David Allemann: What we see is that On is hot in both channels. Marc elaborated on the opportunity that we have in the wholesale channels, that we are just at the starting line with our adventure with sporting goods, at the very beginning in Footlocker, but in many other key accounts. Then if we look at our e-comm business, we see the strong momentum also now at the start of the holiday season, we have seen the strong momentum that we had in China. And then we continue to expand our own retail business with the store now in L.A., but then also the expansion in London and Miami earlier next year. We’ll also continue to open new stores in China. So we will drive growth in both channels, and that’s important for us and important is that the customers have the best experience in both channels, that they find the product where they want to shop for the product and that we talk to the right customer in those channels, that we attract new customer groups to our products, and therefore, we are less managed the share of the different channels, but the health of the 2 channels.
But we see strong momentum and growth opportunities in both of them.
Operator: The next question is coming from Abbie Zvejnieks from Piper Sandler.
Abbie Zvejnieks: Great. So just broadly, I guess, how are you thinking about your consumer and how they may be more resilient in the more difficult macro, given the performance aspect of the business? And then it’s great to see inventory levels back in a better position to fulfill that strong consumer demand for the brand. So can you just talk about your — how your lead times have evolved, and your ability to adjust your forward inventory receipts either up or down based on kind of changes in consumer demand in this uncertain environment?
David Allemann: Abbie, It’s a great question when we — sorry, Marc. When we founded On, Abbie, we came right out of the financial crisis. And then, as a young brand, we asked ourselves, what does that mean now in that part of the cycle? And back then, we realized that people are cutting down on some investments, but — and they’re very much still focused on something that keeps them healthy, and that is running. And it’s also one of the most accessible sports, one of the most cheap sports. The only thing that you really need is a good running shoe. That gives you a unique sensation, but also keeps you injury-free. And that’s how it played out back then that we saw still people focusing on staying healthy. So we can’t predict the future, but that’s at least the tail from the past.
Martin Hoffmann: Maybe I take the question on inventory. So we mentioned it on the call. We are in a very strong inventory position. And it’s important to understand that we have flown a lot of products that were produced right after the lockdowns, and they have been — they have reached our customers already. So what we put on the ships later on was fresh products. So our warehouse is — and the inventory levels there is really in line with what we expect to deliver in the next 1.5 quarters. And then it’s also important to understand that, as a premium brand, we have relatively long lead time — or product life cycle time. So it allows us to correct also some excessive positions that we have on certain products without going into this discounting.
And if you look at the growth that we have seen in inventory versus last year, then majority of — part of that growth is coming from growth in our warehouses, but that’s more 60% growth. So it’s fully in line with our sales growth. And the rest is really the — that we filled the in-transit inventory because we started to put products back into sea freight versus airfreight.
Operator: The next question is coming from Aubrey Tianello from BNP.
