So, we — of course, we benefited here over the last couple of years from double-digit sales growth, driving a lot of fixed cost leverage across the business. There’s also been a more rational promotional environment the last couple of years. And these elevated sales levels have also mitigated some of the other inflationary cost pressures that we are experiencing across the business. So, as we look to 2023, we expect sales growth to moderate from where it’s been the last couple of years. And so, that will — that’s going to drive some deleverage. That’s our year-over-year tougher comparisons. We’ve described that. I mean, as we think about, again, stronger and sustainable operating margins, we just feel like the business is in a much healthier position today than it was back in 2019.
Again, we’ve described improved capabilities across the business, like ship from store and BOPIS helping to do that. Our ESG initiative that we started years ago now are continuing to drive significant benefits to the business overall. And we believe that, coupled with some of the new initiatives that we have along the lines of continuous improvement and some of the other long-term strategic investments we’re making for the business, help give us comfort that we can hold on to those stronger margins with a 3% to 5% comp over the next few years.
Operator: Our next question is from Kelly Crago with Citi.
Kelly Crago: I was wondering if you could talk a little bit about category growth and break down how you’re looking at growth by category in F ’23. And then just talk about some of the opportunities you have in skin. I think at 17% of sales, you indexed lower than the beauty category overall. So, just curious if you have any initiatives in place to expand. I think you talked about maybe eyeing some square footage in stores dedicated to skin care. So, anything else from like a brand perspective? Any partnerships there? Would be helpful.
Dave Kimbell: Great. Yes. Of course, our assortment is key to our success. One of the things that’s really encouraging to us and again, gives us confidence moving forward is our performance has been broad-based. We’re seeing double-digit growth across all major categories. And as we look forward into 2023, we see good healthy momentum in each of the categories. So, we feel confident. And fundamentally, it’s driven by overarching beauty trend and understanding of the power and importance of beauty and how it connects to overall wellness and self-care. That elevated connection, the increased emotional connection, and the importance that beauty plays is fueling the entire category. And that’s what’s helping drive each element in each individual subcategory within the total beauty space.
So, we feel clearly good about what 2022 looked like and have good optimism going forward. A lot of newness, a lot of activity across each of our major categories. We’ve got newness in makeup and in hair care and fragrance. We’ll continue to drive innovation in things we’re excited about. Skin care, as we mentioned in the script, was our fastest-growing category. We had double-digit growth in each category, but skin care led the way. And we feel like there’s even more opportunity. We’ve launched new products like Drunk Elephant. We’ve had great growth with The Ordinary, Hero Cosmetics. We have in our newest store design that we started rolling out last year. We brought skin care together, and our other categories, makeup with skin care, and a more prominent front-of-store location that allows our guests to engage across all price points in a really elevated, beautiful way.
We’re bringing new brands in. We just launched a partnership, an exclusive partnership with Beautycounter, which spans both color and skin care but has a very strong skin care presence. So, we’ll bring innovation across all parts of the business, and we see strong trends, most of which are rooted in wellness and overall health and self-care, which we think will drive each of the categories in a positive way going into 2023.
Operator: Our next question is from Simeon Gutman with Morgan Stanley.
