Karl has gotten great exposure. We’re growing it very well in the United States as well as in Europe. We have opportunities that still haven’t surfaced. Door counts have increased, product has gotten better, and the consumer has gotten more interested in the brand. So we’re seeing great appeal digitally, our own retail, and the distribution that we have for the product. The rest remains pretty much the same. Our brands are operated with amazing teams that Bob and we, relative to the market needs, and I do not have a brand today that is under — that I would classify as underachieving.
Mauricio Serna: Got it. Very helpful, and congratulations on the results.
Morris Goldfarb: Thank you, Mauricio.
Operator: Please standby for our next question. The next question comes from Paul Kearney with Barclays. Your line is open.
Paul Kearney: Hey, good morning. Thanks for taking my question. I think just to ask a little bit differently, relative to 90 days ago, what brands or categories drove revenue upside in the quarter compared to your expectations? And then could you comment on what you’re seeing on channel inventory levels, whether you’re seeing continued conservatism in wholesale ordering? Or are you starting to see them need to replenish their inventory levels? Thanks.
Morris Goldfarb: So what we have really in category callouts, our coat business as we shipped it, responded very well. We shipped — historically, we shipped coats in late June, early July. As soon as coats dropped into the stores, we got immediate reorders, which helped our inventory levels. We’re doing well in the athleisure performance side of our business. The belief early on was that the pendulum was going to swing all the way to the right and our business would suffer. As creativity generally got distributed, all the wonderful product that was created that’s new and appealing, that business grew quite rapidly. Our suit separates business is kind of a sleeper, but it generates amazing profits for the company as well as amazing reorder activity.
And our dress business came back stronger than ever. Those are rather — I guess, I’d make those the callout features. On the footwear and handbag side of the business, we were over-skewed on canvas footwear. We’ve corrected that. We’ve improved on our canvas leisure footwear and that’s working better. And our handbag business is not as good as I would like, but we’ve moved designers and sourcing locations and we see it improving drastically. So — but the quarter itself was not a standout in handbags and footwear. In channel reorders, we’re getting our reorders from our typical customers. We’re department store driven and that’s where our reorders are coming from. And our support is consistent. Our new brands are getting all the support we expected.
We’re dropping products soon. We’re building out shops as they’ve been allocated to us. The real estate is prime real estate that we’ve negotiated for and we’re on our way. You haven’t seen the impact of Donna Karan yet, Nautica, Halston or Champion, and they’re soon to come.
Paul Kearney: Thank you.
Operator: Please standby for our next question. The next question comes from Noah Zatzkin with KeyBanc Capital Markets. Your line is open.
Unidentified Analyst: Hi. Good morning. This is Ashley on for Noah. I guess, just curious on how you see the promotional environment playing out relative to three months ago when you were looking out and maybe how your expectations have shifted. And then if you could provide some additional color on what is driving your holiday expectations, that would be great. Thanks.
