Rhod Harries: Yes, if you look at the impact overall, I mean it’s probably not far off the range as, I think, about it, Brian. I mean it has had a big impact on effectively our cost structure. Other things have had impacts as well though. Inflation as well has impacted us. We had the impact – if you look at the pandemic, you had inflationary costs that were up effectively that we saw the runoff of all of that. So, it has had a significant impact as we move through the year. And as we say, we feel that that’s behind us now. And as we go into 2024, we are well positioned. And if you – the one thing we do control, we’ve got really our arms around, is our cost structure. And we feel very good about that as we head into 2024.
Brian Morrison: Yes, I appreciate that. But I want to understand that the tailwind, all things being constant, is the tailwind going to be – your starting base is not $2.55 of EPS. It’s really closer to $2.75 to $2.85.
Rhod Harries: Yes, look, our tailwind – if you look at effectively our starting base level is, yes, the answer is its strong as we move to 2024.
Brian Morrison: Okay. And then, sorry, Glenn, I didn’t understand your comment – pardon me, Rhod, the comment on GMT. You said it was conservative. Are you thinking that it might be above or below the 15%?
Rhod Harries: I am thinking when you look at the whole unfolding of GMT, plus other things that other countries are looking at, I think, very definitely there effectively is the potential that it’s below 15% for us. If you look at it on a combined basis, if you look at the total impact in 2024, we’ll see. People are still working on their legislation, and so I think you have to really monitor it closely as you head into 2024. And some of that will actually leak into – sorry, as you go to the end of 2023, some of that will leak into 2024 as well. I am not sure that all legislation will be in place as we finish the year. It will roll in the very early part of the new year, but the answer is yes.
Brian Morrison: I appreciate the clarity.
Operator: Next question comes from the line of Stephen MacLeod with BMO Capital Markets. Your line is open.
Stephen MacLeod: Great. Thank you. Good morning. Just a couple of things I wanted to follow-up on. The first one is just on ring spun, you talked about some revenue gains there. I am just curious, are you seeing any price sensitivity in ring spun, or is it more that you are seeing maybe with your pricing differential, your offering is more attractive to a price-sensitive consumer? Just trying to understand the dynamic on what’s driving ring spun.
Rhod Harries: Hey, good morning. I guess overall, again, I think, as we look at our product, I mean, I think, we have a very good quality product at good value as we were talking. And we saw through the pandemic, we saw some of our fashion competitors raise price pretty significantly above where we were and create a large gap, which drove more and more trial for us and an opportunity for us to gain share during that time. Since that point in time, we have seen prices by some of the fashion competitors come back down. But even with them bringing prices back down, we are still gaining share and outperforming them despite where the gap may be. So we think we’ll continue to gain share in the ring spun category. And again, as Glenn mentioned, we’re able to capitalize on the investments we’re making in our vertical integrated manufacturing to continue to do that, especially as we bring up Bangladesh. So, I think we’re well positioned.
Stephen MacLeod: Okay, that’s great. Thanks. And then just coming back to the 2024 outlook, I mean, it sounds like you have had a lot of positive commentary around just the outlook and what you can control. But just as it relates to fiber costs, do you have – is it fair to say that you have most of your fiber cost visibility sort of already lined up for 2024, or do you have kind of six months visibility and then beyond that kind of depends on what the market does?
Glenn Chamandy: I would say that we have a very good visibility in our cost structure for the full 2024.
Stephen MacLeod: Okay, that’s great. Okay, thanks, Glenn. That’s great, thank you, guys. Appreciate it.
Operator: Our next question comes from the line of David Swartz with Morningstar. Your line is open.
David Swartz: Yes, thanks for taking my question. Can you give us a little bit more information about the ramp up of the Bangladesh facility and how that fits into your production cycle? And also if your plans have changed at all because of the relative weakness of the international business and the possibility of higher wage rates in Bangladesh? Thank you.
Glenn Chamandy: Well, we are continuing to ramp up our Bangladesh facility. Really it’s going to be roughly about 25% of its running capacity by the end of our Q4 of 2023. And then we’re going to continue to ramp up the plan and our objective is to have 75% by Q4 2024. So, that’s an exit rate. So if you take the average as we know it starts at 25% and ends at, 75%, I mean, you can just get probably more of a 50% impact to and that’s what we really need to support the growth of our ring spun product categories and as well as the big underwear programs we have. So we are pretty much aligned and then the exit rate will continue to support 2025 as we move forward. Regarding the wages, I mean, wages I think are, pretty much in line in all of the areas, particularly in Bangladesh. I mean, wages are not a big factor of our overall cost structure in any of our operating margins or markets anyway. So we don’t really see that as an issue.
David Swartz: Thank you and good luck.
Glenn Chamandy: Thank you.
Operator: And we have another question. It comes from the line of Sabahat Khan with RBC Capital Markets. Your line is open.
Sabahat Khan: Okay, great. Thanks and good morning. I just want to get a little bit more color on the commentary around the innovation. I guess, is this innovation more around kind of remanufacturing the products at lower cost? Is it sort of new to market products? You can talk a little bit about kind of what is included in these new launches.
Glenn Chamandy: Well, it’s really about the innovation of the types of material that we put into our products. We’ve significantly improved a lot of our fabrications as well as we redesigned the fit, and look and feel of a lot of our products. So, printability is another big aspect that we’re looking at to support the digital printing market. So, it’s a combination of various innovation ideas that, I think, are really going to separate us from what’s out there today in the market. We’ll be presenting a lot of these at Long Beach in a couple of months and we hopefully will be hosting an investor conference sometime in the new year to help showcase really where we’re going and the leverage we have from our vertical integration and all the great things we’ve got going on.
