“We continue to expect our G&A growth to be outsized in fiscal year 2023.”

In context

“shape of margin, we continue to expect sequential margin improvement in both Q3 and Q4. We expect Q3 margin near the prior year level with Q4 expanding meaningfully over prior year as we lap the significant investments in wages and benefits. Note the quarterly margin shape in Q3 and Q4 is not expected to mirror the prior year. We also expect EPS to step up in the second half of the fiscal year, improving sequentially in Q3 and Q4. We expect year-over-year EPS growth in Q3 to be meaningfully lower than our fiscal year guidance range of 15% to 20% with Q4 year-over-year EPS growth slightly above the high end of our guidance range. Our guidance continues to include the impacts of significant investments related to our Reinvention Plan as well as inflationary pressures, which are moderating. We continue to expect our G&A growth to be outsized in fiscal year 2023. A large portion of the G&A growth will reflect critical technology investments, which we believe will fuel our Reinvention and business growth. Importantly, as we conclude the first half of the fiscal year, our global performance is closely tracking to our original expectations as the significant unexpected headwinds in China were offset by strong performance in the U. S. and the rest of the world. While we continue to navigate our path to recovery in China, coupled with the heightened level of macro uncertainty around the world, we are confident that the Reinvention investments we are making in our partners, stores and customers will continue to guide our growth, delivering on our original fiscal 2023 outlook. Lastly, despite the current interest rate environment, our balance sheet remai”