Dave Powers: Yeah, I mean certainly we’re still dealing with normalization of the business, you know, from COVID and some of that is related to refilling the marketplace of inventory coming off the peak, balancing that out. And so you know, right now, where we sit right now, we’re probably looking at low-single-digits, just to be prudent and as we reset the marketplace. You know, I am very excited about the product pipeline and the new leadership under Anne and the way the design teams and the marketing teams are collaborating globally for this brand, you know, we’re getting better at this every day. And so I think the opportunity is there, but we’re still trying to navigate and make sure we set the marketplace correctly. Right now, it’s extremely well managed globally.
The inventories are clean and healthy. We have some inventory a little bit to work through here and there. But the long-term outlook for this brand, I think is exciting. But I would say where we sit now in the shorter-term, it’s you know we’re looking at low-single-digits, knowing that the environment and the global macroeconomic situation is still a little bit challenged. Different than HOKA, because that’s, you know, more of a hyper growth. And so a lot of people haven’t heard of the brand yet across the globe or UGG is obviously a household name. And it’s about fine-tuning the product assortment being meaningful to each of the consumer segments, and managing the marketplace globally, while driving a healthy DTC business to improve margins.
Tom Nikic: Understood. And if I could just follow-up on margins real quick. So you know I think you did talk a bit about normalizing promos, but or normalizing discounts or whatever. But on the gross margins, it would seem like there would be you know some kind of good guys over the next 12 months as well, you know, kind of freight rolling off and FX, I guess, turns from a bad guy to a good guy and channel mix and brand mix, et cetera. So, definitely seems like there’s a fairly bright gross margin outlook like, you know, how should we think about the drop through to EBIT margins? And I know you want to invest in the growth of the brands, but you know can we see EBIT margins creep higher over time?
Steve Fasching: Yeah, Tom this is Steve, I’ll take that one. And you know, we’re not giving guidance yet. And it going a little bit to what I said in the prepared remarks. And so, we are experiencing improvements in gross margin, you’ve seen it in Q3 as you model it in, you’ll see it in Q4, where that’s largely coming from the freight. So you are right, we’re seeing freight rates come down. In the current quarter, Q4, we’re going to benefit from that, we’re seeing that increase. Overall, there still is, you know, an FX headwind. So for the year, as you can see in our guidance, we are lower on a gross margin basis, we’ll continue to see some improvement with ocean freight, but it’s going to be at lower levels than what you’re seeing come through in the current quarter.
So there will be to your point a little bit of a tailwind, we’ll see what happens with currency, right. Currencies turned more beneficial to us. It’s in kind of mid-to-late Q3. We’re seeing some of that, but it’s still down from a year ago. So to your point, we’ll see what happens. There is a potential there, you know, for some improvements that could contribute to the gross margin. But as I also said, you know, we’ve tightened our belt this year to deliver on what we guided, we’ve held off on some investments within the business to continue to deliver within that range of guidance, and so we’re evaluating it. And while we haven’t given guidance on next year, we do expect there will be some gross margin expansion. And we’re going to use that to invest in the business, especially in the competitive nature of where this business is and what we’re doing with our brands.
