Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from the line of Tom Filandro with SIG. Please go ahead.
Tom Filandro
Kudos, again, for bucking the trend. An amazing job, so great quarter.
Dennis Nelson
Thanks Tom.
Tom Filandro
Couple of questions. First can you just -- there's lots of talk out there about upward pressure on costs. I think you mentioned some costs related to the Internet and we are hearing it, both the product side as well as operationally. Can you just provide maybe a view of how we should think about IM use for the balance of the year and into 2009? And can we still expect leverage on the selling expense side when we exclude, of course, incentive bonus over that same period?
Dennis Nelson
Well, on the cost side of our product, we are seeing some increases in certain categories. And what we're finding though is some of that is due to more uniqueness details or fashion styling or improved quality in certain products. So in those cases, we are able to keep our margins and feel good about it. So to a small degree, there is some pressure there. At this point, I don't see that as a big concern. When the fuel -- the surcharges on the fuel, we do have some expenses there. I'm not sure if Karen has any comments on that part.
Karen Rhoads
I mean, we do see increased -- from fuel costs not just the surcharges on shipping costs but also like our bags. Some of the products that are poly-based. So we are seeing some increased cost there and are just working to try and minimize those or to make sure that we're buying in the right quantities and the right times. So we are just trying to make sure we are playing that as smart as we can.
Tom Filandro
Okay. So, Karen, just generally speaking the comp, obviously, you had some very strong comps. So you have the opportunity to leverage. Is the overall comp needed to leverage the slightly higher expense structure above what it had been previously? Or what's the typical number we can look at in terms of thinking about leverage on, say, selling expenses?
Karen Rhoads
I think that's a good question. We haven't put that pencil to see what that change in that number would be. But I guess just with the costs that we are seeing it probably stands to raise that it would take a little more comp to leverage than it would have in the past.
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