Not a thing.
Sales increased 22% in 2012, same store sales were 10%. Solid. Especially after reading last week some retail calling the Christmas season sales as 'soft'. Doesn't sound like that was the case for Joe's. In fact if I heard right, Joe's didn't participate in Black Friday's slash and grab promos which resulted in
'flat' same store sales, yet gross margins increased 11 points resulting in higher profitability. On Cyber
Monday they ran the same promo as last year, (but remember the e-commerce site began in May and took till the 4th quarter to get the bugs out), transactions were up 43% but the transaction value was up
over 60%. So when you hear Rics talk about the way it was and is trying to compare when growth was
30% that was before the recession hit, and probably most retailers had the same growth. So jump forward 5 years Rics and just look what the new tech has brought about just in the past year. Now I
know you and PNP aren't really living in the past, you just sound like you are, and message board scare
tactics aren't going to push the stock one way or the other. Now back to the topic of the presentation.
Men's sales increased 30%. Else contributed 8m to the top line. I think they opened at Macy's in Feb
with the Else brand and 140 doors, by year end it was 300 doors. The target for Macy's on Else is the
19-30 year olds which adds a different demographic. Joe's customer as Marc says is a 32 year old female earning on average $140k. So now shall we say, both ends are covered? Macy's push with Else
could result in 600 doors for 2013.
Although revenue is up 22% for 2012, the 4th quarter is up 30%, and Marc says 'we expect to beat
these metrics anyway'. He was referring to the press release.
A few other highlights
developing an app for the Iphone.
restructed international sales with the focus being on Paris and London
with the World Cup and Olympics a push or focus on Brazil.
I guess we can see why they hired a VP of Int. Sales
the last 3 retail stores opened cost 200k (no more 250k and 300k) Marc said a quarter of their retails
were 1,500 sq feet or less yet 2x more productive, therefore should result in higher profitability.
Their target is 40% growth in 2013 from retail/same store . Half will be from the stores just opened in
2012. A pretty lofty target, so if the economy doesn't go into the dumpster might be possible to achieve.
So now you can see why Rics is working so hard to give you a different impression and why he says
going forward Joe's only deserves a p/e of 3-4 fair value and share price of .30. What is that boy smokin? Please whatever it is, keep it and don't share.