Shane O’Kelly: Yeah, two good questions. So first, let’s address the supply chain financing, we are not seeing that kind of impact in our programs. We have very strong bank partners and we have a tremendous amount of support from our key vendors and we are not seeing any of that at this time. So in terms of that, we feel good. In terms of the guide in the back half, we have not laid out the impact from the restructuring, it is included in our guide. We’re really not commenting on that just due to the sensitivity around our team members as we kick this off.
Tony Iskander: Yeah. Those reorganization dimensions are taking place this week and we want to be sensitive to our associates. That’s a difficult process for any company to go through.
Christian Carlino: Got it. That makes sense. I appreciate that.
Operator: Thank you. The next question goes to Elizabeth Suzuki of Bank of America Merrill Lynch. Elizabeth, please go ahead, your line is open.
Elizabeth Suzuki: Great. Thank you. Just a question on the decision to increase the new store opening pace. I mean, particularly in the context of simplifying the business and preserving cash flow. Just curious what you’re seeing in terms of, you know, new store profitability and whether that’s been exceeding your expectations?
Shane O’Kelly: Yeah. So hey, Liz, good to talk to you again. We increased that based on a couple of opportunities that we have had in terms of opening stores, or accelerating some of those openings — new store openings. So we believe that, you know, we will continue to be very prudent in our approach to new stores and we will continue to focus on asset productivity that we’ve talked about the last two quarters, and that’s an important part of our business.
Elizabeth Suzuki: And just that, just a question on the businesses that you’re planning to sell and, you know, what was acquired back in 2014. Just thinking about how that — how those assets have evolved and whether, you know, because — so you are selling the Canadian part of the Carquest business but keeping the US part and selling the Worldpac part of the GPI acquisition, so just trying to frame or size those, you know, businesses as much as possible just, you know, for our own analysis?
Tony Iskander: Yeah, we don’t do segment reporting. So not prepared to break those out now. But just reiterating, they are both good businesses and that sales processes we’re just starting that now So we’ll do price discovery with potential suitors, no requirement to sell the business if we’re not satisfied with what we see in the market and so we’re just starting that now.
Elizabeth Suzuki: Okay, fair enough. Thank you.
Operator: Thank you. The next question goes to Steven Zaccone of Citigroup. Steven, please go ahead, your line is open.
Steven Zaccone: Good morning. Thanks very much for taking my question. To follow up on the prior question, could you please talk about the Worldpac business, is it much higher than reported operating margin that you have today and then help us think about the priorities for the cash proceeds from these sales, how would you rank using that cash?
Shane O’Kelly: Yeah, so good question. Unfortunately, back on the segment reporting, not going to talk about the business other than to say it’s a great business. We don’t have a requirement to sell it. Selling it lets us simplify our approach going forward, which is to that blended box model. Your question on the proceeds is a good one and first and always in a business if you have the economic dollars from an event like this, we’re going to deploy it to initiatives that clear our internal rates for what we want to do with the business. So there’s investment for our business, the growth of the remaining business, we’re excited about that. Secondly, always prudent to deploy funds to strengthen the balance sheet, so that becomes an option for the proceeds. And then third, we can look at shareholders and where excess capital might be returned to that. Those would be the three major efforts of how we think about that.
Steven Zaccone: Okay. I understood. My follow-up question is just on the DIFM side. So with your fresh perspective on the business, why do you think the core Advance business has been losing share in DIFM and I guess specific — specifically there, you know, average ticket has been a bit of a drag. How long do you expect that to be a drag to the Pro side of the business?
Shane O’Kelly: Yeah, so I’m going to ask Tony to break out a bit of flavor on our DIY versus DIFM performance, but know that, you know, my focus coming into the organization is to take those decisive actions that help us simplify the business and then provide the focus at that store level for both the DIY and DIFM customer. And as we do that, I think that’s where we gain success. But Tony, can you just characterize what you’re seeing on DIFM right now?
Tony Iskander: Yeah, correct. So as you’ve heard us talk about the last two to three quarters, we continue to focus on a very targeted CPI number. And as part of that, that will bring down our average ticket. And as a result, though, our transactions continue to increase.
Steven Zaccone: Okay, thanks very much.
Operator: Thank you. The next question goes to Greg Melich of Evercore ISI. Greg, please go ahead, your line is open.
Elisabeth Eisleben: Greg, can you hear us? You can go ahead and switch to next one.
Operator: Thank you. The next question goes to Bret Jordan of Jefferies. Bret, please go ahead, your line is open.
