Deborah O’Connor: Yes. No, good question, Joe. Thanks. I think the third quarter sales performance also went in form how we look at the fourth quarter. And we thought there would be some lessening of the environment and that now there’s really greater uncertainty and kind of recession points. The consumer is definitely reducing their discretionary purchases more than we would have anticipated in the fourth quarter. And I think the weaker demand that Tom has talked about in our tech services really hit us harder in the fourth quarter than we would have imagined. The PC trends that we talked about in the third quarter continued into the fourth quarter, and our Kensington business suffered from that, more than we would have anticipated.
I think office also was down a little bit lower than what we had expected given the office stabilization that we had thought we’d have more return to office in the fourth quarter than what happened. And then lastly, I would just say the retailers really showed their conservatism in the third quarter that we believe will carry into the fourth and so far has, and that also was an impact as we looked out. We are hearing some messaging too from our retail partners of a softer holiday than we would have anticipated a couple of months ago. And so all of those factors together, I think, has caused us to reevaluate the fourth quarter and come in with our reduced guidance.
Joseph Gomes: Okay. And then kind of a follow-up to that. We’re talking about a weaker-than-expected or originally expected environment here. And I know you guys said that one of the things you want to try and do is maintain that gross margin, you don’t want to give any of that back. But in a weaker environment, competitive environment oftentimes ticks up. And how quickly do you think your customers will be coming, looking for price reductions to make themselves more competitive and impact your margin level there?
Thomas Tedford: Yes, Joe, an interesting question and certainly one that we talked about internally. First, we try to position our business holistically with our customers, right? We want to drive value for them and value can be defined in a number of different ways. Certainly, price and program are constant negotiations with our customers and rightfully so, that they have a responsibility to do that, and we have a responsibility to make sure that we are competitive in the marketplace, and we believe that our current pricing is competitive. I think we can support that. And I gave an example in our prepared remarks and as a response to the question earlier, with our back-to-school offering, right? We took share, we grew our branded business in a very competitive season in which retailers led with private label.
So we know we have an offering that creates value for our customers, and it is desired from our consumers. And so we have to protect that value and that value comes at a cost and at a price. And so we work hard to be competitively priced in the marketplace, and we believe we are. But where we do need to lean in with price, we’re prepared to do that, but we have to offset that with more competitive input costs, which we’re prepared to do as well. So this is a mix of work that we manage. It’s not just simply a negotiation with the customer. And I think we’ve got a strong history of doing that. And as I mentioned, right, we believe our gross margins are fully recovered, and we want to protect that and maintain that. That’s important to our company, it’s important to you.
Deborah O’Connor: Yes. And I would just add, inflation is still there, Joe. And so we’re still seeing the input side, labor’s up, things are up. And so as far as to Tom’s point, input costs are going up, albeit not like what we had seen by any means, but up. And I don’t think the demand environment this year matters on price as much as it does in just the discretionary purchasing.
Joseph Gomes: Okay. Great. Thanks for that insight. Appreciate it. I’ll get back in queue.
Thomas Tedford: Thank you, Joe.
Operator: At this time, we have no further questions, so I’ll turn the call back to the management team for any closing remarks.
Thomas Tedford: Thank you for your interest in ACCO Brands. While the operating environment remains uncertain, we are focused on executing against our key priorities and keeping margin improvement at the forefront. We have managed well in difficult environments and are confident in our ability to navigate the current economic challenges. With the reimagined approach to product innovation, prioritization of key growth categories supported by leading brands and a highly effective global commercial team, we will be well positioned to deliver organic growth as global economies recover. As previously mentioned, we are analyzing our cost structure, and we’ll be implementing actions to lower our costs. With improving revenue trends and a lower cost structure, we believe compelling market performance will follow. So we look forward to talking to you in a couple of months to report on our fourth quarter results.
Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.
