Mark Smith: Yes, asking, are you starting to see any signs of maybe some slowdown in demand, maybe if you speak to what you do in backlog of orders ?
John Walbrecht: Yes. So we came out of SHOT Show the two trends we saw and continue to hear from both the OEM partners, which is a significant portion of our business, as you’re aware, which is loading for either military or law enforcement under contract, or even the commercial side, is continued demand for what we call the big 8 cartridges, which start with a 2 70 and go all the way to 3 0 8s and everything in between. And then for us, the big demand around things like 3 3 8s from a global international conflict perspective. And so as we said in the prepared remarks, we’re going to over-index into those products, channels, geographies where the demand is still accelerating and we don’t see a slowdown in centerfire rifle. But again, it’s caveated by how many shell cases we can acquire as fast as we need them.
Our order book is back up to the demand levels we saw coming out of Q3 and Q4. So we’re very positive about that. And I think, again, the Super Fan nature of Sierra and Barnes is that we have a unique positioning in the market. And it’s super difficult to replace those 2 brands and what they offer in product.
Mark Smith: Okay. And then can you talk about any commodity pressures or easing within Precision? And also, are you starting to see any better availability in brass casings or primers or any other components for loaded ammo?
Mike Yates: So that message is the same, right? The sourcing of components, specifically the case is, Mark, is critical. That is the wildcard. That store is no different than it’s been throughout 2022, right? The more cases we can source, the more conversion of bullets that we can convert over to ammo, right. That’s the wild card, right? The demand for the centerfire rifle is seeing strong, as John just alluded to, because of the big eight calibers that we’re focusing on. And we’re not focusing on pistol and revolver, with nine millimeter. With regards to commodities, copper is about $4 a ton on the LME right now, and that’s right around our where we’d expect it to be from a standard standpoint. So we don’t see a big headwind or tailwind either way right now from a commodity .
Mark Smith: Okay. And the last one, I just wanted to dig into just apparel and footwear. And sorry that I think I missed it. Can you give maybe the growth numbers again that you saw for the full year in those segments or anything else that you can kind of quantify for sales and the strength that we’re seeing there.
John Walbrecht: Yes. We had 31% growth for apparel for the year, 15% in the quarter. We continue to chase demand and growth in footwear, and we don’t see either of those categories slowing down in 2023. Obviously, they’re not the predominance of our business. But I think even more exciting is the level of apparel growth we saw even through our D2C. D2C was up, and apparel was up even more than our D2C growth. So we continue to see strong interest and strong demand for these new categories.
Mark Smith: Excellent. Thank you.
Operator: Our next question comes from the line of Linda Bolton-Weiser with D.A. Davidson. Please proceed.
Linda Bolton-Weiser: Yes. Hi. So I think that when you were talking about your expectations for inventory, your own inventory at the end of the year, I thought you had said something like $143 million or so. So you got really close to that, but it was still a little bit higher. So I’m just trying to kind of marry that thought with the idea that you had this Precision Sport inventory reduction that impacted gross margin. So was there some other inventory reduction that you had hoped you would do that didn’t quite get done in the fourth quarter? Or like, I mean, why wasn’t inventory performance even more — why wasn’t it even lower, I guess, at the end of the year?
