Good morning and welcome to the AutoZone conference call. Your lines have been placed on listen only until the question and answer session of the conference. Please be advised today’s call is being recorded. If you have any objections please disconnect at this time. This conference call will discuss AutoZone’s first quarter financial results. Bill Rhodes, the company’s Chairman, President and CEO will make a short presentation on the highlights of the quarter. The conference call will end promptly at 10:00 am Central Time, 11:00 am Eastern Time. Before Mr. Rhodes begins the company has requested that you listen to the following statement regarding forward looking statements.

Certain statements contained in this press release are forward-looking statements. Forward-looking statements typically use words such as believe, anticipate, should, intend, plan, will, expect, estimate, project, positions, strategy, and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties including without limitation credit market conditions, the impact of recessionary conditions, competition, product demand, the ability to hire and retain qualified employees, consumer debt levels, inflation, weather, raw material costs of our suppliers, energy prices, war and the prospect of war including terrorist activity, availability of consumer transportation, construction delays, access to available and feasible financing and changes in laws or regulations. Certain of these risks are discussed in more detail in the risk factors section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 28, 2010 and these risk factors should be read carefully.

Thank you. Mr. Rhodes, you may now begin.

Good morning and thank you for joining us today for AutoZone’s fiscal 2011 first quarter conference call. With me today are Bill Giles, Executive Vice President and Chief Financial Officer, Store Development and IT, and Brian Campbell, Vice President and Treasurer, Investor Relations and Tax. Regarding the first quarter, I hope you have had an opportunity to read our press release and to learn about the quarter’s results. If not, the press release along with slides complementing our comments today is available on our Web site, www.autozoneinc.com. Please click on quarterly earnings conference calls to see them. We are very pleased to announce a strong start to our fiscal year with an increase in EPS for the first quarter of 33.7% and a domestic same store sales increase of 9-1/2%. This marks the eighth consecutive quarter of EPS growth in excess of 20% and the 17th consecutive quarter of double digit EPS growth. Just eight weeks ago during our fourth quarter conference call we highlighted our operating theme for 2011, one team going the extra mile, and outlined the key elements in making that theme a reality. This morning we will update you on our progress on these initiatives and give some color on the opportunities and obstacles we may face for the balance of the year. Along the way we’ll address what we have learned. First I want to congratulate our entire organization on another very impressive performance in the first quarter. Our sales results accelerated this past quarter in both retail and commercial and a key contributor to that acceleration was the execution levels of our organization across the board. On both a two-year and three-year comp store stacked basis our trends accelerated and we continued to gain share in both commercial and retail in virtually every geographic…

Thanks Bill. Regarding the first quarter for the 12 weeks ended November 20th we reported sales of $1,792 million dollars, an increase of 12.7% from last year’s first quarter. Domestic same store sales or sales for stores open more than one year were up 9.5% for the quarter. We experienced strong sales growth from both our retail and commercial customers. Net income for the quarter was $172 million, an increase of 20.1% versus last year’s first quarter and diluted earnings per share increased 33.7% to $3.77 from $2.82 in the year ago quarter. Our continued disciplined capital management approach resulted in return on invested capital for the trailing four quarters of 28.6%. We have and will continue to make investments that we believe will generate returns that significantly exceed our cost of capital. Gross margin for the quarter was 50.7% of sales, up 33 basis points compared to last year’s first quarter. Improvement in gross margin was primarily attributable to an increased penetration of Duralast product offerings and lower acquisition costs. In regards to inflation and its impact on comp store sales performance, we have not experienced any significant impact. Although by category there have been some fluctuations, taken as a whole they have offset each other. We do not expect inflation to play a large role in same store sales for this fiscal year. However, we cannot be sure as commodity pricing is the main driver in this area. Thus far into the year inflation has not had a significant impact. Looking forward we continue to believe there remains opportunity for gross margin expansion. However, we do not manage a targeted gross margin percentage. Instead we are focused on growing absolute gross profit dollars. SG&A for the quarter was 33.6% of sales, down 37 basis points from last year’s…

Thank you Bill. Before we conclude I want to reiterate that our industry’s performance has been strong for the last couple of years. But I believe our team’s commitment to our culture and our customers combined with our initiatives have contributed significantly to our success as evidenced by our continuing growth in market share in both retail and commercial. We remain committed to continuing to improve our business model and our operations, continual refinements but frankly we are not making radical or high risk changes. We have an exceptional business model that still has tremendous opportunities for further improvements. For fiscal 2011 we will continue to focus on our key priorities. Again, great people providing great service, continual refinements and improvements in our hub strategy, leveraging the Internet, profitably growing commercial, ever-improving inventory management and improving our product assortment. Before we move to Q&A I want to again thank and congratulate our entire organization for their dedication to our customers, fellow AutoZoners, stockholders and the communities we serve. Our approach remains consistent. We are focused on one team going the extra mile in 2011 and we’re in a solid position to do just that. Now we’d like to open up the call for questions.

Thank you. At this time to ask a question please press star followed by 1 on your touchtone phone. You will be prompted to record your name. To withdraw a request you may press star followed by 2. Our first question today is from Alan Rifkin with Bank of America. Your line is now open.

Thank you very much. Hey, congratulations on a great quarter. First question for Bill Rhodes if I may. Bill, with respect to the one team initiative, could you maybe just describe in a little bit more detail what the costs associated with this program are, when you expect those costs to reach their peak if the initiative continues to go as planned? And maybe if you will just quantify a little bit more some of the net benefits at the store level that you’re seeing. Thank you very much.

Sure Alan and thank you for your comments. First of all, there are two different ways to talk about this one team. First of all we have a test in a very small set of stores where we have enacted the one team approach and basically what that means is we bring the commercial desk out on the counter. And so there is some very minimal cost related to relocating that commercial desk. But then they function as one team and they can from that counter, anybody can service commercial or retail. The bigger part of it is this whole attitudinal shift in our organization of everybody chipping in. We’re not looking inside the organization as I’m responsible for commercial or retail or All Data or Mexico. We’re really focused on one team and that has really been the surprise to me and it’s one of those things that just built momentum on its own. So going back to the first one, I don’t know what the timing of roll out on it will be or what the costs will be. It’s really too early. We’re about to roll out the next set of test stores to see where we go from there. But as that changes we’ll let you know once we have more clarity on it ourselves.

Okay. Question for Bill Giles - I believe you said that the continued roll out of the hub program did pressure SG&A. Would you be able to quantify what that pressure was in the quarter? And would it be reasonable on our part to expect that that pressure should really subside going forward now that the program is fully rolled out?

Yeah. I think if you think about it we had about a fully rolled out program today although in Q1 of last year I believe 71 of the programs were rolled out. So we’re anniversarying some of that impact. There was about an 18 basis point impact on SG&A this quarter and it’d be safe to assume that as we migrate our way through completely through the end of this year that that will begin to subside as we anniversary the roll out of that program. We did a lot of those since the fourth quarter of last year.

Okay. And one last question if I may maybe for Bill Rhodes. Bill, with such great success on the commercial side, revenues up 21%, could you maybe just articulate where that growth is coming from? Are you seeing accelerated growth from new accounts or are you seeing greater penetration from already existing accounts? Thank you very much.

That’s a great question Alan. We’re seeing it across the board. We track it from existing customers and what kind of growth are we seeing from them. That’s improved. We’re tracking new customers and what are we getting from those customers. And that’s improved. And as importantly, we also unfortunately lose customers and our trends in lost customers are also improving. So it’s across the board. Our team, both the field, sales and operations team and the sales force are doing a great job of really getting out there. And I talked about the sales calls that I’ve been on recently and the mindset shift of our sales team members and the receptivity of the commercial customers is just so vastly different than it was three years ago. So I’m continuing to be very excited about the future.

Okay. Thank you very much.

Thank you.

Thank you. Our next question is from Greg Melich with ISI. Your line is now open.

Great. I have a couple questions. First, Bill, you had mentioned in your opening comments that you didn’t want any false constraints in terms of growing the retail or commercial side of the business. Could you just elaborate a little bit on what a potential false constraint would be?

I mean people have asked us and I wanted to make sure and clear that up because people ask us are you trying to be a 50/50 split or a 70/30 split. I don’t care what the split is. I don’t want us to put false constraints on the organization to think we need to prioritize this business over that business. We need to have maximum market share in each of those businesses as long as we can do it properly.

Great. And over to Bill Giles, you had mentioned I think that gross margins were helped by Duralast expansion. Could you just give us a little more color on that in terms of what private label penetration is now and if there were any sort of categories that were particularly strong that drove that?

Actually when you think about it, a lot of the failure related categories actually had pretty good improvement overall and we have a lot of Duralast private label products branded products in those categories. So we actually increased that. And as you look forward we continue to believe that there is opportunity for us to find opportunities to introduce Duralast brand in other categories. But clearly wiper blades is a great example of where we have introduced Duralast brand and have had great success with that. And you know overall the customers have great acceptance of Duralast products and that continues to increase the penetration.

So specifically in the quarter was it more the mix shifting to categories where Duralast is strong or was it the launch of new extensions in the categories like wipers that drove it?

I would say it was more the launch of some of those things like wipers and a few categories within failure related products that actually increased. So it’s a good example of our ability to continue to promote the Duralast brand into other categories.

Got it. And then if I could, a last quick one because you guys brought it up, traffic versus ticket going back over time. It’d be easy if you just gave me the traffic or gave us the traffic and the ticket. So would you do that? And if not, I have another way to ask it.

I think we kind of did. We said that they were basically consistent.

They were consistent. And if you were to compare the change versus three years ago, sort of longer term?

It’s all in traffic.

It’s all in traffic. So at the end of the day people weren’t spending that much more, it’s just they’re coming more.

Yeah. I mean the average ticket may be going up an extra 1% or down 1% from quarter to quarter due to changes in commodities or whatever the case may be. But the real change has been in the customer count trend.

Got it. Great. Thanks a lot. Great quarter.

Thank you.

Thank you. Our next question is from Tony Cristello with BB&T Capital Markets. Your line is now open.

Good morning gentlemen. This is Alan Hatzimanolis in for Tony. I guess first question for Bill Rhodes, out of all of the changes in investment that you have made to your commercial business over the past few years, which do you believe has made the greatest contribution in improving the receptivity of your installer customers to doing business with AutoZone?

That’s a great question. All of them and I really mean that. If we would have done one without the other it wouldn’t have worked. That’s been the beauty of this program that for a while we had a sales force a number of years ago but we didn’t have the foundational elements in place. We didn’t have the right parts coverage, we didn’t have the right service model. And then we didn’t have somebody out telling our story. If we did one without the other it wouldn’t work. The beauty of what we have done is it’s been holistic, it’s been focused on the customer and it’s been sustainable and that’s I think been the big change.

Okay. And just as a follow up, I think Bill that you indicated last quarter that with the new commercial Z Net the number of steps required to place an order dropped north of 20 to just four. As your store level employees become more accustomed to the software do you plan on realizing efficiencies in terms of lower payroll levels or rather would you anticipate that this increase in disposable time would be focused more on outbound sales calls and other efforts to broaden the number of shops that you do business with?

I think the biggest benefit is it reduces the amount of time that you have to transact business with your customer. So if the customer is sitting there and you have to go through 20 steps it’s a little bit frustrating to them. The amount of time, we’re not ever going to see that time in payroll because it’s such small amounts. But it will allow them more time to help DIY customers, make outbound sales calls, work on inventory management - whatever the case may be.

You know another point too is that Bill talked before about the one team concept where we have got commercial out on the desk and being able to have DIY and commercial being serviced the same. The simplicity of the system really allows more people to operate the system. Before it was just too complex and now it’s very intuitive and very similar to the way our DIY Z Net system works.

Okay. And maybe one last question if I could - it looked like this was the second quarter where increased legal expenses year over year were called out as a drag on operating expenses. Can you give us a sense as to what is behind this and should we expect this type of year over year increase until it cycles into Q4 ’10 levels?

Yeah. I mean it’s really primarily concerned with one particular case but we’re involved in cases all the time and we continually evaluate them and adjust the reserve based on facts and circumstances during the quarter. So that’s really what transpired this quarter.

Okay. Great. Thank you very much.

Thank you. Our next question is from Aram Rubinson with Nomura Securities. Your line is now open.

Hey everybody. Good morning.

Good morning.

Two things - one, a question on the operating cash flow. It appears like for this quarter that the operating cash flow was greater than the EBITDA for the first time at least in history that I’ve seen. I’m just wondering if there’s anything kind of one time in there or seasonal in there to think about and then I had a follow up.

I don’t think there’s anything really one time necessarily, Aram. I think that we have continually done a pretty good job (conducting) inventory and CAPEX may have been a little bit lighter this quarter but not dramatically. So I don’t think I would think about it as a one-timer.

Okay. And then your neighbor in Tennessee and I know you guys know them real well, Dollar General, yesterday on their conference call said that they were looking to use some cash to buy back some of the leases and own more stores. I know you own already a good portion of your stores. I’m wondering in terms of use of proceeds from the cash flow you’re generating where that fits or if you have thought along the same lines as they are.

We have and we have for a while. And we continually go back and identify opportunities to renegotiate leases that are coming up given the environment that we’re operating in today from an economic standpoint. And then we’re also taking opportunities to buy out leases where we think that it makes economic sense for us. So we continue to evaluate the exact same thing.

Is that presenting kind of an incremental value as they seem to suggest or is it kind of a…?

I think it’s a slight incremental value and obviously we only do it where it makes sense. We’re not doing a significant number of them but we are finding opportunities.

Okay. Thanks. Good luck.

Thank you.

Thank you.

Thank you. Our next question is from John Lawrence of Morgan Keegan. Your line is now open.

Good morning guys.

Good morning John.

Just quickly Bill when you talk about inventory, I mean I know you spent a lot of time in the last several years with line reviews and preparing for commercial and adding inventory. But how does this macro environment that we have today with more miles on the cars, how does that change your merchandise mix as you look longer term and trying to plan these hub stores for appropriate levels of inventory? Are we seeing a consumer shift down or what has been the pattern of if you dive into the product mix?

That’s a great question. First of all, it makes you take another look at how quickly you want to exit product categories because vehicles are being held longer. And so if anything, the bell curve is getting flatter or wider and so you are having to re-evaluate when you want to exit certain categories. But the beauty of the model that we have in place today with the hub stores is that we don’t have to replicate that inventory coverage in 4400 stores. We can put it in 145 stores and then leverage it in those 4400 stores. So I talked about the importance of this program that we have on our hub stores to right size them and make sure that they are in the right place. That is going to be a very important part of our strategy as we go forward. It’s going to take us a while. We have a significant number of stores that frankly don’t have the product offering that we want today because they are simply too small. And so we are going through a process where we are going to expand some of them in existing locations. We are going to relocate a couple of them to larger locations and then relocate some of them to put them in the proper retail and commercial center relocations.

And secondly Bill, I was intrigued your comments about online, that customer. Can you talk a little bit about obviously the online business for auto parts is fairly small today. What are the - going forward what do you think are the attributes or the things that have to happen to make that grow going forward? And why are you optimistic that you can deliver that?

I think one of the things Bill mentioned before was that a large portion of our customers get online to get information about the part and availability and to some extent pricing before they come to the store. And so we have seen our percent of visitors increase significantly over the last year. And so what we’re aimed at is having a seamless shopping experience for our customers so that they are able to shop online if that is convenient for them or to get online and get a significant amount of information about the product. They can also get online and retrieve repair information and provide them with a wealth of information over and above what we can give at the counter. So it’s all about trustworthy advice and then also it’s also about expansion of assortment as well. And so obviously online we have the ability to provide a larger assortment than we do inside the box. So again, we want it to be a seamless shopping experience and we want to continue to be able to promote trustworthy advice. And we’re getting a significant amount of visitors coming to our site and that is increasing. So we know that we’re doing something right.

Great. Congratulations guys. Thanks.

Thank you John.

Thank you. Our next question is from Kate McShane with CitiGroup. Your line is now open.

Good morning. This is Ivan Holman sitting in for Kate. Congratulations first of all on a great quarter. My first question kind of touches upon market share. We were wondering where are you taking share from? Where do you think your largest opportunities are in terms of continuing to gain share? Is most of it coming from the larger competitors or the smaller mom and pop shops and dealerships? Where do you see your largest opportunities there?

Okay. I’ll try. I’m having a little bit of trouble hearing you but your question was regarding share and I’ll start with commercial. Commercial our share is miniscule at this point in time. So it’s not about how large our share, where it’s coming from - we’re really in the introductory phase in commercial. But we’re introducing ourselves very fast and very well at this point in time. To retail I think it’s certainly a more important gauge for us. And when we talk about share we’re referring to MPD market share and there are only really the larger competitors are the only ones that are participating in MPD today. So when we say we’re gaining share in retail and commercial, it’s versus the remaining market that contributes to MPD and there are about eight or nine companies that contribute to that. I do not know although I would expect that we’re gaining share versus the mom and pops in the other parts but I can’t confirm that with data like we can with MPD. The MPD information on where we’re gaining share in the retail business is in virtually every geographic area and in almost virtually every category. So it’s across the board and obviously we’re gaining some of that share because we’re expanding our number of outlets but I think we’re gaining it because we’ve got the right product assortment and the right service model.

Great. Thanks a lot for the clarification. And a quick follow up if I may - with regards to private label penetration as you are ramping up your e-commerce platform can you provide some color if there is any difference in terms of penetration rates in the stores versus on e-commerce Web site and how you expect that to evolve? Thank you.

Yeah. We don’t expect to see any difference. The product offering is going to be relatively similar albeit slightly expanded on the e-commerce site. But again it will be the same representation and as we mentioned before, Duralast is a great branded product and is very well received by the customers both online and at the store.

Thank you.

Thank you. Our next question is from Scott Ciccarelli with RBC Capital Markets. Your line is now open.

Hey guys. How are you?

Great. How are you Scott?

Not too bad. You guys are obviously doing a lot of good things. You’re putting up good results but you also mentioned, Bill, the positive impact that weather had on your business a couple of times during the call. I’m just wondering when you look at the composition of your sales is there any way to put an estimate on the impact that weather may have had? And I know over the long term it’s going to balance itself out but just trying to figure out kind of what the impact was this particular quarter.

It’s very hard to determine a specific amount and we have some outside sources that help us try to estimate it but again, I’ll highlight that it’s an estimate. But you could think about it being maybe 20% or so of our growth in same store sales.

Okay. That’s helpful. And then I guess my next question is you had talked about you’re still seeing the strongest growth rates in both the failure and maintenance categories, kind of a little bit softer in the discretionary. That makes sense. It’s pretty similar to kind of what you have been seeing for a while. Have you or are you willing to put kind of growth rates on those different categories at this stage?

Looking forward?

No. Kind of what we have seen in terms of is it failure is - I don’t know comping at a 12% rate, maintenance is a 9% rate? Is there any better way to kind of create the ranges or let us think about the ranges?

I don’t think they’re probably as wide as you’re thinking necessarily. I think it’s failure related parts are growing at a faster rate than the other ones. Everything is growing so it’s not as though something is negative necessarily. So they’re all growing at a healthy rate and failure is growing probably the fastest followed by maintenance.

Got it. All right. Thanks a lot guys.

All right. Thank you.

Thank you. Our next question is from Michael Lasser with Barclays. Your line is now open.

Good morning. Thanks a lot for taking my question. Bill, if I clarify some of the comments you made earlier, a few years ago technological innovation led to a lull in the industry as some of the products that lasted longer meant that demand suffered a little bit. Is there any evidence that a similar trend might occur this time around? Rather than on the product side is it on the consumer side where we’re seeing maybe a release of pent up demand? And as some of the work is done, that’ll lead to slower trends that you’ll sort of have to make some of those investments in the next year or so?

Yeah. I’ll start with the technological phenomenon is still ongoing today. You take carburetors and fuel injectors, there’s 1000 examples of where the systems on the vehicle have changed and the failure rates have been reduced. But the cost of those products are so much more. What’s changed now is the customer’s behavior. The customers are more focused on maintaining their vehicles today than they were three or four years ago. And if you go back to that period of time maybe there were more headwinds out there than we realized. Maybe new car sales were more of a headwind. Maybe people were turning their cars more frequently therefore they weren’t maintaining them at the right level. Certainly when gas prices got over $4 a gallon that was a major headwind. But I think that there has been and obviously you’ve seen it - we’ve gone through the Great Recession and it’s the toughest economic times that this country has ever seen since the Great Depression. And I think people have changed their mindset and they have changed their mindset on how they deal with debt. They have changed their mindset with how they deal with one of their most valuable assets, which is their vehicles. And although we don’t know what the future is going to hold, my suspicion is that there is going to be some long-term benefit that is going to be positive for our industry out of people focused on taking better care of their vehicles and not buying and selling as frequently.

That’s very helpful. And then second question - as you reflect on the wave of growth the industry has seen over the last few years, have you seen any changes in the competitive behavior of the other players from then until now?

Well, first of all I think our competitors are very good competitors. They run very good businesses. I wouldn’t say that their business models have changed materially, not in the way that we see them out there. But they are very good at what they do and they’re getting better every day and if we don’t get better they’re going to catch up to us. So it’s on us to get better.

Okay. Good luck with the rest of the year.

Thank you.

Thank you. Our next question is from Matthew Fassler with Goldman Sachs. Your line is now open.

Thanks a lot. Good morning and congratulations on a strong quarter.

Thank you.

Two questions - the first is just a follow up on the Internet business and just as you’ve spoken about it I think you’ve spoken about it largely in a B2C context and it would seem like there is a huge cost opportunity at least in terms of B2B and commercial customers. So as you’re getting much deeper penetration with the commercial customer base, what’s your sense for their appetite or at least their receptivity to movement here? And do you think being first to market with a great platform would be an asset in that space?

Yeah. I mean just to be clear we’re not first to market necessarily. I mean there are others that have much higher penetration. But we believe that with the new platform that we have launched and the receptivity that we’re seeing that we have significant opportunity to increase our penetration on that side of the business. We do see good receptivity and I think that the consumers, the customers are continuing to migrate to that. And it’s going to be a shop by shop event because some shops only deal in electronic ordering and others simply don’t. But one thing’s for sure, it certainly allows us an opportunity to garner market share particularly with those shops that are very focused on electronic ordering. But I do think long term that the penetration will continue to increase and it’ll become a much more acceptable way of conducting business for even the up and down the street shops.

Got it. And sorry, is there a real cost advantage to you? Is there a real cost advantage to you (for doing it)?

I don’t think there is a significant cost advantage. I think it’s more about our ability to be able to streamline the process for both the customer and ourselves. There is probably some; it’s too early to quantify what that would be. But the real focus of what we’re trying to accomplish is providing our customers who choose to shop that way or execute their business that way a great platform by which to execute it.

Great. And then my second question just really is to the underlying SG&A run rate. Obviously you had the kind of quarter that gives you the opportunity to put a lot of money to work in a lot of different initiatives and incentive compensation. If you think about an environment where sales might not be as robust and it doesn’t seem like that’s the case right now, what kind of underlying SG&A growth should we assume is sort of the normal steadyscape for you?

I think that the one thing that the organization has demonstrated over time if you look over the last year or two or five years, there is an ability to manage the cost structure in accordance with the sales environment that we’re operating in. And if you look over the last year, you’re right. We have had a great opportunity to be able to invest in some initiatives that we believe are actually contributing to the results that we’re experiencing today. And so we’re going to continue to manage it that way and at the same time allow ourselves to be nimble so that we can pull back where we need to if in fact sales were to change.

Guys, thank you so much.

Thanks Matt.

Thank you.

Thank you. Our final question today is from Christopher Horvers with JPMC. Your line is now open.

Hi. It’s Mark Becks on for Chris. Just coming back to the hub store expansion, do you guys have an idea at this point - I think you did two relos of the hub stores this current quarter - of what kind of numbers behind potential relocations or additional sizing?

Yeah. I mean we do have numbers particularly on the additional sizing, more so than the relos because we know today what products are not in the stores that we want in the stores and they’re in other hub stores and we can see what their performance is like. Obviously we’re not going to share what those numbers are but they are certainly sufficient to allow us to move forward with a relocation or expansion strategy on virtually all of the hubs that we have today and that will allow us to achieve reasonable IRR in excess of our hurdle rate. So we’re very excited about it. We have very good visibility to what we think is going to happen because of the other hubs and we’re working very rapidly to make it happen.

Okay. And just kind of switching gears, the acceleration of comps, you spoke to that being from execution and perhaps I was wondering if you’re seeing anything on that end maybe from a better customer or the customer feeling a little bit better about their pocketbooks?

I wouldn’t say that. I think that obviously our business took off when they got more concerned about their pocketbooks. I haven’t seen or I don’t think we have seen any material change in their mindset over the last six to nine months.

Yeah. I think our traffic continues to be healthy and we’re obviously probably experiencing new people into the industry and the mix of sales that we have from a product perspective, we’re probably seeing some customers that are actually doing more failure related work than they have in the past.

Okay. And then just finally I guess speaking to the discretionary, it looked like it was flat 15% and 15%. Is there anything that you’re maybe seeing in your business now that would lead you to believe that the typical seasonality would be anything different going forward?

No. Not at all. As you would expect, discretionary categories are discretionary by nature. And in this time of economic challenge people aren’t as likely to change out their floor mats or to do other discretionary things.

Great. Thanks.

All right. Thank you.

Thank you.

Go ahead.

I would now like to turn the call back over to Mr. Rhodes for closing comments.

Okay. Thanks. Before we conclude the call, I'd like to take a moment to reiterate that our business model remained very, very strong. We remain excited about our growth prospects for the upcoming year. We cannot take anything for granted as we understand our customers have alternatives. Our culture remains our key points of differentiation from our competition and we must not lose sight of the importance of basic store execution in order to remain successful. We have a solid plan for 2011 and we’re excited about our opportunities. But I want to stress that this is a marathon and not a sprint. As we continue to focus on the basics and never take our eye off of optimizing long-term shareholder value, we are highly confident AutoZone will continue to be incredibly successful. Lastly, I’d like to wish everyone a very happy holiday season and a prosperous new year. Thank you for participating in today's call. Have a great day.

Thank you for participating in today’s conference. This does conclude today’s call. You may now disconnect.