Scott L. Thompson: Yeah. So, thank you for that direct question because it’s actually a great story. As you may know, the UK market is really tough. I mean, the UK market from a retail standpoint for durable goods and home is a very tough market and maybe one of the toughest that we’re experiencing around the world. And the Dreams team has done a fabulous job. They actually had growth in sales in the quarter, which is what I just told you, it should indicate they had significant market share gains, that continue to be able to hit their acquisition EBITDA budget. And the team has done it with outstanding execution. So on the product standpoint, there’s new products coming into the UK, they actually do not have the new Tempur project.
They are the only major market that doesn’t have it, because there’s some special fire retardant requirements in the UK. So it takes a little, that was the last on it. So they’ll actually start gearing up in the first part of next year for what I call the new Tempur beds. They’ve got some other new products coming. They make a good bit of their own product, their own plant. But they’re still dealing with a tough market but boy, they have really done which from a Harvard Business Study you would want people to do, which is in a tough market really solidify their competitive position. And outside of Dreams, the new product is resonating with the consumer. And we saw a nice growth outside of Dreams as well, in a very tough market.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Laura Champine with Loop Capital. Your line is now open.
Laura Champine: Thanks for taking my question. And I appreciate the commentary that Mattress Firm has met your internal expectations but not being privy to those. Can you just give us a sense of how they’re tracking versus the industry, which I think you commented that Tempur believes the mattress industry was down low double-digits in the quarter?
Scott L. Thompson: Yeah, let me put some words around it but appreciate that. I’m also trying to respect my future partners. But look, I would say — I guess I could say these words, Mattress Firm has performed — the industry has been worse than we expected, that’s very clear from our previous comment. And Mattress Firm actually has performed better than we would have expected in this particular U.S. economy. I think that probably helps reconcile you to what you’re trying to work on. But no, they they’ve done well. We’ll let them report and we’re certainly thrilled to have them join the company.
Operator: Thank you. One moment for our next question, please. Our next question comes from the line of Carla Casella with J.P. Morgan. Your line is now open.
Carla Casella: Hi, thank you for taking the question. You commented on commodities and how they’re improving or normalizing a bit but there’s still some that are well above the pandemic. Can you just break it down a little bit in terms of what some of the key commodities that you’re seeing?
Scott L. Thompson: Absolutely. So the way I think about that is just from a framing standpoint is that we indicated historically that we’ve been able to cover the cost of the commodity inflation through taking price however, from a mathematical standpoint that created a margin, meaning the math issue approximately 400 basis points. So sitting here today, we think there is still about half of that to go. The way I think about from a commodity overall standpoint, it’s really puts and takes. Everything is definitely off its peaks and whether that be chemicals, lumber, steel, etc. However, if you look at where we started this journey, there’s still a way, there’s still a way to go. However, commodities in and of itself is not the story.
It is that there’s also another component of that story, which is we continue to work with our suppliers, our major suppliers to make sure that they understand the potential from a company standpoint and the momentum that we have. So yes, we’ve seen some tailwinds from commodities over the last couple of bps. However, what we’ve also done is we’ve entered into very constructive win-win contracts and relationships with our existing suppliers to ensure that the gift keeps on giving not only from a commodity standpoint but as a relationship, strategic relationship to see benefits from an EBITDA standpoint.
