Joe Schneider: Yes, the other promotions will be more focused on the national brands. Our private label brands were able to manage very closely and make sure that we’re still hitting the sell through and margin targets on those. So, you’ll see the promotional activities more centered towards the national brand.
Mark Smith: Great. Thank you.
Operator: Our next question is from Justin Kleber with Robert W. Baird. Please proceed.
Justin Kleber: Yes, good afternoon everyone. Thanks for taking the question. So first, just a clarification on the store traffic comment, did store traffic get worse on a same store basis relative to 1Q or did it just not improve as you had anticipated.
Joe Schneider: Great question, Justin. It did not improve as we anticipated. So traffic stays very flat to what we saw in terms of trends in Q1. And we just did not see the increase that we were expecting in Q2 to see.
Justin Kleber: Got it. Okay. And Jeff, on the 25 million in annualized cost savings that you cited. How much of that do you anticipate, realizing this year and can you talk about the buckets, the bigger buckets where you’re sourcing these savings from?
Jeff White: Yes, the biggest bucket that we have in there Justin is going to be in the labor pool. So that’s going to be an immediate savings that you recognize as you reduce your labor pool. And so we will start to see that flow through in the back half. In terms of other expense cuts, we’re looking at contracts, we’re looking at any discretionary spend. Those types of things are going to take a little longer to make sure that they come to fruition as we exit contracts or re-evaluate contracts and do those renegotiations. But I would say to bring that up, the biggest portion of the expense cuts are going to be in the labor pool.
Justin Kleber: Okay. And then Jeff, you mentioned the payroll I think per store was down 11%. How much room do you have for the cut before you reach, what I assume is some level of minimum staffing and stores?
Joe Schneider: Yes, this is Joe and one thing we don’t want to do and we’re very driven is we’ve got to continue to delight the customer and that customer experience and have an emotional attachment with Sportsman’s Warehouse. So it’s a little bit fluid on how much more we can do. We believe what we have done has taken the correct evaction where the difference between a need and a want. But again, the part that we do not want to cut is where we’re disappointing our customer.
Justin Kleber: Yes, kind of makes sense. Last question for me guys, just on CapEx. You’ve spent 52 million year-to-date. I think the original guidance is 48 million to 56 million if I go back to the fourth quarter. So you’re ready within that range. I guess, is that still the right range for CapEx. It’s really going to slow that materially over the back half of the year. Or should we be thinking about a higher number relative to that initial plan? Thank you.
Jeff White: Yes, Justin great question, one little nuance on that, that’s on the cash flow in that section that’s showing 52. We have landlord payments that we received for TI dollars that actually show up in operations. So the guidance that we’re giving is on a net basis, net of those landlord allowances. So the guidance that we gave in the in our CapEx guidance would take that into consideration, that’s going to be the difference that you have. So I am still comfortable with the range that we’ve given.
Justin Kleber: Got it. Thanks for that clarification, Jeff. Best of luck in the next quarter.
Jeff White: Thanks.
Operator: And we now have a follow-up question from Eric Wold with the B. Riley Securities. Please proceed.
