“We also expect first-quarter operating margin rate to be approximately 50 basis points below the bottom end of our full-year guide driven by deleverage on the lower sales volume, the wrap of incremental wage actions for our frontline associates, and the prioritization of investments in our total home strategic initiatives, including category accelerators to capture the spring selling season.”

In context

“ess interest income due to lower short-term investment rates. These assumptions result in expected full-year diluted earnings per share of approximately $12.15 to $12.40. We also expect capital expenditures of approximately $2.5 billion as we invest in our total home strategic priorities and begin to ramp up new store builds. In 2025, we plan to open five to ten new stores. To assist with your modeling, here are a few items to keep in mind for the cadence of the year. We expect comp sales in the first half to be roughly flat with some spring demand moving from the first quarter into the second quarter where we are cycling particularly poor weather. Taking this into account, we expect first-quarter comp sales to be approximately 200 basis points below the bottom end of our full-year guide. We also expect first-quarter operating margin rate to be approximately 50 basis points below the bottom end of our full-year guide driven by deleverage on the lower sales volume, the wrap of incremental wage actions for our frontline associates, and the prioritization of investments in our total home strategic initiatives, including category accelerators to capture the spring selling season. In closing, we remain focused on executing at a high level through the near-term market pressures by driving productivity, diligently managing cost, and investing in our total home strategy, all while continuing to drive sustainable long-term shareholder value. With that, we will open it up for your questions. Kate Pearlman: Thank you. We are now ready for questions. Operator: To ask a question, press star two. In order to allow questions for as many individuals as possible, please limit yourself to one question and one follow-up. Our first question comes from the line of Christopher Horvers with JPMorgan. Proceed with your questions. Christopher Horvers: Thanks, and good morning, everybody. I want to talk a little bit about the strength that you saw in the fourth quarter and how you're p”