Operator: Thank you. Our next question comes from the line of David Manthey with Baird. Your line is now open.
David Manthey: Thank you. Good afternoon everyone. Julian, in your remarks, you said that we may not see inflation next year, and of course, this industry has historically lacked discipline in softer environments. And I was just wondering, first of all, are you seeing any signs of intensification of shingle price competition in any of your markets today? And then second, if one or more of your competitors do decide to use price as a share gain tool, how do you balance your own Ambition 2025 growth and margin targets relative to a market that may only provide you an opportunity from one of those?
Julian Francis: So, the answer to the first question is no. We do not see any indication of that type of using price today. As Frank said a number of times in his prepared remarks, sequential price is positive. I continue to believe that the overall demand level in the market today, even with a slight decline next year that we are expecting is still at sort of higher levels than we were experiencing 5 years ago, sort of pre-pandemic. We expect overall activity to be higher than that. And that is a constructive market as far as we are concerned. That demand level doesn’t indicate to us that we would see everyone rushing out trying to create leverage either in the manufacturing base, which is generally where this would begin or in the distribution space either.
We think that this is overall a healthy market. It’s going to come down from what we would describe as elevated levels. But we still see that the overall demand, even if shingles would come down mid-single digits, you have still got a 145 something million square market, which is one of the better markets we have seen except for the past 2 years. So, we think the overall environment is conducive to more stable pricing. We don’t think we will see the inflation come through. We don’t see the inflation we would expect to see from sort of an asphalt coming through. We just think it’s a more stable environment coming in. If someone does go out there and start doing that, obviously, we are going to have to make sure that we are protecting our margins.
But our plan is built more on things that we can execute and are in our control versus responding to those market conditions. We believe that adding greenfields, driving productivity, focusing on a new pricing model that we believe can enhance margins going forward, focusing on increasing digital, focusing on increasing our private label are all margin-enhancing initiatives, and we can protect that overall going forward.
Operator: Our next question comes from the line of Keith Hughes with Truist. Your line is now open.
Keith Hughes: Thank you. A question on a couple of points on the closing thought slide, you talked about October sales up high-20s. You are looking for sales per day for the fourth quarter to be up 15% to 17% with the acquisition. But it shows some deceleration there. Could you talk about what you are kind of anticipating to sell at what segments?
Julian Francis: Well, I will start and I will let Frank give some detail. But remember, I mean last year’s fourth quarter was a banner fourth quarter. I mean it was. So, when we say it’s decelerating, I mean it’s off last year’s number, which was an incredibly strong fourth quarter. Obviously, last year, I can tell you exactly what winter did last year. I can’t tell you what it’s going to do this year. So, as our outlook looks at it, we are sort of forecasting what we believe would be an average rest of the year, if you like. The markets are pretty good right now. I mean we are seeing a little bit of a slowdown because it gets colder in the north, and that’s natural. We continue to see some markets that have been heavy new residential exposure.
