Full year capital expenditures were $63.6 million net of landlord allowances of $11.1 million. Capital expenditures for FY ’09 were higher than our previous guidance due to spending on fiscal year ’10 store openings. This additional spending in fiscal year 2009 reduced our planed FY ’10 capital expenditures. Investment in IT and store-related expenditures including store remodels and new store openings represented the majority of the capital spending in fiscal 2009. We expect fiscal year 2010 depreciation expense to be approximately $56 million.

Based upon management’s operating assumptions and current economic conditions, the company expects fiscal year 2010 earnings in the range of $0.70 to $0.85 per diluted share. This excludes any gains on debt repurchase. This guidance is based on an expected same store sales decrease of 2% to 4%. You can find other key considerations related to our outlook in the earnings release issued earlier today.

At this time, Darrell and I would be happy to address any questions you may have.

Question-and-Answer Session

Operator

At this time, if you would like to ask a question, please press “*” and the number “1” on your telephone keypad. If you would like to withdraw your question, press the “#” key. Our first question comes from Bill Armstrong with C. L. King & Associates. Your line is open.

William Armstrong – C. L. King & Associates, Inc.

Good afternoon Darrell and Jim. I see gross margin was down in Q4 due to markdowns on seasonal. You did have I believe lower seasonal inventories going in to the holidays so was it an issue of still having too much in there or was this really just unavoidable?

Darrell Webb

It was still an issue of having too much in the sales environment for last year. None of us could have anticipated how tough that holiday season would be so while we bought down double digit in terms of cost going in to the season, it wasn’t enough and we had to take deeper markdowns to sell through.

William Armstrong – C. L. King & Associates, Inc.

How do you feel about your inventories right now going in to the spring especially regarding seasonal categories?

Darrell Webb

We feel very good about our current inventory positions and our sell through on spring seasons is actually in very good shape right now.

William Armstrong – C. L. King & Associates, Inc.

Okay. Regarding your guidance, I know you don’t give quarterly but maybe just a little bit of color, I mean are we assuming maybe the first half is going to be worse than the second half in terms of comps and other metrics?

James Kerr

Like you said Bill, we’re not going to give specifics by quarter. We’ll update the full year guidance after each quarter. But, as we look at how the year may play out as we’ve said in our core sewing and craft businesses remain fairly stable. The seasonal business was tough so as we get in to next year we would assume the sewing and craft businesses hopefully will remain fairly stable throughout the year and seasonal businesses we’ll actually plan down. In terms of the overall economy, as Darrell said we didn’t plan for any significant improvements in the economy. We’re taking a conservative approach on the sales side in to our buys.

William Armstrong – C. L. King & Associates, Inc.

Okay and then last question, you mentioned in Asia you’re now actually seeing product cost deflation, the opposite of the situation you had last year. What sort of percentage deflation rates are we seeing?