Good morning ladies and gentlemen and welcome to the DXLG Fourth Quarter Fiscal 2013 Earnings conference call. Today’s call is being recorded. At this time, I would like to turn the conference over to Mr. Jeff Unger. Please go ahead, sir.

Thank you. Good morning everyone and thank you for joining us today for Destination XL Group’s Fourth Quarter and Fiscal 2013 conference call. On our call today is David Levin, our President and Chief Executive Officer, and John Kyees, our interim Chief Financial Officer. During today’s call, we will discuss some non-GAAP metrics to provide investors with useful information about our financial performance. Please refer to our earnings release, which was filed this morning and is available on our website at investor.destinationxl.com for an explanation and reconciliation of such measures. Today’s discussion also contains certain forward-looking statements concerning the company’s operations, performance and financial condition, including sales, expenses, gross margin, capital expenditures, earnings per share, store openings and closings, and other such matters. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those assumptions mentioned today due to a variety of factors that affect the company. Information regarding risks and uncertainties are detailed in the company’s filings with the Securities and Exchange Commission. Now I’d like to turn the call over to our President and CEO, David Levin.

Thank you, Jeff, and good morning everyone. Before I jump into the results, I’d like to mention that I am here with John Kyees, our interim Chief Financial Officer. John has served on our board of directors since 2010 and was CFO of Urban Outfitters from 2003 until his retirement in 2010. He’s also served as a senior financial executive of several other prominent retailers, and John will play a valuable role on our senior management team while we conduct a search for a permanent CFO. As you know from our preliminary results announcement in January, much like the majority of the retail industry, the fourth quarter was a challenging one for DXL. At the same time, we continued to be pleased with the performance of our DXL stores. I’ll be discussing some very positive data from our most recent DXL marketing campaign and an update about our DXL rollout strategy on today’s call. First let me recap the results for the quarter. A few factors negatively affected Q4 sales of $108.5 million, which were lower than we had expected at the end of Q3. First during the key selling weeks between Black Friday and Christmas, store traffic was down approximately 4% from the prior year. Adverse weather conditions in some geographies also kept people from shopping. Nonetheless, we are pleased to report the same store sales for the 48 DXL stores opened greater than a year increased 13.6% and 12.3% for the fourth quarter and fiscal year 2013 respectively. In total, our comparable sales for the fourth quarter and full year increased 4.2% and 3% respectively in the prior year periods. In September, we launched our fall marketing campaigns for DXL. This time around, our ad campaign aired on network television to supplement our nationwide presence on cable, which…

Thank you, David, and good morning to everyone. I’m delighted to be back in the saddle and look forward to working with David during this transition period. As you know, I served on the board for more than three years and I’m deeply committed to and supportive of the company’s strategy. I’ll start by highlighting the company’s results and then provide some context around our guidance for fiscal ’14. For the quarter, total sales were $108.5 million compared with $114.9 million for the prior year’s fourth quarter. The decrease of $6.4 million in total sales was principally due to the challenging retail environment, shorter holiday selling season, and adverse weather conditions in certain regions. In addition, the fourth quarter of 2012 contained an extra week, which contributed approximately $5.9 million of sales in that period. Furthermore, we experienced a decrease in the quarter of $4.5 million related to lost sales from our Casual Male Xl and Rochester clothing stores that have closed since last year and have not been replaced with a DXL store. These factors were partially offset by a comparable sales increase of 4.2% or $4.3 million. Let me briefly define what we mean by comparable sales. Total comparable sales for all periods include retail stores that have been open for at least one full year. Stores that have been remodeled, expanded or relocated during this period are also included in determining comparable sales. Most DXL stores are considered relocations and are comparable to all closed stores in each respective market; therefore, those DXL stores are considered a comparable store upon opening. Direct businesses are also included in the calculation of comparable sales since we are a multi-channel retailer. Going forward, due to a significant number of DXL stores that now have been open for more than a…

Thank you sir. [Operator instructions] We will take our first question from Thomas Filandro from Susquehanna Financial Group. Thomas Filandro – Susquehanna: Hi, thanks. Nice to see you’re involved with the day-to-day, John, so, so much for retirement. David, a quick question for you – on the accelerated traffic impact that you experienced from the advertising campaign, and then you did not experience it though December, are you guys planning on any adjustments to the timing and/or shifting of dollars in the way you’re advertising for the second half? And then my second question is more related to John – can you just be clear on exactly when you anniversaried cutting the catalog mailings, and how should we think about normalized direct channel growth on an apples-to-apples basis, please? Thank you.

Okay, in respect to the timing of the marketing, yes, we’re smoothing that out and what we’re doing is we still have two major television campaigns going on in the spring and in the fall, but what we’re doing is we’re adding radio in extended periods of time to smooth out some of those bumps that we get when we have the commercial running. So we have addressed it, so we’ll be running our commercial through December where this year we ended it November 15. Thomas Filandro – Susquehanna: Okay, excellent. Thank you.

In terms, Tom, of the quarter catalog, it stopped in the end of second quarter of 2013, so we have—once we get to third quarter, we won’t be against any catalog business. Thomas Filandro – Susquehanna: Do we have sort of a view of a normalized rate of growth that we should think about for the catalog—I mean, I’m sorry, not for catalog, for the direct channel?

Right now, we’re assuming high single to low double digit increases. Thomas Filandro – Susquehanna: Okay, excellent. Thank you very much. Best of luck to you all. Thank you.

We’ll move next to Laura Champine from Canaccord. Laura Champine – Canaccord Genuity: Good morning, and good to be able to chat with you again, John. Just wondering what the change in timing of the transition does to your long-term objectives, and if you can give us a sense of where those stand today.

Hi Laura, good to talk with you as well. I’ve missed a lot of you folks, so good to have a chat. The potential of the long-term still remains the same, it just gets pushed out a little bit. It probably does a wonderful job in terms of protecting our liquidity during that period of time, and it definitely will improve our store real estate choices and our timing on our real estate decisions, so I’m really very pleased with this approach. I think it gives us much more confidence in the DXL concept being a success. Laura Champine – Canaccord Genuity: Got it. Thank you.

Once again, I would like to remind our audience it is star, one if you have a question or a comment. We’ll move next to Mark Montagna from Avondale Partners. Mark Montagna – Avondale Partners: Hi. Just to follow up on the radio question, how many weeks of the year do you plan on being on TV this year versus last year, and then how many weeks of radio, and then are the radio ads—it sounds like they’re going to run also with the concurrent with the TV ads. I just want to verify that.

Yeah, the television, we haven’t finalized the fall run yet, but we’re going to be pretty much anniversarying what we did in 2013 so we’re talking about 12, 13 weeks of television that will also have the radio going on at the same time. And then, we’re going to be extending out several more weeks on the radio, mostly in the back half of the year, to get where our business is much stronger, and we do want to penetrate into that holiday period where we stopped advertising, again as I said, around the middle of November this year. Mark Montagna – Avondale Partners: Okay. I would imagine that you guys obviously got hit pretty hard with the weather. Can you help us understand how many partial closed days or full closed days you had? Did that decrease potential days by a couple percentage points?

Oh absolutely, and I know some retailers are giving number of closing days. We didn’t add it up, but I know one day we had 85 stores closed in one day and we probably had another 50 that did less than $100, so we were severely impacted by the weather, as most retailers were. But on a positive note, what we’re hearing about first quarter has been pretty dismal out there at retail, and actually we’re pretty pleased with our first quarter business. Our DXL store comps are still close to double digit and in total company we’re up in the mid single digits, which is actually higher than we were in Q4. So again, I think weather has been the enemy of all of us, but wherever we’ve seen weather, decent weather, we’re confident; in fact, we zone out our businesses by geography and our southern tropical store comps are running at 10% better than the Midwest and the north, so we’re confident that it’s weather and we’re also feeling very good about the early reads on our spring product. Again, we could look to Florida and we could look at some of those markets, and the checkout of our spring receipts has been quite good. Mark Montagna – Avondale Partners: When you’re saying DXL store comps are running close to double digits, this is based on your new methodology industry standard for comps—

Yes, this would be stores open greater than a year. Mark Montagna – Avondale Partners: Okay, that’s good. Then I might have missed this, but did you say whether traffic had improved following the ad campaign?

Yes. Traffic did improve, but again once we hit December, we lost traffic; and again, I think that was relative to everybody else having traffic problems in the month of December and January. But our traffic while we were running the commercial was plus-10%, which was a dramatic swing from what we’ve been seeing. Again, traffic has not been the driver for the DXL stores as much as it’s been average ticket, but what we’re currently seeing is we’re seeing that starting to balance out where traffic and dollar per transaction are equalizing themselves, which is a much healthier position for us. Mark Montagna – Avondale Partners: Okay. Then how about web traffic following this campaign, because I think last spring it did increase, but did this show a better increase in the web traffic?

It was very similar. We get a big boost in traffic when the TV commercial is running. Conversion comes down somewhat because there’s a lot of just curiosity going into the website, but as we mentioned previously, our web business, our internet business traffic, sales has been much stronger in the last four months than it was in the prior—earlier in the year, and we’re very pleased with that. Again, we’re starting to cycle through finishing up going against catalog. We’re up against it for this quarter and next quarter, but we’re already seeing a significant shift in the top line sales of our internet business as the internet continues to dominate and the catalog becomes less significant to us. Mark Montagna – Avondale Partners: Okay, and then when you were talking about smaller market stores, are these markets that you had previously not considered or—and then do you have—

That’s a very good question. Some of them were on the bubble. We couldn’t seem to rationalize. Some we said, well, we need to be in that market; but with this new model, again, where we’re looking for stores to come up to do $1.5 million, $2 million, we could rationalize going into these smaller markets and at $1 million we could make four-wall profitability that’s similar to the bigger boxes. This is a big move for us. We were able to maintain the DNA and the integrity of the bigger stores. The look and feel is going to be the same. Customers walking in for the first time will be wowed as much as they were in the previous locations. We’ve made some cosmetic moves that the customer should not see – you know, taking down degraded carpeting, not putting in the expensive light fixture packages, less registers, one less dressing room. But it really brings down our CAPEX for the year dramatically, so for the stores opening this year compared to last year, on average they’re 1,000 square feet less, which will equate to over $1 million just in rent savings alone. Mark Montagna – Avondale Partners: Okay. But these stores that you’re opening this year, are any of these in the smaller markets?

Yes, we’ll be opening probably five to 10 of our 40 stores will be in the smaller box in the smaller markets. And just to give you a few examples that we have lined up: Temecula, California, Lafayette, Louisiana, Springfield, Illinois – again, a lot of these markets were on the bubble with the old format, and now we could certainly rationalize to get the pro forma to be where we want it to be so these stores will eventually have 25 to 30% four-wall profitability when they mature. Mark Montagna – Avondale Partners: That’s good. What about in the larger markets with stores, like if you have stores in New Jersey, Nashville – are those stores going to be smaller?

Yeah, again—you know, the average store was 8,000 to 9,000 square feet last year, and we’re tightening it up. We’re now 7,000 to 8,000 square feet. Every square foot helps us in the end. It helps our sales per square foot, certainly. It helps our CAPEX build-out. It helps on our occupancy cost, so we’ve been tightening it up from the early prototype when we started at close to 12,000. We went to 10, to 9, and now we could make—we could fit everything we need into 7,500 square feet. Then, it becomes a matter of the market depth, but we’re not going to be opening up stores that are more than 9,000 square feet going forward unless it’s a flagship-type operation. Mark Montagna – Avondale Partners: Right, so you can do a store that’s 7,500 square feet. Is that 7,500 in the major markets and then the smaller markets, maybe it’s 6,500?

Yeah, well in the smaller markets, we’re going to ratchet it down to 5,000 square feet where we can, so that is a significant difference from 7,500 to 8,000. But again, because we’re not going from a build-up real estate market where there’s a lot of new real estate, we’re going into a lot of buildings that have been previously occupied, so we can’t always control what it’s going to be. So some are 7,500, some are 8,500; it’s what the landlord can carve out for us in the right place. But again, 7,500, 8,000 square feet, that seems to be the magic number. Mark Montagna – Avondale Partners: And then last question just dealing with—

Mark? Mark Montagna – Avondale Partners: Yes?

Can you let someone else and just come back, please, because we’ve got a bunch of people who’d like— Mark Montagna – Avondale Partners: Oh sure, yeah. I’ll jump back in. Thanks.

We’ll move next to Chris Krueger from Lake Street Capital Markets. Chris Krueger – Lake Street Capital: Good morning. Just a quick couple questions. First on your advertising campaign, I know it’s been kind of in the periods leading up to Father’s Day and the October-November NFL football season. Looking beyond this coming year, are there are any other times of the year that you’re sort of targeting longer term to potentially add into that, whether it’d be—first thing that comes to mind if NFL playoffs or March Madness for NCAA basketball.

No. Again, we have—obviously we have a budget to adhere to, and we’re spending about the same amount of money we had last year to get the right balance of weight of viewership and all those things. We do have to concentrate. If we spread ourselves too thin, it loses its impact. But again, we look at the key selling periods. There is a dramatic difference in our business in Q2 and Q4 versus at the end of Q3, so our guy’s really not out there shopping in force really until Memorial Day – that’s when our business starts to spike. It would be difficult for us to change that behavior, so we would be spending quite a bit of money and not getting the bang for our buck. So we’re hitting it up when the most opportune periods are for us right now. Chris Krueger – Lake Street Capital: Okay. Currently in your newer DXL markets, do you have a pretty good handle on tracking the conversion of Casual Male customers who have converted to DXL through your databases, and how that is trending?

Yeah, that we know to the customer. We do track that customer, and again we know a lot about them today. Obviously we’re going to get the highest conversion where the store stays very close to its Casual Male base. The further we move the store – for example, if we move the store 15 miles, we’re going to get less conversion, and that’s what—our number one priority is to increase that conversion rate, and what we are doing a lot more than we’ve ever done in the past. Today, the day we sign a lease in a market, we put that store into the marketing campaign where we bring in video monitors behind the registers to talk about the new store, we give them DXL shopping bags, and we start getting them prepped. One of the problems we had in the past was that we were doing this two months prior to the store closing. Well, if the customer only shops two times a year, there’s four months of customers that had no idea that Casual Male was going away and DXL was coming. Now, we have a better opportunity and a very big, important play by extending these Casual Male stores openings is going to give us a lot more opportunity to tell that customer where the DXL store is going, and we’re very excited about that. Again, these store people are going to be ambassadors to the DXL world. Chris Krueger – Lake Street Capital: Okay. Last question – what was your stock-based compensation expense for the fourth quarter?

I’ll get back to you on that. Chris Krueger – Lake Street Capital: Okay, thanks. That’s all I’ve got.

We’ll hear next from Charles Bellows from White Pine Capital. Charles Bellows – White Pine Capital: Yeah, sort of a tag-on to Chris`- what is merchandise strategy for the Casual Males that you keep open, and how is that differentiated from the DXLG?

Well, Casual Male stores are going to continue with the balance of inventory that they’ve always had. We’re not going to be putting in more brands into those stores. They operate at high margins because it’s almost all private label, and we don’t see any adjustments to that. Again, what’s encouraging to us is we haven’t seen the anticipated deterioration of these Casual Male stores that we thought was going to happen, and they do kick up a lot of cash for us. Most of these stores are 20, 25 years old, so (audio interference) and they have a nice contribution for us. So we don’t really see anything changing, and for us from an expense point of view, from here it’s just another store number to our planning and allocation and buying group, so we don’t have any special group that’s operating the Casual Male stores versus the DXL stores. It’s all the same group and they treat it as a different store number and have a specific assortment out of the total assortment of the DXL product that they get to offer. Charles Bellows – White Pine Capital: Okay, so it goes just to a transition to the DXL store but just over a longer period of time?

Correct, and again, we were aggressive in trying to accelerate this, and we are taking significant lease write-offs to get these DXL stores open, and we’ve been working with our landlords now, going back to them, getting extensions on our existing leases and taking it out another year or two to utilize all that cash that’s generated. Charles Bellows – White Pine Capital: Okay, great. Any new brands, or are you pretty well set with your brands that are in DXL?

We are so pleased with what we’ve accomplished with the brands. We’re kind of scratching our heads if there’s any—we don’t really see anything else out there that we really need in our assortment. We do have specialty smaller market brands, a brand like Psycho Bunny. It’s a young men’s brand. It does extremely well in certain markets, but that’s certainly not going to be an all-store brand for us. We’re feeling very comfortable and we like the result of what we’ve seen with Brooks Brothers – it’s been excellent, and we’ve had the sportswear line in and now the dress line, the clothing coming in from Brooks Brothers. We’ve just brought in Adidas Golf, and that looks very strong. We’ve only had a few weeks’ sales, but very pleased to have another brand in the golf area, which is one of our strongest growth categories. Charles Bellows – White Pine Capital: Okay, perfect. Thank you.

Moving next to Mark Garfinkel from Perimeter Capital Management. Mark Garfinkel – Perimeter Capital Management: Hello David, how are you this morning?

Good. Mark Garfinkel – Perimeter Capital Management: A couple of questions. Let me start off kind of one at a time. I was wondering if you might be able to provide any additional metrics or commentary surrounding your inroads into the end-of-rack customer since that is such an important part of the long-term growth story here.

Yeah, well again, there we’re very pleased. We were—yeah, John has some numbers (indiscernible).

Yes. In the fourth quarter, for instance, end-of-rack customers hit 43% versus 38% a year ago, and for the full year it was 40 versus 36. So you can see quarter-by-quarter, we’re gaining ground and we’re gaining against last year. So while we think it could be better, we’re pleased with the progress we’re making. Mark Garfinkel – Perimeter Capital Management: Can you characterize the percentage of your customers that are coming in? If you’re seeing such large inroads to the end-of-rack customers, how is that impacting or how does that jive with your overall traffic count?

Well, we can’t connect one from the other. We can’t connect traffic to what the size of the customer is, but obviously it’s being driven by the new (indiscernible) customers because if we’re getting the increase, it’s not coming from our existing customers. So I think our marketing, I think word of mouth is resonating out there with this guy who is 42 to 46. Anecdotally from everything I’ve seen when I’m in the stores, he is excited because he’s finally found a place to shop and he’s enamored by the breadth of selection and certainly some of the brands that we carry. They’re pretty amazed that we have those cache brands in big and tall sizes. So we continue to increase that penetration and adding more inventory into those sizes, and again it’s having a brand like True Religion – there you’re going to find certainly selling more to the left. It’s a pricey pair of jeans, but it’s got a lot of name brand behind it, and those types of brands we’re going to definitely see a bigger swing to the left. Mark Garfinkel – Perimeter Capital Management: Okay. My next question would be you made some—in your prepared remarks, you talked a little bit about the Casual Male stores kind of helping with the transition or being an ambassador, if you will. I know that you have talked in the past about there being a little bit of a problem on the transition when you were closing DXLs and opening, just kind of not there being kind of that link between the Casual Male and the DXL store in the same market. So how much have you seen—where you have already been doing this, leaving a store open, how much have you seen this help? Do you have any additional commentary that you can provide as to how that may already be working if you’re already doing that?

This is relatively new, and we’re measuring that now. I think we’ll be able to talk to that on the Q1 call, but we don’t have enough information on your question at this point in time. We’re obviously very focused on it and measuring everything we can to look for improvement.

I think one thing to think about on it is a guy typically doesn’t shop a lot. He may shop a couple times a year, and if you close the Casual Male store, even though you’ve told him on his last shopping visit that three months from now you’re going to open a DXL store, he isn’t going to remember that six months down the line. So this opportunity of saying—you know, he’s shopping in a Casual Male store and the DXL store is already open and you can guide him to that DXL store, there’s a tremendous opportunity in making the conversion a real thing. Mark Garfinkel – Perimeter Capital Management: I think that will be very helpful. Hey, thanks a lot, guys.

As a reminder, it is star, one if you have a question or comment. We’ll go back to a follow-up from Mark Montagna from Avondale Partners. Mark Montagna – Avondale Partners: Hi. Just a question on inventory. Wondering how much you would see perhaps reducing per-store inventory of a DXL that if you planned to reduce it for stores that have been open for a year to try to boost store productivity.

Again, we’ve never been the highest priority on inventory turns because we just have so many sizes that we have to manage. Those of you who know, where a regular size store has 18 size combinations in bottoms, we have 55 size combinations. It’s imperative that we keep our inventory in stock, and again in our core programs we’re about 95% in stock. So we do carry—that is the burden we have to face. We do have to carry inventory. The good news is it’s not perishable inventory. It’s manageable – we move that inventory in and out every month with the manufacturers, so we manage that. Again, for those of you who have followed us for many years, we’ve never had an inventory issue. The units will continue to come down over time as brands become more prominent with a significant price difference, but the dollars will probably stay in the same range, very close to the same.

As we push a little bit farther with the store net program, which allows us to pull items from different stores, it is an opportunity to potentially reduce inventory; but right now, we wouldn’t want to do that. We want to give the customer the best experience possible in a new concept DXL store. But I just had a personal experience shopping with my son last week and he was looking for a shirt that—I think it was like an 18 neck and a 38-inch sleeve, and in that particular color they didn’t have it in the store we were in, but they were able to just go online at the store, order it and have it delivered to the store in three days. So it does work for us. We’re still feeling our way on this whole program.

John brought up a good point because he said a word that we haven’t really discussed before, and that’s store net, and this has been a project that’s been going on for close to a year but we are live with it right now. It’s similar to what Nordstrom’s has in place and what Macy’s is working towards. On the internet, the inventory availability only came from our warehouse, so when the warehouse would sell out of an item, it would be out of stock and gone. Today, every store’s inventory in the DXL world is part of the inventory, so if we’re out of a specific item in the warehouse, it will move to the closest store to that customer who may have that item. What’s very encouraging is a strong percentage of these transactions that have taken place in the last month are in clearance items, which is items that we tend to be broken up on and have more chance that we don’t have them in the warehouse. And boy, if we can move clearance at an accelerated pace, that just saves us a lot of money on our markdowns and improves our gross margin. Mark Montagna – Avondale Partners: Okay, that is very helpful. Thank you.

Bernard Sosnick from Gilford Securities, your line is open. Bernard Sosnick – Gilford Securities: Good morning. Could you provide a little bit of coloration, please, with regard to accounts payable? The size of the increase caught my eye and I’m wondering what’s responsible for that.

That would simply be timing. It’s nothing other than delivering of inventory and the timing related to those deliveries. Bernard Sosnick – Gilford Securities: So that you’re all current on your payables?

Yeah, we’re doing nothing (indiscernible) doing anything like that. Bernard Sosnick – Gilford Securities: All right, that’s encouraging. The other point – 2013 was expected to be a breakeven year, and I understand all the reasons that you didn’t make it. But since you’re pleased with DXL and since you’ve become more conservative with your expansion rate, and since some of the problems from Black Friday through the end of the year probably won’t be repeated in 2014, why are we still looking at a guidance number that’s negative for this year?

It’s a great question, and we obviously have looked at that a lot and tried to figure out how we ramp up the profit. But the real issue in our conversion from 2013 to 2014 is that we’re going to lose about $50 million of high profit sales from Casual Male as we close those stores. You know, the Casual Male stores, while they are not great for the future, their existence today is a highly profitable existence. They’re probably generating 20 to 25% four-wall income and cash flow, and most of them are almost fully depreciated. So we lose about $10 million in profits from closing those stores. Long-term it’s absolutely the right decision and we’re happy to do it, but short-term it does have ramifications. The other really is that we are going to lose probably $2 million due to a mix of private label and branded product as we shift the DXL business to a mix of private label and branded, where it’s a very different mix than what Casual Male was. The third thing is we’re going to incur another $1 million in additional interest expense as we expand—as we go between stores. We obviously have a CAPEX expenditure there to deal with, and all that is then offset by $80 million of additional DXL volume that is worth about $12 million of profit. So end result is kind of a wash, it’s just a painful wash in terms of looking at the numbers on a broad brush right now. Long-term, we absolutely think it’s the right thing to do and we feel very comfortable that we’ll turn a nice profit going forward.

Yeah Bernie, let me add one thing. We opened 25 stores in the fourth quarter, and a lot of them were late in the fourth quarter. Regardless of what stores we open in the DXL world, the first year we go backwards. We’re going to make less money in the DXL store in Year 1 than we did in the Casual Male store –that’s never going to change. The trick is the following year, we get double-digit comps and double-digit comps, and then we’re on our way, and around Year 2, Year 3 we hit the profitability that exceeds the Casual Male store. So we’re just very weighted when we opened half of the stores that we have today opened in the fourth quarter, so that’s going to be the snag, I think. But as we hit 2015, the weight of those stores becomes important and now they’re comping double digits, and they start to offset the Casual Male. That’s just the nature of shutting down a chain and rebuilding another one. We have just a lot of transition costs – the payroll, the pre-payroll, the opening, the training, all those things that take place in a major conversion like this. However, the key point is we are going to get to everybody’s expectations on earnings, it’s just pushed out a few more years than we originally thought. We were very aggressive on the operating—on the sales and operating income to take place in a few years, and we’re learning now that it’s just going to take us longer to get there But as John said, we’re confident that we are going to get there and it gives us the opportunity of the upside. These Casual Male stores that we’re doing $650,000 have been doing $650,000 for the last 10 years with no growth. The DXL stores that are doing $1.1 million, $1.2 million will do $1.7 million, $1.8 million given the five years to mature. So long-term we have tremendous upside where previously we had no opportunity to grow our market share and grow our top line. Bernard Sosnick – Gilford Securities: I really appreciate the explanation. Just one other thing – of the 40 stores scheduled to open this year, how many are on plan to open in the first half?

First half, I’m not sure. I think we had, like, six stores scheduled to open in the fourth quarter, and the balance of the stores will open during the year. The majority are in the first half, but there will be some third quarter stores.

Yeah, there’s a considerable amount in Q3, which is good for us. Going forward, we want to open stores ideally February-March and August-September. Those are going to be our optimal times because that’s when all the pressure pieces are coming in, so we’re gearing towards that. Bernard Sosnick – Gilford Securities: Thank you.

That does conclude our question and answer session. Mr. Levin, I’d like to turn the conference back over to you for any additional or closing remarks.

Okay, John did you--?

Yeah, I just wanted to provide the information on the stock-based compensation. It was $400,000.

Approximately 400?

Approximately $400,000, yes.

All right, so—

And one other thing I just wanted to comment on, that I think sometimes people miss. David pointed out on the potential of DXL and how strong it is and how we think it has tremendous future potential. I’ve been in retail a long time and I’ve not seen very many brands where the customer falls in love with it. Anthropologie was an example of that where the customer just was crazy about that brand, but the DXL customer is crazy about the brand. You get these unbelievable letters from customers saying they can’t believe how well they’re treated, they can’t believe the assortment, finally somebody has done something for the big and tall customer. I think that’s pretty unique and it gives us a great future.

Thank you, John, for those thoughts – that’s great. Thank you all for being on the call, and as always I’d like to end by inviting you all to visit one of our DXL stores, and give us a call if you’d like to inquire about a store location or would like a tour with management. On that note, we look forward to speaking with you next quarter. Bye.

That does conclude today’s teleconference. We thank you all for your participation.