Let’s go right to something Zumiez CEO Rick Brooks says at the end of the conference call on their results.
“…our goals [is to] continue to grow the profitability of the business from [an] operating profit perspective. Now of course if we have recession we’ll go backwards and we’ll see competitors go away across the globe and we expect coming out of the recession we’re going to emerge even stronger with a stronger share position in the marketplace which will allow us to drive operating margin higher again in that case.”
Rick is careful not to predict a recession, though I’ll bet he believes we will have one eventually. That’s what I believe. I’m pretty sure that’s what other executives at various companies believe. Executives who share that belief are building their balance sheets, strengthening their brands, controlling distribution, and positioning themselves to manage expenses. Like Rick, they expect a recession will hurt, but they expect it to hurt other more- to their benefit.