Michelle Tan – Goldman Sachs

Great. Thank you. Just a follow-up on the traffic comments you made earlier, can you give us a sense of how that trend of traffic that you gave for first quarter compares with the last several quarters. And then I have a follow up after that.

Michael J. Nicholson

In terms of last several quarters what I would say is that the overall level of traffic was fairly consistent with what we saw in the fourth quarter but as it relates to the year-on-year change; just keep in mind as we moved through the quarters of 2008 obviously there was a decline quarter over quarter. So when we look at it versus the prior-year quarter, rate of change is more significant but it’s essentially in line with what we experienced in the fourth quarter.

Michelle Tan – Goldman Sachs

Okay, great. That’s helpful. And then my follow-up is also on the inventory question for the second half, given that in the second half of last year the inventory buy ended up being well ahead of where you would have ideally liked it to be, would that suggest that relative to where you are in the first half or you’re even a little more aggressive than it looks on the surface in the second half.

Kay L. Krill

We’re not aggressive in the second half at all. We will still be below last year’s levels, absolutely. We just have opened it up a little bit compared to the first half of this year when we were down significantly. I don’t want anyone to think that we are definitely going to be higher in the back half of the year. We’re going to be double-digit negative for sure.

Michelle Tan – Goldman Sachs

Okay, great. Thank you and good luck.

Operator

Your next question comes from Janet Kloppenburg, JJK Research.

Janet Kloppenburg - JJK Research

Hi, everybody. A couple of questions. Kay, I’m hearing a lot about the repositioning of Ann Taylor and the new fashion styling there, I was wondering if you could elaborate a little bit more on LOFT and what changes we expect to see there. And also, just to go back to Ann Taylor if you expect the refined business to begin to improve in the back half of the year. And for Mike, I was wondering your guidance on SG&A for the first quarter was 250, you came in much below that. We have new guidance. I’m just wondering in light of, if top line becomes more difficult again in the second quarter, are there opportunities for you to sharpen that number as well. Thank you, guys.

Kay L. Krill

Okay, Janet, I am going to jump in right now. Let me just start with Ann and I’ll go to LOFT. I think that the fall product is much improved on many fronts and especially the style. I think it’s definitely distinctly more modern and compelling and the fabrics I’m very excited about because I think they’re softer to the touch and the feel which I think we have not had in the store for quite a while.

And as I said the fit has been tweaked to be more flattering overall. I think that the Ann Taylor product is exactly what it should be. It’s a good combination of refined and relaxed with a little casual chic area in the back of the store so I think we’re addressing her entire lifestyle but obviously focusing more on versatile separates that are just more modern in feeling.

I think as far as LOFT goes, it is less of an evolution than it is in Ann because LOFT’s full price business for the first quarter was really healthy and I think that as we go into the back part of the year what Gary and his team have done is really honed in on the feminine casual component of the brand because that’s really the heart and soul of LOFT and they have really backed away from the wear to work category pretty much altogether.

So I think that the DNA of LOFT is going to come alive in the back part of the year and I’m expecting very positive results for the back half of the year as far as full price selling.

Janet Kloppenburg - JJK Research