Michael Lasser: Understood. My follow-up question is Home Depot’s operating expenses this year are being impacted by the $1 billion wage investment. But SG&A growth over the last few years has been anything but normal. So the key debate here is, has the company entered a period where the cost of doing business has just gone up such that even if the cycle recovers in 2024, the company won’t see a significant improvement in its profitability because so much will need to be reinvested back in operating expenses based on what’s happening right now?
Ted Decker: Well, I wouldn’t paint that picture, Michael. Clearly, too early to talk about 2024. But we made a significant investment in wage, as Ann said, and we’re in a much more comfortable position on a national minimum level and where we are in competitive markets. So again, as Ann mentioned, we couldn’t feel better about the returns on that investment. We don’t expect that we’re going to need to make that outsize of an investment in the near-term planning horizon. Wage rates are still up, but we’re seeing those come down. Annual increases that we track month-to-month, as I’m sure you do, are moderating. So we don’t see another big wage investment. And then this business, as it always does, will leverage with volume in those dynamics of this P&L leveraging with modest comps. That investment thesis remains intact.
Richard McPhail: It might just do to remind, as we laid out in the investor conference, in a market-normalized case with 3% to 4% top line growth, in a normalized case, we expect margin expansion based on operating expense leverage that would lead to mid to high single-digit EPS growth. So nothing’s really structurally changed that much, but it is worth just pointing back to our comments in June.
Michael Lasser: Understood. Thank you so much. And good luck.
Operator: Our next question comes from the line of Zach Fadem with Wells Fargo. Please proceed with your question.
Zach Fadem: Hey, good morning. Can you help us unpack the cadence of DIY versus Pro from Q1 to Q2 as last quarter saw DIY outperform Pro for, I think, the first time in 2 years? And with that reversing out in Q2, curious how you think about the moving parts between the 2, and if we should expect the spread to widen or contract going forward.
Ted Decker: Zach, I wouldn’t read too much into that. There was so much noise in Q1 that I’d just say that was an outlier. And the theme of the Pro responding to the investments we’re making in outperforming the consumer that we just saw in Q2 is consistent with what we’ve seen. But for an outlier, very noisy Q1.
Zach Fadem: Got it. And Richard, you had talked about the $500 million in cost savings next year coming out of the base. But I believe there’s also about 10 to 20 bps of productivity benefit this year. And I’m hoping you could speak to, first of all, the differences between the two and the buckets of savings and then whether that 10 to 20 bps for this year is in the base today or if it builds through the year.
Richard McPhail: Sure. Zack, thanks. Yes, that 10 to 20 is something we called out at the very beginning of the year when we – or – and actually Q – when we talked about the progression of margin. And so – or rather the range of operating margin outcomes. That – you can think of that as really productivity that we anticipate in ordinary course. It certainly offset expenses such as the wage investment, but it was part of our original guidance and consistent with revised guidance in Q1 and consistent with guidance today. The $500 million cost-out that we anticipate for 2024 is separate. And it really reflects our – the rationalization in most part of a cost structure that we had to build up as we saw product volume skyrocket in 2020 and 2021.
