Jeff White: Yeah, I think the big driver on the margin degradation there is just the supply being fully back in stock. We saw a little bump in ammo during October with some of the demand-driven events, but that was really focused on very specific types of ammunition. Holistically, across the ammo category, we are in a well in-stock position. The manufacturers are pumping it out, and the industry is very well in-stock. So, we’re seeing the pressures from that across the board.
Mark Smith: Okay. And then, Jeff, I think you said — I think you quantified kind of an inventory goal at the end of the year at $375 million. Correct me if I’m wrong. And then, talk about kind of your comfort level of getting there?
Jeff White: Yeah, you’re correct, Mark. It was $375 million. It was somewhere below $375 million if we get specific. I am very comfortable with us hitting that target and achieving that target. There is nothing more important as we think about our year-end strategy than moving through inventory, getting it into a healthy position and getting productivity out of that inventory as we move into 2024. So, as we sit here today, I’m very confident in hitting that target.
Mark Smith: Okay. And the last one for me. Just as we think about cost cutting, SG&A, you guys have done a good job thus far. Maybe just talk about where you’re at in this total program? Are we kind of middle innings, or are we still early? Or if you worked through a lot of this cost cutting so far?
Paul Stone: Hey, Mark. It’s Paul. I’ll take that. As we kind of made this assessment and the work has been done early on as far as efficiency and productivity gains that I think will continue, I mean, to push to simplify the business. And I think as we continue to simplify the business both for the employees, whether they be in the stores, distribution centers here at corporate, that we have an opportunity clearly to continue the momentum that we have from an SG&A. But I think our message is really around simplification of the business. So, we’re going to continue to work at that. So, I would just kind of sum it up by saying we’re not — we think we have a lot of room to go here. And the fact of the matter is that we just want to simplify the business both for the employee and the customer.
Mark Smith: Okay. Thank you.
Operator: Thank you. Our next question is from Mark Herrmann with R5 Capital. Please proceed with your question.
Mark Herrmann: Hey, guys. Thanks for taking my question. Just to dig a little deeper on the promo situation in Q4, and kind of looking back at what happened already, would you say that the activity that you’ve had has been more successful at actually driving new traffic or more at driving attachments for firearms customers who are already coming in store, if you can break that down?
Paul Stone: Yeah. Hey Mark, it’s Paul. I think as we look at it, it’s kind of a mixture of both, but we don’t look at it and say exclusively that it was driving traffic to the store, but I think that the opportunity we had is once we had them in the store with the attractive discounts that was there, that it was able to help on attachment. But I wouldn’t lean if I had to lean more one way, it would be helping us overall from attachments and what it looks like for the items in the basket versus the traffic to the store.
Mark Herrmann: Okay, great. Thanks. And then, kind of looking forward, is there any — can you break down the thought process into, is it geared more towards private label or branded for 4Q? Is it more higher-end versus lower-end goods? And is it limited to apparel and footwear? Are you going to go outside of those areas for the promos?
Paul Stone: Yeah, I think it’s — when the team lined this up and really started at the beginning of Q3 into Q2 and they started this process of cleaning up, it just wasn’t only apparel and footwear. I mean, there was a lot of work done behind the scenes around a lot of different departments from a cleanup, and they moved a lot, lot more. But as we get down to the end here, we have — that’s primarily what we have left and the reason for going deeper to be able to clean up in Q4 and get us to the position we need to be to start the fiscal year clean. I think Jeff said earlier, this is an opportunity. We’ve seen some small wins out there with subcategories where we’ve had really good work from SKU optimization, being able to pull back SKUs, condense where we’re at and get more productivity from less SKUs, and we really like what that looks like.
But I think as we look at this, in most cases, we’re looking at it and saying it’s mostly — it’s not private label that we be looking at it, it’s more name-driven as we think about it.
