Aneesha Sherman: Hi. Thank you. My question is around inventory. So, Elizabeth, you talked about national brands being slightly lower margin. I am curious if you are seeing more interest from vendors, particularly national brands as they try to clear their own inventories this quarter and probably going into next quarter as well? And is there an opportunity there in terms of gross margin from a better buying environment that you may be seeing right now? And then a follow-up also on inventory, you mentioned the six months lead time as your typical lead time. So, I guess I would assume that the goods that you have now are spring/summer €˜23 goods, how do you think about the risk of sell-through for that product, especially if you see macro continuing to be weak into the next quarter or two quarters? Thanks.
Dan Jedda: Yes. I can take that question. No, we are not seeing that, and it’s not something we have considered in terms of national brands €“ of course, we have been selective on bringing in the right national brands that we think our customers are going to love that, do well within fix or within Freestyle. But we haven’t seen anything changed beyond that in terms of being approached for national brands top load inventory. And really, with our focus on exclusive brands and our Stitch Fix only brands, which is not only higher margin, but it’s what our clients love. We just feel there is an opportunity to continue to invest in those areas. With respect to the question on inventory, we talked a little bit about summer spring in Q4, we took some inventory reserves to account for that.
We feel that we are in a very good spot in terms of what we have reserved for. And we have also €“ as Elizabeth mentioned, we also have different avenues to focus on overstock inventory, mainly limited time offers and/or clearance events, whether they are at the end of the season, which we often do to help us clear out some of the inventory €“ excess inventory that we do have. So, while we do have a high inventory, we watch it pretty closely. I am not concerned about the health of the inventory at this point. Again, we looked at this in our Q4 and took the appropriate level of reserves and have since clearanced a lot of that inventory out, very focused on fall/winter right now, which we are just getting €“ going into that season. And so we are watching how that does.
And again, as we expect inventory to come down sequentially over the next three quarters, we feel we are in a good spot going forward.
Aneesha Sherman: Okay. Thank you.
Operator: Thank you. And our final question comes from the line of Lamont Williams with Stifel.
Lamont Williams: Hi. Thank you for taking my question. Just €“ and primarily, since it’s already answered, but on the Freestyle penetration, I believe you have talked about that being pretty consistent around 30% for women. Is that still the case today?
Elizabeth Spaulding: Hey Lamont, thanks for the question. Yes. I think overall, we look at it across our base. But yes, it’s kind of in that 25% range, and it stayed pretty steady, I would say, in terms of new client adoption and then holding steady there. We do have things on the horizon that we will be launching in the back half of the year like SMS, encouraging were app demos. Those things, we believe we still believe there is opportunity for that to get higher but it stayed pretty stable, I would say, over the last several quarters.
Lamont Williams: Okay. Thank you.
Operator: Thank you. And that does conclude today’s conference call. Ladies and gentlemen, thank you for participating. And you may now disconnect.
