Brian Nagel – UBS

Okay and then one final quick question. It looked your inventory at the end of the quarter was up about 15% year-over-year. It tracked a little bit above your sales growth. I think you commented before that inventory''s in good shape. Is that basically in line with your plan or is there any reason for the variance there with sales?

Lawrence P. Molloy

This is Chip. Part of that is the timing of the store growth so we have about 11.5% more stores this quarter than we had last quarter. Part of its inflation, so 600 plus basis points of inflation adds to that. However, this was part of our plan. We expected to be in this position and we expect, based on where we''re going and where we are even today that those inventory levels will be in line with our plan and from a year-over-year perspective, by the end of the year we''re expecting about a 12 to 13% growth top.

Brian Nagel – UBS

Great thanks a lot.

Operator

Our next question is from Joe Feldman from Telsey Advisory, your question please?

Joe Feldman – Telsey Advisory Group

Yeah hi guys, good afternoon. Follow-up on services, I noticed during your commentary on margins you had mentioned that the gross margin was down a little bit, maybe 10 basis points or so and because of services? And I was just curious if you could just explain what happened there? Is it maybe a shift between the services, or?

Lawrence P. Molloy

This is Chip. It is just we had less sales than we anticipated and the timing of the labor within that. We put all of our labor up in our services line against the gross margin, both the labor in the hotels as well as the labor for grooming and the fact that we saw a little bit of slippage there maybe all in gross margin for those two businesses a little less than historically they''ve been. But we''re ahead of it now. We understand where we''re going from a Q4 perspective and we plan the labor accordingly.

Joe Feldman – Telsey Advisory Group

Then one other quick question, I know Canada''s not a huge part of the operation but just given the way currencies have been, was there any kind of currency impact to note in the quarter or maybe going forward that you guys are expecting?

Lawrence P. Molloy

There was a currency impact. We didn''t quantify it but we have 60 stores total in Canada so it did have an impact on us. The business in Canada actually on a Canadian dollar perspective is in great shape. It''s doing really well but it has impacted us and we just haven''t quantified it and we''ve planned it in our guidance going forward.

Joe Feldman – Telsey Advisory Group

Okay great, thank you guys. Good luck for the quarter.

Operator

Our next question is from Peter Benedict of Wachovia, your question?