Under Armour Inc (UA) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Under Armour Q3 '24 Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Lance Allega, SVP Investor Relations, Treasury and Corporate Development. Please go ahead, sir.

早上好，歡迎參加 Under Armour 2024 年第三季電話會議。 （操作員指示）請注意，此事件正在記錄中。現在，我想將會議交給投資者關係、財務和企業發展部高級副總裁 Lance Allega。先生，請繼續。

Thank you. Good morning, and welcome to Under Armour's Third Quarter Fiscal 2024 Earnings Conference Call. Today's event is being recorded for replay. Joining us on today's call are Under Armour President and CEO, Stephanie Linnartz; and CFO, Dave Bergman. Our remarks today will include certain forward-looking statements that reflect Under Armour's management's current view of our business as of February 8, 2024. These statements may include projections for our business in the present and future quarters and fiscal years.

謝謝。早安，歡迎參加 Under Armour 2024 財年第三季財報電話會議。今天的事件正在錄製以供重播。參加今天電話會議的還有 Under Armour 總裁兼執行長 Stephanie Linnartz；和財務長戴夫·伯格曼（Dave Bergman）。我們今天的評論將包括某些前瞻性陳述，這些陳述反映了 Under Armour 管理層對我們截至 2024 年 2 月 8 日業務的當前看法。

Forward-looking statements are not guarantees of future business performance and our actual results may differ materially from those expressed or implied in the views provided. Statements made are subject to risks and other uncertainties detailed in this morning's press release and documents filed regularly with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Today's discussion may also include the use of non-GAAP references.

前瞻性陳述並不能保證未來的業務表現，我們的實際結果可能與所提供的觀點中表達或暗示的結果有重大差異。所發表的聲明受到今天上午的新聞稿和定期向美國證券交易委員會提交的文件中詳細說明的風險和其他不確定因素的影響，包括我們的 10-K 表年度報告和 10-Q 表季度報告。今天的討論可能還涉及使用非 GAAP 參考。

Under Armour believes these measures provide investors with a helpful perspective on underlying business trends. When applicable, these measures are reconciled to the most comparable U.S. GAAP measures. Reconciliations of which, along with other pertinent information can be found in this morning's press release and at about.underarmour.com. With that, I will turn the call over to Stephanie.

Under Armour 認為這些措施為投資者提供了了解潛在商業趨勢的有益視角。在適用的情況下，這些指標會與最具可比性的美國 GAAP 指標相協調。有關這些對帳單以及其他相關資訊可在今天上午的新聞稿中以及 about.underarmour.com 上找到。說完這些，我將把電話轉給史蒂芬妮。

Thank you, Lance, and good morning to everyone joining today's call. Let me begin by saying that despite a challenging retail environment and consumer buying behavior that was inconsistent market to market we are pleased with the results we achieved in our third quarter, with revenue in line with our November outlook and better-than-expected earnings.

謝謝你，蘭斯，祝今天參加電話會議的各位早安。首先我要說的是，儘管零售環境充滿挑戰，且消費者購買行為在市場之間並不一致，但我們對第三季度取得的業績感到滿意，收入與我們 11 月份的預期一致，且盈利好於預期。

As I approach my first year at Under Armour, I am genuinely inspired by the power of the brand and our commitment to the strategies we are undertaking to unlock our full potential. Following our Protect This House 3 plan launched last spring, I am pleased with our progress in driving global demand creation and our focus on evolving and simplifying our approach to connecting with consumers.

在即將迎來加入 Under Armour 的第一年之際，我深深被品牌的力量以及我們為釋放全部潛力所採取的策略所鼓舞。繼去年春天啟動「保護這個家 3」計畫以來，我對我們在推動全球需求創造方面取得的進展以及我們致力於發展和簡化與消費者溝通的方式感到滿意。

I also feel good about how our efforts are shaping up to deliver elevated design and products to the athletes we serve in nearly 100 countries around the world, strengthening our ability to drive success across our largest growth opportunities in footwear, sports style and our women's business. With respect to driving U.S. sales, this remains a multiyear journey. And candidly, we have much more work to do to become a healthier business capable of returning to growth in our largest market.

我也對我們的努力感到高興，我們正在為全球近 100 個國家的運動員提供高端的設計和產品，增強了我們在鞋類、運動風格和女性業務等最大增長機會中取得成功的能力。對於推動美國銷售而言，這仍是一段多年的歷程。坦白說，我們還有很多工作要做，才能成為一家更健康的企業，能夠在我們最大的市場中恢復成長。

As detailed previously, inconsistency has permeated our U.S. business over the past years in how we go to market across consumers, customers and geographies, how our product is created and delivered with a consistent design language, channel segmentation and how we show up in our owned physical and digital businesses. With a critical mass of work underway, an additional analysis that will yield more work and decision points in the months ahead, we are on right path to addressing these inconsistencies and turning them into strength.

如前所述，過去幾年來，我們的美國業務在如何面向不同消費者、客戶和地區進入市場、如何以一致的設計語言創造和交付產品、通路細分以及我們如何展現自己的實體和數位業務等方面都存在著不一致的情況。隨著大量工作的進行以及未來幾個月將產生更多工作和決策點的額外分析，我們正走在解決這些不一致問題並將其轉化為優勢的正確道路上。

All of this will take time, and it starts with leadership. To drive success, the right talent must be in the right places with the trust and the freedom necessary to empower execution. Bolstering our leadership was amongst my highest priorities in my first year at UA, and we've made excellent progress. Since last summer, we've added several new experienced officers to lead our product, design, consumer, supply chain and communications teams.

這一切都需要時間，而且首先要有領導力。為了取得成功，必須將合適的人才放在適當的位置，並給予他們必要的信任和自由，以推動執行。加強我們的領導地位是我在 UA 任職第一年的首要任務之一，而且我們已經取得了顯著的進步。自去年夏天以來，我們增加了幾位新的經驗豐富的官員來領導我們的產品、設計、消費者、供應鏈和通訊團隊。

Additionally, we named a 9-year company veteran to lead our Americas region and announced the return of the UA veteran to head our EMEA business. We have also streamlined our business to be more responsive, including our marketing functions, where we recently consolidated our global and North American teams who will report to a new Chief Marketing Officer, a search that's currently underway. This unification will bring a cleaner integrated approach to empower faster decision-making to accelerate our ability to connect more deeply with consumers.

此外，我們任命了一位在公司工作 9 年的資深人士來領導我們美洲地區的業務，並宣布這位 UA 資深人士回歸，領導我們歐洲、中東和非洲地區的業務。我們也簡化了業務，以提高回應速度，包括我們的行銷職能。 我們最近整合了全球和北美團隊，他們將向新任首席行銷長匯報，目前搜尋工作正在進行中。這種統一將帶來一種更清晰的整合方法，以便更快地做出決策，從而加速我們與消費者建立更深層聯繫的能力。

About 2/3 of my executive leadership team is new compared to last year and each of these leadership changes is tied directly to the inconsistencies I mentioned earlier. So we are making good progress and hitting challenges head on. The next steps are activating and empowering these teams to drive our strategic priorities, creating a future flywheel of operational excellence and execution that drives consistency back into our business.

與去年相比，我的執行領導團隊中大約有 2/3 是新成員，而每一次領導層變動都與我之前提到的不一致直接相關。因此，我們正在取得良好進展並迎接挑戰。下一步是啟動和授權這些團隊推動我們的策略重點，創造未來卓越營運和執行的飛輪，推動我們業務的一致性。

During the third quarter, I visited our Asia Pacific region and met with our team, athletes and retail and factory partners. Like my EMEA trip, I am encouraged by the energy, passion and effort we're bringing to our daily business. I also toured many of our North American stores to evaluate the opportunities we have to leverage our full-price locations as a premium brand showcase to further build relevance with our consumers.

第三季度，我訪問了我們的亞太地區，並會見了我們的團隊、運動員以及零售和工廠合作夥伴。就像我的歐洲、中東和非洲之行一樣，我們在日常業務中展現的活力、熱情和努力令我感到鼓舞。我還參觀了我們在北美的許多商店，評估我們利用全價店作為高端品牌展示的機會，以進一步與消費者建立聯繫。

In the near to midterm, as we navigate a dynamic global environment, and our new leaders take time to ramp up we are focused on cost management and profitability, as we close out fiscal '24 and assess how to best to allocate our investments in the year ahead. This includes efforts to understand where and how we are putting our resources to work to drive the best possible returns and identifying which strategies will be most critical to driving demand creation over the long term, especially in North America.

在近期至中期，隨著我們在動態的全球環境中前行，我們的新領導人需要時間來提升自己，我們將專注於成本管理和盈利能力，因為我們將結束 24 財年並評估如何在未來一年最好地分配我們的投資。這包括努力了解我們在哪裡和如何投入資源以獲得最佳回報，並確定哪些策略對於推動長期需求創造最為關鍵，特別是在北美。

With more strategic deployment of our marketing resources, we continue to see positive momentum here. A great example is the Curry Brand, driven by the Curry 11 basketball shoe. And we recently launched the Dub Nation pack celebrating Stephen's commitment to the Golden State Warriors fans with unique colorways for the 11, the Curry 1 Retro and the Spawn FloTro. The Curry Brand also dropped exciting collaborations with Bruce Lee and apparel and footwear, including the new Curry SlipSpeed. And with the addition of De'Aaron Fox from the Sacramento Kings, we're looking forward to De'Aaron's first signature shoe later this year.

隨著我們對行銷資源進行更具策略性的部署，我們繼續看到積極的勢頭。一個很好的例子就是 Curry 品牌，由 Curry 11 籃球鞋帶動。我們最近推出了 Dub Nation 系列，以慶祝史蒂芬對金州勇士球迷的承諾，其中包括 11、Curry 1 Retro 和 Spawn FloTro 的獨特配色。 Curry 品牌也與李小龍展開了令人興奮的合作，推出了服裝和鞋類，其中包括新款 Curry SlipSpeed。隨著薩克拉門托國王隊德阿龍福克斯的加盟，我們期待今年晚些時候德阿龍的首款簽名鞋。

In Global Football, we're leveling up our roster with some of the best up-and-coming talent at the highest levels of sport. We recently signed Mexican national team players, Sebastian Cordova, FC Barcelona's Fermín López and Real Madrid's Antonio Rüdiger. As we look to grow relevance in the world's most popular sport, this marks a significant move to bolster our presence. So we are very excited about the possibilities this brings in the years ahead.

在全球足球方面，我們正在招募一些在最高水平的體育賽事中嶄露頭角的最優秀人才，以提升我們的陣容。我們最近簽下了墨西哥國家隊球員塞巴斯蒂安·科爾多瓦、巴塞隆納足球俱樂部的費爾門·洛佩斯和皇家馬德里隊的安東尼奧·呂迪格。當我們尋求在世界上最受歡迎的運動中提升影響力時，這標誌著我們增強影響力的重要舉措。因此，我們對未來幾年帶來的可能性感到非常興奮。

In American football, I want to congratulate our hometown Baltimore Ravens for a fantastic season, reaching the AFC championship game, including UA Athlete, Kyle Hamilton, who was named a first team All Pro and to the Pro Bowl in just a second year.

在美式足球方面，我要祝賀我們家鄉的巴爾的摩烏鴉隊度過了一個精彩的賽季，進入了 AFC 冠軍賽，其中包括 UA 運動員凱爾·漢密爾頓，他在第二年就被評為第一陣容全職業球員併入選職業碗。

On the college side of the game, (inaudible) finish this season with a dominant ball win powered by Under Armour performance gear on the field and had off the field Swagger with UA SlipSpeed, Heat Gear base layer, hoodies and fleece. Adding an excellent example of our evolving approach to brand activation, was last month's UA Next All-American event in Orlando. We're the best U.S. high school volleyball and football players engaged in a week of unforgettable experiences and elite level competition.

在大學比賽方面，（聽不清楚）以壓倒性的優勢結束了本賽季，在球場上，他們憑藉 Under Armour 高性能裝備取得了勝利，而在球場下，他們則憑藉 UA SlipSpeed、Heat Gear 底層、連帽衫和羊毛衫取得了勝利。上個月在奧蘭多舉辦的 UA Next All-American 活動是我們不斷發展的品牌活化方法的一個絕佳例子。我們是美國最優秀的高中排球和足球運動員，參加了一周難忘的經歷和精英級別的比賽。

As a Pinnacle Grassroots program, this provides the next generation of athletes an opportunity to elevate their physical and mental game. And of course, they were kitted out an amazing UA gear, like the all-new SlipSpeed Mega, a maximalist running shoe in Fire and Ice colorways and other products like Unstoppable pants, Infinite Pro running shoes and all the accessories necessary to excel at their sport.

作為 Pinnacle Grassroots 計劃的一部分，這為下一代運動員提供了提升身體和心理素質的機會。當然，他們還配備了令人驚嘆的 UA 裝備，例如全新的 SlipSpeed Mega（一款具有冰與火色彩的極簡主義跑鞋），以及其他產品，例如 Unstoppable 褲子、Infinite Pro 跑鞋以及在運動中脫穎而出所需的所有配件。

With a massive social media activation, the UA Next All-American week demonstrates how we maximize the authentic connection to sports culture showcasing product innovations that make athletes better and leveraging up-and-coming influencers to generate brand buzz and engagement. We have also made significant strides across social media over the past year and continue to gain traction. During this time, our Instagram followers showed strength across all UA accounts with a significant uptick in the Curry Brand.

透過大規模的社群媒體活動，UA Next All-American 週展示了我們如何最大限度地與體育文化建立真實的聯繫，展示讓運動員變得更好的產品創新，並利用新興的影響者來引起品牌轟動和參與度。在過去的一年裡，我們在社群媒體方面也取得了重大進展，並繼續獲得關注。在此期間，我們的 Instagram 粉絲在所有 UA 帳戶中均表現出強勁勢頭，其中 Curry 品牌的粉絲數量顯著上升。

Likewise, our TikTok followers have also gotten stronger as have our engagement rates. This past quarter, our focus was elevating footwear and sports style and our strategic collaboration with external content creators and influencers meaningfully helped to amplify the impact of our social media content. To drive engagement and demand for the brand, we must deliver elevated design and products. With the appointment of Yassine Saidi as our Chief Product Officer, I am incredibly excited about the evolution and style for our apparel and footwear.

同樣，我們的 TikTok 粉絲數量也不斷增加，參與率也不斷提高。過去一個季度，我們的重點是提升鞋類和運動風格，與外部內容創作者和影響者的策略合作有助於擴大我們社群媒體內容的影響力。為了推動品牌的參與和需求，我們必須提供高品質的設計和產品。隨著亞辛·賽迪 (Yassine Saidi) 被任命為我們的首席產品官，我對我們的服裝和鞋類的演變和風格感到無比興奮。

Joining us just last week Yassine brings nearly 20 years of industry experience from several powerhouse brands with a deep pedigree in developing authentic performance and sportswear apparel and a reputation as a significant influencer in the sneaker market.

亞辛上週剛加入我們，他擁有來自多個強大品牌的近 20 年行業經驗，在開發正宗性能和運動服裝方面擁有深厚的經驗，並在運動鞋市場享有重要影響者的聲譽。

With our Chief Product Officer and a new Head of Design in place, along with additional apparel, sneaker and branding experts, we are making significant progress in getting the right team together to ensure a balanced approach to continuing to deliver industry-leading performance innovations on pitch, field and court with an ability to attack the massive sports sell opportunity more effectively.

隨著我們的首席產品長和新設計主管以及其他服裝、運動鞋和品牌專家的到位，我們在組建合適團隊方面取得了重大進展，以確保以平衡的方式繼續在球場、運動場和球場上提供行業領先的性能創新，並能夠更有效地抓住巨大的體育銷售機會。

Given our product creation cycle, it will take time for this newly led team to start driving more critical mass into the equation, yet we're not hitting pause until then. We have a lot of newness to be excited about as we head into spring, summer '24, especially in apparel. Over the past few quarters, we've made substantial progress in style consolidation and leaning into premium as we started to place smaller run capsules and reposition existing products within our Sportstyle offering.

考慮到我們的產品創建週期，這個新領導的團隊需要時間來開始將更多的臨界質量納入其中，但在此之前我們不會暫停。進入2024年春夏季，我們有很多新鮮事物值得興奮，特別是在服裝方面。在過去幾個季度中，我們在風格整合和向高端傾斜方面取得了實質進展，因為我們開始在 Sportstyle 產品中推出小眾膠囊系列並重新定位現有產品。

Although early, we are excited for fresh updates of our key apparel franchises to hit shelves later this spring, including the Unstoppable Air Vent, a new bag year on-trend silhouette of our classic woven pants. Additionally, an expanded line of our soft and versatile Meridian performance apparel is due out this spring. With stylist flattering products for women, including body suits and tanks that she can wear from the classroom to practice and from the gym to the office.

儘管還為時過早，但我們仍對將於今年春季晚些時候上市的主要服裝系列的全新更新感到興奮，其中包括 Unstoppable Air Vent，這是一款符合今年流行趨勢的經典編織褲款式。此外，我們的柔軟且多功能的 Meridian 高性能服裝系列將於今年春季推出。為女性提供時尚美觀的產品，包括緊身衣和背心，她們可以穿著從教室到練習場、從健身房到辦公室。

Next is an update to our iconic warm weather base layer with super light heat gear compression shirts and shorts that wick sweat from maximum performance, receiving new and improved fits, colorways and styles for more versatile occasions.

接下來是我們標誌性的溫暖天氣底層的更新，採用超輕熱裝備壓縮襯衫和短褲，可最大程度地吸汗，並採用全新和改進的版型、顏色和款式，以適應更多場合。

Our retail partners are excited about this evolution and bookings for this product are strong, especially our women's products.

我們的零售合作夥伴對這一發展感到非常興奮，該產品的預訂量很高，尤其是我們的女性產品。

Speaking of our women's business, we were honored to have received 2 Women's Health Fitness Magazine awards. Our UA SmartFarm Evolution mid sports bra received the best sports bra overall and our Women's UA Reign 6 training footwear was also recognized. We are proud of these wins, which help drive more incredible momentum in this business, especially as we expand our Sportstyle offerings.

說到我們的女性業務，我們很榮幸獲得兩項《女性健康健身雜誌》獎。我們的 UA SmartFarm Evolution 中幫運動胸罩獲得了最佳運動胸罩的稱號，我們的女子 UA Reign 6 訓練鞋也獲得了認可。我們對這些勝利感到自豪，它們有助於推動我們業務領域更令人難以置信的發展勢頭，特別是在我們擴大 Sportstyle 產品系列時。

Shifting to our ability to harness innovation for our athletes in the planet, I'd highlight our collaboration with Celanese, a global chemical and materials company in developing a new fiber for performance stretch fabrics called Neolast. This incredibly innovative fiber has the potential to offer our industry a high-performing, more sustainable alternative to elastane or spandex, which has recycling challenges.

關於我們為全球運動員提供創新能力的轉變，我想強調一下我們與全球化學和材料公司塞拉尼斯 (Celanese) 的合作，共同開發一種名為 Neolast 的高性能彈力面料新纖維。這種極具創新性的纖維有可能為我們的產業提供高性能、更永續的彈性纖維或斯潘德克斯替代品，而後者在回收方面面臨挑戰。

With the first apparel products due out later this year, we believe Neolast fiber could have a transformative impact on Under Armour in the textile industry.

隨著首批服裝產品將於今年稍後推出，我們相信 Neolast 纖維將對 Under Armour 在紡織業產生變革性的影響。

Next is footwear, which remains our single most significant growth opportunity, and we know we have a lot of work to do here. During the third quarter, our footwear business was down 7% in part due to a tougher prior year growth comparison of 25%, but also due to softer demand, primarily in North America.

接下來是鞋類，這仍然是我們最重要的成長機會，我們知道我們在這方面還有很多工作要做。第三季度，我們的鞋類業務下降了 7％，部分原因是由於去年同期的增幅為 25％，但也是由於需求疲軟（主要是在北美）。

In the rearview, we recognized some of the inconsistencies from our past are showing up in our current results. However, we believe these challenges are near term in nature, and we continue to look forward by evolving our footwear strategies and investments to support our long-term growth expectations. Rounding out our product leadership changes, a search for a new head of footwear is also underway, further emphasizing our commitment to having the right talent to drive the right results in the years ahead.

回顧過去，我們認識到過去的一些不一致之處正在反映在當前的結果中。然而，我們相信這些挑戰是短期的，我們將繼續展望未來，並不斷發展我們的鞋類策略和投資，以支持我們的長期成長預期。除了產品領導層的變動之外，我們還在尋找新的鞋類主管，這進一步強調了我們致力於擁有合適的人才在未來幾年推動正確結果的承諾。

Leveraging our knowledge of knits, expertise in midsoles and innovative cushioning, we have made good headway in our approach to our running footwear. As a highlight, our Velociti and Infinite running franchises are getting important updates for spring/summer '24 with base, pro and elite styles to cover our good, better, best segmentation. In this spirit, we are intensely focused on franchises identifying where we can land and partnering with our wholesale customers to scale our footwear business more effectively.

利用我們對針織物的了解、中底的專業知識和創新的緩衝技術，我們在跑步鞋方面取得了良好的進展。值得一提的是，我們的 Velociti 和 Infinite 跑步系列在 2024 年春夏進行了重要更新，推出了基礎款、專業款和精英款，以涵蓋我們「好」、「更好」、「最好」的細分市場。本著這種精神，我們高度重視特許經營，確定我們可以在哪裡落地，並與我們的批發客戶合作，以更有效地擴大我們的鞋類業務。

Shifting next to our Americas business and much work remains. During the third quarter, our North American business was down 12%, which I will note was in line with our expectations and reflective of a challenging wholesale environment in the U.S. and softer demand. Here, we remain focused on serving our retail partners and working with them to optimize our assortment and segmentation, ensuring greater overall consistency and profitability.

我們將把業務轉移到美洲，還有很多工作要做。第三季度，我們的北美業務下降了 12%，符合我們的預期，並反映了美國批發環境的挑戰和需求的疲軟。在這裡，我們仍然專注於服務我們的零售合作夥伴並與他們合作優化我們的產品組合和細分，確保更高的整體一致性和獲利能力。

In our North American DTC business, I'd highlight that underneath flattish results in the quarter, we are encouraged by specific operational gains made during the crucial holiday period. These included exceptional customer service scorecards, elevated talent across our fleet and significantly improved in-stock levels. Thus, our work to become a better retailer is beginning to shine through.

在我們的北美 DTC 業務中，我想強調的是，儘管本季業績平淡，但我們對關鍵假期期間取得的具體營運收益感到鼓舞。這些包括卓越的客戶服務記分卡、整個車隊的人才隊伍的提升以及庫存水準的顯著提高。因此，我們成為更好的零售商的努力開始顯現成效。

We are also progressing on our new full-price brand house design and are set to test a smaller, easier- to-navigate format with a more premium and curated product positioning. One of the bright spots for our North American DTC business continues to be our UA Rewards Loyalty Program with encouraging member engagement and spending trends. Our enrollment has hit nearly 3 million members, which is well ahead of the target we set for fiscal '24. Our members continue to show a higher premium purchase frequency than nonmembers in these early months.

我們也正在推進新的全價品牌屋設計，並準備測試更小、更易於瀏覽的格式以及更優質、更精心策劃的產品定位。我們北美 DTC 業務的亮點之一仍然是我們的 UA 獎勵忠誠度計劃，該計劃令人鼓舞的會員參與度和消費趨勢。我們的會員人數已達到近300萬，遠遠超出了我們為24財年設定的目標。在最初的幾個月裡，我們的會員繼續表現出比非會員更高的保費購買頻率。

We drove engagement during the third quarter via our first-ever members week, along with 8 members-only holiday campaigns, which directly contributed to peak holiday business. We are also working to improve our digital business. Given that our North American e-commerce channel has been tempered during fiscal '24, as we turn to fiscal '25, we are exploring plans to reduce our promotional dependence to create a more premium online presence. Simply put, ua.com will become a showcase for our brand. We have done a lot of work to make our website more functional to increase conversion, but we must create a more premium shopping experience to elevate the brand.

我們在第三季度透過首次會員週以及 8 個會員專屬假日活動提高了會員參與度，直接促進了假日業務的高峰。我們也正在努力改善我們的數位業務。鑑於我們的北美電子商務管道在24財年受到了影響，在邁向25財年之際，我們正在探索減少對促銷的依賴以打造更優質的在線業務的計劃。簡而言之，ua.com 將成為我們品牌的展示平台。我們已經做了很多工作來使我們的網站更具功能性以提高轉換率，但我們必須創造更優質的購物體驗來提升品牌。

Closing out North America, we recently appointed Kara Trent to head up our largest region. Kara has been with Under Armour since 2015 and most recently led our EMEA business to consistent double-digit revenue growth during her tenure. She is an exemplary leader and an industry veteran who builds performances teams, disciplined segmentation, optimized marketing strategies and strong wholesale relationships. As she steps into this role, I am confident that she has the right skill set, demeanor and drive necessary to put this business back on a path of top line growth over the long term.

在結束北美業務後，我們最近任命了 Kara Trent 來領導我們最大的地區。 Kara 自 2015 年起就職於 Under Armour，任職期間，她帶領我們的 EMEA 業務實現了持續的兩位數收入成長。她是一位模範領導者和行業資深人士，建立了績效團隊、嚴謹的細分、優化的行銷策略和強大的批發關係。當她擔任這一職務時，我相信她擁有正確的技能、風度和動力，可以讓這項業務在長期內重回成長軌道。

And finally, another leadership appointment is the return of 25-year industry and 9-year Under Armour veteran, Kevin Ross, who will serve as Kara's replacement in EMEA to lead that business as Senior Vice President and Managing Director. With deep experience in general management, sales team sports and product creation, we look forward to Kevin's ability to hit the ground running in one of our most successful markets.

最後，另一項領導層任命是擁有 25 年行業經驗和 9 年 Under Armour 經驗的 Kevin Ross 的回歸，他將接替 Kara 擔任 EMEA 地區的高級副總裁兼董事總經理，領導該業務。憑藉在整體管理、銷售團隊運動和產品創造方面的豐富經驗，我們期待 Kevin 能夠在我們最成功的市場之一中迅速發揮作用。

In summary, as we close out the fiscal year amid a dynamic market environment, we are incredibly focused on managing the business and making the hard but necessary decisions now to set ourselves up for a more promising future. In the near term, this is involved making several leadership changes engineered to address our areas of opportunity. In concert, we are committed to prudent cost management, including identifying and optimizing the investments in our business towards the highest returns.

總而言之，在動態的市場環境中結束財政年度之際，我們高度重視業務管理，並做出艱難但必要的決定，為更光明的未來做好準備。短期內，這將涉及進行幾項領導層變動，以解決我們的機會領域。同時，我們致力於審慎的成本管理，包括識別和優化業務投資以獲得最高回報。

Over the mid- to long-term, we are confident in our ability to drive global demand creation and elevate design and product while ensuring the trifecta of product, place and promotion, are optimized to put us on a trajectory to reignite growth and deliver improved value to our shareholders. With that, I will turn it over to Dave for his comments on the quarter and our outlook.

從中期到長期，我們有信心推動全球需求創造、提升設計和產品，同時確保產品、地點和促銷三者得到優化，使我們走上重新點燃成長的軌道，並為股東創造更高的價值。接下來，我將把主題轉交給戴夫，請他評論本季的情況和我們的展望。

Thanks, Stephanie, and good morning, everyone. Our third quarter revenue was down 6% to $1.5 billion, which align with our outlook. On a regional basis, North America revenue declined by 12%, coming in at $915 million, which was in line with our expectations. Wholesale was down meaningfully due to challenges in our full-price business, partially offset by growth related to inventory management strategies, which included increased sales to the off-price channel.

謝謝，史蒂芬妮，大家早安。我們第三季的營收下降 6% 至 15 億美元，這與我們的預期一致。從地區來看，北美地區收入下降了 12%，至 9.15 億美元，符合我們的預期。由於全價業務面臨挑戰，批發業務大幅下降，但庫存管理策略相關的成長（包括折扣通路銷售額增加）部分抵消了這一下降。

Our North American DTC business was down slightly during the quarter. EMEA revenue was up 7% to $284 million or up 2% on a currency-neutral basis. This was driven by strong growth in our DTC business related to improved traffic trends across our retail and e-commerce channels. Our EMEA wholesale business was also up during the quarter.

本季度，我們的北美 DTC 業務略有下滑。歐洲、中東和非洲地區的營收成長 7%，達到 2.84 億美元，按匯率中性計算成長 2%。這是由於我們的零售和電子商務通路的流量趨勢改善導致 DTC 業務強勁成長所致。本季度，我們的 EMEA 批發業務也實現了成長。

APAC revenue was up 7% to $212 million or up 8% on a currency-neutral basis. We saw solid sales growth within our retail stores and wholesale was also up during the quarter. China was a leading contributor to third quarter growth. And finally, our Latin American business was up 9% to $70 million in the quarter or up 3% on a currency-neutral basis.

亞太地區營收成長 7%，至 2.12 億美元，以匯率中性計算成長 8%。我們發現零售店的銷售額穩定成長，批發量在本季也有所成長。中國是第三季經濟成長的主要貢獻者。最後，我們的拉丁美洲業務本季成長 9%，達到 7,000 萬美元，按匯率中性運算成長 3%。

From a channel perspective, wholesale revenue was down 13% to $712 million, with decreases in our full price and distributor businesses, partially offset by higher sales to the off-price channel. Direct-to-consumer revenue increased by 4% to $741 million due to a 5% increase in our owned and operated store revenue and a 2% increase in our e-commerce business. And licensing revenue decreased 2% in the quarter to $29 million, driven by declines in our Japanese and North American licensee businesses.

從通路角度來看，批發收入下降 13% 至 7.12 億美元，全價和分銷商業務下降，但折扣通路銷售額的增加部分抵消了這一下降。直接面向消費者的收入成長了 4%，達到 7.41 億美元，這得益於我們的自有和經營商店收入成長了 5%，以及我們的電子商務業務成長了 2%。由於日本和北美授權業務的下滑，本季授權收入下降 2% 至 2,900 萬美元。

By product type, apparel revenue was down 6%, driven primarily by declines in our train and outdoor businesses, partially offset by strength in our sideline in basketball categories. Footwear was down 7% due to a tough comparison and softer demand, primarily in North America. As a reminder, we had robust growth during the third quarter of fiscal '23 as a significant volume of footwear products that were previously delayed due to COVID-related factor constraints meaningfully hit the market. And finally, our accessories business was flat year-over-year.

按產品類型劃分，服裝收入下降 6%，主要原因是我們的火車和戶外業務的下滑，但籃球類別的副業表現強勁部分抵消了這一下降。由於對比困難和需求疲軟（主要是北美地區），鞋類銷量下降了 7%。提醒一下，我們在 23 財年第三季實現了強勁成長，因為大量先前受 COVID 相關因素限製而延遲的鞋類產品成功進入市場。最後，我們的配件業務較去年同期持平。

Moving down moving the P&L. Gross margin was up 100 basis points to 45.2% during the third quarter driven by approximately 260 basis points of supply chain benefits, mainly due to lower freight costs. These tailwinds were better than our previous expectation and were responsible for most of the overdrive on gross margin. These benefits were partially offset by 140 basis points of unfavorable pricing due to increased promotional activities in our DTC business, our proactive strategy to reduce inventory through our factory houses and deeper discounts in our sales to the off-price channel along with about 20 basis points of unfavorable foreign currency impacts.

向下移動損益表。第三季毛利率上升 100 個基點至 45.2%，主要得益於供應鏈效益約 260 個基點，而供應鏈效益主要由於運費下降。這些順風因素好於我們先前的預期，也是毛利率大幅提升的主要原因。這些收益被 140 個基點的不利定價部分抵消，原因是我們 DTC 業務的促銷活動增加、我們透過工廠減少庫存的主動策略以及我們在折扣通路銷售中提供更大的折扣，以及約 20 個基點的不利外匯影響。

In the third quarter, SG&A expenses were flat year-over-year at $602 million. Excluding a $23 million litigation reserve expense, adjusted SG&A expenses were down 4% to $579 million.

第三季度，銷售、一般及行政開支與去年同期持平，為 6.02 億美元。不包括 2,300 萬美元的訴訟準備金費用，調整後的銷售、一般及行政費用下降 4% 至 5.79 億美元。

Next, operating income was $70 million. And excluding our litigation reserve expense, our adjusted operating income was $92 million, which was above our outlook of $65 million to $75 million due to the gross margin overdrive and lower SG&A.

其次，營業收入為 7,000 萬美元。並且，除去訴訟準備金費用，我們的調整後營業收入為 9,200 萬美元，由於毛利率超額完成且銷售、一般及行政費用下降，高於我們預期的 6,500 萬至 7,500 萬美元。

After tax, we realized a net income of $114 million or $0.26 of diluted earnings per share. Excluding a $50 million benefit from our final earnout on the sale of the MyFitnessPal platform and a $23 million litigation reserve expense along with the related tax impacts of each, adjusted net income was $84 million or $0.19 of adjusted diluted earnings per share. This came in above our third quarter outlook of $0.09 to $0.11, due to our adjusted operating income overdrive and favorability on the other expense and tax lines.

稅後，我們實現淨收入 1.14 億美元，即每股攤薄收益 0.26 美元。不包括出售 MyFitnessPal 平台的最終收益中的 5,000 萬美元和 2,300 萬美元的訴訟準備金費用以及每項相關的稅收影響，調整後的淨收入為 8,400 萬美元，或調整後每股攤薄收益 0.19 美元。由於我們調整後的營業收入超額完成以及其他費用和稅收項目的有利影響，這一數字高於我們第三季的 0.09 美元至 0.11 美元的預期。

Now moving on to the balance sheet. At the end of the third quarter, our inventory was down 9% to $1.1 billion as we trended towards normalized levels. This was in line with our outlook. And as we end the year, we anticipate our inventory to be down at a mid-teen percentage rate, which should put us close to $1 billion.

現在轉到資產負債表。第三季末，我們的庫存下降了 9%，至 11 億美元，趨於正常水準。這符合我們的觀點。到今年年底，我們預計庫存下降幅度將達到百分之十左右，這將使我們的庫存接近 10 億美元。

Rounding out the quarter, our cash and cash equivalents were $1 billion, and we had no borrowings under our $1.1 billion revolving credit facility. And finally, we repurchased $25 million of Class C common stock during the third quarter. This concluded our 2-year $500 million program announced in February of 2022, thus retiring 45.6 million previously outstanding shares.

截至本季度，我們的現金和現金等價物為 10 億美元，且我們在 11 億美元循環信貸額度下沒有任何借款。最後，我們在第三季回購了價值 2,500 萬美元的 C 類普通股。這結束了我們在 2022 年 2 月宣布的為期兩年的 5 億美元計劃，從而註銷了先前流通的 4,560 萬股股票。

Next, let's turn to our full-year outlook. To start, we have tightened our revenue expectation to a 3% to 4% decline for the full year, which is within our previous range of being down 2% to 4%. The shift within the range represents continued softer wholesale revenue. Breaking this down further, we now expect revenue in North America to be down at a high single-digit rate versus the previous expectation of a 5% to 7% decline. And we now expect our international business to be up at a high single-digit rate versus the previous low double-digit rate increase.

接下來，讓我們來看看全年展望。首先，我們已將全年營收預期縮小至下降 3% 至 4%，這在我們先前預測的下降 2% 至 4% 的範圍內。範圍內的變化表示批發收入持續走軟。進一步分析，我們現在預計北美的收入將以高個位數下降，而先前預期的是降幅為 5% 至 7%。我們現在預計，我們的國際業務將以較高的個位數成長，而先前的增幅則為較低的兩位數。

From a product perspective, we expect our apparel and footwear businesses to both be down at a low single-digit percentage rate for the full year. Next, we expect gross margin to be up 120 to 130 basis points versus our previous expectation of a 100 to 125 basis point increase. This improvement is related to supply chain benefits and lower-than-expected full-year sales to the off-price channel.

從產品角度來看，我們預計全年服裝和鞋類業務的銷售額都將以低個位數的百分比下降。接下來，我們預期毛利率將上升 120 至 130 個基點，而先前我們預期毛利率將上升 100 至 125 個基點。這項改善與供應鏈效益以及折扣通路全年銷售額低於預期有關。

Moving down the P&L. Full year SG&A should be flat to down slightly, which is unchanged from our previous expectation. Dropping this through, our reported operating income is expected to reach $287 million to $297 million. Excluding the company's litigation reserve, adjusted operating income is expected to reach $310 million to $320 million. Putting it all together, our reported diluted earnings per share is expected to be $0.57 to $0.59, which includes a $0.12 after-tax benefit from our final earn-out on the sale of the MyFitnessPal platform and a $0.05 negative impact from our litigation reserve. Excluding these net positive impacts of $0.07, we expect adjusted diluted earnings per share to be between $0.50 and $0.52.

降低損益表。全年銷售、一般及行政開支應持平或略有下降，與我們先前的預期一致。除去這些，我們報告的營業收入預計將達到 2.87 億美元至 2.97 億美元。除去公司的訴訟準備金，調整後的營業收入預計將達到 3.1 億美元至 3.2 億美元。綜合考慮所有這些因素，我們報告的每股攤薄收益預計為 0.57 美元至 0.59 美元，其中包括出售 MyFitnessPal 平台的最終盈利中的 0.12 美元稅後收益和訴訟準備金中的 0.05 美元負面影響。除去這 0.07 美元的淨正面影響，我們預計調整後每股攤薄收益將在 0.50 美元至 0.52 美元之間。

So to close, we remain encouraged by our evolving strategies to turn our inconsistencies into strengths. At the same time, we are maintaining a cautious view of the market, and we will continue to work the levers of our P&L to deliver appropriate financial performance while positioning the company for long-term growth. That means managing our supply chain to maximize gross margin opportunities, tightening expenses, optimizing investments, focusing on cash management and making prudent capital expenditures in the near to midterm. Without question, there is much work ahead of us and we look forward to sharing more specific details on our year-end call in May, where we will provide our initial thoughts on fiscal '25.

最後，我們仍然對不斷發展的策略感到鼓舞，我們將不一致轉化為優勢。同時，我們對市場保持謹慎的看法，並將繼續利用損益表的槓桿來實現適當的財務業績，為公司的長期成長做好準備。這意味著管理我們的供應鏈以最大限度地提高毛利率機會，緊縮開支，優化投資，注重現金管理並在近期至中期進行審慎的資本支出。毫無疑問，我們還有許多工作要做，我們期待在 5 月的年終電話會議上分享更多具體細節，屆時我們將提供對 25 財年的初步想法。

That said, we have confidence in our market sector and that our work will proactively set us up to return to creating value for our shareholders. And with that, we finished our prepared remarks, so I'll turn it back to the operator for Q&A. Operator?

儘管如此，我們對我們的市場部門充滿信心，我們的工作將積極地幫助我們重新為股東創造價值。我們的準備好的發言到此結束，我將把發言交還給接線員進行問答。操作員？

Our next question comes from Simeon Siegel from BMO Capital Markets.

下一個問題來自 BMO 資本市場的 Simeon Siegel。

Nice progress, guys. So Stephanie just wondering if you could share a little bit more on your broader color on how you're viewing North America landscape. Maybe how are you guys thinking about when you think about the proactive inventory management. I feel like you're in a good place and maybe versus competition. Just any color there. And then if we can just -- any thoughts on freight and promotions embedded in the full year guidance?

大家，進展不錯。所以史蒂芬妮只是想知道您是否可以再分享一下您對北美景觀的更廣泛的看法。也許當你們考慮主動庫存管理時，你們是怎麼想的。我感覺你處於一個很好的位置，也許與競爭對手相比。任何顏色都可以。然後，如果我們可以的話——您對全年指引中包含的貨運和促銷活動有什麼看法？

Sure. So I'll start, and then and Dave, I'm sure we'll jump in. And good morning Simeon, thanks for your question. As it relates to North America, as we highlighted in our prepared remarks, the softness in North America is largely being driven by wholesale. And as the year went on, we saw continued softness in that channel, including at-once and replenishment wholesale orders. That's a big piece of the puzzle in North America. And then if you really particularly look at the holiday time frame, there was quite a lot of promotional activity that impacted our performance and others. As it relates to inventory, I'll turn it to Dave in a second, but our inventory continues to trend to be in a much better place. For Under Armour in the industry overall, I'd say, though, that doesn't necessarily mean there'll be no promotional activity that really ties to demand. So there's not always that one-to-one correlation. I think people think could be the case. So I think we're really, really excited about the game plan we have for North America. I'd highlight, again, Kara Trent coming back to lead that business. She has a great track record from her time in EMEA. Terrific leader, terrific relationship with wholesale partners, disciplined segmentation, great targeted marketing efforts that have been driving the brand in that part of the world. And we know she's going to bring those same skills and leadership back when she starts her role in about a week here in North America. So we're excited about the work underway and our efforts around marketing, product and distribution, which I'm sure we'll get into in -- further in the Q&A. But Dave, why don't you weigh in on inventory, that specific question?

當然。那我先開始，然後 Dave，我相信我們會開始。就北美而言，正如我們在準備好的發言中所強調的那樣，北美的疲軟主要是由批發業務推動的。隨著時間的推移，我們看到該管道持續疲軟，包括一次性和補貨批發訂單。這是北美難題中的一個大問題。如果你特別關注假期時段，你會發現有很多促銷活動對我們的業績和其他方面產生了影響。至於庫存，我馬上交給戴夫，但我們的庫存持續呈現更好的趨勢。不過，對於整個產業的 Under Armour 來說，我想說，這並不一定意味著不會有真正與需求相關的促銷活動。因此並非總是存在著一一對應的關係。我認為人們認為可能是這樣。所以我認為我們對北美的計劃感到非常非常興奮。我想再次強調，卡拉·特倫特將回來領導這項業務。她在歐洲、中東和非洲地區工作期間，取得了輝煌的表現。優秀的領導者、與批發合作夥伴的良好關係、嚴謹的市場區隔、出色的目標行銷努力，這些都推動了該品牌在該地區的發展。我們知道，大約一週後，當她在北美開始任職時，她將帶著同樣的技能和領導力回來。因此，我們對正在進行的工作以及我們在行銷、產品和分銷方面的努力感到非常興奮，我相信我們會在問答環節進一步討論這些內容。但是戴夫，你為什麼不考慮一下庫存這個具體問題呢？

Yes. I mean I think you covered the inventory pretty well in that the market, we think, is coming back to normalization at this point, maybe a little bit longer to go, but pretty close. However, we are still seeing a fairly promotional environment out there even with the inventory levels at the retailers in a lot better place. So I think the retailers are being fairly cautious and still really trying to keep clean after a year or two of obviously having more than they wanted. So we do see some of that promotional impact on gross margin continuing a little bit. And so you asked a little bit about freight and promotion relative to our assumptions on the full-year outlook or essentially Q4. And I would say that from a freight perspective, we've seen the rates normalize pretty well at this point, and they had really stopped with the big increase in our fiscal Q4 of last year. So when we think about Q4 of this fiscal year as we finish out the year, we're kind of at a more stabilized freight rate in Q4. So that's not going to be a huge tailwind for us in Q4. However, we are starting to work more deeply with our inventory vendors and have made a lot of progress on some of the costing initiatives there, which we're seeing some of that benefit favorably for Q4 of this year. And then I did mention relative to the promotion levels, we do anticipate it continuing to be more promotional than normal for a while here. And so we're continuing to expect that in our full year forecast as well.

是的。我的意思是，我認為你很好地覆蓋了庫存，我們認為市場目前正在恢復正常化，可能還需要一點時間，但已經很接近了。然而，即使零售商的庫存水準好了很多，我們仍然看到相當積極的促銷環境。因此，我認為零售商們相當謹慎，在經歷了一兩年明顯供大於求的局面之後，他們仍在努力保持清潔。因此，我們確實看到促銷對毛利率有一定的持續影響。因此，您詢問了一些有關貨運和促銷的問題，相對於我們對全年前景或第四季度的假設。我想說，從貨運角度來看，我們已經看到運費目前已相當正常化，而且隨著去年財年第四季的大幅成長，運費實際上已經停止了。因此，當我們考慮今年財年的第四季時，我們會發現第四季的運費更加穩定。所以這不會為我們第四季帶來巨大的順風。然而，我們開始與庫存供應商進行更深入的合作，並在一些成本核算措施上取得了很大進展，我們看到其中一些進展對今年第四季產生了有利影響。然後我確實提到過，相對於促銷水平，我們確實預計一段時間內促銷力度會比平時更大。因此，我們在全年預測中也繼續預期這一點。

Our next question comes from Jay Sole, UBS.

下一個問題來自瑞銀的傑伊·索爾 (Jay Sole)。

My question just a little bit on Europe. If you could just maybe touch on that business, how the wholesale channel there is looking if it's different than sort of the comments that you made about the U.S.? And then Stephanie, I'd love to hear a little bit more about the product innovation pipeline, what you see coming over the next couple of quarters and really into the Olympics perhaps. Would love to hear your view on that.

我的問題只是關於歐洲的。您能否談談該業務，那裡的批發管道情況如何，與您對美國的評論有何不同？然後史蒂芬妮，我很想聽聽更多關於產品創新管道的情況，以及您對未來幾季以及奧運期間產品創新管道的展望。很想聽聽你對此的看法。

Yes. Sure, of course. As it relates to EMEA, in Europe, we are -- that is -- continues to be a strong market for us. The brand is doing very well there. That being said, we mentioned this in the remarks, we're seeing a little bit of cooling there with the consumer, particularly in Eastern Europe and some of our distributor markets. But again, the European market, particularly in England and Spain and France, is very strong for us. Let me touch on product, and I'll let Dave jump in on Europe as well. But on the product side, I mean, we have a lot to be excited about. With Yassine just started last week, but we're super excited to have him as our new Chief Product Officer. And of course, as we've shared with you about 5 months ago, John Varvatos joined us as our new Chief Design Officer, and there's just a lot of exciting things happening on both the apparel side and the footwear side. So let me hit a couple of things that we're excited about on the apparel side. We continue to see a lot of traction with our Meridian product for women, where we're really winning with women is in legs -- or sorry, it's bottoms and tops and particularly with bras. We're having a lot of success there. I mentioned that we've got some exciting new things coming with our Unstoppable franchise that's really going to be terrific. And our core base layer really has some new upgrades in terms of fit and colorways and we're excited about that on the apparel side. On the footwear side, we have some real traction with Curry and the Curry 11, excited about what's happening with our running footwear, in particular, with our Velociti Elite and Infinite franchises. As a quick reminder, the Velociti Elite running shoe was worn by last year's New York City's Marathon winner, Sharon Lokedi. She wore again this year and came in third place with only a couple of seconds off the top spot, which is remarkable. So that Velociti running shoe is a real winner at the highest levels of performance and running. And then on the Infinite shoe, we've really reimagined the HOVR technology, which is incredible cushioning. And so we have a base, pro and elite level with that shoe really hitting that segmentation of good, better and best. So we're excited about that. But we're just getting started. Again, Yassine just started last week and we've got an amazing team here that's put -- has some great innovation pipeline, but we're excited to see what Yassine in partnership with the new head of footwear when he fills that position, that search is underway, and of course, with our design talent. So we're excited with what we've got in the product pipeline. I will say it's worth noting that it will take time, though. When we think about the product creation cycle in terms of any real mass of new product, I think we're looking at spring/summer 25-plus just given the product creation cycle that we're dealing with. But Dave, do you want to jump in with any additional color on Europe?

是的。當然。就 EMEA 而言，歐洲仍然是我們強大的市場。該品牌在那裡表現得非常好。話雖如此，我們在評論中提到了這一點，我們看到消費者的消費熱情有所降溫，特別是在東歐和我們的一些分銷商市場。但歐洲市場，特別是英國、西班牙和法國，對我們來說非常強大。讓我來談談產品，我也讓戴夫談談歐洲。但在產品方面，我們有很多值得興奮的事情。亞辛上週剛上任，但我們非常高興他能成為我們的新首席產品長。當然，正如我們五個月前與大家分享的那樣，約翰·瓦瓦托斯（John Varvatos）加入了我們，擔任我們的新首席設計官，服裝和鞋類方面都發生了很多令人興奮的事情。那麼，讓我來談談服裝方面令我們興奮的幾件事。我們持續看到 Meridian 女性產品受到廣泛關注，我們真正贏得女性青睞的是腿部產品——或者抱歉，是下裝和上裝，尤其是胸罩。我們在那裡取得了很多成功。我提到過，我們的《Unstoppable》系列即將推出一些令人興奮的新作品，它們真的會很棒。我們的核心基礎層在合身性和配色方面確實有了一些新的升級，我們對服裝方面的情況感到非常興奮。在鞋類方面，Curry 和 Curry 11 為我們帶來了一些關注，我們對於跑步鞋類，尤其是 Velociti Elite 和 Infinite 系列的銷售感到很興奮。簡單回顧一下，去年紐約馬拉松冠軍 Sharon Lokedi 穿的是 Velociti Elite 跑鞋。今年她再次穿上這身衣服，並獲得第三名，僅落後第一名幾秒，這非常了不起。因此，Velociti 跑鞋在最高性能和跑步水平上堪稱真正的贏家。然後在 Infinite 鞋款上，我們重新構想了 HOVR 技術，它具有令人難以置信的緩衝功能。因此，我們有基礎級、專業級和精英級的​​鞋子，而這款鞋子真正達到了好、更好和最好三個級別的劃分。我們對此感到很興奮。但我們才剛開始。再說一次，亞辛上週剛上任，我們這裡有一支出色的團隊，他們擁有一些很棒的創新管道，但我們很高興看到亞辛與新任鞋類主管合作，當他填補這個職位時，搜索正在進行中，當然，還有我們的設計人才。因此，我們對目前的產品線感到非常興奮。不過我要說的是，值得注意的是，這需要時間。當我們從任何實際大量新產品的角度考慮產品創造週期時，我認為，考慮到我們正在處理的產品創造週期，我們正在關注春季和夏季 25 多個產品。但是戴夫，你想對歐洲做一些更深入的介紹嗎？

I mean I think the only thing maybe that I would point out is we have a lot of strength moving forward in Europe, which is great to see. I think one of the points that is a little bit of pressure is just some of the Red Sea shipping disruptions do impact us a little bit there. And that is part of what went into our outlook tightening is that we see about a 1 point headwind from the Red Sea impacts, and that's primarily related to EMEA. And then obviously, there's some geopolitical challenges in that region as well that we're dealing with. So we're working through that. And that's really what I'm mentioning that 1 point headwind that's really talking about fourth quarter and how do we see it finishing out the year.

我的意思是，我想我唯一想指出的一點是，我們在歐洲前進的道路上擁有巨大的實力，這是令人高興的。我認為造成一點壓力的一點是紅海航運中斷確實對我們造成了一點影響。這是我們調整前景的部分原因，我們看到紅海影響帶來了約 1 點的逆風，這主要與 EMEA 有關。顯然，我們也正在應對該地區的一些地緣政治挑戰。所以我們正在努力解決這個問題。這就是我真正提到的 1 點逆風，實際上談論的是第四季度以及我們如何看待它在今年結束時的表現。

I'd add one more thing on the product side, just really quickly, I should have mentioned because it's getting a lot of traction is with our SlipSpeed Mega, which we did a soft launch at the UA All- American game, we did a soft launch there. We have a very cool activation at the Super Bowl this weekend, but the SlipSpeed Mega it's a very cool shoe that I think is really resonating with consumers. So that's another highlight on the footwear front.

在產品方面我想再補充一點，很簡單，我應該提一下，因為它得到了很多關注，那就是我們的 SlipSpeed Mega，我們在 UA All-American 比賽中進行了軟啟動，我們在那裡進行了軟啟動。我們本週末在超級盃上有一個非常酷的活動，但 SlipSpeed Mega 是一款非常酷的鞋子，我認為它確實引起了消費者的共鳴。這是鞋類方面的另一個亮點。

Our next question comes from Laurent Vasilescu, BNP Paribas.

下一個問題來自法國巴黎銀行的 Laurent Vasilescu。

I was hoping to drill down on North America wholesale. If possible, could you possibly quantify how down North America wholesale was for the quarter or just your expectations for the year, so the audience can better understand the dynamics within this channel. Are you starting to see -- are you starting to have conversations with North American retailers regarding restocking of inventories, particularly for the back half of 2024. And then just, Dave, on that point on the Red Sea, I understand there's some delays, but can you maybe just share with the audience how you -- how much you're contracted out? And when you renegotiate your contracts with the shipping merchants?

我希望深入了解北美批發市場。如果可能的話，您能否量化本季北美批發業務的下滑情況，或者只是您對今年的預期，以便觀眾更好地了解該頻道內的動態。您是否開始看到 - 您是否開始與北美零售商就補充庫存進行對話，特別是針對 2024 年下半年。當您與航運商重新協商合約？

Yes. So I guess a couple of things. North America wholesale is definitely a pressure point. We've talked about that. We've talked about kind of the softer orders as we saw coming in through fiscal '20 -- or fall/winter '23 and also a little bit relative to spring/summer '24. We haven't been quantifying the actual percentage for the channel within a region, but definitely is a pressure point, and we're continuing to see an experience where our DTC channels in North America are performing much better than where we are with wholesale. I think again, the retailers are being very cautious right now even though the inventory levels at retail are in a much better place. And that's why we're continuing to see some of the promotional levels as well. When you think about the Red Sea impacts, we are seeing some impacts there from shipping disruptions mainly impacting EMEA. The impact includes some increased shipping costs as well, not just some delays. And to kind of think about that, about 20% or so of our global apparel comes through that area, so it is meaningful to us. We're mitigating that through regional air freight, adjusted shipping lanes, differing forward buys, PO prioritization, et cetera. So -- and with all that, we don't really see any concerns with daily operations of our inventory vendors in that region. But again, we are estimating for Q4 about a 1 point revenue headwind because of the delays and mainly the impact on the EMEA region, and that's considered in our tightening of our outlook for the full year.

是的。因此我猜測有幾件事。北美批發絕對是一個壓力點。我們已經討論過這個了。我們談到了2020財年、2023年秋冬季以及2024年春夏季的訂單疲軟現象。我們還沒有量化某個區域內通路的實際百分比，但這肯定是一個壓力點，而且我們不斷看到這樣的一種經驗：我們在北美的 DTC 頻道表現比批發通路好得多。我再次認為，儘管零售店的庫存水準已經好得多，但零售商現在仍然非常謹慎。這就是為什麼我們繼續看到一些促銷等級。當您考慮紅海的影響時，我們會看到航運中斷對那裡造成的一些影響，主要影響歐洲、中東和非洲地區。其影響不僅是延誤，還包括運輸成本的增加。想想看，我們全球大約 20% 的服裝產自該地區，所以這對我們來說意義重大。我們正在透過區域空運、調整航線、不同的遠期購買、採購訂單優先順序等方式來緩解這個問題。因此，儘管如此，我們並沒有真正看到該地區庫存供應商的日常營運有任何問題。但同樣，由於延遲以及主要對 EMEA 地區的影響，我們估計第四季度的收入將面臨 1 個百分點的逆風，我們在收緊全年預期時已經考慮到了這一點。

Our next question comes from Robert Drbul, Guggenheim.

下一個問題來自古根漢的羅伯特‧德布爾 (Robert Drbul)。

Stephanie, just I guess, a bigger picture question for you, but you've made a significant amount of new hires, new leaders since last summer, when I look at the list and think about it Chief Design Officer, Supply Chain Product Officer in Americas. When you think about all these new leaders in the organization, how should we think about the time it will take for the organization to actually absorb the leadership changes, the impacts on the culture, the execution, eventual change and field of the years ahead?

史蒂芬妮，我想這對你來說是一個更大的問題，但自去年夏天以來，你已經招募了大量新員工，任命了新的領導者，當我看到名單並想到美洲的首席設計官和供應鏈產品官時。當您考慮組織中的所有這些新領導者時，我們應該如何考慮組織實際吸收領導層變化以及對文化、執行、最終變化和未來幾年領域的影響所需的時間？

During my first year, my top priority was building out the right team and to build out the right team to address some of the inconsistencies and challenges that we've had in the past. And you're right, there's been a lot of change. Let me just put a little more color around it. This is -- I've been in the job for about 11 months coming up on my first year. But since last summer, we filled the following jobs. Let me just tick through them quickly. Chief Consumer Officer, Jim Dausch, season Marriott executive, a lot of experience in products, marketing, sales and brand; a new Chief Communication Officer, Amanda Miller, came from PayPal, bringing us real PR horsepower; new Chief Design Officer, John Varvatos, great experience with his own company, Ralph Lauren, Calvin Klein, Converse; a new Chief Supply Chain Officer, Shawn Curran, a 30-year veteran at the Gap who was most recently the COO at Old Navy, but held various positions at that company over the years; a new Chief Product Officer Yassine Saidi, who started again last week, as I mentioned, coming from some powerhouse brands and most recently, owning his own company, so he's got that entrepreneurial spirit. A new President of the Americas just starting Kara Trent, industry and UA veteran. We talked about how spectacular she's going to be in her new role. I mentioned that Kevin Ross will backfill Kara and EMEA, a 25-year veteran of the industry knows UA, was with us for 9 years, but experienced at Taylor Made and Yeti in addition to Under Armour. We did also -- I didn't mention this, but in my remarks, we did hire a new SVP of direct-to-consumer for the Americas last summer too Josh Denton, who came -- Under Armour veteran, who came back to us, and we have an open CMO role and a new head of footwear that I covered in my prepared remarks. So when you put all that in the blender, that is a lot of change in roughly 6 months. What's terrific is, again, these executives who all have really incredible backgrounds have hit the ground running. I'm so excited to see how well they're working together. Interestingly, Yassine and Kara work together for close to 9 years at Puma. So to have the Head of North America and the Head of Product already have a deep working relationship between the two of them is terrific. Of course, when you think about executives like Kevin Ross and Josh Denton coming back, they know UA. So this team has hit the ground running, but they do need time to settle in, get their teams organized. I should underscore too, we have amazing talent at Under Armour already that these leaders are joining. Really deep experience, particularly in terms of performance apparel, performance footwear. So we've got a great team in Under Armour. We brought these critical new roles in. Most of when you think about it on a forward-facing part of the business. I put supply chain in there, too, because we can't get things to the right place at the right time they won't be delivered to the customer. It's got quite a lot of work underway on the supply chain front under Shawn's leadership. So it's going to take some time, but to get going, but I'm confident that we have the right team, we have the right strategy and we're firing on all cylinders. So I'm excited with the amount of progress we've made on the talent front in less than a year.

在我任職的第一年，我的首要任務是建立合適的團隊，並組建合適的團隊來解決我們過去遇到的一些不一致和挑戰。你說得對，確實發生了很多變化。讓我在其周圍添加一些顏色。這是——我從事這份工作已經大約 11 個月了，即將迎來我的第一年。但自去年夏天以來，我們已填補了以下職位。讓我快速地瀏覽一遍。首席消費者長Jim Dausch，萬豪酒店集團主管，在產品、行銷、銷售和品牌方面擁有豐富的經驗；來自 PayPal 的新任首席溝通官 Amanda Miller 為我們帶來了真正的公關力量；新任首席設計長 John Varvatos，擁有在自己的公司、Ralph Lauren、Calvin Klein、Converse 等公司的豐富經驗；新任首席供應鏈官肖恩·柯倫 (Shawn Curran)，他在 Gap 工作了 30 年，最近擔任 Old Navy 的首席營運官，但多年來在該公司擔任過各種職務；新任首席產品官亞辛·賽迪（Yassine Saidi）上週重新開始工作，正如我提到的那樣，他來自一些強大的品牌，最近擁有自己的公司，所以他具有創業精神。新任美洲區總裁 Kara Trent 剛上任，她是業界和 UA 資深人士。我們談論了她在新角色中將會有多麼出色。我提到凱文·羅斯將填補卡拉和 EMEA 的空缺，他是業內一名擁有 25 年經驗的資深人士，了解 UA，曾在我們公司工作 9 年，除了 Under Armour 之外，還曾在 Taylor Made 和 Yeti 工作過。我們也確實——我沒有提到這一點，但在我的發言中，我們確實在去年夏天聘請了一位新的美洲直接面向消費者的高級副總裁 Josh Denton，他來自 Under Armour 的老將，後來又回到了我們這裡，我們有一個空缺的 CMO 職位和一位新的鞋類主管，我在準備好的發言中已經提到過。所以當你把所有這些放進攪拌機時，大約 6 個月內就會發生很大的變化。令人驚訝的是，這些擁有真正令人難以置信的背景的高階主管已經開始積極行動。我很高興看到他們合作得如此順利。有趣的是，亞辛和卡拉在彪馬共事了近9年。因此，北美區主管和產品主管之間已經建立了深厚的工作關係，這真是太棒了。當然，當你想到像凱文·羅斯 (Kevin Ross) 和喬什·登頓 (Josh Denton) 這樣的高管回歸時，他們了解 UA。因此這支球隊已經開始行動了，但他們確實需要時間來適應並組織他們的團隊。我還要強調的是，在眾多領導者的加入下，Under Armour 已經擁有了令人驚嘆的人才。確實經驗豐富，特別是在性能服裝和性能鞋類方面。我們在 Under Armour 擁有一支出色的團隊。我們引入了這些重要的新角色。我也把供應鏈放在那裡，因為我們無法在正確的時間將貨物送到正確的地點，它們就無法交付給客戶。在肖恩的領導下，供應鏈方面已經進行了大量工作。所以這需要一些時間才能開始，但我相信我們擁有合適的團隊，有正確的策略，而且我們正在全力以赴。因此，我對我們在不到一年的時間內 我們在人才方面的進步感到非常興奮。

Our next question comes from Sam Poser, Williams Trading.

我們的下一個問題來自 Williams Trading 的 Sam Poser。

I've got 3, and I'm just going to read them all out. One, when we think forward, do we anticipate that the SG&A is going to go down? And then you mentioned the Olympics, is that going to be like pump up of investment sort of at the end of Q1 into Q2 of next year? And then two is, what's the base of -- like what's the base sales you look at for North America? Are we close to it? And then on product, it's like use of logo, you've got some good stuff going on with some of the Unstoppable apparel, the Fat Tire, the Forge 96, that really don't scream with the big UA logo and seem to be doing generally better than most out there of the non-Curry product. And I just wondered sort of directionally how you're thinking of logo use and stuff like that and maybe optimize -- exploiting some of those styles that are sort of quieter don't make the list that often, but appear to be -- have pretty good demand.

我有 3 個，我要把它們全部讀出來。首先，當我們展望未來時，我們是否預期銷售、一般及行政費用（SG&A）將會下降？然後您提到了奧運會，這是否會在明年第一季末到第二季引發投資熱潮？然後第二點是，基礎是什麼──比如，你所關注的北美基礎銷售額是多少？我們接近目標了嗎？然後在產品方面，就像標誌的使用一樣，一些 Unstoppable 服飾、Fat Tire、Forge 96 等都推出了一些不錯的產品，這些產品並沒有使用大大的 UA 標誌，而且似乎比大多數非 Curry 產品表現更好。我只是想知道，您對於徽標的使用和諸如此類的東西有什麼看法，也許可以進行優化——利用一些比較安靜的風格，這些風格並不經常出現在列表中，但似乎有相當好的需求。

Yes, Sam, this is Dave. I'll take your first 2 questions, and then maybe I'll hand off to Stephanie on the logo. Relative to SG&A and going forward, obviously, this is an area that we continue to focus on. We worked hard over the past few years to become more agile from a cost structure perspective. But we do have more work to do. We understand the areas of highest returns, and we're continuing to validate those and also understand where the best investments need to go. So this is a continual work in process. We continue to drive further savings within our hiring, our incentive comp, tightening up our marketing prioritization, spending, travel and entertainment, et cetera. And we're going to continue that work as we drive into next year. So could we drive SG&A lower? Potentially and that's our focus is to be able to be as optimized as possible, and we're going to keep working with that. Relative to North America, I think your question is, how we hit kind of base sales level for North America? And I would say that's kind of a loaded question because there's a lot of decisions within that. And we know that we want to be -- continue to strive to be more premium. We know that we want to make some right choices as far as backing off some of the deeper discounts, for example, on our on our website. So all of that goes into the blender as we think forward. And as we get to our May call, we'll be getting into much more details on kind of fiscal '25 and beyond. And then as far as you mentioned the Olympics relative to SG&A. And is that going to be a heavy investment? Obviously, we're going to activate some things around the Olympics, but it is not a large investment for us, so it shouldn't be a big pop in SG&A for us in any way. Stephanie, do you want to take the third point on logo.

是的，山姆，這是戴夫。我將回答您的前兩個問題，然後我可能會將有關徽標的問題交給史蒂芬妮。相對於銷售、一般及行政費用，展望未來，顯然這是我們將繼續關注的領域。過去幾年，我們努力從成本結構角度變得更敏捷。但我們確實還有更多工作要做。我們了解回報最高的領域，我們正在繼續驗證這些領域，同時也了解最佳投資應該去哪裡。所以這是一個持續進行的工作。我們將繼續在招募、激勵薪資、加強行銷優先順序、支出、差旅和娛樂等方面進一步節省開支。明年我們將繼續進行這項工作。那我們能降低銷售、一般及行政開支 (SG&A) 嗎？從潛力上來說，我們的重點是能夠盡可能地優化，我們將繼續為此努力。相對於北美，我想你的問題是，我們如何達到北美的基本銷售水準？我想說這是一個引導性問題，因為其中涉及很多決策。我們知道，我們想要繼續努力，成為更優質的企業。我們知道，我們希望在取消一些較大折扣方面做出一些正確的選擇，例如在我們的網站上。所以當我們展望未來時，所有這些都將被納入考慮之中。當我們召開 5 月電話會議時，我們會討論有關 25 財年及以後的更多細節。然後就您提到的奧運會與銷售、一般和行政費用的關係而言。這是否需要很大的投資？顯然，我們將在奧運會期間啟動一些項目，但這對我們來說並不是一項大投資，因此無論如何這都不會對我們的銷售、一般及行政開支造成太大的影響。史蒂芬妮，你想談談關於標誌的第三點嗎？

On the logo front, I mean, you highlighted some of our best-performing franchises when you mentioned Unstoppable, I'd put Meridian in their base layer. And I think our design teams always do a terrific job of finding the most appropriate and elegant and stylish way to place our logo and so we'll continue. That's in the very able hands of Yassine and John Varvatos as we think about logo treatment. I think there's a broader point I'd like to make, though, around where we're headed with Sportstyle because I think that, that is going to be a really important part of our story in the years to come.

在標誌方面，我的意思是，當您提到Unstoppable時，您強調了我們一些表現最好的特許經營權，我會將Meridian放在它們的基礎層中。我認為我們的設計團隊總是能找到最合適、最優雅、最時尚的方式來放置我們的標誌，所以我們會繼續這樣做。當我們考慮標誌處理時，這一切都在 Yassine 和 John Varvatos 的巧手之下。不過，我想就 Sportstyle 的未來發展方向談一個更廣泛的觀點，因為我認為這將成為未來幾年我們故事中非常重要的一部分。

And let me define Sportstyle again. We are not trying to be anything other than authentically Under Armour, and performance is in our DNA. It always will be. So for us, Sportstyle is that intersection of performance and style and they're inextricably linked. And I think what you'll see from us and we're thinking about Sportstyle is really more of an evolution versus a revolution. And we started with Phase 1, which is remerchandising and remarketing products to demonstrate kind of that nonactive use occasion. And some of the franchises you mentioned, Unstoppable, Meridian, would be great examples of where we have an opportunity where we have great, particularly on the apparel side, Sportstyle offerings, but we need to market them differently, and we're doing that.

讓我再定義一下 Sportstyle。我們不想成為任何其他人，我們只想做真正的 Under Armour，性能已融入我們的 DNA。它將永遠如此。所以對我們來說，運動風格是性能和風格的交匯，它們是密不可分的。我想，您從我們這裡看到的以及我們對 Sportstyle 的思考實際上更多的是一場進化，而不是一場革命。我們從第一階段開始，即重新銷售和再行銷產品，以展示非主動使用場合。您提到的一些特許經營權，Unstoppable、Meridian，就是很好的例子，說明我們擁有巨大的機遇，特別是在服裝方面，我們擁有出色的 Sportstyle 產品，但我們需要以不同的方式營銷它們，我們正在這樣做。

And then Phase 2 is really when we'll see more new product. We've already done some limited run capsules and some smaller collections or groupings of items. But again, it's not until spring/summer 25-plus where we think we'll see more mass in terms of new product, given the product creation cycle. But again, throughout all of that, our talented design teams will be figuring out the best way to place the Under Armour logo for maximum return. So again, we're excited. We're excited about where we're headed with product and including the best use of our logo.

然後在第二階段我們將會看到更多新產品。我們已經製作了一些限量版膠囊和一些較小的收藏品或物品組合。但是，考慮到產品創造週期，我們認為要到25年春夏季節才會看到更多新產品。但同樣，在這一切過程中，我們才華橫溢的設計團隊將找出放置 Under Armour 標誌的最佳方式，以獲得最大回報。因此我們再次感到非常興奮。我們對我們的產品的發展方向以及我們標誌的最佳用途感到非常興奮。

Just one last thing. I mean, the one thing about the logo is that like on the forge and some of these other ones, they are more -- they're there, but they're more discrete. So it makes the shoe more flexible rather than having the big Under Armour logo on the side of the shoe, which then makes it more active. Having it more discrete seems to -- would make it more style regardless of what the design of the shoe is or apparel for that matter.

還有最後一件事。我的意思是，關於標誌的一個特點是，就像在鍛造廠和其他一些標誌上一樣，它們更 - 它們在那裡，但它們更加謹慎。因此，它使鞋子更加靈活，而不是在鞋子的側面印上大大的 Under Armour 標誌，從而使鞋子更加活躍。讓它變得更加獨立似乎——無論鞋子或服裝的設計如何，都會讓它更加時尚。

Yes. Again, I think it depends on what's the particular item and what's its use. And so we'll continue to always be evolving and looking at the best way to -- like, I think, like all world-class brands, the best way to use our logo. But you gave an example with a couple of items where it was more less smaller, but I think we'll continue to evolve and work on that.

是的。再次強調，我認為這取決於具體物品是什麼以及它的用途。因此，我們將繼續不斷發展，尋找最佳方式——就像我認為的所有世界級品牌一樣，找到使用我們標誌的最佳方式。但你舉了幾個項目的例子，它們或多或少都比較小，但我認為我們會繼續改進並努力。

Our next question comes from Jim Duffy with Stifel.

下一個問題來自 Stifel 的 Jim Duffy。

Stephanie, prepared remarks and comments are fairly deliberate about your subdued expectations for the North American marketplace, the timing for inflection. Can you give us some perspective on what you're hearing in your discussions with wholesale partners? What are their forward thoughts on consumer spending behavior what's the messaging on subdued orders despite what seems to be pretty well managed channel inventories? What are they asking of Under Armour at this point? And then I have a question on D2C.

史蒂芬妮，準備好的評論和評論是相當慎重地考慮了你對北美市場低迷的預期和轉折點的時機。您能否就與批發合作夥伴的討論中聽到的情況給我們一些看法？他們對消費者支出行為的前瞻性想法是什麼？他們現在對 Under Armour 有什麼要求呢？我有一個關於 D2C 的問題。

Yes, I'll start, and then I'll kick it over to Dave to add his perspective. And when we talked about the pressure that we're seeing in North America this year. And as we think about heading into fiscal year '25, I think we can see some anticipated continued bumpiness when I think about the fall/winter '23 order book that, of course, has an impact on the order book coming up. I should note, we're in the middle of it right now. So we're not going to comment on fiscal year '25 in any detail today. But I think it's fair to say for the first part of the year, we'll see some continued bumpiness. Dave can jump in on that. But I think what we're working very, very closely with our wholesale partners to make sure that we have the right assortment and we are continuing to work with our wholesale partners as we deliver more better and best products to make sure that we get those better and best products on their shelves. And so there -- our wholesale partners are incredibly important to us. When I think about our strategy on that side of the house, it really is all about getting more shelf space and better product in our existing partners, but then opening new doors of distribution too on the wholesale side. And that ties to having new product offerings. So that is an important part of our business. I think, again, with -- and particularly in North America with Kara, coming back to lead our charge there. She has tremendous relationships with wholesale partners. I think that's going to just further bolster our success in this area. But I know you had a question on D2C, but let me let Dave jump in on wholesale, if he wants to add any other information...

是的，我先開始，然後我會把它交給戴夫來補充他的觀點。當我們談到今年北美面臨的壓力時。當我們考慮進入25財年時，我認為，當我們想到23年秋冬季的訂單時，我們可以看到一些預期的持續坎坷，這當然會對即將到來的訂單產生影響。我應該指出，我們現在正處於其中。因此我們今天不會對 25 財年發表任何詳細評論。但我認為，可以公平地說，今年上半年我們仍將看到一些坎坷。戴夫可以參與其中。但我認為，我們正在與批發合作夥伴密切合作，以確保我們擁有正確的產品組合，並且我們將繼續與批發合作夥伴合作，提供更多更好、最好的產品，以確保我們能將這些更好、最好的產品擺上他們的貨架。所以我們的批發合作夥伴對我們來說非常重要。當我思考我們在這方面的策略時，它實際上就是在現有合作夥伴那裡獲得更多的貨架空間和更好的產品，然後在批發方面也打開新的分銷大門。這與新產品的供應有關。這是我們業務的重要組成部分。我認為，特別是在北美，卡拉將回來領導我們在那裡的工作。她與批發合作夥伴保持著良好的關係。我認為這將進一步增強我們在這一領域的成功。但我知道您對 D2C 有疑問，但如果 Dave 想添加任何其他信息，請讓我讓他加入批發討論...

Yes. I mean, I think we've talked, as Stephanie mentioned around kind of the environment and the continued discounting, which is a little bit of a headwind. I would say the other thing is we're kind of finishing out the year moving into next year is, again, we are looking to try and push harder into more premium distribution. We've got some good early reads on mall penetration and new doors there, which is good. And then also, we're going to continue to edit and improve our segmentation as well as we move into next year. But again, it is a little bit bumpy out there still, and it's still a pretty promotional environment.

是的。我的意思是，我想我們已經談過了，正如史蒂芬妮提到的環境和持續的折扣，這有點不利。我想說的另一件事是，我們即將結束今年的歲月，進入明年，我們再次尋求嘗試並更加努力地推進更優質的分銷。我們對購物中心的滲透率和新門市的開設有一些很好的早期了解，這是很好的。然後，我們也將在明年繼續編輯和改進我們的細分。但是，儘管如此，那裡的情況仍然有點坎坷，但仍然是一個很好的促銷環境。

Then just quickly on the D2C. You spoke to your intent to be less promotional in North America D2C that seems to suggest you're planning for declines in fiscal '25, lapping more promotional comparison fiscal '24. Is that a fair assessment?

然後快速進入 D2C。您曾說過打算減少在北美 D2C 的促銷，這似乎表明您計劃在 25 財年出現下滑，並在 24 財年進行更多的促銷對比。這是一個公平的評價嗎？

Yes. So Jim, we're not going to get into details on fiscal '25 yet, but I will say as it relates to our own D2C channels. Let me start with our website and our shop app. We've made a lot of progress on the functional side of that channel, things like improving mobile speed to better search algorithms, upgrading product description pages, et cetera. So there's been a lot of great work done on improving conversion and having a more functional website and shop app. At the same time, and I think this is where you're headed, we do have plans to reduce our dependence on promotions. We need for ua.com and our shop app to be the most premium expression of our company. It's our largest storefront when you think about it. So we are going to reduce our dependency on promotions. Could that have some reduction in revenue? Yes, it could. But at the same time, it will lift ASPs, it will drive profitability and it will lead to a much better, more premium experience for our customers. So that's one piece of the D2C channel.

是的。所以吉姆，我們暫時還不會詳細討論 25 財年的細節，但我會說它與我們自己的 D2C 頻道有關。讓我從我們的網站和商店應用程式開始。我們在該管道的功能方面取得了很大進展，例如提高行動速度、改進搜尋演算法、升級產品描述頁面等等。因此，我們在提高轉換率和擁有更具功能性的網站和商店應用程式方面已經做了大量出色的工作。同時，我認為這就是你們的目標，我們確實計劃減少對促銷的依賴。我們需要 ua.com 和我們的商店應用程式成為我們公司最優質的體現。想想看，這是我們最大的店面。因此，我們將減少對促銷的依賴。這會導致收入減少嗎？是的，可以。但同時，它將提高平均售價，提高獲利能力，並為我們的客戶帶來更好、更優質的體驗。這是 D2C 頻道的一部分。

The other part is our stores, our physical stores. I mentioned this in my prepared remarks that we have a great effort underway to reimagine the Under Armour brand health of the future, a smaller store format, curated with more premium offerings and easier to shop experience. We're going to be piloting new concept later this year with a goal to roll out more full-price brand houses in the years ahead. We know that our ratio of factory to full price brand houses is not where we want it. So there's a lot of effort underway to think about our physical space as well. And we all know that the -- those two are inextricably linked, meaning the physical and the digital. So we've got a lot of great work underway on the direct-to-consumer front, as it relates to the future.

另一部分是我們的商店，我們的實體店。我在準備好的演講中提到過，我們正在努力重新構想未來的 Under Armour 品牌健康狀態，即更小的門市形式、提供更多優質產品和更便捷的購物體驗。我們將在今年稍後試行新概念，目標是在未來幾年內推出更多全價品牌店。我們知道，我們的工廠與全價品牌店的比例還未達到我們想要的水平。因此，我們也在努力思考物理空間。我們都知道，實體和數位兩者是密不可分的。因此，我們在直接面向消費者方面已經開展了大量出色的工作，因為這與未來息息相關。

Our next question comes from Tom Nikic, Wedbush. (Operator Instructions) Our next question comes from Paul Lejuez with Citi.

下一個問題來自韋德布希的湯姆·尼基奇 (Tom Nikic)。 （操作員指示）我們的下一個問題來自花旗銀行的 Paul Lejuez。

This is Kelly on for Paul. I just wanted to dig in a little bit more on the gross margin. It looks like you're guiding up 200 basis points or so in the fourth quarter and you mentioned some costing initiatives. Just wondering if you could elaborate on that. And if there's any sort of raw material deflation that is benefiting you guys and whether that can continue into F '25? And then on the freight side, while it's no longer going to be a benefit, is there any chance with some of the Red Sea pressures that freight could become a headwind to the gross margin in the next 12 months based on what you're seeing today?

這是凱莉 (Kelly) 取代保羅 (Paul)。我只是想進一步深入了解毛利率。看起來您預計第四季度利率將上漲 200 個基點左右，並且您提到了一些成本核算舉措。只是想知道您是否可以詳細說明這一點。如果出現任何類型的原料通貨緊縮對你們有利，這種情況是否會持續到 F'25？那麼在貨運方面，雖然它不再是一個好處，但根據您今天看到的情況，在紅海壓力的影響下，貨運是否有可能成為未來 12 個月毛利率的阻力？

Yes. Kelly, this is Dave. Relative to Q4, there are definitely a few puts and takes that we're seeing there. We do expect some continued supply chain benefits in Q4. And that's -- but that's shifting a little bit more towards the product costing initiatives that we're working on with our vendors that we're going to starting to see those benefits in this Q4 and then looking to see full year benefits next year. The freight component, obviously, we saw pretty substantial tailwinds in Q1, Q2 and Q3 of this year. But again, those have kind of normalized for Q4, so not as much of an increase year-over-year for Q4. Now to your point, relative to the Red Sea, we are seeing some increased shipping costs, but we're probably in the neighborhood of $1 million or $2 million there, not something that is significant at this point. So we're managing through that and that's all considered in our tightened outlook as well. And then a couple of the things that are going to be a little bit of headwinds for Q4, we do believe that the kind of promotional environment is going to continue a little bit longer. So that's assumed in our Q4 as a headwind and potentially a little bit of FX pressure. So those are kind of the main puts and takes as we think about Q4.

是的。凱利，這是戴夫。相對於第四季度，我們確實看到了一些利弊。我們確實預計第四季供應鏈將繼續受益。那是 — — 但這更多地轉向了我們正在與供應商合作開展的產品成本計劃，我們將在第四季度開始看到這些好處，然後期待明年全年看到好處。顯然，就貨運部分而言，我們在今年第一季、第二季和第三季看到了相當強勁的順風。但這些在第四季已經恢復正常，因此與去年同期相比，第四季的增幅並不大。現在回到您的問題，相對於紅海，我們看到運輸成本增加，但大概在 100 萬美元或 200 萬美元左右，目前這並不是什麼大事。所以我們正在解決這個問題，而且這也在我們收緊的前景中考慮到了。然後，對於第四季來說，有幾個因素會有些阻力，我們確實相信這種促銷環境將會持續一段時間。因此，我們假設這在第四季度是一個阻力，並且可能會帶來一點外匯壓力。所以這些就是我們對第四季的看法。

Got it. And just lastly for me. Any way to quantify or could you quantify for us the percentage of your off-price sales this year, particularly within North America and how that's trending relative to historical?

知道了。對我來說這是最後一個了。有什麼方法可以量化，或者您能否量化今年您折扣銷售的百分比，特別是在北美，以及相對於歷史趨勢如何？

Yes. We've worked really hard over the last few years to really get our inventory management into a good spot and manage the off-price channel in what we feel is a pretty healthy range. And so we were targeting in the 3% to 4% of global mix of third-party liquidations and that's generally where we're running. In fact, as we finish out this year -- this fiscal year, we'll probably be at the lower end of that, 3% to 4% total mix. Relative to North America, it's not that different, but we don't really get into the mix per region per se.

是的。過去幾年來，我們一直非常努力地將庫存管理調整到良好的狀態，並將折扣管道管理在我們認為相當健康的範圍內。因此，我們的目標是全球第三方清算份額的 3% 到 4%，基本上就是我們的經營範圍。事實上，當我們結束今年——本財政年度時，我們的整體組合可能會處於這個數字的較低水平，即 3% 到 4%。相對於北美，情況並沒有什麼不同，但我們實際上並沒有進入每個地區的混合範圍。

Our next question comes Alex Straton with Morgan Stanley.

我們的下一個問題來自摩根士丹利的亞歷克斯·斯特拉頓。

This will be our last question -- so Alex, I'm just going to let everybody know this going to be the last question, so I appreciate it. But go ahead, Alex.

這將是我們的最後一個問題——所以亞歷克斯，我只是想讓大家知道這將是最後一個問題，所以我很感激。但繼續吧，亞歷克斯。

So Stephanie, you noted a lot of leadership changes. I just want to drill down on kind of how you think about when they can start to have an impact on the P&L from a time line perspective? And then also, in the meantime, as understanding that can't be done immediately. What are the KPIs in your view that you're watching that we should be watching for signs of some of these initiatives flowing through?

史蒂芬妮，你注意到了很多領導的變化。我只是想深入了解一下，從時間軸的角度來看，您認為它們何時會開始對損益表產生影響？同時，我們也了解到有些事情是無法立即做到的。您認為我們正在關注的 KPI 是什麼？

Sure, of course. Well, these leaders have hit the ground running. So I think they're impacting the business right away. I don't want to tick through each one of them again, but for example, I use John Varvatos is just as an example. He's been here 5 months. On day 1, he started looking at things like fit, finish, trim, color. So we're seeing the leaders have an impact on day 1, but it will take time in terms of bigger, broader impact across the business.

當然。嗯，這些領導人已經開始行動了。所以我認為它們正在立即對業務產生影響。我不想再次逐一列舉，但例如，我使用 John Varvatos 只是作為例子。他來這裡已經 5 個月了。第一天，他開始關注合身度、飾面、裝飾、顏色等。因此，我們看到領導者在第一天就產生了影響，但要對整個業務產生更大、更廣泛的影響則需要時間。

In terms of the KPIs that we're going to be looking at I mean it depends on the area, but let me hit on some that we're really focused on. In terms of the the consumer and margin KPIs, we are constantly keeping an eye on our loyalty, our UA rewards sign-ups equally important activations. I mean, the loyalty program will be the backbone of our consumer strategy. It's all about customer acquisition and all about customer activation. And I mentioned some of the good progress we're having there in terms of not only sign-ups, but increased spend from our loyalty members.

就我們將要關注的 KPI 而言，這取決於領域，但讓我來談談一些我們真正關注的領域。就消費者和利潤 KPI 而言，我們始終關注我們的忠誠度、我們的 UA 獎勵註冊和同樣重要的激活。我的意思是，忠誠度計劃將成為我們消費者策略的支柱。這一切都是為了獲取客戶和激活客戶。我提到了我們在這方面取得的一些良好進展，不僅包括註冊人數，還包括忠誠會員的消費增加。

And then on the marketing front, there's all sorts of leading and lagging indicators that we'll be looking at, and I'm sure over the course of our time with you sharing updates on things like search demand. I mentioned in my prepared remarks, some of the progress we're having with social media. We've really changed our marketing approach to be more product focused, more digital, social, always on, that's where the consumer is. And so we're always looking at the metrics on that critical marketing channel, NPS scores, increased earned media, then we'll be looking at more lagging indicators as we move forward, increased full price sales, faster sell-through of our key franchises. As we open more doors, further doors of distribution, getting into more specialty retail, seeing things like more UA sold on the aftermarket. So there's a lot of consumer metrics both leading and lagging KPIs that we'll be looking at.

然後在行銷方面，我們將關注各種領先和滯後指標，我相信在我們與您分享搜尋需求等方面的最新動態的過程中。我在準備好的發言中提到了我們在社群媒體方面取得的一些進展。我們確實改變了我們的行銷方式，更加重視產品、更加數位化、社交化、永遠在線，這就是消費者所在的地方。因此，我們始終專注於關鍵行銷管道的指標、NPS 分數、增加的贏得媒體，然後，隨著我們前進，我們將專注於更多的滯後指標、增加全價銷售額、加快主要特許經營權的銷售速度。隨著我們打開更多的大門，更多的分銷管道，進入更多的專業零售，看到更多的 UA 在售後市場上銷售。因此，我們將關注許多消費者指標，包括領先和落後的 KPI。

Then we have made a lot of good progress over the past couple of years on supply chain, but this is where we still have more work to do. So we're focused on -- Dave touched on this, our cost of goods sold, SKU rationalization, better segmentation that will lead to ASP expansion. We'll be sharing more with you on our priority investments and the results there. So there's a whole host of KPIs and metrics across the business that we will be focused on and tracking and sharing with you is early indicators of how we're making progress along the way. Although -- I'll end where I started with, which is my excitement about the team we've built here, we have brought in some set fantastic executives to join our already fantastic team at Under Armour. So I couldn't be more excited and more thrilled with the team we're building here and our future. We've got a lot of great stuff underway. So thanks for your question.

過去幾年我們在供應鏈方面取得了很大進展，但在這方面我們還有許多工作要做。因此，我們專注於——戴夫談到了這一點，我們的銷售成本、SKU 合理化、更好的細分，這將導致 ASP 擴展。我們將與您分享更多有關我們的優先投資及其成果的資訊。因此，我們將重點關注、追蹤和與您分享整個業務中的一系列 KPI 和指標，這些是我們在過程中取得進展的早期指標。不過——我將以我開始的方式結束演講，我對我們在這裡建立的團隊感到興奮，我們已經引進了一些非常出色的高管來加入 Under Armour 原本就非常出色的團隊。因此，我對我們在這裡建立的團隊和我們的未來感到無比興奮和興奮。我們正在進行很多偉大的事情。感謝您的提問。

Our teams on the field.

我們的隊伍在球場上。

Our teams on the field. That's right.

我們的隊伍在球場上。這是正確的。

Thank you for attending today's call for Under Armour third quarter of fiscal 2024. This now concludes today's call. Have a great day.

感謝您參加今天的 Under Armour 2024 財年第三季電話會議。祝你有美好的一天。