The newness, I think is right on. We have some areas that have not performed as planned yet, but we think that — and this is primarily on the cold part of the assortment, sweaters, outerwear, which we think is the collection this year is phenomenon. But we — in this case we think that the weather being a lot warmer than what you would expect for the time of the year is impacting or has impacted our sell out. And we feel that it’s just a matter of the temperatures to change a little bit for us to start experiencing acceleration in those sales as well. And then with respect to inventory turns, just we are carrying more inventory than we think we can carry for the business. This has been absolutely done intentionally. We order inventory earlier to mitigate the supply chain issues that we were experiencing.
And as a result of that we are carrying some extra inventory. But when you look at our turnover, if you exclude that excess that we plan to remove from our core business for next year and we are working on that pretty actively, we think that inventory turns are pretty much in line with what we would expect. And that should happen like that because we are buying and we are ordering based on what we expect the customer demand. It’s going to be for price selling, not just we are not planning to buy additional product to sell on a promotional level. So overall, it’s system and the process that we are using is accomplishing what we expect. And your last — well, next to the last question was about sentiment. I think that the overall sentiment for what we are seeing just as definitely there is a lot of inventory in the marketplace.
And I think as the customer is looking for price, but just we feel that we are very fortunate because we have a product that is very unique for the marketplace. And as a result, we can command a price that is representative of our ticket price. The promotional environment we think is very active, primarily driven by what we see in terms of inventory ownership. And we are trying to stay our course with our strategy. And so far this is working differently. As you saw, our margins did work impacted by the promotional activity in the third quarter and we are expecting that the same thing is going to happen in the fourth quarter within our outlook but we feel that we can continue to drive margins that are significantly better than what we had pre-COVID.
So everything that we have done to transform the business model and pricing and how we are pricing goods and how we are selling those goods more at foot price is working for us.
Corey Tarlowe: That is great. Okay. Great. Thank you very helpful. Thanks so much. Best of luck.
Operator: Thank you. And our next question comes from Dana Telsey from Telsey Advisory Group. Your line is now open.
Dana Telsey: Hi, Carlos and Dennis. Can you talk a little bit about unpack the — obviously, we have the currency impact in one bucket. As you think about cotton prices and supply chain, how does that flow into the operating margin and the outlook as we frame 2023? And what does this mean in terms of AUR? Thank you.
