CROX
#Yes, as we kind of look at July and spring/summer that's really a 2016 initiative.
We'll have a little bit of business in Q4 as it relates to the earlier part of that initiative, but then the spring/summer season will extend further than kind of the '15 season.
So it's really a July 2016 timeframe.
Thank you, <UNK>.
Yes, so yes.
We think we're going to see a sustained differentiation between ecommerce and physical store performance based on macro consumer preferences.
Clearly a large part of our ecommerce growth is driven by traffic improvements which was driven by our marketing, which was driven by increasing interest in the brand.
So as we intend to make sustained investments in marketing over many years we believe we can improve traffic to the brands.
And it's a leading indicator of preference for the brand.
So we believe our DTC business needs to play an important strategic role for the brand in terms of allowing us to showcase the broader product range that we have offer.
And it needs to come positively and drive a strong economic contribution as well.
And we look at ecomm as a leading indicator in terms of that's going to be the first thing that gets impacted and we believe that over time as we can impact more and more we'll see some of the broader benefits as well.
So, <UNK>, we took the charge consistent with our policy internally here at Crocs.
And the vast majority of our partners in China are current on their payment plans.
But we are dealing with some isolated instances among our 40 different distributors in the marketplace.
We're working with those accounts diligently.
And we are trying to address the situation and recover completely our receivables from those accounts.
We continue to work with them, and at this time we feel like our bad debt reserve adequately portrays the risk of the organization.
Specifically our bad debt allowance overall is $12.3 million.
When you add the other rebates and other things like that is when you get to the number that you quoted, <UNK>.
Yes, <UNK>.
So we have taken price increases in select markets to our set currency.
We think about the major areas that we've been impacted by currency they are number one Europe, number two Russia, number three Japan, number four Brazil.
We've taken price action in Russia early this early and we'll take some more later this year.
We've got Japan price action late this year and into the following year.
Frankly in Europe, it's extremely difficult.
So instead of mainland Europe, the UK, Germany, and France we're taking select action on select styles, but a broad-based program is really, really hard.
And we've taken price action in Brazil.
Yes, hi, <UNK>.
Thanks.
Yes, I would say we're planning that in a small way for the fourth quarter.
And I don't think we're prepared to share a number.
We'll talk a little bit more in more detail in September, but right now it's a small part of our fourth-quarter plan.
But we think over time it becomes a bigger and bigger part of the overall program.
Yes.
That's correct, <UNK>.
Yes, so obviously, <UNK>, we're going to talk in more detail about this in September.
And we'll have a more robust conversation.
Going back to something we talked about earlier, we view kind of Q2 performance and the run rate on the go forward business of plus 5% to be an indication of solid performance on the core business despite not having an updated product line.
And putting in a new marketing program and platform on an accelerated basis.
We have more time as we look at '16 to leverage our learnings relative to the spring '15 marketing platform.
We have more time to leverage our learnings as it relates to some of the new product introductions we've had over the last six months.
And we feel we've made a lot of progress.
So we start with that kind of 5% Q2 '15.
We're sharing 280 to 290 guidance for Q3, which is plus 4% to 8% on that go-forward business.
And I think that's in that similar kind of range.
And so I would just leave it as, we continue to feel confident in the direction we're heading.
We feel the core business is stabilizing.
We believe there are a number of key indicators as we look at Q2 from revenue of plus 5% on a go forward basis.
Core business, gross margins, DTC, comps of plus 1% and constant concurrency.
And those are all indicators that we're making meaningful progress.
And I would say as you know, we still have the lion's share of the progress that we hope to bring forth that really starts to hit in spring '16.
And again we'll share greater detail in September, but we're excited for the direction we're heading.
<UNK>, what I'd say is yes.
To get to the operating margin we've talked about in the 10% to 12% range we obviously need revenue growth.
And that's a core part of the strategy.
And our expectation based on our product and marketing evolution, and some of the changes we're making in terms of how we run the business and how the business is structured.
That we will be able to drive growth going forward.
You will get more details of that in the end of September, absolutely.
Thanks, <UNK>.
Okay, thank you everyone.
And have a great day.
Thank you.
