Unifi Inc (UFI) 2024 Q3 法說會逐字稿

Good morning, and thank you for attending Unifi's third quarter fiscal 2024 earnings conference call. Today's conference is being recorded. (Operator Instructions) Your hosts for today's call include Al Carey, Executive Chairman; Eddie Ingle, Chief Executive Officer; A.J. Eaker, Chief Financial Officer.

早安，感謝各位參加 Unifi 2024 財年第三季財報電話會議。今天的會議正在錄影。（操作員說明）今天電話會議的主持人包括：執行主席艾爾·凱裡；首席執行官埃迪·英格爾；首席財務官A·J·伊克。

During the call, management will be referencing a webcast presentation that can be found in the Investor Relations section of unifi.com. Please familiarize yourself with page 2 of that slide deck for cautionary statements and non-GAAP measures. I will now turn the call over to Al Carey. Al?

在電話會議期間，管理層將提及一份網路直播演示文稿，該演示文稿可在unifi.com網站的投資者關係版塊找到。請仔細閱讀此簡報的第二頁，以了解相關的警示性聲明和非GAAP財務指標。現在我將把通話轉給艾爾·凱裡。艾爾？

Thank you very much. Good morning, everybody, and thanks for joining our call. I'll make a few general comments and turn it over to Eddie Ingle for his review of the third quarter business and then AJ to review the financials.

非常感謝。各位早安，感謝各位參加我們的電話會議。我將作一些整體評論，然後交給 Eddie Ingle 對第三季業務進行回顧，再交給 AJ 對財務狀況進行回顧。

So if you look at our third quarter results, they're right about where we forecasted. I wouldn't say that we're happy with these results, but they are definitely improved over the prior quarter and we expect the results will continue to improve.

所以，如果你看一下我們第三季的業績，你會發現它跟我們預測的差不多。我不會說我們對這些結果感到滿意，但它們肯定比上一季有所改善，我們預計結果會繼續改善。

So if you looking at our quarter three revenues that are almost 10% greater than quarter two and the EBITDA is $5 million better than the last quarter, quarter two. So I believe that we've hit bottom in quarter one and quarter two and will go up from here. I'm also encouraged that our quarter four first estimate is that the business should be better than Q3, and it will also be better than prior year.

因此，如果您看一下我們第三季的收入，它比第二季成長了近 10%，而 EBITDA 比上一季（第二季）增加了 500 萬美元。所以我認為我們已經在第一季和第二季觸底反彈，接下來將會向上發展。令我感到鼓舞的是，我們對第四季的初步預測是，業務狀況應該會好於第三季度，也會比去年同期好。

I guess the best way to describe the business right now is that our industry sales are coming back, but still very slow, but definitely improving. That's what we're hearing from most of our customers and our partners. They're all saying about the same thing, but they also were saying that inventories are no longer the issue that whole issue of restocking and inventory backups, we don't believe that's an issue anymore, but we are seeing conservative ordering for the business based on cash management and some fears about soft overall consumer trends.

我認為目前描述業務狀況的最佳方式是：我們行業的銷售額正在恢復，但速度仍然很慢，但肯定在改善。這是我們大多數客戶和合作夥伴都反映出來的情況。他們說的都差不多，但他們也說庫存不再是問題了，補貨和庫存積壓的問題，我們認為這不再是問題了，但我們看到，由於現金管理以及對整體消費趨勢疲軟的擔憂，企業訂貨比較保守。

But overall, opening up green shoots are being seen. We have several developments at Unifi and they give me optimism about our ability to grow our sales and profits as we progress into the next few quarters. The first one is that we're seeing market share gains in both North America and Brazil due to a consolidating competitive set. Our largest competitor in both markets, both Brazil and North America have ceased operations, and that's helping our business.

但總體而言，已經出現了復甦的跡象。Unifi 目前有多項進展，這讓我對我們未來幾季的銷售額和利潤成長能力充滿信心。首先，由於競爭格局的整合，我們在北美和巴西的市佔率均有所成長。我們在巴西和北美這兩個市場上的最大競爭對手都已停止運營，這對我們的業務有所幫助。

The second thing is we've successfully taken out costs in North America that definitely will improve our profitability, the people moves are complete, several severance costs might linger into the next quarter or two. Third, our sales transformation efforts are improving our profit margins in North America with efficiencies and execution benefits, especially in the management of inventories. And you'll hear more about that in a little bit.

第二件事是，我們已經成功削減了北美地區的成本，這肯定會提高我們的盈利能力，人員調動已經完成，一些遣散費可能會持續到接下來的一兩個季度。第三，我們的銷售轉型努力提高了我們在北美的利潤率，提高了效率和執行力，尤其是在庫存管理方面。稍後你會聽到更多相關內容。

Fourth, we have begun to get traction on business categories that are outside of apparel. And we also have made progress on developing innovation for REPREVE, particularly on a circularity idea. And then the final item I'd mention that gives me optimism is the new leadership team that's been put in place under Eddie is doing a very good job at working together collaboratively to making things happen and they're very results-oriented. I'm very proud of them and proud of the results they've made in the last 60 to 90 days.

第四，我們在服裝以外的商業類別中已經開始取得進展。此外，我們在 REPREVE 的創新開發方面也取得了進展，尤其是在循環經濟理念方面。最後，讓我感到樂觀的是，在艾迪領導下組建的新領導團隊在協作做事方面做得非常出色，他們非常注重結果。我為他們感到非常自豪，也為他們在過去 60 到 90 天裡取得的成績感到非常自豪。

So in summary, we'd like to see the business, the base business come back faster. While we are definitely making progress and we expect to improve our business results in quarter four and into the upcoming new fiscal year that begins in July.

總而言之，我們希望看到業務，尤其是基礎業務，能夠更快地恢復。雖然我們確實取得了進展，並且我們預計在第四季度以及即將到來的7月開始的新財年中，我們的業務業績將會有所改善。

So with that, let me turn the presentation over to our CEO, Eddie Ingle.

那麼，接下來就交給我們的執行長艾迪英格爾來做示範吧。

Thanks, Al, and good morning, everyone. As Al just highlighted, our third quarter fiscal 2024 results were in line with our expectations as we continue to see month-to-month improvements in our financial results following what we believe was really the bottom of the apparel inventory destocking in December. And looking ahead, we continue to remain cautiously optimistic that we will begin to see more normalized demand environment in the apparel industry as we move through the calendar 2024.

謝謝你，艾爾，大家早安。正如 Al 剛才強調的那樣，我們 2024 財年第三季的業績符合預期，因為我們認為 12 月份服裝庫存去庫存已經觸底，此後我們的財務業績持續逐月改善。展望未來，我們仍保持謹慎樂觀的態度，認為隨著 2024 年的到來，服裝業的需求環境將開始趨於正常化。

Turning now to slide 4 for an overview of the quarter. During the third quarter of fiscal 2024, we recorded $149 million in consolidated net sales, which was up 9% compared to the second quarter of fiscal 2024. And this overall increase in net sales during the quarter was driven primarily by continued improvement in the overall market and the initial results of the market share gain as our sales transformation initiatives begin to take hold.

現在請看第 4 張投影片，了解本季概況。在 2024 財年第三季度，我們錄得合併淨銷售額 1.49 億美元，比 2024 財年第二季成長 9%。本季淨銷售額的整體成長主要得益於整體市場的持續改善以及隨著我們的銷售轉型計劃開始奏效，市場份額增長的初步成果。

Our cost reset efforts are also beginning to show in our bottom line, and we saw solid gross margin improvement sequentially. We are happy to see some of the initial success, and we remain on track to reduce expenses by $2.5 million per quarter by the start of fiscal 2025.

我們的成本調整措施也開始在利潤上顯現成效，毛利率較上月穩定提升。我們很高興看到一些初步的成功，我們仍然預計在 2025 財年開始時，每季減少 250 萬美元的開支。

As for our sales transformation efforts, we have been making great progress in streamlining our sales process, improving our inventory management and realigning our resources to maximize efficiencies in our current operating environment.

至於我們的銷售轉型工作，我們在簡化銷售流程、改善庫存管理和重新調整資源方面取得了巨大進展，以最大限度地提高當前營運環境的效率。

Some of the initial success in our sales transformation include gaining additional market share from our competitors and successfully reducing our inventory in the US will help growing revenues at the same time. This gives us great confidence that we remain on track to see a $6 million annual improvement in our gross profit as a result of our sales transformation once the profitability improvement plan is completed, which is expected to occur by the end of this fiscal year.

我們在銷售轉型方面取得的一些初步成功包括從競爭對手那裡獲得更多市場份額，以及成功減少我們在美國的庫存，這將有助於同時增加收入。這讓我們非常有信心，一旦獲利能力提升計劃完成（預計將在本財年結束前完成），我們的銷售轉型將使我們的毛利每年增加 600 萬美元。

I'll now provide a brief update on each of our business segments. In the America segment, we are seeing a modest and encouraging improvement in our volumes. We attribute part of this growth to our team capturing market share in the region as a result of a competitor that we previously mentioned exiting market. We are also highly encouraged by the growing morale we are hearing from customers as they look forward to the upcoming quarters.

接下來我將簡要介紹我們各個業務部門的最新情況。在美洲市場，我們的銷量出現了小幅但令人鼓舞的成長。我們認為，部分成長歸功於我們團隊在該地區奪取了市場份額，而這又是由於我們之前提到的競爭對手退出了市場。我們也深受鼓舞，因為客戶對即將到來的幾季充滿期待，士氣日益高漲。

In our Brazil segment, performance has continued to improve and our market share in that region has increased from 12% to 18% over the last several quarters. We are pleased that we've been able to gain market share in Brazil despite continuing unfavorable pricing dynamics from competitive imports. While the pressures we are experiencing from competitive imports remain in the near term, we continue to remain confident in our competitive local supply chain position in the Brazilian market.

在巴西市場，我們的業績持續改善，過去幾季我們在該地區的市佔率已從 12% 成長到 18%。儘管面臨來自進口競爭產品的持續不利價格情勢，我們仍然很高興能夠在巴西獲得市場份額。儘管短期內我們仍將面臨來自進口競爭的壓力，但我們對自己在巴西市場的本地供應鏈競爭力依然充滿信心。

We anticipate that we'll begin to see the full impact of our increased market share in both the Americans and Brazil segments in our financial results as we move into fiscal 2025.

我們預計，隨著我們進入 2025 財年，我們在美洲和巴西市場份額的增加將對我們的財務表現產生全面影響。

In Asia, we are seeing signs of a consistent recovery and as is the norm, our results in the region were impacted by the Chinese New Year in February, when evaluating the segments on a sequential basis. We have a number of proactive initiatives in process in Asia and we believe will help us accelerate growth in the late calendar 2024 and 2025, as we look forward to sharing those down the road.

在亞洲，我們看到了持續復甦的跡象，但與往常一樣，我們在該地區的業績在2月份受到中國新年的影響，這是按季度評估各業務板塊時得出的結論。我們在亞洲正在推動多項積極舉措，我們相信這些舉措將有助於我們在 2024 年末和 2025 年加速成長，我們期待在未來與大家分享這些舉措。

Turning now to slide 5 for an update on REPREVE. During the quarter, REPREVE represented 31% of sales a 6% decrease compared to the second quarter that was driven primarily by the typical seasonal impact of the Chinese New Year. Despite experiencing decline in the percentage of net sales were pre-sales did actually increased by $1.1 million on a sequential basis. Looking ahead, we believe that we will see an improvement in REPREVE sales due to both demand for the brand and its position as a leader in the branded sustainable performance fibers market.

現在請翻到第 5 張投影片，了解 REPREVE 的最新進展。本季度，REPREVE 佔銷售額的 31%，比第二季度下降了 6%，這主要是由於中國新年的典型季節性影響。儘管淨銷售額佔預售額的比例有所下降，但實際上環比增長了 110 萬美元。展望未來，我們相信，由於市場對該品牌的需求以及其在品牌永續高性能纖維市場的領導地位，REPREVE 的銷售額將會提高。

Turning now to slide 6. In late February, we released our Sustainability Snapshot that shares impactful updates on our innovative, sustainable mission, weight reduction achievements and future growth. Included in the reports was the debut of our pioneering T-shirt equivalent metric in which we set ambitious textiles to textile recycling targets to transform the equivalent of 1.5 billion T-shirts worth of textile non-res into new products by fiscal 2030.

現在請看第6張投影片。2 月下旬，我們發布了永續發展概覽，分享了我們在創新、永續使命、減重成就和未來發展方面的重要最新進展。報告中包含了我們首創的 T 卹當量指標，我們設定了雄心勃勃的紡織品回收目標，目標是在 2030 財年之前將價值相當於 15 億件 T 恤的紡織品廢料轉化為新產品。

In addition to this target, the Sustainability Snapshot also included several other goals, such as our target of reducing our Scope one and two greenhouse gas emissions by 30% by 2030.

除了這個目標外，《永續發展概況》還包括其他幾個目標，例如到 2030 年將範圍一和範圍二的溫室氣體排放量減少 30% 的目標。

Turning now to slide 7 for an update on our marketing efforts, we continue to dedicate resources to boost the presence and reach of our premium brand REPREVE and additional performance technologies.

現在請看第 7 張投影片，了解我們行銷工作的最新進展。我們將持續投入資源，提升我們高端品牌 REPREVE 和其他性能技術的知名度和影響力。

The highlights of our third quarter was our successful execution of the collaboration with Peter Millar & WM at the 2024 WM Phoenix Open. The WM Phoenix Open is one of the most sustainable large-scale golf events in the world and collects all of the PET bottles at the events pre was showcased in a special edition apparel collection made from recycled bottles used to create three custom styled Peter Millar apparel items that were sold at the tournament in February.

第三季的亮點是我們與 Peter Millar 和 WM 成功合作，舉辦了 2024 年 WM 鳳凰城公開賽。WM 鳳凰城公開賽是世界上最具永續性的大型高爾夫賽事之一，賽事期間會收集所有 PET 瓶。在 2 月的比賽中，Peter Millar 特別推出了一款特別版服裝系列，該系列採用回收瓶製成，打造了三款定製款式的服裝。

The collaboration was covered nationally on television, digital and print media and social platforms generated over 200 million impressions and this was an exciting collaboration for Unifi to be part of and really helped highlight the important role our company is taking in a circular economy, which is about taking what might be a waste product. I'm turning it into something useful.

此次合作在全國各地透過電視、數位媒體、印刷媒體和社交平台進行了報道，產生了超過 2 億次的曝光量。對 Unifi 來說，能夠參與這次合作是一次令人興奮的經歷，也真正有助於凸顯我們公司在循環經濟中發揮的重要作用，循環經濟的核心在於將原本可能是廢棄物的東西轉化為可利用的資源。我要把它變成有用的東西。

Turning to slide 8. Later this month, we will be hosting our seventh annual REPREVE Champions of Sustainability Awards in New York City. The awards celebrate both the industry pioneers who have helped Unifi achieved the milestone of recycling over 40 billion plastic bottles into new products through REPREVE as well as our efforts to expand our impact through new brand collaborations and upcoming product launches.

翻到第8張幻燈片。本月晚些時候，我們將在紐約市舉辦第七屆年度 REPREVE 永續發展冠軍獎頒獎典禮。這些獎項旨在表彰那些幫助 Unifi 透過 REPREVE 計畫將超過 400 億個塑膠瓶回收製成新產品的產業先驅，以及我們透過新的品牌合作和即將推出的產品來擴大影響力的努力。

The award was presented to 37 brand and retail partners that have transformed 10 million or more recycled plastic bottles and 64 textile partners that have transferred 50 million or more recycled plastic bottles through the use of REPREVE Performance Fibers. This year, we will be celebrating key brands such as Nike, Under Armour, INDITEX, Royalties, LOVESAC and Serta Simmons Bedding. We look forward to continuing to work with these partners to reduce negative environmental impacts and be good stewards of our planet and future for inspiring others in our industry to do the same.

該獎項頒發給了 37 家品牌和零售合作夥伴，他們透過使用 REPREVE 高性能纖維，轉化了 1000 萬個或更多回收塑膠瓶；以及 64 家紡織合作夥伴，他們透過使用 REPREVE 高性能纖維，轉化了 5000 萬個或更多回收塑膠瓶。今年，我們將專注於慶祝耐吉、安德瑪、INDITEX、Royalties、LOVESAC 和 Serta Simmons Bedding 等重要品牌。我們期待繼續與這些合作夥伴攜手合作，減少對環境的負面影響，成為地球和未來的好管家，並激勵業內其他人士也這樣做。

With that, I would now like to pass the call over to A.J. to discuss our financial results for the quarter.

接下來，我想把電話交給 A.J.，讓他來討論一下我們本季的財務表現。

Thank you, Eddie, and good morning, everyone. The third quarter was another step in the right direction for Unifi as we continue to make strides in overcoming the negative impact our business faced due to the inventory destocking challenges in the apparel industry and its supply chains. As both Al and Eddie have noted, we are cautiously optimistic that we have moved out of this inventory destocking period, which is evident by quarter over quarter revenue growth and sequential gross profit improvement.

謝謝你，艾迪，大家早安。第三季對 Unifi 而言是朝著正確方向邁出的又一步，我們繼續努力克服服裝業及其供應鏈庫存去庫存挑戰對我們的業務帶來的負面影響。正如 Al 和 Eddie 都指出的那樣，我們謹慎樂觀地認為，我們已經走出了庫存去庫存期，這從季度環比收入增長和毛利潤環比改善中可以明顯看出。

Our quarter-over-quarter progress highlights the benefits of our recently implemented profitability improvement plan. As Eddie stated earlier, the plan has been progressing as anticipated, and we are continuing to focus on keeping our variable operating expenses across both production and administrative functions low and we remain on track to reduce our expenses by approximately $2.5 million per quarter beginning in fiscal '25.

我們季度環比的進展凸顯了我們近期實施的獲利能力提升計劃的成效。正如艾迪之前所說，該計劃一直按預期推進，我們將繼續專注於降低生產和行政職能方面的可變營運費用，並預計從 2025 財年開始，每季減少約 250 萬美元的支出。

As a reminder, we plan to strategically reinvest these cost savings and increase profits from both our cost reset and sales transformation into areas of our business that promise additional revenue and margin enhancing opportunities.

再次提醒大家，我們計劃將透過成本調整和銷售轉型節省下來的成本和增加的利潤，有策略地再投資到我們業務中那些有望帶來額外收入和利潤增長機會的領域。

Turning now to our financial results on slide 9, you will see our consolidated financial highlights for the quarter. Consolidated net sales for the quarter were $149 million, up approximately 9% on a sequential basis with higher sales volumes following the holiday shutdown periods in November and December. This led to a commensurate improvement in gross profit.

現在請看第 9 頁的財務業績，您將看到本季的綜合財務亮點。本季綜合淨銷售額為 1.49 億美元，季增約 9%，這主要得益於 11 月和 12 月假期停工期後銷量的增加。這導致毛利相應提高。

Turning to slide 10. In the America's segment net sales improved by 13% on a sequential basis, primarily due to both seasonally higher sales volumes and the recent share gains mentioned earlier by Al and Eddie. All of this led to a sequential improvement in gross profit that was further bolstered by our recent cost-saving efforts.

翻到第10張投影片。美洲地區的淨銷售額環比增長 13%，這主要歸功於季節性銷售量增加以及 Al 和 Eddie 前面提到的最近市場份額的增長。所有這些因素共同促成了毛利的持續成長，而我們近期採取的成本節約措施又進一步鞏固了這一成長勢頭。

Slide 11 displays our Brazil segment highlights, which experienced both net sales and gross profit increases on a sequential basis, primarily due to the seasonally higher sales volumes, market share gains and modest pricing pressure relief from competitive imports.

第 11 張幻燈片展示了我們巴西業務的亮點，該業務的淨銷售額和毛利潤均環比增長，這主要是由於季節性銷售量增加、市場份額增長以及來自競爭性進口產品的價格壓力略有緩解。

On slide 12, our Asia segment was negatively impacted during the quarter as expected due to the Chinese New Year, which drove lower sales volumes and accordingly lower gross profit. Fortunately, the portfolio remained strong with REPREVE products and value added technologies before passing the call back to Eddie for some closing commentary, I'll now briefly discuss our balance sheet on slide 13.

如投影片 12 所示，由於中國新年的影響，我們的亞洲業務在本季受到了負面影響，銷量下降，毛利也相應下降，這與預期相符。幸運的是，REPREVE 產品和增值技術在投資組合中保持強勁勢頭。在將電話轉回給 Eddie 做總結評論之前，我將在第 13 張投影片上簡要討論一下我們的資產負債表。

During the quarter, we continued to focus on working capital management and cost controls, allowing for a better free cash flow situation in the quarter and year to date periods. CapEx spend continues to be focused on maintenance levels and remains significantly lower than the prior two fiscal years.

本季度，我們繼續專注於營運資金管理和成本控制，從而在本季和年初至今期間實現了更好的自由現金流狀況。資本支出仍主要集中在維護水平，且遠低於前兩個財政年度。

With the current fiscal year expected to be less than $16 million. We remain confident that our business is well positioned for realizing profitable growth opportunities, and we continue to manage the balance sheet accordingly.

預計本財年營收將不足 1,600 萬美元。我們仍然相信，我們的業務已做好充分準備，能夠實現獲利成長機會，我們將繼續相應地管理資產負債表。

I will now pass the call back to Eddie to take us through the last slides of the presentation and make some final comments.

現在我將把電話轉回給艾迪，讓他帶我們瀏覽簡報的最後幾張投影片並做一些總結性評論。

Thank you, raging. So let's now turn to slide 14 to discuss our forecast for the fourth quarter of fiscal 2024. For the fourth quarter, we are expecting net sales between $160 million and $165 million, adjusted EBITDA between $4 million and $6 million dollars. Capital expenditures between $4 million and $5 million dollars and the effective tax rate is expected to demonstrate continued volatility.

謝謝你，憤怒的你。現在讓我們翻到第 14 張投影片，討論我們對 2024 財年第四季的預測。我們預計第四季淨銷售額在 1.6 億美元至 1.65 億美元之間，調整後 EBITDA 在 400 萬美元至 600 萬美元之間。預計資本支出在 400 萬至 500 萬美元之間，實際稅率將持續波動。

Moving on to slide 15. As evidenced by our recent quarter-over-quarter financial growth, we are cautiously optimistic that December was the bottom of the inventory destocking in the apparel industry. The quality and the improved morale of customer conversations that we've been having over the last few months gives us the confidence that we will not only see an increase in net sales on a sequential basis in the fourth quarter, but also a strong pivot growth in fiscal year 2025.

接下來是第15張投影片。從我們最近的季度環比財務成長來看，我們謹慎樂觀地認為，12 月是服裝業庫存去庫存的最低點。過去幾個月來，我們與客戶的溝通品質不斷提高，客戶情緒也日益高漲，這讓我們有信心，不僅第四季度淨銷售額將環比增長，而且在 2025 財年還將實現強勁的轉型增長。

We remain confident in our position as the partner of choice to brands and customers across the globe. And we will continue to implement cost saving measures and invest in the areas of our business that we believe will not only drive growth for Unifi, but also deliver value for our shareholders.

我們依然對自身作為全球品牌和客戶首選合作夥伴的地位充滿信心。我們將繼續實施節約成本的措施，並投資於我們認為不僅能推動 Unifi 成長，還能為股東創造價值的業務領域。

With that, we'll now open the line for questions. Thank you

接下來，我們將開放提問環節。謝謝

(Operator Instructions)

（操作說明）

Anthony Lebiedzinski, Sidoti & Co.

Anthony Lebiedzinski，Sidoti & Co.

Good morning, everyone, and nice to see the sequential improvement in sales, which looks at should continue based on your guidance. So thanks for taking the questions. So first, just wondering, you guys talked about the Chinese New Year impact hurting Asia sequentially.

各位早安，很高興看到銷售額持續成長，根據你們的指導，這一趨勢應該會繼續下去。謝謝您回答這些問題。首先，我想問一下，你們之前討論過春節對亞洲地區的影響。

Can you comment on that as far as what your guesses as to how much of that could have hurt sales also Easter was also earlier this year. Just as ballpark estimate. How much that may have contributed to revenue that maybe I don't know if it's going to shift over to the fourth quarter. How do we think about that?

您能否就此發表一下看法，您認為這其中有多少因素可能對銷售造成了影響？另外，今年的復活節也比往年提早了。只是大概估計一下。這可能對收入貢獻了多少，我不知道這部分收入是否會轉移到第四季。我們該如何看待這個問題？

Well, I just I think year over year at Q3 versus Q3 in China was up several percentage points. So from a Chinese New Year impact. That was still there. But we have seen improvement from a year over year. But sequentially, of course, it's down because it's such a big event over there and in the Americas, which would the US and Central America, but also in Brazil, a business segment, Easter was that last a few days of our fiscal quarter. And that did, despite a little bit about a couple million dollars less revenue than we might have otherwise anticipated.

嗯，我認為第三季同比（與中國第三季相比）成長了幾個百分點。所以，這受到了中國新年的影響。那東西還在那裡。但我們看到，與去年相比，情況有所改善。但從季度來看，當然是下降的，因為復活節在美洲（包括美國、中美洲以及巴西）都是一個大事件。復活節是我們財季的最後幾天，也是我們業務的一個組成部分。儘管收入比我們預期的少了大約幾百萬美元，但最終還是實現了目標。

(multiple speakers) Anthony, to tack Eddie’s couple of million dollars comment indeed, for really for each of those segments. It's around a couple of million impact in this quarter from both when you combine the Easter holiday with the Chinese New Year.

（多位發言者）安東尼，確實要反駁艾迪關於幾百萬美元的評論，因為確實，每一段都如此。如果將復活節假期和中國新年假期加在一起，本季這兩個假期將帶來約兩百萬的收入影響。

Thanks very much for that. Okay. And then I know you guys talked about generally about volumes and pricing. Can you share any more details as far as pricing and volumes in each region? And how do we think about this going forward, what's contemplated in your fourth quarter kind of guidance?

非常感謝。好的。我知道你們也大致討論了銷售和定價問題。您能否提供更多關於各地區定價和銷售方面的詳細資訊？那麼，我們該如何看待未來的發展呢？您在第四季業績指引中考慮了哪些因素？

And the I'll jump here and say our pricing strategy is targeted. It's slightly upwards and it's responsive in all regions. We are seeing volumes increase in each of the three regions, each of our three business segments, and that's primarily what's driving the increase in revenues with some interesting uptick also in pricing.

我在這裡插一句，我們的定價策略是有針對性的。它略微向上翹起，並且在各個區域都有響應。我們看到三個地區、三個業務部門的銷售量都在成長，這主要是推動營收成長的原因，價格也出現了一些有趣的上漲。

Got it. Okay. Thank you for that. And then in terms of the sales transformation initiatives, which you've said are aimed at improving efficiencies and processes. So I guess if we were in a baseball game, right? So what inning are you at in terms of seeing those benefits?

知道了。好的。謝謝。然後，關於銷售轉型計劃，正如您所說，這些計劃旨在提高效率和改進流程。所以，我想如果我們是在打棒球比賽的話，對吧？那麼，就享受這些好處而言，你現在處於哪個階段？

I would say that we're in the third inning as far as the sales transformation, we've been in the Q3, that was very much starting. So we'll see a lot more benefit as we move into this quarter and then into the following two quarters.

我認為，就銷售轉型而言，我們正處於第三階段，我們已經進入第三季度，這才剛起步。因此，隨著本季度以及接下來的兩個季度的到來，我們將看到更多益處。

Anthony, we see some real benefits from how we're managing inventories and also taking out slow-moving SKUs that's helping us improve mix.

安東尼，我們看到，透過管理庫存以及淘汰滯銷 SKU，我們獲得了真正的收益，這有助於我們改善產品組合。

Okay. That's helpful. So as you prepare to pivoted growth, which customer groups are you having the most engagement with I would guess it's probably beyond apparel, but maybe you could just further expand on that?

好的。那很有幫助。因此，在您準備轉向成長之際，您與哪些客戶群互動最多？我猜想這可能不僅限於服裝領域，但也許您可以進一步拓展這方面的內容？

Yeah. The growth in the America's is impacted, as you said, by beyond apparel and some of these businesses in automotive and homes, particularly in mattress that we picked up. But I would also add that apparel in Central America has made a significant uptick just in this quarter that we're in now in the last four to five weeks.

是的。正如你所說，美洲的成長不僅受到服裝業的影響，還受到汽車和家居等行業的影響，特別是我們注意到的床墊行業。但我還要補充一點，中美洲的服裝業在過去四到五週內，也就是我們現在所處的這個季度，出現了顯著的成長。

We are seeing the brands and retailers utilize the central supply chain differently than what they were just six months ago. So that is a positive uptick for us here in the America's. Of course, Brazil has worked with our as our biggest competitor went out and as the business started to come back, people are seeing the value of local supply chain and some of the customers that may not have port purchased from us in the past are gravitating towards us and we're running that operation for right now, which is really indicative of the investment we've made down there really seem to be paying dividends.

我們看到，品牌商和零售商對中央供應鏈的利用方式與六個月前相比已經發生了變化。所以這對我們美洲地區來說是一個正面的成長訊號。當然，巴西一直與我們合作，因為我們最大的競爭對手退出了市場。隨著業務開始復甦，人們看到了本地供應鏈的價值，一些過去可能沒有從我們這裡購買過的客戶現在也開始轉向我們，我們目前正在運營這項業務，這確實表明我們在那裡的投資似乎真的獲得了回報。

And in China, the growth there is simply because the brands are starting to have to reorder as the supply chain has tightened up another of the destocking, it has been accomplished.

在中國，成長的原因很簡單，就是因為供應鏈收緊，品牌不得不重新訂購，而去庫存的進程也因此完成了。

Yeah, understood. Okay. And then just switching gears to your cash flow. So you guys have certainly benefited from lower CapEx as you've delayed the installation of the Evo machines. So I guess kind of going forward, how do we think about CapEx or will you still stays in a largely maintenance mode in fiscal '25? Or I know you haven't given guidance yeah, but just directionally, how do we think about that and would love to get your thoughts on that.

嗯，明白了。好的。然後，我們再來談談現金流。所以，由於你們推遲了 Evo 機器的安裝，你們肯定從較低的資本支出中受益了。所以我想說的是，展望未來，我們應該如何考慮資本支出，還是在 2025 財年仍然主要維持在維護模式？我知道您還沒有給出明確的指導，但是只是想就方向提出一些建議，我們該如何看待這個問題？我很想聽聽您的想法。

Sure, Anthony. It's A.J. I'll start there. Certainly proud of what the teams have been able to do over the last several months, especially across cost controls, working capital management, bringing down inventories and like you mentioned, lowering CapEx levels to help preserve cash and liquidity in the lower business demand environment.

當然，安東尼。是A.J.，我就從這裡開始吧。當然，我對團隊在過去幾個月所取得的成就感到非常自豪，尤其是在成本控制、營運資金管理、降低庫存以及正如您所提到的降低資本支出水平方面，以幫助在業務需求較低的環境下保持現金和流動性。

So I'm very happy with that progress. We do expect to continue maintaining CapEx levels commensurate with business levels. So as we see the business rebound more, we will consider more projects that are appropriate and return focused.

我對這個進展非常滿意。我們預計將繼續維持與業務水準相稱的資本支出水準。隨著業務進一步復甦，我們將考慮更多合適且注重回報的項目。

But at this time, in the short term, as we are still seeing the modest recovery, expect those capital expenditures to remain at the modest levels that you see today and continuing to focus very heavily on inventory turns, especially here in the America's and continued working capital management and cost controls.

但就目前而言，短期內，由於我們仍然看到溫和的復甦，預計這些資本支出將保持在目前的溫和水平，並繼續非常重視庫存週轉，尤其是在美洲地區，以及持續的營運資本管理和成本控制。

Got it. Okay. Thanks, A.J. Then just a follow-up. In terms of the inventory turns, you guys have a goal in mind as to like where you think that could be or is that still not something you're ready to share yet?

知道了。好的。謝謝，A.J.。還有一個後續問題。關於庫存週轉率，你們心中是否有一個目標，例如你們認為應該達到什麼水準？還是你們現在還不方便透露這個目標？

Sure. We are, the inventory turns initiative is primarily focused in the America's. Others there's little left to do in Brazil and Asia as far as their supply chains. So in the America's, obviously, with what we experienced over the last couple of years, that demand levels, we had very constrained inventory turn levels in the range of three to four.

當然。我們正在推進庫存週轉計劃，該計劃主要集中在美洲地區。對於巴西和亞洲的其他一些國家來說，就其供應鏈而言，已經沒有什麼可做的了。因此，在美洲，顯然，根據我們過去幾年所經歷的需求水平，我們的庫存週轉率非常有限，在三到四之間。

And we are certainly marching towards a much more positive level around the five turns per year and imagine that is certainly consistent with some of the better turns levels that we've had in a more positive years.

我們肯定正在朝著每年五次左右的更積極的水平邁進，而且我認為這肯定與我們在更積極的年份中取得的一些更好的轉彎次數水平是一致的。

(multiple speakers) the health of the inventory that we have as we increase the turns is improving dramatically, freeing us to put inventory in place of products that are move quickly.

（多人發言）隨著週轉率的提高，我們庫存的健康狀況正在顯著改善，這使我們能夠將庫存用於快速週轉的產品。

So aged inventory down significantly and continuing to go down. But we're really, we have high goals for yeah, for returns. I think we can get there.

因此，滯銷庫存大幅下降，而且還在持續下降。但是，我們對回報確實有很高的目標。我認為我們能做到。

All right. Well, that's very helpful and good luck with everything and best of luck. Thank you.

好的。那真是太有幫助了，祝你一切順利，好運連連。謝謝。

Thank you.

謝謝。

Thank you, Anthony.

謝謝你，安東尼。

This concludes today's Q&A session and today's call. Thank you. You may now disconnect.

今天的問答環節和電話會議到此結束。謝謝。您現在可以斷開連線了。