Again that is a reflection of the strong controls and very strong corporate controls as well. They continued to leverage in the payroll and advertising expenses and they are pleased with their ability to control these expenses in light of the record 24 stores they opened during the quarter. This really reflects the maturation of the young base of stores, the leveraging of their store operating expenses and selling expenses over the sales volume last year. That was offset by the effects of implementing a number of new initiatives that are in the early stages of their growth cycle. That leaves them with one of the strongest balance sheets in retail.
Inventories are extremely clean getting ready for the all-important holiday selling season.
One particular note, they are keeping an eye on what's been going on in the computer industry. They have been playing it pretty close to the vest with computer inventories. TAX RATE . The third quarter of the year tends to be one of the busiest because of the heavy back to school selling season. As a result, they tend to keep their remodels to a minimum so they can focus on taking care of their customers.