Fiscal '25 Guidance
Q: How will you maintain growth amid global challenges?
A: Despite tough macro conditions, we delivered at the high end of our fiscal '24 guidance and remain on track to achieve our 15% operating margin at constant currency. " Our strategy is working, focusing on brand elevation, DTC growth, and regional expansion, particularly in Asia and Europe. "

North America Outlook
Q: Can you reach 15% margin target if wholesale stays weak?
A: We are on track to achieve our 15% constant currency operating margin this year, even with modest declines in North America wholesale. " North America wholesale now represents about 16% of our business, down from 25%, reducing its impact. " We expect DTC to continue leading growth with healthy comps across stores and digital. "

Average Unit Retail (AUR) Growth
Q: What's the outlook for AUR growth this year?
A: We are confident in continuing AUR growth through brand, channel, and geographic mix. " We expect AUR to grow at a mid-single-digit rate " , aided by cotton cost benefits and productivity improvements, reducing the need for like-for-like price increases. "

China and Asia Growth
Q: How is China performing, and what's the outlook?
A: China led our growth in Asia, with double-digit increases even on top of strong prior-year comparisons. " Despite consumer sentiment challenges, we expect China to continue leading company growth, with Asia overall projected to grow at a high single-digit rate. "

SG&A Leverage
Q: How will SG&A trend relative to revenue growth?
A: Our fiscal '25 guidance implies about 30 basis points of SG&A leverage on approximately 3% constant currency top-line growth. " After higher marketing expenses in Q1 due to the fashion show, SG&A growth will be below revenue growth for the rest of the year. "

Gross Margin Expansion
Q: What are the drivers of gross margin expansion?
A: We expect gross margin to expand by 50 to 100 basis points in fiscal '25 " , primarily due to lower cotton costs. " AUR growth, favorable channel and geographic mix, and reduced discounts will also contribute, offsetting some pressures from higher labor costs and inflation in non-cotton materials. "

DTC vs. Wholesale Growth
Q: How do you see DTC channel growth versus wholesale?
A: We expect DTC to lead growth with mid-single-digit increases across brick-and-mortar and digital channels. " North America wholesale is expected to decline but improve from a 10% drop to down low to mid-single digits, aligning with sell-out trends. " "

Europe Performance
Q: What's driving growth in Europe amid challenges?
A: Despite macro headwinds, Europe outperformed expectations due to strong brand positioning and momentum across channels. " DTC growth is strong, and wholesale is expected to grow at a low single-digit rate, despite some quarterly volatility due to shipment timing. "

Young Consumer Traction
Q: How are you attracting younger consumers?
A: Younger consumers are leading our new customer growth, with over 1 million new customers this quarter and 5.3 million for the fiscal year. " Targeted marketing in gaming and celebrity endorsements are resonating, and Net Promoter Scores among younger consumers are increasing. "

Outlet vs. Full-Price Stores
Q: How does growth compare between outlets and full-price stores?
A: Full-price stores have led growth in the past two years, but investments in outlet stores have narrowed the gap. " We expect this trend to continue, with better trends in outlets contributing without slowing full-price growth. "