On the activewear side, it really varies by channel, and by customer. There’s I’m seeing there’s low in some areas high and others. So it just depends on where that individual customer is. There is still lots of — out there in the market and some of that is age. So I think you’re going to continue to see some promotion around that space. But we would expect that the promotional environment would begin to drop as the as the quarter progresses.
Michael Dastugue: And then, yes, I think with regard to below, we would be below three by 2025. Essentially, a couple years from now.
Paul Kearney: Thank you.
Operator: Our next question comes from a line of Jay Sole with UBS.
Jay Sole: Great, thank you so much. My question is on SG&A and the full potential plan. Maybe Steve, can you just walk us through how much of the expected SG&A savings has already been realized in 2022, maybe how much more you expect in 2023 and 2024? If you just give us an update there, that’d be super helpful. Thank you.
Steve Bratspies: Yes, there’s a lot, a lot of activity going on in the SG&A space. And it’s a balance of savings and investment. And I will be clear that, part of the full potential plan is we’re leaning into the areas of the business that we need to continue to grow. Technology spend is going to continue to build some of that expense, some of that’s capital, but we’re going to continue to invest in that space. But we are taking near term action, we did do a headcount reduction in January. We are looking at other opportunities for us to continue to take costs out of our networks, and be as efficient as we possibly can. We’re looking carefully at spending this year. We’ve been investing in our brands, but we’re going to be thoughtful and kind of spend at the rate of consumer demand out there as we go forward.
But we look at our model, and you look at the P&L of this company, the big savings that we need to continue to generate or revert back to where we were as in cost of goods. We need to regain the margins that we had before COVID, before all the inflation hit. And that’s our focus. And we’re doing that through optimizing our network, we are looking at sourcing in our contracts and how we source, we’re consolidating vendors. We’re looking at all the different parts of our network to continue to improve. And we think we can do that. As I said, we kind of reconfirmed the commitment of a mid-14% Op margin and the full potential plan. And we’re going to continue to work costs across the board.
Jay Sole: Got it. Okay. And if I can follow up with one more. Tim has been touched on the call. But if you could elaborate a little bit more about where the headwinds are in 2023, maybe in terms of channel or geography, and then maybe talk about where some of the opportunities are for growth, perhaps beyond that’d be, that’d be helpful as well.
Steve Bratspies: Yes, and as I said, we expect it to be relatively consistent across all the segments. As I look at the market right now, and look at how the consumer is responding on a global basis. Obviously, the U.S. market inflation while softening, we still see it as well above historical levels. And it’s going to continue to impact the U.S. consumer and their spending decisions, particularly in the lower income consumers. As you look back, we would expect the mass channel trend to start to improve. We are seeing decent POS early in January, which we’re seeing is encouraging, running positive and most accounts, but as we talked earlier, shipments are still lagging. So there’s some optimism there. When I look at our European market, it’s similar to the U.S. still challenging.
