“U.S. comp has normalized as anticipated in March and into Q3 with expected annual comp continuing to be in the guidance range of 7% to 9%.”

In context

“asis points from the prior year, primarily due to impairment charges against certain manufacturing assets and mix shift. Excluding the impairment, the segment's margin was nearly 40% for the quarter, and we continue to expect channel development margin to normalize in the mid-40s range towards the end of the year. Now moving on to our guidance for fiscal 2023. As Laxman discussed, we are reaffirming our guidance for the fiscal year, balancing our incredible momentum and optimism with the economic uncertainties we continue to face around the world. Let me provide some additional insights on our outlook. First, in the U.S., a meaningful part of the 12% comp in the quarter reflected a lap of Omicron in the earlier part of the quarter which was incorporated into our original guidance for Q2. U.S. comp has normalized as anticipated in March and into Q3 with expected annual comp continuing to be in the guidance range of 7% to 9%. Second, similar to comp, our Q2 North America margin also benefited from lapping a sizable amount of COVID pay in relation to Omicron accounting for 120 basis points of year-over-year expansion as well as Starbucks Rewards tier change impact of 60 basis points, which are not expected to recur in the balance of the year. Third, as I discussed earlier, we expect China's average weekly sales to sequentially grow in Q3 and Q4, but at a more moderate pace. Acknowledging the uncertain environment we expect China comp to improve in the back half of the year, driven in large part by the lap of mobility restrictions in Q3 of the prior year, coupled with the continued recovery, leading to low to mid-single-digit comp on a full year basis. Lastly, although China's Q2 margin was also stronger than ex”