Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Mitch Kummetz of Robert W. Baird. Please proceed.
Mitch Kummetz - Robert W. Baird
Yes, thanks and congratulations on the quarter. A question on your Q3 guidance, you are now expecting both your comp and your operating margin to be a little bit better than what you were kind of previously indicating on your Q1 call. Is that largely just based on the trend over the course of Q2, just coming in better than what you were initially anticipating for the quarter?
Trevor Lang
Yes, I think that’s right Mitch. A quick reminder; as we came out of the fourth quarter last year, our product margins were down over 310 basis points. We had expected to get some of that back in the first half of the year, and we’ve actually done a lot better than that. Obviously as Rick and I both stated, our product margins were flat through the first half of this year.
Now that we’ve seen some trends, and are planning for the back-to-school and holiday periods, we do believe we have the ability to continue that flat product margins, and frankly we have more opportunity in the back half of the year, because our margins were down more in the back half of ’08, relative to the first half of ?08.
I think in regards to comp, I think that’s right too. We explained on the year end earnings call and again on the first quarter earnings call, that we were very focused on making sure that our consumers understood the value we had, and value meaning more than just price, customer service, the products you can put together, unique brands, collective shoes, all of those things that made Zumiez special, and I think we’ve done a good job with the merchandizing efforts, the sales teams efforts, and the marketing efforts, to make a very poniard picture to our customers and we have a feeling that that’s going to be better for us as we move into the back half of the year.
Mitch Kummetz - Robert W. Baird
Then on Q4, I guess I was expecting to be a little bit more color on the quarter. I know on the Q2 call or I assume your Q1 call, you gave some preliminary kind of comp and margin parameters on Q3. As I think about Q4, you guys made the comments that you expect the comp trend to improve, Q3 over Q2 and then continue into the fourth quarter, and then also on the margins, flat product margins over the balance of the year.
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