Would bonuses be up in 2007 or that doesn’t change on a percentage basis?
The company would expect to have normalized bonuses both this year as well as 2007.
Do you have different ads in different regions of the country?
The company has the same promotion going on around the country.
Can you comment on whether or not the gift giving category as a percentage of merchandise represented in the store is the same to last year or is it higher?
It’s going to be similar.
The men’s sector during November seemed more competitive than in the prior month. Do you think the promotional sector that you compete in was more promotional or about the same?
It was about the same.
Was the women’s category down in November?
It was down mid-singles. The company thinks it was due to the lack of experience in that category.
Could you give the geographic breakout?
The South was up a single-digit. The Midwest was down single-digits. The West was up mid single-digits and Northeast was right behind that. The West and the Northeast were the strongest.
Where do you expect inventories and advertising expense to be at the end of the fourth quarter?
Aeropostale would expect to end fourth quarter up per square foot mid to high single-digits as it anticipates the opportunities of the spring season. Advertising will be up about 20 plus basis points in the fourth quarter relative to last year’s percentage of sales.
Will there be any one-time reversal that will happen in the fourth quarter in SG&A like it did in this last quarter?
The answer is negative. SG&A should be up as a percent of sales, but there are no one-time items that would occur.
Do you still anticipate meeting the single-digit comparable store sales to leverage expenses?
It depends upon the additional opportunities that arise during the fourth quarter. Generally mid single-digits are expected.
Could you confirm that the 50 off promotion has stopped at this point throughout the country?
It is stopped throughout the country. |