Sharon John: That’s certainly can’t speak to the other companies that were mentioned, but you just defined us as a children’s toy company, which I think maybe an insight to a different way to think about it. We have worked very hard to extend beyond the core kids where we started as a company, 25 years ago. 40% of our sales are now to teens and adults. We’re an enthusiast brand, a collector brand and gifting brand. And we’ve also as we mentioned in the last response, have extended beyond what you might consider a toy. First of all, the teddy bear and our furry friends as we like to call them, serve different purposes for different occasions. So, yes, its most fundamental definition, you would call it a toy, but it serves different purposes.
Is it a guess? Is it a business? Is it that what are the purposes that it serves? And the second piece is that, we have expanded into entirely new categories, whether that’s through our own initiatives as we mentioned with the Pajama business or it’s with the extension through partnership, with Pet Toys or it’s the entertainment side that’s helping to drive the business. So we believe that, the diversification of our business is very strong. The other piece is tired discussion that we served up in the comments, which is about our retail. We have a vertical retail machine that drives profitability, that drives engagement that we now have successfully digitally integrated with omnichannel capability, using those 400 some odd locations to be many warehouses that helps us to elevate and improve that last mile of distribution and fulfillment in a really efficient manner, that ability to directly connect with the consumer in a way that wholesale companies often can’t, is an important part.
That’s why I call the stores our killer app. We have a really integrated approach now that allows us to build that out. And we believe that, we are in a position for further expansion not only with the fact that, we have mentioned multiple times and multiple calls that there is really no data that implies that we are over stored in North America and certainly not in other countries, particularly now that, we have created this more integrated approach to retail but that we have opportunity to then raise the water level with all of these other initiatives that engages with our consumers across multiple touch points, whether that’s retail, to gifting, to the pajamas, to watching movie on Netflix, to posting something online that goes viral on their own, that UGC, user generated content is an important piece of our brand, because we are so emotionally connected and again woven into the fabric of their lives.
And we have seen significant increases in teens being in our stores. These are not just; I’m going to go online and buy the next Pokemon. This is really involved engagement at a different type of level. We are an iconic brand and you can see it showing up in our business when we — the kinds of impressions that we get on mediadrop, the engagements that we have, the lines that form outside of our stores. So I think although you may call them our peers in some way, we are a different business model. And I think that’s really different.
