Dave Powers: Yeah, I think you know, what you’re looking at a little bit is some of those launches in Q4 had to ship in Q3 to be in the marketplace that, you know, in time and no. And then also, I talked about the Solimar. And also the new transit that just launched today, those are small buys and small volume drivers in a first introduction, so heavily weighted on DTC, you know, wholesalers, you know, want to see performance in your own channels before they invest heavily. So, yes, they’re exciting. Yes, they’re new. Yes, they’ll steal some market share from competitors. But the scale of those on the business at this point are still small. And then some of that inventory has also shipped in Q3, which is why you see the 90% increase.
Sam Poser: Got you. And then on UGG given the guidance, I would assume you know that you’re going to have a big swing on wholesale in the fourth quarter, which is really about the big increase that happened in Q1 €“ sorry in Q4 last year. But can you just and since it is not you know on a relative basis, it’s your second smallest quarter. Can you give us some direction on how to think about the wholesale for €“ in the fourth quarter? I mean, does it have a negative €“ is it a negative 20 handle negative 30 handle negative? You know, give us something there that can, because it sounds like the wholesale is going to be down much more than the DTC though the DTC is probably going to be down a bit.
Dave Powers: Yeah, I mean, I think DTC, you know, there was exceptional results in DTC in Q3, you know, as we said, some of those you know really hot styles have sold out and we are selling fumes, the golden stars with a new introduction in Q4 that is already selling out. So there’s hot demand for some of these styles. But as we’ve been managing our inventory levels, we didn’t buy as heavily into some of these new styles yet, not anticipating that kind of sell through. On the wholesale side, you know, yeah, they still have inventory leftover from what they purchased throughout the year. More than kind of the core classics, they’re still struggling with the hot new styles, you know just like we are in DTC, what you’re going to see it down, you know, in the 20%, 30% range for the quarter.
But again, if you look at the market sell through and the health of the brand in the marketplace, that’s what we’re focused on and you know it’s tough. I understand you’re trying to model quarters, but it’s a funky dynamic wonky as one person already said, and but I think we got to go back to like, what is the health of this brand and how are things selling through?
Steve Fasching: Well, again, I mean, the UGG costs of being down in Q4, you have so much that shifted from Q3 to Q4 last year, and you brought more of it in Q3 this year. And so that’s not really €“ that’s a different scenario than health. That’s not expected. It’s just more a matter of trying to triangulate where it is.
Dave Powers: Yeah €“
Steve Fasching: Thank you.
Dave Powers: Yeah, absolutely.
Operator: And our final question today will come from Chris Nardone with Bank of America Merrill Lynch. Please go ahead.
Chris Nardone: Hey, guys, good afternoon. Can you talk a little bit about what you’re seeing on the ground in China for both your UGG and HOKA businesses? And if you can elaborate maybe on your specific expansion strategy for HOKA, and then if there’s any way to quantify, you know, the potential build back, you can see in the UGG business, given the lockdowns over the last, you know, two to three years? Thank you.
