Scot Ciccarelli: First, can you just clarify, John, like are you expecting earnings to actually be down in the first half or just lower? And then my main question is, we’ve seen a pretty significant decrease in payables to inventory over the last couple of quarters. This quarter, for example, inventory was actually up over $1 billion, payables were actually down year-over-year. Can you just provide any more color on what’s happening there? And do you expect that to ramp up to kind of the payables inventory to ramp-up back up to historical levels? Or is there some sort of structural change, whether it’s mix or capacity changes, et cetera, that is influencing that?
John Garratt: Yes. So in terms of the cadence for the year, what we said is it really is a back-half story. You really are going to see the growth in the back half of the year. We’re not anticipating a sizable drop in the first half. We’re looking at it to be modestly up to flattish. But — so then it’s really a back-half story in terms of the earnings. In terms of the AP to inventory, what we have seen is the driver of that is really higher inventory levels, coupled with the timing of payments. As you look at the timing of payments, one of the things, for instance, that impacts with the 53rd week, it then pulls in the week one rent payment. So as we look further, we expect inventory levels to normalize. As you look at — in Q4, we saw our inventory per store dropped in half.
It went — it was 14% on a per store basis, which was about half the growth rate we saw in the previous period or previous quarter. And again, it reflects the same drivers that’s really the product cost inflation and a greater mix of higher-value products, particularly in NCI as we completed the rollout of that. Important thing to note here is it is seasonal goods or early seasonal goods was the other driver. But it’s important to note that these are evergreen-type products, which aren’t time-sensitive. So we feel really good about the quality of the inventory, the ability to move through that and expect this to continue to normalize as we move through the year.
Operator: Our next question comes from Rupesh Parikh with Oppenheimer.
Rupesh Parikh: I also wanted to ask on CapEx. So historically, CapEx has been about 3% of sales. And last year and this year, it’s about 4%. So just want to get a sense of where you think the normal level of spending could be in a normalized environment as a percent of sales or any other commentary?
John Garratt: Sure. Again, getting back to the capital, a big driver of that was the inflation as well as the stepped up real estate and the number of projects we’re doing in terms of DCs, working on three DCs in one quarter. So again, feel great about the returns of these. I don’t want to speculate on — and give future guidance on CapEx. Could see an environment where with the inflation coming down, it would moderate that. But more to come in terms of the CapEx, but what really, really focused on is the returns of these and feel great about the returns and we’ll see what’s required to grow the business going forward, but more to come.
Rupesh Parikh: Great. And then maybe just one follow-up question. So DG Media, the commentary is very positive there in terms of what you’re seeing with your vendors. As you think about the dollars there, how do you think about reinvesting the business versus flowing that through the bottom line?
