Brian LaRose: Yes. The answer to your first question is no. I mean this is – I’ll start with – I’ll break it into two parts. The vet it continues to be strategic for us. But we made a decision this year to balance capital allocation, and return against what we are striving for in free cash flow. The vet business itself continues to perform not just in the hospitals, but our mobile vet clinics has been a tremendous, tremendous growth vehicle for us for the past call it, 12 to 18 months, particularly in this environment. That’s light capital, meets the customer where they want to be in this environment, and we continue, to see growth in that area. So, we think overall – vet economics continue to track. So, we’ll continue, to view this business strategically.
David Lantz: Got it. That’s helpful. And then supplies and companion animal were down high single-digits, on a normalized basis. How would you say this compares to the supplies category as a whole? And can you talk about, any share shifts you’re seeing in mass?
Brian LaRose: You mean within that category, as it compare? I mean, the category is down. I think you can look at different numbers, for the category, but the category is down. I think we’re a little bit overweight in that category. So, we’ve had a more overweight impact in terms of mix on our business. In terms of the share shifts, I will just acknowledge at the enterprise level, we have lost some share. Mike addressed that. That’s one of our top priorities, is to make sure we get that share back, without compromising our profitability.
Operator: The next question comes from Steven Zaccone with Citi. Please go ahead.
Steven Zaccone: Great. Good morning. Thanks for taking my question. Mike, good luck in the new role; and Ron, best wishes for the next step, if you’re listening. Question I had was on stabilizing our market share this year. How do you think about that? Like what are the key priorities, and the value brands that you put in the business, would you consider adding more value to the assortment, if that’s a way to win with the customer?
Mike Mohan: Hi, Steven, it’s Mike. Thanks for the question, and I appreciate your acknowledgment. I think, if I look at market share, I first would start that, we’re participating in a really large and fragmented market, and we just have low share, independent of our current share performance, the opportunity is significant. And if I was franked with my assessment, which I tried to be in my prepared remarks. We have room and improvement needed in our retail fundamentals. And if I look at those priorities around, creating an experience that’s easy to shop, having an assortment that makes sense, instilling more discipline on where we invest, and how we fund it, it gives us a ton of space, to work on share opportunities in our categories, and across our channels. So, I would answer your question that way.
Steven Zaccone: Okay. And then, Brian, a question on just thinking about the top line, because you made the comment, you’re not really expecting demand to change through the year. First quarter revenue guidance the math I’m getting to, is comps could be down like low to mid-single digits. Is that wrong? And then how do we think about, the cadence of the year, if that is the trend in the first quarter?
Brian LaRose: Thanks, Steve. Yes, that’s how the math would scratch out in terms of the implied guide. Beyond that for the year, we’re not going to comment beyond Q1. I will tell you, we made a comment that we would expect profitability trajectory, to improve throughout the year. Certainly, some of that would come with top line.
Operator: The next question comes from Anna Andreeva with Needham. Please go ahead.
Anna Andreeva: Great. Thanks so much. And good morning, guys. Thanks for taking our questions. I wanted to follow-up on the impairment charge that you took. So, should we think that, within consumables, it’s some of the more premium brands that, are no longer being carried by Petco. Just hoping to understand that a bit more. And then secondly, can you talk about the small town stores. Just remind us, how are those performing? And are you pausing expansion with that concept as well? Thanks so much.
Brian LaRose: Yes. First, on the charge, Anna, no, that would not be the correct takeaway. When we look across the charge, it’s for lower-velocity SKUs in both supplies and consumables. So, we mentioned it was consumables that will no longer be part of the assortment. Those are lower velocity. Our premium brands are great brands with high velocity in that space with great partnerships with those vendors. So, I wouldn’t say that’s the right takeaway at all. Secondly, on the small town stores, they’ve tracked to our model. Ultimately, are we still investing there? Yes, it is scaled down. But we’ve been doing that for three or four quarters now.
Operator: The next question comes from Seth Basham with Wedbush Securities. Please go ahead.
Seth Basham: Thanks a lot. And good morning. My first question, Mike, is just in terms of your marketing strategy going forward. It seems like you think there’s a, disconnect between what Petco offers and what customers think you offer, how are you going to change that going forward?
Mike Mohan: Yes. Thanks for the question. I would just draw back to the rapid introduction or reintroduction of value brands to our assortment, which was incredible by the work that the team did, but you have to bring it all the way through and make sure customers understand that we have the most complete offering of products and services for pets and pet parents. And we need to spend time attracting high-quality customers at the top of the funnel, which to be fair, we’re just starting to do. So if I look at the changes we’ve made, it takes time for customers to resonate with what the brand stands for. And we want to be the destination for pet parents to think about every single thing they need for their pet. And so we need to spend some time and investment there.
