Question-and-Answer Session
Operator
And the first question comes from Andy Hargreaves with Pacific Crest. Please proceed.
Andy Hargreaves - Pacific Crest
Hi guys. Can you just comment a little bit more on the retail inventory, is it that most of your big customers ended the quarter at a comfortable level or will we continue to see reductions in inventory coming into this quarter?
Jerry Quindlen
Yes Andy. In general, retailers are continuing to be extremely conservative with their inventories and they will continue to be until they see that consumer demand has stabilized. In general, while retail inventories came down, in many cases sales came down even further.
So, I think at this point, retailers are taking an attitude of being just very, very cautious about the amount of goods that they willing to have on hand. And in terms of our planning assumptions, I don't think that's going to abate until they see signs of stability in consumer demand.
Andy Hargreaves - Pacific Crest
Okay. And then in terms of your co-marketing with them, have you changed the amount of dollars that you're using for co-marketing? And have you lost any shelf space or given up any shelf space to conserve those dollars?
Jerry Quindlen
No. We haven't lost any shelf space at all and in fact, we’re using this downturn as an opportunity to try and gain shelf space, particularly from more marginal players. So, retailers in general are starting to reassess their overall space allocation in categories during a time like this. They’ll look at a category and say, do they have the right amount of space allotted to it in general. And sometimes they will make the decision to reduce the number of suppliers and we think if they do make those decisions and the smart ones will, that’s an opportunity for us because we’ll always be one of the suppliers that they want to keep because we constantly innovate. So we view it as an opportunity going forward.
Andy Hargreaves - Pacific Crest
Okay, thank you.
Jerry Quindlen
Thank you, Andy.
Operator
And the next question comes from the line of Jonathan Tseng. Please proceed.
Jonathan Tseng - Merrill Lynch
Hey, it’s Johnny Tseng from Merrill Lynch here. Just a couple of questions on the FX. Now in the past you have always maintained that the moves in your dollar rate doesn’t make as big an impact on the margins because of LIBOR [plus income]. That seems to have changed this quarter. I was just wondering what’s the difference to what’s happened in the past. Is it the magnitude of the dollar weakening? Is it volatility or the timing around the end of the quarter? Can you give any thoughts on that?
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