Betty Chen (Wedbush Morgan Securities): Are we seeing better leases and rates given you have a substantial number of stores up for renewal in upcoming years and is there’s any way you can help us quantify the level of saving that we may be able to see?
Neill P. Davis: That’s the reason that we gave you the dollar rates of change in the first half and gave the perspective for the back half. It’s one of our priority areas and we will continue to focus on it but the best guidance I can give for you at the moment is what we’ve already done for this year. As we get into the first quarter and the middle part of the year, as we get more experience and can look longer term as to what we might be able to do, we can update that perspective for you at that time.
Betty Chen (Wedbush Morgan Securities): In terms of the store opening plans this year, you said you may open up to 10 stores. Which concepts might you be more inclined to open stores?
George A. Zimmer: It’s mostly Men''s Wearhouse stores. This is because of the tuxedo rental business when we find good economic opportunities in the same shopping centers as David’s Bridal those are locations we want and of the 10 probably 70% will be Men''s Wearhouse.
Richard E. Jaffe (Stifel Nicolaus): Could you comment on the denim opportunity within the soon to be renamed Men''s Wearhouse Tuxedo stores and a sense of inventory commitment and when it’s going to start to shift both in terms of signage and also product mix and floor sets?
George A. Zimmer: This is a large scale endeavor that has been underway for some time. We have virtually completed the rebranding, the signs. All 480 stores should have new signs up so you can go look at it in most regional malls in America. We are trying to get the stores set up and the product in the stores in time for prom which is of particular importance in this division because of the locations in regional malls.
The conversion cost is nominal relatively speaking per unit, under $10,000 and I don’t have the dollars of new inventory but it is not insignificant. It involves not just jeans and shirts and vests but involves suits as well so they will participate in our BOGO program, buy one, get one and have inventory for the occasional customer that wants it.
Susan Sansbury (Miller Tabak + Co., LLC): You mentioned that you closed two K&G stores last year fourth quarter. Can you comment on store closures in 2009 and which concept?
George A. Zimmer: I’m not positive but the two stores you’re referring to were actually impairment charges, not closures.
We actually didn’t close the stores. No, there are no significant store closures. The biggest store closure division is going to be the MW Tux, Men''s Wearhouse and Tux division. |