Matt Koranda: Very helpful. I will get back in queue. Thanks, guys.
Donna Dellomo: Okay.
Operator: Our next question is from Alex Fuhrman with Craig-Hallum Capital Group. Please proceed.
Alex Fuhrman: Hey, guys. Thanks for taking my question. I wanted to ask about the increasing lifetime value to customer acquisition cost ratios, which is really impressive and counterintuitive, I think, given everything going on with the economy and high inflation and interest rates. So curious what’s been driving that? Has it been more about more efficient customer acquisition? Or is it more as you add more product that you’re seeing more of an increase in the lifetime value over time? Or maybe you’re seeing it from both sides of it. But any color you can give us there would be very helpful. Thanks.
Mary Fox: Yes, great. Thank you, Alex. And, yes, equally, we are very thrilled to see results that we just don’t see from anyone else. And I think what’s really also exciting is that you get full payback just from the first transaction or more. And we only use, I think, as we talk, the first fiscal year of purchases. And we know they come back to us for decades. And I think as I shared our repeat business is actually up to 38% of our transactions, so we are getting much more efficient in terms of customer acquisition. The team do a great job, whether it be hyper local marketing through to just the optimization of search along the year and even just sharing out the awareness of the brand all the way through to acquisition. I think the second piece that we really have seen a benefit is as we advance into other categories, expand our total addressable market.
As you know, StealthTech is part of our effort and the creative that we do alongside Sactional. Just think of that, you literally get the advertising for free. So as we continue in our flywheel expansion, going into new categories over time and everything that we’ve shared, you can just start to see even more of the efficiency opportunities that will continue. And the team has done a great job. There’s been some inflation, but they continue to optimize, shift and really manage the mix incredibly well. And we are very proud of all of their hard work because we really do see that big industry leading.
Alex Fuhrman: Great. That’s really helpful. Thank you very much.
Mary Fox: Yes, thank you, Alex.
Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Shawn Nelson for closing comments.
Shawn Nelson: Yes. We would like to thank all of the amazing Lovesac associates who have made these results come to pass and thank our investors as well for supporting the company, and we are off to another great year at Lovesac.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
