Question-and-Answer Session
Operator
(Operator Instructions) We’ll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Arvind Bhatia with Sterne, Agee.
Arvind Bhatia - Sterne, Agee
Good morning, everyone.
Jack Friedman
Good morning Arvind.
Arvind Bhatia - Sterne, Agee
Couple questions first one is for Joel. Joel, as we look at full year gross margins, what do you guys thinking at this point? Are you thinking gross margins will be up versus last year? Just trying to get a sense of how Q4 will shape up there. And then the two acquisitions you mentioned did about $60 million in sales last year. Are there going to be some lines that you will discontinue within that or are you pretty much keep everything and then try to grow that business? And if you can give us a sense of margins for those two acquisitions that would be helpful.
Joel Bennett
Okay. In terms of the first one, margin, the margins are a little bit lower to a couple reasons this quarter, one of which is product mix. We've sold a lot more of the basic items within the CDI line. Also, we had a couple of non-performing licenses that had inventory and also minimum guarantees that we had accrued against.
Jack Friedman
I'd like to, this is Jack, I'd like to interject into that. We've also had a difficult time with managing costs in the Far East. There have been many, many price increases in commodities and labor and shipping, particularly in third quarter. We hope it's easing up now with the reversal of commodity prices and oil prices and expect to have a little less pressure on margins in Q4 and next year.
Arvind Bhatia - Sterne, Agee
Okay. So for the year, Joel, do you think you should be modeling flattish gross margins at the point?
Joel Bennett
Q4 still down a little bit because of product mix.
Arvind Bhatia - Sterne, Agee
Okay. And then the two acquisitions?
Joel Bennett
We're still evaluating the go forward but, in general, Tollytots had the higher volume with lower margins, and the Kids Only with the higher margins. They're basic licensed products and the product lines they have kind of run the range that we do. Although they're average margins are a bit lower. As private companies, and we've seen this with prior acquisitions, with private companies their concern is less for margins say as a percentage as opposed to being profitable companies, which both of them are.
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