John Kernan: Thank you for taking my question I think my question and perhaps some of the progress you guys have talked earlier about priorities, because that works in short distance, and the context of that, how do we think about the DNA line and the selling line? It sounds like selling is going to have some pressure into next year’s investment fulfillment [indiscernible] how do we think about those two line items?
Trina Spear: Thank you, John. So looking at selling specifically, we are looking at 2023. We are lapping higher storage fees and driving leverage in the second half. As we expect to see storage expense sequentially decline in the third and fourth quarter. In the fourth quarter, we did speak to that that’s going to be more than offset by some of the initial investments that we’re making in our fulfillment project. As of right now, we expect those costs to be approximately 2 million in the quarter. We continue to expect that the fulfillment enhancement project to approximate 16 million to 18 million in totality with the bulk of those costs expecting to occur in 2024. And so we are expecting to continue to see pressure in that line item next year.
And overall, we’ve quantified about 250 basis points of pressure in selling in 2023 related to those transitory costs within fulfillment. But looking into 2025, when we’re past the implementation expenses, we will expect to see selling normalized. I think within G&A, as we discussed, we’re continuing to invest in our people. And I think, over the long term, we have a lot of opportunity to leverage G&A from here, but we want to make sure we’re making the smart investments to drive growth over the long term. And we’re going to utilize our strong balance sheet and our free cash flow generation to make sure that we’re making those right investments that are ultimately going to enable us to scale and grow.
Operator: Thank you. The next question will be from the line of Rick Patel Patel with Raymond James. Your line is now open.
Rick Patel: Thank you. Good afternoon, everyone. I’m hoping you can provide some color on new customer ads, just any insight on the contribution of U.S. versus overseas customers. And then second, on the team’s business, about missing a digit percent of revenue. I’m assuming that’s all scrubs, but hoping you can touch on the opportunity for non-scrubs within teams as well.
Trina Spear: So within the new customer acquisition, I think it’s really important to note that it was driven by both domestic and international. So we’re continuing to see a lot of growth in our international business. We spoke to the localization strategies that we’re doing in our existing markets that are helping to drive growth, but also opening new markets like Mexico, Saudi Arabia, and the Philippines, which has been a really bright spot in the second quarter. Domestically, we’re really focused on personalizing our messaging so that we’re matching the channel to the content to the end consumer, and we’ve seen a lot of success there.
Daniella Turenshine: And the second question, just non-scrubber within teams. I think for us, part of what we’re excited about in terms of upgrading our platform is to be able to widen our assortment to our teams and really let them purchase not only just our scrubs, but also our fleeces and our vests and our compression socks and our shoes and everything that we offer. So that’s really exciting. I think the other thing that is really exciting about teams is that even if you come to FIGS and you’re buying scrubs for everyone on staff, everyone within your clinic, everyone within your organization, we also give the individual the ability to come back to us and buy all the other elements of their uniform directly with us, even if it’s not part of the team’s account.
