“We knew that would be a headwind coming into the year as we outperform this year and go up against an underperforming 2022. So that was a big moving part, and that will continue in the third quarter and fourth quarter, but would also comment the way we flowed incentive costs last year's second quarter was the most impactful quarter. So it'll still be a significant headwind, but in third quarter and fourth quarter, but not as significant as second quarter.”

In context

“he mid-13s? Adam Orvos: Yes, I'll take the first piece. Matt, this is Adam. Thanks for the question. Third quarter, from an operating margin standpoint, the components will look similar to second quarter. So ocean freight was a significant tailwind for us will continue in third quarter. But I'll remind you that in fourth quarter last year, we started to see the benefits of ocean freight. So it will moderate considerably in fourth quarter. But again, to answer -- third quarter versus second quarter should be comparable on that standpoint. From a domestic freight standpoint, again, we commented in the call on 60 basis points of good news, assuming fuel costs stay the same, we'd expect that to continue through the balance of 2023. Other big movers, we've commented a lot about incentive cost. We knew that would be a headwind coming into the year as we outperform this year and go up against an underperforming 2022. So that was a big moving part, and that will continue in the third quarter and fourth quarter, but would also comment the way we flowed incentive costs last year's second quarter was the most impactful quarter. So it'll still be a significant headwind, but in third quarter and fourth quarter, but not as significant as second quarter. Michael Hartshorn: Matthew, on the long-term growth algorithm. We still believe we can achieve gradual improvement in profitability over time. In general, EBIT growth, though, will be highly dependent on sustained strong sales growth and certainly how the macroeconomic and geopolitical factors, including inflation may continue to unfold. To achieve this, obviously, strengthening our price value offerings across our entire assortment is going to be key to that success. I'd say outside top line, we continue to believe there are opportunities throughout the P&L that can help drive comp growth and EBIT margin expansion over time. Adam Orvos: And I think you also asked markdown so we didn't answer that question. So given the elevated levels last fall, should expect some benefit as we move thro”