Lorraine Hutchinson: Thank you. And then can you provide us with some insight on how you’re thinking about gross margin for the rest of the year? I imagine we’ll continue to have the fixed cost deleverage, but what do you think the merchandise margin trajectory will look like in this environment?
Joan Hilson: Well, what I’d offered there, Lorraine, is that the cost savings that both Gina and I commented on, which, you know, increased from a $100 million to $125 million to $250 million, half of those impact – roughly half impact gross margin, and largely in the back half of the year. And what did they relate to? Clearly, product cost savings, Gina talked about it, upping that from $20 million to $40 million. We’re also seeing opportunity given the clearance and the health. The clearance position and health of our inventory first quarter, we saw core merchandise margin expansion of a 100 basis points. So, we’re very pleased to see that. So, our continued health of our industry – of our inventory helps us manage margin and just use promotion as a strategic lever for us.
So, back half, just to recap half of the cost savings as gross margin and SG&A positioned, and we’re just leveraging the initiatives and the competitive advantages we’ve put in place to deliver that.
Lorraine Hutchinson: Thank you.
Operator: Our next question comes from Paul Lejuez with Citi. Paul, please go ahead. Your line is open.
Paul Lejuez: Hey, thanks guys. Can you talk about the promotional landscape out there? Curious who’s driving and you guys have pretty large market share. So, I would think that you would typically take more of a lead rather than follow. So, I just want to understand that dynamic a little bit in terms of what you’re seeing. And then also on your expectations for the bridal business for the rest of the year, any way you can quantify that recovery and engagement, how that translates into your bridal business in terms of just what do you expect over the next couple of quarters in bridal 2Q and 3Q versus what you expect in 4Q? Thanks.
Gina Drosos: Thanks, Paul. So, let me comment, kind of on those in in reverse. So, on bridal, our predictive models, which incorporated trends from many years and 45 different factors that we are tracking on consumers are spot on in terms of the number of consumers who are getting engaged and the units of engagement rings that we sold in the quarter. What’s changed a bit is the pressure on consumer spending from the macro environment. So, we saw some degradation in ATV in bridal late in the quarter. That’s different from what we saw in Q4. So, that’s a changing trend, and our revised guidance reflects an assumption that units will continue to track, you know, in-line with our predictions, but we’ll continue to see some pressure on ATV.
So, what’s the pressure coming from? It’s a combination of two things. One is a bit of consumer trade down, so people still getting engaged, but buying a ring slightly lower price. And we don’t think that everyone in the bridal category predicted this downturn in engagements as accurately as we did and have some excess inventory in bridal. And so, we’ve seen slightly heightened rate of promotion in bridal that we wouldn’t typically have seen. We’re assuming both of those things continue for the rest of the year in the revised guidance.
Operator: Our next question comes from Mauricio Serna with UBS. Mauricio, please go ahead. Your line is open.
