Fred Wightman : Okay, thank you.
Operator: Your next question comes from Joe Altobello from Raymond James. Please go ahead.
Joe Altobello : Thanks. Hey, guys. Good morning. I guess first question is on the inventory. I’m trying to figure out how much below optimal your network inventory situation is? I think you mentioned it’s about 8% below where it was in fiscal ’20. But given your retail growth, where should it be or maybe act another way where a dealer turns today? And where should they be? It seems like there’s still a channel fill opportunity. So any color, you can provide, that’d be helpful, thank you.
Jose Boisjoli : Then if we give you, and that’s always at the end of Q4, then it’ll give you a sort of some colors. On the ATV side, we’re about 20% in units, we’re about 20% below COVID pre-COVID. But in days, because we’ve been growing so much during the COVID. During the last two years, we’re — in days we’re minus 40% versus pre-COVID. On side-by-side we somewhat equal in units, but we still have a number of days 50%. Because then when we look at the growth we had, you just need more inventory to fuel the retail. For watercraft entry wheel, we slightly above pre-COVID volume because of the model year ’22. But the preorder for watercraft is like four times the COVID numbers and three-wheel three times pre-COVID number around slow.
Season ’23 will end at the end of March, we believe it will be at about the pre-COVID volume. Booking with the year is on plan and the tracking for preorder to consumer is also tracking to more normal. And when we look up all this, we feel confident that we are in the right position with inventory by product line. And in terms of the filling the pipeline should be done by the end of Q1.
Joe Altobello : Thank you, very helpful. Maybe a follow up on M25. You mentioned earlier, that you’re tracking well there. Is that still — even with the higher interest expense and higher depreciation and you mentioned a $1.35 per share, are we still looking at a $14 number in fiscal ’25?
Sebastien Martel : Yeah, obviously, we have solid momentum. We have exciting product news coming out this year next year. And so we’re in line to deliver on our ’25 commitments of $13.50 to $14.50 EPS in fiscal ’25.
Joe Altobello : Okay, great. Thank you, guys.
Sebastien Martel : Thank you, Joe.
Operator: Your next question comes from Jamie Katz from Morningstar. Please go ahead.
Jamie Katz : Hey, good morning, have just one quick one. I know it was mentioned in the prepared documents that there were still production efficiencies and higher production costs. And I’m curious how you guys expect that to play out over the course of the year, given that the hands could be sort of lumpy laughing the introduction of the switch? And then also the closures or this slower manufacturing maybe at certain points in fiscal 2023. So I guess how does the expense leverage or pressure sort of play out over the course of the year?
Jose Boisjoli : Well, we seen some favorable results in the fourth quarter coming from the turbulence. So year-over-year that was favorable. So that’s expected to continue in Q1, because Q1 last year was the more challenging quarter from a supply chain point of view. So we’re expecting some benefits to materialize this quarter already.
Jamie Katz : But the back half, theoretically, could be much weaker on the top-line. And so maybe there is a little bit more pressure at least from a growth perspective.
Jose Boisjoli : There could be a bit of pressure, but overall, we’re expecting solid quarters throughout the year. And so, again depending on how the end of the year materializes, but there’s obviously going to be a big benefit coming from the lower turbulence in all fiscal ’24.
