Its stores are empty. 90% of America is in fear of the economy, job loss, or are already out of work and underemployed. The amount of disposable income they have to allocate to useless $130 teapots is almost nil.
For the other 10%, they may look at these teapots and high end products in the Teavana store, then they will go online and get it half the price.
And these are ALL the customers that COULD buy these product. The bulk of people walk past the store, shake their head in bafflement, and move on.
I cannot give this a stonger sell rating. I am 10 times more bearish on this stock than I was on RIMM. Take a look at RIMM today, its fully ruined.
You are completely wrong!!!!! I have a friend who has been working for this co. for the last 1.5 years they are so busy it is unbelievable, they are hiring new employees every day a lot more than most each store is selling approximately 3-4k a day completely profitable.
Your not seeing this clearly. The Teas are very good, I have been in two stores already (at opposite ends of the country) with large amounts of sales taking place, AND, actually, per 8 oz cup, even the most expensive teas are usually AT LEAST 1/2 the price of Starbucks. For example, a high end tea like Monkey Picked Oolong is 25$ for an average of 27 teaspoons. 1 teaspoon = 8 oz of tea, or twice that if you resteep (like I do). = 92 cents per cup, or 46 cents if you resteep. That is THE most expensive tea. My favorites, though, are in the 12-15$ range = @20-55 cents a cup. Waaaay cheaper than SBUX, like 1/3 cheaper. Nothing against SBUX, I like the coffee... I drink it, but I like tea too, and I like how it's cheaper.
I'm not defending Starbucks. But the addiction is there and they have a product and environment that make people happy. They also have a great selection of pastries, baked goods, and breakfast sandwiches.
Teavana is an empty showroom of products that Americans have no need for.
Again, its like a hammer store. Sells only hammers. Only metal hammers. There is only so much demand for this. Worse still, its expensive. Wanna buy a high priced metal hammer? I did not think so. Thinnest market imaginable.
Channel checks show that Teavana store are empty. Deserted. Those same checks show lines around the corner in the morning in front of any Starbucks, Duncan donuts, etc...