Tom Kingsbury: Yeah, I just want to piggyback on what Jill said. We are coming out on holiday very aggressively in terms of promotions. Obviously, it’s really important time. It’s important time to gain market share and we’re working really hard on it. We did eliminate a lot of layered events in the first three quarters of the year. This year, we’re keeping it primarily intact in terms of our promotional efforts overall. So, we’re well positioned. I talked about in the prepared remarks in terms of everything we’re doing for holiday, not only in promotions, but also in gifting and impulse and Sephora, et cetera. So, we’re working really hard to do well in the fourth quarter overall. So, as far as apparel and footwear goes, Oliver, I would say in apparel, in Men’s and Ladies, you’ll continue to see more and more polished casual.
It’s doing very well. In Ladies, you’ll see a much bigger presence of dresses, starting really in the month of March, moving through the spring season. It’s a category that we’ve always been underdeveloped in, so we’re really making a conscious effort to grow that business. But it’s beyond dresses. We really feel important to drive the jacket business et cetera. Continue to get the balance right between the casual piece and the dress up piece, but we’ve made a lot of progress. I feel good what the team has done so far. We just need to obviously continue to push on that. In Men’s, we’ve done well with tailored separates and dress shirts, and we see that continuing as well. Also we feel that not only in Men’s and Ladies, we feel that the polished casual is going to be important in the Children’s business as well.
You’ll see a much stronger Easter dress presentation, boy’s suiting presentation, et cetera. And one thing to connect the Sephora business with is my example in my prepared remarks about the Junior business. We’re — we know that customer wants trends. Historically, we’ve gone out and used our proprietary and private brands to go out and buy goods in Juniors. And what happened was, we didn’t have enough knowledge about what was going to work. And so, we would go out and we would buy a lot of goods and it would come in 12, 14 months later, and it didn’t perform very well. Now we’re going to be using the marketplace, so that we can react to the business quickly, getting into trends, and we know there’s a connection between the trend product and the Sephora customers.
So again, I mentioned in the prepared remarks, but something we’re really working on. As far as footwear goes, we still need to work on footwear, to be honest with you. We do have a good — we do have a pretty good position in the active footwear business, but we really need to broaden our assortment. We need more — both Men’s and Ladies, we need more dress shoes overall and more casual shoes. We need a broader assortment of shoes for our customers overall.
Oliver Chen: Thanks. Happy holidays. Best regards.
Tom Kingsbury: Thank you.
Operator: Our next question comes from Gabby Carbone with Deutsche Bank. Please go ahead.
Gabby Carbone: Good morning. Thanks for taking my question. So, with gross margins up versus 2019 this year, I was wondering if you can dig into the structural gross margin opportunities you have kind of moving ahead and where you kind of see the biggest buckets still?
Jill Timm: I think — good morning, Gabby. I would say our biggest thing is we continue to work on our promotional and simplified value, which has been a key contributor. But we’ve done that in a pretty thoughtful pace and approach, and we continue to look at how we can use targeted offers. Clearly, our key value items and using pricing more strategically will all be key contributors. Second, and probably I should have said this first, is inventory management. Our big passion around inventory, obviously, with inventory being down 13% really focusing on increasing our turns is going to be a key contributor to that as well. So I think, we have a goal of getting to 4-plus turns at this point, and right now we’re sub that. So, we have a big opportunity to really make our inventory work harder for us in that perspective as well.
And if you compare to 2019, although freight has been a tailwind for us this year, it still is ahead of 2019 level, so we’ll continue to monitor that and take advantage of the freight benefits that we’re seeing in the marketplace and see that as hopefully continuing into 2024 as well and getting back to those 2019 levels. So, I think those are the three biggest contributors: inventory management, our simplified pricing, and then obviously continuing to look at the market for freight.
Gabby Carbone: Got it. Then, I just have a quick follow-up. On the digital business, I was wondering when you expect trends to maybe normalize there, and what kind of initiatives you have in place to help drive growth.
