We’re happy what we saw in the back half of ’22 when people were able to start to gather and get together again. And so we feel that ’23 and beyond is really the time to put the marketing money behind Gymboree in a big way. And then we also spoke about Sugar & Jade, which is the smallest of the brands. And certainly, we’ve perfected the product, we believe, with our best-in-class design team. And now what Sugar & Jade needs is brand awareness and marketing spend behind it. So let me turn it over to Maegan to add what she’d like to, to that.
Maegan Markee: Yes. I think from a spend balance perspective, going back to your question, just around closing the stores and then on marketing investment, as we optimize the fleet and close the stores, we worked very closely with the real estate team here to make sure that we’re balancing our marketing investment to really kind of hone in on those key areas that we’re closing stores. So we’re making sure that our spend is balanced in those DMAs, those regions. So that we’re really growing brand awareness without having to utilize a brick-and-mortar store front. The tactics are obviously primarily digital in nature, and that’s where we’re pushing the customer. As we close the store, we push here to the e-comm business. And again, we really focus our investment in those key areas where we’re walking away from stores.
From a tactic perspective, we’re utilizing things like paid search, paid social and Amazon where she’s going for brand discovery. So we have a pretty robust strategy around how we work in partnership as we kind of optimize our fleet and make sure our marketing investment is in the right places.
Operator: And we’ll take our next question from Marni Shapiro of Retail Tracker.
Marni Shapiro: Maegan the marketing over the holidays was truly outstanding. Actually, Sheamus, I just wanted to touch back on a couple of things you said. I think you said something about inventory, you were liquidating inventory in the first half. As in liquidating it or just selling it and moving through it. I just want to clarify that point because liquidating felt like a strong word there.
Sheamus Toal: Yes. Marni, thanks for the question. Yes, just to clarify that, what I meant by that comment was we’re selling it through in our normal process. So it’s not like a liquidation sale, but as we sell through that higher unit cost inventory, we are going to absorb that higher cost inventory and our cost of sales. So I was just trying to reference that, that will flow through as part of our normal process. It is not something out of the ordinary where we’re running liquidation events or anything like that.
Marni Shapiro: Okay. Great. And then can you just also remind us, I think it was last — it was back-to-school ’22 where you had — where selling through pack and hold from ’21 when back-to-school wasn’t really happening. And those units were purchased at lower cotton costs. So as we come into the back-to-school period, which for you guys is August and into September, depending on the region, will you be selling through some lower cost AUC plus the new lower cost — some higher-cost AUC and some lower-cost AUC or you won’t have quite the same compare on the product because of the pack and hold, meaning like the lift on the AUC improvement won’t be as big in the third quarter?
