Kept saying on CNBC Fast Money that inventory was up 356% YoY. It was actually up 156%, which is not drastically different from the 91% sales increase and considering coffee prices are up 60%. Even SBUX inventory was up a lot YoY for this reason.
Tilson is a grocery clerk. You think these yo yo's do there own thinking? It's group think! Get enough b s artists in the same room, doing the same thing, talking the same blah blah, and soon enough they believe they are all geniuses!!
Growth is clearly slowing. Inventories arent up because GMCR is stocking up for the holiday they are up because the growth is slowing down. In the streets view it all adds up to a lower share price. This is nothing new
I think that the market expects that sales growth will slow...you can't increase sales by 75% year over year forever. But what level of inventory is right for a company that might do $1 billion in sales this quarter?
Glad that you pointed out-this guy was blasting gMCR on CNBC- while Fran was gving the information about 65% price increase in coffe- I think the inventory levels were reasonable given that they expect a strong holiday sales! But who cares about facts!
As I was listening to him talk on FastMoney, I was thinking the same thing...sales are up bigtime, and we are heading into the holiday selling season. Don't you want to accumulate a lot of inventory about right now?