“Net earnings for fiscal year 2005 were $106.8 million, or $2.05 per diluted share. For the prior fiscal year, net earnings were $106.5 million, or $1.99 per diluted share. For the fiscal year, total revenues increased 3.4% to $2.383 billion, compared to $2.304 billion for the prior fiscal year. On a comparable store basis, sales increased 0.3% for the year.... “The increases to sales and earnings in fiscal 2005 did not meet our expectations, particularly due to the underperformance of the Zale brand and its impact on our consolidated result.”
Judging from headlines not pursued, they may have mucked with the books to get those results. Lots of people have resigned and there seems to be and SEC investigation
But my point—even with lots of DM testing, few tests generate 98 percent certainty.
What confidence level do DM companies really require before they change a control, and does it vary with the size of the company or with other factors?
DH to readers:
If anyone cares to jump into this debate, please do. Given yesterday’s special report in The Wall Street Journal, which contained an article, “Testing, Testing,” I get the sense that testing is the least understood aspect of marketing. Yet it is the most important.