Operator: Your next question comes from Tom Nikic with Wedbush Securities.
Tom Nikic: Hey, everybody. Thanks for taking my question. James, I want to ask about the customer count. So I think quarter-over-quarter, it’s been down each of the last two quarters. When do we think about that kind of bottoming and starting to get back to growth again?
James Reinhart: Yeah. Hey, Tom. Yeah. I mean, I think, you should start to see that inflect this year, as we reinvest in growth and some of the sort of key initiatives that we’re working on. I think what you had, while you saw the last couple of quarters where they were is, we had very successful in high spend quarters throughout 2021. The business was really growing at a nice clip. And so you’re sort of lapping some of that as you got into the back half of 2022 on top of which you were spending a lot less in marketing. And so now I think as we turn the page into 2023, feel like the macro environment is more stable, we feel very comfortable spending into that with the economics that we’re seeing and so you should start to see that improve as we move through this year.
Tom Nikic: Got it. And the quasi follow-up there, obviously, the budget shopper has been pressured lately. But how do you think about potential trade down and maybe a higher end consumer who’s never shopped resale before, never shopped your business before potentially becoming more discount hungry and gravitating to thredUp?
James Reinhart: I’ll give you a quasi answer to your quasi follow-up. I mean, I think, we’ve been clear, right, like, I think the conditions for resale in 2023 are promising. If you start to see retailer promotions come down and you still feel like the shopper is looking for value. I think that intersection of those two things suggests that resell could really do quite well in this environment. And some of that is from trade down as you suggest and some of that is just prices getting more normalized in traditional retail context means that it’s just going to be more expensive and so then the value proposition for retail should be stronger. And so that’s how we think the setup in 2023 looks and we’ll see whether it plays out that way. But I think we’re feeling cautiously optimistic.
Tom Nikic: Sounds good. Thanks everybody and best luck this year.
James Reinhart: Thanks.
Operator: Your next question comes from Rick Patel with Raymond James. Please go ahead.
Rick Patel: Hey, guys. Well done on the progress. I have a follow-up to Tom’s last question on the consumer. So as you look at how the first quarter is shaping up versus how you performed in the fourth quarter, any key differences to highlight in terms of behavior — behavioral changes and what your — maybe elaborate on what your expectations are for the consumer for the rest of the year?
James Reinhart: Yeah. Rick, I mean, I think, we had this conversation a few months ago, I thought retailer inventories would have been a little cleaner into Q1, but I still think based on the commentary across the apparel sector, right, inventories are still elevated in lots of places. So you’re still seeing that promotional environment creates sort of downward pressure on price. So I think that’s really in Q1 of a continuation of the themes of last year. But I would say that, like, it’s clear that there is an end in sight right around this. And so I think the shopper and the value proposition at thredUp is going to be more attractive as we sequentially move through the year. But I don’t think the conditions have changed meaningfully on the inventory environment.
