Quarterly guidance

Comparable sales
Positive comparable sales during the fourth quarter.

Annual guidance

Net capital expenditures
$675 million to $700 million.
Share repurchases
$425 million to $450 million.
Sale-leaseback proceeds
$325 million to $350 million.

Outlook

Consumer environment
Consumers remain cautious due to elevated interest rates, reduced housing mobility, and higher fuel costs.
Cost pressures
Higher transportation costs, carrier rates, and fuel expenses continue to pressure gross margins.
Depreciation
Depreciation growth is expected to moderate to mid-single digits or lower in 2027 following years of elevated capital investment.
Capital expenditures
Capital expenditures are expected to move below 4% of sales in 2027 and beyond.
Operating margin
Management is committed to restoring operating margins above 9% over time and achieving leverage as comps move above 2%.