Beth Gerstein: Yeah. I would say that it’s still pretty early as it relates to the data that we’re gathering from mall base. We’re pleased to see the early results, the fact that we’re getting nice walk-in traffic, the fact that we’re also able to serve those very highly personalized appointments. So that’s an important part of the model that we continue to see in malls, but I think it’s still a little early to call and so it’s something we’re going to be watching over the holiday season and the upcoming quarters.
Ashley Owens : Okay, great. And then just quickly on bridal. You mentioned some softness in during the quarter, but momentum kind of entering that holiday period. Do you think for the customers that are making the purchase maybe they’re kind of elongating that decision time due to the macro? Or what are you seeing there?
Beth Gerstein: I think that we saw that elongation starting last October, I would say we’re seeing similar types of behaviors overall in terms of the overall macro. I think what’s more of a driver is just that we’ve experienced more of a disruption over the last few years of the pandemic and we’re still normalizing — still have a lot of confidence in bridal as being very resilient for the long-term, but it’s just going to take a little longer to normalize based on what we’ve seen.
Ashley Owens : Understood. Thanks so much.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Dana Telsey with Telsey Advisory Group. Your line is open. Please go ahead.
Dana Telsey : Hi, good afternoon, everyone. As you think of the fine jewelry category and obviously the launch that you had this quarter, the new introduction, how do you think about the overall AOV? And what’s your updated sense of where fine jewelry can go as a percentage of the mix, given the managing of going through bridal with the normalization that’s occurring there right now? And then lastly, on the gross margin, just raw materials, what are you seeing in prices of raw materials? And are you experiencing or planning to adjust any prices also? Thank you.
Beth Gerstein: Great. Thanks, Dana. As it relates to fine jewelry, I think we had mentioned in our remarks that overall ASP has actually increased, which is something that we’re really proud of. And we do see ourselves as a premium offering highly curated. So the fact that we’re driving higher ASPs I think just shows that a lot of our efforts are working there. As it relates to the overall AOV, we do expect it to decrease that. But I think that is actually still very accretive, it drives higher repeat rates. We see a lot more affinity in terms of the brand and the overall website experience as it relates to fine jewelry. So I think that’s really a positive. In terms of how we think about the mix, if you look at most jewelers, fine jewelry as the majority of the sales, so the fact that we are well under that just shows you all the upside that we have there and why we’ve been investing in it as a category. Jeff, do you want to talk through the gross margin and pricing?
Jeff Kuo: So in terms of gross margin, as we’ve talked about in some of our past calls, we do take a really dynamic approach towards how we price and our pricing engine really allows us to act in a much more agile fashion than most others in that we’re able to take our light inventory, we’re able to see conditions that are evolving in the market, including prices of raw materials and price for that right mix of revenue and gross margin percentage. And it’s something that’s dynamic, that there’s a feedback loop and really provides us a lot of flexibility in adjusting to market conditions and being able to perform well in a variety of different environments. And I think this — this environment is no different in that regard and then our agility serve as a competitive advantage.
Beth Gerstein: And I would just add to that, that we are a premium brand. So we are thinking about how we can price based on the premium nature both in terms of the quality that we’re offering, our sustainability, the overall experience. And so the brand differentiation that we have, the product differentiation that we have also is, I think, a source of value and helps to drive our gross margins.
Dana Telsey : Thank you.
Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Edward Yruma with Piper Sandler. Your line is open. Please go ahead.
Edward Yruma : Hey, good afternoon, guys. Thanks for taking the question. I guess, first, just not to harp on bridal, but are you seeing any kind of ASP shift? Are you seeing evidence that consumer is trading down within bridal or is it simply just fewer engagements? And then as a follow-up, we’re starting to hear rumblings of tighter consumer credit. I know you guys have a multitude of different partners, but trying to understand if you see any changes in penetration financing or ability to get your consumers financed? Thank you.
Beth Gerstein: Sure. As it relates to ASP, I can start with that as it relates to bridal. We’re seeing ASPs be pretty stable. We talked about how this is a category where customers really shop with the budget and that’s something that’s borne out this year. We also have actually seen ASP in Q3 be somewhat higher than in Q2. So I would say relatively stable. We’re not really seeing more trade down or anything like that versus what we have seen over the — really from the beginning of the year. Jeff, do you want to talk to credit?
Jeff Kuo: Yeah. And as it relates to consumer credit, as you pointed out, Ed, we’re pleased to be able to offer a selection of different financing options for our customers, so they can pay in a way that suits them. And we haven’t seen any material changes in terms of that part of the business. It’s an important part of how some of our customers pay for their orders and we’re glad to be able to offer a range of different options.
Edward Yruma : Great. And then just maybe one other follow-up. What kind of finance penetration are you seeing on fine jewelry? I understand that it has a lower ASP. Does the consumer normally pay that themselves? Or is that something that they’re financing as well? Thank you.
Jeff Kuo: We haven’t broken out the finance penetration by different types of products. I would say, just related to my previous response and say, overall, we — important for us to be able to offer a variety of choices for customers to be able to pay for their orders and we see financing as well as other payment options to continue to be an important part of the mix.
Edward Yruma : Thanks so much. Happy holidays. Thanks.
Operator: Thank you. And one moment as we move on to our next question. And our next question is a follow-up question from Oliver Chen with TD Cowen. Your line is open. Please go ahead.
Oliver Chen: Thanks a lot, Beth and Jeff. Just a question on the longer-term growth algorithm. In earlier innings, it was in the low-20s, just what are your thoughts on that resuming and/or the catalyst or the pieces to reaccelerate likely it has a lot to do with like the structural trends you’re seeing in the market. And then as you quoted mid-single-digit revenue growth and looking forward to that, how does that roughly break out? Were you speaking more to a number of transactions and volume? Thanks a lot.
Beth Gerstein: I can maybe kick that off. As it relates to long-term growth algorithm, we still have a lot of confidence in the overall long-term growth aspects and that’s part of the reason that we’ve been leaning in and really gaining share even as others have been pulling back. So really, as we think about the bridal industry normalizing, you’ll start to see that acceleration just based on the gains that we’ve had to date and the fact that we’ve been so successful in terms of growing our overall brand awareness. Jeff, do you want to expand on that?
