Regarding the CFRA report, I don't value the info to compare straight numbers from one year to another. The problem of this type of comparison is that it does not take into account the change in accounting methods and it does not take into account the change by acquisition of Hills and some Caldor stores.
In 1998, AMES was run in its peak performance, except for the investment in new POS computers. In 1999, the expense of remodeling of Hills and caldor was done very cheap, but it was not amortized. Hills was viewed as a problem that AMES has to resolve, in term of merchandise vs.location and staff vs. retraining in AMES way and all that culture differences. On top of all this is the outsourcing of the IT dept. which runs accounting, to IBM. Reading all this into the released accounting information, I feel that the expenses were kept low, which is an accomplishment.
So, 1999 passed and some past bad news is to be expected. This year 2000 should see $3.35 real earnings; if the problems of consolidation is resolved and behind us.
On the other hand, Mr. Ettore is building the company by upgrading the employees. Streamlining the warehouse operations. and just yesterday, promoted Mr. Lamire to put emphasis on advertizing. Maybe they will compete with Bradlees head on by including AMES flyers with the Boston Sunday Globe. Who knows? It is a brand new year, many good and wonderful things may happen on Mr. Lamire's watch. |
