Scott Grassmyer: One of the same resale on the top line but top and bottom line is the Maui situation that we talked about. So its $3 million to $4 million of both in the third quarter and top line and in the fourth quarter and top line in our projections that we’ve reduced and we got 36 stores, a $30 million business on Maui and the two that are open are operating at less than half of the sales volume right now. The [Indiscernible] gone it’s — it’s gone and the three very loose village stores are not open right now. We are optimistic that we will be able to get them open, but I don’t think there’s going to be a lot of torses very very close to [Indiscernible] so we really think it’s going to take quite a while for the tourism to get back in that areas, so that has also contributed to both our top and bottom line guidance changes.
Mauricio Serna: Got it. Very helpful and congratulations on those all. Thank you.
Tom Chubb: Thank you Mauricio.
Operator: Our next question comes from the line of Paul Lejuez with Citigroup. Please proceed with your question.
Tracy Kogan: Thanks. It’s Tracy Kogan for Paul. And I’m wondering if you guys could just elaborate on the current trends a little bit more. I was wondering if — is it one brand more than the other where you’re seeing a caution or maybe one channel versus another, just any differences you are seeing now. And then I have a follow up thanks.
Tom Chubb: So that trend Tracy is really it’s the you know the three bigger brands are all having a roughly similar experience and it’s a bit of a mix of channels. And again it’s really the conversion issue that were that’s holding us back up it and then the three smaller brands actually continue to grow nicely but when you’re small as they are still at this point there’s — there’s a bit of room to run always. So that’s — that’s kind of what we’re seeing.
Tracy Kogan: Got it. And then I was wondering if you could quantify some of the moving pieces within gross margin this quarter and kind of where those are headed in the back half. I think you mentioned freight helping I was wondering if you could maybe quantify that and maybe talk about when that benefit runs out, if it’s still going to next year that freight benefit, any any color you have on that would be helpful. Thanks.
Scott Grassmyer: Yes the freight for the most part is — it’s close to flushing itself through the system. The higher freight from last year was mainly a first half item and mainly a first quarter less on the second quarter fairly minimal in Q3 and Q4, so that’s much less of an impact than it had been in previous quarters. We got — then — having Johnny Was helps us there and then we had some inventory write downs in Q4 last year that we in our emerging brands group that we don’t anticipate anniversaring, so our fourth quarter that will help our fourth quarter gross margin. So I think those are the big runs.
Tracy Kogan: Got it. Thanks very much thank.
Tom Chubb: Thank you Tracy.
Operator: Our 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 think about what’s happening with the current consumer with the consumer right now and obviously your inventory levels also how are you planning full price versus mark down business going forward. And is there anything on the category side by brand that has done better or not doing better to give you any indication of consumer pulse and what they have focused on?
Tom Chubb: Yes, great questions as always Dana and thanks for being on the call. So in terms of full price for versus markdown, our plan obviously is to do as much full price business as we possibly can and as we outlined in our response to Noah earlier in Lilly Pulitzer we’re not really going to do more promotional events but we’re going to mix them up, so the cadence of those and the look of those will be a bit different than what I were last year. And then in Tommy Bahama, it’s really going to be very similar to what you saw last year and really in the past and the issue will be whether the consumer shops at their normal levels during full price or whether they hold back a little bit more and save their dollars for the events and that’s certainly we saw a bit of that in the second quarter where people were holding off and spending during the events which in more when the consumer is feeling a little more robust they tend to not weigh, they just want it as soon as it hits the floor.
And that’s kind of what we’ve factored in to our guidance as best as we can estimate all that, that’s what we’ve factored in our guidance for the balance of the year. And then the category question is good one because we’ve definitely seen a return this year to I wouldn’t call them dressy styles but dressy or wear, during the pandemic it went super casual and cozy and then that actually continued for a while and we’re more back to sort of what I would call normal so ladies wearing prettier, more structured dresses and gentlemen wearing more long sleeve bottoms and that kind of thing. And in the first half if you think about it when we were buying product at the time we had to place those styles that hit the floor in the first half that was when the supply chain was an absolute disaster and we were probably buying typically six weeks earlier than we normally would which meant we were buying in much more of an information vacuum, and as a result of that I think it’s a natural sort of instant because we didn’t know we got much more basic and core in our assortment.
And to be honest, I think that probably hurt us a little bit in the first half by the time we get to the second half what’s on the floor now and particularly for fourth quarter we’re much more aware we’re buying in our normal cycle the assortments have a lot more newness in them than we did in the first half of the year and I think we’ve got – we’re better aligned with what the consumer actually wants now which is those dress of your styles not but there’s not still plenty of room for core and basic but just the proportion was probably a little bit out of whack during the first half and I think we’re much better shape for the segment.
Dana Telsey: Thank you.
Tom Chubb: Thank you Dana.
Operator: There are no further questions. I’d like to hand it back to Mr. Chubb for closing remarks.
Tom Chubb: Okay. Thank you Doug and thanks all of you for your interest in our company. We look forward to talking to you again in December and help hope that all of you are well until then.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
