Jeremy Hamblin: Great. And then I wanted to also just understand, so through — it looks like you’ve seen some stability here in the store fleet, wanted to just confirm, as we make this progress back into a positive comp trends and some of the changes that you’ve made overall. First, wanted to understand whether or not you felt like there was any additional, like acceleration of store closures you had to do as we head into 2024 or if we kind of have just kind of some of the typical closures? One. And then part two would be just in terms of the balance sheet and how you would expect to utilize your credit line here in 2024, there’s kind of a natural ebb and flow related to balance sheet and inventory needs as we progress through the year?
So, you’ve already made some really nice paydowns on that debt line here in Q4, but I wanted to just understand what you thought you might need for your kind of peak use of that credit line into 2024? And presumably similar timing where that maxes out in Q3?
Mike Madden: Yes. Jeremy, I’ll start with the store question. I think the way to think about store fleet right now is we are maintaining. There are going to be a few closings in January. I would expect to see eight or nine closings in January, but I would consider that typical housekeeping and dealing with rent or lease expirations and renewals. So, you’ll see that. But largely, we are looking at this as let’s improve our position as well as we can in each location and let’s consider each location a show play for us that that really drives business to those stores, but also in an omnichannel way. So, those stores are really important for the ecommerce side of the business as well. So, we are maintaining. We would like to get to a point, and that kind of leads into your second question about the liquidity and the balance sheet.
We certainly want to build our liquidity position such that we can play a little more offense than we’re playing right now. And that’s why I cited that in the prepared remarks. I mean, we feel comfortable with our credit line and the way that works and flexes up with our build to peak. But in order for us to be really more offensive in terms of what we’re trying to do to speed the turnaround and invest wisely in things that we know will work for us, we need that flexibility. And that’s why we’re just kind of taking a look at everything. We don’t have anything to talk about yet, but we’re considering how we might bolster that position throughout 2024.
Ann Joyce: And this is Ann. In addition to that, I would say, as Amy mentioned earlier about the strategy around igniting the field, it includes physically visiting every single store and understanding what are the triggers to the performance, which is not just location and demographic, but allocation and localization of product, et cetera. And anything that can affect the performance in a positive way, we’re taking action on in parallel to their real estate strategy conversation, I mean, the points that Mike just made.
Jeremy Hamblin: Got it. Thanks for the color. Congratulations and wishing you the best on a great holiday season.
Mike Madden: Thanks Jeremy.
Ann Joyce: Thank you.
Operator: And our next question comes from John Lawrence from Benchmark. Please go ahead with your question.
John Lawrence: Good morning.
Mike Madden: Hey John.
John Lawrence: Congratulations on the numbers. I mean certainly we’ve seen tremendous change in the stores that we visited and certainly have seen that traffic and resonate across the board. So, congratulations from that standpoint. Can you either Ann or Amy either one just sort of describe a little bit when you laid out the assortment, you mentioned a little bit about it in the prepared remarks, but what — if you look at that balance of harvest and in the second quarter, you talked about a little bit of sort of that improvement and as you moved into the third quarter, what would maybe be a couple of categories that maybe surprised you or disappointed with you as you just looked, obviously, it all looks very positive. Just trying to dial into some of those categories that may have either work better or worse than you expected?
Amy Sullivan: Sure. So, specific to Q3, I mean, as we mentioned, the Decorative Accessories category really is a standout. And for us, that bases, basket sort of all of the décor accent pieces throughout the customer’s home. And over the years of growing furniture, that is one of the categories that historically had been kind of our best value category. And I think the pricing, along with furniture got too high for our customers. So, we really turned that one completely upside down, got back into sort of basics and high-value, high-unit velocity items and saw a ton of success there. You’ve heard me mention a couple of times the impact and the importance of the seasonal business for us here. And I would say one kind of is a tale of two stories.
If you think about Q3, Halloween had just a runaway success, probably the fastest and earliest season demand that we have seen for that business in my time here. And then harvest, I would say, was a little bit disappointing. Some of that, we pulled some of those sales forward into Q2. So, there was a little bit of a pull forward there. But because of the stakes that we were in, in Q3 are still dialing in our marketing strategy still being in the mix of sort of, old product strategy and new product strategy. We had to leverage harvest as a little bit of a loss leader to drive traffic and demand. And so we eroded that AUR more than I would have liked to. And then the last thing I would say is just again on those higher-ticket categories, as I mentioned on Jeremy’s question as well, furniture, I feel really good about the direction that, that’s heading and getting back into true value furniture for our customer.
