Brandon Rollé: Good morning. Thank you for taking my questions. Just quickly on inventory. Could you talk about your appetite for taking on more new inventory in the back half of the year maybe versus pre-owned inventory given current retail fundamentals?
John North: Good morning, Brandon. Nice to hear from you. I think we are really focused on a couple of different things. Inventory is a very broad bucket. What I mean by that is we stock everything from a $40,000 stick-and-tin towable trailer up to $800,000 or $900,000 Class A diesel pusher with a tag axle. And so I would say, as it pertains to new, I think it’s different. We’ve certainly seen a little bit more slowdown on the motorized side of things. I think that, that had been undersupplied longer than the total and fifth wheel segments just given supply chain issues around getting chassis and that sort of thing. And so as I think about the last couple of quarters, I would say, we’ve seen less of a slowdown externally. But I would say, as it pertains to consumer demand, the channel certainly has caught up, which I think was a slower catch-up than we saw on the towable side.
So I think we’re being prudent there just in terms of moderating. We are certainly thinking about trying to run with a lower days supply. You saw that we sequentially improved in Q1 to Q2 in terms of days supply. And so we’re thoughtful around that. And then, in particular, trying to be cautious with a lot of the 2023s coming and now the 24s around the corner. I don’t anticipate significant changes in either direction. I think you’ll see us maintain inventory. We do need to start ordering up. One-third of our business is in Tampa, and the Super Show is a gigantic event for us in January. And so we need to be ordering now to take that stuff in and given the lead times required for some of that, motorized product in particular, to stock up for that.
So I don’t anticipate big changes there. On the used side, it’s a good call-out and thank you for allowing us to talk to it, we’ve grown our used inventory. From memory, Kelly, I think, $15 million so far. And that’s been a very concerted effort. That obviously – we don’t borrow against all of our used inventory. We tend to pay cash for it, and then Florida is required. And so our operational cash flow has also been optically lower than it would have been if we hadn’t been building used inventory because we didn’t put the associated flooring on for it. But we’ve made a concerted effort to stock more used. We do think that there is more healthy underlying demand there because of the affordability topics we’ve talked about earlier. And frankly, I think there’s more of a market to be had there.
And so we’ve leaned into that. We’ll see if that grows. Some of it’s market-dependent. What’s for sale, can we find things purchase them attractively relative to where the market is today, which is really, I mean, literally a piece-by-piece decision. Our wholesale team and our operational leaders buy those actually unit by unit. And so it’s hard for me to predict if that’s going to build or not. If there are opportunities, we’ll take advantage of them. And if they’re not, they won’t. But in general, I’m pleased that we have more used inventory in inventory. It’s interesting. I mean 50% of our used inventory turns in less than 30 days. So there’s really healthy demand for that in the marketplace if you can find the right pieces, and so we’re focused on that.
Brandon Rollé: Great. And just quickly on the used market. What are you seeing in terms of used inventory availability? And then maybe just overall competition maybe from other retailers to procure those used units?
