Hudson's Bay Co. HBAYF

Spot the malarkey Accounting

[Maxmoe]

Headline numbers for max impact are ‘widening’ losses. But wait. 150 million in hokus pokus deferred tax adjustments is malarkey #1. # 2 inventory values written down by don’t know exactly how much shows up on balance sheet but is stealth increase in headline loss. When they sell that same inventory that was marked down on the balance sheet, poof, profits go up because it wasn’t marked down at the store level. Further digging will no doubt find more kitchen sinks thrown in. Saks looks fine. Where is all the cash from Europe and where is the update from useless independent committee.  Does baker really think this will scare shareholders into taking the lowball bid? Not me.