“We do expect that there will be some residual liquidation that takes place in the third quarter.”

In context

“erent macro but the comments you guys just made for fiscal '24 and beyond. Any reflection on the five-year targets that you gave us a year ago, some of the growth rates and year-over-year margin opportunities as we get past this year relative to that plan? Thanks. Matthew Friend: Well, as it relates to inventory, Michael, the answer - you don't usually get a yes or no question, but the answer to your first question is yes. We do expect total inventory to improve as we go from the first quarter. So I highlighted North America because that's obviously the geography where we've seen this most significant increase. But we do expect to see it reduce. And then as it relates to - reduce on a dollar basis. And then as it relates to the margin impact, the second quarter will be the largest impact. We do expect that there will be some residual liquidation that takes place in the third quarter. And like I said just before, the total annual impact we see as a transitory 150 basis point cost to effectively liquidate the inventory that we want to liquidate and serve the marketplace with the fresh holiday product and then looking forward that we see. John Donahoe: And Mike, on the second part of your question, it's - I'm really glad you asked that because it gets to why we're so focused on the medium to long term because we do believe there is some very strong structural advantages that come into play. It's directly connecting with consumers, is critical to serve consumers going forward to have that direct connection, use our membership program to translate what has been a transactional relationship into a lifetime relationship of value, whether it's through directly or through our”