Hopefully going forward, the amount that–the impact that will have on revenue will be less and less, but we’ll still be able to get some of that profit drive that you saw over the course of this year. Hopefully that gives you some directional answer to your question without specifics. I would say they’re both fairly meaningful in Q3.
Alec Legg: Got it, that’s pretty helpful. Then on the top line, so sales came in ahead of guidance. Was there anything that changed during the quarter that led to better top line sales in the quarter, and then also the narrowing of top line for the rest of the year?
Brian Grass: I’d say nothing specific. I’d say just strong execution, taking advantage of our opportunities. We mentioned–the two bright spots I would call out, and Noel will probably elaborate, is the areas where we leaned into from a marketing spend perspective. We really have leaned into Hydro Flask and drove good online sales there with free engraving and some other activities – you know, higher marketing spend and things like that, and then on Vicks, we really leaned into the cold-flu season and really driving sales online. I’d say those are two of the larger things that kind of drove slight over-performance in the quarter versus our expectations.
Noel Geoffroy: Yes, I called out in the prepared remarks, OXO was a real standout in the quarter if you take out the Bed, Bath and Beyond bankruptcy, really strong point-of-sale across the board, growing share in that core kitchen utensil segment, so OXO was a bright spot. Osprey continues to perform well. We continue to see the strong travel demand, better inventory position than we had a year ago, and really growth across all of the different portions of the business. Obviously there’s the tech path that is the heritage of the brand, but also nice growth in travel and duffle and lifestyle as we extend that brand across, and then I mentioned international was a bright spot, both with Braun and with Osprey.
Alec Legg: Thank you so much.
Noel Geoffroy: You’re welcome.
Operator: Our next question is from the line of Rupesh Parikh with Oppenheimer. Please proceed with your question.
Rupesh Parikh: Good morning, and thanks for taking my question. Also Julien, best of luck with your retirement.
Julien Mininberg: Thank you Rupesh.
Rupesh Parikh: Just to follow up on the last question on gross margin, Brian, I’m not sure if you can give any updated expectations for how you’re thinking about gross margins in Q4?
Brian Grass: I would say you could expect similar to Q3 with slight, maybe, expansion off of Q3.
Rupesh Parikh: Okay, that’s helpful. Then as we think about gross margins, you’re now in that 48%-plus range. Is that a fair base that you can build off of going forward? Is this the new steady state to think of, and then going forward, maybe there’s still opportunity for expansion from here?
Brian Grass: Well, I think it’s a fair base to build off of, assuming there is not significant exogenous changes in commodity or freight costs. Then yes, I think we build off of it with Pegasus savings that we’re expecting in fiscal ’25, which is largely cost of goods sold focused.
Noel Geoffroy: The only build I would have on that is you also get the brand portfolio classification benefit, so as we put more Invest to Grow sales into the mix, that’s also a help over time. Remember, now that we’ve classified them, as we put the incremental Pegasus investment, we’re going to focus it more on those brands that are in Invest to Grow, and those are the higher margin brands of the portfolio.
Brian Grass: Yes, that’s a good point – I would say for fiscal ’24, we actually sort of under-achieved on gross profit margin versus our expectations, because we weren’t able to achieve the mix that allows us–or to the degree that we would like, that Noel was talking about, and we do see the opportunity to do that in fiscal year ’25. I would say our base wasn’t quite where we wanted it to be for this fiscal year, but we feel like we can get it to where it needs to be going forward.
Rupesh Parikh: Great, and then I guess my follow-up question, as you look at the holiday season in terms of trends, if you look at November-December, just curious at the cadence of trends as you look at some of the POS data. Then from a promotional backdrop perspective, just curious how that played out versus your expectations.
Noel Geoffroy: Yes, so holiday performance for us, Rupesh, I would say broadly was in line with what we’re seeing in general consumer spending trends, so OXO and Osprey performed well, and that kind of matches the entertainment travel focus of where consumers are spending those discretionary dollars, more than other places. As mentioned, Hydro Flask performed well online and the hair tools performance was a little bit softer, but those are probably the parts of our portfolio that are most holiday exposed. We’ve obviously got the big illness portion of our portfolio that we touched on during the call today, so not everything is holiday relevant, if you will. What was the last part of your question, remind me, Rupesh?
