Question-and-Answer Session
Operator
Ladies and gentleman at this time we will be opening up the call for the question and answer session. Please press *1 on your touch-tone phone if you would like to ask a question. In order to allow time for everyone’s inquiries to be answered management asks that you please limit yourselves to one question and then return to the queue to ask any follow-up questions. If your question has already been answered you may remove yourself from the queue by pressing the pound key. Also, if you are using a speakerphone, please pick up the handset before pressing the button.
Your first question comes from Jody Kane of Fidelity and Company.
Jody Kane – Fidelity & Co.
Hi, thanks, I just want to get a better idea of the slower growth rate in ’08 than we’ve seen in previous years. Is there anything that you can put your finger on why we’re not looking at 18-20% growth?
Richard J. Cote
Well, I think I’ll take a crack at answering that. We believe that we’re very well positioned to continue to expand our operating profits as a percentage of sales and that’s what we’re focused on doing at the same time continuing to build a healthy and strong base for future expansion and we believe that the range that we’re in of approximately 14% is the correct range for the year.
Jody Kane – Fidelity & Co.
And then it sounds like the licensing brands are doing very well. Is there more expansion opportunities there or can we look for a bigger jump over the next several years in corporate brands?
Efraim Grinberg
Well I think that the expansion opportunity in the license brand is organic meaning that one of these brands we haven't even launched yet, Lacrosse. Two of the brands, Hugo Boss and Juicy Couture, we just launched this past year so we see accelerated growth opportunities over the next several years in those brands as well as we believe that the Concord brand, not this year but next year, will return to sales growth and we continue to experience very healthy sales growth in Ebel as well as a very solid improvement in the Movado and the SQ brand.
Jody Kane – Fidelity & Co.
And I've got just one more question. The advertising expense of '08, is that going to be in line with what it was this previous year or is it going to be increased?
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