Retailer Stock Tumbles as Turnaround Delayed, Inventory Discounting Hits Margins
- Shares down 27% on weaker full-year guidance and delayed financial targets
- Improvement not expected until 2024-2026, later than previously thought
- Excess inventory being cleared through discounts, hurting margins
- Net closing underperforming stores to have fewer, more productive doors
- Risky assumption that sales trends will improve later in 2024 as discounting slows