And then over time, the optionality that, that gives us from a capital allocation is, I think, a difference making as you think about this as a combined company in the future.
Operator: Your next question is from Brook Roach of Goldman Sachs.
Brooke Roach: Good morning. Thank you very much for taking our question. I was hoping you could talk a bit more about the drivers of the positive handbag AUR that you saw in the quarter and your outlook for additional ticket and AUR increases as you move into FY ’25? How are you planning for AUR growth, in particular, pricing growth in North America against what we perceive to be a slightly more promotional competitive industry backdrop? Thank you.
Joanne Crevoiserat: Well, I’ll kick it off and then toss it to Todd to give you some real color on how that’s happening at Coach and continuing to happen year after year. We are driving handbag AUR growth, not only in Coach, Kate Spade delivering over two years of AUR growth as well. And it comes from really understanding our consumer, leveraging data across our value chain, all of the capabilities that we’ve built over the last few years and embedded in our decision-making in terms of our assortment size, our assortment architecture, cutting off the tail, our inventory management capabilities. All of those capabilities, our teams have embraced. Ways of working here are critically important to make sure that those capabilities end up in the hands of decision-makers and they drive action.
And I’d be remiss if I did talk about the fact that when we get to know our customers better, that gives our creative teams an opportunity to deliver that incredible creativity in a powerful way that resonates with our target consumers. So it’s that balance of magic and logic. And with that, I will pass it to Todd, and he can give you some examples of how that comes to life at Coach.
Todd Kahn: Thank you, Joanne. And I said this before, innovation creates desire. And we have created a desire not just in the product, but the way we present the product. Joanne has talked a lot about how we use our Tapestry platform to inform our understanding of our customer. And we do this with coupled with the idea of expressive luxury. So when we look at expressive luxury, we talk about the actual product. We talk about the place, what’s the environment we put it in. If you saw this year, we created so much innovation with the Tabby pop-ups globally, that created excitement. And so I’m very confident that the storytelling that we’ve really led with this purpose-led storytelling. We started last year with Lil Nas. We moved into connecting the product and the storytelling together with our Tabby campaign, which has drove incredible desire for Tabby.
So I feel very good about our continuing AUR both in North America and globally. We’ll see low to mid-single digits there. And we’re doing it on both sides of the equation. We’ve raised the floor over the last couple of years, our consumers are coming into the brand at higher price points. We’re extraordinarily focused on that 300 to 500 price range. And that has created even greater white space between us and European luxury. So for us, the desire of our product, the innovation we’re bringing, the storytelling around it, all under the umbrella of express of luxury is working and I believe will continue to work.
Brooke Roach: Thank you very much. I’ll pass it on.
Todd Kahn: Thank you.
Operator: Your next question is from Mark Altschwager of Baird.
Mark Altschwager: Good morning. Thanks for taking my question. Just first, with respect to Kate Spade, I think you said you saw more pressure in the value channel. Was AUR up at Kate adjusted for what may have been a mix shift to retail from outlet? And then with respect to the acceleration in product launches early in Q1 here. What’s your level of confidence that the acceleration in the revenue trend can be sustained? It sounds like there may be a bit of pull forward here to the extent you pushed up product releases? And then separately for Scott, just with freight, how much break recapture opportunity is left at this stage? Just if you could quantify that for us, it would be helpful. Thank you.
Joanne Crevoiserat: Yes. Thanks for your question, Mark. We did drive handbag AUR increases at Kate (ph) in North America. So it was not mix benefited and it’s based on deliberate strategies. We are not chasing every last dollar of top line in our business. We’re protecting brand health and we see a lot of runway ahead at Kate, both top line growth and in margin and AUR growth. They’re a little bit earlier on the journey, although now we’ve got two years of consistent AUR increases under our belt. So we feel good about our ability to continue to drive AUR increases based on brand positioning. And that’s the result of — our disciplined operations are leveraging our platform with data and analytics and applying that to the business, but also driving innovation.