. Charron continued: "They are especially pleased that more than 70 percent of the sales increase in the quarter was derived from growth in our existing businesses, with significant contributions from numerous brands across our portfolio.
Notable performance was generated by our Mexx Europe, Juicy Couture, J.H. Collectibles, Axcess women's and licensed DKNY(R) Jeans (both men's and women's) wholesale apparel businesses, our cosmetics, Liz Claiborne and licensed Kenneth Cole accessories wholesale non-apparel businesses, our Mexx Canada and Lucky Brand retail businesses and our licensing business."
. Charron concluded: "For fiscal 2005, they are adjusting our sales increase guidance to a range of 6.0 - 7.5 percent and increasing our EPS guidance to a range of $2.98 - $3.04, reflecting our continued strong performance and the effect of the share repurchases in the second quarter, partially offset by the projected negative second half impact of a stronger dollar. This guidance includes the impact, which they estimate will be approximately $0.11, resulting from the early adoption in the third quarter of 2005 of FASB 123R ("Accounting for Share-Based Payment") as well as the shift in the composition of the Company's 2005 equity-based management compensation toward restricted stock and away from stock options.
They believe that it is appropriate to proceed with the adoption of FASB 123R in spite of the SEC's recent announcement delaying the effective date. It is also important to note that the shift toward restricted stock should ultimately reduce dilution and enhance shareholder value, as they expect that fewer shares will be used for equity- based compensation purposes than in prior years.