Mark Altschwager: And a quick follow-up on the product front. You’re expanding the core collection and I was wondering if you could contextualize that a bit more. How many unique styles do you have today? Where do you expect that to go? You currently have that nice balance between the $95 price point and the higher price points. I’m curious how you expect that price mix to evolve as you expand the core.
Neil Blumenthal: So as you know, we’re sort of known for that $95 price point and our general philosophy around pricing for frames and lenses is how can we deliver exceptional value — so charge a fraction of what our competitors charge. And we find we’re able to do that, whether it’s at $95, $145, $175, $195. — you’ll continue to see sort of more of a distribution across those price points. We now have roughly 1,000 SKUs and continue to launch new collections. We anticipate launching 20 new collections this year. One of the nice things about having direct relationships with our customers is that we’re not beholden to the fashion calendar. So, we’re able to sort of launch collections when we think it will have the biggest impact on our customers.
And similarly, having sort of central fulfillment across our two labs in Sloatsburg, New York and Las Vegas also enables us to be really thoughtful around inventory, given that we don’t need to maintain large inventories in our optical shops for our customers to take away products like an apparel retailer. We’ll continue to introduce newness. And when we think about newness, it’s both new styles, but also new color ways and sort of the existing sort of beloved styles that we’ve created over the years and our merchandising and planning team is just focused every single day on the customer data that we have at our disposal, thanks to our direct-to-consumer model.
Mark Altschwager: Thanks again.
Operator: Thank you. We now have Oliver Chen from Cowen.
Oliver Chen: Hi Neil, David and Steve. Nice quarter. Regarding the marketing spend, it’s been remarkable in terms of the efficiency you’ve driven there. As we look forward, what are you seeing in terms of marketing effectiveness and performance marketing and things that you’re monitoring as that interplays with what you’re getting out of customer acquisition when you grow stores? A second question, you mentioned an opportunity to increase younger customers, would love you to elaborate on that and what you see ahead and why. And third question, on the product assortment, it sounds like you’re offering a lot more value to the earlier question, what might happen with customer lifetime value and/or acquisition relative to retention.
David Gilboa: Thanks, Oliver. And yes, we’ve been excited to see some of the efficiency gains that we’ve achieved on the marketing front. It’s really coming from a few areas. So one is that as we pulled back on spend, we’ve allocated those dollars to the most efficient channels. And as a direct-to-consumer brand, we get immediate signals from our customers around what’s working and what’s not, and we can constantly optimize our tactics and strategies. The second is that media rates have declined. And so for the same dollars that we’re spending for video ads or display or SEM we’re reaching more customers for the same dollars. And then I think our team has just done a great job on the creative front with new interesting collections, new collaborations that generate a lot of excitement and ensure that we’re finding efficiency as we’re spending dollars to promote those new products and collabs.
One recent example, which also fits in the vein of reaching younger customers. We just did a collab with the rapper A$AP Nast, that just generated lots of excitement amongst younger demos. I got a lot of great press and enabled us to amplify our messaging around that collection in a really capital-efficient way.
Operator: Thank you. We now have Alex Straton of Morgan Stanley.
