Question-and-Answer Session
Operator
(Operator Instructions) Our first question is coming from Lyn Walther of Wachovia.
Lyn Walther – Wachovia Capital Markets, LLC
Couple questions for you, you mentioned at the ICR Exchange I thought that was interesting, you said that you were seeing some of trade down with customers. Can you elaborate on that and how are you able to measure that?
Leslie Goldman
Actually in fact we are seeing some trade down in customers and we believe that it’s actually a terrific opportunity for us. So as such we’re developing strategies to attract and cultivate this customer. But in the meantime our primary focus is still to aggressively pursue our existing customer base by offering better fashion.
Richard P. Crystal
And we have mentioned that and we have done some research studies recently with consulting firms that have given us some information based on consumer surveys.
Lyn Walther – Wachovia Capital Markets, LLC
Can you talk about some of the changes to marketing that you have planned? You mentioned eliminating some promotions, I’m just wondering how we should be thinking about that given the environment is so challenging right now.
Richard P. Crystal
As I stated we still intend to offer value, we are a value brand in spite of our DNA to speak. When we talk about eliminating promotions specifically in the first quarter we have cut out two across the board promotions 50 off the store and 40 off the store which we thought were not helpful to our brand so we talk about eliminating promotions that we don’t think were profitable and brand right but we still are a promotional brand and we still will have promotions out there. But as we increase the fashion content of our brand and we get acceptance to these new fashions and obviously we think that that will help the business and we can be a little less promotional than we were a year ago where we think we did it to excess.
Lyn Walther – Wachovia Capital Markets, LLC
And then finally just for Ron, does your guidance assume an improvement in accessories throughout as we move through 2008 because I know you mentioned seeing some improvement currently.
Ronald W. Ristau
In our guidance we have included and do expect that throughout the year that the accessory business will improve as we reposition it, particularly the jewelry business. So yes we believe that the accessory business will continue to improve throughout the year and that is included in our guidance expectations.
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