Q4 retail sales went from $5.9 million in 2011 to a max estimate of $6.7 million in 2012, for an increase of 13%. I was expecting more growth in their retail segment, considering the store base went from 22 stores at the end of Q4 '11, to 25 stores by the beginning of Q4 '12. Makes me wonder if same-store sales growth dropped below +5% in Q4. The previous quarter (Q3) had same-store sales +7%, which was down from +10% in Q2. At least the total revenue held up okay at $31.5 milion or so.
Why do you think the retail strategy is a failure?
My biggest concern is the company's horrible marketing. Their ads target exactly nobody. Look at the video on their homepage, and it is some bizarre bondage outfit and play, and no one seeing that video would have a clue who this company's target customer is, or what their advantages are in that market.
To me JOEZ is about exciting color and good fit. Why is it so difficult for them to sell what they actually are, instead of hiring all of the bizarre advertising agencies to do avante garde videos that attract no one?
Just one more comment, Cot. Do you think same-store sales will turn negative sometime in 2013? I suppose there is hope for retail as long #$%$ sales remain flat to slightly positive. But it's getting down to the wire. I think the market reaction today is all about the implied retail ss sales trend. Or it could just be profit taking after the runnup from sub $1. The volume isn't very big, which is one good sign.