We’ll continue to pay off in 2024 as we spend more on marketing, rebranding and to realize the full potential for 2024. We’re learning as we go. We’re testing and learning. We’re gathering key customer insights. Our goal is to better inform our strategy to spend more carefully and in a more targeted manner. We see this talent becoming a larger portion of our business over time. We’ll be significant enough in 2024 that we’ll start reporting on it separately or giving more color separately. I don’t think so. I believe that there’s a competitive advantage to not doing so at this point as we’re trying to grow it, and we’re testing out different strategies. I would hope in the following years, it will be enough of a portion of our business that it would be meaningful to speak about.
Kevin Steinke: Okay. Thank you. And then a couple more here. the nice gross margin expansion that you had both year-over-year and sequentially, driven by branded products. You mentioned supply chain normalizing. I think, some favorable mix. But just trying to get a sense as to how sustainable these higher levels are or if you anticipate some quarter-to-quarter valuability. I know that can just kind of vary based on customer mix. But just any thoughts on the margin — gross margin profile going forward?
Michael Benstock: Sure, Kevin, as you said, there will be some variability in the margin mix, particularly in branded products where we’re really pricing on an order by order basis. We’re obviously very happy with the margins that we had in the third quarter, just given the mix of orders that we had in the branded product space, combined with we’re starting to see some of the, what I would call, lower supply chain cost inventory now coming through the system, particularly in that segment. So obviously, we — as we look ahead, we expect in the fourth quarter margins to still be up to last year, probably a little bit more consistent with the first part of the year than I would say the third quarter. That we’ll monitor the fourth quarter, as we talked about on the health care side as we work toward hitting the end of year inventory target may determine how more or less promotional we might need to be in the fourth quarter, that kind of plays into the range of guidance that we’ve given.
But we still expect good margins, again, as I said, probably more consistent with the first half of the year than I would say the third quarter margin.
Kevin Steinke: Okay. thanks for the color. And just lastly, just looking at the selling administrative expense line sequential increase there on an absolute basis. It looks like that was driven by branded products. Just wondering if there’s anything to call out there in terms of the increase in the expense base, if there’s something more nonrecurring in there or some investments or perhaps just trying to get some color on what’s going on there and what it might look like going forward.
Michael Benstock: Sure. In the case of branded products, a big portion of the increase really related to commissions. So in the branded products business, the commission is based on margins. So given the improvement in margin and the growth in margin despite sales being down single digit, really drove an increase in commission expense and therefore, a larger piece of SG&A for the third quarter.
Kevin Steinke: Okay. thanks for taking the question. I’ll jump back in the queue.
Operator: And our next question will come from Jim Sidoti with Sidoti & Company. Please go ahead.
Jim Sidoti: Hi, good morning or good afternoon and thanks for taking the questions. Just to follow up on the SG&A question. Can you talk about headcount? Are you – did you add salespeople in the third quarter? Or do you plan to add any more in the fourth quarter?
Michael Benstock: Are you speaking about a particular segment? Or are you thinking about overall for all SGC?
Jim Sidoti: I guess, primarily for branded products.
