So we’re really confident in that portfolio of initiatives. We feel like it’s in our control. We’re managing the roadmap and the pacing of that and have a lot of confidence as we look at the longer-term margins that we can deliver against our stated targets there.
Marvin Ellison: So, Simeon, this is Marvin, I’ll add this perspective. The reason why we call it as a perpetual productivity improvement initiative, because we’re trying to stay away from one-time events. We think that good companies create an ongoing sustained process of improvement and productivity gains. And so we have a roadmap of initiatives. And it’s important that it’s not just about store operations. You heard Bill talk about the PPI initiatives specifically for merchandising. If Don Frieson was here, he could speak specifically to supply chain and Seemantini could speak specifically for IT. And so this is a culture that we’ve created here that candidly did not exist. But the key word is perpetual. And that means that it’s ongoing, it’s consistent and it’s sustainable.
And so as we look at ’24, you know we’re not going to get into the details. What Brandon is reinforcing is that we have a list of things that we’re going to do. We’re well aware of what we’re overlapping. We understand some of the one-time time factors we’re going to face and we’ve built processes, initiatives in place to address that and we’ll be more transparent and more detailed in our Q4 call because we think it’s really important to lay out to you all exactly how we see it and the steps we’re going to take.
Simeon Gutman: My gentle follow-up to that, Marvin, is you have OpEx productivity and PPI. Those are the two biggest unlocks. Just to clarify or an assumption, it doesn’t sound like what the business comps has anything to do on what those two buckets produce. And then is there a situation in which those two buckets actually produce more in terms of sequencing in ’24 than what it was yielding in ’23?
Marvin Ellison: So I’ll give you the perspective of a long-term operator. If we get the top line, PPI works a whole lot better. So irrespective, we’re going to intensify this focus. Obviously, if we have a softer top line perspective, we’re going to be a lot more aggressive in the PPI side. But irrespective of our comp outlook, PPI is going to be in existence and we’re going to work really hard to make sure that we hit some of the key targets that we lay out. And again, you have our commitment that as we lay out 2024 as best we can, we’ll be as transparent as possible about all of these things in our February call.
Simeon Gutman: Thanks. Happy Thanksgiving.
Marvin Ellison: Yeah. Thank you, Simeon.
Brandon Sink: Thanks, Simeon.
Operator: Our next question comes from the line of Chris Horvers with J.P. Morgan. Please proceed with your question.
Christopher Horvers: Thanks. Good morning, guys. Wanted to focus a bit on the top line. We’ve seen increased big-ticket sensitivity. Others are talking about — you mentioned flooring, people are doing smaller projects, you’re not buying suite of appliances, you’re doing the bathroom, not the entire first floor and flooring. I guess, so my question is why isn’t the Pro and the remodel business or maybe the remodel business because then the answer is different from you on the Pro because of share, but why isn’t the remodel business and the Pro business the next shoe to drop? And given the changes that you’ve seen over the past three or four months, how are you thinking about the bottom of the comp cycle and sort of when does this start to revert back to positive?
Marvin Ellison: So, Chris, I’ll take the first part of that then I’m going to just let Bill Boltz talk about some of the initiatives relative to addressing some of the top line concern. So specific on sales for us, when we look at the quarter, we look at it from a penetration, from a DIY perspective and a product mix. So, as a reminder, 14% of our revenue comes from appliances. So when you have pulled back on some of these big-ticket categories like appliances, it’s going to be disproportionately impactful for us. Having said that, we look at the Pro, and to your point, we had a positive comp. And we’re really pleased with that and I went through some of the investments we’ve made over the course of the last four years that we believe are paying dividends relative to that specific smaller to medium Pro.
And the reason we think that, that specific segment of Pro will remain healthy, although cautious, as we’ve noted from our survey, is because of the age of homes. I mean it is a foregone conclusion that if you have a house over 40 years old, things are going to break and when those things break and those repairs are required, the smaller to medium contractor is typically the one that’s going to get that call. And these Pros are incredibly transparent with some 70%. So they feel really good about the backlog, but they also say that when they watch the news and they read the headlines, they’re a little cautious because they just don’t know what’s lurking around the corner, but they’re busy because these homes are old, these homes are now turning.
