Honest Company Inc (HNST) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to The Honest Company’s third quarter, 2025 earnings conference call. (Operator Instructions)

女士們、先生們，感謝各位的耐心等待，歡迎參加The Honest Company 2025年第三季財報電話會議。（操作說明）

Please be advised that today's conference is being recorded. I would now like to hand the call over to Ms. Elizabeth Bouquard, senior director Investor Relations at The Honest Company. Please go ahead.

請注意，今天的會議正在錄影。現在，我將把電話交給The Honest Company的投資者關係高級總監伊麗莎白·布誇德女士。請繼續。

Good afternoon, everyone. Thank you for joining our third quarter 2025 conference call. Joining me today are Carla Vernon, our Chief Executive Officer and Curtiss Bruce, our Chief Financial Officer.

大家下午好。感謝您參加我們2025年第三季電話會議。今天與我一同出席的有我們的執行長卡拉·弗農和財務長柯蒂斯·布魯斯。

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.

在開始之前，我想提醒各位，我們今天將發表一些符合聯邦證券法規定的前瞻性聲明，包括關於我們業務前景的聲明以及我們在今天發布的盈利報告中提到的其他事項。

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.

這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果與預期結果有重大差異。有關可能影響我們業績的風險因素的更詳細說明，請參閱我們今天發布的盈利報告以及我們向美國證券交易委員會提交的文件。

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.

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，除法律要求外，我們不承擔因新資訊或未來事件而修訂或公開披露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.

此外，在本次電話會議中，我們還將討論非GAAP財務指標，這些指標調整了我們的GAAP結果，以消除某些項目的影響。您可以在今天發布的獲利報告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指標與GAAP指標的調節表。

A live broadcast of this call, along with presentation slides that we reference in our prepared remarks are available on the investor relations section of our website at investors.honest.com.

本次電話會議的現場直播以及我們在準備好的發言稿中提到的演示文稿，都可以在我們網站的投資者關係部分（investors.honest.com）找到。

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

接下來，我將把電話交給卡拉。

Thanks, Elizabeth.

謝謝你，伊麗莎白。

Good afternoon, everyone, and thank you for joining us today.

各位下午好，感謝各位今天蒞臨。

Let me begin my comments by sharing an update on our third quarter. Our Q3 results faced a challenging consumer environment and market headwinds. Despite delivering key profitability metrics as expected, our revenue in the quarter came in below expectations.

首先，我想先報告我們第三季的最新情況。第三季業績面臨嚴峻的消費環境和市場逆風。儘管關鍵獲利指標均達到預期，但本季營收低於預期。

This revenue decline was due to the underperformance of our diapers and apparel categories which are experiencing the downward pressure of a challenging consumer macroeconomic environment. While we are disappointed with the revenue results, we continue to grow and outpace the market in our wipes and personal care categories.

這次營收下降是由於我們的尿布和服飾品類表現不佳，這兩個類別正面臨嚴峻的消費宏觀經濟環境所帶來的下行壓力。儘管我們對營收結果感到失望，但我們在濕紙巾和個人護理類別方面繼續保持成長，並超越市場平均水平。

We also stayed committed to disciplined execution, which delivered positive net income for the third consecutive quarter and adjusted EBITDA ahead of expectations. Having evaluated the drivers of diaper softness in the quarter, our team took actions quickly to strengthen our consumer value proposition through pricing, merchandizing, and size.

我們也堅持嚴謹的執行，連續第三個季度實現了正淨利潤，調整後 EBITDA 也超出了預期。在本季評估了影響尿布柔軟度的因素後，我們的團隊迅速採取行動，透過定價、商品陳列和尺寸來加強我們的消費者價值主張。

We have also focused investment and resources against our stronghold areas of wipes and baby personal care. I will share more details on these actions in a moment, but first I want to introduce an additional strategic program that we are taking to position Honest for profitable growth in 2026 and beyond.

我們也集中投資和資源，加強了我們在濕紙巾和嬰兒個人護理領域的優勢業務。稍後我會分享這些行動的更多細節，但首先我想介紹一下我們正在採取的一項額外戰略計劃，該計劃旨在使 Honest 在 2026 年及以後實現盈利增長。

Today we launched Transformation 2.0, powering Honest growth. This is a new and important step which allows us to sharpen our focus on growing the categories where we have a demonstrated right to win while also improving the profitability of Honest.

今天我們推出了 Transformation 2.0，助力企業實現誠實成長。這是一個新的、重要的步驟，使我們能夠更加專注於發展我們已經證明有權獲勝的類別，同時提高 Honest 的盈利能力。

“Powering Honest Growth" is a two-part transformation program that allows us to direct our resources to our core categories of wipes, personal care, and diapers, while exiting certain lower margin, non-strategic categories and channels.

「助力誠實成長」是一個分為兩部分的轉型計劃，使我們能夠將資源集中到濕紙巾、個人護理和尿布等核心類別，同時退出某些利潤較低、非策略性的類別和管道。

This includes exiting honest.com as a direct fulfillment website, exiting our relationship with our current apparel provider, and exiting Canada.

這包括停止將 honest.com 作為直接履行網站運營，終止與現有服裝供應商的合作關係，以及退出加拿大市場。

Because these categories are lower margin, exiting them only has a modest profit impact in the short-term. We are confident these changes will drive greater focus on our core product categories and enable continued growth and improved profit margins.

由於這些類別的利潤率較低，退出這些類別在短期內只會對利潤產生輕微影響。我們相信，這些變革將使我們更加專注於核心產品類別，並實現持續成長和利潤率的提高。

As we make these changes, we will be implementing cost optimization actions that lead to a simplified operating model, stronger financial foundation, and improved cost structure.

在進行這些變革的同時，我們將實施成本優化措施，從而簡化營運模式，增強財務基礎，並改善成本結構。

Curtiss will cover more of the details later in his remarks. Now allow me to share more specifics about our performance in the quarter.

柯蒂斯將在稍後的演講中詳細介紹。現在請容許我分享一下我們本季的業績詳情。

Let me begin with an overview of our key consumer indicators. First, our overall consumption for the quarter was up 2%, modestly trailing the overall category growth of 3%.

首先，讓我先概述一下我們的關鍵消費者指標。首先，本季我們的整體消費量成長了 2%，略低於該類別 3% 的整體成長。

When we dig further into this data, we see some important bright spots. In fact, if we look at our performance at Amazon, which is now our largest customer, Honest consumption growth is up 16% year over year.

當我們深入分析這些數據時，會發現一些重要的亮點。事實上，如果我們看一下我們在亞馬遜（我們現在最大的客戶）的表現，Honest 的消費成長比去年同期成長了 16%。

Our numerator household panel data indicates that more households are buying on its products. Our household penetration of 7.4% increased 80 basis points year over year, and our consumer loyalty to our Honest products is getting stronger. Our repeat rate of 32% increased 30 basis points versus the prior year.

我們的家庭面板數據顯示，越來越多的家庭正在購買其產品。我們的家庭滲透率達到 7.4%，較去年同期成長 80 個基點，消費者對我們 Honest 產品的忠誠度也越來越高。我們的回頭客比例為 32%，比前一年提高了 30 個基點。

And when we look at our consumption momentum, it's important to understand how our business is performing outside of our diaper decline. Diapers, the consumption on the remainder of the business was up a robust 13% in the quarter, outpacing our comparative categories at 5%.

當我們審視消費動能時，了解除尿布銷售下滑之外，我們業務的整體表現至關重要。尿布業務的消費量在本季強勁成長了 13%，超過了我們同類產品 5% 的成長速度。

To provide further insights on our performance, let's take a look at the core product categories of wipes, personal care, and diapers that are the focus of powering on growth. Our wipes and personal care categories performed strongly in the quarter. Combined wipes and personal care make up more than 50% of our revenue and are key drivers of our growth for the last nine months.

為了更深入地了解我們的業績，讓我們來看看推動成長的核心產品類別：濕紙巾、個人護理和尿布。本季度，我們的濕紙巾和個人護理用品類別表現強勁。濕紙巾和個人護理用品的銷售額占我們總收入的 50% 以上，並且是我們過去九個月成長的主要驅動力。

In particular, both our wipes and baby personal care categories delivered strong double-digit consumption growth this quarter, underscoring the continued consumer demand for the high-quality and cleanly designed formulas across these product lines.

尤其值得一提的是，本季我們的濕紙巾和嬰兒個人護理類別均實現了強勁的兩位數消費成長，凸顯了消費者對這些產品線中高品質、配方純淨的產品的持續需求。

Our wipes, which include items across all-purpose wipes, toddler and adult flushable wipes, hand sanitizing wipes, and makeup remover wipes, are now the largest piece of our portfolio, representing more than one third of our sales for the quarter.

我們的濕紙巾產品，包括多用途濕紙巾、幼兒和成人可沖散濕紙巾、洗手消毒濕紙巾和卸妝濕紙巾等，現在是我們產品組合中最大的部分，佔本季度銷售額的三分之一以上。

Consumption growth across our total wipes portfolio was up 24% versus category growth of 3%. And I'm proud to say our all-purpose wipes remain the leading natural baby wipes in the category. This quarter, we took an important step in expanding our flushable wipes in physical stores outside of the baby aisle.

我們所有濕紙巾產品的消費量成長了 24%，而該品類的成長率為 3%。我很自豪地說，我們的多用途濕紙巾仍然是該類別中領先的天然嬰兒濕紙巾。本季度，我們在實體店嬰兒用品區以外的區域推廣可沖散濕紙巾方面邁出了重要一步。

This expansion marks the launch of adult flushable wipes in high traffic aisles at brick and mortar stores including Target, HEB, and Harris Teeter. Our adult flushable wipes distinguished themselves by providing elegantly modern counter-worthy packaging that can be proudly displayed anywhere you want a cleanly designed flushable wipe.

此次擴張標誌著成人可沖散濕紙巾正式進入實體店人流量大的貨架區域，包括 Target、HEB 和 Harris Teeter 等。我們的成人可沖散濕紙巾以其優雅現代的櫃檯級包裝脫穎而出，您可以自豪地將其展示在任何您想要展示設計簡潔的可沖散濕巾的地方。

This launch continues our strategy to expand Honest into areas of the store that drive incremental foot traffic and household penetration beyond baby households. Year-to-date, Honest flushable wipes, consumption grew over 160% versus the category growth of 2%.

這次新品發布延續了我們將 Honest 品牌拓展至商店內能夠帶來更多客流量和提升家庭滲透率（除嬰兒家庭外）的策略。今年迄今為止，Honest 可沖散濕紙巾的消費量增加了 160% 以上，而該品類的成長率僅為 2%。

And, at Amazon, Honest adult flushable wipes are the fastest growing flushable wipe with subscriber growth up more than 100% year-to-date and have quickly climbed into the TOP10 items by market share in the personal cleansing wipes category.

在亞馬遜上，Honest 成人可沖散濕紙巾是成長最快的可沖散濕紙巾，今年迄今訂閱用戶成長超過 100%，並迅速躋身個人清潔濕紙巾類別市場份額前 10 名。

With the combined growth in e-commerce and brick and mortar retailers, our flushable wipes business is a promising addition to our wipes portfolio. We have also expanded the distribution of our sanitizing wipes into Walmart, adding more than 700 points of distribution.

隨著電子商務和實體零售商的共同成長，我們的可沖散濕紙巾業務將成為我們濕紙巾產品組合中一個很有前途的補充。我們也將消毒濕紙巾的銷售管道擴大到沃爾瑪，新增了 700 多個銷售點。

Our teams are supporting this expanded Wis distribution by elevating the role of these fast-growing businesses in our advertising, social media, and key retailer events.

我們的團隊正在透過提升這些快速成長的企業在我們廣告、社群媒體和主要零售商活動中的作用，來支持 Wis 的這種擴展分銷。

Next, let me share more about baby personal care, which now makes up about 20% of our revenue and is another area where we are performing well and believe we have the right to win. Our Baby Personal Care Collection is the #1 natural baby personal care brand in the United States, with consumption growth up 10% in a quarter, outpacing growth of the category which is up 2%.

接下來，我想和大家分享一下嬰兒個人護理方面的信息，這部分業務目前占我們收入的 20% 左右，也是我們表現良好的另一個領域，我們相信我們有實力贏得市場。我們的嬰兒個人護理系列是美國排名第一的天然嬰兒個人護理品牌，季度消費增長了 10%，超過了該類別 2% 的增長。

Within our baby personal care portfolio, our sensitive skin collection grew consumption 77% year-to-date. This strong growth is continued evidence that consumers are seeking effective and trustworthy solutions to meet the growing demand for sensitive skincare products.

在我們的嬰兒個人護理產品組合中，敏感肌膚系列產品的銷量年增了 77%。這一強勁成長持續證明，消費者正在尋求有效且值得信賴的解決方案，以滿足日益增長的敏感肌膚護理產品需求。

We know that sensitive skin affects more than 70% of adults, and that incidences of children with skin allergies have more than doubled since 1997. With our dedication to the Honest standard, which is a commitment we make to formulate our products, avoiding the use of 3,500 ingredients of concern.

我們知道，超過 70% 的成年人患有敏感肌膚，而自 1997 年以來，兒童皮膚過敏的發生率增加了一倍以上。我們秉承誠實標準，承諾在產品配方中避免使用 3,500 種令人擔憂的成分。

We are pleased that we continue to be a valuable solution to consumers with sensitive skin needs. Recent innovations and distribution gains position us to continue capturing growth in personal care. This quarter we are excited to share the launch of our first product collaboration with Disney across our baby personal care collection.

我們很高興能夠持續為有敏感肌膚需求的消費者提供有價值的解決方案。近期的創新和分銷管道的拓展使我們能夠繼續在個人護理領域實現成長。本季度，我們很高興地宣布與迪士尼合作推出首個嬰兒個人護理產品系列。

Disney is the leading revenue generating global licenser with their characters ranking as the most recognized for families and children ages two through three. And this collaboration marks on its first use of licensed characters in baby personal care.

迪士尼是全球領先的收入型授權商，其角色在兩到三歲的家庭和兒童中享有極高的知名度。此次合作標誌著該公司首次在嬰兒個人護理產品中使用授權卡通形象。

Across our shampoo, body wash, lotion, hair conditioner, and bubble bath items, we have introduced Mickey Mouse himself across two different fragrance collections. Mickey is on our sweet cream items that are sold individually, and he's featured on our lavender gift set in cozy settings perfect for bedtime.

我們在洗髮精、沐浴露、潤膚露、護髮素和泡泡浴產品中，推出了兩種不同的香氛系列，其中都融入了米奇老鼠的元素。米奇出現在我們單獨販售的甜奶油產品上，他也出現在我們溫馨舒適的薰衣草禮品組中，非常適合睡前享用。

We're delighted with the strong performance of this collaboration and the joy it has brought to our Honest community. For fans of unscented items, we also have a collection featuring Disney's Winnie the Pooh and some of Pooh's closest friends, Eeyore, Piglet, and my personal favorite, Tigger.

我們對這次合作所取得的優異成績以及它為Honest社群帶來的快樂感到非常高興。對於喜歡無香產品的愛好者，我們還有一個系列，以迪士尼的小熊維尼和維尼的一些好朋友為主題，包括屹耳、小豬，以及我個人最喜歡的跳跳虎。

With charming packaging, these Disney items make perfect gifts for baby showers and holiday moments. In support of the Q4 holiday season, we have a dedicated marketing plan to support these items across digital and retail.

這些迪士尼商品包裝精美，是嬰兒派對和節日送禮的完美選擇。為了支持第四季度假日季，我們制定了專門的行銷計劃，以在數位和零售通路推廣這些產品。

And now that you know more about these strengths in our portfolio, I'd like to address our performance in diapers, which continue to experience headwinds in the quarter.

現在您已經對我們投資組合中的這些優勢有了更多了解，我想談談我們在尿布業務方面的表現，該業務在本季度繼續面臨不利因素。

While no longer our largest category, diapers represent about 30% of our revenue and still plays an important strategic role in introducing new parents and some grandparents to Honest each year. In Q3, diapers were the leading driver of our revenue declines in the quarter. Let me walk you through some of the key drivers of our diaper declines.

雖然尿布不再是我們最大的品類，但它仍然占我們收入的 30% 左右，並且在每年向新父母和一些祖父母介紹 Honest 品牌方面仍然發揮著重要的戰略作用。第三季度，尿布是導致我們季度收入下降的主要原因。讓我帶您了解一下導致尿布使用量下降的一些關鍵因素。

For the quarter, our diaper consumption is down double-digits. This is largely driven by two key drivers. First is the assortment simplification of our diaper set at our largest brick and mortar retailer. As we shared previously, the SKU reduction at this retailer resulted in the elimination of the gender-specific diaper prints to streamline the set to focus on gender neutral designs.

本季度，我們的尿布消耗量下降了兩位數。這主要受兩個關鍵因素驅動。首先，我們簡化了旗下最大實體零售商的尿布套裝的種類。正如我們之前分享的那樣，這家零售商減少了 SKU，取消了特定性別的尿布圖案，以簡化產品系列，專注於中性設計。

It is worth noting that the gender-specific diapers remain available in e-commerce and across other brick and mortar retailers. Second is the lapping of two large customer-specific promotional events that were not repeated in the quarter at our two largest brick and mortar retailers.

值得注意的是，分性別的尿佈在電子商務和其他實體零售商處仍然有售。其次，我們最大的兩家實體零售商在本季沒有重複舉辦兩項大型客戶特定促銷活動。

In addition to these two drivers, the pressures in the consumer macroeconomic landscape are impacting consumers' shopping behaviors.

除了這兩個因素之外，消費者宏觀經濟環境的壓力也在影響消費者的購物行為。

As consumers have become more value and price conscious, we are seeing an impact in the diaper category, which is also down 2% for the year. Across the category, most major national brands are declining as consumers are shifting their purchases to lower priced items.

隨著消費者越來越注重價值和價格，我們看到尿布類別也受到了影響，今年該類別的銷售額也下降了 2%。在整個品類中，大多數主要全國性品牌的銷售量都在下滑，因為消費者正在將購買重點轉向價格較低的商品。

Because of the increased importance of price and value, we're taking actions to improve our value to diaper shoppers. These actions include introducing a significantly improved diaper that is superior to our previous designs, ensuring that we continue to deliver product quality that meets consumer expectations.

由於價格和價值的重要性日益增加，我們正在採取措施提高我們對尿布消費者的價值。這些措施包括推出一款性能顯著提升的尿布，其性能優於我們先前的設計，確保我們繼續提供符合消費者期望的高品質產品。

As you recall, we launched these design improvements last quarter, which included enhanced comfort dry technology for up to 100% leak protection, softer layers, and a better fit with comfort stretched across the waist tabs and legs.

您可能還記得，我們​​在上個季度推出了這些設計改進，其中包括增強的舒適乾爽技術，可實現高達 100% 的防漏保護，更柔軟的內層，以及更好的貼合度，腰部和腿部採用彈性設計，穿著更舒適。

According to our in-house quality team, our diaper consumer complaints are down 21% versus last year. While this is promising, we're still in the early stages of assessing the new diaper's marketplace performance.

據我們內部品質團隊稱，我們的尿布消費者投訴比去年下降了 21%。雖然這令人鼓舞，但我們仍處於評估這款新型尿布市場表現的早期階段。

Beyond improvements to our diaper's quality, we have increased investment in a variety of pricing levers across merchandizing, promotions, and everyday price. With these investments in price value, we've seen positive early results in the velocities with one of our key national retailers.

除了提高尿布的品質外，我們還加大了對各種定價手段的投入，包括商品銷售、促銷和日常價格。透過這些對價格價值的投資，我們已經從與一家主要全國零售商的交易速度中看到了積極的早期成果。

We're now applying these improved price value strategies more broadly across the market. Additionally, we introduced a smaller pack size to offer a lower entry price for cost conscious consumers. While the declines in our diaper business have been significant in our brick-and-mortar retailers, our diaper business is growing 3% year-to-date at our largest customer.

我們現在正將這些改進後的價格價值策略更廣泛地應用於整個市場。此外，我們也推出了更小的包裝規格，為注重成本的消費者提供更低的入門價格。雖然我們在實體零售商處的尿布業務下滑幅度很大，但我們最大的客戶的尿布業務今年迄今成長了 3%。

The actions we have taken to improve our diaper business demonstrate we are committed to having a very compelling diaper offering to serve Honest families and welcome new households to the Honest brand. Across the journey of improving and strengthening the Honest Company over the last few years, we have demonstrated the ability to make market progress on growing the Honest brand and strengthening our financial foundation, and we're not finished.

我們為改善尿布業務所採取的行動表明，我們致力於提供極具吸引力的尿布產品，服務於 Honest 的家庭，並歡迎新家庭加入 Honest 品牌。在過去幾年中，我們不斷改進和加強 Honest 公司，並已證明我們有能力在發展 Honest 品牌和加強財務基礎方面取得市場進展，而我們的旅程尚未結束。

Our first transformation initiative succeeded in changing the business's financial trajectory by preserving cash, boosting profitability, and embedding strong financial rigor across the organization. In fact, over the last two and half years, I'm proud that our teams have significantly improved key metrics including improving gross margin by over 1,300 basis points, improving our cash position from $9 million to $71 million and achieving eight quarters in a row of positive adjusted EBITA.

我們的第一個轉型計劃成功地改變了企業的財務軌跡，透過保留現金、提高盈利能力以及在整個組織中建立嚴格的財務紀律來實現這一目標。事實上，在過去的兩年半里，我為我們的團隊在關鍵指標上取得的顯著進步感到自豪，包括毛利率提高了 1300 多個基點，現金狀況從 900 萬美元增加到 7100 萬美元，以及連續八個季度實現調整後 EBITA 為正。

Before I turn it over to Curtiss, I want to be clear that we are committed to making the improvements needed to address the declines in our diaper business through swift actions in the year and by streamlining our focus against our key categories of wipes, personal care, and diapers.

在將發言權交給柯蒂斯之前，我想明確表示，我們致力於透過今年迅速採取行動，並精簡業務重心，專注於濕巾、個人護理和尿布這三大關鍵類別，來改進尿布業務，以應對業務下滑的局面。

As our teams continue to execute with excellence, I remain confident in our ability to drive long-term value and growth for our shareholders while building the scale and power of the Honest brand.

隨著我們團隊繼續出色地執行各項任務，我對我們有能力為股東創造長期價值和成長，同時提升 Honest 品牌的規模和實力充滿信心。

Now, I will turn it over to Curtiss to share more details.

現在，我將把麥克風交給柯蒂斯，讓他分享更多細節。

Thank you, Carla, and welcome everyone.

謝謝卡拉，也歡迎各位。

First, I will discuss our third quarter results. Second, I will share more details on our transformation 2.0, powering Honest growth. Third, I will provide our outlook for the remainder of the year. In the third quarter, we delivered revenue of $93 million down 7%, driven by a decline in diapers, apparel, and Honest.com.

首先，我將談談我們第三季的業績。其次，我將分享更多關於我們轉型 2.0 的細節，這將推動 Honest 的成長。第三，我將展望今年剩餘時間的情況。第三季度，我們實現了 9,300 萬美元的收入，下降了 7%，主要原因是尿布、服裝和 Honest.com 的銷售額下降。

As a reminder of what Carla stated in her remarks earlier, we were lacking the highest growth quarter from last year, up 15%, which included two large promotional events with our two largest brick and mortar retailers.

正如卡拉在先前的演講中所提到的，我們缺少去年同期成長最快的季度（成長 15%），其中包括與我們最大的兩家實體零售商合作舉辦的兩項大型促銷活動。

We also saw headwinds related to the simplification of our assortment at our largest brick and mortar retailer, and finally, we also saw declines in apparel. In the quarter, our revenue was also down due to declines on Honest.com., which is about 10% of the business and down 23% versus last year.

我們也看到，由於我們最大的實體零售商簡化了商品種類，也出現了一些不利因素；最後，服裝銷售額也出現了下滑。本季，由於 Honest.com 的業務下滑，我們的營收也隨之下降。 Honest.com 的業務約佔公司總業務的 10%，與去年同期相比下降了 23%。

That the emphasis on this business was a strategic choice for us as we shifted away from lower margin channels. Revenue growth in wis was not enough to offset the previously mentioned declines. Gross margin in the third quarter was 37%, down 140 basis points versus last year.

重視這項業務是我們逐步減少低利潤管道的策略選擇。威斯康辛州的收入成長不足以抵銷前面提到的下滑。第三季毛利率為37%，較去年同期下降140個基點。

In the quarter, the gross margin decline was primarily due to tariff costs and the impact of the leverage from lower volume. These impacts were partially offset by lower trade spin and favorable product mix. And now turning to operating expenses decreased $4 million compared to the prior year quarter and decrease 170 basis points as a percentage of revenue.

本季毛利率下降主要是關稅成本和銷售下降帶來的槓桿效應。這些影響部分被較低的貿易宣傳和有利的產品組合所抵消。現在來看營運費用，與上一季相比減少了 400 萬美元，佔營收的百分比下降了 170 個基點。

This decrease in operating expenses was largely attributed to a decrease in SG&A expenses of $6 billion compared to last year. This was partially offset by an increase in marketing expenses of $1.6 million to support our new diper launch.

營運費用的下降主要歸功於銷售、管理及行政費用比去年減少了 60 億美元。為了支持我們新推出的尿布，行銷費用增加了 160 萬美元，部分抵消了上述支出。

We also delivered positive net income of approximately $1 million. Adjusted EBITDA for the third quarter was $4 million down $3.5 million versus last year due to lower year over year add backs. Adjusted EBITDA margin was 4%.

我們還實現了約 100 萬美元的淨利潤。第三季調整後 EBITDA 為 400 萬美元，比去年同期減少 350 萬美元，原因是年比調整項減少。調整後 EBITDA 利潤率為 4%。

We maintained a healthy balance sheet ending the quarter with $71 million in cash and no debt outstanding. Our cash position continues to benefit from a capital-like business model giving us flexibility. Our free cash flow was down versus last year, largely due to higher inventory.

本季末，我們維持了健康的資產負債表，擁有7,100萬美元現金，且無未償債務。我們的現金狀況持續受益於類似資本的商業模式，這賦予了我們靈活性。由於庫存增加，我們的自由現金流較去年下降。

Our higher inventory is largely a result of our tariff mitigation strategies and transition to our new diapers. In line with our focus on operating discipline, we will continue to manage our inventory levels carefully.

我們庫存增加主要是由於我們的關稅緩解策略以及向新型尿布的過渡。秉承我們注重營運紀律的原則，我們將繼續謹慎管理庫存水準。

Next, I would like to provide more color on our Transformation 2.0 powering Honest growth. This transformation is aimed at improving simplicity, focus, and profitability of the enterprise. The transformation will have two main components that are also outlined in our investor presentation on slide 5.

接下來，我想更詳細地介紹我們推動 Honest 成長的 Transformation 2.0。此次轉型旨在提高企業的簡潔性、專注度和獲利能力。此次轉型將包含兩個主要部分，我們在投資者簡報的第 5 頁也對此進行了概述。

Part one, to drive greater focus and growth on our fastest growing, more profitable, and most important categories of wipes, personal care, and diapers, we're making three important changes.

第一部分，為了更專注於我們成長最快、利潤最高、最重要的濕紙巾、個人護理和尿布類別，我們正在做出三個重要改變。

First, by the end of this year, we will exit Honest.com. as a direct-to-consumer fulfillment channel, but we will maintain the ability to direct purchases to leading retailers and remain a resource for educating consumers. This change is a reflection of shifts in consumer shopping behavior and a resource intensive and low margin fulfillment model.

首先，到今年年底，我們將停止透過 Honest.com 直接面向消費者的配送管道，但我們將保留引導消費者向領先零售商購買商品的能力，並繼續為消費者提供教育資源。這項變化反映了消費者購物行為的轉變以及資源密集、低利潤的物流模式。

Second, we will also be exiting our apparel partnership as a fully owned product category, as this is a complex and profit-dilusive part of our business.

其次，我們將退出服裝領域的合作關係，不再將其作為我們完全擁有的產品類別，因為這是我們業務中複雜且利潤分散的部分。

And third, we are exiting direct sales to Canadian retailers. This was a self-scale, low margin part of our business, which added to the complexity of incremental inventory. And now part two of the transformation, we will be optimizing our cost structure by right-sizing SG&A and implementing supply chain efficiencies.

第三，我們將退出直接向加拿大零售商銷售產品的業務。這是我們業務中規模較小、利潤率較低的部分，這增加了增量庫存的複雜性。現在進入轉型的第二部分，我們將透過合理調整銷售、管理及行政費用和提高供應鏈效率來優化成本結構。

As we simplify our business, we are reducing our SG&A to align with a more streamlined business model and increased focus on core product categories. Concurrently, we're taking steps to optimize our supply chain footprint and inventory management along with leveraging technology to improve systems to maximize efficiency across the entire organization.

隨著我們簡化業務，我們正在減少銷售、一般及行政費用，以適應更精簡的業務模式，並更加專注於核心產品類別。同時，我們正在採取措施優化供應鏈佈局和庫存管理，並利用技術改進系統，以最大限度地提高整個組織的效率。

Collectively, these strategic actions will result in one-time costs related to transformation 2.0 of $25million to $35 million and return approximately $8million to $15 million of annual cost savings. We believe that these changes will lay the foundation for a stronger and more efficient.

這些策略舉措總體上將帶來與轉型 2.0 相關的 2,500 萬至 3,500 萬美元的一次性成本，並帶來每年約 800 萬至 1,500 萬美元的成本節約。我們相信，這些變革將為建立一個更強大、更有效率的國家奠定基礎。

Next, I will share the financial outlook, which you can also find on slide 13 of our investor presentation. For our 2025 outlook, I will provide a view in two ways. First, I will provide a view of the full business on an as-reported basis.

接下來，我將分享財務展望，您也可以在我們的投資者簡報第 13 頁上找到相關資訊。對於我們對 2025 年的展望，我將從兩個方面提供觀點。首先，我將根據報告內容，對整個業務狀況進行概述。

Second, I will provide an organic revenue outlook which excludes revenue from the categories and channels we are exiting as part of power and Honest this growth. We have provided a full reconciliation of revenue to organic revenue on slide 15 in our investor presentation.

其次，我將提供一個有機收入展望，其中不包括我們正在退出的類別和管道的收入，這是成長動力和誠實的一部分。我們在投資者簡報的第 15 頁提供了收入與有機收入的完整對比。

We are lowering our four-year guidance for revenue and adjusted EBITDA. Our full-year 2025 financial outlook for revenue and adjusted EBITDA includes.

我們將下調未來​​四年營收和調整後 EBITDA 的預期。我們對 2025 年全年營收和調整後 EBITDA 的財務展望包括：

Revenue outlook, as reported, inclusive of apparel, honest.com, and Canada is now in the range of 3% to flat. This is driven by potential disruptions to revenue related to the wind down of strategic exits and anticipated declines in diaper revenue.

據報道，包括服裝、honest.com 和加拿大在內的收入前景目前在 3% 到持平的範圍內。這是由於策略性退出逐步結束以及尿布收入預期下降可能導致收入中斷所致。

Revenue outlook on an organic basis, excluding apparel on honest.com and Canada is for growth in the range of 4% to 6% year over year. To provide more context, organic revenue year-to-date grew 6%. And adjust the EBITDA to be in the range of $21 million to $23 million.

不計 honest.com 和加拿大地區的服裝銷售，有機收入預期年增 4% 至 6%。為了提供更多背景信息，今年迄今為止的有機收入增長了 6%。將 EBITDA 調整至 2,100 萬美元至 2,300 萬美元之間。

First, the original range of $27 million to $30 million. Our adjusted EBITDA outlook is lower primarily due to lower revenue and volume de leverage. In closing, we are proud of the continued strength of the Honest brand and our core categories that have clear bright spots, including double-digit consumption growth and wipes and baby personal care, underscored by our strong year over year increases in key consumer engagement metrics.

首先，最初的範圍是 2700 萬美元到 3000 萬美元。我們調整後的 EBITDA 預期下調，主要是因為收入和銷售下降導致槓桿效應減弱。最後，我們為 Honest 品牌持續強勁的勢頭以及我們核心品類的明顯亮點感到自豪，包括兩位數的消費增長以及濕巾和嬰兒個人護理產品，關鍵消費者參與度指標的強勁同比增長也印證了這一點。

We are committed to making improvements in our diaper category in order to have a compelling diaper offering critical to welcoming new households to the Honest brand. With the launch of Transformation 2.0, powering on growth, our teams remain focused and disciplined to execute our strategy.

我們致力於改進我們的尿布類別，以便提供極具吸引力的尿布產品，這對於吸引新家庭加入 Honest 品牌至關重要。隨著轉型 2.0 的啟動，在成長的推動下，我們的團隊保持專注和自律，以執行我們的策略。

Together, Carla, the Honest Team and I are committed to driving sustainable growth and building lasting value for our consumers and shareholders.

我和卡拉、Honest 團隊一起致力於推動永續成長，並為我們的消費者和股東創造持久價值。

Thank you to our Honest team for their continued hard work and dedication this year. With that, thank you for joining our call today. Now I will turn the call back to the operator.

感謝我們Honest團隊今年以來的持續努力和奉獻。感謝各位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)

（操作說明）

Our first question comes from the line of Aaron Grey with AGP.

我們的第一個問題來自 Aaron Grey 的 AGP 系列。

Hi, good evening and thank you for the questions.

您好，晚上好，感謝您的提問。

First question for me just comes on Transformation 2.0. So, Transformation 1.0 obviously came at a time when you guys were unprofitable and had a weak balance sheet, now you're profitable with a stronger balance sheet. So, first question is, why the decision to make this now and then how do you feel like this positions you to unlock greater growth opportunities going forward?

我的第一個問題是關於轉型 2.0 的。轉型 1.0 顯然是在你們虧損且資產負債表薄弱的時候推出的，現在你們獲利了，資產負債表也更穩健了。所以，第一個問題是，為什麼現在要做這個決定？其次，你覺得這如何能讓你在未來獲得更大的發展機會？

Thank you.

謝謝。

Hi, Aaron, thanks so much. I appreciate you. Really reminding us in the progress that we've made on the first phase of transforming the Honest Company was so important, as you said, to improve the business model, improve profitability in our financial foundation.

嗨，亞倫，非常感謝。我很感激你。正如您所說，提醒我們誠實公司轉型第一階段所取得的進展非常重要，這有助於改善商業模式，提高財務基礎的獲利能力。

As we look at what will enable the future growth for Honest, it's really still grounded in the pillars we articulated where we believe there is much more opportunity to scale this brand with our brand maximization and continue to be disciplined about how we operate the business model with our margin enhancement pillar.

當我們展望 Honest 的未來發展時，它仍然根植於我們闡述的支柱，我們相信，透過品牌最大化，以及繼續嚴格執行我們的商業模式並提高利潤率，這個品牌還有更大的發展空間。

So, with that we really looked at where we have the right to win the categories that are best poised to be very resonant with consumers. Get the opportunity and provide us that strength from a profitability perspective, higher margin and higher profit.

因此，我們認真研究了我們有權在哪些類別中贏得勝利，這些類別最有可能引起消費者的共鳴。抓住機會，從獲利能力、更高利潤率和更高利潤的角度為我們帶來優勢。

When we look at the group of categories that we are going to focus on of wipes, personal care, and diapers, which we're calling our organic portfolio, that business is actually up 6% year-to-date in a time that we know that macroeconomic conditions are very challenging.

當我們審視我們將要重點關注的濕紙巾、個人護理和尿布這幾類產品（我們稱之為我們的有機產品組合）時，我們發現，在宏觀經濟形勢非常嚴峻的時期，該業務今年迄今為止的增長率實際上達到了 6%。

Our wipes business is growing double-digit, baby personal care, so we know that if we continue to simplify the focus of our resources and dial up the attention and the focus on those brands, they're very well poised to grow. One of the other things that I think our transformation journey's shown us is for Honest, there's a real cost to complexity.

我們的濕紙巾業務和嬰兒個人護理業務都實現了兩位數的成長，因此我們知道，如果我們繼續簡化資源投入，加大對這些品牌的關注和投入，它們就很有可能實現成長。我認為，我們的轉型之旅也向我們展示了一件事，那就是對 Honest 來說，複雜性是有代價的。

We've been a complex business, and we've been simplifying it over the few years, we are finding for us it's true that less is more. It drives greater focus for us about how we drive the advantage and scale that we're looking for. So that's what is the underlying philosophy behind powering H1st growth, allowing us to make sure we focus our resources to drive against these clear places where we have the right to win.

我們一直以來都是一家業務複雜的公司，在過去的幾年裡，我們一直在簡化業務，我們發現「少即是多」的道理對我們來說確實適用。這促使我們更加專注於如何實現我們所追求的優勢和規模。這就是推動 H1st 成長的根本理念，使我們能夠確保將資源集中投入到我們有把握獲勝的明確領域。

Okay, great. I appreciate that color there, Carla, and second one for me, just diving a bit deeper into diapers which remains cool for you guys. How should we think about the redesign and how that's helped some of the velocity changes? I know it's still a little bit earlier.

好的，太好了。卡拉，我很喜歡這個顏色，這是我的第二個選擇，只是稍微深入研究一下尿布，這對你們來說仍然很酷。我們應該如何看待重新設計以及它如何幫助解決速度變化問題？我知道現在還早了一點。

And then in reference to prepared remarks, it sounds like you made some price value adjustments for one of the retailers that helped to drive velocity. So just some more color on that and how we're thinking about the diaper designs and maybe the price GAAP evolution, which I think you alluded to doing a test for during the quarter.

至於事先準備好的發言稿，聽起來你對其中一家零售商的價格做了一些調整，這有助於提高銷售速度。所以，再補充一些細節，說說我們如何考慮尿布設計，以及價格 GAAP 的演變，我想您之前提到過，本季會對此進行測試。

So how we should think about that going forward would be helpful. Thank you.

那麼，我們應該如何看待這個問題，將會很有幫助。謝謝。

Great. Well, I just talked about the powering Honest Growth program that we've introduced, and one of the things I want to make sure is very clear to everyone, diapers has a key role in this transformation program that we're talking about because when I think about the diaper category for Honest, diapers plays a very important role for us strategically.

偉大的。我剛才談到了我們推出的“誠實成長計劃”，我想確保每個人都清楚的一點是，尿佈在我們正在談論的這個轉型計劃中扮演著關鍵角色，因為當我想到誠實品牌的尿布品類時，尿佈在戰略上對我們至關重要。

This is a category that allows us to welcome new consumers, households, shoppers into the Honest portfolio, because that entry and life stage change of having your first baby and really exploring new products works well at a time when you're seeking new solutions.

這個類別讓我們能夠歡迎新的消費者、家庭和購物者加入 Honest 的產品組合，因為在迎來第一個寶寶並真正探索新產品的這段時間裡，這種進入人生新階段的變化非常適合尋求新的解決方案。

And then for us specifically, the core benefits that Honest focuses on of clean products and good for sensitive skin, it just makes sense for us that that's a category where we can meet new consumers when they're at a time of life where they're looking for that and where it's never been more important for them.

而對我們來說，Honest 專注於清潔產品和適合敏感肌膚的核心優勢，這讓我們覺得，在這個消費者正在尋找這類產品，並且對他們來說比以往任何時候都更加重要的時期，我們可以在這個品類中結識新的消費者，這很有意義。

And sensitive, so we really think this category is important to us.

而且這個類別很敏感，所以我們真的認為它對我們來說很重要。

When we look at how our diaper business is doing now, you are right. We we think that there are a few important areas to address for diapers. We are not satisfied with how our diaper performance is overall, but the first step for us was to introduce that new better diaper.

從我們目前的尿布業務狀況來看，你是對的。我們認為，尿布領域有幾個重要面向需要關注。我們對目前尿布的整體性能並不滿意，但我們邁出的第一步是推出這款性能更佳的新型尿布。

I think I mentioned in the script it is early still because the inventory it was a flow in, so the inventory had to really settle out. I think we're quite well advanced now on seeing that as the majority of diapers on the shelf. And when we look at our customer complaints, our consumer complaints are down 21% year-to-date for our diaper business. So that's a really good sign.

我想我在劇本裡提到過，現在還為時過早，因為庫存是逐步到貨的，所以庫存還需要一段時間才能穩定下來。我認為我們現在已經相當成功地認識到，貨架上的大多數尿布都屬於這種情況。當我們查看客戶投訴時，發現我們尿布業務的消費者投訴量今年迄今下降了 21%。所以這真是個好兆頭。

The other thing that gives us real encourage. Is our diaper business at Amazon, which Amazon is now our largest retailer. Year-to-date, our diaper business is up 3% at Amazon. So that shows us that with a consumer that's highly omnichannel, highly digital oriented, which has always been right for the Honest brand, the diaper business is working very well.

還有一件事真的讓我們備受鼓舞。我們在亞馬遜的尿布業務，亞馬遜現在是我們最大的零售商。今年迄今為止，我們在亞馬遜上的尿布業務成長了 3%。這表明，對於高度全通路、高度數位化的消費者而言（這始終符合 Honest 品牌的需求），尿布業務發展得非常好。

And one of the things that's unique about Amazon, as you may recall, one of the reasons our core businesses down so much at Target is because they made a choice to simplify their portfolio with the gendered prints and really focus on gender neutral prints at Amazon, where we are growing 3% year-to-date, we still have our gendered prints.

你可能還記得，亞馬遜的獨特之處在於，我們在 Target 的核心業務大幅下滑的原因之一是，他們選擇簡化產品組合，減少性別化的印花圖案，而真正專注於中性印花圖案。在亞馬遜，我們今年迄今成長了 3%，我們仍然保留了性別化的印花圖案。

We still have our full selection, so we're learning a lot about what works for our diaper consumer and how incremental those prints are the thing that's important right now is as consumers are experiencing these macroeconomic pressures, we wanted to make sure that we were addressing the pricing concerns that we are seeing as we're seeing diaper category purchases shift from all the major national brands to the low cost brands.

我們仍然提供全系列產品，因此我們正在深入了解哪些產品適合我們的尿布消費者，以及這些印花圖案的增量有多大。目前重要的是，由於消費者正在經歷這些宏觀經濟壓力，我們希望確保我們能夠解決我們看到的價格問題，因為我們看到尿布類別的購買正在從所有主要的全國性品牌轉向低成本品牌。

So, we have introduced pricing in a variety of forms at shelf. We've seen some pricing velocity work when we're addressing absolute price point that we're seeing on the shelf with one of our major customers. So, we are looking at how we need to apply that more broadly.

因此，我們在貨架上引入了多種形式的定價。我們發現，當我們與一位主要客戶合作，解決貨架上出現的絕對價格問題時，價格速度策略會起到一定作用。所以，我們正在研究如何更廣泛地應用這個理念。

And then we have done price pack architecture work. The price pack architecture work includes creating some lower entry point price point diapers because originally our Honest diapers had some pretty steep pricing that's a little bit difficult for families to embrace under these conditions, so we're very pleased that we've this like 1999 price point diaper to allow more purchases at entry.

然後我們完成了價格方案架構的工作。價格包裝架構工作包括創造一些入門級價格更低的尿布，因為我們最初的 Honest 尿布定價相當高，在目前的情況下，很多家庭難以接受，所以我們很高興推出了這款價格類似於 1999 美元的尿布，以便讓更多人能夠入門購買。

So, for us, as you can see, we're trying to address the two things that really drive price value. That is what does it feel like to pay for the diaper and is the diaper worth it when you get it? And that's what we're going to continue to do.

所以，正如你所看到的，我們正在努力解決真正影響價格價值的兩個因素。花錢買尿布是什麼感覺？買到手的尿布值不值這個價？而這正是我們將繼續做的事情。

That's helpful color. I really appreciate that, Carla. I'll go and jump back in the queue.

這是個很有幫助的顏色。卡拉，我真的很感激。我這就重新排隊。

Thank you. And our next question comes from the line of Anna Glaskin with B. Riley Securities.

謝謝。下一個問題來自 B. Riley Securities 的 Anna Glaskin。

Thanks for taking my question. Good afternoon, guys. I guess I'd like to turn back to, diapers. Clearly very competitive, on the one hand, you introduced new innovation with the diaper reset, so you would think that that would be a catalyst for share, but then on the other hand, you have a lot of competition, particularly at the lower end, and you have a more price sensitive consumer.

謝謝您回答我的問題。下午好，各位。我想我還是會選擇用回尿布。顯然競爭非常激烈，一方面，你們推出了尿布重置的新創新，所以你可能會認為這會成為市場份額增長的催化劑，但另一方面，你們面臨著很多競爭，尤其是在低端市場，而且你們的消費者對價格更加敏感。

I guess bigger picture, how are you thinking about the best way to compete in a category where maybe innovation isn't getting as rewarded as we would have thought previously, just any bigger picture, thoughts there.

我想從更宏觀的角度來看，你認為在這樣一個創新可能沒有像我們之前認為的那樣得到獎勵的領域中，最好的競爭方式是什麼？只是想從更宏觀的角度談談你的想法。

Sure, well. I think one of the things that's sometimes masking our overall diaper performance is that the diaper issues we're facing at Target unique to this quarter. I just want to remind part of the declines in our diaper business that we're seeing this quarter are because we're lapping that promotional. The event that we did a one-time only event last quarter this time at Target, and we didn't repeat it.

當然可以。我認為，有時掩蓋我們整體尿布銷售業績的因素之一是，Target 在本季面臨的尿布問題是獨有的。我只想提醒大家，本季我們尿布業務下滑的部分原因是促銷活動已經結束。上個季度我們在 Target 舉辦了一次活動，但這次我們沒有再舉辦。

So, we've seen that in the quarter. We are also experiencing the loss of the gender print. So, when I look at our diaper business at Target versus at the Market X target, it's really quiet a tale of two cities outside of Target, year-to-date, the Honest diaper business is up 5% consumption.

所以，我們在本季已經看到了這一點。我們也正經歷性別標識消失的現象。所以，當我比較我們在 Target 和 Market X Target 的尿布業務時，就會發現情況截然不同。在 Target 以外的城市，今年迄今為止，Honest 尿布業務的消費量增加了 5%。

So that tells us that we are providing a diaper that is very meaningful in the market. When we think about the new and improved diaper innovation, I think it just takes a while because sometimes people have those diapers in their house already and you have to kind of work through that those diaper purchases that are at your house. So, we look to be continuing to watch the results of the new and improved diaper, but I'm very encouraged by the fact that the complaints are down 21% for the.

這說明我們提供的尿佈在市場上非常有價值。當我們想到新型改良的尿布創新時，我認為這需要一段時間，因為有時人們家裡已經有了這些尿布，你必須先處理家裡現有的尿布。所以，我們將繼續觀察這款新型改良尿布的效果，但令我非常鼓舞的是，投訴量下降了 21%。

Yeah Carla, I just want to clarify I misheard. I think you said that x target diapers consumption was up 5%, but I think earlier you said Amazon was up 3% year-to-date. So, is there a channel that's outgrowing Amazon?

是的，卡拉，我只是想澄清一下，我聽錯了。我想你之前說過，目標尿布的消費量增加了 5%，但我想你之前說過，亞馬遜今年迄今的消費量增加了 3%。那麼，是否存在發展速度超過亞馬遜的管道呢？

That's a great question. And so, I just want to make sure that I'm getting my math right, what I was talking about with the 3%, and if I said it wrong, then please forgive me. Amazon is up 3% in the quarter and year-to-date they've had stronger growth at the first half of the year and year-to-date X Target, our total diaper business is up 5% in consumption. I, so forgive me if I didn't say that correctly the first time.

這是一個很好的問題。所以，我只是想確認一下我的計算是否正確，我剛才說的3%是什麼意思，如果我說錯了，請原諒我。亞馬遜本季和年初至今成長了 3%，上半年和年初至今的成長更為強勁。與 Target 相比，我們的尿布業務總消費量成長了 5%。如果我第一次沒說清楚，請原諒。

Okay, so the 3% was specific to the quarter, so the quarter three and four are not comparable. Okay, that's right, okay, perfect.

好的，所以 3% 是針對該季度的，因此第三季和第四季的數據不具有可比性。好的，沒錯，好的，完美。

And some of that also is due to as Amazon was, flowing in the new diaper in this quarter, as we can see sometimes there's just a little bit of noise in the numbers in the quarter as you transition into the new diaper, so they had a stronger front half and then that's the quarter.

部分原因也是因為亞馬遜在本季度引入了新的產品線，正如我們所看到的，在過渡到新產品線時，季度數據有時會出現一些波動，所以他們上半年表現更強勁，然後就是本季度。

Got it. Yeah, because I was going to ask, clearly Amazon is the highest growing channel for a lot of companies, across the board. Is there any way to share what X Target and X-Amazon, what that other retailer block is kind of growing out? Are they more consistent with Target or is it more consistent with, maybe a low single-digit decline or, flattish?

知道了。是的，因為我正想問，很明顯，亞馬遜是很多公司成長最快的管道，各方面都是如此。有沒有辦法分享 X Target 和 X-Amazon，以及其他零售商正在成長的部分？它們更符合目標預期，還是更符合個位數低幅的下降或持平的預期？

Yeah, I don't really have that information handy with me, but let's make sure we just do a follow-up.

是的，我手頭上沒有相關信息，但我們還是應該跟進一下。

Okay. Thanks, Carla.

好的。謝謝你，卡拉。

Thank you.

謝謝。

Thank you.

謝謝。

And our next question comes from the line of Owen Rickert with Northland Capital Markets.

下一個問題來自 Northland Capital Markets 的 Owen Rickert。

Hi Carla. Hi. Curtiss. Thanks for taking my question here. What's the timeline in sequencing for these exits? Are you winding them all down in four or will this extend into the first half of 26?

你好，卡拉。你好。柯蒂斯。感謝您接受我的問題。這些退出機制的實施時間表是什麼？你是打算在四天內全部結束，還是會持續到26年上半年？

Yeah, thank you for the question. As we talk about the empowering the empowering Honest Growth program, focusing on the core categories of wis personal care and diapers with the exit of the low margin non-strategic categories. honest.com, we expect to wind down by the end of this year.

是的，謝謝你的提問。我們正在討論賦能型的Honest Growth計劃，該計劃專注於個人護理和尿布等核心品類，同時退出低利潤的非戰略性品類。 honest.com預計今年底結束。

And then we will be pivoting to what we call a pass-through site for sales. Canada, we expect to wind down by the end of this year as well, and we are also exiting the apparel partnership. Again, we expect that wind down to take place by the end of this fiscal year as well.

然後我們將轉型為我們所謂的銷售轉售網站。預計到今年年底，我們在加拿大的業務也將逐步結束，同時我們也將退出服裝業的合作關係。我們預計，這項逐步結束的進程也將在本財政年度結束前完成。

No, I just want to add, the second part of the program is about optimizing the cost structure to align with the new sizes of the business and to align with the strategy. And so we will start seeing expenses related to the transformation program in Q4 and then the execution and the savings beginning in 2026.

不，我只想補充一點，該計劃的第二部分是關於優化成本結構，使其與企業的新規模和策略保持一致。因此，我們將在第四季度開始看到與轉型計劃相關的支出，然後從 2026 年開始看到執行和節省。

Got it thanks. And then quickly I guess how are you handling some of that existing inventory maybe in the apparel business and and fulfillment commitments for these exits?

明白了，謝謝。那麼，我想快速了解一下，你們是如何處理服裝業務中現有的一些庫存，以及這些退出項​​目的履行承諾的？

Yeah, we have a strategy to wind those down in a very efficient and effective way, and the One-time cost that we provided the $25million to $35 million is inclusive of any of that sort of hangover that you might be alluding to.

是的，我們有一套非常高效且有效的策略來逐步結束這些項目，我們提供的 2500 萬至 3500 萬美元的一次性費用包含了您可能提到的任何後續影響。

Our next question comes from the line of Shovana Chowdhury with J.P. Morgan.

我們的下一個問題來自 Shovana Chowdhury 與 J.P. Morgan 的合作。

Hi, thanks for taking our question. I was just wondering a couple of questions. First of all, we are hearing of a heightened promotional environment from other HBC peers, and diapers is no exception.

您好，感謝您回答我們的問題。我只是想問幾個問題。首先，我們從其他母嬰保健同行那裡了解到，促銷活動正在增多，尿布也不例外。

It has, and can you please speak to the level of promotion you're seeing in general and also specifically in diapers? And then can you give us a sense of how some of your pricing levers like the promotions, the price architecture that I just mentioned, how have these been received?

確實如此，您能否談談目前看到的促銷力度，特別是尿布領域的促銷力度？那麼，您能否談談您剛才提到的一些定價策略，例如促銷活動和價格體系，這些策略的反應如何？

And I have another question. Thanks.

我還有個問題。謝謝。

Shavanna, let me answer the question that as we look at the pricing levers that we've introduced into the market, one of the things that's most visible and most in the period that we're talking about is that we've introduced a rollback strategy at Walmart, and we're very pleased. We're seeing velocities increasing. We're seeing the market respond very well.

Shavanna，讓我來回答這個問題。當我們審視我們引入市場的定價槓桿時，最明顯、也是我們所談論的這段時期內最顯著的一點是，我們在沃爾瑪推出了價格回滾策略，我們對此非常滿意。我們看到速度正在增加。我們看到市場反應非常好。

Tells us that indeed this is a consumer that in this category is, really giving consideration as they get to that shelf at what is the price point that they can really get in with and so we like the idea of in this current moment, making sure we're really aligned with the consumer pricing needs, the price value needs. You're, I don't remember the other question.

這告訴我們，這類消費者確實會認真考慮他們在這個品類中能夠接受的價格，因此我們喜歡在當前階段確保我們真正符合消費者的定價需求和價值需求。我不記得另一個問題了。

I think the other question.

我認為是另一個問題。

You asked was, could you repeat that?

你剛才問的是，你能再說一次嗎？

How are the retailers taking the?

零售商對此有何反應？

Shivani, your line is now open.

Shivani，您的線路已開通。

Hi, can you hear me?

你好，你聽得到我說話嗎？

I can hear you.

我能聽到你說話。

Sorry, no.

抱歉，不行。

No worries.

不用擔心。

I was just asking about the level, general level of inflation you're seeing in your other core categories such as your, wipes and, baby personal care.

我只是想問你們其他核心類別（例如濕紙巾和嬰兒個人護理用品）的整體通膨水準。

Yeah, the other categories are not demonstrating right now the same degree of price sensitivity that we're seeing in diapers overall. So I did mention that one of the things we're seeing in the diaper category overall is that almost all of the national players, I think I'm going to say all of the national players and even the private label segment, they are all declining.

是的，其他類別目前還沒有表現出像尿布整體那樣對價格如此敏感的程度。所以我確實提到過，我們在尿布領域整體上看到的一個現像是，幾乎所有全國性品牌，我認為應該說所有全國性品牌，甚至包括自有品牌，都在下滑。

Mining on dollar volume in the quarter with only the very low price entrant really showing growth. So that behavior is very different in our diaper category than when we study our baby personal care category, whereas you know we are the leading brand, so we really do drive that category and when we look at the wipes category overall, we're seeing strong growth from.

本季以美元交易量衡量礦業，只有價格非常低的入場者真正實現了成長。因此，我們在尿布類別中的行為與我們研究嬰兒個人護理類別時的行為截然不同，你知道我們是領先品牌，所以我們確實推動了該品類的發展，而當我們整體觀察濕巾品類時，我們看到了強勁的增長。

From the Honest brand, even as we are at the sitting at a bit of a higher price tier, and we know that our benefits really mean a lot in that category, so none of our categories seem to be under quite the same pressure at this point as diapers, although of course it's going to be important to keep watching how those that consumer confidence level and consumer macroeconomic changes affect the categories.

Honest 品牌目前處於較高的價格區間，我們知道我們的產品優勢在這個品類中意義重大，因此，目前我們的其他類別似乎都沒有像尿布那樣面臨同樣的壓力。當然，密切注意消費者信心水準和宏觀經濟變化如何影響這些品類也很重要。

Thank you.

謝謝。

And our next question comes from the line of Dana Telsey with Telsey Advisory Group

我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

Hi, good afternoon, everyone. With the new 2.0 plan in place or that's being put in place now, what does the new algorithm of the business look like? What, how do you think about the cadence of next year with any of these streamlining of cost coming in? How do you frame the financial statement?

大家好，下午好。隨著新的 2.0 計劃的實施或正在實施，企業的新演算法是什麼樣的？那麼，您如何看待明年這些成本精簡措施的實施對公司營運節奏的影響？你如何編製財務報表？

Thank you.

謝謝。

Yeah, thank you for the question. And so again, the transformation 2.0 powering on its growth is, the two-part program focused on getting to our higher margin right to win categories of wipes, personal care, and diapers, and of course we're exiting the non-strategic lower margin categories and channels.

是的，謝謝你的提問。因此，推動其成長的轉型 2.0 是，這項分為兩部分的計劃，重點是確保我們能夠贏得濕巾、個人護理和尿布等利潤更高的品類，當然，我們正在退出非戰略性的低利潤品類和渠道。

At the second part of the program will be to optimize the cost structure right sizing our SG&A and our supply chain footprint. We do expect that lowering the removing the low margin categories and our continued focus on growing the bottom line faster than the top-line.

該計畫的第二部分將優化成本結構，合理調整銷售、管理及行政費用和供應鏈規模。我們預計，降低低利潤類別並繼續專注於實現利潤成長速度超過營收成長速度，將有助於降低成本。

And I think marked by this year in Q2, we had our highest gross margin delivery of over 40% and as a proof point for what is possible in the future. The exit of these non-strategic categories is about 20% of the business, and these businesses are well below our average gross margin.

我認為今年第二季度，我們的毛利率達到了40%以上，創歷史新高，證明了未來發展的可能性。退出這些非策略性類別的業務約佔總業務的 20%，而且這些業務的毛利率遠低於我們的平均毛利率。

And again, that gives us confidence that when we get to the new business that we've got a strong potential to drive growth in 2026, and we're happy to share more details about 2026 and when we get to our earnings call in in February. I think part of the macroeconomic environment that we're in today, prevents us from, getting more specifics about the potential gross margin structure that we'll have next year.

這再次讓我們相信，當我們著手開展新業務時，我們有強大的潛力在 2026 年推動成長，我們很高興在 2 月的財報電話會議上分享更多關於 2026 年的細節。我認為，我們目前所處的宏觀經濟環境的部分原因，阻礙了我們更具體地了解明年可能出現的毛利率結構。

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

謝謝。我目前沒有其他問題要問。那麼，接下來我將把電話交還給執行長卡拉·弗農，請她作總結發言。

Thanks so much for joining the call, listening to where we are on our journey. We're very excited about powering on its growth as we go forward. Look forward to talking to you all next quarter. Thank you.

非常感謝您參與通話，聆聽我們分享目前的情況。我們非常高興能夠推動其未來持續成長。期待下季與大家交流。謝謝。

Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.

女士們、先生們，感謝各位的參與。今天的節目到此結束，您可以斷開連線了。