Dave Foulkes: Yes, depending on the brand. I mean I think Fort Lauderdale will be a good pointer for premium. So first day was very encouraging for us. We’ll see how the rest of the show unfolds. And then as you get into the balance of the year, obviously not much going on in December but really early January you get into quite a lot of aluminum shows, so there’ll be a good indication of what buyers are feeling at that point in time. And then late January to early February we’ll see more fiberglass, particularly on the premium end.
Joe Altobello: Got it. Thank you.
Operator: Our next question is from Scott Stember with ROTH MKM. Please proceed.
Scott Stember: Good morning. Thanks for taking my questions guys.
Ryan Gwillim: Hey Scott.
Scott Stember: On the parts and accessory side can you talk about what retail POS is looking at – looking like? And maybe parse that out RV versus boat?
Ryan Gwillim: Yes, I can take that. We still have limited POS information from various retailers. I’d say on the marine side, kind of on the traditional marine side Scott, we’re seeing kind of retail and wholesale matching. We’re seeing dealers take the inventory they need at the end of the year to winterize product and obviously in the southern hemisphere to keep folks on the water. So again, U.S. products was up 10% in the quarter and only a bit of that is price. So a lot of that is really nice strong demand and filling channels ahead of kind of the end of the season in those places where there is an end of the season. For kind of more retailers and that is primarily, we see that in the Navico Group. We believe that their inventories are right size as we enter the holiday.
So we’re seeing pretty strong point of sale there certainly on the new products that Navico’s come out with. I mean to really drive retail ahead of the holiday new products is key and we continue to see good performance there. Obviously we said it in the release but the holiday season is a big time for Navico. They’re preparing and getting the right inventory in the dealer and retailer hands and we would anticipate a pretty strong performance.
Scott Stember: All right, just last question. One of your competitors in the recreation and leisure space offroad vehicles did mention earlier this week that they’re seeing or at least they’re hearing from the lenders that there is a slight tightening going on with lenders looking more heavily at things like debt to income ratios. Are you seeing that tightening in your markets at all?
Dave Foulkes: You’re talking about retail financing, right?
Scott Stember: Yes, yes.
Dave Foulkes: Customer, credit scores and – yes, I think the spreads are higher. So I think getting to the kind of 9%, pretty good FICO score. So I think we probably are seeing a bit of better increase in the spreads. I wouldn’t say it’s particularly noticeable at the moment. We could get some more detail on that. But yes, I think that’s probably true.
Ryan Gwillim: And we are just continuing to see an influx of people bringing cash up and down the whole spectrum, including premium. So that is one that we continue to see.
Scott Stember: Okay. Got it. All right, that’s all I have. Thank you.
Dave Foulkes: Thank you.
Operator: Our next question is from Mike Swartz with Truist Securities. Please proceed.
Mike Swartz: Hey guys. Good morning. Maybe just following-up on Joe’s question around order books for 2024 – model year 2024. And I know we’re very early in the show season. But maybe is there any sense or any range you can give us of what those maybe early commitments have looked like versus at the same time last year?
Dave Foulkes: Yes. Hi, Mike. They’re strong. We have very solid order banks across all of our brands at this point in time, and I would say very similar across most brands to last year, or at least, if not last year, at least in line with our expectations of what’s appropriate for this year. So we go through looking at percentage of fulfillment and you probably know we go on a trimester basis here. So right now we’re looking at the kind of first trimester orders, but also the point of full year. But I would say that I don’t have the latest numbers, but I think we are aligned pretty well now and have very solid orders from all of our dealers.
Mike Swartz: Okay. And then with the – the new labor agreement up in Fond du Lac, just a broader question for 2024. I mean I guess how should we think about the cost environment? Is it still going to be fairly inflationary? Or are you seeing any – the cost curve flatten out or maybe even seeing any benefits as we go into 2024?
Dave Foulkes: Yes. I would say that overall, I think the environment is turning much more favorable for us in terms of supplier pricing. Supply is willing to take willing to offer discounts willing to offer lower prices to us, commodities obviously have come more in line with historical norms. I think our labor cost increases will be very novel. So nothing kind of out of the ordinary for next year. So I would say, overall, the cost environment is going to be constructive for us, and we’re putting a lot of resources in that area right now, I would say making sure we’re very actively working with the supply base to get the best cost, evaluating alternative suppliers. So yes, we will work very actively in that area. And I would expect overall for that to be constructive for the year.
Ryan Gwillim: Yes. And every division has cost takeout programs and plans target for the year, not just at the OpEx level, but ways to bring COGS [ph] down as well. So back to the earlier question on what strings do you pull in a tough economic time, looking at programs at the gross margin line can be equally as important to just raw cost takeout at OpEx.
Operator: Our next question is from Matthew Boss with JPMorgan. Please proceed.
