Replies to post #111714 on Bravada International Ltd (BRAV)

[stockhero]

Orca already explained it twice.

[La Cima]

How do the financials for Q2 "confirm" a start of a turnaround?

I'm wondering as well. Page 12 of the BRAV Q2 financials paint a contrasting picture, albeit a dreary forecast. Note the 2nd and 3rd paragraphs.

Managements’ Q2 2015 Discussion

NOTE: The Company uses all of its free cash flow from operations to reinvest back into growth. Shareholders should expect that all available liquid resources will be redeployed into growing its business and NOT retained as profit.

During Q2 2015, the Company continued to work on expanding its enterprise and market share within the women’s fashion industry with the launch of a number of new initiatives for its websites. The Company continues to focus on its level 1 websites in terms of maintaining and developing its customer base and growth. The Company expects the economy and the women’s fashion industry to continue to deteriorate marked by increased and aggressive promotional activity by National and International women’s clothing brands. This surge in promotional activity by large national brands continues to place pricing pressures on the overall apparel industry forcing Bravada International to respond in kind to maintain and grow market share. The Company also expects a recession in the United States in the next 18 months with no discernible recovery in the apparel space till 2017, however, the Company continues its efforts to grow its market share in the women’s apparel industry.

The start of Q3 2015 has been the most challenging for the Company to date as weakness in the apparel space has been noticeably evident nationally and globally with a decline in the overall apparel industry in excess of 6%. The dramatic rise in the US dollar has resulted in diminished international sales, specifically from Australia, Canada and Europe where each respective currency has depreciated in excess of 20% against the US dollar. The company expects the strength in the US dollar to continue and any further appreciation may have an additional negative impact on the Company’s international sales.