On the other side of the equation, on the discount side, we are playing around with the discounts, as you heard us mention, we do anticipate those discounts to pick up a little bit as we get into — well, third quarter was slightly higher than it was in the second quarter, and we expect slightly higher in the fourth quarter than in third quarter. We’re talking in 100 basis points here, 100 basis points there. These aren’t big numbers or big changes in terms of what it’s going to do to our net sales off of MSRP. Again, we’ve done a lot of A/B testing and let the data drive this. So when you see the gross margins that I provided earlier, you could back into fourth quarter pretty easily, right, because Q3 is virtually done. It’s a negligible impact on the overall P&L at the — from MSRP to net sales.
So hopefully, that provides a little bit of color.
Matt Koranda: Yeah, absolutely. Very helpful, Keith. Thank you. And then just last one, if I could sneak one more in. On the showroom growth plans heading into 2025, obviously, you’re not asking for guidance here, but I’m assuming those plans need to be pretty well baked at this point in the year, just given the lease timing and everything like that. Just wondering how nimble do you feel like you can be on showroom openings heading into next year if the environment changes for the better or for the worse? Just curious how to think about nimbleness there and plans for next year roughly?
Mary Fox: Yeah. Hi, Matt, yeah, thank you for the question. We continue to look at our real estate strategy all the time. And I think one of the success factors we’ve always had is around that nimbleness, picking up amazing locations or even slowing down openings. So it will be similar to this year is where we’re thinking. But obviously, we’ll share more as the year finalizes, because we’re still working on some of the leases for next year. I think what’s super important as we think about productivity of the showroom if I think about just this year in the new fleet for this year, they’re performing above last year. You know, our numbers are super strong in terms of payback in just under a year. So it’s a very strong model that we have, and that’s the growth on the year before.
And we’re planning for that to continue to grow for next year. So I think we, unlike many others, we have very small showrooms that are mighty, they drive incredible revenue off a very small space and really also help us with what we see as our superpower, which is that demo and really being able to showcase why Lovesac is just so different to anyone else because it is designed for life and gives you that flexibility. So again, we’ll share more at the end of the year, but you can expect very similar to where we have been, and we will continue to obviously watch the macros.
Keith Siegner: Just two quick numbers for you as well. We had — we’re projecting or we had, I should say, nine showroom openings in the third quarter. We’ve got two in the first period of Q4. We did have one closure in Q3. Most of these are the closures are relocated. So it’s funny for me having come from where it was in consumer in the past where it feels like 90% of all the opens happened in the last month of the year. We’re actually well ahead of it here. And the same thing goes for next year, stay ahead of it, be thoughtful, be objective in measuring. The fact that we are omni-channel, and we use them as much as awareness drivers really creates a very exciting opportunity for me as well. So disciplined approach to 25%, as Mary said — and those are some extra numbers for the rest of this year as well.
