Jack Preston: Hi, Jon, so we’re kind of getting some of that already. If you think about the ocean-freight contracts, they reset roughly June 1. So that’s where we saw the initial burden of those much higher rates, as we’ve talked about in various calls. But I would say every month since then, we have actualized a number lower than contracted. And the way you achieve that, obviously, you’re not always going to contract at the spot rates lower. So you’re going out in the spot market, and those rates have been coming down, there is excess availability, especially along certain Asia Pacific routes. And so while we initially saw margin pressure from the higher rates in, I would say, the first four, five months, we’re at a point now where we — like this last month, we’re lower than we were for the sort of contracted rates for the prior year.
So and if you think about our turn, call it, two, three times depending on the product category and a lot of our business is special order so there’s an immediate impact on that. But the part of stock, I mean, we felt pressure and we’re kind of now getting into the — some of the initial tailwinds and that’s reflected in our guidance obviously. But that we expect, honestly, as we look at it and we think about what’s happening with the supply chain, I think there’s probably more to come there, more opportunities. And so those are starting, and we’ll continue to see that in the next year, we believe.
Jonathan Matuszewski: That’s helpful. Best to look for the rest of the year.
Jack Preston: Thank you.
Gary Friedman: Thank you.
Operator: Our final question comes from the line of Michael Lasser from UBS. Please proceed.
Atul Maheshwari: Good evening. This is Atul Maheshwari on for Michael Lasser. Thanks a lot for taking our questions. Gary, your stock buybacks slowed quite a bit this quarter. The question is, why did you go slow on buybacks so much? Was it because of the M&A or has anything fundamentally changed about how you view buybacks in the current landscape given you still have over $2 billion of cash in the balance sheet?
Gary Friedman: Yes. Look, I think that — the housing market has collapsed. And it’s went down pretty viciously as interest rates have went up. And so I think Simeon’s first question was about being responsible. So, we’re not going to necessarily change the world through a buyback strategy. And when you’re going into kind of a storm that you haven’t seen before, you don’t want to sail — or let’s say, you’re not in a sailboat, but you’re in a boat — you don’t want to spend all your fuel before you can see the shore and run out and be floating around out there. So, there’s lots of examples of people who went out and spent a lot of money on buybacks and went bankrupt. And Bed Bath & Beyond will probably be the next one that does.
They’re pretty famous for how much stock they bought back. So, I don’t know exactly how this housing market is going to play out. I don’t know if the housing market is going to — almost always, the housing market is in a recession. I mean if somebody doesn’t think that, I’d love to just to zoom and put our numbers up for you. But the luxury housing market has trailed down since last September, right, it is down 8%, down 16%, down 17%, down 16%, down 12% in January, down 13% in February, down 15% in March, down 18% in April, down 18% again in May, down 21% in June, down 24% in July, down 28% in August. And the new numbers will come out for the next quarter, and we’ll never know how far it’s go down. But the odds are it could be down 35%, it could be down 40%.