Abbie Zvejnieks: Great. Thanks for taking my question. Jay, you talked a little bit about the consumer being more selective, buying the product that they want, and promotions not moving other inventory as much. One, are you seeing that same dynamic in both Men’s and Women’s versus Kids? And then two, are you changing your merchandising efforts at Famous Footwear in any capacity in order to meet some more of that key style demand?
Jay Schmidt: Yes, we are seeing it in both segments right now as the continue — the consumer continues to prioritize spend in different ways. We’ve said in Famous that the consumer continues to prioritize kids purchasing, so that has continued, and then, also, very much demanded on the styles and the items that they do like and the brands that they really favor, which fortunately we have. Over on the Brand Portfolio side, we’re seeing the same thing in terms of newness and trend delivering it. And so, I think what you’ll see is on our websites and our continued messaging and communications, we’re continuing to focus on new item launches, new styles and new drops. And we’re seeing that both in Men’s and Women’s. And then, over to Famous, one of the things we will be adding to all stores this year is, as we go into back-to-school, it’s really the focus on two trend tables as you walk into the stores to really call out these key messages so we can continue to make that impact.
And then, as we continue to build the FLAIR store concept, we’ll continue to bring that to its fullest extent. So, you’ll see a lot more from us on that, but for sure, it’s consumer reacting in both segments very specifically by style, by SKU. And then the last thing I’ll say is that our SPEED program really allows us to really meet that demand much better as we continue to bring in more product earlier, particularly online, and then get back into it exactly how the consumer is demanding. So, it’s been a very good approach for this timing right now.
Abbie Zvejnieks: Got it. That’s helpful. And just one more on — specifically on the Brand Portfolio. Restocking has been a big topic of conversation with brands with exposure to the wholesale channel. So, just in terms of Brand Portfolio’s wholesale exposure, have you seen any of that like “restocking” yet or is that something we should look for as a tailwind maybe 2025?
Jay Schmidt: I don’t think we’ve seen an effort on that. Retailers are continually monitoring their inventories well and they’re just reordering more and it’s less upfront but that’s something that we were used to and actually our model allows us to fill into. So, we haven’t seen the effect on that as of yet. But right now, I would say that’s where we are. And, yeah, I don’t see any change in that right now.
Abbie Zvejnieks: Got it. And sorry, just one more on dropship. Can you just talk about that business and how you’re utilizing it? Has that changed at all as the retailers have gotten into a better inventory position? Just anything there?
Jay Schmidt: Yeah, it continues to model in a very dynamic moment as we get more into position in stores, we’ll see some of that shift into other places where we do slightly more business in the stores and less of that dropship need. We are looking at our wholesale business really as a complete ecosystem. And so, we’re continuing to manage the total and in a really omni way. So, we’ll see variations of that, I think start to ebb and flow. And then again, as demanded items continue to be more built, the consumer will continue to find them in whatever way we choose to fulfill them. But right now, I don’t have any major swings on that to report.
Abbie Zvejnieks: Okay. Great. Thank you guys so much.
Jay Schmidt: Thanks.
Operator: Our next question is from Ashley Owens with KeyBanc Capital Markets. Please proceed.
Ashley Owens: Great, thank you. So, just on Famous, you mentioned Kids grew in the quarter. Could you just provide some color on the performance between athletic, casual, and dress? Just maybe where they start and stands today? And then secondly, just given the customer preference for newness right now, as you’re thinking about the cadence of product launches throughout the year within the Brand Portfolio, how does it compare to years prior? And then, would you say that you’re coming to market with more products, or would you say it’s better products that are kind of going to be helping driving [outgrowth] (ph) this year? Thanks.
Jay Schmidt: Okay. So, first on Famous, the Kids business is — we have about a 50% penetration in total athletic on our Famous business. That position skews much higher in Kids as they continue to focus on athletic shoes there. But we are also seeing a lot of our big brands work very well there. Just to name a few, we have Crocs business that’s continually strong in kids. Hey Dude business that’s turned out nicely. And then, Skechers, and then obviously Nike is the biggest one there. We’re also seeing newer brands like Birkenstock continue to go in, and then new offerings from brands like Adidas worked very well in Kids. So, anyway, I would say the brands that work very well at Famous continue to work totally, work very well in kids, but we do see a distortion on athletic.
