Olaplex Holdings Inc (OLPX) 2022 Q4 法說會逐字稿

Greetings, and welcome to the Olaplex Holdings, Inc. Fourth Quarter and Fiscal Year 2022 Earnings Results Conference Call. (Operator Instructions)

您好，歡迎來到 Olaplex Holdings, Inc. 第四季度和 2022 財年收益結果電話會議。 （操作員說明）

As a reminder, this conference is being recorded.

提醒一下，這次會議正在錄製中。

I would now like to turn the call over to Patrick Flaherty, Vice President of Investor Relations. Thank you. You may begin.

我現在想把電話轉給投資者關係副總裁帕特里克弗萊厄蒂。謝謝。你可以開始了。

Thank you, and good morning. Joining me today are JuE Wong, President and Chief Executive Officer; and Eric Tiziani, Chief Financial Officer.

謝謝，早上好。今天加入我的是總裁兼首席執行官 JuE Wong；和首席財務官 Eric Tiziani。

Before we start, I'd like to remind you that management will make certain statements today, which are forward-looking, including statements about the outlook of business and other matters referenced in the company's earnings release issued today. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in or implied by such statements.

在我們開始之前，我想提醒您，管理層今天將發表某些前瞻性聲明，包括有關業務前景的聲明以及公司今天發布的收益報告中提及的其他事項。每份前瞻性陳述都存在風險和不確定性，這些風險和不確定性可能導致實際結果與此類陳述中預測或暗示的結果存在重大差異。

Additional information regarding these factors appears under the heading cautionary note regarding forward-looking statements in the company's earnings release and in the filings the company makes with the Securities and Exchange Commission that are available at www.sec.gov, and on the Investor Relations section of the company's website at ir.olaplex.com. The forward-looking statements on this call speak only as of the original date of this call, and we undertake no obligation to update or revise any of these statements.

有關這些因素的更多信息出現在關於公司收益發布中前瞻性陳述的警告性說明標題下，以及公司向美國證券交易委員會提交的文件中，這些文件可在 www.sec.gov 和投資者關係部分獲得公司網站 ir.olaplex.com。本次電話會議的前瞻性陳述僅在本次電話會議的原始日期發表，我們不承擔更新或修改任何這些陳述的義務。

Also during this call, the management will discuss certain non-GAAP financial measures, which management believes can be useful in evaluating the company's performance. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. You will find information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release.

同樣在此次電話會議中，管理層將討論某些非 GAAP 財務措施，管理層認為這些措施可能有助於評估公司的業績。不應孤立地考慮非 GAAP 財務措施的列報或作為根據 GAAP 編制的結果的替代。您將在公司的收益發布中找到有關這些非 GAAP 財務措施的信息以及這些非 GAAP 財務措施與最直接可比的 GAAP 措施的調節。

A live broadcast of this call is also available on the Investor Relations section of the company's website at ir.olaplex.com. Additionally, during this call, management will refer to certain data points, estimates and forecasts that are based on industry publications or other publicly available information as well as our internal sources. The company has not independently verified the accuracy or completeness of data contained in the industry publications or other publicly available information. Furthermore, this information involves assumptions and limitations, and you are cautioned not to give undue weight to these estimates.

該公司網站 ir.olaplex.com 的投資者關係部分也提供此次電話會議的現場直播。此外，在此次電話會議中，管理層將參考基於行業出版物或其他公開信息以及我們內部資源的某些數據點、估計和預測。公司尚未獨立核實行業出版物或其他公開信息中包含的數據的準確性或完整性。此外，此信息涉及假設和限制，請注意不要過度重視這些估計。

With that, I will now turn the call over to JuE Wong.

有了這個，我現在將把電話轉給 JuE Wong。

Thank you, Patrick, and good morning, everyone. Thank you for joining us today. As disclosed in today's press release, following multiple years of strong growth, we expect 2023 net sales down 15% from last year and adjusted EBITDA down 32%, in each case, at the midpoint of our annual guidance range. This expectation follows an analysis of recent business trends, the issues we face and the growth opportunities in front of us. Based on this work, we realize that we need to invest more to keep pace with our rapid growth and current scale. As we look at our plan for 2023 with macro uncertainties and quickly changing market dynamics, reducing visibility, we see the need to reset and stabilize our core business with a long-term view. We are disappointed with this outlook and hold ourselves accountable for getting to this position and for improving the business. This year, we have a clear focus on increasing investments in sales and marketing, education and our partner relationships, and we believe this initiative will optimize our potential and position Olaplex to resume growth in 2024 and beyond.

謝謝帕特里克，大家早上好。感謝您今天加入我們。正如今天的新聞稿中所披露的那樣，在經歷了多年的強勁增長之後，我們預計 2023 年的淨銷售額將比去年下降 15%，調整後的 EBITDA 將下降 32%，兩者均處於我們年度指導範圍的中點。這一預期是在對最近的業務趨勢、我們面臨的問題和我們面前的增長機會進行分析之後做出的。基於這項工作，我們意識到我們需要更多投資以跟上我們的快速增長和當前規模。當我們審視我們 2023 年的計劃時，宏觀不確定性和快速變化的市場動態降低了能見度，我們認為有必要從長遠的角度重新調整和穩定我們的核心業務。我們對這種前景感到失望，並認為我們有責任實現這一目標並改善業務。今年，我們的重點明確是增加對銷售和營銷、教育以及我們的合作夥伴關係的投資，我們相信這一舉措將優化我們的潛力，並使 Olaplex 能夠在 2024 年及以後恢復增長。

On today's call, I will walk you through our analysis and how we are addressing the issues and opportunities. It is important to take a step back and acknowledge what we believe are the lessons learned. Going back to the very beginning in 2014, Olaplex disrupted and revolutionized the prestige hair care category, improving hair health for millions of consumers. And since then, we have experienced tremendous growth, quickly growing from $148 million in sales in 2019 to $704 million in 2022. During this time, we will focus on driving a synergistic omnichannel strategy, building out the infrastructure to enable our growth and investing in size and innovation capabilities to fuel further product introductions. We see significant long-term growth potential with our leadership position and ability to shape the global prestige haircare market, a market which is attractive healthy and in its early stages of growth.

在今天的電話會議上，我將向您介紹我們的分析以及我們如何解決問題和機遇。重要的是退後一步，承認我們認為是吸取的教訓。回到 2014 年初，Olaplex 顛覆並徹底改變了高端護髮品類，改善了數百萬消費者的頭髮健康。從那時起，我們經歷了巨大的增長，銷售額從 2019 年的 1.48 億美元迅速增長到 2022 年的 7.04 億美元。在此期間，我們將專注於推動協同全渠道戰略，建設基礎設施以實現我們的增長，並投資於規模和創新能力，以推動進一步的產品推出。憑藉我們的領導地位和塑造全球知名護髮市場的能力，我們看到了巨大的長期增長潛力，這是一個具有吸引力的健康且處於早期增長階段的市場。

That said, with the recent change in momentum in our business, we have taken time over the past several months to not only assess impacts from the macro environment, but also identify areas of our business that we could have managed better as we scale as well as take stock of the core fundamental strength that has and will continue to differentiate Olaplex. To start with the macro, there are factors that we have discussed previously, but it's important to revisit. We are seeing U.S. professional stylists buying less and buying closer to need as they report clients lengthening the time between salon visits. Consumers have been price sensitive, and our strategy to avoid over promotion to manage the health of the brand has been a negative factor in the short term, and certain Pro and Specialty Retail customers have lowered inventory levels to adjust to those trends while global supply chain constraints have eased.

也就是說，隨著最近我們業務勢頭的變化，我們在過去幾個月裡不僅評估了宏觀環境的影響，還確定了我們在擴大規模時本可以更好地管理的業務領域評估已經並將繼續使 Olaplex 與眾不同的核心基本力量。從宏觀開始，有一些我們之前討論過的因素，但重新審視是很重要的。我們看到美國專業造型師購買更少，購買更貼近需要，因為他們報告客戶延長了兩次沙龍訪問之間的時間。消費者對價格敏感，我們避免過度促銷以管理品牌健康的策略在短期內是一個負面因素，某些專業和專業零售客戶降低了庫存水平以適應這些趨勢，同時全球供應鏈限制有所緩解。

Moving on to what we could have done better. We identified 4 key capabilities that we believe we need to invest in more and that need to be further strengthened. First, as the category leader, we have the resources, and we need to invest even more to build awareness and defend the brand from the natural competitive intensity that exists in an attractive category. We recognize that we could have benefited more if we had placed our Chief Marketing Officer sooner than January 2022. We have since built out the key internal marketing functions. These teams are now in place and building our efforts for 2023 and beyond.

繼續我們本可以做得更好的事情。我們確定了 4 項我們認為需要投入更多並需要進一步加強的關鍵能力。首先，作為類別領導者，我們擁有資源，我們需要投入更多資金來建立知名度並保護品牌免受有吸引力類別中存在的自然競爭強度的影響。我們認識到，如果我們在 2022 年 1 月之前任命首席營銷官，我們本可以受益更多。我們已經建立了關鍵的內部營銷職能。這些團隊現已到位，正在為 2023 年及以後的發展而努力。

Next, as our assortment has grown through new product launches, we see the opportunity to invest more in education to help stylists and consumers fully understand the facts about our size, efficacy and benefits for all hair types. We have highly talented educators on our team who deeply understand the needs of stylists and consumers. But at our scale today and with the global reach of our brand, we are presented with new challenges that require new approaches to informing consumers about the superior performance that our products deliver.

接下來，隨著我們的產品種類通過新產品的發布而增加，我們看到了在教育方面進行更多投資的機會，以幫助造型師和消費者充分了解我們對所有類型頭髮的尺寸、功效和益處的事實。我們的團隊中有非常有才華的教育工作者，他們深刻理解造型師和消費者的需求。但以我們今天的規模和我們品牌的全球影響力，我們面臨著新的挑戰，需要新的方法來讓消費者了解我們產品所提供的卓越性能。

Also, our partner relationships remain strong, but we need to show even more support for professional and retail communities. Our extraordinary community of stylists remains at the foundation of our brand and are core to maintaining our credibility in the category. And the associates of our partners act as advocates for our brand, speaking to consumers about the benefits that Olaplex delivers. We need to invest further in these relationships, so that stylists and retailers can speak to consumers about our brand and ultimately, grow their own businesses. And lastly, we need to act faster and be better equipped to deal with negative PR and misinformation about our brand, such as has surfaced over the past year.

此外，我們的合作夥伴關係依然牢固，但我們需要對專業和零售社區提供更多支持。我們非凡的造型師社區仍然是我們品牌的基礎，並且是維持我們在該類別中的信譽的核心。我們合作夥伴的員工充當我們品牌的代言人，向消費者宣傳 Olaplex 帶來的好處。我們需要進一步投資於這些關係，以便造型師和零售商可以向消費者介紹我們的品牌，並最終發展他們自己的業務。最後，我們需要更快地採取行動，更好地應對負面公關和關於我們品牌的錯誤信息，例如過去一年出現的情況。

While this information is not uncommon in our industry, we need to be better prepared to identify and address negative narratives and minimize that impact on the brand. Importantly, the core fundamental strength of the brand remains unchanged. This starts with our science-based technology and the active-patented Bis-amino ingredient that is woven into our assortment, deliver superior performance and fueling an innovative multiyear new product pipeline in haircare, adjacencies and new categories.

雖然此類信息在我們的行業中並不少見，但我們需要做好更充分的準備，以識別和解決負面敘述，並最大程度地減少對品牌的影響。重要的是，該品牌的核心基本實力保持不變。這始於我們基於科學的技術和融入我們產品組合的活性專利雙氨基成分，提供卓越的性能，並推動護髮、相關產品和新品類的創新多年新產品線。

We also have best-in-class loyalty with stylists and consumers alike. Our products deliver real benefits to consumers and help our stylist partners grow their businesses. Respondents to our fourth quarter external brand tracker continue to report high trust in Olaplex, and we remain the leader on numerous equity statements that drive consumer loyalty, including highest-quality products, mixed hair, healthier and scientifically proven to benefit hair. The relationships remain solid, but as I mentioned, we think we can do even more by leveraging additional resources at our disposal today to deepen engagement. Also, there are many areas of our business that we believe are well developed. We have consistently invested in core processes and systems inside technology and operations that have supported our incredible growth and are ready to scale.

我們還擁有一流的造型師和消費者忠誠度。我們的產品為消費者帶來真正的好處，並幫助我們的造型師合作夥伴發展業務。我們第四季度外部品牌追踪器的受訪者繼續報告對 Olaplex 的高度信任，我們仍然是眾多推動消費者忠誠度的資產報表的領導者，包括最優質的產品、混合頭髮、更健康和科學證明對頭髮有益的產品。關係仍然穩固，但正如我所提到的，我們認為我們可以通過利用今天可用的額外資源來加深參與來做更多的事情。此外，我們認為我們的許多業務領域發展良好。我們一直在技術和運營內部的核心流程和系統上進行投資，這些流程和系統支持了我們令人難以置信的增長並準備好擴展。

We have always demonstrated strong discipline in managing our cost base and will continue to do so. We believe that now is the time to continue investing in the organization to position us for the long-term growth strategy that we seek to execute even through a more challenging year on the top line.

我們在管理成本基礎方面一直表現出嚴格的紀律，並將繼續這樣做。我們認為，現在是時候繼續投資於該組織，使我們能夠為我們尋求執行的長期增長戰略做好準備，即使是在收入更具挑戰性的一年中。

Turning to the year ahead. Our priorities are tied directly to addressing these aforementioned opportunities head on. They include accelerating investments in sales and marketing, increasing and evolving our educational efforts, reasserting our position with Pro and retail partners and improving our approach to PR, beginning with sales and marketing. We are amplifying our sales and marketing efforts and accelerating the activities that have proven successful in the past. In 2023, we expect marketing inclusive of sampling and sales and marketing payroll to increase to $70 million from $40 million in 2022. Our increased marketing investments were focused on amplifying our brand authority and credibility to drive global recognition and awareness of Olaplex.

轉向未來的一年。我們的優先事項直接與解決上述這些機會直接相關。它們包括加速對銷售和營銷的投資，增加和發展我們的教育工作，重申我們在專業和零售合作夥伴中的地位，以及改進我們的公關方法，從銷售和營銷開始。我們正在擴大我們的銷售和營銷工作，並加速過去已證明成功的活動。到 2023 年，我們預計包括抽樣、銷售和營銷工資在內的營銷將從 2022 年的 4000 萬美元增加到 7000 萬美元。我們增加的營銷投資集中在擴大我們的品牌權威和可信度，以推動 Olaplex 的全球認可度和知名度。

Additionally, we will continue to invest in high ROI activities, including digital community engagement, performance marketing and visual merchandising activities. The strategic approach in all of these activities is aimed at building awareness, increasing consideration of our brand and ultimately, driving conversion. We will also focus on enhancing our sampling program. Given the efficacy of our products, sampling is a highly effective tool for acquiring new customers and enabling existing users to buy deeper into our brand with very solid conversion rate of 30% to 40%. To this end, we will increase sampling at first from approximately 6 million samples in 2022 to roughly 10 million samples this year.

此外，我們將繼續投資於高投資回報率的活動，包括數字社區參與、績效營銷和視覺營銷活動。所有這些活動中的戰略方法旨在建立知名度，增加對我們品牌的考慮並最終推動轉化。我們還將重點加強我們的抽樣計劃。鑑於我們產品的功效，抽樣是獲取新客戶和使現有用戶能夠更深入地購買我們品牌的高效工具，轉化率非常穩定，可達 30% 至 40%。為此，我們將首先增加採樣，從 2022 年的約 600 萬個樣本增加到今年的約 1000 萬個樣本。

Another key objective this year will be increasing our education and training efforts on the Olaplex brand. This will allow us to more carefully explain the merits of our product and how to apply and combine our products for optimal results and will occur across both our professional network as well as our consumer community. One highlight of our education efforts is a refreshed marketing initiative around our core assortment. We recognize the need to formalize a consistent always-on approach for marketing our core products with an anchor around No. 3 as our hero SKU.

今年的另一個主要目標是加大我們對 Olaplex 品牌的教育和培訓力度。這將使我們能夠更仔細地解釋我們產品的優點以及如何應用和組合我們的產品以獲得最佳結果，並將在我們的專業網絡和消費者社區中發生。我們教育工作的一大亮點是圍繞我們的核心產品系列推出了全新的營銷計劃。我們認識到需要正式確定一種始終如一的方法來營銷我們的核心產品，並以 3 號左右的錨點作為我們的英雄 SKU。

As we launch new products, No. 3 needs to remain top of mind, and while No. 3 has been very successful, we believe there are opportunities to better educate on the product and how it is utilized. Along with new elevated content and visual assets across channels, the messaging of this initiative is intended to affirm our leadership in the bond-building space, reinforce the benefits of our products with versatile usage and tips and introduce new claims and testimonials about the superiority of the results we deliver.

當我們推出新產品時，No.3 需要保持首要考慮，雖然 No.3 非常成功，但我們相信有機會更好地宣傳該產品及其使用方式。除了跨渠道的新提升內容和視覺資產外，該計劃的消息傳遞旨在確認我們在建立聯繫領域的領導地位，通過多種用途和技巧加強我們產品的優勢，並介紹有關優越性的新主張和推薦我們提供的結果。

Turning to our focus on the stylist community and our specialty retail partners, beginning with our professional business. To support strong relationships and build further awareness and affinity in this community, we are revamping the content and increasing the number of our sales-focused curriculum programs throughout the Pro network. We are evolving virtual education classes, content and communication of the Pro community, including significant improvements to our Pro app. We are deepening partnerships with our distributors by improving joint business planning and increasing the size of our Olaplex field support team, leading to an increased frequency of contacts with distributor sales teams. And by adding a new and expanding current partnerships with key opinion leader salons, we intend to further penetrate premium and prestige salons. A part of the category will be under index.

轉向我們對造型師社區和我們的專業零售合作夥伴的關注，從我們的專業業務開始。為了支持牢固的關係並在這個社區中建立進一步的意識和親和力，我們正在修改內容並增加整個 Pro 網絡中以銷售為重點的課程計劃的數量。我們正在改進 Pro 社區的虛擬教育課程、內容和交流，包括對我們的 Pro 應用程序的重大改進。我們正在通過改進聯合業務規劃和擴大 Olaplex 現場支持團隊的規模來加深與分銷商的合作夥伴關係，從而增加與分銷商銷售團隊的聯繫頻率。通過增加與主要意見領袖沙龍的新合作夥伴關係並擴大現有合作夥伴關係，我們打算進一步滲透高端和聲望沙龍。該類別的一部分將在索引下。

For specialty retail. In addition to enhancing visual merchandising, adding more digital education programs and deploying targeted CRM and loyalty program, we are rolling out a third-party field sales team education program framed by Olaplex into more Sephora and Ulta retail doors. You may recall that we piloted this program during the fourth quarter in about 75 doors, and we're pleased with the results showing meaningful sales uplift in participating doors. This year, we are scaling this program to 400 doors nationwide, prioritizing key markets and will be engaging directly with consumers, but also driving education of Olaplex with in-store associates.

用於專業零售。除了加強視覺營銷、增加更多數字教育計劃和部署有針對性的 CRM 和忠誠度計劃外，我們還在更多絲芙蘭和 Ulta 零售店推出由 Olaplex 設計的第三方現場銷售團隊教育計劃。您可能還記得，我們在第四季度對大約 75 家門進行了該計劃的試點，我們很高興結果顯示參與門的銷售顯著提升。今年，我們將該計劃擴展到全國 400 家門店，優先考慮主要市場，並將直接與消費者互動，同時推動店內員工對 Olaplex 的教育。

We are also adding resources and building out our PR capabilities, which includes taking a more proactive and offensive position to support negative narrative and correct misinformation about Olaplex in the market. Not only are we refuting inaccurate information when it arises, we are also focused on getting ahead of rumors and potential misinformation by proactively and broadly distributing content focused on Olaplex and hair health to social channels and paid media.

我們還增加了資源並增強了我們的公關能力，其中包括採取更主動和更具攻擊性的立場來支持負面報導並糾正市場上有關 Olaplex 的錯誤信息。我們不僅會在不准確的信息出現時予以反駁，我們還通過主動和廣泛地將重點關注 Olaplex 和頭髮健康的內容髮佈到社交渠道和付費媒體，專注於領先於謠言和潛在的錯誤信息。

To that end, I want to address the recent negative media headlines that claims Olaplex products cause hair loss. So anyone experiencing hair loss and hair breakage, we understand the emotional toll it has and are empathetic to the impact on your well-being. However, Olaplex products do not cause hair loss or hair breakage. Olaplex products are safe and effective as millions of our consumers can happily attest and as evidenced by our published HRIPT test results. We also recognize the concern that this misinformation may cause our loyal customers, stylists and retail partners when hearing baseless claims about a product they love and trust.

為此，我想談談最近聲稱 Olaplex 產品會導致脫髮的負面媒體頭條。因此，任何經歷過脫髮和斷發的人，我們都理解它所造成的情感損失，並且理解它對您的健康造成的影響。但是，Olaplex 產品不會導致脫髮或斷發。 Olaplex 產品安全有效，我們的數百萬消費者可以高興地證明這一點，我們公佈的 HRIPT 測試結果也證明了這一點。我們也意識到這種錯誤信息可能會導致我們的忠實客戶、造型師和零售合作夥伴在聽到關於他們喜愛和信任的產品的毫無根據的聲明時感到擔憂。

Unfortunately, there is no barrier to prevent this, and it is not unusual for consumer products to be targeted, despite the lack of evidence. However, this allegation can only be completely refuted in the fullness of time. We are actively defending our brand against this allegation. We recently posted on our website independent third-party test results that show our products are safe. We have received positive consumer feedback under video testimonials published across our social media channels, e-mail and website, and social media sentiment on this topic continues to trend more positively.

不幸的是，沒有任何障礙可以防止這種情況發生，儘管缺乏證據，但消費品成為攻擊目標的情況並不少見。然而，這一指控只能在時機成熟時被徹底駁斥。我們正在針對這一指控積極捍衛我們的品牌。我們最近在我們的網站上發布了獨立的第三方測試結果，表明我們的產品是安全的。在我們的社交媒體渠道、電子郵件和網站上發布的視頻推薦中，我們收到了積極的消費者反饋，並且社交媒體對這一主題的看法繼續呈積極趨勢。

In conclusion, we recognize that this reset will not be easy, but our team is prepared to execute against this priority. Olaplex is the #1 professional bond builder brand in the world and loved by millions. We lead the attractive, fast-growing prestige hair care category, and we are focusing our resources to extend that leadership. We are confident that our scale, future growth opportunities, industry-leading profitability, strong balance sheet and robust cash generation, we will emerge from this year even stronger as an organization, as a business and as a brand.

總之，我們認識到這次重置並不容易，但我們的團隊已準備好執行這一優先事項。 Olaplex 是世界上排名第一的專業粘合劑品牌，受到數百萬人的喜愛。我們引領著極具吸引力、快速增長的高檔護髮品類，我們正在集中資源擴大這一領先地位。我們有信心，我們的規模、未來的增長機會、行業領先的盈利能力、強勁的資產負債表和強勁的現金產生能力，我們將從今年開始變得更加強大，作為一個組織、一個企業和一個品牌。

At this point, I'll turn the call over to Eric to cover our fourth quarter results and provide additional details on our outlook for 2023. Eric?

在這一點上，我會把電話轉給埃里克來報導我們第四季度的業績，並提供有關我們 2023 年展望的更多細節。埃里克？

Thank you, JuE, and good morning, everyone. In the fourth quarter of 2022, net sales declined 21.5% to $130.7 million versus $166.5 million last year. We believe that fourth quarter net sales were negatively impacted by approximately $29 million at several of our key customers as these customers lowered their orders to rebalance inventory in response to lower levels demand and to target overall lower levels of month on hand than previously carried.

謝謝你，JuE，大家早上好。 2022 年第四季度，淨銷售額下降 21.5% 至 1.307 億美元，而去年同期為 1.665 億美元。我們認為，我們的幾個主要客戶的第四季度淨銷售額受到了大約 2900 萬美元的負面影響，因為這些客戶降低了訂單以重新平衡庫存，以應對較低水平的需求，並以比以前更低的月庫存量為目標。

By Channel, professional sales declined 3.9% to $54.9 million versus a 9% increase last year, which was in line with our expectations. This decline was driven by reduced purchases by our stylist community in the U.S. and the U.K., partially driven by the tougher macro environment impacting the professional channel. This was evidenced by the latest available Klein data, which showed total market front of salon sales in the U.S. declined by 2% in the third quarter, while Olaplex front of sale sell-through in the third quarter was up 2% compared to last year. Specialty Retail sales decreased 45.3% to $32.6 million, following a robust 332% gain in the prior year period. Performance was below the expectations we provided on our third quarter call, reflecting a softening in replenishment demand in an increasingly competitive environment, including heightened promotional activity during the holiday season. In addition, as we previously communicated, we were lapping the $15 million initial wave of Ulta pipeline fill in Q4 2021.

按渠道劃分，專業銷售額下降 3.9% 至 5490 萬美元，而去年增長 9%，這符合我們的預期。這一下降是由於我們在美國和英國的造型師社區的購買量減少，部分原因是更嚴峻的宏觀環境影響了專業渠道。最新的 Klein 數據證明了這一點，該數據顯示美國沙龍銷售額的總市場規模在第三季度下降了 2%，而 Olaplex 在第三季度的銷售額比去年同期增長了 2% .繼去年同期強勁增長 332% 之後，專業零售銷售額下降 45.3% 至 3260 萬美元。業績低於我們在第三季度電話會議上提供的預期，反映出在競爭日益激烈的環境中補貨需求疲軟，包括節日期間促銷活動的加強。此外，正如我們之前所傳達的那樣，我們將在 2021 年第四季度完成價值 1500 萬美元的 Ulta 管道填充的初始浪潮。

And our direct-to-consumer channel sales were down 13.2% to $43.2 million following an 85% increase last year. DTC sales were better than our expectations, driven by strength during the key holiday selling weeks, especially Black Friday and Cyber Monday across olaplex.com and our DTC partners. Sales were down across geographies with International down 13.4% and the U.S. down 28%. The U.S. largely linked to the aforementioned Specialty Retail drivers, including the lapping of the Ulta pipeline.

在去年增長 85% 之後，我們直接面向消費者的渠道銷售額下降了 13.2% 至 4320 萬美元。 DTC 銷售額好於我們的預期，這主要受關鍵假期銷售週的強勁推動，尤其是 olaplex.com 和我們的 DTC 合作夥伴的黑色星期五和網絡星期一。各個地區的銷售額都下降了，國際下降了 13.4%，美國下降了 28%。美國在很大程度上與上述專業零售驅動因素有關，包括 Ulta 管道的鋪設。

Moving down the income statement. Adjusted gross profit margin was 72.5%, declining 790 basis points from 80.4% in Q4 2021. Approximately 300 basis points of this contraction reflects deleverage and inflation in our warehousing and distribution costs, 190 basis points of unfavorable product mix and 160 basis points from inflation on product costs with the balance primarily related to increased sampling and unfavorable customer mix. These more than offset the benefit of the price increase we took from July 1, 2022.

向下移動損益表。調整後的毛利率為 72.5%，較 2021 年第四季度的 80.4% 下降了 790 個基點。這一收縮約 300 個基點反映了我們倉儲和配送成本的去槓桿化和通貨膨脹、不利的產品組合 190 個基點和通貨膨脹 160 個基點產品成本的平衡主要與增加抽樣和不利的客戶組合有關。這些抵消了我們從 2022 年 7 月 1 日起提價的好處。

Adjusted SG&A increased 27.6% to $28.8 million from $22.6 million in Q4 2021. The $6.2 million increase in adjusted SG&A from prior year is primarily the result of a $5.8 million increase in sales and marketing expense to drive demand and support the long-term growth of the business. The remainder of the increase is attributable to workforce expansion and other related expenses. Adjusted EBITDA declined 38.9% to $67.6 million versus $110.7 million in the fourth quarter of 2021. Adjusted EBITDA margin was 51.7% compared to 66.5% a year ago. Adjusted net income decreased 32.3% year-over-year to $48.3 million or $0.07 per diluted share from $71.4 million or $0.10 per diluted share in the 2021 fourth quarter. Adjusted net income benefited from lower interest expense year-over-year due to our debt paydown and refinance in the first quarter of 2022.

調整後的 SG&A 從 2021 年第四季度的 2260 萬美元增長 27.6% 至 2880 萬美元。調整後的 SG&A 比上一年增加 620 萬美元的主要原因是銷售和營銷費用增加 580 萬美元以推動需求並支持長期增長這生意。其餘增長歸因於勞動力擴張和其他相關費用。調整後的 EBITDA 下降 38.9% 至 6760 萬美元，而 2021 年第四季度為 1.107 億美元。調整後的 EBITDA 利潤率為 51.7%，而一年前為 66.5%。調整後淨收入同比下降 32.3%，從 2021 年第四季度的 7140 萬美元或攤薄後每股收益 0.10 美元降至 4830 萬美元或攤薄後每股收益 0.07 美元。由於我們在 2022 年第一季度償還債務和再融資，調整後的淨收入受益於利息支出同比下降。

Now turning to the balance sheet. Inventory at the end of the fourth quarter was $144.4 million, down from $151.3 million at the end of the third quarter. The reduction in inventory levels as a result of our decision to alter our sourcing plans and slow procurement to match the new sales forecast, which more than offset building inventory of new SKUs as we prepare for product launches this year.

現在轉向資產負債表。第四季度末的庫存為 1.444 億美元，低於第三季度末的 1.513 億美元。由於我們決定改變我們的採購計劃並放慢採購速度以符合新的銷售預測，導致庫存水平下降，這大大抵消了我們為今年的產品發布做準備的新 SKU 的庫存。

Turning to cash flow. We remain an asset-light and strong cash flow generating business. During 2022, we generated $255.3 million in cash from operations, up 27.6% from $200 million for the prior year. This included cash from operations growing year-over-year in the fourth quarter. For 2023, we anticipate another year of healthy cash generation as we maintain a high level of profitability and improve our working capital position primarily through lower inventory. We ended the year with $322.8 million in cash and equivalents. Long-term debt net of current portion and deferred fees was $654.3 million.

轉向現金流。我們仍然是一家輕資產和強大的現金流產生業務。 2022 年，我們從運營中產生了 2.553 億美元的現金，比上一年的 2 億美元增長了 27.6%。這包括第四季度同比增長的運營現金。到 2023 年，我們預計又會產生健康的現金，因為我們保持高水平的盈利能力並主要通過降低庫存來改善我們的營運資金狀況。年底，我們擁有 3.228 億美元的現金和等價物。扣除流動部分和遞延費用後的長期債務為 6.543 億美元。

Now turning to our financial outlook. As JuE mentioned earlier in the call, we believe 2023 represents a temporary setback in our longer-term growth trajectory as we lap tough comparators in the first half of the year and seek to rebuild our momentum through the execution of our strategy. We fully recognize that this guidance is disappointing versus expectations for 2023, and as JuE mentioned earlier, we take full accountability for what we consider to be key lessons learned in getting here. On that note, I think it's important to acknowledge how we approach guidance for 2023, which we've noted as a reset year on our path back to growth in 2024 and beyond.

現在轉向我們的財務前景。正如 JuE 早些時候在電話會議中提到的那樣，我們認為 2023 年是我們長期增長軌蹟的暫時挫折，因為我們在今年上半年進行了艱難的比較，並尋求通過執行我們的戰略來重建我們的勢頭。我們完全認識到，與 2023 年的預期相比，這一指導令人失望，正如 JuE 之前提到的，我們對我們認為是實現這一目標的關鍵經驗教訓負全部責任。在這一點上，我認為重要的是要承認我們如何處理 2023 年的指導方針，我們將 2023 年視為我們在 2024 年及以後恢復增長道路上的重置年。

First and foremost, we've considered and reflected our current view of consumer demand, taking into account that it will take some time for our marketing and sales actions to have their full impact. Second, given the uncertainty of the macro environment and quickly changing market dynamics, we believe a wider guidance range is appropriate for us in 2023. Lastly, we are seeking to provide additional details related to some of the noteworthy net sales milestones in the prior year and current year to help show the underlying business trends. As you will see, this leads to a plan in which we believe both net sales and profit trends will improve sequentially as the year progresses, ultimately leading to growth in the fourth quarter and as we enter 2024.

首先，我們已經考慮並反映了我們目前對消費者需求的看法，考慮到我們的營銷和銷售行動需要一些時間才能產生全面影響。其次，鑑於宏觀環境的不確定性和快速變化的市場動態，我們認為 2023 年更廣泛的指導範圍適合我們。最後，我們正在尋求提供與前一年一些值得注意的淨銷售額里程碑相關的更多詳細信息和當年有助於顯示潛在的業務趨勢。正如您將看到的，這導致了一項計劃，我們相信隨著時間的推移，淨銷售額和利潤趨勢將依次改善，最終導致第四季度和我們進入 2024 年時實現增長。

Let me start with the drivers and our outlook for the first quarter. First, we expect the continuation of the negative effects from inventory rebalancing from certain Pro and Specialty Retail customers, which we have mentioned on prior calls. Based on current sell-in and sell-through assumptions, we expect the net year-over-year impact of this to depress sell-in growth for both the Pro and Specialty Retail channels for Q1 by approximately $25 million in aggregate. We are also facing a difficult year-over-year comparison with our successful launch at Ulta Beauty. Although the sell-in for our launch in Ulta began in the fourth quarter of 2021, in response to strong sell-through, we shipped an additional 10 million of inventory pipeline in the first quarter of 2022. We are now lapping those shipments in the first quarter of 2023.

讓我從驅動因素和我們對第一季度的展望開始。首先，我們預計某些專業和專業零售客戶的庫存再平衡將繼續產生負面影響，我們在之前的電話會議上已經提到過這一點。根據當前的銷售和銷售假設，我們預計這對第一季度專業零售渠道和專業零售渠道的銷售增長的淨同比影響總共減少約 2500 萬美元。與我們在 Ulta Beauty 的成功推出相比，我們還面臨著艱難的逐年比較。儘管我們在 Ulta 推出的銷售始於 2021 年第四季度，但為了應對強勁的銷售，我們在 2022 年第一季度額外運送了 1000 萬庫存管道。我們現在正在處理這些發貨2023 年第一季度。

Next, while we are forecasting incremental growth from the sell-in of new product introductions in 2023, this is more than offset by a lower baseline level of demand for core products. Altogether, at the midpoint of our annual guidance, we currently expect net sales to decline 41% in Q1, which compares to a revenue increase of 57.6% in Q1 '22, representing a 7% decline on a 2-year stack. By channel, professional sales are expected to decline 43%, following growth of 62.6% in Q1 '22. Specialty Retail sales are expected to decline 47%, following growth of 102.5% in Q1 '22. And direct-to-consumer sales are expected to decline 28%, following growth of 15.1% in Q1 '22.

接下來，雖然我們預測 2023 年推出的新產品銷量會出現增量增長，但這被核心產品較低的基線需求水平所抵消。總而言之，在我們年度指導的中點，我們目前預計第一季度淨銷售額將下降 41%，而 22 年第一季度的收入將增長 57.6%，兩年累計下降 7%。按渠道劃分，繼 22 年第一季度增長 62.6% 之後，專業銷售額預計將下降 43%。繼 22 年第一季度增長 102.5% 之後，專業零售銷售額預計將下降 47%。繼 22 年第一季度增長 15.1% 之後，直接面向消費者的銷售額預計將下降 28%。

Moving to the second quarter. We expect net sales to sequentially improve compared to Q1, but remained down significantly compared to the year ago period. This is due to the continuation of a lower baseline level of demand as well as lapping 2 challenging comparators from Q2 2022. First, we will be lapping an approximately $22 million net sales impact in the second quarter of 2022 from the introduction of one leader size offerings in the North American professional channel, which we do not expect to offset in 2023. Second, in the second quarter of last year, we experienced some pull forward in demand as some Specialty Retail customers chose to buy ahead of our announced price increases a year ago. Although the impact of this pull forward reverts in Q3, this results in a $10 million headwind in the second quarter of 2023.

轉到第二季度。我們預計淨銷售額與第一季度相比將有所改善，但與去年同期相比仍顯著下降。這是由於較低的基線需求水平以及從 2022 年第二季度開始超過 2 個具有挑戰性的比較對象。首先，我們將在 2022 年第二季度通過引入一個領導者規模獲得約 2200 萬美元的淨銷售額影響北美專業渠道的產品，我們預計這不會在 2023 年抵消。其次，在去年第二季度，我們經歷了一些需求的拉動，因為一些專業零售客戶選擇在我們宣布的價格上漲之前購買一年前。儘管這種前移的影響在第三季度恢復，但這會導致 2023 年第二季度出現 1000 萬美元的逆風。

When looking at channel performance in Q2, because of the issues I just mentioned, we expect the professional channel to be the most challenged, followed by Specialty Retail and DTC. As we move into the second half of the year, we are no longer faced with any material headwinds from inventory rebalancing, the introduction of one leaders or earlier timing of shipments ahead of price increases. We expect to benefit from the net impact of new product introductions and additional distribution gains that are strategic and build brand equity. We also expect to begin to benefit from an improvement in baseline demand due to our increased investments in education, sales and marketing.

在查看第二季度的渠道表現時，由於我剛才提到的問題，我們預計專業渠道面臨的挑戰最大，其次是專業零售和 DTC。隨著我們進入今年下半年，我們不再面臨庫存重新平衡、一位領導者的引入或在價格上漲之前提前發貨的任何重大不利因素。我們預計將從新產品推出的淨影響和戰略性的額外分銷收益中獲益，並建立品牌資產。由於我們增加了對教育、銷售和營銷的投資，我們還預計將開始受益於基線需求的改善。

Taken together, for fiscal 2023, we expect net sales in the range of $563 million to $634 million. Based on the midpoint of this range, this is down 15% versus 2022. Adjusted net income in the range of $176 million to $224 million were based on the midpoint, a 36% decrease versus 2022, and adjusted EBITDA in the range of $261 million to $322 million or based on the midpoint, a 32% decrease versus 2022. Embedded in our guidance is a 300 to 400 basis point decline in gross margin for the year as inflation and warehousing and distribution costs and deleverage from lower sales volumes more than offset the positive impacts of cost savings and price increases implemented in the second half of last year.

總而言之，我們預計 2023 財年的淨銷售額將在 5.63 億美元至 6.34 億美元之間。根據該範圍的中點，這比 2022 年下降了 15%。調整後的淨收入在 1.76 億美元至 2.24 億美元的範圍內基於中點，比 2022 年下降 36%，調整後的 EBITDA 在 2.61 億美元的範圍內至 3.22 億美元或基於中點，與 2022 年相比下降 32%。我們的指導意見表明，今年毛利率下降 300 至 400 個基點，原因是通貨膨脹、倉儲和分銷成本以及銷量下降帶來的去槓桿化抵消了更多去年下半年實施的成本節約和價格上漲的積極影響。

As JuE indicated earlier, given the confidence in our long-term strategy, we are making the strategic decision to invest through the challenges we're experiencing in 2023. So at the midpoint of our guidance, we expect adjusted EBITDA margin of approximately 48.7% for 2023, down from 60.9% last year. We expect adjusted EBITDA margins below this level in the first half of the year with the most contraction in Q1, higher than this rate in the second half with an improvement in the topline drives operating leverage. We expect interest expense to be $40 million and an effective tax rate of approximately 20.5% for the year. As I mentioned earlier, we anticipate another year of healthy cash generation in 2023, even in a reset year as we maintain a high level of profitability and improve our working capital position.

正如 JuE 之前指出的那樣，鑑於對我們長期戰略的信心，我們正在做出戰略決策，以應對我們在 2023 年遇到的挑戰。因此，在我們指導的中點，我們預計調整後的 EBITDA 利潤率約為 48.7% 2023 年，低於去年的 60.9%。我們預計今年上半年調整後的 EBITDA 利潤率將低於這一水平，第一季度收縮幅度最大，下半年將高於這一水平，同時營收驅動經營槓桿率有所改善。我們預計今年的利息支出為 4000 萬美元，有效稅率約為 20.5%。正如我之前提到的，我們預計 2023 年將再次產生健康的現金，即使是在重置的一年，因為我們保持高水平的盈利能力並改善我們的營運資金狀況。

In summary, we believe 2023 represents a reset in our long-term growth trajectory as we reposition the business for future growth. Although we are facing headwinds, we remain confident that our differentiated product technology, strong engagement and disruptive innovation along with the execution of our strategy and impact from reinvesting in core processes will enable us to return to sales growth with top-tier industry profitability and cash generation.

總而言之，我們認為 2023 年是我們長期增長軌蹟的重置，因為我們會為未來增長重新定位業務。儘管我們面臨逆風，但我們仍然相信，我們差異化的產品技術、強大的參與度和顛覆性創新，以及我們戰略的執行和核心流程再投資的影響，將使我們能夠以一流的行業盈利能力和現金恢復銷售增長一代。

This concludes our prepared remarks. We'll now turn the call back over to the operator for questions. Operator?

我們準備好的發言到此結束。我們現在將把電話轉回接線員詢問問題。操作員？

(Operator Instructions)

（操作員說明）

Our first questions come from the line of Bill Chappell with Truist Securities.

我們的第一個問題來自 Truist Securities 的 Bill Chappell。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

Yes, we can hear you.

是的，我們能聽到你的聲音。

I just want to, I guess, -- and you talk about the marketing promotion trial drive for this year. It certainly makes sense. Just trying to understand, as you look back, do you think part of the reason or the reason is kind of the shortfall as we move to the -- or slowdown in the back half of the year was because you weren't doing enough in terms of marketing advertising? Or is this more to kind of enable you to hit the potential as we move 2, 3 years out?

我想，我只是想 - 你談談今年的營銷推廣試駕。這當然有道理。只是想了解一下，當你回顧過去時，你認為部分原因還是原因是我們進入 - 或者下半年放緩是因為你做得不夠營銷廣告條款？還是這更多是為了讓您在我們 2、3 年後發揮潛力？

Bill, this is JuE. I'll take the question. So one of the things that we want to highlight is, obviously, it's never going to be one reason. It is a combination of factors. If you look at what we have shared previously, that's the macroeconomic environment. And we have always said, we are resilient, but we are not immune, right, to macroeconomic conditions. There is also increased competition, and again, we acknowledge competition is good because it elevates the awareness for the category, higher level of discounting, which you have heard us said, misconceptions about our brand, all of this play a factor. It gave us some pause. We looked at it, but what is very important to understand too is, our brand is still very strong.

比爾，這是 JuE。我來回答這個問題。所以我們要強調的一件事是，顯然，它永遠不會成為一個原因。它是多種因素的組合。如果你看看我們之前分享的內容，那就是宏觀經濟環境。我們一直說，我們有彈性，但我們不能倖免於宏觀經濟狀況。競爭也越來越激烈，我們再次承認競爭是好的，因為它提高了對該類別的認識，更高水平的折扣，你聽到我們說過，對我們品牌的誤解，所有這些都起到了作用。它給了我們一些停頓。我們看著它，但同樣重要的是要了解，我們的品牌仍然非常強大。

The fundamental of the brand is right there for us to see. Starting with our science or technology that we bring to the table, especially with our patented technology, we deliver very much superior performance and our innovation is set for multiyear. So hopefully, it answers your question on this point because if you look at even certain key metrics that we track primarily because it shows the health of the brand, which includes like retention. Our retention is strong. I mean this is based on independent third-party data that omnichannel retention across retail is significantly higher than the peer set retained from 2021 to 2022. We have also shared in the past that while our customer acquisition has slowed, but our brand's final lapse rate is the lowest amongst peers. So I hope that this gives you some reasons to understand how we got here.

品牌的基礎就在那裡供我們看到。從我們帶到桌面的科學或技術開始，尤其是我們的專利技術，我們提供非常卓越的性能，我們的創新將持續多年。所以希望它能回答你關於這一點的問題，因為如果你查看我們跟踪的某些關鍵指標，主要是因為它顯示了品牌的健康狀況，其中包括保留率。我們的保留力很強。我的意思是，這是基於獨立的第三方數據，從 2021 年到 2022 年，零售業的全渠道留存率明顯高於同行留存率。我們過去也曾分享過，雖然我們的客戶獲取速度有所放緩，但我們品牌的最終流失率是同行中最低的。所以我希望這能給你一些理由來理解我們是如何走到這一步的。

Yes. Absolutely. And I guess, just kind of a follow-up to that. Looking at the professional channel and kind of calling it probably the weaker of the 3 channels this year, have you already made strides or already been able to kind of turn the recommendations that, that seems such an important for recommending the whole portfolio that it comes from the stylists? And have you already -- and I know you've, over the past few months, seen a turn in terms of recommendations and improvement there. Or is that something we're really expecting kind of over the next few months?

是的。絕對地。我想，這只是一種後續行動。看看專業頻道，並稱它可能是今年 3 個頻道中較弱的一個，你是否已經取得了長足的進步，或者已經能夠改變這些建議，這對於推薦它來的整個投資組合來說似乎非常重要來自造型師？在過去的幾個月裡，你是否已經——我知道你已經看到了那裡的建議和改進方面的轉變。或者這是我們在接下來幾個月真正期待的事情？

Well, we have already started working on improving our relationships with our stylist community. We have always done that. But what we are going to do is, we're going to dial up, we're going to amp up that coverage and the support of the stylist community, which includes both virtual and in-person as well as support in stores. So all of this will help with the communication, the messaging and the branding and stylists, as you know, love the interaction with Olaplex. When we do survey after survey and communications with them, the things that they love most about us is the community that we have built with them and around them.

好吧，我們已經開始致力於改善我們與造型師社區的關係。我們一直這樣做。但我們要做的是，我們將撥打電話，我們將擴大造型師社區的覆蓋範圍和支持，包括虛擬和麵對面的支持以及商店支持。因此，如您所知，所有這些都將有助於溝通、消息傳遞和品牌推廣，而造型師喜歡與 Olaplex 的互動。當我們一次又一次地進行調查並與他們交流時，他們最喜歡我們的地方是我們與他們以及圍繞他們建立的社區。

Our next questions come from the line of Dana Telsey with Telsey Advisory Group.

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

Can you hear me okay?

你能聽到我說話嗎？

Yes.

是的。

As you think about the brand and the product, how are you thinking about new product introductions, timing and magnitude? How are you thinking about the core product and addressing either do you need to remarket it in a way? Or how do you think of being able to get that core customer back? And has any surveys that you've done given you indications of what people need to see or what they'd like to see? And what does this mean in terms of pricing and how you price the product in this more promotional environment?

當您考慮品牌和產品時，您如何考慮新產品的推出、時間和規模？您如何考慮核心產品並解決您是否需要以某種方式對其進行再營銷？或者您如何看待能夠讓核心客戶回來？您所做的任何調查是否表明人們需要看到什麼或他們希望看到什麼？這在定價方面意味著什麼，以及您如何在這個更具促銷性的環境中為產品定價？

Thanks, Dana, for that question. Let me sort of like break it down. First of all, our product innovations and launches, as we have previously shared, we will continue to do 2 to 3 a year because we believe that by doing a very focused innovation launch anniversary, those launches will help with our retailers to partner with us to really drive representation, in-store and online and offline. In terms of our innovations to date, what you have seen in 2023, we have launched our 4D dry shampoo. And it is one -- in fact, it is the #1 dry shampoo in all of the channels that we have launched in, and we actually do have an exclusive launch at the moment with Pro and with a specific Specialty Retailer.

謝謝 Dana 提出這個問題。讓我有點像分解它。首先，我們的產品創新和發布，正如我們之前分享的那樣，我們將繼續每年進行 2 到 3 次，因為我們相信通過一個非常有針對性的創新發布週年紀念日，這些發布將有助於我們的零售商與我們合作真正推動店內、線上和線下的代表性。就我們迄今為止的創新而言，您在 2023 年看到的是，我們推出了 4D 乾洗洗髮水。它是一個——事實上，它是我們推出的所有渠道中排名第一的干洗洗髮水，而且我們目前確實與 Pro 和一家特定的專業零售商獨家推出。

So it shows you how powerful it is even when the launch is exclusive, we still retain and gain #1 position. In terms of studies and surveys of what we have learned, we continue to see very highly rank that recommendations by hairstylists on our products to their end consumer is key for the brand. And so this is the reason why you've heard me said during our prepared remarks that we are going to focus on an always-on No. 3 campaign, and No. 3, for all of us to understand, that is our core hero SKU. Even though all of our SKUs does very well because you can't be the #1 prestige beauty healthcare brand without having all the SKUs rising, but No. 3 is our core, is our hero. And what we are doing is we are making sure that we have an always-on campaign to really educate, to message and to help stylists end consumers and our retail partners understand the usage and how it halos the rest of our offering.

因此，它向您展示了它的強大功能，即使是獨家發布，我們仍然保持並獲得第一名的位置。就我們所了解的研究和調查而言，我們繼續看到髮型師向他們的最終消費者推薦我們的產品是品牌的關鍵。所以這就是為什麼你聽到我在準備好的發言中說我們將專注於永遠在線的第 3 號活動，而第 3 號，讓我們所有人都明白，這是我們的核心英雄存貨單位。儘管我們所有的 SKU 都做得很好，因為如果沒有所有 SKU 的上升，你就不可能成為排名第一的知名美容保健品牌，但第三名是我們的核心，是我們的英雄。我們正在做的是確保我們有一個永遠在線的活動來真正教育、傳達信息並幫助造型師最終消費者和我們的零售合作夥伴了解用法以及它如何影響我們的其他產品。

Got it. And on pricing, JuE and Eric, how do you see pricing going forward?

知道了。關於定價，JuE 和 Eric，您如何看待未來的定價？

Eric, you're on mute.

埃里克，你靜音了。

Dana, so as you know, we're a premium price product in the prestige category. We believe we're at the right price for the consumer and relative to our competition. What we want to do is continue to offer our consumers and our stylists weigh into the brand, to trial the brand and in sizes and offerings that make sense for them. So we believe we're adequately priced. Any promotional activity we do is only going to be focused on trial and building the regimen behind the brand. We've always said, we choose not to overpromote as a strategy.

Dana，如你所知，我們是高檔產品中的優質產品。我們相信，相對於我們的競爭對手，我們的價格對消費者來說是合適的。我們想要做的是繼續為我們的消費者和我們的造型師提供對品牌的權衡，試用品牌以及對他們有意義的尺寸和產品。所以我們相信我們的價格足夠。我們所做的任何促銷活動都只會專注於嘗試和建立品牌背後的養生法則。我們一直說，我們選擇不過度宣傳作為一種策略。

Got it. And is the new cost structure of the business, would you say the cost structure going forward that would be a more normalized cost structure?

知道了。新的業務成本結構，你會說未來的成本結構將是一個更規範化的成本結構嗎？

What I'd say, Dana, is that we've recognized the need to increase our sales and marketing investments as the market leader in the category, and that's consistent with what we've said in the past. We've just recognized we need to do more, and that's what we're doing in this recent year of 2023. We expect that to continue. And as we've returned to growth as we regain the leverage from that growth. And I'll also add, as we improve gross margin, when that leverage returns, we expect that to help fuel the investments that we're making in the business.

Dana，我要說的是，作為該類別的市場領導者，我們已經認識到需要增加我們的銷售和營銷投資，這與我們過去所說的一致。我們剛剛認識到我們需要做更多的事情，這就是我們在最近的 2023 年所做的事情。我們希望這種情況會繼續下去。隨著我們從增長中重新獲得槓桿作用，我們已經恢復增長。而且我還要補充一點，隨著我們提高毛利率，當槓桿回報時，我們希望這有助於推動我們在業務中的投資。

Our next questions come from the line of Andrea Teixeira with JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

This is Shovana on for Andrea. So you have mentioned before and even today as part of your focus for 2023 that you will be continuing to penetrate into premium and prestige salons where you are under in that. As such, can you please delineate or give us more color on what are some of the steps you've been taking? And when -- what is the response you're seeing? And when do you anticipate to see some favorable aspects that reflected on your numbers?

這是 Andrea 的 Shovana。因此，您之前甚至今天都提到過，作為 2023 年重點的一部分，您將繼續滲透到您所在的高端和聲望沙龍。因此，您能否描述一下或給我們更多關於您一直在採取的一些步驟的顏色？什麼時候——你看到的反應是什麼？您預計什麼時候會看到反映在您的數字上的一些有利方面？

Thank you. Thank you for the question. This is JuE. I will take that question. So first and foremost, we have added resources to our protein to make sure that those premium and prestige salons can be covered. We have also made sure that they have access to our direct-to-pro platform because most of these premium salons do like an automated process to place orders and to really get access to educational content as well as social media content as we see fit. Our head of program has been installed for more than 2 years is a specialist, and this is its know-hows in understanding and driving prestige and premium and key opinion leaders salon. So we have already kind of implemented a lot of the recommendations and the strategy that we believe will set us up right to really address this cohort of specialty and premiums salons.

謝謝。感謝你的提問。我是JuE。我會回答這個問題。因此，首先也是最重要的是，我們已經為我們的蛋白質增加了資源，以確保能夠涵蓋那些優質和聲望的沙龍。我們還確保他們可以訪問我們的直接面向專業平台，因為這些高級沙龍中的大多數確實喜歡自動化的流程來下訂單，並真正獲得我們認為合適的教育內容和社交媒體內容。我們的項目負責人已擔任 2 年多的專家，這是其在理解和推動聲望和優質和關鍵意見領袖沙龍方面的專業知識。因此，我們已經實施了很多建議和策略，我們相信這些建議和策略將使我們能夠真正解決這群專業和高級沙龍的問題。

And it's -- I will not be at a place to tell you exactly when we will see the results, but we are seeing a lot of adoption, especially from a direct-to-Pro app, where people are signing up and wanting to get more education, more understanding about the brand. So that's a great solid first indication of how this program is working.

而且它 - 我不會在一個地方告訴你我們什麼時候會看到結果，但我們看到了很多采用，特別是來自直接到專業的應用程序，人們正在註冊並希望獲得更多的教育，更多的了解品牌。所以這是該程序如何運作的一個很好的初步指示。

Just a quick follow-up. Can you give us a sense of the magnitude of how many salons you're seeing or interest level? Or is that something you would refrain from right now?

只是快速跟進。你能告訴我們你看到的沙龍數量或興趣水平的規模嗎？或者這是你現在會避免的事情？

What I would just give you is what the Professional Beauty Association data point, points to. While the premium key opinion leaders salons are relatively small. They do represent a very material part of the revenue generated by the salon community. But what is more important is the premium prestige and key opinion salons are the ones that really also set a lot of the trends and the conversations, and they are really also very much a community that really wants more information educational materials. And we are situated and really positioned right at this point to help stand with all of their wants and their needs.

我只想給你的是專業美容協會數據指向的內容。而優質的關鍵意見領袖沙龍規模相對較小。它們確實代表了沙龍社區產生的收入中非常重要的一部分。但更重要的是，高級聲望和關鍵意見沙龍確實也引領了很多趨勢和對話，而且它們確實也是一個真正需要更多信息教育材料的社區。在這一點上，我們所處的位置和真正的位置可以幫助滿足他們的所有需求。

Our next questions come from the line of Lauren Lieberman with Barclays.

我們的下一個問題來自 Lauren Lieberman 與 Barclays 的對話。

Great. I guess, first, one thing that you haven't addressed on the call this morning so far is just the investment in improving forecasting capabilities. So just wondering how that kind of is playing in? This is a very concrete business plan for this year, but as you think about some of the tools we discussed back in the fall about trying to build more visibility into inventory, not just in the U.S., but I guess, increasingly internationally. I was just curious about plans on that front to begin.

偉大的。我想，首先，到目前為止，您在今天上午的電話會議上還沒有解決的一件事就是對提高預測能力的投資。所以只是想知道那種是怎麼玩的？這是今年的一個非常具體的商業計劃，但是當你想想我們在秋天討論的一些工具時，我們試圖建立更多的庫存可見性，不僅在美國，而且我想，越來越國際化。我只是對這方面的計劃感到好奇。

Thanks, Lauren. It's Eric here. I'll take that one. Absolutely. On our previous call, we talked about the need to improve our forecasting tools and processes. That progress is underway, and we're happy with the progress we're making. That includes new tools we've put in place in the demand planning space to better link sell-in and sell-through at our key accounts. It's also new tools we've put in place, material resource planning tools through NetSuite. So we feel like we're on good track there. We did hit within our guidance range in the fourth quarter, and it's those forecasting tools that's helping us take the signals we're seeing from current consumer demand and project it forward into the outlook we've provided.

謝謝，勞倫。我是埃里克。我會拿那個。絕對地。在我們之前的電話會議上，我們談到了改進我們的預測工具和流程的必要性。這一進展正在進行中，我們對我們正在取得的進展感到滿意。這包括我們在需求規劃空間中使用的新工具，以更好地將關鍵客戶的銷售和銷售聯繫起來。這也是我們已經到位的新工具，通過 NetSuite 的材料資源規劃工具。所以我們覺得我們在這方面進展順利。我們確實在第四季度達到了我們的指導範圍，正是這些預測工具幫助我們從當前的消費者需求中獲取信號，並將其投射到我們提供的前景中。

Okay. And then my other question was just -- I thought the focus on No. 3 was really interesting, and particularly in the context of an idea of a consumer having a more constrained wallet and needing to make choices so that maybe the full regimen is sort of less attainable, let's call it. To what degree is that factoring in when you're thinking about marketing and education sort of being a one product versus a regimen approach? And is that going to be part of the marketing going forward?

好的。然後我的另一個問題是——我認為對第 3 點的關注真的很有趣，尤其是考慮到消費者的錢包更受限制並且需要做出選擇，這樣也許整個養生法就可以了無法實現的，讓我們稱之為。當您將營銷和教育視為一種產品而不是一種養生方法時，這種因素在多大程度上會被考慮在內？這會成為未來營銷的一部分嗎？

Thanks, Lauren. I'll take the question, Lauren. One of the things that's important to note is that Olaplex is a bond-building treatment that plays in segments of hair care that includes shampoo, conditioner, styling as well as hair mask. And when you look at that, the foundation of it is having your bonds repaired. When you get that repair, everything else falls into place, and that's why the focus on No. 3 because there's no other product or technology out there that can truly say it repairs the disulfide bonds the way we do. You have seen us with our patent. You have seen us articulated the pattern. While that is really all great, the science is powerful, we want to make sure that we are in a friendly consumer facing where the consumers can understand why bond building is such -- or bond repair treatment is such an important foundation for them.

謝謝，勞倫。我來回答這個問題，勞倫。需要注意的重要一件事是，Olaplex 是一種增強粘合力的護理產品，適用於洗髮水、護髮素、造型和發膜等護髮產品。當你看到它時，它的基礎是修復你的債券。當你得到修復時，其他一切都會到位，這就是為什麼關注第 3 種，因為沒有其他產品或技術可以真正說它能像我們一樣修復二硫鍵。您已經看到我們的專利。您已經看到我們闡明了模式。雖然這真的很棒，但科學是強大的，我們希望確保我們處於一個友好的消費者面前，消費者可以理解為什麼建立債券是這樣的——或者債券修復治療對他們來說是如此重要的基礎。

And then once that gets message well, educated well, and they understand the need for that, then the rest of the regimen becomes very much intuitive, right? Because you have to shampoo and condition your hair. You have to -- you do style your hair, and you also need to treat your head with a hair mask at least once or twice a week. So we believe by focusing on No. 3 back to our core, it will halo the rest of our other SKUs.

然後一旦它得到很好的信息，良好的教育，並且他們理解對此的需求，那麼其餘的養生法就會變得非常直觀，對吧？因為你必須洗頭和調理頭髮。你必須 - 你做你的頭髮造型，你還需要每周至少用一次或兩次發膜護理你的頭。因此，我們相信通過將重點放在第 3 位回到我們的核心，它將光環我們其他的其他 SKU。

Okay. Great. And then sorry, one more. It was mentioned in the release on cost savings. G&A kind of as you look towards the back half, that kicking in. I was just curious, I was surprised to hear a mention of cost savings at all just given how the company has been. So how significant is this role of cost savings as you think about the profitability and OpEx equation for '23?

好的。偉大的。然後抱歉，還有一個。在關於成本節約的發布中提到了這一點。 G&A 有點像你看向後半部分，那開始了。我只是好奇，考慮到公司的現狀，我很驚訝地聽到有人提到成本節約。那麼，當您考慮 23 年的盈利能力和運營支出等式時，這種成本節約的作用有多重要？

Of course, Lauren. As a normal course of business, we're always going to be looking for opportunities to find efficiencies in our cost base that don't have anything to do with those investments we're making in sales and marketing and the core capabilities of the organization. That's where we're putting our money. So to give you an example, nonpeople-related costs in G&A, some of the money that we spend with consultants, those are efficiencies that we've been driving in 2022 and tend to in 2023. And the other key area here is in our cost of goods as we can better negotiate prices with suppliers as we can find efficiencies in how we go to market. We put a fuel for growth program in place to gather ideas from all across the organization to do exactly that. So I look at it as the classic good cholesterol, bad cholesterol type of approach.

當然，勞倫。作為正常的業務過程，我們總是會尋找機會在我們的成本基礎上找到效率，這與我們在銷售和營銷以及組織的核心能力方面所做的投資沒有任何關係.這就是我們投入資金的地方。因此，舉個例子，G&A 中與人員無關的成本，我們花在顧問身上的一些錢，這些是我們在 2022 年一直在推動並傾向於在 2023 年推動的效率。這裡的另一個關鍵領域是我們的商品成本，因為我們可以更好地與供應商協商價格，因為我們可以找到進入市場的效率。我們制定了增長計劃的燃料，以收集整個組織的想法來做到這一點。所以我將其視為經典的好膽固醇、壞膽固醇類型的方法。

Our next questions come from the line of Susan Anderson with Canaccord Genuity.

我們的下一個問題來自 Susan Anderson 和 Canaccord Genuity。

I was wondering if you could talk about just sell-throughs in the retail channel. I'm not sure if you mentioned that versus obviously sell-ins. I'm curious kind of where Olaplex performed in the quarter versus the industry.

我想知道你是否可以談談零售渠道中的銷售率。我不確定你是否提到過明顯的銷售。我很好奇 Olaplex 在本季度與行業相比的表現。

Susan, thanks for the question. So let me start by saying that in the fourth quarter, the sell-through was robust, and one third-party data source that we can point to is NPD, where in the U.S. retail and DTC market, Olaplex grew well ahead of the category. As we enter into our Q1 outlook, we see similar sell-through trends across the specialty retail -- frankly, across channels. And I'll just note here that because of the inventory rebalancing impacts that we've mentioned in both the fourth quarter of 2022 and the first quarter of 2023, our sell-through performance is actually materially better than the sell-in, the net sales declines that you're seeing.

蘇珊，謝謝你的提問。因此，首先讓我說，在第四季度，銷售強勁，我們可以指出的一個第三方數據源是 NPD，在美國零售和 DTC 市場，Olaplex 的增長遠遠領先於該類別.當我們進入第一季度展望時，我們看到專業零售業有類似的銷售趨勢——坦率地說，跨渠道。我在這裡要指出的是，由於我們在 2022 年第四季度和 2023 年第一季度都提到了庫存再平衡的影響，我們的銷售表現實際上比銷售表現要好得多，淨你看到的銷售下降。

Great. And then maybe if you could talk about the performance of the dry shampoo. I know it's probably early days, but just curious, any early reads there? And then also other new products you have planned for the rest of the year? And then I'm curious, can you talk about maybe just the dollar impact you expect in the sell-in for -- from new products in 2023?

偉大的。然後也許你可以談談乾洗洗髮水的性能。我知道現在可能還處於早期階段，但很好奇，那裡有任何早期讀物嗎？還有您計劃在今年餘下時間推出的其他新產品嗎？然後我很好奇，你能談談你對 2023 年新產品的銷售預期的美元影響嗎？

Yes. Let me take that question. And I just want to preface, we don't break down what we are selling in, in terms of launches. But what we can tell you is, our -- every one of our launch is validated by trade data has been the #1 launch both in unit sales and dollar sales. So it was no different. Last year, No. 9 was indicated as a top revenue-generating SKU in terms of its launch for the haircare prestige category.

是的。讓我來回答這個問題。我只想做序，我們不會在發布方面分解我們銷售的產品。但我們可以告訴你的是，我們的每一次發布都經過貿易數據驗證，在單位銷售額和美元銷售額方面都是排名第一的。所以這沒什麼不同。去年，排名第 9 的高端護髮品類產品被評為創收最高的 SKU。

We've just launched dry shampoo, as you have seen, at the end of February, early March, exclusively with one Specialty Retailer, but also with our Pro channel. And that is the #1 dry shampoo in every one of those channels that we are launched in. So you can tell, again, when we put out a launch, it generally is the best in class because the world doesn't need another shampoo, doesn't need another dry shampoo. It has to deliver on what it says it does. And so we are very encouraged by the results, especially also by the -- proven by the ranking Hopefully, that answers your question. I apologize that we can't break it down for you as such as to what the sell-in is for the launch.

正如您所見，我們剛剛在 2 月底、3 月初推出了乾洗洗髮水，僅與一家專業零售商合作，但也與我們的專業渠道合作。這是我們推出的每個渠道中排名第一的干洗洗髮水。所以你可以再次告訴我們，當我們推出一款產品時，它通常是同類產品中最好的，因為世界不需要另一種洗髮水，不需要另一種干洗洗髮水。它必須兌現它所說的。因此，我們對結果感到非常鼓舞，尤其是 - 由排名證明，希望這能回答您的問題。很抱歉，我們無法為您詳細說明發布的銷售情況。

Yes, that's helpful. That sounds really good. And then lastly, if I could just add. I'm curious, so the professional channel, the first quarter guide is obviously pretty much more of a decline than what we saw in the fourth quarter. I know you have the inventory rebalancing. How much of that $25 million is in the salon channel? And then also beyond that, I guess, what's driving those worse expectations?

是的，這很有幫助。聽起來不錯。最後，如果我可以補充一下。我很好奇，所以專業頻道，第一季度的指南顯然比我們在第四季度看到的要下降得多。我知道你有庫存再平衡。這 2500 萬美元中有多少是在沙龍渠道？然後除此之外，我想，是什麼導致了那些更糟糕的期望？

Thank you. So we're not breaking out the magnitude of the inventory rebalancing across Specialty Retail and Pro. But I will just say again consistently here that the sell-through that we're seeing in the professional channel is better. The projection for that in the first quarter is better than the guide we've given on sell-in because of that inventory rebalancing. And it really is about all of the investments actions that JuE has mentioned throughout the call, some of which are directly focused on the professional channel and the Pro community. We expect those to take hold and they are taking hold now, but we expect them to have their fullest impact as the year progresses, and that's why we're calling out sequential improvement as the year progresses.

謝謝。因此，我們並沒有打破專業零售和專業領域庫存再平衡的規模。但我會在這裡始終如一地說，我們在專業渠道中看到的銷售情況更好。由於庫存重新平衡，第一季度的預測好於我們給出的銷售指南。這實際上是關於 JuE 在整個電話會議中提到的所有投資行動，其中一些直接針對專業渠道和專業社區。我們希望這些能夠站穩腳跟，而且現在正在站穩腳跟，但我們希望隨著時間的推移它們會產生最大的影響，這就是為什麼我們呼籲隨著時間的推移進行連續改進。

Our final questions will come from the line of Jonathan Keypour with Bank of America.

我們的最後一個問題將來自美國銀行的 Jonathan Keypour。

I guess I'm curious about -- so there's going to be this $25 million lap in 1Q, and there's the $10 million in pipeline. So it just looks like if you back out, if you try to normalize what 1Q looks like, it's still about a 23% to 25% decline, factoring in all of the seasonal kind of impacts. Is that sort of where we should think about the state of demand? Is that like basically down 25% is sort of what is happening to underlying demand? Is that sort of a fair magnitude, I guess?

我想我很好奇 - 所以第一季度會有 2500 萬美元的單圈，還有 1000 萬美元的管道。所以看起來如果你退出，如果你試圖使第一季度看起來正常化，它仍然會下降 23% 到 25%，考慮到所有季節性影響。這是我們應該考慮需求狀況的地方嗎？基本上下降 25% 是基本需求正在發生的事情嗎？我猜這是一個合理的幅度嗎？

Jon, it's Eric here. So that's exactly the right math when you back out the factors that we've disclosed related to inventory rebalancing and pipeline lapping. Of course, there are other factors, but doing the math that way is accurate. And I think you get to that range of that minus 23% to minus 25% in the first quarter. If you apply that same math to the balance of the year, you see how we get to the midpoint of our range with some modest sequential improvement leading up to this return to growth as we exit the year and go into 2024.

喬恩，我是埃里克。因此，當您排除我們披露的與庫存重新平衡和管道研磨相關的因素時，這正是正確的數學。當然，還有其他因素，但以這種方式計算是準確的。我認為你在第一季度達到了負 23% 到負 25% 的範圍。如果您將相同的數學方法應用於今年的餘額，您會看到我們如何通過一些適度的連續改進達到我們範圍的中點，從而導致我們在今年結束並進入 2024 年時恢復增長。

And fundamentally, that outlook is driven by the recent trends we've seen in consumer demand. Just keep in mind, we also believe we're lapping particularly tough comps in that prior year 2022 period, and we seek to build the momentum as we go.

從根本上說，這種前景是由我們在消費者需求中看到的近期趨勢驅動的。請記住，我們也相信我們在前一年的 2022 年期間取得了特別艱難的成績，並且我們尋求在前進的過程中建立勢頭。

Right. Right. Okay. And then you've called this a reset year. I agree. That's probably the right tack to take. I'm just wondering -- and there was a previous question about this, but is this a rebase year as well? Should we fundamentally kind of change maybe how we were thinking about what long-term growth and margins could look like? I mean it's just like I understand that things are going to have to come down based on the inventory rebalancing, but right, there seems to be also some degradation in consumption and then kind of an acknowledgment of a need to spend more behind the business to properly communicate and compete.

正確的。正確的。好的。然後你稱今年為重置年。我同意。這可能是正確的策略。我只是想知道——之前有一個關於這個的問題，但今年也是一個基準年嗎？我們是否應該從根本上改變我們對長期增長和利潤率的看法？我的意思是，這就像我理解的那樣，基於庫存重新平衡，事情將不得不減少，但是，消費似乎也有所下降，然後有點承認需要在企業背後投入更多資金適當的溝通和競爭。

I guess should we think about this as being a rebase where 3 to 5 years from now sales won't be able to be reaccelerated to where we thought they might have been able to go a year ago, and where margins are going to sit at a level comfortably lower than where we thought a year ago. Is that a fair thing -- a fair assessment to make?

我想我們是否應該將此視為一個調整基準，從現在起的 3 到 5 年內，銷售額將無法重新加速到我們認為一年前可能達到的水平，而利潤率將達到比我們一年前想像的水平低很多。這是一件公平的事情——做出公平的評估嗎？

So Jonathan, let me take this question first, and then I'll have Eric build on it. I just want to kind of clarify and really double click on this. The fundamentals of both the brand and the category is very strong. If you look at where Olaplex is, we are at our early innings, right? We are not fully penetrated in so many of our distribution and yet we are ranked #1. So there's a lot of opportunity for us. That's why we want to double-click on the sales and marketing, on the education as well as really looking at our Pro stylists. And then if you look at all of the international where we have room to play, we are not in the Middle East in a material way. We are not in Latin America in the material. We are not in Asia Pacific or Asia in a material way. Those are all runways for the brand.

所以 Jonathan，讓我先回答這個問題，然後我會讓 Eric 在此基礎上進行構建。我只是想澄清一下，然後真的雙擊它。品牌和類別的基本面都非常強大。如果你看看 Olaplex 在哪裡，我們就處於早期階段，對吧？我們沒有完全滲透到我們的許多發行版中，但我們排名第一。所以我們有很多機會。這就是為什麼我們要雙擊銷售和營銷、教育以及真正關注我們的專業造型師。然後，如果你看看我們有比賽空間的所有國際比賽，我們在物質方面並不在中東。我們在材料上不在拉丁美洲。我們在物質方面不在亞太地區或亞洲。這些都是品牌的跑道。

So I would not look at it as a rebase here. It's a reset year because what we want to do is continue to invest behind what we have already invested, which is technology, infrastructure, our capabilities in innovation and then double-click on the sales and marketing, the PRP, the education piece and our community building piece. All this would just get us to a stronger and better Olaplex. I want to turn it over to Eric because you also have some numbers questions that you want to clarify.

因此，我不會將其視為此處的變基。這是重置的一年，因為我們想做的是繼續投資我們已經投資的東西，即技術、基礎設施、我們的創新能力，然後雙擊銷售和營銷、PRP、教育部分和我們的社區建築作品。所有這一切只會讓我們變得更強大、更好的 Olaplex。我想把它交給埃里克，因為你也有一些數字問題想要澄清。

Absolutely. Thank you, JuE, and thank you for the question, Jonathan. The short term is important, but the long term is even more important, and that's what we're focused on. And I think you can appreciate the focus here has been on the reset for 2023 and repositioning ourselves to that return to growth. We're not in a position to give new numbers or reframing our medium-term outlook here. We will do so at the appropriate time. I will just say, we believe in the long-term outlook and potential for this business. And that we expect to be growing this business ahead of the global prestige category and returning to profit growth as well, and we'll bring more details when we can.

絕對地。謝謝你，JuE，也謝謝你提出的問題，Jonathan。短期很重要，但長期更重要，這就是我們關注的重點。而且我認為你可以理解這裡的重點是 2023 年的重置和重新定位以恢復增長。我們無法在此提供新的數字或重新制定我們的中期展望。我們會在適當的時候這樣做。我只想說，我們相信這項業務的長期前景和潛力。我們希望在全球聲望類別之前發展這項業務，並恢復利潤增長，我們會盡可能提供更多細節。

Okay. And then if I could have one more follow-up just on the distribution runway. You mentioned international and sort of the other kind of growth you guys could go into? It seems like the -- fixing up the U.S. is probably priority #1, at least in 2023. I'm just wondering if you could identify maybe some of the distribution opportunities you guys see in the states, and if you guys have taken kind of a different approach to where you are willing to play and where you're not willing to play those kinds of decisions you're making at this point?

好的。然後，如果我可以在分發跑道上再進行一次跟進。你提到了國際化和你們可以進入的其他類型的增長？看起來——修復美國可能是第一要務，至少在 2023 年是這樣。我只是想知道你們是否可以確定你們在各州看到的一些分銷機會，你們是否採取了善意的態度對你願意在哪裡玩以及你不願意在哪裡玩你此時做出的那些決定有不同的方法嗎？

So very quickly, Jonathan. If you look at 2023 in the U.S., we are only 15% penetrated at professional salons. That's a huge run rate. We are now just early innings with the key opinion leaders salons. So on the Pro side, there's tremendous opportunity for us. Our penetration at Sephora and Ulta are still very small. In the case of Sephora, we have been steadily growing, but in Ulta, it's just year one going into our year two, and yet we are a top ranking hair care brand. So there's a lot of opportunities in the U.S., in North America alone. And so if we focus on what we have going deeper, we will win.

很快，喬納森。如果你看看 2023 年的美國，專業沙龍的普及率只有 15%。這是一個巨大的運行率。我們現在只是關鍵意見領袖沙龍的早期階段。所以在專業方面，我們有巨大的機會。我們在絲芙蘭和 Ulta 的滲透率仍然很小。就絲芙蘭而言，我們一直在穩步增長，但在 Ulta，這只是我們的第一年和第二年，但我們是排名第一的護髮品牌。因此，僅在北美，美國就有很多機會。因此，如果我們專注於更深入的領域，我們就會獲勝。

We have reached the end of...

我們已經到了...的盡頭

No, no. Go ahead, operator.

不，不。來吧，接線員。

We have reached the end of our question-and-answer session. I would now like to turn the call back over to you for closing remarks.

我們的問答環節已經結束。我現在想把電話轉回給您，請您作結束語。

Yes. Thank you so much, everyone, for joining us, and hope to see you again in our next earnings call. Bye.

是的。非常感謝大家加入我們，並希望在我們的下一次財報電話會議上再次見到您。再見。

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路。享受你剩下的一天。