USANA Health Sciences Inc (USNA) 2024 Q3 法說會逐字稿

Good day, and welcome to today's USANA Health Sciences third quarter earnings conference call. While today's recorded presentation, all participants will be in a listen-only mode. (Operator Instructions) And now I'd like to hand the call over to Andrew Masuda. Please go ahead, sir.

美好的一天，歡迎參加今天的 USANA 健康科學第三季財報電話會議。在今天錄製簡報時，所有參與者都將處於僅聽模式。（接線生指示）現在我想將電話轉給 Andrew Masuda。請繼續，先生。

Thank you, Sergei, and good morning, everyone. We appreciate you joining us to review our third quarter 2024 results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website.

謝謝你，謝爾蓋，大家早安。感謝您與我們一起回顧我們 2024 年第三季的業績。今天的電話會議透過網路直播進行現場直播，您可以直接從我們的網站 ir.usana.com 存取。通話結束後不久，我們的網站上將提供重播。

As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ perhaps materially from the results projected in such forward-looking statements.

謹此提醒，在本次電話會議期間，管理階層將就我們公司的未來事件或未來財務表現做出前瞻性陳述。這些陳述涉及風險和不確定性，可能導致實際結果與此類前瞻性陳述中預測的結果有重大差異。

Examples of these statements include those regarding our strategies and outlook for fiscal year 2024 as well as uncertainty related to the economic and operating environment around the world, our operations and financial results. We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC.

這些聲明的範例包括有關我們 2024 財年策略和前景的聲明，以及與全球經濟和營運環境、我們的營運和財務表現相關的不確定性。我們提醒您，這些聲明應與揭露資訊結合起來考慮，包括我們最近向 SEC 提交的文件中包含的具體風險因素和財務資料。

I'm joined by our President and CEO, Jim Brown; our Chief Financial Officer, Doug Hekking; our Chief Commercial Officer, Brent Neidig as well as other executives. Yesterday, after the market closed, we announced our third quarter results and posted our management commentary document on the company's website.

我們的總裁兼執行長吉姆布朗 (Jim Brown) 也加入了我的行列。我們的財務長 Doug Hekking；我們的首席商務長 Brent Neidig 以及其他主管。昨天收盤後，我們公佈了第三季業績，並在公司網站上發布了我們的管理層評論文件。

We'll now hear brief remarks from Jim before opening the call for questions.

在開始提問之前，我們現在將聽取吉姆的簡短發言。

Thank you, Andrew, and good morning, everyone. Third quarter net sales fell modestly short of our internal expectations as the operating environment in many of our key markets remain challenging. Notably, our China market experienced a more challenging environment in the third quarter than what we experienced during the first six months of the year.

謝謝你，安德魯，大家早安。由於我們許多主要市場的營運環境仍然充滿挑戰，第三季淨銷售額略低於我們的內部預期。值得注意的是，我們的中國市場在第三季經歷了比今年前六個月更具挑戰性的環境。

Although we increased active customer counts by 7% year-over-year in this important market, our net sales declined by 4% due to a decrease in average spend. We anticipate a continued challenging operating environment through the remainder of the year. We're planning to increase promotional activity in the fourth quarter to support and build momentum in our business. Our updated fiscal 2024 guidance incorporates these elements.

儘管我們在這個重要市場的活躍客戶數量同比增長了 7%，但由於平均支出下降，我們的淨銷售額下降了 4%。我們預計今年剩餘時間營運環境將持續充滿挑戰。我們計劃在第四季度增加促銷活動，以支持和增強我們的業務勢頭。我們更新的 2024 財政年度指南納入了這些要素。

We continue to focus and execute on the strategic initiatives previously communicated. Although these initiatives have not yet meaningfully manifested themselves in our operating results, we believe they are instrumental to laying the foundation for future growth and are confident that they will drive long-term customer and revenue growth. Let me share with you a few items.

我們將繼續關注並執行先前傳達的策略舉措。儘管這些舉措尚未在我們的經營業績中得到有意義的體現，但我們相信它們有助於為未來的成長奠定基礎，並有信心它們將推動長期的客戶和收入成長。讓我與您分享一些項目。

First, we continue to prioritize engaging with our associate sales leaders who are vital to bringing in new customers to the USANA family. During the third quarter, we hosted a successful American Europe convention in Las Vegas, and this was one of the best conventions we've had in terms of feedback from our associates.

首先，我們繼續優先考慮與銷售副領導合作，他們對於為 USANA 大家庭帶來新客戶至關重要。第三季度，我們在拉斯維加斯成功舉辦了美洲歐洲會議，從員工的回饋來看，這是我們舉辦過的最好的會議之一。

Training, development, and recognition were key focus areas at this event. With an emphasis on actionable initiatives to help our sales leaders grow their business. Feedback has been positive and leaders are actively adopting these new initiatives.

培訓、發展和認可是本次活動的重點領域。重點是採取可行的措施來幫助我們的銷售領導者發展業務。回饋是正面的，領導者正在積極採用這些新措施。

Second, thanks to the collaborative efforts of our sales, marketing and research and development teams. We launched our first set of products under our new commercial team structure. Celavive Resurfacing Serum and Whey Protein Isolate. Both products were launched in the US and Canada and will be available in other markets over the next couple of quarters.

其次，得益於我們銷售、行銷和研發團隊的協同努力。我們在新的商業團隊架構下推出了第一套產品。Celavive 煥膚精華和乳清分離蛋白。這兩款產品均已在美國和加拿大推出，並將在未來幾季在其他市場上市。

These product launches are illustrative of the early stages of our product innovation strategy which includes increasing the cadence of new and upgraded high-quality, relevant and premium products. Additionally, I'm encouraged by the increased agility that allowed us to bring these products to market.

這些產品的發布說明了我們產品創新策略的早期階段，其中包括加快新產品和升級的高品質、相關和優質產品的節奏。此外，我對敏捷性的提高感到鼓舞，這使我們能夠將這些產品推向市場。

We have our -- we have an exciting pipeline of additional products across our product categories currently in development with plans to be introduced throughout next year. I'll close by saying that I am most confident in our team to execute our strategy to return USANA to longer-term growth.

我們在我們的產品類別中擁有一系列令人興奮的其他產品，目前正在開發中，並計劃於明年推出。最後我要說的是，我對我們的團隊執行我們的策略以使USANA恢復長期成長充滿信心。

With that, I'll now ask the operator to please open the lines for questions

這樣，我現在請接線員打開提問線路

(Operator Instructions) Anthony Lebiedzinski, Fidelaity Sidoti.

（操作員說明）Anthony Lebiedzinski、Fidelaity Sidoti。

Good morning and thank you for taking the questions. So I guess first you guys talked about the positive feedback coming out of the Las Vegas convention. I think you touched on a couple of those. But maybe if you could just maybe share more details and also as far as the feedback that you're getting, I mean, how quickly can some of those inputs be put in and when you can start to see tangible benefits from that?

早上好，感謝您提出問題。所以我想你們首先談論了拉斯維加斯大會的正面回饋。我想你提到了其中的幾個。但也許如果您可以分享更多細節以及您收到的回饋，我的意思是，其中一些投入可以多快投入以及何時可以開始從中看到切實的好處？

Thanks, Anthony. This is Brent. I'll take that question. As you know, momentum in this business is very important, and the momentum derives from trust between the company and our sales leaders. And I think that's one of the most important things that we did in this convention and that an initiative we've tried to go forward with in 2024 is rebuilding that trust with our sales leaders.

謝謝，安東尼。這是布倫特。我來回答這個問題。如你所知，這個業務的動力非常重要，而動力源自於公司和我們的銷售領導之間的信任。我認為這是我們在本次大會上所做的最重要的事情之一，我們試圖在 2024 年推進的一項舉措就是重建與我們銷售領導者的信任。

So the positive feedback that we received is that they feel the company is on the right direction. They feel that we have taken their feedback and input into account when we create new products. The tools and the systems that we presented at the convention were also in line with what it is that they were hoping for.

因此，我們收到的正面回饋是，他們認為公司正走在正確的方向上。他們認為我們在創造新產品時考慮了他們的回饋和意見。我們在大會上展示的工具和系統也符合他們的期望。

So through that feedback mechanism, we've heard that they are extremely excited for the future. And like I said, it takes time for momentum to grow, but we expect this is the first part of that momentum phase. And over the course of Q4 -- excuse me Q4 and into Q1 of next year, we expect that to continue to grow.

因此，透過該反饋機制，我們聽到他們對未來感到非常興奮。正如我所說，勢頭的增長需要時間，但我們預計這是該勢頭階段的第一部分。在第四季度——對不起，第四季度和明年第一季度，我們預計這一數字將繼續增長。

Thank you for that, Brent. Okay. And then in terms of the faster new product development process that you guys talked about, I guess what would be the main reason for that, that you've been able to do this? And I mean do you think you'll need to hire perhaps more people to help ensure this continues?

謝謝你，布倫特。好的。然後，就你們談到的更快的新產品開發過程而言，我想你們能夠做到這一點的主要原因是什麼？我的意思是，您認為您是否需要雇用更多人員來幫助確保這種情況繼續下去？

I don't think more people are needed. The thing that we primarily did internally is we restructured the way that, that product development process works. We've created cross-functional teams that sit together and that they're able to solve problems more quickly than they used to.

我認為不需要更多的人。我們主要在內部做的事情是重組產品開發流程的工作方式。我們創建了跨職能團隊，他們坐在一起，能夠比以前更快解決問題。

There's a tighter collaboration now between our research and development team and the product team. So there's increased communication that's going on. We're taking feedback more quickly from our markets. And we're just able to implement that much more rapidly than we ever have before.

現在我們的研發團隊和產品團隊之間的合作更加緊密。因此，溝通正在增加。我們正在更快地從市場獲取回饋。我們能夠比以往更快地實施這一點。

So as Jim mentioned in his opening comments, we've got a very robust product pipeline prepared for 2025. And that's really a result of all this improvement that's been made within this product development process.

正如 Jim 在開場白中提到的那樣，我們已經為 2025 年準備了非常強大的產品線。這確實是產品開發過程中所有這些改進的結果。

Yes. And Anthony, this is Doug. What Brent is saying is right on point. I think the other thing is both from Brent's leadership and Jim's leadership. If we see a need to go back and invest more in those areas is something we're committed to do. Right now, we think we're resourced and looking to gain some efficiency from this new structure for the commercial team, but I think pretty optimistic, but definitely willing to invest for things that we think generate a return.

是的。安東尼，這是道格。布倫特說的很對。我認為另一件事來自布倫特和吉姆的領導。如果我們認為有必要回去並在這些領域進行更多投資，我們就會致力於這樣做。目前，我們認為我們資源充足，並希望從商業團隊的這種新結構中獲得一些效率，但我認為非常樂觀，但絕對願意投資我們認為會產生回報的事情。

Understood. And then as far as the -- just a follow-up on the pipeline of new products. Can you share any more details as far as timing and whether -- is it more SKUs than what you typically have done in the past as far as those are concerned and will those be in all markets? Or are you just looking to introduce those new products in only some of your markets? Maybe if you could just speak to that.

明白了。至於新產品的後續工作。您能否分享更多關於時間安排的細節，以及是否會比您過去通常所做的更多 SKU，以及這些 SKU 是否會在所有市場中出現？還是您只是想在部分市場推出這些新產品？也許如果你能談談這一點就好了。

Sure. The way that we're approaching new product development is we have to ensure that our existing product lineup is still very compelling and competitive in the marketplace. That's where we are placing the majority of our effort initially is to ensure that the existing products are very compelling.

當然。我們進行新產品開發的方式是，我們必須確保我們現有的產品系列在市場上仍然非常引人注目且具有競爭力。這就是我們最初投入大部分精力的地方，以確保現有產品非常引人注目。

So that would be the first part of the rollout for next year are some significant upgrades to our existing products. You'll expect to see that very slowly in Q1 and start to pick up speed in Q2 and Q3 as the year goes by.

因此，明年推出的第一部分是我們現有產品的一些重大升級。您預計會在第一季看到這一速度非常緩慢，並隨著時間的推移在第二季和第三季開始加快速度。

In terms of a rollout process, it's always easiest to launch a product in the United States first, given the regulatory environment -- just the process that it takes to bring a product to market. But our intention is that as the quarters go by, each of those products will begin to roll out throughout the globe.

就推出過程而言，考慮到監管環境（即將產品推向市場所需的過程），首先在美國推出產品總是最容易的。但我們的目的是，隨著季度的推移，這些產品中的每一個都將開始在全球推出。

China has its own product development process that it goes through. So it may slightly differ from the rest of the markets. But for now, the intention is that we -- when necessary, we'll start to roll those products out globally.

中國有自己的產品開發流程。因此，它可能與其他市場略有不同。但目前，我們的目的是，在必要時，我們將開始在全球推出這些產品。

And this is Jim. Just a little bit more. We will see the SKU count increased a little bit at the beginning. But with the product team, they're looking at the whole product life cycle. So over time, we'll be evaluating some of the SKUs that aren't performing as well and probably discontinuing some.

這是吉姆。再多一點點。一開始我們會看到 SKU 數量略有增加。但對於產品團隊來說，他們正在關注整個產品生命週期。因此，隨著時間的推移，我們將評估一些表現不佳的 SKU，並可能停止其中一些。

And I would say the engagement that Brent has done with the field leaders and his team across the globe has more regional and local opportunities for different product offerings as well. And so that's something that's taken into consideration.

我想說的是，布倫特與全球各地的現場領導者及其團隊的合作也為不同的產品提供了更多的區域和本地機會。所以這是需要考慮的事情。

That makes sense. Okay. And then I guess my last question before I pass it on to others. So I guess, part of your lower SG&A was reduced advertising expenses. So first, I guess, do you think that perhaps reduced advertising had any sort of impact on your 3Q sales? And I guess, secondly, how do you -- how should we think about advertising for 4Q and beyond that?

這是有道理的。好的。然後我猜出我的最後一個問題，然後再傳遞給其他人。所以我猜，你們較低的SG&A 的一部分是減少了廣告費用。首先，我想，您認為廣告的減少可能會對您第三季的銷售產生任何影響嗎？我想，其次，我們該如何考慮第四季及以後的廣告？

Yeah. I think the primary catalyst here is just moving away from certain activities that just weren't demonstrating much of a return. I think we're constantly looking to repurpose things to go back and stimulate whether that's in the form of promotions, incentives, ad spend, those are things we'll continue to look at. I think what you saw in particular, were just moving away from a few things that just have shown not to be that effective.

是的。我認為這裡的主要催化劑只是放棄某些沒有表現出太多回報的活動。我認為我們一直在尋求重新調整事物的用途，以回溯並刺激，無論是促銷、激勵、廣告支出的形式，這些都是我們將繼續關注的事情。我認為你所看到的，特別是正在遠離一些剛剛被證明並不那麼有效的事情。

That makes a lot of sense. That makes a lot of sense. All right, the best of luck.

這很有意義。這很有意義。好吧，祝你好運。

Thanks Anthony.

謝謝安東尼。

(Operator Instructions) Linda Bolton Weiser, DA Davidson.

（操作員說明）Linda Bolton Weiser，DA Davidson。

Yes hii, So I was wondering, as you pick up the promotional activity, does that affect more the associate incentive expense line? Or does that affect the gross margin more or maybe both?

是的，嗨，所以我想知道，當您進行促銷活動時，這是否會影響員工激勵費用線？或者這對毛利率的影響更大，或者兩者兼而有之？

Yes. And Brent can chime in here, too, but we run different types of promotions and incentives. Some are designed specifically more towards short-term value initiative to drive behavior, getting people exposed to the product. Others are more towards rewarding people on sales to generated by new customers they introduce. And so you see a little bit of both.

是的。布倫特也可以在這裡插話，但我們開展不同類型的促銷和激勵措施。有些是專門為短期價值舉措而設計的，以驅動行為，讓人們接觸到產品。其他人則更傾向於獎勵他們介紹的新客戶帶來的銷售額。所以你會看到兩者都有一點。

I would say, I think in the short term, we'll probably have more of trying to go back and really continue to go back and follow up on the engagement we have with the field and support new sales generated to new customers will be probably a heavier piece of that. And I think you'll see some increase in payout at least that's what we've modeled.

我想說，我認為在短期內，我們可能會更多地嘗試回去，並真正繼續回去並跟進我們與該領域的合作，並支持向新客戶產生的新銷售可能會其中較重的一塊。我認為您會看到支出增加，至少我們所建模的就是這樣。

Okay. And then the revised guidance for the year in terms of the EPS for the fourth quarter that's implied, I mean, I had to reduce my estimate quite a bit. More so, it seemed like on the margins, so what would be the particular things impacting margins in the fourth quarter? Is that just that increased promotional spending? Or is there something else going on in the cost structure? Maybe you can explain that about the margin expectations for the fourth quarter.

好的。然後，就第四季度每股收益而言，今年修訂後的指導意味著，我的意思是，我必須大幅降低我的估計。更重要的是，它似乎處於邊緣狀態，那麼影響第四季利潤率的具體因素有哪些呢？這只是促銷支出的增加嗎？或者成本結構中還存在其他問題嗎？也許你可以解釋一下第四季的利潤率預期。

Yeah, I'll give you I'll give you a little bit of color. With our third quarter results, EPS was actually higher than what we anticipated. There are some things that we just didn't get in motion during the third quarter, and we would have expected a little bit lower margin profile in Q3 and EPS but it's what you said and kind of what we just talked about. I would expect a higher spend on the incentive line as we step into this and support the field and continue to work on really creating some high levels of engagement.

是的，我會給你一點顏色。從我們第三季的業績來看，每股盈餘實際上高於我們的預期。有一些事情我們在第三季沒有採取行動，我們預計第三季的利潤率和每股盈餘會略低，但這是你所說的，也是我們剛才談到的。當我們進入這一領域並支持該領域並繼續努力真正創造一些高水平的參與度時，我預計激勵額度上的支出會更高。

Okay. And then just on your new products, the whey protein, is that specifically designed for customers that are taking GLP-1 drugs? I'm just curious about that.

好的。那麼你們的新產品乳清蛋白是專門為服用 GLP-1 藥物的客戶設計的嗎？我只是對此感到好奇。

Hey, Linda, it's Brent. That isn't the main intention for that particular product. It could be used in that capacity just because many people that are on GLP-1 drugs don't get it sufficient protein profile in their diet. But it's, in general, just a very premium Whey Protein Isolate that's very clean and there's a large market for that out there, especially amongst our existing distributor base. So that's primarily the reason why we brought that to market.

嘿，琳達，我是布倫特。這不是該特定產品的主要目的。它可以發揮這種作用，只是因為許多服用 GLP-1 藥物的人在飲食中沒有獲得足夠的蛋白質。但總的來說，它只是一種非常優質的乳清分離蛋白，非常乾淨，並且有很大的市場，特別是在我們現有的經銷商群體中。這就是我們將其推向市場的主要原因。

Okay. And then I'm curious, the other product is a beauty serum, I guess it's a beauty product, right? A serum, is that correct? So I'm kind of curious like why not a new product in nutritional supplements, which is more traditionally your line -- your area more of strength and scale. Why necessarily these two products that are in kind of a little bit different areas?

好的。然後我很好奇，另一個產品是美容液，我猜它是美容產品，對吧？血清，正確嗎？所以我有點好奇為什麼不推出營養補充品領域的新產品，這是你傳統上的產品線——你的領域更具實力和規模。為什麼這兩種產品必然處於稍微不同的領域？

Well, one product that did actually come to market at our Americas and Europe convention is called Rest Complete, and that is in the nutritionals category, and that's specifically a sleep product. We didn't call that out per se, but that is a product that did come to market. You're exactly right. We've got three categories. Nutritionals is by far and way our largest and most popular category.

嗯，實際上在我們的美洲和歐洲大會上上市的一種產品叫做“Rest Complete”，它屬於營養品類別，特別是一種睡眠產品。我們本身並沒有指出這一點，但這是一個確實進入市場的產品。你說得完全正確。我們分為三個類別。營養品是迄今為止我們最大和最受歡迎的類別。

When you look at 2025, the brunt of our product introductions and upgrades are going to be focused on the nutritionals category to ensure that we continue to maintain our premium position in that space. But we also have many new products in store for Celavive line, which our skin care line. This just happened to be one of the products that was ready at the time to bring to market.

展望 2025 年，我們的產品推出和升級將主要集中在營養品類別，以確保我們繼續保持在該領域的優質地位。但我們也為我們的護膚系列 Celavive 系列準備了許多新產品。這恰好是當時準備推向市場的產品之一。

Okay. And then I'm curious about your capital allocation thoughts. I know you discussed it frequently with the Board, but your free cash flow has come down, but it's still fairly strong. It's at least $50 million a year. And so is your intent to just kind of let your cash balance build up? What's the trigger? I guess, what do you need to see in order to maybe go back to share repurchase or something like that?

好的。然後我很好奇你的資本配置想法。我知道您經常與董事會討論這個問題，但您的自由現金流有所下降，但仍然相當強勁。每年至少有5000萬美元。那麼您的目的只是讓您的現金餘額增加嗎？觸發因素是什麼？我想，你需要看到什麼才能回去進行股票回購或類似的事情？

Yes. Linda, you alluded to I mean, literally, the first half hour of the meeting, this Board meeting, we talked about this. This is an every quarter issue. And so the Board, along with Jim's direction is reviewing the totality of different things that we have in the works doing this other stuff and trying to make sure that we're not being too short-term thinking there and looking down the road and figuring out what the best use of that cash is.

是的。琳達，你提到我的意思是，從字面上看，在會議的前半個小時，這次董事會會議，我們討論了這個。這是每季的問題。因此，董事會以及吉姆的指導正在審查我們正在做的其他事情的不同事情的整體，並試圖確保我們不會過於短期思考，展望未來並弄清楚弄清楚這筆現金的最佳用途是什麼。

The direction from the Board and Jim is we need to find a way to put that to work to generate a return. And so we all get that. I would still say fundamentally, our orders of priority are investing in the organic business. We've been very active looking at different opportunities in the business development side. That would be the second one.

董事會和吉姆的指示是我們需要找到一種方法將其付諸實踐以產生回報。所以我們都明白了。我仍然想說，從根本上來說，我們的首要任務是投資有機業務。我們一直非常積極地尋找業務發展的不同機會。那將是第二個。

And then when we don't have things that we see as potential, there are some of this other stuff, and we look at excess cash and redistributing that what we've done is through share repurchase. So those remain our areas of focus and priority.

然後，當我們沒有我們認為有潛力的東西時，就會有一些其他的東西，我們會考慮多餘的現金並重新分配我們所做的就是透過股票回購。因此，這些仍然是我們的重點和優先領域。

Okay. And then my last question just has to do with China. You said, I guess, in the press release or something that you didn't think the stimulus activities there would really affect your business all that much. But I don't know, I mean the Chinese government is doing these things because they want to try to stimulate consumer activity and the economy.

好的。我的最後一個問題與中國有關。我想，您在新聞稿或其他內容中表示，您認為那裡的刺激活動不會真正影響您的業務。但我不知道，我的意思是中國政府正在做這些事情，因為他們想嘗試刺激消費者活動和經濟。

I mean, are you just saying you feel like it's hopeless or there's such a secular issue in China, a structural issue? If government stimulus won't help them then what will, I guess? And how are you planning for that in the future as it being your largest market? Like?

我的意思是，你只是說你覺得沒有希望了，或者中國存在這樣一個世俗問題，一個結構性問題？如果政府的刺激措施不能幫助他們，那我想什麼可以呢？作為您最大的市場，您未來如何規劃？喜歡？

Yeah. This is Brent here. I think it's extremely optimistic that we're seeing the government take a stimulus approach or stimulus measures to incentivize economic development and growth within China. That's something that we certainly want to see, and that's something that our distributors and customers in China want to see as well.

是的。這是布倫特。我認為，我們看到政府採取刺激措施來刺激中國國內的經濟發展和成長，這是非常樂觀的。這是我們當然希望看到的，也是我們在中國的經銷商和客戶希望看到的。

I think what was mentioned in the opening remarks is that we believe the current stimulus that's been done, it's primarily been directed towards shoring up the stock market, showing a provincial and local branches, banks and governments.

我認為開場白中提到的是，我們認為目前已經採取的刺激措施主要是為了支撐股市，包括省級和地方分行、銀行和政府。

So that particular stimulus that came out, we don't see a direct impact to consumers' willingness to spend in the short term. But in my comments to Anthony previously, when I talk about momentum, the anecdotes that we've been hearing from our customers and from our team over in China is that this is a positive sign and that it starts to change the [psyche] of the people over in China, knowing that the government is there that's going to help shore up and support their economic efforts.

因此，我們認為推出的特定刺激措施不會對消費者的短期消費意願產生直接影響。但在我之前對安東尼的評論中，當我談到動力時，我們從客戶和中國團隊那裡聽到的軼事是，這是一個積極的信號，它開始改變人們的[心理]。政府將幫助支撐和支持他們的經濟努力。

So we're optimistic that, that will continue. And as it does, we believe that, that will change the sentiment of our consumers in China, and we should see that average spend per customer continue to go up from where it's currently at.

因此，我們樂觀地認為，這種情況將會持續下去。事實上，我們相信，這將改變中國消費者的情緒，我們應該看到每位客戶的平均支出從目前的水平繼續上升。

Our customer acquisition throughout the year so far has been greater than in 2023. Our active customer count has increased as well. So those are all very positive indicators. We just now believe that as soon as economic faith starts to pick up, then spend should match the customer count, and that will be a positive thing for us.

到目前為止，我們全年的客戶獲取量比 2023 年還要多。我們的活躍客戶數量也有所增加。所以這些都是非常正面的指標。我們現在相信，一旦經濟信心開始回升，支出就應該與客戶數量相匹配，這對我們來說將是一件正面的事情。

Yeah. And I would say, the consumers respond a little -- I mean, we talked -- Brent talks with the group over there all the time. We hear feedback and then helping us to view it from their eyes and better understand. And I think the Chinese consumer is a little bit different than what you'd see here in the States and they behave different.

是的。我想說，消費者做出了一些反應——我的意思是，我們交談過——布倫特一直在與那邊的小組交談。我們聽取回饋，然後幫助我們從他們的角度看待並更好地理解。我認為中國消費者與美國消費者有些不同，他們的行為也有所不同。

So I think what Brent said is spot on is that I think there is a positive response to the government starting to do things. None of those things right now are directly related to individual consumer spend and they could go there. And I think the Chinese government can -- at least with what we've communicated, has some intent to go back and continue to support the economy and support the growth in China.

所以我認為布倫特所說的很對，我認為政府開始採取行動得到了積極的回應。目前這些事情都與個人消費者支出沒有直接關係，他們可以去那裡。我認為中國政府可以——至少從我們所傳達的訊息來看，有一定的意願回去繼續支持中國的經濟和成長。

So I think we're optimistic there. But the initial measures, the response we got is that just that in and of itself doesn't go back and trigger as a catalyst to the business.

所以我認為我們對此持樂觀態度。但最初的措施，我們得到的回應是，這些措施本身並不會回歸並觸發業務的催化劑。

Okay. Well, thanks for that and good luck with everything.

好的。嗯，謝謝你，祝一切順利。

Thanks, Linda.

謝謝，琳達。

(Operator Instructions) It appears there are no further questions at this time. With this, I'd like to hand the call back over to Andrew Masuda for any additional or closing remarks. Over to you, sir.

（操作員說明）目前似乎沒有其他問題。至此，我想將電話轉回安德魯·增田 (Andrew Masuda)，以便他發表補充或結束語。交給你了，先生。

Thank you for your questions and for your participation on today's conference call. If you have any remaining questions, please feel free to contact Investor Relations at 801-954-7210.

感謝您提出問題並參加今天的電話會議。如果您還有任何疑問，請隨時致電 801-954-7210 聯絡投資者關係部。

Thank you. This concludes today's conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。女士們先生們，你們現在可以斷開連結了。