Joanne Crevoiserat: Yes. Let me kick us off with how we’re thinking about driving growth into the future, particularly in North America, but also globally. I think as we leverage our direct-to-consumer model and our platform, one of the things that we’re really focused on is making sure that we drive growth with our customer file, both an acquisition as well as average spend per customer, which you saw in the second quarter, a continuation of that trend. So leveraging that direct relationship that we have with our customer and staying close to that customer and driving more. So that means that we have to show up where they are. We have to be investing in marketing, taking advantage. So that’s first, deepening our relationships with our customers.
Second is delivering compelling product and innovation. And we’re focused on that and doing that every day. And maybe Todd can talk about some of the great innovation that’s happening at Coach, and delivering compelling omni-channel experiences. So this was a quarter where we saw customers come back into our stores. And we have the advantage of having two very profitable channels to meet our customers where they are. And that customer is increasingly omni-channel, shopping across both channels. So those are the real keys to — and I should say that omni-channel customer is spending more with us. They’re our highest lifetime value customers. So leaning into our customer relationships, our product and product innovation, including our lifestyle categories for growth and meeting them where they are in an omni-channel basis.
And all of those things you can see came to bear in the second quarter. And as we continue to further our strategic agenda going forward, we think that will drive our growth. But maybe toss it to Todd to talk about Coach.
Todd Kahn: Thanks, Joanne. A couple of things to reinforce. First, we did add 1.5 million new customers that Coach this last quarter in North America at average higher AURs. So we are — the expectation of the AUR and where they enter the brand is different than in years past. Second, as I said before, emotion always comes price. So when we think about bag size, the correlation between — yes, if you have a very large bag, typically you have a higher AUR. But some of our highest AUR bags, as I indicated, with the heart bag in outlet. But if you take Bandit, if you take Tabby, if you take some of these beautiful bags these families that are iconic that we add texture and different materials, we command higher AURs, whether it’s Shearling or Pillow tabu or other opportunities to take a family, create an icon and expand on it and grow our AUR.
So again, I am not as concerned by whether we sell large bags or small bags, I’m concerned about bringing in a customer, creating a connectivity and making sure we have them and that they believe that the Coach brand represents their values, and that will create a sustainable, profitable growth for us in the future.
