Marni Shapiro – The Retail Tracker

Hey guys, how are you? I had a couple of very quick questions around accessories, you said that you maybe took them down a little too much and I noticed in the stores over the last couple of weeks that you’ve taken a little bit of a bet on scarves, on sunglasses, certain pockets but I haven’t noticed things like jewelry or hats building back in there so I was curious what your thought was on accessories. And I was also curious, I couldn’t remember if swim was in your accessory department or was that in your apparel number?

Sally Frame Kasaks

It used to be. I think because of a buying responsibility, it has moved back and forth. It’s in apparel. I just saw Mike moving his mouth and I just wanted to be careful. We switched some of that out a couple of years ago. I think your observation is, if you noticed a couple of years ago our accessory business was all over the place, we peeled back and then we went after very aggressively the handbag business which was absolutely the right thing to do in junior’s, that business has slowed a little bit but I think more to the point we believe that accessories do complete the look for the junior’s customer so sunglasses and scarves clearly.

I don’t know if you’ve been in the stores in the last three days but jewelry has started to hit and all the girls are wearing it, it’s starting to move there so jewelry is clearly going to be a part of this assortment as are girl’s sandals. We’ve got flip flops but, girl’s sandals are a part of that as well. So, scarves, sunglasses, jewelry, the key leaders, handbags, a little less important now as that business has evolved.

Certainly in young men’s the hat business, the sunglass business important, belts remain somewhat important but I think for fall you’ll see a little more expanded in that areas. I won’t go in to all the details but we do have product starting to build in that area again because we think it’s really important to our concept.

Marni Shapiro – The Retail Tracker

Great. And then just a follow up, as the mall has become so promotional, it’s become basically sort of a mess but, at the same time your stores have been a little cleaner and I feel as if there’s a shift towards authenticity from the customer’s perspective away from just pure price. I’m curious if you guys have thought about ’09 and thought about some of your marketing agenda and trying to keep that past authenticity, the surf culture because the stores feel very California but can you take that to the next level? Is there a further way to do this?

Sally Frame Kasaks

Yes, I think there is and we’re working through some of that now. Charlie is heading off to Europe as is Brad as we speak. They’re looking for more products or ideas. We’re looking at for more branding ideas. I think price unfortunately is going to be a part of the component though, I don’t think we can get away from that right now. I do believe though that we can’t let price lead our positioning though and to that extent we’re re-looking at our back to school launch, when we launch denim in June which is what we typically do and a cadence of events around product categories that are important some of it being price depending upon the category, some of it is just highlighting it.

But, I agree, we cannot be run by just price alone though clearly we do see sensitivity particularly on opening price points and some of the deals we’ve done. I don’t mean deals in a deal like it’s a negotiation but there are some activities we’ve done that do drive sales and frankly drive other categories, we just have to understand that better.

Marni Shapiro – The Retail Tracker

Great. I am glad to hear that and good luck to you guys for spring.

Sally Frame Kasaks

Thanks a lot Marni.

Operator

Your final question comes from the line of Sean Naughton with Piper Jaffray.

Sean Naughton – Piper Jaffray & Co.

A quick question on the lease renegotiations, can you talk about if there’s any differences between your A mall locations, B or C with those landlords?

Michael L. Henry