Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Budd Bugatch - Raymond James.
Analyst for Budd Bugatch - Raymond James
Good morning, everyone. This is Chad filling in for Budd. First question, in regards to the reduction and the revenue outlook, we took things down from mid to high teens to down 20 to 25 and housing starts, you are assuming are at the low-end of the previous range and key retailers' sales in the quarter were actually pretty consistent with what you had talked about for the full-year run rate last quarter. Obviously, Q1 sales, I would assume that they were below the internal expectation for the quarter but I guess what really drove their reduction? Are you assuming if Europe weakening worsens, is there an expectation for a retail to get worse in the United States or are you just adding some more conservatism?
Tim Wadhams
No. I would not fairly say conservatism. This is basic, we build up our forecast from the bottom up and one thing that I would point out is that we currently estimate that foreign translation will cost us about $300 million for the full year and that we add about $85 million in the first quarter. We are anticipating that we will have, probably, the rest of that will be evidenced in the second and third and third quarter. Now, we had a pretty good hit in the fourth quarter of last year as the dollar started to strengthen. So, I think, Chad, it reflects that, it reflects, just in general, I think, a little bit more slowing. Our first quarter came in. A couple of percentage points lower than we anticipated when we talked to folks back in February and that was really kind of across the board if you will. I think that when we think about the additional sales decline really is pretty much across all the businesses both international as well as repair, remodel, and new home construction.
Analyst for Budd Bugatch - Raymond James
Okay. Given that reduction to the revenue outlook, I would have anticipated a bigger hit to the EPS outlook. Could you kind of maybe walk us through or help quantify some of the incremental benefits that you expect will offset deleverage?
Timothy Wadhams
Yes. Actually, (that is a very good question, Chad), as we talked in the first quarter when we provide the guidance, we anticipated that at that point in time that we would achieve about $120 million of cost-structure improvement over last year. That broke down about $60 million related to savings from some of the actions that we have taken. The other $60 million was related to the relationship between price and commodities and that is total $120 million roughly.
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