Budd Bugatch : I have more on that, but I know I’ve got one more follow-up. And let me just go to the global retail because again that looks like that’s a significant drawdown in backlog, not quite as severe as AC. But what, can you talk a little bit Andi on the global retail, what you’re seeing in terms of e-commerce versus in-store? How do we look on same-store, same location or same brand kind of basis, however you wanted to give us a flavor on that and the future of that particular segment as well?
Andi Owen: Yes, Budd it’s a great question and Debbie’s here, so I’m going to let her answer the specifics. But I think it’s very promising and some of the backlog that you’re referring to from last year reflected some of the supply chain issues that we were having along with many other retailers as we work through that. I think the reduction in backlog is actually a really good thing and a point to how we’re managing our inventory much more efficiently. And the cycle time from when you were ordering furniture for us now to when it’s showing up in your home is much shorter. So that processing is actually really beneficial because it drives more conversion. And I would say that business is really healthy, outperforming competition. So Debbie, do you want to answer some of the specifics?
Debbie Propst: Hi, there. As it pertains to some of the channel questions you had, we’re seeing fairly consistent patterns across our three channels, stores, web and wholesale, with one exception that given the design service implementation that we’ve been doing in our stores, we’re really seeing an acceleration of average order value in that channel as the contribution of design service sales picks up. Those orders are about over 2x the size in dollar volume of our non-design service sales. So we’re very focused on optimizing the store traffic and the activity around design services. We’re in the process of densifying our store floor sets to showcase more of the expanded offering in stores, as well as making sure that we’re being much louder and more aggressive about driving traffic towards these design services now that our sales force is fully trained in that capability.
Budd Bugatch: So the average ticket in retail are you in the $2,000 to $3,000 range?
Debbie Propst: Yes, that’s correct.
Budd Bugatch : All right. Thank you. Good luck on the next quarters and the balance of the year.
Operator: Our next question comes from the line of Alex Fuhrman with Craig-Hallum Capital.
Alex Fuhrman: Andi, could you talked a little bit about consolidating some showrooms in an effort to align the cost structure. What about on the global retail side of the business? Do you think there are opportunities there to maybe consolidate some of your retail stores? Or are there still opportunities to continue to open more stores there?
Andi Owen: It’s a great question, Alex. And just to touch on the showroom consolidation, I think the major driver behind why we’ve decided to do this is really driven from our customers in the AD community and making sure that we have everything in an easy and convenient place for them to actually see all of our brands. So we’re very excited about that. It’s not really driven by cost. Cost is a great side benefit, but really driven by the customer and what they’re telling us. From a retail store standpoint, we are very under stored compared to our competition. And I would say we have opportunity to increase our store footprint. We find that our customer that shops online as well as in bricks and mortar is increasingly a better customer.
So we think we have a huge opportunity in the next 2 to 3 years to increase that footprint. We’re also seeing really, really successful trends in our stores. Debbie mentioned design services, the work that our AEs are doing to personalize and really move the sale forward is very helpful. So, we’re very bullish on store growth.
Alex Fuhrman: And Andi, are there any brands in particular you think are under stored or perhaps opportunities for multi branded stores?
Andi Owen: I think primarily our initial growth will be around the DWR brand and Herman Miller. We definitely think there’s possibility for Knoll as well, but we carry Knoll within design within reach as well. So, all of our brands have potential, but those 3 other ones we’ll focus on first.
Operator: Our next question comes from the line of Reuben Garner with The Benchmark Company.
Reuben Garner: Just wanted to kind of clarify plus square something up, Jeff. You talked about kind of maybe nearing or being at an inflection point. I don’t know if that was in Americas specific comment or just kind of in general, but you’re also announcing a restructuring, implementing cost savings, I would guess, because you’ve had kind of consistent order pressure over the last year or 18 months as you put it. Can you kind of walk us through the decision or the thought process there, why restructuring now if we’re going to start coming out of this? And then I got a follow-up.
Andi Owen: Let me start with that one, Reuben, and then I’ll pass it on to Jeff. Listen, we’re always looking at our structure and how efficient we’re being. And remember, we’re still finishing up integration between these two companies. And as we finish some of our synergy work, as we move toward into the future, we’re becoming more and more efficient in certain functions. So as we’ve done that, we’ve taken the opportunity to sort of close the circle on many of the integration activities. We think we’re mostly at the end, but this is really kind of the final part of that. Jeff, what would you add?
