Michael Happe: Yes. Good morning, Tristan. This is Mike. That question really has to be answered, it depends framework. And what I mean by that is, obviously as you’re well aware, we have different moving pieces of our business in the Marine and the Motorhome RV segments of our business. There are still some sub-segments where dealers maybe interested in continuing to add to their inventory position and we have, as you know and Bryan and I both mentioned on the call a very rare situation here with the Mercedes-Benz recall that has a lot of that Sprinter inventory stuck in place at the present time. But on the towables RV side, I think it would be fair to say that we think both the dealers and probably the OEMs would see little harm in field inventory being reduced a little bit here over the course of the next three to four months and I won’t get further than that because I don’t have a crystal ball to anticipate the market condition.
So if you look at Winnebago Industries RV dealer inventory at the end of our first quarter fiscal 2023 compared to the end of our first quarter fiscal 2019. Our turns today on a trailing basis are higher. The real question is on a forward basis, are we in the right position? But our business has grown meaningfully over the last three, four years. And our inventory actually has not necessarily on the towable side over exceeded that retail growth at all. So we definitely feel there’s room for towable inventory in the field to get a little bit lower. And we’ll see what happens here over the next three, four months as we head into the spring 2023 selling season.
Tristan Thomas: Okay. Thank you. And then just a question on the Springer recall, I think you said remedy in Q1 of next calendar year. Is that a bit longer in the timeframe than you expected? And then if it is, what are you going to do it to offset that?
Michael Happe: Yes. So a little bit of history on the Mercedes-Benz recall, this was something that came to our attention late in the October 2022 time period. And it took us a little while around a week or so to understand even from Mercedes exactly what the issue was and what the implications were to our business and a potential timeframe for resolution. I don’t really want to share many specifics about the challenge Mercedes is facing here other than the timeframe for the specific resolution of the product issue has been something that has moved around. And the estimate that we provided in my script today of resolution projected to be sometime in calendar Q1 of 2023 is our best estimate at this time. But you notice, I’m not saying whether that’ll be January or whether that’ll be March, the timeframe for resolution is still not as specific as we’d like it to be.
So we continue to work with Mercedes as a good OEM customer of theirs to see what we can do to help. From a long-term standpoint, we don’t view this as a systemic issue. We believe Mercedes will continue to make quality chassis for their OEM and retail consumers and we’ll get back to business operating smoothly at some point in the future. The biggest concern with that issue is retail being frozen or lost while they pursue the resolution. And whether that comes back to have a material impact on the total number of wholesale shipments that OEMs like ourselves can ultimately deliver to the market. So we’ve been transparent with the financial community as to the Q1 impact, certainly this morning. And also that we project there to be a similar impact in Q2.
What we cannot tell you, Tristan, this morning is, what that means for Q3 and Q4 once the issue is resolved, that will largely depend on the retail environment at that time.
Tristan Thomas: Okay. So it doesn’t sound like we’re going to try to transition everyone over to ProMaster Chassis, we’re just going to kind of stay the course and hope it resolved.
Michael Happe: Yes. Again, we continue to partner with Mercedes technically on the issue. We continue to work with our dealers to try to provide them other products that they can retail to their consumers that are interested in similar size platforms, but the final details of the resolution program and ultimately the financial impact to ourselves or our dealers is still a work in process at this time.
Tristan Thomas: Okay. Got it. Thanks so much.
Michael Happe: Thanks.
Operator: Thank you. One moment for our next question, please. It comes from the line of Scott Stember with MKM Partners. Please proceed.
Scott Stember: Good morning, everyone, and thanks for taking my questions as well.
Michael Happe: Good morning, Scott.
