Mark Altschwager: Great. Thank you. Best of luck over holiday.
Operator: And our next question comes from the line of Lorraine Hutchinson with Bank of America. Please proceed with your question.
Lorraine Hutchinson: Thank you. Good afternoon. I was just hoping you could square a couple of comments for us. You talked about resetting values and really focusing on the sharp price points, and your AUR was up. So can you talk about the drivers of AUR in the quarter and then your views on the pricing strategy on a go-forward basis?
Barbara Rentler: Sure. So Lorraine, value and price are two different things. So the merchants are out constantly assessing what’s going on from pricing and competitive shopping and seeing what that is. So in some places, where we felt that our AUR was just too high, we went in and took markdowns. But in other places, based off of assortments and opportunities that we’ve got in the marketplace, the AUR might be higher, but the value is different. And then the last component would be some of the shift in the mix of some of the businesses themselves. So for example, our shoe business has been strong. And shoes, obviously, runs a much higher AUR. So there is a variety of things. But what I would say in total is that, with back to being such a highly promotional environment that we’re in, the merchants will be in the market really assessing where the values are moving and what that looks like and trying to stay ahead of that.
So with €“ again, back to the AUR question, that could depend on mix, and that can depend on brand. So there is a variety of issues involved there.
Lorraine Hutchinson: Thank you.
Operator: And our next question comes from the line of Chuck Grom with Gordon Haskett. Please proceed with your question.
Chuck Grom: Hey, thanks. Good afternoon. Congrats on a great quarter. You called out Florida and Texas as being strong regions, but you didn’t call out California, which is a little bit surprising given the checks that were sent out in the month of October. So I just wonder if you could just give us a little bit more color on geographic performance in the quarter?
Adam Orvos: Yes. This is Adam, Chuck. Yes, Florida and Texas clearly outperformed for us. We’re seeing the benefit in border locations. We’re seeing the benefit in tourism locations, and those were clearly the outperformers. On the flipside, California underperformed in the quarter.
Michael Hartshorn: And on California, the checks didn’t come out to the end of the quarter, so it didn’t have a material impact on Q3. In California, fuel prices have remain significantly more elevated than the rest of the country. That is, we believe, squeezing the lower- to moderate-income customer.
Chuck Grom: Okay, thank you very much.
Operator: And our next question comes from the line of Paul Lejuez with Citigroup. Please proceed with your question.
Paul Lejuez: Hey, guys. Curious on what’s going on from a shrink perspective. We’ve had a couple of companies call out, I think, a drag from shrink. I think you guys usually do a physical count in 3Q. So curious what you’re seeing on that front. And then also just on inventory. Typically, third quarter inventory is a few hundred million bucks above 2Q. Now that’s a few hundred million below. So I’m just kind of curious about what your thinking is in terms of quantity and quality and how you’re thinking about inventory levels relative to sales going forward? Thanks.
