Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michelle Tan - Goldman Sachs.
Michelle Tan - Goldman Sachs
I was wondering if you could give a little more color on the gross margin? How much of the hit was mark-downs that were taken in this quarter versus anticipated future mark-downs, and with the anticipated future mark-downs, how much of that is left over from fall goods versus new stuff that’s coming in that you are expecting to have to discount?
Glen T. Senk
I’ll ask John to answer the question, and I will just say in advance that we will not give specifics, we will give some general direction on that.
John E. Kyees
Around 30% of the missed to lasts year’s earnings was based on the change in the reserve.
Michelle Tan - Goldman Sachs
So 30% of the gross margin decline?
John E. Kyees
Yes.
Michelle Tan - Goldman Sachs
How about the question on whether that stuff that you’re still carrying over or whether that’s things that are newer into the store that you’re anticipating marking down?
John E. Kyees
It would be a combination based on the age and sales rate of the inventory, whether it was carry-over holiday or early spring.
Glen T. Senk
I will say that I believe our inventory is probably fresher than it’s ever been.
Operator
Your next question comes from Jeff Black - Barclays Capital.
Jeff Black - Barclays Capital
Nice job on the inventory but are we to assume that the down 13% reflects some sort of current run rate at the stores right now? Can you shed any light on that and whether that’s gotten worse as the spring has opened?
Glen T. Senk
I think in retrospect I wouldn’t have minded ending the quarter with a little bit more inventory than we did, and I think, as I said in the prepared comments, the trend within the quarter was relatively constant. We are seeing a little bit, and little bit is the operative word there, softer results in February than we saw in the fourth quarter but it’s not an important month to us and I really don’t have enough information now to kind of opine on our forward business.
The one thing I want to be clear about is, and I’ve said this over and over again, is that we develop our inventory plans based on our sales, not based on last year, not based on some absolute inventory number. So we are very weeks of sale driven.
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