Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Drbul – Barclays Capital
Robert Drbul – Barclays Capital
On the European trends can you elaborate a little bit more why you believe we’re at a crossroads in Europe and how you expect Europe to stay out of the macro headwinds that those areas are facing versus what we’re seeing here in the US?
Mathew Serra
Beginning in September, actually the first week of September, we began to see some very strong sales increases in our larger markets in Europe. And that’s a byproduct of several things. First, the apparel business experiencing a much needed turnaround and in Europe the apparel business is a much greater percentage to total then it is here in the US.
So we’re selling branded apparel extremely well in Europe. I think the other ingredient is we’re beginning to see competition drop out in Europe in some of those markets. There are some competitors that are closing stores and down scaling their operations and the promotional environment in Europe has relaxed dramatically.
Our footwear while we’re not comping positively, we’re down to very low single-digits and lately on many days comping positively. So the combination of those factors is what’s driving that business over there.
Now we also have a trend now, its close to three full months, and our profits during the third quarter in Europe were very, very good and they continued to flow good into the month of November. So with that said we’re very encouraged with the current trend.
Robert Drbul – Barclays Capital
You mentioned the upcoming Under Armor launch that you’re excited about I think at the end of January, are there any other launches domestically that you’re excited about, that you’re looking forward to from a business perspective?
Mathew Serra
There’s a tremendous amount of Jordan launches in the fourth quarter. We have more product then we had last year. That’s a given, that product will continue to sell well. Our Nike Shox business continues to be very, very strong and one dynamic that came into the system in the last I want to say month or so, is the six-inch boot from Timberland has come back very strong and that’s a big ticket out the door sale at $145.
So there are some encouraging signs there.
Robert Drbul – Barclays Capital
Has the overall environment provided any product opportunities from vendors that you hadn’t anticipated for or planned on?
- To read the full transcript on Seeking Alpha, click here »
