Michael Schwindle: Broadly, as we guide it broadly, we’re expecting inventory to be relatively flat on a yearend over year end basis in fiscal 2025. However, given what’s going on underneath the surface that will actually represent a bit of an improvement. We are doing a fairly substantial merchandise shift across our channels as part of launching New Day, which will happen midyear. Additionally, there might be some additional unit to turnover improvements that I think will be under the surface beyond that as well. And we’ll see as we go forward broadly, you should start to see sales and inventory patterns run similarly on the other side of that. But we think that it’ll actually, yearend flat will be actually some structural improvement under the hood.
Eric Beder: Okay. You talked about looking at the, while you’re adding storage, you also talked about looking at the composition of the storage you have. What do you have in terms of lease expirations and flexibility to do that now and going forward?
Michael Schwindle: That’s a great question. Every year we have a body of stores come up for renewal. As we are approaching landlords at this juncture, we are finding a lot of receptivity to renegotiating lease terms as we move forward. Broadly, there’s a couple of closures that will happen this year on the full-line side, but broadly, we’re very happy with the fleet as it is and are looking to continue to extend our stays. But as Jackie mentioned, there’s a body of work that we will be doing in our stores this coming year as part of New Day, so there’ll be a lot of refreshing going on in our stores, so that’s part of the conversation as well. We’ve started to have initial conversations with landlords, and I think the landlords are excited about what we’re doing and the outlook on both product and store refreshes.
Eric Beder: Great. Is the goal to have the refreshes done at the start of New Day, or is that going to be an ongoing process? How should we be thinking about that?
Michael Schwindle: I think the short answer to your question is yes. This is one of those that with all of the different refreshes across all of the different stores, it will not all exactly synchronize to the day of product arriving in the stores. But we’re working very diligently as a team to make sure that everything is coordinated as tightly as possible.
Eric Beder: Okay. And when we look at, you’ve kind of hinted around this, what should we be thinking in terms of the categories that are going to be in the stores? Are we going to see less categories and a deeper focus? I think you’ve kind of implied that, but I’d like to get kind of a confirm and beyond travel, what are the key core categories that you want to be in?
Jacqueline Ardrey: Yes, that’s a great question, Eric, and I think it will vary a little bit from the outlet segment to the full-line segment. So in outlet, you’ll largely see that the categories remain unchanged though, we are looking obviously, we have a lot of tests that are going on right now from marketing, store merchandising, price points, discounts, everything. A lot of tests around the outlet fleet now, but largely, you won’t see a lot of difference in terms of product category breadth. You will likely see some difference in offer breadth and reduction there. And then on the full-line side, really in the stores, there will be more of a focus on travel and bags. Really that’s where we looked at the data, that is the place where we’re really owed business is bags, but as much backpacks.
I mean, backpacks we’ve kind of maintained our business over the years, but true handbags, belt bags, some of those little more fashionable items, we have not been as strong. So you’ll definitely see our commitment to travel, which is really the core of our brand, but then some extension into bags and potentially some unproductive categories moving out of the full-line stores.
Eric Beder: Okay. And last one on Pura Vida. So you mentioned opening some more stores in Pura Vida. Obviously, the sales have been tough. Are you still seeing the strong results in the stores that you have opened to mix and I guess the surrounding areas to justify more stores? And what would be different on the stores you’re opening now than the ones you did the first two or three?
Jacqueline Ardrey: Yes, that’s a great question. I’ll take the first part and then I’ll let Michael add if there’s anything. So we still see, this is a — the Pura Vida performance is largely. It’s almost three different businesses in terms of the category results or the channel results and retail is still strong and very profitable. And ecommerce really is, because so much of the business is in ecommerce. And the minute that we hit increased costs that affect our new customer acquisition rate, you definitely see challenges in the top line. So, but we still feel strongly about the stores. Some of the stores that we opened last year are really good. So we’re kind of looking at how do we take that specific model and find the places that are going to produce those same results. So that’s really what we’re doing right now. Anything to add?
Michael Schwindle: I would add that we’ve seen some really good success in tourist oriented areas. And as we look forward and are mapping out the next couple of stores, that’s a bit where our focus is. I think the upside from that, from a broader branding and business perspective is it gives you a much bigger footprint nationally than it does just in the local market, because you’re tapping people who are coming into that area from all over the country.
Eric Beder: Okay. All right, guys, I look forward to seeing this all in July. Thank you.
Jacqueline Ardrey: Thanks, Eric.
Michael Schwindle: Thank you, Eric.
Operator: [Operator Instructions] With no further questions, I would like to hand the conference back over to Jackie for closing remarks.
