On the tax side nearly this year the company will end up some where between 37.5% and 38%, although an unusual reduction in the third and fourth quarter due to the credit coming form the Philadelphia navy.

What was the square footage growth during the quarter?

In terms of the square footage Urban ended with 947,232, that’s slightly up from you might expect as the company did three expansions during the quarter. Anthropologie was 631,059 and Free People was 11,060.

The Rockfellers store was your best opening ever. Does that suggest other opportunities in other cities to do something similar?

The company has spoken before about the Jacksonville Store and that store is above planning and continues to run above plan and significantly above company’s four other stores and there is a lot of new design prints for those that Urban Outfitters put into effect in that store. The company took more design risk in that store than it did in the Rockefeller Center.

On the new store productivity front, the mix is about 60% of the stores are street related around, 24% mall and about 16% would fall in the life style and most productive category remains the street followed by life style and mall. Two of company’s most recent openings were a street opening and a lifestyle opening that are about 30 minutes part drive time and they have to be in California.

Could you talk more about the email marketing efforts and perhaps the other things you might want to get involve with?

The penetration has led to total runs any where below 80’s to below 90’s in any given week and the non-catalog website sales are right now about 35% of a total direct business.

How is negative free cash flow position progressing on the cost side in the second half?

That will depend on sales and earnings in the second half but the reason the cash dropped the end of second quarter from first quarter were the expenditures of new offices. Now there wasn''t an overrun and which is about $50 million this year of spending that is unusual and won''t be repeated next year. It’s one-time frame. Maybe the next three years after this one probably can generate in the neighborhood of $500 million of free cash and that’s continuing to build 35 to 40 stores a year.

The company’s comment about trying to achieve positive comp in six months is meant to do just that. The company tries everyday to deliver positive comp and it will continue to do that. The company internally feels that the third quarter might not get there and the company has better soft to get there in the fourth quarter.

Can you talk about the aging of inventory this year versus last year by classification?

The company doesn’t give specific on aging, the fact that the company was 13% below last year in dollars it was actually about 20% below last year in units. It would be safe to assume that the inventory is clean. The general comment is the company doesn’t give up information about on a consistent basis; it doesn’t give it up about specific brands or specific classification.

Have you seen specific categories work in the U.S. as well as in the U.K. stores?

The U.K. stores have been rather turbulent in the first half of the year, many of the similarities that, season in, season out, the company has served in their business, occurring in hours, is being born out there. Their women''s business is good, but their men’s business is outstanding, driving it was really excessive sales. There are some categories in women’s that are difficult there just as they have been difficultly here.

Was productivity wise in most stores less productive than street locations?

The company has stores that exist in close proximity to college and university Urban Outfitters tries to look at how they perform. Up until the past year or so it’s not like the company had shed higher penetration really in the mall stores to register on the scale. Urban Outfitters is at all about 20 stores now that remains closed mall. The story is it’s a little shorter business that is more established and have been in market with high concentration of traffic flow. The traffic flow that exist in some of the company’s strong Urban markets whether that’s Union Square in San Francisco all of the stores in the New York City which would fall into the street bucket compared that to a regional mall that in some instances a remerchandised opportunity that took advantage of. The street location could initially be carrying more productivity simply based on the customers that used to shopping there.

What are the opportunities that are expected to improve the home business? The Anthropologie cannot improve in third quarter or is that more of a fourth quarter event?

The home business in first quarter was positive. Second quarter’s first two months were positive and the company did get heard in the last months and that was inventory related and it was inventory related in two ways. Urban Outfitters had web cast going in the year ago and missed some policy better coming in now. Based on the first two quarters the company would expect that the home business is healthy and it will continue to be. Given the penetration in the second half of the year to the total business from a branding point of view it''s important from a business point of view the company needs the women''s clothing business to kick up back into high single low double-digit sales.

The performance on home is better than the total company and if they were mid-single digit negative in the quarter. It''s performing as planned. The company has tightened home real estate in stores on a consistent basis. Home will have a presence in all stores that Urban Outfitters operates.