Sally Frame Kasaks

From a profitability -- we can’t really talk to that right now because we have got some assumptions out there and it is very early in the game, Janet. Also, our inventories were very light. It is one thing to be anemic. We were probably anorexic out there. That said, the goods have started to flow in for summer and some things and we are seeing -- I think if you get out there you will be able to tell value stores as you get out there as the assortments get more full. Unfortunately, in the value stores we are very light on denim which clearly has been a strong business driver in the core business. So that is work in process. Certainly over time we are anticipating reasonably good profitability and it is not so much of a profitability but we really have discovered there is a slightly different customer in a number of these locations and we think we are meeting their needs right now. We will have a much better idea as we come out of Q3.

Janet Kloppenburg – JJK Research

I just wanted to ask Sally about the junior women’s apparel, this problem with shorts and swimwear. Looking back, how would you have better executed there? It has been a couple of years now; it was a good looking assortment. Is there a strategy to get by this? Maybe to bring it in even later than you already did?

Sally Frame Kasaks

Janet, we had to bring it in for that spring break time period, in certain hot markets we had it and it was not resonating. We looked at the assortment and in fact I have talked with a couple -- just before this call I was talking to one of our suppliers and they believe their assortment is probably the best it has been but it is just not resonating. I have to believe maybe swimwear is more discretionary. Maybe if you are not going on vacation you don’t need to go out and buy, particularly in the junior’s side in the bathing suits. So I think there are a number of things. It is beginning to appear that in that case it has become more price sensitive. I think from a delivery point of view I don’t think I can second guess as well on that because we did bring it in about six weeks later. I think the broader issue is it is a continuing smaller part of our business particularly in the juniors and young men’s. It is becoming a smaller part and we just have to figure out if there is a pricing strategy or something that we are not hitting on. To date, I am just glad that we continue to reduce our dependence on that category and hopefully over time in particularly the swim we can offset it.

Shorts to some extent, I am a little bit critical of the assortment particularly in juniors. Young men’s hasn’t been so bad but in juniors we probably went back to the well a little too far. Frankly color did well and there were some really good items within that. I think there are some lessons we are learning there as well. Certainly across the board shorts has just not been that strong.

Janet Kloppenburg – JJK Research

On the Bullhead denim will we see a new presentation for back to school? New washes, new finishes? Can you comment a little bit on colored denim only because others have raised concern that the colored denim segment may be slowing down?

Sally Frame Kasaks

We have not noticed any slowdown in colored denim. We shipped a package that came in actually mid-March which is typically a late time to be bringing in additional denim and we never even put it into the two for $55 deal. It was sold $42.50 day in and day out. It was turning. I think our assortment of our neons that went back to our printable tees created an outfit and in our environment we are very pleased. Some of you have said oh, you look like you have a lot out there. That is because we are replenishing to our best stores in that category. So, I think color will change as you go into fall. There will be new dimensions that are there both in young men’s and juniors but we are committed. Don’t forget though color is a very small part of our assortment. Ultimately, it is the shapes and the styling between the skinnies and the super skinnies and all that is going on in that unit whereas color is just another dimension on key styles.

Janet Kloppenburg – JJK Research

Great. Lots of luck for the second quarter.

Sally Frame Kasaks

Thank you very much.

Operator

Thank you. Our next question comes from the line of Liz Pierce with Roth Capital Partners.

Liz Pierce – Roth Capital Partners

Thanks. Good afternoon. I will add my congratulations to the expense control. Good job. Sally, how do you feel about hoodies for this fall?

Sally Frame Kasaks