“We expect EBIT margin flow-through of about 10 to 15 basis points for each additional point of above-plan sales.”

In context

“a new customer or the existing customer is spending more. What we did see is our performance, as we said in the commentary was broad-based across region, but it was broad-based really across all aspects of our business, including geographically, income levels and age. Barbara Rentler: And in terms of -- Matthew, in terms of the drivers, the categories, the ones that I said, cosmetics, home and Children's were really the best, Accessories was slightly above the chain and apparel trailed the chain. But again, it performed above our plan. And I think part of the things that really drove it was we had a big push this year in home on gifting, and we added some new classifications and the customer responded. Adam Orvos: Yes. And on the flow-through question, this is Adam. Nothing has changed. We expect EBIT margin flow-through of about 10 to 15 basis points for each additional point of above-plan sales. And with our guide of plus 2% to 3%. And on a 52-week basis, you see margin rate expansion. We're getting some benefit also this year of lower incentive costs based on our outperformance from 2023. Operator: And the next question comes from the line of Mark Altschwager with Baird. Mark Altschwager: Maybe first, Barbara, just any hypothesis on what might be driving the weaker-than-expected dd's performance in newer markets? And maybe comment also on how the Ross Dress for Less stores in newer markets have been performing relative to your expectations? Michael Hartshorn: Just on -- I'll start with the Ross. The Ross new markets have been performing at or above our expectations. From a dd's standpoint, as we said in the commentary, the overall comp was just is slightly below Ross for both”