John Walbrecht: Yes, very astute on that. That’s one of the — obviously, when we look at the year as a whole, there are areas we were form that we couldn’t accelerate the business as we had previously hoped and some of it not in our control, which we talk about, whether it’s air ship and supply chain or it’s FX headwinds or whatever. But as you’ve caught on, the true demand for the brand typically shows up in key growth categories or it shows up in key growth geographies, which we’re seeing in Europe and ICD or it shows up in key growth channels, which could be direct to consumer, it could be specialty. And when you see the mix, the mix gives you a sense of, as you’re saying, what is really the demand for the brand today versus the marketplace.
And that’s why, albeit we’re guiding conservatively because we’re going to have to in 2023 chase certain channels, certain geographies, certain product lines, right, even certain brands or segments and we will do so, and that’s our commitment to it, it won’t be an easy layup that every category, every brand, every channel, every geography sees the same upside, right? And that’s going to be the challenge for every brand in 2023.
Ryan Sundby: All right. Thanks for the questions.
Operator: Thank you. Our next question comes from the line of Matt Koranda with Roth MKM. Your line is now open..
Matt Koranda: Hi, guys. Good afternoon. So just wanted to spin back to the guidance one more time, just to make sure I understand. So I mean the simple take for me, you’re guiding revenue lower by about $30 million, just a tad less than that. EBITDA almost shrinks by about three And I think that implies that you expect some margin improvement, but there’s going to be some puts and takes underneath the surface from a segment level, and it feels a little bit like maybe we’re relying on a bit more contribution from the Precision Sports segment, just given that higher margin. And so that mix shift should be helpful. Am I thinking about that in the right way? And then are there other areas? You did talk about 100 bps of gross margin improvement. But where do we see, I guess, opportunity to cut on the SG&A front? Because it sounds like the guide also implies a bit of SG&A cut as well.
Mike Yates: We’re not talking about cutting a lot of SG&A. I mean, there’s a few opportunities perhaps maybe in the Adventure segment. But year-over-year, the SG&A from 2021 to 2022 was actually down at the Outdoor and Precision Sports business. So I mean SG&A is pretty tight. We spent back half of last year focused on expense control and generating cash and rightsizing inventory. We’re not going to get into the details of where we — my comments around — Matt, around where we see that from a segment perspective or there more opportunity or less opportunity for this segment or that segment. We’re going to lean — we think — we’ve made investments. All three of them, like I said, have different headwinds, different tailwinds.
We’re going to lean into that segment where we see — where we can achieve the growth, right? And with the difficult environment today, whether that’s the consumer or the macro interest rates because interest rates do inflate a bigger impact, especially in Australia because of the way their financing works down there. So we’re going to lean in where the opportunity is. And we’re only 60 days away from reporting Q1 again. So we’ll talk. We’ll have more to say in 60 days.
John Walbrecht: We’ll say, Matt… Q – Matt Koranda And on the…
