Where we’re doing that, the customer is responding, particularly online – you mentioned the channels also. Our ecommerce business has escalated incredibly as the women’s business has rebounded, but it is being driven by promotion. What I would say, though, is that it’s being driven by strategic promotion on new product versus a year ago, where we were promoting red line and clearance very, very deeply, so it’s a different level of promotion and a different kind of promotion. But the consumer response to the new product and the value in the new product on promotion is really, really powerful.
Jason Judd: Then just diving into the second half of your question on freight, the underlying SG&A, the impact of the promotions that Tim talked to, and then interest expense, obviously also there, there’s a lot, but want to talk about the fact that freight is better overall. We’re seeing increased capacity in the retailers’ favor. Logistics is being loosened with agreements on the west coast coming to fruition. Underlying raw materials are showing less cost pressure than the same time last year. That all adds up to apples-to-apples pricing being in our favor year-over-year, so counterbalancing a lot of the promotional impact. In our gross margin guidance, we talk about the fact that there is in Q3 expectation of 200 basis points of decrease – that is after the royalty, and that’s after the positive benefit of bringing in Bonobos, so you can really talk about that 200 basis point impact really being driven by the promotional depth, is a good way to think about it.
I think it’s important to talk about the interest expense, especially in light of the new term loan that we announced this morning. Interest expense for Q3 is expected at around $6 million. Interest expense for the full year is expected around $20 million. When you think about next year, we’re not guiding yet to next year but you referenced it, there will be much less cash burn in the first half of the year in light of the cost reductions. Cost reductions of $80 million in this year are really back loaded into Q3 and Q4 – about two-thirds of that is back loaded into Q3 and Q4, so you’ll see the benefit come to realization in Q1 and Q2 of next year, and that definitely helps. There will be less net borrowing at that time, so that will just help frame of reference for models as we think about interest expense next year.
Tim Baxter: Did we get everything, Dana? I don’t know if we touched on everything. Dana, are you there?
Operator: Perhaps your line is on mute?
Tim Baxter: Looks like we lost Dana, so let’s move forward.
Operator: Perfect. Again, if you would like to ask a question, press star, one on your telephone keypad. Your next question comes from the line of Eric Beder of SCC Research. Your line is open.
Eric Beder: Good morning.
Tim Baxter: Good morning Eric.
Eric Beder: Morning. We’ve talked a lot about women’s, let’s talk about men’s. You’re now anniversarying a very strong period for suiting, kind of you getting back to normal. What should we [indiscernible] going forward as the role of suiting in men’s has the potential for it to be a growth driver? What do you see on the men’s side as the potential growth drivers for the rest of the year?
Tim Baxter: It’s a great question. We are anniversarying total men’s business at record high levels of both sales and margin from a year ago, and that was driven across categories but suits had outsized growth. Suits, just to level set, suits is still our largest business, even in its most challenged state right now, suits is our largest business. It’s a very, very powerful business for us. We offer extraordinary quality and value in suits, and so it will continue to be a very important part of our assortment in men’s. As you may remember, last year October was the largest wedding month, I think that we had seen in 30 years or some crazy number – I don’t remember it exactly. We saw the suit business accelerating pretty aggressively through the middle of October, and as we moved out of the month of October, we actually saw that performance leveling off as we moved into the fourth quarter.
