Fiscal 2024 Outlook
As a result of its strong second quarter results, the company is reaffirming its net sales and operating expense outlook for fiscal 2024 and increasing its outlook for gross margin and operating income growth compared to prior expectations. This outlook takes into consideration the unchanged and continued uncertain consumer and macro environment.
Please note that the company's projected full year fiscal 2024 operating income growth below is provided in comparison to its full year fiscal 2023 adjusted operating income, which excludes $93 million in restructuring costs and a $47 million gain on sale of a building.
Full Year Fiscal 2024
Current FY 2024 Outlook | Prior FY 2024 Outlook | FY 2023 Results | |||
Net sales | Up slightly on a 52-week basis | Up slightly on a 52-week basis | $14.9 billion | ||
Gross margin | Approximately 200 bps expansion | At least 150 bps expansion | 38.8 % | ||
Operating expense | Approximately $5.1 billion | Approximately $5.1 billion | $5.17 billion (adjusted)1 | ||
Operating income | Mid to High 50% growth range | Mid 40% growth range | $606 million (adjusted) | ||
Effective tax rate | Approximately 28% | Approximately 28% | 9.7 % | ||
Capital expenditures | Approximately $500 million | Approximately $500 million | $420 million |
1 Fiscal year 2023 adjusted operating expense of $5.17 billion excludes $89 million in restructuring costs and a $47 million gain on sale. |
Third Quarter Fiscal 2024
Q3 2024 Outlook | Q3 2023 Results | ||
Net sales | Up slightly | $3.77 billion | |
Gross margin | 50 to 75 bps expansion | 41.3 % | |
Operating expense | Approximately $1.3 billion | $1.3 billion |