“Now some of the important goods, obviously, tariff rates are significantly higher today than they were when we spoke in May. So as you'd expect, there'll be some modest price movement in some categories, but it won't be broad-based.”

In context

“then maybe just for the second half of the year, you help us think a bit more about AUR and pricing. How did that perform in the quarter? It sounds like promotional activity was down a bit. But just as you think about the second half of the year, the complexion of ticket and transaction, how does pricing fit into that equation? Billy Bastek: Yes. Thanks, Steven. This is Billy. Let me give some more color on that. Both kind of the macro piece for us as we think about diversification and those things, and I can give you a little color on the Q2 performance that you asked about. But listen, I'd say a couple of things on pricing, going back to our call in May. First, it's super important to remember that over 50% of our products are sourced domestically and wouldn't be subject to any tariffs. Now some of the important goods, obviously, tariff rates are significantly higher today than they were when we spoke in May. So as you'd expect, there'll be some modest price movement in some categories, but it won't be broad-based. And I think it's important to keep in mind as well, our customers tend to shop for the entire project. And you think about a small flooring project, tile, grout, bathtub, and vanity, and a bath project. And so we're laser-focused on protecting the cost of the entire project. And so, listen, our goal is to maintain the best value for our customers. We're gonna take a portfolio approach as we've talked a lot about in the past. As we always do. And we'll have a price leadership position in home improvement. The second piece you alluded to some of the dynamics in Q2, when I mentioned in my prepared remarks about some promotional activity, that was really focused around just some of the smaller garden projects. Think molds, think chemicals. Those were the biggest headwinds that we had as it re”