But I think what’s important is that readiness shows up in profitability. Even with a lower European revenue outlook for 4Q, we expect European profit to be up over 30% versus last year in the fourth quarter. So, I think that ability to manage profitability moving into 2024 remains full. I think to answer your question on 2024 around managing operating margin in a potential flat environment, absolutely. Our commitment is to deliver on our operating margin commitments regardless of where the top line is. And I think we can look no further than 4Q for our success in doing that right now, and we’d expect for that success to carry forward into the to 2024 as well.
Stefan Larsson: And just building on what Zac was saying here because across the world in all our regions in a tough macro, we have the strength of having in Calvin and Tommy, two of the most iconic beloved brands in the marketplace. And we have the brand building plan in PVH+ and we gain increased traction when we lean into the PVH+ execution. So, from that, you will see continuously that what’s within our control, we will continue to improve step by step by step. And the margin is the most in our control. That’s why you hear the confidence from Zac.
Operator: Our next question will come from Jay Sole with UBS. Please go ahead.
Jay Sole: Great. Thank you, so much. Stefan, I wanted to follow up on your comments about the success you’re seeing at Macy’s. If you can connect that to the transition that’s ongoing with G3, does it — the your seeing it makes give you the confidence that you’re building the teams and the capabilities to be able to replace those revenues that G3 currently has within PVH as the transition continues and continue to build a big business and really capture all that opportunity that’s out there financially as that transition takes place?
Stefan Larsson: Thank you, Jay. Great question. Yes, very encouraged by the progress we are seeing with Macy’s. And this is also building on my experience being part of repositioning Ralph for sustainable growth. A number of years back, we did exactly the same thing. We partnered with Macy’s and made sure that Macy’s became our best full-price expression, and that’s what we are doing. And we did in our own-controlled men’s and underwear today and both Calvin, and Tommy, and it’s really working out. And it’s the same confidence we have when it comes to taking back the licenses over the multiyear period with G3. We are already working on making sure that the product strength — the category offense is there, the product strength is there and the pricing is there.
So yes, equally confident when it comes to men’s and women’s and the strength of Calvin and Tommy with the Macy’s consumer. We are early on in doing a very deep consumer and brand study globally. But when we start to break that down into North America and in Macy’s, we see the incredible strength that both Calvin and have Calvin and Tommy has with the Macy’s consumer. So, an incredible awareness in very strong consideration and very strong brand lab. So, we have all the pieces in place from the consumer love for our brands and putting all the pieces in place for successfully taking back the licenses. So very encouraged.
Operator: And that question will come from Dana Telsey with Telsey Advisory Group. Please go ahead.
Dana Telsey : Nice to see the progress. Just continuing on the thought of the wholesale business, which is so important in the progress that you’ve made in America, as you mentioned with Macy’s, during this time period in Europe where the macro is more a little bit more challenging. Are there relationship enhancements or business enhancements that are being done on the wholesale side in Europe that can mirror North America? And are there partners like Macy’s that you see as dominant in Europe is what you see here in North America? Just can put some color on the wholesale in Europe and that potential. Thank you.
Stefan Larsson: Thank you, Dana. It’s also an important question. So, we have market-leading strength in Europe and very strong partnership with the strongest wholesale retailers. And when I look back at the past few months, when I referenced seeing 50 — over 50 stores and doors in five, six countries also met with key partners like Peak & Cloppenburg, Zalando. So very much focused on the same thing, next-level PVH+ execution. So, to your point, there is the strength in the brands and the consumer love is unprecedented for us in Europe. And then the strength when we lean into essentials and we build out choices of our best essentials must-haves in the market when we have the right newness when we have the right cut-through campaigns, when we partner with our wholesalers to amplify that with the strength in products, strength, and talent and strength that the retailers have, it’s very encouraging. So overall…
Dana Telsey : Thank you.
Stefan Larsson: Thank you, Dana. So overall, thank you very much for joining our call today. As you can hear from us, we feel very strong about the increased traction we get on the PVH+ Plan. We recognize the tough macro we are navigating. We also recognize the strength that we have in our hands with these two very strong brands. The plan and the execution strength that comes out of that plan that we are just in the beginning of So looking forward to catching up next quarter on the progress that we will be relentless in driving. And then ahead of that, I just wish everybody a really happy holiday. Thank you.
Operator: This does conclude today’s PVH Third Quarter 2023 Earnings Conference Call. You may disconnect your line at this time, and have a wonderful day.
