RE: RE: RE: RE: please somebody be critical...re: Shrinking margins
Margins were under pressure a few years ago and it was a consistent problem. For the past 2 years or so, this certainly has not been the case. Coastal has consistently kept their advertising and SGA at 11-13% (each) of their revenue. If anything, they have been falling.
In the past quarter, if you had read their MD&A, they explained that their sales would have been several % points higher had it not been for foreign exchange. Also, this past quarter is typically their slowest. They intentionally did additional promotional activities (read: sold at cost or below on some items) to attract new clients which they hopefully will end up in their 70% renewal income stream. This would have squeezed their margins, temporarily.
If you simply add back foreign exchange, their margins are back to normal. In years past, foreign exchange would have ended up with losses for the quarter. Not so this past quarters. Margins are steadily improving while significantly growing the top line.