Just read the entire CC transcript and my takeaway is as follows:
Significant Guidance Down in Q'4 vs average estimates due to continued shift in eliminating off price business, soft Europe, Radio Shack issues and margin erosion due to heavy discounting needed to blow thru higher priced headphones that are not moving in store and that they have in high inventory. vacating this space...
Rev- now forecasting a high 20% decline vs avg estimates of 19%.. IMPACT of about $10M in revenue.
EPS- huge miss here... now projecting EPS of .06-.09 vs avg. estimate of $.27... primarily due to lower revenue, lower GM and increased SG&A due to 1 off holiday campaign.
2014... wouldn't provide specific guidance but did indicate that new innovation would not be maximized until 2015.. 2014 will be about "seeding"...
IMHO- he is starting to shift the turnaround to 2015 and beyond vs 2014 as the implications of this tighter distribution strategy, enforced MAP pricing and fewer better customers takes root. Still like the direction and believe in the "turn around" plan but i don't see any major catalyst in the ST that will help move this stock PPS forward. Financials are not getting better any time soon so unless we get a rumor of a buy-out , etc.. I think this is dead money for a while. I will revisit it in the middle of 2014 and jump on for the ride into 2015 if the execution improves and things continue to move forward. GLTA
agreed.. other than the "talk of one".. i guess to be fair you have to start with a plan/ strategy ( which they have and have articulated) and then build the right team to help execute this plan ( which they have also done) and then pray like hell it works and in time for it to make a difference. I am in your camp, i don't see any material improvement in 2014 and 2015 only gets better if the "turn around" plan actually gets traction and at this point in time nobody can answer that. The bigger worry are the big guys ( i.e Beats etc). Hoby talked about the slowing down of the Over the ear and HIGH priced segment ( including the failure of SKUL ) .. no surprise that this fad is fading but where do you think those guys go to gain revenue.. they push the brand down market right up against SKUL, which might eventually put their under $100 leadership at risk. Not an easy climb out of this mess IMHO.