Jeff Lick: Awesome. Great quarter. Thanks very much and I look forward to you touching base later.
Joseph Vassalluzzo: Thanks, Jeff. I appreciate it.
Operator: Thank you. Wait for our next question. It comes from the line of Michael Lasser. Mr. Lasser, please state your company name and proceed with your question.
Michael Lasser: Good morning. Thank you so much for taking my question. It’s Michael Lasser from UBS. Anthony, how long can sales decline at this rate and on ODP still generate flat to positive operating income moving forward?
Anthony Scaglione: Well, I hope we don’t decline at this rate forever, but obviously the macro is something that we’ve been signaling from the beginning of the year. So, I think we’ve been very consistent and transparent that we see the choppiness there. But I think we also demonstrated that we can and have been focusing on the levers we can control and managing through that choppy environment by staying vigilant on cost, driving that cash conversion, ensuring that we have the value proposition with customers and not chasing bad deals. And I think that’s key at the end of the day in both our channels. We’re being vigilant in terms of the cost drivers. We’re being vigilant in terms of the pricing drivers. And we’re seeing some positive indicators, especially in our B2B business, across ODP Business Solutions and Veyer that are encouraging, but we’re still dealing with a relatively choppy macro and ensuring that we continue to stay focused on the cost levers that we have in front of us.
Michael Lasser: And this is probably asking the same question just a slightly different way. If we assume in our models that ODP sales decline at a similar rate in 2024 as the macro gets worse next year, is it best to expect deleverage on operating income or you’ll have to invest some of the profits to stabilize or continue to maintain your market share?
Anthony Scaglione: Yeah, I mean we’re not addressing long-term targets today, so I want to caution on 2024, but I think we’ve exhibited our ability to manage the cost side of the business. Clearly, we have opportunities on the B2B side and broadly speaking with ODP Business Solutions that we’re seeing as a positive given my earlier remarks around our balance sheet strength to work with our customers more strategically. Our pipeline continues to be the best we’ve ever seen. While the conversions are taking longer, we’re winning new business and I think that is the opportunity we have to offset some additional pressure on the retail side as we continue to comp negatively and continue to rationalize the portfolio from a store count perspective.
Joseph Vassalluzzo: Hello, Michael, this is Joe Vassalluzzo.
Michael Lasser: Hey, Joe.
Joseph Vassalluzzo: Go ahead. I’m sorry, Michael.
Michael Lasser: You go ahead, Joe.
Joseph Vassalluzzo: I just wanted to introduce myself, Michael, to you. This is Joe Vassalluzzo, again. Just to echo what Anthony’s been saying with regard to ODP Business Solutions and really goes beyond that, it’s throughout all four of our business units is our commitment, and myocal [ph] focus on operational excellence and our capital allocation plan and our low-cost business model. That permeates everything that we do and I think it’s evidenced by the performance you see, despite the top-line softness that we’ve witnessed.
Michael Lasser: Got it. Thank you very much. My last question is, why is the progress on the top-line at Varis slower than what you expected?
Joseph Vassalluzzo: Yeah, we addressed that last quarter, Michael. We had some technical stack issues that we had to address that we completed early in Q3, so we’re a couple of quarters behind where we would like to be from a various perspective. That being said, we are getting good feedback from customers across our retail manufacturing education markets that the one-stop purchasing platform that Varis is resonating. It just onboarding and ramping is taking a little bit longer than what we would have liked and what we expected at this time when we provided initial guidance.
