“We've been talking about 200 basis points of impact from ocean freight cumulatively over the past two years... Our rates for this year locked. And so we expect to continue to see up -- to see that the recovery of that in Q3 and Q4.”

In context

“nal marketplace like we have. And so there's definitely a lot of inventory in the market across brands, but we feel great about where we are. And newness and innovation is what will enable us to earn open to buy in our partners and will enable us to re-accelerate the top line. Operator: Our last question comes from the line of Paul Lejuez from Citi. Please go ahead, your line is open. Paul Lejuez: Hey, thanks guys. I'm curious if you could talk about and quantify the cumulative freight drag that you've seen over the past two years and the timing of how you will recapture that freight drag in F'24 versus F'25 just based on your recent freight contracts? And what are the offsets as we think about potential puts and takes on the gross margin line '24, '25? Thanks. Matthew Friend: Well, sure. We've been talking about 200 basis points of impact from ocean freight cumulatively over the past two years. And we started to see those transitory benefits begin to recapture here in the second quarter. Some of our upside in the quarter versus our guidance was it came a little bit earlier than we had anticipated. Our rates for this year locked. And so we expect to continue to see up -- to see that the recovery of that in Q3 and Q4. One of the other transitory impacts that we're watching closely was markdowns. And right now, we're only planning for a very modest amount of markdown recovery relative to the markdowns that we incurred in the prior year. And that's just given where the marketplace is. We've decided to take a more prudent approach to our margin guidance for the balance of the year given some of the uncertainties that are out there. So, you know, when we look to the balance of this year, we're encouraged by the second half expansion being higher than the first half expansion. And one of the other things t”