Solo Brands Inc (SBDS) 2023 Q3 法說會逐字稿

Ladies and gentlemen, hello, and welcome to the Solo Brands Inc. Third Quarter Fiscal 2023 Financial Results.

女士們、先生們，大家好，歡迎閱讀 Solo Brands Inc. 2023 財年第三季財務業績。

My name is Maxine, and I'll be coordinating the call today.(Operator Instructions) I will now hand over to Bruce Williams to begin. Bruce, Please go ahead when you are ready.

我的名字是 Maxine，今天我將協調通話。（操作員指示）我現在將交給 Bruce Williams 開始。布魯斯，準備好後請繼續。

Good morning, everyone, and thank you for joining the call to discuss Solo Brands third quarter results, which we released this morning, and it can be found on the Investor Relations section of our website at investors.solobrands.com. Today's call will be hosted by Chief Executive Officer, John Merris; and Chief Financial Officer, Somer Webb.

大家早安，感謝您參加討論 Solo Brands 第三季度業績的電話會議，我們今天早上發布了該業績，您可以在我們網站的投資者關係部分找到該業績：investors.solobrands.com。今天的電話會議將由執行長 John Merris 主持；兼財務長薩默·韋伯。

Before we get started, I want to remind everyone that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current management's expectations. These may include, without limitation, predictions, expectations, targets or estimates, including regarding our anticipated financial performance, business plans and objectives, future events and developments, and actual results could differ materially from those mentioned.

在開始之前，我想提醒大家，管理層在本次電話會議上的言論可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，這些陳述基於當前管理層的預期。這些可能包括但不限於預測、預期、目標或估計，包括我們預期的財務表現、業務計劃和目標、未來事件和發展，實際結果可能與上述結果有重大差異。

Those forward-looking statements also involve substantial risks and uncertainties, some of which may be outside of our control and that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties, among others, are discussed in our files with the SEC. We encourage you to review these filings for a discussion of these risks, including our soon to be filed quarterly report on Form 10-Q and will be available on the Investors portion of our website at investors.solobrands.com.

這些前瞻性陳述也涉及重大風險和不確定性，其中一些可能超出我們的控制範圍，並可能導致實際結果與此類陳述明示或暗示的結果有重大差異。我們向 SEC 提交的文件中討論了這些風險和不確定性等。我們鼓勵您查看這些文件，以討論這些風險，包括我們即將提交的 10-Q 表格季度報告，該報告將在我們網站的投資者部分提供，網址為 Investors.solobrands.com。

Now I'd like to turn the call over to John.

現在我想把電話轉給約翰。

Thank you, Bruce, and thank you for joining the call today to discuss Solo Brands and our third quarter results. I will begin with a review of our third quarter performance and then talk more about our vision and strategy. Somer will then review the financials in more detail and provide our outlook.

謝謝 Bruce，也感謝您今天參加電話會議，討論 Solo Brands 和我們的第三季業績。我將首先回顧我們第三季度的業績，然後更多地談論我們的願景和策略。然後，薩默將更詳細地審查財務狀況並提供我們的前景。

I am pleased with our third quarter results, which came in ahead of our expectations. We delivered sales of $110 million, an increase of 8% over last year and adjusted EBITDA margins have increased 250 basis points to roughly 14%. Our results were driven by strong sales through our wholesale channel as our brand momentum continues to grow.

我對我們第三季的業績感到滿意，超出了我們的預期。我們實現銷售額 1.1 億美元，比去年成長 8%，調整後 EBITDA 利潤率成長 250 個基點，達到約 14%。隨著我們的品牌勢頭持續成長，批發通路的強勁銷售推動了我們的業績。

While we know that consumer wallets are stretched, we are well positioned to navigate an uncertain consumer environment, given the resilience and strength of our financial model. Solo Brands generates healthy EBITDA margins, has low financial leverage, a balanced omnichannel sales approach and is capital-light leading to strong free cash flow.

雖然我們知道消費者的錢包已經捉襟見肘，但鑑於我們財務模式的彈性和實力，我們有能力應對不確定的消費者環境。 Solo Brands 的 EBITDA 利潤率良好，財務槓桿較低，採用平衡的全通路銷售方式，資本輕，因此自由現金流強勁。

We are proud to report on the momentum that Solo Brands is gaining with our wholesale partners. For the quarter, our Wholesale revenues increased 114% compared to last year due to strong sell-in with new and existing partners matched with strong sell-through's. Our sell-through's have been solid because of the unique value that our brands offer to wholesalers, fueled by our marketing efforts, which help us connect directly with many new customers that are experiencing our brands for the first time.

我們很自豪地報告 Solo Brands 與批發合作夥伴的合作勢頭。本季度，由於新舊合作夥伴的強勁銷售以及強勁的銷售，我們的批發收入與去年相比增長了 114%。我們的銷售一直很穩定，因為我們的品牌為批發商提供了獨特的價值，在我們的行銷努力的推動下，這幫助我們直接與許多首次體驗我們品牌的新客戶建立聯繫。

We attribute the success of our wholesale strategy to this. Our customers appreciate and value often, the same consumer who is shopping online today may find themselves in a jam tomorrow as they prepare for a birthday party or a wedding. We have heard feedback from customers who are thrilled to be able to drive to a store to pick up a Solo Stove right then.

我們將批發策略的成功歸功於此。我們的客戶經常欣賞和重視，今天在網上購物的同一個消費者可能會發現自己明天在準備生日派對或婚禮時陷入困境。我們聽到了顧客的回饋，他們很高興能夠立即開車去商店購買 Solo Stove。

Customers want optionality, and we are responding to their needs as part of our ongoing commitment to customer satisfaction. Allow me to remind you of our omnichannel strategy, which we rolled out at the beginning of the year. Our belief was that as we built our Wholesale business, we would inevitably cannibalize some of our online business in the near term.

客戶需要更多的選擇，而我們正在滿足他們的需求，作為我們對客戶滿意度的持續承諾的一部分。請容許我提醒您我們在今年年初推出的全通路策略。我們的信念是，當我們建立批發業務時，我們將不可避免地在短期內蠶食我們的一些線上業務。

However, we expected that we would be able to drive many of those customers back to our site for the purchase of accessories and other products, and we are seeing that play out successfully. So far this year, we have witnessed a 23% increase in the customer group of first-time customers shopping on our website who are buying a firepit accessory.

然而，我們預計我們能夠吸引許多客戶回到我們的網站購買配件和其他產品，我們看到這一點取得了成功。今年到目前為止，首次在我們網站上購買壁爐配件的客戶群增加了 23%。

We expect that the majority of these are customers buying Solo Stove firepits from retailers and then coming to our website to buy accessories showcasing our ability to build direct relationships with entirely new cohorts of customers. We are making connections with thousands and thousands of new customers who may be exposed to our brand for the first time and this is part of a strategy that will ultimately grow our brand and business over the long run.

我們預計其中大多數是從零售商購買 Solo Stove 火坑的客戶，然後訪問我們的網站購買配件，這展示了我們與全新客戶群建立直接關係的能力。我們正在與成千上萬可能第一次接觸我們品牌的新客戶建立聯繫，這是最終將長期發展我們品牌和業務的策略的一部分。

As an important reminder, from a profitability standpoint, we are channel agnostic because we see similar profitability in wholesale as we do in our online business. As an added benefit of our strategic wholesale partnerships, we are building our brand awareness at an accelerated rate, which we believe will lead to higher sales in both channels over time. We are excited to work with retail partners who can optimize the in-person experience, allowing customers to interact with our products in new ways. We are accelerating our brand awareness through compelling shop-in-shop and in-store displays that enable us to showcase more of our product lines in a solo brands way and our customers are feeling the love.

重要的是提醒一下，從盈利能力的角度來看，我們與管道無關，因為我們看到批發業務的盈利能力與在線業務相似。作為我們策略性批發合作關係的另一個好處，我們正在加速建立我們的品牌知名度，我們相信隨著時間的推移，這將導致兩個管道的銷售額更高。我們很高興與能夠優化親身體驗的零售合作夥伴合作，讓客戶以新的方式與我們的產品互動。我們透過引人注目的店中店和店內展示來提高我們的品牌知名度，使我們能夠以獨立品牌的方式展示更多的產品線，我們的客戶感受到了愛。

We have found great success in DICK'S Sporting Goods, Public Lands and Shields, where we have more robust displays and in-person experiences, and this is intentional and in keeping with a larger strategy.

我們在 DICK'S Sporting Goods、Public Lands 和 Shields 取得了巨大成功，在那裡我們擁有更強大的展示和親身體驗，這是有意為之的，也符合更大的策略。

It's part of our DNA to treat our customers just as well in physical stores as we do online. So we are seeing continuity in terms of the way that we connect with our customers. Nevertheless, we believe that we are very under-penetrated at retail and see significant runway to continue growing with our current retail partners through share of shelf and strategic marketing initiatives.

我們在實體店和網路上一樣對待顧客，這是我們 DNA 的一部分。因此，我們看到了與客戶聯繫方式的連續性。儘管如此，我們相信我們在零售領域的滲透率還很低，透過貨架份額和策略行銷舉措，我們看到了與我們當前的零售合作夥伴繼續增長的重要途徑。

Currently, our enhanced presentation is in only 200 doors, driving increased productivity in those doors. The reality is, is that we are in 7,500 doors in total across Solo Brands. But from a shop-in-shop perspective, we're only in a fraction of them. We believe there's still substantial opportunity to build shop-in-shop experiences in many more doors, and we will continue this rollout with our current and future retail partners.

目前，我們的增強演示僅適用於 200 扇門，從而提高了這些門的生產效率。現實情況是，Solo Brands 共有 7,500 家門市。但從店中店的角度來看，我們只佔其中的一小部分。我們相信，仍有大量機會在更多門市打造店中店體驗，我們將與目前和未來的零售合作夥伴繼續推出這項服務。

To this end, we are excited to begin offering our products with new retailers, including Target this quarter, and we are very happy to report that we have renewed our partnership with REI in a meaningful way. We couldn't be more thrilled to have the kind of growth we're having this early in our story.

為此，我們很高興本季開始向包括 Target 在內的新零售商提供我們的產品，並且我們很高興地報告，我們已經以有意義的方式與 REI 續簽了合作夥伴關係。我們對故事早期的發展感到無比興奮。

As a brand that still believes we're in our early days, the impact of this increased growth in retail is remarkable. First and foremost, it's underscoring the stunning synchronicity that's occurring between our on- and off-line channels. We are working within our wholesale channel to protect profitability even while our retail partners are seeing great gains. No matter where we need our customers, the focus is on fostering a deeper connection, which is leading customers back to our websites.

作為一個仍然相信自己還處於早期發展階段的品牌，零售業成長的影響是顯著的。首先也是最重要的，它強調了我們的線上和線下管道之間發生的驚人的同步性。儘管我們的零售合作夥伴取得了巨大的收益，但我們仍在批發通路內努力保護獲利能力。無論我們在哪裡需要客戶，重點都是培養更深的聯繫，從而引導客戶回到我們的網站。

Solo Brands obsession with the customer experience has been part of our DNA from the start and we are happy to report that our approach is continuing to blaze trails wherever we go. I dig into this channel shift a little more, we believe that our retail growth places a halo over our entire business, creating a flywheel effect. As I stated, we have noticed a significant increase in customers that are purchasing accessories on our website, who have not purchased a Fire Pit on solostove.com. Essentially, these would be customers that bought a fire pit out of retail and are coming back to our website to purchase accessories, hence the flywheel.

Solo Brands 對客戶體驗的執著從一開始就已成為我們 DNA 的一部分，我們很高興地報告，無論我們走到哪裡，我們的方法都在繼續開拓創新。我對這個通路轉變進行了深入研究，我們相信我們的零售成長為我們的整個業務帶來了光環，創造了飛輪效應。正如我所說，我們注意到在我們網站上購買配件但未在 alonestove.com 上購買 Fire Pit 的客戶數量顯著增加。本質上，這些客戶是從零售店購買火坑並返回我們的網站購買配件（即飛輪）的客戶。

The purchasing patterns of these customers result in the near-term pressure that we are seeing in our direct channel, however, we do believe that over time, this flywheel effect will extend the lifetime value of a retail initiated customer once they are in the Solo ecosystem.

這些客戶的購買模式導致了我們在直接管道中看到的短期壓力，但是，我們確實相信，隨著時間的推移，這種飛輪效應將延長零售發起客戶一旦進入 Solo 的終身價值生態系統。

What does this all mean for Solo brand? It means we're well on our path to reaching the omnichannel balance that we talked about earlier this year. We said that we were going to aim for more balance in our channel mix and our retail partners are leaning in to help turn our goals into reality.

這對 Solo 品牌意味著什麼？這意味著我們正在順利實現今年稍早談到的全通路平衡。我們表示，我們的目標是在通路組合中實現更加平衡，我們的零售合作夥伴正在努力幫助我們將目標變為現實。

And while there are near-term headwinds to year-over-year growth for our e-commerce channel in the long term, we continue to expect that the brand exposure our new retail partners bring to the business, will create stability and solidarity for all channels. I want to emphasize our view that Solo Brands expansion of wholesale relationships is not a diversion from our DTC expertise but part of an integrated channel strategy that allows us to build deeper connections with customers.

儘管從長遠來看，我們的電子商務管道的同比增長存在近期阻力，但我們仍然預計，我們的新零售合作夥伴為業務帶來的品牌曝光將為所有人創造穩定和團結管道。我想強調我們的觀點，即 Solo Brands 擴大批發關係並不是偏離我們的 DTC 專業知識，而是綜合通路策略的一部分，使我們能夠與客戶建立更深的聯繫。

Turning to product innovation. We are excited about our product launches during the quarter. We continue to be successful introducing Solo branded products where we believe that we have permission to play in the backyard category. Building on the momentum of our Pizza Oven Pi, the most successful new category that we have entered into after fire pits, we launched Pi Prime during the quarter.

轉向產品創新。我們對本季產品的推出感到興奮。我們繼續成功推出 Solo 品牌產品，我們相信我們有權在後院類別中發揮作用。憑藉 Pizza Oven Pi（繼火坑之後我們進入的最成功的新類別）的勢頭，我們在本季度推出了 Pi Prime。

In addition, we introduced Mesa Torches, which rolled out in September. Mesa Torch brings entertainment, ambiance and backyard comfort via our innovative torches that customers can stake in the ground to enjoy a live fire and long-lasting life source with either a standard or a citronella infect repellent fuel.

此外，我們也推出了 9 月推出的 Mesa Torches。 Mesa Torch 透過我們創新的火炬帶來娛樂、氛圍和後院舒適感，客戶可以使用標準或香茅感染驅避燃料將其固定在地面上，享受生火和持久的生命源。

While it is still very early, we have been pleased with the results of both of these launches. A year ago, September, we launched Mesa, our tabletop fire pit. We are continuing to see strong demand from Mesa from our retail partners and we believe that we have a long runway for growth with this product. Our focus on continuous innovation, combined with consistent feedback from our customers, enables us to offer new accessories and enhancements to our core products.

雖然現在還為時過早，但我們對這兩項發布的結果感到滿意。一年前的九月，我們推出了桌上火坑 Mesa。我們繼續看到零售合作夥伴對 Mesa 的強勁需求，我們相信這款產品的成長還有很長的路要走。我們對持續創新的關注，加上客戶的一致回饋，使我們能夠為我們的核心產品提供新的配件和增強功能。

We will continue to roll out innovation in the upcoming quarter. As part of our efforts to expand the Solo Brands into new capabilities and categories, we recently acquired 2 unique businesses: TerraFlame and IcyBreeze, both of these are great companies on their own, but we believe that they fit nicely within Solo Stove. The TerraFlame acquisition allows us to safely bring fire inside and S'mores indoors. This addition also brings a proprietary concrete manufacturing facility giving us a new material and capability to include in our product innovation.

我們將在下一季繼續推出創新。作為我們將Solo 品牌拓展到新功能和新類別的努力的一部分，我們最近收購了兩家獨特的企業：TerraFlame 和IcyBreeze，這兩家公司本身都是偉大的公司，但我們相信它們非常適合Solo Stove 。收購 TerraFlame 使我們能夠安全地將火帶入室內，並將 S'mores 帶到室內。此次增建也帶來了專有的混凝土製造設施，為我們提供了新的材料和能力，以納入我們的產品創新。

While still small, TerraFlame is seeing significant year-over-year growth since joining the Solo family. IcyBreeze is a portable air conditioner and a cooler, which can use at the camp ground, the ballpark, on your boat or just in your backyard. We expect to integrate IcyBreeze into Solo Stove in 2024, and we are excited to add the supply chain, marketing and distribution scale to this extraordinary product as we move into peak selling season next spring and summer.

儘管規模仍然很小，但 TerraFlame 自從加入 Solo 大家庭以來，已經實現了顯著的同比增長。 IcyBreeze 是一款便攜式空調和冷卻器，可在露營地、球場、船上或後院使用。我們預計在 2024 年將 IcyBreeze 整合到 Solo Stove 中，隨著我們進入明年春季和夏季的銷售旺季，我們很高興能為這款非凡的產品增加供應鏈、行銷和分銷規模。

While IcyBreeze is out of season in the winter months, we will introduce a new product innovation around the holidays, which will make IcyBreeze more giftable even out of season. Innovation is driving greater market penetration by enabling customers in a wide variety of climates to manage home comfort. In colder climates, our products create a whole new living space that customers didn't have before, fire pits and heaters on the deck.

雖然IcyBreeze在冬季是淡季，但我們將在假期前後推出新的產品創新，這將使IcyBreeze即使在淡季也更具送禮價值。創新使客戶能夠在各種氣候條件下管理家庭舒適度，從而推動更大的市場滲透。在寒冷的氣候下，我們的產品創造了客戶以前沒有的全新生活空間，甲板上有火坑和加熱器。

And in warmer climates, we have customers who love to make a nice toasty S'more, even when it's 100 degrees outside. They can do that now with TerraFlame in their kitchen just as IcyBreeze allows customers to extend their outdoor living space during warm periods of the year, and this kind of value is immeasurable and helpful and expanding market share.

在溫暖的氣候下，我們的顧客喜歡製作美味的烤 S'more，即使室外溫度為 100 度。他們現在可以在廚房中使用 TerraFlame 來做到這一點，就像 IcyBreeze 讓客戶在一年中溫暖的時期擴大他們的戶外生活空間一樣，這種價值是不可估量的，有助於擴大市場份額。

So both of these new innovations are opening up opportunities for rethinking the way customers connect with each other around the home. Solo is committed to making the outdoor living room experience as comfortable as the indoor living experience. and we will continue to look for strategic tuck-in acquisitions that will allow us to extend the Solo Stove brand across backyard and outdoor categories with the ultimate goal of helping customers create good moments and lastly memories.

因此，這兩項創新都為重新思考客戶在家庭中相互聯繫的方式提供了機會。 Solo 致力於讓戶外客廳體驗與室內生活體驗一樣舒適。我們將繼續尋求策略性收購，這將使我們能夠將 Solo Stove 品牌擴展到後院和戶外類別，最終目標是幫助客戶創造美好的時刻和最後的回憶。

Additionally, we continue to expand our customization offerings. Ahead of the holiday season, we are excited to share. We have signed a new NFL licensing agreement. Customers can now support their favorite team, all while gathering with friends and watching the game or tailgating around our Solo Stove. In closing, we remain committed to a strategy focused on profitability and free cash flow generation.

此外，我們繼續擴展我們的客製化產品。在假期來臨之前，我們很高興與大家分享。我們簽署了新的 NFL 許可協議。客戶現在可以支援他們最喜歡的球隊，同時與朋友聚會並觀看比賽或在我們的 Solo Stove 周圍進行尾隨。最後，我們仍然致力於專注於獲利能力和自由現金流產生的策略。

This strategy allows us to invest in opportunities where we can continue to deliver growth and brand expansion and most importantly, build stronger and more direct connections with customers. At the end of the day, we believe that what's good for our customer is good for our shareholders. The current environment remains uncertain, dynamic and hard to predict. We are focused on what we can control, which is to deliver the best experiences for great products. We provide a wide range of price points and an offering that meets the needs of our ever-growing customer base.

這項策略使我們能夠投資於能夠繼續實現成長和品牌擴張的機會，最重要的是，與客戶建立更強大、更直接的聯繫。歸根結底，我們相信對客戶有利的事情對我們的股東也有利。當前的環境仍然不確定、動態且難以預測。我們專注於我們可以控制的事情，即為優質產品提供最佳體驗。我們提供廣泛的價位和產品，以滿足不斷增長的客戶群的需求。

As we look into the all-important fourth quarter, we have a lot of exciting things planned to reach new customers through unique and compelling marketing programs which we believe will stand out from the crowd and drive enthusiasm for our brand.

當我們展望最重要的第四季時，我們計劃採取許多令人興奮的事情，透過獨特且引人注目的行銷計劃吸引新客戶，我們相信這些計劃將脫穎而出，並激發人們對我們品牌的熱情。

Before I turn the call over to Somer, I'd like to take a moment to thank her for all she has done for Solo Brands. She's been a great partner to me and leader of our finance team. We will miss her and wish her all the best. I will now turn the call over to Somer to discuss the financials. Somer?

在將電話轉接給 Somer 之前，我想花點時間感謝她為 Solo Brands 所做的一切。她是我很好的合作夥伴，也是我們財務團隊的領導者。我們會想念她並祝她一切順利。我現在將把電話轉給薩默，討論財務問題。薩默？

Thanks, John, and good morning, everyone. Today, I will walk you through our third quarter results and then provide our outlook for the remainder of 2023. We are pleased with our results for the third quarter, delivering year-over-year growth on both the top and bottom line.

謝謝約翰，大家早安。今天，我將向您介紹我們的第三季業績，然後提供我們對 2023 年剩餘時間的展望。我們對第三季的業績感到滿意，實現了營收和利潤的同比增長。

Our sales growth was driven by strong sales in our Wholesale channel. Our focus on generating profitable growth enabled us to deliver $15 million in EBITDA, a 33% increase over the prior year. Net sales increased 8% to $110.3 million compared to $102.2 million in the prior year period. Sales were driven by strong demand in the wholesale channel, which were partially offset by softer trends in our direct-to-consumer business.

我們的銷售成長是由批發通路的強勁銷售所推動的。我們對實現獲利成長的關注使我們實現了 1500 萬美元的 EBITDA，比上一年增長了 33%。淨銷售額較去年同期的 1.022 億美元成長 8%，達到 1.103 億美元。批發通路的強勁需求推動了銷售，但我們的直接面向消費者業務的疲軟趨勢部分抵消了這一需求。

Wholesale net sales increased 114.3% to $34 million for the third quarter compared to $15.9 million in the prior year, driven by continued expansion of our wholesale network as well as increased shelf space within our existing partners.

第三季批發淨銷售額成長 114.3%，達到 3,400 萬美元，而去年同期為 1,590 萬美元，這得益於我們批發網路的持續擴張以及現有合作夥伴貨架空間的增加。

We did experience some benefit in the quarter due to the timing of shipments as we shipped some wholesale orders early in preparation for the holidays. In addition, better partnerships with our retailers has led to a more normal seasonal sell-in cycle, which also impacted the timing of shipments compared to our more replenishment at-once orders that the company experienced last year.

由於發貨時間的原因，我們在本季度確實獲得了一些好處，因為我們提前發貨了一些批發訂單，為假期做準備。此外，與零售商更好的合作關係導致了更正常的季節性銷售週期，與公司去年經歷的更多一次性補貨訂單相比，這也影響了發貨時間。

Our direct-to-consumer net sales decreased 11.6% to $76.3 million for the third quarter compared to $86.3 million in the same period in the prior year, driven by product mix combined with reduced digital marketing spend.

由於產品組合和數位行銷支出減少，我們第三季直接面向消費者的淨銷售額下降了 11.6%，至 7,630 萬美元，而去年同期為 8,630 萬美元。

Moving to gross margin. Gross margin decreased to 61.9% compared to 63.3% in the third quarter of 2022. Our margin rate was impacted by higher wholesale channel mix compared to a year ago, slightly offset by lower inbound freight expense, although our wholesale channel carries a lower gross margin than e-commerce both channels generate similar contribution margins.

轉向毛利率。毛利率下降至61.9%，而2022 年第三季為63.3%。與一年前相比，我們的毛利率受到批發通路組合增加的影響，但入境運費下降略有抵消，儘管我們的批發通路毛利率較低與電子商務相比，這兩個管道產生的邊際貢獻相似。

Selling, general and administrative expenses for the third quarter increased to $61.3 million compared to $59.5 million. However, as a percentage of net sales, SG&A expenses decreased to 55.6% compared to 58.2% in the same period last year.

第三季的銷售、一般和管理費用從 5,950 萬美元增加到 6,130 萬美元。然而，SG&A 費用佔淨銷售額的百分比從去年同期的 58.2% 下降至 55.6%。

Our third quarter net income was $3.1 million and net income per diluted share was $0.07. Third quarter adjusted net income was $15.2 million, and our adjusted EPS was $0.28 per diluted share. Adjusted EBITDA increased to 33% to $15 million, and adjusted EBITDA margin increased 250 basis points to 13.6%.

我們第三季的淨利潤為 310 萬美元，攤薄後每股淨利潤為 0.07 美元。第三季調整後淨利為 1,520 萬美元，調整後每股攤薄每股收益為 0.28 美元。調整後 EBITDA 成長 33%，達到 1,500 萬美元，調整後 EBITDA 利潤率成長 250 個基點，達到 13.6%。

Now turning to the balance sheet. At the end of the period, we had $16.6 million in cash and cash equivalents. As of September 30, we had $75 million in outstanding borrowings under the Revolving Credit Facility and $92.5 million under the Term Loan Agreement. The borrowing capacity on the Revolving Credit Facility was $350 million as of September 30, leaving $275 million of availability.

現在轉向資產負債表。期末，我們擁有 1,660 萬美元的現金和現金等價物。截至 9 月 30 日，我們在循環信貸安排下的未償還借款為 7,500 萬美元，在定期貸款協議下的未償還借款為 9,250 萬美元。截至 9 月 30 日，循環信貸機制的借款能力為 3.5 億美元，剩餘可用資金為 2.75 億美元。

We have a strong liquidity position, and we believe we are able to take advantage of strategic opportunities with a net leverage of roughly 1.6x. Inventory at the end of the third quarter was $114.1 million, roughly in line with the year ago. We are comfortable with our inventory levels as we move into the holiday season.

我們擁有強大的流動性頭寸，我們相信我們能夠以約 1.6 倍的淨槓桿率利用戰略機會。第三季末庫存為 1.141 億美元，與去年同期大致持平。隨著假期的到來，我們對庫存水準感到滿意。

Turning to our outlook. I am pleased with how we've navigated a more difficult environment as demonstrated in our Q3 results. As we move into the fourth quarter, we recognize that the macro environment and consumer spending remains unknown. Nevertheless, we are excited about the pipeline of new products and the unique and compelling marketing plan we plan to rollout in the next few weeks.

轉向我們的展望。我對我們如何應對更困難的環境感到滿意，正如我們第三季的業績所證明的那樣。當我們進入第四季度時，我們認識到宏觀環境和消費者支出仍然未知。儘管如此，我們對新產品的開發以及我們計劃在未來幾週內推出的獨特且引人注目的行銷計劃感到興奮。

With a significant part of our business in front of us, we are optimistic that we can continue to generate revenue and earnings growth. For fiscal 2023, we continue to expect revenue to be in the range of $520 million to $540 million with the most likely outcome at the midpoint of that range of $530 million, which reflects the pressure from the macro environment as well as the timing of shipments that pulled forward some revenue from Q4 into Q3. We also continue to expect to deliver adjusted EBITDA margin of between 17% and 18% for the full year.

由於我們的大部分業務擺在我們面前，我們對能夠繼續創造收入和獲利成長感到樂觀。對於 2023 財年，我們繼續預計收入將在 5.2 億至 5.4 億美元之間，最有可能的結果為 5.3 億美元，這反映了宏觀環境以及發貨時間的壓力這將部分收入從第四季度提前到了第三季。我們也繼續預計全年調整後 EBITDA 利潤率將在 17% 至 18% 之間。

Before I turn the call over to the operator, I would like to thank the amazing team here at Solo Brands for the time together over the last 1.5 years. I have enjoyed being a part of the evolution and growth of this business, and I'm excited to see what goes in the future. I will now turn the call over to the operator to begin Q&A.

在將電話轉給接線員之前，我要感謝 Solo Brands 出色的團隊在過去 1.5 年裡一起度過的時光。我很高興成為這個行業發展和成長的一部分，我很高興看到未來會發生什麼。我現在將把電話轉給接線員開始問答。

(Operator Instructions) Our first question from Peter Keith from Piper Sandler.

（操作員說明）我們的第一個問題來自 Piper Sandler 的 Peter Keith。

Well, first of all congratulate on the wholesale revenue, which looks great. But I wanted to just pivot, of course, to where the revenue is negative on the DTC side. And seems like it's kind of trending in line with how you were talking about it last quarter, kind of in that down low double-digit range, and you pulled back on some of the marketing. But what's really the outlook? And when could we think about DTC starting to pivot to seeing some year-on-year sales growth?

好吧，首先祝賀批發收入，看起來很棒。但當然，我只想轉向 DTC 方面收入為負的地方。似乎這種趨勢與您上個季度談論的趨勢一致，在較低的兩位數範圍內，並且您撤回了一些行銷活動。但真正的前景如何？我們什麼時候可以考慮 DTC 開始轉向實現銷售額年增？

That's something that we're very focused on. We talked about at the beginning of this year, as we leaned into wholesale, we expected pressure on direct-to-consumer. That has played out very much as we anticipated. And what we talked about, which I'll reiterate is, I think as we roll into Q2 next year, and we get through -- really to our next high season after we've anniversaried this lean into wholesale strategy. That's when we're expecting for the tailwinds of the brand exposure that wholesale bringing to us to play out in direct-to-consumer.

這是我們非常關注的事情。我們在今年年初談到，隨著我們轉向批發，我們預計直接面向消費者的壓力。事情的發展非常符合我們的預期。我們所討論的，我要重申的是，我認為，當我們進入明年第二季度時，我們會度過——真正進入我們的下一個旺季，在我們對批發策略的傾斜週年紀念日之後。那時我們預期批發給我們帶來的品牌曝光將在直接面向消費者的過程中發揮作用。

So we're still seeing an increase year-on-year, year-to-date on order counts online. So Stove is seeing an increase in order counts. We are driving customers back to our site. It's just a matter of getting those customers into that life cycle of the rest of the product categories that Solo Stove has to offer. So we do see that playing out. I think it's the middle of next year and then through the back half of next year that we start seeing that on the DTC front.

因此，我們仍然看到年初至今線上訂單數量同比增長。因此，Stove 的訂單數量有所增加。我們正在吸引客戶回到我們的網站。這只是讓這些客戶進入 Solo Stove 提供的其他產品類別的生命週期的問題。所以我們確實看到了這種情況的發生。我認為從明年年中開始，到明年下半年，我們就會開始在 DTC 方面看到這一點。

Okay. That sounds good. And then John, you've made some public comments around the EBITDA margin approaching 20% by the end of next year. I mean I guess as you stand here today, does that still seem like a reasonable goal? And maybe you or Somer could just help us understand the drivers of the EBITDA margin expansion?

好的。聽起來很好。然後約翰，您就 EBITDA 利潤率到明年年底接近 20% 發表了一些公開評論。我的意思是，我想當你今天站在這裡時，這看起來仍然是一個合理的目標嗎？也許您或 Somer 可以幫助我們了解 EBITDA 利潤率擴張的驅動因素？

Yes, I'll kick in and then -- kick off and then have Somer later on if I miss anything. I think if we were to just continue to operate the business as is, independent of leaning into additional investments, we do see a line of sight to 20% EBITDA margin. I will say that lately, we started seeing opportunities to lean in and make additional investments.

是的，我會先開始，然後——開始，如果我錯過了什麼，稍後再請薩默。我認為，如果我們繼續按原樣經營業務，不依賴額外投資，我們確實可以看到 EBITDA 利潤率達到 20%。我要說的是，最近我們開始看到了傾斜和進行額外投資的機會。

As we think about those, and we're thinking about, obviously, we're in [heavy '24] planning right now. We think that there may be opportunities in places we want to invest, which may impact getting to 20% next year, but it's all going to depend on whether or not we decide to lean into those investments and how soon.

當我們思考這些問題時，顯然，我們現在正在 [24 年] 的計劃中。我們認為，我們想要投資的地方可能存在機會，這可能會影響明年達到 20%，但這一切都取決於我們是否決定進行這些投資以及多久進行。

The next question comes from Chasen Bender from Citi.

下一個問題來自花旗集團的 Chasen Bender。

John, I was hoping to start on the comment about Target. If you could just expand on the -- the expansion there, specifically, is that just TerraFlame -- or is that other brands as well? And then maybe just kind of comment on how many stores you're going in? And is there any load-in expected in the fourth Q?

約翰，我希望從有關塔吉特的評論開始。如果你可以擴展 - 具體來說，那裡的擴展是 TerraFlame - 還是還有其他品牌？然後也許只是評論一下您要去多少家商店？第四個問題預計會有載入嗎？

Great, Chasen. So the target expansion -- so we've announced prior that TerraFlame already had a relationship with Target. That does continue, what we're leaning into here and announcing is actually Solo Stove now launching relationship with Target. So we now will have Solo Stove product as of this quarter, going into roughly 2,000 Target stores for Black Friday, through Cyber Monday type promotion. We're super excited about that.

太棒了，查森。 Target 擴張－我們之前就宣布 TerraFlame 已經與 Target 建立了合作關係。這種情況確實還在繼續，我們在這裡關注並宣布的實際上是 Solo Stove 現在與 Target 建立了合作關係。因此，從本季度開始，我們將透過網路星期一類型的促銷活動，在黑色星期五期間向大約 2,000 家 Target 商店推出 Solo Stove 產品。我們對此感到非常興奮。

There is -- again, it's in our guidance and already kind of baked in, but something we've been planning on and excited to roll out this quarter. So you will see that product on the shelves the week of Thanksgiving, we're really excited about that.

再說一遍，它已經在我們的指導中，並且已經融入其中，但我們一直在計劃並很高興在本季度推出。所以你會在感恩節那週看到該產品出現在貨架上，我們對此感到非常興奮。

Got it. And then just more high level. Obviously, you alluded to the fact that the customers continue to come back to your own website after having purchased product retail. But I guess more kind of fundamentally as you continue to expand at retail, both new retailers and door space, expect that you'll begin to sell a broader range of the product portfolio, including accessories, at retailer? Or will there always be some product you could hold back to be able to move customers from retail back to your own DTC channel and kind of retain that direct-to-customer relationship?

知道了。然後就是更高的水平。顯然，您提到了這樣一個事實：客戶在購買零售產品後繼續回到您自己的網站。但我想更根本的是，隨著您繼續擴大零售業務，無論是新零售商還是門面空間，您是否期望您將開始在零售商處銷售更廣泛的產品組合，包括配件？或者是否總是會有一些產品是您可以保留的，以便能夠將客戶從零售轉移回您自己的 DTC 管道並保留這種直接面向客戶的關係？

Yes. I think that that's right. The way you just stated that, I think it's the right way to think about it. In part, it's strategic on our part, but truthfully, there's limited shelf space in physical stores. At the end of the day, retailers are looking to carry products that have highest sell-through that are going to help them move volume as well through their stores.

是的。我認為這是對的。按照你剛才的說法，我認為這是正確的思考方式。在某種程度上，這對我們來說是策略性的，但事實上，實體店的貨架空間有限。歸根結底，零售商希望推出銷量最高的產品，這將有助於他們在商店中增加銷售量。

So, the reality is that we have found a strategy that's working really well for retailers. It's getting popular SKUs on their shelves that are moving. And then it's leaving some space for customers to come back to our site and to continue to participate with us. So every retailer is a little bit different. The strategy doesn't look exactly the same across every retailer, and they all carry different lines.

所以，現實是我們已經找到了對零售商來說非常有效的策略。貨架上流行的 SKU 正在移動。然後，它為客戶返回我們的網站並繼續參與我們的活動留下了一些空間。所以每個零售商都有點不同。每個零售商的策略看起來並不完全相同，而且它們都有不同的產品線。

But on an overarching basis, what you said is accurate that we believe that there will always be rumor and may be careful with the word always. But generally, we're believing that there will be room for some products to be available only on solostove.com or in large part on solostove.com. And that's the retail partners are carrying -- your kind of baseline products that are driving the majority of customers into brand for the first time.

但從總體上看，你說的是準確的，我們相信謠言總會有，並且可能要小心「總是」這個詞。但總的來說，我們相信某些產品將有空間僅在solostove.com 上或大部分在solostove.com 上提供。這就是零售合作夥伴所攜帶的——這種基準產品正在推動大多數客戶第一次進入品牌。

The next question comes from Phillip Blee from William Blair.

下一個問題來自威廉·布萊爾的菲利普·布萊爾。

This is Sabrina on for Phillip, could you provide further color on the upcoming marketing initiatives in the fourth quarter and the puts and takes there? Any efficiency on the lower DTC mix?

我是菲利普的薩布麗娜（Sabrina），您能否進一步介紹第四季度即將推出的營銷計劃以及那裡的情況？較低的 DTC 組合是否有效率？

Yes, for sure. And just as a reminder, Q4 tends to be the highest DTC mix. So we'll see how it plays out. Obviously, a lot of the quarter is still in front of us and the most important part of the quarter, generally Q4 is where we see the highest direct-to-consumer mix in that channel mix between wholesale and direct-to-consumer.

是肯定的。提醒一下，第四季往往是 DTC 最高的組合。所以我們會看看結果如何。顯然，本季的大部分時間仍在我們面前，並且是本季最重要的部分，一般來說，第四季度是我們在批發和直接面向消費者的管道組合中看到最高的直接面向消費者組合的階段。

In terms of the marketing initiatives, you may have seen, we actually did a press release. So we have 3 particularly significant marketing campaigns, 2 of which we have not released color on yet. One of them is coming up, which is the Macy's Day Parade and overall Macy's Day promotion that we're running. So we're super excited about that, coming in right ahead of our biggest selling day of the year, Black Friday. But here in the next week, you're going to hear and see something significant from us on the marketing front that we're excited about.

在行銷舉措方面，你可能已經看到，我們實際上做了一個新聞稿。因此，我們有 3 個特別重要的行銷活動，其中 2 個我們尚未發布顏色。其中之一即將到來，那就是梅西百貨遊行和我們正在進行的梅西百貨整體促銷活動。因此，我們對此感到非常興奮，就在我們一年中最大的銷售日「黑色星期五」到來之前。但在下週，您將聽到並看到我們在行銷方面的一些重要的事情，我們對此感到興奮。

Again, we haven't launched that yet. And then the following couple of weeks after that, again, another marketing campaign that we're pretty excited about. So we've been saying all year, the back half of the year, particularly Q4 was where you were going to see us taking some of the EBITDA preservation that we had. The discipline that we had exhibited throughout the beginning of the year, the first 3 quarters, and we were going to lean into investments in Q4 and that is playing out.

再說一次，我們還沒有啟動它。接下來的幾週，我們再次對另一場行銷活動感到非常興奮。因此，我們全年、下半年，尤其是第四季度，您將看到我們保留了部分 EBITDA。我們在今年年初、前三個季度所表現出的紀律，我們將在第四季度進行投資，而這種情況正在發揮作用。

We've actually gotten our hands on even some the marketing initiatives that we were not initially anticipating, which is allowing us to lean in maybe even a little bit more than we were. So we're very excited about the quarter. We've been in this position before and you guys have heard this that have been following us for the last several years.

事實上，我們甚至已經著手實施了一些我們最初沒有預料到的行銷舉措，這讓我們能夠比以前更投入一些。所以我們對這個季度感到非常興奮。我們以前就處於這個位置，你們也聽說過，並且在過去幾年裡一直關注我們。

And this is not an uncommon thing. At the beginning of November, we wish that we can -- we could give pure line of sight to the quarter based on what we've seen, but so much of the quarter is still out in front of us. And those last 5 weeks of the year are so critical for this quarter for us.

這並不是什麼罕見的事。在 11 月初，我們希望我們能夠——我們可以根據我們所看到的情況對本季度進行純粹的觀察，但本季度的大部分內容仍然在我們面前。一年中的最後 5 週對於本季的我們來說非常重要。

That's helpful. And then following up to that, could you provide some color on what your team has been doing to ignite more crossover demand between the portfolio brands?

這很有幫助。接下來，您能否提供一些關於您的團隊為激發投資組合品牌之間更多交叉需求而所做的工作的資訊？

Yes. We announced last quarter that we were going to be doing inserts in every package across the different brands cross marketing. We have seen slight lift across the brands, not as significant as we had hoped, but we're continuing to introduce the brands to the different cohorts of customers within the individual brands. So that's an ongoing initiative. We'll continue to execute on. Again, it's having slight positive impact, but nothing meaningful enough to really report on.

是的。上季我們宣布，我們將在不同品牌的每個包裝中進行插頁交叉行銷。我們看到各個品牌略有提升，但沒有我們希望的那麼顯著，但我們將繼續向各個品牌內的不同客戶群介紹這些品牌。所以這是一項持續的舉措。我們將繼續執行下去。同樣，它產生了輕微的積極影響，但沒有任何意義足以真正報告。

Our next question comes from Ryan Sigdahl from Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Ryan Sigdahl。

Congrats on all the positive business updates. I want to start with Target. So is this a trial? Or is this an ongoing relationship where you're going to continue to have permanent shelf space beyond the holiday selling season, I guess, dependent on performance, obviously. But is this a trial or permanent?

祝賀所有積極的業務更新。我想從塔吉特開始。那麼這是審判嗎？或者這是一種持續的關係，我想，在假期銷售季節之後，您將繼續擁有永久的貨架空間，這顯然取決於業績。但這是一次試驗還是永久的？

Yes, it's a bit of a hybrid. You kind of nailed it, right? I mean they are anxious to lean into the relationship. They're excited for what we can do with them going into next year. Obviously, all eyes right now are on this first campaign. And the success of this Q4 campaign that we're running with in is going to be a critical driver to how we think about and look at the 2024 relationship.

是的，它有點混合。你已經成功了，對吧？我的意思是他們渴望建立這種關係。他們對我們明年可以為他們做的事情感到興奮。顯然，現在所有的目光都集中在這第一個活動上。我們正在進行的第四季度活動的成功將成為我們如何思考和看待 2024 年關係的關鍵驅動力。

So it's not being called a test or a trial, but any new relationship is always in test or trial from our perspective. So we're focused on execution right now and excited to see that play out.

所以這不被稱為考驗或考驗，但從我們的角度來看，任何新的關係總是處於考驗或考驗中。因此，我們現在專注於執行，並很高興看到這一結果。

And then are you able to share which Solo Stove product you'll be selling or which products you'll be selling? And then 2,000 stores appears to be all their U.S. stores. Is that correct?

然後您能否分享您將銷售哪種 Solo Stove 產品或您將銷售哪些產品？然後 2,000 家商店似乎都是他們在美國的商店。那是對的嗎？

I don't know if I can say all of their stores. That was just the number that I heard. So I'll just stick with the 2,000 stores. That's what I'm familiar with. I'm pretty sure it's domestic only, but I'm not 100% sure on that. The product is -- I won't speak to -- it is a Target exclusive. So it's something we're excited about. It is the Mesa product, but it's something unique for Target, that's only going to be found in the Target stores. So you'll have to go check it out on Black Friday to see what it looks like.

我不知道我是否可以說他們所有的商店。這只是我聽到的數字。所以我會堅持選擇 2,000 家商店。這就是我所熟悉的。我很確定這只是國內的，但我不能100%確定。該產品——我不會談論——它是塔吉特的獨家產品。所以這是我們感到興奮的事情。它是 Mesa 產品，但它是 Target 獨有的產品，只能在 Target 商店中找到。所以你必須在黑色星期五去看看它是什麼樣子。

Good. Then one question for Somer. Just can you update us on the free cash flow expectations, puts, takes in the quarter, how do you think about the year? And then do you still expect to pay off the revolver debt by year-end?

好的。然後問薩默一個問題。您能否向我們介紹本季自由現金流預期、看跌期權和支出的最新情況？您對這一年有何看法？那你還希望在年底前還清左輪手槍債務嗎？

Yes. Thanks for the question. So as we move into the fourth quarter, the fourth quarter is obviously where we generate a lot of cash. It's our biggest quarter. So we typically going in, we are going to lean into marketing spend. So I'd tell you from what we've guided kind of earlier over EBITDA, it's probably going to be slightly less than EBITDA that would come in from a free cash flow perspective. But still a very healthy cash flow generation.

是的。謝謝你的提問。因此，當我們進入第四季時，第四季顯然是我們產生大量現金的地方。這是我們最大的季度。因此，我們通常會投入行銷支出。因此，我想告訴您，根據我們先前對 EBITDA 的指導，它可能會略低於從自由現金流角度來看的 EBITDA。但仍然是一個非常健康的現金流產生。

And our expectation is to pay down the revolver or the majority of the revolver by the end of the year. Again, we're seeing the opportunity to lean into marketing spend, and we're going to take advantage of that. But we also -- we expect to pay down the majority of the revolver by the end of the year, if not early in the first year -- or first of 2024.

我們的期望是在年底前還清左輪手槍或大部分左輪手槍的款項。我們再次看到了傾斜行銷支出的機會，我們將利用這個機會。但我們也 - 我們預計在今年年底前（如果不是第一年年初）或 2024 年年初還清大部分左輪手槍的款項。

(Operator Instructions) Our next question comes from Brian McNamara from Canaccord Genuity.

（操作員說明）我們的下一個問題來自 Canaccord Genuity 的 Brian McNamara。

Somer, we enjoyed working with you, best of luck in your new endeavors. First off, could you provide or give us an idea how much in wholesale sales were pulled forward to Q3 -- to Q3 from Q4, whether qualitatively or quantitatively, if you can?

薩默，我們很高興與您合作，並祝您新的事業好運。首先，如果可以的話，您能否向我們提供或告訴我們批發銷售從第四季度到第三季度的批發銷售額有多少，無論是定性還是定量？

Sure. We believe roughly $6 million was pulled forward. And on our last call, I mentioned that I thought the timing between Q3 -- tail end of Q3, early Q4, which going to be dependent on when some of the wholesalers are going to want to receive their holiday product. As you can imagine, with the sales starting earlier, we ended up shipping out more products than we expected at the end of Q3 and it was roughly $6 million.

當然。我們相信已提前撥出約 600 萬美元。在我們上次的電話會議上，我提到我認為第三季末、第四季初之間的時間安排將取決於一些批發商何時想要收到他們的假日產品。正如您可以想像的那樣，隨著銷售開始得更早，我們在第三季末發貨的產品數量超出了我們的預期，大約為 600 萬美元。

Got it. And then is that -- is the strength driven by more replenishment or more kind of starting out relationships for a better term in terms of your recent wholesale strength?

知道了。然後，就你們最近的批發實力而言，這種實力是由更多的補貨還是更多的建立關係來獲得更好的期限所驅動的？

Sorry, could you say that again, Brian? I missed that.

抱歉，布萊恩，你能再說一次嗎？我錯過了。

Yes. So your wholesale -- your recent wholesale strength, is that driven more from replenishment or more from potentially starting new relationships are gaining new shelf space with your current partners?

是的。那麼，您的批發——您最近的批發實力，是更多來自補貨，還是更多地來自潛在建立新的關係，正在與您當前的合作夥伴獲得新的貨架空間？

It's a pretty healthy combination. I mean obviously, this Target kickoff is a meaningful one, but if I had to lean one towards another, I'd say that it's more shelf space, it's bigger relationships with existing partners. We do have, obviously, the Target relationship kicking off. But as we look at the rest of our wholesale partners, it's definitely been them leaning in and either giving us more prominent real estate in the store and more robust displays or just giving us increased shelf space or carrying additional SKUs.

這是一個非常健康的組合。我的意思是，顯然，Target 的這次啟動是有意義的，但如果我必須傾向於另一個，我會說它有更多的貨架空間，它與現有合作夥伴建立了更緊密的關係。顯然，我們與 Target 的關係確實已經開始。但當我們看看其他批發合作夥伴時，他們肯定會向我們傾斜，要么為我們提供更顯眼的店內空間和更強大的展示，要么只是為我們提供更多的貨架空間或攜帶更多的 SKU。

And then just one quick last one. Can you provide a bit more color specifically on your digital marketing strategy for Q4? You say what appears to be a good bit of dry powder year-to-date. Will you lean into digital marketing more in Q4? Or will it continue to be based on the perceived efficacy, less spend even if you kind of potentially sacrifice sales?

然後只是最後一件事。能否具體介紹一下第四季的數位行銷策略？你說的今年迄今似乎是一筆不錯的乾粉。您會在第四季度更傾向於數位行銷嗎？或者它會繼續基於感知的效力、更少的支出，即使你可能會犧牲銷售？

Yes. Listen, it's always been driven to an extent by the efficacy of those spends, right? If it's not pulling through, we're not just going to spend to spend. We don't approach digital marketing that way at all. So we're going to continue to be disciplined.

是的。聽著，它總是在一定程度上受到這些支出的功效的驅動，對吧？如果它不能渡過難關，我們就不會只是花錢去花錢。我們根本不會以這種方式進行數位行銷。因此，我們將繼續遵守紀律。

However, we have preserved EBITDA throughout the year for this quarter. It's a tough consumer environment out there. Today, year-to-date, we're roughly 25% down in digital marketing spend on a year-to-year basis. And this is the quarter where we want to make up a lot of that ground. This is the time where consumers are especially at the spend. And we obviously have a lot of fun initiatives and new products that we're launching in conjunction with the quarter. So we're going to lean in. We're going to continue to watch marketing efficiency.

然而，本季我們全年都保留了 EBITDA。那裡的消費環境很艱難。如今，年初至今，我們的數位行銷支出較去年同期下降了約 25%。我們希望在這個季度彌補很多不足。這是消費者特別花錢的時候。顯然，我們在本季推出了許多有趣的舉措和新產品。因此，我們將繼續專注於行銷效率。

We're not going to spend just the spend, but we are going to lean in and take advantage of this opportunity. We've been prepared for it all year. So that -- I think you're thinking about it the right way, but we're going to lean in.

我們不會只花這筆錢，但我們會努力並利用這個機會。我們為此做好了一整年的準備。所以——我認為你的思考方式是正確的，但我們會繼續努力。

Great, best of luck guys.

太棒了，祝大家好運。

Thanks.

謝謝。

Thank you. That does conclude our Q&A session for today. So I'll hand back over to John for any closing remarks.

謝謝。我們今天的問答環節到此結束。因此，我將把結束語交給約翰。

Yes. I really appreciate everybody jumping on today. Thanks for the thoughtful questions. We're looking forward to going out and executing this quarter, and obviously, we'll be back in touch when the quarter ends and excited to report on the results of these marketing initiatives and to lean into digital marketing spend. So have a great rest of the quarter, guys, and we'll talk to you soon.

是的。我真的很感謝今天大家的參與。感謝您提出的深思熟慮的問題。我們期待著本季度的出去和執行，顯然，我們將在本季度結束時重新聯繫，並興奮地報告這些行銷計劃的結果並傾向於數位行銷支出。所以，夥計們，祝本季休息愉快，我們很快就會和你們談談。

Thank you. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。