Operator: Our next question comes from Omar Saad with Evercore Partners. Your line is open.
Omar Saad: Good morning. Thank you for taking my question. I was hoping just a couple of quick follow-ups. I hope you guys maybe talk a little bit more about performance across some of your store formats and channels off-mall versus mall the store of the future. Then maybe also something you mentioned at Investor Day, but I don’t hear an update on the marketplace strategy. Thanks.
Martin Waters: Yes, good questions. Thank you for that. So, let’s talk about real estate. So, Store of the Future pilots, the first pilots that we opened that have been open for a reasonable period of time, are performing up high single digit relative to their control group. So up high single digits relative to their control group. So that’s good. The first stores that we opened in the new format were in off-mall locations. And those have been good. All of them are projecting to be profitable, which is good news, with particular strength in the stores that are in outlets. So, I don’t mean discount outlets. I mean off-mall outlet locations where we put a full-price store. Those have been particularly good and there are a number of those across the United States of America, where we see opportunity.
So, as it relates to the real estate strategy of having a higher participation off-mall, we feel really good about where we are. As it relates to the deterioration of the fleet in malls that are vulnerable, no new news. The situation hasn’t gotten any better. The situation hasn’t gotten any worse. It’s about where we expect it to be. So, we’re projecting that for the year ahead, we’ll have 15 to 20 new stores, all of which will be in Store of the Future and about 50 renovations that will move some of our better and bigger higher-performing stores from the current old format to new store of the future format. Incidentally, in many of those occasions, not all of them, but many of those occasions, we take the opportunity to downsize sometimes bring PINK from being stand-alone into the box, which leads to higher sales densities and more efficiency in terms of the way that we run the operation.
So, we feel pretty good about that. And there’s about $100 million more capital going into our store’s organization, our stores late this year than we had in prior year. So, I hope that helps in terms of format. The second question was…
Omar Saad: Marketplace.
Martin Waters: Yes. Thank you. Curated marketplace. So, when we started working with parties, I’m going to say a couple of years ago, it was a little bit of across the board, lots of different brands, particularly too many brands, frankly. When the new management team took over, we determined that the marketplace should be curated and it should be curated on the basis of three things. One, does this brand get us access to a category of merchandise where we’re currently underweight; number two, does this third-party relationship get us access to a customer base where we’re currently underway; and number three, does this third-party relationship bring a halo to the overall house of Victoria. And we feel really good about where we are now in the curation.
