Neill P. Davis: No, we have not changed any outlook as it relates to the fourth quarter.
Janet Kloppenburg (JJK Research): On K&G you have easing comparisons going forward. With the economy and with this 15 stores cannibalization issue, have you considered the fact that the business trends could weaken?
George Zimmer: Our Board has approved $100 million stock repurchase and it did that because we wanted to send the message that even if things were to weaken we would still be financially strong enough to make a $100 million stock repurchase. we still feel good about things even in the worse case.
Janet Kloppenburg (JJK Research): Is there any execution initiative you could take where you could help the business improve?
Neill P. Davis: We are continuing to fund the advertising and television that is in support of the brand and the operating team there is working on some new merchandise programs and expansion of existing ones to help through this process.
Janet Kloppenburg (JJK Research): If you exclude the impact from the tuxedo rental write-off, you are looking at over 120 basis point improvement in the core business. Is there any reason why that could not happen going forward?
Neill P. Davis: It depends on the seasonality of our business relative to those basis points improvement.
Janet Kloppenburg (JJK Research): There was some consideration in fiscal 2008 to adding product to After Hours stores, core instead of just renting product to selling product. Is there any further push on that issue?
George Zimmer: We are looking at what we can do on that issue. We see there an opportunity, we are investigating.
|