Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Elizabeth Pierce - Roth Capital Partners LLC.
Elizabeth Pierce - Roth Capital Partners LLC
A couple questions on the revenue guidance. The metrics that we see in terms of average orders and items sold, can you just kind of guide us to what you think will be the biggest drag or what you’ve modeled to be to bring that down?
Lawrence Y. Kong
I think the average order size and dollar amount per order will be not significantly lower but as we can all see in the current economic climate volume is going to be lower and I think that’s the way you should look at it.
Elizabeth Pierce - Roth Capital Partners LLC
Lawrence, you’re saying that average order size of $175 if I understood you correctly?
Lawrence Y. Kong
Yes, the $175.
Elizabeth Pierce - Roth Capital Partners LLC
That has been relatively constant. So you really think it’s just the number of people?
Lawrence Y. Kong
Yes.
Elizabeth Pierce - Roth Capital Partners LLC
Can you tell us how the cadence went in the quarter? Does it coincide with everything else that we’ve heard at retail kind of in week two of October is when you really saw a fall-off or as you said a hesitancy? Maybe walk us how the quarter went cadence-wise in terms of orders and where you notice the hesitancy?
Lawrence Y. Kong
As you can see the traffic to our site remains pretty good but there is not a lot of as you can see people are committing to making the purchase. I think with the election and with the fact that there is a crisis in the financial markets a lot of people are scared and we believe that they are waiting longer to shop and that’s what we expect at this time.
Elizabeth Pierce - Roth Capital Partners LLC
I guess what I’m trying to isolate is you saw this really in kind of August/September and it’s continued into October?
Lawrence Y. Kong
I think the crisis really went into free fall in September and we started seeing some of it in September.
Elizabeth Pierce - Roth Capital Partners LLC
Are you seeing something similar in your foreign sales? Is it the same kind of thing? Same pattern?
Leon Kuperman
It’s a little bit trickier to tell with some of the new foreign sites because we’re on a growth path with them whereas we were anticipating in the past foreign translations may be a highlight of the holiday season. We’re starting to see that that may be also difficult times for the international community as well.
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