I disagree,you wrote...
<<but one thing that it shows the pressures cpu faces. with margins declining on products, sales are not keeping pace to allow for growth and profits.>>
But SSS doesn't say anything about margins, and, great SSS figures may mask a margin problem that results in lower earnings and stock prices. So...i think your making my point. The figures do not directly reflect the health of CPU. By the way, sales growth is there, 20%, although it was gained through acquisition and not reflected in SSS. The problem today isn't so much the lack of top line growth the problem is bottom line oriented, (the whole industry is suffering through top line growth slowing, the question is is the model profitable?).
I would agree that sometimes increases in sales indicates lower competition and therfore higher pricing power and therfore greater margins and better bottom line results, but again, SSS in this instance just does not apply. (Just think how those 39 CCI stores are going to reflect a big jump in SSS when the year since acquisition comes around and they go into the mix of SSS figures). Again, it is not accurate in depicting if the CPU stores are selling more to customers or getting more customers or if the company is healthy.
IMO |
