“We are seeing a pretty immediate impact from the oil prices. It's pressuring fuel, commodity-based products like resin and plastics. Q1 [ net impact ], Simeon, has been pretty manageable. Q2. We are starting to see some of that pressure.”

In context

“transactions to continue to improve. It is going to be centered in those repair maintenance categories, but anything we can get with the macro or any consumer engagement on these big-ticket discretionary categories is going to be upside to that. Simeon Gutman: And a follow-up, the cost environment, Brandon, looks like it's gotten a little bit more challenging since when you guided. Can you talk about the amount of cushion or, I guess, flexibility you have versus having to pivot either more PPI to be able to get to your margin goals, given the cost? Brandon Sink: Yes, sure, Simeon. The macro, as you mentioned, certainly introduced some new risks and uncertainties here in the last 3-or-so months monitoring the situation here pretty closely, impact to both the consumer and our supply chain. We are seeing a pretty immediate impact from the oil prices. It's pressuring fuel, commodity-based products like resin and plastics. Q1 [ net impact ], Simeon, has been pretty manageable. Q2. We are starting to see some of that pressure. We're beginning to work with our vendor partners, supply chain partners to work to mitigate through that, adjusting contracts where we can, sharing that burden. And then you mentioned we're looking hard at the PPI portfolio, where we can invest where we can pull some things forward where we can get outsized benefit to try to offset that. So all that work is very much in motion. And last thing I'll say is just while challenging, I think this team has proven the ability to effectively manage through that here in the past multiple inflationary cycles to be specific, three, that this team has lived through in the last 6-plus years, and we have a proven playbook here to remain competitive and manage profitability. So challenging, but confident that we can work our way through it here. Operator”