Overall February sales results were disappointing.

July was a transitional month as our brands continued to clear summer merchandise.

January was a clearance month. While customers responded to our brands' efforts to clear holiday merchandise, our merchandise margins were significantly below last year.

In February, traffic worsened versus fourth quarter trends, which caused lower unit sales velocity. This led to significantly lower merchandise margins. Looking ahead, we are focused on driving traffic with improved product and new marketing campaigns that begin this week.

August sales results were disappointing and merchandise margins were slightly below last year.

Positive customer response to holiday product assortments across all brands helped drive momentum in the month and enabled us to clear merchandise at better markdown margins.

While our merchandise margins were slightly lower than last year, our markdown margins were significantly better.