Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Scott Krasik with C.L. King & Associates, Inc.
Scott Krasik - C.L. King & Associates, Inc.
My first question is on the non-core businesses. David, maybe talk a little bit about the general awareness out there of the new businesses, what the opportunity is, I know you’ve intentionally been running it as a sort of breakeven to gauge demand, and how do you see this really developing?
David A. Levin
Again, this is the year we wanted to manage the profitability and next year we will be looking for profitability. I think we’ve seen Living XL exceed our expectations in its potential, and I think our big opportunity in the future will be dressing the women’s side of the business. When they are coming in through the internet, we’re getting a lot of transactions from women because the stuff is non-gender related and that’s a wide open market for us. So, we see strong growth there. B&T continues to perform well and we’ve become more aggressive in how we market B&T from a price point of view and that seems to be working well. And footwear was just natural for us to get involved in and it’s responding extremely well and our footwear sales in our stores as a category have the highest comp increase of any other category as we’ve become more sophisticated about how we sell footwear, and again, it’s doing extremely well on the internet, and what’s interesting is that our transactions on the internet where customers are finding us and Googling in or keyword searching in, 50% of our sales are from customers who’ve never made a purchase at Casual Male or Rochester. So, we feel very good about these existing new businesses that we’ve launched and we’re getting excited about the new ones that are coming up right now.
Scott Krasik - C.L. King & Associates, Inc.
Dennis, how should we think about incremental G&A for those businesses; are you able now to keep that pretty flat?
Dennis R. Hernreich
No. I mean, the revenues are still growing; so we would expect next year, perhaps not a dollar for dollar increase that we saw this year, but SG&A will rise associated with non-core businesses, but as David suggested, we’re running at about breakeven and we expect to break even from these businesses this year, and next year they will be contributing.
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