Because if you look at the cash flow statement of last year, there was – I mean, despite the strong growth that we had last year, we had a positive cash inflow on inventory, so less inventory. So obviously there is a previous year effect in the growth of the inventory levels, if you just look at the share growth. And also bear in mind, yeah, 80% of the inventory is current upcoming seasons. And with our full price approach and high-end positioning, we are able to achieve sell-through rates over – healthy sell through rates over a much longer period, usually 95% over 21 months. So the inventory levels will continue to stay elevated. We are not managing that quarter-to-quarter but more on a medium-term outlook in a healthy way that is healthy for our positioning and our business model without hurting the P&L or our positioning.
Abhinav Sinha: Okay.
Martin Beer: And on the gross profit margin there, I mean, we have to see how the gross profit margin will evolve in H2. So a clear guidance is, I called out in H1. But H2 is obviously also on the gross profit margin side better than H1. And we are very confident on seeing a positive trend there. How it will play out, we have to see. We are definitely standing true to our high end positioning, to our full price focus. And that is key in everything what we do.
Abhinav Sinha: Okay. And just to be sure, on the EBITDA, you said the 2H ‘24 will be 50 basis points to 150 basis points higher than 1H ‘24. Is that the correct understanding?
Martin Beer: Exactly.
Abhinav Sinha: All right. Yeah. Sure. Thanks. Thanks, Martin.
Martin Beer: Thank you.
Operator: And your last question comes from the line of Yawen Gao of CICC. Your line is open.
Yawen Gao: Thanks for taking my question. So my question is on AOV. Obviously, we achieve a very high AOV in fiscal ‘23, despite the promotional pressure. And I believe this was mainly due to the strong performance of the top customers. And also, they are increasing share of the [indiscernible] but in the future, maybe like say next year, as the micro environment turns around and other customers, including the aspirational customers come back, and also [Technical Difficulty] then more and more market share, the sales could maybe more balanced between the top customers and the others, therefore, which level of AOVs will expect over the long term? Just could you share any ballpark numbers with us and how will this impact our margin? Thank you.
Michael Kliger: Thank you for that. Yes, in principle, you have a correct argument, aspirational customers coming back will in the industry probably lower the AOV again. In our logic, number one, aspirational customer, we are unfortunately not, we’re still some seasons maybe away from that. So our fiscal year ‘24 is not expecting sudden return of all our aspirational customers. And the continuous increase of our AOV has also been a reflection of our continuous focus of our whole assortment on the top end customer in terms of additional categories and additional more expensive items. So I think the trend of increasing AOV is our long-term objective in increasing our share of top end customers. Big return from aspiration customers may lower, slow down the increase, but we don’t see a reversal coming.
And in terms of margin, as we don’t see a big, lower AOV in the next years, I don’t see any impact of AOV or unit economics on our margin. On the contrary, with the huge investments in technology and the huge investments in infrastructure like the warehouse, we will actually continue to create more efficiencies, independent of AOV just by being much more productive in operating our business.
Yawen Gao: Got it. Thank you.
Operator: There are no further questions at this time. We thank you for participating in today’s call. This concludes today’s conference call. You may now disconnect.
