Eric Tiziani: Susan, thanks for the question. So let me start by saying that in the fourth quarter, the sell-through was robust, and one third-party data source that we can point to is NPD, where in the U.S. retail and DTC market, Olaplex grew well ahead of the category. As we enter into our Q1 outlook, we see similar sell-through trends across the specialty retail — frankly, across channels. And I’ll just note here that because of the inventory rebalancing impacts that we’ve mentioned in both the fourth quarter of 2022 and the first quarter of 2023, our sell-through performance is actually materially better than the sell-in, the net sales declines that you’re seeing.
Susan Anderson: Great. And then maybe if you could talk about the performance of the dry shampoo. I know it’s probably early days, but just curious, any early reads there? And then also other new products you have planned for the rest of the year? And then I’m curious, can you talk about maybe just the dollar impact you expect in the sell-in for — from new products in 2023?
JuE Wong: Yes. Let me take that question. And I just want to preface, we don’t break down what we are selling in, in terms of launches. But what we can tell you is, our — every one of our launch is validated by trade data has been the #1 launch both in unit sales and dollar sales. So it was no different. Last year, No. 9 was indicated as a top revenue-generating SKU in terms of its launch for the haircare prestige category. We’ve just launched dry shampoo, as you have seen, at the end of February, early March, exclusively with one Specialty Retailer, but also with our Pro channel. And that is the #1 dry shampoo in every one of those channels that we are launched in. So you can tell, again, when we put out a launch, it generally is the best in class because the world doesn’t need another shampoo, doesn’t need another dry shampoo.
It has to deliver on what it says it does. And so we are very encouraged by the results, especially also by the — proven by the ranking Hopefully, that answers your question. I apologize that we can’t break it down for you as such as to what the sell-in is for the launch.
Susan Anderson: Yes, that’s helpful. That sounds really good. And then lastly, if I could just add. I’m curious, so the professional channel, the first quarter guide is obviously pretty much more of a decline than what we saw in the fourth quarter. I know you have the inventory rebalancing. How much of that $25 million is in the salon channel? And then also beyond that, I guess, what’s driving those worse expectations?
Eric Tiziani: Thank you. So we’re not breaking out the magnitude of the inventory rebalancing across Specialty Retail and Pro. But I will just say again consistently here that the sell-through that we’re seeing in the professional channel is better. The projection for that in the first quarter is better than the guide we’ve given on sell-in because of that inventory rebalancing. And it really is about all of the investments actions that JuE has mentioned throughout the call, some of which are directly focused on the professional channel and the Pro community. We expect those to take hold and they are taking hold now, but we expect them to have their fullest impact as the year progresses, and that’s why we’re calling out sequential improvement as the year progresses.
Operator: Our final questions will come from the line of Jonathan Keypour with Bank of America.
Jonathan Keypour: I guess I’m curious about — so there’s going to be this $25 million lap in 1Q, and there’s the $10 million in pipeline. So it just looks like if you back out, if you try to normalize what 1Q looks like, it’s still about a 23% to 25% decline, factoring in all of the seasonal kind of impacts. Is that sort of where we should think about the state of demand? Is that like basically down 25% is sort of what is happening to underlying demand? Is that sort of a fair magnitude, I guess?
