Keith Allman: I would tell you that the fundamentals and how we look at that market are still supportive of long-term growth for DIY, particularly the millennials. That’s a big cohort. They’re clearly influxing into the housing market. And we’ve seen, based on our basic research that they’re more than willing to pick up a paint brush and do their own painting. So, I think that’s a position that will bode well for us as our brand gains more and more traction and really a leadership position with those millennials when they look at the data that we see.
John Sznewajs: And the other thing I would point out, Garik, and I should have mentioned this earlier, to the extent that the economy does soften, you do tend to see a shift more towards DIY consumers take on projects, more projects themselves as opposed to have the projects done for them. So that could be a tailwind for us as we go into 2023.
Keith Allman: If you think about the pandemic and how that played out as it relates to a significant growth early in the pandemic with DIY, and then as that fear, if you will, of folks coming into your house abated as the pandemic was more under control, that shifted over to PRO growth. And I think the position that we have with our outstanding partnership with the Home Depot, in terms of being able to cover that variability in those shifts, our PRO business is very strong now. different shifts in the market and potentially different shifts from one part of that market, say DIY to PRO. We like our brand, and we like what our brand represents to both the end consumer as well as the professional.
Garik Shmois: No, great. Thanks for the color. On the pricing side, you mentioned you’re looking at some targeted price increases. I’m curious just given some of the softening in demand, are you seeing any pushback on pricing? Any impact on mix at all?
Keith Allman: Again, where we’re talking about our targeted price increases for 2023, it’s mainly in Plumbing. We’ve got some international price increases planned in some spots. I think we have some on certain parts of our assortment in North America. So that gives you a little bit of color. In terms of pushback, to-date, not really. I think it’s all about the price value relationship and the service that we bring, and our customers and channels are well aware of the costs that we’re experiencing, not only in the direct material front, but really, as I talked a little bit before referencing our paint basket, the way we ship our packaging, our freight costs, our labor costs, those sorts of things. So, I would say not any more pushback than you would normally see.
On the mix front, a little bit of trade down. Slight trade down in our Plumbing business we’ve seen in spots, but really nothing that I would call significant at all in ’22 and nor do we expect it in ’23. And that’s part of that similar to our coverage across DIY and PRO in paint as it relates to being able to address market swings. We also have broad assortments. And we cover price points, and we have styles and various technologies that fit for different people. So, we’re prepared for those kinds of changes if they come, but we’re really not anticipating very much mix shift at all.
John Sznewajs: And Garik, the one point that I would just add to Keith’s good comment is, as you think about price for ’23, the significant majority of price will be carryover price rather than newly implemented price in 2023. So, I just want to make sure that, that distinction is very clear to everyone.
Operator: Our final question today comes from Keith Hughes with Truist. Keith, please go ahead.
