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SG expenses of $209 million were 24.95% of sales or 132 basis points higher than last year's third quarter, driven by de leverage of payroll and admin expenses, resulting from the negative comp sales this quarter. Operating income increased $6.1 million or 39% to $21.7 million. Net income for the quarter increased 57% to $12.2 million..
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We committed to North Face Gloves and achieved $100 million in cost reductions. We reduced inventories by 17%, well above our prior guidance of a 13% reduction. We achieved an all time high in cash flow from operations of $973 million and we delivered our 37th year of higher dividend payments to shareholders..
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