Question-and-Answer Session
Operator
(Operator instruction) Our first question is from Robert Drbul from Barclays Capital.
Robert Drbul — Barclays Capital
Couple of questions, first on the Nautica business, can you give us an update on the year-to-date, why you guys have done well or where your shortfalls and sort of. And as you think about the business for next year for the Nautica business, any ideas in terms of both top line and bottom line are higher for next year as well. And then on the 7 business, can you give us a dollar numbers around the off price business and sort of the negative impact that has had on the business being negative right now or down sales and percentage of sales of 2009 versus 2008 sort of how to think about that business?
Eric Wiseman
I will start with the Nautica comment and talk about what changed this year. You might remember Bob, going back on the first part of this year; we were redoing the Nautica business coming into 2009 with updated products that were more expensive in price point, better built. They were worth more money but not in this environment and that really affected the first half of this year but we took our average price points up or we tried to, which was the right thing to do going into, what we did not know is going to be a recession. The change for the back half of the year has been, we have adopted more value price points and more value products and that is working much better for us as you might imagine in this environment. I cannot comment specifically on 2010 at this point, but we will do that in February when we cover 2010. On the 7-For-All-Mankind question, I do not know if we have that information available.
Robert K. Shearer
It is not specific dollars Bob, but what I can tell you is that the reduction in the off-price channel is about 15% from the prior year, I know you are looking for specific numbers. But it has impacted our year overall and we think it is the absolutely right thing to do for the brand.
Robert Drbul — Barclays Capital
Okay, and then is there a longer-term, more philosophical questions in terms of looking at the numbers, I guess going forward in the 2010 without talking specifically to 2010 guidance? Eric when you look at the various puts-and-takes of the business, pensions versus foreign exchange and the benefit of not having the $0.30 issue in the fourth quarter of this year. When you plan forward in the next few years, how should we think about it from core operations perspective in terms of long-term VF targets versus the pension or foreign exchange issues that you had as you look forward to 2010? How should we think about that?
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