And so the discussions have been really focused on just the underlying economics and how we can all partner together. But as a result, it also has created this overhang that they continue to work through from a working capital and just overall liquidity and availability perspective. That’s something that started to rear its head in Q2, Q3 of last year and has continued to be a headwind for us over the last four quarters. Now one thing that we are starting to see is that those pressures are starting to subside. There are still certain categories that are a pretty massive overhang for folks that they anticipate will be an overhang over the next — anywhere from a year to two years. [indiscernible] enough for us, those are not categories that we participate in, but it does naturally constrain how they think about open-to-buys and just the weeks of inventory on hand that they hold.
And so as a result, for us, the discussion that we’ve also been having is just how we, as a collective group, manage these dynamics but also how we support them with making sure that we have inventory availability, but also helping to support them with sell-through, while also continuing to build our brand through our own channels and really bolstering up our own business through our own efforts. And so I think as it specifically relates to our brands, I feel like we’re in a good position. But there are going to be some just natural overhangs that continue to persist through the course of this year. And then I think as we get into 2024, it will be more normalized, recognizing that there will be certain categories that will just continue to be a problem child, but not something that should negatively impact overarching open-to-buys and also liquidity positions for these retail partners.
Randal Konik: Great. Maybe lastly, can you give us some perspective by division, by segment on how we should — how you’re thinking about incremental — or go-forward promotional posture from here? Just curious on where you’re seeing it going to get less bad, get maybe perhaps worse. Just give us a little more granular color there would be very helpful.
Aaron Kuehne: You bet. So, on the Outdoor segment, we’ll continue to see some promotional levels through the course of the year. We do anticipate that it will get sequentially better based off of the inventory levels in the channel, and just what we’re seeing is people are now transitioning to a different season and starting to annualize a lot of the noise that we’ve all experienced over the last four quarters. On the Adventure side of things, we’re also seeing much healthier inventory levels was enough both in Australia and here domestically. Our retail partners don’t participate in private label, and so they came into the headwinds and a cleaner position. We have supported them in a pretty substantial way in moving that inventory through the system.
And as a result, there’s a little bit of carryover that will still persist through Q3 and maybe into Q4. But we actually feel that we’re in a pretty good position as it relates to just the promotional environment and how we’ll participate in that. And I think that commentary is supported by what we saw also with our gross margin improvement, both in the Outdoor space, but also in Adventure. Despite these overhangs, we are seeing still margin improvement because of the different productivity and efficiency initiatives that we’ve been able to drive through. The one segment that could continue to see some overarching headwinds is that of Precision Sports. We are getting feedback from retail partners that they do expect that the hunt season will help recalibrate this and start to pull through inventory so that the promotional environment doesn’t need to be as pronounced as it has been over the last two quarters in particular, but also as we head into the election cycle, that should also help normalize and bring to equilibrium the different dynamics associated with inventory.
