Your next question comes from the line of Chris Svezia from Wedbush. Your line is open.Thank you, everyone, for taking my questions. Congratulations. I guess just first, Western Europe. I'm
Nike Air Max 2017 Damen just curious beyond the World Cup, what's your ability to maintain some of the momentum you're seeing, whether it's in footwear or apparel, maybe of any color by region, either digital or TTC?
Nike Air Max Tavas Womens Just sort of what you're seeing in that market that might give you some confidence that that momentum can continue once you get through the World Cup event.I think the underlying health of the business for Nike and Europe is actually quite strong beyond what we're seeing in the World Cup. And again, I think that's both in footwear and apparel. Similarly to the North America, we have a clean marketplace seeing growing
Nike Air Presto Womens full price sales. We're outpacing the marketplace overall. It's the same dynamics; new product innovation is resonating, especially in some of the key styles we mentioned,
Nike Air Max 90 Homme like the AirMax franchise, the AirMax 270, the VaporMax.
Nike Air Max 90 Mujer Negras We're editing our product mix. We're creating more choice but focusing on key products and that's really helping to drive our strength in the marketplace. I think the focus, too, on the key cities
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Nike Internationalist Damen and again, beyond the World Cup, we expect that to continue.
And Andy, for you -- you outperformed Q4 on the gross margin, you got it to roughly 50 basis points for fiscal year '19 but it seems like some of the drivers are accelerating around product, favorable channel mix, and I believe also FX starts becoming
Nike Free 5.0 Femme incremental [inaudible]. Could you maybe just walk through what other pieces we might be missing that go into that gross margin? I think you threw out product cost. But any color around that would be helpful.Sure. As I said, we see strong gross margin expansion fiscal year '19. You know that our long-term financial model is to deliver as much as 50 basis points of expansion. And
Nike Air Max 1 Damen we have updated that outlook
Nike Air Vapormax Womens to be 50 basis points or slightly greater. That's led by stronger full price selling as well as over-indexing growth in our higher margin make it direct businesses. While FX headwinds are now behind us, we're not forecasting significant FX tailwinds based on current rates and based on FX volatility being renewed of late, we're being measured in that regard even as we look out for the second half of the year.Your last question comes from the line of Matt McClintock from Barclays. Your line is open.
We are forecasting, as you know, at a better pressure on gross margin from select input cost headwinds
Nike Air Huarache Femme within labor, oil, freight, materials. And then I should note that our margins within our margins different than many of our peers, we capture a significant portion of our supply chain cost where some
Nike Air Max 1 Mujer of our peers capture those costs in SGNA and so as we're investing to TwoX speed, we do have some investments in revolutionizing manufacturing and other initiatives that are in that line item of RPNL.Hi, yes, good afternoon everyone. Andy, I wanted to follow-up on something you said in your remarks. You said supply was only a fraction of the demand. And that sounds like a pretty good problem to have. But I was wondering, in the context of TwoX speed as you were just saying, how do we think about optimizing the total value or the total projected value of a new shoe or new sneaker in a world where you have TwoX
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