Laurent Vasilescu: Very clear. And as a follow-up question on the UGG business, Steve, I think you alluded to some timing shifts between 3Q and 4Q. Maybe for the audience, could you quantify that number? And then going back to Tom’s question about next year’s encore, Dave, Steve, Stefano, we are getting that question from investors like, oh, just 50% UGG growth for this year – for this quarter. It’s just – it’s going to be that much harder. I know you’re not prepared to guide for next year, but any indication on the order book for next fall would be very helpful. Thank you very much.
Steve Fasching: Yes, so I’ll start, Laurent. In terms of some of the shifts, what I mentioned in the prepared remarks is, yes, we are seeing where some of the over performance of Q3, because again, as you know, we haven’t guided orders, where we did see some earlier wholesale deliveries in Q3. That’s slightly impacting our Q4. In terms of our full year, we have raised our full year and that’s really a reflection of the strength that we’ve seen in Q3. Because we haven’t given quarterly guidance, I know everybody’s models may be a little bit different. And so it’s hard to say specifically kind of how you’re looking at it. The way we’ve looked at it is some of the business that we thought may happen in Q4 did come at us in Q3 as the sell-through was very strong.
And so we took advantage of that, and we were able to kind of shift some of that price. Generally speaking, what you’re seeing is the business has performed better than what we expected. We have flowed that through on our full year lift, and we’re seeing Q4 kind of as we’ve seen it with a little bit of timing issues [ph]. But overall, I think, the takeaway is incredible performance in Q3. We’ve flowed that through, we’ve lifted our full year, business is incredibly strong, and the demand for our brands is there.
Dave Powers: Yeah, and with regards to UGG coming up into fall of 2024, we’re confident. We see UGG now as a growth brand within the portfolio. Will it be double-digit, 15%, like we just experienced? We won’t be planning for that, but we still think there is growth to be added. I think it’s important to remind folks that UGG is in a very different position than it has been in the past. And I talked about this in the last call. We used to sell primarily Classics, Classic Short, Classic Tall, different colors, iterations, and a few slippers to go with that, and the distribution was pretty similar across the marketplace. UGG is much more diversified now, we’re selling boots, we’re selling slippers, we’re selling new hybrid innovations, and we’re starting to sell our version of sneakers.
And it’s a younger consumer. It’s a more diverse consumer. We have segmentation in the marketplace globally. We have a lot of untapped potential in the international markets, and we’re going to continue to play this through with the strength of our product innovation pipeline and the strength of our marketing teams to continue to drive this as a growth brand for years to come.
Laurent Vasilescu: Super helpful. Thank you very much for all the color. And best of luck, Dave.
Dave Powers: All right. Thanks, buddy.
Operator: Thank you. And your next question comes from the line of Jay Sole from UBS. Please go ahead.
Jay Sole: Great. Thank you so much, Dave. I wanted to follow-up on some of those comments you made about UGG, how much more diversified the product line is today. Can you give us a sense of, in the third quarter, what percentage of the business was boots, kind of the Classic too and sort of the derivatives of that versus sort of the newer stuff, Neumel and some of your versions of sneakers and some things that’s really kind of different over the last couple of years? And if you could sort of compare that to where that was a couple of years ago, that’d be helpful.
Dave Powers: Yes, I don’t have the exact specifics on that, but I will say the core Classics are really just a maintained business at this point, so it’s not like we’re purposely trying to shrink those. Those are still healthy. We are just managing that category and that product better in the marketplace. But the growth is coming from some of the newness, the Taz, the platform style, the Ultra Mini, and then, like I said, some of the sneaker versions and the hybrid winter programs. And as you notice, we launched UGGextreme, which is our first serious foray into more performance products. So this is a brand that has really broad shoulders. I have always said that. And I think now we’re seeing, once we get the right design DNA into these categories that are really innovative and distinct, there’s really nothing like this product in the marketplace.
We have a lot of runway and so we’re going to continue to innovate, continue to attack these categories with a focused assortment of UGG DNA products and connect with our consumers in a segmented way. And I think there is still a tremendous upside there. So lots to be confident with the UGG brand. I think this is an indication of the new leadership that Anne has brought to the team and the discipline in the marketplace, as well as our innovation pipeline. And we’re optimistic this is going to continue at a healthy pace going forward.
Jay Sole: Got it, understood. I’ll try to ask one a different way, hopefully this is okay, but it’s just so fascinating what you’ve accomplished with UGG. Can you maybe just tell us, if we just think about the business where it was five years ago, mainly boots, what was the total addressable market for that category? And sort of how would you size the total addressable market for UGG today, given the sneakers that you’re doing and all the different categories that have emerged?
Dave Powers: I’ll let Steve answer that real quick.
Steve Fasching: Yes Jay, it’s a good question. Clearly the addressable market, it has grown from where we were five years ago. I think another way to look at it, and I know what you’re trying to kind of get at is what’s the future growth opportunities for UGG? I think what we’ve seen, especially in this last year, is how UGG is being adopted for different use cases than it was five years ago. And so that total addressable market continues to increase as we are seeing greater adoption around our product. And so to Dave’s point about what we’re excited about, what we saw in Q3, is we’re seeing heritage products resonate with consumers, but iterations of that, where we’ve created newness in categories that consumers are adopting.
And so we’ve also talked about some of the demographic reach, and we’re seeing a younger demographic come into the brand with a strong excitement. You’ve really seen that come through in Q3. It’s what’s driving some of that DTC performance. And then we’re seeing it grow internationally. So as you recall, five years ago, we talked about how we were going to deliver the progress in North America and then export that success to the international market. And now what you’re seeing is those international markets growing at a faster rate, albeit smaller dollars, but at a faster rate on percentage terms than we’re seeing domestic. And that shows you how the consumer is embracing the UGG brand across the globe in different use cases. And through the last couple of years, what we’ve learned is through some of this casualization, the adoption of UGG for different use cases.
And we’re continuing to see that demand grow, and that’s what gives us excitement about where we can go with this brand.
