Navdeep Gupta: Yes. John, two different answers to that. First of all, if you look at Q4, the difference that you’re seeing between the comp sales and the total sales growth, one, like you said, is driven by some of the new store openings. In addition, the temporary warehouse locations that we have, the warehouse plus stores, as we call them, they are not included in the comp numbers. So the sales that happened during the fourth quarter in those temporary locations are included in that. Coming back to your macro question, we do see a significant improvement in our sales productivity when we convert a store from the basic 50,000 store to a House of Sport location or even a comparable store to a House of Sport location. Considering that the majority of the stores that we have remodeled right now are relocations.
So, those will be in our comp expectation. They won’t be as part of the new stores. And when we open DICK’S House of Sport as a brand-new location, yes, they will definitely start to benefit our new store productivity metrics.
Operator: Our final question today comes from Joe Feldman of Telsey Advisory Group.
Joe Feldman: I wanted to ask about any merchandising changes you might be considering for 2023? Like, are there any categories or certain trends or products that you might be leaning into or emphasizing a little bit more based on what you’re seeing from the consumer?
Lauren Hobart: Hi, Joe. Yes, we are still very-focused on our four priority categories, footwear team sports, athletic apparel and golf. We’re always looking for new trends and new categories. But generally speaking, that’s the 80% plus of our business, and that’s where we’re focused on driving growth.
Joe Feldman: Got it. Okay. So not much newness coming, I guess, for some of those. What about…
Lauren Hobart: Sorry. Joe, I just want to — I didn’t say there wasn’t any newness. There’s a ton of newness coming. I just want to share with you that our priority categories of footwear team sports, apparel and golf are where we’re focused. But there’s certainly a ton of newness across the business.
Joe Feldman: Got it. Okay. Sorry for misunderstanding that. And then, with regards to private label, maybe could you share just kind of the latest penetration and what you saw in the fourth quarter. I feel like you guys usually have shared a little more color there around how the consumer is opting for some of your brands.
Lauren Hobart: Yes. Thanks, Joe. Our vertical brands did tremendously well last year and in the quarter. We are really pleased with how the DSG brand is doing, opening price point brand, high function, high fashion as well as CALIA and VRST, which are filling white space in our portfolio. And even the Hagen brand is doing incredibly well. So as we look to the end of the year, our overall vertical brand penetration for this past year was 14%. We had originally laid out a goal of about $2 billion a few years ago for vertical brands, and we finished at about 1.7. Very excited about both the sales and margin opportunity go forward. As you know, vertical brands have 600 to 800 basis points of higher margin than our average.
Operator: Unfortunately, that is all the time we have today for questions. I’ll now turn the call back to Lauren Hobart, President and CEO, for any concluding remarks.
Lauren Hobart: Thank you all for your time today and for your interest in DICK’S Sporting Goods. We look forward to seeing you on the next call. Thank you.
Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.
