Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Christine Chen – Needham & Company.
Christine Chen – Needham & Company
I was wondering as you look ahead to the back to school season in comparing last year what do you think some of the merchandise opportunities are?
Sally Frame Kasaks
We are looking at a number of things. Certainly as we have called out denim has been a strong part of our business and I think most of us in the teen space shall we say, or in the youth market, are seeing this is happening. So I think you can count on our denim assortments continuing to increase. I think you are also going to see both in young men and juniors [the same] assortments that we had last year and we have been testing and trying some new things in product categories. So you will see some newness within our stores in both genders.
Certainly in the young men’s business printable tees continues to grow and were grossly under penetrated on that last year. So we do see some opportunities essentially in denim and tops which is the teen uniform. On top of that we have seen some good fashion direction that we can build on.
Christine Chen – Needham & Company
As far as color palette do you see any changes there? Are we moving away from color into a darker palette or do you think color is still going to be important?
Sally Frame Kasaks
Color will be important but it is going to be interpreted in a different way and regardless of whether it is denim or plaids there is going to be color within the assortments because it does tend to lift and there will certainly be a cast to it that will be more appropriate for late summer and fall transitional colors.
Operator
The next question comes from Liz Dunn – Thomas Weisel Partners, LLC.
Liz Dunn – Thomas Weisel Partners, LLC
I think you mentioned that you were expecting to need to mark down spring goods to clear them to prepare for fall. Is that any shift in timing of the promotions? Did anything shift from Q1 to Q2? I was also curious about your outlook, just an updated outlook for cash for both the end of the second quarter and for the year end?
Sally Frame Kasaks
Mike why don’t you speak to cash and then I will go back to the other?
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