"We're finding that landlords are much more willing to makeconcessions than they were a year ago," Smith said. "We havealready made progress and started to achieve significant rentalreductions, and we intend to continue to do so."

The company now plans to close between 25 and 30 stores thisyear. However, store closings are not the main goal right now.

"As we've been doing for the last year, we're going to belooking at every single lease, every single opportunity," said CaryTurner, EVP and CFO. "Our best solution would be to close zerostores, as we negotiate with our landlords. But right now, we don'thave a definite number of what that would be."

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