So I think what you’ll see right now is, again, we’re early days, but you should see full channels, right, as everybody gears up and as our green grass and retail partners gear up for the season ahead. That question may have a better answer two, three months from now after we’ve seen the beginning of the season play out. But from what we can see now, we’re seeing channels beginning to fill up in anticipation of the season. And as we look at that, again, it’s not a perfect balance between supply and demand, but we don’t see any outliers that give us cause for concern at this point.
Daniel Imbro: Great, really appreciate all the color. And best of luck.
David Maher: Thanks, Daniel.
Tom Pacheco: Thanks, Daniel.
Sondra Lennon: Thanks, Daniel. Operator, next question please.
Operator: The next question is from Mike Swartz from Truist Securities. Mike, your line is open. Please go ahead.
Michael Swartz: Hey, good morning everyone. Just maybe a first question, maybe the 30,000-foot level around a lot of the investments you’ve made, David, I think you called them out at the beginning of the call around capacity and capabilities. I guess where do we stand and we use the kind of the baseball metaphor, where do we stand? Which inning are we in, in really this investment phase? Because it sounds like there is going to be some increased investment in 2023 as well.
David Maher: Yes. Hey, Michael, I would say, on one hand, it never stops, right? You’re continually investing in your capabilities and infrastructure sometimes for growth, sometimes for efficiency, sometimes for quality. But we are comfortable that we’re some 40-plus percent bigger than we were a handful of years ago, and we are comfortable that from a capacity expansion standpoint, we are where we need to be. As I mentioned, most of our businesses were in a pretty good place from a supply and availability standpoint. The two outliers might be balls and gloves. In the ball story, really less predicated on our capacity and more a function of our suppliers’ inability to get us the raw materials we needed, and we’re long past that point. So hopefully, that gives you a sense for where we’re at.
Michael Swartz: Yes. And I guess where are the future investments really oriented as we talk about ’23?
David Maher: Well, the one call out I’ll make is we’re continuing to invest in technology to enrich the consumer experience to enrich our trade partner experience and to just create better architecture throughout our organization to be more effective and efficient. So as we think about the investments, that’s area one. Area 2, and we’ve touched on this a little bit. We continue to invest in distribution around the world. right? We made some moves last year with apparel to expand our distribution capabilities. We have some opportunities in all markets outside the U.S. to rethink and reimagine how we distribute products in and through our warehouses around the world. So that’s an area that we’re paying attention to as well.
Michael Swartz: Okay. Great. Maybe just a follow-up on balls. On the Pro V1 relaunch this year, you’re taking a 10% price increase, which I think is one of the largest price increases you’ve taken in that business. You’ve got a lot of competition, and obviously, competitors have been doing very well on the ball side the past couple of years. I guess what gives you the comfort or confidence in taking that level of pricing?
David Maher: Yes, hey fair to say pricing was driven by input costs that we’ve seen across all areas of our business. We’ve always been comfortable at a premium to the competition based on the performance and quality attributes of our product. And that’s what we’re seeing now. We’re also seeing the introduction of some — or the return of some programs, our loyalty program is back, which golfers are great fans of. And important to note, as well that our pricing journey is a long road in the sense that our two-year price life cycles. We don’t take a lot of moves, and this one reflects — it’s been a couple of years, number one. And number two, we’ve incurred and absorbed a good amount of input cost over the years. So there’s a bit of a catch-up baked into where we are.
