Question-and-Answer Session
Operator
(Operator Instructions). Your first question is coming from Rick Nelson of Stephens. Please go ahead.
Rick Nelson - Stephens
Good afternoon.
Jeff DeBoer
Hi, Rick.
Rick Nelson - Stephens
Can you provide more color on the reporting irregularities -- how many stores and exactly what was happening in those stores?
Sid DeBoer
It's a limited number of store locations. But we are looking at others to be comfortable with these isolated incidences. And that's pretty much yet Rick. We are not over-alarmed by it. But it is one of those things we have to find a way to monitor better. Our centralization of our office functions will eliminate some of those problems that we may have had in the past in that area.
Rick Nelson - Stephens
I am surprised that, with all of the controls and Sarbox, that something like this could happen.
Sid DeBoer
They will make more than it is. We don't actually figure there is going to be any material involvement in it. But we couldn't get the financial report done and get the news out about our quarter without finishing this. So we need to get this done and get the news out, and then we will deal with anything that might come from that.
But we don't anticipate anything as our statements say. Although there is no assurance. We have to be sure everything is in line with our accepted practices.
Rick Nelson - Stephens
Shortfall in the quarter versus your guidance. How much of that do you think is macro-related, and how much of it is cultural shift and the move towards assured pricing?
Sid DeBoer
I think most of its macro, in reality. It's really hard to put a number to that, Rick. Some of it, the traffic count thing, I don't know that we spend enough marketing or not, but I know that we are trying to get the expenses in line at the same time. And the assured message takes time for people to respond to. It's not an immediate sell today message.
So it's hard to measure that. But I think its macro more than anything, because of this account, it was way down.
Rick Nelson - Stephens
How quick do you think a consumer at the store level can respond to these new assured pricing, is it months?
Sid DeBoer
Well, we see pretty good response in the Alaska, where it's been in place longer than anywhere else. But there was a J-curve there too, it took time.
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