Farooq Kathwari: Yes. I mean, that’s a good question, Brad, because we are now in a very different environment than we were a year back, which is that the interior design destination created a situation, where we had the same product, almost the same product in all our design centers. So when we now introduce new products, we have to determine how much of that will go on the floor of our design centers and how much will be available for our interior designers to sell. Now, we have just finished repositioning our design centers all over the country with the products. And what we are now going to do is this. We are going to utilize the new products to a great degree by making them available to our interior designers, because today our interior designers are operating from smaller spaces and they are able to utilize our technology in creating a room environments, designs with products that they don’t have in their design centers.
You know, 10, 15 years back, we couldn’t have done it. We had to put it in the stores or design centers. Today this new product, I think at this stage, relatively small, will get into our floors. The rest will be available to our designers to use with customers, because through our technology, they are digital technology, they are able to place that product in their designs with the customers.
Brad Thomas: That’s helpful. Thanks, Farooq. A couple of other questions, if I could. You know, sometimes you all will give us some details about trends quarter to-date. Some of the data and feedback that we’ve been getting of late, is that the trends have been a little bit softer in January, you know, somewhat impacted by the weather. Curious if you have any color you could share about recent trends?
Farooq Kathwari: Yes, I think Brad that is important. We have – the weather has been a major factor. And the good news is this. In those areas where weather was not a major factor, we did okay. But in areas where weather was really bad, sales have been down. So, I would say that – the weather impacted it. But I would believe that as we come out of this, and especially we can see the difference actually between the first 12, 15 days of this month and the interest that is taking place now. So I think there will be much more interest, but the weather did impact our sales in those areas where the weather was very bad.
Brad Thomas: That’s helpful to hear and nice to hear that the non-weather affected regions have been stronger. And then I guess, Matt, occasionally you’ll give us some commentary on kind of the first quarter in terms of how to think about perhaps where revenues or margins may shape up. Anything for us to keep in mind as we’re modeling this March quarter?
Farooq Kathwari: Matt, what do you give them?
Matt McNulty: I think the trends will stay relatively consistent with the past couple quarters. The puts and takes that we’re seeing would lead us to similar projection. Now, we don’t give guidance out there for Q3 or beyond, but I would anticipate it to be somewhat similar to what – the quarter we just ended up in.
Farooq Kathwari: Yes, Brad, as you can see that even with the – some decline in sales, we did relatively, we had decent gross margins and operating margins. Obviously, when you compare it to the previous year when we had the benefits of all the pandemic sales, they were high. So, we have been able to maintain decent margins.
Brad Thomas: Very helpful. Thanks so much and good luck this quarter.
Farooq Kathwari: Thanks very much, Brad.
Operator: Thank you. Our next question comes from the line of Cristina Fernández with Telsey Advisory Group. Please proceed with your question.
Farooq Kathwari: Hello, Cristina. How are you?
Cristina Fernández: Hi, Farooq and Matt. Thank you for taking my questions. I just have a couple. I wanted to ask, of the $15 million in delayed sales due to the flood in the summer that you had called out on the last call. How much of that were you able to deliver in the December quarter? And how should we think about the remaining amount? When is that going to flow through the income statement?
Farooq Kathwari: Matt, you have been working on it very closely. What do you say?
