Michael Lasser: And is this now a more realistic run rate? It will still grow double digits? Is it hard to maintain that 20% that you have been achieving? And my follow-up is one of your competitors recently announced that they’re going to make some price investments. This comes on the heels of another competitor emulating what you had done and make price investments. At what point should we call this a trend, and increased price transparency is just leading to a little bit more price competition within the commercial segment of the auto part retail sector?
Bill Rhodes: Yes, I’ll leave it to you guys to define the trends that you want to do. What I can tell you is our pricing investments that we made about 18 months ago we had nothing to do with our close in competitors. They were focused on looking at our value proposition versus the 80% of the market that’s outside of our close in competitors, and trying to make sure that we were priced right for the value proposition that we were delivering. We’ve been very pleased with that and pleased with we’re believing that our outside growth over the last couple of years has been driven not by taking share from our close in competitors by taking share from the broader market. And so I’m not seeing anything by any indications based upon either of our close in competitors pricing that we see anything very different.
Operator: Your next question is coming from Daniel Imbro from Stephens.
Daniel Imbro: I wanted to start on the commercial side. Bill, in your prepared remarks, you talked more about some tech investments you’re making to make it easier — I think you said easier to do business with you guys. Could you provide more detail on what those initiatives are? And then where are we — what inning are we in, in terms of the rollout of these different tech programs on the commercial side?
Bill Rhodes: Sure, Daniel. Thank you. One of the things that we’ve rolled out over the last couple of years is handheld devices for everybody that’s in the store picking the products and everybody that’s delivering to a commercial customer. And that helps us ensure that we have the exact right product, and it helps us manage delivery times, which we have brought our delivery times down about 20% since we deployed that technology. The other big part of it — and there’s a lot of different technology things that we’re doing along the way. But the other big one that we’ve done is really how we interact digitally with our commercial customers and — from providing them access to invoices to making us more seamless to operate together, just trying to take the pressure points out and make a frictionless transaction with us.
The handheld pieces have been deployed. We’re continuing to refine the technology. And I suspect that those refinements will probably take up to another year or so. I think the digital integration is less far along. We have more newer ideas that we have yet to embark on, on the digital integration with our customers. And so, that’s got to probably have 2 or 3 years of legs to it.
Daniel Imbro: And then I want to follow up on Chris’ question earlier on LIFO. So, Jamere, you provided a helpful color on 2Q. But I think in your prepared remarks, you said you expected to recognize some LIFO benefits in the back half of this year that would offset it. So if we just think about the $40 million you’re now guiding for 2Q and a LIFO headwind, should we assume there’s about $120 million of a LIFO benefit that’s going to flow through the gross margin line in the back half of the year? And then, what would the cadence be that you’d expect to recognize that $120 million benefit?
Jamere Jackson: Yes. Well, there are lots of things that will impact when we actually see the reversal of the charges that we take. The biggest one, as we mentioned, is the pace with which freight comes down and we get out of some of the contracts that we’re in. And as I said before, we won’t be date certain about when that actually happens, but we do anticipate that happens. So, it’s moving in the right direction for us. And given that our inventory turns at, call it, 1.5 times, you should expect it to take two or three quarters potentially for us to have all of those costs worked their way through and us to see it turn the other way. So, we’ll give a more fulsome update on our next quarter call. And as I said before, we’ll be very transparent about what we’re seeing.
Operator: Your next question is coming from David Bellinger from MKM Partners.
David Bellinger: The first one on commercial. It seems like the transaction counts maybe have been a bit slower this quarter. So, is there anything to read into that? And what type of consumer or customer activity are you seeing? Is there some type of deferral coming into play? Just any other details around the commercial counts would be helpful?
Bill Rhodes: Yes. We’re doing a lot of studying on both our retail and commercial customers because if you think about it, this is a pretty unprecedented environment. I know I’ve never seen inflation rates in the upper single digits and lower double digits. So, we’re paying particular attention to what customer behaviors are happening. As a reminder — and we certainly have more experience in the DIY business than we do in the commercial business, in the last economic shocks, the last four economic shocks in the U.S., our business has significantly outperformed normal periods of time. So, we’re monitoring that to make sure we understand, particularly what’s going on with the low-end consumer. And then, I think the expectation — and we don’t have near the evidence here at this point in time, but I believe that there’s an expectation that some commercial customers or some jobs that a commercial customer would normally be done DIFM, can trade down into the DIY sector.
