to our Las Vegas distribution center, my team and I saw how this focus across the organization is paying off. During our visit, our supply chain and logistics teams shared how they optimized a previously cumbersome approach to our pallet management. In prior years, when our order quantities were smaller, the team would receive pallets that needed to be broken down to apply a product identity label to each case only to then reassemble the labeled cases back into partial and mixed pallets prior to shipping. This year, in partnership with our largest retailers, the team identified a set of items that are frequently ordered in full pallet quantities. And now those pallets get labeled simply and correctly without the need to break down and reassemble them.

在最近參觀我們的拉斯維加斯配送中心時，我和我的團隊看到了整個組織的這種關注是如何得到回報的。在我們訪問期間，我們的供應鏈和物流團隊分享了他們如何優化以前繁瑣的托盤管理方法。前幾年，當我們的訂單數量較小時，團隊收到的托盤需要分解，以便在每個箱子上貼上產品識別標籤，然後在發貨前將貼有標籤的箱子重新組裝成部分托盤和混合托盤。今年，該團隊與我們最大的零售商合作，確定了一組經常以全托盤數量訂購的商品。現在，這些托盤可以簡單、正確地貼上標籤，無需分解和重新組裝。

This optimization allowed us to save on labor, order turnaround time and retail pickup speed. This process improvement demonstrates the ability of our transformation pillars to unlock the power and scale of the Honest brand and our business model. As I close, I would like to thank our entire Honest team for their commitment to driving continued financial improvement and performance momentum for the Honest brand. I'm incredibly proud of this team and the extraordinary execution this quarter. And with that, I will turn it over to Dave to share the financial results of our third quarter and details on our updated financial outlook.

這種優化使我們能夠節省勞動力、訂單週轉時間和零售取貨速度。這項流程改善證明了我們的轉型支柱有能力釋放誠實品牌和業務模式的力量和規模。在結束演講時，我要感謝我們整個 Honest 團隊致力於推動 Honest 品牌持續的財務改善和業績成長。我為這個團隊和本季非凡的執行力感到無比自豪。接下來，我將把它交給戴夫，分享我們第三季度的財務業績以及我們更新的財務前景的詳細資訊。

Thank you, Carla. As noted, our third quarter results surpassed our expectations across key financial metrics, and we saw significant accomplishments toward our transformation pillars. On the top line, our 15% revenue increase was balanced across distribution and velocity gains and included shipments in support of retail and digital events. We generated gross margin expansion, which reached a new high of 38.7%, driven by benefits across the cost structure through supply chain efficiencies and product cost savings. The execution of our transformation pillars continues to deliver efficiencies as we grow, demonstrated by our strong revenue growth, expansion in gross margin and disciplined SG&A spend leading to profitability in the quarter.

謝謝你，卡拉。如上所述，我們第三季的業績在關鍵財務指標上超出了我們的預期，我們在轉型支柱方面取得了重大成就。在營收方面，我們 15% 的營收成長在分銷和速度增益方面取得了平衡，其中包括支援零售和數位活動的出貨量。在供應鏈效率和產品成本節約帶來的成本結構效益的推動下，我們的毛利率實現了成長，達到了 38.7% 的新高。隨著我們的發展，我們的轉型支柱的執行繼續提高效率，這從我們強勁的收入成長、毛利率的擴大以及嚴格的銷售、管理和行政支出導致本季度盈利得到證明。

And as provided in our press release issued today, we are raising our annual guidance for the second time this year, reflecting our year-to-date performance and our positive view of the business. Let me turn to our third quarter results. As Carla noted previously, net revenue was $99 million, up 15% from the prior year third quarter, driven by strong performance across our baby products and wipes portfolios. Also noted, retail tracked channel consumption grew 9% compared to the comparative categories, which were down 2% in the same period. And at Amazon, our largest digital customer, consumption in the period was up 19%.

正如我們今天發布的新聞稿中所述，我們今年第二次提高了年度指導，反映了我們今年迄今為止的業績以及我們對業務的積極看法。讓我談談我們第三季的業績。正如 Carla 先前指出的那樣，在我們的嬰兒產品和濕紙巾產品組合強勁表現的推動下，淨收入為 9,900 萬美元，比去年第三季成長 15%。另請注意，零售追蹤通路消費與同期下降 2% 的比較類別相比增長了 9%。我們最大的數位客戶亞馬遜的消費量在同一時期增加了 19%。

We advanced our brand maximization pillar with balanced revenue growth seeing increases in distribution and velocity. We continue to realize increased consumer demand across our core business offerings, which is allowing Honest to play a bigger role in consumers' daily lives. In fact, our community is purchasing our brand across multiple categories, which drove increased household penetration and spend per household in the quarter. As I mentioned, revenue also benefited from shipments to support retail events in the quarter, including our Target 10th anniversary collection and the limited edition diapers and wipes sprints at Walmart in celebration of Hispanic Heritage Month. Additionally, we saw strong shipments in preparation for Amazon Prime Day events in July and October.

我們透過均衡的收入成長推進了我們的品牌最大化支柱，看到了分銷和速度的增加。我們不斷認識到消費者對我們核心業務的需求不斷增長，這使得 Honest 在消費者的日常生活中發揮更大的作用。事實上，我們的社群正在多個類別中購買我們的品牌，這推動了本季家庭滲透率和每戶支出的增加。正如我所提到的，收入也受益於支持本季度零售活動的發貨量，包括我們的 Target 10 週年紀念系列以及沃爾瑪為慶祝西班牙傳統月而推出的限量版尿布和濕巾衝刺。此外，我們還看到了為 7 月和 10 月亞馬遜 Prime Day 活動做準備的強勁發貨量。

During October Prime Day, our products performed incredibly well with our 720 count Clean Conscious Wipes landing in the top 100 performing deals site-wide in terms of unit volumes sold. Gross margin for the third quarter was 38.7%, a new record and expanded 710 basis points versus last year, with roughly 400 basis points related to supply chain cost reductions and 300 basis points related to product cost reductions. As guided by our margin enhancement pillar, we are confident in our ability to profitably grow the business as we benefit from sustainable cost savings. Through our operating discipline pillar, we are also mindful and actively planning for levers that we can use in response to an ever-changing sourcing and supply chain landscape. This includes the potential for new tariffs, commodity price increases or disruptions to logistics.

在 10 月 Prime Day 期間，我們的產品表現非常出色，我們的 720 張 Clean Conscious 濕紙巾以銷售單位數量計算，躋身全場交易前 100 名。第三季毛利率為38.7%，創歷史新高，較去年擴大710個基點，其中約400個基點與供應鏈成本降低有關，300個基點與產品成本降低有關。在我們的利潤提升支柱的指導下，我們對實現業務獲利成長的能力充滿信心，因為我們受益於可持續的成本節約。透過我們的營運紀律支柱，我們也留意並積極規劃可以用來應對不斷變化的採購和供應鏈格局的槓桿。這包括新關稅、商品價格上漲或物流中斷的可能性。

Moving on to expenses. In total, operating expense increased $3 million compared to the third quarter last year, but as a percentage of revenue generated 220 basis points of leverage. Breaking this down further, SG&A as a percentage of revenue decreased 440 basis points compared to last year. Our diligence around managing expense across the organization while generating revenue growth has contributed to the majority of the strong leverage year-over-year. That said, included in this quarter's SG&A were nonrecurring legal expense of $4.1 million.

繼續討論支出。與去年第三季相比，營運費用總計增加了 300 萬美元，但佔收入的百分比產生了 220 個基點的槓桿。進一步細分，SG&A 佔收入的百分比與去年相比下降了 440 個基點。我們在管理整個組織的費用的同時創造收入成長的努力為大部分同比強勁槓桿做出了貢獻。也就是說，本季的 SG&A 包括 410 萬美元的非經常性法律費用。

In the fourth quarter, we expect an additional $4 million to $5 million related to this nonrecurring expense. Marketing expense totaled $13 million and increased $4 million from the prior year third quarter to 13.3% of revenue versus 10.6% of revenue last year, as expected. We continue to seek a balanced approach to gaining brand trial, building awareness and increasing household penetration. The combination of double-digit revenue growth and expansion in gross margin offset the increase in operating expenses and led to an $8 million improvement in operating income for the quarter versus an operating loss last year. In addition, adjusted EBITDA was positive $7 million compared to negative $1 million last year.

在第四季度，我們預計與此非經常性費用相關的額外費用為 400 萬至 500 萬美元。行銷費用總計 1,300 萬美元，比去年第三季增加 400 萬美元，佔營收的 13.3%，而去年則為營收的 10.6%，符合預期。我們繼續尋求一種平衡的方法來獲得品牌試用、建立知名度和提高家庭滲透率。兩位數的收入成長和毛利率的擴大相結合抵消了營運費用的增加，並導致本季度的營運收入比去年的營運虧損增加了 800 萬美元。此外，調整後的 EBITDA 為正 700 萬美元，而去年為負 100 萬美元。

This is our fourth consecutive quarter of positive adjusted EBITDA and highlights that the execution of our strategy through the transformation pillars is driving profitable growth as intended. Turning to the balance sheet. We continue to build a strong financial foundation with quarter end cash of $53 million and no debt outstanding. Inventory at quarter end was $75 million, a decrease of $5 million from the end of the third quarter of 2023. We remain comfortable with the level of our inventory as we enter the fourth quarter and we'll maintain appropriate levels to support our expected growth.

這是我們連續第四個季度調整後的 EBITDA 為正數，並突顯出我們透過轉型支柱執行策略正在按預期推動利潤成長。轉向資產負債表。我們繼續建立強大的財務基礎，季末現金達 5,300 萬美元，且無未償債務。季度末的庫存為 7500 萬美元，比 2023 年第三季末減少了 500 萬美元。

Our operating discipline pillar is driving efficiencies in our working capital usage, which led to a sequential increase of $17 million in cash flow versus the second quarter and $3 million compared to the third quarter of last year. Turning to guidance. Given our strong performance and positive outlook, we are increasing our full year revenue and adjusted EBITDA guidance for the second time this year. First, let me share our revenue outlook. We are now raising our revenue guidance to the high single-digit percentage growth range year-over-year, which is an increase to our previous guidance for revenue in the mid- to high single-digit percentage growth range.

我們的營運紀律支柱正在提高營運資金的使用效率，這使得現金流量比第二季增加了 1,700 萬美元，比去年第三季增加了 300 萬美元。轉向指導。鑑於我們強勁的業績和積極的前景，我們今年第二次增加全年收入並調整 EBITDA 指引。首先，讓我分享一下我們的收入前景。我們現在將收入指引提高到同比高個位數百分比成長範圍，這比我們先前的中高個位數百分比成長範圍的收入指引有所提高。

As you are aware, we plan our business on an annual basis, and we may experience quarterly fluctuations in growth rates due to the timing of distribution gains and shipments. Based on the current view of our order flow, we do not expect to repeat the earlier timing of shipments, which benefited Q4 of 2023. Second, with the significant progress we're making on expanding margins and controlling costs, we now expect adjusted EBITDA in the range of $20 million to $22 million versus the previous guidance of $15 million to $18 million. This represents an improvement of over $30 million from last year. Annual gross margin is expected in the range of 37% to 38% as we benefit from savings in product costs and supply chain efficiencies.

如您所知，我們每年規劃我們的業務，由於分銷收益和發貨的時間表，我們可能會經歷季度成長率波動。根據我們目前對訂單流的看法，我們預計不會重複較早的發貨時間，這對2023 年第四季度有利。預計調整後的EBITDA範圍為 2,000 萬至 2,200 萬美元，而先前的指引為 1,500 萬至 1,800 萬美元。這比去年增加了超過 3000 萬美元。由於我們受益於產品成本的節省和供應鏈效率的提高，年毛利率預計在 37% 至 38% 之間。

As we look ahead, we believe we have strengthened our foundation for future growth and expect the ongoing execution of our strategy to deliver annual revenue growth, expand profit margins and generate strong cash flow, which also benefits from our asset-light business model. The investments we do make in the business are ultimately in support of expanding the availability of Honest products to all places our community shops. As a result, we believe we are well positioned to continue building on our financial gains and drive increased value for our shareholders. And with that, I'll turn the call over to the operator.

展望未來，我們相信我們已經鞏固了未來成長的基礎，並期望持續執行我們的策略，以實現年度收入成長、擴大利潤率並產生強勁的現金流，這也受益於我們的輕資產業務模式。我們在業務中所做的投資最終是為了支持將 Honest 產品的供應範圍擴大到我們社區商店​​的所有地方。因此，我們相信我們處於有利地位，可以繼續擴大我們的財務收益，並為股東增加價值。然後，我會將電話轉給接線生。

(Operator instructions)

（操作員說明）

Aaron Gray, AGP.

亞倫·格雷，AGP。

Nice quarter. So, first question for me, you mentioned strong consumption trends, but also talked about some shipment benefits. So curious if you could quantify how much of the shipment benefits impacted the quarter. I believe that also led to the implied softer growth for 4Q. So that would be helpful there.

不錯的季度。所以，我的第一個問題，您提到了強勁的消費趨勢，但也談到了一些出貨優勢。很好奇您是否可以量化出貨量收益對本季的影響有多大。我相信這也導致了第四季的成長放緩。所以這會很有幫助。

Aaron, this is Dave. The consumption trend that we saw in the quarter, we're really excited about at retail level, 9% up with Amazon, 19%. And when you blend the two together, they do kind of resemble our revenue growth rate of 15% for that period of time. So pleased with that performance and how the team delivered it. In terms of the incremental shipments that we did realize, and those were in line with the retail events that we had, we talked about in our second quarter, both an event at Target and an event at Walmart and then Amazon Prime Day, both the supply the July Prime Day and the October Prime Day since that was really just the first week into that next week after our third quarter ended.

亞倫，這是戴夫。我們對本季看到的零售層面的消費趨勢感到非常興奮，亞馬遜成長了 9%，成長了 19%。當你將兩者混合在一起時，它們確實有點類似於我們那段時間 15% 的收入成長率。對這樣的表現以及團隊的表現非常滿意。就我們確實實現的增量出貨量而言，這些與我們在第二季度舉辦的零售活動一致，包括塔吉特的活動和沃爾瑪的活動，然後是亞馬遜 Prime Day，這都是供應七月黃金日和十月黃金日，因為那實際上只是我們第三季結束後下週的第一周。

So to put some context around the percentage growth rate, you could think of it as roughly 3 to 4 percentage points of our revenue growth to be attributed to supplying that inventory for those events. And the balance is really ongoing (inaudible) in the business from a consumption standpoint and order flow.

因此，為了了解百分比成長率的一些背景，您可以將其視為我們收入成長的大約 3 到 4 個百分點，這歸因於為這些活動提供庫存。從消費和訂單流的角度來看，業務中的平衡確實是持續存在的（聽不清楚）。

Okay. Great. I appreciate it. Second question for me. So just as we think bigger picture, last call, you guys talked about investments to drive more growth that continues to kind of bear fruit for you guys, building a nice cash balance.

好的。偉大的。我很感激。我的第二個問題。因此，正如我們思考更大的前景一樣，在最後一次電話會議中，你們談到了推動更多成長的投資，這將繼續為你們帶來成果，建立良好的現金餘額。

So just as we look going forward and into 2025 and the holiday season, how much more confidence do you guys have to kind of keep digging deeper and pushing the lever on different marketing or investing even on the gross margin side in trade to kind of drive continued growth versus letting more of that drop down to the bottom line?

因此，正如我們展望 2025 年和假期季節一樣，你們有多少信心繼續深入挖掘並推動不同營銷的槓桿，甚至在貿易毛利率方面進行投資以推動增長繼續增長還是讓更多的收入下降到底線？

Yes, sure, Aaron. As we talked about in the second half of the year, where we did intend to increase both the marketing spend and the trade promotion investments, we're pleased with how that played out for us. As you saw in the third quarter, marketing was up (inaudible) relative to last year and say it was a little over 13% and trade promotion as well was deeper in what we applied for that period of time. So we're comfortable with that flexibility we've got to dial up our marketing to drive the right kind of awareness and brand trial. Some of that evidence is playing out in the stats that we shared around household penetration.

是的，當然，亞倫。正如我們在下半年談到的那樣，我們確實打算增加行銷支出和貿易促進投資，我們對結果感到滿意。正如您在第三季度看到的那樣，行銷相對於去年有所上升（聽不清楚），並表示略高於 13％，並且我們在那段時間應用的貿易促銷也更加深入。因此，我們對這種靈活性感到滿意，我們必須加強行銷力度，以推動正確的認知和品牌試用。我們分享的有關家庭滲透率的統計數據中體現了其中的一些證據。

We're at 6.7%, which increased 23 basis points in the quarter, and I think that's a year-to-date rate. So we're seeing the results of that brand awareness and the consumer acceptance. And so we're comfortable that we've got both the flexibility to drive velocities with some of the trade promotion dollars, but also continue to expand the brand awareness through a lot of the marketing initiatives that we employed in the third quarter. And we'll continue to do that in the remaining quarter of the year. And as we move into 2025, we'll give you some color on that period of time when we give our guidance for that period.

我們的利率為 6.7%，本季成長了 23 個基點，我認為這是今年迄今的利率。所以我們看到了品牌知名度和消費者接受度的結果。因此，我們感到滿意的是，我們既可以靈活地利用一些貿易促銷資金來推動速度，又可以透過我們在第三季度採用的許多行銷舉措繼續擴大品牌知名度。我們將在今年剩餘的季度繼續這樣做。當我們進入 2025 年時，當我們給出該時期的指導時，我們將為您提供有關該時期的一些資訊。

Owen Rickert, Northland Capital Markets.

里克‧里克特 (Owen Rickert)，北國資本市場。

Congratulations on another great (inaudible). I guess, quickly, how are you viewing the dollar store end segment and what's your thoughts on the opportunity there? How penetrated are you in that space? And I guess just any more of your thoughts there would be really helpful.

恭喜又一位偉大的人（聽不清楚）。我想，您如何看待一元商店終端市場？你對那個空間的滲透程度如何？我想您的更多想法將會非常有幫助。

Owen, nice to talk to you. Thank you for joining us. This is Carla, and thank you for asking. If you take a look at our investor presentation that's online, you will see that we have a very intentional distribution-based growth strategy underlying our overall long-range plan and our long-range growth model. And on some of those slides, we love to provide you with an update of how we're making progress against that strategy, where we currently have strength and where we see opportunity.

歐文，很高興和你說話。感謝您加入我們。我是卡拉，謝謝您的提問。如果您查看我們的線上投資者演示文稿，您會發現我們有一個非常有意的基於分配的成長策略，這是我們整體長期計劃和長期成長模型的基礎。在其中一些幻燈片中，我們很樂意為您提供有關我們如何在該戰略方面取得進展的最新信息，我們目前在哪些方面擁有優勢以及我們在哪些方面看到了機會。

In this quarter, what we've communicated is our distribution growth of 4% in the quarter overall, following our stores, doors, aisles, shelves facings, distribution growth strategy. We're very pleased with the fact that as our distribution is growing, our velocities are growing at the same time. And so velocities are up 5% at the same time we've been driving distribution growth, which is just such an indicator of the excitement for the brand. To date, we are represented in about 50,000 retail doors overall. That's a little less than half of all the retail doors available across the various retail brick-and-mortar channels that we might think of.

在本季度，我們傳達的是，根據我們的商店、門、過道、貨架飾面、分銷成長策略，我們整個季度的分銷增長了 4%。我們非常高興的是，隨著我們的發行量不斷成長，我們的速度也同時成長。因此，在我們推動分銷成長的同時，速度提高了 5%，這正是該品牌令人興奮的指標。迄今為止，我們的零售店總數約為 50,000 家。這還不到我們可能想到的各種零售實體通路中所有可用零售門的一半。

So we do think that there is enormous runway for us to grow with regard to the opportunity and the places where this brand really makes sense to be. Currently, we don't have any distribution in the dollar channel, which is very compelling. We know that young families shop in that channel and have the same sensitive skin needs that fit in the 70% of households that we know are very focused on the ingredient content of their products. And we look forward to not only being available in more channels than we are today, but making sure that we step our way into all the right channels that will help us continue to drive the awareness and the growth.

因此，我們確實認為，在機會和這個品牌真正有意義的地方方面，我們有巨大的發展空間。目前，我們在美元通路沒有任何分銷，這是非常引人注目的。我們知道，年輕家庭在該通路購物，並且具有與 70% 的家庭相同的敏感肌膚需求，我們知道這些家庭非常注重產品的成分含量。我們不僅期待比現在更多的管道提供服務，而且確保我們進入所有正確的管道，這將有助於我們繼續提高知名度和成長。

Great. That was very helpful. And then secondly, could you provide some more color on some of those new marketing initiatives that were discussed on the previous earnings call? What worked well in the quarter? And maybe what should we be keeping our eyes on for 4Q?

偉大的。這非常有幫助。其次，您能否為之前的財報電話會議上討論的一些新的行銷舉措提供更多資訊？本季哪些方面表現良好？也許第四季我們應該關注什麼？

Yes. Well, I think overall, we've got just a world-class marketing team on the brand here that it has been improving the effectiveness of not only what the marketing does, but exactly where we spend it and our balance of upper, middle and lower funnel activities. So some of our marketing is used in partnership directly with our retailers. We had great strength, as Dave reported, in both Prime Days and Target Circle Week in the quarter with very strong double-digit growth rates across all of those retailers. And you may remember that on the call, we also addressed the fact that in the most recent Amazon Prime Day, one of our boxes wipes our 720 count, wipes box was among the top 100 items across all of Prime Day, whether that's Dyson vacuum cleaners or Nike ankle socks or whatever it is you might buy our wipes boxes in the top 100 performing deals.

是的。嗯，我認為總的來說，我們在這裡擁有一支世界一流的品牌行銷團隊，它不僅提高了行銷的有效性，而且提高了我們的行銷效果以及上、中、下層之間的平衡。漏斗活動。因此，我們的一些行銷活動是與我們的零售商直接合作使用的。正如 Dave 所報導的那樣，我們在本季度的 Prime Days 和 Target Circle Week 中都擁有強大的實力，所有這些零售商都實現了非常強勁的兩位數增長率。您可能還記得，在電話會議中，我們還提到了這樣一個事實，即在最近的亞馬遜Prime Day 中，我們的一個盒子擦拭了720 片，擦拭巾盒是整個Prime Day 中排名前100 的商品之一，無論是戴森吸塵器清潔劑或耐克踝襪或任何東西，您可能會在前 100 名促銷中購買我們的濕巾盒。

That's because we've got a really strong sense of how to use our marketing dollars to plug into our retailer-specific tent pole items. In addition to that, the team had several campaigns that they executed across the various forms of consumer media. We have some campaigns that are strongly aligned with our sensitive skin benefit. So we ran a campaign this quarter called the Skin to Skin Campaign. We're seeing very strong results.

這是因為我們對於如何利用我們的行銷資金來插入我們的零售商特定的帳篷桿產品有著非常強烈的意識。除此之外，該團隊還透過各種形式的消費者媒體開展了幾項活動。我們有一些與我們的敏感皮膚益處密切相關的活動。因此，我們本季開展了一項名為「皮膚接觸運動」的活動。我們看到了非常強勁的結果。

That campaign was actually able to feature a variety of products across our portfolio, all with one common thread that they are good and trustworthy for sensitive skin. What you will see from us will continue to be a balance of doing both events that are really focused on amplifying our execution with our retailers, along with a complementary set of marketing activities that are really bigger, larger consumer-focused initiatives to share with people the benefits and the portfolio variety within Honest.

該活動實際上能夠展示我們產品組合中的各種產品，所有產品都有一個共同點，即它們對敏感皮膚來說是良好且值得信賴的。您將從我們身上看到的將繼續是兩方面的平衡：一方面是真正專注於增強我們與零售商的執行力的活動，另一方面是一系列互補的營銷活動，這些活動是真正規模更大、以消費者為中心的舉措，旨在與人們分享Honest 的優勢和產品組合的多樣性。

Dara Messinian, Morgan Stanley.

達拉·梅西尼安，摩根士丹利。

So Carla, I was just hoping you could take a step back now that we're three quarters through the year. The strong consumption trends we've seen in both tracked channels and digital, how sustainable is that as we look out to 2025 and beyond? You just touched on some of the marketing success and just how you think about sustainability going forward from here? And then just a similar question on gross margins, the 37% to 38% range for the full year. Is that a sustainable level going forward?

卡拉，我只是希望你能退後一步，現在已經過了四分之三。我們在追蹤通路和數位管道中看到的強勁消費趨勢，展望 2025 年及以後的可持續性如何？您剛剛談到了一些行銷成功以及您如何看待今後的永續發展？然後是關於毛利率的類似問題，全年毛利率範圍為 37% 至 38%。這是未來可持續的水平嗎？

Are there any key puts and takes as you look beyond this year longer term?

從今年的長遠來看，您是否有任何關鍵的看跌期權和看跌期權？

Sure. Dara, it's really great to hear you today. So thank you for joining the call. To talk about consumption, I would remind everyone that the overall consumption in the MULO Track channel data was up 9% in the quarter, and that consumption was complemented by our consumption for the quarter on Amazon of 19% up year-over-year. Together, that blend is really a such strong indication of the way in which the velocities are working as well as the increased scale of household penetration.

當然。達拉，今天很高興聽到你的聲音。感謝您加入此通話。說到消費，我想提醒大家的是，MULO Track 通路數據中的整體消費在本季度增長了 9%，而我們在亞馬遜上的本季度消費同比增長了 19%，補充了這一消費。總之，這種混合確實有力地顯示了速度的作用方式以及家庭滲透率的增加。

Dave just recapped that we've grown household penetration year-to-date. We're now at 6.7% household penetration, which is an increase of 23 basis points of our household penetration. Those are great measures that really point us towards the fact that consumption has a strong underlying basis. What I also like to look at, Dara, when I try to think about the sustainability of consumption is what are some of the elements that are driving that consumption? Are we seeing it on price?

戴夫剛剛回顧說，今年迄今為止，我們的家庭滲透率有所提高。我們現在的家庭滲透率為 6.7%，比家庭滲透率增加了 23 個基點。這些都是很好的措施，真正讓我們認識到消費具有強大的基礎。達拉，當我嘗試思考消費的可持續性時，我還想看看推動消費的一些因素是什麼？我們在價格上看到了嗎？

Are we seeing it on units? This consumption that we've experienced and over all of the recent quarters that I've been talking to you has been really balanced and very strong. So our consumption has driven 5% unit growth consumption increase and 4% price increase. That is not during a period where we've done price advance, so to speak, because we've actually lapped almost all of our price advances in market. That's a demonstration that people are actually buying larger basket sizes of Honest per transaction or larger items from us when they are buying transactions with Honest.

我們在單位上看到它嗎？我們經歷過的這種消費以及我與你們談論的最近幾季的消費確實非常平衡且非常強勁。所以我們的消費拉動了5%的單位消費成長和4%的物價上漲。可以這麼說，這並不是我們進行價格上漲的時期，因為我們實際上已經超越了市場上幾乎所有的價格上漲。這表明，人們在透過 Honest 購買交易時，每次交易實際上會購買更大籃子的 Honest 商品，或從我們這裡購買更大的商品。

Additionally that I look for is our repeat rates and our overall drivers of consumption and loyalty and our repeat has also grown in the quarter. So all of those indicators tell me that we have consumer fundamentals that are highly aligned with the products we offer and the benefits they serve. Of course, I can't speak specifically about what consumption will do on any future basis. But I would say when I look at the indicators and the fundamental drivers of consumption, I feel very great about what that tells me about the alignment we have with our retail partners and our consumers.

此外，我還關注我們的重複率以及消費和忠誠度的整體驅動因素，並且我們的重複率在本季度也有所增長。因此，所有這些指標都告訴我，我們的消費者基本面與我們提供的產品及其所帶來的好處高度一致。當然，我無法具體談論消費在未來會發生什麼。但我想說，當我查看消費的指標和基本驅動因素時，我對它告訴我的關於我們與零售合作夥伴和消費者的一致性感到非常滿意。

Dara, I'd be happy to kind of touch on the gross margin sustainability question that you had there, too. As we see the improvement that we've made year-to-date, a little over 1,000 basis points, pretty significant with the combination of both product cost savings and supply chain fulfillment savings. Those are sustainable and they're structural. And when we think about what's going to support kind of the level that we're at now and even longer term continuing to expand it. What we know is that we've got the right opportunity to continue to see some cost structural improvements in our product set.

達拉，我也很樂意談談您在那裡提出的毛利率可持續性問題。正如我們所見，我們今年迄今取得的進步略多於 1,000 個基點，結合產品成本節省和供應鏈履行節省而言，這是相當顯著的。這些是可持續的，而且是結構性的。當我們考慮什麼將支持我們現在所處的水平，甚至從長遠來看繼續擴大它。我們所知道的是，我們有合適的機會繼續看到我們的產品組合中的一些成本結構改進。

Our teams are continuously aggressively going after that across our sourcing network. And as we leverage with sales growth, some of the supply chain opportunity improvements will be there that sees benefit from revenue growth. And then lastly, I'd say, as you can see where some of the highlights of our portfolio is seeing the most traction, it's in margin categories that are beneficial to the overall picture. And so over time, a mix of portfolio based on higher-margin profitability is what's also going to be part of the equation. And that's a core tenet of how we know the long-term margin expansion will play out for us.

我們的團隊在我們的採購網絡中不斷積極地追求這一目標。當我們利用銷售成長時，一些供應鏈機會的改善將會從收入成長中受益。最後，我想說，正如您所看到的，我們投資組合中的一些亮點最受關注，這是對整體情況有利的保證金類別。因此，隨著時間的推移，基於更高利潤率的投資組合也將成為方程式的一部分。這是我們如何知道長期利潤擴張將為我們帶來好處的核心原則。

But hopefully, that supports your question.

但希望這能支持你的問題。

Anna Glaessgen, B Riley Securities.

安娜·格拉斯根 (Anna Glaessgen)，B 賴利證券。

I'd love to start on the Amazon Prime Day and historically, its efficacy as a tool to reach new consumers. Or do you generally see that as existing customers who are just buying in bulk and taking advantage of the discounts and the ability to convert those new customers to DTC customers?

我很想從亞馬遜 Prime Day 開始，從歷史上看，它作為接觸新消費者的工具的功效。或者您普遍認為現有客戶只是大量購買並利用折扣以及將這些新客戶轉化為 DTC 客戶的能力？

Anna, this is Carla. Nice to talk to you. We know from our Amazon purchase behavior that we actually track each quarter to what degree are we getting new-to-brand shoppers. And I don't know the number in this quarter specifically. But I think when we were with you all last quarter, we reported that we quadrupled new-to-brand first-time shoppers on Amazon in the quarter.

安娜，這是卡拉。很高興和你說話。我們從亞馬遜的購買行為中得知，我們實際上每季都會追蹤新品牌購物者的吸引程度。我不知道這個季度的具體數字。但我想，當我們上個季度與大家在一起時，我們報告說，本季亞馬遜上的新品牌首次購物者數量增加了四倍。

So in general, what we find with Prime Day is that Prime Day is definitely a balance of replenishment shoppers who are already very loyal and love the brand. But as our algorithm and our set of products work so powerfully in the Amazon ecosystem, we are also able to really gain new households who are doing search word, searches for maybe a product category and haven't yet decided which brands they want. And as we perform strongly, we rate higher up in those searches. And so that brings greater brand awareness and greater trial on the Amazon ecosystem. I know some of the analysts on the call today are aware that I used to run these categories at Amazon.

所以總的來說，我們對 Prime Day 的發現是，Prime Day 絕對是已經非常忠誠並且熱愛該品牌的補貨購物者的平衡點。但由於我們的演算法和我們的產品集在亞馬遜生態系統中發揮著如此強大的作用，我們也能夠真正吸引新的家庭，他們正在搜尋單詞，搜尋可能的產品類別，但尚未決定他們想要哪個品牌。當我們表現強勁時，我們在這些搜尋中的評分就會更高。因此，這會帶來更高的品牌知名度和對亞馬遜生態系統的更多嘗試。我知道今天參加電話會議的一些分析師都知道我曾經在亞馬遜負責這些類別的工作。

So I was the Vice President of Consumables categories for two years at Amazon. Our team not only maintains strong relationships with many of the leaders of those categories over Amazon. But as we do our business planning, we love to be highly integrated with them on making sure we deploy the right investments that unlock the ability to grow together, and we're very pleased with how that growth has gone.

因此，我在亞馬遜擔任了兩年消費品類別副總裁。我們的團隊不僅與亞馬遜上這些類別的許多領導者保持著牢固的關係。但當我們進行業務規劃時，我們喜歡與他們高度整合，以確保我們部署正確的投資，釋放共同成長的能力，我們對這種成長的進展感到非常滿意。

And I'd like to shift to a topic that's very popular right now, assessing potential exposure to China sourcing. I believe you are limited to sourcing wipes from China, which would be roughly less than 20% of sales, but any update there would be great.

我想轉向一個現在非常流行的話題，評估中國採購的潛在風險。我相信您只能從中國購買濕紙巾，這大約佔銷售額的 20% 以下，但任何更新都會很棒。

Yes. Sure, Anna. That is a topical issue these days, and we've been actually monitoring it for quite a while ourselves. You're right, our wipes portfolio is sourced in China. And so our team has been actively working with our supplier for quite a while on the topic of tariffs and really cost efficiencies.

是的。當然，安娜。這是最近的一個熱門問題，我們自己實際上已經對其進行了相當長的一段時間的監控。您是對的，我們的濕紙巾產品組合源自中國。因此，我們的團隊長期以來一直在與供應商就關稅和實際成本效率問題積極合作。

And so as we think about how -- not knowing what the level or the timing of new tariffs may come down within China, we've already been working on plans to consider diversification, working on plans around cost reductions within that product set. And so we're prepared for what the uncertainty might bring us, but we're not clear as to the timing and the level that it's going to play out along with anyone else. Thankfully, we do have a nimble sourcing organization, and we are not heavily concentrated in that part of the world. So I think we've got a portfolio that balances across our sourcing domestically and internationally and will allow us to continue to maintain the gross margin levels that we expect and continue to build on that. So we're prepared.

因此，當我們考慮如何 - 不知道中國境內新關稅的水平或時間可能會下降時，我們已經在製定考慮多元化的計劃，並圍繞該產品系列內的成本削減制定計劃。因此，我們已經做好了應對不確定性可能會為我們帶來什麼的準備，但我們不清楚它會與其他人一起發生的時間和程度。值得慶幸的是，我們確實擁有靈活的採購組織，而且我們並沒有高度集中在世界的那個地區。因此，我認為我們擁有一個平衡國內和國際採購的投資組合，這將使我們能夠繼續維持我們預期的毛利率水平，並在此基礎上繼續發展。所以我們已經準備好了。

Laura Champine, Loop.

勞拉‧尚平，《循環》。

So the gross margin gains have been obviously substantial. How much of a lift are you getting there from the price mix benefits that you're seeing? And if you can quantify that as a percentage lift to sales in Q3 on that 15%, that would be great.

因此，毛利率的成長顯然是可觀的。您所看到的價格組合優勢對您的實現有多大提升？如果你能將其量化為第三季銷售額在 15% 基礎上的提升百分比，那就太好了。

Yes. Sure, Laura. Within the quarter, and you're right, the lift was quite notable as we see our 38.7% gross margin is really an all-time high for us and tracks over last year, over 700 basis points. We don't see that, that's really letting up in terms of pricing being the driving factor there. In fact, we know that it's almost entirely made up of both the cost savings on product and fulfillment and supply chain savings that are in place for us ongoing.

是的。當然，勞拉。在本季度內，您是對的，成長非常顯著，因為我們看到 38.7% 的毛利率確實是我們的歷史新高，並且比去年高出 700 個基點。我們沒有看到這一點，定價作為驅動因素確實在減弱。事實上，我們知道，這幾乎完全由我們正在進行的產品和履行成本節約以及供應鏈成本節約組成。

The pricing that we did take in 2023, we've largely lapped all of that price increase. And so by the third quarter of this year, it was a very small amount that you could attribute to pricing or mix of higher-priced product in terms of our booked gross margin. But I think what we did call out, and Carla noted this, too, once the product is in the retailer hands and the consumers are buying it, they're buying at a higher price point and we're seeing growth on units and the average. So it's a mix factor that's out there. But in terms of our gross margin rate, it was, for the most part, all cost savings and structural improvements.

我們在 2023 年採取的定價基本上已經接受了所有價格上漲。因此，到今年第三季度，就我們的預訂毛利率而言，您可以將其歸因於定價或高價產品組合的金額非常小。但我認為我們確實呼籲了這一點，卡拉也指出了這一點，一旦產品到達零售商手中並且消費者購買它，他們就會以更高的價格購買，我們看到單位和數量的增長平均的。所以這是一個混合因素。但就我們的毛利率而言，大部分都是成本節約和結構改進。

Got it. And then a quick follow-up on the tariff question. I hear you that you're preparing for it. But given that you're sourcing one of your highest growth categories out of China, we're just a little worried about the wipe side. How quickly could you shift production?

知道了。然後是關稅問題的快速跟進。我聽說你正在為此做準備。但考慮到你們從中國採購成長最快的類別之一，我們只是有點擔心擦拭方面。您能多快轉移生產？

And how comfortable would you be raising prices to offset any increase in cost that's tariff related?

您是否願意提高價格來抵銷與關稅相關的成本增加？

Well, we know that there will take some time for any implemented tariffs to put into place and how that would materialize in our cost structure, just given the lead times on our inventory flow and I don't really expect it's going to be a material impact in 2025. But what we do see is that the flexibility we have on sourcing is something that we're already well underway of working on with our supplier, looking at other countries of origin, other supply locations and also actively looking at cost reductions in the wipes product itself. So that's -- I'd say, more to come, but we're actively on this topic.

好吧，我們知道，任何實施的關稅都需要一些時間才能落實到位，以及如何在我們的成本結構中實現，僅考慮到我們庫存流的交貨時間，我真的不認為這會成為一種材料2025 年的影響。本身。所以，我想說，還會有更多內容，但我們正在積極討論這個主題。

Should we expect inventory to build a bit through year-end as you build safety stock there?

當您在那裡建立安全庫存時，我們是否應該預期庫存會在年底增加？

Well, we'll make a call on that as we get closer to the lead times necessary and if we've got any guidance on the state of implementing tariffs in certain parts of the world, but not at the risk of over-inventorying our position. I mean we'll be very prudent, but we'll also take the appropriate action to build if necessary to avoid some known costs. But today, those aren't known.

好吧，當我們接近必要的交貨時間時，如果我們有關於在世界某些地區實施關稅的情況的任何指導，我們將對此做出呼籲，但不會冒著庫存過多的風險位置。我的意思是，我們會非常謹慎，但如有必要，我們也會採取適當的行動來進行建設，以避免一些已知的成本。但今天，這些都不為人所知。

I would now like to turn the call back to Carla Vernon for closing remarks.

現在我想將電話轉回給卡拉·弗農（Carla Vernon），讓其致閉幕詞。

Thanks, everyone, for joining us today. It was a pleasure speaking with you and sharing our third quarter results. We look forward to speaking with many of you at some of our upcoming investor events. And the rest of you will see you next quarter.

謝謝大家今天加入我們。很高興與您交談並分享我們第三季的業績。我們期待在即將舉行的一些投資者活動中與你們中的許多人交談。你們其他人將在下個季度再見。

This does conclude today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。