When we look at the February product in there right now and the March product that is coming, we feel confident enough in it to spend the money on marketing.
Now we have run a one day only special a few times before at Old Navy, to try to get a whole bunch of traffic to come in on a Saturday. As we look at the marketing will start to get traction, to start it on February 26th and to have it run in parallel course with our product improving. And this is, the beginning of a long sustained campaign.
We certainly do not want to be irresponsible. The product is improving, the store presentation, execution is improving, and we get the right marketing message that we will take those three and test it and decide whether to spend the money.
In order for us to do this starting tonight, all three of those tests were passed, but we know the product at Old Navy needs to continuously get better. So it is not where we want to end up, but it is in a position we feel comfortable enough to spend this money.
Jeff Black (Barclays Capital): As we get through the year, do we look at operating expenses that are higher or lower, given marketing spend and these other investments?
Sabrina Simmons: About 50% of our operating expense structure is store related, and a big chunk of that varies with sales. So it depends where the view ends on sales on that store related piece of where the expenses goes.
On the non-store related expenses, we are absolutely committed to tightly managing those and, where appropriate, decreasing those. We have built some credibility in that area during 2008 and we are going to continue on that path.
Then the other bucket is marketing. We are committed to driving traffic and using marketing as one vehicle to do that so long as we feel like we are getting a return.
We will be monitoring that closely, including this campaign that is running in the first quarter, to determine how much we will continue investing in marketing as the year goes on.
Stacy Peck (Espy Research): Is the level of SG&A reduction you are achieving in the first quarter the same type of reduction you would be able to achieve for the year, assuming that sales kind of stay as is?
Sabrina Simmons: On the store-related sales, we are going to do our very best not to deleverage store payroll, store other expense. We have been successful in 2008.
It gets harder because the fixed piece will become larger relative to the variable piece as sales have come down, but our objective is to continue to manage those expenses so they stay in line with sales.
Marketing, will depend on the success of these campaigns how much we want to continue to invest. And we will try and be helpful each quarter directionally about where our head is and how we have evaluated that spend.
With the non-marketing and non-store, we will manage that tightly and down.
Stacy Peck (Espy Research): Why are you pleased with the Gap brand because the comps there have been just about as bad as Old Navy and Banana?
Glenn Murphy: We have been looking at our business on a number of different dimensions. One, we looked to Canada, where the economy is nowhere near as challenged as it is here in the U.S., but the product is identical. This is not the only measurement of how we are measuring our business.
From a comp perspective, we look at our business and we have a ways to go. We are looking at it from a total product and how it is on brand and where we see the momentum building with the team that is in place.
But when we go to Canada and look at a market that has not been as severely affected, we are actually very impressed, comparatively speaking, to the U.S. about how that business is doing and how that product is resonating.
Stacy Peck (Espy Research): How confident do you feel it is really going to reinvigorate the brand?
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