That said we know that there’s pockets we’ve seen more pronounced slowdown in some of the RZR products where we’ve got to work with the dealers in specific regions to make sure they can move that product. That isn’t anything that is abnormal. We constantly have to deal with shifting dynamics and we’re working through that with the dealers and I think the key is we’re using that as our guidepost as we move forward into ‘24 to make sure that we keep those inventory levels at the right level so that the dealers got the right product for the consumer and they can manage their finances given the higher floor planning costs.
John Healy: Understood. And then just a follow-up on the snow business. Obviously, you guys are enthusiastic about what’s on the horizon there. Is that more about the catching up over last year or are you starting to see some benefit for maybe the dealer starting to shift towards you guys and maybe away from Yamaha as they kind of exit the category here at some point in the not so distant future. And how big of an opportunity do you think that is for you guys?
Mike Speetzen : Yes, the Yamaha piece is small, really, we and BRP are the two major players in the snow business. So there’s certainly some business to be picked up there, but I would tell you that the reason we’re optimistic about our snow business is all the work we’ve done over the past year, year and a half to get that business back on track. Part of the headwind we’ve got as we head into ‘24 is, is the dynamic of the fact that we were late delivering our 22 snowmobiles. So we ended up shipping a lot in the first quarter of this year and we’ve made vast improvements in our ability to deliver and we’re going to have all of our snow check units delivered before the end of this year. And so obviously as we get into ‘25, we’re going to be back on a more normalized cadence.
And that obviously we’ll present some challenges as we move forward, but we’re really happy with what we’ve been able to do in that business, both in terms of getting the production smoothed out, but also the improvements we’ve made in quality, the new products that team has ready to launch as we get into ‘24 has us very optimistic about that business. Albeit it’s a small part of the overall company, but a big part the heritage and heart of the company. And so it’s really important for us to make sure that we’ve got that on the right track. So we’re very optimistic about where we’re headed.
Operator: The next question is from Scott Stember with ROTH MKM.
Scott Stember: Good morning, guys and thanks for taking my questions. First question on the utility side of ORV. You mentioned that the commercial side is softening a little bit. Could you maybe talk about the other side of that, whether it’s agriculture or anything else that’s driving that business? How is that piece holding up?
Mike Speetzen : Yes, I would just echo the comments I made earlier. I would tell you kind of at the valued of mid-range of our lineup has slowed relative to what we had seen. But the demand at the higher end, whether that’s the NorthStar Ranger or the soon to be delivered RANGER XDs, remains solid. So I think it speaks to the fact that the category is more resilient because consumers are using that to get work done on a ranch or farm. And we see that holding up better than we do in many of our purely recreational categories.
Bob Mack : Yes, we talked earlier that we saw some slowing from the rental companies in the back half of the year. But our rental commercial business was still really strong for the year as these guys got into their kind of Q4 that they backed off on capital purchases. But we expect to see that start to return as we get out of the year and they get back to their new capital budgets. And the road projects and chip app stuff and all that remains pretty strong. So we do expect to see that commercial business be pretty solid again in ‘24.
Scott Stember: Got it. And last question on PG&A. You talked about it being pretty strong still as the close out the year. But if you were to back out the Lock & Ride phenomena and some of the newer products on a like for like basis, how are you viewing the attachment rates of people holding off, not putting as much items on their vehicles?
Mike Speetzen : Yes, well, I mean, first of all, the new Lock & Ride MAX really hasn’t, I mean, it’s obviously on the new vehicles that we’ve got out there, but the proliferation is still relatively low. Obviously, that’ll pick up as we get into next year. Now, the attachment rates have continued to climb. We’ve done a lot with the factory installed accessories we do, whether that’s through Slingshot Design Center or the customization that our off road customers can do when they order a vehicle through the dealer. And we see that continuing to be strong, which I think speaks to the fact that people want to customize vehicles, which was a big part of our strategy. So we’re optimistic. They’ve done a lot to grow that business.
And as we talked about in my prepared remarks, I mean, we have the industry’s leading number of attachments. And I’m really happy with what the team’s done. You look at these new vehicles that have launched the XPEDITION launched with over 100 accessories, XDs launching with over 70 accessories. We did the same thing with our XP RZR. It really allows us to get out and get customers customizing these vehicles the way that they want to.
Operator: The next question is from James Hardiman with Citi.
James Hardiman: Hey, good morning. Thanks for squeezing me in here. First, just a quick clarification. Bob, I think you said you expected side by side to be up in the fourth quarter. Is it just side by side or do you think total ORV will be up in 4Q?
Bob Mack : I think total ORV will be up. Then obviously off road will be up because snow is included in off road.
James Hardiman: Okay, great. Then maybe just another point of clarification. As you think about retail, I guess ORV retail in particular, where do you think that finishes versus 2019? I’m just trying to wrap my brain around weeks on hand of inventory or inventory turns versus 2019. It feels like with retail down and inventories even close to flat, that those would almost have to be more weeks on hand, fewer turns versus ‘19 when I think you said coming out of ‘19 that you were a little bit heavy.
Bob Mack : Yes. So I mean, as Mike said, we think it’s going to be retail be relatively flat to ‘19 if you look across the whole company. And dealer inventory right now looks like it’s going to be down. If you exclude XD and XPEDITION, that you’ll have new channel fill on. So those weren’t in the base, but in terms of major categories that we don’t think have a lot of overlap. So turns are relatively consistent. Like Mike said, there are pockets and the pockets were light, the pockets were heavy. We’re focused on that, helping the dealers where they’re heavy and getting things like NorthStar where we’re still light out into the channel. So we feel good about dealer inventory. We are, is part of the reason we took the revenue guide down a little bit is we are going to be cautious as we go through the quarter.
