"Gross profit for the retail segment, which includes distribution, occupancy and merchandising costs was 16.5% compared to 22.1% in the prior year period. The decrease in gross profit was driven by lower merchandise margins and the deleveraging of occupancy costs."... (from this mornings earnings release)
Yikes that's -5.6 points or a drop of 25% over q2 of 2009, which was a terrible quarter itself..
Does anyone know what their average remaining lease terms are on their retail stores? Any room to cut costs here soon or are they going to keep burning through money like this?