The customers are embracing the new fashion. The Urban customer is embracing it faster than the Anthropologie customer. The coast customers are responding slower to the new silhouettes, while in the metropolitan areas and particular New York that new fashion is already a factor in the market.

What are your comments on accessories?

The company considers that some of the problems in accessories are self inflicted. It has a new head merchant who made some mistakes. That is part of the business and the company is confident she has everything prepared for the fourth quarter.

What do you think a good fourth quarter tax rate would be?

The tax rate at the end of year to date is 36.7 million, not counting the historic tax credit on the renovation of the company’s new offices which was worth 4.4 million to its tax rate as a reduction to taxes. The actual tax rate on Urban Outfitters statement would be lower than 36.7 million, because of the 4.4 million. The company has added additional credit coming because it didn''t book it all in this quarter, because it had to spread it over the entire year. There should be another 2.9 million in fourth quarter.

Where did you end the quarter with the diluted share count?

The company ended at 168.3.

You talked about an inventory valuation reserve in the quarter. How did that impact the gross margin in the quarter?

The impact on the reserve was 100 basis points on the margin for the quarter. The company is conservative in its reserves and appropriately guides its inventory so the reserves are healthy.

What product category and what division was that valuation reserve in?

The company does not break it out by product category. The reserve was based on what the LCM required by all accounting techniques.

What are store target goals in the long terms?

In North America the company is looking for approximately 200 stores for Urban and 250 for Anthropologie. The company considers that it needs 50 stores in Europe and even more in Asia.

Anthropologie comparable store sales accelerated over a number of quarters before the new fashion trends came. Could you comment on that?

Anthropologie has an averaged 11 comp for three consecutive years with an average sales productivity of $800 a foot and an average net selling space of 7500 per store. Last year when the comp decelerated that was largely related to inventory management issues. In the third quarter of this year, the company started executing the fashion direction and the customers need more time to get used to it. Urban Outfitters has been comp positive 90% of the time since comps are reported and had double digit comp positive 65% of the time. That gives the company confidence about the concept across both brands and about Free People as well.

Would you share your view and plans on the share repurchase activity?

The company has repurchased shares to the tune of 1,050,000 in the third quarter. Urban Fitters continues to repurchase shares and it has the authority to repurchase up to 8 million.

Are you shopping some of the Scandinavian markets?

Urban outfitter opened an Urban store in Copenhagen and will open an Urban store in Stockholm on the 22nd of November. The company has a team in Scandinavia for both shopping purposes and visiting the stores.

What is the square footage for the divisions?

Square footage numbers are 988,444 for Urban, 162,172 for Anthropologie and 12,869 for Free People.