Don Blair: It was a challenging set of comp numbers, so yes, they were negative.

Margaret Mager (Goldman Sachs): Focusing on the US market a little bit, is there any inventory in the channels that needs to be dealt with at all, and how do you keep that balanced when you've got clearly disappointing results at two important customers?

Charlie Denson: US inventory, the US marketplace, is probably our best managed marketplace around the world. We've got the most resources. We have a full blown outlet store piece for the puzzle in play. I think the key thing for us now is, again, as we continue to do well here in the marketplace and may be some of the other competition starts to struggle little bit, we've got to be disciplined and up to make sure that we keep an eye on the appropriate level of product in the marketplace. It's something that we demonstrated we have the ability to do.

Margaret Mager (Goldman Sachs): How do you make sure you don't over sell the customers, is there a component on that front?

Charlie Denson: Well, that's a little bit of what we call the art and the science. That's the art piece and making sure that we are gauging the appropriate level of demand in the market and putting the right amount of product in the marketplace to liquidate. Over the last six or seven years, we've developed a pretty good discipline around that and that's something that we'll continue to stay focused on and keep an eye on. At the same time, we still believe the US market place is the growth engine for us and for the most parts it's pretty healthy right now. We got a little bit of challenge going on in the mall but overall all the channels of distribution are still pretty healthy. Overall, the entire marketplace is still healthy for us.

Margaret Mager (Goldman Sachs): Could you talk about your apparel business? You said Sports Essentials is driving it, but what else is going on in apparels, how is the women's business doing? What is your view of performance apparel that has cotton in it if you could talk about that? Lastly, when will Olympic marketing start to kick-in in a significant way?

Charlie Denson: The thing that we feel great about right now in apparel is the move forward that we've made around performance apparel. Both in Nike Pro and the compression part of the business as well as Nike Sports Essentials. I think one of the things that we've started to understand is this idea of franchised type items that have been always a successful part of the footwear merchandising line plan, is now becoming a bigger and more important part of the apparel line planning as well. And Nike Pro and Nike Sport, essentials are two great examples of that type of execution.

Margaret Mager (Goldman Sachs): Is women’s doing well?

Charlie Denson: Yes, it is doing well. And then, I think it won’t be the advertising, we will start to gear up and back half a little bit. But with the games, it will be pretty much the summer timeframe when things will really heat up around the world. So, and we don’t have all of our Olympic plans in place or confirmed just yet. So, I am not prepared to really start to get any more specific on that.

Margaret Mager (Goldman Sachs): Could you talk about gross margin and how you are going to achieve higher gross margins over the next two to three years if you care to?

Don Blair: We’ve talked about that one on many previous occasions. Lean manufacturing, SKU productivity, raw material consolidation, sales SKU reduction, between footwear and apparel, we see benefits in all those areas. Lean is a big story, and about a year ago Lean was about 19% of our footwear this past year, we jumped up to about 42%. And we see that continuing to grow in ’08, and then also being leveraged into apparel.