The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Meaghen Annett - TD Securities Equity Research - Analyst
: Can you just give a bit more color behind the change in the fiscal '23 gross margin guidance? And more specifically, how that change relates to
what you're seeing in terms of challenges in the supply chain, anything noteworthy in terms of shipping times, freight rates or even your use of
expedited freight? And so we did talk a bit about some of the transitory impacts on the gross margin here. So just wondering if you can quantify
the impact from expedited freights in fiscal '23, specifically?
Question: Meaghen Annett - TD Securities Equity Research - Analyst
: And just as a follow-up, I assume that, that impact from expedited freight would be incremental to last year. So if we're just thinking about how
this might roll off going forward, and what piece of that would you expect to stick going forward?
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Just with the success on the very strong demand that you're having in the U.S. and the strong productivity from the new boutiques that you're
building, is it changing your longer-term perspective on the U.S. market and just how big that could be for you and maybe the potential number
of boutiques that you might open there over the long run?
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay, that's very interesting, Brian. And is there any opportunity in Canada in certain markets where you also think you should upsize the boutiques
-- some of the boutiques?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: I just sort of -- lots of great ground you've covered so far. I just wanted to follow up on the gross margin expectation. And Todd, you gave some
commentary around sort of the cadence of pressure as the year unfolds or the rest of the year unfolds. And I'm just curious like how much visibility
do you have into those movements? And what are the biggest things that may cause gross margin to potentially come in better or worse than
expected?
Question: Stephen MacLeod - BMO Capital Markets Equity Research - Analyst
: And then I just wanted to ask about, Jennifer, you mentioned the intimates launch that seems like it's intertwined with the Michigan Avenue
flagship opening. And I know, Brian, you gave some color around the fact that these category extensions may not be needle movers. But I'm just
curious, is that something that you would expect to roll out over the -- across the entire network? Or do you sort of start at the flagship and then
go to eCommerce and then see how clients respond before offering it more broadly?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: I was just hoping you could do a little more handholding on the inventory growth. How much relates to the closures last year, expedited freight?
How it trends through the balance of the year and then sort of the current nature of the inventory? I noticed you mentioned it was sort of proven
sellers, but how much of that is new category extensions? Just trying to sort of unpack that for people that might be concerned about it.
| 
