Good morning Kimberley.

Kimberly Greenberger – Citigroup

The RUEHL impairment charge that you are currently evaluating, I''m guessing that means that you don''t expect the future cash flows of RUEHL to recover the investment you''ve got in it. At what point do you sit down with the board and just discuss should this be a place to deploy shareholder capital or do we need to make some more serious decisions about the future of RUEHL?

Jonathan Ramsden

As we''ve said Kimberley, we are conducting a review of RUEHL and are looking at different options that are available. The impairment charge is driven by the fact that from an accounting standpoint we were deemed to have had a triggering event to do a review, pursuant to the stage we were at in looking at the different options. So it doesn''t denote a particular decision. It just denotes the fact that we had reached a point in the review where we did have, for accounting purposes, a triggering event and had to look at all of the potential options and outcomes and what that will potentially mean in terms of value of the RUEHL assets. So that is an exercise that we are currently completing, both from an accounting standpoint and then we have the strategic review itself.

Operator

We go next to John Morris with Bank of Montreal.

John Morris - Bank of Montreal

Thanks good morning everyone. Mike, you talked a little about where you missed it but in addition to the comments that you gave in the prepared remarks, where did you guys just nail it, in terms of fashion, by Abercrombie and Hollister? And then my follow-up is what have the learnings been so far, or lately, on Gilly Hicks? Thanks.

Mike Jeffries

First, the wins in fashion, clearly woven tops, we expanded the assortment in fashion, quality and that''s been a very, very good business for us across the brands. Sweaters have also been a very good business for us. Gilly Hicks, we learn about Gilly every day. I have to say John I continue to be hugely excited about Gilly. Our at-home business continues to be excellent and we are making progress in bras, underwear, and personal care. What we are learning about the bra business is a lot in terms of fit. Assortment, service in that business, we are learning that the underwear business for us is a business, the underwear and the personal care business is a business, where we are not going to compete as commodities or as commodity prices, and the underwear and the personal care business tends to be that. We are competing on fashion and quality and we think we have created niches that will enable us to win in those businesses. So lots of learnings, we continue to learn and very optimistic about the Gilly business.

Operator

We go next to Linda Tsai with MKM Partners.

Linda Tsai – MKM Partners

Yes hi, just a follow-up to John''s question about Gilly, how comfortable are you with the AUR levels at Gilly or is it too soon to comment on that?

Mike Jeffries

No, I think it''s a really good question. Our AURs in the at-home business are exactly the Hollister AURs. As the Hollister''s come down a bit, they will come down a bit in Gilly. We are in the bra business competitive with the biggest bra competitor and in the underwear business we will be higher because we are not going to be in commodity underwear business. We have a very clear game plan and we are comfortable with it.

Operator

For our next question we go to Richard Jaffe with Stifel Nicolaus.

Richard Jaffe – Stifel Nicolaus