Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Eric Beder – Brean Murray, Carret & Co.
Eric Beder – Brean Murray, Carret & Co.
I'm going to ask the obvious economic question. How has the economy affected you guys? What are you seeing out there in terms of the department store reorders or canceled orders? How are you seeing the department stores that other people will look in terms of the economy?
Marc Crossman
I guess the best way to answer that first of all we’re not seeing canceled orders. They’re clearly ordering closer to the vest and I think when you look at premium denim as a whole within the department stores, it’s obviously a bright spot. I think if you look at the entire premium category again a bright spot I'd catch that as being, depending upon the store, anywhere from down 5% to flat up 5%.
Eric Beder – Brean Murray, Carret & Co.
In terms of the new stores, you've got four by year end what’s the kind of thought process in that you’ve signed already two leases where do you want to end next year in terms of stores? I know it’s very early but you’re already up to six so where are you kind of thinking of that?
Marc Crossman
You know it obviously is going to depend upon how the economic environment shakes out as we move into next year since we haven’t signed any more than two and those were for fall. You’re probably not going to see anything opening up in the spring in the near term. So I think we’re going to kind of watch and see how the market develops I think. If it stays roughly where we are in terms of the pace of our business then we probably open another four next year.
Eric Beder – Brean Murray, Carret & Co.
Okay in terms of your balance sheet I saw that the cash numbers are, cash is nicely up, inventories are a little bit up year to year, what should we think about in terms of year ending cash and inventory and how that’s going to flow, especially now at the retail stores?
Marc Crossman
This is the inventory side of things I think what we’re going to see is we’re obviously having to build up for, or did build up as this reflects in our numbers for the fourth quarter selling season and then really going into the fourth quarter, you’re not going to see that really come down because we’re gearing up for the new core program.
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