Michael Yates: Well, so I’ll answer that. It’s normalizing. It’s normalizing. So, we’re working on. Things are getting better, but we don’t believe that our retail partners are fully stocked at a normalized level yet.
Anna Glaessgen: Got it. So I guess when would you expect sell-in and sell-through to become more balanced?
Michael Yates: We’re actually seeing sell-in improve on a year-over-year basis, week-over-week basis here in the first quarter compared to first quarter last year. And as Warren just mentioned, I think that’s starting to take hold here in the first quarter, first half of the year, and hopefully that normalizes back half.
Warren Kanders: You’ll hear from Neil, and I don’t want to steal his thunder about the changes that he had made. But what I can say is that our people are on it now, and we are actively pointing out to our retail partners where they’re short, and we’re pushing them to fill out the assortments in their shelf. And that seems to be working. But everybody is cautious right now. So I think that’s part of it. But our view is that we’re looking forward to a great summer, and we think that the fill-in will accelerate. And we have the right inventory to achieve those goals. I think you’ll hear about that.
Anna Glaessgen: Got it. And turning to some of the commentary around Promotionality and DTC specifically, is that a function of mix? I know that’s skews more toward apparel and footwear than the wholesale exposure, or is that a function of closing some of those retail locations and just clearing that inventory or something else?
Michael Yates: It’s more in the market place for apparel [ph].
Warren Kanders: Mike? Mike, do we hear you?
Michael Yates: Did you hear my answer? I’m sorry.
Warren Kanders: No, no, we lost you, Mike. Can you just say?
Michael Yates: Oh, I’m sorry. I said it’s the former, Anna. It’s the apparel, the promotional pricing in the marketplace for apparel right now. All throughout Q3, Q4 was extremely strong, and that’s really the main driver.
Anna Glaessgen: Got it. Looking forward to Monday. Thanks, guys.
Michael Yates: Thanks.
Warren Kanders: Thanks.
Operator: Thank you. One moment for questions. Our next question goes from Mark Smith with Lake Street. You may proceed.
Mark Smith: Hi, guys. First question, I just want to confirm
Warren Kanders: Hi, Mark.
Mark Smith: . Hey. The EBITDA guidance that you guys gave for ’24 here, that is stripping out and excluding all of your one-time items, including the legal expense expected and some of these lawsuits. Is that correct?
Michael Yates: The EBITDA guidance, the $16million to $18 million full-year guidance does not include significant costs associated with the legal costs. That’s what I said in my statements, in my prepare remarks.
Mark Smith: Okay. And then it sounds like on Monday, you guys will walk through a little bit some of the corporate overhead as well as kind of total SG&A outlook. But does it seem like in the near term here, this kind of $30 million range on total SG&A seems like about the right range here in the near term?
Michael Yates: Yes. That’s a little high, but it’s a little less than that, but you’re in the ballpark.
Mark Smith: Okay. And then the last question for me was just, if you can call out, I haven’t seen it yet, or maybe I missed it, impact from FX and currency here in the quarter and then kind of your outlook, if you will, for ’24?
Michael Yates: Well, the comments I made in the prepare remarks at FX was completely immaterial during the quarter, during the fourth quarter. Our forecast for this year is based on exchange rates here from a few weeks ago. So it’s not significantly different than what kind of the business has been functioning at throughout the third and fourth quarter of this past year.
Mark Smith: Excellent. Thank you.
Operator: Thank you. I would not like to turn the call back over to Mike Yates for any closing remarks.
Michael Yates: Thank you. Thank you for your interest in Clarus, and we appreciate everyone’s questions. And we look forward to spending more time with you next week in New York City for our Investor Day, where both Warren and I are excited to have Matt Hayward speak in depth about the Adventure business and Neil Fiske to spend equal time walking through his plans and vision for the Outdoor business. So we thank you for your continued interest in Clarus and look forward to speaking and seeing many of you next week in New York.
Operator: Thank you for your participation. You may now disconnect.
Michael Yates: Thank you.
