Mark Vos: Yes. When reviewing the various customer household income segments and their purchasing behavior across multiple price tiers in our assortment, we actually did not see clear trading up or down between the segments. And the revenue contributions in each price tier across those household incomes remained stable compared to Q3 of 2022. So from that perspective, there were no specific shifts there. As I mentioned, our new customer acquisition compared to existing customers there, what we saw is that the new customers as a percent of our total active customers was slightly lower compared to Q3 2022. But over time, that is obviously expected when you see when we are successful in retaining customers. But from an absolute perspective, we did see that new customers compared to Q3 2022, were lagging compared to our existing customers.
And shifting a portion of our performance marketing expense into markdowns and discounts has certainly played a role into that. I hope that answers your question.
Amy Teske: Yes, thank you for the detail. I’ll pass it on.
Operator: [Operator Instructions]. The next question comes from the line of Janine Stichter with BTIG. Please proceed with your question.
Crystal Landsem: Hey, Janine.
Ethan Saghi: Hey, you got Ethan Saghi on for Jeanine. Thanks for taking our questions. First off, just on increasing newness and novelty to pre-pandemic levels, just curious how quickly we should expect that to take?
Crystal Landsem: I would expect it to evolve over the next several quarters, but we want to remain true to our test, learn and react model and we don’t want to overseeing in any direction. So I would say that could take a couple of quarters, if not two to three.
Ethan Saghi: Got it. Okay. And then next question — just going back to returns. I know you guys talked about the new return policies in place. Sounds like it’s good to hear the sequential improvement. I’m just curious how your customers are responding to those, if you could give any color there. Thanks.
Tiffany Smith: Sure, thanks for the question, Ethan. Yes, the returns continues to be a key area of focus for us. And frankly, it’s an area that we have accepted as a very integral part of the business model in e-com. Without physical stores, it’s really important to give our customer, the customer, the confidence that she needs to bring her purchases home to her at home fitting rooms. So we want to continue to maintain flexibility and all of our — subtle, I would say, return policy changes that we’ve made this year have maintained a free 10-day return period that our customer does leverage certainly. We’ve continued to improve some of the back of the house metrics or data insights around returns, adding some technology enablement as well for us to be able to learn more about our customers’ return behavior, also tackle some of the issues with customers who have a more excessive return rate, try to work with them to improve their shopping behavior and return behavior.
Overall, the policy changes that we’ve read, there’s actually been quite a few where we see customers who are citing how they love our flexible policy that we maintain, room for them to be able to initiate a free return where a lot of other companies are starting to take those things away. So I think that’s an important element of the policy that we’ve maintained. We haven’t experienced a significant amount of friction or complaints on the customer’s part with regards to some of the changes that we’ve made around changes to the shipping return, shipping cost fee structure either.
Operator: And the next question comes from the line of Dana Telsey with Telsey Advisory Group. Please proceed with your question.
Dana Telsey: Hi. Good afternoon, everyone. As you’re thinking about the metrics, whether it’s active customers’ orders, AOV, and the AOV increased that a tiny bit compared to last year. How are you seeing the promotional environment and how you planning going forward? And then, when you look at category performance, any updates on categories as compared to last quarter what you’re seeing from the consumer? Thank you.
Tiffany Smith: Sure. Dana, this is Tiffany. As it relates to AOV, you’re correct, there was a slight uptick actually in our AOV year-over-year, which Mark broke down pretty well, I think, in his section during the call where we did see a bit of an increase in AUR offset a bit by UPTs to hold pretty steady or increase year-over-year. I think one thing to note is the AOV does move for us in somewhat of a seasonal fashion. So when certain product classes are more predominant that carry higher AURs, then we may see that impact on AOV as well as during promotional timeframes. But we typically see in Q4, we would typically see AOVs come down. So I’m not going to give any real specifics around that, but that’s a fairly seasonal metric for us, and we continue to plan for it to react accordingly to what we’ve seen AOV movements look like in the past.
Dana Telsey: Got it. And on the category side, anything to mention?
Crystal Landsem: In terms of category specifics, I would say we’re very happy with the momentum that we’re seeing building again across our wedding and wedding-related event categories. And specifically across all of our dress categories, that’s been very encouraging to see some normalization there versus what we experienced from the previous quarter. And generally speaking, the newness and novelty that we’ve been introducing has been checking really well across the majority of our product classes.
Dana Telsey: Got it. An initial framework as you think about the upcoming year, any pushes and pulls on margins that we should be thinking about, as you’re thinking about qualitatively, 2024?
