Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from the line of Shawn Milne. Please proceed.
Shawn Milne – Janney Montgomery Scott
Thank you, and thanks for taking my questions, and congratulations on the transaction, just one at the strategic level and then one for Michael in terms of guidance. Just first on getting into the space, clearly in the last couple of years, we have seen channel conflict go away with what’s gone on in the economy, I mean we have seen eBay and some others look at the secondary market a little bit more proactively. One of the companies that we saw chopped out of work this year was gilt.com. I wondered if you can maybe just address how Rue La La looks relative to Gilt, and my understanding was given Gilt’s recent evaluation at the VC round was $400 million, if you could maybe confirm that? And then secondly, in terms of guidance, Michael you talked on the last call that the $107 million that the Street was looking for was a bit low. If I look at – yes, I think the Street number now is $115 million in fiscal 2010, are you saying that we could add the $15 million in here that you would endorse $130 million, is that the best way to think about it? Thanks.
Michael Conn
Go ahead, Ben, probably best position to talk about Rue in terms of how they fit into the overall landscape, and then I will touch on the guidance question.
Ben Fishman
So I think a couple of points Shawn. First of all, channel conflict and all, one of the real value propositions in using Rue La La is the pace of which these events take happen. We are able to move through so much inventory, but we are also able to do it so quickly.
Where historically where channel conflict exists is where products sit on shelves for a long period of time or ones exposed to everyone, everywhere, all the time. And so the pace with which we sell product and also the exclusivity in the membership-only really has alleviated the channel conflict, hence why brands see this as a solution through a challenge versus an additional exposure.
As far as the competition goes, there has been a few different people that have gotten into the private sale space over the past couple of years, and I think good for everybody, there has been some good success out there.
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