Lauren Hobart: Joe, I think what you’re picking up on is that we have adopted a very flexible approach to how we lay out products based on in-stocks, based on what’s hot with the consumer at the moment. And so — no longer are the days where you’re going to walk into a DICK’S store and see everything laid out the same way. We are constantly optimizing. We do space optimization frequently and move things around as needed.
Joseph Feldman: Got it. Okay. And then just wanted to get an update on maybe House of Sport and Public Lands, just latest learnings and expansion plans for those two concepts?
Lauren Hobart: House of Sport has been absolutely tremendous, both in terms of how the locations themselves are doing. They far exceeded our expectations. But also in terms of what we’re able to take from House of Sport and bring down to the rest of our chain in terms of service levels and products and even — we have some new products that have launched there that have done really well the rest of the chain. So really, really excited about House of Sport. Public Lands also equally really excited about. We have just launched, I think, five new Publicly Lands stores about in the past month. They are meant to tap into a very broad outdoor consumer, and they are doing an incredible job serving those explorers very well. So we’re very excited. Public Lands, still in test phase. House of Sport support definitely a key part of our roll forward strategies.
Operator: The next question comes from Seth Basham with Wedbush Securities.
Seth Basham: I’m sorry to parse words, and maybe this is just a nuance, but regarding the merchandise margin improvement that you’ve seen since 2019, you’re indicating now that you expect to retain a significant amount or a meaningful amount of it versus previously expecting to retain a majority of it. Is that accurate?
Navdeep Gupta: Seth, I would say we are still guiding that we will maintain a meaningful portion of that margin gain. So again, maybe I’ll recap some of the structural reasons that we are seeing, and we have that confidence. If you look at Q3, the performance that we saw in Q3 from the highly-allocated product is what drove a significant amount of our success in third quarter. And to me, that’s kind of a go-forward strategy, and that will be a continued benefit that we will keep. The tools that we have, whether it is Going, Going, Gone! or the promotional and the pricing capabilities that we have delivered is something that is really, really strong compared to where it was in 2019. And that, again, gives us a tremendous amount of confidence.
And then the product mix, I know there was a question on vertical brands. The vertical brands have 600 to 800 basis points of higher margin. And these brands, again, resonated really well in third quarter. And the hunt penetration, that used to have almost about 1,700 basis points lower margin, and that has become a meaningfully small piece of our business. When you look back at all of these structural drivers, and you look at the performance that we delivered in Q3, that’s what gives us the tremendous amount of confidence that we can maintain a meaningful portion of these gains versus 2019.
Seth Basham: That’s helpful. But just to clarify, you don’t expect to necessarily maintain majority anymore, just a meaningful amount?
Navdeep Gupta: Yes. Yes, you can parse the words, but we are very confident that we’ll maintain a meaningful portion of those gains versus 2019.
Lauren Hobart: I think — just to add on this, it’s important to look at our full year results. We’ve been talking about full year and we absolutely expect to maintain a significantly meaningful amount of our margin improvements.
Seth Basham: Wonderful. And just as a follow-up question regarding the promotional environment outside of apparel, how would you characterize that relative to pre-pandemic levels and your expectations into the holiday season?
