Victoria's Secret & Co (VSCO) 2024 Q3 法說會逐字稿

Good morning. My name is Amanda, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Victoria's Secret & Company's third-quarter 2024 earnings conference call. Please be advised that today's conference is being recorded. (Operator Instructions)

早安.我叫阿曼達，今天我將擔任你們的會議操作員。現在，我歡迎大家參加維多利亞的秘密公司 2024 年第三季財報電話會議。請注意，今天的會議正在錄製中。（操作員說明）

I would now like to turn the call over to Mr. Kevin Wynk, Vice President of External Financial Reporting and Investor Relations at Victoria's Secret & Co. Kevin, you may begin.

我現在想將電話轉給維多利亞的秘密公司 (Victoria's Secret & Co.) 外部財務報告和投資者關係副總裁 Kevin Wynk 先生。

Good morning, and welcome to Victoria's Secret & Company's third-quarter earnings conference call for the period ended November 2, 2024. As a matter of formality, I would like to remind you that any forward-looking statements we may make today are subject to our Safe Harbor statement found in our SEC filings and in our press releases.

早安，歡迎參加維多利亞的秘密公司截至 2024 年 11 月 2 日的第三季財報電話會議。作為正式問題，我想提醒您，我們今天可能做出的任何前瞻性聲明均須遵守我們在 SEC 文件和新聞稿中找到的安全港聲明。

Joining me on the call today is CEO, Hillary Super and CFO, Tim Johnson. We are available today for up to 45 minutes to answer any questions. Certain results we discuss on the call today are adjusted results and exclude the impact of certain items described in our press release, in our SEC filings.

今天與我一起參加電話會議的是執行長 Hillary Super 和財務長 Tim Johnson。我們今天最多可提供 45 分鐘的時間來回答任何問題。我們今天在電話會議上討論的某些結果是調整後的結果，不包括我們的新聞稿和美國證券交易委員會文件中描述的某些項目的影響。

Reconciliations of these and other non-GAAP measures to the most comparable GAAP measures are included in our press release, our SEC filings in the investor presentation posted on the Investors section of our website. Thanks. And now I'll turn the call over to Hillary.

這些和其他非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節包含在我們的新聞稿中，我們在網站投資者部分發布的投資者介紹中向美國證券交易委員會提交的文件。謝謝。現在我將把電話轉給希拉蕊。

Thanks, Kevin. Good morning, everyone, and thank you for joining us. I'm pleased to be with you and honored to be leading these iconic brands at this pivotal moment in their evolution. Today, I want to talk about where we are in our journey, our results from Q3, our outlook for Q4 and finally share my 90-day insights. But first, I want to thank the entire VS&Co. team for such a warm welcome over my first 3 months.

謝謝，凱文。大家早安，感謝您加入我們。我很高興與你們在一起，並很榮幸能夠在這些標誌性品牌發展的關鍵時刻領導這些品牌。今天，我想談談我們的歷程、第三季的成果、第四季的展望，最後分享我的 90 天見解。但首先，我要感謝整個 VS&Co。在我的前三個月裡，我的團隊受到如此熱烈的歡迎。

I have had a very effective onboarding and have been energized by their love for our customers, our brands and our company. Their hard work and commitment are behind the impressive results we are sharing today, and I'm proud to be on this team with them.

我的入職經驗非常有效，他們對我們的客戶、我們的品牌和我們公司的熱愛讓我充滿活力。他們的辛勤工作和奉獻精神是我們今天分享的令人印象深刻的成果的背後，我很自豪能與他們一起加入這個團隊。

As you know, when we stood up VS&Co. as an independent business in 2021, we also undertook a transformation focused on strengthening the core of our business and establishing an operationally sound organization. Today, our strong Q3 performance indicates we've reached an important milestone in that transformation. In short, it's working, and we're starting to see the results.

如您所知，當我們站起來時，VS&Co.作為一家獨立企業，我們在 2021 年也進行了轉型，重點是加強我們的業務核心並建立一個運作良好的組織。今天，我們第三季的強勁表現表明我們在這一轉型中達到了一個重要的里程碑。簡而言之，它正在發揮作用，我們已經開始看到結果。

Q3 sales growth was well ahead of our expectations, driven by broad-based strength across our business. All regions, all channels, all major merchandise categories and importantly, all brands, Victoria's Secret PINK and Adore Me, leading to our best quarterly sales growth performance since 2021.

在我們業務廣泛實力的推動下，第三季的銷售成長遠遠超出了我們的預期。所有地區、所有通路、所有主要商品類別，尤其是所有品牌，維多利亞的秘密 PINK 和 Adore Me，為我們帶來了 2021 年以來最好的季度銷售成長業績。

I am particularly optimistic because these results were powered by emotional product she loves and clear elevated brand storytelling. They were supported by exceptional shopping experiences, and I believe that VS&Co. is the best experience in the mall and has been significantly enhanced in digital.

我特別樂觀，因為這些結果是由她喜愛的情感產品和清晰的品牌故事敘述所推動的。他們得到了卓越購物體驗的支持，我相信 VS&Co.是商場裡最好的體驗，在數位化方面得到了顯著增強。

Lastly, our marketing and brand messaging integrated seamlessly with those shopping experiences, resonated deeply with existing customers.

最後，我們的行銷和品牌訊息與這些購物體驗無縫集成，與現有客戶產生了深刻的共鳴。

And as I saw myself and stores across the country, attracted a new generation of customers to our brands. So what did that add up to? For the third quarter, sales increased 7% in total with mid-single-digit growth in North America and 20%-plus growth from our international businesses. strong sales, well-managed operations and disciplined inventory management led to healthy margins and a lower operating loss than originally forecasted. In North America, Victoria's Secret and PINK had positive year-over-year sales growth across all major merchandise categories in both our stores and digital businesses grew in Q3.

當我看到自己和全國各地的商店時，我們的品牌吸引了新一代客戶。那麼這意味著什麼呢？第三季銷售額總計成長 7%，其中北美地區實現中個位數成長，國際業務成長超過 20%。強勁的銷售、良好的營運管理和嚴格的庫存管理帶來了健康的利潤率和低於最初預測的營運虧損。在北美，維多利亞的秘密和 PINK 在我們商店的所有主要商品類別中均實現了同比正銷售成長，數位業務在第三季度也實現了成長。

Traffic was up compared to last year in both channels with significant outperformance in our stores compared to the balance of the mall. Third-party market data indicates that sales in the overall intimates market in North America was down low single digits in the quarter, though our intimates business was positive in the quarter, which was encouraging.

與去年相比，兩個管道的客流量均有所增加，與商場的其餘部分相比，我們商店的表現顯著優於其他管道。第三方市場數據顯示，儘管我們的內衣業務在本季表現良好，但本季北美整體內衣市場的銷售額下降了個位數，令人鼓舞。

Victoria's Secret sales increased to last year and sales trends for all merchandise categories improved. Our beauty business continues to be our best performing category, followed by casual sleep and intimates, which also experienced growth. These categories are must win for holiday and our current trends are very encouraging.

維多利亞的秘密 (Victoria's Secret) 銷售量較去年有所增長，所有商品類別的銷售趨勢均有所改善。我們的美容業務仍然是表現最好的類別，其次是休閒睡眠和內衣業務，這些業務也經歷了成長。這些類別是假期的必備品類，我們目前的趨勢非常令人鼓舞。

PINK sales trend also improved significantly in the quarter with sales for the brand increasing compared to last year. Specifically in apparel, we were encouraged by improving customer response to our PINK back-to-campus event in August and early holiday selling in October and Q4 to date. Apparel experienced a significant trend change in the last four months and is a key opportunity to reinvigorate the PINK brand going forward.

PINK 的銷售趨勢在本季也顯著改善，該品牌的銷售額與去年相比有所增加。特別是在服裝領域，客戶對 8 月份 PINK 返校活動以及 10 月份和第四季度提前假日銷售的反應有所改善，這讓我們深受鼓舞。服裝在過去四個月中經歷了重大的趨勢變化，這是重振 PINK 品牌未來的關鍵機會。

Outside of North America, our international business continued its strong performance in the quarter with system-wide retail sales of mid-teens, driven by growth with our franchise and travel retail partners and in our joint venture in China with our partner, Regina Miracle. During the quarter, I had the opportunity to meet many of our international partners ahead of the VS fashion show.

在北美以外的地區，我們的國際業務在本季度繼續保持強勁表現，全系統零售額達到中位數，這得益於我們的特許經營和旅遊零售合作夥伴以及我們與合作夥伴Regina Miracle 在中國的合資企業的成長。在本季度，我有機會在 VS 時裝秀之前會見了我們的許多國際合作夥伴。

I was inspired by their passion and commitment to our brands and I share their excitement around our sales, profit and growth opportunities around the world. Our sales and financial performance over the last 90 days was driven by several key initiatives aimed at repositioning the business for success in holiday and beyond, including creating meaningful and memorable connections with our customers through the return of PINK Friday the last weekend of July as our collegiate customers headed back to campus and with the celebration of National Underwear Day in early August.

他們對我們品牌的熱情和承諾激勵了我，我也分享了他們對我們在全球的銷售、利潤和成長機會的興奮。我們過去90 天的銷售和財務業績是由幾項關鍵舉措推動的，這些舉措旨在重新定位業務，以便在假期及以後取得成功，包括通過7 月最後一個週末“粉紅星期五”的回歸與我們的客戶建立有意義和難忘的聯繫。

We relaunched VSX, sports done in a uniquely VS way, combining performance, comfort and fashion with innovative designs that leverage body mapping and superior fabrics. VSX is not a collection. It's a lifestyle with adjacent apparel categories that will drive higher shopping frequency and engagement.

我們重新推出了 VSX，以獨特的 VS 方式進行運動，將性能、舒適性和時尚與利用身體映射和優質面料的創新設計相結合。VSX 不是集合。這是一種與相鄰服裝類別相結合的生活方式，將推動更高的購物頻率和參與度。

We kicked off the holiday season with the return of the VS Fashion Show in October, bringing fashion to the screens of millions of viewers around the world. For the first time ever, every look in the show was shoppable, allowing customers to purchase their favorite runway looks from our holiday assortment.

隨著 VS 時裝秀於 10 月回歸，我們拉開了節日季的序幕，將時尚帶到了全球數百萬觀眾的螢幕上。有史以來第一次，秀場上的每個造型都可以購買，顧客可以從我們的節日系列中購買他們最喜歡的秀場造型。

In addition to driving brand awareness leading into holiday, the show drove brand relevance, putting VS at the center of culture and fashion conversations with about 34 billion media impressions, 4 billion social media impressions and an increase of more than 4 million followers on TikTok.

除了在假期前提高品牌知名度外，該節目還提高了品牌相關性，使VS 成為文化和時尚對話的中心，媒體曝光量約為340 億次，社交媒體曝光量達到40 億次，TikTok 上的粉絲數量增加了超過400 萬。

Beauty is critical to our holiday success, and we started the season strong with compelling unique giftables like the Bombshell Advent calendar and limited edition Bombshell midnight holiday fragrance to ensure VS Beauty is at the top of every one holiday wish list.

美麗對我們的節日成功至關重要，我們以引人注目的獨特禮品（如Bombshel​​l 降臨節日曆和限量版Bombshel​​l 午夜節日香水）強勢開啟了這個季節，以確保VS Beauty 成為每個節日願望清單的第一位。

Finally, we continue to further develop our understanding of our Victoria's Secret and PINK customer, through our multi-tender loyalty program, which now has approximately 35 million members who drive over 80% of our sales on a weekly basis.

最後，我們透過多方忠誠度計畫繼續進一步加深對 Victoria's Secret 和 PINK 客戶的了解，該計畫目前擁有約 3500 萬會員，他們每週推動我們銷售額的 80% 以上。

As we look forward, we are excited to see that our momentum from the third quarter continued through Black Friday and Cyber Monday. Our merchandise offering and giftable product assortments are clearly resonating with the customer and driving traffic, both in stores and online. The strong product acceptance supported by our best in-mall in-store experience and dozens of digital enhancements are driving solid conversion and basket size.

展望未來，我們很高興看到第三季的勢頭持續到黑色星期五和網路星期一。我們的商品供應和禮品產品系列明顯引起了客戶的共鳴，並增加了商店和網路上的流量。我們最好的商場店內體驗和數十項數位增強功能所支援的強大產品接受度正在推動穩定的轉換和購物籃規模。

And while more anecdotal, I would be remiss if I didn't mention that as I've traveled stores over the last few weeks, I've noticed ours are often the busiest in the mall. We recognize that we have several large volume days and weeks in front of us in December, and we are encouraged by the positive sales trends quarter-to-date and remain focused on winning each moment in the days ahead.

雖然更多的是軼事，但如果我沒有提到，當我在過去幾週逛過商店時，我注意到我們的商店通常是商場裡最繁忙的。我們認識到，12 月我們將面臨數天和數週的大批量銷售，我們對本季度至今的積極銷售趨勢感到鼓舞，並將繼續專注於贏得未來幾天的每一刻。

For the fourth quarter 2024, we are forecasting net sales to increase approximately 2% to 4% to a comparative 13 weeks from the fourth quarter 2023. Our forecast assumes trends in North America remain relatively consistent with the third quarter, adjusted for the timing impacts and the retail calendar shift. At this forecasted level of sales, fourth quarter 2024 adjusted operating income is now expected to be in the range of $240 million to $270 million.

對於 2024 年第四季度，我們預計淨銷售額將比 2023 年第四季的 13 週成長約 2% 至 4%。我們的預測假設北美的趨勢與第三季保持相對一致，並根據時間影響和零售日曆變化進行了調整。依照這項預測的銷售水平，2024 年第四季調整後的營業收入預計將在 2.4 億美元至 2.7 億美元之間。

For the full year, we are increasing our sales and profit forecast to reflect third quarter outperformance and the positive start to the holiday season in November and early December. We now expect sales for the year to be up approximately 1% to 2% on a comparative 52 weeks from last year.

對於全年，我們提高了銷售額和利潤預測，以反映第三季度的優異表現以及 11 月和 12 月初假期季的積極開局。我們現在預計今年的銷售額將比去年 52 週成長約 1% 至 2%。

At this forecasted level of sales, we now expect adjusted operating income for the year to be in the range of $315 million to $345 million. So in summary, we're pleased with Q3 and optimistic about Q4. Now as promised, at the start of this call, I'd like to share a few observations from my first 90 days. In addition to being focused on executing and winning holiday, I've been listening, learning and thinking deeply about how we can supercharge the best of who we are. Much of my time has been spent with the product and brand teams and traveling to stores meeting our wonderful associates who are true ambassadors for our brands.

依照這項預測的銷售水平，我們現在預計今年調整後的營業收入將在 3.15 億美元至 3.45 億美元之間。總而言之，我們對第三季感到滿意，對第四季感到樂觀。現在，正如承諾的，在本次電話會議開始時，我想分享我在前 90 天的一些觀察。除了專注於執行和贏得假期之外，我還一直在傾聽、學習和深入思考我們如何成為最好的自己。我大部分的時間都花在了產品和品牌團隊身上，並前往商店與我們優秀的同事會面，他們是我們品牌的真正大使。

Everything I've seen and learned so far has made me proud of who we are and confident in our future. As I mentioned previously, the team has established a solid foundation that we can build upon and a business that has momentum and is showing early signs of the growth we all believe is in our future.

到目前為止我所看到和學到的一切都讓我為我們自己感到自豪並對我們的未來充滿信心。正如我之前提到的，該團隊已經建立了一個堅實的基礎，我們可以在此基礎上繼續發展，業務發展勢頭強勁，並顯示出我們都相信未來成長的早期跡象。

I believe our biggest opportunity is to get the best of who we are back at the center of how we work in three ways: number one, the customer making sure she is at the heart of every conversation, every decision, everything we do. We are doing well with our existing loyalty customers but I see opportunity to attract new customers by making sure our brands, products and go-to-market strategies are in sync with the SaaS pace of culture and dialed into the ever-evolving world she lived in.

我相信我們最大的機會是透過三種方式充分發揮我們的作用，成為我們工作方式的中心：第一，客戶確保她是每次對話、每個決定和我們所做的一切的核心。我們在現有的忠誠客戶方面做得很好，但我看到了透過確保我們的品牌、產品和進入市場策略與 SaaS 文化步伐同步並融入她生活的不斷發展的世界來吸引新客戶的機會。

Number two, brand and product. We need to continue to differentiate PINK and Victoria's Secret in every way, from product to marketing to in-store and online experiences. Speaking of PINK, I'm all in, and I see a lot of white space with the brand an opportunity to reclaim our market share in apparel.

第二，品牌和產品。我們需要繼續在各個方面使 PINK 和維多利亞的秘密脫穎而出，從產品到行銷，再到店內和線上體驗。說到粉紅色，我全力以赴，我看到該品牌有很多空白空間，有機會奪回我們在服裝領域的市場份額。

I'm impressed with the work the team has done already to improve the PINK business, and I see opportunity for even more brand clarity and elevation as well as a go-to-market strategy that is mobile first and culturally connected and number three, innovation and brand heat. Victoria's Secret and PINK can and should not only be in the cultural conversation, but also creating cultural moments through products and marketing. We have proven we can do it both with big events like our VSX launch and the return of the fashion show and with viral moments like outfitting Sabrina Carpenter for recurrent tour and our viral [Satin Long] PJ set.

我對團隊為改善 PINK 業務所做的工作印象深刻，我看到了提高品牌清晰度和提升度的機會，以及行動優先、文化聯繫第三的進入市場策略，創新和品牌熱度。維多利亞的秘密和 PINK 不僅可以而且應該參與文化對話，還可以透過產品和行銷創造文化時刻。我們已經證明，我們可以透過 VSX 發布和時裝秀回歸等大型活動，以及為 Sabrina Carpenter 定期巡迴演出和我們的病毒 [Satin Long] 睡衣套裝等病毒時刻做到這一點。

There's a lot of opportunity there, and we have the talent and brands to do it. Customer, brand innovation, watch for us to continue to leverage those areas to grow, deliver shareholder value, and most importantly, delight her. That includes this month as we execute holiday. Thank you. That concludes our prepared comments.

那裡有很多機會，我們有人才和品牌來做到這一點。客戶、品牌創新，請專注於我們持續利用這些領域來實現成長、提供股東價值，最重要的是，讓她高興。這包括本月我們實行的假期。謝謝。我們準備好的評論到此結束。

At this time, we'd be happy to take any questions you may have.

目前，我們很樂意回答您的任何問題。

(Operator Instructions) Simeon Siegel, BMO Capital Markets.

（操作員說明）Simeon Siegel，BMO 資本市場。

Nice job on the progress. So -- from the outside, it kind of feels like a switch has been flipped, but obviously, there's much more to it. So it's amazing to see the residents PINK, Back to Campus, VSX launch, fashion show. But can you speak to the why the seemingly Southern residents? How are you thinking about product versus marketing versus promotions at this point as the brands do appear to be regaining that perception among consumers?

進展順利。所以——從外面看，感覺就像開關被打開了，但顯然，還有更多的事情要做。所以看到居民 PINK、回到校園、VSX 發表會、時裝秀真是太棒了。但你能談談為什麼這些看似南方的居民嗎？鑑於品牌似乎正在重新獲得消費者的這種認知，您如何看待產品、行銷和促銷？

And then I don't know if this is Hillary or TJ, but we've gone back and forth over history with co-located versus independent stores, you're talking about closing, I think, 42, I think there's 35 renovations. You're talking about consolidating the co-located stores. Any color you can share on what you expect that would do to productivity and profitability as that progresses?

然後我不知道這是希拉蕊還是 TJ，但我們已經回顧了歷史上的同地店與獨立店，你說的是關閉，我想，42，我想有 35 次翻修。你說的是整合同地辦公的商店。您可以分享一下您認為隨著這一進程的進展會對生產力和盈利能力產生什麼影響嗎？

Simeon, thanks for the question. I'll start off and then TJ can fill in anywhere that's necessary. So on your first question, Victoria's Secret first. Our brand is about sexy, glamorous, accessible luxury and I think that we were building towards that with the new team that was put in place about 12, 18 months ago, and that was in the works. I think the fashion show really doubled down on that.

西蒙，謝謝你的提問。我先開始，然後 TJ 可以填滿任何需要的地方。關於你的第一個問題，首先是維多利亞的秘密。我們的品牌是關於性感、迷人、平易近人的奢華，我認為我們正在與大約 12、18 個月前成立的新團隊朝著這個方向努力，而這一切都在籌備中。我認為時裝秀確實在這一點上加倍努力。

And when you look at what's working in the business, it is exactly that. It is sexy, glamorous and accessible luxury. In terms of sexy side, it's really the brand -- the bra franchises such as Dream and Wicked and lots of shine in the intimate assortment that is driving that success in beauty. Beauty is very broad-based success. But what's really exciting to me is the upper price points in the beauty assortment.

當你看看這個行業的運作方式時，你會發現確實如此。這是性感、迷人、平易近人的奢華。就性感而言，真正是品牌——Dream 和 Wicked 等胸罩專營權以及內衣系列中的大量光芒推動了美容領域的成功。美麗是非常廣泛的成功。但真正令我興奮的是美容產品系列中的較高價格點。

It's very, very luxury and we're talking $100, $200 plus things that are doing really, really well. And then branded goods. So things that are like literally logo, which, to me, really indicates strong brand health and the heritage Stripe collection, which was in the fashion show and a huge part of our Q4 assortment. It's just incredible. It's a very, very recognizable VS.

這是非常非常奢侈的，我們談論的是 100 美元、200 美元以及做得非常非常好的東西。然後是品牌商品。所以，就像字面上的標誌一樣，對我來說，這確實表明了強大的品牌健康度和傳統的 Stripe 系列，它出現在時裝秀上，也是我們第四季度產品系列的重要組成部分。這真是令人難以置信。這是一款非常非常有辨識度的VS。

And I think perfect -- not a perfect storm because it was very purposeful. But assortment strategy married with marketing strategy married with a big upper funnel event, just really came together in a very powerful way. In terms of PINK, I think we're very much earlier in that trajectory. We've had a few fits and starts, but apparel being the big driver there. And I would say lots of virality through TikTok, driving a lot of our success, a lot of heritage pieces such as the flare and branded [lines].

我認為完美——不是一場完美的風暴，因為它是有目的的。但是，分類策略與行銷策略與大型上漏斗事件相結合，確實以一種非常強大的方式結合在一起。就 PINK 而言，我認為我們在這條軌跡上走得很早。我們經歷過一些斷斷續續的情況，但服裝是其中的主要動力。我想說的是，透過 TikTok 進行了大量的病毒式傳播，推動了我們的成功，許多傳統作品，例如耀斑和品牌[行]。

And then as we moved into holiday, I would say shine in both brands is working across the board. So lots and lots of positive things there. On your second question around stores, this is something that I'm thinking really just a lot about, especially as it relates to PINK and how we've pulled back on PINK. So we've been traveling stores really thinking specifically about that, and we're in the early stages of that.

然後，當我們進入假期時，我想說這兩個品牌的光芒正在全面發揮作用。那裡有很多很多積極的事情。關於你關於商店的第二個問題，這是我經常思考的問題，特別是因為它與 PINK 以及我們如何撤回 PINK 有關。因此，我們一直在拜訪商店，認真思考這一點，而且我們正處於早期階段。

As you know, and we've reported before, store's future has been successful on many, many levels, and the unit economics are quite positive. What I want to make sure is, one, are we delivering on the promise of sexy glamorous and accessible luxury in our store design and maybe thinking about ways that we can power that up a little bit.

如你所知，我們之前已經報道過，商店的未來在很多很多層面上都取得了成功，並且單位經濟效益非常樂觀。我想確定的是，第一，我們是否在商店設計中兌現了性感迷人且觸手可及的奢華的承諾，也許我們正在考慮如何加強這一點。

And then number two, are we allocating the appropriate amount of square footage for each line of business and with PINK specifically, how are we making PINK feel like PINK in those stores that are combined. That's what's on my mind, and I've left anything out, TJ, please feel free.

第二，我們是否為每個業務線分配適當數量的面積，特別是 PINK，我們如何在合併的商店中讓 PINK 感覺像 PINK。這就是我的想法，我遺漏了任何內容，TJ，請隨意。

No, I think you covered most everything we've been thinking about in terms of the future. I'd just say that Tim and to your question, the stores that we are closing this year and the plans that we have for next year, there's really two buckets. There are situations where we're actually just downsizing a store that already has a Victoria's Secret and PINK, but the store was just too big from origination.

不，我認為你涵蓋了我們一直在思考的關於未來的大部分內容。我只想說，蒂姆，對於你的問題，我們今年要關閉的商店和明年的計劃，實際上有兩個方面。在某些情況下，我們實際上只是縮小一家已經有維多利亞的秘密和 PINK 的商店的規模，但該商店從一開始就太大了。

And then there are situations where we're bringing a stand-alone store from Victoria's Secret together with a stand-alone store for PINK and make a combined location. In each of those situations, we are seeing not just a little bit of productivity improvement, we're seeing a significant amount of productivity improvement.

在某些情況下，我們會將維多利亞的秘密 (Victoria's Secret) 的獨立商店與 PINK 的獨立商店合併在一起，並建立一個合併的位置。在每種情況下，我們看到的不僅僅是一點生產力的提高，我們看到的是生產力的顯著提高。

So we may be going from either a standalone or combined situation where we have 15,000 or 18,000 square feet in the mall down to 10 or 12 and seeing, again, a reduction in square footage of could be 25%, 30%, 35% and a productivity improvement that is larger than that and a profit improvement that's meaningful and an operational improvement that's also shouldn't be overlooked in terms of how Becky and the teams can operate a combined location versus multiple.

因此，我們可能會從單獨或合併的情況（商場內的面積為 15,000 或 18,000 平方英尺）減少到 10 或 12 平方英尺，並且再次看到面積可能會減少 25%、30%、35% 和生產力的提高比這更大，利潤的提高是有意義的，而就貝基和團隊如何運作一個聯合地點而不是多個地點而言，營運改善也不應該被忽視。

So there's a lot to like about it. But to Hillary's point, we do want to make sure that whatever we end up with in location, in a store as both brands appropriately sized.

所以它有很多值得喜歡的地方。但就希拉蕊的觀點而言，我們確實希望確保無論我們最終在店內的位置、商店中買到什麼，兩個品牌的尺寸都合適。

Brooke Roach, Goldman Sachs.

布魯克·羅奇，高盛。

Hillary, you spoke about elevating brand (inaudible) through creating the conversation and moving into Flex marketing opportunities. You've also mentioned TikTok a few times here this morning. Can you talk about what we should expect on the evolution of your marketing strategy where might you spend those dollars and the percent of sales that you might spend on marketing over time?

希拉里，您談到了透過創建對話和利用 Flex 行銷機會來提升品牌（聽不清楚）。今天早上你也多次提到了 TikTok。您能否談談我們對您的行銷策略演變的預期，您可能會將這些資金花在哪裡，以及隨著時間的推移，您可能會在行銷上花費的銷售額百分比？

And then just as a follow-up for TJ. Can you talk a little bit more about the promotion plans that you have for holiday if you continue to outperform your plans, what we see in promo plans on a go-forward basis?

然後作為 TJ 的後續行動。如果您繼續超出計劃，您能多談談您的假期促銷計劃嗎？

Thanks, Brooke. Sure, I'll start. So in terms of marketing spend, I wouldn't expect -- I would expect consistent marketing spend as we go forward. So no change there. It's really how we spend and how we bring things to market, and that looks different for Victoria's Secret vs PINK.

謝謝，布魯克。當然，我會開始。因此，就行銷支出而言，我預計隨著我們的前進，行銷支出將保持一致。所以那裡沒有變化。這實際上是我們如何花錢以及如何將產品推向市場的問題，而維多利亞的秘密與 PINK 的情況看起來有所不同。

The first thing that I would say is we need to be using the full funnel, and we need to be meeting the customer where she is, and that may be different for both brands. Victoria's Secret is we are the queen of the launch, and that's not going to go away, but we also need to think about product evangelism in Victoria's Secret, and that's really more of a mid-funnel idea. And then on the lower funnel, lots of segmentation and really thinking about our diverse audience of customers and how to reach them best.

我要說的第一件事是我們需要使用完整的管道，我們需要滿足客戶所在的位置，這對於兩個品牌來說可能有所不同。維多利亞的秘密是我們是產品發布的女王，這一點不會消失，但我們還需要考慮維多利亞的秘密的產品宣傳，這實際上更像是一個漏斗中部的想法。然後在漏斗的下端，進行大量細分，並真正思考我們多樣化的客戶受眾以及如何最好地接觸他們。

As it comes to PINK, I talk about TikTok a lot, and I spend a lot of time on TikTok myself. And that has really changed this customer base and the culture around her. And if you think about the inception of PINK, TikTok wasn't around. And this customer is much more sophisticated than she was at the inception of PINK, and she has access to ideas, fashion and movements in real time.

說到 PINK，我經常談論 TikTok，我自己也花了很多時間在 TikTok 上。這確實改變了這個客戶群和她周圍的文化。如果你想想 PINK 的成立，你會發現 TikTok 還沒出現。這位顧客比 PINK 成立時更成熟，她可以即時了解創意、時尚和動態。

And we need to think about what that means to how we create content, do we need campaigns in PINK and how do we connect to her in an authentic way where she's living and that is online. And so you'll see a shift over time in how we go to market in PINK. And then I think we haven't scratched the surface yet when it comes to collaborations and partnerships, and that's something I'm really interested in doubling down on.

我們需要思考這對我們如何創建內容意味著什麼，我們是否需要用 PINK 開展活動，以及我們如何在她生活的地方和網路上以真實的方式與她聯繫。因此，隨著時間的推移，您會看到我們進入粉紅色市場的方式發生了變化。然後我認為在合作和夥伴關係方面我們還沒有觸及表面，而這是我真正感興趣的加倍努力的事情。

And I think the second part of your question, Brooke, on the promo piece, maybe I'll take third quarter first. I think from a promotional standpoint, we ran the promotions that we intended to from the beginning of the period through Q3. So nothing really changed meaningfully in the plan. But what we saw was the customer response to those promotions was much stronger than originally forecasted. And that contributed to the upside volume and the upside margin dollars.

我認為你問題的第二部分，布魯克，關於宣傳片，也許我會先看第三季。我認為從促銷的角度來看，我們從本季初到第三季都進行了預期的促銷活動。所以計劃中沒有任何真正有意義的改變。但我們看到的是，客戶對這些促銷活動的反應比最初預測的要強烈得多。這推動了成交量和保證金的上漲。

But it did mean that promotions were a little bit more of an impact to the rate. But again, our rate was still well within our range of guidance. As we think about fourth quarter, we actually think the promotional environment for us ought to be pretty flat year over year, meaning the dollars we put towards the promotions, the events we put towards promotions, recognizing we've got a compressed calendar, even -- when we put that all in the mix, we came into the quarter thinking the promotions will be relatively flat in terms of impact.

但這確實意味著促銷對比率的影響更大一些。但同樣，我們的利率仍然完全在我們的指導範圍內。當我們考慮第四季度時，我們實際上認為我們的促銷環境同比應該相當平坦，這意味著我們在促銷上投入的資金，我們在促銷上投入的活動，認識到我們有一個壓縮的日曆，甚至——當我們把所有這些考慮在內時，我們進入本季時認為促銷活動的影響將相對平穩。

Now the strong business in the month of November by Friday, Cyber Monday, the follow-on after Cyber Monday. We've been very encouraged by as we get closer and closer to December 25, as we get closer and closer to ship cutoff in the next 11 days, obviously, we're going to be looking very closely at promotions.

現在，11 月的業務在周五、網路星期一（網路星期一）之前表現強勁。隨著 12 月 25 日的臨近，隨著我們越來越接近未來 11 天內的發貨截止日期，我們感到非常鼓舞，顯然，我們將非常密切地關注促銷活動。

And is there an opportunity maybe to do a little bit less than originally forecasted, just based on the strength of the business. But obviously, we want to be very diligent about that. We want to test our way into that where possible. But I think from a promotional standpoint, relatively flat year over year in the fourth quarter here.

是否有機會根據業務實力做比最初預測少一點的事情。但顯然，我們希望對此非常努力。我們希望盡可能地測試我們的方法。但我認為從促銷的角度來看，第四季同比相對持平。

Having said that, too, I just I want to speak just a moment to fourth quarter margin because I know that some might look at it and say, this is the first time that we've guided the margin rate down a little bit in the quarter for several quarters, first time in several quarters.

話雖如此，我也想談談第四季度的利潤率，因為我知道有些人可能會說，這是我們第一次在第四季度引導利潤率下降一點。季度以來的第一次。

What I want to say on that topic is, first off, the selling margin to what the customer sees, what the customer pays our selling margin will actually be up for the quarter. So the initial markup on goods less the promotions, our selling margin rate will be higher year over year in the fourth quarter. What's pressuring our gross margin rate a little bit in the fourth quarter is really three things.

關於這個主題我想說的是，首先，客戶看到的銷售利潤，客戶支付的銷售利潤實際上會在本季上升。因此，最初的商品加價減去促銷活動，我們第四季的銷售利潤率將比去年同期更高。第四季對我們的毛利率造成一點壓力的實際上是三件事。

First off, the transportation environment, both ocean and air rates are up meaningfully year over year. Last year in the holiday season, we benefited -- or we all benefited as retailers from really trough pricing in transportation rates, rates in Ocean and Air are both up year-over-year.

首先，運輸環境，海運和空運價格均較去年同期大幅上漲。去年的假期，我們受益匪淺——或者說我們作為零售商都受益於運輸費率的真正低谷定價，海運和空運的費率均同比上漲。

Second piece that's impacting margin. The outperformance of the business has us in a place where we think that our incentive or bonus expense in fourth quarter will actually be higher than last year and higher than our plans, which is a good thing for all those people who have been working incredibly hard to get us to this point.

第二部分影響利潤。業務的出色表現使我們認為第四季度的激勵或獎金支出實際上會高於去年並高於我們的計劃，這對於所有那些一直在努力工作的人來說是一件好事讓我們走到這一步。

And the third piece that's pressuring margin a little bit in the quarter, I just remind that last year, in the fourth quarter, we had an extra week of selling and that deleveraging impact on really B&O is a challenge this year. So transportation rates, higher incentive comp and the delayering impact of last year all are offsetting the selling margin good guys, so to speak. So we feel very comfortable with how the teams are executing all of this.

第三個因素對本季的利潤率造成了一些壓力，我只是提醒一下，去年第四季度，我們多了一周的銷售，而去槓桿化對 B&O 的影響是今年的一個挑戰。因此，可以這麼說，運輸費率、更高的激勵補償以及去年的延遲影響都抵消了好人的銷售利潤。因此，我們對團隊執行這一切的方式感到非常滿意。

Again, we've done a significant amount of testing, particularly for Friday and Cyber Monday, which proved to be very insightful and it worked. So I feel like the teams are managing both inventory and margin here really effectively as we point towards the end of fourth quarter and holiday. Hopefully that helps.

我們再次進行了大量的測試，特別是在周五和網路星期一，事實證明這些測試非常有洞察力並且有效。因此，我覺得當我們接近第四季末和假期時，團隊正在非常有效地管理庫存和利潤。希望有幫助。

Alex Straton, Morgan Stanley.

亞歷克斯‧斯特拉頓，摩根士丹利。

Congrats on a great quarter. I wanted to focus on the digital business. It seems like that had some real standout momentum. So curious what you attribute that to and what that percentage of the business can be over time? And then one quick secondary question is just on the recent momentum. Is that driven by like a new customer or existing customer, a combination of both? I'd love some thoughts on that as well.

恭喜您度過了一個出色的季度。我想專注於數位業務。看起來這確實有一些引人注目的勢頭。很好奇您將其歸因於什麼以及隨著時間的推移，該業務的百分比會是多少？然後一個快速的次要問題就是關於最近的勢頭。這是由新客戶還是現有客戶（兩者的結合）所驅動的？我也很想對此有一些想法。

Yes. I'll take the first part of that and then ask Hillary to chime in. I think from a digital perspective, Alex, I think whether it's digital or stores, it all starts with product. And as Hilary mentioned in her opening comments, the strength of assortment year over year that the team has created I mean, you know from following us for a while, we've been really, really looking forward to third quarter when a lot of this newness which showed up in a meaningful way, drove results, more newness in terms of what the new team has delivered in fourth quarter. Obviously, it is working for us.

是的。我會先講第一部分，然後請希拉蕊插話。我認為從數字角度來看，亞歷克斯，我認為無論是數位還是商店，一切都始於產品。正如希拉蕊在開場白中提到的那樣，團隊創造的品種逐年增加，我的意思是，通過一段時間的關注你就知道，我們真的非常期待第三季度，當時很多這樣的東西新鮮感以一種有意義的方式出現，推動了結果，就新團隊在第四季交付的成果而言，更多的新鮮感。顯然，它對我們有用。

So it all starts with product. I think additionally, from a digital perspective, we've made multiple quarters in a row now of investments in people and process and technology to help drive the digital business.

所以一切都從產品開始。此外，我認為，從數位角度來看，我們已經連續多個季度對人員、流程和技術進行投資，以幫助推動數位業務。

Just in the last quarter, a couple of big engagement opportunities that went live for us was really badging on our site, keeping these signed in on our site, things like that, that it both improve not just the conversion on the site, but drive an average basket size. And then I'd be remiss if I didn't mention from a traffic perspective, we don't talk a lot about this, but we brought some of our media buying and media operations in-house.

就在上個季度，我們的網站上出現了一些重大的參與機會，讓這些機會在我們的網站上保持登入狀態，諸如此類，它不僅可以提高網站的轉換率，還可以提高網站的轉換率。籃子大小。如果我沒有從流量的角度提到，那就是我的失職了，我們對此談得不多，但我們將一些媒體購買和媒體運營帶到了內部。

So we brought it back from a third-party provider, brought it in-house. We believe we're seeing a much more efficient spend and better traffic results as a result of that.

因此，我們從第三方提供者將其帶回內部。我們相信，我們將因此看到更有效率的支出和更好的流量結果。

And then obviously, at the end of October, traffic from the holiday set and the fashion show both were meaningful, strong moments for the digital business as well as the stores. I don't want to short change at all. We're seeing, as Hillary mentioned, significant traffic in our stores. We are outperforming mall traffic on a meaningful basis day after day, week after week, we see that data live as it's happening. So we know we're getting better traffic off the mall than the balance of the mall.

顯然，在 10 月底，假日場景和時裝秀的流量對於數位業務和商店來說都是有意義的、強勁的時刻。我根本不想少找零錢。正如希拉蕊所提到的，我們看到我們商店的客流量很大。日復一日、週復一周，我們在有意義的基礎上跑贏了購物中心的客流量，我們看到這些數據是即時發生的。所以我們知道商場外的客流量比商場內的客流量好。

So a lot to like about the digital business, which was your original question. But also from a stores perspective, I guess from a customer point of view, whether it's new versus existing customers, you may recall last year, around June 1, we launched our loyalty program -- and we now have over 35 million members in that program.

對數位業務有很多喜歡的地方，這是你最初的問題。But also from a stores perspective, I guess from a customer point of view, whether it's new versus existing customers, you may recall last year, around June 1, we launched our loyalty program -- and we now have over 35 million members in that程式.

So in a very short period of time, we've built a very large base of customers that make up over percent of our sales on any given week. We're seeing that customer that's more of an existing customer at the moment, shop more often and spend more when she comes. That's a good formula for a successful launch of the loyalty program. And then most recently, some of the market data insights that we get back from the team, particularly in the month of October suggests that we saw new customer growth for really the first time in several months.

因此，在很短的時間內，我們已經建立了一個非常龐大的客戶群，這些客戶群占我們每週銷售額的百分比以上。我們發現該客戶目前更多的是現有客戶，購物更頻繁，並且在她來時花費更多。這是成功啟動忠誠度計劃的一個很好的公式。最近，我們從團隊中獲得的一些市場數據見解，特別是在 10 月份，顯示我們幾個月來第一次看到新客戶的成長。

So a long way of getting there, but what I'm trying to paint for you, Alex, is a picture of breadth across multiple things that the business is doing well, not just one thing.

要實現這一目標還有很長的路要走，但亞歷克斯，我想為你描繪的是一幅涵蓋業務做得很好的多件事的廣度圖，而不僅僅是一件事。

Just one thing I would add there. I've been very anxious to get our customer and brand health data. I think it's going to take a little bit of time for us to get a very clear picture on that. But I personally am seeing a lot of younger customers shopping in our stores, particularly in the Victoria's Secret store.

我只想補充一件事。我一直非常渴望獲得我們的客戶和品牌健康數據。我認為我們需要一些時間才能對此有一個非常清晰的了解。但我個人看到很多年輕顧客在我們的商店購物，特別是在維多利亞的秘密商店。

And we just received our brand equity results for the month of November, and we saw a very clear uptick uptick with Gen-Z on both consideration and brand equity. And that, to me, is just incredibly exciting, and we will be monitoring this and reporting on this as we move forward.

我們剛收到 11 月份的品牌資產結果，我們看到 Z 世代在考慮度和品牌資產方面都有非常明顯的上升。對我來說，這真是令人興奮不已，我們將在前進過程中監控並進行報告。

Ike Boruchow, Wells Fargo.

艾克·博魯喬（Ike Boruchow），富國銀行。

Two questions. First for Hillary, you talked about a lot of change over the last four months in apparel, which I assume predominantly talks to PINK. Can you just give us a little bit more insight on what changes in KPIs you've seen that's given you renewed confidence.

兩個問題。首先，希拉里，您談到了過去四個月服裝方面的許多變化，我認為這主要是針對 PINK 的。您能否讓我們更深入地了解您所看到的 KPI 的哪些變化讓您重拾了信心。

And then on TJ, real quick, just I'm trying to understand the adore payments that are being made this year, I think it's like $200 million -- I'm just trying to make sure I understood. Is that because of the business is outperforming? How should we think about that impacting cash flow? And then is there more payments in future years if the business continues to outperform.

然後在 TJ 上，很快，我想了解今年的愛支付情況，我想大概是 2 億美元——我只是想確保我理解了。是因為業務表現優異嗎？我們該如何看待這對現金流的影響？如果業務繼續表現出色，未來幾年是否會有更多付款。

You're a little hard to hear. I think you asked me about apparel and what we're learning there. I would point to a couple of things. In the Victoria's Secret brand, I would point to the launch of VSX, incredibly successful launch, I think, a very modern go-to-market strategy, and I would say we know that when we have great complementary apparel product, it increases frequency and engagement with the brand.

你說話有點難聽。我想你問我關於服裝以及我們在那裡學到的東西。我想指出幾件事。在維多利亞的秘密品牌中，我會指出 VSX 的推出，我認為這是一個非常成功的上市策略，我想說的是，我們知道，當我們擁有出色的互補服裝產品時，它會增加頻率以及與品牌的互動。

So that's something, whether it's a swim adjacent apparel, whether it's lounge adjacent apparel, whether it's sport, it's something we're very interested in dialing up really complementing the rest of the assortment to drive that frequency and engagement.

所以，無論是與游泳相關的服裝，無論是與休閒相關的服裝，還是與運動相關的服裝，我們都非常有興趣將其與其他品種進行真正的補充，以提高頻率和參與度。

In PINK, apparel -- certain apparel categories are doing very well. And I would say, when you look back to the real heydays of PINK, it was apparel-led. And over time, we have become more intimate led in apparel, and I think we have extraordinary opportunity in PINK to broaden our lens in apparel and not just be singularly collegiate. And so that's something I'm very interested in moving forward.

在粉紅色領域，服裝－某些服裝類別表現非常好。我想說的是，當你回顧 PINK 真正的鼎盛時期時，你會發現它是以服裝為主導的。隨著時間的推移，我們在服裝領域的領導關係變得更加親密，我認為我們在 PINK 中擁有絕佳的機會來拓寬我們在服裝領域的視野，而不僅僅是單一的學院派風格。所以這是我非常有興趣推進的事情。

And then I think beyond apparel, we have a huge accessory and beauty opportunity in PINK. So those -- so really diversifying our assortment building a full lifestyle brand and creating that a motive interesting content for the Gen Z customer, I think, will be very important as we move forward.

然後我認為除了服裝之外，我們在粉紅色方面還有巨大的配件和美容機會。因此，我認為，在我們前進的過程中，真正使我們的品類多樣化、建立一個完整的生活方式品牌並為 Z 世代客戶創造有趣的內容將非常重要。

And the second part to your question, the Adore Me payments contingent payment structure. You may recall there were three contingent payment items, one, based on technology synergies, one more of a fixed component around continuation of employment and the third around actual performance against two different targets, sales and EBITDA over the two-year period, so '23 and '24.

您問題的第二部分是 Adore Me 付款或有付款結構。您可能還記得有三個或有付款項目，一是基於技術協同效應，二是圍繞繼續僱用的固定組成部分，三是圍繞兩年期內兩個不同目標（銷售額和EBITDA）的實際績效，因此「 23 和 24。

What I think your question is referring to the roughly $200 million that is included in our cash flow forecast for the fourth quarter and for the full year. that will go out in January. Those two payments are based on: a, the fixed component, which I mentioned, which is more continuation of employment and; b, the completion of the technology synergies that were originally set out at the beginning of the acquisition or at close on acquisition.

我認為你的問題指的是我們第四季和全年現金流預測中包含的大約 2 億美元。將於一月上市。這兩項付款是基於：a，我提到的固定部分，即更多的就業延續； b、完成收購之初或收購結束時最初設定的技術綜效。

So that's the $200 million fourth quarter included in our guidance included in our forecast. The performance aspect against sales and EBITDA targets, that payment would occur in the first quarter of 2025 in and around the month of March.

這就是我們的預測中包含的第四季 2 億美元的營收。就銷售業績和 EBITDA 目標而言，付款將在 2025 年第一季 3 月左右進行。

And the reason for that is really we do need year-end results from the business, and we do need a chance to review those audit those. However, we proceed there to evaluate how the business ultimately did against the target. So that's why the timing on that payment could be different.

原因是我們確實需要業務的年終業績，而且我們確實需要有機會審查這些審計結果。然而，我們會繼續評估業務最終如何實現目標。這就是為什麼付款時間可能會有所不同。

So January included in our forecast on the first two synergies -- the third synergy would be in first quarter, depending on the final outcome of performance.

因此，一月份包括在我們對前兩個協同效應的預測中——第三個協同效應將發生在第一季度，具體取決於最終的業績結果。

Matthew Boss, JPMorgan.

馬修‧博斯，摩根大通。

Hillary, can you elaborate on driving the balance between top line growth and gross margin expansion? Or with promotions expected flat to slightly down in the fourth quarter on 2% to 3% top line growth, do you see this as a potential multiyear inflection in the model? And to that point, TJ, what do you see as the potential markdown recapture opportunity as we think about maybe next year? Or any change to the 39% to 40% gross margin by FY26 as a target?

希拉里，您能否詳細說明如何推動營收成長和毛利率擴張之間的平衡？或者，預計第四季度的促銷活動將持平或略有下降，收入成長 2% 至 3%，您是否認為這是該模型中潛在的多年拐點？就這一點而言，TJ，您認為我們明年可能會考慮的潛在降價重新抓住機會是什麼？或 2026 財年 39% 至 40% 的毛利率目標有何改變？

Sure. I'll start there. We are absolutely looking for opportunities anywhere we can to be less promotional and more brand forward. And I think we are getting to a place where the product is starting to stand on its own and the storytelling is starting to stand on its own, particularly in the Victoria's Secret brand. We will be looking for any opportunity possible.

當然。我將從這裡開始。我們絕對在盡可能地尋找機會，減少促銷，提高品牌知名度。我認為我們正處於產品開始獨立、故事敘述開始獨立的階段，特別是在維多利亞的秘密品牌中。我們將尋找任何可能的機會。

And I passionately want to lead this brand as these brands as brand first brands. And that will take some time, and that will take some experimentation. If I think about the third quarter into the fourth quarter, there was a lot of unknown over the past few months. We had an election. We had a shorter selling season, and we made some choices to keep our promotional strategy flat to last year really thinking that we wanted to bank what we could as early as we could.

我熱切地希望領導這個品牌，就像這些品牌一樣，成為品牌第一品牌。這需要一些時間，也需要一些實驗。如果我想想第三季到第四季度，過去幾個月有很多未知因素。我們進行了選舉。我們的銷售季節較短，我們做出了一些選擇，以保持我們的促銷策略與去年持平，我們真的認為我們希望儘早存入我們能存入的資金。

And what we found was that we banked more than we expected, and we found that the big days were bigger than we expected and that we didn't fall off in between. So as we move into December and into January, we'll be looking for opportunities to be less promotional I think our seasonal -- our semi-annual sale will have opportunities there.

我們發現，我們的銀行存款比我們預期的要多，而且我們發現重要的日子比我們預期的要大，而且我們在這段期間並沒有跌倒。因此，當我們進入 12 月和 1 月時，我們將尋找減少促銷的機會，我認為我們的季節性 - 我們的半年度促銷將有機會。

And as we strengthen our messaging as we strengthen our cultural relevance, we will absolutely be looking for that opportunity. And I think it will be a journey, and we all know this isn't an easy work. but it's something we're very committed to. And I'm quite frankly, I'm excited about.

當我們加強我們的文化相關性時，我們絕對會尋找這個機會。我認為這將是一個旅程，我們都知道這不是一件容易的事。但這是我們非常致力於的事情。坦白說，我很興奮。

Yes. I think the second part of your question, Matt, Hillary just kind of touched on it. I think we all believe that there's an opportunity as we look to 2025 to test our way into more effective promotions and what could end up being certainly better margin dollars, better margin rate. We see that as an opportunity. I think historically, we've talked about when the business was hitting on all cylinders, the discount rate was in the high 30s.

是的。我認為你問題的第二部分，馬特，希拉蕊只是觸及了這個問題。我認為我們都相信，展望 2025 年，我們有機會測試更有效的促銷方式，最終肯定會獲得更好的利潤、更好的利潤率。我們認為這是一個機會。我認為從歷史上看，我們討論過當業務全速前進時，折扣率高達 30 美元以上。

And when the business is more challenged and has to be more promotional, it can be in the low 40s or mid-40s. So I'm not forecasting where I think we are going to end up for this year or where we'll go for next year. But just to kind of dimensionalize it for you, there is a meaningful difference. I also want to underline what Hillary mentioned around the big days being bigger and that really was a benefit to us in the third quarter at the cost of a little bit of rate. But the outcome at plus 7% and the margin dollar growth at plus 8% or plus 9% and leveraging the good cost work that's been done.

當業務面臨更大挑戰並且必須進行更多促銷時，它可能會在 40 多歲或 40 多歲左右。因此，我不會預測我們今年的最終結果或明年的進展。但只是為了給你一個維度化，這是一個有意義的差異。我還想強調希拉蕊提到的關於大日子變得更大的事情，這確實對我們在第三季帶來了好處，但代價是一點點費率。但結果是+ 7％，利潤率增長為+ 8％或+ 9％，並利用了已經完成的良好成本工作。

Obviously, the flow-through was quite strong in the 30s. So really, real good trade-offs that we're missing. And I think to -- just to go a little bit deeper, when we say big days being bigger, what we're also seeing is when we get outside of those big days, that our base business is solid and getting stronger. And that's very encouraging as we move forward. And I think really goes back to product really goes back to strength of execution.

顯然，20世紀30年代的流通量相當強勁。所以我們確實缺乏真正好的權衡。我認為，更深入一點，當我們說大日子變得更大時，我們也看到，當我們走出那些大日子時，我們的基礎業務是穩固的並且變得更加強大。當我們前進時，這非常令人鼓舞。我認為真正回到產品，真正回到執行力。

It wasn't that long ago in prior quarters where we would have moments where we were promotional and we got a result only to give it back in the weeks following. That's not what's happening in our business today, and that might be one of the more encouraging parts of what we're seeing here in the holiday season. So a lot to come, but encouraged that we have this opportunity in front of us.

就在不久前，在前幾個季度，我們也會有促銷的時刻，但我們得到的結果只是在接下來的幾週內才回來。這不是我們今天業務中發生的情況，這可能是我們在假期期間看到的更令人鼓舞的部分之一。還有很多事情要做，但我們很高興能有這個機會。

Does that conclude your question, Matthew?

馬修，你的問題就這樣結束了嗎？

Great, thanks, best of luck.

太好了，謝謝，祝你好運。

Dana Telsey, Telsey Group.

達納‧特爾西，特爾西集團。

Nice to see the progress. Hillary, in your assessment of the stores as you've gone around the country, as you look at the classification, the space allocation, what do you see as the opportunities going forward? And with the store of the future, are there any new visions that you have to enhance what's been there already? And just lastly, can you remind us about China manufacturing and sourcing given what could be tariffs coming up?

很高興看到進展。希拉里，在您對全國各地商店的評估中，當您查看分類、空間分配時，您認為未來的機會是什麼？對於未來的商店，您是否有任何新的願景需要增強現有的商店？最後，考慮到可能出現的關稅，您能否提醒我們有關中國製造和採購的情況？

Dana, thanks. I'll start and then pass it to TJ.

達納，謝謝。我將開始，然後將其傳遞給 TJ。

I've been in lots and lots of stores in multiple states over the past few weeks and months. I think Store of the Future overall looks great, and it's a proud brand moment. It really lets products sing. I think some of the things that we're talking about really is around space allocation. We pulled PINK back pretty aggressively, and we did that because the trend wasn't there. But what we know about Gen Z is that she likes an in-real-life experience sometimes.

在過去的幾週和幾個月裡，我去過多個州的許多商店。我認為未來商店整體看起來很棒，這是一個令人自豪的品牌時刻。它確實讓產品唱歌。我認為我們正在討論的一些事情實際上是圍繞著空間分配的。我們非常積極地撤回了粉紅色，我們這樣做是因為這種趨勢不存在。但我們對 Z 世代的了解是，她有時喜歡現實生活中的體驗。

And so I think there is an opportunity to ensure that as we are condensing particularly in the locations where there's a shop-in-shop rather than a side-by-side that we're really scrutinizing that. And as I think about the product assortment for PINK in the future, it will -- it will be more balanced towards apparel, and we will need some space for that, and we will need a different experience for that.

因此，我認為有機會確保，當我們在特別是在店中店而不是並排店的地方進行集中時，我們會真正仔細審查這一點。當我考慮未來 PINK 的產品種類時，它會——它將更加平衡於服裝，我們將需要一些空間，為此我們需要不同的體驗。

So that is work that we need to do. And I think we're all pretty excited to do that work. As it relates to the rest of the assortment, I think VS feels good in the store. I think beauty could feel a little more elevated in our store of the future. When I think about our positioning of accessible luxury and beauty really being a big piece of that, I think we can do some tweaks there to make that feel like a more elevated experience.

這就是我們需要做的工作。我認為我們都對這項工作感到非常興奮。與其他品種相關，我認為 VS 在商店裡的感覺很好。我認為，在我們未來的商店裡，美感可能會更高一些。當我想到我們對觸手可及的奢華和美麗的定位確實是其中的重要組成部分時，我認為我們可以在那裡做一些調整，使之感覺像是一種更高級的體驗。

And then I just think the two brands when they are on a side-by-side, they need to feel different and yet connected. And I think there's a little bit of work to do there. And it's something that we're all really excited to do. And I would say that we're really thinking about is the pace of remodel the right pace or not. Can we accelerate it? Are there places where we can go faster. Those are all questions we're asking ourselves right now as we think about future budgets.

然後我只是認為當兩個品牌並排時，它們需要感覺不同但又相互聯繫。我認為這方面還有一些工作要做。這是我們都非常興奮的事情。我想說的是，我們真正考慮的是改造的步伐是否正確。我們可以加速它嗎？有沒有我們可以走得更快的地方。這些都是我們在考慮未來預算時正在問自己的問題。

I think the second part of your question, Dana, the large, large, large majority of our product comes from three countries, Vietnam, Sri Lanka and Indonesia. Specifically, your question on China, that's a single-digit number for us. which includes some apparel and some beauty. It also includes some China for China product.

我認為你問題的第二部分，達納，我們的大部分產品來自三個國家：越南、斯里蘭卡和印尼。具體來說，你關於中國的問題對我們來說只是個位數。其中包括一些服裝和一些美容。它還包括一些“中國為中國”的產品。

So even all of that product that's being made in China isn't necessarily even coming to the US in all occasions. A couple of other countries that have been topically mentioned, both Canada and Mexico are less than 1%. And for us. So I think the teams over time, the teams have done a very effective job of deemphasizing the impact of where product comes from China and putting it in other locations around the world. So hopefully, that helps with your question.

因此，即使所有在中國製造的產品也不一定在所有情況下都會銷往美國。其他幾個被廣泛提及的國家，加拿大和墨西哥均低於 1%。對於我們來說。因此，我認為隨著時間的推移，團隊已經做了非常有效的工作，淡化了產品來自中國的影響，並將其放置在世界其他地方。希望這對您的問題有所幫助。

Adrienne Yih, Barclays.

艾德麗安‧易 (Adrienne Yih)，巴克萊銀行。

Great. Hillary, I was wondering if you can talk to us about customer reactivations. I'm really interested what you had said that you were seeing a younger customer come in. And I think that's the key to kind of consumer in this day and age that Gen Z. So reactivation of existing customers and then what source are you getting the new customers from -- and then, TJ, just a clarification on the comment that you made on discount rate. I think that's -- there's a huge differential between the normalized and when you are highly promotional. Does that include clearance? Or are you only talking about the percent at reg price to promo.

偉大的。希拉里，我想知道您是否可以與我們討論客戶重新啟動的問題。我真的很感興趣你所說的你看到一位年輕顧客進來了。我認為這是當今時代 Z 世代消費者的關鍵。我認為，正常化和高度促銷之間存在巨大差異。這包括清關嗎？或者您只是談論促銷價格的百分比。

Adrienne, customer reactivations are probably largely not Gen Z. Gen Z are mostly new customers. And when I stand back and look at it, I think that the fashion show introduced us to a new generation of consumers. We weren't on that radar, we hadn't been in the cultural conversation. And I think we came in we came in and surprised her, and she was like, oh, I'm going to pay attention to this.

Adrienne，重新啟動的客戶可能很大程度上不是 Z 世代。當我退後一步看它時，我認為時裝秀向我們介紹了新一代消費者。我們沒有受到關注，也沒有參與文化對話。我認為我們進來讓她感到驚訝，她說，哦，我會注意這個。

And so we are engaging with an entirely new generation of young women who are saying to us, we want big hair, we want more glamor. We want more shine. We want more of it. We want all of it, and that's exciting because we know how to do that. So for me and what I've seen so far, and I do think we have a lot more work to do on this as we start to read some of the data over the next quarter. It's the new customer.

因此，我們正在與全新一代的年輕女性接觸，她們對我們說，我們想要濃密的頭髮，我們想要更多的魅力。我們想要更多的光澤。我們想要更多。我們想要這一切，這很令人興奮，因為我們知道如何做到這一點。因此，對於我和迄今為止所看到的情況而言，我確實認為，隨著我們開始閱讀下個季度的一些數據，我們在這方面還有很多工作要做。這是新客戶。

And the reactivated customer just is a more millennial or even Gen X, but we are focused on this Gen Z customer, in particular, and it really thrills me that she's noticing us.

重新啟動的客戶只是千禧世代甚至 X 世代，但我們特別關注 Z 世代客戶，她注意到我們真的讓我很興奮。

I think, Adrienne, on the second part of your question, I would just say the discount rate call out is more general in nature. I'm not going to go into the kind of components of that. But that would include our promotional events in-store.

艾德麗安，我想，關於你問題的第二部分，我只想說折扣率的調出本質上更普遍。我不打算討論其中的組成部分。但這包括我們店內的促銷活動。

It would include box promotions, meaning if we run a buy to get to or something like that, it would include our SaaS performance semi-annual sale performance, our mid-season sale performance, things like that. So it's more of an all-inclusive number.

它將包括盒裝促銷，這意味著如果我們進行購買或類似的活動，它將包括我們的 SaaS 績效、半年度銷售績效、我們的季中銷售績效等。所以它更像是一個包羅萬象的數字。

Now how -- having said that, I think we believe there might be a little bit of opportunity in all of those areas. So I think it's the appropriate compare.

話雖如此，我認為我們相信所有這些領域都可能存在一些機會。所以我認為這是合適的比較。

Fantastic. And then, Hillary, one last one. Historically, back in the day, Victoria's Secret, with node for to see systematic Bra launch, Bra franchise launches, the newness and kind of really having almost a seasonal kind of cadence to that. Can you talk about kind of what you've learned when you kind of go back into the archives and are thinking about kind of how to execute that going forward.

極好的。然後，希拉里，最後一位。從歷史上看，回到過去，維多利亞的秘密，有一個節點可以看到系統性的文胸發布，文胸特許經營權的發布，新穎性和幾乎具有季節性的節奏。您能否談談當您返回檔案並思考如何執行該操作時學到的東西。

Yes. I'm actually glad you asked about that. Innovation was just the core core core of our business in those days. And I think over the past few years, it hasn't been as big of a focus. And so that is something that we are absolutely doubling down on something that Anne or had merchant talks a lot about and rightly so.

是的。我真的很高興你問這個問題。創新只是我們當時業務的核心核心。我認為在過去的幾年裡，它並沒有成為人們關注的焦點。因此，我們絕對要在安妮或商人經常談論的事情上加倍努力，這是正確的。

And I think the way that works is different in today's world. I think there's a lot more co-creation. There's a lot more driven with factory partnerships and the way we get work done is different, but bringing innovation back to the center of how we work is critical, and these launches are critical to our business and we are committed to that and committed to be the leaders in the intimate global intimate space and to be first to market on these new ideas. And so you'll see that in the years to come. Thank you.

我認為當今世界的運作方式有所不同。我認為還有更多的共同創作。工廠合作夥伴關係有更多的驅動力，我們完成工作的方式也有所不同，但將創新帶回我們工作方式的中心至關重要，這些發布對我們的業務至關重要，我們致力於這一點並致力於成為全球親密空間的領導者，並率先將這些新想法推向市場。所以你會在未來幾年看到這一點。謝謝。

Jungwon Kim, TD Cowen.

金正元，TD 考恩。

Just wanted to get more thoughts around the beauty business, how large is beauty now and where do you think that business could evolve over time? And also would love any comments on Adore Me, how that has performed and where you see that particular brand going forward?

只是想對美容行業有更多的想法，美容行業現在有多大，您認為隨著時間的推移，美容行業可以發展到什麼程度？並且還希望對 Adore Me 有任何評論，它的表現如何以及您認為該特定品牌的未來發展如何？

Sure. I'll start with beauty. Beauty is our strongest business. We just had our largest quarter to date on record for Q3. So incredible, incredible results, incredible brand love there. I watched customers over Black Friday, engaging in beauty in a way that was just incredible to see. It is primarily driven by the Victoria's Secret brand. And yet, I still think there's tons of opportunity to think about beauty differently and add on lots of new ideas.

當然。我先從美麗開始。美麗是我們最強的事業。我們剛剛迎來了有史以來最大的第三季季度業績。如此令人難以置信、令人難以置信的結果、令人難以置信的品牌熱愛。我在黑色星期五觀察顧客，以一種令人難以置信的方式參與美容。它主要是由維多利亞的秘密品牌推動的。然而，我仍然認為有很多機會以不同的方式思考美麗並添加許多新想法。

And PINK is relatively young in its beauty journey. And I think tons of opportunity there, if I think about beauty and I'll go back to social commerce and the TikTok generation, there is so much that happens in beauty on social commerce, and I think that's very important for PINK as we move forward. So while the beauty business is super healthy, lots of brand equity there. I think there's still a very long runway.

而PINK在其美麗歷程中相對年輕。我認為那裡有很多機會，如果我想到美容，我會回到社交商務和 TikTok 世代，社交商務上的美容領域發生了很多事情，我認為隨著我們的發展，這對 PINK 來說非常重要向前。因此，雖然美容行業非常健康，但那裡有大量的品牌資產。我認為還有很長的路要走。

Yes. And the second part of your question, Dana, the Adore Me business, we did have growth in the dorm business during the third quarter, top line revenue up mid- to high single digits. The daily look brand, which is more focused on home, try-on and apparel, outperformed the Adore Me or the lingerie (inaudible) brand, but that is the flexibility of the model that they have created to be able to move marketing dollars between the two channels and whatever is working best.

是的。你問題的第二部分，Dana，Adore Me 業務，我們在第三季的宿舍業務確實有所成長，營收成長了中高個位數。日常造型品牌更專注於家居、試穿和服裝，其表現優於 Adore Me 或內衣（聽不清楚）品牌，但這就是他們創建的模型的靈活性，能夠在不同品牌之間轉移行銷資金。個頻道以及任何效果最好的管道。

So volume up mid- to high single digits, profitable for the quarter and I think well positioned as we move into the holiday selling season. here in October, November for that business.

因此，成交量達到中高個位數，本季度盈利，我認為隨著我們進入假日銷售季節，我們處於有利地位。十月、十一月來這裡做那件事。

Mauricio Serna, UBS.

毛里西奧·塞爾納，瑞銀。

Great. Congratulations on the results. Could you talk -- if you talk are you seeing in the sports rock category and what your opportunities are in that segment? And also your overall view on the internal target, it seems that it's been down. So as you -- just wondering are you seeing any improvement in the next couple of quarters? And then also, could you give us what you're seeing in China just giving the macro environment?

偉大的。祝賀結果。您能談談嗎？還有你對內部目標的整體看法，似乎有所下降。那麼，您只是想知道在接下來的幾個季度中您是否看到任何改進？另外，您能否介紹一下您在中國所看到的宏觀環境？

Sure. I'll start, and then TJ can finish up. Our sports bra launch, we launched this year was very successful. We've picked up some market share this year, and we're really happy with that, but we think we just scratched the surface. We pulled back as a brand on sports bras, when sports bras were taking off.

當然。我先開始，然後 TJ 來完成。我們今年推出的運動內衣非常成功。今年我們獲得了一些市場份額，我們對此感到非常滿意，但我們認為我們只是觸及了表面。當運動胸罩蓬勃發展時，我們撤回了運動胸罩品牌。

And so we have some market share that's due to us, and we intend to claim it. Sports bras are just one option in her bra library, and she's wearing them more frequently in sort of like non-active capacities. So we intend to go after that business. The intimates market is a little soft, and I think the way women engaged with bras specifically is a little bit differently. We're hearing from the younger generation that she's wearing them more selectively, she's wearing different kinds of them.

因此，我們擁有一些應得的市場份額，我們打算佔領它。運動胸罩只是她胸罩庫中的一種選擇，而且她在非活動場合更頻繁地穿著它們。所以我們打算繼續從事這項業務。內衣市場有點疲軟，我認為女性對胸罩的具體使用方式有點不同。我們從年輕一代聽說，她穿得更有選擇性，她穿的是不同類型的衣服。

She's wearing sports bras. And so it's our job to create such compelling emotional product and storytelling that she must have our bras, and I think we're on our way to doing that. We have proof points throughout our business right now, where we are doing that.

她穿著運動胸罩。因此，我們的工作就是創造如此引人注目的情感產品和故事敘述，讓她必須擁有我們的胸罩，我認為我們正在努力做到這一點。我們現在在整個業務中都有證據，我們正在這樣做。

And then I think that's also where the complementary categories come in with frequency and excitement and emotion and it's really the whole experience of our brand that brings her to us, and I feel like the team is very well positioned to deliver on all of those things.

然後我認為這也是互補類別出現的頻率、興奮和情感的地方，這確實是我們品牌的整個體驗將她帶到了我們這裡，我覺得團隊非常有能力實現所有這些事情。

And I think the last part to your question, Mauricio, if I understood it correctly, China. So we continue to be very excited about our opportunities in the market in China -- we believe we have the right team. We believe we have the right partner in the Regina Miracle team.

我認為毛里西奧，如果我理解正確的話，你問題的最後一部分是中國。因此，我們仍然對中國市場的機會感到非常興奮——我們相信我們擁有合適的團隊。我們相信，Regina Miracle 團隊是我們合適的合作夥伴。

We did see growth in China in the third quarter, more so on digital, but we are also seeing some very encouraging trends of late at stores or in stores. The digital growth, as we mentioned in our prepared comments, the major, major event of Singles Day actually moved into -- largely moved into third quarter this year out of fourth quarter last year.

我們確實看到了第三季中國市場的成長，尤其是數位化的成長，但我們也看到了最近在商店或商店中的一些非常令人鼓舞的趨勢。正如我們在準備好的評論中提到的那樣，數位成長實際上從去年第四季轉移到了今年第三季。

So that was certainly a helper in that regard. But I think the market continues, will continue to be a challenge maybe for the foreseeable future, but I have a lot of visibility into what's happening with our joint venture there in China, and I'm confident we're on the right issues. And as I mentioned before, doing a lot of product that is China for China and having the right partner in the region is certainly a helper as well.

所以這在這方面無疑是個幫助者。但我認為市場仍在繼續，也許在可預見的未來仍將是一個挑戰，但我對我們在中國的合資企業正在發生的事情有很多了解，我相信我們正在處理正確的問題。正如我之前提到的，為中國做很多中國產品，並在該地區擁有合適的合作夥伴無疑也是一個幫助。

Thanks, Mauricio. Okay. So that concludes our call this morning. Thank you for your continued interest and time in VS. Have a great day. Thanks, everyone.

謝謝，毛里西奧。好的。我們今天早上的電話會議到此結束。感謝您對 VS 的持續關注與投入。祝你有美好的一天。謝謝大家。

Thank you for participating in the Victoria's Secret in company's third-quarter 2024 earnings conference call. That concludes today's conference. Please disconnect at this time and enjoy the rest of your day.

感謝您參加維多利亞的秘密公司 2024 年第三季財報電話會議。今天的會議到此結束。請此時斷開連線並享受剩下的一天。