Sales decline will begin to slow probably 8%-10% in q-4 but they are trading margin for sales at this point. Together, this will lead to a decline in profit and earnings. Dead inventory levels are horrific and not sure of aging of payables but financials shows that AP balance is growing rapidly. The real hidden issue is their brands lack any real sales leadership talent. Probably why they were acquiring companies over the years to hide this definitive weakness. They are closing down facilities rapidly which in the short run will make their financials look better as they eliminate expenses. This will, however, put them in a less competitive position in many regions and they will and are losing market share.

A few items notably absent during the earnings call. First, they never use the word shareholder value. I guess they figured out they are not providing any shareholder value. Second, they never discuss the abysmal computer systems that desperately need upgrading and are a major impediment to real productivity gains. They also never mention that stellar brand that was supposed to carry this company forward, AmSan. Now you know why that holding company was so eager to unload AmSan. AmSan turned out to be another loser brand. This company has made a history of buying declining brands over the years. To many to mention. They did mention that they believe the economy will return to pre 2008 levels and it will. Not happening. These folks are pipe dreaming.

This company is going nowhere fast and the stock will languish below IPO levels for some time to come.
Even with all this bad news, Grebe and his leadership team will reward themselves handsomely once again. All I can say is disgraceful behavior on the part of greedy, selfish group.