Barbara Rentler: Okay.
Operator: And the next question comes from the line of Aneesha Sherman with Bernstein. Please proceed with your question.
Aneesha Sherman: Thank you. So similar to last quarter, your new guidance also models a comp acceleration on a four-year stack. Can you talk about what makes you confident about that acceleration going into the second half? Is it more about external factors like inflation moderating or is it about internal execution and bringing a better product to the market? And then second, some other discount retailers have talked this week about absorbing inflation and doing price rollbacks for back-to-school, do you expect fall in back-to-school to become quite promotional across the sector? Thank you.
Michael Hartshorn: On the guidance, Aneesha, it’s a function of how we performed in the second quarter and our confidence in the assortments we’re providing to the customer. I’d say that’s what’s driving our guidance in the third quarter. In the fourth quarter, we actually see a deceleration, and we’ll update that as we get closer. We think the fourth quarter could be a very promotional holiday season.
Operator: And the next question comes from the line of Corey Tarlowe with Jefferies. Please proceed with your question.
Corey Tarlowe: Great, thanks. You talked about cosmetics and accessories and a little bit on home. I was wondering if you could also touch on footwear and apparel, anything you’re seeing there, how did that perform relative to the chain average. And then just on real estate, what’s the availability look like? And is there any impact that you’re seeing as you look down your real estate pipeline in terms of the impact from potentially higher rates on higher interest rates on either rental agreements or returns that you’re seeing?
Michael Hartshorn: Sure. Merchant-wise, let me talk about the category performance. merchandise-wise, cosmetics and accessories, as we mentioned, we’re again the best performing businesses. Shoes and Home were above the chain average. Apparel trailed the chain, although it performed above our plan and improved versus Q1. On real estate availability, I’d say, overall, there’s been an increased interest from other retailers and the types of real estate that we typically prefer. That said, our team has a very methodical process of developing a healthy real estate pipeline to support our long-term growth plans. And in terms of rent, obviously, we’re under contract and have option renewals, and we’re not seeing, at this point, major increases in our rent costs.
Operator: And the next question comes from the line of John Kernan with TD Cowen. Please proceed with your question.
Krista Zuber: Good afternoon. This is Krista Zuber on behalf of John. Just given still broadly highly promotional environment across retail heading into the second half and your sharper value proposition. I wonder if you could just talk to rather broadly or directionally, how you see sort of your merchandise margin relation to your Q3 operating margin guidance? Thank you.
Adam Orvos: Hey, Krista. Merchandise margin will continue to be primarily driven by ocean freight benefit. I mentioned earlier, we will have a little bit of a tailwind just from us as we had elevated markdown levels that will be help to us and really that’s all we see as major moving components within merchandise margin.
Operator: We have time for one final question coming from the line of Jay Sole with UBS. Please proceed with your question.
Jay Sole: Great, thank you for taking my question. I guess if you just take a step-back and just give us an idea of how the overall inventory buying environment compares right now to a year-ago because if we go back a year-ago, it was really a time where a lot of retailers and just the whole industry realized how much excess inventory had been built-up post reopening and taking just sort of a slowdown in inflation really starting to kick-in. So could you just give us an idea of how you think about the environment now relative to them? Is it as good, is it better, or is it a little bit worse than a lot worse, any kind of context there would be helpful? Thank you.