So overall, I feel good about the gross margin outlook. And those are a couple of other things that are I guess, on the one hand, normalizing, on the other hand, we’ll – I think we’ll hopefully, as David said, as we cycle through the footwear market, we’ll start to see, hopefully, a turnaround in terms of the manufacturing absorption.
Randy Konik: Very helpful, thanks guys.
Sondra Lennon: Thanks, Randy. Operator, next questions, please.
Operator: We will now take our next question from Megan Alexander from Morgan Stanley. Megan your line is now open, please go ahead.
Megan Alexander: Hi. Thanks very much. Maybe if I could just follow-up on that last question from Randy, can you maybe talk about, in the third quarter where gross margin came in relative to your expectations? And then I guess, more broadly, the 3Q number was relatively in line with 3Q 2019 was. So as we think about next year, is 2019 the right base to think about or Sean, to your point, are some of the pressures you’re seeing in footwear this year perhaps transitory and you maybe can recapture them next year? So 2019 maybe not the right base to think about?
David Maher: Yes. Megan, I’ll comment on sort of the look back to 2019. Certainly, from a product launch cadence standpoint, I think, 2023 versus 2019 is a fair comp. Remember, right, 2024, we get into even year, and that changes our launch profile. We launched AVX and performance models. We’ll launch a new driver. So always even-to-even is a better look back and odds to odds are a better look back. But in terms of the flow of product and the cadence of product, I think, that’s the right way to think about it. The wildcard, as you well know, is the business is just a lot bigger, which is changing. Our margin profile changes to how we spend, there’s little bit of shift to when we spend. But by and large, in terms of pointing to what’s the right way to think about the business on a go forward. I do like the even-to-even comparison with the understanding that you do have to kind of park what happened in 2021 and 2022 aside.
Sean Sullivan: Yes. And then Megan, just in terms of gross margin for the quarter, I mean, it was generally in line with expectations. I think we expected strong performance from balls and clubs and the contribution. We knew we had some offsets in the FootJoy category. I think one of the things I didn’t really comment on in Randy’s question was raw material pricing. I think we’ve seen normalization there, some moderation across the board. So we, really, really have good visibility to raw materials, primarily in our ball and clubs business. So all in all, gross margin for the quarter was in line with our expectation.
Megan Alexander: Okay, thank you. That’s helpful. And then maybe can you just probably give an update on retail inventory. You mentioned footwear again. I guess, how does that look relative to last quarter? And would you expect that to kind of work itself out in the fourth quarter? Or could that perhaps bleed into next year?
David Maher: So, I’ll just caveat this by saying we’re at a seasonally low point in time in the golf industry, right? It’s November and a lot of the retailers, a lot of our golf courses have closed or will soon close. So we’re at a seasonal low. I would characterize inventories broadly as generally healthy and within the range of normal, which we feel good about heading into the holiday and next year. The one outlier we’ve called out has been footwear. And the way we think about that, I would say it’s probably 10% to 15% heavier than where it should be. And again, keep in mind, I’m speaking about broader channels, not just our footwear business, but global inventories across channels. So if I look at it as being 10% to 15% heavier than what it maybe, should be, it might have been 15% to 20% heavier three, four months ago.
