Consumer Decision Making

The economic environment continues to be challenging for the consumer and our retail partners. In this environment we are focused on managing our business as diligently and prudently as we can, while continuing to build on the strengths of the unique brand (bare esscentuals).  Furthermore, despite increased competitive activity at retail particularly for lower-priced mass-market products, bare esscentuals core foundation business continues to be strong with unit volumes growing faster than dollar sales as we see customers shifting from kits to open stock products.Bare esscentuals believe that they are operating at inventory levels consistent with their partners goals and are reflecting the current economic environment. That said, we continue to work closely with our partners to ensure they have appropriate inventory to maximize sales.