Question-and-Answer Session
Operator
Your first question comes from Laura Richardson - BB&T.
Laura Richardson - BB&T Capital Markets
I just wanted to try to get a little more color that's going to help in my Q2 estimates, although you guys are still not doing specific quarterly guidance at this point, right?
Kathleen Mason
Correct.
Laura Richardson - BB&T Capital Markets
Didn't you say there was extra SG&A in September quarter for early receipt of merchandise? So, the implication is some of that should be a relief in the December quarter?
Kathleen Mason
Yes.
Laura Richardson - BB&T Capital Markets
Any hints on how much or do you plan to receive early for the '08 merchandise in December quarter?
Mike Marchetti
We expect to be on inventory plan at the end of the quarter. We expect all of the expenses that we incurred extra in the quarter that just pass to be reversed.
Laura Richardson - BB&T Capital Markets
Did Elizabeth specifically call out those expenses or just say it was a factor in that big SG&A increase?
Elizabeth Schroeder
It was a factor in the increase.
Laura Richardson - BB&T Capital Markets
Excuse my ignorance, but should I know what the inventory plan is for the end of Q2?
Kathleen Mason
Our plan is slightly higher than last year, but in keeping with the sales that we expect to generate for fourth quarter. So, it's not up substantially but it's up slightly from last year.
Laura Richardson - BB&T Capital Markets
That helps. Can you talk specifically about the seasonal component of the buy? I think over the last couple of years you have been basically buying less per store. Is that true and is that continuing this year?
At least in my stores, there is still some '06 seasonal on the shelves being sold really cheap. So, how prevalent is that and how do you value that?
Kathleen Mason
I don't know what store you are in, but we really have what we see as no '06 merchandise on the shelf in terms of seasonal. I don't know if they found the box somewhere or what. But that really is not a factor in our inventory at this point in time. Seasonal was, don't forget, we were opportunistic.
We had opportunities to bring in some seasonal buys that we felt would give us a little better indication on the season, earlier. So, we moved those receipts forward and we had quite a few opportunities in this environment to do so. So it was a multi-category seasonal buy. It was a conscious decision to then go out and get as much seasonal as we could to get a longer period of sell through on it.
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