Fran Horowitz: Yes. I mean the international business has been challenging. There’s a lot of uncertainty still in Europe. We are managing what we can in the short term, right? We’re controlling our inventory. We are continuing to open up stores and we do believe in the long-term opportunity there. So we’ll have to see what the fourth quarter brings. It’s been challenging. .
Janet Kloppenburg: Okay. Thanks so much.
Janet Kloppenburg: You’re welcome.
Operator: Thank you. Now I will take a question from Mauricio Serna from UBS. Please go ahead. Your line is open.
Mauricio Serna: Great. Thanks for taking my questions. And congratulations on the progress. Just wanted to ask if you could elaborate a little bit more on category performance across the two brands, particularly interested in seeing how denim has trended during the quarter. And then maybe if you could talk a little bit about Europe and what are the pockets where you’re seeing some weakness in the market? And lastly, on freight, on the Q4 outlook. I mean, I think I recall from last year, there was like a 370 basis point impact. So I just want to — I wanted to ask if you expect that to fully revert in this quarter or maybe just a more gradual pace. Thanks.
Fran Horowitz: All right, let’s go back up to the top here. So category performance for denim. So we’re seeing actually a little bit of a difference by brand. So Abercrombie had another — Abercrombie women’s, particularly hit another record quarter in denim and the Hollister denim business has gotten sequentially better. What we’re really seeing from the consumer, though, is move into non-denim bottoms. There’s a lot happening. We set another record in Abercrombie women’s where we sold the best pants, I think, in over a decade or something, right over? Yes. And in Hollister often non-bottoms are doing very nicely, as I mentioned just quickly before about cargo pants and things of those opportunities. So we are shifting our receipts into leaning into what’s working, and we’re going to continue to do that.
Scott Lipesky: All right. Let’s up to Europe, so pockets of weakness. So where we are seeing strength, has been relatively consistent. We’ve seen it in the U.K. and we’ve seen it in the Middle East. And then kind of our next few countries, when you think about Germany, France, Italy, that’s where we’ve seen the softness. Obviously, Germany has some significant uncertainty right now with the gas situation over the winter. So like Fran said a minute ago, we’re just keeping our eyes on the region. We will control what we can control, keeping inventory lean, and we’re just going to read and react as we go through the winter. On the freight side and thinking about the outlook. So yes, last year, we had about $75 million hit up with freights when we had significant air usage, high air rates, high ocean rates coming in.
We’re going to get a big chunk of that back this year. You don’t get all of it back. It’s going to take a little bit of time for those lower rates to flow through the P&L.
