Dennis Secor: Yes. Dana, I can help you with that. So the way we’re thinking about product margins for next year. And I’m talking about the full year for all the consolidated business, but generally we would see product margins to be up. The IMUs should have some tailwinds because as we said on the earlier part of the call, we’re seeing some relief on the freight costs. Currencies will consume some of that, but we’re seeing that those tailwinds as freight begins to — that pressure begins to be relieved. We also, if you recall, just we’ve talked about the markdown cadence and with an expectation that retailers are managing their inventories in a more disciplined way, then the environment will be less promotional. So we see that as an opportunity for a tailwind. And also the mix shift within our business should allow for some increase to the profit margins.
Carlos Alberini: And I’m just going to add from a business standpoint, our intention here is to continue to add quality and price the product based on the customers perceived value. This methodology, a new way of pricing, I think, has been very successful for us. We want to couple that strategy with buying not more than what we need. So then we can continue to sell and expect to sell a lot of what we make and put in front of the customers at full price. And I think as this format is working, we are investing in quality, we’re investing in sustainability and we think that the customer is absolutely responding well to the — not only the actions, but the messages that we have with the new product. And the one thing that is probably going to have an impact, but we are managing very well is, we made the strategic decision to really get closer to the markets where we distribute the products with our sourcing.
And we call this proximity and definitely in some cases that may have an impact on the ultimate costing that we incur. But we think it’s absolutely the right thing to do. We have incredible connections with some of these sourcing vendors and partners. And we believe that the quality that they deliver is at par or even better than some of the other parts of sourcing countries that you can find in the (ph). So we feel that this is strategic and we think that over time this type of sourcing will probably represent a bigger part of what it represents today. But we think that is absolutely the right thing to do to improve quality, improve control over our supply chain and timing.
Dana Telsey: Great. And just one quick last thing. How was denim performance in the quarter given you mentioned the percent of accessories?
Carlos Alberini: That’s interesting that you asked that question. Denim has been relatively challenging for us depending on the markets, just I’m talking about both North America and Europe. We have seen kind of like a significant challenges with the category, but we have changed the designs and styling pretty significantly, just it used to be that skinny denim was a big part of our business and now it’s a significantly less — lower part, smaller part. And we are seeing that the business is turning. So we are excited about the future here. We think that we have the right assortment and we feel that there is an opportunity for us, just we invested heavily in the dressy parts of our assortment during the last year and a half or so because we felt that the customer was looking for that to really socialize and go out and we were right at the time.
But as part of that, we did not invest as significantly in the casual parts of the assortment and we think that now the customer is going there. So we are ready for that. And I didn’t mention the region that is doing well with denim and that is Asia. We saw really good performance in the denim categories in Korea, even in China and Japan.
Dana Telsey: Thank you.
Carlos Alberini: Thank you, Dana.
