Question-and-Answer Session
Operator
(Operator instructions) Our first question today comes from Wendy Nicholson with Citi Investments Research.
Wendy Nicholson – Citi Investments Research
Good morning. My first question has to do with the guidance for local currency revenue growth, because in past quarters when you had an unusual shipping or shift in the sales from one quarter to the next. You called that out specifically, but since you didn’t this quarter I am wondering if that means there wasn’t that much advance selling or shift in timing. And if that’s the case, then it seems like the lack of a positive revision to your local currency guidance might just be a little bit extra conservative at this point since travel retail in Asia is coming in better. It sounds like things are just doing better generally, so I am curious why you didn’t raise that guidance for the full year.
Richard Kunes
Well, Wendy, there was a shift, but – you are right, it wasn’t a terrific amount of money. I think it was about $10 million to $20 million of holiday shipments that went in the quarter that we didn’t expect. Travel retail was a little bit stronger in the quarter, but it is pretty volatile. And we did have, in the first quarter, a very successful launch of better than anticipated of the Advanced Night Repair. So that was, in essence, one of the explanations why the quarter was ahead of expectations. But again, that’s a sell-in activity, that’s not a sell-through, if you will, so we believe that there is still some good reasons for caution around the Christmas season upcoming. And Thia can talk a little bit about what she sees in North America, but I think it is prudent for us to be cautious in the outlook for the upcoming Christmas season.
Fabrizio Freda
Hello, Wendy?
Wendy Nicholson – Citi Investments Research
Yes, I was hoping to hear from Thia. Was she going to add some more commentary there?
Thia Breen
I certainly will. Our retailers are still being very conservative. We don’t see sales exceeding last year in terms of the purchases that they’ve made, but certainly improving from last year’s comps.
Wendy Nicholson – Citi Investments Research
Okay. And it just sounds like I mean in travel retail, you don't feel like, for example you've stuffed the trade, we have been watching the (inaudible) data and it’s gotten a lot better. So in terms of expecting things to get worse from here incrementally, it just seems awfully, awfully, whatever, conservative on your part, which I guess is fine, it’s a great place to be. But at the same time we want to have a realistic outlook for what you think you can do this year.
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