Dorman Products Inc. Third Quarter 2026 Earnings Call - DORMAN PRODUCTS INC

Good morning. My name is Nikki, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dorman Products 3rd Quarter 2026 Earnings Conference Call. All participant lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like a question at that time, please press star 1 on your telephone keypad. Please be advised that today's conference is being recorded. Lastly, if you should need operator assistance, please press star zero. I will now turn the call over to Alex Whitelam, Vice President of Investor Relations. Please go ahead. Thank you. Good morning, everyone. Welcome to Dorman's third quarter 2026 earnings conference call. I'm joined by Kevin Olson, Dorman Chairman, President, and Chief Executive Officer, and Charles Rayfield, Dormans Chief Financial Officer. Kevin will begin with a high-level overview of the quarter, our segment-level performance, and market trends. Charles will walk through our third quarter financial results in more detail, discuss cash flow and capital allocation, as well as our updated guidance, before turning it back to Kevin for closing remarks. After that, we'll open the call for questions. By now, everyone should have access to our earnings release and earnings call presentation, which are available on our website at investors.dormanproducts.com. Before we begin, I'd like to remind everyone that our prepared remarks, earnings release, and investor presentation include forward-looking statements within the meaning of federal securities laws. We advise listeners to review the risk factors and cautionary statements in our most recent 10-Q, 10-K, and earnings release for important material assumptions, expectations, and factors that may cause actual results to differ materially from those anticipated and described in such forward-thinking statements. We'll also reference certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are contained in the schedules attached to our earnings release and in the appendix to this earnings call presentation, both of which can be found on our website. Finally, during the Q&A portion of today's call, we ask that participants limit themselves to one question with one follow-up and to rejoin the queue if they have additional questions. And with that, I'll turn the call over to Kevin. Thanks, Alex, and good morning, everyone. Thank you for joining us today. Let me start with our third quarter results and provide commentary on the performance and key trends we're seeing across the business. I'll then turn it over to Charles. Turning to slide three, we delivered a solid third quarter with top-line growth in each of our three business segments. Consolidated net sales were a record $562 million in the third quarter, up approximately 3% compared to the same period last year. Consistent with the expectations we outlined in our Q2 earnings call, our growth this quarter was primarily from volume increases in our light-duty and heavy-duity segments, driven by new products and business wins, offset partially by pricing decreases in certain categories. Our largely non-discretionary portfolio continues to perform well through various market cycles. Adjusted operating margin was 15.8 percent and adjusted EBITDA margin was 18.5 percent in the quarter. Keep in mind we are lapping a tough comparison. Last year's third quarter benefited from the timing of tariff related pricing without the higher tariff-related costs. As a reminder, we'll see this dynamic again in the fourth quarter as well. Adjusted diluted EPS in Q3 was $2.08 compared to $2 and 62 cents in the same period last year we are narrowing our full year 2026 guidance given our performance year to date and the visibility we have for the remaining months of the year we now expect full year net sales growth of two to three percent adjusted diluted eps for the year to be in the range of eight dollars and fifty cents to eight dollars Charles will walk you through this in more detail shortly. Turning to slide four in our light duty segment, net sales grew approximately 3% year over year to $444 million, driven by our DIFM focus categories and channels. Year to date, light duty net sales were up approximately 2%. During the quarter, POS across our top customers aligned with total net sales growth. We continued to see more pressure on the DIY side, while our DIFM business, which represents the larger share of our portfolio, delivered solid growth. Looking at POS year-to-date, our performance was up mid-single digits. Operating margin was 18.5%, down 520 basis points year-over-year, again due to the timing of tariff-related pricing and associated costs in the third quarter of last year. From an industry perspective, the fundamentals of the light-duty aftermarket remain positive. Vehicle miles traveled continued to increase year over year despite increased fuel prices. DIY consumers appeared to feel the effects of more widespread inflation during the quarter, but our DIFM-focused business was more stable. We also continue to benefit from the evolving mix of the vehicle population, as light-duty trucks and SUVs represent a growing share of vehicles on the road. This is contributing to a higher average age of the VIO, as drivers tend to hold on to these vehicles longer. They also present margin opportunity over the long term, as parts for light-дuty trucks and SUVS tend to have higher average selling prices. A great example of how we're expanding our portfolio for these vehicles is the recent launch of our new four-wheel drive locking hub actuator. This OE fix solution covers a wide range of vehicle models, including the Ford F-150, Expedition and Bronco, and the Lincoln Navigator. The original part often fails due to cracking in the internal diaphragm, causing a vacuum leak. We've designed ours with an upgraded diaphragm material that is more resistant to wear, which provides our end users with a more durable, longer lasting repair. This is exactly the type of product that reinforces Dorman's leadership in the aftermarket innovation. Congratulations to the light duty team on another excellent OE fix launch. Turning to slide five in our heavy duty segment, net sales increased approximately 5% year over year to 66 million, driven by higher volume and pricing certain categories and channels. Year-to-date, heavy-duty net sales were up approximately 8%. Operating income margin was in line with our expectations at breakeven as the quarter was impacted by the timing of higher tariff and shipping costs. As we mentioned in prior calls, the heavier impact of tariffs would be absorbed later in 2026 to the HD segment. We remain focused on improving the margin profile of the business as volume continues to improve. On the broader sector, pressures in the trucking market continued through the third quarter. While we saw increased freight rates as capacity further compressed, we didn't see a significant uptick in freight tonnage. That said, we have been cautiously encouraged to see tonnages indicators stabilize over recent months. our channels we continue to see oe dealers drive growth using aftermarket repair solutions in their service centers this presents a prime opportunity for us to capture share with our high quality parts at aftermarket price points on the product front we continue to diversify our portfolio with innovative solutions we recently launched a windshield wiper arm that was new to the aftermarket this part is a component of a holistic offering of wiper related solutions that are applicable across multiple platforms these launches further expand our above the frame offering for oe dealers and other customers which ultimately strengthens our relationship with fleets across north america congratulations to the heavy duty team for continuing to drive innovation across the business turning to slide six in our specialty vehicle segment net sales were up approximately three percent year over year at 52 million driven by portfolio expansion and pricing initiatives in certain categories year to date specialty vehicle net sales are up approximately one percent operating income margin was 13.1 percent up 30 basis points year over year largely driven by the growth i just mentioned higher freight costs in the quarter weighed on our overall margin profile on the broader market we saw significant growth in new vehicle sales during the quarter particularly with work-related utility machines in higher-end cab vehicles marketed to affluent riders these tend to come with lower attachment rates at the dealer, but our team is doing a nice job expanding our parts portfolio to meet our riders at various stages of the vehicle lifecycle. On this front, we're seeing sales of repair and maintenance solutions accelerating as riders hold on to their vehicles longer. Currently, however, we are seeing some riders pull back on the frequency of their riding activities as higher fuel prices are driving up the cost to trailer and ride their vehicles. From an innovation perspective, our team has done an excellent job developing products that meet our riders' evolving needs. As demand for cab units has increased, our teams have responded with high-quality alternatives for machines without these features pre-installed. A great example is the recent launch of the hard cab enclosure for the CFMOTO Z-Force 800. This solution offers riders protection from dust, debris, and harsh elements, while also providing comfort with our breeze-right ventilation. Our upper doors, along with our front and rear windshields, are built with highly durable abrasion-resistant polycarbonate material, which is significantly stronger than glass. This is exactly the ruggedness that our brands are known for. Congratulations to the Specialty Vehicle team for the speed of the market with this great solution. With that, I'll turn it over to Charles to cover our results in more detail. Charles? Thanks, Kevin. Turning to slide seven, I will walk through our consolidated financial performance for the third quarter. Total net sales for Q3 were a record $562 million, up approximately 3% compared to the prior year period. As Kevin noted, top-line growth is driven by solid performance across each of our business segments, with our non-discretionary portfolio enabling growth despite headwinds persisting across our respective markets. Year-to-date, net sales were $1.64 billion, up approximately 3% compared to the same period in 2025. Adjusted gross margin in the quarter was 39.4%, down 500 basis points year-over-year. As Kevin mentioned, last year's third quarter benefited from higher pricing without higher tariff-related costs impacting our margins. Our team did a nice job managing expenses in the quarter, as adjusted SG&A as a percentage of net sales was 23.6%, down 30 basis points year over year. Adjusted operating income in the corner was $89 million, and adjusted operating income margin was 15.8%. Year-to-date, adjusted operating income was $275 million, down 4% compared to the same period last year. Looking forward, we remain focused on realizing cost savings through our supplier diversification, productivity, and automation initiatives across each of our segments. Adjusted diluted EPS in the third quarter was $2.08, down 21% year-over-year, in line with our operating performance. A lower share count offset lower other income and a higher tax rate in the quarter. Year-to-date adjusted diluted EPS was $6.73, flat compared to the same period last year. Turning now to slide eight, operating cash flow for the quarter was $65 million, and free cash flow was $57 million, highlighting the nice job our team did on the working capital front. I'd also note that with additional cash on hand, we've reduced our factoring volume. This lowered free cash flows sequentially from last quarter, but it also reduced our factory expense. In regards to capital allocation, we deployed $15 million in opportunistic share repurchases that retired approximately 115,000 shares at an average price of approximately $127 a share. Through the first nine months of the year, we've deployed a company record of $112 million on share repurposes. Going forward, we have $348 million remaining on our share repurpose authorization that extends through 2027. Turning to slide nine, our balance sheet remains strong. We ended the quarter with net debt of approximately $283 million and total liquidity of $966 million. Our total net leverage ratio at the end of Q3 was 0.65 times our adjusted EBITDA, which positions us extremely well to invest in the business, pursue strategic M&A opportunities, and return capital to shareholders through opportunistic share repurchases. Turning out of slide 10, we are updating our full-year 2026 guidance, given our performance through the first nine months of the year and the visibility we currently have for Q4. On the top line, we now expect full-year net sales growth of 2% to 3%. This update reflects continued soft DIY demand and the timing of additional tariff-related price reductions that are expected in the fourth quarter. That said, the growth through the remainder of the years is expected to be volume-driven, given the success we're seeing with new product development and the category wins we previously discussed. Consistent with our comments last quarter, we continue to expect gross margin in the fourth quarter at approximately 40%, exiting the year with a structural base for 2027. For adjusted operating income margin, we've narrowed our guidance to the top end of our prior range and now expect 16% to 16.5% for the full year. In addition, we now expect a full year effective tax rate of 23.5%, to 24%. On the bottom line, we know anticipate that adjusted diluted EPS for the year will be in the range of $8.50 to $8 and 70 cents narrowed from our prior range of 850 to 880. while we continue to experience short-term noise in our overall markets and performance our long-term approach remains the same we are focused on our innovation strategy and expanding an undiscretionary portfolio driving efficiencies and cost savings across the business in delivering for our customers additionally our strong balance sheet gives us meaningful levers to drive growth going forward with that i'll now turn the call back over to kevin to conclude kevin thanks charles let me close by reinforcing a few points first we delivered a solid performance in the quarter with top line growth across each of our business segments second and as charles mentioned our strong balance sheet positions as well to make strategic investments in the business as we demonstrated this quarter with continued share repurchases and finally we remain focused on our long-term strategy to drive shareholder value. The structural drivers of the aftermarket demand remain in place, and our innovation engine, diversified supplier network, and financial flexibility position us well for the future. We appreciate your continued interest and support, and with that, we'll open the call up for questions. Operator? Thank you. At this time, if you wish to ask a question, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, you may do so by pressing star 2. We remind you to please pick up your handset and please limit yourself to one question and one follow-up question. We will take our first question from Scott Stember with Roth Capital. Please go ahead. Your line is open. Thank you. Thanks for taking my questions. Just a question on POS. So I just want to clarify that all of the softness or net, I guess, softness compared to what we've seen in the last couple of quarters, that was just strictly due to DIY. And I just wanted to confirm that DIFM, that the trends have really not changed the positive trajectory. Hey, Scott. Good morning. It's Kevin. I'll handle that question. And just POS in general, as we talked about in our prepared remarks, we're essentially aligned with our net sales growth in the quarter. I'll just note that that's down a bit from where we were in previous quarters, at mid-single-digit growth, and that's because, you know, we lacked the price increases that went in place last year in the third quarter, on top of the fact that we started reducing pricing in the second quarter of this year. In terms of your question around the segments, you are correct. DIY remained pressured from a POS standpoint, and DIFM was certainly more stable. The hard part business, DIFN, you know, we've continued to see that strengthening as we've moved through the year. But DIY does remain pressured. And I'll just also note, when you step back and look at the entire industry dynamics, they continue to remain positive. Vehicle miles traveled continue to increase year over year despite the higher fuel prices. But it's clearly something that we're keeping a close eye on. And as I also mentioned in the prepared remarks, that, you know, light-duty trucks and SUVs continue to become a bigger part of the prime VIO. And for us, that's a really good dynamic as we have a, you Know, it's a higher average age and a higher Average Selling Price opportunity. Got it. And then last question, in light duty, you know, last quarter, and you just talked about how you've been adjusting pricing with customers due to tariffs. But how is that changing now that we have diesel going up 40% since the last quarter and now with short-term rates going up, you Know, potentially affecting your factoring expenses? Yeah, thanks, Scott. This is Charles. I'll start with that one. So, all good questions. Ultimately, those are input components that are things that we factor into our pricing decisions periodically. So, as we go forward through the next couple of quarters, those Are things we'll look to to consider in those pricing decisions. But ultimately, yeah, to your point, fuel costs have gone up. We're starting to see that. We've also seen some increases in interest rates with the Fed raising the borrowing rate. But ultimately, they're input costs. We consider them as we make those pricing decisions. Yeah, Scott, I'll just add to Kevin. We have a long track record of handling inflationary and deflationary situations through our history. We have a long track record of being able to handle that, particularly, you know, in the last six years where we've had some pretty wild swings in inflation and deflation. Got it. Thank you. Thanks, guys. Thank you, Kevin. We will move next with Jeff Lick with Stevens Inc. Please go ahead. Your line is open. Good morning, yeah. Thanks for taking my question and congrats on nice results. Kevin, you know, we're probably eight months in now to the elevated gas prices and, you know, throughout kind of the auto ecosystem, we are seeing, you know, a transition to vehicles that are kind of less likely to be trucks and SUVs and, you know maybe a marginal preference for, you know, even EVs and sedans. I'm just curious, you have maybe a two-part question, one is how does that dynamic affect your you can ideation process and are you guys already you know identifying things that might be too early uh in breakage uh and then also are there parts you can come up with or that you have that because the the light duty trucks and the suvs they're already in the population right so if you have one you got one are there are parts that can actually help with fuel efficiency or or does the equestrial fuel efficiency help you guys? Hey, Jeff, it's Kevin. Good question. I'd say, number one, you know, the current VIO continues to be favorable for us. Keep in mind that, you Know, our prime repair cycle is that vehicle in that, you know 7, 8-year-old range, and then we kind of carry that through to about 13 to 14 years old. So any kind of change dynamic on the front end via new car sales takes a long time for it to impact in the aftermarket. That being said, so we have a very long tail. That being sad, all new vehicles continue to present a lot of repair opportunities, whether it's a pure BEV, a hybrid, or a pure ICE vehicle. So we're drivetrain agnostic, as we've talked a lot about before. uh we see a lot of repair opportunities and bevs matter of fact we see higher average selling prices for repair opportunities in beb so whatever the repair opportunity uh that presents itself to us you know we'll have a solution for it and just a quick follow-up just building on scott's question you know obviously 90 days ago that was a very fluid situation with your tariff refunds and the dynamics with the large retailers. I'm just curious as you mentioned two factors, one maybe a softening DIY environment, and then obviously the pricing dynamics that were probably tariff related and then last year's compares. Maybe could you just handicap or proportion what part of the revenue guide down was related to the pricing versus the softening environment? Was it 80-20, 20-80? Any help there? Much appreciated. yeah thanks jeff this is charles yeah so we we we are going to split that out for a variety of reasons um but to your point you know just going back to the drivers of uh of that guide uh you know the two to three percent you know we saw some diy uh soft continued softness in that area um and you know to the point you just made um you knowwe we did you know we continue to go through those negotiations with customers and you know seeing the the the IEPA tariffs down, you know, in kind, like we talked about last quarter, the anticipation was, and our high preference was to bring prices down, commensurate with how we went up. So on the way down, we took prices down as well. But we're not going to break out the negotiations we've had with those customers or the breakout. But preference was the lower overall pricing because we think this is ultimately going to benefit end customers. But with that said, we feel pretty good with where we're at currently. But, you know, we feel good with where we sit here, and the 2% to 3% is reflective of where we see the fourth quarter going as well. Thanks very much for taking my questions. Best of luck in Q4. Yeah, thanks, Jeff. Thank you. We will move next with Brett Jordan with Jeffries. Please go ahead. Hey, good morning, guys. To that last point, to the extent I guess you're going to return the IEPA refunds via lower prices to your customers, but you said you expect that to benefit the end customers. Do you actually see your customer base lowering retail prices? Yeah, Brett, look, I think we mentioned this, as Kevin, we mentioned it this last quarter. We obviously, you know, would hope that a lower end price to customers becomes a reality. But frankly, we can't control that. And we're certainly not making any predictions whether that's going to happen or not. But again, we'd love to see lower prices for our ultimate end customer, the guys hanging the parts on the vehicles and being able to help the folks that need to repair their vehicles to get to and from work every day. But we can control that and we're not going to make any predictions on what happens in the ultimate end market. Okay. And then the decision on factoring volume, is that because you had incremental liquidity from IEPA refunds, or is there a change around the factoring strategy, and has the price of factoring changed materially? Yeah. So, good question, Brett. This is Charles. As you know, the Fed raised rates, so the facturing costs are software plus in most instances. So obviously we've seen some increases in some of those facts and costs. Our overall strategy hasn't changed. We continually look at our cash flow needs relative to the facts and costs. So the overall strategy hasn'T changed. It's something that we monitor on an ongoing basis. We'll continue to do so, but no major change in how we look at it. Great. Thank you. Thank you. Our next question comes from Gary Prestapino with Barrington Research. Please go ahead. Hi. Good morning, all. Hey, Kevin, could you just remind us how much of your portfolio now is discretionary versus non-discretionary? yeah gary we we um we haven't really broken that out because frankly um that's a difficult one to really pin down an exact number on but i will tell you that in general the vast majority of our portfolio is non-discretionary your car is either not running safely or it's not running for the most part. But we certainly do have some more discretionary DIY type items. Those tend to be more in the front rooms of a lot of our customers, but the vast majority is in the back room, non-discretionary hard part. Okay. And then just to follow up, you mentioned that you're seeing more dealers, OE dealers using aftermarket parts on the heavy duty side. Can you give us some idea of, you know, how much aftermarket parts have proliferated in the repair process for heavy duty and where you might see that go? I know I'm talking about just for your company, but just in the market itself. Yeah, the market overall, Gary, and this is one of the reasons why we entered the heavy duty market, because, you know, the OEs still control a very large portion of the aftermarket, right? they're up in the 60% range, whereas on the light duty side, it's down in the 30% range. And that's really tied to warranty repair. So it's one of the reasons why we like this space so much. We see an opportunity to continue to take share from the OE with high quality aftermarket solutions at a lower price point. So you're going to hear us continually talk about that, expanding our above the frame portfolio that will allow us to continue to take share from the OE dealer. So the OEs are right now about 60% of the market? Definitely, yeah. Okay, thank you. You got it. Thank you. Our next question comes from David Lentz with Wells Fargo. Please go ahead. Hey, guys, good morning, and thanks for taking my question. I'm curious if you can talk about the implied Q4 in that sales guide. I think it's flabbergasted slightly down to up 4% plus, and what the drivers could be to get to you to the low end versus the high end. Yeah, thanks, David. Appreciate the questions. This is Charles. I'll start. So we talked a lot about in the last call the fact that we thought there would be a lot more volume coming through in the back half of the year, and we've certainly seen that in the third quarter. We would expect that to continue in the fourth. So, you know, the guide's reflective of the fact that we continue to see a softened, you know, DIY market, you knows, given what we see with some of the pricing actions that we've taken related to the tariff downs. You know, we think we'll continue to be, you know, good volume come through with new product launches and, you know, some of them new business that we brought on board. but a lot of it will be based on how that volume comes through. But we feel pretty confident with the 2% to 3% range, but largely volume-driven in the back part of the year in Q4. Got it. That's helpful. And then inventories declined, I think, with one double-digit year-over-year in Q3. So I'm curious if you could talk about the drivers of that and how you're thinking about trends over the next couple of quarters on an inventory basis. Yeah, great question. And so when we saw the inventory increases, a large portion of that was due to, you know, some of the heightened IEPA tariff costs that got capitalized into our inventory. So a lot of the flow through was simply that inventory bleeding out, you know, to the P&L. We also, you know, strategically took up inventory last year and, you know, bled through some of that. You know, that said, you know, we think we'll start to see inventory start to come up a little bit as we go through the next couple of quarters. but, you know, expect free cash flow still to be, you know, pretty solid and kind of in the range that we had talked about previously, which, you know, typical run rates, you know, high 100, sort of low 200 million-ish range, you know, X, yeah, the cash, you know, cash impacts. Great. Thank you so much. Yeah, you bet. Thank you. And once again, that is star and one on your telephone Keypad if you would like to join the queue. We will move next with Tristan Thomas-Martin with BMO Capital Markets. Please go ahead. Hey, good morning. Just a question on pricing. Right, so you began price reductions in the second quarter of this year. Does that mean it remains a headway in the first quarter of 27 and then kind of normalizes thereafter? Yeah. Hey Tristan, this is Charles. Yeah, so as Kevin talked about previously, We started to see some prices come down in the third quarter. We'll expect to see more of that happening in the fourth quarter. That said, we'll have to laugh at that as we go through at least the earlier part of next year. We're obviously not giving guidance on 2027 at this point, but, yeah, that will have to have some impact next year, but taken as a whole, we consider a lot of the other cost inputs when we look at pricing, But, yeah, overall, we'd expect to see some impact of the price downs through next year. That has to be taken into account from some of the volume impacts that we think we'll see, as well as other pricing impacts we'll have to consider as we go through the first part of the year. Okay, thank you. And then just on specialty vehicles, I think you're the first company I've heard call out headwinds on enthusiast activity. What are you kind of seeing, like, what's kind of underlying that claim in terms of what you're seeing? Justin, can you repeat that? We didn't catch the first part of that. Oh, just higher fuel prices impacting enthusiast activity. What are your kind of, like – what are you seeing specifically to kind of lead you to make that? Yeah, good question. I would say that, you know, we're clearly seeing a stronger performance in the more utility, work-related type vehicles. And when you look at our more recreational-focused parts and accessories, we'RE seeing softened demand. So it's probably pretty clear that we are seeing that fuel prices are impacting that end market segment. I mean, fuel prices were up 30% year-over-year in the month of September alone. Okay. Maybe I've forgotten. Does the Super ATV sell consumables on the off-road vehicle side? I'm sorry, Tristan. I didn't catch the first half of that again. No, it's probably my fault. But does the Super ATV sell things like oil? Is there any specific metrics or products you can point to that's indicating a decline in actual activity? No, we don't. Not that we talk about publicly, but I would tell you, Tristan, just in general, roughly half of our portfolio is tied to what we would consider break-fix or kind of non-discretionary repair. And then roughly 40% to 50% of our business is tied more to the utility work-type vehicle, if that helps you. Okay. Thank you. Thank you. We will move next with Justin Agis with CJS Securities. Please go ahead. Hi, morning all. Good morning. The last, you know, few quarters you guys have had low leverage and you've been, you now, active repurchasing shares. Can you just talk a little more detail about capital allocation priorities and where you see the most focus right now? Yeah, sure. I'll take that one, Justin. So, overall, the capital allocation strategy, you know, has not changed. So we're looking at debt levels, as you've noted, the leverage level is below 0.7 currently. So not so concerned about that. You know, next year, we're going to put money back into new product development. We think we get our us returns there. And then, you know, third, we're looking, you know, at M&A. You know, Kevin's talked about, you know, some of the M&As strategy, you know, on recent calls. And in fourth, we are looking opportunistically at shared buybacks. So thus far, you know, this year, we've had a record number of buybacks, we continue to do about 15 million in the quarter. And we'll continue to look at that opportunistically, so not putting out any targets for share buybacks at this point. So, you know, we tend to do a little bit less M&A. We tend to look a little more at share buybacks as we get a little more active going forward. We may look to pull back on that a little bit, but that's the summary of the capital deployment strategy. All right. Thank you for that. And then, you know, you made some comments about the interplay between DIY and DFIM. Can you give us a general idea of the size of each of those channels as it relates to your business? Yeah, Justin, yeah, I think we talked a little bit about this earlier, that we don't break out a specific target. Our DIY-focused portfolio typically tends to be in the front rooms of our customers, but the vast majority of our portfolio would be more DIFM slash professional focused, and those are in the back rooms. I hope that helps you. All right, yeah, thanks for taking the question. You got it. Thank you. This concludes our Q&A session and today's conference call. Thank you for your participation. You may now leave.