Urban Outfitters Earnings Call Insights: July Analysis and Gross Margin Guidance
Adrienne Tennant – Janney Capital: Dick, so I wanted to ask you about the strength that you saw in July was it across all three brands and what do you think the differentiating factor was relative to the quite negative mall traffic that we saw across the rest of kind of the world of retail. Did it coincide with the catalog drop, new flows if you can give us any more on that that would be wonderful?
Richard A. Hayne – Chairman, President and CEO: Well, the business we saw in July essentially mirrored what we saw for the entire quarter. So, the strength of the brands that you saw and the comps that Frank gave are basically the strength that we saw in July. I don’t think there’s anything that was special about July. I think we had a number of situations where our product offering was I would say much improved over the prior year, and I think that that was the primary driver of the comp sales.
Gross Margin Guidance
Lorraine Hutchinson – Bank of America Merrill Lynch: Just wanted to follow-up on the gross margin guidance for the back half, you’ve obviously got not too much better start than the initial, at least 50 basis point guidance applied. So what are the factors that would cause this to show in the second half?
Frank J. Conforti – CFO: We’re certainly proud of the progress we’ve made during the first half of the year, but we are going to keep our plans consistent for the back half of the year at 50 basis points or better. The rate of improvement for the back half of the year will depend on our inventory management and most importantly our product execution and how accurate that product offering is as we enter into the second season.
A Closer Look: Urban Outfitters Earnings Cheat Sheet>>