Alex Fuhrman: Hey, guys. Thanks for taking my question. Really nice to see the very strong GMB growth at Acima, especially in spite of lower approval rates here. Can you give us a little bit more color on what’s been driving the lower approval rates? And if you were to see more meaningful trade-down later this year or into next year, especially, perhaps as a knock-on effect, if the credit card fee issue goes through, would you start to see approval rates perhaps then start to rise?
Mitch Fadel: Yeah. Good question, Alex. It certainly could, depending how much trade-down happens, because you’re certainly going to be approving those that come in at the top of the funnel, so to speak. So it certainly could. And of course, all of that, when you think about underwriting, all varies, depending on the category, depending on the retail partner, we’re very targeted when we look at underwriting and our underwriting committee, which includes all the way up to Fannie and myself. Like I said, there may be one retailer foreseeing more trade-down. They might have had a higher approval rate in the first quarter than last year. That’s accumulation of everybody – think would we say down 130 basis points the approval rate.
So it’s never all across the board. It’s very targeted process and certainly where we have the ability to target down every single store. So – and our underwriting team is so good that it’s that target is not a blanket certainly on the Acima side that’s part of all that benefit we’re going to get from Acima and those acceptance now conversion. So — but certainly more trade down, I hope that number performance you know of the customer as payments come in that affected too the customer performance not just trade down are — how well we’re collecting on our current portfolio impacts and so forth. So think of all of that will matter. And we’ll just — we’ll be diligent. It’s always a balance. We’ve got plenty of demand but we need to keep our and certainly we could add higher GMV if we were kind of running wide open so to speak will we wouldn’t do that.
So it’s a balance.
Alex Fuhrman: Okay. Thank you very much. Appreciate that.
Mitch Fadel: Thanks, Alex.
Operator: Thank you. One moment for our next question. Our last question comes from Anthony Chukumba at Loop Capital Markets.
Anthony Chukumba: Good morning. Thanks for squeezing my question in. So I was just looking back at your original guidance for 2024 what you’ve reiterated and certainly seems like you’re off to a pretty good start. You are anticipating three Fed rate cuts now it looks like that’s certainly probably not going to happen. Maybe you don’t even get any. Does that give you any sort of pause – you know give given that it really looks like inflation is sort of higher for longer we may not get the Fed rate cuts. How do you think about that?
Fahmi Karam: Yes, good morning. Thanks for the question. The new version of our forecast doesn’t include three rate cuts any longer and pretty consistent with how the market is feeling after the last few data points. But given that we’ve given a $0.5 range to our EPS guide we didn’t feel that we needed to adjust for it’s up $0.08 from an EPS standpoint of having three rate cuts a 25 basis points a piece. So nothing really there from an EPS standpoint as far as interest expense goes we can we can definitely absorb it inside our range. As far as any impact to kind of interest rates being higher for longer, I think, the consumer as we stated has been very resilient to the environment today. So we expect them to continue to be resilient going forward.
Going back to maybe the last question from Alex on why approval rates are a little bit on the lower end. We’re very mindful of the environment we’re in and the uncertainty in the environment and we’re being very cautious in our approach. And the great part about it is we’re able to grow GMV by 20% and still have that cautious approach. So the consumer is very resilient and we expect them to continue to be resilient funding.
Mitch Fadel: I think – guidance for that Anthony is that yes that the range is wide enough to absorb any sense without any rate cuts as well as the start we got off to in the first quarter as well obviously helps offset that.
Anthony Chukumba: Got it. Okay. And so you know it’s about just can you just remind us like what percentage of your debt is floating rate debt? I am just looking to adjust your got your guide to $105 million to $150 million thousand net
