I think the way this stock has been trading over the past few months has telegraphed this weakness - I mean for a company that has such big growth plans, makes you wonder why the stock is so stagnant. I've contemplated for a year buying this stock, but when you review the financials each time it sure doesn't seem like they are having good comp store sales. And of course for the time being they refuse to comment on same store sales. Let em open a million stores, it's not going to help the stock with lousy comps.
I have to say that this "miss" stuff is kind of ridiculous.
They have not reported earnings from this quarter. They have reported that they plan on spending a lot more on advertising and on store growth. So earnings will not be what analysts had counted on, based on store and online/direct sales.
Their revenue can very well increase dramatically. Their margins can get better. Their sss numbers can be great (although they won't publish those until their total stores sales are at least 50% of their total sales...whenever that may be). They aren't planning on slowing down, or having poor sales. They are just planning on spending some of their capital on expansion.
That's it. Pure and simple. This is a success story. Longs should be patient.