Morris Goldfarb: Macy’s, we can only guess. We’re — as Macy’s has said, the door count is projected to be fairly aggressive. But the dollar value on the door count is approximately 10% of their sales. And there’s nothing that says we can’t further penetrate the remaining good doors. We’re looking at a possibility of 5% to 10% dilution should the door count decrease. But that’s over time. I don’t believe they will shut 150 doors within this fiscal year, and they’re projecting smaller door growth. The smaller doors are projected to grow, and I believe we’ll play an important role in that as well. Our brands are important to Macy’s. We represent a significant share of Macy’s Fashion business, not just for the brands, for who we are and how we accommodate the needs of Macy’s. We understand it better than anybody in the world. I’d be very fast to say we understand the Macy’s business. Cooperation is great, and it’s not a major concern for us. So…
Janet Kloppenburg: One more question, if I could squeeze it in. On the contrary, the off price retailers are doing very well, seem to be taking market share, and I wondered how you viewed your opportunity there as we move through ’24 and ’25? Thank you.
Morris Goldfarb: We respect the off price channel. We are very important to them as they are to us. We choose the brands — we collectively choose the brands that are appropriate for them. And we look to protect our brands to — in distribution. Yet, we know the significance of the off price channel. We know its growth potential. We’ve seen it, we’ve been part of it. And we do products specific for them as well as they help us when needed in moving product. They’ve been an essential piece of our business. We don’t underplay it. We’re not embarrassed by it. It’s the enabler for department stores to get service the way they do by us. So, we like the off price business.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Paul Kearney with Barclays. Your line is now open.
Paul Kearney: Good morning. Thanks for taking my question. As the licenses come off and with the need to grow the owned business for the next 50 years, can you talk about some of the initiatives the company has to improve the capabilities on owned brands, whether it’s operational changes, building a digital platform, bringing in retail expertise, or investing in marketing capabilities? Thanks.
Morris Goldfarb: Well, two things. It’s not written that we have to grow. It’s written that we have to be profitable and more profitable, so we can run a smaller business with significantly better margins and accommodate the profitability concern that we have as paramount. So, it’s not — we’re no longer going to be a top-line driven company as the key focus. The key focus is going to be profitability. The tools that we need, we have. We don’t need any more tools. We have the best talent in the industry and maybe in the world operating in our company. Most of those people will be transitioned from Tommy, Calvin into our owned brands, which is absolutely wonderful. We don’t have to go out to the market, hire people, train them and integrate them into the G-III culture.
They’re here. They are G-III. And there’s an entire team here that carries the flag of G-III, not the individual brands. So, we’re working on enhancing our data platforms. Technology is key. We’re going to optimize our logistics capabilities. We have some weaknesses that we’re shoring up, and that’s part of the expense of this year. And we’re investing in Europe. We’re investing in space and in talent. And again, there’ll be a media spend, that’ll be targeted towards Europe in the coming months. We’ve got it — I think we have it all. It’s not a start-up company. It’s not a company that is going from base zero, projecting out what you’re seeing. We’re there. We don’t need anything and we have the capital to sustain it and support it. Paul, thank you for your question.
Paul Kearney: Thank you.
Operator: Thank you. Our final question will come from the line of Rob Rosenhaus with the Telsey Group. Your line is now open.
Robert Rosenhaus: Hey, guys. Thanks for taking our questions here at the end. We touched on the international business a couple of times here, but maybe can you dive a little bit deeper into the go forward opportunity abroad there, particularly with the increased focus on the owned brand penetration and maybe talk about what the profitability profile looks like versus the domestic business? And then, just secondly, one last question on M&A. Obviously, it has been a big part of the business in recent quarters and recent years. Is there anything of interest right now in the current environment? Or do you guys kind of see your hands full with what you have and the focus is just on the current portfolio for the time being? Thank you.
Morris Goldfarb: So, I guess, I’ll answer your last question first. Yes, there are opportunities that we like a lot in Europe. We have identified some. We’re working through it. We do our diligence, we do it carefully. And there’s a good bet that there’s an acquisition opportunity or an investment opportunity at hand. Hopefully, we get it accomplished soon. As far as our European initiatives, again, this is not new. Lagerfeld started out as a European company. We took on an equity stake for North America and eventually bought the entire company. So, the origins are European, the heritage is European, and the operating company really sits in Europe, and they kind of steer the ship. So, what hasn’t happened is, there’s never been a significant investment in the growth of the European business for Lagerfeld.
