Peter Keith: Hey, good morning, everyone. Congrats from me as well. It was a great year. Looking at the new store target of 1,300, I was curious how you’re thinking about annual store growth going forward. I believe the target’s been 50 stores to 55 stores per year. Is that how we should still kind of model out longer-term unit growth on an annual basis?
Eric van der Valk: Hi, Peter. It’s Eric. Yeah, we build our infrastructure to open 50 stores to 55 stores a year as well as executing on the remodel program. Just to remind everyone, in 2022, we opened 40 stores. In ’23, we committed to 45 stores, opened 45 stores, and we’re committing to 50 stores in ’24. So you can see a cadence to growing the number of stores that we’re opening. That being said, we have a disciplined approach to growth. We will not risk execution. There is a lot of disruption in the market, which is creating opportunities on the real estate side and we feel very good about the pipeline looking out into future years, ’25 and ’26. With this new real estate study in hand, we’re evaluating what would be required to accelerate growth.
Our supply chain, opening the Illinois warehouse, DC is a big leap forward in our ability to scale. The pipeline, of course, of real estate, store leadership, store support teams and we’ll get back to you in a few quarters with what that looks like for the out years.
Peter Keith: Okay. Very helpful and interesting. Secondly, I did want to ask about tariffs. You mentioned it, about 20% of products, or maybe 20% of sales are imported and I guess, what’s the philosophy, just thinking ahead, if tariffs do get implemented, do you think about diversifying away from China? Or, on the other hand, I was thinking about maybe other companies are diversifying away, and that therefore creates more closeout opportunities with Chinese factories and suppliers. So, just curious how you’re thinking about maybe the approach to China sourcing on a multi-year basis here.
Eric van der Valk: Sure. Peter, it’s Eric again. We do think about both elements of your question. We think about diversifying and de-risking around China with that 20% that is derived. We also think about the opportunities it creates, as we move into a period that may be somewhat disruptive. All that being said, our business is primarily closeout oriented, and tariffs will have an impact on everything, not everything, but percentage that comes out of China potentially across multiple categories of business. And we’re not concerned about it because of what I said in my opening remarks. From a pricing standpoint, we’re very fluid as we’re buying closeouts that may over time be impacted by increasing tariffs. We’re pricing in the marketplace, and typically what’s happened, because we’ve been through this a couple times in the past, is prices are increased across various competitors, and we price up accordingly and ensure that we can deliver margin.
So we feel good about it, we’re not losing sleep about tariffs.
John Rouleau: Yeah, Peter I said a little bit to that in a different way, but we would say that we’re a price follower, not a price setter. So as the market moves, we move accordingly, we keep that same value proposition. So whether the tariffs come in or out, or whether people move business from China to another country, we’re just following what the market’s doing. So we’re in a very good position. And also to your point, we call them stock lots, but closeouts that could be in China, if things don’t move out of there are opportunities for us to be able to buy product and bring it to the country. So we believe we’re well positioned for this and as we always say, when it comes to disruption, we do normally win at that. So that is something that could also play in our hand.
Peter Keith: Okay, very helpful, guys. Thanks so much and good luck.
Operator: And our next question comes from the line of Edward Kelly from Wells Fargo. Your question, please.
Edward Kelly: Hi, good morning, everyone. I wanted to maybe ask, promotional cadence for the year and how you’re thinking about any changes there. Like I noticed there was an earlier March flyer that I think shifted back. Obviously you have a harder — pretty hard like Q2, Q3 compare. I’m not sure if you’re thinking about anything differently there or in Holly. Just how should we think about promotional cadence? You did mention, some movement around the comp by quarter. So just maybe a little bit more color there.
John Swygert: Yeah, Ed I’ll answer it and then maybe Eric or Rob will add into it, but with regards to promotional calendar, it’s pretty much the same as last year. We are experiencing a shift from Q3 to Q4, just naturally because of the 53rd week occurring and how the weeks fall and then obviously the compressed holiday selling period from Thanksgiving to Christmas this year, but the cadence is right now planned to be pretty comparable to last year and we feel very comfortable with where we’re sitting today.
Edward Kelly: And just maybe a follow up to this question around the comparison; John, how are you thinking about the mix of the product that you think you’ll be buying? So you think about last year, right? You’re going to have this Coleman blowout, which I’m sure was very good. I don’t know if you’re anticipating, like consumable versus gen merge, right? Like how you’re looking at that? Maybe that would be helpful. And then Eric, I just wanted to ask you one quick question on the store opening cadence. It looks like Q1 might be pretty light based upon what’s on the website. So any color on Q1 openings? Thanks.
