“But if things perform better than we expect, we certainly could see that be a margin driver over the year as well.”

In context

“argin standpoint, I think it’s fair to assume, given the outside sales growth that we expect in Q1 that your EBITDA margins could be stronger in Q1 versus where we have pegged them for the year. So, I would use that as a little bit of color on how to think about it. And in terms of margin opportunity overall, just as we saw in fiscal ‘23 and as we spoke to, gross margin remains an opportunity for us. We have talked about some of the cost headwinds that we have carried and particularly related to transportation costs or foreign exchange and things of that nature that should come our way over time. And then also from a non-marketing SG&A standpoint, continuing to seek leverage out of that non-marketing SG&A line. We did that in fiscal ‘23. Our current outlook does not necessarily have that. But if things perform better than we expect, we certainly could see that be a margin driver over the year as well. Operator: And our next question comes from Jon Andersen with William Blair. Please go ahead. Jon Andersen: Hey. Good afternoon everybody. Thanks for taking the question. Just one quick one, a bit of a follow-up to Rupesh’s. On gross margin, you have talked about the benefits of mix and cost savings and then the transportation costs, particularly ocean freight. You posted your strongest gross margin rate of the year in the fourth quarter. And I think the guidance for 2024 implies a full year rate that might be somewhat below what you just did in the fourth quarter. So, I just want to understand some of the puts and takes and the assumptions there if our numbers are accurate. And then whether there is just some conservatism baked in there as well, given that we are very early in the year. T”