How do you make sure that the person who's loyal to a certain shoe will get that next version of the shoe when you innovate on it?

Yeah, Tim, you're on it.

This is the puzzle we have to solve every single year.

We have to retain customers that love our products, and we have to innovate for new customers to come into our brand.

And we've been able to do that 25 years of 14% compounded annual growth rate.

That comes from understanding the biomechanics of human motion.

and making sure that when you buy a brooks that you are in a safe product and a performant product we do that every single season and then you have to match it with innovation and materials both in the upper and the midsole and right now in our space we've got three styles that are winning around the world the glycerin the ghost and the adrenaline these are massive styles they're in the top 10 here in the us and the top 10 in europe as well so it's a franchise style model but it's retention and attaining new customers that is our mission.

I love it.

I would love to know what is the breakdown between Europe, China, the US? And I want to just, if we can kind of drill down a little bit more into how the US consumer is doing.

Yeah.

So for our business, Carol, the U.S. is our largest region.

About 80 percent of our global revenue comes out of the U.S. And that's why it's so exciting for us in terms of the growth that we see ahead.

We are very meaningful in the European market.

We're the number one brand in Germany now in performance run.

It's been a 10-year vision of ours to achieve that.

So on the consumer and the consumer choosing Brooks, why are they choosing Brooks from a technological perspective rather than a competitor such as Hoka or Nike? What is the differentiator with Brooks running technology?

Mm-hmm.

So we built our entire business model around independent running retailers because we knew that they were the best editors of the best brands and the best products in the world.

And if we could get them to adopt our products and recommend them to runners, we were onto something.

So, we built our entire business model with this great product for the independent retailer.

What d- that looks like, you know, inventory planning for an independent shop who doesn't have a big backroom for inventory.

So we had to stock all the inventory.

We have not changed that model.

What was your biggest risk that you took?