We are seeing an environment where we think there will be less spot buys and so all of that will go into in terms of us progressively improving both our gross margin and our op margin. I think the other thing to keep in mind, too, is that, our pricing initiatives and actions really took hold in Q4 and we felt that especially on the MedSurg side. We will benefit from those actions for the full year in 2023. We will also see that’s not included in price. All the new products that Kevin talked about that we will launch, those come out at premium prices. So that will also benefit and help us with our op margin improvement. And then the last thing is, we still have some targeted restructurings that will take place in 2023, especially in the first half of 2023.
So we will also begin to feel the benefit of those in the second half. So I think Q1 is a little pressured year-over-year just because the inflation wasn’t sitting in last year’s op margin and it is sitting in 2023 op margin. But I think as the year progresses, we will continue to improve on that op margin, and obviously, that will drive to the EPS growth that we guided to.
Robbie Marcus: Really helpful. Congrats again. Thanks.
Kevin Lobo: Thank you.
Operator: Thank you. The next question comes from the line of Matthew O’Brien with Piper Sandler. You may proceed.
Matthew O’Brien: Good afternoon. Kevin, at the Analyst Day, when was it, this was a couple of years ago, you really exercised international. The performance in the quarter was phenomenal and it’s been really strong. I am just wondering the durability of that and should we think about international being not quite half of the growth on the topline this year, but something around that level. Is that how important international should be for you guys in 2023 and even beyond? Thank you.
Kevin Lobo: Yeah. Rather than thinking about what percentage of the growth is, is just how durable is it? Five years in a row now, organic sales growth has exceeded the U.S. organic sales growth, and of course, China has really didn’t contribute anything in 2022. So Europe was double-digit grower. It’s a growth engine for Stryker. I have talked about Europe for the last six years or seven years and we are hitting our stride in Europe. But even other emerging markets, whether it’s Latin America, whether it’s the Middle East, Eastern Europe, parts of East Asia, we have really started to hit our stride. It feels exciting. We have great leadership teams. We are getting great penetration now with Mako and fluorescence imaging, some of those power brands are now really starting to show up effectively.
So the way I’d like to think about it is that emerging markets should grow roughly double the growth rate of Stryker’s growth rate, and overall, we should continue to grow above the Stryker growth rate in these international markets. And as over time, if we don’t continue to have large acquisitions in the U.S. then that will become a bigger and bigger percentage of our business. But being acquisitive it’s still pretty small, if you think about 72% roughly of our sales are in the United States. But it’s starting to have a material impact and you saw really an outstanding quarter in Q4.
Matthew O’Brien: Got it. Thank you.
Operator: Thank you. Our next question comes from Vijay Kumar with Evercore. You may proceed.
Vijay Kumar: Hi, guys. Thanks for taking my question and congratulations on a really strong finish year. Kevin, maybe the first one on the performance here in the fourth quarter, at least organic, that’s quite outstanding. Sequentially, it looks like your growth accelerated by 350 basis points. Is this — can you put some — put those numbers in context for us? Is this share gains or is this your supply chain situation improving? And I am assuming there was some headwind from China, maybe if you could quantify it and just help us understand what went into that pretty stellar 13% number in the fourth quarter?
