It helps us to grow awareness, and as well, as we combine with our distribution around wholesale, we expect that the stores will enjoy more traffic and offer more compelling assortment as consumers start to know and understand and love our brand.
Janine Stichter: Perfect. Thanks so much.
Operator: Please standby for our next question. Our next question comes from Cristina Fernandez with TAG. Your line is now open.
Cristina Fernandez: Thank you for taking my questions. I wanted to ask first on international. It seems like the business took a step down in the quarter. It might just be the function of the year-over-year comparison. But wanted to see if you can talk about what demand trends are you seeing in some of your major international markets and what is the level of promotional activity you’re seeing there. Is it similar to the U.S.? Or is it better? Thanks.
Annie Mitchell: Great. Thanks for your question. And to clarify, within Q3, because we transitioned both Canada and South Korea in the month of September, the transition of those from the direct model to the distributor was worth $750,000 on the top line. Said another way, if we’d continue to operate them, our sales for the quarter would have been higher by $750,000. When we look at the overall trends across the regions, we are seeing that Asia is performing year-over-year in Q3 slightly better than some of the other geographies. And this is largely tied to worldwide macro events, and it really differs by geography. But I would say that China and Japan were definitely some of our better performing overall international geographies.
Joey Zwillinger: And the promotional intensity is reasonably consistent across regions. There’s a little plus or minus here or there, but generally pretty consistent. And I would say that as we have some of these conversations with distributor partners, what we’re finding is that the brand is positioned incredibly strongly and these partners are pretty eager to invest capital behind the brand, and I’m quite optimistic and excited about what they can bring to the business.
Cristina Fernandez: And then, the second question I had is related to some of the pricing actions you took on the core franchises, the original models, for Tree Runner and Wool Runner. What reception did you see to those price decreases? And is the strategy to keep those in the lineup? Or will you sunset those styles as Wool Runner 2 and Tree Runner 2, I guess, get further along?
Joey Zwillinger: Yes. Thanks for the question. Just in general on pricing, what we’re working towards sometime in 2024 is going to be some very clear and distinct price tiers, ranging for the bulk of the business between $98 and $138 per pair in the footwear business. And sharpening those price points is really something we’d like to do, driven from the insights that we’ve seen and the data that we have in terms of where we drive the most volume from our business, particularly when positioned in that active life territory, not promoting heavily technical running-oriented gear that might push you above that $140 threshold. So, that’s where we expect to sit. And I would say that the most important element of those pricing changes was that it is in the lead up to the launch of the Wool Runner 2.
We wanted to make sure there was space between those two models and segment them. Similar thing is going to – we’ll do when we introduce new capsules for the Tree Runner in that Tree Runner 2 orientation, so same kind of thinking. And as those new generations grow the business, we would expect that at some point, we would sunset the original models, albeit in some cases, we might not do it immediately.
Cristina Fernandez: Thanks.
Operator: One moment for our next question. Our next question comes from Mark Altschwager with Baird. Your line is now open.
Mark Altschwager: Good afternoon. Thanks for taking my questions. First off, maybe just a modeling question for Annie. Just with respect to the Q4 revenue guidance, can you give us a breakdown with what you expect for U.S. versus international? I know there were some comments in the prepared remarks on the distributor changes, but if you could maybe simplify it for us a little bit, that would be helpful.
Annie Mitchell: Yes. And to be clear, are you looking for year-over-year growth?
Mark Altschwager: Correct.
