) to hold from buy.
Analyst Joan Bogucki-Storms says she's concerned about the company's ability to execute a turnaround. She calls July sales disappointing. Bogucki-Storms notes she regularly visited about 20 Factory 2 U stores in Los Angeles and Orange counties during July to assess the progress of floor resets, as well as the success of a grand opening campaign. She says initial visits showed substantial progress, but follow-up visits did not suggest the company has the ability to sustain improvements to merchandising and operations. Bogucki-Storms cut her $0.05 fiscal 2003 (Jan.) earnings per share estimate to a $0.30 loss.