Revolve Group Inc (RVLV) 2023 Q4 法說會逐字稿

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Revolve's Fourth Quarter and Full Year 2023 Results Conference Call. (Operator Instructions)

午安.我叫羅布，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Revolve 2023 年第四季和全年業績電話會議。（操作員說明）

At this time, I'd like to turn the conference over to Erik Randerson, Vice President of Investor Relations at Revolve. Thank you. You may begin.

這次，我想將會議交給 Revolve 投資者關係副總裁 Erik Randerson。謝謝。你可以開始了。

Good afternoon, everyone, and thanks for joining us to discuss Revolve's fourth quarter and full-year 2023 results. Before we begin, I'd like to mention that we have posted a presentation containing Q4 and full year financial highlights, to our Investor Relations website located at investors.revolve.com.

大家下午好，感謝您加入我們討論 Revolve 第四季和 2023 年全年業績。在開始之前，我想提一下，我們已在投資者關係網站 Investors.revolve.com 上發布了包含第四季度和全年財務亮點的簡報。

I would also like to remind you that this conference call will include forward-looking statements, including statements related to our future growth, our inventory balance, our key priorities for 2024, including related investments, product category expansion, cost saving measures, international expansion and technology enhancements, our marketing events, our partnerships and our outlook for net sales, gross margin, operating expenses and effective tax rate. These statements are subject to various risks, uncertainties and assumptions that could cause our actual results to differ materially from these statements, including the risks mentioned in this afternoon's press release, as well as other risks and uncertainties disclosed under the caption Risk Factors and elsewhere in our filings with the Securities and Exchange Commission, including, without limitation, our quarterly report on Form 10-Q for the quarter ended September 30, 2023, and in our annual report on Form 10-K for the year ended December 31, 2023, which we expect to file with the SEC on February 27, 2024, all of which can be found on our website at investors.revolve.com.

我還想提醒您，本次電話會議將包含前瞻性陳述，包括與我們未來成長、我們的庫存平衡、我們2024年的主要優先事項有關的陳述，包括相關投資、產品類別擴展、成本節約措施、國際擴張和技術改進、我們的行銷活動、我們的合作夥伴關係以及我們對淨銷售額、毛利率、營運費用和有效稅率的展望。這些陳述受到各種風險、不確定性和假設的影響，這些風險、不確定性和假設可能導致我們的實際結果與這些陳述有重大差異，包括今天下午的新聞稿中提到的風險，以及在風險因素標題下和其他地方披露的其他風險和不確定性。我們向美國證券交易委員會提交的文件，包括但不限於我們截至2023 年9 月30 日的季度的10-Q 表格季度報告，以及截至2023 年12 月31 日的年度10-K 表格的年度報告，我們預計於 2024 年 2 月 27 日向 SEC 提交，所有文件均可在我們的網站 Investors.revolve.com 上找到。

We undertake no obligation to revise or update any forward-looking statements or information except as required by law. During our call today, we'll also reference certain non-GAAP financial information, including adjusted EBITDA and free cash flow. We use non-GAAP measures in some of our financial discussions as we believe they provide valuable insights on our operational performance and underlying operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. And our non-GAAP measures may be different from non-GAAP measures used by other companies.

除法律要求外，我們不承擔修改或更新任何前瞻性陳述或資訊的義務。在今天的電話會議中，我們還將參考某些非公認會計準則財務信息，包括調整後的 EBITDA 和自由現金流。我們在一些財務討論中使用非公認會計準則衡量標準，因為我們相信它們為我們的營運績效和基本營運績效提供了寶貴的見解。本非 GAAP 財務資訊的呈現不應被孤立地考慮，也不能被視為替代或優於根據 GAAP 準備和呈現的財務資訊。我們的非公認會計準則衡量標準可能與其他公司使用的非公認會計準則衡量標準不同。

Reconciliations of non-GAAP measures to GAAP measures as well as the definitions of each measure, their limitations and our rationale for using them can be found in this afternoon's press release and in our SEC filings. Joining me on the call today are our Co-Founders and Co-CEOs, Mike Karanikolas and Michael Mente; as well as Jesse Timmermans, our CFO. Following our prepared remarks, we'll open the call for your questions.

非 GAAP 衡量標準與 GAAP 衡量標準的調整以及每項衡量標準的定義、其局限性以及我們使用它們的理由可以在今天下午的新聞稿和我們向 SEC 提交的文件中找到。今天加入我的電話會議的是我們的共同創辦人兼聯合執行長 Mike Karanikolas 和 Michael Mente；以及我們的財務長傑西·蒂默曼斯 (Jesse Timmermans)。在我們準備好的發言之後，我們將開始電話詢問您的問題。

With that, I'll turn it over to Mike.

有了這個，我會把它交給麥克。

Hello, everyone, and thanks for joining us today. We ended a challenging year in 2023 with a solid fourth quarter, highlighted by a return to growth in the Revolve segment, a year-over-year increase in our consolidated gross margin and encouraging early progress in our efforts to drive efficiencies in our global logistics operations. I'll start by briefly discussing highlights for our fourth quarter results before shifting to the full-year 2023 and closing with our key priorities for 2024.

大家好，感謝您今天加入我們。We ended a challenging year in 2023 with a solid fourth quarter, highlighted by a return to growth in the Revolve segment, a year-over-year increase in our consolidated gross margin and encouraging early progress in our efforts to drive efficiencies in our global logistics營運.我將首先簡要討論我們第四季度業績的亮點，然後轉向 2023 年全年，並以 2024 年的主要優先事項作為結束語。

Net sales were $258 million in the fourth quarter, a decrease of 1% year-over-year and a slight improvement from the 4% decline in the third quarter of 2023. US net sales decreased 2% and were outpaced by international net sales increasing 7% year-over-year. Our international gains were highlighted by exceptional growth in Mexico and improved year-over-year growth in Europe and the UK, partially offset by declining sales in China and the Middle East.

第四季淨銷售額為2.58億美元，年減1%，較2023年第三季4%的降幅略有改善。美國淨銷售額下降 2%，但國際淨銷售額較去年同期成長 7%。我們的國際收益主要體現在墨西哥的出色成長以及歐洲和英國年成長的改善，但部分被中國和中東銷售額的下降所抵消。

By segment, REVOLVE net sales increased 1% year-over-year in the fourth quarter, our first year-over-year increase in four quarters. FWRD net sales decreased 10% year-over-year, consistent with external reports from the luxury sector. As a relevant benchmark, Earnest Analytics reported that its credit card data reflects a 10% year-over-year decrease in luxury apparel spending by US consumers during the holiday season.

按細分市場劃分，REVOLVE第四季淨銷售額年增1%，這是四季以來首次年增。FWRD 淨銷售額年減 10%，與奢侈品產業的外部報告一致。作為相關基準，Earnest Analytics 報告稱，其信用卡數據顯示美國消費者在假期季節的奢侈服裝支出比去年同期下降了 10%。

Now, moving below the revenue line. As a testament to our progress in rebalancing our inventory, our gross margin expanded to 52.0% in the fourth quarter, representing our first year-over-year increase in gross margin in six quarters. And with our inventory dynamics now in a very good place, in early 2024 we are back to year-over-year growth in receipts of new inventory for the REVOLVE Segment.

現在，移動到收入線以下。第四季毛利率擴大至 52.0%，這是我們六個季度以來毛利率首次同比增長，證明了我們在庫存再平衡方面取得的進展。由於我們的庫存動態目前處於非常好的狀態，到 2024 年初，我們的 REVOLVE 細分市場新庫存收入將恢復年成長。

Net income for the fourth quarter was $3.5 million, or $0.05 per diluted share, and adjusted EBITDA was $9 million. As expected, both profitability measures declined year-over-year.

第四季淨利為 350 萬美元，或攤薄後每股收益 0.05 美元，調整後 EBITDA 為 900 萬美元。如預期，兩項獲利指標均較去年同期下降。

I will now shift to a review of our performance and accomplishments for the full-year 2023 before briefly touching on our key areas of focus for the coming year. From day one, Michael and I have approached the business with the customer at the center of everything we do. Even through a very challenging year, we continued to deliver an exceptional experience to our customer base of 2.5 million active customers, increasing our already exceptional customer satisfaction score by more than a full point year-over-year. Our active customers grew 9% year-over-year and we see a huge opportunity for further expansion, in the U.S and overseas.

我現在將回顧我們 2023 年全年的業績和成就，然後簡要地談談我們來年的重點關注領域。從第一天起，麥可和我就以客戶為中心開展業務。儘管經歷了充滿挑戰的一年，我們仍繼續為 250 萬活躍客戶的客戶群提供卓越的體驗，使我們本已出色的客戶滿意度評分同比提高了整整一個百分點以上。我們的活躍客戶年增 9%，我們看到了在美國和海外進一步擴張的巨大機會。

And, importantly, we drove a year-over-year decrease in our average cost to acquire customers in 2023. We believe the reduced CAC illustrates the strength of our brand and execution by our team in optimizing spend across channels and audiences within a competitive environment.

重要的是，我們在 2023 年推動了獲取客戶的平均成本年減。我們相信，CAC 的減少反映了我們的品牌實力以及我們團隊在競爭環境中優化跨通路和受眾支出的執行力。

Now, shifting to our top line results. Net sales in 2023 were $1.1 billion, a decline of 3% year-over-year, despite the healthy growth in active customers. Our customer demographic faced increased macro pressures in 2023, which we believe contributed to the normalization of spending levels from the significant apparel spending in 2021 and 2022 coming out of COVID lockdowns.

現在，轉向我們的頂線結果。儘管活躍客戶健康成長，但 2023 年淨銷售額為 11 億美元，年減 3%。2023 年，我們的客戶群面臨更大的宏觀壓力，我們認為，由於新冠疫情封鎖，2021 年和 2022 年服裝支出大幅增加，這有助於支出水準正常化。

The normalization of purchases by our customers in 2023 is also evident in a key net sales retention metric. Recall that once a year we disclose the revenue retention from our prior-year cohorts, defined as the revenue retention rate from the previous year for all existing customers who had purchased from us in a prior year.

2023 年客戶購買的正常化在關鍵的淨銷售保留指標中也很明顯。回想一下，我們每年都會揭露上一年群組的收入保留率，定義為去年從我們這裡購買的所有現有客戶的上一年收入保留率。

Since this retention metric has experienced significant variability in the past four years for obvious reasons, we believe it is important to look past the peaks and valleys. In 2023, active customers placed an average of 3.42 orders, which is 8% higher than in 2019. Also importantly, the average of our cohort net sales retention rates reported over the past four years is 92%, which is higher than our 89% net sales retention rate reported in 2019.

由於顯而易見的原因，這項保留指標在過去四年中經歷了顯著的變化，因此我們認為超越高峰和低谷非常重要。2023年，活躍客戶平均下訂單量為3.42個，較2019年成長8%。同樣重要的是，過去四年報告的同類群組淨銷售保留率的平均值為 92%，高於 2019 年報告的 89% 的淨銷售保留率。

Looking at the category performance. While the net sales of dresses, our largest category, was pressured in 2023 after increasing nearly 50% in 2022 and expanding at an even faster rate in 2021. I am excited by our progress in emerging categories. Our emerging areas of beauty, men’s and home collectively increased by more than 20% in 2023, further validating our opportunity to expand our share of wallet and helping to offset the 5% decline in net sales from dresses.

從品類表現來看。而我們最大的品類－洋裝的淨銷售額在2022年成長近50%並在2021年以更快的速度擴張後，在2023年面臨壓力。我對我們在新興領域的進展感到興奮。2023 年，我們的美容、男裝和家居等新興領域總體增長了 20% 以上，進一步驗證了我們擴大錢包份額的機會，並有助於抵消連身裙淨銷售額 5% 的下降。

We executed very well on a primary goal we set for 2023: to rebalance our inventory for growth and efficiency. Successful execution of this initiative helped to drive a meaningfully higher mix of net sales at full price in the second half of 2023 when compared to how we started the year. This sets us up well entering 2024.

我們很好地實現了 2023 年設定的主要目標：重新平衡庫存以實現成長和效率。與年初相比，這項措施的成功執行有助於推動 2023 年下半年全價淨銷售額大幅成長。這讓我們為進入 2024 年做好了準備。

And we continue to operate profitably and generate significant cash flow. While we are not satisfied with our adjusted EBITDA margin in 2023, our profitable and cash generative business remains a key competitive advantage. In 2023, we generated $43 million in operating cash flow and $39 million in free cash flow, an increase of 85% and 114%, respectively. Our consistent cash flow generation gives us the capacity to invest throughout the cycle at a time when many peers have no choice but to significantly reduce investment.

我們繼續獲利營運並產生大量現金流。雖然我們對 2023 年調整後的 EBITDA 利潤率並不滿意，但我們的獲利和現金產生業務仍然是關鍵的競爭優勢。2023年，我們產生了4,300萬美元的營運現金流和3,900萬美元的自由現金流，分別成長了85%和114%。當許多同行別無選擇只能大幅減少投資時，我們持續產生的現金流使我們有能力在整個週期內進行投資。

Our strong cash flow has further strengthened our balance sheet with $245 million in cash at year end 2023, even while investing $31 million in stock repurchases during the year to enhance shareholder value. Our cash position has increased by nearly 4x compared to the $65 million in cash on our balance sheet at year end 2019.

我們強勁的現金流量進一步強化了我們的資產負債表，截至 2023 年底，我們的現金為 2.45 億美元，同時我們在年內投資了 3,100 萬美元用於股票回購，以提高股東價值。與 2019 年底資產負債表上的 6,500 萬美元現金相比，我們的現金部位增加了近 4 倍。

Finally, we meaningfully advanced our technology and personalization capabilities during 2023, further elevating the customer experience. Leveraging AI, we significantly improved the recommendation of similar items using visual images, expanding conversion opportunities and further elevating our navigation for customers. Driving continuous improvement in personalization and site navigation is particularly important since we offer a broad assortment of more than 100,000 styles at any given time.

最後，我們在 2023 年有意義地提升了我們的技術和個人化能力，進一步提升了客戶體驗。利用人工智慧，我們使用視覺圖像顯著改進了類似商品的推薦，擴大了轉換機會，並進一步提升了我們對客戶的導航。推動個人化和網站導航的持續改進尤其重要，因為我們在任何給定時間都提供超過 100,000 種樣式的廣泛分類。

I will wrap up with a discussion of our key priorities for 2024, which are aligned with our focus on maximizing value over the long term. First, we will continue to efficiently invest to expand our brand awareness, grow our customer base and strengthen the connection with the next generation consumer. Michael will talk about our brand building initiatives in his remarks.

最後，我將討論我們 2024 年的關鍵優先事項，這些優先事項與我們對長期價值最大化的關注是一致的。首先，我們將持續有效投資，擴大品牌知名度，擴大客戶群，並加強與下一代消費者的連結。麥可將在演講中談論我們的品牌建立舉措。

Second, we will continue to build on the successful expansion of our assortment into adjacent product categories. We have earned our customers’ trust through the strength of our brands, platform, product curation and our excellent customer experience. The impressive growth of our beauty and men’s businesses in 2023 validates our ability to tap into this customer loyalty and trust to drive adoption in emerging categories.

其次，我們將繼續在我們的產品系列成功擴展到鄰近產品類別的基礎上繼續發展。我們憑藉品牌、平台、產品規劃和卓越的客戶體驗的優勢贏得了客戶的信任。2023 年，我們的美容和男士業務取得了令人矚目的成長，證明了我們有能力利用客戶的忠誠度和信任來推動新興類別的採用。

Third, we remain extremely committed to driving cost efficiencies within our global shipping and logistics operations while maintaining a laser focus on our outstanding customer experience. In 2023, we successfully ramped our newer east coast fulfillment center that brings us closer to many of our customers, which we believe will enable us to realize further cost savings and elevate service levels through shorter shipping distances. Supported by a new AI technology application that strategically optimizes inventory rebalancing between our fulfillment centers to match consumer demand, among many other initiatives, I am confident that in 2024 we will begin to drive efficiencies in our logistics costs year-over-year.

第三，我們仍然極為致力於提高全球航運和物流業務的成本效率，同時高度關注我們卓越的客戶體驗。2023 年，我們成功擴大了新的東海岸履行中心，使我們與許多客戶的距離更加緊密，我們相信這將使我們能夠透過更短的運輸距離進一步節省成本並提高服務水準。在新的人工智慧技術應用程式的支持下，策略性地優化我們的履行中心之間的庫存再平衡，以滿足消費者的需求，以及許多其他舉措，我相信到2024 年，我們將開始逐年提高物流成本的效率。

Fourth, we will further expand our international presence, where we see exciting opportunities to invest in our customer acquisition and in further elevating service levels to drive growth. We recently launched a new marketing communications channel in Mexico that has helped us to increase consumer engagement and drive even faster new customer growth in what is now our third largest market outside of the US

第四，我們將進一步擴大我們的國際業務，我們看到了投資於客戶獲取和進一步提高服務水準以推動成長的令人興奮的機會。我們最近在墨西哥推出了一個新的行銷傳播管道，幫助我們提高了消費者的參與度，並在目前我們除美國以外的第三大市場上推動了更快的新客戶成長

Finally, we will further enhance our technology stack and leverage AI and other technologies across the business to drive growth and efficiency. Michael and I are huge believers in the power of AI. Since day one, we have leveraged our own proprietary technology to run nearly all aspects of our business, delivering capital efficiency that is highlighted by our capital expenditures averaging only 0.6% of our net sales since 2016. We believe our data-driven mindset and culture of technology innovation positions us well to continue to expand the use of AI technology throughout the organization to drive results.

最後，我們將進一步增強我們的技術堆疊，並在整個業務中利用人工智慧和其他技術來推動成長和效率。麥可和我都堅信人工智慧的力量。自第一天起，我們就利用自己的專有技術來經營業務的幾乎所有方面，實現了資本效率，自2016 年以來，我們的資本支出平均僅佔淨銷售額的0.6%，這凸顯了資本效率。我們相信，我們的數據驅動思維和技術創新文化使我們能夠繼續在整個組織中擴大人工智慧技術的使用，以推動成果。

To summarize, we have an unwavering focus on driving profitable growth and market share capture in the years ahead. Like many companies, we continue to face a host of challenges in the current environment and we have a lot of work to do. But in contrast to most fashion e-commerce peers, we have a profitable and cash generative business, proven financial discipline, and key competitive advantages that together enable us to confidently invest in the large opportunity ahead of us.

總而言之，我們堅定不移地致力於在未來幾年推動利潤成長和佔領市場份額。與許多公司一樣，我們在當前環境下繼續面臨許多挑戰，我們還有很多工作要做。但與大多數時尚電子商務同行相比，我們擁有盈利且能產生現金的業務、經過驗證的財務紀律以及關鍵的競爭優勢，這些共同使我們能夠自信地投資於面前的巨大機遇。

I would like to thank our talented and passionate team for their incredible efforts, persistence and innovation that reinforces my confidence in our future.

我要感謝我們才華洋溢、充滿熱情的團隊，他們的努力、堅持和創新增強了我對未來的信心。

Now, over to Michael.

現在，轉向邁克爾。

Thanks, Mike, and hello everyone. As I reflect on 2023, I am proud of our team for overcoming a variety of headwinds to deliver profitability and significant cash flow that further strengthened our balance sheet. We continued to build our brands through innovative and impactful marketing strategies, in the US and overseas. These marketing efforts helped us to increase our active customer base by 9% in 2023, while even further raising the bar on our already outstanding service levels. And customer trust in our brands and delight in our shopping experience helped us to successfully expand into emerging product categories, an exciting long-term opportunity.

謝謝麥克，大家好。當我回顧 2023 年時，我為我們的團隊克服各種阻力，實現盈利和大量現金流而感到自豪，進一步增強了我們的資產負債表。我們繼續透過創新和有影響力的行銷策略在美國和海外打造我們的品牌。這些行銷工作幫助我們在 2023 年將活躍客戶群增加了 9%，同時進一步提高了我們本已出色的服務水準。客戶對我們品牌的信任和對我們購物體驗的滿意幫助我們成功擴展到新興產品類別，這是一個令人興奮的長期機會。

Most important is that we continue to invest and innovate throughout the company to strengthen our foundation for future growth, which we remain very confident in. I am excited to continue the momentum in these areas this year.

最重要的是，我們在整個公司範圍內繼續進行投資和創新，以鞏固我們未來成長的基礎，對此我們仍然充滿信心。我很高興今年能夠在這些領域繼續保持這一勢頭。

Shifting to the industry landscape. Since our third quarter earnings call in November, there has been a lot happening in our space, particularly among luxury e-commerce peers. Two of the larger luxury ecommerce retailers were recently acquired in distressed buyouts and there is another large luxury e-commerce competitor listed as a discontinued operation by its parent company. And as reported by the Wall Street Journal, Business of Fashion and WWD, there have also been reports of luxury retailers not paying their brand partners on time.

轉向產業格局。自 11 月召開第三季財報電話會議以來，我們的領域發生了很多事情，特別是在奢侈品電子商務同行中。兩家較大的奢侈品電子商務零售商最近在困境中被收購，還有一家大型奢侈品電子商務競爭對手被其母公司列為停產業務。根據《華爾街日報》、《時尚商業》和《WWD》報道，也有報道稱奢侈品零售商沒有按時向其品牌合作夥伴付款。

While these recent industry headlines may worry some investors, we are excited about the opportunity for us to benefit from industry turmoil. For instance, a major luxury brand group has already announced they will no longer sell their products through one of the e-commerce peers I referred to. As a profitable company with consistent cash flow generation and focused on creating value over the long term, we believe we are well positioned to emerge as an even stronger player. Our 20-year history has taught us that periods of market disruption can be a great time for us to invest when some others in the space are forced to retrench.

雖然最近的這些行業頭條新聞可能會讓一些投資者感到擔憂，但我們對有機會從行業動盪中受益感到興奮。例如，一家主要奢侈品牌集團已經宣布，他們將不再透過我提到的電子商務同行之一銷售其產品。作為一家盈利的公司，擁有持續的現金流生成並專注於長期創造價值，我們相信我們有能力成為一個更強大的參與者。我們 20 年的歷史告訴我們，當該領域的其他一些公司被迫緊縮開支時，市場動盪時期可能是我們投資的好時機。

With that as a backdrop, I will focus my remarks on our strategy to leverage our financial strength and position in the market to invest in our brand, acquire customers and gain market share over the long term.

在此背景下，我將重點討論我們的策略，即利用我們的財務實力和市場地位來投資我們的品牌、獲取客戶並獲得長期市場份額。

With the large market opportunity that we believe lies ahead of us, continuing to invest in our core domestic customer remains our number one priority. A highlight of our fourth quarter was the opening of our brand elevating REVOLVE and FWRD Pop Up shopping experience in Aspen, just in time for the holidays. Launched with a private event hosted by our FWRD Creative Director, Kendall Jenner, we have created something truly special in an aspirational town with a high concentration of wealth. Aspen is also a celebrity hotspot and a nightlife fashion playground where everyone dresses to impress. The REVOLVE and FWRD Pop Up was prominently featured in Vogue’s ranking of the top five designer popups to visit this winter, the only multi-brand retailer featured among iconic luxury brands like Louis Vuitton. And people are visiting and spending while they are there. Foot traffic for the first two months of operation has been impressive, highlighted by appearances from A-listers including Rihanna, Mariah Carey, Lori Harvey, Alessandra Ambrosio, Stella Maxwell, brand partner and snowboarder Shaun White, and featuring experiential events co-hosted by coveted brand partners including Miu Mui, Charlotte Tilbury, Jonathan Simkhai, Rhude, Eterne, and Nour Hammour.

我們相信巨大的市場機會就在我們面前，繼續投資我們的核心國內客戶仍然是我們的首要任務。我們第四季的一大亮點是我們的品牌在阿斯彭開業，提升了 REVOLVE 和 FWRD 快閃購物體驗，正好趕上假期。我們在 FWRD 創意總監 Kendall Jenner 主持的私人活動中推出了這項活動，在這座財富高度集中的理想小鎮上創造了一些真正特別的東西。阿斯本還是名人聚集地和夜生活時尚遊樂場，每個人的穿著都讓人印象深刻。REVOLVE 和FWRD 快閃店在《Vogue》雜誌今年冬季最值得參觀的五名設計師快閃店排名中佔據顯著位置，也是唯一一家以路易威登等標誌性奢侈品牌為特色的多品牌零售商。人們在那裡參觀和消費。開業前兩個月的客流量令人印象深刻，其中包括蕾哈娜(Rihanna)、瑪麗亞·凱莉(Mariah Carey)、洛里·哈維(Lori Harvey)、亞歷山大·安布羅休(Alessandra Ambrosio )、斯特拉·麥克斯韋(Stella Maxwell)、品牌合作夥伴兼滑雪運動員肖恩·懷特(Shaun White) 等一線明星的亮相，以及與令人垂涎的品牌合作夥伴包括Miu Mui、Charlotte Tilbury、Jonathan Simkhai 、Rhude、Eterne 和Nour Hammour。

Also exciting is that the Pop Up is our first true integration of our highly complementary segments, REVOLVE and FWRD, under the same roof. In addition to the brand integration that is consistent with our growth strategy, consumer demand at the Pop Up is highlighting our opportunity to further expand into adjacent seasonal categories where our brands are not top-of-mind, such as outerwear, and across a broader range of price points, from beauty products at $25 to handbags of nearly $100,000.

同樣令人興奮的是，Pop Up 是我們在同一屋簷下首次真正整合高度互補的細分市場 REVOLVE 和 FWRD。除了符合我們成長策略的品牌整合外，快閃店的消費者需求凸顯了我們有機會進一步擴展到鄰近的季節性類別，在這些類別中，我們的品牌並不是最受關注的，例如外套，以及更廣泛的領域。價位範圍廣泛，從 25 美元的美容產品到近 10 萬美元的手袋。

Most compelling is the customer engagement in our Aspen Pop Up. More than half of all customers at the pop up are entirely new customers to our brands, reinforcing our opportunity to grow our customer base. And our existing customers and fans have been thrilled to experience and interact with our brands in real life. Customers are spending significantly more per transaction in the Aspen pop-up than they typically do online, while returning products at a very small fraction of our typical return rate for products purchased online. So, we are very pleased with the learnings from the pop-up so far. If you are in Aspen in the coming weeks, please stop by and see us.

最引人注目的是我們的阿斯彭快閃店中的客戶參與度。快閃店中超過一半的客戶都是我們品牌的全新客戶，這增強了我們擴大客戶群的機會。我們現有的客戶和粉絲很高興能夠在現實生活中體驗我們的品牌並與之互動。客戶在阿斯彭快閃店的每筆交易花費比他們通常在網上支付的費用要高得多，而退貨率只是我們在線購買產品的典型退貨率的一小部分。因此，我們對迄今為止從彈出窗口中學到的東西感到非常滿意。如果您在未來幾週內來到阿斯彭，請順便過來看看我們。

As we look ahead, we have some very exciting plans for further investment in our brands in 2024, including a fresh take on our experiential marketing events that we are known for as well as some impactful partnerships in the works that we will be able to share more details on in the coming months.

展望未來，我們有一些非常令人興奮的計劃，將在2024 年進一步投資我們的品牌，包括對我們聞名的體驗式行銷活動進行全新的嘗試，以及我們將能夠分享的一些有影響力的合作夥伴關係更多細節將在未來幾個月內公佈。

In addition to the large domestic opportunity, we continue to see a very large opportunity to further expand our share in international markets. In recent months, we have been incredibly active in elevating our brands with aspirational lifestyle events around the globe in key regions including Tokyo, Singapore and the Netherlands, creating brand heat and excitement on social media and press channels coinciding with a solid quarter for international net sales growth in Q4.

除了巨大的國內機會外，我們還繼續看到進一步擴大我們在國際市場份額的巨大機會。近幾個月來，我們在東京、新加坡和荷蘭等關鍵地區舉辦了一系列令人嚮往的生活方式活動，非常積極地提升我們的品牌，在社交媒體和新聞管道上創造品牌熱度和興奮度，同時國際網路季度表現強勁。第四季銷售成長。

One reason we chose to activate in Asia during the fourth quarter is that Asia has our largest social media following outside of the US It’s a true testament to the strength of our brands globally, especially considering that we have not yet made significant investments in the region. Drilling into the details by country, China has our second largest social media following after the , underscoring our opportunity for future growth in Asia.

我們選擇在第四季度在亞洲開展業務的原因之一是，亞洲擁有我們在美國以外最大的社交媒體粉絲，這真正證明了我們品牌在全球的實力，特別是考慮到我們尚未在以下領域進行重大投資：該區域。按國家/地區詳細分析，中國擁有僅次於 的第二大社群媒體，凸顯了我們在亞洲未來成長的機會。

For our recent marketing events in Singapore and Tokyo, content creators were beyond excited to work with us in international markets, collectively delivering more content than we expected of them and contributing to the success of our largest-ever marketing event in Asia. Influencers enthusiastically traveled from China, Taiwan, India, Korea, Australia, Vietnam, Malaysia, Philippines, Europe, Canada and the US to participate in our events. Their collective social following exceeds 100 million followers on Instagram on a combined basis.

對於我們最近在新加坡和東京舉行的行銷活動，內容創作者非常高興能與我們在國際市場上合作，共同提供比我們預期更多的內容，並為我們在亞洲有史以來最大的營銷活動的成功做出了貢獻。來自中國、台灣、印度、韓國、澳洲、越南、馬來西亞、菲律賓、歐洲、加拿大和美國的影響者熱情地參與我們的活動。他們在 Instagram 上的集體社交粉絲總數超過 1 億人。

Of note, nearly half of the hundreds of millions of social media impressions generated by our Singapore marketing event were on native Chinese social media platforms including Douyin, Red, Weibo and WeChat. In fact, three of the top Chinese influencers generated 30 million views on Douyin alone. It has become a very important part of our international strategy to expand our presence and awareness on these Chinese social media and e-commerce platforms that have a very powerful influence on Asian consumers. I couldn’t be more pleased with how well our Singapore event delivered against this objective.

值得注意的是，我們的新加坡行銷活動產生的數億社群媒體印像中有近一半來自中國本土社群媒體平台，包括抖音、小紅書、微博和微信。事實上，中國三位頂級影響者僅在抖音上的瀏覽量就達到了 3000 萬次。擴大我們在這些對亞洲消費者俱有強大影響力的中國社交媒體和電子商務平台上的影響力和知名度，已成為我們國際策略的一個非常重要的組成部分。我對我們的新加坡活動在實現這一目標方面的出色表現感到非常滿意。

I’ll close with a discussion of our investment in emerging product categories, an area where we see a great deal of opportunity to both acquire new customers and capture more share of our existing customers’ wallet. Beauty net sales increased 49% year-over-year in the fourth quarter, expanding to 5% of net sales from 3% in the fourth quarter of 2022. Even with such gains year-over-year, 5% of net sales remains well below the double-digit penetration for Beauty net sales that is typical among premium department stores. Contributing to our incredible beauty results was very effective merchandising with the addition of several high impact new beauty brands. Our beauty momentum has remained strong with recent launches of beauty brands including Tarte Cosmetics, Off-White Beauty and Dundas Beauty.

最後，我將討論我們對新興產品類別的投資，我們在這一領域看到了巨大的機會，既可以獲得新客戶，又可以從現有客戶的錢包中獲得更多份額。第四季美容淨銷售額年增 49%，佔淨銷售額的比例從 2022 年第四季的 3% 擴大到 5%。即使同比增長如此，5% 的淨銷售額仍遠低於高端百貨商店中常見的美容淨銷售額兩位數滲透率。非常有效的行銷手段為我們帶來了令人難以置信的美容效果，其中增加了幾個高影響力的新美容品牌。我們的美容動能依然強勁，最近推出了 Tarte Cosmetics、Off-White Beauty 和 Dundas Beauty 等美容品牌。

I am also excited about our fast-growing Men’s business, supported by an increased marketing focus and merchandise assortment. Men’s has performed extremely well in some key international markets, contributing to our impressive growth in Mexico throughout 2023.

我也對我們快速成長的男裝業務感到興奮，這得益於行銷重點和商品種類的增加。男裝在一些主要國際市場表現極為出色，為我們在 2023 年在墨西哥的令人印象深刻的成長做出了貢獻。

While relatively small today, the scale of these areas of business are growing at an attractive rate. Beauty generated $42 million in net sales in 2023, up from just $11 million in 2019. We are targeting for the emerging offerings of Beauty, Men’s and Home to contribute more than $100 million in 2024 on a combined basis.

雖然目前規模相對較小，但這些業務領域的規模正在以極具吸引力的速度成長。2023 年，美妝淨銷售額達 4,200 萬美元，而 2019 年僅 1,100 萬美元。我們的目標是，到 2024 年，美容、男士和家居等新興產品的綜合貢獻將超過 1 億美元。

And this expectation does not include contributions from our plan to expand into additional apparel categories this year to further solidify us as the destination for more aspects of our customers’ lives, supported by marketing initiatives to increasingly emphasize newer categories where we see opportunity.

這一預期不包括我們今年計劃擴展到更多服裝類別的貢獻，以進一步鞏固我們作為客戶生活更多方面的目的地的地位，並通過營銷舉措來支持，以越來越多地強調我們看到機會的新類別。

In closing, with the strength of our brand, our strong financial position, our fast paced and nimble operating structure, and our innovative, entrepreneurial mindset, we believe we are well positioned to take market share in the years ahead and build a larger and more powerful collection of brands than we have today. We remain incredibly excited about what lies ahead of us this year and for many years beyond.

最後，憑藉我們的品牌實力、強大的財務狀況、快節奏、靈活的營運結構以及創新創業思維，我們相信我們有能力在未來幾年佔據市場份額，並建立一個更大、更比我們今天擁有的更強大的品牌集合。我們對今年以及未來許多年即將發生的事情仍然感到非常興奮。

Now, I will turn it over to Jesse for a discussion of the financials.

現在，我將把它交給傑西討論財務問題。

Thanks, Michael, and hello everyone. I’ll start by recapping our fourth quarter results and then close with updates on recent trends in the business and commentary on our cost structure for 2024.

謝謝邁克爾，大家好。我將首先回顧我們第四季度的業績，然後以最新業務趨勢的更新以及 2024 年成本結構的評論作為結束。

Starting with the fourth quarter results. Net sales were $258 million, a year-over-year decrease of 1%, and a 3-point improvement from our comparison in the third quarter of 2023 as we continue to navigate a challenging environment for consumer discretionary spending, particularly in our luxury segment. REVOLVE segment net sales increased 1% and FWRD segment net sales decreased 10% year-over-year in the fourth quarter. By territory, domestic net sales decreased 2% and international net sales increased 7% year-over-year.

從第四季的業績開始。淨銷售額為2.58 億美元，年減1%，與2023 年第三季的比較相比提高了3 個百分點，因為我們繼續應對非必需消費品支出的充滿挑戰的環境，特別是在我們的奢侈品領域。第四季度，REVOLVE 部門淨銷售額年增 1%，FWRD 部門淨銷售額年減 10%。按地區劃分，國內淨銷售額較去年同期下降 2%，國際淨銷售額較去年同期成長 7%。

Active Customers, which is a trailing 12-month measure, increased by 33,000 customers during the fourth quarter. This growth expanded our active customer count to 2.5 million, an increase of 9% year-over-year.

活躍客戶（過去 12 個月的衡量標準）在第四季度增加了 33,000 名客戶。這一成長使我們的活躍客戶數量達到 250 萬，年增 9%。

Our customers placed 2.0 million orders in the fourth quarter, an increase of 3% year-over-year. The increase in orders placed was offset by a decrease in average order value, or AOV, of 1% year-over-year to $303, as well as a year-over-year increase in return rate.

第四季我們的客戶下了200萬份訂單，較去年同期成長3%。訂單量的增加被平均訂單價值 (AOV) 年比下降 1% 至 303 美元以及退貨率同比增長所抵消。

Shifting to gross profit. Consolidated gross margin was 52.0%, at the high end of our guidance range. The increase of 57 basis points year-over-year primarily reflects a higher mix of net sales at full price and an increased mix of net sales from the higher margin REVOLVE Segment, partially offset by a lower mix of Owned Brand net sales within our REVOLVE Segment compared to the fourth quarter of 2022.

轉向毛利。綜合毛利率為 52.0%，處於我們指導範圍的高端。年成長 57 個基點主要反映了全價淨銷售額的增加以及利潤率較高的 REVOLVE 部門淨銷售額的增加，部分被 REVOLVE 內自有品牌淨銷售額的減少所抵消與2022 年第四季度相比。

The gross profit comparison at the segment level is more favorable at REVOLVE than FWRD, underscoring our great progress in rebalancing the REVOLVE Segment inventory.

分部層級的毛利比較，REVOLVE 比 FWRD 更有利，這突顯了我們在重新平衡 REVOLVE 分部庫存方面取得的巨大進展。

Moving on to operating expenses. A high-level summary is that much better-than-expected efficiency in selling and distribution expenses in the fourth quarter was largely offset by our general and administrative expenses coming in higher than our outlook. Fulfillment costs were 3.5% of net sales, slightly better than our outlook, and higher year-over-year as expected.

接下來是營運費用。概括地說，第四季度銷售和分銷費用的效率遠好於預期，但在很大程度上被我們高於預期的一般和管理費用所抵消。履行成本佔淨銷售額的 3.5%，略優於我們的預期，且比去年同期高於預期。

Selling and distribution costs were 17.8% of net sales, around 120 basis points more efficient than our fourth quarter outlook, and an increase of 24 basis points year-over-year. Our efforts to drive reductions in our global shipping and logistics costs are starting to become visible on our P&L, partially offset by a higher return rate year-over-year in the fourth quarter.

銷售和分銷成本佔淨銷售額的 17.8%，比我們第四季的預期效率高出約 120 個基點，較去年同期成長 24 個基點。我們為降低全球運輸和物流成本所做的努力開始在損益表上顯現出來，但部分被第四季度同比較高的退貨率所抵銷。

Our marketing investment also came in more favorable than expected, representing 16.4% of net sales, an increase of 104 basis points year-over-year. The increase reflects a planned increase in brand marketing investment and a shift in the timing of events in the fourth quarter of 2023 as compared to the prior year, partially offset by year-over-year efficiency improvements in performance marketing as a percentage of net sales.

我們的行銷投資也優於預期，佔淨銷售額的16.4%，較去年同期成長104個基點。這一成長反映出品牌行銷投資的計畫增加以及 2023 年第四季的活動時間安排與前一年相比的變化，但部分被績效行銷佔淨銷售額百分比的同比效率提高所抵消。

General and administrative costs were $34.7 million, an increase of 21% year-over-year that included $2.8 million of non-routine import and export fees and an additional $600,000 in costs for the legal matter mentioned last quarter that has now been settled.

一般及行政費用為 3,470 萬美元，年增 21%，其中包括 280 萬美元的非常規進出口費用以及上季度提到的法律事務的額外費用 60 萬美元，現已解決。

Our tax rate was 28% in the fourth quarter, up from 24% in the prior year. Net income was $3.5 million, or $0.05 per diluted share. The 56% year-over-year decline in net income primarily reflects our increased marketing investment year-over-year and increased G&A expenses year-over-year.

第四季我們的稅率為 28%，高於去年同期的 24%。淨利潤為 350 萬美元，或攤薄後每股收益 0.05 美元。淨利潤年減 56% 主要反映了我們行銷投資年增率以及一般及行政費用同比增加。

Adjusted EBITDA was $9 million, a decrease of 40% year-over-year.

調整後 EBITDA 為 900 萬美元，年減 40%。

Moving on to the balance sheet and cash flow statement. For the full-year 2023, net cash provided by operating activities was $43 million and free cash flow was $39 million, an increase of 85% and 114% year-over-year, respectively. Contributing to the strong cash flow metrics were improved inventory dynamics, partially offset by lower net income.

接下來是資產負債表和現金流量表。2023年全年，經營活動提供的淨現金為4,300萬美元，自由現金流為3,900萬美元，較去年同期分別成長85%及114%。庫存動態的改善促成了強勁的現金流量指標，但被淨利潤下降部分抵消。

Inventory at December 31, 2023 was $204 million, a decrease of 5% year-over-year. The year-over-year decline was four points steeper than our net sales decline, demonstrating the important progress we have made in rebalancing our inventory.

截至2023年12月31日的庫存為2.04億美元，年減5%。年比下降幅度比我們的淨銷售額下降幅度高四個百分點，這表明我們在重新平衡庫存方面取得了重要進展。

As of December 31, 2023, cash and cash equivalents were $245 million, an increase of $11 million, or 5% year-over-year, and we had no debt. Since the end of 2019, we have increased our cash balance by $180 million.

截至2023年12月31日，現金及現金等價物為2.45億美元，年增1,100萬美元，即5%，且我們沒有債務。自 2019 年底以來，我們的現金餘額增加了 1.8 億美元。

Our strong financial position enabled us to continue to invest in the business while returning capital to stockholders through the repurchase of Class A common shares as part of our commitment to enhancing shareholder value. During the fourth quarter, we repurchased nearly 1.3 million Class A common shares at an average price of $13.94. Approximately $69 million remained on our $100 million stock repurchase program at year end.

我們強大的財務狀況使我們能夠繼續投資業務，同時透過回購 A 類普通股向股東返還資本，作為我們提高股東價值承諾的一部分。第四季度，我們以 13.94 美元的平均價格回購了近 130 萬股 A​​ 類普通股。截至年底，我們 1 億美元的股票回購計畫中仍有約 6,900 萬美元。

Now, let me update you on some recent trends in the business since the fourth quarter ended and provide some direction on our cost structure to help in your modeling of the business for 2024. Starting from the top. The top-line pressure we experienced in the fourth quarter has continued, with net sales through the first eight weeks of 2024 decreasing by a mid-single digit percentage year-over-year.

現在，讓我向您介紹自第四季度結束以來業務的最新趨勢，並就我們的成本結構提供一些指導，以幫助您對 2024 年的業務進行建模。從頂部開始。我們在第四季經歷的營收壓力仍在持續，2024 年前八週的淨銷售額比去年同期下降了中個位數百分比。

To provide context for our net sales trending for the 8-week period through February 25, remember that in early 2023, we had a much larger assortment of markdown inventory than we do today. Notably, our net sales at full price have increased slightly year-over-year through the first eight weeks of 2024, while our markdown sales have decreased as our inventory today is substantially healthier. With much healthier inventory entering the year, the proportion of our net sales at full price and our gross margin are also much healthier in early 2024 as compared to the same period in 2023.

為了提供截至 2 月 25 日的 8 週淨銷售趨勢的背景信息，請記住，在 2023 年初，我們的降價庫存種類比現在多得多。值得注意的是，截至 2024 年前八週，我們的全價淨銷售額同比略有增長，而我們的降價銷售額有所下降，因為我們目前的庫存狀況要健康得多。隨著今年庫存狀況更加健康，2024 年初的全價淨銷售比例和毛利率也比 2023 年同期健康得多。

To assist in your modeling of net sales for the full first quarter of 2024, I also want to highlight that our net sales comparison for the upcoming month of March is easier than the year-over-year comparison we faced through the first eight weeks of 2024, consistent with our commentary on our fourth quarter 2022 earnings conference call last February.

為了幫助您對 2024 年第一季的淨銷售額進行建模，我還想強調一下，我們對即將到來的 3 月份的淨銷售額比較比我們在 2024 年前八週面臨的同比比較更容易2024年，與我們去年2 月在2022 年第四季財報電話會議上的評論一致。

Consistent with recent performance, net sales comparisons in the REVOLVE segment continued to outperform the FWRD segment year-over-year in early 2024.

與近期表現一致，2024 年初，REVOLVE 細分市場的淨銷售額較去年同期持續優於 FWRD 細分市場。

Lastly, I would like to point out the difficult comparison we face in international markets in the first quarter, as our international net sales increased 16% year-over-year in the first quarter of 2023.

最後，我想指出我們第一季在國際市場面臨的困難比較，因為我們的國際淨銷售額在 2023 年第一季同比增長了 16%。

Shifting to gross margin, we expect gross margin in the first quarter of 2024 of between 51.4% and 51.9%, implying a nearly two-point increase in gross margin year-over-over compared to the first quarter of 2023. For the full-year 2024, we expect gross margin of between 52.5% and 53.0%, an increase of about 90 basis points year-over-year at the midpoint.

轉向毛利率，我們預計 2024 年第一季的毛利率將在 51.4% 至 51.9% 之間，這意味著與 2023 年第一季相比，毛利率同比增長近兩個百分點。對於2024年全年，我們預計毛利率在52.5%至53.0%之間，中點年增約90個基點。

Fulfillment: We expect fulfillment as a percentage of net sales of approximately 3.5% for the first quarter of 2024. For the full-year 2024, we expect fulfillment costs of between 3.3% and 3.5% of net sales, approximately flat year-over-year, at the midpoint of the range.

履行量：我們預期 2024 年第一季的履行量佔淨銷售額的百分比約為 3.5%。對於 2024 年全年，我們預計履行成本將佔淨銷售額的 3.3% 至 3.5%，與去年同期大致持平，處於該範圍的中點。

Selling and Distribution, we expect selling and distribution costs for the first quarter of 2024 to be approximately 18.1%, which implies our first year-over-year decrease in selling and distribution expense as a percentage of net sales in three years. For the full-year 2024, we expect selling and distribution costs of between 17.8% and 18.0%, an expected decrease of roughly 50 basis points year-over-year at the midpoint of the range, as we continue to realize the efficiency efforts we invested in during 2023.

銷售和分銷，我們預計 2024 年第一季的銷售和分銷成本約為 18.1%，這意味著我們的銷售和分銷費用佔淨銷售額的百分比三年來首次同比下降。對於 2024 年全年，我們預計銷售和分銷成本將在 17.8% 至 18.0% 之間，預計同比下降約 50 個基點（按該範圍的中點計算），因為我們繼續努力提高效率2023 年期間投資。

Marketing, we have an active calendar of brand building events in the first quarter, including two impactful events held in Las Vegas around the Super Bowl and dozens of events in Aspen at the REVOLVE and FWRD Pop Up. As a result, we expect marketing in the first quarter of 2024 to be approximately 16.0% of net sales. For the full-year 2024, we expect our marketing investment to represent between 16.0% and 16.2% of net sales, consistent with our marketing investment of 16.1% of net sales in 2023. In terms of sequencing, in 2024, we expect marketing as a percentage of net sales to be more linear than in recent years, particularly in the second quarter.

行銷方面，我們在第一季制定了積極的品牌建立活動日曆，包括圍繞超級盃在拉斯維加斯舉辦的兩場有影響力的活動，以及在阿斯彭的REVOLVE 和FWRD Pop Up 舉辦的數十場活動。因此，我們預計 2024 年第一季的行銷費用將約佔淨銷售額的 16.0%。對於 2024 年全年，我們預計行銷投資將佔淨銷售額的 16.0% 至 16.2%，與 2023 年行銷投資佔淨銷售額的 16.1% 一致。就排序而言，我們預計 2024 年行銷佔淨銷售額的百分比將比近年來更加線性，特別是在第二季。

General and Administrative, we expect G&A expense of approximately $33 million in the first quarter of 2024 and between $130 million and $133 million for the full-year 2024. This implies a 4% year-over-year increase in G&A costs for the full-year 2024, at the midpoint of the guidance range, as we continue to invest in longer term growth initiatives. We expect G&A expense in dollar terms to be fairly steady throughout the year. And lastly, we continue to expect our effective tax rate to be around 24% to 26%, both in the first quarter and in the full-year 2024.

一般和行政方面，我們預計 2024 年第一季的一般管理費用約為 3,300 萬美元，2024 年全年的一般管理費用約為 1.3 億美元至 1.33 億美元。這意味著，隨著我們繼續投資於長期成長計劃，2024 年全年的一般管理費用將年增 4%，處於指導範圍的中點。我們預計以美元計算的一般管理費用將在全年相當穩定。最後，我們仍然預計 2024 年第一季和全年的有效稅率約為 24% 至 26%。

To recap, we closed out a challenging year with a solid fourth quarter, highlighted by a return to gross margin expansion year-over-year that we expect will continue in 2024. We also expect to drive efficiencies in our largest operating expense category, selling and distribution costs. And finally, we expect to continue to leverage our financial strength and invest in the attractive long-term opportunity ahead of us.

回顧一下，我們以穩健的第四季度結束了充滿挑戰的一年，毛利率恢復同比擴張，我們預計這種情況將在 2024 年繼續增長。我們也希望提高我們最大的營運費用類別、銷售和分銷成本的效率。最後，我們希望繼續利用我們的財務實力，投資於我們面前有吸引力的長期機會。

Now, we’ll open it for your questions.

現在，我們將打開它來回答您的問題。

(Operator Instructions) Mark Altschwager, Baird.

（操作說明）Mark Altschwager，Baird。

Good afternoon, thanks for taking my question. Maybe to start out, I was hoping you could elaborate a bit more on the quarter to date and the positive full price selling trends you're seeing. I guess just any reads from the festival season early on here, anything you're going to be doing differently this spring from a marketing perspective that we could watch for? I know you called out the easier comparison, but just wondering any other dynamics beyond that, which you think could drive a sustained positive inflection in the growth rate as we move through spring. And then I had a follow-up on margin.

下午好，感謝您提出我的問題。也許首先，我希望您能詳細說明本季迄今以及您所看到的積極的全價銷售趨勢。我想這裡只是節日季節初期的任何讀物，從我們可以關注的營銷角度來看，今年春天你會採取什麼不同的做法？我知道您提出了更簡單的比較，但只是想知道除此之外的任何其他動態，您認為這可能會在我們度過春季時推動增長率持續積極的變化。然後我對保證金進行了跟進。

Yes. So, we feel really good about the trends we're seeing early in the quarter with regards to full price sales. And I think it's a reflection of all the work we've done on the inventory side, REVOLVE in particular, looks quite healthy. FRWD, we still have some work to do, but really promising trends on that side. As we move through the spring, that's always one of our core seasons. And it's still a bit early. We haven't kind of hit that season full on yet, but we're certainly optimistic we'll see some better trends on the sales side as we move through the course three months of March and then April and May.

是的。因此，我們對本季初看到的全價銷售趨勢感到非常滿意。我認為這反映了我們在庫存方面所做的所有工作，尤其是 REVOLVE，看起來相當健康。FRWD，我們還有一些工作要做，但這方面的趨勢確實很有希望。當我們度過春天時，這始終是我們的核心季節之一。而且現在還有點早。我們還沒有完全進入那個季節，但我們當然樂觀地認為，隨著我們經歷三月、四月和五月的三個月，我們會在銷售方面看到一些更好的趨勢。

Thank you. And then the selling and distribution, nice progress there, I think, 100 basis points, over 100 basis points better than your plan in the fourth quarter. And I think you're looking to sustain at or below the 18% for the year. What are the implicit assumptions you're making there for the trajectory of return rates? And just as we unpack that, I mean, are you able to quantify some of the efficiency savings you're seeing from some of those more controllable initiatives?

謝謝。然後是銷售和分銷，我認為進展不錯，比第四季度的計劃好 100 個基點，超過 100 個基點。我認為今年您希望維持在 18% 或以下。您對報酬率軌跡做出的隱含假設是什麼？正如我們解開這個問題一樣，我的意思是，您是否能夠量化您從一些更可控的舉措中看到的一些效率節省？

Yes. Thanks, Mark. We probably won't quantify specifically those initiatives. We put a lot of good work into those in 2023. So it's great to finally see those coming through in the P&L. But maybe for some of the other assumptions that do impact that line item. AOV, we're assuming is flat to slightly positive for the year. And in return rate, we are modeling in a flat return rate. So we're optimistic that we can make gains there, and we've got a lot of good things in the works, but we're not modeling that in at this point. And then I think keep in mind also that Q1 typically has a slightly lower AOV and that's why you see the, in part where you see the Q1 guidance of 18.1%, a little bit higher than that 18% or kind of that 17% to 18% for the full year.

是的。謝謝，馬克。我們可能不會具體量化這些舉措。2023 年，我們在這些方面投入了大量的工作。因此，很高興最終看到這些結果出現在損益表中。但也許對於確實影響該訂單項目的其他一些假設。我們假設今年的 AOV 持平或略為正值。在回報率方面，我們採用固定回報率進行建模。因此，我們樂觀地認為我們可以在那裡取得進展，並且我們已經取得了許多好的成果，但目前我們還沒有對此進行建模。然後我認為還要記住，第一季的AOV 通常略低，這就是為什麼您會看到，在某種程度上，您會看到第一季的指引為18.1%，比18% 或17%略高一點。全年18%。

Anna Andreeva, Needham.

安娜·安德烈娃，李約瑟。

Great, Thanks so much and congrats, guys. Nice results. We had two questions. I wanted to follow-up on the G&A expenses. You mentioned the accrual that you saw in the fourth quarter. But can you talk about what's driving what looks like double-digit growth in 1Q and also for the year? And also secondly, looking at category performance, great to see beauty and men's working well. The fashion apparel and dresses continue to decline. So can you talk about what are you doing specifically to improve trends there? Are there fashion trends that you see in apparel as '24 unfolds that REVOLVE could capitalize on?

太棒了，非常感謝並恭喜你們。不錯的結果。我們有兩個問題。我想跟進一般管理費用。您提到了第四季的應計項目。但您能否談談是什麼推動了第一季和全年的兩位數成長？其次，看看類別表現，很高興看到美容和男士表現良好。時尚服裝和連身裙繼續下降。那麼您能談談您具體做了哪些工作來改善那裡的趨勢嗎？隨著 24 世紀的到來，您認為服裝中有哪些時尚趨勢是 REVOLVE 可以利用的嗎？

Yes, sure. Thanks, Anna. And I'll take that first one on G&A and then pass it over to Mike and Michael for the second part of that question. Yes. We did have some non-routine items in the quarter. If you pull those out, it was closer to in line with the guidance that we gave. But to your point, that does mean that Q1 is higher than Q4 on G&A. So a couple of things to keep in mind there. One, we make our merit adjustments, our salary increases in January of every year and two-thirds of that line item is people. So there is a sequential increase there. And then also, we do have incentive bonuses, incentive compensation in G&A. And given the results of this past year, bonuses were not accrued to the full amount, obviously. And then in the full year for 2024, we're starting off in January with the expectation that we meet our targets. So there's a difference in the accruals for the incentive compensation.

是的，當然。謝謝，安娜。我將討論關於 G&A 的第一個問題，然後將其交給 Mike 和 Michael 來回答這個問題的第二部分。是的。本季我們確實有一些非常規項目。如果你把它們拿出來，它更接近我們給予的指導。但就您而言，這確實意味著第一季的一般管理費用高於第四季。因此，有幾件事需要記住。第一，我們會進行績效調整，每年一月加薪，其中三分之二是人員。所以那裡有一個連續的增加。此外，我們在一般管理費用方面確實有激勵獎金、激勵薪酬。考慮到去年的業績，顯然獎金並未全額計入。然後，在 2024 年全年，我們將從 1 月開始，期望能夠實現我們的目標。因此，激勵性薪酬的應計額有差異。

Edward Yruma, Piper Sandler.

愛德華·尤魯瑪，派珀·桑德勒。

Hey, good afternoon. Thanks for taking the question. Just trying to understand a little bit more on the gross margin expansion both for the quarter and for the year. Is it just driven by lower markdowns? Or at this point, are you now assuming that mix, either more dresses or private label as a positive gross margin driver for the balance year. Thank you.

嘿，下午好。感謝您提出問題。只是想更多地了解本季和全年的毛利率擴張情況。它只是由較低的降價推動的嗎？或者在這一點上，您現在是否假設更多的連身裙或自有品牌的組合可以作為平衡年度的積極毛利率驅動因素。謝謝。

Yes. Thanks, Ed. So it's largely the former an increase in that full price sales mix for the year. We did close out 2023 for the full year at 79%, which is in line with 2019. So very healthy. But if you remember in the first part of the year, especially the first half of the year, we are very suboptimal in terms of full price mix. So that's the largest driver there. And then we continue to make inroads just in kind of the third-party margins in general. We're not factoring in an increase in owned brand mix for 2024. So that's not part of it. And then forward Revolve mix always has an impact. And based on the results today, as we commented, we're seeing REVOLVE outpace FWRD, which -- and REVOLVE carries a higher margin than that FWRD segment.

是的。謝謝，艾德。因此，前者主要是今年全價銷售組合的增加。我們最終確定 2023 年全年的成長率為 79%，與 2019 年持平。所以非常健康。但如果你還記得今年上半年，尤其是上半年，我們在全價組合方面的表現非常欠佳。所以這是最大的驅動力。然後我們繼續在第三方利潤方面取得進展。我們沒有考慮到 2024 年自有品牌組合的增加。所以這不是其中的一部分。然後向前旋轉混合總是有影響。根據今天的結果，正如我們所評論的，我們看到 REVOLVE 超過了 FWRD，而 REVOLVE 的利潤率高於 FWRD 細分市場。

Great. Thank you.

偉大的。謝謝。

Michael Binetti, Evercore ISI.

邁克爾·比內蒂，Evercore ISI。

Hey guys, congrats on the nice quarter. A couple for me. I guess on the -- in the US, you talked a lot in the -- well, you talked about in the prepared remarks about international. How are you thinking about plans to grow the US in 2024? Just curious your thought there on how to get back to positive. And then on the pop-up store, you guys have been fairly dogmatic about sticking to e-commerce only. And certainly, there's a lot of advantages to staying there -- your core channel, you have a lot of compounded excellence there. But when you see the turnout that you spoke of at these pop-up stores, the sales metrics, the new customer connections may be a way to extend the efforts you've made to make points of shipment and points of product returns closer to the consumer. It seems like there could be some inches that you could scratch. Is there like a potential for this business to have a small fleet of high-impact stores or key cities strategy on stores at some point?

嘿夥計們，祝賀這個美好的季度。給我一對。我想，在美國，你談了很多——嗯，你在準備好的關於國際的演講中談到了這一點。您如何看待 2024 年美國發展計畫？只是好奇你對如何恢復正面的想法。然後在快閃店上，你們一直相當教條地堅持只做電子商務。當然，留在那裡有很多優勢——你的核心管道，在那裡你有很多複合的卓越能力。但是，當您看到您提到的這些快閃店的投票率、銷售指標、新客戶關係時，可能會是您為使裝運點和產品退貨點更接近實際情況而付出的努力的一種方式。消費者。看起來可能有幾英寸可以刮傷。該企業是否有可能在某個時候擁有一小群高影響力的商店或在重點城市製定商店策略？

Yes, definitely. So as we think about -- just taking the first part of your question, as we think about growth for 2024, for us, it's just about continuing to invest in the things that make sense, continue to invest on the brand side, make sure we nail the merchandising mix and the position with the consumer. And I think with a much healthier inventory position, particularly on the REVOLVE side, we're well positioned to do that. Certainly, it's been a bit frustrating the past 18 months, not seeing the growth we're accustomed to. But the market opportunity remains huge. We have very low penetration in our target customer base. Also, just kind of touch on -- the store thing as it relates to the growth opportunity, the fact that over half of the customers we saw at the pop-up store were new customers, again, I think, validates that opportunity to a lot more share to take, all the category expansion we're doing.

當然是。因此，當我們思考問題的第一部分時，當我們思考 2024 年的成長時，對我們來說，這只是繼續投資於有意義的事情，繼續投資於品牌方面，確保我們確定商品組合和消費者定位。我認為，憑藉更健康的庫存狀況，特別是在 REVOLVE 方面，我們有能力做到這一點。當然，過去 18 個月有點令人沮喪，沒有看到我們習慣的增長。但市場機會依然巨大。我們在目標客戶群中的滲透率非常低。另外，我想談談商店的事情，因為它與成長機會有關，事實上，我們在快閃店看到的顧客中有一半以上是新顧客，我認為，這再次驗證了這個機會我們正在做的所有類別擴展，還有更多的分享。

So we think that the potential is quite huge. And obviously, we need to execute well to make sure we're seizing it at the appropriate pace, and we're hopeful that things will start to turn as we progress through the year. And then as we think about physical stores, we have always felt like REVOLVE has an incredibly strong brand. And we also feel like physical stores aren't going anywhere. We'll have to see where the ultimate balance of physical versus digital ends up. But physical in our view will always be an important channel. And so yes, I think that is an exciting opportunity for us. We're not going to go after it just to chase share. If we go after it, we're going to make sure we're doing it in the right way, in a profitable way. I think as you mentioned, there's a lot of upside opportunities with it, particularly for our business, which has such a high return rate. That can be a great traffic driver and help reduce return costs and increase sales from those customers coming in. And then the Aspen store results.

所以我們認為潛力是相當巨大的。顯然，我們需要很好地執行，以確保我們以適當的速度抓住這一機遇，並且我們希望隨著這一年的進展，情況將開始出現轉變。當我們想到實體店時，我們一直覺得 REVOLVE 有一個非常強大的品牌。我們還覺得實體店不會消失。我們必須看看物理與數位的最終平衡如何。但在我們看來，實體永遠是個重要的管道。所以，是的，我認為這對我們來說是一個令人興奮的機會。我們不會僅僅為了追逐份額而追求它。如果我們追求它，我們將確保我們以正確的方式、以有利可圖的方式去做。我認為正如您所提到的，它有很多上升的機會，特別是對於我們的業務來說，它的回報率如此之高。這可以成為一個巨大的流量驅動因素，有助於降低退貨成本並增加進來的客戶的銷售。然後是阿斯彭商店的結果。

And certainly Aspen is a unique location. We've had a lot of marketing activities supporting it. So it's a bit early to extrapolate too much from it. But certainly, at the surface level, the numbers are quite compelling that we see there. So that's certainly an interesting data point for us and has us thinking more and more of what the potential opportunity there is. And as a result of the traction that we're seeing, we do anticipate testing out the Aspen location a bit longer than we originally anticipated or as originally anticipated, just as a pure pop-up event we think it's interesting to consider the potential further than that.

當然，阿斯彭是一個獨特的地點。我們有很多行銷活動來支持它。因此，從中推斷太多還為時過早。但當然，從表面上看，我們看到的數字相當引人注目。因此，這對我們來說無疑是一個有趣的數據點，讓我們越來越多地思考潛在的機會。由於我們所看到的吸引力，我們確實預計測試阿斯彭地點的時間比我們最初預期或最初預期的時間要長一些，就像一個純粹的快閃活動一樣，我們認為進一步考慮潛力是很有趣的比起那個來說。

Okay, thanks. We'll talk more about that. Thank a lot, guys and congrats again.

好的謝謝。我們將詳細討論這一點。非常感謝，夥計們，再次祝賀。

Kunal Madhukar, UBS.

庫納爾馬杜卡，瑞銀。

Hi, thanks a lot. This is Jason on for Kunal from UBS. I have a couple of questions. The first one is Macy said this morning, they're closing about 150 stores nationwide. And what's curious how you guys are digesting this news? At a high level, like as more physical retailers pull back, how much could REVOLVE benefit from it? And I have a follow-up.

你好，非常感謝。我是瑞銀 (UBS) 的傑森 (Jason) 代表庫納爾 (Kunal)。我有一些問題。第一個是梅西百貨今天早上表示，他們將關閉全國約 150 家商店。好奇你們是如何消化這個消息的？從較高層次來看，例如隨著更多實體零售商退出，REVOLVE 可以從中受益多少？我有一個後續行動。

Yes. We've always said that one of the biggest sources of market share gain out there is a lot of these legacy retailers, particularly kind of the mid and higher end and certainly Macy's does have stores like that. And the Bloomingdale's business and some higher end Macy's stores. I think it's reflective of the broader department store business that has been seeing share for years. And so for us, I think this is just kind of another data point in an ongoing multiyear trend that should we execute well, it should mean very good things for us.

是的。我們總是說，市佔率成長的最大來源之一是許多傳統零售商，特別是中高端零售商，當然梅西百貨確實有這樣的商店。還有布魯明代爾百貨公司和一些高端梅西百貨商店。我認為這反映了多年來一直佔據份額的更廣泛的百貨公司業務。因此，對我們來說，我認為這只是持續多年趨勢中的另一個數據點，如果我們執行得好，這對我們來說應該意味著非常好的事情。

Got it. The second one is a quick one. Can you help us understand sort of the -- how the inventory levels and gross margin would trend for the rest of this year? And in terms of men and beauty, can you help us understand sort of the typical AOV profile for those two categories?

知道了。第二個是很快的。您能否幫助我們了解今年剩餘時間內庫存水準和毛利率的趨勢？在男性和美女方面，您能幫助我們了解這兩個類別的典型 AOV 概況嗎？

Yes. So on the first one, the inventory and margin trends. I think you can see in the guidance that we gave with the Q1 being 51.4% to 51.9% and then the full year being 52.5% to 53%, we do see sequential improvement throughout the year. There's also seasonality there. So Q1 is typically lower than, say, Q2 that has a higher ratio of full price. And then inventory, I think in total, we're excited to be back into moderate growth mode there with bookings being positive year-on-year after a year of correction in 2023. But it is the tale of two cities there with REVOLVE as we've commented in much better shape than the FWRD. So we still have some work to do on FWRD, but revolve starting off the year very well. And then you had Men's and I think Beauty, was it both those Men’s and Beauty?

是的。第一個是庫存和利潤趨勢。我認為您可以在我們給出的指導中看到，第一季為 51.4% 至 51.9%，全年為 52.5% 至 53%，我們確實看到全年連續改善。那裡也有季節性。因此，第一季的價格通常低於全價比率較高的第二季。然後是庫存，我認為總的來說，我們很高興能回到溫和的成長模式，在 2023 年的調整之後，預訂量比去年同期呈正增長。但這是兩個城市的故事，REVOLVE 的情況比 FWRD 好得多。因此，我們在 FWRD 方面仍有一些工作要做，但今年開局進展順利。然後還有男裝，我認為是美妝，是男裝還是美妝嗎？

Kind of the styles there? Men’s and Beauty. Yes.

那裡的款式有哪些？男士和美容。是的。

So beauty is the, I guess, the most different with significantly lower AOV, but with that comes a much lower return rate. So those are the biggest differences between Beauty and kind of the core business. So when you get down to a contribution margin level that puts and takes there relatively balanced out. And then I would say Men's is closer to the women's business, a lower return rate on Men's. And then a slightly different product mix on men's when you think about that versus a women's that's one-third dresses, plus or minus, and then men's being more kind of shoes and the apparel portion.

所以我想，美麗是最不同的，AOV 明顯較低，但隨之而來的是回報率低得多。所以這些是美容和核心業務之間最大的區別。因此，當你達到邊際貢獻水準時，投入和產出就會相對平衡。然後我會說男裝比較接近女裝業務，男裝的報酬率較低。然後，當你考慮到男裝與女裝的產品組合略有不同時，男裝的產品組合是三分之一的連身裙（加或減），然後男裝的產品組合更多的是鞋子和服裝部分。

Jim Duffy, Stifel.

吉姆·達菲，斯蒂菲爾。

Thank you. Appreciate you guys taking my question. I wanted to focus on return rates for a moment, encouraging to see some sequential improvement in returns. I'm curious, is that seasonality or some of the specific initiatives that you guys have started to put in place? Are you beginning to see some benefits from those?

謝謝。感謝你們回答我的問題。我想暫時關註一下報酬率，令人鼓舞的是看到報酬率有持續改善。我很好奇，這是季節性還是你們已經開始實施的一些具體措施？您開始看到其中的一些好處了嗎？

Yes. Thanks, Jim. Yes, it was good to see that sequential decrease. That said, don't get too excited about it because there is some seasonality factor there. If you go back to pre-COVID times, there's typically about a point sequential decline between 3Q and 4Q. We did see a larger sequential decrease than that this quarter, but there's also a lot of other mixed components and things going on there. But I think it was good to see. I just don't want to get too far ahead of ourselves. And we are -- to the second part of your question there, we are still very optimistic on a lot of the initiatives we have going into that return rate initiative, but not factoring that into the model yet for 2024.

是的。謝謝，吉姆。是的，很高興看到連續下降。也就是說，不要對此太興奮，因為其中存在一些季節性因素。如果你回到新冠疫情之前的時代，第三季和第四季之間通常會出現一個點的連續下降。我們確實看到了比本季更大的環比下降，但還有很多其他混合因素和事情正在發生。但我認為很高興看到。我只是不想太過超前。對於你問題的第二部分，我們仍然對我們在回報率計劃中採取的許多舉措非常樂觀，但尚未將其納入 2024 年的模型中。

Rick Patel, Raymond James.

瑞克·帕特爾，雷蒙德·詹姆斯。

Thank you. Good afternoon, everyone. Can you talk about the health of the consumer. I'm curious if there are any changes to the way people behave in the fourth quarter relative to earlier in the year as we think about things like trade down, sensitivity to price points and so on and what your underlying assumptions are for how this evolves as you go through '24?

謝謝。大家下午好。能談談消費者的健康嗎？我很好奇人們在第四季度的行為方式相對於今年早些時候是否有任何變化，因為我們會考慮諸如降價、對價格點的敏感性等問題，以及您對這種情況如何發展的基本假設是什麼當你經歷'24？

So in the fourth quarter, we saw some, I'd call it, mildly improving trends on the REVOLVE side. And we've talked about in the past how REVOLVE kind of the full price off price ratios are a bit more a function of its own inventory mix and what's going on in the broader market. But I would say kind of mildly better in the fourth quarter, but I wouldn't say kind of anything that shows us a clear inflection point.

因此，在第四季度，我們看到 REVOLVE 方面的一些趨勢略有改善。我們過去曾討論過 REVOLVE 的全價比更多地取決於其自身庫存組合以及更廣泛市場的情況。但我會說第四季會稍微好一些，但我不會說任何向我們展示明顯拐點的事情。

FWRD continues to be challenged and mentioned earlier on the call, some of luxury sector data, and I think particularly multi-brand e-commerce apparel continues to be challenged in the luxury segment. So we haven't seen the inflection points we'd like there.

FWRD 繼續受到挑戰，之前在電話會議中提到了一些奢侈品行業的數據，我認為特別是多品牌電子商務服裝在奢侈品領域繼續受到挑戰。所以我們還沒有看到我們想要的轉折點。

We feel confident in FWRD’s positioning and confident in its ability to grow over the long term, but the progress has been a little bit slower there than we'd hoped for.

我們對 FWRD 的定位及其長期成長能力充滿信心，但進展比我們希望的要慢一些。

Simeon Siegel, BMO Capital Markets.

西蒙‧西格爾 (Simeon Siegel)，BMO 資本市場。

Thanks. Hey guys, good afternoon. Hope you're all doing well. Maybe to follow-up on that a little bit. So any way to break apart your active customer performance between REVOLVE and FWRD and maybe the comments about the luxury market dislocation. Just how are you thinking about what the time line should look like for you to see the turn in that business? And maybe both speak to the revenues, which I think you were, but then also the gross margin.

謝謝。嘿夥計們，下午好。希望你們一切都好。也許要跟進一下。因此，有什麼方法可以區分 REVOLVE 和 FWRD 之間的活躍客戶表現，也許還有關於奢侈品市場混亂的評論。您如何看待該業務出現轉變的時間表？也許兩者都涉及收入，我認為你是這樣，但也涉及毛利率。

Yes. So on active customers, breaking that out between REVOLVE and FWRD, not exactly, but largely tracks to the revenue performance that we're seeing, where we're seeing more activity on the REVOLVE side, more positive activity on the REVOLVE side and then more pressure on the FWRD side. And then also kind of reflective of the revenue mix between domestic and international, more positive activity on international than on the domestic side.

是的。因此，對於活躍客戶，在REVOLVE 和FWRD 之間進行劃分，不完全是這樣，但很大程度上跟踪了我們所看到的收入表現，我們看到REVOLVE 方面有更多的活動，REVOLVE 方面有更多的積極活動，然後FWRD方面的壓力更大。然後也反映了國內和國際之間的收入組合，國際方面的活動比國內方面更積極。

So you can kind of generally align sales and the new customer growth there, which then impacts active customers. We do expect the active customer growth number to come down. I think that's an important note, given that last Q1 and Q1 of 2023, we had a record number of new customers. Now a lot of that growth came from markdown customers, given our mix and the inventory repositioning that we're going through at that time. So a really good, healthy customer base. The customer activity is healthier than the pre-COVID levels. But there are some near-term dynamics that we're working through there. And then the second part of your question?

因此，您可以整體協調銷售和新客戶的成長，從而影響活躍客戶。我們確實預期活躍客戶成長數量將會下降。我認為這是一個重要的說明，考慮到 2023 年第一季和第一季度，我們的新客戶數量創下了紀錄。現在，考慮到我們當時正在經歷的產品組合和庫存重新定位，大部分成長來自降價客戶。這是一個非常良好、健康的客戶群。客戶活動比新冠疫情前的水平更健康。但我們正在努力解決一些近期動態。那麼你問題的第二部分呢？

Just for -- I think, I don't know, Mike or Michael, you had made the comment that this could be good to the market dislocation amongst the online luxury peers. So just how are you thinking about what the time line or different expectations that you’d expect to see to be able to see that turn. And again, I think that generally speaks to the revenues, but it would be also just helpful to hear your perspective on the gross margin opportunity there.

只是因為——我想，我不知道，麥克或邁克爾，你曾說過這可能有利於線上奢侈品同行之間的市場混亂。那麼，您如何考慮實現此轉變的時間線或不同的期望呢？再說一遍，我認為這通常指的是收入，但聽聽您對毛利率機會的看法也會有所幫助。

Yes, we're certainly hopeful we'll start to see some inflections in the back half of the year. And we saw some inventory to work through, but we believe the dislocation in the online luxury world should provide meaningful opportunities for us, and we're getting closer to seeing the kind of inventory trends we want on the FWRD side of the business. So hopefully, we see those margins improve and the sales trends improve in a significant way coming to the back half of the year.

是的，我們當然希望在今年下半年開始看到一些變化。我們看到了一些庫存需要解決，但我們相信線上奢侈品世界的混亂應該為我們提供有意義的機會，而且我們越來越接近看到我們在 FWRD 業務方面想要的庫存趨勢。因此，希望我們能在今年下半年看到這些利潤率的提高和銷售趨勢的顯著改善。

Janine Stichter, BTIG.

珍妮‧史蒂克特 (Janine Stichter)，BTIG。

Hi, thanks for taking my question. I understand you're not planning to own brand penetration to grow this year, at least based on how you're buying the inventory. I was wondering if you could speak to some of the opportunity there just to retool the own brand mix and maybe fill in some of the gaps in the assortment. And we noticed the Marianna Hewitt at the launch, it feels a bit more casual, more versatile than what we've usually seen from the owned brands. Just was hoping you could speak to the strategy there.

您好，感謝您提出我的問題。據我所知，您今年不打算提高自己的品牌滲透率，至少根據您購買庫存的方式來看是如此。我想知道您是否可以談談那裡的一些機會，只是為了重組自己的品牌組合，也許可以填補品種中的一些空白。我們在發表會上註意到了 Marianna Hewitt，它比我們通常看到的自有品牌更休閒、更百搭。只是希望你能談談那裡的策略。

Yes. On a high level, it's kind of like the categories or kind of like the broad categories, dresses, bottoms, that sort of stuff. One lens that we break down and share information, but also internally, we review end use and kind of segmentation even more important. So we'll see the diversification away from the categories other way, diversification into the zones outside of our historic strength like going out close warm weather. -- into areas of the wardrobe, areas of the closet and other -- the floors on the department store that we aren't just top of mind. So Marianna was as a strong zone into kind of a little bit more sophisticated, a little bit more sheet, a little bit more casual or potentially a little bit more modern workplace as well. The health collection, which is going stores also been a lot more casual away from dresses in terms of other aspects of the customers' lives, and we'll continue to see more and more diversification knowing that the customer loves us and the customer trusts us. And ultimately, there's just so much more opportunity to connect with her on different levels of what she needs.

是的。從高層次來說，它有點像類別，或者像寬泛的類別，裙子，下裝，諸如此類的東西。我們分解並分享資訊的一個鏡頭，但在內部，我們審查更重要的最終用途和細分類型。因此，我們將以其他方式看到類別的多樣化，進入我們歷史實力之外的區域，例如在溫暖的天氣下外出。 - 進入衣櫃區域，壁櫥區域和其他區域 - 百貨公司的地板，我們不僅僅是最關心的。因此，瑪麗安娜是一個更複雜、更單調、更休閒或可能更現代的工作場所的強大區域。即將上市的健康系列在顧客生活的其他方面也比連身裙更加休閒，我們將繼續看到越來越多樣化，因為我們知道顧客愛我們並且信任我們。最終，我們有更多的機會在不同層面上與她聯繫，滿足她的需求。

Great. And then can you just remind us how much higher margin the owned brands are versus the broader assortment?

偉大的。那麼您能否提醒我們，自有品牌的利潤率與更廣泛的品類相比要高多少？

Yes. We haven't specifically quantified that other than to say it is meaningfully higher than the third-party. So we just leave it there. But it is an important long-term gross margin driver, especially on the REVOLVE side and then some opportunity longer term on FWRD as well.

是的。我們沒有具體量化，只是說它明顯高於第三者。所以我們就把它留在那裡。但這是一個重要的長期毛利率驅動因素，尤其是在 REVOLVE 方面，而且從長遠來看，FWRD 也有一些機會。

Oliver Chen, TD Cowen.

奧利佛·陳，TD·考恩。

Hi, you made a lot of progress in rightsizing inventories. How should we think about the modeling of the inventory relative to sales growth going forward and those distinctions? Also, as you think about categories, where were you outperforming or had opportunities for chasing if there were some in terms of outperforming versus underperforming categories?

您好，您在調整庫存方面取得了很大進展。我們應該如何考慮與未來銷售成長相關的庫存建模以及這些差異？另外，當你考慮品類時，你在哪些方面表現出色，或者是否有機會追逐表現優異或表現不佳的品類？

And then finally, you've been very creative and proactive with artificial intelligence. Would love your thoughts on how material this may be? It can definitely apply to supply chain and fraud detection, but it can also apply the very creative aspects. How would you help decipher what might actually be needle moving as you engage in that innovation?

最後，您在人工智慧方面非常有創造力和主動性。想知道您對這可能有多重要的想法嗎？它絕對可以應用於供應鍊和詐欺檢測，但它也可以應用非常有創意的方面。當您參與這項創新時，您將如何幫助破解實際上可能會發生什麼變化？

Yes. So I'll take the first couple there, Oliver, and then pass it over. So on the inventory modeling, this quarter we closed with inventory down 5% on net sales down 1%. So an improved gap there from what you've been seeing earlier in the year. We do expect that overall gap to close in sales growth, inventory growth to roughly align. And again, just as a reminder, REVOLVE in much better shape. So that positive gap call it, on REVOLVE is much healthier versus FRWD where we still have work to do going into the year.

是的。所以我會帶第一對夫婦去那裡，奧利佛，然後把它過去。因此，在庫存模型方面，本季我們的庫存下降了 5%，淨銷售額下降了 1%。因此，與今年稍早看到的差距有所改善。我們確實預期銷售成長和庫存成長的整體差距將縮小。再次提醒一下，旋轉的形狀要好得多。因此，REVOLVE 上的正差距比 FRWD 健康得多，而 FRWD 進入今年我們仍有工作要做。

But having -- going into the year with healthy full price, healthy margin and back into kind of inventory booking/receipts growth mode, we're pretty excited about it. And then outperformance versus underperformance, it's dresses down 5%, apparel down 8% and then offset by really strong growth in handbag, shoes and accessories of plus 7%. And then kind of the highlight was beauty at plus 28%. So that continues to really outperform. But I would say, no significant misses on missing demand or the opposite. We feel like we're in pretty good shape as we enter the year outside of FWRD.

但是，以健康的全價、健康的利潤進入今年，並回到庫存預訂/收據成長模式，我們對此感到非常興奮。然後，表現優異與表現不佳相比，服裝下降了 5%，服裝下降了 8%，然後被手提包、鞋子和配件的強勁增長（7% 以上）所抵消。然後最大的亮點是美麗，增加了 28%。所以它的表現仍然非常出色。但我想說的是，需求缺失並沒有重大失誤，或者相反。當我們進入 FWRD 以外的這一年時，我們感覺自己的狀態非常好。

Yes. And on the artificial intelligence side, it really has the aspect to touch every area of the business. So certainly, it's already had an impact on all the sort of things that we do. I think more broadly, most aspects of general operations can see some sort of benefit there. In terms of the website experience, there's a ton of opportunities in terms of personalization and new ways of product discovery in search and kind of browsing the website that we're actively working on both with third parties and also with our own internal team, which is tremendous. On the buying and planning side, it can assist with those buying and planning decisions, which maybe is a sub-aspect to supply chain, but a little bit more interesting one than warehouse rebalancing.

是的。而在人工智慧方面，它確實有能力觸及業務的各個領域。當然，它已經對我們所做的所有事情產生了影響。我認為更廣泛地說，一般營運的大多數方面都可以從中看到某種好處。就網站體驗而言，在個人化以及搜尋和瀏覽網站中產品發現的新方式方面存在大量機會，我們正在與第三方以及我們自己的內部團隊積極合作，這是巨大的。在購買和計劃方面，它可以幫助做出購買和計劃決策，這可能是供應鏈的一個子方面，但比倉庫重新平衡更有趣。

And then to your point on kind of the most creative aspects, right, there's a ton of potential within imagery. And certainly, there's a lot of, I think, really exciting examples out there where we've all seen the power of what generative AI can do with imagery. Getting it to the point where it's productionized is something that we're working on. And by productionized, I mean you can do it consistently in a cost-effective way and in a repeatable way. And that's something our teams are actively working on. And I have confidence that, that is something that's going to occur sooner rather than later across the industry, and we certainly hope to be a leader there.

然後就您關於最具創意的方面的觀點而言，圖像具有巨大的潛力。當然，我認為有很多非常令人興奮的例子，我們都看到了生成式人工智慧在圖像方面的力量。我們正在努力將其實現生產化。透過生產化，我的意思是您可以以具有成本效益的方式和可重複的方式一致地完成它。這就是我們的團隊正在積極努力的事情。我相信，整個行業遲早都會發生這種情況，我們當然希望成為該領域的領導者。

And that kind of enables you to do so many more things than you could prior, right, where you can really customize the experience in the imagery to the individual user in terms of what those products looks like because we would hope to be able to kind of customize things and generate a lot more options than we could without the help of artificial intelligence.

這使您能夠做比以前更多的事情，對吧，您可以根據這些產品的外觀真正為個人用戶定製圖像體驗，因為我們希望能夠定制事物並產生比沒有人工智能幫助時更多的選項。

Last follow-up. Performance marketing, it's been a little more rational, but fairly volatile. What are you assuming for your customer acquisition cost? And anything you're seeing with keywords and also in light of the dislocation we're all speaking to? Thank you.

最後一次跟進。效果行銷比較理性一些，但也相當不穩定。您假設您的客戶獲取成本是多少？您在關鍵字方面以及我們都在談論的混亂中看到了什麼？謝謝。

Yes. So, performance marketing is something that we've always kind of played quarter-by-quarter with obviously trying to keep things in a certain range in terms of our overall spend as a percentage of sales and then the various internal targets we have in terms of acquisition costs. So I'd say, overall, we've seen what I would call a more challenging environment in the past couple of quarters despite the improvement in marketing efficiency that you saw. So hopefully, we start to see things turn there. But for now, I can say, it's a little bit more challenging environment to be able to deploy the spend that we'd like and the efficiencies that we'd like to see. But that's always been kind of the case across the years where you have some periods where it's a little bit tougher and then some periods where opportunity opens up.

是的。因此，效果行銷是我們一直在按季度進行的事情，顯然是試圖將我們的總體支出佔銷售額的百分比以及我們的各種內部目標保持在一定範圍內。的購置成本。所以我想說，總的來說，儘管您看到行銷效率有所提高，但在過去幾季中，我們看到了我所說的更具挑戰性的環境。所以希望我們能開始看到事情發生轉變。但就目前而言，我可以說，要部署我們想要的支出和我們希望看到的效率，這是一個更具挑戰性的環境。但多年來的情況一直如此，有些時期會比較困難，有些時期會出現機會。

Ashley Owens, KeyBanc Capital Markets.

Ashley Owens，KeyBanc 資本市場。

Great, thanks so much. So just really quickly on fulfillment. I would appreciate some color on the shaping of that as we move through 2024 and then just how you're thinking about that return rate number and if we start to see any reversions to that? And then I have a follow-up.

太好了，非常感謝。所以很快就能實現。當我們進入 2024 年時，我希望能對這一數字的形成有一些了解，然後您如何看待回報率數字，以及我們是否開始看到任何回歸？然後我有一個後續行動。

Yes. On fulfillment, we expect to see some slight efficiencies as we progress through the year. So Q1, we were guiding towards 3.5%. And then for the full year, 3.3% to 3.5%. So there's always some quarter-to-quarter fluctuation there. But I would say, over the course of the year, some slight efficiencies. And then return rate, we are, at this point, modeling in no kind of benefit or detriment on return rate. We're modeling in a flattish return rate for this year, again considering the seasonal fluctuations across the year. But that said, optimistic on the things we have in works, but not quite there yet where we can model it in.

是的。在實現方面，我們預計隨著這一年的進展，我們會看到一些輕微的效率提升。因此，第一季度，我們的指導目標是 3.5%。然後全年為 3.3% 至 3.5%。因此，季度與季度之間總是存在一些波動。但我想說，在這一年中，效率略有提升。然後是回報率，此時，我們對回報率沒有任何好處或損害進行建模。我們對今年的回報率進行了建模，再次考慮到全年的季節性波動。但話雖如此，我們對現有的工作持樂觀態度，但還沒有完全達到我們可以對其進行建模的程度。

Okay. Great. And then just quickly, too. I saw that AOV for FWRD was slightly up year-over-year in the deck. So just curious as to what drove that? And then kind of as the inventory continues to rightsize here, where do you see this number normalizing?

好的。偉大的。然後也很快。我發現 FWRD 的 AOV 年比略有上升。所以只是好奇是什麼推動了這一點？然後，隨著這裡的庫存繼續調整規模，您認為這個數字在哪裡正常化？

Yes, that was great and good to pick up on that and a slight increase in the FWRD AOV. And maybe as a reminder as well, different from revolver where a heavy portion of the mix is dresses. FWRD is largely handbag shoes, accessories, and you can see the overall growth in handbag, shoes and accessories in some of our disclosures there. So we're seeing good growth in those higher price point categories.

是的，這非常好，而且 FWRD AOV 略有增加。也許也是作為一個提醒，與左輪手槍不同，左輪手槍的大部分組合是連身裙。FWRD 主要是手袋、鞋子、配件，您可以在我們披露的一些資訊中看到手袋、鞋子和配件的整體增長。因此，我們看到這些較高價位類別的良好成長。

And then maybe just on the AOV point as well, slightly down minus 1% year-over-year on the REVOLVE AOV, which led to the 1% decline overall in AOV. And that is also a mix component there with Beauty growing phenomenally over the course of this year that does pick the AOV down. If you remove Beauty from both years, than AOV does increased slightly on REVOLVE as well.

然後也許只是在 AOV 點上，REVOLVE AOV 年比小幅下降 -1%，這導致 AOV 整體下降 1%。這也是一個混合因素，美容在今年的成長速度驚人，確實降低了 AOV。如果您從這兩年中刪除 Beauty，那麼 REVOLVE 上的 AOV 也會略有增加。

Tom Nikic, Wedbush Securities.

韋德布希證券公司的湯姆‧尼基奇 (Tom Nikic)。

Hey guys, Thanks. Jesse, I want to ask about the margin structure of the business. So it looks like this year, you should see pretty nice improvement in both the gross margin and the OpEx sales ratio. I'm assuming we'd like to kind of build back towards some of the higher margin levels that you had before, perhaps back to the high single-digit range where you were pre-COVID. If we were to look down the road a couple of years, like what line items do you think would be able to help bridge the gap between that like 3% to 4% margin you're kind of implying for this year relative to the 8% or so that you were doing pre-COVID?

嘿夥計們，謝謝。傑西，我想問公司的利潤結構。所以看起來今年，你應該會看到毛利率和營運支出銷售比率都有相當大的改善。我假設我們希望恢復到之前的一些較高的利潤水平，也許回到新冠疫情之前的高個位數範圍。如果我們展望未來幾年，您認為哪些項目能夠幫助縮小今年相對於 8 年的 3% 到 4% 的利潤率之間的差距% 或者說您在新冠疫情爆發之前就在做這件事？

Yes. Yes. No, that's a great question, Tom. Thanks. I think in the near-term, you can -- we obviously gave the guidance around that. So expect to see some gross margin improvement and then starting to realize those efficiencies in that selling and distribution line. And this kind of plays out over the longer term, too, if you kind of extend that. We do expect further gross margin expansion, especially as we get forward, it's going to take a good part of this year to get forward right size. So once that happens, we get improved margin on the FWRD business.

是的。是的。不，這是一個很好的問題，湯姆。謝謝。我認為在短期內，我們顯然可以圍繞這一點提供指導。因此，預計毛利率會有所改善，然後開始實現銷售和分銷線的效率。從長遠來看，如果你能延長這種情況的話，這種情況也會發生。我們確實預計毛利率會進一步擴大，特別是隨著我們的前進，今年將需要大量時間才能達到適當的規模。因此，一旦發生這種情況，我們 FWRD 業務的利潤率就會提高。

And then over the long-term, we talked about owned brands. Still a lot of opportunity on owned brands as we get into 2025 and beyond. So those are a couple of the gross margin drivers where we expect to get back closer into that mid-50s zone versus the, call it, 52.5% to 53% we're in today. Some moderate efficiency gains in fulfillment, not a huge lever there. And then selling and distribution, we've made great gains in the past quarter. It's looking good early on for the year and starting to realize some of the work that we put into that line item in 2023. So that's another meaningful line item. Marketing, we want to keep the pedal down there back to Mike's comments on just the large opportunity that we have. That's not one that we intend to pull back on.

然後從長遠來看，我們談論了自有品牌。進入 2025 年及以後，自有品牌仍然有很多機會。因此，這些是毛利率的幾個驅動因素，我們預計毛利率將回到 50 年代中期的水平，而不是我們今天所處的 52.5% 至 53%。在履行方面有一些適度的效率提升，但並不是一個巨大的槓桿。然後是銷售和分銷，我們在過去的一個季度取得了巨大的收益。今年年初看起來不錯，並開始實現我們在 2023 年對該訂單項目投入的一些工作。這是另一個有意義的訂單項目。行銷方面，我們希望繼續關注麥克對我們擁有的巨大機會的評論。我們不打算取消這一目標。

And then finally, G&A. Over the long term, and you can kind of see what we've done for a few years prior to COVID and gaining multiple points of efficiency on that selling and distribution line item. But that takes, obviously, getting back into growth mode, which we're optimistic about, but still too much uncertainty out there to call kind of timing and magnitude.

最後，G&A。從長遠來看，您可以看到我們在新冠疫情爆發之前幾年所做的事情，並在銷售和分銷訂單項目上獲得了多個效率點。但顯然，這需要回到成長模式，我們對此持樂觀態度，但仍存在太多不確定性，無法稱之為時間和幅度。

That's all the time we have for questions today. I will turn the call back to management for closing remarks.

這就是我們今天提問的全部時間。我會將電話轉回管理層以供結束語。

Thanks for joining us for this 2023 year review. We're in a very, very challenging environment, but we're very excited about the progress that we made behind the scenes. Most proud of the team and the hard work with all the projects that we have in the upcoming quarters, and we'll be excited to share what we have in the quarters ahead. Thank you.

感謝您接受我們的 2023 年回顧。我們處於一個非常非常具有挑戰性的環境中，但我們對幕後的進展感到非常興奮。最令我們自豪的是我們的團隊以及我們在未來幾季中為所有專案所做的辛勤工作，我們將很高興分享我們在未來幾季中所取得的成果。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。