Alexandra Straton: Great. And congrats on another really great quarter. I saw that you guys took the SG&A guide up a bit for the full year. So I’m just wondering, can you just review what’s driving that? And should we think about that as moderating next year? Or what are your priorities going forward? Then just one quick second one. I think you mentioned numerous quarters of ASP growth that you guys have posted. How much pricing have you taken versus pre-COVID levels? And are you expecting to take more in the upcoming seasons? Or how should we think about that?
Matthew Friend: Sure, Alex. Well, we wanted to sharpen our guidance as we finish this fiscal year. But maybe to take a step back for a second as it relates to SG&A, we started the year with an SG&A guide of high single digits to low double-digit growth. And at the end of the first quarter, when we saw the change in conditions, we decided that we were going to prioritize our efforts around inventory liquidation and getting back to a healthy pull market. And so what we said was that we were going to prioritize the investments that we’ve been making for several years in our consumer-led digital transformation, the capabilities and the ways of working that are enabling us to create a new operating model for NIKE. And we would manage expense growth tightly, and we would reduce our planned head count growth.
And we’ve absolutely done that over the last two quarters and feel very good about the momentum that we’ve been making with regards to ensuring that our resources are flowing towards the priorities that we have. And we’ve got some exciting things that are going to land from a transformation perspective in the next six months. When you step back even further, our revenue guidance at that point in time was for low single-digit to mid-single-digit revenue growth. And given the brand momentum that we’re seeing, our updated revenue guidance now being high single-digit revenue growth, I’m actually quite proud that we’ve been able to manage expense growth on a variable basis even as we’ve seen our revenue continue to increase. And that focus and attention on expense growth or managing expense growth and head count growth, we definitely intend to carry into our next fiscal year.
As it relates to your question about ASPs and pricing, we’ve increased prices this year mid-single digits on average across our portfolio. As I think I’ve said in prior quarters, it wasn’t a peanut butter across every product in style. It was a surgical approach, but on average, it averages out to mid-single-digit growth. As we look ahead to next year, we’re absolutely continually looking at the profitability of our product, we’re looking at inflationary costs in supply chain and also inflationary costs that are impacting the make of our product. And we will continue to focus on managing those levers together in order to try to drive profitable growth going forward. I’ll give you more guidance next quarter on the specifics, but that’s absolutely our strategy and the way that we’ve been managing product pricing and margin for many, many years.
Operator: Bob Drbul from Guggenheim is up next.
Robert Drbul: Just a couple of questions on inventory. You made a lot of progress with your numbers. Can you talk about two pieces I’m interested in, wholesale inventories, meaning at the wholesale level at your retail partners, where you see the channels, specifically in North America, maybe even in Europe. And then on the apparel side, that’s been where you had a lot of excess inventory. Just wanted to understand your sort of learnings from working through all the apparel? And maybe you could give us an updated outlook on how you think apparel is positioned over the next few quarters in the pipeline there?
