I don't think the inventory increase should be a concern, especially given the strong growth in sales. UUU is not like a department store where high inventory means that markdowns will likely be necessary before the season changes. UUU's inventory generally keeps (unless a model is doscontinued) and gets them ahead of expected demand.
The results were excellent. We're basically growing at twice the PE. At least 1 x is fully justified and I very much doubt we will stay at a .5 PEG. UUU has now demonstrated multiple strong growth quarters and deserves credibility for putting up numbers consistently and despite a weak housing market.