Then we’re going to expand to 70,000 stores by the end of the year, really with some disruption at retail, we feel like the visibility will continue to improve. But we’re in the midst of selling in our trade program, which we think is a sustainable position on the retail fixture at retail. That will take place as we progress into the New Year. And I highlighted the equity campaign is really establishing the brand equity for NJOY and being able to unveil that as we progress into the New Year for the consumer.
Pamela Kaufman: Thank you. I will pass it on.
Billy Gifford: Thank you.
Operator: Thank you. And we will take our next question from Bonnie Herzog with Goldman Sachs. Please go ahead.
Bonnie Herzog: All right. Thank you. Good morning, everyone.
Billy Gifford: Good morning, Bonnie.
Bonnie Herzog: Good morning. I had a question on your guidance. You narrowed it, but essentially lowered your EPS growth this year. And then your new EPS guidance this year is below your mid single digit algo. So I guess I’m trying to understand how much of this is due to planned investments as you build your smoke-free vision versus maybe greater-than-expected headwinds. If you could touch on that for us it would help.
Billy Gifford: Yeah. I appreciate your question, Bonnie. I think this is very typical as we progress through the year. We are able to narrow guidance. That’s what we did. I think when you think about the enterprise goals of mid single digit growth, that’s really on a compounded annual basis, and we suggested when we did that. We were going to invest in the businesses as we felt that we need to invest, and that’s exactly what we’re doing. So as we progress through the year, certainly, the enforcement I referred to earlier, as that steps up, that should affect multiple categories in the — in our portfolio. And so I think it’s very typical as we progress through the year to be able to narrow it. We brought up the bottom and brought down the top. So that’s what we imprinted to you.
Sal Mancuso: Bonnie, I’ll also remind you that when we restated guidance upon the NJOY deal, there is amortization. It’s a non-cash expense drag on the year-over-year comparison.
Bonnie Herzog: Okay. That’s helpful. And then, I guess, just my next question beyond your Smokable segment. Despite expenses in op margins in the quarter, your dollar profit didn’t increase and then your price utilization, I guess, wasn’t as robust as I would have thought, given the three big price increases this year when we announced a fourth. And then your controllable cost per pack were up mid-teens. So in the context of all that, could you just talk about some of these drivers as well as your expectations for the rest of the year as it relates to those items. Thanks.
Billy Gifford: Yes. Certainly, you saw the overall industry volume at an increased rate of decline, and we tried to highlight that in the decomposition and the impact that the illicit e-vapor was having on the cigarette category. I think when you think about it, look, we’re very pleased that margins overall would step up. I wouldn’t get hung up in eight quarters price realization. We really think about it through time. So we highlighted as we progressed into the year, that there are a couple of pockets that we needed to invest in. I think you see the benefit of those investments with Marlboro share. And so — but again, I wouldn’t get hung up on any particular quarter, we tend to look at it over a bit longer term than just quarter-to-quarter. And so that’s the way we manage the business. I think when you think about the cost, as you have fluctuations again in a quarter as you have fluctuations in volume, that’s going to gyrate that controllable cost per pack.
Bonnie Herzog: All right. Thank you.
Billy Gifford: Thank you, Bonnie.
Operator: Thank you. And we will take our next question from Andrei Condrea with UBS. Please go ahead.
