Michael Hartshorn: Let me talk a little bit about the long-term operating model. We certainly, with ocean freights coming down, we’d expect to see a big benefit this year. Longer term, the margin improvements will be highly dependent on sustained strong sales growth, but also, as we mentioned, to a large extent, the persistence and the inflationary costs in the business. We, again, expect to see ocean freight costs preceding this year, but they still remain above pre-pandemic levels and a number of transportation lanes. So that could be a benefit beyond 2023. We also expect to see lower domestic freight rates this year, and that’s embedded in our guidance. But we see these pressures easing over a longer horizon and is somewhat dependent on fuel costs.
Wage costs have risen, but are growing at a slower pace than they did during the pandemic. We expect from a wage perspective that it will be an ongoing pressure, but we are finding ways to be more efficient in the business that’s offsetting some of those costs. So all of those taken together, we believe we can grow our EBIT margins and profitability over time, but it will be very important to drive top line sales growth in that equation.
Operator: And the next question comes from the line of Mark Altschwager with Baird. Please proceed with your question.
Mark Altschwager: Great. Thanks for taking my question. In terms of the competitive backdrop, some of the bigger general merchandise retailers look leaner on inventory, especially apparel and discretionary categories heading into the spring. Just curious how that’s incorporating into your thinking on comps and potential for some recapture of market share cycling last year? Thank you.
Barbara Rentler: Sure. I think – then pulling back on general merchandise potentially gives sense – gives us an opportunity to grow those businesses since they are such a big part of our business. But I really think regaining, capturing market share, however we want to say that, it really depends on driving sales, and we think that the best way to drive sales is for us to continue to focus on value for our customer. I mean that’s really what helped us perform in the fourth quarter is really making sure that we’re delivering the best branded bargains possible throughout the entire store. And that really is our focus. That compounded with the fact that there’s a lot of merchandise in the marketplace, which will enable us to do that.
I think that’s really what will help us gain back that market share, whether it’s coming from a big box or it’s coming from other parts of retail, department stores, whatever it is. I think that’s really the key for our success go-forward to drive top line sales.
Operator: Thank you. And as a reminder, please limit yourself to one question. Thank you. Our next question comes from the line of Paul Lejuez with Citigroup. Please proceed with your question.
Paul Lejuez: Hey. Thanks, guys. Are you seeing any signs of a trade-down customers showing up in your stores? I know you said, transactions traffic was flat, but curious if the customer base is changing at all, or maybe you’re seeing some higher income folks show up, maybe some of the lower income folks shop less. I’m also curious how you’re thinking about the drivers of comp in F 2023 from a traffic versus ticket perspective? Thanks.
