Contrary to the rumor spreading that has True Religion missing first-quarter guidance, we believe it will be at the high end of plan or slightly above. |
In our opinion, the simple analysis of the downward revision is the watch business stinks, it's not going to get better for a long time, and investors should stay on the sidelines until we see signs of a turnaround. |
Short-term traders are disappointed after they'd hoped for a large upward revision. |
The only negative was that revenue came in a little light. |
There's concern they're nearing the end of their growth curve. Investors tend to shoot first and ask questions later. |
They've made a lot of important and not easy steps in closing some divisions. But I think there might be more fat to trim. |
We're looking at a $2.1B-revenue company now, whereas two years ago it was a $1.3 billion company. |
While we applaud the difficult decision to reduce the workforce in order to enhance shareholder value, yesterday's restructuring announcement leads us to suspect headwinds may be stronger than previously indicated. |