Question-and-Answer Session
Operator
At this time ladies and gentleman, if you wish to ask a question please key *, followed by 1 on your touch-tone telephone. If your question has been answered or you wish to withdraw your question, please press *2. Please press *1 to begin and please stand-by for your first question.
And your first question comes from the line of Mike Grant with Diker Management.
Mike Grant - Diker Management
Hi Bruce. Hi Joe. Good morning. Wanted to ask you guys a little bit about the unit and volume trends relative to the reported dollar-sales trend? I’m just trying to understand a bit more about the competitive dynamics that are out there right now.
Joseph W. Baty
Well I would say from a unit movement standpoint, there’s more of a growth story. From a sales standpoint, because of the pricing pressures there’s less of a growth story or a relatively flat story.
Mike Grant - Diker Management
OK, can you?if you’re reluctant to put actual numbers on it, can you just sort of give me a feel for what the split might be between the two?
Joseph W. Baty
Well, our overall sense is, and again we can’t access data for all accounts as far as movements for all brands and so forth, but our overall sense based on our business is that volume, the unit movement, is clearly up in something in the single digit range. But again, back to the higher level of pricing, it doesn’t end up being reflected from a dollar standpoint.
Mike Grant – Diker Management
O.K. My next question is just on the private-label business. In the past you would make comments, I believe, and maybe I’m wrong on this?that you were de-emphasizing that somewhat, that it wasn’t at levels that you found profitable? Has this come back to levels that you find profitable or do you just feel that you need that through put from a utilization standpoint? Why are we doing so much more of that? Not that it’s a bad thing but I just want to understand where you guys are going with that.
Joseph W. Baty
Well, I wouldn’t say that we’re doing dramatically more. I would say that if you were to back up the clock to, say fiscal 2005, our overall split between branded and private-label was closer to 70/30, or 72/28-ish kind of split, branded/private-label. And then in FY06 it became closer to 80/20 branded/private-label. And overall for FY07 we really expect a fairly consistent split.
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