they are going to have to sell off galaxy if they want to continue positive comp "reporting' trend. I don't believe that they separate out each division (i.e. field and stream, GG, DKS stores, and Runner concept. as far as apparel expansion is concerned, I agree that's there more opportunity to do that, but now you are looking at CapEX to refixture stores to reduce so you can expand golf.
considering that most people know that Herald Square does close to $700 million....you better believe it. Who cares about Trump anyway...he's a washed up reality host
10000 people were projected to hit the store at 12am. I must say how impressed I was when I heard Terry L (CEO) was sitting at the front doors in Herald Sqaure at 12am. That's real leadership and digging in with your people.
All retailers "have the ability to grab product or cancel product", its called writing a PO or requesting a RTV. If you really follow this retailer like I do (as well as 6 others) DKS stores are sitting on carry over merchandise from 2011 in cold weather at the store level. Black friday promo at DKS internet was 40% off of carryover outerwear. If you walk any DKS store, its additional POS off of 2011 cold weather markdowns. You can cancel all of the goods you want, but its not going to help sales. also if you look at black friday, this year vs last yr not a very compelling story to drive business into stores at 12am. I think Macys, Walmart, Target, Best Buy, Kohls, and Toy R Us were the winners driving traffic through effective marketing tools...not just opening up at 12am
dont be fooled by the numbers. 40 plus store last year (10% of store base) just got the first comp under their belt. Also the company is driving 1-2 % comp sales through internet kiosks in the store. in the northeast were the brand is heavily positioned, warm weather will impact the business
i am on board with you both. the panic is in the air. the company's current assets make it a solid purchase at $2.75 to $3.15 per share. It sounds like the boys got a little sick a more. they handled this transaction completely wrong. they shot themselves in the foot when they reoffered the extra $0.05. now they just lost 35% this morning. I wish the company would repurchase the 11% and get these clowns out of the picture.
Next 2 quarter should be
1. get a new board, clearly they were waiting on a buy out and not taking a steps to push forward
2. get a CEO, TS is gone in 4 weeks
Get people fired up, I can't imagine how people are feeling at this place. its like an unwanted step child.
Reduced inventory, reduce inventory, and reduce inventory to off set the reduction in sales. All you need is a high gross margin to help lift cash flow. Keep reducing head count, if needed they should close stores running less than an 9-10% EBITDA. Focus on the markets that make $$$$. Close Canada 14 doors because it just doesn't make sense. Its not worth the trouble for $20 million - $30 million in sales. Launch New Web branding, because most traditional retailers are including comp performance numbers with web performance. its has to be about the customer experience, marketing, and product. just my opinion.
CCO is out the door. That saves the company $800K per year. too much money for CCO. people would die to have this job at half of the salary.
i think that shareholders need to understand that the CCO and CMO can't figure how to market and execute the fashion direction of the brand. i would be shocked if either one of them are in place in the 2012. i worked on the merchandising side for a many years. if these people an't deliver within a 18-24 month window... the party is over. the brand still has legs as the baby boomers are the largest part of population.
what are you factually basing that on?
Big Picture, Walmart to which I am no fan of control the domestic and global retail market. The P-Fresh concept has in place for over 6 months. When you walk into the NYC metro market (largest volume stores in US) Target still lacks the execution needed to attract Walmart's loyal consumer base. I think by moving into a this negative margin fresh food business, will hurt the brand in the next 3-5 years. Its starting loss the cool factor which separated itself from Walmart and other discounters in the first place.
if you back out the $11 billion dollar investment of P-Fresh (and back the out the sales of grocery, retirement is going to be a little longer than you think. the company performance isnt hitting the bullseye
Agreed. The company is struggling with its plan or lack of one to generate both wholesale revenue and retail. Its flagstaff brand Juicy can't ship correctly in domestic accounts.....you can see the lack of salesfloor pen% when walking in bloomingdales,neiman marucs.
nordstrom is exiting them completely. its a 911 for Bill Mc.
Kate spade is totally over. Luck Jeans not so lucky, because retail business and has reduced the # of wholesale accounts.
people seem to forget that the company has invested $1 billion plus in fixing up stores to layer in the p-fresh program. the business on a comp performance should be up and trending higher than current numbers. the problem with p-fresh is the margins on live produce is a margin drainer. the execution for the stores to nail will take months, because you don't go from hardlines and apparel to produce without problems. its going to take 3-6 months just to establish correect ordering models for each store......as a result a lot of product will die because of shelve life. target should be focusing on core businesses, and stop trying to be like walmart. they will never be beat them at the pricing game because walmart trusts the executives at the store level order their own product. so when its 90 degrees out, walmart mgr ordered 10 pallets and drops it on the floor for a $1.oo, target can't touch it.
the company sucks to work for.....fast, fun, and friendly is full of crap. they over pay executives, so they can turn and burn them. I have seen 25 people leave the metro area this year, because of the work/life balance
it doesn't surprise me......the company itself is struggling to keep executives never mind about its customers. the company is squeezing out a ton STL, ETLs, and DTLs out in the NYC metro area. new leadership has killed the "brand" that its a great place to work and shop.
The company is restructuring itself to run leaner at the store level by reducing the executive head count. This is going to impact operating expense for 2nd Qtr. They have removed the OPS executive in any store under a specific volume. my friend got his pink slip this week for March 1st. M will probably use this as a great opportunity to write off for 1st Qtr