10/26/2022

speaker
Jeremy
Analyst

If you're looking for 200 basis points of freight drag in Q3, remind me what that was in Q2.

speaker
Management Executive
Unnamed Management Representative

It was 10 basis points of a tailwind, actually, Jeremy. So call it flat. We don't really have it.

speaker
Jeremy
Analyst

Okay. And then in terms of just – I want to come back to inventory for a second. It's clearly a hot topic. Okay. And if inventories are up about 110 percentage points versus three years ago, sales is up 88% in Q2. It's up about 80% versus three years ago here. As we start Q3, it looks like you have probably about $100 million of inventory left. above where the desired level would be. You're not going to be promotional. You feel pretty comfortable. But in terms of thinking about this, about your buying of inventory and your order rates, it's probably, I think you might acknowledge that it's a little higher than you'd like it to be. You have a couple of categories where You feel like it might be a little, whether it's work boots or other items, possibly ladies' fashion where it might be a little higher. Have you taken action to reduce future orders on a go-forward basis? Because I think, frankly, it's probably the inventory levels are what make people the most anxious about where the company's positioned today. Yeah.

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