“Given the quarterly shape of the fiscal 2022 baseline, we expect China comp to be negative in the first quarter, followed by outsized comp in the balance of the year.”

In context

“ew. The segment's operating margin was 50.6% in Q4, down 170 basis points from the prior year, mainly driven by business mix shift. Let's now move on to our fiscal 2023 outlook, which reflects the beginning of a new era of growth. Our guidance remains consistent with what we shared at our Investor Day in September. So today, I will reaffirm and refine the guidance specific to fiscal year 2023. And we'll also introduce an outlook on a few below-the-line metrics that were not part of our Investor Day guidance. Starting with the first building block of our growth, comparable store sales growth. We expect fiscal 2023 U.S. comparable sales growth to grow in the range of 7% to 9%. For China, we're expecting outsized comp in fiscal year 2023 as we lap the severity of the lockdowns in the market. Given the quarterly shape of the fiscal 2022 baseline, we expect China comp to be negative in the first quarter, followed by outsized comp in the balance of the year. Our fiscal 2023 global comp growth is expected to be near the high end of our long-term target range of 7% to 9%, consistent with what I shared at Investor Day. And global comp in Q1, reflecting negative comp in China, is expected to be at the low end of the annual guidance range, then expanding in subsequent quarters. Moving on to the second building block, new store growth. We expect our U.S. store count to grow by approximately 3% in fiscal year 2023. In China, we will continue to rapidly expand our store footprint, with approximately 13% growth expected in fiscal year 2023. We expect our global store growth to reach approximately 7%, with over 75% of the growth coming from outside of the U.S. as we continue to diversify our portfolio globally. With this powerful combination of global”