Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Scott Krasik - C.L. King & Associates
Scott Krasik - C.L. King & Associates
Madden Girl was great, it wasn’t up all that much in the first quarter was there a timing issue there or can we expect this sort of rate of increase in the back half of the year?
Edward Rosenfeld
Yes, there was a little bit of a timing issue but really the business is just accelerating and you’re going to see some pretty substantial growth in the back half as well. I don’t know that it will be 94% but certainly we think we can be up north of 50% in the back half.
Scott Krasik - C.L. King & Associates
This is getting to be almost as big as l.e.i. was at its peak almost. Can it be bigger then that at this point?
Edward Rosenfeld
Sure I don’t see any reason why Madden Girl couldn’t be a $60 million business over time.
Scott Krasik - C.L. King & Associates
The inventory that you gave at $35.3 million how does that breakout wholesale versus retail?
Edward Rosenfeld
We had $22.2 million of wholesale inventory and $13.1 million of retail.
Scott Krasik - C.L. King & Associates
Planning on growing in wholesale obviously in the back half, retail how are you planning that business?
Edward Rosenfeld
Retail should grow as well.
Scott Krasik - C.L. King & Associates
We heard a lot in the spring about cancellations coming from retail customers, can you give a sense of how that affected you and do you think that’s going to be an issue in the second half of the year and if so when will those start coming?
Edward Rosenfeld
No we haven’t experienced that. Certainly we’ve experienced wholesale customers trying to keep their inventories lean and being conservative in their budget and in their planning, but we haven’t experienced cancellations and because of the strong sell-through in our product, we’re really maintaining our budgets much better then we believe most of our competitors are.
Scott Krasik - C.L. King & Associates
Generally I think you experienced some cancellation of reorders in sort of September timeframe last year, was that--?
Edward Rosenfeld
We didn’t get reorders. There were some reorders that we didn’t get; I wouldn’t say they were cancelled.
Scott Krasik - C.L. King & Associates
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