Mark Parker: The run rate is flattening out at about the rate that we have been on over the last year and half which is in the 500 to 600 door range per year. We feel confident around that number. It has not shown any signs of slowing down as we start to get into the tier-2 cities. Most of our time and efforts have been spent around the big three over the first couple of years and we are in some of the tier-2 cities, but now we have started to expand there and I would see that level maintaining itself through the Olympics.
Brad Cragen (Goldman Sachs): Could you comment on the One Star launch with Target?
Mark Parker: We are working with Targets, which is an account retail partner that we highly value. I am happy with the relationship with Target. One Star is essentially a sub-brand of Converse as opposed to the Converse brand proper. There is an exclusive relationship with the One Star brand in apparel and in footwear with Target in the United States. We are bullish on the relationship, feel like we are ready to come out at the gates. There are two phases the first part of January and then fully in the first part of February. The product line is strong in terms of the design and also the value for the price. Target runs a strong and disciplined operation and has some marketing strength as well. Target is going to put some energy behind the One Star brand and that launch soon in coming weeks and then we expect that to continue to build throughout the year and beyond. |