Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Chris Svezia - Susquehanna Financial Group.
Chris Svezia - Susquehanna Financial Group
I guess just first of all, on that subject line, could you just go through again the expense reductions you saw during the first quarter, kind of just more plainly where they came from, where the buckets were and I guess more importantly, I know you’re making still some investments here. How sustainable, I guess, is that trajectory in terms of that G&A expense line? A little color on that would be helpful.
David Weinberg
Well, I think it’s a little bit of everyplace. We have basically, all areas where we deal, all our expense lines came under review, whether they were retail, wholesale, the Orient, domestically. So, I think it is fair to say that a little bit of it was everywhere. Even more so if you think that we had $3.8 million relating to China and Brazil, which is not significantly profitable, that we picked up just increasing our exposure there.
If you think about the number of units we had to move in the first quarter to decrease our inventory by $88 million and realize that that savings, that efficiency should flow through our distribution network as we color inventory and become a little more efficient versus less units to move around. I think it is positive to say, or did say that it’s certainly possible, depending on the scope of our business, to maintain this structure through these volumes.
We will see what happens to the economy as we move forward and we see how things develop as we get through the second and third quarters and see exactly what the changes are going to be, but I think what we have done and where we stand will remain constant through the second quarter.
We’re watching our overhead in all places. We continue in Brazil and China, but obviously, we will start to comp those expenses fairly soon. So, we don’t expect any big increases, although China will continue to open stores. So, I think what you see is what we are in the near term.
Chris Svezia - Susquehanna Financial Group
Then just on the inventory, how clean I mean, you guys seem to be pretty clean, a commendable job on the inventory here. How clean is retail at this point? It seems like most of your major channels in distribution are very clean. ASPs seem pretty solid. Any areas of, which you are hearing in terms of how your inventory position looks as it pertains to the product that you had to get ride of coming out of fourth quarter? Is that completely done at retail?
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