WSM
#On the cadence of the comps, <UNK>, do you want to ---+
We usually don't comment on the cadence of the comps.
But I can comment, <UNK> can comment.
But on the promotional environment and what we saw that was different, at least from my perspective, from a financial perspective, if you look at many retailers, we are not alone in the situation.
If you look at Q1 versus Q2, it was much more broad-based.
We saw deceleration from Q1 to Q2.
It was much more across categories than we've seen before.
I think that's where you start to step back and say, this is something a little more than we've got the wrong product category in a particular brand.
For your second question, are you talking about operating margins or are you talking about gross margins.
Okay.
As far as gross margins, there are so many moving parts in there, that's why so hard for us to answer that.
Clearly, I am confident in our supply chain and inventory initiatives, both sourcing and comping the supply chain challenges we had last year.
So I'm confident in that piece of it and that piece moving forward.
Obviously it depends on the promotional environment.
It depends on the mix of revenues that we have, how much is global.
It depends on the level of revenue to determine where does occupancy play out.
So I can't give you a specific answer to that.
But I think the fact that we've seen Q4 to Q1 to Q2, we've seen improvement and we are seeing the success of our supply chain initiatives roll through, I feel really good about the gross margin.
From an op margin perspective, really that is a revenue play.
It really depends on ---+ obviously we said for Q3 we're going to be relatively in line with last year.
So it's a Q4 conversation, one of our biggest quarters, and where the revenue lands.
At the high end of our range we're flat to last year.
And it's a range, so we could be different level on the revenue and different level on the op margin relative to our guidance.
But it does assume that we've got continued improvement in our supply chain.
Thank you all for joining us and we look forward to catching up with you again next quarter.
