Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Paul Lejuez - Credit Suisse.
Paul Lejuez - Credit Suisse
Just wondering how far out you’ve already placed orders for your inventory, or have you already placed orders for fall.
And on the direct business, just wondering if you can talk about how you’re planning circulation throughout the year in terms of number of catalogues versus 2008, the breadth of distribution, and the number of pages.
James S. Scully
In terms of inventory purchases, we are bought for Q3 at this point.
And turning to circulation, we finished last year down 3% in circulation. And this year we were planning Q4 down 10% and it came in down 18% in Q4. As we have said, we are constantly testing our efforts in circulation, and in Q3 and in Q4 we completed some important tests and we are very pleased with the results so we’re going to implement these in 2009. So these efforts, I think, will allow us to keep circulation and trend consistent with where we were in Q4, which is down 18% for the year, and I think we will continue to give you updates throughout the year as we go forward.
Paul Lejuez - Credit Suisse
And when you say circulation you’re talking number of catalogues mailed?
James S. Scully
I’m talking pages circulated.
Paul Lejuez - Credit Suisse
Total pages?
James S. Scully
Yes.
Paul Lejuez - Credit Suisse
And on that inventory, your answer there, so are we to assume that you’ve bought third quarter inventory down in line with where comps are currently running?
James S. Scully
What we’ve said so far, is what we said in my prepared remarks, which was at the end of Q1 we will see inventory per square foot up consistent with where we were at the end of Q4. At the end of Q2 you will see inventory per square foot consistent or aligned with where we see the sales are today. So the answer to your question is yes, at the end of Q2.
Operator
Your next question comes from Kimberly Greenberger – Citigroup.
Kimberly Greenberger - Citigroup
I was hoping you could address your pricing strategy for this year. Any efforts to maybe fortify your opening price points in the assortment, and when should we see that fully reflected.
And are there any required debt payments in 2009, since you were prepaying last year.
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