We’ll continue to make progress and we will talk about that more specifically when we give guidance for next year, but we will continue to make progress and be working towards a level that is below 150 across a multi or rather below 140 across a multiyear time horizon. Next year, our progress will be balanced against some of our network changes. We are bringing online some new DCs next year and a new DC footprint altogether, so while we’ll make some progress next year, it will be balanced against some of the long-term decisions we’re making to improve service and costs in our DC footprint.
Operator: Thank you. Our next question comes from the line of Nigel Coe with Wolfe Research. Your line is now open.
Nigel Coe: Thanks. Good morning.
Donald Allan: Good morning.
Nigel Coe: I’ll try and make this question a bit punchier. Thanks, guys. And Chris, welcome. Good to hear you. So the EPS, $0.80 for, well, $0.80 roughly for 3Q midpoint. And so I think that implies 4Q down slightly, so just wondering how we should think about that gross margin cadence between 3Q and 4Q. I’d have thought that maybe some of the cost benefits would benefit 4Q more than 3Q. So just maybe just run through that. And then the comment about pricing flat to slightly negative, is that for the whole corporation, or is that just specifically for Tools & outdoor segment?
Patrick Hallinan: Yes, Nigel, I’d say all you’re seeing in 3Q EPS to 4Q is really just a normal seasonal cadence, right? We tend to ship in, in the third quarter a lot of the product that is sold through the holiday season, so it’s just a normal cadence that you would see from one quarter to the next. From a gross margin perspective, they’ll roughly be even across quarters, if not the fourth quarter being slightly higher, so the margin journey will be on the right momentum track. And all you’re seeing in EPS dollars is seasonality. I think, in terms of pricing, 85% of our business is Tools & Outdoor. And all you’re seeing in pricing is the fact that this year we’re back to a normal seasonal promotional cadence, especially around the Black Friday time frame, without new kind of gross price increases offsetting that introduction of — reintroduction, I should say, of a normal promotional cadence.
So it’s just the dynamic of us re-entering a normal promotional cadence that will potentially take us below flat pricing, but it should be a real small marginal amount. That’s all you’re seeing with both of those dynamics.
Donald Allan: And just a reminder recognizing that, as we launch new products at new price points throughout the year, the impact of the higher price versus the previous product that it’s replacing does not flow through that price line, but it does flow through your margins. So you don’t necessarily see the full impact of pricing decisions and processes that we have across the company because of that.
Operator: Thank you. Our next question comes from the line of Michael Rehaut with JPMorgan. Your line is now open.
Michael Rehaut: All right. Thanks. Good morning, everyone, and welcome, Chris. Wanted to dial in a little bit more into the change in your organic growth outlook for Tools & Outdoor. I think you kind of said it was driven by several different factors, softer outlook in outdoor, DIY weakness, channel inventory conservatism. I was hoping if you could kind of bucket those drivers in terms of what’s driving the difference, if you can kind of tie it to the difference, I guess, which is maybe 3% or 4% of a change. And also if the POS turning positive, that was kind of part of your prior guidance because you said it could be a potentially positive signal for the back half. If that continues, would that drive any upside to the guidance?
