So we’re not in a rush to have money leave our vault at a level that we believe we could deploy that later and get better. The goal is always going to be to do acquisitions. That’s the blueprint of our company from the beginning of time and whether it ends up being 25 stores or 35 stores or 18 stores, it always needs to be smart, profitable and accretive. Got it.
Tristan Thomas-Martin: I missed this, but how was OEM promotional support in the quarter and then how’s that been trending so far in 2Q.
Marcus Lemonis: We didn’t really have that much promotional support in Q1 like we did in Q4 of last year because we had taken the bulk of our bath back then, but manufacturers have always been helpful, particularly Thor, Forest River and Winnebago have always been helpful in addressing it. We want to always find the balance and the balance is, I’m not going to take money if I need to buy more inventory in exchange for it. We don’t want to get hooked on, on that drug, where you have to buy something to get something. We want you to help us with the product we bought, and the period needs to be at the end of that sentence. And then we want to make good inventory purchasing decisions that are separated from that assistance. So we did not have much in the quarter at all, Tom.
Tom Curran: No, not much at all.
Matthew Wagner: And just as well. We like the manufacturers in a healthy position and continue to maintain and innovate their products just as well. So never do we want to take needlessly just any sort of promotional support, knowing that just as well, we can both be profitable together as we pursue certain price point segments which we worked very well with, especially the three entities that Marcus has named already, Thor, Forest River and Winnebago, to continue to target those segments.
Marcus Lemonis: Yeah. One more thing just to point out on top of that, and I think Matt alluded to it. We’ve also invested, and so have they, in launching some exclusive locations and we have, I think, how many we have now total?
Matthew Wagner: We just launched five within this segment or within this period? I think we’re up to eight now.
Marcus Lemonis: Yes. So the exclusive locations that we’ve launched, and whether that’s grand design of Green Bay or Keystone of Northern Michigan or whatever it may be, are performing really nicely and I think we’re learning that the future growth of this business, in addition to Camping World stores, we may have cracked the code on a way to have incremental store growth and incremental acquisitions with a lower cost of capital deployed to do those deals, not building out big retail stores. They’re not on 20 acres. They don’t take on big rent factors. So the true rollout on those is pretty good. The return on investment has been pretty spectacular in those areas, and I would expect this to continue to double down on those. The manufacturers are spending some money on that.
So when you talk about a system, assistance from manufacturers can come in the form of training, which they’ve all been amazing, investing in parts and service systems, which they’ve all been doing, investing in aging processes, which they’ve all been doing, and investing in this exclusive store concept. We couldn’t be happier with the partnerships and the participation that the three core manufacturers have provided; not only our company, but we believe the other dealers as well.
Operator: Our next question is from the line of Alice Wycklendt with Baird. Please go ahead.
Alice Wycklendt: Hi, guys. I’m for Craig this morning. Thanks for all the commentary so far. I think just one question. I wanted to dig in on the new margin side. I think the gross profit dollars came in around 5,400 per unit, gross margin percentage just under 14%. Sounds like there maybe weren’t any significant transitory factors from OEM support in the quarter. But how should we think about that number through the balance of the year?
Matthew Wagner: I think that this is largely indicative of what we normally see in the first quarter of most years. If you look at pre-pandemic margin levels. So I would suggest then that for the next two quarters, probably could bump up around that 15% range, if not a little bit higher, depending upon what that general mix is of inventory and then generally the fourth quarter kind of settles in once again a little bit lower, but perhaps like 14.5%, give or take.
Marcus Lemonis: To your point, Alice, there was no manufacturer assistance putting that number at 14%. That was true performance, I’m hoping and I think Matt and I are definitely on the same page about this. As we work through the last three thousand eight hundred twenty three s and we sort of shrink that down, that is really what could prop it up to 15%. I think 15% is probably a good number for 2Q and Q3. We obviously still want to take care of the customer. We still want to actually grow market share and then as you get back into the fourth quarter, it’s going to fall back down again because we want to clean inventory, going into the end of the year, things are a little quieter. You have to incentivize the customer a little bit more.
But we’re feeling good about where our new margins are. We always want to have more. One of the downsides of driving ASP’s down is even though you open up the dam and you find more people, the total gross profit dollars on the front end, when you lower ASP, even when margins are good, they’re a little lower. So hopefully over time, as interest rates come back down and affordability becomes a little easier, those ASP’s could start to rise. 1,000 here, 1,000 there, and get us back to where we think it really should be, which is right around that $39,000 to $40,000 range.
Alice Wycklendt: Perfect. Thanks for the color.
Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session. I would now hand the conference over to Marcus Lemonis for his closing comment.
Marcus Lemonis: Great. Thank you so much for joining the call. As we continue to deal with the headwinds, we want the market to understand that we are very disciplined about our balance sheet. We’re very focused on delivering on the results and we thank you for your support. So we’ll see you on the next call. Take care. Thank you.
Operator: Thank you. The conference of Camping World Holdings, Inc. has now concluded. Thank you for your participation. You may now disconnect your lines.
