Jared Briskin: I mean, again, we’re really confident where our inventory is getting incredible support from all of our vendor partners, and we want to make sure that our inventory is seasonally relevant on our floors. If you think about the last couple of years, particularly in apparel due to all the supply chain disruption, there really hasn’t been a seasonally relevant apparel story on our floors or anyone else’s floor for that matter. So we still have some things to work through primarily from spring and summer and that was some of the impact that we saw during the third quarter. But again, nothing that we are terribly concerned about. I will — as a reminder, some quarters that were aided by stimulus, as an example, had some gross margins that were at unsustainable levels and last year, the third quarter really was the last one of those. So that’s one reason why we don’t see as much of deleverage coming as we go forward into the fourth quarter.
Bob Volke: Just one last follow up point. I think also, you’re talking about a pretty strong Q4, gets a little bit more leverage and things like the store occupancy bucket. So obviously, would feel like we would see a little bit of improvement on a quarter-over-quarter basis there as well.
Operator: Our next questions come from the line of Justin Kleber with Baird.
Justin Kleber: Mike, in the press release, there were a few comments I was hoping to get some more color on. First, just the opportunities you mentioned around expanding digital capabilities. Is that around fulfillment or maybe what specifically were you alluding to? And then the second comment on identifying opportunities to extend your market reach. Just wondering if that was in reference to continued organic store growth or maybe something else on the M&A front?
Mike Longo: I’ll take those in reverse order. The M&A part of the equation has probably slowed down considerably. I think everyone saw what happened over the past few years and most of the players have been taken off the board. So probably not, but never say never. With regards to expanding our market, we continue to be — see opportunities to open new doors and believe that we disclosed that we opened the Vegas market most recently, that was our new market this year. And the balance of those stores, the rest of the stores that we opened we’re filling opportunities. I personally visited a ton of stores in the past two weeks to include the Vegas market, great stores, great locations, great crews and the product is spot on and the omnichannel capabilities really shine through in those stores.
So very excited about that. The filling stores that I also saw, we’re operating at a very high level, so we’re excited about that. Then as you would imagine, there are all sorts of other opportunities to extend our market reach in terms of inside the categories we already owned, continuing to exploit opportunities there, as well as adding two categories that we aren’t currently participating in, in a big way. Those things always cycle up and down and you’ll see the change in mix at the macro level between men’s and women’s and kids at the micro level between denim and twill, and all those things that apparel and footwear retailers obsess over, that’s we get paid to do. That detail that we go through, well we don’t often talk about it, is part of the opportunity that’s there, and what frankly we get paid to do is exploit those opportunities.
Then with regards to digital, we have the best mousetrap and we’re very proud of what we have there, and that best-in-class omnichannel experience we know is a bit of a race though. And so we don’t breast on our borrows and so we meet weekly on the list of opportunities that we have, the things that we can do and the list is longer than we can get done in any given year. So the opportunity is there. Bill, if you want to expand upon that, please.
