Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Rupe - Longbow Research.
Mark Rupe - Longbow Research
Just two questions. One, when you mentioned that you were talking about some new broadening the product offering, were you speaking to mattresses or were you speaking to possibly opening it up to other types of products?
Mark A. Sarvary
Fundamentally I’m talking about mattresses. Obviously we have other products like pillows and the Ergo space systems so there are other things, but fundamentally I am talking about mattresses and sleep systems.
Mark Rupe - Longbow Research
Okay. And then secondly, any insight that you could give on some of the cost leverage you have, or cost containment or cost reduction you have on the operating side looking into 2009, whether it’s fixed costs or some more of the variable stuff that you can do if volumes are like this, continuing into next year?
Dale E. Williams
From a cost standpoint, obviously we will tightly control all of our costs, make sure that the things that we’re spending money on are things that will give us quick and immediate pay back. We will continue to advertise. We will continue to invest in R&D. but the advertising will be in line with the sales. Beyond that, we are tightening our expenses, we had a large headcount reduction earlier in the year. We are continuing to allow headcounts to decrease across the business through attrition. And so we’re just trying to make sure that everything that we’re spending money on is prudent and things that we absolutely need.
Mark Rupe - Longbow Research
As it relates to the domestic kind of trends, obviously I think you mentioned 30% overall and more domestically, I’m assuming that is kind of based on kind of the last three quarters of trend. Is that fair to say, how things have gone domestic, a little bit worse than 30%?
Dale E. Williams
You said last three quarters.
Mark Rupe - Longbow Research
I’m sorry. The last three weeks of the month of September.
Dale E. Williams
The domestic business, as you can imagine, has slowed down significantly with the financial crisis that has impacted almost all consumer companies.
Mark Rupe - Longbow Research
But I mean as far as the assumptions for the fourth quarter, are they in line with kind of how things have trended during the last part of the quarter, or are they worse than the last part of the quarter?
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