Rick Patel: Thanks very much.
Jeff Kuo: Thanks, Rick.
Operator: And our next question will come from the line of Michael Binetti from Credit Suisse. Your line is open.
Michael Binetti: Hey guys, thanks for all the details today. I’m not sure if I heard it, but you said this year gross margin is still in the mid-50s. Does the gross margin expand this year? That that line’s been very solid at 55% of the last two quarters. I’m curious if that expands this year as we look at the whole year and then even in the first quarter if it expands given there’s less mix headwind from the fine jewelry that you’ve pointed to a few times.
Jeff Kuo: Sure. So our gross margin for the year as a whole was 53%, a little north of 53%. And we are working towards the gross margins of that mid-50s and 50s range in our long-term algorithm. There are if you’re looking on an individual quarter basis, you expect there are some puts and takes and fluctuations, as we’re continually managing dynamically to optimize revenue and gross margins. So there’ll be some fluctuations on a quarter-over-quarter basis, but working towards for the year driving to towards that mid-50s goal for the overall gross margin for the year.
Michael Binetti: Okay. And then I guess just a couple more. Are you doing €“ I mean, when you comment that the demand under $10,000 price point has been high. Are you doing anything deliberate strategy wise into that dynamic the engage €“ to satisfy customers may be shifting to maybe a bit more of a value mindset. And then I guess separately as you scale here and your mind share in fine jewelries or could there ever be an opportunity to extend fine jewelry into a wholesale strategy?
Beth Gerstein: So what I would say is that I think we have a compelling product offering across a variety of price points and we really always have. And it’s important to us to work with the customer wherever their budget is. And so I think we’re naturally very well-positioned kind of as budgets are going to fluctuate to be able to offer something compelling to that customer. As it relates to wholesale, I think obviously we have a very strong brand. At this point, I think we have a lot €“ see a lot of opportunity in direct-to-consumer. But so it’s not something that we have any immediate plans to really amp up.
Michael Binetti: Okay. Thanks a lot, Beth.
Beth Gerstein: Sure.
Operator: And our next question will come to line of Dylan Carden from William Blair. Your line is open.
Dylan Carden: Thanks. Just trying to understand the commentary on the SG&A, this year you’re still going to see deleverage, it sounds like exiting the year as in 2024, you might start to leverage operating costs. But I guess, the sort of €œgrowth investments€, can you €“ I mean, it sounds labor, obviously store costs are in there. But €“ and then sort of the commentary on sort of being nimble yet and spending marketing dollars, I’m kind of curious where you’re actually seeing marketing efficiencies show up, just kind of looking at some of the numbers. What’s the biggest overhanging? Why is that run over the next year? And how quickly do you think you can start leveraging some of that investment kind of looking at where your margins were two, three years ago.
Beth Gerstein: Jeff, do you want to take that one?
Jeff Kuo: Sure. So I think, I’d like to walk through just how we’re thinking about the opportunity and our long-term perspective, I think we’re €“ we believe that there’s a lot of trajectory for us to continue to really grow and gain share over the long-term and making investments in things like growing awareness of the brand, expanding the showroom footprint, investments in fine jewelry. And we think that there’s the opportunity to do so in this environment. We have the financial strength and balance sheet to be able to make those investments while still keeping an eye towards being disciplined and focused, in terms of how we’re making those. We’ve always operated the company in an efficient fashion with ROI in mind. And as you point out, we are working towards driving to leverage on a year-over-year basis, exiting the year.