“Ocean freight will probably be the most tangible tailwind for us.”

In context

“l just alluded to. So we feel between the 2 of those, we'd be able to offer great brands, strong values and a broader assortment. Operator: And our next question comes from the line of Alex Straton with Morgan Stanley. Alexandra Straton: Great. Just as it relates to the updated guidance, perhaps could you kind of talk about what the key swing factors are there that could drive you either to the higher or the lower end of that new range? Adam Orvos: Yes, sure. Alex, this is Adam. So given our guidance of flat to minus 2% comps, we'll have some deleverage impact from sales. Markdowns will be higher than last year in fourth quarter, but not as impactful as in third quarter. Domestic freight, we see as slightly neutral, seeing some benefit in rate, but offset by still elevated fuel prices. Ocean freight will probably be the most tangible tailwind for us. As you remember, last year, we were getting into the period where rates were escalating significantly, demand was high. So that will be a tailwind for us. And then given our outperformance last year and our underperformance this year, incentive costs will be lower in Q4 versus last year. And then finally, depending how the end of the year plays out, we'll likely see some pressure from packaway timing in fourth quarter also. Alexandra Straton: Great. That's super helpful. Maybe could I just follow up on your inventory levels? I think you said they were up low double digits year-over-year exiting the quarter, which seems like a pretty lean level. So maybe could you tell us, do you feel like you have enough heading into the fourth quarter? Or how are you feeling about the levels and then j”