MOV
#So basically, in all the ---+ we have very limited distribution for <UNK>ge.
We are launching it very similar to how we launched Bold about four years ago.
And at every retailer that we are operating in, we are obtaining incremental space for <UNK>ge.
It is ---+ the whole collection today is 14 SKUs.
It will grow.
But we are very pleased with the initial results and have gotten great reviews from our retail partners; the press; and, even very early on, also from consumers.
So we are pleased with that.
I think it is still too volatile an environment.
What we have seen is ---+ and we've been talking about this, as you mentioned, for quite a while now ---+ we have been working with our retail partners, and they've been great partners to us.
In some cases, we are where we need to be; other cases, given slow retail that they faced in Q3, they are making other adjustments.
So this is a work in progress.
And obviously Q4 ---+ sig sales for all of us.
This will affect what the number ends up being.
But like we have said before, we are very confident in our innovation pipeline.
Our product offering for this holiday season is really very strong ---+ not just because we are saying it, but our retail partners are also commenting on the strength of our product offering across our portfolio.
And we believe that innovation and beautiful product will attract consumers to purchase.
That is the thesis behind our success, and that is something we are focusing on for great execution in the fourth quarter.
So in Europe it's mostly our licensed brands that are having great performance.
And obviously, it is our bigger brands that are driving it.
Hugo Boss has had spectacular results in Europe, and we are particularly pleased because this is happening in big markets.
So the UK, France, and Germany, as I mentioned, are having spectacular results.
We are also seeing this on Tommy Hilfiger.
And there is different pockets growth for the rest of the brands.
But overall, we are very happy.
We are also very pleased with the results of the Movado brand in the UK, which is one of our focus markets ---+ still very small, but the sellthrough results have really accelerated.
So we are very pleased with that.
Well, we don't operate in a promotional environment, but obviously our retailers do.
It's been quite promotional over the last several holiday seasons.
I think there is possibilities you will see a scaling back of that in the future.
I don't think you'll see that this holiday season.
You will see a very strong newspaper campaign as well as a digital campaign on Movado Motion.
In fact, this weekend there was a full-page ad in the New York Times.
There is a full-page ad today in the New York Post on Movado Museum's forward motion.
And most of that will be in newspaper and digital this fall.
So we can't give you the breakdown.
But what I will tell you is that our like-for-like growth was there for most of our brands, and certainly for the Movado brand, which is our flagship.
But our performance basically in the US ---+ and I will add to <UNK>'s point ---+ is 100% in existing stores.
We really did not open up any new distribution this fall.
You know, might be selected few doors for certain products, but not any large distribution growth.
I think the opportunity now comes really more in newness, where you focus on making sure that you are able to protect your gross margins versus price increases.
There may be some opportunities in Europe down the road, but it's not built into our plans right now.
I just want to build on that.
We are very committed to expanding gross margin; and there are other initiatives, as I mentioned in my prepared remarks, of managing other levers of gross margin in terms of product mix, channel mix.
And we have this thing internally called the magic quadrant, where we are focusing on these categories and these products.
And the entire organization has embraced this, and we are going to continue to see results coming from these initiatives ---+ along with, of course, supply chain improvements to this.
The reality is we are fortunate to have ---+ I will speak to Movado first.
This is a very powerful brand, and many of our retailers benefit by having Movado in their stores.
So I think they understand this very well, and they have been supportive along those lines.
Of course, there are ---+ some of them have thought about connected technology and made initial forays into creating either new sections or awarding more inventory there.
And we will see what the result is.
For the time being, they have been supportive of our connected technology initiatives.
And like I said my prepared remarks, we are very confident that what we are offering is what consumers want for the Movado brand.
So we will see at the end of the quarter how we perform.
But we are very confident, both in the design of the watch; the functionality; and the app is really fabulous.
So we are very confident.
I will take the first part of that, and then I will hand ---+ I will turn the currency part over to <UNK>.
I think we are excited, as <UNK> mentioned, and I mentioned in my prepared remarks, about the innovation pipeline that we have introduced in Q4 for this holiday season.
And both the connected initiatives as well as major product introductions like <UNK>ge.
But, also, new products and innovation across all of our brands ---+ things like a men's assortment in our Coach brands that is performing very well.
So I think there's a ---+ it's really driven by newness and marketing initiatives across our brand portfolio.
And I will turn the currency part over to <UNK>.
Yes, so <UNK>, just a quick one on the currency.
Obviously we don't guide to a constant currency number.
We guide to an as-reported number.
But this year to date, we've had $20 million already on our top line related to currency.
And if you recall, last year during the fourth quarter is really when we had the big change in currency.
So we will continue to have a few months where there is definitely a difference between this year and last, and take it through the end of the year ---+ obviously, 2 1/2 months of three being somewhat different on our constant currency comparison.
But even on an as-reported basis, you could do the math with your models, and you will see that there will be ---+ we are counting on some growth, based on the initiatives that we have talked about the fourth quarter.
You will find that today in major department stores as well, and on their website as well as in major chain jewelers and fine jewelry independents.
So it will be available in-store as well as online.
We are rolling it out.
We are doing a lot of training in-store.
We have special visuals for the product that highlight the technology and highlight the app on the phone that is available for Android and iOS.
And it is a well-tested app, so we are really excited about that.
I will address a few things, and then I will see if anyone else wants to jump in, <UNK>.
So, obviously, we are talking just about fiscal 2016 at this moment.
We haven't gone out with anything further going into next fiscal year and beyond.
We've had the benefit this year in SG&A, where currency has taken our numbers down.
So we have continued to invest this year in people, in marketing, in all the things that we need to do to support the brand.
And this year, we have performance-based compensation in our number, where a year ago we didn't.
So we are very happy with the way that we invest ---+ although, as you know, we are very good here at running things lean and really watching how we spend our money.
So it's a combination of the two.
But we are not giving anything up.
We are definitely supporting what we need to as far as the growth and the health of this business.
The Q will be out later today, <UNK>.
A lot of that detail will be in there.
And if you have any further questions after that, I am sure we can help you.
I would like to thank all of you for participating today on our call.
I wish everybody a fabulous Thanksgiving and a great holiday season.
Thank you again for being with us.
