Peter Benedict: Hey, good morning, guys. Thanks for taking the question. Jeff, maybe one for you. Just, I don’t know if you could help us maybe size the advertising cost leverage you guys have seen in the first half of the year and maybe how do you think about the second half, given the various revenue given the various revenue paths that you’ve laid out? I understand the agility of that model, but just trying to think through how much leverage you expect to get on that, or is it your ad spend just come down as the sales are coming down and so just if you can help kind of dimensionalize that for us, that would be super helpful. Thanks so much.
Jeff Howie: Yeah, sure. Good morning, Peter. Thank you. Look, our Q2 SG&A at 26.1% leveraged 30 basis points. This reflects our financial discipline and ability to control costs and in a quarter, we leveraged both employment and ad costs. And as you all know, we don’t like to guide individual P&L line items, but I think you can keep three factors in mind as you model the back half. From an employment standpoint, the majority of our employment is in our stores, distribution centers, and call centers, where we have the ability to flex with sales, but look, there are some fixed costs that won’t leverage with lower sales. Getting specifically to your question on our in-house advertising, with our in-house own hands on the keyboard approach to marketing its competitive advantage, it does allow us to adjust spend as we see business trends evolve, but there’s a minimum amount of advertising we’d always do.
So there’s a limit to the amount that we would be able to leverage that line. And third, I think this is the most important point for everyone. I just want to remind everyone that in Q4 last year, we benefited from a reduction in incentive compensation and some insurance proceeds. We do not anticipate being able to anniversary that this year, which will likely impact our Q4 SG&A rate. When you take a step back, I think the key takeaway here is our SG&A leverage shows the flexibility of our operating model, our commitment to financial discipline, and our ability to control costs.
Operator: Our next question comes from Brian Nagel from Oppenheimer. Please go ahead. Your line is open.
Brian Nagel: Hi, good morning. Congrats on a nice quarter here. So my question, just with regarding with furniture, so maybe I’ll kind of wrap a few questions into one, but you talked about a more challenged backdrop there. So the question I have is, are you seeing, as you look at the furniture category. Is it getting worse? Are you seeing — are you seeing, do you see weakening demand, through the quarter, so far in the back half? And I guess it’s easy, it’s not, there’s a lot of reasons we can be, bigger ticket. A lot of other companies have called out weakness as a bigger ticket. Is it a consumer dynamic? Are you seeing something more competitively there as well? And then just the final piece of it, as we think about the back half of the year, just remind us on the seasonality, the general seasonality of furniture. Does furniture become less significant as we head toward the holiday season?
Laura Alber: Thanks, Brian. Yes, certainly furniture becomes less significant as we head towards the holiday season and Williams-Sonoma becomes a larger part of our total and also the Pottery Barn decorating and gift-giving business also really shines at that time of the year. We have been working hard to increase the seasonal holiday assortment in West Elm as well. And I’m excited that we have a good amount of newness for West Elm this holiday season. I think it looks great. In terms of furniture cadence, we don’t really comment on cadence. I think you know that there are some real winners in our furniture assortment. It’s amazing to look at all the differences and see where the customer is going and we’re thrilled to see some of our new fall programs doing really well and seeing what the customer is looking for.
