Michael Happe: Fred, thanks for the question. We really didn’t plan to not comment. We just did not include that topic specifically in our script. Our position really hasn’t probably materially changed since our last earnings call, and I will explain what I mean by that. As we look at calendar 2024, there are many retail estimates out in the marketplace. Our latest on record comment was around 350,000 units of retail in calendar 2024, which would be roughly flat to where we think calendar 2023 will end. And so we continue to believe that, that is an appropriate target for calendar 2024. We do believe in calendar 2024, that by the end of that period, that wholesale shipments could approach a one-to-one total with that retail number.
And so wholesale shipments could also equal 350,000 in calendar 2024, sands any unexpected macroeconomic developments or other issues. And so that’s our current position, which I don’t believe is meaningfully changed from the prior quarter. That’s where we stand.
Fred Wightman: Perfect. Thank you.
Operator: Thank you. Our next question comes from Bret Jordan with Jefferies. Your line is open.
Bret Jordan: Hi. Good morning guys. In total ASP expectations for mid-single digit to high-single digit decrease, could you talk about what you see being mix, the opening price point offerings that you are rolling out versus deflation just passing through lower same SKU prices?
Bryan Hughes: Yes. We introduced the – as you know, Bret, I think from our Open House, we introduced the Winnebago Access, which might have some mix impacts to a much smaller part of our portfolio in the Winnebago brand versus the larger portfolio of Grand Design. The intended message there of to 8%, say, down is more on a mix neutral basis. But I don’t – sitting here today, I don’t expect mix to play a really significant role in that ASP calculation. That might change as time progresses through calendar ‘24, but that’s how we see it sitting here today.
Bret Jordan: Okay. Great. And then a question on the sort of the dealer sentiment at the Open House and the timing of the backlog expectation, I mean you guys were sort of talking about the first half of the fiscal year being a challenge. But are you expecting that they sit on those orders and hope for delivery after the Tampa show? I mean how do we think about the rest of calendar ‘23 from a sort of dealer sentiment production schedule?
Michael Happe: Bret, this is Mike. Good morning, let me comment on that. First, let me talk about what we experienced at Open House with our business. So, at Open House, we had each of our three brands displaying. The Winnebago brand essentially has two sub businesses under it, motorhome and towables. Each of our four businesses at Open House, Newmar, Grand Design, Winnebago Motorized, Winnebago Towables experienced an order increase at Open House 2023 versus the open house in 2022 during that Open House week. So, we were really pleased coming out of Open House 2023 in spite of a very tepid dealer ordering environment to see that increase. And some of that is due to the new products that we have referenced here today. And even some we haven’t mentioned like the echo on a Mercedes Benz chassis underneath the Winnebago Motorhome business.
That also drew a nice amount of orders in Elkhart. We have seen backlog sequentially improve in our largest segment, towables from June through September, which is a nice development. And I think I may have mentioned that in the script comments, but we are seeing that backlog beginning to grow again on the towables side. From a timing standpoint, we think that this will be contingent a bit on the retail pace, obviously, that dealers are experiencing. As I mentioned, minutes ago, we like our inventory position in the field at this time, meaning that we do not believe it’s excessive or old at all. And so our sales personnel are working with the dealers to have them take product as they are comfortable. We will not share production schedule information this morning in terms of this fall.
