“I expect that level of productivity contribution to remain or accelerate as we get to our target of $1.5 billion of COGS [gross] (ph) savings throughout the year.”

In context

“s just around the gross margins and the cost of goods sold inflation. And this morning, the inflation came moderated a bit. So I guess two questions. One, was any of that moderation of inflation present in the quarter, so did it affect at all gross margins in this quarter? And then as we're thinking about it going forward, as we’re thinking about our models, is there anything that would offset it actually improving gross margins a little bit more? So whether it's segment mix or geographic mix, just how should we think about how that improvement sort of nets out in our model? Andre Schulten: Yeah. Good morning, Bryan. Look, I think the main driver of our gross margin progress will continue to be productivity. You see 170 basis points contribution to gross margin in the current quarter. And I expect that level of productivity contribution to remain or accelerate as we get to our target of $1.5 billion of COGS [gross] (ph) savings throughout the year. We continue to have an effect from SK-II and SK-II is down 35% in the quarter. So it's a significant impact when you think about the gross margin that business contributes. So the other driver here is as we see annualization of the SK-II effects that will help gross margin going forward. To the inflation question, there is some level reflected of easing inflation. The majority of that, I think, will spread throughout the year. Again, our P&L variance holding policy plus contracts generally make for a six to nine months delay from actual commodity inflation to it flowing through our P&L. So that will be a help, I would probably model towards the latter half of the fiscal year. Operator: Our next question will come from Chris Carey of Wells Fargo Securities. Please go ahead. Chris Carey: Hi”