Stephen Kim: Yeah, thanks a lot guys. Just a housekeeping point, when you talk about POS, are those numbers adjusted for the extra week? Or are they inclusive for the extra week? And then when you talk about the U.S. new construction market, I think you said down 18% to 22%, single-fam starts, down 25%. This might be a tough question, but I’m wondering what kind of mortgage rate assumption you’re sort of embedding in that outlook. And yeah, then I have a follow-up.
David Barry : Steve, this is Dave. I’ll handle both of those. So POS, no impact from the 53rd week, so that’s just kind of calendar year over calendar year, so that is adjusted out. It’s a clean comp on that. And then on your — on the housing starts, I mean we’re not forecasting much relief on the mortgage rate. So assuming the Fed continues with their actions this year and that mortgages stay somewhere in the 6%, if not north of 6% for the year. And so we’re — forecast is 25% down in starts, as you pointed out, and it’s a bit of an improvement from what we’ve seen in builder order patterns recently, right? So we are expecting that builders are either repricing or the consumer is kind of adjusting their expectations, and we’re getting to more of an equilibrium. So we got to get to improvement to get to the 25% down starts in the year, but we’re not expecting on a big mortgage rate change in that assumption.
Stephen Kim: Got you, yes. And that was kind of where I was going. I think you mentioned that POS in January was actually flat year-over-year. So it sounded like it was better than, obviously, the outlook that you’re laying out here. And so I guess, if you see, the industries see, let’s say, better results in 1Q and 2Q, would that be a benefit to you as soon as the back half of the year or even sooner? I was a little surprised to hear that POS improved in January because that was really just when we started to see housing doing a little bit better there, and you saw it like almost immediately. So I’m just kind of curious, what kind of a lag do you think we’re thinking about or we should be thinking about if housing does better than you think?
David Barry : Yes. And with our market forecast, Steve, and I’ll give you a little bit of context behind our market forecast. We’re actually, if you recall, we forecast our product consumption, right? And so we’re actually — single-family is getting worse from our standpoint as we move through the year because there is a, call it, three to six month lag, maybe a bit longer, given the completions backlog is going to move the declines that we saw last year and just translating into our product demand. Now I do think R&R will remain a bit of a wildcard. Though our market assumption, exit the year with R&R still down low single digits, I think if the consumer — if the economy, the general economy, gets to something of like a soft landing or consumer confidence is going to remain strong, maybe R&R has some upside to it, but we’re again not seeing that necessarily right now.
We did have a good month. There was decent POS in January, but one month isn’t making the quarter or the year, and there’s still some challenges ahead of us.
Stephen Kim: No doubt. Yes, okay. Great. That’s really helpful. Appreciate all the color here. Thanks guys.
Nicholas Fink : Sure.
Operator: Thank you. We reached the end of our question-and-answer session. And ladies and gentlemen, that does conclude today’s teleconference. You may now disconnect. We do thank you for your participation today.
