In the current weak retail environment, EL's mid-to-high end cosmetic and personal care products are in lower demand as consumers tighten budgets and forego non-necessities or opt for cheaper alternatives. EL's strong Q1 2009 (ended Sept. 30, 2008) sales and earnings were largely reliant on the weak dollar and strong performance in emerging markets such as Asia. As global economic conditions continue to deteriorate, EL will see a drop in demand for its products and greater competition from more discounted brands.