Question-and-Answer Session
Operator
(Operator Instructions) We will take our first question from Matt Nemer with Thomas Weisel Partners.
Matt Nemer - Thomas Weisel Partners
Good morning, everyone. My first question is if you could just talk to your brand positioning and merchandising if this malaise that we are in lasts for another year or two or three years, and customers are turning towards discounters and coupon usage. Does it make sense? Is there anything you can do to the marketing or merchandising to have more of a value message, or do you think that that would damage the brand longer term?
And then just one quick question, follow-up question -- on SG&A, I guess it was down about 11% per square foot. Can you give us any clarity on how much of that is coming from retail, marketing, or corporate, et cetera?
Sharon L. McCollam
I’m going to let Howard take your first question on how he sees the larger macro, if it was an extended period of time. So Howard, will you please take that question? And then I’ll come back on the SG&A.
W. Howard Lester
Matt, I think none of us know how long this is going to last, or the extent of it, so I would think at this point in time that we should keep doing what we’ve been doing here for 50 years in building these brands, and value is part of that. I mean, I think if this worsens or gets deeper, we’re not going to be unaware of the fact that the customer is looking for value but I wouldn’t do it to the extent that it changes the premise of the brand. So I think we’ll just kind of measure that day to day. That could have some affect on merchandising trends and how we react to those and we’ll react to what the customer is saying to us but I don’t think we’re thinking about a material change in the brand, if that answers your question.
And the second one, Sharon, I’ll turn that back to you for that.
Sharon L. McCollam
Yes, Matt, were you referring to the third quarter or the full year?
Matt Nemer - Thomas Weisel Partners
Sorry, I was actually looking at the second quarter.
Sharon L. McCollam
Oh, at the second quarter -- the drivers in the second quarter were ad costs -- that was the big driver -- and then where we are seeing additional SG&A reductions are virtually in all of our headquarters and corporate departments. Those would be where they would see them. You are going to see the majority when you get segment reporting coming in the direct-to-customer channel, and then the corporate non-allocated.
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