Jeff Howie: I think one thing to think about with our inventory that’s different from, say, an apparel retailer or fashion retailer is we have a much higher penetration at the core. So we don’t have that seasonal pressure to move like other companies do that are in the retail industry. And from a long-term standpoint, again, to the back half of ’23 and into, these headwinds we’re experiencing really become tailwinds, and that’s where we see opportunity on the margin from a long-term standpoint.
Operator: Your next question comes from the line of Brad Thomas with KeyBanc.
Brad Thomas: Two financial questions, if I could. The first, just thinking about sales for the fourth quarter, I know you reiterated the full year guidance, but technically, if we back into what’s implied, it’s a pretty wide range. Wondering if there’s any more color you could share with us with how to think about the fourth quarter revenues. And then, we get a lot of questions about the structural margins of Williams-Sonoma and it does seem to me that you’ve done some great things with the brands and probably deserve a higher merchandise margin than pre-pandemic levels. And similarly, you’ve done a great job of getting more efficient with occupancy expense and having a greater mix of e-commerce sales, and perhaps that should support a higher margin. But I would love to hear your latest thoughts on perhaps what structural margins look for you as we think about perhaps slower trends ahead? Thanks.
Jeff Howie: Okay. Let’s start with the Q4 implied sales. And yes, it’s a wide range. As I spoke to in my prepared remarks, we saw a tremendous amount of choppiness in Q3. The result of that choppiness is there’s a wide range of estimates. But our guidance is a blend of those ranges of estimates and reflects our best estimate as what we see potentially happen in Q4. As a result — as it relates to the structural margin, there’s been quite a bit of change within the structural margin. And here, I think there’s a lot to talk about in terms of how we’ve really improved our operating model. The first one is the impact of elimination of site-wide promotions. That is really buttressing our merchandise margins and giving us a lot of opportunity there to continue to sustain that.
I think it speaks to something we really learned and sort of maybe relearned in the pandemic is that our proprietary differentiated product that our in-house design produced really commands its own price in the marketplace. And that product really resonates with the customer, and they’re really willing to pay for it. The second thing is, throughout the pandemic, we really number one, improved the profitability of our retail stores and as mix has shifted to e-commerce, which by nature is more profitable for us. So, a combination of those different factors, really helps us with sustaining the margin. And then over the long term, we see additional opportunity to take costs and drive efficiency throughout our P&L.
Operator: This concludes our question-and-answer portion for today. I now turn the call back to management for closing remarks.
Laura Alber: Yes. Thank you all for joining us. I want to wish you a very happy holiday season and look forward to talking to you next year.
Operator: This concludes today’s conference call. Thank you for attending. You may now disconnect.
