Guidance Moderation
Q: Does guidance reflect weakness in first half or also lower H2 expectations?
A: The moderation in guidance reflects both the softness in the first half and adjusted expectations for the second half. - The back half is expected to be similar to the first half at the midpoint, based on current business outlook and performance. -

Gross Margin Outlook
Q: How can you maintain gross margin guidance despite Canada being more dilutive?
A: Although Canada is expected to be a bit more dilutive to gross margins than initially expected, this was largely anticipated and built into the guidance range. - Short-term pressures are viewed as transitory, and benefits from supplier partnerships are expected to contribute in the back half, allowing the full-year gross margin outlook to remain stable. -

July Trends
Q: Are July trends softer than June's improvement?
A: July trends remain solid, though possibly not as strong as June, which was the best performer of the quarter. - Factors like the timing of the July 4th holiday and challenging year-over-year comparisons due to prior hot weather make July a bit hard to read, but overall, the company feels positive about the start of the quarter. -

Expense Management
Q: Can you manage SG&A growth amid potential industry softness?
A: The company balances operations to address business softness without sacrificing service. - - There's flexibility to adjust staffing levels, even with a higher full-time employee mix, and they are confident in managing productivity to support results while investing for the long term. - -

Consumer Behavior
Q: Are customers deferring large undercar repairs or trading down?
A: There is some deferral of high-ticket undercar service items, especially in repair shops, due to consumer pressure. - - However, the company is not seeing significant trade-down; customers continue to migrate to best categories, driven by higher-end products and proprietary brands. - -

Price Investments
Q: Is another round of price or expense investment needed to maintain share gains?
A: No further price investments are necessary. - The strategic investments made in professional pricing have paid off, and the company doesn't see material changes requiring additional price adjustments to continue gaining market share. -

Catalysts for Growth
Q: What will accelerate industry growth from here?
A: The company focuses on controlling its own destiny by improving execution and service. - Tough times present opportunities to gain share as competitors may overreact, and they are committed to driving share gains through internal efforts. -

Weather Impact
Q: Was weather a net benefit or headwind in Q2 growth?
A: Weather was likely a net positive in Q2 due to the onset of hot weather leading to initial failures. - Over the first half, weather impacts have evened out with various fluctuations, but it's considered broadly neutral overall. -

Gross Margin from Acquisition Costs
Q: Did Q2 benefit from lower product acquisition costs?
A: Yes, there was a net benefit in Q2 from product acquisition costs as the environment normalizes post-COVID. - The company expects incremental benefits in the back half, although not significant deflation, as supplier pressures stabilize. -

Store Openings
Q: Will store openings increase in future years?
A: No change is expected in the pace of store openings; the company feels good about the current level in the U.S., Mexico, and Canada. - Continued investment in distribution infrastructure supports this steady growth pipeline. -