CRI
#As it relates to the spending question, there is a little bit of catch-up where some spending will likely move from the third quarter to the fourth quarter.
And on balance, we've been behind in our hiring plans.
It's taken longer to fill some key positions.
And we certainly ask the organization to pull back a bit on hiring activity, given the unevenness of the consumer demand.
So my guess is that hiring picks up a little bit.
We do have a number of technology initiatives as well that are pressing ahead.
And some of that spend falls into the fourth quarter.
We have increased marketing as well.
So that's been a kind of a conscious decision all year long to invest additional amounts in marketing.
Certainly the 53rd week works against from an earnings contribution point of view, the overall effects of foreign currency.
There is a net negative effect on earnings that hits the fourth quarter as well.
I'd say those are the primary reasons why perhaps the earnings guidance isn't higher than it would be otherwise.
As it relates to the international business, our agreements are to sell products in US dollars.
So we don't, per se, have an FX exposure there.
The assumption is, is that we'll be successful opening up 250 of these side-by-side stores over the next five years.
Each of the side-by-sides on a combined basis do some portion of about $2 million a year with good returns.
So that's the basis for the $500 million assumption.
Thank you.
Well here's directionally what we know, is probably with eCommerce in recent years, our US eCommerce business, over 40% of the demand on the US eCommerce business was coming from outside of the United States.
That was an unexpected benefit.
And then in our stores, I don't know about back to 2012, but we've always had a big international guest in our stores, particularly in the tourist locations.
Both brands, it was a common experience to be shopping down in the Orlando or Dolphin Mall stores, Sawgrass Mills that you'd see customers from outside of the country.
Our understanding, a lot of customers from Brazil queued up to check out with suitcases, loading up and bringing a lot of product back to their family.
And so in the stores, our best information is the level of international demand was probably in the stores, some portion of 15%.
It's probably closer to 10%, based on our latest analysis.
In this most recent quarter, third quarter, international demand on our US website went from over 40% closer to 30%.
So it was significant.
It was quite significant.
I would say I'm certain we had felt some impact from it.
I would say it was most significant in the third quarter this year.
And as we looked at the change in exchange rates that we started to see it last year, but it didn't have a, I would say, a material effect on our business.
I would say it did in the third quarter.
And I think time will tell, depending on how the exchange rates move in the balance of the year.
It's hard to predict.
But so far in October, I think we're doing okay.
I would say on average the tourist, tourist use of coupons is less than domestic consumer.
A lot of these folks are on vacation.
Their spend is larger.
They tend to come in and stock up.
Some of them have counter-climates than we do.
And they tend to come in and stock up.
Because they come once a year or twice a year for the product.
But the coupon dilution is less with international tourists.
Thank you <UNK>.
Well thank you all for joining us this morning.
We appreciate your questions and your interest in our business.
We'll update you again with our progress in February.
Good-bye.
