Adrienne Yih: It does, yes.
Martin Waters: TJ, do you want to take the second part?
TJ Johnson: Yes. Adrienne, if I understood your question right on inventories, let me try to address how it’s been flowing. So, you are correct that coming out of last year and the timing of when we received inventory due to supply chain challenges that certainly made fourth quarter last year difficult. As we move into 2022, and supply chain started to get incrementally better from a flow perspective, it gave us the confidence that we could start taking merchandise off of airplanes and start putting it on boats. That did cause dislocation in terms of when it shows up on our balance sheet, to your point, because it starts to show up in, in transit before it’s actually received in the distribution center as it’s coming here on boats, lead times there, obviously, are longer than airplanes.
So, we’ve been working against that all year long from a balance sheet perspective. The good news is being a financially stable company, generating our own cash and having a strong balance sheet. It gave us the flexibility to do that and start to lower overall costs and increase our flexibility, as Martin mentioned, earlier. As we think about exiting this year, we do think the majority of that timing difference on inventory receipt has started to work its way through the system. We think we will end this year with inventories on a dollar basis on the balance sheet up in the mid-single-digit range. Again, from a model mix perspective, we take that into account. We think inventories will actually be down mid-single digits. And we start to fully anniversary it as we get into early 2023.
So, we think we have the opportunity to exit 2022 with — and enter spring with inventory dollars down in the mid-single digits when we take into account model mix. Now having said that, we go into 2023, we do believe having that inventory flexibility, having the flexibility to chase goods, start to get back closer to that 60-40 mix, as Martin mentioned, gives us the opportunity to chase winners, cut losers and be much more efficient with our inventory. I think additionally, we have opportunity as we enter into next year to start to see incrementally a little bit of improvement on inventory turnover, as I mentioned because of the timing of inventory and being more in position. So entering next year with inventory levels down and the ability to chase than where we have been in the last 12 months.
Adrienne Yih: That’s extremely helpful. Just two housekeeping. What was deleverage in the quarter? And what was digital percent of sales? Thank you very much and best of luck for holiday.
Martin Waters: What was deleveraged in the quarter on margin
Adrienne Yih: What was the basis points, yes.
Martin Waters: And what was digital. So digital, Kevin, do you want to destroy digital percent of sales.
TJ Johnson: The B&O deleverage in the quarter was 80 basis points. And then the percent of sales, we’ll have to do some math here. We’ll get that.
Martin Waters: It’s high 30s. In the high 30s percent.
Adrienne Yih: Perfect. Thank you, gentlemen, and best of luck for holiday.
Martin Waters: Thank you. Should we take one more question before we call it a morning.
Operator: Thank you. Our last question comes from Jonna Kim with Cowen. Your line is open.
Jonna Kim: Just curious on Adore Me acquisition, congratulations on the deal. Any ways you can leverage that business for next year as you think about modernizing Victoria’s Secret? Any comment would be helpful.
