Question-and-Answer Session
Operator
(Operator instructions) Our first question is coming from the line of Bin Li with Morgan Stanley. Please proceed with your question.
Bin Li – Morgan Stanley
Thanks for thanking my question. I have a couple of questions on the same-store sales and on the other hand operating cost. So first question on the same-stores sales I just want to understand a little better with historical members and you commented on the Q2 nature disasters for example flooding and earthquake in this quarter. The same-store sales were down sequentially and I want to understand if I understand correctly the earthquake happened in May and flooding happened in June. Can you comment on the same-store sales growth in each of the month of the quarter which is April, May and June and so what we can see what kind of impact of the disasters on the monthly same-store sales trend and more importantly going forward for this quarter, for the third quarter and when we understand Olympics will have impact on the same-store sales and can you tell us what other trends you are seeing now because we are were in the third corns of the quarter?
(Foreign Language)
Lucia Qian
(Interpreted) In the second quarter actually we reported a minus 1.3% decrease same-store sales year-over-year. Digital wise if you see we reported minus 3 same-store sales decline in the first quarter of this year and the decline in the first quarter of last year, was also around 3% minus. So, you can see that we’re actually working our very robust to improve the same-store sales and to check the declining trend of same-store sales.
In terms of the monthly data for the second quarter April actually we reported a minus 2% same-store sales decline. In May we see a positive 2% same-store sales growth and June it’s a minus 1.5% same-store sales decline and in the third quarter we will see that in July, the same-store sales reported very much the same as the performance of the stores of last year in July and August due to the heavy impacted court by the regulatory changes associated with the Olympic games. The same-store sales in, August up to today is minus 5%.
(Foreign Language)
Lucia Qian
(Interpreted)
No actually we observed that the decline in same-store sales in August was primarily due to the regulatory change, but also partially due to the traffic that was kind of held back by the people habitat by staying at home more watching the game and since the Olympic game was over last Sunday, so these three days prior to Olympic days we see that the recovering sign in terms of the traffic to our stores.
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