Your next question comes from Roxanne Meyer with UBS.

Roxanne Meyer – UBS

Good morning. I was just looking for a little more color on your new strategy – merchandise strategy at Ann Taylor. In your prepared remarks you talked about re-looking at the mix and SKU reductions and I’m just wondering if you could give us a little more detail as to, you know, what that means, how the mix is going to be comprised, where you’re going to remove some SKUs and just based on your new skewing towards more fashionable looks who do you consider to be your sweet spot in terms of your competition and how that can change? Thanks.

Katherine Lawther Krill

I don’t want to get into the specifics of the mix right now, but what we are doing is we are protecting the assortment for profitability to better balance key items with fashion, which we feel like we did not do a good enough job before and also, to continue to reduce SKUs in this division. We took one stab at it going into the back half of this year. We further reduced the styles and SKUs going into ’09. We’ve reduced store sets. We’re trying to build more of a base to the business, a foundation of styles that we’re calling The Perfect Pieces that will last from quarter to quarter and build the fashion and the key items on top of that. We feel like that’s the way to go.

The other thing is that we’re really returning to our heritage to try to be the style based destination in Ann Taylor for what is modern and relevant for the working woman today. I think it’s very different today than it was a year or two years ago and this is a work in progress and we feel like we’ve made a lot of good progress going into fall ’09 on this initiative and good progress in reducing some SKUs in spring and summer ’09, but we really feel like the back half of the year will more fully reflect where we’re going with this division with the new design team.

Operator

Your next question comes from Barbara Wyckoff with Buckingham Research.

Barbara Wyckoff - Buckingham Research Group

Hi everybody.

Katherine Lawther Krill

Hi.

Michael J. Nicholson

Good morning.

Barbara Wyckoff - Buckingham Research Group

Hi. In the restructuring efforts, have you combined merchandising support areas between divisions like technical and production or responsibilities still siloed by division? And then secondly, do you have separate design and merchandising organizations for the four divisions meaning Ann, Loft, Factory, and Outlet or do you run the Outlet, Factory business as an adjunct to the core brand and then I just have one quick follow up.

Katherine Lawther Krill

Okay Barbara. As far as we do – sourcing is definitely divisionalized; we have separate teams for the Factory and Ann and Loft but they report into the chief supply chain officers as well as the technical function. As far as design teams, Ann has their own design team and Loft has their own design team and the Outlet - the Factory and Outlet businesses basically is a best seller business from the brand, so they do not have design functions.

Barbara Wyckoff - Buckingham Research Group

Okay, okay. And then just one last follow-up, I mean honestly Ann has been – Ann Taylor Stores has been struggling for a long time to get a more modern and relevant assortment, so you know I’m hearing the same thing over again. You know, Kay, what gives you the confidence that this will work? I mean, this has been a long time so you know what is different than before?