Call started out good. Beats on many fronts, including gross margin, net loss, inventory, cash on hand with no borrowing debt. After the Q2 results, the call was not so pretty. August has started off slow, company is guiding lower, they were blind sided by other companies pricing to kick off back to school. Never did they mention e commerce really, except that is was up 16% year over year. Never did they mention that they had a dream summer weather wise, yet they did complain about it in the previous quarter. They never mentioned facebook, twitter, youtube, MTV awards sponsorship this month, their mobile app. Nothing on these fronts. They talked about their Ipad in about 1/3 of stores currently. They basically said they missed the boat in back to school, yet on Q1 call, they said they were anxiously awaiting back to school and were prepared for a week or two earlier launch. CEO says they are still learning. So, they had some good beats in Q2, but this guidance is what counts. It's unfortunate. Dress Irresponsibly was very rarely used in the call. I thought the impact would have been bigger. They lost the denim game big time, it seems. They cannot sell jeans for $ 25 like others. I expected better. The call wasn't disastrous, but it wasn't good either. I fully expect 2012 to be good for psun, that just means holding and being patient for another 15 months.
what i think led to lowered guidance for Q3 was that some stores were extremely aggressive in the early weeks of back to school(aug 1-15) and selling denim for $ 25, and advertising 50% off. This may have caught Psun off guard a bit, so promotional, so early...but I sense they quickly adjusted to this aggression, and are making up now for missed opportunites a few weeks ago. The second time I listened to the call definitely leads me to think that Yumaman is right, they doing have something up their sleeve. They still will have cash in the bank after Q3, they will still have a full $ 150 M to dip into their credit facility if need be, though its tied to inventory. Bankruptcy is clearly out of the question. 1st half 2011 was good. I really think the slower start to early Aug. has been fixed and adjusted. I love the fact that CEO seems a little sneaky, a little shady, something is brewing here. Very reserved guidance, and we are only what 28% of the way into Q3? If you recall, Q2 was off to a slow start cause summer was late arriving. Yet they beat the quarter. Reserved guidance!!! Not such a bad thing. I think something is up...and I'm happy to be long!!!
something is up!?!? larger retail stores ate there lunch. psun does not have pricing power like anf. management cant keep up with other stores and the market just experienced a 20% drop where other companies are cheap and turning a profit. if psun survives the stock price will go up but other companies will go up 3 times by then. summer and back to school was there last chance. i am dumping this like a turd! look at hot topic ticker HOTT, thay dident have advertisement like psun and look at there stock.
i was long psun but management is a joke. if thay got something up there sleevs it would be there @ss cause there thumbs are so far up it.
Yes. Something is brewing. He sure did not sound down trodden, depressed, pensive, defeated, anxious, apologetic, scared, nervous, defensive, apathetic, or any other concerning synonyms. And how is it all the advertising all of a sudden is not discussed and immaterial. Verrrry interesting.
As a good poker player and business man this CEO is holding his cards close to his vest. He will not volunteer information about this business and in many cases he just refuses to disclose what they have up their sleeves. He is very non boastful. Which is good because there are a number of things he could proudly rave on about. He is and Pacsun is finding its way under the radar. For example, no press releases between quarter reports. We don't need them on cnbc and touted by the analysts until they are way ahead of the game. We do not need the stock upgraded for all the competitors to see. We don't need to
give awesome guidance when we are playing cat and mouse with landlords over leases,especially when all the talk is about a double dip. We don't need him talking about their ads and internet initiatives. We can see that for ourselves by following Facebook,Twitter, and their apps. They are still learning but who stops learning? They are making major progress. It takes time. Eventually when it all comes together the stock will appreciate so fast it will make up for the time the stock went down or sideways.