Question-and-Answer Session
Operator
Thank you, sir. We will now begin the questionandanswer session. (Operator Instructions) Our first question comes from the line of Sean McGowan with Needham & Company.
Sean McGowan – Needham & Company
Thank you. A couple of quick housekeepingtype questions and then a bigger one. Barry, what do you think would be a helpful for useful tax rate to use for 2009?
Barry Emerson
I would use 38%.
Sean McGowan – Needham & Company
Regarding the timing of the store openings, are there commitments that you already had in place that might skew that opening schedule a little bit more at the beginning of the year than we might otherwise expect?
Steve Miller
No.
Sean McGowan – Needham & Company
We should expect it to be backend loaded?
Steve Miller
Reasonably backend loaded. No openings in the first quarter and then roll them out from there.
Sean McGowan – Needham & Company
Like a normal pattern, kind of?
Steve Miller
Basically normal, but take note we said there will be substantially fewer openings.
Sean McGowan – Needham & Company
Third area, then, managing the costs as well as you did in the fourth quarter there, was there anything in the fourth quarter of 2007 or 2008 that was unusual that might have skewed that or is that a straight comparison there that just says you managed to cut the absolute dollars? Was there anything that was unusually high in Q4 2007 or materially lower that would be a onetime item kind of thing?
Barry Emerson
Really not. There are costs going different directions, obviously, our occupancy costs are up and those kinds of things, but other than just trying to manage the cost structure really carefully, there isn't anything in particular. We've been continuing to benefit from favorable workers' comp experience. But that's just our internal management of those claims, and that would be the only thing that really jumps out at us.
Sean McGowan – Needham & Company
With that in mind, how should we look at 2009 then in terms of managing that same line? Should we be looking for flattish numbers there or modest, very slight increases or have you done what you can and there's going to be headwinds?
Barry Emerson
We're certainly not providing full year guidance at this point. We are going to continue the best we can to manage those costs appropriately given the business climate at the time. We're not giving full year guidance at this stage. It really does depend on our sales levels going forward.
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