Operator: Our next question comes from Jon Anderson with William Blair.
Jon Andersen: Congratulations on the quarter. I have a quick two part question. First on pricing, pricing has been a pretty consistent contributor to the business of about 20% or so in fiscal ’23. It’s running about 20% through the first half of fiscal ’24. Do you think price mix continues at that kind of level? And what is driving that? Is it a big mix element? Is it list price increases? Just trying to get a sense for how much room you have for that to continue? And then the second question is on the marketing and digital. The full year outlook implies, I guess, that you’d be spending in the second half at kind of a high 20s rate, 28% of sales or so. And I think that would be kind of a record level for the company. Do you have the plans in place already on how that will be spent? And can you talk a little bit about whether it’s more of kind of the same type of vehicles or whether there is kind of another big game consideration in there as well?
Mandy Fields: Right. All right. Jon. So from a pricing standpoint, I’d just give you a little bit of history on how we’ve approached pricing. We’ve really only taken to price increases in our history. The first was in 2019 in response to tariffs. And the last 1 was in 2022 in response to the inflationary environment. So largely, what you’re seeing from price standpoint, when I talk about 56 points driven by volume and the remainder driven by price, that’s largely mix. And that really speaks to the innovation that we’ve introduced more recently. We have items like our Power Group Primer and our Cordless [indiscernible] Primer and our Halo Glow ranging from $10 to $14 but still very much resonating with our consumers. And so that is really what’s influencing that pricing piece. More so on the mix side, we actually did not take any pricing here in the U.S. in fiscal ’24. And so that the mix is really what’s driving that increase that you’re seeing.
Tarang Amin: And on the marketing front, Jon, we feel great about what we’re going to invest that money in. It’s a combination of that have worked, particularly in our digital advertising, our broader awareness efforts. Many of these game-changing collaborations, the 1 we just did this last quarter with Jennifer Coolidge on dirty pillows, I think we got something like 11 billion impressions on sold out of the product right away. We’re going to have to get more the holiday time. So you’re going to continue to see that, and we feel good about where we’re going to put that money against and including in some of the new areas I talked about in terms of continue to ramp up skin care awareness, Naturium, international. So we have plenty of good places to put that money and continue to see exceptionally strong ROIs.
Mandy Fields: Sorry, just circle back. Sorry, just I want to circle back on the pricing piece as well on the international piece. I said we did not take in fiscal ’24 here in the U.S., but there was a small 1 that we did take internationally that actually is kicking off here in October.
Tarang Amin: And that pricing internationally is just really to align prices between the U.S. and International. We have taken pricing here early last year and early ’22. We had not take pricing down in international just given when we take the last international price increase. So it’s really just to harmonize our pricing structure globally.
Operator: Our next question comes from Oliver Chen with PB Callen.
Oliver Chen: You’ve had really great results. Congrats. On the cosmetic side, what do you think it will take for you to get to #1 market share? What are the bigger opportunities as you think about product or channel as you scope it out in your strat plans? Second, on skin care, how are you thinking about Hero products and and contrasting that with what you’ve done in cosmetics or not, given that it’s a category with efficacy and different kinds of dynamics? Third and finally, international has been a big opportunity in the past as well, like earlier and your development. What’s different now about how you’re approaching it. It seems to be really working. Just would love some thoughts on that, too.
