Brett McGill: Yes, I think it’s probably – yes probably right, Joe, a little memory. We always had programs at certain times of the year we’re seeing that same thing. Probably just feels like we haven’t seen them in a few years. But I’d say this feels historically normal to us.
Joe Altobello: Got it. Okay. And then in terms of SG&A, you talked about the items that kind of drove that increase year-over-year. I guess first, what surprised you on the SG&A front? And maybe second, where do you see, and I know you’re going to talk about some of the savings, I guess on the next call, but where do you see the biggest opportunities on the SG&A front?
Brett McGill: I guess if I say a surprise, I’d say the inflationary environment just continues to ripple through bigger than we were expecting. Whether again its property and casualty insurance renewals, our health insurance continues to run hot [ph] other elements maybe even mention something as small or like audit fees. I mean, everything out there is everybody’s feeling increased inflation still even at the service, well, all those I just mentioned at the services level. And then your second point, Joe, was more on what we’re doing in the future. Is that right?
Joe Altobello: Yes, the biggest opportunity is kind of high level.
Brett McGill: You know what I think we’re going to be looking at as I mentioned payroll and payroll related items, marketing spend and efficiency there for sure. Location optimization, just all different aspects of the business, much broader than we had originally started looking at. And part of that is just the reality of where the industry is today. The industry softness is greater than we anticipated when we started this fiscal year.
Joe Altobello: Thank you.
Operator: Thank you. Our next question is from the line of Fred Wightman with Wolfe Research. Please go ahead.
Fred Wightman: Hey, guys, just to follow up on that last question, I mean, you’ve had to cut the outlook a few different times from a top line and an earnings perspective. When you look at sort of the retail environment coming in softer than expected, you’ve talked a few times about the margin pressure that you’re seeing and expecting to continue. Like what gives you confidence at this point in the selling season that you’ve been conservative enough with the forward outlook or the forward assumptions?
Mike McLamb: I’ll tell you, number one, we don’t like cutting guidance twice. Let’s go on record to say that. I will reiterate again that the outlook that we had for the industry was much different than how the industry is trending. We expected a flat to up slightly unit industry through the first six months. We saw what happened in December, in the December quarter where it was down worse than we expected. We didn’t think it would happen again in the March quarter. So what, Fred, you put in your best outlook. You put in your best assumptions, which I think we’re doing that here. Again, you lower your numbers to where you think they’re going to be achievable. Every company wants to have upside in their numbers, so you always strive to do that. The issue is ultimately in the industry you’re playing in. Where does it settle and are we finding the right place for it to settle?
Brett McGill: And Fred, I’ll add that, we have data that Mike alluded to or said in his comments about the return to seasonality. It just kind of is taking, I think that last year we said there’s a return to seasonality, but it’s still continuing to shift that way where the bulkier business really starts hitting in that selling season. And, that those, that – those data points help guide us for the next two quarters also.
Fred Wightman: That’s fair. And there was a comment that things had picked up in April. I wasn’t sure if that was a sequential comment to maybe reflecting more of that normal seasonality or is that a year-over-year comment? What exactly did you guys mean there?
Mike McLamb: Yes, I could comment on that. So if you go all the way back to last year. We did say that April was a little softer during the month of April. It was following the banking crisis. So we’re up against the pretty easy comparison in April and April’s data. It does, as I mentioned, it does look like seasonality could be playing a bigger role with just the mix of business between Florida and non-Florida in the March quarter and then looking what’s kind of getting active in April. It’s obviously, Florida is always pretty good for us, but the northern markets really seem to be coming alive. So April does seem poised to be a solid month for us. Obviously, we got to get everything closed and drag it across the finish line next week. And so that was a seasonal comment as much as anything, Fred.
Fred Wightman: Okay. And then just lastly, is there, is the Williams acquisition, is that reflect, I assume it’s reflected in the new EPS guidance. I don’t think it was last quarter. Is there a specific call out from an EPS perspective for that?
Mike McLamb: So thanks for bringing that up. It is in our guidance, and it is a, fantastic company to merge. We’re happy to get them on the team in the size and scope of MarineMax anymore. There’s not a lot of acquisitions that really just move the needle when it comes to revenue and EPS in a meaningful way, to really call it out. It is accretive. It is a high margin business. It’s got a fantastic management team with a great product, so we’re really happy to bring them on board.
Fred Wightman: Okay. But specifically not enough to move the needle in it.
Mike McLamb: It’s adding to it. So the guidance reflects, some countries contribution from them. It’s just not a real big dollar amount from them.
Fred Wightman: Okay, fair enough. Thanks, guys.
Mike McLamb: Thank you.
Operator: Thank you. Our next question is from the line of Mike Swartz with Truist Securities. Please go ahead.
Mike Swartz: Hey, guys. Good morning. Maybe just a little color on inventory, and I think Mike or Brett, you had mentioned that inventories maybe a little more dependent on brand or category, but maybe at a high level. Just give us a sense of where are your turns today, and maybe where do they need to be over the next three months to six months before you feel a little more comfortable?
