After a year of very difficult business for Nike, there was a sense that the U.S. business was starting to see a turn. The Foot Locker issues and the potential escalation of promotional activity by the retailers puts a question mark on that.

If it's a way of expanding toys into a year-long business, then electronics and furnishings make sense,

It never really was difficult for me not starting because I understood the circumstances,

If this had been last year, we would be starting a week later.

It was incredibly emotional. It was hard for them to take care of business. I'm proud of them for staying together as a team when they were hurting as much as they were. The girls and I are really concerned about her family. Our thoughts and prayers are with them. The girls walked into the gym in tears.

The remaining question now, however, is the fate of the Saks Fifth Avenue division. We believed a breakup was the likely outcome for Saks and today's report confirms our expectation. However, current trends do not suggest much upside from current levels. Instead, upside to current valuation hinges on a turnaround at the Saks Fifth Avenue business, which we consider unlikely under current management.