“And then on the operating model, the store and labor, that will always leverage with growth.”

In context

“, will you see some of those items come back next year such that if we have in our models a positive comp, we wouldn’t necessarily expect you to leverage your expenses on the first dollar growth next year? Richard McPhail: Well, we will get into a bit more detail on outlook in 2024 when we get together in June for the investor conference. We are not modeling 2024 at that level of specificity as we are only a few months into 2023. But broadly, Michael, our model is meant to leverage and will leverage with volume. And we have some costs to take out of the business. For sure, if you think on the product side, with transportation in particular, you will see significant costs come out as we work through our current inventory levels with the higher transportation rates experienced during COVID. And then on the operating model, the store and labor, that will always leverage with growth. Ted Decker: And obviously, we manage cost and price independently, Michael, and transportation costs are a market dynamic. And so we will make sure that we are positioned as the customer’s advocate for value with respect to price. But as Ted said, we will get more into this in 2023 – sorry, in June, June 13th. Michael Lasser: Richard, Can I just clarify what that comment is intended to stay, because one of the debates is costs have come down, whether transportation costs certain raw materials, so there is a question of whether that means there is going to be like-for-like product deflation in non-commodity related areas over the course of this year. And it sounds like Home Depot is going to continue to be an advocate for growth, but how would you clarify that, or advocate for value, sorry”