Michael Lasser: So you mentioned that the 2022 34.6% gross margin — let me start that again. You mentioned that the 2022 gross margin of 34.6% is the new level from which you’ll start to move higher from over — from here, yet the 34.6% gross margin last year had a significant amount of inventory liquidation within that. Plus you have the benefit of lower transportation costs. So a, why wouldn’t you get more of that back? And to what degree are you just assuming that transportation costs are going to drive the gross margin in 2023. In a nutshell, why isn’t your gross margin going to be even better moving forward? Are you expecting that promotions are going to increase and that will provide a little bit of an offset?
Navdeep Gupta: Michael, let’s make sure we understand your question currently because — maybe I’ll begin with the middle part of your question. You indicated that the transportation cost was a benefit in 2022. Actually, that is not the case, because we recognize the freight expenses over the turn of the inventory. So by the time we started to see the early benefits of the freight expenses — by the time it rolls through, we actually will start to see the benefit in the second half of 2023. And in terms of the guidance, that’s kind of the first part of your question, what we said about both the sales and the profitability and we’re not indicating to the gross margins. We’re talking about the overall profitability of the company is the new baseline. So, we are very confident in the guidance that we gave that we will improve both the merch margin and gross profit into 2023 over where we finished 2022.
Michael Lasser: Here’s the better way to maybe ask the question because it wasn’t clear, and I apologize for that. Why wouldn’t you get back to the 38% gross margin you had in 2021 when there was less inventory clearance and you should have the favorable transportation costs on top of that? And just in case I want to add my second question, how did the stores that had the full complement of assortment for priority category do compared to the stores that did not have as elevated an assortment within priority categories in the fourth quarter? Did you see a material difference in the comp in those key cohorts of stores?
Navdeep Gupta: Yes. I’ll take the first part, and I’ll turn to Lauren for the second one. In terms of over time, like we have said, there is nothing structurally that is holding us back from achieving that level of profitability that we delivered in 2021. So, over time, Michael, your comment is appropriate. And maybe Lauren, you can take the second one.
Lauren Hobart: Sure. Yes. If you think about our priority categories of footwear, athletic apparel, team sports, footwear — in our premium full-service footwear decks, we are making a larger investment in those, as you heard in our prepared remarks, because it does allow us to have a full assortment, which does really delight the athlete and enable us to drive strong comps. Beyond that, we’re not going to break down how it was — how we did in Q4 by various categories. But generally speaking, our assortment was really strong and drove the comp.
Operator: The next question comes from Brian Nagel with Oppenheimer.
Brian Nagel: Great quarter and year. Congratulations. So my first question is just — I mean a bit of a follow-up. And look, there’s obviously a lot of talk in your broader space about inventory clearance and our normalizing promotions. So, if I hear what you’re saying, is that promotions did not drive the business in the second half of the year. You’re actually optimistic as we look into the first half of ’23, the better inventory availability will help us drive improved sales or further improved sales at DICK’S. So the question I have is, is DICK’S then just not affected by promotions outside of your company, what you’re seeing with other brands or other retailers? Have you just been managing through that?
