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I don’t need to know much about the racy Eva Mendez ‘naked-gate’ ads or Speedo’s gold medal count to track the decelerating trends on WRC’s cash flow statement.


  • I’m going through WRC’s 10Q and looking through the new disclosure not discussed on the conf call. Pardon the 3-day delay, but this thing is 893 pages.
  • The chart in Exhibit 1 shows trailing 12 month cash from ops over free cash flow per share. Not too encouraging. There are a ton of puts and takes which makes these numbers cloudy (that’s par for the course w WRC). But when I make all adjustments, it takes ‘normalized’ cash from ops down in the latest quarter.
  • What happens when FX gives way, margins at CK Jeans and Europe start to crack at the same time company-owned store growth accelerates?
Cash flow not looking good. ♠
You Tube can do a better job showing the full blown ad than I can.