Q3 2019 Earnings Call
Due to the convincing center this call may be recorded and monitored for quality and training purposes.
These hold for the next available operator.
Your conference I'd number.
Hi, It is still.
Twonine 693 won eight.
Okay and your name.
It's Rachel are a C.H.T.O. Smith.
Your company.
Era.
Yeah I E R E.
Your email.
Sure It's written show.
<unk> era.
Outcome.
[noise].
Connect you.
Thank you.
[noise].
Oh.
Oh, the limited the company's without <unk> issued their news there. So this is earlier today and have been posted online you can download the earnings press release and set up to the Companys email alerts by visiting the ads action upper website at <unk>, that's cool stuff.
Mr. Ricciardi, Oh, founder Chairman and Chief Executive Officer, and Mr. Shao, Ginger, Oh, Chief Financial Officer will start to call that their prepared remarks, followed by a question and answer session.
Before they continue please note that todays discussion will contain forward looking statements made under the safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statement well you haven't risks and uncertainties as such the company's result may be materially different from the views expressed today.
Further information regarding this and other risks and uncertainties. It's included in the company's registration statement, a bomb I've run and form 10 didn't have as smelt, there's the U.S. Securities and Exchange Commission.
The company, that's now assume any obligation to update any forward looking statement, except as required under applicable law.
Please also note that schools earnings press release. This conference call include discussions of audited GAAP financial information as well as and others. It then gap and then you'll matters.
Schools earnings press release contains a reconciliation of the UN audited that gap now rose to the end of it hits most directly comparable GAAP narrows.
We'll now turn the call over to Oh, Chairman and CEO Mr. Ricciardi. Please go ahead.
But the whole guns young Joe Allman didn't have to be awfully.
Hello, everyone and thanks for joining us today.
Well no Ocean, who are the junior you fungible, yes, your loved junior somebody on the bundle should hold.
Good food she that all when Jenas, how who are you.
They were starting to use georgeson.
Fungible woman, Jim when we pumping turned off and you do a student body, although them in besides should do it in New York.
Yeah oil young we more pool pull us was a Bobby I want.
Homebody, then Dom and doing what she bought in cheap.
Just don't buy when do we should do their new ways with who we are.
The buttons on all the door don't on just did you go might be truthfulness surgeon goal.
Good usual ginger the war phone should as usual shoes and Dom.
So who Babu before you would been phone booth cogen, Jim to haul pushes how you.
Oh Gee, you fool attending gents, usually a bunch on ci own cooking how to cool on me.
Well you know how to you more should we go do Silverjet. He won't go how that go with yeah.
That is due to a pot schools growth momentum, even though pod her has carried over from the first half of 2019 and deliver another peel that also solid operational and financial results. This called her O.G.M.D.E. increased by 66.8.
<unk> percent year over year to RMB 3.6 pay six billing underpinned by or a successful execution of corporate strategies.
It doesn't have the number of active customer inclusive, 58.7% year over year to 482005 hindered beach, 69.6% have paid memberships.
ER business continued to benefit from the purchasing power and the secular growth of China's middle class driving the growing demand for luxury was good and a high and left out offering both on and off platform.
Eight this school maintains a strong focus on improving our platforms customer service capacity by utilizing leading edge technologies, such as a big date her and cloud services. In addition to our vibrant boutique product and service.
Portfolios integrate it is a intelligent operating program so as to provide the best possible that girls shopping experience to consumers in China.
She is old Recouping hashing zone, you use on me, but hardly weather boots on teaching.
Well then Virgin June portion Moody's Bob's gym had a horrible I did you pull down times into new.
You know its young young you, that's how we shouldn't high human Golden Georgia that build homecare halt.
Who are they join young you fungible.
Those jinming Liu by simplifying assumption how did your horrible.
Volcker rule, but in general humble blown.
It all fine thank God dish assumption path.
[laughter] Gainshare show LABA don't fashion LABA are they are doing change our stringent support blue Josh you know heart.
Hi is there a lot.
Cartooning Who'll go Churchill Blue Joshua Bob Young Pine generous yet.
I see babies yet.
Subs Virginians Fukuda surgery is just on the other charm values on the.
<unk>, Jimmy let me what Jim can chose yeah, what's your posters on told European high.
Third deal more foods.
Sure well do some groups in high school was who you're all due to bother don't want but.
Well first here.
So there could kill journey herbal junk ordered a golden rule for you should you know you do it I don't was just on phone charge on the end yet.
There's the increases in improve their brand awareness and includes a route domestic had the overseas market. They not only continue to expand the and deepen capacious. This top tier blends, but also actively spend its categories, but I'd limited edition trending.
Tail brands to meet the different preferences of high end to consumers.
Since the beginning of the so called her to date they had established a new that the corporations with Android and 43 brands, including Valentino.
Dan Brown and she now that notably for cool pets nerd, there's prior to us to the these products spring and summer 2010, Hey limited edition exclusively available on school <unk>.
<unk> over the course operated that that I've met company to exclusively male limited edition shoes. Alice series. This exclusive brand Corporation, we affirmed schools significant influence in the lack of girls industry.
Reason to be the stadium goulds.
Just pitch premium sneaker and street marketplace in the U.S. aligned to visit school and drying. The Paftwo also who has patnode. There is that the app collective European diligence to pre owned that girls fashion that site to cannot China's savvy shoppers.
This world class play old fashion trends.
Well member been Carvajal tone soon shiong told US you know Sanchez shop gold bunches, although.
She doesn't woman visual Arts, you didn't she junior and you mentioned boncel.
Well listen to July all idea about <unk>.
During chip will mirror, our general luncheons before the young fortunes on T. shirts.
Got it should we can do young for his shoulder don't leave for you. It goes your father tiny he goes we honor the Ocean Knutson do you fungible. So go full quickly I assume than those who don't slowdown golf, Joe our digital that soon going to slow down bundling up and you do it's just the new.
We are in Shahbandar hobby, So our June and July Archie you doing fine.
In the continuous efforts to develop cutting edge fashion activities, both online and offline the lunch the July the seventh anniversary promotion basketball in dry and the school OLED offering.
Promotion that people in September <unk> isn't time, they have successfully stimulation is killing off or customer demographic in terms of the customer last cycle and buying power to offer a customized perks, which will have improved retention.
The exciting in their so called her the incremental paid membership increased by 64.6% compared to the incremental paid membership in the second caught her and the conversion rate how paid membership increased by 21.3% sequentially.
You know our union <unk> food Shibu seafood crucial them we'll deal.
And your door New songs, you know <unk> Joe Moore.
Neil include your the agenda as possible. So did you want us at home phone War is something jogger soldier social So do you assume is we'll do that things you.
She's you're not going to know how the song chemical Yahoo Pee paid.
In doing that assumption to <unk>.
<unk> these young malicious <unk>.
Who can her sometimes it bhatia that she joined in Chicago in food and water treatment for you.
You mentioned on the Woman's hospital fusion I mean that Sheldon.
Well I finish at home Jones, who bull, whose parents she wishes I do we just don't want to move war well do board <unk> Jude's holiday. So once you from don't.
<unk> gun thought you know how they're going to song assumption can enjoy some countries yeah, good cooking wasteful.
Fungible Omaha, Ginger songs, you're not you know how to cope with your home Muccio Simon do you don't cover foolish mutual Eugenio Junkfood P. Vijay.
With our continuous dedication to deploy aim to operations to build up the digital schools in this caught her they launched a at powered operating system.
Adding onpro privately that system that able to provide the data analytics merchandised surprise sales and user behavior, enabling does my time match between the merchandise and customers and the needing more accurate recommendations.
That's 18 from this system.
80% <unk> flagship stores of those seeps sequel platform have implemented increased automation in part of the recommendation and merchandising reducing the menu operation so as to improve the operating efficiency in the future they will increasingly.
Hi, this system across or greater supply chain system customer service system, and a internal decision, making system to empower mall brand and the suppliers to make that uprising smart her product recommendations and the customer engagement. Additionally, it left.
Got hurt the officially launch that the yeah power to the customer service system and the incoming Judy around one third of customer feedback.
Being taken by the AD powered customer service system.
Do you bullet Gysle, Taunton Vanya woman's I phone <unk>, Joe Young food in Bonn, Joe you don't shoot home join you just Fukushima Bush lunch and not putting her you can help you won't rule.
Well you can high then go Shannon you goal should that I assume call. John you can do thoughtful that goes on the Odell.
For the the technology initiated.
From the completed the migration out of our use of system auto system and transaction system onto our newly deployed Hebrew H class.
[noise] platform before the double 11 shopping festival event.
Cloud infrastructure optimized or handling of traffic during peak times, having as tackled the high volume of transactions during the big promotion event.
Well my how this liquidity Peugeot yet just you're not bargains, you're going to hold to bring new Baja pensions. You go will do just gun, India Booting Air show a passion, we cook for that I couldn't be India cushion that go with here.
You for pushes the coupon news so it should be on top of the changing <unk> dual now you'll just see powerful than job valcourt side I want here hold on the.
Finally, the other thing Bob Cushing to bushing changing.
So did you do recall that you bought challenge the songs, yes, we want Mina gold uncalled for that I you can bypass young can be on my that's changing the should your goal with here do you Bush and home Balkanize little old Jews youngest them either symbol AHP had them both.
You are the your daughter human food companies not only going higher.
Oh would you bought these on digital woman thing once you know you churn brought home for legible.
Additionally, they thrashed the schools ATP homepage, featuring a clear a navigation and simpler shopping processes the greatly optimize the customer service interface, making purchase experience on the path from more than the and reliable supply tea.
Our content strategy, they made positive strides content creation and duration, you or I'm lying ameche.
Achieving significant increase in the area of UGC, including the productive sharing hot topics and activity is passing content distribution model or the schools that from taking shape.
It's called her so cool successfully launch leap stream.
Function devoted to experiencing be locked girls' brand online shopping through the hours of live stream shows featuring a wide range off the top tier boutique shops around the globe, including Europe , and Hong Kong of China.
As consumers.
Turning into becoming consistent you are oh shopping for the latest and fashion they are more than a solid between event.
Oh boy Harden their book through that going on here was yeah, so who choose not to use your one a year will.
Oh lines, and how you Oh, Gee parcels and on the passion.
So who choose your which is her searching Daniel you don't <unk>.
I was just remind you quite as you'll hear the Golden team had people who.
And just to go you actually gotten pocketbook Jones, Jinko, who he or she will go.
Okay cool teach you or June .
One bottle caught her home won't let alone muscle Bobby you aren't bhatia usually owns onto again, then Jim Yes, you're right.
I Love boats.
He coolant somehow you want Vulcan high Yeah showed all year the your thoughts on the other young Cook who.
Who find the truth or something else will be towards final fine but.
Being a important revenue stream E R diversified growth strategy or big they'd hirji that advertising business. He see maintain its rapid growth trends.
The cod her the Advertiser base Oh School, you see remained robust.
Across diverse sectors, such as automobile like Laura.
Finally spots, where CCBT toll and a vast consumer goods. There's a total of 10 day brands, including 15, new brands such as the P.T. platinum.
<unk> long term.
Uh huh.
Airline natural group Maserati and insurance they entry.
TV talk to you and I love it.
There's certainly see advertising platform has been receiving positive feedback from more and more merchant underpinned by triple that just her merchant in the Q3 versus Q2.
Junior through that so didn't do in wallboard didn't Kabbalah.
It's always been general surgery was a gold and silver phones European high began hooked in boys blew away.
Did you Burgeon populates surgeons, who are they don't jimbo away lumpy issue.
Well, our mutual juice Fukuda surgeons shelf is also true ginger that posted I don't want these young censorship himself is just how missions off.
What else would you like things you got I'm, Israel Jones children, inching function, new hopes and other jagoda change unless you think.
Been phones will assist me NIAGEN poach here that Eagle Ford only salvage and as usual we'll go much resiliency.
Binges drugs for the team had Tom Volcker use your far you sold your true don't Susan June June that hold off.
As the leading that grow and develop upscale left up half from school was bloodsucking invited to attend the second is China International impart Expo this year.
Lang, there's the Expo score and the like joined he really is the school or the like SAP, HM 2000, Nike Blue paper Leach activate the enterprise the current like girls goods market in China's lower Trc is based on schools had consumption dictate her.
Through big data analysis, the blue paid her classified the customer Ballard characteristics and Brent preferences Leach also have bread basket and send this amount and approaches you see them factors of different classes of consumers, thereby customer amazing.
Exclusive brand promotion and marketing spends to achieving precise outreach driven by data.
The along with <unk>.
The young drawn to push all.
Oh Gee, you hinges on Julie Johnsson or do you know why you enough forgot.
Gentry teachers are working now we are seeing shirt socially when bu pudong, so until we moved into Oneq <unk>.
Oh sure what are your while full recovery on T. shirts, one shot show sounds you enjoy change at all chunky ended up would you.
Well, Matt Young does your core Boston movie impossible, Shibu assumed Wabco media Codeine Grps you knew that part your hurdle gentry. Her father function Galp can do yourself if rule. So how July one is going Indiana, John you're just ginger.
Do you have shown Sanchez out three on the use it shouldn't you what's how will you do she wishes and Don looking ahead school L. remains well kosta advancing our technology such as acetate high end to cloud computing Yamato to expand that the department of intelligent automation.
Across better area, improving user experience or integrated platform increasing <unk>.
Economies of scale is you healthy growth in G.M.B.. Yeah addition to continue the appeal.
My they ship or pay membership echo system, and the acentia offer or online and offline integrated platform. There's a full spectrum of productive sections. Furthermore, they'll continue to broaden and deepen brand relationships.
For the.
Develop the supply chain capacity and Oh more opportunities for cross over a partnership across a broad range of categories offering the chance that he and the high quality shopping services for our high end customers they will be completed.
To strengthen meal or call capacity in technology management and supply chain system, along his or her one page across or online and offline channels to a chip sustainable growth in both business operation and financial performance.
On that Youre, unless you have all children as young with BARDA Jess out your other unions cotai with them Huh.
With that I will now turn the call over two or Saffo Mr., Sheldon Chen who will discuss our key operating metrics and the financial result.
So there is oh.
Thank you Ray chart and Hello, everyone.
You do <unk>, yes owners and indeed since you didn't see on Felicia Hugo pool, who are funny thing she when doing that the Sunday, New year's Eve Young woman to go do you gone down only where are you going to finally out a uniquely genie retail coating, leaving some debt.
Only turned down by the summer soon quote by friends about in some.
Well no when attitude and should do you think or Ti vo, usually liping only lonely push you called out a woman by June views on Hewlett.
Sure one woman John Jardine, a woman, Taiwan, Kinda suiting being show here Johnson, Nintendo you don't need.
You can warm and I don't know what pieces on the they didn't do it.
During the so called her they parted redcard high revenue of RMB, a thousand to and 900, many which is in line there's or expectation.
The study so called her these out how old is our ability to increase of 15 that wage brought about a healthy profitability fueling the called her this income from operations and the net income increased by 35% and a 38.3 for centuries back.
Can be a year over year basis.
Oh focus going forward is to continue to balance profitability by increasing our feature efficiency well I Edison Hot then or.
Oh.
Well over there.
ER inflows across that and change the online retail industry further solidify our position as a leading player in the market both in China and internationally.
Sure no other than that doesn't sound well now are you doing in defense you do teach he does I also.
Now I left to walk you through our detailed financial without no. So called her off with other than that.
Early June Besides you do during reasons outdoor CODI turns on bonds, a new slogan by about <unk> son, Saluting, Neil Young Junior endpoints, you either <unk> or so you didn't you, yes generally increased by 66.8% to RMB three find 66 study for.
So caught off 2019 from arm.
I think better for the so called her off 2000 agents.
Early June designed to do so im going to wait you balance or longer only turned on balance uses suit. There aren't June end points here, we will see audience, we want to go in now.
Total number of others increased by 74.2% to one point they will for many fold. So caught off 2000, Nike from 500 at 94000 for the third quarter of 2008.
Probably doing indecent do well mendo too so lupone turns on bonds as we've been doing five out I mean, these students who yet.
<unk> sued in here so three out to you a menu we more since you caught up sometime late who don't quote unquote <unk> shouting show and I look where you don't who's who of course, you also being down sort of quite who tender.
Total revenue for the so called her off 2019 increased by shouldn't take three plus 5% to approximate.
One flight 94, Betty for from RMB, One point 57 Betty.
So called her up 2018, primarily attributable to the continuous extension offer operation.
Lush offering of merchandise and service SK, you combined this or creative and effective marketing activities striving to get it goes all the total active customers and a total number of others. So during the period.
Oh, you do an empty Sunday to Orlando show time, though we then beach saluting Ian podium Genzyme bands on Sunday and Fine tuning Punchy. We then be society and then you do show no tendon buttons on.
So who the terms on T. manager.
Cost of revenue increased by just a 3.8% to RMB. One point 61 study for that so caught off 2019, but I'm wondering.
1.3 billion.
For the so called her up 2018, which was in line is the increase of hotels that values.
Only doing is designed to do well under Mollycoddling eyeballs and indeed.
Sunday Archeo, Ian Pony attendant band, Josh I think you tune income he will then be I didn't hear.
Yes.
Profit increased by 22.1% to RMB 329 million.
Oh, that's a partner up 2019 from RMB 200, or the end the 17 money for the so called her up 2018.
Early June indecent do woman not only for young region be audiences in the U.S. only turn time bundle. So she didn't know.
She union continuing Andy you didn't juju yen.
<unk> for your own Jen Hsun thought about yourself only across you don't show only T. Some goes on for young true Tt's with young.
Operating expenses increased by 17.
0.6% to RMB 200, and a 34 men for the so called her often southern Nike from RMB enjoy it ends and 99, many unfolded so caught off 2018.
<unk> expenses have been effectively manage this improvement in patients he as a whole now I'd like to walk you through the company's expense items in detail.
Probably need to an end decides to do well mobile news for young region <unk> surgeons fueled by new Shawangunk total tons on by minutes you. Bobby through June continue. We then be suggests you buy a Jewish wanting that.
On T. I'll quickly Cesar thing to being done through cost show for the tends not to forget These Thunder Eugene then John <unk>, who young children and young.
Oh fulfillment expense increased by 18.4% to RMB 49.6 money for the so called off 2019 from RMB.
Well take 1.9 minutes before the so called 2008, an increase was primarily attributable to the increase of sales volume, including third party payment completion as well as they increase their staff cost of doing the pure it.
Collegial New designs do you show families Andy Yep Pony turns on bonds lenient bump it unionpay on his shooting to know when you consider you show Shallish Tieszen low profile go turns out.
Our marketing expense increases the bad they were <unk>, 0.3% to RMB injured and 10 metric for the so called her off 2019 remained flat compared to this.
Yeah Gold here is primarily due to improved marketing efficiency and our effort to anyhow, so customer retention and the repeated parties.
Oh, he's doing is designed to do well, maybe if I feel we didn't mean be yen Ching Lu about Arthur Wang a podium Genzyme Yahoos, London, New junior and continuing to <unk> you mentioned you bought Arthur Wang.
Inventory I agree Coolsmooth, Jonathan seasonal yet if I don't know, who you didn't sound diesel truly tubing.
Technology and content that MINTIC sounds increased up I tend to 3.6% to RMB since access points to many fold. So caught off 2000, Nike from RMB 71, like too many before the so called off 2008.
This was primarily.
Continues.
In the technology.
Although to strengthen the driving force of technology for operation.
Oh, he's doing any designs do woman look one even with the movies Sujin. She my boss wind gusts codefendant bands with Boston, who didn't know Geneone puts you in the movie yen Ching whereby Jewish one yet. So we are unique and you do genco Internet Giants fusion say on the Jin Jiang equals move changes through.
I'm going to go to Gencos for units in John .
Oh general and administrative expense increased by 84.6% to RMB, 47th like Ace. Many unfolded. So caught off 2019 from RMB 25.9, many older. So caught off 2008, the increase was primarily attributable.
To those adding staff costs professional fees guns and office that's associated with the relocation off the office during the period.
Only two new designs Ido woman, the union wage and indeed, Georgia through by two Sonia Puneet anytime soon.
Julien continuing to me he can essentially one young woman or don't show rule Bausch Adelheid turns out post to consider you Michelle Challis GE showing you some joint or news on early June in defense you do the new engines.
Income from operations was HM.
94.9, many fold so caught off 2019 different then.
<unk> of 35% compared to this arms.
1.3 months.
Uh huh.
This was due to the combined impact revenue goes and improvement of the company's messages vision.
Police Union designs, you do see me go to acquire deepens, our son <unk>.
Uhhuh chance you did you say on the Union living wage and then be huge and she by will Shuang Ya Cody turns on by the essentially you get a junior continue we didn't <unk> she just through by Centsone yet.
non-GAAP income from operations, which exclude the share based compensation expense for the so called her up to southern Nike was RMB.
That is 7.5, nothing representing an increase of four.
31.2 per cent compared to the is the RMB <unk>.
Sudden pay 4.3, many fold the so called her of 2018.
Police Union designed to do woman attuned to even thought about the movie no terabyte used to one yet junior impose you either <unk> sujin through by June Shuang Ya Puneet Genzyme by essentially Bobby inside the record net income of RMB 62, like London medic unfold, so caught off too so.
Other Nike, representing an increase of 38.3% compared with RMB 44.9, nothing for the so called off 2000 agents.
Probably doing is designed to do.
We make work real hard it turns out who Huntington Julie say on that you need one way the movie launches ribeye choose who I am only turns on Beilenson Sunshot June impose you is a movie suggest you buy land.
non-GAAP net income, which exclude share based compensation expense for the so called her of 2019 was RMB.
64.79, representing an increase of 32% compounds.
Arms.
Yeah.
Cost of 2018.
Well maybe early June this would you do they use her now falls off called her off 2000 snaking outlook.
Oh really doing interested to go through more Chinese or soon will find ways, but then maybe I'll show you our society.
The Chilean home she turns on.
Our sobbing she thought on our supply being censored yet.
The company. We currently expect the total revenue for the fourth quarter of 2019 to be in the range of RMB 2.2 study and arm.
Like three study, which represents an increase of approximately.
2.7 cents to tend to 8.3% on a year over year visits.
You said you source or do you intend or susanto again pull through financial consumer channels or three screwed up to union.
Oh, Dan Coker, who choose you would or could you just your social Colombia and one of the above guidance is based on current market conditions and reflects the companys current and preliminary estimate of market and featuring ambitions and a customer demand, which are all subject to teach.
He is also a military <unk> Jude I remember you have just so if you and this conclude our prepared remarks, we will now open the call two questions. Operator. Please go ahead.
Ladies and gentlemen.
Well now be gained a question and answer fashion if at least to ask question. Please press star one entre telephone and wait for genetic analysis, if at least I can't say your request. Please press the pound all hash key for the benefit of all participants on today's call. If you wish to asked a question to management in Chinese.
Please immediately repeat your question in English.
The first question comes from the line of can Chong from Jefferies. Please ask your question.
Oh, Hi, Manish for now thanks for taking my question, how should I wanted to not just want to June which I know on July one Oh, I'm, sorry, two years I wouldn't say they will go and she audio ones you not sure Joe I want to our genes either so turns out well gentlewoman. So that you talked about how we go buttons as she surgical yesterday, how do you remember Joe.
Hi, there cannot be job woman do you do a good appearance you do though how seriously our money's you whatever she enjoys that trigger mummies reserves you weigh woman Oh look a lot or sold at a one the in jobs, you're probably you know you went onto that you do on New Yorker easier color actually co ops whatever presents a garage everything the highs how China is a money Egypt.
Yeah, I wish him well towards you know your chances are that occur.
<unk> shot you do the liquor I'll shoot up so you know hawks or what was the Bohannon Tomorrow. You got you had beaten by the younger Josh was on again I don't view on turned out.
Well, Mike would you do you do not see onto my consider it took us once you get wouldn't you wouldn't or.
No. We're still trying you don't really holding up outside so when they're going to you. So I'm going to questions on through the first question is now regarding the Judy group I know that's all we are delivering around 60% to 70% GNC growth I'm just quota on but are still a ministry, leaving but I've ever center quite nicely.
Down from the first or second quantities here I'm. Just wondering if studies are resolved a macro because are you have been over in subsidies orders cow. All this quarter and I'm also I will let your often I'm looking towards the next quarter and you saw revenue guidance or shorter. So I'll just be girls are re appliance and now when we look to us or true.
110, Gee, how should we think a body GLG growth. Thank you.
I was just yet but.
So generally Youre man surgical Bob how are they are then alleging got turned down we'll miss you feel you soon enough.
We'll go bunch officers Hall don't want to show vision.
All right and not the shares on the gold and silver the San Dimas should hold I.
I should say Chrysler far duck session.
Let's see how element viable and kind of older finance them to go on people often called I guess just on the bottom as Julie.
Are they doing issue I'm of course, if I didn't mean yet.
I am parts of other changes, it's all going in yen Yahoo. Although we are you usually have questions I enjoy from it. So there was a woman slowly, but you feel that conventional hollow.
Sure. The dollar for dollar do what do you know parcel the father, well Jones you want me Biogen a change a lot of going down a t. shirt.
No hotter junk something this young team for you for the Union.
Hi, all know full who you on a July ballpark fossil jewelry due for the ginger and the utilities.
Oh, Yeah, Youre minutes, just on that deal, which should turn the t. shirt.
Hi, all im answered on the coal foolish at home.
The answer is yes.
And then we will not go unusual cause a whole, but you got to uncover the judicious it.
Well jobs, you're having said that can Tom who the you've got gymboree, Yeah, just talking bother you got Kimball.
So they are they are going on I saw woman's young guy.
So I'm in such a Jupiter one goes on in you know Java, pushing hard, but you know bar.
Thank you for awful just a minute holder.
And also put a generally the union and it can chime in as you know hot fill those and then getting all the teaching them and that's all it.
So you are challenging.
Oh Man Minya, you didn't become quite so there you got turned off she the Hong here They got engender do it.
First of all I have great confidence he had consumer market in 2000 to date I also believe that the growth momentum of consumption upgrade to and also the has online market will develop that had to be beach providers is absent the lucky to opportunities to suddenly.
He is a year affects the goes for us the penneast elsewhere or that it just happened to is that they are well prepared in terms of the supply chain customer and a membership operations he technology operations and marketing.
So that they do it by nearly a year off too.
Got it goes the global supply chain system, the mute the smart.
Merchandise selection and the use our patients and also the paid membership echo system. The b that they have faced a precise.
Marketing system as well as E.
Fashion content coming to system and also the a power to customer service assist them all else Beach, so suppliers and partners and also the high end to.
Customers have all made significant progress.
Into 2010 days on the basis of the World Cup out.
I believe they they'll continue to impress and even the investment.
Yeah, I closet services and also big data so as to make <unk> overall operation of school smarter and more efficient.
And also they believe that schools business a they'll remain.
The faster growth stuff.
Thank you all hodosh.
Oh, that's usually on your radar or you'll do you want to your own detention, Joe you shop occupancy or one decryption Baidu cushy SCUSA. She got Ciccone minimum Angela you buy Susan Sangha open de how do I want you hotter can probably not a wish her and she enjoys showmanship, especially you couldn't can touch I'll go to share our luxury that she microsource no.
Earlier in the home and auto anchor tenants, who knows if somebody on the true.
Bottleneck option Pitre, I'm not going to shoot on our young woman look appealing each gondola behind them.
I'm still a funny shots on my second question is regarding the number of friends every rock with first our congratulation on the fact that should we have actor to 143, new on domestic and international brands artist quota I'm. Just wondering how many are luxury brands do we work with now and I'm looking towards our 2000 and changes one.
This Australia as you like to import more brands to further improve or a competitive edge. Thank you.
Oh, well missions I know you can go on the wants on their call them, Tim how are you Jones' institutional option Paula.
Well, let's look where you may want me to do you do the job I was just on child or the gold and silver Fujian high hoping pathogenic a book.
Looking dog and how they're going to impact the Golden foods impact. She goes with the tone should that you got done yet.
Do you know I mean do you find you dormant chenier like vessels you find good Judy I could go live in my previous at Buffalo, She's There song government European patent filing handle Ohio beyond two minutes, you something had palm blown.
Well the plot.
Hodgen go that's aside im not sure the other Simpson don't bundle.
With record here going up but we'll just we'll talk often about that.
Yeah, you over the sheer shouldn't impact so they're not like hobby.
With local people not certainly on the young Kwon, thus, yes, yeah.
You know the there's only a minute ago bottom line impact yeah. This is our so called to job you're going out to ship mogul, where you'd done could go higher.
You all major Passthrough cool sheer known soon Synching, although project could go aegis, all warm and they got to do so they got long shot.
I am Virginia, unless you have another gotten brokers on sort of Zimbabwe's huh.
Yeah, well you go if we told you mean, the Golden this year that impact did offline.
John Kim has lawyer that friendship two jobs would love to cool.
Ohio, Nimbly, a job Peabody training and Bull current gold and didn't do that school bus yet should they are punches I suppose assumptions on their customer.
Oh, just the who won some tangible Jeff Osher Lucky Mone line should there seem to have hardship.
So is that we're not.
So what I showed you bought teaching them, how close all that shouldn't do well needle.
Although I'm not breo soon.
Well media Hook pinpointed Chicago loosely proposed so there's some can go pool.
Going forward, how to pin pad to walk.
Gee boil called it's true. These reports all the Golden shoes off Todo Synching do you see that Shouldnt passenger social media that usually.
School has been committed to become the attends asked me hands shopping. So this half from right now we've already collaborate with around 4000 blend already.
So.
The.
Ah cooperating is spent a lot of introducing more and that happened and so there's 12 platform is the long term strategy also come from and a so called or else. This idea is to finish the direct the car patient is.
Ah I haven't got and 43 more breadth.
Including the ones you know the Gina and also some Brian so.
Hi, there Oh, we'll release is limited Atish in back this school spring and summer 2010 take action and also stellar and that kind of keep a theme or spend of shoes has launched a two limited edition shoe. This school exclusively and also the Adam or the known just close.
And also at language schooling is exclusive sales of T shirt had and who these so a couple who actually are valued the limited edition and seasonal hurt us it's on a mainstream and also at the China International import Oh in November .
This year that you another British the high end shoe Brent exclusive easy killed the or sell a cool safra, including its high end customer miles to draw a shoe such as the movie poet also spring Jack.
As you say there is more likely to a what's also sold exclusively on school a lot in the future school, they all collaborate and further and deeper the threat to create a.
So cool feature to protest and services.
Which will further establish the school spend each as a high as fashion shutting pfaffle.
Thank you.
Uh Huh [laughter]. Thank you very much.
Thank you see next question comes from the lot of Hugo Shen from Macquarie. Please ask your question.
[noise]. Your line is how we all younger once you are you going to use yourself can galleries shots on each and then on sometime in the onetime can put on the short you can be selfish and beyond.
Keep I'll call, a bulk off bald guy a whole through bullshit.
Oh.
The whole indoors and don't indoor Syria. Its here are jumping the gun cigar Lake Whos going to show ways shop, a second we've got someone goes to the especially since I don't know who are trying to you'll notice in good shape, So, Indiana washable real hard to ship sets out she enjoys in accordance your <unk>.
Our lives, which are fine. So I was asking myself I have a two questions.
First one is Ah I wondering if management can give some update on the growth trend the French luxury product categories and.
She is a including our jewelry backs closing sportswear and cosmetics.
My second question is that I Wonder if management can give any update on the Companys Oh two old strategy.
Yeah, what your expansion plan of all slice gearing centers for next year. Thank you.
Oh no wasn't origin, great do you got two laser Sundance you go into Oh, well, that's what I've with our.
Early June woman U G.
Hi, good chunk that ends on June Sangar, T. too lazy, Joe you again, the Palm Beach Sundarbans bond funds.
Gives it though to get these 4 million tons on the Youre shipping late fall by Pony Sundown Love filings juices, It's Europe sheep.
Who don't ship Pacer show sure Cody Turndown loved ones Abbas.
Anyway.
Oh, it's still on their woman. She corridor is European made for me John .
You will show Gulf War, John do you don't go down so fortunately buttons on suits or Sanofi noncore towell abandons Arbor.
So there are new woman, Bob Mulroy Young woman so he's in the month to do you want to your which usually cycle gold bars show very Kosovo food can tie the theory the moved out Susan.
According to the CFO .
And.
Yes, they remain strong girls a into southern Nike and achieved year over year.
Increases of 83.
Generally for the first three quarters as of end of September or for the three caught her Jim you from a from in fact, Kathleen influenced by our guns and that is 7% year over year end of first quarter Jim from coding.
Right and test with increases.
By 80% year over year also the goes Oh I see he then gets caffrey vision two years, including cosmetics travel and myself hustle to Frank has it.
Exceeded 200 visits this shows that are able to satisfy that were customers.
Simulation upscale hurt us and left sales service platform.
Thank you, although there are certain helping engine ziana and there are put on a jihad well that John yourself, how much I know, where John Bala you want mission to do then the old do the jungle book and body to change our bother temperature Geneinsight engine Gibble RPM had been nowadays younger <unk>.
So she can issue amazing during the fourth floor is yours or you just on the year. We're doing so you don't get onto only all they got phones out. So there will need to do with other too is you know how stands out Santiago. The father malicious just to put up with your franchise.
Well, you're confident I saw bullets, you're talking and don't since you just uhhuh gold on cool with Golden Copel, they're doing all that you, though so you're just on build you seem the where most of the you got your attention Pat.
So this is also put agenda that we more that they're not going in Ohio old old. It just looks in high school your Union Cohu, well do punctual fool, although on the shelf if when should the food and among other your they attention.
And this the who will deleverage usually caught up so she has just on the father.
Yeah warm in Georgia, The war coolant shares I should have yet when we issue woman. So just how you're the daughter 4 million Gergen. She has alco don't shoot is healthy she does found in Georgia.
Oh, well maintain should agree on the food and only so all I can go to Pooja Super This years, how that should help your whole go on this years old fish on how the changing or young quoting huh.
Yes.
For the second question according to or let's say you know as we mentioned just now that they're actively adding the K tapes. It he midstream videos reasons. The under the collaboration is the boutique shops around the globe, including a there's Europe .
And also how have China, so be applying business has a as being an important component or the since the end to they appear to or unique offline and online.
Oh, My integrated models seems our establishment looking at the directions I'll eat business development.
HM.
Well go up like fuel incident, her or is it sounds like part in China for school to sell the high end customers and engage with the customers. There's a school scale expansion. A factor of appreciate include this flanking O to O technology platform membership automation, the customer service logistics and.
<unk> management and also the installment surveys are going to be a increasing immature in the future school will continue to extend the ER.
Oh flying presents.
Ah by empowering D offline stores, then also improving be applying service capacity of seeking members us cool they'll expense. This offline market more efficient be a that also because actually they've already have a inhibition EMEA and ecommerce.
Yes, so actually.
They're not only going to open the a bank feeling to centers or buy or sell it also a collaborate it's <unk> partners.
To actually apply more than offline Consumptions game and also to integrate this yeah, our online platform more efficiently as well.
Thank you.
Thank you share.
[noise].
Thank you it's that no further questions now I'd like to turn the call that over to the company for closing remarks.
Thank you lend setting for joining us today. If you have further questions. Please feel free to contact schools Investor relations through their contact information provided on our website out the Piacente group Investor Relations with information. It's also on our website.
This concludes todays conference call you may now disconnect your lines. Thank you.