I had too much confidence in CEO Dyer,who has always bounced back quickly from tough quartes at CHS. Not this time, though, as the company reported a really bad Q2. Sales were 4% below consensus, leading to an 18% EPS short-fall (.27 instead of .33). The press release didn't have a lot of info. Inventory was up a lot, but they explained this and it turns out that in-store inventory fell on a per-store basis. The call will shed more insight. The huge miss on EPS suggests that they ended up being pretty promotional (sacrificing margin to get sales).
Is this a big surprise really? The stock was at a 52-week low. Next support appears to be 13.50. More after the call...
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