) to neutral.
Analyst Ozarslan Tangun says he downgrades the company from a long-term buy on weaker-than-expected holiday (November/December) comparable sales, and a forecast of low single-digit comparable sales for fiscal 2005.
He notes the company said sales were lower than expected mainly due to very weak iJoy massage chair sales, and soft sales in the acoustic category, despite good performance from many of its new products.
Tangun says increased catalog circulation helped drive top-line revenue, but disappointed additional circulation did not drive more traffic into stores. He cuts $1.16 fiscal 2005 (ending January) earnings per share estimate to $1.05, and $1.37 fiscal 2006 to $1.20.