Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
just getting reacquainted with the story.

Minor nitpicking. SSS was solid but helped by the 13 week Q. Transactions were down. Half of categories were negative (i know it was explained later that this was biz usual). still, i would have expected a bit better given the environment.

LT, the 1-2% SSS target feels not strong enough to get leverage on margins, and their own history shows more fluctuation than the typical off-price/$ stores.

And this is getting priced for perfection. Let's say they open 1000 stores (3.5x from today) @ $4.5 sales/store, and do 10% op margin. That's $450m EBIT vs. $3.7B mkt cap/EV, a multiple where most mature retailers trade at. For sanity check, BIG did $5.3B sales and trades at a $1.8B mkt cap.

mgmt sounds a bit promotional on the call, though i get a chuckle out of the "one star two star generals".

Then again, i have never been to a store, so...
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.