Michael Henry: Well, the largest sales weeks of the quarter anticipated to be right around the Easter holiday, that’s where most of the spring breaks are but the first quarter is the smallest quarter of the year from a revenue standpoint. So there isn’t anything anywhere near approaching the back-to-school season for us or the holiday season, obviously. But we would expect to see a little bit of pull forward into March this year because of the earlier Easter and then it’s likely that April will be tough in the early part of April because we’re going up against a later Easter. Beyond that, you’re just in the spring/summer season, kids get out of school. It will really be towards the back half of July, where back-to-school comes into play, that we should see some pull of sales into the second quarter because of the impact of the 53rd week at the end of fiscal ’23, we do anticipate some revenue shift from Q3 into Q2 as a result of that timing shift because of the extra week in fiscal ’23, to the tune of somewhere around $12 million was our estimate of shift between Q3 and Q2.
So that would be something that’s a little different than history. And because of that quirky once every six or seven years of that 53rd week, it can create some distortions between the quarters.
Mitch Kummetz: And then last question, just on the assortments, you guys mentioned that private label is performing better than third-party. Can you maybe elaborate on that? Or what are the reasons for that? Is that really just maybe a bit of a trade down just in terms of price points? Or — and then you also talked about on the third-party assortment, maybe sort of pivoting on some brands. Can you talk about maybe — I don’t know if you want to give specifics on the brands, but kind of what’s the thinking behind the need to kind of pivot a little bit on that third-party assortment. It’s really two questions in one — yes, go ahead.
Hezy Shaked: Let me answer this. A couple of things. First, we can’t talk too much about the private label versus the third party at this stage because this is something that we’re looking very carefully at analyzing it and taking action on it as we speak. As Mike mentioned, we’re going to have some new brands coming in, some exciting stuff. But it’s a little too early for us to give you more information than that. I hope that by the next call that we have, we’ll be able to look at things and be more clear.
Operator: Our next question will come from Jeff Van Sinderen with B. Riley.
Richard Magnusen: Yes. This is Richard Magnusen, calling in for Jeff Van Sinderen. So one of my questions is as you go into the first quarter here, with respect to — compared to the fourth quarter, what more are you seeing in the buying habits of consumers and their inclination towards promotional merchandise?
Michael Henry: I wouldn’t say that we’ve seen a distortion towards promotional merchandise per se. We’re actually pleasantly surprised at the improvement in product margins that we’re seeing so far in the first quarter. So we’re not seeing that our relative percentage of what we’ll call reg price business versus clearance has shifted in some meaningful way that tells us there’s a completely different consumer demand profile there. It’s — clearance has always been a pretty small overall percentage of our total business, and it remains so. So it hasn’t jumped up in to a huge degree, if that’s getting at your question.
Richard Magnusen: So I mean what you’ve seen is maybe a little difference in shift, but nothing really noticeable towards any promotional inclination, right?
Michael Henry: Not in terms of how it’s impacting our business. Again, our product margins are above where they were at this time last year. So we’re seeing stronger performance in our reg price business at this stage.
Richard Magnusen: And then what more can you tell us about any particular trends you’re seeing for spring? And then what areas of inventory, if any, do you feel like you’re really heavier light in with regards to your expectations for spring?
Michael Henry: The assortment is structured similar to what you would expect from us in the spring season. Swim, shorts, graphic tees, denim, are always key categories for us at this time of year. And we’re set that way, if you go and view a store right now. You’ll see we’re very much set for warm weather spring, spring break type of product categories, and that’s typical for us. The one thing that we did do a little better leading into this year that I’ve seen versus our past experience. We were a little more thoughtful about how we transitioned from winter to spring. We intentionally held on to certain long sweater and jacket options in certain markets as opposed to shifting so hard 100% to the spring assortment everywhere. That also helped us carry through some of the difficult parts of February. But other than that, there aren’t any major categorical shifts in our assortment than what you’ve seen from us in the spring typically.
Operator: And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Mike Henry for any closing remarks. Please go ahead.
Michael Henry: Thank you, Chad. Thank you all for joining us on our call today. We look forward to sharing our first quarter results with you in early June. Have a good evening.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
