John Swygert: Yes, I think, Eric with the — obviously, we plan the models. We’ve always said before that even in the pandemic, we plan the 1% to 2% comp all the time we build our infrastructure off the 1% to 2% comp. There is no need for us to build a 3% or 4% comp and then disappoint the street. There’s a lot of uncertainty out there still. So for us to be cautious is the prudent thing to do and that’s how we manage the business. As we always say, we are not going to turn the registers off. But if customers come, we’re going to go and drive them into the store to deliver much more profit to the bottom line for the shareholders. So that’s what we’re planning to do and if the sales are stronger, we will deliver the earnings to the shareholders.
Eric Cohen: Good. And it’s great to hear you guys are now exploring the store remodel
Eric van der Valk: Result standpoint, we do like kind of the initial indication of positive results in sales, not ready to commit to a specific comp lift. But we do believe the ROI is more or less in line with the return we would get on a new store which is, call it, one to two years.
Eric Cohen: Great. Thanks a lot.
John Swygert: Thanks, Eric.
Operator: Thank you. One moment for our next question. And our next question comes from the line of Jeremy Hamblin from Craig-Hallum. Your question, please.
Jeremy Hamblin: Thanks, and congratulations on the momentum and strong results. I wanted to start with the impact of the distribution centers. In terms of the potential impact to results or margins, both in 2023 and 2024 and get a sense, Eric, on what you think what the potential drag might be in those years, but then also, when we get out in the back end of this, you noted that it’s going to allow you to support 700 locations or so, but wanted to get a sense for potential impact of reduced stem miles and so forth, the type of margin benefit you might be getting from that?
Eric van der Valk: Sure. I’ll answer more of the operational piece of the question and Rob will take the financial piece, Jeremy. We do believe in terms of throughput and overall capacity that we’re very well positioned for the growth in our business in 2023 and beyond, especially with the opening of the Illinois building in 2024. 700 stores is probably a little bit conservative in terms of what we could support going forward once all of these investments have been made. So, I’ll leave the financial question to Rob.
Rob Helm: From a 2023 perspective the York, Pennsylvania expansion, we really have no dilution to margins for this year, because it’s an existing building that we’re already in. The Princeton, Illinois building in 2024 would have, say, 10 basis point to 20 basis point drag on our second half gross margins at that time.
Jeremy Hamblin: Okay. And then what are you thinking in terms of — was there reduced transportation cost once we get those in to support store-based, what is the kind of a long-term benefit of it that you expecting?
John Swygert: Jeremy, obviously, it’s all kind of blended in there. Obviously, we need to open up that four distribution centers in order to service the stores, that’s just a strict volume that comes through the boxes and, obviously, there is a freight savings, but basically our impact that we give to you is net-net, that’s the net impact of the margin and it’s probably, call it, 10 basis points to 20 basis points on the back half and that’s including the freight savings offset by the incremental cost of the four walls that we built.
