Steve Marotta: Good morning everybody. I know that you are not providing any sort of guidance for next year, but maybe at the highest level, can you talk a little bit about your planning? Do you think it will be a tale of two halves, or maybe just even at the very littlest can you talk a little bit about the cost initiative programs, just remind us what the size was originally, what was captured this year and what is expected to be captured next year? Thank you.
John Enwright: Thanks Steve, yes. We do think next year is going to be a tough year, so I think a lot of people are thinking about a recession next year and as we’re finalizing our plans, we’re taking that into consideration while we finalize our plans. In regards to expense reduction target, it was $25 million, was kind of what we committed to, and a lot of that commitment is going–we’re going to achieve a lot of that commitment in this year, so ultimately we’ll have gotten a lot of that through the P&L this year and ultimately then we’ll lap it next year. We won’t continue to grow from kind of–we’ll have that in our base next year, the $25 million compared to where we expected to be this year, so. I think we’re not finalized with the plans. We have to get through holiday as we think about next year, so that’s why we can’t be really committal on what we expect for next year, but we’ll be able to give a much more detailed, thorough answer in a couple months.
Robert Wallstrom: I think the only thing I would add, Steve, just from kind of a big picture market standpoint, the way we’re looking at it is we think the positive for next year, which John spoke about earlier, is the reduction of international logistics expenses, right? That’s going to be a positive on the P&L next year and a tailwind, which is good news. On the flipside, we do expect the macro environment to continue to be challenging, and as long as there’s this recessionary pressure, that that will be pressure that we’re facing next year, and then the company will just continue to be very disciplined on the SG&A line as we move through, making sure that we’re controlling SG&A well to manage through the recessionary environment. To me, those are kind of the three big levers that we’re looking at next year, but we’re obviously still finalizing our plans.
Steve Marotta: That’s really helpful, Rob, and you actually just touched on something I wanted to follow up on from a logistics standpoint. Can you remind, if the numbers are handy, what that incremental was in ’21, what the incremental incremental was in ’22, and those two numbers would be helpful because I know that that is not going to 100% roll-off because inventory needs to work its way through the system, but at the very least knowing those two numbers would give a benchmark for what could be in the ultimately earnings power standpoint. Thanks.
John Enwright: Yes, I can handle that question. In ’21, it was about a $6 million increase, roughly about that number, and in ’22 it’s about $7 million, so if you go back to logistics expense from pre-pandemic level over ’21, it’s about $12 million to $13 million.
Steve Marotta: Really helpful, thank you.
Operator: That does conclude the question and answer session. I’ll now turn the conference back over to Rob Wallstrom for any additional or closing remarks.
Robert Wallstrom: Great, thank you. I’ve enjoyed being with this amazing organization for the last nine years. I could not have been surrounded by a more dedicated, collaborative and committed team, and I have enjoyed being part of the company’s special and powerful culture. I’m especially proud of the innovation, tenacity and resilience that our teams have demonstrated to overcome challenges as we stayed focus as a customer-centric and purpose-driven organization. Forbes names us as America’s number one best midsized employer for a reason. It’s an exciting time as Jacquie leads the company into the next phase of the future. We have a portfolio of two iconic lifestyle brands, multi-generational customers with amazing loyalty and devotion, remarkable brand recognition, a solid balance sheet, and incredible team.
With Jacquie’s leadership and strategic direction, I believe the company will deliver meaningful growth and value to our shareholders over the long term. I look forward to following the company’s continued progress and wish everyone much success. Thank you for joining us today, and I know Jacquie and John look forward to speaking with you in March on the year-end earnings call.
Operator: Thank you, and that does conclude today’s conference. We do thank you for your participation. Have an excellent day.
