First, if you were following the previous Lion Brand-Purple Tree post, check out the most recent comments.
Secondly, you might (not) recall the earlier mention about Spinrite’s spin into an income trust, and its lackluster performance in its first year (-31% return in the first year, which wasn’t actually the worst 2005 offering in Canada). It has done worse: it appears that Spinrite has lost over 84% of its value since February 2005, when it started at $10 per unit: it’s now at $1.52.
While Spinrite partially blamed the “aggressive inventory positions” of craft retailers in the second half of last year (how about retailers on the verge of bankruptcy? do they count?) there’s something promising in their report for the likes of me. Sales of “fancy yarns” fell over the holidays, and the slump is expected to continue for at least a little while. Hurrah.
And Spinrite’s CEO claimed that Spinrite’s range of classic yarns helped buffer against the impact of the falling novelty yarn sales. Well, the classic yarns are classic for a reason, aren’t they?