Jason R. Vanderbrink: Yes. Mark, this is Jason, and good morning. As we guided, we said we’d be at the high end of the EBITDA for the quarter, but it would be less than the third quarter. Obviously, the price increases that we are taking to keep the factories going were not offset by the price increases that we put to the market. And secondly, we may be a little less efficient in the quarter as we make more SKUs, obviously lose a little bit of efficiency on that. Now our hope on that is our gross margin on the products we make help offset the efficiency loss. But it’s mainly driven due to the price Increases input costs that we have to take.
Mark Smith: Okay. And last one for me. Just Eric, you know, any additional insight in kind of your comfort level with Revelyst, current inventory? You know, is there still, you know, some work that needs to be done on cleaning stuff up here as we look at Q4 do you feel, pretty confident with where you’re at today?
Eric C. Nyman: Sure. Well, I’m very proud of the teams, Mark, with regards to the progress that we’ve made on inventory. You know, we’re down both year over year and sequentially. There’s always work to do. I think there’s still some pockets that we want to improve upon. But I’d say overall, we feel much more comfortable with where we are in inventory today than where we were coming out of the second quarter.
Mark Smith: Perfect. Thank you, guys.
Operator: Our next question comes from Jim Chartier of Monness, Crespi & Hardt.
Jim Chartier: Good morning. Thanks for taking my questions. First, can you talk about POS trends in the quarter for both brands, how that compared to last quarter? And then what’s kind of the visibility into the timing of when we get the flat POS, for both businesses?
Eric C. Nyman: Sure. Good morning, Jim. I’ll I guess, when you say both, I’m guessing you want both Revelyst and Kinetic. Is that correct?
Jim Chartier: Yes. Okay. Well, so I’ll start, Jim, and then I’ll turn it over to Jason if that works for you. With regards to our segments, and that’s probably the easiest way to talk at a higher level. On the precision sports side, we talked about Golf already, but we saw that business from a POS standpoint being fairly flat, really good momentum on the direct-to-consumer side, offset a little bit by some specialty. With regards to Adventure Sport, I’d say the same headlines would be there as well. It is pretty flat for the quarter. We saw some good momentum again on the D2C side and mass, versus offset by some, you know, some small headwinds at specialty. And we already talked there about, you know, a small pocket of that being snow, really being the most challenged on that side of the business.
With regards to outdoor performance our last business that was flat to slightly down for the quarter. Most of those brands are in what used to be called the Hunt Shoot portfolio and we’re continuing to work through that.
Jason R. Vanderbrink: Jim, on the Kinetic side, we referenced this we had about a 6-week surge in the Q3 October, November and that really helped the channel partners out to clear out some inventory and since then, in POS has been flattish. I mean, there’s some weeks that it’s up single digits and there’s some weeks that it’s down single digits. But I think it’s the market is showing normalization right now. And as we head into calendar year 2024, we fully expect the big American made brands to take market share from the smaller vendors. And I think that will help our POS out in particular.
Jim Chartier: Great. Thank you. And then, I believe you said Kinetic EBITDA margin toward the low end of the range for this year.
Jason R. Vanderbrink: What’s driving that? We expect the EBITDA at the high end of the range was in our – was in our……
Jim Chartier: I’m sorry. For Revelyst EBITDA at the low end of the range. Sorry about that.
Eric C. Nyman: So the Revelyst EBITDA margins go in to the low end of the range, so a few items that we look at the returns that we’re expecting in Q4. We’re still going up to high single digits on the EBITDA level. It just what it is and it isn’t going to quite get to it would have to be into the double digits. And we’re based on what we’re seeing for the promotion retraction, based on what we’re seeing with the inventory levels at retailers, what we’re seeing to move through, It isn’t going to quite get to the higher end of the range at this point in time, but we are expecting to see significant improvement over what we saw in Q3.
Jim Chartier: Okay. And then in terms of sales growth for Revelyst in fourth quarter, do you expect POS is positive in fourth quarter?
Eric C. Nyman: So I think in different categories, it’s going to be different. So as we talked about with Golf, new products will drive favorable POS as these products are getting new innovations, we expect those to sell through in a good way for those businesses. If we look at some of the other businesses our Action Sports business, this is going to be more kind of the flat to POS. What we’re seeing is as the inventories are getting healthier our retailers are starting to put in more purchases. We’re seeing preorders in that category at rates that weren’t there last year. So we have better preorders. So we are seeing the signs that they’re going to have purchased, and then that’ll just be a little bit more in line with the POS that we’re expecting. So not a significant Bumped in the POS.
Jim Chartier: Great. Thank you.
Operator: Thank you. Our next question comes from Rommel Dionisio of Aegis Capital.
Rommel Dionisio: Good morning. Thank you. You guys had referenced unfavorable mix on the Revelyst side for was impacting Q3 gross margins. I wonder if you could just provide a little more granularity on that. Was that more, you know, the shift away from, Action Sports or is it just across the board and across categories consumers in a difficult economy kind of shifting to lower price point, lower gross margin items? Thanks.
Eric C. Nyman: Yes. So it’s actually a mix of both those items. So we did see both some of what was returning from a Sales perspective, in the quarter, it was a little bit more of our more mass type channels and the products that sell in our mass channels. Those are historically, a little bit lower margin. Our specialty channels are higher priced helmets and snow and helmets and those items are a little bit higher margin typically, so those did see a transition away as we saw a few of the fewer of those selling than what we had previously seen. So we did see that mix shifting a little bit in the channel and within the product categories that drove that.
Operator: Thank you. [Operator Closing Remarks].
