Mike Nicholson: At this point no.

Adrienne Tennant (Friedman, Billings & Ramsey): Behaviorally customers are not responding as well to pants this season as well as to the non-apparel. What replaces that as a category for you as you go into the fourth quarter?

Kay Krill: Pants are affected because dresses and skirts have been strong so they have primarily offset each other. As far as non-apparel goes, I think that that was self inflicted. We did not have enough newness in the assortment and we did not have enough depth in the newness that we did have. For example, patent shoes and handbags were phenomenal we did not have the depth in that category, long necklaces, and capes were products that did sell in accessories we just did not maximize them or have the appropriate depth across the chain. We do have more exciting accessories heading into fourth quarter so we do expect that to perk up. Others have experienced strength in that category but we did not. Other categories in the fourth quarter that will continue to strengthen our dresses are still on fire, outerwear has picket up with the colder weather as has cashmere sweaters and all of the weather sensitive items with this cold snap have picked up versus last year. We had a warm November and December last year. Beauty that we launched on Monday is going to be highly incremental to the Ann Taylor business.

Adrienne Tennant (Friedman, Billings & Ramsey): Do you have the basis point impact of those two one times?

Mike Nicholson: We are not going to disclose that.

Crystal Lanigan (DA Davidson): What is going with the fashion for the customers?

Kay Krill: We have done a lot of internal research and focus groups and exit interviews to find out what is going on in her head and she is being selective this season as far as what she is buying and because of the warm weather earlier on in the quarter she was just buying what was not in her closet and that was fall dresses, item jackets, patent accessories, all of the new things. As the cooler weather has come on we are seeing more strength across the board and as she has changed her closet is picking up more wardrobe essentials. Newness is the key factor and the key driver in her purchases this fall season.

Crystal Lanigan (DA Davidson): Would you say that personal research hasd similar feedback as far as Ann Taylor versus Loft?

Kay Krill: This trend is across both brands, and it is industry wide.

Barbara Wyckoff (Buckingham): Outside of more color and novelty, would there have been anything else you would be doing differently in terms of the flow, percentage of venues, classification, penetration, etc.?

Kay Krill: We are in a very colorful cycle. We would have had more color in both brands early on. I think that the novelty factor we continue to increase that percentage and it never seems to be enough, that is definitely been an appetite for her and also more fashion. We got stung with having fashion last year and Loft in the third quarter and this year if I had to do it all over again, I would have picked that up more. The one thing that was successful in Loft that I would have done more of in Ann Taylor is Loft had season less product offerings in August, September, and October so their performance was better because of that I would have had more season less options in the Ann Taylor division.

Barbara Wyckoff (Buckingham): Could you talk about some guidance on 2008?

Kay Krill: We will provide that next quarter.

Liz Dunn (Thomas Weisel): Over your history, you have had years where the magnitude of earnings for the third and fourth quarter was similar. The fourth quarter has higher sales volume but lower gross margin because it is a more promotional season. With your inventories being in such good shape, it looks like the fourth quarter assumptions could be conservative. Can you address that?

Kay Krill: We are entering in much better shape than last year. These wild swings that we have had in our fourth quarter performance have also been brand driven and last year Loft drove the decline in the fourth quarter last year. This year we are entering with both brands in good shape from a product assortment and from an inventory level. My only concern is that promotionally and as far as our competitive environment everything that we are reading and hearing is that it is going to get more competitive and more promotional and we are being cautious in our outlook because of that. There is nothing internally for us to believe that we are not going to be on the right track, it is more of an external influence.

Liz Dunn (Thomas Weisel): What changed in your pension plan assumptions and why?

Mike Nicholson: Essentially, it was a discontinuation or a freeze of the existing plan that was in place and expansions of the 401k plan across the enterprise.

John Emrich (Ironworks Capital): Was there an ongoing benefit from making the pension change?

Mike Nicholson: There was not material ongoing benefit to the company

Michelle Pan (UBS): Could you give an update on the trends that you have seen in Factory, particularly in October as traffic at the mall softened?