Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Scott Krasik - C.L. King & Associates
Scott Krasik - C.L. King & Associates
What’s the dollar contribution or what’s the range you could sort of lay out for us, contribution in terms of wholesale from the new brands, Fergie, Fergalicious, Edelman, etc.
Diane Sullivan
In terms of for 2009 we expect those brands as well as a number of other initiatives across the enterprise to probably I’d say somewhere in the range of $50 to $60 million I think is kind of what we’re thinking about with those new launches.
Scott Krasik - C.L. King & Associates
In terms of distribution for Fergie and then Fergalicious excluding Famous.
Diane Sullivan
Actually the door count that I talked about on our last call continues to hold and actually has grown so net of Famous doors we’re still in the range of well over 1,000 for Fergalicious and Fergie less obviously because of the price point, that’s a brand that’s targeted for department stores and so that’s a little over 200 doors that Fergie will be in so we’re really trying to be very thoughtful and manage the launch of, and the opportunity for both of these brands at very distinct consumer segments and making sure we’re in the right channels as well.
Scott Krasik - C.L. King & Associates
In terms of this idea of managing the level of promotions versus the comps I guess January is a good example when you pulled back on the promotion the comp declined double-digits so what gives you confidence that even though your inventories are down a couple percent that once you pull back on the promotions that the comps don’t continue to decline in that high single, double-digit range.
Joseph Wood
Well as I mentioned we’re really cutting back on BOGO, there are, BOGO is a very good vehicle for us during high traffic timeframes however the other parts of the year its really just reduces inventory. We’ll replace the BOGO weeks that we’re cutting back on on other promotional initiatives that we have really aimed more at single pair promotions during the year so we really are cutting back dramatic on the number of BOGO weeks. Its just becoming over used and isn’t the vehicle we’d like to use other then the main drive times of the year.
Scott Krasik - C.L. King & Associates
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