Question-and-Answer Session
Operator
(Operator Instructions) We will take as many questions as time permits and we’ll take your questions in the order that you signal us. (Operator Instructions) We’ll pause for just one moment to assemble the queue. We’ll take our first question from Ed Aaron with RBC Capital Markets.
Edward Aaron – RBC Capital Markets
A few questions for you and I’ll tread lightly because I know you’re limited on what you can say about anything guidance related but, in terms of the inventory and the right level of inventory can you kind of give us some sense of the inventory turns that you’re going to be managing the business to going forward?
Michael H. McLamb
Our turns have been in the low twos of late, I say of late, the last couple of years 2.3 times or so. We would like to maintain that level of inventory turn or make it better.
William H. McGill
Or make it better but you can’t, Ed as you know, you can’t adjust it over night especially in a decreasing sales environment which we experienced during the quarter.
Edward Aaron – RBC Capital Markets
Have you already made additional changes to your purchase? Or, is that something that you’re talking about and evaluating?
Michael H. McLamb
I said in the prepared remarks that we made some adjustments since we last updated you. When we last updated you we said 20% down in units 15% down in dollars. We are now modestly greater than that in terms of dollars. It’s not a significant amount greater yet, we’re in discussions with each of our manufacturing partners right now. We’re looking at current trends by model, by unit, by type and trying to make sure with our manufacturing partners that we’ve got the right levels of inventory for the marketplace. I think the important thing is and this is really for everybody on the call, you’re going to hear some pretty big unit declines. We put out there 25% in markets that we’re talking about the dollar declines are less than that. I think what is key is to track our same store sales, which again we don’t have a lot of visibility to what that’s going to be for the next couple of quarters here but the 9% decline in same store sales and the 15% reduction in purchases, you get a reduction in inventory. So, the dollars are what’s going to drive the reduction a lot more than units.
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