Then I don’t know if you guys have any update on what’s going on with the whole thing with Project Runway or some of the other Hollywood publicity that’s going on that could positively impact your selling category?
Darrell Webb
We do carry some Project Runway branded merchandise in our stores, sewing notions and related items and they’re doing reasonably well. Not blowing out the doors by any means. We’ve talked to those people about doing some marketing with them but at this point have not put a deal together.
James Kerr
We continue to see interest in our education program. Primarily, as it relates to your question in the sewing classes which I think is a good sign, it kind of ties in to that whole trend and what you see on TV.
Joan Storms – Wedbush Morgan Securities
If you could comment at all about any new categories you may be looking at or specific targets that you may be focusing on for expansion or significant makeovers this year?
Darrell Webb
Some of the categories that are doing real well for us right now, needle work, yarn we’ve mentioned. We have a new line that we just brought in with Deborah Norville as a spokesperson and it’s doing very well as the Vanna White did before. Christy Brinkley has a new line of home decorating fabrics that we’ll be rolling out this spring, a number of new basic planograms, a new Foamies planogram that we think is going to do very well. Also, a new item in the technology area called Yudu which is for screen-printing T-shirts and similar items. That got off to a nice start a couple of weeks ago. There are a handful of things that are giving us some confidence that the business will remain stable.
Joan Storms – Wedbush Morgan Securities
Thank you.
Darrell Webb
Thanks Joan.
Operator
And once again if you have a question, please press “*” followed by the number “1” on your telephone keypad. Our next question is a follow up question from Jeff Stein with Soleil Securities. Your line is open.
Jeff Stein – Soleil Securities
A question for Jim, Jim I’m wondering does SG&A delever on a -2% to -4% comp?
James Kerr
Yes. As we’ve said before we need around a 2% positive comp to get leverage. This year we’ve achieved significant leverage on only a 0.5% comp but there’s probably two things that happened this year that will be tough to repeat that level of improvement next year, one is on store payroll, we had significant leverage this year, it was the first full year for Ken Haverkost, our EVP of Stores, he put a lot of controls and processes in place that helped us lever payroll this year. And the other is on the distribution side with the improved inventory flow and the reduction in inventory we got some nice leverage there. Those are both leverage points that we’ll be able to maintain but that level of year-over-year improvement will be tough to repeat.
Jeff Stein – Soleil Securities |
