“The other thing that we're looking at is on the FX side. We source a majority of our products from China, and as we've seen favorability there, that could be a tailwind for us as well from a gross margin standpoint.”

In context

“in the base, there is the omicron that we're cycling in the base and so that suppressed some of our numbers last year and have really accelerated what you're seeing in tracked channels right now. And now that doesn't diminish our bullishness on our performance. I'll take you back to our guidance of 46% on the top end for the quarter really demonstrates how strongly we believe our business can perform right now. Rupesh Parikh: Okay. Great. And then, gross margins this year, you expect to expand around 200 basis points. What are the bigger opportunities do you see going forward to further expand margins in the coming years? Mandy Fields: Yes. So we talked a little bit about transportation cost easing and that – if those should sustain would be a tailwind for us as we head into fiscal '24. The other thing that we're looking at is on the FX side. We source a majority of our products from China, and as we've seen favorability there, that could be a tailwind for us as well from a gross margin standpoint. Rupesh Parikh: Great. Maybe one last question, as we look at -- look to the next fiscal year -- and I know you're not providing much guidance today, but is there anything you guys would caution us in terms of modeling for next year just from a comparison perspective? Tarang Amin: I mean it's hard for us to say right now because we're not providing FY '24 guidance. I think you've seen from this call a general bullishness on the business. Mandy said it well, she always takes a very balanced view and so I think we'll better be able to talk about that. But I don't see any big red flags at this moment in terms of the veins that we're particularly worried about, but we're always going to be balanced and I think, again, it's served us well in terms of taking in consideration all factors. Rupesh”