Efraim Grinberg: So, we’ve done very well within the department store channel and expect to continue to do well, but I think it will be – they will be very focused on inventory throughout the year and on managing to their sales trends, as they have been and as they should be. So, I think their inventories are in a pretty healthy place, but I think one of the things that the consumer in the US has, first of all, alternatives in terms of they’re now spending money on experiences, but even regardless of that, you’ve seen inflation take a toll on consumers, and then the anniversary of stimulus, which had built a tremendous amount of savings with the American consumer, and those savings are now being depleted by inflation as well.
So, I think it’s why we had already in the third quarter, believed that you would see an impact of this in the holiday period. And although we did better than we’d originally forecasted, we did see the impact of that – of all these measures on the consumer.
Oliver Chen: Okay. And Sallie, as we model next year, on the gross margin line, what should we understand about the comparisons and also the back half versus first half? And lastly, as we think about the revenue line between wholesale and your direct to consumer retail, any call outs in terms of what we should pay attention to when we’re modeling our quarters? Thank you.
Sallie DeMarsilis: Thanks, Oliver. So, overall, it’s a – we feel 56% is the right gross margin for the year. We do have some choppiness in the past – this past year and the year before, with certain quarters being significantly stronger. So, the comparisons can be interesting to say the least, even this fourth quarter that we just finished. Last year fourth quarter was our absolute highest this company has ever seen, but this most recent fourth quarter was still significantly up from fiscal €˜21 and fiscal ’20. So, I guess quarters do matter. We don’t have any call outs individually that there’s anything significant happening in any one of the quarters from a promotional cadence or anything else. So, it should be fairly level, just that the comparisons to last year could be a little choppy based on how – I’m sorry, not last year, fiscal €˜23, how the quarters break out for fiscal €˜23.
But we still will have obviously, mix really being the contributing factor as US wholesale generally has been our highest gross margin contributor. I think your other question had to do with cadence of revenues and breaking it down by maybe bigger channel pieces. I think I’ll mention something. I’m sure Efraim will jump in. Once again, the comparisons to last year are what makes this year challenging. We had record-setting revenues in the first two quarters of this year, so fiscal ’23. So, it makes the comparisons in fiscal €˜24 quite difficult, plus we have the uncertainty hitting right now that’s causing some stress.
Efraim Grinberg: And I’ll add to that, that I do believe that people have returned to brick-and-mortar channels. And so, you’ll see a balancing out between sales in the brick-and-mortar channel and on websites and – as well. Remember for about two years, they could only really buy, or they would only really buy on websites, or predominantly, and we’re seeing a return to a more balanced approach. People – I think – the good thing is that it’s kind of said, well, brick-and-mortar still is going to be here for a long, long time, and people are still going to purchase within that channel. So, I think you’ll just see a more balancing out of that as well. And I think – I would imagine that our ratio of sales, of our own sales that are direct to the consumer, and will remain fairly similar to what it was last year.
Oliver Chen: Thank you. Very helpful. Best regards.
Efraim Grinberg: Okay. Thank you, Oliver. Okay. Thank you. I would like to thank all of you for being with us this morning, and we look forward to seeing you again for our first quarter conference call. Thank you.
Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.
