Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from David Mann from Johnson Rice.
David Mann - Johnson Rice & Co.
Yes. Thank you. Nice job in a tough environment, guys.
James Scarborough
Thanks, David.
David Mann - Johnson Rice & Co.
Ed, you talked about being able to leverage this year to flat comp. Can you talk a little bit in detail about some of the areas where you expect to have tight expense control given, you know, there clearly are some other pressures in terms of freight and other things and utilities in your cost structure?
Ed Record
Sure. You know, predominantly most of this leveraging is coming out of the corporate office. As we continue to open 70 stores and expand, we're going to leverage the corporate office tremendously next year.
In addition to that, we have initiatives in the stores that will allow them to leverage at a flat comp, both in utilities and in other controllables.
David Mann - Johnson Rice & Co.
Can you give us just a sense on the corporate expense, you know, what percentage of sales is that and how much you might expect to leverage that?
Ed Record
We don't give exact percentages, but we're looking at between 7% and 8% for corporate overhead and we expect it to grow about 2% next year.
David Mann - Johnson Rice & Co.
Okay. And then, Jim, in your prepared comments you talked about I guess the lack of must-have apparel and also I guess I've listened to you for too long talking about, you know, weather this time of year; it sounds like it may be tough a little bit thus far in March. Can you just give a sense on any indications on Spring merchandise, on how that's going?
James Scarborough
Sure, Dave, yeah. Actually, Andy and I were in New York last week. We were at Bear Stearns for a day and then got to spend a few days in the market with our buying team.
I can tell you that the merchandise looks a lot brighter and perkier than it did a year ago, particularly in the Missy area. Last year there was an absence of color. Generally when that happens our sales suffer for that, and this year we see lots of explosive bright colors and I think a lot of good looking product. So hopefully the lady that took the year off last year will be back shopping in our stores this Spring. Obviously in February our Stage division, when the long weather broke earlier, you know, I had some checkouts on Spring goods, so we're starting to see the activity that would support the sales level that we think color will bring back to the Missy area.
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