Daniella Turenshine: So, our guidance assumes that we continue to maintain discipline around our promotional events. As you know, we don’t typically do kind of like-for-like events every quarter. And we think that’s really important to ensure that our customer isn’t waiting for the next event. And we also just have more flexibility as a B2C-only company to be really nimble in our strategies and adjust based on our inventory position, based on the volume, based on what we are seeing in the customer kind of spend. So, we are always going to focus first and foremost on protecting our brand, but we also recognize that customers have been leaning into promotions during this difficult time. So, we are going to plan to respond accordingly depending on the environment.
Rick Patel: Thanks very much.
Operator: Our next question is from Bob Drbul with Guggenheim. Your line is now open.
Unidentified Analyst: Hi, good evening. This is Erinn Murphy [ph] for Bob Drbul. I wanted to follow-up on Adrienne’s question about the community hubs. Can you quantify any meaningful digital halo effects or any uptick in the area that you are implying, because I am pretty sure the area is very heavy on healthcare community, so I just wanted to understand what was behind the location? And also, I wanted to ask about the competition. Any updates on the competitive environment, the promotions driven by new players or promotions solely by macro? Thank you.
Trina Spear: Sure. So, as it relates to our community hub in Century City, it’s really central, it’s central to healthcare clinics that are actually located in Century City Mall like One Medical, like Kindbody and others. And there is also a number of hospitals within a few miles of from Century City Mall. So, we did a lot of analysis around. And as you know, as a B2C company, we have so much data around our customers and where they live and where they work. And so, utilizing that to figure out where to put our community hub, and that will be our strategy going forward to – that will help us decide where to go next and where to put our store. So – and to your point, I think the digital halo is really important. Stores in many ways are profitable billboards, and they are able to drive our digital business as well.
You try on your uniform in the store, you figure out your size, and then you can kind of shop the next time online after understanding that. And so there is a lot of benefits. Other retailers have seen AOVs much higher than what they see online. There is also a lot of different metrics out there around other retailers and what they see as it relates to omnichannel, I mean how the repeat effect of having an omnichannel business across both online and offline. So, we look to see that over time as well. As it relates to the competitive landscape, we really haven’t seen much change since we talked about this last time. From our perspective, we are adding new customers at a record rate. We are continuing to widen the moat between us and everybody else.
The next closest competitor continues to be about one-tenth our size. And how are we widening the moat. We are doing it with new product innovation, elevated quality. We are engaging our customers. We are advocating for them. And so, we do remain the leader in the space and we are going to continue to invest in widening the moat between us and everybody else. And during this – given this environment, I think a lot of companies are pulling back, and they are standing still. And what we are doing is given we have $232 million of cash, we have no debt, we are generating cash, we are making investments, really smart investments. So, that over time we are widening that moat between us and everybody else and continuing to show up in the most authentic – in the most meaningful way and purpose-driven way for our community.
Unidentified Analyst: Awesome. Thank you. Good luck.
Daniella Turenshine: Thank you.
Operator: Our next question is from Matt Koranda with ROTH MKM. Your line is now open.
Matt Koranda: Hey, everybody. Thanks for taking the questions. Just on the new customer ads in the quarter, just any specific breakdown of how many came from the international versus sort of the core domestic market. And then on the new cohorts that you have been acquiring, any notable differences there versus your core consumer just in terms of product mix, full price versus off price, propensity AOVs, etcetera?
Daniella Turenshine: So, looking at our new customer ads, international, we are really pleased with the growth that we saw in the quarter. But it’s also great to see that domestic is continuing to add more new customers year-over-year. And I think that really just speaks to the opportunity that we have within the U.S. to continue to penetrate and grow our brand awareness. So, we continue to see a healthy mix between the two. We are not seeing a lot of difference in the new customers that we are adding today. We are seeing similar occupations. Obviously, we have spoken about some of what we have seen on the spending patterns in terms of higher AOV, offset by lower frequency. We are seeing that across the board on our new customers and our repeat. Otherwise, yes, they look pretty similar to the customers that we have been acquiring.
Matt Koranda: Okay. Great. And then just on the store strategy, I think it’s been asked in different ways, but I just wanted to put a finer point on the question. Are stores in your view at this point a growth driver with sort of four-wall ROI metrics that you would expect to sort of achieve, or are these kind of more of a brand beacon? How should we be thinking about sort of the store strategy? And I know, obviously, with the understanding that it’s early, just given that we had the first one, but just wanted to ask specifically on that.
Trina Spear: Yes. I mean community hubs retail is definitely a growth driver with four-wall EBITDA profitability. But it will also be a brand identifier. We look to be an institution within cities across the United States. And I also think that what we are doing in person with our community is going to unlock a lot of what we are doing digitally. And I think there is a lot of synergies between what we are doing within our community hubs and that’s why we are calling them community hubs. And it’s not just about that transaction, it’s about much more, it’s about that connection. It’s about having events and programming that aligns with what our community cares about. And that alignment, in that, we have this diehard fanatical community.
And every time we show up in person, whether it’s our pop-up shop, whether it’s our activations, whether it’s our mobile experiences, they want more of us. They are in five-hour lines waiting for FIGS. And so this is only going to continue to drive the business and not just what we are doing with our community hubs. It’s also going to drive teams as teams are going to walk in that door and say, hey, how do I get FIGS for my team. It’s going to drive what we do with digital. And then you shop online, you return in the store, etcetera. There is a lot of dynamics there that are going to be really beneficial over time. And so we are really excited to see how we continue to roll this out and we are really excited to see how our community continues to engage with us in person.
Operator: Our next question is from Brian Nagel with Oppenheimer. Your line is now open.
William Dossett: Hi. This is William Dossett on for Brian Nagel. Good afternoon and nice quarter.
Trina Spear: Thank you.
