Mike Baker: Hi, two quick ones. One, with April – end of March, April being a little bit slower because of the weather, does that – are those sales off? Or does that get made up if and when the weather turns better?
Jeremy Fletcher: Yes, Michael, it’s always a little bit of a tough question to answer. Often that is the case with spring business that it’s just a shift in demand. I think, I think more broadly, the way that we view that is that none of the timing of what we’re seeing or none of the impacts affect kind of core fundamental underlying demand within the industry. So it’s always a little bit tough to know will you get it rebound? How much can you really measure it when you do – but more broadly speaking, as we move further into the quarter, that becomes less important but dynamic is just the modest strength in our business will kind of prove out as we move into the balance of the quarter.
Brad Beckham: Yes, Mike, there could be some of the discretionary. There could be some of the short-term stuff that could potentially be lost. But I think as we always say, and we still believe this as much as we ever have that the underlying drivers of our business are absolutely there. When you look at vehicles miles driven, you look at all the things that we look at to drive our business, average age of vehicles, not only in the U.S. but in North America, we still feel really good that demand is going to continue to be there. Could it be one of those years that the lower-end consumer is pressured very potentially. But as you know, Mike, when in tough years or when customers go through tough times, our industry is not immune to that. But it’s more short term. And then as things move on, people hold on to their cars longer, they’re working on their cars more often. And mid-to-long term, we couldn’t feel better about how we’re set up from a demand standpoint.
Mike Baker: Perfect. That makes sense. The other question I want to ask much more bigger picture, longer term, have you ever – or could you ever talk about what you see as the potential size of your business down in Mexico, I think you have about 63 stores according to the press release here. What can that be over time? One of your competitors, I think, as close to 1,000? Any thoughts on where Mexico could be for you longer term?
Brad Beckham: Sure, Mike. Absolutely. Well, we’re really excited about the Mexican market. We acquired Mayasa back in 2019, and we had our eyes on that market for a long time. And to your point, one of our toughest competitors has done an amazing job down there for several decades and has a tremendous business down there. That said, it is so fragmented down there, Mike. When you look at the average age of vehicles in the U.S. at 12.5 years [ph], but then you look at the Mexico market at over 16 – 16 years of age on the average vehicle and how fragmented the independent market still is down there, we see a tremendous runway. I mean that’s why it was our first international venture. We have a great team down there. The timing of when we acquired Mayasa back in 2019, we acquired a lot of great team members.
We acquired a base of people and distribution. Since then, we got our – we had our state-of-the-art O’Reilly prototype distribution center opened last summer. And so that enables that growth that you’re asking about. I don’t want to put a number on revenues or store count over time. But what I can tell you is that’s going to be – it has the opportunity to be a good portion of our growth over the next many years. And there’s no reason that we can’t get after Mexico, no different than we have in the U.S. from coast to coast.
Mike Baker: Thank you.
Brad Beckham: Thank you, Mike.
Operator: Thank you. We have reached our allotted time for questions. I’ll now turn the call back over to Mr. Brad Beckham for closing remarks.
Brad Beckham: Thank you, Matthew. We would like to conclude our call today by thanking the entire O’Reilly team for our unwavering dedication to our customers and the outstanding results you produced in the first quarter. I would like to thank everyone for joining our call today, and we look forward to reporting our second quarter results in July. Thank you.
Operator: Thank you. This does conclude today’s conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.
