“That's something we are focused on and will continue to be in the second half of the year and for a long time to come.”

In context

“John Murphy (President & Chief Financial Officer): Yes. Thanks for the question. It's a topic we've discussed in a number of previous calls and is a big area of focus. It's implicit in the long-term algorithm, and we believe, and have demonstrated over the last few years, that we have the levers to continue to expand the implied margin. In recent years we've had a couple of primary drivers in our favor and some headwinds. Structural changes in our overall model, becoming more asset-light, have been one of the primary drivers. I would also argue that the quality of our top line, the resilience and adaptability of our supply chain, and our ongoing willingness to invest ahead of the curve make a potent combination that gives us confidence in the underlying margin agenda. That's something we are focused on and will continue to be in the second half of the year and for a long time to come. We've had a headwind on the foreign exchange front for a number of years, and thankfully this year it has turned into a tailwind, so we've had a little benefit in the quarter year-to-date and for the full year. For the quarters ahead, the primary area to judge us on is our ability to continue to drive a quality top line and then manage both our cost base and our investment base to sustain that over time. When that happens, the implied margin in our algorithm will come to fruition.”