Wal-Mart has been losing same-store sales momentum due to store cannibalization and it's stock has been dead money for over five years compared to Target.
Kinko's has gotten the wake-up call.
What is behind everything that Luxottica has done worldwide is, they get so powerful they can fry the suppliers' brains out. If you're an independent seller of eyewear, you have a problem. You have to live on service and relationships and fashion and all of that, but it's very difficult to compete with somebody who is buying the same product for less.
If you look at Helen of Troy's customer base, sales are generally strong. Wal-Mart sales are up, Target sales are up.
Is Wal-Mart going after the Hispanic and African-American consumers? Absolutely. They're a significant percentage of Wal-Mart shoppers.
He's a brilliant financial engineer. His record is always the same: cut costs, sell assets. That's terrific, only that's no way to run a retail business.
Kinko's is under assault, and I think what Kinko's is doing is totally rational.
I think there are major risks in sales and margins when you're a middleman. More and more companies are buying direct and don't see a need for Helen of Troy. Their brands are not that powerful, ... This doesn't mean it can't bounce back. They have to be shrewd and quick to right the ship.
When a company has bad performance and new owners, look for musical chairs.
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