Zumiez Earnings Call Insights: Blue Tomato Analysis and Promotional Environment
Blue Tomato Analysis
Sharon Zackfia – William Blair: I guess I actually wanted to ask more than one question. I just wanted a clarification on Blue Tomato and how the revenues trended in this quarter? I think it’s – well you lapped the acquisition at the beginning of July so just any clarity there? And then secondarily I guess in terms of the trend you’re seeing it sounds like you had a good August and you want to be conservative on the thought process going forward. I mean, have you seen any kind of weighing in in your business, anything that particularly gives you concern relative to Zumiez’s business rather than the overall noise we’re hearing throughout apparel and mall traffic?
Richard M. Brooks – CEO: I’ll let Chris handle the Blue Tomato question, Sharon and we hear you fine by the way. So as we look at the guidance that we gave – for the third quarter, again I want to reiterate that we feel pretty good about 3% comp relative to the sequential improvement over July. As Chris said, when you see it increase in transactions, dollars per transit – unit per transit AUR is all rising, that makes us feel pretty good generally Sharon. Now that being said if we looked at the weekly cadence throughout the four weeks of August, we would tend to see that the beginning of the month was stronger than the end of the month. I think furthermore, that as we think about what’s going on generally in the consumer world today with where people are spending their money that no new fashion trends out there really in terms of major drivers of the business. I think from our perspective we – as we said in comments can envision that consumer spending might revert back to the pre-back-to-school trend line. I think that’s what’s reflected in our forward guidance relative to the zero – real flat to 2% comp number for the full quarter. Chris you want to talk about Blue Tomato and any color there?
Christopher C. Work – CFO: Yes, absolutely. As we said in the prepared remarks Blue Tomato sales in the quarter were about right around $6 million and as you recall money at their business is heavier weighted towards the winter season and late Q3 for us and Q4. From an overall perspective their comp from July forward is in the comp guidance that we gave. But what I can tell you is that in a pretty tough European environment they’ve performed very well and comped positively. So we are still encouraged by where they are at, but it is a tough environment over there. So they are comping positively ahead of the overall chain and are included in our numbers we provided today.