Peter Arvan: Yeah. So the chemical sales growth that we saw, Andrew, as I mentioned, is a result of a couple of things. So it was a weather neutral quarter, which it’s been a long time since we have been able to say that it’s a weather-neutral quarter and we weren’t saying that it was extraordinary. Now was it hot in — was it hot in Texas? Yes. It was hot in Texas. But frankly, I have lived in Texas and Texas is hot every summer. So from a weather perspective, we would say neutral. I would tell you that we have been focused on our chemical business and we have been focused on providing our customers with a product offering that is second to none. And with technology tools that allows them to be — to frankly sell more chemicals and I think that bodes well for us, and we are participating and so I think our ability to take share on the chemical basis is evident within the quarter, and that, as you know, is a focus area for us.
So from a margin perspective, when you are talking about our private label and exclusive brands, remember on the chemical side, there’s three different parts of chemicals, right? You have the trichlor part of the business. Remember, we have always said it’s about a third, third, third. You have specialty, you have bouncers and then you have trichlor. On the trichlor, as Melanie mentioned, we did see some deflation on trichlor, but there was offset by some inflation on the other two areas. So, in general, it is margin accretive for us, but it really depends on the chemical trail that you are talking about.
Andrew Carter: Got it. Switching gears a little bit. I know you kind of talked a little bit in sales and not kind of putting a firm line in the sand. But as far as like EPS goes next year, do you have other drivers to grow EPS in a more tepid environment? I know this year has been a story about maintaining SG&A investment. Do you see a world where you can get more flex on SG&A? Do you see perhaps more meaningful gross margin increases, anything along those lines? Thank you.
Peter Arvan: Yeah. Again, too early to put together an outlook for next year. But if you think back about the themes that we have consistently discussed, that are going to have an impact on our EPS, right? One is we have a relentless focus on growth. Sometimes the market helps you in that area with — from a demand perspective, but this year, for instance, with new pool construction, it certainly was of no help. In times like that, we lead into other areas like our capacity creation, which is something, again, we didn’t just start this year, we didn’t start it last year, frankly, was something that was started pre-COVID and it’s a good thing we did because that allowed us to ramp up very quickly and handle the surge in business and the increase in activity without adding significant amounts of cost.
So from an EPS leverage perspective, obviously, in a business like ours, your biggest leverage points are going to be volume. So we have if we grow more then that certainly helps. Margin is an area too. As we mentioned, gross margin is something that is a focus area for us, it’s an area that we still see opportunity in, and of course, as I mentioned, capacity creation and SG&A leverage is something that we always work on. But at the same time, too, in order for us to provide a best-in-class customer experience in order to provide the best technology tools that requires some investment, too. So we tend to be very long-term focused on our investments and deliver it with where we are investing capital on recognizing that sometimes you spend money this year to reap rewards next year or the year after or the year after.
But I think if you look back historically on the investments that POOLCORP has made, that’s one of the things that has allowed us to continue to grow and to continue to expand the operating leverage.
