So, we’ve talked about not just the development of those things, but I want to make sure you understand, too, the way we’re using the channel strategy is to push things that are lower ticket and that are more for easy updates for the home versus the whole home. Also, we’ve been pushing collaborations. We’ve had some really great success lately with Colin King and Joseph Altuzarra. Those things sold out, and we’ve got some really exciting ones in that pipeline and we have more confidence now to buy into those. And collaborations very exciting for brands because they bring in new customer groups. And so, that’s a nice incremental change for us as well. And then in terms of the product design, and without going into too competitively, you always want to lead, right?
You always want to lead with design. And we are making, as I just said previously, some pretty significant improvements in what we’re bringing in, in terms of newness quantity and also the relevancy, in my opinion. And so, that’s very exciting. And it’s in the hopper, on order. We’re filling in where we’re out of stock currently on some winners, and we’re excited to see that come to fruition next year. So, it’s not to me the — that’s what all of our brands do with their designs. It’s not that there’s a problem, it’s more that you want to stay on top and you want to lead. And this new leadership at West Elm and the focus on product and focus on design is really exciting.
Operator: Your next question comes from the line of Brian Nagel with Oppenheimer. Please go ahead.
Brian Nagel: So first off, I too would like to add my congratulations on your continued profitability beats. So, the question I want to ask, and I know it’s a bit of a follow-up here, but just with respect to just the overall promotional environment. So I’ll ask maybe a couple of questions within this question. I mean, one, as you’re monitoring the environment and the actions of your competitors, is it — if you look at the other promotions that have accelerated, do you believe this is more temporary, either backdrop-driven, clearance-driven, or is this the kind of the return to levels we saw pre-pandemic? And then, the second question I have — and look, you’ve done a great job holding the line on your pricing. We clearly see that in the margins.
I guess, the question I’m asking is as you’re communicating with your customers, and has there been a shift in marketing shifts otherwise that you are saying your customers, look, we have great brands, these are high quality and you should not expect promotions from us?
Laura Alber: There’s still plenty of things on sale because we clear products. So, you can find — if you’re a promotional shopper, you can find sale prices on our websites for sure. So let’s not pretend we don’t have any. It’s just that the quantity of those is so much lower than it’s been. It’s so much lower than our competitors. I don’t like to name people by name, but we have scrubbed everybody’s website and look at them, and they’re littered with. I mean, in some cases, it’s 80% red line, 100% red line of some really good names out there. And I don’t know what they’re doing, but I can tell you what the customer sees. And I don’t know when they’re going to go back to regular price or if this is the new strategy, but this is what’s going on in the marketplace.
And it’s very important to us that the customer can count on the price. Because if you buy a piece of furniture, it’s likely not delivered for 4 to 5 weeks, that price changes and it hasn’t even been delivered, you’re never going to — you’re going to always wait until you get the sale and you just create this up and down curve of customers waiting for sale. It’s not a good cycle. And what I said before about the new selling, when you bring out an incredible product, and this is today, even with this depressed furniture environment, I’m talking about furniture, it sells out. Because when you have a product that good, customers want to buy it. But the key thing is the first time you price it, that price value relationship needs to be great.
So, that is where we’re focused. What is the first price, is that a great value, is it the best value in the marketplace? And now we’re looking at the competition and assuming they’re going to be 20% off, assuming they’re going to be 30% off. So we’re not just saying is it the best versus the regular price, we’re saying is it the best versus their sale price? And that’s the key driver here on creating value for the consumer and having them trust us. And when they trust us, they furnish their whole house with us.
Brian Nagel: That’s very helpful. If I could ask a follow-up unrelated. But with regard to again, gross margins, but now we’re seeing the benefit of moderating shipping costs. And recognizing that there’s a lot of accounting noise now these costs are capitalized But, I guess, Jeff, maybe this is more for you, but I mean, how long will this dynamic prove a tailwind for gross margins for Williams-Sonoma?
