The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: William Woods - Sanford C. Bernstein & Co., LLC., Research Division - Analyst
: Two please. The first one is on the drivers of the margin compression in the rest of Europe and in off-price versus Germany, Austria and Switzerland,
what are the different factors that play in the different regions from a margin perspective, please? And then the second one is on the partner
program. It looks like you've had a slight deceleration of the partner program despite you pulling back on the wholesale buy for autumn/winter, I
think it was at 38.7% in H1, 39% in Q3. Why do you think the partner program acceleration is slowing down slightly.
Question: Andreas Riemann - ODDO BHF Corporate & Markets, Research Division - Analyst
: Two topics. One is the inventory position. I mean it's down 10% year-over-year. So my question would be, can you manage the return to growth
with such a low level? Or do we have to expect a massive increase in the partner program in the coming months? That's the first topic. And then
the second one about luxury. Can you maybe say whether you have already a few brands on-boarded? Or what's different now compared to
previous attempts to enter the luxury space?
Question: Georgina Sarah Johanan - JPMorgan Chase & Co, Research Division - Analyst
: I've got 2, please. The first one, just with regards to 2024. I guess I'm sort of slightly confused as to what the strategy is into 2024. You said you're
sort of buying for wholesale growth. So are you still hoping to be in sort of attractive growth again by the end of the year? Was that supported by
marketing spend, should we therefore be looking for sort of broadly flat margins next year? Or would you expect to see gross margin recovery? If
you could sort of just remind us about how you're thinking about 2024 more broadly, particularly given that the consumer backdrop sort of
continued to be difficult and volatile a reminder that would be really helpful, please.
And indeed, as well, if it does turn out to be more difficult than host, are there further OpEx levers that can be pulled to support margin? And then
my second question, apologies, is very short term. Would it be possible just to confirm where you are trading in October, please? And how much
more difficult the base becomes into November and December.
Question: Georgina Sarah Johanan - JPMorgan Chase & Co, Research Division - Analyst
: Maybe because you're combining current trading with the 2024 outlook.
Question: Clement Genelot - Bryan Garnier & Co Ltd, Research Division - Analyst
: Two on my side, please. So the first one, back on the previous question. How do you approach that when you form between the need to generate
growth versus the need to really improve the gross margin? My second question is rather on the prices. As you are already in negotiations with
suppliers, you see small inflation? Or was the deflation in action next year?
Question: Anubhav Malhotra - Liberum Capital Limited, Research Division - Analyst
: I had a couple. Firstly, on the GMV performance in the third quarter. At the stage, I think you had mentioned July, you had seen some signs of
improvement. And today, you highlighted September was particularly weak. So maybe if you could talk about monthly GMV performance in the
third quarter, just qualitatively. And if July and August were in positive GMV growth in the third quarter? And then a second question on the
guidance. If you look at the midpoint of guidance, the revenue guidance has been cut by around 3 percentage points, but clearly, you have made
no cut to your EBIT guidance. So maybe just you could tell us where you have been able to find those extra efficiencies or savings that you had not
previously budgeted at the start of the year or even at the first half stage.
Question: Paul Rossington - HSBC, Research Division - Analyst
: Just one you. if you've downgraded GMV guidance for this year, albeit it was quite a wide range for Q4. Does that mean we should now be thinking
about a slower start to the first half of next year as well? And on that basis, are you able to give us any kind of view or thought as to what GMV --
what a good starting point for GMV growth guidance might look like for 2024?
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