Brian McNamara: Good morning, guys. Thanks for taking the questions. Congrats on the very good results. Mark, I think consumer companies that are looking to go public could take the SharkNinja playbook given your guys success in arguably a very tough category. The company has obviously been very successful since you debuted last July. I’m curious, what was your philosophy in terms of expectations management when you went public? And does anything change now with a permanent CFO, and Patraic in place? Thanks.
Mark Barrocas: Yes. Look, Brian, I mean, we’re just playing the playbook we’ve done for the last 16 years. I mean, this company has had different chapters. I mean, it had a long chapter of Mark and I owning the business. It had chapter of us with investors. It had a chapter of us in Hong Kong and going public last July, which is kind of the next chapter of the business. I mean, the underlying kind of operating of the business, those are the same mission, same pillars that we worked on for the last 16 years. I mean, the business is about positively impacting people’s lives every day in every home around the world. We do that through taking these proprietary insights that we have and turning them into disruptive innovation that solves consumer problems.
We’ve continued to keep working on driving efficiency in our global supply chain. We think that our ability to story tell and to get the consumer to really understand the problems that we’re solving and create consumer demand through social media and TV and experiential events, we’re really connecting and engaging with our consumers. And we think that we’ve created a really dominant omni-channel strategy of brick-and-mortar and dotcom and direct-to-consumer to enable the consumer to buy our products whenever or wherever they want. And so I mean, all of that is the same. And I think, if we just keep playing that same playbook and we keep getting better and better at it as a leadership team and as a company overall, hopefully, the consumer responds by buying more products from us and buying across brands and buying across categories and expanding it into more markets.
And we’ll kind of let the market decide how that all rolls up from a stock performance perspective.
Operator: Next question comes from the line of Rennie Pan with UBS. Your line is open.
Rennie Pan: Hi, congrats on the strong result. This is Rennie from UBS. My question is on the — on your Cleaning Appliances segment. It has accelerated and it’s been positive in this quarter. And if we — but if we exclude the extractor and the robotic categories that the regular vacuum cleaner still generated positive growth. And since this is a core category, I would like to understand your views on the category outlook for full year 2024?
Mark Barrocas: Yes. So, Rennie, if you strip out kind of the impact of extractor and you kind of look at our total global vacuum business, it was up a few percent. So, yes, we’ve seen positive growth in a market that is down. So, we believe we’ve continued to take share in that category. I think, as we look at the full year outlook, I think we will continue to accelerate the Cleaning category. We’ve got a lot of new products that are launching in Cleaning over the course of the next couple of months. As we continue to keep penetrating more into certain global markets and getting more retail replacement in places like Germany and France and other European countries, I think that that will continue to help the Cleaning category. So, overall, I’m bullish that we’ll continue to see some acceleration as we go through the year in the overall Cleaning category.
Rennie Pan: Thank you. And also, would like to understand your views on the gross margin. It’s been very strong this quarter. Are you comfortable with that? And since there is some very promotional environment, what’s your view into the, like second quarter or into the second half of this year? Thank you.
Mark Barrocas: Yes. Well, look, I mean, we need to deliver — let’s go back. I mean, we need to deliver compelling, disruptive innovation with great quality, and we need to do it at an extraordinary value to the consumer. And so, we always got to keep that quotient in mind as we’re thinking about pricing and we’re thinking about gross margin. And I think we’re working hard to kind of find that right balance and make sure that consumers really feel that they’re getting great value when they buy a Shark or a Ninja product. As you said, I mean the market is promotional. But I think when you look at a business that’s investing over 6% of sales in R&D and over 9% of sales in marketing, I think we’re creating, unique products, and I think we’re creating lots of great demand for those products.
I mean, I think our cooler is a great example about the Ninja FrostVault. I mean, I think we found a real consumer problem and we developed a really disruptive product to solve that problem. I think the marketing and the social media that we put out there really connected and engaged and resonated with consumers as they started seeing it. I think that the business really drove through our direct-to-consumer channels and through some of our retail partners. And I think that when consumers got the product in home, they felt that it was really priced right and it was at a good value maybe versus other premium competitive cooler companies in the market. So, I think if we get all of those quotients right of innovation and compelling message and omni-channel and we do it at the right price, I think we’ll kind of find that right balance in from a gross margin standpoint.
Operator: And we do have our last question, comes from the line of Megan Alexander with Morgan Stanley. Your line is open.
Megan Alexander: Hi, good morning. Thanks for squeezing me in. I wanted to just come back to the restocking conversation. I think it’s a little bit confusing and everyone’s just trying to understand the dynamics, not just for your categories, but a lot of categories that saw this. So maybe just a clarification than a question. So to clarify, it does seem like the factories shipped ahead of POS and 1Q was really more a function of where you ended the year and seeing kind of replenishment carryover into 1Q from the holiday season as opposed to kind of lapping over an easy compare on the destocking last year. So, I guess clarification would be, is that fair? And then the question would just be, is the better way to think about it perhaps where are your weeks of supply at retail fit today versus maybe what is normal?
Just trying to understand whether, as we get to the back half and you’re going to be lapping a pretty large gap in POS than shipments, if the easy compare — if it is an easy compare or it’s really more about kind of how your weeks of supply look and not so much a year-over-year conversation? Hopefully, that makes sense. Thank you.
