And so that investment is critical to keeping us relevant and leading in this space. So that is clearly something we are going to do with some of that gross margin expansion. Now, as I’ve said before, right, when there’s an opportunity, we see strong businesses their opportunity to reflect some of that upside. Yeah, and we did do that a couple of years ago. But first, we’re going to make sure that we’re looking at some of this gross margin expansion, investing it in the business because it’s proving well, we’re delivering exceptional results. We’re well above many of our peers in terms of operating profit. So we got to keep continuing to invest in this business. So, yeah, there is, but you know, there’s also investments that we have to make them in business.
Tom Nikic: Yeah, yeah. Understood. Thanks guys and best of luck this year.
Steve Fasching: Thank you.
Dave Powers: Thank you.
Operator: And the next question will be from John Kernan from Cowen. Please go ahead.
Krista Zuber: Hi, this is Krista Zuber on for John. Just wanted to circle back on the inventory question in terms of kind of where you see or how €“ what your level of comfort is on the inventory levels by channel, DTC and wholesale? Thank you.
Steve Fasching: Yeah, I think the €“ so speaking to our inventory, we, you know, this is something we indicated at the beginning of the year, that it was something that we would be working through this year. And I think we’ve demonstrated that, inventory levels have improved. As we’ve said in the prepared remarks, again, inventory level on UGG actually decreased, again, signaling some of the work that we’ve been doing and the improvement efforts that we’ve been making. You know, what we’re also doing is increasing our HOKA inventory. So when you got a quarter that’s growing 90%, you got to have inventory to service those sales. So we have been increasing inventory. You know, I think in terms of as we look out further, there’s still opportunity to optimize inventory levels.
But when we look at the relationship of inventory to sales growth it’s coming much more in line, we feel comfortable about our inventory, there’s always room for a little bit of improvement, we’ll continue to work on that improvement, as things begin to normalize, especially with the supply chain. But where we sit today with everything that’s going on with the growth of our brands, we feel comfortable about our inventory positions, and we’ll continue to work to optimize those levels.
Dave Powers: Yeah, and I would say from a channel perspective, you know, I think the channel is in good place with the inventory. You know, we were able to fill the bucket, so to speak in UGG last year, and we’re getting back inventory in key styles in HOKA. So I think it’s in a very healthy place and that’s reflected in, you know, how DTC exceeded wholesale growth in the quarter. Still healthy sell throughs globally. So again, credit to the teams you know managing the marketplace in this environment. But I would say, you know, from a brand health and a marketplace and a market channel perspective, things are in good shape. And, you know, in addition to what Steve said about how we’re managing and our number on levels.
Krista Zuber: Thank you.
Dave Powers: You bet.
Operator: And the next question is from Sam Poser with Williams Trading. Please go ahead.
Sam Poser: Good afternoon. Erinn, I know and thank you guys for giving part of what I always ask, but Erinn, can you give us the whole thing, please for wholesale or DTC?
Erinn Kohler: Hi, Sam, sure thing. So for the quarter global wholesale, including distributor by brand is what I’ll give you. So for UGG, that will be $374 million, for HOKA, $224 million, for Teva, $25 million, for Sanuk, $3 million. And then that gives you other which is predominantly Koolaburra, $20 million.
