Question-and-Answer Session
Operator
Sure. Thank you. (Operator instructions) One moment please for our first question. And we go to the line of Paul Mammola of Sidoti & Company. Please go ahead.
Paul Mammola – Sidoti & Company
Hi. Good morning, guys.
Joseph Morone
Good morning, Paul.
Michael Nahl
Hi, Paul.
Paul Mammola – Sidoti & Company
Are you seeing anything in China right now that would cause you to temper or alter your forecast for the region for the next two years?
Michael Nahl
No.
Paul Mammola – Sidoti & Company
Okay.
Michael Nahl
I think, no. (inaudible) answer.
Paul Mammola – Sidoti & Company
Okay. Fair enough. Is there any further color on why PrimaLoft is doing so well? I guess, given the current environment, it might be a little counter intuitive.
Michael Nahl
Well, there’s not that much more we can add unless we – if you look at the home furnishing segment, which is smack in the middle of – which is serving precisely in the middle of the retail markets that are being terribly hit by the economy. That clearly got hurt. So over the performance was in the outerwear segment with growth in other countries as well. And so you’d have to say that the performance is despite a real drag on top-line from really ugly retail (inaudible).
Paul Mammola – Sidoti & Company
Okay. Let’s move forward. And in terms of the VLJ, is there any material weakness you see in their backlog right now or anything that we should be aware of going forward?
Michael Nahl
No. No, I mean they’ve had a change in leadership. The outside investors from Europe who have infused large chunks of capital have taken over the leadership of the company. But no, we’re not seeing – we’re not seeing any impact on our order picture.
Paul Mammola – Sidoti & Company
Okay. And obviously, oil is a primary component of the polymer strand. I guess, are we looking for that make its way into the model of the cost, into the model through say at the fourth quarter into early ’09 because like we’ve said before, there’s a lag in terms when some of these costs actually make its way through.
Michael Nahl
I think your timing is right. We’ve been fairly – in past calls, we’ve been fairly optimistic about our ability to handle raw materials increase its price. None of us foresaw the huge spike in oil prices that we’ve all experienced for the past couple of quarters. It has to hurt. It has to have an effect, but your timing is right.
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