Melissa Rasmussen: Okay, great. Hi. So, we are investing currently and we’re focused on driving long-term success post-pandemic. We believe our business model is strong and we believe that it will continue into the future. What we have incorporated into our guidance currently, anticipate the drag on margins related to these investments. We do believe getting back to mid-single digits will be a key unlock for us, as we think about growth in the future. The investments that we’re making currently will enable us to be able to handle the capacity constraints that we have currently. The demand will be there, the doctors will be there, we’ll be able to span across geography in time to be able to service the demand that we have at the time that we have it.
And so, as I said, mid-single-digit, comparable store sales growth, at that point, we’ll begin to leverage the higher costs that we’re experiencing this year. And from there, once we have the remote care and electronic health record implementation completed substantially mid to late 2024 and fully productive in 2025, we expect approximately 100 basis point improvement on our operating margin. And then from there, we would expect to further take the opportunity to expand and leverage through sales growth, in addition to driving productivity improvements across the organization based on the investments that we’re putting in place today.
Reade Fahs: And to the second part of that, Michael, there is nothing wrong with our business model. The only challenge is our ability to execute our business model, which is about having the doctor in the store. If we have the doctor in the store, the consumer demand is there. We think our business foundation is strong. Consumers want to come to us and we believe that the actions that we’re taking are solving this great challenge of the doctor piece, we think that there are two great trends that we are tapping into in our actions or three great trends actually. One, with remote medicine, we believe more and more doctors are going to want to practice that way in the future. Two, we think that doctors in general, healthcare workers in general, and frankly, all workers in general, are seeking greater flexibility in their working world.
The scheduling options we have put in place are addressing that. And thirdly, we think there is an ongoing trend in the optometric markets toward more of an employment model and that is the model that we favor as well. So, in short, we feel that the doctor shortage challenges our ability to execute the business model that consumers really, really want and we think our actions of remote medicine and scheduling options will tap into the way optometrists want to practice now and will ever more so going forward.
Michael Lasser: Thank you very much.
Operator: One moment for our next question. Our next question comes from Zach Fadem with Wells Fargo. Your line is open.
Sam Reid: Thanks, guys, for taking my question. This is our Sam Reid sitting for Zach. Wanted to dig a bit deeper on lower eyeglass margins and maybe parse out the effects of trade down versus stepped-up costs.
Reade Fahs: Could you repeat that, Sam? I’m sorry, we’re just — could you just repeat your question one more time?
Sam Reid: Sure, absolutely. So, I just want you dig a bit deeper on eyeglass margins during the quarter and maybe parse out any effects from trade down versus stepped-up costs.
Melissa Rasmussen: Yes. As it relates to eyeglass margins, we still believe that our margins are healthy. We are experiencing some product cost increases as we look forward to 2023. However, we are seeing some trade down from our consumers, from the higher-income consumers as we believe some of the lower-income consumers have left the market at the moment. We do believe the continued trade down, those customers are really targeting more of the higher-end product that we have in place and their managed care benefits can get them farther at our stores than they can at our competition.
