Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Sam Panella – Raymond James.
Sam Panella – Raymond James
With respect to the restricted cash the increase resulted from the amended credit facility? Will that cash remain restricted throughout the balance of the year?
David Dick
That cash will remain restricted for the balance of the year. It will actually will be restricted for the life of the facility so if you look at the balance sheet you will notice it is listed as a non-current asset.
Sam Panella – Raymond James
When does that facility expire?
David Dick
June 2011.
Sam Panella – Raymond James
How are the class of 2008 and 2009 stores performing relative to your older stores?
Robert Bernard
As we continued to report their productivity is better than their previous classes of 2006 and 2007. We have improved our selection process of where those centers are. In our 2009 stores and as we go forward we have been able to focus and be very, very selective with our landlords to ensure they are in the top centers in the country. I think our current performance in the tough economic environment is ensuring the quality of the stores we are opening are of a nature of these A malls that do over $300 million a year.
Sam Panella – Raymond James
Are you able to quantify the impact of the tax-free shift on your same store sales for the quarter?
David Dick
The number was probably a little bit under 1.5% for Q2. For the quarter.
Sam Panella – Raymond James
In the current back-to-school period how do you feel about the promotional environment relative to last year?
Robert Bernard
From my point of view clearly there is a lot sharper pricing out there. I think in a competitive set those people that serve as our customer we have seen some corporations promoting that historically have not. That was a major shift in the marketplace. Within the competitive set promotions are deeper from our competitive set. We are not experiencing that we need to go deeper. We don’t feel that it would be in line with our brand which we feel we are affordable. We feel we offer value and we have our $10 gift card on denim which makes us the best place in the entire mall to buy denim for the quality, price and value. I think promotions are broader, deeper and more aggressive.
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