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No. of Recommendations: 6
not much to see - recent chatter of an acquisition; I have no idea of the valuation so aborted review

Q4-2014 +4.3% 1547 (613 chs, 118 out, 3 CAD, 441,68-5; 263 S-17-19BP)
Q3-2014 -1.6% 1557 (621 chs, 118 out, 3 CAD, 446, 67-5; 263-17-17)
Q2-2014 +0.3% 1525 (620 chs, 115 out, 441 Wh, 63 out, 4 CAD, 254 Soma, 17 outlets, 11 BP)
Q1-2014 -2.6% 1496 (619 chs, 111 out, 437 wh, 61 out, 3 cad, 243 soma, 16 out, 6 BP)


3-2-15, $18.23, 2719-2459, 26.-1-23.6, 12.0-10.9, dy-1.6%, fcy-4.3%, gcy-9.2%, ni=104, cf=226, cex=120
Charges included; based on adjusted net income; CFFO was 282m but includes accurals

Conclusion
Transition period with modest sqft growth (none on net basis), lower CapEx, accelerated buyback, and focus on a RIF and expense control. Despite this, the stock trades with a fast grower valuation.

Q4 Jan 15
Sales up 8%
Comps -0.5% chs, -1.7 wh/bm; 8.0% soma
Lower GM due to port and promotions
Higher operating income

BS
Inventory down 5.7% per sqft
Plans on accelerated 250m buyback in 2015

Forecast
CapEx of 100m; 30m for POS; 40 new stores (14-16 chs; 10-12 wh; 10-12 Soma; 3-5 PB); 120 closures from 2015 to 17; 55.2m expense savings from closures; plans for 70 to 100m CapEx future years
In 2015 closure of 35 stores; RIF – will save 38m; most closures in chico/whbm
Year at low comps; higher GM and worse SGA;
To late Feb comps up 1%; hurt by recent weather
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