Bob Drbul: Hi. Good afternoon. I guess, the first question I have is on Old Navy. Can you maybe just talk to some of the operational improvements? And where do you think any of the early reads are on Old Navy under Haio, as he’s taking over? And then, Bobby, I’m just curious if — are you thinking of staying on as CEO, given the delay in naming a permanent CEO? Thanks.
Katrina O’Connell: Maybe I’ll start — do you want to go ahead, Bobby? Go ahead.
Bobby Martin: No. Go ahead. I can’t wait to put on to my answer on that last one.
Katrina O’Connell: I’ll go ahead and start with Old Navy. I think we’re really pleased to see playing out at Old Navy what we have been talking about, which is, sequentially improving the BODEQUALITY inventory, which has finally been cleaned up and more rationalized in stores, back towards what is an appropriate level of inventory for that customer, still having that inventory fully available online to serve that customer, but really getting that markdown inventory out of stores. Then on top of that, being able to finally pivot the inventories towards the categories that are selling. And then on top of that, starting to really get back to pulling down inventory more in line with demand. And all of that sequentially has started to show real improvement. I know, Bobby, you also have a view on some of the executional work, so I’ll let you talk to that.
Bobby Martin: Yes. Look, I think looking at Haio, although he’s only been in just a little over 100 days, he’s taken decisive steps, particularly around the store inventory. If you get in our stores, right now, they’re full. We brought a lot of that inventory forward but it’s being merchandised well. And his focus has been very, very, very strong that we don’t lose sight of good merchandising, so we’ve got good product. It is resonating with the customer and we should never get confused even in the excess of inventory to not merchandise that well. So that as a customer comes in, right now, we’ve really tightened up under his leadership, particularly in Old Navy, but it’s across the other brands to really know when the customer is in.
She knows that — we know she’s there from the time she comes in until she leaves. So, the engagement with the customers is really high. And being able to, again, capitalize on some of the current trends. Old Navy, clearly, even in the given assortment, we serve a wide range of customer. We commented on it during our opening remarks that even with the lower income customer, we’re seeing some transition there, but that’s just meaning that they’re really moving to opening price point and denim a little bit more. But on the other side, we’ve got big strengths that are showing up in categories like back-to-office and even in just some of our basic fashion where she’s really responding well. So, Haio’s strengths right now through the team and I’d say that we’re really pleased with what we’re seeing happen is really getting the inventory right-sized, cleaned up.
And operationally, we’re executing to get the maximum conversion and then driving the UPT up, knowing as soon as we can get her committed to the checkout, we have a greater opportunity to see that additional transactions hit the basket and that’s got the work of the work. And right now, we’re pretty pleased with what we’re seeing, and again, a lot more to come. I will address your second question and I’m flattered, I guess, that you would ask, but there’s really only two messages that you really should hear. I mean, you’ve heard the really strong focus around operational improvements, getting things right, knowing where we’ve got it wrong and stepping up to those things. So, the message you really have to hang on to there is we’re not in timeout.
