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Stocks B / Bare Escentuals


Subject:  Re: Why is the street surprised? Date:  7/31/2008  9:31 AM
Author:  TMFSarahGen Number:  105 of 121

Doesn't the weak consumer expectation manifest itself in the drop from 30 to 16? I guess not.


Absolutely agree. It's tough to keep saying, "wow, this is an even better value point to enter" even though it is. Because who has endless free cash on the sidelines to buy into each new value point?

BARE has said (not so much shown as the actual numbers were good) for the first time that they are susceptible to a weak consumer.

They're huge repeat business is fantastic, but they're hitting slower new adoption, and new customers.

They have several new efforts going into the fall that should help (like a sampling program in September) to aggressively go after new customers. Plus there is the ongoing addition of new 'doors' as they expand in Nordstrom's, Macy's, and Ulta and Sephora aggressively open more doors into the end of the year. Should be a nice seasonal upswing into the end of the year.

But meanwhile, there is ... today..

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