Unidentified Analyst: And then lastly, does the updated guidance for sales really assume performance kind of in line with the exit rate? Or are you contemplating any more sort of incremental macroeconomic pressure?
Tim Martin: I would say that our guidance contemplates a couple of different things. One is the trend that we’ve seen going through the third quarter, the uncertainty of the overall macroeconomic environment and our desire to maintain cleanliness in our inventory position and set us up for 2023 that we’re pretty optimistic about where our product development as we roll into spring will position us well.
Operator: Our next question is from Mark Altschwager with Baird. Please proceed with your question.
Unidentified Analyst: This is on for Mark. Thank you for taking our questions. Can you give us any commentary on your Black Friday performance and how that informs your deal on the holiday season? And then with respect to the updated guidance, what are the underlying assumptions that you’ve baked in for January as you cycle last year’s supply chain disruptions?
Tim Martin: I’ll take the first part of the question related to Black Friday. What we did see is, as Lisa mentioned, we are seeing the customer respond to some of the newness. Unfortunately, given our inventory position, we were still very promotional throughout the holiday. We did see actually a pretty surprising and slightly better than we expected response in store. But I think as Lisa mentioned, the way the new product is resonating in the stores has been well received by the customer. But again, we had to be highly promotional to continue to clear through product. Our January expectations are that the trends that we’ve been dealing with over the last quarter would retain itself through the holiday, less around the supply chain disruption that really didn’t impact us all that much as a comparable benefit. So we’ve kind of just assumed basically the current trend of the business will carry forward in our guidance.
Unidentified Analyst: Okay. And — then if I could ask one more. When you’re approaching 2023 internally, what scenarios are you baking into your operational planning?
Tim Martin: Sorry, can you repeat that question? I just want to make sure I follow you.
Unidentified Analyst: Yes. So not asking about 2023 guidance when you’re approaching here internally, what macro scenarios are you baking into your operational planning?
Tim Martin: We maintain as much flexibility as we can right now with the — given the uncertainties in the overall macroeconomic environment. We’re going to continue to focus on maintaining our inventory investments in line with the demand trends. And as Lisa mentioned, by keeping a little bit more open in our open-to-buy process, it allows us flexibility to throttle up or throttle back as needed to react to the demand.
Operator: Our next question is from Alex Stratton with Morgan Stanley. Please proceed with your question.
Unidentified Analyst: This is Kim — on for Alex Stratton. I was wondering how you view the help of the consumer. Are you seeing maybe any different impacts in terms of income level? And are you seeing any signs of trade down?
Lisa Harper: For the first 2 quarters of ’22, we only saw an impact to our lower income customer and that was pretty consistent. And for the first time in the third quarter, we saw an impact through at all income levels. I don’t have the data for fourth quarter, but we’ll talk about that as we move — at our next call. But for the first time, as I mentioned, in the third quarter, we did see it impact all income levels.
Tim Martin: And then to answer your question about if the customer is trading down, we have not seen them actively trading down when the product is right and they’re responding to the newness. We’ve seen some strong response there regardless of price. However, we have been so highly promotional that our average unit retail that is lower than it has been historically. So she hasn’t actually had the trade down.
