While they have maintained sales $ they have opened 13 new stores to do that. So in that alone you are paying more rent, more staff, more over heads to get the same result. That's before wage increases and any COGS increases.
The issue is same stores sales will be down quite a bit. Same stores sales is the true trend number here.
The question would be once these new stores are up a running will they become much more profitable. Will this happen even in a downturn?
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