This theory is not working out so well retail sales continue to be soft and the consumer it slowing down which is confirmed at wholesalers report soft grown go forward
Retailers will report soft Comp store sales numbers tomorrow so although the consumer may have more cash they are spending it on AUTO sales not consumer discretionary
Last year they had significant repeat orders due to the cold weather this year nothing so they have all that carryover inventory to sell at a discount
You may not know this if you never worked in retail but that's what will happen
This stock will be going down into the low 60's and hear is what they will say while reporting the next quarter:
- Due to unusually warm weather business continues be soft in cold weather related product
- Compression inventory is backing up with carry over inventory increasing from 35% to 45%
- Repositioning the women's business although incremental to last year missed the sales forecasts
- Foot shows a 60% increase over last year but not enough to off set the drop in women's
Revenues will be light since there was no repeat orders due to warm weather and forward looking orders could soft because Nike was only up due to up coming World Cup & the fact they launch new product with the start of the Olympics...UA doesn't have this advantage....
The "Boys Club" at UA will struggle with women's since they Pres. of design is challenge with the gender difference
I still believe this to be true especially now....the only value to this company is the credit card business and I honestly think that Singer is stuck with this company for sometime.
This stock with drop heavy with next earnings release
MS market research makes a lot of sense the "Boys Club" at this company are not in touch with the women's consumer therefore they will not achieve the growth that they have projected.
When these results are combined with slow selling in cold weather product this stock will be at $60-61 with earnings
The business didn't get better in the stores until Xmas and will so much uncertainty want Is gained by say anymore then they did....they didn't say anything....why would they
I am sure this time next week I will be happy to be long the stock and when they announce the QTR even more
They sort of said nothing....we are on track...that's it.......
You really have very little insight into what companies would actually say and might want to go back the read the articles again.
The sales in the month of December didn't improve until the week of Xmas this year and that is historically very late.
With the big short position in ANF right now I am confident that this stock is going to pop if not next week but when they announce Q4.......we will see you in the losers circle