Interparfums Inc (IPAR) 2024 Q3 法說會逐字稿

Greetings and welcome to Inet Perfume, Inc's 2024 3rd quarter earnings conference call and webcast.(Operator Instruction) I'd like to turn the call over to Karin Daly, Vice President at the Equity Group and InterPerfume, Investor Relations representative. Thank you. You may begin.

您好，歡迎參加 Inet Perfume, Inc 的 2024 年第三季財報電話會議和網路廣播。我想將電話轉給股票集團副總裁兼 InterPerfume 投資者關係代表 Karin Daly。謝謝。你可以開始了。

Thank you, Diego and Good Morning. Everyone joining us on the call today will be Chairman and Chief Executive Officer Jean Madar and Chief Financial Officer Michel Atwood. On behalf of the company, I would like to note that this conference call may contain forward-looking statements which involve known and unknown risks uncertainties and other factors that may cause actual results to be materially different from projected results.

謝謝你，迭戈，早安。今天參加電話會議的所有人包括董事長兼執行長 Jean Madar 和財務長 Michel Atwood。我謹代表本公司指出，本次電話會議可能包含前瞻性陳述，其中涉及已知和未知的風險不確定性以及其他可能導致實際結果與預測結果有重大差異的因素。

These factors may be found in the company's filings with the securities and exchange commission under the headings, forward-looking statements and risk factors. In its most recent annual report on form 10-K forward-looking statements speak only as of the date on which they are made. And inter parks undertakes no obligation to update the information discussed as a reminder, consolidated results reflect the company's two business segments.

這些因素可以在該公司向美國證券交易委員會提交的文件中的標題、前瞻性陳述和風險因素中找到。在其最新的 10-K 表格年度報告中，前瞻性陳述僅反映截至其作出之日的情況。並且interparks不承擔更新所討論資訊的義務，提醒一下，合併績效反映了公司的兩個業務部門。

European based operations through its 72% owned French subsidiary headquartered in Paris into perfumes, say and United States based operations through its wholly owned subsidiaries headquartered in New York. It's now my pleasure to turn the call over to Mr Jean Madar. Jean?

歐洲業務透過其持股 72% 的總部位於巴黎的法國子公司開展香水業務，美國業務則透過其總部位於紐約的全資子公司開展。現在我很高興將電話轉給讓·馬達爾先生。讓？

Thank you, Karin, and Good Morning, everyone and thank you for joining us today. Once again, I'm happy to report that the fragrance market remains robust and is continuing to grow. But of course, at a more sustainable pace than in the past two years, the strong market only goes so far equally important to our success is our ability to swiftly adapt to changing consumer preferences, nutrients as well as the ever changing challenges of a global business while delivering our products sustainably and efficiently to our retailers and distributors.

謝謝卡琳，大家早安，謝謝你們今天加入我們。我再次很高興地向大家報告，香水市場仍然強勁並且持續成長。但當然，與過去兩年相比，強勁的市場以更永續的速度發展至今，對我們的成功同樣重要的是我們迅速適應不斷變化的消費者偏好、營養成分以及全球不斷變化的挑戰的能力。

Historically, our third quarter has been our strongest owing to the pre season shipments and the first quarter of this year did not disappoint in terms of sales. It was not only the best third quarter but also the best quarter in our history, Michel in a couple of minutes, we'll provide insight into our financial results.

從歷史上看，由於季前發貨，我們的第三季一直是最強勁的，今年第一季的銷售額也沒有令人失望。這不僅是最好的第三季度，也是我們歷史上最好的季度，米歇爾幾分鐘後，我們將深入了解我們的財務表現。

So third quarter sales across all markets were strong. Our three largest markets, North America, Western Europe and Asia Pacific grew sales by 12% for North America 25% for Western Europe and even 15% for Asia Pacific, Central and South America. Sales also continued on its positive trajectory with a 20% growth sales in Eastern Europe bounce back after being impacted by sourcing constraints earlier in the year, achieving third quarter sales growth of 23%.

因此，所有市場的第三季銷售都很強勁。我們最大的三個市場，北美、西歐和亞太地區，北美的銷售額成長了 12%，西歐成長了 25%，亞太地區、中美洲和南美洲的銷售額成長了 15%。銷售也繼續保持積極的軌跡，東歐地區的銷售額在今年稍早受到採購限制的影響後反彈，成長了 20%，第三季銷售額成長了 23%。

Also, our travel retail business continues to strengthen slowly but surely in the first nine months of the year, it has increased 24% from this time last year, representing approximately today, 7% of net sales getting us closer to our target of 10% of annual net sales.

此外，我們的旅遊零售業務繼續緩慢但穩定地在今年前 9 個月增強，與去年同期相比增長了 24%，大約相當於今天的淨銷售額的 7%，使我們更接近 10% 的目標年淨銷售額。

Regarding our presence in China, we recognize that we are currently under penetrated in this market, and we are fortunate to have remained insulated from the huge volatility and challenges that many companies in our industry face in this region. We have been closely monitoring the region and determine that the timing for entry is not yet. Right at this time, we are in the initial stages of developing a strategic promotional program aimed at accelerating growth in the Chinese market but only in 2026 in a very measured fashion from a channel perspective.

關於我們在中國的業務，我們認識到我們目前在這個市場的滲透率還不夠，我們很幸運能夠免受我們行業許多公司在該地區面臨的巨大波動和挑戰的影響。我們一直在密切監視該地區，並確定進入的時機尚未到來。目前，我們正處於製定策略促銷計畫的初始階段，旨在加速中國市場的成長，但從通路角度來看，該計畫只能在 2026 年進行。

For the first nine months of 2024 direct sales to retailers and travel retail represented approximately 37% of our net sales up from 35%. 1 year earlier, direct sales are primarily in the US in France and in Italy. While retailers are adopting a linear inventory approach. Our product sales have remained strong despite the reduced stock available on store shelves and since and since the majority of our net sales are conducted through our global network of distributors. We are as committed to them as ever in terms of point of sales, advertising and promotional support, product development and marketing.

2024 年前 9 個月，對零售商和旅遊零售的直接銷售約占我們淨銷售額的 37%，高於 35%。一年前，直銷主要在美國、法國和義大利。而零售商則採用線性庫存方法。儘管商店貨架上的庫存減少，但我們的產品銷售仍然強勁，自此以來，我們的大部分淨銷售都是透過我們的全球經銷商網路進行的。我們在銷售點、廣告和促銷支援、產品開發和行銷方面一如既往地致力於它們。

With an increase of sales, direct retailers. We are also seeing an uptick in our promotional gift set program. Gift sets are a fundamental offering in the beauty industry and deliver highly desired value for our retailer customers. While demand is not as high as we have seen across our US consumers. We are seeing growing demand for gift sets across Europe and even in the Middle East.

隨著銷售額的增加，直接零售商。我們也發現促銷禮品套裝計畫增加。禮品套裝是美容行業的基本產品，為我們的零售商客戶提供高度期望的價值。雖然需求並不像我們在美國消費者中看到的那麼高。我們看到整個歐洲甚至中東地區對禮品套裝的需求不斷增長。

During the summer, we fulfilled initial orders of gift sets and achieved healthy sell out plus strong reorders in the form. Our retailers are now restocked and well prepared to serve their customers ahead of the holiday season. Turning to our strategic initiatives. Our success reflects the consistent art performance of many of our prestige brands and the resilience of our team members who tirelessly ensure operational excellence throughout our organization.

夏季，我們完成了禮品套裝的首批訂單，並實現了健康的銷售和強勁的再訂單。我們的零售商現已補貨並做好充分準備，以便在假期前為客戶提供服務。轉向我們的策略舉措。我們的成功反映了我們許多知名品牌一貫的藝術表現以及我們團隊成員的韌性，他們孜孜不倦地確保整個組織的卓越運作。

There have been key areas of improvement this year that are in large part driving our results which include our advertising and promotional programs and fruitful spread of new products. Regarding our advertising and promotional program, we have continued to focus on social media and to a lesser extent legacy programs such as billboard TV and print media.

今年的一些關鍵領域的改進在很大程度上推動了我們的業績，其中包括我們的廣告和促銷計劃以及新產品的有效傳播。關於我們的廣告和促銷計劃，我們繼續關注社交媒體以及較小程度的傳統計劃，例如廣告看板電視和印刷媒體。

During the first quarter and throughout the entire year, we increased our content creation by expanding our high Caliber campaign across Instagram and TikTok to great success. We are also expanding into user generated content to encourage purchasers through highly engaged social media influencers who hold considerable sway in the world of beauty and fashion and increasingly include male influencers.

在第一季和全年中，我們透過在 Instagram 和 TikTok 上拓展高水準的行銷活動，增加了內容創作，取得了巨大成功。我們還擴展到用戶生成的內容，透過高度參與的社交媒體影響者來鼓勵購買者，這些影響者在美容和時尚界擁有相當大的影響力，並且越來越多地包括男性影響者。

Womenswear dealer reported that Amazon did $260 million in men's [perfume] sales last year, up 43% from the prior year. While Amazon women's fragrance business grew 34%. The article called out Mont Blanc as one of Amazon's bestsellers. While women's fragrance cells have traditionally up best men's recent trends show that the GAAP between them is narrowing.

女裝經銷商報告稱，亞馬遜去年的男裝[香水]銷售額為 2.6 億美元，比上年增長 43%。而亞馬遜女士香水業務則成長了34%。這篇文章稱萬寶龍為亞馬遜最暢銷的產品之一。雖然女性香水細胞傳統上一直領先男性，但最近的趨勢表明，它們之間的公認會計原則正在縮小。

The integration of influencers and new digital platforms is becoming a central access of marketing strategies, guaranteeing greater proximity with consumers and agility in the face of market changes. We also regularly coordinate with our brands fashion houses resulting in both partners benefiting from the synergies of brand recognition and appreciation.

影響者和新數位平台的整合正在成為行銷策略的核心途徑，保證更貼近消費者並在面對市場變化時保持敏捷性。我們也定期與品牌的時裝公司進行協調，使雙方合作夥伴都能從品牌認知和欣賞的協同效應中受益。

For instance, our latest Oscar de La Renta Fragrance called New York. Opara was featured at New York Fashion Week and in Vogue magazine also not worth the Mariela Us Fragrance Award event. Our Donna Karan Kashmir Collection was selected this year's best Fragrance collection. And Oscar de La Renta Alibi Pop was chosen as best of toilet turning to our pipeline of product launches during the quarter. We began distributing nuisance for the Montclair called Les So collection in the Middle East, which will go full scale in 2025.

例如，我們最新的 Oscar de La Renta 香水名為 New York。Opara 在紐約時裝週和《Vogue》雜誌上亮相，也不值得參加 Mariela Us 香水獎活動。我們的 Donna Karan Kashmir 系列被選為今年最佳香水系列。Oscar de La Renta Alibi Pop 被選為最佳廁所產品，涉及我們本季推出的一系列產品。我們開始在中東為 Montclair 的 Les So 系列分發令人討厭的產品，該系列將於 2025 年全面推廣。

Also debuting were Oscar de La Renta, New York. Ovin as mentioned earlier and the New Flanker for Lavin's Modern Princess. We also introduced extensions for guests with WMO Intenso and MCM Diamond, the new look and set of a backpack pillar. We have also captured lots of media attention with the ultra-deluxe limited-edition version of MCM award winning Fragrance, MCM Opara, which is embellished by hand with approximately 1,100 Swarovski crystals.

紐約奧斯卡·德拉倫塔 (Oscar de La Renta) 也首次亮相。前面提到的奧文和拉文現代公主的新側衛。我們還為客人推出了 WMO Intenso 和 MCM Diamond 擴充件、新外觀和一組背包支柱。我們也憑藉著榮獲 MCM 大獎的超豪華限量版香水 MCM Opara 吸引了眾多媒體的關注，這款香水採用約 1,100 顆施華洛世奇水晶手工裝飾。

Our new DKNY blockbuster fragrance, DKNY 24/7 is doing very well, and we are expanding its geographic distribution to new markets as well as fulfilling reorders from initial customers. As we mentioned in our third quarter sales release, the DKNY Donna Karan brand duo is on its way to be our next $100 million brand.

我們的新 DKNY 重磅香水 DKNY 24/7 表現得非常好，我們正在將其地理分佈擴大到新市場，並滿足初始客戶的再訂單。正如我們在第三季銷售發布中提到的，DKNY Donna Karan 品牌組合即將成為我們下一個價值 1 億美元的品牌。

We are also continuing the global rollout of Roberto Cavalli, Sweet Ferocious and Lacoste original. These two new brands combined cells are expected to add approximately $100 million in incremental sales in year one. We have a good lineup of new products launches in the coming year for our second largest European based brand Montblanc.

我們也將繼續在全球推出 Roberto Cavalli、Sweet Ferocious 和 Lacoste Original。這兩個新品牌組合的電池預計第一年將增加約 1 億美元的增量銷售額。我們的第二大歐洲品牌萬寶龍將在未來一年推出一系列新產品。

We will welcome a new pillar. Similarly, new pillars will be unveiled for Roas and Kle Feld. We are also growing the Montblanc explorer, Jimmy Schumann and coach for men and women fragrance families. The same for our kids paid more clear than cliff collections for Lacoste. The original Man and Woman and [LOL] lines will be expanded and of course, our own 10¢ luxury fragrance collection named Sulfer Ino Paris will begin limited distribution in the summer of 2025.

我們將迎來一個新的支柱。同樣，羅阿斯和克萊菲爾德的新支柱也將揭曉。我們還培育了萬寶龍探險家、吉米舒曼和教練男士和女士香水系列。對於我們的孩子來說，同樣的價格比 Lacoste 的懸崖系列更明確。最初的 Man and Woman 和 [LOL] 系列將擴展，當然，我們自己的 10 美分豪華香水系列名為 Sulfer Ino Paris 將於 2025 年夏季開始限量發行。

The collection was designed to compete with niche fragrances by bringing our skill and knowledge of this category and the power of our distribution which should enable us to make this start up a success. Furthermore, since we are not paying the usual royalties to the brand owner, because we own the brand, we can put that money to good use in A&P for our US based operation.

該系列旨在透過引入我們對該類別的技能和知識以及我們的分銷力量來與小眾香水競爭，這將使我們能夠使這家新創公司取得成功。此外，由於我們沒有向品牌所有者支付通常的特許權使用費，因為我們擁有該品牌，因此我們可以將這筆錢充分利用在 A&P 中，用於我們在美國的營運。

We will unveil new pillars across several of our brands including two new sons for our Donna Karan Kashmir collection, the Blockbuster Duo for Abercrombie FCH, plus new lines for Roberto Cavalli, Ferragamo and Uno. We will also be introduced. We will also be introducing new extension for several guest fragrance families and for MCM and enlarging the range of personal care product within each brand such as mist and creams.

我們將推出多個品牌的新支柱，包括 Donna Karan Kashmir 系列的兩個新子系列、Abercrombie FCH 的 Blockbuster Duo，以及 Roberto Cavalli、Ferragamo 和 Uno 的新系列。我們也會一一介紹。我們還將為多個客用香水系列和 MCM 推出新的擴展產品，並擴大每個品牌內的個人護理產品範圍，例如噴霧和乳霜。

Boosting our momentum, our Italian subsidiary that has been serving as a distribution hub across all the brands. Since January continues to perform favorably, online sales are also trending positively across Europe as we leverage our US based e-commerce experience to capture further sales.

我們的義大利子公司一直是所有品牌的分銷中心，這增強了我們的發展勢頭。自 1 月以來，隨著我們利用美國的電子商務經驗來獲得進一步的銷售，整個歐洲的線上銷售也呈現出積極的趨勢，表現繼續良好。

We are confident in our product expertise, strong brand relationships and efficient distribution capabilities together with the dynamic market. We believe we can achieve our net sales target and set yet another record in 2024. I will now turn the call over to Michelle our CFO for a detailed financial review.

我們對我們的產品專業知識、強大的品牌關係、高效的分銷能力以及充滿活力的市場充滿信心。我們相信我們能夠在 2024 年實現淨銷售額目標並再創紀錄。我現在將把電話轉給我們的財務長米歇爾，以進行詳細的財務審查。

Thank you, Jean, and good morning, everyone. By all measures, the 2024 3rd quarter was the best quarter in our history as laid out by Jean, I'll drill down the P&L for some also of the highlights on a consolidated basis. Gross margin was unchanged from last year's third quarter at 63.9%. We did see some movements within the two segments, but these were primarily driven by brand and channel mix on a year-to-date basis.

謝謝你，吉恩，大家早安。從所有方面來看，正如 Jean 所指出的，2024 年第三季度是我們歷史上最好的季度，我將在綜合基礎上深入分析損益表，以了解一些亮點。毛利率與去年第三季的 63.9% 持平。我們確實看到這兩個細分市場發生了一些變化，但這些變化主要是由年初至今的品牌和通路組合所推動的。

Consolidated gross sales expanded 30 basis points to 63.6% and we expect full year 2024 gross margins to be slightly ahead of 23 at approximately 64% on the A&P side A&P expenditures increased 6% to about 16% of net sales and 19% to 16.6% of net sales for the third quarter and the first nine months of 2024 respectively.

合併總銷售額成長了30 個基點，達到63.6%，我們預計2024 年全年毛利率將略高於23 年，約為64%，A&P 方面A&P 支出成長6%，佔淨銷售額的約16% ，成長19%，佔淨銷售額的16.6%分別為 2024 年第三季和前 9 個月的淨銷售額。

We're really seeing the results of our investments and our top line achievements and acutely supporting sustainable growth for the future. We continue to work towards our target A&P expense of 21% of net sales for 2024 with significant spending planned for the fourth quarter of 2024 to ensure a successful holiday season and strong start to 2025.

我們確實看到了我們的投資成果和我們的營收成就，並大力支持未來的永續成長。我們繼續努力實現 2024 年廣告及費用支出佔淨銷售額 21% 的目標，併計劃在 2024 年第四季度進行大量支出，以確保節日季取得成功並為 2025 年帶來強勁開局。

Similar to what we have done every year also included in SG and a expenses royalty expenses approximated 8% of net sales for both the current quarter and year-to-date. And this is broadly in line with our historical rates.

與我們每年所做的類似，也包括在SG中，特許權使用費費用約佔本季和年初至今淨銷售額的8%。這與我們的歷史利率基本一致。

Once again, the amortization of the cost of the [Lacoste] license, which amounted to $4.8 million during the first nine months of 2024 or $1.6 million quarterly will continue over the 15-year life of the contract overall. As G&A expenses increased 12% and 16% for the third quarter and the first nine months of 2024 representing 38.9% and 41.8% of net sales respectively in the same periods last year as G&A expenses were 40.2% and 39.8% of net sales respectively.

再一次，[Lacoste] 授權成本的攤銷在 2024 年前 9 個月達到 480 萬美元，或每季 160 萬美元，將在整個合約的 15 年有效期內繼續攤銷。2024 年第三季及前9 個月，管理及行政費用分別成長12% 及16%，分別佔淨銷售額的38.9% 及41.8%，而管理及行政費用分別佔淨銷售額的40.2% 及39.8 %。

Our third quarter operating margin was 25% compared to 23.7% in the same period. Last year, year-to-date our operating margin sitting at a very healthy 21.9% compared to a very high base of 23.5 for the first nine months of 2023.

我們第三季的營業利潤率為 25%，而同期為 23.7%。去年年初至今，我們的營業利益率為非常健康的 21.9%，而 2023 年前 9 個月的營業利益率為 23.5%。

As we reported yesterday, our net income was impacted by foreign exchange losses of $3.3 million in the third quarter as opposed to as compared to $ 0.7 million gains in the prior year. Leading to a year over year swing of about $4 million from a cash flow perspective. Accounts receivables are up 41% from a year-to-year end 2023. But the balance is reasonable based on record quarterly sales levels.

正如我們昨天報導的那樣，第三季度我們的淨利潤受到外匯損失 330 萬美元的影響，而去年同期則為 70 萬美元的收益。從現金流角度來看，年比波動約 400 萬美元。應收帳款較 2023 年底成長 41%。但根據創紀錄的季度銷售水平，這種平衡是合理的。

And the seasonality of our business days sales outstanding was 83 days up from 72 days from three months ago. But this is largely driven by channel and geographic mix as we reach more retailers and specialty stores directly.

我們的營業日銷售季節性從三個月前的 72 天增加到 83 天。但這在很大程度上是由通路和地理組合驅動的，因為我們直接接觸了更多的零售商和專賣店。

It is important to highlight that while our accounts receivable have increased, it has not really out paid to sell in and we continue to experience very strong collective activity with very little risk on AR our weekly reviews indicate that our receivables remain in good standing, and we do not anticipate any issues with account receivable collections.

需要強調的是，雖然我們的應收帳款有所增加，但並沒有真正支付出售費用，而且我們繼續經歷非常強勁的集體活動，AR 風險很小，我們的每週審查表明我們的應收帳款保持良好的信譽，我們預計應收帳款催收不會出現任何問題。

Our inventory levels at the end of 2024 3rd quarter increased 9% from the year end 2023. The inventory build up is designed to support and protect our service levels and the inclusion of our newest licenses. Lacoste and Roberto Cavalli.

2024 年第三季末我們的庫存水準比 2023 年末增加了 9%。庫存的建立旨在支援和保護我們的服務水準以及包含我們的最新許可證。拉科斯特和羅伯托·卡瓦利。

We're actively working on programs to deliver more inventory efficiency and in that regard, the conversion of raw materials into finished goods resulted in finished goods making up 63% of our inventory levels at the end of September as compared to 58%. Only one year earlier, our efforts to convert more profit to free cash flow by reducing our inventories are beginning to bear fruit with a significant year over year improvement in net cash provided by operating activities which total $76 million compared to $18 million in the prior year.

我們正在積極制定提高庫存效率的計劃，在這方面，原材料轉化為成品導致成品佔 9 月底庫存水準的 63%，而這一比例為 58%。僅在一年前，我們透過減少庫存將更多利潤轉化為自由現金流的努力開始取得成果，經營活動提供的淨現金同比顯著改善，總計 7600 萬美元，而上一年為 1800 萬美元。

Third quarter, we closed the quarter with a healthy balance sheet with working capital of$ 617 million including $157 million in cash, cash equivalent and short-term investments. Our long term debt including current maturities was $179 million at the end of the third quarter.

第三季度，我們以健康的資產負債表結束了本季度，營運資金為 6.17 億美元，其中包括 1.57 億美元的現金、現金等價物和短期投資。截至第三季末，我們的長期債務（包括當期到期日）為 1.79 億美元。

To reiterate, we are reaffirming our 2024 guidance of net sales of $1.45 billion implying upper single digit growth in the fourth quarter of this year. This results in earnings per diluted share of $5.15 which will set a new record for our company, Aure perfume, mastering regulatory, environmental and digital issues has been and will be key to remaining competitive.

重申一下，我們重申 2024 年淨銷售額指引為 14.5 億美元，這意味著今年第四季將實現較高個位數成長。這使得每股攤薄收益達到 5.15 美元，這將為我們公司 Aure 香水創下新紀錄，掌握監管、環境和數位問題已經並將成為保持競爭力的關鍵。

Thanks to our innovation approach, targeted premiumization and ability to offer unique experiences into perfume is well positioned to meet the challenges of tomorrow, ensuring sustainable growth and strong differentiation in our globalized market. With that operator. Please open the lines for questions.

憑藉我們的創新方法、有針對性的高端化以及為香水提供獨特體驗的能力，我們能夠很好地應對未來的挑戰，確保我們在全球化市場中的可持續增長和強大的差異化。與那個操作員。請打開提問線路。

Thank you. And we'll now conduct our Q&A session. (Operator Instruction) Our first question comes from Ashley Helgans with Jeffries. Please state your question.

謝謝。我們現在將進行問答環節。（操作員說明）我們的第一個問題來自 Ashley Helgans 和 Jeffries。請說出你的問題。

Hi, this is Sydney on for Ashley. Thank you for taking our question. Can you talk a little bit more about the changes in consumer preferences you called out? Sounds like maybe there's a bit of a trend, you know that the GAAP closing between men's and women's fragrance. But curious if there's any more trends you would, you would highlight.

大家好，我是阿什利的雪梨。感謝您提出我們的問題。能多談談您所指出的消費者偏好的變化嗎？聽起來好像有一種趨勢，你知道男士香水和女士香水之間的公認會計原則正在接近。但你想知道是否還有更多趨勢，你會強調。

Thank you.

謝謝。

So, I can try to answer this. Yes, we see definitely some trends quarter after quarter month after month, the men's, the men's part of the business is getting stronger. We see also no resistance to, to price elasticity. We even said that there was a trend to premiumization on the on the fragrance.

那麼，我可以嘗試回答這個問題。是的，我們確實看到了一些趨勢，每季、每季、每個月，男裝業務都在變得越來越強勁。我們也看到價格彈性沒有阻力。我們甚至說香水有一種高端化的趨勢。

More and more people are willing to pay more for fragrance and we are even talking about younger people that are willing to pay more. That's why there is such a growth in the collections and niche things that are less commercial, has more signature.

越來越多的人願意為香水支付更高的價格，甚至我們正在談論願意支付更高價格的年輕人。這就是為什麼收藏品和利基產品如此成長，商業化程度較低，更具標誌性。

The distribution is more selective and this is the nutrient. But on the other hand, the collecting business, the commercial business, the designer fragrant business that we have with our brands could be a coach or guest or Mont Blanc. It's still doing quite well. So, this is for me, the important trends that I can identify. Thank you.

分配更有選擇性，這就是營養。但另一方面，我們品牌的收藏業務、商業業務、設計師香水業務可以是教練、客人或萬寶龍。它仍然表現得很好。所以，這對我來說是我可以識別的重要趨勢。謝謝。

Thank you. And our next question comes from Korinne Wolfmeyer with Piper Sandler. Please state your question.

謝謝。我們的下一個問題來自 Korinne Wolfmeyer 和 Piper Sandler。請說出你的問題。

Hi, this is Sarah for Korinne. Hi, thanks for taking our question. I just have one on selling trends. What are those expectations for Q4? And then what are you seeing with retail order patterns for both on the US and internationally? And then just how far off is sell in versus sell out right now.

大家好，我是科琳娜的莎拉。您好，感謝您提出我們的問題。我只有一篇關於銷售趨勢的文章。對第四季的期望是什麼？那麼您對美國和國際零售訂單模式有何看法？然後現在的賣出與賣出還有多遠。

Yeah. So, in terms of selling, you know, I think as we laid out in our prepared remarks, we're, we're projecting a double-digit growth in the, in the fourth quarter and at this point in time, you know, what we've seen in the first nine months is selling, this is not only true for us, but what we're seeing this is also for our competitors. Sell in has been slower than, than sell out and what we're seeing is the stocking, you know, continuing to happen across the across the industry.

是的。因此，就銷售而言，我認為正如我們在準備好的發言中所闡述的那樣，我們預計第四季度和此時此刻將實現兩位數的增長，我們在前九個月看到的是銷售，這不僅對我們來說如此，而且我們所看到的對我們的競爭對手來說也是如此。銷售速度比銷售速度慢，我們看到的是整個產業的庫存持續增加。

So there's still a small disconnect between sell in and sell out. And, and it's been, it's been about a point and it really varies from, from geography to one to another. So at this point in time, you know. That's kind of what we're projecting for the fourth quarter. But our stock seems to, you know, our retailers are well stocked and so far the holiday season is, is going, going pretty well.

因此，賣出和賣出之間仍然存在著細微的脫節。而且，它一直是關於一個點，而且它確實因地理位置而異。所以在這個時間點，你知道。這就是我們對第四季的預測。但我們的庫存似乎，你知道，我們的零售商庫存充足，到目前為止，假期季節進展順利。

Great. Thank you. Very helpful.

偉大的。謝謝。非常有幫助。

Our next question comes from Hamed Khorsand with BWS Financial. Please state your question.

我們的下一個問題來自 BWS Financial 的 Hamed Khorsand。請說出你的問題。

Hello Hamed.

你好，哈米德。

I just follow up. Hi. Follow up on this last question is, I'm just trying to get a handle on the sequential decline figure. I mean, you're based on the current guidance, it's a 15% sequential decline in sales and I [pars] never had that kind of degree of decline going into Q4 from Q3. So I just want to see if there's anything special there.

我只是跟進。你好。最後一個問題的後續是，我只是想了解連續下降的數字。我的意思是，根據目前的指導，銷售額連續下降了 15%，而從第三季度到第四季度，我從未出現過這種程度的下降。所以我只是想看看那裡有什麼特別的東西。

Michell, could you?

米歇爾，你可以嗎？

Yeah, I mean, I think I at high at the end of the day, you know, sequential declines are very, you know, this is a very highly, you know, cyclical and seasonal business. You know, year over year, there can be various impacts, there can be launches, large launches you can have. So if you think about for example, 2021 you know, we added the Ferragamo brand in the middle of the year.

是的，我的意思是，我認為最終我處於高位，你知道，連續下降非常，你知道，這是一個非常高度週期性和季節性的業務。你知道，年復一年，可能會產生各種影響，可能會有發布，大型發布。因此，如果您考慮一下 2021 年，您就會知道，我們在年中添加了菲拉格慕品牌。

So at the end of the day, you know, it's, it's always very difficult to look at these things, you know, on a sequencing basis. But if you look at our growth rates I mean, our growth rates are projected to be, you know, for the fourth quarter in line with what we've delivered on a year-to-date basis, which is about 10%. And you recall last year, you know, we did have a very, very elevated, you know, year-to-date at the end of the third quarter where we were up 27%. So, so overall, you know, we're, we are lap, we are starting to lap some of the high growth periods that we had last year. And, and that's one of the reasons why you're seeing a more normalized growth, you know, this year and, and, and also going forward.

所以歸根究底，你知道，按照順序來看這些事情總是非常困難的。但如果你看看我們的成長率，我的意思是，你知道，我們第四季的成長率預計與我們今年迄今為止的成長率一致，約為 10%。你還記得去年，你知道，我們的業績確實非常非常高，截至第三季末，我們的業績成長了 27%。所以，總的來說，你知道，我們正在經歷去年的一些高增長期。這就是今年和未來看到更加正常化成長的原因之一。

Okay. And if I may, what is the benefit or impact of selling more gift sets versus the traditional individual?

好的。如果可以的話，與傳統的個人銷售相比，銷售更多的禮品套裝有什麼好處或影響？

I, I think that the, the customers is looking for distance with our value offers and this is also a way to, thank the loyal customer and to give him once a year, some gifts again, and we can afford it, which is a practice. And you will, you will see people going to department stores and really looking for this, the people who don't know what it is.

我，我認為，客戶正在尋求與我們的超值優惠保持距離，這也是一種感謝忠實客戶並每年給他一次的方式，再次給他一些禮物，我們可以負擔得起，這是一個實踐。你會看到人們去百貨公司並真正尋找這個，但人們不知道它是什麼。

It's basically the same product that we are giving away on the top of the regular size, a body lotion or a smaller size or I think it's a way to keep our customer close to, to the brand. It's also to, to thank them for being close to the brand. And for us, of course, it has a little impact on the margin, but we are able to manage it.

它基本上與我們在常規尺寸、潤膚露或更小尺寸的基礎上贈送的產品相同，或者我認為這是讓我們的客戶與品牌保持密切關係的一種方式。這也是為了感謝他們與該品牌的密切關係。當然，對我們來說，這對利潤率有一點影響，但我們能夠管理它。

It was a very, very important in the US for years. It's becoming more important in Europe. We see we see trends of that. This is going to be but almost everywhere. So, we will continue to, to manage it. We don't want of course, the business to be too big. But in the first quarter, it's quite normal to have a gift.

多年來，這在美國非常非常重要。它在歐洲變得越來越重要。我們看到我們看到了這種趨勢。這將是但幾乎無處不在。因此，我們將繼續管理它。我們當然不希望業務太大。但在第一季度，有禮物還是很正常的。

Yeah.

是的。

Got it Maybe.

明白了也許吧。

Is this Michelle?

這是米歇爾？

No, I was just going to build on John, which is, you know, every business has some level of promotionally, you know, and you can either promote based on price or you can promote through do these kinds of mechanisms. These 10 mechanisms tend to be a lot healthier in terms of long term and preserving the long-term value of your products in, in the market. So, this is really, it's at the end of the day, it's a much more effective and luxury you know, supporting promotional mechanism.

不，我只是要以約翰為基礎，你知道，每個企業都有一定程度的促銷，你知道，你可以根據價格進行促銷，也可以透過此類機制進行促銷。從長遠來看，這 10 種機制往往更健康，並能維持產品在市場上的長期價值。所以，這確實是，歸根結底，這是一種更有效、更奢侈的支援促銷機制。

Got it. Okay. And then could you just if I missed the excuse me but is there an update on the luxury line for release in 2025.

知道了。好的。那麼請問我錯過了，請問 2025 年發布的豪華系列有更新嗎？

Michelle?

米歇爾？

Yeah, I think the the plan is to launch in the in the summer of next year. That that is the current that is the current plan.

是的，我認為該計劃將於明年夏天推出。這就是當前，這就是當前的計劃。

Thank you.

謝謝。

I do want to insist this is still really going to be very small. I mean, obviously we're, you know, you know, this is a very important strategic play for us to enter this this space. But you know, these brands, you know, take time to be built up. So this is not going to represent a significant building block for next year.

我確實想強調這仍然很小。我的意思是，顯然我們，你知道，你知道，這對我們進入這個領域來說是一個非常重要的策略。但你知道，這些品牌需要時間來建立。因此，這不會成為明年的重要組成部分。

Thank you. And our next question comes from Oliver Chen with TD Cowen. Please state your question.

謝謝。我們的下一個問題來自 TD Cowen 的 Oliver Chen。請說出你的問題。

Hi, John Madar and Michelle, the fragrance market in terms of somewhat moderating. When do you expect that to abate as we're, we continue to be in the normalization phase or catalyst for it to perhaps re accelerate in the future?

嗨，約翰·馬達爾和米歇爾，香水市場在某種程度上有所緩和。您預計這種情況何時會像我們現在這樣減弱，我們繼續處於正常化階段或成為未來可能重新加速的催化劑？

Also, it's nice that you're driving higher demand across Europe and Middle East sell in relative to the US. Just what's driving that and helping us compare and contrast these markets could be useful for us as well. China has also been a tough market and I know you spoke about promos and tactics. But what do you see for China, some of the overhang macroeconomically could be structural and multiyear in nature. So would love your thoughts on how to compete in that market as well. Thank you.

此外，很高興您推動了歐洲和中東相對於美國的更高需求。推動這一趨勢並幫助我們比較和對比這些市場的因素也可能對我們有用。中國也是一個艱難的市場，我知道您談到了促銷和策略。但您對中國有何看法？因此，我也很想聽聽您對如何在該市場競爭的想法。謝謝。

Thank you, Michelle. You want to, to answer the first part and I will answer the second.

謝謝你，米歇爾。你想回答第一部分，我會回答第二部分。

I mean, when hi Oliver, we continue to see pretty, pretty healthy demand across the, across the across the market. And the markets are growing, we continue to see double digit growth across the market. We're not really, you know, this is what the NPD data is kind of telling us.

我的意思是，嗨，奧利佛，我們繼續看到整個市場的需求非常非常健康。市場正在成長，我們繼續看到整個市場呈現兩位數成長。你知道，我們並不是真的，這就是 NPD 數據告訴我們的。

But when we look at our competitive, our competitors and when we look at overall what's happening from a, from a selling standpoint, there seems to be a bit of a disconnect there and again, I think this is in part driven by some of the adjustments that are being done, you know, within the inventory levels of the stock and trade levels.

但是，當我們審視我們的競爭對手、我們的競爭對手，以及當我們從銷售的角度審視整體情況時，似乎一次又一次地存在著一些脫節，我認為這在一定程度上是由一些因素驅動的。

We keep thinking that the market is going to slow down and, and I think that is always reflected in our guidance and I think we've all been, you know, happily surprised quarter after quarter that the market hasn't slowed down. I think a lot of the trends continue to be good, particularly I would say in the US where we are seeing an increase in penetration, very strong increase in penetration and usage. And I think that has been really fueling the market.

我們一直認為市場將會放緩，我認為這始終反映在我們的指導下，我認為我們每個季度都對市場沒有放緩感到驚訝。我認為很多趨勢仍然是好的，特別是在美國，我們看到滲透率的成長，滲透率和使用率的成長非常強勁。我認為這確實推動了市場的發展。

But I'm sorry, if I may, I would like to add that We have seen a double-digit growth. We have grown at a rate of 10% in the first nine months of the year. But we think that we've, we've a stronger sell out than the sale. We anticipate this growth going forward to slow down. And I don't think we can, we, going to see the same type of growth that we had in the, in the last 2 to 3 years, which is fine.

但很抱歉，如果可以的話，我想補充一點，我們已經看到了兩位數的成長。今年前九個月我們的成長率為 10%。但我們認為我們的銷售量比銷售量更強。我們預計這種成長將放緩。我認為我們無法看到過去兩三年的相同類型的成長，但這很好。

I mean, before COVID, this industry, a frequent segment of industry was growing to up to 2% rate. So we'll do better than that for sure. But when you see our peers and when you see the market, I think we have to be prudent on the on the growth.

我的意思是，在新冠疫情之前，這個行業，一個常見的行業，成長率高達 2%。所以我們肯定會做得更好。但當你看到我們的同行和市場時，我認為我們必須對成長持謹慎態度。

So the good news is we have brands in our portfolio that are at the beginning of their life cycle like costs, not even one year old under our management and we have a lot, a lot to do with, our this new brand Roberto Cavalli is also new in the portfolio, and we have a blockbuster launching in 2025.

所以好消息是，我們的投資組合中的品牌正處於生命週期的開始階段，就像成本一樣，在我們的管理下甚至還不到一年，我們有很多很多的事情要做，我們的這個新品牌Roberto Cavalli 是這也是產品組合中的新產品，我們將於 2025 年推出一款重磅產品。

So, because of the activity and because of the of the portfolio, we think we will continue to lead our fears, but I want everybody to be reasonable and do not expect in the future what we have done in the past, for sure.

因此，由於這些活動和投資組合，我們認為我們將繼續引發我們的擔憂，但我希望每個人都保持理性，不要期望未來會發生我們過去所做的事情。

Very helpful. And Michelle on your destocking comments. When might that end? We're definitely seeing that across the industry as well. And then John Madar as we look to next year, which product launches are, are most material are you most excited about if you had to prioritize a few? Thanks a lot.

非常有幫助。米歇爾關於你的去庫存評論。那什麼時候才能結束呢？我們在整個行業也肯定看到了這一點。然後約翰·馬達爾（John Madar），當我們展望明年的產品發佈時，如果您必須優先考慮一些內容，那麼您最興奮的是大多數材料嗎？多謝。

Yeah, so, so Oliver, I think the de Stocking has been, you know, slowing down. I mean, it was much stronger at the beginning of the year and it, it has been, it has been slowing down. I think overall in the third quarter, it was broadly in line with our, you know, historical sell out. So I think at this point in time, I think we're feeling that the stocking is, is behind us.

是的，奧利佛，我認為去庫存一直在放緩。我的意思是，今年年初它要強勁得多，但一直以來，它一直在放緩。我認為整體而言，第三季的銷售情況與我們的歷史銷售情況基本一致。所以我認為在這個時候，我們感覺庫存已經過去了。

So, regarding the, the brands with some very interesting new launches next year, lets mention [ D3] let's mention Lacosse, let's mention of course, [Roberto Cave] and so, and the guest has also a very interesting program for 2025. So almost all our largest brands have new pillars or new Blockbuster.

那麼，關於明年推出一些非常有趣的新品的品牌，讓我們提一下[D3]，讓我們提一下Lacosse，當然讓我們提一下[Roberto Cave]等等，嘉賓還有一個非常有趣的2025年計劃。所以我們幾乎所有最大的品牌都有新的支柱或新的百視達。

So, we are quite confident.

所以，我們還是很有信心的。

Thank you very much. Best regards. Happy holidays as well.

非常感謝。此致。節日快樂也。

And keeping up with the.

並跟上。

Great gift sets.

很棒的禮品套裝。

Bye.

再見。

Thank you.

謝謝。

Thank you. And we have reached the end of our question-and-answer session. I'll now turn the call over to Michelle at Wood for closing remarks.

謝謝。我們的問答環節已經結束。現在我將把電話轉給伍德的米歇爾做總結發言。

All right. Well, you know, thank you again for, for joining our call today and before I end the call, I would like to announce a few upcoming events. We'll be providing initial guidance for 2025 next Tuesday on November 12th at the close of the market.

好的。嗯，你知道，再次感謝您今天加入我們的電話會議，在結束電話會議之前，我想宣布一些即將舉行的活動。我們將在 11 月 12 日下週二市場收盤時提供 2025 年的初步指導。

On December 5th, DA Davidson will be visiting our New York headquarters as part of its seventh annual holiday, Beauty and Wellness bus tour and on December 9th and 10th, I'll be participating in the Raymond James Consumer Conference here in New York City.

12 月5 日，DA Davidson 將訪問我們的紐約總部，作為其第七屆年度假期“美容與健康”巴士之旅的一部分，12 月9 日至10 日，我將參加在紐約市舉行的雷蒙德詹姆斯消費者會議。

So if you are interested in attending any of these events, please reach out to their respective sales representative. I also want to take this opportunity as we get into the end of the year to really thank our teams and our organization clearly are, these results are very strong. We wouldn't achieve a record year without the help and support of our entire organization.

因此，如果您有興趣參加這些活動，請聯絡他們各自的銷售代表。在我們進入年底之際，我也想藉此機會真正感謝我們的團隊和我們的組織，這些成果非常強勁。如果沒有整個組織的幫助和支持，我們就不可能實現創紀錄的一年。

So really wanted to tip my head again to the team. We don't get these results without a lot of hard work and dedication. So this is really a big nod to, to the organization, to the IP organization for all their hard work and support this year.

所以我真的很想再向團隊傾訴。如果沒有大量的努力和奉獻，我們就不會取得這些成果。因此，這確實是對該組織、智慧財產權組織今年的辛勤工作和支持的大力認可。

If you have any additional questions, please contact Karen da from the equity group. She's our investor relations representative and her telephone number and email address can be found in our most recent earnings release. So we look forward to the next conference call and, thank you and have a great day.

如果您還有任何其他問題，請聯絡股權組的 Karen da。她是我們的投資者關係代表，她的電話號碼和電子郵件地址可以在我們最新的財報中找到。因此，我們期待下一次電話會議，謝謝大家，祝您有美好的一天。

Thank you. Old parts may not disconnect. Have a good day.

謝謝。舊部件可能無法斷開連接。祝你有美好的一天。