Anthony Lebiedzinski : Understood. Thanks for clarifying that. So there could be potential upside, I guess, I suppose. Okay. And then, you’ve done a nice job, certainly pricing products in line with costs. At this point, and kind of going forward, just curious to get your take as to what you’re saying, from a cost perspective, if you could just go over the various puts and takes in regards to your cost structure. And whether or not you think the pricing pieces that you’ve put in place, whether those are sustainable going forward?
Ken Bowling : Yeah, Anthony this is Ken. I think from a raw material standpoint, I think things are stable. And obviously, we’re monitoring that very carefully. I think, labor, that part of it, as far as demand that seems to be steady as well. So as far as being able to, first of all getting our costs, right, I think we feel good about that. We’ve got to deal with the variances, which we are, but as far as pricing. I mean, we’re working with our customers every day to make sure we have the right price for the right product.
Anthony Lebiedzinski : That’s great to hear. Okay. So you’re not getting significant pushback, I guess. In terms of, being able to pass that along. It sounds like you’re able to do that.
Ken Bowling : It’s not really I wouldn’t call it a — we’re not passing on prices on current items, generally. The new things that we’re developing our new products being developed with the right prices. We’re not overcharging, we’re just pricing things properly. Some of the things that we’re having to re merchandise Yeah, we either have to offer alternatives or adjust pricing, but that’s not a push back being Anthony. We’re not trying to drive our competitive price. We just are running a better business on new product.
Anthony Lebiedzinski : Okay. That sounds great. Okay. And then you also mentioned that your CapEx, you’re focusing on projects that increase efficiencies, improve quality, especially at CHF. So can you share any details in regards to that? And as far as when do you expect those projects to pay off for Culp?
Tommy Bruno: Hi, Anthony, it’s Tommy. Most of those projects are being implemented now and will come online in the middle to the end of Q4. And then we would expect to start seeing efficiencies from those as early as Q1 of 2025. And really start to see the majority of that benefit, probably starting in Q2 of 2025.
Anthony Lebiedzinski : Got you. And is it possible for you to like, share, give us some examples as to what you’re doing now? And how to think about the potential, say cost savings as you get more efficient?
Tommy Bruno : Yeah, I would say most of the projects that we’re doing are helping to eliminate waste of our chemical raw materials, as well as to measure and monitor our fabric formation. So we can price our goods accordingly. I would expect about a 2% improvement, and starting in the middle of 2025 in terms of our gross profit against those initiatives.
Anthony Lebiedzinski : Profit. That’s very helpful. Well, thank you very much. Best of luck, and I’ll pass it on to others.
Tommy Bruno : Anthony, thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Iv Culp for any closing remarks.
Iv Culp: Thank you very much, operator. And again, thank you to everyone for your participation and your interest in Culp. We look forward to updating you on our progress next quarter or before. Have a great day.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
