“we continue to target a 35% dividend payout ratio.”

In context

“rmal spring season, the timing of spring is unpredictable and always brings some variability to our first half performance. Given our customer mix, these DIY drivers disproportionately impact our business. Now more specific to our first quarter, we expect comp sales to be consistent with our fourth quarter results approximately 300 basis points below the bottom of our full year guide. The combination of lower sales volumes as well as cycling a sizable legal settlement is expected to result in a Q1 operating margin rate approximately 200 basis points below the prior year adjusted rate. Before I close, let me remind you of our capital allocation strategy, which remains unchanged. Our first priority is to reinvest in the business with capital expenditures of approximately $2 billion. Next, we continue to target a 35% dividend payout ratio. We also plan to use our free cash flow to repay a $450 million bond maturity and then return excess cash to shareholders through share repurchases. In closing, we are confident in our ability to execute through the near-term market uncertainty and remain focused on realizing the benefits of our total home strategy while continuing to drive sustainable shareholder value. And with that, we'll open it up for questions. Operator: [Operator Instructions] Our first question today comes from the line of Peter Benedict with Baird. Peter Benedict: First one would be just around the sensitivity of your margin forecast, if comps end up trending below that 2% to 3% range for the year, and then alternatively, as you think perhaps longer term, as comps swing positive, just what types of incremental”