“I would say domestic freight should be a tailwind as well, but that will be partly dependent on diesel fuel prices that are above $5 now. And so it will be partly dependent on what happens with fuel.”

In context

“just simply through sales per square foot, sales per store, it's above pre-COVID levels. The operating margin obviously is below, but it seems like there's momentum into the fourth quarter and next year, and you might have line of sight in terms of how to get back to pre-COVID levels of operating margin. What do you think is -- where do you have the clearest line of sight in terms of -- is it freight? Is it merchandise margin? Is it SG&A leverage? What do you think creates the clearest path back to pre-COVID levels of profitability? Michael Hartshorn: Well, sales, number one. There are structural changes in wages across the U.S., but I don't think you're going to get that back to the labor that you had pre-COVID. Certainly, ocean freight is going to be a tailwind for us going into 2023. I would say domestic freight should be a tailwind as well, but that will be partly dependent on diesel fuel prices that are above $5 now. And so it will be partly dependent on what happens with fuel. But most importantly, it will depend on top line sales. Operator: And our next question comes from the line of Jay Sole with UBS. Jay Sole: My question is just, with all the inventory out there, not just in terms of apparel and footwear, but many categories, are you seeing any opportunities to expand the business into some new areas and new categories that maybe you have it before just because the buys are so good? Barbara Rentler: Look, I would say, the merchants are out there looking for all kinds of buys. And yes, that does happen. Often you wind up opening up some new resources, which we have, as there's availability and the vendors are looking to partner with people. So it's both. I mean we're absolutely doing that, and that's a piece of it. Jay Sole: And Barbara, do you think th”