Kelly Wall: Yes, I’d say that, Kyle, it’s Kelly. The growth in the margin is, again, you typically see an improvement as you go from Q4 into Q1 of any year. And as you mentioned, that is largely driven by the higher early purchase option activity. And so, we did kind of experience that as expected in the quarter. And then I think as Douglas mentioned, the team has done a great job balancing risk in the portfolio as we’ve achieved the growth quarter-to-date, or improvement in the deliveries. And so while write-offs are up slightly, they continue to be in line with our expectations. Again, which encourages us, because as we grow the tools and processes that we’ve put in place to manage the risk, in the portfolio is working.
Kyle Joseph: Yes, and then just an update on BrandsMart. What kind of trends are you seeing in these kind of sales at BrandsMart and, you know, are those more kind of akin to what you’re seeing on the errand side of the business? Or just, yes, I guess kind of update us on the integration – now that we are where we are post-deal?
Stephen Olsen: Sure. Hey, Kyle. Steve, glad to answer that question. So at first I just state that we fully rolled out our integrated financial decision waterfall to all BrandsMart stores in the February timeframe. And the team, both on the BrandsMart leasing side with errands and the BrandsMart store team continue to find ways to improve performance, both from an operation, customer experience, and technology standpoint. But specifically regarding your question on performance, we did see growth in the portfolio, as well as the attach rate of BrandsMart leasing and the retail sales on a year-over-year basis of BrandsMart. So, we continue to improve and, but we’re really focused on finding ways to drive efficiencies and effectiveness in the model.
Kyle Joseph: Got it, very helpful. Last one from me. Just appreciate the color on credit and appreciate growth and specifically e-com growth. It’s going to take that higher. But just give us an update on kind of the health of the underlying consumer, which obviously drives both demand and credit performance. And they just continue to chug along. I know inflation has been stubborn, but just an update on the health of the underlying consumer would be great?
Douglas Lindsay: Yes, I think you’ve read about it, Kyle. I mean, underlying consumer inflation’s eating into them. It’s been tough. We’ve found that, our customer’s been pretty resilient, as we’ve said in the past. Most of the increase you’re seeing in write-offs and lowering of renewal rate is really just a mix-up between channels. Also, the underlying trends are, I would say, decent and our models are predicting or sloping risk appropriately. So, we’re really happy with lease decisioning and what’s going on there. We continue to optimize that in certain ways, to sort of maximize profitability, but also set our customer up for success, which is ultimately what our leasing power and our decisioning is all about. I’d say in terms of what we’re seeing out there on things like trade-down, at BrandsMart we are seeing the providers above us tightening lease standards.
So we know there’s some pressure out there in the economy, and we saw that starting at the beginning, at the end of last year and going into this year. However, we haven’t seen material signs of customer trade-down yet at errands, but we’re well poised to capture that when it does and when the opportunity arises. Last thing I would say just on the state of the customer is, while the market for our product categories furniture, appliances, and electronics are slow across the broader economy. We’re seeing great success at errands capturing the opportunity that’s out there. Customers are wanting more and more. We’re seeing even our existing and previous customers, and our new customers wanting to transact with us in an omni-channel way. And most of the growth that we’re seeing right now, has to do with the changes we’ve made to our omni-channel lease decisioning, and customer acquisition program.
Which is providing leasing power across all of our channels to all of our customers, and we believe that it’s driving significantly higher, we know it’s driving significantly higher conversion rates, but we’re also getting add-on sales, so we’re seeing more customers do more deals with us and we’re getting more share-of-wallet. Which is really encouraging, and you can sort of, the numbers show that in being up 19% deliveries in April. So really encouraged about what we’re seeing and really encouraged, about our ability to take share in this market.
Kyle Joseph: Great. Thanks very much for taking my questions.
Douglas Lindsay: Thanks, Kyle.
Operator: Thank you. The next question is from Scott Ciccarelli with Truist. Your line is open.
Joseph Civello: Hi, guys. This is Joe on for Scott. I just had a quick question. Lease write-offs came in a little bit better than we were expecting. You guys kept, obviously, the 67% for the year. Just wanted to know if you could give a little color on the trajectory expecting through 2024?
Kelly Wall: Yes, Joe. It’s Kelly. As we said on the call, we continue to expect write-offs for the full year to be between 6% and 7%. And you can kind of key in on what Douglas was saying earlier, right? The customer does continue to be challenged year-over-year, what we’re seeing though in terms of the impact of write-offs is the increasing mix of the lease portfolio, including e-com originated deals. But as you noted, we’re forming in line with expectations and continue to feel really good about our forecast for the full year.
Douglas Lindsay: Yes, the other thing I was going to add is that, – sorry if you look at our 32-plus day delinquency rate in our investor presentation. We’ve seen sequential improvement in our trends from Q4 as with our write-offs and that same presentation, you’ll see sequential improvement. So while we naturally see that during tax season, we think those trends are encouraging in line with what we expect.
Joseph Civello: Got you. And then just wanted to check in on the kind of long-term thoughts of like 5% to 6% long-term, do that still make sense?
Douglas Lindsay: Yes, I think long-term, that’s in line with our general expectations. What I’d say is a lot will largely depend as we get into 2025 on the mix of the portfolio. So again, how much is originated through our e-com channel versus in-store. But we’re not seeing anything at this point that leads us to believe any different Q4.
Joseph Civello: Got it. Thanks so much.
Operator: Thank you. The next question is from Anthony Chukumba with Loop Capital Markets. Your line is open.
Anthony Chukumba: Thank you. And great job pronouncing my last name correctly. So I guess my first question, two questions on BrandsMart. First one, I know it’s still relatively early, but we’d love to, and I know there’s a lot of noise, because obviously it’s just tough right now in terms of consumer demand, for major appliances and consumer electronics. But how is the Augusta, Georgia store performing relative to your expectation?
