GIL: '09 Question Mark

08/13/08 08:28AM EDT
GIL's quarter was in line with pre-announcement -- so nothing to comment there above and beyond what I said last night. But the simple fact that the company said it should see a positive mix shift in '09 and would continue to rationalize its sock business, yet it cannot provide guidance for '09 as it needs to take up prices for the year to offset (yet-to-be-procured/hedged) cotton and energy costs. This is the first time in GIL's recent history where factors like this are part of the equation. It had ample visibility under its old model -- but not the new one. I still think sales are slowing, GM% is rolling, SG&A ratio is headed higher, and the Street's 140bp EBIT margin improvement expectation for '09 is in the clouds.
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