Richard Hayne: Okay, Janet. I’m going to ask Sheila talk about first because I know she’s really excited about Free People Movement and is planning to open a lot of new stores. Sheila?
Sheila Harrington: Yes. So Janet, we have a strong pipeline currently ready to go for next year. So 25, we are saying at least 25. I think that’s the most amount of stores, at least in my growth of the Free People brand family that we’ve experienced. So I would say that we see that growth, knock on wood, continuing for several years to come, frankly, as we explore new markets. We’re actually in a couple of markets that Free People is not in with FP Movement as well. And this isn’t at the cost of the growth of Free People. As I spoke about, we have a lot of growth internationally and digitally still to do with the Free People brand itself. So, we see both brands growing independently, obviously, FP Movement at an accelerated level towards our $1 billion goal.
As far as the slowdown of Free People, Q3 ended the 14th quarter of sequential positive FP, Retail segment growth, 27 if we exclude that one quarter a couple of years ago in fiscal ‘21. So we’re just up against more challenging positive comparisons. And frankly, I feel extremely strong that the buying teams, the design teams and our marketing teams are all in the pulse of the right fashion trends. And so, we remain extremely optimistic and positive going into the fourth quarter. I think this time of year is always — want to pause on, but we’re seeing very strong results to date, and we have no reason to believe our momentum is going to be interrupted.
Frank Conforti: Janet, I just want to add in real quick on the FP Movement stores. Honestly, some really impressive stats. When you think about the fact that it’s still a very young brand that’s growing in an awareness, and the fact that their sales and profit productivity is on par with the Free People brand in such early days to have that strength and success in those doors really leaves us very confident and excited about that store growth. And that’s why — Sheila talked about 25 at least, if not more, just because we’ve been really impressed over the first couple of years at how well those stores have performed, especially given the continued awareness that we’re starting to build upon, but obviously, much less than where the Free People collection brand stands.
Richard Hayne: And Janet, I can tell you, we all sit around and talk a good deal about what you — what we have discussed as a slight, and again, slight slowdown in October. And we threw out there some potential reasons like the weather, like the war, like the student loan repayment and like a harder comparisons. And I think we’ve just kind of said that we don’t think necessarily there are any of them. Of course, the heavier — the harder comparisons are real. And so, that’s got to be a factor. Student loans, how could that possibly be positive? It only could steal money away from purchasing. So, that could be a factor. Quite frankly, we just can’t come up with one that we feel is so compelling that we can attribute this slight slowdown to it.
What I will tell you is that we’re very convinced given the behavior of the customer that what it isn’t, is the beginning of the dreaded R word. We don’t think there’s any sense that we can see in our business of the consumer pulling back. She’s very engaged with the brand, she’s buying full price and she’s buying fashion. And those are very unusual in my experience, if it were to beginning of recession. So I don’t think that we should fret about that. I think our business is very healthy. The customer is healthy. And we believe that we’re going to have an excellent holiday season.
Operator: Our last question will come from the line of Marni Shapiro with The Retail Tracker?
Marni Shapiro: Thank you for taking my call under the wire. And so I don’t forget, happy Black Friday to everybody. Dave, I have a question for you on Nuuly. Congratulations on turning to profitability, and starting a new business is very difficult. And one of the most expensive parts of that is the customer acquisition cost. So I’m curious if we can dig into that just a little bit. Have they come down at all? Are they high or low relative to the industry? And are you able to tap into or draft off of really, I guess, Free People and Anthro to bring customers into Nuuly just a little what that looks like?
Dave Hayne: Yes. Sure, Marni. Thanks for the question, and thanks for all the kind words. Our customer acquisition costs have been — over the last few years, actually have been a lot less than what we originally thought they were going to be when we originally started the business. So, we’ve been very happy about that. I think our team has been very creative about how they go about marketing. They’ve been leveraging a lot of part of mouth, which has been something that’s been a huge driver for the business, putting in place things like referral programs that allow people to incentivize that word of mouth has been a big driver for us. We do spend across some social platforms. And in those platforms, we are spending creatively across things like ambassador programs and influencer programs, so I would say that we’ve been very happy with what our customer acquisition costs look like.
