Net income slipped 24% to $45,284,000 from $59,535,000 in the second quarter, pulled down by higher SG&A spending despite an 11% increase in sales to $1,134,797,000 from $1,025,934,000. Gross margin expanded 180 basis points to 49.4% boosted by higher international sales, but that was more than offset by a $79.7 million, or 350 b.p., increase in SG&A. Operating expenses included an additional $14.1 million in selling expense, largely from ramped up international advertising, and $65.6 million more general and administrative spending on developing international brand presence and direct-to-consumer channels, with almost half of that on China alone. Foreign exchange losses ... Log in to view full article.