Mark Witkowski: Yes. I would say as we think about sourcing optimization and the benefits we saw there, definitely going into a year where we were reducing inventory pretty significantly, and you have seen our inventory come way down. We do have certain volume incentive tiers with suppliers, and we kind of think about it as getting spend into the most preferred programs and getting into the right buckets. And as we started the year, I think we had some concerns that we could really achieve all of the benefits there that our suppliers provide us just given the reductions in volume. But I think the – our sourcing teams have really done a great job of getting the spend in the right buckets, and that’s driven some better margin performance than we had anticipated.
David Ridley-Lane: Thank you very much.
Mark Witkowski: Alright. Thank you.
Operator: Our next question comes from Patrick Baumann from JPMorgan. Please go ahead.
Patrick Baumann: Hi. Thanks for taking my question. Sorry, I missed some of the call. But did you provide any update on kind of what you are seeing from a non-res perspective in terms of multifamily. I know that, that was the reason why you tweaked down your outlook, maybe that was a quarter ago from a top line perspective. So, wondering if you have an update on what you are seeing in terms of starts activity in specific verticals like multifamily?
Steve LeClair: Yes. Patrick, this is Steve. Yes. We definitely saw softness coming into Q3, and we saw it stabilize as we got into the back half of the quarter. So, multifamily was challenging as was warehousing, but really started to see some good growth in highways and projects. And so when we looked out across the whole spectrum that what we cover particularly if we look at some of these big mega projects, we really saw that stabilize towards the back half of the quarter, and we are pretty pleased with kind of how that came in.
Patrick Baumann: Okay. And then the ‘24 outlook there, you had – you described, I am just looking at notes that someone sent me it’s kind of flattish for non-res. Is that the way you are describing ‘24?
Mark Witkowski: Yes, I would say we provided a range of market for 2024, kind of saying flat to up low-single digit. I think on the low end of that, it’s probably down a little, on the high end of that is probably flattish in that range.
Patrick Baumann: That’s non-res? That’s total, I guess?
Mark Witkowski: Non-res. Overall market would be flat to up low-single digit.
Patrick Baumann: Got it. Thank you. Sorry for having to rehash that. And then in terms of – not to beat the dead horse on the gross margin dynamic, but – so 27% or so in 2022 and like year-to-date, similar to that has been the level that you have been able to achieve. So, you are still – so you are not ready to update kind of that 100 basis point to 150 basis point of drag. So, potentially – so we should, for lack of an update, kind of assume that, that is – that’s a reasonable base case to think about for gross margin in terms of drag from that? And then maybe some offset will come from your initiatives, but something down in the 100 basis points in terms of gross margin next year is kind of like reasonable base case, is that fair?
Mark Witkowski: Probably the way I would think about it is we have experienced some of that gross margin normalization in 2023, which we have been able to offset and we will experience some of that into 2024. So, it kind of gets split period-over-period. So, it’s probably not the full amount into 2024, but that’s the piece we do plan to provide, obviously, a lot more guidance on as we get into our full year release for ‘24. But that’s the way we are thinking about it right now is we definitely know we have experienced some of it, a lot of which we have been able to offset and likely to experience the balance of it in 2024, but it’s probably not a full year impact of it.
Patrick Baumann: Okay. That’s different than I interpreted it. So, I appreciate the color there. Thanks a lot and best of luck.
Steve LeClair: Sure. Alright. Thank you.
Operator: We have no further questions on the call. So, I will hand back to Steve LeClair for closing remarks.
Steve LeClair: Thank you all again for joining us today. It was a pleasure to have you on the call. Our consistent execution quarter-after-quarter is a result of the hard work of our branches and functional support teams, our focus on operational excellence, and the diversity of our products and end markets. We have more levers than ever for driving growth and profitability, the cash flow generation to capitalize on it and the team to execute on it. Thank you for your interest in Core & Main. Operator, that concludes our call.
Operator: Thank you all for joining today’s conference call. You may now disconnect your lines.
