A quick look at the books shows the value of K-Swiss inventory is three times receivables. This is a disaster for any shoe company. Footwear and apparel inventory is both seasonal and trend sensitive. If it did not sell when it was introduced, it is dead and will have to be sold off for pennies on the dollar. No well-managed shoe company would allow such high inventory numbers to occur. More proof David Nichols needs to be fired and Steven Nichols should step down. Enough is enough!
KS is carrying current inventory on the books at full value but at least 75% of it is old stock and will be sold as closeouts at roughly half the landed value. So, the real share value is more like $2/share. It is only going to get worse because David Nichols is way past his expiration date with everyone he deals with. No one likes him, no one trusts him and his father doesn't know what to do with him. Get out of this stock until David Nichols is gone.