Matthew McCauley: The total marketing dollars last year were around 1.7% of total sales, this year we’re a little over 2%. A nice increase in the investment – the vast majority of that is in direct marketing. For 2008, we plan to methodically grow that as we continue to see the ROIs on it.
Brian Tunick (J.P Morgan): How do you view the buyback program opportunity versus how much cash you want to sit with?
Blair W. Lambert: We certainly always look at the cash position, always looking for the best utilization of cash. Obviously, right now we don’t have any new buybacks authorized. We will continue to talk with the board about that on a regular basis. In this environment, everybody likes to have a little bit of cash and we’ve also got a few assets that are unencumbered that are available to us.
Brian Tunick (J.P Morgan): On the 100 basis points of IMU opportunity for this year, we’re starting to hear about cost pressures potentially in the back half. Is all your business bought already and manufactured these contracts?
Blair W. Lambert: We’ve bought the vast majority of 2008. We still have one development period to wrap up the year, but it is something that we are paying an attention to seeing a lot of pressure across the market, but a lot of it is impacting China and we’re trying very hard to diversify and have a lot of other countries that we’ve entered into over the last few years that have helped us out. |