Dan Geiman (McAdams Wright Ragen): Are there any specific factors that drove that growth that you saw from month to month during the quarter?
Diane Irvine: Our sense is when we got into January that there was kind of a post-Christmas pull-back on the part of consumers. January was our weakest month but we had a marginal improvement as we went through the quarters but I do not think it was enough to point to anything specific. We just keep doing the right things in terms of moving the business and converting customers.
Stephen Ju (RBC Capital Markets): Are international gross margins similar to that of the U.S. across all segments?
Diane Irvine: In terms of the way we are pricing, we have similar gross margin structures and depending on the website you are purchasing from, there is a different currency there. We have marketing investment there, not looking at gross margin but in costs overall because those are small businesses, there is a relatively higher spend in marketing, just because those businesses are small. But if you look at the U.K. business, I think we are happy in terms of what we are seeing on a contribution margin basis. The other businesses are operating for those countries where we are shipping out of the U.S., it is operating off of the same margin structure. |