And our consumers are — they slant to a little higher end. Their balance sheets look pretty good. So, we do think that hopefully, that will — as time goes on and people are going to say, you know what, I’ve waited long enough, I’m going to redo that bathroom. I’m going to redo that kitchen. So, I think between existing home sales probably slight, maybe low, but they’re not going to be 20% year-over-year low. And then I think as time goes on, I do think people will take on more because the value of their homes is pretty good.
Bryan Langley: Look, this is Bryan. I mean if the duration lasts longer as you’re alluding to, if it does, it’s going to put a lot more pressure on our independent competitors, which could also allow us to gain even more market share. So, just one way to think through it.
Operator: Our next question come from the line of Zach Fadem with Wells Fargo. Please proceed with your questions.
Zach Fadem: I want to follow up a bit on that last question. And maybe you could talk about the historical correlation between your business and existing home sales and how that relationship has held up or changed over the years? And then just considering the current dynamics around rates and home prices and all the folks who’ve locked in low mortgage rate I mean, is there any reason to believe that the historical correlation is still the right way to think about modeling your business? Or could that actually change?
Trevor Lang: I do think that’s been the highest macroeconomic factor that correlates to our business. You go back and look at kind of late ’17, ’18 or ’18 and ’19 when existing home sales slowed when interest rates went up and our business decelerated some. Obviously, you’ve seen that same thing happen, starting last year July. Existing home sales fell a lot. They were for 20% to 35% per month for – as we said in the last 12 months. And you saw our business slowdown and actually turn negative for the first time. So yeah, I think that’s right. I think as Tom mentioned though, doesn’t feel like we are going to way below four million existing home sales, a tweak over last 50 years. I think that’s only happened once. So, we just need them to quickly turn into negative.
And I think then we can grow from there, is our view. When we look at our model and what we’re doing versus the competition we’ll continue to make huge strides forward. I think we feel as good about our people, our turnover is low. Our customer service scores are high. Our innovation and the assortment is fantastic. So, that’s my best answer.
Bryan Langley: Yeah, I wouldn’t say much different. I don’t think that there’s anything that’s happened in the last year or two that’s going to change. Existing home sales are positive year-over-year that’s a good thing for Floor & Décor.
Zach Fadem: Got it. I appreciate the color. And then I think you made a change to your private label credit card. Curious if you are seeing any impact from the change of the tightening credit terms as a whole, specifically on that card as well as for your customers in general as well the Pro.
Trevor Lang: Very perceptive. We did make a change in May. We went with a bigger vendor that we felt was more aligned with us. Early reads, it looks like their approval rate is slightly better than the previous provider and we feel good about it. And they’re a big partner. They do a lot of private in in the largest private label credit card company in United States that they’re a good partner with us, and we’re optimistic about it.
Zach Fadem: Got it. Appreciate, thanks guys.
Trevor Lang: Thanks Zach.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Seth Sigman with Barclays. Please proceed with your questions.
Seth Sigman: Okay. Great. So a lot of the slowdown here is happening through average ticket. And I guess we’re all trying to figure out where that settles your average ticket is up, let’s say, 25% versus 2019. And it seems like a portion of that was same SKU price increases, but maybe a bigger piece of that was the impact from larger projects and mix. S So I was hoping you can maybe break that down for us a little bit more. How much upside to ticket came from that increase in average square footage per project? And then how do you think about where that normalizes. So — does it go back to 2019 levels? Does it go lower based on EHS? How do you think about that?
Trevor Lang: I think our ticket will bounce — round out where it’s going it’s going to be this year. And then I think to grow in the future because our e-commerce business is our highest ticket and that will hopefully continue to grow at a faster rate themselves like it has for the last 12 years. Our Pro ticket is higher than our homeowner business that we’re hopeful will continue to grow our design ticket is higher. Design is a big focus for us, as Tom mentioned, that’s up 330 basis points. So, I think we’re just going to kind of level out and see what this year is. Our RAM sales, which really — most of those get tendered through the stores, those are big commercial sales. Those are all higher tickets. So, my expectation is once we get through this arguably one of the worst housing markets we’ve seen in the last 50 years, those strategic initiatives that we’re focused on will drive ticket growth.
