Patrick Moore: Hey, Simeon, good morning this is Patrick hitting on new stores do want to add that assuming the year into – end of the year timing works out? Well, we do expect to be at the hopefully that tip top of that 65 to 70 range for 2023. So, we’re happy, really happy with what we’ve accomplished over the last two years for our real estate and store teams in terms of continuing the unit growth. In terms of how we’re thinking about next year, look, we’re in the midst of planning, I will tell you that there are a lot of factors that come into that every year. State site brands, doctor recruiting optionality remote it’s has become a significant factor, as it is not plan A but it is a really nice plan B. We’re looking at all that very carefully right now and expect to be able to share those details with you in as we close the quarter and fourth quarter.
But rest assured, we’re still focused on taking advantage of the whitespace opportunity that remains in front of us, while carefully balancing the other dynamics that we mentioned.
Simeon Gutman: Okay, and then a follow up. Oh, sorry, go ahead.
Melissa Rasmussen : Oh, I’m sorry, this is Melissa. So just to add on to that a little bit about the doctor component. So, we don’t expect that the supplies environment will change as it relates to doctors anytime soon. But what we are doing, we had implemented an incentive compensation program to incent the doctors to be more productive. And that would, their level of productivity would drive their incentive compensation. And in addition to that, as far as base wages go, we had previously seen wages expand in the low single digit range, historically, and now that’s closer to the mid-single digit range. And we do expect that going forward. At this time, we will leverage our cost structure at mid-single digits. And we’ve laid out the plan to get back to mid-single digits as we roll into 2025.
Simeon Gutman: Thanks for that. And then my follow up is on SG&A, I saw the factors in the release, especially regarding I think incentive comp, which you just mentioned. Can you talk about advertising expense? Is that, are you spending along the lines at which you planned or did you spend any more and then the outlook for that for the rest of the year, please?
Melissa Rasmussen : Yeah, so with advertising, we do see a little bit of advertising leverage as we move into fourth quarter. And that’s just due to more productive advertising, that we’re expecting to have SG&A. Overall, yes, we will expect to be leveraged for the full year. And that is largely related to the incentive compensation reset that we spoke about initially with our year end release.
Operator: Our next question comes from the line of Dylan Carden from William Blair. Your line is open.
Dylan Carden: Thank you. Just curious what percent of your stores are dim, sorry, if I missed that, and your counter stores dim if it’s got remote capacity. And maybe how that’s trended over time?
Melissa Rasmussen : Hey, Dylan. So, we didn’t specifically quantify the number of them stores because that number changes quite significantly, because then it is less than three days of covers. So, if you have part time doctors, you may be dim one week and not the next week. So, that number is a little bit harder to nail down. But we were able to nail down the productivity drag or a dim store, which is about 50% of productive, fully productive store. Now with that we are enabling remote in as many stores as possible that are specifically impacted by dark and dim. And that increases the productivity in double digit range based on adding remote to a darker dim store.
Dylan Carden: So, keyless directionally give us a sense of how dim I mean, if you can nail down the productivity, I guess how many stores are you counting in that calculation? And then just sort of how that’s worked through the year?
Melissa Rasmussen : So, as far as so with dark stores, we talked specifically about we’ve improved that from the mid-single digits at the high point to now we’re at low single digits within stores, again, that number changes quite significantly and from period-to-period year-to-year. So, we will continue to figure out ways to explain that to you all. But dark is the one thing that we can nail down. We do have more dim stores than dark stores. And that impact though as I said with dim stores in a little bit less than it is with dark stores. So, we’ll continue to work on that. We’ll, we’ll continue to put remote into those stores and increase productivity with the levers that we do have.
Dylan Carden: Okay, and then in the services and plan segment, just thoughts on kind of the margin degradation. And plans to kind of get that back, if you can get back to more historical ranges.
Melissa Rasmussen : Yeah, so what we had talked about initially was that we would continue to expect to see the doctor cause headwind. And that is being offset partially by the exam expansion, and exam pricing initiatives. We will continue to work to get back to mid-single digits, which will leverage that cost structure. And with the warranty plans, revenue, that’s a component that our stores will be working on. And we’ll continue to expand those offerings so that we can service our customers.
Operator: And our last question for today will come from the line of Molly Baum from Bank of America. Your line is open.
Molly Baum: Hi, thanks for taking my question. I just had one quick one kind of high level on the competitive landscape. I know you talked little bit about you’re leveraging marketing and advertising dollars a little bit better. Other competitors this week have announced that they’re returning to growth and marketing and advertising dollars. So, just curious how you feel about the current competitive landscape. And then I guess on top of that, how you’re thinking about Walmart as a competitor now that they’re taking their optical business in house. Thank you.
Reade Fahs: Good. So, overall, we haven’t seen significant changes in the competitive landscape. Yes, I – we’re aware that one competitor did announce more aggressive marketing effort, you’ve got to just think about market share in this category. Because it’s just a highly fragmented category. So, an increase in marketing spending from one competitor doesn’t drive massive pieces. And especially sort of different competitors, attract different customer bases. Ours is a more lower income budget conscious, less, less high-end consumer. And so oftentimes, we’re talking to different consumers in our marketing and, and while Walmart is yes, sort of taking the 227 stores, we’re not expecting them to be a more aggressive competitor, and they do not historically do marketing of their Vision Center business.
In general, the competitive landscape I think, is pretty similar to the last call that we did, and, and ecommerce has stayed very stable for a long time as a percentage of the business of the category.
Molly Baum: Got it? That’s it for me. Thanks so much. Appreciate it.
