Esther Osinaiya

Esther Osinaiya asked about the drivers behind the stronger seasonal norm quarter and whether the exit rate into next year suggests a stronger outlook than the preliminary guide implies for pricing or overall performance.

Answer

SVP and CFO Michael Petro explained that the stronger seasonal norm, particularly in gross profit, is driven by cost measures implemented in Q2 and Q3, which are bearing fruit in Q4. He stated that the mid-single-digit pricing guide for next year is appropriate, incorporating carryover and January 1 increases, and the exit rate is consistent with remaining disciplined.

Esther Osinaiya, on behalf of Angel Castillo, asked about the drivers of the stronger seasonal norm quarter and whether the exit rate into next year suggests stronger performance than the preliminary guidance implies for pricing and gross profit.

Answer

Michael Petro, SVP and CFO, explained that cost measures implemented in Q2 and Q3 are beginning to yield results in Q4, leading to a better sequential change in gross profit. He confirmed that the mid-single-digit pricing guidance for next year incorporates both carryover pricing and planned January 1 increases, with the exit rate being consistent with expectations.