And that’s some of the stuff that’s been in the 50 releases that we had during the third quarter. So just really accelerating the pace. And it’s starting to work in that as I mentioned in prepared remarks our share in digital increased slightly during the courses, so I think overall in terms of the market the forecast industry experts forecast is that the category will move from 31% in digital where it is now to about 41% over a three to five year period. We expect to at least keep pace with that, maybe accelerate faster. We certainly expect to gain share in digital. Let me address stores. Stores is an area where we were kind of overweight. We feel that we had a better store experience than anybody still do. So how come we’ve lost a little bit of share?
That’s a surprise to us. It’s a significant area of focus for Becky Behringer who leads that business and we’re leaning into it to be the best that we can possibly be I see no structural reason why we should give an inch of share away in stores. We have a better store fleet than anybody else in the market. We’re renovating that fleet as fast as we possibly can. We’re adding new technology like Crave now in 181 stores. So both channels are important to us and I’m expecting that we will gain share in each of them. TJ, do you want to take the other question?
Tim Johnson: Absolutely, and I agree with Martin’s comments on the different channels. Ike, you’re referring to the transform the foundation goal that we put out at Investor Day that was $250 million over a three-year period 2023, 2024, 2025. That was a combination of both expense and cost of goods. We did comment that cost of goods would be the majority of it. As it relates to 2023, we did say about a third or a little less than a third. So think $80 million of benefit in 2023. We did mention that the majority of that would be expense, particularly through the first three quarters of the year. And then as we get to the fourth quarter, which is where we are now, that’s when the cost of goods sold benefits would start to show up.
And that is happening. So the teams are delivering as expected on timeline, on target, from a dollars perspective. And that was one of a couple of different enhancers in our fourth quarter forecast. So as we move into 2024, the large majority of the benefit from a transform the foundation standpoint will be cost of goods and this again one of the reasons why we believe the margin inflection point at third quarter will continue through fourth and on into 2024. So we’re on track, feel good about $250 million over a three year period, feel good about how it’s cadencing through the P&L as expected.
Irwin Boruchow: Thanks so much.
Tim Johnson: Yes.
Operator: Next we’ll go to the line of Mauricio Serna from UBS. Please go ahead.
Mauricio Serna: Thanks. Good morning and thanks for taking my questions. I guess, I just wanted to [Indiscernible] first if you could talk about what was the underlying sales growth in the Adore Me brand in the quarter? And then on PINK apparel, I think the previous quarter the drag on sales was 2 percentage points to 3 percentage points, and this quarter was 3 percentage points to 4 percentage points. So just want to understand what was the driver behind that? And then just very lastly on the SG&A front, I think if I look at the guidance for 4Q, I think it implies SG&A dollars will be up mid-teens in 4Q. And that seems elevated, compared to what the growth rate was in the first-half of the year. And I know that third quarter was like the fashion show, but just want to understand what is embedded in that, in SG&A dollar growth in 4Q? Thank you.
Martin Waters: Yes, we can be very quick on the first two and then TJ, you can take the third if you wouldn’t mind. So we’re not pulling out the underlying sales growth for Adore Me. We’re not giving that level of specificity of the business of that size. Suffice to say that Morgan and team are running the business in a very smart and intelligent way. We’re seeing growth year-over-year. We’re seeing profitability. We are — Morgan and I had a conversation about this earlier this week, we’re seeing very smart investment in marketing. If the investment makes sense, if the [Indiscernible] is there, then we’ll make it. If it’s not, we won’t. So I feel very good about that management team and the capability that we have in that team and we can learn an enormous amount from them.
So super excited about Adore Me, but not breaking out any specificity for that business. As it relates to PINK apparel and the drag, there isn’t really a material difference between Q2 and Q3. There’s maybe a point either way, but it’s not material. The extent of the decay in that business is a significant cause for concern. It was identified a year ago. We’ve been putting strong steps in place. As I said earlier, we’ve seen some green shoots that we’re focused on. The main recovery will come in 2024 when we can really start to be more aggressive with our buys. TJ, on SG&A?
Tim Johnson: Yes, on SG&A, Mauricio, the growth year-over-year in the fourth quarter is a combination of probably four or five different factors. I think the first one is obvious in that Adore Me is in our numbers this year, was not in our numbers last year. I think the second one is also pretty clear that we have an extra week of both selling and expense that flowed through the fourth quarter this year, compared to last year. Next, continuing the trend of the year, investments in technology, which are showing up in enhanced digital capabilities and also completing separation efforts that’s an ongoing activity. I think the next item of note it would be based on the improvements in trend in the business in third quarter and in early fourth quarter, we do believe that incentive compensation expense will be up year-over-year.
Again, last year at lower levels, this year performing closer to our internal budgets and expectations. So those are probably the four or five biggest items, Mauricio, and then some other items down below, or smaller in nature would be timing between third and fourth quarter or going into next year. So I feel very comfortable that the core operations of the business from an expense standpoint, so how we operate stores, how we operate our distribution centers, how we’re managing headcount and costs. I feel very good about those disciplines throughout this year and as we head into next year.
Kevin Wynk: Ivy?
Operator: Next we’ll go to the line of Jonna Kim from TD Cowen. Please go ahead.
Kathryn Ann Hallberg: Hi there. Thank you for taking our question. This is Katy on for Jonna. Just first on the holiday season, you know, what do you believe will be the key drivers there and how much of that is related to promos versus newness and just category strength? And then my second question is on the beauty category. What do you think is driving the strengths in that category? And how do you see that assortment fitting into the larger Victoria’s Secret and PINK Brands over time? Thank you.
