Ivan, you're a genius! You found the chink in CWTR's armor. You wrote: Look at the extreme increase in inventory reported last quarter. The amount far exceeds that required to support the increase in sales. Inventories increased 43.6% and sales increased 41.2%. That huge difference is 2.4%. How can they possibly pay their debt with that huge increase? Oh yeah, they don't have any. What's the fascination with the catalog, you cross dress?
Part of the reason that there is high inventory is that their direct sourcing program is kicking in to a larger extent and some items have arrived early. They mention this in the conference call.
They also mention how clean they were of inventory at the end of last quarter. The items now on sale are NORMAL and let me tell you, they do NOT have many sizes in them, especially my size! In many cases they don't have the item at all (boo).
At the store level they do show a lot of inventory - stores are very full. However, they also seem to be sell through this stuff. I visit California stores often, up and down the coast. They are busy.
I am not concerned about high inventory at this point.