Michelle Gass: Hey, Oliver. Good to hear your voice. Michelle here. So I’ll take the first part of the question on capabilities and then I’ll hand it over to Harmit on fill rate. So, yes, like I said, I’m super excited about the opportunities we have, I’d say both, well, all of the opportunities we have, whether that’s growing our international business, it’s DTC, and then, of course, category expansion and we’re building capability across all fronts, candidly. I think related to I’d put DTC together with the lifestyle category piece in that, in both cases, to operate like a vertical retailer, you need speed and agility. And we talk about more broadly making this pivot, it’s operational and it’s cultural. It’s how we use data to drive real-time decisions.
Capability-wise, I’ll go on two fronts, one is it relates to products which I think was largely around your question. It’s really end-to-end. So we start with our go-to-market timeline. It’s too long today. It was built over years highly successful, but was built to serve a US wholesale bottoms business, that can move a lot slower than if you’re a direct-to-consumer global denim lifestyle business. And there should be multiple tracks of timelines across different products. For example, as you know, tops and especially fashion tops operate on a much faster timeline than say your core 501 denim bottoms. Not saying we’re going to become fast fashion, that we’re not going to, but getting inside of a 12-month timeline is imperative for us to both drive relevance in these categories and then make sure we get the kind of turns that we need in a DTC business.
So there is a lots of teams working on kind of unpacking and refining what this new go-to-market process will be and there has already been a lot of great progress. Secondly, as it relates to capability, it’s design, it’s product development, it’s our vendor base. Again, I’d say over my time here, there has already been tremendous progress. We have deep capabilities today in design and product development. We’re supplementing that. We’re bringing in new talent across these fronts. And I’ve been really excited to see, again in my short time, how we’ve expanded our vendor base, to bring in vendors who have key capabilities and expertise in areas like tops or dresses et cetera. And then to your point, from an end-to-end supply chain, when you’re in direct-to-consumer whether that’s your stores or in e-comm, you want to be able to have the flexibility to chase into things that are working really well or pull back if they’re not and so that’s in the supply chain side of things, but it’s literally like on the floor.
So, the last thing I’d say is, really excited about the capabilities we’re building to run a retail organization. So, what’s happening with our stores, our people, training, really putting the stores and our e-comm channel at the center and giving our stores the empowerment to run their business. So a lot to do. I think there’s a lot of good progress already underway. And then, Harmit, over to you on —
Harmit Singh: Yes. On fill rates. Oliver, let me just start by saying, you know, we really have a lot of great people, a lot of good talent running our DCs around the world and a shout-out to them. It’s been tough, largely because we had more inventory. We really have been working collectively as a team to try and decongest that — our DCs, so that we could start servicing our customers and our stores. And so as — and that sequentially improved as we exited quarter three. It’s got a lot better in September and our view is that by the end of — end of quarter four, this issue is behind us from that perspective. We are also — a couple of things, we have opened a new DC, the digital DC in the East Coast and that is a service our e-commerce platform.
