All right. Welcome to the Global Consumer and Retail Conference. Please welcome Levi Strauss. Paul, over to you. Thank you. It's Paul Lejuez, Citigroup. Thanks, everybody, for joining. With me, CFO of Levi, Harmit Singh. Really appreciate you being here. I know that you might wanna start with just some quick opening remarks just to make sure we get that out of the way, and then I'll dive into some questions. Paul, thanks for having us. Yeah, my opening remarks will largely, you know, given the fact that we're in a quiet period, we're closing our first quarter of 2026, I'm not gonna get into current trends, latest financial outlook. My remarks are essentially gonna reflect what we talked about in Q4 2025 when we released results late in January. We will be reporting results early April. Overall, you know, we had a very strong year in 2025, where we're entering 2026 with great momentum. Our guidance reflects it. The company is transforming into more of a denim lifestyle company. You know, I'd say our past was denim bottoms, our future is more denim lifestyle. I'm happy to talk about the new, you know, what I call a very different addressable market going forward. Overall strategies are working. You know, our strategy is all about, first, being brand led. Super Bowl was a good example of the brand, you know, demonstrated the strength and momentum. Being DTC first, our DTC margins are growing, our DTC business is growing. Last but not the least, what we call powering the portfolio, which is all about, you know, growing international as well as really focused on two main brands, Levi's and Beyond Yoga. With that, I'd love to open it up for questions. Great. Great way to kick it off. I think we'll definitely touch on each of those topics. Maybe we'll start with some of the strategic changes that have happened. You've had a lot of strategic initiatives over the years. You referenced momentum in the business. Which of these strategic initiatives do you think has really been kind of like the key drivers of the, of the momentum? What's gonna keep it going as we look out to 2026? Sure. I think, if you go back, the fact that we narrowed our focus and exited low margin, low growth businesses, was a big unlock. I mean, we just announced the complete exit of Dockers. We have exited Denizen. We've exited a smaller footwear business. Really focused on accelerating Levi's and making this transformation to denim lifestyle in Levi's. I think that's number one. Number two has been the dramatic improvement in our product pipeline. You know, we clearly are leading trends. The denim category is, you know, is accelerating both in the U.S. and outside the U.S. This pivot to denim lifestyle has allowed us to grow our addressable market. You know, putting on my growth officer hat, you know, which I think should be the future of every CFO in the world because I think it really enables the CFO to really focus on profitable growth. What that has really done is a couple of things. If you take 25, the 7% growth, a third of the growth was the newer addressable markets. Things like getting into denim, bottoms for him, skirts and dresses for her. I'm wearing the Blue Tab, which is the, you know, 10% of the denim category, which we haven't played in. You know, I think, our market share in the premium denim category is 0.4%, and it's a huge category. as well as, what I call waist up, which is, you know, the shirt I'm wearing, our outerwear and sweaters we made a big push for. I think those are the opportunities that drive, you know, growth. I think what really helped to accelerate growth last year in 2025 was what I call the power or the magic of the "and." We grew DTC, and we grew wholesale. We grew U.S., we grew international. We grew tops, we grew bottoms. We grew women's and men's. There's no reason why that cannot sustain well into the future. It's not new areas that we're playing in, it's just that we're really narrowing the focus and growing that. Beyond Yoga we can talk about. Beyond Yoga was up in the mid-teens. We are in the early innings there. The category is growing, you know, high single digit, but our product is unique. We're differentiated. We only have 14 stores in the U.S. We're not present internationally. We just launched a men's assortment, you know. Men's have, you know, really gravitated to the performance tech. I think there's a lot more there. The most important piece of it is, it's not necessarily only growing the top line. As you said in the video recorded for our leaders, we just had a leadership summit, it is about growing the top line as well as growing the bottom line. I think our opportunity to drive higher flow through or convert, you know, a larger percentage of revenue into profitability, and that's really the focus of that will accelerate our operating margins. Can we talk a little bit more about Blue Tab? Sure. Just sort of, you know, what you've seen so far, this high-end denim collection that you've introduced. Yeah, how's it doing? What's the opportunity in that product longer term? Sure. Blue Tab was inspired by a focus on made in Japan. I mean, you know, made in Japan denim. It used to do really well in Asia. You know, it was sold in a couple of Asian countries, sold in China, and it was largely a men's bottoms, you know, product. Given that we were not present in the premium denim category, because it's something that we'd taken our eye off the ball maybe a couple of decades ago, our merchants and product designers got together and said, "It's a category that's growing. Levi's as a market leader has a clear opportunity to play." They introduced what I call more head to toe, both for him and her. What I'm wearing today, the blazer and the denim bottom is the Blue Tab product. Last year we decided we're gonna make this global. Tested it in I think 14 mainland stores in the U.S. We never had mainland stores in the U.S. It was largely an outlet business till about five years ago. A few stores in Europe, along with Asia, did really well. We think it's a clear opportunity for us. It's a large category growing well. It's what we call affordable luxury, right? The consumer has responded really well. This year we're introducing, you know, broader assortment. We're going to expand it to more doors, maybe select premium wholesale customers, and then I think in 2027 we'll have a full rollout. That's how we're thinking about it. You know, the price points are about 2.5, 2-2.5x Red Tab. Instead of a $120 product, you get more like a $220-$250 product. In Europe it's slightly more higher given just the premium nature of our business there. It elevates the brand. That's how we're thinking about it right now, and it's clearly expansion of TAM. You know, we just had, I said, we call our 250 leaders together, and a big piece of what Michelle and I talked about and the product people talked about was there's a long runway for growth for the brand. Getting into areas like premium denim are important, and then expansion of the addressable market on areas like tops, et cetera. How does that product skew, male versus female? I think it's more balanced today. It's, I mean, we didn't have a women's product. Today it is, it is men's and women's, is head to toe. You see it in our key stores, and it is working well. It's gonna get tighter. The only other piece in what we call affordable luxury, segment is our collaborations. You know, we've had successful collaborations with brands like Barbour, with sacai. Along with the Super Bowl, we actually launched the collaboration with Air Jordan, so the Jordan shoes, you know, Jordan jackets. I think those are the things that probably make well. We're selling out. You know, in the past our collaborations were really limited, so we didn't, you know, we didn't make a lot of money. We had the scarcity factor. Now we're trying to balance it so that we sell a lot more, especially with brands that, you know, are similar to ours in terms of momentum and awareness and stature. That's great. How do you think about the women's business in terms of long-term penetration? I think last year you ended up almost 40%. Uh-huh. Of the business was Mm-hmm. Was women's. How do you think Yeah. Where do you think that should be longer term? Yeah. If you think of the category, women's are growing faster than men's. It's under-penetrated for us. About a decade ago, you know, when I joined, a little over a decade ago, women's represented 20% of the business. It was probably less than $1 billion. Gross margins were in the 30s. Product was not resonating. The team leaned in. We've doubled the women's business, it's 40%, the gross margins are higher than the men's. This business, my view, when we get to $10 billion, will be double what it is today. It's growing. Last year I think it grew 11%. It's been growing high single, low double. The way we're making the pivot is a broader assortment for her, number one. Number two is if you think of our stores in the U.S., take our full price stores, we are now leading with women. In the past when you walked into the store, you know, you're greeted with the men's product. About a year and a half ago, we said let's just shift this. 75% of the shoppers are women. Why don't we start with the women's product? The question was, would it cannibalize men? Actually, the magic of the ad appeared again. It grew women's and didn't cannibalize men, which was important. Today 70% of our mainline stores in the U.S. lead with women's. If there are not two floors in the store, you have women and men's assortment on either side as you walk into the floor. Again, at the recent summit with leaders, I was like, "We have 3,000 plus stores if you take the franchise stores and ours, and we're just getting started here. Why don't we take this to market? We have tried this selectively in stores outside the U.S. Take the, our flagship store in Mexico. You walked in, you're greeted with a men's product. About six, eight months ago they've changed that to women's, and very similar result. I think that's one way of driving, you know, or accelerating the growth. To your question, my own view is that this can be at par with men, so 50/50 over time. That's not a bad product. That's not a bad result. It could be higher, but I think 50/50 will be the next base camp, you know, where this goes. We'll continue to see women Yeah Outperform. Yeah, I think so. You know, Michelle is leading the charge, you know, with that. Karyn Hillman is our Chief Product, and merchant is also a woman. She's driving that. I think it's clearly making a difference. Yeah. How do we think about, you know, women's growing faster than men's? How do we think about the drivers of sales for the company overall? Is a mid-single digit organic growth rate sort of the right ballpark to think about? Yeah. How do we think about that in terms of channel, geography? Sure. What are the drivers? No, it's a good question. I mean, if you think of. I mean, take last year as an example, right. The denim category globally grew 3%, around that. We were up 7%. A third of the growth was what I call expansion in our addressable market, so things I talked about. Which means if you back that out, we grew 5%, so we, you know, outpaced the category. Our view is we continue to outpace the category, especially if you're delivering, you know, the power of the And across all the pieces I talked about. Euromonitor's projection is that the denim category grows in the mid-single digit over the next couple of years, especially as the world casualizes. If you take premium denim, it probably grows a little faster than the normal denim category. Apparel is around the same pace. The way we think about it is, you know, and that's where we guided for 2026, is a mid-single-digit growth company. Now, where is that growth gonna come from geographically? I'd say the Americas, which includes the U.S., probably in the low-single-digit range. Europe in the mid-single-digit. Asia, which represents 20% of our business, with half the world's population, probably grows faster, say mid-to-high single digits. That's the geographic piece of it. I think if you think of men's and women's growing faster than men's, probably in the high-single-digit. Men's in and around the category. If you think of tops, our tops business is about a little over 20% of our business. You know, when I joined the company, we were selling seven bottoms to a top. I think we ended last year two bottoms to a top. There are countries like India, which is one top to one bottom, which is where we like to go. In quarter four, half our growth was tops because we lean into sweaters, we lean into outerwear, et cetera. I think, you know, probably stronger growth in tops, very similar to women's, high single-digit, low double-digit. You know, hopefully getting to one to one. That's how I think the, you know, you think about the categories, that's the way to kind of think about the business. DTC led, is that? Yeah, and if you think of channels, DTC, high single digit. Wholesale globally, low single digit. Yeah. You know, our DTC business is what I call a good trifecta. You know, we're growing same store sales. We've done it now for 15 consecutive quarters. We don't give the number. We did say last year was high single digit. We're opening 50, 60 stores. The third piece of the trifecta is growing our e-commerce business, which has been growing in the mid-teens and is very profitable today. Our e-commerce business is about, I think 10%, 11% of our business. It was half that, you know, five, seven years ago. We'd like to get the e-commerce business to about 15%. Those are the factors that give us confidence in driving a higher DTC business. There's some markets, the U.S. About a decade ago was primarily wholesale. We didn't have full price stores. It was largely an outlet business. E-commerce was very small. I think we closed last year with DTC now representing 45% of the business. Take Japan. A decade ago, Japan was 80% wholesale, very little retail. Today, DTC is 75%. Wholesale is 25%. You know, I must say right up front that DTC growth is not gonna come as a cost of wholesale, okay? For us, wholesale is critical, it's important. Growing wholesale is, you know, an important piece of how to grow, but it'll probably grow at a much slower pace than DTC. That's the, that's the top line picture. Yeah. Uh-huh. Let's maybe talk about margins. Sure. I think you've thrown out there a 15% number, several times in the past. Mm-hmm. Maybe talk about your confidence getting to that number? Right A nd how you build there between gross margin and SG&A. Sure. Our operating margins in 2023 were, you know, close to 9%, 2024 a little over 10%. Last year we closed, you know, in the mid-elevens. This year we're guiding close to 12%, right? Let's start with we'll get to, you know, close to 12%. Now, how do you get from 12%- 15%? You know, as I said earlier on, I think driving growth and driving profits at the same time is critical. One of the things that, you know, I talked about with our leaders two weeks ago was, you know, the desire to focus on flow-through, which is convert a high% of the revenue into profit dollars. You know, we've done a nice job growing the top line. Now we have to convert, you know, into a higher flow-through to get to that. The way I think about it is, you know, how do you get from 12- 15, I think is basically three elements. Gross margins, you know, have grown very nicely over the last couple of years. Our model can or should deliver 30- 40 basis points of gross margin acceleration every year. If you just focus on women's higher gross margin than men's, if you're a DTC higher gross margin than wholesale and international. That is 30- 40 basis points. I'm not building in pricing. I'm not even building in full price selling. We're making this real focus on driving higher full-price selling because our product is hitting home, hitting the mark, and we have an opportunity to drive more full-price selling. The second piece is mid-single-digit growth company should drive leverage on the SG&A. And we think that itself, you know, is probably in the same, if you think of just SG&A leverage, you know, should get us 150-200 basis points in operating margins. The other piece in this is we can talk distribution and network in a minute. Our distribution costs a little over 7%. We think there's 100 basis points of opportunity as you make this more omni-channel, inventory efficiency fulfill in that 150-200 basis points. If the model allows us, we can probably take our advertising expense, which runs at about 7% of revenue, up by 50 basis points. That's our real building block. Grow gross margin, drive SG&A leverage, and if the model allows us, spend a little bit more on advertising. Got it. Thank you. Maybe can we talk a little bit about the distribution centers? Sure. That's been, certainly, you know, a little bit of a drag on the P&L as you kinda remap the network. When do you expect that to be fully rolled out? When do you expect the full benefit? Just maybe what issues have come up? Sure R elative to kinda what you thought at the beginning? Yeah. As we thought about, you know, taking a $6 billion company to close to $10 billion, with DTC being more like 55% of the business, we looked at what is the infrastructure needs in the company. One was just have an ERP which is primed for a DTC business. Most retailers have moved to the new SAP, we are probably 60% of the journey there, so far it's gone really well because it's a big data unlock, right? Yeah, that's one piece of it. The other piece was our distribution network, which required more units to be processed, was not an omni-channel network. I mean, in the U.S., for example, we had four DCs. Two of them were 30 years old. They're largely manual. They needed an upgrade. The way to upgrade them was either you shut them down and like a remodel, just upgrade them, or we thought the better option was go with a third party who does this for a living. We run two, they run the third. We signed up with Marsh. That's the process we're going through. It's more automated. It's get to omni-channel. That's taken a little longer than we would've liked, and that's why we've had to. We've shut one DC. We had to keep the other open. Our thinking is the, you know, the ramp-up stabilizes sometime by the end of the first half, and sometime in the second half we shut the second DC. That's one piece of it. When the transition is complete, we're able to drive higher throughput at a lower cost, et cetera, et cetera. We did something similar in Europe. You know, in Europe, we built a D.C. because we're getting ready for capacity, and then GXO, which is, you know, the most equivalent in Europe, said, "Hey, why don't we operate it?" They cut us a check for the amount we spent, it took us about, I would say, six-12 months to get that ramped up. You've seen the European results in quarter four. It's actually a lot better now. My own view, the only example I give is we have a distribution center in the U.K. that was really servicing wholesale and stores, not servicing e-commerce. E-commerce was a third party. We brought it in-house, I think, in the end of first half of last year, and it has made a big difference. Costs are lower. We're fulfilling faster and a better inventory efficiency. The U.K. business has done really well. I think as long, y ou know, there is a bit of a transition pain right now in the U.S. in particular, but once it gets done, I think the payback is there for the making. To the question about when do you get from 7% lower, 7%- 6%, I think that takes a little time because it's just the efficiency, and that's why it's built into our 12%-15% plan. We're getting ready for a big company more, you know. If you think of our revenue growth last year of 7%, I would think 60% of that was really driven by more units. It's not entirely an AUR play. I'm a big believer you must be selling. You must sell more while we drive higher AURs. Our plan for this year, the mid-single digit, is more balanced 50/50. Selling more units is important. That's how you grow market share. That's where we get penetrated, things like tops which are on, you know, which have opportunity, et cetera. This denim lifestyle and the focus on the growing the addressable market will only happen if you sell more units. Got it. Can you talk about the price Yeah A ctions that you took. Sure L ast year actually as a result? I think it was driven by tariffs, right? Yeah. Now what do you do? Yeah F rom here, just given the uncertainty? Sure. We could dig into the tariff topic maybe a bit better. Yeah. No. We didn't price 100% for tariffs. You know, I would say probably a third of the tariff impact. The tariff impact was in 2026, about 150 basis points on gross margin, which if you do the numbers in dollars, is close to $100 million. Our pricing in 2026, unlike pricing that we did during the inflation, was we were not the first to price. We've wanted to see how the market and the consumer responds. We were more thoughtful on entry-level pricing. Because we have so much innovation, we leaned in a little bit more and took a little bit more pricing on the new stuff. And the pricing has been effectuated largely in Q1. So far the consumer has been resilient. We have momentum. We have new products. The consumer generally seems to be in a good spot. As we think about the year now with everything happening on tariffs, you know, we're just waiting and seeing, you know, how this unfolds. Our view is that we continue to give great price value to the consumer. We're still selling, you know, more units than we were, and so that means there's demand for the product. That's how we're thinking through it. We've taken a little bit of pricing in Asia and Latin America. We naturally do that to offset inflation. Very little pricing in Europe. Where we're leaning in in Europe is more selling more higher full price selling because the product resonates. You know, the brand's really strong, and so that's how we're trying to get higher AURs, you know, from our European business. Got it. Can you quantify the potential benefit on tariffs? Like, do you just look at kind of like last year and what was the drag and just assume that came back in? Yeah. I think we'll give more clarity when we report Q1 in April. Hopefully, you know, there's more clarity on tariffs. The way to think about it, our guidance on tariffs, our guidance in 2026 assumed incremental tariffs of about 20%. The administration right now is about 15, so there's a clear benefit. Assuming that stays at 15, there's a clear benefit. We're in the process of quantifying and summarizing and you know, scenario planning that piece. More to come. Then the question is, if there is an incremental benefit, what do you do with that, right? Do you roll back pricing? If the consumer is responding well, that's something, you know, we will evaluate. Do you drop that into profitability? We're working through a couple of scenarios there. We're also mindful of the potential of refunds, right? Every day is a new day on that. You know, the international court I think ruled that refunds have to be provided back to the companies I think late last week. Administration is responding. The worst-case scenario is we don't get refunds. The best-case scenario there's a refund and then, you know, what do we do with that? It's largely a one-time benefit if tariffs stay going forward. You can, you know, use the cash to either return back to the shareholders or do something different. When you say do something different, would that be within the operationally? Would you maybe increase marketing? Like how? Yeah. The good news for us, our guidance for 2026 assumes approximately a 4% capital spend, right? This is opening doors, spending on technology and AI. I don't think we need to spend more on capital. Should we accelerate some more store openings? Maybe. Again, it's not something that is critical. Maybe a little bit more marketing, I don't know. At the end of the day, we are committed to what we guided. We're committed to growing operating margins as we grow revenue. Time will tell what you do with that money. We've done a fairly good job, and we sold Dockers, and we returned, you know, all of the proceeds back to shareholders in the form of higher share repurchases. We're committed to making sure that if there's excess cash, you know, we manage that through discipline. You know, either investments or return that back to our shareholders to the extent we can. Yeah. You mentioned the sale of Dockers. You know, moved on from that. You also just recently referenced coming out of a food retailer, a grocery retailer. Uh-huh. Right. Mm-hmm can you talk about that? Yeah W ho was that, and is there anything else that you're thinking about in terms Yeah Of exiting some wholesale partnerships? You know, we don't name customers, and there's not one. There, you know, a few. You can count them in your fingertips. Basically, as we elevate the brand, the areas we're looking at, what I call pruning or rationalizing, are largely places where the brand is sold at a much discounted price point. I mean, off-price is a clear example. We don't make for off-price. It's largely used to flush product. The, you know, when things were not great for the brand years ago, we were selling at club, we were selling at grocery outlets, et cetera. We're using this opportunity to kind of rationalize it. I think the, i t's about 2% of growth on our U.S. wholesale business, which represents to about 25% of our total business, over half a point of growth. We're still growing the company. You know, U.S. is still going to grow. We're being prudent about it. Because we have other opportunities to grow wholesale, we under-penetrated in women's, we under-penetrated in tops, you know, beyond what even our direct-to-consumer business is. We think. Then we've, you know, talked about expanding distribution with, you know, a couple of customers in the U.S. We're working through, you know, we have different strategies for different customers where we say, "Okay, can we get more floor space? Can we expand the, you know, and demonstrate more of a denim head-to-toe look?" Take Macy's in Herald Square, they've expanded the footprint for men's. They were 4,500 sq ft. They've expanded the footprint for women's, again, 4,500 sq ft, giving more of a denim lifestyle look. With key customers, we are in conversations about, you know, now that we have the product, we have a new strategy on lifestyle, is there a way to bring that and execute that so the consumer or customer sees it when they walk into a store? We're working through some of those strategies with different customers. As we do this is, you know, if there are customers who we can, you know, rationalize or get out of, those are the things we're looking at. It's not a multi-year activity. It's just a year or two, and, you know, it will continue to drive growth. It'll continue to elevate the brand, and I think that's what we're focused on. Got it. You guys created a lot of buzz with the Beyoncé Mm-hmm Partnership Mm-hmm Just to move in a slightly different direction. Uh-huh. I think that partnership is over. Is there a chance that you could revisit that at some point? Is it on your radar screen that you have to anniversary that? Mm-hmm T his upcoming year? Is that gonna be a challenge? Yeah. You know, Beyoncé was great. You know, it started with her wanting to name a song, Levi's, and we got this call, and we said, "Yeah, we'd be more than happy, you know, for you to go forward." That led to the thinking of, okay, can this be a bigger partnership? Because she's someone who's been in the center of culture, you know, and has been a fan of the brand for years, and we have been a fan of hers for years. That led to the partnership. It also, the strategy was would this continue to allow us to grow our women's business faster and connect with the youth? That's what happened. It took the women's business to another level. The question was, you know, how do you continue with that momentum? It's less about lapping, but how do you continue the momentum? If, say, last year was where we played strongly on music, this year's music and sports. The Super Bowl campaign was the beginning of, you know, something that built on the momentum we have with Beyoncé. Now we've got the World Cup at the Levi's Stadium. A few games are being played there, so we kind of leveraged that. It's less about lapping it. It's about just going from strength to strength. We'll always, I mean, we play best when we're in the center of culture, which is about music, sports, art, you know. That's where, around the world in most of the art festival, music festivals, we play a big role. There's Coachella here. There's a couple of festivals in Europe, et cetera. The way we are thinking about it is that, you know, we've got a strong campaign. We've got strong influencers. The other thing we've changed is, so if you think about Super Bowl, the campaign that was launched at Super Bowl, it had influencers from around the world. It was not only U.S. influences, we had influences from around the world. That's because we're a global company. That makes a big difference. It's also locally relevant depending on which part of the world you are. That's really how we're thinking about it. The ROI is pretty good. I mean, and I look at that, and, you know, it's a good discussion I have with my CMO. That's why we're maintaining the spend at 7%. You know, we're not increasing the spend. As you grow revenue, it means incremental advertising dollars means you can, you know, spend on advertising and take it to the next level. Sounds great. Beyond Yoga, big growth there last quarter. Mm-hmm. Maybe you can talk about the drivers of that growth. Sure W hat you build into this year. Sure. Beyond Yoga, yeah, it was up 40% in quarter four. I think close the year in the mid-teens in terms of growth rate. The drivers of the growth in quarter four were a couple of things. We have a new team in place, largely folks who work for Athleta and took their brand from a couple of $100 million to over $1 billion. They know the business. Experienced folks. Nancy, who runs the business, ran Athleta. We've also brought on retail leaders. We've brought in a wholesale leader, et cetera. We built a team, and Q4 was the first real execution of that team in terms of product, in terms of branding. We also opened a couple of stores. The assortment is broader than pure women's. That's the business we bought. Now we've got, is more than leggings, is more lifestyle. you know, we've got fleece, we got outerwear, with a performance angle to it. We've got a men's assortment today that's doing really well. We have more stores. It's a combination of those factors. Our view is the business probably grows in the mid-teens in 2026, which is faster than the category, and, you know, category is growing probably mid to high single digit. At some stage when the model is proven, we will take this international. you know, if you ask, you know, we had all the leaders in, you know, 40% of them were international. They were clamoring for getting Beyond Yoga to the market, we said, no. Let us first prove it out. We are not making money yet in Beyond Yoga. I want to, you know, it probably gets close to break even this year, maybe early next year, and then we'll decide to take this international. We're thinking through that, but we're doing it in a very disciplined way. Excellent. Maybe just one more as we're coming up on time. Sure. Oil price is up a ton. Mm-hmm. You know, What's going on in your mind? What does it mean for your business? Yeah. How do you handle it? Yeah. We are watching this, we are watching it as well, you know, 'cause it's evolving by the minute. You know, if you think of oil and the impact to our business, product costs, you know, cotton, I mean, looking at the cotton futures earlier this morning, they're largely where they are. We have locked in product costs for the year, so there's no immediate impact on that. The other piece is the impact on the consumer, right? It's early days, we're gonna be watching that space. We have the product momentum, we have the execution momentum, so we'll be able to withstand that. The impact on currencies. I mean, those are the three things. You know, Ida and I went back and quickly looked at what happened, when you know, Russia and the Ukraine war started, and oil again you know, went through the roof. It had, you know, it had a minor impact on our business. While we're watching the space, we're, you know, right now we're being, I think, I think we'll be fine. We're also watching the sourcing, you know, because if Strait of Hormuz is kind of closed, the teams are working through different scenarios. We'll talk more about that when we report Q1 earnings. Given that we have a sourcing base that's, you know, that's spread through the world, I think we'll be able to leverage that if things, you know, tighten in one part of the world, et cetera. I think a diversified sourcing base, product cost largely already locked in, consumer in a good spot so far, I think will help us, you know, probably, you know, face this latest headwind in a better way than most others. It makes sense. Yeah. Harmit Singh, thank you. Thank you, Paul. Appreciate it. I appreciate it. Thanks everybody for joining us.