So, those two segments can tend to drive a little bit more performance toward the — again, the back half of the year. I would say that we wouldn’t anticipate to be as back-end weighted as it was this year, but back-end weighted nonetheless. Looking at the businesses and our guidance implicit in our guidance, our sales is sales growth across all three of our segments. I would say, for our Branded Products and Healthcare Apparel segments, our guidance assumes low single-digit growth. And then we would expect larger growth in our Contact Center segment anywhere from high single-digit to low teen growth. And you put that together and that kind of speaks again to the range that we just provided.
Kevin Steinke: Okay. Yes. Fair enough. That’s helpful. I was going to ask about the segment growth expectation, so I appreciate that. All right. So, again, I mean I just — so it doesn’t sound like you’re necessarily assuming some dramatic improvement in the demand environment, but it’s just kind of your regular cadence of new business ramping up. And if you mentioned strong pipelines. So, it sounds like you’re just kind of basing that outlook based on what you kind of see today and that should lead to a stronger second half of the year. Is that fair?
Michael Benstock: Yes, I’ll jump into — yes, that is fair, Kevin. Thanks, its Michael. I think we’re seeing more predictability than you’ve seen over the last few years, 2020 to 2023 were pretty crazy for us in 2020 to 2022, certainly because of the pandemic, but then 2023 with the overhang of inventory. We finally feel like we’ve gotten to a place where our results are more predictable. And we certainly are going to work really hard towards exceeding the expectations. But I think we’ve set the expectations pretty well where we believe things will land right now and are — have very high confidence in those expectations.
Kevin Steinke: Okay, great. And you mentioned the direct-to-consumer effort in Healthcare Apparel continue to be pleased with the results there. I don’t know any more color you can provide there? And I assume it’s still too small to really move the needle, but maybe any comments on just again, how that’s ramping and what you might expect in 2024?
Michael Benstock: So, I think what’s really exciting and I don’t have any hard data that I can share on this, but the awareness of our brand, Wink and Carhartt, which we’re a licensee of is much greater than it has been in the past as a result of a lot of our efforts. We’re making a huge marketing investment to support that. And so while it’s not a huge part of what we do, it’s getting bigger, and it’s not only helping the marketing efforts, not only helping the direct-to-consumer, but it’s helping us really across all the different channels that we’re selling. And you have the digital channels where we’re selling into Amazon and Walmart.com and so on, Target.com and many others and that’s been very helpful as well as selling to retailers, where I think we’re creating a demand for our products that we haven’t in the past.
And I’ve spoken about our marketing team in the past. I think they’re second and none. And I’m hoping that sometime in the not-too-distant future, we’ll be able to start reporting more on the results, and it will have a bigger impact on our Healthcare Apparel business than it has today.
Kevin Steinke: Okay, great. Lastly, I wanted to ask about gross margin. It was quite strong in 2023. I know you had some of the larger inventory write-down charges in 2022 that made that comparison a little easier. But even without that, those charges still some pretty healthy gross margin expansion. So, I’m just wondering if you could talk about what’s driving that and speak to the levels of sustainability and gross margin or opportunities for improvement or pullback or how you think that might trend going forward?
Mike Koempel: Sure Kevin. This is Mike. Yes, I think consistent with what we’ve mentioned in prior — at least the prior quarter, if not the previous two, we continue to see strong margins in the Branded Products segment. With sales down, we’ve been able to through pricing and customer mix as well as some favorability in supply chain costs to drive improved margins. You certainly see that happening again in the fourth quarter, margin rate in the Branded Products business is 35% as compared to about 31% the year before. I think as we look forward, we look to sustain those margins. We think there’s still a little bit of upside in the margin rate as we even get into 2024. But again, I think for the most part, certainly able to sustain that margin, which is implicit in our guidance.
And as we talked about, we’ve taken some measures in the Contact Center business with price changes that we made earlier this year, and we’ll continue to look for opportunities there where we can perhaps drive some rate improvement where we kind of took a step back this year. We’ll look to see how we can grow that margin in 2024.
