Mark Petrie: Yes. Understood. Yes. Okay. Perfect. And then also just following up on the comments you shared with regards to sort of the demographics of the customer and sensitivity there. Can you just update us in terms of what you’re seeing from the customer that’s active in the business today, who’s new to the industry returning to BRP? And any sort of color you can provide on demographics, that would be helpful.
José Boisjoli: We didn’t see any trend change into the industry. And this is — we don’t have data on this but we’re hearing from dealers that there is more for the customer with lower income, there is more credit reject approval but we don’t have any hard facts on this. It’s more anecdote that we’re hearing from dealers. But except that, Mark, we don’t see any change. Obviously, the household income is still higher than it was pre-COVID. The new entrant, same ballpark but it’s more the entry — the lower household income customer who has more difficulty to finance their product with the high interest rate. And I think the banks are more restrictive than they used to be.
Operator: Next question will be from Tristan Thomas-Martin at BMO Capital Markets.
Tristan Thomas-Martin: Of your kind of your fiscal ’24 guidance for revenue, how much of that is [indiscernible]?
Sébastien Martel: I’m not sure I understand your question.
Tristan Thomas-Martin: I mean how much of that is either incremental, new product launches or channels so…
Sébastien Martel: Well, the — as I said, the inventory — the plan for inventory in Q4 versus Q3 would be the flat to up single digit. The channel fill is going to happen more with the new products that we launched in side-by-side and the high-end side by side. So the Maverick R is obviously something that will be channel fill. The new ATV platform as well is where we’re going to be seeing more deliveries from obviously, there is some replenishment that’s happening on the ORV side. But that’s the main driver of Q4 wholesale.
Tristan Thomas-Martin: Okay. And I just want to follow up to believe with James follow-up as a follow-up. Is just kind of like your playbook is, let’s say, the industry gets a little bit softer than you think or the competitors get more aggressive? Is it fair to assume that you would rather slow shipments then continue to ship and then have to subsequently promote?
José Boisjoli: Yes. I would like to remind that we’ve been through those cycles many, many times and I’ve personally been through a few of those over my 30 years at BRP. And one thing we’ve learned over time is when you see the situation develop, you’re always better to be proactive. And we’ve been gaining share since fiscal year ’16. We have developed an incredible value proposition for the dealers and we want to protect that. And this is what we’re doing. We just proactively — we’re just proactively reacting to a softer demand to make sure that we protect that. And we’re convinced this is the right thing to do for the long term.
Operator: Next question will be from Sabahat Khan at RBC Capital Markets.
Sabahat Khan: I’m just following up on kind of the dealer inventory question from just earlier. I guess you said you wanted inventories to ideally be lower kind of by the end of next year. I guess, can you may be shed a little bit of color on is that really if demand plays out or going to expectations? What are dealers telling you in terms of their plans for fiscal ’25 in terms of do you have a magnitude on how much lower they would like inventories to be, given the floor plan financing costs? And maybe just kind of the follow-up is, are there any incentives or ways you’re looking to help them with the plan financing cost if the current rate environment continues?
Sébastien Martel: Yes. First of all, the situation is not bad in the network. And we’re in better shape than pre-COVID as we talked earlier in the prepared remarks, inventory is up 24%, yet our retail is up 43%. However, dealers have seen price increases, MSRPs have gone up and so the value of the inventory is higher. The mix as well is more richer. So we sell more high-end models from — in all product categories. And the product-mix as well is different. There’s a lot more side by sides with higher MSRPs, more switch as well. And so despite the dollars increasing by 24%, the value is up 50%. And so when you factor in as well a financing cost that is probably increased by 300 basis points for the dealer, they’re seeing the impact of a monthly for [indiscernible] And so that’s why we want to be diligent in managing the inventory, especially in the current economic context.
We do support our dealers with a [indiscernible] plan period and we do support dealers as well when we come out of the season and there’s more inventory. And so we’ve been active in the past to do this and we will continue going forward. And so we’re — we want to make sure that we manage that inventory. So there might be a reduction of inventory in, let’s say, in the low-teen percentage for next year, that would be a nice number to achieve. But again, the situation today is not a disaster. It’s very much — very healthy when you compare it to pre-COVID.
Operator: Next question will be from Brian Morrison of TD Securities.
Brian Morrison: Many of my questions are asked but I want to ask about what you’re seeing in terms of price in the used market? I think the question was posed earlier, I didn’t understand the answer. There’s obviously been some softening this year but are you seeing acceleration in October and November? And if so, what do you see is the magnitude [indiscernible] decline in used prices?
Sébastien Martel: Yes, we do have a bit of visibility on the used market but the used market is still healthier than pre-COVID. The gap of new to use has increased. I mean it was almost zero during COVID. Now it has increased. But someone looking into trade in a used product, will get a good value because MSRPs have gone up quite a bit in the last two to three years. So — and plus, there hasn’t — there’s been a shortening of supply in the last two, three years. So there’s not actually a big used market contrary to what people might expect. And so it’s still very healthy, Brian.
Operator: Thank you. And at this time, Deschênes, we have no other questions. Please proceed.
Philippe Deschênes: Thank you, Sylvie and thanks, everyone, for joining us this morning and for your interest in BRP. We look forward to speaking with you again in March for our fourth quarter conference call. Thanks, again, everyone and have a good day.
Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.
