Cathy Smith: And then Oliver, I’ll answer on the credit card revenues. Just remembering that, first and foremost, they’re a part of our loyalty program and they’re part of our most loyal customers. And as we think about the credit card revenues for Q3, they were up year-over-year, and that really was driven by higher customer balances, higher interest rates, a little bit of benefit from the new relationship with our TD partner and then offset a little bit by increased losses. As we move into Q4, I’d expect them to be around the same level, around that 3% or so of sales, so about the same level as we clear out the rest of the year.
Oliver Chen: Happy holidays. Best regards. Nice work on the marketplace model. Thanks.
Operator: Thank you. Next is Matthew Boss with JPMorgan. Please proceed with your question.
Matthew Boss: Great. Thanks. So Erik, maybe could you just elaborate on the continued softness at the Full-Line business? Maybe how much should we attribute it to the macro backdrop relative to company-specific execution? And then Pete, just maybe to tie into that from a category perspective, could you touch on trends in women’s apparel relative to the above-average performance that you cited in Active and Beauty?
Erik Nordstrom: Hey, Matthew. I’ll start with, we feel good about our execution. And that starts with having the right inventory levels that allow us to be responsive to the customer and get our mix right. And our merchandising teams have done a great job on that. Really pleased with our inventory levels and the agility that’s affording us. We still have some designer inventory to work through. Outside of that, we feel really good about that execution. So I think our execution is good. Now that being said, sales is a controllable for us. That is the scoreboard and on how we’re serving customers. And we see lots of opportunity to continue to do things within our control, in particular, around traffic. Traffic has been soft. Our average order size has gone up, but traffic has been down a bit.
So we’ve done some things as of late. Like we have a 5x beauty rewards promotion going on right now through holiday that we’re getting good response from and that is driving extra traffic and conversion. And we also have expanded our free two-day shipping. We’ve had — we’ve built out free two-day shipping capabilities as part of our loyalty program and really leverages our Closer to You, market strategy capabilities that we’ve talked about for a while. That’s built out the point that we’re able to expand that for the holiday season and get customers faster delivery, which we know is always a good thing both for conversion and for return rate. So again, in short, I think the execution has been really solid and put us in a good position to respond to the customers with the holiday season.
Peter Nordstrom: And this is Pete. Relative to women’s apparel you talked about, look, it’s a big and important category for us, and it’s got a lot of our attention. We’ve been making improvements, and we’re not where we need to be, but it’s definitely got momentum and moving in the right direction. We’ve spent a lot of time in the last couple of months in our own stores and actually in the competition too. And I think what’s been good about this whole process is the real return to the merchant stuff that super important that just being close to what customers are asking for, what their choices are there in the marketplace. And we’ve got some areas of strength we’re going to invest into. One of them is our own label programs.
You’ve heard us talk about that and it’s an opportunity for us to grow and that is true. Our sell-throughs in our — in the Nordstrom product, our own label is up 30% year-over-year. We have strong growth and that a lot of that’s in women’s apparel is why I’m bringing this up. We have strong growth planned in ’24. And when we can get that right, that’s going to have a lot to do with the overall health of our women’s apparel business. The other thing I’d say is being out in the stores, the call that we tend to get is about the things that we can bring in that feel special, elevated and aspirational relatively in every store that we serve. And a lot of that ends up in the kind of advanced contemporary space. And so we’re doing a good job of editing down and prioritizing and focusing on brands.
I would say one of the things that hurt us in the last couple of years, we probably were a little too wide with the breadth of our selection. Therefore, probably weren’t making strong enough statements on the stuff that matter most, and we have an opportunity to improve that, and we’ve been working on it. So I’m going to have to give us a little bit of an incomplete here, but we’ll definitely be circling back with you as time goes on to let you know about our progress, but there’s a lot of reason to believe that we have a good improvement to make there in women’s apparel.
Operator: Thank you. Our last question comes from Brooke Roach with Goldman Sachs. Please proceed with your question
Brooke Roach: Good afternoon and thank you for taking our question. I was hoping we could get a deeper update on what you’re seeing in the designer business. Is that trend starting to stabilize versus the softening trend that you had seen earlier in the year, either on a one-year or a four-year stock basis? And then for Cathy, can you elaborate on how you’re planning markdowns for the year, particularly what’s embedded for promotional recapture in your fourth quarter outlook relative to last year’s outsized pressure? Thank you.
