Ladies and gentlemen, thank you for standing by. Welcome to the Michael Kors Holdings, Ltd. F2Q 2013 Conference Call. (Operator instructions.) As a reminder, this conference is being recorded. And now I’d like to turn the conference over to Ms. Christina Lack, Vice President and Treasurer. Please go ahead, ma’am.

Good morning, and thank you for joining us for our F2Q earnings call. Presenting on today’s call are John Idol, Chairman and Chief Executive Officer who is calling in from Bangkok; and Joe Parsons, Chief Financial Officer and Chief Operating Officer. Before we begin let me remind you that certain statements made on this call may constitute forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ from those that we expect. Those risks and uncertainties are described in today’s press release and in the company’s registration statement on Form F(1) which are available on the company’s website at www.michaelkors.com. Investors should not assume that the statements made during the call will remain operative at a later time, and the company undertakes no obligation to update any information discussed on the call. I will now turn the call over to Michael Kors Chairman and Chief Executive Officer, Mr. John Idol.

Thank you, Christina. Good morning. Welcome to our F2Q 2013 earnings call. With me today is Joe Parsons, Chief Financial and Chief Operating Officer. We’ll begin the discussion with a brief overview of the quarter and share with you an update on our strategic growth plans. Joe will then provide a detailed review of our F2Q financial results. Additionally he will provide our outlook for F3Q 2013 and the full year. We are extremely pleased with our F2Q performance across our retail, wholesale and licensing segments throughout North America, Europe, and Asia. Our results reflect the ongoing momentum of the Michael Kors brand and the successful execution of our key growth strategies. Michel Kors’ creative vision and design leadership provides us the ability to maintain a unique position in the marketplace as we continue to expand our presence as a global luxury lifestyle brand. Our performance was driven by continued growth in comparable store sales, strong performance of our new stores, successful conversion to shop-in-shops in department stores, and advances in our international expansion strategy as we continued to build brand awareness. We have a talented management team, strong infrastructure and a healthy balance sheet that will enable us to successfully execute our strategic growth initiatives. During the quarter we continued to advance on our six key growth initiatives. First, in North America our 45% comparable store sales increase represents the 26th quarter of consecutive growth in this region. Second, our retail expansion efforts continued in North America with ten new stores opening in the quarter. Third, we continued to convert North American wholesale department store doors into branded shop-in-shops. Fourth, our presence in Europe expanded with additional retail and wholesale door openings. Fifth, we continued to develop our business in Japan; and sixth, we continue to build a foundation…

Thank you, John, good morning. I will begin with a review of our F2Q 2013 financial results followed by our outlook for F3Q and full year. For F2Q, total revenue grew 74% to $532.9 million as compared to $305.5 million in F2Q last year with strong growth in each of our retail, wholesale, and licensing segments. Retail net sales increased 82% to $242.3 million in the quarter as compared to $133.4 million in F2Q last year, driven by a comp store increase of 45.1% and the opening of 66 stores since F2Q last year. The comp store performance was driven primarily by the strength of the accessories line. Wholesale net sales grew 75% to $270.8 million for F2Q compared to $154.5 million in the same period last year. This growth was again primarily the result of increased sales of our accessories business driven by our unique design and merchandise assortment as we enhance our department and specialty store presence and continue the conversion of department store doors into shop-in-shops as well as expand our European operations. In our licensing segment, revenue grew 13% to $19.9 million for the quarter as compared to $17.6 million last year, primarily driven by the continued strength in watches. Gross profit increased 80% to $315.9 million as compared to $175.1 million in last year’s F2Q. Gross margin expanded 200 basis points to 59.3% driven primarily by lower in-store markdowns, discounts and allowances, as well as a more favorable product mix shift to higher-margin merchandise. Total operating expenses grew 36% to $158.0 million in the quarter. Total operating expenses for F2Q 2012 were $115.8 million and included a $10.7 million charge related to employee share option redemption associated with our private placement. As a percentage of total revenue, total operating expenses decreased to 29.6% from 34.4%…

Thank you, Joe. We are extremely pleased with our current growth trajectory and the significant opportunities that lie ahead for the company. We remain well positioned to continue to build our global luxury lifestyle brand and we have a tremendous opportunity for growth worldwide. Thank you for participating in this call. We will now open the call to questions.

Thank you. (Operator instructions.) We’ll take our first question from Brian Tunick at JP Morgan. Brian Tunick – JP Morgan: Thanks, good morning guys and congrats on a great quarter. I guess a question on your comments regarding the storm: I know a lot of people are talking about it here but I mean you guys were already a month into the quarter. So I’m just wondering maybe on the first part if you could talk about maybe how your business was trending in the month before the storm and then maybe talk about what you think are the biggest opportunities either in categories or maybe inventory positioning this holiday versus last year. Thanks very much.

Sure, Brian. The first question which I think is twofold: first, how are we trending? And our business was exactly on track for (inaudible) reports in F2Q. So we were really firing on all cylinders and that’s globally so we did not see any change in the business. Obviously I’ll address the second piece, which is we have a number of highly productive stores that are being affected obviously in the Long Island area, in the New Jersey area in particular that we don’t know when those stores are going to return to normal. There’s gas lines we’re aware of, and I think there’s also a psychological effect on the people in the immediate New York metro area where their homes have been affected. So I think until people recover from some of this startling situation we want to be cautious about what’s going to happen in that region, and again, I can’t just sit here… We just don’t know when that will return and what the effect for the overall business is. But beyond that region business is very strong everywhere in the US, Canada, Europe, and Japan so we’re pleased with kind of our setup for the holiday season. In terms of categories, we’re very excited about a few different things. First off we want to continue to emphasize that our watch business is very strong for us, and you know, it’s a significant part of our retail business in our own retail stores. So that trend continues to be performing well for us and that’s usually a very strong category for us during the holiday season. Secondly small leather goods, as you know we’ve been putting greater emphasis on that category and building that out to a greater percentage of our overall sales inside of our stores; and we’re reaching penetration levels that [weren’t] anticipated. I think if you go into our stores you’ll see we’re putting more emphasis on the category – everything from our feature tables when you walk into the stores to actually showing the SLGs in their own contained areas but also cross-merchandising them on the handbag wall where we’re getting excellent multiple sales with our strong service and our upselling program to the consumer. And then lastly I would say it’s really the item business. We’ve got a very, very strong penetration with totes in our stores. That’s become really a go-to item for young girls which has also added to our UPTs in our stores because she’s not only buying handbag from us but many times she’s buying a handbag and a tote which really has boded well for us. So we’re in a great inventory position in our key items. We think we’ve got the right merchandise in terms of the trends which I think we’ve been very good at not only being on trend but also leading trend. So we see a very bright Christmas ahead of us.

Thank you. We’ll go next to Kimberly Greenberger of Morgan Stanley. Kimberly Greenberger – Morgan Stanley: Great, thanks. Good morning and congratulations on a great quarter. John, I’m wondering if you can talk to us about some of the comp drivers in the quarter. You had indicated previously that incoming traffic into the stores has been the number one comp driver. Did that hold up? And then if you could just share with us the percentage of sales that you generate in the hurricane-impacted areas? That would be really helpful. And lastly, in terms of the expectation that markdown rates will begin to normalize, are you seeing any evidence here so far this quarter that markdown rates are in fact starting to normalize; or is that just an expectation of what might happen in the future? Thanks so much.

Sure. Let me go with the last question first which is the markdown rates because that’s the easiest one. We have not seen that happen yet. We are anticipating that we keep saying on each call that at a point it’s going to happen. We don’t know when that point is but we have not seen that happen so far in the first [month of selling in this quarter]. So but again, we’re up against big comps from last year at this period of time, we have big inventory positions so we have to be prudent in our thought process. Again, if the consumer responds in the way that she has been to date then obviously the results will be potentially improved from what we’ve given guidance on – and that’s really what’s happened in the last few quarters, is we’ve continued to do better than what we had internally planned for. And you now, that’s how we’ve operated our business since we’ve been public. So that’s the first question. I’ll go to the drivers. Traffic has maintained its same pace for us. We have not seen any change in traffic both domestically and internationally so we’re really pleased with that, so that’s really been the number one continuing to… Traffic doesn’t pace at the same level as comp does just so you’re aware, so you really take the traffic increase that we had which has run kind of in the mid-30’s for us, which is really an extraordinary number in terms of trafficking; and then you put that on to conversion where our conversion rates are up very nicely in our stores. And then the other thing that’s happened to us is our UPTs are up, so our average transaction size is increasing slightly. It’s not large but it’s a nice number. So all of a sudden you put those three together and that’s really how you get to the comp, but the main driver is continuing to be traffic and so we haven’t seen any change in that. And lastly, the hurricane-effected stores – it’s really too early to tell that, because if you would have taken the 55 stores that were initially closed you would have obviously been highly concerned. But it’s come down considerably. The markets again as you know are New York and New Jersey. New York City seems to be rebounding very quickly, and by the way, these concerns that we have are not only for our own freestanding stores – you have to remember our department store partners operate in these regions as well. So we’ve seen an effect in those department stores that are located in again the New Jersey and Long Island area in particular. So we really can’t ascertain what the percentage of it is, but what I’m really pleased to report is that the New York City business is excellent. So again, that’s a huge percentage of this operating area. Kimberly Greenberger – Morgan Stanley: Great, thanks so much.

Thank you. We’ll go next to Randy Konik with Jefferies. Randy Konik – Jefferies & Co.: Yeah, thanks a lot, just a couple questions. First, you gave the number of the accessories percent of total – I think it was 79% and last quarter it was 79% but it rose on a year-over-year basis. Can you just give us just your thoughts on where do we see that number trending over the next few years? And then my next question is regarding your licensing piece of the revenues, we had Fossil report a week or two ago and talk about some push out in orders and so forth, so can you give us your additional color on how you see the watch category from your standpoint – not just for the brand but in general? And then lastly, can you just give us an update on how you’re thinking about the long-term outlet strategy from a channel distribution standpoint? Thanks, I appreciate it.

Again, this is really a little bit more of our dream than the accurate percentage, but we would like the accessories business to represent 85% of our total sales on a going forward basis. That will just naturally happen as we’ve talked about in the past as we open more of our own lifestyle stores where that percentage is more or less there today, that the overall company’s sales will trend towards that area. And of course you know, that’s something that we like because it’s higher margin for the company. Secondly, we think that retail, even though today retail and wholesale are very similar in size, retail long term will become in our estimation 75% of the business. And again, our wholesale business has just tracked much faster than we had anticipated, A.) because of the shop-in-shop installations, and B.) because our comp store performance as we indicated on the call is running at or in many cases higher than what we were reporting in our own freestanding stores. So those two factors are keeping the wholesale business slightly larger than we had anticipated at this point in time. The second question regarding… Let me first start by saying we have not seen any… I saw one analyst wrote something about the potential of orders being pushed back. We have not seen that at all. Again, our sell throughs are excellent. We typically have the opposite problem where our partners are asking us for more inventory more quickly, so we don’t see that going on and I have not seen that for our part of the business at Fossil either. Again, our watch sales continue to be the number one performing brand in almost every department store in the United States. We’re reaching similar penetrations in Europe where we’re…

Thank you. We’ll go next to Erinn Murphy with Piper Jaffray. Erinn Murphy – Piper Jaffray: Great, thank you, and let me add my congratulations on a fantastic quarter. John, I was just hoping maybe you could speak a little bit more on the role of social media and the role that it’s played in really driving that customer awareness and the acquisition process. How quickly do you see the return on investments that you make in this channel? And then along that same vein I was just curious if you can talk about the recent hire on your Board of Directors, Judy Gibbons. It just seems that that’s a very complementary fit given her background in ecommerce and digital media. Maybe talk about the process there for longer-term growth in ecommerce both domestically and abroad. Thank you very much.

Sure. So social media, as you’re aware, is obviously a very hot button in marketing today. We are right at about, I think we told you this during the IPO, we’ve really frozen our print budget domestically for sure; and internationally the print budget is growing but we really see that as being 50% or less of our marketing dollars and our communication. There’s obviously a very big push on the social media side and we think we are doing a very good job at that. We have over approximately 1 million people following us on Twitter today and I think we are either #2 or #3 on Twitter in terms of a designer followed, which is really amazing that we look back almost two years ago and I think we could have been at zero – I don’t remember the exact number but it was pretty low. We’re a little over 2 million fans on Facebook. We anticipate being able to get that number to well over 5 million by this time next year, and the good news is that we know that’s building brand awareness for us both domestically and internationally. In particular, as you know, Facebook – I think about 40% of the people that are on Facebook are outside the United States, 40% to 50%. So we like that because it helps drive our international brand awareness. And what we’re working on very carefully with all this, because social media is wonderful but you have to figure out how to get that to convert to actual sales both in your stores and online. We’re working very closely with Facebook; I think they’ve announced it a few different times publicly, that we are one of their closest [beta] partners on a number of different projects. And so…

Thank you. We’ll go next to Paul Lejuez with Nomura. Paul Lejuez – Nomura Holdings: Hey, thanks guys. Can you talk about the comp performance in malls versus outlets, and can you just remind us how many outlet stores you have today, how many openings this year will be in that channel? And also if you can maybe talk about which price strata of handbags are growing the fastest, and then last, John, anything you’re not happy with in the business today? Thanks.

The first question was about comp for outlet versus full-price, and just (inaudible), we don’t… Again, the good news is our full price stores are performing as we said before very similar to our outlet stores, and sales per foot is very, very similar. And I think you all can probably calculate, we don’t put it out there but you can get a pretty good idea of the sales productivities that we’re running at on a global basis. And we’re very proud of the fact that we are running very close to some of the most prestigious luxury companies in the world in terms of productivity. So we think that bodes well for us, and our [full price] store sales growth for us is the engine for the company. To remind everyone, it’s not going to continue at these kinds of paces. We just [haven’t done] guidance for that or for us to plan internally for us to be at that basis. In terms of the number of outlet stores that we have today, Joe, do you want to just read that number off?

Yeah, worldwide we have 89 outlets today. Paul Lejuez – Nomura Holdings: How about in the US, Joe?

In the US we have 67.

Okay. And then the price strategy – for us in the handbag category, I would say it’s the $300 to $350 [strata] that is really driving the largest amount of sales for the company. We do have some tote businesses that are in that $250 range, $225 range which has been quite strong for the company as well, but predominantly for handbags we seem to do our greatest volumes in that price point. Our customer I think really appreciates the quality that we put into our product. We don’t have as high gross margins as some of our other competitors and we understand. We believe that quality is first and we believe that there’s a lot of quality in our product – the leathers we use, the hardware that we use – and we’re always wanting to design the best product first. And we think that the customer appreciates that. I think you see that same thing whether it’s in our watches or it’s in our small leather goods or footwear, or women’s ready-to-wear. Interestingly enough, in women’s ready-to-wear we’re putting more quality into the product. We’re trying to take the brand really up to an even higher level, and what’s interesting is the customer is responding. Where we thought before there were certain price limitations again, you can’t be completely (inaudible) to that but the customer is really responding to quality and obviously design first and foremost in that. Did I miss any of your questions? Paul Lejuez – Nomura Holdings: The last one, John, was just if there’s anything in the business that you’re not happy with right now.

I’ve said to you guys before I think we are one of the best companies in the industry in terms of design. I think Michael’s leadership is extraordinary, his vision and our Design Team’s. I think our selling in our stores is best-in-class in the industry. I think our store design is best-in-class. What I’m not happy with is our ecommerce business. We are [not] where we should be. We really need to be on a global platform given the size, the scale of our company worldwide and what this represents as an opportunity. So we’re behind on that category. We’re making the right moves, obviously hiring Judy – we’re going to make our announcement later this week on a very senior individual who is joining the company to run ecommerce. And then we’ll be announcing probably sometime in the spring season about when ecommerce will come back in-house and along with that we’ll have a global schedule that we’ll be discussing. So many of our competitors are well ahead of us on that and I believe the opportunity is much greater than what I had originally estimated. We’re seeing certain retailers today that we do business with, our partners, who are running between 10% and 20% of their sales online, both their own company and then of course Michael Kors sales. So you take a look at those numbers and then our retail numbers and it really warrants a very significant potential long-term opportunity for the company. Paul Lejuez – Nomura Holdings: Great, thanks a lot. Good luck.

Thank you. We’ll go next to Omar Saad with ISI Group. Omar Saad – ISI Group: Thanks, good morning, John. I’m hoping you could maybe discuss a little bit what you’re seeing out there in the competitive landscape. The obvious success that you guys are having, is that having an impact? Are you seeing a response from some of the other companies out there or are you of the view that there’s kind of plenty of room for everybody given the strength of the category, not just in North America but globally? I’d love your thoughts, thanks.

Sure. Well, I think the first piece of news again, and I know you guys clearly follow a couple of our big competitors who are domestic here – and obviously we don’t view those as being our only competitors; there’s obviously international luxury competitors who are for us equally important. The accessories business is growing. Whether it’s in the US retail channel, whether it’s in the US department store channel, whether it’s in the European channels – it continues to be one of the best performing categories for luxury companies and for department stores or luxury department stores. So you can see the different data that comes out about the growth of luxury and we believe that data is pointing to the fact that actually the accessories category is growing faster than other categories inside of luxury. So we think there’s plenty of room for us to grow. We’ve seen certain people do certain things promotionally and we’ve opted not to participate in that, and we think that sends the wrong message to our customer. We’ve said to you before that we are building this on a luxury platform and to start doing those kinds of things really I think sends the wrong message to the consumer about your brand. So we see this category as still maintaining and growing, and in particular we’re so excited about what’s happening in Europe. You can see the numbers, they’re just outstanding. And Michael Kors, I think by this time next year we anticipate being the number one accessible luxury handbag company in Europe. And to really get there from four years ago is quite an extraordinary feat. And we’re expecting similar things from out watch business where today, we believe Michael Kors will be the number one selling designer watch brand in the world. As you know, Fossil’s reported its shipments but we think we’re going to potentially do almost $1 billion of retail in watches on a global basis. So that’s an incredible number and that leads the way for us in other marketplaces for our other categories of business to develop.

Thank you. We’ll go next to Joan Payson with Barclays. Joan Payson – Barclays : Hi, good morning and congratulations. I guess first off to talk a little more about the European business. As you’ve been building that out, which markets are you most highly concentrated in right now and which markets are you more focused on developing?

The good news for us so far, let me just start by saying that the business in Europe has been balanced in terms of the consumer response. So a lot of times American companies go to Europe and they have a good response in the UK and then they don’t have a very good response in Germany or in other markets. So we’ve really seen the response, whether it be Spain believe it or not, even with the very difficult economy there we’re running strong comp store sales, not only in our own stores but we have a number of concessions in [El Corte Engles]. And the area where we are the least developed in Europe is Italy where we only have one store that’s actually a license of a collection store. So that’s an area where we see a big opportunity for us and we can grow. And again, I know many times people are concerned about the environment in some of these marketplaces. The market share is still there to be taken and we think we’re positioned really in the right way for that. So the net conclusion is we’re feeling very good about the brand all across the marketplace and there’s plenty of opportunity for us to grow.

Thank you. We’ll go next to Blair Pearson with Robert W Baird. Blair Pearson – Robert W Baird: Hi, thank you for taking my questions; a couple of quick ones. First on the shop-in-shops, you mentioned 1000 potential for accessories. Have you started to plan or quantify the potential for footwear and apparel shops, and can you update us on how many of those you have today?

Sure. Joe, you have the number there, correct? We really haven’t gone through and talked specifically about how many apparel and footwear shops we have, but let me just say to you that apparel will ultimately have the potential to be in the same amount of shops that we have with handbags. So ultimately we think we can have 1000 shops with accessories; we think we can ultimately have 1000 shops with women’s ready-to-wear. I think I mentioned to you during the recent secondary that our women’s ready-to-wear business has gotten very healthy. We’re one of the best performing women’s ready-to-wear brands in the department stores, and again, that’s the predominant piece of our ready-to-wear business is in the department store category; and then of course specialty stores inside of Europe. The footwear shop-in-shop situation, we only have a handful – I think it’s ten – but you’re probably aware we opened up a new footwear shop at Macy’s in Harold Square and the results are extraordinary. And so we really didn’t know what that would mean for us but we’re certainly having some very serious discussions with a number of department store partners, both domestically and internationally given the success of what we’ve seen happen there about the potential for those shops. So I think we can report maybe in the next six months a little bit more of what the development is and the potential of those as opportunities for us. Blair Pearson – Robert W Baird: Okay, thank you. And then just lastly on fragrance, I don’t think you’ve talked about that a lot but you had a competitor recently discussing a push into that area. Do you have any updated thoughts on the opportunity there or what your plans are?

Yeah, the question was asked before – I apologize, when the question was asked what we’re disappointed about I should have added fragrance to that. We do not have a developed fragrance business. We have a great partner which is Estee Lauder but we have a very underdeveloped fragrance business. We have some pretty significant plans with Estee Lauder to make a very major push into that category next fall season. We’ll be making some public announcements about that on the next conference call, but you can be assured that given the size of our company that’s a very big potential opportunity for us – and of course we have not factored that growth into any of our projections. As we’ve told you in the past we view that as if it happens it’s going to be excellent upside.

Thank you. We’ll go next to Oliver Chen with Citi. Oliver Chen – Citi : Hi guys, thanks a lot. Regarding the comp and the evolution of your guidance, it sounds like the traffic was up mid-30’s and the conversion is up and UPT is up. So what’s the difference in terms of your outlook for the mid-20’s versus the comp that you just posted of 45.1? Secondly, can you speak to your thoughts on the watch mix evolution as a percentage of total? Do you expect that to hold year-over-year similarly? And lastly, if you can give us from a bigger picture perspective on what’s happening – are you getting new customers to the table with watches or is she or he buying multiples?

Sure, okay, let me start on the comp question. When you’re coming off of a 45% comp and 40% comps, whatever – high 30%’s comps – we’ve told you before we just can’t plan a business that way. We’re able to react because of certain relationships we have with our manufacturers or certain partners who are supporting us in certain businesses, so we have the capability of over performing to the comp that we are giving guidance on. But that is our internal plan, and as we said earlier, it’s not prudent to all of a sudden plan that we’re going to continue to run 45% comps. And then the only other issue is that we’re going up against some very large comps as we start heading into especially F3Q. The numbers are just bigger in terms of raw dollars and not just percentage. So really those are the two driving factors. We want to plan prudently internally, and by the way, we’re very proud to plan at mid-20%’s comps. We think that’s still best-in-class. I don’t think there’s many even luxury retailers who are forecasting guidance at that level. And secondly, we think that we’re going up against just bigger dollars, so that in and of itself is an issue that we need to be mindful of. The watch mix will probably decline slightly as a percent to our total in the stores, and that’s really mainly because the handbag and small leather goods is growing at a faster pace than the watches are. We’ve told you the SLGs, small leather goods at our stores is growing in triple digits so that’s just in and of itself going to take up percentage. Our handbag business is really getting stronger this quarter and you can see that through our department…

Thank you. Our last question today will come from Corinna Freedman with Wedbush Securities. Corinna Freedman – Wedbush Securities: Thanks for taking my call. A quick question on the retail store openings for the second half: can you tell us how that will flow for F3Q and F4Q, and if you can give us an update on any unique to holiday marketing that you’re planning and an update on men’s and other categories? Thanks.

Okay. First, we don’t typically guide with the store openings by quarter, and the reason for that is because many times construction projects move or quite frankly we might accelerate a project. So both in the shop-in-shops and the store breakdowns we don’t guide by quarter, so that’s the first answer I’m going to go to men’s second. It’s very interesting – we have a men’s sportswear business and a men’s tailored clothing business. And the men’s business for us in the United States between licensed products and our own company-owned is over $100 million. So we have an acceptance to men’s sportswear and tailored clothing, and shirts and ties. We are rolling that out in Europe as we speak – very slowly, very quietly, not with a major push but we’re finding great reception to our men’s sportswear. So what happened is we started to introduce the men’s leather products, so and you can see that down at Macy’s Harold Square and at some of our flagship stores in America and internationally. And initial feedback on that product has been very good. So again, we don’t view this as any major growth opportunity today but we do think that in the future you can definitely look at luxury goods companies and their percentage of men’s products, and you can without question count on the fact that over the next few years that will be a business that we will enter and be deep with. Lastly in terms of holiday marketing, again, we are very driven first and foremost by paid search in terms of our website – excellent results from that. Secondly is our email blasts to our customer which have strong returns both on our website but even more importantly to our own freestanding stores. And then lastly we have a very strong catalog business. Many of our competitors have either exited that business or never really went into it in a strong way; we literally send millions of catalogs a year and we think that’s been a key push for our consumer. We can see what it does in terms of our in-store performance when we drop catalogs – we get a very strong spike. We also get a very strong spike to our website, and we also think that it really delivers the message that Michael Kors is the fashion resource for many Americans and Europeans and Japanese. So people can keep that catalog at home or they actually come into the store with it, shopping with product, and that’s been a strong driver for us and we’re going to use that again very successfully during the holiday season.

And now at this time I’d like to turn the call back over to John for any additional or closing remarks.

I’d like to thank you all for being with us on this call today. Again, I want to reiterate Michael Kors is one of the very unique luxury lifestyle brands that has the ability to have significant growth in the future, and we believe we’re doing a very strong job of executing both in North America and now in Europe, and the beginnings of growth in Japan. So we look forward to sharing additional information with you on our future conference calls. Thank you very much.

Again, ladies and gentlemen, thank you for your participation. This will conclude today’s conference call.