Operator: And our next question today is from the line of Linda Bolton Weiser of D.A. Davidson & Company. Please go ahead. Your line is open.
Linda Bolton Weiser: Yes, hello. Thank you. Welcome to Cynthia. So I have a question about the SG&A level guidance for second quarter that figure of 80 million to 85 million I think it still seems elevated versus the run rate kind of SG&A level prior to when you had the operational difficulties. So I’m wondering now you’ve made headcount reductions you’ve done streamlining et cetera. What is still elevating that level of SG&A?
Michael Lunsford: Yes. Well I’d say Linda thanks for the question. And so first on SG&A. One of the big differences you have to keep in mind from compared to the past few years is that we’re really growing that direct to consumer business which has the benefit of having a higher gross margin, but it also has more variable SG&A including marketing costs especially as we’re trying to grow and build brand new product lines like pop yourself and attracting those new customers to our website. So that’s one key difference. The other thing I’d say is that of course SG&A as a percent of sales in a quarter like Q1 where we had a lower content slate and so forth. And that’s obviously not where we want to be in the long run. As you kind of look at our guidance for Q2 and then think about the back half of the year as sales are going to ramp up sequentially? We’ll absolutely bring that SG&A as a percentage of sales down quite a bit.
Linda Bolton Weiser: Okay thank you. And then I’m just curious about on how things stand with the big national retailers. Are you kind of adjust? Is the status quo in terms of where you’re at now or are there going to be some initiatives to trying to gain shelf space? Or kind of what do you what are you thinking right now about that kind of whole channel?
Michael Lunsford: Well I think that Depop is the place right now where we’re making more inroads with mass and value than with any of our other products we’re seeing significant pickup by the two large brick and mortar mass retailers there and we’ll continue to see that. And the good news there is that that’s not in our usual shelf space that’s front-of-store that’s impulse. That’ll eventually be in toys we think. So that’s a big pickup for us in the long term.
Linda Bolton Weiser: Okay. And then I guess in terms of I don’t know Cynthia is she answering questions? If so I’d be curious to know what her initial first impressions are kind of about the company the culture we know and personnel like she filling — that there needs to be a Chief Operating Officer or is there anything she can say about both those CapEx?
Cynthia Williams: Hi, Linda. Nice to meet you. This is Cynthia. I have had most of my interaction at this point has been with the Board of Directors have had an initial social conversation with my executive leadership team. So I’ll be spending the first 30 days going really deep getting to know the people and the business. And then over the next 60 days focused on sort of any impacts we need to do to the strategy and the plan. And but my first impressions are incredibly positive.
Linda Bolton Weiser: And are you relocating to them to the Pacific Northwest?
Cynthia Williams: Actually I’ve been in the Pacific Northwest for about 17 years since I started at Amazon in 2007. And so fortunately I don’t even need to relocate now be in the Everett headquarters.
Linda Bolton Weiser: Wow, great. Sounds good. Thank you. Thank you. And we have no further questions in the queue at this time. So I’d like to hand back to the management team for any closing remarks.
Michael Lunsford: Thank you, operator. Thank you everyone for joining us on the call today. As always thanks to our fans, employees and partners for their support. This will be my last earnings call. Cynthia will be taking over and sharing our progress on our next call. I have enjoyed working with you, our analysts and investors and assure you I am leaving you in better hands than my own. Goodbye, everybody.
Operator: This concludes today’s call. Thank you all for joining and you may now disconnect your lines.
