Tom Chubb: Yes, I think for us, we’re very consistent. We walked ahead through the whole cadence of promotions with Tommy Bahama. But I would say across the board, we’re consistent with last year. We’ve mixed things up a little bit, not every event is exactly apples-to-apples.
Scott Grassmyer: And we did mention we expect some very modest gross margin expansion and that’s a little more mix oriented with the direct consumer being a bit higher. But overall margin should hold well, which means promotions should be pretty much in line with last year.
Operator: Our next question comes from the line of Jeff Lick with B. Riley Financial.
Jeff Lick : I was just wondering if you could elaborate a little bit on the food and beverage, coming in at 23, obviously, Hawaii and then you mentioned remodels had an impact. I was just wondering if you can maybe reconcile, like how much of an impact that might have been? And then, obviously, Tommy appears to be the standout in terms of sales. I was just curious if you maybe unpack a little bit of where that came from, did you continue to see good growth in women’s? Just any help there would be appreciated.
Tom Chubb: I’ll start with the women’s, because boy, that’s a great story that we’ve had this year. Jeff, we always look at that with our direct-to-consumer basis, because that’s the clean way to look at it. But in the third quarter, we were up from just under 30 last year to just under 35 this year, which we’re super excited. And year-to-date, we’re close to 38 from roughly 35 last year. So that’s a very good story. And then in terms of some of the remodeling and Hawaii impact, Scott?
Scott Grassmyer: Jeff, we were down 3% but we comped up 1% in food and beverage. We had about $1 million of top line impacted by both Lahaina being gone and then Mauna Lani, we had a major remodel. So it was closed a good part of the quarter. So overall, our food and beverage business has been very good. So we’ve been very pleased with that.
Tom Chubb: It’s also — I’ll just add, it’s been very steady. Scott and I were talking about this earlier today, but we haven’t had more than one or two days in a row that maybe we’re off a little bit, but it’s just been every day, we seem to just keep delivering in food and beverage, which is great.
Operator: And our next question comes from the line of Janine Stitcher with BTIG.
Janine Stitcher: Just another question on promotions. Understanding that the promotions are planned in Q4 pretty similar to last year. But I’d love to understand just if the environment remains promotional as we get into next year, your high level kind of philosophical thoughts just your willingness to flex more promotions to stay competitive? And then second for me, on active customers, you’ve grown them by a huge number over the last few years. So just any changes in retention of those customers or any habits of these more recent cohorts?
Tom Chubb: I think with respect to our promotional philosophy, I don’t think it will really change awful lot. I think we focus on keeping our brands relevant by making sure that they have very clear positions, that they make very clear and consistent brand messaging. And then it’s all about creating desire, Janine. As you know, what we sell is not something that people really need, it’s more of a want item. And that’s our number one job through our brands is to create that desire and then have the products that the desire can be the object of. And we’ve been through a lot of promotional cycles forever. And every year, the market is promotional. And we strongly believe, as we’ve demonstrated this year and in the third quarter, and I think we will in the fourth quarter, that we can remain very relevant and perform well relative to where the market is based on those branding activities. So that’s sort of our game plan there.
Janine Stitcher: And then just on active customers?
Tom Chubb: Active customers, as we said, our active customer count is up mid single digits for the trailing 12 months year-over-year. And our new customer add rate is also up mid single digits. So the health of our customer base, our ability to attract and retain remains quite good. And then as we mentioned in the prepared remarks, average annual spend is more or less flat.
Scott Grassmyer: And our retention rates are holding well, which is something that — we have a very high retention rate, and it’s been holding.
Tom Chubb: Yes, very healthy retention.
Operator: And we have reached the end of the question-and-answer session. I’ll now turn the call back over to Chairman and CEO, Tom Chubb, for closing remarks.
Tom Chubb: Okay. Thank you, [Shamila]. Thanks to all of you very much for your interest in our company. We wish you all a very happy holiday season, and we look forward to talking to you again next quarter. Take care until then.
Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
