Operator: The next question comes from Fred Wightman with Wolfe Research.
Frederick Wightman: I just wanted to — if we think about the retail commentary you just gave and then look at the actual reported sales guidance, what sort of gets you to the low end versus the high end of the sales? Is it just sort of how long or sticky that price and mix benefit is? Or is it retail? What is sort of driving that?
Michael Speetzen: I mean there’s going to be an element of it that’s the retail. We’ve factored in the level of promo that we think is appropriate given the industry conditions. And a lot of that promo is really geared around interest rate buy downs — just knowing that the kind of the low to mid-end of the markets are pretty sensitive to the interest rates. They typically finance. And so we’ve built that in to allow us. So I don’t know that we’re necessarily anticipating any substantial price moves. I think a lot of it’s really going to be, as we talked about earlier, we’re going to let demand and dealer inventory kind of guide where we ship to the business. And if we see pockets as we look through the scenarios. And frankly, it’s why we widened the guidance range relative to what we normally do is to just recognize that there’s a fair amount of uncertainty.
And when we talk about flattish retail, as I mentioned in my prepared remarks, we’re kind of running scenarios where we’re down a couple of points or up a couple of points and using that to help guide where we need to go and then factoring in the fact that we do have new products coming in that serve new segments. And we’ve got a — we anticipate strong demand for those, but also making sure that we’ve got plenty of inventory in the channel for the dealers.
Frederick Wightman: Makes sense. And then just on that new product introduction, you gave us the earnings cadence 16% to 17% in the first quarter, but also just the timing of these products. It sounds like in the back half of the year, should we be looking to historical cadence for the quarters? Should it be more back half weighted because of these products? How do you sort of want us to think about that?
Michael Speetzen: Yes. So it will be — I think looking back at historical cadence is the right direction to go. Probably a little bit more to the back half than historic just because of the new products and the timing of those. The other thing I think folks need to keep in mind around growth for next year is the commercial business. We have a very large business selling rangers to commercial accounts folks like United Rentals, Herc Rentals, things like that. And that business, one doesn’t run through the dealers. It’s sold direct. It doesn’t show up in retail. It doesn’t count as ROVA retail. But it’s a business that is really strong right now given the infrastructure bill and the chip fab bill. So those markets are really strong.
We do really well in them. And that business is up significantly for 2023 with relatively low risk in terms of it happening, regardless of sort of what happens in the general economy because those projects are funded. So that gives us a little bit more stability and confidence in the growth on RANGER as we go into ’23.
