“I think that, you know, we continue to believe that double-digit margins are something that are achievable.”

In context

“ransitory impact from our win-now actions, and we've got the newly implemented tariffs. And the impact that that's having on our business in fiscal year '26. Given the progress that we're making, the steady progress on exiting the first half with a healthy marketplace, we do expect the benefit from less inventory clearance to start to take shape in our margins in the second half of this year. But I would say that our outlook for margins for '26 overall have moderated. That's because of the new tariff rates and the impact that that has on our business this fiscal 2026 before all of the actions that we're taking are able to annualize as well as some of the headwinds that I referenced related to the timeline to return to profitable growth in Greater China and Converse. As I look longer term, I think that, you know, we continue to believe that double-digit margins are something that are achievable. And we look no further than our history, you know, different size of business, different mix of business, different shape of business, different geography mix, different product mix. And, you know, I think we're getting clear on what the path to getting back to double-digit margins looks like. And it starts with reigniting organic growth. It requires us to see significant improvement in the full-price mix of our business, which the win-now actions that we're putting into place are setting us on stronger footing to do. And then lastly, as we return to organic growth, we will drive operating leverage on our supply chain costs, on our retail overhead, and on our general operating overhead. And while the new tariffs are creating near-term pressure on our margins, we have outlined the actions”