“We are expecting third and fourth quarter comp sales to be roughly 200 basis points better than our second quarter results, given the easier prior-year compares.”

In context

“tlook. We are now expecting sales in the range of $82.7 billion to $83.2 billion, with comparable sales in a range of down 3.5% to down 4%. We also now expect full year adjusted operating margin in a range of 12.4% to 12.5% as we continue to tightly manage expenses while also investing in our strategic priorities. Additionally, we expect full year net interest expense of approximately $1.4 billion and to repay a $450 million bond maturity in September. We also expect capital expenditures of approximately $2 billion and an adjusted effective income tax rate of approximately 24.5%. This results in an updated outlook for adjusted diluted earnings per share of approximately $11.70 to $11.90. Now to assist you with your modeling, here are a few points to consider for the back half of the year. We are expecting third and fourth quarter comp sales to be roughly 200 basis points better than our second quarter results, given the easier prior-year compares. And we also expect operating margin rate for the second half to be roughly in line with prior year, with Q3 approximately 70 basis points below prior-year rate and Q4 to be approximately 50 basis points above prior-year rate. The quarterly differences are driven by the timing of merchandising PPI initiatives as we turn through our inventory, as well as comparisons to prior-year incentive compensation expense and year-end discretionary bonuses. And finally, we are reconfirming our capital allocation priorities. We will continue to invest in the business to drive long-term growth while maintaining a 35% targeted dividend payout ratio and then use the remaining cash flows to fund share repurchases. This disciplined approach to capital allocation combined with improved operating performance a”