Liz Dunn – Thomas Weisel Partners, LLC

Hi, good afternoon. I think you mentioned that you were expecting to need to markdown spring goods to clear them to prepare for fall. Is that any shift in timing of the promotions? Did anything shift from Q1 to Q2? I was also curious about your outlook, just an updated outlook for cash for both the end of the second quarter and for the year end?

Sally Frame Kasaks

Mike, why don’t you speak to cash and then I will go back to the other?

Michael L. Henry

In terms of cash nothing has changed in terms of the previous guidance we gave relative to depending on where sales land. We know we can run a minus 20 comp all year long and end the year with as much or likely more cash than we entered this year with. Nothing has changed about that expectation. If we run closer to a minus 15 for the year we would expect to have $1.00 per share in cash. Nothing has changed about that as we figured it out.

Sally Frame Kasaks

In terms of markdowns, as we indicated our inventories are over 80% less than 90 days old. So we are in the process of turning and keeping inventories clean. We are very fresh right now. We were no more promotional in Q1 than before. So we are very clean on that. I think it is really going to be a function of sales because we do not want to go into the third quarter with an overhang of spring and summer goods. So our goal is to go into fall frankly cleaner than last year and then we would really be prepared for whatever fall business lies ahead. We see no value in holding on to any goods that hasn’t sold in the spring/summer season. So it is going to be a function of sales quite honestly.

Liz Dunn – Thomas Weisel Partners, LLC

That makes sense. Do you think you can accomplish the higher penetration of accessories in the same amount of space? The only other question I had was I just wanted to clarify there was no difference in performance of the value stores versus the core stores?

Sally Frame Kasaks

No, effectively not. We were a little bit lighter in inventory there but as the mix has come together the trends are very similar. In terms of space, we have really mapped a lot of this out. Certainly we have increased throughout the quarter in juniors and we are managing to the space as all the stores have accessory fixtures and in some cases we have put them in the back room and are just bringing them out on the floor. Certainly, as we go into back to school we always do convert certain walls to backpacks and some traditional back-to-school accessories. I think you will see us be very much in line with the overall look and feel of the store and we will just bring fixtures out that frankly have been off the floor for a couple of quarters.

Liz Dunn – Thomas Weisel Partners, LLC

Great. Good luck.

Sally Frame Kasaks

Thank you.

Operator

Thank you. Our next question comes from the line of Janet Kloppenburg with JJK Research.

Janet Kloppenburg – JJK Research

Hello everyone. Congratulations on a great comp. I just heard the question about the value stores versus the core stores. I was just wondering if profitability of one or the other is better than the other and if there is more work to do on the value stores to sharpen the assortment. Is this just an evolving idea or a transition?