Steven Forbes: I wanted to revisit the acceleration in transaction trends, really, if we look at it on a 3-year basis, it was a meaningful sequential improvement. So curious if you could just expand on what drove that, if it had anything to do with new athletes that were acquired. You mentioned $4 million, but is that $4 million more heavily weighted to the third quarter. Really just trying to get any insight on the sustainability of the step-up in transactions on a multiyear trend.
Lauren Hobart: Yes, Steven, thank you for the question. So we — our growth in transaction came from several important trends. First of all, we did have new athletes come in. So I mentioned 4.5 million year-to-date, 1.5 million of those were in the past quarter. So it’s been fairly consistent throughout the year. But they are also driving increased transactions and increased dollars per transaction. And I think it’s important to dive into how our consumers are doing and how they’re responding to our industry in our stores. But every single one of our income demographic levels has grown meaningfully in the past quarter. So it’s clear that we are providing something for everybody in terms of — so we can meet their needs and still deliver that outdoor lifestyle.
We are not seeing people trade down. So between our athlete database growing, our increased personalization efforts, which will continue into next year, we expect that, that will be a key driver for us going forward.
Steven Forbes: Maybe just a quick follow-up on Navdeep, obviously, right, you sort of a net share issuer with the settlement and unwind of the convertible note hedges and so forth. So would love to just maybe if you can expand on the decision to pause the repurchase activity last quarter. Any current updates on capital allocation as we look forward here over the NTM?
Navdeep Gupta: Yes. No, let me start with your second question first. So as we think about capital allocation, we continue to have a really strong balance sheet with more — with $1.4 billion of cash and cash equivalents. In addition to that, maintaining the investment grade is an important part of the criteria as we think about the capital structure. And then we are continuing to invest aggressively in our business and the growth opportunities that we have. To your question on a year-to-date basis, we have returned $485 million of excess cash on the balance sheet between the share repurchases, which we guided at the beginning of the year, a minimum of 300. We have already eclipsed that. And in this quarter, we focused on taking out the converts.
So we took out $221 million of convert, how deep the convert is in the money, it trades pretty much like an equity. And like you said, it’s — we are taking that potential future dilution as the stock price continues to rise by taking the convert out right now. So overall, we’ll continue to be flexible in our capital allocation in terms of buying more shares back and we’ll be opportunistic as we look to the share buyback for the balance of this year.
Operator: Our next question comes from Joe Feldman with Telsey Advisory Group.
Joseph Feldman: I wanted to ask about the layout in the store, at least a couple of local stores around me, it feels like you’ve done some things to adjust the layout. Maybe emphasizing private brands a bit more, the vertical brands, I should say, more front and center and in fact, even replacing where you used to keep the big brands, the national brands. And I’m just curious if that’s something you’re testing and what you’re learning from that test? And is that something we should expect to see in more stores in the future?
