Revolve Group Inc (RVLV) 2024 Q3 法說會逐字稿

Good afternoon. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to REVOLVE's third-quarter 2024 results conference call. (Operator Instructions)

午安.我叫朱莉安，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 REVOLVE 2024 年第三季業績電話會議。（操作員說明）

At this time, I would 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 投資人關係副總裁 Erik Randerson。謝謝。你可以開始了。

Good afternoon, everyone, and thanks for joining us to discuss REVOLVE's third-quarter 2024 results. Before we begin, I'd like to mention that we have posted a presentation containing Q3 financial highlights to our Investor Relations website located at investors.revolve.com. 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 in operating and innovation initiatives, industry trends, our marketing events and impact, our partnerships and strategic acquisitions, our physical retail stores, and our outlook for net sales, gross margin, operating expenses, and effective tax rate.

大家下午好，感謝您加入我們討論 REVOLVE 2024 年第三季業績。在開始之前，我想提一下，我們已在投資者關係網站 Investors.revolve.com 上發布了包含第三季財務要點的簡報。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、我們在營運和創新舉措方面的關鍵優先事項、行業趨勢、我們的行銷活動和影響、我們的合作夥伴關係有關的陳述和策略性收購、我們的實體零售店，以及我們對淨銷售額、毛利率、營運費用和有效稅率的展望。

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 annual report on form 10-K for the year ended December 31, 2023, and our subsequent quarterly reports on form 10-Q, all of which can be found on our website at investors.revolve.com. We undertake no obligation to revise or update any forward-looking statements or information except as required by law.

這些陳述受到各種風險、不確定性和假設的影響，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」標題下和其他地方揭露的其他風險和不確定性在我們向美國證券交易委員會提交的文件中，包括但不限於我們截至2023 年12 月31 日的10-K 表格年度報告，以及我們隨後的10-Q 表格季度報告，所有這些都可以在我們的網站 Investors.revolve.com。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。

During our call today, we will 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.

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。此非 GAAP 財務資訊的呈現並非旨在孤立地考慮，也不能作為根據 GAAP 準備和呈現的財務資訊的替代或優於，且我們的非 GAAP 衡量標準可能不同於非 GAAP 衡量標準。 GAAP 衡量標準。

Reconciliations of non-GAAP measures to the most directly comparable 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.

非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的調節，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。

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.

今天與我一起參加電話會議的有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 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 delivered an exceptional third quarter, highlighted by double-digit top-line growth, a significant increase in net income year over year, and a 250 basis point increase in our adjusted EBITDA margin year over year.

大家好，感謝您今天加入我們。我們第三季的業績表現出色，兩位數的營收成長、淨利潤同比大幅成長以及調整後 EBITDA 利潤率較去年同期成長 250 個基點。

Contributing to the significant growth in profitability was better-than-expected logistics cost efficiencies, helped by a meaningful decrease in our return rate as well as impressive marketing efficiency that also outperformed our guidance, which more than offset a slight decrease in our gross margin year over year.

獲利能力顯著增長的原因是物流成本效率好於預期，這得益於我們的退貨率大幅下降以及令人印象深刻的營銷效率，這也超出了我們的指導，這足以抵消我們毛利率年度的小幅下降一年多了。

The fourth quarter is also off to an encouraging start with total net sales in October increasing in the low double-digits year over year supported by year-over-year growth in both segments of the business and across both domestic and international. Most importantly, we achieved these very strong financial results while continuing to invest in a wide range of initiatives that we believe set us up well for profitable growth and market share gains over the long term.

第四季也取得了令人鼓舞的開局，在兩個業務部門以及國內和國際業務的同比增長的支持下，10 月份的總淨銷售額同比以較低的兩位數增長。最重要的是，我們取得了這些非常強勁的財務業績，同時繼續投資於廣泛的舉措，我們相信這些舉措為我們的長期盈利增長和市場份額增長奠定了良好的基礎。

With that introduction, let me step back and provide a brief recap of the third quarter. Net sales were $283 million, an increase of 10% year over year, driven by improved year-over-year trends across both segments and geographies relative to our comparisons in the second quarter of 2024. Net sales in the REVOLVE segment increased 12% year over year, our best performance in more than two years. Net sales in the FWRD segment also improved to nearly flat year over year, helped by a solid exit rate that has continued in the month of October. Net sales in the fashion apparel and dresses categories rebounded strongly to 13% and 10% year-over-year growth respectively serving as key contributors to our growth re-acceleration.

介紹完畢後，讓我退後一步，簡單回顧一下第三季的情況。淨銷售額為 2.83 億美元，年增 10%，這得益於與 2024 年第二季相比，兩個細分市場和地區的同比趨勢有所改善。REVOLVE 細分市場的淨銷售額年增 12%，這是我們兩年多來的最佳表現。由於 10 月持續穩定的退出率，FWRD 部門的淨銷售額也較去年同期成長至接近持平。時尚服裝和洋裝類別的淨銷售額強勁反彈，分別年增 13% 和 10%，成為我們成長重新加速的關鍵因素。

These results benefitted from outstanding wins in product merchandising in these core categories that Michael will speak to in his remarks. The growth in net sales was further supported by our underlying key operating metrics, highlighted by growth in active customers. Trailing 12-month active customers increased by 51,000 during the third quarter, almost double the increase in active customers achieved in the second quarter of 2024.

這些成果得益於麥可將在演講中談到的這些核心類別的產品行銷方面的出色勝利。我們的基本關鍵營運指標進一步支持了淨銷售額的成長，其中活躍客戶的成長凸顯了這一點。第三季過去 12 個月的活躍客戶增加了 51,000 名，幾乎是 2024 年第二季活躍客戶增加量的兩倍。

The net income for the third quarter of $11 million or $0.15 per diluted share was meaningfully higher than the $3 million in the prior-year quarter. Adjusted EBITDA was $18 million, an increase of 85% year over year, with a 250 basis point expansion of our adjusted EBITDA margin.

第三季淨利為 1,100 萬美元，即稀釋後每股收益 0.15 美元，明顯高於去年同期的 300 萬美元。調整後 EBITDA 為 1,800 萬美元，年增 85%，調整後 EBITDA 利潤率擴大了 250 個基點。

Beyond the numbers, I am excited by our team's execution that has led to continued great progress on the strategic priorities we have outlined on prior calls. Here are some of the key highlights since our update last quarter. First, I am thrilled that we delivered significantly greater efficiencies in our logistics costs year over year than last quarter, contributing to our strong growth in profitability in the third quarter. Expressed as a percentage of net sales, selling and distribution expense decreased by more than 200 basis points year over year and fulfillment expense decreased approximately 30 basis points year over year.

除了數字之外，我對我們團隊的執行力感到興奮，這使得我們在先前的電話中概述的策略優先事項不斷取得巨大進展。以下是自上季更新以來的一些主要亮點。首先，我很高興我們的物流成本同比上季度顯著提高，為我們第三季度盈利能力的強勁增長做出了貢獻。以淨銷售額的百分比表示，銷售和分銷費用年減超過 200 個基點，履行費用年減約 30 個基點。

These impressive results are being driven by successful execution on two important priorities. We continue to make outstanding progress across many initiatives designed to drive efficiencies within our global shipping and logistics operations. Even more exciting, during the third quarter, we achieved incredible further progress on our efforts to reduce our return rate. In fact, our return rate decreased year over year during each month of the third quarter, and by a larger magnitude than the slight year-over-year decrease achieved in the second quarter.

這些令人印象深刻的成果是由兩個重要優先事項的成功執行所推動的。我們在旨在提高全球航運和物流業務效率的許多舉措中繼續取得顯著進展。更令人興奮的是，在第三季度，我們在降低退貨率方面取得了令人難以置信的進一步進展。事實上，我們的回報率在第三季的每個月都年減，而且幅度比第二季的年比小幅下降還要大。

As an illustration of our success, total freight costs for customer shipments and returns decreased by a high-single-digit percentage in the third quarter, despite a 3% increase in the number of orders placed and a 10% year-over-year increase in net sales. These metrics provide an indication of the compelling financial benefits we hope to realize from reducing our return rate further over time.

作為我們成功的例證，儘管訂單數量增長了 3%，同比增長了 10%，但第三季度客戶發貨和退貨的總運費下降了高個位數百分比在淨銷售額中。這些指標表明，隨著時間的推移，我們希望透過進一步降低退貨率來實現令人信服的經濟效益。

Importantly, we achieved a lower return rate in the third quarter through many efforts that further elevate the customer experience. For instance, a size and fit initiative we are testing has resulted in a noticeably lower return rate, while also driving a meaningful lift to the conversion rate. It is a great example of a win-win scenario in that for REVOLVE, the initiative helps us to generate increased revenue at lower costs. And for our valued customers, the improved size and fit information enables us to even further elevate the overall shopping experience.

重要的是，我們透過進一步提升客戶體驗的許多努力，在第三季度實現了較低的退貨率。例如，我們正在測試的尺寸和版型計劃顯著降低了退貨率，同時也顯著提高了轉換率。對於 REVOLVE 來說，這是雙贏的一個很好的例子，該計劃幫助我們以更低的成本增加了收入。對於我們尊貴的客戶來說，改進的尺寸和版型資訊使我們能夠進一步提升整體購物體驗。

Second, we remain committed to efficiently investing to expand our brand awareness and further strengthening our connection with next-generation consumers. We delivered another very strong and efficient quarter with increased customer acquisition at a reduced acquisition cost, driven by year-over-year efficiency gains across performance and brand marketing channels. In fact, it was our most efficient third quarter for marketing investments in four years, based on our marketing investment calculated as a percentage of net sales.

其次，我們仍然致力於有效投資，以擴大我們的品牌知名度，並進一步加強我們與下一代消費者的聯繫。在績效和品牌行銷管道較去年同期效率提升的推動下，我們又實現了一個非常強勁和高效的季度，以更低的獲取成本增加了客戶獲取量。事實上，根據我們的行銷投資佔淨銷售額的百分比計算，這是我們四年來行銷投資效率最高的第三季。

Of note, one contributor to our marketing efficiency in the third quarter also provides a dual benefit of contributing to our reduced return rate. In recent months, we have begun to leverage our extensive internal data to optimize our marketing efficiency by including within our algorithms an understanding of our customer purchase and return behavior. This initiative provides a powerful illustration of the competitive advantages of our data-driven approach to nearly all aspects of our business.

值得注意的是，第三季我們行銷效率的一個貢獻者也提供了雙重好處，即降低了我們的退貨率。近幾個月來，我們開始利用我們廣泛的內部數據，透過在我們的演算法中了解客戶的購買和退貨行為來優化我們的行銷效率。這項措施有力地說明了我們的數據驅動方法在我們業務的幾乎所有方面的競爭優勢。

Third, we successfully expanded our international presence in the third quarter, with net sales from international markets increasing 20% year over year. Net sales increased across all major regions and benefited from recent marketing innovations that have exceeded our expectations and further elevation of service levels overseas. The great progress we have made to improve the international customer experience in recent years now allows us to confidently invest marketing dollars to drive profitable growth in key international markets.

第三，第三季我們成功拓展了國際業務，國際市場淨銷售額年增20%。所有主要地區的淨銷售額均有所增長，這得益於近期超出我們預期的營銷創新以及海外服務水平的進一步提升。近年來，我們在改善國際客戶體驗方面取得了巨大進步，現在使我們能夠自信地投入行銷資金，推動主要國際市場的獲利成長。

And lastly, we continue to leverage AI technology to drive growth and efficiency initiatives across the company, including e-commerce operations, marketing, and customer experience. Last quarter, I talked about how our internal team of data scientists developed and launched into production on our FWRD website an internally developed AI search algorithm that meaningfully outperformed the incumbent retail search platform developed by a large third-party technology company.

最後，我們繼續利用人工智慧技術推動整個公司的成長和效率計劃，包括電子商務營運、行銷和客戶體驗。上個季度，我談到了我們的內部資料科學家團隊如何開發並在 FWRD 網站上投入使用內部開發的人工智慧搜尋演算法，該演算法明顯優於大型第三方技術公司開發的現有零售搜尋平台。

I am excited to share that our internally developed AI search algorithm also tested exceptionally well on our flagship REVOLVE site, and was recently launched into full production on REVOLVE. We estimate that our AI innovation will deliver incremental revenue in the seven figures on an annualized basis, at a much lower operating cost than using third-party technology solutions.

我很高興與大家分享，我們內部開發的人工智慧搜尋演算法在我們的旗艦 REVOLVE 網站上也經過了非常好的測試，並且最近在 REVOLVE 上全面投入生產。我們估計，我們的人工智慧創新將以比使用第三方技術解決方案低得多的營運成本實現年化七位數的增量收入。

Another recent AI development that we are very excited about is our internal development of AI algorithms that are able to better evaluate our products for marketing purposes and expand our marketing reach. Our team developed the AI innovation from concept to A/B testing in just a few weeks during the third quarter.

最近另一個讓我們非常興奮的人工智慧發展是我們內部開發的人工智慧演算法，這些演算法能夠更好地評估我們的產品以用於行銷​​目的並擴大我們的行銷範圍。我們的團隊在第三季僅用了幾週就完成了從概念到 A/B 測試的人工智慧創新。

Most exciting is that early results show that our AI algorithms can deliver a meaningful boost in both revenue and efficiency for one of our largest performance marketing channels. All at a very low operating cost.

最令人興奮的是，早期結果表明，我們的人工智慧演算法可以為我們最大的績效行銷管道之一帶來收入和效率的顯著提升。所有這些都以非常低的營運成本進行。

To summarize, we believe that our improved results on the top and bottom lines are a direct outcome of our team's strong execution on our strategic initiatives. I would like to thank all of my REVOLVE colleagues for their incredible contributions that have driven the business forward this year and strengthened our foundation for future growth.

總而言之，我們相信我們的營收和利潤的改善是我們團隊強而有力地執行策略舉措的直接結果。我要感謝所有 REVOLVE 同事所做的令人難以置信的貢獻，推動了今年的業務發展，並鞏固了我們未來成長的基礎。

We are firmly on offense, and as always, we are focused on testing, learning, and iterating our way towards continued improvement in all aspects of our business. We still have a lot of work to do, yet I feel great about our progress and current momentum in the business.

我們堅定地進攻，並一如既往地專注於測試、學習和迭代，以不斷改進我們業務的各個方面。我們還有很多工作要做，但我對我們的進展和當前的業務勢頭感到非常高興。

Michael will now talk in his remarks about investments in our brands and many growth opportunities that we are very excited about.

邁克爾現在將在演講中談論對我們品牌的投資以及我們感到非常興奮的許多成長機會。

Thanks, Mike, and hello, everyone.

謝謝麥克，大家好。

I am very proud of our top-line and bottom-line results for the third quarter, highlighted by a 7 point improvement in net sales growth, relative to our year-over-year net sales comparison in the second quarter of 2024. The clear takeaway is that our strong Q3 results are a result of our execution on key growth and efficiency initiatives, in spite of the many challenges in our operating environment today. Our hard work has enabled us to drive revenue and reduce costs through a wide range of notable wins including the in-house AI innovations Mike mentioned, reducing our return rate in ways that actually elevate the customer experience, and expanding sales internationally through continued investment and focus.

我對我們第三季的營收和淨利潤結果感到非常自豪，與 2024 年第二季的年淨銷售額相比，淨銷售額成長提高了 7 個百分點。顯而易見的是，儘管我們今天的營運環境面臨許多挑戰，但我們第三季的強勁業績是我們執行關鍵成長和效率措施的結果。我們的辛勤工作使我們能夠透過一系列顯著的勝利（包括麥克提到的內部人工智慧創新）來增加收入並降低成本，以切實提升客戶體驗的方式降低退貨率，並透過持續投資和擴大國際銷售來擴大銷售。

I would also like to speak about incredible and broad-based gains in our merchandising and site experience that have been key contributors to our growth. Notably, site merchandising innovations related to the showcasing of our merchandise assortments performed very well and contributed to the much-improved growth in fashion apparel and dresses in the third quarter.

我還想談談我們在行銷和網站體驗方面取得的令人難以置信和廣泛的成果，這些成果是我們成長的關鍵因素。值得注意的是，與展示我們的商品品種相關的網站行銷創新表現非常好，並為第三季度時尚服裝和連身裙的大幅增長做出了貢獻。

By leveraging AI technology across our e-commerce applications, we have made it easier and more intuitive than ever before for our customers to search our site and navigate through broader categories, such as dresses, improving product discovery for the customer. More than ever, we are also driving increased conversion by leveraging data to optimize the products we merchandise on specific channels to maximize revenue across mobile, desktop, and social.

透過在我們的電子商務應用程式中利用人工智慧技術，我們使客戶比以往任何時候都更容易、更直觀地搜尋我們的網站並瀏覽更廣泛的類別（例如服裝），從而改善客戶的產品發現。我們也比以往任何時候都更利用數據來優化我們在特定管道上銷售的產品，從而最大限度地提高行動、桌面和社交領域的收入，從而提高轉換率。

And by surfacing more relevant products to our customers when and where they are most likely to engage, we have created an even better shopping experience. We also recently delivered an impactful upgrade to our global site navigation, meaningfully improving engagement metrics by surfacing the most relevant products of the greatest interest to our customers. I'd like to thank the merchandising and product teams for their great work this quarter and I'm excited to see what they can deliver going forward.

透過在客戶最有可能參與的時間和地點向他們展示更相關的產品，我們創造了更好的購物體驗。我們最近也對全球網站導航進行了有效的升級，透過展示客戶最感興趣的最相關的產品，有意義地提高了參與度指標。我要感謝銷售和產品團隊在本季所做的出色工作，我很高興看到他們未來能提供什麼。

The merchandising gains are not just limited to the site. In the third quarter, we also achieved improved consumer engagement and revenue from the email channel, also by leveraging technology and data in innovative ways. It was our best third quarter performance for email metrics since 2021 when the consumer spending backdrop was in a much better place. We believe these gains illustrate the strength of our brand connections with next-generation consumers, particularly in the current economic environment.

商品銷售收益不僅限於網站。在第三季度，我們也透過創新方式利用技術和數據，提高了電子郵件管道的消費者參與度和收入。這是自 2021 年以來我們在電子郵件指標方面表現最好的第三季度，當時消費者支出的情況要好得多。我們相信這些收益體現了我們的品牌與下一代消費者的聯繫的強度，特別是在當前的經濟環境下。

I am also pleased with our recent progress in owned brands, a key differentiator of our assortment. In the third quarter, owned brand net sales increased year over year for the first time in almost two years, helped by outstanding results from our recent launches. Our GRLFRND owned brand generated headlines when Taylor Swift was spotted looking stylish while wearing GRLFRND denim in front of an audience of tens of millions of television viewers at a recent Kansas City Chiefs game.

我也對我們最近在自有品牌方面取得的進展感到高興，這是我們產品類別的關鍵差異化因素。在我們最近推出的出色業績的幫助下，第三季自有品牌淨銷售額近兩年來首次同比增長。最近，在堪薩斯城酋長隊的一場比賽中，泰勒·斯威夫特(Taylor Swift) 在數千萬電視觀眾面前穿著GRLFRND 牛仔布，被發現看起來很時尚，我們的GRLFRND 自有品牌成為了頭條新聞。

Most important, the success of our recent launches and the strength in key underlying owned brand metrics give us confidence as we invest into several exciting launches planned for 2025, including collaborations with incredible talent and the planned launch of the Alexandre Vauthier brand and DTC site that we acquired and talked about on our earnings call last quarter.

最重要的是，我們最近推出的產品的成功以及關鍵自有品牌指標的實力給了我們信心，因為我們投資了計劃於2025 年推出的幾項令人興奮的產品，包括與令人難以置信的人才合作以及計劃推出Alexandre Vauthier 品牌和DTC 網站，我們在上個季度的財報電話會議上討論了收購事宜。

Speaking of investing, I am thrilled that we had another very efficient quarter for marketing investment, even while we continue to push the boundaries in exciting new ways to build our brands and drive deeper connections with next-generation consumers.

說到投資，我很高興我們又一個非常有效率的行銷投資季度，儘管我們繼續以令人興奮的新方式突破界限，打造我們的品牌並與下一代消費者建立更深入的聯繫。

I'll now provide a recap of marketing and brand building investments that I am excited about. We hosted a New York Fashion Week activation to celebrate our launch of style icon and media personality Morgan Stewart's Renggli brand on FWRD. Renggli is one of the hottest fashion brands around right now, and FWRD is the first and only retail distribution partner where the Renggli brand is available for sale. The brand has sold incredibly well on FWRD in the early going.

現在，我將回顧一下令我興奮的行銷和品牌建立投資。我們舉辦了一場紐約時裝週活動，以慶祝我們在 FWRD 上推出時尚偶像和媒體名人 Morgan Stewart 的 Renggli 品牌。Renggli 是目前最熱門的時尚品牌之一，FWRD 是第一個也是唯一一個銷售 Renggli 品牌的零售經銷合作夥伴。品牌早期在 FWRD 上的銷售量非常好。

We had a highly successful retail activation in Dallas in partnership with Cotton in September. It was our first ever pop-up shop in Texas and a great way to engage in real life with our growing customer base in the southwest region. Retail sales of our merchandise were outstanding, reinforcing the exciting growth potential in physical retail.

九月，我們與 Cotton 合作在達拉斯進行了一次非常成功的零售活動。這是我們在德州的第一家快閃店，也是我們與西南地區不斷增長的客戶群接觸現實生活的好方法。我們的商品零售銷售表現出色，增強了實體零售令人興奮的成長潛力。

We announced our first-ever global brand ambassador for REVOLVE; international sensation Jeon Somi, one of the most popular female K-Pop artists. We have launched our first-ever global campaign that showcases her iconic style as a fashion trendsetter. We will also introduce a merchandise collaboration to align with her new music in 2025 that we expect will resonate with her expansive and passionate Gen Z audience that includes more than 20 million social followers on Instagram, TikTok, and YouTube.

我們宣布任命 REVOLVE 首位全球品牌大使；國際轟動的 Jeon Somi，最受歡迎的韓國流行音樂女藝人之一。我們推出了首個全球活動，展示她作為時尚潮流引領者的標誌性風格。我們還將在 2025 年推出與她的新音樂相匹配的商品合作，我們預計這將引起她廣泛而熱情的 Z 世代觀眾的共鳴，其中包括 Instagram、TikTok 和 YouTube 上超過 2000 萬的社交粉絲。

And lastly, we executed an impactful marketing activation with NBA legend Dwayne Wade that generated excitement and favorable awareness for our FWRD Man and REVOLVE Man brands. We co-hosted the Miami event to celebrate the unveiling of a bronze statue for the Hall of Famer's illustrious career with the Miami Heat.

最後，我們與 NBA 傳奇人物德韋恩·韋德 (Dwayne Wade) 一起執行了一項富有影響力的營銷活動，為我們的 FWRD Man 和 REVOLVE Man 品牌帶來了興奮和良好的認知度。我們共同主辦了邁阿密活動，慶祝這位名人堂成員在邁阿密熱火隊的輝煌職業生涯的銅像揭幕。

So you can see that we have been very active in engaging with our customers through our dynamic marketing playbook. We intend to continue to keep the pedal down and invest in the large runway ahead of us for years to come.

因此，您可以看到，我們一直非常積極地透過動態行銷手冊與客戶互動。我們打算在未來幾年繼續加大力度，投資眼前的大型跑道。

Now I will conclude with an update on our exploration of physical retail as a future growth opportunity. As announced last week, we are opening an exclusive and limited-time REVOLVE Holiday Shop at the Grove in Los Angeles, a high-end retail and entertainment destination that is the second most productive shopping center in the United States. Our Holiday Shop will remain open through the holiday season until January 5, 2025.

現在，我將總結我們對實體零售作為未來成長機會的探索的最新情況。正如上週宣布的，我們將在洛杉磯 Grove 開設一家獨家限時 REVOLVE 假日商店，這是一個高端零售和娛樂目的地，也是美國第二大生產力最高的購物中心。我們的假日商店將在整個假期季節保持營業，直至 2025 年 1 月 5 日。

On the heels of our incredible holiday season success in Aspen last year, we are thrilled to showcase our REVOLVE and FWRD brands within the most visited holiday shopping destination in Los Angeles. Our prime location in the center of the action positions us to maximize consumer awareness for our brands, acquire new customers, and generate sales.

繼去年在阿斯本假期季節取得令人難以置信的成功之後，我們很高興能在洛杉磯這個訪問量最大的假期購物目的地展示我們的 REVOLVE 和 FWRD 品牌。我們處於活動中心的黃金地段，使我們能夠最大限度地提高消費者對我們品牌的認知度、獲取新客戶並產生銷售。

And in true REVOLVE fashion, we have an exciting slate of marketing events planned for the Holiday Shop, involving our expansive community of brands, influencers, and celebrities. We believe the activations will create even further excitement for the REVOLVE and FWRD brands while driving increasing consumer engagement. We are confident the REVOLVE Holiday Shop will strongly resonate with our loyal community and even further strengthen our connection with next-generation consumers.

在真正的 REVOLVE 風格中，我們為假日商店規劃了一系列令人興奮的行銷活動，涉及我們廣泛的品牌、影響者和名人社群。我們相信，這些活動將為 REVOLVE 和 FWRD 品牌帶來更多興奮，同時推動消費者參與度的提升。我們相信 REVOLVE 假期商店將與我們的忠實社群產生強烈共鳴，甚至進一步加強我們與下一代消費者的聯繫。

Equally exciting, we have also entered into a long-term lease to open a flagship retail store in Los Angeles within a very desirable location. We expect to open our doors by mid-2025. The learnings we will gain from operating our REVOLVE Holiday Shop at the Grove will undoubtedly help us to prepare for a successful opening of our permanent retail location in Los Angeles next year.

同樣令人興奮的是，我們還簽訂了長期租約，在洛杉磯一個非常理想的地點開設旗艦零售店。我們預計在 2025 年中期開業。我們從格羅夫經營 REVOLVE 假日商店中獲得的經驗教訓無疑將幫助我們為明年在洛杉磯成功開設永久零售店做好準備。

We have built an incredible brand that we continue to believe can translate to physical retail, and the opening of our flagship store in Los Angeles next year will be an important proof point in our physical retail journey. The proximity of our home base of Los Angeles provides compelling benefits. Virtually our entire leadership team is based here in Los Angeles, along with our primary fulfillment center, creating meaningful operational and logistics efficiencies.

我們已經建立了一個令人難以置信的品牌，我們仍然相信它可以轉化為實體零售，明年我們在洛杉磯開設的旗艦店將成為我們實體零售之旅的重要證明點。毗鄰我們的總部洛杉磯提供了引人注目的優勢。事實上，我們的整個領導團隊以及我們的主要履行中心都位於洛杉磯，創造了有意義的營運和物流效率。

For instance, we plan to drive foot traffic and provide elevated service to our customers by encouraging them to return items purchased online to the store and to pre-select items from our websites to try on for free in the store. We will provide more details on our next earnings call as we get closer to the launch date.

例如，我們計劃鼓勵顧客將網上購買的商品退回商店，並從我們的網站上預先選擇商品以在商店免費試穿，從而增加客流量並為顧客提供更好的服務。隨著發布日期的臨近，我們將在下一次財報電話會議上提供更多詳細資訊。

To wrap up, we are very pleased with the momentum in our business and excited about the many initiatives underway that we believe will continue to drive growth in the months and years ahead. Rest assured, we will continue to invest, innovate, and aggressively pursue the significant market opportunities that lie ahead.

總而言之，我們對我們業務的發展勢頭感到非常滿意，並對正在進行的許多舉措感到興奮，我們相信這些舉措將在未來幾個月和數年繼續推動成長。請放心，我們將持續投資、創新並積極尋求未來的重大市場機會。

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.

謝謝邁克爾，大家好。

I am very pleased with our third quarter, highlighted by a return to double-digit net sales growth, significant expansion of our profitability year over year, and great progress on operational initiatives that lay the foundation for profitable growth in the future.

我對我們的第三季度感到非常滿意，尤其是淨銷售額恢復兩位數增長，盈利能力同比大幅增長，以及為未來盈利增長奠定基礎的運營計劃方面取得的巨大進展。

I will start by recapping our third-quarter results and then close with updates on recent trends in the business and our outlook for gross margin and cost structure for the balance of the year.

我將首先回顧我們第三季的業績，然後以最新的業務趨勢以及我們對今年剩餘時間的毛利率和成本結構的展望作為結束語。

Starting with the third quarter results, net sales were $283 million, a year-over-year increase of 10%. We delivered meaningfully improved top-line results across both segments and geographies.

從第三季業績開始，淨銷售額為2.83億美元，年增10%。我們在各個細分市場和地區實現了顯著改善的營收績效。

REVOLVE segment net sales increased 12% and FWRD segment net sales were essentially flat year over year. Domestic net sales increased 7% Year-over-year and international net sales increased 20% year over year. Active Customers, which is a trailing 12-month measure, grew to 2.6 million, an increase of 5% year over year.

REVOLVE 部門淨銷售額年增 12%，FWRD 部門淨銷售額基本持平。國內淨銷售額較去年同期成長7%，國際淨銷售額較去年同期成長20%。活躍客戶（過去 12 個月的衡量標準）增至 260 萬，年增 5%。

Total orders placed were 2.2 million, an increase of 3% year over year. Average order value or AOV was $303, an increase of 1% year over year. Consolidated gross margin was 51.2%, a decrease of 56 basis points year over year. In an otherwise exceptional third quarter, gross margin is the one key metric that underperformed our prior expectations, primarily due to deeper markdowns than we had modeled. We understand the underlying dynamics and have course corrected, setting us up for a return to gross margin expansion in 2025.

總訂單量為220萬份，較去年同期成長3%。平均訂單價值或 AOV 為 303 美元，較去年同期成長 1%。綜合毛利率為51.2%，較去年同期下降56個基點。在異常出色的第三季度，毛利率是一個低於我們先前預期的關鍵指標，這主要是由於降價幅度比我們模型預測的要大。我們了解潛在的動態並糾正了方向，為我們在 2025 年恢復毛利率擴張做好了準備。

Let's shift to operating expenses, a source of meaningful operating leverage in the third quarter. We delivered better-than-expected operating expense efficiency across each of the four line items that we guide to each quarter. Fulfillment costs were 3.3% of net sales, a decrease of 29 basis points year over year. Selling and distribution costs were 16.9% of net sales, a decrease of 206 basis points year over year, and outperforming our guidance by approximately 140 basis points. This impressive result reflects outstanding execution by our teams to drive efficiency in our logistics costs and a decrease in our return rate year over year for the second consecutive quarter.

讓我們轉向營運支出，這是第三季有意義的營運槓桿的來源。我們每季指導的四個專案中的每一個專案的營運費用效率都比預期好。配送成本佔淨銷售額的 3.3%，較去年同期下降 29 個基點。銷售和分銷成本佔淨銷售額的 16.9%，年減 206 個基點，超出我們的指導約 140 個基點。這一令人印象深刻的結果反映了我們團隊在提高物流成本效率方面的出色執行力，以及我們的退貨率連續第二季同比下降。

Our marketing investments were 14% of net sales, a decrease of 141 basis points year over year, driven by efficiencies in both performance marketing and brand marketing. General and administrative costs were $33.9 million, approximately $1.6 million lower than our outlook, as the timing for certain investments shifted into the fourth quarter of 2024. We continue to invest in a variety of exciting initiatives, such as exploration of physical retail, AI technology, and owned brands expansion, all of which support our long-term growth opportunity.

在績效行銷和品牌行銷效率的推動下，我們的行銷投資佔淨銷售額的 14%，年減 141 個基點。由於某些投資的時間轉移到 2024 年第四季度，一般和管理成本為 3,390 萬美元，比我們的預期低約 160 萬美元。我們繼續投資各種令人興奮的舉措，例如探索實體零售、人工智慧技術和自有品牌擴張，所有這些都支持我們的長期成長機會。

Our tax rate was 26% in the third quarter, consistent with the prior year and within our expected range. The increased net sales and gross profit year over year, the improved marketing efficiency, and the outstanding progress driving efficiencies in our logistics costs resulted in impressive growth on the bottom line.

第三季我們的稅率為26%，與前一年一致，在我們的預期範圍內。淨銷售額和毛利潤的同比增長、行銷效率的提高以及物流成本效率的顯著進步導致了淨利潤的顯著增長。

Net income grew significantly to $11 million or $0.15 per diluted share from $3 million or $0.04 per diluted share in the third quarter of 2023. Note that the prior-year comparison included non-routine costs of $5 million, net of tax, for a settled legal matter.

2023 年第三季淨利從 300 萬美元或稀釋每股 0.04 美元大幅成長至 1,100 萬美元或稀釋每股 0.15 美元。請注意，去年的比較包括已解決的法律事務的非常規費用 500 萬美元（稅後）。

Adjusted EBITDA was $18 million, an increase of 85% year over year. For the first nine months of 2024, adjusted EBITDA increased 47% year over year. Nine months into 2024, we have already surpassed our net income and adjusted EBITDA results for the full year of 2023.

調整後 EBITDA 為 1800 萬美元，年增 85%。2024 年前 9 個月，調整後 EBITDA 年成長 47%。進入 2024 年已有 9 個月，我們已經超過了 2023 年全年的淨利潤和調整後 EBITDA 業績。

Moving on to the balance sheet and cash flow statemen, net cash generated by operating activities was $9 million and free cash flow was $6 million in the third quarter, which further strengthened our balance sheet, although these metrics were lower year over year.

轉向資產負債表和現金流量表，第三季經營活動產生的淨現金為 900 萬美元，自由現金流為 600 萬美元，這進一步增強了我們的資產負債表，儘管這些指標同比較低。

Inventory at September 30, 2024, was $240 million, an increase of 18% year over year that outpaced our 10% net sales growth. In the coming quarters, we expect growth in our inventory balance year over year to converge more closely with net sales growth, which should have a favorable impact on our cash flow generated from operations.

截至 2024 年 9 月 30 日，庫存為 2.4 億美元，年增 18%，超過我們 10% 的淨銷售額成長。在接下來的幾個季度中，我們預計庫存餘額的同比增長將與淨銷售額增長更加接近，這將對我們的營運現金流產生有利影響。

As of September 30, 2024, cash and cash equivalents on our balance sheet were $253 million, an increase of $8 million from the second quarter of 2024, and we have no debt. Our strong financial position gives us the capacity to continue to invest in the business while opportunistically evaluating strategic M&A and repurchasing Class A common shares to enhance shareholder value. During the third quarter, we repurchased approximately 118,000 Class A common shares at an average price of $15.67. Approximately $58 million remained under our $100 million stock repurchase program as of September 30, 2024.

截至2024年9月30日，我們資產負債表上的現金和現金等價物為2.53億美元，比2024年第二季增加800萬美元，我們沒有債務。我們強大的財務狀況使我們有能力繼續投資業務，同時機會主義地評估策略併購和回購 A 類普通股，以提高股東價值。第三季度，我們以平均價格 15.67 美元回購了約 118,000 股 A 類普通股。截至 2024 年 9 月 30 日，我們 1 億美元的股票回購計畫中仍有約 5,800 萬美元。

Now, let me update you on some recent trends in the business since the third quarter ended and provide some direction on our cost structure to help in your modeling of the business for the fourth quarter and full year 2024.

現在，讓我向您介紹自第三季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，以幫助您對第四季度和 2024 年全年的業務進行建模。

Starting from the top, our strong top-line performance has continued into the fourth quarter with net sales in October 2024 increasing by a low-double-digit percentage year over year with year-over-year growth across both segments and geographies.

從頂部開始，我們強勁的營收表現一直持續到第四季度，2024 年 10 月的淨銷售額同比增長兩位數，各個細分市場和地區均實現同比增長。

Shifting to gross margin, we expect gross margin in the fourth quarter of 2024 of between 51.2% and 51.5%, which implies a decrease of 65 basis points year over year at the midpoint of the range. For the full year 2024, we now expect gross margin to be approximately 52.2%, an increase of around 30 basis points from our gross margin of 51.9% for the full year 2023.

轉向毛利率，我們預計 2024 年第四季的毛利率將在 51.2% 至 51.5% 之間，這意味著該範圍的中點同比下降 65 個基點。對於 2024 年全年，我們目前預計毛利率約為 52.2%，比 2023 年全年毛利率 51.9% 增加約 30 個基點。

The decrease from our prior full-year guidance range primarily reflects deeper markdowns within our markdown inventory that we expect to continue in the fourth quarter, as well as continued pressure on inbound freight costs for receiving merchandise from vendors.

與我們先前全年指導範圍相比的下降主要反映了我們預計第四季度將繼續降價庫存的進一步降價，以及從供應商接收商品的入境貨運成本的持續壓力。

Fulfillment, we expect fulfillment as a percentage of net sales of approximately 3.4% for the fourth quarter of 2024, a decrease of approximately 10 basis points from the fulfillment efficiency ratio in the fourth quarter of 2023. After delivering better-than-expected fulfillment efficiency in the third quarter, we now expect fulfillment costs for the full year 2024 to be approximately 3.3% of net sales, which is at the low end of our prior guidance range.

履約方面，我們預期 2024 年第四季履約佔淨銷售額的百分比約為 3.4%，較 2023 年第四季的履約效率下降約 10 個基點。在第三季實現好於預期的履行效率後，我們現在預計 2024 年全年的履行成本約為淨銷售額的 3.3%，處於我們先前指導範圍的低端。

Selling and Distribution, we expect Selling and Distribution costs as a percentage of net sales of approximately 17.3% for the fourth quarter of 2024, which implies a year-over-year improvement of approximately 50 basis points.

銷售和分銷，我們預計 2024 年第四季銷售和分銷成本佔淨銷售額的百分比約為 17.3%，這意味著同比改善約 50 個基點。

On the heels of our strong third-quarter results, for the full year 2024, we now expect selling and distribution costs to improve to approximately 17.5% of net sales, nearly a full point lower than the full year of 2023.

繼第三季強勁業績之後，我們現在預計 2024 年全年銷售和分銷成本將改善至淨銷售額的 17.5% 左右，比 2023 年全年低近一個百分點。

Marketing, we expect our marketing investment in the fourth quarter of 2024 to be approximately 15.9% of net sales, a decrease of around 50 basis points year over year.

行銷方面，我們預期2024年第四季的行銷投資約為淨銷售額的15.9%，年減約50個基點。

For the full year 2024, we now expect our marketing investment to represent approximately 15.1% of net sales. Looking ahead, we will continue to invest in building our brands to support the attractive long-term growth opportunity ahead of us. So on a preliminary basis, I would expect marketing costs in the 15% to 16% of net sales range for 2025.

對於 2024 年全年，我們目前預計行銷投資將佔淨銷售額的 15.1% 左右。展望未來，我們將繼續投資建立我們的品牌，以支持我們面前有吸引力的長期成長機會。因此，初步預計 2025 年行銷成本將佔淨銷售額的 15% 至 16%。

General and Administrative, as I mentioned earlier, the timing of some of our G&A investments shifted from the third quarter to the fourth quarter. With that, we expect G&A expense of approximately $35.6 million in the fourth quarter. For modeling purposes, remember that our G&A expense in the fourth quarter of 2023 a year ago included a non-routine accrual of $3.4 million for a then-pending legal matter.

一般和行政管理，正如我之前提到的，我們的一些一般管理投資的時間從第三季度轉移到了第四季度。據此，我們預計第四季的一般管理費用約為 3,560 萬美元。出於建模目的，請記住，我們一年前 2023 年第四季的一般管理費用包括因當時懸而未決的法律問題而產生的 340 萬美元的非常規應計費用。

For the full year 2024, we now expect G&A expense of approximately $136 million, towards the lower end of our prior guidance range. And lastly, we expect our effective tax rate to be around 25% to 26% in the fourth quarter and 26% for the full year 2024.

對於 2024 年全年，我們目前預計一般管理費用約為 1.36 億美元，接近我們先前指導範圍的下限。最後，我們預計第四季的有效稅率約為 25% 至 26%，2024 年全年的有效稅率約為 26%。

To recap, I am very encouraged by our third-quarter results, highlighted by an inflection in our top-line growth and operating discipline that drove a substantial increase in profitability year-over-year.

回顧一下，我對我們第三季的業績感到非常鼓舞，特別是我們的營收成長和營運紀律的變化推動了獲利能力較去年同期大幅成長。

Now we'll open it up for your questions.

現在我們將打開它來回答您的問題。

(Operator Instructions)

（操作員說明）

Oliver Chen, TD Cowen

奧利佛陳，TD Cowen

Hi, Mike, Mike, and Jesse. The revenue growth is impressive. At the moment, it sounds like it continues. How do you reconcile that relative to what you said on deeper markdowns and any category callouts in terms of stronger relative to weaker?

嗨，麥克，麥克和傑西。收入成長令人印象深刻。目前看來，這種情況還在持續。您如何將這一點與您在更深層次降價和任何類別標註中所說的強弱對比進行協調？

Also, as you continue to innovate physically, should we think about your strategy longer term as flagship and that being an opportunity in different places or any context in how you're thinking more broadly about physical?

此外，隨著您繼續在身體上進行創新，我們是否應該考慮您作為旗艦的長期策略，並將其作為您在如何更廣泛地思考身體方面的不同地方或任何背景下的機會？

And finally, Jesse, the longer-term algorithm, it calls for in the double-digit net sales growth in the -- as much as in the 20%s. So what are you thinking as we look towards longer-term, like how can you get closer to that over. time? Thank you.

最後，傑西，長期演算法，它要求兩位數的淨銷售額成長——高達 20%。那麼，當我們展望更長期時，您在想什麼，例如如何更接近這一目標。時間？謝謝。

Sure. So I'll start by addressing the revenue growth in the quarter. So we feel great with the acceleration in revenue growth. And actually, as far as it relates to the markdowns, our full-price sales was actually up here every year. So it's just deeper markdowns on some of our inventory that led to the decreased margin.

當然。因此，我將首先討論本季的營收成長。因此，我們對收入成長的加速感到高興。事實上，就降價而言，我們的全價銷售額實際上每年都在上升。因此，只是我們的一些庫存大幅降價，導致了利潤率下降。

Revenue gains, we think, a result of some really great marking activities and marketing efficiency, site merchandizing gains that we've done that Michael talked about, including curated product assortments and then also some of the AI improvements made on site. So yeah, we feel great about the momentum there. The inventory levels in certain categories were (inaudible) coming in and that's what led to the increase (inaudible)

我們認為，收入的成長是由於一些非常出色的標記活動和行銷效率，以及我們所做的邁克爾談到的網站行銷收益，包括策劃的產品分類，以及網站上進行的一些人工智慧改進。所以，是的，我們對那裡的勢頭感覺很好。某些類別的庫存水準（聽不清楚）正在增加，這就是導致增加的原因（聽不清楚）

Yeah. And then maybe I'll jump in there, Oliver. Oh, sorry, I was going to jump in on that last one with the long term algorithm. Of course, we feel great about returning to double digit sales growth for the third quarter and that continued into October. So it feels good to be back in that double digit zone as we look ahead. You know, there's a lot of macro factors out there and uncertainty, but given everything that the team's been working on this past year, we feel good about the things we can control and getting back up into that closer to 20% zone over time.

是的。然後也許我會跳進去，奧利佛。哦，抱歉，我本來打算用長期演算法來討論最後一個問題。當然，我們對第三季銷售額恢復兩位數成長感到高興，而這種成長一直持續到十月。因此，展望未來，回到兩位數區域感覺很好。你知道，存在著許多宏觀因素和不確定性，但考慮到團隊去年所做的一切，我們對我們可以控制的事情感到滿意，並隨著時間的推移回到接近 20% 的區域。

And regarding physical, our strategy is, well, definitely, ever evolving. We have the one store [in Aspen], which is going great with continue from -- and a larger store in Los Angeles. I wouldn't hesitate to call it a flagship at this point. We think it's going to be a really strong effort. But on the big scale of things, it's smaller than stores of competition locally and such. So there's a lot of opportunity for evolved balance pay book. We'll be -- we'll learn very, very quickly, iterate and expand and the strategy will get better and better after every store that will be open.

至於身體方面，我們的策略肯定是在不斷發展的。我們在[阿斯彭]有一家商店，並且在洛杉磯還有一家更大的商店，該商店的經營狀況非常好。在這一點上，我會毫不猶豫地將其稱為旗艦。我們認為這將是一項非常強大的努力。但從大的規模來看，它比本地的競爭商店等要小。因此，平衡工資簿的發展有許多機會。我們將非常非常快速地學習、迭代和擴展，並且在每家商店開業後，策略都會變得越來越好。

Anna Andreeva, Piper Sandler.

安娜·安德烈娃，派珀·桑德勒。

Great. Thanks so much. And let me add my congrats. Great results.

偉大的。非常感謝。讓我表示祝賀。很好的結果。

A couple of questions from us. Really good to see that double-digit strength at REVOLVE. And you guys have talked about expanding in two new categories there, like work and athletic, to capture more of the wallet share. Just curious, is that starting to kick in now in a bigger way? Are you picking up new customers at the brand from the luxury shake up or is that still ahead? And I think you mentioned both brands are positive in October. Would be great to hear what's driving improvement forward. And then we had an inventory follow-up as well. Thanks.

我們有幾個問題。很高興看到 REVOLVE 達到兩位數的實力。你們已經討論過要在那裡拓展兩個新類別，例如工作和運動，以獲取更多的錢包份額。只是好奇，現在是否開始以更大的方式發揮作用？您是否正在從奢侈品牌的變革中吸引新客戶，或者這種情況仍然存在嗎？我想你提到這兩個品牌在十月都是正面的。很高興聽到是什麼推動了進步。然後我們還進行了庫存追蹤。謝謝。

I think regarding the expansion and penetration, we're starting to see wins there, but it's still very early innings. I don't think it's going to be the surge of immediate impact, but it's going to be compounded gains for many, many years to come. So internally, we see great progress in some of the newer zones, but also, still see tons of wide-open white space and some of the other zones. So it should be a lot of ongoing journey.

我認為關於擴張和滲透，我們已經開始看到勝利，但現在還處於早期階段。我認為這不會立即產生巨大的影響，但在未來許多年裡將會帶來複合收益。因此，在內部，我們看到一些較新的區域取得了巨大進步，但也仍然看到大量開放的空白區域和其他一些區域。所以這應該是很多持續的旅程。

I do think that with the disruption, the luxury space, I think, that there is not direct but kind of like anecdotal evidence that this is benefiting us and also will be something that we'll be seeing for many years to come. We can't say that this particular half thing caused this particular effect. But we have to think that with the challenges in the space and us operating well that we will be winning new customers over and winning in the marketplace.

我確實認為，隨著奢侈品領域的顛覆，我認為，沒有直接的但類似軼事的證據表明這對我們有利，而且也將是我們在未來很多年都會看到的事情。我們不能說這特定的一半事物導致了這種特定的效果。但我們必須認為，隨著該領域的挑戰和我們的良好運營，我們將贏得新客戶並贏得市場。

Great. And just the strength in October and specifically at FWRD. And thank you.

偉大的。十月的實力，尤其是 FWRD 的實力。謝謝你。

Yeah, we did see that strength continue into October. And encouragingly, it was across both segments and geographies as well. So really good to see that growth coming there, and in particular, as you mentioned to see growth coming out of the FWRD business. Nothing really further to comment there.

是的，我們確實看到這種勢頭持續到十月。令人鼓舞的是，它也跨越了兩個細分市場和地區。很高興看到那裡的成長，特別是正如您所提到的看到 FWRD 業務的成長。沒有什麼可以進一步評論的。

Okay. Terrific. And just on the inventories, I think, still a little elevated at up high-teens. Can you just talk about your comfort level by division, especially at FWRD and should we be thinking ending 4Q inventories will be more in line with sales? And thanks, again.

好的。了不起。我認為，就庫存而言，仍處於高位。您能否按部門（尤其是 FWRD）談談您的舒適度？再次感謝。

Yeah. Thanks, Anna. Inventory is still a little bit higher than we would like. Now, that said, we did reduce the spread between net sales and inventory growth from Q2 to Q3. So we're at that 8 point differential now. If you break it up by segment, FWRD is -- the differential is actually much better on FWRD. So we feel like we're in a good place on FWRD. More work to do on REVOLVE. But REVOLVE, as you know, is much easier and quicker to correct than the FWRD side of the business.

是的。謝謝，安娜。庫存仍然比我們希望的要高一些。儘管如此，我們確實縮小了從第二季到第三季的淨銷售額和庫存成長之間的差距。所以我們現在處於8分的差距。如果你把它按段分解，FWRD 是——實際上 FWRD 上的差異要好得多。所以我們覺得我們在 FWRD 上處於一個很好的位置。REVOLVE 上還有更多工作要做。但如您所知，REVOLVE 比業務的 FWRD 方面更容易、更快速地糾正。

So we think it's a shorter-term dynamic and encouraged by exiting the year in a good place and setting us up well for 2025. So if you think about yearend inventory balance, we expect that to decrease from Q3 to Q4 in absolute dollars, and then also, the year-over-year growth rate also coming down and converging closer with net sales. And of course, all of this depends on the net sales growth in Q4. But we feel like we're on a good path. We just have a little bit more work to do there.

因此，我們認為這是一種短期動態，並以良好的狀態結束這一年並為我們為 2025 年做好準備而受到鼓舞。因此，如果你考慮年末庫存餘額，我們預計從第三季度到第四季度，以絕對美元計算，庫存餘額將會下降，而且同比增長率也會下降，並與淨銷售額更加接近。當然，這一切都取決於第四季的淨銷售額成長。但我們感覺我們正走在一條好的道路上。我們還有一點工作要做。

Nathan Feather, Morgan Stanley.

內森費瑟，摩根士丹利。

Hey, everyone. Thanks for taking the question. And really encouraging results.

嘿，大家。感謝您提出問題。結果確實令人鼓舞。

I guess, just first on return rate, great to see the progress there. I guess high level, can you talk to how much of that was due to policy changes versus tech improvements? And do you expect to continue a similar piece of improvement as we think about 4Q and heading into 2025 and any opportunity potentially improve that a bit? Thanks.

我想，首先是回報率，很高興看到那裡的進展。我想高層，您能談談其中有多少是由於政策變化和技術改進造成的嗎？當我們考慮第四季度並進入 2025 年時，您是否期望繼續進行類似的改進，以及是否有任何可能稍微改進這一點的機會？謝謝。

Yeah, definitely. So we didn't run a controlled A/B test with the return rate policy change just because it would be too confusing for customers. That said, the data that we have suggests it had, call it, an important contribution or a meaningful contribution, but certainly, not the dominant factor at play with the return rate reduction.

是的，絕對是。因此，我們沒有對退貨率政策變更進行受控 A/B 測試，因為這會讓客戶感到過於困惑。也就是說，我們掌握的數據表明，它具有重要貢獻或有意義的貢獻，但肯定不是導致回報率下降的主導因素。

As we stated on previous calls, it's really a whole host of things across the board focused on really improving the customer experience, better optimizing product assortments for customers to find things that they're going to like, better communicating information to product to customers regarding sizing and fit and things of that nature. And so it was really just a combined effort across the board.

正如我們在先前的電話會議中所說，這確實是一系列全面的事情，重點是真正改善客戶體驗，更好地優化產品分類，讓客戶找到他們會喜歡的東西，更好地向客戶傳達產品資訊尺寸和合身性以及類似性質的東西。所以這其實只是一個全面的共同努力。

In terms of the pace of improvements, I do think the pace of improvements will slow down. It's been a big focus for us. And we've rolled out a number of really important projects for us really in there, but it is going to be a continued effort over the medium term, over the long term, and we're hopeful that we're going to continue to get games there in the coming quarters. I think you'll see the level of sharp acceleration that you did in this (technical difficulty) call it in Q4 or kind of any particular quarter coming up.

就改進速度而言，我確實認為改進速度會放緩。這一直是我們關注的焦點。我們已經在那裡推出了許多對我們來說非常重要的項目，但這將是中期、長期的持續努力，我們希望我們能夠繼續在接下來的幾個季度在那裡玩遊戲。我認為您會看到您在第四季度或即將到來的任何特定季度中所做的（技術難度）急劇加速的水平。

Yeah, and maybe, Nathan I'll just jump in there really quick and highlight some comp differences for Q4 of last year. Historically, we do see a reduction in return rate sequentially from 3Q to 4Q in the zone of, call it, 70 basis points. Last year, there was a significant decrease from Q3 to Q4, close to 2 points. So just keep that in mind as you model the return rate for Q4 . Internally, we're modeling closer to that more natural seasonal differential versus that significant difference we had last year.

是的，也許，內森，我會很快跳到那裡並強調去年第四季的一些比較差異。從歷史上看，我們確實看到回報率從第三季到第四季連續下降，幅度為 70 個基點。去年Q3到Q4明顯下降，接近2個百分點。因此，在為第四季度的回報率建模時請記住這一點。在內部，我們的模型更接近更自然的季節性差異，而不是去年的顯著差異。

Great. That's helpful. And then can you just talk about the pacing of revenue acceleration as you went through 3Q, given it was not as strong but still a good [start of the quarter]?

偉大的。這很有幫助。然後，您能否談談第三季營收加速的節奏，因為它雖然不那麼強勁，但仍然不錯[本季開始]？

Yeah. As we had come into the last quarter, we had said that July was up mid-single digits and then we closed at plus 10%, so there was acceleration in the quarter and across again, both segment and geography. And again, just to reiterate that October, we saw growth across all cuts of the business, both domestic international and REVOLVE and FWRD. So on a good path thus far.

是的。當我們進入上個季度時，我們曾說過7 月的漲幅為中個位數，然後我們收盤價上漲了10%，因此本季以及整個季度都出現了加速，無論是細分市場還是地理區域。再次重申，10 月份，我們看到了所有業務部門的成長，包括國內國際、REVOLVE 和 FWRD。到目前為止，一切進展順利。

Michael Binetti, Evercore ISI.

邁克爾·比內蒂，Evercore ISI。

Hey, guys. Thanks for taking our question. Congrats on a great quarter. Jesse, as you look out to 2025 a little bit on a few of your comments, could you walk us through any early thoughts on what the leverage points are in the P&L for 2025 on distribution, marketing, G&A? Do those lever on the mid-single-digit sales growth, like we've seen in a few quarters this year? And I just use that as an example for work and censuses. Next year, I know, you'd aspire to do better. Maybe just help us early think about the leverage points in the model.

嘿，夥計們。感謝您提出我們的問題。恭喜您度過了一個出色的季度。Jesse，當您對 2025 年進行一些評論時，您能否向我們介紹一下關於 2025 年損益表中分銷、營銷、一般行政費用的槓桿點的任何早期想法？正如我們今年幾季所看到的那樣，這些因素是否會推動中等個位數的銷售成長？我只是用它作為工作和人口普查的例子。我知道，明年你會渴望做得更好。也許只是幫助我們儘早思考模型中的槓桿點。

And then I'm curious if there's anything in that October low-double-digit number that was unusual to think about either this October or in the comparison that would roll off as we think about the rest of the quarter. It looks like the comparisons get a little easier from here actually, which could lead us to believe there's potential for an acceleration. I just want to make sure we're not missing anything.

然後我很好奇，在 10 月份的低兩位數數字中是否有任何東西在今年 10 月份或在我們考慮本季度剩餘時間時會下降的比較中是不尋常的。實際上，從這裡開始比較似乎變得更容易了，這可能會讓我們相信有加速的潛力。我只是想確保我們沒有遺漏任何東西。

Yeah. Yeah, absolutely. So for 2025, maybe if we start -- I know you didn't mention it but starting with gross margin, we do think there is opportunity in gross margin. Exiting the year, the plan is to be in a good inventory position. Full price sales have been really strong, so we expect that to continue into 2025. Now the expansion will be lower or less in the first half of the year versus the second half of the year in part due to comps, and then in part, as we start to roll on the owned brand launches that Michael mentioned in his prepared remarks. So we do see opportunity in gross margin, first of all. And that's regardless of net sales or any leverage points.

是的。是的，絕對是。因此，對於 2025 年，也許我們可以從毛利率開始——我知道你沒有提到，但從毛利率開始，我們確實認為毛利率有機會。今年結束時，計劃是保持良好的庫存狀況。全價銷售非常強勁，因此我們預計這種情況將持續到 2025 年。現在，上半年的擴張將比下半年更低或更少，部分原因是由於競爭，部分原因是我們開始推出邁克爾在準備好的演講中提到的自有品牌。因此，我們首先確實看到了毛利率方面的機會。這不考慮淨銷售額或任何槓桿點。

If we go down the line fulfillment, some opportunity there. Much of this is dependent on return rate. And if we can continue that return rate reduction and less dependent on the sales growth on that one. Similar with selling and distribution, we again do see opportunity there.

如果我們繼續履行使命，就會有一些機會。這很大程度上取決於回報率。如果我們能夠繼續降低退貨率，並減少對銷售成長的依賴。與銷售和分銷類似，我們再次看到了那裡的機會。

Now there is challenges on fuel and then also somewhat dependent on the return rate, but the team's done a great job -- absent those things and really managing those costs down and getting more efficient there. Marketing, we had mentioned in our prepared remarks that we expect marketing to be in the 15% to 16% zone. And I think the key there is we want to communicate that we're going to continue to invest. We have a lot of exciting things coming up in 2025. So not to model in the 14%s that we've been seeing but modeling some investment.

現在燃料方面存在挑戰，而且在某種程度上取決於回報率，但團隊做得很好——沒有這些事情，並且真正管理了這些成本並提高了效率。行銷，我們在準備好的發言中提到，我們預計行銷將在 15% 到 16% 的範圍內。我認為關鍵是我們想要傳達我們將繼續投資的訊息。2025 年我們將會發生很多令人興奮的事情。因此，不要對我們所看到的 14% 進行建模，而是對一些投資進行建模。

And general and administrative, that's the one that is really dependent on sales growth. And there's some moderate leverage in the mid-single-digit net sales growth. But ideally, we continue the double-digit sales growth and that's where we start to get a meaningful leverage if we can exceed that.

一般和管理方面，這才是真正依賴銷售成長的方面。中等個位數的淨銷售額成長有一定的適度槓桿作用。但理想情況下，我們將繼續保持兩位數的銷售成長，如果我們能夠超過這個數字，我們就開始獲得有意義的影響力。

And then just really quick on the Q4 and the comps there, I think if you look at October today, we said we're low-double digits. Last year, we had commented that October was down low-single digits and we closed at [minus 1%.] Also, although I hate to do it, if you look on a multi-year basis, the comps do get tougher for November and December. And there's just still a lot of uncertainty out there in the macro environment. Pick your cause but I think there's just still uncertainty there. So internally if it helps, we are modeling in some moderation in November and December.

然後就快速了解第四季度和那裡的比較，我想如果你看看今天的十月，我們說我們是低兩位數。去年，我們曾評論說10 月下跌了低個位數，我們收盤價為[負1%]。得更艱難和十二月。宏觀環境仍然存在許多不確定性。選擇你的原因，但我認為仍然存在不確定性。因此，如果有幫助的話，我們內部會在 11 月和 12 月進行一定程度的建模。

Mark Altschwager, Baird.

馬克·阿爾茨瓦格，貝爾德。

Thank you. Good afternoon. Great quarter.

謝謝。午安.很棒的季度。

The sales acceleration you're seeing does seem to run counter to some of the broader industry and macro environment. Can you give us a little bit more context on what you think is driving the improvement? I guess, what changed on the merchandizing side that really seemed to click this quarter?

您所看到的銷售加速似乎確實與一些更廣泛的行業和宏觀環境背道而馳。您能否向我們提供更多背景信息，說明您認為推動改進的因素是什麼？我想，本季商品銷售方面發生的哪些變化似乎真正引起了人們的注意？

I guess, similar question regarding the email channel, you mentioned some efficiencies there. I guess, what's happening now that seems to be contributing to this pretty significant acceleration in the business? It's just really looking to double click on that.

我想，關於電子郵件管道的類似問題，您提到了那裡的一些效率。我想，現在發生的事情似乎促成了業務的顯著加速？只是真的想雙擊它。

And then separately, Jesse, just want to clarify. You said you feel confident you can continue to progress towards the 20% growth algo versus the double digit you're running right now. You know, street consensus as the company growing revenue mid-single digits next year, so is the takeaway here that you're comfortable sustaining low-double-digit growth in 2025, potentially even accelerating? I just want to be clear we're all taking away the right thing there. Thank you.

然後，傑西，我想單獨澄清一下。您說您有信心繼續朝著 20% 的成長演算法前進，而不是現在運行的兩位數成長演算法。你知道，隨著公司明年的營收成長中個位數，街頭共識是，你是否願意在 2025 年維持低兩位數的成長，甚至可能加速？我只是想澄清一下，我們都在拿走正確的東西。謝謝。

Yeah, maybe I'll start with that one and then we can go to first one. I was going to say, yeah, I think, kind of dovetailing off my previous comments that we are modeling in some moderation for Q4. Now, we're optimistic that we can continue the double-digit growth as we look ahead. But the 20% target is longer term than 2025. So I think exercising some caution until we get a couple of quarters under our belt. But optimistic with everything the team has been doing that we can continue to grow at a greater pace than the overall environment.

是的，也許我會從那個開始，然後我們可以轉到第一個。我想說，是的，我想，這與我之前的評論相吻合，即我們正在對第四季度進行一定程度的建模。現在，我們樂觀地認為，展望未來，我們可以繼續保持兩位數的成長。但 20% 的目標是比 2025 年更長的目標。因此，我認為在我們掌握幾個季度之前要謹慎行事。但對團隊所做的一切持樂觀態度，我們可以繼續以比整體環境更快的速度成長。

Yeah, and with regards to the revenue acceleration, we have an incredibly strong brands, huge market opportunity. We've underperformed for a number of quarters against that opportunity, against that brand. But we think -- we've been making really great improvements quarter over quarter to really attack that opportunity in the right way. And I think, this quarter, you're starting to see a lot of things come together as far as us more fully capitalizing on the really big opportunity.

是的，就收入加速而言，我們擁有令人難以置信的強大品牌和巨大的市場機會。在這個機會、這個品牌面前，我們已經連續幾季表現不佳。但我們認為，我們每個季度都取得了巨大的進步，以正確的方式真正抓住這個機會。我認為，本季度，您將開始看到很多事情結合在一起，讓我們能夠更充分地利用真正的巨大機會。

Matt Koranda, Roth Capital.

馬特·科蘭達，羅斯資本。

Hey, guys. Thanks for taking the question. Just getting back to return rates. Do you see any structural impediments to getting back to the pre-pandemic return rates that you had? Just curious, how long it could take to get there and any reason we can't get back to kind of that low- to mid-50%s return rate that you were on pre-pandemic?

嘿，夥計們。感謝您提出問題。回到退貨率。您是否認為恢復疫情前的報酬率有任何結構性障礙？只是好奇，需要多長時間才能達到這一目標，以及我們無法恢復到大流行前 50% 左右的低迴報率的原因是什麼？

Yeah, I mean, I think the question is how we get back there. We've talked many times how we want to do so in a way that's beneficial to the business across the board, not just to hit a certain number. And so that's certainly a number that we would aspire to. But our focus is just coming up with meaningful improvements that can improve the business, improve the customer experience, and hopefully, improve the return rate quarter after quarter. And we'll see where that takes us in the coming quarters.

是的，我的意思是，我認為問題是我們如何回到那裡。我們已經多次討論過我們希望如何以對整體業務有利的方式做到這一點，而不僅僅是達到某個數字。所以這肯定是我們渴望達到的數字。但我們的重點只是提出有意義的改進，可以改善業務，改善客戶體驗，並希望逐季提高回報率。我們將看看未來幾季我們會走向何方。

Yeah, the one thing I would add that is retail being in its early days. This will be several years to get there. But I think physical retail and having that a bigger part of our mix has tremendous opportunities to reduce return rates with the more omni-channel approach as well as do it in a marginally accretive way, both from a margin perspective and cost perspective. So that is something that we won't see necessarily quarter to quarter. But if you have the seats that we have in here in a decade long look, I think we're very opportunistic for reduced return rates through retail over the long term.

是的，我要補充的一件事是零售業還處於早期階段。這將需要幾年的時間才能實現。但我認為，無論是從利潤角度還是成本角度來看，實體零售以及在我們的組合中佔有更大的比例，都有巨大的機會透過全通路方法降低退貨率，並以邊際增值的方式做到這一點。因此，我們不一定會每個季度都看到這種情況。但如果你看看我們在十年內擁有的席位，我認為從長遠來看，我們非常有機會透過零售來降低退貨率。

Rick Patel, Raymond James.

瑞克·帕特爾，雷蒙德·詹姆斯。

Hey, guys. Congrats on the strong execution. Can you talk about trends by month? Curious if there's anything to call out in terms of consumer behavior as 3Q progressed? It'd be great to get additional color around both REVOLVE and FWRD banners.

嘿，夥計們。祝賀強大的執行力。能按月談談趨勢嗎？想知道隨著第三季的進展，消費者行為方面是否有什麼值得關注的地方？如果 REVOLVE 和 FWRD 橫幅周圍有額外的顏色那就太好了。

Yeah, nothing really additional to call out. We did see acceleration through the quarter. It was across both segments. Categories performed really well. Dresses were up 10%. Fashion apparel was up 13%. So those core categories really performing. International had a great quarter at 20% growth, with growth across all regions, which was really impressive even in China, which has been struggling more broadly.

是的，沒有什麼真正需要指出的。我們確實看到了整個季度的加速成長。它橫跨兩個部分。類別表現非常好。連身裙上漲了 10%。時尚服飾上漲 13%。所以這些核心類別確實表現出色。國際業務季度成長率高達 20%，所有地區均實現成長，即使在整體上陷入困境的中國，這也確實令人印象深刻。

So I think just an overall great quarter with some acceleration as we progress through the quarter, but nothing really additional to call out there outside of the execution from the team that we've been talking about.

因此，我認為這是一個整體出色的季度，隨著我們在整個季度的進展，我們取得了一些加速，但除了我們一直在談論的團隊的執行之外，沒有什麼真正值得稱讚的。

And can you double-click on owned brands? Good to see the growth there. How do you -- how big do you see that business at the end of the year? And given the investments you're making, where do you see this segment going to in 2025? And also if I can add, can you update us on the margin delta between owned brand and third party right now?

您可以雙擊自有品牌嗎？很高興看到那裡的成長。您認為今年底該業務有多大？考慮到您正在進行的投資，您認為 2025 年該細分市場將走向何方？另外，如果我可以補充一下，現在可以更新我們自有品牌與第三方之間的利潤增量嗎？

Yeah, we feel great about owned brands. The underlying metrics have been performing really well, which was the goal, to get those underlying metrics in a really good place before we start pushing the pedal down on expansion. So we're there. Now is the time when we're going to start expanding. We've got some exciting things coming up in 2025. That said, it does take some time for these things to spin up.

是的，我們對自有品牌感覺很好。基礎指標一直表現得非常好，這就是我們的目標，在我們開始踩下擴張踏板之前，讓這些基礎指標處於非常好的位置。所以我們就在那裡。現在是我們開始擴張的時候了。2025 年我們將迎來一些令人興奮的事情。也就是說，這些事情的啟動確實需要一些時間。

So I think towards the back end of '25 is when we start -- in 2H '25 when we start to see some expansion in the owned brand mix. It was great to see this quarter owned brand sales were positive for the first time in a while. That said, the mix was lower, slightly lower year on year, given that third party grew in excess of that owned brand but feel really good there. And over time, it can be much bigger than it is today, not commenting or committing to a percentage. As you recall, it was 36% back in 2019. And great that REVOLVE margin is loosely in the same zone today as it was in 2019 with a much lower mix of owned brands.

因此，我認為在 25 年末，我們開始——在 2H 25 年，我們開始看到自有品牌組合的一些擴張。很高興看到本季自有品牌銷售額一段時間以來首次出現正值。也就是說，考慮到第三方的成長超過了自有品牌，但其組合較低，同比略有下降，但感覺非常好。隨著時間的推移，它可能會比今天大得多，不發表評論或承諾百分比。您還記得嗎，2019 年這數字是 36%。令人高興的是，如今 REVOLVE 的利潤率與 2019 年大致處於同一區域，自有品牌的比例要低得多。

And then on the margin differential, we're not getting specific there other than to say it is significantly better than the third-party margin. So over time, of course, as owned brand expansion increases, then that's a big margin driver.

然後，關於利潤率差異，我們沒有具體說明，只是說它明顯優於第三方利潤率。當然，隨著時間的推移，隨著自有品牌擴張的增加，這將成為一個巨大的利潤驅動因素。

Jay Sole, UBS.

傑伊·索爾，瑞銀集團。

Great. Thank you so much. Mike, you talked about investing in AI and you mentioned how some of the newer investments are in AI innovation is helping with product and helping sounds like boost some sales. Could you just maybe elaborate a little bit on what you're talking about? Like what exactly you're doing with AI to help the product assortment and help drive sales at a lower cost?

偉大的。太感謝了。麥克，您談到了對人工智慧的投資，並提到了人工智慧創新的一些新投資如何幫助產品發展，聽起來像是促進了一些銷售。您能否詳細說明一下您正在談論的內容？就像您正在利用人工智慧來幫助產品分類並幫助以更低的成本推動銷售一樣？

Yeah, definitely. It's all about showing the right product to the right customer at the right time. And AI has a huge long-term potential in terms of doing that well. And we've already found a number of areas that we can deploy it to have what is shown to us by A/B test that we run to make significant improvements in the site experience and conversion rate.

是的，絕對是。這一切都是為了在正確的時間向正確的客戶展示正確的產品。人工智慧在這方面具有巨大的長期潛力。我們已經找到了許多可以部署它的領域，以便透過我們運行的 A/B 測試向我們展示什麼，從而顯著改善網站體驗和轉換率。

So we talked about the search improvements in the search algorithm. On the broader site in terms of when customers are just browsing other pages, there's some things that we've deployed within the past quarter, in particular, and then even several quarters before that are AI based that have helped improve conversion rates significantly.

所以我們討論了搜尋演算法中的搜尋改進。在更廣泛的網站上，當客戶只是瀏覽其他頁面時，我們在過去一個季度甚至之前的幾個季度部署了一些基於人工智慧的東西，這些東西幫助顯著提高了轉換率。

So without getting into the very specific details of exactly what we do and how, it's been very impactful and we think the future is potentially huge there as far as the further impact that it can make over time. And then the other thing that we mentioned, which is off site, is just deploying improvements to our marketing approach. And we did some great things this quarter, some of which had nothing to do with AI and some of which were AI based. And so yeah, it's been very impactful to the business.

因此，如果不深入了解我們具體做什麼以及如何做的具體細節，它是非常有影響力的，我們認為，隨著時間的推移，它可以產生進一步的影響，未來可能是巨大的。然後我們提到的另一件事（不在現場）就是對我們的行銷方法進行改進。本季我們做了一些很棒的事情，其中​​有些與人工智慧無關，有些是基於人工智慧的。是的，這對業務產生了非常大的影響。

Lorraine Hutchinson, Bank of America.

洛琳‧哈欽森，美國銀行。

Thank you. Good afternoon. Can you provide more context around the gross margin? And what was different than your plan? Was it a fashion miss or pockets of excess inventory? And then what gives you the confidence in the return to growth in gross margin in 2025?

謝謝。午安.您能否提供更多有關毛利率的背景資訊？與您的計劃有何不同？是時尚失誤還是庫存過剩？那麼是什麼讓您對2025年毛利率恢復成長充滿信心呢？

Yeah. Yeah, it was -- maybe I'll start with what it wasn't. It wasn't the breadth or magnitude of markdowns. Our full-price sales actually exceeded. Full-price sales growth exceeded marked down sales growth , which led to an increase in the full price mix. Also, full price margin was strong. So it really comes down to deeper markdowns within our marked-down inventory. And that's the case across both segments. On the REVOLVE side, we are a little heavy on inventory as we communicated last quarter and still a little bit heavier than we would like, even though the differential between sales growth and inventory growth came down. But still a little heavier there on REVOLVE. So algorithms kick in and mark down that inventory.

是的。是的，它是——也許我會從它不是什麼開始。這不是降價的廣度或幅度。我們的全價銷量實際上超過了。全價銷售成長超過顯著下降的銷售成長，從而導致全價組合增加。此外，全價利潤率也很高。因此，這實際上歸結為我們降價庫存中更深層的降價。這兩個細分市場都是如此。在 REVOLVE 方面，正如我們上季度溝通的那樣，我們的庫存有點重，而且仍然比我們希望的要重一些，儘管銷售成長和庫存成長之間的差異有所縮小。但 REVOLVE 上還是重了點。因此，演算法會啟動並標記庫存。

And then on the FWRD side, we're just at the tail end of that kind of call it older, marked down inventory that led to deeper mark downs. But the FWRD inventory is in a really good place in terms of the sales growth versus inventory growth differential. And again, REVOLVE much easier and quicker to work through than the FWRD side. And that's what gives us the confidence that we'll be in a good position as we enter 2025.

然後在 FWRD 方面，我們正處於這種稱為舊的、降價庫存的尾部，這導致了更深的降價。但就銷售成長與庫存成長差異而言，FWRD 庫存確實處於非常好的位置。再說一次，REVOLVE 比 FWRD 方面更容易、更快速地完成工作。這讓我們充滿信心，相信在進入 2025 年時我們將處於有利位置。

And then, the margin expansion in '25 coming from continued full price strength. FWRD has a lot of room to go, call it 5 point slower today than it was back in 2019. So I give some context around the potential there. And then as we mentioned, owned brands, owned brand extension starting to kick in around the mid-year of 2025.

然後，25 年的利潤率擴張來自持續的全價走強。FWRD 還有很大的發展空間，今天比 2019 年慢了 5 個百分點。所以我給了一些關於那裡潛力的背景資訊。然後，正如我們所提到的，自有品牌、自有品牌延伸將於 2025 年年中左右開始啟動。

Jim Duffy, Stifel.

吉姆·達菲，斯蒂菲爾。

Thank you. Impressive execution. Two lines of questioning for me. First on marketing, then on the deeper markdowns. Key lever for the improvement has been the improved marketing efficiency. You guys listed off a number of factors contributing to this, so did so in fairly rapid fire fashion. Can you speak in more detail about some of the 3Q specific bigger movers in marketing efficiency, maybe isolating on top of funnel strategy shifts, and marketing drivers and then also speak in more detail on the use of AI to improve performance marketing and conversion? Thanks.

謝謝。令人印象深刻的執行力。對我有兩行疑問。首先是行銷，然後是更深層的降價。改善的關鍵槓桿是行銷效率的提升。你們列出了導致這一情況的許多因素，並以相當快的速度列出了這些因素。您能否更詳細地談論一些第三季度行銷效率方面的具體較大推動因素（可能是漏斗策略轉變和行銷驅動因素），然後更詳細地談論使用人工智慧來提高績效行銷和轉換？謝謝。

Yeah, so high level, it was a mix of some top-of-funnel brand marketing, improvements in terms of marketing spend that Michael can potentially add some more color to, and then, changes on the digital marketing side where we saw efficiency gains as well.

是的，如此高水平，它是一些漏斗頂部品牌行銷的組合，行銷支出方面的改進邁克爾可以添加更多色彩，然後是數位行銷方面的變化，我們看到了效率的提高以及。

And there's always a number of things that we're working on but two of the things that we called out earlier where we optimized our marketing to better take into account return behavior of customers, which helped with some efficiency gains there. And then we also deployed AI technology to, call it, better target our products to various marketing opportunities out there. And that led to some gains too.

我們總是在做很多事情，但我們之前提到的兩件事是我們優化了行銷，以更好地考慮客戶的退貨行為，這有助於提高效率。然後我們還部署了人工智慧技術，以便更好地將我們的產品定位到各種行銷機會。這也帶來了一些收穫。

So on the performance side, those were probably the -- some of the more important improvements that we made, and then Michael can maybe talk a little bit about the brand marketing strategy and how that's evolved.

因此，在性能方面，這些可能是我們所做的一些更重要的改進，然後邁克爾也許可以談談品牌行銷策略以及它是如何演變的。

We're seeing that the brand marketing strategy, all that channel differences work with influencers, work with celebrities, continually, continually evolving. And looking back to a year ago, we've made outside looking and maybe subtle, but from the brand marketing lens internally, quite dramatic shifts in the various levers that we have pulled accelerated on as well as divested and such.

我們看到品牌行銷策略、所有管道差異都與影響者、名人合作，不斷發展。回顧一年前，我們從外部觀察，也許是微妙的，但從內部品牌行銷的角度來看，我們加速、剝離等各種槓桿發生了相當戲劇性的變化。

So the shift in allocation has been very helpful and I think we'll transition extremely well into the coming quarter, next year ahead where there's a lot of potential in some of these channels that are still a little bit newer and a little bit like that's historic investment for us. So feeling really good about things.

因此，分配的轉變非常有幫助，我認為我們將非常好地過渡到下一個季度，明年，其中一些管道有很大的潛力，這些管道仍然有點新，有點像對我們來說是歷史性的投資。所以對事情感覺真的很好。

Okay. Thank you. And Jesse, can you comment on the extent to which the deeper markdowns may have influenced revenue or active customer figures? I think you mentioned still healthy mix of full price sales. As you look at the active customers, is there any evidence that that was flattered by engagement with more price sensitive customers?

好的。謝謝。傑西，您能否評論一下更深層的降價對收入或活躍客戶數量的影響程度？我認為您提到了全價銷售仍然健康的組合。當您觀察活躍客戶時，是否有任何證據表明，與對價格更敏感的客戶互動會讓他們感到受寵若驚？

No. Thanks, Jim. And no, it was really isolated to margin. We saw full-price sales increase in excess -- significantly in excess of the marked down sales. And then on the new customer basis as well, full-price customers grew far in excess of the marked-down customer growth as well. So I think it is isolated to margin and really good underlying customer growth from full price customers which, as you know, perform -- tend to perform better over time.

不。謝謝，吉姆。不，它確實被孤立到了邊緣。我們看到全額銷售成長超額——大大超過降價銷售。然後，在新客戶基礎上，全價客戶的成長也遠遠超過了降價客戶的成長。因此，我認為它與利潤率和來自全價客戶的真正良好的潛在客戶成長無關，正如你所知，隨著時間的推移，這些客戶的表現往往會更好。

Dylan Carden, William Blair.

迪倫卡登，威廉布萊爾。

Thank you. Curious on the international side of the business. It's getting to a relatively decent scale, accelerated nicely in the quarter. Sounded like in your prepared remarks, you're putting some marketing dollars behind it and the experience [supporting]. From here, do you expect kind of the level to accelerated growth? And can you maybe speak to regions or initiatives underway as part of how that might roll up? Thanks.

謝謝。對業務的國際面感到好奇。它已經達到了一個相對不錯的規模，並且在本季度得到了很好的加速。聽起來就像在您準備好的演講中，您在其背後投入了一些行銷資金和體驗[支持]。從這裡開始，您預計會達到加速成長的水平嗎？您能否談談正在進行的地區或舉措，作為其如何展開的一部分？謝謝。

Yeah, definitely. So one of the things we're really pleased about within the quarter is that pretty much every region internationally grew in the quarter, which is pretty rare to happen because there's always something going on in some region of the world. And so it's pretty rare to see that. And I think it's certainly a combination of things. Certainly, rebound in some markets from more difficult economic condition in the previous year.

是的，絕對是。因此，本季我們真正感到高興的一件事是，國際上幾乎每個地區都在本季實現了成長，這種情況很少發生，因為世界某些地區總是會發生一些事情。所以這種情況很少見。我認為這肯定是多種因素的結合。當然，一些市場從去年更加困難的經濟狀況中反彈。

Also, we continue to invest in improving service levels worldwide and being able to get the benefit of some of those service enhancements that we've been doing. And then increased market investments, we're able to leverage that level of increased experience and to invest a bit more in marketing and we saw some nice gains from too.

此外，我們繼續投資提高全球服務水平，並能夠從我們一直在做的一些服務增強中受益。然後增加市場投資，我們能夠利用增加的經驗水平並在行銷方面投入更多，我們也從中看到了一些不錯的收益。

The other thing I'd mentioned, kind of, specifically from a regional standpoint is China, particularly for REVOLVE, we saw some really nice growth in -- and long term, we continue to think that's a humongous opportunity for us. It's one of our top markets but it's certainly nowhere near what it could be if we execute really well there.

我提到的另一件事，特別是從地區角度來看，是中國，特別是對於REVOLVE 來說，我們看到了一些非常好的成長——從長遠來看，我們仍然認為這對我們來說是一個巨大的機會。這是我們的頂級市場之一，但如果我們在那裡執行得很好，它肯定還遠遠沒有達到預期的目標。

And if you recall around a year ago, we brought in a new director of that region to focus just on that region. And it's still very early stages, but we think we're starting to get some benefit of those investments of increased focus we've had in the region. And hopefully, some nice growth drivers in there for the quarters and years to come.

如果您還記得大約一年前，我們為該地區引進了一位新總監，專門專注於該地區。現在還處於非常早期的階段，但我們認為我們已經開始從我們對該地區更加關注的投資中獲得一些好處。希望未來幾季和幾年內能出現一些良好的成長動力。

And how do you control, I guess, the margin dilution from -- I know you put some measures in place from an efficiency distribution standpoint. But if there's a sort of disconnect between domestic and international growth that you're seeing, now you are making some nice improvement on fulfillment in particular. But how do you think about how to control that looking into (inaudible)

我想，你如何控制利潤稀釋——我知道你從效率分配的角度採取了一些措施。但如果你看到國內和國際成長之間存在某種脫節，那麼現在你在履行方面取得了一些不錯的進步。但你如何考慮如何控制這種調查（聽不清楚）

Yeah, always a balance. At the end of the day, in general, and this is true for international regions, we invest in areas that have positive incremental margins. So even if in some regions, that margin differential might be a bit lower than, say, domestic, it's still a positive opportunity. And you know, we want to gain share in brand enhancing ways and ways that build our business up wherever we can. And net-net, the international business is very similar and profitably to domestic.

是的，永遠保持平衡。歸根結底，一般來說，對於國際地區來說也是如此，我們投資於具有正增量利潤的領域。因此，即使在某些地區，利潤率差異可能略低於國內等地區，但這仍然是一個積極的機會。你知道，我們希望透過品牌提升方式和盡可能發展我們業務的方式來獲得份額。和net-net一樣，國際業務與國內業務非常相似且利潤豐厚。

There are some differences. There's some benefits as well. The return rate is a bit lower in a number of international regions. And long term, as we grow the international business, it gives us the opportunity to gain efficiencies within that business because we can more smartly distribute and optimize our inventory. Right now, with the current scale of the international business, we're able to put very little inventory on the ground in key international regions like the European region or kind of the Asia-Pacific region.

有一些差異。還有一些好處。在一些國際地區，退貨率略低。從長遠來看，隨著我們國際業務的發展，我們有機會提高該業務的效率，因為我們可以更聰明地分配和優化我們的庫存。目前，以目前國際業務的規模，我們在歐洲地區或亞太地區等關鍵國際地區的地面庫存非常少。

We've recently started putting a bit of inventory on the ground in the European region. It's still quite small. We think there's opportunities to start doing similar, quite small things in the Asia-Pacific region. If we can scale those businesses in a much bigger way over time, there's opportunity for really big efficiency gains.

我們最近開始在歐洲地區儲備一些庫存。它仍然很小。我們認為有機會在亞太地區開始做類似的小事。如果我們能夠隨著時間的推移以更大的方式擴展這些業務，就有機會實現真正巨大的效率提升。

Trevor Young, Barclays.

特雷弗楊，巴克萊銀行。

Great. Thanks. Just first one for me, just to clarify on the acceleration throughout the quarter. Would that imply that October at that up low-double digits is a deceleration from September? And then second question, just any comments on appetite from M&A here and what you're seeing in terms of opportunities on that front.

偉大的。謝謝。對我來說，這只是第一個，只是為了澄清整個季度的加速情況。這是否意味著 10 月的兩位數增幅較 9 月放緩？然後是第二個問題，關於併購的興趣以及您在這方面看到的機會的任何評論。

Yeah, I'll start with the first one. I would call it closer to the same zone as exit rate, not necessarily a deceleration. But keep in mind that low-double digit for October is low-double digit, closer to 10% and exercising some caution as we get into November and December.

是的，我將從第一個開始。我認為它與退出率更接近同一區域，但不一定是減速。但請記住，10 月的低兩位數就是低兩位數，接近 10%，進入 11 月和 12 月時要謹慎行事。

And then the second part of the question, M&A. As we've talked about on previous calls, we're always actively considering possibilities. If there's opportunities that make strategic sense, financial sense, et cetera and so, it's the kind of thing where we're investing resources, actively looking. And if something interesting comes our way, we'll certainly consider acting on it.

然後是問題的第二部分，併購。正如我們在之前的電話中談到的那樣，我們總是在積極考慮可能性。如果存在具有策略意義、財務意義等的機會，我們就會投入資源，積極尋找。如果我們遇到一些有趣的事情，我們肯定會考慮採取行動。

Janine Stichter, BTIG.

珍妮‧史蒂克特 (Janine Stichter)，BTIG。

Hi. Thanks for taking my question and I'll add my congratulations. Want to ask about the long-term EBITDA margins. I think in the past, you've talked to getting to about 15% or mid-teens and you've been close to that in the past. So anything structurally changing that would prohibit you from getting there.

你好。感謝您提出我的問題，我將表示祝賀。想詢問長期 EBITDA 利潤率。我想在過去，你曾談到要達到大約 15% 或十幾歲左右，而且過去你已經接近這個水平了。所以任何結構上的改變都會阻止你到達那裡。

And then as a follow-up, just want to get more color around some of the smaller opportunities, beauty, men, I think you've also talked about home and more basics, just where we are in that and how you see the opportunity? Thank you.

然後作為後續行動，只是想圍繞一些較小的機會、美容、男人獲得更多的色彩，我想你也談到了家庭和更多基礎知識，我們所處的位置以及你如何看待這個機會？謝謝。

Yeah, on the long-term EBITDA margin, call it, 14%, it's still our long-term target. Now, it's going to take a little bit more time than we initially anticipated, given all of the macro challenges that we've experienced over the last couple of years. But we do still think that's achievable over the long term. But more near to midterm, the goal is to get into that mid- to high-single digits consistently. And we think we can bridge to that -- I wouldn't say easily, but it's a fairly easy bridge to build, especially with some of the efficiencies we gained this past quarter.

是的，就長期 EBITDA 利潤率而言，14%，它仍然是我們的長期目標。現在，考慮到我們在過去幾年中經歷的所有宏觀挑戰，這將比我們最初預期的花費更多的時間。但我們仍然認為從長遠來看這是可以實現的。但接近中期時，我們的目標是持續達到中高個位數。我們認為我們可以架起橋樑——我不會說這很容易，但這是一座相當容易建造的橋樑，特別是考慮到我們在上個季度獲得的一些效率。

So number one is margin. We talked about that earlier on the call. A lot of opportunity there with owned brands over time. Fulfillment, selling, and distribution with return rate reduction initiatives and the efficiency gains that the team has achieved there. Marketing, not communicating any leverage on that point because we do want to keep investing. There's still a massive opportunity out there.

所以第一是保證金。我們早些時候在電話會議中談到了這一點。隨著時間的推移，自有品牌會帶來許多機會。履行、銷售和分銷方面採取了降低退貨率的舉措，並提高了團隊在這些方面取得的效率。行銷，沒有在這一點上傳達任何影響力，因為我們確實想繼續投資。那裡仍然存在著巨大的機會。

And then G&A, G&A is a significant leverage point, if we can maintain that double-digit sales growth. Right now, we're investing in the business in excess of kind of a normal G&A run rate. So really investing ahead of that growth. That will normalize over time. And then again, with sales in the double digit, again, over time, that provides a significant lever point.

然後，如果我們能夠保持兩位數的銷售成長，那麼 G&A，G&A 是一個重要的槓桿點。目前，我們對該業務的投資超過了正常的一般管理費用運作率。因此，真正要在成長之前進行投資。隨著時間的推移，這種情況將會正常化。然而，隨著時間的推移，隨著銷售額達到兩位數，這再次提供了一個重要的槓桿點。

And with regards to the developing categories, like work, active, home, men's, beauty and such continue progress super early innings. Growth rates in all of those segments is higher than our core growth rates. And the intention in the plan, the journey that we -- the steady compounding year after year, quarter after quarter, it really begin to add up. I think it's at the scale now or it's still smaller on the -- as a percentage of overall sales, but as things continue to accelerate, those will be even more stronger meaningful drivers of top end growth in the years to come. So very excited there.

至於發展中的類別，如工作、運動、家庭、男士、美容等，在早期階段繼續取得進展。所有這些細分市場的成長率都高於我們的核心成長率。計劃中的意圖，我們的旅程——年復一年、季復一個季度的穩定複利，它真的開始加起來。我認為它是現在的規模，或者在整體銷售額中所佔的比例仍然較小，但隨著事情繼續加速，這些將成為未來幾年高端成長的更強大的有意義的驅動力。那裡非常興奮。

A lot of learning, a lot of progress, and a lot of learnings and interplay between the each of the segments that drive accelerated growth in the less developed segments and such. So feeling really good about that. multi-multi-multiyear journey, but long term, well on our way.

大量的學習，大量的進步，以及每個細分市場之間的大量學習和相互作用，推動了欠發達細分市場的加速增長等。所以感覺真的很好。多年的旅程，但從長遠來看，我們正在順利進行。

Janet Kloppenburg, JJK Research Associates.

珍妮特‧克洛彭堡 (Janet Kloppenburg)，JJK 研究助理。

Hi, everybody. Congrats on a good quarter. Just two questions from me. Did you see any demographic trend change? Like maybe the younger aspirational customer, you know, started to resurface. And did you do anything in terms of pricing architecture to drive the new customer acquisition?

大家好。恭喜季度表現良好。我只想問兩個問題。您看到人口趨勢有什麼改變嗎？你知道，也許年輕的有抱負的顧客開始重新出現。您在定價架構方面做了什麼來推動新客戶的獲取嗎？

And then just lastly, on the inventory, I think the spread is wider than it was in the second quarter sales inventory. And I'm just wondering at REVOLVE, if there's some inventory balancing going on that's making -- that's pushing the mark down levels up and you need to work through that. And where should we expect to see -- When should we expect to see inventories be better aligned with sales growth? Thank you.

最後，在庫存方面，我認為價差比第二季銷售庫存的價差更大。我只是想知道 REVOLVE 是否正在進行一些庫存平衡——這會導致標記水平下降，你需要解決這個問題。我們應該在哪裡看到——我們什麼時候應該看到庫存與銷售成長更好地保持一致？謝謝。

Yeah. So I'll start by talking about the demographic change question. We didn't make any changes to pricing architecture to try to go after a different demographic. That said, we think we have a nice assortment of merchandise that appeals to both millennials and Gen Z, and of course, other demo demographics as well.

是的。所以我先談談人口變化問題。我們沒有對定價架構進行任何改變來嘗試迎合不同的人群。也就是說，我們認為我們擁有各種各樣的商品，既能吸引千禧世代和 Z 世代，當然也能吸引其他演示人群。

I do think some of the site merchandizing improvements that we've made over the past couple quarters in the most recent quarter, in particular, have helped our merchandise resonate better overall, including with Gen Z. So we're very happy about (technical difficulty) that we've made there.

我確實認為，我們在過去幾季中在最近一個季度所做的一些網站商品改進，特別是幫助我們的商品在整體上產生了更好的共鳴，包括與Z 世代的共鳴。 （技術方面）難度），我們在那裡做到了。

And then in terms of inventory levels and inventory mark downs, we would expect to see inventory growth or decrease in Q4 exiting in the year. And as Jesse mentioned, we expect to see margins grow in 2025. So certainly, we have a little bit more inventory than we would like at this point. But I think, overall, the problem is fairly moderate in nature and the impact should be muted over just a couple quarters here.

然後就庫存水準和庫存降價而言，我們預計今年第四季庫存將增加或減少。正如 Jesse 所提到的，我們預計 2025 年利潤率將會成長。當然，我們目前的庫存比我們想要的要多一些。但我認為，總體而言，這個問題本質上相當溫和，其影響在短短幾個季度內應該會減弱。

Yeah, I need to add to that the differential did get better. It was about 9 points in Q1, then it was up to 11 points in Q2, and then down to 8 points in Q3. So some progress made there.

是的，我需要補充一點，差速器確實變得更好了。Q1大概是9分，然後Q2上升到11分，然後Q3降到8分。所以那裡取得了一些進展。

Okay, good. I'm sorry about that mistake.

好的，很好。我對那個錯誤感到抱歉。

Oh, no, all good.

哦，不，一切都好。

That's all the time we have for questions today. I will turn the call back over 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。

Hey, guys. Thanks for joining us. It's been a solid quarter. A lot of great progress all across the board on efforts that have been taken many, many quarters. And we still have a lot of, lot of exciting things in the work, which we're excited to share next quarter and the year beyond. So see you guys soon. Thank you.

嘿，夥計們。感謝您加入我們。這是一個堅實的季度。經過許多季度的努力，各方面都取得了巨大進展。我們的工作中還有很多令人興奮的事情，我們很高興在下個季度和未來一年分享這些事情。所以很快再見到你們。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。