Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from William Chappell - SunTrust Robinson Humphrey.
William Chappell - SunTrust Robinson Humphrey
First, looking to both fourth quarter and 2010, it's certainly nice to see that sales are flattening out or maybe see some positive news, but I would assume that you have at least a 1% to 2% tailwind from currency.
And I think last quarter you had expected to be flat to up anyway, so is there any change in demand you're seeing? Have you won any new contracts since we last talked after the second quarter, and are there any new contracts that you still could win between now and year end?
Neal V. Fenwick
In the third quarter currency was still adverse for us. It become favorable in October, and so at that time it will become a tailwind, which will help us. And certainly through the first half of next year it's also going to be beneficial. So you are absolutely right, currency becomes a help but actually in the third quarter it was still a drag on the business.
In terms of our ability to pick up additional contracts, I'll Bob answer that question.
Robert J. Keller
I think we looked at the third quarter and felt it was pretty solid and now the question is whether or not that will translate to the holiday season, but the back-to-school season came in at least as well, as we expected. And as I mentioned in my remarks, we recently were awarded a contract at Target and if we execute well on that I think we have reasonably significant expansion opportunities there, so we feel good about that.
William Chappell - SunTrust Robinson Humphrey
So I shouldn't read anything into next year's somewhat conservative guidance other than it's just too early to tell?
Robert J. Keller
I think we would like to get into the mode of under-promising and over-delivering. I don't know that historically we've been particularly good at that and so, yes, we're just calling it as we see it.
William Chappell - SunTrust Robinson Humphrey
I'm all for that. Second, just looking at the back-to-school season, any reason that you can tell why it was a little bit better than expected? I think the general theme three or four months ago was it was going to be a horrendous back-to-school season and it seems like for both you and Rubbermaid it was a little better than expected. Any idea why that was?
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