“Our outlook implies adjusted EBITDA margin leverage of approximately 30 basis points year-over-year.”

In context

“expect our gross margin to be up approximately 100 basis points year-over-year. We expect gross margin benefits from lower transportation costs, favorable FX rates, margin accretive mix and cost savings to offset costs related to retailer activity and space expansion. Turning now to adjusted EBITDA. Our outlook implies adjusted EBITDA growth of approximately 24% to 26% versus prior year, on top of the strong 56% growth we delivered in fiscal ‘23. With the combination of our top line momentum and strong marketing ROI, we’re planning to increase marketing and digital investment to approximately 22% to 24% of net sales in fiscal ‘24 as compared to 22% in fiscal ‘23. We’re investing from a position of strength and believe these increased marketing investments will continue to fuel our growth. Our outlook implies adjusted EBITDA margin leverage of approximately 30 basis points year-over-year. This margin expansion is supported by the combination of our strong sales growth and gross margin expansion. In summary, we’re pleased with our outstanding fiscal ‘23 results and remain optimistic about our long-term growth potential. As Tarang discussed, we see significant white space across cosmetics and skin care, both domestically and internationally. Our flywheel approach of investing in marketing to drive top line while expanding adjusted EBITDA margins gives me confidence in our ability to drive profitable growth. Finally, we believe our solid balance sheet, low . Operator: Thank you. The first question comes from Olivia Tong with Raymond James. Please go ahead. Olivia Tong: Great. Thanks, and good afternoon. And congrats on a pretty remarkable year. Mandy Fields: Thank you. Olivi”