Tim Boyle : Well, clearly there has to be revenue enhancements. So, I mean that, we’re expecting that the investments we’re making during this period and even the prior year will be extended and will yield revenue growth. This is what’s going to be important to the business. We see the kinds of revenue growth that we’re excited about internationally. We need to get that kind of growth domestically as well. So, I’m confident that we can grow the operating margins back to those numbers. We’ve historically hit those numbers or greater as the company’s history, as a public company. We’ll have to be very mindful of our expenses, continue to manage those in a way that our investors are used to seeing us manage those.
Krista Zuber: And then just on the inventory basis, can you just give us a little sense of kind of what you’re seeing in the wholesale channels with your key wholesale partners and sort of the expectation of where you see inventory leveling out given all your plans for reorganization restructuring in fiscal ‘24.
Tim Boyle : Well, we saw significant conservatism in our wholesale partners purchasing patterns, not only in preparation for fall ‘24, but also in preparation for fall ‘20, for spring ‘24, where there was a lot of noise about PAS, et cetera. So, I think the purchasing is been made by our retail partners, excuse wholesale partners, has been on the conservative side. We’re prepared to help a bit with inventory that will be have available, but we’re not going to take risks on inventory to satisfy anything that they’ve forgotten to purchase or purchase them and conservatively. So, my expectations are that the inventories at retail will be quite produced and will be in a much healthier position.
Jim Swanson : And I think, Krista, just to put that in context, when we look at where retailers inventory levels are in the channel currently, this is specific to the US for the Columbia and the sore brands inventory, the channel’s actually down year on year. So, it gives you some sense for we believe it to be quite healthy despite the fact that retailers are being awfully cautious as, as Tim’s touched on.
Operator: The next question comes from Alex Perry with Bank of America. Please proceed.
Alex Perry : Hi, thanks for taking my question. I just wanted to ask about the overall promotional environment. I guess how should we think about the promo environment right now compared to last year? And then Jim, how do we square that away with your comments? That inventory seems to be in a much healthier place, compared to last year? Thank you.
Tim Boyle : Well, I can speak, the company’s promotional activities have moderated, certainly, as I said earlier in the e-com space. We can be in a better position with the brands held in our most visible environment. I would expect that as inventories moderate across the channel that you are going to see much less promotional activity. The question depends on the particular retailer and what their own financial, fiscal health is, but I think in general you will see less promotional activity.
Jim Swanson: And that’s by and large Alex, that was reflected in our outlook as well. As our inventory is cleaner, as the retailer’s inventory is clean, that’s more or less reflected I think in the front part of the year Q1. Certainly, they are working to clean up remaining inventory that’s coming out of fall season. There is some promotions out there. But as Tim touched on, increasingly as we go throughout the year and that further normalizes and it’s healthy, that should be a net positive to how we are thinking about gross margin.
Operator: The next question comes from Mauricio Serna with UBS. Please proceed. Please proceed.
Mauricio Serna: Great. Good afternoon. Thanks for taking our question. Maybe just thinking about the sales guidance from that 2% to 4% decline, what does that imply or the underlying growth of the outdoor category? Any difference that you are seeing between apparel and footwear? And maybe, is there like any impact that you could attribute to your efforts or your initiatives to reduce the PFAS product that is talking that’s happening because of that?
Jim Swanson: Yes. Our basic underlying products have not changed. We have merely changed the chemistry that’s applied to the product to a chemical that has equal performance, but no PFAS. I think there is frankly some moderation in demand on outdoor products, certainly in U.S. So, we are seeing that, but at the end of the day, balance sheet matters. When there is a moderation in the terms of total demand that’s going to impact less financially capable companies more quickly than it will us.
Mauricio Serna: Got it. And then just a quick follow-up on the gross margin. I see like the cadence is like some 70 basis point to 110 basis point expansion first quarter. And then the first half is like slightly up. So, I guess that implies some contraction in the second quarter. Just wanted to understand what’s behind that. And very lastly, two quick follow-up on the temporary outlet stores. I mean, how does that work in terms of like, how long are they supposed to be open, given they are called temporary and shouldn’t those impact your gross margin because of, I guess, like they tend to be more promotional? Thanks.
