Lauren Hobart: Thanks, Brian. Yeah. So, we do feel that we are appropriately reserved for shrink. We’ve been doing significantly more inventory [pauses] (ph) and do believe that we have an appropriate reserve going forward. In Q1, it’s important to note that we are still up against the headwind of the fact that we didn’t put the extra shrink reserve in until — the end of Q2 last year. But, overall, we’re doing a lot of things in store to mitigate. We’re working with loss prevention and local law enforcement as well as moving products through the [blacklist] (ph) store that are high shrinks. So, we have a lot going on, but overall, we are appropriately reserved.
Brian Nagel: Got it. Thank you. And then, my follow-up question, this is a bit of, I think, a follow-up to the prior question, but just with regard to transaction growth. So, DICK’S has done a phenomenal job here driving transaction growth, and you’re clearly a standout amongst most retailers doing. So, you’re recognizing all the changes that have happened in the business and the merchandising and all, but is there anything you can kind of help us understand better underlying drivers of that transaction growth? Are you seeing any type of variability across the chain, maybe within departments, so we can get a better understanding of kind of sustainability of that?
Lauren Hobart: Brian, I really think the transaction growth has so much to do with things like our differentiated product and the access that we have. But on top of that, when athletes are coming into our stores, our team or shopping online, our team is striving to make that omnichannel athlete experience really satisfy and they’re making great progress there. And then, also I think the brand and the fact that we are a brand that is very much based in our values, and we continue to talk about the power of sports. So, all of those things are working together and driving strong transactions.
Navdeep Gupta: Yeah. Brian, I’ll add to the fact that if you look at it in 2023 and in fourth quarter, we gained 7 million new athletes in 2023. And just in fourth quarter alone, we gained 2 million new athletes. So, back to Lauren’s point, the athlete database that we have, the work that we have been doing around personalization and the loyalty and our ScoreCard program, in addition to having the right product, ability to be able to go and address and discuss those type of features and product availability in our store is resonating very well as well with our athletes.
Brian Nagel: Very helpful. I appreciate it. Congrats again.
Navdeep Gupta: Thank you.
Operator: Your next question is from the line of John Kernan with TD Cowen. Please go ahead.
John Kernan: Thanks for taking my question. Congrats on another great year.
Navdeep Gupta: Thank you.
John Kernan: I think you said the House of Sport, they open at maturity. How do we think about the comp contribution from both House of Sport and the next-gen 50,000 square foot stores if they’re opening at maturity? How do we think about them, the comp contribution in year two and beyond going forward?
Navdeep Gupta: Yeah. John, I think that there are two-part question there. So, I’ll start with the second part in terms of the comp contribution as we look at the growth in the second year. And that has been one of the questions. We are very optimistic and confident in the results that we are seeing. So, the first of all, we don’t have a large sample. There are two stores of our stores that were opened in 2021 and 2022 that actually have comped the second full year. And what we saw was in 2023, they actually posted comp sales growth again in year two. So, really happy with the overall performance. In terms of the comp contribution and — so, the opportunities when we are relocating, let’s say, a 50K or 80K box that goes from somewhere to $19 million to $20 million going to closer to a $35 million omnichannel sales, that’s the comp contribution that we are really excited about as well.
And then — and I would be remiss if I didn’t add, the differentiated product that we are able to get through these things, through the next-gen 50K or House of Sport location, that allows us to cascade that innovation and newness down into our — into the normal DICK’S stores as well is allowing us to continue to elevate the overall portfolio of the stores and the performance that we are seeing out of those.
John Kernan: That’s helpful. Thanks. I guess my follow-up just, shift to more of a category level. A soft line apparel footwear, I think it’s going to be around 60% of the business this year. It’s not terribly different from where it was historically, but I think we can all see that the allocations from vendors have gotten significantly better. The private label offering has clearly increased as well. I think this has contributed to 255 basis points in merch margin expansion since pre-COVID levels. How should we think about future merch margin, particularly as all of the soft line categories seem to be elevated at this point?
