Michael hit on a bunch of them, delivery, warehousing costs, some headway in store payroll and a lot more to come. But – so there is more benefit embedded in the guidance, and really the impact of incentives is offsetting that a little bit.
Chris Nardone: Got it. Thank you.
Operator: Thank you. Our next question comes from the line of Alex Stratton with Morgan Stanley. Please proceed with your question.
Alex Straton: Great. Thanks so much for taking the question. Really two from me. One, just on the gross margin in the quarter. Did you guys quantify how much of the outperformance you would attribute to the cost-savings initiatives? And then I just wanted to make sure I understood. Were there just one or two of the things you had identified that flowed through this quarter, and then there’s still more to come there in the back half? Just trying to understand all the moving pieces there because it sounds like a lot of different initiatives. And then just secondly, on the full year guide, I want to just dig into the components of the raise and how you’re kind of thinking about Aerie versus AE growth in the back half. Thanks so much.
Mike Mathias: Yes. So the gross margin in the second quarter, we had benefits both from the acceleration – or across a bunch of different fronts. The acceleration in the business, really, it started in June through July like we’ve described. Then we did have cost-savings initiatives. The change to our – that clearance sell-off of end-of-season goods had a benefit in the second quarter. It will have an annual benefit beyond what we were able to book in the second quarter or capture in the second quarter. And we – obviously, we did recapture the freight headwinds from last year as well as the impact of selling off extraordinary amount of units or not – higher than historical amount of units last year in the second quarter. In the full year guide then, we do have continued growth.
Really, the gross margin benefits that we’re rolling through this forecast continued benefits through the delivery savings we’re seeing with a wider network, including the capabilities we have for Quiet, warehousing costs alongside that. So compensation as well as other DC-related costs, and benefits through just gross margin in general from continued benefits to markup and controlling markdowns with very healthy inventory levels. So the guide really reflects a low single-digit revenue trend. Aerie’s still at this accelerated pace. I think it’s probably a low double-digit trend, AE flat to positive with the gross margin benefits that we’ve been able to see through the second quarter continuing through the back half of this year.
Alex Straton: Thanks a lot.
Operator: Thank you. Our next question comes from the line of Marni Shapiro with Retail Tracker. Please proceed with your question.
Marni Shapiro: Hi, everybody. Congratulations on all the improvements. The stores look great. Jen, I just wanted to dig in on two quick things. The fashion in the stores, particularly on the women’s side, seems to be moving at a very quick pace. Like a few days on hand, it seems it’s turning very quickly. So I’m curious if you could just talk a little bit about the balance of the fashion and your ability to — how quickly you will be able to chase back in. And do you feel well set for holiday in that balance? And then just on the expense line, I’m assuming the Ziegler sisters and everything that you guys are doing to capture attention, I’m assuming all of that is embedded in the marketing costs and the forward guidance on SG&A. Is that correct?
