Net cash used in investing activities was $158 million in the six months of 2005, compared to $71 million in the six months of 2004. Net cash used in 2005 primarily reflected the $29 million payment made in connection with the acquisition of C & C California, the $35 million payment made in connection with the purchase of an additional 8.25 percent of the equity interest of Lucky Brand and the 45 million Canadian dollars ($37 million based upon the exchange rate on such date) final payment made in connection with the fiscal 2002 acquisition of Mexx Canada as well as $60 million for capital and in-store expenditures. Net cash used in 2004 primarily reflected $63 million in capital and in-store expenditures.
Net cash used in financing activities was $84 million in the six months of 2005, compared to $89 million in the six months of 2004. This $5 million decrease primarily reflected a year-over-year reduction in the purchase of common stock, partially offset by a year-over-year decrease in proceeds received from the exercise of stock options.
FORWARD OUTLOOK
For fiscal 2005,they are adjusting their sales increase guidance to a range of 6.0 - 7.5 percent, reaffirming their operating margin guidance in the range of 10.9 - 11.1 percent and increasing our EPS guidance to a range of $2.98 - $3.04, reflecting our continued strong performance and share repurchase activity in the second quarter, partially offset by the projected negative second half impact of a stronger dollar. This includes the impact, which we 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") and a shift in the composition of the Company's 2005 equity-based compensation discussed above.