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Teen Clothing Chains Nix Monthly Reports
February 3, 2011
FROM RETAILWIRE:
Abercrombie & Fitch, Aeropostale and American Eagle Outfitters will no longer announce monthly results. Does ending monthly reports make for better longer-term results for retailers or will it lead to masking problems that need addressing?
[more...]
The answer to your specific question is "it depends." On the positive side, monthly financial reporting forces retailers (and manufacturers too) to stay close to their business and take accountability for their actions with shareholders.
But this curse of monthly reporting drives short-term actions which in retailing can be deadly. There is enough pressure to promote. Retailers are better off without the artificial promotion pressure to hit monthly Wall Street calls.
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