Matthew Koranda: Okay. I’ll take the rest of those offline. And then on the — specifically as it pertains to the Outdoor segment, it just seems like we’re going to end up almost flat in the second half this year versus the second half of 2019. But the D2C business, just given some of the stats you guys have thrown out, it seems like it’s grown quite a bit. So I’m just wondering how are we thinking about share in wholesale, are we losing share? Are we intentionally exiting certain customers? Is this where the overall product space is just kind of flat relative to 2019? How are you thinking about share at wholesale for Black Diamond in particular?
Michael Yates: I don’t think we’re losing share at all at the wholesale level. I think it’s just the destocking Aaron mentioned, the need for some of our big retail partners to move their own branded private label stuff, right? And our demand that we see for — through our D2C business — our D2C business was up 28% in the quarter. So our brand, we still believe is quite strong. We’re seeing the negative impacts from the destocking, right? And that’s gone on throughout the first half of the year and as we continue to see it as we speak. So as I’ve mentioned in the last call, we needed to see that stop. We needed to see shell casings come available, which we’ve made great progress, right? But we won’t get full benefit of that until first quarter of next year.
In Adventure, we think, it’s stabilized, right? We think the worst is behind us for that business. So I think that’s how — that’s why our focus, frankly, is on right-sizing the balance sheet, right-sizing inventory and be in a strong position, both from an operational and a financial stability to grow the business in 2024.
Matthew Koranda: Okay. You mentioned inventory, Mike. Maybe just talk about sort of where we’re — how the inventory breaks down in terms of the 2Q balance just between the segments? Are you a little bit heavier in one particular segment or another? It sounds like you’re signaling you’re going to be more promotional in the Outdoor side of things, so probably clearing a little bit more.
Michael Yates: The promotional , that is the environment that we’re seeing, both across the entire portfolio, frankly. But what we are seeing, as I mentioned, to just an earlier question, but there’s about $80 million of inventory at Outdoor that was expected to spike up. As I said that — I signaled that 90 days ago, we take possession of that inventory as of June 30 is at least [indiscernible] and we’re taking possession back here in the States now, and we’ll get it to our customers here, so they can put it on their shelf, hopefully, after Labor Day. Precision Sports has about $40 million, $41 million of inventory between the two businesses. That’s a little higher than our target, but our target is $18 million to $20 million in each business [Technical Difficulty] of inventory with about a third of that here in North America and the remainder over in Australia.
So that’s the landscape of our inventory position. From an Outdoor, we are looking to reduce that by 15%. That $80 million should be in the high 60s by the end of the year. It’s a focus we’re laser focused on with the — we review it every Wednesday morning with the BD team and the glide path to get to the high-60s for inventory at Black Diamond. And then we’re right-sizing and focused on the same thing at Adventure. The team has been focused on bringing down inventory, working on product changeover as new products or sunsetting old products, introducing new products and managing that inventory here in the fall, especially in Australia. Aaron mentioned, we’re introducing new product, new platform [indiscernible] and then that product will come to the North American market in 2024.
