Operator: We’ll go next now to Will Gaertner at Wells Fargo.
Will Gaertner: Could you guys just give us a breakdown of store openings for the balance of the year and perhaps into next year, how you’re thinking about store openings and how we should be modeling that?
Navdeep Gupta: Yes. The store openings for Q4 are primarily done with the holiday season. So, not too many stores are expected to open here in the fourth quarter. What we have guided in terms of the preliminary 2024 expectation is 10 House of Sport openings. You can see us continuing to open more Golf Galaxy locations into 2024. We continue to be really pleased with the overall performance of the Galaxy Performance Center. In addition, we will also be remodeling our stores to continue to keep our overall assortment within those stores fresh and have the right capability and a experience investment in the core part of the DICK’S stores as well.
Will Gaertner: Got it. And then maybe just talk a little bit about inventory in the channel. Where are you seeing — what categories are you seeing are heaviest? Which are lean? Just give us a little bit of context in what categories you’re seeing from an inventory perspective?
Lauren Hobart: Yes. Well, there’s nothing extraordinary or out of the ordinary going on with inventory in the categories or where appropriately moving product the whole industry is, but it isn’t the way it was last year where there was really distorted levels of inventory.
Operator: We go next now to Joe Civello at Truist.
Joe Civello: A quick follow-up on the House of Sport locations. Can you guys call out anything in terms of ticket or transaction benefits that you see at House of Sport versus other locations?
Navdeep Gupta: Yes. I would say, first of all, our overall portfolio of the House of Sport is resonating really well with the athletes. So, we see benefits in how many athletes and how far they’re traveling to come and visit these experiential locations that we have. In addition, we are also seeing benefits in the overall basket size. So, really encouraged by the makeup of the athletes, the engagement that we are able to drive with those athletes, as well as basket size.
Operator: We’ll go next now to Justin Kleber at Baird.
Justin Kleber: Just one for me on the implied 4Q revenue guide. If I take the midpoints of the comp and the noncomp benchmarks you shared, it looks like guidance assumes that revenues will lift sequentially kind of in the high-teens range, if I exclude the extra week. And if I go back prepandemic, your 4Q revenues used to grow north of 30% quarter-over-quarter. So just — can you help me, I guess, reconcile why that’s not the case anymore? Why that relationship doesn’t hold? Are you just more disciplined with promotions around the holiday, or is the mix of the business that much different? Just trying to understand that. Thank you.
Navdeep Gupta: Yes. Justin, this is Navdeep. I’ll take an attempt at that. The way we have thought about fourth quarter is very comparable to how we think about the holiday season. Holiday season is a very distinct and a different season when we compare that to the back-to-school season. So, we look at it much more on a sequential year-over-year basis versus the 3Q to 4Q build. But to your point, when we look — the fourth quarter expectation that we guided to, first of all, we are up against a 5.3% comp. It’s a much more wider competitive set compared to the back-to-school season. And we continue to be really confident on the high end of the expectation that we have — that we have driven about the things that we have within our control.
We moderated the low end of our Q4 expectation just considering the macroeconomic landscape that we’ll be competing with everybody else in the fourth quarter. So, we feel we have appropriately balanced the outlook and maybe we can take that offline and if you have a deeper question on that.
Lauren Hobart: Yes. Justin, I would just add one thing that — again, we don’t have the numbers compared to multiple years ago on this particular topic. But I would hypothesize that the strength that we’ve had in our business in Q3 between back-to-school categories, team sports over the years and just footwear and apparel is probably — has even smoothed out that curve a little bit.
Justin Kleber: Yes. Okay. That’s makes sense, guys. Thanks so much. Best of luck over the holidays.
Operator: And our final question comes from Daniel Imbro at Stephens.
Daniel Imbro: Maybe first one just on inventory and then the optimization actions. I guess, the inventory write-down, Navdeep, is that all within the outdoor categories that were maybe left over from last quarter? And is there anything left to do on the inventory side? It does look like on the website, there’s still some decent promotions and bikes and outdoors. So trying to think about are we through that inventory kind of write-down or optimization?
