| | | WWW.
"The reason for the poor cash flows was due to not billing receivables and overspending on inventory."
Days sales of inventory is a record high.
"Turnaround and delevering" might help. Company seems to have a loyal base, and it's been hard to improve on that: not really a lot of growth in sales over the years, certainly as compared to the hot competitors the company faces. Company needs to do a lot better. Maybe change name, reduce scope of brands, maybe focus on Saucony.
Saucony. I wear running shoes, but don't run. Like a lot of people. After all this, even now I've no idea how they even pronounce S A U C O N Y. Where are TV ads as with Skechers?
They'll introduce new and better running shoes. And discount the current inventory. A price drop that will force people - loyal customes - to consider if they want the "cheaper" old style or want to step up to latest.
Skechers has gone through inventory issues before, at least twice, with its running shoes. It took about a year for the stock to recover. If somebody bought when issues were announced and held through the subsequent year, they got more than a double on their investment.
If WWW can show some improvement, the stock (at $9 now) should be able to hit $15, a level its seen in many of the past years. The competition is so tough now though, with several new competitors. Companies with better growth and better balance sheets. I don't see how WWW can pull itself up. I could be very wrong though.
Anyway, just to keep myself interested, I'll open a Very Small tracking position. Shorting a few shares here. |
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