Introduction

Our weekly Earnings Insights reports look at key commentary and qualitative insights from major US retailers and brand owners on their recent performance, in terms of revenues and comps, and the impact of the Covid-19 pandemic on fourth quarter 2021 performance (ended January 31, 2022, for most companies). Companies featured are those within our Coresight 100 coverage list, and we focus on those that reported in the week ended February 6, 2022. For most US retail companies covered in this series, the quarter under review will be the fourth quarter of fiscal 2021 (4Q21). In October 2021, US retail sales saw a double-digit year-over-year increase, fueled by strong growth in several sectors, and sales increased by 23.2% on a two-year basis. In November 2021, US retail sales continued to see double-digit growth, with sales increasing by a strong revised 14.7% year over year and revised 24.7% on a two-year basis. In December 2021, US retail sales increased by 13.3% year over year and 22.3% on a two-year basis. However, sales growth slowed sequentially in December 2021, possibly reflecting some holiday season shopping being pulled forward into November 2021. US retail traffic saw growth of 32.6% year over year in December 2021—lower than November’s growth, reflecting a trend towards the consolidation of shopping trips due to the increasing number of Covid-19 cases. We assess the recent performance of selected retailers below.

Apparel and Footwear Brand Owners 

Overall, apparel and footwear brand owners are enjoying solid sales growth. Columbia Sportswear, Deckers Outdoor Corporation, Ralph Lauren, Skechers and VF Corporation reported strong double-digit sales growth year over year, while Hanesbrands reported single-digit sales growth. Last week, Levi’s reported double-digit year-over-year sales growth.

	Columbia Sportswear Company (NasdaqGS: COLM) 4Q21
Commentary	Columbia Sportswear’s net sales in the fourth quarter increased by 23.0% year over year and by 18.3% on a two-year basis. EPS increased by 66.0% year over year. Gross margin expanded by 160 basis points (bps) year over year to 52.2%, from 50.6%  in the comparable period in 2020. Gross margin expansion was primarily driven by lower direct-to-consumer (DTC) promotional levels, strong retail sell-through performance resulting in higher wholesale product margins, and a favorable channel sales mix, partially offset by higher inbound freight costs and year-over-year changes in inventory provision activity. According to the company, Mountain Hardwear was its fastest-growing brand in 2021, with net year sales increasing by 33.0% year over year, followed by Columbia, which reported a sales increase of 28.0%. Growth was broad-based by channel, with its DTC business growing 33.0% and wholesale growing 18.0% year over year. In 2021, the company’s global DTC business represented 47.0% of net sales, including its e-commerce business, which represented 18.0% of total net sales. The company worked with its factory partners to successfully expand footwear capacity in 2022 across both its SOREL and Columbia footwear businesses. However, even with the additional footwear capacity, the company will not be able to fulfill all demand in the marketplace during the year. It is continuing to work with factory partners to further expand capacity for 2023 and beyond.
Outlook	The company expects net sales for full year 2022 to be in the range of $3.63–3.69 billion, representing net sales growth of 16.0%–18.0% year over year. The company expects diluted EPS of $5.50–$5.80, representing growth of 3.2%–8.8% from last year. On the technology front, the company is investing in digital and analytics capabilities to leverage consumer data, enhance the consumer experience across platforms, and drive efficiencies across the organization. It is also investing in enhanced supply chain capabilities to expand distribution capacity, improve inventory management, and adapt to shifts in the sales mix. Additionally, the company is investing in the expansion of its DTC store fleet. In North America, the company’s current plans call for opening around 15 new stores.

	Deckers Outdoor Corporation (NYSE: DECK) 3Q22
Commentary	Deckers reported net sales growth of 10.2% year over year or 26.8% on a two-year basis. EPS decreased by 6.3% year over year, but increased by 17.9% on a two-year basis. By brand, UGG’s sales increased by 7.9% year over year—the majority of its growth was driven by men’s and kids’ footwear, women’s slippers and fluffy shoes, as well as apparel and accessories; HOKA’s net sales increased by 30.3%; Teva’s net sales increased by 31.4% and Sanuk’s net sales decreased by 13.4%. Other brands, including Koolaburra, saw a decrease in net sales of 16.6%. By channel, wholesale net sales increased by 7.3% and DTC sales increased by 13.4% year over year. By geography, domestic net sales increased by 3.3% year over year and international net sales increased by 27.5%. The company stated that in its fiscal year-to-date, the most significant macro-level supply chain impact the company has seen is extended transit lead times and cost pressures related to container shortages, port congestion, and trucking scarcity—which have caused shipping delays and a higher usage of air freight.
Outlook	For the full year 2022, the company expects its net sales to be in the range of $3.03–3.06 billion, representing growth of 21.2%–22.4% year over year. Its gross margin is expected to be at or slightly below 51.5% and its diluted EPS in the range of $14.50–$15.15, representing growth of 7.4%–12.6% year over year. The company stated that it continues to experience certain disruptions, delays and capacity constraints related to Covid-19.
	Hanesbrands (NYSE: HBI) 4Q21
Commentary	Hanesbrands reported net sales growth of 4.0% year over year and 15.0% on a two-year basis, driven by strong consumer demand and point-of-sale (POS) trends in the US, Europe, the Americas and certain Asia markets, including China, which more than offset lingering pandemic-related headwinds in Australia and Japan. Its adjusted gross margin was 38.4%, decreasing by 195 bps compared to last year’s 40.3%—driven by increased expedite costs. The company obtained significant new retail space and decided to expedite additional product to ensure arrival in time for space sets at retail partners. By segment, innerwear sales increased by 3.0% year over year, excluding PPE. Management stated that innerwear growth was mainly driven by increasing unit volumes. Activewear sales grew 11.0% year over year, driven by strong POS trends across its activewear brands. Champion sales increased by 21.0%. In terms of geography, international sales increased by 4.0%. Inventory at the end of its fiscal year 2021 was $1.6 billion, an increase of 16.0% year over year, due to the combination of higher levels of in-transits and the strategic decision to invest in inventory in the quarter to capture increased consumer demand.
Outlook	For its first quarter of 2022, Hanesbrands expects net sales between $1.51 billion and $1.57 billion. At the midpoint, this represents around 2.0% growth year over year. Adjusted EPS is expected to be in the range of $0.24–$0.31. For the full year 2022, the company expects net sales of around $7.0–$7.15 billion. At the midpoint, this represents around 4.0% growth year over year. Adjusted EPS is expected to be in the range of $1.64–$1.81. The company raised its 2024 full-year potential revenue targets to around $8 billion compared to its prior goal of $7.4 billion. The company also made the decision to sell its US Sheer Hosiery business, focusing its portfolio on areas with the greatest potential for growth and returns.
	Ralph Lauren (NYSE: RL) 3Q22
Commentary	In the third quarter, Ralph Lauren’s revenue increased by 27.0% year over year. Comparable store sales increased by 34.0% and adjusted EPS increased by 76.0% on a reported basis. By geography, North America’s total revenues increased by 30.0% year over year and comparable store sales were up 38.0%, with a 40.0% increase in brick-and-mortar stores and a 32.0% increase in digital commerce. Europe’s revenues increased by 47.0% and comps grew 55.0%, with a 68.0% increase in brick-and-mortar stores and a 27.0% increase in digital commerce. In Asia, revenues grew 16.0% while comps increased by 14.0%, with 12.0% growth in brick-and-mortar stores and a 64.0% increase in digital commerce. The company continues to leverage the following strategies and highlighted some achievements during the quarter. Win Over a New Generation of Consumers: The company continued to fuel strong consumer engagement, through diverse content, and accelerate marketing investments. The company also continued expanding leadership into the metaverse. Energize Core Products and Accelerate Under-Developed Categories: The company delivered a compelling Fall assortment, successfully capturing consumer interest in post-pandemic dressing, blending casual comfort with elevated looks. Drive Targeted Expansion in Regions and Channels: The company delivered strong growth across every region in the quarter. Lead With Digital: Total Ralph Lauren digital ecosystem revenues grew more than 40%. Operate With Discipline to Fuel Growth: The company’s third-quarter adjusted operating margin expanded 260 bps year over year, to 15.9%, with continued gross margin expansion and operating expense leverage on stronger revenues, including increased marketing investments. Its adjusted gross margin was 66.0%, up 60 bps year over year, despite increased freight headwinds of around 150 bps. The company also made continued progress on environmental, social and governance issues—including launching its first product using Clarus, a first-to-market patented technology that uses high-performance recycled cotton, developed by the company’s partner, Natural Fiber Welding.
Outlook	For fiscal 2022, the company raised its outlook and now expects revenue growth of 39.0%–41.0% compared to its previous outlook of 34.0%–36.0%. The company now expects its operating margin to be around 13.0%, compared to the prior expectation of 12.0%–12.5%. The gross margin is expected to increase by 70–90 bps year over year, up from its prior outlook of 50–70 bps, representing 65.7%–65.9% growth—with stronger average unit retail (AUR) growth and a favorable product mix more than offsetting increased freight headwinds. For the fourth quarter of fiscal 2022, the company expects its revenues to increase by 17.0%–18.0%. The company continues to comment on the uncertain and evolving situation surrounding Covid-19 impacting the timing and path of recovery in its market—and the potential for further outbreaks or resurgences across various markets, alongside the potential global supply chain disruptions.
	Skechers U.S.A., Inc. (NYSE: SKX) 4Q21
Commentary	Fourth-quarter Skechers sales increased by 24.4%, caused by a 9.8% increase in domestic sales and a 34.0% increase in international sales. Domestic and international sales growth was driven by increases in both wholesale and DTC, with the largest improvement in international wholesale. Improvements in domestic wholesale were the result of higher unit sales volume and higher average selling prices. International wholesale increases were driven by growth of 123.5% in distributor sales, 61.3% in Europe and 8.6% in China. Gross margin was 48.6%, a decrease of 30 bps from last year’s 48.9%, primarily driven by higher freight costs. The company is seeing strong consumer demand for the Skechers brand. Consumers continue to stay outdoors for exercise, dining and many other activities—and seek out Skechers for comfort, innovation, quality and style at a reasonable price, according to the company. E-commerce achieved double-digit growth for the quarter. Its DTC average selling price per unit increased by 25.0%, reflecting of the company’s less promotional stance, higher-priced products and continued strong demand for innovative features in its comfort technology. The company continued to invest in its DTC capabilities, upgrading its POS systems in North America and the UK. It is currently completing updates in Japan, with Europe to follow. The rollout of new e-commerce sites also continued in the fourth quarter, with the launch of new platforms in Austria, Germany, India and the UK. More markets are planned for 2022, including several in Europe, according to the company. Additionally, the company is finalizing plans to enter the metaverse, creating an entirely new opportunity for the Skechers brand.
Outlook	For the first quarter of 2022, the company believes it will achieve sales of $1.68–1.73 billion, representing growth of 17.5%–20.9% year over year, and diluted EPS of $0.70–$0.75, representing 11.1%–19.0% year-over-year growth. For the full year 2022, the company expects sales of $7.0–7.2 billion, representing growth of 11.1%–14.3% year over year. Diluted EPS is expected to be between $2.70 and $2.90, representing growth of (38.7)%–(42.9)%. Port congestion eased in January 2022 and more containers reached the company’s distribution centers. However, the company believes supply chain challenges will remain through the first half of 2022 and ease in the latter half of the year.
	VF Corporation (NYSE: VFC) 3Q22
Commentary	The company’s revenue from continuing operations increased by 22.0% year over year and by 5.9% on a two-year basis. Adjusted EPS increased by 45.0% year over year and by 9.8% on a two-year basis. By segment, active’s revenue increased by 25.0% year over year, including an 8.0% increase in its brand Vans. Outdoor’s revenue increased by 23.0%, including a 28.0% increase in its brand The North Face. Work’s revenue increased by 6.0%, including a 4.0% increase in its Dickies brand. Within The North Face, the company continues to see broad-based growth across categories, with logowear, sportswear and snow sports all growing over 20.0% year over year. On-mountain products grew strongly, particularly in products offering key technologies. Off-mountain lifestyle products also showed solid ongoing momentum, with its brand SELF nearly growing over 60.0%.  Lifestyle footwear grew 30.0%. Vans increased by 8.0% year over year, representing modest growth compared to pre-pandemic levels. Apparel grew 29.0% year over year. The Supreme brand continues to see strong demand and sell-through, both online and in its stores. The brand delivered about $200 million in revenue in the quarter, despite closing doors globally at various stages due to pandemic surges. Timberland grew 11% year over year, led by a very strong sellout season. By geography, the Americas’ revenue increased by 18.0% year over year. International revenue increased by 19.0%. Within international, Europe revenue increased by 26.0% and Greater China revenue decreased by 6.0% year over year. By distribution channel, DTC revenue increased by 30.0% and digital revenue increased by 21.0%. VF’s total digital penetration was roughly 30.0% as compared to about 20.0% in same quarter of fiscal 2020, reflecting investments made in digital infrastructure and talent, enhanced merchandising capabilities and omnichannel services.
Outlook	The company expects its full-year fiscal 2022 revenue to be approximately $11.85 billion, reflecting growth of around 28.0% year over year, including an approximate $600 million contribution from Supreme. In the fourth quarter, the company expects revenue growth of 10.0% year over year. Full-year 2022 adjusted EPS guidance remains unchanged at around $3.20. The company expects the DTC ecosystem to deliver stronger margins, supported by the mix shift to digital, which the company believes will continue to be a structurally accretive profitability driver over the long term. Pandemic-related manufacturing capacity constraints have continued during the third quarter, although the situation has improved. Additionally, continued port congestion, equipment availability and other logistics challenges have contributed to ongoing product delays. VF is working with its suppliers to minimize disruption and is employing expedited freight as needed.

 

Beauty Brands and Retailers

	Estée Lauder (NYSE: EL) 2Q22
Commentary	Estée Lauder reported a 14.2% year-over-year increase in net sales and organic net sales grew 11.0%. Net sales increased in every region and product category, reflecting early stages of recovery in brick-and-mortar retail stores, primarily in Western markets and strength in online. Adjusted EPS increased by 15.0%. The company’s operating income increased by 22.0% year over year and its operating margin rose by 160 bps to 25.9%. By geography, organic net sales in the Americas increased by 19.0% year over year as holiday shoppers return to brick-and-mortar retail. Online also grew solidly in the Americas, with online representing more than one-third of sales in the region. In Europe, the Middle East and Africa (EMEA), organic net sales increased by 13% as growth was diverse and broad-based. In Asia Pacific, organic net sales increased by 5.0% as most of the markets in the region grew, led by Mainland China and Australia. By category, fragrance’s organic net sales grew 30.0% year over year with double-digit growth in every region and across all brands that sell fragrances. Hair care’s organic net sales rose 18.0%, reflecting increases from both Aveda and Bumble and bumble as brick-and-mortar salons and retail stores recover. Makeup’s organic net sales increased by 12.0%, reflecting the continued progression toward recovery in western markets and increased usage occasions. Skincare organic net sales grew 7.0% in every region, led by strong double-digit sales growth from Bobbi Brown, Clinique and La Mer.
Outlook	The company raised its sales guidance for the full year 2022. Organic net sales are forecasted to grow 10.0%–13.0%, up from the previous guidance of 9.0%–12.0%. Diluted EPS is expected to range between $7.43 and $7.58, compared to prior guidance of $7.23–$7.38. Inflation and transportation and procurement are expected to impact the company’s cost of goods in the second half. However, the benefit of pricing and cost-mitigation efforts are helping to offset some inflation impacts for the fiscal year, according to the company. For its third quarter, Estée Lauder projects 8.0%–10.0% organic net sales growth. The company stated that the net incremental sales from acquisitions, divestitures and brand closures are expected to add about 3 percentage points to reported growth.

CPG

	The Clorox Company (NYSE: CLX) 2Q22
Commentary	The company reported a net sales decline of 8.0% year over year but a 19.0% increase on a two-year stack, reflecting a 10-percentage-point decline in volume and two points of favorable price mix. Adjusted EPS declined by 72.0% year over year. Gross margin decreased by 1,240 bps to 33.0%, primarily driven by higher manufacturing and logistics costs and commodity costs. By segment, health and wellness’s net sales decreased by 21.0%, due to a decline of 18 percentage points in volume from lower shipments in cleaning and professional products, and three percentage points of unfavorable price mix. Household net sales increased by 3.0%, driven by five percentage points of favorable price mix and a two-percentage-point decline in volume from lower shipments in cat litter. Lifestyle net sales increases by 2.0%, driven by a one percentage point increase in volume and one percentage point of favorable price mix. International sales were flat due to eight percentage points of favorable price mix, a five-percentage-point decline in volume and three percentage points of unfavorable foreign exchange. Clorox stated that it has added Alaska Airlines to its out-of-home, multi-year partnerships. Under the terms of the alliance, Clorox will supply hand sanitizer and disinfecting wipes for most airports where the airline operates and all its lounges.
Outlook	Clorox raised its sales guidance for the full year 2022 and now expects a net sales decline of 1.0%–4.0%, increasing from its prior guidance of a 2.0%–6.0% decline. By the fourth quarter of fiscal 2022, the company expects sales growth to return to its long-term sales growth target of 3.0%–5.0%. For the full year 2022, the gross margin is expected to decline about 750 bps, primarily due to commodity and manufacturing and logistics costs, which were higher than previously anticipated—with the assumption of a return to gross margin expansion in the fourth quarter of fiscal 2022. Adjusted EPS is expected to be between $4.25 and $4.50, representing a decrease of 38%–41% year over year.
	Colgate-Palmolive Company (NYSE: CL) 4Q21
Commentary	In the fourth quarter, Colgate-Palmolive reported net sales growth of 2.0% and organic sales growth of 3.0% year over year, driven by pet nutrition and oral care segments. EPS increased by 3.0% on a base-business basis. The company’s gross profit margin was down 300 bps in the quarter to 58.1%, due to a 670-bps headwind from raw materials offsetting 120 bps pricing benefit and 250 bps of favorable productivity. By geography, North America’s organic net sales decreased by 1.5% year over year as North America lapped high-single-digit growth in the prior year, with liquid hand soap providing a headwind of more than 3 percentage point in the quarter. Latin America’s organic net sales increased by 6.0%; Brazil led growth, with strong pricing and premium innovation across whitening and natural products. Europe’s organic net sales decreased by 3.5%, lapping 4.5% growth in in the prior year, with a 2.5% foreign-exchange headwind. Asia Pacific’s organic net sales grew 1.5%, with volume and pricing increasing slightly but a modest negative impact from foreign exchange. The company stated that its digital transformation is paying off, seeing e-commerce market shares growing in key markets and strong e-commerce sales growth across all categories, including pet nutrition and within personal care, premium skin.
Outlook	Colgate-Palmolive expects organic net sales growth in 2022 to be within the company’s long-term target range of 3.0%–5.0%, driven by continued growth in oral care and pet nutrition segments. It expects gross profit margin expansion and low-to-mid-single-digit EPS growth. The company plans to streamline its supply chain to reduce structural costs through its 2022 Global Productivity Initiative. The program aims to reallocate resources toward the company’s strategic priorities and faster growth businesses, as well as drive efficiencies in its operations. The company expects to see benefits from the program in the second half of 2022, accelerating into 2023.

 

E-Commerce

	Amazon (NasdaqGS: AMZN) 4Q21
Commentary	Amazon reported 9.4% year-over-year revenue growth. On a two-year basis, the company registered revenue growth of 57.1%. EPS increased by 96.9% year over year. Operating income decreased by 49.3% year over year to $3.5 billion. The company stated that global supply chain disruptions and inflation remain strong headwinds. In Amazon’s retail-related segments, online stores’ sales (representing first-party online sales) declined by 1.0% year over year (although segment sales were up 1% at constant currency), physical stores sales increased by 17.0% and third-party seller services sales increased by 11.0%. Amazon Web Services grew sales 40% while the company’s advertising business increased sales by 32% to $9.7 billion. The company stated that Amazon had its biggest-ever Black Friday to Cyber Monday holiday shopping weekend, with apparel, beauty, home and toys among the top-selling categories. During the holiday season, third-party sellers, most of which are small- and medium-sized businesses, achieved record worldwide sales in Amazon’s store. Over 130,000 third-party sellers worldwide exceed $100,000 in sales on Amazon and, between Black Friday and Christmas, US-based third-party sellers sold an average of 11,500 products per minute. Furthermore, Amazon India’s month-long Great Indian Festival sales event was the biggest shopping celebration ever for sellers and brand partners on Amazon.in, with nearly 30,000 sellers exceeding $100,000 in sales. During the quarter, the first Starbucks Pickup with Amazon Go store opened in New York, which allows customers to order Starbucks beverages and food products through the Starbucks app and pick up from the store—in one location and without having to wait in line to pay.
Outlook	The company expects its revenue in the first quarter of fiscal 2022 to be in the range of $112.0–117.0 billion, representing 3.0%–8.0% year-over-year growth, and anticipating an unfavorable impact from foreign exchange rates of around 150 bps. Operating income is expected to be $3.0–6.0 billion, representing a year-over-year decline of 32.6%–66.3%. Starbucks and Amazon Go plan to open two more stores in 2022, with the next location planned for The New York Times Building in New York City.

Luxury

	Capri Holdings (NYSE: CPRI) 3Q22
Commentary	In its third quarter, Capri Holdings posted a revenue increase of 24.0% year over year and 2.4% on a two-year basis. Management attributed the growth to better-than-anticipated results at all three brands: Versace, Jimmy Choo and Michael Kors. Gross profit expanded by 23.6% year over year while gross margin growth was flat versus the same period last year. The company remarked that greater-than-expected supply chain costs offset the benefits reaped from the company's strategic initiatives. Operating margin was 20.6%, up from 12.8% in the prior year. By brand, Jimmy Choo performed strongest, with revenues up 47.0% year over year. Versace revenues increased by 29.0% year over year and Michael Kors grew 20.0%. By geography, management stated that the Americas’ performance exceeded expectations significantly, growing 26.0%—and, if not for constraints around inventory, growth may have been greater. In EMEA, revenues were up 35.0%, exceeding expectations despite restrictions in some countries; management called out domestic consumer demand as a growth driver, as international tourism has not yet recovered in the region. In Asia, revenues were up 3.0%. Revenue declined in Mainland China, due to store closures, travel restrictions and lockdowns in some cities, offsetting improving trends in Japan, Korea and Southeast Asia.
Outlook	For the full fiscal year 2022, the company raised sales and EPS guidance, now expecting sales of about $5.6 billion, an increase of 37.9% year over year from its prior guidance of $5.4 billion—reflecting the better-than-expected results in the third quarter. The company now expects an operating margin of 19.0%, an increase from the prior 18.0%, and diluted EPS of $6.00, versus the prior $5.30. For the fourth quarter, the company expects sales of around $1.4 billion, representing growth of 16.7% year over year and an operating margin of around 13.5%. Diluted EPS is expected to be around $0.80, representing growth of 166.1% year over year. The company also provided preliminary guidance for the fiscal year 2023, stating that it has considered the impact of the pandemic and ongoing supply chain challenges. It expects revenue growth of around 10.0% to $6.1 billion and an operating margin of about 19.0%, reflecting gross margin expansion of around 50 bps. It expects EPS to increase about 10.0% to $6.60.

Looking Forward

Overall, apparel and footwear brand owners experienced a strong quarter, with Columbia Sportswear, Deckers Outdoor Corporation, Ralph Lauren, Skechers and VF Corporation all reporting double-digit year-over-year sales growth, as well as Hanesbrands recording single-digit sales growth. Ralph Lauren raised its sales guidance and now expects strong double-digit sales growth in fiscal 2022; Columbia Sportswear, Deckers, Skechers and VF Corporation all expect sales to grow in double digits for fiscal 2022—last week Levi’s also reported similar guidance. Hanesbrands, meanwhile, expects single-digit sales growth in fiscal 2022. However, broad-based inflation pressure and supply chain constraints remain headwinds for these brand owners—particularly continued port congestion and other logistics challenges, and they are working with suppliers to minimize disruption and employing expedited freight as required. In beauty, Estée Lauder continues to enjoy a robust recovery, reporting double-digit year-over-year sales growth. The company witnessed strong growth across its fragrance, haircare and makeup categories, while skincare saw slow growth. The company raised sales guidance despite the potential for further spread of Omicron, supply chain challenges and increased inflationary pressures. CPG companies are seeing a mixed recovery, with Colgate-Palmolive reporting low-single-digit sales growth year over year, and Clorox reporting a high-single-digit year-over-year sales decline. Colgate-Palmolive expects organic net sales in 2022 to be within the company’s long-term target range of mid-single digits, whereas Clorox raised its full-year sales guidance and now expects a net sales decline of flat to low single digits from previous guidance of low to mid-single digits. When focusing on online retail-related metrics, Amazon continued to falter this quarter, reporting a low-single-digit sales decline in its online stores. Amazon Web Services and Amazon’s advertising business, while smaller than most of its retail-focused segments, continued to power total sales growth. In the next quarter, the company expects revenue growth of low to high single digits. Starbucks and Amazon Go plan to expand their store estates through opening of two more stores in 2022. Luxury retailer Capri Holdings continues its strong growth momentum, reporting double-digit year-over-year sales growth. For the full fiscal year 2022, the company raised sales and EPS guidance. For the fourth quarter, the company expects double-digit sales growth.