Chuck Ward: Martin, I would say it was across the board. It’s pretty consistent across the markets and categories.
Martin Landry: Okay. That’s it from me. Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Chris Li of Desjardins. Your line is open.
Chris Li: Good morning, everyone. Maybe just one question left from me. I know it might be a difficult one to answer, but I’m just curious to see how confident you are that the cut is sort of — that’s it like what sort of risk that can cause guidance to revise further lower in the back half? Just wanted to see where — how confident are you in terms of what’s on the revised guidance. Thank you.
Rhodri Harries: Okay. Chris, thanks for the question. If you look overall, effectively, as we said, we’ve given you a range for the full year. If you go to the midpoint of the range, we — when we see the mix changes that are occurring, effectively, that drives us to the midpoint of the range. And then if you go to the low end, there’s — obviously, what we’ve effectively done is reflected macro uncertainty. Actually, even a little bit of that is in the — probably in the midpoint. So we really do feel that we’ve de-risked the back half with our forecast. What we tried to do is give you what we think is a very good baseline for the overall environment, the shifts that we’re seeing on — with respect to the consumer, how they are effectively trading down, and we factored in some, as we said, macro uncertainty because we know the environment is tough to forecast.
It’s tough to know exactly what inventory levels people are going to carry especially as the year unfolds. So I would say we feel like we really have de-risked the forecast for the full year, and we feel good about delivering. Actually, we feel good about performing against it. And as we said, as we come out of the back end of the year, we feel we’re very well set up for 2024.
Chris Li: Okay. Thanks, Rhod and all the best.
Rhodri Harries: Thank you.
Operator: Your next question comes from the line of Paul Lejuez of Citi. Your line is open,
Brandon Cheatham: Hey, everyone. This is Brandon Cheatham for Paul. I just wanted to see if you could give us a little more details on the underwear business you’ve gained. And as it relates to the Bangladesh facility opening early next year, are you having any other conversations with potential customers to try and utilize that capacity that’s going to come online?
Glenn Chamandy: Well, I’ll answer that one. Look, the underwear programs have been rolled out a little behind schedule, I would say, in terms of actually — not from our perspective, but just when — how long it took for us to get the floor set that our retail partners, but they’re doing very well. We’re continuing to get new opportunities as we move forward. Look, Bangladesh for us is a key part of our whole strategy. I mean, look at the plant is starting this quarter. It’s going to be ramped up to about 25% of its full capacity by the end of this year, which is factored into all of our working capital assumptions, our inventory levels, et cetera. And at the same time, it’s going to really give us the ability to strengthen our cost structure and really go after gaining share not just in our underwear categories, but also in the fashion basics as well as our international markets.
So it’s really going to be something I think that’s going to be very important in terms of the overall manufacturing cost structure for Gildan as we move into 2024 and 2025. So it’s going to give us room to go after new programs. We actually have a stream of programs we’re looking at as we move into ’24. And a lot of these types of programs will be supported by as we ramp up Bangladesh.
