Jeff Howie: Yeah, thank you. That’s a great question. B2B continues to be one of our most exciting initiatives and while the total business round down 5% in Q2, which was improvement over Q1, the contract business, which is the source of our growth and really where our focus is, grew 23% in the quarter to achieve our largest quarter to date in contract. And as Laura mentioned in our prepared remarks, we’ve seen quite a few notable wins, San Antonio Spurs training facility, Sony in the entertainment space and multiple projects with the Montage, Four Seasons, Westin, Hilton and Hyatt. Overall, we’re not seeing a slowdown in the contract side of the business. There’s a large backlog of projects coming out of the pandemic and we see a steady pipeline of bids we’ve gone out on and I think you have to remember this business has two formats, trade and contract.
Trade is currently more volume, but contract is the source of our growth and while the trade of business has been more impacted by this load housing market, we’ve seen recent improvement in the trend, but our focus is on accelerating our contract growth. The key point when you think about B2B is, it continues to be a winning strategy for us and we continue to capture market share in an $80 billion fragmented market. It leverages our portfolio brands, our in-house design team and our globing sourcing capabilities and we can really service the B2B customer in multiple ways.
Operator: Our next question comes from Steven Zaccone from Citi. Please go ahead. Your line is open.
Steven Zaccone: Great. Thanks very much for taking my question. Laura, I’m curious for your perspective of the overall industry at the halfway point in the year, do you think the industry has gotten more promotional than you’ve expected and you’re just not willing to participate, or is it just overall you’ve seen a bigger pullback in kind of furniture spending? And then as you look to the second half of the year, if the industry stays promotional, would you not be comfortable in kind of participating in that? We should think sales are probably going to come in at the low end of the range. Thank you.
Laura Alber: The industry has always been promotional. Honestly, it was as promotional before the pandemic and its promotional now. Our stance is the same that it’s been. We want to give our customers the best designs, the best quality and the best value versus running up and down prices, which is a very short-term way to run your business and creates a lot of customer friction, honestly. Think about the customer who buys something and then sees the price get reduced. So it’s not good for customer service and when we think about what the right thing to do is, we think about our customer and how do we always give them a better product? How do we improve the quality? How do we improve the pricing versus thinking about the short-term?
And so I feel very good about our product line-up. I feel that we are continually looking at where we should make small pricing adjustments. We are maniacal about inventory optimization and clearing things that are not selling and I think that’s the right way to run a retail business. You’ve seen us bring our inventory levels down pretty substantially, and yet we’re in better stock than we’ve been in for a long time. So we’re pretty, I think, well set up and as we said earlier, that’s why we’re confident in the guidance we gave this morning.
Operator: Our last question will come from Marni Shapiro from Retail Talker. Please go ahead. Your line is open.
