Brandon Cheatham: Thanks. That’s very helpful. And then I was wondering if you could talk about like how material costs are trending. I think I’ve seen diamond prices have started to come down. Does that end up helping your margins? And anything that you can talk about on that?
Gina Drosos: There are a couple of things that are helping our margins. That was a good story in the quarter. One is the strategic sourcing efforts that we’ve put in place. So we work with our vendors, far in advance to make sure that we can get the best pricing on our product. And then that can be passed through to our customers in great value to drive top-line as well as have a bottom-line benefit. So that’s an ongoing effort for us. We also have put increasingly more analytics against what we call strategic revenue management. So how we manage the combination of pricing, promotion, discounting and assortment levels at different price points, and that work is really helping the margin. And then finally, it’s what Joan talked about, which we have very healthy inventory.
And so we’re taking marks earlier and not rolling as many things through the clearance, which is a great story. So that’s really helped. So in terms of the material cost, we think we’re well positioned to kind of continue on the path that we’ve been on and deliver the strong margins that we’ve committed to.
Brandon Cheatham: Great. Thank you. And, good luck.
Gina Drosos: Thank you.
Operator: Thank you. Your next question comes from the line of Mauricio Serna from UBS. Please go ahead.
Mauricio Serna: Great. Good morning, and thanks for taking my questions. I guess I just wanted to ask first about the Q3 sales guidance. Does that like imply any type of divergence in performance if we think about the banners segmented according to price points, the low to mid-tier versus the higher end? And then maybe you could talk about thinking about the Q4 implied operating income guidance, I think it implies a modest operating margin expansion, roughly 30 basis points. Just want to understand if that’s like coming both from gross margin improvement and also SG&A as a percentage of sales? Thank you.
Gina Drosos: Let me — hey, Mauricio, let me start first with some of the consumer dynamics that we’re seeing. And then, Joan, maybe you can get into the guidance aspect. But from a consumer dynamic, there are really three strategies that we have to address our holiday shoppers this year. There is always an early savvy shopper, typically, a woman typically buying at lower price points, typically comes into the category, September, October and is done with her shopping by Black Friday. We expect that shopper to shop a bit later this year, and we’ve really structured our marketing, our promotions, our assortment to draw her in early, but also cater to her natural cautious outlook on the economy right now and her desire to get the best deal.
Then as we move into the fourth quarter, we see more romantic gifting happened, tends to be at higher price points. We see bridal beginning its three-year recovery. And so I think those are some of the consumer trends that we consistently look at and manage our marketing inventory, store, labor, all of those to meet the consumer where they are during shopping.
Joan Hilson: And then with respect to the guidance in Q3, we were pleased with what we saw in June and July. We were pleased with the selling under $1,000. We saw that pick up, particularly in fashion. So we have translated that into our Q3, Q4 guidance as well, Mauricio. So that’s a bit underneath the covers from a [folio] (ph) perspective. And we’re assuming consistent trends with the first half of the year in Q3. And then as I said, the cycling of UK shutdowns and the beginning of the bridal recovery in Q4 is what’s driving some of that increase in the fourth quarter. And then when you think about the front half, back half with respect to the operating margin, as I said in the first half, we had a point of impact from Blue Nile, 1 point from strategic investments and 2 points from the deleverage of fixed costs.
