Thank you for standing by. This is the conference operator. Welcome to the lululemon athletica Inc. Third Quarter 2020 Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Howard Tubin, Vice President, Investor Relations for lululemon athletica. Please go ahead.

Thank you, and good afternoon. Welcome to lululemon's third quarter earnings conference call. Joining me today to talk about our results are Calvin McDonald, CEO; Celeste Burgoyne, President of Americas and Global Guest Innovation; Meghan Frank, CFO; and Alex Grieve, VP, Controller. Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future. These statements are based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business, including those we have disclosed in our most recent filings with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Any forward-looking statements we make on this call are based on assumptions as of today, and we expressly disclaim any obligation or undertaking to update or revise any of these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is included in our quarterly report on Form 10-Q and in today's earnings press release. In addition, the comparable sales and store productivity metrics given on today's call are on a constant dollar basis. The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website, www.lululemon.com. Before we begin the call, I'd like to remind our investors to visit our investor site where you'll find a summary of our key financial and operating statistics for the third quarter as well as our quarterly infographic. Today's call is scheduled for 1 hour. [Operator Instructions] And now, I'd like to turn the call over to Calvin.

Thank you, Howard. I am pleased to speak with you today about our performance in the third quarter, which exceeded our expectations. I'm incredibly proud of how our teams around the globe have continued to execute on the strategies that underpin our Power of Three growth plan as we navigate this unprecedented year. Joining me on the call today is Celeste Burgoyne, who was recently appointed to serve as our first President and will provide an update on our omni-guest experiences. In addition, Meghan Frank, who was recently promoted to Chief Financial Officer, will speak to our third quarter financials and provide some color on our outlook for the fourth quarter. And Alex Grieve, our VP Controller, will be available for Q&A. On today's call, I will provide an overview of our third quarter results and share some highlights with you from our Thanksgiving week. Then I'll give an update on our international business and product innovations, including MIRROR before turning the call over to Celeste and Meghan. Let me begin by providing an overview of our business performance in the third quarter. Total revenue increased 22% to $1.1 billion, driven by a combined comp increase of 18%. The revenue increased across our major regions with growth of 19% in North America and 45% in our international markets. In the store channel, productivity increased to 82% of last year's volume, better than our expectation of 75%. Our e-commerce business remained strong with comps of 93%. In addition, gross margin increased 100 basis points, and adjusted earnings per share increased 21% to $1.16 versus $0.96 last year, significantly ahead of our expectations. I'm also excited that in fiscal Q3, our share performance continued with our strongest quarterly market share gain in recent history. We grew our retailer market share of the…

Thank you, Calvin. I'm pleased to be on the call today to speak to our omni-guest experience pillar and to share some details on our third quarter performance, both in our store and our e-commerce channel. Over the past several years, we have shifted our organization to be focused on the omni-guest experience rather than focusing on specific channels. This served us very well in the COVID-19 environment. We know that guest behavior is dynamic, and our goal is to create opportunities in both the physical and the digital worlds that offer compelling experiences. We have leveraged our channels, put the guest at the center of all we do and have enhanced the ways we engage with our guests, whether via a transaction, a personal development session, community connection or on the MIRROR platform. Looking at our store channel, we are bullish on stores as physical retail remains an important part of the lululemon growth story. We continue to be focused on and invest in our in-store experience, our stores, our hubs and our local communities, creating a space for engagement among our guests, educators and ambassadors and allowing us to educate and story tell our product in a powerful way. In addition, we leverage our stores to facilitate our omni capabilities, including BOPIS and ship from store, and they continue to be an important vehicle for new guest acquisition. We remain on track to open 30 to 35 net new stores globally in 2020. In Q3, we had 97% of our stores open. Currently, we are still at approximately 97%, but we've seen a tightening of capacity constraints in several markets due to spikes in COVID-19 While these constraints can lead to lines outside stores during peak shopping times, I'm proud of how we have successfully implemented several strategies…

Thanks, Celeste. Let me first say how happy I am to be here as lululemon's newly appointed CFO. I'm excited to continue to partner with Calvin and our talented senior leadership team to execute on our Power of Three growth plans, and I look forward to keeping you up-to-date on our progress on future earnings calls. Let me now provide you with the details on our Q3 performance. And although we are not offering specific guidance, I will provide some color on our outlook for the remainder of the year. I will also discuss specifics on our balance sheet, including our cash position, liquidity and inventories. Please note that the adjusted Q3 financial metrics I will share include the operating results of MIRROR but exclude $8.5 million of acquisition-related costs and our associated tax effect. You can refer to our earnings release and Form 10-Q for more information and reconciliations to our GAAP metrics. For Q3, total net revenue increased 22% to $1.1 billion, above our expectations for a mid- to high single-digit increase. In our digital channel, we posted a 93% comp increase on top of a 30% increase last year. In our store channel, we had 97% of our stores open and saw productivity increase to 82% of last year's volume, better than our expectation of 75%. Square footage increased 13% versus last year, driven by the addition of 36 net new stores since Q3 of 2019. During the quarter, we opened 9 net new stores and completed -plan optimizations. In terms of our digital channel, e-comm contributed $478 million of top line or 43% of total revenue. We continue to see notable strength in traffic and conversion. Traffic was driven by channel shift, coupled with investments in digital marketing and conversion continues to benefit from gaps response…

Thanks, Meghan. Before we take your questions, I also wanted to mention that this quarter, we were pleased to welcome Courtney Gibson to our Board of Directors. Courtney is President of Loop Capital Markets, one of the largest privately held investment banking, brokerage and advisory firms headquartered in the United States. She brings a wealth of consumer and market insights to lululemon, and I look forward to her counsel. Let me close by reiterating that we are positioned well for the big volume days during the holiday season. Since the early days of COVID-19, our management team has been preparing for multiple possible scenarios, and we are ready to serve our guests where and when they want to connect with us. In our store channel, we will leverage our seasonal stores, virtual waitlist, mobile point-of-sale and appointment shopping to ease capacity constraints and continue to protect the safety of our store teams. And in e-commerce, our investments are paying off as our sites have demonstrated the ability to more than handle the anticipated spike in volume. In closing, I want to once again thank our teams around the world for continuing to be there for our guests and for one another. Their resilience, tenacity and creativity throughout 2020 have been a continued source of inspiration for me and our entire leadership team. This sets us up well for the coming months and quarters ahead. And with that, we'll be happy to take your questions. Operator?

[Operator Instructions] The first question comes from Mark Altschwager with Baird.

Congrats on the strong results here. Really nice to see the digital momentum. I was hoping you could talk about e-commerce capacity in Q4 and really your ability to sustain the type of growth rates you've been seeing given the much higher sales base in the fourth quarter. And then separately, I just wanted to touch on men's. I think the growth rate there has lagged the overall company year-to-date. I was hoping you could dig into the drivers there a bit more. Is it a function of just the work-from-home and lower demand for some of the core products like ABC or just any other high-level learnings there and how you see the men's business potentially reaccelerating from here?

Great. Thanks, Mark. It's Meghan. I'll take the e-comm capacity and then hand it over to Calvin for men's. So as we mentioned, we have been planning for multiple scenarios for Q4, and we feel well positioned to capture e-comm opportunity, depending on where the guest wants to shop with us. And we do see it moderating slightly from what we experienced in Q3 just in line with our overall guidance of mid- to high-teens growth relative to our 22% increase in Q3.

Great. And on men's, Mark, we're really happy with the progression we've seen through Q1, Q2 through to Q3. Moving from Q2 to Q3, the men's business accelerated almost at the same rate as women's. So although it's slightly behind our women's growth, it has, in fact, accelerated faster from the Q1 impact from COVID. And it's predominantly driven by he just wasn't shopping to the same degree out of the gate as she was. And that's in the market. We continue to put on share with our men's business. We've seen him respond well to strengthen our shorts, our sweats and our hoodies. And we have seen in Q3, our fixed waistband business getting much stronger. So I'm very pleased with the acceleration of the men's business, his response to the product and see no concern. And we remain committed to our power of doubling our men's business by '23.

That's great. And maybe, Calvin, just a quick bigger picture one. Just thinking ahead to next year, vaccine is on the way, but probably some time before we return to normal buying patterns. Could you just speak to how you're planning the business in terms of inventory flows, maybe pace of product introductions, anything on the marketing front as we head into spring of 2021.

Yes. In terms of -- as we look through multiple scenarios into next year, we talked earlier about our inventory position coming out of Q1 and where we are coming out of Q3. And we continue to feel very good about our position, up 23%, down from 41% in Q1. We have the product to satisfy the demand, and our product is predominantly core, less seasonal. So we're well positioned, and we've continued to lean in to make sure that we have the product to satisfy the demand. Our newness and innovation pipelines remain healthy, very strong, and we haven't pulled back on any of those. And that will continue to hit and flow. So we feel very good, and we're excited about the opportunity with new guests entering this category. The new guests that we've acquired through 2020 continue to build upon that and look the ways to amplify the brand. So again, not knowing the next few months, we feel very good about our position, the flow of product, our guest engagement, our ability to continue to fuel the business and growth forward.

That's great. Best of luck, and congrats, Meghan, on the new role.

Thank you.

The next question comes from Erinn Murphy with Piper Sandler.

I guess, first, just a clarification for Meghan. On the productivity in the fourth quarter stepping down to 70% in store, what is all being taken account to here? Is it just what you're seeing currently or just your anticipation of further capacity constraints to come? And then Calvin, as we just think about the product road map into next year, any update on footwear and any other kind of key product innovation, things we should be mindful of?

Thanks, Erinn. I'll start on productivity. So we did see average productivity in our stores in Q3 at 82%, which was higher than our expectation of 75%. But given we are seeing a resurgence with COVID-19 in some markets and we are also seeing stricter capacity constraints, government-mandated capacity constraints in several markets as we head into these peak weeks, we are expecting productivity overall for the quarter to be at approximately 70%, but reaching trends in line with Q3 during non-peak weeks. And it's really driven by just the volume of store sales in Q4. In a typical year, we see a 40% to 50% lift from Q3 to Q4, which given capacity constraints and traffic impact clearly limits our opportunity to service that traffic in our stores. .

And on our product pipeline, I'll first touch on footwear. So we anticipate the back half of next year introducing the -- our introduction into the category with selling in early '22. So we're excited to share our unique point of view and innovation in that category. And as it relates to all others, the pipeline is full, and we will continue through what we've expressed before of OTM, the sizing expansion. But as we continue to invest in our activity base, be it run, train or yoga, across the categories, there's a number of innovations that we'll introduce throughout the year that will continue to fuel growth in the business.

The next question comes from Lorraine Hutchinson with Bank of America.

I'd like to follow up on your comments around the air freight pressure in 3Q. Do you expect this to persist? And then can you also comment on the availability of air freight capacity just to make sure that you can land enough inventory to meet holiday demand and then into the early spring?

Sure, Lorraine. It's Meghan. So we have seen higher air freight market rates, but generally sufficient availability. We do expect that we'll continue to have some air freight rate pressure in Q4, and that is reflected in the guidance that we provided of a modest increase in Q4.

Have you found enough capacity to meet demand?

I'm sorry. I think I missed the second part of that question. Can you repeat that?

Sure. Have you been able to find enough capacity to meet demand for the holiday and then into the early spring launches?

Yes. Yes. We don't have any capacity limitations at this point.

The next question comes from Matt McClintock with Raymond James.

Congrats both Celeste and Meghan and even Courtney. I guess there is some good news in 2020. The question I have, actually, Calvin, and it's a little bit different angle than what Mark went with. But you -- your women's business still seems to be growing pretty exceptionally And there's a lot of people out there that think that you're ultimately going to need men's to grow fast at some point. But your women's business has proven that it can consistently grow faster than anyone's ever thought for years. So you actually put up a nice slide back at that Investor Day a couple of years ago. I'm talking about TAM, total addressable market. So how have your thoughts on the total addressable market changed or evolved now that we're in a COVID world or a post-COVID world? That's my first question.

Great. Thanks, Matt. I mean it's definitely with the inflections that we've seen this year through COVID with guests living a more active, healthy life and looking for more versatility in their apparel clothing, I think that all bodes well for the addressable market that we shared at the time. And what we shared at the time was we are early innings of our share of that addressable market. So I do think there are 2 forces. We will continue to gain share the addressable market, as we did in this quarter, and we shared achieving among our largest gains in our recent history. So that said, even with guests coming in and looking for versatility, we are winning at a greater rate than others. And I do believe that addressable market will only get larger. So I think both will continue to add fuel for our business. And we're happy with our men's business and the acceleration and the growth moving forward. We know that's a big opportunity for us as a percent of share of sales as well as just awareness. And as you've indicated, our women's business is far from -- at its potential. And what we saw this quarter was new guests coming in and our existing guests broadening out from some of the core categories as we've introduced newness, as we also innovate behind those. We introduced the cloud bra. Bras has been a big opportunity for us that we see with our female guests, and they responded incredibly well -- responded and the total category lifted. And we saw a really strong share growth. So I'm excited about the continual growth in women's both through new guests as well as migrating them into new categories, fueled by our innovation, fueled by versatility of apparel, the growth of TAM and our market share potential.

But just as a follow-up question. On MIRROR specifically, you meaningfully increased your guidance for MIRROR last quarter. I think 50%, $100 million to $150 million plus this year, and yet you kept the earnings the same, the accretion dilution, the same in terms of guidance. And you said that was going to go into marketing. So I'm just actually curious, can you give us an update in terms of the returns that you're seeing on the marketing dollars that you're actually putting to work at MIRROR?

Absolutely. We're really pleased with the holiday that MIRROR is having. We guided and raised it in the last earnings call, and we've reinforced the - in excess to that number. We're off to a very good holiday with MIRROR through November. There's lots of content and experiential innovation that's rolling out that we're announcing, for example, sweat dates, which is very unique and differentiated on the platform. We've only started rolling it out within the lululemon network. We have 18 stores today that we're learning and is becoming a great beacon and brand building opportunity and rolling it into other lululemon channels, with plans next year of going to hundreds of stores, continuing to build upon the platform. And there are some big weeks ahead. So I like our position. I like where we are in the quarter, and there is very solid momentum behind it. And we bet with the team on inventory numbers that allow us to have units. So we're in a good stock position with 2-week SLAs. So I'm encouraged. And there are some big weeks ahead with some uncertainty. But all indication is very positive with guest response and the momentum that's fueling and building behind MIRROR.

I actually look forward to using -- wearing my lululemon shoes that Erinn Murphy talked about with MIRROR.

The next question comes from Paul Lejuez with Citi.

Curious, you mentioned stores operating at around down 18%. I just want to make sure I understand if that number is being hurt more by weaker traffic or not being able to handle the traffic that is showing up, just given the smaller store size. And I think maybe related to that, you've got these pop-up stores. I just want to make sure I understand the accounting of those sales. Are those -- is that going to be included in comps if they are near to an existing store? And just how does that tie in to the spread that we see between comps and total sales as we look to 4Q?

So I would say in terms of store traffic, there are lower industry trends. And I think generally speaking, more traffic is shifting to e-comm. I think that said, we do have capacity constraints, and that's impacting also our ability to put traffic to our stores. As you mentioned, we are opening approximately 100 seasonal locations that will have an operation through Q4. Those do not show up in our comp sales. They will show up on our other channels. And as you mentioned, some of those are within markets and centers where we have existing locations so that we can capitalize on that traffic flow through Q4. .

The next question comes from Paul Trussell with Deutsche Bank.

My congratulations as well on the quarter and the new roles by Celeste, Meghan, Stacia and Courtney. My question is on e-commerce. You continue to experience, obviously, really strong growth in that channel with over 40% of sales this period. While that likely changes when the environment normalizes, just how has your view on investing in and rolling out stores changed, if at all? And are there areas of capabilities online where you need to invest further? And just lastly on that, how does a higher e-commerce mix kind of impact the P&L over the long term?

Great. Thanks, Paul. I'll talk to the -- our current strategic thinking through the balance of the channels and then hand it off to Meghan to talk about mix. We are obviously incredibly excited about the omni guest that has joined lululemon this year. Equally, the stores will remain a very important strategy and presence within how we service our guests, how we recruit and acquire new guests. There's been no dramatic change to our forward view of that. We always open a conservative number of new stores on an annual basis. They are small, highly productive and have the role of more than just transacting. They are building in the community, connecting to our guests and our ambassador community and really being a marketing driver, while at the same point, servicing and selling at high productivity. And we are early in the size of our store network. So we're going to continue to be opportunistic. I think there's going to be exciting opportunities for us next year with the state of retail. And our balance of cities, our balance of mall to non-mall is healthy, and our fleet remains healthy, and we will continue to take that conservative opportunistic view. And then with digital, we did a lot of innovation this year that the team will just build upon. You can go to the site today, you can interact with one of our incredible store educators live on demand through video. You can schedule a concierge, not to mention that traditional omni connectivity of buying online, picking up in store. So we're going to continue to invest in that digital connection of the ecosystem, both on how the guest transacts but also bring to our digital the human connection that is so unique within our store environment. So we're excited about our innovation and continue to feel the success in both channels, both which play a key critical role in our omni strategy. And Meghan, if you want to talk about mix?

Yes. So in terms of e-comm penetration impact on operating margin, we do, as you noted, see a higher operating margin in that channel. However, stores, which have historically been approximately 70% of our mix have seen decline in traffic and revenue. So that's contributed to some deleverage and impacted the overall profitability in the near term. As we look into the future, we do aim to manage the business on an omni basis and remain committed to our Power of Three growth plan, which includes operating margin slightly above revenue growth over the long term. And as we mentioned, we've been planning into multiple scenarios, and that channel penetration dynamic is an important piece of that.

You mentioned the loyalty program earlier. Can you just provide any additional details on spend per shopper enrolled in the program versus others? Any further color on rollout plans to additional cities and just any tweaks or changes you've made to the program of late?

Yes. Thanks, Matt. It's Celeste. I'll take that question. So obviously, as I mentioned, we're operating currently in 4 cities across North America with our membership program. And we are really pleased with not only the number of guest but also the engagement of guests. So we are not going to talk about any specifics on spend or any of that stuff, but really happy overall with their engagement. We did have a really great event in October. We had Gabby Bernstein, one of our global ambassadors who led an hour-long wellness and mental well-being session. We had over 500 members from across those 4 cities joined. So just an example of how we're really leveraging this program, and our guests are really enjoying participating and connecting with us across our entire ecosystem and really through the entire Sweatlife. We're really using these markets in these cities to continue to test and iterate. Obviously, a pivot to digital during this current environment has been a huge area of pivot. But one of the things that we're really excited about is also the opportunities that MIRROR can bring to our membership program. So we'll have more to share on that in the future. But definitely, the teams are hard at work ensuring that we really create and continue to iterate this program.

The next question comes from Matthew Boss with JPMorgan.

Congrats on another nice quarter. So Calvin, could you elaborate on comp trends that you've seen since the close of the third quarter. Black Friday, I think you said record weeks sounds great. Have you seen overall comps accelerate relative to high-teens performance in the third quarter? And has store performance to date exceeded the embedded 70% full quarter forecast?

Matt, it's Meghan. I'll take that. So we were pleased with the performance we saw during Thanksgiving week, and we did intentionally pull forward some seasonal activity, just given the capacity constraints as we moved further into the quarter. And we remain comfortable with the level of guidance we gave for Q4. That said, there is some uncertainty ahead of us, both with the virus and impact on store closures as well as store trends and guest behavior. So that's why our outlook for the balance of the quarter is a little lower than what we've seen to date. .

Okay. Great. And then just maybe for SG&A. On the accelerated e-commerce investments that I believe are tied to the higher digital penetration that you're seeing. Is this spending -- or is this basically incremental dollars relative to the 5-year plan laid out at your Analyst Day? Or should we think about this as more of a pull forward of some of the multiyear expenses and investments that were already preplanned within that 5-year plan?

I would think about it as more of a pull forward. And as I mentioned, we'll look -- we look to manage the business from an omni perspective. And as e-comm has accelerated, we've also somewhat pulled back on store openings, and so we'll look to balance our portfolio over the longer term as well.

The next question comes from Michael Binetti with Credit Suisse.

Let me add my congrats on a nice quarter. Maybe I'll just dovetail off Matt's question. Could you talk about how the SG&A in the fourth quarter, maybe what the book ends at the different range of the scenarios you planned? Or what were some of the -- what are some of the big swing factors between the high end and the low end of the scenarios you're thinking about in the quarter? And then I guess, looking out to next year, Calvin, how would you stratify -- I guess, with what you've learned this year and how your customers changed, how would you stratify what you think are the incremental growth drivers to lean into? And I guess, referencing Matt's question, as you think about investing coming off this, given that the growth next year pivots back to stores, that's where you have the majority of your fixed cost and leverage, is there a scenario where the SG&A could grow faster than revenues next year to get back on track to that 5-year plan?

So I'll take the first part of your question. So in terms of SG&A, we're not providing specific guidance for Q4. But as I mentioned, we do expect Q4 to deleverage slightly more than what we experienced in Q3. And we do -- we do plan the business prudently and manage costs effectively as we move through the fourth quarter. That really is driven by 2 pieces that deleverage. So the first would be due to this pressure on store traffic remaining below last year's levels and the impact that has on the P&L. And the second piece would be our investment in MIRROR. So as we mentioned, we see MIRROR as being modestly dilutive to earnings in 2020. The majority of that dilution will impact Q3 and Q4 given the seasonality of the business and the investment that we've been discussing in terms of marketing to capture new guests with the benefit really coming over the long term in that business.

And I'll just add, in terms of the multiple scenarios, we've looked at, there are a number of growth drivers that we anticipate will continue and accelerate from '20 into '21. As I mentioned, we're excited about the growth in women's, the growth coming from not just a strong bottoms business, but an acceleration in the additional adjacent categories. And those categories are ones in which the team has been working on, newness and innovation for the past few years in bras, in tops for example, in OTM. And next year, the innovation and the addition into those categories continues as we also continue to launch newness into our bottoms business. So I see a continual growth in the women's business. Men's is showing the pace in which it's reaccelerating, and I anticipate next year that it will be back at its momentum coming into '20 as we resume to some degree of normalcy. The international business incredibly strong. We've learned so much this year about the power of e-commerce. And I think that will continue to allow us to drive our omni initiatives across many markets into next year. And I'll just end with guest. We've acquired a number of exciting guests through COVID this year. One that came to us through e-commerce and haven't shopped our physical store because of a variety of constraints and the ability to migrate them into the store and have them become an omni guest. And then the increase in our omni guest portfolio within our existing a store-only guests became omni and shopped with us online and how we leverage those opportunities and continue to drive the share of spend with us going into next year. So multiple scenarios but all very positive on the back of product and the innovation that we're launching heading into next year.

The next question comes from Adrienne Yih with Barclays.

Congratulations on the performance and everybody on their promotions. Well-earned. Calvin, I guess my first question for you is, traditionally, showrooms and brand strength itself has been the driving force of advertising. Wondering as you become a global brand with a huge little footprint, what's your philosophy on investing more in demand creation? And then Meghan, for you, what have you learned about attachment rate of product purchases in combination with MIRROR sales? And what portion of the MIRROR customer file overlaps with that of lulu?

I believe we have an exciting opportunity with our brand to drive awareness to, therefore, drive consideration and help fuel guest acquisition and add to the growth potential that lululemon has. We talk a lot about the unaided awareness within men's and the opportunity to recruit more men to drive the awareness behind the brand and recruit. But that also exists for women. And it exists even in our more mature markets like the U.S. and Canada, not to mention international. So as you know, Nicky Neuberger joined us in the new role of Chief Brand Officer earlier this year, and she has already made an impact in assembling the talent of that team. And I'm excited how we're positioned heading into next year to drive into some of those initiatives and opportunities. We see a huge opportunity around earned media, and doing more with that as well as just the current initiatives we deploy to drive awareness and recruit. So you'll definitely see in '21 an increased effort and tactics of how we go within North America, but also internationally to tackle some of the opportunities we have with the brand and driving awareness and consideration.

And in terms of MIRROR and overlap with lululemon, I'd say we're still very early in our integration with 18 stores open and learning a lot there. But what we did see in diligence was approximately a 50% overlap. So we do believe that the brands are very compatible, and we're excited about what we can create in the future.

That's all the time we have for questions today. Thank you for joining the call, and have a nice day.