Greg Maffei: I think we feel really good about kind of where we’re going to be from product margins and overall gross margins in the fourth quarter. When you look — I mean, there’s a couple of elements to that, right? One, we had — we were highly promotional as we were clearing inventory last year. And so you kind of deflated margins associated with that. We were still working through high detention [ph] costs, high ocean freight rates. And so as you’ve seen those things come down from a fulfillment perspective, we still feel really good, even though there’s going to be like-for-like promotional activity in the quarter. We still feel really good about kind of the trajectory of where gross margin is at relative to where we were this year and should continue to see kind of year-over-year build there.
Carla Casella: That’s great. So year-over-year but probably not quarter-over-quarter. Is that for most retail IC?
Greg Maffei: I think depending on — because of the last year being anomaly, I think you’re looking at pretty close there
Carla Casella: And then one last question. The cost reductions, a lot of it seems to be you’re taking out the excess freight. But I’m wondering just the sustainability of them. And then can you scale these even if we don’t see tremendous revenue gains but just the stability, can you — is there other further cost reduction opportunities?
Greg Maffei: Bob is going to let me take that one, right? I think when you look at — I mean when you look at kind of where we are on cost, we feel really good about the progress today, right? It took some time to get kind of some of this through the system, right? When you look at the supply chain cost of kind of retention to mirrors, ocean freight, all that stuff. — right, kind of coming down to get to what we would call a normalized level. When you look at everything else in terms of a cost to serve, I mean we’re — part of Athens is kind of continuous improvement and we look at lowering our cost per unit from a fulfillment perspective. how do we think about customer acquisition costs. We feel good about the ability to continue to maintain kind of strong OIBDA margin growth. We know that it’s a challenged top line environment and that’s a key focus for us but that was a lot of the work that we’ve been doing and continue to do with Athens.
David Rawlinson: I’d say a couple of things. One, some of the cost work that we’re doing in some of the international markets, you haven’t had an opportunity to really see those show up yet because they layered in more as sort of 2024 actions. And I’d say there are discrete places where because of the delay, some of the work we’ve done hasn’t quite shown up in the numbers. And so that’s a bit of a — the other thing I’d say is a lot of our work is not just cost reduction. I think of it more as efficiency increases. And so I think there are a number of places in the business where we can continue to get more efficient. And in fact, we have a number of places that we are working on now where we can get more efficient. And then finally, we do have some pretty exceptional onetime costs that have been headwinds this year that are not there next year.
We have Athens transformation costs that include some things like third-party and consulting fees that don’t repeat. We had the sale of leaseback rents that will cycle next year. And so we do have both some opportunities to continue leaning into efficiency. — and some cost type actions that haven’t shown up in the numbers yet. And we have some tailwinds from costs that will fall out as we go into 2024.