Timothy Wojs: And I guess, have you seen any sort of kind of underlying improvement in the end market, I mean obviously, rates have kind of moved back with what the Fed has done. I’m just kind of curious if you see that in your order rates at all?
Neil M. Ashe: Yes, so obviously we’re seeing — if its year-over-year improvement and sequential improvement, there is improvement in our order rate. As we look forward to our — kind of our view on the macro, as I’ve been consistent with this, we don’t have a better crystal ball than you do. Our — we are confident in the current levels of the order rate and the performance of the order rate. As I said last quarter, we’re comfortable operating in this environment. And as we look forward, we feel pretty good about where things are. Our outlook doesn’t expect things to get materially better or materially worse basically. So as Karen said, we’ll reevaluate at the middle of the year where we are for the rest of the year.
Timothy Wojs: Okay, perfect. And then maybe just the second question, just on maybe margins, just given where the gross margins have kind of landed over the last couple of quarters, I mean, has that changed how you think about kind of the reinvestment that you’d want to make or need to make in the business to drive above-market growth or do you think it’s just kind of a higher base level of margin for the business kind of going forward?
Neil M. Ashe: So a little bit of both, and I would say on that front, Tim, we don’t believe that these margins are a result of harvesting. So we believe that they’re the outcome of the strategy, as I’ve said kind of — and I won’t continue to be redundant on it. But I believe there are an outcome. So we believe this is a point in time. At the same time, we also are beginning to focus on verticals and areas where we haven’t on the Lighting side, either been strong or participated at all. A very small example, we made a tiny investment in Horticulture. Why, because we think over the next kind of period of time that will be an opportunity and so we’re positioning for that now. So we’ll start to make those kind of investments, Tim, so that we can continue to hopefully expand the addressable market on the Lighting side.
And then I don’t want to miss the opportunity to talk about Spaces. And Karen can address the specifics of the quarter — the financials in the quarter, if necessary later. But in the big picture, the Spaces Group is growth accretive, margin accretive, and returns accretive. And we feel really good about what we’re doing there and their impact — their ability to continue to impact the company going forward.
Timothy Wojs: Very good, good luck for rest of the year guys. Thank you.
Operator: Thank you. Our next question comes from the line of Chris Snyder with UBS. Your line is now open.
Christopher Snyder: Thank you. I wanted to follow up on the gross margin, up a 410 basis points year-on-year despite the sales decline, which is really impressive. It seems to us that the driver there is one price cost, you guys have helped prices costs have moderated due to the technology, the vitality and all the stuff you mentioned, Neil, but also some level of selectivity, which you’ve talked to over the past couple of quarters. When we think about that 410 basis points, could you kind of break down the build between selectivity and price cost improvement over the last year? Thank you.
Neil M. Ashe: Yes, I’ll start, Karen, you fill in for us. We have not built a walk directly from — to break down the 410. So I’m going to do this more off the top of my head, Chris, than I am kind of read on a walk. Big picture, let’s start with — let’s start with price. So, as we’ve said consistently, we manage price to where we think we need to be in the marketplace. So, obviously we have real strength and Contractor Select. You can see the retail channel was up this quarter. It’s the growth spot despite the fact that net sales were down. So obviously we’re meeting the market at that level of the market. On the project side, we have the ability to choose which projects we take, obviously. So in our pricing and then our bidding on those projects, we are choosing which projects we want to invest in.
And so — and we do invest in some projects. So this is not — we’re not peer price takers here. We are choosing and based on the marketplace. And that’s really the key for us is that when we talk about managing price strategically, we’re meeting price where it needs to be. Second, on the cost front, so obviously there’s been material improvements in the portfolio over the course of the last three years and that continues. That has allowed us to create a more normalized distribution of margin within the portfolio. So we don’t have the laggards that we had in the past. And so it’s not wholly dependent on mix in a way that it has been in the past. Now I would say that this quarter we had a good quarter in controls and obviously, ISG performed at a higher growth level than ABL.
