just need to keep losses in line.
think the move to a REIT on the properties will result in about a $200,000,000 rent expense is incremental. Gonna have to sell a lot more stuff to pay that bill.
and all Stores are profitable.....magic!
Last Quarter SG&A was 30.8% of sales ($149.8MM/$485.6MM).
Here's how it looks for Best Buy:
$2.013MM/$13.028MM or 15.6% of sales.
HH Gregg needs to quckly reduce net advertising to 1% (about 5% gross) and reduce payroll by 20%. Even then it will be a challenge.
supposed to lose $2.59 a share - think they will beat that by a buck - only lose $1.59 a share. But comps will be about the worst they have had over the last 5 years.
you have a compensation system that puts the Sales Associates at odds with the customer - ala Circuit City, et all. Need to change the compensation system asap or the poor customer experiences will continue.
about the only think that would drive the price up that much would be the announcement of a massiver 'Store Closing' list, including all K-Marts.
They have to radically cut costs and the 2 biggest costs that can be managed are Advertising and Payroll. They need to cut ad spend by at least 50% and reduce compensation by $10,000 per Sales Associate. If they don't do that they cannot survive.