Q3 2024 Inter Parfums Inc Earnings Call
Greetings and welcome to Inter Parfums, Inc. 's 2024 third quarter earnings conference call and webcast at this time all parts of the participants are in a listen only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
This conference is being recorded.
Speaker Change: At this time I'd like to turn the call over to Karen Daily Vice President at the equity group and inter Parfums Investor Relations representative. Thank you you may begin.
Thank you Diego and good morning, everyone.
Speaker Change: Joining us on the call today will be chairman and Chief Executive Officer, John My Dar and Chief Financial Officer, Michelle Atwood.
Speaker Change: On behalf of the company I would like to note that this conference call may contain forward looking statements, which involve known and unknown risks uncertainties and other factors that may cause actual results to be materially different from projected results.
Speaker Change: These factors may be found in the company's filings with the Securities and Exchange Commission under the heading forward looking statements and risk factors in its most recent annual report on Form 10-K.
Speaker Change: Forward looking statements speak only as of the date on which they are made and inter parfums undertakes no obligation to update the information discussed.
Speaker Change: As a reminder, consolidated results reflect the company's two business segments European based operations, we were at 72% on French subsidiary headquartered in Paris, Inter Parfums SA and United States based operations through its wholly owned subsidiaries are headquartered in New York.
Speaker Change: It's now my pleasure to turn the call over to Mr. John The Dar ZOLL.
Speaker Change: Thank you Kevin.
Speaker Change: Good morning, everyone and thank you for joining us today.
Speaker Change: Once again I'm happy to report that.
Speaker Change: The fragrance market remains robust.
Speaker Change: And is continuing to grow both of cool at a more sustainable base than the best to you.
Speaker Change: The strong market only goes so far.
Speaker Change: Equally important to our success.
Speaker Change: Ability to swiftly adapt to.
Speaker Change: Changing consumer preferences.
Speaker Change: Trends as well as changing challenges of the global business.
Speaker Change: While delivering our products sustainably and efficiency to our retailers and distributors.
Speaker Change: Historically, our first quarter two has been our strongest.
Speaker Change: Owing to the Vod this season shipments.
Speaker Change: And the first quarter of this year.
Speaker Change: These upfront.
Speaker Change: He tells US says it was not only the best filter Brookdale, but also the best quarter in our history.
Speaker Change: Michelle a couple of minutes will provide insight into our financial results.
Speaker Change: So first quarter says across all markets were strong our three largest markets North America, Western Europe, and Asia Pacific grew sales by 12%.
Speaker Change: So North America, 25% for Western Europe, and even 15% for Asia Pacific.
Speaker Change: Central and South America says also continued on its positive trajectory with a 20% growth.
Speaker Change: Sales in eastern Europe, bounces back I still being impacted by sourcing constraints no dealings.
Speaker Change: The year, achieving first quarter sales growth of 23%.
Speaker Change: Also our world travel retail business continues to strengthen.
Speaker Change: So Libya shortly in the first nine months of the year. He does increased 24% from this time last year, representing approximately today, 7% doesn't it says getting us closer to our target of 10% of annual net sense.
Speaker Change: Yeah.
Speaker Change: Regarding our presence in China.
Speaker Change: We recognize that we are currently under penetrated in this market and we are fortunate to have remained insulated from the huge volatility and challenges that many companies in our industry faced in this region.
Speaker Change: We have been closely monitoring the region.
Speaker Change: And did tell mind that the timing for entry he's not hits right.
Speaker Change: At this time.
Speaker Change: The initial stages of developing this strategic promotional program aimed at accelerating growth in the Chinese market, but early in 2026.
Sasha: It's very measured Sasha.
Speaker Change: Yeah.
Speaker Change: From a channel that's big piece for the first nine months of 2024.
Speaker Change: Direct sales to retailers in troubled retail represented approximately 57% of our well net says up from 35% one year earlier.
Speaker Change: Eurex says up primarily in the U S in France and Italy.
Speaker Change: While retailers are adopting a leaner inventory approach our product sales have remained strong despite the reduced Stoke available on store shelves.
Speaker Change: And she and since the majority of that well and it says are conducted through our global network of distributors.
Speaker Change: As committed to them is Eva in terms of point of sales advertising and promotional she broke product development.
Speaker Change: And marketing.
Speaker Change: With an increase of sell direct to retailers. We are also seeing an uptick in our promotional gift sets program.
Speaker Change: Gift sets.
Speaker Change: <unk> done multiple offerings in the beauty industry.
Speaker Change: And then he the highly desirable value for our retailers customers.
Speaker Change: What do you meant while demand is not as high as you have seen across our U S. Consumer is we're seeing growing demand for gift sets.
Speaker Change: Across Europe, and even in the Middle East.
Speaker Change: During the summer we fulfill the initial all dose of gift sets and achieved healthy sell out plus strong reorders in the fall.
Speaker Change: Our retailers are not restocked and well prepared to serve their customers.
Speaker Change: Of the holiday season.
Speaker Change: Yeah.
Speaker Change: Turning to our strategic initiatives our success reflects with consistent upscale full months of many of our prestige brands and the resilience of our team members, who tirelessly to ensure operational excellence throughout the organization.
Speaker Change: Sure.
Speaker Change: There have been key areas of improvement this year, but all in large part driving our well results.
Speaker Change: Which include our advertising and promotional programs and fruitful slate of new products.
Speaker Change: Regarding our adjusted zinc and promotional program. We have continued to focus on social media and to a lesser extent legacy programs, such as Billboards television and print media.
Speaker Change: During the first quarter and throughout the entire Leo we increased our content creation by expanding our high caliber campaign across instead, Robyn ticked up to great success.
Speaker Change: We're also expanding into user generated content to Anchorage, Bill cheeses, who highly engaged social media influences will considerable sway in the world of butane session and increasingly include men mail insurances.
Speaker Change: Women's wear daily reported with Amazon did $250 million in men's fragrance sales last year.
Speaker Change: 43% from the prior year.
Speaker Change: Amazon the woman's fragrance business grew 34%.
Speaker Change: Yes, he called called out mobile.
Speaker Change: That's one of Amazon's bestseller, while women's fragrance says I've traditionally outpaced mens recent trends show that the gap between zone is not really.
Speaker Change: It's not just about fun.
Speaker Change: Ration of insurance sales and new digital platforms.
Speaker Change: Becoming a central axis of marketing strategies, guaranteeing greater proximity with consumers and agility in the face of market changes.
Speaker Change: We also regularly called coordinate with our brands fashion houses, resulting in both partners benefiting from the synergies of Grand recognition and appreciation.
Speaker Change: For instance.
Speaker Change: It just a skull island tough fragrance called New York or the buffer was featured at New York Fashion week and invoke magazine.
Speaker Change: Also not where she has a very clear U S fragrance, a wealthy man hour Donut, Karen Cashmere collection was selected this year's best fragrance collection, and Oscar de La Renta Alibi bump was chosen as the best or the toilet.
Speaker Change: Turning to our pipeline of product launches during the quarter, we began distributing new scents for the Montclair.
Speaker Change: Cordless to make collection in the Middle East, which we go full scale in 2025 or.
Speaker Change: So the beauty of what we're all Scarborough, the Hunter and New York, All the best for Us.
Speaker Change: Mentioned earlier and the new flanker for long runs modern Princess.
Speaker Change: We also introduced extensions for guests, we will more intense so.
Speaker Change: M C M Diamond the new look in center of the backpack pillar.
Speaker Change: We have also kept chilled lots of media attention.
Speaker Change: Deluxe limited edition version of M. C M. A world winning fragrance MCM or the buffer which is at least by hand with approximately 1112 ski crystals.
Speaker Change: I will new DKNY blockbuster fragrance DKNY 24, seven is doing very well and we are expanding its geographic distribution to new markets as well as fulfilling reorders from initial customers as.
Speaker Change: As we mentioned in our third quarter sales release, the DKNY Donna Karan brand dual.
Speaker Change: Is on its way to be our next 100 million block well.
Speaker Change: We're also continuing the global rollout of <unk> to cut any switchable shoes and that cost original.
Speaker Change: These two new brands combined says are expected to add approximately 100 million and incremental sales in year one.
Speaker Change: We have a good lineup of new product launches in the coming year or our second largest European based run mobile all we will welcome a new pillar.
Speaker Change: Similarly, new Pilatus will be unveiled Photoshop and got like I said, we're also growing the montblanc explorer, Jimmy Choo man and coach for men and women's fragrance families.
Speaker Change: The same for our Kate Spade Montclair, Thank cliff collections.
Speaker Change: That cost the original man and woman and elsewhere. It swells lines will be extended and of course, our own Tencent luxury fragrance collection NIM Solferino parish will begin limited distribution in the summer of 2020, but look.
Speaker Change: Collection was designed to compete with niche fragrances by bringing our skill and knowledge of each category.
Speaker Change: And the power of our world distribution, which should enable us to make the stuffed up the success.
Speaker Change: She also more since we are not being the usual royalties to a brand owner because we own.
Brian: Brian we can put that money to good use in A&P.
Speaker Change: Yeah.
Speaker Change: So while well U S based operation, we will unveil new pillows across several of our brands, including two new scents for the Donna Karan Cashmere collection.
Speaker Change: The blockbuster dual for Abercrombie and Fitch.
Speaker Change: Yes, new lines for all of that together and you see I got more and we can go.
Speaker Change: We will also be introduced will also be introducing new extension for several guess fragrance families.
Speaker Change: And so MTN and enlarging the range of personal care product within each brand such as missed and creams.
Speaker Change: Boosting our momentum our Italian subsidiary that has been serving as a distribution hub across all the brands since January continues to perform favorably.
Speaker Change: Online sales are also trending positively across Europe, as we leverage our U S based ecommerce experience to capture so they'll sits.
Speaker Change: Well, if you don't see network product expertise strong brand relationships and efficient distribution capabilities.
Speaker Change: Together with the dynamic market. We believe we can achieve our net sales target and set yet another record in 2024.
Speaker Change: I will not turn the call over to Michelle <unk> our CFO.
Michelle Atwood: For a detailed financial review.
Michelle Atwood: Thank you John and good morning, everyone.
Speaker Change: By all measures the 'twenty 'twenty four third quarter was the best quarter in our history as laid out by Sean I'll drill down the P&L for some also of the highlights.
Speaker Change: On a consolidated basis gross margin was unchanged from last year's third quarter had 63, 9%. We did see some movements between the two segments, but these were primarily driven by brand and channel mix.
Speaker Change: On a year to date basis.
Speaker Change: Consolidated gross sales expanded 30 basis points to 63, 6% and.
Speaker Change: And we expect full year 2024 gross margins to be slightly ahead of twenty-three at approximately 64%.
Speaker Change: On the MP side A&P expenditures increased 6%.
Speaker Change: To about 16% of net sales and 19% to 16, 6% of net sales for the third quarter and the first nine months of 2024, respectively.
Speaker Change: We're really seeing the results of our investments on our topline achievements and acutely supporting sustainable growth for the future.
Speaker Change: We continue to work towards our target A&P expense of 21% of net sales for 2024 with significant spending plan for the fourth quarter of 'twenty 'twenty four to ensure a successful holiday season and strong start to 2025 similar to what we have done every year.
Speaker Change: Also included in SG&A expenses royalty expenses approximated, 8% of net sales for both the current quarter and year to date and this is broadly in line with our historical rates.
Speaker Change: Once again, the amortization of the cost of the Lacoste license, which amounted to $4.8 million. During the first nine months of 'twenty 'twenty, four or $1 6 million quarterly will continue over the 15 year life of the contract.
Speaker Change: Overall, SG&A expenses increased 12% and 16% for the third quarter and the first nine months of 2024, representing 38, 9% and 41, 8% of net sales respectively.
Speaker Change: The same periods last year, SG&A expenses were 42% and 39, 8% of net sales respectively.
Speaker Change: Our third quarter operating margin was 25% compared to 23, 7% in the same period last year year to date, our operating margin sitting at a very healthy 21, 9% compared to a very high base of $23 five for the first nine months of 2023.
Speaker Change: As we reported yesterday, our net income was impacted by foreign exchange losses of $3 3 million in the third quarter as opposed to as compared to 0.7 million gains in the prior year, leading to a year over year swing of about $4 million.
Speaker Change: From a cash flow perspective accounts receivables are up 41% from a year to year end 2023, but the balance is reasonable based on record quarterly sales levels and the seasonality of our business.
Speaker Change: Days sales outstanding was 83 days up from 72 days from three months ago, but this is largely driven by channel and geographic mix as we reach more retailers and specialty stores directly.
Speaker Change: It is important to highlight that while our accounts receivable have increased.
Speaker Change: Not really outpaced sell in and we continue to experience very strong collective activity.
Speaker Change: Very little risk on a R. R.
Speaker Change: Our weekly reviews indicate that our receivables remain in good standing and we do not anticipate any issues with accounts receivable collections.
Speaker Change: Our inventory levels at the end of 'twenty 'twenty four third quarter increased 9% from the year end 2023.
Speaker Change: Inventory buildup is designed to support and protect our service levels and the inclusion of our newest licenses Lacoste and Roberto Cavalli.
Speaker Change: We're actively working on programs to deliver more inventory efficiency and in that regard the conversion of raw materials into finished goods resulted in finished goods, making up 63% of our inventory levels at the end of September as compared to 58%, while the one year earlier.
Speaker Change: Our efforts to convert more profit to free cash flow by reducing our inventories are beginning to bear fruit was a significant year over year improvement in net cash provided by operating activities, which totaled 76 million compared to $18 million in the prior year third quarter.
Speaker Change: We closed the quarter with a healthy balance sheet with working capital of $617 million, including 157 million in cash cash equivalents and short term investments our long term debt, including current maturities was 179 million at the end of the third quarter.
Speaker Change: To reiterate we are reaffirming our 'twenty 'twenty four guidance of net sales of 1.45 billion.
Speaker Change: Implying upper single digit growth in the fourth quarter of this year. This results in earnings per diluted share of $5.15.
Speaker Change: Which will set a new record for our company.
Speaker Change: I didn't your perfume mastering regulatory environmental and digital issues has been and will be key to remaining competitive.
Speaker Change: Thanks to our innovation approach targeted premium position and ability to offer unique experiences inter parfums is well positioned to meet the challenges of tomorrow, ensuring sustainable growth and strong differentiation and our globalized market.
Speaker Change: With that operator, please open the lines for questions.
Speaker Change: Thank you.
Speaker Change: I will now conduct a Q&A session. If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: You May press Star two if you would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Speaker Change: Our first question comes from Ashley <unk> with Jefferies. Please state your question.
Speaker Change: Hi, This is Stephanie on for Ashley. Thank you for taking our question can you talk a little bit more about the changes in consumer preferences, you called out it sounds like maybe there's a bit of a trend you know that the gap closing between men's and women's fragrance, but curious if there is anymore.
Speaker Change: Do you like you would highlight thank you.
Speaker Change: So I can try to answer them.
Speaker Change: We did see some trends in the quarter.
Speaker Change: Once I still malte.
Speaker Change: The main street, the mens bottoms business.
Speaker Change: Stronger.
Speaker Change: He also.
Speaker Change: No resistance to to price elasticity.
Speaker Change: Even citizens the trend to premium musician when due.
Speaker Change: Fragrance more and more people are willing to pay more for fragrance and we are even talking about the younger people that are willing to pay a little more that's why.
Speaker Change: The AIDS and such.
Speaker Change: Such a growth in the AR collections.
Speaker Change: Sure things that are less commercial has more signature.
Speaker Change: The distributions.
Speaker Change: More silicon Cheez it and the teams are neutral, but on the other hand.
Speaker Change: Letting business commercial business with the designer fragrance business.
Speaker Change: That we have.
Speaker Change: I will be your coach all gas so long.
Speaker Change: Jill.
Speaker Change: Doing quite well.
Speaker Change: So this is for me the bottom funds that I can identify.
Speaker Change: Thank you.
Speaker Change: Thank you Andrew.
Speaker Change: And our next question comes from.
Speaker Change: Lauren Wolff Meyer with Piper Sandler Please state your question.
Speaker Change: Hi, this is <unk>.
Speaker Change: Hi, Thanks for taking our question.
Speaker Change: I just have one on selling trends what are the expectations for Q4, and then what are you seeing with retail order pattern for bullets on the U S and internationally.
Speaker Change: And then just how far off is solid.
Speaker Change: Right now.
Speaker Change: Michelle.
Michelle Atwood: Yeah. So in terms of sell in you know I think as we laid out in our prepared remarks, we're projecting a double digit growth in the in the fourth quarter and at this point in time, you know what we've seen in the first nine months is sell in and this is not only true for us, but where we're seeing this is also for our competitor.
Speaker Change: As a sell in has been slower than sell out and what we're seeing is destocking.
Speaker Change: Continuing to happen.
Speaker Change: Across the across the industry. So theres still a small disconnect between sell in and sell out and its been it's been about a point and it really varies from from geography to onto another so at this point in time, you know that's kind of what we're projecting for the fourth quarter, but our stocks. It seems to you know our retailers are well stock.
Speaker Change: And so far the holiday season is going are going pretty well.
Speaker Change: Great. Thank you very helpful.
Speaker Change: Our next question comes from Hamad coarse sand with B Ws financial please state your question.
Speaker Change: Hi, Hello, I may follow up Hi, a follow up on the slot last question is I'm, just trying to get a handle on the sequential decline figure here.
Speaker Change: Based on the current guidance, it's a 15% sequential decline in sales.
Speaker Change: And I parse never had that kind of degree of decline going into Q4 from Q3.
Speaker Change: So I just wanted to see if there's anything special there.
Speaker Change: Michelle.
Speaker Change: Yeah, I mean, I think Amit hi, I'm at the end of the day you know sequential declines are very you know this is a very highly cyclical and seasonal business you know as you know.
Speaker Change: Year over year, there can be various impacts there can be launches a large launches you can have a new grand. So if you think about for example, 2021 we added the Ferragamo brand in the middle of the year.
Speaker Change: So at the end of the day you know, it's it's always very difficult to look at these things you know on a sequencing basis, but if you look at our growth rates I mean, our growth rates are projected to be a you know for the fourth quarter in line with what we've delivered on a year to date basis, our which is about 10% and you recall last year, we did have a very very yellow.
Speaker Change: You know year to date at the end of the third quarter, where we were up 27%. So so overall you know where we are like we are starting to lap some of the high growth periods that we had last year and and that's one of the reasons why you're seeing.
Speaker Change: More normalized growth you know this year end and also going forward.
Speaker Change: Okay, and if I may.
Speaker Change: What is the benefit or impact of selling more gift sets versus the traditional.
Speaker Change: Individual.
Speaker Change: Uh huh.
Speaker Change: I think that the customer.
Speaker Change: Looking for Houston.
Speaker Change: Value sales and he is also a way to to thank the loyal customer and to give him once a year.
Speaker Change: Some gifts.
Speaker Change: Again.
Speaker Change: We can afford to do practices.
Speaker Change: And you will see people going to the buttons. So they're really looking for Lisa Beeson, probably people would go away.
Speaker Change: Yes.
Speaker Change: The simple, but without giving away on the top of our regular size.
Speaker Change: Sean.
Speaker Change: <unk> or <unk>.
Speaker Change: I think it's a it's a way to try to keep our customer closely to the brand.
Speaker Change: So well suited to SUNS uncle.
Speaker Change: Good.
Speaker Change: Close to the Sun and.
Speaker Change: And for US of course, it doesn't mean little impact on the margin but.
Speaker Change: Two we're able to to manage it.
Speaker Change: It was a very the bottom to the U S for years.
Speaker Change: It's becoming more important in Europe.
Speaker Change: Yeah, we see trends.
Speaker Change: That isn't going to be.
Speaker Change: Important almost everywhere.
Speaker Change: So we'll continue to manage it we don't want of course to the business to be too big.
Speaker Change: The book to Bill in.
Speaker Change: In the third quarter.
Speaker Change: It's quite a normal two hot.
Speaker Change: Houston.
Speaker Change: Yeah.
Speaker Change: Yeah Yeah.
Speaker Change: He.
Speaker Change: Yeah Circuit. This mission no I was just going to build on our Amazon, which as you know.
Speaker Change: Every business has some level of promotion already you can either promote based on on price or you can promote through do these kinds of mechanisms each tenant mechanisms tend to be a lot healthier in terms of long term and preserving the long term value of your products in the market.
Speaker Change: So this is really a it's at the end of the day, it's a it's a much more effective and luxury.
Speaker Change: You know supporting them.
Speaker Change: Promotional mechanism.
Speaker Change: Got it Okay and then.
Speaker Change: Could you just if I missed this excuse me, but is there a update on the luxury line for released in 2025.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Yeah, I think the plan is to launch and and the summer of next year.
Speaker Change: That that is the correct. So that is the current plan.
Speaker Change: Thank you.
Speaker Change: I do wanted to insist there's still really going to be very small I mean, obviously, where you know you know this is a very important strategic play for us to enter this space, but yeah. These brands you know take time to be built up. So this is not going to represent a significant building block for next year.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Thank you and our next question comes from Oliver Chen with T. D. Cowen. Please state your question.
Oliver Chen: Hi, John Madonna and Michelle Ah the fragrance market in terms of somewhat moderating them. When do you expect that to abate as we are we continue to be in the normalization phase or catalysts for it to perhaps reaccelerate in the future.
Speaker Change: Also it is.
Speaker Change: Nice that you're driving higher demand across Europe, and middle East are sell in relative to the U S. Just what's driving that and helping us compare and contrast, these markets could be useful for us as well China has also been a tough market and I know you spoke about promos and tactics, but what do you see for China.
Speaker Change: The overhang macroeconomically could be structural and multi year in nature. So would love your thoughts on how to compete in that market as well. Thank you.
Speaker Change: Thank you Michel you want to to Unsub yourself the path.
Speaker Change: So that's okay.
Speaker Change: I mean, when hi, Oliver we continue to see pretty pretty healthy demand across our across the.
Speaker Change: Across the market and the markets are growing are we continue to see double digit growth across the market. We're not really you know this is what the MPD data is kind of telling us, but when we look at our competitive our competitors and when we look at overall of what's happening from a from a selling standpoint, there seems to be a bit of a disconnect. There.
Speaker Change: And again I think this is in part driven by some of the adjustments that are being done within our within the inventory levels of the stock in trade levels.
Speaker Change: We keep thinking that the market is going to slow down and I think that that is always reflected in our guidance and I think we've all been happily surprised quarter after quarter that the market hasn't slowed down I think a lot of the trends.
Speaker Change: Continuing to be good, particularly I would say in the U S. A where we are seeing an increase in penetration very strong an increase in penetration and usage and I think that has been a really fueling the market.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: So I'm, saying, if I may I would like to add that.
Speaker Change: But we have seen a double digit too.
Speaker Change: The rule not too late.
Speaker Change: 10%.
Speaker Change: Nine months of the year, but are we seeing that.
Speaker Change: Hum.
Speaker Change: Stronger stay logged in saline.
Speaker Change: To date, the growth going forward to slow down.
Speaker Change: I don't think we get we are going to.
Speaker Change: To see the same type of growth that we had to do with.
Speaker Change: As to the two to three years.
Speaker Change: Did you find them before Covid do you seem to see in the fragrance segment of the industry was growing at 222% to rates, who will do better than that cool.
Speaker Change: But.
Speaker Change: When you see our peers and when we see the market I think we have to be you.
Speaker Change: And prudent on the on the go.
Speaker Change: So the good news is we have the brands in our portfolio that are at the beginning of their lifecycle.
Speaker Change: Like cost.
Speaker Change: Not even a one year old.
Speaker Change: Wealth management and.
Speaker Change: And we have a lot to look to do.
Speaker Change: But oh Beth Luca value you also need a box for you and do you have a blockbuster launch.
Speaker Change: 2025, so because of the Actelion deal because of a box for you we think will continue.
Speaker Change: Who need it.
Speaker Change: Uh huh.
Speaker Change: P S O.
Speaker Change: But uh huh.
Speaker Change: I want everybody to be reasonable and do not expect.
Speaker Change: Joe with the best possible.
Speaker Change: Very helpful on Michelle on your Destocking comments, when might that and we're definitely seeing that across the industry as well and then John Murdock as we looked to next year, which product launches are our most material are you. Most excited about if you had to prioritize a few thanks a lot.
Oliver Chen: Yeah. So so Oliver I think the Destocking has been slowing slowing down I mean, it was much stronger at the beginning of the year.
Speaker Change: And it has been it has been slowing down.
Speaker Change: I think overall in the third quarter. It was broadly in line with our with our historical sellout growth. So I think at this point in time I think we're feeling that the destocking is behind us.
Speaker Change: Okay.
Speaker Change: So we are doing it.
Speaker Change: So all these we.
Speaker Change: We lose some.
Speaker Change: Very interesting new launches of the next year not as much on the Jimmy Choo.
Speaker Change: Sean let cost led to mention of course, Oh best to convey you see I've got more.
Speaker Change: Yeah.
Speaker Change: So and the guests has also.
Speaker Change: Okay.
Speaker Change: Interesting programs flipped it doesn't put the box so almost all of our largest brands.
Speaker Change: The new pillows or new blockbuster.
Speaker Change:
Speaker Change: So we are quite confident.
Speaker Change: Thank you very much best regards happy holidays as well as you can see with that.
Speaker Change: Great gifts that buy.
Lisa Beeson: Thank you Lisa.
Speaker Change: Thank you and we have reached the end of our question and answer session I'll now turn the call over to Michel Atwood for closing remarks.
Michelle Atwood: Alright, well. Thank you again for joining our call today before I end the call I would like to announce a few upcoming events, we will be providing initial guidance for 2025 and next Tuesday.
Michelle Atwood: 12th at the close of the market.
Michelle Atwood: On December 5th D. A Davidson will be visiting our New York headquarters as part of its seventh annual holiday beauty and wellness bus tour.
Speaker Change: And on December 9th and 10th I'll be participating in the Raymond James' Consumer conference here in New York City. So if you are interested in attending any of these events.
Speaker Change: Please reach out to their respective sales representative I also want to take this opportunity as we get into the end of the year to really thank our teams in our organization are.
Speaker Change: Clearly these results are.
Speaker Change: Our very strong we wouldnt achieve a record year without the help and support of our entire organization. So really wanted to tip. My hat again to the team. We don't get these results without a lot of hard work and dedication. So this is really a big not too to the organization to the IP organization for all their hard work and support this year.
Speaker Change: If you have any additional questions. Please contact Karen daily from.
Speaker Change: From the equity group, he's our Investor Relations representative.
Speaker Change: Her telephone number an email address can be found in our most recent earnings release so.
Speaker Change: So we look forward to the next conference call and thank you and have a great day.
Speaker Change: Thank you all parties may now disconnect have a good day.