Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Nishu Sood - Deutsche Bank.
Nishu Sood - Deutsche Bank
The first question I wanted to ask was about your guidance. You've improved the guidance by about $0.10. You mentioned, obviously, sales being the principal driver of that, but you obviously had a pretty nice performance in your margins as well. Even looking at the sales aspect of your guidance, your sales were down 24% in the first half of the year and you're assuming 18% to 22% for the year, so it sounds like you're assuming a pretty good improvement in the sales performance in the second half of the year as well.
So I'm just wondering what's behind just taking up $0.10. Is that conservatism or are you seeing other sources of deterioration in the second half of the year?
Timothy Wadhams
Well, the reality, Nishu, is that if you look at the guidance and look at the first half, the second half sales, I think, really factor out or calculate out to be within about $40 or $50 million of the first half. And basically we lost $0.08 in the first half and if you go to the midpoint of the guidance of $0.15 in essence what we're saying is that the second half is going to look a fair amount like the first half.
We obviously have better comparisons, if you will, later in the year just in terms of, as you recall, last year things really started to turn south in September. The third quarter and the fourth quarter were pretty tough.
So basically we're not looking for necessarily any deterioration in performance but basically looking at sales relatively flat first half to the second half.
Nishu Sood - Deutsche Bank
And the second question I wanted to ask was about the ERP implementation. This is something you folks have been talking about for some time now, obviously affecting the Cabinets group as well as the Installation Services group. I was wondering if you could give us more details on the ERP implementation? I know you might be doing that in your investor conference a few weeks from now, but what other divisions is that affecting, what types of changes might that mean for your operations, for your results? And, Donny, you mentioned that this is a pretty expensive program that you've undertaken over the last years; how much roughly are you spending on this ERP implementation across the company?
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