Eric Bosshard: Thanks. Two things, if I could. First of all, in Residential, I’d just love some clarity on what’s different now versus 90 days ago? What again, just to summarize what played out differently than expected?
Rick Olson: Yes, the — if you think about when we had our last earnings call, I think we were — we said Residential would be down a little bit from the year relative to what we were — what we had talked about previously. At that time, we tracked things like the green out in North America and other key markets and it was actually ahead of pace for the spring to arrive early. And shortly after that call, that shifted in the opposite direction. So the biggest factor and the one that can trump other factors, including the economy, et cetera, is weather and seasonal timing. So that’s what shifted shortly after our last call. We try to reflect our best commentary about where we think things are going. And then the maybe second factor that we think is — are the keys for the residential businesses, consumer confidence and the economy, the banking situation that happened shortly thereafter.
So the two biggest factors we think are driving mower demand within residential. Weather and the economy happened shortly after we had our last commentary. And a positive news is Pro is better than we expected at that time. So that’s a substantial offset to what we’re seeing on the Residential business and that accounts for 75% to 80% of our business that is looking very, very strong.
Eric Bosshard: Okay. And then within the timing, the there’s a lot of discussion about an extended season. Is it not something — this is not a business that can be made up? Is there a different appetite from retailers to bring in inventory? Just curious in terms of that point.
Rick Olson: The dynamics — dynamics are what you would expect if you’re in the place of a dealer. We always work, and I think it was previously mentioned, there are promotions out there to drive sales during the more middle portion of the season. The early portion of the spring is where the natural demand and interest is usually there. So if that gets muted it ships out. People still need to replace their equipment, but they’re not — there’s not the same sort of momentum about doing that. That’s where we come in with promotions and so forth. But — so that’s kind of the psychology of the end retail customers. From a dealer standpoint, they’re just being logical about managing their inventory. If they didn’t sell as many in the spring, they’re going to be more hesitant about medium reorders when they do get some retail in the mid-summer.
And all of these are factored into our guidance that we go through all of those plus [indiscernible]. We love to say we can make up for what happened in the spring, but we know realistically that there’s lost opportunity in the spring that we can’t completely make up.
Eric Bosshard: Okay. And then the second — and I assume this is an apples and oranges question, but the backlog increased and the finished goods inventory increased and again, you made a comment that the desire to work down the finished good inventory. Feels like finished good inventory solves backlog, except if we’re back to the apples and oranges concept. Can you just help expand a little bit on the logic that I’m presenting here?
Rick Olson: Yes. You’ve got the logic figured out of the increase in our finished goods inventory that we — that Angie talked about is on the Residential side and the backlog is the Professional side.
Eric Bosshard: Perfect.
Rick Olson: Thank you.
Operator: One moment for our next question. And our next question will come from Edward Jackson of Northland Securities. Your line is open.
