Robert Kay: The offsetting, I’ll let Larry comment, but the offsetting factors are — if you look at — remember, we bought back at a discount some of the Term Loan B, about $50 million almost fairly recently. And we’re also — in conjunction with this, repaying another almost $50 million. So the outstanding of the Term Loan B has much declined, but the interest rate is higher.
Laurence Winoker : Yes. As Rob said, the amount we’ve calculated approximately 2.5 million, which is pretty close position, which is pretty close to what we saved when we did that — the auction back in June.
Robert Kay: So higher overall interest expense, but we downsized the amount of the indebtedness on the Term Loan B, so they kind of [indiscernible].
Linda Bolton-Weiser: Okay. Thank you very much. Good luck with everything.
Operator: Our next question comes from the line of Anthony Lebiedzinski with Sidoti & Company.
Anthony Lebiedzinski : Nice job. Certainly, it’s nice to see U.S. sales growth in the quarter here. So just curious, as we look at pricing versus unit volumes, anything to call out there? Or just curious if you have any thoughts on that?
Robert Kay: Yes. Look, I mean, the inflationary environment is impacted, right? The — and helped from the sense of you’re getting higher sales on a same volume basis. But for us, mix has more of an impact of that. So like Larry mentioned, we had a big program in the third quarter in club, right? So that helped volume mix — hurt margin. But for year-to-date in club, we’re down, which helps margin percent, right, but hurts volume.
Anthony Lebiedzinski : Understood. Okay. Got you. Okay. So if we were to use the midpoint of your updated ’23 sales guidance. So the implied guidance of the fourth quarter is revenue decline of 5% from last year. So is that really all international that is driving that down?
Robert Kay: No. Actually, Anthony, it’s club. So we had a big program in fourth quarter of last year, which we’re not doing this year. And that’s really driving that.
Anthony Lebiedzinski : Okay. Got you. Got it. Okay. And then just curious as far as the International segment. So obviously, sales were down here in the quarter, as you explained. Strategically and kind of longer term, how do you think about the potential for the International segment? I mean this quarter, admittedly, it was not the first time that you had some challenges there. So how do you guys think about this on the International segment longer term?
Robert Kay: That’s a very pertinent question. Look, it’s been a drag on our earnings as we’ve grown tremendously over — since we really took over the business. And we’ve restructured it. We put it in a position, then it’s heavily dependent on the U.K., Brexit had a major impact along with the war on Ukraine and many other factors. So we’ve continued to restructure that. Ultimately, we need to be comfortable. So the potential is there. The growth is probably 1 of our greatest growth opportunities, and we are gaining traction. I mentioned some of the retail gains, I mentioned what we’re doing in Australia and New Zealand and other places, and we’re winning on the continent. So we are gaining share in a very depressed market. We need to be very firmly comfortable in our path and obtaining long-term profitability or we need to take other actions.
Anthony Lebiedzinski : Okay. Understood. Okay. And then lastly, gross margin, nice improvement there. Just curious as to whether we should expect additional improvements in gross margins here going forward?
Robert Kay: No. Look, we’ve improved our gross margin profile meaningfully over the last few years. We’re comfortable sustainable, but we don’t see — and it will still bump because of channel mix or anything else over any given quarter. But we don’t expect a continuing upward trend in gross margin percent.
Operator: And our next question comes from the line of Brian McNamara with Canaccord Genuity.
