Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Chris Svezia - Susquehanna Financial.
Chris Svezia - Susquehanna Financial
A couple of questions; I guess first, Matt can you just maybe add a little bit of color in terms of the sort of early trends that you’re seeing on back-to-school? You mention that they are currently trending negative.
I was wondering if you can maybe talk about, is there any specific geographic differences, whether those markets that have turned and have gone back-to-school, already what you’re seeing versus those markets that have not, and any color in and around that will be helpful.
Matt Serra
Yes. This is going to be a tricky back-to-school season, because there are more changes quite frankly than I’ve ever seen. The markets that have gone with the back-to-school cycle, are running down mid-to-low single digits and in some cases are running increases.
There’s a huge shift with Florida, they started this week and our divisions are beginning to well down there. There was a shift in Texas with the tax holiday which begins today. So I believe a week back shift from last year, and we started comping without the tax shift, possibly the last day or two.
We do 25% of the big Foot Locker business in the Northeast market, and basically in the low 20s in the rest of the U.S. divisions. That is also pushed back because of Labor Day shift. So it’s going to be pretty difficult to get as a succinct read on how we’re really doing until like next week at this time. I think we’re going to perform better than we have been performing in the last quarter, that’s what the indications appear to be pointing towards.
Chris Svezia - Susquehanna Financial
Then just on the inventory, you continue to see nice reductions there. I guess, could you just talk about, are you continuing to cut your receipts and your buys working on what’s working and what’s not?
You made the observation about managing inventory relative to sales; are you looking maybe to get a little more promotional drive traffic, or are you still looking to hold the line as you go in the third quarter? Maybe any color between U.S. inventory versus what’s going on in Europe in terms of the inventory position?
Matt Serra
We’ve always had a very large business in Marquee footwear being $100 and above. It continues to drive our business, makes us different from a lot of our competition. With that said, the environment is changing and I think we have to walk and chew gum at the same time.
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