Aaron Erter: Yes. So we expect R&R to remain more robust than new construction. And as we said before, we’re going to continue to try to outperform the marketplace. So if you look for ColorPlus, you can see some of the progress we’ve made there, up 31%, year-over-year. So we continue to grow R&R, in particularly, some of the focus areas like ColorPlus. But like every segment in every region, we would expect the growth rate to slow. If I just have to put numbers on it, if I would look at R&R volume in the second half, I’d probably call it flattish.
Keith Chau: Thanks, Aaron. And then market share, or market share growth?
Aaron Erter: Yes, Keith, as far as market share growth, I would just say that we’re looking to outperform the markets that we participate in.
Keith Chau: Okay, that’s great. Thanks very much, Aaron. I will circle back.
Aaron Erter: All right. Thanks, Keith.
Operator: Thank you. Your next question comes from Simon Thackray at Jefferies. Please go ahead.
Simon Thackray: Thanks very much. Good evening, Aaron. Good evening, Jason. Keith sort of covered off, I think on the first part about visibility into R&R. But I’m interested, maybe just to extend the question a little bit on the visibility part. You get visibility into new construction, quite clearly with your contracts with the large home builders with a little less reliable, I think. What are your contractors actually telling you on the ground today as to the order flow?
Aaron Erter: Yes, and I think I got the question as far as what are contractors telling us about the order flow?
Simon Thackray: Yes, in R&R, in particular, Aaron.
Aaron Erter: Yes, from an R&R standpoint, as I said, R&R is more robust. But we are seeing the rate of orders come down. And as I mentioned in for our guidance, obviously new construction is a big piece of it. But we expect R&R to slow down, and also we’re seeing different. If I look at North America, it depends by region of the country, right. Those regions of the country that are more focused on new construction, we’re seeing that decline more, and then those that are more robust as far as R&R, like we talked about the Midwest, the Northeast, they’re doing better for us, and we expect them to do better than us because they’re exposed more to R&R versus new construction.
Simon Thackray: Okay, that’s helpful. And then, just in terms of the narrowing of the North American EBIT margins this year, though, they were 28 to 32. They’re 28 to 30, for reasons which are very easy to identify. You’d mentioned the margin target before 25 to 30. Just any view of the medium to long-term, North American EBIT margin, which has been set at 25 to 30. Is there an expectation that could be lowered?
Jason Miele: Hey, Simon. This is Jason. I will start with the current year, last quarter, we have talked about 28 to 32, requiring us to hit the top line estimates. And obviously, with us calling down the back half of the year from volume perspective, that’s why that’s lowered.
Simon Thackray: Yes, I understand that.
Jason Miele: As we move forward, we will still be at operating in the long-term range. Obviously, we’re tracking market conditions going into Calendar ’24 and beyond.
Simon Thackray: Okay, okay. So long-term 25 to 30, we can stick with? Is that right?
Jason Miele: Yes, if you look at the back half of this year, we’re obviously calling between 28 to 32 for the back half, which is a much lower volume outcome than previously assumed.
Simon Thackray: All right. Thank you.
Operator: Thank you. Your next question comes from Lisa Huynh at JPMorgan. Please go ahead.
Lisa Huynh: Hi, morning. So thanks for the color around the order backlog being reduced. Can you just confirm that customers are still on allocation and well within the guidance you expect that to roll off?
