It's not good; We have inventory up more than expected, which investors will focus on. Margins are lower. Costs, particularly labour, are higher. Guidance was lowered. Based on channel checks and the own company's guidance earlier this year (just two months ago), we really expected better things. It looks like consumers 'turned' in June and stopped buying. ATZ noted a deceleration in traffic. Margins are expected to decline 3 points, worse than 2 expected earlier. 2Q revenue is expected to be flat or slightly down. Q1 earnings were 10c vs 9c expected and sales were slightly better than expected, but investors won't care and will focus on the guidance and cost creep. We thought expectations were too low and were wrong. This is a big disappointment and contrary to management's usually good handle on the business. Last quarter the stock fell 23% and we would expect a big hit initially today. ATZ 'talked up' growth next year with more store openings but again we doubt investors are going to care much in the short term about next year promises.
5i Research Answer: