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Again, this is a story that has played out at many retailers over the past few years, and its impact is greater than simply lost investor confidence in management. When C suite executives anticipate that a company will grow sales next year, they invest ahead of that growth. That's how VRA winds up more having 135% more square footage in four years, at the same time comps (both in store and online) are collapsing, and how SG deleverages 1,000+ bps.

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