Brian LaRose: Yeah. Let me start, Simeon and then I’ll turn it over to Ron to talk about 2024. So as I said earlier, our initial guide assumes some stabilization in that discretionary category. If you look at Q2, we declined 9%. If you look at Q1, we were down 8%. Obviously, our expectations in Q2 weren’t in line with what we previously assumed. While I won’t get into a specific number, I think if you look at the minus 9% in Q2 we have not assumed much recovery from that for the balance of the year. And I’ll turn it over to Ron to talk about ’24.
Ron Coughlin: Yeah. Hi, Simeon. The current projections for the overall category for ’24 are mid-single digit with a stabilization of supplies. When in ’24 that happens, we will see, but we’re not waiting. We’re going to take actions. We’re taking actions on our Supplies Perks, which actually — enrollments were up 11% versus when we ran that before. We’re taking action on costs. We have favorable cost progress on our supplies. We have favorable freight, which allows us to have more flexibility in terms of providing value to customers. So we’re taking actions. Category call for ’24 at this point is mid-single digits with a stabilization in supplies.
Simeon Gutman: Thanks. If I can ask one follow-up, I don’t know if I can. On the promotionality of the industry, it seems like it’s ticking up. I’m curious how you describe it. And as you plan second half, is that — I guess, I don’t know, pricing actions is discounting or promotions or it’s price optimization?
Ron Coughlin: Yeah. Good question. Supply and demand have rebalanced versus a year ago. So the industry is returning to pre-pandemic promotional levels. There’s a consumer who’s looking for more value, and we’re making sure that we provide it and the promotions that we run are traffic positive, revenue driving and for the most part, profit dollar neutral. So it is an effective tool in generating customers. We’ve seen positive reactions to them, but it’s really a return to pre-pandemic promotional levels based upon supply now being more in balance with demand.
Simeon Gutman: Okay. Thanks guys. Good luck.
Ron Coughlin: Thanks, Simeon.
Operator: Our next question comes from Anna Andreeva from Needham & Company. Please go ahead with your question.
Anna Andreeva: Great. Thanks so much. Good morning, guys. I wanted to follow up on the sales cadence that you saw during the quarter. I think you had said previously that May was more in line with 1Q. So that’s mid-single digits. So should we think both June and July slowed? And what are you seeing in the business so far in August? And then I had a follow-up as well.
Ron Coughlin: Hi, Anna. thanks for the question. In terms of linearity, we had non-comp noise with events shifting from month-to-month versus a year ago. What I can say is we weren’t happy with supplies in May, June or July, which is driving our guidance change. Services remains strong across all three months and food showed solid growth across the quarter. In terms of August, we haven’t seen a significant change in our trend line, but we’re taking action, and we’re seeing some initial green shoots on some of those actions.
Anna Andreeva: Okay. Great. That’s helpful. And just as a follow-up on gross margins. Did that come in line with your expectations for the quarter? And just any color that you could share on the puts and takes on the gross margin line as implied by the annual guide. I think, Ron, you had mentioned some of the benefits from the cost actions on gross margin are starting to trickle in this year as well?
