Question-and-Answer Session
Operator
(Operator instructions) We will take our first question from Greg McKinley from Dougherty & Company.
Greg McKinley – Dougherty & Company
Yes, good morning. I wanted to understand where you are in your process of inventory reductions, obviously you made significant strides in the September quarter largely due to a clearance activity, I know you indicated your plans would be to have further reductions in inventory levels in 2010, but are you still sort of behaving similarly from a promotional standpoint and clearance standpoint here to start the beginning of a new fiscal year or should we expect to see a fairly quick into some of that real aggressive promotional activity?
Bill McGill
Greg, if you look at our mix of inventory, we still have some models as an example in the Freddie Group that we will continue to discount and have (inaudible) some other product that we did not move that we will continue to be aggressive on, but all in all, most of the inventory is fresh as we mentioned and is newer inventory and so we should be able to get back to the higher margins. We just finished up before Lauderdale Boat Show and it as a good show especially for some larger boars, and as we mentioned, the margins seem to be holding up very well on the ’09 products and most of what we have now is ’09. So we are encouraged by the show, we are also encouraged by what looks like October to make a quarter, but looks like October same-store sales are up also.
Greg McKinley – Dougherty & Company
Okay.
Bill McGill
We have got a little mix issue that we are still working through with some of the products but it is very low and I think we exceeded even our greatest expectation zone for what we did this quarter.
Greg McKinley – Dougherty & Company
Okay.
Bill McGill
Greg, I would tell you the pockets of challenges that we still have are very manageable and from a total dollar level, we are pretty close to where we need to be on inventory. The team did a great job getting us to where we are now.
Greg McKinley – Dougherty & Company
Yes, absolutely. I have looked back historically, typically we see a seasonal increase in inventory levels per store in operation from the September to December quarters, I would imagine your inventory management behaviors through this cycle are not typical. So, are we going to see that surface again or is this sort of a new approach to inventory behavior and we are going to be much more cautious about building inventories on a store basis to start at the beginning of the year?
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