Right now, we’re, in many respects, in the first quarter, we’re selling more than we make. So — we don’t know that there’s a long-term fix needed. We are as part of our long-term capital investment plan that we’ve talked about over the years. We are adding capacity to our Pro V1 lines and that will come on board in the next couple of cycles. So we think we’re in good shape long term and we think we get out of this current situation here by the end of the third or early fourth quarter. And I will just add, we are putting — and I mean the comment in my earlier remarks, we’ve put a record amount of Pro V1s into the marketplace in the first half of the year. So we feel very good about our positioning and again, I think in a few months’ time, we’ll get back into a state of equilibrium as it relates to demand and our output and supply.
Joe Enderlin: Got it. Got it. That makes sense. As a follow-up, could you provide any update on how you see golf inventories in the retail channel? And how is sell-through at an industry level? If you’re seeing — and maybe if you’re seeing any promotions increase?
David Maher: Yes. So generally speaking, the golf inventories are in pretty good shape, considering all the supply chain disruptions we’ve — we as an industry have experienced over the past couple of years. Demand has remained strong. Rounds-of-play has remained strong. So as an overarching characterization of the golf industry, I’d say they’re in pretty good shape. I commented on balls, they’re in line. And again, we’re running a little lighter than we’d like to see. There may be a few pockets of club inventories following significant launch activity in the first quarter, but nothing jumps off the board. As we’ve said in the past, Titleist clubs is largely a build-to-order business, which makes us a little bit less susceptible to inventory corrections.
The one area we called out was footwear, right, and golf footwear around the world is running a little heavier than we’d like. We’re seeing some promotional activity there. The final point I’ll make is, as it relates to overall promotional activity in the golf space, certainly, it is increased from where it was 2, 3 years ago. You may recall during ’21 and ’22, there was virtually no promotional activity in the marketplace. We have seen a resumption of promotional activity, nowhere near historical levels, but I do think in some cases, in the spring as an example, it was intentional as opposed to reactive, right? We had a promotion with our Pro V1 franchise. I think you may see some holiday promotions that are intentional more so than corrective or reactionary.
So again, we’re starting to see an uptick in promotional activity, nowhere near the levels we saw pre-COVID. And I think overall, in line with where the industry ought to be.
Operator: Our next question is from Casey Alexander from Compass Point.
Casey Alexander: I just have a couple of questions. One, on the share repurchase program, is there any way you can tell us how much of the 482,000 was bought after June 9 and would then be subject to the repurchase agreement with Magnus?
Sean Sullivan: Yes, Casey, this is Sean. I think that you’ll have — when we file the 10-Q later today, you’ll have at least some information listed in terms of what our activity has been since the end of the quarter.
Casey Alexander: No. But I mean the 482,000 that was in the quarter that was bought after June 9, which is when the agreement with Magnus began.
Sean Sullivan: Yes, apologies. No, I don’t believe that we disclosed that information. I do think there — we do record a liability in the quarter. I don’t believe that is — I’ve to check the queue that may be. I don’t know that, that’s disclosed, Casey, I apologize. But I would — sorry to talk over you. I probably roughly 1/3 of that number is my estimate.
