-Traffic is negative, but improving. Comp transactions -1.6% vs. -2.3% last quarter
-Opened 32 new stores and 14 new PetHotels. On track to build 100-104 net new stores and 45 PetHotels for the year
-Consumables is 50% of revenue. Services is 11.4%
-See weakness in hard goods business (toys and apparel)
-20% of products are private label
-Revenue up 10%, comp-store up 7.1%. Labor costs up 18.7%, occupancy costs up 22.9%
-plan to refranchise 30 company stores
-plan to emphasize new store openings at airports and college campuses. More 40 locations scheduled to be opened by franchisees in 2009
-1% price increase for September
-Out of 518 company stores, 50-60 are cashflow negative
-Selling stores to franchisees at 3-5 times cash flow depending on location and sales
-Mobile up 52% y/yj
-Have agreement with Apple for the iPhone
-$1.9B cap ex for Russia. 60% of traffic is within their own network
-Kazakhstan, Uzbekistan, Ukraine, Vietnam, Cambodia – other markets
-Seeing cost inflation in COGS, freight costs, and agricultural pricing
-Malted barley and hops, seeing significant increase this year
-New glass contract with Anchor Glass takes effect January 2009 after a 10 year contract, so it is obviously higher
-Cost pressure unlike anything they’ve seen in the last 10 years. They don’t see it ending before the end of 2009
-1H revenue up 17.9%, profit up 44.7%. Average monthly net adds of 7.5 million
-net add marketshare of 85% taking total subs to 415 million
-better than expected demand for gigabit ethernet controllers due to increased notebook PC demand
-increased demand for enterprise switches and system controllers from buildout of metro ethernet networks in emerging markets
-Western Digital is the only 10% plus customer
-80% of consumers know the Kenneth Cole brand
-$2M sales per store in their full price retail channel company stores
-testing 3000-3500 square feet design vs. today’s 5000 square feet layout
-Sales down 6.6% with wholesale business weak, consumer direct up 4.2%, comp store sale up 1.3% vs. 2.3% ytd.
-wholesale gross margins are under pressure as department stores are in difficult environment and they are seeing higher cost pressures out of China and other sourcing sites
-11% growth in revenue and 19% in units. Notebooks up 44% and servers up 19% in units.
-47% of revenue is international. BRIC is 9%.
-Gross margin declined 120bps due to strategic pricing actions in Europe
-They are tiny in the European consumer market. They decided to focus more on Asia and U.S. consumer
-1468 convenience stores in 9 mid-west states primarily Iowa, Missouri, and Illnois
-61% of the stores serves towns with less than 5,000 people
-all stores have self-serve gas stations
-14 franchise stores that pay 3% of gross receipts and $0.018 per gallon
-”We underestimated the price performance of our competitor’s most recent GPU, which led us to misposition our fall lineup”
-Reset their prices to reflect the competition
-Seeing weak GPU demand in standalone discrete cards
-Desktop GPU ASPs down 25% q/q. Revenue down 25% y/y and 40% q/q
-Notebook GPU revenue up 43% y/y and 8% q/q
-Until they consume their 65nm inventory, they can’t benefit from the cost reductions to the move to 55nm
-Seeing pretty strong shift from mid-range desktops to entry level PCs and notebooks