Seriously, read the notes from the conference call below and tell me if you’d like to be in this business?
Believes the North American Retail environment remains highly promotional
Co will be actively decreasing its exposure to the wholesale channel by reducing inventory levels to focus on a higher level of full price sellthroughs and less markdowns
Total accessories grew in low double-digits globally
Weakness in wholesale
Growth in handbags
During 2017, co plans to open ~10 retail locations and 150 men’s shops
Expects results to be challenged in 2017 by difficult retail environment pressured by weak traffic and tourism trends
Results in Q4 include ~$34 mln of additional retail sales b/c of 53 week period
Gross margin declined 50 bps to 58.2%, which includes negative FX impact of 100 bps
inventory increased 5.2% for the quarter
Seeing acceleration of mall traffic softening in North America
FY 17 Guidance
Margins are softening. Everything hinges on discounts. An accleration of mall traffic softening is occurring in N. America aka the mall is dead. Overall weak trends in retail and tourism markets.
The stock is higher by 6% on this news? You people are nuts.
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He’s a creative genius (bleh!) What do you expect from a conference call when a creative genius (bleh!) is behind it.