Greg Sanders: Yeah, Mark. I think we see it from multiple angles on gross margin. I mean, to start, we see some benefit out of our private label products that we’ve continued to increase penetration on. We’ve also issued a couple press releases over the past few quarters on newer distribution partnerships that we’ve identified in the space with Quest and Grodan and others. So those have had meaningful lifts to our gross margin as well. From a margin perspective, I think the industry as a whole feels a lot of pressure to price things at the right price. You get some level of pressure from the customer side of things as well as the vendor side of things, particularly on the more distributed products that we land from other distributors in the space.
So we’re working hard every day to continue to hold our margins strong. We think there’s opportunity this year to lower inventory in our business, which will have an impact on how we might look at Shrink, or overstock, or obsolete inventory. We believe we have the right reserves in place today, but maybe there’s room to gain there and cost to continue to control more and more as we progress forward. So there’s a lot to unpack within margin, but we feel comfortable with where we landed in 2023 at 27.1%. And we do believe that in 2024 there’s room to build upon that number in a positive way.
Mark Smith: Similar question is, as we look at G&A and kind of corporate costs, You guys have done a good job cutting there. Do you feel like you’ve kind of cut everything out? Maybe that’s possible or is there more opportunities in that line?
Greg Sanders: Yeah, I think there is more opportunity there for us. Part of what you’ve seen from us through the last few quarters, you take Q3 and Q4, that’s two periods in our business where we closed our consolidated 12 locations. A lot of the costs from those activities are still embedded in our results in the fourth quarter. So we do expect some level of cost improvement into the first quarter of 2024, and to continue forward into the rest of the year.
Mark Smith: Perfect. Last one for me is just, I don’t know, Darren, if you want to take it, just kind of big picture, use of cash, you’ve still got a really strong balance sheet. I know you’ve been conservative in how you’ve used it. But any, if you want to kind of rank or talk about kind of where you expect to put cash to work. And then, if you get a deal done here on MMI, if that changes your thinking at all on use of cash?
Darren Lampert: Again, we’re always looking, Mark, whether it’s, I doubt it’s going to be on the store side of it because there’s nothing out there large enough, that’s going to take that kind of cash. So it very well could be on the product side of it, it could be on the gardening side of it. And as we spoke earlier, we’re getting more involved in the gardening side, getting products into IPC around the country. We just also opened a website. And again, we are making pushes. We do believe that the hydroponic space, the gardening space is tremendous similarities. And we do believe that, the typical gardeners out there want new products, more approved products, healthier products and we have them. They’re coming out of GrowGen every day.
So we do believe that there could be acquisitions on the lawn and garden side of it. But as of now, until we either monetize MMI, no more we see a tremendous turn of the industry, we will keep our balance sheets strong unless there’s something that we can’t resist.
Mark Smith: Sounds great. Thank you.
Operator: Thank you. There are no further questions at this time. I will now hand it back over to Darren Lampert for the closing remarks.
Darren Lampert: Thank you for your time today and thank you for your interest in GrowGeneration. Have a wonderful evening. Thank you.
Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect.
