Operator

Your next question comes from the line of Stacy Pak with SP Research.

Stacy Pak – SP Research

Thanks. I guess a couple of follow ups, one is, Mike, can you tell us how that SG&A, the $35 decline gets split by quarter? Two is, did you say, I just want you to repeat I think you said there’s a $25 tax refund in Q2 and then are you pretty much scraping the bottom of the barrel now on cost reductions or are there more opportunities? And Sally, to the extent you’re comfortable, can you comment on the spring assortment in juniors in particular and kind of what feels right to you? Thanks.

Sally Frame Kasaks

I’ll take it first. I will just take up on that quickly because I think those are the questions probably we can go a little deeper. We have a little less emphasis on our key item, in the past we might have had more inventory in key items. Although we have key items out there we have broadened our assortment somewhat on a SKU and fashion basis so I’m feeling pretty good right now. There are some categories we’re going to accelerate deliveries on because there’ve been some good trends but I don’t want to get ahead of ourselves there. But, I think by broadening the assortment a little bit and depending a little bit less on those very high piles of key items I think we’re going to attract an increasingly more diverse junior’s customer within the store.

Stacy Pak – SP Research

Okay, great.

Michael L. Henry

I’ll take those three parts, with regards to SG&A, we are only guiding one quarter at a time at this point so I would just suggest for now the safe thing to do is take that $35 million savings, divide it by four and put it across each quarter equally and you’ll be close enough for now. We’ll certainly provide greater clarity as trends change and we go through the next quarter and see what the run rate is then and we’ll certainly be updating that each quarter as we go. But, that should be safe for now.

Yes, we did say we do expect approximately a $25 million federal tax refund somewhere in the middle of the year, latter half of Q2; early Q3 is probably the appropriate timing for that. And then, are we at the bottom of the barrel? No, as we think about CapEx I’ve stated that it would be not more than $30 million. We can pull that down further by another $5 to $10 million or so.

If we see things get considerably worse, we can decide to pull other things off the table and defer them until a later time if that came to pass. If things were to get worse than the trend has suggested for Q1 we’d certainly have the ability to reduce store payroll and do other things here related to travel and other projects that are planned for the year. There’s a variety of things that we can still squeeze. It wouldn’t be a dramatic number but we still have the ability to pull several million more dollars out of the model if we had to.

Sally Frame Kasaks

Stacy, one other thing too, in terms of the assortment, you highlighted particularly the junior’s but our young’s men business, we are building inventory in certain categories which I think this week you’ll begin to see. We have pulled some goods forward because I think so often our conversations get focused around the junior’s business but I think you’ll see greater conviction in our T-shirt business and I just think you have to understand that that’s happening, it’s not a key item but it’s a key category that offers a lot of diversity and I think value to our inventory.

Stacy Pak – SP Research

Okay, great. Thanks guys and good luck.

Sally Frame Kasaks

Thanks Stacy.

Operator

Your next question comes from the line of Marni Shapiro with The Retail Tracker.