So we feel really good about those growth platforms. In Canada, as our longest-standing international market, continues to diversify their channels to market, continues to grow the corporate sales, continues to drive the customization, has great wholesale partnerships. So overall, I think we’re at the mode where that accelerant is something we’re putting some energy into to the previous question and putting kind of smart dollars behind it. I think as far as the target of where it can go, when we first — when we were kind of talking about 0 international sales, we put illustrative examples of brands that were U.S.-based that have grown internationally and that’s where the 30% came. It was never necessarily a target. But as you look at the opportunity that we’re proving is out there and then the opportunity we haven’t yet tapped, we haven’t put a cap on what we think international can be as far as a contribution to YETI.
Michael McMullen: Peter, this is Mike. The only thing I’d add is in terms of why we didn’t adjust the guidance and I think it comes down to just — it’s 1 quarter, it’s our smallest quarter. Still have a lot of the year left to go. If you take the full year guide and kind of back out the Q1 results, you’re still in that range that we’ve talked about of 20% to 25% growth for the year. But obviously, as we think there’s a lot of momentum here, we think there’s opportunity here for us, not only this year but long term. But for now, we’re going to sort of hold our guidance for the year. We’re just focused on delivering the 7% to 9% for the company overall and we feel like International is going to be a big piece of that.
Operator: And now we have a question from Brooke Roach from Goldman Sachs.
Brooke Roach: Where do you think a sustainable long-term margin path might look like for the brand as you increasingly diversify your business into new categories and geographies relative to the prior rates that you achieved in 2021?
Michael McMullen: Brooke, I think the front end of your question, at least on our line, cut out, so I apologize but could you repeat the question?
Brooke Roach: Yes. Sure. Can you hear me now?
Michael McMullen: Yes.
Brooke Roach: Great. I was just hoping you could help us understand where you think the sustainable long-term operating profit margin path might look like for the brand as you diversify your business into new categories and geographies relative to the 2021 prior peak?
Michael McMullen: Brooke, it’s Mike. Thank you for the question. So as we’ve talked about, we believe that as we — that we’ve recaptured a lot of the inbound freight cost peak that we saw in the 2021 and 2022 time frame. We are at a point that now we’ve captured that, we believe we can start to kind of build back operating margin over time. I think you’re going to see that in sort of 2 ways. Obviously, 1 would be continue to drive up gross margins through sales mix, supply chain efficiencies, product cost efficiencies. And 2, we believe that over time, we will begin to — we will start to get leverage on our SG&A. There’s going to be quarters here there where that may not — you may not see that just quarter-to-quarter variability.
But over the long term, that is absolutely our goal and is absolutely what we believe we can deliver. We talked about the international piece a bit earlier. 2 of our regions are, from an operating margin standpoint are absolutely accretive to the company. They’re at a point to where — they’ve got a good piece of the infrastructure they need. Europe is where we’re doing a lot of our investing now just because of the opportunity that we see. So — but over time, as we scale that business, we’ll start to get benefit as they drive up their operating margin. That just may be offset as we launch new regions. And obviously, we took a big step recently with a new member of our team is going to help lead our entrance into that region. From a new product standpoint, I think we’ll have to see kind of where we go.
But as we’ve done over the last 6, 8 years, as we broadened our product portfolio beyond just Coolers and Drinkware, those new products, as we’ve launched them, are even expanded within those core categories. They’ve all been at margins that are relatively in line with what we’ve done in the past. So we have — we don’t have a history of as we expand the product portfolio, the margins go down. So we believe we can continue to expand our operating margins from here, both through gross margin upside as well as leverage on our SG&A.
Operator: And this will conclude our question-and-answer session. And now I would like to turn the conference back over to Matt Reintjes for any closing remarks.
Matthew Reintjes: Thank you, operator and thanks all for joining the call this morning. We look forward to speaking with you during our Q2 call.
Operator: And this concludes our conference. Thank you very much for attending today’s presentation. You may now disconnect and have a great day.
