“This is a restructuring story. I don’t think you’re going to see any of the results this year,” she said on Friday’s “Halftime Report.” “I think the announcement they made yesterday, in terms of increasing their restructuring program, the size of it…they’re clearing the deck, to get all the bad out in 2018 so you have a much cleaner story in 2019.”
Poser’s bear thesis on the stock centers around stalling revenue growth due to poor inventory and supply chain management. “Topline growth remains well below the 22% CAGR [compound annual growth rate] over the past 5 years…there is little indication revenue growth can or will return to anywhere near the aforementioned growth rate…additionally, bloated inventory puts FY18 gross margin guidance at risk and poor distribution decisions continue to undermine the brand,” he wrote.
But Link, a managing director at Nuveen, which has $970 billion in assets under management, believes the company has identified these issues and is successfully taking action.