The biggest driver in terms of Q €“ that benefited the Q3 dollar number is that our components were down substantially, mostly because we had in-transit inventory that we were lapping. So, if you think about the supply chain challenges a year ago, we had a lot of our componentry that was in transit. So, when we reported the dollars this third quarter, we were lapping an elevated in-transit number, which drove the percentage down to the 10%. The guide for Q4 is more normalized assumption on componentry, which is taking our guide up to the mid-teens. So, it’s not so much a phenomenon of inventory creeping up. It’s more just the componentry and what we are anniversarying. In terms of where we are focused on year-end is we have a very €“ we are maniacally focused on ending the season clean.
We have a goal, as you saw in our prepared remarks to end with the units flat year-over-year. We will focus our efforts on selling as much as we can during the all-important holiday time period. And then of course, we have our semi-annual sale that we will use to end the season clean. So, we are definitely focused on prioritizing clean inventories. We know that if we end the season clean, it will enable us to start 2023 on a very solid footing. In terms of pricing, as you saw in our remarks, we were more promotional in Q3 year-over-year, and we are planning to be similarly more promotional in Q4 as we look forward. We saw €“ as I said earlier, we saw that the customer is extremely price sensitive right now. And we have made our plans to meet the customer where their mindset is in both €“ we did that in Q3, and we are planning that in Q4.
Julie?
Julie Rosen: So, from a pricing and promo related question, as we enter this holiday season, we are absolutely confident in our strategy to read and react with agility and speed. Our operating model really enables us to effectively manage pricing and promotions to meet the customer mindsets and drive profitability. So, we are taking a very strategic lens to our pricing architecture. Currently, as we have all been saying, the customer is very price sensitive to higher prices. So, we are slowly and methodically raising prices in a way that don’t impact our customers very dramatically. Such as reevaluating some of our everyday deals and also increasing prices in our better-for-you formulas. So, we continue to use really our robust testing agenda to see where we can raise prices and help to build the basket.
Wendy Arlin: Thanks Julie. Next question please.
Operator: Our next question comes from Warren Cheng with Evercore ISI. Your line is now open.
Warren Cheng: Hi. Good morning. Thanks for taking my question. I wanted to ask about the 4Q seasonality of your business and whether that’s changed since 2019. So, if I run the 4Q sales guidance through my model, it’s a slight decel on a 1-year trend, but it’s a pretty significant decel if I look at it on a 3-year stack and assume that 2018 and 2019 are more representative of normal seasonality. So, just wanted to ask if there is any change in that seasonality versus pre-pandemic or anything unusual about this year that you would call out? Thank you.
Wendy Arlin: I would call nothing unusual about this year. I mean what’s unusual is if you €“ our growth during pandemic was accelerated and extremely strong. And over the last 2 years, did vary dramatically as stores during certain periods were reopened, and we were lapping restrictions, etcetera, etcetera. So, I think if you go back and look at our business pre-pandemic versus now, the seasonality is generally consistent.
Warren Cheng: Great. Thank you.
Wendy Arlin: Thanks. Next question please.
Operator: Our next question comes from Matthew Boss with JPMorgan. Your line is now open.
