Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Reed Anderson - D. A. Davidson & Co.
Reed Anderson - D. A. Davidson & Co.
First of all, nice job on the sales, particularly in the M&P and the tactical. Curious on the promotional environment. Obviously you were promotional but it seems like the demand is there right now. To what extent does your outlook today continue to bake in assumptions that promotional activity is going to be here for the next couple of quarters?
Michael F. Golden
That’s a good question. And just to kind of refresh everyone, last year in the third quarter was when we began the aggressive consumer promotions to help stimulate the business and move product through the channels, so we’re just really anniversarying, in the current quarter, those changes.
We have some rebate promotions in place that ago through the end of December. They were put in place earlier this summer based on what we were seeing in the business. So they were in place prior to what we’re calling this retail surge that we are seeing.
At this point in time, we are not expecting to continue those rebates after December 31,2008. And we will see how things go and kind of react off of the market. But certainly with the retail environment that we’re seeing today, if it continues through the first half of next year, we don’t see that as necessary.
Reed Anderson - D. A. Davidson & Co.
And on a related note, you also had commented in your prepared remarks that Sigma was very strong, I think you said 77% up.
Michael F. Golden
Yes, yes.
Reed Anderson - D. A. Davidson & Co.
Should we read that to mean that, because that’s a little bit lower price point, is that partly a trade down, do you think, or do you think that’s just a function of the promotions you’re running? How would you read that?
Michael F. Golden
The Sigma product has got kind of a unique position. It’s a very good product at a lower price point. It’s out there. And certainly the economic environment is driving people to certainly look at how they’re spending money and what they’re spending it on. But don’t forget, the M&P did well, too, even prior to this surge. So but certainly the price point is affecting the Sigma sales.
Reed Anderson - D. A. Davidson & Co.
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