And we are going to continue to lean into that, both directions. And we – that’s really what got us to where we are at today to kind of your – the root of your question is where is that line of what’s the right spend and that really just lanes us back to our guidance. We feel really good about every moving piece of our SG&A. We feel good about the returns as well as CapEx and everything that we are talking about when it comes to tech investments, when it comes to safer vehicles, the image and appearance of our stores and all the things you have heard us talk about, we are going to continue to lean into that as you have seen.
Brent Kirby: Simeon, I…
Simeon Gutman: And a follow-up – oh, please.
Brent Kirby: Hey Simeon. Just one other thing to maybe add to Brad’s comment and kind of speak to your question too is, obviously, we just leaned into an acquisition, too, as part of investing in a future opportunity. And we feel good about that investment as well, still more shape to come to that over time, but definitely continue to lean in where we see opportunity.
Simeon Gutman: Yes. And a quick follow-up, more short-term, I don’t think I heard it in the prepared remarks, maybe you never venture to guess what weather means in a quarter. Given that you face 2 years of favorable weather, but any idea and is there deferred maintenance or that got resolved with the ongoing run rate of the business?
Jeremy Fletcher: You are talking about fourth quarter, Simeon?
Simeon Gutman: Yes, any fourth quarter impact? And then does that create deferred maintenance, or has that just gotten realized as the weather has become more favorable for maintenance and repair?
Jeremy Fletcher: Yes. No, I appreciate the question, a good one. For sure, there is a fourth quarter impact. I would tell you that for both the weather impact, the calendar, the timing of the holiday was a little bit unfavorable to us. The bulk of what we saw was anticipated and would have been built into how we thought about the guidance as we moved into the fourth quarter. It had a lot to do with how we performed in 2022, which was very strong, in ‘21 also. So, there is definitely a degree to which the timing of winter showing up in January versus December impacted those results. In terms of how you think about that for major shifts to deferral, we are not talking about like a huge needle mover and it’s really I mean, literally as simple as a couple of weeks in December last year versus a couple of weeks in January of this year.
And that’s why within the prepared comments, we talked about kind of on balance as we think about the full winter season, we are sort of where we would expect to be in the setup for the remainder of the year is how we would view as kind of normal for our industry.
Simeon Gutman: Okay. Thanks for the question. Good luck.
Jeremy Fletcher: Thanks Simeon.
Operator: Thank you. Your next question is coming from Greg Melich from Evercore. Your line is live.
Greg Melich: Thanks. I would like to follow-up on sales and then maybe a bit on SG&A. Just to make clear, I have got the fourth quarter, right. It was December, I think you said pressure, was it actually negative in December? And is the first quarter running above the range for the year, given the polar vortex?
Jeremy Fletcher: Yes. So, I can answer both of those questions, Greg. The December was negative for us. It was better than our plan candidly, but we kind of knew it would be – it was substantially good last year. We don’t give discrete quantification of where we run at the beginning of the year just because there is always a challenge with short periods of time and how the weeks-to-weeks can vary just on a 1-year comp. But we do feel comfortable that we are running well. We are pleased with how we set up and we largely attribute that shrink so far to the couple of weeks of really, really harsh weather that we got in January.
Greg Melich: Got it. And then maybe a follow-up on sales, I want to make sure I get the inflation and mix part of this right. So, inflation same SKU will be around 1%. And then should we assume another 200 bps of complexity and mix within your 3% to 5% guide? Is that a fair buildup?
Jeremy Fletcher: Yes. I don’t know that I would put too finer point like that on it, Greg, for 2024. But first, I don’t know what inflation will be in 2024. Our guidance is a little bit less than 1%. We will get a benefit from the average ticket above that, even independent of professional growing faster, which naturally pulls the total company average ticket up. But we would still expect that a portion of our comp expectations for next year are driven by ticket count growth as the professional side of the business is expected to continue to be solid.
Greg Melich: Great. Well, I will let somebody ask – someone else ask when do you get the flex capacitor in stock that we see on the website.
Brad Beckham: Thank you, Greg.
Greg Melich: Have a good quarter.
Operator: Thank you. We have reached our allotted time for questions. I will 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 your unwavering dedication to our customers and the outstanding results you produced in 2023. I would like to thank everyone for joining our call today and we look forward to reporting our first quarter results in April. Thank you.
Operator: Thank you. This does conclude today’s conference call. You may disconnect your phone lines at this time, have a wonderful day. Thank you for your participation.
