"This management team has presided over more than a halving in earnings over the past 8 years; and that's despite spending almost $170m - a figure double the current market cap of the company today - on PP&E, the majority of to pursue "growth". Mostly growth of a profitless variety, as has become evident."And the most telling stat of them all, which I forgot to include, is the fact that EBIT per store has fallen by a whopping 70% since the peak in 2010.
And it is not as if it happened suddenly: it has been a slow-motion train smash of secular decline:
View attachment 1380981The strategy of rolling out of new stores for the sake of it, is clearly not working, and yet the management of the company are telling shareholders not to sell their shares and to instead support a management strategy that is failing, and has been foe several years.
In other words, a case of:
"We, TRS management, will just keep pursuing the same value-diminishing strategy that we have for several years, and hope like crazy that it will somehow deliver a different result."They hold shareholders in contempt.
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(20min delay)