Oliver Chen: Okay. In the U.S. retail marketing your retail partners, we have some concerns about promotions overall and inventories running in line to perhaps getting a little bit worse as some of the trends decelerate. I would love your take on the U.S. retail market. And then Sallie as we model inventory growth relative to sales, what should we expect in the back half? And how are you feeling about the freshness of your inventories?
Efraim Grinberg: So I think — as I’ve said several times on the call, I just think there’s a lot of uncertainty now. And nobody knows what’s going to happen with interest rates. And I think that is certainly having an effect on the economy and on consumers. There’s still a strong job market, which is a positive. So — but consumers have had to pay more for things that they need to buy. I think there’s also been an increase in travel and dining out. And — but that will eventually I think with higher interest rates also become somewhat stressed. So I think it’s really operating in an uncertain environment and it’s something that we’re generally — throughout now our history, we’ve been very good at adapting to the consumer needs.
And it’s a very consumer-focused company. And that’s why we’re reintroducing some opening price points, particularly in our licensed brand portfolio as consumers become stressed in other areas. And we’ve seen some very good initial responses to some of the things that we’ve brought to the market quickly.
Sallie DeMarsilis: And your other pieces on inventory, Oliver, and we are modeling that our inventory becomes more in line throughout the year. There was a bit of timing of receipts for some of our Swiss product that has a longer lead time in that we actually assemble. So by the end of the year, we expect to be at or below last year’s year-end numbers for your modeling purposes.
Oliver Chen: Okay, Sallie. And then as we model the back half, will the gross margin continue to have a negative mix impact? And would love your thoughts on key drivers for the back half of the gross margin line? Your balance sheet has always remained robust as well. What should we think about in terms of repurchase the dividends and special dividends as well?
Sallie DeMarsilis: Okay. I’ll start on gross margin and then we’ll get to maybe some of the more the questions on dividends and the like. Gross margin, the challenge is the comparison to last year, really. This year, we should have no unusual call-outs. Last year, we happened to have abnormally strong margins, especially in the front half of the year. If you look at each quarter, they decelerated throughout the year. So it’s going to be — it’s a tough comparison this quarter. If you go back to 2 years ago, we are above where we were 2 years ago. It’s just a comparison to last year makes it difficult. So last year, you saw very large increases due to mix. This year, you’re just seeing those come back down a little bit more in line, but still better than we were 2 years ago.
So that may help you a little bit on the modeling side. And then on the capital allocation, dividends and share repurchases, I think we’re very generous with our $0.35 regular dividend per quarter, and we’ve talked about share repurchases being a tool to offset dilution.
Efraim Grinberg: And then I think I wouldn’t anticipate there being another special dividend. I think that was an event that we did at the beginning of the year when we had a — we believed would be a way to return value to our shareholders. And now our focus is on our ongoing dividend as well as continuing to maintain a strong balance sheet throughout the year.
