Anne Bramman: Yes. Thanks, Kimberly. Erik is going to give some broader context and then Michael can give specific for the question.
Erik Nordstrom: Yes. Thanks for the question, Kimberly. Let me start with — there’s certainly a lot of uncertainty out there. Macroeconomic conditions and customer behavior is moving rapidly, and we feel really well prepared for that uncertainty. And I take you back to our last quarter call, we started to see a little softness in the end of June. And we made the call pretty early in hindsight to take what we thought were the prudent steps and in particular, reducing inventory managing our expenses and overall improving our agility to navigate these uncertain times. And those actions have served us well. We really feel good about our execution through Q3 of that plan. We exceeded our plan last quarter. And probably more importantly, it sets us up well for the uncertainty going forward.
We’re not just starting right now of looking at kind of the volatile economic times out there and making adjustments. These adjustments were put in place at the end of last quarter, and again, have served us well through Q3 and have prepared as well going forward.
Michael Maher: Yes. So Kimberly, more specifically than about 2023 is, we’re not giving 2023 guidance today. But given the uncertainty that Erik just talked about in the macro environment, we’re really focused on preserving and protecting that agility and that flexibility as we go forward into the fourth quarter and into next year. So that means managing inventory more conservatively to not only increase agility, but also improved gross margin. We’d rather be chasing the business in clearing. You heard Pete talk earlier about a double-digit improvement target for our 2023 inventory turn. It also means disciplined expense management and continuing to hold the line on that. And then just continuing to build on the strategic initiatives that we’ve talked about with a special focus on supply chain, given the size of our digital business that that helps us, that improves our capability to serve our customers, but it also helps mitigate some of that inflationary cost pressure that you alluded to and improve our profitability.
So not ready to give specific guidance yet, but those are sort of the guiding principles as we think about planning for next year.
Kimberly Greenberger: Thank you.
Operator: Next is Ed Yruma with Piper Sandler.
Ed Yruma: Hey guys, thanks for taking our questions and best of luck in your next step. I guess, first, a bigger picture question. Gosh, it might have been a couple of analyst days ago, but you once said that online and stores had roughly equivalent contribution margin. Just given the new dynamic growth outpacing in the store fleet versus e-com, can you refresh us on that and how we should view contribution margin now that you’re tipping back to stores? And then as a follow-up, the traffic trends seem to have lagged historically or recent history at the urban stores ex New York, give us a quick update as to performance of urban versus suburban? Thank you.
Erik Nordstrom: Yeah. Let me start and then anyone else can jump in there. So the contribution margin between online and stores, for the Nordstrom banner, they remain pretty darn close. And I guess I’ve called out to variable, just to shed a little more light on it. Certainly, there’s been increase expenses in supply chain, particularly transportation that hits the digital business a little more. But offsetting that is our digital business has been leveraging really well. As we grow sales there, there’s a big fixed cost base there that gives us a lot of leverage as we add sales. So overall, we’re really pleased with our online profitability in nordstrom.com. The Nordstrom stores that model has a lot of variable expense to us, which allows us to manage it well as sales trend up or down.
