Chris Horvers: So, my first question is just to check the math, on the LIFO the headwinds being halved in the second quarter. So I guess, directionally, should we think about your gross margin headwind in the second quarter being roughly half of what you experienced in the first quarter?
Jamere Jackson: Yes. I mean, we expect LIFO charge in the second quarter to be somewhere in the $40 millionish range, if you will. And so that will be significantly less pressure from a gross margin standpoint.
Chris Horvers: Got it. And then, is — as a follow-up to that and then a question on the SG&A side, I mean, is there — other than the mix headwinds of Do-It-For-Me in gross margin, is there anything else to consider? And then on the SG&A side, SG&A dollar growth year-over-year has been running in this 8% to 10% range over the past four quarters. How much of that is wage and benefit cost inflation versus investing during the good times? And then going forward, how are you thinking about inflation and wages and SG&A in the context of your overall leverage point?
Jamere Jackson: Yes. So, from an SG&A standpoint, I mean, we’re going to continue to grow SG&A in a disciplined way as we create a faster-growing business. As I said, we were flat as a percentage of sales this past quarter. But we’ve been investing, and we’ve been investing to maintain high levels of customer service. And we’ve been investing because many of our growth initiatives, both on the retail and the commercial side of our business, are underpinned by investments in IT. So IT investments, in particular, are an enabler to what we’re doing from a growth standpoint. As you know, wage pressure is a macro labor market issue, and we certainly haven’t been immune to those dynamics. Historically, our wages have run in the, call it, the 2% ZIP code.
It’s been running closer to 5%. And so that’s put some pressure on us. But what I’ll say about SG&A over time is that we will continue to manage it in line with the top line. We’ve been opportunistic as our business has grown to invest at an accelerated pace in some areas to support the growth in our business and to maintain great levels of customer service, and we’ll continue to be very-disciplined about it going forward. And I’m sorry, what was the first part of your question again?
Chris Horvers: Other than the mix of commercial versus DIY, is there any other variables that are different here in the second quarter in the context of that LIFO headwind being halved?
Jamere Jackson: No. We’ve said that our faster-growing commercial business is likely going to put 35 to 45 basis points of pressure on our gross margins. You saw that in this quarter. And we continue to expect our commercial business to grow significantly faster than our DIY business. And those are the kinds of headwinds that you’ll see from a margin standpoint as we move forward.
Operator: Your next question is coming from Michael Lasser from UBS.
Michael Lasser: Bill, your tax in the commercial business remains quite consistent, but it did slow on a one-year basis. Do you think that’s more related to something happening out of AutoZone where the log diminishing returns are taking over such that you’re still generating similar amount of incremental sales, but it’s just on a larger base, or is there something happening in the underlying trend of the commercial segment itself?
Bill Rhodes: It’s a great question, Michael and one that, frankly, I’m not sure that I can factually answer. I will start with 15% growth in our commercial business, we are all excited about that, especially coming off of the growth that we’ve had in the last couple of years. So, we are pleased with the performance in our commercial business. It’s widespread. The slowdown, the slight slowdown that we’ve experienced is across the board. It’s not national accounts. It’s not up and down the street. It’s not our ProVantage customers. We’ve seen a general slowdown across different customer bases and across geographies. So, I don’t think that it’s anything that we’ve done at AutoZone. I think it’s — we’ve grown very fast, and we grew 15% on top of it, and we’re pleased with that.
