Ernie Herrman : Lorraine, so we got it. So yes, the like-for-like pricing continues to work. We continue to see opportunity there as we move forward. And again, we do that, as we said from the very beginning, we do that very selectively in certain areas and certain categories and certain items as witnessed by our performance as well as we have another data point, which we measure qualitatively where we measure customer perception of our values. First of all, we can talk from our turns as well as our sales. But we have another perception point where consumers right now are actually seeing our value perception versus a year ago has actually ticked up a couple of launches. So we’re viewed against ourselves as value perception has improved, which tells you it’s working.
And then a second thing ironically is against the category average, we have improved. So those are good barometers. We can see it in the metrics though, Lorraine, when you look at our turns and our sales. And where, again, as we’ve also said, is where we have ever founded an item where it didn’t work, we adjust and then we bring that item back to where we think if it needs to work. But our hit rate has been 90-plus percent. So the second part of your question, again, Lorraine was on the…
Lorraine Hutchinson : Any signs of a trade down consumer?
Ernie Herrman : Trade down, which hard for us to measure trade down. What I think we would say is store closures as well as, I would say, because in some cases, it’s not a trade down or it’s a trade over based on the category. So hard for us to measure trade down. What we can feel is capturing market share from other retailers that have closed or downsized in some of their store counts. And I am sure we are getting increased market share because we can see it in some of the categories that we carry.
John Klinger : Yes. I mean there’s been a lot of volatility in the retail environment for a while. And we think we’ve got strong execution. We feel that we continue to gain that market share.
Operator: Next, you will hear from Brooke Roach.
Brooke Roach : With greater visibility to your previous long-term 10.6% FY ’25 margin target, can you help contextualize the key drivers of future profit improvement? How are you thinking about the rate and pace of that potential improvement beyond some of these freight recapture opportunities that you’ve seen this year?
John Klinger : Yes. Brooke, we’re not giving guidance long term right now. But I can say that, as always, we strive to improve all the time, whether it’s better buying or expense control, we continue to strive to do better.
Ernie Herrman : Brooke, I would just also jump in what John said earlier in his notes, is that sales have been a driver in helping us to also leverage. And so as we are capturing the sales, we do believe because we’ve tried to make our store environment sticky for the customer in terms of here, she really having a great experience there as well as the merchandise. These are the two primary components of get customers while it captures new customers and get customers back. So we believe momentum doesn’t just turn off overnight. So I think part of what we’re all feeling internally here is as we’ve captured new and increased additional visits amidst the market share gain we’re getting that, that will be also a margin driver for us as we move forward.
Operator: Our next question will come from Mark Altschwager.
Mark Altschwager : Great. So maybe just first for John. With respect to the margin guide, if we look at the high end of the guide for Q3 and Q4, it does seem to imply a nice acceleration in Q4. Now I know you’ve got the benefit from the extra week, you’re cycling the shrink accrual so those are some big factors. But I guess, beyond that, maybe what are some of the other factors that we should be mindful of there?
