Jim Sanderson: Okay. Okay. Understood. And just one last question on the store closures and new unit openings. I think you mentioned potentially, was it a 4% drag on same-store sales related to closures but offset by the incremental revenue from the new store openings for the next 12 months? Is that the right way to look at that balance between openings and closings?
Joan Hilson: Yeah. What we said is that the openings, Jim, relate to larger stores and higher volume stores. So that’s helping us with the top-line. And then the larger stores is what keeps — even though we’re closing up to 150 and opening 30 to 35, they’re larger stores. So therefore, our square footage remains similar to the prior year.
Jim Sanderson: Understood. Thank you very much.
Joan Hilson: You’re welcome.
Operator: Thank you. Your next question comes from the line of Dana Telsey from Telsey Group. Please go ahead.
Dana Telsey: Hi, good morning, everyone. It was encouraging to see that the ATV increased 4% and Blue Nile obviously, being a contributor to that. If you ex out Blue Nile, what did you see throughout the banners, and obviously, lower price point fashion is a big mention. What are you seeing there across the banners, how is the margin profile on that, especially given the strength in the gross margin that we saw this quarter, the opportunity for that to continue? Thank you.
Joan Hilson: Thanks, Dana. So [excluding] (ph) Blue Nile, we saw relatively consistent ATV performance to the prior quarter, down slightly — relatively flat, down slightly is the way I picture that for you. And what contributed to that was we saw a consistent performance in some buckets, some price points, but what we were very pleased with was the improvement in the price points under 1,000 and specific bands over 1,000 were also strong. And we saw that happen more so in June and July. So as we think about that leading into the holiday season, we were very encouraged by that and the response to the fashion assortment that we have. Bridal in and of itself was relatively consistent throughout the quarter as we — in line with our expectations.
And so as we — and as you know, we are at 50%, roughly 50% penetration in bridal in our business. So as we lean into the recovery of bridal or engagements in the fourth quarter, we would expect to see ATV that have a positive impact on ATV.
Dana Telsey: Got it. Thank you. And then any more color on the gross margin, Joan, that you would add for the balance of the year into next year, what’s sticky, what’s not?
Joan Hilson: Yeah. So what we’ve said is within our cost savings, roughly half of those of the $225 million to $250 million is within gross margin. It really back ended for the year and a significant portion of that just proportionately in the fourth quarter. So that’s something that will continue to be a positive for us as we progress through the year. I think inventory health is just another very strong management by our team across all banners. We have very strong inventory discipline in the analytics to tell us right assortment, right place, right timing is we’re really leaning into that. And we’ll use strategic promotion, as we always do, and we have — I think Gina mentioned in her prepared remarks that we have items at a price that bring value to our customers, but they’ve been strategically positioned within our assortment to manage gross margin.
Dana Telsey: Thank you.
Joan Hilson: We’ve talked in the past a value engineering that we do with our vendors where we can use off-weight diamonds to construct pieces that offer consumers a better value but also give us a higher margin. So we have a number of strong value-engineered items at a price in this year’s holiday assortment.
