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#I think in this environment it gives us a great deal of flexibility in terms of what we can do and provides a solid foundation and security for the Company.
Obviously, you are also ---+ there may be ability to repatriate significant portions of that cash in the future.
And we have bought back stock through a plan to offset dilution, as well as continue to pay a dividend.
Okay, Matt.
I will address a little bit of that and just a little clarification.
As I mentioned in my comments, the cost savings initiative will predominately impact the first quarter with the remainder happening throughout the rest of the year as far as the charge goes.
We will identify that in our first-quarter results as well as throughout the year and identify the amounts to you.
It is predominantly in our operating expenses.
It will be a little in gross margin, a little bit in our ---+ the remainder being in OpEx.
And the annualized number is $15 million.
The number for this year, the savings would be $12 million.
And since we've just kicked it off now, being March, you're going to have a partial impact in this first quarter with the remainder happening throughout the year as far as the savings impacting favorably to the P&L.
I think inventories have been declining and you're seeing that and especially since for us our year-end is in January and retailers use that period of time to bring down their inventory and continue to focus on that in Q1.
What we are very pleased with is that the quality of our inventory, both our own and in the marketplace, is of excellent quality and that's something we always focus on.
We don't have a big role in those other off-price retailers and I think that's a fairly segmented business, so I wouldn't ---+ we don't really particularly know that.
But we were very pleased with our trend in the fourth quarter in our own outlet store, especially given the fact that traffic continued to be down.
But when people came into the mall and came into our stores they bought watches, which further affirms to us the fact that the consumers continue to be interested in nice watches.
I think we have done that in the past, so we are not averse to it.
I think in Q4 we generally have bought more stock back I think in the first half of the year generally than in the second half of the year.
<UNK>, I will try to address a little bit and perhaps someone would want to add a little color.
We do have some seasonality to our gross margin.
Our gross margin in the fourth quarter is historically lower.
We have a certain amount of fixed cost, [for instance], so in a smaller quarter, which the fourth quarter is one of them, it's hard to leverage some those costs.
If you go back and look perhaps two years ago, we are right in line with where we were.
We were not highly promotional so the decrease was a function of mix of where it's selling and what's selling and so forth, but we are not in a highly-promotional situation as perhaps maybe some other people are.
And I think just to add to Sally's, it's basically, we believe, directly related to volume.
So the fact that replenishments were lower in January would certainly have an effect on our gross margin and mix and being able to leverage the fixed production costs in that.
Some of our cost cuts are also in the gross margin area as well.
Yes, that's fine, that's fair.
I would like to thank all of you for participating on today's call.
We look forward to talking to you during our first-quarter conference call.
Thank you again.
