Operator: Our next question comes from the line of William Reuter with Bank of America.
William Reuter: You were pretty helpful in one of the previous comments discussing how your lawn and garden customers are planning conservatively, but you expect that you should still have some better velocity later as the season goes on. In terms of the line reviews that were completed a couple of months ago, do you have a sense for how your shelf space may have changed at those?
John Walker: JD here. So, some lawn review decisions are still pending. But right now, as we track it, we track SKU store combinations or points of distribution. And our points of distribution year-over-year are flattish, pretty much dead even. But having said that, we feel good about the mix. So we’ve seen some slight decline in in private label and an increase for our branded products.
William Reuter: With regard to M&A, we’re clearly in an environment where near-term retailer destocking is impacting sales volumes. I would imagine that could lead to a lot of divergence the way people think that the your two sectors are going to evolve. Does that make it more difficult to get transactions done? And do you expect that this is a year that you may be less likely to have a larger acquisition?
Timothy Cofer: No, we don’t view it that way. And the way we view M&A is we’ll look at a company that we’re interested in based off its merit, not necessarily on the whims of kind of retailer sentiment at the moment. We’re in a very unique time right now where I think retail is trying to correct where it overcorrected with inventory levels and we’re trying to find an equilibrium level. But we’re still going to look for great companies that makes sense for us. And we want to do that obviously at a reasonable value. So, that’s not going to stop us from doing what we’re going to do.
Operator: Our next question comes from the line of Andrea Teixeira with J.P. Morgan.
Andrea Teixeira: Could you comment on the assumption for the category consumption? I think you embedded in your fiscal 2023, I think you alluded to low-single digit. And also, for the Q1 guidance, I think you obviously implying the $0.15 to $0.20 EPS loss in Q1 if I understood it correctly. You’re probably embedding some medium term destocking. Should we be thinking of the year starting in the first half being negative on the top line and then, potentially, as the season €“ as you pointed out, the season coming over, even though they probably will not carry the same level of inventories, potentially flat in the second half. And in terms of how you position your EPS, it seems as if you’re looking at some margin degradation for the year. Is that related to more investments in marketing related to the channel shift into ecommerce or you’re embedding some sort of deleveraging on the operational line and potentially the gross margin?
Timothy Cofer: I’ll try to rifle through those and touch on each of them and certainly speak with you afterwards as much as you’d like. I think on your first question, the expectations for category growth on the garden side, as JD mentioned and in previous comments, we always plan for a “normal” garden weather season. And I think that alone would suggest modest growth in the category for fiscal 2023, lapping the very difficult fiscal 2022. On the Pet side, I think we would expect low-single digit growth. In particular, we call out consumables will be better than durables. We have seen some real sluggishness and meaningful declines in durables this year at a category level and in our portfolio. And maybe as a reminder, Andrea, for you and others, our business skews very heavily to consumables, but maybe about 70/30 consumables/durables.
