As we look ahead to fiscal 2024 and the mid-single-digit guide, it starts with the approach that we’ve been taking around assessing marketplace health and our consumer trends and then the pressure that we see – the potential pressure that we see on the consumer. And so, we made a decision to tighten our first half buys and continue the trend that we had done in the second half, but we are expecting retail sales to continue a trend, so retail sales to the consumer to continue a trend of growth versus the prior year. And actually, when we look at the first half and the second half of next year, we’re actually planning for a fairly consistent level of retail sales growth to the consumer. The distinction with the first half is that we’re continuing to manage marketplace inventory and continue to just manage marketplace health.
NIKE Direct is going to continue to lead our growth. And when we look at next year in the second half, in particular, we’re excited about the new products that we brought to market this year and scaling them next year. We’re excited about new product introductions and then ultimately capturing the energy around the Paris Olympics, which is a wonderful moment for NIKE. But mid-single-digit revenue growth on the full-year, and that includes four points of non-comp headwinds from wholesale shipment timing in fiscal year 2023, plus some of the accelerated liquidation activities that we have. So, all told in this environment, we feel like mid-single digits is a great number.
Operator: And Jim Duffy from Stifel is up next.
Jim Duffy: Thank you for taking my questions. Some great progress on the inventories, and you spoke to an improved inventory posture in the marketplace. Just thinking about competitive dynamics, can you elaborate on your expectations for the promotional backdrop in fiscal 2024? And then related to that, you were very promotional clearing inventory across fiscal 2023, how does that factor into your outlook for the mid-single-digit growth and specifically the growth for the DTC business? Thank you.
John Donahoe: Sure. Well, Jim, I would say, in general, the marketplace remains highly promotional. And when we step back and look at the actions that we took last year, we’re very happy with where we finished the year. In fact, our inventory levels are ahead of our plan and ahead of the competition. We saw total marketplace inventory units down versus the prior year. And when we look at NIKE-owned inventory in particular, we feel incredibly good about where we are and the plans that we have going into the first half of next year. The large majority of our strategic partners have also done a beautiful job moving through the inventory and balancing the trade-offs of investing in consumer connections, elevating the retail environment, and moving through inventory.
And so, we feel great about where we are, but we recognize that next year, the environment is going to continue to be promotional and that even puts pressure on our wholesale partners in terms of how they think about managing through the first half of the year. And so, we believe that the right focus and attention for NIKE is to focus on recovering a higher level of full price growth in fiscal year 2024, profitable growth, full price growth. The mid-single-digit guide does reflect four points, as I mentioned, of non-comp impacts, which are partially wholesale shipment timing because you recall last year, there was a lot of late supply from 2022 that came into 2023, but also a little bit of extra liquidation as we were more aggressive in moving inventory both through our own channels and our partner channels.
But when I look at our growth plan for next year, adjusting for the comp headwind and look at the profitability recovery that we see on the margin – gross margin and EBIT line, I feel like it’s a great plan and sets us up well for long-term growth and profitability.
Operator: Your next question is Kate McShane, Goldman Sachs.
