Jacob Levinson : Okay. That’s helpful. And just switching gears, I think your balance sheet is probably the least levered maybe since you took over D.G., is that reflecting some conservatism on the macro? Or is there appetite for more aggressive share buybacks or special dividend or otherwise returning more cash to shareholders?
Dee Merriwether: You are correct. We are very fortunate to have a strong balance sheet. And at the time, based upon our cash flow generation, we don’t see a significant need to further lever the business, use the word conservatism. You can use that word. But we don’t see a big need right now for that. Now based upon our cash flow generation, our access to capital, if there ever becomes a need for that, we feel like we are well positioned to go into the capital markets to help us with anything. But right now, based upon our operating cash flow and conversion, we feel like we’re in a good place with leverage.
Operator: Your next question comes from Christopher Glynn with Oppenheimer.
Christopher Glynn : I was curious on HTS price/cost dynamics, a couple of components. What was price in the quarter? And then is it holding well in the baseline? Looking fine on market competitive pricing to expect neutral price/cost margin impact in ’24 like the algorithm?
Dee Merriwether: So just to answer your first question, price/cost for High-Touch was 2.5% in the quarter. And again, we take a longer-term view of price competitiveness, remaining price competitive. And due to the lumpiness of all of the components of price and costs that impact the business, if you look at a 2-year stack, we expect to be close to neutral if you accrue ’22 and ’23. I would say that would be looking ahead, we would not change that position. We are targeting price cost neutrality over time. When we get to early next year and set the 2024 guide, we’ll talk in more detail about 2024.
D.G. Macpherson: The only thing I’d add to that is that we are not seeing a lot of product cost pressure relative to what we’ve seen in the last few years. As you might expect, there’s been a lot of puts and takes, but generally, we’re not expecting a lot of product cost inflation heading into the new year. True.
Christopher Glynn : Okay. And then on Zoro and MonotaRO, just curious how you’re thinking about path back to the kind of 16% to 18% long-term top line targets?
D.G. Macpherson: Yes. So what I’d say is Zoro grew — I’m sorry, MonotaRO grew to about 13% in the quarter. The Japanese market has not been strong. We’ve been dealing with some inflation for the first time really, in anybody’s memory there. I have a lot of confidence that the team is going to be on the right track to continue to deliver strong growth, whether that’s approaching 20 like they’ve done over the last 20 years or something less than that is probably debatable. But there’s absolutely no concerns about the performance of that business. In Zoro, we’ve seen some competitors to Zoro actually go negative in the last couple of quarters in terms of revenue. And so that has had an impact. The market certainly has had an impact on Zoro.
I think you talked about it. The core B2B sales were up high single digits at this point, which is not where we want to be, but not horrible. There’s a lot of other factors going on, particularly consumer business that’s falling off, and we want that to fall off. But there’s a lot of things we’re working on that business to continue to get more repeat business out of customers, and we need to get better and better at that, and the team is working to do that. And that will be the real key to us being successful with growth long term as well.
