“And if you combine that with longer lead times, the impact of the lost production is going to have a greater impact in North America in Q3.”

In context

“inventory, originally ordered for delivery beginning in mid-October. And our experience shows us, based on navigating through this pandemic over the last 18 months that it’s going to take several months to ramp back to full production. Now, on a positive note, a few factories have just had their reopening plans approved, like this week. And so, we’re optimistic about a phase reopening and ramp of production beginning in October. And as I said in the call -- earlier in the call, Indonesia is already operational, and they’re ramping back up to capacity. So, North America is coming into Q2 with elevated and transit inventory which means North America will have higher quantities of fall season product that it can sell in the second quarter. But holiday and spring production has been delayed. And if you combine that with longer lead times, the impact of the lost production is going to have a greater impact in North America in Q3. Conversely, Greater China, which has lower levels of in-transit inventory and shorter transit times because it’s closer to the factories, is going to experience the impact of the lost production earlier in Q2. Our teams are leveraging their experience in our operational playbook and taking actions to try to mitigate these impacts. And they’re doing things like maximizing our footwear production capacity in other countries, shifting apparel production out of Vietnam to other countries like Indonesia and China and others where viable, strategically leveraging airfreight. And then, we’re continuing to employ a seasonless approach to product to serve incredibly strong consumer demand, given our success that we’ve had selling at full price, even if the product reaches the market later than we”