I took out my new Shimano SLX XT on the water and when cranking, it is clicking every turn of the handle. I can feel it in my hand and is noticeable when using moving lures like spinnerbaits. Does anyone know what is the issue is? The reel is new out of the box. 

Does it click in exactly the same place on each rotation of the handle? Slip the drag a little, and then it consistently clicks in a new spot in the rotation of the handle?

 

Did you possibly turn the handle hard and them click it into freespool mode to watch the spool spin at some point?

 

I had this on one of my reels and replaced the drive and pinion gears and the click went away. I poured over the gears several times with a magnifier and could see no bad spots, but when I turned them against each other with the sideplate off, there was clearly a hitch on every rotation.

@QuirkyCarp2000 If it’s brand new why not return it for an exchange/refund or have it fixed under warranty?

21 hours ago, QuirkyCarp2000 said:

I took out my new Shimano SLX XT on the water and when cranking, it is clicking every turn of the handle. I can feel it in my hand and is noticeable when using moving lures like spinnerbaits. Does anyone know what is the issue is? The reel is new out of the box. 

That's usually a bearing doing that.  I would oil the likely suspects and fish.  In my experience this is corrosion on the balls or race in a bearing and once used for a bit it wears off.  The bearing is likely dry which has allowed the corrosion to form so an oiling and use usually sorts it out.  The bearing for the handle that sits in the side plate is usually the culprit.