Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Reed Anderson – DA Davidson & Co.
Reed Anderson – DA Davidson & Co.
As we think about inventory and you are doing a good job getting that going in the right direction, and also receivables, but based on what you know today, what kind of inventory level either on a dollar basis or on a percentage makes sense as we look towards the end of this year?
Russ Hammer
Our inventory as you said, we’ve made very strong progress in the second quarter and we’re already off to a good start in the third quarter, we expect third quarter will continue to improve and probably be in the $200 million to $210 million range and then we continue to make that type of improvement into the fourth quarter as well.
Reed Anderson – DA Davidson & Co.
On the receivables side, have you made a lot of the progress there or is there more you can squeeze out of that as well?
Russ Hammer
We’ll continue to make improvement on our receivables as well. We’ve been tightening up with all of our customer accounts and just managing our terms with them. So we’ll continue to make progress there.
Reed Anderson – DA Davidson & Co.
You were talking about working with the key accounts, new POS, new in-store, as you think about what you term key accounts, what percentage of your business at least in the US might that—people like a Dicks or a TSA or a major department store, what might they account for, the key accounts?
Ron Snyder
Just over 50% of our doors today and I think what we’re doing now is we’ve seen tremendous results from the accounts, either our own retail or our retail partners, in those that have enough of our collection. So that’s where we’re focused now. We’re going to get better fixturing, we’re going to get more presence in stores, and consumers will be able to find our products where many can’t now. So that’s where we’re focusing. We’re still going to have a lot of the smaller retailers and we’ll have specific collections for those but we’re really focusing on that maybe 50% to 60% of the doors here in the US that have the space and the wherewithal to display our products.
Reed Anderson – DA Davidson & Co.
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