“As a reminder, fiscal 2022 will be the first year within our three-year long-term economic model, which targets compounded annual top line growth in the mid-to-high single-digits with adjusted EBITDA growth outpacing net sales growth over that horizon.”

In context

“lative to our previous guidance, we do expect some incremental margin pressure from the combination of increased marketing spend, as well as costs associated with the space expansion we spoke about. Outside of these factors, our underlying assumptions are largely unchanged. We continue to expect gross margin to be down year-over-year as we face growing FX headwinds, and rising material and transportation costs. As we've discussed previously, we are pulling levers to help mitigate a portion of these gross margin impacts, including through select price increases and cost savings initiatives. Within SG&A, we continue to expect to leverage on our non-marketing SG&A spend both as we take a sharper look at our key areas of spend and as we start to scale the Keys Soulcare and W3LL PEOPLE brands. As a reminder, fiscal 2022 will be the first year within our three-year long-term economic model, which targets compounded annual top line growth in the mid-to-high single-digits with adjusted EBITDA growth outpacing net sales growth over that horizon. We're pleased to be targeting top line growth well above that range this year. Against the backdrop of global cost pressures and our desire to invest more in marketing, we still anticipate healthy adjusted EBITDA growth in fiscal 2022 and remain focused on expanding our adjusted EBITDA margins over the next three years. In summary, we're pleased with our outstanding Q1 results and are excited about the opportunities ahead in fiscal 2022. Our performance over the last 10 quarters both on an absolute basis and relative to the category demonstrates how our five strategic imperatives are driving results and gives me confidence for the future. With that, operator, you may open the call to questions. Operator: [Operator Instructions] The first question comes from Erinn Murphy with Piper Sandler”