Farooq Kathwari: It’s approximately, let me just see. Matt, do you have that information?
Matt McNulty: Inventory is down 11% from last year.
Farooq Kathwari: Yeah. No. He says inventory is down.
Matt McNulty: I think, down, it would be more down on the wholesale side versus the retail side. As Mr. Kathwari pointed out, we do have new product that’s coming out on the floor of our design centers. So the retail inventory was a little bit higher compared to a year ago versus the big — the bigger decrease with that wholesale.
Farooq Kathwari: Yeah. About 11% or so down, Budd.
Budd Bugatch: Okay. Thank you and good luck for the balance of this year and on to next.
Farooq Kathwari: Thanks. Thanks, Budd.
Operator: Our next question comes from the line of Cristina Fernandez with Telsey Advisory Group. Please proceed with your question.
Farooq Kathwari: Hello, Cristina.
Cristina Fernandez: Hi. Hi. Good afternoon, Farooq and Matt. I wanted to ask about the SG&A expenses in the quarter. I know they declined 13%, but obviously significant deleverage on the sales decline. So, what — I guess what I wanted to know, was there anything one-time or related to the store refreshes in the initiative that was incremental this quarter in, it’s the 12% operating margin like a new level that we should think about the next couple of quarters given the macro and the refreshes in the stores or can it get back to a little bit higher level like what you have seen in the past couple of quarters?
Farooq Kathwari: It’s a good question, Cristina that at this stage, it’s very hard to say, because the good news is that, we are operating much more efficiently both at the manufacturing level and at the retail level. At — when I talked about the decrease in our associates, it has taken place in all levels, and especially, with the use of technology. It’s amazing how the technology has helped us, especially at retail where our interior designers today are about 30% less than what we had just a few years back, writing more business because of the combination of technology and their personal self. And of course, this was also a tremendously important in the COVID where many, many people who are working with them from their homes. So, I think that from our perspective, it is more or less, I would say, consistent between the two major areas of our business, wholesale and retail.
Cristina Fernandez: Maybe ask another way, is there room to cut expenses more or is that kind of $80 million you saw this quarter sort of like a slow, if you can go on the expense side?
Farooq Kathwari: Well, it’s a good question, because when we went from $92 million that we had in the previous year quarter to $80 million, that’s a pretty major decline in from a year-to-year. So I think that we always keep on taking a look at what needs to be done, but there’s always a possibility. We are always looking at the opportunities. And again as I said, the combination of technology and personal service in our manufacturing, in our retail, in our logistics is tremendously important. So there is a possibility, but I think we have cut down it quite a bit.
Cristina Fernandez: Okay. And then I wanted to see if you can share more color on the demand side. What you are seeing from your — from the design centers that feedback you are getting. It seems like the consumer took another step down this quarter. Maybe any more color on the behavior you are seeing, how is it changing relative two months, three months, four months ago or earlier this year?
