Good morning. My name is Andrea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Canada Goose Third Quarter Fiscal 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Thank you. I would now like to turn the call over to Patrick Burke, Senior Director, Investor Relations. Please begin your conference.
Thank you, and good morning, everyone. With me are Danny Reese, President and CEO and Jonathan Sinclair, EVP and CFO. After prepared remarks from Danny and Jonathan, we will take your questions. This call, including the Q and A portion, includes forward looking statements. Each forward looking Certain material factors and assumptions were considered and applied in making these forward looking statements.
Additional information regarding these forward looking statements, factors and assumptions is available in our earnings press release issued this morning as well as in the Risk Factors section of our most recent annual report. These documents are also available on the Investor Relations section of our website. The forward looking statements made on this call speak only as of today, and we undertake no obligation to update or revise any of these statements. Our commentary today will include certain non IFRS financial measures, which are reconciled in the table at the end of our press release issued this morning and available on our Investor Relations website. With that, I will turn the call over to Danny.
Thank you, Patrick, and good morning, everyone. I am pleased to speak with you today about our performance in our Q3, which has exceeded our expectations. We began this fiscal year with many unknowns, so we leaned into what we knew to be true. We advanced our long term plans to best capture and serve demand, while at the same time placing our business in the best position for continued growth. This approach has delivered strong results when it matters the most.
Today, I will provide an overview of our 3rd quarter results and share an update on 3 areas: 1, our strategic areas of focus 2, our purpose based commitments and 3, our outlook for the rest of the fiscal year. In the Q3 of the fiscal year, our business showed remarkable resilience, We have outperformed our own expectations. Total revenue increased by 4.8 percent to $474,000,000 despite extensive closures and operating restrictions. This marks a return to growth for Canada Goose in our biggest quarter, and we did it with strong profitability and cash flow. Adjusted EBIT margin in the quarter was 33.3% and free operating cash increased by $75,100,000 to $309,600,000 Our 3rd quarter results reflecting the impact of our strategic long term initiatives, our flexibility and the key investments.
To give you further context, here are a few highlights. First, I'd like to give an update on our digital business, which we believe to be a foundational component of the future of retail. We have invested heavily in our e commerce business for years with a long term view. This year, we successfully executed against that long term strategy and at the same time, strategically deployed additional resources to better capture and serve demand around the world in our peak season. As a result, our global e commerce revenue increased by 39.3%, and We are encouraged by the strong momentum and acceleration that we continue to see across our e commerce business in the 4th quarter.
This quarter, I feel it's important to give deeper geographical insight into our e commerce business. Across each of our major markets, we saw strong double digit growth. Europe was particularly strong, This includes France, Germany and Ireland and a nearly doubling of our digital business in the UK. In Mainland China, Tmall continues to be a bright spot in a powerful channel for our brand. And in our well established sites in Canada and the United States, We saw a strong increase in revenue from a contribution perspective.
Now to our next strategic priority, Mainland China. On our last earnings call, I spoke about the growth plans that we put in place for our business in the region. We have continued to execute on these plans. In the past year, we have more than doubled the number of stores we operate in the market. This quarter, we saw that our investment has delivered strong results and Our Mainland China DTC revenue has increased by 41.7%.
We're still very early in our journey in Mainland China, And we see significant opportunity to continue to grow our network in the region. In the year that began with so much uncertainty Throughout it all, we've learned more about shifts in our customers' behavior, which has shaped our strategic approach moving forward. On our last call, I discussed in store omnichannel shopping, which I just gone live. We believe that it would be a needle mover customer experience in conversion, and I'm pleased to say that it has been. As the path to purchase continues to evolve, This quarter, we truly saw the power of the endless aisle.
We consider this a validation of our approach to enable Canada Goose fans to shop with us wherever they are, whenever they want and with access to our complete assortment. Today, I also want to highlight the continued importance of sustainability across our business. We are steadfast in our commitment to strengthening our communities protecting our planet and working towards a better future for generations to come. In this quarter, we introduced human nature, a purpose based platform that unites our sustainability and values based initiatives. It is the driving force of our enduring commitment embedded across every aspect of our operations.
The role of Bemis has evolved in today's world and driving meaningful change Has become fundamental to today's consumer. We are focused on keeping the planet cold and the people on it warm through our sustainable impact strategy, continued product innovation, invigorating global communities and building culture through the arts. We've been trusted to protect people from the elements and now through human nature, we are taking warmth to an even deeper level. Building on that, this past January, we launched our most sustainable parka to date, the standard expedition parka. This brand new style Inspired by the iconic expedition parka, encapsulates our heritage, renowned functionality and epitomizes sustainable innovation.
This product is significantly forward for our brand, helping to set the standard for the future of outerwear at Canada Goose. We have kept sustainability at the forefront throughout the past 6 decades, driven by constant innovation for the betterment of both our consumers and the planet. And I'm proud to say that this is only the beginning of a sustainable apparel journey and that the consumer response has masked our own excitement as the style has nearly sold out. Further to the topic of brand momentum and consumer relevance, last month, we partnered with Shanghai based Angel Chang, our first ever guest designer. We challenged her to take her heritage pieces and co create a capsule based on her innovative design direction.
The collection is a relevant to Michael Armstrong, who joined our Board of Directors in January. A 22 year industry veteran, he is currently EVP worldwide television licensing and operations for ViacomCBS Global Distribution Group. I'm confident that his vast popular culture, entertainment and media exposure and experience will provide a valuable perspective as we continue to execute on our long term growth strategy. And with that, I'll turn it over to Jonathan to go over the details of our financial results and outlook.
Good morning, everyone. Thanks, Damian. Thank you all for joining us. Looking at our Q3 performance and our current trends, there are 3 key themes that stand out. Canada Goose has returned to growth.
The resilience of our earnings and cash model has delivered, and we're entering the final quarter of the fiscal year with strong momentum. Starting with the top line. Total revenue increased by 4.8 percent to $474,000,000 with significant sequential improvement across our business. This reflects global demand strength as well as our ability to pivot our distribution to where the consumer is shopping today. Coming out of the first COVID wave in the summer, We were in the midst of a massive digital shift in consumer behavior.
We knew that e commerce to the full winter selling season from logistics to inventory, marketing and experience. The result is a strong acceleration in performance in Opdivis quarter. E Commerce grew by 39.3 We're pleased with how smoothly our 3PL network handled and shipped record online volumes during peak. The transition we completed in the summer to enhance scalability and service levels was central to achieving this. Geographically, there was well balanced double digit growth in all of our major e commerce markets.
In North America, we saw strong contributions from our well established sites in Canada and the U. S. In Mainland China, our shop in Tmall's Luxury Pavilion continues to be a powerful engine for growth. And last but not least, Our momentum in Europe was exceptional. This includes very strong results in Germany, to France and the Republic of Ireland had a near doubling of our digital business in the U.
K. Alongside e commerce, our other big Strategic bet this year was store expansion in Asia. With the total shutoff of international shopping, We knew that serving the world's largest luxury consumer base at home was critical. DTC revenue in Main China Increased by 41.7 percent with existing stores near pre pandemic levels and the completion of our 2 remaining openings in Changchun Charter and Shanghai IAPM. This strengthens our conviction in runway.
We further expand in Tier 1 and Tier 2 cities, complemented by the reach of Tmall. At our stores in North America and Europe, we faced outsized headwinds from capacity restrictions and mandatory closures, compounded by a lack of international traffic. In Q3, we lost 35 trading days for each of our 3 locations in Toronto with Ottawa and Montreal also shutting at the end of the In London, we lost 36 trading days with Paris and Milan each closed for 30 as well as Berlin for 12 days. These closures include some of our most productive stores globally in their biggest and busiest to achieve total DTC revenue of 299,400,000 Only $2,400,000 less than last year is a great result. Relative to Q2, we offset a much greater proportion of retail declines through e commerce and when open, the stores delivered strong productivity.
Wholesale increased by 2.7 percent to $160,800,000 This was driven by later shipment timing based on request for more of an in season fulfillment model. We're pleased with the performance of our partners this fall winter, and we will continue to to take a controlled brand first approach to managing this channel. Moving to earnings and cash flow. Adjusted EBIT margin Was 33.3 percent in the quarter. This is a level of profitability most brands never come near, let alone in times like these.
Our resilience is grounded in full price economics and highly productive distribution. Consolidated gross margin was 66.8 percent with PTC at 77.9% and wholesale at $0.515 Both channels were above typical levels due to temporary to tailwinds. Gross margins in the mid-70s for DTC and mid- to high-40s for wholesale remain the right level for our business over the long term. That said, these increases also reflect the durability of our gross margin Going down the P and L, DTC operating margin was 55%. Retail profitability was impacted by operating disruptions but was still very strong, and the uplift from e commerce growth was a positive partial offset.
Wholesale operating margin came in at 42.9%. While aggressively managing costs and cutting discretionary spending, we are well equipped to play offense when we see the opportunity. We accelerated SG and A investments in brand and demand building while still delivering a strong profit this quarter. Adjusted EPS per diluted share was $1.01 compared to $1.08 last year. Moving to cash.
Free operating cash flow was $309,600,000 an increase of to $75,100,000 driven by reduced working capital. As a vertical manufacturer with an evergreen offering, we are executing against our planned drawdown of to the stage goods. Inventory decreased by 2.6% relative to Q3 last year and 17.8% and a high degree of flexibility. Cash was $469,000,000 at the quarter end, alongside an additional $256,000,000 of available borrowing capacity in our undrawn revolver. Finishing with current trends.
We are encouraged by the continued acceleration that we have seen in e commerce growth since On the retail side, however, store closures and mobility restrictions have intensified. 25% of our own retail stores globally are currently closed. Globally, we've also seen a slowdown In wholesale, the vast majority of our shipments have been completed for the year. Q4 is Seasonally, a very small quarter for the channel, and we currently expect a low double digit year over year revenue decline. We concluded our contractual obligations for PPE Manufacturing in Q3.
And as a result, We do not expect further revenue from these activities in the other segment in Q4. In terms of gross margin, we do not Expect the DTC and wholesale gross margins in Q4 to repeat the large euro to be increase we had in Q3. This is due to seasonal spring products and a reduction in waste subsidies and manufacturing. Lastly, we expect total SG and A in Q4 to grow at a similar rate year over year to the rate we saw in Q3, driven by our continued investments in brand and demand building. At the start of this year, we moved aggressively to protect the downside while investing with conviction where we saw opportunity.
Our success this quarter shows that, that strategy is working. We can grow, and we can be highly profitable in a challenged operating environment. We believe that this underscores our potential when the world comes out of this pandemic. We know that the path there won't be a straight line, but we're on the right track, and I look forward to updating you on our progress on our next call. And with that, I will pass it over to our operator to begin Q and A.
Your first question comes from the line of Omar Saad of Evercore. Omar, your line is open.
So I'm wondering about I appreciate the information around the tourist impact. Sounds like it was a pretty big drag, but maybe you could dive in a little bit deeper, especially in North America and Europe, where there has historically been a strong tourist customer. And maybe you could also shed some light on the mix of your business between locals and tourists in your key market. And then also the Chinese tour Such an important tourist. Do you have the footprint and presence you need in China to recapture some of those lost tourists there yet?
Thanks, guys.
Hey, Omar. Thanks for your question. Good question. We're certainly in an environment with No international traffic in North America and Europe, not in fact, the Victoria has been closed. And this has been the case since last spring.
So I'm really pleased with the strength of the demand that we've seen from local markets and from all of our consumers in these markets. Actually, it's been strong in and of itself. And for example, our revenue in Europe and the rest of the world Increased by 30%. That's a reason what has been particularly hard hit by tourism declines recently and who are up there. So I'm very encouraged by what we've been seeing in our local markets from our local consumers.
And if I can give that add a couple of points to that. I mean, I think in a pre COVID world, you'll have heard us say many times our retail traffic had roughly a split of fifty-fifty between local and international consumers. And strategically, Our focus this year has been on serving those traveling international consumers at home and driving demand in the local markets. And the fact that we were able to grow our business in Q3 with all of these headwinds is really, really encouraging. When it comes to China, we've had a great couple of quarters of in China this year, this most recent one up 41.7%.
We are seeing great progress both in our existing stores And in the news source, we've got a very clearly established strategy of Tier 1 and Tier 2 complemented by reach, and we are able to take great advantage of that market by executing on that strategy. We're very pleased with how it's going.
Your next question comes from the line of Jay Sole with UBS.
Hi, good morning. This is Mauricio Serna on behalf of J. Soul. A couple of questions. I know the Q4 you mentioned is not That's relevant on the wholesale channel.
But what are you seeing in terms of wholesale book orders? Don't know if it's too early to ask maybe on like the fall season. If you could comment also a little bit about how the e commerce channel grew Like throughout the quarter, throughout this last quarter. And lastly, as you were mentioning your focus in China and Tier 1 and Tier to cities. So how does that translate into like potential store openings as we move into the next couple of years?
Thank you.
So I think our wholesale order book is something we typically talk about in the next call. But we run a process which we're running this year, and we're very pleased with how it's getting. I think That, I can give you some assurance about that. We talked a little bit of color on the e commerce performance geographically speaking. I think we talked in our last call about how we've seen Acceleration toward the end of the second quarter in our e commerce performance year That's an acceleration that continued to build through the Q3 just as the numbers got bigger and just as it really mattered.
And that acceleration is something that I'm pleased to say has continued beyond the Q3 and into the Q4. And when we think about the future and where we're going with stores, this is we're continuing to execute on our strategy. There's no change to that, and that's something we'll comment on further in due course. But suffice to say, there is no change We see DTC as an important and key avenue for growth in this business, both online and
And to add to that, I agree with all of that. I think that I'm particularly proud of this year of this quarter of the team and our ability to have our biggest quarter ever under these circumstances during the global pandemic. We've seen the global consumer from all over the world drive growth and acceleration and really Really, Cementos is a lifestyle brand that they are gravitating towards and that makes me very optimistic and hopeful
Your next question comes from the line of Kate Fitzsimons of RBC Capital Markets.
Yes. Hi, good morning. Congratulations on the return to growth. I guess I wanted to 2 quick ones for me. You guys have noted a couple of times on the acceleration in the e commerce business here in Q4.
It is interesting because it seems at least demand for Your brand tends to maybe happen earlier in the winter season. So curious what you think is driving the acceleration there? Any comments on regional performance or response to early spring selling that would be helpful. And then secondly, Jonathan, you As we look out to Q4, what are some of the strategic expense priorities in Q4 and beyond? When we look to the channel, wholesale, DTC and also that unallocated expense bucket, that would be helpful.
Thank you.
Thank you for your question. I will start off by giving a few commentary about that. I think that As we saw in previous quarters and throughout this year, the consumer mentality is much more of a buy now, wear now mentality. I think that's important given the shift to the right. And I think also with regards to our brand specifically, we're a very relevant brand at a time like this.
We're a survival brand. We make products that last. We make products that are functional. And I think that consumers these days are certainly in times like this that people are driven to products like ours. And I think in general, People these days are looking for real things that have real functional attributes and authenticity behind them.
And I think That is part of the reason for the acceleration and continued acceleration.
And then on the question of cost, I think The key investments that we've been making, as I sort of referred to it a little bit in my prepared remarks, are around brand and demand building. And we deliberately weren't investing as much. But if you think about the business being Much more of the buy now and where now, more of the Panisse just talked about. I think what's key is that you jump on the investment as the market comes into season, and that's what we were doing. And whether it was around the markets that we were opening up online or whether it was about the existing markets or in support of the markets where we're opening stores, we have been to build brand awareness, to build brand salience and to capitalize on the demand and convert it into the business that we're reporting today.
And that's something that because it's a buy now, wear now model and because this is now we've got the peak continuing into Q4. That's why we're continuing to invest in it and that's why you'll see the cost continues to go up. But we're very comfortable with that because we see the payback.
Your next question comes from the line of Ike Boruchow with Wells Fargo.
Hey, good morning, everyone. Just two quick ones for me. Jonathan, You guys had some great cash flow. It's a lot of cash you guys have on the balance sheet relative to years past. Any thoughts on use of cash or your Capital allocation and then we appreciate the wholesale commentary for 4Q.
Is there any commentary? There's a lot of noise with the store closures and But any help on the BTC revenues that are embedded in your plan for 4Q as well?
Okay. So I think when it comes to capital allocation, our top priority is investing in the growth of this business. We say it as and we've said so many times, but it remains true that huge untapped potential. And therefore, from our point of view, top priority, top return on capital is always going to be investing in the future of this business. And we said before, we're going to invest $45,000,000,000 This year in capital expenditure, that's very much on track.
And that will rise and fall as the needs of the business demand. That remains our top priority. We're not looking So then thinking about Q4, I We've had obviously the good momentum in and accelerating momentum in online offset by the fact that some of the stores are closed. But as we move through the quarter, you've got to think last year also Was pretty heavily impaired from about this point in the quarter on. So I think there's a strong case to say that this business has got very good DTC momentum.
Your next question comes from the line of Megan Annette with TD Securities.
Thanks. Good morning. So Dan, you touched on this in your remarks. So wondering if you could talk a bit more about the success from the various collaborations that were launched during the quarter and also early into Q4. So what kind of response are you seeing there from the consumer?
And is there any color you can provide on the pipeline of collaborations that you're working on in the upcoming year? And just lastly, any update on plans for the footwear launch that you can touch on. Thank you.
Yes. Thank you for your question. And yes, Collaborations are a very important part of our business and they have been successful for us this year. We are our 1st ever guest designer this year. Shane had Grace, Angel Chen.
She designed a capsule collection for us and It's been received very well by our consumers and these are opportunities that provide They really provide high moments for our brand and ways for our brand to be reinterpreted for by different Designers for different markets and this has been a collaboration which has been received well generally. And we do intend to do more guest designer collaborations in the future. It's definitely been something which works for us as we do with our collaborations, which we've been doing for many years. In terms of footwear, we're still on track to launch that at the end of this next year, next fall. I'm very excited about it.
I think footwear is going to be a very category for us in the long term. I think we're doing it the right way. I think our strategy was very carefully thought through and we're executing against that strategy well and I believe that execution is one of our strong points. I think that I'm very excited for the market to see what our footwear looks like and what we can do with it.
Your next question comes from the line of Oliver Chen of Cowen.
Hi. Regarding innovation and product, Danny, how are you thinking about focuses on the lighter weight product and non evergreen, you have a really a Strong core. And then as we look ahead, inventory relative to sales growth, would love your thoughts on how you're planning that given the performance here and how your production availability or utilization looks? Thank you.
Thanks, Oliver. So with regards to innovation and product, first of all, our core product and I mean our core business model is Still very important that we have a strong core and we've seen that this year as well. Consumers have gravitated towards that. But at the same time, there has been a lot of product diversification, a lot of diversification into lightweight down. Our knitwear has been well received.
Our fleece has been well received. And we've certainly seen that we have, let's say, permission from our consumers to get into new categories that make sense for us. And of course, it's very important for us that we do that in a best in class way and then we put a best in class into the market regardless of what category it is. But I'm very encouraged to see the diversification globally. And I think that, that just speaks to the relevance of Canada use to the global lifestyle.
I think when it comes to inventory, I mean, clearly, we're reporting a modest decline this quarter. It's exactly where we want it to be. We've always said that we're going to draw down on the inventory levels at the start of the year. That's exactly how this is playing out. And it generated a huge amount of our cash flow in Q3.
As a vertical manufacturer with an evergreen offering, The beauty is that we can do this without constraining our commercial flexibility. So we've got a really strong position With already staged inventory, and we can adjust balance speed. But frankly, if we were an outsourced model, we couldn't.
Your next question comes from the line of Mark Petrie with CIBC.
Hey, good morning. You touched on this earlier, but I just want to follow-up specifically with regards to China and sort of the evolution in shopping behavior there. And recognizing that, you know, parkas obviously do drive the business, particularly for Q3, I'm interested to hear about the adoption beyond parkas and how the sales Mix in China compares to other regions where you had a direct to consumer presence longer, specifically sort Parkers versus accessories or knitwear and then what that tells you about how the brand is building in that market?
I think the way to think about that is that we obviously, we've seen great headway with Parkers in China, but we've out and getting a much more rounded presence with the consumer, which is important, but the full breadth and depth of the brand and our presence in the market. I guess what you probably see is the hardest If you think about it from a north west to south point of view, in the southern part of China, It's much warmer. It's less frigid in the winter. And therefore, you get more of a mix In favor of the lighter weight products there, whereas you go further north and particularly in the depths of winter, it's a more heavy part of And Rachel?
Yes. I'd like to add to that. I just think it back to previous comments a little bit. I think that this just speaks to The growth of Canada uses a lifestyle brand and our products being accepted across multiple categories that makes sense for us. And It's very encouraging.
I see a lot more of it in the future and I believe that there's a lot of opportunity ahead of us.
Your next question comes from the line of Adrienne Yih with Barclays.
Hello, good morning. My question is actually on kind of the reinstallation or reengagement of the manufacturing process starting for this year for winter What level of innovation are you planning for winter 2021? And then secondarily, on the wholesale guidance for 4th quarter, Is that largely due to current bookings? What's the opportunity for upside to that number? And upon full Do you think you will reengage with the same number and sort of inventory depth in these channel partners?
Thank you very much.
Thank you for your question. If I understand your question correctly with regards to factory innovation, We are constantly innovating and finding more efficient ways to manufacture our products. We're really proud that we We do have 8 facilities here in Canada and that we're always innovating and making them more And we have the largest manufacturing infrastructure of this kind in this country, Employing approximately 20% of the Shut and Silver Force Canada. And in terms of our wholesale business, I mean, we're really happy with And we as always, wholesale is a very important part of our business. Our wholesale partners are like minded partners who add value to our brand.
And Jonathan will add some more color to the numbers of that.
Yes. I mean, the one thing I'd This is a tiny quarter for wholesale. And so and that's normal. This is a highly seasonal business. Pretty much all of the wholesale is done before we get into this quarter.
This year is no different. And that will be down year over year. It's very small numbers, and that's also important to keep Notwithstanding the closures and the restrictions, we're positive about the wholesale channel, but at the same time, and as I said earlier, we are very disciplined. We're very controlled about what we do. We see it as a Strong complementary brand accretive channel when it's managed well, and that's what we intend to do.
Your next question comes from the line of Brian McNamara with Berenberg Capital.
Hi, good morning. Thanks for taking the question. Just a follow-up on wholesale. So the results came in much better than your guidance of a low double digit Could you provide more color on what drove that large delta? And also, is it reasonable to assume you've called a significant amount of wholesale partner just given the after effects And if so, have your stronger partners been getting better allocations as a result?
Thank you.
Yes. I mean, our wholesale performance And in the quarter, it was something we're very pleased with. Obviously, the primary Source of revenue in the quarter is that we are fulfilling our order book. That's what we did. To the extent that Customers want to want more.
It's something that we consider in our allocation model after we consider the priorities of DTC. Notwithstanding that, we were able to Meet those requests, and so that produced some positive growth. We were very pleased with how that has turned out. We're also I think the other thing to think about is as we look at the size of our wholesale business, No, we've been on a continual edit or continuous edit of our wholesale distribution For the last several years, we don't see that changing anytime soon. For us, what matters is quality of distribution over quantity of distribution, and that's What's so important, and so we should expect to continue to focus on that as we move forward, but equally with an important part of our business in this channel.
Your next question comes from the line of Robbie Ohmes with Bank of America Securities.
Hey, guys. Thanks for taking my question. I I wanted to just ask about the U. S. Market in particular.
The U. S. Revenues, I think, were down a little bit for the quarter, but digital you pointed out was strong double digit. Are the was wholesale Weaker in the U. S.
Than other regions or were the stores much weaker versus what you're seeing in China and maybe a little more color on kind of how the U. S. Market played out through the quarter.
Yes. I mean so what I'd say to give a bit more color on that, I mean, first of all, online performed extremely well. We were very happy with it, and it's a big business, and it grew nicely. Thank you. So it was a very strong Stores were a little bit interrupted.
I think there was some noise around the election and Traffic and revenue has been disrupted. Our wholesale business was very good. As As I said before, we fulfilled the wholesale order book. We were able to deal with requests for further product. So from our point of view, we were very happy with the U.
S. Market. We see it as having a lot more potential for us, But at the same time, we enjoyed good performance this quarter.
Yes. I'd like to echo that sentiment in that I think that given that as we all know, there was no tourism this year and there were major disruptions, many stores, Wholesale and retail were closed at different points in time throughout the year. I think that the strength That wholesale and retail showed during the time that they were opened for local as it relates to local consumers was extremely robust, I was strong and certainly demonstrated the demand, the underlying demand for our product, which was very encouraging.
I would now like to hand the call back to Mr. Danny Reese for any closing remarks.
Well, thank you very much. Thanks to everybody for joining the call. Before we leave, I would like to close by acknowledging how challenging a year I'd also like to sincerely thank our team members around the world for their continued efforts, resilience and strength and for showing such strong embodiment of our values throughout this very difficult year. Thank you everybody again for joining us on this call and I certainly look forward to talking to you guys again soon.
Thank you for your participation. This concludes today's call. You may now disconnect.