Welcome to the third quarter 2007 DSW,
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Good morning,
2012 Nike Free Run 3.0 V2 Light Negro Azul Mujeres Comprar Con Seguridad,
2012 Nike Free Run Tr Fit Naranja Hombres Para Barato Zapatos Para Hombre, with me today in Columbus today are Debbie Ferree our Vice Chairman and Chief Merchandising Officer,
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Earlier today we issued a press release detailing the results of operations for the quarter ended November 3,
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With that I will turn it over to Doug,
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Good morning everyone. Today I will provide detail on some of the significant factors that impacted our financial performance in the third quarter of fiscal 2007 and review our targets for the remainder of the year. As previously released,
Nike Free Run 6.0 Spiderman transpirable Naranja Mujeres Precio Al Por Menor, net sales for the quarter increased 11% to $367 million. Same store sales decreased 3% for the comparable thirteen week period versus an increase of 2.6% last year. Same store sales for the year to date period decreased 0.5% compared to an increase of 3% last year. Our average unit retails increased due mainly to our clean inventory position entering the quarter. However,
Nike Free Run 4.0 Anti-piel Negro Rosa Mujeres Zapatos Corrientes De Venta, like many retailers we experienced a significant decrease of traffic,
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Gross profit rate for the quarter decreased 70 basis point to 29.0%,
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Selling general and administrative costs or SG decreased 250 basis points during the quarter to 19.6% of sales,
2014 Nike Free Run Gimnasio Hombres blancos Con Alta Calidad y Bajo Precio, due in part to the re launch of our loyalty program last year and a reduction of our 2007 bonus accrual. These gains offset a 40 basis point de leverage for the development of our e commerce channel. The net impact of gross margin and SG performance was 190 basis point increase in our operating income rate for the quarter to 9.5% of sales. Overall,
Wmns Nike Free Run 3.0 V5 2014 donne blu In vendita per la vostra selezione, net income for the quarter was $22.4 million compared with net income of $16 million for last year. Diluted earnings per share were $.51 compared with $.36 a year ago,
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To support our long term growth we invested $30 million in capital expenditures during the third quarter,
Nike Free Run 2 2012 Luz azul púrpura Mujeres Zapatos Corrientes De Venta,
Nike Free Run 4.0 V3 Azul Gris Mujeres Proporciona Varios 50% De Descuento, approximately half was for new and remodeled stores with the balance primarily for IT infrastructure and our e commerce business. Our cash and short term investment balance at the end of the quarter was $141 million. Before looking forward to the balance of the year we believe it important to briefly revisit last years results.

The fourth quarter of 2006 benefited from two significant items. The addition of a 53rd week,
Nike Free Run 3.0 V5 Ext Todos Orange Mujeres Disfrute De Más Descuento, and the reduction of the DSW awards accrual. The fourth quarter of 2007 is negatively impacted by the calendar shift of volume that benefited the third quarter. That said based on current trends we are estimating diluted annual earnings per share to be in the range of $1.24 to $1.29 and annual comps of flat to down 1%. The 2007 estimate includes $8.5 million of expense related to the development of e commerce channel which equates to approximately $.13 per share.

While we will not provide earnings guidance for next year at this time,
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2012 Nike Free Run 5.0 V5 Azul Gris Mujeres Ahorra Hasta Un 50% De Descuento, launch our e commerce channel,
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Now I will turn it over to Debbie for her comments on the merchandise results,
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Third quarter comps were below expectations with the miss being driven primarily by weather sensitive businesses,
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Our promotional cadence in Q2 brought us into Q3 with clean inventories and clearance levels at historical lows. Our Boots More traffic driving event in October exceeded our regular price selling expectations,
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Our strategy to support casual sandals with fresh receipts in the appropriate market exceeded both our sales and margin expectations. We are pleased with what we have seen in the boot category in Q4,
Nike Free Run 3.0 V3 2012 mujeres rojas Ahorra Hasta Un 50% De Descuento, the AUR is more than $3.50 higher than last year and we expect to end the season in a clean inventory position. The women casual area had strong comps in comfort and missy flats,
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We have taken steps to address underperforming categories here and expect inventory to be on target for Spring,
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While the total women dress area had negative comps in Q3,
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The highlight in the women accessories area was the strong double digit comp performance in small leather goods and fashion hats,
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Collectively,
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As we head into Spring we feel good about our balanced assortment offering of fashion versus core and our position to maximize opportunity,
Nike Free Run Powerlines Ii Azul Oscuro Hombres Entrega Rápida a Su Puerta. Early indications are that this will be a strong season for dress shoes and color will be important,
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Now,
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Based on our forecast for fiscal 2007 DSW will not achieve full year earnings growth over the prior year,
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Like other retailers our team gathers each week to review the prior week results,
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Nike Free Run 2 Negro Verde Blanco Con Descuento Grande y El Envío Rápido, make adjustments and improve our understanding of the customer. Consistent with prior seasons we don allow the discussion to be dominated by external factors such as weather or retail the environment. While we are very aware of the external factors,
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By holding ourselves accountable for the factors within our control we continue to learn from both our successes and disappointments,
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1 Lower targeted clearance inventory levels did not hurt sales and they improved gross margin during the third quarter. The semi annual sales event helped us to manage to targeted clearance levels. By entering seasons with inventories positioned flat or down faster expected turns and content mixed more toward current fashion than clearance we consistently positioned the business for up side while mitigating down side risk. This can be seen in the third quarter,
2012 Nike Free Run 3.0 Piel Gris Blanco Mujeres Se Venden Con El Precio Bajo,
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Nike Free Run 4.0 2012 Azul Plata Mujeres A La Venta Con Precio De Descuento,
2012 Nike Free Run 3 Gris Púrpura Mujeres Tenemos El Precio Bajo En Línea, we delivered good margins,
Nike Free Run Powerlines Ii Azul Oscuro Hombres Entrega Rápida a Su Puerta, and entered fourth quarter the inventories basically flat to last year. This refinement will continue in the fourth quarter with our Winter sale event. Our outlook incorporates a realistic view of sales trends and the markdowns required to ensure the best possible inventory position entering 2008. Like the beginning of third quarter 2007,
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2 The power of our loyalty program. By every measure our loyalty program continues to strengthen and improve. We are growing the DSW Rewards Program faster than our store growth in rolling 40,
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3 Better new store staging and planning. New real estate development is dominated by the Lifestyle Center format. We are pleased that we have become a tenant of choice for these Lifestyle Centers with our new store design and smaller footprint. Like many other retailers,
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4 Better management of fashion distortions. While we experienced significant double digit comps in areas of fashion distortions such as flats and balkanized product our inventories are planned for even higher sales. While our Spring plan supports fashion distortions as it should,
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5 Customers love the new store design. We will end this year with 35 stores in the new Easton Design format,
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6 Customers are beginning to experience the new service model. This summer we rolled out our new service model and we are beginning to see it deliver with consistency across all stores. This service model is about providing customer engagement that is passionate,
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