“I'll maybe start at the end of your question. We expect Q4 to be promotional. It always is.”

In context

“, you see mix isn't a big driver of our margin results. And so I wouldn't think about it markedly any differently as we project ahead. Operator: Our next question is from Kelly Bania with BMO Capital. Kelly Bania: Curious if you could just help us dissect the gross margin a little bit between the promotional activity, the inventory impairment versus the cost of storing and moving this excess inventory. Because I think it would just be a little helpful for investors to interpret that comp and traffic number and just how you're thinking about that traffic and comp as the promotions moderate into Q3. And it sounds like Q4, you're planning for very little promotional activity. So I was just wondering if you could kind of parse some of that out to help us think about that. Michael Fiddelke: I'll maybe start at the end of your question. We expect Q4 to be promotional. It always is. And our plans plan for promotions that will provide great value to our guests and those seasonal moments that matter. That's been true in every Q4 in my 18 years here, and I expect it not to be any different this time around. With respect to unpacking the margin, I'll go back to some of what I said in my comments. And we were, year-over-year, 9 percentage points down, 7 of that is mostly driven by inventory actions and you see incremental markdowns as a piece of that. You also see the cost of some of those receipt cancellations that John talked about earlier. And then you see about 1.5 points of pressure from supply chain and digital. And a piece of that is related to us being heavier in the system and that drives some costs. A piece of that is the elevated freight and transportation”