Any comment on how they ended up with a HK listing? Obviously they sell a lot into Asia, but why would that affect listing choice? Maybe currying favor with China government?
Comments on today's H1 earnings? I was surprised by the stock reaction given that mgmt had warned about the increased mktg spend previously. But perhaps the magnitude of the mktg spend and the lackluster non-SdJ rev growth are the reasons.
SdJ results continue to look great. They are going to blow away your 584mm forecast this FY. And margins are as expected for SdJ. I do not think it is crazy to think that SdJ alone is worth more than the current TEV.
Of course, the problem is the other two segments. How do you view the enormous marketing spend in L'Occitane? Is this really an investment, or are they just throwing good money trying to keep a weak and drifting brand alive? A lot of the story here depends on one's trust in management doing the wise thing (by shareholders) with respect to L'Occitane.
Based on the mgmt comments regarding current quarter sales, the marketing spend does not appear to be working any wonders. Perhaps it is too soon to see results?
Elemis results in H1 also disappointed. It is in a tough space with tough competition.
The good news is that at this price, the stock has pessimism for both Elemis and L'Occitane.
Any comment on how they ended up with a HK listing? Obviously they sell a lot into Asia, but why would that affect listing choice? Maybe currying favor with China government?
CS Capital:
I have owned a small position for a while.
Comments on today's H1 earnings? I was surprised by the stock reaction given that mgmt had warned about the increased mktg spend previously. But perhaps the magnitude of the mktg spend and the lackluster non-SdJ rev growth are the reasons.
SdJ results continue to look great. They are going to blow away your 584mm forecast this FY. And margins are as expected for SdJ. I do not think it is crazy to think that SdJ alone is worth more than the current TEV.
Of course, the problem is the other two segments. How do you view the enormous marketing spend in L'Occitane? Is this really an investment, or are they just throwing good money trying to keep a weak and drifting brand alive? A lot of the story here depends on one's trust in management doing the wise thing (by shareholders) with respect to L'Occitane.
Based on the mgmt comments regarding current quarter sales, the marketing spend does not appear to be working any wonders. Perhaps it is too soon to see results?
Elemis results in H1 also disappointed. It is in a tough space with tough competition.
The good news is that at this price, the stock has pessimism for both Elemis and L'Occitane.
Fantastic writeup🙏👍 The timing is great – I just came across this company yesterday when I was looking for Advent calendar ideas for my wife☺️
Great write-up. Do you have any info into why the founder didn't follow through with the take-private?
Retail is a hard business, always will be. You do not have to believe me, simply look at the chart since listing in 2010.