John Brouillard: We still feel the strategic plan did not do anything to make us feel that a 12% or so operating margin target is what we’re shooting for. We’re, depending on how you look at it, 300 basis points away from that now, and our plan is to build towards that margin.

Scot Ciccarelli (RBC): This has never been a price elastic category. How or why do you think you can drive better sales growth?

Jim Wade: From an overall standpoint, the focus certainly will be on our parts and parts availability and the core business that we’ve been in for a long, long time.

Looking at that by the two segments of the business, at commercial, we’ve demonstrated that we can grow that sales comp at a significant rate over the last several years, and we have got to refocus and make sure that we get that back to the double-digit types of rates we’ve experienced. We still have plenty of opportunity to do that, just by focusing on our business model for commercial and taking advantage of the growth in that market.

On DIY, the focus clearly has got to be on getting more customers back in the stores, and that starts with parts availability and our team having the knowledge to sell parts to our customers. We’ve got a good base and we just got to grow on that, but those are the key things that we’re prepared to talk about today.

Danielle Fox (Merrill Lynch): Could you comment on the trends in new store productivity? We calculated that new store productivity was less than 60% versus over 70% for most of last year, and could you share some of the numbers?

Jim Wade: We mentioned this last quarter as well and it’s the same type of situation where our new store productivity is comparable to last year; the numbers are almost identical to this time last year. Some of the other categories of sales, which include AI, has somewhat lower sales per store. Puerto Rico operation that we’re doing some things there that our sales are lower and some of the other categories of sales that aren’t actual Advance Auto Parts sales are affecting that. That’s what’s causing the calculation to not come out quite like it would have in the past.

Danielle Fox: Do you have a stated target in terms of sales per square foot for the traditional Advance Auto Parts store?

Jim Wade: We don’t look at it necessarily as sales per square foot, but the average sales per Advance store now is approximately 1,550,000. We look to continue to grow on that and certainly the new stores we’re opening have the potential to make and exceed that number over the course of their ramp-up.

Danielle Fox: In your comments you mentioned that incentive compensation delevered SG&A. Why that was and what’s different last year versus this year?

Michael Moore: We delevered incentive compensation by 35 basis points. Our incentive compensation is based on achieving sales and operating income to budget, and last year, we missed those metrics in the first quarter, so we paid less incentive compensation than we did this year. This year, a portion of those metrics was achieved, and we will pay out more incentive compensation.

J. David Cumberland (Robert Baird): With the greater focus on some newer areas due to the strategic review, are there any initiatives that you’ve had going on in the past that you might de-emphasize?

Jim Wade: I think it’s safe to say that we will be looking at all of the initiatives in every department to look at what return we are producing from that as well as how well that aligns with our new strategy. Certainly, there will be things that will be stopped because of the return or because they don’t align, and in some cases there will be things that are started that will better support what we want to do going forward to a greater level.

J. David Cumberland: For the store remodels, in the last call you talked about a plan of 150 for 2007. It sounds like that number may not apply any longer. Is that right?

Jim Wade: We’re going to take a look at the return now that we’ve done several of these using the new strategy and see what return we’re getting. From there, leave the remodel program like it is or change it depending on those returns. The 150 is not a number that’s absolute. It could change certainly in either direction depending on the returns that we’re getting as well as we’ll continue to define the scope of the remodel based on what we’re seeing happening with these stores.

Anthony Cristello (BB&T Capital Markets): In terms of your mix, what are you using to determine what parts the professional installer is wanting you to have versus what parts the DIY customer is requiring, and how are you going to balance that mix?

Jim Wade: It’s somewhat of a complicated question that our team will continue to work through over the next several months. But on a general basis, the model we’ve followed for commercial over the last several years which has proved to be successful is we have not changed our store mix significantly as we’ve added additional commercial business. We’ve basically leveraged off of the business and the inventory that’s in the stores.

We don’t anticipate that’s going to change dramatically, but it could change on a category-by-category basis. As we do more and more customer research, we’re able to look at the parts we have in the stores and the lines we have in the stores and see if they can support both our DIY objectives as well as our commercial. In most cases the answer will still be yes, but in some cases it may not be, and if so, our team will be looking at how we address that.

The same thing is true about the logistics network in terms of how many parts are in our stores versus in our local area warehouses and other places of trying to ensure from a commercial standpoint that we have the parts as close to the customer as we need to, to ensure that we can deliver quickly. Through our strategy review on an overall basis, our program has been reaffirmed as being a solid program. We’ve got to continue to adapt it and change it to access a greater stream.

Anthony Cristello: When you look at the commercial efforts, are you comfortable with a 25% mix of your business, or could you see ultimately commercial representing 30% or 35%? Before, it was a situation where you certainly wanted DIY to represent and commercial would supplement, but now it sounds like you’re not opposed to a more aggressive approach. Is that a correct assumption?