Bare Escentuals, Inc Q3 2009 Earnings Call Transcript

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2009-10-29 19:33:07.0

Tags: William Chappell, Call Transcript, Quarter, Earnings, Sales Strategy, Financial Accounting, Sales Force Management, Sales, Finance, Seeking Alpha, Bare Escentuals Inc.

Question-and-Answer Session

Operator

Thank you, ma'am. We will begin the question-and-answer session. (Operator Instructions). And our first question comes from the line of Bill Chappell with SunTrust. Please go ahead.

William Chappell – SunTrust Robinson Humphrey

Hi, good afternoon.

Leslie A. Blodgett

Hi.

William Chappell – SunTrust Robinson Humphrey

I guess first just looking on the gross margin side, I mean it continues to move higher of above pretty hard base, are these numbers sustainable, can they go higher from here, how should we be looking at from this third quarter number?

Myles B. McCormick

Yes, again third quarter were flat, the continuation some of the trends that we've seen, know over the past three quarters, that is shift in product mix, greater part of our product mix stock versus as well as channel mix, in fact a greater portion of the sales mix contributed by our Direct to Consumer businesses and that is. Our expectation would be over the near-term that would very consistent from however looking at the product mix going over the longer-term. There are other implications that is related to strategies we may be employing with respect to your rejuvenating some of the aspects of -.

William Chappell – SunTrust Robinson Humphrey

And looking at the top line numbers for the quarter certainly impressive both for U.S. and international but trying to understand how much of that is driven by this sell in of new products and no I don’t give quarterly guidance of each. Should we still assume that this fourth quarter is the biggest in terms of sales and earnings in this year.

Myles B. McCormick

Certainly and then specifically for the quarter I know that is going to be a question I mean if you have related to sell ins versus sell through. As Lucy noted in her prepared remarks sell through was positive in the quarter for our third quarter in the row here. So we are really proud of that. In regards to that the difference between sell ins and sell through. Sell in did exceed sell through by few points in the quarter largely again related to the sell in of those math as well as boxes in some of your new launches.

William Chappell – SunTrust Robinson Humphrey

Okay. And just last one I will keep asking this but should I now look at this quarterly number for on the direct-to-consumer as the base number or could I actually take a step down from here?

 

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