...everyone. Sorry, we're a minute late, getting started here. Thank you for joining us. It's my pleasure to introduce Foot Locker and to moderate this fireside chat. Today, we have with us Mary Dillon, President and Chief Executive Officer and Director of Foot Locker. We also have Frank Bracken, EVP and Chief Commercial Officer, who was appointed to CCO, effective December 22nd, after being with Foot Locker for 12 years. And we have Mike Baughn, EVP and Chief Financial Officer, who joined Foot Locker in June 2023 from Kohl's. Mary, Frank, and Mike, thank you for joining us today. Thank you. Glad to be here. 35 minutes goes really quick. Yeah. We have a lot of questions. I thought first we could maybe start with the health of the consumer, if that's okay? Sure. Just because Foot Locker does seem to index at least to a lower income consumer, and that's where I feel like w e've seen maybe a little bit more, for lack of a technical term, squishiness. But you didn't, and so I wondered if you could help us reconcile what you are seeing from your consumer, why you think things trended a little bit better for Foot Locker? Sure. Absolutely. It's It's a consumer conference, so I'm not surprised that's where you want to start. So thank you, everybody, for being here. Yeah, I would say that the, y ou know, our customer is under pressure like everybody, right? In terms of, pressure on household income relative to rents, relative to inflation, relative to interest rates. You know, we do tend to skew to a younger, a younger, multi-ethnic customer, who's actually pretty early in their career, and by definition, lower income, right? So think high school students, sometimes college students, people, you know, putting themselves through school and just starting out. But what we've seen is that they're actually prioritizing this category. So for everybody, you know, in a consumer world, you've got certain discretionary categories you care more about than others. And so in our case, you know, we focus on folks who really care about this category, and so they're prioritizing their discretionary spend on footwear, we're seeing. And, you know, it's not something we're taking for granted, and we don't expect the customer to get necessarily better or worse through the year. But what they're doing is they're coming out at peak moments, like back- to- school, like holiday. And with the right products in front of them at the right time, they're willing to pay full price. So we came out of the second quarter with our global comps up 0.6% and our average unit retail up as well, so I think good evidence that that's working. As we think about the back half of the year, you know, we know there's some disruption, whether it's holiday timing or election, but we've tried to factor in and not expecting it to get necessarily worse or better for our customers. The other thing I'd say for us is that we've got a lot of levers in our control that we think are, you know, just starting to scale, whether it's our loyalty program, our store refreshes, the mobile app that we're launching, so we think those help stack us up. Last thing I'd say is that in our own proprietary survey work, we see that our customers are saying, "Yes, we're prioritizing this category, maybe over other discretionary categories." Again, we watch it closely. They're not immune, but we think we've got the right formula right now. And that does resonate, I guess, a lot with what we've heard from other retailers about innovation and newness, that consumers- Yeah. They are kind of rising to that occasion. If it's something new, they are paying full price for that, s o how would you characterize maybe the footwear industry right now with the level of newness, maybe on a scale of one to ten, and what we could expect to see from the industry over the next year? Yeah, I mean, maybe Frank and I will tag team this a little bit. Mm-hmm. He's got tons more experience in this industry than I have. But one of the pillars of our Lace Up Plan, we call Expand Sneaker Culture, and that's really about a belief that we can invite more people into the category through more types of styles, more brands, more use occasions, and that's working. At Foot Locker, we've got a diverse set of brands that we're selling, as you know, with, you know, a mixture of Nike and Jordan certainly is predominant, but also a lot of other brands between Adidas and New Balance and On and HOKA and ASICS and BROOKS. So there's a lot of territory and rich territory to play with. And what we're seeing, particularly in footwear, is that there's some innovative items that our guests are going after, and for different reasons and different occasions. Some are more looking to, specially for women, getting to the category for fashion purposes, right? And discovering, I know the ladies in the room here will agree with me, once you discover that you can wear sneakers for almost everything, you'll hardly ever go back to heels. But we also have people, like, interested in, you know, performance running, and there's innovation in that, as well as, of course, basketball. The lifestyle of basketball and the actual game of basketball. So, you know, across the board, there's places of strong innovation, places we'd like to see stronger, but we feel good about certainly what we have served up for our customers at holiday. If there's anything you want to add, I don't know if I hit that fully, but feel free. No, I, with the benefit of having seen a few up and down cycles in the industry, I would say this is the most complete and diversified I've ever seen our brand partner portfolio and the innovation that's coming from them. So she rattled off all the categories and opportunities, so I won't repeat that. But, you know, who would've thought that things like Crocs, $60 injection molded plastic, could become adopted by sneaker culture, and we'd sell millions of units at Foot Locker Inc. per year? But they've done that because they've made it culturally relevant, cool to the kids, great collaborations with people like Salehe Bembury, and partnering with Marvel Comics, and doing all these interesting things that connected to culture. You know, we're gonna go into a holiday season, and the Deckers group has done an incredible job with Hoka on the performance and running side, but also equally well with the UGG brand and having it adopted into sneaker culture by young consumers as the must-have item to wear back and forth from a basketball game when you're slipping in and out of your shoes, the Tasman sandal or slipper. So there's all these great case studies of brands that really stepped up their game and become part of sneaker culture that five, 10 years ago, have not been. Yeah. I'd like to know how much the pre-game footwear is comping up in your business, 'cause that's all I see now with my kids? Mm-hmm. They all wear their pre-game footwear, and then they- Yeah - change into their real footwear, like the- More- ... like the pros. More sneaker occasions. Yeah. Yes. Yeah, exactly. The tunnel walk is effective. The tunnel walk, yeah. Yeah. So you know, a question, of course, you know, that we get all the time is about your relationship with Nike, but I feel like what I'm hearing from what both you and Mary just said, is that the diversification is really working for you. W hat was maybe once not an over-reliance, but certainly a much bigger part of your portfolio is now still a big part, but not as much. How are you thinking about the balance of, you know, that Nike relationship with this other 60% of your portfolio? Right. Well, maybe I can step back and say: listen, Nike is an extremely important partner to us, right? And they always will be. And I feel very good about the state of our relationship. I mean, obviously, we benefit from a pivot more to wholesale. But in addition, we've been really partnering with Nike in a very strategic way around points of intersection that are about both of our brands, Foot Locker and Nike. So that's basketball, you know, sneaker culture, and kids. And so, you know, as we think about the rest of this year, we actually go back to growth with Nike starting in the fourth quarter, and we have a favorable launch calendar as well. But even leading up to that, we've been collaborating on multiyear growth plans that involve deep insights about our customer and what we can do incrementally to drive growth for Nike and Jordan Brands. And so, you know, they've been co-investing with us on things like THE CLINIC, which leverages our sponsorship of the NBA and their relationship with the NBA into programs that, you know, involve both of our brands together. Some of you may have seen or heard about our new reimagined stores. We have one on 34th Street that's an easy-to-access store here. But you can see in that store a great expression of basketball that we call Home Court, and it's multi-branded, but it's really been developed in conjunction with Nike and Jordan together. So, I see, you know, that as a very healthy place for us to be. But then, yeah, of course, you know, 40% of our business is made up of many other brands, that with each and every one of our brands, we approach the relationship from a, you know, a consumer insight-driven, multiyear growth approach. And how can we do things incrementally for their brands that other retailers can't, or they can't on their own? And I think it's a pretty healthy place for us to be. The last thing I'd say is that customers are voting, so people want choice in this category. It's very clear they're buying multiple brands and, as I said earlier, using them for lots of different occasions. And so I think it's a good place that we want to continue to operate from. And then, thinking that through, you know, a little bit more, obviously, HOKA and On have been, you know, very strong brands in the industry, and you are adding doors this year, I think, with kids for both brands. Does the customer profile differ greatly for those brands? And again, you know, how do you manage, I think, the different customer profiles that come along with carrying more brands? Yeah, I'll jump in on that one. So one of the beauties of that partnership is, you know, through their direct-to-consumer business, they have a certain consumer profile that they've been serving. We know that, all things equal, we have a younger, more multicultural, cultural and diverse consumer, and it's very geographically spread out throughout our North American and global footprint. So what we try and do is be additive or incremental, of course, to their own DTC footprint. So we have the data, the analytics that show that. So we have proxies from other brands and like sort of silhouettes, if you will, that help get us started, and then once we get some data from our online, our store sales, we can actually share that data back to them and prove that, and then also figure out ways to grow the business collectively. Look for geographies, look for consumer segments where we think that there's upside for both of us, and that's what helps fuel some of the door expansion, some of the allocation increases that we've been experiencing the last couple of years with those partners. If we could maybe talk a little bit about promotional activity, which I know has been waning, you know, since last year. There's been pockets of promotions, I think, in apparel in Europe and WSS, but for footwear, it sounds like it has pulled back quite a bit. How are you thinking about the current promotional environment, and how should we think about just as you transition customers away from the elevated promotions, how that has been going? I'll let you jump in, Mike. Yeah. So, I think as we look at the year, in the second quarter, in June and July, where we moved to a mid-single-digit comp level, we were very pleased that we were able to pull back promotions during that timeframe, and expand our merchandise margin. So expanding our merchandise margin at a rate that was higher than what we saw in May, and going back into Q1, then obviously a multi-quarter track record of being able to pull back our promotions, expand merch margin as we're moving the top line forward in the right direction. As we think through the back half of the year, in Q3 and Q4, we still expect to be able to expand our merchandise margins, really through the reduction of promotions. As we went through last year, we did have elevated inventory through last year, where we're operating with inventory down 10%, right now. And, you know, last year, when we were operating with that elevated inventory, we really surgically went after some markdowns to make sure that we got the inventory to the right levels to transition appropriately into 2024. We did call out. You know, while we are still showing meaningful margin improvements in Q3 and Q4, we did pull back our guidance modestly by about 30 basis points for the year. Within that, you called out EMEA, apparel and WSS. What we're seeing there is, it's not an indication that we're concerned about inventory. Really in EMEA, we are seeing the promotional lever as needed to help move through the apparel side of the business. And then in WSS, Mary spoke to this earlier, but you know, that consumer is looking for value, and we're able to show that consumer value through the promotional activity. I think important to note, because we called out those two areas, that means we feel very good about our North America margin trajectory and improvements outside of WSS. And even with those adjustments in Q3 and Q4, all of our banners are showing gross margin expansion, just less than what we originally forecasted. Right. I wondered if we could go back to a comment you made about providing the differentiation for your vendors that others maybe are not providing. Could you maybe, now that you've been in the role for a while, you have the Lace Up Plan, what are some of those attributes that you offer that's differentiated? And when it comes to your product, how much overlap is there now from what Foot Locker's selling in the market versus your peers or your competitive peers? Yeah, well, there's a lot to unpack there. I guess I would step back and say, let me start with the Lace Up Plan. You know, it's been two years since I've been the CEO, and I'm really proud of the progress that we've made in two years. It has not been easy. 2023 was a tough macro for us and tough from an industry inventory perspective, right? We worked through that. The strategies that we have outlined in the Lace Up Plan are still the same strategies, and they're working. You know what I mean? So it's about expanding sneaker culture, diversifying our set of brands that we offer. It's about what we call powering up the portfolio, and that is, you know, everything from right-sizing banners and number of stores to really improving, more importantly, refreshing and reimagining the store experience. Our digital, you know, becoming much stronger in terms of customer loyalty, deepening that relationship. So we haven't talked about our loyalty program yet, but that's just in the early innings, and then being an omni-channel retailer. So those are things that we think are important for us to be a really competitive, long-term, great omni-channel player. Within our portfolio, we've done, I think, a good job of pruning, but then differentiating. So Foot Locker and Kids Foot Locker are different from Champs, serving a different customer with a different assortment, different from WSS and atmos. So, you know, and relative to the broader marketplace, listen, I think probably the biggest thing to think about is that Foot Locker is the OG of sneaker culture and the OG of basketball culture, and we are playing offense right now. So like the last business I worked in, which is beauty, let's just say, you can't have complete different exclusivity of products in the marketplace. It just isn't practical, nor do you need to. What you need to have is an offense that you're running that is differentiated from everything from how people view your brand, to how they view the in-store experience, the online experience, loyalty, as well as the partnership that we have with our brands from a top-to-top level. So I feel like we're at our. It really starting to take off in terms of the plan, showing evidence of working, and differentiating us in the marketplace. You know, Foot Locker has the highest level of brand awareness in the industry. It's as a retailer, we have the highest level of social engagement, and we're kind of just getting started in some ways in this modern era, 'cause we're celebrating tomorrow, the 50th Anniversary of Foot Locker. And so in some ways, we're kind of reimagining and remodernizing the brand, and I think that's critical in differentiation. And then maybe let's talk about the loyalty program. Yeah ... since you mentioned it. We've been pretty excited about it, 'cause it seems like there was a lot of low-hanging fruit to- Yeah ... take advantage of, and so you relaunched it in June across the U.S., and you mentioned that 24% of sales in the quarter were through the loyalty program. I think probably peak loyalty programs, if I think about Ulta. Yeah ... and Bath & Body Works was here this morning, it sounds like 80+... Yeah, yeah ... is probably what more mature programs are generating in terms of sales. So how would you think- how are you measuring success of the loyalty program? What do you see the penetration? Yeah. I mean, we're super excited. We call it FLX. It was a program. We already had a loyalty program, but it was focused specifically on access to launch, which is important, but the smaller part of our business, right? So now we tested in Canada and then launched in North America, the new version of FLX Rewards, and it's basically, I'd say, a more tried-and-true way to drive loyalty and share a wallet, which is, you know, the more you spend, you get points for cash discounts, right? We're trying to keep it simple 'cause we know that works, and we're using the metrics that you would imagine, so level of enrollment, first-time redeemers, average order value relative to non-loyalty members, units per transaction. All of those metrics are moving exactly in the right direction, and we kind of are in the beginning stages of it. That, I think, is pretty exciting. We've said that, you know, by 2026, we expect 50% penetration, and beyond that, yes, I mean, 70% or higher, I would say for sure, could be the run rate. And then, of course, behind that goes with it the capability that we've built. I think we've got a world-class team who've done this at other places, so we know what we're doing, and really about, you know, data analytics, customer relationship marketing, over time, getting more and more personalized in the offers, and then working with our brand partners to leverage that data set as well. So I think there's. It's, it's one of the things that makes us feel confident about our ability to also pull back on level of promotion is that we're balancing it with this really great value-added program. And then, you mentioned the personalized marketing. I mean, then, Imagine the data collection from the loyalty, from FLX, is more than what you've had before. So how soon can you be more personalized in speaking about customer- Yeah, I mean, it's- -marketing? These are things that happen over time. Yeah. You know what I mean? In stages. Mm-hmm. So sometimes it's kind of mass personalization and ultimately trying to get down to one-on-one. So it'll, it'll play out over time. I don't know if there's anything else you want to add about- Yeah ... the mobile app I didn't mention, yeah. Yeah, no- Mm-hmm The only thing, y eah, I think that's a good add. Mm-hmm. In fourth quarter, we're launching our new mobile app of which loyalty or FLX is very integrated into that user experience, and we'll even condition the consumer further to wanna look for the point balance, offers, communications, and what's coming next. I think the other thing is, it is a journey, and we have a multi-year blueprint around technology, our consumer data platform, and some of the features and benefits of FLX that we're starting to test. But we think we'll get to scale in 2025 and 2026 in terms of member-gated events, more precise targeting and promotions, being able to go to our vendors with a cohort of people who have a passion or a franchise affinity, that we can then build product and marketing specifically for that consumer. So there's a lot of things that are on our roadmap that we're, like, in the early innings of this journey. Great. Great, and I would imagine just the last piece of it is what it means for your vendor relationships. Obviously, you already have very strong vendor relationships, the OG status the scale, everything, everything else. But I would imagine with the loyalty program and the data that you have, that can be leveraged as well. Mm-hmm. 100%. Yeah. One of the things that Mary brought to us and has brought a really unique point of view, is around data sharing and consumer insights to our brand partners, that candidly, we weren't doing very well, if at all, before. And so the ability to bring those commercial insights around the opportunity and what we're seeing with consumer behavior and where to take the business is very much appreciated by our partners. We're already seeing wins in terms of our business that came to fruition in Q2 and in the back half of the year, and I think that that's one of those things that momentum breeds momentum and we're starting to develop a reputation as a really good retail partner for that capability. Great. I wondered if we could maybe focus on Champs for a minute, because I know that's been a big initiative to reinvigorate and revamp that banner. So the comp for the quarter was down 3.9%, which was significantly improved from the down 13.4% in the first quarter, and there was positive footwear comps out of the banner as well. Could you maybe step back a little bit? And, Mary, can you tell us what you saw with Champs when you did decide to reevaluate? And, you know, how do you feel about the repositioning of Champs today? Yeah, I mean, I'll start, but I'm gonna tag-team this with Frank, who has even a lot more history, of course, than I do on this. But I would say I'm super proud about how rapidly we've been able to begin a period of stabilization for a banner like Champs. And so it's a banner that's had great history. What we've tried to do is say, "How can we differentiate it even more from Foot Locker, focus on a different consumer segment, work with our brand partners, then have a different assortment?" And it's beginning to work pretty rapidly. Yeah, I'll say, context matters here, because three, four years ago, Champs was a big, healthy, and profitable business. Mm-hmm. When we had the “Nike reset” in the business, we intentionally decided to distort some of that pain in terms of the allocation and product access to Champs in order to preserve and protect our flagship banners, Foot Locker and Kids Foot Locker. We've now had a bit of a full circle moment, where we're actually gonna be able to have access and allocation growth for Champs with Nike moving forward in Q4 as part of our broad return to growth with Nike. At the same time, importantly, we used this opportunity to sharpen our consumer positioning, the brand platform, and the in-store and online experience. I think it's actually made us a better brand, a better merchant, and ultimately, more differentiated from our competitors and also from Foot Locker. I think the brand partners now see those green shoots and actually materializing into sales and productivity and margin improvement, and so we're actually quite optimistic about the back half of the year, as well as 2025 and 2026 for Champs. That's great. Thank you for that. I know you had made some comments on the quarterly call about Back-to-School, but wondered if you could maybe give any color about what you are seeing from the Back-to-School season so far. Again, how much do you believe it's the changes that you've made within the business and execution versus last year, and just how the consumer is feeling about Back-to-School? Yeah, I mean, we exited the quarter with accelerating strength in comp and continued that into this quarter, into Back-to-School, which is obviously one of our most critical selling periods. And so what gives us a lot of encouragement is that this consumer is prioritizing this category, as I said, and coming out at peak periods, like Back-to-School. And because of the fact that we think we got the, a better assortment even than last year during this time period, people are going more to full price sales, right? And so all that together is good, plus now there's more in our control, right? So we talked about this, but whether it's this continued scaling of our loyalty program, our refreshes, which actually have a w e have a lot more of those in the second half than we even did in the first half, and every store we refresh lifts and is more productive than before. The mobile app that I mentioned, and then, you know, back to growth with Nike, allocations in the fourth quarter, those are all things that we feel like kind of really will help to continue to, I think, a strong Back-to-School into a strong holiday. Can we expect to see a similar launch calendar? I think always that Black Friday week, there is, some kind of launch around holidays. Will we see something similar this year? Yeah, we feel very good about the holiday sort of launch, launch calendar, how it's lining up in terms of the monthly flow as well as the content, the quality of the launches themselves, and so we're excited and think that's actually gonna be a bit of a tailwind for the business for us in the fourth quarter. Great. We wanted to make sure we asked you about the organizational changes that you announced during the quarter, with the changes to international, and then also your headquarters move to St. Petersburg. Just was curious about your thinking around those changes, and are there any concerns? I know historically, when there's been headquarters changes in the past, there's been, you know, maybe some people that don't go along with that. Any concerns around that? Yeah. Maybe we'll start with the headquarters first, because I think there's even more interest in that question. But, you know, what I would say is, first of all, this has been in the making for a while. This isn't, like, a decision we made overnight. Probably the most important thing to know is that we have a center of gravity already in St. Pete that's quite large, which I think a lot of people don't know that. So we've got our head of commercial, Frank, our CFO, our head of HR, a head merchant, a head of marketing, and all the North America banner leads, except for WSS, are already based in the St. Pete office. St. Pete was the home of Champs years ago. So this has been kind of a legacy, important center of gravity for us all along. We're gonna continue to maintain a limited presence, but a presence in New York, to stay connected to sneaker culture and all the stuff. But most importantly, we're not forcing relocation. Like, listen, the Lace Up Plan is working. We've got some momentum building. There's gonna be plenty of folks who we're gonna encourage to move to St. Pete if they want to. We're gonna figure out how to work with folks that... You know, we have a lot of key talent that we want to retain. So I think we've thought this through. You know, clearly, there's a benefit to having more people in the center of gravity for just pure collaboration purposes. There's financial benefit to, you know, smaller footprint here, bigger footprint there. But we feel like we've thought it through and feel good as we've rolled it out to our teams, that it's gonna be fine. Secondly, on the portfolio changes, I'd say just, you know, the theme that we've been focused on the last couple of years is simplification of the business, and how can we do everything in service of achieving our Lace Up Plan's strategic and financial goals over time, right? And so some of the marketplace changes are really just through a lens that we constantly use around a framework around, you know, where do we get the biggest bang for the buck in terms of growth, scale, profitability, places that, you know, the brand should exist? So, you know, we did some juggling, shutting some markets that we felt weren't gonna be productive for the long term, licensing some markets in Southeast Europe that we have a partner, very excited to do more. So I think we've got, you know, kind of a good balance right now in the portfolio. Doesn't mean we won't look at future things, but I think for right now, we've made the changes that we think make sense for now. Okay. That was my next question, just i n terms of licensing opportunity. There have been quite a few retailers that have looked toward international- Yeah ... and have done it exclusively licensed. You have been you know, actually operating internationally forever. Would that be part of the plan? Could you see that being full? Yeah, I mean, it is already. We have licensed markets already. We're moving to some more licensed markets. We're opening up India with a licensed partner that we're very excited about. So we see that as a good way for us to continue to grow our global footprint, but be the most, you know, the best stewards of our capital allocation and doing it in ways that we think we can do best. Anything else you guys would add on licensing that- No, I mean, I would say that, you know, the expansion in licensing in India with our first store opening next month coupled with the announcements made in Europe in the last quarter is supportive of, you know, we've got a $30 million licensing revenue target out in 2026. Not all of this will scale to help increase that, but we expect to be able to grow that at a double-digit percentage rate from 2026 beyond for a meaningful amount of time. Thank you. We've been asking five questions of each company who have presented today, and we'll do the same tomorrow. We've touched on some of these already, but just wanted to ask kind of in rapid-fire format. First question is the expectations for the consumer environment in the second half of 2024, what is your view relative to the first half about the consumer? Will they act the same, better, or worse? You know, I'd say that we're expecting similar. Similar pressures, but also, like I said, the levers and drivers that we have in our control are actually going to scale up and be even more in force in the second half, right? So refresh stores, loyalty, mobile app, but we don't expect the consumer health to change. Our second question is on the topic of costs, which we haven't talked as much about, and how you're viewing costs into 2025. I think there's been some more tailwinds this year with freights and maybe some on the material side of things, but how are you anticipating costs for materials, labor, maybe even tariffs, in 2025? So from a 2025 standpoint, I think we do expect some of the inflationary type expenses to continue to decelerate. You know, some of the other items were obviously that are a little bit more fluid, we're monitoring very closely. More broadly, as we think about our own cost structure and the things that that we can control, we're continuing to focus on our cost optimization program. And in 2025, while we expect SG&A dollars to increase, we expect it to be a return to SG&A leverage as a% of sales for us. Our third question is around consumer behavior. Again, we've heard quite a bit about the consumer looking for value. We wondered, in your opinion, and Mary, and everyone actually on the stage with all of your years of retail experience, do you think that this looking for value is a cyclical commentary, or do you think there's been a change in how the consumer shops and what they value? Yeah. I mean, listen, I've been in the consumer business now for forty years, a long time, across different industries. I think people are always looking. There's a price-value equation that matters always. You know what I mean? I think people are always looking for what can I get for the, you know, the money that I'm about to spend? And at times that there's more pressure on household income, spending, and budgets, I guess I would say, which is clearly the case right now, that's probably a little bit more the case. But again, I think for my experience is, like, if you focus on the business that you're in, and if it's a category they're prioritizing, like footwear for the people that we serve, they are showing up and still spending, but they're not gonna spend it every place else, right? So it kind of depends. You have to be in the right place with the right customer at the right time, but then bringing together innovation, products that are worth the price that you're paying, and, you know, in our case, other aspects of our marketing mix, like the loyalty program, all add to the price-value equation. So I think it's just for any business and consumer, you always have to be thinking about it, perhaps a bit elevated right now. Our fourth question is just about points of distribution in the U.S. next year. Will you have more or less points of distribution? Versus where we're operating at today we'd have very slightly less points of distribution. We have a small amount of Champs closures that'll still occur in the last part of the year that'll really complete the, you know, the rebase line of that banner. And then that coupled with, you know, both the slowdown of some of our new store growth with WSS, and the refocus that we've had to reprioritize a lot of our investment back into our existing store fleet through the refresh program, early into the Lace Up Plan, we expect to have slightly fewer distribution points next year. Can I just do a part A of that question with WSS? Yeah. Has that been a permanent shift in unit growth strategy, or is it just slowing for now, just given the softness in that business? From our standpoint, we still believe in the long-term growth and unit opportunity within that banner. It's really been a recognition of, you know, that customer has been under more pressure. And we have a lot of places where we think there's a higher and best use for capital right now that we can shift that investment into. But we expect, you know, as we go through the multiyear view, to get back to, you know, some significant growth with WSS units. And then, our last question is just on promotionality, which we've talked a good amount today, but just how you're viewing, promotions this holiday season versus last year, more or less or the same? Specifically for us, we do expect it to be less promotional than how we operated last year. You know, last year we were operating from a baseline of excess inventory that we knew we had to work through, and more elevated inventory across the industry. So embedded in our guidance is that we'll be less promotional year-over-year in the holiday. Okay, and with that, we'll conclude. Thank you so much. Thank you. Thank you.