Adam Orvos: And I think you also asked about markdowns, we didn’t answer that question. So given the elevated levels for last fall should expect some benefit as we move through the second half. Obviously, assuming we deliver our sales expectations.
Matthew Boss: Great color. Congrats again.
Adam Orvos: Thanks.
Operator: And the next question comes from the line of Lorraine Hutchinson with Bank of America. Please proceed with your question.
Lorraine Hutchinson: Thank you. Good afternoon. I wanted to focus on SG&A for a minute. Understanding this year there is a rebuild of incentive comp, how you’re thinking about that line item over the longer-term, and what comps would you expect to need to leverage SG&A in the out years?
Adam Orvos: Yes, hi, Lorraine. This is Adam. So SG&A we knew we’d be pressured due to incentive costs coming into this year and it clearly was, but most of our SG&A deleverage in the second quarter was driven by incentive costs, although higher store wages played a part in that. Also, I think your kind of longer-term leverage question, a 4% comp is where we think we can clearly lever in SG&A, and that fundamentally hasn’t changed for us.
Lorraine Hutchinson: Thank you. And then, any change to your outlook on wage pressures, either for this year or for the coming years?
Michael Hartshorn: Sure, Lorraine. Generally speaking, wages in our stores and DCs are relatively stable, so there was no change to the outlook for 2023. We continue to take a market-by-market approach to staffing and we do adjust wages were appropriate in individual markets. Say longer-term, I think it’s going to be dependent on the statutory environment. That’s really what’s driven our wage growth over the last few years.
Lorraine Hutchinson: Thank you.
Operator: [Operator Instructions] Thank you. And the next question comes from the line of Mark Altschwager with Baird. Please proceed with your question.
Mark Altschwager: Thank you. Good afternoon, great quarter. Back to the top-line for a moment. Just with the positive inflection you’re seeing in comps, what’s your level of confidence that the business can return to 3%, 3% plus next year? And then bigger picture, do you think you hit the point where the value is resonating in a way that it can trump the inflationary pressure your consumers are feeling elsewhere? I guess you asked another way. Tough times is when we would think more customers would need Ross and the trade-down can drive the top-line. Do you think that’s where we are today? Thank you.
Adam Orvos: Here’s how I’d answer that. Generally speaking, we can control what we can control. We know that we made some progress improving our assortments during the second quarter. We also know there’s we can make significantly more improvements. And with that, I think that gives us confidence or that we can continue to grow comp longer-term, when we start talking about next year, I think we’ll be in a better position to see what the outlook is when we give our earnings guidance early next year. So we’ll continue to monitor the economy remains very uncertain and we’ll do what we can to offer the customer the best possible value possible in this environment, which is very important to our customers.
Barbara Rentler: I think the other piece, Mark, is that if we continue to improve on our value offerings, we really think that that’s the way to gain share across all customer income demographics. So if we do a good-better-best strategy and we have incredible values, we have more of an opportunity to gain more customers.
Mark Altschwager: Thank you. I’m in the queue. Just take the next question. Yes, yes, take the next question.
Operator: And our next question comes from the line of Chuck Grom with Gordon Haskett. Please proceed with your question.
