Edward L. Larsen: Fourth quarter is very cash flow positive, so we will be bringing those payable down to the fourth quarter. It will not be down to zero. We will make another payment on our acquisition debt in the fourth quarter, but we will bring it well down as we look at the fourth quarter. We are tidying up our capital expenditures. This year we will open about 73 stores with a capital expenditure budget of about $83 million. We’ll tighten that up next year a little bit and probably open fewer stores. We haven’t quite finalized that yet.
Richard Jaffe (Stifel Nicolaus and Company): Can you spend a second on fourth quarter marketing initiatives and how you anticipate the promotional cadence to proceed this year versus last year? You’re more timely with some markdowns and want to know what we should look for here, both in terms of promotional support and then in-store mark downs.
Trudy F. Sullivan: We’re not going to be very specific about the events that we’re going to run for fourth quarter, just for competitive reasons. But you can be sure that we have a lot more action going on this holiday than we did last holiday. And as we stated earlier, we are, started a cadence of taking monthly mark downs and not relying just on four sales a year. So it’s a blend of what we think are some really interesting and fun promotions and the timely action on taking our mark downs. I look at it as becoming, at least getting into the game with our competitors that in terms of some of the exciting offers that we’re bringing to the Talbots customers. But I can’t give you the specifics.
Todd Slater (Lazard Capital Markets):Regarding the product cycle, could you talk about your views on the down trending traditional missy classifications out there? Do you see a more contemporary move as short term or one that you might want to emulate a little bit without overstepping? And is there any way in which you see the Talbots brand moving directionally, at least, in a more contemporary way from a style point of view?
Trudy F. Sullivan: The Talbots brand positioning is quintessentially in the classic traditional lane. But classic traditional doesn’t need to be boring and dowdy and sombre. It can be very much upbeat and fun, high colour, you know, just have high energy.
We have great category opportunities. Not just women’s and petites, but non-apparel categories could be really a significant opportunity for the brand. Casual and casual going into sports could be an absolute opportunity for the brand. And we can do this and still hold on to the refined clothing side of it. I don’t like to use the word contemporary because I think people automatically think that we’re leaving our lane and that’s not our intention. Our intention is to execute our lane in a much more vibrant way.
Mimi Bartow (Telsey Advisory Group): A quick question about the refined and casual wear that mixes - how comfortable do you feel with it, and where do you want to go? Anything that you might be able to assess about goals in terms of the new ad agency?
Trudy F. Sullivan: We’re actually pleased with the mixed that we’re finding in casual. Our casual needs to be more refined, but it actually needs to be more appropriate to what our Talbots consumer would wear for casual. And that has things to do with fit and the refinement of the fabric and not overly washed and destructed and really lady-like. But in terms of the penetration of casuals to refined, I think we’re in a good place there.
We are excited about Publicis. They’ve worked with a number of clients that do cater into our target consumer. They did it with great style and élan and a really exciting voice, refreshing voice for the brand. So we are looking forward to getting into work with them
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