Question-and-Answer Session
Operator
(Operator instructions). We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Mark Mahaney with Citigroup.
Mark Mahaney – Citigroup
I’m sorry, can you hear me?
Diane Irvine
Yes.
Mark Mahaney – Citigroup
Sorry about that. Two questions, please. First, I know you talked about already the impact from the currency localization. Could you quantify that at all in any of the international markets? And just to clarify, are you localizing in every one of those 40 markets? And then secondly, are you – did you see particular steps you can take to accelerate market share gains on the US through the balance of the year, given the falloff in some of the competitive set? Thank you very much.
Diane Irvine
Thanks Mark. In terms of the currency localization, of course the largest part of our international sales relates to Canada and the UK, which already had local currencies. So, the new currencies that we launched would relate to all of those new markets that we opened up last year.
So again, those are a very small part of the business today, but I think the great thing is that anything we can do to take away a hesitation to purchase or any impediment to purchasing I think is fantastic for the customer, where someone is more likely to purchase perhaps in their own local currency. So, it’s very early Mark, but we are pleased with what we see and I think the international story for us is one that’s – long term, there is a great opportunity for us.
In terms of domestic market share, I really think the landscape today plays in our favor, plays to our strengths, we are able to be profitable, have a great cash flow, we can improve our customer experience while the landscape in physical retail is very, very troubled today in jewelry. So, I see our ability to continue to enhance market share there as we go through the year.
Mark Mahaney – Citigroup
Thank you, Diane.
Operator
Your next question comes from the line of Douglas Anmuth with Barclays Capital.
Sujay Shah – Barclays Capital
Hi, this is Sujay Shah in for Douglas Anmuth. Thanks for taking my question. You seem to have made good progress on managing inventories this quarter. I was wondering what you think is the right kind of inventory level going forward and especially, since you are factoring in a recovery later in the year, do you expect an increase in inventories?
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