Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Lorraine Hutchinson – Banc of America/Merrill Lynch
Lorraine Hutchinson – Banc of America/Merrill Lynch
Two questions please, first would you be able to quantify what comp you would need in order to be free cash flow positive in 2010 and second, you talked about getting incremental cost savings, I know you can’t provide details here but should we expect a similar magnitude reduction as the prior programs.
Cynthia Gordon
I’ll first comment on the comps, we believe we can be cash flow positive with single-digit negative comps in 2010. And as for the additional expense reductions, as we’ve said, we’ve identified $65 million plus a year ago, another $65 million this year for a total of $130 and as we continue financial rigor and the disciplines with everything that we do, we will continue to look for more reductions.
Operator
Your next question comes from the line of William Armstrong - CL King & Associates
William Armstrong - CL King & Associates
I guess for starters on the sales line can you break it down between traffic and average ticket as far as those trends went in the third quarter.
Cynthia Gordon
Yes, the most significant piece was traffic. The ticket was up slightly for the quarter.
William Armstrong - CL King & Associates
Okay, I know you can’t speak too specifically about the rent reductions, but just sort of generally are we looking at outright reductions in rent or perhaps restructuring the way it is to have a more variable component to the store rent through the year.
Cynthia Gordon
Again, its an entire portfolio review so both will play into it. There will be absolute reductions, in some stores there will be percent rent in stores that leads to reductions. There will be extensions. There will be, its an entire portfolio review. So everything is open for discussion.
Neal Goldberg
And again this is the first time we’ve ever taken this kind of stance of looking at it across the entire portfolio by our landlord and because of the amount of leases we have with each of them, it is a large undertaking and we think the partners we have in RCS and with the rigor that’s gone into it we will be happy to get back to everyone in the very short near term to discuss the results.
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