The good news for PINK is that our international business is strong and continues to be good. It has been — intimates has been increasing as a proportion of the business over the last several years steadily, it is our focus. We are a lingerie company and being best at bras in both of our big brands is the most important thing to do. So that business in PINK intimates is healthy and growing.
Timothy Johnson: Yes, Corey, on the second part of your question, I can appreciate the flat EBIT rate guide for the year. We would expect in fairness to your question, we would expect the gross margin rate for the year to be slightly higher than last year. As you mentioned, the supply chain pressures certainly have abated. As we move into the fall season, we’ll see if there’s the typical kind of seasonal build in rates or not or where rates go. But clearly, here in the spring season, rates both on a container basis and from an air perspective, are lower than last year and getting back close to pre-pandemic levels. So good for us. We’re happy about that. I think the flip side is, from an SG&A perspective, and we kind of mentioned this earlier, we’ve known all along, there were certain parts of the business that we were going to want to invest in here in 2023.
As I mentioned, just as a side note, the expense profile for Adore Me is slightly different than ours that’s some deleverage on the SG&A line. However, we’re really seeing investment is in, I’ll call it, three key areas. First off, technology. As we start to increase the amount of focus on the customer experience and customer integrations with Christophe and her team, that’s an investment. We’re happy to make, and we’re confident we’ll see benefits from that as we move throughout the year. I think the second piece is, I’ll just remind people that we are in the middle of separating from our former parent company or limited brands, separating into two different business, Bath & Body Works and Victoria’s Secret. From a technology standpoint, a separation, we indicated in the two brands that there would be a $200 million to $300 million incremental spend in terms of technology and that each business will have roughly half of that.
So, I’m happy to report that from a VS perspective, we’re trending towards the lower end of that technology spend as it relates to separation. Having said that, the bulk of the large systems to be separated, the bulk of the labor and activity associated with that is right in front of us right now. Having separated a couple of systems successfully already in the month of February, we have many more to come here in the spring season. So, the point in mentioning that, Corey, is the cost associated with that will peak during the spring season or in 2023, that’s an investment, again, we’re happy to make. I think the second piece, building on Adrienne’s question, we’re going to continue to lean into the marketing spend to invest in the business, both at top of funnel and also to support the new version of our fashion show, which is to come later this year.
So, we’re going to invest in our marketing expense. We’re going to invest in store of the future. As Martin mentioned, roughly $100 million increase in store-related capital associated with taking store of the Future from being 2% or 3% of our fleet at year-end to upwards of 10% or more as we exit 2023. And then the fourth item I’d mention as it relates to SG&A increase year-over-year. Clearly, 2022 was a difficult year for the business and the level of incentive payout reflected that. As we come into 2023, and we established new targets. Obviously, we refilled the incentive bucket that would be an increase year-over-year for achieving these targeted levels of profitability or better. So hopefully, that helps Corey understand where there are three or four areas where we’re making investments for the future of the business, even though the current environment remains a bit challenging.
