Fresh Market Earnings Call Nuggets: Inventories and Guidance Details
Fresh Market, Inc. (NASDAQ:TFM) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
Renato Basanta – Sterne Agee: This is actually (Renato Basanta) on the line for Chuck. First on the comps, 2Q came in at about the midpoint of your prior full year guidance range, and you’ve raised the low end of your comp view by 50 basis points. I understand that you have easier comparisons in the second half but is there anything else that kind of caused you to be more optimistic about full year sales. And I guess related to that can you just talk a little bit about the cadence of same store sales throughout the quarter.
Craig Carlock – President and CEO: For the second quarter I would say the cadence was pretty even nothing remarkable in any of the three months. And for the year I’d say we feel real good about the things that we have visibility into, we’re excited about our holiday plans. We are excited about our promotion schedule, excited about the store managers we’ll have in place as we go through the second half of the year. so we feel real good about those things. So we are cautious a little bit based on the things we see and observe in the macroeconomy.
Renato Basanta – Sterne Agee: Then just a question on inventories, you had a 5.5% increase in 1Q on a per store basis but you know on out math it looks like that number is closer to 8% in 2Q. I know you are investing in health and beauty perhaps grocery expansions and maybe private label and I know you talked about previously running 2% cost inflation. But is there anything incremental there to explain the acceleration from 1Q to 2Q?
Craig Carlock – President and CEO: That’s nothing to be alarmed about. We continue to invest in new products, some of the grocery products we mentioned to raise our inventory levels a little bit, but there is no change in the pattern really.