Thanks very much. A question on the average unit retails coming down at Hollister. Will you simply through better sourcing just pass the savings on to the consumer so your initial gross margin is identical to what it was? And then the savings through better sourcing will just be reflected in better values for the consumer. Is that a safe way to look at it?

Mike Jeffries

Exactly, but with the important caveat that we continue to improve quality and we''re not taking anything out of the garments. But that''s the formula Richard.

Operator

And we go next to Michelle Clark with Morgan Stanley.

Michelle Clark – Morgan Stanley

Yes good morning. Mike, in the press release out this morning there is a comment about a price-conscious consumer and that being relatively temporary in nature. First question is one what supports that view and if it''s longer-term in nature, can you talk about the longer-term positioning of the brand. Thank you.

Mike Jeffries

Michelle we believe, I believe, that the biggest trend in the world, long-term trend, is a flight to quality. I absolutely believe that. That''s what we founded this business on and over time it has proven itself to be true. We shall hold on to it by fire. To say that people are going to flee quality over time makes absolutely no sense to me. We are in a time that is difficult in this regard, but to say that society is going to change its point of view about this, just flies in the face of the history of the world. To me, there will be aspiration. That''s the basis of what we''re saying and I continue to believe that. Look at our business. In Europe at this point there is a flight to quality, quality in merchandise, stores, store experience. We will continue to stand for that.

Operator

We go next to Jennifer Black with Jennifer Black & Associates.

Jennifer Black - Jennifer Black & Associates

Morning Mike and thanks for taking my question.

Mike Jeffries

Morning Jennifer, how are you?

Jennifer Black - Jennifer Black & Associates

I am great, thank you. And you?

Mike Jeffries

Good.

Jennifer Black - Jennifer Black & Associates