If you look at the balance sheet, you’ll see us clean up an inventory picture exiting the quarter as we started with, with inventories down 17% in total, down 25% in the discretionary categories. So, we feel well managed on the inventory front, and that’s showing up with markdowns playing out as expected.
Christina Hennington: Yes, Michael, I wouldn’t have a lot to add. We’re pleased with the team’s agility, and we believe that the environment is rational, and we’re continuing to build back our profit in light of the circumstances.
Kate McShane: Thank you. And a follow-up question comes on Rupesh [ph], I think of the first question that was asked, but wanted to get a little bit more detail about any changes in consumer behavior within the discretionary categories, especially as traffic got better into July? And just how you’re thinking of the discretionary categories in the back half of the year?
Brian Cornell: Yes. Kate, I think we’ve continued to see the same trends over really the last year now. Well, I think we see a very resilient U.S. consumer, and I think so much of that is fueled by the strength in the labor market. We continue to see a consumer who is facing high inflationary pressure in Food & Beverage and Essential categories, that’s absorbing a bigger portion of their wallet. I think as they think about discretionary spending, we’ve seen a rotation in their wallet from goods into services. You’re seeing the uptick in travel and leisure, what’s happening in entertainment. So those trends, we expect to continue into the back half of the year. We’ll watch it carefully. I think our inventory position allows us the ability to chase into demand and we’ll be ready when we see demand changing as we enter the holiday season. But I think the consumer is still taking a very cautious approach to discretionary spending in the goods sector.
Kate McShane: Thank you.
Operator: Thank you. Our next question is from Oliver Chen with TD Cowen. You may go ahead.
Oliver Chen: Everybody thanks. Regarding traffic, what’s your forecast for traffic that’s embedded in guidance? Do you expect it to continue to be in the negative low or negative mid-single-digit range? Also, as we dive a little deeper into the discretionary product assortment, what do you see as opportunities in apparel? And how are you thinking about your overall private label assortment in terms of rebalancing and/or the portfolio relative to non-private label?
Brian Cornell: Christina, do you want to talk about some of the plans we have in place for the back half of the year, some of the newness we have in our assortment and some of the exciting new changes we’re going to make from an own brand standpoint?
Christina Hennington: Yes, I’d be happy to. So Oliver, thanks for the question. On the discretionary portfolio, we continue to build our assortment strategy for the long term. We fully believe in our multi-category portfolio that it offers us an ability to meet the guest needs in a variety of different times. At the moment, given where the consumer is spending, we’re, of course, leading on the strength of our Food & Beverage portfolio and Essentials & Beauty. With Beauty really being a highlight with double-digit growth both in Ulta Beauty at Target as well as our core business. Within discretionary, what we’re seeing is that there are things that are very much working around newness and innovation. And as you pointed out, our own brand portfolio plays a huge role in delivering against those goals.
