Good day, ladies and gentlemen, and welcome to the third quarter 2008 Weyco Group earnings conference call. My name is Frances and I will be your coordinator for today. At this time, all participants are in a listen only mode. We will be facilitating a question-and-answer session towards the end of this conference. (Operator instructions) As a reminder, this conference is being recorded for replay purposes. I will now turn the call over to Mr. John Wittkowske, Senior Vice President and Chief Financial Officer. Please proceed, sir.

Thanks, Frances. Also on this call today are Tom Florsheim Jr., our Chairman and CEO; and John Florsheim, our President and Chief Operating Officer. On behalf of Tom and John Florsheim, I would like to thank all of you for joining us here today for our third-quarter conference call. Before we begin to discuss the results for the quarter, I will read a brief disclaimer. During the course of this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that some statements are just predictions, and that actual events or results may differ materially. We refer you to Weyco Group’s most recent Form 10-K as filed with the Securities and Exchange Commission. This document identifies important factors that could cause the company's actual results to differ materially from our projections. Additionally, some comparisons may refer to non-GAAP measures. Our SEC filings may contain additional information about these non-GAAP measures and why we use them. Net sales for the third quarter of 2008 were $57.2 million, down 2% from $58.2 million in 2007. Net earnings were $4.3 million for the third quarter as compared with $5.3 million in the third quarter last year. Diluted earnings per share were $0.37 in 2008 as compared with $0.45 in 2007. Wholesale sales for the third quarter were $49.3 million, down 2% from $50.5 million in 2007. Looking at each brand in our whole division, sales of our Stacy Adams brand were down 18%, Nunn bush was up 16% and Florsheim sales were down 6%. Tom will discuss our individual brand performance in a few minutes. Sales in our retail division were flat at $6.9 million. Same-store sales in the United States were down 2%,…

Thanks, John, and good morning everyone. Our results this quarter reflected the difficult economic and retail environment, as well as the impact of cost pressures on both our wholesale and retail businesses. While our individual brands have experienced some swings in volume this quarter, we believe that our overall sales held up well in light of the current climate. Our Stacy Adams volume fell off this quarter with net sales down 18%. The decline was in part due to timing of shipments. As we mentioned in our second quarter conference call, Stacy Adams benefited in the second quarter from the shipment of important new contemporary footwear programs to a number of national accounts. This pipeline fill resulted in a volume shift away from the third quarter for several key retailers. In addition to the timing shift, Stacy Adams continued to experience a general slowdown with the independent store trade channel, which remains an important part of the brand's business. While the third quarter was challenging, overall Stacy Adams sales for the first nine months remained flat compared to last year. The Nunn Bush business was a bright spot, with a 16% increase in the quarter. The Nunn Bush growth reflected the successful introduction of our new Dynamic Comfort line of slip resistant footwear as well as the continued strong performance of our Nunn Bush Comfort Gel product. As a leader in laterally priced branded footwear, we believe Nunn Bush is well-positioned to pick up market share during this price sensitive period. Our Florsheim business was up 6% in the quarter, reflecting the general slowdown in the market. The Florsheim brand tends to be at the higher end of the pricing matrix, in mid-tier department stores and national shoe chains, which are both important segments in Florsheim's account base. As such,…

(Operator instructions) And you have a question from the line of Ted Goins with Salem. Please proceed. Ted Goins – Salem: Good morning.

Hi, Ted. Ted Goins – Salem: Hope you guys are doing well. I just wanted to ask a little bit about 2009 in terms of their capital spending, and you had contemplated doing some work with Stacy Adams for ladies a few years ago, as I recall; and I was just wondering if you all are open to working the ladies shoe business at all or is that sort of off the table?

Ted, this is John Florsheim, the answer to your question about Stacy Adams Women's, we did do a test for Stacy Adams Women's and while they were certain encouraging aspects of the test, we thought really it was out of the realm of our core competence, the running a women’s division. And so, while we feel that there is long-term potential to find a licensee in women's for the Stacy Adams brand, we are currently not pursuing the Stacy Adams Women's business within Weyco in terms of running the business and turning them into (inaudible), and everything that goes along with our wholesale model. Ted Goins – Salem: And as far as CapEx for 2009, since you are not opening any stores to speak of, I am guessing that you won't have very much called upon for next year.

Red, this is John Wittkowske. Yes, that would be true. The majority of our capital expenditures in the past have gone towards retail and you are right, currently with our retail, there is no new openings planned. I would expect capital expenditures to be low next year. There is always some needs, – if I threw out a number and say $1 million, that is probably in the realm, but – unless something changes on the retail front, that would be a true statement. Ted Goins – Salem: And – in the past, we have worried about currency dislocations, maybe not such a concern right now. I'm wondering if you are seeing actual raw material break and so forth, given the economic environment (inaudible) you are actually seeing lower cost of goods to you.

Ted, this is Tom. We are starting to see some lower prices. You know, as we talked about in the conference call, prices are higher than they were a year ago, but what is happening is with weakening demand, there is more ability to negotiate with our suppliers. And there was a period of time earlier this year, where there was a lot of demand. And you had a situation because of the price of oil going up and other raw material increases that we had suppliers like bottom makers being very demanding as far as price increases. We are seeing that turn around. And the fact is, we are able to go back to the component makers and in many cases, get them to reduce prices. So we see the cost pressure not completely subsiding, but being easier to manage. And of course, transportation costs and anything affected by oil are going to come down based on just the price of oil coming way down. So I think that the environment from a price pressure standpoint looks much better today than it did six months ago. Ted Goins – Salem: And last question. (inaudible) you all showed a great deal of discipline in not pursuing a local acquisition to end, a year and a half or two ago. I'm wondering if you have heard any – if there has been anything in the paper up there about Allen Edmonds and how their demand might be and what might be going on competitively.

No, it has been very quiet. We have not heard anything. Ted Goins – Salem: Okay. Well, thank you very much and I think you are doing great. Thank you.

Thanks, Ted.

(Operator instructions) And there are no other questions in the call today. We would like to thank you for your participation in today's conference. This now concludes the presentation and you may now disconnect.