Kate Spade, Juicy Couture and Lucky Brands appear gone now
If you read the list of clients for PFSW in the PR issued today you will notice that for the first time the names of Kate Spade, Juicy Couture and Lucky Brands are gone. The next question is when did the company know about this given their were job postings for Lucky Brand back in September mentioning the move to GSI. PFSW had investor conferences around this time with no disclosures about the pending loss of FNP clients.
The last chapter of this one has not been written. I am wondering if PFSW put out a misleading 10Q for the 3Q of 2012 and/or during the investor conferences. How definitive was the loss of the FNP clients in the fall of 2012?
I do believe the only reason to own this now is the possible take-out by someone. 2013 earnings will be a large loss with ebitda far less than achieved in 2012. it is dead money without being acquired.
Cliff, Lucky and Kate Spade still on website and they also signed Diageo the largest liquor company in the world for full launch of alexander and james a newplatform for all of their brands. The only thing I cannot understand is why it was not announced in the news.
Since December, PFSW has announced 3 additional clients. If they add one contract in each month, they will still be profitable in 2013, may be even better than 2012. Soon you will see that Q4 revenue and profit is better than last year without these clients. I think you should look at the positive news as well.