Corie Barry: Yes. First, I just want to say, I give our teams a great deal of credit for navigating to your point, what has been an incredibly volatile backdrop. I think the expense and analytics of our teams really shines in moments like this. So, we talked a bit in the prepared comments about €“ some of this is just a shift in timing. Last year, recall, inventory levels were really challenged. And so everyone was trying to bring in inventory really early, and there was lots of customer demand really early because people were worried about not being able to get the products throughout the holiday. This year as we said, we expected the holiday to shape a little bit more traditionally like pre-pandemic, and therefore, our inventory flows are moving more in that direction.
And we specifically said in places where we have longer lead time categories, we placed some of those bets earlier and then allowed ourselves a little bit more ability to maneuver on those items that don’t take quite as much long lead time. There are always some spotty places where we wish we had more inventory. This is almost always true in consumer electronics. I mentioned gaming consoles, that’s commonly a place. And I think there has been some conversation about some of the more iconic phones and the production there and availability there. So, that’s not anything that’s new that’s kind of typical as we head into holiday. But those will really be some of the spaces where we would add more. And what I like is that we have a lot of room to maneuver throughout the holiday in partnership with our vendors.
As we think about where the demand profiles might ebb and flow, we can bring that inventory in, and we said it. We bring in the majority in November, but we replenish the whole holiday season, and this allows us the room to bring in really what’s resonating with customers.
Liz Suzuki: Great. And just on your comment earlier about online penetration being likely to grow as it did prior to the pandemic, are you agnostic to online versus in-person shopping or is online an inherently lower operating margin business than brick-and-mortar?
Corie Barry: I will start a bit and then Matt can add in. What I actually believe that this combination of omnichannel is our strength. And not only are we agnostic, we love it when customers are using the multitude of channels that we have and that includes consultations at home that includes our virtual channels like chat and phone that includes online and that includes stores. And so I €“ instead of just even saying agnostic, I actually would say we want to double down on a customer, who wants to shop us across all those channels. Matt, maybe you can provide some of the profitability color.
Matt Bilunas: Sure. I think over the last number of years, the team has done an amazing job adjusting for a very different way of delivering to the customers. In my prepared remarks, we talked about how the core of our rate is actually slightly up compared to where it was pre-pandemic. And that’s adjusting for €“ nearly doubling of the online mix in addition to absorbing all of the inflationary costs that we have seen over the last couple of years. So, that gives a little evidence to financially, we are able to actually do quite well in an environment where our dot-com business can reach those levels of penetration. So, we are absolutely agnostic €“ and on top of it, we just want to do what’s right for the customer. The customers are going to lead us to where we need to be and our model can absorb that in any type of environment.
Liz Suzuki: Great. Thank you.
Corie Barry: Thank you.
Operator: Thank you. We will now move on to our next question from Steve Forbes of Guggenheim Partners. Your line is open. Please go ahead.
