Before opening this up for your questions, I would like to make the following observation. As we have been looking at the Filene’s acquisition we have been of course looking at our own K&G business in terms of how the two would be integrated. We have noticed that they sell more women’s wear than we do. We have noticed they sell more sportswear while we sell more career wear. They have less urban than we do. What I am saying here is that regardless of how this acquisition may turn out we feel that our default position still strengthens K&G and we see this still as our primary growth vehicle going forward.

Thank you and we will take our questions.

Question-And-Answer Session

Operator

Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, if you have a question, please press the star followed by the one on your touchtone phone. If you would like to withdraw your question, please press the star followed by the two. If you are using speaker equipment, you will need to lift the handset before making your selection. Please ask one question and one follow up and re-queue for additional questions. And our first question comes from the line of Betty Chen with Wedbush Morgan. Please go ahead.

Betty Chen – Wedbush Morgan Securities

Thank you and good afternoon, everyone. Congratulations on a great quarter. Neill, going back to your comments regarding Q2 it sounds like we continue to see business improving and stabilize in the second quarter. Could you elaborate a little bit more on what you are seeing of the K&G and The Men’s Wearhouse positions if we continue to see the promotions which appears to be expanded for Men’s Wearhouse so effective in driving traffic. That would be very helpful. Thanks.

Neill P. Davis

The promotional activity that we initiated back in November in the beginning of the fourth quarter last year that has continued into the current fiscal year is as I indicated in the first quarter having positive impact on traffic levels. It continues into the second quarter.

The second quarter is a key quarter for us relative to our overall promotional activity on a normalized basis as we have built up our positioning and programs around the month of June. So we are now in the middle of those events and our customers are beginning to see greater depth in terms of the value that we are making available to them in our stores and this is both true with Men’s Wearhouse as well as K&G. And I am sure that you may have seen some of that color in some of our advertising and George had touched on it a little bit earlier so the continuation of responses there and that’s a big reason why we have given our same store sales for retail in the second quarter at a stronger pace than that that we gave going into the first half this year.

Betty Chen – Wedbush Morgan Securities

Great. And could you elaborate a little bit more about what Mary Beth has been doing. I know that she has been repositioning ever since she joined the company in the merchandising at K&G. Could you give us a little bit more color around what’s been working in the men’s category and the women’s? And what are some changes that we could see happening at that concept?

George A. Zimmer

Yes, let me comment Neill and then you might add. One of the things that should be mentioned is that our inventory levels are being managed extremely carefully and one of the things that Mary Beth has been instrumental in is decreasing our men’s inventory and increasing our ladies inventory. Now I would tell you and this is again fairly real-time we have been talking on the telephone this week but I believe that Mary Beth now has a heightened sense of confidence about the direction that she is taking the company.

We have moved the suits to the back of the store and have ladies upfront. This seems to not hurt suits and help ladies. So, we are really thrilled with Mary Beth.

Operator

Thank you. Our next question comes from the line of David Mann with Johnson Rice. Please go ahead.

David Mann – Johnson Rice & Company L.L.C.

Thank you. Good afternoon. In terms of the Tuxedo rental business, can you talk about some of what you have been trying to achieve in terms of converting the customer to retail purchases.

George A. Zimmer