New Crash Indicator Buy: High Overhead Spells Trouble for this Brick and Mortar Luxury Retailer
Many retailers have suffered from both margin compression and a delayed entry into online sales. Also, reduced margins are a byproduct of global deflationary trends and the inability to push through price increases to customers. Today, Jim and Scott identify one high end retailer that has seen margins decrease due to both a late entry into internet retailing as well as high overhead from their bricks and mortar business plan. Along with supply chain uncertainty from a prolonged trade war, this company is a good candidate for a “flatlining” stock price.