George Bchara: Yes. And I would expand that, Kyle, to say that even into the third quarter, we’ve seen delinquencies remained stable, which is down a bit year-over-year. from a trend standpoint. I mean, I think as we’ve talked about, we’ve shifted our mix from a performance standpoint so that the bulk of our originations are to that higher credit quality risk Tier A and risk Tier B customer. And we’ve seen that customer remain more stable here this year from a performance standpoint and are encouraged with what we’re seeing there from both an origination standpoint and also from a performance standpoint, even as we’re operating in an uncertain and challenged macro environment. The further you go down that credit spectrum, the more stress we see with that consumer.
Kyle Joseph: Got it. That makes sense. And then, Norm, I think you alluded to some credit tightening in prime. Obviously, that’s going to be a headwind for you guys in the near term on some of those prime sales. But longer term, how does Conn’s do when the credit environment is tight? Or for instance, like if we do go into a hard landing, what do you expect — what are the opportunities there?
Norm Miller: Yes. What I would say is it actually — you’re right, if we go into a harder landing and it’s more challenging from an economic standpoint, that actually creates more opportunities from us from a sales standpoint. If you go back to 2008, you go back in other economic times, that actually creates sales opportunities for us. The balance we have to have is watching the portfolio because if there’s any stress, we feel during that it can be out of the existing portfolio and what happens with that consumer base. But if we’re underwriting to George’s point, at that higher end of it of those credit quality customers, and we’ve done that purposefully as we’ve gone into these uncertain economic times because if it does turn into a more challenging landing, we think the portfolio will weather better, and it will absolutely provide us sales opportunities as folks tighten higher up the credit spectrum.
Kyle Joseph: Great. And then one last one for me. Margins really snapped back in the quarter. Any onetime things there? Is this a good kind of run rate? And I know you highlighted that you expect some ongoing improvements there, but just give us a sense for the quick snapback and where you see it heading from here?
George Bchara: Yes. No onetime items in the quarter, Kyle. It was really driven by a number of factors that we talked about. First was some pricing and assortment changes that we’re starting to see the benefit of here in the third quarter that we would expect to continue, including some pricing changes on ancillary fees that we’re seeing the benefit of in the third quarter. And we would — in the second quarter, we would expect to continue here for the remainder of the year. And then as you look forward, really, we’re still seeing the benefit of now lower freight costs, impact margin on the furniture side, and there’s some additional upside for the balance of the year there. The other factor, as you look longer term here, we’re still dealing with deleveraging on fixed costs on lower sales this quarter.
And as sales continue to improve and ultimately turn positive, you’ll see another benefit from the leverage of fixed cost on margin. So we’re very pleased with where margin is right now and expect levels here to sustain for the remainder of the year.
Kyle Joseph: Got it. Thanks for taking my questions.
