Paul Ruh: To answer quickly your Q1 question, Peter, and we included in our slide deck a slide that I think you will helpful as you model 2024 with all the puts and takes in the different quarters of 2023. You will see that Q1 has a number of items that are going to make the compares very challenging for us. So, it’s really about a unique event that happened last year. I talked, for example, about the inventory replenishment, but also the fact that we expect the season to continue to be below last year as we exit the winter, similar to what we have seen in Q4 of 2023. So, it’s a mix of unique items to what happened at Kenvue last year and a continued lower level of incidence in Q1, similar to what we saw in Q4. To your broader question about whether or not we are changing our philosophy, I would say our commitment to our long-term algorithm is stronger than ever.
Our commitment to deliver strong TSR through a 3% to 4% top line growth year over year, growing earnings faster than share and having a disciplined capital allocation strategy is what we started deploying in 2023. You are going to see, as we moved through 2024 and 2025 and also we become fully independent and exit our transition service agreements with Johnson & Johnson, you are going to see this long-term algorithm brought to life in a meaningful way. And that was always the plan to make sure that we exit our TSAs and reinvent our ways of working. So, we make it fit for purpose for our company, with ways of working that fit what we need to be successful as Kenvue, but also do it at a low base. And the combination of this lower cost base and the continued improvement in gross margin that we have demonstrated our ability to do for years, again in 2023, and we’re having to do it again in 2024.
This is what brings a fuel to bring more investment to our brands. There is no limit to our investment in our brands. We are very disciplined in our approach. We go for a return on investment approach. We believe that we have strong investable propositions in terms of building blocks and activities for 2024, as an example. And that’s why we feel confident that the higher investment that we mentioned will give us good results in 2024 and beyond.
Operator: Thank you. We have reached the end of our question-and-answer session. I would like to turn the floor back over to Thibaut Mongon for concluding remarks.
Thibaut Mongon: All right. So thank you all for participating on today’s call. 2023 was, as we talked about, a transformational for Kenvue. I think we have been very clear about our priorities for 2024, reaching more consumers, investing in our brands and foster a culture that rewards performance and impact. So we look forward to updating you throughout the year as we continue to advance these efforts. And for now, have a nice day. And thank you again.
Operator: Thank you. This concludes today’s conference call. We thank you for your participation. Have a wonderful day. You may disconnect your lines at this time.
