Honest Company Inc (HNST) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to The Honest Company's first-quarter 2025 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 The Honest Company 2025 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference call over to Ms. Elizabeth Bouchard, Senior Director, Investor Relations at The Honest Company. Please go ahead.

現在，我想將電話會議交給 The Honest Company 投資者關係高級總監 Elizabeth Bouchard 女士。請繼續。

Good afternoon, everyone. Thank you for joining our First Quarter 2025 Conference Call. Joining me today are Carla Vernon, our Chief Executive Officer; and Dave Loretta, our Chief Financial Officer.

大家下午好。感謝您參加我們的 2025 年第一季電話會議。今天與我一起的還有我們的執行長卡拉·弗農 (Carla Vernon) 和我們的財務長戴夫·洛雷塔 (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. 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.

在我們開始之前，我想提醒您，我們今天將做出一些符合聯邦證券法含義的前瞻性聲明，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提及的其他事項。這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果大不相同。請參閱我們今天發布的收益報告以及我們向美國證券交易委員會提交的文件，以獲得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觀點，除非法律要求，否則我們不承擔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訂結果的義務。

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 today. A live broadcast of this call is also available on our Investor Relations section of our website at investors.honest.com.

此外，在本次電話會議中，我們將討論非公認會計準則財務指標，這些指標將調整我們的公認會計準則結果以消除某些項目的影響。您將在今天的收益報告的財務結果部分中找到有關這些非 GAAP 財務指標的更多資訊以及這些非 GAAP 指標與 GAAP 指標的對帳表。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（網址：investors.honest.com）上觀看。

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

說完這些，我將把電話轉給卡拉。

Thanks, Elizabeth. Good afternoon, everyone, and thank you for joining us today. As I begin today's remarks, I'd like to take a moment to share some important updates to our recent announcement of Dave Loretta's planned retirement from his role as the Chief Financial Officer of The Honest Company.

謝謝，伊麗莎白。大家下午好，感謝大家今天的參與。在我開始今天的演講之前，我想花點時間分享一些重要的更新，關於我們最近宣布的戴夫·洛雷塔 (Dave Loretta) 計劃從誠實公司 (The Honest Company) 首席財務官一職退休的消息。

Most importantly, I want to recognize Dave for his incredible partnership. Thanks to Dave's leadership, we have an exceptional finance team in place, a stronger financial foundation and are well positioned for the future. Dave, thank you for playing such a critical role in the transformation of Honest, and congratulations on the considerable success you have had at Honest and across your career.

最重要的是，我要表揚戴夫出色的合作精神。感謝戴夫的領導，我們擁有一支出色的財務團隊、更強大的財務基礎，為未來做好了準備。戴夫，感謝您在 Honest 的轉型中發揮瞭如此重要的作用，並祝賀您在 Honest 和整個職業生涯中取得的巨大成功。

Earlier today, we announced the appointment of Curtiss Bruce as The Honest Company's next Chief Financial Officer. Curtiss is an accomplished financial leader with deep expertise across some of the most respected consumer brands, including Hain Celestial, Keurig Dr Pepper, the Kellogg Company and Kraft Heinz. Across his career, Curtiss has led a blend of both emerging businesses as well as some of the food industry's most iconic billion-dollar brands.

今天早些時候，我們宣布任命柯蒂斯布魯斯 (Curtiss Bruce) 為 The Honest Company 的下一任財務長。柯蒂斯是一位成就卓著的金融領袖，在一些最受尊敬的消費品牌方面擁有深厚的專業知識，包括 Hain Celestial、Keurig Dr Pepper、家樂氏公司和卡夫亨氏。在他的職業生涯中，柯蒂斯領導過許多新興企業以及食品業一些最具代表性的價值數十億美元的品牌。

His passion for consumer-loved brands, combined with a track record of driving growth and transformation, make him the right leader to help guide Honest into the next chapter. Curtiss' June 2 start date will include ample transition time with Dave to allow for a smooth handoff. Again, I want to extend my sincere thanks and congratulations to Dave for all he has done to drive our strong results.

他對消費者喜愛品牌的熱情，加上推動成長和轉型的良好記錄，使他成為幫助 Honest 邁向下一篇章的合適領導者。柯蒂斯將於 6 月 2 日開始工作，屆時將有充足的時間與戴夫進行過渡，以確保順利交接。再次，我要向戴夫表達最誠摯的感謝和祝賀，感謝他為推動我們取得強勁業績所做的一切。

For today's call, there are three messages I want to share with you. First, we delivered solid results for the first quarter of the year with double-digit revenue growth, gross margin expansion and positive operating income. Second, our transformation pillars of brand maximization, margin enhancement and operating discipline are enabling us to successfully navigate this dynamic environment. With a healthy balance sheet and growing consumer demand for our cleanly formulated and sustainably designed products, we remain confident that our long-term growth strategy leaves us well positioned to scale the Honest brand. And third, as we continue to adapt to the evolving market conditions and manage the impact of economic headwinds, we are reaffirming our 2025 financial outlook.

在今天的電話會議上，我想與大家分享三個資訊。首先，我們今年第一季取得了穩健的業績，營收實現兩位數成長，毛利率擴大，營業收入為正。其次，我們的轉型支柱——品牌最大化、利潤率提升和營運紀律——使我們能夠成功駕馭這一動態環境。憑藉健康的資產負債表和不斷增長的消費者對我們配方清潔、設計可持續的產品的需求，我們仍然相信，我們的長期成長策略將使我們處於有利地位，能夠擴大誠實品牌的規模。第三，隨著我們繼續適應不斷變化的市場條件並應對經濟逆風的影響，我們重申了 2025 年的財務展望。

For the first quarter, our teams continued to strengthen the business model and in-market performance of The Honest Company. We delivered growth across our key financial measures, including revenue of $97 million, which was 13% growth year-over-year. Our gross margin grew 170 basis points to 39%. Additionally, we delivered positive net income of $3 million and adjusted EBITDA margin of 7%, representing our sixth consecutive quarter of positive adjusted EBITDA.

第一季度，我們的團隊持續加強誠實公司的商業模式和市場表現。我們的主要財務指標均實現了成長，其中營收達到 9,700 萬美元，年增 13%。我們的毛利率成長了170個基點，達到39%。此外，我們實現了 300 萬美元的正淨收入和 7% 的調整後 EBITDA 利潤率，這是我們連續第六個季度實現正調整後 EBITDA。

We are particularly proud of these results amid the dynamic environment of both cost and consumer demand uncertainty. The strength of these results is grounded in our transformation pillars, which were designed for their enduring ability to guide us through both short and long-term periods. Our first foundational pillar, brand maximization, is inspired by the growth vision we have for the Honest brand across our trusted portfolio of baby and personal care products.

在成本和消費者需求都不確定的動態環境中，我們對這些成果感到特別自豪。這些成果的優勢在於我們的轉型支柱，這些支柱旨在持久地引導我們度過短期和長期時期。我們的第一個基礎支柱是品牌最大化，其靈感來自於我們對誠實品牌在我們值得信賴的嬰兒和個人護理產品組合中的成長願景。

Our portfolio of cleanly formulated sustainably designed products continues to meet everyday essential consumer needs, especially for those with sensitive skin. With consumption growth of 8% in the quarter, the Honest brand continues to deliver growth that outpaces the growth of our competitive categories, which declined 1% in the same period. Our growth underscores our focus on bringing new shoppers into the Honest portfolio as demonstrated by the increases in our household penetration to 7.3%, a growth of 55 basis points versus the prior year.

我們的清潔配方、永續設計的產品組合能夠持續滿足消費者的日常基本需求，特別是敏感肌膚消費者的需求。本季度，Honest 品牌的消費量成長了 8%，其成長速度持續超過我們競爭類別的成長速度，而競爭類別同期的消費量下降了 1%。我們的成長凸顯了我們致力於為誠實投資組合吸引新購物者的重點，這從我們家庭滲透率的增長至 7.3% 可以看出，比上一年增長了 55 個基點。

Two bright spots in our brand maximization performance for the quarter are our wipes portfolio and our baby personal care collection. Both of these businesses benefit from the growing interest in products that are effective, safe for a broad range of uses and gentle [unsensitive] skin. For many consumers, products that work well for sensitive skin aren't just preferences. They have become essential. Because of our rigorous product standards, our community has come to trust our commitment to having products that meet their most sensitive skin needs.

本季我們品牌最大化表現的兩個亮點是我們的濕紙巾產品組合和嬰兒個人護理系列。這兩家公司都受益於人們對有效、安全、用途廣泛且溫和（不敏感）皮膚的產品日益增長的興趣。對許多消費者來說，適合敏感肌膚的產品不僅僅是偏好。它們已經變得至關重要。由於我們嚴格的產品標準，我們的社區開始相信我們致力於提供滿足他們最敏感的皮膚需求的產品。

The Honest standard is our set of guiding principles that contains our NO List. The NO List defines 3,500 ingredients of concern that we choose not to use in our products. As evidenced by increases in our household penetration, our buy rate, which grew 8% and our repeat usage, which grew more than 200 basis points, our Honest products are more than essential. They are beloved by our community. We know that the sensitive skin segment is expected to double to $80 billion by 2030 and skin allergies among children have increased 100% since 1997. In fact, this quarter, our Sensitive Skin portfolio grew 35% year-over-year, benefiting from the launch of our larger sizes of sensitive skin shampoo and body wash and sensitive skin conditioning detangler.

誠實標準是我們的一套指導原則，其中包含我們的「拒絕清單」。否清單列出了 3,500 種我們選擇不在我們的產品中使用的令人擔憂的成分。我們的家庭滲透率不斷提高，購買率增加了 8%，重複使用率增加了 200 多個基點，這些都表明我們的誠實產品至關重要。他們深受我們社區的喜愛。我們知道，到 2030 年，敏感性皮膚市場的規模預計將翻一番，達到 800 億美元，而自 1997 年以來，兒童皮膚過敏的發生率增加了 100%。事實上，本季度，我們的敏感肌膚產品組合年增 35%，這得益於我們推出更大尺寸的敏感肌膚洗髮精和沐浴露以及敏感肌膚調理順髮劑。

In addition to our Sensitive Skin portfolio growth, across our wipes portfolio, we delivered consumption growth of over 40% this quarter. Our successful growth in wipes is driven by distribution gains, expanded size offerings, in-store merchandising and consumer-driven design improvements. We have seen increasing demand for our 288-count wipes package, which more than doubled in distribution over the past two years. This size provides great value to our most loyal users, and we see that the more wipes consumers have in their homes, the more ways they find to use them.

除了敏感肌膚產品組合的成長外，本季我們的濕紙巾產品組合的消費量也成長了 40% 以上。我們的濕紙巾業務的成功成長得益於分銷收益、擴大尺寸供應、店內行銷和消費者驅動的設計改進。我們發現市場對 288 片裝濕紙巾的需求不斷增長，過去兩年內其銷售量增加了一倍以上。這種尺寸為我們最忠實的用戶提供了巨大的價值，我們發現消費者家中的濕紙巾越多，他們找到的使用方法就越多。

As a digitally native brand with a strong omnichannel strategy, we believe in the power and scale of being represented both in-store and online. In March, our sanitizing wipes launched for the first time on walmart.com, and our pocket and purse-friendly sanitizing sprays have been added to the on-the-go travel section at Target stores nationally. We also continue to expand the availability of Honest wipes into new aisles of the store, including the potty training aisle. Our toddler flushable wipes are the perfect solution for those moments when messes meet milestones.

作為擁有強大全通路策略的數位原生品牌，我們相信店內和線上展示的力量和規模。3 月份，我們的消毒濕紙巾首次在 walmart.com 上推出，而我們便於攜帶的消毒噴霧劑已在全國 Target 商店的隨身旅行區推出。我們也將繼續擴大 Honest 濕紙巾在店內新貨架的供應範圍，包括如廁訓練貨架。我們的幼兒可沖洗濕紙巾是解決髒亂問題的完美解決方案。

With the addition of pop-out displays called jump shelves, our toddler flushable wipes are conveniently placed for when parents are shopping for potty training essentials. For our Honest community, it is also important that our products come to life beautifully in their homes. Our recently launched adult flushable wipes now come in a new pattern we call gold gilded wings, and it's gorgeous. They make the perfect finishing touch to give bathrooms and powder rooms an elevated style. Our community has come to love the combination we bring of gentle products that work beautifully and have a style to match. As a result, Honest is now the leading natural wipes brand nationally, surpassing the category's previous leader.

透過添加彈出式展示架（稱為跳架），當父母購買如廁訓練必需品時，我們的幼兒可沖洗濕紙巾可以方便地放置。對於我們的誠實社區來說，讓我們的產品在他們的家中完美呈現也很重要。我們最近推出的成人可沖洗濕巾現在採用了一種我們稱為鍍金翅膀的新圖案，非常華麗。它們是完美的點睛之筆，為浴室和化妝間增添了優雅的風格。我們的社區已經愛上了我們帶來的這些溫和的產品組合，它們性能優良，風格也與之相配。因此，Honest 現已成為全國領先的天然濕紙巾品牌，超越了該類別先前的領導者。

As I mentioned, as consumers seek out clean solutions for their essential needs, we continue to see our consumption outpace our competitive categories. However, along with a modest slowdown in the categories in which we compete, we observed some headwinds in our own momentum as we exited the quarter. Most notably, we saw these headwinds in our diaper portfolio. This is mainly attributable to an expected diaper distribution change that took place at a key retailer in Q1.

正如我所提到的，隨著消費者尋求清潔解決方案來滿足其基本需求，我們繼續看到我們的消費超過我們的競爭類別。然而，隨著我們競爭類別的成長略有放緩，我們在退出本季時也發現自身的發展動能遇到了一些阻力。最值得注意的是，我們在尿布產品組合中看到了這些阻力。這主要歸因於第一季一家主要零售商的尿布分銷預期發生了變化。

We also recognize that a regular cadence of technology improvements is vital in the diaper category. That's why we continuously monitor consumer feedback and understand the needs for innovation. Our diaper research confirmed that while we perform well in key areas, including our cleanly formulated materials that are gentle on baby and our signature prints. There were key technical features identified for improvement. After extensive development work and technical research, I'm pleased to share that our team of diaper engineers has developed our best built diaper yet.

我們也認識到，定期進行技術改進對於尿布類別至關重要。這就是我們不斷監控消費者回饋並了解創新需求的原因。我們的尿布研究證實，我們在關鍵領域表現良好，包括我們採用對嬰兒溫和的清潔配方材料和我們的標誌性印花。已確定需要改進的關鍵技術特性。經過大量的開發工作和技術研究，我很高興地告訴大家，我們的尿布工程師團隊已經開發出迄今為止最好的尿布。

In fact, I recently had the chance to visit our diaper manufacturing headquarters and saw firsthand how we were able to achieve such great results in our newest diaper. I had the pleasure of performing the absorbency test myself. As I poured the blue liquid onto the new and improved core of our diaper, the liquid was absorbed within seconds, leaving the surface practically dry to the touch.

事實上，我最近有機會參觀我們的尿布製造總部，親眼目睹了我們如何在最新的尿布中取得如此出色的成果。我很高興親自進行吸收性測試。當我將藍色液體倒入我們新改進的尿布芯上時，液體在幾秒鐘內就被吸收了，使表面摸起來幾乎是乾的。

Our new and improved diaper, which has recently started shipping into stores and online, guarantees up to 100% leak protection with comfort dry technology and was thoughtfully designed to protect delicate skin. It also features a plant-based liner designed to be gentle on baby skin, a breathable outer layer that helps reduce the risk of irritation, fastener tab improvements for an irritation-free fit and softer materials that make the diaper soft to a parent's touch. With these improvements, we are proud to bring our best diaper ever to the littlest members of our honest community.

我們全新改良的尿布最近已開始在商店和網上發售，採用舒適乾燥技術，可保證高達 100% 的防漏，並且經過精心設計，可保護嬌嫩的皮膚。它還具有一種植物性內襯，設計用於溫和地呵護嬰兒的皮膚，透氣的外層有助於減少刺激的風險，緊固件拉環的改進可實現無刺激的貼合，以及使尿佈在父母的觸感下更柔軟的材質。透過這些改進，我們很自豪能夠為我們誠實社區的最小成員提供最好的尿布。

The second pillar we focus on after brand maximization is margin enhancement. In Q1, with a gross margin of 39%, an expansion of 170 basis points, we continue to grow the bottom line faster than the top line through cost savings and changes to product mix. Just as we are closely watching the consumer environment, we are also watching and managing the cost environment, particularly related to tariffs. Based on currently announced tariffs, our greatest exposure is related to our imports from China. However, even with the additional tariff-related headwinds that were subsequent to our Q4 earnings call, our disciplined execution and progress on our margin enhancement pillar enables us to reaffirm our financial outlook today.

品牌最大化之後我們關注的第二個支柱是利潤率的提升。第一季度，我們的毛利率為 39%，擴大了 170 個基點，透過節省成本和改變產品組合，我們的利潤成長速度持續快於營收成長速度。正如我們密切關註消費環境一樣，我們也關注和管理成本環境，特別是與關稅相關的成本環境。根據目前公佈的關稅，我們最大的風險敞口與從中國的進口有關。然而，即使在第四季度收益電話會議之後出現了與關稅相關的額外不利因素，我們的嚴格執行和在提高利潤率支柱方面的進展使我們能夠重申今天的財務前景。

As we shared in Q4 earnings, our Honest teams are not new to managing the impact of tariffs on a global supply chain and on our financial model. We have been managing tariffs in portions of our portfolio across several administrations. We have a comprehensive approach in place and a strong experienced cross-functional team that we lovingly call the tariff tacklers. This team oversees a three-pronged strategy to drive our tariff mitigation efforts. These prongs include: first, building an annual plan that is agile in the face of tariffs; second, implementing an inventory management strategy to delay tariff impact; and third, working closely with our internal teams and external partners to drive additional cost savings and spending optimization.

正如我們在第四季度收益中所分享的，我們的誠實團隊對管理關稅對全球供應鏈和我們的財務模型的影響並不陌生。我們已在多個政府部門內管理部分投資組合的關稅。我們擁有全面的措施和一支經驗豐富的跨職能團隊，我們親切地稱之為「關稅攻堅者」。該團隊負責監督三管齊下的策略，以推動我們的關稅減免工作。這些措施包括：首先，制定應對關稅的年度計劃；其次，實施庫存管理策略以延緩關稅影響；第三，與我們的內部團隊和外部合作夥伴密切合作，以推動額外的成本節約和支出優化。

The high-frequency cadence and collaborative approach of our tariff tackler team allows them to continuously evaluate and prepare short and long-term levers. Because of our three-pronged strategy, our team acted quickly to increase inventory on hand, allowing us to delay the impact of incremental tariffs to the back half of the year. The addition of senior supply chain leadership to our management team, coupled with our strong history of collaboration with our suppliers, has enabled us to identify cost savings we can address together and helped us accelerate the timing on some cost savings initiatives. And guided by the third prong, we optimized our investment spending to reduce waste, drive higher returns and amplify our highest strategic priorities.

我們的關稅應對團隊的高頻率節奏和協作方式使他們能夠不斷評估和準備短期和長期槓桿。由於我們採取了三管齊下的策略，我們的團隊迅速採取行動，增加了庫存，使我們能夠將增量關稅的影響推遲到下半年。我們的管理團隊增加了高階供應鏈領導，再加上我們與供應商的良好合作歷史，使我們能夠確定可以共同解決的成本節約問題，並幫助我們加快了一些成本節約計劃的實施時間。在第三個方面的指導下，我們優化了投資支出，以減少浪費、提高回報並擴大我們的最高策略重點。

Our operating discipline pillar is our third and final transformation pillar. Operating discipline underscores our focus on building a culture of executional excellence. In the first quarter, we launched two improvements to our operating approach to better enable our teams to execute with excellence. Modeled after the practices of best-in-class consumer products companies, our business teams are operating with an improved cross-functional model, which drives process rigor and ensures that we are aligned to deliver our priorities.

我們的營運紀律支柱是我們的第三個也是最後一個轉型支柱。營運紀律強調了我們對建立卓越執行文化的關注。第一季度，我們對營運方法進行了兩項改進，以便我們的團隊能夠更好地執行。我們的業務團隊以一流消費品公司的實踐為藍本，採用改進的跨職能模式運營，從而推動流程嚴謹性並確保我們保持一致以實現我們的優先事項。

We also implemented an integrated process that drives continuous improvement across forecast accuracy, inventory management and customer service levels. As a result, we are able to drive a more efficient cost structure and deliver orders reliably on time and in full for our retail partners. We believe that this focus on forecast accuracy and supply reliability will be critical for our business, our retail partners and our Honest community in this period of volatility.

我們也實施了一套綜合流程，推動預測準確性、庫存管理和客戶服務水準的持續改善。因此，我們能夠推動更有效率的成本結構，並按時、完整地為我們的零售合作夥伴交付訂單。我們相信，在這段動盪時期，專注於預測準確性和供應可靠性對於我們的業務、零售合作夥伴和誠實社群至關重要。

As I bring my remarks to a close, I'm pleased that our disciplined approach to transforming the Honest brand has allowed us to continue to outperform our categories with revenue up 13%, consumption up 8%, all while delivering increasingly profitable volume growth with net income of $3 million and our sixth consecutive quarter of positive adjusted EBITDA. We remain cautiously confident in our business as we navigate the evolving economic landscape and maintain a disciplined approach to managing the impact of tariffs. My belief in this company, our extraordinary team and our trusted products is as strong today, if not stronger, as it was the day I joined Honest. In times like these, our resilience shines as does our belief in continuing to invest to build a strong and scaled Honest brand.

在我的演講即將結束之際，我很高興看到，我們嚴謹的 Honest 品牌轉型方法讓我們的業績繼續超越同類產品，收入增長 13%，消費量增長 8%，同時實現了盈利能力不斷增強的銷量增長，淨收入達到 300 萬美元，連續六個季度實現調整後 EBITDA 為正。在應對不斷變化的經濟狀況並保持嚴謹的方法來管理關稅影響的同時，我們對我們的業務仍然保持謹慎的信心。我對這家公司、我們傑出的團隊和我們值得信賴的產品的信心，今天和我加入 Honest 的那一天一樣堅定，甚至更加堅定。在這樣的時刻，我們的韌性閃耀，我們繼續投資以建立強大而規模化的誠實品牌的信念也閃耀。

And now I will turn it over to Dave to share the financial results of our first quarter and more details on our 2025 financial outlook.

現在，我將請戴夫分享我們第一季的財務業績以及有關 2025 年財務展望的更多細節。

Thank you, Carla, and welcome, everyone. Our team's hard work to start the year has been instrumental in advancing our strategic objectives and building a stronger financial foundation. The progress we've made across our transformation pillars has led to strong top line growth and improved profitability this quarter.

謝謝你，卡拉，歡迎大家。我們團隊在年初的辛勤工作對於推進我們的策略目標和建立更強大的財務基礎起到了重要作用。我們在轉型支柱方面取得的進展推動了本季強勁的營收成長和獲利能力的提升。

Now let me dive deeper into the first quarter results. This quarter, we delivered revenue of $97 million, up 13%, driven by strong performance across our Wipes and Baby Personal Care portfolio. As a reminder, we shared during our fourth quarter earnings call that we expected our revenue growth in the first quarter would be higher than our full year revenue growth outlook due to the comparable period from last year.

現在讓我更深入地了解第一季的業績。本季度，我們的營收達到 9,700 萬美元，成長 13%，這得益於我們濕紙巾和嬰兒個人護理產品組合的強勁表現。提醒一下，我們在第四季財報電話會議上表示，由於與去年同期相比，我們預計第一季的營收成長將高於全年營收成長預期。

In addition, in the first quarter, we saw retailer inventory builds with shipments growing 5 percentage points faster than retail tracked channel consumption. We now expect this retailer inventory build to reverse in the second quarter. We also expect to continue to face headwinds in our diaper business in Q2 as we execute the full roll-out of our new and improved diaper across the remainder of the year. We expect that the combination of these factors will lead to a first half of the year growth rate within the range of our annual revenue outlook.

此外，在第一季度，我們看到零售商庫存增加，出貨量成長比零售追蹤通路消費成長快 5 個百分點。我們現在預計零售商庫存增加的趨勢將在第二季逆轉。我們也預計，由於我們將在今年剩餘時間內全面推出新型改良尿布，因此第二季我們的尿布業務將繼續面臨阻力。我們預計，這些因素的綜合作用將使上半年的成長率處於我們年度收入預期的範圍內。

Our gross margin in the first quarter was 39%, up 170 basis points versus last year, primarily driven by supply chain cost savings and a mix of higher-margin products, offset by a $3 million one-time inventory adjustment related to the strategic diaper renovation that Carla shared earlier. The adjustment to existing diaper inventory will allow for an accelerated transition in the market to the new diaper renovation and support a stronger launch with full marketing investment behind it.

我們第一季的毛利率為 39%，比去年同期成長了 170 個基點，這主要得益於供應鏈成本的節省和高利潤產品組合，但 Carla 先前分享的與策略性尿布革新相關的 300 萬美元一次性庫存調整抵消了這一影響。對現有尿布庫存的調整將使市場加速向新尿布的轉型，並支持在充分的營銷投資下更強勁地推出產品。

As the underlying gross margin performance suggests, we continue to make progress on expanding our portfolio's profit potential through efficiencies and cost savings in the supply chain. One notable cost savings example is the reorganization of our Las Vegas warehouse layout that reduces the time spent on inbound handling and staging high-volume inventory for more efficient outbound fulfillment. The less time our teams spend on reconfiguring the inventory for receiving, the more efficient and cost-effective our operations will be.

正如基礎毛利率表現所表明的那樣，我們透過提高供應鏈效率和節省成本，繼續在擴大產品組合的獲利潛力方面取得進展。一個顯著的成本節約例子是我們對拉斯維加斯倉庫佈局的重新組織，這減少了入庫處理和準備大量庫存所花費的時間，從而提高了出庫履行的效率。我們的團隊花在重新配置接收庫存的時間越少，我們的營運就會越有效率、越划算。

Next, turning to operating expenses. We increased operating expenses by $2 million versus last year. However, on a rate basis, operating expenses decreased 230 basis points as a percentage of revenue. Within operating expenses, the drivers of change include: first, SG&A expenses that decreased $1 million compared to last year and decreased 440 basis points as a percentage of revenue; and second, marketing expenses that increased $3 million to 13% of revenue.

接下來談談營運費用。與去年相比，我們的營運費用增加了 200 萬美元。然而，以比率計算，營業費用佔收入的百分比下降了 230 個基點。在營運費用方面，變化的驅動因素包括：首先，銷售、一般及行政費用與去年相比減少了 100 萬美元，佔收入的百分比減少了 440 個基點；其次，行銷費用增加了 300 萬美元，佔收入的 13%。

As we continue to focus on our overall cost structure, we remain committed to investing in brand building and driving growth, partially funded by the SG&A expense savings. I'm particularly proud to share that we delivered positive net income this quarter. The combination of strong revenue growth, gross margin expansion, operating expense leverage and interest income earned on our cash led to positive net income of $3 million, up $5 million from last year. We remain committed to sustained net income growth over the long-term, and this quarter is a continued evidence of our progress against that commitment.

在我們繼續關注整體成本結構的同時，我們仍然致力於投資品牌建立和推動成長，部分資金來自銷售、一般和行政費用的節省。我特別自豪地告訴大家，本季我們就實現了正淨收入。強勁的收入成長、毛利率擴大、營運費用槓桿以及現金利息收入的結合，帶來了 300 萬美元的淨收入，比去年增加了 500 萬美元。我們仍然致力於長期持續的淨收入成長，本季繼續證明我們正在履行這一承諾。

Adjusted EBITDA for the first quarter was $7 million compared to $3 million from the prior year first quarter. Our adjusted EBITDA as a percentage of revenue improved from 3% in the prior year first quarter to 7% in this quarter. These results are in line with our long-term algorithm of adjusted EBITDA margin expansion.

第一季調整後的 EBITDA 為 700 萬美元，而去年同期為 300 萬美元。我們的調整後 EBITDA 佔營收的百分比從去年第一季的 3% 提高到本季的 7%。這些結果符合我們調整後的 EBITDA 利潤率擴張的長期演算法。

Turning to the balance sheet. We ended the quarter with $73 million in cash and no debt outstanding. Our cash position continues to benefit from a capital-light business model and diligent management of working capital. Our strong financial footing provides greater flexibility in our growth model and allows us to invest in the business in support of expanding availability of Honest products and in navigating the current environment.

轉向資產負債表。本季末，我們擁有 7,300 萬美元現金，且沒有未償還債務。我們的現金狀況持續受惠於輕資本業務模式和勤勉的營運資本管理。我們強大的財務基礎為我們的成長模式提供了更大的靈活性，並使我們能夠投資業務，以支持擴大誠實產品的可用性並應對當前的環境。

Our free cash flow for the first quarter was negative $3 million, driven primarily by an intentional inventory build as part of our tariff mitigation plan. Overall, our first quarter financial results and the ongoing commitment to our transformation pillars gives us continued confidence in our 2025 financial outlook. Therefore, we are reaffirming our full year 2025 financial outlook that includes net revenue growth of 4% to 6% year-over-year, and adjusted EBITDA to be in the range of $27 million to $30 million. This outlook includes the impact of the tariffs announced this year.

我們第一季的自由現金流為負 300 萬美元，主要原因是作為關稅減免計畫的一部分，我們有意增加庫存。總體而言，我們的第一季財務業績以及對轉型支柱的持續承諾使我們對 2025 年的財務前景充滿信心。因此，我們重申 2025 年全年財務展望，包括淨收入年增 4% 至 6%，調整後 EBITDA 在 2,700 萬美元至 3,000 萬美元之間。這項展望包括了今年宣布的關稅的影響。

As Carla detailed, we have a comprehensive approach and strong experience in place to manage these tariffs, both in the short and long-term. Our focus on managing tariffs include three prongs. First, we built our 2025 plans to be agile in anticipation of some degree of impact, and we are adjusting our spend across the business to offset the expected impact. Second, our teams are leveraging inventory management actions to delay the impact in 2025 and accelerate supply chain cost savings. And third, with a strong and long-standing relationship with our suppliers, we are partnering to mitigate the remaining tariff exposure.

正如卡拉所詳述的，我們擁有全面的方案和豐富的經驗來管理這些關稅，無論是短期或長期。我們對關稅管理的重點包括三個面向。首先，我們制定了 2025 年計劃，以應對一定程度的影響，我們正在調整整個業務的支出以抵消預期的影響。其次，我們的團隊正在利用庫存管理措施來延緩 2025 年的影響力並加速供應鏈成本節約。第三，憑藉與供應商之間長期穩固的關係，我們正在合作減輕剩餘的關稅風險。

Our exposure under the current slate of tariffs comes largely from our sourcing of wipes in China. Our diapers are USMCA compliant goods from Mexico and are currently exempt from the latest tariffs. Overall, the current tariff policies have a roughly 1.5 percentage points net impact on gross margin in 2025, which we plan to offset with incremental cost savings and efficiencies. These tariffs are part of a dynamic macroeconomic environment. Outside of the specific impact of tariffs, we recognize there is uncertainty with broader consumer sentiment and potential changes in shopping behavior that our outlook does not include.

我們在目前關稅下的風險敞口主要來自於我們從中國採購的濕紙巾。我們的尿布是來自墨西哥的符合 USMCA 標準的商品，目前免徵最新關稅。總體而言，目前的關稅政策對 2025 年的毛利率淨影響約為 1.5 個百分點，我們計劃透過逐步節省成本和提高效率來抵消這一影響。這些關稅是動態宏觀經濟環境的一部分。除了關稅的具體影響之外，我們還認識到，更廣泛的消費者情緒和購物行為的潛在變化存在不確定性，而我們的展望並未將這些因素考慮在內。

We continue to play the long game behind our transformation pillars. We remain committed to investment in marketing and innovation through our brand maximization pillar as we also drive efficiencies to offset the cost headwinds through our margin enhancement pillar. I want to thank our team for the strong results in the first quarter and their continued execution against our transformation pillars, enabling us to successfully navigate this dynamic environment and reaffirm our 2025 financial outlook today.

我們將繼續在轉型支柱背後進行長期努力。我們將繼續致力於透過品牌最大化支柱對行銷和創新進行投資，同時我們也透過利潤率提升支柱來提高效率以抵銷成本阻力。我要感謝我們的團隊在第一季取得的強勁業績以及他們持續執行我們的轉型支柱，使我們能夠成功駕馭這個充滿活力的環境，並在今天重申我們的 2025 年財務展望。

Before we open the call for questions, I'd like to take a moment to express my sincere gratitude, as this will be my final earnings call as CFO of The Honest Company. It's been an honor to be part of such an exceptional team, guiding Honest through a period of remarkable transformation. The progress we've made is a testament to the extraordinary talent, relentless commitment and collaborative spirit of this incredible team.

在我們開始提問之前，我想花點時間表達我最誠摯的謝意，因為這將是我作為誠實公司財務長的最後一次財報電話會議。我很榮幸能夠成為這樣一支傑出團隊的一員，帶領 Honest 度過一段非凡的轉型期。我們所取得的進步證明了這個不可思議的團隊的非凡才華、不懈的承諾和協作精神。

I believe the Honest brand is still in the early stages of unlocking its full potential with so much more opportunity ahead, and I remain confident in the company's future and its ability to expand the Honest brand. I look forward to working with Curtiss to ensure a seamless transition, and I leave this role deeply proud of what we've accomplished and grateful for Carla's leadership and support.

我相信 Honest 品牌仍處於充分釋放潛力的早期階段，未來還有更多的機會，我對公司的未來及其擴展 Honest 品牌的能力充滿信心。我期待與柯蒂斯合作，確保順利過渡，在卸任這一職位後，我對我們所取得的成就深感自豪，並感謝卡拉的領導和支持。

Thank you for joining our call today. And now I'll turn the call back to the operator.

感謝您今天參加我們的電話會議。現在我將把電話轉回給接線生。

(Operator Instructions) Aaron Grey, Alliance Global Partners.

（操作員指示）Aaron Grey，Alliance Global Partners。

Congrats on the quarter. And Dave, thanks for your time and best of luck in your future endeavors. So first question for me, just on the sales for the quarter came ahead of our institute expectations there. It sounds like there was some shipping impact that you called out there. So just if you could help to quantify that.

恭喜本季取得佳績。戴夫，感謝您抽出時間，祝您未來一切順利。所以我的第一個問題是，本季的銷售額超出了我們研究所的預期。聽起來您提到的運輸方面受到了一些影響。所以如果你能幫助量化這一點的話。

For the 1H guidance you gave, so you said 1H, I think, will be up 4% to 6%, that implies 2Q will be flat to down 4% on my math. So just if you could help us to maybe quantify the shipping timing impact that you had in 1Q and how much of that reverses is 2Q versus the remainder of the year? I think that would be helpful.

對於您給予的上半年指導，您說我認為上半年將上漲 4% 至 6%，這意味著根據我的計算，第二季將持平或下降 4%。因此，您能否幫助我們量化第一季的運輸時間影響，以及第二季與今年剩餘時間相比的逆轉程度如何？我認為那會有幫助的。

Aaron, it's Carla. Good to be here with you. So let me try to start framing it up, Dave, feel free to step in if there's anything else you want to add. So we do appreciate that. We mentioned that in the first quarter, we saw some pull forward of shipments. And that we think is a really helpful part of mitigating our tariff strategy for the year.

亞倫，我是卡拉。很高興和你在一起。那麼，讓我試著開始構思一下，戴夫，如果您還有什麼要補充的，請隨時加入。所以我們對此非常感激。我們提到，在第一季度，我們看到了出貨量的一些提前。我們認為這對我們今年的關稅策略的緩解確實很有幫助。

Those shipments that we saw the pull forward in largely attributable to Amazon. And we do -- we did say that we expect that those pull-forward shipments will actually bleed out as we get into the second half. So as we look at the first half of the year as a whole, we feel that we're staying really on the guidance model as a result of that blend.

我們看到這些出貨量的提前很大程度上歸因於亞馬遜。我們確實說過，我們預計，進入下半年，這些提前出貨量實際上會減少。因此，當我們回顧整個上半年時，我們感覺由於這種融合，我們確實堅持了指導模型。

Okay. All right. Great. You gave great color on the gross margin -- sorry, go ahead, Dave.

好的。好的。偉大的。你對毛利率給了很好的描述——抱歉，請繼續，戴夫。

Yes. And maybe I could just tack on to that, too, a little bit because I think what we want to make sure is clear on the first half, 4% to 6%, we did in last year's second quarter, have the benefit of the retailer events that drove some incremental volume. And last year, if you recall, it was a 10% growth rate in the second quarter. So that does provide a bit of a comp that we're not going to have the ability to get over. So to quantify really the benefit of that pull forward, it's 5 percentage points which is roughly the difference between our revenue of 13% and our consumption growth of 8% in the first quarter as that shifts between quarters and then coming off that comp of last year's special retailer event.

是的。或許我也可以稍微補充一下這一點，因為我認為我們想要確保上半年的銷售額能夠明確，與去年第二季度相比，銷售額增長了 4% 到 6%，這得益於零售商的活動推動了銷售額的增加。如果你還記得的話，去年第二季的成長率是 10%。所以這確實提供了一點我們無法克服的競爭。因此，要量化這種提前帶來的實際好處，那就是 5 個百分點，這大致是我們第一季 13% 的營收成長和 8% 的消費成長之間的差額，因為這個差額在各個季度之間會發生變化，然後根據去年的特殊零售商活動進行計算。

Okay. Great. That's really helpful color there. I appreciate it. Second question for me, just on the marketing side. Maybe if you could speak to some of the plans you have for marketing for 2025 and how we should think about marketing as a percentage of sales. Last year, we did see an uptake in marketing, which translated to some nice accelerated sales growth. So curious how you plan your spending for the year, what you're seeing as the best ROI opportunities as you look at macro and micro marketing initiatives.

好的。偉大的。那顏色確實很有幫助。我很感激。我的第二個問題是關於行銷方面的。也許您可以談談您對 2025 年行銷的一些計劃，以及我們應該如何看待行銷佔銷售額的百分比。去年，我們確實看到了行銷的成長，這轉化為良好的加速銷售成長。我很好奇您如何規劃今年的支出，當您考慮宏觀和微觀行銷計劃時，您認為最佳的投資報酬率機會是什麼。

Thanks, Aaron. So we believe so strongly in our opportunity to build the Honest brand. The performance in the first quarter as it really even follows the strong performance last fiscal year is extremely encouraging and is one of the reasons why we try to make it clear that we intend to continue our investments in both innovation, marketing, brand building. So with our revenue up 13% in the first quarter with 8% growth on consumption, what was so compelling about that consumption growth that we saw is that it was driven by units. This was not consumption growth driven by pricing in the quarter. It's driven by units. And it's driven by really strong consumer fundamentals that don't always come along together at the same time.

謝謝，亞倫。因此，我們堅信我們有機會打造誠實品牌。第一季的業績其實延續了上一財年的強勁表現，這非常令人鼓舞，這也是我們試圖明確表示打算繼續在創新、行銷和品牌建立方面進行投資的原因之一。因此，第一季我們的營收成長了 13%，消費成長了 8%，我們看到的消費成長如此引人注目的原因在於它是由單位推動的。這並不是本季由價格推動的消費成長。它是由單位驅動的。這是由真正強勁的消費者基本面所推動的，而這些基本面並不總是同時出現。

So our ability to increase our household penetration to our highest level of 7.3%, a basis point expansion of 55% while dollars per transaction at the same time and growing consumer loyalty gives us a great indication that as we manage the business model and have been able to find efficiencies from our margin enhancement pillar, we are able to protect for continued strong investment behind marketing. You saw that our investment in the first quarter in marketing was very strong and represented an increase in an investment in the brand, while SG&A levels pulled down.

因此，我們能夠將家庭滲透率提高到最高水準 7.3%，基點擴大 55%，同時每筆交易的金額和消費者忠誠度不斷提高，這充分錶明，隨著我們管理業務模式並能夠從利潤率提升支柱中找到效率，我們能夠確保在行銷方面持續強勁的投資。您會看到，我們在第一季對行銷的投入非常強勁，代表對品牌的投資增加，而銷售、一般及行政費用水準則下降。

And so as we go into the remainder of the year, one of the things I talked about in the remarks was the importance of this new and improved diaper. We intended to support that diaper launch. Additionally, we are launching our wipes business into new retailers and into new aisles. And so we will continue to protect the investment to drive awareness of the new stores that we are in as well as to continue to drive trial and awareness.

因此，當我們進入今年剩餘時間時，我在評論中談到的事情之一就是這種新型改良尿布的重要性。我們打算支持該尿布的推出。此外，我們正在向新的零售商和新的貨架推出我們的濕紙巾業務。因此，我們將繼續保護投資，以提高我們對新店的知名度，並繼續推動試用和知名度。

Anna, B. Riley Securities.

安娜，B.萊利證券。

I guess I'd like to start with unpacking the deceleration you noted exiting the quarter and into 2Q. I guess with the data do you have, is there anything to suggest that 1Q consumption benefited from a pull forward and that in 2Q, the categories are decelerating as well? Or is it more specific to you guys? And just unpacking maybe trends by category?

我想先解釋一下您在本季末和第二季時注意到的減速現象。我想根據您掌握的數據，是否有跡象表明第一季消費受益於提前成長，而第二季各類別消費也在減速？還是對你們來說更具體一點？或許只是按類別來分析趨勢？

Sure. Anna, this is Carla. Nice to speak with you. So let me start by -- I just got a chance to share the really strong consumption numbers that we saw in the first quarter and how that was driven by strong consumer fundamentals. It's important to help unpack as we talk about the deceleration, we're really in a tale of two cities. And so if I really take a look at the sort of deconstructed consumption information for the first quarter, in the Target channel for us, that is really where those decelerations were fairly isolated, and they were even more specifically isolated to our diaper performance in Target for the first quarter.

當然。安娜，這是卡拉。很高興和你交談。首先，我剛剛有機會分享我們在第一季看到的非常強勁的消費數據，以及強勁的消費基本面是如何推動這一成長的。當我們談論減速時，幫助解開這個問題很重要，我們實際上是在講述兩個城市的故事。因此，如果我真的看一下第一季在 Target 頻道中的消費訊息，就會發現這些減速實際上是相當孤立的，更具體地說，它們與我們第一季在 Target 的尿布表現是孤立的。

So in Target for the first quarter, our consumption was down 4%. When we look at our performance in rest of market, you compare that down 4% in Target to strong double-digit growth for our performance in the rest of the market, almost at 20% consumption growth for our portfolio ex Target. That's very compelling for us. We know that as we look at the deceleration of the diaper business in Target, we think that there are a couple of factors that are important to note. One, the category as a whole, the diaper category remains to be under pressure. And this quarter, we saw that it was declining at a modest rate broadly for the diaper category.

因此，在第一季度，我們的消費量下降了 4%。當我們觀察我們在其餘市場的表現時，你會發現，Target 的業績下滑了 4%，而我們其餘市場的表現卻實現了強勁的兩位數增長，除 Target 外，我們的投資組合的消費增長率接近 20%。這對我們來說非常有吸引力。我們知道，當我們看到塔吉特尿布業務的減速時，我們認為有幾個因素值得注意。一、從整個類別來看，紙尿褲品類仍面臨壓力。本季度，我們發現尿布類別的銷售普遍呈現溫和下降趨勢。

We also indicated in our remarks that there has been a change to our diaper selection at Target, and we have removed our gendered prints from that retailer. And so we expect that as we continue to watch the distribution losses from the gendered prints flow through the year, that we will continue to see some consumption losses associated with those distribution losses across the quarter. But we remain very confident that the natural product market, when you look at the performance of natural products versus the conventional, again, it's that tale of two cities.

我們也在評論中指出，Target 的尿布選擇已經發生了變化，並且我們已經從該零售商處撤下了性別印花。因此，我們預計，隨著我們繼續觀察性別印刷品在全年的分銷損失，我們將繼續看到與本季分銷損失相關的一些消費損失。但我們仍然對天然產品市場充滿信心，當你對比天然產品與傳統產品的表現時，你會發現，這又是一個「雙城記」。

We're seeing strong growth in natural products overall, which is really one of the reasons why we've seen our own strength in the natural products category, whether that is now being the #1 natural wipes brand nationally or our strength in our baby personal care business that we see both in -- broadly in the market, being the #1 natural baby personal care brand as well as being the #1 baby personal care brand at Target overall. Lots of green shoots and things that make us confident, but we do have to work our way through some of these changes in distribution.q

我們看到天然產品整體呈現強勁成長勢頭，這也是我們在天然產品領域展現自身優勢的原因之一，無論是現在我們成為全國第一的天然濕巾品牌，還是我們在嬰兒個人護理業務方面的優勢，我們都看到——在廣泛的市場上，我們是第一的天然嬰兒個人護理品牌，也是塔吉特整體排名第一的嬰兒個人護理品牌。許多復甦跡象和事情讓我們充滿信心，但我們確實需要努力應對分銷方面的一些變化。

Great. That's super helpful. I guess double-clicking on one of your comments, you spoke to continued strength in natural. One question we get from investors a lot is the willingness to continue to pay up for natural products in the face of continued macro uncertainty. It seems that at this point, you haven't seen meaningful trade down in your categories. Is that fair?

偉大的。這非常有幫助。我想雙擊您的一條評論，您談到了自然的持續力量。我們經常從投資者那裡聽到的一個問題是，面對持續的宏觀不確定性，他們是否願意繼續為天然產品付費。看起來，目前為止，您還沒有看到您的類別出現明顯的貿易下降。這樣公平嗎？

The way I'd like to frame it is just keeping us focused on what we can see by our own performance relative to our categories. So for the quarter, we continued to perform and grow consumption ahead of our competitive categories. As a reminder, I did say in the remarks, our own consumption in the quarter was up 8%. Our competitive categories were down 1% for the same period. Now we have seen a modest deceleration in our business. When we've exited Q4, if we convert our data, which our data set has changed, we used to be reporting to you in MULO only. Now we are reporting to you in MULO+, which does a better job of representing the Amazon growth in the number.

我想表達的方式是讓我們專注於我們自身相對於類別的表現所能看到的東西。因此，本季我們的表現持續優於其他競爭類別，且消費量成長也領先其他競爭類別。提醒一下，我在評論中確實說過，我們本季的消費成長了 8%。同期，我們的競爭類別下降了 1%。現在，我們的業務略有放緩。當我們退出第四季度時，如果我們轉換資料（我們的資料集已經變更），我們過去只會在 MULO 中向您報告。現在我們透過 MULO+ 向您報告，它在數字上更好地體現了亞馬遜的成長。

So as we now update how we communicate to you about the fourth quarter, our fourth quarter consumption was at about 11% growth, compare that to 8% growth in the first quarter, that's about a change of 3%. As we keep our eye on what the consumer -- what we expect the consumer to do, certainly, Anna, there's so much uncertainty. We will continue to watch our performance. But we know that our products serve a fundamental need and what we are seeing is that there are homes that don't think of sensitive skin products as something that's optional at this stage as they are supporting their families' needs. We do, though, have that cautious confidence. And so the modeling we have puts our consumption numbers at mid single-digits for the rest of the year.

因此，當我們現在更新有關第四季度的資訊時，我們的第四季度消費量增長了約 11%，與第一季 8% 的增長率相比，變化幅度約為 3%。當我們專注於消費者做什麼——我們期望消費者做什麼時，安娜，當然存在著許多不確定性。我們會繼續關注我們的表現。但我們知道我們的產品滿足了基本需求，我們看到，有些家庭不認為敏感肌膚產品是可有可無的東西，因為它們可以滿足家人的需求。但我們確實有這種謹慎的信心。因此，根據我們的模型，今年剩餘時間的消費數字將處於中等個位數。

Andrea Teixeira, JPMorgan.

摩根大通的安德里亞特謝拉 (Andrea Teixeira)。

Congrats to both Dave and Curtiss for the new job. And Dave, thank you for teaching us and turning around and inflecting numbers and help the company inflect numbers. I have a demand question for you, Carla, and related to the distribution and also the product portfolio, and then I have a follow-up on the tariffs. On the distribution and product portfolio, are the unit growth -- I mean, the units growing the way they're growing, driven by mostly velocity or still distribution gains or that's a combination of both?

恭喜戴夫和柯蒂斯獲得新工作。戴夫，謝謝你教導我們，扭轉和改變數字，並幫助公司改變數字。卡拉，我有一個需求問題想問你，與分銷和產品組合有關，然後我會跟進關稅問題。在分銷和產品組合方面，單位增長——我的意思是，單位增長的方式主要是由速度驅動還是仍然由分銷收益驅動，或者兩者兼而有之？

And if you think ahead, do you -- when do you think you'll lap or you still have on the plans a lot more? I mean it would be nice to update us with how the spring resets have played out for you and if there is still more to come in the fall. And as you think your product portfolio, I was hoping to see if you can kind of elaborate more on the plans. Of course, you have a very wide product portfolio that deals with baby and broadly with mom and mom and family. But you also had an increase or an expansion in other areas, including prenatal vitamins and other areas there. And I was wondering, given the deceleration in vitamins and VMS in general, if you still think that is a category that you want to play in and if you feel that you have the right to win there?

如果您提前考慮的話，您認為什麼時候可以完成計劃或您還有哪些計劃？我的意思是，如果您能向我們更新春季重置的進展情況，以及秋季是否還會有更多重置，那就太好了。當您考慮您的產品組合時，我希望看看您是否可以更詳細地闡述計劃。當然，你們的產品組合非常廣泛，涵蓋嬰兒、媽媽和家庭。但其他領域也有所增加或擴大，包括產前維生素和其他領域。我想知道，鑑於維生素和 VMS 的整體減速，您是否仍然認為這是您想涉足的類別，並且您是否覺得您有權在那裡獲勝？

And then sorry for the long list of questions, but I will come back with the tariff, if I can.

抱歉，我問了這麼多問題，但如果可以的話，我會再回答關稅問題。

Andrea, first of all, I'm stepping in, but I want to just echo your thanks to Dave, and I know Dave wants to get a chance to make sure that he thanks you for your continued partnership. Let me start with your question about distribution and give you an update there. So the unit growth that I mentioned, when you compare that to exactly how it happened, it's extremely compelling.

安德里亞，首先，我要插話，但我只想附和你對戴夫的感謝，我知道戴夫想有機會確保感謝你一直以來的合作。讓我先從您關於分銷的問題開始，並向您提供最新資訊。因此，當我提到單位成長與實際發生的情況進行比較時，就會發現它非常引人注目。

For the quarter, while you will see that our total points of distribution actually declined in the quarter. If you remember, the distribution strategy we're executing is actually a hero distribution strategy. And so that means that as we continue to remodel our business, do some mix shifting, we know that there might be some distribution points that go away, but all distribution points are not equal for us. So let me make sure that I frame that a little bit more specifically.

就本季而言，您會發現我們的總分銷點實際上在本季有所下降。如果你還記得的話，我們正在執行的分配策略其實是一種英雄分配策略。這意味著，隨著我們繼續重塑業務，進行一些組合轉變，我們知道可能會有一些分銷點消失，但並非所有分銷點對我們來說都是平等的。因此，讓我確保我能更具體地闡述這一點。

We think that there are about 90,000 relevant doors we could be in. Today, we are still in less than half of those doors. I know this has been a conversation we've been talking about for a long time, but I want to assure you that we're still at very early days on actually executing getting into the doors. And then if you remember from our investor presentation, we say that it is a door strategy, but that it's also a number of stores strategy. It is a breadth of aisle strategy, and then it is a breadth of items strategy.

我們認為我們可能進入的相關門有大約 90,000 扇。時至今日，我們仍未走進其中一半的門。我知道這是我們長期以來一直在討論的一個話題，但我想向你們保證，我們在實際執行上仍處於非常早期的階段。如果你還記得我們在投資人介紹中說過，這是一種門戶策略，但這也是多店策略。這是一種過道寬度策略，然後是一種產品寬度策略。

So there's quite a lot of layers of decks in there. So we are in less than half of the available stores today. But what was so important as we exited last fiscal year, although we brought SG&A numbers down, we greatly shifted where our people are supporting our strategy. And so we really ramped up on sales and distribution and customer-facing support, and we're seeing the fruits of that in the quarter. So I wanted to just emphasize that we've seen some really strong distribution growth in the quarter in the grocery and drug channel.

所以裡面有相當多的層甲板。因此，目前我們的業務覆蓋不到一半的可用商店。但在我們結束上個財年時，重要的是，儘管我們降低了銷售、一般和行政費用數字，但我們大大改變了員工支持我們策略的方向。因此，我們確實加大了銷售、分銷和麵向客戶的支援力度，並且在本季度看到了成果。因此，我想強調的是，我們在本季看到雜貨和藥品通路的分銷成長非常強勁。

In the grocery and drug channel, we've increased 12,000 points of distribution in the quarter. And some of that is by getting into aisles we hadn't been in. I will give you just a couple of examples. We are now the only diaper brand in Sprouts stores nationwide. That's a first for us. We got in at Whole Foods in a broader way in the baby personal care set. You can imagine how important Whole Foods is for us and making sure our baby personal care items are there.

在雜貨和藥品管道，我們在本季增加了 12,000 個分銷點。其中一部分是透過進入我們以前從未去過的過道來實現的。我僅舉幾個例子。我們現在是全國 Sprouts 商店中唯一的尿布品牌。這對我們來說還是第一次。我們以更廣泛的方式進入了 Whole Foods 的嬰兒個人護理產品領域。你可以想像 Whole Foods 對我們有多重要，並確保我們的嬰兒個人護理用品在那裡。

And then lastly, I don't want to forget about the importance of online volume because online volume is not counted in points of distribution, but we can see by the strength of our performance at Amazon, online volume is going to be an important place to make sure we expand our set and we have all of our products available. That's why gaining sensitive skin wipes, excuse me, why gaining the sanitizing wipes in walmart.com this quarter is such a big deal and such a great example. There are many consumers who don't have access to shopping in a physical Walmart, but will order from walmart.com online. So feeling really good about where our distribution will go. But that might mean that at times like at Target, we are seeing some of our sort of less efficient distribution coming out while we focus on heroes.

最後，我不想忘記在線銷售量的重要性，因為在線銷售量不會計入分銷點，但從亞馬遜的強勁表現來看，在線銷售量將成為確保我們擴大產品範圍並保證所有產品均可使用的重要環節。這就是為什麼獲得敏感肌膚濕紙巾，對不起，為什麼本季在 walmart.com 獲得消毒濕紙巾是如此重要且是一個很好的例子。許多消費者無法去實體沃爾瑪購物，但會從 walmart.com 線上訂購。所以對我們的分銷去向感到非常滿意。但這可能意味著，在 Target 這樣的情況下，當我們專注於英雄人物時，我們會看到一些效率較低的分銷方式出現。

The other thing I wanted to say was that our velocities are up all the while. So you asked about that growth. Remember, I did say dollars per transaction are up for us. So the more that we continue to grow space and continue to sell people larger sizes, more items in their basket, the better that will be for us in the long run.

我想說的另一件事是，我們的速度一直在提高。所以你問到了有關成長的問題。請記住，我確實說過我們每筆交易的金額都在增加。因此，我們越是繼續擴大空間並繼續向人們出售更大尺寸的產品，他們的購物籃裡就有更多商品，從長遠來看，這對我們越有利。

I'd like to just step over to the question about the vitamin really quickly and say that our vitamin portfolio is something that really we have narrowed down to specify the vitamins we think that are the most aligned with our prenatal and our mama care strategy. So we really have two, a prenatal and a postnatal vitamin. They play most strongly in the online channel.

我想很快回答關於維生素的問題，我們的維生素組合實際上已經縮小，以指定我們認為最符合我們的產前和媽媽護理策略的維生素。所以我們其實有兩種維生素，一種是產前維生素，一種是產後維生素。他們在線上通路表現最為強勁。

Very helpful. And then this is super comprehensive. Thank you for giving us all this data. And then on the tariff side, I understand that for the -- you managed your inventory. I was hoping to see if you can share a little bit of the impact, especially in China. And then obviously, you're going to have to face -- is that the way to think is that you have this impact in the second half that you're able to mitigate because of your cost initiatives and all the three-pronged strategy that you mentioned?

非常有幫助。這是非常全面的。感謝您向我們提供所有這些數據。然後在關稅方面，我了解到 - 您管理您的庫存。我希望看看您是否可以分享一些影響，特別是在中國。然後顯然，你將不得不面對——這樣想的話，你在下半年會受到這種影響，而你能夠透過成本計畫和你提到的所有三管齊下的策略來減輕這種影響嗎？

And then in the next -- the following year, then you're going to have the impact of the first half, I'm assuming, right, because then you're going to lap the inventory. Can you explain -- I mean, I'm assuming you are and you're counting on the 90 day and you're assuming the 125 or you're assuming just the ones that were, the 20 plus the 20, just to clarify a bit the impact.

然後在接下來的一年裡，你會受到上半年的影響，我猜，對的，因為那時你將會覆蓋庫存。你能解釋一下嗎——我的意思是，我假設你正在計算 90 天，你假設 125 天，或者你只假設 20 天加上 20 天，只是為了稍微澄清一下影響。

Yes. Andrea, let me handle the tariff questions there. So to kind of reset and you did pick up on some of the salient points around our three-pronged strategy and how we got after this at an early stage. In fact, when we shared our outlook at the beginning of the year, that factored in tariffs based on what we knew. And at that point, there was risk of tariffs on Mexico where our diapers are manufactured. And now that, that's off the table, we focus on really where China is the primary area of exposure for us where our wipes are manufactured.

是的。安德里亞，讓我來處理那裡的關稅問題。因此，重新開始吧，你確實了解了我們的三管齊下策略的一些要點，以及我們在早期階段是如何實現這一目標的。事實上，當我們在年初分享我們的展望時，我們已經根據所了解的情況將關稅考慮在內了。那時，我們的尿布生產地墨西哥就存在著被徵收關稅的風險。現在，這個問題已經不再考慮，我們真正關注的是中國，也就是我們濕紙巾的主要生產地。

So we take the current tariff rates that are in place today with China. There's not the 90 day waiting period on that. But getting ahead of the plans for building a wipes inventory is what's giving us a lot of lead time, a lot of time to work through the existing inventory that doesn't have tariffs on it. And that's getting us into our third quarter. So roughly mid-third quarter is when we'll start to see the impact of tariffs make its way into our cost of goods and then into the fourth quarter.

因此，我們採用目前對中國實施的現行關稅稅率。沒有 90 天的等待期。但是，提前製定濕巾庫存建設計劃會給我們帶來大量的準備時間，大量的時間來處理沒有關稅的現有庫存。這就是我們進入第三季的原因。因此，大約在第三季中期，我們將開始看到關稅的影響進入我們的商品成本，然後進入第四季。

But it might also be helpful to reiterate and when we thought about our three-pronged strategy of mitigation of working with our supplier to help as well offset some of that impact. Our starting point from a gross margin standpoint is in a healthier place given the last two years of working on our enhancement -- margin enhancement pillar. To illustrate that in our first quarter, I referenced a charge, an adjustment to diaper inventory of almost $3 million. If that were to be removed in the first quarter, our base gross margin levels are clearly a little over 41%.

但重申這一點也許會有所幫助，當我們考慮與供應商合作的三管齊下的緩解策略時，也有助於抵消部分影響。從毛利率的角度來看，考慮到我們過去兩年來對利潤率提升支柱的持續努力，我們的起點處於更健康的狀態。為了說明這一點，在第一季度，我提到了一項費用，即對尿布庫存的近 300 萬美元的調整。如果在第一季將其去除，我們的基本毛利率水準顯然會略高於 41%。

And so I think what we're seeing now, and that's just for one quarter, but we're seeing the ability for us to manage some of the tariff impact, which isn't new to us, but manage it within this framework as we've been building our profit profile of the portfolio over this time. And that's giving us the confidence that as we look into next year, if there's still an environment where we're facing tariffs at whatever level they might be, that we've got the flexibility, and we've got the business model to weather through that.

所以我認為我們現在看到的只是一個季度的情況，但我們看到我們有能力管理一些關稅的影響，這對我們來說並不新鮮，但我們會在這個框架內進行管理，因為我們一直在建立投資組合的利潤狀況。這讓我們有信心，展望明年，如果我們仍然面臨關稅，無論關稅水平如何，我們都有足夠的靈活性和商業模式來應對。

As a reminder, our sourcing is with partnerships. We are a capital-light model. And so we operate with a variable cost model in that. And it gives us a lot of maneuverability and flexibility as we look forward.

提醒一下，我們的採購是透過合作關係進行的。我們是輕資本模式。因此我們採用變動成本模型來運作。它為我們展望未來提供了很大的機動性和靈活性。

So if I interpreted that in the way, like if it comes to fruition and you happen to basically, call it, like mid-third quarter, the fall, right? So if by then things are still in place, the tariffs are still in place, are you able to negotiate with those suppliers to either have them move their production elsewhere where, let's say, Mexico, where you have your battery production with a third-party or you're going to say, listen, you're going to have to absorb part of it? Or you're thinking still a much cheaper place to make the diapers that don't have flexibility or you do have the flexibility or you have started to look around as possibilities in other places, including with your suppliers in Mexico or in Canada or other places where you have reciprocity or USMCA. Is that the right way to think? I mean, in other words, you're not going to pass through these cost increases if it comes to that.

因此，如果我這樣解釋，例如如果它實現了，而你恰好基本上稱之為第三季度中期，即秋季，對嗎？所以，如果到那時情況仍然如此，關稅仍然存在，你是否能夠與這些供應商談判，讓他們將生產轉移到其他地方，比如墨西哥，在那裡你與第三方合作生產電池，或者你會說，聽著，你必須吸收一部分？或者您仍在考慮尋找一個更便宜的地方來生產不具有柔韌性的尿布，或者您確實具有柔韌性，或者您已經開始在其他地方尋找可能性，包括與墨西哥、加拿大或其他具有互惠或 USMCA 的地方的供應商合作。這是正確的思考方式嗎？我的意思是，換句話說，如果事情發展到那一步，你就不會承擔這些成本的增加。

Andrea, I think what I want to make sure that I establish is, as we've modeled it out for the year with about a 1.5 percentage point tariff impact for the year, which we think begins again, around the midpoint of Q3 and going into Q4. The ability for us to stay on model for the year really still lives in the fact that we're actually not new at all to being prepared for this moment and how we deal with tariffs. We've been dealing with tariffs and talking with our suppliers about ways to improve our supply chain and our partnership for several administrations, which means that our solution set of having a reliable sourcing supply has already been an ongoing conversation and strategy we were having as we entered this time.

安德里亞，我想確保的是，正如我們對今年的模型所預測的那樣，今年的關稅影響約為 1.5 個百分點，我們認為這一影響將在第三季度中期開始，並持續到第四季度。我們之所以能夠保持今年的模式，實際上仍然在於這樣一個事實：我們對這一刻的準備以及我們如何應對關稅其實並不陌生。我們一直在處理關稅問題，並與我們的供應商討論如何改善我們的供應鏈和與多個政府部門的合作關係，這意味著我們擁有可靠採購供應的解決方案已經成為我們進入這段時期的持續對話和策略。

As we look at what the solutions will be as we go beyond this year, I'd just like to say it's grounded like we're hearing everybody say. We're going to look at the broad set of factors and opportunities. Those are well covered both in our margin -- our ongoing margin enhancement pillar, which was so enduring. It set us up to be always working on a strong balance sheet, plenty of cash on hand, making sure that we were expanding bottom line faster than top. So that work is really work that continues.

當我們展望今年以後的解決方案時，我只想說，就像我們聽到每個人說的那樣，這是有根據的。我們將研究廣泛的因素和機會。這些都在我們的利潤率——我們持續的利潤率提升支柱——中得到了很好的體現，這是非常持久的。它使我們始終擁有強勁的資產負債表和充足的現金，確保我們的底線擴張速度快於頂線擴張速度。因此這項工作確實是一項持續的工作。

And then we will take our three-pronged tariff mitigation strategy. We always build -- I almost like to think of it as an accordion type model on our investment spending in the plan. So that's one area we look. We look to try to get more efficient. We're learning as we go. We've increased our supply chain knowledge by adding a supply chain executive to my team, which means we're having even stronger and more specific conversations with our supply partners about all the options. And I look forward to making sure that we talk about what we need to do when we come back with you guys in the next quarter. But if we think we have to address things differently, we will be doing that based on a lot of the rigorous analysis of staying on our guidance.

然後我們將採取三管齊下的關稅減免策略。我們始終在建造——我幾乎喜歡把它看作是我們計劃中的投資支出的手風琴式模型。這是我們關注的一個領域。我們希望提高效率。我們邊走邊學。透過在我的團隊中增加一名供應鏈主管，我們增加了我們的供應鏈知識，這意味著我們可以與我們的供應合作夥伴就所有選擇進行更有力、更具體的對話。我期待著確保我們在下個季度與你們見面時討論我們需要做什麼。但如果我們認為必須以不同的方式解決問題，我們將在堅持指導方針的基礎上，進行大量嚴格的分析。

Dana Telsey, Telsey Advisory Group.

達娜‧特爾西 (Dana Telsey)，特爾西顧問集團 (Telsey Advisory Group)。

Dave, best of luck in your next in retirement. I want to ask a question on the near-term and the long-term. When you think about the near-term, and you talked about, Carla, I think the modest deceleration in the business currently, is that happening across all types of customers? Is it happening across all categories? What have you seen? And what does the promotional environment look like? And then on the long-term, with the supply chain mitigation strategies that you have in place, what do you see as -- is there margin opportunities coming out of this given the greater efficiencies that you see in the business over the long-term, even in the headwinds of what we have going on now?

戴夫，祝你退休後一切順利。我想問一個關於近期和長期的問題。卡拉，當您考慮短期情況時，我認為目前業務的適度減速是否發生在所有類型的客戶身上？所有類別都出現這種情況嗎？你看到了什麼？促銷環境是什麼樣的？那麼從長遠來看，透過您制定的供應鏈緩解策略，您認為——考慮到您看到的長期業務效率的提高，即使在當前面臨的逆風中，是否也存在盈利機會？

All right. Thank you for asking, Dana. It is so great to be with you today. When we look at the deceleration of the business, as I've articulated that we're really seeing it quite isolated to one customer for the quarter. When I look at our performance at Target with consumption down 4% as compared to our own performance in rest of market with strong double-digit consumption growth of nearly 20%. That consumption growth, as far as we've seen it in the recent period has remained fairly consistent, Dana.

好的。謝謝你的詢問，達娜。今天能和你們在一起真是太好了。當我們看到業務減速時，正如我所表達的，我們確實看到本季的業務僅限於一位客戶。當我看到我們在塔吉特的業績時，消費量下降了 4%，而我們在其他市場的業績卻實現了近 20% 的強勁兩位數消費增長。就我們最近看到的而言，消費成長保持相當穩定，達納。

And so what we feel is important to be mindful of is that the diaper distribution losses in Target will continue to affect us for the remainder of the year. We have to really work through those changes and that simplification of that set. We know that, that category also remains under a bit of pressure. There are also a couple of events uniquely that we performed last year that we are not duplicating this year. So if you remember, we had a Target-specific anniversary celebration performance. That performed in the third quarter last year, but some of that revenue pull forward or the -- excuse me, the getting ready to have the inventory on hand for shipping for our great shelf displays, a lot of that revenue was reflected in the second quarter last year. We won't be repeating that.

因此，我們認為需要注意的是，Target 的尿布分銷損失將在今年剩餘時間內繼續影響我們。我們必須真正努力實現這些變化並簡化這一過程。我們知道，該類別仍然面臨一些壓力。我們去年也舉辦了一些獨特的活動，今年不會再重複。如果你還記得的話，我們舉辦了一場針對 Target 的周年慶典表演。這是去年第三季的表現，但其中一部分收入是提前的，或者說——對不起，是準備將庫存運送到我們精美的貨架展示架上，其中許多收入反映在去年第二季。我們不會再重複這樣的事了。

Similarly, you might remember, we had a Latino-focused event for Walmart specifically last year. Another event we're not repeating. So those are some other changes that we expect to see reflected in the numbers. We are doing that at the same time that we are growing distribution. We are continuing to do strong brand building and marketing. We are launching our best diaper ever. We have expanded larger sizes. We've expanded prints on the flushable wipes. So I like to think that we've got really smarter and very balanced efforts, but there are some things we have to work through.

同樣，您可能還記得，去年我們專門為沃爾瑪舉辦了一場以拉丁裔為重點的活動。我們不會重複發生的另一件事。這些是我們期望在數字中反映出來的一些其他變化。我們在擴大分銷的同時還在這樣做。我們正在繼續大力開展品牌建立和行銷。我們正在推出迄今為止最好的尿布。我們已經擴大了尺寸。我們擴大了可沖洗濕巾上的印刷品。所以我認為我們已經做出了更明智和平衡的努力，但仍有一些事情需要我們努力解決。

Yes. Dana, I'd say the question around the long-term opportunities, we don't think we're done finding the opportunity to expand margin. I mean that is a core tenet of our long-term algorithm. And we do believe that supply chain is one of the areas that's going to materialize there. The tariff environment and the current challenges is something that is giving us even further focus on this area of the business.

是的。達娜，我想說的是圍繞長期機會的問題，我們認為我們還沒有找到擴大利潤的機會。我的意思是這是我們長期演算法的核心原則。我們確實相信供應鏈是即將實現的領域之一。關稅環境和當前的挑戰使我們更加關注這一業務領域。

But I'll also add, when we look at (technical difficulty) of the portfolio and how it's evolved, we are with a portfolio that's got a profit potential that's greater than we've had before. The mix of our products at margin levels that are higher and the channels that we're selling through have a higher margin will continue to evolve and allow us to see margin expansion over the long-term.

但我還要補充一點，當我們審視投資組合的（技術難度）及其演變方式時，我們發現，我們的投資組合的獲利潛力比以前更大。我們的利潤率較高的產品組合以及我們銷售的利潤率較高的管道將繼續發展，並使我們能夠看到長期利潤率的擴大。

Owen Rickert, Northland Capital Markets.

歐文‧里克特 (Owen Rickert)，北國資本市場 (Northland Capital Markets)。

I'll try to keep it quick here. But how do you plan balance promotional intensity in both the retail and digital channels just as you continue to push for margin expansion? And then secondly, how far along are you in the process of pushing more of your digital consumers towards Amazon and other partners and away from the DTC website?

我會盡量簡短地講解。但是，在繼續努力擴大利潤率的同時，您如何平衡零售和數位管道的促銷強度？其次，在推動更多數位消費者從 DTC 網站轉向亞馬遜和其他合作夥伴方面，你們進展如何？

Owen, Carla here. I hope you're well. The way we think about our channel strategy is while we work to make sure we've got the right strategy to meet every consumer, and we do great joint business planning with the retailers to make sure we've got our investment approach right. We do not try to push a consumer to any particular channel. And we've learned that as we've been omnichannel operators since our beginning, and we've tried it in a number of ways. We realized the best thing for us is to make sure we've got the right selection and the maximum selection for whenever someone wants to be buying an Honest product.

歐文，我是卡拉。我希望你一切都好。我們思考通路策略的方式是，我們努力確保我們有正確的策略來滿足每一位消費者，並且我們與零售商進行良好的聯合業務規劃，以確保我們的投資方法正確。我們不會試圖將消費者推向任何特定的管道。我們從一開始就一直採用全通路運營，並且已經嘗試了多種方式。我們意識到，對我們來說最好的事情是確保我們擁有正確的選擇，並且當有人想要購買誠實產品時，我們擁有最大的選擇。

And Owen, what I can tell you that you can actually see evidenced in our results this quarter is that distribution, whether it's online distribution, which doesn't get counted in points, or physical in-store distribution is extremely incremental. When you get into a new store, into a new channel and into a new aisle, you really have the opportunity to pull in a new consumer. That's why in a quarter where you actually saw us go modestly backwards in distribution points, you actually saw all of our growth drivers get stronger because we got our distribution more broad meant we reached more homes. So that is something that we plan to continue.

歐文，我可以告訴你，你實際上可以從我們本季度的業績中看到，分銷，無論是不計入積分的在線分銷，還是實體店內分銷，都是極其增量的。當你進入一家新商店、新管道和新走道時，你確實有機會吸引新的消費者。這就是為什麼在一個季度中，你實際上看到我們的分銷點略有倒退，但你實際上看到我們所有的成長動力都變得更強勁，因為我們的分銷範圍更廣，這意味著我們涵蓋了更多的家庭。因此我們計劃繼續這樣做。

And as we work our way towards shifting our own honest.com model, I want to remind everyone that the honest.com channel will remain available. It will remain active for our consumers who land there and want to execute a transaction and for our consumers if they want to gain information. It's just that we're getting out of the fulfillment and shipping component of that business. So we don't really expect that to be a dramatically different experience.

當我們努力轉變我們自己的 honest.com 模式時，我想提醒大家，honest.com 頻道將繼續可用。對於登陸該平台並想要執行交易的消費者以及想要獲取資訊的消費者來說，它將保持活躍狀態。我們只是退出了該業務的履行和運輸部分。所以我們並不真的期望這會是截然不同的體驗。

Thank you. And I'm showing no further questions. So with that, I'll hand the call back over to CEO, Carla Vernon, for any closing remarks.

謝謝。我沒有其他問題。因此，我將把電話轉回給執行長卡拉·弗農 (Carla Vernon)，請她做最後發言。

Well, this is a quarter where the most important thing I can do is absolutely thank Dave for the impact he's had in his tenure. The results are so evident, Dave. We just absolutely commend the role you've played in driving our strategy of top line growth and bottom line margin expansion while strengthening the team. You are evidence of the transformation pillars in action. So thankful. We are excited for you all to meet Curtiss when we are on our next call and look forward to joining you next quarter. Thank you.

嗯，這個季度我能做的最重要的事情就是感謝戴夫在任期內所產生的影響。結果非常明顯，戴夫。我們非常讚賞您在推動我們的營收成長和利潤率擴張策略以及加強團隊建立方面所發揮的作用。你們就是轉型支柱正在發揮作用的證據。非常感謝。我們很高興大家能在下次通話時見到柯蒂斯，並期待下個季度與你們一起。謝謝。

Thank you. Ladies and gentlemen, this does conclude today's program, and you may now disconnect.

謝謝。女士們、先生們，今天的節目到此結束，大家可以斷開連結了。