So you need to look at those two numbers in different ways. There’s still a lot of new customers for us to get, and we are going to — we expect to get them over time. But there’s a lot of people we’ve encountered over time. And so that active customer number is kind of this engaged base. They have to be bought within the last 12 months. are they buying? And then obviously, if they buy again and they buy again, that’s the flywheel that drives the business. That’s where I mentioned, there’s a 2% sequential growth in the active customer number, that number is poised to turn positive. And we are still, at this point, only getting $550, I think it’s $540 per customer per year. So we still have a very low share of wallet. So there’s that’s where there’s a lot of juice.
Kate Gulliver: I agree with all that. And Oli, just one thing I want to point out. I think you implied that new customers were weakening. But we don’t — we give you the KPIs and then you have to do a little bit of math. And so recognizing that we’ve been on the call for 55 minutes, you probably haven’t been able to do the math. But if you take the percentage of repeat and then back into what that implies for new orders, you’d actually see new orders growing quarter-on-quarter. So you would see — or sorry, growing year-over-year. So you’d see that nice improvement actually in new orders and new customers. And we continue to be excited about what that implies for the strength of the offering.
Niraj Shah: Right. So new orders is over — it’s like $2-ish million. And so basically — Yes, that’s why I was trying to explain the definition of the active customer numbers separate from the repeat order stat because you could actually figure out a lot if you use them, but to understand how they’re defined separately from each other. So we’re gaining a lot of new customers. But what I think is even more exciting than that is, frankly, that the customers we’ve are being engaged in coming back to that active customer number.
Oliver Wintermantel: Got it. Thank you very much and good luck.
Kate Gulliver: Thank you.
Operator: Your next question comes from the line of Jonathan Matuszewski with Jefferies. Your line is open.
Jonathan Matuszewski: Hey, good morning. Thanks for taking my question, it’s on gross margin. So for three consecutive quarters, you’ve exceeded the high-end of your guide on this line item by an average of around 90 bps. So just curious kind of what are your assumptions underpinning 30% versus 31%? And why should the 4Q result not top the high-end of your guide considering the recent trend? Thanks so much.
Niraj Shah: Sure, Jon. Obviously, one thing, keep in mind, there’s a different mix of goods that are sold each quarter, which create some gross margin changes as well. But let me turn it over to Kate for the specific information on the guide.
Kate Gulliver: Yes. I think what you’re seeing there is, again, nice flow through of those cost savings that we laid out at the beginning of the year. We said in the second quarter that actually flowed through a bit faster than we had anticipated, and so we reinvested some of that in the third quarter. And we intend to be mindful of how we make that investment. We want to be maximizing gross profit dollars over a multi quarter basis. In the fourth quarter, as Niraj mentioned, seasonally, there’s some impact there. It’s also a great quarter to bring people onto the platform. We just had that discussion about new customers. It’s a great quarter to bring new customers in and get the benefit of those customers over time. I will point out, you also, of course, saw us bring up the guidance range. So we remain confident in the direction that gross margin is going, and we are really excited about what we’ve been seeing there.
Jonathan Matuszewski: Thank you.
Operator: This does conclude the question-and-answer session. I will turn the call back to the Wayfair team.
Niraj Shah: I just want to say sort of thank you to all of you. We are obviously very excited for the holiday season. We are excited about the share gains we’ve had, the order strength, the momentum, the profitability growth, kind of the positioning we have for increased profits and everything. We thank you for your interest. And with that, we will see you next quarter.
Kate Gulliver: Thank you.
Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect your lines.
