Brooke Roach: Thank you very much. I’ll pass it on.
Operator: Your next question is from the line of Oliver Chen with Cowen. Your line is open.
Oliver Chen: Hi, Katrina and Bobby. Thank you. Regarding the carryover fall product, what’s the nature of the product that you’re — you still need to work through at this current time? And then as we zoom out a little bit on Old Navy, what’s your hypothesis for a few things that need to be done strategically, just to drive more consistent comps and margins? You mentioned balancing the assortment as one, and I’m sure speed and agility and fabric platforming is an opportunity, too. Thanks.
Katrina O’Connell: Yes. Sure, Oliver. I’ll take the content and then maybe, Bobby, I don’t know if you want to speak to the Old Navy piece. On the content side, it’s different by brand. But fundamentally, as we think about summer inventory that carried into fall, that was a margin drain in the second quarter — in the third quarter, and then we had fall inventory we were clearing that now is carrying into holiday. We do feel like with holiday buys being down, we will stop that from continuing, but we need to focus on the fall product that’s carried over. It’s really various things. There’s nothing — no pockets in particular. It’s really more about the overall inventory being higher than the relative demand and our ability to actually clear through that, given sort of the customer dynamics.
So we’re focused on clearing through that now, though, and that is part of why we do believe the margins will be pressured in fourth quarter. And again, we have a lot less holidays, so we look to have that cycle stop as we head into first quarter of next year. So, I don’t know, Bobby, do you want to comment on Old Navy?
Bobby Martin: Well, I mean, I think you put your finger on those things that you would expect maybe is and challenging us, and we clearly let an assortment get broader than it really needs to be. And in some cases, again, we’re missing a great deal of depth. So, the course correction there is really just getting back to the fundamentals and putting the right lens on inventory. So, there’s a much, much, much greater focus looking at sell-through expectations, more of a life cycle mindset around the product so that we’re continuing to keep the freshness and the newness there that referred to Haio one of the things that he has done through the team and again really happy right now with the things that are taking place is call us with mills and partners where we know that we’ve got an opportunity for greater collaboration.
Same responsive capabilities that right now have been helping Gap brand, Old Navy will be able to leverage on. So, there’s a lot more creative, I think, insight from the consumer and being able to deliver on it. I’ll give you a good example that’s even going on right now. In the brand that shows what happens when we do get it right. Back-to-office is that the brand hopes to really own. But even right now, we have a Pixie and a Stevie pant that’s offered in a skinny leg player, wide leg, different fabrications and patterns, all very, very, very popular. That’s the message that the consumer is telling us about the sensibility and fashion that she’s looking for and, again, certainly staying really sharp on our basics. But in particular, being able to serve, again, a wide range of customer.
