Mauricio Serna: Great. Good morning and thanks for taking our question. First, I guess, like to ask on the gross margin guidance, you know, are you expecting, you know, to maintain the core merchandise margins, expanding in the next couple of quarters? And then if I think about like industry dynamics, is there anything you can tell us about, like, how lab-grown diamonds are disrupting maybe the ATV or the discounting that you’re seeing across the space? And just very lastly on the cost savings, you know, the increase that you are expecting, would you say, like that change is, like, mostly attributed to the, you know, the savings from the store closures that you’re expecting now or what are the other main drivers behind that increase of $100 million to $150 million on the cost savings target? Thank you.
Joan Hilson: So, as I mentioned Mauricio on gross margins, we are very pleased with our inventory position and the health of our inventory, which really reflects it within our core businesses. So, yes, we would expect to see continued positivity in our positive result in our core merchandise margin. In May, just importantly, in May, we’ve also saw the continued decline in inventory year-over-year. So, very pleased with how the team is managing inventory to continue to position us well to take strategic promotion as needed and really paving the way for newness for us, which is a critical component of continuing to deliver that margin expansion. The other point I’d make on margin is services. Services, as we said at our Investor Day, carries a 20% premium to merchandise margin, and we’re seeing services growth of 5% outpacing clearly merchandise, you know, merchandise growth and services itself when we are advancing repair, we’re advancing our warranty programs as well, and the customer continues to respond to those, and we’re holding, very importantly, holding our attachment rate in bridal and overall raising attachment rate 200 basis points in the first quarter as Gina mentioned.
Gina Drosos: And then Mauricio on lab-created diamonds, we do not see ATV and bridal being driven by LCDs. They’re less than 15% of our overall sales. And, you know, just an important consumer trend and offering for us, we believe that the majority of our customers still prefer their rarity that comes from buying a one of a kind natural diamond. What tends to happen is that engagement shoppers begin their journey with a predetermined budget. And so for those who are open to lab-created diamonds, we’ve consistently seen them trade up to a larger stone, which we have a competitive advantage in our offering because we’re vertically integrated. And so, we’ve been able to, I think, really manage that very effectively to have an equal or higher ATV typically with a better margin profile for the company.
Joan Hilson: And then with the respect to cost savings, Mauricio, the 150 million increase, a portion of that clearly relates to our, you know, the store closings. However, we continue to lean into our store, the dynamic store label model that we have and we apply that as well to our customer care centers, which enables us to continue to flex at, you know, at a nice rate to continue to drive our double-digit operating model that, you know, we believe is very much in-tact and working. I would also articulate that the sourcing opportunities itself are, you know, that provide cost transparency. We believe it can take costs out of the product without compromising quality and innovation, and you know, that is factored into here, as well as driving out administrative costs that the customer just doesn’t see, and our team is very much this is a muscle and a rigor that we’ve built over the last two to three years.
And we are in step and, you know, plan and see the path to delivering this incremental cost savings.
