James Duffy: Okay. Thank you. And then just a broader question around Precision Sports. You’ve demonstrated the economic rationale for owning these businesses, certainly. That said, the message had been that you were a small player in a large market and share gains could support the top line through the market cycles. And the ammo opportunity was kind of a key component of that message. I guess I’m trying to understand, is this simply a cyclical business from here forth? What was the miscalculation with respect to ammo? Why is the business proving more exposed to the cycle than you had initially thought?
Aaron Kuehne: Yes. That is primarily driven by the inability to consistently deliver a whole range of ammo product that enables us to have a programmatic business with these different retail partners. In essence, we are going out and resetting the line every month based off of when we get components in place and can actually produce the product. As a result, it really makes it more of an ASAP or an opportunistic-type model versus something that is based off of a program, which is really where we need to be especially in an environment like this, where there’s a lot of promotions, there’s ample opportunity and availability of product. And the feedback that we continue to receive from retail partners is they really like how we’re positioned, in particular, the Barnes brand.
The Barnes brand is definitely best in class, it is well positioned, it’s premium positioned, and also has a high level of sell trough. This is a matter where you got to be able to be more consistent or easier to do business with by being able to have these — availability on a more consistent basis, in a more leveled manner, not in massive ways. And that’s why the supply agreement is key and very important for us and why it also gives us confidence that we’ll be able to see a better run rate on the business as we head into 2024 because we’ll be able to start to develop and execute on this program.
James Duffy: Okay. That was very helpful. Thank you.
Aaron Kuehne: You bet.
Operator: One moment for our next question. Our next question comes from Matt Koranda with Roth MKM. Your line is open.
Matthew Koranda: Hi, guys. Good afternoon. Just a follow-up on the guidance. It sounds like the incremental weakness related to the guidance kind of coming from Outdoor and Precision Sports pretty much entirely. But I just wondered if you could maybe help quantify exactly where the cuts are coming from at the midpoint of the guide for both revenue and EBITDA.
Michael Yates: Well, the midpoint is obviously $392.5 million and the $46 million of EBITDA compared to the $420 million and the $60 million, right? Obviously, you got to take in the first half miss, right? We’ve missed the first half [Technical Difficulty]. So obviously, that flows through. The destocking that we’ve been talking about and the promotional environment, the destock in BD and North America Adventure, along with the promotional environment in Precision Sports, that really picked up here in the second quarter, and we see that taking us through hunt season, right? That’s really the — those are the main components of where the drop from the $420 million guide to $392 million at the midpoint — $392.5 million and the corresponding EBITDA on that, right?
As the Precision Sports business comes down and the promotional environment there, as well as the destocking at BD, which has been quite promotional as well, that’s where — that’s really the culprit for the drop in the guide.
