Kaley's Knits: Diverging Metrics

Recall, the profit and loss statement showed top-line growth, but weak metrics below the net sales line.  Let's take a look at demand growth, on a rolling twelve month basis.

What we see is a business that was struggling, then reversed flat growth in the fall of 2011.  Since then, growth has been reasonably robust.  On the surface, things look good.

The next chart I look at is a rolling twelve month analysis of twelve-month buyers.

What do you see?

This business had marginal growth in the number of twelve-month buyers, followed by a significant drop that started in late spring 2012.

The customer file is in decline.  Top-line growth continues.  What do you think is happening at Kaley's Knits?