Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Charles Grom - JPMorgan
Charles Grom - JPMorgan
Just on the 2% comp in June, can you give us a little bit of color on week-to-week trends and I guess how much the calendar shift and advertising adjustment that hurt the last week in May helped out the first week in June.
Kiley Rawlins
I’ll do my best to try and answer that, I think that as we’ve talked about June benefited from really two first of the months’, so the first of June as well as the first of July, similar to what we saw in last year. But as we’ve talked about the first of the month money last year, fell a little bit into the May period. It did not do that this year and so we saw a little bit of noise toward the end of the third quarter reflecting that shift.
As you also mentioned we, our promotional activity around the first of June also moved into the June period so there’s quite a bit of noise around the first of the month this year. You combine that with some of the beneficial weather we had last year when it finally got hot as well as the stimulus checks and the impact there, its pretty hard to get to a specific impact as it relates to just the first of the month.
I think as we’ve talked the first 12 weeks of the third quarter we were running closer to a 7% comp, obviously the last week had an impact on the overall quarter. There was probably I’d say a similar but probably less of an impact in June because you’re dealing with a larger dollar basis then you are in May and of course as we start to really cycle some of the stimulus checks, that creates some additional noise.
Charles Grom - JPMorgan
And just moving down the P&L a little bit, on the gross profit up 160 basis points in the third quarter, up 100 basis points in the second quarter, if I recall you’ve called out now the same three factors, shrink, freight, IMU in both periods, I’m just wondering which of those three helped you out a little bit more in the third quarter and I guess just why would that slow in the fourth quarter given that my understanding is that the IMU benefit should probably continue. So if you could maybe just flush it out for us, that would be great.
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