“In addition, we expect our Channel Development segment to continue to be accretive to overall operating margin, with operating margin expanding to the high 40% to low 50% range from their favorable portfolio mix.”

In context

“ficiency both in and out of our stores, inclusive of approximately $1 billion in incremental high-return, growth-oriented investments balanced across our partners, stores, and customers across wages, new store equipment and enhancements, digital and product innovation, and supply chain modernization. We will also continue our focus and discipline in unlocking strategic efficiencies across our business, and have multiple work streams underway to support approximately $1 billion in incremental leverage opportunity. These efficiencies, paired with sales leverage and strategic pricing, support continued investment in our business even as we expand margin and grow earnings over the long term. We will provide greater detail around our efficiency work streams in our strategy meeting later today. In addition, we expect our Channel Development segment to continue to be accretive to overall operating margin, with operating margin expanding to the high 40% to low 50% range from their favorable portfolio mix. Moving on to capital allocation. Through a very disciplined approach to capital allocation, our return on invested capital in fiscal year 2023 approach 25%, a meaningful improvement from prior year. Equally important, we expect this upward trajectory to continue in fiscal year 2024. We expect our CapEx in fiscal year 2024 to be approximately $3 billion, with over 85% of our CapEx directly invested in our global store portfolio. We also expect to continue our stable dividend approach and remain committed to targeting an approximate 50% dividend payout ratio, displaying our confidence in our long-term growth and attracting a broad investor base, which benefits all stakeholders. As one of the highest dividend payers among high-growth companies, we are proud to have recently commemorated our”