Scott L. Thompson: Sure, I’ll start and then Bhaskar probably will enhance it and clean it up. I think the one thing that jumps to mind, it’s really a highlight for the quarter is the operational efficiencies that we’re beginning to flow through the financial statements. But the last few years were really a mess in operations because supply chain issues, commodity changes, an AX conversion, staffing issues. I mean, look, the operating team has done a great job in a very, very tough operating environment. Well, not all that’s kind of normalized and we’re back to focusing, like we used to do historically on driving efficiencies. We’re getting back on our metrics and this is really the first quarter that you’re beginning to see that in the margins.
So that’s an internal issue. And I’m optimistic that you’re going to continue to see that in 2024. I think you can also see one of the big highlights is the international sales group. As we’ve talked about this cube project, which again took a lot of energy from operations, and got them not caught off focus from an efficiency standpoint, we’re through that project. So I’m expecting some operating efficiencies internationally. Plus, the product is resonating in the marketplace. There was like a 12% growth, give or take Bhaskar for the international group. And think about that, this is high end product in the international market at a time of geopolitical complications, we’ll call it. So we’re thrilled. This is higher ASP product and it’s resonating.
We’d expect to get leverage in the international operation from sales. Bhaskar, what are the just off the top of your head on this.
Bhaskar Rao: No, I think all those are the right way to think about it. A number of growth initiatives to drive the top line, and then the operations or from a gross margin standpoint, we should see those tailwinds continue.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jason Haas with Bank of America. Your line is now open.
Jason Haas: Hey, good morning, and thanks for taking my question. Scott, in light of your comments to a previous question, I’m curious if you could say what you think is needed for the industry to get back to more normalized unit levels, do you think we need to see a pickup in industry advertising, do we need to see more housing turnover, is it just going to take time, what do you think is key to get there?
Scott L. Thompson: Yeah, I think we all fell in love with low funnel advertising. And some others pulled back on their advertising hoping to draft on other people. I think the bedding is an industry that you have to trigger the customer to think about. People don’t wake up one day and say let’s go buy a bunch of beds and the industry is very successful when it advertises. And so I think it’s primarily a lack of advertising by people and probably a little bit of a mixed fine tuning. I think I would also point to if you look at what Tempur Sealy has done, I mean, look, it’s not any secret. We’ve gathered a lot of market share and you can see that in our Stearns & Foster product where we’ve done higher than historical advertising dollars in there.
So we’ve proven that advertising works. Yeah, the product is great, sales team is great but you got to have the advertising in there. And so yeah, I think advertising is the key. You’ll hear retailers talk about traffic and that is the issue and everybody needs to get back to working a little bit on the top funnel and getting people in the funnel rather than waiting till the last minute grab them off their purchase journey at the end. Things like manufacturers slot mind are doing spiffs those kinds of dollar investments are all just fighting over the customers in the marketplace and aren’t productive. And they really aren’t something that Tempur Sealy is done. We’ve had some other manufacturers try to work that angle.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Seth Basham with Wedbush Securities. Your line is now open.
