Sally Frame Kasaks

Yes, good question. We’ve actively brought down our inventories but we have actually wanted to build in some flexibility to be able to adjust. So, for example in young men’s we accelerated T-shirt deliveries, we brought goods forward where we could. In juniors again, we brought some things forward not because we were concerned about sales in the month of February. I think our issue was to get these products in so we could get a good read on certain categories that we know we’re going to have to project for back to school.

That said, I do not think we’ve been too low. I believe we’re about right; it gives us the opportunity to chase. We had product positioned out there, are bringing some forward. We’re just doing the basic merchandising that happens in an environment which is not predictable. So, I feel like that the inventory levels are right. The only hindsight I might bring is that we probably should have slowed goods a little bit earlier in February just to be in position but it was not a significant amount.

Kimberly Greenberger – Citigroup

Okay. Thanks for the perspective, Sally.

Operator

Your next question comes from the line of Janet Kloppenburg with JJK Research.

Janet Kloppenburg – JJK Research

Hi Sally. Sally, I heard you talk a lot today about the assortment planning going forward, it seems like you might have a focus on pricing. Do you think that there’s some part of the assortment that can be skewed lower and is that more for the value stores? If you could talk a little bit about that on both the men’s and the women’s side? As far as the accessory build in inventory goes, when might we see that be complete?

Sally Frame Kasaks

Okay. First of all on the pricing, a couple of years ago we did identify key opening price points in the junior business in particular and I think we’re pretty level set give or take a dollar or two on some of these items. Young men’s, as you probably don’t recall but last July we did bring some very strong opening price points in fleece and a couple of areas and the response was uniformly very strong.

Therefore, Charlie and his team have really impacted that so if you’re in our stores today you’ll see some key opening price points in some knitwear, cotton sewn and we’re building on that. We’re more sensitive I think in our value stores, some of those prices tend to be a little bit lower on some product and in some product we are probably going to have compatible opening price points in both stores based on assortment. So, we’re still learning and it’s not just the store, it’s the value. We’re seeing it day in day out in our mall stores, the need for opening prices. The only concern I have and we’ve just done a walk through on that, we may not be strong enough in communicating some of that but those items are performing well.

In terms of part two on accessories, those are being flowed in, we just accelerated some product there. It will probably be I guess about end of March/April before we feel comfortable and certainly on the young men’s side though we brought in a lot of hats and sunglasses, I think you’ll see a stronger representation as we go in to back to school

Janet Kloppenburg – JJK Research

Okay and then will we start to see total inventory levels begin to come up a bit Mike as we move through the second and third quarter?

Michael L. Henry

As I mentioned earlier a bit perhaps from quarter-to-quarter it can move a few percentage points one way or the other so if it’s down 30% in dollars at the end of the year maybe it could be 25%. At any particular point in time it can move a few points either way.

Janet Kloppenburg – JJK Research

Okay and do you feel like your cost structure is now lined up or in line with this level of sales decline?

Michael L. Henry