Alexandra Straton: I just wanted to get your input on kind of the divergence between the recent store growth. I think it’s sitting at over 20% just versus the active customer growth and the revenue per customer sitting at about 4% and 7% and then total revenue, I think, at 11%. I’m trying to understand that gap and kind of how you guys are thinking about a potential path back to 20%.
Steve Miller: Sure. Thank you for your question. The difference in terms of growth at the total company level of up 10% versus store growth of up 24% is really explained by growth at the channel level and channel mix. So if we were to double click into that 10.6% revenue growth, we have a business split that’s approximately, at this point; 2/3 retail, 1/3 e-commerce, with our retail channel; up 25%, growing in line with store growth, while e-com revenue was down 6%, really in many ways, driven by the fact that over the course of the full year, we’ve dropped marketing spend by 15% in the most recent quarter by 40% year-over-year. So the way to understand the bridge between total company growth is if you look at the growth in both of our channels, retail growth, very healthy e-com growth under pressure directly related to our rebalancing of marketing spend in line with pre-pandemic levels.
In terms of how we’re thinking about that in terms of active customer growth, our active customers were up roughly 3.6% year-over-year and average revenue per customer up almost 7%. So more of our growth being driven by price appreciation versus customers. We expect to see that thematic trend continue this year, although we are projecting a moderate uptick in growth coming from active customers and a very consistent profile in terms of our year-over-year growth in terms of average revenue per customer. So I hope that helps kind of walk through how to bridge growth across channels and some commentary as it relates to how we’re thinking about growth from active customers versus average revenue per customer.
David Gilboa: Thanks, Alex. And just the other part of your question around how we get back to our longer-term growth targets. As we look at industry data, it’s clear that the last year was an abnormal year for the optical industry. Vision counsel indicates that prescription glasses market declined, which is consistent with other market data that those transaction volumes declined across the category, and that comes on the heels of an abnormally strong 2021. So over time, we expect that these swings will become less extreme and the normally steady and predictable behavior in our category will return. Over time, that category growth will provide tailwinds instead of the headwinds that we’ve been experiencing over the last year.
And we sell products and services that help people see and believe that these offerings will become more important than ever over time. Myopia is growing around the world. A recent study estimated that, on average, 30% of the world is currently myopic, but that’s going to grow to 50% by 2050. And so we remain energized by our mission to provide vision for all and believe the foundation that we’re building now to enable omni-channel holistic care will set us up for long-term growth and are expecting that at some period, this abnormal behavior we’ve seen in our category will abate, but we’re not counting on that in terms of our guidance and our expectations for 2023.
Operator: Final question on the line comes from Paul Lejuez from Citi.
Brandon Cheatham: This is Brandon Cheatham on for Paul. I just wanted to dig in a little bit on the SG&A expense savings. I was wondering if you could quantify how much do you think the impact is to top line growth from our reduced marketing spend? And then any additional tweaks that you’re thinking of making to marketing spend or other SG&A expenses in 2023.
