That said, we are in still a very inflationary environment, and so there’s headwinds on labor costs and headwinds in other inflation that we’re still working through. So, lots of moving pieces and we’ll give you more of an outlook into that as we put 2023 together. But certainly, we’re focused on the long-term goal of getting the company back to a better operating margin with profitable sales growth.
Mark Altschwager: Thank you. Best of luck.
Katrina O’Connell: Thank you.
Operator: Your next question is from the line of Brooke Roach with Goldman Sachs. Your line is open.
Brooke Roach: Good afternoon and thank you so much for taking the question. I wanted to narrow in on Athleta, which had a nice comp improvement this quarter on both a sequential and a three-year stack. Can you reflect a little bit more on the drivers of the sequential improvement? And do you think that the three-year stock trend is sustainable from here on out? If that is the case, what is the segment profit margin that you expect for this brand ending the year? And how does that compare with your view of long-term segment profit operating margins for the business?
Katrina O’Connell: Yes. Brooke, I mean, we were pleased to see Athleta return to the positive 6% growth flat comp, which was a meaningful improvement. NDD came out with the industry growth yesterday for the quarter and the women’s active market is down negative 7%. And so Athleta’s growth in the quarter does show that they are taking market share even as that active market is slowing a bit after a few years of significant growth. So we do feel like we’re starting to see a little bit of rebound in some of the performance product as well as, as Bobby said in his prepared remarks, really winning on a lot of the lifestyle products that they’ve been able to compete well in, as they’ve been able to balance sort of performance and lifestyle as a lifestyle active brand.
As far as the three-year stack going forward, I guess, we’ll see, but certainly, our aspiration is to continue to be driving profitable sales growth at Athleta. We don’t report on the operating margin segment, but certainly, I appreciate the question. And so, with that, we’ll probably not comment on that at this point.
Brooke Roach: Okay. Thank you. One more question, if I may. As you contemplate the mid-single-digit sales decline that you forecasted for 4Q, can you help us a little bit with any quantification that you might be able to share about the franchise impact and the holiday event pull-forward impact within that? Thank you.
Katrina O’Connell: Yes, sure. We haven’t quantified that, Brooke. And so, I think it’s just fair to say that the dynamics are such that, we did say it was a slight impact from the October promotion in Old Navy. And then, the franchise sales timing is a modest impact. Gap had the Yeezy impact. It’s a point to them. It’s probably less — more modest than that for Gap Inc., so sort of all those things together. And then on top of that, as we said, we’re really just trying to remain prudent about the consumer and the environment heading into holiday, so that we do allow ourselves the ability to sell through the product as we need to as we enter into next year. So, hopefully, all those drivers are helpful, but I don’t think it’s any one single driver. It’s really everything together that’s adding up to that outlook.
