Michael Hartshorn: Well, on physical inventory, we did take a physical inventory during the third quarter, and it was slightly higher than last year. And then on inventory levels in Q2, we were €“ we believe we had too much inventory, which is why it’s down versus the second quarter.
Paul Lejuez: And then go forward, Michael?
Michael Hartshorn: I wouldn’t comment on the €“ on year-end, but it’s going to be dependent on packaway opportunities in the marketplace.
Paul Lejuez: Great. Thanks. Good luck.
Operator: And our next question comes from the line of Brooke Roach with Goldman Sachs. Please proceed with your question.
Brooke Roach: Good afternoon. And thank so much for taking our question. Barbara, I was wondering if you could contemplate and reflect on €“ based on the availability of branded goods in the market today, can you talk to the outlook that you see for merch margins for the next few quarters? How are you thinking about taking that mark on and passing that along through the P&L versus passing that value on to the consumer and competing for additional comp opportunity over the next few quarters? Thank you.
Barbara Rentler: Sure. As you know, there is a lot of availability in the market, and it’s really broad-based and all categories or brands. It’s really broad. In terms of margin, I think the way we think about it now is the customer, our customer, especially the moderate to low-income customer is really focused on value. So we will look at every brand based off of how that brand sits in the world and the competitive nature of the pricing of that brand, and then we will value it appropriately. Because that’s really what the customer told us when we went in and we rightsized some of our values that we weren’t as competitive as we would have been historically. So I would look at it more from the opportunity of getting great brands on the floor, putting better values, better values out there to make €“ to please the customer and then, ultimately, to drive sales.
Brooke Roach: Great. And then just one quick follow-up, I think in the prepared remarks you mentioned a sequential improvement at dd’s. Can you talk to the drivers of that and any change that you’re seeing in the behavior of your low-income customer versus maybe more of a middle- to high-income customer within your portfolio?
Michael Hartshorn: Sure. On dd’s, the improvement from Q2 to Q3 was similar to Ross, although it continued to trail. As a reminder, the dd’s customer’s average household income is $40,000 to $45,000 versus $60,000 to $65,000 for Ross. So very similar improvement between Q2 and Q3.
Operator: Thank you. Our next question comes from the line of Michael Binetti with Credit Suisse. Please proceed with your question.
Michael Binetti: Hi, guys. Thanks for the question. Congrats on a great quarter. You’re typically really conservative when it comes to forward guidance. And others today and yesterday have spoken to a softer start to fourth quarter. Michael, I know you won’t speak specifically about intra-quarter, but you mentioned maybe that fuel is going to neutralize some of the benefit in your biggest market, a few of your macro thoughts there. But what gives you the confidence to raise in the fourth quarter, knowing what we know about the industry here, a little different than how you approach a couple of the most recent quarters? And then, I guess, Michael, you’ve also saw a contest in the past about what your view is of a normal algorithm for this business, what flow-through looks like on your normal sales target. Any initial thoughts on how flow-through could look next year, if we’re lucky enough to be back to a conducive market for a normal comp?
