Question-and-Answer Session
Operator
Thank you. (Operator instructions) And our first question comes from the line of Bill Chappell with SunTrust. Please go ahead.
Bill Chappell – SunTrust Robinson Humphrey
Hi, good afternoon.
Leslie Blodgett
Hi, Bill.
Bill Chappell – SunTrust Robinson Humphrey
I guess the first question, is there any way that you could breakout what impact the destock had in the actual quarter, I know said sell through was positive trend, I didn’t quite understand does that meaning it was up year-over-year or is it just better than the 5% decline this category saw?
Myles McCormick
It’s positive year-over-year, positive growth year-over-year. In terms of breaking out for de-stocking trends, what I can give is a fair level of detail, but I am surprised to say it was the only business that we had down.
Bill Chappell – SunTrust Robinson Humphrey
Got it. And from a gross margin standpoint, as I look forward, it sounds like it shouldn’t get a whole lot worse, it sounds like this is kind of the new medium in terms of consumers buying open box and a shift to the higher channels at this point.
Myles McCormick
I think there is two things. One is the shifting of the channels. This quarter, we had a much larger percentage of the business being done in the direct retail business and given the fact that we have more boutiques opened, that was part of the shift and certainly the other part of the shift has to do with the dominance of Goldman Sachs products. Certainly I think if those trends hold true, we will continue to see that. I think over the near term, that is a reasonable conclusion to draw, but as you said before given visibility continues to be constrained, we hate to speculate far behind that.
Bill Chappell – SunTrust Robinson Humphrey
Okay. And then just one last for Leslie, can you give us a little more color in the decision to get to the – go to the matte foundation part of the market. I mean does it dilutes your kind of uniqueness that comes with their minerals and or – and how do you see it cannibalizing the core business overtime.
Leslie Blodgett
Well, we first heard about this matte foundation idea from our customers. It’s just to finish that some people with oilier skin want controlling oil part of it, and then when we did the research and found out that 50% of the prestige market is in that, it’s has the same beautiful benefit as the original, just has a different finish and we have a little bit more interesting, tough to say that it, but I think it’s a great move for us for our incremental for new customers, for younger audience. So I definitely I think it’s jus a natural progression for us.
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