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Non-Tech : Sunglass Hut RAYS- Will it ever breakout?

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To: marc chatman who wrote (623)10/1/1997 12:21:00 AM
From: Hamid Pourjalali   of 971
 
Marc:

I am sorry to ask these questions, I am not very familiar to this industry. Has the company not closed some of the unprofitable stores? if so What other stores are you referring to? Is it customary for companies similar to RAYS to open stores for summer and close them in winters? In that case I can follow your comments.

In general, one can expect to see a reduction in total sales and Earnings Per Share during the cooler months. People do not spend as much time outdoors and do not need sun-glasses. That's why the expected EPS for the following quarter will be a lot lower than that of the last quarter. The market, normally, incorporates such seasonal sales fluctuations. I agree with you with respect to cutting costs. Any company that wants to survive in such a competetive market needs to cut costs and increase effective advertising.

Your comments are appreciated.
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