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A few snips from their last analyst conference;

I have to tell you one fun fact to start with that did not come up in your question, but I want to tell you this. Mike Moore, a gentleman who works in our company and analyzes a lot of data for me before these calls showed me that stores that are 4 years old actually comped higher than even some of the new stores. So I just -- I wanted to point that -- again, that legacy stores are continuing to see outstanding comp performance.
As we told you in the last quarter, we were actually a little lean on inventory in Europe. While we've gotten ourselves into a better inventory position, we're still probably not 100% up to where we need to be. Again, the business there is moving faster than we had anticipated, so -- and in terms of the mix, we've said to you before, if you look at the retail stores on a comparable basis, very similar to the U.S.
So the great news is we're operating in markets that are expanding, but we do have the capability of taking market share from competitors, which is something that if you think about the size of the market and the -- and what we represent as a percentage of the total market just in U.S. handbags alone, we could take market share and grow substantially.
When we entered Europe some 3 or 4 years ago, we made the decision that we were going to lose money for an extended period of time and make significant investments in the market, and we're going to continue to do that. Europe is going to be profitable this year, but it's going to be marginally profitable, and it will expand over a period of time. I think we've indicated that, told you that. I think that we believe that you have to go in and you have to spend money. You have to spend money on advertising, marketing, the right stores and the right locations, the right infrastructure of people. I can't speak to what other companies do, but if -- you have to be prepared to sustain substantial losses over a substantial period of time to build the business. And we have always operated that way, including when we went public. We kept that same vision, and we're keeping that same vision. So I'm very confident in Europe. You're seeing the -- a sequential growth in brand awareness. We think that you really have to get that -- into that 60%, 70% range to get that lift. We really start to see the brand accelerating. And so we're a long way from that in Europe, as you can see, but we're patiently building that marketplace. Japan is a tougher build, because there are only a handful of brands in Japan that are really viewed as luxury, and it's going to take us a long time to get there in Japan. We've told you that. Think closer to 5 years for the development of Japan. And then we've even said to you in the Asian markets, think beyond that. It takes time, patience, money and the tenacity to believe that you're going to have something 10 years from now that's going to be worth something significant in value.

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