Jim Duffy: Thank you, guys. Good morning. Some very helpful details in the release on the quarterly cadence of transitory costs and planned savings. Thank you for that. I’m trying to get a handle on the expected revenue cadence across the year. It sounds like good growth from Merrell and Saucony in the first quarter. I’m curious what’s the revenue contribution of the 4.5 million pairs of end-of-life inventory like $100 million plus. How much is that flattering the first quarter and the Merrell and Saucony growth in the first quarter? And then related to that, the active segment guide implies deceleration for the balance of the year. Other promotional and clearance revenues to consider in the second half of ’22 base that keeps you conservative on the revenue outlook for the balance of the year?
Mike Stornant: I’ll take the first part. Some of that product, that 4.5 million we referenced some of that was shipped in Q4, a little more than we expected. So it’s not quite the impact that you estimated, Jim. The product that we have on order now, which is a great development for us to be able to secure those orders and we have good visibility to when we can move those goods out of the warehouse. Those are spread over Q1 and Q2. So not especially impactful to Q1, actually, a little bit more so in Q2. And for the phasing of revenue, just remember that with Merrell and Saucony having the biggest impact in 2022 from the closure of the Vietnam factories. They were coming into the year with very low inventories and sort of chasing business, and kind of delivered suppressed results in the first quarter last year.
So the growth rates for Sperry and Saucony in the first quarter are probably going to outpace the rest of the year just based on that. So I think in terms of phasing in the first half versus the second half of the year, our outlook for constant currency growth at the high end is almost 3% growth and very similar growth in the first quarter. It ebbs and flows a little bit differently by brand because of the supply chain disruption and some of the inventory issues that we saw in ’22, it’s not a normal year from that standpoint, and the comparisons are a little bit different by brand. But I think overall, similar growth rates in the first half versus the second half of the year. And again, in 2022, our performance in the back half was certainly under our expectations, right?
We had come into the back half of the year with a more optimistic view, and then the market changed quite a bit. And so our outlook for the back half of ’23 is, I think, very cautious given some of the volatility in retail inconsistencies that we’re seeing out there. But very practical given the visibility to the business and the trends that we’re seeing, especially in the Performance brands, Merrell Saucony in our Work business, which continues to be consistent. So we’re comfortable with that kind of view of for the back half of the year. What was the second part of your question, Jim? I’m sorry, I missed that.
Jim Duffy: No, I think you covered it. Just directionally around cadence of revenue over the course of the year and how to factor in the pairs of end-of-life inventory and the impact to that. I did also want to ask one on cost savings, and then I’ll pass it along. I really appreciate the detail outlined in the release. You’ve got $30 million of cost savings planned in the fourth quarter. Mike, should we think about that as kind of a quarterly run rate that continues off the fiscal ’22 baseline into fiscal ’24?
Mike Stornant: Yes. I think that’s a fair — obviously, the numbers ebb and flow a little bit in terms of some of the onetime benefits that we’ll get that kind of get pushed into the fourth quarter based on the flow of inventory. But for the most part, I think that’s a safe assumption.
