School Specialty, Inc. (SCHS)

The recent economic downturn has resulted in an uncertainty in the school districts related to state budget funding levels, which has led to a cautious spending approach. Consequently, <b>School Specialty</b> (<a href=http://www.zacks.com/stock/quote/schs>SCHS</a>) has been registering a sustained decline in the topline. <p> Continued softness in demand is witnessed in both curriculum-based products and supplemental materials. The furniture market has been the worst hit by budget cuts, as school construction and modernization projects have been cancelled or postponed. <p> Further, the intense competition and seasonality of business undermine the company&#39;s future growth prospects. As such, we have an Underperform recommendation on the stock.

Comments

Leave a Reply