Summary
Finlay lowers 4q outlook. The reason given is weak sales. I am looking at my crystal ball and I am seeing the same report over and over.
Analysis
This last selling season was one of record coupons, promotions, discounts and then deeper discounts as the retailer waged its war for a share of a limited number of dollars. Along with this they opened new stores and staffed them with, less then trained personel and not nearly enough personel to service the customers. I know that this is like beating a dead horse, but that is retail today. Retail is no longer merchandising but discounting and being lower then the next guy. Who is wanting to be lower then the other guy. The winner--the consumer--if he/she has any money to spend.
Ford is to offer buyouts to long time, but expensive, employee, to hire workers at a lower wage. Business sence that is a wise move, but will the lower wage translate into more retail activity? Unless of course there are more discounts and coupons. And that will create more reports of lower expectations at the end of the year. Yet, I do say that there will be more stores opened to dilute the few dollars even more.
