John Murphy: Okay. And then just a question, Bill, as you think about the same-store sales comps, I mean, it’s tough to call exactly when things will inflect. I’d love to hear your opinion about when you think they may inflect. But if they don’t, is there an opportunity to potentially get more aggressive on SG&A costs through headcount reduction or other areas in case we’re in an environment where affordability and supply remain a pretty material issue?
Bill Nash: Yeah. So John, what I’d say on the cadence as far as being able to flip that. But really the only thing I can point to, which is what I’ve talked about in the past is just when we’ve seen this in the past, how long is it generally taken? And I think if you go back to ’08, ’09, I think it took us about seven to eight months before we flattened and then started growing it year-over-year. You look at COVID, it was more in the four to five month range. So again, I feel good about the progress we’re seeing there. Now as far as your second part of the question, which is the SG&A reduction. Look, hopefully, we made it very clear that we are very focused on this SG&A, so reduction. So whether wherever the market share goes, we’re going to continue to move that.
But regardless of that, we’re going to continue to focus on continuing to prove SG&A with things like we’ve been talking about with Sky and becoming more efficient in the CEC, becoming more efficient in the stores. There really isn’t one piece of the business where we don’t have efficiency plays that we’re currently looking at. So it doesn’t matter if it’s a business office, service operations, merchandising, every single department we have internal goals that we’re going after. So regardless of the market share, we’re going after continued efficiency.
John Murphy: And that target of low 70%, I mean, is that a one or two year target? Or is that an eventual? How should we think about getting there, the time frame?
Enrique Mayor-Mora: We want to get there as fast as we can. It’s also going to require the gross profit improves as well. So it’s critical that the underlying business and the macro environment improves as well, and then we’ll get there. This quarter was particularly strong. The first quarter, again, is usually the strongest quarter for the reasons I mentioned in my prepared remarks, right? But we do expect the rest of the year to continue to deliver on our commitment for this year, which is a low single-digit gross profit in order to lever, which is a material difference from where we’ve been over the past few years in our heavy investment phase. But 70% is our next step is what we mentioned. And from there, we can hopefully even lever even more in the years beyond. But 70% is our next step.
Bill Nash: Yes, John, I think we talked about last quarter that well, for this year, we need the macro conditions to continue to improve to get there. If that doesn’t happen this year, we wouldn’t expect this to be a two-year thing. We would expect to get back there next year.
Enrique Mayor-Mora: Yeah. And that’s in the mid 70% range, right?
John Murphy: Great. Thank you very much.
Bill Nash: Thanks, John.
Operator: Thank you. Our next question will come from John Healy with Northcoast Research. Your line is open.
