So the range of product offerings we have on the Polo brand and the skew to our sweet spot, which is this elevated casual, I think, sets up to run nicely, not just for outperformance now, but for the future. Jane, I’ll turn it over to you for the second.
Jane Nielsen : Yes. On some larger-picture perspective now, we feel that this year’s performance is consistent with our FY ’25 guidance of getting to a mid-teens OI margin. And we feel that because our — despite some macro choppiness, our strategy is working. Again, this quarter, we were able to offset inflation, putting up a 10% AUR growth. And what undergirds that gives us confidence is that our consumer value perception rating again this quarter improved and is obviously improved from the pre-pandemic level. So the consumer is giving us confidence in our ability to navigate with gross margin — holding and expanding our gross margin over the next several years. We also have a robust productivity plan that we outlined. We’re still committed to delivering this $400 million over the life of the plan in productivity savings.
We’re investing in that, and we’re seeing the benefits of that in our supply chain, in our buying groups and in just our cost management. And you saw that flow through this quarter in our expense management and beating our OI margin guidance. So those are things that are giving us confidence encourage, also the resiliency of Asia; multiple countries delivering strongly and the resiliency that we see in our China business and Europe continuing in a difficult environment to outperform. All those things are confidence builders that 15% is the right margin. On North America next year, I think that we’ve outlined as called out for the last couple of quarters, the pressure on the value consumer, I think we’re responding appropriately and well within the guardrails of our strategy.
So we’re still confident in our outlook for growth in North America next year and are pleased with the progress we’ve made since the reset putting it on a healthier base. So absolutely, yes.
Operator: The next question comes from Michael Binetti with Credit Suisse.
Michael Binetti : Congrats on a really nice holiday. How much of the AUR increase going forward is North America driven? And within that, how much should we think about from here is from SKU mix or channel compared to a like-for-like pricing opportunities? And then Jane, it feels like the right time to ask, North America margin crossed above pre-COVID levels this quarter for the first time in a while. It was nice to see. Could you outline bridge for North America operating margin to get back to the 21%, 22% zone that it was in prior to COVID. You’ve given us some of the components like digital being accretive, those kinds of things. You know our bigger businesses today. I’m curious what your thoughts are there.
Jane Nielsen : Yes, sure. Let me take the first part of your question, which is AUR base. So as we move forward in this pricing journey, you’ve seen us continuously put up AUR increases across all three regions. Again, this quarter, we saw Asia, which is furthest along in the journey put a very strong AUR delivery, but more modest than the rest of the regions because they’re further along in their journey. So fully offsetting inflation and expanding gross margin. Europe, which is in the middle of the journey also put up nice AUR expansion as did North America. I do believe that because North America is earlier on in his earnings that they will be slightly outpaced in progression through this long term — through the length of our plan, and they’re certainly positioned to offset inflation through the length of this plan.
