Jonathan Sinclair: It’s Jonathan. Our gross margin story has been very much consistent over the years. We’ve been very clear that, over the longer run, we’re talking about mid-70s in DTC, mid, high 40s in wholesale. At the moment, we’ve got a tailwind of FX. So hence, this year, we’re somewhat stronger than that in wholesale. But the reality is that the way we manage this is that we mature the margins as the category grows. And so, back in the Investor Day that we did in February this year, we deliberately printed the consolidated gross margin for lightweight down to illustrate the fact that it’s very close to the corporate margin. And that’s important because, as that category has built out to a meaningful second pillar in this business, what we’ve been able to do is to grow the gross margins back to the level that we would expect them to be as a mature category.
So you correctly assume that, for example, footwear margins are not that strong right now. But that’s okay. Because we’re on a trajectory. And if I stand back from all of this and I go back to, call it, 2018 when we were, let’s say, 85% heavyweight down and concerned that mix has gone down to sort of low 60s, our margins have stayed the same. So what we’ve been able to do through that journey is actually manage the overall algorithm to accommodate the maturing and improving gross margins outside of heavyweight down and balance the tailwinds that we create with the investment in product development and investment in scales until that point happens. So I hope that gives you a sense of it. We’re certainly not changing our perspective on the sustainability of those gross margins.
Nor are we expecting to raise them overall because one of the key components is that we continue to invest new product development, new categories, but we need the space to do it within the overall gross margin.
Rick Patel: And you also touched on an improvement in late October. Can you just expand on that? Does that reflect marketing or product activation? Or is it a function of just week to week volatility?
Jonathan Sinclair: You’re right. We do touch on the fact that we’re seeing sequential improvement. And I think that’s, obviously, key. Inevitably, there are activities that we do as we get into peak season. That’s true every year. I think, around us, you’re also getting the advent of fall, which you’re probably seeing and feeling firsthand. And as that happens as well, you’ve got the coalescence, if you like, of the activity that we’re undertaking and the climate becoming a little bit more seasonal. And so, the two come together and the business starts to build.
Dani Reiss: Absolutely. It’s the time when we expect to see this happen. This is where our business – the flow of our business every year. And starting in September, every week is bigger than the previous week. The acceleration we started to see towards the end of October, it’s promising. And it’s not enough yet to indicate a complete shift in trends, but it’s certainly a respite and we’re optimistic about it.
Operator: Our next question comes from Robbie Ohmes from Bank of America.
Robert Ohmes: I was curious, if given the sort of change in the global operating environment, if you’re thinking about changes in the promotional strategy for Canada Goose to drive better response from customers and also just with the weakness in the wholesale channel, are there any thoughts of any adjustments to strategy and wholesale, like, maybe more of a relationship with Amazon or other distribution channels to sort of support revenue growth in this tougher environment?
Dani Reiss: From our point, there’s absolutely no change with regards to our strategy. [indiscernible] brand, our product sells through very well at full price and the value that is inherent in the products that we build here in Canada is something that our consumers recognize and know. The demand that we build for our products is something that we’ve always taken great pride in. And so, yes, we have no plans to change our strategy.
