Philip Ng: Okay. That’s helpful. And then as you kind of alluded earlier, one of the larger paint assets are put on strategic review. It’s something by definition, you have to take a harder look at your partner on the retail side, obviously, on paint has made a huge investment in reaching the complex PRO. So is this something you’re putting a hard consideration and particularly on the store side, which is a little different from what you guys have done operationally on the business side. Would you look at it holistically or in parts, just any more color in terms of how you’re thinking about it?
Keith Allman: Sure. Yeah, that was certainly a significant acquisition for Home Depot. And I think that really illustrates their focus, which we’ve been teaming with them on the paint side with regards to the PRO, but they continue to be focused on the PRO, and that’s consistent with our strategy, and we continue to work very closely with them particularly in our paint business to go after that PRO. And when you look at our stacked comp over the last several years of some 60% in PRO paint, that’s indicative of not only the capability of our Behr brand and our service proposition, et cetera, but absolutely of our relationships and their focus on that PRO. So that’s key. With regards to the paint asset that we’re looking at, that could take any form.
It’s too early for us to get in — to get it now the process has just started, but we’re going to look at all aspects of it and we will be consistent with our capital allocation and our M&A strategy. And that may or may not involve various parts of the assets that are under review, and we’re taking a look at it. It’s too early to get into any of the specifics around the individual components of a potential deal that may or may not happen.
Philip Ng: Okay. That’s great color. Really appreciate Keith.
Operator: And your next question comes from the line of Garik Shmois from Loop Capital. Your line is open.
Garik Shmois: Hi thanks. Just wondering how you’re thinking about International Plumbing as the year progresses, maybe you have some easier comparisons throughout the year. Just wondering if you’re expecting that part of the business to show growth over the next several quarters.
Keith Allman: In terms of the overall international market, as I said, Garik, it’s lagging a little bit in terms of finding the trough, if you will, versus North America. So, we’re expecting the International market to be down low to mid-single-digits. Hansgrohe and that team there has done a phenomenal job and there’s no question, while it’s certainly difficult to pin down in a particular quarter, the size of the market when you’re in well over 100 countries. But clearly, we’re outperforming our major competition in Europe and continuing to gain share. So, we expect that to continue to happen. The business is performing very well. There is a little bit more signs of stability in Germany and Central Europe than we’re seeing in China. So, we think China is lagging a little bit. But we expect to continue to gain market share against the backdrop of International markets that will be down low to mid-single-digits.
Garik Shmois: Okay, that’s helpful. And then just with respect to commodity volatility. Just wondering how you’re thinking about pricing over the remainder of the year? You’re thinking about or have announced additional price increases to offset.
Keith Allman: Yes, we’ve had some price that we took last year and then I would say kind of targeted pricing this year in Plumbing, I’m talking specifically. It’s been a mixed bag as it relates to commodities in Plumbing. Container costs have decreased slightly, but are certainly elevated ongoing risk, as I talked about, in the East Coast port negotiations, the Red Sea, a number of other areas as it relates to freight. At quarter end, I think copper was up about 3% and from where it ended last year and is currently above $4 again. Zinc prices are starting to come up. So, there’s volatility there. I would remind you that in Plumbing due to the nature of products coming across the ocean and that the time it takes there and then going through our inventory. It takes about six months for a impact to be seen in our P&L. So, for Plumbing, we expect, let’s call it roughly flat commodities in 2024 all-in. Operator?
Operator: Your next question comes from the line of Keith Hughes from Truist. Your line is open.
Keith Hughes: Thank you. Similar question as the last one, but on — in the Paint business. What’s the outlook for inputs in the next couple of quarters there?
Rick Westenberg: Yes. Hey good morning Keith, it’s Rick. So, with regards to our — on the Paint side of the equation from a commodity standpoint, we saw some favorability in Q1 year-over-year is pretty modest, but really sequentially flat. And really for the year — for the calendar year, we don’t see a significant impact as of today with regards to commodities on a year-over-year basis in the Coatings business. As it was mentioned, we’ve seen some increase in oil prices, which obviously impacts resins. There’s some pressure in the TiO2. So good start to the year, but really stability and some potential upward pressures, but we’re monitoring it very closely.
Keith Hughes: Any upward pressures or may be later out in the year? It sounds like that’s a little more of a speculative.
Rick Westenberg: Yes, there’s a delay, obviously, as Keith’s alluded to, because it’s not an immediate impact. And so we’re — again, we’re monitoring it, but it’s not something that we currently in terms of our expectations for the year, we’re not baking in any significant benefit or headwind with regards to commodities for the year.
Keith Hughes: Okay. Thank you.
Operator: Your next question comes from the line of Sam Reid from Wells Fargo. Your line is open.
Sam Reid: Awesome. Thanks so much guys for taking my question. Actually I wanted to drill down a little bit more to start with on Plumbing, specifically Plumbing pricing. Can you talk maybe pricing strategy by channel and any differentials that you might be seeing, whether it’s in showrooms versus home centers versus distribution and wholesale. I just want to understand pricing dynamics in those channels that we should be aware of?
