Stefanos Crist: I know it can be complicated with the macro and everything going on with inventory levels, but any expectations for working capital next year.
Nicholas Lahanas: We have plans in place. It’s nothing that we usually share with the Street. The only thing I would tell you at a very high level is we are going to aggressively convert inventory into cash. We are about $250 million over what we normally are. And the goal is to definitely convert that over into cash. So we’ll get more updates as sort of the year progresses. And again, we’re going to know a lot more once the garden season breaks in terms of that conversion rate.
Stefanos Crist: And you mentioned this on the call, maybe just a little more color, I would expect in a recessionary environment more of a shift towards private label. It sounds like that’s not happening. If you could just give us a little more color on what you’re seeing there between private label and your brands.
Timothy Cofer: We’re pleased that our brands continue to outperform private label. We’re keeping a very close eye on it for the exact reason that you stated. But through the fourth quarter, both in terms of our own internal sales €“ as you may know, the majority of our business is branded manufactured business. We also have some private label lines with key retailers. And so, when we look at our own internal sales data and the strength of our branded business versus private label, we see brands outperforming. And then when we look at syndicated data, like Nielsen and some online data that we have, we’re seeing at a category level, both for total pet and for total garden, brands are outperforming private label by a couple of points.
We are going to keep a close eye on that. It could be, as we go into fiscal 2023, there’s continued inflationary pressure, perhaps more tilted towards recession that consumers shift in their behavior. And certainly when you think about broadly in the marketplace, you do hear of other industries and categories where that’s taking place. But through the end of our fiscal, we still feel good about our branded performance. And obviously, for us, that’s good news. Those are generally higher margin propositions and obviously the source of what we think can be a sustainable competitive advantage.
Operator: Our next question comes from the line of Bill Chappell with Truist.
Bill Chappell: I want to dig a little bit more into Garden and kind of, I guess, several questions. But, one, I’m trying to understand kind of the overall weather impacts. I think 7% down in total, and I think that’s on sales. So, on volume, it’s probably even worse. There’s probably a bigger drop, I can remember, for the overall garden season. It certainly happened to certain categories in certain months, but it normally kind of evens out. So just trying to understand like, is this the new normal, where weather has much more of a of an impact? Are you expecting a normal bounce back in your guidance? Are you expecting a 50% bounce back? And obviously, it’s impossible to predict what March, April, May looks like for next year anyways?
I’m just trying to figure out how you’re seeing this versus maybe consumers coming out of the category that had come into the category during the pandemic that you’re kind of maybe €“ it could be cold weather, but really just have left the categories. So, any color of what you saw over the past year weather related and then how that’s playing into your forecast for 2023?
