And I would say, just for context at our current level of business, I would say, to operate in an environment without debt, and I’m not even saying that’s the goal. We probably need roughly $100 million given some of the liquidity dynamics and where the cash is held ballpark, and then you can kind of gauge from there and that’s – it always becomes a little bit of a waiting game with repatriating cash back from China. And it’s just a process that you go through in that market that’s unique to China.
Operator: Our next question is from Linda Bolton-Weiser with D.A. Davidson.
Linda Bolton-Weiser: Yes, hello. So I was wondering, just on the cost side first, I guess. You had mentioned that freight cash were down year-over-year in the quarter. Is that a sustainable comparison now going forward for the next few quarters? Can we expect for that freight cost to continue to be down year-over-year?
Jim Brown : Yes, I’d say it’s sustainable, and it will be down year-over-year. We haven’t really gone out and got better freight costs or any of that, but it’s just a stabilization of everything after COVID, and we can depend on the rates as well as the lead times and transit times, and we’re not expediting shipments like we had to do to make sure that we didn’t go on back order through the ups and downs of COVID and right after that.
Doug Hekking : Yes. I would also say one of the things that will help out is the ops team has done a really good job locating the inventory in market to help us have a little bit more of a shock absorber with any change in demand doing the other stuff that we can respond in a more timely manner. And so I think the strategic efforts of the procurement and supply chain teams I think, along with really just the stability of the supply chain in general, I think both contribute pretty positively there. And it really is, like Jim said, is the absence of airfreight, which is the big delta there.
Jim Brown : And you can see it, too, Linda, and our level of inventory right now, that $65-ish million amount where back up a few years ago, we were at $100 million just because we couldn’t depend on stuff and we had to stock up. So I think that will remain around that same amount. And that just, again, is hats off to our operational teams managing the business better and having the dependability of the logistics companies now.
Linda Bolton-Weiser: Okay. Great. And then I was just curious about Malaysia and the Philippines because you mentioned that the promotional initiative helps Malaysia, and Malaysia was up 7% local currency, that’s good. But then Philippines was still so weak. Did you try the same promotion in the Philippines and it just didn’t work or what is the difference here between the Malaysia and the Philippines performance?
Doug Hekking : Yes. The markets are very unique. Brent Neidig is in here, and I’ll let him chime in. I think he can go back and give a pretty articulate response. But the Philippines is a great market with people who are very entrepreneur minded. I think the COVID environment has hit that market particularly hard. And the operating environment is what it is at this point. We’re obviously optimistic there, but there’s still work to be done. Brent?
Brent Neidig : Hi, Linda. Doug mentioned it, the parameters of the promotion were quite similar across markets, but each market responded differently. And I think that depends on several factors. One is the socioeconomic environment, I think the Philippines has been hit harder than Malaysia has, which is one of the primary indicators of why they didn’t respond as effectively as Malaysia did.
Linda Bolton-Weiser: Okay. And then in Mainland China, so that was better performance there. But I guess I’m curious about the active customers being up 5% year-over-year, but local currency sales were still down slightly. Is that just like kind of like an average ticket per customer is sort of lower or how do I interpret that information?
Doug Hekking : Yes. I would say I think currency has played a little bit of a roll year-over-year, and that’s been a pretty hefty impact year-on-year when you look at the full year. Remember, our customer count is primarily a quarterly metric. And so as you look at the full year, you have to just take that into consideration. But I think we’ve been pretty pleased with the resilience of China. And I know, Brent, with the team that we have there is optimistic, and we’ve done things quite a few things different that we see as pretty encouraging opportunities for us to look at in our other businesses as well.
Brent Neidig : I’d say it’s also a function of the promotions that we run the different incentives that we’ve had that perhaps the spend per customer has slightly been down. We are okay with that. We — our ultimate goal is to attract and retain consumers and customers. And so as we see that active customer number increased, to us that’s a good long-term indicator that we want to continue to build on that momentum.
Linda Bolton-Weiser: Well, let me just ask one more thing. In terms of the cadence of promotions in 2024, so I guess you’ve mentioned doing something here in the first quarter. But beyond that, what would be the plan? Are you going to kind of pull back on these big promotional events or still do them periodically. What’s the plan there?
