Jesse Sobelson: This is Jesse Sobelson on for Ike. Thank for taking our question. We were just curious for an update on the profitability algorithm with your business. Is it realistic to assume the company could return to its low to mid-20s margin goal next fiscal year?
Wendy Arlin: Thanks, Jess, for your question. So I would tell you a couple of things. Number one is you will definitely hear from us in terms of guidance for next year in February. We are thoughtfully thinking about our plans for next year. In terms of things that we’re focused on that will impact how we think about our long-range planning, two major things come to mind, actually three. Number one, as I answered earlier, inflation and cost pressures still do exist in our business. We’re working to mitigate those, but those still exist as we turn the calendar into 2023. Number two is we do want to be thoughtful on our promotional approach, as we go into 2023. As we said, the customer is extremely price sensitive right now, and we want to be mindful of that and thoughtful with how we price our products in this tough environment.
And the third point is we are investing in technology. Right now, we’re focused on separation. But as we look beyond separation, we see a lot of ways that we can improve our customer experience, and we’re thinking about how do we want to do that and what investments we make there. So more to come when we talk to you in February. And we €“ right now, we are focused on winning at Christmas. So we will work as hard as we can to deliver successful Q4. Thank you. Next question please.
Operator: Our next question comes from Paul Lejuez. Your line is now open.
Paul Lejuez: Hey, thanks, guys. I just want to go back to the loyalty program for a second. I’m curious if what you’re seeing is when you have a customer join, are you seeing that customer actually spend more than they did previously? Or is it more that the folks that are signing up just happen to be your higher-spending customer? I’m kind of curious if you have any data that might show that once you get somebody kind of over that line that they increased their spending anything you could provide there? Thanks.
Wendy Arlin: Sure. Yes. So what we see €“ so as a reminder, we’ve just launched in the U.S. €“ nationwide in August. But prior to that we were running a test and a test for a meaningful amount of time. And what our test showed was that on a decile-adjusted basis, loyalty customers spend more and visit us more often. So in other words, it wasn’t just looking at the customers that love us and come all the time. I mean if you decile adjust it and look at levels of spend, the program was effective in test in terms of getting customers to spend more money and visit us more often. So we’re very early in the nationwide rollout, but we are very optimistic about the future benefits of this program. We are seeing such high levels of engagement, as Julie indicated. So we do get excited when we think about the loyalty program and what it can do for this business in the future.
Paul Lejuez: Any quantification of the lift?
Wendy Arlin: So right, we have seen a list. Like I said, it’s very early. We just launched in August. So more to come, but we have seen positive results from the program. Thank you. Next question please.
Operator: Our next question comes from Jonna Kim with Cowen. Your line is now open.
