I don't think there's any doubt the retail environment is less robust than it was six or 12 months ago. The causes of that modest slow down are clearly macro-driven. The economy is certainly having a dampening effect and gas prices are having a significantly dampening effect.

There's no doubt the retail environment is sluggish. It's bordering on awful. The number of bombs that are being dropped in retail, there's no shortage, but I'm getting a little bit hopeful that with each bomb it brings us closer to the end.

We're in a much more favorable demographic in this slowdown. We now have 21 percent of the population in its peak earning and spending years as opposed to 15 percent the last time. It tells me that we have a more established, wealthier, happier, more complacent consumer than we had at the last downturn.

Sales are bad. Earnings aren't special. They've got problems.

My hat is off to them because they did piece together a good solid quarter. They were in fact pretty modest about it. They handled themselves quite well. But I don't think it says anything spectacular about the business. I think they're in a pretty lousy business. They manage it well, but managing a lousy business is not the best case.

The stock has been an absolute monster; this was a reality check.