Mitchel Kummetz: I’ve got kind of a separate one for you, Tom. On the $40 million in cost savings, it sounds like $20 million of that is being realized this year. Can you maybe just kind of walk us through the phasing of that by quarter? Have we already started to see some of that in the first half or the second quarter? And how does that kind of play out over the next couple of quarters? And that’s it for me.
Thomas George: So answer to the first question. The projected Journeys store count is 1,057 at the end of the year.
Mitchel Kummetz: Okay. Thank you.
Thomas George: And then — on the cost savings. Yes. In terms of cost savings, Mitch, most of the costs will still be in the fourth quarter. There will be some, some in the third quarter, but most of it is still driven in the fourth quarter. And we’re still confident — still feel confident about what we’re doing from that perspective. In addition to — we did — as we talked about, we are — have a lot of initiatives in place relative to selling salaries, and we’re losing a lot fewer hours relative to the prior year in selling salaries. At the same time, some of the traction we’re getting in terms of reducing those salaries is not what we originally expected, but we’ll continue to work on that. We still — we also still continue to yield some selling salary savings.
We also still have some good initiatives in place outside of selling salaries or we’ll continue to double down on our occupancy cost going forward. We’ve got some initiatives in the branded group as well in terms of what we can do to reduce our expenses there. And we also have some procurement initiatives in place relative to outside spend that will continue to work on that. And then we’ve also have some good visibility and line of sight on what additional cost savings we’ll look for next year as well. Pretty similar categories for next year as well. So good line of sight on that, good confidence that we’ll achieve that again to the original question. There’s more of it in the fourth quarter. I think another thing just to point out in the fourth quarter that in this year, the Journey’s fourth quarter or expenses absorbed a 53rd week of expenses as well.
So when you adjust for that and you adjust for a full year of the OpEx impact for store closings in the next year, you really start seeing the opportunity we have here with a reset cost base and you start thinking about sort of modest expectations for the other parts of the business from a sales growth and a margin perspective relative to the success we’ve seen there. So modest expectations on the other divisions. Even a modest comp improvement with Journeys going forward into next year. And with what we’ve done over the last 12 months, we bought back 13% our share. As you can see, a lot of earnings per share leverage next year.
Operator: This does conclude the question-and-answer session. I would like to hand it back to management for closing comments.
Mimi Vaughn: Thank you for joining us today. We look forward to talking to you on our next quarterly call.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.
