But it is just as promotional as it’s been historically. And so that’s kind of the headset the merchants have as they are out there now making purchases in the outside world. And then of course, the logic of every value is dependent upon the brand and how that fits in the outside world.
Laura Champine: Got it.
Michael Hartshorn: Thank you.
Operator: And the next question comes from the line of Marni Shapiro with Retail Tracker. Please proceed with your question.
Marni Shapiro: Hi guys. Congratulations on a great quarter, and best of luck for holiday. If you could just €“ I know you are not giving guidance yet for €˜23, but is it fair to assume that store openings will be about the same for next year, or is there any change your thinking on dd’s given the environment? And then I think, Barbara, I just wanted to chase a little bit more into on the improved mix you said for the holiday season. Clearly, there is a lot of product out there. But were you referring to improved mix versus €˜21 versus the first half versus the third quarter or just in general, there is so much inventory and we are having a good time?
Michael Hartshorn: Marni, on the real estate front, we remain very confident in both chains and currently have no changes to our expansion plans. Certainly, we will provide more details for €˜23 when we report year-end.
Marni Shapiro: Okay.
Barbara Rentler: Okay. And in terms of the mix, Marni, I would say going back to the €“ going back to Q4, we missed a lot of gifting opportunity last year because of the whole wide chain carrier issue. So, specifically to Q4, that’s one piece of it. In terms of the entire year, there is just a lot more brands out there. So, I think it is a combination of both being able to get really great closeouts and better pricing and better brands. And the other piece of where there just where holes, literally holes in our assortment. So, it’s both.
Marni Shapiro: That’s great. Best of luck for holiday, guys.
Michael Hartshorn: Thank you, Marni.
Operator: And our next question comes from the line of John Kernan with Cowen. Please proceed with your question.
John Kernan: Great. Thanks for taking my question. Congrats on the momentum into holiday. So, Michael, if we look at your sales productivity just simply through sales per square foot, sales per store, it’s above pre-COVID levels. The operating margin obviously is below, but it seems like there is momentum into the fourth quarter and next year, and you might have line of sight in terms of how to get back to pre-COVID levels of operating margin. What do you think is €“ where do you have the clearest line of sight in terms of €“ is it freight? Is it merchandise margin? Is it SG&A leverage? What do you think creates the clearest path back to pre-COVID levels of profitability?
Michael Hartshorn: Well, sales, number one. There are structural changes in wages across the U.S., but I don’t think you are going to get that back to the labor that you had pre-COVID. Certainly, ocean freight is going to be a tailwind for us going into 2023. I would say domestic freight should be a tailwind as well, but that will be partly dependent on diesel fuel prices that are above $5 now. And so it will be partly dependent on what happens with fuel. But most importantly, it will depend on top line sales.
John Kernan: Got it. Thank you.
