Net loss for the thirteen week fourth quarter was $715,000, or ($0.19) per basic share, compared to net earnings of $1.0 million, or $0.27 per diluted share, in the fourteen week fourth quarter of the prior fiscal year. Earnings were impacted by a one time charge of $1.3 million for the Company's Store Transformation Project which will be completed in June 2009. Net sales from continuing operations, excluding the Company's two fuel centers, for the fourth quarter increased 2.0% to $138.5 million, on an adjusted thirteen week period for the fourth quarter of the prior fiscal year.

Adjusted same-store sales decreased 3.3%, excluding the Company's two fuel centers, improving from the 6.3% decrease in the third quarter. Improvements in our new merchandising and operational programs drove favorable results in a weakening macro environment. Both margin and expense investments were required in fiscal 2009 as the Company pursued its turnaround program. That program achieved significant expense reductions which positively impacted the quarter's results.

Gross margin for the fourth quarter was 29.7%, down from 30.3% in the fourth quarter of the prior year. Contributing to the decline were accelerated markdowns which resulted in a cleaner inventory position than the previous year and lower new store allowances as the Company opened fewer stores in the quarter compared to the previous year, offset by continued shrink improvement and increased vendor rebates

The .6 reduction in gross margins for the 4th qtr represents $ 800,000.
Considering the shell shock of this last year at Christmas thing could have been a lot worse.. don
what are your thoughts.