Sperry Top-Sider was up 15 percent and continued its strong performance in both men's and women's products. We expect this momentum to continue in the fourth quarter.
Saucony continues to enjoy success in the specialty run business. New strong technical product, an updated originals line and a separate children's line have been developed for Spring, 2007.
Tommy Hilfiger footwear sales declined significantly in the third quarter reflecting lower sales across all retail channels. The fourth quarter should see a less significant decline than in the first nine months. We have renewed the license for another year through March, 2008.
International sales which reflect the inclusion of Saucony were solid and are expected to continue in the fourth quarter. We believe the International market offers a significant opportunity for growth and are investing in our infrastructure in Europe.
Based on our earnings performance to date, we are reconfirming our full-year earnings guidance of $.82 to $.88, excluding the lower tax rate impact discussed last quarter. This assumes reasonable economic and retail conditions continue."
Included in the fiscal 2006 projected earnings is the annual impact related to the expensing of stock options, which is projected at approximately $.05 per diluted share.
The Stride Rite Corporation
marketing@alchempro.com
