A message from our CEO to our shareholders: Fiscal year 2004 was an exciting year for Chico’s and we are extremely proud of our performance. Our brand is stronger than ever and we have tremendous momentum. Our customer-centric philosophy and unique merchandise fueled much of our success and helped us exceed the $1 billion mark in yearly sales for the first time. We also delivered our eighth consecutive year of double-digit comparable store sales increases. Our financial results and financial position have never been stronger. In 2004, net income rose 41% from $100 million to almost $141 million or $.78 per diluted share on a split-adjusted basis (the per share information takes into consideration the two-for-one stock split we effectuated on February 22, 2005). Net sales also increased for the fiscal year by 39% to a record $1.067 billion. Comparable store sales for company-owned stores increased 12.9% for the fiscal year, and both gross and operating margins improved once again. Our balance sheet is solid and we have no debt other than our current operating liabilities. We increased our combined cash and marketable securities balance from $120 million to $266 million, and our net book value increased by $186 million to end the year in excess of $560 million. We also adopted a stock repurchase program and acquired $5 million of stock under this program. Fiscal  2004  saw  many  other  significant accomplishments for Chico’s. We opened  100 net new stores, expanded or relocated 31 stores, and increased our net square footage by approximately 23%. We completed the White House | Black Market integration, including the  We continue to add bench strength to both our Board of Directors and our executive and  middle management teams. In fiscal 2004, we expanded our Board to nine members  with the addition of Stewart P. “Tom” Mitchell, CFO of Ferguson Enterprises, Inc. Mr. Mitchell joined our Board in June and became the chair of our Audit Committee. His addition has allowed us to satisfy the New York Stock Exchange requirement that a majority of our directors must qualify as independent outside directors. With his financial background, Tom’s addition has enabled Chico’s to meet the requirement that the Audit Committee contain a “financial expert.” As many of you know, corporate governance has always been extremely important to Chico’s, even before the recent enactment of more stringent requirements by the SEC and the New York Stock Exchange. We have continued to focus on and strengthen  our  commitment  to  corporate governance. Chico’s is pleased to report that, based on our assessment, management believes that the company’s internal controls over financial reporting are effective and we are in full compliance with Section 404 of Sarbanes-Oxley. conversion of its back office and cash register systems into Chico’s systems. We also rolled out “The Black Book,” a new customer loyalty program for White House | Black Market that emulates the extremely successful Chico’s Passport Club. And finally, and probably most noteworthy, we completed the implementation of the pilot phase of our new intimate apparel line, soma by Chico’s, with the opening of ten stores across the United States. 2