Rob DeMartini: It’s a little bit more hit or miss than Scott and I would like it to be. I mean, we’re in the same locations with the same co-tenancy. We do think that we’ve got a different degree of maturity in the staff and the stores, and we’re trying to make sure that we’re coaching them up. But I can’t point to one thing and say this is what it is. There are a couple of places where we know it’s just simply a lease that we probably shouldn’t have gotten into. But in most cases, it’s investing in the people and the training and make sure that the marketing that supports them is getting people to walk in. And when that happens, we’ve got a very good consumer experience and one that’s getting better at selling as well.
Bobby Griffin: And my last question really just it’s a follow-up on, I guess, those comments on maybe feeling comfortable where the street is around 38% gross margin in 2Q, which, we got the step-up from the nonrepeating issues. Anything else that you’re kind of seeing as mix moving back in your favor with maybe DTC being a little bit better in 2Q than wholesale? Or is 1Q going to be a peak wholesale quarter? Is there anything else you’re seeing in the quarter to date to help us bridge that step-up?
Todd Vogensen: Yes. So where wholesale was in Q1 is much what we expect out of the mix going forward. To be in that mid-40% range is solid performance from wholesale and what we had seen across much of the back half of last year. So, really more the driver for us is going to be the things that we have control over. We had some selective price increases that we had gone through in Q1, and so we are getting the benefit of that. In addition, we are already seeing the benefits off of our operational initiatives both from a sourcing perspective and a manufacturing efficiency perspective. And so those initial gains as they flow through, they really do start to impact our gross margin pretty significantly.
Operator: The next question comes from Michael Lasser at UBS Securities.
Dan Silverstein: Hey, good afternoon. This is Dan Silverstein on for Michael.
Rob DeMartini: Hi, Dan.
Dan Silverstein: Thanks for taking our questions and congrats on the progress. Firstly, just wanted to ask, given trends in the industry are pretty volatile month to month. Is there a good way to think about incremental or decremental EBITDA margins if sales materialize a bit differently than planned?
Todd Vogensen: We really are trying to manage our cost structure pretty aggressively when we do see trends that are on the downside. But knowing that we have a gross margin rate of call it high 30% range. A lot of that ends up being variable, and then there’s a portion of our G&A structure that can be fairly variable, advertising being one of them. So we haven’t given out an exact flow through on it, but to maybe think about it in the 25% to 35% range is a fair starting point.
Dan Silverstein: And then just one more, drilling down on DTC, which was flattish year-over-year. What magnitude of improvement does your sales guide embed for that channel this year?
Todd Vogensen: I don’t think we’ve gotten down to giving guidance on channel level growth, but clearly we have a lot of plans in place to get ourselves back to growth in e-commerce. This was a quarter where we did not see growth and we’ve had a number of those over the last couple of years. So the plan really is to get ourselves back on a firm footing and to see a positive trajectory in the e-commerce channel.
Operator: Thank you. There are no further questions. I will turn the call back over for closing comments.
Rob DeMartini: Well, I think just to close, I’d like to make a couple of thank you. I want to thank the Purple associates that have hung in through a very difficult couple of years, and I think we’re starting to see some very encouraging growth. We’re cautious about the short-term, but confident and convinced that this brand is going to be a major contributor to the category. So I’d also like to thank our wholesale partners and appreciate the analysts that pay attention to what we’re doing. Thank you.
Operator: Ladies and gentlemen, this concludes your conference for today. We thank you for participating and we ask that you please disconnect your lines.
