We are very pleased with our double-digit retail and wholesale sales growth and continuing strong margin improvement in these businesses.

We executed well strategically and financially this year. Our company focus continues to be on generating strong operating cash flow by being in control of the growth of our brands and by fine tuning our global operations.

Despite experiencing increased footwear sales in the running category as well as strong sales during the recent Father's Day weekend, overall sales during the months of May and June continued to be disappointing, particularly for the athletic group of retail stores.

I think now is the time to make even more aggressive statements about how we want to run our business that will pay off for us over the next two or three years.

We haven't done a good job of selling ourselves as a group. Unless we rally ourselves as an industry and fight for the best and the brightest, that will be the biggest challenge in coming decades.

We already have a strong denim business in Asia and Europe, and with direct ownership of the Polo Jeans business in the United States we will continue to invest in design and infrastructure to leverage our global jeans and denim capabilities.

Despite our best efforts and the hard work of the F.W. Woolworth team, the business continued to lose money.

Our strategy to elevate the product and to refine the distribution channels is really paying off.