“we have some other variables, such as shrink in credit. We expect that to largely be neutral over the back half.”

In context

“second half, the way you're looking at the business since you have some head start here in the first quarter. Brandon Sink: Yes. So Simeon, this is Brandon. A lot of this is timing-related and specifically around gross margin. So as I said in my prepared results remarks for Q1, 74 basis points of improvement driven by product margin rate mix. We also benefited from proprietary credit. But keep in mind, the benefits on the product margin side are temporary in nature, especially -- can be temporary in nature, especially in periods of inflation. Cost layers are going to lag and that's true for both commodity and product-related inflation. So as we cycle into Q2, we do expect some level of step back, specifically due to lumber deflation that began. We began seeing that late March. And then we have some other variables, such as shrink in credit. We expect that to largely be neutral over the back half. And then the supply chain, inclusive of market delivery build-out, higher transportation costs are going to be a slight drag, which is consistent with what we've guided and what we've messaged. So it's mainly margin, it's mainly timing as the cost layers turn a bit of a step back. But for overall margin, modest improvement in margins for first half and up slightly for the full year. So that's the reason we didn't flow the beat to the full year. Marvin Ellison: So Simeon, this is Marvin. I think it's important for me to note that we're really pleased with the profit performance in the first half. For a retailer our size is really difficult to have declining sales on a year-over-year basis and have leverage from an operating margin and gross margin perspective. That took a lot of work and”