Chris Peterson: Yes. Thanks, Lauren. So we are having active discussions with retailers on this topic. As we said in our prepared remarks today, our input costs, we are expecting to go up in ’24, not down. So we are not seeing broadly deflation in terms of our input costs. That being said, what we have baked into our guidance is a low single-digit inflation rate. That’s really driven by three things, which is labor cost, a little bit of transportation inflation and a little bit of resin inflation. It’s a more normalized inflationary input cost inflationary period. And so as we’ve had discussions with retailers on this topic, I think they understand that our businesses are not ones that we’re seeing deflation. And so we’re not planning any significant price reductions or rollbacks as we go forward.
And we’re not seeing that really in the competitive environment of what we compete in either. I think there are other parts of general merchandise where that may be the case, but not in the categories in which we compete.
Lauren Lieberman: Okay. Great. And then I know you said that you mentioned there’s just new leadership for Outdoor, but it might be a wait and see might be the answer, I guess. But just curious kind of what’s been going on there? The sales have been very weak. Just curious kind of anything you can articulate about steps being taken to turning the business around? Kind of why those sight there. But again, I understand if it’s a wait and see, because we just announced management change too?
Chris Peterson: Yes. So the Outdoor & Rec business is our — is the business that’s the most in need of a turnaround of any of our segments. So when we did the capability assessment, it became very clear that because each of our businesses in the past were not managed consistently, and we’re putting in those consistent processes now. They all started from different starting points. And so if you look at where the businesses are on the journey, Outdoor & Rec has the furthest to go with regard to improving its ability to innovate, brand build, brands communicate and drive retail excellence. The additional thing I would say on that business is that, that was the business that had more of their business, particularly in the U.S., and opening price point categories that were structurally challenged.
And so we have taken significant action in Outdoor & Rec. I’m very excited about the category in the long-term, because I believe that it is a category that we can drive significant growth. It’s responsive to innovation and all of the capabilities we are building should be applicable in that business. In order to drive that, we haven’t just brought in a new leader of Outdoor & Recreation, but we’ve effectively brought in a completely new marketing team, a new sales leader, a new CFO, and we’ve announced we’re moving the business from Chicago to Atlanta. And so we are making a significant intervention to upgrade that business. I do think if you look within the segments, and obviously, we don’t provide guidance at the segment level. I would expect the Outdoor & Rec turnaround from core sales decline to core sales growth to take longer than what you’re going to see in Learning & Development or in Home & Commercial.
And so, but I do expect already some improvement in ’24 relative to the growth rate versus ’23 in Outdoor & Rec, but it will likely be a laggard relative to the other two segments because of the amount of capability improvement work that we have going on in that segment.
Lauren Lieberman: Okay. Great. Thank you so much.
Operator: And our next question comes from Andrea Teixeira of JPMorgan.
Andrea Teixeira: Thank you. Good morning. I was hoping if you can comment in terms of how conservative you have been, I understand as you start up this guide, right, and how understandably what has happened every quarter last year, you had to reduce guidance, but also thinking about the category, you just spoke about some of the Outdoor, but maybe what are your expectations of the core categories going forward? Be it obviously Writing & Appliances. Some of that. And also some of the Commercial segments where there is some resilience there, I understand, anything that you can share as far as you look through more of the top line now that kind of the cost section of it seems to be more under control. In particular, as you were saying, we are benchmarking market share performance and new leadership in terms of getting this category sorted out in market share.
If you can kind of give us the state of the union for these other key categories that will be wonderful? Thank you, Chris.
