Lauren Hobart: Yes. Warren, we are being conservative on the low end of our guidance just given — Navdeep just said, first of all, we compete with everyone in the world during the fourth quarter. Also, the consumer is going through an awful lot and we’re just going — we’re trying to be cautious. And so, I wouldn’t read into anything other than we are trying to model in an appropriate level of caution due to the uncertain macroeconomic environment.
Warren Cheng: Got it. Thanks. And then, a follow-up on margins. So just on freight, I think it flipped to a big tailwind around third quarter or fourth quarter last year. How should we think about the spillover into 4Q and 2024? And then also just on — to round up the gross margin piece, how should we think about occupancy expense growth in next year as you sort of ramp up Golf Galaxy and — sorry, Golf Galaxy and House of Sports?
Navdeep Gupta: Yes. Warren, I’ll stay away from 2024 guidance. We’ll provide that at the next quarter. But I’ll — maybe I’ll answer your first part of the question. In terms of the freight expenses, I would say that the freight expenses, to your point, did start to moderate in terms of the growth last year. It’s also we started to see the benefits of the lower freight expenses in the back half of last year. And I would say they were a little bit more pronounced into Q4. So if you look at our prepared comments from last year, you will be able to — you’ll be able to get to a good approximation for the Q4 expectations. And about the occupancy, we’ll talk about more between House of Sport and Galaxy because that all ties into how we think about the overall operating model.
But like Lauren said, the core growth opportunities that we see between the House of Sport locations, the next-gen 50,000 as well as Golf Galaxy, we are very excited about all of those opportunities, and we’ll share more at the next quarter meeting.
Operator: Next now to Christopher Horvers at JP Morgan.
Christopher Horvers: So just following up on — you talked about strength in the business. You talked about strength in back-to-school, in demographics and so forth. A lot of retailers have talked about some moderation in October. So I know you don’t give monthlies, but is it fair to say that there was — the strength was — the comps were highest around back-to-school season and then moderated? And then, I guess related to that, how are you thinking about how the holiday season plays out? Are we reverting back to like 2019 where sales are very focused around events, whether that’s Black Friday and Cyber Monday and then the last two weeks for Christmas?
Lauren Hobart: Yes, Chris, so in terms of the strength of our quarter — the calendarization of our quarter, you are correct, the back-to-school strength drove significant comps in August and September. We did see a moderation in October of comps, but we also had unfavorable weather — as warmer weather as an impact, so nothing significant. But yes, we saw a moderation in October. As we look to the holiday season, obviously, we have the biggest weeks coming up ahead of us, and it will be busy right until December 25th. And we are seeing holidays kicking off, and this has been going on now for a few years. Earlier, in November, we’ve been talking about that for some time. We’re seeing it now, and we expect it will be a key 5 or 6 weeks here, and it will be similar timing to what it was before with events driving a lot of the excitement.
Christopher Horvers: And then my follow-up is, I just think about innovation in 2024 across different categories. You’ve had a lot of success this year on having high heat product and — on the apparel side. You’ve also had expanded a few key brands around the — in the footwear category. So thinking about those categories in particular, how are you thinking about innovation as you look at 2024, and maybe as well on the golf side?
Lauren Hobart: We’re excited. Generally speaking, we’re excited about the innovation in our business. We’re excited about the new formats that we’re innovating. We’re excited about innovation in our service model. And we’re excited about the product that we’re seeing from many of our brand partners. We think it’s going to be very — it will be a great year from — without me giving guidance, I’m excited about the product that I’m seeing 2024. Innovation across the board, categories get interestingly hot from time to time. It’s interesting to see what’s happening with hydration in the past few years. There could be other categories that pop next year, but we see really exciting product in all the key categories of apparel and footwear and golf.
Navdeep Gupta: Yes, maybe, but I’ll add one more point. We still see organic opportunity for us to continue to expand our premium full-service footwear decks into the larger part of the overall company portfolio of stores. And as we do that, that opens up more access to brands as well as deeper access within those brands as well. So there are organic actions that we have at our disposal and quite frankly, that have done really well that give us confidence as we look to ‘24.
Christopher Horvers: And Navdeep, could you just remind us where you are from a penetration perspective on the footwear decks and where it’s going?
Navdeep Gupta: Yes, about 75% of the stores today have that capability.
Operator: We go next now to Michael Lasser at UBS.
