And then into brand, being a dual gender brand that has permission across wear occasions from pinnacle, podium sweat, all the way through lounge and social, we believe is incredibly unique. And we bring that performance perspective to all of those needs of the guests. And then into the agelessness of that the brand where if you look, and I’ve said before, you go to stores mom, daughter and grandma can be shopping in the brand and are actually advocates of the brand to the others. And I think that’s rooted in the notion of the solutions that we offer and provide for. That stack when I go through the competitor list, I don’t see anyone that compares to that. And we think that is really the strength of this brand and where we look to disrupt ourselves, where we look to invest and definitely fuel and plugs into our momentum, but that’s how we compare and look at ourselves and see a lot of strengths in that and the ability to keep driving our business.
John Kernan: That’s very helpful. Thanks. Meghan, just a follow-up. Maybe shifting more towards the model, the decision to go towards a geographic level disclosure versus the channel disclosure before. How should we think about omnichannel comps going forward? You’ve obviously made some big investments across stores and digital. I think you focus more on co-located stores recently and larger stores. How should we think about the balance between corporate store sales and DTC now?
Meghan Frank: Yes. So we have shared when we set out this Power of Three x2 plan that we expected e-com to grow slightly ahead of our CAGR of 15%, sales CAGR in stores is slightly below. I would say, over the long term time period, that view hasn’t changed. We’ve seen, I would say, strength in both channels, coming off of 2023 e-com total growth 17%, stores 21, e-com comp at 17, and stores at nine. So continue to see opportunity across both channels and leveraging that omni ecosystem.
John Kernan: Got it. Thank you.
Meghan Frank: Thank you.
Operator: The next question comes from Paul Lejuez with Citi. Please go ahead.
Kelly Crago: Hi, thank you. This is Kelly on for Paul. I just wanted to follow up on the slowdown that you’re seeing in the US currently. Is one category or gender driving the slowdown, or is it more broad-based? And then secondly, I’m just curious if you’re assuming some pickup in traffic in the US as a result of some of these marketing investments you’re making in 1Q as we move throughout the year. Thank you.
Meghan Frank: Hi, Kelly. I would say, the slowdown we’re experiencing in the US is fairly broad-based. As Calvin mentioned, we have identified some opportunities that we can go after and product specifically on color and on women’s sizing, so on the zero to four size range. And then in terms of traffic, we do have, you’ll see in our guidance, Q2 through Q4 is — the growth rate is slightly ahead of what we’re guiding to in Q1, given Q1 guide at 9 to 10 and then the full year at 10 to 11, excluding the 53rd week.
Kelly Crago: And just to clarify, is that being driven by what you would expect to be an improvement in the US relative to what you’re seeing in 1Q?
Meghan Frank: Yes, we’d expect some marginal improvement.
Kelly Crago: Got it. Thank you.
Meghan Frank: Thank you.
Operator: Your next question comes from Abbie Zvejnieks with Piper Sandler. Please go ahead.
Abbie Zvejnieks: Great. Thanks for taking my question. And just a follow-up to that one. I mean, what exactly is driving those 2Q through 4Q improvements in the US? Is it product? Was there something that we’re lapping in 1Q that we should think about? Any color you have there. Thanks.
Meghan Frank: Yes. I would say it’s a modest acceleration in Q2 through Q4 and really pointed to some of the investments we’re making on the marketing side in terms of new guest acquisition as well as some of the product opportunities that Calvin pointed to would be drivers of that.
Calvin McDonald: Yes. I’ll just add some of the products. As we obviously mentioned that we’re chasing color and size, and we expect that that will continue to improve starting in Q2 through. In fact, we’re seeing. And as color hits now, the guests respond incredibly well to it. Q2, our business shifts from leggings. It’s still an important part, but shorts and skirts plays a much greater role and we’re seeing good results in that assortment in response to the guests now. And then the innovation that I alluded to, we have a hydrogen yarn legging coming out in summer for yoga. We have the Support Code Bra, which is one of our further proprietary technology innovations coming out later in Q3. And then we have another innovation in leggings for the back half in the Train category. So there’s quite a bit of product innovation. I mentioned men’s, just highlighted women’s that we see playing a positive through the back half of this year.
Abbie Zvejnieks: Got it. Thank you.
Howard Tubin: Operator, we’ll take one more question.
Operator: The last question comes from Ike Boruchow with Wells Fargo. Please go ahead.
Ike Boruchow: Hey. Thanks, everyone. I guess maybe for Meghan or Calvin, is there any way you’re able to let us know what comp you’re specifically modeling for Q1 and for the full year specifically, based on your guidance? And then just a follow-up to that, maybe this one’s for Meghan. Gross margin is flat for Q1 in the year. But clearly, lots of outperformance overseas. We know that’s a higher-margin channel. I’m assuming that means the North America — the Americas gross margins are going the other way. I guess just could you comment on that if that’s correct or just something that’s driving that, is it markdown or is it just deleverage? Just kind of curious how you think about that.
