Jill Timm: Yes. I can definitely start on this one. Well, I’ll start with the consumer because you talked about it. We mentioned on the call in Q2 and now again, we’re seeing it as our lower income customers and higher income customers are growing. We’re really seeing that squeeze and who is our core customer, which is the middle income. And that continues into this quarter as well as we watch that customer move. So, we know value is important. We also thought Oliver and how they voted in the quarter. They’ve migrated both in Q2 and Q3 to our proprietary brands. So, they’ve outperformed national brands for the last two quarters, which is really the first time that we’ve seen that in a long time. So, we know value is definitely going to win this holiday season, and we need to lean into that.
We talked a lot about newness, but even in our Sephora shops, we know that we have an opportunity to elevate gifting. So we’ll be doing that. But we’re going to have gifts that even start at $35. So, really leaning into the fact that we’re bringing in a little bit lower income customer and how can we make sure that we’re fulfilling their needs across the store. In terms of the promotional intensity, I mean, I definitely think it’s going to be widespread. I don’t know if there’s any particular category that’s going to have more promotional intensity than others. I just want you to know that is a core fundamental of who Kohl’s is, and we’re prepared to compete this holiday.
Operator: Your next question is from the line of Omar Saad with Evercore Partners. Please go ahead.
Omar Saad: Jill, could you do a deeper dive on the inventory balance, how you feel about the positioning, especially kind of COVID winning categories versus kind of recovery and occasion-driven categories? Do you feel like you’re well positioned from an inventory standpoint as consumers return to some of their pre-pandemic shopping behaviors and categories they’re shopping in, or are you comfortable where you’re at? Thank you.
Jill Timm: Sure. I think from an inventory perspective, last year, as we called out, we were low on inventory. So, we really needed to build back. And I think the two big places that we’ve built back in first and foremost was women’s. So, if we go back over time, we took a transition in women’s. We did a lot of exiting out of underperforming brands and then we’re trying to bring back in that newness. And it was tough to do last year, given the supply chain disruption. So, we were definitely under-inventoried. I think we feel well positioned from an inventory perspective for women’s. We’re seeing that resonate with the customer, dresses specifically has been a new category for us, right? We haven’t always participated in it, but we know that dresses and dress casual are more important.
So, we funded into that inventory, and it’s definitely been performing for us. You’ll see even into the holiday period, we’re going to have more dresses really around that holiday occasional dressing as well. So, feel good and well positioned from that perspective. In home, we’re actually moving back into some of our electronics smart home, TVs, things that we haven’t necessarily participated in, but we know are big Black Friday deal drivers for people to come to the store. So I think the newness that they’re bringing in, in electronics is great. And then we’re also expanding our outdoor business. And so, you’re going to see things like tents and coolers and seating. So that’s really going to build off the strength that we’ve had over the past quarter.
