I would tell you that in the rest of the year, we’re still planning to be managing inventory in that mid single digit range. In fact, we want to make sure we’re protecting ourselves in holiday. So I would say mid single digits, maybe a little bit better than that. Obviously, we’re going to react and chase appropriately given the demand that we’re seeing.
Blake Anderson: Thank you. Best of luck with the second half.
Jill Timm: Thank you.
Operator: Your next question comes from line of Chuck Grom from Gordon Haskett. Your line is open.
Charles Grom: Thanks. Good morning. Can you guys talk about the success you’re having in Sephora getting those shoppers to cross shop into other parts of the store. And I guess, over the past couple of years how that’s evolved?
Jill Timm: Sure. I think we talked about I think around 40%-ish of our customers to 50% are shopping around the store. So we continue to see that that’s an opportunity. I think, like I mentioned, the big opportunity is going to be around these white space pieces. It’s home decor, it’s impulse, it’s gifting. Those are easy adds to the basket. Particularly in home décor, you’re going to see that in a much better opening price point. And so it’s going to be easier for them to put into the basket. And then I think, the bigger opportunity and Tom has spent some time talking about that is really getting the woman to shop into the women’s pad. And I think we know we have some opportunities there in terms of brands and fashion, we’re working through that.
So I think we feel great that we’re in that 40% to 50% cross shop rate, but we think we can do more with that given the white space opportunities we’ve outlined as well as women’s and moving that into the right direction and getting her to shop across that pad.
Charles Grom: Okay. And is there any way to like think about how that 40% to 50% has evolved over the past couple of years. Has it continued to improve or has it been that way and just been stable?
Jill Timm: I think it’s been pretty stable in that range for — since we’ve opened up the stores. I’d say in some of the more mature stores, the customers coming in maybe more for a replenishment trip, so we don’t get as much in that basket. In the newer stores, they are excited just to see what Kohl’s has to bring because they’re a new customer. But I would say that has been a pretty stable range in totality, overall, but maybe the more age stores. I think hopefully when we introduce some of this newness, we’ll gain that excitement back.
Charles Grom: Okay. Great. And then another one for you Jill, just on the cadence and phasing of the back half of the year. Is there any way you can hold our hands on both the comp as well as the credit line? The comp on a one year basis is pretty similar, last year the cycle in 3Q and 4Q, but on a multi-year it’s a little bit more choppy. So if you can maybe help us on that would be helpful.
Jill Timm: Yeah. I think overall — let’s not talk about the 53rd week because obviously you get the 53rd week benefit in Q4. I think if you look at it on a — I did the two-year stack for you Chuck, because I know how much you like stacks. I think you’re going to see a pretty consistent two-year stack is what we’re really outlining X the 53rd week. You saw — if we looked at it, the two-year stack would’ve fallen a little bit in Q2 from Q1, but we did see that stack improve as the quarter went on. So I would say the exit rate was actually better than the two-year stack in Q1 and I’d expect to be around that level in Q3 and Q4 X the 53rd week, if that helps you.
Charles Grom: It does. Great. Thanks Jill. Appreciate it.
Jill Timm: Yep, of course.
Operator: And your last question for today comes from the line of Paul Lejuez from Citi. Your line is open.
Unidentified Analyst: Thanks. It’s Tracy filling in for Paul. I had two questions. The first is I was wondering what your AUR and traffic looked like in the second quarter and what you’re expecting for AUR in the second half. And then I was wondering if you could tell us what the overall comp were in stores that had Sephora locations opened in 2021 and 2022. Thanks.
Jill Timm: Yeah. I would tell you, Tracy, the components AUR has been a driver for us for some time. I think we’ve talked a lot about. We’ve seen AUR growth and that’s really going to be a function of the effect of the brands that we’re bringing in. Obviously, Sephora has a higher ticket, which you would expect, which is driving our AUR up. But then on top of that you think of Tommy Hilfiger, Eddie Bauer. We’re seeing our Nike and Under Armour businesses do well. So that all drives ticket. And I would say that’s been pretty consistent over the last probably four or five years that we’ve seen our AUR moving up. And I would say we’re going to expect that increase to consume, but I think more moderately now that we’re comping some of these brand introductions and obviously continuing to be focused more on value.
So we talked a little bit about our key value items, really focusing on driving the best, most competitive out the door price and focusing those in our private label, which we think could be really important to a customer in this uncertain and strained macroeconomic environment. So that’s really where I would say we continue to look and see. And in terms of Sephora, I think we just feel good. It’s up 20% as you can imagine. It’s definitely driving a benefit. Our stores were flat on the quarter. We’re up one on the season in our stores, so obviously it is driving much more productivity outta the box, which we’re very, very pleased with.
Unidentified Analyst: Thank you.
Jill Timm: Thanks.
End of Q&A:
Tom Kingsbury: Thank you to everyone listening on the call today.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
