Levi Strauss & Co (LEVI) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company third-quarter fiscal 2024 earnings conference call for the period ending August 25, 2024. (Operator Instructions)

女士們、先生們，美好的一天，歡迎參加 Levi Strauss & Company 截至 2024 年 8 月 25 日的 2024 財年第三季度收益電話會議。

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.

本次電話會議正在錄音中，未經本公司書面許可，不得全部或部分複製。本次電話會議將透過網路進行廣播，並且可以在公司網站 levistrauss.com 上重播四分之一的網路廣播。

I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company.

我現在想將電話轉給李維斯公司投資者關係副總裁 Aida Orphan。

Thank you for joining us on the call today to discuss the results for our third quarter fiscal 2024. Joining me on today's call are Michelle Gass, our President and CEO; and Harmit Singh, our Chief Financial and Growth Officer. We've 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.

感謝您今天參加我們的電話會議，討論 2024 財年第三季的業績。以及我們的財務和成長長 Harmit Singh。我們已在我們網站 Investors.levistrauss.com 的 IR 部分的收益發布中發布了完整的第三季度財務業績。今天電話會議的網路廣播連結也可以在我們的網站上找到。

We'd like to remind you that we will be making forward-looking statements on this call, which involve risks and uncertainties. Actual results could differ materially from those contemplated by our forward-looking statements.

我們想提醒您，我們將在本次電話會議中做出前瞻性陳述，其中涉及風險和不確定性。實際結果可能與我們前瞻性陳述中預期的結果有重大差異。

Please review our filings with the SEC, in particular, the Risk Factors section of our Form 10-K for the year ended November 26, 2023, 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.

請查看我們向 SEC 提交的文件，特別是截至 2023 年 11 月 26 日的年度 10-K 表格的風險因素部分，以了解可能導致我們的結果出現差異的因素。另請注意，本次電話會議的前瞻性陳述是基於我們今天掌握的信息，我們不承擔更新任何這些陳述的義務。

During this call, we will discuss certain non-GAAP financial measures. These non-GAAP measures are not intended to be a substitute for our GAAP results. Reconciliations of our non-GAAP measures to their most comparable GAAP measures are included in today's press release

在本次電話會議中，我們將討論某些非公認會計準則財務指標。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。我們的非公認會計原則衡量標準與其最具可比性的公認會計原則衡量標準的對帳已包含在今天的新聞稿中

Reconciliation of non-GAAP forward-looking information to the corresponding GAAP measures, however, cannot be provided without unreasonable efforts due to the challenge in quantifying various items including, but not limited to, the effects of foreign currency fluctuations, taxes, and any future restructuring, restructuring-related severance, and other charges.

然而，由於量化各種項目（包括但不限於外幣波動、稅收和任何未來的影響）方面存在挑戰，如果不付出不合理的努力，就無法將非公認會計原則前瞻性資訊與相應的公認會計原則措施進行核對。

Finally, this call is being webcast on our IR website and a replay of this call will be available on the website shortly. Please note that Michelle and Harmit will be referencing constant currency revenue numbers, unless otherwise noted. Today's call is scheduled for one hour, so please limit yourself to one question at a time to give others the opportunity to have their questions addressed.

最後，該電話會議正在我們的 IR 網站上進行網路直播，並且很快將在該網站上提供該電話會議的重播。請注意，除非另有說明，米歇爾和哈米特將引用固定貨幣收入數字。今天的電話會議預計持續一小時，因此請一次只回答一個問題，以便其他人有機會得到解決。

And now I'd like to turn the call over to Michelle.

現在我想把電話轉給米歇爾。

Thank you, and welcome, everyone, to today's call. In Q3, net revenues increased 2% in constant currency and 3% when adjusting for the exit of the DENIZEN business. While we had higher expectations for the quarter, we saw acceleration versus H1 driven by the Levi's brand, which grew 5% globally in Q3, marking the best quarterly growth for Levi's in two years.

謝謝大家，歡迎大家參加今天的電話會議。第三季度，以固定匯率計算，淨收入成長了 2%，根據 DENIZEN 業務的退出進行調整後，淨收入成長了 3%。雖然我們對本季抱持更高的預期，但我們看到了李維斯品牌推動的上半年業績加速成長，第三季全球成長了 5%，標誌著李維斯兩年來最好的季度成長。

We are pleased that the underlying fundamentals of our business are getting stronger and our key strategies continue to gain traction, including DTC up 12%, the US continuing to be positive, and Europe returning to growth.

我們很高興看到我們業務的基本面正在變得更加強勁，我們的關鍵策略繼續獲得牽引力，包括 DTC 成長 12%、美國持續樂觀、歐洲恢復成長。

Profitability continues to improve as evidenced by record Q3 gross margins of 60%, enabling us to deliver 250 basis points of adjusted EBIT margin expansion and double-digit adjusted diluted EPS growth. There are three areas that did not meet our expectations this quarter. Dockers, China, and Mexico, and we're implementing plans to address these headwinds while making strategic adjustments to position the company for the long term.

獲利能力持續改善，第三季毛利率達到創紀錄的 60%，使我們能夠實現 250 個基點的調整後息稅前利潤擴張和兩位數的調整後攤薄每股收益增長。本季有三個方面沒有達到我們的預期。碼頭工人、中國和墨西哥，我們正在實施計劃來應對這些不利因素，同時進行策略調整，以確保公司的長期定位。

First, through our transformational pivot to operating as a DTC-first company, we are narrowing our focus to realize the full potential of the Levi's brand as well as accelerate Beyond Yoga. Accordingly, we are undertaking an evaluation of strategic alternatives to the global Dockers business, including a sale or other strategic transactions.

首先，透過轉型為以 DTC 為先的公司運營，我們正在縮小重點，以實現 Levi's 品牌的全部潛力並加速 Beyond Yoga 的發展。因此，我們正在評估全球 Docker 業務的策略替代方案，包括出售或其他策略交易。

Dockers is a high-quality business with significant future opportunity. It continues to be a global leader in the khaki category with strong, well-established American heritage. We are committed to identifying the right path forward that enables both LS&Co. and Dockers to reach their maximum potential and value.

Dockers 是一家高品質的企業，未來機會巨大。它仍然是卡其色類別的全球領導者，具有深厚的美國傳統。我們致力於尋找正確的前進道路，使 LS&Co.和碼頭工人發揮最大的潛能和價值。

Second, while China only comprises approximately 2% of our overall business today, we continue to see significant long-term potential of this important market. While the work we've done to improve our business is showing green shoots, we are not satisfied with our overall performance and the macro backdrop has further exacerbated these challenges.

其次，雖然中國目前僅占我們整體業務的約 2%，但我們仍然看到這個重要市場的巨大長期潛力。雖然我們為改善業務所做的工作正在初見成效，但我們對整體業績並不滿意，宏觀背景進一步加劇了這些挑戰。

We are focused on the controllables and are taking decisive action to reset our business and improve our execution in this market. We've replaced our China Managing Director and have appointed a 15-year veteran of the company with a strong track record of performance in Asia as the interim leader. We have a strong tenured team in China who will continue to support this transition.

我們專注於可控因素，並正在採取果斷行動來重新調整我們的業務並提高我們在這個市場的執行力。我們更換了中國區董事總經理，並任命了一位在公司工作了 15 年、在亞洲有著出色業績記錄的資深人士作為臨時領導者。我們在中國擁有一支強大的終身團隊，他們將繼續支持這項轉變。

And third, while Latin America grew low single digits in the quarter, including double-digit growth in Mexico DTC, Mexico wholesale underperformed. Performance with our key customers has been mixed, some for reasons within our control, and others external, including a cybersecurity breach at one key customer that has impacted shipping. We're working closely with our wholesale partners to stabilize this business and have recently made changes aimed at improving our performance in this channel.

第三，雖然拉丁美洲本季實現低個位數成長，其中墨西哥 DTC 實現兩位數成長，但墨西哥批發表現不佳。我們與主要客戶的表現參差不齊，有些是我們控制範圍內的原因，有些是外部原因，包括一個關鍵客戶的網路安全漏洞影響了運輸。我們正在與批發合作夥伴密切合作，以穩定這項業務，並最近進行了一些變革，旨在提高我們在該管道的績效。

Before I turn to the details of the quarter, I want to underscore that we have the expertise in place to address these issues and make swift progress. In July, Gianluca Flore joined the company as Chief Commercial Officer for the Levi's brand. With 20-plus years of retail experience in the fashion sector, most recently as Chief Commercial Officer of Burberry, Gianluca brings a wealth of knowledge and expertise, including deep experience with the China market. I am thrilled to welcome him to the team.

在討論本季的細節之前，我想強調，我們擁有解決這些問題並取得迅速進展的專業知識。 7 月，Gianluca Flore 加入公司，擔任 Levi's 品牌首席商務長。 Gianluca 在時尚領域擁有 20 多年的零售經驗，最近擔任 Burberry 首席商務官，他帶來了豐富的知識和專業知識，包括對中國市場的豐富經驗。我很高興歡迎他加入團隊。

I will now talk through the quarter in the context of our strategies, starting with leading with our brand. Levi's continues to boost its global cultural relevance and brand heat with the brand growing 5% in the third quarter. Our growth is reflected in continued market share gains as we solidified our position as the number one women's denim brand in the US while maintaining our leadership in the men's US jeans category, in which we hold twice as much market share as our closest competitor.

現在，我將在我們的策略背景下討論本季的情況，首先從我們的品牌領導開始。 Levi's 持續提升其全球文化相關性和品牌熱度，第三季品牌成長 5%。我們的成長體現在市場份額的持續成長上，我們鞏固了作為美國第一女裝牛仔品牌的地位，同時保持了我們在美國男裝牛仔褲類別中的領先地位，在該類別中，我們的市場份額是最接近競爭對手的兩倍。

We also continue to gain share among high-income consumers supported by our efforts to elevate the brand. Our Levi's women's business remains robust, growing 11%, reflecting double-digit growth in both bottoms and tops.

在我們提升品牌的努力的支持下，我們也持續在高收入消費者中獲得份額。我們的 Levi's 女裝業務依然強勁，成長了 11%，下裝和上裝均實現兩位數成長。

Earlier this week, we took another significant step in reaffirming Levi's place at the center of culture through an unprecedented partnership with global icon, Beyoncé. The fully integrated global campaign titled Reimagined, is on a scale unlike anything in our recent history. The first chapter of the campaign debuted on Monday with subsequent chapters that will run through 2025.

本週早些時候，我們又邁出了重要一步，透過與全球偶像碧昂絲 (Beyoncé) 建立前所未有的合作夥伴關係，重申了 Levi's 在文化中心的地位。名為「Reimagined」的全面整合的全球活動的規模是我們近代歷史上前所未有的。活動的第一章於週一推出，後續章節將持續到 2025 年。

The campaign features core products like 501 '90s, original truckers, and Essential Tees and pays homage to classic Levi's ads through a modern reinterpretation focused on women and icons. We'll be activating the campaign across more than 3,000 direct-to-consumer touch points and throughout our e-commerce channels around the world. We're proud to see the celebration of two global icons come to life and look forward to connecting in new ways with our fans globally.

該活動以 501 '90 年代、原創卡車司機和 Essential Tees 等核心產品為特色，並透過以女性和偶像為重點的現代重新詮釋，向經典的 Levi's 廣告致敬。我們將在全球 3,000 多個直接面向消費者的接觸點以及整個電子商務管道中啟動此活動。我們很自豪看到兩位全球偶像的慶祝活動得以實現，並期待以新的方式與全球粉絲建立聯繫。

Moving to product, where our pipeline is strong and improving, let's start with our core bottoms business. Overall, Levi's bottoms grew 5% and 12% in DTC. As a denim leader, we continue to drive the category forward by leaning into our core while consistently delivering product newness. There's no better bellwether for the strength of our brand than the health of our iconic 501, which was up 11% in the quarter, with growth in both men's and women's.

轉向產品，我們的產品線很強大並且正在不斷改進，讓我們從我們的核心底部業務開始。總體而言，Levi's 下裝的 DTC 成長了 5% 和 12%。作為牛仔布領導者，我們透過專注於我們的核心，同時不斷提供新產品，繼續推動該類別向前發展。沒有什麼比我們標誌性 501 的健康狀況更好地體現我們品牌的實力了，該品牌本季度增長了 11%，男裝和女裝均實現增長。

Loose and baggy denim continues to become a larger part of our bottoms portfolio. We remain at the forefront of this trend with loose fit up 15% in the quarter, reflecting strength across genders and channels. And through the launch of the 555 for him and the XL for her, we continue to inject newness into the looser fit trend.

寬鬆的牛仔布繼續成為我們下裝產品組合的重要組成部分。我們仍然處於這一趨勢的前沿，寬鬆版型在本季度增長了 15%，反映了跨性別和跨渠道的優勢。透過推出男士 555 和女士 XL，我們繼續為寬鬆潮流注入新鮮元素。

Our overarching strategy is to expand from being a denim bottoms brand to becoming a head-to-toe denim lifestyle brand that starts with owning denim dressing, which includes denim skirts, denim dresses, western tops, denim jumpsuits, and more. For the third consecutive quarter, we saw triple-digit growth in dresses and skirts, the vast majority of which was denim.

我們的整體策略是從牛仔下裝品牌擴展到從頭到腳的牛仔生活風格品牌，從擁有牛仔服飾開始，包括牛仔裙、牛仔連身裙、西部上衣、牛仔連身褲等。連續第三個季度，我們看到洋裝和裙子出現三位數成長，其中絕大多數是牛仔布。

We're pleased with the ongoing traction in our Levi's tops business as revenue increased 8% for the quarter and 15% in DTC. Women's tops performed exceptionally well, up 12% and 21% in DTC, driven by positive performance in truckers, wovens, and non-graphic tees. All these contributed to women's being up 11% overall and women's DTC up 18%. Levi's men's tops were up 5%, fueled by DTC up 12%, with strength in wovens and outerwear in addition to newness and polos and sweaters.

我們對 Levi's 上衣業務的持續成長感到滿意，本季營收成長了 8%，DTC 營收成長了 15%。女式上衣表現異常出色，DTC 成長了 12% 和 21%，這主要得益於卡車司機、梭織 T 恤和無圖案 T 恤的積極表現。所有這些都導致​​女性整體成長 11%，女性 DTC 成長 18%。在 DTC 上漲 ​​12% 的推動下，Levi's 男士上衣上漲了 5%，除了新款、polo 衫和毛衣外，梭織布和外套也表現強勁。

The Levi's men's business grew low single digits overall and 9% in DTC this quarter as we continue to respond to shifting preferences towards more comfort and versatility in his closet. We are focused on delivering innovative fabrics and fits through innovations like Performance Cool, which was up quadruple digits in the quarter. And our recently launched non-denim performance tech series reflects the range we're able to offer our consumers, helping to drive 29% growth in Levi's men's non-denim bottoms for the quarter.

隨著我們繼續順應衣櫥偏好的轉變，Levi's 男裝業務整體呈現低個位數成長，DTC 成長 9%。我們專注於透過 Performance Cool 等創新提供創新面料和合身性，該產品在本季度增長了四位數。我們最近推出的非牛仔布性能技術系列反映了我們能夠為消費者提供的產品範圍，幫助推動 Levi's 男士非牛仔褲在本季度實現 29% 的成長。

Looking forward to the holiday season, we're doubling down on our winning strategies, including denim dressing, fashion fits like loose and baggy for men and women, and our tops expansion, including a denim inspired outerwear collection in time for cooler weather. We're excited to deliver a robust pipeline of newness to our fans as we enter the holiday season and into 2025.

展望假期季節，我們將加倍努力實施制勝策略，包括牛仔裝、男士和女士寬鬆、寬鬆的時尚款式，以及我們的上衣擴展，包括適合涼爽天氣的牛仔外套系列。隨著節日季節的到來和 2025 年的到來，我們很高興能夠為粉絲帶來大量新鮮事物。

Now shifting to DTC first. Our global direct-to-consumer business delivered another strong quarter of performance, up 12% on top of 13% growth in the prior year, driven by positive comp sales for the tenth consecutive quarter. Our growth was led by US DTC, which was up 12%, again driven by strong performance in brick-and-mortar retail. AURs in our US mainline business were up high single digits as consumers continue to gravitate toward our full-price, premium products.

現在先轉向 DTC。我們的全球直接面向消費者業務在連續第十個季度實現積極的可比銷售的推動下，在上一年增長 13% 的基礎上又實現了強勁的季度業績，增長了 12%。我們的成長由美國 DTC 帶動，成長了 12%，這再次受到實體零售強勁表現的推動。由於消費者繼續青睞我們的全價優質產品，我們美國主線業務的 AUR 成長了高個位數。

We continue to raise the bar on running high-performing stores and are encouraged by the strong store KPIs across our portfolio, including increased traffic, higher conversion, and improved AURs. These healthy metrics reflect consumers' positive response to both our product innovation and newness as well as improved in-stocks.

我們繼續提高營運高績效商店的標準，並受到我們產品組合中強大的商店 KPI 的鼓舞，包括增加的流量、更高的轉換率和改進的 AUR。這些健康的指標反映了消費者對我們的產品創新和新穎性以及庫存改善的正面反應。

E-commerce continues to outperform, up 18% and reflecting strength across all segments, supported by increases in traffic, UPT, and AUR. Ongoing initiatives to elevate our site and deliver a more premium, expanded online assortment are enhancing the consumer experience. We're seeing encouraging trends in consumer engagement with our global loyalty program, acquiring nearly 2 million new members in Q3, bringing our total member base to 37 million globally.

在流量、UPT 和 AUR 成長的支持下，電子商務持續表現出色，成長 18%，反映出所有細分市場的實力。我們不斷採取措施來提升我們的網站並提供更優質、更豐富的線上產品種類，從而增強消費者體驗。我們看到消費者參與我們的全球忠誠度計畫的趨勢令人鼓舞，第三季獲得了近 200 萬新會員，使我們的全球會員總數達到 3,700 萬。

Shifting to global wholesale. While this channel is seeing sequential improvement from down 6% in H1 to down 3% in Q3, excluding DENIZEN, it continued to be a headwind to our overall revenue growth. We are focused on ensuring this is a healthy, profitable business and this strategic focus is evident in the channel's gross margin increasing more than 500 basis points over prior year.

轉向全球批發。雖然該通路的環比改善從上半年下降 6% 到第三季下降 3%（不包括 DENIZEN），但它仍然是我們整體營收成長的阻力。我們致力於確保這是一項健康、盈利的業務，這一戰略重點體現在該渠道的毛利率比上一年增加了 500 個基點以上。

In US wholesale, the Levi's brand was down 2%. Levi's women's was again a bright spot, up low single digits in the quarter, including 4% growth in tops. We are encouraged by the return of Europe wholesale to growth, up 4% driven by strong demand for newness, and our forward wholesale order book in Europe continues to be positive in Q4.

在美國批發市場，Levi's 品牌下跌 2%。 Levi's 女裝再次成為亮點，本季實現低個位數成長，其中上衣成長 4%。我們對歐洲批發業恢復成長感到鼓舞，在新產品的強勁需求的推動下成長了 4%，而且我們在歐洲的遠期批發訂單在第四季度繼續保持積極勢頭。

We continue to feel good about the trends we're seeing in our global wholesale business overall. Sell-out trends are improving, including in the US and Europe, and customers are excited about our expanded assortments.

我們繼續對全球批發業務的整體趨勢感到滿意。包括美國和歐洲在內的銷售趨勢正在改善，客戶對我們擴大的品種感到興奮。

Turning now to our third strategy, powering the portfolio. Growing our business outside the US remains one of our largest opportunities and our international business grew 5% in the quarter. Importantly, Europe inflected to growth up 7%, including mid-single-digit growth in wholesale and 10% growth in DTC.

現在轉向我們的第三個策略，為產品組合提供動力。發展美國以外的業務仍然是我們最大的機會之一，本季我們的國際業務成長了 5%。重要的是，歐洲成長了 7%，其中批發業務實現了中個位數成長，DTC 成長了 10%。

Beyond Yoga was up 19% and acceleration from Q2 and driven by strength in wholesale and e-commerce. Under Nancy Green's leadership, we have reset the Beyond Yoga strategy to drive more disciplined growth and profitability. Despite the impairment charge we took, which Harmit will share more about, we are confident in this brand based on the strategic direction Nancy and her team have laid out and remain committed to fulfilling its long-term potential.

在批發和電子商務實力的推動下，Beyond Yoga 較第二季度成長了 19%。在南希·格林 (Nancy Green) 的領導下，我們重新制定了超越瑜伽 (Beyond Yoga) 策略，以推動更規範的成長和獲利能力。儘管我們承擔了減損費用（哈米特將詳細介紹這一點），但根據南希和她的團隊制定的策略方向，我們對這個品牌充滿信心，並繼續致力於發揮其長期潛力。

In closing, if you walk away from today's call with one thought, let it be that we're confident that we have the right strategies to fuel long-term profitable growth. The core of our business, the Levi's brand, remains strong, and we are accelerating growth across categories, channels, and the globe.

最後，如果您在結束今天的電話會議時有一個想法，那就是我們相信我們擁有正確的策略來推動長期獲利成長。我們業務的核心－李維斯品牌依然強勁，我們正在加速跨品類、通路和全球的成長。

Finally, I'd like to thank our incredible, talented, and passionate team around the world that is delivering outstanding service to our fans every day.

最後，我要感謝我們遍布世界各地的令人難以置信、才華橫溢且充滿熱情的團隊，他們每天為我們的粉絲提供出色的服務。

And with that, I will now turn it over to Harmit to provide more color on our financial performance and outlook.

現在，我將把它交給哈米特，為我們的財務表現和前景提供更多的資訊。

Thank you, Michelle. I want to start by emphasizing the confidence I have in our improved profitability and cash flows. In quarter three, we delivered significant margin expansion with adjusted EBIT dollars increasing 27% and adjusted EBIT margins leveraging 250 basis points.

謝謝你，米歇爾。首先我想強調我對我們獲利能力和現金流的改善充滿信心。第三季度，我們實現了利潤率大幅擴張，調整後息稅前利潤成長了 27%，調整後息稅前利潤率提高了 250 個基點。

This improvement drove double-digit adjusted diluted EPS growth despite a $0.05 headwind from tax while maintaining expense and inventory discipline and generating much higher cash flow through the first nine months of 2024.

儘管稅收帶來了0.05 美元的阻力，但這一改善推動了調整後攤薄每股收益實現兩位數增長，同時保持了費用和庫存紀律，並在2024 年前9 個月產生了更高的現金流。

While the top line came in on the low end of our guidance, we are encouraged by the acceleration of the Levi's brand globally, contributing to our ability to exceed our profitability targets. Other key factors driving our profitability improvement include the increase in Americas' profitability, driven by strength in gross margin.

雖然營收處於我們指引的低端，但我們對李維斯品牌在全球範圍內的加速發展感到鼓舞，這有助於我們超越獲利目標。推動我們獲利能力改善的其他關鍵因素包括在毛利率強勁的推動下美洲獲利能力的提高。

Our business in Europe, our highest-margin market, return to growth and continued improvement in the profitability of our direct-to-consumer channel, where we generated more than 350 basis points of operating margin expansion this quarter. On a year-to-date basis, this improved the DTC margins by 270 basis points versus last year.

我們在利潤率最高的市場歐洲的業務恢復成長，並持續改善直接面向消費者管道的獲利能力，本季我們的營業利潤率成長了 350 個基點以上。年初至今，DTC 利潤率比去年提高了 270 個基點。

This, combined with our continued focus on keeping inventories clean and maintaining discipline and promotional levels, allowed us to grow gross profit dollars approximately 2 times faster than adjusted SG&A dollars in quarter three resulting in higher flow-through of every incremental dollar of revenue. We expect this trend to further improve in quarter four.

再加上我們持續專注於保持庫存乾淨以及維持紀律和促銷水平，使我們在第三季度的毛利潤增長速度比調整後的銷售及行政管理費用增長約兩倍，從而使每增加一美元收入的流量更高。我們預計這一趨勢將在第四季度進一步改善。

Also, as we announced today, we are reviewing strategic alternatives for Dockers. This decision highlights our capital allocation discipline and will help us continue to become a more focused, faster-growing, higher-margin business with a portfolio of brands that have a long runway of profitable growth. We are working with external advisers to identify the right path forward that we believe will enable LS&Co. and Dockers to reach their maximum potential and value as independent businesses.

此外，正如我們今天所宣布的，我們正在審查 Docker 的策略替代方案。這項決定凸顯了我們的資本配置紀律，並將幫助我們繼續成為一家更專注、成長更快、利潤率更高的企業，擁有長期獲利成長的品牌組合。我們正在與外部顧問合作，以確定正確的前進道路，我們相信這將使 LS&Co.和碼頭工人作為獨立企業發揮最大潛力和價值。

And as we look into the fourth quarter, we expect the continuation of sequential revenue and profitability growth we have experienced this year. In quarter three versus H1 24, revenues accelerated 2 percentage points and adjusted EBIT margin expanded 4 percentage points.

當我們展望第四季時，我們預計今年的營收和獲利能力將繼續連續成長。與 24 年上半年相比，第三季的營收成長了 2 個百分點，調整後的息稅前利潤率成長了 4 個百分點。

As we head into Q4, top line growth progression will be fueled by strong momentum of the Levi's brand as well as DTC, wholesale, and Europe. Profit growth progression will be driven by the acceleration of revenue and project fuel savings. I will share more when I cover the outlook.

進入第四季度，李維斯品牌以及 DTC、批發和歐洲的強勁勢頭將推動營收成長。收入的加速和項目燃料節省將推動利潤成長。當我介紹前景時，我將分享更多內容。

And with that, I will turn to our results. Quarter three net revenues were $1.5 billion, up 3%, excluding DENIZEN. The drivers of the revenue growth were Levi's and Beyond Yoga, contributing approximately 5 percentage points of growth, partially offset by approximately 2 percentage points of decline from Signature and Dockers.

接下來，我將談談我們的結果。第三季淨收入為 15 億美元，成長 3%（不包括 DENIZEN）。營收成長的推動者是 Levi's 和 Beyond Yoga，貢獻了約 5 個百分點的成長，部分被 Signature 和 Dockers 約 2 個百分點的下降所抵消。

While Signature declined in the quarter, it was largely a timing issue and we expect it to return to growth in quarter four. Gross profit for the third quarter was $911 million or 60% of net revenues, our record quarter three gross margin. Our gross margin increased 440 basis points relative to last year, driven primarily by lower product costs, the continued shift to DTC, and higher full-price sales.

雖然 Signature 在本季度有所下降，但這很大程度上是一個時間問題，我們預計它將在第四季度恢復成長。第三季毛利為 9.11 億美元，佔淨收入的 60%，創下了第三季毛利率的紀錄。我們的毛利率比去年增長了 440 個基點，這主要是由於產品成本下降、繼續轉向 DTC 以及全價銷售額增加。

These factors offset approximately 60 basis points of FX headwinds and higher air freight as we chase into new products to meet demand. Adjusted SG&A expenses in the quarter increased 5% to $735 million. And as a percentage of net revenues, adjusted SG&A was $48.5 million up 210 basis points from last year.

當我們追逐新產品以滿足需求時，這些因素抵消了約 60 個基點的外匯逆風和較高的空運運費。本季調整後的 SG&A 支出成長 5%，達到 7.35 億美元。調整後的 SG&A 佔淨收入的百分比為 4,850 萬美元，比去年增加了 210 個基點。

The increase in adjusted SG&A dollars was primarily related to higher DTC expenses and advertising versus last year, as well as an increase in distribution expenses related to the short-term process of running a parallel distribution center in the US

調整後的銷售、管理及行政費用增加主要與去年相比增加的 DTC 費用和廣告費用以及與在美國運營平行配送中心的短期流程相關的配送費用增加有關

We have contracted with Maersk in the US and GXO in Europe as third-party logistic providers and the process of transfer and the change from owned to third-party is progressing well. Gross profit dollars increased by 8% and grew at approximately twice the pace of adjusted SG&A dollars leading to EBIT leverage with adjusted EBIT margin increasing 250 basis points to 11.6%.

我們已與美國馬士基和歐洲GXO簽約為第三方物流提供商，自有到第三方的轉讓和變更過程進展順利。毛利成長了 8%，增速約為調整後 SG&A 美元增速的兩倍，導致息稅前利潤槓桿率和調整後息稅前利潤率增長 250 個基點，達到 11.6%。

Adjusted EBIT dollars also grew significantly, up 27% versus last year. Our efficiency efforts as part of Project Fuel played a key role in this outcome, resulting in savings throughout our P&L. Approximately $30 million in savings this quarter helped to offset continued investments in our DTC expansion and incremental A&P to continue to fuel our growth. We are well positioned to deliver our $100 million savings target in '24 with line of sight to even more opportunity beyond that.

調整後息稅前利潤也大幅成長，比去年增加 27%。作為 Project Fuel 的一部分，我們的效率工作在這項成果中發揮了關鍵作用，從而在整個損益表中實現了節省。本季節省的約 3000 萬美元有助於抵消我們對 DTC 擴張和增量 A&P 的持續投資，以繼續推動我們的成長。我們完全有能力在 24 年實現 1 億美元的節省目標，並展望除此之外的更多機會。

Adjusted diluted EPS was $0.33, up 18% to prior year despite a higher tax rate. Our adjusted diluted EPS excludes the $111 million non-cash charge related to the impairment of the Beyond Yoga goodwill and intangible assets in conjunction with our annual testing. The impairment was due to investing in the brand's new strategic plan for growth and expansion.

儘管稅率較高，但調整後稀釋每股收益為 0.33 美元，較上年增長 18%。結合我們的年度測試，我們調整後的稀釋每股收益不包括與 Beyond Yoga 商譽和無形資產減損相關的 1.11 億美元非現金費用。減值是由於投資於該品牌新的成長和擴張策略計劃。

The business continues to perform well, up 19% in quarter three and 14% year to date. Reported inventory dollars were down 7%. The composition of our inventory is healthy, and we expect to end the year with inventory lower than prior year.

該業務持續表現良好，第三季成長 19%，今年迄今成長 14%。報告庫存美元下降 7%。我們的庫存構成健康，我們預計年底庫存將低於去年。

Turning to dividend and share repurchases. In the quarter, we returned $69 million to shareholders, which includes $52 million in dividends and $18 million in share repurchases. Since we restarted share repurchases in Q1, we have returned 37% more capital to shareholders versus prior year. And for quarter four '24, we have declared a dividend of $0.13 per share, in line with quarter three.

轉向股利和股票回購。本季度，我們向股東返還 6,900 萬美元，其中包括 5,200 萬美元的股息和 1,800 萬美元的股票回購。自從我們在第一季重新啟動股票回購以來，我們向股東返還的資本比去年增加了 37%。 2024 年第四季度，我們宣布派發每股 0.13 美元的股息，與第三季一致。

Now let's review the key highlights by segment. The Americas were up 2% and adjusting for the exit of the DENIZEN business. Direct-to-consumer revenues were up 16%, driven by double-digit growth in brick-and-mortar and e-commerce. Gross margin outperformed due to favorable product costs and mix. Higher full prices also contributed to the strong operating margin of 23%, up 530 basis points to prior year.

現在讓我們按細分市場回顧一下主要亮點。美洲上漲 2%，並因 DENIZEN 業務退出而進行調整。在實體店和電子商務兩位數成長的推動下，直接面向消費者的收入成長了 16%。由於有利的產品成本和產品組合，毛利率表現優於大盤。更高的全價也促成了 23% 的強勁營業利潤，比上年增長 530 個基點。

Europe returned to growth this quarter, up 7%, reflecting growth across both channels. We saw an acceleration in DTC growth from quarter two, up 10%, most notably in e-commerce, increasing 30%. Wholesale return to growth this quarter, up 4%. The women's business was up double digits with growth in both channels as fashion fits and newness are resonating with the European consumer. In the quarter, strong gross margin expansion resulted in an operating margin of 20.5%, up 280 basis points to prior year.

歐洲本季恢復成長，成長 7%，反映了兩個通路的成長。我們看到 DTC 從第二季開始加速成長，成長了 10%，尤其是電子商務領域，成長了 30%。本季批發業恢復成長，成長 4%。由於時尚合身和新鮮感引起了歐洲消費者的共鳴，女裝業務在兩個管道中都實現了兩位數成長。本季度，毛利率強勁擴張，營業利潤率達 20.5%，比上年同期成長 280 個基點。

Asia net revenues increased 4% compared to the prior year and were up 22% on a two-year stack. Direct-to-consumer revenues increased 6%, driven by strength in both company-operated stores and e-commerce in addition to wholesale revenues, which were up 1% while we saw significant strength in many markets, including Turkey and Japan, headwinds persisted in our China and Middle East businesses. Asia delivered operating margin of 12%, which was flat to last year.

亞洲淨收入較上年增長 4%，兩年間增長 22%。直接面向消費者的收入增長了6%，這得益於公司自營商店和電子商務的強勁增長以及批發收入的增長1%，儘管我們看到包括土耳其和日本在內的許多市場都表現強勁，但逆風依然存在在我們的中國和中東業務中。亞洲的營業利益率為 12%，與去年持平。

Now let's turn to our outlook. We are confident that the acceleration in sales in Q3 will continue into Q4. This will be driven by accelerated growth of the Levi's brand supported by a new marketing campaign, improvement in global wholesale, and continued momentum in DTC and Europe, along with the benefit from the 53rd week.

現在讓我們來談談我們的展望。我們有信心第三季的銷售加速將持續到第四季。這將受到新行銷活動、全球批發改善、DTC 和歐洲持續成長勢頭以及第 53 週收益的支持下，Levi's 品牌加速成長的推動。

However, our prior full-year expectations are being offset by headwinds in China, Dockers, and Mexico wholesale. As a result of these headwinds, we are expecting mid-single-digit revenue growth for the fourth quarter.

然而，我們先前的全年預期被中國、碼頭工人和墨西哥批發業的不利因素所抵消。由於這些不利因素，我們預計第四季營收將實現中個位數成長。

And for the year, we are adjusting reported revenues from the low end of our 1% to 3% guidance to 1% and constant currency from the high end of our previously guided range to 1.5% to 2%. I'm confident in our plans to address these areas and while we recognize that the benefits from these actions will take time to fully materialize, we are beginning to see improvements as we step into Q4.

今年，我們將報告收入從 1% 至 3% 指導範圍的低端調整至 1%，將固定匯率從先前指導範圍的高端調整至 1.5% 至 2%。我對我們解決這些領域的計劃充滿信心，雖然我們認識到這些行動的好處需要時間才能完全實現，但隨著進入第四季度，我們開始看到改進。

As I referenced earlier, we're also confident in our expectation of progressive margin expansion. We are increasing our full-year gross margin expectation from 180 basis points to 270 basis points driven by the quarter three beat and a higher contribution from DTC in quarter four.

正如我之前提到的，我們對利潤率逐步擴大的預期也充滿信心。受第三季業績成長和第四季 DTC 更高貢獻的推動，我們將全年毛利率預期從 180 個基點上調至 270 個基點。

Full year SG&A is expected to be up 4% compared to prior year with the acceleration in Q4 attributable to the 53rd week and higher advertising expenses. The increase in SG&A will be partially mitigated by Project Fuel savings, which are expected to be around $50 million.

由於第 53 週和廣告費用的增加，第四季度的成長加速，預計全年 SG&A 較去年同期成長 4%。 SG&A 的增加將因專案燃料節省而部分緩解，預計節省約 5,000 萬美元。

Overall, SG&A as a percent of revenue has come down as the year has progressed. We expect gross profit dollar flow-through to be higher than SG&A dollars in quarter four driving Q4 EBIT margin to be in the low teens. We continue to expect full year EBIT margin to be slightly above 10%, leveraging approximately 100 to 130 basis points versus last year.

總體而言，隨著時間的推移，SG&A 佔收入的百分比有所下降。我們預計第四季度的毛利美元流量將高於銷售及行政管理費用美元，從而推動第四季度的息稅前利潤率達到十幾歲以下。我們繼續預計全年息稅前利潤率將略高於 10%，較去年增加約 100 至 130 個基點。

We now expect full-year interest expense to be around $50 million for the year with $13 million anticipated for quarter four. Our Q4 tax rate is projected to be in the mid-teens. We now expect full-year adjusted EPS to be at the midpoint of $1.17 in to $1.27 guidance range. We also remain on track to open 100 net new system doors for the year.

我們現在預計全年利息支出約為 5,000 萬美元，第四季預計為 1,300 萬美元。我們第四季的稅率預計為十幾歲左右。我們現在預計全年調整後每股收益將處於 1.17 美元至 1.27 美元指引範圍的中點。我們還有望在今年淨開放 100 個新系統。

In summary, here are the key takeaways from my discussion today. First, we are seeing meaningful positive momentum of the Levi's brand globally, which will accelerate in Q4 fueled by a new Beyoncé campaign and product innovation.

總而言之，以下是我今天要討論的主要內容。首先，我們看到李維斯品牌在全球範圍內出現了有意義的積極勢頭，在新的碧昂絲行銷活動和產品創新的推動下，這種勢頭將在第四季度加速。

Second, we are narrowing our focus to Levi's and Beyond Yoga, which will drive higher growth and margins. This includes the actions we have taken to evaluate strategic alternatives for the Dockers brand along with our decision to exit DENIZEN and our footwear business earlier this year.

其次，我們將重點縮小到 Levi's 和 Beyond Yoga，這將推動更高的成長和利潤。這包括我們為評估 Dockers 品牌的策略替代方案而採取的行動，以及我們今年稍早退出 DENIZEN 和鞋類業務的決定。

Third, our focus on improving profitability and the structural economics of the business through driving higher gross profit less SG&A positions us well for the long term. and furthers us on our path to achieve 15% operating margins over the longer term.

第三，我們專注於透過提高毛利（減去銷售管理費用）來提高獲利能力和業務的結構經濟性，這使我們在長期內處於有利地位。並推動我們在長期內實現 15% 營業利潤率。

And fourth, we believe we're exiting the year in a much stronger position than at the beginning as evidenced by the sequential progression in revenue and profitability across both channels and strength across key geographies, the US and Europe.

第四，我們相信今年結束時我們的地位將比年初更加強勁，這從兩個渠道的收入和盈利能力的連續進步以及美國和歐洲等關鍵地區的實力來看就證明了這一點。

And with that, let's go ahead and open up the line for Q&A.

接下來，讓我們繼續進行問答。

(Operator Instructions) Bob Drbul, Guggenheim.

（操作員說明）Bob Drbul，古根漢。

Hi. Good afternoon. Two questions for you if I could sneak them in. Aida, forgive me. The first one is for Harmit. Can you talk a bit more just around the drivers of this quarter's revenue miss and your confidence in the Q4 acceleration? And then for Michelle, can you just expand a bit more just on the rationale on the Dockers evaluation and just the timing of it? I guess if you can just spend -- answer those, that would be great. Thanks.

你好。午安.如果我可以偷偷地問你兩個問題。第一個是給哈米特的。您能否多談談本季營收低於預期的驅動因素以及您對第四季加速成長的信心？然後，對於 Michelle，您能否進一步闡述 Docker 評估的基本原理以及評估的時機？我想如果你能花——回答這些問題，那就太好了。謝謝。

Thanks, Bob. Let me take the first, and Michelle can take the Dockers piece. Both were expected questions, so thanks for asking. Just going back and looking at the quarter, as we said, we did come in on the low end of our guidance in terms of revenue, but we did exceed our profitability expectations. What drove the difference between coming in the low end versus coming at the top end, basically, four factors.

謝謝，鮑伯。讓我拿第一個，米歇爾可以拿 Dockers 的部分。這兩個問題都是預料之中的問題，所以感謝您的提問。回顧一下本季度，正如我們所說，我們的收入確實處於我們指導的低端，但我們確實超出了我們的盈利預期。造成低階產品與高階產品之間差異的因素基本上有四個因素。

I'd say one-fourth of the difference or the miss was driven by foreign exchange, largely Mexico peso vis-à-vis the dollar, the remaining three-quarters was driven by what Michelle and I referred to in the script, which is lower performance from Mexico, particularly Mexico wholesale, part driven by the cybersecurity breach, which we are working very closely with the largest customer, so we can get the shipping back to normal standards.

我想說，四分之一的差異或失誤是由外匯造成的，主要是墨西哥比索兌美元，剩下的四分之三是由米歇爾和我在劇本中提到的造成的，即墨西哥的表現較低，尤其是墨西哥批發，部分原因是網路安全漏洞，我們正在與最大的客戶密切合作，以便我們可以使運輸恢復到正常標準。

Part China, which is a combination of the macro headwind. China, as you all know, is a small piece of our business and -- but it was impacted. And the other piece was Dockers underperforming. So those are the factors that drove the miss.

部分中國，這是宏觀逆風的結合。眾所周知，中國祇是我們業務的一小部分，但它受到了影響。另一件事情是 Dockers 表現不佳。這些都是導致失誤的因素。

To your question about why we feel will continue to accelerate. So quarter three has accelerated from H1, both in revenue and profitability. We continue to believe quarter four continues the acceleration. We think top line grows at about mid-single digit and EBIT margin in the low teens. But the factors that drive give us confidence about the -- about quarter four.

對於你為什麼我們認為會繼續加速的問題。因此，第三季的營收和獲利能力均較上半年加速。我們仍然相信第四季將繼續加速。我們認為營收成長約為中個位數，息稅前利潤率成長在十幾歲以下。但推動因素讓我們對第四季充滿信心。

First, we are beginning the quarter for much stronger than we exited quarter three, which is a good sign. Second, the -- we're confident about the continued strength in the US and Europe. Europe closed quarter three, slightly stronger than we expected, which was good news.

首先，我們在本季開始時的表現比第三季結束時要強得多，這是一個好兆頭。其次，我們對美國和歐洲的持續強勢充滿信心。歐洲第三季收盤略強於我們的預期，這是個好消息。

The second is we do believe the global wholesale, which has sequentially improved. It was still down in quarter three, but sequentially better than the first half, will continue to improve and our momentum in our direct-to-consumer business, which is not only stronger, but also a lot more profitable continues into quarter four.

第二個是我們確實相信全球批發業已經持續改善。第三季仍然下降，但比上半年更好，並將繼續改善，我們在直接面向消費者的業務方面的勢頭不僅更強，而且利潤也更高，並將持續到第四季度。

We are also seeing the new product assortments are being -- are being accepted by the consumer. In fact, we're chasing into some of our products as we get ready for the holiday season and the partnership with Beyoncé, I think, will fuel the momentum. And then there is the 53rd week, which net of DENIZEN is expected to add 1.5 to 2 percentage points.

我們也看到新的產品種類正在被消費者接受。事實上，當我們為假期做好準備時，我們正在追逐我們的一些產品，我認為與碧昂絲的合作將推動這一勢頭。然後是第 53 週，扣除 DENIZEN 後預計將增加 1.5 至 2 個百分點。

I think the important fact for all of you to think through is how are we exiting the year. And our belief is we are exiting the year in a much stronger position both in terms of revenue growth and profitably than we began the year. Structurally, the US Levi's wholesale business is expected to end the year less than 20%, yeah -- let me repeat that less than 20% of our total business and is down from 30% in 2015.

我認為你們所有人需要思考的重要事實是我們如何度過這一年。我們相信，今年結束時，我們在收入成長和利潤方面都比年初時處於更有利的地位。從結構上看，美國李維斯的批發業務預計到今年年底將低於 20%，是的——讓我再說一遍，不到我們總業務的 20%，比 2015 年的 30% 有所下降。

And that combined with the strength of DTC, both on the top line and the bottom line I think structurally allows us to enter '25 in a much stronger position.

結合 DTC 的實力，我認為無論是在營收或利潤上，從結構上來說，我們都能以更強大的地位進入 25 年。

I hope that answers your question. I'll now defer to Michelle on Dockers.

我希望這能回答你的問題。我現在將在 Dockers 上聽從 Michelle 的意見。

Yeah. Great. Bob, thanks for the question. In terms of our decision to explore strategic options for Dockers, this is all about focus. And our intention going forward is to really amplify our focus on the Levi's brand and accelerate Beyond Yoga.

是的。偉大的。鮑勃，謝謝你的提問。就我們探索 Docker 策略選擇的決定而言，這一切都與重點有關。我們未來的目標是真正加強對李維斯品牌的關注，並加速超越瑜珈。

In terms of Dockers, this business has underperformed for some time. And so as we announced, we're going to look at alternatives with an intention to sell the business. We have -- you've seen us throughout the year, take decisive action on a number of fronts. We exited our European footwear business, exited the DENIZEN brand, we've evolved their distribution and logistics strategy. So this is the next and frankly, the biggest decision we've made to really position the business for the long term.

就 Docker 而言，這項業務已經有一段時間表現不佳了。因此，正如我們所宣布的那樣，我們將尋找替代方案，以期出售該業務。我們這一年都看到了，我們在許多方面採取了果斷行動。我們退出了歐洲鞋類業務，退出了 DENIZEN 品牌，我們已經制定了他們的分銷和物流策略。因此，坦白說，這是我們為真正對業務進行長期定位所做的最大決定。

We believe it's going to be good for the top line as we accelerate, both Levi's and Beyond Yoga. It will also be good from a margin standpoint in terms of our overall margin structure. And I would say, given that even this quarter, the Levi's brand was up 5%, Dockers down 13%. We also believe going forward is going to create more consistent growth and minimize volatility.

我們相信，隨著 Levi's 和 Beyond Yoga 的加速發展，這將對營收產生好處。從利潤率的角度來看，就我們的整體利潤率結構而言，這也將是好的。我想說的是，即使在本季度，Levi's 品牌也上漲了 5%，而 Dockers 則下跌了 13%。我們也相信，未來將創造更穩定的成長並最大限度地減少波動。

We have started the process. We've engaged Bank of America. And to your question on timing, you can just look forward to getting more updates as we have them.

我們已經開始了這個過程。我們已經與美國銀行合作。至於你關於時間的問題，你可以期待我們收到更多更新。

Okay. Thank you very much.

好的。非常感謝。

Thanks, Bob.

謝謝，鮑伯。

Matthew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Thanks. So Michelle, could you elaborate on the 5% global growth for the Levi's brand? Maybe how that compares to the overall denim category and market share trends that you're seeing by region? And then Harmit, multiyear, any change to the 30 to 40 basis points of annual gross margin expansion as an algorithm?

謝謝。米歇爾，您能否詳細說明李維斯品牌 5% 的全球成長？也許這與您所看到的按地區劃分的整體牛仔布類別和市場份額趨勢相比如何？然後哈米特，多年來，每年毛利率擴張 30 到 40 個基點的演算法有什麼變化嗎？

Thanks, Matt. I'll kick it off in terms of the 5% growth and what that means in the context of the consumer and category. So in terms of the 5% growth for Levi's, clearly, that's being driven by the strength of direct-to-consumer, which was up 12%, globally, 12% here in the US. And we're seeing that as it relates to direct-to-consumer, we're seeing that in our stores.

謝謝，馬特。我將從 5% 的成長以及這對消費者和類別的意義開始。因此，就李維斯 (Levi's) 5% 的成長而言，顯然這是由直接面向消費者的實力推動的，該業務在全球範圍內增長了 12%，在美國增長了 12%。我們看到，由於它與直接面向消費者有關，我們在我們的商店中也看到了這一點。

Now, I think, 10 quarters of consecutive growth. New store openings are on track, 100 net new stores for the year. And then our e-commerce business is also accelerating up almost 20%. So that's really fueling the growth.

現在，我認為已經連續 10 個季度成長。新店開幕進展順利，今年淨新開 100 家店。然後我們的電子商務業務也在加速成長近20%。所以這確實推動了成長。

In terms of wholesale, which continues to be an important part of our business, while still a headwind and still negative, it was down 3% globally, we are seeing that sequentially improve. And we expect collectively the Levi's brand and the business to sequentially improve into the fourth quarter. Harmit spoke to that just now, we've got a lot of levers that are going to drive that growth.

就批發而言，它仍然是我們業務的重要組成部分，儘管仍然是逆風且仍然是負面的，但全球範圍內下降了 3%，我們看到情況正在逐步改善。我們預計李維斯的品牌和業務將在第四季度繼續改善。哈米特剛才談到，我們有很多槓桿可以推動這種成長。

I think when you also look inside the makeup of the business, we continue to be really pleased with the acceleration of our women's business. Our women's business, both outperformed in DTC and in wholesale, and we expect that to continue. We're seeing growth in the bottoms business for women's. We're seeing growth -- and frankly, men's overall for Levi's was also positive. So strength in bottoms and also strength in the tops business.

我認為，當您深入了解該業務的組成時，我們仍然對女性業務的加速發展感到非常滿意。我們的女裝業務在 DTC 和批發方面的表現均優於其他業務，我們預計這種情況將持續下去。我們看到女裝下裝業務的成長。我們看到了成長——坦白說，李維斯的男裝整體表現也是積極的。因此，下裝業務的實力和上衣業務的實力也是如此。

I mean tops was up 8% for the quarter across both channels, up even higher in DTC. So when we talk about the pivot to really become a head-to-toe lifestyle apparel company, we're seeing those proof points. which also, over time, expands our addressable market.

我的意思是，本季兩個通路的最高收入都上漲了 8%，DTC 的漲幅甚至更高。因此，當我們談論真正成為一家從頭到腳的生活方式服裝公司的轉型時，我們看到了這些證據。隨著時間的推移，這也擴大了我們的目標市場。

So those are the highlights around the strength of the Levi's brand and business. And as Harmit just said, and I'll echo, we expect this to continue in the fourth quarter, and the quarter has started off strong in September. So we feel good about that, but we don't want to get ahead of ourselves and the guide as it is.

這些都是李維斯品牌和業務實力的亮點。正如哈米特剛才所說，我也同意，我們預計這種情況將在第四季度繼續下去，並且該季度在 9 月開始表現強勁。所以我們對此感覺很好，但我們不想超越自己和指南本身。

I'd say from a consumer standpoint, generally, we're feeling good about the consumer, but we also recognize that we continue to operate in an uncertain environment. We're optimistic on the category long term.

我想說，從消費者的角度來看，總的來說，我們對消費者感覺良好，但我們也意​​識到我們繼續在不確定的環境中運作。我們對該類別的長期前景持樂觀態度。

You asked about the geographies, the momentum in the US continues another quarter of positive growth. Europe inflected to growth up 7%. And of course, Asia as a whole was up 4%. And in terms of the US, that consumer is proving to be resilient. And you see that in our DTC numbers, up 12%, as I was just talking about.

你問到了地域問題，美國的勢頭延續了另一個季度的正成長。歐洲成長7%。當然，亞洲整體上漲了 4%。就美國而言，事實證明消費者俱有彈性。正如我剛才所說，我們的 DTC 數字上升了 12%。

As it relates to market share, again, I'd say we're pleased. Women's has been a focus just sharing the numbers overall and women's continues to gain market share and is now solidly in the number one position, which hasn't been the case historically.

因為它與市場份額有關，所以我想說我們很高興。女裝一直是人們關注的焦點，只是分享總體數據，女裝繼續獲得市場份額，目前穩居第一的位置，這在歷史上是從未有過的。

We've shared -- over the last year, we've continued to gain market share. And now like I said, we are very solidly in that number one position, which complements the being the number one market share leader, and we are 2x versus the next closest competitor. So we feel very good about what's happening in the business and how we're driving share.

我們分享—在過去的一年裡，我們不斷獲得市場份額。現在就像我說的，我們非常穩固地處於第一的位置，這與市場份額第一的領先者相得益彰，而且我們是第二位最接近的競爭對手的兩倍。因此，我們對業務中正在發生的事情以及我們如何推動份額感到非常滿意。

On your second question, Matt, going back to the growth algorithm, let me start by just reinforcing something that you've heard me now say for a couple of quarters. We've got this laser focus on growing gross profit dollars faster than SG&A.

關於你的第二個問題，馬特，回到成長演算法，讓我先強調你已經聽我講了幾季的事情。我們專注於毛利的成長速度快於銷售、管理費用的成長。

And what it really does is increases the flow through for every incremental dollar of revenue that we add to our business. We have seen the progress across the board. And I think that is the one metric that will really help us get to the 15% operating margin that we are talking about.

它真正的作用是增加我們為業務增加的每一美元收入的流量。我們看到了全面的進展。我認為這是真正能幫助我們實現我們所謂的 15% 營業利潤率的指標。

Your specific question about gross margin. I think structurally, what we have said, which is a 30 to 40 basis points of gross margin that we'll add every year, I think that doesn't change. And I would say that's far from the course. Where we really focused to try and accelerate that is on a couple of things. As we drive a higher direct-to-consumer business, that could be a little better.

您關於毛利率的具體問題。我認為從結構上講，我們每年都會增加 30 到 40 個基點的毛利率，我認為這不會改變。我想說這離課程還很遠。我們真正專注於嘗試和加速這一進程的地方有幾件事。隨著我們推動直接面向消費者的業務的發展，情況可能會好一點。

The other thing is we are focused on driving higher full price sales, especially in our direct-to-consumer business. And that's going to really be driven by the innovation that's happening on our product pipeline. That's hitting home. We're chasing into product, and we believe that continues. So that makes a big difference.

另一件事是我們專注於推動更高的全價銷售，特別是在我們的直接面向消費者的業務中。這將真正由我們產品線中發生的創新所驅動。這就是正中要害。我們正在追求產品，我們相信這種情況會持續下去。所以這有很大的不同。

And then as we simplify our go-to-market calendar, we're really looking at how do we get more agile in how we actually source product, and that should have some benefit in cost of goods sales over time. We'll talk more about this as we guide '25 and beyond. But I'd say you take the 30 to 40 basis points right now and then more to come, stay tuned for further acceleration in the next couple of quarters.

然後，當我們簡化上市日曆時，我們實際上正在考慮如何在實際採購產品方面變得更加敏捷，並且隨著時間的推移，這應該會對商品銷售成本產生一些好處。我們將在 25 年及以後的指南中詳細討論這一點。但我想說的是，你現在會採取 30 到 40 個基點，然後會採取更多措施，請繼續關注未來幾季的進一步加速。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Hi. Thanks, Michelle and Harmit. DTC and women's were impressive. What's happening with men? And also as you think about your longer-term revenue growth algorithm of plus 6% to what are the building blocks to getting there more sustainably? It sounds like there could be an innovation opportunity in men's and then wholesale is obviously not growing as fast as DTC.

你好。謝謝米歇爾和哈米特。 DTC 和女子比賽令人印象深刻。男人怎麼了？另外，當您考慮 6% 以上的長期收入成長演算法時，更永續實現這一目標的基石是什麼？聽起來男裝領域可能有創新機會，但批發市場的成長速度顯然不如 DTC。

The other opportunity/question is like faster inventory turns on your direct-to-consumer and ways to enhance that over time, perhaps using the cost method of accounting on East Coast port is on people's minds as well. Thanks.

另一個機會/問題是，您的直接面向消費者的庫存週轉速度更快，以及隨著時間的推移增強庫存的方法，也許人們也在考慮在東海岸港口使用會計成本法。謝謝。

Yeah. Great. Hi, Oliver. Thanks for the question. So yeah, I mean, happy about our DTC business. Clearly, women is accelerating. But to your point, men's is a critical part of our business and very important, we have a lot of focus. I mean while we've continued to talk about our win with women's strategy is that we are underdeveloped in that business. right?

是的。偉大的。嗨，奧利佛。謝謝你的提問。所以，是的，我的意思是，對我們的 DTC 業務感到高興。顯然，女性的發展速度正在加快。但就您而言，男裝是我們業務的關鍵部分，非常重要，我們有很多重點。我的意思是，雖然我們繼續談論我們在女性策略方面的勝利，但我們在該業務上還不夠發達。正確的？

And that business over time should be at least half, and we're about 35% or so today. So we have a lot of upside, but with men, we must retain our top position and continue to grow there. So for the quarter, just to add a little bit more color on the men's business, men's did accelerate from the first half. Men's was positive for Levi's up 2%, up high single digits in DTC.

隨著時間的推移，這個業務量應該至少達到一半，而我們今天大約是 35% 左右。所以我們有很多優勢，但對於男性來說，我們必須保持我們的領先地位並繼續在那裡成長。因此，就本季而言，只是為了為男裝業務增添一點色彩，男裝確實比上半年有所加速。 Levi's 男裝上漲 2%，DTC 上漲高個位數。

But we see more opportunity. We're not satisfied there. We do want to accelerate growth. And so we are focused both on energizing the core of our business, 501 continues to perform, what more can we do there.

但我們看到了更多的機會。我們對此並不滿意。我們確實希望加速成長。因此，我們專注於為我們的核心業務注入活力，501 繼續表現出色，我們還能在那裡做些什麼。

And importantly, on the, call it, evolution of fits for men. Baggy and loose is now really taking hold, and we've been chasing those fits for men. And we are going to be in a better in-stock position in the fourth quarter given the moves that our merchandising and planning team did versus Q3. I think there were some mid-opportunity on the baggy and loose say for men in the third quarter, but we've got that covered for the fourth quarter.

重要的是，可以稱之為男士服裝的演變。寬鬆的款式現在確實流行起來，我們一直在追求適合男士的款式。鑑於我們的銷售和規劃團隊與第三季相比採取的舉措，我們第四季的庫存狀況將會更好。我認為在第三季度，對於男性來說，有一些寬鬆寬鬆的機會，但我們在第四季度已經解決了這個問題。

And then over time for men, it goes back to what we're talking about earlier on this head-to-toe denim lifestyle both in terms of when you think about bottoms, yes, it's denim, but also non-denim. And non-denim bottoms for us now make up about 40% of our business.

隨著時間的推移，對於男士來說，它又回到了我們之前討論的從頭到腳的牛仔生活方式，無論是當你想到下裝時，是的，它是牛仔布，但也是非牛仔布。目前，我們的非牛仔褲業務約占我們業務的 40%。

We're seeing traction in products like the X Ex Chino, which continues to perform. We just introduced the share as you're aware, the tech pant, which is more of a performance-oriented but still very Levi's and then innovation in fabrics, Performance Cool, a warm, comfortable, stretchy and again, on the loose trend, the 555 introducing as we speak.

我們看到 X Ex Chino 等產品的吸引力，並且繼續表現出色。我們剛剛介紹了大家知道的份額，高科技褲，它更多的是注重性能，但仍然很Levi's，然後在面料上進行創新，Performance Cool，保暖，舒適，有彈力，再次，在寬鬆的趨勢上， 555 就在我們說話的時候介紹一下。

The top opportunity continues like it is for women, continues to be an opportunity for men, and we're also seeing traction there. I mean, combined men's and women's for top -- we were up 8% in total globally, all channels and then even greater for DTC.

對於女性來說，頂級機會仍然存在，對男性來說仍然是一個機會，我們也看到了這方面的吸引力。我的意思是，將男士和女士的頂部綜合起來——我們在全球範圍內所有管道的總計增長了 8%，而 DTC 的增長幅度更大。

And to your point, this is a focus for us, both for our direct-to-consumer, but also for wholesale. It's DTC first as it relates to the overall strategy, that's where a lot of our future growth is going to come. But also ensuring that our wholesale channel remains healthy.

就您而言，這是我們的重點，無論是直接面向消費者還是批發。首先是 DTC，因為它關係到整體策略，這也是我們未來大部分成長的來源。但也要確保我們的批發管道保持健康。

And we are seeing sequential improvement there. And as you know, the men's business particularly penetrates in that wholesale channel. So again, we talked about as we head into Q4, we're expecting acceleration overall, and that would carry for both the men's and women's business.

我們看到那裡的連續改善。如您所知，男裝業務尤其滲透到批發管道。因此，我們再次談到，在進入第四季度時，我們預計整體會加速，這將適用於男士和女士業務。

To your other two questions, Oliver, inventory, I'll do a speed answer on both. Inventory turns about 2%. Our long-term goal is 3%. We're committed to it and lock a substantial amount of working capital and cash. The tailwinds that we are working on or the areas we're working on, a faster go-to-market calendar, we're reducing our SKUs and Dockers exit should actually help because Docker's inventory turn is lower.

對於你的另外兩個問題，奧利佛，庫存，我將快速回答這兩個問題。庫存週轉率約為2%。我們的長期目標是3%。我們致力於此並鎖定大量營運資金和現金。我們正在努力的順風車或我們正在努力的領域、更快的上市日曆、我們正在減少 SKU 和 Docker 的退出實際上應該會有所幫助，因為 Docker 的庫存週轉率較低。

I think the one thing that we just have to -- that we need and I think everybody needs all retailers need is a little bit more consistency in some of the supply chain issues we've had. And I'll talk about the latest one that you referred to, which is the port issue.

我認為我們必須要做的一件事——我們需要的，我認為每個人都需要所有零售商需要的，是在我們遇到的一些供應鏈問題上更加一致。我將談談您提到的最新問題，即連接埠問題。

But just getting more consistency, clarity, I think will really make a big difference because all of us have a little bit more safety stock right now. And in our case, we are chasing the new stuff. So we will probably buy more of the new stuff just to make sure that we don't lose sales. But I think those are the things we're working on.

但我認為，只要獲得更多的一致性、清晰度，就會產生很大的影響，因為我們現在都擁有更多的安全庫存。就我們而言，我們正在追逐新事物。因此，我們可能會購買更多新產品，以確保我們不會損失銷售。但我認為這些就是我們正在努力的事情。

On the port strike, it's a developing situation. We are doing everything we can to prepare ourselves as much as we can. We've been working on this for the last couple of months.

關於港口罷工，情況正在發展中。我們正在盡一切努力，盡可能地做好準備。過去幾個月我們一直在努力解決這個問題。

But like everyone else, the impact on us will depend on how long it goes on for. Knowing that this was on the horizon. We've been proactively working on it through as early as March, and we've been monitoring the situation closely.

但和其他人一樣，對我們的影響將取決於它持續多久。知道這即將到來。早在三月，我們就一直在積極開展工作，並一直密切關注事態發展。

We, for example, proactively shipped routes to the West Coast. We have prioritized certain POs and switch to airfreight just to ensure that we have the product for the holiday season. et cetera, et cetera. And so our hope like everyone else is that this gets resolved quickly.

例如，我們主動將航線運送到西海岸。我們優先考慮了某些採購訂單並改用空運，以確保我們有假期季節的產品。等等，等等。因此，我們和其他人一樣希望這個問題能盡快解決。

Thanks, Michelle. Thanks, Harmit. Best regards, Happy holidays.

謝謝，米歇爾。謝謝，哈米特。最誠摯的問候，節日快樂。

Thank you. You, as well.

謝謝。你也一樣。

Thank you.

謝謝。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Good afternoon, everyone. Maybe Harmit or Michelle, just can you elaborate a little bit more on the US wholesale, the weakness that was in the quarter? Was that in line with your expectation? What is your expectation based on what you're seeing so far for the fourth quarter? And just trying to get maybe just a state of the union on that channel, how are you thinking about it, macro and then your own execution would be great. Thanks.

大家下午好。也許哈米特或米歇爾，您能詳細說明一下美國批發市場本季的疲軟情況嗎？這符合你的預期嗎？根據迄今為止您所看到的第四季度的情況，您的預期是什麼？只是想在該頻道上獲得一個聯盟的狀態，你是如何看待它的，宏觀的，然後你自己的執行力會很棒。謝謝。

Sure, I'm happy to take that. I would say for the Levi's brand for US wholesale that largely came in line with our expectations. We've talked about Dockers not meeting our expectations, and that was true very much in the wholesale channel. As I spoke to earlier, global wholesale was down 3% and up from the first half.

當然，我很樂意接受。我想說的是，美國批發市場上的李維斯品牌很大程度上符合我們的預期。我們已經討論過 Docker 沒有達到我們的期望，在批發管道中確實如此。正如我之前所說，全球批發量較上半年下降 3%，但有所上升。

And then in the US, also sequentially improved down 2%. I will add that a bright spot, not only for the total company, but also in US wholesale and global wholesale, frankly, was the women's business. The women's was up 4% and globally and up 2% in US wholesale. And that's been driven by driving the fashion fits, the baggy trend and also this head-to-toe denim dressing, including tops. We are getting traction and tops with our wholesale business.

然後在美國，也較上季下降了2%。我要補充一點，坦白說，不僅對整個公司，而且對美國批發和全球批發來說，一個亮點就是女裝業務。全球女裝批發成長 4%，美國批發成長 2%。這是由時尚合身、寬鬆趨勢以及從頭到腳的牛仔裝（包括上衣）推動的。我們的批發業務正在獲得牽引力並達到頂峰。

I would add that while this continues to be a headwind to sales, again, DTC up 12%, wholesale down 3%, US wholesale down 2%, we are seeing, like I said, a sequential improvement. We expect that sequential improvement to carry into Q4 and beyond.

我想補充一點，雖然這仍然是銷售的阻力，但 DTC 增長了 12%，批發下降了 3%，美國批發下降了 2%，但正如我所說，我們看到了環比的改善。我們預計這種連續改善將持續到第四季及以後。

I'd also add that the profitability of the channel is improving. We saw 500 basis points of gross margin leverage in this quarter. And part of that, candidly, has been, frankly, focused on more full price selling also impacted the top line a little bit, all was accounted for in US wholesale, but having less off-price sales as an example, as we focus on full-price selling.

我還想補充一點，該通路的獲利能力正在改善。本季毛利率槓桿為 500 個基點。坦白說，其中一部分是專注於更多的全價銷售，這也對營收產生了一點影響，所有這些都在美國批發中占到，但作為例子，折扣銷售較少，因為我們專注於全價銷售。

So I'll just say, important channel -- our key customers are really important to us and we're important to them. And I think the big unlock for us going forward is really making sure that we get great adoption of the new products we're offering.

所以我只想說，重要的管道—我們的關鍵客戶對我們來說非常重要，我們對他們也很重要。我認為我們未來的重大突破實際上是確保我們提供的新產品廣泛採用。

Sometimes, we have a broader, bigger assortment of like fashion fits in DTC, and we see that flow through. So how can we get wholesale to adopt those more quickly. and we are beginning to see the whole head-to-toe lifestyle, including tops, and some of our key customers are really adopting that. So I think these things carry in to build our momentum into the fourth quarter and beyond.

有時，我們在 DTC 中擁有更廣泛、更多的類似時尚款式，並且我們看到這種情況的流動。那我們要如何更快地大規模採用這些技術呢？我們開始看到從頭到腳的整個生活方式，包括上衣，我們的一些主要客戶正在真正採用這種生活方式。因此，我認為這些事情將為我們在第四季及以後的發展勢頭奠定基礎。

Great. Thanks.

偉大的。謝謝。

Great. Thanks, Ike.

偉大的。謝謝，艾克。

Thanks, Ike.

謝謝，艾克。

Brooke Roach, Goldman Sachs.

布魯克·羅奇，高盛。

Good afternoon and thank you for taking our question. Harmit, I was hoping you could quantify the drivers of gross margin outperformance in the quarter versus your prior outlook, which I believe was for 200 basis points of expansion? And then looking ahead, how should we be thinking about the puts and takes on gross margin?

下午好，感謝您提出我們的問題。 Harmit，我希望您能夠量化本季毛利率表現優於您之前的預期的驅動因素，我認為您的預期是擴張 200 個基點？然後展望未來，我們該如何考慮看跌期權和看跌期權對毛利率的影響？

What level of cost recapture is still on the horizon? How are you thinking about pricing and promotions? And what are the offsets that you're currently embedding in your outlook for freight and supply chain disruption? Thank you.

成本回收仍處於何種水準？您如何考慮定價和促銷？您目前對貨運和供應鏈中斷的展望中包含哪些抵銷措施？謝謝。

Sure, Brooke. So the big buckets in terms of what drove this. So gross margin higher than we expected, clearly by 200 basis points-plus. But relative to a year ago, I think if you break up the 440 I would say 270 basis points was product cost that helped. 50 basis points were higher full price sales.

當然，布魯克。因此，就推動這一切的因素而言，這是一個巨大的桶子。因此，毛利率高於我們的預期，明顯高出 200 個基點以上。但相對於一年前，我認為如果你分解 440 個基點，我會說 270 個基點是產品成本有幫助。全價銷售上漲 50 個基點。

And we put this extra effort especially, as I mentioned earlier, the products that we are now bringing to market our hitting home and we're chasing into it. And then 190 basis points-odd from brand and channel mix. We had a few offsets of 60 basis points from FX and airfreight. And airfreight is largely because we're chasing into product.

正如我之前提到的，我們特別付出了額外的努力，我們現在將產品推向市場，我們正在努力追求它。然後品牌和通路組合帶來了 190 個基點。我們對外匯和空運進行了 60 個基點的一些抵消。空運很大程度上是因為我們正在追逐產品。

So that is one walk, which is from a year ago relative to what we thought is really coming -- an extra 1 point from channel mix, which is DTC is strong in Europe had a strong DTC quarter, about 0.5 point from higher full price sales. It's always difficult to predict the teams on the ground and our e-commerce folks are doing a great job improving that.

所以這是一次步行，相對於我們認為真正即將到來的一年前的情況——渠道組合額外增加了1 個點，即DTC 在歐洲表現強勁，DTC 季度表現強勁，比更高的全價增加了約0.5 個點銷售量。預測現場團隊總是很困難，我們的電子商務人員在改善這一點方面做得非常出色。

We are still -- we have opportunity -- and so there's more to come and a point due to lower COGS, sometimes difficult to predict. So that's how we are thinking of gross margin. That's what really drove gross margins for the quarter.

我們仍然——我們有機會——所以還會有更多的事情發生，而且由於銷貨成本較低，有時很難預測。這就是我們對毛利率的看法。這才是真正推動本季毛利率的因素。

For quarter four, I think much of the same. And that's why as we think about the year, we'll probably end the year 200 basis points-plus, no, actually 300 -- close to 250, 300 basis points better than a year ago. And that's really driven by the same factors, FX headwind, and product cost tailwind, mix tailwind, and higher full-price sales.

對於第四季度，我的看法大致相同。這就是為什麼當我們考慮今年時，我們可能會在今年結束時比一年前提高 200 個基點以上，不，實際上是 300 個基點，接近 250、300 個基點。這實際上是由相同的因素推動的，即外匯逆風、產品成本順風、混合順風和更高的全價銷售。

Great. Thanks so much.

偉大的。非常感謝。

You're welcome.

不客氣。

Jay Sole, UBS.

傑伊·索爾，瑞銀集團。

Great. Thank you. Michelle, can you just take a step back for a second, you think about everything that the company is doing to try to transform into a global DTC business versus what was traditionally a wholesale business. How far along is the company in that journey? I mean, like how much more maybe skills to the company have to acquire people and talent does the company have to add. Where would you say the company is in that journey?

偉大的。謝謝。米歇爾，您能否退後一步，想想公司為轉型為全球 DTC 業務而不是傳統的批發業務所做的一切。公司在這段旅程中走了多遠？我的意思是，公司可能還需要增加多少技能來吸引人才和人才。您認為公司在這段旅程中處於什麼位置？

Yeah. Thanks, Jay, for the question. It's a great question. I mean I would say -- I'd say, first of all, I'd say we're still in the early stages. But that said, we're making rapid progress.

是的。謝謝傑伊的提問。這是一個很好的問題。我的意思是，我會說，首先，我會說我們仍處於早期階段。但話雖如此，我們正在取得快速進展。

And I think this year, in particular, where we have -- we have an initiative called Project Fuel, which is our global productivity initiative. But it's not just about the bottom line. It's also about the top line. how we accelerate growth and do that more profitably to reach our ambitions about turning this company into a $10 billion more profitable company.

我認為，特別是今年，我們有一項名為「燃料計畫」的計劃，這是我們的全球生產力計劃。但這不僅僅關乎底線。這也與頂線有關。我們如何加速成長並提高獲利能力，以實現將公司轉變為盈利能力達 100 億美元的公司的雄心壯志。

We brought in a number of new leaders who have DTC skills. I mean, Jason Gowans, who came out of Nordstrom, he has deep, deep expertise in e-commerce. And candidly, you're seeing that play out with the acceleration of our e-com business and digital overall.

我們引進了一些具有 DTC 技能的新領導者。我的意思是，Jason Gowans，來自 Nordstrom，他在電子商務方面擁有深厚的專業知識。坦白說，您會看到隨著我們電子商務業務和數位整體的加速發展，這一點正在發揮作用。

Gianluca Flore just joined us, who comes from over 20 years of these retail experience. And we are very much in the work of, call it, rewiring the company, which is -- Harmit alluded to it, but our go-to-market, we now do see how we are going to take several months out of our process to get down to a 12-month calendar. And in some cases, our speed lanes will be a lot faster. So that is one example.

Gianluca Flore 剛加入我們，他擁有 20 多年的零售經驗。我們正在大力開展公司重組工作，哈米特提到了這一點，但我們現在確實看到瞭如何從我們的流程中節省幾個月的時間細化到 12 個月的日曆。在某些情況下，我們的高速車道會快得多。這就是一個例子。

The other piece I would point to is it's no accident that we're seeing DTC overall accelerate and the profitability increase. And we've taken actions through this project fuel to drive productivity, and we're seeing that pay out.

我要指出的另一件事是，我們看到 DTC 整體加速發展且獲利能力提高，這絕非偶然。我們已經透過這個項目燃料採取行動來提高生產力，並且我們看到了回報。

We have a 100-plus stores in pilot where we're addressing selling skills, driving UPT, all of our metrics, as I remarked earlier, are actually showing positive growth, things like conversion and units per transaction, which is all on the back of like being an expert in retail, coupled with driving more profitability out of the boxes, and we're seeing that through better labor deployment.

我們有100 多家試點商店，我們正在解決銷售技巧、推動UPT，正如我之前所說，我們的所有指標實際上都顯示出積極的增長，例如轉換率和每筆交易的單位數，這些都在背面就像成為零售專家一樣，再加上開箱即用的更高盈利能力，我們透過更好的勞動力部署看到了這一點。

So there's a lot to talk about here. But I would say this will be a multiyear journey. So it's hard to put a percent, but I'd say we're making great progress. And I think that progress has accelerated in the last 12 months.

所以這裡有很多東西要談。但我想說這將是一個多年的旅程。所以很難給出一個百分比，但我想說我們正在取得巨大進展。我認為過去 12 個月裡進展速度加快了。

Got it. Thank you so much.

知道了。太感謝了。

All right. Thanks for the question.

好的。謝謝你的提問。

Laurent Vasilescu, BNP Paribas.

洛朗·瓦西萊斯庫，法國巴黎銀行。

Good afternoon. Thank you very much for taking my question. Michelle, I think you mentioned European wholesale was up 4%, if I recall. If that's the case, can you maybe talk about what you're seeing for -- potentially for the fourth quarter? And I recognize you're not going to talk about fiscal year '25, but are there indications that would potentially continue into spring of next year?

午安.非常感謝您回答我的問題。米歇爾，如果我沒記錯的話，我想你提到歐洲批發成長了 4%。如果是這樣的話，您能否談談您對第四季的預期？我知道您不會談論 25 財年，但有跡象表明這種情況可能會持續到明年春季嗎？

And then, I think, Harmit, you talked about some timing shifts, whether it was Mexico I don't know if there's a -- if you can quantify how much revenue fell in from 3Q into 4Q as we think about the top line for 3Q?

然後，我想，哈米特，你談到了一些時間上的轉變，無論是墨西哥，我不知道是否有——當我們考慮營收時，你是否可以量化從第三季度到第四季度的收入下降了多少3Q？

Yeah. So great. Thanks for the question. In terms of Europe, yes, we were very pleased to see Europe in flat to growth. overall strength in both channels. And as you pointed out, 4% growth in wholesale, 10% in DTC.

是的。太棒了。謝謝你的提問。就歐洲而言，是的，我們很高興看到歐洲持平成長。兩個管道的綜合實力。正如您所指出的，批發增長 4%，DTC 增長 10%。

That's been a lot around the new product innovation we're seeing across both genders were especially seeing acceleration with women's. A lot of our key customers, wholesale in Europe have been quick to adopt this head to toe denim lifestyle, more tops, more skirts, more dresses and they're working.

我們看到，無論男女，新產品的創新都有很多，尤其是女性產品的創新加速。我們在歐洲批發的許多主要客戶很快就採用了這種從頭到腳的牛仔生活方式，更多的上衣、更多的裙子、更多的連身裙，他們正在努力。

So we're anticipating that Europe continues to as a total market, continue to grow exactly how that plays out. Stay tuned. Everything we know is baked into our guidance. And surely, as we look to the next year and beyond, we think this is a start of a really positive trend for Europe. We have a great leadership team there.

因此，我們預計歐洲作為一個整體市場將繼續成長。敬請關注。我們所知道的一切都已納入我們的指導中。當然，當我們展望明年及以後時，我們認為這是歐洲真正積極趨勢的開始。我們在那裡有一個優秀的領導團隊。

Our prebook since you asked about wholesale, our prebook does continue to be positive. That was one of the factors that contributed to Q3. So all in all, we feel like we're very well positioned in that market.

自從您詢問批發以來，我們的預售書確實仍然是正面的。這是促成第三季的因素之一。總而言之，我們覺得我們在這個市場中處於非常有利的位置。

Yeah. And Laurent to your question, while Mexico underperformed because of the -- one of the reasons was the cybersecurity and are constrained into ship. The reason I won't quantify it. It is a little bit. The reason I want to quantify it is because we're working through that with our largest customer.

是的。勞倫特回答你的問題，而墨西哥表現不佳是因為——原因之一是網路安全，並且受到船舶限制。我不會量化它的原因。是有一點點。我想量化它的原因是因為我們正在與我們最大的客戶合作解決這個問題。

And these things because they have technology implications take a little time where we're working through it. We feel good about the fact that the business, generally, the brand and the business is healthy and it's a matter of timing. So more to come. But the reason I'm not giving you a clear answer is because I just need -- we need another quarter for this to improve and the systems to start working on both sides.

這些事情因為具有技術影響而需要一些時間來解決。我們對這樣一個事實感到滿意：總體而言，品牌和業務都很健康，而且這只是時間問題。未來還會有更多。但我沒有給你明確答案的原因是因為我只需要——我們需要另一個季度來改進這一點，並且系統開始在雙方上發揮作用。

Thank you very much.

非常感謝。

Thanks, Laurent.

謝謝，洛朗。

And with that, thanks, everyone, for joining the call and your questions, and happy holidays. We'll see you at the next call.

在此，感謝大家加入電話會議並提出問題，祝節日快樂。我們下次通話時見。

Thank you. This concludes today's conference call. Please disconnect your lines at this time.

謝謝。今天的電話會議到此結束。此時請斷開您的線路。