Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Margaret Whitfield with Sterne Agee.
Margaret Whitfield - Sterne Agee
Good morning, everyone. I wondered, Dennis and David, if you could discuss the outlook for gross margins beyond this year. Do you still see opportunities improving your direct and private label?
Dennis R. Hernreich
I think we’re expecting gross margins to relatively plateau in 2008, but should be maintained thereafter.
Margaret Whitfield - Sterne Agee
Okay, and how about the square footage outlook beyond this year? Do you still see opportunities to increase your store base?
David A. Levin
I think that’s a good point. We continue to see opportunities in the West Coast for Casual Male. We’ve just done a trip out there, but we kind of see high-single-digit, new store openings really starting to wane as far as store closings. We’re in a very good position right now. We’ve over the last four or five years, we’ve closed 40, 50 stores that were not really driving any margin for us. So our real estate is in very good shape right now and we see somewhat growth but not a real driver at this point in time.
Margaret Whitfield - Sterne Agee
And two modeling questions for Dennis; the D&A outlook for this year and the tax rate?
Dennis R. Hernreich
Tax rate, about 40%, Margaret, and D&A, about $17 million.
Margaret Whitfield - Sterne Agee
Thank you.
Operator
Our next question comes from Betty Chen with Wedbush Morgan.
Betty Chen - Wedbush Morgan
Thank you. Good morning. I was wondering if you can talk a little about during the fourth quarter and perhaps so far in Q1, if you’d seen any sort of regional variations amongst different brands.
And then secondly, to follow-up on the earlier question, can you give us the openings and closings by concept please for 2008? Thank you.
David A. Levin
As far as opening and closing by concept, they would all be Casual Male -- I mean, I’m sorry, closings would all be Casual Male. Openings, we have one new store opening in Rochester and the rest are Casual Males.
In terms of by market area, what we see going on, I think it’s consistent with what other retailers are saying. Our Florida market has been our weakest market now for several months. Surprisingly, where we’re hearing a lot of problems in Southern California, we are doing well there. I don’t -- don’t seem to be falling in line there. I think that could be a matter of operationally, we’re just much better positioned than we were a year ago.
- To read the full transcript on Seeking Alpha, click here »
