So if we are lapping, high marketing spend through June, you can sort of 14 months from there is where we’ll stop having the particularly tough comparables on a year-over-year basis. So we can look at that and say, gosh, what builds the best P&L for 2024? And also how do we build the right muscles around improving marketing efficiency, which I’ve been extraordinarily pleased with our progress and pushing for faster payback and improving metrics up and down the P&L including gross margin and you can see revenue came down on a year-over-year basis, but gross margin came down less because we’re really doing a nice job controlling margin. So I’ll let Sergio speak to the specifics, but our overall goal really is to make sure that we emerge from 2023 with a healthy P&L and an incredibly healthy set of practices and metrics across the business that can drive sustained profitable growth.
And we think we’re putting the building blocks in place now. Sergio, if you want to speak specifically to the question of marketing investment.
Sergio Cervantes: Yeah, of course. And Dana, probably I will need some reminders as I answer the question. Okay. So first of all, I think the answer to your question is yes. So, one of the biggest impacts that we have seen and is a conscious decision as we move into the future per previous discussions is prioritizing profitability. So reducing the level of investment yes, it’s impacting, it’s impacting the growth that we have projected before and that we have put out as guidance for 2023. So the first answer to that question is yes. Second answer, which I believe you said is, so how much is coming from reducing marketing basically and how much is coming from other factors? I would say at this point, because I’m not going to digest it and clarify split specifically the question, but I’m going to tell you that the majority is coming from the reduction in advertising as you could imagine.
And the second part of that one is a slower retail environment that is not spacing at the level that we want it to be is still favorable. We’re still winning, but is not growing at the pace that we wanted it to grow. So that answers that part of the question. Can you remind me of the reminder?
Dana Telsey: The other one is just when you’re thinking about the retail expansion, what allows you to expand more or less, what’s the assessments of when — how you’re progressing forward with that, with the new businesses you just added?
Sergio Cervantes: Yes, so I’m going to take part of that question and Stu is going to compliment the answer. So basically as we, of course part of the strategy as Stu was describing, we have three levers for that growth and it’s pretty important for us to continue pushing for the growth. So we want to get the growth to expand the business and one of those opportunities is the retail environment that. So expanding retail, the decisions that come to the work to expand how to expand and how much to expand is basically is based on the decision of which are the big players, where are the chains that can give us the labor action, the return on investment the fastest, and where do we want to create long term partnerships? So those together with the assessment of volumes, the assessment of how they go to market, what type of businesses they carry in the different regions, that’s part of the assessment.
How much would that cost? And of course, at the beginning of each of those investments, you would imagine that we have impact in the profitability and as we go and grow in the different channels, we expect this to become profitable by having better leverage on the levers that we can pull by reducing the level of investment that is required at the beginning of each launch and also by having more awareness of our brand out there, but I’m going to leave also some space for Stu to answer this question.
