Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from Jeff Klinefelter with Piper Jaffray.
Jeff Klinefelter - Piper Jaffray
I wanted to talk about two things; one, is the domestic market, and then two, would be a little bit more detail on Europe and International. First of all, on domestic, I guess, what begs the question is, with the beat in Q2 and flowing through, most of it, but not all of it to the year, was there any sense that there are shipments in the second quarter that are coming out to the third, or is there is any sense that retailers are getting more cautious and so you want to handicap some of those bookings in the second-half? Does club business play into this, the flow of that, just wanted to clarify that and get your perspective, Joe, on the domestic market?
Joseph R. Gromek
Obviously we had a 5% increase in the quarter, so we feel very good about the domestic market. If you are looking at first half, remember in Q1 we had an extra week so that helped us to some degree, and in terms of club business, we had about $15 million more in Q2 than we did a year ago, so there was some impact to that. Having said all that, our brands are continuing to perform very well and we are seeing it across basically all channels of distribution. Our brands in the mid-tier have done an exceptional job, both in the sportswear area with Chaps and Warner's and Olga, so that they are really gaining market share. And I think if there if we are seeing any softness at all, it would be in two businesses in the department store channel. I think the Calvin Men’s businesses and Underwear has been very strong. We saw some weakness in the Calvin Jeans business, and in Underwear, Calvin Women's business has been a little softer and we expect to see a major shift when we launch Seductive Comfort. So those are the only issues that I think we are facing at this point in time.
Jeff Klinefelter - Piper Jaffray
One other point on domestic; with Mervyn's filing, the Boscov filing, any perspective you would like to share on exposure there or how do you anticipate this unfolding for second half for revenue and EPS?
Joseph R. Gromek
Unfortunately those three accounts were relatively small revenues for us. We are fully reserved for the write-downs. In terms of the business, in 2007 those three accounts amounted to $9.7 million worth of revenue; so in our $2 billion company, it is relative modest.
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