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#So mix will be ---+ will present some pressure for Victoria's in the first half of the year, as we went after the bralette and lower AURs sport bra business aggressively in the second half of 2016, so the mix will present some pressure in the first half of 2017, should not in the back half of 2017.
In terms of how we're going to grow sales at Victoria's Secret, it really gets back to the merchandise, most fundamentally, and then how we market and sell effectively both in stores and online.
And through some of the commentary previously, hopefully you know that our dominant emphasis is on merchandise itself.
And then, through compelling store design and compelling online presentation, good interactions with associates, sales experiences in stores, that's how we drive growth in the business.
Thanks.
<UNK>, I think, as you know with respect to PINK, we continue to be very bullish on that business.
And they've got a very strong loungewear and apparel business, and they've had that for a long time, and they've always had a very strong panty business, and they've also developed a very compelling high growth, high profit bra business within that brand.
So in terms of the growth opportunity, we see ---+ and I realize how this may come across, but we see several billions of growth and opportunity, to really double that business over the next four or five years, based on results that have been achieved over time, in our extrapolation mathematically around square footage in North America, let alone what we may be able to do internationally.
As you know, that starts with a clear brand identity and brand position, and then a very strong merchandise and marketing execution consistent with that position, and leveraging capabilities that you've heard us talk a lot about, including read and react, and chase, and short lead times, and all of that whole mindset.
And again, Denise and our team has such a strong understanding of that customer.
They're not perfect, they don't get it right every time, but their record is very, very good, and when they do have a miss, which is inevitable in these businesses because of those short lead times, and just their mindset of how they run that business, they adjust very quickly.
So I'm very optimistic about the growth potential for PINK over the next several years.
Hi, <UNK>.
So I think the best way to think about this, is obviously I mentioned, earlier, one of the benefits of having a short cycle business is that we get to leverage one of our best competencies, which is testing.
So we've had a relatively aggressive testing agenda taking place during the spring, and that will continue, and those reads will be most beneficial for the back half.
So more to come on that, as we get to the back half.
I think the other way of looking at it is, and with each delivery as we go through the spring season, there will be newness that is of a nature that's helping us evolve the brand as we move forward ---+ and I'm talking specifically about signature as per your question.
So we'll be in a read and react mode in the spring for the back half, and we'll also be in a read and react mode, for things that we put in the assortments that are coming anyway, or have come, and are coming anyway, that will lead to, how do we evolve this part of the business.
And so far, we're confident with what we're seeing, and I think we're moving in a pretty solid direction.
Yes.
I think, depending upon whether you measure share in units or dollars, you might get a little bit different answer, because we drove very strong unit growth in 2016.
We don't think about market share a lot, frankly because as the market leader and the dominant participant in the category, what we're looking to do is grow the market fundamentally.
But while there certainly are some emerging competitors, and some well-known names if you will, and then some smaller emerging players.
We're ---+ while we always had competition from the very beginning of the Victoria's Secret business, we think we're well-positioned, based on all the equities that the brand has, and the capabilities of the team and the organization to continue to be in a very good leadership position.
And again, we drove significant unit growth in 2016 in our categories.
Thanks.
Sure.
Thanks, <UNK>.
Short answer to your first part of your question is, I would expect stabilization of AURs in the back half of 2017, reflecting the commentary earlier about our aggressive push into bralettes and sport bras that we pursued in the fall of 2016, and those categories, in the bra business, do come at lower AURs.
We'll be anniversary that, and so I would expect that we would have a stabilization of AUR.
And that I'm trying to remember second part of your question.
Yes, over time, <UNK>, we would expect to have those margin rates be similar to the overall bra business.
Now I said over time, we were very aggressive in pricing in 2016, to drive a lot of unit growth and a younger customer to our business and that was intentional.
It was by design, and we were successful in doing that.
With that said, we will through fundamentally differentiation of merchandise in those categories, look to have margin rates over time, that are more similar to the overall bra business.
And we're not formulaic about that, and one should use a lot of judgment on that, and you got to about dollar growth versus rates and so on, and we try to do our best at that.
But maybe by example, if we thought about some other parts of our business over time ---+ for example, the PINK business, there was a time when PINK business had margin rates that were meaningful below Victoria's Secret lingerie margin rates.
That's no longer the case, and they did a great job through compelling merchandise, sourcing capability, speed, read, react, adjust to meaningful margin rates while still driving terrific growth in that business.
And we'll be looking to do the same in the sport bra and bralette categories.
I understand, and I want to be a little sensitive to how much we give out on the call.
But yes, there was some AUR pressure in the constructed bra business in 2016, and obviously, we'll be looking to moderate that, and get to flatter improved AURs in 2017, as the year progresses.
Yes, thank you.
I think we'll ---+ in both the bralette and sports bra categories, we'll begin to moderate the aggressiveness of our pricing as we work through 2017.
But that in part, is a function of how compelling the assortments are.
Thanks, <UNK>.
Yes, thanks <UNK>, for squeezing me in.
I'll maybe answer the question on the [VSBA], and then I'll throw it back to <UNK> on the compare on FX.
I think the patterns that we've seen in [VSBA ] very much mirror the patterns that we've seen in the beauty business in North America.
And as you know, under new leadership, we're starting to see some traction there, and we're excited about what's in front of us for the spring season.
And I would expect that to flow through, in a replication model to all of our international businesses, be they in the big store format, or the small store format.
So yes, I think pretty much the same pattern, that what you get away from home, is the same as you get at home.
<UNK>, do you want to comment on when we cycle the FX.
Absolutely.
<UNK>, currency start impacting our Company in total, and as you would expect largely or meaningfully in the international segment, really beginning in the fourth quarter of 2014.
And that effect continued through 2015, continued into 2016, but moderated in the back half of 2016.
And we don't expect that this point, a significant FX pressure in.
2017
<UNK>, do you want to take that or do want me.
Yes, I'd say, very difficult to tell really.
I don't think people can predict what's going to happen in the travel market.
But the extent of the change is relatively small to be honest with you, <UNK>.
What I would tell you, and I am somewhat biased, because I'm sitting here in China, is that China is absolutely fantastic.
And this is a great opportunity, and I'm thrilled with what we're doing here, and the opportunities both in the local market, and in the travel sector in China, will be just spectacular in the years to come.
Thank you.
