Good day, ladies and gentlemen, and welcome to the Tandy Leather Factory Third Quarter 2017 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Shannon Greene, Chief Executive Officer. Ma'am, you may begin.

Thank you. Good morning, and welcome to Tandy Leather Factory's Third Quarter 2017 Earnings Conference Call. We will be discussing our third quarter 2017 results as well as providing an update on our key operating priorities and our 2017 guidance. I'm Shannon Greene, Chief Executive Officer, and I'm joined today by Tina Castillo, Chief Financial Officer; and Mark Angus, President. Before we get started, our earnings release and related SEC filings are available on our Investor Relations website -- section of our website and a replay of this webcast will be available later today. Also, I need to remind everyone that there may be forward-looking statements on the call today. Statements would include words like expect, believe, anticipate, plan, intend, target or words with similar meaning and are based on our beliefs and expectations subject to certain risks and uncertainties that may cause actual results to differ materially from our forward-looking statements about those results. These risks are detailed in our various filings with the SEC such as our most recent Form 10-K and 10-Q as well as in news releases and other communications. We do not undertake to update or revise any forward-looking statements which speak only as of the time they are made. As you saw in our earnings release, our results for the third quarter were not what we had hoped. At our last conference call in early August, we knew we were behind on the top line, which we had expected to start turning around in the third quarter with higher contributions from our new stores and at least a flat-to-small increase in same-store sales supported by our district manager structure and various merchandising initiatives. While our retail sales are growing nicely, the trend of lower sales to our nonretail customers continue to negatively impact revenue.…

Thanks, Shannon. Before I go into the details, I wanted to remind everyone that as it was disclosed in our press release and in the past 2 quarters, we now operate in 2 segments, North America and International. You may recall that prior to January 1, 2017, we operated in three segments, wholesale, retail and International. To better reflect how management analyzes the business and allocates resources, we combined wholesale and retail into North America effective January 1, 2017, while our International reporting segment remains the same. All prior year data discussed throughout this call has been recast to conform to the new reporting segment structure, and there is no change in reporting of our consolidated financial positions or results. Our third quarter consolidated sales totaling $18.4 million decreased to 1.3% from last year's third quarter sales with our International segment reporting a 9.5% increase, which was offset by a 1.8% decrease in North America. North America contributed 95% of third quarter 2017 total sales, while International contributed the remaining 5%. The $84,000 improvement in our International Leathercraft segment was partially due to a favorable foreign currency translation of the Australian dollar and euro as well as a higher number of sales transactions, particularly in the U.K. as our Manchester store continues to establish its presence. The sales decrease in North America consisted a 5.4% decrease in same-store sales offset by $634,000 in sales from the 7 new stores that have opened or reopened since October 2016. North America same-store sales decline was unfavorably impacted by recent hurricanes, which caused our 4 stores in South Texas and 5 stores in Florida to be closed for several days leading up the hurricanes and for several days afterwards not only for our employee safety, but for loss of power and/or ingress, egress…

Thanks, Tina. Given the tough results from the third quarter and an expected lingering impact from the recent hurricanes, we have lowered our 2017 guidance. We estimate consolidated sales to be in the range of $81 million to $82 million and EPS to be in the range of $0.50 to $0.52. Average shares outstanding, both basic and diluted, in 2017 are estimated to be approximately $9.3 million and our effective tax rate is estimated to be between 31% and 32%. We also expect that our inventory levels will be back in the lower to mid-$30 million range at year end. We are aggressively focused on finishing the year strong from the upcoming holiday shopping season and have introduced expanded holiday shopping hours for each of the Saturdays in December in our U.S. stores. We normally close at 4:00 p.m. in the afternoon on Saturdays, but we'll extend our closing to 8:00 p.m. for the Saturdays in December. In addition, with the higher traffic expected over the next 2 months, we are aggressively promoting not just our new merchandising initiatives, but focusing on our clearance items in such a way as not to impact gross margin. In closing, we believe in our long-term strategy and the key operating priorities to profitably grow the business. We knew 2017 was going to be a year of investment and that our district manager structure and other initiatives would take time to gain traction, and we have been transparent about that throughout this year. I recognize that it's painful right now, but the comparisons will get easier by mid-2018 and beyond. Thinking about 2018, on our next earnings call, which should occur in early March, we will provide further details regarding our long-term outlook. As always, I want to publicly thank all of our dedicated Tandy Leather team members who work so hard to move this company forward. That concludes our prepared remarks. We appreciate your time today and your interest in Tandy Leather. Operator, we're now ready to take questions.

Thank you very much for participating in our earnings conference call today. We look forward to speaking with you again next quarter. Have a great day.