Levi Strauss & Co (LEVI) 2022 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co. Third Quarter Earnings Conference Call for the period ending August 28, 2022. (Operator Instructions). This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the Internet and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com. I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.

女士們，先生們，美好的一天，歡迎參加截至 2022 年 8 月 28 日期間的 Levi Strauss & Co. 第三季度收益電話會議。（操作員說明）。本次電話會議正在錄音中，未經公司書面許可，不得全部或部分複制。本次電話會議正在互聯網上播出，四分之一的時間可以在公司網站 levistrauss.com 上觀看網絡廣播的重播。我現在想把電話轉給 Levi Strauss & Co. 投資者關係副總裁 Aida Orphan。

Thank you for joining us on the call today to discuss the results for our third fiscal quarter of 2022. Joining me on today's call are Chip Bergh, President and CEO of Levi Strauss; and Harmit Singh, our CFO. We have posted complete Q3 financial results in our earnings release on the IR section of our website, investors.levistrauss.com. The link to the webcast of today's conference call can also be found on our site. We'd like to remind everyone that we will be making forward-looking statements on this call, which involve risks and uncertainties.

感謝您今天加入我們的電話會議，討論我們 2022 年第三財季的業績。與我一起參加今天電話會議的還有 Levi Strauss 總裁兼首席執行官 Chip Bergh；和我們的首席財務官 Harmit Singh。我們已在我們網站investors.levistrauss.com 的投資者關係部分的收益發布中發布了完整的第三季度財務業績。今天電話會議的網絡直播鏈接也可以在我們的網站上找到。我們想提醒大家，我們將在此次電話會議上做出前瞻性陳述，其中涉及風險和不確定性。

Actual results could differ materially from those contemplated by our forward-looking statements. Please review our filings with the SEC, in particular, the Risk Factors section of the quarterly report on Form 10-Q that we filed today for the factors that could cause our results to differ. Also note that the forward-looking statements on this call are based on information available to us as of today, and we assume no obligation to update any of these statements. During this call, we will discuss certain non-GAAP financial measures.

實際結果可能與我們的前瞻性陳述所設想的結果大不相同。請查看我們向 SEC 提交的文件，特別是我們今天提交的 10-Q 表格季度報告的風險因素部分，以了解可能導致我們的結果不同的因素。另請注意，本次電話會議中的前瞻性陳述基於我們今天可獲得的信息，我們不承擔更新任何這些陳述的義務。在本次電話會議中，我們將討論某些非公認會計準則財務措施。

These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call, in its entirety, is being webcast on our IR website, and a replay of this call will be available on the website shortly. Today's call is scheduled for 1 hour. (Operator Instructions). And now I'd like to turn the call over to Chip (inaudible).

這些非 GAAP 措施無意替代我們的 GAAP 結果。最後，本次電話會議的全部內容將在我們的 IR 網站上進行網絡直播，很快將在網站上播放本次電話會議的重播。今天的通話時間為 1 小時。 （操作員說明）。現在我想把電話轉給 Chip（聽不清）。

Good afternoon, and thanks for joining us today. As you know, and I've heard from other companies, macro conditions deteriorated since we last spoke with you in early July. As we move through the third quarter, a confluence of pressures from inflation to falling consumer sentiment to rising interest rates began to result in softer consumer demand, while our industry continued to experience supply chain disruption and a heightened promotional environment. Not surprisingly, this made for a challenging quarter.

下午好，感謝您今天加入我們。如您所知，並且我從其他公司獲悉，自我們上次在 7 月初與您交談以來，宏觀狀況惡化了。隨著我們進入第三季度，從通脹到消費者信心下降再到利率上升的壓力開始導致消費者需求疲軟，而我們的行業繼續經歷供應鏈中斷和促銷環境加劇的情況。毫不奇怪，這是一個充滿挑戰的季度。

Despite this, we were able to deliver solid results with net revenue growth of 7% on a constant currency basis, which translates to plus 1% on a reported basis. While this was below our own internal expectations for the first time in several quarters, our teams responded to this very dynamic environment by focusing on controlling the controllables. We took quick action to both stay competitive and protect the bottom line, resulting in a double-digit adjusted EBIT margin of 12-plus percent. I've talked before about the importance of strong brands during uncertain times.

儘管如此，我們仍能實現穩健的業績，按固定匯率計算，淨收入增長 7%，即按報告基準計算增長 1%。雖然這在幾個季度以來首次低於我們自己的內部預期，但我們的團隊通過專注於控制可控因素來應對這種非常動態的環境。我們迅速採取行動，既保持競爭力又保護底線，調整後的 EBIT 利潤率達到兩位數，達到 12% 以上。我之前談過在不確定時期強勢品牌的重要性。

Our brands remain very strong, delivering strong growth despite the challenging environment. Specifically, excluding the impact of foreign exchange, we delivered constant currency growth across our key brands with Levi's plus 6% and Dockers plus 13%. But beyond the revenue results, there are other key proof points that underscore the strength of our brands. First, this quarter, we delivered the Levi's brand highest third quarter revenue in a decade with growth across categories and genders.

儘管環境充滿挑戰，我們的品牌仍然非常強大，實現了強勁的增長。具體來說，排除外彙的影響，我們的主要品牌實現了穩定的貨幣增長，Levi's + 6% 和 Dockers + 13%。但除了收入結果之外，還有其他一些關鍵的證據證明了我們品牌的實力。首先，本季度，我們實現了 Levi's 品牌十年來最高的第三季度收入，並實現了跨類別和跨性別的增長。

We've made meaningful progress winning over the next generation of fans, continuing to gain share with the 18- to 30-year old age segment in the U.S. while maintaining our leadership position across consumers of all ages. And our unaided brand awareness remains well above competition across most markets. Second, the strength of the brand has equated to pricing power. AURs were up mid-single digits in a more promotional environment and the pricing we've taken to offset inflation has largely stuck. Third, and as a result of our pricing power, our gross margins, though off modestly versus a year ago primarily due to currency and discounting, remained strong and are still nearly 400 basis points higher than pre-pandemic levels as we have successfully offset significant inflationary cost increases.

我們在贏得下一代粉絲方面取得了有意義的進展，繼續在美國 18 至 30 歲年齡段贏得份額，同時在所有年齡段的消費者中保持領先地位。我們的獨立品牌知名度仍然遠高於大多數市場的競爭。其次，品牌實力等同於定價權。在更具促銷性的環境中，AUR 上漲了中個位數，而我們為抵消通脹而採取的定價在很大程度上已經停滯不前。第三，由於我們的定價能力，我們的毛利率雖然與一年前相比略有下降，主要是由於貨幣和貼現，但仍然保持強勁，仍然比大流行前水平高出近 400 個基點，因為我們已經成功抵消了顯著的影響通貨膨脹成本增加。

Fourth, our direct-to-consumer business continued to deliver outsized growth plus 8% in constant currency, which, by the way, Harmit and I will continue to refer to in the balance of our remarks, driven by increases across our stores and e-commerce business. Having strong powerful brands and a diversified business with scale mattered during these volatile times. These advantages allowed us to grow global wholesale by 6% and total U.S. company revenue by 5% despite a number of U.S. wholesale customers slowing orders. To put the U.S. results in context, we significantly outperformed both the overall jeanswear market which based on NPD data, declined by mid-single digits during the June through August quarter and the overall U.S. apparel market, which slowed to only 1% growth.

第四，我們的直接面向消費者的業務繼續實現超大增長，按固定匯率計算增長了 8%，順便說一下，在我們的商店和電子產品增長的推動下，Harmit 和我將在餘下的評論中繼續提到這一點-商業業務。在這些動蕩的時期，擁有強大的強大品牌和具有規模的多元化業務至關重要。儘管許多美國批發客戶的訂單放緩，但這些優勢使我們的全球批發業務增長了 6%，美國公司總收入增長了 5%。結合美國的業績來看，我們的表現明顯優於基於 NPD 數據的整體牛仔服市場（在 6 月至 8 月季度下降了個位數中位數）和整體美國服裝市場（增長放緩至僅 1%）。

I think it's also important to note that despite the past 3-month decline in the jeanswear category, it is still up mid-single digits versus pre-pandemic. Despite the quarterly category softening, we remain confident about the long-term trend of casualization, continuing to be a tailwind for the business. In addition, even with continuing supply chain constraints, our team took swift action to minimize the impact of just $30 million to $40 million or about 2 to 3 percentage points of revenue growth. As the operating environment becomes more challenging and supply disruptions continue, our unique and durable competitive advantages will continue to set us apart from the competition.

我認為還需要注意的是，儘管牛仔服類別過去 3 個月有所下降，但與大流行前相比，它仍處於中個位數的上升趨勢。儘管季度類別疲軟，我們仍然對休閒化的長期趨勢充滿信心，繼續成為業務的順風。此外，即使供應鏈受到持續限制，我們的團隊仍迅速採取行動，將僅 3000 萬至 4000 萬美元或約 2 至 3 個百分點的收入增長的影響降至最低。隨著經營環境變得更具挑戰性和供應中斷的持續，我們獨特而持久的競爭優勢將繼續使我們在競爭中脫穎而出。

Let me walk you through the progress we made across our strategic priorities during the quarter, again, all in constant currency. Our first strategic priority is brand-led. As mentioned, Levi's brand grew 6% versus prior year and almost 10% ahead of 2019. We're driving growth in our bottoms business by delivering a pipeline of fresh and innovative products as we define new trends and introduce new fits. We continue to build upon our success with looser fits with the launch of our new baggie dad, a signature 90s style, which delivered strong performance as did our new boot cut and straight fit launches.

讓我再次向您介紹我們在本季度在戰略重點方面取得的進展，所有這些都以不變貨幣計算。我們的首要戰略重點是品牌主導。如前所述，Levi's 品牌與去年相比增長了 6%，比 2019 年增長了近 10%。我們正在通過提供一系列新鮮和創新產品來推動我們的底部業務增長，因為我們定義了新趨勢並引入了新的合身。隨著我們新的 baggie dad 的推出，我們繼續在我們的成功基礎上再接再厲，這是一種標誌性的 90 年代風格，與我們新推出的靴子剪裁和直筒款式一樣，它提供了強勁的性能。

The trend towards looser fits in women's was also accompanied by a shift from high to mid rises, which were up 20%. The Iconic 501 family again posted double-digit growth across men's and women's. After 149 years, this fit continues to resonate. We continue to position the Levi's brand at the center of culture by partnering with leading brands and cultural icons on product collaborations. The Ganni collaboration returned this year and was featured on the runway at the Copenhagen Fashion Week and sold out in 2 weeks. And the new Levi's denim Tears collection was worn by Golden State Warriors Guards, Steph Curry on the cover of October's Rolling Stone.

女裝款式更寬鬆的趨勢也伴隨著從高位到中位的轉變，上漲了 20%。 Iconic 501 系列的男裝和女裝再次實現了兩位數的增長。 149 年後，這種契合度繼續引起共鳴。通過與領先品牌和文化偶像在產品合作方面進行合作，我們繼續將 Levi's 品牌定位於文化中心。 Ganni 合作今年回歸，並在哥本哈根時裝週的 T 台上亮相，並在 2 週內售罄。新的 Levi's 牛仔褲 Tears 系列被金州勇士隊的後衛斯蒂芬庫裡穿在十月的滾石雜誌的封面上。

We also recently launched the second iteration of our Buy Better, Wear Longer campaign designed to inspire shoppers both young and young at heart, while highlighting the quality and the timeless style of Levi's. Additionally, this campaign underscores the durability of the pair of Levi's important in today's environment where consumers are looking for quality and value for money. This is the highest scoring ad in copy testing that we've had since I joined the company over a decade ago, a reflection of how much this message resonates.

我們最近還推出了第二次“買得更好，穿得更久”活動，旨在激發年輕和內心年輕的購物者，同時突出 Levi's 的品質和永恆風格。此外，本次活動強調了 Levi's 鞋款在當今消費者追求質量和物有所值的環境中的耐用性。這是自我十多年前加入公司以來，我們在文案測試中獲得的最高得分廣告，反映了這條信息的共鳴程度。

Moving on to our second priority. Total company DTC channel grew 8%. Owned and operated mainline and outlet stores grew in the third quarter, mid-single digits with traffic and AURs both up versus prior year, again another sign of the strength of our brands. And even as consumers return to our stores, e-commerce grew 16%, driven by the Levi brand in Asia, Beyond Yoga and Dockers. Overall, e-commerce was up 64% versus 2019, with the Americas and Europe segments up double digits and Asia more than doubling.

繼續我們的第二個優先事項。公司 DTC 總渠道增長 8%。自有和經營的主線和直銷店在第三季度增長，達到中個位數，客流量和 AUR 均比去年同期增長，這再次表明我們品牌的實力。即使消費者回到我們的商店，在亞洲的 Levi 品牌、Beyond Yoga 和 Dockers 的推動下，電子商務也增長了 16%。總體而言，電子商務與 2019 年相比增長了 64%，其中美洲和歐洲市場增長了兩位數，亞洲增長了一倍以上。

Globally, the Levi's app continue to achieve increased engagement with monthly active users again up double digits, along with 17% growth in revenue. And we made progress in deepening our direct personalized relationships with our consumers via our global loyalty programs, which saw double-digit growth in total members and revenue. We also grew our global wholesale business by 6% driven by the Levi's brand across Asia and the Americas. In the U.S., the Levi's brand was up low single digits, with strong growth in women's new fits. This growth was offset by a 12% decline in our value brands, Signature and Denizen, which are most sensitive to changes in consumer discretionary spending.

在全球範圍內，Levi's 應用程序的月活躍用戶參與度繼續提高，再次達到兩位數，收入增長 17%。通過我們的全球忠誠度計劃，我們在深化與消費者的直接個性化關係方面取得了進展，會員總數和收入實現了兩位數的增長。在亞洲和美洲的 Levi's 品牌的推動下，我們的全球批發業務也增長了 6%。在美國，Levi's 品牌的銷量僅增長了個位數，女裝新品增長強勁。這一增長被我們的價值品牌 Signature 和 Denizen 下降 12% 所抵消，這些品牌對消費者可自由支配支出的變化最為敏感。

Further, this business was impacted by a reduction in Denizen women's distribution at Target as we've expanded Levi's Red Tab. As a reminder, our value brands only comprise a mid-single-digit percentage of our total net revenues. Our third strategic priority is diversifying our portfolio, and we continued the strong momentum we have achieved in each of our major growth opportunities with women's, tops, international and our other brands Dockers and Beyond Yoga, each contributing positively to third quarter growth.

此外，隨著我們擴大 Levi's Red Tab 的規模，該業務受到 Target 的 Denizen 女性分銷減少的影響。提醒一下，我們的價值品牌僅占我們總淨收入的中個位數百分比。我們的第三個戰略重點是使我們的產品組合多樣化，我們繼續保持我們在每個主要增長機會中取得的強勁勢頭，包括女裝、上衣、國際和我們的其他品牌 Dockers 和 Beyond Yoga，每個品牌都為第三季度的增長做出了積極貢獻。

Our total company women's business grew 8% above men's strong performance of about 6%. The women's business was driven by Levi's bottoms, which were up 7% and saw a notable strength in the Americas. Additionally, the small but growing women's business on Dockers was completely additive as was Beyond Yoga. For the total company, tops saw 12% growth as we continue to diversify our offerings. Levi's tops were up 8%, driven primarily by men's, which grew 14%. We continue to see strength in tees, wovens and polos, while our Levi's women's business saw positive growth across nongraphic tees, dresses and sweaters.

我們公司的女性業務總額增長了 8%，高於男性約 6% 的強勁表現。女裝業務受到 Levi's 底褲的推動，上漲 7%，並在美洲表現出顯著的實力。此外，Dockers 上規模雖小但不斷增長的女性業務與 Beyond Yoga 一樣具有完全的附加性。對於整個公司而言，隨著我們繼續多樣化我們的產品，上衣增長了 12%。 Levi's 上衣增長 8%，主要是男裝增長 14%。我們繼續看到 T 卹、梭織和 Polo 衫的實力，而我們的 Levi's 女裝業務在無圖案 T 卹、連衣裙和毛衣方面實現了正增長。

Our international business grew 8% even as we navigated a more challenging consumer environment in Europe and in China. We saw encouraging strength across Asia which excluding China, was up 68% as well as in several of our largest and important European markets, notably the U.K. and Spain. Our updated Dockers brand with its California casual aesthetic posted 13% growth, driven by both AUR and volume, while also delivering strong profitability that exceeded our plan. Brand delivered growth across major geographies and channels.

即使我們在歐洲和中國面臨更具挑戰性的消費環境，我們的國際業務也增長了 8%。我們看到除中國以外的亞洲以及我們幾個最大和重要的歐洲市場，尤其是英國和西班牙，增長了 68%，令人鼓舞。在 AUR 和銷量的推動下，我們更新後的 Dockers 品牌及其加州休閒美學實現了 13% 的增長，同時還提供了超出我們計劃的強勁盈利能力。品牌在主要地區和渠道實現了增長。

The U.S. was up 2% and international brick-and-mortar and e-commerce saw notably strong gains. Dockers women's and tops businesses also saw strong growth and grew as a percentage of the brand sales. Beyond Yoga contributed $22 million to net revenue with solid consumer demand in the quarter with company-operated e-commerce sales up strong double digits on a pro forma basis. It launched at 20 colleges across the country as the brand continues to build awareness and reach new consumers. Perhaps most exciting at the end of last month, Beyond Yoga opened its first permanent store located in Santa Monica, showcasing the brand's full array of category offerings for the first time.

美國上漲了 2%，國際實體店和電子商務也取得了顯著的強勁增長。 Dockers 女裝和上衣業務也實現了強勁增長，佔品牌銷售額的百分比也在增長。 Beyond Yoga 為本季度的淨收入貢獻了 2200 萬美元，消費者需求強勁，公司運營的電子商務銷售額在備考基礎上強勁增長了兩位數。隨著該品牌不斷提高知名度並吸引新的消費者，它在全國 20 所大學推出。也許最令人興奮的是上月底，Beyond Yoga 在聖莫尼卡開設了第一家常設店，首次展示了該品牌的全系列產品。

While we're just getting started, we believe there is an attractive long-term opportunity to grow the brand's presence through retail. Finally, one of our most important company-wide objectives is leading the industry in environmental stewardship. Last week, we released our annual sustainability report, which includes a comprehensive set of disclosures and introduces a new slate of sustainability goals, 16 and all, that cut across our 3 main pillars of climate, consumption and community. You can find the report online in the Sustainability tab of our website.

雖然我們才剛剛開始，但我們相信通過零售來擴大品牌影響力是一個有吸引力的長期機會。最後，我們最重要的全公司目標之一是在環境管理方面引領行業。上週，我們發布了年度可持續發展報告，其中包括一套全面的披露信息，並介紹了一系列新的可持續發展目標，包括 16 個和所有目標，這些目標跨越了氣候、消費和社區這三個主要支柱。您可以在我們網站的“可持續發展”選項卡中在線找到該報告。

In closing, we continue to achieve steady progress against our long-term objectives as we navigated a more difficult environment in the third quarter. While we expect it to remain challenging over the next few quarters, I'm confident in our ability to navigate the near-term headwinds and importantly, deliver on our long-term goals for the following 5 reasons: first, we had really strong brands; second, our categories are structurally attractive with long-term tailwinds from the casualization trend and denim cycle; third, we have the global scale to react to disruptions and manage through inflationary pressure with competitive sourcing; fourth, we have a diversified business model where some of our biggest opportunities are gross margin accretive and generate higher AURs; and fifth, we have a seasoned and proven team that has delivered excellent results while managing through challenging times.

最後，隨著我們在第三季度面臨更加困難的環境，我們繼續在實現長期目標方面取得穩步進展。雖然我們預計未來幾個季度仍將面臨挑戰，但我對我們駕馭近期逆風的能力充滿信心，重要的是，基於以下 5 個原因實現我們的長期目標：首先，我們擁有非常強大的品牌;其次，我們的品類在結構上具有吸引力，長期受益於休閒化趨勢和牛仔週期；第三，我們擁有全球規模，可以通過競爭性採購應對中斷並通過通脹壓力進行管理；第四，我們擁有多元化的商業模式，其中一些最大的機會是毛利率增加並產生更高的 AUR；第五，我們擁有一支經驗豐富且久經考驗的團隊，在管理充滿挑戰的時期時取得了出色的成績。

LS & Co. has separated itself from competition in challenging times in the past by making the right moves. We believe the current environment is an opportunity for us to do this again. We will operate with discipline and lean into our strengths to further expand our lead for the years to come. Now over to Harmit.

LS & Co. 在過去充滿挑戰的時代，通過採取正確的行動，將自己與競爭區分開來。我們相信當前的環境是我們再次這樣做的機會。我們將有紀律地運作，並發揮我們的優勢，在未來幾年進一步擴大我們的領先地位。現在轉到哈米特。

Thanks, Chip. Let me begin with 3 thoughts before we get into the numbers. We delivered a solid quarter with net revenues up 7% in constant currency, demonstrating the power experience of the Levi's brand. We delivered these results even in the face of higher FX headwinds, transitory pandemic-related supply chain issues intensifying in the U.S., resulting in our inability to fulfill orders as well as stiffening ongoing economic and inflationary headwinds impacting consumer discretionary spending in the U.S. and Europe. Thanks to the strength of our brand, our diversified business model and operational agility, we were able to quickly manage expenses and exceed expectations for adjusted diluted earnings.

謝謝，奇普。在我們進入數字之前，讓我從 3 個想法開始。我們實現了穩健的季度，按固定匯率計算，淨收入增長了 7%，展示了 Levi's 品牌的強大體驗。即使面對更高的外匯逆風，美國與暫時性大流行相關的供應鏈問題加劇，導致我們無法履行訂單，以及影響美國和歐洲消費者可自由支配支出的持續經濟和通脹逆風加劇，我們仍實現了這些結果.由於我們的品牌實力、多元化的業務模式和運營敏捷性，我們能夠快速管理費用並超出調整後的攤薄收益預期。

We made progress against our long-term strategic plan. delivering growth across our attractive high-margin opportunities, including women's tops, direct-to-consumer, international and our Dockers and Beyond Yoga brands. By exercising control of the controllables, we are navigating the short term while continuing to invest in our compelling long-term growth initiatives and returning capital to our shareholders. Now let's get to some additional Q3 financial details. Net revenue grew 7%, primarily driven by the U.S., Asia and Latin America with broad-based increases in AUR.

我們在長期戰略計劃方面取得了進展。通過我們有吸引力的高利潤機會實現增長，包括女性上衣、直接面向消費者、國際以及我們的 Dockers 和 Beyond Yoga 品牌。通過行使對可控因素的控制，我們在短期內導航，同時繼續投資於我們引人注目的長期增長計劃並將資本返還給我們的股東。現在讓我們來看看一些額外的第三季度財務細節。淨收入增長 7%，主要受美國、亞洲和拉丁美洲 AUR 廣泛增長的推動。

Direct-to-consumer channel net revenue grew 8%, driven by positive comp store sales across our mainline and outlet stores, including in the U.S. due to increased traffic, higher AURs and UPTs. And despite strength in the stores, our e-commerce business was up 16% and net revenue through all digital channels were up 15%. Adjusted gross margin in reported dollars was 56.9%, up more than 390 basis points versus 2019, yet contracting 60 basis points year-over-year, due to a 30 basis points unfavorable currency exchange rate impact as well as the impact of higher product costs and lower full-price sales, particularly in the U.S. relative to last year, partially offset by price increases and a favorable channel mix.

直接面向消費者的渠道淨收入增長了 8%，這得益於我們的主線和直銷店（包括美國）由於客流量增加、AUR 和 UPT 更高而帶來的正面銷售。儘管商店實力強勁，但我們的電子商務業務增長了 16%，所有數字渠道的淨收入增長了 15%。以美元計的調整後毛利率為 56.9%，與 2019 年相比增長了 390 個基點，但由於 30 個基點的不利貨幣匯率影響以及產品成本上升的影響，同比下降了 60 個基點與去年相比，尤其是在美國的全價銷售額下降，部分被價格上漲和有利的渠道組合所抵消。

Moving to SG&A. Adjusted SG&A expenses in the quarter were $675 million, up 6% from last year at the lower end of our expectations. As we began to see the impact of the softening macro environment, we minimized spending in the quarter by reducing discretionary expenses like travel, delaying nonessential hiring and projects. And we're continuing to do the same as we move into quarter 4. As a percentage of revenue, adjusted SG&A was 44.5%, reflecting higher distribution expenses and ongoing strategic investments in IT and our direct-to-consumer business and our lower-than-expected revenues.

轉移到 SG&A。本季度調整後的 SG&A 費用為 6.75 億美元，比去年增長 6%，處於我們預期的低端。當我們開始看到宏觀環境疲軟的影響時，我們通過減少旅行等可自由支配的開支、推遲非必要的招聘和項目來最大限度地減少本季度的支出。在進入第四季度時，我們將繼續這樣做。調整後的 SG&A 佔收入的百分比為 44.5%，這反映了更高的分銷費用以及對 IT 和我們的直接面向消費者業務的持續戰略投資以及我們較低的收入超預期。

Adjusted EBIT margin was 12.4%, contracting 240 basis points on a reported basis and 200 basis points on a constant currency basis. Adjusted EBIT dollars were down 15% on a reported basis and 8% on a constant currency basis. The effective income tax rate was 7.2% for the third quarter compared to 4.8% in the same quarter of the prior year. The lower effective tax rate relative to the company's full year updated outlook for mid-teens was driven by the acceleration of certain tax-related initiatives. Adjusted net income was $161 million compared to $197 million in the same quarter of the prior year.

調整後息稅前利潤率為 12.4%，在報告基礎上收縮 240 個基點，在固定貨幣基礎上收縮 200 個基點。調整後的息稅前利潤在報告基礎上下降了 15%，在固定貨幣基礎上下降了 8%。第三季度的有效所得稅率為 7.2%，而去年同期為 4.8%。與公司全年更新的青少年中期展望相比，有效稅率較低是由於某些稅收相關舉措的加速推動。調整後的淨收入為 1.61 億美元，而去年同期為 1.97 億美元。

The decrease was due to lower operating income. Adjusted diluted EPS was $0.40, which includes a $0.04 negative impact from foreign exchange, of which, half was incremental to the outlook we provided in July. I'll now take you through key highlights by segment. Recall the regional segments include our Levi's brand, Levi, Signature and Denizen, while the other brand segment includes Dockers and Beyond Yoga. In the Americas, revenues grew 3%, driven by higher AURs across channels.DTC growth of 8% was driven by company-operated mainline and outlet stores, which benefited from increased traffic and AURs in addition to new stores.

減少是由於營業收入減少。調整後的稀釋後每股收益為 0.40 美元，其中包括來自外彙的 0.04 美元的負面影響，其中一半是我們在 7 月份提供的展望的增量。我現在將按部分向您介紹主要亮點。回想一下區域細分市場包括我們的 Levi's 品牌、Levi、Signature 和 Denizen，而其他品牌細分市場包括 Dockers 和 Beyond Yoga。在美洲，收入增長了 3%，這得益於跨渠道 AUR 的提高。DTC 增長 8% 是由公司運營的主線和直銷店推動的，這得益於增加的客流量和 AUR 以及新店。

Wholesale growth of 2% was driven by international and the Levi's brand in the U.S., which as Chip mentioned, was partially offset by lower revenues of our value brand. Overall, the Americas segment saw growth across all markets, with the U.S. up 2% and notable momentum across Latin America, led by the strength in Mexico. In Europe, revenues were 9% lower on a constant currency basis, which includes a 4% negative impact from the suspension of our business operations in Russia. While macro pressures, including inflation and extreme heat, negatively impacted the region, several of our large markets posted growth.

2% 的批發增長是由國際品牌和美國的 Levi's 品牌推動的，正如 Chip 所說，這部分被我們價值品牌的收入下降所抵消。總體而言，美洲市場在所有市場均實現增長，其中美國增長 2%，在墨西哥的強勢帶動下，拉丁美洲的增長勢頭顯著。在歐洲，按固定匯率計算，收入下降了 9%，其中包括我們在俄羅斯暫停業務運營造成的 4% 的負面影響。雖然包括通貨膨脹和極端高溫在內的宏觀壓力對該地區產生了負面影響，但我們的幾個大型市場實現了增長。

Our successful pricing actions delivered high single-digit AUR growth, which partially offset softer consumer demand. Though we continue to anticipate pressure from the macro environment, we remain confident in the strength of the brand in the region, and Levi's remains by far the most popular denim brand in Europe. Asia again accelerated with greater-than-anticipated revenue, up 53% despite COVID-related restrictions negatively impacting markets like China. Volumes and AURs both increased strongly and wholesale and direct-to-consumer both partially benefited from lapping wider spread COVID-related door closures last year.

我們成功的定價行動帶來了高個位數的 AUR 增長，部分抵消了疲軟的消費者需求。儘管我們繼續預期來自宏觀環境的壓力，但我們對品牌在該地區的實力仍然充滿信心，Levi's 仍然是迄今為止歐洲最受歡迎的牛仔品牌。儘管與 COVID 相關的限制對中國等市場產生了負面影響，但亞洲的收入再次加速增長，超出預期，增長了 53%。銷量和 AUR 均強勁增長，批發和直接面向消費者的業務均部分受益於去年與 COVID 相關的更廣泛的關門。

E-commerce was up 33%, while our company-operated stores saw gains from traffic, AURs and new stores. The Asia segment, excluding China, grew 68% with broad-based growth across markets, led by India, Malaysia, ANZ, Indonesia and Thailand, and overall revenue growth and higher gross margins have delivered better than anticipated operating margin expansion of nearly 2,000 basis points to 7.4%. Other brands net revenue was up 44%, driven by 13% growth in Dockers and the addition of Beyond Yoga. Turning to balance sheet and cash flows. We inventories increased 43% on a dollar basis. However, there are a few items that are driving that increase and are worth noting. Approximately 1/3 relates to COGS inflation and the normalization of last year's abnormally low inventory levels. Another 1/3 of the increase relates to the intentional earlier receipts of core inventory to mitigate supply chain risk and the U.S. implementation of a new ERP system in the second quarter of fiscal '23.

電子商務增長了 33%，而我們的公司自營商店則從流量、AUR 和新店中獲得收益。不包括中國的亞洲業務增長了 68%，在印度、馬來西亞、澳新銀行、印度尼西亞和泰國的帶領下，整個市場實現了廣泛的增長，整體收入增長和更高的毛利率實現了近 2,000 個基點的營業利潤率增長好於預期指向 7.4%。受 Dockers 增長 13% 和 Beyond Yoga 的推動，其他品牌的淨收入增長了 44%。轉向資產負債表和現金流。我們的庫存按美元計算增加了 43%。但是，有一些項目正在推動這一增長並且值得注意。大約 1/3 與銷貨成本通脹和去年異常低庫存水平的正常化有關。另外 1/3 的增長與有意提前收到核心庫存以減輕供應鏈風險以及美國在 23 財年第二季度實施新的 ERP 系統有關。

And the final 1/3 was driven by an increase of goods in transit. Core products, which can be sold across multiple future seasons, represented approximately 2/3 of total inventories, and we're comfortable with the composition and quality of our inventory. As you build inventory for 2023, and we look forward to respond to changing demand, we have reduced inventory buys for the first half of 2023 by approximately 25%. These actions should enable us to return to normalized inventory levels in line with net revenue growth by the end of quarter 3.

而最後的 1/3 是由在途貨物的增加推動的。可以跨多個未來季節銷售的核心產品約佔總庫存的 2/3，我們對庫存的構成和質量感到滿意。隨著您為 2023 年建立庫存，並且我們期待響應不斷變化的需求，我們已將 2023 年上半年的庫存購買量減少了約 25%。這些行動應該使我們能夠在第三季度末恢復到與淨收入增長一致的正常庫存水平。

Cash and liquidity remained strong with the end of quarter net debt of $372 million and overall liquidity of $1.4 billion. Our leverage ratio remained at 1.1x, owing to investments in inventory and inflation, adjusted free cash flow, which we define as cash flow from operating activities less property, plant and equipment, was negative $12 million in the third quarter. However, we expect adjusted free cash flow for quarter 4 and the full year to be positive. In the third quarter, we returned approximately $74 million to shareholders.

現金和流動性依然強勁，季度末淨債務為 3.72 億美元，整體流動性為 14 億美元。由於對庫存和通貨膨脹的投資，我們的槓桿率保持在 1.1 倍，調整後的自由現金流（我們定義為來自經營活動的現金流減去物業、廠房和設備）在第三季度為負 1200 萬美元。然而，我們預計第 4 季度和全年的調整後自由現金流為正數。第三季度，我們向股東返還了大約 7400 萬美元。

The company paid a dividend of $0.12 per share, nearly 50% higher than a year ago. And in the quarter, we repurchased shares of approximately $26 million. In quarter 4, the company declared a dividend of $0.12 per share in line with last quarter, and we currently have $619 million remaining under our share repurchase program, which has no expiration date. Now let's turn to guidance. While we're confident in the strength of a brand and deep consumer connections, we are not immune to the macro headwinds the sector is experiencing.

該公司支付每股 0.12 美元的股息，比一年前高出近 50%。在本季度，我們回購了大約 2600 萬美元的股票。在第 4 季度，公司宣布與上一季度持平每股 0.12 美元的股息，我們目前在我們的股票回購計劃下剩餘 6.19 億美元，該計劃沒有到期日。現在讓我們轉向指導。雖然我們對品牌的實力和深厚的消費者聯繫充滿信心，但我們也不能倖免於該行業正在經歷的宏觀逆風。

And though in the month of September, we're continuing to experience momentum in our U.S. direct-to-consumer business, which is up 10%, we are tempering our outlook for the remainder of the year to reflect ongoing supply chain disruption and macroeconomic pressures. For fiscal '22, we now expect reported net revenues to grow 6.7% to 7%, representing approximately 11.5% to 12% net revenue growth on a constant currency basis. Our outlook includes 3 points of incremental FX pressure since we guided in July. On a reported basis, we now expect Americas to be up high single digits, Asia mid-teens and Europe down high single digits.

儘管在 9 月份，我們的美國直接面向消費者的業務繼續保持增長 10% 的勢頭，但我們正在調整今年剩餘時間的前景，以反映持續的供應鏈中斷和宏觀經濟壓力。對於 22 財年，我們現在預計報告的淨收入將增長 6.7% 至 7%，按固定匯率計算，淨收入增長約為 11.5% 至 12%。我們的展望包括自 7 月指導以來的 3 個增量外匯壓力。根據報告，我們現在預計美洲將達到高個位數，亞洲將保持高個位數，歐洲將下降高個位數。

In constant currency, we expect Asia to grow in the low 20% range. Excluding FX and Russia, we expect Europe to grow high single digits. We also now expect adjusted diluted earnings per share of $1.44 to $1.49, despite incremental FX headwinds of [$0.05] since we reported back in July. In total, for the full year, we now expect more than $250 million of unfavorable FX impact on net revenues and $0.13 in adjusted diluted EPS. To put our latest full year adjusted diluted EPS guidance in context relative to where we started in early 2022, adverse FX, Russia China are estimated to have impacted adjusted diluted EPS by over $0.20.

按固定匯率計算，我們預計亞洲將在 20% 的低位增長。不包括外彙和俄羅斯，我們預計歐洲將增長高個位數。我們現在還預計調整後的攤薄後每股收益為 1.44 美元至 1.49 美元，儘管自我們 7 月份報告以來外匯逆風增加 [0.05 美元]。總體而言，我們現在預計全年對淨收入的不利外匯影響超過 2.5 億美元，調整後的攤薄每股收益為 0.13 美元。為了將我們最新的全年調整後攤薄每股收益指引放在與我們在 2022 年初開始的背景相關的背景下，不利的外匯、俄羅斯、中國估計對調整後攤薄每股收益的影響超過 0.20 美元。

By focusing on what we can control, while building this business for the longer term, we have managed to offset nearly 75% of this downside. We expect our full year adjusted gross margin slightly down versus last year's 57.9%, nearly 400 basis points higher than 2019. The change from our prior outlook is driven by foreign exchange and lower full price sales as we expect the broader marketplace to be more promotional through the end of the holiday season. As a result, we now expect our adjusted EBIT to be 11.6% to 11.8% for the year, which is approximately 60 to 80 basis points lower than prior year on a reported basis, but 100 to 120 basis points ahead of '19.

通過專注於我們可以控制的事情，同時建立更長期的業務，我們已經成功抵消了近 75% 的不利影響。我們預計全年調整後毛利率將略低於去年的 57.9%，比 2019 年高出近 400 個基點。我們之前展望的變化是由外彙和較低的全價銷售推動的，因為我們預計更廣泛的市場將更具促銷性通過假期結束。因此，我們現在預計今年調整後的息稅前利潤為 11.6% 至 11.8%，比上年報告的基礎上低約 60 至 80 個基點，但比 19 年提前 100 至 120 個基點。

We continue to expect $270 million in CapEx for the year as we expand our direct-to-consumer business and continued strategic investments in IT. We expect our full year effective tax rate to be in the mid-teens, which implies a mid-single-digit tax rate for quarter 4. As specifically relates to quarter 4, this implies our fourth quarter net revenues will be slightly down on a constant currency basis and down approximately 6% on a reported basis. Our outlook reflects a more cautious view with regard to supply chain challenges, particularly in the U.S. into the fourth quarter.

隨著我們擴大直接面向消費者的業務並繼續對 IT 進行戰略投資，我們繼續預計今年的資本支出將達到 2.7 億美元。我們預計全年有效稅率將在十幾歲左右，這意味著第 4 季度的稅率為中個位數。特別是與第 4 季度相關，這意味著我們的第四季度淨收入將略微下降以固定匯率為基礎，在報告的基礎上下降約 6%。我們的展望反映了對供應鏈挑戰的更為謹慎的看法，尤其是在美國到第四季度。

We expect adjusted diluted EPS to be between $0.29 and $0.34. As I did in the beginning, I want to leave you with a few key points. Our vision for a long-term future remains unchanged. While we expect conditions to remain challenging in the near term, we are confident in our ability to leverage our strengths to deliver sustainable, profitable, long-term growth and emerge in a stronger position. Our brands and the structural economics of our business remain as strong as ever. On top of our resilient core, we are making good progress in attractive, growing and high-margin areas, including our women's tops International and direct-to-consumer business.

我們預計調整後的攤薄每股收益將在 0.29 美元至 0.34 美元之間。正如我在開始時所做的那樣，我想給你留下幾個關鍵點。我們對長期未來的願景保持不變。雖然我們預計短期內情況仍將充滿挑戰，但我們有信心利用我們的優勢實現可持續、盈利的長期增長並處於更有利的地位。我們的品牌和我們業務的結構經濟仍然一如既往地強大。除了我們有彈性的核心，我們在有吸引力、不斷增長和高利潤的領域取得了良好的進展，包括我們的女裝國際和直接面向消費者的業務。

We are focused on controlling the controllables. We're reducing discretionary spending, but not at the expense of any of our strategic investments that continue to fuel our brand and which will enable us to deliver on our long-term growth plan. And finally, we are financially strong with a solid balance sheet and a strong diversified and scaled business model to generate the cash flow to reinvest for long-term growth while continuing to return cash to our shareholders. And with that, operator, I would like to open it up for questions.

我們專注於控制可控因素。我們正在減少可自由支配的支出，但不以犧牲我們的任何戰略投資為代價，這些投資將繼續為我們的品牌提供動力，並使我們能夠實現我們的長期增長計劃。最後，我們擁有穩健的資產負債表和強大的多元化和規模化商業模式，財務實力雄厚，可產生現金流以進行再投資以實現長期增長，同時繼續向股東返還現金。有了這個，接線員，我想打開它來提問。

(Operator Instructions). Our first question comes from the line of Bob Drbul of Guggenheim Partners.

（操作員說明）。我們的第一個問題來自 Guggenheim Partners 的 Bob Drbul。

I guess, Chip and Harmit, just when you look at the quarter, can you talk a little bit more, I don't know, like geographically, how it materializes? When you think about the changes in the quarter and sort of how you missed your expectations or just the dynamics that unfolded? And I'd be a little bit -- I'd be interested to hear just how you think wholesale inventories are of the categories with some of the changes in the category that you talked about as well throughout the quarter?

我想，Chip 和 Harmit，就在你看這個季度的時候，你能不能多說一點，我不知道，就像地理上的，它是如何實現的？當您考慮本季度的變化以及您如何錯過預期或只是展開的動態時？而且我會有點-我很想听聽您如何看待批發庫存屬於您在整個季度中談到的類別中的一些變化的類別？

Bob. Thanks for asking the difficult question. But as you know, we delivered a solid quarter, up 7%. And Levi's in quarter 3 hit a record revenue for that quarter in a decade. But you're right, we missed our own internal high bar. Things progressed fairly quickly through the quarter. The moment we saw headwinds -- incremental headwinds in FX, supply chain continued pressures and demand softness, especially in the Western world, we focused on the controllable. So if you think of revenue, I'd break up the miss to our own internal expectations in the following way: 1/3 was foreign exchange, 1/3 was supply chain constraints that persisted and honestly limited our ability to service demand that is out there.

鮑勃。感謝您提出這個難題。但如您所知，我們實現了穩健的季度，增長了 7%。 Levi's 在第三季度創下了十年來該季度的創紀錄收入。但你是對的，我們錯過了我們自己的內部高標準。本季度事情進展得相當快。我們看到逆風的那一刻——外匯逆風的增加、供應鏈持續的壓力和需求疲軟，尤其是在西方世界，我們關注的是可控的。因此，如果您考慮收入，我會通過以下方式打破我們自己的內部預期：1/3 是外匯，1/3 是持續存在的供應鏈限制，並且誠實地限制了我們滿足需求的能力，即在那裡。

So that was about $30 million to $40 million in revenue. And then the macroeconomic environment, which weakened in the U.S. and Europe, Asia and Latin America were the standouts geographically. They grew. We continue to be long on those businesses. As we think about the impact on EPS and profitability, I'd say the drop to our own expectations and revenue, which is about $0.12, we quickly focused on the controllables. So between cost and other things like tax rates. And our tax rates are in the mid-teens, we hope to sustain in the high teens longer term.

所以這大約是 3000 萬到 4000 萬美元的收入。然後是美國和歐洲、亞洲和拉丁美洲減弱的宏觀經濟環境在地理上是突出的。他們長大了。我們繼續看好這些業務。當我們考慮對每股收益和盈利能力的影響時，我想說的是，我們自己的預期和收入下降了大約 0.12 美元，我們很快就把注意力集中在了可控因素上。因此，在成本和稅率等其他因素之間。我們的稅率在十幾歲左右，我們希望長期維持在十幾歲的青少年時期。

So that's where we kind of offset it. In terms of your question on wholesale and U.S. wholesale, if you think about the quarter, U.S. wholesale was up low single digits. If you back out mass channel, which is 2 retailers that we sell Signature and Denizen, which is down, as Chip mentioned, about 12%. U.S. wholesale actually was up in the mid-single digits. So overall, fairly okay. We do monitor trade inventory levels. And we measure in months. And at the end of quarter trade inventory levels in the U.S. with wholesale customers were largely similar to what it was in '19. Now there are obviously some customers are higher. Some customers are lower, but that's the way we see the data.

所以這就是我們抵消它的地方。就您對批發和美國批發的問題而言，如果您考慮本季度，美國的批發量僅增長了個位數。如果您退出大眾渠道，即我們銷售 Signature 和 Denizen 的 2 家零售商，正如 Chip 所提到的，該渠道下降了約 12%。美國的批發量實際上上升了個位數。所以總體來說還算可以。我們確實監控貿易庫存水平。我們以月為單位進行衡量。在季度末，美國批發客戶的貿易庫存水平與 19 年的情況基本相似。現在顯然有一些客戶更高了。一些客戶較低，但這就是我們查看數據的方式。

Our next question comes from Paul Lejuez of Citi.

我們的下一個問題來自花旗的 Paul Lejuez。

Curious if you could talk a little bit more about inventory. Maybe if you can provide any color, maybe breaking it down by region, tops, first; bottoms, men's versus women's? I think (inaudible) that you might have mentioned something about how much was seasonless product. But also curious if you think there are any places where you have more than you'd like, where you have to be a little bit more promotional to clear through?

好奇你能否多談談庫存。也許如果你能提供任何顏色，也許首先按地區、頂部分解它；下裝，男裝還是女裝？我認為（聽不清）您可能已經提到過季節性產品有多少。但也很好奇，如果您認為在某些地方您擁有比您想要的更多的東西，您必須在這些地方進行更多促銷才能清除？

Sure. So I tried to break out the inventory, the drivers of growth in the prepared remarks, 1/3 was largely driven by inflation in COGS, which is up. As you know, cotton was higher. And a lower inventory base because last year things were very tight. 1/3 was largely driven by us bringing earlier things because of longer lead times as well as the ERP. And 1/3 was largely good in transit. In terms of the thing that we're doing, Paul and the team we are -- and most of this inventory is largely core.

當然。所以我試圖打破庫存，在準備好的評論中增長的驅動力，1/3 主要是由 COGS 的通脹驅動的，這是上升的。如你所知，棉花價格更高。庫存基礎較低，因為去年情況非常緊張。 1/3 很大程度上是由於我們帶來了更早的東西，因為更長的交貨時間以及 ERP。 1/3 在運輸中基本上很好。就我們正在做的事情而言，保羅和我們的團隊——而且大部分庫存在很大程度上是核心。

So we can work through season, about 1/3 is seasonal. We don't have a lot of obsolete. The way we do have obsolete, we are marking that down and selling it, and that was -- what was impacted our gross margins in Q3. We went in thinking gross margins based on the items that we wouldn't be selling full price would be impacted about 100 basis points this probably 130, 140 basis point impact. We've factored that in Q4, too. So where we can, we are moving quickly around the world to mark things down. The other thing that we're doing is that we did reduce our buys for the first half of 2023 big time.

所以我們可以按季節工作，大約 1/3 是季節性的。我們沒有很多過時的。我們確實已經過時的方式，我們將其標記下來並出售它，這就是影響我們第三季度毛利率的原因。我們認為基於我們不會以全價出售的商品的毛利率會受到大約 100 個基點的影響，這可能是 130、140 個基點的影響。我們在第四季度也考慮到了這一點。因此，我們會在可能的情況下迅速在全球範圍內進行標記。我們正在做的另一件事是，我們確實減少了 2023 年上半年的購買量。

It's -- right now, it's down 25% because we -- as we build inventory for the ERP installation, it's important to reduce that. In terms of geographic split, Paul, the buildup is largely in the U.S., which is primarily a core market. And the reason for that build is also driven by the fact that it's largely core. And it's the ERP that's helping drive that. What happens with the ERP implementation is we do stop shipping for about 6 to 8 weeks, and that's why we're trying to work through it. And so to your point, 1/3 of the inventory is seasonal. It varies by geography, but the U.S. is more core than seasonal.

它——現在，下降了 25%，因為我們——當我們為 ERP 安裝建立庫存時，減少庫存很重要。就地理劃分而言，Paul 主要集中在美國，這主要是一個核心市場。該構建的原因還在於它主要是核心這一事實。正是 ERP 幫助推動了這一點。 ERP 實施的結果是我們確實會停止發貨大約 6 到 8 週，這就是我們試圖解決它的原因。因此，就您而言，1/3 的庫存是季節性的。它因地理位置而異，但美國更核心而非季節性。

Our next question comes from Omar Saad of Evercore.

我們的下一個問題來自 Evercore 的 Omar Saad。

I wanted to see if you guys could talk about the denim cycle, especially as it relates to your outlook for next quarter? Are you seeing a slowdown, a broader slowdown in the denim cycle? There are other companies out there in the category also seem to see a little bit softer trends at retail. And especially in light of the reopening as people get dressed up again and maybe getting a little bit more dressy again, are you seeing that affect the casualization trend?

我想看看你們是否可以談論牛仔週期，特別是因為它與您對下個季度的展望有關？您是否看到牛仔週期的放緩，更廣泛的放緩？該類別中的其他公司似乎也看到了零售業的疲軟趨勢。尤其是考慮到重新開放，因為人們再次盛裝打扮，也許又變得更加考究，您是否看到這會影響休閒化趨勢？

Yes. We've referred to some of this in the prepared remarks, Omar, but just to give you some real hard category data and I'm quoting NPD data, on a past 12-month basis -- this is all through the end of August. On a past 12-month basis, the total apparel was up 11%, denim was up 10%. By the way, we were up more than that on a past 12-month basis. And then in the script, we referred to the most recent 3 months through the end of August, so in July, August, where there was a significant slowdown was denim down mid-single digits and total apparel up 1.

是的。我們在準備好的評論中提到了其中的一些，奧馬爾，但只是為了給你一些真正的硬類別數據，我引用的是過去 12 個月的 NPD 數據——這一直到 8 月底.在過去 12 個月的基礎上，服裝總量增長了 11%，牛仔服增長了 10%。順便說一句，我們在過去 12 個月的基礎上上漲了更多。然後在腳本中，我們提到了截至 8 月底的最近 3 個月，所以在 7 月、8 月，出現顯著放緩的是牛仔布下降了中個位數，而總服裝則上升了 1。

While I'm not crazy about those numbers, what is good is if those kind of validate the narrative that has been out there, which is that there has been this transitioning into more formal attire people go back to weddings and back into the office, et cetera, et cetera. And it does -- that data does validate that. And you can put our results up against that, and we outperformed denim and outperformed total apparel, too, during that same 3-month period of time. I don't expect it's going to stay that way for long.

雖然我對這些數字並不感到瘋狂，但如果這些數字證實了已經存在的說法，那就是已經過渡到更正式的著裝，人們回到婚禮並回到辦公室，這很好，等等等等。它確實 - 數據確實驗證了這一點。您可以將我們的結果與之相提並論，在同樣的 3 個月期間，我們的表現優於牛仔布，也優於整體服裝。我不希望它會長期保持這種狀態。

I -- and that data, by the way, is U.S.-only data. The casualization trend, we've talked about this for quite some time. It's no longer just a U.S. trend. It is a global trend on (inaudible). Our business skews to men, men are going back into the office wearing jeans. And we expect that denim is going to recover. I've said many, many times before, we're the market leader, and I believe it's incumbent upon market leaders to drive category growth. And we're going to continue to focus on doing that on the things that are within our control, driving innovation. We're going to continue to focus on innovation and continuing to support the business with strong marketing and marketing support.

我——順便說一句，這些數據是美國獨有的數據。休閒化趨勢，我們已經討論了很長時間。這不再只是美國的趨勢。這是（聽不清）的全球趨勢。我們的業務偏向於男性，男性穿著牛仔褲回到辦公室。我們預計牛仔布將會復蘇。我之前說過很多很多次，我們是市場領導者，我相信市場領導者有責任推動品類增長。我們將繼續專注於我們控制範圍內的事情，推動創新。我們將繼續專注於創新，並通過強大的營銷和營銷支持繼續支持業務。

And the combination of those things should drive growth. Let's not forget too that weather probably played a factor during this period of time as well. And as the season changes, that's been always pretty favorable. So the last thing I would add is, Harmit referred to it in the script, but we did kind of put out there the September U.S. direct-to-consumer sales, which were up double digits. So I don't think we're going to see the category get back to double-digit levels of growth that we've seen over the last 12 months.

這些東西的結合應該會推動增長。我們也不要忘記，在這段時間裡，天氣可能也是一個因素。隨著季節的變化，這總是非常有利的。所以我要補充的最後一件事是，哈米特在劇本中提到了它，但我們確實公佈了 9 月份美國直接面向消費者的銷售額，增長了兩位數。因此，我認為我們不會看到該類別恢復到過去 12 個月所見的兩位數增長水平。

But I do expect that the long-term trend for denim is going to be kind of mid-single-digit levels of growth over the long term. And the shorter the time frame you look at, the more volatility there is in the data. And I suspect over time, we're going to see denim bounce back to kind of that mid-single-digit level over the next few months. So hopefully, that addresses what you're looking for.

但我確實預計，從長遠來看，牛仔布的長期趨勢將是中個位數的增長水平。您查看的時間範圍越短，數據中的波動性就越大。我懷疑隨著時間的推移，我們會看到牛仔佈在接下來的幾個月裡反彈到那種中個位數的水平。因此，希望這可以解決您正在尋找的內容。

Our next question comes from Matthew Boss of JPMorgan. Okay. Our next question comes from Chris Nardone of Bank of America.

我們的下一個問題來自摩根大通的 Matthew Boss。好的。我們的下一個問題來自美國銀行的 Chris Nardone。

Can you discuss expectations for the trajectory of your European business relative to your 3Q results, even looking out to the first half of next year? And are there any particular countries that are showing notable weakness and any difference in how you're thinking about wholesale and DTC in the region? That would be great.

您能否討論您對歐洲業務發展軌跡相對於第三季度業績的預期，甚至展望明年上半年？是否有任何特定國家表現出明顯的弱點，以及您對該地區批發和 DTC 的看法有什麼不同？那很好啊。

Yes. I would say our cards are on the table here, Chris. We're probably most cautious about the business in Europe as we look ahead. As we talked in the script, we saw some countries in Europe in Q3 performed quite well. Both the U.K. and Spain were up nicely. We also had a number of stronger markets across Europe also perform well, performing up versus prior year on a constant currency basis. But there were other markets that were notably soft, particularly in Germany and some other markets in the north. If you strip out the impact of Russia, Europe was down by mid-single digits, 5% for the quarter.

是的。克里斯，我想說我們的牌在這兒。展望未來，我們可能對歐洲業務最為謹慎。正如我們在劇本中所說，我們看到歐洲的一些國家在第三季度的表現相當不錯。英國和西班牙的表現都不錯。我們在歐洲還有一些更強勁的市場也表現良好，按固定匯率計算，與去年相比表現有所上升。但還有其他市場明顯疲軟，尤其是德國和北部的其他一些市場。如果剔除俄羅斯的影響，歐洲下降了中個位數，本季度下降了 5%。

And as we look ahead, the guidance that we provided does kind of build in some cautiousness, I guess, with respect to Europe. And I suspect we'll see more as the winter begins to hit. What is the impact on the consumer over there as they face much steeper -- not just a much steeper inflation, but much steeper energy costs as well. So the good thing about having such a broad, global portfolio is we've got other markets, as Harmit said, that are performing exceptionally well that can help to offset some of the softness.

展望未來，我們提供的指導確實有點謹慎，我猜，關於歐洲。我懷疑隨著冬天的到來，我們會看到更多。對那裡的消費者有什麼影響，因為他們面臨著更加陡峭的 - 不僅是更加陡峭的通貨膨脹，而且還有更加陡峭的能源成本。因此，擁有如此廣泛的全球投資組合的好處是，正如哈米特所說，我們還有其他市場表現異常出色，有助於抵消部分疲軟。

The brand is still incredibly strong in Europe, but we're seeing our wholesale customers being cautious to their open buy budget and how they're planning inventory. And we are seeing, as I said, some bifurcation in our business even through the third quarter, and we're kind of playing that through as we think about the future.

該品牌在歐洲仍然非常強大，但我們看到我們的批發客戶對他們的公開購買預算以及他們如何計劃庫存持謹慎態度。正如我所說，即使到第三季度，我們也看到我們的業務出現了一些分歧，當我們考慮未來時，我們正在努力解決這個問題。

Our next question comes from the line of Alex Straton of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Straton。

Can you just talk about the flexibility your wholesale partners have as it relates to canceling orders if they were to see more of a slowdown? So put differently at this moment can they cancel any of their fourth quarter orders, your fourth quarter, the first quarter or the second quarter and by how much? And also, what kind of support would you guys offer should your retail partners have too much inventory as it kind of builds up in the broader space?

你能談談你的批發合作夥伴在取消訂單方面的靈活性，如果他們看到更多的放緩？因此，此時換一種說法，他們可以取消任何第四季度的訂單，您的第四季度，第一季度或第二季度，取消多少？此外，如果您的零售合作夥伴在更廣闊的空間中積累過多的庫存，你們會提供什麼樣的支持？

Well, first, I'll answer your last question first. As we said on the call, inventory levels across wholesale, broadly speaking, in the U.S., in particular, are generally in line with where they were pre-pandemic. And so relatively reasonable. Now it does vary from customer to customer. Most customers are kind of on their own after they own the product. They manage their promotion and markdown budget. We support it, but we support it within traditional guidelines so the preparing across the marketplace and are treating all customers equivalently.

嗯，首先，我先回答你的最後一個問題。正如我們在電話會議上所說，從廣義上講，尤其是在美國，批發的庫存水平通常與大流行前的水平一致。所以比較合理。現在它確實因客戶而異。大多數客戶在擁有產品後都會靠自己。他們管理他們的促銷和降價預算。我們支持它，但我們在傳統準則範圍內支持它，因此在整個市場上進行準備並平等對待所有客戶。

In terms of canceling orders, we -- let's say that it's a negotiation at the end of the day. If we've made products specifically for a customer, we hold the line very, very tight. So we do a number of products that are very, very specific to a particular customer. And if we're cutting product and making product for a specific customer, they own it at the end of the day. And we try to hold the line very, very hard on that. If it's a product that is more marketplace product or it's a product that we can put in our outlet stores, then it is a bit more of a negotiation. I hope that helps, Alex.

在取消訂單方面，我們 - 假設這是一天結束時的談判。如果我們專門為客戶製造產品，我們會非常非常嚴格地控制生產線。因此，我們製作了許多針對特定客戶非常、非常具體的產品。如果我們為特定客戶切割產品並製造產品，他們最終擁有它。我們試圖非常非常努力地堅持這一點。如果它是一種更具市場性的產品，或者它是一種我們可以放在我們的直銷店的產品，那麼它更像是一種談判。我希望這會有所幫助，亞歷克斯。

Our next question comes from Ike Boruchow of Wells Fargo.

我們的下一個問題來自富國銀行的 Ike Boruchow。

So Chip, I just wanted to go back to the prepared remarks and just dig in a little bit more for me. So I think when you're speaking to the business at a high level, the business is being guided to negative constant currency growth in 4Q. I think you said you expect things to remain challenging over the next few quarters. I guess I know you're not going to give us guidance for next year, but can you put some context behind that, how exactly we should think about the business based on the order book or any other visibility you may have right now?

所以Chip，我只是想回到準備好的評論，為我挖掘更多內容。因此，我認為當您在高層與業務交談時，該業務被引導至第四季度的負固定貨幣增長。我想你說過你預計在接下來的幾個季度裡事情會繼續充滿挑戰。我想我知道你不會在明年給我們提供指導，但你能否在這背後提供一些背景信息，我們應該如何根據訂單簿或你現在可能擁有的任何其他可見性來考慮業務？

Yes. And by the way, guys, part of the reason I hesitated on that last call, the Blue Engines are in town, and we just got straight a minute ago. So it's crazy. We've got jets right over our heads here. So I guess the way I would characterize the way we're looking ahead, and I talked about this a little bit with respect specifically to Europe. There's just a lot of uncertainty right now. I mean, forecasting during the pandemic was pretty tough. But it's pretty challenging right now to get a pretty good hold on where is the consumer heading and where is the business setting, especially with customers and their open buy budgets.

是的。順便說一句，伙計們，我在最後一次通話中猶豫的部分原因是，藍色引擎在城裡，而我們一分鐘前才剛剛開始。所以這很瘋狂。我們這裡有噴氣式飛機。所以我想我會描述我們展望未來的方式，我特別談到了歐洲。現在有很多不確定性。我的意思是，在大流行期間進行預測非常困難。但是，現在要很好地掌握消費者的方向和業務環境的位置是相當具有挑戰性的，尤其是在客戶和他們的公開購買預算方面。

And that uncertainty is caused by some of the noise and confusion and a lot of the economic signals that we're getting. Inflation is still relatively strong. We may see that begin to change over the next month or couple of months. But we're at or near full employment and wages are growing. Wages are growing across all incomes. Bank accounts are still reasonably healthy, thanks to the pandemic impact, particularly in the middle and upper segments of income. So there's some data that you can look at and say things look pretty good, but there is a ton of uncertainty.

這種不確定性是由一些噪音和混亂以及我們得到的許多經濟信號造成的。通脹還是比較強勁的。我們可能會看到在接下來的一個月或幾個月內開始發生變化。但我們處於或接近充分就業狀態，工資也在增長。所有收入的工資都在增長。由於大流行的影響，銀行賬戶仍然相當健康，尤其是在中高收入階層。因此，您可以查看一些數據並說情況看起來不錯，但存在大量不確定性。

Inflation continues to have more and more of an impact. As I said, in Europe, a lot of concern about what's going to happen during the winter with energy costs, particularly across that marketplace. But as I said, it is more of these Western markets where we're seeing these impacts we have other parts of the business that are performing incredibly well. And even within our own portfolio in the West, our DTC business is performing pretty well. And so our balanced portfolio, the strength that we're seeing in Asia, the strength that we're seeing in Latin America, the strength that we're seeing in our women's business, on Dockers, Beyond Yoga being completely additive at this point. We begin to lap that now.

通貨膨脹繼續產生越來越大的影響。正如我所說，在歐洲，人們非常擔心冬季能源成本會發生什麼，尤其是整個市場。但正如我所說，更多的是這些西方市場，我們看到了這些影響，我們的其他業務部分錶現非常好。即使在我們自己在西方的投資組合中，我們的 DTC 業務也表現良好。所以我們平衡的投資組合，我們在亞洲看到的實力，我們在拉丁美洲看到的實力，我們在女性業務中看到的實力，在 Dockers 上，Beyond Yoga 在這一點上完全可以疊加.我們現在開始討論。

These are helping to offset some of these speed bumps that we're seeing in other markets. But it is too early to comment on guidance. I can tell you guys, honestly, hand on a Bible, I haven't even seen the numbers as we're developing our plan at this point. But I expect that we will be reflecting kind of the realities as we see it with some of these uncertainties at least through probably the first half of next fiscal year. So I hope that helps, without giving you any specific (inaudible) fact.

這些有助於抵消我們在其他市場看到的一些減速帶。但現在就指導意見發表評論還為時過早。老實說，我可以告訴你們，手上一本聖經，我什至還沒有看到我們正在製定計劃的數字。但我預計，至少在下一財年上半年可能會反映我們所看到的現實，其中一些不確定性。所以我希望這會有所幫助，但不會給你任何具體（聽不清）的事實。

Ike. Chip, the only thing I'd build on is from a cost perspective, what we're seeing. So Ike on one hand, we built up inventory as we close the year, but we've built up inventory when cotton was much lower than what it was for the first half of next year. As you -- as we see the future of cotton for the second half, cotton down to a little over $0.80, which is the normalized. So there should be some tailwind there in 2023. The second is some reduction in distribution costs and freight costs as we start thinking through the second half of next year.

艾克。芯片，我唯一要建立的是從成本的角度來看，我們所看到的。所以一方面艾克，我們在年底時增加了庫存，但是當棉花遠低於明年上半年的水平時，我們已經建立了庫存。正如你——正如我們看到下半年棉花的未來，棉花跌至略高於 0.80 美元，這是正常化的。因此，2023 年應該會有一些順風。第二是隨著我們開始考慮明年下半年，分銷成本和貨運成本會有所降低。

And so I think those are the things that probably help. But as Chip said, we are here for the long term, and we'll take that view. You saw our expectations we said in the Investor Day, and so we have a north star that we're working on.

所以我認為這些可能會有所幫助。但正如奇普所說，我們是長期存在的，我們會採取這種觀點。你看到了我們在投資者日所說的期望，所以我們有一顆正在努力的北極星。

Our next question comes from Laurent Vasilescu of an Exane BNP Paribas.

我們的下一個問題來自 Exane BNP Paribas 的 Laurent Vasilescu。

Chip, I think you mentioned the value channel in the U.S. was down 12%, but then ex that, the U.S. wholesale was actually up mid-single digits for the quarter. How do we think about those guardrails for the fourth quarter. Do they converge? Does the value channel get a little bit better and the rest of the business gets a little bit worse? Any guardrails around that? And then I think you mentioned ex China, Asia was up 68%. I presume, obviously, that was on a C2C basis. Just curious to know what you're seeing in China. I know you have a small business there, but any color on what you're seeing quarter-to-date trends? Would be very helpful.

奇普，我想你提到美國的價值渠道下降了 12%，但除此之外，美國批發市場在本季度實際上增長了中個位數。我們如何看待第四季度的那些護欄。他們會聚嗎？價值渠道是否變得更好，而其他業務變得更糟？周圍有什麼護欄嗎？然後我想你提到除中國外，亞洲上漲了 68%。顯然，我認為這是基於 C2C 的。只是想知道你在中國看到了什麼。我知道您在那裡有一家小企業，但是您看到的季度至今趨勢有什麼顏色嗎？會很有幫助。

Yes. The -- why don't you talk, China? I'll just reference, so as we think at 4. And quarter 4 we're saying constant currency slightly down growth and reported down 6%. Just give us 1 second to let the blue engines do their thing. So the FX headwind, very similar to quarter 3, and that's reflected in the difference in cost (inaudible). The change in the constant currency growth in Q3 down to slightly -- down in quarter 4 is driven by really 2 factors. One is Asia has been growing at 50%, 60% is going to start lapping the normalized base.

是的。 ——你為什麼不說話，中國？我只是參考一下，所以我們認為是 4。第四季度我們說固定匯率略有下降，報告下降了 6%。只需給我們 1 秒時間，讓藍色引擎完成他們的工作。因此，外匯逆風與第三季度非常相似，這反映在成本差異上（聽不清）。第三季度不變貨幣增長的變化下降到第四季度的輕微下降，這實際上是由兩個因素驅動的。一是亞洲一直以 50% 的速度增長，60% 將開始覆蓋標準化基數。

So we expect Asia to grow in the high teens, but not at this level. So that's one piece. And the second is, as we think about the Americas, a combination of the supply chain disruption, which we think continues into Q4 and begins to improve Q1 onwards as well as U.S. wholesale down versus up. That's how we're building the expectation. We're working like crazy to deliver better numbers, but that's the expectation that we're setting aside. Going to China chip over to you. I think China was down in Q3, 17%, but it's only 2%, 3% of our business. And as we said in Investor Day, we don't expect this business be a major contributor to our growth longer term.

因此，我們預計亞洲將在青少年時期增長，但不會達到這個水平。所以這是一件。第二個是，當我們考慮美洲時，供應鏈中斷的組合，我們認為這種中斷會持續到第四季度，並從第一季度開始改善，以及美國的批發量下降與上升。這就是我們建立期望的方式。我們正在瘋狂地工作以提供更好的數字，但這是我們擱置的期望。去中國給你籌碼。我認為中國在第三季度下降了 17%，但僅占我們業務的 2%、3%。正如我們在投資者日所說的那樣，我們預計這項業務不會成為我們長期增長的主要貢獻者。

There you go. You just answered it.

你去吧。你剛剛回答了。

Our next question comes from Jay Sole of UBS.

我們的下一個問題來自瑞銀的 Jay Sole。

My question is can you elaborate a little bit on the supply chain challenges you experienced in the quarter? And maybe help us understand maybe some of the differences that have played out versus your expectation at the end of last quarter? Maybe you could start there, that would be great.

我的問題是您能否詳細說明您在本季度遇到的供應鏈挑戰？或許可以幫助我們了解上個季度末與您的預期相比可能存在的一些差異？也許你可以從那裡開始，那會很棒。

Jay, overall, what we'd say is all the parts of supply chain are indeed improving. We're still feeling the impacts of disruption. We additionally have some condition within our logistics and distribution network due to inventory build that we did to protect Q1 revenue as well as our ERP transition. With this transaction comes a loss of efficiency in our distribution network. And so we think Q4 will be the peak, and we expect to start improvements in Q1. And to offset this and build -- as I said earlier, we're kind of reducing our H1 by big time.

傑伊，總的來說，我們要說的是供應鏈的所有部分確實在改善。我們仍然感受到中斷的影響。由於我們為保護第一季度收入以及我們的 ERP 過渡所做的庫存建設，我們的物流和分銷網絡也有一些條件。這筆交易導致我們的分銷網絡效率下降。所以我們認為第四季度將是高峰，我們希望在第一季度開始改進。為了抵消這一點並建立 - 正如我之前所說，我們正在大幅減少我們的 H1。

And so that by the end of quarter 2, inventory levels return back to normal. And the congestion is largely between the ports, the transloader and goods on our distribution center a lot. So we're working through it. And the majority of it is largely in the U.S. And U.S. is primarily a core market. So we're working through that. We're working through the same with our customers, to ensure there's minimal disruption, but it does hurt overall revenue.

因此，到第二季度末，庫存水平恢復正常。而且主要是港口、轉運站和我們配送中心的貨物之間的擁擠。所以我們正在努力解決它。其中大部分主要在美國，而美國主要是一個核心市場。所以我們正在努力解決這個問題。我們正在與我們的客戶進行同樣的工作，以確保將乾擾降到最低，但這確實會損害整體收入。

Yes. The only thing I would add is you probably heard others about supply chain improving significantly. Their starting point was a lot different than our starting point. Our supply chain issues are kind of in line with the issues that we had last quarter, 2 to 3 points worth of growth left on the table due to supply chain issues. We didn't have the major supply chain issues the way some of our peers did 9 to 12 months ago because our eggs are spread across more baskets than relative to our peers who have so much of their supply chain concentrated in 1 or 2 markets. So the change on change is not as significant for us as it has been for some of the others.

是的。我唯一要補充的是，您可能聽說過其他人關於供應鏈顯著改善的消息。他們的出發點與我們的出發點有很大不同。我們的供應鏈問題與我們上個季度的問題有些一致，由於供應鏈問題，還有 2 到 3 個百分點的增長留在了桌面上。我們沒有像我們的一些同行在 9 到 12 個月前那樣遇到主要的供應鏈問題，因為與我們的同行相比，我們的雞蛋分佈在更多的籃子裡，他們的供應鏈大部分集中在 1 或 2 個市場。因此，變化對我們來說並不像其他一些人那樣重要。

Our next question comes from Dana Telsey of the Telsey Group.

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

As you think of the current macro environment and what's happening in the channels, how are you thinking of the level of promotion, whether it's by your own DTC, e-commerce or store? What's happening on the wholesale side by region also? And with the offsets on the gross margin side, are there offsets in terms of the magnitude, whether it happens to be freight or whether it happens to be anything else that we should note? How do you see the gross margin cadence evolving?

考慮到當前的宏觀環境和渠道正在發生的事情，您如何看待促銷水平，無論是通過您自己的DTC，電子商務還是商店？各地區的批發市場也發生了什麼？對於毛利率方面的抵消，在幅度方面是否存在抵消，無論是運費還是我們應該注意的其他任何東西？您如何看待毛利率的變化？

Yes. So Dana, thanks for the question. Our gross margin -- so when we started the second half of the year, I think we publicly said we've built in probably 100 basis points contraction in gross margin in the second half, similar in Q3, similar in Q4. And that was really saying, okay, what percentage of our products we will be not selling at full price. As the quarter progressed, promotion levels increased. We had some seasonal products. They wanted to markdown in the Western part of the world.

是的。所以，達娜，謝謝你的問題。我們的毛利率——所以當我們開始下半年時，我認為我們公開表示我們已經在下半年建立了大約 100 個基點的毛利率收縮，與第三季度相似，在第四季度相似。這真的是在說，好吧，我們不會以全價出售我們的產品的百分比。隨著季度的推進，晉升水平有所提高。我們有一些季節性產品。他們想在世界西部地區降價。

Quarter 3, the gross margin impact was about an additional 30 basis points. And as we look at quarter 4, it's about 30 more because we think the environment is a little bit more promotional, and we've got in some inventory that we'd like to mark down and sell. So that's how we're thinking about it. At the end of the day, our gross margins for the year will be slightly lower than last year, but still significantly higher, maybe close to 400 basis points relative to '19. So we're protecting the premise that we continue to grow our gross margins in the longer term. Does that help you, Dana?

第三季度，毛利率影響大約增加了 30 個基點。當我們查看第 4 季度時，大約有 30 個，因為我們認為環境更具促銷性，並且我們有一些庫存，我們想降價出售。所以我們就是這麼想的。歸根結底，我們今年的毛利率將略低於去年，但仍顯著提高，相對於 19 年可能接近 400 個基點。因此，我們正在保護我們在長期內繼續增加毛利率的前提。這對你有幫助嗎，達娜？

Yes. And as you see your own channels with stores and online, how do you see the cadence there?

是的。當您看到自己的商店和在線渠道時，您如何看待那裡的節奏？

So I'll take that one. So let's put it this way, Dana, we're not going to be leading an aggressive promotional environment, but we're not going to be left uncompetitive. Just as we did in the third quarter when we saw that the promotional environment was heating up, we took steps to be competitive. But we're not in a place where we've got to go out and passively liquidate a lot of inventory. So we're not going to lead it. And it's not going to be less uncompetitive.

所以我會拿那個。所以讓我們這樣說吧，Dana，我們不會領導一個激進的促銷環境，但我們不會失去競爭力。正如我們在第三季度看到促銷環境升溫時所做的那樣，我們採取了措施來提高競爭力。但我們不是在一個必須走出去被動清算大量庫存的地方。所以我們不會領導它。而且它的競爭力不會降低。

That may mean -- that may not mean that we're going to go all the way to 70% off if everybody else is going to 70% off. It may mean that we go for fewer weeks, but we'll be competitive, but we're also -- at the end of the day, we are about the strength of our brand and an overly promotional -- hot promotions brand. It's not good for brand integrity. And so we're going to do our best to protect gross margin without being competitive in the marketplace.

這可能意味著 - 這可能並不意味著如果其他人都將享受 70% 的折扣，我們將一直享受 70% 的折扣。這可能意味著我們去的時間更少，但我們將具有競爭力，但我們也是 - 歸根結底，我們是關於我們品牌的實力和過度促銷的 - 熱門促銷品牌。這對品牌完整性不利。因此，我們將盡最大努力保護毛利率，而不會在市場上具有競爭力。

And just on marketing, what are your plans for marketing and marketing expense as we go through this time period?

就營銷而言，當我們經歷這段時間時，您對營銷和營銷費用的計劃是什麼？

Yes. I probably should have hit this earlier, but whether you're thinking about Q4 or thinking about next year, we're going to continue to invest in the long term. And we're going to continue to make investments in DTC and e-commerce because those are strategic for us, and we're going to continue to invest in building our brands.how tough it jets out there, those are the things that will differentiate. (inaudible)

是的。我可能應該早點做到這一點，但無論您是考慮第四季度還是考慮明年，我們都將繼續進行長期投資。我們將繼續對 DTC 和電子商務進行投資，因為這些對我們來說具有戰略意義，我們將繼續投資於建立我們的品牌。它有多艱難，這些都是將區分。 （聽不清）

At this time, I'd like to turn the call back over to Chip Bergh for closing remarks.

在這個時候，我想把電話轉回給 Chip Bergh 做閉幕詞。

Okay. Latif?

好的。拉提夫？

Yes, sir.

是的先生。

Okay. Thanks, everyone, for dialing in. And we will talk to you again not until the end of January. So I wish you all happy holidays, a good fall and happy holidays, and we'll speak with you at the end of our fiscal year in late January. Have a good holiday, and thanks for dialing in today, everyone.

好的。謝謝大家撥入。我們將在 1 月底之前再次與您交談。因此，我祝大家節日快樂，秋天愉快，節日快樂，我們將在 1 月下旬的財政年度結束時與您交談。祝大家假期愉快，感謝大家今天撥通電話。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。