Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Drbul - Lehman Brothers
Robert Drbul - Lehman Brothers
First on the l.e.i. piece of it, you talked about the shift from Q3 into Q2 can you quantify exactly how much you pulled forward and how we should think about that? In the third quarter and as you look for the rest of the year, can you just talk about your replenishment assumptions for that business and how we should think about that?
John McClain
We shipped the $31 million that Wesley had talked about that that’s really what we pulled from 3Q into 2Q.
Wesley Card
In replenishment, we don’t have the actual stats here but we’ve got a plan that we worked out with Wal-Mart and targets for replenishment which I think we believe are pretty conservative and we’ll watch how that develops and then attack it accordingly.
Robert Drbul - Lehman Brothers
On the retail side, when you look in the back half of the year now having done this positive percentage for the second quarter how should we think about the opportunities in the back half especially around the apparel segment for you in your ready to wear businesses and what comp assumptions are you using in your guidance that you’ve given us today?
Wesley Card
I think we have a positive comp but much more conservative overall just given I think breaking it down in the way you asked the question I’ll take apparel first. I think we’re assuming a consistent comp with the first half down in that double-digit area just being cautious. We also, we’re very careful in our inventory plans there so we bought less inventory for the outlet stores for the back half. The assortments are better. The products are better across the board and we’re working on a number of areas to address that.
I think in--the climate was a big part of the problem. I think some of the merchandising and other things that we had put in place needed to be improved and we’re very focused on that. So I think even with a down comp assumption we think that the margins are going to be much better then what we experienced last year. Last year in the third quarter the apparel business started to move down significantly. It had been strong up until that point. So it’s a major focus at this point.
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