Levi Strauss & Co (LEVI) 2026 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company third-quarter fiscal 2026 earnings conference call for the period ending August 30, 2026. (Operator Instructions)

各位女士、各位先生，大家好，歡迎參加 Levi Strauss & Company（李維斯）2026 會計年度第三季（截至 2026 年 8 月 30 日）財報電話會議。(接線員指示)

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.

本次電話會議將被錄音，未經公司書面許可，不得全部或部分複製。本次電話會議亦將透過網際網路直播，網路直播重播將於公司網站 levistrauss.com 上提供一個季度供查閱。

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

現在我想把電話交給 Levi Strauss & Company 投資人關係副總裁 Aida Orphan。

Thank you for joining us on the call today to discuss the results for our third-quarter of fiscal 2026. Joining me on today’s call are Michelle Gass, our President and CEO; and Harmit Singh, our Chief Financial and Growth Officer.

感謝各位今天加入我們的電話會議，一同討論 2026 會計年度第三季的業績結果。今天與我一同出席的有：我們的總裁暨執行長 Michelle Gass，以及我們的財務與成長長（Chief Financial and Growth Officer）Harmit Singh。

We’d like to remind you that we will be making forward-looking statements based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in our reports filed with the SEC. We assume no obligation to update any of these forward-looking statements. Additionally, during this call, we will discuss certain non-GAAP financial measures which are not intended to be a substitute for our GAAP results. Definitions of these measures and reconciliations to their most comparable GAAP measure are included in our earnings release, available on the IR section of our website, investors.levistrauss.com.

我們提醒各位，本次會議將基於目前的預期發表前瞻性陳述，而這些陳述受某些風險與不確定性影響，可能導致實際結果與陳述內容出現重大差異。相關風險與不確定性已在我們向美國證券交易委員會（SEC）提交的報告中詳述。我們不承擔更新任何前瞻性陳述的義務。此外，在本次會議中，我們將討論若干非 GAAP 財務衡量指標，該等指標並非用以取代我們的 GAAP 結果。這些指標的定義以及與最可比 GAAP 指標的調節表，已包含於我們的財報新聞稿中，可於我們網站的投資人關係（IR）專區 investors.levistrauss.com 取得。

Please note that Michelle and Harmit will be referencing organic net revenues or constant currency numbers unless otherwise noted, and the information provided is based on continuing operations. Finally, this call 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 one hour, so please limit yourself to one question at a time to allow others to have their questions addressed.

請注意，除非另有說明，Michelle 與 Harmit 將引用有機淨營收（organic net revenues）或固定匯率（constant currency）數據，且所提供資訊皆基於持續經營業務。最後，本次會議將於我們的 IR 網站進行網路直播，會後不久亦可於網站上收聽重播。今天的會議安排為一小時，為讓更多人能提問，請每次僅提出一個問題。

Now I’d like to turn the call over to Michelle.

現在我想把電話交給 Michelle。

Welcome, everyone, and thank you for joining us. Over the past several years, we have transformed Levi Strauss & Co. into a more diversified, higher growth company. We have sharpened our focus on the areas where we see the greatest opportunities to win, expanded internationally, built a more balanced DTC and wholesale model, and evolved Levi’s from a denim bottoms business into a leading global denim lifestyle company.

各位好，感謝大家加入我們。過去幾年，我們已將 Levi Strauss & Co. 轉型為一家更多元、成長性更高的公司。我們更聚焦於我們認為最具勝出機會的領域、擴展國際市場、建立更均衡的 DTC 與批發模式，並將 Levi’s 從以丹寧下身為主的業務，進一步發展為領先全球的丹寧生活風格公司。

While we delivered strong results across much of the business, our DTC performance fell short of our expectations during the quarter. As we’ll discuss on the call, we have a clear understanding of what worked and what did not, and we have already taken targeted actions to improve performance.

雖然我們在業務多數領域交出強勁表現，但本季 DTC 的表現未達我們的預期。如同我們在會議中將討論的，我們已清楚了解哪些做得好、哪些未奏效，並已採取具針對性的行動以改善表現。

Before I turn to our Q3 results, I’d like to take a moment to speak to the CFO appointment we announced last week. I’m delighted to share that we have named John Vandemore as the company’s next CFO. John brings more than two decades of financial leadership experience across global consumer businesses, most recently serving as CFO of Skechers, where he helped support its growth into one of the world’s largest footwear brands.

在我談到第三季業績之前，我想先花一點時間談談我們上週宣布的 CFO 任命。我很高興與各位分享，我們已任命 John Vandemore 為公司下一任 CFO。John 在全球消費性企業擁有超過二十年的財務領導經驗，最近擔任 Skechers 的 CFO，並協助其成長為全球最大的鞋類品牌之一。

He is a proven operator with deep financial expertise, a track record of driving profitable growth and margin expansion, and strongly aligns with our strategy, brand, and culture. I also want to take this opportunity to thank Harmit for his leadership and dedication over the past 14 years. He has played an important role in transforming Levi Strauss & Co. into a more direct-to-consumer, diversified, and profitable company. Harmit has been a trusted partner to me and to our leadership team, and I’m grateful for his many contributions to the company.

他是一位經驗證明的營運型領導者，具備深厚的財務專業能力，擁有推動獲利成長與毛利率擴張的實績，且與我們的策略、品牌與文化高度契合。我也想藉此機會感謝 Harmit 在過去 14 年的領導與投入。他在將 Levi Strauss & Co. 轉型為更以直面消費者（direct-to-consumer）、更多元且更具獲利能力的公司過程中，扮演了重要角色。Harmit 一直是我與管理團隊值得信賴的夥伴，我非常感謝他對公司的諸多貢獻。

Now turning to Q3. As a reminder, all numbers Harmit and I will reference are on an organic basis. The quarter again demonstrated the benefits of our diversified portfolio and reinforced our confidence that we have the right strategies in place to drive sustainable, long-term, profitable growth. We delivered another quarter of mid-single-digit growth, up 5% on an organic basis. Year to date, our business is up 7% versus the prior year.

接著談第三季。提醒各位，Harmit 與我所引用的所有數字皆以有機口徑（organic basis）呈現。本季再次展現我們多元化產品組合的優勢，並強化我們的信心：我們已具備正確的策略，能推動可持續、長期且具獲利性的成長。我們再度交出中個位數成長的一季，有機基礎年增 5%。年初至今，我們的業務較去年同期成長 7%。

Our international business grew 8% this quarter, led by Asia, which has been a consistent source of strength throughout the year and delivered another quarter of double-digit growth while profitability continues to improve as the business scales. Global wholesale continued its strong momentum, up 6%, with growth across all segments. Our strategy to expand beyond denim continues to deliver results. Categories outside our Levi’s denim bottoms business accounted for approximately 50% of our top-line growth in the quarter, driven in part by accelerating momentum in tops, which grew 7%. That said, DTC performance in the quarter fell short of our expectations, driven primarily by softer traffic trends in both the US and Europe.

本季我們的國際業務成長 8%，由亞洲領軍；亞洲今年以來一直是穩定的成長動能來源，本季再度達成雙位數成長，且隨著規模擴大，獲利能力持續改善。全球批發業務延續強勁動能，成長 6%，各個區隔皆有成長。我們拓展丹寧以外品類的策略持續帶來成果。本季 Levi’s 丹寧下身業務以外的品類，約占我們營收成長的 50%，部分動能來自上衣（tops）加速成長，上衣成長 7%。不過，本季 DTC 表現未達我們預期，主要原因是美國與歐洲的來客數（traffic）趨勢較疲弱。

In Europe, unseasonably warm weather across several key markets weighed on traffic for much of the quarter. As temperatures normalized, traffic and sales trends improved meaningfully, and those improvements continued into Q4 quarter to date.

在歐洲，數個主要市場出現反常偏暖的天氣，使得本季大部分時間的來客數承壓。隨著氣溫回歸正常，來客數與銷售趨勢明顯改善，且這些改善延續至第四季截至目前的表現。

In the US, while our marketing continued to generate strong consumer engagement and reinforce brand heat, we had fewer major brand-building moments than a year ago. In addition, our back-to-school campaign did not drive the level of traffic and demand we had anticipated.

在美國，雖然我們的行銷持續帶來強勁的消費者互動並強化品牌熱度，但相較去年，我們的大型品牌打造時刻（brand-building moments）較少。此外，我們的返校季（back-to-school）活動未能帶動我們原先預期的來客數與需求水準。

Importantly, we moved quickly to address these US traffic challenges and have a clear plan to improve performance. We are increasing investment behind areas of strong consumer demand, particularly low-rise fits, and strengthening inventory positions accordingly.

重要的是，我們迅速採取行動因應美國來客數的挑戰，並已擬定明確計畫以改善表現。我們正加大對消費者需求強勁領域的投資，特別是低腰版型（low-rise fits），並相應強化庫存配置。

We are deepening our marketing investments, creating a stronger cadence of traffic-driving moments, and placing greater emphasis on mid-funnel product marketing. We are strengthening commercial execution across our stores and digital channels with a sharpened focus on conversion and other key productivity metrics.

我們正加深行銷投資，打造更強的引流節奏（traffic-driving moments），並更加重視中漏斗（mid-funnel）的產品行銷。我們也正強化門市與數位通路的商業執行力，更聚焦於轉換率（conversion）及其他關鍵生產力指標。

Since implementing these actions, we have seen positive trends in our US direct-to-consumer business. Combined with the continued improvement in Europe, this gives us confidence that DTC will return to at least mid-single-digit growth in the fourth quarter and deliver high single-digit growth for the full year.

自從落實這些行動以來，我們已在美國 DTC 業務看到正向趨勢。再加上歐洲持續改善，這讓我們有信心 DTC 將在第四季回到至少中個位數成長，並在全年達成高個位數成長。

To support these efforts and fuel growth, we are redeploying a substantial majority of the tariff refunds we recorded in the third quarter back into the business across both Q3 and Q4. In addition to increased marketing investments, we are putting those funds to work behind sharper value for consumers during key holiday promotional moments and enhanced supply chain capabilities to strengthen our competitive position and support sustainable long-term growth.

為支持這些工作並推動成長，我們正將第三季認列的大部分關稅退稅（tariff refunds）重新投入業務，涵蓋第三季與第四季。除增加行銷投資外，我們也將這些資金用於在關鍵假期促銷時點為消費者提供更具吸引力的價值主張，以及提升供應鏈能力，以強化我們的競爭地位並支持可持續的長期成長。

I will now walk you through the highlights from the quarter in the context of our strategies. Starting with our first strategy to be brand led. In Q3, we continued to reinforce Levi’s position at the center of culture through impactful campaigns, premium experiences, and iconic brand moments around the world.

接下來，我將在我們策略的脈絡下，帶各位回顧本季的重點。先從我們的第一項策略：以品牌為引領（brand led）。在第三季，我們透過具影響力的行銷活動、高端體驗，以及全球各地具代表性的品牌時刻，持續鞏固 Levi’s 在文化核心的地位。

A recent example of this was our partnership with one of our top European wholesale accounts, Zalando, for its fall-winter campaign that featured Lily Collins in head-to-toe Levi’s and showcased the breadth of our denim lifestyle offering across Europe. Our debut at Paris Couture Week was another milestone in the elevation of the brand, bringing Levi’s to one of fashion’s most influential and prestigious global stages.

近期的一個例子是，我們與歐洲頂級批發客戶之一 Zalando 合作其秋冬行銷活動，該活動由 Lily Collins 以從頭到腳的 Levi’s 造型亮相，並在歐洲展示我們丹寧生活風格產品組合的廣度。我們首次登上巴黎高級訂製時裝週也是品牌升級的另一個里程碑，讓 Levi’s 站上全球最具影響力且最負盛名的時尚舞台之一。

Looking ahead, we have a consistent drumbeat of brand activations and marketing moments planned through year-end with high-impact partnerships, including Shaboozey. We are amplifying our strongest product franchises, such as loose, low-rise, and Superlow, through increased marketing support and compelling product storytelling.

展望未來，我們已規劃在年底前持續推出一系列品牌啟動活動與行銷時刻，並透過包括 Shaboozey 在內的高影響力合作夥伴關係來推動。我們將加大行銷資源與更具吸引力的產品敘事，放大我們最強勢的產品系列，例如寬鬆版型、低腰，以及 Superlow。

For the holidays, we are as prepared as we have ever been with our most robust activation plan in years. From breakthrough brand moments and experiential pop-ups to elevate store experiences, personalized styling, and curated gifting assortments, we are creating new ways for consumers to engage with Levi’s throughout the holiday season. Combined with strong product newness and focused commercial execution, these efforts are designed to drive traffic, improve conversion, and deepen consumer connection with the Levi’s brand.

針對假期檔期，我們的準備程度前所未有，並推出多年來最完整的啟動計畫。從突破性的品牌時刻與沉浸式快閃體驗以提升門市體驗，到個人化造型服務與精選送禮組合，我們正在創造全新的方式，讓消費者在整個假期季節與 Levi’s 互動。結合強勁的新品動能與聚焦的商業執行，這些舉措旨在帶動客流、提升轉換率，並加深消費者與 Levi’s 品牌的連結。

Now turning to product. The Levi’s brand grew 4% with both men’s and women’s growing mid-single digits. While DTC pressure was most pronounced in our women’s bottoms business, we have moved quickly to increase support behind winning trends and strengthen execution. Encouragingly, the DTC women’s business accelerated in September, and we expect our total women’s business to be up high single digits in Q4.

接下來談產品。Levi’s 品牌成長 4%，男裝與女裝皆呈現中個位數成長。雖然 DTC 壓力在我們女裝下身品類最為明顯，但我們已迅速採取行動，加大對勝出趨勢的支持並強化執行。令人鼓舞的是，DTC 女裝業務在 9 月加速成長，我們預期第四季女裝整體業務將達到高個位數成長。

In men’s bottoms, newer iterations of our icons, including the 501 Loose and 501 Relaxed, continued to gain traction, demonstrating our ability to drive growth through both heritage and innovation.

在男裝下身方面，我們經典款的較新演繹版本（包括 501 Loose 與 501 Relaxed）持續獲得市場青睞，展現我們能同時透過傳承與創新來推動成長的能力。

In women’s, we saw strong demand for wider leg silhouettes, and the low-rise trend continued to fuel growth with our Low Loose and newer platforms like the Cinch Baggy delivering standout performance. These strong-performing franchises give us confidence in our ability to further scale proven fits and drive future growth.

在女裝方面，我們看到對寬褲管輪廓的強勁需求，而低腰趨勢也持續帶動成長；其中 Low Loose 以及如 Cinch Baggy 等較新的平台表現尤為突出。這些表現強勁的系列讓我們對進一步擴大已驗證版型、並推動未來成長的能力更具信心。

Importantly, growth in the quarter was balanced across both our core denim business and our expanding lifestyle assortment. Categories beyond bottoms contributed roughly half of our growth in the quarter, expanding our addressable market and building Levi’s into a true denim lifestyle company.

重要的是，本季成長在我們核心丹寧業務與持續擴張的生活風格產品組合之間保持均衡。下身以外的品類約貢獻了本季成長的一半，擴大了我們可觸及的市場，並將 Levi’s 打造成真正的丹寧生活風格公司。

Tops delivered a solid quarter of growth led by women’s tops, which increased 10%. Growth was broad-based across the assortment with strong momentum in blouses, wovens, sweaters, outerwear, and tees. Blue Tab continues to exceed our expectations, delivering strong double-digit growth with broad-based strength across both men’s and women’s.

上衣品類本季實現穩健成長，其中以女裝上衣帶動，成長 10%。成長動能遍及整體產品組合，襯衫、梭織、毛衣、外套與 T 恤皆展現強勁動能。Blue Tab 持續超出我們預期，實現強勁的雙位數成長，且在男裝與女裝皆呈現廣泛的強勢表現。

As we expand the assortment into more elevated products, including cashmere and premium knitwear, Blue Tab is extending the brand into higher price points, attracting new consumers, and further premiumizing the Levi’s brand in the marketplace.

隨著我們將產品組合擴展至更高端的產品（包括羊絨與高級針織），Blue Tab 正把品牌延伸至更高的價格帶，吸引新消費者，並進一步提升 Levi’s 在市場中的高端化程度。

Entering our fourth quarter, we are confident in our holiday assortment and the continued opportunity to build on the momentum we’re seeing across our lifestyle categories. Sweaters will be a key focus, complemented by fresh denim innovation across both men’s and women’s. Taken together, we are entering the holiday season with a stronger assortment, exciting newness across both lifestyle categories and denim, and a compelling offering for consumers around the world.

進入第四季，我們對假期產品組合充滿信心，並看好在生活風格品類所見動能之上持續加乘的機會。毛衣將是關鍵重點，同時男裝與女裝丹寧也將推出嶄新創新產品作為搭配。綜合而言，我們以更強的產品組合、生活風格品類與丹寧的令人興奮新品，以及面向全球消費者的具吸引力產品供給，迎接假期季節。

Now shifting to our next strategy to be DTC first. Our global direct-to-consumer business grew 2% in the quarter, with comp sales flat to last year, driven by the softer traffic in the US and Europe, as I mentioned earlier. Importantly, both businesses have returned to positive trends in recent weeks.

接著轉向我們的下一項策略：以 DTC 為優先。本季我們的全球直營消費者（DTC）業務成長 2%，同店銷售與去年持平，主要受美國與歐洲客流較疲弱所影響，如我先前所提。重要的是，近幾週兩項業務都已回到正向趨勢。

Our DTC businesses in Latin America and Asia continued to deliver exceptional momentum. Latin America delivered broad-based growth across key markets, while in Asia, our DTC business achieved its seventh consecutive quarter of double-digit growth, driven by strong comp sales. Both Asia and Latin America remain under-penetrated from a DTC perspective relative to the company average, providing a significant runway for continued growth. Our e-commerce channel delivered another quarter of double-digit growth. We continue to upgrade levi.com and recently improved the site with richer storytelling, more dynamic videos, and inspirational styling content.

我們在拉丁美洲與亞洲的 DTC 業務持續展現卓越動能。拉丁美洲在主要市場呈現廣泛成長；而在亞洲，我們的 DTC 業務在強勁同店銷售帶動下，已連續第七季達成雙位數成長。就 DTC 滲透率而言，亞洲與拉丁美洲相較公司平均仍屬低滲透，為持續成長提供了可觀的長期跑道。我們的電商通路本季再度實現雙位數成長。我們持續升級 levi.com，近期也透過更豐富的故事內容、更具動態的影片，以及具啟發性的穿搭內容來改善網站體驗。

In the US, we launched our AI shopping assistant, which provides styling advice, helping consumers discover new styles, and build complete outfits. While still early, we’re seeing fans who engage with the tool adding to bag at roughly three times our average rate. These efforts are part of our broader journey to build an entirely new digital flagship experience, including a complete redesign and platform migration of levi.com. We are making great progress and both efforts remain on track for a global launch next year.

在美國，我們推出了 AI 購物助理，提供穿搭建議，協助消費者探索新風格並打造完整造型。雖然仍在早期階段，但我們看到與該工具互動的粉絲，其加入購物袋的比例約為我們平均水準的三倍。這些努力是我們更宏觀旅程的一部分，目標是打造全新的數位旗艦體驗，包括對 levi.com 的全面改版與平台遷移。我們進展良好，兩項工作皆按計畫於明年進行全球上線。

Once complete, levi.com will offer personalized experiences, dynamic outfit recommendations, immersive fit navigation, and other unique capabilities that will convert more consumers into head-to-toe lifestyle shoppers. We’re seeing positive momentum in the business and continue to expect our DTC channel to grow at a high single-digit rate for the full year, including mid-single digit growth in the fourth quarter.

完成後，levi.com 將提供個人化體驗、動態造型推薦、沉浸式版型導覽，以及其他獨特功能，將更多消費者轉化為從頭到腳的生活風格購物者。我們看到業務呈現正向動能，並仍預期 DTC 通路全年將以高個位數成長，包括第四季的中個位數成長。

Global wholesale remained a source of strength in the quarter, increasing 6%, reflecting broad-based growth across segments, including in the US. The continued momentum reflects the health of our brand with key partners in improving sell-through trends. Importantly, we are seeing strength across a broader range of categories beyond denim, reflecting increasing confidence from wholesale partners in the breadth of the Levi’s offering.

全球批發業務本季仍是強勁動能來源，成長 6%，反映各細分領域（包括美國）皆呈現廣泛成長。持續的動能反映我們品牌在關鍵合作夥伴端的健康度，以及銷售出清（sell-through）趨勢的改善。重要的是，我們看到丹寧以外更廣泛品類的強勢表現，反映批發合作夥伴對 Levi’s 產品供給廣度的信心提升。

The consistent performance we have seen in wholesale throughout the year reinforces our conviction in our DTC first, but not DTC only strategy, and demonstrates the complementary nature of our channels, allowing us to meet consumers wherever they choose to shop.

我們今年在批發通路所見的一致性表現，強化了我們對「DTC 優先、但不僅限 DTC」策略的信念，並證明各通路之間具互補性，使我們能在消費者選擇購物的任何地方與其接觸。

Now turning to our third strategy, powering the portfolio. This quarter, our international business grew 8%, led by Asia. The momentum in the region was further supported by our breakthrough partnership with Rosé and a series of pop-up experiences in Bangkok, Tokyo, Shanghai, and Seoul. The consumer response was extraordinary, and together these activations generated more than 3 billion impressions and approximately $45 million in earned media value.

接下來談第三項策略：驅動產品組合。本季我們的國際業務成長 8%，由亞洲領軍。該區域的動能亦受到我們與 Rosé 的突破性合作，以及在曼谷、東京、上海與首爾的一系列快閃體驗所支持。消費者反應極為熱烈，這些啟動活動合計創造超過 30 億次曝光，並帶來約 4,500 萬美元的贏得媒體價值（earned media value）。

We are also encouraged by the progress we’re seeing in China, up 13%, where we continue to strengthen the brand and enhance execution. While still early, we believe China represents one of the most significant long-term growth opportunities within our portfolio, and we are increasingly confident in our ability to unlock that potential over time.

我們也對中國市場的進展感到鼓舞，成長 13%；我們持續強化品牌並提升執行力。雖然仍在早期階段，但我們相信中國是我們產品組合中最重要的長期成長機會之一，且我們對隨時間推進解鎖其潛力的能力愈發有信心。

Signature plays an important role in our portfolio by extending the reach of the Levi’s brand. Signature grew 13% in the quarter, driven by strength in both core denim and our expanding lifestyle assortment. Denim tops and outerwear, looser silhouettes, and new categories like maternity all contributed to the brand’s strong performance.

Signature 在我們的產品組合中扮演重要角色，透過延伸 Levi’s 品牌觸及面來擴大影響力。Signature 本季成長 13%，動能來自核心丹寧與持續擴張的生活風格產品組合的雙重強勢。丹寧上衣與外套、更寬鬆的輪廓，以及如孕婦裝等新類別，皆對品牌的強勁表現有所貢獻。

Beyond Yoga was up 9%, driven by growth across both channels. Glowzone, our new performance collection, which launched in July, is generating positive early results and supports our strategy of expanding Beyond Yoga into more occasions, like higher intensity workout activities.

Beyond Yoga 成長 9%，主要由兩大通路的成長所帶動。我們於 7 月推出的全新機能系列 Glowzone，初期成果正向，並支持我們將 Beyond Yoga 拓展至更多穿著情境的策略，例如更高強度的運動訓練活動。

As we approach closing out the year, we are more confident than ever in the long term. Over the last three years, we have built a larger, more diversified, and more profitable Levi Strauss & Co. adding nearly $1 billion in revenue, significant margin expansion, and stronger earnings, while significantly strengthening our cash generation. With this strong foundation, we see meaningful opportunities to drive sustainable top and bottom-line growth across our channels and markets as we further build our position as the leading global denim lifestyle company.

隨著我們接近年度收官，我們對長期前景比以往任何時候都更有信心。過去三年，我們打造出規模更大、更多元且更具獲利能力的 Levi Strauss & Co.，新增近 10 億美元營收、顯著擴大毛利率並提升獲利，同時大幅強化現金創造能力。在這個堅實基礎上，隨著我們進一步鞏固作為全球領先丹寧生活風格公司的地位，我們看見在各通路與市場推動可持續的營收與獲利成長（上、下線成長）的重大機會。

With that, I’ll turn it over to Harmit. Harmit?

接下來我把時間交給 Harmit。Harmit？

Thank you, Michelle. Before we get into the quarter, I’d like to start by welcoming and congratulating John as the company’s next CFO. John’s deep financial expertise and strong track record, combined with the financial and growth foundation we have built as a world-class finance team, give me confidence that the company is well-positioned to deliver sustainable, profitable growth.

謝謝你，Michelle。在進入本季之前，我想先歡迎並祝賀 John 成為公司下一任 CFO。John 深厚的財務專業與優異的實績，再加上我們作為世界級財務團隊所建立的財務與成長基礎，讓我有信心公司已具備條件，能夠實現可持續且具獲利性的成長。

While the third quarter had its challenges, our teams responded quickly. As Michelle mentioned, we saw improving trends emerge in September, particularly in DTC and women, which gives us confidence in the actions underway and our updated outlook. We enter the final quarter of the year with improving momentum, strong financial discipline, and a clear focus on execution.

第三季雖然面臨挑戰，但我們的團隊迅速做出回應。如 Michelle 所提到，我們在 9 月看到趨勢改善，尤其是在 DTC 與女裝方面，這讓我們對正在推進的行動以及更新後的展望更有信心。我們以改善中的動能、嚴謹的財務紀律，以及清晰的執行聚焦，進入年度最後一季。

Before I turn to the results, I want to address the impact of tariff refunds, which create some unique dynamics in quarter three and Q4 results. During the third quarter, we recorded approximately $80 million of tariff refunds, reflecting substantially all the refunds we expect to receive. We are redeploying roughly three-quarters of the benefit back into the business to support future growth. These investments are expected to be split approximately 60/40 between SG&A and COGS and are focused on the following three areas: incremental marketing to drive demand, enhanced supply chain capabilities to improve competitiveness over time, and sharper value for consumers during key holiday promotional moments.

在我說明業績之前，我想先談談關稅退稅的影響，這在第三季與第四季的結果上造成一些特殊的動態。第三季我們認列約 8,000 萬美元的關稅退稅，基本上反映了我們預期可收到的幾乎全部退稅金額。我們正將約四分之三的效益重新投入業務，以支持未來成長。這些投資預期約以 60/40 分配於 SG&A 與 COGS，並聚焦於三個面向：增加行銷投入以帶動需求、強化供應鏈能力以隨時間提升競爭力，以及在關鍵假期促銷檔期為消費者提供更具吸引力的價值。

Approximately $25 million of these investments were redeployed during the third quarter, with approximately $35 million expected to be invested in the fourth quarter. We believe this is the right approach. It allows us to strengthen the business, support our near-term momentum, and still deliver on our annual growth algorithm.

其中約 2,500 萬美元的投資已在第三季重新投入，第四季預計再投入約 3,500 萬美元。我們認為這是正確的做法。這讓我們得以強化業務、支撐短期動能，同時仍能達成我們年度成長演算法（growth algorithm）的目標。

With that context, let me turn to our third quarter results. Overall, we delivered mid-single digit revenue growth with net revenues up 4% on a reported basis and 5% on an organic basis. Gross margin expanded 450 basis points to 66.2%. The benefit from tariff refunds, net of redeployments, contributed 370 basis points to gross margin. Excluding that benefit, the remaining non-tariff related gross margin expansion of 80 basis points was driven by lower product cost partially offset by foreign exchange.

在此背景下，我來說明第三季業績。整體而言，我們實現中個位數的營收成長：以報表口徑計算，淨營收成長 4%；以有機口徑計算，成長 5%。毛利率擴張 450 個基點至 66.2%。關稅退稅的效益（扣除重新投入後）對毛利率貢獻 370 個基點。若排除該效益，其餘非關稅因素帶來的毛利率擴張 80 個基點，主要由產品成本下降所驅動，但部分被匯率因素抵銷。

Adjusted SG&A as a percentage of net revenues was 50.8%, which included approximately $6 million, or 40 basis points of tariff benefit redeployment. Excluding that redeployment, adjusted SG&A increased 50 basis points versus the prior year, driven by higher distribution costs and deleverage from softer DTC revenue growth.

調整後 SG&A 佔淨營收比重為 50.8%，其中包含約 600 萬美元（或 40 個基點）的關稅效益重新投入。若排除該重新投入，調整後 SG&A 較去年增加 50 個基點，主要因配送成本上升，以及 DTC 營收成長較疲弱所造成的槓桿效益下降（deleverage）。

Distribution costs were higher than we expected this quarter, and the path to realizing the full benefits of our network transformation has taken longer than we anticipated, reflecting both the complexity of the transition and a fire-related incident that impacted operations. That said, we are making progress. We closed our Hebron distribution center at the end of the third quarter and expect to begin realizing benefits from the closure in 2027.

本季配送成本高於我們預期，而要完全實現我們物流網路轉型的效益所需時間也比預期更長，反映出轉換的複雜性，以及一宗火災事件對營運造成的影響。儘管如此，我們正在取得進展。我們已於第三季末關閉 Hebron 配送中心，並預期自 2027 年起開始實現關閉帶來的效益。

In Europe, where our distribution center transformation is complete, we are already seeing distribution cost leverage year to date. As we continue to scale and optimize the network, we expect service, efficiency, and productivity benefits to build over time.

在歐洲，我們的配送中心轉型已完成，我們今年迄今已看到配送成本的槓桿效益。隨著我們持續擴大規模並優化網路，我們預期服務、效率與生產力的效益將隨時間逐步累積。

Adjusted EBIT margin was 15.5%. The tariff refund benefit, net of redeployment, contributed 330 basis points to adjusted EBIT margin. The remaining non-tariff related EBIT margin expansion of 40 basis points was largely driven by accelerating margins in Asia and growth in wholesale. This is a good example of the power of the and in our model. Even in a dynamic environment, the strength of our diversified business help us deliver both growth and margin expansion.

調整後 EBIT 利潤率為 15.5%。關稅退稅效益（扣除重新投入後）對調整後 EBIT 利潤率貢獻 330 個基點。其餘非關稅因素帶來的 EBIT 利潤率擴張 40 個基點，主要由亞洲利潤率加速提升以及批發業務成長所驅動。這是我們模型中「and」力量的良好例證。即使在多變的環境中，我們多元化業務的優勢仍能幫助我們同時實現成長與利潤率擴張。

Adjusted diluted EPS was $0.48, which included $0.11 benefit from tariff refunds, net of redeployment. Excluding this benefit, the remaining 9% growth versus Q3 2025 was driven by EBIT margin expansion and share buybacks.

調整後稀釋每股盈餘（EPS）為 0.48 美元，其中包含關稅退稅效益（扣除重新投入後）帶來的 0.11 美元貢獻。若排除該效益，較 2025 年第三季其餘部分仍成長 9%，主要由 EBIT 利潤率擴張與庫藏股回購所帶動。

Moving to the balance sheet. We ended the quarter with inventory down 3%, reflecting continued progress in improving the health and productivity of our inventory while maintaining the flexibility to support growth opportunities. We continue to strengthen the lifecycle management of our inventory and expect to exit the year with inventory levels in line with our expected sales growth.

接著看資產負債表。本季末庫存下降 3%，反映我們在改善庫存健康度與生產力方面持續取得進展，同時保有支援成長機會所需的彈性。我們持續強化庫存的生命週期管理，並預期年底庫存水位將與我們預期的銷售成長相一致。

Turning to shareholder returns. We returned $62 million to shareholders in the form of dividends during the quarter, representing 11% increase versus last year. In addition, given our strong cash position and confidence in the business outlook, we intend to repurchase an additional $100 million of shares through an accelerated share repurchase program.

再來看股東報酬。本季我們以股利形式回饋股東 6,200 萬美元，較去年增加 11%。此外，鑑於我們強勁的現金部位以及對業務展望的信心，我們計畫透過加速股份回購計畫（ASR）額外回購 1 億美元的股票。

Now, let’s review the key highlights by segment. In the Americas, net revenues grew 2%. LATAM delivered another strong quarter, with revenues up 10%, fueled by strength across channels and growth in every market in the region. Operating margin expanded 640 basis points to 29.9%, primarily due to the benefit of the tariff refund, net of redeployments. In quarter four, we expect the US to return to growth, driven by improving DTC trends.

現在，讓我們按事業部門回顧重點亮點。在美洲地區，淨營收成長 2%。拉丁美洲（LATAM）再度交出強勁一季，營收成長 10%，受惠於各通路的強勢表現以及區域內每個市場皆有成長。營業利潤率擴張 640 個基點至 29.9%，主要來自關稅退稅效益（扣除重新投入後）。在第四季，我們預期美國將重回成長，主要由 DTC 趨勢改善所帶動。

Europe net revenues grew 5%. Similar to the performance we saw in the first half of the year, driven by double-digit growth in wholesale. We saw strength in key markets, including the UK, Germany, and Italy, as well as growth across categories. Operating margin increased 150 basis points to 22.8%, driven by gross margin strength. As warmer weather moderated, DTC performance improved. Looking ahead, wholesale pre-bookings for spring/summer 2027 are up high single digits, giving us confidence in the continued momentum of the business.

歐洲淨營收成長 5%。與我們在上半年看到的表現相似，主要由批發業務的雙位數成長所驅動。我們在英國、德國與義大利等關鍵市場看到強勁表現，且各品類均有成長。營業利潤率提升 150 個基點至 22.8%，主要由毛利率走強所帶動。隨著較暖的天氣影響趨緩，DTC 表現有所改善。展望未來，2027 年春夏批發預訂（pre-bookings）成長高個位數，讓我們對業務動能的延續更有信心。

Asia net revenues delivered its third consecutive quarter of double-digit growth, up 10%, fueled by strength across channels, categories, and key markets, including Japan, India, Australia, and China. Strong gross margin expansion drove operating margin leverage of 220 basis points to 14.2%. Year to date Asia EBIT margin is up 240 basis points to 16.7, underscoring the improving margin profile of the segment and its growing contribution to overall company profitability. That sustained momentum gives us confidence to continue investing behind the segment with many of our nearly 60 net new system stores planned for Asia in the fourth quarter.

亞洲淨營收連續第三季達成雙位數成長，上升 10%，受惠於各通路、各品類及日本、印度、澳洲與中國等關鍵市場的強勁表現。強勁的毛利率擴張帶動營業利潤率槓桿提升 220 個基點至 14.2%。今年迄今亞洲 EBIT 利潤率提升 240 個基點至 16.7，凸顯該事業部門利潤結構的改善，以及其對公司整體獲利貢獻的提升。這股持續動能讓我們有信心持續加碼投資該事業部門；我們第四季規劃新增的近 60 家系統淨新店中，有相當部分將落在亞洲。

Turning to guidance. Our updated outlook reflects both the benefit of the tariff refund and our decision to redeploy a significant portion of that benefit back into the business. We believe this balanced approach strengthens our competitive position, supports near-term growth, and keeps us on track to deliver our annual algorithm of mid-single-digit revenue growth with a clear path to 15% operating margins over time.

接著談指引。我們更新後的展望同時反映了關稅退稅帶來的效益，以及我們決定將其中相當大一部分效益重新投入業務。我們相信這種平衡作法能強化我們的競爭地位、支持短期成長，並讓我們持續朝著年度演算法（中個位數營收成長）前進，且隨時間推進有明確路徑達成15%的營業利益率。

Importantly, recent trends reinforce our confidence in the fourth quarter. We are seeing improved momentum in DTC and women’s, including positive growth in US DTC, and we are increasing marketing support and investment behind winning products as we prepare for the holiday season. Overall, we are confident in our ability to lap this year’s strong results, inclusive of the net tariff benefit, as we set the business up for 2027.

重要的是，近期趨勢進一步強化我們對第四季的信心。我們看到DTC與女裝的動能改善，包括美國DTC呈現正成長；同時在迎接假期旺季之際，我們也正加大行銷支持，並增加對暢銷產品的投資。整體而言，隨著我們為2027年布局，我們有信心能夠在包含關稅淨效益在內的情況下，超越今年的強勁表現基期。

For the full year, we now expect reported net revenues growth to be approximately 7%, versus our previous outlook of 7% to 7.5%, driven by the stronger US. dollar. We expect organic net revenues to be a little stronger at approximately 6%, which is at the high end of our previous expectations. We now expect gross margin of approximately 63% for the full year, including approximately 80 basis points of net tariff refund benefit. Excluding this, gross margin is higher than our previous outlook, driven by the benefit of the lower tariff rate and lower product costs.

就全年而言，我們目前預期報告口徑的淨營收成長約為7%，低於先前7%至7.5%的展望，主要受美元走強影響。我們預期有機淨營收將略為更強，約為6%，位於先前預期區間的高端。我們目前預期全年毛利率約為63%，其中包含約80個基點的關稅退稅淨效益。若排除此項，毛利率仍高於先前展望，主要受較低關稅稅率與較低產品成本的效益帶動。

We now expect adjusted SG&A as a percentage of revenue to be approximately 51%, compared with a prior outlook of 49.7% to 49.9%. This includes approximately 50 basis points of redeployment of the tariff refund benefit. Accordingly, we now expect adjusted EBIT margin to be slightly above the previous guidance at approximately 12.1%. This includes approximately 30 basis points of net tariff refund benefit. Excluding the net tariff refund benefit, adjusted EBIT margin would be up 40 basis points versus the prior year. We now expect adjusted diluted earnings per share to be in the range of $1.54 to $1.56 for the full year, including a $0.04 net tariff refund benefit.

我們目前預期調整後SG&A占營收比重約為51%，相較先前49.7%至49.9%的展望。其中包含約50個基點將關稅退稅效益重新投入的影響。因此，我們目前預期調整後EBIT利潤率約為12.1%，略高於先前指引。其中包含約30個基點的關稅退稅淨效益。若排除關稅退稅淨效益，調整後EBIT利潤率將較去年提升40個基點。我們目前預期全年調整後稀釋每股盈餘介於1.54至1.56美元之間，其中包含0.04美元的關稅退稅淨效益。

For the fourth quarter, we expect reported net revenues to be approximately 3% and organic net revenues to be approximately 4%, with the difference reflecting the impact of foreign exchange. We expect gross margin of approximately 61.8%, up 100 basis points versus prior year, including $3 million or another 10 basis points of net tariff refund redeployment costs.

就第四季而言，我們預期報告口徑淨營收約成長3%，有機淨營收約成長4%，差異反映外匯影響。我們預期毛利率約為61.8%，較去年提升100個基點，其中包含300萬美元（或另外10個基點）的關稅退稅重新投入成本。

Adjusted SG&A for the fourth quarter includes approximately $30 million of tariff refund redeployment costs. As a result, we expect adjusted EBIT margin of approximately 11.4% to 11.6% for the quarter, which includes 180 basis points of net tariff refund redeployment costs. This translates to adjusted diluted EPS of approximately $0.36 to $0.38, including $0.07 of net tariff refund redeployment.

第四季調整後SG&A包含約3,000萬美元的關稅退稅重新投入成本。因此，我們預期本季調整後EBIT利潤率約為11.4%至11.6%，其中包含180個基點的關稅退稅重新投入淨成本。這相當於調整後稀釋每股盈餘約0.36至0.38美元，其中包含0.07美元的關稅退稅重新投入。

While the third quarter highlighted a few areas of opportunity, the team responded with agility and urgency, and the actions we have taken are already beginning to show results. Even more importantly, the quarter also reinforced the power of our strategy and the benefits of our increasingly diversified business model. As I conclude, I want to say thank you to our employees, our fans, Michelle and the executive team, our Board, our shareholders, including the Levi’s family, and the buy side and the sell side analysts who follow us. Thank you for your support, your trust, and your partnership throughout my tenure.

雖然第三季凸顯了幾個可改善的面向，但團隊以敏捷與緊迫感做出回應，而我們採取的行動已開始展現成效。更重要的是，本季也再次印證我們策略的力量，以及我們日益多元化商業模式所帶來的好處。在結語之際，我想感謝我們的員工、我們的粉絲、Michelle與管理團隊、董事會、股東（包括Levi’s家族），以及關注我們的買方與賣方分析師。感謝各位在我任期內的支持、信任與合作夥伴關係。

Over the past 14 years, I’ve had the privilege of being part of one of the most significant chapters in the company’s history. Together, we strengthened the business. We turned the company to the public market, built a more diversified portfolio across channels, geographies, and categories, and significantly strengthened our balance sheet and financial foundation.

在過去14年裡，我有幸參與公司歷史上最重要的篇章之一。我們一起強化了業務。我們帶領公司進入公開資本市場，並在通路、地理區域與品類上建立更為多元的組合，同時大幅強化資產負債表與財務基礎。

But what I’m most proud of is that as the business has grown, so have our people, especially my world-class finance growth and transformation team. I’m deeply grateful to have been part of the journey and to have grown as a leader alongside so many of my talented colleagues. As I look ahead, I wish Michelle, John, and the entire company my very best. I’m honored to say that this is my 56th and final earnings call at the company and my 67th as a CFO.

但我最引以為傲的是，隨著業務成長，我們的人才也同步成長，尤其是我世界級的財務成長與轉型團隊。我非常感激能成為這段旅程的一部分，並與許多才華洋溢的同事一起成長為領導者。展望未來，我衷心祝福Michelle、John以及全公司一切順利。我很榮幸地說，這是我在公司參與的第56次、也是最後一次財報電話會議，也是我以CFO身分參與的第67次。

With that, operator, let’s open the line for questions.

那麼，接線員，讓我們開放電話線進行提問。

(Operator Instructions)

(接線員指示)

Laurent Vasilescu, BNP Paribas.

Laurent Vasilescu，法國巴黎銀行（BNP Paribas）。

Michelle, Harmit, I wanted to ask about your DTC trends in the US. I know Michelle, you provided some color there about traffic trends, but could you maybe just unpack a little bit more what drove the underperformance in the third quarter? How did the quarter progress by month?

Michelle、Harmit，我想請教你們在美國的DTC趨勢。我知道Michelle，你先前對流量趨勢提供了一些說明，但你能否再更進一步拆解一下，第三季表現不如預期的原因是什麼？本季按月份來看，走勢如何？

And then separately, Harmit, I think you mentioned that global DTC should grow mid-single digits in the fourth quarter, which is very encouraging. But should the US and Europe both grow mid-single digits? I think you also mentioned that you’ve seen positive trends in the recent weeks. But is that a comment in line with the fourth quarter commentary of mid-single digits?

另外，Harmit，我想你提到全球DTC在第四季應該會有中個位數成長，這非常令人鼓舞。但美國與歐洲是否都會有中個位數成長？我想你也提到最近幾週看到正向趨勢。但這樣的說法是否與你對第四季中個位數成長的評論一致？

Thanks, Laurent, for the question. I’ll just take the whole one because it’s all connected. Back to what happened US DTC, and I mentioned it in my remarks. I’ll add a little more color. First, I will say the Levi’s brand remains very strong, very healthy around the world, including in the US. I know we spoke to what really drove the growth, whether that was global wholesale up 6%, really strong growth international, up 8%, e-commerce double digit, et cetera. It’s worth mentioning in the US that US wholesale was also positive.

謝謝你，Laurent，謝謝你的問題。我就把整題一起回答，因為這些都彼此相關。回到美國DTC發生了什麼，我在發言中有提到。我再補充一些細節。首先我要說，Levi’s品牌在全球依然非常強勁、非常健康，包括在美國也是如此。我知道我們談到真正帶動成長的因素，例如全球批發成長6%、國際市場非常強勁成長8%、電商雙位數成長等等。值得一提的是，在美國，美國批發也呈現正成長。

So we really can isolate the DTC issue to Europe and the US. In Europe, it was very clear this was a weather-related issue. I think it’s no secret that it was very warm, and it impacted footfall for the industry, really. That impacted our business despite we had lots of great summer offerings, but the weather was at another level.

因此，我們確實可以把DTC的問題聚焦在歐洲與美國。在歐洲，很明顯這是與天氣相關的問題。我想這不是秘密：天氣非常炎熱，對整個產業的來客數（footfall）都造成影響。儘管我們有很多很棒的夏季商品供給，但天氣的影響程度超乎以往，仍然衝擊了我們的業務。

When the temperatures started cooling and weather moderated, we saw the trends come back. And so as we are in Europe right now, DTC, quarter to date, the trends are very robust. They’re positive and robust. So you should feel good about that. The other thing worth mentioning in Europe is that we had an incredible wholesale business. So suffice it to say, like I said, the brand’s very healthy there.

當氣溫開始下降、天氣趨於正常時，我們看到趨勢回升。因此，就我們目前在歐洲的情況來看，DTC在本季迄今的趨勢非常強勁。它是正向且強勁的。所以你應該可以對此感到放心。另外在歐洲值得一提的是，我們的批發業務表現非常出色。總之，如我所說，品牌在那裡非常健康。

In the US, I’ll say it again, brand is healthy. This really had to do with a tactical move around back to school and how we showed up for that period. We would say that our back-to-school campaign under-delivered our expectations. More specifically, our campaign was all around loose. Loose is still an important business. It’s a big volume driver for us, but the market in the US had really shifted to talk about low. Low rise was a lot of energy and a lot of competitiveness, frankly, around that.

在美國，我再說一次，品牌狀況是健康的。這主要與我們在返校季期間所採取的一項戰術性動作，以及我們在那段期間如何呈現有關。我們會說，我們的返校季行銷活動表現低於預期。更具體地說，我們的活動主軸都圍繞在寬鬆版型。寬鬆版型仍然是一項重要的業務。它對我們而言是很大的銷量驅動因素，但美國市場確實已轉向討論低腰。坦白說，低腰帶來了很高的熱度與競爭。

When we saw that softening sort of July and August, the good news is the team got after it very quickly, and we sharpened our focus. We have the benefit of the tariff refunds, as we remarked earlier. We’re reinvesting that back into demand generation, into marketing, and into the consumer. We pivoted into low, and so we’re able to do that quite quickly. We are already seeing the benefits.

當我們在7月與8月看到那種趨緩時，好消息是團隊很快就採取行動，並且我們聚焦得更精準。如同我們先前提到的，我們享有關稅退稅的好處。我們正把這些資金再投資回需求創造、行銷以及消費者端。我們轉向主打低腰，因此能夠相當快速地做到。我們已經開始看到效益。

So that started very tail end of Q3, but more importantly into Q4 into September. We’re seeing the results. To your question on what’s happening in the US, the US DTC is now back to positive.

因此這在第三季末段開始發生，但更重要的是在第四季、也就是9月延續發酵。我們正在看到成果。回到你問美國發生了什麼，美國DTC現在已回到正成長。

Overall DTC is tracking right now quarter to date mid-single digits. We expect it, let’s say, to be mid-single digits for the quarter, then to end the year in what we’ve been performing at, sort of that high single digit. We feel very good. It’s been a 360 approach across marketing, mid-funnel marketing, mid-funnel demand generation, in-store execution, et cetera. I feel that gives us the confidence to share these numbers that we’re talking about for the quarter ahead.

整體DTC目前以本季迄今來看，約為中個位數成長。我們預期本季大致會是中個位數，然後在年底回到我們一直以來的表現水準，也就是高個位數左右。我們感覺非常好。這是一個360度的作法，涵蓋行銷、中段漏斗行銷、中段漏斗需求創造、門市執行等等。我認為這讓我們有信心分享我們正在談的下一季這些數字。

I’d also say as it relates to the US consumer, the category is still strong, and we continue to gain market share with men and women, hold that number one position between men, women, and youth. I feel like we’ve addressed it.

我也想說，就美國消費者而言，這個品類仍然強勁，我們在男裝與女裝持續提升市占，並在男、女與青少年之間維持第一名的位置。我覺得我們已經回應到了。

Matthew Boss, JPMorgan.

Matthew Boss，摩根大通。

Michelle, maybe if we took a step back, can you speak to the health of the denim category? Has anything changed other than this intra-category trend change that you cited? Can you elaborate on September, maybe relative to that 4Q outlook for 4% organic revenue growth?

Michelle，也許我們退一步來看，你能談談丹寧品類的健康狀況嗎？除了你提到的品類內部趨勢轉變之外，還有任何變化嗎？你能否談談9月的情況，或許相對於第四季有機營收成長4%的展望？

And Harmit, just any operating margin considerations for next year for us to think about relative to the annual margin expansion algorithm that you would see at mid-single digit revenues?

另外Harmit，關於明年的營業利益率，有沒有什麼我們需要考量的點，特別是相對於在營收中個位數成長時，你們所提到的年度利益率擴張演算法？

Sure. Do you want to go first, then I --

好的。你要先說，然後我--

Yeah, I’ll start. Thanks for the question, Matt. I would say that the denim category remains healthy, robust, and it’s attractive, right? You see lots of companies, either if they’re in denim, being more assertive and competitive, or even in some cases, new entrants into the category.

好，我先開始。謝謝你的問題，Matt。我會說丹寧品類仍然健康、強韌，而且很有吸引力，對吧？你會看到很多公司，如果本來就在丹寧領域，會變得更積極、更具競爭性；甚至在某些情況下，也有新進者進入這個品類。

There’s a lot of energy in denim. I’d say as the category leader by a mile, this is good for us, but it also is we get to continue to lead. Lead with innovation, lead with fits, et cetera. From that standpoint, while I alluded to that in hindsight, we would’ve approached Q3 or back to school differently knowing what we know today, but we’ve learned, and importantly, when you learn, you pivot, you’re agile, and the team moved. We’re already seeing results. I’ll get to that in a minute.

丹寧領域有很多動能。我會說，作為遙遙領先的品類領導者，這對我們是好事，但同時也意味著我們必須持續領先。以創新領先、以版型領先等等。從這個角度來看，雖然我也提到，事後回看，如果以今天所知，我們在第三季或返校季的做法會不同，但我們已經學到經驗；而且重要的是，當你學到，你就要轉向、要敏捷，團隊也確實行動了。我們已經看到成果。我稍後會再談。

But as it relates to our relative position in men’s, and I’m speaking to the US now, number 1 continues in men’s, and we actually gained share and further widened our lead against the number 2 player.

但就我們在男裝的相對地位而言——我現在講的是美國——我們在男裝仍然是第1名，而且我們其實還提升了市占，並進一步拉大對第2名競爭者的領先差距。

In women’s, we’ve been solidly number 1. Again, strengthened our position there. Youth, even despite the level of competition, we’ve maintained our number 1 position. I think importantly, we have a segmented strategy. So we have Red Tab, we’ve got Signature, and then we’ve got Blue Tab, and we are gaining market share in that $100-plus segment. And as I mentioned on the call, our Blue Tab business, while small, is growing double digits, and we think that’s going to be a meaningful growth driver in the future.

在女裝方面，我們一直穩居第1名。同樣地，我們也強化了那裡的地位。青少年方面，即使競爭程度很高，我們仍維持第1名的位置。我認為重要的是，我們有一個分眾策略。因此我們有Red Tab、有Signature，然後還有Blue Tab，而且我們在100美元以上的價位帶正在提升市占。如同我在電話會議中提到的，我們的Blue Tab業務雖然規模不大，但正以雙位數成長，我們認為這將在未來成為一個重要的成長驅動因素。

The and of this is while leading in denim, category’s still growing, we are, as you know Matt, expanding beyond denim. And so our head-to-toe denim lifestyle strategy is working. Half of our growth, so of our 5% organic growth, half was driven by categories like tops outside of denim bottoms. Tops accelerated this quarter with a robust 7% growth.

此外，在丹寧領先的同時，品類仍在成長；而且如你所知，Matt，我們也正在擴展到丹寧以外。因此我們從頭到腳的丹寧生活風格策略正在奏效。我們成長的一半——也就是我們5%有機成長的一半——是由丹寧下身以外的品類所帶動，例如上衣。本季上衣加速成長，強勁地成長7%。

So I think all in, we’re feeling good about the category, but we’re very present to the fact that the competitive nature has intensified. Hence, really taking some of that tariff refund money and deploying it back into driving demand and marketing so that we can make sure that we can break through.

所以整體而言，我們對這個品類感覺良好，但我們也非常清楚競爭態勢已經加劇。因此，我們確實把部分關稅退稅的資金拿來重新投入，用於推動需求與行銷，確保我們能夠突破重圍。

And, Matt, to your question about the annual growth algorithm. We had a big discussion and debate around this, especially given that the tariff refunds are incorporated in the results, and that’s why we talked about the reported results and the underlying results.

另外，Matt，關於你問的年度成長演算法。我們對此進行了大量討論與辯論，特別是考量到關稅退稅已納入結果之中，這也是為什麼我們同時談到申報口徑的結果與剔除後的基礎結果。

Overall, our view is that the annual growth algorithm is intact, which is really a mid-single-digit growth company with growth in gross margins and growth in EBIT margins. So let me give you a little bit more color.

整體而言，我們的看法是年度成長演算法仍然成立，也就是一家營收中個位數成長的公司，同時毛利率成長、EBIT利潤率也成長。我再補充一些細節。

The organic revenue guidance for the year, we have taken up to the high end of our range, and that’s largely driven by wholesale being stronger. So wholesale, I think last quarter we said globally would be low to mid. We’re now saying mid-single digits.

就全年有機營收指引而言，我們已上調到區間高端，這主要是由批發業務更強所帶動。因此批發方面，我想上季我們說全球會是低到中個位數。我們現在說是中個位數。

And that is really, I think all of you have asked us, why don’t you grow wholesale? But this is the second year we’re growing wholesale globally, and it’s profitable. Asia, which was under-levered because it wasn’t growing and the margins were lower. Also, we have up to low double digits, and that helps operating margins.

而這其實是——我想你們各位一直問我們——為什麼你們不成長批發？但這是我們連續第二年在全球批發實現成長，而且是有利潤的。亞洲先前因為沒有成長、且利潤率較低而呈現槓桿不足。此外，我們也上調到低雙位數成長，這有助於營業利益率。

We end the year at about 12.1 EBIT margins all in, and which is 70 basis points versus a year ago. All of you do a great job dissecting what is tariff and what is not. Our view is all in 12.1, we will lap that going forward. So that’s a new base. So that’s how we are thinking about it. So, the way to think about it is we end the year on a reported number, we lap that for next year, and then build the annual algorithm on it.

我們全年結束時，整體EBIT利潤率約為12.1%，較去年提升70個基點。你們各位都很擅長拆解哪些是關稅因素、哪些不是。我們的看法是，整體12.1%這個水準，未來將成為可比較的基期（lap）。所以那是一個新的基準。這就是我們的思考方式。因此，理解方式是：我們以申報口徑的數字結束今年，明年在此基礎上進行同比比較，然後再在其上建立年度演算法。

Now, how are we going to lap it? There are expenses that we are undertaking to drive the future growth of the business that won’t repeat in 2027. If you do advertising, as an example, as a percentage of sale, it’ll be higher this year than the 7%, but we don’t have to spend at this pace next year.

那麼，我們要如何把它攤平（比較基期）呢？我們正在承擔一些費用，用來推動公司未來成長，而這些費用在 2027 年不會重複發生。舉例來說，如果你做廣告，以銷售額百分比來看，今年會高於 7%，但明年我們不需要以這樣的速度投入。

As an example, distribution we have talked about. We are making the strategic transformation, but it was a little expensive because we’re running two parallel distribution centers. It won’t be at that pace next year. That’s where our view is that we can continue to grow margins and obviously top line.

再舉一個例子，我們談過的配送（distribution）。我們正在進行策略性轉型，但成本有點高，因為我們同時在運作兩個平行的配送中心。明年不會以這樣的速度發生。這也是我們認為可以持續提升毛利率，當然也能帶動營收（top line）成長的原因。

Hope that helps you, Matthew.

希望這能對你有幫助，Matthew。

Jay Sole, UBS.

UBS 的 Jay Sole。

Great, thank you so much. I want to follow up on the last question. You gave us great color on the DTC channel trends for the US and Europe, but does the wholesale business sell-through trend in the US and Europe look like the DTC trend?

太好了，非常感謝。我想延續上一個問題追問一下。你們對美國與歐洲 DTC 通路趨勢提供了很好的補充說明，但美國與歐洲的批發（wholesale）業務終端銷售（sell-through）趨勢，看起來是否也像 DTC 的趨勢一樣？

Harmit, I think you mentioned that the European pre-books for next spring are up high single digits. If you could just give us a little bit of context for how the sell-through is running in wholesale in the US and EU, and how that’s impacting the order books in next year, that would be helpful.

Harmit，我想你提到歐洲明年春季的預訂（pre-books）成長為高個位數。如果你能提供一些背景，說明美國與歐盟批發通路的 sell-through 目前表現如何，以及這如何影響明年的訂單簿（order books），那會很有幫助。

Sure, Jay. I was wondering if you or somebody else would ask a question on wholesale. As I mentioned, channel has done globally, performed really well. It’s what I call the power of the and. It’s DTC and wholesale, which is important. Wholesale does ebb and flow every quarter, largely because you sell in, you sell floors, timing is different by customer.

當然可以，Jay。我一直在想你或其他人會不會問到批發的問題。如我提到的，通路在全球的表現非常好。我稱之為「and 的力量」。也就是 DTC 加上批發，兩者都很重要。批發每一季都會有起伏，主要是因為你有出貨（sell in）、你有鋪貨（sell floors），不同客戶的時點也不同。

But overall, wholesale has been performing well globally, including in the US. It’s profitable, which is really good, and it’s across all categories. I mean, women’s is performing well, men’s is performing well. AURs are up and so is units. So overall, we are pleased with the performance. I mean, looking ahead, and your specific question, Jay, on sell-through. The sell-through is fairly good. We’re seeing good sell-through trends. It’s healthy. The pre-books are strong. We get data on pre-books in Europe, so we reflected that.

但整體而言，批發在全球表現良好，包括在美國。它是有利潤的，這點非常好，而且涵蓋所有品類。我的意思是，女裝表現很好，男裝也表現很好。平均單價（AUR）上升，銷量（units）也上升。所以整體來說，我們對表現感到滿意。再往前看，回到你具體的問題，Jay，關於 sell-through。sell-through 相當不錯。我們看到良好的 sell-through 趨勢。狀況健康。預訂（pre-books）很強。我們在歐洲能取得 pre-books 的數據，所以我們已把這點反映出來。

I think quarter over quarter, especially in the US, it’s the ebb and flow. So wholesale in quarter four will be a little weaker than the wholesale you saw in quarter three in terms of growth year over year, but it is not because of weakening demand. Let me just assure you. When flow sets are set when product goes to the customer. But generally speaking, we are seeing a healthy demand from our retailers across the world.

我認為就季對季而言，尤其在美國，這就是起伏的表現。因此第四季批發在年增成長上會比你在第三季看到的批發稍弱一些，但這不是因為需求轉弱。我想向你保證這一點。出貨節奏（flow sets）取決於產品何時送到客戶端。但總體來說，我們看到全球零售商對我們的需求是健康的。

Dana Telsey, Telsey Advisory Group.

Telsey Advisory Group 的 Dana Telsey。

Hi, good afternoon. Harmit, best of luck in your next chapter. Michelle, I think you mentioned some events in back to school not impactful enough. What is your assessment, and what is changing for holiday? Is it the marketing? Anything with product? You mentioned low-rise, and also you mentioned that the competitive environment intensified in price. Did it intensify in price and style, or what are you seeing in the competitive environment?

嗨，午安。Harmit，祝你下一段旅程一切順利。Michelle，我想你提到返校季的一些活動影響力不夠。你的評估是什麼？到了假期季（holiday）會有哪些改變？是行銷嗎？產品方面有什麼調整嗎？你提到低腰（low-rise），也提到競爭環境在價格上加劇。這種加劇是發生在價格與款式上，還是你在競爭環境中看到了什麼？

And lastly, as you look out to 2027, I think last year was the year of music. This year was the year of sport. How do you think of next year in terms of topical?

最後，當你們展望 2027 年，我想去年是音樂之年。今年是運動之年。你們如何看待明年在主題（topical）上的定位？

Yes. All very good questions, Dana. Thank you for that. Yeah, so let me add just a little bit more. I will tell you, the teams here, as we saw the issues unfolding, they were all over it. I would say just both here in the US and globally, the consumer moves fast, so we have got to just continue to be on top of it. By and large, we are. I would say, but there are going to be moments like this, if you are not quite there with the consumer, then you have an opportunity to react. That is frankly, the benefit of also getting all this data real time in your own channels, so that you can impact not only DTC, more broadly.

是的。Dana，這些都是非常好的問題。謝謝你。我再補充一點。我可以告訴你，當我們看到問題逐步浮現時，這裡的團隊立刻全力投入處理。我會說，不論在美國或全球，消費者變化很快，所以我們必須持續掌握動態。整體而言，我們做到了。但也會出現像這樣的時刻：如果你沒有完全跟上消費者，你就有機會做出反應。坦白說，這也是在自有通路即時取得所有數據的好處，讓你不只影響 DTC，也能更廣泛地影響整體。

But as I have been talking about, as we took a step back, we felt like our campaign in this period of time was not as impactful as it could have been. You see that in the numbers. Our traffic was soft, so rather than continue to go that same direction, we pivoted. Our diagnostics would say that at a time when, hey, the loose business, and to be clear, it is still a very big business and it is growing, but there was just a lot of energy and excitement, whether that was online, offline, around the rise getting lower.

但如我一直在談的，當我們退一步檢視時，我們覺得在這段期間的行銷活動（campaign）影響力沒有達到它本可以有的程度。你可以從數字上看到。我們的來客數（traffic）偏弱，所以我們沒有繼續沿著同一方向走，而是做了轉向（pivot）。我們的診斷顯示，在那個時間點，嘿，寬鬆版型（loose）業務——先說清楚，它仍然是非常大的業務而且在成長——但市場上有很多能量與興奮點，不論線上或線下，都圍繞著腰線變得更低（rise getting lower）。

We have plenty of it just was not our leading message. So when the team understood that, they then quickly moved to pivot into low-rise. What that meant in practice was reshooting the campaign, getting that in stores, remerchandising the store. We have a whole group of content creators in social media. We have let them loose. All of that is happening as we speak. We really put this in place right as we started September. That was for women.

我們有很多相關產品，只是它不是我們主打的訊息。所以當團隊理解到這點後，就迅速轉向主打低腰（low-rise）。實務上這代表重新拍攝行銷活動素材、把內容上到門市、重新做門市陳列與商品配置（remerchandising）。我們在社群媒體上有一整組內容創作者。我們讓他們放手去做。這些都正在進行中。我們大概是在 9 月一開始就把這些措施落地。這部分是針對女裝。

And then for men, and men has been a pretty steady performer, but also took the opportunity, it is a big business for us, to also re-energize the men’s business, and we did that around our icons. 501, one of the top sellers right now is 501 Loose, so that baggy for men idea. One of our influencers that also has worked well for us in the US has been Shaboozey, who his star power has only grown over the last year.

接著是男裝。男裝一直是相當穩定的表現者，但我們也把握機會——這對我們來說是很大的業務——重新為男裝注入動能，而我們是圍繞我們的經典款（icons）來做。501；目前最暢銷之一是 501 Loose，也就是男裝寬鬆、偏鬆垮（baggy）的概念。另外，一位在美國也為我們帶來良好成效的影響者是 Shaboozey，而他在過去一年的人氣只增不減。

We are leaning into a Shaboozey partnership with men. We are really going after this low-rise through digital, social, in-store, demand generation, like I mentioned, and then chased more product. So leveraging our supply chain to make sure we have the inventory.

我們正加大與 Shaboozey 在男裝上的合作。如我提到的，我們正透過數位、社群、門市、需求創造（demand generation）等方式，全力推動低腰（low-rise），並且追加更多產品。也就是運用我們的供應鏈，確保我們有足夠庫存（inventory）。

As I said, the indications are good. The US trends in DTC quarter to date are positive. DTC globally overall is running mid-single digit, and we expect that to at least carry into the full quarter, be mid-single digit around the world. Similarly, in Europe. Europe is back to mid-single digit given its pivot out of this very warm weather.

如我所說，目前的跡象是正面的。美國 DTC 本季截至目前（quarter to date）的趨勢是正向的。全球 DTC 整體目前約為中個位數成長（mid-single digit），我們預期至少會延續到整個季度，在全球維持中個位數。歐洲也是如此。歐洲在擺脫這段非常炎熱的天氣後，也回到中個位數成長。

And then to your point on holiday, really excited about what is ahead. Being a DTC player now, it will feel very holiday. We will lean into the classic denim innovation, but we are also going to take a big position in tops, in sweaters. We have a lot of innovation coming, fantastic store merchandising, some really innovative creative that you will see soon. Our intent is to win the holiday, and I am confident we will.

然後回到你提到的假期檔期，我們對接下來的發展真的非常興奮。現在作為一家DTC（直面消費者）玩家，整體感受會非常有節慶氛圍。我們會加碼經典丹寧創新，但同時也會在上衣、毛衣品類上大舉布局。我們有很多創新即將推出、很棒的門店陳列，以及一些你很快就會看到的、非常創新的創意內容。我們的目標是贏下假期檔期，我也有信心我們做得到。

And then, you asked about what does this mean going forward? We are upping our marketing game. Again, the tariff refunds allow us to redeploy right into investing in the consumer and telling our story. We expect that to be a tailwind as we start the next year.

然後，你問到這對未來意味著什麼？我們正在提升我們的行銷力道。同樣地，關稅退稅讓我們能把資源直接重新部署到消費者投資與品牌故事傳達上。我們預期，當我們邁入下一年度時，這會成為一股順風。

And then specifically, what is the big idea for next year? I am not at liberty to share that with you yet, but I would say we are taking all of our learnings over the last two years to make sure that we are showing up in an innovative and compelling way for our fans around the world.

然後更具體地說，明年的大構想是什麼？我目前還不方便對外分享，但我想說的是，我們正在把過去兩年的所有學習整合起來，確保能以創新且具吸引力的方式，面向全球各地的粉絲呈現。

Rick Patel, Raymond James.

Rick Patel，Raymond James。

Thank you. Good afternoon, and Harmit, congrats on a remarkable career as well.

謝謝。下午好，Harmit，也恭喜你擁有一段非常卓越的職涯。

Thank you.

謝謝。

I have a follow-up on the earlier margin question. You are redeploying tariff refunds into marketing, supply chain, and sharper value for the consumers. Is it safe to assume these factors are not limited to the back half of this year and they will continue through the first half of next year as well? I appreciate your long-term algos for mid-single digit revenue growth, but if these investments do continue, what is the minimum growth that you would need to see in order to achieve operating leverage going forward?

我想追問先前關於毛利率的問題。你們把關稅退稅重新投入到行銷、供應鏈，以及為消費者提供更清晰的價值主張。是否可以合理假設，這些因素不僅限於今年下半年，明年上半年也會持續？我理解你們長期的模型是中個位數營收成長，但如果這些投資確實持續，那麼未來要達成營運槓桿，你們至少需要看到多少的成長幅度？

Yeah, Rick, obviously this is not about guiding next year. I am going to leave that to Michelle and John and the team. Our view is the tariff refunds were timely. The business, as Michelle mentioned, soft, especially on DTC and women’s, and we acted with agility and speed, and utilized that largely against driving more focused marketing with a real product awareness, accelerate our product off, especially things that are working, and promotional.

是的，Rick，顯然這不是在對明年提供指引。我會把這部分留給Michelle、John以及團隊。我們的看法是，關稅退稅來得很及時。如Michelle提到的，業務表現偏軟，特別是在DTC與女裝，我們以敏捷與速度採取行動，並把這筆資源主要用在：推動更聚焦的行銷、強化產品認知；加速產品推進，特別是那些表現良好的品項；以及促銷。

We did not take prices down. Some retailers have. We took it up. That is not something we decided to do because we do provide good price value, but we said let us promote because market got a little promotional, especially during holiday events. Let us promote so we are competitive. Our view is it is not something that the incremental expenses do not sustain into 2027. Our view is a mid-single digit growth does allow us to leverage to the P&L, and you will see that flow through to EBIT.

我們沒有降價。有些零售商有。我們反而提價。這不是因為我們覺得自身的價格價值不夠——我們提供的是很好的性價比——而是我們說，既然市場變得更促銷，特別是在假期活動期間，那我們就做促銷，確保具備競爭力。我們的看法是，這些增量費用不會一路延續到2027年。我們認為，中個位數成長足以讓我們在損益表上產生槓桿效應，你也會看到這反映到EBIT上。

We are not running away, and Michelle is completely supportive of this and so is the executive team. We do want to get to 15% operating margins. If you take the last three or four years, in 2023, I think our operating margins were 9%, we will end this year over 12%. We are on that path and that journey.

我們並不是在逃避，Michelle對此完全支持，管理團隊也是。我們確實希望達到15%的營業利益率。如果你看過去三到四年，2023年我記得我們的營業利益率是9%，今年我們會以超過12%作結。我們正走在這條路徑與旅程上。

I hope that answers your question. I cannot be more specific, Rick, unfortunately, because we have not yet completed our financial plan, and John and Michelle would be the best to lay it out for you next year, early next year.

希望這回答了你的問題。很遺憾我無法更具體，Rick，因為我們尚未完成財務計畫；John和Michelle會是明年、明年初最適合為你詳細說明的人。

Bob Drbul, BTIG.

Bob Drbul，BTIG。

Hi. Excuse me. Good afternoon. Harmit, 56 quarters, huh? That’s a lot of quarters.

嗨。不好意思。下午好。Harmit，56個季度，是吧？那可是很多個季度。

I’m not going to ask you, Bob, how many quarters you’ve covered, but as a CFO, thank you for that.

Bob，我不會問你你追蹤了多少個季度，但作為CFO，謝謝你。

You’re welcome. Thanks. I guess the first question really for Michelle is, when you think about Blue Tab, I think double-digit growth, what have been your learnings thus far with that initiative? I guess similarly, when you think about the brand heat, I would be interested in hearing any of the successes you’ve had with collabs and what we should be looking for in the next few months in this holiday season around collabs that you’re really excited about. Thanks.

不客氣。謝謝。我想第一個問題主要是給Michelle：當你看Blue Tab，我想是雙位數成長，你們到目前為止從這個計畫中學到了什麼？同樣地，談到品牌熱度（brand heat），我也想聽聽你們在聯名合作（collabs）上有哪些成功案例，以及在接下來幾個月、這個假期檔期，你們有哪些讓你特別興奮、值得我們關注的聯名合作？謝謝。

Yeah, you bet. Thanks, Bob. No, thanks for asking about Blue Tab. It’s something we all have a lot of passion and belief for, that this could be a real opportunity for us. As the denim leader, we have less than a 1% market share of the super premium jean category, and that should at least be commensurate with our market share overall. So you can do the math and see the opportunity.

好的，當然。謝謝你，Bob。也謝謝你問到Blue Tab。這是我們所有人都非常有熱情、也深信不疑的事情，我們認為這對我們可能是一個真正的機會。作為丹寧領導者，我們在超高端牛仔褲（super premium jean）品類的市占率不到1%，而這至少應該與我們整體市占率相當。所以你可以自己算一算，就能看到其中的機會。

Because we have this leadership, we do have all of this innovation and knowledge about denim and the best denim. So for Blue Tab, I’d say the learnings, number one is, it is always anchored, of course, in denim authority and denim leadership. So when we use denim in our Blue Tab, it’ll be that amazing Japanese selvedge denim.

因為我們具備這樣的領導地位，我們確實擁有關於丹寧與頂級丹寧的大量創新與知識。所以對Blue Tab來說，我會說第一個學習是：它永遠以丹寧權威與丹寧領導力為核心。因此當我們在Blue Tab使用丹寧時，會是那種令人驚豔的日本赤耳丹寧（Japanese selvedge denim）。

I think the insight we have today versus when we’ve sold in the past, like denim bottoms of Japanese denim, is that this Blue Tab is this can be an entire category, head to toe, not unlike what we’re doing for Red Tab. We can use the beautiful Japanese denim in bottoms, in jackets, in dresses, in skirts. If you actually see online, you’ll see representation of all of those products.

我認為我們現在相較於過去（例如以前賣過日本丹寧的下身單品）更重要的洞察是：Blue Tab可以成為一個完整的品類，從頭到腳的全套造型呈現，這點不亞於我們在Red Tab所做的事。我們可以把漂亮的日本丹寧用在下身、外套、洋裝、裙子上。如果你到線上看，你會看到這些產品都有呈現。

But we can also extend into tops categories, but they need to look/feel different than our core Red Tab. I think I said in my remarks that we’re getting into really elevated fabrics like cashmere, like silk, very premium blazers, denim trousers. You can imagine this whole lifestyle presentation.

但我們也可以延伸到上衣品類，不過它們需要在外觀/觸感上與我們核心的Red Tab有所區隔。我想我在致詞中提到，我們正在採用更高階的面料，例如羊絨、絲綢，以及非常高端的西裝外套、丹寧長褲。你可以想像這是一整套生活風格（lifestyle）的呈現。

It’s going to be a big opportunity for us. It’s one of our biggest insights is that and we’re still work in process is how to merchandise it in the store. You can see a mixed approach in our stores today of some outstanding merchandising, Harajuku in Japan as an example, to where we’re still experimenting. We will figure this out because it’s such an incredible opportunity with price points ranging from $200 to $500.

這會是我們的一個巨大機會。我們最大的洞察之一——而且我們仍在進行中——是如何在門店裡做商品陳列與呈現。你今天在我們的門店會看到一種混合式做法：有些店的陳列非常出色，例如日本原宿（Harajuku）的店；也有些地方我們仍在實驗。我們會把它摸索清楚，因為這是一個非常驚人的機會，價格帶從200美元到500美元不等。

As it relates to collaborations, also a great way to elevate the brand. Right now, we just launched the Sacai collaboration. You can actually see it on our site, although it’s selling quickly. That’s a great example of us connecting with the highest levels of couture type of thing.

至於聯名合作，這也是提升品牌層級的好方法。目前我們剛推出Sacai的聯名合作。你其實可以在我們網站上看到，雖然賣得很快。這就是我們與最高層級、偏高級訂製（couture）那種領域建立連結的一個很好的例子。

We have a few more in the pipeline that we have not talked about yet, but I think what you can expect from us and a recipe that has worked is a real balance between what I’d call more commercially-oriented collabs to ones that have this very high-end Sacai. We did Valentino a couple of years ago, Miu Miu a few years ago, sort of that. The good news is, given the brand heat today, people are knocking on our doors.

我們還有幾個正在推進中的項目，之前尚未對外談到，但我認為你們可以期待的是，我們一個行之有效的做法，是在我所稱較偏商業導向的合作款，與這種非常高端的 Sacai 合作之間，取得真正的平衡。我們在幾年前做過 Valentino，也在幾年前做過 Miu Miu，類似這樣。好消息是，以目前品牌熱度來看，很多人都主動上門找我們合作。

We’ve already got the pipeline and the calendar for next year, I would say. There’s some really good ones in there, so you’ll be hearing about that. I actually just got the Sacai jacket myself yesterday. It is selling out, so for those who are interested, you better get after it.

我會說，我們其實已經把明年的合作管線和行事曆都排好了。裡面有一些非常不錯的項目，所以你們之後會聽到相關消息。我昨天自己也剛拿到那件 Sacai 外套。它賣得很快、正在售罄中，所以有興趣的人最好趕快入手。

And then I think the other piece on brand heat, one of our real exciting moments that’s happening today is happening in Asia. We did a global campaign with Rosé, launched at the Super Bowl. She was part of our Behind Every Original. That has now manifested as a partnership in Asia, a collaboration.

另外我想談到品牌熱度的另一塊，我們今天正在發生的一個非常令人興奮的時刻，是在亞洲發生的。我們與 Rosé 做了一個全球行銷活動，並在超級盃推出。她是我們 Behind Every Original 活動的一部分。這現在已在亞洲具體落地為一個合作夥伴關係、一項聯名合作。

We’re doing pop-ups. When you see these pop-ups happening, there are literally thousands of people in line to see ROSÉ. It has been a tailwind to how we’re getting the overall results of, like I said, Asia overall 10%, China up 13%, and our women’s business in Asia is even higher than that, all driven by this Rosé momentum. Stay tuned. Lots to come.

我們正在做快閃店。當你看到這些快閃店活動時，現場真的有成千上萬的人排隊只為了見到 ROSÉ。這也成為推動我們整體成果的順風因素：如我所說，亞洲整體成長 10%、中國成長 13%，而我們在亞洲的女裝業務成長甚至更高，這些都由 Rosé 的動能所帶動。敬請期待。後面還有很多內容。

Kendall Toscano, Bank of America.

Kendall Toscano，美國銀行。

Hi. Thanks for taking my question. Harmit, congrats on the retirement.

嗨。謝謝讓我提問。Harmit，恭喜退休。

Thank you.

謝謝你。

Just wanted to ask about the. You talked about greater than expected complexity in the US distribution network transition in the US and just curious, how should we think about this in light of what was supposed to be an immediate $5 million in cost savings per quarter as soon as you shut these parallel DCs down in Q4? It sounds like we now shouldn’t expect to see any benefits until 2027, but any visibility on when in 2027 and what besides the fire that you called out has been more challenging than you anticipated?

我想問一下關於……你提到美國配送網路轉換（US distribution network transition）在美國出現了超出預期的複雜性，我想了解的是：在原本預期於第四季關閉這些平行配送中心（parallel DCs）後，就能立刻每季節省 500 萬美元成本的前提下，我們應該如何看待目前的狀況？聽起來我們現在可能要到 2027 年才看得到任何效益，但能否提供一些能見度：2027 年的什麼時點，以及除了你提到的火災之外，還有哪些部分比你們原先預期更具挑戰？

Sure, Kendall, I can take this one. I’ll first say that we are disappointed more than anyone that this transition has taken as long as it has, and it’s been more complex. As we’ve ramped this up with our partner, we do have a complex business given the number of SKUs we have, the number of channels, the number of customers. We will get there, it’s just taking more time.

當然，Kendall，這題我來回答。我先說，我們比任何人都更失望，這次轉換花了這麼久時間，而且確實更複雜。隨著我們與合作夥伴逐步拉升（ramp up）運作，我們的業務本來就很複雜，因為我們有大量 SKU、很多通路、很多客戶。我們會達成目標，只是需要更多時間。

We did mention the fire that happened towards the end of the quarter, which just was a big disruption in some of our most important weeks. It was what it was. The team recovered fine. So, I guess we’re just being patient and realistic in terms of when we will see the benefits.

我們也提到在季度末發生的火災，這在我們一些最重要的幾週造成了很大的干擾。事情就是那樣。團隊後續恢復得很好。所以我想，我們只是以耐心且務實的態度來看待何時能看到效益。

I do think a very important milestone that we achieved was closing our parallel Hebron facility. We close at the end of Q3. With this behind us, we truly can begin to see the benefits in 2027 because we will not have that running.

我確實認為我們達成的一個非常重要的里程碑，是關閉了我們平行的 Hebron 設施。我們在第三季末關閉。在這件事完成之後，我們確實可以在 2027 年開始看到效益，因為我們不再需要讓那個設施持續運作。

As it relates to Q4, I’d say, as Harmit was speaking to earlier, the good news is we do have a lot of demand from both channels. So we need to make sure that Groveport is set up to fulfill the demand. That’s why we’re making some investments along with our partner to ensure that we get the productivity, we get the service levels, we get the inventory right, and then over time, get that cost efficiency.

至於第四季，我會說，如同 Harmit 先前提到的，好消息是我們在兩個通路端都有很強的需求。因此我們需要確保 Groveport 已準備好能夠履行（fulfill）這些需求。這也是為什麼我們會與合作夥伴一起進行一些投資，以確保我們能提升生產力、達到服務水準、把庫存配置到位，然後隨著時間推進，取得成本效率。

So, we believe, we’re confident we will begin to see that in 2027. We’re not guiding 2027. We’ll talk about that more. But we believe that 2026, let’s call it the peak of what has been our transition-related cost, relative to this.

因此我們相信、也有信心在 2027 年開始看到這些成果。我們目前不對 2027 年提供財測指引。我們之後會再多談一些。但我們認為 2026 年——可以說是與這項轉換相關成本的高峰期。

The last thing I would leave you on is that, the proof point for us is we did complete a complex transition in Europe, and that took some time. That’s now behind us. You are seeing the EBIT performance and benefits of that.

最後我想補充的是，對我們而言的一個佐證是：我們確實在歐洲完成了一次複雜的轉換，而那也花了一些時間。現在那已經過去了。你們也看到了由此帶來的 EBIT 表現與效益。

So that does give us confidence that we will get behind this. I think 2027 is very reasonable and realistic to start seeing the benefits. Like I said, closing that Hebron facility was an important milestone to say we have the confidence that Groveport will fulfill our needs. Now we’re working through the operational complexities there.

所以這也讓我們有信心，我們會把這段過渡期走完。我認為 2027 年開始看到效益是非常合理且務實的。如我所說，關閉 Hebron 設施是一個重要里程碑，代表我們有信心 Groveport 能滿足我們的需求。現在我們正在處理那裡的營運複雜性。

Ike Boruchow, Wells Fargo.

Ike Boruchow，富國銀行。

Hey. Good afternoon, everyone. Harmit, best of luck. We’ll miss you. Been a pleasure working with you. I will ask just two questions. On the Q4 guide relative to three months ago, is there any change on the revenue guide? It looks like it is a little lower than the implied before, but I just want to sanity check that to you guys.

嘿。各位下午好。Harmit，祝你一切順利。我們會想念你。很高興能與你共事。我問兩個問題。關於第四季指引相較三個月前，營收指引有沒有任何變化？看起來比之前隱含的水準略低一些，但我只是想跟你們確認一下。

And then on the reinvestment of the refund on gross margin, Harmit, can you just be a little bit more specific? What exactly are you guys doing, and why is that not a drag that we need to think about that potentially kind of lingers into Q4 or the first half of next year? Just more the mechanics there.

另外，關於把關稅退款（refund）再投入、對毛利率的影響，Harmit，你能否再具體一點？你們到底在做什麼？以及為什麼這不會成為我們需要考量的拖累，可能延續到第四季或明年上半年？我想更了解其中的運作機制。

Yeah. I think, Ike, on the revenue, it is a little lower than the implied guide for Q4 because we guide the following quarter and the full year. It is largely driven by foreign exchange. So reported, I think consensus is about 4.1, and this implies, I think we are saying 3. Foreign exchange is 100 basis point drag from that perspective. That is your question on revenue.

好的。Ike，關於營收，第四季確實比先前隱含的指引略低，因為我們會提供下一季以及全年指引。主要是由外匯所驅動。所以以報表口徑來看，我認為市場共識大約是 4.1，而這裡隱含的是——我想我們說的是 3。從這個角度看，外匯帶來約 100 個基點的拖累。這就是你關於營收的問題。

The question on what are we doing in gross margins, we are doing a couple of things. We could have taken pricing down. We could have. That was just one of the levers when the tariffs happened. It was not the only lever in the US. We had a couple of other pieces, but as I said earlier, we looked at the price value, and I think our current price has sustained that long term.

至於毛利率方面我們在做什麼，我們做了幾件事。我們本來可以把定價調降。我們確實可以。當關稅發生時，那只是其中一個可用的槓桿。在美國那邊並不是唯一的槓桿。我們還有其他幾個作法，但如我先前所說，我們評估了價格與價值（price value），我認為我們目前的價格在長期來看是能夠維持的。

Given the environment is a little bit more promotional at this stage, we are really targeting promotions on key holiday moments. That is how we are thinking about it. Think Labor Day, with Thanksgiving coming up, with holiday, that is where we are thinking about it.

鑑於目前的環境在這個階段稍微更偏促銷，我們確實把促銷重點放在幾個關鍵的假期時點。這就是我們的思考方式。例如勞動節、接著是感恩節、以及年末假期，這些就是我們著力的時點。

To your point about why shouldn’t this last. Also, I think Michelle said we did not have the right offer in the quarter, so we had to do this. Given the fact that we strongly believe that working with our product teams and the marketing team, that we do have a great offer for holiday. Michelle talked about sweaters and the like, and you will see that in our stores.

回到你提到的「為什麼這不應該持續」這一點。另外，我想 Michelle 也提到，我們在本季度沒有合適的方案，所以必須這麼做。基於我們堅信，透過與產品團隊及行銷團隊合作，我們確實為假期季準備了很好的方案。Michelle 提到毛衣等品類，你們會在我們的門市看到。

I think that coupled with our execution, we believe, the promotional aspect of our offers will probably not sustain itself. I think Matt asked the question about gross margin. We feel good at this time, continuing to grow gross margins, in 2027.

我認為再加上我們的執行力，我們相信，我們方案中的促銷成分大概不會長期維持。我想 Matt 問到了毛利率的問題。就目前而言，我們對於在 2027 年持續提升毛利率感到樂觀。

Brooke Roach, Goldman Sachs.

Brooke Roach，高盛。

Harmit, you mentioned three areas of reinvestment of the tariff refund, supply chain marketing, and sharper value on promotions. Can you quantify the proportion of investment that you’re putting towards each bucket, and if any of these investments will lead to payoffs in the business in 2027 beyond, versus the investments that are just driving immediate impacts to your business?

Harmit，你提到把關稅退款再投資在三個領域：供應鏈、行銷，以及在促銷上提供更明確的價值。你能否量化一下，你在每個籃子上投入的比例？另外，這些投資中是否有任何一項會在 2027 年及之後為業務帶來回報，而不是僅僅推動對當期業務的立即影響？

Then maybe a follow-up for Michelle. Given the enhanced marketing as a percent of sales this year, how are you thinking philosophically about the opportunity to potentially reinvest at a higher marketing spend rate over the next several years, similar to what we’ve seen other companies do in the branded space?

接著可能有個追問給 Michelle。鑑於今年行銷費用占銷售額的比例提高，你在理念上如何看待未來幾年可能以更高的行銷支出率再投資的機會——類似我們在其他品牌型公司看到的做法？

To answer your question, Brooke, the simplistic way, let’s say we deployed $60 million out of the $80 million-odd from tariffs that we received. I would say 1/3 is marketing, 1/3 is distribution and logistics, and 1/3 is promotional activities. A little bit, we did clear some inventory just to make sure we’re clean, and we have inventory for the holiday. That’s the simplest way of looking at it.

Brooke，回答你的問題，用最簡單的方式來說，假設我們從收到的約 8,000 萬美元關稅款中動用了 6,000 萬美元。我會說三分之一用於行銷，三分之一用於配送與物流，三分之一用於促銷活動。另外我們也稍微清了一些庫存，確保庫存結構乾淨，並且為假期季備好庫存。這是最簡單的看法。

In Q3, the majority was promotions, a little bit of advertising, a little bit of inventory clearance. In Q4 is largely advertising, marketing, distribution, and slight promotions. Now, to Ike’s question, the promotional activities we ramped up in Q3 are going to be ramped down in Q4, largely because we’ve got better product and we’ve got better marketing.

在第三季，大部分是促銷，少部分是廣告，還有少量的庫存清理。第四季則主要是廣告、行銷、配送，以及少量促銷。另外，回到 Ike 的問題，我們在第三季加碼的促銷活動會在第四季下調，主要是因為我們有更好的產品，也有更好的行銷。

Does that answer your question, Brooke?

Brooke，這樣有回答到你的問題嗎？

Brooke, I can take part two. I think your question is, to me, how should we think about our bridge between, say, Harmit mentioned it earlier, we are at 9% in 2023. We have just guided around 12%, and we are still committed to the 15%.

Brooke，第二部分我來回答。我理解你的問題是：我們應該如何看待我們的「橋接」——例如 Harmit 先前提到，我們在 2023 年是 9%。我們剛剛給出的指引大約是 12%，而我們仍然承諾要達到 15%。

Our line of sight there is that we see opportunity in driving store four-wall profitability. We see leverage opportunity based on the volume, how we think about corporate expense and the like. We do see an opportunity for D&L improving over time. We did not see it this year. We think it is the peak.

我們對此的可見度在於：我們看到提升單店四面牆獲利能力的機會。我們也看到基於銷量帶來的槓桿機會，以及我們如何看待公司費用等。我們確實看到配送與物流（D&L）隨時間改善的機會。今年我們沒有看到。我們認為今年是高峰。

All of those things and a few more, we see as gross margin, another one. We expect to continue to elevate the brand and get gross margin gains. Those will all be tailwinds between now and put a date out there to get 15%.

所有這些因素以及其他幾項，我們也把毛利率視為其中之一。我們預期會持續提升品牌並取得毛利率的增益。這些都將成為從現在到我們設定某個時間點達到 15% 的順風因素。

Along the way, from a marketing standpoint, our intent is, over time, to invest more in the brand. Now we are at roughly 7%, a little bit more than that. I am not going to put a precise number, but if we continue to get good returns on marketing, we will find a way to fund that.

在這個過程中，從行銷的角度來看，我們的意圖是隨時間增加對品牌的投資。目前我們大約在 7%，略高於此。我不會給出精確數字，但如果我們持續在行銷上獲得良好回報，我們會想辦法為此提供資金。

That is how we are thinking about it, in the context of our commitment to all of you to get to that 15% EBIT. We will be obviously on our next call talking about how we are thinking about 2027 in that context. I would say stay tuned.

這就是我們在思考的方式，放在我們對各位承諾要達到 15% EBIT 的脈絡下。當然，我們在下一次電話會議上會談到我們在這個脈絡下如何看待 2027 年。我會說，敬請期待。

I think that was the last question. Thank you, everyone, for listening. I guess I am going to make just one reiteration that as we think about our business heading into the fourth quarter, we have said it already, the trends are positive. DTC is running at at least a mid-single-digit rate. We feel confident for the balance of the year, and want to wish everyone a great holiday, and we will see you in January. Thank you.

我想這是最後一個問題了。感謝各位收聽。我想再重申一次：當我們展望第四季業務時，我們已經說過了，趨勢是正向的。DTC 目前至少以中個位數的速度在成長。我們對今年剩餘期間充滿信心，也祝大家假期愉快，我們一月見。謝謝。

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

今天的電話會議到此結束。感謝各位的參與。請各位此時掛斷電話線。