Michael Happe: Bret, this is Mike. Thanks for the question. I would say arguably we’ve already seen a surge in support to the market, obviously by the pontoon OEMs, and certainly we’ve surged a little bit as well. We try to be surgical with that particular support, working on certain age models and with certain dealers. I would say we don’t see probably a dramatic shift upward in our support for Barletta as we go into the spring and summer selling seasons. As I indicated in a previous response, Aria’s inventory is higher than it has been in past years in that brand and certainly a little higher than we’d certainly like it today. But we’re going to be very rational and the team’s market support activities have been, I think right on target as they continue to work with the dealers on that brand. So, no, I don’t think we’ll see a significant surge by our business, but I can’t comment on what the rest of the industry or our competition will do.
Bret Jordan: Okay. And I guess the question for your chief economist. Sort of the possible timing of mid cycle environment, you talked about a retail comp recovery in May, given the magnitude of the downturn, and I guess maybe the magnitude of the surge that preceded it, are you thinking about mid cycle being something that could happen in ’25? Is it ‘26? I mean, it’s hard to know, but just looking at the industry and your history with it, how long do you think the recovery might be?
Michael Happe: Yeah, Bret, we appreciate the question. In past, let’s call it Investor Day target releases, we have assigned specific fiscal years to those targets. As I think everybody who’s on this call is well aware, the fluidity and dynamics and volatility of these outdoor recreation industry segments has been high and it’s been very difficult for all of us to forecast, both short term and long term exactly what the market is going to give us good or bad. And so one of the reasons we’ve labeled these targets mid cycle and given you some framing of what that means in terms of industry retail size is that we don’t exactly know the timing of when the North American RV industry or the pontoon industry will return to those levels.
We certainly are rooting for sooner rather than later, but I would say these organic mid-cycle targets are probably something we hope to achieve over the next three plus years. If that happens sooner, fantastic. But we are trying to be very humble with not assigning a year to it because we just simply don’t know at this time. We are quite confident, though, let me reiterate that when the industry does return to those types of retail levels and we’re back into that more normal dealer inventory cadence as well in terms of how they bring in products based on retail, we are very confident that those numbers are achievable. And that’s why we wanted to give, especially you all today those numbers.
Bret Jordan: Great. Totally fair. Thank you.
Operator: Thank you. Thank you. One moment for our next question. And our next question comes from Fred Wightman of Wolfe Research.
Fred Wightman: Hey guys, I just wanted to come back to, excuse me, the Tristan’s ASP question, Bryan. In your response to that, were you talking about fiscal ’24 ASPs? And could you also make any comment on model year ’25 ASPs, particularly for the Towable category, how you think those are going to trend on a year-over-year basis, both from a like for like perspective, but also whether the mixed headwinds are expected to persist in the next year too?
Bryan Hughes: Yeah. Thanks a lot, Fred. In my answer earlier, I was really referring to our most recent quarter. The numbers that I was referring to were really Q2 versus the prior year and what we were seeing on a year-over-year basis because I assume that that’s how most of the analyst community is tracking. So that’s how I was answering that first question. I’m going to refrain from commenting extensively on what we’re seeing in model year ’25. Sitting here today on the Motorhome side, I think we’re going to continue to see some pass through of chassis inflation. On the Towable side, I think we’ll continue to see some mix that pushes ASP downward in the near term. And likewise for our Marine business, we’ll continue to see some ASPs influenced by that mix downward, as we talked about earlier with the Aria entering the product lineup.
So I guess that’s what I’d say on ASP. The other color I will give because I know the analyst community is highly interested in margin. Our margins are most impacted by deleverage and the lower sales dollars. We are not calling out as a driver of margin, a cost environment that is not being offset appropriately by our pricing initiatives. So that’s a relatively neutral equation, and that is true across our segments, that as we introduce new products, for example, that have lower price points associated with them or as that mix shifts lower, we’re not seeing a negative drawdown in terms of EBITDA yield or margin. So I think that that’s an important attribute of our financial delivery to acknowledge.
Fred Wightman: Makes sense. And then shifting gears a little bit just for the midterm or the mid cycle targets. If we look at the market share numbers specifically, you guys are talking about 13% plus. If we go back to the targets you talked about in late calendar 2022, I think you talked about something in the 15% range. So can you just help us bridge the gap there? Why is that target coming down a little bit, especially considering that you announced the Grand Design motorized platform subsequent to that, so just help us understand if the targets or aspirations have maybe come down a bit for RVs and if so, why?
