Budd Bugatch : And as you step back and think about that, and the surprise, is there any change in the structure of the industry? I know the industry has got some structural changes that are going on anyway. But in terms of where you think that the demand issue is, in terms of are there different types of mattresses that are winning share or something going on there, like we had for viscose back at the turn of the century or Bed In A Box starts to develop?
Iv Culp : Yeah, I don’t know. I don’t know that there’s anything dramatically, fundamentally different Budd. But we are, in our remarks, we did note that we are seeing unique growth opportunities in products and aren’t necessarily traditional fabric by the yard sale. So whether that be a fabric accessory product, or a cutting sewn cover that becomes a roll packed bed. And some of those unique opportunities don’t necessarily flex all of our North American assets. Now we have really strong manufacturing and sourcing capabilities worldwide. And that doesn’t in any way deter our positive nature. But it may be a little different, we may supply it a little different. And so maybe that’s fundamentally changed, but it’s not changing to impact our ability to attack the market.
There’s traditional players and e-commerce players and omni-channel players but we have a way through our fabric and cover manufacturing and sourcing platform to reach all of those. So confident with some normalized demand that we’re in really good position.
Budd Bugatch : Okay. And last two things for me. One, you talked about right sizing the business. Any idea as to how long that will take when you make those decisions. What’s the timeframe looking in that?
Iv Culp : Budd, we just don’t have time for that decision to be long. So if we said we just can’t tolerate further operating losses, our business is too good and too strong to be performing in this demand environment. So in the current demand environment, we have to make those changes quick. We want to do this ASAP, and we’re reviewing all possible actions, whether it be synergized operations, or a capacity reductions or cost management. But everything’s on the table, and we’re looking at it in the immediate near term.
Budd Bugatch : Got you. Okay, and is there a risk that you might cut too far?
Iv Culp : That’s something we always will think about. And I would love to have the problem of needing more capacity, we’ll find it. So I don’t anticipate cutting too far. And I do think that, as I was touching on are really strong manufacturing and sourcing capabilities that we have ways to react to any demand that might be in front of us. So I’m not worried about that. But we’ll be careful.
Budd Bugatch : And Ken, your inventory metrics look like they’re back to somewhat normal at pre-COVID levels in terms of days outstanding? Is that the right way to look at it? We don’t really have an over-inventory problem, at least not inside the company right now. Maybe some of our customers do, but the company doesn’t.
Ken Bowling : Yeah, I think that’s fair. I think both divisions have done, over the last year and a half a fantastic job of getting inventory in line with demand. And, again, we look at inventory, they look at inventory every day, we look at it every day. And we are committed to keeping that in line with demand. So right now, I think, Tommy, boy, I think we feel that we’re in line with what we expect to for the coming weeks and months.
Budd Bugatch : Okay, I’ll let others have a crack. Thank you very much for answering my questions. Good luck.
Ken Bowling : Thanks. Have a good day.
Operator: Next question comes from Anthony Lebiedzinski with Sidoti & Company. Please go ahead.
Anthony Lebiedzinski : Good morning, gentlemen. And thank you for taking the questions. And certainly, nice to see the balance sheet remaining strong. And certainly, great to see the sequential and year-over-year improvement in sales and operating metrics as well. So I guess, first and just the follow up as far as the question as far as the right sizing of the business and taking actions. So does your guidance for the fourth quarter, does that include any restructuring action? Or anything else? Or just wanted to get a better understanding of that?
Ken Bowling : No. And this is Ken, it does not. It does not. We’re as if said, we are in the middle of planning for that. But it does not include any of those actions, potential actions.
