It’s a work in progress and as it continues, I’ll be excited to share more with you.
Aneesha Sherman: That’s super helpful. Can I ask a quick follow-up? Do you expect to go back to your usual seasonal cadence of having a slightly heavier weighted second half, which is kind of where you were pre-COVID where second half was contributing a little bit more than half of annual sales?
David Aufderhaar: I mean it’s a good question, Aneesha. I think as we go forward, I think some of those trends could return to the business. But I think to Matt’s point, like I think we’re focused right now on sort of some of those near-term actions that we’re doing because we know that will drive us towards active client growth and sustainable revenue growth.
Aneesha Sherman: Got it. Thank you.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Maria Ripps from Canaccord. Your line is open.
Maria Ripps: Great. Thank you for taking my questions. First, can you maybe just talk about whether you’re seeing any impact from the lower course competitors that are growing aggressively in the US, whether from the revenue standpoint or intensifying competition in advertising spend? And then secondly, can you maybe just give us a little bit more color around the launch of new client onboarding experience. What are some of the new features that you have in mind that maybe you can talk about? And how will it be different from the current process.
David Aufderhaar: Hey, Maria. Yeah, happy to answer both of those questions. First, a question around newer lower-cost entrants into the market, I think one of the things that really encourages me about the Stitch Fix business model is in terms of the client that we’re serving and one in which our service resonates so well with — we don’t feel like that’s taking away for business. We understand some of our natural competitors are having to deal with this on a considered basis. But from our perspective, the clients that are coming to Stitch Fix, the ones that are looking for help with personal styling, the ones that are looking for help in terms of completing their closet and completing their wardrobe. Ones that are starting a new job and looking to understand how to build out their assortment so that they have a full collection of workwear or someone that’s struggling with finding apparel that fits them perfectly.
All of the need states that we meet — that we’re able to satisfy so much better than many other retailers. We feel like those are competitive differentiators for us that offer us a tremendous amount of protection from the retailers that you might have in mind. That are — in many ways, disrupting others in the market today. In terms of additional color on the new onboarding experience, at this point, what I’ll share is that our goal through this process is to make sure that the experience achieves a few different objectives. The first of which is that we’re able to acquire all the information that we need from prospective clients in order to serve them as well as possible from the very first interaction that we have with them. We also need to make sure that we’re delivering confidence to them through that experience that we’ll be able to meet those needs that we’ll be able to understand their style preference, their value orientation.
We need them to have tremendous confidence that we’ll be able to understand and nail their fit. And then the third piece, which is really important and something that will manifest is it has to be fun. It has to be engaging. It has to be dynamic. And because we’re in the early stages of it, I’ll share more as we get closer. But those are the tenants that — and the principles that are underlying the development of this new product.
Maria Ripps: Got it. Thank you so much for the color.
David Aufderhaar: Thanks, Maria.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Edward Yruma with PSC. Your line is open.
Edward Yruma: Hey, guys. Thanks very much for taking the question. Two for me, I guess first, there’s obviously a large customer base that is kind of later that’s fallen out, I know at the time of the IPO, there was a thought process around a 24 to 36-month kind of reactivation period as people’s size or preferences change. Is any of that still holding? And kind of what efforts are you making against the lapsed customers? And then as a follow-up, I know one area of refinement has been around the close-up policy on clearing excess inventory. I guess, kind of where are you with that? And kind of how are you disposing of some of this excess inventory? Thanks.
Matt Baer: Hey, Ed, I appreciate the question. As I understood the first part, it’s about how we continue to drive engagement with our current clients. And it’s something that we talked about in prior calls, as we’re continuing to improve and focus on our ability to acquire new clients judiciously, we’re similarly working to ensure that we’re doing a better job engaging our current clients in order to fend off dormancy proactively. And we’re very mindful in terms of the retention and reactivation campaigns. I do feel that the team is extremely well dialed in and has the right amount of focus on this. We continue to have pockets of success or continue to have success around that reengagement. And we’re going to continue to also invest within our CRM capabilities, so that we can better understand who our clients are, the right message is to deliver them, what the right time is to deliver that right message.
