To get to the 10% EBIT, the math is pretty easy. I mean, you need 50%, 51% gross margin. You’re running marketing at 11%, and you can have an operating expense of 30%, then you are at the 10%. And this is where we should be, to be honest with you. And that is not impossible with what we have as a business. We just need to get into a normal stage where we’re not all inventories, and we’re focusing on our Wholesale and Retail business in a more, what should I say, realistic way. I clearly see the 10%, but I’m not saying to you it’s ’25, ’26 or ’27 because then you will be disappointed if we do something wrong. I hope you give us ’23 to show that we know what we’re doing, that you see some improvement in ’24. And then the acceleration of our EBIT then depends on all these factors.
But I think we all — and I’m looking at Harm, we should have 10% as a target, and that should be realistic.
Harm Ohlmeyer: Yes. Definitely, Simon, no doubt on the 10% in the midterm, but I want to echo what Bjorn said on the gross margin. We have reached the lowest points. Q2 already, we’ll see some progress given the progress we make in China with the inventory situation, the better sell-out with our customers, largely normalized inventory situation in the next quarter in Europe. And again, North America takes a little longer, but it should sequentially improve. And then to your question on the leverage on the operating overhead, of course, we are not happy with those 33%, 34% that we have reported recently. But the key thing is to get growth into the company. But secondly, that’s what the €200 million onetime cost in this year is also for that we — if we look strategically at the right elements to put in this €200 million to have a better base for next year.
But that is something where we want to be carefully review the right actions. And clearly, the operating overhead needs to get closer to 30%, if not below 30% over time. But this is not something that we will see in the next quarter, so it will take time.
Operator: The next question comes from Adam Cochrane from Deutsche Bank.
Adam Cochrane: A couple of questions on, firstly, on the wholesale order book. Can you give us any or shed any light on what the order book position looks like for 2Q and 3Q and maybe even early signs for the fourth quarter? And then secondly, you talked about sourcing more inventory for some of your bestsellers. Can you just talk through how important that could be, how much of the demand you can fill on a reasonably short time scale for those products, which are selling well?
Bjorn Gulden: When I said we’re scaling the things that are trending, then you have to remember that many of these shoes, especially the Terrace were meant to be in what we call incubation. So they started in collabs on high end of the distribution in the second half of ’22, like the Gazelle did with Gucci. And then the plan was still to incubate it and built heat during ’23. But when I came in, the demand was so big that we said, hey, we need to scale it now. And that’s why we went from some 100,000 pairs to now actually looking at million pairs and we have done that pretty quickly, to be honest. We put brand sourcing, finance and the supplies together with the commercial team and changed all that plan already the third week of January.
