“I wouldn't expect a structural shift in SG&A spend.”

In context

“rey of Wells Fargo Securities. Chris Carey : I just wanted to come back to Steve's question on investment priorities. If I take your fiscal year outlook, you're clearly implying better margins in the back half of the year. But if I just walk through a gross margin bridge of what perhaps makes sense, it does seem to imply you'll need to see leverage on the SG&A line in the back half of the year to drive margin expansion potentially notable SG&A leverage despite sales decelerating. So again, if you could just help me frame overall SG&A and whether you think you'll be ending the year with appropriate levels of spending? Or if you expect investments to maybe grow progressively over the next 12 to 18 months as, for example, your capacity continues to improve, as Jon just said. Andre Schulten : I wouldn't expect a structural shift in SG&A spend. I think what you're seeing in the run rate is about what we expect to need in order to be sufficiently funded and the gross margin -- and most of the margin expansion will come from gross margin expansion as we ramp up productivity, pricing continues to flow through and that builds gross margin period-over-period. So that will be the bigger contributor. And we're not counting on any major reductions in SG&A beyond what productivity allows us to deliver again, at current sufficiency levels, and we are very carefully looking at what can we reinvest actually and still deliver within the range that we want to deliver. Operator: The next question comes from Kaumil Gajrawala of Credit Suisse. Kaumil Gajrawala : Good morning. Your commentary, I guess, just now on taking further pricing, it's ob”